State of Illinois
92^nd General Assembly
Legislation

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92_HB2099eng

HB2099 Engrossed                               LRB9207727LDpr

 1        AN ACT in relation to public employee benefits.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Illinois  Pension  Code  is amended by
 5    changing Sections 8-110, 8-113, 8-120, 8-137, 8-138, 8-150.1,
 6    8-158, 8-161, 8-167, 8-168, 8-171, 8-227,  8-230.7,  8-243.2,
 7    11-125.8, 11-134, 11-134.1, 11-145.1, 11-153, 11-156, 11-164,
 8    11-167,  and 15-112 and adding Sections 5-233.1, 8-230.9, and
 9    8-230.10 as follows:

10        (40 ILCS 5/5-233.1 new)
11        Sec. 5-233.1.  Transfer of creditable service to  Article
12    8 or 11 fund.  A person who (i) is an active participant in a
13    fund  established under Article 8 or 11 of this Code and (ii)
14    has at least 10 and no  more  than  22  years  of  creditable
15    service  in  this  Fund may, within the 90 days following the
16    effective date of this Section, apply for transfer of his  or
17    her  credits  and creditable service accumulated in this Fund
18    to the Article 8 or 11 fund.  At the time  of  the  transfer,
19    this  Fund  shall  pay  to the Article 8 or 11 fund an amount
20    consisting of:
21             (1)  the amounts credited to the  applicant  through
22        employee contributions for the service to be transferred,
23        including interest; and
24             (2)  the    corresponding    municipality   credits,
25        including interest, on the books of the Fund on the  date
26        of transfer.
27    Participation  in  this  Fund  with  respect  to  the credits
28    transferred shall terminate on the date of transfer.

29        (40 ILCS 5/8-110) (from Ch. 108 1/2, par. 8-110)
30        Sec. 8-110. Employer.  "Employer":
 
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 1        (1)  a city of more than 500,000 inhabitants;
 2        (2)  or the Board of Education of  the  such  city,  with
 3    respect to any of its employees who participate in this Fund;
 4        (3)  the  Chicago  Housing Authority, with respect to any
 5    of its employees who participate in this Fund subject to  the
 6    provisions of Section 8-230.9;
 7        (4)  the  Public  Building  Commission  of the city, with
 8    respect to any of its employees who participate in this Fund;
 9    and
10        (5)  to which this Article  applies,  or  the  Retirement
11    Board.
12    (Source: Laws 1968, p. 181.)

13        (40 ILCS 5/8-113) (from Ch. 108 1/2, par. 8-113)
14        Sec.  8-113.   Municipal employee, employee, contributor,
15    or   participant.      "Municipal   employee",    "employee",
16    "contributor", or "participant":
17        (a)  Any   employee   of  an  employer  employed  in  the
18    classified civil service  thereof  other  than  by  temporary
19    appointment  or  in  a  position  excluded or exempt from the
20    classified service by the Civil Service Act, or in  the  case
21    of a city operating under a personnel ordinance, any employee
22    of  an  employer employed in the classified or career service
23    under the provisions of a personnel ordinance, other than  in
24    a  provisional  or  exempt  position  as  specified  in  such
25    ordinance or in rules and regulations formulated thereunder.
26        (b)  Any  employee  in  the service of an employer before
27    the Civil Service Act came in effect for the employer.
28        (c)  Any person employed by the board.
29        (d)  Any person employed after  December  31,  1949,  but
30    prior  to  January 1, 1984, in the service of the employer by
31    temporary appointment  or  in  a  position  exempt  from  the
32    classified  service as set forth in the Civil Service Act, or
33    in a provisional or  exempt  position  as  specified  in  the
 
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 1    personnel ordinance, who meets the following qualifications:
 2        (1)  has   rendered  service  during  not  less  than  12
 3    calendar months to an employer as an  employee,  officer,  or
 4    official,  4  months of which must have been consecutive full
 5    normal working months of service rendered  immediately  prior
 6    to filing application to be included; and
 7        (2)  files  written  application with the board, while in
 8    the service, to be included hereunder.
 9        (e)  After December  31,  1949,  any  alderman  or  other
10    officer  or  official  of  the  employer, who files, while in
11    office, written application with the  board  to  be  included
12    hereunder.
13        (f)  Beginning January 1, 1984, any person employed by an
14    employer  other  than  the  Chicago  Housing Authority or the
15    Public Building Commission of the city, whether or  not  such
16    person  is  serving by temporary appointment or in a position
17    exempt from the classified service as set forth in the  Civil
18    Service  Act,  or  in  a  provisional  or  exempt position as
19    specified in the  personnel  ordinance,  provided  that  such
20    person  is  neither  (1)  an  alderman  or  other  officer or
21    official of the employer, nor (2) participating, on the basis
22    of such employment, in any other pension fund  or  retirement
23    system established under this Act.
24        (g)  After  December 31, 1959, any person employed in the
25    law department of the city, or municipal court  or  Board  of
26    Election Commissioners of the city, who was a contributor and
27    participant, on December 31, 1959, in the annuity and benefit
28    fund  in operation in the city on said date, by virtue of the
29    Court and Law Department Employees' Annuity Act or the  Board
30    of Election Commissioners Employees' Annuity Act.
31        After   December   31,  1959,  the  foregoing  definition
32    includes any other person employed or to be employed  in  the
33    law  department,  or municipal court (other than as a judge),
34    or Board of Election Commissioners (if his salary is provided
 
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 1    by appropriation of the city council  of  the  city  and  his
 2    salary  paid by the city) -- subject, however, in the case of
 3    such persons  not  participants  on  December  31,  1959,  to
 4    compliance  with  the  same  qualifications  and restrictions
 5    otherwise set  forth  in  this  Section  and  made  generally
 6    applicable  to  employees  or officers of the city concerning
 7    eligibility for participation or membership.
 8        (h)  After December 31, 1965, any person employed in  the
 9    public library of the city -- and any other person -- who was
10    a  contributor  and participant, on December 31, 1965, in the
11    pension fund in operation in the city on said date, by virtue
12    of the Public Library Employees' Pension Act.
13        (i)  After December 31, 1968, any person employed in  the
14    house  of  correction  of the city, who was a contributor and
15    participant, on December 31, 1968, in  the  pension  fund  in
16    operation in the city on said date, by virtue of the House of
17    Correction Employees' Pension Act.
18        (j)  Any  person  employed  full-time  on  or  after  the
19    effective  date  of  this  amendatory Act of the 92nd General
20    Assembly by the Chicago Housing Authority who has elected  to
21    participate  in  this  Fund  as provided in subsection (a) of
22    Section 8-230.9.
23        (k)  Any person employed full-time by the Public Building
24    Commission of the city who has elected to participate in this
25    Fund as provided in subsection (d) of Section 8-230.7.
26    (Source: P.A. 83-802.)

27        (40 ILCS 5/8-120) (from Ch. 108 1/2, par. 8-120)
28        Sec. 8-120.  Child or children.  "Child"  or  "children":
29    The  natural  child  or  children,  or  any child or children
30    legally adopted by an employee at least one year prior to the
31    date any benefit for the child or children  accrues,  and  so
32    adopted prior to the date the employee attained age 55.
33    (Source: P.A. 84-1028.)
 
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 1        (40 ILCS 5/8-137) (from Ch. 108 1/2, par. 8-137)
 2        Sec. 8-137.  Automatic increase in annuity.
 3        (a)  An  employee  who  retired  or  retires from service
 4    after December 31, 1959 and before January  1,  1987,  having
 5    attained  age 60 or more, shall, in January of the year after
 6    the year in which the first anniversary of retirement occurs,
 7    have the amount of his then fixed and payable monthly annuity
 8    increased by 1 1/2%, and such first fixed annuity as  granted
 9    at  retirement  increased  by  a further 1 1/2% in January of
10    each year thereafter.  Beginning with  January  of  the  year
11    1972,  such  increases  shall be at the rate of 2% in lieu of
12    the aforesaid specified 1 1/2%, and beginning with January of
13    the year 1984 such increases shall be  at  the  rate  of  3%.
14    Beginning  in January of 1999, such increases shall be at the
15    rate  of  3%  of  the  currently  payable  monthly   annuity,
16    including   any   increases  previously  granted  under  this
17    Article.  An employee who retires on annuity  after  December
18    31, 1959 and before January 1, 1987, but before age 60, shall
19    receive such increases beginning in January of the year after
20    the year in which he attains age 60.
21        An  employee who retires from service on or after January
22    1, 1987 shall, upon the first annuity payment date  following
23    the  first anniversary of the date of retirement, or upon the
24    first annuity payment date following attainment  of  age  60,
25    whichever  occurs  later,  have  his  then  fixed and payable
26    monthly annuity increased by 3%, and such  annuity  shall  be
27    increased  by  an additional 3% of the original fixed annuity
28    on the same date each year thereafter.  Beginning in  January
29    of  1999,  such  increases  shall be at the rate of 3% of the
30    currently payable monthly annuity,  including  any  increases
31    previously granted under this Article.
32        (a-5)  Notwithstanding  the provisions of subsection (a),
33    upon the first annuity payment date following (1)  the  third
34    anniversary  of  retirement, (2) the attainment of age 53, or
 
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 1    (3) the date  60  days  after  the  effective  date  of  this
 2    amendatory Act of the 92nd General Assembly, whichever occurs
 3    latest,  the  monthly  pension  of an employee who retires on
 4    annuity prior to  the  attainment  of  age  60  who  has  not
 5    received  an increase under subsection (a) shall be increased
 6    by 3%, and such annuity shall be increased by  an  additional
 7    3%  of  the  current  payable monthly annuity, including such
 8    increases previously granted under this Article, on the  same
 9    date  each year thereafter. The increases provided under this
10    subsection  are  in  lieu  of  the  increases   provided   in
11    subsection (a).
12        (b)  Subsections   (a)   and   (a-5)  are  The  foregoing
13    provision is not  applicable  to  an  employee  retiring  and
14    receiving  a  term  annuity,  as  herein  defined, nor to any
15    otherwise qualified employee  who  retires  before  he  makes
16    employee  contributions (at the 1/2 of 1% rate as provided in
17    this Act) for this additional annuity for not less  than  the
18    equivalent  of  one  full year. Such employee, however, shall
19    make arrangement to pay to the fund a balance of such 1/2  of
20    1%  contributions,  based  on his final salary, as will bring
21    such 1/2 of 1% contributions, computed without  interest,  to
22    the equivalent of or completion of one year's contributions.
23        Beginning   with   January,  1960,  each  employee  shall
24    contribute by means of salary deductions 1/2 of  1%  of  each
25    salary  payment,  concurrently  with  and  in addition to the
26    employee contributions otherwise made for annuity purposes.
27        Each such additional contribution shall be credited to an
28    account in the prior service annuity  reserve,  to  be  used,
29    together  with  city contributions, to defray the cost of the
30    specified annuity increments. Any balance in such account  at
31    the  beginning  of  each calendar year shall be credited with
32    interest at the rate of 3% per annum.
33        Such   additional   employee   contributions   are    not
34    refundable,  except  to an employee who withdraws and applies
 
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 1    for refund under this Article, and  in  cases  where  a  term
 2    annuity  becomes  payable.  In  such  cases his contributions
 3    shall be refunded, without  interest,  and  charged  to  such
 4    account in the prior service annuity reserve.
 5    (Source: P.A. 90-766, eff. 8-14-98.)

 6        (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
 7        Sec. 8-138.  Minimum annuities - Additional provisions.
 8        (a)  An  employee who withdraws after age 65 or more with
 9    at least 20 years of service, for whom the amount of age  and
10    service  and  prior service annuity combined is less than the
11    amount stated  in  this  Section,  shall  from  the  date  of
12    withdrawal,  instead  of all annuities otherwise provided, be
13    entitled to receive an annuity for life of $150 a year,  plus
14    1  1/2%  for each year of service, to and including 20 years,
15    and 1 2/3% for each year of service over  20  years,  of  his
16    highest  average  annual  salary  for any 4 consecutive years
17    within the last 10 years of service immediately preceding the
18    date of withdrawal.
19        An employee who withdraws  after  20  or  more  years  of
20    service, before age 65, shall be entitled to such annuity, to
21    begin not earlier than upon attained age of 55 years if under
22    such  age  at withdrawal, reduced by 2% for each full year or
23    fractional part thereof that his attained age  is  less  than
24    65,  plus  an  additional  2% reduction for each full year or
25    fractional part thereof that his attained age when annuity is
26    to begin is less than 60 so that the total reduction  at  age
27    55 shall be 30%.
28        (b)  An employee who withdraws after July 1, 1957, at age
29    60  or  over,  with 20 or more years of service, for whom the
30    age and service and prior service annuity combined,  is  less
31    than  the  amount  stated  in this paragraph, shall, from the
32    date of withdrawal, instead of such annuities, be entitled to
33    receive an annuity for life equal to 1 2/3% for each year  of
 
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 1    service,  of  the  highest  average  annual  salary for any 5
 2    consecutive  years  within  the  last  10  years  of  service
 3    immediately preceding the date of withdrawal; provided,  that
 4    in the case of any employee who withdraws on or after July 1,
 5    1971,  such  employee age 60 or over with 20 or more years of
 6    service, shall receive an annuity for life equal to 1.67% for
 7    each of the first 10 years of service; 1.90% for each of  the
 8    next  10  years of service; 2.10% for each year of service in
 9    excess of 20 but not exceeding 30; and 2.30% for each year of
10    service in excess of 30, based on the highest average  annual
11    salary  for  any 4 consecutive years within the last 10 years
12    of service immediately preceding the date of withdrawal.
13        An employee who withdraws after July 1, 1957  and  before
14    January 1, 1988, with 20 or more years of service, before age
15    60  years  is  entitled to annuity, to begin not earlier than
16    upon  attained  age  of  55  years,  if  under  such  age  at
17    withdrawal, as computed  in  the  last  preceding  paragraph,
18    reduced  0.25% for each full month or fractional part thereof
19    that his attained age when annuity is to begin is  less  than
20    60  if  the employee was born before January 1, 1936, or 0.5%
21    for each such month if the employee  was  born  on  or  after
22    January 1, 1936.
23        Any  employee  born before January 1, 1936, who withdraws
24    with 20 or more years of service, and any employee with 20 or
25    more years of service who withdraws on or  after  January  1,
26    1988,  may  elect  to  receive, in lieu of any other employee
27    annuity provided in this Section, an annuity for  life  equal
28    to 1.80% for each of the first 10 years of service, 2.00% for
29    each  of the next 10 years of service, 2.20% for each year of
30    service in excess of 20 but not exceeding 30, and  2.40%  for
31    each  year of service in excess of 30, of the highest average
32    annual salary for any 4 consecutive years within the last  10
33    years   of   service   immediately   preceding  the  date  of
34    withdrawal, to begin not earlier than upon attained age of 55
 
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 1    years, if under such age at  withdrawal,  reduced  0.25%  for
 2    each  full month or fractional part thereof that his attained
 3    age when annuity is to begin is less than 60; except that  an
 4    employee  retiring  on or after January 1, 1988, at age 55 or
 5    over but less than age  60,  having  at  least  35  years  of
 6    service, or an employee retiring on or after July 1, 1990, at
 7    age 55 or over but less than age 60, having at least 30 years
 8    of service, or an employee retiring on or after the effective
 9    date  of  this  amendatory Act of 1997, at age 55 or over but
10    less than age 60, having at least 25 years of service,  shall
11    not be subject to the reduction in retirement annuity because
12    of retirement below age 60.
13        However,  in  the  case  of an employee who retired on or
14    after January 1, 1985 but before January 1, 1988, at  age  55
15    or  older  and with at least 35 years of service, and who was
16    subject  under  this  subsection  (b)  to  the  reduction  in
17    retirement annuity because of retirement below age  60,  that
18    reduction  shall  cease  to be effective January 1, 1991, and
19    the retirement annuity shall be recalculated accordingly.
20        Any employee who withdraws on or after July 1, 1990, with
21    20 or more years of service, may elect to receive, in lieu of
22    any other employee  annuity  provided  in  this  Section,  an
23    annuity  for  life equal to 2.20% for each year of service if
24    withdrawal is before 60 days after the effective date of this
25    amendatory Act of the 92nd General  Assembly,  or  2.40%  for
26    each  year  of  service  if  withdrawal  is 60 days after the
27    effective date of this amendatory Act  of  the  92nd  General
28    Assembly  or  later, of the highest average annual salary for
29    any 4 consecutive years within the last 10 years  of  service
30    immediately  preceding  the  date of withdrawal, to begin not
31    earlier than upon attained age of 55 years, if under such age
32    at  withdrawal,  reduced  0.25%  for  each  full   month   or
33    fractional part thereof that his attained age when annuity is
34    to begin is less than 60; except that an employee retiring at
 
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 1    age 55 or over but less than age 60, having at least 30 years
 2    of  service,  shall  not  be  subject  to  the  reduction  in
 3    retirement annuity because of retirement below age 60.
 4        Any employee who withdraws on or after the effective date
 5    of  this  amendatory  Act  of  1997  with 20 or more years of
 6    service may elect to receive, in lieu of any  other  employee
 7    annuity  provided  in this Section, an annuity for life equal
 8    to 2.20%, for each year of service, if withdrawal  is  before
 9    60  days  after  the effective date of this amendatory Act of
10    the 92nd General Assembly, or 2.40% for each year of  service
11    if  withdrawal  is  60  days after the effective date of this
12    amendatory Act of the 92nd General Assembly or later, of  the
13    highest  average  annual  salary  for any 4 consecutive years
14    within the last 10 years of service immediately preceding the
15    date of withdrawal, to begin not earlier than upon attainment
16    of age 55 (age 50 if the employee has at least  30  years  of
17    service),  reduced  0.25%  for  each  full month or remaining
18    fractional part thereof that the employee's attained age when
19    annuity is to begin is less than 60; except that an  employee
20    retiring  at age 50 or over with at least 30 years of service
21    or at age 55 or over with at least 25 years of service  shall
22    not be subject to the reduction in retirement annuity because
23    of retirement below age 60.
24        The  maximum  annuity  payable  under part (a) and (b) of
25    this Section shall not exceed 70% of highest  average  annual
26    salary in the case of an employee who withdraws prior to July
27    1,  1971,  and 75% if withdrawal takes place on or after July
28    1, 1971 and prior to 60 days after the effective date of this
29    amendatory Act of  the  92nd  General  Assembly,  or  80%  if
30    withdrawal  is  60  days  after  the  effective  date of this
31    amendatory Act of the 92nd General Assembly or later. For the
32    purpose of the  minimum  annuity  provided  in  this  Section
33    $1,500  is considered the minimum annual salary for any year;
34    and the maximum annual salary for  the  computation  of  such
 
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 1    annuity  is  $4,800  for  any year before 1953, $6000 for the
 2    years 1953 to 1956, inclusive, and the actual annual  salary,
 3    as   salary   is  defined  in  this  Article,  for  any  year
 4    thereafter.
 5        To preserve rights existing on  December  31,  1959,  for
 6    participants  and  contributors  on  that  date  to  the fund
 7    created by the Court and Law  Department  Employees'  Annuity
 8    Act,  who  became  participants  in  the fund provided for on
 9    January 1, 1960, the maximum annual salary to  be  considered
10    for such persons for the years 1955 and 1956 is $7,500.
11        (c)  For  an  employee  receiving disability benefit, his
12    salary for annuity purposes under paragraphs (a) and  (b)  of
13    this   Section,   for   all  periods  of  disability  benefit
14    subsequent to the year 1956,  is  the  amount  on  which  his
15    disability benefit was based.
16        (d)  An  employee with 20 or more years of service, whose
17    entire  disability  benefit  credit  period  expires   before
18    attainment  of  age  55  while still disabled for service, is
19    entitled upon withdrawal to the larger  of  (1)  the  minimum
20    annuity  provided  above,  assuming  he  is  then age 55, and
21    reducing such annuity to its actuarial equivalent as  of  his
22    attained  age  on  such date or (2) the annuity provided from
23    his age and service and prior service annuity credits.
24        (e)  The minimum annuity provisions do not apply  to  any
25    former  municipal employee receiving an annuity from the fund
26    who re-enters service as  a  municipal  employee,  unless  he
27    renders at least 3 years of additional service after the date
28    of re-entry.
29        (f)  An  employee  in  service  on  July  1, 1947, or who
30    became a contributor after July 1, 1947 and before attainment
31    of age 70, who withdraws after age  65,  with  less  than  20
32    years  of  service  for whom the annuity has been fixed under
33    this Article shall, instead of the annuity so fixed,  receive
34    an annuity as follows:
 
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 1        Such amount as he could have received had the accumulated
 2    amounts  for  annuity  been  improved  with  interest  at the
 3    effective  rate  to  the  date  of  his  withdrawal,  or   to
 4    attainment  of age 70, whichever is earlier, and had the city
 5    contributed to such earlier date for age and service  annuity
 6    the  amount  that it would have contributed had he been under
 7    age 65, after the date his annuity was  fixed  in  accordance
 8    with  this  Article,  and  assuming his annuity were computed
 9    from such accumulations as of his age on such  earlier  date.
10    The  annuity  so  computed shall not exceed the annuity which
11    would be payable under the other provisions of  this  Section
12    if  the  employee  was  credited with 20 years of service and
13    would qualify for annuity thereunder.
14        (g)  Instead of the annuity provided in this Article,  an
15    employee  having  attained  age  65 with at least 15 years of
16    service who withdraws from service on or after July  1,  1971
17    and  whose  annuity  computed  under other provisions of this
18    Article  is  less  than  the  amount  provided   under   this
19    paragraph, is entitled to a minimum annuity for life equal to
20    1% of the highest average annual salary, as salary is defined
21    and  limited  in  this  Section  for  any 4 consecutive years
22    within the last 10 years of service for each year of service,
23    plus the sum of $25 for each year  of  service.  The  annuity
24    shall not exceed 60% of such highest average annual salary.
25        (g-1)  Instead  of  any other retirement annuity provided
26    in this Article, an employee who has at  least  10  years  of
27    service  and  withdraws  from  service on or after January 1,
28    1999 may elect to receive  a  retirement  annuity  for  life,
29    beginning no earlier than upon attainment of age 60, equal to
30    2.2% if withdrawal is before 60 days after the effective date
31    of  this  amendatory Act of the 92nd General Assembly or 2.4%
32    if withdrawal is 60 days after the  effective  date  of  this
33    amendatory  Act  of  the  92nd  General Assembly or later, of
34    final average salary for each year of service, subject  to  a
 
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 1    maximum  of  75%  of  final  average  salary if withdrawal is
 2    before 60 days after the effective date  of  this  amendatory
 3    Act  of the 92nd General Assembly, or 80% if withdrawal is 60
 4    days after the effective date of this amendatory Act  of  the
 5    92nd   General   Assembly   or  later.  For  the  purpose  of
 6    calculating this annuity, "final average  salary"  means  the
 7    highest  average annual salary for any 4 consecutive years in
 8    the last 10 years of service.
 9        (h)  The minimum annuities provided  under  this  Section
10    shall be paid in equal monthly installments.
11        (i)  The  amendatory  provisions  of  part (b) and (g) of
12    this Section shall be effective July 1, 1971 and apply in the
13    case of every qualifying employee  withdrawing  on  or  after
14    July 1, 1971.
15        (j)  The  amendatory provisions of this amendatory Act of
16    1985 (P.A. 84-23) relating to the discount of annuity because
17    of retirement prior to attainment  of  age  60,  and  to  the
18    retirement  formula,  for  those born before January 1, 1936,
19    shall apply only to qualifying employees  withdrawing  on  or
20    after July 18, 1985.
21        (k)  Beginning  on January 1, 1999, the minimum amount of
22    employee's annuity shall be $850 per month for life  for  the
23    following  classes  of  employees, without regard to the fact
24    that withdrawal occurred prior to the effective date of  this
25    amendatory Act of 1998:
26             (1)  any  employee  annuitant  alive and receiving a
27        life annuity on the effective date of this amendatory Act
28        of 1998, except a reciprocal annuity;
29             (2)  any employee annuitant alive  and  receiving  a
30        term annuity on the effective date of this amendatory Act
31        of 1998, except a reciprocal annuity;
32             (3)  any  employee  annuitant  alive and receiving a
33        reciprocal  annuity  on  the  effective  date   of   this
34        amendatory  Act of 1998, whose service in this fund is at
 
HB2099 Engrossed            -14-               LRB9207727LDpr
 1        least 5 years;
 2             (4)  any employee annuitant withdrawing after age 60
 3        on or after the effective date of this amendatory Act  of
 4        1998, with at least 10 years of service in this fund.
 5        The  increases  granted  under  items (1), (2) and (3) of
 6    this subsection (k) shall not be limited by any other Section
 7    of this Act.
 8    (Source: P.A. 90-32,  eff.  6-27-97;  90-511,  eff.  8-22-97;
 9    90-766, eff. 8-14-98.)

10        (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
11        Sec.  8-150.1.   Minimum annuities for widows.  The widow
12    (otherwise eligible for widow's annuity under other  Sections
13    of  this Article 8) of an employee hereinafter described, who
14    retires from service or dies while in the service  subsequent
15    to  the  effective date of this amendatory provision, and for
16    which widow the amount of widow's annuity and  widow's  prior
17    service  annuity  combined,  fixed or provided for such widow
18    under other provisions of  this  Article  is  less  than  the
19    amount  provided  in  this Section, shall, from and after the
20    date her otherwise provided annuity would begin, in  lieu  of
21    such  otherwise  provided  widow's  and widow's prior service
22    annuity, be entitled to the  following  indicated  amount  of
23    annuity:
24        (a)  The  widow of any employee who dies while in service
25    on or after the date on which he attains age 60 if the  death
26    occurs  before July 1, 1990, or on or after the date on which
27    he attains age 55 if the death occurs on  or  after  July  1,
28    1990,  with  at least 20 years of service, or on or after the
29    date on which he attains age 50 if the  death  occurs  on  or
30    after  the effective date of this amendatory Act of 1997 with
31    at least 30 years of service, shall be entitled to an annuity
32    equal to one-half of the amount of annuity which her deceased
33    husband would have been entitled to receive had he  withdrawn
 
HB2099 Engrossed            -15-               LRB9207727LDpr
 1    from the service on the day immediately preceding the date of
 2    his  death,  conditional  upon such widow having attained the
 3    age of 60 or more years on such  date  if  the  death  occurs
 4    before July 1, 1990, or age 55 or more if the death occurs on
 5    or  after July 1, 1990, or age 50 or more if the death occurs
 6    on or after January 1, 1998 and the employee  is  age  50  or
 7    over with at least 30 years of service or age 55 or over with
 8    at  least  25  years  of  service.    Except  as  provided in
 9    subsection (k), this  widow's  annuity  shall  not,  however,
10    exceed  the  sum  of  $500 a month if the employee's death in
11    service occurs before January 23, 1987.  The widow's  annuity
12    shall  not  be  limited  to  a  maximum  dollar amount if the
13    employee's death in service occurs on or  after  January  23,
14    1987.
15        If  the employee dies in service before July 1, 1990, and
16    if such widow of such described employee shall not be  60  or
17    more  years of age on such date of death, the amount provided
18    in the immediately preceding paragraph for a widow 60 or more
19    years of age, shall, in the case of such  younger  widow,  be
20    reduced by 0.25% for each month that her then attained age is
21    less than 60 years if the employee was born before January 1,
22    1936  or  dies  in service on or after January 1, 1988, or by
23    0.5% for each month that her then attained age is  less  than
24    60  years  if  the employee was born on or after July 1, 1936
25    and dies in service before January 1, 1988.
26        If the employee dies in service on or after July 1, 1990,
27    and if the widow of the employee has not attained age  55  on
28    or  before the employee's date of death, the amount otherwise
29    provided in this subsection (a) shall be reduced by 0.25% for
30    each month that her then attained age is less than 55  years;
31    except  that  if  the  employee  dies  in service on or after
32    January 1, 1998 at age 50 or over with at least 30  years  of
33    service  or  at  age  55  or  over  with at least 25 years of
34    service, there shall be no reduction due to the  widow's  age
 
HB2099 Engrossed            -16-               LRB9207727LDpr
 1    if  she  has attained age 50 on or before the employee's date
 2    of death, and if the widow has not  attained  age  50  on  or
 3    before  the  employee's  date  of  death the amount otherwise
 4    provided in this subsection (a) shall be reduced by 0.25% for
 5    each month that her then attained age is less than 50 years.
 6        (b)  The widow of any employee who dies subsequent to the
 7    date of his retirement on annuity, and who so retired  on  or
 8    after  the  date  on  which he attained the age of 60 or more
 9    years if retirement occurs before July  1,  1990,  or  on  or
10    after  the  date  on  which  he attained age 55 if retirement
11    occurs on or after July 1, 1990, with at least  20  years  of
12    service,  or on or after the date on which he attained age 50
13    if the retirement occurs on or after the  effective  date  of
14    this  amendatory  Act  of  1997  with  at  least  30 years of
15    service, shall be entitled to an annuity equal to one-half of
16    the amount of annuity which her deceased husband received  as
17    of  the  date  of his retirement on annuity, conditional upon
18    such widow having attained the age of 60 or more years on the
19    date of her husband's retirement  on  annuity  if  retirement
20    occurs  before  July 1, 1990, or age 55 or more if retirement
21    occurs on or after July 1, 1990, or age 50  or  more  if  the
22    retirement  on annuity occurs on or after January 1, 1998 and
23    the employee is age 50 or over with  at  least  30  years  of
24    service or age 55 or over with at least 25 years of service.
25    Except  as  provided  in subsection (k), this widow's annuity
26    shall not, however, exceed the sum of $500  a  month  if  the
27    employee's death occurs before January 23, 1987.  The widow's
28    annuity  shall  not  be limited to a maximum dollar amount if
29    the employee's death occurs on or  after  January  23,  1987,
30    regardless  of  the  date  of  retirement;  provided that, if
31    retirement was before  January  23,  1987,  the  employee  or
32    eligible spouse repays the excess spouse refund with interest
33    at  the effective rate from the date of refund to the date of
34    repayment.
 
HB2099 Engrossed            -17-               LRB9207727LDpr
 1        If the date of the employee's retirement  on  annuity  is
 2    before  July  1,  1990,  and  if such widow of such described
 3    employee shall not have attained such age of 60 or more years
 4    on such date of her  husband's  retirement  on  annuity,  the
 5    amount  provided in the immediately preceding paragraph for a
 6    widow 60 or more years of age on the date  of  her  husband's
 7    retirement  on  annuity,  shall,  in  the  case  of such then
 8    younger widow, be reduced by 0.25% for each  month  that  her
 9    then  attained age was less than 60 years if the employee was
10    born before January 1, 1936 or withdraws from  service on  or
11    after  January  1,  1988,  or by 0.5% for each month that her
12    then attained age is less than 60 years if the  employee  was
13    born  on  or after January 1, 1936 and withdraws from service
14    before January 1, 1988.
15        If the date of the employee's retirement on annuity is on
16    or after July 1, 1990, and if the widow of the  employee  has
17    not  attained age 55 by the date of the employee's retirement
18    on annuity, the amount otherwise provided in this  subsection
19    (b)  shall  be  reduced by 0.25% for each month that her then
20    attained age is less  than  55  years;  except  that  if  the
21    employee  retires  on  annuity on or after January 1, 1998 at
22    age 50 or over with at least 30 years of service or at age 55
23    or over with at least 25 years of service, there shall be  no
24    reduction  due  to the widow's age if she has attained age 50
25    on or before the employee's date of death, and if  the  widow
26    has  not  attained age 50 on or before the employee's date of
27    death the amount otherwise provided in  this  subsection  (b)
28    shall  be  reduced  by  0.25%  for  each  month that her then
29    attained age is less than 50 years.
30        (c)  The  foregoing  provisions   relating   to   minimum
31    annuities  for  widows  shall  not  apply to the widow of any
32    former municipal employee receiving an annuity from the  fund
33    on August 9, 1965 or on the effective date of this amendatory
34    provision,  who  re-enters  service  as a municipal employee,
 
HB2099 Engrossed            -18-               LRB9207727LDpr
 1    unless such employee renders at least 3 years  of  additional
 2    service after the date of re-entry.
 3        (d)  In computing the amount of annuity which the husband
 4    specified  in  the  foregoing  paragraphs (a) and (b) of this
 5    Section would have been entitled  to  receive,  or  received,
 6    such  amount shall be the annuity to which such husband would
 7    have been, or was entitled, before reduction in the amount of
 8    his annuity  for  the  purposes  of  the  voluntary  optional
 9    reversionary  annuity  provided  for  in  Sec.  8-139 of this
10    Article, if such option was elected.
11        (e)  (Blank).
12        (f)  (Blank).
13        (g)  The amendatory provisions of this amendatory Act  of
14    1985  relating  to annuity discount because of age for widows
15    of employees born before January 1, 1936, shall apply only to
16    qualifying  widows  of  employees  withdrawing  or  dying  in
17    service on or after July 18, 1985.
18        (h)  Beginning on January 1, 1999, the minimum amount  of
19    widow's  annuity  shall  be  $800  per month for life for the
20    following classes of widows, without regard to the fact  that
21    the  death  of  the  employee occurred prior to the effective
22    date of this amendatory Act of 1998:
23             (1)  any widow annuitant alive and receiving a  life
24        annuity  on  the effective date of this amendatory Act of
25        1998, except a reciprocal annuity;
26             (2)  any widow annuitant alive and receiving a  term
27        annuity  on  the effective date of this amendatory Act of
28        1998, except a reciprocal annuity;
29             (3)  any  widow  annuitant  alive  and  receiving  a
30        reciprocal  annuity  on  the  effective  date   of   this
31        amendatory  Act  of 1998, whose employee spouse's service
32        in this fund was at least 5 years;
33             (4)  the widow of an employee with at least 10 years
34        of service in this fund who dies after retirement, if the
 
HB2099 Engrossed            -19-               LRB9207727LDpr
 1        retirement occurred prior to the effective date  of  this
 2        amendatory Act of 1998;
 3             (5)  the widow of an employee with at least 10 years
 4        of  service  in  this  fund who dies after retirement, if
 5        withdrawal occurs on or after the effective date of  this
 6        amendatory Act of 1998;
 7             (6)  the  widow  of  an employee who dies in service
 8        with at least 5 years of service in  this  fund,  if  the
 9        death in service occurs on or after the effective date of
10        this amendatory Act of 1998.
11        The  increases  granted under items (1), (2), (3) and (4)
12    of this subsection (h) shall not  be  limited  by  any  other
13    Section of this Act.
14        (i)  The  widow  of  an  employee  who retired or died in
15    service on or after January 1, 1985 and before July 1,  1990,
16    at  age  55  or  older, and with at least 35 years of service
17    credit,  shall  be  entitled  to  have  her  widow's  annuity
18    increased, effective January 1, 1991, to an amount  equal  to
19    50%  of  the  retirement  annuity  that the deceased employee
20    received on the  date  of  retirement,  or  would  have  been
21    eligible  to  receive  if he had retired on the day preceding
22    the date of his death in service, provided that if the  widow
23    had  not  attained  age  60  by  the  date  of the employee's
24    retirement or death in service, the  amount  of  the  annuity
25    shall  be  reduced  by  0.25%  for  each  month that her then
26    attained  age  was  less  than  age  60  if  the   employee's
27    retirement  or  death in service occurred on or after January
28    1, 1988, or by 0.5%  for each month that her attained age  is
29    less  than  age  60  if the employee's retirement or death in
30    service occurred prior to January 1, 1988.  However, in cases
31    where a refund of excess contributions  for  widow's  annuity
32    has  been  paid by the Fund, the increase in benefit provided
33    by this subsection (i) shall be contingent upon repayment  of
34    the  refund  to  the Fund with interest at the effective rate
 
HB2099 Engrossed            -20-               LRB9207727LDpr
 1    from the date of refund to the date of payment.
 2        (j)  If a deceased employee  is  receiving  a  retirement
 3    annuity  at  the  time  of  death and that death occurs on or
 4    after June 27, 1997, the widow may elect to receive, in  lieu
 5    of  any other annuity provided under this Article, 50% of the
 6    deceased employee's retirement annuity at the time  of  death
 7    reduced  by  0.25% for each month that the widow's age on the
 8    date of death is less than 55; except that  if  the  employee
 9    dies on or after January 1, 1998 and withdrew from service on
10    or  after  June  27,  1997 at age 50 or over with at least 30
11    years of service or at age 55 or over with at least 25  years
12    of  service,  there  shall be no reduction due to the widow's
13    age if she has attained age 50 on or  before  the  employee's
14    date of death, and if the widow has not attained age 50 on or
15    before  the  employee's  date  of  death the amount otherwise
16    provided in this subsection (j) shall be reduced by 0.25% for
17    each month that her age on the date of death is less than  50
18    years.   However,   in   cases   where  a  refund  of  excess
19    contributions for widow's annuity has been paid by the  Fund,
20    the  benefit  provided  by  this subsection (j) is contingent
21    upon repayment of the refund to the Fund with interest at the
22    effective rate from  the  date  of  refund  to  the  date  of
23    payment.
24        (k)  For  widows of employees who died before January 23,
25    1987 after retirement on annuity or in service,  the  maximum
26    dollar  amount  limitation  on widow's annuity shall cease to
27    apply, beginning with the first  annuity  payment  after  the
28    effective date of this amendatory Act of 1997; except that if
29    a refund of excess contributions for widow's annuity has been
30    paid by the Fund, the increase resulting from this subsection
31    (k)  shall not begin before the refund has been repaid to the
32    Fund, together with interest at the effective rate  from  the
33    date of the refund to the date of repayment.
34        (l)  In  lieu  of  any  other  annuity  provided  in this
 
HB2099 Engrossed            -21-               LRB9207727LDpr
 1    Article, an eligible  spouse  of  an  employee  who  dies  in
 2    service  at  least  60  days after the effective date of this
 3    amendatory Act of the 92nd General Assembly with at least  10
 4    years  of  service  shall be entitled to an annuity of 50% of
 5    the minimum formula annuity earned and accrued to the  credit
 6    of  the  employee  at the date of death.  For the purposes of
 7    this subsection,  the  minimum  formula  annuity  earned  and
 8    accrued  to  the credit of the employee is equal to 2.40% for
 9    each year of service of the highest average annual salary for
10    any 4 consecutive years within the last 10 years  of  service
11    immediately  preceding  the date of death, up to a maximum of
12    80% of the highest average annual salary.  This annuity shall
13    not be reduced due to the age of the employee or spouse.   In
14    addition  to  any  other  eligibility requirements under this
15    Article, the spouse is eligible for this annuity only if  the
16    marriage was in effect for 10 full years or more.
17    (Source:  P.A.  90-32,  eff.  6-27-97;  90-511, eff. 8-22-97;
18    90-766, eff. 8-14-98.)

19        (40 ILCS 5/8-158) (from Ch. 108 1/2, par. 8-158)
20        Sec.  8-158.  Child's  annuity.   A  child's  annuity  is
21    payable monthly after the death of  an employee parent to the
22    child until the child's  attainment  of  age  18,  under  the
23    following  conditions,  if  the  child  was  born  before the
24    employee  attained  age  65,  and  before  he  withdrew  from
25    service:
26             (a)  upon death resulting from  injury  incurred  in
27        the performance of an act of duty;
28             (b)  upon death in service from any cause other than
29        injury  incurred in the performance of an act of duty, if
30        the employee has at least 4 years of  service  after  the
31        date  of  his original entry into service, and at least 2
32        years after the date of his latest re-entry;
33             (b) (c)  upon death of  an  employee  who  withdraws
 
HB2099 Engrossed            -22-               LRB9207727LDpr
 1        from  service after age 55 (or after age 50 with at least
 2        30 years of service if withdrawal is on or after June 27,
 3        1997) and  who  has  entered  upon  or  is  eligible  for
 4        annuity.
 5    Payment shall be made as provided in Section 8-125.
 6    (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)

 7        (40 ILCS 5/8-161) (from Ch. 108 1/2, par. 8-161)
 8        Sec.  8-161.  Ordinary  disability  benefit.  An employee
 9    while under age 65 and prior to January  1,  1979,  or  while
10    under  age 70 and after January 1, 1979, who becomes disabled
11    after the effective date as the result  of  any  cause  other
12    than  injury  incurred  in  the performance of duty, shall be
13    entitled  to  ordinary   disability   benefit   during   such
14    disability, after the first 30 days thereof.
15        The  first payment shall be made not later than one month
16    after the benefit is  granted  and  each  subsequent  payment
17    shall  be  made  not  later  than  one  month  after the last
18    preceding payment.
19        The disability benefit prescribed herein shall cease when
20    the  first  of  the  following  dates  shall  occur  and  the
21    employee, if still disabled, shall thereafter be entitled  to
22    such annuity as is otherwise provided in this Article:
23        (a)  the date disability ceases.
24        (b)  the  date  the  disabled employee attains age 65 for
25    disability commencing prior to January 1, 1979.
26        (c)  the date the disabled employee attains  age  65  for
27    disability  commencing  prior  to attainment of age 60 in the
28    service and after January 1, 1979.
29        (d)  the date the disabled employee attains the age of 70
30    for disability commencing after attainment of age 60  in  the
31    service and after January 1, 1979.
32        (e)  the date the payments of the benefit shall exceed in
33    the  aggregate,  throughout  the employee's service, a period
 
HB2099 Engrossed            -23-               LRB9207727LDpr
 1    equal to 1/4 of the total service rendered prior to the  date
 2    of  disability  but  in  no  event  more  than  5  years.  In
 3    computing such total service  any  period  during  which  the
 4    employee   received  ordinary  disability  benefit  shall  be
 5    excluded.
 6        Any  employee  whose  ordinary  disability  benefit   was
 7    terminated  after January 1, 1979 by reason of his attainment
 8    of age 65 and who continues disabled after age 65  may  elect
 9    before  July  1, 1986 to have such benefits resumed beginning
10    at  the  time  of  such  termination  and  continuing   until
11    termination is required under this Section as amended by this
12    amendatory  Act  of 1985.  The amount payable to any employee
13    for such resumed benefit for any period shall be  reduced  by
14    the  amount  of  any retirement annuity paid to such employee
15    under this Article for the same period  of  time  or  by  any
16    refund paid in lieu of annuity.
17        Ordinary   disability   benefit   shall  be  50%  of  the
18    employee's salary at the date of disability.
19        For ordinary disability benefits paid before  January  1,
20    2001,  before  any  payment,  an amount equal to less the sum
21    ordinarily deducted from salary for all annuity purposes  for
22    such period for which the ordinary disability benefit is made
23    shall  be  deducted  from  such  payment  and credited to the
24    employee as a deduction from salary  for  that  period.   The
25    sums  so deducted shall be credited to the employee and shall
26    be regarded, for annuity and refund purposes,  as  an  amount
27    contributed by him.
28        For ordinary disability benefits paid on or after January
29    1,  2001,  the  fund  shall  credit sums equal to the amounts
30    ordinarily contributed by an employee  for  annuity  purposes
31    for  any  period  during which the employee receives ordinary
32    disability, and  those  sums  shall  be  deemed  for  annuity
33    purposes and purposes of Section 8-173 as amounts contributed
34    by the employee.  These amounts credited for annuity purposes
 
HB2099 Engrossed            -24-               LRB9207727LDpr
 1    shall not be credited for refund purposes.
 2        If  a participating employee is eligible for a disability
 3    benefit under the federal Social Security Act, the amount  of
 4    ordinary  disability  benefit under this Section attributable
 5    to employment with  the  Chicago  Housing  Authority  or  the
 6    Public  Building Commission of the city shall be reduced, but
 7    not to less than $10  per  month,  by  the  amount  that  the
 8    employee would be eligible to receive as a disability benefit
 9    under  the  federal  Social Security Act, whether or not that
10    federal benefit is based on service  as  a  covered  employee
11    under  this  Article.  The reduction shall be effective as of
12    the month the employee is eligible for  the  social  security
13    disability  benefit.   The  Board  may  make  this  reduction
14    pending  determination of eligibility for the social security
15    disability benefit, if it  appears  to  the  Board  that  the
16    employee  may be eligible, and make an appropriate adjustment
17    if  necessary  after  eligibility  for  the  social  security
18    disability benefit is determined.  If the  employee's  social
19    security  disability benefit is reduced or terminated because
20    of a refusal to  accept  rehabilitation  services  under  the
21    federal  Rehabilitation  Act  of  1973  or the federal Social
22    Security Act or because the employee is receiving a  workers'
23    compensation  benefit,  the ordinary disability benefit under
24    this Section  shall  be  reduced  as  if  the  employee  were
25    receiving the full social security disability benefit.
26        The  amount  of  ordinary disability benefit shall not be
27    reduced by reason of any increase in  the  amount  of  social
28    security disability benefit that takes effect after the month
29    of  the  initial  reduction under this Section, other than an
30    increase resulting from a correction in the  employee's  wage
31    records.
32    (Source: P.A. 84-23.)

33        (40 ILCS 5/8-167) (from Ch. 108 1/2, par. 8-167)
 
HB2099 Engrossed            -25-               LRB9207727LDpr
 1        Sec. 8-167. Restoration of rights.
 2        (1)  An  employee  who  has  withdrawn  as  a  refund the
 3    amounts credited for  annuity  purposes,  and  who  re-enters
 4    service  and  serves  for periods comprising at least 2 years
 5    after the date of the last refund paid to him, shall have his
 6    annuity rights restored  by  compliance  with  the  following
 7    provisions:
 8             (a)  after such 2 year period, he shall repay to the
 9        Fund,  while  in  service,  in full all refunds received,
10        together with interest at the  effective  rate  from  the
11        dates of refund to the date of repayment; or
12             (b)  if  payment  is  not  made in a single sum, the
13        repayment may be made in installments by deductions  from
14        salary  or  otherwise  in  such amounts and manner as the
15        board, by rule,  may  prescribe,  with  interest  at  the
16        effective rate accruing on unpaid balances; or
17             (c)  if  the employee withdraws from service or dies
18        in service before full repayment  is  made,  such  rights
19        shall   not   be  restored,  but  the  amount,  including
20        interest, repaid by him, but without any further interest
21        otherwise normally credited, shall be refunded to him  or
22        to  his  widow,  or  in the manner provided by the refund
23        provisions of this Article if no widow survives.
24        (2)  A person who is employed full-time by a local  labor
25    organization  that  represents  municipal  employees  and has
26    withdrawn as  a  refund  the  amounts  credited  for  annuity
27    purposes may elect to have his or her annuity rights restored
28    by  repaying  to  the  Fund  in  full  all  refunds received,
29    together with interest at the effective rate from the date of
30    the refund to the date of repayment.  Repayment of  a  refund
31    under  this  subsection  (2)  does  not  require  a return to
32    service,  and  this  subsection  applies  without  regard  to
33    whether the person is in service on or  after  the  effective
34    date of this amendatory Act of the 92nd General Assembly.
 
HB2099 Engrossed            -26-               LRB9207727LDpr
 1        (3)  This Section applies also to any person who received
 2    a  refund  from  any annuity and benefit fund or pension fund
 3    which was merged into  and  superseded  by  the  annuity  and
 4    benefit  fund  provided  for  in  this  Article  on  or after
 5    December 31, 1959.  Upon repayment such person shall  receive
 6    credit  for  all  annuity purposes in the annuity and benefit
 7    fund provided for in this Article for the period  of  service
 8    covered by such refund.
 9        (4)  The  amount  of  refund  repayment  is considered as
10    salary deductions for age and  service  annuity  and  widow's
11    annuity purposes in the case of a male person.  In the latter
12    case  the  amount  of  refund  repayment  is allocated in the
13    applicable proportion for age and service and widow's annuity
14    purposes.  Such person  shall  also  be  credited  with  city
15    contributions  for  age  and  service  annuity,  and  widow's
16    annuity  if  a  male employee, in the amount which would have
17    been  credited  and  accrued  if  such  person  had  been   a
18    participant  in  and  contributor  to the annuity and benefit
19    fund provided for in this Article during the period  of  such
20    service on the basis of his salary during such period.
21    (Source: P.A. 81-1536.)

22        (40 ILCS 5/8-168) (from Ch. 108 1/2, par. 8-168)
23        Sec.  8-168.  Refunds  - Withdrawal before age 55 or with
24    less than 10 years of service.
25        1.  An employee, without regard to length of service, who
26    withdraws before age 55, and any employee with less  than  10
27    years  of  service  who  withdraws  before  age  60, shall be
28    entitled to a refund of the accumulated sums to  his  credit,
29    as of the date of withdrawal, for age and service annuity and
30    widow's  annuity  from  amounts contributed by him, including
31    interest credited and including amounts contributed  for  him
32    for  age and service and widow's annuity purposes by the city
33    while receiving duty disability benefits; provided that  such
 
HB2099 Engrossed            -27-               LRB9207727LDpr
 1    amounts  contributed  by  the  city  after December 31, 1981,
 2    while the employee is receiving duty disability benefits, and
 3    amounts credited to the employee for annuity purposes by  the
 4    fund after December 31, 2000, while the employee is receiving
 5    ordinary  disability  benefits,  shall  not  be  credited for
 6    refund purposes. If he is a present employee he shall also be
 7    entitled to a refund  of  the  accumulations  from  any  sums
 8    contributed by him, and applied to any municipal pension fund
 9    superseded by this fund.
10        2.  Upon  receipt  of the refund, the employee surrenders
11    and forfeits all rights to any annuity or other benefits, for
12    himself and for any other persons who  might  have  benefited
13    through him; provided that he may have such period of service
14    counted in computing the term of his service if he becomes an
15    employee   before   age  65,  excepting  as  limited  by  the
16    provisions of paragraph (a) (3)  of  Section  8-232  of  this
17    Article  relating  to  the  basis  of  computing  the term of
18    service.
19        3.  Any such employee shall retain such right to a refund
20    of such amounts  when  he  shall  apply  for  same  until  he
21    re-enters  the  service  or until the amount of annuity shall
22    have been fixed as provided in this Article.  Thereafter,  no
23    such right shall exist in the case of any such employee.
24        4.  Any  such municipal employee who shall have served 10
25    or  more  years  and  who  shall  not  withdraw  the  amounts
26    aforesaid to which he shall have a right of refund shall have
27    a right to annuity as stated in this Article.
28        5.  Any such municipal employee  who  shall  have  served
29    less  than 10 years and who shall not withdraw the amounts to
30    which he shall have a right to refund shall have a  right  to
31    have all such amounts and all other amounts to his credit for
32    annuity  purposes  on  date  of  his  withdrawal from service
33    retained to his credit and  improved  by  interest  while  he
34    shall  be  out of the service at the rate of 3 1/2% or 3% per
 
HB2099 Engrossed            -28-               LRB9207727LDpr
 1    annum (whichever rate shall apply  under  the  provisions  of
 2    Section  8-155 of this Article) and used for annuity purposes
 3    for his benefit and the benefit of any person  who  may  have
 4    any  right  to  annuity  through  him because of his service,
 5    according to the provisions of this Article in the event that
 6    he shall subsequently re-enter the service and  complete  the
 7    number  of  years  of  service necessary to attain a right to
 8    annuity; but such sum shall be improved by  interest  to  his
 9    credit  while  he  shall  be out of the service only until he
10    shall have become 65 years of age.
11    (Source: P.A. 82-283.)

12        (40 ILCS 5/8-171) (from Ch. 108 1/2, par. 8-171)
13        Sec. 8-171. Refund in lieu of annuity.   In  lieu  of  an
14    annuity,  an  employee  who withdraws and whose annuity would
15    amount to less than $800 a  month  for  life,  may  elect  to
16    receive a refund of his accumulated contributions for annuity
17    purposes, based on the amounts contributed by him.
18        The  widow of any employee, eligible for annuity upon the
19    death of her husband, whose widow's annuity would  amount  to
20    less  than  $800  a  month  for life, may, in lieu of widow's
21    annuity,  elect  to  receive  a  refund  of  the  accumulated
22    contributions for annuity  purposes,  based  on  the  amounts
23    contributed  by her deceased employee husband, but reduced by
24    any amounts theretofore paid to him in the form of an annuity
25    or refund out of such accumulated contributions.
26        Accumulated  contributions  shall  mean  the  amounts   -
27    including  the interest credited thereon - contributed by the
28    employee for age and service and widow's annuity to the  date
29    of his withdrawal or death, whichever first occurs, including
30    any  amounts  contributed  for him as salary deductions while
31    receiving duty disability benefits,  and,  if  not  otherwise
32    included,  any accumulations from sums contributed by him and
33    applied to any pension fund superseded by this fund; provided
 
HB2099 Engrossed            -29-               LRB9207727LDpr
 1    that such amounts contributed by the city after December  31,
 2    1981 while the employee is receiving duty disability benefits
 3    and  amounts credited to the employee for annuity purposes by
 4    the fund after  December  31,  2000  while  the  employee  is
 5    receiving ordinary disability shall not be included.
 6        The acceptance of such refund in lieu of widow's annuity,
 7    on the part of a widow, shall not deprive a child or children
 8    of  the right to receive a child's annuity as provided for in
 9    Sections 8-158 and 8-159 of this Article, and  neither  shall
10    the  payment  of a child's annuity in the case of such refund
11    to a widow reduce the amount herein set forth  as  refundable
12    to such widow electing a refund in lieu of widow's annuity.
13    (Source: P.A. 91-887, eff. 7-6-00.)

14        (40 ILCS 5/8-227) (from Ch. 108 1/2, par. 8-227)
15        Sec.  8-227.  Service  as  police officer, firefighter or
16    teacher.
17        (a)  Service rendered by an employee as a police  officer
18    and  member of the regularly constituted police department of
19    the city, or as a firefighter and regular member of the  paid
20    fire  department  of  the city, or as a teacher in the public
21    school system in the city shall be counted, for the  purposes
22    of  this  Article,  as service rendered as an employee of the
23    city.  Salary received for any such service shall be treated,
24    for the purposes of this Article, as salary received for  the
25    performance of duty as an employee.
26        (b)  Subsection  (a)  applies  The  foregoing  provisions
27    shall apply to service rendered after the effective date only
28    if  the  employee  pays  to the Fund, prior to his separation
29    from service, an amount equal to what would have  accumulated
30    in  his  or  her  account  from salary deductions as employee
31    contributions, including interest at the effective  rate,  if
32    such  contributions  had  been  made  for age and service and
33    spouse's annuity during all of such service;  provided,  that
 
HB2099 Engrossed            -30-               LRB9207727LDpr
 1    no  service  shall  be  counted  or payments received for any
 2    period of service for which the employee retains or  has  not
 3    forfeited  his or her rights to credit for the same period of
 4    service in another annuity and benefit fund, or pension fund,
 5    in operation in the city  for  the  benefit  of  such  police
 6    officers,  firefighters, or teachers.  The amount transferred
 7    to the Fund under item (1) of Section 5-233.1, if any,  shall
 8    be  credited  against  the  contributions required under this
 9    subsection.
10    (Source: P.A. 81-1536.)

11        (40 ILCS 5/8-230.7)
12        Sec.  8-230.7.   Service  rendered  to  Public   Building
13    Commission.
14        (a)  An   employee  or  former  employee  of  the  Public
15    Building Commission of the city who  has  established  credit
16    under  the  Fund  with regard to service to an employer other
17    than  the  Public  Building  Commission  of  the   city   may
18    contribute  to the Fund and receive credit for all periods of
19    full-time employment with by the Public  Building  Commission
20    created  by  the  employing  city  occurring prior to 60 days
21    after the effective date of this amendatory Act,  except  for
22    those  periods  for  which  the  employee  retains a right to
23    credit in another public pension fund  or  retirement  system
24    established  under  this  Code.  Such service credit shall be
25    paid for and granted on the same basis  and  under  the  same
26    conditions  as  are  applicable  in the case of employees who
27    make payment for past service under Section  8-230,  provided
28    that  the  person  must  also  pay the corresponding employer
29    contributions, and further provided  that  the  contributions
30    and  service  credit  are  permitted under Section 415 of the
31    Internal Revenue Code of 1986.  The  contributions  shall  be
32    based  on the salary actually received by the person from the
33    Commission for that employment.
 
HB2099 Engrossed            -31-               LRB9207727LDpr
 1        (b)  A   person   establishing   service   credit   under
 2    subsection (a) or electing to participate in the  Fund  under
 3    subsection  (d)  may,  at  the  same  time, reinstate service
 4    credit that was terminated through receipt  of  a  refund  by
 5    repaying  to  the Fund the amount of the refund plus interest
 6    at the effective rate from the date of the refund to the date
 7    of repayment.
 8        (c)  An eligible  person  may  establish  service  credit
 9    under  subsection  (a)  and  reinstate  service  credit under
10    subsection (b) without returning  to  active  service  as  an
11    employee  under  this Article, but the required contributions
12    and repayment must be received by the Fund before the  person
13    begins to receive a retirement annuity under this Article.
14        (d)  Within  60 days after beginning full-time employment
15    with the Public Building Commission of the city (or within 60
16    days after the effective date of this amendatory Act  of  the
17    92nd  General  Assembly, whichever is later), a person having
18    service credits in this Fund or reinstating  service  credits
19    under  subsection  (b)  may elect to participate in this Fund
20    with respect to that Public Building  Commission  employment.
21    An  employee  who  participates  in this Fund with respect to
22    Public Building Commission employment shall not, with respect
23    to the same period of employment, participate  in  any  other
24    pension  plan  for  employees  of  the  Commission  for which
25    contributions are made by the Commission,  except  that  this
26    provision  shall not prevent an employee from making elective
27    contributions to a plan of deferred compensation during  that
28    period.  An election under this subsection (d), once made, is
29    irrevocable.
30        Participation  under this subsection shall be on the same
31    basis and under the same conditions as are applicable in  the
32    case  of  participating  employees  of  the  city.   Employee
33    contributions  shall be based on the salary actually received
34    by the employee for that employment.  Employer  contributions
 
HB2099 Engrossed            -32-               LRB9207727LDpr
 1    shall  be  paid by the Public Building Commission rather than
 2    the city, at a rate to be determined by the Retirement Board.
 3    (Source: P.A. 90-766, eff. 8-14-98.)

 4        (40 ILCS 5/8-230.9 new)
 5        Sec.  8-230.9.   Service  rendered  to  Chicago   Housing
 6    Authority.
 7        (a)  Within  60 days after beginning full-time employment
 8    with the Chicago Housing Authority (or within 60  days  after
 9    the effective date of this amendatory Act of the 92nd General
10    Assembly,  whichever  is  later),  a  person  having  service
11    credits  in  this  Fund  or reinstating service credits under
12    subsection (c) may elect to participate  in  this  Fund  with
13    respect  to  that  Chicago  Housing Authority employment.  An
14    employee who  participates  in  this  Fund  with  respect  to
15    Chicago  Housing Authority employment shall not, with respect
16    to the same period of employment, participate  in  any  other
17    pension  plan  for  employees  of  the  Authority  for  which
18    contributions  are  made  by  the Authority, except that this
19    provision shall not prevent an employee from making  elective
20    contributions  to a plan of deferred compensation during that
21    period.  An election under this subsection (a), once made, is
22    irrevocable.
23        Participation under this subsection shall be on the  same
24    basis  and under the same conditions as are applicable in the
25    case  of  participating  employees  of  the  city.   Employee
26    contributions shall be based on the salary actually  received
27    by  the employee for that employment.  Employer contributions
28    shall be paid by the Chicago Housing  Authority  rather  than
29    the city, at a rate to be determined by the Retirement Board.
30        (b)  An  employee  or  former  employee  of  the  Chicago
31    Housing  Authority  who has established credit under the Fund
32    with regard to service to an employer other than the  Chicago
33    Housing  Authority  may  contribute  to  the Fund and receive
 
HB2099 Engrossed            -33-               LRB9207727LDpr
 1    credit for all  periods  of  full-time  employment  with  the
 2    Chicago  Housing  Authority  occurring prior to 60 days after
 3    the effective date of this amendatory Act, except  for  those
 4    periods  for  which the employee retains a right to credit in
 5    another public pension fund or retirement system  established
 6    under  this  Code.  Such service credit shall be paid for and
 7    granted on the same basis and under the  same  conditions  as
 8    are  applicable in the case of employees who make payment for
 9    past service under Section 8-230, provided  that  the  person
10    must  also  pay the corresponding employer contributions, and
11    further provided that the contributions  and  service  credit
12    are  permitted under Section 415 of the Internal Revenue Code
13    of 1986.  The contributions shall  be  based  on  the  salary
14    actually  received  by the person from the Authority for that
15    employment.
16        (c)  A   person   establishing   service   credit   under
17    subsection (b) or electing to participate in the  Fund  under
18    subsection  (a)  may,  at  the  same  time, reinstate service
19    credit that was terminated through receipt  of  a  refund  by
20    repaying  to  the Fund the amount of the refund plus interest
21    at the effective rate from the date of the refund to the date
22    of repayment.
23        (d)  An eligible  person  may  establish  service  credit
24    under  subsection  (b)  and  reinstate  service  credit under
25    subsection (c) without returning  to  active  service  as  an
26    employee  under  this Article, but the required contributions
27    and repayment must be received by the Fund before the  person
28    begins to receive a retirement annuity under this Article.

29        (40 ILCS 5/8-230.10 new)
30        Sec.  8-230.10.   Service  rendered to IHDA.  An employee
31    with at least 10 years of creditable service in the Fund  may
32    establish  service  credit  for  up  to  7 years of full-time
33    employment by the Illinois Housing Development Authority  for
 
HB2099 Engrossed            -34-               LRB9207727LDpr
 1    which  the  employee  does  not have credit in another public
 2    pension fund or retirement system.
 3        To establish  service  credit  under  this  Section,  the
 4    employee  must  apply  to the Fund in writing by July 1, 2002
 5    and pay to the Fund, at any time before beginning to  receive
 6    a  retirement  annuity  under  this  Article, an amount to be
 7    determined  by  the  Fund,   consisting   of   (i)   employee
 8    contributions  based  on  the salary actually received by the
 9    person from the Illinois Housing  Development  Authority  for
10    that employment and the contribution rates then in effect for
11    employees  of  the  Fund,  (ii)  the  corresponding  employer
12    contributions,  and  (iii) regular interest on the amounts in
13    items (i) and (ii) from the date of the service to  the  date
14    of payment.

15        (40 ILCS 5/8-243.2) (from Ch. 108 1/2, par. 8-243.2)
16        Sec. 8-243.2.  Alternative annuity for city officers.
17        (a)  For  the  purposes  of  this  Section  and  Sections
18    8-243.1 and 8-243.3, "city officer" means the city clerk, the
19    city treasurer, or an alderman of the city elected by vote of
20    the  people, while serving in that capacity or as provided in
21    subsection (f), who has elected to participate in the Fund.
22        (b)  Any elected city  officer,  while  serving  in  that
23    capacity  or  as  provided  in  subsection  (f), may elect to
24    establish alternative credits for an alternative  annuity  by
25    electing    in   writing   to    make   additional   optional
26    contributions  in  accordance  with  this  Section  and   the
27    procedures  established  by  the  board.   Such  elected city
28    officer  may  discontinue  making  the  additional   optional
29    contributions  by notifying the Fund in writing in accordance
30    with this Section and procedures established by the board.
31        Additional optional  contributions  for  the  alternative
32    annuity shall be as follows:
33             (1)  For  service  after  the  option is elected, an
 
HB2099 Engrossed            -35-               LRB9207727LDpr
 1        additional  contribution  of  3%  of  salary   shall   be
 2        contributed  to  the Fund on the same basis and under the
 3        same conditions as contributions required under  Sections
 4        8-174 and 8-182.
 5             (2)  For  service  before  the option is elected, an
 6        additional contribution of  3%  of  the  salary  for  the
 7        applicable  period  of  service,  plus  interest  at  the
 8        effective  rate  from  the date of service to the date of
 9        payment.  All payments for past service must be  paid  in
10        full  before  credit  is  given.   No additional optional
11        contributions may be made for any period of  service  for
12        which  credit has been previously forfeited by acceptance
13        of a refund, unless the refund is  repaid  in  full  with
14        interest at the effective rate from the date of refund to
15        the date of repayment.
16        (c)  In  lieu of the retirement annuity otherwise payable
17    under this Article, any city officer elected by vote  of  the
18    people  who  (1)  has  elected to participate in the Fund and
19    make additional optional  contributions  in  accordance  with
20    this Section, and (2) has attained age 55 60 with at least 10
21    years  of  service  credit, or has attained age 60 65 with at
22    least 8 years of  service  credit,  may  elect  to  have  his
23    retirement   annuity   computed   as   follows:   3%  of  the
24    participant's salary at the time of  termination  of  service
25    for  each  of the first 8 years of service credit, plus 4% of
26    such salary for each of the next 4 years of  service  credit,
27    plus  5%  of  such  salary for each year of service credit in
28    excess of 12 years, subject to  a  maximum  of  80%  of  such
29    salary.   To  the  extent  such elected city officer has made
30    additional optional contributions  with  respect  to  only  a
31    portion  of  his  years  of  service  credit,  his retirement
32    annuity will first be  determined  in  accordance  with  this
33    Section  to the extent such additional optional contributions
34    were made, and then in accordance with the remaining Sections
 
HB2099 Engrossed            -36-               LRB9207727LDpr
 1    of this Article to the extent of years of service credit with
 2    respect to which additional optional contributions  were  not
 3    made.
 4        (d)  In lieu of the disability benefits otherwise payable
 5    under  this  Article, any city officer elected by vote of the
 6    people who (1) has elected to participate in  the  Fund,  and
 7    (2)  has  become permanently disabled and as a consequence is
 8    unable to perform the duties  of  his  office,  and  (3)  was
 9    making optional contributions in accordance with this Section
10    at the time the disability was incurred, may elect to receive
11    a  disability  annuity  calculated  in  accordance  with  the
12    formula   in  subsection  (c).   For  the  purposes  of  this
13    subsection, such elected city  officer  shall  be  considered
14    permanently disabled only if:  (i) disability occurs while in
15    service as an elected city officer and is of such a nature as
16    to  prevent  him from reasonably performing the duties of his
17    office at the time; and (ii) the board has received a written
18    certification by at least 2 licensed physicians appointed  by
19    it  stating  that  such  officer  is  disabled  and  that the
20    disability is likely to be permanent.
21        (e)  Refunds of additional optional  contributions  shall
22    be  made  on  the same basis and under the same conditions as
23    provided under Sections  8-168,  8-170  and  8-171.  Interest
24    shall be credited at the effective rate on the same basis and
25    under   the  same  conditions  as  for  other  contributions.
26    Optional contributions shall be accounted for in  a  separate
27    Elected City Officer Optional Contribution Reserve.  Optional
28    contributions  under  this  Section  shall be included in the
29    amount of employee contributions used to compute the tax levy
30    under Section 8-173.
31        (f)  The  effective  date  of  this  plan   of   optional
32    alternative benefits and contributions shall be July 1, 1990,
33    or  the  date  upon  which approval is received from the U.S.
34    Internal Revenue Service, whichever is later.
 
HB2099 Engrossed            -37-               LRB9207727LDpr
 1        The   plan   of   optional   alternative   benefits   and
 2    contributions shall not  be  available  to  any  former  city
 3    officer or employee receiving an annuity from the Fund on the
 4    effective date of the plan, unless he re-enters service as an
 5    elected  city  officer  and  renders  at  least  3  years  of
 6    additional  service  after  the date of re-entry.  However, a
 7    person who holds office as a city officer  on  June  1,  1995
 8    April  30,  1991  may  elect  to  participate in the plan, to
 9    transfer credits into the Fund from other  Articles  of  this
10    Code,  and  to  make  the  contributions  required  for prior
11    service, until 30 days  after  the  effective  date  of  this
12    amendatory  Act  of  the 92nd General Assembly the plan takes
13    effect, notwithstanding the ending  of  his  term  of  office
14    prior to that effective date; in the event that the person is
15    already  receiving  an  annuity  from  this Fund or any other
16    Article of this Code at the time of making this election, the
17    annuity  shall  be  recalculated  to  include  any   increase
18    resulting  from participation in the plan, with such increase
19    taking effect on the effective date of the election plan.
20    (Source: P.A. 86-1488; 87-794.)

21        (40 ILCS 5/11-125.8)
22        Sec. 11-125.8. Service as police officer, firefighter, or
23    teacher.
24        (a) Service rendered by an employee as a  police  officer
25    and  member of the regularly constituted police department of
26    the city, or as a firefighter and regular member of the  paid
27    fire  department  of  the city, or as a teacher in the public
28    school system in the city shall be counted, for the  purposes
29    of  this  Article,  as service rendered as an employee of the
30    city.  Salary received for any such service shall be treated,
31    for the purposes of this Article, as salary received for  the
32    performance of duty as an employee.
33        (b)  Credit shall be granted under subsection (a) only if
 
HB2099 Engrossed            -38-               LRB9207727LDpr
 1    (1) the employee pays  to  the  Fund  prior  to  his  or  her
 2    separation  from  service  an  amount  equal  to the employee
 3    contributions that would have been payable for that  service,
 4    based  on  the salary actually received, plus interest at the
 5    effective rate, and  (2)  the  employee  has  terminated  any
 6    credit  for  that  service  earned  in  any other annuity and
 7    benefit fund or pension fund in operation in the city for the
 8    benefit of police officers, firefighters, or  teachers.   The
 9    amount  transferred  to  the  Fund  under item (1) of Section
10    5-233.1, if any, shall be credited against the  contributions
11    required under this subsection.
12    (Source: P.A. 90-31, eff. 6-27-97.)

13        (40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
14        Sec. 11-134.  Minimum annuities.
15        (a)  An  employee  whose  withdrawal occurs after July 1,
16    1957 at age 60 or over, with 20 or more years of service, (as
17    service is defined or computed in Section 11-216),  for  whom
18    the  age  and  service  and prior service annuity combined is
19    less than the amount stated in this Section, shall, from  and
20    after  the  date  of  withdrawal,  in  lieu  of all annuities
21    otherwise provided in this Article, be entitled to receive an
22    annuity for life of an amount equal to 1 2/3% for  each  year
23    of  service,  of  the highest average annual salary for any 5
24    consecutive  years  within  the  last  10  years  of  service
25    immediately preceding the date of withdrawal; provided,  that
26    in the case of any employee who withdraws on or after July 1,
27    1971,  such  employee age 60 or over with 20 or more years of
28    service, shall be entitled to instead receive an annuity  for
29    life  equal  to  1.67%  for  each  of  the  first 10 years of
30    service; 1.90% for each of the  next  10  years  of  service;
31    2.10%  for  each  year  of  service  in  excess of 20 but not
32    exceeding 30; and 2.30% for each year of service in excess of
33    30, based on the highest average  annual  salary  for  any  4
 
HB2099 Engrossed            -39-               LRB9207727LDpr
 1    consecutive  years  within  the  last  10  years  of  service
 2    immediately preceding the date of withdrawal.
 3        An  employee  who withdraws after July 1, 1957 and before
 4    January 1, 1988, with 20 or more years of service, before age
 5    60, shall be entitled to an annuity,  to  begin  not  earlier
 6    than  age 55, if under such age at withdrawal, as computed in
 7    the last preceding paragraph, reduced 0.25% if  the  employee
 8    was  born before January 1, 1936, or 0.5% if the employee was
 9    born on or after January 1, 1936,  for  each  full  month  or
10    fractional  part  thereof  that  his  attained  age when such
11    annuity is to begin is less than 60.
12        Any employee born before January 1,  1936  who  withdraws
13    with 20 or more years of service, and any employee with 20 or
14    more  years  of  service who withdraws on or after January 1,
15    1988, may elect to receive, in lieu  of  any  other  employee
16    annuity  provided  in this Section, an annuity for life equal
17    to 1.80% for each of the first 10 years of service, 2.00% for
18    each of the next 10 years of service, 2.20% for each year  of
19    service  in excess of 20, but not exceeding 30, and 2.40% for
20    each year of service in excess of 30, of the highest  average
21    annual  salary for any 4 consecutive years within the last 10
22    years  of  service  immediately   preceding   the   date   of
23    withdrawal, to begin not earlier than upon attained age of 55
24    years,  if  under  such  age at withdrawal, reduced 0.25% for
25    each full month or fractional part thereof that his  attained
26    age  when annuity is to begin is less than 60; except that an
27    employee retiring on or after January 1, 1988, at age  55  or
28    over  but  less  than  age  60,  having  at least 35 years of
29    service, or an employee retiring on or after July 1, 1990, at
30    age 55 or over but less than age 60, having at least 30 years
31    of service, or an employee retiring on or after the effective
32    date of this amendatory Act of 1997, at age 55  or  over  but
33    less  than age 60, having at least 25 years of service, shall
34    not be subject to the reduction in retirement annuity because
 
HB2099 Engrossed            -40-               LRB9207727LDpr
 1    of retirement below age 60.
 2        However, in the case of an employee  who  retired  on  or
 3    after  January  1, 1985 but before January 1, 1988, at age 55
 4    or older and with at least 35 years of service, and  who  was
 5    subject  under  this  subsection  (a)  to  the  reduction  in
 6    retirement  annuity  because of retirement below age 60, that
 7    reduction shall cease to be effective January  1,  1991,  and
 8    the retirement annuity shall be recalculated accordingly.
 9        Any employee who withdraws on or after July 1, 1990, with
10    20 or more years of service, may elect to receive, in lieu of
11    any  other  employee  annuity  provided  in  this Section, an
12    annuity for life equal to 2.20% for each year of  service  if
13    withdrawal is before 60 days after the effective date of this
14    amendatory  Act  of  the  92nd General Assembly, or 2.40% for
15    each year of service if  withdrawal  is  60  days  after  the
16    effective  date  of  this  amendatory Act of the 92nd General
17    Assembly or later, of the highest average annual  salary  for
18    any  4  consecutive years within the last 10 years of service
19    immediately preceding the date of withdrawal,  to  begin  not
20    earlier than upon attained age of 55 years, if under such age
21    at   withdrawal,   reduced  0.25%  for  each  full  month  or
22    fractional part thereof that his attained age when annuity is
23    to begin is less than 60; except that an employee retiring at
24    age 55 or over but less than age 60, having at least 30 years
25    of  service,  shall  not  be  subject  to  the  reduction  in
26    retirement annuity because of retirement below age 60.
27        Any employee who withdraws on or after the effective date
28    of this amendatory Act of 1997  with  20  or  more  years  of
29    service  may  elect to receive, in lieu of any other employee
30    annuity provided in this Section, an annuity for  life  equal
31    to 2.20%, for each year of service if withdrawal is before 60
32    days  after  the effective date of this amendatory Act of the
33    92nd General Assembly, or 2.40% for each year of  service  if
34    withdrawal  is  60  days  after  the  effective  date of this
 
HB2099 Engrossed            -41-               LRB9207727LDpr
 1    amendatory Act of the 92nd General Assembly or later, of  the
 2    highest  average  annual  salary  for any 4 consecutive years
 3    within the last 10 years of service immediately preceding the
 4    date of withdrawal, to begin not earlier than upon attainment
 5    of age 55 (age 50 if the employee has at least  30  years  of
 6    service),  reduced  0.25%  for  each  full month or remaining
 7    fractional part thereof that the employee's attained age when
 8    annuity is to begin is less than 60; except that an  employee
 9    retiring  at age 50 or over with at least 30 years of service
10    or at age 55 or over with at least 25 years of service  shall
11    not be subject to the reduction in retirement annuity because
12    of retirement below age 60.
13        The  maximum  annuity payable under this paragraph (a) of
14    this Section shall not exceed 70% of highest  average  annual
15    salary in the case of an employee who withdraws prior to July
16    1,  1971,  75%  if withdrawal takes place on or after July 1,
17    1971, and prior to 60 days after the effective date  of  this
18    amendatory  Act  of  the  92nd  General  Assembly,  or 80% if
19    withdrawal is 60  days  after  the  effective  date  of  this
20    amendatory Act of the 92nd General Assembly or later. For the
21    purpose  of  the  minimum annuity provided in said paragraphs
22    $1,500 shall be considered the minimum annual salary for  any
23    year;  and the maximum annual salary to be considered for the
24    computation of such annuity shall  be  $4,800  for  any  year
25    prior  to 1953, $6,000 for the years 1953 to 1956, inclusive,
26    and the actual annual salary, as salary is  defined  in  this
27    Article, for any year thereafter.
28        (b)  For  an  employee  receiving disability benefit, his
29    salary for annuity purposes under this Section shall, for all
30    periods of disability benefit subsequent to the year 1956, be
31    the amount on which his disability benefit was based.
32        (c)  An employee with 20 or more years of service,  whose
33    entire  disability  benefit  credit  period  expires prior to
34    attainment of age 55 while still disabled for service,  shall
 
HB2099 Engrossed            -42-               LRB9207727LDpr
 1    be  entitled upon withdrawal to the larger of (1) the minimum
 2    annuity provided above assuming that he is then age  55,  and
 3    reducing  such  annuity  to  its  actuarial equivalent at his
 4    attained age on such date, or (2) the annuity  provided  from
 5    his age and service and prior service annuity credits.
 6        (d)  The  minimum  annuity  provisions as aforesaid shall
 7    not apply to any former employee receiving  an  annuity  from
 8    the fund, and who re-enters service as an employee, unless he
 9    renders at least 3 years of additional service after the date
10    of re-entry.
11        (e)  An  employee  in  service  on  July  1, 1947, or who
12    became a contributor after July 1, 1947 and prior to July  1,
13    1950,  or  who  shall  become a contributor to the fund after
14    July 1, 1950 prior to attainment of  age  70,  who  withdraws
15    after age 65 with less than 20 years of service, for whom the
16    annuity  has  been fixed under the foregoing Sections of this
17    Article shall, in lieu of the annuity so  fixed,  receive  an
18    annuity as follows:
19        Such amount as he could have received had the accumulated
20    amounts  for  annuity  been  improved  with  interest  at the
21    effective  rate  to  the  date  of  his  withdrawal,  or   to
22    attainment  of age 70, whichever is earlier, and had the city
23    contributed to such earlier date for age and service  annuity
24    the amount that would have been contributed had he been under
25    age  65,  after  the date his annuity was fixed in accordance
26    with this Article, and assuming  his  annuity  were  computed
27    from  such  accumulations as of his age on such earlier date.
28    The annuity so computed shall not exceed  the  annuity  which
29    would  be  payable under the other provisions of this Section
30    if the employee was credited with 20  years  of  service  and
31    would qualify for annuity thereunder.
32        (f)  In  lieu  of  the annuity provided in this or in any
33    other Section of this Article, an  employee  having  attained
34    age  65  with at least 15 years of service who withdraws from
 
HB2099 Engrossed            -43-               LRB9207727LDpr
 1    service on or after July 1, 1971 and whose  annuity  computed
 2    under  other  provisions  of  this  Article  is less than the
 3    amount provided under this paragraph  shall  be  entitled  to
 4    receive  a minimum annual annuity for life equal to 1% of the
 5    highest average annual salary for  any  4  consecutive  years
 6    within  the  last  10  years of service immediately preceding
 7    retirement for each year of his service plus the sum  of  $25
 8    for  each  year  of  service.  Such  annual annuity shall not
 9    exceed the maximum percentages stated under paragraph (a)  of
10    this Section of such highest average annual salary.
11        (f-1)  Instead  of  any other retirement annuity provided
12    in this Article, an employee who has at  least  10  years  of
13    service  and  withdraws  from  service on or after January 1,
14    1999 may elect to receive  a  retirement  annuity  for  life,
15    beginning no earlier than upon attainment of age 60, equal to
16    2.2% if withdrawal is before 60 days after the effective date
17    of  this  amendatory Act of the 92nd General Assembly or 2.4%
18    for each year of service if withdrawal is 60 days  after  the
19    effective  date  of  this  amendatory Act of the 92nd General
20    Assembly or later, of final average salary for each  year  of
21    service,  subject to a maximum of 75% of final average salary
22    if withdrawal is before 60 days after the effective  date  of
23    this  amendatory  Act of the 92nd General Assembly, or 80% if
24    withdrawal is 60  days  after  the  effective  date  of  this
25    amendatory Act of the 92nd General Assembly or later. For the
26    purpose  of  calculating this annuity, "final average salary"
27    means the highest average annual salary for any 4 consecutive
28    years in the last 10 years of service.
29        (g)  Any annuity payable under the preceding  subsections
30    of  this  Section  11-134  shall  be  paid  in  equal monthly
31    installments.
32        (h)  The amendatory provisions of part  (a)  and  (f)  of
33    this Section shall be effective July 1, 1971 and apply in the
34    case  of  every  qualifying  employee withdrawing on or after
 
HB2099 Engrossed            -44-               LRB9207727LDpr
 1    July 1, 1971.
 2        (i)  The amendatory provisions of this amendatory Act  of
 3    1985   relating   to  the  discount  of  annuity  because  of
 4    retirement prior to attainment of age 60 and  increasing  the
 5    retirement  formula  for  those  born before January 1, 1936,
 6    shall apply only to qualifying employees  withdrawing  on  or
 7    after August 16, 1985.
 8        (j)  Beginning  on January 1, 1999, the minimum amount of
 9    employee's annuity shall be $850 per month for life  for  the
10    following  classes  of  employees, without regard to the fact
11    that withdrawal occurred prior to the effective date of  this
12    amendatory Act of 1998:
13             (1)  any  employee  annuitant  alive and receiving a
14        life annuity on the effective date of this amendatory Act
15        of 1998, except a reciprocal annuity;
16             (2)  any employee annuitant alive  and  receiving  a
17        term annuity on the effective date of this amendatory Act
18        of 1998, except a reciprocal annuity;
19             (3)  any  employee  annuitant  alive and receiving a
20        reciprocal  annuity  on  the  effective  date   of   this
21        amendatory  Act of 1998, whose service in this fund is at
22        least 5 years;
23             (4)  any employee annuitant withdrawing after age 60
24        on or after the effective date of this amendatory Act  of
25        1998, with at least 10 years of service in this fund.
26        The  increases  granted  under  items (1), (2) and (3) of
27    this subsection (j) shall not be limited by any other Section
28    of this Act.
29    (Source: P.A. 90-32,  eff.  6-27-97;  90-511,  eff.  8-22-97;
30    90-766, eff. 8-14-98.)

31        (40 ILCS 5/11-134.1) (from Ch. 108 1/2, par. 11-134.1)
32        Sec. 11-134.1. Automatic increase in annuity.
33        (a)  An  employee  who  retired  or  retires from service
 
HB2099 Engrossed            -45-               LRB9207727LDpr
 1    after December 31, 1963, and before January 1,  1987,  having
 2    attained  age  60  or more, shall, in the month of January of
 3    the year following the year in which the first anniversary of
 4    retirement occurs, have the amount  of  his  then  fixed  and
 5    payable  monthly  annuity increased by 1 1/2%, and such first
 6    fixed annuity as granted at retirement increased by a further
 7    1 1/2% in January of each  year  thereafter.  Beginning  with
 8    January of the year 1972, such increases shall be at the rate
 9    of  2%  in  lieu of the aforesaid specified 1 1/2%. Beginning
10    January, 1984, such increases shall be at  the  rate  of  3%.
11    Beginning  in January of 1999, such increases shall be at the
12    rate  of  3%  of  the  currently  payable  monthly   annuity,
13    including   any   increases  previously  granted  under  this
14    Article.  An employee who retires on annuity  after  December
15    31,  1963  and  before  January 1, 1987, but prior to age 60,
16    shall receive such increases beginning with  January  of  the
17    year  immediately  following the year in which he attains the
18    age of 60 years.
19        An employee who retires from service on or after  January
20    1,  1987 shall, upon the first annuity payment date following
21    the first anniversary of the date of retirement, or upon  the
22    first  annuity  payment  date following attainment of age 60,
23    whichever occurs later,  have  his  then  fixed  and  payable
24    monthly  annuity  increased  by 3%, and such annuity shall be
25    increased by an additional 3% of the original  fixed  annuity
26    on  the same date each year thereafter.  Beginning in January
27    of 1999, such increases shall be at the rate  of  3%  of  the
28    currently  payable  monthly  annuity, including any increases
29    previously granted under this Article.
30        (a-5) Notwithstanding the provisions of  subsection  (a),
31    upon  the  first annuity payment date following (1) the third
32    anniversary of retirement, (2) the attainment of age  53,  or
33    (3)  the  date  60  days  after  the  effective  date of this
34    amendatory Act of the 92nd General Assembly, whichever occurs
 
HB2099 Engrossed            -46-               LRB9207727LDpr
 1    latest, the monthly pension of an  employee  who  retires  on
 2    annuity  prior  to  the  attainment  of  age  60  who has not
 3    received an increase under subsection (a) shall be  increased
 4    by  3%,  and such annuity shall be increased by an additional
 5    3% of the current payable  monthly  annuity,  including  such
 6    increases  previously granted under this Article, on the same
 7    date each year thereafter. The increases provided under  this
 8    subsection   are   in  lieu  of  the  increases  provided  in
 9    subsection (a).
10        (b) The foregoing  provision  is  not  applicable  to  an
11    employee retiring and receiving a term annuity, as defined in
12    this  Article,  nor  to  any otherwise qualified employee who
13    retires before he shall have made employee contributions  (at
14    the  1/2 of 1% rate as hereinafter provided) for the purposes
15    of this additional annuity for not less than  the  equivalent
16    of   one  full  year.  Such  employee,  however,  shall  make
17    arrangement to pay to the fund a balance of such  1/2  of  1%
18    contributions,  based on his final salary, as will bring such
19    1/2 of 1% contributions, computed without  interest,  to  the
20    equivalent of or completion of one year's contributions.
21        Beginning  with the month of January, 1964, each employee
22    shall contribute by means of salary deductions 1/2 of  1%  of
23    each salary payment, concurrently with and in addition to the
24    employee contributions otherwise made for annuity purposes.
25        Each  such  additional  employee  contribution  shall  be
26    credited  to an account in the prior service annuity reserve,
27    to be used, together with city contributions, to  defray  the
28    cost  of  the specified annuity increments. Any balance as of
29    the beginning of each calendar year existing in such  account
30    shall be credited with interest at the rate of 3% per annum.
31        Such  employee  contributions  shall  not  be  subject to
32    refund, except to an employee who resigns  or  is  discharged
33    and  applies for refund under this Article, and also in cases
34    where a term annuity becomes payable.
 
HB2099 Engrossed            -47-               LRB9207727LDpr
 1        In  such  cases  the  employee  contributions  shall   be
 2    refunded   him,   without   interest,   and  charged  to  the
 3    aforementioned account in the prior service annuity reserve.
 4    (Source: P.A. 90-766, eff. 8-14-98.)

 5        (40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
 6        Sec. 11-145.1.  Minimum annuities for widows.
 7        The widow otherwise eligible for  widow's  annuity  under
 8    other Sections of this Article 11, of an employee hereinafter
 9    described,  who  retires  from  service  or dies while in the
10    service subsequent to the effective date of  this  amendatory
11    provision,  and for which widow the amount of widow's annuity
12    and widow's prior service annuity combined, fixed or provided
13    for such widow under other provisions of said Article  11  is
14    less  than  the  amount hereinafter provided in this section,
15    shall, from and after the date her otherwise provided annuity
16    would begin, in lieu of such otherwise provided  widow's  and
17    widow's  prior  service annuity, be entitled to the following
18    indicated amount of annuity:
19        (a)  The widow of any employee who dies while in  service
20    on  or after the date on which he attains age 60 if the death
21    occurs before July 1, 1990, or on or after the date on  which
22    he  attains  age  55  if the death occurs on or after July 1,
23    1990, with at least 20 years of service, or on or  after  the
24    date  on  which  he  attains age 50 if the death occurs on or
25    after the effective date of this amendatory Act of 1997  with
26    at least 30 years of service, shall be entitled to an annuity
27    equal to one-half of the amount of annuity which her deceased
28    husband  would have been entitled to receive had he withdrawn
29    from the service on the day immediately preceding the date of
30    his death, conditional upon such widow having attained age 60
31    on or before such date if the death  occurs  before  July  1,
32    1990, or age 55 if the death occurs on or after July 1, 1990,
33    or age 50 if the death occurs on or after January 1, 1998 and
 
HB2099 Engrossed            -48-               LRB9207727LDpr
 1    the  employee  is  age  50  or over with at least 30 years of
 2    service or age 55 or over with at least 25 years of  service.
 3    Except  as  provided  in  subsection (j), the widow's annuity
 4    shall not, however, exceed the sum of $500  a  month  if  the
 5    employee's  death  in service occurs before January 23, 1987.
 6    The widow's annuity shall not be limited to a maximum  dollar
 7    amount  if the employee's death in service occurs on or after
 8    January 23, 1987.
 9        If the employee dies in service before July 1, 1990,  and
10    if  such  widow of such described employee shall not be 60 or
11    more years of age on such date of death, the amount  provided
12    in the immediately preceding paragraph for a widow 60 or more
13    years  of  age,  shall, in the case of such younger widow, be
14    reduced by 0.25% for each month that her then attained age is
15    less than 60 years if the employee was born before January 1,
16    1936, or dies in service on or after January 1, 1988, or 0.5%
17    for each month that her then attained age  is  less  than  60
18    years  if  the  employee was born on or after January 1, 1936
19    and dies in service before January 1, 1988.
20        If the employee dies in service on or after July 1, 1990,
21    and if the widow of the employee has not attained age  55  on
22    or  before the employee's date of death, the amount otherwise
23    provided in this subsection (a) shall be reduced by 0.25% for
24    each month that her then attained age is less than 55  years;
25    except  that  if  the  employee  dies  in service on or after
26    January 1, 1998 at age 50 or over with at least 30  years  of
27    service  or  at  age  55  or  over  with at least 25 years of
28    service, there shall be no reduction due to the  widow's  age
29    if  she  has attained age 50 on or before the employee's date
30    of death, and if the widow has not  attained  age  50  on  or
31    before  the  employee's  date  of  death the amount otherwise
32    provided in this subsection (a) shall be reduced by 0.25% for
33    each month that her then attained age is less than 50 years.
34        (b)  The widow of any employee who dies subsequent to the
 
HB2099 Engrossed            -49-               LRB9207727LDpr
 1    date of his retirement on annuity, and who so retired  on  or
 2    after  the  date  on  which  he attained age 60 if retirement
 3    occurs before July 1, 1990, or on or after the date on  which
 4    he  attained  age 55 if retirement occurs on or after July 1,
 5    1990, with at least 20 years of service, or on or  after  the
 6    date  on which he attained age 50 if the retirement occurs on
 7    or after the effective date of this amendatory  Act  of  1997
 8    with  at  least  30 years of service, shall be entitled to an
 9    annuity equal to one-half of the amount of annuity which  her
10    deceased husband received as of the date of his retirement on
11    annuity,  conditional  upon such widow having attained age 60
12    on or before the date of her husband's retirement on  annuity
13    if  retirement  occurs  before  July  1,  1990,  or age 55 if
14    retirement occurs on or after July 1, 1990, or age 50 if  the
15    retirement  on annuity occurs on or after January 1, 1998 and
16    the employee is age 50 or over with  at  least  30  years  of
17    service or age 55 or over with at least 25 years of service.
18    Except  as  provided  in subsection (j), this widow's annuity
19    shall not, however, exceed the sum of $500  a  month  if  the
20    employee's death occurs before January 23, 1987.  The widow's
21    annuity  shall  not  be limited to a maximum dollar amount if
22    the employee's death occurs on or  after  January  23,  1987,
23    regardless  of  the  date  of  retirement;  provided that, if
24    retirement was before  January  23,  1987,  the  employee  or
25    eligible spouse repays the excess spouse refund with interest
26    at  the effective rate from the date of refund to the date of
27    repayment.
28        If the date of the employee's retirement  on  annuity  is
29    before  July  1,  1990,  and  if such widow of such described
30    employee shall not have attained such age of 60 or more years
31    on such date of her  husband's  retirement  on  annuity,  the
32    amount  provided in the immediately preceding paragraph for a
33    widow 60 or more years of age on the date  of  her  husband's
34    retirement  on  annuity,  shall,  in  the  case  of such then
 
HB2099 Engrossed            -50-               LRB9207727LDpr
 1    younger widow, be reduced by 0.25% for each  month  that  her
 2    then  attained age was less than 60 years if the employee was
 3    born before January 1, 1936, or withdraws from service on  or
 4    after  January  1, 1988, or 0.5% for each month that her then
 5    attained age was less than 60 years if the employee was  born
 6    on or after January 1, 1936 and withdraws from service before
 7    January 1, 1988.
 8        If the date of the employee's retirement on annuity is on
 9    or  after  July 1, 1990, and if the widow of the employee has
10    not attained age 55 by the date of the employee's  retirement
11    on  annuity, the amount otherwise provided in this subsection
12    (b) shall be reduced by 0.25% for each month  that  her  then
13    attained  age  is  less  than  55  years;  except that if the
14    employee retires on annuity on or after January  1,  1998  at
15    age 50 or over with at least 30 years of service or at age 55
16    or  over with at least 25 years of service, there shall be no
17    reduction due to the widow's age if she has attained  age  50
18    on  or  before the employee's date of death, and if the widow
19    has not attained age 50 on or before the employee's  date  of
20    death  the  amount  otherwise provided in this subsection (b)
21    shall be reduced by  0.25%  for  each  month  that  her  then
22    attained age is less than 50 years.
23        (c)  The   foregoing   provisions   relating  to  minimum
24    annuities for widows shall not apply  to  the  widow  of  any
25    former  employee receiving an annuity from the fund on August
26    2,  1965  or  on  the  effective  date  of  this   amendatory
27    provision, who re-enters service as a former employee, unless
28    such  employee renders at least 3 years of additional service
29    after the date of re-entry.
30        (d)  (Blank).
31        (e)  (Blank).
32        (f)  The amendments to this Section  by  this  amendatory
33    Act of 1985, relating to changing the discount because of age
34    from  1/2  of  1%  to 0.25% per month for widows of employees
 
HB2099 Engrossed            -51-               LRB9207727LDpr
 1    born before January 1, 1936, shall apply only  to  qualifying
 2    widows  whose  husbands  die while in the service on or after
 3    August 16, 1985 or withdraw and enter on annuity on or  after
 4    August 16, 1985.
 5        (g)  Beginning  on January 1, 1999, the minimum amount of
 6    widow's annuity shall be $800 per  month  for  life  for  the
 7    following  classes of widows, without regard to the fact that
 8    the death of the employee occurred  prior  to  the  effective
 9    date of this amendatory Act of 1998:
10             (1)  any  widow annuitant alive and receiving a term
11        annuity on the effective date of this amendatory  Act  of
12        1998, except a reciprocal annuity;
13             (2)  any  widow annuitant alive and receiving a life
14        annuity on the effective date of this amendatory  Act  of
15        1998, except a reciprocal annuity;
16             (3)  any  widow  annuitant  alive  and  receiving  a
17        reciprocal   annuity   on  the  effective  date  of  this
18        amendatory Act of 1998, whose employee  spouse's  service
19        in this fund was at least 5 years;
20             (4)  the widow of an employee with at least 10 years
21        of service in this fund who dies after retirement, if the
22        retirement  occurred  prior to the effective date of this
23        amendatory Act of 1998;
24             (5)  the widow of an employee with at least 10 years
25        of service in this fund who  dies  after  retirement,  if
26        withdrawal  occurs on or after the effective date of this
27        amendatory Act of 1998;
28             (6)  the widow of an employee who  dies  in  service
29        with  at  least  5  years of service in this fund, if the
30        death in service occurs on or after the effective date of
31        this amendatory Act of 1998.
32        The increases granted under items (1), (2), (3)  and  (4)
33    of  this  subsection  (g)  shall  not be limited by any other
34    Section of this Act.
 
HB2099 Engrossed            -52-               LRB9207727LDpr
 1        (h)  The widow of an employee  who  retired  or  died  in
 2    service  on or after January 1, 1985 and before July 1, 1990,
 3    at age 55 or older, and with at least  35  years  of  service
 4    credit,  shall  be  entitled  to  have  her  widow's  annuity
 5    increased,  effective  January 1, 1991, to an amount equal to
 6    50% of the retirement  annuity  that  the  deceased  employee
 7    received  on  the  date  of  retirement,  or  would have been
 8    eligible to receive if he had retired on  the  day  preceding
 9    the  date of his death in service, provided that if the widow
10    had not attained  age  60  by  the  date  of  the  employee's
11    retirement  or  death  in  service, the amount of the annuity
12    shall be reduced by  0.25%  for  each  month  that  her  then
13    attained   age  was  less  than  age  60  if  the  employee's
14    retirement or death in service occurred on or  after  January
15    1,  1988, or by 0.5%  for each month that her attained age is
16    less than age 60 if the employee's  retirement  or  death  in
17    service occurred prior to January 1, 1988.  However, in cases
18    where  a  refund  of excess contributions for widow's annuity
19    has been paid by the Fund, the increase in  benefit  provided
20    by  this subsection (h) shall be contingent upon repayment of
21    the refund to the Fund with interest at  the  effective  rate
22    from the date of refund to the date of payment.
23        (i)  If  a  deceased  employee  is receiving a retirement
24    annuity at the time of death and  that  death  occurs  on  or
25    after  June 27, 1997, the widow may elect to receive, in lieu
26    of any other annuity provided under this Article, 50% of  the
27    deceased  employee's  retirement annuity at the time of death
28    reduced by 0.25% for each month that the widow's age  on  the
29    date  of  death  is less than 55; except that if the employee
30    dies on or after January 1, 1998 and withdrew from service on
31    or after June 27, 1997 at age 50 or over  with  at  least  30
32    years  of service or at age 55 or over with at least 25 years
33    of service, there shall be no reduction due  to  the  widow's
34    age  if  she  has attained age 50 on or before the employee's
 
HB2099 Engrossed            -53-               LRB9207727LDpr
 1    date of death, and if the widow has not attained age 50 on or
 2    before the employee's date  of  death  the  amount  otherwise
 3    provided in this subsection (i) shall be reduced by 0.25% for
 4    each  month that her age on the date of death is less than 50
 5    years.   However,  in  cases  where  a   refund   of   excess
 6    contributions  for widow's annuity has been paid by the Fund,
 7    the benefit provided by this  subsection  (i)  is  contingent
 8    upon repayment of the refund to the Fund with interest at the
 9    effective  rate  from  the  date  of  refund  to  the date of
10    payment.
11        (j)  For widows of employees who died before January  23,
12    1987  after  retirement on annuity or in service, the maximum
13    dollar amount limitation on widow's annuity  shall  cease  to
14    apply,  beginning  with  the  first annuity payment after the
15    effective date of this amendatory Act of 1997; except that if
16    a refund of excess contributions for widow's annuity has been
17    paid by the Fund, the increase resulting from this subsection
18    (j) shall not begin before the refund has been repaid to  the
19    Fund,  together  with interest at the effective rate from the
20    date of the refund to the date of repayment.
21        (k)  In lieu  of  any  other  annuity  provided  in  this
22    Article,  an  eligible  spouse  of  an  employee  who dies in
23    service at least 60 days after the  effective  date  of  this
24    amendatory  Act of the 92nd General Assembly with at least 10
25    years of service shall be entitled to an annuity  of  50%  of
26    the  minimum formula annuity earned and accrued to the credit
27    of the employee at the date of death.  For  the  purposes  of
28    this  subsection,  the  minimum  formula  annuity  earned and
29    accrued to the credit of the employee is equal to  2.40%  for
30    each year of service of the highest average annual salary for
31    any  4  consecutive years within the last 10 years of service
32    immediately preceding the date of death, up to a  maximum  of
33    80% of the highest average annual salary.  This annuity shall
34    not  be reduced due to the age of the employee or spouse.  In
 
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 1    addition to any other  eligibility  requirements  under  this
 2    Article,  the spouse is eligible for this annuity only if the
 3    marriage was in effect for 10 full years or more.
 4    (Source: P.A. 90-32,  eff.  6-27-97;  90-511,  eff.  8-22-97;
 5    90-766, eff. 8-14-98.)

 6        (40 ILCS 5/11-153) (from Ch. 108 1/2, par. 11-153)
 7        Sec. 11-153.  Child's annuity.
 8        (a)  A  "Child's  Annuity" shall be payable monthly after
 9    the death of an employee parent to an unmarried  child  until
10    the child's attainment of age 18 or marriage, whichever event
11    shall  first  occur,  under  the following conditions, if the
12    child was born or in esse before the  employee  attained  age
13    65, and before he withdrew from service:
14             (1)  upon  death  resulting  from injury incurred in
15        the performance of an act of duty;
16             (2)  upon death in service from any cause other than
17        injury incurred  in  the  performance  of  duty,  if  the
18        employee  has  at least 4 years of service after the date
19        of his original entry into service, and at least 2  years
20        after the date of his latest re-entry;
21             (2)(3)  upon death of an employee who withdraws from
22        service  after  age  55 (or after age 50 with at least 30
23        years of service if withdrawal is on or  after  June  27,
24        1997)  and  who  has  entered  upon  or  is  eligible for
25        annuity.
26    Payment shall be made as provided in Section 11-124.
27        (b)  After July 24,  1967,  an  adopted  child  shall  be
28    entitled  to  the  same child's annuity benefits provided for
29    natural children in this Article, if:
30             (1)  the child was legally adopted by  the  employee
31        at least one year prior to the death of the employee; and
32             (2)  the  child  was  adopted  before  the  employee
33        withdrew from service attained age 55.
 
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 1    (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)

 2        (40 ILCS 5/11-156) (from Ch. 108 1/2, par. 11-156)
 3        Sec. 11-156.  Ordinary disability benefit.   An employee,
 4    while  under  age  65  and prior to January 1, 1979, or while
 5    under age 70 and after January 1, 1979, who becomes  disabled
 6    after  the  effective  date  as the result of any cause other
 7    than injury incurred in the performance of any act or acts of
 8    duty, shall be entitled to ordinary disability benefit during
 9    such disability, after the first 30 days thereof.
10        The disability benefit prescribed herein shall cease when
11    the  first  of  the  following  dates  shall  occur  and  the
12    employee, if still disabled, shall thereafter be entitled  to
13    such annuity as is otherwise provided in this Article:
14        (a)  the date disability ceases.
15        (b)  the  date  the  disabled employee attains age 65 for
16    disability commencing prior to January 1, 1979.
17        (c)  the  date  the  disabled  employee  attains  65  for
18    disability commencing prior to attainment of age  60  in  the
19    service and after January 1, 1979.
20        (d)  the date the disabled employee attains the age of 70
21    for  disability  commencing after attainment of age 60 in the
22    service and after January 1, 1979.
23        (e)  the date the payments of the benefit shall exceed in
24    the aggregate, throughout the employee's  service,  a  period
25    equal  to 1/4 of the total service rendered prior to the date
26    of disability but in no event more than 5 years. In computing
27    such total the following periods shall be excluded:
28        (i)  Any  period  during  which  the  employee   received
29    ordinary disability benefit;
30        (ii)  Any  period of absence from duty, whether caused by
31    layoff, leave of absence or suspension of employment, or  any
32    other  reason,  unless the board, upon satisfactory evidence,
33    finds that the disability resulted from a cause which existed
 
HB2099 Engrossed            -56-               LRB9207727LDpr
 1    or occurred prior to such period of absence. No employee  who
 2    becomes  disabled  and whose disability begins during absence
 3    from duty (other than while on vacation with pay) shall  have
 4    any  right  to  ordinary disability benefit, except as herein
 5    provided, until he recovers from such disability and performs
 6    the duties of his position in the service  for  at  least  15
 7    consecutive  days,  Sundays and holidays excepted, after such
 8    recovery.
 9        The first payment shall be made not later than one  month
10    after  the  benefit  is  granted  and each subsequent payment
11    shall be made  not  later  than  one  month  after  the  last
12    preceding payment.
13        Ordinary   disability   benefit   shall  be  50%  of  the
14    employee's salary at the date of disability.
15        For ordinary disability benefits paid before  January  1,
16    2001,  before  any  payment, an amount equal to, less the sum
17    ordinarily deducted from salary for all annuity purposes  for
18    such period for which the ordinary disability benefit is made
19    shall  be  deducted  from  such  payment  and credited to the
20    employee as a deduction from salary  for  that  period.   The
21    sums  so deducted shall be credited to the employee and shall
22    be regarded, for annuity and refund purposes,  as  an  amount
23    contributed by him.
24        For ordinary disability benefits paid on or after January
25    1,  2001,  the  fund  shall  credit sums equal to the amounts
26    ordinarily contributed by an employee  for  annuity  purposes
27    for  any  period  during which the employee receives ordinary
28    disability, and  those  sums  shall  be  deemed  for  annuity
29    purposes   and   purposes   of   Section  11-169  as  amounts
30    contributed by the  employee.   These  amounts  credited  for
31    annuity purposes shall not be credited for refund purposes.
32        Any   employee  whose  ordinary  disability  benefit  was
33    terminated after January 1, 1979 by reason of his  attainment
34    of  age  65 and who continues disabled after age 65 may elect
 
HB2099 Engrossed            -57-               LRB9207727LDpr
 1    before July 1, 1986 to have such benefits  resumed  beginning
 2    at   the  time  of  such  termination  and  continuing  until
 3    termination is required under this Section as amended by this
 4    amendatory Act of 1985.  The amount payable to  any  employee
 5    for  such  resumed benefit for any period shall be reduced by
 6    the amount of any retirement annuity paid  to  such  employee
 7    under  this  Article for the same period of time or by refund
 8    paid in lieu of annuity.
 9    (Source: P.A. 85-964.)

10        (40 ILCS 5/11-164) (from Ch. 108 1/2, par. 11-164)
11        Sec. 11-164. Refunds - Withdrawal before age 55  or  with
12    less than 10 years of service.
13        (1)  An  employee,  without  regard to length of service,
14    who withdraws before age 55, and any employee with less  than
15    10  years  of  service  who withdraws before age 60, shall be
16    entitled to a refund of the  total  sum  accumulated  to  his
17    credit  as  of date of withdrawal for age and service annuity
18    and widow's annuity from amounts contributed by him or by the
19    City  in  lieu  of   employee   contributions   during   duty
20    disability;  provided  that  such  amounts contributed by the
21    city after December 31, 1983 while the employee is  receiving
22    duty disability benefits and amounts credited to the employee
23    for  annuity  purposes  by  the  fund after December 31, 2000
24    while the employee is receiving ordinary disability  benefits
25    shall not be credited for refund purposes.
26        The  board  may  in  its  discretion  withhold payment of
27    refund for a period not to exceed 6 months from the  date  of
28    withdrawal.  Interest  at the effective rate shall be paid on
29    any such refund withheld during such withheld period  not  to
30    exceed 6 months.
31        (2)  Upon  receipt of the refund, the employee surrenders
32    and forfeits all rights to any annuity or other benefits, for
33    himself and for any other persons who  might  have  benefited
 
HB2099 Engrossed            -58-               LRB9207727LDpr
 1    through him; provided that he may have such period of service
 2    counted  in  computing  the  term  of his service for age and
 3    service annuity purposes  only  if  he  becomes  an  employee
 4    before age 65.
 5        (3)  An employee who does not receive a refund shall have
 6    all amounts to his credit for annuity purposes on the date of
 7    his withdrawal improved by interest only until he becomes age
 8    65,  while  out  of  service,  at the effective rate, for his
 9    benefit and the benefit of any person who may have any  right
10    to  annuity  through  him  if  he  re-enters  the service and
11    attains a right to annuity.
12        (4)  Any such employee shall retain such right to  refund
13    of  such  amounts  when  he  shall  apply  for same, until he
14    re-enters the service or until the amount of annuity to which
15    he shall have a right shall have been fixed  as  provided  in
16    this  Article.  Thereafter,  no such right shall exist in the
17    case of any such employee.
18    (Source: P.A. 83-499.)

19        (40 ILCS 5/11-167) (from Ch. 108 1/2, par. 11-167)
20        Sec. 11-167.  Refunds in lieu of annuity.  In lieu of  an
21    annuity,  an  employee who withdraws, and whose annuity would
22    amount to less than $800  a  month  for  life  may  elect  to
23    receive  a  refund of the total sum accumulated to his credit
24    from employee contributions for annuity purposes.
25        The widow of any employee, eligible for annuity upon  the
26    death of her husband, whose annuity would amount to less than
27    $800  a  month  for  life, may, in lieu of a widow's annuity,
28    elect to receive a refund of  the  accumulated  contributions
29    for annuity purposes, based on the amounts contributed by her
30    deceased   employee  husband,  but  reduced  by  any  amounts
31    theretofore paid to him in the form of an annuity  or  refund
32    out of such accumulated contributions.
33        Accumulated   contributions   shall   mean   the  amounts
 
HB2099 Engrossed            -59-               LRB9207727LDpr
 1    including  interest  credited  thereon  contributed  by   the
 2    employee  for age and service and widow's annuity to the date
 3    of his withdrawal  or  death,  whichever  first  occurs,  and
 4    including  the accumulations from any amounts contributed for
 5    him as salary  deductions  while  receiving  duty  disability
 6    benefits;  provided that such amounts contributed by the city
 7    after December 31, 1983 while the employee is receiving  duty
 8    disability  benefits and amounts credited to the employee for
 9    annuity purposes by the fund after December  31,  2000  while
10    the employee is receiving ordinary disability benefits.
11        The acceptance of such refund in lieu of widow's annuity,
12    on the part of a widow, shall not deprive a child or children
13    of the right to receive a child's annuity as provided  for in
14    Sections 11-153 and 11-154 of this Article, and neither shall
15    the  payment  of a child's annuity in the case of such refund
16    to a widow reduce the amount herein set forth  as  refundable
17    to such widow electing a refund in lieu of widow's annuity.
18    (Source: P.A. 90-655, eff. 7-30-98; 91-887, eff. 7-6-00.)

19        (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
20        Sec.  15-112.   Final  rate  of earnings.  "Final rate of
21    earnings":  For an employee who is paid on an hourly basis or
22    who receives an  annual  salary  in  installments  during  12
23    months  of  each  academic  year, the average annual earnings
24    during the 48 consecutive calendar month period  ending  with
25    the  last  day  of  final  termination of employment or the 4
26    consecutive academic years of service in which the employee's
27    earnings were the highest, whichever is  greater.    For  any
28    other  employee,  the  average  annual  earnings during the 4
29    consecutive academic years of service in  which  his  or  her
30    earnings were the highest.  For an employee with less than 48
31    months  or  4  consecutive  academic  years  of  service, the
32    average earnings during his or her entire period of service.
33    The earnings of an employee  with  more  than  36  months  of
 
HB2099 Engrossed            -60-               LRB9207727LDpr
 1    service  prior to the date of becoming a participant are, for
 2    such period, considered equal to the average earnings  during
 3    the last 36 months of such service.  For an employee on leave
 4    of  absence  with pay, or on leave of absence without pay who
 5    makes contributions during such leave, earnings  are  assumed
 6    to  be  equal to the basic compensation on the date the leave
 7    began.  For an employee on  disability  leave,  earnings  are
 8    assumed  to  be  equal  to the basic compensation on the date
 9    disability occurs or  the  average  earnings  during  the  24
10    months  immediately  preceding  the month in which disability
11    occurs, whichever is greater.
12        For a participant who retires on or after  the  effective
13    date of this amendatory Act of 1997 with at least 20 years of
14    service  as  a  firefighter  or  police  officer  under  this
15    Article,  the final rate of earnings shall be the annual rate
16    of earnings received by the participant on his  or  her  last
17    day as a firefighter or police officer under this Article, if
18    that is greater than the final rate of earnings as calculated
19    under the other provisions of this Section.
20        If  a  participant  is  an employee for at least 6 months
21    during the academic year in which his or  her  employment  is
22    terminated, the annual final rate of earnings shall be 25% of
23    the  sum  of (1) the annual basic compensation for that year,
24    and (2) the amount earned during the  36  months  immediately
25    preceding  that  year, if this is greater than the final rate
26    of earnings as calculated under the other provisions of  this
27    Section.
28        In the determination of the final rate of earnings for an
29    employee,  that  part  of  an  employee's  earnings  for  any
30    academic  year  beginning  after June 30, 1997, which exceeds
31    the employee's earnings with that employer for the  preceding
32    year  by more than 20 percent shall be excluded; in the event
33    that an employee has more than one employer  this  limitation
34    shall  be  calculated  separately  for the earnings with each
 
HB2099 Engrossed            -61-               LRB9207727LDpr
 1    employer.   In  making  such  calculation,  only  the   basic
 2    compensation of employees shall be considered, without regard
 3    to   vacation   or   overtime  or  to  contracts  for  summer
 4    employment.
 5        The  following  are  not  considered   as   earnings   in
 6    determining  final  rate of earnings: severance or separation
 7    pay, retirement pay, payment for in lieu of unused sick leave
 8    and  payments  from  an  employer  for  the  period  used  in
 9    determining final rate of earnings for any purpose other than
10    services rendered,  leave  of  absence  or  vacation  granted
11    during  that  period,  and  vacation  of  up  to 56 work days
12    allowed upon termination of employment; except that,  if  the
13    benefit  has been collectively bargained between the employer
14    and the recognized collective bargaining  agent  pursuant  to
15    the   Illinois   Educational  Labor  Relations  Act,  payment
16    received during a period of up to 2 academic years for unused
17    sick leave may be considered as earnings in  accordance  with
18    the  applicable  collective  bargaining agreement, subject to
19    the 20% increase limitation of this Section.  Any unused sick
20    leave considered as earnings under this Section shall not  be
21    taken  into  account  in  calculating  service  credit  under
22    Section 15-113.4.
23        Intermittent  periods  of  service shall be considered as
24    consecutive in determining final rate of earnings.
25    (Source: P.A.  90-65,  eff.  7-7-97;  90-511,  eff.  8-22-97;
26    91-887, eff. 7-6-00.)

27        Section  90.  The State Mandates Act is amended by adding
28    Section 8.25 as follows:

29        (30 ILCS 805/8.25 new)
30        Sec. 8.25. Exempt mandate.   Notwithstanding  Sections  6
31    and  8 of this Act, no reimbursement by the State is required
32    for  the  implementation  of  any  mandate  created  by  this
 
HB2099 Engrossed            -62-               LRB9207727LDpr
 1    amendatory Act of the 92nd General Assembly.

 2        Section 99. Effective date.  This Act takes  effect  upon
 3    becoming law.

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