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92_SB0774
LRB9207762EGfg
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 2-108, 2-108.1, 2-110, 2-117, 2-119.1,
6 2-121, 2-123, 3-110.6, 5-154, 5-154.1, 5-157, 5-167.1, 5-212,
7 5-236, 6-140, 7-132, 7-139, 7-139.7, 7-139.8, 8-110, 8-113,
8 8-120, 8-150.1, 8-158, 8-161, 8-167, 8-168, 8-171, 8-174.1,
9 8-227, 8-230.7, 8-243.2, 9-121.6, 9-121.10, 9-121.15, 9-134,
10 9-146.1, 9-163, 9-179.1, 9-185, 9-186, 9-187, 9-219,
11 11-125.8, 11-134, 11-145.1, 11-153, 11-156, 11-163, 11-164,
12 11-167, 11-170.1, 14-103.05, 14-103.12, 14-104, 14-104.6,
13 14-105.7, 14-106, 14-107, 14-108, 14-110, 14-114, 14-119,
14 14-120, 14-121, 14-128, 14-131, 14-133, 15-113.1, 15-136,
15 15-136.3, 15-145, 15-148, 15-155, 15-165, 16-106, 16-129.1,
16 16-131.6, 16-132, 16-133, 16-133.1, 16-143, 16-143.1, 16-158,
17 17-116.3, 17-119, 17-122, and 18-128 and adding Sections
18 5-233.1, 8-226.7, 8-230.8, 8-230.9, 8-230.10, 9-121.14,
19 9-121.16, 12-127.6, 12-127.7, 14-104.12, 14-104.13, 14-105.8,
20 14-108.2c, 14-114.1, 15-134.6, 15-137.1, 16-134.1, 17-114.4,
21 and 17-119.2 as follows:
22 (40 ILCS 5/2-108) (from Ch. 108 1/2, par. 2-108)
23 Sec. 2-108. Salary. "Salary":
24 (1) For members of the General Assembly, the total
25 compensation paid to the member by the State for one year
26 of service, including the additional amounts, if any,
27 paid to the member as an officer pursuant to Section 1 of
28 "An Act in relation to the compensation and emoluments of
29 the members of the General Assembly", approved December
30 6, 1907, as now or hereafter amended.
31 (2) For the State executive officers specified in
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1 Section 2-105, the total compensation paid to the member
2 for one year of service.
3 (3) For members of the System who are participants
4 under Section 2-117.1, or who are serving as Clerk or
5 Assistant Clerk of the House of Representatives or
6 Secretary or Assistant Secretary of the Senate, the total
7 compensation paid to the member for one year of service,
8 but not to exceed the salary of the highest salaried
9 officer of the General Assembly.
10 (4) For members of the System who are serving as
11 Clerk or Assistant Clerk of the House of Representatives
12 or Secretary or Assistant Secretary of the Senate, the
13 total compensation paid to the member for one year of
14 service.
15 However, in the event that federal law results in any
16 participant receiving imputed income based on the value of
17 group term life insurance provided by the State, such imputed
18 income shall not be included in salary for the purposes of
19 this Article.
20 (Source: P.A. 86-27; 86-273; 86-1028; 86-1488.)
21 (40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
22 Sec. 2-108.1. Highest salary for annuity purposes.
23 (a) "Highest salary for annuity purposes" means
24 whichever of the following is applicable to the participant:
25 (1) For a participant who is a member of the
26 General Assembly on his or her last day of service: the
27 highest salary that is prescribed by law, on the
28 participant's last day of service, for a member of the
29 General Assembly who is not an officer; plus, if the
30 participant was elected or appointed to serve as an
31 officer of the General Assembly for 2 or more years and
32 has made contributions as required under subsection (d)
33 of Section 2-126, the highest additional amount of
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1 compensation prescribed by law, at the time of the
2 participant's service as an officer, for members of the
3 General Assembly who serve in that office.
4 (2) For a participant who holds one of the State
5 executive offices specified in Section 2-105 on his or
6 her last day of service: the highest salary prescribed by
7 law for service in that office on the participant's last
8 day of service.
9 (3) For a participant who is Clerk or Assistant
10 Clerk of the House of Representatives or Secretary or
11 Assistant Secretary of the Senate on his or her last day
12 of service: the salary received for service in that
13 capacity on the last day of service, but not to exceed
14 the highest salary (including additional compensation for
15 service as an officer) that is prescribed by law on the
16 participant's last day of service for the highest paid
17 officer of the General Assembly.
18 (4) For a participant who is a continuing
19 participant under Section 2-117.1 on his or her last day
20 of service: the salary received for service in that
21 capacity on the last day of service, but not to exceed
22 the highest salary (including additional compensation for
23 service as an officer) that is prescribed by law on the
24 participant's last day of service for the highest paid
25 officer of the General Assembly.
26 (b) The earnings limitations of subsection (a) apply to
27 earnings under any other participating system under the
28 Retirement Systems Reciprocal Act that are considered in
29 calculating a proportional annuity under this Article, except
30 in the case of a person who first became a member of this
31 System before August 22, 1994.
32 (c) In calculating the subsection (a) earnings
33 limitation to be applied to earnings under any other
34 participating system under the Retirement Systems Reciprocal
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1 Act for the purpose of calculating a proportional annuity
2 under this Article, the participant's last day of service
3 shall be deemed to mean the last day of service in any
4 participating system from which the person has applied for a
5 proportional annuity under the Retirement Systems Reciprocal
6 Act.
7 (Source: P.A. 90-655, eff. 7-30-98.)
8 (40 ILCS 5/2-110) (from Ch. 108 1/2, par. 2-110)
9 Sec. 2-110. Service.
10 (A) "Service" means the period beginning on the day when
11 a person first became a member, and ending on the date under
12 consideration, excluding all intervening periods of
13 nonmembership following resignation or expiration of any term
14 of office.
15 (B) "Service" includes:
16 (a) Military service during war by a person who
17 entered such service while a member, whether rendered
18 before or after the expiration of any term of office;
19 plus up to 2 years of military service that need not have
20 immediately followed service as a member, and need not
21 have been served during wartime, provided that the member
22 makes contributions to the System for such service (1) at
23 the rates provided in Section 2-126 based upon the
24 member's rate of compensation on the last date as a
25 participant prior to such military service, or on the
26 first date as a participant after such military service,
27 whichever is greater, plus (2) if payment is made on or
28 after May 1, 1993, an amount determined by the Board to
29 be equal to the employer's normal cost of the benefits
30 accrued for such military service, plus (3) interest at
31 the effective rate from the date of first membership in
32 the System to the date of payment.
33 The amendment to this subdivision (B)(a) made by
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1 this amendatory Act of 1993 shall apply to persons who
2 are active contributors to the System on or after
3 November 30, 1992. A person who was an active
4 contributor to the System on November 30, 1992 but is no
5 longer an active contributor may apply to purchase
6 military credit under this subdivision (B)(a) within 60
7 days after the effective date of this amendatory Act of
8 1993; if the person is an annuitant, the resulting
9 increase in annuity shall begin to accrue on the first
10 day of the month following the month in which the
11 required payment is received by the System. The change
12 in the required contribution for purchased military
13 credit made by this amendatory Act of 1993 shall not
14 entitle any person to a refund of contributions already
15 paid.
16 (b) Service as a judge of a court of this State,
17 but credit for such service is subject to the following
18 conditions: (1) such person shall have been a member for
19 at least 4 years and contributed to the System for
20 service as a judge subsequent to July 8, 1947, at the
21 rates herein provided, including interest at 2% per annum
22 to the date of payment based on the salary in effect
23 during such service; (2) the member was not an eligible
24 member of nor entitled to credit for such service in any
25 other retirement system in the State maintained in whole
26 or in part by public contributions; and (3) the last 4
27 years of service prior to retirement on annuity was
28 rendered while a member.
29 (c) Service as a participating employee under
30 Articles 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16,
31 17 or 18 of the Illinois Pension Code. Credit for such
32 service may be established by a member and, if permitted
33 by the credit transfer Section of the appropriate
34 Article, by a former member who is not yet an annuitant,
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1 and is subject to the following conditions: (1) that the
2 credits accrued under the above mentioned Articles have
3 been transferred to this System; and (2) that the member
4 has contributed to this System an amount equal to (A) the
5 amount by which the credits transferred to this System
6 under item (1) are less than the sum of (i) the
7 contribution rate in effect for participants at the date
8 of membership in this System multiplied by the salary
9 then in effect for members of the General Assembly for
10 each year of service for which credit is being
11 transferred, plus (ii) the State's share of the normal
12 cost of benefits under this System expressed as a percent
13 of payroll, as determined by the System's actuary as of
14 the date of the participant's membership in this System,
15 multiplied by the salary then in effect for members of
16 the General Assembly, for each year of service for which
17 credit is being transferred, plus (B) (iii) interest on
18 the amount determined under item (A) items (i) and (ii)
19 above at the rate of 6% per annum, compounded annually,
20 from the date of membership to the date of payment by the
21 participant, less (iv) the amount transferred to this
22 System on behalf of the participant on account of service
23 rendered while a participant under the above mentioned
24 Articles.
25 (d) Service, before October 1, 1975, as an officer
26 elected by the people of Illinois, for which creditable
27 service is required to be transferred from the State
28 Employees' Retirement System to this System by this
29 amendatory Act of 1975.
30 (e) Service rendered prior to January 1, 1964, as a
31 justice of the peace or police magistrate or as a civil
32 referee in the Municipal Court of Chicago, but credit for
33 such service may not be granted until the member has paid
34 to the System an amount equal to (1) the contribution
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1 rate for participants at the date of membership in this
2 System multiplied by the salary then in effect for
3 members of the General Assembly for each year of service
4 for which credit is being transferred, plus (2) the
5 State's share of the normal cost of benefits under this
6 System expressed as a percent of payroll, as determined
7 by the System's actuary as of the date of the
8 participant's membership in this System, multiplied by
9 the salary then in effect for members of the General
10 Assembly, for each year of service for which credit is
11 allowed, plus, (3) interest on (1) and (2) above at 6%
12 per annum compounded annually from the date of membership
13 to the date of payment by the member. However, a
14 participant may not receive more than 6 years of credit
15 for such service nor may any member receive credit under
16 this paragraph for service for which credit has been
17 granted in any other public pension fund or retirement
18 system in the State.
19 (f) Service before January 16, 1981, as an officer
20 elected by the people of Illinois, for which creditable
21 service is transferred from the State Employees'
22 Retirement System to this System.
23 (C) Service during any fraction of a month shall be
24 considered as a month of service.
25 Service includes the total period of time for which a
26 participant is elected as a member or officer, even though he
27 or she does not complete the term because of death,
28 resignation, judicial decision, or operation of law, provided
29 that the contributions required under this Article for such
30 entire period of office have been made by or on behalf of the
31 participant. In the case of a participant appointed or
32 elected to fill a vacancy, service includes the total period
33 from January 1 of the year in which his or her service
34 commences to the end of the term in which the vacancy occurs,
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1 provided the participant contributes in the year of
2 appointment an amount equal to the contributions that would
3 have been required had the participant received salary for
4 the entire year. The foregoing provisions relating to a
5 participant appointed or elected to fill a vacancy shall not
6 apply if the participant was a member of the other
7 legislative chamber at the time of appointment or election.
8 (D) Notwithstanding the other provisions of this
9 Section, if application to transfer or establish service
10 credit under paragraph (c) or (e) of subsection (B) of this
11 Section is made between January 1, 1992 and February 1, 1993,
12 the contribution required for such credit shall be an amount
13 equal to (1) the contribution rate in effect for participants
14 at the date of membership in this System multiplied by the
15 salary then in effect for members of the General Assembly for
16 each year of service for which credit is being granted, plus
17 (2) interest thereon at 6% per annum compounded annually,
18 from the date of membership to the date of payment by the
19 member, less (3) any amount transferred to this System on
20 behalf of the member on account of such service credit.
21 (Source: P.A. 86-27; 86-1028; 87-794; 87-1265.)
22 (40 ILCS 5/2-117) (from Ch. 108 1/2, par. 2-117)
23 Sec. 2-117. Participants - Election not to participate.
24 (a) Every person who was a member on November 1, 1947,
25 or in military service on such date, is subject to the
26 provisions of this system beginning upon such date, unless
27 prior to such date he or she filed with the board a written
28 notice of election not to participate.
29 Every person who becomes a member after November 1, 1947,
30 and who is then not a participant becomes a participant
31 beginning upon the date of becoming a member unless, within
32 24 months from that date, he or she has filed with the board
33 a written notice of election not to participate.
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1 (b) A member who has filed notice of an election not to
2 participate (and a former member who has not yet begun to
3 receive a retirement annuity under this Article) may become a
4 participant with respect to the period for which the member
5 elected not to participate upon filing with the board, before
6 July 1, 2002 April 1, 1993, a written rescission of the
7 election not to participate. Upon contributing an amount
8 equal to the contributions he or she would have made as a
9 participant from November 1, 1947, or the date of becoming a
10 member, whichever is later, to the date of becoming a
11 participant, with interest at the rate of 4% per annum until
12 the contributions are paid, the participant shall receive
13 credit for service as a member prior to the date of the
14 rescission, both before and after November 1, 1947. The
15 required contributions shall be made before commencement of
16 the retirement annuity; otherwise no credit for service prior
17 to the date of participation shall be granted.
18 (Source: P.A. 86-273; 87-1265.)
19 (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
20 Sec. 2-119.1. Automatic increase in retirement annuity.
21 (a) A participant who retires after June 30, 1967, and
22 who has not received an initial increase under this Section
23 before the effective date of this amendatory Act of 1991,
24 shall, in January or July next following the first
25 anniversary of retirement, whichever occurs first, and in the
26 same month of each year thereafter, but in no event prior to
27 age 60, have the amount of the originally granted retirement
28 annuity increased as follows: for each year through 1971, 1
29 1/2%; for each year from 1972 through 1979, 2%; and for 1980
30 and each year thereafter, 3%. Annuitants who have received
31 an initial increase under this subsection prior to the
32 effective date of this amendatory Act of 1991 shall continue
33 to receive their annual increases in the same month as the
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1 initial increase.
2 (b) This subsection (b) does not apply to persons who
3 qualify for and elect to receive the increase provided in
4 subsection (b-1).
5 Beginning January 1, 1990, for participants who remain in
6 service after attaining 20 years of creditable service, the
7 3% increases provided under subsection (a) shall begin to
8 accrue on the January 1 next following the date upon which
9 the participant (1) attains age 55, or (2) attains 20 years
10 of creditable service, whichever occurs later, and shall
11 continue to accrue while the participant remains in service;
12 such increases shall become payable on January 1 or July 1,
13 whichever occurs first, next following the first anniversary
14 of retirement. For any person who has service credit in the
15 System for the entire period from January 15, 1969 through
16 December 31, 1992, regardless of the date of termination of
17 service, the reference to age 55 in clause (1) of this
18 subsection (b) shall be deemed to mean age 50. For persons
19 who begin receiving a retirement annuity under this Article
20 on or after January 1, 2000, any increases provided under
21 this subsection (b) for years during which the participant
22 remains in active service shall accrue at the rate of 5%
23 rather than 3%.
24 (b-1) A person who is an active participant in the
25 System on or after July 1, 1999 may elect to receive a
26 one-time increase in retirement annuity, equal to 3% of the
27 originally granted retirement annuity for each full year of
28 the annuitant's service credit in excess of 20 years. This
29 increase is payable at the same time as the annuitant's
30 initial increase under subsection (a) of this Section and is
31 in addition to that increase.
32 (c) The foregoing provisions relating to automatic
33 increases are not applicable to a participant who retires
34 before having made contributions (at the rate prescribed in
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1 Section 2-126) for automatic increases for less than the
2 equivalent of one full year. However, in order to be
3 eligible for the automatic increases, such a participant may
4 make arrangements to pay to the System the amount required to
5 bring the total contributions for the automatic increase to
6 the equivalent of one year's contributions based upon his or
7 her last salary.
8 (d) A participant who terminated service prior to July
9 1, 1967, with at least 14 years of service is entitled to an
10 increase in retirement annuity beginning January, 1976, and
11 to additional increases in January of each year thereafter.
12 The initial increase shall be 1 1/2% of the originally
13 granted retirement annuity multiplied by the number of full
14 years that the annuitant was in receipt of such annuity
15 prior to January 1, 1972, plus 2% of the originally granted
16 retirement annuity for each year after that date. The
17 subsequent annual increases shall be at the rate of 2% of the
18 originally granted retirement annuity for each year through
19 1979 and at the rate of 3% for 1980 and thereafter.
20 (e) Beginning January 1, 1990, all automatic annual
21 increases payable under this Section shall be calculated as a
22 percentage of the total annuity payable at the time of the
23 increase, including previous increases granted under this
24 Article.
25 (Source: P.A. 86-273; 87-794; 87-1265.)
26 (40 ILCS 5/2-121) (from Ch. 108 1/2, par. 2-121)
27 Sec. 2-121. Survivor's annuity - conditions for payment.
28 (a) A survivor's annuity shall be payable to a surviving
29 spouse or eligible child (1) upon the death in service of a
30 participant with at least 2 years of service credit, or (2)
31 upon the death of an annuitant in receipt of a retirement
32 annuity, or (3) upon the death of a participant who
33 terminated service with at least 4 years of service credit.
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1 The change in this subsection (a) made by this amendatory
2 Act of 1995 applies to survivors of participants who die on
3 or after December 1, 1994, without regard to whether or not
4 the participant was in service on or after the effective date
5 of this amendatory Act of 1995.
6 (b) To be eligible for the survivor's annuity, the
7 spouse and the participant or annuitant must have been
8 married for a continuous period of at least one year
9 immediately preceding the date of death, but need not have
10 been married on the day of the participant's last termination
11 of service, regardless of whether such termination occurred
12 prior to the effective date of this amendatory Act of 1985.
13 (c) The annuity shall be payable beginning on the date
14 of a participant's death, or the first of the month following
15 an annuitant's death, if the spouse is then age 50 or over,
16 or beginning at age 50 if the spouse is then under age 50.
17 If an eligible child or children of the participant or
18 annuitant (or a child or children of the eligible spouse
19 meeting the criteria of item (1), (2), or (3) of subsection
20 (d) of this Section) also survive, and the child or children
21 are under the care of the eligible spouse, the annuity shall
22 begin as of the date of a participant's death, or the first
23 of the month following an annuitant's death, without regard
24 to the spouse's age.
25 The change to this subsection made by this amendatory Act
26 of 1998 (relating to children of an eligible spouse) applies
27 to the eligible spouse of a participant or annuitant who dies
28 on or after the effective date of this amendatory Act,
29 without regard to whether the participant or annuitant is in
30 service on or after that effective date.
31 (d) For the purposes of this Section and Section
32 2-121.1, "eligible child" means a child of the deceased
33 participant or annuitant who is at least one of the
34 following:
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1 (1) unmarried and under the age of 18;
2 (2) unmarried, a full-time student, and under the
3 age of 22;
4 (3) dependent by reason of physical or mental
5 disability.
6 The inclusion of unmarried students under age 22 in the
7 calculation of survivor's annuities by this amendatory Act of
8 1991 shall apply to all eligible students beginning January
9 1, 1992, without regard to whether the deceased participant
10 or annuitant was in service on or after the effective date of
11 this amendatory Act of 1991.
12 Adopted children shall have the same status as children
13 of the participant or annuitant, but only if the proceedings
14 for adoption are commenced at least one year prior to the
15 date of the participant's or annuitant's death.
16 (e) Remarriage of a surviving spouse prior to attainment
17 of age 55 shall disqualify the surviving spouse from the
18 receipt of a survivor's annuity until July 6, 2000, if the
19 remarriage occurs before the effective date of this
20 amendatory Act of the 91st General Assembly. A surviving
21 spouse whose survivor's annuity has been terminated due to
22 remarriage may apply for reinstatement of that annuity. The
23 reinstated annuity shall begin to accrue on July 6, 2000,
24 except that if, on July 6, 2000, the annuity is payable to an
25 eligible surviving child, payment of the annuity to the
26 surviving spouse shall not be reinstated until the annuity is
27 no longer payable to any eligible surviving child. The
28 reinstated annuity shall include any one-time or annual
29 increases received prior to the date of termination, as well
30 as any increases that would otherwise have accrued from the
31 date of termination to the date of reinstatement. An
32 eligible surviving spouse whose expectation of receiving a
33 survivor's annuity was lost due to remarriage before
34 attainment of age 50 shall also be entitled to reinstatement
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1 under this subsection, but the resulting survivor's annuity
2 shall not begin to accrue sooner than upon the surviving
3 spouse's attainment of age 50.
4 The changes made to this subsection by Public Act 91-887
5 and this amendatory Act of the 92nd 91st General Assembly
6 (pertaining to remarriage prior to age 55) apply without
7 regard to whether the deceased participant or annuitant was
8 in service on or after the effective date of either this
9 amendatory Act.
10 (Source: P.A. 90-766, eff. 8-14-98; 91-887, eff. 7-6-00.)
11 (40 ILCS 5/2-123) (from Ch. 108 1/2, par. 2-123)
12 Sec. 2-123. Refunds.
13 (a) A participant who ceases to be a member, other than
14 an annuitant, shall, upon written request, receive a refund
15 of his or her total contributions, without interest. The
16 refund shall include the additional contributions for the
17 automatic increase in retirement annuity. By accepting the
18 refund, a participant forfeits all accrued rights and
19 benefits in the System and loses credit for all service.
20 However, if he or she again becomes a member, he or she may
21 resume status as a participant and reestablish any forfeited
22 service credit by paying to the System the full amount
23 refunded, together with interest at 4% per annum from the
24 time the refund is paid to the date the member again becomes
25 a participant.
26 A former member of the General Assembly may reestablish
27 any service credit forfeited by acceptance of a refund by
28 paying to the System on or before July 1, 2002 February 1,
29 1993, the full amount refunded, together with interest at 4%
30 per annum from the date of payment of the refund to the date
31 of repayment.
32 When a member or former member owes money to the System,
33 interest at the rate of 4% per annum shall accrue and be
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1 payable on such amounts owed beginning on the date of
2 termination of service as a member until the contributions
3 due have been paid in full.
4 (b) A participant who (1) has elected to cease making
5 contributions for survivor's annuity under subsection (b) of
6 Section 2-126, (2) has no eligible survivor's annuity
7 beneficiary upon becoming an annuitant, or (3) terminates
8 service with less than 8 years of service is entitled to a
9 refund of the contributions for a survivor's annuity, without
10 interest. If the person later marries, a survivor's annuity
11 shall not be payable upon his or her death, unless the amount
12 of the refund is repaid to the System, together with interest
13 at the rate of 4% per year from the date of refund to the
14 date of repayment.
15 (c) If at the date of retirement or death of a
16 participant who served as an officer of the General Assembly,
17 the total period of such service is less than 4 years, the
18 additional contributions made by such member on the
19 additional salary as an officer shall be refunded unless the
20 participant served as an officer for at least 2 years and has
21 contributed the amount he or she would have contributed if he
22 or she had served as an officer for 4 years as provided in
23 Section 2-126.
24 (d) Upon the termination of the last survivor's annuity
25 payable to a survivor of a deceased participant, the excess,
26 if any, of the total contributions made by the participant
27 for retirement and survivor's annuity, without interest, over
28 the total amount of retirement and survivor's annuity
29 payments received by the participant and the participant's
30 survivors shall be refunded upon request:
31 (i) if there was a surviving spouse of the deceased
32 participant who was eligible for a survivor's annuity, to
33 the designated beneficiary of that spouse or, if the
34 designated beneficiary is deceased or there is no
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1 designated beneficiary, to that spouse's estate;
2 (ii) if there was no eligible surviving spouse of
3 the deceased participant, to the designated beneficiary
4 of the deceased participant or, if the designated
5 beneficiary is deceased or there is no designated
6 beneficiary, to the deceased participant's estate.
7 (e) Upon the death of a participant, if a survivor's
8 annuity is not payable under this Article, a beneficiary
9 designated by the participant shall be entitled to a refund
10 of all contributions made by the participant. If the
11 participant has not designated a refund beneficiary, the
12 surviving spouse shall be entitled to the refund of
13 contributions; if there is no surviving spouse, the
14 contributions shall be refunded to the participant's
15 surviving children, if any, and if no children survive, the
16 refund payment shall be made to the participant's estate.
17 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
18 (40 ILCS 5/3-110.6) (from Ch. 108 1/2, par. 3-110.6)
19 Sec. 3-110.6. Transfer to Article 14 System.
20 (a) Any active member of the State Employees' Retirement
21 System who is an investigator for the Office of the State's
22 Attorneys Appellate Prosecutor, an investigator for the
23 Office of the Attorney General, or a controlled substance
24 inspector may apply for transfer of some or all of his or her
25 creditable service accumulated in any police pension fund
26 under this Article to the State Employees' Retirement System
27 in accordance with Section 14-110. The creditable service
28 shall be transferred only upon payment by the police pension
29 fund to the State Employees' Retirement System of an amount
30 equal to:
31 (1) the amounts accumulated to the credit of the
32 applicant for the service to be transferred on the books
33 of the fund on the date of transfer; and
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1 (2) employer contributions in an amount equal to
2 the amount determined under subparagraph (1); and
3 (3) any interest paid by the applicant in order to
4 reinstate that service.
5 Participation in the police pension fund with respect to the
6 credits transferred shall terminate on the date of transfer.
7 (b) Any such investigator or inspector may reinstate
8 service which was terminated by receipt of a refund, by
9 paying to the police pension fund the amount of the refund
10 with interest thereon at the rate of 6% per year, compounded
11 annually, from the date of refund to the date of payment.
12 (Source: P.A. 90-32, eff. 6-27-97.)
13 (40 ILCS 5/5-154) (from Ch. 108 1/2, par. 5-154)
14 Sec. 5-154. Duty disability benefit; child's disability
15 benefit.
16 (a) An active policeman who becomes disabled on or after
17 the effective date as the result of injury incurred on or
18 after such date in the performance of an act of duty, has a
19 right to receive duty disability benefit during any period of
20 such disability for which he does not have a right to receive
21 salary, equal to 75% of his salary, as salary is defined in
22 this Article, at the time the disability is allowed; or in
23 the case of a policeman on duty disability who returns to
24 active employment at any time for a period of at least 2
25 years and is again disabled from the same cause or causes,
26 75% of his salary, as salary is defined in this Article, at
27 the time disability is allowed; provided, however, that:
28 (i) If the disability resulted from any physical
29 defect or mental disorder or any disease which existed at
30 the time the injury was sustained, or if the disability
31 is less than 50% of total disability for any service of a
32 remunerative character, the duty disability benefit shall
33 be 50% of salary as defined in this Article.
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1 (ii) However, Beginning January 1, 1996, no duty
2 disability benefit that has been payable under this
3 Section for at least 10 years shall be less than 50% of
4 the current salary attached from time to time to the rank
5 held by the policeman at the time of removal from the
6 police department payroll, regardless of whether that
7 removal occurred before the effective date of this
8 amendatory Act of 1995. Beginning on January 1, 2000, no
9 duty disability benefit that has been payable under this
10 Section for at least 7 years shall be less than 60% of
11 the current salary attached from time to time to the rank
12 held by the policeman at the time of removal from the
13 police department payroll, regardless of whether that
14 removal occurred before the effective date of this
15 amendatory Act of the 92nd General Assembly.
16 (iii) If the Board finds that the disability of the
17 policeman is of such a nature as to permanently render
18 him totally disabled for any service of a remunerative
19 character, the duty disability benefit shall be 75% of
20 the current salary attached from time to time to the rank
21 held by the policeman at the time of removal from the
22 police department payroll. In the case of a policeman
23 receiving a duty disability benefit under this Section on
24 the effective date of this amendatory Act of the 92nd
25 General Assembly, the increase in benefit provided by
26 this amendatory Act, if any, shall begin to accrue as of
27 the date that the Board makes the required finding of
28 permanent total disability, regardless of whether removal
29 from the payroll occurred before the effective date of
30 this amendatory Act.
31 (b) The policeman shall also have a right to child's
32 disability benefit of $100 $30 per month for each unmarried
33 child, the issue of the policeman, less than age 18, but the
34 total amount of child's disability benefit shall not exceed
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1 25% of his salary as defined in this Article. The increase
2 in child's disability benefit provided by this amendatory Act
3 of the 92nd General Assembly applies beginning January 1,
4 2000 to all such benefits payable on or after that date,
5 regardless of whether the disabled policeman is in active
6 service on or after the effective date of this amendatory Act
7 of the 92nd General Assembly.
8 (c) Duty disability benefit shall be payable until the
9 policeman becomes age 63 or would have been retired by
10 operation of law, whichever is later, and child's disability
11 benefit shall be paid during any such period of disability
12 until the child attains age 18. Thereafter the policeman
13 shall receive the annuity provided in accordance with the
14 other provisions of this Article.
15 (d) A policeman who suffers a heart attack during the
16 performance and discharge of his or her duties as a policeman
17 shall be considered injured in the performance of an act of
18 duty and shall be eligible for all benefits that the City
19 provides for police officers injured in the performance of an
20 act of duty. This subsection (d) is a restatement of
21 existing law and applies without regard to whether the
22 policeman is in service on or after the effective date of
23 Public Act 89-12 or this amendatory Act of 1996.
24 (Source: P.A. 89-12, eff. 4-20-95; 89-643, eff. 8-9-96.)
25 (40 ILCS 5/5-154.1) (from Ch. 108 1/2, par. 5-154.1)
26 Sec. 5-154.1. Occupational disease disability benefit.
27 (a) The General Assembly finds that service in the
28 police department requires police officers in times of stress
29 and danger to perform unusual tasks; that police officers are
30 subject to exposure to extreme heat or extreme cold in
31 certain seasons while performing their duties; and that these
32 conditions exist and arise out of or in the course of
33 employment.
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1 (b) Any police officer with at least 10 years of service
2 who suffers a heart attack or any other disabling heart
3 disease but is not entitled to a benefit under Section 5-154
4 is entitled to receive an occupational disease disability
5 benefit under this Section. The occupational disease
6 disability benefit shall be 65% of the salary attached to the
7 rank held by the police officer in the police service at the
8 time of his or her removal from the police department
9 payroll. However, no occupational disease disability benefit
10 that has been payable under this Section for at least 10
11 years shall be less than 50% of the current salary attached
12 from time to time to the rank held by the police officer at
13 the time of his or her removal from the police department
14 payroll.
15 The police officer is also entitled to a child's
16 disability benefit of $100 $50 per month for each natural or
17 legally adopted unmarried child less than age 18 dependent
18 upon the police officer for support. The total child's
19 disability benefit shall not exceed 10% of the police
20 officer's salary at the time of removal from the police
21 department payroll. The increase in child's disability
22 benefit provided by this amendatory Act of the 92nd General
23 Assembly applies beginning January 1, 2000 to all such
24 benefits payable on or after that date, regardless of whether
25 the disabled policeman is in active service on or after the
26 effective date of this amendatory Act of the 92nd General
27 Assembly.
28 The occupational disease disability benefit is payable
29 during the period of disability until the police officer
30 attains age 63 or compulsory retirement age, whichever occurs
31 later; thereafter the police officer shall receive the
32 benefits provided under the other provisions of this Article.
33 If the police officer ceases to be disabled, the occupational
34 disease disability benefit shall cease.
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1 The child's disability benefit is payable during the
2 period of disability until the child attains age 18 or
3 marries, whichever event occurs first, except that a benefit
4 payable on account of a child under this Section shall not be
5 reduced or terminated by reason of the child's attainment of
6 age 18 if he or she is then dependent by reason of a physical
7 or mental disability, but shall continue to be paid as long
8 as the child's dependency and disability continue.
9 (Source: P.A. 89-12, eff. 4-20-95; 89-643, eff. 8-9-96.)
10 (40 ILCS 5/5-157) (from Ch. 108 1/2, par. 5-157)
11 Sec. 5-157. Administration of disability benefits.
12 (a) If a policeman who is granted duty or ordinary
13 disability benefit refuses to submit to examination by a
14 physician appointed by the board, he shall have no further
15 right to receive the benefit.
16 (b) A policeman who has withdrawn from service while
17 disabled and entered upon annuity prior to the effective
18 date, and who has thereafter been reinstated as a policeman,
19 shall have no right to ordinary disability benefit in excess
20 of the amount previously received unless he serves at least
21 one year after such reinstatement. This provision shall
22 apply throughout the duration of any disability incurred by
23 the policeman within one year after his reinstatement
24 resulting from any cause other than injury incurred in the
25 performance of an act of duty.
26 (c) Until the effective date of this amendatory Act of
27 the 92nd General Assembly, a policeman who assumes regular
28 employment for compensation, while in receipt of ordinary or
29 duty disability benefits, shall not be entitled to receive
30 any amount of such disability benefits which, when added to
31 his compensation for such employment during disability, would
32 exceed 150% of the rate of salary which would be paid to him
33 if he were working in his regularly appointed civil service
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1 position as a policeman. The changes made to this Section by
2 Public this amendatory Act 90-766 of 1998 are not limited to
3 persons in service on or after the effective date of that
4 this amendatory Act.
5 Beginning on the effective date of this amendatory Act of
6 the 92nd General Assembly, the reduction of disability
7 benefits due to compensation for employment previously
8 imposed under this subsection (c) no longer applies to any
9 person receiving a disability benefit under this Article,
10 without regard to whether the person is in service on or
11 after that date. The removal of this limitation by this
12 amendatory Act is not retroactive and does not entitle any
13 person to the restoration of amounts previously reduced or
14 withheld under this subsection.
15 (d) Disability benefit shall not be paid for any part of
16 time for which a disabled policeman shall receive any part of
17 his salary.
18 (e) Except as herein otherwise provided, disability
19 benefit shall not be paid for any disability based upon or
20 caused by any mental or physical defect which the policeman
21 had at the time he entered the police service.
22 (f) Disability benefit shall not be allowed to any
23 policeman who re-enters the public service in any capacity
24 where his salary is payable in whole or in part by taxes
25 levied upon taxable property in the city in which this
26 Article is in effect, or out of special revenues of any
27 department of the city. The disability benefit shall be
28 suspended during the period he is in the public service for
29 compensation, and shall be resumed when he withdraws from
30 such service.
31 (g) Any disability benefit paid in violation of this
32 Section or of this Article shall be construed to have been
33 paid in error, and the amounts so paid shall be charged as a
34 debit in the account of any person to whom the same was paid
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1 and shall be deducted from any moneys thereafter payable to
2 such person out of this fund, or to the widow, heirs or
3 estate of such person.
4 (Source: P.A. 90-766, eff. 8-14-98.)
5 (40 ILCS 5/5-167.1) (from Ch. 108 1/2, par. 5-167.1)
6 Sec. 5-167.1. Automatic increase in annuity; retirement
7 from service after September 1, 1967.
8 (a) A policeman who retires from service after September
9 1, 1967 with at least 20 years of service credit shall, upon
10 either the first of the month following the first anniversary
11 of his date of retirement if he is age 60 (age 55 if born
12 before January 1, 1950 1945) or over on that anniversary
13 date, or upon the first of the month following his attainment
14 of age 60 (age 55 if born before January 1, 1950 1945) if it
15 occurs after the first anniversary of his retirement date,
16 have his then fixed and payable monthly annuity increased by
17 1 1/2% and such first fixed annuity as granted at retirement
18 increased by an additional 1 1/2% in January of each year
19 thereafter up to a maximum increase of 30%. Beginning
20 January 1, 1983 for policemen born before January 1, 1930,
21 and beginning January 1, 1988 for policemen born on or after
22 January 1, 1930 but before January 1, 1940, and beginning
23 January 1, 1996 for policemen born on or after January 1,
24 1940 but before January 1, 1945, and beginning January 1,
25 2001 for policemen born on or after January 1, 1945 but
26 before January 1, 1950, such increases shall be 3% and such
27 policemen shall not be subject to the 30% maximum increase.
28 Any policeman born before January 1, 1945 who qualifies
29 for a minimum annuity and retires after September 1, 1967 but
30 has not received the initial increase under this subsection
31 before January 1, 1996 is entitled to receive the initial
32 increase under this subsection on (1) January 1, 1996, (2)
33 the first anniversary of the date of retirement, or (3)
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1 attainment of age 55, whichever occurs last. The changes to
2 this Section made by Public Act 89-12 this amendatory Act of
3 1995 apply beginning January 1, 1996 and without regard to
4 whether the policeman or annuitant terminated service before
5 the effective date of that this amendatory Act of 1995.
6 Any policeman born before January 1, 1950 who qualifies
7 for a minimum annuity and retires after September 1, 1967 but
8 has not received the initial increase under this subsection
9 before January 1, 2001 is entitled to receive the initial
10 increase under this subsection on (1) January 1, 2001, (2)
11 the first anniversary of the date of retirement, or (3)
12 attainment of age 55, whichever occurs last. The changes to
13 this Section made by this amendatory Act of the 92nd General
14 Assembly apply without regard to whether the policeman or
15 annuitant terminated service before the effective date of
16 this amendatory Act.
17 (b) Subsection (a) of this Section is not applicable to
18 an employee receiving a term annuity.
19 (c) To help defray the cost of such increases in
20 annuity, there shall be deducted, beginning September 1,
21 1967, from each payment of salary to a policeman, 1/2 of 1%
22 of each salary payment concurrently with and in addition to
23 the salary deductions otherwise made for annuity purposes.
24 The city, in addition to the contributions otherwise made
25 by it for annuity purposes under other provisions of this
26 Article, shall make matching contributions concurrently with
27 such salary deductions.
28 Each such 1/2 of 1% deduction from salary and each such
29 contribution by the city of 1/2 of 1% of salary shall be
30 credited to the Automatic Increase Reserve, to be used to
31 defray the cost of the 1 1/2% annuity increase provided by
32 this Section. Any balance in such reserve as of the
33 beginning of each calendar year shall be credited with
34 interest at the rate of 3% per annum.
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1 Such deductions from salary and city contributions shall
2 continue while the policeman is in service.
3 The salary deductions provided in this Section are not
4 subject to refund, except to the policeman himself, in any
5 case in which a policeman withdraws prior to qualification
6 for minimum annuity and applies for refund or applies for
7 annuity, and also where a term annuity becomes payable. In
8 such cases, the total of such salary deductions shall be
9 refunded to the policeman, without interest, and charged to
10 the Automatic Increase Reserve.
11 (Source: P.A. 89-12, eff. 4-20-95.)
12 (40 ILCS 5/5-212) (from Ch. 108 1/2, par. 5-212)
13 Sec. 5-212. Computation of service. In computing the
14 service rendered by a policeman prior to the effective date,
15 the following periods shall be counted, in addition to all
16 periods during where he performed the duties of his position,
17 as periods of service for annuity purposes only: all periods
18 of (a) vacation; (b) leave of absence with whole or part pay;
19 (c) leave of absence without pay on account of disability;
20 and (d) leave of absence during which the policeman was
21 engaged in the military or naval service of the United States
22 of America. Service credit shall not be allowed for a
23 policeman in receipt of a pension on account of disability
24 from any pension fund superseded by this fund.
25 In computing the service rendered by a policeman on or
26 after the effective date, the following periods shall be
27 counted, in addition to all periods during which he performed
28 the duties of his position, as periods of service for annuity
29 purposes only: all periods of (a) vacation; (b) leave of
30 absence with whole or part pay; (c) leave of absence during
31 which the policeman was engaged in the military or naval
32 service of the United States of America; (d) time that the
33 policeman was engaged in the military or naval service of the
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1 United States of America, during which he was passed over on
2 any eligible list posted from an entrance examination, due to
3 the fact that he was in such military or naval service at the
4 time he was called for appointment to the Police Department,
5 to be computed from the date he was passed over on any
6 eligible list and would have been first sworn in as a
7 policeman had he not been engaged in the military or naval
8 service of the United States of America, until the date of
9 his discharge from such military or naval service; provided
10 that such policeman shall pay into this Fund the same amount
11 that would have been deducted from his salary had he been a
12 policeman during the aforementioned portion of such military
13 or naval service; (e) disability for which the policeman
14 receives any disability benefit; (f) disability for which the
15 policeman receives whole or part pay; and (g) service for
16 which credits and creditable service have been transferred to
17 this Fund under Section 9-121.1, 14-105.1 or 15-134.3 of this
18 Code.
19 In computing service on or after the effective date for
20 ordinary disability benefit, all periods described in the
21 preceding paragraph, except any such period for which a
22 policeman receives ordinary disability benefit, shall be
23 counted as periods of service.
24 In computing service for any of the purposes of this
25 Article, no credit shall be given for any period during which
26 a policeman was not rendering active service because of his
27 discharge from the service, unless proceedings to test the
28 legality of the discharge are filed in a court of competent
29 jurisdiction within one year from the date of discharge and a
30 final judgment is entered therein declaring the discharge
31 illegal.
32 No overtime or extra service shall be included in
33 computing service of a policeman and not more than one year
34 or a fractional part thereof of service shall be allowed for
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1 service rendered during any calendar year.
2 In computing service for any of the purposes of this
3 Article, credit shall be given for any periods prior to
4 January 10, 2001 9, 1997, during which a policeman who is a
5 member of the General Assembly is on leave of absence or is
6 otherwise authorized to be absent from duty to enable him or
7 her to perform legislative duties, notwithstanding any
8 reduction in salary for such periods and notwithstanding that
9 the contributions paid by the policeman were based on a
10 reduced salary rather than the full amount of salary attached
11 to his or her career service rank.
12 (Source: P.A. 89-136, eff. 7-14-95.)
13 (40 ILCS 5/5-233.1 new)
14 Sec. 5-233.1. Transfer of creditable service to Article
15 8 or 11 fund. A person who (i) is an active participant in a
16 fund established under Article 8 or 11 of this Code and (ii)
17 has at least 10 and no more than 22 years of creditable
18 service in this Fund may, within the 90 days following the
19 effective date of this Section, apply for transfer of of his
20 or her credits and creditable service accumulated in this
21 Fund to the Article 8 or 11 fund. At the time of the
22 transfer, this Fund shall pay to the Article 8 or 11 fund an
23 amount consisting of:
24 (1) the amounts credited to the applicant through
25 employee contributions for the service to be transferred,
26 including interest; and
27 (2) the corresponding municipality credits,
28 including interest, on the books of the Fund on the date
29 of transfer.
30 Participation in this Fund with respect to the credits
31 transferred shall terminate on the date of transfer.
32 (40 ILCS 5/5-236) (from Ch. 108 1/2, par. 5-236)
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1 Sec. 5-236. Transfer to Article 14.
2 (a) Until January 31, 1994, any active member of the
3 State Employees' Retirement System who is a State policeman
4 or investigator for the Secretary of State may apply for
5 transfer of his creditable service accumulated under this
6 Article to the State Employees' Retirement System. At the
7 time of the transfer the Fund shall pay to the State
8 Employees' Retirement System an amount equal to:
9 (1) the amounts accumulated to the credit of the
10 applicant on the books of the Fund on the date of
11 transfer; and
12 (2) the corresponding municipality credits,
13 including interest, on the books of the Fund on the date
14 of transfer; and
15 (3) any interest paid by the applicant in order to
16 reinstate service.
17 Participation in this Fund shall terminate on the date of
18 transfer.
19 (b) Until January 31, 1994, any such State policeman or
20 investigator for the Secretary of State may reinstate service
21 that was terminated by receipt of a refund, by paying to the
22 Fund the amount of the refund with interest thereon at the
23 rate of 6% per year, compounded annually, from the date of
24 refund to the date of payment.
25 (c) Within 30 days after the effective date of this
26 amendatory Act of 1993, any active member of the State
27 Employees' Retirement System who was earning eligible
28 creditable service under subdivision (b)(12) of Section
29 14-110 on January 1, 1992 and who has at least 17 years of
30 creditable service under this Article may apply for transfer
31 of his creditable service accumulated under this Article to
32 the State Employees' Retirement System. At the time of the
33 transfer the Fund shall pay to the State Employees'
34 Retirement System an amount equal to:
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1 (1) the amounts accumulated to the credit of the
2 applicant on the books of the Fund on the date of
3 transfer; and
4 (2) the corresponding municipality credits,
5 including interest, on the books of the Fund on the date
6 of transfer.
7 Participation in this Fund shall terminate on the date of
8 transfer.
9 (d) Any active member of the State Employees' Retirement
10 System who is an investigator for the Office of the Attorney
11 General may apply for transfer of all or part of his or her
12 creditable service accumulated under this Article to the
13 State Employees' Retirement System in accordance with Section
14 14-110. At the time of the transfer the Fund shall pay to
15 the State Employees' Retirement System an amount equal to:
16 (1) the amounts accumulated to the credit of the
17 applicant for the service to be transferred on the books
18 of the Fund on the date of transfer; and
19 (2) the corresponding municipality credits,
20 including interest, on the books of the Fund on the date
21 of transfer; and
22 (3) any interest paid by the applicant in order to
23 reinstate that service credit.
24 Participation in this Fund with respect to the credits
25 transferred shall terminate on the date of transfer.
26 (e) Any such investigator for the Office of the Attorney
27 General may reinstate service that was terminated by receipt
28 of a refund, by paying to the Fund the amount of the refund
29 plus interest at the rate of 6% per year, compounded
30 annually, from the date of the refund to the date of payment.
31 (Source: P.A. 86-1488; 87-1265.)
32 (40 ILCS 5/6-140) (from Ch. 108 1/2, par. 6-140)
33 Sec. 6-140. Death in the line of duty.
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1 (a) The annuity for the widow of a fireman whose death
2 results from the performance of an act or acts of duty shall
3 be an amount equal to 50% of the current annual salary
4 attached to the classified position to which the fireman was
5 certified at the time of his death and 75% thereof after
6 December 31, 1972., and it shall be payable to the widow
7 until the fireman, had he lived, would have attained the age
8 prescribed for compulsory retirement.
9 Thereafter the widow shall receive annuity of an amount
10 equal to 40% of the current annual salary attached to the
11 classified position to which the fireman was certified at the
12 time of his death. The benefits provided in this Section
13 shall be paid to all widows who qualified to receive said
14 benefits before the effective date of this amendatory Act and
15 to those widows who qualify after the effective date.
16 Unless the performance of an act or acts of duty results
17 directly in the death of the fireman, or prevents him from
18 subsequently resuming active service in the fire department,
19 the annuity herein provided shall not be paid; nor shall such
20 annuities be paid unless the widow was the wife of the
21 fireman at the time of the act or acts of duty which resulted
22 in his death.
23 (b) The changes made to this Section by this amendatory
24 Act of the 92nd General Assembly apply without regard to
25 whether the deceased fireman was in service on or after the
26 effective date of this amendatory Act. In the case of a
27 widow receiving an annuity under this Section that has been
28 reduced to 40% of current salary because the fireman, had he
29 lived, would have attained the age prescribed for compulsory
30 retirement, the annuity shall be restored on January 1, 2001
31 to the amount provided in subsection (a).
32 (Source: P.A. 77-1580.)
33 (40 ILCS 5/7-132) (from Ch. 108 1/2, par. 7-132)
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1 Sec. 7-132. Municipalities, instrumentalities and
2 participating instrumentalities included and effective dates.
3 (A) Municipalities and their instrumentalities.
4 (a) The following described municipalities, but not
5 including any with more than 1,000,000 inhabitants, and the
6 instrumentalities thereof, shall be included within and be
7 subject to this Article beginning upon the effective dates
8 specified by the Board:
9 (1) Except as to the municipalities and
10 instrumentalities thereof specifically excluded under
11 this Article, every county shall be subject to this
12 Article, and all cities, villages and incorporated towns
13 having a population in excess of 5,000 inhabitants as
14 determined by the last preceding decennial or subsequent
15 federal census, shall be subject to this Article
16 following publication of the census by the Bureau of the
17 Census. Within 90 days after publication of the census,
18 the Board shall notify any municipality that has become
19 subject to this Article as a result of that census, and
20 shall provide information to the corporate authorities of
21 the municipality explaining the duties and consequences
22 of participation. The notification shall also include a
23 proposed date upon which participation by the
24 municipality will commence.
25 However, for any city, village or incorporated town
26 that attains a population over 5,000 inhabitants after
27 having provided social security coverage for its
28 employees under the Social Security Enabling Act,
29 participation under this Article shall not be mandatory
30 but may be elected in accordance with subparagraph (3) or
31 (4) of this paragraph (a), whichever is applicable.
32 (2) School districts, other than those specifically
33 excluded under this Article, shall be subject to this
34 Article, without election, with respect to all employees
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1 thereof.
2 (3) Towns and all other bodies politic and
3 corporate which are formed by vote of, or are subject to
4 control by, the electors in towns and are located in
5 towns which are not participating municipalities on the
6 effective date of this Act, may become subject to this
7 Article by election pursuant to Section 7-132.1.
8 (4) Any other municipality (together with its
9 instrumentalities), other than those specifically
10 excluded from participation and those described in
11 paragraph (3) above, may elect to be included either by
12 referendum under Section 7-134 or by the adoption of a
13 resolution or ordinance by its governing body. A copy of
14 such resolution or ordinance duly authenticated and
15 certified by the clerk of the municipality or other
16 appropriate official of its governing body shall
17 constitute the required notice to the board of such
18 action.
19 (b) A municipality that is about to begin participation
20 shall submit to the Board an application to participate, in a
21 form acceptable to the Board, not later than 90 days prior to
22 the proposed effective date of participation. The Board
23 shall act upon the application within 90 days, and if it
24 finds that the application is in conformity with its
25 requirements and the requirements of this Article,
26 participation by the applicant shall commence on a date
27 acceptable to the municipality and specified by the Board,
28 but in no event more than one year from the date of
29 application.
30 (c) A participating municipality which succeeds to the
31 functions of a participating municipality which is dissolved
32 or terminates its existence shall assume and be transferred
33 the net accumulation balance in the municipality reserve and
34 the municipality account receivable balance of the terminated
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1 municipality.
2 (d) In the case of a Veterans Assistance Commission
3 whose employees were being treated by the Fund on January 1,
4 1990 as employees of the county served by the Commission, the
5 Fund may continue to treat the employees of the Veterans
6 Assistance Commission as county employees for the purposes of
7 this Article, unless the Commission becomes a participating
8 instrumentality in accordance with subsection (B) of this
9 Section.
10 (B) Participating instrumentalities.
11 (a) The participating instrumentalities designated in
12 paragraph (b) of this subsection shall be included within and
13 be subject to this Article if:
14 (1) an application to participate, in a form
15 acceptable to the Board and adopted by a two-thirds vote
16 of the governing body, is presented to the Board not
17 later than 90 days prior to the proposed effective date;
18 and
19 (2) the Board finds that the application is in
20 conformity with its requirements, that the applicant has
21 reasonable expectation to continue as a political entity
22 for a period of at least 10 years and has the prospective
23 financial capacity to meet its current and future
24 obligations to the Fund, and that the actuarial soundness
25 of the Fund may be reasonably expected to be unimpaired
26 by approval of participation by the applicant.
27 The Board shall notify the applicant of its findings
28 within 90 days after receiving the application, and if the
29 Board approves the application, participation by the
30 applicant shall commence on the effective date specified by
31 the Board.
32 (b) The following participating instrumentalities, so
33 long as they meet the requirements of Section 7-108 and the
34 area served by them or within their jurisdiction is not
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1 located entirely within a municipality having more than one
2 million inhabitants, may be included hereunder:
3 i. Township School District Trustees.
4 ii. Multiple County and Consolidated Health
5 Departments created under Division 5-25 of the Counties
6 Code or its predecessor law.
7 iii. Public Building Commissions created under the
8 Public Building Commission Act, and located in counties
9 of less than 1,000,000 inhabitants.
10 iv. A multitype, consolidated or cooperative
11 library system created under the Illinois Library System
12 Act. Any library system created under the Illinois
13 Library System Act that has one or more predecessors that
14 participated in the Fund may participate in the Fund upon
15 application. The Board shall establish procedures for
16 implementing the transfer of rights and obligations from
17 the predecessor system to the successor system.
18 v. Regional Planning Commissions created under
19 Division 5-14 of the Counties Code or its predecessor
20 law.
21 vi. Local Public Housing Authorities created under
22 the Housing Authorities Act, located in counties of less
23 than 1,000,000 inhabitants.
24 vii. Illinois Municipal League.
25 viii. Northeastern Illinois Metropolitan Area
26 Planning Commission.
27 ix. Southwestern Illinois Metropolitan Area
28 Planning Commission.
29 x. Illinois Association of Park Districts.
30 xi. Illinois Supervisors, County Commissioners and
31 Superintendents of Highways Association.
32 xii. Tri-City Regional Port District.
33 xiii. An association, or not-for-profit
34 corporation, membership in which is authorized under
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1 Section 85-15 of the Township Code.
2 xiv. Drainage Districts operating under the
3 Illinois Drainage Code.
4 xv. Local mass transit districts created under the
5 Local Mass Transit District Act.
6 xvi. Soil and water conservation districts created
7 under the Soil and Water Conservation Districts Law.
8 xvii. Commissions created to provide water supply
9 or sewer services or both under Division 135 or Division
10 136 of Article 11 of the Illinois Municipal Code.
11 xviii. Public water districts created under the
12 Public Water District Act.
13 xix. Veterans Assistance Commissions established
14 under Section 9 of the Military Veterans Assistance Act
15 that serve counties with a population of less than
16 1,000,000.
17 xx. The governing body of an entity, other than a
18 vocational education cooperative, created under an
19 intergovernmental cooperative agreement established
20 between participating municipalities under the
21 Intergovernmental Cooperation Act, which by the terms of
22 the agreement is the employer of the persons performing
23 services under the agreement under the usual common law
24 rules determining the employer-employee relationship.
25 The governing body of such an intergovernmental
26 cooperative entity established prior to July 1, 1988 may
27 make participation retroactive to the effective date of
28 the agreement and, if so, the effective date of
29 participation shall be the date the required application
30 is filed with the fund. If any such entity is unable to
31 pay the required employer contributions to the fund, then
32 the participating municipalities shall make payment of
33 the required contributions and the payments shall be
34 allocated as provided in the agreement or, if not so
-36- LRB9207762EGfg
1 provided, equally among them.
2 xxi. The Illinois Municipal Electric Agency.
3 xxii. The Waukegan Port District.
4 xxiii. The Fox Waterway Agency created under the
5 Fox Waterway Agency Act.
6 xxiv. The Kaskaskia Regional Port District.
7 xxv. The Illinois Municipal Gas Agency.
8 (c) The governing boards of special education joint
9 agreements created under Section 10-22.31 of the School Code
10 without designation of an administrative district shall be
11 included within and be subject to this Article as
12 participating instrumentalities when the joint agreement
13 becomes effective. However, the governing board of any such
14 special education joint agreement in effect before September
15 5, 1975 shall not be subject to this Article unless the joint
16 agreement is modified by the school districts to provide that
17 the governing board is subject to this Article, except as
18 otherwise provided by this Section.
19 The governing board of the Special Education District of
20 Lake County shall become subject to this Article as a
21 participating instrumentality on July 1, 1997.
22 Notwithstanding subdivision (a)1 of Section 7-139, on the
23 effective date of participation, employees of the governing
24 board of the Special Education District of Lake County shall
25 receive creditable service for their prior service with that
26 employer, up to a maximum of 5 years, without any employee
27 contribution. Employees may establish creditable service for
28 the remainder of their prior service with that employer, if
29 any, by applying in writing and paying an employee
30 contribution in an amount determined by the Fund, based on
31 the employee contribution rates in effect at the time of
32 application for the creditable service and the employee's
33 salary rate on the effective date of participation for that
34 employer, plus interest at the effective rate from the date
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1 of the prior service to the date of payment. Application for
2 this creditable service must be made before July 1, 1998; the
3 payment may be made at any time while the employee is still
4 in service. The employer may elect to make the required
5 contribution on behalf of the employee.
6 The governing board of a special education joint
7 agreement created under Section 10-22.31 of the School Code
8 for which an administrative district has been designated, if
9 there are employees of the cooperative educational entity who
10 are not employees of the administrative district, may elect
11 to participate in the Fund and be included within this
12 Article as a participating instrumentality, subject to such
13 application procedures and rules as the Board may prescribe.
14 The Boards of Control of cooperative or joint educational
15 programs or projects created and administered under Section
16 3-15.14 of the School Code, whether or not the Boards act as
17 their own administrative district, shall be included within
18 and be subject to this Article as participating
19 instrumentalities when the agreement establishing the
20 cooperative or joint educational program or project becomes
21 effective.
22 The governing board of a special education joint
23 agreement entered into after June 30, 1984 and prior to
24 September 17, 1985 which provides for representation on the
25 governing board by less than all the participating districts
26 shall be included within and subject to this Article as a
27 participating instrumentality. Such participation shall be
28 effective as of the date the joint agreement becomes
29 effective.
30 The governing boards of educational service centers
31 established under Section 2-3.62 of the School Code shall be
32 included within and subject to this Article as participating
33 instrumentalities. The governing boards of vocational
34 education cooperative agreements created under the
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1 Intergovernmental Cooperation Act and approved by the State
2 Board of Education shall be included within and be subject to
3 this Article as participating instrumentalities. If any such
4 governing boards or boards of control are unable to pay the
5 required employer contributions to the fund, then the school
6 districts served by such boards shall make payment of
7 required contributions as provided in Section 7-172. The
8 payments shall be allocated among the several school
9 districts in proportion to the number of students in average
10 daily attendance for the last full school year for each
11 district in relation to the total number of students in
12 average attendance for such period for all districts served.
13 If such educational service centers, vocational education
14 cooperatives or cooperative or joint educational programs or
15 projects created and administered under Section 3-15.14 of
16 the School Code are dissolved, the assets and obligations
17 shall be distributed among the districts in the same
18 proportions unless otherwise provided.
19 (d) The governing boards of special recreation joint
20 agreements created under Section 8-10b of the Park District
21 Code, operating without designation of an administrative
22 district or an administrative municipality appointed to
23 administer the program operating under the authority of such
24 joint agreement shall be included within and be subject to
25 this Article as participating instrumentalities when the
26 joint agreement becomes effective. However, the governing
27 board of any such special recreation joint agreement in
28 effect before January 1, 1980 shall not be subject to this
29 Article unless the joint agreement is modified, by the
30 districts and municipalities which are parties to the
31 agreement, to provide that the governing board is subject to
32 this Article.
33 If the Board returns any employer and employee
34 contributions to any employer which erroneously submitted
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1 such contributions on behalf of a special recreation joint
2 agreement, the Board shall include interest computed from the
3 end of each year to the date of payment, not compounded, at
4 the rate of 7% per annum.
5 (e) Each multi-township assessment district, the board
6 of trustees of which has adopted this Article by ordinance
7 prior to April 1, 1982, shall be a participating
8 instrumentality included within and subject to this Article
9 effective December 1, 1981. The contributions required under
10 Section 7-172 shall be included in the budget prepared under
11 and allocated in accordance with Section 2-30 of the Property
12 Tax Code.
13 (f) Beginning January 1, 1992, each prospective
14 participating municipality or participating instrumentality
15 shall pay to the Fund the cost, as determined by the Board,
16 of a study prepared by the Fund or its actuary, detailing the
17 prospective costs of participation in the Fund to be expected
18 by the municipality or instrumentality.
19 (Source: P.A. 89-162, eff. 7-19-95; 90-511, eff. 8-22-97.)
20 (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
21 Sec. 7-139. Credits and creditable service to employees.
22 (a) Each participating employee shall be granted credits
23 and creditable service, for purposes of determining the
24 amount of any annuity or benefit to which he or a beneficiary
25 is entitled, as follows:
26 1. For prior service: Each participating employee
27 who is an employee of a participating municipality or
28 participating instrumentality on the effective date shall
29 be granted creditable service, but no credits under
30 paragraph 2 of this subsection (a), for periods of prior
31 service for which credit has not been received under any
32 other pension fund or retirement system established under
33 this Code, as follows:
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1 If the effective date of participation for the
2 participating municipality or participating
3 instrumentality is on or before January 1, 1998,
4 creditable service shall be granted for the entire period
5 of prior service with that employer without any employee
6 contribution.
7 If the effective date of participation for the
8 participating municipality or participating
9 instrumentality is after January 1, 1998, creditable
10 service shall be granted for the last 20% of the period
11 of prior service with that employer, but no more than 5
12 years, without any employee contribution. A
13 participating employee may establish creditable service
14 for the remainder of the period of prior service with
15 that employer by making an application in writing,
16 accompanied by payment of an employee contribution in an
17 amount determined by the Fund, based on the employee
18 contribution rates in effect at the time of application
19 for the creditable service and the employee's salary rate
20 on the effective date of participation for that employer,
21 plus interest at the effective rate from the date of the
22 prior service to the date of payment. Application for
23 this creditable service may be made at any time while the
24 employee is still in service.
25 Any person who has withdrawn from the service of a
26 participating municipality or participating
27 instrumentality prior to the effective date, who reenters
28 the service of the same municipality or participating
29 instrumentality after the effective date and becomes a
30 participating employee is entitled to creditable service
31 for prior service as otherwise provided in this
32 subdivision (a)(1) only if he or she renders 2 years of
33 service as a participating employee after the effective
34 date. Application for such service must be made while in
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1 a participating status. The salary rate to be used in
2 the calculation of the required employee contribution, if
3 any, shall be the employee's salary rate at the time of
4 first reentering service with the employer after the
5 employer's effective date of participation.
6 2. For current service, each participating employee
7 shall be credited with:
8 a. Additional credits of amounts equal to each
9 payment of additional contributions received from
10 him under Section 7-173, as of the date the
11 corresponding payment of earnings is payable to him.
12 b. Normal credits of amounts equal to each
13 payment of normal contributions received from him,
14 as of the date the corresponding payment of earnings
15 is payable to him, and normal contributions made for
16 the purpose of establishing out-of-state service
17 credits as permitted under the conditions set forth
18 in paragraph 6 of this subsection (a).
19 c. Municipality credits in an amount equal to
20 1.4 times the normal credits, except those
21 established by out-of-state service credits, as of
22 the date of computation of any benefit if these
23 credits would increase the benefit.
24 d. Survivor credits equal to each payment of
25 survivor contributions received from the
26 participating employee as of the date the
27 corresponding payment of earnings is payable, and
28 survivor contributions made for the purpose of
29 establishing out-of-state service credits.
30 3. For periods of temporary and total and permanent
31 disability benefits, each employee receiving disability
32 benefits shall be granted creditable service for the
33 period during which disability benefits are payable.
34 Normal and survivor credits, based upon the rate of
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1 earnings applied for disability benefits, shall also be
2 granted if such credits would result in a higher benefit
3 to any such employee or his beneficiary.
4 4. For authorized leave of absence without pay: A
5 participating employee shall be granted credits and
6 creditable service for periods of authorized leave of
7 absence without pay under the following conditions:
8 a. An application for credits and creditable
9 service is submitted to the board while the employee
10 is in a status of active employment, and within 2
11 years after termination of the leave of absence
12 period for which credits and creditable service are
13 sought.
14 b. Not more than 12 complete months of
15 creditable service for authorized leave of absence
16 without pay shall be counted for purposes of
17 determining any benefits payable under this Article.
18 c. Credits and creditable service shall be
19 granted for leave of absence only if such leave is
20 approved by the governing body of the municipality,
21 including approval of the estimated cost thereof to
22 the municipality as determined by the fund, and
23 employee contributions, plus interest at the
24 effective rate applicable for each year from the end
25 of the period of leave to date of payment, have been
26 paid to the fund in accordance with Section 7-173.
27 The contributions shall be computed upon the
28 assumption earnings continued during the period of
29 leave at the rate in effect when the leave began.
30 d. Benefits under the provisions of Sections
31 7-141, 7-146, 7-150 and 7-163 shall become payable
32 to employees on authorized leave of absence, or
33 their designated beneficiary, only if such leave of
34 absence is creditable hereunder, and if the employee
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1 has at least one year of creditable service other
2 than the service granted for leave of absence. Any
3 employee contributions due may be deducted from any
4 benefits payable.
5 e. No credits or creditable service shall be
6 allowed for leave of absence without pay during any
7 period of prior service.
8 5. For military service: The governing body of a
9 municipality or participating instrumentality may elect
10 to allow creditable service to participating employees
11 who leave their employment to serve in the armed forces
12 of the United States for all periods of such service,
13 provided that the person returns to active employment
14 within 90 days after completion of full time active duty,
15 but no creditable service shall be allowed such person
16 for any period that can be used in the computation of a
17 pension or any other pay or benefit, other than pay for
18 active duty, for service in any branch of the armed
19 forces of the United States. If necessary to the
20 computation of any benefit, the board shall establish
21 municipality credits for participating employees under
22 this paragraph on the assumption that the employee
23 received earnings at the rate received at the time he
24 left the employment to enter the armed forces. A
25 participating employee in the armed forces shall not be
26 considered an employee during such period of service and
27 no additional death and no disability benefits are
28 payable for death or disability during such period.
29 Any participating employee who left his employment
30 with a municipality or participating instrumentality to
31 serve in the armed forces of the United States and who
32 again became a participating employee within 90 days
33 after completion of full time active duty by entering the
34 service of a different municipality or participating
-44- LRB9207762EGfg
1 instrumentality, which has elected to allow creditable
2 service for periods of military service under the
3 preceding paragraph, shall also be allowed creditable
4 service for his period of military service on the same
5 terms that would apply if he had been employed, before
6 entering military service, by the municipality or
7 instrumentality which employed him after he left the
8 military service and the employer costs arising in
9 relation to such grant of creditable service shall be
10 charged to and paid by that municipality or
11 instrumentality.
12 Notwithstanding the foregoing, any participating
13 employee shall be entitled to creditable service as
14 required by any federal law relating to re-employment
15 rights of persons who served in the United States Armed
16 Services. Such creditable service shall be granted upon
17 payment by the member of an amount equal to the employee
18 contributions which would have been required had the
19 employee continued in service at the same rate of
20 earnings during the military leave period, plus interest
21 at the effective rate.
22 5.1. In addition to any creditable service
23 established under paragraph 5 of this subsection (a),
24 creditable service may be granted for up to 24 months of
25 service in the armed forces of the United States.
26 In order to receive creditable service for military
27 service under this paragraph 5.1, a participating
28 employee must (1) apply to the Fund in writing and
29 provide evidence of the military service that is
30 satisfactory to the Board; (2) obtain the written
31 approval of the current employer; and (3) make
32 contributions to the Fund equal to (i) the employee
33 contributions that would have been required had the
34 service been rendered as a member, plus (ii) an amount
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1 determined by the board to be equal to the employer's
2 normal cost of the benefits accrued for that military
3 service, plus (iii) interest on items (i) and (ii) from
4 the date of first membership in the Fund to the date of
5 payment. If payment is made during the 6-month period
6 that begins 3 months after the effective date of this
7 amendatory Act of 1997, the required interest shall be at
8 the rate of 2.5% per year, compounded annually;
9 otherwise, the required interest shall be calculated at
10 the regular interest rate.
11 6. For out-of-state service: Creditable service
12 shall be granted for service rendered to an out-of-state
13 local governmental body under the following conditions:
14 The employee had participated and has irrevocably
15 forfeited all rights to benefits in the out-of-state
16 public employees pension system; the governing body of
17 his participating municipality or instrumentality
18 authorizes the employee to establish such service; the
19 employee has 2 years current service with this
20 municipality or participating instrumentality; the
21 employee makes a payment of contributions, which shall be
22 computed at 8% (normal) plus 2% (survivor) times length
23 of service purchased times the average rate of earnings
24 for the first 2 years of service with the municipality or
25 participating instrumentality whose governing body
26 authorizes the service established plus interest at the
27 effective rate on the date such credits are established,
28 payable from the date the employee completes the required
29 2 years of current service to date of payment. In no
30 case shall more than 120 months of creditable service be
31 granted under this provision.
32 7. For retroactive service: Any employee who could
33 have but did not elect to become a participating
34 employee, or who should have been a participant in the
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1 Municipal Public Utilities Annuity and Benefit Fund
2 before that fund was superseded, may receive creditable
3 service for the period of service not to exceed 50
4 months; however, a current or former elected or appointed
5 official of a participating municipality county board
6 member may establish credit under this paragraph 7 for
7 more than 50 months of service as an official of that
8 municipality, a member of the county board if the excess
9 over 50 months is approved by resolution of the governing
10 body of the affected municipality county board filed with
11 the Fund before January 1, 2002 1999.
12 Any employee who is a participating employee on or
13 after September 24, 1981 and who was excluded from
14 participation by the age restrictions removed by Public
15 Act 82-596 may receive creditable service for the period,
16 on or after January 1, 1979, excluded by the age
17 restriction and, in addition, if the governing body of
18 the participating municipality or participating
19 instrumentality elects to allow creditable service for
20 all employees excluded by the age restriction prior to
21 January 1, 1979, for service during the period prior to
22 that date excluded by the age restriction. Any employee
23 who was excluded from participation by the age
24 restriction removed by Public Act 82-596 and who is not a
25 participating employee on or after September 24, 1981 may
26 receive creditable service for service after January 1,
27 1979. Creditable service under this paragraph shall be
28 granted upon payment of the employee contributions which
29 would have been required had he participated, with
30 interest at the effective rate for each year from the end
31 of the period of service established to date of payment.
32 8. For accumulated unused sick leave: A
33 participating employee who is applying for a retirement
34 annuity shall be entitled to creditable service for that
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1 portion of the employee's accumulated unused sick leave
2 for which payment is not received, as follows:
3 a. Sick leave days shall be limited to those
4 accumulated under a sick leave plan established by a
5 participating municipality or participating
6 instrumentality which is available to all employees
7 or a class of employees.
8 b. Only sick leave days accumulated with a
9 participating municipality or participating
10 instrumentality with which the employee was in
11 service within 60 days of the effective date of his
12 retirement annuity shall be credited; If the
13 employee was in service with more than one employer
14 during this period only the sick leave days with the
15 employer with which the employee has the greatest
16 number of unpaid sick leave days shall be
17 considered.
18 c. The creditable service granted shall be
19 considered solely for the purpose of computing the
20 amount of the retirement annuity and shall not be
21 used to establish any minimum service period
22 required by any provision of the Illinois Pension
23 Code, the effective date of the retirement annuity,
24 or the final rate of earnings.
25 d. The creditable service shall be at the rate
26 of 1/20 of a month for each full sick day, provided
27 that no more than 12 months may be credited under
28 this subdivision 8.
29 e. Employee contributions shall not be
30 required for creditable service under this
31 subdivision 8.
32 f. Each participating municipality and
33 participating instrumentality with which an employee
34 has service within 60 days of the effective date of
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1 his retirement annuity shall certify to the board
2 the number of accumulated unpaid sick leave days
3 credited to the employee at the time of termination
4 of service.
5 9. For service transferred from another system:
6 Credits and creditable service shall be granted for
7 service under Article 3, 4, 5, 14 or 16 of this Act, to
8 any active member of this Fund, and to any inactive
9 member who has been a county sheriff, upon transfer of
10 such credits pursuant to Section 3-110.3, 4-108.3, 5-235,
11 14-105.6 or 16-131.4, and payment by the member of the
12 amount by which (1) the employer and employee
13 contributions that would have been required if he had
14 participated in this Fund as a sheriff's law enforcement
15 employee during the period for which credit is being
16 transferred, plus interest thereon at the effective rate
17 for each year, compounded annually, from the date of
18 termination of the service for which credit is being
19 transferred to the date of payment, exceeds (2) the
20 amount actually transferred to the Fund. Such transferred
21 service shall be deemed to be service as a sheriff's law
22 enforcement employee for the purposes of Section 7-142.1.
23 (b) Creditable service - amount:
24 1. One month of creditable service shall be allowed
25 for each month for which a participating employee made
26 contributions as required under Section 7-173, or for
27 which creditable service is otherwise granted hereunder.
28 Not more than 1 month of service shall be credited and
29 counted for 1 calendar month, and not more than 1 year of
30 service shall be credited and counted for any calendar
31 year. A calendar month means a nominal month beginning
32 on the first day thereof, and a calendar year means a
33 year beginning January 1 and ending December 31.
34 2. A seasonal employee shall be given 12 months of
-49- LRB9207762EGfg
1 creditable service if he renders the number of months of
2 service normally required by the position in a 12-month
3 period and he remains in service for the entire 12-month
4 period. Otherwise a fractional year of service in the
5 number of months of service rendered shall be credited.
6 3. An intermittent employee shall be given
7 creditable service for only those months in which a
8 contribution is made under Section 7-173.
9 (c) No application for correction of credits or
10 creditable service shall be considered unless the board
11 receives an application for correction while (1) the
12 applicant is a participating employee and in active
13 employment with a participating municipality or
14 instrumentality, or (2) while the applicant is actively
15 participating in a pension fund or retirement system which is
16 a participating system under the Retirement Systems
17 Reciprocal Act. A participating employee or other applicant
18 shall not be entitled to credits or creditable service unless
19 the required employee contributions are made in a lump sum or
20 in installments made in accordance with board rule.
21 (d) Upon the granting of a retirement, surviving spouse
22 or child annuity, a death benefit or a separation benefit, on
23 account of any employee, all individual accumulated credits
24 shall thereupon terminate. Upon the withdrawal of additional
25 contributions, the credits applicable thereto shall thereupon
26 terminate. Terminated credits shall not be applied to
27 increase the benefits any remaining employee would otherwise
28 receive under this Article.
29 (Source: P.A. 90-448, eff. 8-16-97; 91-887, eff. 7-6-00.)
30 (40 ILCS 5/7-139.7) (from Ch. 108 1/2, par. 7-139.7)
31 Sec. 7-139.7. Transfer to Article 14.
32 (a) Until January 31, 1994, any active member of the
33 State Employees' Retirement System who is a State policeman,
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1 a conservation police officer, or an investigator for the
2 Secretary of State may apply for transfer of his creditable
3 service accumulated under this Article for service as a
4 sheriff's law enforcement employee, or service as a municipal
5 conservator of the peace, certified under the Police Training
6 Act, to the State Employees' Retirement System. At the time
7 of the transfer the Fund shall pay to the State Employees'
8 Retirement System an amount equal to:
9 (1) the amounts accumulated to the credit of the
10 applicant for such service on the books of the Fund on
11 the date of transfer; and
12 (2) the corresponding municipality credits,
13 including interest, on the books of the Fund on the date
14 of transfer; and
15 (3) any interest paid by the applicant in order to
16 reinstate such service.
17 Participation in this Fund with respect to the transferred
18 credits shall terminate on the date of transfer.
19 (b) Until January 31, 1993, any such State policeman,
20 conservation police officer or investigator for the Secretary
21 of State may reinstate service that was terminated by receipt
22 of a refund, by paying to the Fund the amount of the refund
23 with interest thereon at the effective rate from the date of
24 refund to the date of payment.
25 (c) Until July 1, 2002, any active member of the State
26 Employees' Retirement System who is a State policeman may
27 apply for transfer of all or a portion of his or her
28 creditable service accumulated under this Article for service
29 as a Metropolitan Enforcement Group agent employed by a
30 police department to the State Employees' Retirement System
31 in accordance with Section 14-110. At the time of the
32 transfer the Fund shall pay to the State Employees'
33 Retirement System an amount equal to:
34 (1) the amounts accumulated to the credit of the
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1 applicant for the service to be transferred on the books
2 of the Fund on the date of transfer; and
3 (2) the corresponding municipality credits,
4 including interest, on the books of the Fund on the date
5 of transfer.
6 Participation in this Fund with respect to the transferred
7 credits shall terminate on the date of transfer.
8 (Source: P.A. 87-794; 87-850; 87-1265.)
9 (40 ILCS 5/7-139.8) (from Ch. 108 1/2, par. 7-139.8)
10 Sec. 7-139.8. Transfer to Article 14 System.
11 (a) Any active member of the State Employees' Retirement
12 System who is an investigator for the Office of the State's
13 Attorneys Appellate Prosecutor, an investigator for the
14 Office of the Attorney General, or a controlled substance
15 inspector may apply for transfer of some or all of his or her
16 credits and creditable service accumulated in this Fund for
17 service as a sheriff's law enforcement employee or service as
18 a municipal conservator of the peace certified under the
19 Police Training Act, to the State Employees' Retirement
20 System in accordance with Section 14-110. The creditable
21 service shall be transferred only upon payment by this Fund
22 to the State Employees' Retirement System of an amount equal
23 to:
24 (1) the amounts accumulated to the credit of the
25 applicant for the service to be transferred as a
26 sheriff's law enforcement employee, including interest;
27 and
28 (2) municipality credits based on such service,
29 including interest; and
30 (3) any interest paid by the applicant to reinstate
31 such service.
32 Participation in this Fund as to any credits transferred
33 under this Section shall terminate on the date of transfer.
-52- LRB9207762EGfg
1 (b) Any such investigator or inspector may reinstate
2 credits and creditable service terminated upon receipt of a
3 separation benefit, by paying to the Fund the amount of the
4 separation benefit plus interest thereon at the rate of 6%
5 per year to the date of payment.
6 (Source: P.A. 90-32, eff. 6-27-97.)
7 (40 ILCS 5/8-110) (from Ch. 108 1/2, par. 8-110)
8 Sec. 8-110. Employer. "Employer":
9 (1) a city of more than 500,000 inhabitants;
10 (2) or the Board of Education of the such city, with
11 respect to any of its employees who participate in this Fund;
12 (3) the Chicago Housing Authority, with respect to any
13 of its employees who participate in this Fund subject to the
14 provisions of Section 8-230.9;
15 (4) the Public Building Commission of the city, with
16 respect to any of its employees who participate in this Fund;
17 and
18 (5) to which this Article applies, or the Retirement
19 Board.
20 (Source: Laws 1968, p. 181.)
21 (40 ILCS 5/8-113) (from Ch. 108 1/2, par. 8-113)
22 Sec. 8-113. Municipal employee, employee, contributor,
23 or participant. "Municipal employee", "employee",
24 "contributor", or "participant":
25 (a) Any employee of an employer employed in the
26 classified civil service thereof other than by temporary
27 appointment or in a position excluded or exempt from the
28 classified service by the Civil Service Act, or in the case
29 of a city operating under a personnel ordinance, any employee
30 of an employer employed in the classified or career service
31 under the provisions of a personnel ordinance, other than in
32 a provisional or exempt position as specified in such
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1 ordinance or in rules and regulations formulated thereunder.
2 (b) Any employee in the service of an employer before
3 the Civil Service Act came in effect for the employer.
4 (c) Any person employed by the board.
5 (d) Any person employed after December 31, 1949, but
6 prior to January 1, 1984, in the service of the employer by
7 temporary appointment or in a position exempt from the
8 classified service as set forth in the Civil Service Act, or
9 in a provisional or exempt position as specified in the
10 personnel ordinance, who meets the following qualifications:
11 (1) has rendered service during not less than 12
12 calendar months to an employer as an employee, officer, or
13 official, 4 months of which must have been consecutive full
14 normal working months of service rendered immediately prior
15 to filing application to be included; and
16 (2) files written application with the board, while in
17 the service, to be included hereunder.
18 (e) After December 31, 1949, any alderman or other
19 officer or official of the employer, who files, while in
20 office, written application with the board to be included
21 hereunder.
22 (f) Beginning January 1, 1984, any person employed by an
23 employer other than the Chicago Housing Authority or the
24 Public Building Commission of the city, whether or not such
25 person is serving by temporary appointment or in a position
26 exempt from the classified service as set forth in the Civil
27 Service Act, or in a provisional or exempt position as
28 specified in the personnel ordinance, provided that such
29 person is neither (1) an alderman or other officer or
30 official of the employer, nor (2) participating, on the basis
31 of such employment, in any other pension fund or retirement
32 system established under this Act.
33 (g) After December 31, 1959, any person employed in the
34 law department of the city, or municipal court or Board of
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1 Election Commissioners of the city, who was a contributor and
2 participant, on December 31, 1959, in the annuity and benefit
3 fund in operation in the city on said date, by virtue of the
4 Court and Law Department Employees' Annuity Act or the Board
5 of Election Commissioners Employees' Annuity Act.
6 After December 31, 1959, the foregoing definition
7 includes any other person employed or to be employed in the
8 law department, or municipal court (other than as a judge),
9 or Board of Election Commissioners (if his salary is provided
10 by appropriation of the city council of the city and his
11 salary paid by the city) -- subject, however, in the case of
12 such persons not participants on December 31, 1959, to
13 compliance with the same qualifications and restrictions
14 otherwise set forth in this Section and made generally
15 applicable to employees or officers of the city concerning
16 eligibility for participation or membership.
17 (h) After December 31, 1965, any person employed in the
18 public library of the city -- and any other person -- who was
19 a contributor and participant, on December 31, 1965, in the
20 pension fund in operation in the city on said date, by virtue
21 of the Public Library Employees' Pension Act.
22 (i) After December 31, 1968, any person employed in the
23 house of correction of the city, who was a contributor and
24 participant, on December 31, 1968, in the pension fund in
25 operation in the city on said date, by virtue of the House of
26 Correction Employees' Pension Act.
27 (j) Any person employed full-time on or after the
28 effective date of this amendatory Act of the 92nd General
29 Assembly by the Chicago Housing Authority who has elected to
30 participate in this Fund as provided in subsection (a) of
31 Section 8-230.9.
32 (k) Any person employed full-time by the Public Building
33 Commission of the city who has elected to participate in this
34 Fund as provided in subsection (d) of Section 8-230.7.
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1 (Source: P.A. 83-802.)
2 (40 ILCS 5/8-120) (from Ch. 108 1/2, par. 8-120)
3 Sec. 8-120. Child or children. "Child" or "children":
4 The natural child or children, or any child or children
5 legally adopted by an employee at least one year prior to the
6 date any benefit for the child or children accrues, and so
7 adopted prior to the date the employee attained age 55.
8 (Source: P.A. 84-1028.)
9 (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
10 Sec. 8-150.1. Minimum annuities for widows. The widow
11 (otherwise eligible for widow's annuity under other Sections
12 of this Article 8) of an employee hereinafter described, who
13 retires from service or dies while in the service subsequent
14 to the effective date of this amendatory provision, and for
15 which widow the amount of widow's annuity and widow's prior
16 service annuity combined, fixed or provided for such widow
17 under other provisions of this Article is less than the
18 amount provided in this Section, shall, from and after the
19 date her otherwise provided annuity would begin, in lieu of
20 such otherwise provided widow's and widow's prior service
21 annuity, be entitled to the following indicated amount of
22 annuity:
23 (a) The widow of any employee who dies while in service
24 on or after the date on which he attains age 60 if the death
25 occurs before July 1, 1990, or on or after the date on which
26 he attains age 55 if the death occurs on or after July 1,
27 1990, with at least 20 years of service, or on or after the
28 date on which he attains age 50 if the death occurs on or
29 after the effective date of this amendatory Act of 1997 with
30 at least 30 years of service, shall be entitled to an annuity
31 equal to one-half of the amount of annuity which her deceased
32 husband would have been entitled to receive had he withdrawn
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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
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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.
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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,
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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
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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
-61- LRB9207762EGfg
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
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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
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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
-64- LRB9207762EGfg
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
-65- LRB9207762EGfg
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 shall be
6 reduced, but not to less than $10 per month, by the amount
7 that the employee would be eligible to receive as a
8 disability benefit under the federal Social Security Act,
9 whether or not that federal benefit is based on service as a
10 covered employee under this Article. The reduction shall be
11 effective as of the month the employee is eligible for the
12 social security disability benefit. The Board may make this
13 reduction pending determination of eligibility for the social
14 security disability benefit, if it appears to the Board that
15 the employee may be eligible, and make an appropriate
16 adjustment if necessary after eligibility for the social
17 security disability benefit is determined. If the employee's
18 social security disability benefit is reduced or terminated
19 because of a refusal to accept rehabilitation services under
20 the federal Rehabilitation Act of 1973 or the federal Social
21 Security Act or because the employee is receiving a workers'
22 compensation benefit, the ordinary disability benefit under
23 this Section shall be reduced as if the employee were
24 receiving the full social security disability benefit.
25 The amount of ordinary disability benefit shall not be
26 reduced by reason of any increase in the amount of social
27 security disability benefit that takes effect after the month
28 of the initial reduction under this Section, other than an
29 increase resulting from a correction in the employee's wage
30 records.
31 (Source: P.A. 84-23.)
32 (40 ILCS 5/8-167) (from Ch. 108 1/2, par. 8-167)
33 Sec. 8-167. Restoration of rights.
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1 (1) An employee who has withdrawn as a refund the
2 amounts credited for annuity purposes, and who (i) re-enters
3 service of the employer and serves for periods comprising at
4 least 90 days 2 years after the date of the last refund paid
5 to him or (ii) has completed at least 2 years of service
6 under a participating system (as defined in the Retirement
7 Systems Reciprocal Act) other than this Fund after the date
8 of the last refund, shall have his annuity rights restored by
9 compliance with the following provisions:
10 (a) After such 90 day or 2 year period, whichever
11 applies, he shall repay in full to the Fund, while in
12 service, in full all refunds received, together with
13 interest at the effective rate from the dates of refund
14 to the date of repayment.; or
15 (b) If payment is not made in a single sum, the
16 repayment may be made in installments by deductions from
17 salary or otherwise in such amounts and manner as the
18 board, by rule, may prescribe, with interest at the
19 effective rate accruing on unpaid balances.; or
20 (c) If the employee withdraws from service or dies
21 in service before full repayment is made, service credit
22 shall be restored in accordance with Section 8-230.3(b).
23 such rights shall not be restored, but the amount,
24 including interest, repaid by him, but without any
25 further interest otherwise normally credited, shall be
26 refunded to him or to his widow, or in the manner
27 provided by the refund provisions of this Article if no
28 widow survives.
29 (d) If the employee repays the refund while
30 participating in a participating system (as defined in
31 the Retirement Systems Reciprocal Act) other than this
32 Fund, the service credit restored must be used for a
33 proportional annuity calculated in accordance with the
34 Retirement Systems Reciprocal Act. If not so used, the
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1 restored service credit shall be forfeited and the amount
2 of the repayment shall be refunded, without interest.
3 (2) A person who is employed full-time by a local
4 labor organization that represents municipal employees
5 and has withdrawn as a refund the amounts credited for
6 annuity purposes may elect to have his or her annuity
7 rights restored by repaying to the Fund in full all
8 refunds received, together with interest at the effective
9 rate from the date of the refund to the date of
10 repayment. Repayment of a refund under this subsection
11 (2) does not require a return to service, and this
12 subsection applies without regard to whether the person
13 is in service on or after the effective date of this
14 amendatory Act of the 92nd General Assembly.
15 (3) This Section applies also to any person who received
16 a refund from any annuity and benefit fund or pension fund
17 which was merged into and superseded by the annuity and
18 benefit fund provided for in this Article on or after
19 December 31, 1959. Upon repayment such person shall receive
20 credit for all annuity purposes in the annuity and benefit
21 fund provided for in this Article for the period of service
22 covered by the repayment. such refund.
23 (4) The amount of refund repayment is considered as
24 salary deductions for age and service annuity and widow's
25 annuity purposes in the case of a male person. In the latter
26 case the amount of refund repayment is allocated in the
27 applicable proportion for age and service and widow's annuity
28 purposes. Such person shall also be credited with city
29 contributions for age and service annuity, and widow's
30 annuity if a male employee, in the amount which would have
31 been credited and accrued if such person had been a
32 participant in and contributor to the annuity and benefit
33 fund provided for in this Article during the period of such
34 service on the basis of his salary during such period.
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1 (Source: P.A. 81-1536.)
2 (40 ILCS 5/8-168) (from Ch. 108 1/2, par. 8-168)
3 Sec. 8-168. Refunds - Withdrawal before age 55 or with
4 less than 10 years of service.
5 1. An employee, without regard to length of service, who
6 withdraws before age 55, and any employee with less than 10
7 years of service who withdraws before age 60, shall be
8 entitled to a refund of the accumulated sums to his credit,
9 as of the date of withdrawal, for age and service annuity and
10 widow's annuity from amounts contributed by him, including
11 interest credited and including amounts contributed for him
12 for age and service and widow's annuity purposes by the city
13 while receiving duty disability benefits; provided that such
14 amounts contributed by the city after December 31, 1981,
15 while the employee is receiving duty disability benefits, and
16 amounts credited to the employee for annuity purposes by the
17 fund after December 31, 2000, while the employee is receiving
18 ordinary disability benefits, shall not be credited for
19 refund purposes. If he is a present employee he shall also be
20 entitled to a refund of the accumulations from any sums
21 contributed by him, and applied to any municipal pension fund
22 superseded by this fund.
23 2. Upon receipt of the refund, the employee surrenders
24 and forfeits all rights to any annuity or other benefits, for
25 himself and for any other persons who might have benefited
26 through him; provided that he may have such period of service
27 counted in computing the term of his service if he becomes an
28 employee before age 65, excepting as limited by the
29 provisions of paragraph (a) (3) of Section 8-232 of this
30 Article relating to the basis of computing the term of
31 service.
32 3. Any such employee shall retain such right to a refund
33 of such amounts when he shall apply for same until he
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1 re-enters the service or until the amount of annuity shall
2 have been fixed as provided in this Article. Thereafter, no
3 such right shall exist in the case of any such employee.
4 4. Any such municipal employee who shall have served 10
5 or more years and who shall not withdraw the amounts
6 aforesaid to which he shall have a right of refund shall have
7 a right to annuity as stated in this Article.
8 5. Any such municipal employee who shall have served
9 less than 10 years and who shall not withdraw the amounts to
10 which he shall have a right to refund shall have a right to
11 have all such amounts and all other amounts to his credit for
12 annuity purposes on date of his withdrawal from service
13 retained to his credit and improved by interest while he
14 shall be out of the service at the rate of 3 1/2% or 3% per
15 annum (whichever rate shall apply under the provisions of
16 Section 8-155 of this Article) and used for annuity purposes
17 for his benefit and the benefit of any person who may have
18 any right to annuity through him because of his service,
19 according to the provisions of this Article in the event that
20 he shall subsequently re-enter the service and complete the
21 number of years of service necessary to attain a right to
22 annuity; but such sum shall be improved by interest to his
23 credit while he shall be out of the service only until he
24 shall have become 65 years of age.
25 (Source: P.A. 82-283.)
26 (40 ILCS 5/8-171) (from Ch. 108 1/2, par. 8-171)
27 Sec. 8-171. Refund in lieu of annuity. In lieu of an
28 annuity, an employee who withdraws and whose annuity would
29 amount to less than $800 a month for life, may elect to
30 receive a refund of his accumulated contributions for annuity
31 purposes, based on the amounts contributed by him.
32 The widow of any employee, eligible for annuity upon the
33 death of her husband, whose widow's annuity would amount to
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1 less than $800 a month for life, may, in lieu of widow's
2 annuity, elect to receive a refund of the accumulated
3 contributions for annuity purposes, based on the amounts
4 contributed by her deceased employee husband, but reduced by
5 any amounts theretofore paid to him in the form of an annuity
6 or refund out of such accumulated contributions.
7 Accumulated contributions shall mean the amounts -
8 including the interest credited thereon - contributed by the
9 employee for age and service and widow's annuity to the date
10 of his withdrawal or death, whichever first occurs, including
11 any amounts contributed for him as salary deductions while
12 receiving duty disability benefits, and, if not otherwise
13 included, any accumulations from sums contributed by him and
14 applied to any pension fund superseded by this fund; provided
15 that such amounts contributed by the city after December 31,
16 1981 while the employee is receiving duty disability benefits
17 and amounts credited to the employee for annuity purposes by
18 the fund after December 31, 2000 while the employee is
19 receiving ordinary disability shall not be included.
20 The acceptance of such refund in lieu of widow's annuity,
21 on the part of a widow, shall not deprive a child or children
22 of the right to receive a child's annuity as provided for in
23 Sections 8-158 and 8-159 of this Article, and neither shall
24 the payment of a child's annuity in the case of such refund
25 to a widow reduce the amount herein set forth as refundable
26 to such widow electing a refund in lieu of widow's annuity.
27 (Source: P.A. 91-887, eff. 7-6-00.)
28 (40 ILCS 5/8-174.1) (from Ch. 108 1/2, par. 8-174.1)
29 Sec. 8-174.1. Employer contributions on behalf of
30 employees.
31 (a) The employer may make and may incur an obligation to
32 make contributions on behalf of its employees in an amount
33 not to exceed the employee contributions required by Sections
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1 8-137, 8-161, 8-174, 8-182 and 8-182.1 for all salary earned
2 after December 31, 1981. If such employee contributions are
3 not made or an obligation to make such contributions is not
4 incurred by the employer on behalf of its employees, the
5 amount that could have been contributed shall continue to be
6 deducted from salary. If employee contributions are made by
7 the employer on behalf of its employees, they shall be
8 treated as employer contributions in determining tax
9 treatment under the United States Internal Revenue Code;
10 however, each city shall continue to withhold federal and
11 State income taxes based upon these contributions until the
12 Internal Revenue Service or the Federal courts rule that
13 pursuant to Section 414(h) of the United States Internal
14 Revenue Code, these contributions shall not be included as
15 gross income of the employee until such time as they are
16 distributed or made available. The employer may make these
17 contributions on behalf of its employees by a reduction in
18 the cash salary of the employee or by an offset against a
19 future salary increase or by a combination of a reduction in
20 salary and offset against a future salary increase. The
21 employer shall pay these employee contributions from the same
22 source of funds used in paying salary to the employee or, if
23 the employer is a Board of Education, it may also or
24 alternatively pay such contributions in whole or in part from
25 the proceeds of the pension contribution liability tax
26 authorized by Section 34-60.1 of the School Code, as amended.
27 If such a tax is levied with respect to any fiscal year of a
28 Board of Education, that portion of the contributions to be
29 paid by the Board of Education on behalf of its employees for
30 that fiscal year from the proceeds of such a tax shall not be
31 due and payable into the Fund until the collection, in the
32 calendar year following the calendar year in which such levy
33 was made, of the actual tax bills extending the second
34 installment of real estate taxes for the Board of Education
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1 for that calendar year, pursuant to Section 21-30 of the
2 Property Tax Code, and such Board of Education shall not be
3 required to pay those contributions to be paid from the
4 proceeds of such a tax into the Fund except as collected from
5 the extension of the actual tax bills. If employee
6 contributions are made by the employer on behalf of its
7 employees, they shall be treated for all purposes of this
8 Article 8, including Section 8-173, in the same manner and to
9 the same extent as employee contributions made by employees
10 and deducted from salary; provided, however, that
11 contributions which are made by a Board of Education on
12 behalf of its employees shall not be treated as a pension or
13 retirement obligation of the Board of Education for purposes
14 of Section 12 of "An Act in relation to State revenue sharing
15 with local governmental entities", approved July 31, 1969, as
16 amended. For purposes of Section 8-173, contributions made
17 by a Board of Education on behalf of its employees shall be
18 treated as contributions made by or on behalf of employees to
19 the Fund for the fiscal year for which the Board of Education
20 incurred the obligation to make such contributions.
21 (b) Subject to the requirements of federal law and the
22 rules of the Board, the Fund may allow the employee to elect
23 to have the employer pick up the optional contributions that
24 the employee has elected to pay to the Fund, and the
25 contributions so picked up shall be treated as employer
26 contributions for the purpose of determining federal tax
27 treatment. The employer shall pick up the contributions by a
28 reduction in the cash salary of the employee and shall pay
29 contributions from the same source of funds that is used to
30 pay earnings of the employee. The election to have the
31 contributions picked up is irrevocable and the optional
32 contributions may not thereafter be prepaid, by direct
33 payment or otherwise.
34 If the provision authorizing the optional contribution
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1 requires payment by a stated date (rather than the date of
2 withdrawal or retirement), the requirement will be deemed to
3 have been satisfied if (i) on or before the stated date the
4 employee executes a valid irrevocable election to have the
5 contributions picked up under this subsection, and (ii) the
6 picked-up contributions are in fact paid to the Fund as
7 provided in the election.
8 If employee contributions are picked up under this
9 subsection, they shall be treated for all purposes of this
10 Article 8, including Section 8-173, in the same manner and to
11 the same extent as optional employee contributions made prior
12 to the date picked up.
13 (Source: P.A. 88-670, eff. 12-2-94.)
14 (40 ILCS 5/8-226.7 new)
15 Sec. 8-226.7. Transfer to Metropolitan Pier and
16 Exposition Authority pension plan.
17 (a) Until January 1, 2002, any member of the management
18 committee of the Metropolitan Pier and Exposition Authority,
19 as designated by the chief executive officer of the
20 Authority, regardless of whether the member is in service
21 under this Article on or after the effective date of this
22 Section, may apply to the Board for transfer of all of his or
23 her creditable service accumulated under this Fund to the
24 pension plan established for employees and officers of the
25 Metropolitan Pier and Exposition Authority. The creditable
26 service shall be transferred in accordance with the terms of
27 that plan and shall be accompanied by a payment from this
28 Fund to that pension plan, consisting of:
29 (1) the amounts accumulated to the credit of the
30 applicant for the service to be transferred, including
31 interest, on the books of the Fund on the date of
32 transfer, but excluding any additional or optional
33 credits, which shall be refunded to the applicant; plus
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1 (2) municipality credits computed and credited
2 under this Article, including interest, on the books of
3 the Fund on the date the applicant terminated service
4 under the Fund.
5 Participation in this Fund as to the credits transferred
6 under this Section terminates on the date of transfer.
7 (b) For the purpose of transferring credit under this
8 Section, a person may reinstate credits and creditable
9 service terminated upon receipt of a refund, by paying to the
10 Fund, before January 1, 2002, the amount of the refund plus
11 regular interest from the date of the refund to the date of
12 repayment.
13 (40 ILCS 5/8-227) (from Ch. 108 1/2, par. 8-227)
14 Sec. 8-227. Service as police officer, firefighter or
15 teacher.
16 (a) Service rendered by an employee as a police officer
17 and member of the regularly constituted police department of
18 the city, or as a firefighter and regular member of the paid
19 fire department of the city, or as a teacher in the public
20 school system in the city shall be counted, for the purposes
21 of this Article, as service rendered as an employee of the
22 city. Salary received for any such service shall be treated,
23 for the purposes of this Article, as salary received for the
24 performance of duty as an employee.
25 (b) Subsection (a) applies The foregoing provisions
26 shall apply to service rendered after the effective date only
27 if the employee pays to the Fund, prior to his separation
28 from service, an amount equal to what would have accumulated
29 in his or her account from salary deductions as employee
30 contributions, including interest at the effective rate, if
31 such contributions had been made for age and service and
32 spouse's annuity during all of such service; provided, that
33 no service shall be counted or payments received for any
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1 period of service for which the employee retains or has not
2 forfeited his or her rights to credit for the same period of
3 service in another annuity and benefit fund, or pension fund,
4 in operation in the city for the benefit of such police
5 officers, firefighters, or teachers. The amount transferred
6 to the Fund under item (1) of Section 5-233.1, if any, shall
7 be credited against the contributions required under this
8 subsection.
9 (Source: P.A. 81-1536.)
10 (40 ILCS 5/8-230.7)
11 Sec. 8-230.7. Service rendered to Public Building
12 Commission.
13 (a) An employee or former employee may contribute to the
14 Fund and receive credit for all periods of past full-time
15 employment with by the Public Building Commission created by
16 the employing city, except for those periods for which the
17 employee retains a right to credit in another public pension
18 fund or retirement system. Such service credit shall be paid
19 for and granted on the same basis and under the same
20 conditions as are applicable in the case of employees who
21 make payment for past service under Section 8-230, provided
22 that the person must also pay the corresponding employer
23 contributions. The contributions shall be based on the
24 salary actually received by the person from the Commission
25 for that employment.
26 (b) A person establishing service credit under
27 subsection (a) or electing to participate in the Fund under
28 subsection (d) may, at the same time, reinstate service
29 credit that was terminated through receipt of a refund by
30 repaying to the Fund the amount of the refund plus interest
31 at the effective rate from the date of the refund to the date
32 of repayment.
33 (c) An eligible person may establish service credit
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1 under subsection (a) and reinstate service credit under
2 subsection (b) without returning to active service as an
3 employee under this Article, but the required contributions
4 and repayment must be received by the Fund before the person
5 begins to receive a retirement annuity under this Article.
6 (d) Within 60 days after beginning full-time employment
7 with the Public Building Commission of the city (or within 60
8 days after the effective date of this amendatory Act of the
9 92nd General Assembly, whichever is later), a person having
10 service credits in this Fund or reinstating service credits
11 under subsection (b) may elect to participate in this Fund
12 with respect to that Public Building Commission employment.
13 An employee who participates in this Fund with respect to
14 Public Building Commission employment shall not participate
15 in any other pension plan for employees of the Commission
16 with respect to the same period of employment. An election
17 under this subsection (d), once made, is irrevocable.
18 Participation under this subsection shall be on the same
19 basis and under the same conditions as are applicable in the
20 case of participating employees of the city. Employee
21 contributions shall be based on the salary actually received
22 by the employee for that employment. Employer contributions
23 shall be paid by the Public Building Commission rather than
24 the city, at a rate to be determined by the Retirement Board.
25 (Source: P.A. 90-766, eff. 8-14-98.)
26 (40 ILCS 5/8-230.8 new)
27 Sec. 8-230.8. Credit for employment with the Metropolitan
28 Pier and Exposition Authority.
29 (a) A person who has service credit in the Fund and has
30 not yet begun to receive a retirement annuity may establish
31 service credit in this Fund for periods before the effective
32 date of this Section during which he or she was employed by
33 the Metropolitan Pier and Exposition Authority or its
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1 predecessor entities, provided that the person does not have
2 credit for those periods in any other public employee pension
3 fund or retirement system and has terminated participation
4 with respect to those periods of employment in any pension or
5 retirement program established by the Authority or its
6 predecessor entities. A person need not establish credit for
7 all such periods and may not establish more than 10 years of
8 service credit under this subsection. The credit established
9 shall be deemed to relate to the earliest period for which
10 the credit may be established.
11 In order to establish this credit, the person must apply
12 in writing to the Board and pay to the Fund an amount equal
13 to the sum of: (i) employee contributions based upon the
14 period of credit to be established, the employee contribution
15 rate in effect at the time of application, and the
16 applicant's salary rate on the last day of service in the
17 Fund before his or her employment with the Authority, or the
18 first day of service in the Fund after that employment,
19 whichever is higher; (ii) an employer contribution equal to
20 the amount determined under item (i) multiplied by the
21 employer multiple under Section 8-173(a); and (iii) interest
22 on items (i) and (ii) at the rate of 6% per year, compounded
23 annually, from the date of the service to the date of
24 payment. The applicant may pay the required contribution in
25 a lump sum at any time before the retirement annuity begins
26 or, subject to subsection (c), within 90 days after
27 withdrawal from city service.
28 (b) A person wishing to establish service credit under
29 subsection (a) may reinstate creditable service terminated
30 upon receipt of a refund in accordance with the provisions of
31 Section 8-167.
32 (c) An eligible person may establish service credit
33 under subsection (a) without returning to active service as
34 an employee under this Article, but the required
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1 contributions must be received by the Fund before the person
2 begins to receive a retirement annuity under this Article.
3 (40 ILCS 5/8-230.9 new)
4 Sec. 8-230.9. Service rendered to Chicago Housing
5 Authority.
6 (a) Within 60 days after beginning full-time employment
7 with the Chicago Housing Authority (or within 60 days after
8 the effective date of this amendatory Act of the 92nd General
9 Assembly, whichever is later), a person having service
10 credits in this Fund or reinstating service credits under
11 subsection (c) may elect to participate in this Fund with
12 respect to that Chicago Housing Authority employment. An
13 employee who participates in this Fund with respect to
14 Chicago Housing Authority employment shall not, with respect
15 to the same period of employment, participate in any other
16 pension plan for employees of the Authority for which
17 contributions are made by the Authority, except that this
18 provision shall not prevent an employee from making elective
19 contributions to a plan of deferred compensation during that
20 period. An election under this subsection (a), once made, is
21 irrevocable.
22 Participation under this subsection shall be on the same
23 basis and under the same conditions as are applicable in the
24 case of participating employees of the city. Employee
25 contributions shall be based on the salary actually received
26 by the employee for that employment. Employer contributions
27 shall be paid by the Chicago Housing Authority rather than
28 the city, at a rate to be determined by the Retirement Board.
29 (b) An employee or former employee of the Chicago
30 Housing Authority who has established credit under the Fund
31 with regard to service to an employer other than the Chicago
32 Housing Authority may contribute to the Fund and receive
33 credit for all periods of full-time employment with the
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1 Chicago Housing Authority occurring prior to 60 days after
2 the effective date of this amendatory Act, except for those
3 periods for which the employee retains a right to credit in
4 another public pension fund or retirement system established
5 under this Code. Such service credit shall be paid for and
6 granted on the same basis and under the same conditions as
7 are applicable in the case of employees who make payment for
8 past service under Section 8-230, provided that the person
9 must also pay the corresponding employer contributions, and
10 further provided that the contributions and service credit
11 are permitted under Section 415 of the Internal Revenue Code
12 of 1986. The contributions shall be based on the salary
13 actually received by the person from the Authority for that
14 employment.
15 (c) A person establishing service credit under
16 subsection (b) or electing to participate in the Fund under
17 subsection (a) may, at the same time, reinstate service
18 credit that was terminated through receipt of a refund by
19 repaying to the Fund the amount of the refund plus interest
20 at the effective rate from the date of the refund to the date
21 of repayment.
22 (d) An eligible person may establish service credit
23 under subsection (b) and reinstate service credit under
24 subsection (c) without returning to active service as an
25 employee under this Article, but the required contributions
26 and repayment must be received by the Fund before the person
27 begins to receive a retirement annuity under this Article.
28 (40 ILCS 5/8-230.10 new)
29 Sec. 8-230.10. Service rendered to IHDA. An employee
30 with at least 10 years of creditable service in the Fund may
31 establish service credit for up to 7 years of full-time
32 employment by the Illinois Housing Development Authority for
33 which the employee does not have credit in another public
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1 pension fund or retirement system.
2 To establish service credit under this Section, the
3 employee must apply to the Fund in writing by July 1, 2002
4 and pay to the Fund, at any time before beginning to receive
5 a retirement annuity under this Article, an amount to be
6 determined by the Fund, consisting of (i) employee
7 contributions based on the salary actually received by the
8 person from the Illinois Housing Development Authority for
9 that employment and the contribution rates then in effect for
10 employees of the Fund, (ii) the corresponding employer
11 contributions, and (iii) regular interest on the amounts in
12 items (i) and (ii) from the date of the service to the date
13 of payment.
14 (40 ILCS 5/8-243.2) (from Ch. 108 1/2, par. 8-243.2)
15 Sec. 8-243.2. Alternative annuity for city officers.
16 (a) For the purposes of this Section and Sections
17 8-243.1 and 8-243.3, "city officer" means the city clerk, the
18 city treasurer, or an alderman of the city elected by vote of
19 the people, while serving in that capacity or as provided in
20 subsection (f), who has elected to participate in the Fund.
21 (b) Any elected city officer, while serving in that
22 capacity or as provided in subsection (f), may elect to
23 establish alternative credits for an alternative annuity by
24 electing in writing to make additional optional
25 contributions in accordance with this Section and the
26 procedures established by the board. Such elected city
27 officer may discontinue making the additional optional
28 contributions by notifying the Fund in writing in accordance
29 with this Section and procedures established by the board.
30 Additional optional contributions for the alternative
31 annuity shall be as follows:
32 (1) For service after the option is elected, an
33 additional contribution of 3% of salary shall be
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1 contributed to the Fund on the same basis and under the
2 same conditions as contributions required under Sections
3 8-174 and 8-182.
4 (2) For service before the option is elected, an
5 additional contribution of 3% of the salary for the
6 applicable period of service, plus interest at the
7 effective rate from the date of service to the date of
8 payment. All payments for past service must be paid in
9 full before credit is given. No additional optional
10 contributions may be made for any period of service for
11 which credit has been previously forfeited by acceptance
12 of a refund, unless the refund is repaid in full with
13 interest at the effective rate from the date of refund to
14 the date of repayment.
15 (c) In lieu of the retirement annuity otherwise payable
16 under this Article, any city officer elected by vote of the
17 people who (1) has elected to participate in the Fund and
18 make additional optional contributions in accordance with
19 this Section, and (2) has attained age 55 60 with at least 10
20 years of service credit, or has attained age 60 65 with at
21 least 8 years of service credit, may elect to have his
22 retirement annuity computed as follows: 3% of the
23 participant's salary at the time of termination of service
24 for each of the first 8 years of service credit, plus 4% of
25 such salary for each of the next 4 years of service credit,
26 plus 5% of such salary for each year of service credit in
27 excess of 12 years, subject to a maximum of 80% of such
28 salary. To the extent such elected city officer has made
29 additional optional contributions with respect to only a
30 portion of his years of service credit, his retirement
31 annuity will first be determined in accordance with this
32 Section to the extent such additional optional contributions
33 were made, and then in accordance with the remaining Sections
34 of this Article to the extent of years of service credit with
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1 respect to which additional optional contributions were not
2 made.
3 (d) In lieu of the disability benefits otherwise payable
4 under this Article, any city officer elected by vote of the
5 people who (1) has elected to participate in the Fund, and
6 (2) has become permanently disabled and as a consequence is
7 unable to perform the duties of his office, and (3) was
8 making optional contributions in accordance with this Section
9 at the time the disability was incurred, may elect to receive
10 a disability annuity calculated in accordance with the
11 formula in subsection (c). For the purposes of this
12 subsection, such elected city officer shall be considered
13 permanently disabled only if: (i) disability occurs while in
14 service as an elected city officer and is of such a nature as
15 to prevent him from reasonably performing the duties of his
16 office at the time; and (ii) the board has received a written
17 certification by at least 2 licensed physicians appointed by
18 it stating that such officer is disabled and that the
19 disability is likely to be permanent.
20 (e) Refunds of additional optional contributions shall
21 be made on the same basis and under the same conditions as
22 provided under Sections 8-168, 8-170 and 8-171. Interest
23 shall be credited at the effective rate on the same basis and
24 under the same conditions as for other contributions.
25 Optional contributions shall be accounted for in a separate
26 Elected City Officer Optional Contribution Reserve. Optional
27 contributions under this Section shall be included in the
28 amount of employee contributions used to compute the tax levy
29 under Section 8-173.
30 (f) The effective date of this plan of optional
31 alternative benefits and contributions shall be July 1, 1990,
32 or the date upon which approval is received from the U.S.
33 Internal Revenue Service, whichever is later.
34 The plan of optional alternative benefits and
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1 contributions shall not be available to any former city
2 officer or employee receiving an annuity from the Fund on the
3 effective date of the plan, unless he re-enters service as an
4 elected city officer and renders at least 3 years of
5 additional service after the date of re-entry. However, a
6 person who holds office as a city officer on June 1, 1995
7 April 30, 1991 may elect to participate in the plan, to
8 transfer credits into the Fund from other Articles of this
9 Code, and to make the contributions required for prior
10 service, until 30 days after the effective date of this
11 amendatory Act of the 92nd General Assembly the plan takes
12 effect, notwithstanding the ending of his term of office
13 prior to that effective date; in the event that the person is
14 already receiving an annuity from this Fund or any other
15 Article of this Code at the time of making this election, the
16 annuity shall be recalculated to include any increase
17 resulting from participation in the plan, with such increase
18 taking effect on the effective date of the election plan.
19 (Source: P.A. 86-1488; 87-794.)
20 (40 ILCS 5/9-121.6) (from Ch. 108 1/2, par. 9-121.6)
21 Sec. 9-121.6. Alternative annuity for county officers.
22 (a) Any county officer elected by vote of the people may
23 elect to establish alternative credits for an alternative
24 annuity by electing in writing to make additional optional
25 contributions in accordance with this Section and procedures
26 established by the board. Such elected county officer may
27 discontinue making the additional optional contributions by
28 notifying the Fund in writing in accordance with this Section
29 and procedures established by the board.
30 Additional optional contributions for the alternative
31 annuity shall be as follows:
32 (1) For service after the option is elected, an
33 additional contribution of 3% of salary shall be contributed
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1 to the Fund on the same basis and under the same conditions
2 as contributions required under Sections 9-170 and 9-176.
3 (2) For service before the option is elected, an
4 additional contribution of 3% of the salary for the
5 applicable period of service, plus interest at the effective
6 rate from the date of service to the date of payment. All
7 payments for past service must be paid in full before credit
8 is given. No additional optional contributions may be made
9 for any period of service for which credit has been
10 previously forfeited by acceptance of a refund, unless the
11 refund is repaid in full with interest at the effective rate
12 from the date of refund to the date of repayment.
13 (b) In lieu of the retirement annuity otherwise payable
14 under this Article, any county officer elected by vote of the
15 people who (1) has elected to participate in the Fund and
16 make additional optional contributions in accordance with
17 this Section, and (2) has attained age 55 60 with at least 10
18 years of service credit, or has attained age 60 65 with at
19 least 8 years of service credit, may elect to have his
20 retirement annuity computed as follows: 3% of the
21 participant's salary at the time of termination of service
22 for each of the first 8 years of service credit, plus 4% of
23 such salary for each of the next 4 years of service credit,
24 plus 5% of such salary for each year of service credit in
25 excess of 12 years, subject to a maximum of 80% of such
26 salary. To the extent such elected county officer has made
27 additional optional contributions with respect to only a
28 portion of his years of service credit, his retirement
29 annuity will first be determined in accordance with this
30 Section to the extent such additional optional contributions
31 were made, and then in accordance with the remaining Sections
32 of this Article to the extent of years of service credit with
33 respect to which additional optional contributions were not
34 made.
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1 (c) In lieu of the disability benefits otherwise payable
2 under this Article, any county officer elected by vote of the
3 people who (1) has elected to participate in the Fund, and
4 (2) has become permanently disabled and as a consequence is
5 unable to perform the duties of his office, and (3) was
6 making optional contributions in accordance with this Section
7 at the time the disability was incurred, may elect to receive
8 a disability annuity calculated in accordance with the
9 formula in subsection (b). For the purposes of this
10 subsection, such elected county officer shall be considered
11 permanently disabled only if: (i) disability occurs while in
12 service as an elected county officer and is of such a nature
13 as to prevent him from reasonably performing the duties of
14 his office at the time; and (ii) the board has received a
15 written certification by at least 2 licensed physicians
16 appointed by it stating that such officer is disabled and
17 that the disability is likely to be permanent.
18 (d) Refunds of additional optional contributions shall
19 be made on the same basis and under the same conditions as
20 provided under Section 9-164, 9-166 and 9-167. Interest shall
21 be credited at the effective rate on the same basis and under
22 the same conditions as for other contributions. Optional
23 contributions shall be accounted for in a separate Elected
24 County Officer Optional Contribution Reserve. Optional
25 contributions under this Section shall be included in the
26 amount of employee contributions used to compute the tax levy
27 under Section 9-169.
28 (e) The effective date of this plan of optional
29 alternative benefits and contributions shall be January 1,
30 1988, or the date upon which approval is received from the
31 U.S. Internal Revenue Service, whichever is later. The plan
32 of optional alternative benefits and contributions shall not
33 be available to any former county officer or employee
34 receiving an annuity from the Fund on the effective date of
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1 the plan, unless he re-enters service as an elected county
2 officer and renders at least 3 years of additional service
3 after the date of re-entry.
4 (Source: P.A. 85-964.)
5 (40 ILCS 5/9-121.10) (from Ch. 108 1/2, par. 9-121.10)
6 Sec. 9-121.10. Transfer to Article 14.
7 (a) Until July 1, 1993, any active member of the State
8 Employees' Retirement System who is a State policeman may
9 apply for transfer of some or all of his creditable service
10 as a member of the County Police Department accumulated under
11 this Article to the State Employees' Retirement System. At
12 the time of the transfer the Fund shall pay to the State
13 Employees' Retirement System an amount equal to:
14 (1) the amounts accumulated to the credit of the
15 applicant on the books of the Fund on the date of
16 transfer for the service to be transferred; and
17 (2) the corresponding municipality credits,
18 including interest, on the books of the Fund on the date
19 of transfer; and
20 (3) any interest paid by the applicant in order to
21 reinstate such service.
22 Participation in this Fund with respect to the credits
23 transferred shall terminate on the date of transfer.
24 (b) Until July 1, 1993, any such State policeman may
25 reinstate credit for service as a member of the County Police
26 Department that was terminated by receipt of a refund, by
27 paying to the Fund the amount of the refund with interest
28 thereon at the rate of 6% per year, compounded annually, from
29 the date of refund to the date of payment.
30 (c) Any active member of the State Employees' Retirement
31 System who is an investigator for the Office of the Attorney
32 General may apply for transfer of some or all of his or her
33 creditable service as a member of the County Police
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1 Department accumulated under this Article to the State
2 Employees' Retirement System in accordance with Section
3 14-110. At the time of the transfer the Fund shall pay to
4 the State Employees' Retirement System an amount equal to:
5 (1) the amounts accumulated to the credit of the
6 applicant for the service to be transferred on the books
7 of the Fund on the date of transfer; and
8 (2) the corresponding municipality credits,
9 including interest, on the books of the Fund on the date
10 of transfer; and
11 (3) any interest paid by the applicant in order to
12 reinstate such service.
13 Participation in this Fund with respect to the credits
14 transferred shall terminate on the date of transfer.
15 (d) Any such investigator for the Office of the Attorney
16 General may may reinstate credit for service as a member of
17 the County Police Department that was terminated by receipt
18 of a refund, by paying to the Fund the amount of the refund
19 plus interest at the rate of 6% per year, compounded
20 annually, from the date of the refund to the date of payment.
21 (Source: P.A. 87-1265.)
22 (40 ILCS 5/9-121.14 new)
23 Sec. 9-121.14. Benefit processors. An employee with at
24 least 5 years of creditable service under this Article may
25 purchase service credit for annuity purposes for up to 5
26 years of time spent working as a benefits processor for a
27 firm under contract with the Fund, by paying to the Fund
28 before July 1, 2002 an amount equal to 8.5% of the salary
29 received for that work or, if that salary is not
30 determinable, 8.5% of the employee's annual salary rate on
31 the first day of service in the Fund for each year of service
32 credit established under this Section. The employee may not
33 make optional contributions under Section 9-121.6 or 9-179.3
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1 for periods of credit established under this Section.
2 (40 ILCS 5/9-121.15)
3 Sec. 9-121.15. Transfer of credit from Article 14 system.
4 A current or former An employee shall be entitled to service
5 credit in the Fund for any creditable service transferred to
6 this Fund from the State Employees' Retirement System under
7 Section 14-105.7 of this Code. Credit under this Fund shall
8 be granted upon receipt by the Fund of the amounts required
9 to be transferred under Section 14-105.7; no additional
10 contribution is necessary.
11 (Source: P.A. 90-511, eff. 8-22-97.)
12 (40 ILCS 5/9-121.16 new)
13 Sec. 9-121.16. Contractual service to the Retirement
14 Board. A person who has rendered continuous contractual
15 services (other than legal services) to the Retirement Board
16 for a period of at least 5 years may establish creditable
17 service in the Fund for up to 10 years of those services by
18 making written application to the Board before July 1, 2002
19 and paying to the Fund an amount to be determined by the
20 Board, equal to the employee contributions that would have
21 been required if those services had been performed as an
22 employee.
23 For the purposes of calculating the required payment, the
24 Board may determine the applicable salary equivalent based on
25 the compensation received by the person for performing those
26 contractual services. The salary equivalent calculated under
27 this Section shall not be used for determining final average
28 salary under Section 9-134 or any other provisions of this
29 Code.
30 A person may not make optional contributions under
31 Section 9-121.6 or 9-179.3 for periods of credit established
32 under this Section.
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1 (40 ILCS 5/9-134) (from Ch. 108 1/2, par. 9-134)
2 Sec. 9-134. Minimum annuity - Additional provisions.
3 (a) An employee who withdraws after July 1, 1957 at age
4 60 or more with 20 or more years of service, for whom the
5 amount of age and service and prior service annuity combined
6 is less than the amount stated in this Section from the date
7 of withdrawal, instead of all annuities otherwise provided in
8 this Article, is entitled to receive an annuity for life of
9 an amount equal to 1 2/3% for each year of service, of his
10 highest average annual salary for any 5 consecutive years
11 within the last 10 years of service immediately preceding the
12 date of withdrawal; provided that in the case of any employee
13 who withdraws on or after July 1, 1971, such employee age 60
14 or over with 20 or more years of service, or who withdraws on
15 or after January 1, 1982 and on or after attainment of age 65
16 with 10 or more years of service, shall instead receive an
17 annuity for life equal to 1.67% for each of the first 10
18 years of service; 1.90% for each of the next 10 years of
19 service; 2.10% for each year of service in excess of 20 but
20 not exceeding 30; and 2.30% for each year of service in
21 excess of 30, based on the highest average annual salary for
22 any 4 consecutive years within the last 10 years of service
23 immediately preceding the date of withdrawal.
24 An employee who withdraws after July 1, 1957, but prior
25 to January 1, 1988, with 20 or more years of service, before
26 age 60 is entitled to annuity, to begin not earlier than age
27 55, if under such age at withdrawal, as computed in the last
28 preceding paragraph, reduced 1/2 of 1% for each full month or
29 fractional part thereof that his attained age when annuity is
30 to begin is less than 60 to the end that the total reduction
31 at age 55 shall be 30%, except that an employee retiring at
32 age 55 or over but less than age 60, having at least 35 years
33 of service, shall not be subject to the reduction in his
34 retirement annuity because of retirement below age 60.
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1 An employee who withdraws on or after January 1, 1988,
2 with 20 or more years of service and before age 60, is
3 entitled to annuity as computed above, to begin not earlier
4 than age 50 if under such age at withdrawal, reduced 1/2 of
5 1% for each full month or fractional part thereof that his
6 attained age when annuity is to begin is less than 60, to the
7 end that the total reduction at age 50 shall be 60%, except
8 that an employee retiring at age 50 or over but less than age
9 60, having at least 30 years of service, shall not be subject
10 to the reduction in retirement annuity because of retirement
11 below age 60.
12 An employee who withdraws on or after January 1, 1992 but
13 before January 1, 1993, at age 60 or over with 5 or more
14 years of service, may elect, in lieu of any other employee
15 annuity provided in this Section, to receive an annuity for
16 life equal to 2.20% for each of the first 20 years of
17 service, and 2.40% for each year of service in excess of 20,
18 based on the highest average annual salary for any 4
19 consecutive years within the last 10 years of service
20 immediately preceding the date of withdrawal. An employee
21 who withdraws on or after January 1, 1992, but before January
22 1, 1993, on or after attainment of age 55 but before
23 attainment of age 60 with 5 or more years of service, is
24 entitled to elect such annuity, but the annuity shall be
25 reduced 0.25% for each full month or fractional part thereof
26 that his attained age when the annuity is to begin is less
27 than age 60, to the end that the total reduction at age 55
28 shall be 15%, except that an employee retiring at age 55 or
29 over but less than age 60, having at least 30 years of
30 service, shall not be subject to the reduction in retirement
31 annuity because of retirement below age 60. This annuity
32 benefit formula shall only apply to those employees who are
33 age 55 or over prior to January 1, 1993, and who elect to
34 withdraw at age 55 or over on or after January 1, 1992 but
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1 before January 1, 1993.
2 An employee who withdraws on or after July 1, 1996 but
3 before August 1, 1996, at age 55 or over with 8 or more years
4 of service, may elect, in lieu of any other employee annuity
5 provided in this Section, to receive an annuity for life
6 equal to 2.20% for each of the first 20 years of service, and
7 2.40% for each year of service in excess of 20, based on the
8 highest average annual salary for any 4 consecutive years
9 within the last 10 years of service immediately preceding the
10 date of withdrawal, but the annuity shall be reduced by 0.25%
11 for each full month or fractional part thereof that the
12 annuitant's attained age when the annuity is to begin is less
13 than age 60, unless the annuitant has at least 30 years of
14 service.
15 The maximum annuity under this paragraph (a) shall not
16 exceed 70% of highest average annual salary for any 5
17 consecutive years within the last 10 years of service in the
18 case of an employee who withdraws prior to July 1, 1971, and
19 75% of the highest average annual salary for any 4
20 consecutive years within the last 10 years of service
21 immediately preceding the date of withdrawal if withdrawal
22 takes place on or after July 1, 1971 and prior to January 1,
23 1988, and 80% of the highest average annual salary for any 4
24 consecutive years within the last 10 years of service
25 immediately preceding the date of withdrawal if withdrawal
26 takes place on or after January 1, 1988. Fifteen hundred
27 dollars shall be considered the minimum amount of annual
28 salary for any year, and the maximum shall be his salary as
29 defined in this Article, except that for the years before
30 1957 and subsequent to 1952 the maximum annual salary to be
31 considered shall be $6,000, and for any year before the year
32 1953, $4,800.
33 (b) Any employee who withdraws on or after July 1, 1985
34 but prior to January 1, 1988, at age 60 or over with 10 or
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1 more years of service, may elect in lieu of the benefit in
2 paragraph (a) to receive an annuity for life equal to 2.00%
3 for each year of service, based on the highest average annual
4 salary for any 4 consecutive years within the last 10 years
5 of service immediately preceding the date of withdrawal. An
6 employee who withdraws on or after July 1, 1985, but prior to
7 January 1, 1988, with 10 or more years of service, but before
8 age 60, is entitled to elect such annuity, to begin not
9 earlier than age 55, but the annuity shall be reduced 0.5%
10 for each full month or fractional part thereof that his
11 attained age when the annuity is to begin is less than 60, to
12 the end that the total reduction at age 55 shall be 30%;
13 except that an employee retiring at age 55 or over but less
14 than age 60, having at least 30 years of service, shall not
15 be subject to the reduction in retirement annuity because of
16 retirement below age 60.
17 An employee who withdraws on or after January 1, 1988, at
18 age 60 or over with 10 or more years of service, may elect,
19 in lieu of the benefit in paragraph (a), to receive an
20 annuity for life equal to 2.20% for each of the first 20
21 years of service, and 2.4% for each year of service in excess
22 of 20, based on the highest average annual salary for any 4
23 consecutive years within the last 10 years of service
24 immediately preceding the date of withdrawal. An employee who
25 withdraws on or after January 1, 1988, with 10 or more years
26 of service, but before age 60, is entitled to elect such
27 annuity, to begin not earlier than age 50, but the annuity
28 shall be reduced 0.5% for each full month or fractional part
29 thereof that his attained age when the annuity is to begin is
30 less than 60, to the end that the total reduction at age 50
31 shall be 60%, except that an employee retiring at age 50 or
32 over but less than age 60, having at least 30 years of
33 service, shall not be subject to the reduction in retirement
34 annuity because of retirement below age 60.
-93- LRB9207762EGfg
1 An employee who withdraws on or after December 31, 2000
2 with 10 or more years of service may elect, in lieu of any
3 other retirement annuity provided under this Article, to
4 receive an annuity for life, beginning no earlier than upon
5 attainment of age 50, equal to 2.40% of his or her highest
6 average annual salary for any 4 consecutive years within the
7 last 10 years of service immediately preceding withdrawal,
8 for each year of service. If the employee has less than 30
9 years of service, the annuity shall be reduced by 0.5% for
10 each full month or remaining fraction thereof that the
11 employee's attained age when the annuity is to begin is less
12 than 60.
13 The maximum annuity under this paragraph (b) shall not
14 exceed 75% of the highest average annual salary for any 4
15 consecutive years within the last 10 years of service
16 immediately preceding the date of withdrawal if withdrawal
17 occurs prior to January 1, 1988, or 80% of the highest
18 average annual salary for any 4 consecutive years within the
19 last 10 years of service immediately preceding the date of
20 withdrawal if withdrawal takes place on or after January 1,
21 1988.
22 The provisions of this paragraph (b) do not apply to any
23 former County employee receiving an annuity from the fund,
24 who re-enters service as a County employee, unless he renders
25 at least 3 years of additional service after the date of
26 re-entry.
27 (c) For an employee receiving disability benefit, the
28 salary for annuity purposes under paragraph (a) or (b) of
29 this Section shall, for all periods of disability benefit
30 subsequent to the year 1956, be the amount on which his
31 disability benefit was based.
32 (d) A county employee with 20 or more years of service,
33 whose entire disability benefit credit period expires before
34 attainment of age 50 (age 55 if expiration occurs before
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1 January 1, 1988), while still disabled for service is
2 entitled upon withdrawal to the larger of:
3 (1) The minimum annuity provided above, assuming
4 that he is then age 50 (age 55 if expiration occurs
5 before January 1, 1988), and reducing such annuity to its
6 actuarial equivalent at his attained age on such date, or
7 (2) the annuity provided from his age and service
8 and prior service annuity credits.
9 (e) The minimum annuity provisions above do not apply to
10 any former county employee receiving an annuity from the
11 fund, who re-enters service as a county employee, unless he
12 renders at least 3 years of additional service after the date
13 of re-entry.
14 (f) Any employee in service on July 1, 1947, or who
15 enters service thereafter before attaining age 65 and
16 withdraws after age 65 with less than 10 years of service for
17 whom the annuity has been fixed under the foregoing Sections
18 of this Article, shall, instead of the annuity so fixed,
19 receive an annuity as follows:
20 Such amount as he could have received had the accumulated
21 amounts for annuity been improved with interest at the
22 effective rate to the date of withdrawal, or to attainment of
23 age 70, whichever is earlier, and had the county contributed
24 to such earlier date for age and service annuity the amount
25 that it would have contributed had he been under age 65,
26 after the date his annuity was fixed in accordance with this
27 Article, and assuming his annuity were computed from such
28 accumulations as of his age on such earlier date. However
29 those employees who before July 1, 1953, made additional
30 contributions in accordance with this Article, the annuity so
31 computed under this paragraph shall not exceed the annuity
32 which would be payable under the other provisions of this
33 Section if the employee concerned was credited with 20 years
34 of service and would qualify for annuity thereunder.
-95- LRB9207762EGfg
1 (g) Instead of the annuity provided in this or any other
2 Section of this Article, an employee having attained age 65
3 with at least 15 years of service may elect to receive a
4 minimum annual annuity for life equal to 1% of the highest
5 average annual salary for any 4 consecutive years within the
6 last 10 years of service immediately preceding retirement for
7 each year of service, plus the sum of $25 for each year of
8 service provided that no such minimum annual annuity may be
9 greater than 60% of such highest average annual salary.
10 (h) The annuity is payable in equal monthly
11 installments.
12 (i) If, by operation of law, a function of a
13 governmental unit, as defined by Section 20-107 of this Code,
14 is transferred in whole or in part to the county in which
15 this Article 9 is created as set forth in Section 9-101, and
16 employees of the governmental unit are transferred as a class
17 to such county, the earnings credits in the retirement system
18 covering the governmental unit which have been validated
19 under Section 20-109 of this Code shall be considered in
20 determining the highest average annual salary for purposes of
21 this Section 9-134.
22 (j) The annuity being paid to an employee annuitant on
23 July 1, 1988, shall be increased on that date by 1% for each
24 full year that has elapsed from the date the annuity began.
25 (k) Notwithstanding anything to the contrary in this
26 Article 9, Section 20-131 shall not apply to an employee who
27 withdraws on or after January 1, 1988, but prior to attaining
28 age 55. Therefore, no employee shall be entitled to elect to
29 have the alternative formula previously set forth in Section
30 20-122 prior to the amendatory Act of 1975 apply to any
31 annuity, the payment of which commenced after January 1,
32 1988, but prior to such employee's attainment of age 55.
33 (Source: P.A. 86-272; 87-794.)
-96- LRB9207762EGfg
1 (40 ILCS 5/9-146.1) (from Ch. 108 1/2, par. 9-146.1)
2 Sec. 9-146.1. Minimum annuities for widows. The widow of
3 an employee who retires from service or dies while in the
4 service subsequent to June 11, 1965, who is otherwise
5 eligible for widow's annuity under this Article and for whom
6 the amount of widow's annuity and widow's prior service
7 annuity combined, fixed or provided for such widow under
8 other provisions of this Article 9 is less than the amount
9 hereinafter provided in this Section, shall, from and after
10 the date her otherwise provided annuity would begin, in lieu
11 of such otherwise provided widow's and widow's prior service
12 annuity, be entitled to the following indicated amount of
13 annuity:
14 (a) The widow, of any employee who dies while in the
15 service on or after the date on which he attains the age of
16 60 or more years with at least 20 years of service, or 10 or
17 more years of service if death occurs on or after attainment
18 of age 65 and on or after January 1, 1982, shall be entitled
19 to an annuity equal to one-half of the amount of annuity
20 which her deceased husband would have been entitled to
21 receive had he withdrawn from the service on the day
22 immediately preceding the date of his death, conditional upon
23 such widow having attained the age of 60 or more years on
24 such date. Such amount of widow's annuity shall not, however,
25 exceed the sum of $500 a month if death in service occurs
26 before July 1, 1985.
27 If such widow of such described employee shall not be 60
28 or more years of age on such date of death, the amount
29 provided in the immediately preceding paragraph for a widow
30 60 or more years of age, shall, in the case of such younger
31 widow, be reduced by 1/2 of 1 per cent for each month that
32 her then attained age is less than 60 years; except that such
33 younger widow of an employee who dies while in service on or
34 after July 1, 1985 with at least 30 years of service, shall
-97- LRB9207762EGfg
1 not be subject to the reduction in widow's annuity because of
2 her age less than 60 on the date of the employee's death.
3 (b) The widow, of any employee who dies subsequent to
4 the date of his retirement on annuity, and who so retired on
5 or after the date on which he attained the age of 60 or more
6 years with at least 20 years of service, or 10 or more years
7 of service if retirement occurs on or after attainment of age
8 65 and on or after January 1, 1982, 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 the age
12 of 60 or more years on the date of her husband's retirement
13 on annuity. Such amount of widow's annuity shall not,
14 however, exceed the sum of $500 a month if the death occurs
15 before the effective date of this amendatory Act of 1991.
16 If such widow of such described employee shall not have
17 attained such age of 60 or more years on such date of her
18 husband's retirement on annuity, the amount provided in the
19 immediately preceding paragraph for a widow 60 or more years
20 of age on the date of her husband's retirement on annuity,
21 shall, in the case of such then younger widow, be reduced by
22 1/2 of 1 per cent for each month that her then attained age
23 was less than 60 years; except that such younger widow of an
24 employee retiring on or after July 1, 1985 with at least 30
25 years of service, shall not be subject to the reduction in
26 widow's annuity because of her age less than 60 on the date
27 of the employee's retirement.
28 (c) The foregoing provisions relating to minimum
29 annuities for widows shall not apply to the widow of any
30 former county employee receiving an annuity from the Fund on
31 June 11, 1965, who re-enters service as a county employee,
32 unless such employee renders at least 3 years of additional
33 service after the date of re-entry.
34 (d) An annuity being paid to a surviving spouse on
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1 January 1, 1984 shall be increased by 10% and shall
2 thereafter be paid at the increased rate until the
3 termination of the annuity by death or other cause. The
4 annuity for a qualifying widow shall not exceed $500 per
5 month.
6 (e) The widow of any employee who dies while in service
7 on or after July 1, 1985 but prior to January 1, 1988, and
8 the widow of an employee who retires on or after July 1, 1985
9 but prior to January 1, 1988 with at least 10 years of
10 service, and the widow of an employee who retires on or after
11 January 1, 1984 but prior to July 1, 1985 with at least 30
12 years of service, shall be entitled to an annuity equal to
13 one-half of the amount of annuity which her deceased husband
14 would have received had he retired immediately prior to his
15 death or one-half the amount of the originally granted
16 retirement annuity, whichever is applicable. Such widow's
17 annuity will be reduced 0.5% for each month that the widow's
18 attained age is less than age 60 on the date of the
19 employee's death in service or retirement if the employee's
20 death in service or retirement is before January 1, 1988;
21 except that such younger widow of an employee with at least
22 30 years of service shall not be subject to the reduction in
23 widow's annuity because of her age less than 60 on the date
24 of the employee's death in service or retirement.
25 The widow of an employee who dies in service on or after
26 January 1, 1988, or retires on or after January 1, 1988 with
27 at least 10 years of service, shall be entitled to an annuity
28 equal to 1/2 of the amount of annuity which her deceased
29 husband would have received had he retired immediately prior
30 to his death or 1/2 of the amount of the annuity which her
31 deceased husband received as of the date of his death,
32 whichever is applicable. Such widow's annuity shall be
33 reduced 0.5% for each month that the widow's attained age is
34 less than age 60 on the date of the employee's death if
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1 employee's death in service or retirement is after January 1,
2 1988; except that such younger widow of an employee with at
3 least 30 years of service shall not be subject to the
4 reduction in widow's annuity because of her age on the date
5 of the employee's death.
6 In lieu of any other annuity provided by this Article,
7 the widow of an employee who dies in service on or after
8 January 1, 1992, or retires on or after January 1, 1992 with
9 at least 10 years of service, shall be entitled to an annuity
10 equal to 1/2 of the amount of annuity which her deceased
11 husband would have received had he retired immediately prior
12 to his death or 1/2 of the amount of the annuity which her
13 deceased husband received as of the date of his death,
14 whichever is applicable. Such widow's annuity shall be
15 reduced 0.5% for each month that the widow's attained age is
16 less than age 55 on the date of the employee's death; except
17 that such younger widow of an employee with at least 30 years
18 of service shall not be subject to the reduction in widow's
19 annuity because of her age on the date of the employee's
20 death.
21 In lieu of any other annuity provided by this Article,
22 the widow of an employee who dies in service or withdraws
23 from service on or after January 1, 1992 but before January
24 1, 1993 at age 55 or over with at least 5 but less than 10
25 years of service, shall be entitled to an annuity equal to
26 half of the amount of annuity which her deceased husband
27 would have received had he retired immediately prior to his
28 death or half of the amount of the annuity which her deceased
29 husband received as of the date of his death, whichever is
30 applicable. This widow's annuity shall be reduced 0.5% for
31 each month that the widow's attained age is less than 60 on
32 the date of the employee's death.
33 However, in the case of an employee dying in service, the
34 amount of widow's annuity shall not be less than 10% of the
-100- LRB9207762EGfg
1 highest average annual salary for any 4 consecutive years
2 within the last 10 years of service immediately preceding the
3 date of withdrawal. The maximum amount of annuity under this
4 paragraph shall not be limited to a dollar maximum. The
5 provisions of this paragraph shall not apply to the widow of
6 any former County employee receiving an annuity from the fund
7 who re-enters service as a County employee, unless such
8 employee renders at least 3 years of additional service after
9 the date of re-entry.
10 (f) An annuity being paid to a surviving spouse on July
11 1, 1988, shall be increased on that date by 1% for each full
12 year that has elapsed from the date the annuity began.
13 (g) In lieu of any other annuity provided under this
14 Article, if the deceased employee was receiving a retirement
15 annuity at the time of his death and that death occurs on or
16 after January 1, 1993, the widow's annuity shall be 50% of
17 the deceased employee's retirement annuity at the time of
18 death, reduced by 0.5% for each month that the widow's age on
19 the date of death is less than 55, except that the reduction
20 does not apply if the deceased employee had at least 30 years
21 of service.
22 (h) In lieu of any other annuity provided under this
23 Article, the widow of an employee who dies in service on or
24 after January 1, 2001 or has at least 10 years of service and
25 dies on or after January 1, 2001 while receiving an annuity
26 shall be entitled to a widow's annuity equal to 65% of the
27 amount of annuity which her deceased husband would have
28 received had he retired immediately prior to his death or 65%
29 of the amount of the annuity which her deceased husband
30 received as of the date of his death, whichever is
31 applicable. This widow's annuity shall be reduced by 0.5%
32 for each month that the widow's age on the date of the
33 employee's death is less than 55, unless the deceased husband
34 had at least 30 years of service.
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1 (Source: P.A. 86-273; 87-794; 87-1265.)
2 (40 ILCS 5/9-163) (from Ch. 108 1/2, par. 9-163)
3 Sec. 9-163. Restoration of rights. An employee who has
4 withdrawn as a refund the amounts credited for annuity
5 purposes, and who re-enters service and serves for periods
6 comprising at least 2 years after the date of the last refund
7 paid to him, may have his annuity rights restored by making
8 application to the board in writing for the privilege of
9 reinstating such rights and by compliance with the following
10 provisions:
11 (a) The employee shall repay in full to the fund
12 while in service all refunds received, together with
13 interest at the effective rate from the application date
14 of such refund or refunds to the date of repayment.
15 (b) If payment is not made in a single sum, the
16 repayment may be made in installments by deductions from
17 salary or otherwise in such amounts as the employee may
18 elect to pay, with interest at the effective rate
19 accruing on unpaid balances.
20 (c) If the employee withdraws from service or dies
21 in service before full repayment is made, or during the
22 required return to service, the amounts repaid, including
23 interest repaid but without further interest, shall be
24 refunded in accordance with the refund provisions of this
25 Article.
26 For an employee who applies to the Fund to reinstate
27 credit and repay a refund between January 1, 1993 and March
28 1, 1993, the 2 year minimum period of subsequent service
29 required under item (a) shall be instead a period of 6
30 months.
31 A person who establishes service credit under Section
32 9-121.16 may, at the same time, reinstate credit in this Fund
33 and repay a refund without a return to service,
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1 notwithstanding the other provisions of this Section.
2 (Source: P.A. 87-1265.)
3 (40 ILCS 5/9-179.1) (from Ch. 108 1/2, par. 9-179.1)
4 Sec. 9-179.1. Military service. A contributing employee
5 as of January 1, 1993 with at least 20 25 years of service
6 credit may apply for creditable service for up to 2 years of
7 military service whether or not the military service followed
8 service as a county employee. The military service need not
9 have been served in wartime, but the employee must not have
10 been dishonorably discharged. To establish this creditable
11 service the applicant must pay to the Fund, while in the
12 service of the county, an amount determined by the Fund to
13 represent the employee contributions for the creditable
14 service established, based on the employee's rate of
15 compensation on his or her last day as a contributor before
16 the military service, or on his or her first day as a
17 contributor after the military service, whichever is greater,
18 plus interest at the effective rate from the date of
19 discharge to the date of payment. If a person who has
20 established any credit under this Section applies for or
21 receives any early retirement incentive under Section
22 9-134.2, the credit under this Section shall be forfeited and
23 the amount paid to the Fund under this Section shall be
24 refunded.
25 (Source: P.A. 87-1265.)
26 (40 ILCS 5/9-185) (from Ch. 108 1/2, par. 9-185)
27 Sec. 9-185. Board created.
28 (a) A board of 9 7 members shall constitute the board of
29 trustees authorized to carry out the provisions of this
30 Article. The board of trustees shall be known as "The
31 Retirement Board of the County Employees' Annuity and Benefit
32 Fund of .... County". The board shall consist of 2 members
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1 appointed and 7 5 members elected as hereinafter prescribed.
2 (b) The appointed members shall be appointed as follows:
3 One member shall be appointed by the comptroller of such
4 county, who may be the comptroller or some person chosen by
5 him from among employees of the county, who are versed in the
6 affairs of the comptroller's office; and one member shall be
7 appointed by the treasurer of such county, who may be the
8 treasurer or some person chosen by him from among employees
9 of the County who are versed in the affairs of the
10 treasurer's office.
11 The member appointed by the comptroller shall hold office
12 for a term ending on December 1st of the first year following
13 the year of appointment. The member appointed by the county
14 treasurer shall hold office for a term ending on December 1st
15 of the second year following the year of appointment.
16 Thereafter, each appointed member shall be appointed by
17 the officer that appointed his predecessor for a term of 2
18 years.
19 (c) Three county employee members of the board shall be
20 elected as follows: within 30 days from and after the date
21 upon which this Article comes into effect in the county, the
22 clerk of the county shall arrange for and hold an election.
23 One employee shall be elected for a term ending on the first
24 day in the month of December of the first year next following
25 the effective date; one for a term ending on December 1st of
26 the following year; and one for a term ending December 1st of
27 the second following year.
28 (d) Beginning December 1, 1988, and every 3 years
29 thereafter, an annuitant member of the board shall be elected
30 as follows: the board shall arrange for and hold an election
31 in which only those participants who are currently receiving
32 retirement or disability benefits under this Article shall be
33 eligible to vote and be elected. Each such member shall be
34 elected to a term ending on the first day in the month of
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1 December of the third following year.
2 (d-1) Beginning December 1, 2001, and every 3 years
3 thereafter, an annuitant member of the board shall be elected
4 as follows: the board shall arrange for and hold an election
5 in which only those participants who are currently receiving
6 retirement or disability benefits under this Article shall be
7 eligible to vote and be elected. Each such member shall be
8 elected to a term ending on the first day in the month of
9 December of the third following year. Until December 1,
10 2001, the position created under this subsection (d-1) may be
11 filled by the board as in the case of a vacancy.
12 (e) Beginning December 1, 1988, if a Forest Preserve
13 District Employees' Annuity and Benefit Fund shall be in
14 force in such county and the board of this fund is charged
15 with administering the affairs of such annuity and benefit
16 fund for employees of such forest preserve district, a forest
17 preserve district member of the board shall be elected as of
18 December 1, 1988, and every 3 years thereafter as follows:
19 the board shall arrange for and hold an election in which
20 only those employees of such forest preserve district who are
21 contributors to the annuity and benefit fund for employees of
22 such forest preserve district shall be eligible to vote and
23 be elected. Each such member shall be elected to a term
24 ending on the first day in the month of December of the third
25 following year.
26 (f) Beginning December 1, 2001, and every 3 years
27 thereafter, if a Forest Preserve District Employees' Annuity
28 and Benefit Fund is in force in the county and the board of
29 this Fund is charged with administering the affairs of that
30 annuity and benefit fund for employees of the forest preserve
31 district, a forest preserve district annuitant member of the
32 board shall be elected as follows: the board shall arrange
33 for and hold an election in which only those participants who
34 are currently receiving retirement benefits under Article 10
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1 shall be eligible to vote and be elected. Each such member
2 shall be elected to a term ending on the first day in the
3 month of December of the third following year. Until
4 December 1, 2001, the position created under this subsection
5 (f) may be filled by the board as in the case of a vacancy.
6 (Source: P.A. 85-964; 86-1488.)
7 (40 ILCS 5/9-186) (from Ch. 108 1/2, par. 9-186)
8 Sec. 9-186. Board elections. In each year, the board
9 shall conduct a regular election, under rules adopted by it,
10 at least 30 days prior to the expiration of the term of each
11 elected employee or annuitant member.
12 To be eligible to be a county employee member, a person
13 must be an employee of the county and must have at least 5
14 years of service credit in that capacity by December 1 of the
15 year of election. To be eligible to be a forest preserve
16 district member, a person must be an employee of the forest
17 preserve district and must have at least 5 years of service
18 credit in that capacity by December 1 of the year of
19 election.
20 Only those persons who are employees of the county shall
21 be eligible to vote for the 3 county employee members, only
22 those persons who are employees of the forest preserve
23 district shall be eligible to vote for the forest preserve
24 district member, and only those persons who are currently
25 receiving retirement or disability benefits under this
26 Article shall be eligible to vote for the annuitant members
27 elected under subsections (d) and (d-1) of Section 9-185, and
28 only those persons who are currently receiving retirement
29 benefits under Article 10 shall be eligible to vote for the
30 forest preserve district annuitant member elected under
31 subsection (f) of Section 9-185. The ballot shall be of
32 secret character.
33 Except as otherwise provided in Section 9-187, each
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1 member of the board shall hold office until his successor is
2 chosen and has qualified.
3 Any person elected or appointed a member of the board
4 shall qualify for the office by taking an oath of office to
5 be administered by the county clerk or a person designated by
6 him. A copy thereof shall be kept in the office of the
7 county clerk. Any appointment or notice of election shall be
8 in writing and the written instrument shall be filed with the
9 oath.
10 (Source: P.A. 85-964; 86-1488.)
11 (40 ILCS 5/9-187) (from Ch. 108 1/2, par. 9-187)
12 Sec. 9-187. Board vacancy.
13 (a) A vacancy in the membership of the board shall be
14 filled as follows:
15 If the vacancy is that of an appointive member, the
16 official who appointed him shall appoint a person to serve
17 for the unexpired term.
18 If the vacancy is that of a county employee member, the
19 remaining members of the board shall appoint a successor from
20 among the employees of the county, who shall serve during the
21 remainder of the unexpired term.
22 If the vacancy is that of a forest preserve district
23 member, the remaining members of the board shall appoint a
24 successor from among the employees of the forest preserve
25 district, who shall serve during the remainder of the
26 unexpired term.
27 If the vacancy is that of an annuitant member other than
28 a forest preserve district annuitant member, the remaining
29 members of the board shall appoint a successor from among
30 those persons who are currently receiving retirement or
31 disability benefits under this Article.
32 If the vacancy is that of a forest preserve district
33 annuitant member, the remaining members of the board shall
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1 appoint a successor from among those persons who are
2 currently receiving retirement benefits under Article 10.
3 (b) Any county or forest preserve district member who
4 withdraws from service shall automatically cease to be a
5 member of the board. Any annuitant member other than a
6 forest preserve district annuitant member whose retirement or
7 disability benefits cease under this Article, and any forest
8 preserve district annuitant member whose retirement benefits
9 cease under Article 10, shall also automatically cease to be
10 a member of the Board.
11 (Source: P.A. 85-964; 86-1488.)
12 (40 ILCS 5/9-219) (from Ch. 108 1/2, par. 9-219)
13 Sec. 9-219. Computation of service.
14 (1) In computing the term of service of an employee
15 prior to the effective date, the entire period beginning on
16 the date he was first appointed and ending on the day before
17 the effective date, except any intervening period during
18 which he was separated by withdrawal from service, shall be
19 counted for all purposes of this Article.
20 (2) In computing the term of service of any employee on
21 or after the effective date, the following periods of time
22 shall be counted as periods of service for age and service,
23 widow's and child's annuity purposes:
24 (a) The time during which he performed the duties
25 of his position.
26 (b) Vacations, leaves of absence with whole or part
27 pay, and leaves of absence without pay not longer than 90
28 days.
29 (c) For an employee who is a member of a county
30 police department or a correctional officer with the
31 county department of corrections, approved leaves of
32 absence without pay during which the employee serves as a
33 full-time officer or employee head of an employee
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1 association, the membership of which consists of other
2 participants in the Fund police officers, provided that
3 the employee contributes to the Fund (1) the amount that
4 he would have contributed had he remained an active
5 employee member of the county police department in the
6 position he occupied at the time the leave of absence was
7 granted, (2) an amount calculated by the Board
8 representing employer contributions, and (3) regular
9 interest thereon from the date of service to the date of
10 payment. However, if the employee's application to
11 establish credit under this subsection is received by the
12 Fund on or after January 1, 2002 and before July 1, 2002,
13 the amount representing employer contributions specified
14 in item (2) shall be waived.
15 For a former member of a county police department
16 who has received a refund under Section 9-164, periods
17 during which the employee serves as head of an employee
18 association, the membership of which consists of other
19 police officers, provided that the employee contributes
20 to the Fund (1) the amount that he would have contributed
21 had he remained an active member of the county police
22 department in the position he occupied at the time he
23 left service, (2) an amount calculated by the Board
24 representing employer contributions, and (3) regular
25 interest thereon from the date of service to the date of
26 payment. However, if the former member of the county
27 police department retires on or after January 1, 1993 but
28 no later than March 1, 1993, the amount representing
29 employer contributions specified in item (2) shall be
30 waived.
31 (d) Any period of disability for which he received
32 disability benefit or whole or part pay.
33 (e) Accumulated vacation or other time for which an
34 employee who retires on or after November 1, 1990
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1 receives a lump sum payment at the time of retirement,
2 provided that contributions were made to the fund at the
3 time such lump sum payment was received. The service
4 granted for the lump sum payment shall not change the
5 employee's date of withdrawal for computing the effective
6 date of the annuity.
7 (f) An employee may receive service credit for
8 annuity purposes for accumulated sick leave as of the
9 date of the employee's withdrawal from service, not to
10 exceed a total of 180 days, provided that the amount of
11 such accumulated sick leave is certified by the County
12 Comptroller to the Board and the employee pays an amount
13 equal to 8.5% (9% for members of the County Police
14 Department who are eligible to receive an annuity under
15 Section 9-128.1) of the amount that would have been paid
16 had such accumulated sick leave been paid at the
17 employee's final rate of salary. Such payment shall be
18 made within 30 days after the date of withdrawal and
19 prior to receipt of the first annuity check. The service
20 credit granted for such accumulated sick leave shall not
21 change the employee's date of withdrawal for the purpose
22 of computing the effective date of the annuity.
23 (3) In computing the term of service of an employee on
24 or after the effective date for ordinary disability benefit
25 purposes, the following periods of time shall be counted as
26 periods of service:
27 (a) Unless otherwise specified in Section 9-157,
28 the time during which he performed the duties of his
29 position.
30 (b) Paid vacations and leaves of absence with whole
31 or part pay.
32 (c) Any period for which he received duty
33 disability benefit.
34 (d) Any period of disability for which he received
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1 whole or part pay.
2 (4) For an employee who on January 1, 1958, was
3 transferred by Act of the 70th General Assembly from his
4 position in a department of welfare of any city located in
5 the county in which this Article is in force and effect to a
6 similar position in a department of such county, service
7 shall also be credited for ordinary disability benefit and
8 child's annuity for such period of department of welfare
9 service during which period he was a contributor to a
10 statutory annuity and benefit fund in such city and for which
11 purposes service credit would otherwise not be credited by
12 virtue of such involuntary transfer.
13 (5) An employee described in subsection (e) of Section
14 9-108 shall receive credit for child's annuity and ordinary
15 disability benefit for the period of time for which he was
16 credited with service in the fund from which he was
17 involuntarily separated through class or group transfer;
18 provided, that no such credit shall be allowed to the extent
19 that it results in a duplication of credits or benefits, and
20 neither shall such credit be allowed to the extent that it
21 was or may be forfeited by the application for and acceptance
22 of a refund from the fund from which the employee was
23 transferred.
24 (6) Overtime or extra service shall not be included in
25 computing service. Not more than 1 year of service shall be
26 allowed for service rendered during any calendar year.
27 (Source: P.A. 86-1488; 87-794; 87-1265.)
28 (40 ILCS 5/11-125.8)
29 Sec. 11-125.8. Service as police officer, firefighter, or
30 teacher.
31 (a) Service rendered by an employee as a police officer
32 and member of the regularly constituted police department of
33 the city, or as a firefighter and regular member of the paid
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1 fire department of the city, or as a teacher in the public
2 school system in the city shall be counted, for the purposes
3 of this Article, as service rendered as an employee of the
4 city. Salary received for any such service shall be treated,
5 for the purposes of this Article, as salary received for the
6 performance of duty as an employee.
7 (b) Credit shall be granted under subsection (a) only if
8 (1) the employee pays to the Fund prior to his or her
9 separation from service an amount equal to the employee
10 contributions that would have been payable for that service,
11 based on the salary actually received, plus interest at the
12 effective rate, and (2) the employee has terminated any
13 credit for that service earned in any other annuity and
14 benefit fund or pension fund in operation in the city for the
15 benefit of police officers, firefighters, or teachers. The
16 amount transferred to the Fund under item (1) of Section
17 5-233.1, if any, shall be credited against the contributions
18 required under this subsection.
19 (Source: P.A. 90-31, eff. 6-27-97.)
20 (40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
21 Sec. 11-134. Minimum annuities.
22 (a) An employee whose withdrawal occurs after July 1,
23 1957 at age 60 or over, with 20 or more years of service, (as
24 service is defined or computed in Section 11-216), for whom
25 the age and service and prior service annuity combined is
26 less than the amount stated in this Section, shall, from and
27 after the date of withdrawal, in lieu of all annuities
28 otherwise provided in this Article, be entitled to receive an
29 annuity for life of an amount equal to 1 2/3% for each year
30 of service, of the highest average annual salary for any 5
31 consecutive years within the last 10 years of service
32 immediately preceding the date of withdrawal; provided, that
33 in the case of any employee who withdraws on or after July 1,
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1 1971, such employee age 60 or over with 20 or more years of
2 service, shall be entitled to instead receive an annuity for
3 life equal to 1.67% for each of the first 10 years of
4 service; 1.90% for each of the next 10 years of service;
5 2.10% for each year of service in excess of 20 but not
6 exceeding 30; and 2.30% for each year of service in excess of
7 30, based on the highest average annual salary for any 4
8 consecutive years within the last 10 years of service
9 immediately preceding the date of withdrawal.
10 An employee who withdraws after July 1, 1957 and before
11 January 1, 1988, with 20 or more years of service, before age
12 60, shall be entitled to an annuity, to begin not earlier
13 than age 55, if under such age at withdrawal, as computed in
14 the last preceding paragraph, reduced 0.25% if the employee
15 was born before January 1, 1936, or 0.5% if the employee was
16 born on or after January 1, 1936, for each full month or
17 fractional part thereof that his attained age when such
18 annuity is to begin is less than 60.
19 Any employee born before January 1, 1936 who withdraws
20 with 20 or more years of service, and any employee with 20 or
21 more years of service who withdraws on or after January 1,
22 1988, may elect to receive, in lieu of any other employee
23 annuity provided in this Section, an annuity for life equal
24 to 1.80% for each of the first 10 years of service, 2.00% for
25 each of the next 10 years of service, 2.20% for each year of
26 service in excess of 20, but not exceeding 30, and 2.40% for
27 each year of service in excess of 30, of the highest average
28 annual salary for any 4 consecutive years within the last 10
29 years of service immediately preceding the date of
30 withdrawal, to begin not earlier than upon attained age of 55
31 years, if under such age at withdrawal, reduced 0.25% for
32 each full month or fractional part thereof that his attained
33 age when annuity is to begin is less than 60; except that an
34 employee retiring on or after January 1, 1988, at age 55 or
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1 over but less than age 60, having at least 35 years of
2 service, or an employee retiring on or after July 1, 1990, at
3 age 55 or over but less than age 60, having at least 30 years
4 of service, or an employee retiring on or after the effective
5 date of this amendatory Act of 1997, at age 55 or over but
6 less than age 60, having at least 25 years of service, shall
7 not be subject to the reduction in retirement annuity because
8 of retirement below age 60.
9 However, in the case of an employee who retired on or
10 after January 1, 1985 but before January 1, 1988, at age 55
11 or older and with at least 35 years of service, and who was
12 subject under this subsection (a) to the reduction in
13 retirement annuity because of retirement below age 60, that
14 reduction shall cease to be effective January 1, 1991, and
15 the retirement annuity shall be recalculated accordingly.
16 Any employee who withdraws on or after July 1, 1990, with
17 20 or more years of service, may elect to receive, in lieu of
18 any other employee annuity provided in this Section, an
19 annuity for life equal to 2.20% for each year of service of
20 the highest average annual salary for any 4 consecutive years
21 within the last 10 years of service immediately preceding the
22 date of withdrawal, to begin not earlier than upon attained
23 age of 55 years, if under such age at withdrawal, reduced
24 0.25% for each full month or fractional part thereof that his
25 attained age when annuity is to begin is less than 60; except
26 that an employee retiring at age 55 or over but less than age
27 60, having at least 30 years of service, shall not be subject
28 to the reduction in retirement annuity because of retirement
29 below age 60.
30 Any employee who withdraws on or after the effective date
31 of this amendatory Act of 1997 with 20 or more years of
32 service may elect to receive, in lieu of any other employee
33 annuity provided in this Section, an annuity for life equal
34 to 2.20%, for each year of service of the highest average
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1 annual salary for any 4 consecutive years within the last 10
2 years of service immediately preceding the date of
3 withdrawal, to begin not earlier than upon attainment of age
4 55 (age 50 if the employee has at least 30 years of service),
5 reduced 0.25% for each full month or remaining fractional
6 part thereof that the employee's attained age when annuity is
7 to begin is less than 60; except that an employee retiring at
8 age 50 or over with at least 30 years of service or at age 55
9 or over with at least 25 years of service shall not be
10 subject to the reduction in retirement annuity because of
11 retirement below age 60.
12 The maximum annuity payable under this paragraph (a) of
13 this Section shall not exceed 70% of highest average annual
14 salary in the case of an employee who withdraws prior to July
15 1, 1971, 75% if withdrawal takes place on or after July 1,
16 1971. For the purpose of the minimum annuity provided in
17 said paragraphs $1,500 shall be considered the minimum annual
18 salary for any year; and the maximum annual salary to be
19 considered for the computation of such annuity shall be
20 $4,800 for any year prior to 1953, $6,000 for the years 1953
21 to 1956, inclusive, and the actual annual salary, as salary
22 is defined in this Article, for any year thereafter.
23 (b) For an employee receiving disability benefit, his
24 salary for annuity purposes under this Section shall, for all
25 periods of disability benefit subsequent to the year 1956, be
26 the amount on which his disability benefit was based.
27 (c) An employee with 20 or more years of service, whose
28 entire disability benefit credit period expires prior to
29 attainment of age 55 while still disabled for service, shall
30 be entitled upon withdrawal to the larger of (1) the minimum
31 annuity provided above assuming that he is then age 55, and
32 reducing such annuity to its actuarial equivalent at his
33 attained age on such date, or (2) the annuity provided from
34 his age and service and prior service annuity credits.
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1 (d) The minimum annuity provisions as aforesaid shall
2 not apply to any former employee receiving an annuity from
3 the fund, and who re-enters service as an employee, unless he
4 renders at least 3 years of additional service after the date
5 of re-entry.
6 (e) An employee in service on July 1, 1947, or who
7 became a contributor after July 1, 1947 and prior to July 1,
8 1950, or who shall become a contributor to the fund after
9 July 1, 1950 prior to attainment of age 70, who withdraws
10 after age 65 with less than 20 years of service, for whom the
11 annuity has been fixed under the foregoing Sections of this
12 Article shall, in lieu of the annuity so fixed, receive an
13 annuity as follows:
14 Such amount as he could have received had the accumulated
15 amounts for annuity been improved with interest at the
16 effective rate to the date of his withdrawal, or to
17 attainment of age 70, whichever is earlier, and had the city
18 contributed to such earlier date for age and service annuity
19 the amount that would have been contributed had he been under
20 age 65, after the date his annuity was fixed in accordance
21 with this Article, and assuming his annuity were computed
22 from such accumulations as of his age on such earlier date.
23 The annuity so computed shall not exceed the annuity which
24 would be payable under the other provisions of this Section
25 if the employee was credited with 20 years of service and
26 would qualify for annuity thereunder.
27 (f) In lieu of the annuity provided in this or in any
28 other Section of this Article, an employee having attained
29 age 65 with at least 15 years of service who withdraws from
30 service on or after July 1, 1971 and whose annuity computed
31 under other provisions of this Article is less than the
32 amount provided under this paragraph shall be entitled to
33 receive a minimum annual annuity for life equal to 1% of the
34 highest average annual salary for any 4 consecutive years
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1 within the last 10 years of service immediately preceding
2 retirement for each year of his service plus the sum of $25
3 for each year of service. Such annual annuity shall not
4 exceed the maximum percentages stated under paragraph (a) of
5 this Section of such highest average annual salary.
6 (f-1) Instead of any other retirement annuity provided
7 in this Article, an employee who has at least 10 years of
8 service and withdraws from service on or after January 1,
9 1999 may elect to receive a retirement annuity for life,
10 beginning no earlier than upon attainment of age 60, equal to
11 2.2% of final average salary for each year of service,
12 subject to a maximum of 75% of final average salary. For the
13 purpose of calculating this annuity, "final average salary"
14 means the highest average annual salary for any 4 consecutive
15 years in the last 10 years of service.
16 (g) Any annuity payable under the preceding subsections
17 of this Section 11-134 shall be paid in equal monthly
18 installments.
19 (h) The amendatory provisions of part (a) and (f) of
20 this Section shall be effective July 1, 1971 and apply in the
21 case of every qualifying employee withdrawing on or after
22 July 1, 1971.
23 (i) The amendatory provisions of this amendatory Act of
24 1985 relating to the discount of annuity because of
25 retirement prior to attainment of age 60 and increasing the
26 retirement formula for those born before January 1, 1936,
27 shall apply only to qualifying employees withdrawing on or
28 after August 16, 1985.
29 (j) Beginning on January 1, 2001 1999, the minimum
30 amount of employee's annuity shall be $1,250 $850 per month
31 for life for the following classes of employees, without
32 regard to the fact that withdrawal occurred prior to the
33 effective date of this amendatory Act of the 92nd General
34 Assembly 1998:
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1 (1) any employee annuitant alive and receiving a
2 life annuity on the effective date of this amendatory Act
3 of the 92nd General Assembly 1998, except a reciprocal
4 annuity;
5 (2) any employee annuitant alive and receiving a
6 term annuity on the effective date of this amendatory Act
7 of the 92nd General Assembly 1998, except a reciprocal
8 annuity;
9 (3) any employee annuitant alive and receiving a
10 reciprocal annuity on the effective date of this
11 amendatory Act of the 92nd General Assembly 1998, whose
12 service in this fund is at least 5 years;
13 (4) any employee annuitant withdrawing after age 60
14 on or after the effective date of this amendatory Act of
15 the 92nd General Assembly 1998, with at least 10 years of
16 service in this fund.
17 The increases granted under items (1), (2) and (3) of
18 this subsection (j) shall not be limited by any other Section
19 of this Act.
20 (Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97;
21 90-766, eff. 8-14-98.)
22 (40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
23 Sec. 11-145.1. Minimum annuities for widows. The widow
24 otherwise eligible for widow's annuity under other Sections
25 of this Article 11, of an employee hereinafter described, who
26 retires from service or dies while in the service subsequent
27 to the effective date of this amendatory provision, and for
28 which widow the amount of widow's annuity and widow's prior
29 service annuity combined, fixed or provided for such widow
30 under other provisions of said Article 11 is less than the
31 amount hereinafter provided in this section, shall, from and
32 after the date her otherwise provided annuity would begin, in
33 lieu of such otherwise provided widow's and widow's prior
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1 service annuity, be entitled to the following indicated
2 amount of annuity:
3 (a) The widow of any employee who dies while in service
4 on or after the date on which he attains age 60 if the death
5 occurs before July 1, 1990, or on or after the date on which
6 he attains age 55 if the death occurs on or after July 1,
7 1990, with at least 20 years of service, or on or after the
8 date on which he attains age 50 if the death occurs on or
9 after the effective date of this amendatory Act of 1997 with
10 at least 30 years of service, shall be entitled to an annuity
11 equal to one-half of the amount of annuity which her deceased
12 husband would have been entitled to receive had he withdrawn
13 from the service on the day immediately preceding the date of
14 his death, conditional upon such widow having attained age 60
15 on or before such date if the death occurs before July 1,
16 1990, or age 55 if the death occurs on or after July 1, 1990,
17 or age 50 if the death occurs on or after January 1, 1998 and
18 the employee is age 50 or over with at least 30 years of
19 service or age 55 or over with at least 25 years of service.
20 Except as provided in subsection (j), the widow's annuity
21 shall not, however, exceed the sum of $500 a month if the
22 employee's death in service occurs before January 23, 1987.
23 The widow's annuity shall not be limited to a maximum dollar
24 amount if the employee's death in service occurs on or after
25 January 23, 1987.
26 If the employee dies in service before July 1, 1990, and
27 if such widow of such described employee shall not be 60 or
28 more years of age on such date of death, the amount provided
29 in the immediately preceding paragraph for a widow 60 or more
30 years of age, shall, in the case of such younger widow, be
31 reduced by 0.25% for each month that her then attained age is
32 less than 60 years if the employee was born before January 1,
33 1936, or dies in service on or after January 1, 1988, or 0.5%
34 for each month that her then attained age is less than 60
-119- LRB9207762EGfg
1 years if the employee was born on or after January 1, 1936
2 and dies in service before January 1, 1988.
3 If the employee dies in service on or after July 1, 1990,
4 and if the widow of the employee has not attained age 55 on
5 or before the employee's date of death, the amount otherwise
6 provided in this subsection (a) shall be reduced by 0.25% for
7 each month that her then attained age is less than 55 years;
8 except that if the employee dies in service on or after
9 January 1, 1998 at age 50 or over with at least 30 years of
10 service or at age 55 or over with at least 25 years of
11 service, there shall be no reduction due to the widow's age
12 if she has attained age 50 on or before the employee's date
13 of death, and if the widow has not attained age 50 on or
14 before the employee's date of death the amount otherwise
15 provided in this subsection (a) shall be reduced by 0.25% for
16 each month that her then attained age is less than 50 years.
17 (b) The widow of any employee who dies subsequent to the
18 date of his retirement on annuity, and who so retired on or
19 after the date on which he attained age 60 if retirement
20 occurs before July 1, 1990, or on or after the date on which
21 he attained age 55 if retirement occurs on or after July 1,
22 1990, with at least 20 years of service, or on or after the
23 date on which he attained age 50 if the retirement occurs on
24 or after the effective date of this amendatory Act of 1997
25 with at least 30 years of service, shall be entitled to an
26 annuity equal to one-half of the amount of annuity which her
27 deceased husband received as of the date of his retirement on
28 annuity, conditional upon such widow having attained age 60
29 on or before the date of her husband's retirement on annuity
30 if retirement occurs before July 1, 1990, or age 55 if
31 retirement occurs on or after July 1, 1990, or age 50 if the
32 retirement on annuity occurs on or after January 1, 1998 and
33 the employee is age 50 or over with at least 30 years of
34 service or age 55 or over with at least 25 years of service.
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1 Except as provided in subsection (j), this widow's annuity
2 shall not, however, exceed the sum of $500 a month if the
3 employee's death occurs before January 23, 1987. The widow's
4 annuity shall not be limited to a maximum dollar amount if
5 the employee's death occurs on or after January 23, 1987,
6 regardless of the date of retirement; provided that, if
7 retirement was before January 23, 1987, the employee or
8 eligible spouse repays the excess spouse refund with interest
9 at the effective rate from the date of refund to the date of
10 repayment.
11 If the date of the employee's retirement on annuity is
12 before July 1, 1990, and if such widow of such described
13 employee shall not have attained such age of 60 or more years
14 on such date of her husband's retirement on annuity, the
15 amount provided in the immediately preceding paragraph for a
16 widow 60 or more years of age on the date of her husband's
17 retirement on annuity, shall, in the case of such then
18 younger widow, be reduced by 0.25% for each month that her
19 then attained age was less than 60 years if the employee was
20 born before January 1, 1936, or withdraws from service on or
21 after January 1, 1988, or 0.5% for each month that her then
22 attained age was less than 60 years if the employee was born
23 on or after January 1, 1936 and withdraws from service before
24 January 1, 1988.
25 If the date of the employee's retirement on annuity is on
26 or after July 1, 1990, and if the widow of the employee has
27 not attained age 55 by the date of the employee's retirement
28 on annuity, the amount otherwise provided in this subsection
29 (b) shall be reduced by 0.25% for each month that her then
30 attained age is less than 55 years; except that if the
31 employee retires on annuity on or after January 1, 1998 at
32 age 50 or over with at least 30 years of service or at age 55
33 or over with at least 25 years of service, there shall be no
34 reduction due to the widow's age if she has attained age 50
-121- LRB9207762EGfg
1 on or before the employee's date of death, and if the widow
2 has not attained age 50 on or before the employee's date of
3 death the amount otherwise provided in this subsection (b)
4 shall be reduced by 0.25% for each month that her then
5 attained age is less than 50 years.
6 (c) The foregoing provisions relating to minimum
7 annuities for widows shall not apply to the widow of any
8 former employee receiving an annuity from the fund on August
9 2, 1965 or on the effective date of this amendatory
10 provision, who re-enters service as a former employee, unless
11 such employee renders at least 3 years of additional service
12 after the date of re-entry.
13 (d) (Blank).
14 (e) (Blank).
15 (f) The amendments to this Section by this amendatory
16 Act of 1985, relating to changing the discount because of age
17 from 1/2 of 1% to 0.25% per month for widows of employees
18 born before January 1, 1936, shall apply only to qualifying
19 widows whose husbands die while in the service on or after
20 August 16, 1985 or withdraw and enter on annuity on or after
21 August 16, 1985.
22 (g) Beginning on January 1, 2001 1999, the minimum
23 amount of widow's annuity shall be $1,200 $800 per month for
24 life for the following classes of widows, without regard to
25 the fact that the death of the employee occurred prior to the
26 effective date of this amendatory Act of the 92nd General
27 Assembly 1998:
28 (1) any widow annuitant alive and receiving a term
29 annuity on the effective date of this amendatory Act of
30 the 92nd General Assembly 1998, except a reciprocal
31 annuity;
32 (2) any widow annuitant alive and receiving a life
33 annuity on the effective date of this amendatory Act of
34 the 92nd General Assembly 1998, except a reciprocal
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1 annuity;
2 (3) any widow annuitant alive and receiving a
3 reciprocal annuity on the effective date of this
4 amendatory Act of the 92nd General Assembly 1998, whose
5 employee spouse's service in this fund was at least 5
6 years;
7 (4) the widow of an employee with at least 10 years
8 of service in this fund who dies after retirement, if the
9 retirement occurred prior to the effective date of this
10 amendatory Act of the 92nd General Assembly 1998;
11 (5) the widow of an employee with at least 10 years
12 of service in this fund who dies after retirement, if
13 withdrawal occurs on or after the effective date of this
14 amendatory Act of the 92nd General Assembly 1998;
15 (6) the widow of an employee who dies in service
16 with at least 5 years of service in this fund, if the
17 death in service occurs on or after the effective date of
18 this amendatory Act of the 92nd General Assembly 1998.
19 The increases granted under items (1), (2), (3) and (4)
20 of this subsection (g) shall not be limited by any other
21 Section of this Act.
22 (h) The widow of an employee who retired or died in
23 service on or after January 1, 1985 and before July 1, 1990,
24 at age 55 or older, and with at least 35 years of service
25 credit, shall be entitled to have her widow's annuity
26 increased, effective January 1, 1991, to an amount equal to
27 50% of the retirement annuity that the deceased employee
28 received on the date of retirement, or would have been
29 eligible to receive if he had retired on the day preceding
30 the date of his death in service, provided that if the widow
31 had not attained age 60 by the date of the employee's
32 retirement or death in service, the amount of the annuity
33 shall be reduced by 0.25% for each month that her then
34 attained age was less than age 60 if the employee's
-123- LRB9207762EGfg
1 retirement or death in service occurred on or after January
2 1, 1988, or by 0.5% for each month that her attained age is
3 less than age 60 if the employee's retirement or death in
4 service occurred prior to January 1, 1988. However, in cases
5 where a refund of excess contributions for widow's annuity
6 has been paid by the Fund, the increase in benefit provided
7 by this subsection (h) shall be contingent upon repayment of
8 the refund to the Fund with interest at the effective rate
9 from the date of refund to the date of payment.
10 (i) If a deceased employee is receiving a retirement
11 annuity at the time of death and that death occurs on or
12 after June 27, 1997, the widow may elect to receive, in lieu
13 of any other annuity provided under this Article, 50% of the
14 deceased employee's retirement annuity at the time of death
15 reduced by 0.25% for each month that the widow's age on the
16 date of death is less than 55; except that if the employee
17 dies on or after January 1, 1998 and withdrew from service on
18 or after June 27, 1997 at age 50 or over with at least 30
19 years of service or at age 55 or over with at least 25 years
20 of service, there shall be no reduction due to the widow's
21 age if she has attained age 50 on or before the employee's
22 date of death, and if the widow has not attained age 50 on or
23 before the employee's date of death the amount otherwise
24 provided in this subsection (i) shall be reduced by 0.25% for
25 each month that her age on the date of death is less than 50
26 years. However, in cases where a refund of excess
27 contributions for widow's annuity has been paid by the Fund,
28 the benefit provided by this subsection (i) is contingent
29 upon repayment of the refund to the Fund with interest at the
30 effective rate from the date of refund to the date of
31 payment.
32 (j) For widows of employees who died before January 23,
33 1987 after retirement on annuity or in service, the maximum
34 dollar amount limitation on widow's annuity shall cease to
-124- LRB9207762EGfg
1 apply, beginning with the first annuity payment after the
2 effective date of this amendatory Act of 1997; except that if
3 a refund of excess contributions for widow's annuity has been
4 paid by the Fund, the increase resulting from this subsection
5 (j) shall not begin before the refund has been repaid to the
6 Fund, together with interest at the effective rate from the
7 date of the refund to the date of repayment.
8 (k) In lieu of any other annuity provided in this
9 Article, an eligible spouse of any employee who dies in
10 service at least 60 days after the effective date of this
11 amendatory Act of the 92nd General Assembly with at least 10
12 years of Laborers' service shall be entitled to an annuity of
13 60% of the minimum formula annuity earned and accrued to the
14 credit of the employee at the date of death, plus 1% for each
15 year of total Laborers' service, to a maximum of 85%. For
16 the purposes of this subsection, the minimum formula annuity
17 earned and accrued to the credit of the employee is equal to
18 2.40% for each year of service of the highest average annual
19 salary for any 4 consecutive years within the last 10 years
20 of service immediately preceding the date of death, to a
21 maximum of 80% of the highest average annual salary. This
22 annuity shall not be reduced due to the age of the employee
23 or spouse.
24 In lieu of any other annuity provided in this Article, an
25 eligible spouse of any employee annuitant who dies after
26 retirement at least 60 days after the effective date of this
27 amendatory Act of the 92nd General Assembly with at least 10
28 years of Laborers' service shall be entitled to an annuity of
29 60%, plus 1% for each year of total Laborers' service to a
30 maximum of 85%, of the deceased employee's retirement annuity
31 at the time of death reduced by 0.25% for each month that the
32 widow's age on the date of death is less than 55; except that
33 if the employee withdrew from service on or after June 27,
34 1997 at age 50 or over with at least 30 years of service or
-125- LRB9207762EGfg
1 at age 55 or over with at least 25 years of service, there
2 shall be no reduction due to the widow's age if she has
3 attained age 50 on or before the employee's date of death,
4 and if the widow has not attained age 50 on or before the
5 employee's date of death the amount otherwise provided in
6 this subsection (k) shall be reduced by 0.25% for each month
7 that her than attained age is less than 50 years. However,
8 in cases where a refund of excess contributions for widow's
9 annuity has been paid by the Fund, the benefit provided by
10 this subsection (k) is contingent upon repayment of the
11 refund to the Fund with interest at the effective rate from
12 the date of refund to the date of payment.
13 In addition to any other eligibility requirements under
14 this Article, the spouse is eligible for this annuity only if
15 the marriage was in effect for 10 full years or more at the
16 date of retirement or death in service.
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 5/11-153) (from Ch. 108 1/2, par. 11-153)
20 Sec. 11-153. Child's annuity.
21 (a) A "Child's Annuity" shall be payable monthly after
22 the death of an employee parent to an unmarried child until
23 the child's attainment of age 18 or marriage, whichever event
24 shall first occur, under the following conditions, if the
25 child was born or in esse before the employee attained age
26 65, and before he withdrew from service:
27 (1) upon death resulting from injury incurred in
28 the performance of an act of duty;
29 (2) upon death in service from any cause other than
30 injury incurred in the performance of duty, if the
31 employee has at least 4 years of service after the date
32 of his original entry into service, and at least 2 years
33 after the date of his latest re-entry;
-126- LRB9207762EGfg
1 (2)(3) upon death of an employee who withdraws from
2 service after age 55 (or after age 50 with at least 30
3 years of service if withdrawal is on or after June 27,
4 1997) and who has entered upon or is eligible for
5 annuity.
6 Payment shall be made as provided in Section 11-124.
7 (b) After July 24, 1967, an adopted child shall be
8 entitled to the same child's annuity benefits provided for
9 natural children in this Article, if:
10 (1) the child was legally adopted by the employee
11 at least one year prior to the death of the employee; and
12 (2) the child was adopted before the employee
13 withdrew from service attained age 55.
14 (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
15 (40 ILCS 5/11-156) (from Ch. 108 1/2, par. 11-156)
16 Sec. 11-156. Ordinary disability benefit. An employee,
17 while under age 65 and prior to January 1, 1979, or while
18 under age 70 and after January 1, 1979, who becomes disabled
19 after the effective date as the result of any cause other
20 than injury incurred in the performance of any act or acts of
21 duty, shall be entitled to ordinary disability benefit during
22 such disability, after the first 30 days thereof.
23 The disability benefit prescribed herein shall cease when
24 the first of the following dates shall occur and the
25 employee, if still disabled, shall thereafter be entitled to
26 such annuity as is otherwise provided in this Article:
27 (a) the date disability ceases.
28 (b) the date the disabled employee attains age 65 for
29 disability commencing prior to January 1, 1979.
30 (c) the date the disabled employee attains 65 for
31 disability commencing prior to attainment of age 60 in the
32 service and after January 1, 1979.
33 (d) the date the disabled employee attains the age of 70
-127- LRB9207762EGfg
1 for disability commencing after attainment of age 60 in the
2 service and after January 1, 1979.
3 (e) the date the payments of the benefit shall exceed in
4 the aggregate, throughout the employee's service, a period
5 equal to 1/4 of the total service rendered prior to the date
6 of disability but in no event more than 5 years. In computing
7 such total the following periods shall be excluded:
8 (i) Any period during which the employee received
9 ordinary disability benefit;
10 (ii) Any period of absence from duty, whether caused by
11 layoff, leave of absence or suspension of employment, or any
12 other reason, unless the board, upon satisfactory evidence,
13 finds that the disability resulted from a cause which existed
14 or occurred prior to such period of absence. No employee who
15 becomes disabled and whose disability begins during absence
16 from duty (other than while on vacation with pay) shall have
17 any right to ordinary disability benefit, except as herein
18 provided, until he recovers from such disability and performs
19 the duties of his position in the service for at least 15
20 consecutive days, Sundays and holidays excepted, after such
21 recovery.
22 The first payment shall be made not later than one month
23 after the benefit is granted and each subsequent payment
24 shall be made not later than one month after the last
25 preceding payment.
26 Ordinary disability benefit shall be 50% of the
27 employee's salary at the date of disability.
28 For ordinary disability benefits paid before January 1,
29 2001, before any payment, an amount equal to, less the sum
30 ordinarily deducted from salary for all annuity purposes for
31 such period for which the ordinary disability benefit is made
32 shall be deducted from such payment and credited to the
33 employee as a deduction from salary for that period. The
34 sums so deducted shall be credited to the employee and shall
-128- LRB9207762EGfg
1 be regarded, for annuity and refund purposes, as an amount
2 contributed by him.
3 For ordinary disability benefits paid on or after January
4 1, 2001, the fund shall credit sums equal to the amounts
5 ordinarily contributed by an employee for annuity purposes
6 for any period during which the employee receives ordinary
7 disability, and those sums shall be deemed for annuity
8 purposes and purposes of Section 11-169 as amounts
9 contributed by the employee. These amounts credited for
10 annuity purposes shall not be credited for refund purposes.
11 Any employee whose ordinary disability benefit was
12 terminated after January 1, 1979 by reason of his attainment
13 of age 65 and who continues disabled after age 65 may elect
14 before July 1, 1986 to have such benefits resumed beginning
15 at the time of such termination and continuing until
16 termination is required under this Section as amended by this
17 amendatory Act of 1985. The amount payable to any employee
18 for such resumed benefit for any period shall be reduced by
19 the amount of any retirement annuity paid to such employee
20 under this Article for the same period of time or by refund
21 paid in lieu of annuity.
22 (Source: P.A. 85-964.)
23 (40 ILCS 5/11-163) (from Ch. 108 1/2, par. 11-163)
24 Sec. 11-163. Restoration of rights. An employee who has
25 withdrawn as a refund the amounts credited for annuity
26 purposes, and who (i) re-enters service of the employer and
27 serves for periods comprising at least 90 days 2 years after
28 the date of the last refund paid to him or (ii) has completed
29 at least 2 years of service under a participating system (as
30 defined in the Retirement Systems Reciprocal Act) other than
31 this Fund after the date of the last refund, shall have his
32 annuity rights restored by making application to the board in
33 writing for the privilege of re-instating such rights and by
-129- LRB9207762EGfg
1 compliance with the following provisions:
2 (a) After such 90 day or 2 year period, whichever
3 applies, he shall repay in full to the fund, while in
4 service, in full all refunds received, together with
5 interest at the effective rate from the application dates
6 of such refund or refunds to the date of repayment.;
7 (b) If payment is not made in a single sum,
8 repayment may be made in installments by deductions from
9 salary or otherwise, in such manner and amounts as the
10 board, by rule, may prescribe, with interest at the
11 effective rate accruing on the unpaid balance employee
12 may elect. The employee shall be credited with interest
13 at the effective rate from the date of each installment
14 until full repayment is made.
15 (c) If the employee withdraws from service or dies
16 in service before full repayment is made or during the
17 required 90 day or 2 year period, service credit shall be
18 restored in accordance with Section 11-221.2(b) any
19 repayments made shall be refunded, without interest
20 thereon and in accordance with the refund provisions of
21 this Article.
22 (d) If the employee repays the refund while
23 participating in a participating system (as defined in
24 the Retirement Systems Reciprocal Act) other than this
25 Fund, the service credit restored must be used for a
26 proportional annuity calculated in accordance with the
27 Retirement Systems Reciprocal Act. If not so used, the
28 restored service credit shall be forfeited and the amount
29 of the repayment shall be refunded, without interest.
30 (Source: Laws 1963, p. 161.)
31 (40 ILCS 5/11-164) (from Ch. 108 1/2, par. 11-164)
32 Sec. 11-164. Refunds - Withdrawal before age 55 or with
33 less than 10 years of service.
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1 (1) An employee, without regard to length of service,
2 who withdraws before age 55, and any employee with less than
3 10 years of service who withdraws before age 60, shall be
4 entitled to a refund of the total sum accumulated to his
5 credit as of date of withdrawal for age and service annuity
6 and widow's annuity from amounts contributed by him or by the
7 City in lieu of employee contributions during duty
8 disability; provided that such amounts contributed by the
9 city after December 31, 1983 while the employee is receiving
10 duty disability benefits and amounts credited to the employee
11 for annuity purposes by the fund after December 31, 2000
12 while the employee is receiving ordinary disability benefits
13 shall not be credited for refund purposes.
14 The board may in its discretion withhold payment of
15 refund for a period not to exceed 6 months from the date of
16 withdrawal. Interest at the effective rate shall be paid on
17 any such refund withheld during such withheld period not to
18 exceed 6 months.
19 (2) Upon receipt of the refund, the employee surrenders
20 and forfeits all rights to any annuity or other benefits, for
21 himself and for any other persons who might have benefited
22 through him; provided that he may have such period of service
23 counted in computing the term of his service for age and
24 service annuity purposes only if he becomes an employee
25 before age 65.
26 (3) An employee who does not receive a refund shall have
27 all amounts to his credit for annuity purposes on the date of
28 his withdrawal improved by interest only until he becomes age
29 65, while out of service, at the effective rate, for his
30 benefit and the benefit of any person who may have any right
31 to annuity through him if he re-enters the service and
32 attains a right to annuity.
33 (4) Any such employee shall retain such right to refund
34 of such amounts when he shall apply for same, until he
-131- LRB9207762EGfg
1 re-enters the service or until the amount of annuity to which
2 he shall have a right shall have been fixed as provided in
3 this Article. Thereafter, no such right shall exist in the
4 case of any such employee.
5 (Source: P.A. 83-499.)
6 (40 ILCS 5/11-167) (from Ch. 108 1/2, par. 11-167)
7 Sec. 11-167. Refunds in lieu of annuity. In lieu of an
8 annuity, an employee who withdraws, and whose annuity would
9 amount to less than $800 a month for life may elect to
10 receive a refund of the total sum accumulated to his credit
11 from employee contributions for annuity purposes.
12 The widow of any employee, eligible for annuity upon the
13 death of her husband, whose annuity would amount to less than
14 $800 a month for life, may, in lieu of a widow's annuity,
15 elect to receive a refund of the accumulated contributions
16 for annuity purposes, based on the amounts contributed by her
17 deceased employee husband, but reduced by any amounts
18 theretofore paid to him in the form of an annuity or refund
19 out of such accumulated contributions.
20 Accumulated contributions shall mean the amounts
21 including interest credited thereon contributed by the
22 employee for age and service and widow's annuity to the date
23 of his withdrawal or death, whichever first occurs, and
24 including the accumulations from any amounts contributed for
25 him as salary deductions while receiving duty disability
26 benefits; provided that such amounts contributed by the city
27 after December 31, 1983 while the employee is receiving duty
28 disability benefits and amounts credited to the employee for
29 annuity purposes by the fund after December 31, 2000 while
30 the employee is receiving ordinary disability benefits shall
31 not be included.
32 The acceptance of such refund in lieu of widow's annuity,
33 on the part of a widow, shall not deprive a child or children
-132- LRB9207762EGfg
1 of the right to receive a child's annuity as provided for in
2 Sections 11-153 and 11-154 of this Article, and neither shall
3 the payment of a child's annuity in the case of such refund
4 to a widow reduce the amount herein set forth as refundable
5 to such widow electing a refund in lieu of widow's annuity.
6 (Source: P.A. 90-655, eff. 7-30-98; 91-887, eff. 7-6-00.)
7 (40 ILCS 5/11-170.1) (from Ch. 108 1/2, par. 11-170.1)
8 Sec. 11-170.1. Pickup of employee contributions.
9 (a) The employer may pick up the employee contributions
10 required by Sections 11-156, 11-170, 11-174 and 11-175.1 for
11 salary earned after December 31, 1981. If employee
12 contributions are not picked up, the amount that would have
13 been picked up under this amendatory Act of 1980 shall
14 continue to be deducted from salary. If contributions are
15 picked up they shall be treated as employer contributions in
16 determining tax treatment under the United States Internal
17 Revenue Code; however, the employer shall continue to
18 withhold Federal and state income taxes based upon these
19 contributions until the Internal Revenue Service or the
20 Federal courts rule that pursuant to Section 414(h) of the
21 United States Internal Revenue Code, these contributions
22 shall not be included as gross income of the employee until
23 such time as they are distributed or made available. The
24 employer shall pay these employee contributions from the same
25 source of funds which is used in paying salary to the
26 employee. The employer may pick up these contributions by a
27 reduction in the cash salary of the employee or by an offset
28 against a future salary increase or by a combination of a
29 reduction in salary and offset against a future salary
30 increase. If employee contributions are picked up they shall
31 be treated for all purposes of this Article 11, including
32 Section 11-169, in the same manner and to the same extent as
33 employee contributions made prior to the date picked up.
-133- LRB9207762EGfg
1 (b) Subject to the requirements of federal law and the
2 rules of the Board, the Fund may allow the employee to elect
3 to have the employer pick up the optional contributions that
4 the employee has elected to pay to the Fund, and the
5 contributions so picked up shall be treated as employer
6 contributions for the purpose of determining federal tax
7 treatment. The employer shall pick up the contributions by a
8 reduction in the cash salary of the employee and shall pay
9 contributions from the same source of funds that is used to
10 pay earnings of the employee. The election to have the
11 contributions picked up is irrevocable, and the optional
12 contributions may not thereafter be prepaid, by direct
13 payment or otherwise.
14 If the provision authorizing the optional contribution
15 requires payment by a stated date (rather than the date of
16 withdrawal or retirement), the requirement will be deemed to
17 have been satisfied if (i) on or before the stated date the
18 employee executes a valid irrevocable election to have the
19 contributions picked up under this subsection, and (ii) the
20 picked-up contributions are in fact paid to the Fund as
21 provided in the election.
22 If employee contributions are picked up under this
23 subsection, they shall be treated for all purposes of this
24 Article 11, including Section 11-169, in the same manner and
25 to the same extent as optional employee contributions made
26 prior to the date picked up.
27 (Source: P.A. 81-1536.)
28 (40 ILCS 5/12-127.6 new)
29 Sec. 12-127.6. Credit for employment with the
30 Metropolitan Pier and Exposition Authority.
31 (a) A person who has service credit in the Fund and has
32 not yet begun to receive a retirement annuity may establish
33 service credit in this Fund for periods before the effective
-134- LRB9207762EGfg
1 date of this Section during which he or she was employed by
2 the Metropolitan Pier and Exposition Authority or its
3 predecessor entities, provided that the person does not have
4 credit for those periods in any other public employee pension
5 fund or retirement system and has terminated participation
6 with respect to those periods of employment in any pension or
7 retirement program established by the Authority or its
8 predecessor entities. A person need not establish credit for
9 all such periods and may not establish more than 10 years of
10 service credit under this subsection. The credit established
11 shall be deemed to relate to the earliest period for which
12 the credit may be established.
13 In order to establish this credit, the person must apply
14 in writing to the Board and pay to the Fund an amount equal
15 to the sum of: (i) employee contributions based upon the
16 period of credit to be established, the employee contribution
17 rate in effect at the time of application, and the
18 applicant's salary rate on the last day of service in the
19 Fund before his or her employment with the Authority, or the
20 first day of service in the Fund after that employment,
21 whichever is higher; (ii) an employer contribution equal to
22 the amount determined under item (i) multiplied by the
23 employer multiple under Section 12-149; and (iii) interest on
24 items (i) and (ii) at the rate of 6% per year, compounded
25 annually, from the date of the service to the date of
26 payment. The applicant may pay the required contribution in
27 a lump sum at any time before the retirement annuity begins
28 or, subject to subsection (c), within 90 days after
29 withdrawal from service.
30 (b) A person wishing to establish service credit under
31 subsection (a) may reinstate creditable service terminated
32 upon receipt of a refund in accordance with the provisions of
33 Section 12-145.
34 (c) An eligible person may establish service credit
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1 under subsection (a) without returning to active service as
2 an employee under this Article, but the required
3 contributions must be received by the Fund before the person
4 begins to receive a retirement annuity under this Article.
5 (40 ILCS 5/12-127.7 new)
6 Sec. 12-127.7. Transfer to Metropolitan Pier and
7 Exposition Authority pension plan.
8 (a) Until January 1, 2002, any member of the management
9 committee of the Metropolitan Pier and Exposition Authority,
10 as designated by the chief executive officer of the
11 Authority, regardless of whether the member is in service
12 under this Article on or after the effective date of this
13 Section, may apply to the Board for transfer of all of his or
14 her creditable service accumulated under this Fund to the
15 pension plan established for employees and officers of the
16 Metropolitan Pier and Exposition Authority. The creditable
17 service shall be transferred in accordance with the terms of
18 that plan and shall be accompanied by a payment from this
19 Fund to that pension plan, consisting of:
20 (1) the amounts accumulated to the credit of the
21 applicant for the service to be transferred, including
22 interest, on the books of the Fund on the date of
23 transfer, but excluding any additional or optional
24 credits, which shall be refunded to the applicant; plus
25 (2) employer contribution credits computed and
26 credited under this Article, including interest, on the
27 books of the Fund on the date the applicant terminated
28 service under the Fund.
29 Participation in this Fund as to the credits transferred
30 under this Section terminates on the date of transfer.
31 (b) For the purpose of transferring credit under this
32 Section, a person may reinstate credits and creditable
33 service terminated upon receipt of a refund, by paying to the
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1 Fund, before January 1, 2002, the amount of the refund plus
2 regular interest from the date of the refund to the date of
3 repayment.
4 (40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
5 Sec. 14-103.05. Employee.
6 (a) Any person employed by a Department who receives
7 salary for personal services rendered to the Department on a
8 warrant issued pursuant to a payroll voucher certified by a
9 Department and drawn by the State Comptroller upon the State
10 Treasurer, including an elected official described in
11 subparagraph (d) of Section 14-104, shall become an employee
12 for purpose of membership in the Retirement System on the
13 first day of such employment.
14 A person entering service on or after January 1, 1972 and
15 prior to January 1, 1984 shall become a member as a condition
16 of employment and shall begin making contributions as of the
17 first day of employment.
18 A person entering service on or after January 1, 1984
19 shall, upon completion of 6 months of continuous service
20 which is not interrupted by a break of more than 2 months,
21 become a member as a condition of employment. Contributions
22 shall begin the first of the month after completion of the
23 qualifying period.
24 The qualifying period of 6 months of service is not
25 applicable to: (1) a person who has been granted credit for
26 service in a position covered by the State Universities
27 Retirement System, the Teachers' Retirement System of the
28 State of Illinois, the General Assembly Retirement System, or
29 the Judges Retirement System of Illinois unless that service
30 has been forfeited under the laws of those systems; (2) a
31 person entering service on or after July 1, 1991 in a
32 noncovered position; or (3) a person to whom Section
33 14-108.2a or 14-108.2b applies.
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1 (b) The term "employee" does not include the following:
2 (1) members of the State Legislature, and persons
3 electing to become members of the General Assembly
4 Retirement System pursuant to Section 2-105;
5 (2) incumbents of offices normally filled by vote
6 of the people;
7 (3) except as otherwise provided in this Section,
8 any person appointed by the Governor with the advice and
9 consent of the Senate unless that person elects to
10 participate in this system;
11 (4) except as provided in Section 14-108.2 or
12 14-108.2c, any person who is covered or eligible to be
13 covered by the Teachers' Retirement System of the State
14 of Illinois, the State Universities Retirement System, or
15 the Judges Retirement System of Illinois;
16 (5) an employee of a municipality or any other
17 political subdivision of the State;
18 (6) any person who becomes an employee after June
19 30, 1979 as a public service employment program
20 participant under the Federal Comprehensive Employment
21 and Training Act and whose wages or fringe benefits are
22 paid in whole or in part by funds provided under such
23 Act;
24 (7) enrollees of the Illinois Young Adult
25 Conservation Corps program, administered by the
26 Department of Natural Resources, authorized grantee
27 pursuant to Title VIII of the "Comprehensive Employment
28 and Training Act of 1973", 29 USC 993, as now or
29 hereafter amended;
30 (8) enrollees and temporary staff of programs
31 administered by the Department of Natural Resources under
32 the Youth Conservation Corps Act of 1970;
33 (9) any person who is a member of any professional
34 licensing or disciplinary board created under an Act
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1 administered by the Department of Professional Regulation
2 or a successor agency or created or re-created after the
3 effective date of this amendatory Act of 1997, and who
4 receives per diem compensation rather than a salary,
5 notwithstanding that such per diem compensation is paid
6 by warrant issued pursuant to a payroll voucher; such
7 persons have never been included in the membership of
8 this System, and this amendatory Act of 1987 (P.A.
9 84-1472) is not intended to effect any change in the
10 status of such persons;
11 (10) any person who is a member of the Illinois
12 Health Care Cost Containment Council, and receives per
13 diem compensation rather than a salary, notwithstanding
14 that such per diem compensation is paid by warrant issued
15 pursuant to a payroll voucher; such persons have never
16 been included in the membership of this System, and this
17 amendatory Act of 1987 is not intended to effect any
18 change in the status of such persons; or
19 (11) any person who is a member of the Oil and Gas
20 Board created by Section 1.2 of the Illinois Oil and Gas
21 Act, and receives per diem compensation rather than a
22 salary, notwithstanding that such per diem compensation
23 is paid by warrant issued pursuant to a payroll voucher.
24 (c) An individual who is employed on a full-time basis
25 as an officer or employee of a statewide labor organization
26 that represents members of this System may participate in the
27 System and shall be deemed an employee, provided that (1) the
28 individual has previously earned creditable service under
29 this Article, (2) the individual files with the System an
30 irrevocable election to become a participant, and (3) the
31 individual does not receive credit for that employment under
32 any other public or private pension plan or retirement system
33 (other than social security). An employee under this
34 subsection (c) is responsible for paying to the System both
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1 (i) employee contributions based on compensation as defined
2 in this subsection and (ii) employer contributions based on
3 that compensation and the percentage of payroll certified by
4 the board; all or any part of these contributions may be paid
5 on the employee's behalf or picked up for tax purposes (if
6 authorized under federal law) by the labor organization.
7 While participating in the System under this subsection
8 (c), the participant's rate of compensation, for all purposes
9 of this Article and the Retirement Systems Reciprocal Act,
10 shall be deemed to be the rate of compensation that the
11 participant would have received if he or she had continued in
12 the position that he or she held on the last day as an
13 employee in this System prior to beginning participation
14 under this subsection (c), including all scheduled
15 satisfactory performance increases and other salary increases
16 applicable from time to time to persons in that position (or,
17 if that position is eliminated, applicable to persons in
18 similar positions under the same pay plan or its successor).
19 The rate of compensation for a participant under this
20 subsection (c) shall be determined by the Board, in its sole
21 discretion.
22 A person who is an employee as defined in this subsection
23 may establish service credit for similar employment prior to
24 becoming an employee under this subsection by paying to the
25 System for that employment the contributions specified in
26 this subsection, plus interest at the effective rate from the
27 date of service to the date of payment. However, credit
28 shall not be granted under this subsection for any such prior
29 employment for which the applicant received credit under any
30 other public or private pension plan or retirement system
31 (other than social security).
32 (Source: P.A. 89-246; eff. 8-4-95; 89-445, eff. 2-7-96;
33 90-448, eff. 8-16-97.)
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1 (40 ILCS 5/14-103.12) (from Ch. 108 1/2, par. 14-103.12)
2 Sec. 14-103.12. Final average compensation.
3 (a) For retirement and survivor annuities, "final
4 average compensation" means the monthly compensation obtained
5 by dividing the total compensation of an employee during the
6 period of: (1) the 48 consecutive months of service within
7 the last 120 months of service in which the total
8 compensation was the highest, or (2) the total period of
9 service, if less than 48 months, by the number of months of
10 service in such period; provided that for purposes of a
11 retirement annuity the average compensation for the last 12
12 months of the 48-month period shall not exceed the final
13 average compensation by more than 25%.
14 (b) For death and disability benefits, in the case of a
15 full-time employee, "final average compensation" means the
16 greater of (1) the rate of compensation of the employee at
17 the date of death or disability multiplied by 1 in the case
18 of a salaried employee, by 174 in the case of an hourly
19 employee, and by 22 in the case of a per diem employee, or
20 (2) for benefits commencing on or after January 1, 1991,
21 final average compensation as determined under subsection
22 (a).
23 For purposes of this paragraph, full or part-time status
24 shall be certified by the employing agency. Final rate of
25 compensation for a part-time employee shall be the total
26 compensation earned during the last full calendar month prior
27 to the date of death or disability.
28 (c) Notwithstanding the provisions of subsection (a),
29 for the purpose of calculating retirement and survivor
30 annuities of persons with at least 20 years of eligible
31 creditable service as defined in Section 14-110, "final
32 average compensation" means (1) the monthly rate of
33 compensation received by the person on the last day of
34 eligible creditable service (but not to exceed 115% of the
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1 average monthly compensation received by the person for the
2 last 24 months of service, unless the person was in service
3 as a State policeman before the effective date of this
4 amendatory Act of 1997, and not to include any increase in
5 compensation received during the 90 days following any
6 general election at which a governor is elected, unless the
7 increase is specifically provided for by statute or
8 collective bargaining agreement or the person was a member of
9 the System earning eligible creditable service on the day
10 preceding the effective date of this amendatory Act of the
11 92nd General Assembly), or (2) the average monthly
12 compensation received by the person for the last 48 months of
13 service prior to retirement, whichever is greater.
14 (d) Notwithstanding the provisions of subsection (a),
15 for a person who was receiving, on the date of retirement or
16 death, a disability benefit calculated under subdivision
17 (b)(2) of this Section, the final average compensation used
18 to calculate the disability benefit may be used for purposes
19 of calculating the retirement and survivor annuities.
20 (e) In computing the final average compensation, periods
21 of military leave shall not be considered.
22 A person appointed by the Governor to serve on a
23 part-time basis as a paid member of a State board or
24 commission may elect to have all or part of that service
25 excluded from the computation of final average compensation
26 under this Section.
27 (f) The changes to this Section made by this amendatory
28 Act of 1997 (redefining final average compensation for
29 members under the alternative formula) apply to members who
30 retire on or after January 1, 1998, without regard to whether
31 employment terminated before the effective date of this
32 amendatory Act of 1997.
33 (Source: P.A. 90-65, eff. 7-7-97.)
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1 (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
2 Sec. 14-104. Service for which contributions are
3 permitted. Creditable service shall be granted under this
4 Section for the types of service specified, upon application
5 in writing and payment of the contributions provided for in
6 this Section covering shall cover the period of service to be
7 granted. Except as otherwise provided in this Section, the
8 contributions shall be based upon the applicant's employee's
9 compensation and contribution rate in effect on the date he
10 or she last became a member of the System; provided that for
11 all employment prior to January 1, 1969, the contribution
12 rate shall be that in effect for a noncovered employee on the
13 date he last became a member of the System. Except as
14 otherwise provided in this Section, contributions permitted
15 under this Section shall include regular interest from the
16 date the applicant an employee last became a member of the
17 System to the date of payment.
18 These contributions must be paid in full before
19 retirement either in a lump sum or in installment payments in
20 accordance with such rules as may be adopted by the board.
21 (a) Any member may make contributions as required in
22 this Section for any period of service, subsequent to the
23 date of establishment, but prior to the date of membership.
24 (b) Any member employee who had been previously excluded
25 from membership because of age at entry and subsequently
26 became eligible may elect to make contributions as required
27 in this Section for the period of service during which the
28 member he was ineligible.
29 (c) An employee of the Department of Insurance who,
30 after January 1, 1944 but prior to becoming eligible for
31 membership, received salary from funds of insurance companies
32 in the process of rehabilitation, liquidation, conservation
33 or dissolution, may elect to make contributions as required
34 in this Section for such service.
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1 (d) Any member employee who rendered service in a State
2 office to which he or she was elected, or rendered service in
3 the elective office of Clerk of the Appellate Court prior to
4 the date he or she became a member, may make contributions
5 for such service as required in this Section. Any member who
6 served by appointment of the Governor under the Civil
7 Administrative Code of Illinois and did not participate in
8 this System may make contributions as required in this
9 Section for such service.
10 (e) Any person employed by the United States government
11 or any instrumentality or agency thereof from January 1, 1942
12 through November 15, 1946 as the result of a transfer from
13 State service by executive order of the President of the
14 United States shall be entitled to prior service credit
15 covering the period from January 1, 1942 through December 31,
16 1943 as provided for in this Article and to membership
17 service credit for the period from January 1, 1944 through
18 November 15, 1946 by making the contributions required in
19 this Section. A person so employed on January 1, 1944 but
20 whose employment began after January 1, 1942 may qualify for
21 prior service and membership service credit under the same
22 conditions.
23 (f) An employee of the Department of Labor of the State
24 of Illinois who performed services for and under the
25 supervision of that Department prior to January 1, 1944 but
26 who was compensated for those services directly by federal
27 funds and not by a warrant of the Auditor of Public Accounts
28 paid by the State Treasurer may establish credit for such
29 employment by making the contributions required in this
30 Section. An employee of the Department of Agriculture of the
31 State of Illinois, who performed services for and under the
32 supervision of that Department prior to June 1, 1963, but was
33 compensated for those services directly by federal funds and
34 not paid by a warrant of the Auditor of Public Accounts paid
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1 by the State Treasurer, and who did not contribute to any
2 other public employee retirement system for such service, may
3 establish credit for such employment by making the
4 contributions required in this Section.
5 (g) Any employee who executed a waiver of membership
6 within 60 days prior to January 1, 1944 may, at any time
7 while in the service of a department, file with the board a
8 rescission of such waiver. Upon making the contributions
9 required by this Section, the member shall be granted the
10 creditable service that would have been received if the
11 waiver had not been executed.
12 (h) Until May 1, 1990, an employee who was employed on a
13 full-time basis by a regional planning commission for at
14 least 5 continuous years may establish creditable service for
15 such employment by making the contributions required under
16 this Section, provided that any credits earned by the
17 employee in the commission's retirement plan have been
18 terminated.
19 (i) Any person who rendered full time contractual
20 services to the General Assembly as a member of a legislative
21 staff may establish service credit for up to 8 years of such
22 services by making the contributions required under this
23 Section, provided that application therefor is made not later
24 than July 1, 1991.
25 (j) By paying the contributions otherwise required under
26 this Section, plus an amount determined by the Board to be
27 equal to the employer's normal cost of the benefit plus
28 interest, but with all of the interest calculated from the
29 date he or she last became a member of the System or November
30 19, 1991, whichever is later, to the date of payment, a
31 member an employee may establish service credit for a period
32 of up to 2 years spent in active military service for which
33 he or she does not qualify for credit under Section 14-105,
34 provided that (1) the member he was not dishonorably
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1 discharged from such military service, and (2) the amount of
2 service credit established by the a member under this
3 subsection (j), when added to the amount of military service
4 credit granted to the member under subsection (b) of Section
5 14-105, shall not exceed 5 years. The change in the manner
6 of calculating interest under this subsection (j) made by
7 this amendatory Act of the 92nd General Assembly applies to
8 credit purchased by a member on or after its effective date
9 and does not entitle any person to a refund of contributions
10 or interest already paid.
11 (k) A member An employee who was employed on a full-time
12 basis by the Illinois State's Attorneys Association Statewide
13 Appellate Assistance Service LEAA-ILEC grant project prior to
14 the time that project became the State's Attorneys Appellate
15 Service Commission, now the Office of the State's Attorneys
16 Appellate Prosecutor, an agency of State government, may
17 establish creditable service for not more than 60 months
18 service for such employment by making contributions required
19 under this Section.
20 (l) By paying the contributions otherwise required under
21 this Section, plus an amount determined by the Board to be
22 equal to the employer's normal cost of the benefit plus
23 interest, a member may establish service credit for periods
24 of less than one year spent on authorized leave of absence
25 from service, provided that (1) the period of leave began on
26 or after January 1, 1982 and (2) any credit established by
27 the member for the period of leave in any other public
28 employee retirement system has been terminated. A member may
29 establish service credit under this subsection for more than
30 one period of authorized leave, and in that case the total
31 period of service credit established by the member under this
32 subsection may exceed one year. In determining the
33 contributions required for establishing service credit under
34 this subsection, the interest shall be calculated from the
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1 beginning of the leave of absence to the date of payment.
2 (m) Any person who rendered contractual services to a
3 member of the General Assembly as a worker in the member's
4 district office may establish creditable service for up to 3
5 years of those contractual services by making the
6 contributions required under this Section. The System shall
7 determine a full-time salary equivalent for the purpose of
8 calculating the required contribution. To establish credit
9 under this subsection, the applicant must apply to the System
10 by March 1, 1998.
11 (n) Any person who rendered contractual services to a
12 member of the General Assembly as a worker providing
13 constituent services to persons in the member's district may
14 establish creditable service for up to 8 years of those
15 contractual services by making the contributions required
16 under this Section. The System shall determine a full-time
17 salary equivalent for the purpose of calculating the required
18 contribution. To establish credit under this subsection, the
19 applicant must apply to the System by March 1, 1998.
20 (o) A member who participated in the Illinois
21 Legislative Staff Internship Program, the Graduate Public
22 Service Internship Program, or the Secretary of State's Ira
23 S. Loeb Fellowship Program (formerly known as the One-Year
24 Fellowship Program) may establish creditable service for up
25 to one year of that participation by making the contribution
26 required under this Section. The System shall determine a
27 full-time salary equivalent for the purpose of calculating
28 the required contribution. Credit may not be established
29 under this subsection for any period for which service credit
30 is established under any other provision of this Code.
31 (p) An employee of the State Treasurer who performed
32 services for and under the supervision of the State Treasurer
33 prior to April 1, 1990 but who was compensated for those
34 services directly from the administrative fees of the
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1 Illinois Public Treasurers' Investment Pool (IPTIP) and not
2 by a warrant of the State Comptroller paid by the State
3 Treasurer may establish credit for up to 24 months of those
4 services by making the contributions required under this
5 Section.
6 (Source: P.A. 90-32, eff. 6-27-97; 90-448, eff. 8-16-97;
7 90-511, eff. 8-22-97; 90-655, eff. 7-30-98; 90-766, eff.
8 8-14-98.)
9 (40 ILCS 5/14-104.6) (from Ch. 108 1/2, par. 14-104.6)
10 Sec. 14-104.6. Service transferred from Article 16.
11 Service also includes the following:
12 (a) Any period as a teacher employed by the Department
13 of Corrections for which credit was established under Article
14 16 of this Code, subject to the following conditions: (1) the
15 credits accrued for such employment under Article 16 have
16 been transferred to this System; and (2) the participant has
17 contributed to this System an amount equal to (A) employee
18 contributions at the rate in effect for noncoordinated
19 eligible creditable service at the date of membership in this
20 System, based upon the salary in effect during such period of
21 service, plus (B) the employer's share of the normal cost
22 under this System for each year that credit is being
23 established, based on the salary in effect during such period
24 of service, plus (C) regular interest, compounded annually,
25 from July 1, 1987 to the date of payment, less (D) the amount
26 transferred on behalf of the participant under Section
27 16-131.6.
28 (b) Any period as a security employee of the Department
29 of Human Services, as defined in Section 14-110, for which
30 credit was established under Article 16 of this Code, subject
31 to the following conditions: (1) the credits accrued for that
32 employment under Article 16 have been transferred to this
33 System; and (2) the participant has contributed to this
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1 System an amount equal to (A) employee contributions at the
2 rate in effect for noncoordinated eligible creditable service
3 at the date of membership in this System, based upon the
4 salary in effect during the period of service, plus (B) the
5 employer's share of the normal cost under this System for
6 each year that credit is being established, based on the
7 salary in effect during the period of service, plus (C)
8 regular interest, compounded annually, from July 1, 2002 to
9 the date of payment, less (D) the amount transferred on
10 behalf of the participant under Section 16-131.6.
11 (c) Credit established under this Section shall be
12 deemed noncoordinated eligible creditable service as defined
13 in Section 14-110.
14 (Source: P.A. 86-1488; 87-794.)
15 (40 ILCS 5/14-104.12 new)
16 Sec. 14-104.12. Credit for employment with the Illinois
17 Sports Facilities Authority Board.
18 (a) A person who has service credit in the System and
19 has not yet begun to receive a retirement annuity may
20 establish service credit in this System for periods before
21 the effective date of this Section during which he or she was
22 employed by the Illinois Sports Facilities Authority Board or
23 its predecessor entities, provided that the person does not
24 have credit for those periods in any other public employee
25 pension fund or retirement system and has terminated
26 participation with respect to those periods of employment in
27 any pension or retirement program established by the
28 Authority or its predecessor entities. A person need not
29 establish credit for all such periods and may not establish
30 more than 10 years of service credit under this subsection.
31 The credit established shall be deemed to relate to the
32 earliest period for which the credit may be established.
33 In order to establish this credit, the person must apply
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1 in writing to the Board and pay to the System an amount equal
2 to the sum of: (i) employee contributions based upon the
3 period of credit to be established, the employee contribution
4 rate in effect at the time of application, and the
5 applicant's salary rate on the last day of service in the
6 System before his or her employment with the Authority, or
7 the first day of service in the System after that employment,
8 whichever is higher; (ii) the employer's normal cost of the
9 benefits accrued for the credit being established, as
10 determined by the Board; and (iii) regular interest on items
11 (i) and (ii) from the date of the service for which credit is
12 being established to the date of payment. The applicant must
13 pay the required contribution to the System before the
14 retirement annuity begins.
15 (b) A person wishing to establish service credit under
16 subsection (a) may reinstate creditable service terminated
17 upon receipt of a refund in accordance with the provisions of
18 Section 14-130(b).
19 (c) An eligible person may establish service credit
20 under subsection (a) without returning to active service as
21 an employee under this Article, but the required
22 contributions must be received by the System before the
23 person begins to receive a retirement annuity under this
24 Article.
25 (40 ILCS 5/14-104.13 new)
26 Sec. 14-104.13. Credit for employment with the
27 Metropolitan Pier and Exposition Authority.
28 (a) A person who has service credit in the System and
29 has not yet begun to receive a retirement annuity may
30 establish service credit in this System for periods before
31 the effective date of this Section during which he or she was
32 employed by the Metropolitan Pier and Exposition Authority or
33 its predecessor entities, provided that the person does not
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1 have credit for those periods in any other public employee
2 pension fund or retirement system and has terminated
3 participation with respect to those periods of employment in
4 any pension or retirement program established by the
5 Authority or its predecessor entities. A person need not
6 establish credit for all such periods and may not establish
7 more than 10 years of service credit under this subsection.
8 The credit established shall be deemed to relate to the
9 earliest period for which the credit may be established.
10 In order to establish this credit, the person must apply
11 in writing to the Board and pay to the System an amount equal
12 to the sum of: (i) employee contributions based upon the
13 period of credit to be established, the employee contribution
14 rate in effect at the time of application, and the
15 applicant's salary rate on the last day of service in the
16 System before his or her employment with the Authority, or
17 the first day of service in the System after that employment,
18 whichever is higher; (ii) the employer's normal cost of the
19 benefits accrued for the credit being established, as
20 determined by the Board; and (iii) regular interest on items
21 (i) and (ii) from the date of the service for which credit is
22 being established to the date of payment. The applicant must
23 pay the required contribution to the System before the
24 retirement annuity begins.
25 (b) A person wishing to establish service credit under
26 subsection (a) may reinstate creditable service terminated
27 upon receipt of a refund in accordance with the provisions of
28 Section 14-130(b).
29 (c) An eligible person may establish service credit
30 under subsection (a) without returning to active service as
31 an employee under this Article, but the required
32 contributions must be received by the System before the
33 person begins to receive a retirement annuity under this
34 Article.
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1 (40 ILCS 5/14-105.7)
2 Sec. 14-105.7. Transfer to Article 9 fund.
3 (a) Until July 1, 2002 1998, any active or inactive
4 member of the System who has established creditable service
5 under paragraph (i) of Section 14-104 (relating to
6 contractual service to the General Assembly) and is an active
7 or former contributor to the pension fund established under
8 Article 9 of this Code may apply to the Board for transfer of
9 all of his or her creditable service accumulated under this
10 System to the Article 9 fund. The creditable service shall
11 be transferred forthwith. Payment by this System to the
12 Article 9 fund shall be made at the same time and shall
13 consist of:
14 (1) the amounts accumulated to the credit of the
15 applicant for that service, including regular interest,
16 on the books of the System on the date of transfer; plus
17 (2) employer contributions in an amount equal to
18 the amount determined under item (1).
19 Participation in this System as to the credits transferred
20 under this Section terminates on the date of transfer.
21 (b) Any person transferring credit under this Section
22 may reinstate credits and creditable service terminated upon
23 receipt of a refund, by paying to the System, before July 1,
24 2002 1998, the amount of the refund plus regular interest
25 from the date of refund to the date of payment.
26 (c) The changes to this Section and Section 9-121.15
27 made by this amendatory Act of the 92nd General Assembly
28 apply without regard to whether the person is in active
29 service, under this System or the Article 9 Fund, on or after
30 the effective date of this amendatory Act.
31 (Source: P.A. 90-511, eff. 8-22-97.)
32 (40 ILCS 5/14-105.8 new)
33 Sec. 14-105.8. Transfer to Metropolitan Pier and
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1 Exposition Authority pension plan.
2 (a) Until January 1, 2002, any member of the management
3 committee of the Metropolitan Pier and Exposition Authority,
4 as designated by the chief executive officer of the
5 Authority, regardless of whether the member is in service
6 under this Article on or after the effective date of this
7 Section, may apply to the Board for transfer of all of his or
8 her creditable service accumulated under this System to the
9 pension plan established for employees and officers of the
10 Metropolitan Pier and Exposition Authority. The creditable
11 service shall be transferred in accordance with the terms of
12 that plan and shall be accompanied by a payment from this
13 System to that pension plan, consisting of:
14 (1) the amounts accumulated to the credit of the
15 applicant for the service to be transferred, including
16 regular interest, on the books of the System on the date
17 of transfer; plus
18 (2) employer contributions in an amount equal to
19 the amount determined under item (1).
20 Participation in this System as to the credits transferred
21 under this Section terminates on the date of transfer.
22 (b) For the purpose of transferring credit under this
23 Section, a person may reinstate credits and creditable
24 service terminated upon receipt of a refund, by paying to the
25 System, before January 1, 2002, the amount of the refund plus
26 regular interest from the date of the refund to the date of
27 repayment.
28 (40 ILCS 5/14-106) (from Ch. 108 1/2, par. 14-106)
29 Sec. 14-106. Membership service credit.
30 (a) After January 1, 1944, all service of a member since
31 he last became a member with respect to which contributions
32 are made shall count as membership service; provided, that
33 for service on and after July 1, 1950, 12 months of service
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1 shall constitute a year of membership service, the completion
2 of 15 days or more of service during any month shall
3 constitute 1 month of membership service, 8 to 15 days shall
4 constitute 1/2 month of membership service and less than 8
5 days shall constitute 1/4 month of membership service. The
6 payroll record of each department shall constitute conclusive
7 evidence of the record of service rendered by a member.
8 (b) For a member who is employed and paid on an
9 academic-year basis rather than on a 12-month annual basis,
10 employment for a full academic year shall constitute a full
11 year of membership service, except that the member shall not
12 receive more than one year of membership service credit (plus
13 any additional service credit granted for unused sick leave)
14 for service during any 12-month period. This subsection (b)
15 applies to all such service for which the member has not
16 begun to receive a retirement annuity before January 1, 2001.
17 (c) A member shall be entitled to additional service
18 credit, under rules prescribed by the Board, for accumulated
19 unused sick leave credited to his account in the last
20 Department on the date of withdrawal from service or for any
21 period for which he would have been eligible to receive
22 benefits under a sick pay plan authorized by law, if he had
23 suffered a sickness or accident on the date of withdrawal
24 from service. It shall be the responsibility of the last
25 Department to certify to the Board the length of time salary
26 or benefits would have been paid to the member based upon the
27 accumulated unused sick leave or the applicable sick pay plan
28 if he had become entitled thereto because of sickness on the
29 date that his status as an employee terminated. This period
30 of service credit granted under this paragraph shall not be
31 considered in determining the date the retirement annuity is
32 to begin, or final average compensation.
33 (Source: P.A. 87-1265.)
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1 (40 ILCS 5/14-107) (from Ch. 108 1/2, par. 14-107)
2 Sec. 14-107. Retirement annuity - service and age -
3 conditions.
4 (a) A member is entitled to a retirement annuity after
5 having at least 8 years of creditable service.
6 A member who has at least 35 years of creditable service
7 may claim his or her retirement annuity at any age. A member
8 having at least 8 years of creditable service but less than
9 35 may claim his or her retirement annuity upon or after
10 attainment of age 60 or, beginning January 1, 2001, any
11 lesser age which, when added to the number of years of his or
12 her creditable service, equals at least 85. A member upon or
13 after attainment of age 55 having at least 25 years of
14 creditable service (30 years if retirement is before January
15 1, 2001) may elect to receive the lower retirement annuity
16 provided in paragraph (c) of Section 14-108 of this Code.
17 For purposes of the rule of 85, portions of years shall be
18 counted in whole months.
19 (b) A member with at least 34 but less than 35 years of
20 creditable service who has reached the 75% maximum imposed
21 under subsection (d) of Section 14-108 shall be deemed to
22 have 35 years of creditable service for the purpose of (1)
23 qualifying for retirement at any age under subsection (a) of
24 this Section, (2) avoiding the early retirement reduction
25 under subsection (c) of Section 14-108, and (3) qualifying
26 for the automatic annual increase under subsection (a) of
27 Section 14-114.
28 (c) The retirement annuity allowance shall begin with
29 the first full calendar month specified in the member's
30 application therefor, the first day of which shall not be
31 before the date of withdrawal as approved by the board.
32 Regardless of the date of withdrawal, the retirement annuity
33 allowance need not begin within one year of application
34 therefor.
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1 (Source: P.A. 91-927, eff. 12-14-00.)
2 (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
3 Sec. 14-108. Amount of retirement annuity. A member who
4 has contributed to the System for at least 12 months shall be
5 entitled to a prior service annuity for each year of
6 certified prior service credited to him, except that a member
7 shall receive 1/3 of the prior service annuity for each year
8 of service for which contributions have been made and all of
9 such annuity shall be payable after the member has made
10 contributions for a period of 3 years. Proportionate amounts
11 shall be payable for service of less than a full year after
12 completion of at least 12 months.
13 The total period of service to be considered in
14 establishing the measure of prior service annuity shall
15 include service credited in the Teachers' Retirement System
16 of the State of Illinois and the State Universities
17 Retirement System for which contributions have been made by
18 the member to such systems; provided that at least 1 year of
19 the total period of 3 years prescribed for the allowance of a
20 full measure of prior service annuity shall consist of
21 membership service in this system for which credit has been
22 granted.
23 (a) In the case of a member who retires on or after
24 January 1, 1998 and is a noncovered employee, the retirement
25 annuity for membership service and prior service shall be
26 2.2% of final average compensation for each year of service.
27 Any service credit established as a covered employee shall be
28 computed as stated in paragraph (b).
29 (b) In the case of a member who retires on or after
30 January 1, 1998 and is a covered employee, the retirement
31 annuity for membership service and prior service shall be
32 computed as stated in paragraph (a) for all service credit
33 established as a noncovered employee; for service credit
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1 established as a covered employee it shall be 1.67% of final
2 average compensation for each year of service.
3 (c) For a member retiring after attaining age 55 but
4 before age 60 with at least 30 but less than 35 years of
5 creditable service if retirement is before January 1, 2001,
6 or with at least 25 but less than 30 years of creditable
7 service if retirement is on or after January 1, 2001, the
8 retirement annuity shall be reduced by 1/2 of 1% for each
9 month that the member's age is under age 60 at the time of
10 retirement.
11 (d) A retirement annuity shall not exceed 75% of final
12 average compensation, subject to such extension as may result
13 from the application of Section 14-114 or Section 14-115.
14 (e) The retirement annuity payable to any covered
15 employee who is a member of the System and in service on
16 January 1, 1969, or in service thereafter in 1969 as a result
17 of legislation enacted by the Illinois General Assembly
18 transferring the member to State employment from county
19 employment in a county Department of Public Aid in counties
20 of 3,000,000 or more population, under a plan of coordination
21 with the Old Age, Survivors and Disability provisions
22 thereof, if not fully insured for Old Age Insurance payments
23 under the Federal Old Age, Survivors and Disability Insurance
24 provisions at the date of acceptance of a retirement annuity,
25 shall not be less than the amount for which the member would
26 have been eligible if coordination were not applicable.
27 (f) The retirement annuity payable to any covered
28 employee who is a member of the System and in service on
29 January 1, 1969, or in service thereafter in 1969 as a result
30 of the legislation designated in the immediately preceding
31 paragraph, if fully insured for Old Age Insurance payments
32 under the Federal Social Security Act at the date of
33 acceptance of a retirement annuity, shall not be less than an
34 amount which when added to the Primary Insurance Benefit
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1 payable to the member upon attainment of age 65 under such
2 Federal Act, will equal the annuity which would otherwise be
3 payable if the coordinated plan of coverage were not
4 applicable.
5 (g) In the case of a member who is a noncovered
6 employee, the retirement annuity for membership service as a
7 security employee of the Department of Corrections or
8 security employee of the Department of Human Services shall
9 be: if retirement occurs on or after January 1, 2001, 3% of
10 final average compensation for each year of creditable
11 service; or if retirement occurs before January 1, 2001, 1.9%
12 of final average compensation for each of the first 10 years
13 of service, 2.1% for each of the next 10 years of service,
14 2.25% for each year of service in excess of 20 but not
15 exceeding 30, and 2.5% for each year in excess of 30; except
16 that the annuity may be calculated under subsection (a)
17 rather than this subsection (g) if the resulting annuity is
18 greater.
19 (h) In the case of a member who is a covered employee,
20 the retirement annuity for membership service as a security
21 employee of the Department of Corrections or security
22 employee of the Department of Human Services shall be: if
23 retirement occurs on or after January 1, 2001, 2.5% of final
24 average compensation for each year of creditable service; if
25 retirement occurs before January 1, 2001, 1.67% of final
26 average compensation for each of the first 10 years of
27 service, 1.90% for each of the next 10 years of service,
28 2.10% for each year of service in excess of 20 but not
29 exceeding 30, and 2.30% for each year in excess of 30.
30 (i) For the purposes of this Section and Section 14-133
31 of this Act, the term "security employee of the Department of
32 Corrections" and the term "security employee of the
33 Department of Human Services" shall have the meanings
34 ascribed to them in subsection (c) of Section 14-110.
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1 (j) The retirement annuity computed pursuant to
2 paragraphs (g) or (h) shall be applicable only to those
3 security employees of the Department of Corrections and
4 security employees of the Department of Human Services who
5 have at least 20 years of membership service and who are not
6 eligible for the alternative retirement annuity provided
7 under Section 14-110. However, persons transferring to this
8 System under Section 14-108.2 or 14-108.2c who have service
9 credit under Article 16 of this Code may count such service
10 toward establishing their eligibility under the 20-year
11 service requirement of this subsection; but such service may
12 be used only for establishing such eligibility, and not for
13 the purpose of increasing or calculating any benefit.
14 (k) (Blank).
15 (l) The changes to this Section made by this amendatory
16 Act of 1997 (changing certain retirement annuity formulas
17 from a stepped rate to a flat rate) apply to members who
18 retire on or after January 1, 1998, without regard to whether
19 employment terminated before the effective date of this
20 amendatory Act of 1997. An annuity shall not be calculated
21 in steps by using the new flat rate for some steps and the
22 superseded stepped rate for other steps of the same type of
23 service.
24 (Source: P.A. 90-65, eff. 7-7-97; 90-448, eff. 8-16-97;
25 90-655, eff. 7-30-98; 91-927, eff. 12-14-00.)
26 (40 ILCS 5/14-108.2c new)
27 Sec. 14-108.2c. Transfer of membership from TRS. A
28 security employee of the Department of Human Services, as
29 defined in Section 14-110, who is a member of the Teachers'
30 Retirement System established under Article 16 of this Code
31 may elect to become a member of this System on either June 1,
32 2002 or July 1, 2002 by notifying the Board of the election
33 in writing on or before May 31, 2002.
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1 For persons electing to become covered employees,
2 participation in the Article 16 system shall terminate on
3 June 1, 2002, and membership in this System shall begin on
4 that date.
5 For persons electing to become noncovered employees,
6 participation in the Article 16 system shall terminate on
7 July 1, 2002, and membership in this System shall begin on
8 that date.
9 (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
10 Sec. 14-110. Alternative retirement annuity.
11 (a) Any member who has withdrawn from service with not
12 less than 20 years of eligible creditable service and has
13 attained age 55, and any member who has withdrawn from
14 service with not less than 25 years of eligible creditable
15 service and has attained age 50, regardless of whether the
16 attainment of either of the specified ages occurs while the
17 member is still in service, shall be entitled to receive at
18 the option of the member, in lieu of the regular or minimum
19 retirement annuity, a retirement annuity computed as
20 follows:
21 (i) for periods of service as a noncovered
22 employee: if retirement occurs on or after January 1,
23 2001, 3% of final average compensation for each year of
24 creditable service; if retirement occurs before January
25 1, 2001, 2 1/4% of final average compensation for each of
26 the first 10 years of creditable service, 2 1/2% for each
27 year above 10 years to and including 20 years of
28 creditable service, and 2 3/4% for each year of
29 creditable service above 20 years; and
30 (ii) for periods of eligible creditable service as
31 a covered employee: if retirement occurs on or after
32 January 1, 2001, 2.5% of final average compensation for
33 each year of creditable service; if retirement occurs
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1 before January 1, 2001, 1.67% of final average
2 compensation for each of the first 10 years of such
3 service, 1.90% for each of the next 10 years of such
4 service, 2.10% for each year of such service in excess of
5 20 but not exceeding 30, and 2.30% for each year in
6 excess of 30.
7 Such annuity shall be subject to a maximum of 75% of
8 final average compensation if retirement occurs before
9 January 1, 2001 or to a maximum of 80% of final average
10 compensation if retirement occurs on or after January 1,
11 2001.
12 These rates shall not be applicable to any service
13 performed by a member as a covered employee which is not
14 eligible creditable service. Service as a covered employee
15 which is not eligible creditable service shall be subject to
16 the rates and provisions of Section 14-108.
17 (b) For the purpose of this Section, "eligible
18 creditable service" means creditable service resulting from
19 service in one or more of the following positions:
20 (1) State policeman;
21 (2) fire fighter in the fire protection service of
22 a department;
23 (3) air pilot;
24 (4) special agent;
25 (5) investigator for the Secretary of State;
26 (6) conservation police officer;
27 (7) investigator for the Department of Revenue;
28 (8) security employee of the Department of Human
29 Services;
30 (9) Central Management Services security police
31 officer;
32 (10) security employee of the Department of
33 Corrections;
34 (11) dangerous drugs investigator;
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1 (12) investigator for the Department of State
2 Police;
3 (13) investigator for the Office of the Attorney
4 General;
5 (14) controlled substance inspector;
6 (15) investigator for the Office of the State's
7 Attorneys Appellate Prosecutor;
8 (16) Commerce Commission police officer;
9 (17) arson investigator;
10 (18) State highway maintenance worker;
11 (19) CMS automotive mechanic.
12 A person employed in one of the positions specified in
13 this subsection is entitled to eligible creditable service
14 for service credit earned under this Article while undergoing
15 the basic police training course approved by the Illinois Law
16 Enforcement Training Standards Board, if completion of that
17 training is required of persons serving in that position.
18 For the purposes of this Code, service during the required
19 basic police training course shall be deemed performance of
20 the duties of the specified position, even though the person
21 is not a sworn peace officer at the time of the training.
22 (c) For the purposes of this Section:
23 (1) The term "state policeman" includes any title
24 or position in the Department of State Police that is
25 held by an individual employed under the State Police
26 Act.
27 (2) The term "fire fighter in the fire protection
28 service of a department" includes all officers in such
29 fire protection service including fire chiefs and
30 assistant fire chiefs.
31 (3) The term "air pilot" includes any employee
32 whose official job description on file in the Department
33 of Central Management Services, or in the department by
34 which he is employed if that department is not covered by
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1 the Personnel Code, states that his principal duty is the
2 operation of aircraft, and who possesses a pilot's
3 license; however, the change in this definition made by
4 this amendatory Act of 1983 shall not operate to exclude
5 any noncovered employee who was an "air pilot" for the
6 purposes of this Section on January 1, 1984.
7 (4) The term "special agent" means any person who
8 by reason of employment by the Division of Narcotic
9 Control, the Bureau of Investigation or, after July 1,
10 1977, the Division of Criminal Investigation, the
11 Division of Internal Investigation, the Division of
12 Operations, or any other Division or organizational
13 entity in the Department of State Police is vested by law
14 with duties to maintain public order, investigate
15 violations of the criminal law of this State, enforce the
16 laws of this State, make arrests and recover property.
17 The term "special agent" includes any title or position
18 in the Department of State Police that is held by an
19 individual employed under the State Police Act.
20 (5) The term "investigator for the Secretary of
21 State" means any person employed by the Office of the
22 Secretary of State and vested with such investigative
23 duties as render him ineligible for coverage under the
24 Social Security Act by reason of Sections 218(d)(5)(A),
25 218(d)(8)(D) and 218(l)(1) of that Act.
26 A person who became employed as an investigator for
27 the Secretary of State between January 1, 1967 and
28 December 31, 1975, and who has served as such until
29 attainment of age 60, either continuously or with a
30 single break in service of not more than 3 years
31 duration, which break terminated before January 1, 1976,
32 shall be entitled to have his retirement annuity
33 calculated in accordance with subsection (a),
34 notwithstanding that he has less than 20 years of credit
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1 for such service.
2 (6) The term "Conservation Police Officer" means
3 any person employed by the Division of Law Enforcement of
4 the Department of Natural Resources and vested with such
5 law enforcement duties as render him ineligible for
6 coverage under the Social Security Act by reason of
7 Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of
8 that Act. The term "Conservation Police Officer"
9 includes the positions of Chief Conservation Police
10 Administrator and Assistant Conservation Police
11 Administrator.
12 (7) The term "investigator for the Department of
13 Revenue" means any person employed by the Department of
14 Revenue and vested with such investigative duties as
15 render him ineligible for coverage under the Social
16 Security Act by reason of Sections 218(d)(5)(A),
17 218(d)(8)(D) and 218(l)(1) of that Act.
18 (8) The term "security employee of the Department
19 of Human Services" means any person employed by the
20 Department of Human Services who (i) is employed at the
21 Chester Mental Health Center and has daily contact with
22 the residents thereof, (ii) is employed within a security
23 unit at a facility operated by the Department and has
24 daily contact with the residents of the security unit,
25 (iii) is employed at a facility operated by the
26 Department that includes a security unit and is regularly
27 scheduled to work at least 50% of his or her working
28 hours within that security unit, or (iv) who is a mental
29 health police officer. "Mental health police officer"
30 means any person employed by the Department of Human
31 Services in a position pertaining to the Department's
32 mental health and developmental disabilities functions
33 who is vested with such law enforcement duties as render
34 the person ineligible for coverage under the Social
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1 Security Act by reason of Sections 218(d)(5)(A),
2 218(d)(8)(D) and 218(l)(1) of that Act. "Security unit"
3 means that portion of a facility that is devoted to the
4 care, containment, and treatment of persons committed to
5 the Department of Human Services as sexually violent
6 persons, persons unfit to stand trial, or persons not
7 guilty by reason of insanity. With respect to past
8 employment, references to the Department of Human
9 Services include its predecessor, the Department of
10 Mental Health and Developmental Disabilities.
11 The changes made to this subdivision (c)(8) by this
12 amendatory Act of the 92nd General Assembly apply to
13 persons who retire on or after January 1, 2001,
14 notwithstanding Section 1-103.1.
15 (9) "Central Management Services security police
16 officer" means any person employed by the Department of
17 Central Management Services who is vested with such law
18 enforcement duties as render him ineligible for coverage
19 under the Social Security Act by reason of Sections
20 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
21 (10) The term "security employee of the Department
22 of Corrections" means any employee of the Department of
23 Corrections or the former Department of Personnel, and
24 any member or employee of the Prisoner Review Board, who
25 has daily contact with inmates by working within a
26 correctional facility or who is a parole officer or an
27 employee who has direct contact with committed persons in
28 the performance of his or her job duties.
29 (11) The term "dangerous drugs investigator" means
30 any person who is employed as such by the Department of
31 Human Services.
32 (12) The term "investigator for the Department of
33 State Police" means a person employed by the Department
34 of State Police who is vested under Section 4 of the
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1 Narcotic Control Division Abolition Act with such law
2 enforcement powers as render him ineligible for coverage
3 under the Social Security Act by reason of Sections
4 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
5 (13) "Investigator for the Office of the Attorney
6 General" means any person who is employed as such by the
7 Office of the Attorney General and is vested with such
8 investigative duties as render him ineligible for
9 coverage under the Social Security Act by reason of
10 Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that
11 Act. For the period before January 1, 1989, the term
12 includes all persons who were employed as investigators
13 by the Office of the Attorney General, without regard to
14 social security status. For the period January 1, 1972
15 through August 15, 1975, the term also includes a person
16 who was employed by the Illinois Department of
17 Transportation while engaged in an investigation that was
18 conducted for and supervised by the Office of the
19 Attorney General, without regard to social security
20 status.
21 (14) "Controlled substance inspector" means any
22 person who is employed as such by the Department of
23 Professional Regulation and is vested with such law
24 enforcement duties as render him ineligible for coverage
25 under the Social Security Act by reason of Sections
26 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
27 The term "controlled substance inspector" includes the
28 Program Executive of Enforcement and the Assistant
29 Program Executive of Enforcement.
30 (15) The term "investigator for the Office of the
31 State's Attorneys Appellate Prosecutor" means a person
32 employed in that capacity on a full time basis under the
33 authority of Section 7.06 of the State's Attorneys
34 Appellate Prosecutor's Act.
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1 (16) "Commerce Commission police officer" means any
2 person employed by the Illinois Commerce Commission who
3 is vested with such law enforcement duties as render him
4 ineligible for coverage under the Social Security Act by
5 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
6 218(l)(1) of that Act.
7 (17) "Arson investigator" means any person who is
8 employed as such by the Office of the State Fire Marshal
9 and is vested with such law enforcement duties as render
10 the person ineligible for coverage under the Social
11 Security Act by reason of Sections 218(d)(5)(A),
12 218(d)(8)(D), and 218(l)(1) of that Act. A person who
13 was employed as an arson investigator on January 1, 1995
14 and is no longer in service but not yet receiving a
15 retirement annuity may convert his or her creditable
16 service for employment as an arson investigator into
17 eligible creditable service by paying to the System the
18 difference between the employee contributions actually
19 paid for that service and the amounts that would have
20 been contributed if the applicant were contributing at
21 the rate applicable to persons with the same social
22 security status earning eligible creditable service on
23 the date of application.
24 (18) The term "State highway maintenance worker"
25 means a person who is either of the following:
26 (i) A person employed on a full-time basis by
27 the Illinois Department of Transportation in the
28 position of highway maintainer, highway maintenance
29 lead worker, highway maintenance lead/lead worker,
30 heavy construction equipment operator, power shovel
31 operator, or bridge mechanic; and whose principal
32 responsibility is to perform, on the roadway, the
33 actual maintenance necessary to keep the highways
34 that form a part of the State highway system in
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1 serviceable condition for vehicular traffic.
2 (ii) A person employed on a full-time basis by
3 the Illinois State Toll Highway Authority in the
4 position of equipment operator/laborer H-4,
5 equipment operator/laborer H-6, welder H-4,
6 welder H-6, mechanical/electrical H-4,
7 mechanical/electrical H-6, water/sewer H-4,
8 water/sewer H-6, sign maker/hanger H-4, sign
9 maker/hanger H-6, roadway lighting H-4, roadway
10 lighting H-6, structural H-4, structural H-6,
11 painter H-4, or painter H-6; and whose principal
12 responsibility is to perform, on the roadway, the
13 actual maintenance necessary to keep the Authority's
14 tollways in serviceable condition for vehicular
15 traffic.
16 However, service performed before April 15, 2001
17 does not constitute service as a State highway
18 maintenance worker unless the employee is in service as a
19 State highway maintenance worker on or after that date.
20 (19) The term "CMS automotive mechanic" means a
21 person who is employed by the Department of Central
22 Management Services at a correctional facility in the
23 position of automotive mechanic or automotive shop
24 supervisor.
25 (d) A security employee of the Department of
26 Corrections, and a security employee of the Department of
27 Human Services who is not a mental health police officer,
28 shall not be eligible for the alternative retirement annuity
29 provided by this Section unless he or she meets the following
30 minimum age and service requirements at the time of
31 retirement:
32 (i) 25 years of eligible creditable service and age
33 55; or
34 (ii) beginning January 1, 1987, 25 years of
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1 eligible creditable service and age 54, or 24 years of
2 eligible creditable service and age 55; or
3 (iii) beginning January 1, 1988, 25 years of
4 eligible creditable service and age 53, or 23 years of
5 eligible creditable service and age 55; or
6 (iv) beginning January 1, 1989, 25 years of
7 eligible creditable service and age 52, or 22 years of
8 eligible creditable service and age 55; or
9 (v) beginning January 1, 1990, 25 years of eligible
10 creditable service and age 51, or 21 years of eligible
11 creditable service and age 55; or
12 (vi) beginning January 1, 1991, 25 years of
13 eligible creditable service and age 50, or 20 years of
14 eligible creditable service and age 55.
15 Persons who have service credit under Article 16 of this
16 Code for service as a security employee of the Department of
17 Corrections or the Department of Human Services in a position
18 requiring certification as a teacher may count such service
19 toward establishing their eligibility under the service
20 requirements of this Section; but such service may be used
21 only for establishing such eligibility, and not for the
22 purpose of increasing or calculating any benefit.
23 (e) If a member enters military service while working in
24 a position in which eligible creditable service may be
25 earned, and returns to State service in the same or another
26 such position, and fulfills in all other respects the
27 conditions prescribed in this Article for credit for military
28 service, such military service shall be credited as eligible
29 creditable service for the purposes of the retirement annuity
30 prescribed in this Section.
31 (f) For purposes of calculating retirement annuities
32 under this Section, periods of service rendered after
33 December 31, 1968 and before October 1, 1975 as a covered
34 employee in the position of special agent, conservation
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1 police officer, mental health police officer, or investigator
2 for the Secretary of State, shall be deemed to have been
3 service as a noncovered employee, provided that the employee
4 pays to the System prior to retirement an amount equal to (1)
5 the difference between the employee contributions that would
6 have been required for such service as a noncovered employee,
7 and the amount of employee contributions actually paid, plus
8 (2) if payment is made after July 31, 1987, regular interest
9 on the amount specified in item (1) from the date of service
10 to the date of payment.
11 For purposes of calculating retirement annuities under
12 this Section, periods of service rendered after December 31,
13 1968 and before January 1, 1982 as a covered employee in the
14 position of investigator for the Department of Revenue shall
15 be deemed to have been service as a noncovered employee,
16 provided that the employee pays to the System prior to
17 retirement an amount equal to (1) the difference between the
18 employee contributions that would have been required for such
19 service as a noncovered employee, and the amount of employee
20 contributions actually paid, plus (2) if payment is made
21 after January 1, 1990, regular interest on the amount
22 specified in item (1) from the date of service to the date of
23 payment.
24 (g) A State policeman may elect, not later than January
25 1, 1990, to establish eligible creditable service for up to
26 10 years of his service as a policeman under Article 3, by
27 filing a written election with the Board, accompanied by
28 payment of an amount to be determined by the Board, equal to
29 (i) the difference between the amount of employee and
30 employer contributions transferred to the System under
31 Section 3-110.5, and the amounts that would have been
32 contributed had such contributions been made at the rates
33 applicable to State policemen, plus (ii) interest thereon at
34 the effective rate for each year, compounded annually, from
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1 the date of service to the date of payment.
2 Subject to the limitation in subsection (i), a State
3 policeman may elect, not later than July 1, 1993, to
4 establish eligible creditable service for up to 10 years of
5 his service as a member of the County Police Department under
6 Article 9, by filing a written election with the Board,
7 accompanied by payment of an amount to be determined by the
8 Board, equal to (i) the difference between the amount of
9 employee and employer contributions transferred to the System
10 under Section 9-121.10 and the amounts that would have been
11 contributed had those contributions been made at the rates
12 applicable to State policemen, plus (ii) interest thereon at
13 the effective rate for each year, compounded annually, from
14 the date of service to the date of payment.
15 Subject to the limitation in subsection (i), a State
16 policeman may elect, not later than July 1, 2002, to
17 establish eligible creditable service for up to 12 years of
18 his or her service as a Metropolitan Enforcement Group agent
19 employed by a municipal police department under Article 7 or
20 as a police officer under Article 15 by filing a written
21 election with the Board, accompanied by payment of an amount
22 to be determined by the Board, equal to (i) the difference
23 between the amount of employee and employer contributions
24 transferred to the System under Section 7-139.7(c) or
25 15-134.6 and the amounts that would have been contributed had
26 those contributions been made at the rates then applicable to
27 persons earning eligible creditable service, plus (ii)
28 interest thereon at the effective rate for each year,
29 compounded annually, from the date of service to the date of
30 payment.
31 (h) Subject to the limitation in subsection (i), a State
32 policeman or investigator for the Secretary of State may
33 elect to establish eligible creditable service for up to 12
34 years of his service as a policeman under Article 5, by
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1 filing a written election with the Board on or before January
2 31, 1992, and paying to the System by January 31, 1994 an
3 amount to be determined by the Board, equal to (i) the
4 difference between the amount of employee and employer
5 contributions transferred to the System under Section 5-236,
6 and the amounts that would have been contributed had such
7 contributions been made at the rates applicable to State
8 policemen, plus (ii) interest thereon at the effective rate
9 for each year, compounded annually, from the date of service
10 to the date of payment.
11 Subject to the limitation in subsection (i), a State
12 policeman, conservation police officer, or investigator for
13 the Secretary of State may elect to establish eligible
14 creditable service for up to 10 years of service as a
15 sheriff's law enforcement employee under Article 7, by filing
16 a written election with the Board on or before January 31,
17 1993, and paying to the System by January 31, 1994 an amount
18 to be determined by the Board, equal to (i) the difference
19 between the amount of employee and employer contributions
20 transferred to the System under Section 7-139.7, and the
21 amounts that would have been contributed had such
22 contributions been made at the rates applicable to State
23 policemen, plus (ii) interest thereon at the effective rate
24 for each year, compounded annually, from the date of service
25 to the date of payment.
26 (i) The total amount of eligible creditable service
27 established by any person under subsections (g), (h), (j),
28 (k), and (l), and (m) of this Section shall not exceed 12
29 years.
30 (j) Subject to the limitation in subsection (i), an
31 investigator for the Office of the State's Attorneys
32 Appellate Prosecutor or a controlled substance inspector may
33 elect to establish eligible creditable service for up to 10
34 years of his service as a policeman under Article 3 or a
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1 sheriff's law enforcement employee under Article 7, by filing
2 a written election with the Board, accompanied by payment of
3 an amount to be determined by the Board, equal to (1) the
4 difference between the amount of employee and employer
5 contributions transferred to the System under Section 3-110.6
6 or 7-139.8, and the amounts that would have been contributed
7 had such contributions been made at the rates applicable to
8 State policemen, plus (2) interest thereon at the effective
9 rate for each year, compounded annually, from the date of
10 service to the date of payment.
11 (k) Subject to the limitation in subsection (i) of this
12 Section, an alternative formula employee may elect to
13 establish eligible creditable service for periods spent as a
14 full-time law enforcement officer or full-time corrections
15 officer employed by the federal government or by a state or
16 local government located outside of Illinois, for which
17 credit is not held in any other public employee pension fund
18 or retirement system. To obtain this credit, the applicant
19 must file a written application with the Board by March 31,
20 1998, accompanied by evidence of eligibility acceptable to
21 the Board and payment of an amount to be determined by the
22 Board, equal to (1) employee contributions for the credit
23 being established, based upon the applicant's salary on the
24 first day as an alternative formula employee after the
25 employment for which credit is being established and the
26 rates then applicable to alternative formula employees, plus
27 (2) an amount determined by the Board to be the employer's
28 normal cost of the benefits accrued for the credit being
29 established, plus (3) regular interest on the amounts in
30 items (1) and (2) from the first day as an alternative
31 formula employee after the employment for which credit is
32 being established to the date of payment.
33 Subject to the limitation in subsection (i) of this
34 Section, an alternative formula employee may elect to
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1 establish eligible creditable service for periods spent as a
2 full-time law enforcement officer employed by the Chicago
3 Transit Authority for which credit is not held in any other
4 public employee pension fund or retirement system. To obtain
5 this credit, the applicant must (1) irrevocably relinquish
6 any credits that the applicant may have for the relevant
7 period in the retirement system established under Section
8 22-101 of this Code, (2) file a written application with the
9 Board by May 31, 2002, accompanied by evidence of eligibility
10 acceptable to the Board, and (3) pay to the System before
11 retirement an amount to be determined by the Board, equal to
12 (i) employee contributions for the credit being established,
13 based upon the applicant's salary on the first day as an
14 alternative formula employee after the employment for which
15 credit is being established and the rates then applicable to
16 the employee, plus (ii) an amount determined by the Board to
17 be the employer's normal cost of the benefits accrued for the
18 credit being established, plus (iii) regular interest on the
19 amounts in items (i) and (ii) from the first day as an
20 alternative formula employee after the employment for which
21 credit is being established to the date of payment.
22 (l) Subject to the limitation in subsection (i), a
23 security employee of the Department of Corrections may elect,
24 not later than July 1, 1998, to establish eligible creditable
25 service for up to 10 years of his or her service as a
26 policeman under Article 3, by filing a written election with
27 the Board, accompanied by payment of an amount to be
28 determined by the Board, equal to (i) the difference between
29 the amount of employee and employer contributions transferred
30 to the System under Section 3-110.5, and the amounts that
31 would have been contributed had such contributions been made
32 at the rates applicable to security employees of the
33 Department of Corrections, plus (ii) interest thereon at the
34 effective rate for each year, compounded annually, from the
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1 date of service to the date of payment.
2 (m) Subject to the limitation in subsection (i), an
3 investigator for the Office of the Attorney General may elect
4 to establish eligible creditable service for up to 12 years
5 of service as a policeman under Article 3 or 5, as a
6 sheriff's law enforcement employee or municipal conservator
7 of the peace under Article 7, or as a member of the County
8 Police Department under Article 9, by filing a written
9 election with the Board, accompanied by payment of an amount
10 to be determined by the Board, equal to (1) the difference
11 between the amount of employee and employer contributions
12 transferred to the System under Section 3-110.6, 5-236,
13 7-139.8, or 9-121.10 and the amounts that would have been
14 contributed had those contributions been made at the rates
15 applicable to State policemen, plus (2) interest thereon at
16 the effective rate for each year, compounded annually, from
17 the date of service to the date of payment.
18 (Source: P.A. 90-32, eff. 6-27-97; 91-357, eff. 7-29-99;
19 91-760, eff. 1-1-01.)
20 (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
21 Sec. 14-114. Automatic increase in retirement annuity.
22 (a) Any person receiving a retirement annuity under this
23 Article who retires having attained age 60, or who retires
24 before age 60 having at least 35 years of creditable service,
25 or who retires on or after January 1, 2001 at an age which,
26 when added to the number of years of his or her creditable
27 service, equals at least 85, shall, on January 1 next
28 following the first full year of retirement, have the amount
29 of the then fixed and payable monthly retirement annuity
30 increased 3%. Any person receiving a retirement annuity
31 under this Article who retires before attainment of age 60
32 and with less than (i) 35 years of creditable service if
33 retirement is before January 1, 2001, or (ii) the number of
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1 years of creditable service which, when added to the member's
2 age, would equal 85, if retirement is on or after January 1,
3 2001, shall have the amount of the fixed and payable
4 retirement annuity increased by 3% on the January 1 occurring
5 on or next following (1) attainment of age 60, or (2) the
6 first anniversary of retirement, whichever occurs later.
7 However, for persons who receive the alternative retirement
8 annuity under Section 14-110, references in this subsection
9 (a) to attainment of age 60 shall be deemed to refer to
10 attainment of age 55. For a person receiving early
11 retirement incentives under Section 14-108.3 whose retirement
12 annuity began after January 1, 1992 pursuant to an extension
13 granted under subsection (e) of that Section, the first
14 anniversary of retirement shall be deemed to be January 1,
15 1993. For a person whose retirement annuity is calculated,
16 in whole or in part, under Section 14-110 or subsection (g)
17 or (h) of Section 14-108, and who retires within the 90 days
18 following the effective date of this amendatory Act of the
19 92nd General Assembly, the first anniversary of retirement
20 shall be deemed to be January 1, 2002.
21 On each January 1 following the date of the initial
22 increase under this subsection, the employee's monthly
23 retirement annuity shall be increased by an additional 3%.
24 Beginning January 1, 1990, all automatic annual increases
25 payable under this Section shall be calculated as a
26 percentage of the total annuity payable at the time of the
27 increase, including previous increases granted under this
28 Article.
29 (b) The provisions of subsection (a) of this Section
30 shall be applicable to an employee only if the employee makes
31 the additional contributions required after December 31, 1969
32 for the purpose of the automatic increases for not less than
33 the equivalent of one full year. If an employee becomes an
34 annuitant before his additional contributions equal one full
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1 year's contributions based on his salary at the date of
2 retirement, the employee may pay the necessary balance of the
3 contributions to the system, without interest, and be
4 eligible for the increasing annuity authorized by this
5 Section.
6 (c) The provisions of subsection (a) of this Section
7 shall not be applicable to any annuitant who is on retirement
8 on December 31, 1969, and thereafter returns to State
9 service, unless the member has established at least one year
10 of additional creditable service following reentry into
11 service.
12 (d) In addition to other increases which may be provided
13 by this Section, on January 1, 1981 any annuitant who was
14 receiving a retirement annuity on or before January 1, 1971
15 shall have his retirement annuity then being paid increased
16 $1 per month for each year of creditable service. On January
17 1, 1982, any annuitant who began receiving a retirement
18 annuity on or before January 1, 1977, shall have his
19 retirement annuity then being paid increased $1 per month for
20 each year of creditable service.
21 On January 1, 1987, any annuitant who began receiving a
22 retirement annuity on or before January 1, 1977, shall have
23 the monthly retirement annuity increased by an amount equal
24 to 8¢ per year of creditable service times the number of
25 years that have elapsed since the annuity began.
26 (d-1) On July 1, 2001, every annuitant who began
27 receiving a retirement annuity before January 1, 1980 shall
28 have the monthly retirement annuity increased by whichever of
29 the following percentages is applicable:
30 5% if the annuity began in 1979;
31 10% if the annuity began in 1978;
32 14% if the annuity began in 1977;
33 14% if the annuity began in 1976;
34 18% if the annuity began in 1975;
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1 23% if the annuity began in 1974;
2 32% if the annuity began in 1973 or before.
3 The increase under this subsection shall be calculated as
4 a percentage of the amount of the retirement annuity payable
5 on June 30, 2001, including any increases previously received
6 under this Article, and shall be included in the calculation
7 of increases granted thereafter under subsection (a).
8 (e) Every person who receives the alternative retirement
9 annuity under Section 14-110 and who is eligible to receive
10 the 3% increase under subsection (a) on January 1, 1986,
11 shall also receive on that date a one-time increase in
12 retirement annuity equal to the difference between (1) his
13 actual retirement annuity on that date, including any
14 increases received under subsection (a), and (2) the amount
15 of retirement annuity he would have received on that date if
16 the amendments to subsection (a) made by Public Act 84-162
17 had been in effect since the date of his retirement.
18 (Source: P.A. 91-927, eff. 12-14-00.)
19 (40 ILCS 5/14-114.1 new)
20 Sec. 14-114.1. Reduction of purchasing power; policy;
21 report; increase.
22 (a) The General Assembly finds and declares that:
23 (1) The purchasing power of a fixed annuity can be
24 eroded over time by the effects of inflation and
25 increases in the general cost of living.
26 (2) For a person whose income consists primarily of
27 a fixed annuity, the reduction in purchasing power
28 resulting from increases in the cost of living can become
29 catastrophic over time, transforming a once-comfortable
30 retirement into a time of poverty and need.
31 (3) The State of Illinois is concerned about the
32 effects that a significant reduction in purchasing power
33 can have on the quality of life of its retired employees
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1 and their survivors.
2 (4) The General Assembly has previously addressed
3 this concern by providing for automatic annual increases
4 in retirement and survivor's annuities under this
5 Article. Recognizing that these automatic annual
6 increases, by themselves, are not a complete answer in
7 times of high inflation, the General Assembly has also,
8 from time to time, provided specific one-time increases
9 in annuities for certain categories of annuitants.
10 (b) It is the public policy of this State and the
11 intention of the General Assembly to protect annuitants
12 against significant decreases in the purchasing power of the
13 retirement and survivor's annuities granted under this
14 Article.
15 (c) The System shall regularly review the changes that
16 have occurred in the purchasing power of the retirement and
17 survivor's annuities being paid under this Article, and it
18 shall report to the General Assembly, the Governor, and the
19 Pension Laws Commission whenever it determines that the
20 original purchasing power of those annuities has been reduced
21 by 20% or more for any category or group of annuitants. The
22 System may include in the report its recommendations, if any,
23 for legislative action to address its findings.
24 (d) As used in this Section, the term "retirement and
25 survivor's annuities" means all annuities as defined in
26 Section 14-103.18, other than disability benefits.
27 (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
28 Sec. 14-119. Amount of widow's annuity.
29 (a) The widow's annuity shall be 50% of the amount of
30 retirement annuity payable to the member on the date of death
31 while on retirement if an annuitant, or on the date of his
32 death while in service if an employee, regardless of his age
33 on such date, or on the date of withdrawal if death occurred
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1 after termination of service under the conditions prescribed
2 in the preceding Section.
3 (b) If an eligible widow, regardless of age, has in her
4 care any unmarried child or children of the member under age
5 18 (under age 22 if a full-time student), the widow's annuity
6 shall be increased in the amount of 5% of the retirement
7 annuity for each such child, but the combined payments for a
8 widow and children shall not exceed 66 2/3% of the member's
9 earned retirement annuity.
10 The amount of retirement annuity from which the widow's
11 annuity is derived shall be that earned by the member without
12 regard to whether he attained age 60 prior to his withdrawal
13 under the conditions stated or prior to his death.
14 (c) Adopted children shall be considered as children of
15 the member only if the proceedings for adoption were
16 commenced at least 1 year prior to the member's death.
17 Marriage of a child shall render the child ineligible for
18 further consideration in the increase in the amount of the
19 widow's annuity.
20 Attainment of age 18 (age 22 if a full-time student)
21 shall render a child ineligible for further consideration in
22 the increase of the widow's annuity, but the annuity to the
23 widow shall be continued thereafter, without regard to her
24 age at that time.
25 (d) A widow's annuity payable on account of any covered
26 employee who shall have been a covered employee for at least
27 18 months shall be reduced by 1/2 of the amount of survivors
28 benefits to which his beneficiaries are eligible under the
29 provisions of the Federal Social Security Act, except that
30 (1) the amount of any widow's annuity payable under this
31 Article shall not be reduced by reason of any increase under
32 that Act which occurs after the offset required by this
33 subsection is first applied to that annuity, and (2) for
34 benefits granted on or after January 1, 1992, the offset
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1 under this subsection (d) shall not exceed 50% of the amount
2 of widow's annuity otherwise payable.
3 (e) Upon the death of a recipient of a widow's annuity
4 the excess, if any, of the member's accumulated
5 contributions plus credited interest over all annuity
6 payments to the member and widow, exclusive of the $500 lump
7 sum payment, shall be paid to the named beneficiary of the
8 widow, or if none has been named, to the estate of the widow,
9 provided no reversionary annuity is payable.
10 (f) On January 1, 1981, any recipient of a widow's
11 annuity who was receiving a widow's annuity on or before
12 January 1, 1971, shall have her widow's annuity then being
13 paid increased by 1% for each full year which has elapsed
14 from the date the widow's annuity began. On January 1, 1982,
15 any recipient of a widow's annuity who began receiving a
16 widow's annuity after January 1, 1971, but before January 1,
17 1981, shall have her widow's annuity then being paid
18 increased by 1% for each full year which has elapsed from the
19 date the widow's annuity began. On January 1, 1987, any
20 recipient of a widow's annuity who began receiving the
21 widow's annuity on or before January 1, 1977, shall have the
22 monthly widow's annuity increased by $1 for each full year
23 which has elapsed since the date the annuity began.
24 (f-1) On July 1, 2001, every recipient of a widow's
25 annuity whose original annuity began before January 1, 1980
26 shall have the monthly widow's annuity increased by whichever
27 of the following percentages is applicable:
28 5% if the original annuity began in 1979;
29 10% if the original annuity began in 1978;
30 14% if the original annuity began in 1977;
31 14% if the original annuity began in 1976;
32 18% if the original annuity began in 1975;
33 23% if the original annuity began in 1974;
34 32% if the original annuity began in 1973 or before.
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1 In the case of the survivor of a deceased annuitant who
2 died while receiving a retirement annuity, "original annuity"
3 means the deceased annuitant's retirement annuity; in all
4 other cases, "original annuity" means the widow's annuity.
5 The increase under this subsection shall be calculated as
6 a percentage of the amount of the widow's annuity payable on
7 June 30, 2001, including any increases previously received
8 under this Article, and shall be included in the calculation
9 of increases granted thereafter under subsection (g).
10 (g) Beginning January 1, 1990, every widow's annuity
11 shall be increased (1) on each January 1 occurring on or
12 after the commencement of the annuity if the deceased member
13 died while receiving a retirement annuity, or (2) in other
14 cases, on each January 1 occurring on or after the first
15 anniversary of the commencement of the annuity, by an amount
16 equal to 3% of the current amount of the annuity, including
17 any previous increases under this Article. Such increases
18 shall apply without regard to whether the deceased member was
19 in service on or after the effective date of Public Act
20 86-1488, but shall not accrue for any period prior to January
21 1, 1990.
22 (Source: P.A. 90-448, eff. 8-16-97.)
23 (40 ILCS 5/14-120) (from Ch. 108 1/2, par. 14-120)
24 Sec. 14-120. Survivors annuities - Conditions for
25 payments. A survivors annuity is established for all members
26 of the System. Upon the death of any male person who was a
27 member on July 19, 1961, however, his widow may have the
28 option of receiving the widow's annuity provided in this
29 Article, in lieu of the survivors annuity.
30 (a) A survivors annuity beneficiary, as herein defined,
31 is eligible for a survivors annuity if the deceased member
32 had completed at least 1 1/2 years of contributing creditable
33 service if death occurred:
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1 (1) while in service;
2 (2) while on an approved or authorized leave of
3 absence from service, not exceeding one year
4 continuously; or
5 (3) while in receipt of a non-occupational
6 disability or an occupational disability benefit.
7 (b) If death of the member occurs after withdrawal, the
8 survivors annuity beneficiary is eligible for such annuity
9 only if the member had fulfilled at the date of withdrawal
10 the prescribed service conditions for establishing a right in
11 a retirement annuity.
12 (c) Payment of the survivors annuity shall begin
13 immediately if the beneficiary is 50 years or over, or upon
14 attainment of age 50 if the beneficiary is under that age at
15 the date of the member's death. In the case of survivors of a
16 member whose death occurred between November 1, 1970 and July
17 15, 1971, the payment of the survivors annuity shall begin
18 upon October 1, 1977, if the beneficiary is then 50 years of
19 age or older, or upon the attainment of age 50 if the
20 beneficiary is under that age on October 1, 1977.
21 If an eligible child or children, under the care of the
22 spouse also survive the member, the survivors annuity shall
23 begin immediately without regard to whether the beneficiary
24 has attained age 50.
25 Benefits under this Section shall accrue and be payable
26 for whole calendar months, beginning on the first day of the
27 month after the initiating event occurs and ending on the
28 last day of the month in which the terminating event occurs.
29 (d) A survivor annuity beneficiary means:
30 (1) A spouse of a member or annuitant if:
31 (i) in the case of a member or annuitant who
32 dies before the effective date of this amendatory
33 Act of the 91st General Assembly, the current
34 marriage with the member or annuitant was in effect
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1 for at least one year at the date of death or
2 withdrawal, whichever first occurs; or
3 (ii) in the case of a member or annuitant who
4 dies on or after the effective date of this
5 amendatory Act of the 91st General Assembly, the
6 current marriage with the member or annuitant was in
7 effect for at least one year immediately prior to
8 the date of death, regardless of the date of
9 withdrawal.
10 (2) An unmarried child under age 18 (under age 22
11 if a full-time student) of the member or annuitant; an
12 unmarried stepchild under age 18 (under age 22 if a
13 full-time student) who has been such for at least one
14 year at the date of the member's death or at least one
15 year at the date of withdrawal, whichever first occurs;
16 an unmarried adopted child under age 18 (under age 22 if
17 a full-time student) if the adoption proceedings were
18 initiated at least one year prior to the death or
19 withdrawal of the member or annuitant, whichever first
20 occurs; and an unmarried child over age 18 if he or she
21 is dependent by reason of a physical or mental
22 disability, so long as the physical or mental disability
23 continues. For purposes of this subsection, disability
24 means inability to engage in any substantial gainful
25 activity by reason of any medically determinable physical
26 or mental impairment which can be expected to result in
27 death or which has lasted or can be expected to last for
28 a continuous period of not less than 12 months.
29 (3) A dependent parent of the member or annuitant;
30 a dependent step-parent by a marriage contracted before
31 the member or annuitant attained age 18; or a dependent
32 adopting parent by whom the member or annuitant was
33 adopted before he or she attained age 18.
34 (e) Payment of a survivors annuity to a beneficiary
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1 terminates upon: (1) remarriage before age 55 (for periods
2 prior to July 6, 2000) that occurs before the effective date
3 of this amendatory Act of the 91st General Assembly or death,
4 if the beneficiary is a spouse; (2) marriage or death, if the
5 beneficiary is a child; or (3) remarriage before age 55 or
6 death, if the beneficiary is a parent. Remarriage of a
7 prospective beneficiary prior to the attainment of age 50
8 disqualifies the beneficiary for the annuity expectancy
9 hereunder until July 6, 2000, if the remarriage occurs before
10 the effective date of this amendatory Act of the 91st General
11 Assembly. Termination due to marriage or remarriage of a
12 child or parent shall be permanent, regardless of any future
13 changes in marital status.
14 A surviving spouse whose survivor's annuity has been
15 terminated due to remarriage may apply for reinstatement of
16 that annuity. The reinstated annuity shall begin to accrue
17 on July 6, 2000, except that if, on July 6, 2000, the annuity
18 is payable to an eligible surviving child or parent, payment
19 of the annuity to the surviving spouse shall not be
20 reinstated until the annuity is no longer payable to any
21 eligible surviving child or parent. The reinstated annuity
22 shall include any one-time or annual increases received prior
23 to the date of termination, as well as any increases that
24 would otherwise have accrued from the date of termination to
25 the date of reinstatement. An eligible surviving spouse
26 whose expectation of receiving a survivor's annuity was lost
27 due to remarriage before attainment of age 50 shall also be
28 entitled to reinstatement under this subsection, but the
29 resulting survivor's annuity shall not begin to accrue sooner
30 than upon the surviving spouse's attainment of age 50.
31 The substantive changes made to this subsection by Public
32 Act 91-887 and this amendatory Act of the 92nd 91st General
33 Assembly (pertaining to remarriage prior to age 55 or 50)
34 apply without regard to whether the deceased participant or
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1 annuitant was in service on or after the effective date of
2 either this amendatory Act.
3 Any person whose survivors annuity was terminated during
4 1978 or 1979 due to remarriage at age 55 or over shall be
5 eligible to apply, not later than July 1, 1990, for a
6 resumption of that annuity, to begin on July 1, 1990.
7 (f) The term "dependent" relating to a survivors annuity
8 means a beneficiary of a survivors annuity who was receiving
9 from the member at the date of the member's death at least
10 1/2 of the support for maintenance including board, lodging,
11 medical care and like living costs.
12 (g) If there is no eligible spouse surviving the member,
13 or if a survivors annuity beneficiary includes a spouse who
14 dies or is disqualified by remarriage, the annuity is payable
15 to an unmarried child or children. If at the date of death
16 of the member there is no spouse or unmarried child, payments
17 shall be made to a dependent parent or parents. If no
18 eligible survivors annuity beneficiary survives the member,
19 the non-occupational death benefit is payable in the manner
20 provided in this Article.
21 (h) Survivor benefits do not affect any reversionary
22 annuity.
23 (i) If a survivors annuity beneficiary becomes entitled
24 to a widow's annuity or one or more survivors annuities or
25 both such annuities, the beneficiary shall elect to receive
26 only one of such annuities.
27 (j) Contributing creditable service under the State
28 Universities Retirement System and the Teachers' Retirement
29 System of the State of Illinois shall be considered in
30 determining whether the member has met the contributing
31 service requirements of this Section.
32 (k) In lieu of the Survivor's Annuity described in this
33 Section, the spouse of the member has the option to select
34 the Nonoccupational Death Benefit described in this Article,
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1 provided the spouse is the sole survivor and the sole
2 nominated beneficiary of the member.
3 (l) The changes made to this Section and Sections
4 14-118, 14-119, and 14-128 by this amendatory Act of 1997,
5 relating to benefits for certain unmarried children who are
6 full-time students under age 22, apply without regard to
7 whether the deceased member was in service on or after the
8 effective date of this amendatory Act of 1997. These changes
9 do not authorize the repayment of a refund or a re-election
10 of benefits, and any benefit or increase in benefits
11 resulting from these changes is not payable retroactively for
12 any period before the effective date of this amendatory Act
13 of 1997.
14 (Source: P.A. 90-448, eff. 8-16-97; 91-357, eff. 7-29-99;
15 91-887, eff. 7-6-00.)
16 (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
17 Sec. 14-121. Amount of survivors annuity. A survivors
18 annuity beneficiary shall be entitled upon death of the
19 member to a single sum payment of $1,000, payable pro rata
20 among all persons entitled thereto, together with a survivors
21 annuity payable at the rates and under the conditions
22 specified in this Article.
23 (a) If the survivors annuity beneficiary is a spouse,
24 the survivors annuity shall be 30% of final average
25 compensation subject to a maximum payment of $400 per month.
26 (b) If an eligible child or children under the care of a
27 spouse also survives the member, such spouse as natural
28 guardian of the child or children shall receive, in addition
29 to the foregoing annuity, 20% of final average compensation
30 on account of each such child and 10% of final average
31 compensation divided pro rata among such children, subject to
32 a maximum payment on account of all survivor annuity
33 beneficiaries of $600 per month, or 80% of the member's final
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1 average compensation, whichever is the lesser.
2 (c) If the survivors annuity beneficiary or
3 beneficiaries consists of an unmarried child or children, the
4 amount of survivors annuity shall be 20% of final average
5 compensation to each child, and 10% of final average
6 compensation divided pro rata among all such children
7 entitled to such annuity, subject to a maximum payment to all
8 children combined of $600 per month or 80% of the member's
9 final average compensation, whichever is the lesser.
10 (d) If the survivors annuity beneficiary is one or more
11 dependent parents, the annuity shall be 20% of final average
12 compensation to each parent and 10% of final average
13 compensation divided pro rata among the parents who qualify
14 for this annuity, subject to a maximum payment to both
15 dependent parents of $400 per month.
16 (e) The survivors annuity to the spouse, children or
17 dependent parents of a member whose death occurs after the
18 date of last withdrawal, or after retirement, or while in
19 service following reentry into service after retirement but
20 before completing 1 1/2 years of additional creditable
21 service, shall not exceed the lesser of 80% of the member's
22 earned retirement annuity at the date of death or the maximum
23 previously established in this Section.
24 (f) In applying the limitation prescribed on the
25 combined payments to 2 or more survivors annuity
26 beneficiaries, the annuity on account of each beneficiary
27 shall be reduced pro rata until such time as the number of
28 beneficiaries makes the reduction no longer applicable.
29 (g) A survivors annuity payable on account of any
30 covered employee who shall have been a covered employee for
31 at least 18 months at date of death or last withdrawal,
32 whichever is the later, shall be reduced by 1/2 of the
33 survivors benefits to which his beneficiaries are eligible
34 under the federal Social Security Act, except that (1) the
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1 survivors annuity payable under this Article shall not be
2 reduced by any increase under that Act which occurs after the
3 offset required by this subsection is first applied to that
4 annuity, and (2) for benefits granted on or after January 1,
5 1992, the offset under this subsection (g) shall not exceed
6 50% of the amount of survivors annuity otherwise payable.
7 (h) The minimum payment to a beneficiary hereunder shall
8 be $60 per month, which shall be reduced in accordance with
9 the limitation prescribed on the combined payments to all
10 beneficiaries of a member.
11 (i) Subject to the conditions set forth in Section
12 14-120, the minimum total survivors annuity benefit payable
13 to the survivors annuity beneficiaries of a deceased member
14 or annuitant whose death occurs on or after January 1, 1984,
15 shall be 50% of the amount of retirement annuity that was or
16 would have been payable to the deceased on the date of death,
17 regardless of the age of the deceased on such date. If the
18 minimum total benefit provided by this subsection exceeds the
19 maximum otherwise imposed by this Section, the minimum total
20 benefit shall nevertheless be payable. Any increase in the
21 total survivors annuity benefit resulting from the operation
22 of this subsection shall be divided among the survivors
23 annuity beneficiaries of the deceased in proportion to their
24 shares of the total survivors annuity benefit otherwise
25 payable under this Section.
26 (j) Any survivors annuity beneficiary whose annuity
27 terminates due to any condition specified in this Article
28 other than death shall be entitled to a refund of the excess,
29 if any, of the accumulated contributions of the member plus
30 credited interest over all payments to the member and
31 beneficiary or beneficiaries, exclusive of the single sum
32 payment of $1,000, provided no future survivors or
33 reversionary annuity benefits are payable.
34 (k) Upon the death of the last eligible recipient of a
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1 survivors annuity the excess, if any, of the member's
2 accumulated contributions plus credited interest over all
3 annuity payments to the member and survivors exclusive of the
4 single sum payment of $1000, shall be paid to the named
5 beneficiary of the last eligible survivor, or if none has
6 been named, to the estate of the last eligible survivor,
7 provided no reversionary annuity is payable.
8 (l) On January 1, 1981, any survivor who was receiving a
9 survivors annuity on or before January 1, 1971, shall have
10 his survivors annuity then being paid increased by 1% for
11 each full year which has elapsed from the date the annuity
12 began. On January 1, 1982, any survivor who began receiving
13 a survivor's annuity after January 1, 1971, but before
14 January 1, 1981, shall have his survivor's annuity then being
15 paid increased by 1% for each full year that has elapsed from
16 the date the annuity began. On January 1, 1987, any survivor
17 who began receiving a survivor's annuity on or before January
18 1, 1977, shall have the monthly survivor's annuity increased
19 by $1 for each full year which has elapsed since the date the
20 survivor's annuity began.
21 (m) Beginning January 1, 1990, every survivor's annuity
22 shall be increased (1) on each January 1 occurring on or
23 after the commencement of the annuity if the deceased member
24 died while receiving a retirement annuity, or (2) in other
25 cases, on each January 1 occurring on or after the first
26 anniversary of the commencement of the annuity, by an amount
27 equal to 3% of the current amount of the annuity, including
28 any previous increases under this Article. Such increases
29 shall apply without regard to whether the deceased member was
30 in service on or after the effective date of Public Act
31 86-1488, but shall not accrue for any period prior to January
32 1, 1990.
33 (n) On July 1, 2001, every recipient of a survivor's
34 annuity whose original annuity began before January 1, 1980
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1 shall have the monthly survivor's annuity increased by
2 whichever of the following percentages is applicable:
3 5% if the original annuity began in 1979;
4 10% if the original annuity began in 1978;
5 14% if the original annuity began in 1977;
6 14% if the original annuity began in 1976;
7 18% if the original annuity began in 1975;
8 23% if the original annuity began in 1974;
9 32% if the original annuity began in 1973 or before.
10 In the case of the survivor of a deceased annuitant who
11 died while receiving a retirement annuity, "original annuity"
12 means the deceased annuitant's retirement annuity; in all
13 other cases, "original annuity" means the survivor's annuity.
14 The increase under this subsection shall be calculated as
15 a percentage of the amount of the survivor's annuity payable
16 on June 30, 2001, including any increases previously received
17 under this Article, and shall be included in the calculation
18 of increases granted thereafter under subsection (m).
19 (Source: P.A. 86-273; 86-1488; 87-794.)
20 (40 ILCS 5/14-128) (from Ch. 108 1/2, par. 14-128)
21 Sec. 14-128. Occupational death benefit. An
22 occupational death benefit is provided for a member of the
23 System whose death, prior to retirement, is the proximate
24 result of bodily injuries sustained or a hazard undergone
25 while in the performance and within the scope of the member's
26 duties.
27 (a) Conditions for payment.
28 Exclusive of the lump sum payment provided for herein,
29 all annuities under this Section shall accrue and be payable
30 for complete calendar months, beginning on the first day of
31 the month next following the month in which the initiating
32 event occurs and ending on the last day of the month in which
33 the terminating event occurs.
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1 The following named survivors of the member may be
2 eligible for an annuity under this Section:
3 (i) The member's spouse.
4 (ii) An unmarried child of the member under age 18
5 (under age 22 if a full-time student); an unmarried
6 stepchild under age 18 (under age 22 if a full-time
7 student) who has been such for at least one year at the
8 date of the member's death; an unmarried adopted child
9 under age 18 (under age 22 if a full-time student) if the
10 adoption proceedings were initiated at least one year
11 prior to the death of the member; and an unmarried child
12 over age 18 who is dependent by reason of a physical or
13 mental disability, for so long as such physical or mental
14 disability continues. For the purposes of this Section
15 disability means inability to engage in any substantial
16 gainful activity by reason of any medically determinable
17 physical or mental impairment which can be expected to
18 result in death or which has lasted or can be expected to
19 last for a continuous period of not less than 12 months.
20 (iii) If no spouse or eligible children survive: a
21 dependent parent of the member; a dependent step-parent
22 by a marriage contracted before the member attained age
23 18; or a dependent adopting parent by whom the member was
24 adopted before he or she attained age 18.
25 The term "dependent" relating to an occupational death
26 benefit means a survivor of the member who was receiving from
27 the member at the date of the member's death at least 1/2 of
28 the support for maintenance including board, lodging, medical
29 care and like living costs.
30 Payment of the annuity shall continue until the
31 occurrence of the following:
32 (1) remarriage before age 55 (for periods prior to
33 July 6, 2000) that occurs before the effective date of
34 this amendatory Act of the 91st General Assembly or
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1 death, in the case of a surviving spouse;
2 (2) attainment of age 18 or termination of
3 disability, death, or marriage, in the case of an
4 eligible child;
5 (3) remarriage before age 55 or death, in the case
6 of a dependent parent.
7 If none of the aforementioned beneficiaries is living at
8 the date of death of the member, no occupational death
9 benefit shall be payable, but the nonoccupational death
10 benefit shall be payable as provided in this Article.
11 A surviving spouse whose occupational death benefit
12 annuity has been terminated due to remarriage may apply for
13 reinstatement of that annuity. The reinstated annuity shall
14 begin to accrue on July 6, 2000, except that if, on July 6,
15 2000, the annuity is payable to an eligible surviving child
16 or parent, payment of the annuity to the surviving spouse
17 shall not be reinstated until the annuity is no longer
18 payable to any eligible surviving child or parent. The
19 reinstated annuity shall include any one-time or annual
20 increases received prior to the date of termination, as well
21 as any increases that would otherwise have accrued from the
22 date of termination to the date of reinstatement.
23 The changes change made to this subsection by Public Act
24 91-887 and this amendatory Act of the 92nd 91st General
25 Assembly (pertaining to remarriage prior to age 55) apply
26 applies without regard to whether the deceased member was in
27 service on or after the effective date of either this
28 amendatory Act.
29 (b) Amount of benefit.
30 The member's accumulated contributions plus credited
31 interest shall be payable in a lump sum to such person as the
32 member has nominated by written direction, duly acknowledged
33 and filed with the Board, or if no such nomination to the
34 estate of the member. When an annuitant is re-employed by a
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1 Department, the accumulated contributions plus credited
2 interest payable on the member's account shall, if the member
3 has not previously elected a reversionary annuity, consist of
4 the excess, if any, of the member's total accumulated
5 contributions plus credited interest for all creditable
6 service over the total amount of all retirement annuity
7 payments received by the member prior to death.
8 In addition to the foregoing payment, an annuity is
9 provided for eligible survivors as follows:
10 (1) If the survivor is a spouse only, the annuity
11 shall be 50% of the member's final average compensation.
12 (2) If the spouse has in his or her care an
13 eligible child or children, the annuity shall be
14 increased by an amount equal to 15% of the final average
15 compensation on account of each such child, subject to a
16 limitation on the combined annuities to a surviving
17 spouse and children of 75% of final average compensation.
18 (3) If there is no surviving spouse, or if the
19 surviving spouse dies or remarries while a child remains
20 eligible, then each such child shall be entitled to an
21 annuity of 15% of the deceased member's final average
22 compensation, subject to a limitation of 50% of final
23 average compensation to all such children.
24 (4) If there is no surviving spouse or eligible
25 children, then an annuity shall be payable to the
26 member's dependent parents, equal to 25% of final average
27 compensation to each such beneficiary.
28 If any annuity payable under this Section is less than
29 the corresponding survivors annuity, the beneficiary or
30 beneficiaries of the annuity under this Section may elect to
31 receive the survivors annuity and the nonoccupational death
32 benefit provided for in this Article in lieu of the annuity
33 provided under this Section.
34 (c) Occupational death claims pending adjudication by
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1 the Industrial Commission or a ruling by the agency
2 responsible for determining the liability of the State under
3 the "Workers' Compensation Act" or "Workers' Occupational
4 Diseases Act" shall be payable under Sections 14-120 and
5 14-121 until a ruling or adjudication occurs, if the
6 beneficiary or beneficiaries: (1) meet all conditions for
7 payment as prescribed in this Article; and (2) execute an
8 assignment of benefits payable as a result of adjudication by
9 the Industrial Commission or a ruling by the agency
10 responsible for determining the liability of the State under
11 such Acts. The assignment shall be made to the System and
12 shall be for an amount equal to the excess of benefits paid
13 under Sections 14-120 and 14-121 over benefits payable as a
14 result of adjudication of the workers' compensation claim
15 computed from the date of death of the member.
16 (d) Every occupational death annuity payable under this
17 Section shall be increased on each January 1 occurring on or
18 after (i) January 1, 1990, or (ii) the first anniversary of
19 the commencement of the annuity, whichever occurs later, by
20 an amount equal to 3% of the current amount of the annuity,
21 including any previous increases under this Article, without
22 regard to whether the deceased member was in service on the
23 effective date of this amendatory Act of 1991.
24 (e) On July 1, 2001, every annuitant who began receiving
25 an occupational death annuity before January 1, 1980 shall
26 have the monthly annuity increased by whichever of the
27 following percentages is applicable:
28 5% if the annuity began in 1979;
29 10% if the annuity began in 1978;
30 14% if the annuity began in 1977;
31 14% if the annuity began in 1976;
32 18% if the annuity began in 1975;
33 23% if the annuity began in 1974;
34 32% if the annuity began in 1973 or before.
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1 The increase under this subsection shall be calculated as
2 a percentage of the amount of the occupational death annuity
3 payable on June 30, 2001, including any increases previously
4 received under this Article, and shall be included in the
5 calculation of increases granted thereafter under subsection
6 (d).
7 (Source: P.A. 90-448, eff. 8-16-97; 91-887, eff. 7-6-00.)
8 (40 ILCS 5/14-131) (from Ch. 108 1/2, par. 14-131)
9 Sec. 14-131. Contributions by State.
10 (a) The State shall make contributions to the System by
11 appropriations of amounts which, together with other employer
12 contributions from trust, federal, and other funds, employee
13 contributions, investment income, and other income, will be
14 sufficient to meet the cost of maintaining and administering
15 the System on a 90% funded basis in accordance with actuarial
16 recommendations.
17 For the purposes of this Section and Section 14-135.08,
18 references to State contributions refer only to employer
19 contributions and do not include employee contributions that
20 are picked up or otherwise paid by the State or a department
21 on behalf of the employee.
22 (b) The Board shall determine the total amount of State
23 contributions required for each fiscal year on the basis of
24 the actuarial tables and other assumptions adopted by the
25 Board, using the formulae formula in subsection (e) and
26 subsection (e-1). The minimum contribution to the System to
27 be made by the State for each fiscal year shall be the sum of
28 the amount determined under subsection (e) and the amount
29 determined under subsection (e-1).
30 The Board shall also determine a State contribution rate
31 for each fiscal year, expressed as a percentage of payroll,
32 based on the total required State contribution under
33 subsections (e) and (e-1) for that fiscal year (less the
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1 amount received by the System from appropriations under
2 Section 8.12 of the State Finance Act and Section 1 of the
3 State Pension Funds Continuing Appropriation Act, if any, for
4 the fiscal year ending on the June 30 immediately preceding
5 the applicable November 15 certification deadline), the
6 estimated payroll (including all forms of compensation) for
7 personal services rendered by eligible employees, and the
8 recommendations of the actuary.
9 For the purposes of this Section and Section 14.1 of the
10 State Finance Act, the term "eligible employees" includes
11 employees who participate in the System, persons who may
12 elect to participate in the System but have not so elected,
13 persons who are serving a qualifying period that is required
14 for participation, and annuitants employed by a department as
15 described in subdivision (a)(1) or (a)(2) of Section 14-111.
16 (c) Contributions shall be made by the several
17 departments for each pay period by warrants drawn by the
18 State Comptroller against their respective funds or
19 appropriations based upon vouchers stating the amount to be
20 so contributed. These amounts shall be based on the full
21 rate certified by the Board under Section 14-135.08 for that
22 fiscal year.
23 (d) If an employee is paid from trust funds or federal
24 funds, the department or other employer shall pay employer
25 contributions from those funds to the System at the certified
26 rate, unless the terms of the trust or the federal-State
27 agreement preclude the use of the funds for that purpose, in
28 which case the required employer contributions shall be paid
29 by the State.
30 (e) For State fiscal years 2011 through 2045, the
31 minimum contribution to the System to be made by the State
32 under this subsection (e) for each fiscal year shall be an
33 amount determined by the System to be sufficient to bring the
34 total assets of the System up to 90% of the total actuarial
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1 liabilities of the System (other than the liabilities
2 described in subsection (e-1) of this Section) by the end of
3 State fiscal year 2045. In making these determinations, the
4 required State contribution under this subsection (e) shall
5 be calculated each year as a level percentage of payroll over
6 the years remaining to and including fiscal year 2045 and
7 shall be determined under the projected unit credit actuarial
8 cost method.
9 For State fiscal years 1996 through 2010, the State
10 contribution to the System under this subsection (e), as a
11 percentage of the applicable employee payroll, shall be
12 increased in equal annual increments so that by State fiscal
13 year 2011, the State is contributing at the rate required
14 under this Section; except that (i) for State fiscal year
15 1998, for all purposes of this Code and any other law of this
16 State, the certified percentage of the applicable employee
17 payroll shall be 5.052% for employees earning eligible
18 creditable service under Section 14-110 and 6.500% for all
19 other employees, notwithstanding any contrary certification
20 made under Section 14-135.08 before the effective date of
21 this amendatory Act of 1997, and (ii) in the following
22 specified State fiscal years, the State contribution to the
23 System under this subsection (e) shall not be less than the
24 following indicated percentages of the applicable employee
25 payroll, even if the indicated percentage will produce a
26 State contribution in excess of the amount otherwise required
27 under this subsection and subsection (a): 9.8% in FY 1999;
28 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY 2002; 10.6%
29 in FY 2003; 10.8% in FY 2004; 11.0% in FY 2005; 11.2% in FY
30 2006; 11.4% in FY 2007; 11.6% in FY 2008; and 11.8% in FY
31 2009.
32 Beginning in State fiscal year 2046, the minimum State
33 contribution under this subsection (e) for each fiscal year
34 shall be the amount needed to maintain the total assets of
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1 the System at 90% of the total actuarial liabilities of the
2 System.
3 (e-1) The cost of the one-time increases granted by this
4 amendatory Act of the 92nd General Assembly under subsection
5 (d-1) of Section 14-114, subsection (f-1) of Section 14-119,
6 and subsection (n) of Section 14-121 shall be paid by the
7 State on a level dollar basis over a period of 10 years
8 beginning July 1, 2003. These contributions are in addition
9 to, and shall not be included in the calculation of, the
10 State contribution required under subsection (e), but shall
11 be included in the calculation of the annual payroll
12 percentage under subsection (b).
13 (Source: P.A. 89-136, eff. 7-14-95; 90-65, eff. 7-7-97.)
14 (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
15 Sec. 14-133. Contributions on behalf of members.
16 (a) Each participating employee shall make contributions
17 to the System, based on the employee's compensation, as
18 follows:
19 (1) Covered employees, except as indicated below,
20 3.5% for retirement annuity, and 0.5% for a widow or
21 survivors annuity;
22 (2) Noncovered employees, except as indicated
23 below, 7% for retirement annuity and 1% for a widow or
24 survivors annuity;
25 (3) Noncovered employees serving in a position in
26 which "eligible creditable service" as defined in Section
27 14-110 may be earned, 8.5% for retirement annuity and 1%
28 for a widow or survivors annuity plus the following
29 amount for retirement annuity: 8.5% through December 31,
30 2001; 9.5% in 2002; 10.5% in 2003; and 11.5% in 2004 and
31 thereafter;
32 (4) Covered employees serving in a position in
33 which "eligible creditable service" as defined in Section
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1 14-110 may be earned, 5% for retirement annuity and 0.5%
2 for a widow or survivors annuity plus the following
3 amount for retirement annuity: 5% through December 31,
4 2001; 6% in 2002; 7% in 2003; and 8% in 2004 and
5 thereafter;
6 (5) Each security employee of the Department of
7 Corrections or of the Department of Human Services who is
8 a covered employee, 5% for retirement annuity and 0.5%
9 for a widow or survivors annuity plus the following
10 amount for retirement annuity: 5% through December 31,
11 2001; 6% in 2002; 7% in 2003; and 8% in 2004 and
12 thereafter;
13 (6) Each security employee of the Department of
14 Corrections or of the Department of Human Services who is
15 not a covered employee, 8.5% for retirement annuity and
16 1% for a widow or survivors annuity plus the following
17 amount for retirement annuity: 8.5% through December 31,
18 2001; 9.5% in 2002; 10.5% in 2003; and 11.5% in 2004 and
19 thereafter.
20 (b) Contributions shall be in the form of a deduction
21 from compensation and shall be made notwithstanding that the
22 compensation paid in cash to the employee shall be reduced
23 thereby below the minimum prescribed by law or regulation.
24 Each member is deemed to consent and agree to the deductions
25 from compensation provided for in this Article, and shall
26 receipt in full for salary or compensation.
27 (Source: P.A. 89-507, eff. 7-1-97; 90-448, eff. 8-16-97.)
28 (40 ILCS 5/15-113.1) (from Ch. 108 1/2, par. 15-113.1)
29 Sec. 15-113.1. Service for employment with an employer
30 defined under Section 15-106. "Service for employment with
31 an employer defined under Section 15-106": Includes the
32 following periods:
33 (a) Periods prior to September 1, 1941 during which a
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1 person was permanently and continuously employed by an
2 employer.
3 (b) Periods after August 31, 1941 during which a person
4 was an employee except (1) those during which the employee
5 elected not to participate or was ineligible to participate,
6 (2) those during which the employee was on leave of absence
7 at less than 50% pay, except military and disability leave,
8 but failed, in accordance with rules prescribed by the board,
9 to elect to make and to pay the contributions required under
10 Section 15-157, and (3) those during which the employee's
11 eligibility for disability benefit was being considered by
12 the board or reviewed by the courts, if the disability
13 benefit was denied.
14 (c) Periods after August 31, 1941 during which a person
15 was employed at least one-half time for an employer preceding
16 the date of becoming a participant or during which a person
17 was employed at least one-half time for an employer not
18 subject to "The 1941 Act" which employer has since been
19 included as an employer under "The 1941 Act", or this
20 Article, provided the person makes the contributions required
21 under Section 15-157 based on the rate of earnings during
22 this period equal to the basic compensation on the date of
23 becoming a participating employee together with compound
24 interest from the date participation began to the date
25 payment is received by the board at the rate of 6% per annum
26 through August 31, 1982, and at the effective rates after
27 that date, and provided that the contributions required under
28 Section 15-155 are also made. However, no service credit
29 shall be allowed for any period of employment during which an
30 individual is excluded from the definition of an employee as
31 provided under subsection (b) of Section 15-107.
32 (d) A period of up to 2 years prior to January 1, 1981
33 during which a person was employed on a full-time basis by an
34 employer and could have participated in this System, but
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1 elected not to; provided that the person applies to the
2 System in writing before July 1, 2002 and pays to the System
3 an amount equal to the employee and employer contributions
4 that would have been received by the System if the person had
5 participated during that period, without interest. This
6 subsection (d) applies without regard to whether the person
7 currently participates or has service credit in the System.
8 (Source: P.A. 84-1028.)
9 (40 ILCS 5/15-134.6 new)
10 Sec. 15-134.6. Transfer of certain creditable service to
11 the Article 14 retirement system. Until July 1, 2002, an
12 active member of the Article 14 retirement system who is a
13 State policeman may transfer all or a portion of his or her
14 creditable service accumulated under this System for service
15 as a police officer to the Article 14 retirement system in
16 accordance with Section 14-110. The transfer of creditable
17 service shall be accompanied by payment from this System to
18 the Article 14 retirement system of:
19 (1) the amounts credited to the applicant for the
20 service to be transferred through employee contributions,
21 including interest, as of the date of transfer; and
22 (2) employer contributions equal to the amount
23 determined under item (1).
24 Participation in this System with respect to the transferred
25 service shall terminate on the date of transfer.
26 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
27 Sec. 15-136. Retirement annuities - Amount. The
28 provisions of this Section 15-136 apply only to those
29 participants who are participating in the traditional benefit
30 package or the portable benefit package and do not apply to
31 participants who are participating in the self-managed plan.
32 (a) The amount of a participant's retirement annuity,
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1 expressed in the form of a single-life annuity, shall be
2 determined by whichever of the following rules is applicable
3 and provides the largest annuity:
4 Rule 1: The retirement annuity shall be 1.67% of final
5 rate of earnings for each of the first 10 years of service,
6 1.90% for each of the next 10 years of service, 2.10% for
7 each year of service in excess of 20 but not exceeding 30,
8 and 2.30% for each year in excess of 30; or for persons who
9 retire on or after January 1, 1998, 2.2% of the final rate of
10 earnings for each year of service.
11 Rule 2: The retirement annuity shall be the sum of the
12 following, determined from amounts credited to the
13 participant in accordance with the actuarial tables and the
14 prescribed rate of interest in effect at the time the
15 retirement annuity begins:
16 (i) the normal annuity which can be provided on an
17 actuarially equivalent basis, by the accumulated normal
18 contributions as of the date the annuity begins; and
19 (ii) an annuity from employer contributions of an
20 amount equal to that which can be provided on an
21 actuarially equivalent basis from the accumulated normal
22 contributions made by the participant under Section
23 15-113.6 and Section 15-113.7 plus 1.4 times all other
24 accumulated normal contributions made by the participant.
25 With respect to a police officer or firefighter who
26 retires on or after August 14, 1998, the accumulated normal
27 contributions taken into account under clauses (i) and (ii)
28 of this Rule 2 shall include the additional normal
29 contributions made by the police officer or firefighter under
30 Section 15-157(a).
31 The amount of a retirement annuity calculated under this
32 Rule 2 shall be computed solely on the basis of the
33 participant's accumulated normal contributions, as specified
34 in this Rule and defined in Section 15-116. Neither an
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1 employee or employer contribution for early retirement under
2 Section 15-136.2 nor any other employer contribution shall be
3 used in the calculation of the amount of a retirement annuity
4 under this Rule 2.
5 This amendatory Act of the 91st General Assembly is a
6 clarification of existing law and applies to every
7 participant and annuitant without regard to whether status as
8 an employee terminates before the effective date of this
9 amendatory Act.
10 Rule 3: The retirement annuity of a participant who is
11 employed at least one-half time during the period on which
12 his or her final rate of earnings is based, shall be equal to
13 the participant's years of service not to exceed 30,
14 multiplied by (1) $96 if the participant's final rate of
15 earnings is less than $3,500, (2) $108 if the final rate of
16 earnings is at least $3,500 but less than $4,500, (3) $120 if
17 the final rate of earnings is at least $4,500 but less than
18 $5,500, (4) $132 if the final rate of earnings is at least
19 $5,500 but less than $6,500, (5) $144 if the final rate of
20 earnings is at least $6,500 but less than $7,500, (6) $156 if
21 the final rate of earnings is at least $7,500 but less than
22 $8,500, (7) $168 if the final rate of earnings is at least
23 $8,500 but less than $9,500, and (8) $180 if the final rate
24 of earnings is $9,500 or more, except that the annuity for
25 those persons having made an election under Section
26 15-154(a-1) shall be calculated and payable under the
27 portable retirement benefit program pursuant to the
28 provisions of Section 15-136.4.
29 Rule 4: A participant who is at least age 50 and has 25
30 or more years of service as a police officer or firefighter,
31 and a participant who is age 55 or over and has at least 20
32 but less than 25 years of service as a police officer or
33 firefighter, shall be entitled to a retirement annuity of
34 2 1/4% of the final rate of earnings for each of the first 10
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1 years of service as a police officer or firefighter, 2 1/2%
2 for each of the next 10 years of service as a police officer
3 or firefighter, and 2 3/4% for each year of service as a
4 police officer or firefighter in excess of 20. The
5 retirement annuity for all other service shall be computed
6 under Rule 1.
7 For purposes of this Rule 4, a participant's service as a
8 firefighter shall also include the following:
9 (i) service that is performed while the person is
10 an employee under subsection (h) of Section 15-107; and
11 (ii) in the case of an individual who was a
12 participating employee employed in the fire department of
13 the University of Illinois's Champaign-Urbana campus
14 immediately prior to the elimination of that fire
15 department and who immediately after the elimination of
16 that fire department transferred to another job with the
17 University of Illinois, service performed as an employee
18 of the University of Illinois in a position other than
19 police officer or firefighter, from the date of that
20 transfer until the employee's next termination of service
21 with the University of Illinois.
22 Rule 5: The retirement annuity of a participant who
23 elected early retirement under the provisions of Section
24 15-136.2 and who, on or before February 16, 1995, brought
25 administrative proceedings pursuant to the administrative
26 rules adopted by the System to challenge the calculation of
27 his or her retirement annuity shall be the sum of the
28 following, determined from amounts credited to the
29 participant in accordance with the actuarial tables and the
30 prescribed rate of interest in effect at the time the
31 retirement annuity begins:
32 (i) the normal annuity which can be provided on an
33 actuarially equivalent basis, by the accumulated normal
34 contributions as of the date the annuity begins; and
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1 (ii) an annuity from employer contributions of an
2 amount equal to that which can be provided on an
3 actuarially equivalent basis from the accumulated normal
4 contributions made by the participant under Section
5 15-113.6 and Section 15-113.7 plus 1.4 times all other
6 accumulated normal contributions made by the participant;
7 and
8 (iii) an annuity which can be provided on an
9 actuarially equivalent basis from the employee
10 contribution for early retirement under Section 15-136.2,
11 and an annuity from employer contributions of an amount
12 equal to that which can be provided on an actuarially
13 equivalent basis from the employee contribution for early
14 retirement under Section 15-136.2.
15 In no event shall a retirement annuity under this Rule 5
16 be lower than the amount obtained by adding (1) the monthly
17 amount obtained by dividing the combined employee and
18 employer contributions made under Section 15-136.2 by the
19 System's annuity factor for the age of the participant at the
20 beginning of the annuity payment period and (2) the amount
21 equal to the participant's annuity if calculated under Rule
22 1, reduced under Section 15-136(b) as if no contributions had
23 been made under Section 15-136.2.
24 With respect to a participant who is qualified for a
25 retirement annuity under this Rule 5 whose retirement annuity
26 began before the effective date of this amendatory Act of the
27 91st General Assembly, and for whom an employee contribution
28 was made under Section 15-136.2, the System shall recalculate
29 the retirement annuity under this Rule 5 and shall pay any
30 additional amounts due in the manner provided in Section
31 15-186.1 for benefits mistakenly set too low.
32 The amount of a retirement annuity calculated under this
33 Rule 5 shall be computed solely on the basis of those
34 contributions specifically set forth in this Rule 5. Except
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1 as provided in clause (iii) of this Rule 5, neither an
2 employee nor employer contribution for early retirement under
3 Section 15-136.2, nor any other employer contribution, shall
4 be used in the calculation of the amount of a retirement
5 annuity under this Rule 5.
6 The General Assembly has adopted the changes set forth in
7 Section 25 of this amendatory Act of the 91st General
8 Assembly in recognition that the decision of the Appellate
9 Court for the Fourth District in Mattis v. State Universities
10 Retirement System et al. might be deemed to give some right
11 to the plaintiff in that case. The changes made by Section
12 25 of this amendatory Act of the 91st General Assembly are a
13 legislative implementation of the decision of the Appellate
14 Court for the Fourth District in Mattis v. State Universities
15 Retirement System et al. with respect to that plaintiff.
16 The changes made by Section 25 of this amendatory Act of
17 the 91st General Assembly apply without regard to whether the
18 person is in service as an employee on or after its effective
19 date.
20 (b) The retirement annuity provided under Rules 1 and 3
21 above shall be reduced by 1/2 of 1% for each month the
22 participant is under age 60 at the time of retirement.
23 However, this reduction shall not apply in the following
24 cases:
25 (1) For a disabled participant whose disability
26 benefits have been discontinued because he or she has
27 exhausted eligibility for disability benefits under
28 clause (6) of Section 15-152;
29 (2) For a participant who has at least the number
30 of years of service required to retire at any age under
31 subsection (a) of Section 15-135; or
32 (3) For that portion of a retirement annuity which
33 has been provided on account of service of the
34 participant during periods when he or she performed the
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1 duties of a police officer or firefighter, if these
2 duties were performed for at least 5 years immediately
3 preceding the date the retirement annuity is to begin.
4 (c) The maximum retirement annuity provided under Rules
5 1, 2, 4, and 5 shall be the lesser of (1) the annual limit of
6 benefits as specified in Section 415 of the Internal Revenue
7 Code of 1986, as such Section may be amended from time to
8 time and as such benefit limits shall be adjusted by the
9 Commissioner of Internal Revenue, and (2) 80% of final rate
10 of earnings.
11 (d) An annuitant whose status as an employee terminates
12 after August 14, 1969 shall receive automatic increases in
13 his or her retirement annuity as follows:
14 Effective January 1 immediately following the date the
15 retirement annuity begins, the annuitant shall receive an
16 increase in his or her monthly retirement annuity of 0.125%
17 of the monthly retirement annuity provided under Rule 1, Rule
18 2, Rule 3, Rule 4, or Rule 5, contained in this Section,
19 multiplied by the number of full months which elapsed from
20 the date the retirement annuity payments began to January 1,
21 1972, plus 0.1667% of such annuity, multiplied by the number
22 of full months which elapsed from January 1, 1972, or the
23 date the retirement annuity payments began, whichever is
24 later, to January 1, 1978, plus 0.25% of such annuity
25 multiplied by the number of full months which elapsed from
26 January 1, 1978, or the date the retirement annuity payments
27 began, whichever is later, to the effective date of the
28 increase.
29 The annuitant shall receive an increase in his or her
30 monthly retirement annuity on each January 1 thereafter
31 during the annuitant's life of 3% of the monthly annuity
32 provided under Rule 1, Rule 2, Rule 3, Rule 4, or Rule 5
33 contained in this Section. The change made under this
34 subsection by P.A. 81-970 is effective January 1, 1980 and
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1 applies to each annuitant whose status as an employee
2 terminates before or after that date.
3 Beginning January 1, 1990, all automatic annual increases
4 payable under this Section shall be calculated as a
5 percentage of the total annuity payable at the time of the
6 increase, including all increases previously granted under
7 this Article.
8 The change made in this subsection by P.A. 85-1008 is
9 effective January 26, 1988, and is applicable without regard
10 to whether status as an employee terminated before that date.
11 (e) If, on January 1, 1987, or the date the retirement
12 annuity payment period begins, whichever is later, the sum of
13 the retirement annuity provided under Rule 1 or Rule 2 of
14 this Section and the automatic annual increases provided
15 under the preceding subsection or Section 15-136.1, amounts
16 to less than the retirement annuity which would be provided
17 by Rule 3, the retirement annuity shall be increased as of
18 January 1, 1987, or the date the retirement annuity payment
19 period begins, whichever is later, to the amount which would
20 be provided by Rule 3 of this Section. Such increased amount
21 shall be considered as the retirement annuity in determining
22 benefits provided under other Sections of this Article. This
23 paragraph applies without regard to whether status as an
24 employee terminated before the effective date of this
25 amendatory Act of 1987, provided that the annuitant was
26 employed at least one-half time during the period on which
27 the final rate of earnings was based.
28 (f) A participant is entitled to such additional annuity
29 as may be provided on an actuarially equivalent basis, by any
30 accumulated additional contributions to his or her credit.
31 However, the additional contributions made by the participant
32 toward the automatic increases in annuity provided under this
33 Section shall not be taken into account in determining the
34 amount of such additional annuity.
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1 (g) If, (1) by law, a function of a governmental unit,
2 as defined by Section 20-107 of this Code, is transferred in
3 whole or in part to an employer, and (2) a participant
4 transfers employment from such governmental unit to such
5 employer within 6 months after the transfer of the function,
6 and (3) the sum of (A) the annuity payable to the participant
7 under Rule 1, 2, or 3 of this Section (B) all proportional
8 annuities payable to the participant by all other retirement
9 systems covered by Article 20, and (C) the initial primary
10 insurance amount to which the participant is entitled under
11 the Social Security Act, is less than the retirement annuity
12 which would have been payable if all of the participant's
13 pension credits validated under Section 20-109 had been
14 validated under this system, a supplemental annuity equal to
15 the difference in such amounts shall be payable to the
16 participant.
17 (h) On January 1, 1981, an annuitant who was receiving a
18 retirement annuity on or before January 1, 1971 shall have
19 his or her retirement annuity then being paid increased $1
20 per month for each year of creditable service. On January 1,
21 1982, an annuitant whose retirement annuity began on or
22 before January 1, 1977, shall have his or her retirement
23 annuity then being paid increased $1 per month for each year
24 of creditable service.
25 (i) On January 1, 1987, any annuitant whose retirement
26 annuity began on or before January 1, 1977, shall have the
27 monthly retirement annuity increased by an amount equal to 8¢
28 per year of creditable service times the number of years that
29 have elapsed since the annuity began.
30 (j) On July 1, 2001, every annuitant who began receiving
31 a retirement annuity before January 1, 1980 shall have the
32 monthly retirement annuity increased by whichever of the
33 following percentages is applicable:
34 5% if the annuity began in 1979;
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1 10% if the annuity began in 1978;
2 14% if the annuity began in 1977;
3 14% if the annuity began in 1976;
4 18% if the annuity began in 1975;
5 23% if the annuity began in 1974;
6 32% if the annuity began in 1973 or before.
7 The increase under this subsection shall be calculated as
8 a percentage of the amount of the retirement annuity payable
9 on June 30, 2001, including any increases previously received
10 under this Article, and shall be included in the calculation
11 of increases granted thereafter under subsection (d).
12 (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
13 eff. 8-16-97; 90-576, eff. 3-31-98; 90-655, eff. 7-30-98;
14 90-766, eff. 8-14-98; 91-887 (Sections 20 and 25), eff.
15 7-6-00; revised 8-31-00.)
16 (40 ILCS 5/15-136.3)
17 Sec. 15-136.3. Minimum retirement annuity.
18 (a) Beginning January 1, 1997, any person who is
19 receiving a monthly retirement annuity under this Article
20 which, after inclusion of (1) all one-time and automatic
21 annual increases to which the person is entitled, (2) any
22 supplemental annuity payable under Section 15-136.1, and (3)
23 any amount deducted under Section 15-138 or 15-140 to provide
24 a reversionary annuity, is less than the minimum monthly
25 retirement benefit amount specified in subsection (b) of this
26 Section, shall be entitled to a monthly supplemental payment
27 equal to the difference.
28 (b) For purposes of the calculation in subsection (a),
29 the minimum monthly retirement benefit amount is the sum of
30 $25 for each year of service credit, up to a maximum of 30
31 years of service, plus the amount of the increase received by
32 the annuitant under subsection (j) of Section 15-136, if any.
33 (c) This Section applies to all persons receiving a
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1 retirement annuity under this Article, without regard to
2 whether or not employment terminated prior to the effective
3 date of this Section.
4 (Source: P.A. 89-616, eff. 8-9-96.)
5 (40 ILCS 5/15-137.1 new)
6 Sec. 15-137.1. Reduction of purchasing power; policy;
7 report; increase.
8 (a) The General Assembly finds and declares that:
9 (1) The purchasing power of a fixed annuity can be
10 eroded over time by the effects of inflation and
11 increases in the general cost of living.
12 (2) For a person whose income consists primarily of
13 a fixed annuity, the reduction in purchasing power
14 resulting from increases in the cost of living can become
15 catastrophic over time, transforming a once-comfortable
16 retirement into a time of poverty and need.
17 (3) The State of Illinois is concerned about the
18 effects that a significant reduction in purchasing power
19 can have on the quality of life of retired employees and
20 their survivors.
21 (4) The General Assembly has previously addressed
22 this concern by providing for automatic annual increases
23 in retirement and survivor's annuities under this
24 Article. Recognizing that these automatic annual
25 increases, by themselves, are not a complete answer in
26 times of high inflation, the General Assembly has also,
27 from time to time, provided specific one-time increases
28 in annuities for certain categories of annuitants.
29 (b) It is the public policy of this State and the
30 intention of the General Assembly to protect annuitants
31 against significant decreases in the purchasing power of the
32 retirement and survivor's annuities granted under this
33 Article.
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1 (c) The System shall regularly review the changes that
2 have occurred in the purchasing power of the retirement and
3 survivor's annuities being paid under this Article, and it
4 shall report to the General Assembly, the Governor, and the
5 Pension Laws Commission whenever it determines that the
6 original purchasing power of those annuities has been reduced
7 by 20% or more for any category or group of annuitants. The
8 System may include in the report its recommendations, if any,
9 for legislative action to address its findings.
10 (d) As used in this Section, the term "retirement and
11 survivor's annuities" means all retirement annuities and
12 those survivors insurance benefits payable in the form of an
13 annuity.
14 (e) This Section does not apply to any benefits under
15 the self-managed plan.
16 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
17 Sec. 15-145. Survivors insurance benefits; conditions
18 and amounts.
19 (a) The survivors insurance benefits provided under this
20 Section shall be payable to the eligible survivors of a
21 participant covered under the traditional benefit package
22 upon the death of (1) a participating employee with at least
23 1 1/2 years of service, (2) a participant who terminated
24 employment with at least 10 years of service, and (3) an
25 annuitant in receipt of a retirement annuity or disability
26 retirement annuity under this Article.
27 Service under the State Employees' Retirement System of
28 Illinois, the Teachers' Retirement System of the State of
29 Illinois and the Public School Teachers' Pension and
30 Retirement Fund of Chicago shall be considered in determining
31 eligibility for survivors benefits under this Section.
32 If by law, a function of a governmental unit, as defined
33 by Section 20-107, is transferred in whole or in part to an
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1 employer, and an employee transfers employment from this
2 governmental unit to such employer within 6 months after the
3 transfer of this function, the service credits in the
4 governmental unit's retirement system which have been
5 validated under Section 20-109 shall be considered in
6 determining eligibility for survivors benefits under this
7 Section.
8 (b) A surviving spouse of a deceased participant, or of
9 a deceased annuitant who did not take a refund or additional
10 annuity consisting of accumulated survivors insurance
11 contributions, shall receive a survivors annuity of 30% of
12 the final rate of earnings. Payments shall begin on the day
13 following the participant's or annuitant's death or the date
14 the surviving spouse attains age 50, whichever is later, and
15 continue until the death of the surviving spouse. The
16 annuity shall be payable to the surviving spouse prior to
17 attainment of age 50 if the surviving spouse has in his or
18 her care a deceased participant's or annuitant's dependent
19 unmarried child under age 18 (under age 22 if a full-time
20 student) who is eligible for a survivors annuity.
21 Remarriage of a surviving spouse prior to attainment of
22 age 55 that occurs before the effective date of this
23 amendatory Act of the 91st General Assembly shall disqualify
24 him or her for the receipt of a survivors annuity until July
25 6, 2000.
26 A surviving spouse whose survivors annuity has been
27 terminated due to remarriage may apply for reinstatement of
28 that annuity. The reinstated annuity shall begin to accrue
29 on July 6, 2000, except that if, on July 6, 2000, the annuity
30 is payable to an eligible surviving child or parent, payment
31 of the annuity to the surviving spouse shall not be
32 reinstated until the annuity is no longer payable to any
33 eligible surviving child or parent. The reinstated annuity
34 shall include any one-time or annual increases received prior
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1 to the date of termination, as well as any increases that
2 would otherwise have accrued from the date of termination to
3 the date of reinstatement. An eligible surviving spouse
4 whose expectation of receiving a survivors annuity was lost
5 due to remarriage before attainment of age 50 shall also be
6 entitled to reinstatement under this subsection, but the
7 resulting survivors annuity shall not begin to accrue sooner
8 than upon the surviving spouse's attainment of age 50.
9 The changes made to this subsection by this amendatory
10 Act of the 92nd General Assembly (pertaining to remarriage)
11 apply without regard to whether the deceased participant or
12 annuitant was in service on or after the effective date of
13 this amendatory Act.
14 (c) Each dependent unmarried child under age 18 (under
15 age 22 if a full-time student) of a deceased participant, or
16 of a deceased annuitant who did not take a refund or
17 additional annuity consisting of accumulated survivors
18 insurance contributions, shall receive a survivors annuity
19 equal to the sum of (1) 20% of the final rate of earnings,
20 and (2) 10% of the final rate of earnings divided by the
21 number of children entitled to this benefit. Payments shall
22 begin on the day following the participant's or annuitant's
23 death and continue until the child marries, dies, or attains
24 age 18 (age 22 if a full-time student). If the child is in
25 the care of a surviving spouse who is eligible for survivors
26 insurance benefits, the child's benefit shall be paid to the
27 surviving spouse.
28 Each unmarried child over age 18 of a deceased
29 participant or of a deceased annuitant who had a survivor's
30 insurance beneficiary at the time of his or her retirement,
31 and who was dependent upon the participant or annuitant by
32 reason of a physical or mental disability which began prior
33 to the date the child attained age 18 (age 22 if a full-time
34 student), shall receive a survivor's annuity equal to the sum
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1 of (1) 20% of the final rate of earnings, and (2) 10% of the
2 final rate of earnings divided by the number of children
3 entitled to survivors benefits. Payments shall begin on the
4 day following the participant's or annuitant's death and
5 continue until the child marries, dies, or is no longer
6 disabled. If the child is in the care of a surviving spouse
7 who is eligible for survivors insurance benefits, the child's
8 benefit may be paid to the surviving spouse. For the
9 purposes of this Section, disability means inability to
10 engage in any substantial gainful activity by reason of any
11 medically determinable physical or mental impairment that can
12 be expected to result in death or that has lasted or can be
13 expected to last for a continuous period of at least one
14 year.
15 (d) Each dependent parent of a deceased participant, or
16 of a deceased annuitant who did not take a refund or
17 additional annuity consisting of accumulated survivors
18 insurance contributions, shall receive a survivors annuity
19 equal to the sum of (1) 20% of final rate of earnings, and
20 (2) 10% of final rate of earnings divided by the number of
21 parents who qualify for the benefit. Payments shall begin
22 when the parent reaches age 55 or the day following the
23 participant's or annuitant's death, whichever is later, and
24 continue until the parent dies. Remarriage of a parent prior
25 to attainment of age 55 shall disqualify the parent for the
26 receipt of a survivors annuity.
27 (e) In addition to the survivors annuity provided above,
28 each survivors insurance beneficiary shall, upon death of the
29 participant or annuitant, receive a lump sum payment of
30 $1,000 divided by the number of such beneficiaries.
31 (f) The changes made in this Section by Public Act
32 81-712 pertaining to survivors annuities in cases of
33 remarriage prior to age 55 shall apply to each survivors
34 insurance beneficiary who remarries after June 30, 1979,
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1 regardless of the date that the participant or annuitant
2 terminated his employment or died.
3 The change made to this Section by this amendatory Act of
4 the 91st General Assembly, pertaining to remarriage prior to
5 age 55, applies without regard to whether the deceased
6 participant or annuitant was in service on or after the
7 effective date of this amendatory Act of the 91st General
8 Assembly.
9 (g) On January 1, 1981, any person who was receiving a
10 survivors annuity on or before January 1, 1971 shall have the
11 survivors annuity then being paid increased by 1% for each
12 full year which has elapsed from the date the annuity began.
13 On January 1, 1982, any survivor whose annuity began after
14 January 1, 1971, but before January 1, 1981, shall have the
15 survivor's annuity then being paid increased by 1% for each
16 year which has elapsed from the date the survivor's annuity
17 began. On January 1, 1987, any survivor who began receiving a
18 survivor's annuity on or before January 1, 1977, shall have
19 the monthly survivor's annuity increased by $1 for each full
20 year which has elapsed since the date the survivor's annuity
21 began.
22 (g-1) On July 1, 2001, every recipient of a survivor's
23 annuity whose original annuity began before January 1, 1980
24 shall have the monthly survivor's annuity increased by
25 whichever of the following percentages is applicable:
26 5% if the original annuity began in 1979;
27 10% if the original annuity began in 1978;
28 14% if the original annuity began in 1977;
29 14% if the original annuity began in 1976;
30 18% if the original annuity began in 1975;
31 23% if the original annuity began in 1974;
32 32% if the original annuity began in 1973 or before.
33 In the case of the survivor of a deceased annuitant who
34 died while receiving a retirement annuity, "original annuity"
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1 means the deceased annuitant's retirement annuity; in all
2 other cases, "original annuity" means the survivor's annuity.
3 The increase under this subsection shall be calculated as
4 a percentage of the amount of the survivor's annuity payable
5 on June 30, 2001, including any increases previously received
6 under this Article, and shall be included in the calculation
7 of increases granted thereafter under subsection (j).
8 (h) If the sum of the lump sum and total monthly
9 survivor benefits payable under this Section upon the death
10 of a participant amounts to less than the sum of the death
11 benefits payable under items (2) and (3) of Section 15-141,
12 the difference shall be paid in a lump sum to the beneficiary
13 of the participant who is living on the date that this
14 additional amount becomes payable.
15 (i) If the sum of the lump sum and total monthly
16 survivor benefits payable under this Section upon the death
17 of an annuitant receiving a retirement annuity or disability
18 retirement annuity amounts to less than the death benefit
19 payable under Section 15-142, the difference shall be paid to
20 the beneficiary of the annuitant who is living on the date
21 that this additional amount becomes payable.
22 (j) Effective on the later of (1) January 1, 1990, or
23 (2) the January 1 on or next after the date on which the
24 survivor annuity begins, if the deceased member died while
25 receiving a retirement annuity, or in all other cases the
26 January 1 nearest the first anniversary of the date the
27 survivor annuity payments begin, every survivors insurance
28 beneficiary shall receive an increase in his or her monthly
29 survivors annuity of 3%. On each January 1 after the initial
30 increase, the monthly survivors annuity shall be increased by
31 3% of the total survivors annuity provided under this
32 Article, including previous increases provided by this
33 subsection. Such increases shall apply to the survivors
34 insurance beneficiaries of each participant and annuitant,
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1 whether or not the employment status of the participant or
2 annuitant terminates before the effective date of this
3 amendatory Act of 1990. This subsection (j) also applies to
4 persons receiving a survivor annuity under the portable
5 benefit package.
6 (k) If the Internal Revenue Code of 1986, as amended,
7 requires that the survivors benefits be payable at an age
8 earlier than that specified in this Section the benefits
9 shall begin at the earlier age, in which event, the
10 survivor's beneficiary shall be entitled only to that amount
11 which is equal to the actuarial equivalent of the benefits
12 provided by this Section.
13 (l) The changes made to this Section and Section 15-131
14 by this amendatory Act of 1997, relating to benefits for
15 certain unmarried children who are full-time students under
16 age 22, apply without regard to whether the deceased member
17 was in service on or after the effective date of this
18 amendatory Act of 1997. These changes do not authorize the
19 repayment of a refund or a re-election of benefits, and any
20 benefit or increase in benefits resulting from these changes
21 is not payable retroactively for any period before the
22 effective date of this amendatory Act of 1997.
23 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98;
24 91-887, eff. 7-6-00.)
25 (40 ILCS 5/15-148) (from Ch. 108 1/2, par. 15-148)
26 Sec. 15-148. Survivors insurance benefits - General
27 provisions. The survivors annuity is payable monthly. Any
28 annuity due but unpaid upon the death of the annuitant, shall
29 be paid to the annuitant's estate.
30 A person who becomes entitled to more than one survivors
31 insurance benefit because of the death of 2 or more persons
32 shall receive only the largest of the benefits; except that
33 this limitation does not apply to a survivors insurance
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1 beneficiary who is entitled to a survivor's annuity by reason
2 of a mental or physical disability.
3 A survivors insurance beneficiary or the personal
4 representative of the estate of a deceased survivors
5 insurance beneficiary or the personal representative of a
6 survivors insurance beneficiary who is under a legal
7 disability may waive the right to receive survivorship
8 benefits, provided written notice of the waiver is given by
9 the beneficiary or representative to the board within 6
10 months after the death of the participant or annuitant and
11 before any payment is made pursuant to an application filed
12 by such person.
13 (Source: P.A. 83-1440.)
14 (40 ILCS 5/15-155) (from Ch. 108 1/2, par. 15-155)
15 Sec. 15-155. Employer contributions.
16 (a) The State of Illinois shall make contributions by
17 appropriations of amounts which, together with the other
18 employer contributions from trust, federal, and other funds,
19 employee contributions, income from investments, and other
20 income of this System, will be sufficient to meet the cost of
21 maintaining and administering the System on a 90% funded
22 basis in accordance with actuarial recommendations.
23 The Board shall determine the amount of State
24 contributions required for each fiscal year on the basis of
25 the actuarial tables and other assumptions adopted by the
26 Board and the recommendations of the actuary, using the
27 formulae formula in subsection (a-1) and subsection (a-2).
28 The minimum contribution to the System to be made by the
29 State for each fiscal year shall be the sum of the amount
30 determined under subsection (a-1) and the amount determined
31 under subsection (a-2).
32 (a-1) For State fiscal years 2011 through 2045, the
33 minimum contribution to the System to be made by the State
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1 for each fiscal year shall be an amount determined by the
2 System to be sufficient to bring the total assets of the
3 System up to 90% of the total actuarial liabilities of the
4 System (other than the liabilities described in subsection
5 (a-2) of this Section) by the end of State fiscal year 2045.
6 In making these determinations, the required State
7 contribution shall be calculated each year as a level
8 percentage of payroll over the years remaining to and
9 including fiscal year 2045 and shall be determined under the
10 projected unit credit actuarial cost method.
11 For State fiscal years 1996 through 2010, the State
12 contribution to the System, as a percentage of the applicable
13 employee payroll, shall be increased in equal annual
14 increments so that by State fiscal year 2011, the State is
15 contributing at the rate required under this Section.
16 Beginning in State fiscal year 2046, the minimum State
17 contribution for each fiscal year shall be the amount needed
18 to maintain the total assets of the System at 90% of the
19 total actuarial liabilities of the System.
20 (a-2) The cost of the one-time increases granted by this
21 amendatory Act of the 92nd General Assembly under subsection
22 (j) of Section 15-136, subsection (b) of Section 15-136.3
23 (insofar as it derives from that subsection (j) increase),
24 and subsection (g-1) of Section 15-145 shall be paid by the
25 State on a level dollar basis over a period of 10 years
26 beginning July 1, 2003. These contributions are in addition
27 to, and shall not be included in in the calculation of, the
28 State contribution required under subsection (a-1).
29 (b) If an employee is paid from trust or federal funds,
30 the employer shall pay to the Board contributions from those
31 funds which are sufficient to cover the accruing normal costs
32 on behalf of the employee. However, universities having
33 employees who are compensated out of local auxiliary funds,
34 income funds, or service enterprise funds are not required to
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1 pay such contributions on behalf of those employees. The
2 local auxiliary funds, income funds, and service enterprise
3 funds of universities shall not be considered trust funds for
4 the purpose of this Article, but funds of alumni
5 associations, foundations, and athletic associations which
6 are affiliated with the universities included as employers
7 under this Article and other employers which do not receive
8 State appropriations are considered to be trust funds for the
9 purpose of this Article.
10 (b-1) The City of Urbana and the City of Champaign shall
11 each make employer contributions to this System for their
12 respective firefighter employees who participate in this
13 System pursuant to subsection (h) of Section 15-107. The
14 rate of contributions to be made by those municipalities
15 shall be determined annually by the Board on the basis of the
16 actuarial assumptions adopted by the Board and the
17 recommendations of the actuary, and shall be expressed as a
18 percentage of salary for each such employee. The Board shall
19 certify the rate to the affected municipalities as soon as
20 may be practical. The employer contributions required under
21 this subsection shall be remitted by the municipality to the
22 System at the same time and in the same manner as employee
23 contributions.
24 (c) Through State fiscal year 1995: The total employer
25 contribution shall be apportioned among the various funds of
26 the State and other employers, whether trust, federal, or
27 other funds, in accordance with actuarial procedures approved
28 by the board. State of Illinois contributions for employers
29 receiving State appropriations for personal services shall be
30 payable from appropriations made to the employers or to the
31 System. The contributions for Class I community colleges
32 covering earnings other than those paid from trust and
33 federal funds, shall be payable solely from appropriations to
34 the Illinois Community College Board or the System for
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1 employer contributions.
2 (d) Beginning in State fiscal year 1996, the required
3 State contributions to the System shall be appropriated
4 directly to the System and shall be payable through vouchers
5 issued in accordance with subsection (c) of Section 15-165.
6 (e) The State Comptroller shall draw warrants payable to
7 the System upon proper certification by the System or by the
8 employer in accordance with the appropriation laws and this
9 Code.
10 (f) Normal costs under this Section means liability for
11 pensions and other benefits which accrues to the System
12 because of the credits earned for service rendered by the
13 participants during the fiscal year and expenses of
14 administering the System, but shall not include the principal
15 of or any redemption premium or interest on any bonds issued
16 by the board or any expenses incurred or deposits required in
17 connection therewith.
18 (Source: P.A. 89-602, eff. 8-2-96; 90-576, eff. 3-31-98.)
19 (40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
20 Sec. 15-165. To certify amounts and submit vouchers.
21 (a) The Board shall certify to the Governor on or before
22 November 15 of each year the appropriation required from
23 State funds for the purposes of this System for the following
24 fiscal year. The certification shall include a copy of the
25 actuarial recommendations upon which it is based.
26 (b) The Board shall certify to the State Comptroller or
27 employer, as the case may be, from time to time, by its
28 president and secretary, with its seal attached, the amounts
29 payable to the System from the various funds.
30 (c) Beginning in State fiscal year 1996, on or as soon
31 as possible after the 15th day of each month the Board shall
32 submit vouchers for payment of State contributions to the
33 System, in a total monthly amount of one-twelfth of the
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1 required annual State contribution certified under subsection
2 (a). These vouchers shall be paid by the State Comptroller
3 and Treasurer by warrants drawn on the funds appropriated to
4 the System for that fiscal year.
5 If in any month the amount remaining unexpended from all
6 other appropriations to the System for the applicable fiscal
7 year (including the appropriations to the System under
8 Section 8.12 of the State Finance Act and Section 1 of the
9 State Pension Funds Continuing Appropriation Act) is less
10 than the amount lawfully vouchered under this Section, the
11 difference shall be paid from the General Revenue Fund under
12 the continuing appropriation authority provided in Section
13 1.1 of the State Pension Funds Continuing Appropriation Act.
14 (d) So long as the payments received are the full amount
15 lawfully vouchered under this Section, payments received by
16 the System under this Section shall be applied first toward
17 the employer contribution to the self-managed plan
18 established under Section 15-158.2. Payments shall be
19 applied second toward the employer's portion of the normal
20 costs of the System, as defined in subsection (f) of Section
21 15-155. The balance shall be applied toward the unfunded
22 actuarial liabilities of the System.
23 (e) In the event that the System does not receive, as a
24 result of legislative enactment or otherwise, payments
25 sufficient to fully fund the employer contribution to the
26 self-managed plan established under Section 15-158.2 and to
27 fully fund that portion of the employer's portion of the
28 normal costs of the System, as calculated in accordance with
29 subsections (a-1) and (a-2) of Section 15-155 15-155(a-1),
30 then any payments received shall be applied proportionately
31 to the optional retirement program established under Section
32 15-158.2 and to the employer's portion of the normal costs of
33 the System, as calculated in accordance with subsections
34 (a-1) and (a-2) of Section 15-155 15-155(a-1).
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1 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
2 (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
3 Sec. 16-106. Teacher. "Teacher": The following
4 individuals, provided that, for employment prior to July 1,
5 1990, they are employed on a full-time basis, or if not
6 full-time, on a permanent and continuous basis in a position
7 in which services are expected to be rendered for at least
8 one school term:
9 (1) Any educational, administrative, professional
10 or other staff employed in the public common schools
11 included within this system in a position requiring
12 certification under the law governing the certification
13 of teachers;
14 (2) Any educational, administrative, professional
15 or other staff employed in any facility of the Department
16 of Children and Family Services or the Department of
17 Human Services, in a position requiring certification
18 under the law governing the certification of teachers,
19 and any person who (i) works in such a position for the
20 Department of Corrections, (ii) was a member of this
21 System on May 31, 1987, and (iii) did not elect to become
22 a member of the State Employees' Retirement System
23 pursuant to Section 14-108.2 of this Code; except that
24 "teacher" does not include any person who (A) becomes a
25 security employee of the Department of Human Services, as
26 defined in Section 14-110, after the effective date of
27 this amendatory Act of the 92nd General Assembly, or (B)
28 becomes a member of the State Employees' Retirement
29 System pursuant to Section 14-108.2c of this Code;
30 (3) Any regional superintendent of schools,
31 assistant regional superintendent of schools, State
32 Superintendent of Education; any person employed by the
33 State Board of Education as an executive; any executive
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1 of the boards engaged in the service of public common
2 school education in school districts covered under this
3 system of which the State Superintendent of Education is
4 an ex-officio member;
5 (4) Any employee of a school board association
6 operating in compliance with Article 23 of the School
7 Code who is certificated under the law governing the
8 certification of teachers;
9 (5) Any person employed by the retirement system
10 who:
11 (i) was an employee of and a participant in
12 the system on the effective date of this amendatory
13 Act of the 92nd General Assembly, or
14 (ii) becomes an employee of the system on or
15 after the effective date of this amendatory Act of
16 the 92nd General Assembly; as an executive, and any
17 person employed by the retirement system who is
18 certificated under the law governing the
19 certification of teachers;
20 (6) Any educational, administrative, professional
21 or other staff employed by and under the supervision and
22 control of a regional superintendent of schools, provided
23 such employment position requires the person to be
24 certificated under the law governing the certification of
25 teachers and is in an educational program serving 2 or
26 more districts in accordance with a joint agreement
27 authorized by the School Code or by federal legislation;
28 (7) Any educational, administrative, professional
29 or other staff employed in an educational program
30 serving 2 or more school districts in accordance with a
31 joint agreement authorized by the School Code or by
32 federal legislation and in a position requiring
33 certification under the laws governing the certification
34 of teachers;
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1 (8) Any officer or employee of a statewide teacher
2 organization or officer of a national teacher
3 organization who is certified under the law governing
4 certification of teachers, provided: (i) the individual
5 had previously established creditable service under this
6 Article, (ii) the individual files with the system an
7 irrevocable election to become a member, and (iii) the
8 individual does not receive credit for such service under
9 any other Article of this Code;
10 (9) Any educational, administrative, professional,
11 or other staff employed in a charter school operating in
12 compliance with the Charter Schools Law who is
13 certificated under the law governing the certification of
14 teachers.
15 An annuitant receiving a retirement annuity under this
16 Article or under Article 17 of this Code who is temporarily
17 employed by a board of education or other employer not
18 exceeding that permitted under Section 16-118 is not a
19 "teacher" for purposes of this Article. A person who has
20 received a single-sum retirement benefit under Section
21 16-136.4 of this Article is not a "teacher" for purposes of
22 this Article.
23 (Source: P.A. 89-450, eff. 4-10-96; 89-507, eff. 7-1-97;
24 90-14, eff. 7-1-97; 90-448, eff. 8-16-97.)
25 (40 ILCS 5/16-129.1)
26 Sec. 16-129.1. Optional increase in retirement annuity.
27 (a) A member of the System may qualify for the augmented
28 rate under subdivision (a)(B)(1) of Section 16-133 for all
29 years of creditable service earned before July 1, 1998 by
30 making the optional contribution specified in subsection (b).
31 A member may not elect to qualify for the augmented rate for
32 only a portion of his or her creditable service earned before
33 July 1, 1998.
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1 (b) The contribution shall be an amount equal to 1.0% of
2 the member's highest salary rate in the 4 consecutive school
3 years immediately prior to but not including the school year
4 in which the application occurs, multiplied by the number of
5 years of creditable service earned by the member before July
6 1, 1998 or 20, whichever is less. This contribution shall be
7 reduced by 1.0% of that salary rate for every 3 full years of
8 creditable service earned by the member after June 30, 1998.
9 The contribution shall be further reduced at the rate of 25%
10 of the contribution (as reduced for service after June 30,
11 1998) for each year of the member's total creditable service
12 in excess of 34 years. The contribution shall not in any
13 event exceed 20% of that salary rate.
14 The member shall pay to the System the amount of the
15 contribution as calculated at the time of application under
16 this Section. The amount of the contribution determined
17 under this subsection shall be recalculated at the time of
18 retirement, and if the System determines that the amount paid
19 by the member exceeds the recalculated amount, the System
20 shall refund the difference to the member with regular
21 interest from the date of payment to the date of refund.
22 The contribution required by this subsection shall be
23 paid in one of the following ways or in a combination of the
24 following ways that does not extend over more than 5 years:
25 (i) in a lump sum on or before the date of
26 retirement;
27 (ii) in substantially equal installments over a
28 period of time not to exceed 5 years, as a deduction from
29 salary in accordance with subsection (b) of Section
30 16-154;
31 (iii) if the member becomes an annuitant before
32 June 30, 2003, in substantially equal monthly
33 installments over a 24-month period, by reducing the
34 annuitant's monthly benefit over a 24-month period by the
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1 amount of the otherwise applicable contribution. For
2 federal and Illinois tax purposes, the monthly amount by
3 which the annuitant's benefit is reduced shall not be
4 treated as a contribution by the annuitant, but rather as
5 a reduction of the annuitant's monthly benefit.
6 (c) If the member fails to make the full contribution
7 under this Section in a timely fashion, the payments made
8 under this Section shall be refunded to the member, without
9 interest. If the member dies before making the full
10 contribution, the payments made under this Section, together
11 with regular interest thereon, shall be refunded to the
12 member's designated beneficiary for benefits under Section
13 16-138.
14 (d) For purposes of this Section and subdivision
15 (a)(B)(1) of Section 16-133, optional creditable service
16 established by a member shall be deemed to have been earned
17 at the time of the employment or other qualifying event upon
18 which the service is based, rather than at the time the
19 credit was established in this System.
20 (e) The contributions required under this Section are
21 the responsibility of the teacher and not the teacher's
22 employer. However, an employer of teachers may, after the
23 effective date of this amendatory Act of 1998, specifically
24 agree, through collective bargaining or otherwise, to make
25 the contributions required by this Section on behalf of those
26 teachers.
27 (f) A person who, on or after July 1, 1998 and before
28 June 4, 1999, began receiving a retirement annuity calculated
29 at the augmented rate may apply in writing to have the
30 annuity recalculated to reflect the changes to this Section
31 and Section 16-133 that were enacted in Public Act 91-17.
32 The amount of any resulting decrease in the optional
33 contribution shall be refunded to the annuitant, without
34 interest. Any resulting increase in retirement annuity shall
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1 take effect on the next annuity payment date following the
2 date of application under this subsection.
3 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.)
4 (40 ILCS 5/16-131.6) (from Ch. 108 1/2, par. 16-131.6)
5 Sec. 16-131.6. Transfer to Article 14.
6 (a) Any active member of the State Employees' Retirement
7 System of Illinois may apply for transfer to that System of
8 credits and creditable service accumulated under this System
9 for service as a teacher employed by the Department of
10 Corrections. Such creditable service shall be transferred
11 forthwith. Payment by this System to the State Employees'
12 Retirement System shall be made at the same time and shall
13 consist of:
14 (1) the amounts accumulated to the credit of the
15 applicant for such service, including interest, on the
16 books of this System on the date of transfer; and
17 (2) employer contributions in an amount equal to
18 the amount of member contributions as determined under
19 item (1).
20 Participation in this System as to any credits transferred
21 under this subsection Section shall terminate on the date of
22 transfer.
23 (b) Any active member of the State Employees' Retirement
24 System of Illinois may apply for transfer to that System of
25 credits and creditable service accumulated under this System
26 for service as a security employee of the Department of Human
27 Services as defined (at the time of application) in Section
28 14-110. That creditable service shall be transferred
29 forthwith. Payment by this System to the State Employees'
30 Retirement System shall be made at the same time and shall
31 consist of:
32 (1) the amounts accumulated to the credit of the
33 applicant for that service, including interest, on the
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1 books of this System on the date of transfer, but
2 excluding any contribution paid by the member under
3 Section 16-129.1 to upgrade that credit to the augmented
4 rate, which shall be refunded to the member; and
5 (2) employer contributions in an amount equal to
6 the amount of member contributions as determined under
7 item (1).
8 Participation in this System as to any credits transferred
9 under this subsection shall terminate on the date of
10 transfer.
11 (Source: P.A. 86-1488.)
12 (40 ILCS 5/16-132) (from Ch. 108 1/2, par. 16-132)
13 Sec. 16-132. Retirement annuity eligibility. A member
14 who has at least 34 years of creditable service is entitled
15 to a retirement annuity at any age. A member who has at
16 least 20 years of creditable service is entitled to a
17 retirement annuity upon or after attainment of age 55. A
18 member who has at least 10 but less than 20 years of
19 creditable service is entitled to a retirement annuity upon
20 or after attainment of age 60. A member who has at least 5
21 but less than 10 years of creditable service is entitled to a
22 retirement annuity upon or after attainment of age 62. A
23 member who (i) has earned during the period immediately
24 preceding the last day of service at least one year of
25 contributing creditable service as an employee of a
26 department as defined in Section 14-103.04, (ii) has earned
27 at least 5 years of contributing creditable service as an
28 employee of a department as defined in Section 14-103.04, and
29 (iii) retires on or after January 1, 2001 is entitled to a
30 retirement annuity upon or after attainment of an age which,
31 when added to the number of years of his or her total
32 creditable service, equals at least 85. Portions of years
33 shall be counted as decimal equivalents.
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1 A member who is eligible to receive a retirement annuity
2 of at least 74.6% of final average salary and will attain age
3 55 on or before December 31 during the year which commences
4 on July 1 shall be deemed to attain age 55 on the preceding
5 June 1.
6 A member meeting the above eligibility conditions is
7 entitled to a retirement annuity upon written application to
8 the board setting forth the date the member wishes the
9 retirement annuity to commence. However, the effective date
10 of the retirement annuity shall be no earlier than the day
11 following the last day of creditable service, regardless of
12 the date of official termination of employment. To be
13 eligible for a retirement annuity, a member shall not be
14 employed as a teacher in the schools included under this
15 System or under Article 17, unless the member is disabled (in
16 which event, eligibility for salary must cease), or unless
17 the System is required by federal law to commence payment due
18 to the member's age; the changes to this sentence made by
19 this amendatory Act of 1991 shall apply without regard to
20 whether the member terminated employment before or after its
21 effective date.
22 (Source: P.A. 90-582, eff. 5-27-98; 91-927, eff. 12-14-00.)
23 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
24 Sec. 16-133. Retirement annuity; amount.
25 (a) The amount of the retirement annuity shall be the
26 larger of the amounts determined under paragraphs (A) and (B)
27 below:
28 (A) An amount consisting of the sum of the
29 following:
30 (1) An amount that can be provided on an
31 actuarially equivalent basis by the member's
32 accumulated contributions at the time of retirement;
33 and
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1 (2) The sum of (i) the amount that can be
2 provided on an actuarially equivalent basis by the
3 member's accumulated contributions representing
4 service prior to July 1, 1947, and (ii) the amount
5 that can be provided on an actuarially equivalent
6 basis by the amount obtained by multiplying 1.4
7 times the member's accumulated contributions
8 covering service subsequent to June 30, 1947; and
9 (3) If there is prior service, 2 times the
10 amount that would have been determined under
11 subparagraph (2) of paragraph (A) above on account
12 of contributions which would have been made during
13 the period of prior service creditable to the member
14 had the System been in operation and had the member
15 made contributions at the contribution rate in
16 effect prior to July 1, 1947.
17 (B) An amount consisting of the greater of the
18 following:
19 (1) For creditable service earned before July
20 1, 1998 that has not been augmented under Section
21 16-129.1: 1.67% of final average salary for each of
22 the first 10 years of creditable service, 1.90% of
23 final average salary for each year in excess of 10
24 but not exceeding 20, 2.10% of final average salary
25 for each year in excess of 20 but not exceeding 30,
26 and 2.30% of final average salary for each year in
27 excess of 30; and
28 For creditable service earned on or after July
29 1, 1998 by a member who has at least 24 years of
30 creditable service on July 1, 1998 and who does not
31 elect to augment service under Section 16-129.1:
32 2.2% of final average salary for each year of
33 creditable service earned on or after July 1, 1998
34 but before the member reaches a total of 30 years of
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1 creditable service and 2.3% of final average salary
2 for each year of creditable service earned on or
3 after July 1, 1998 and after the member reaches a
4 total of 30 years of creditable service; and
5 For all other creditable service: 2.2% of
6 final average salary for each year of creditable
7 service; or
8 (2) 1.5% of final average salary for each year
9 of creditable service plus the sum $7.50 for each of
10 the first 20 years of creditable service.
11 The amount of the retirement annuity determined under
12 this paragraph (B) shall be reduced by 1/2 of 1% for each
13 month that the member is less than age 60 at the time the
14 retirement annuity begins. However, this reduction shall
15 not apply (i) if the member has at least 34 35 years of
16 creditable service, or (ii) if the member retires on
17 account of disability under Section 16-149.2 of this
18 Article with at least 20 years of creditable service, or
19 (iii) if the member (1) has earned during the period
20 immediately preceding the last day of service at least
21 one year of contributing creditable service as an
22 employee of a department as defined in Section 14-103.04,
23 (2) has earned at least 5 years of contributing
24 creditable service as an employee of a department as
25 defined in Section 14-103.04, (3) retires on or after
26 January 1, 2001, and (4) retires having attained an age
27 which, when added to the number of years of his or her
28 total creditable service, equals at least 85. Portions
29 of years shall be counted as decimal equivalents.
30 (b) For purposes of this Section, final average salary
31 shall be the average salary for the highest 4 consecutive
32 years within the last 10 years of creditable service as
33 determined under rules of the board. The minimum final
34 average salary shall be considered to be $2,400 per year.
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1 In the determination of final average salary for members
2 other than elected officials and their appointees when such
3 appointees are allowed by statute, that part of a member's
4 salary for any year beginning after June 30, 1979 which
5 exceeds the member's annual full-time salary rate with the
6 same employer for the preceding year by more than 20% shall
7 be excluded. The exclusion shall not apply in any year in
8 which the member's creditable earnings are less than 50% of
9 the preceding year's mean salary for downstate teachers as
10 determined by the survey of school district salaries provided
11 in Section 2-3.103 of the School Code.
12 (c) In determining the amount of the retirement annuity
13 under paragraph (B) of this Section, a fractional year shall
14 be granted proportional credit.
15 (d) The retirement annuity determined under paragraph
16 (B) of this Section shall be available only to members who
17 render teaching service after July 1, 1947 for which member
18 contributions are required, and to annuitants who re-enter
19 under the provisions of Section 16-150.
20 (e) The maximum retirement annuity provided under
21 paragraph (B) of this Section shall be 75% of final average
22 salary.
23 (f) A member retiring after the effective date of this
24 amendatory Act of 1998 shall receive a pension equal to 75%
25 of final average salary if the member is qualified to receive
26 a retirement annuity equal to at least 74.6% of final average
27 salary under this Article or as proportional annuities under
28 Article 20 of this Code.
29 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99;
30 91-887, eff. 7-6-00; 91-927, eff. 12-14-00.)
31 (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
32 Sec. 16-133.1. Automatic annual increase in annuity.
33 (a) Each member with creditable service and retiring on
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1 or after August 26, 1969 is entitled to the automatic annual
2 increases in annuity provided under this Section while
3 receiving a retirement annuity or disability retirement
4 annuity from the system.
5 An annuitant shall first be entitled to an initial
6 increase under this Section on the January 1 next following
7 the first anniversary of retirement, or January 1 of the year
8 next following attainment of age 61, whichever is later. At
9 such time, the system shall pay an initial increase
10 determined as follows:
11 (1) 1.5% of the originally granted retirement
12 annuity or disability retirement annuity multiplied by
13 the number of years elapsed, if any, from the date of
14 retirement until January 1, 1972, plus
15 (2) 2% of the originally granted annuity multiplied
16 by the number of years elapsed, if any, from the date of
17 retirement or January 1, 1972, whichever is later, until
18 January 1, 1978, plus
19 (3) 3% of the originally granted annuity multiplied
20 by the number of years elapsed from the date of
21 retirement or January 1, 1978, whichever is later, until
22 the effective date of the initial increase.
23 However, the initial annual increase calculated under this
24 Section for the recipient of a disability retirement annuity
25 granted under Section 16-149.2 shall be reduced by an amount
26 equal to the total of all increases in that annuity received
27 under Section 16-149.5 (but not exceeding 100% of the amount
28 of the initial increase otherwise provided under this
29 Section).
30 Following the initial increase, automatic annual
31 increases in annuity shall be payable on each January 1
32 thereafter during the lifetime of the annuitant, determined
33 as a percentage of the originally granted retirement annuity
34 or disability retirement annuity for increases granted prior
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1 to January 1, 1990, and calculated as a percentage of the
2 total amount of annuity, including previous increases under
3 this Section, for increases granted on or after January 1,
4 1990, as follows: 1.5% for periods prior to January 1, 1972,
5 2% for periods after December 31, 1971 and prior to January
6 1, 1978, and 3% for periods after December 31, 1977.
7 (b) The automatic annual increases in annuity provided
8 under this Section shall not be applicable unless a member
9 has made contributions toward such increases for a period
10 equivalent to one full year of creditable service. If a
11 member contributes for service performed after August 26,
12 1969 but the member becomes an annuitant before such
13 contributions amount to one full year's contributions based
14 on the salary at the date of retirement, he or she may pay
15 the necessary balance of the contributions to the system and
16 be eligible for the automatic annual increases in annuity
17 provided under this Section.
18 (c) Each member shall make contributions toward the cost
19 of the automatic annual increases in annuity as provided
20 under Section 16-152.
21 (d) An annuitant receiving a retirement annuity or
22 disability retirement annuity on July 1, 1969, who
23 subsequently re-enters service as a teacher is eligible for
24 the automatic annual increases in annuity provided under this
25 Section if he or she renders at least one year of creditable
26 service following the latest re-entry.
27 (e) In addition to the automatic annual increases in
28 annuity provided under this Section, an annuitant who meets
29 the service requirements of this Section and whose retirement
30 annuity or disability retirement annuity began on or before
31 January 1, 1971 shall receive, on January 1, 1981, an
32 increase in the annuity then being paid of one dollar per
33 month for each year of creditable service. On January 1,
34 1982, an annuitant whose retirement annuity or disability
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1 retirement annuity began on or before January 1, 1977 shall
2 receive an increase in the annuity then being paid of one
3 dollar per month for each year of creditable service.
4 On January 1, 1987, any annuitant whose retirement
5 annuity began on or before January 1, 1977, shall receive an
6 increase in the monthly retirement annuity equal to 8¢ per
7 year of creditable service times the number of years that
8 have elapsed since the annuity began.
9 (f) On July 1, 2001, every annuitant who began receiving
10 a retirement annuity before January 1, 1980 shall have the
11 monthly retirement annuity increased by whichever of the
12 following percentages is applicable:
13 5% if the annuity began in 1979;
14 10% if the annuity began in 1978;
15 14% if the annuity began in 1977;
16 14% if the annuity began in 1976;
17 18% if the annuity began in 1975;
18 23% if the annuity began in 1974;
19 32% if the annuity began in 1973 or before.
20 The increase under this subsection shall be calculated as
21 a percentage of the amount of the retirement annuity payable
22 on June 30, 2001, including any increases previously received
23 under this Article, and shall be included in the calculation
24 of increases granted thereafter under subsection (a).
25 (Source: P.A. 91-927, eff. 12-14-00.)
26 (40 ILCS 5/16-134.1 new)
27 Sec. 16-134.1. Reduction of purchasing power; policy;
28 report; increase.
29 (a) The General Assembly finds and declares that:
30 (1) The purchasing power of a fixed annuity can be
31 eroded over time by the effects of inflation and
32 increases in the general cost of living.
33 (2) For a person whose income consists primarily of
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1 a fixed annuity, the reduction in purchasing power
2 resulting from increases in the cost of living can become
3 catastrophic over time, transforming a once-comfortable
4 retirement into a time of poverty and need.
5 (3) The State of Illinois is concerned about the
6 effects that a significant reduction in purchasing power
7 can have on the quality of life of retired employees and
8 their survivors.
9 (4) The General Assembly has previously addressed
10 this concern by providing for automatic annual increases
11 in retirement and survivor's annuities under this
12 Article. Recognizing that these automatic annual
13 increases, by themselves, are not a complete answer in
14 times of high inflation, the General Assembly has also,
15 from time to time, provided specific one-time increases
16 in annuities for certain categories of annuitants.
17 (b) It is the public policy of this State and the
18 intention of the General Assembly to protect annuitants
19 against significant decreases in the purchasing power of the
20 retirement and survivor's annuities granted under this
21 Article.
22 (c) The System shall regularly review the changes that
23 have occurred in the purchasing power of the retirement and
24 survivor's annuities being paid under this Article, and it
25 shall report to the General Assembly, the Governor, and the
26 Pension Laws Commission whenever it determines that the
27 original purchasing power of those annuities has been reduced
28 by 20% or more for any category or group of annuitants. The
29 System may include in the report its recommendations, if any,
30 for legislative action to address its findings.
31 (40 ILCS 5/16-143) (from Ch. 108 1/2, par. 16-143)
32 Sec. 16-143. Survivors' benefits - other conditions and
33 limitations. The benefits provided under Sections 16-141 and
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1 16-142, shall be subject to the following further conditions
2 and limitations:
3 (1) The period during which a member was in receipt of a
4 disability or occupational disability benefit shall be
5 considered as creditable service at the annual salary rate on
6 which the member last made contributions.
7 (2) All service prior to July 24, 1959, for which
8 creditable service is granted towards a retirement annuity
9 shall be considered as creditable service.
10 (3) No benefits shall be payable unless a member, or a
11 disabled member, returning to service, has made contributions
12 to the system for at least one month after July 24, 1959,
13 except that an annuitant must have contributed to the system
14 for at least 1 year of creditable service after July 24,
15 1959.
16 (4) Creditable service under the State Employees'
17 Retirement System of Illinois, the State Universities
18 Retirement System and the Public School Teachers' Pension and
19 Retirement Fund of Chicago shall be considered in determining
20 whether the member has met the creditable service
21 requirement.
22 (5) If an eligible beneficiary qualifies for a
23 survivors' benefit because of pension credits established by
24 the participant or annuitant in another system covered by
25 Article 20, and the combined survivors' benefits exceed the
26 highest survivors' benefit payable by either system based
27 upon the combined pension credits, the survivors' benefit
28 payable by this system shall be reduced to that amount which
29 when added to the survivors' benefit payable by the other
30 system would equal this highest survivors' benefit. If the
31 other system has a similar provision for adjustment of the
32 survivors' benefit, the respective proportional survivors'
33 benefits shall be reduced proportionately according to the
34 ratio which the amount of each proportional survivors'
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1 benefit bears to the aggregate of all proportional survivors'
2 benefits. If a survivors' benefit is payable by another
3 system covered by Article 20, and the survivor elects to
4 waive the monthly survivors' benefit and accept a lump sum
5 payment or death benefit in lieu of the monthly survivors'
6 benefit, this system shall, for the purpose of adjusting the
7 monthly survivors' benefit under this paragraph, assume that
8 the survivor had been entitled to a monthly survivors'
9 benefit which, in accordance with actuarial tables of this
10 system, is the actuarial equivalent of the amount of the lump
11 sum payment or death benefit.
12 (6) Remarriage of a surviving spouse prior to attainment
13 of age 55 that occurs before the effective date of this
14 amendatory Act of the 91st General Assembly shall terminate
15 his or her survivors' benefits until July 6, 2000.
16 A surviving spouse whose survivors' benefit has been
17 terminated due to remarriage may apply for reinstatement of
18 that benefit. The reinstated benefit shall begin to accrue
19 on July 6, 2000, except that if, on July 6, 2000, the benefit
20 is payable to an eligible surviving child or parent, payment
21 of the benefit to the surviving spouse shall not be
22 reinstated until the benefit is no longer payable to any
23 eligible surviving child or parent. The reinstated benefit
24 shall include any one-time or annual increases received prior
25 to the date of termination, as well as any increases that
26 would otherwise have accrued from the date of termination to
27 the date of reinstatement. An eligible surviving spouse
28 whose expectation of receiving a survivors' benefit was lost
29 due to remarriage before attainment of age 50 shall also be
30 entitled to reinstatement under this subsection, but the
31 resulting survivors' benefit shall not begin to accrue sooner
32 than upon the surviving spouse's attainment of age 50.
33 The changes change made to this item (6) by Public Act
34 91-887 and this amendatory Act of the 92nd 91st General
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1 Assembly apply applies without regard to whether the deceased
2 member or annuitant was in service on or after the effective
3 date of either this amendatory Act of the 91st General
4 Assembly.
5 (7) The benefits payable to an eligible child shall
6 terminate when the eligible child marries, dies, or attains
7 age 18 (age 22 if a full-time student); except that benefits
8 payable to a dependent disabled eligible child shall
9 terminate only when the eligible child dies or ceases to be
10 disabled.
11 (Source: P.A. 90-448, eff. 8-16-97; 91-887, eff. 7-6-00.)
12 (40 ILCS 5/16-143.1) (from Ch. 108 1/2, par. 16-143.1)
13 Sec. 16-143.1. Increase in survivor benefits.
14 (a) Beginning January 1, 1990, each survivor's benefit
15 and each reversionary annuity payable under Section 16-136
16 shall be increased by 3% of the currently payable amount
17 thereof (1) on each January 1 occurring on or after the
18 commencement of the annuity if the deceased teacher died
19 while receiving a retirement or disability retirement
20 annuity, or (2) in other cases, on each January 1 occurring
21 on or after the first anniversary of the granting of the
22 benefit, without regard to whether the deceased teacher was
23 in service on or after the effective date of this amendatory
24 Act of 1991, but such increases shall not accrue for any
25 period prior to January 1, 1990.
26 (b) On January 1, 1981, any beneficiary who was
27 receiving a survivor's monthly benefit on or before January
28 1, 1971, shall have the benefit then being paid increased by
29 1% for each full year elapsed from the date the survivor's
30 benefit began. On January 1, 1982, any beneficiary who began
31 receiving a survivor's monthly benefit after January 1, 1971,
32 but before January 1, 1981 shall have the benefit then being
33 paid increased by 1% for each year elapsed from the date the
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1 survivor's benefit began.
2 On January 1, 1987, any beneficiary whose monthly
3 survivor's benefit began on or before January 1, 1977, shall
4 have the monthly survivor's benefit increased by $1 for each
5 full year which has elapsed since the date the survivor's
6 benefit began.
7 (c) On July 1, 2001, every recipient of a survivor's
8 annuity whose original annuity began before January 1, 1980
9 shall have the monthly survivor's annuity increased by
10 whichever of the following percentages is applicable:
11 5% if the original annuity began in 1979;
12 10% if the original annuity began in 1978;
13 14% if the original annuity began in 1977;
14 14% if the original annuity began in 1976;
15 18% if the original annuity began in 1975;
16 23% if the original annuity began in 1974;
17 32% if the original annuity began in 1973 or before.
18 In the case of the survivor of a deceased annuitant who
19 died while receiving a retirement annuity, "original annuity"
20 means the deceased annuitant's retirement annuity; in all
21 other cases, "original annuity" means the survivor's annuity.
22 The increase under this subsection shall be calculated as
23 a percentage of the amount of the survivor's annuity payable
24 on June 30, 2001, including any increases previously received
25 under this Article, and shall be included in the calculation
26 of increases granted thereafter under subsection (a).
27 (Source: P.A. 86-273; 86-1488.)
28 (40 ILCS 5/16-158) (from Ch. 108 1/2, par. 16-158)
29 Sec. 16-158. Contributions by State and other employing
30 units.
31 (a) The State shall make contributions to the System by
32 means of appropriations from the Common School Fund and other
33 State funds of amounts which, together with other employer
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1 contributions, employee contributions, investment income, and
2 other income, will be sufficient to meet the cost of
3 maintaining and administering the System on a 90% funded
4 basis in accordance with actuarial recommendations.
5 The Board shall determine the amount of State
6 contributions required for each fiscal year on the basis of
7 the actuarial tables and other assumptions adopted by the
8 Board and the recommendations of the actuary, using the
9 formulae formula in subsection (b-3) and subsection (b-4).
10 The minimum contribution to the System to be made by the
11 State for each fiscal year shall be the sum of the amount
12 determined under subsection (b-3) and the amount determined
13 under subsection (b-4).
14 (a-1) Annually, on or before November 15, the board
15 shall certify to the Governor the amount of the required
16 State contribution for the coming fiscal year. The
17 certification shall include a copy of the actuarial
18 recommendations upon which it is based.
19 (b) Through State fiscal year 1995, the State
20 contributions shall be paid to the System in accordance with
21 Section 18-7 of the School Code.
22 (b-1) Beginning in State fiscal year 1996, on the 15th
23 day of each month, or as soon thereafter as may be
24 practicable, the Board shall submit vouchers for payment of
25 State contributions to the System, in a total monthly amount
26 of one-twelfth of the required annual State contribution
27 certified under subsection (a-1). These vouchers shall be
28 paid by the State Comptroller and Treasurer by warrants drawn
29 on the funds appropriated to the System for that fiscal year.
30 If in any month the amount remaining unexpended from all
31 other appropriations to the System for the applicable fiscal
32 year (including the appropriations to the System under
33 Section 8.12 of the State Finance Act and Section 1 of the
34 State Pension Funds Continuing Appropriation Act) is less
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1 than the amount lawfully vouchered under this subsection, the
2 difference shall be paid from the Common School Fund under
3 the continuing appropriation authority provided in Section
4 1.1 of the State Pension Funds Continuing Appropriation Act.
5 (b-2) Allocations from the Common School Fund
6 apportioned to school districts not coming under this System
7 shall not be diminished or affected by the provisions of this
8 Article.
9 (b-3) For State fiscal years 2011 through 2045, the
10 minimum contribution to the System to be made by the State
11 for each fiscal year shall be an amount determined by the
12 System to be sufficient to bring the total assets of the
13 System up to 90% of the total actuarial liabilities of the
14 System (other than the liabilities described in subsection
15 (b-4) of this Section) by the end of State fiscal year 2045.
16 In making these determinations, the required State
17 contribution shall be calculated each year as a level
18 percentage of payroll over the years remaining to and
19 including fiscal year 2045 and shall be determined under the
20 projected unit credit actuarial cost method.
21 For State fiscal years 1996 through 2010, the State
22 contribution to the System, as a percentage of the applicable
23 employee payroll, shall be increased in equal annual
24 increments so that by State fiscal year 2011, the State is
25 contributing at the rate required under this Section; except
26 that in the following specified State fiscal years, the State
27 contribution to the System shall not be less than the
28 following indicated percentages of the applicable employee
29 payroll, even if the indicated percentage will produce a
30 State contribution in excess of the amount otherwise required
31 under this subsection and subsection (a), and notwithstanding
32 any contrary certification made under subsection (a-1) before
33 the effective date of this amendatory Act of 1998: 10.02% in
34 FY 1999; 10.77% in FY 2000; 11.47% in FY 2001; 12.16% in FY
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1 2002; 12.86% in FY 2003; 13.56% in FY 2004; 14.25% in FY
2 2005; 14.95% in FY 2006; 15.65% in FY 2007; 16.34% in FY
3 2008; 17.04% in FY 2009; and 17.74% in FY 2010.
4 Beginning in State fiscal year 2046, the minimum State
5 contribution for each fiscal year shall be the amount needed
6 to maintain the total assets of the System at 90% of the
7 total actuarial liabilities of the System.
8 (b-4) The cost of the one-time increases granted by this
9 amendatory Act of the 92nd General Assembly under subsection
10 (f) of Section 16-133.1 and subsection (c) of Section
11 16-143.1 shall be paid by the State on a level dollar basis
12 over a period of 10 years beginning July 1, 2003. These
13 contributions are in addition to, and shall not be included
14 in the calculation of, the State contribution required under
15 subsection (b-3).
16 (c) Payment of the required State contributions and of
17 all pensions, retirement annuities, death benefits, refunds,
18 and other benefits granted under or assumed by this System,
19 and all expenses in connection with the administration and
20 operation thereof, are obligations of the State.
21 If members are paid from special trust or federal funds
22 which are administered by the employing unit, whether school
23 district or other unit, the employing unit shall pay to the
24 System from such funds the full accruing retirement costs
25 based upon that service, as determined by the System.
26 Employer contributions, based on salary paid to members from
27 federal funds, may be forwarded by the distributing agency of
28 the State of Illinois to the System prior to allocation, in
29 an amount determined in accordance with guidelines
30 established by such agency and the System.
31 (d) Effective July 1, 1986, any employer of a teacher as
32 defined in paragraph (8) of Section 16-106 shall pay the
33 employer's normal cost of benefits based upon the teacher's
34 service, in addition to employee contributions, as determined
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1 by the System. Such employer contributions shall be
2 forwarded monthly in accordance with guidelines established
3 by the System.
4 However, with respect to benefits granted under Section
5 16-133.4 or 16-133.5 to a teacher as defined in paragraph (8)
6 of Section 16-106, the employer's contribution shall be 12%
7 (rather than 20%) of the member's highest annual salary rate
8 for each year of creditable service granted, and the employer
9 shall also pay the required employee contribution on behalf
10 of the teacher. For the purposes of Sections 16-133.4 and
11 16-133.5, a teacher as defined in paragraph (8) of Section
12 16-106 who is serving in that capacity while on leave of
13 absence from another employer under this Article shall not be
14 considered an employee of the employer from which the teacher
15 is on leave.
16 (e) Beginning July 1, 1998, every employer of a teacher
17 shall pay to the System an employer contribution computed as
18 follows:
19 (1) Beginning July 1, 1998 through June 30, 1999,
20 the employer contribution shall be equal to 0.3% of each
21 teacher's salary.
22 (2) Beginning July 1, 1999 and thereafter, the
23 employer contribution shall be equal to 0.58% of each
24 teacher's salary.
25 The school district or other employing unit may pay these
26 employer contributions out of any source of funding available
27 for that purpose and shall forward the contributions to the
28 System on the schedule established for the payment of member
29 contributions.
30 These employer contributions are intended to offset a
31 portion of the cost to the System of the increases in
32 retirement benefits resulting from this amendatory Act of
33 1998.
34 The additional 1% employee contribution required under
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1 Section 16-152 by this amendatory Act of 1998 is the
2 responsibility of the teacher and not the teacher's employer,
3 unless the employer agrees, through collective bargaining or
4 otherwise, to make the contribution on behalf of the teacher.
5 If an employer is required by a contract in effect on May
6 1, 1998 between the employer and an employee organization to
7 pay, on behalf of all its full-time employees covered by this
8 Article, all mandatory employee contributions required under
9 this Article, then the employer shall be excused from paying
10 the employer contribution required under this subsection (e)
11 for the balance of the term of that contract. The employer
12 and the employee organization shall jointly certify to the
13 System the existence of the contractual requirement, in such
14 form as the System may prescribe. This exclusion shall cease
15 upon the termination, extension, or renewal of the contract
16 at any time after May 1, 1998.
17 (Source: P.A. 90-582, eff. 5-27-98.)
18 (40 ILCS 5/17-114.4 new)
19 Sec. 17-114.4. Transfer to Metropolitan Pier and
20 Exposition Authority pension plan.
21 (a) Until January 1, 2002, any member of the management
22 committee of the Metropolitan Pier and Exposition Authority,
23 as designated by the chief executive officer of the
24 Authority, regardless of whether the member is in service
25 under this Article on or after the effective date of this
26 Section and notwithstanding Section 17-157, may apply to the
27 Board for transfer of all of his or her creditable service
28 accumulated under this Fund to the pension plan established
29 for employees and officers of the Metropolitan Pier and
30 Exposition Authority. The creditable service shall be
31 transferred in accordance with the terms of that plan and
32 shall be accompanied by a payment from this Fund to that
33 pension plan, consisting of:
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1 (1) the amounts accumulated to the credit of the
2 applicant for the service to be transferred, including
3 interest, on the books of the Fund on the date of
4 transfer, but excluding any additional or optional
5 credits, which shall be refunded to the applicant; plus
6 (2) employer contribution credits computed and
7 credited under this Article, including interest, on the
8 books of the Fund on the date the applicant terminated
9 service under the Fund.
10 Participation in this Fund as to the credits transferred
11 under this Section terminates on the date of transfer.
12 (b) For the purpose of transferring credit under this
13 Section, a person may reinstate credits and creditable
14 service terminated upon receipt of a refund, by paying to the
15 Fund, before January 1, 2002, the amount of the refund plus
16 regular interest from the date of the refund to the date of
17 repayment.
18 (40 ILCS 5/17-116.3)
19 Sec. 17-116.3. Early retirement incentives.
20 (a) A teacher who is covered by a collective bargaining
21 agreement shall not be eligible for the early retirement
22 incentives provided under this Section unless the collective
23 bargaining agent and the Board of Education have entered into
24 an agreement under which the agent agrees that any payment
25 for accumulated unused sick days to which the employee is
26 entitled upon withdrawal from service may be paid by the
27 Board of Education in installments over a period of up to 5
28 years, and a copy of this agreement has been filed with the
29 Board of the Fund.
30 To be eligible for the benefits provided in this Section,
31 a person must:
32 (1) be a member of this Fund who, on or after May
33 1, 1993, is (i) in active payroll status as a teacher, or
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1 (ii) on layoff status from such a position with a right
2 of re-employment or recall to service, or (iii) on leave
3 of absence from such a position, but only if the member
4 on leave has not been receiving a disability benefit
5 under this Article for a continuous period of 2 years or
6 more as of the date of application;
7 (2) have not previously received a retirement
8 pension under this Article;
9 (3) file with the Board and the Board of Education,
10 before August 15, 1993, a written application requesting
11 the benefits provided in this Section and a notice of
12 resignation from employment, which resignation must take
13 effect before September 1, 1993 unless the applicant's
14 retirement is delayed under subsection (e), (f), or (f-5)
15 of this Section;
16 (4) be eligible to receive a retirement pension
17 under this Article (for which purpose any age enhancement
18 or creditable service received under this Section may be
19 used) and elect to receive the retirement pension
20 beginning no earlier than June 1, 1993 and no later than
21 September 1, 1993 or the date established under
22 subsection (e), (f), or (f-5) of this Section, if
23 applicable;
24 (5) have attained age 50 (without the use of any
25 age enhancement or creditable service received under this
26 Section) by the effective date of the retirement pension;
27 (6) have at least 5 years of creditable service
28 under this Fund or any of the participating systems under
29 the Retirement Systems Reciprocal Act (without the use of
30 any creditable service received under this Section) by
31 the effective date of the retirement pension.
32 (b) An eligible person may establish up to 5 years of
33 creditable service under this Section. In addition, for each
34 period of creditable service established under this Section,
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1 a person's age at retirement shall be deemed to be increased
2 by an equal period.
3 The creditable service established under this Section may
4 be used for all purposes under this Article and the
5 Retirement Systems Reciprocal Act, except for the purposes of
6 Section 17-116.1, and the determination of average salary or
7 compensation under this or any other Article of this Code.
8 The age enhancement established under this Section may be
9 used for all purposes under this Article (including
10 calculation of a proportionate pension payable by this Fund
11 under the Retirement Systems Reciprocal Act), except for
12 purposes of the reversionary pension under Section 17-120,
13 and distributions required by federal law on account of age.
14 However, age enhancement established under this Section shall
15 not be used in determining benefits payable under other
16 Articles of this Code under the Retirement Systems Reciprocal
17 Act.
18 (c) For all creditable service established under this
19 Section, the employer must pay to the Fund an employer
20 contribution consisting of 12% of the member's highest annual
21 full-time rate of compensation for each year of creditable
22 service granted under this Section.
23 The employer contribution shall be paid to the Fund in
24 one of the following ways: (i) in a single sum at the time
25 of the member's retirement, (ii) in equal quarterly
26 installments over a period of 5 years from the date of
27 retirement, or (iii) subject to the approval of the Board of
28 the Fund, in unequal installments over a period of no more
29 than 5 years from the date of retirement, as provided in a
30 payment plan designed by the Fund to accommodate the needs of
31 the employer. The employer's failure to make the required
32 contributions in a timely manner shall not affect the payment
33 of the retirement pension.
34 For all creditable service established under this
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1 Section, the employee must pay to the Fund an employee
2 contribution consisting of 4% of the member's highest annual
3 salary rate used in the determination of the retirement
4 pension for each year of creditable service granted under
5 this Section. The employee contribution shall be deducted
6 from the retirement annuity in 24 monthly installments.
7 (d) An annuitant who has received any age enhancement or
8 creditable service under this Section and whose pension is
9 suspended or cancelled under Section 17-149 or 17-150 shall
10 thereby forfeit the age enhancement and creditable service.
11 The forfeiture of creditable service under this subsection
12 shall not entitle the employer to a refund of the employer
13 contribution paid under this Section, nor to forgiveness of
14 any part of that contribution that remains unpaid. The
15 forfeiture of creditable service under this subsection shall
16 not entitle the employee to a refund of the employee
17 contribution paid under this Section.
18 (e) If the number of employees of an employer that apply
19 for early retirement under this Section exceeds 30% of those
20 eligible, the employer may require that, for any or all of
21 the number of applicants in excess of that 30%, the starting
22 date of the retirement pension enhanced under this Section be
23 no earlier than June 1, 1994 and no later than September 1,
24 1994. The right to have the retirement pension begin before
25 June 1, 1994 shall be allocated among the applicants on the
26 basis of seniority in the service of that employer.
27 This delay applies only to persons who are applying for
28 early retirement incentives under this Section, and does not
29 prevent a person whose application for early retirement
30 incentives has been withdrawn from beginning to receive a
31 retirement pension on the earliest date upon which the person
32 is otherwise eligible under this Article.
33 (f) For a member who is notified after July 30, 1993,
34 but before November 29, 1993, that he or she will become a
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1 supernumerary or reserve teacher in the 1993-1994 school
2 year: (1) the August 15, 1993 application deadline in
3 subdivision (a)(3) of this Section is extended to December
4 14, 1993, (2) the September 1, 1993 deadline in subdivision
5 (a)(4) of this Section is extended to December 14, 1993, and
6 (3) the member shall not be included in the calculation of
7 the 30% under subsection (e) and is not subject to delay in
8 retirement under that subsection.
9 (f-5) For a member who is notified after January 1,
10 1994, but before March 1, 1994, that he or she will become a
11 reserve teacher in the 1993-1994 school year: (1) the August
12 15, 1993 application deadline in subdivision (a)(3) of this
13 Section is extended to April 1, 1994; (2) the September 1,
14 1993 deadline in subdivision (a)(4) of this Section is
15 extended to April 1, 1994; and (3) the member shall not be
16 included in the calculation of the 30% under subsection (e)
17 and is not subject to delay in retirement under that
18 subsection.
19 (g) A member who receives any early retirement incentive
20 under Section 17-116.4, 17-116.5 or 17-116.6 may not receive
21 any early retirement incentive under this Section.
22 (h) The version of this Section included in Public Act
23 88-85 is intended to and shall control over the version of
24 this Section included in Public Act 88-89, notwithstanding
25 Section 6 of the Statute on Statutes. All persons qualifying
26 for early retirement incentives under this Section shall be
27 subject to the limitations and restrictions provided in the
28 version of this Section included in Public Act 88-85, as
29 amended by Public Act 88-511.
30 (i) In addition to the benefits provided under the other
31 provisions of this Section, every person who receives early
32 retirement benefits under this Section is entitled to one
33 additional year of creditable service and a corresponding
34 year of additional age enhancement, for which no additional
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1 contribution is required. Every person who receives early
2 retirement benefits under this Section whose retirement
3 annuity has been calculated on the basis of a 4-year average
4 salary is also entitled to have the annuity recalculated on
5 the basis of the average salary for the 3 highest consecutive
6 years within the last 10 years of service.
7 The additional benefits provided by this subsection (i)
8 shall begin to accrue on the date the retirement annuity
9 began, notwithstanding Section 17-157. The Fund shall
10 recalculate all annuities originally calculated under this
11 Section to reflect the additional benefits provided under
12 this subsection and shall pay to the annuitant in a lump sum
13 the difference between the annuity payments paid before the
14 date of the recalculation and the recalculated amount of
15 those payments.
16 (Source: P.A. 88-85; 88-89; 88-511; 88-670, eff. 12-2-94.)
17 (40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
18 Sec. 17-119. Automatic annual increase in pension.
19 (a) Each teacher retiring on or after September 1, 1959,
20 is entitled to the annual increase in pension, defined
21 herein, while he is receiving a pension from the Fund.
22 1. The term "base pension" means a service
23 retirement or disability retirement pension in the amount
24 fixed and payable at the date of retirement of a teacher.
25 2. The annual increase in pension shall be at the
26 rate of 1 1/2% of base pension. This increase shall first
27 occur in January of the year next following the first
28 anniversary of retirement. At such time the Fund shall
29 pay the pro rata part of the increase for the period from
30 the first anniversary date to the date of the first
31 increase in pension. Beginning January 1, 1972, the rate
32 of annual increase in pension shall be 2% of the base
33 pension. Beginning January 1, 1979, the rate of annual
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1 increase in pension shall be 3% of the base pension.
2 Beginning January 1, 1990, all automatic annual increases
3 payable under this Section shall be calculated as a
4 percentage of the total pension payable at the time of
5 the increase, including all increases previously granted
6 under this Article, notwithstanding Section 17-157.
7 3. An increase in pension shall be granted only if
8 the retired teacher is age 60 or over. If the teacher
9 attains age 60 after retirement, the increase in pension
10 shall begin in January of the year following the 61st
11 birthday. At such time the Fund also shall pay the pro
12 rata part of the increase from the 61st birthday to the
13 date of first increase in pension.
14 (b) In addition to other increases which may be provided
15 by this Section, on January 1, 1981 any teacher who was
16 receiving a retirement pension on or before January 1, 1971
17 shall have his retirement pension then being paid increased
18 $1 per month for each year of creditable service. On January
19 1, 1982, any teacher whose retirement pension began on or
20 before January 1, 1977, shall have his retirement pension
21 then being paid increased $1 per month for each year of
22 creditable service.
23 On January 1, 1987, any teacher whose retirement pension
24 began on or before January 1, 1977, shall have the monthly
25 retirement pension increased by an amount equal to 8¢ per
26 year of creditable service times the number of years that
27 have elapsed since the retirement pension began.
28 (c) On July 1, 2001, every pensioner who began receiving
29 a retirement pension before January 1, 1980 shall have the
30 monthly retirement pension increased by whichever of the
31 following percentages is applicable:
32 5% if the annuity began in 1979;
33 10% if the annuity began in 1978;
34 14% if the annuity began in 1977;
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1 14% if the annuity began in 1976;
2 18% if the annuity began in 1975;
3 23% if the annuity began in 1974;
4 32% if the annuity began in 1973 or before.
5 The increase under this subsection shall be calculated as
6 a percentage of the amount of the retirement pension payable
7 on June 30, 2001, including any increases previously received
8 under this Article, and shall be included in the calculation
9 of increases granted thereafter under subsection (a).
10 Section 17-157 does not apply to the increase provided under
11 this subsection.
12 (Source: P.A. 90-566, eff. 1-2-98.)
13 (40 ILCS 5/17-119.2 new)
14 Sec. 17-119.2. Reduction of purchasing power; policy;
15 report; increase.
16 (a) The General Assembly finds and declares that:
17 (1) The purchasing power of a fixed annuity can be
18 eroded over time by the effects of inflation and
19 increases in the general cost of living.
20 (2) For a person whose income consists primarily of
21 a fixed annuity, the reduction in purchasing power
22 resulting from increases in the cost of living can become
23 catastrophic over time, transforming a once-comfortable
24 retirement into a time of poverty and need.
25 (3) The State of Illinois is concerned about the
26 effects that a significant reduction in purchasing power
27 can have on the quality of life of retired employees and
28 their survivors.
29 (4) The General Assembly has previously addressed
30 this concern by providing for automatic annual increases
31 in retirement and survivor's pensions under this Article.
32 Recognizing that these automatic annual increases, by
33 themselves, are not a complete answer in times of high
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1 inflation, the General Assembly has also, from time to
2 time, provided specific one-time increases in pensions
3 for certain categories of pensioners.
4 (b) It is the public policy of this State and the
5 intention of the General Assembly to protect pensioners
6 against significant decreases in the purchasing power of the
7 retirement and survivor's pensions granted under this
8 Article.
9 (c) The Fund shall regularly review the changes that
10 have occurred in the purchasing power of the retirement and
11 survivor's pensions being paid under this Article, and it
12 shall report to the General Assembly, the Governor, and the
13 Pension Laws Commission whenever it determines that the
14 original purchasing power of those pensions has been reduced
15 by 20% or more for any category or group of pensioners. The
16 Fund may include in the report its recommendations, if any,
17 for legislative action to address its findings.
18 (d) As used in this Section, the term "retirement and
19 survivor's pensions" means all service retirement pensions,
20 disability retirement pensions, survivor's pensions, and
21 children's pensions.
22 (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
23 Sec. 17-122. Survivor's and children's pensions - Amount.
24 (a) Upon the death of a teacher who has completed at
25 least 1 1/2 years of contributing service with either this
26 Fund or the State Universities Retirement System or the
27 Teachers' Retirement System of the State of Illinois,
28 provided his death occurred while (a) in active service
29 covered by the Fund or during his first 18 months of
30 continuous employment without a break in service under any
31 other participating system as defined in the Illinois
32 Retirement Systems Reciprocal Act except the State
33 Universities Retirement System and the Teachers' Retirement
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1 System of the State of Illinois, (b) on a creditable leave of
2 absence, (c) on a noncreditable leave of absence of no more
3 than one year, or (d) a pension was deferred or pending
4 provided the teacher had at least 10 years of validated
5 service credit, or upon the death of a pensioner otherwise
6 qualified for such benefit, the surviving spouse and
7 unmarried minor children of the deceased teacher under age 18
8 shall be entitled to pensions, under the conditions stated
9 hereinafter. Such survivor's and children's pensions shall
10 be based on the average of the 4 highest consecutive years of
11 salary in the last 10 years of service or on the average
12 salary for total service, if total service has been less than
13 4 years, according to the following percentages:
14 30% of average salary or 50% of the retirement
15 pension earned by the teacher, whichever is larger,
16 subject to the prescribed maximum monthly payment, for a
17 surviving spouse alone on attainment of age 50;
18 60% of average salary for a surviving spouse and
19 eligible minor children of the deceased teacher.
20 If no eligible spouse survives, or the surviving spouse
21 remarries, or the parent of the children of the deceased
22 member is otherwise ineligible for a survivor's pension, a
23 children's pension for eligible minor children under age 18
24 shall be paid to their parent or legal guardian for their
25 benefit according to the following percentages:
26 30% of average salary for one child;
27 60% of average salary for 2 or more children.
28 (b) On January 1, 1981, any survivor or child who was
29 receiving a survivor's or children's pension on or before
30 January 1, 1971, shall have his survivor's or children's
31 pension then being paid increased by 1% for each full year
32 which has elapsed from the date the pension began. On
33 January 1, 1982, any survivor or child whose pension began
34 after January 1, 1971, but before January 1, 1981, shall have
-258- LRB9207762EGfg
1 his survivor's or children's pension then being paid
2 increased 1% for each full year which has elapsed from the
3 date the pension began. On January 1, 1987, any survivor or
4 child whose pension began on or before January 1, 1977, shall
5 have the monthly survivor's or children's pension increased
6 by $1 for each full year which has elapsed since the pension
7 began.
8 (c) On July 1, 2001, every survivor or child who began
9 receiving a survivor's or children's pension before January
10 1, 1980 shall have the monthly pension increased by whichever
11 of the following percentages is applicable:
12 5% if the original annuity began in 1979;
13 10% if the original annuity began in 1978;
14 14% if the original annuity began in 1977;
15 14% if the original annuity began in 1976;
16 18% if the original annuity began in 1975;
17 23% if the original annuity began in 1974;
18 32% if the original annuity began in 1973 or before.
19 In the case of the survivor of a deceased annuitant who
20 died while receiving a retirement annuity, "original annuity"
21 means the deceased annuitant's retirement pension; in all
22 other cases, "original annuity" means the survivor's or
23 children's pension.
24 The increase under this subsection shall be calculated as
25 a percentage of the amount of the survivor's or children's
26 pension payable on June 30, 2001, including any increases
27 previously received under this Article, and shall be included
28 in the calculation of increases granted thereafter under
29 subsection (d). Section 17-157 does not apply to the
30 increase provided under this subsection.
31 (d) Beginning January 1, 1990, every survivor's and
32 children's pension shall be increased (1) on each January 1
33 occurring on or after the commencement of the pension if the
34 deceased teacher died while receiving a retirement pension,
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1 or (2) in other cases, on each January 1 occurring on or
2 after the first anniversary of the commencement of the
3 pension, by an amount equal to 3% of the current amount of
4 the pension, including all increases previously granted under
5 this Article, notwithstanding Section 17-157. Such increases
6 shall apply without regard to whether the deceased teacher
7 was in service on or after the effective date of this
8 amendatory Act of 1991, but shall not accrue for any period
9 prior to January 1, 1990.
10 (e) Subject to the minimum established below, the
11 maximum amount of pension for a surviving spouse alone or one
12 minor child shall be $400 per month, and the maximum combined
13 pensions for a surviving spouse and children of the deceased
14 teacher shall be $600 per month, with individual pensions
15 adjusted for all beneficiaries pro rata to conform with this
16 limitation. If proration is unnecessary the minimum
17 survivor's and children's pensions shall be $40 per month.
18 The minimum total survivor's and children's pension payable
19 upon the death of a contributor or annuitant which occurs
20 after December 31, 1986, shall be 50% of the earned
21 retirement pension of such contributor or annuitant,
22 calculated without early retirement discount in the case of
23 death in service.
24 On death after retirement, the total survivor's and
25 children's pensions shall not exceed the monthly retirement
26 or disability pension paid to the deceased retirant.
27 Survivor's and children's benefits described in this Section
28 shall apply to all service and disability pensioners eligible
29 for a pension as of July 1, 1981.
30 (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
31 (40 ILCS 5/18-128) (from Ch. 108 1/2, par. 18-128)
32 Sec. 18-128. Survivor's annuities; Conditions for
33 payment.
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1 (a) A survivor's annuity shall be payable upon the death
2 of a participant while in service after June 30, 1967 if the
3 participant had at least 1 1/2 years of service credit as a
4 judge, or upon death of an inactive participant who had
5 terminated service as a judge on or after June 30, 1967 with
6 at least 10 years of service credit, or upon the death of an
7 annuitant whose retirement becomes effective after June 30,
8 1967.
9 (b) The surviving spouse of a deceased participant or
10 annuitant is entitled to a survivor's annuity beginning at
11 the date of death if the surviving spouse (1) has been
12 married to the participant or annuitant for a continuous
13 period of at least one year immediately preceding the date of
14 death, and (2) has attained age 50, or, regardless of age,
15 has in his or her care an eligible child or children of the
16 decedent as provided under subsections (c) and (d) of this
17 Section. If the surviving spouse has no such child in his or
18 her care and has not attained age 50, the survivor's annuity
19 shall begin upon attainment of age 50. When all such
20 children of the deceased who are in the care of the surviving
21 spouse no longer qualify for benefits and the surviving
22 spouse is under 50 years of age, the surviving spouse's
23 annuity shall be suspended until he or she attains age 50.
24 (c) A child's annuity is payable for an unmarried child
25 of an annuitant or participant so long as the child is (i)
26 under age 18, (ii) under age 22 and a full time student, or
27 (iii) age 18 or over if dependent by reason of physical or
28 mental disability. Disability means inability to engage in
29 any substantial gainful activity by reason of any medically
30 determinable physical or mental impairment which can expected
31 to result in death or which has lasted or can be expected to
32 last for a continuous period of not less than 12 months.
33 (d) Adopted children shall have the same status as
34 natural children, but only if the proceedings for adoption
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1 were commenced at least 6 months prior to the death of the
2 annuitant or participant.
3 (e) Remarriage prior to attainment of age 50 that occurs
4 before the effective date of this amendatory Act of the 91st
5 General Assembly shall disqualify a surviving spouse for the
6 receipt of a survivor's annuity until July 6, 2000.
7 A surviving spouse whose survivor's annuity has been
8 terminated due to remarriage may apply for reinstatement of
9 that annuity. The reinstated annuity shall begin to accrue
10 on July 6, 2000, except that if, on July 6, 2000, the annuity
11 is payable to an eligible surviving child, payment of the
12 annuity to the surviving spouse shall not be reinstated until
13 the annuity is no longer payable to any eligible surviving
14 child. The reinstated annuity shall include any one-time or
15 annual increases received prior to the date of termination,
16 as well as any increases that would otherwise have accrued
17 from the date of termination to the date of reinstatement.
18 An eligible surviving spouse whose expectation of receiving a
19 survivor's annuity was lost due to remarriage before
20 attainment of age 50 shall also be entitled to reinstatement
21 under this subsection, but the resulting survivor's annuity
22 shall not begin to accrue sooner than upon the surviving
23 spouse's attainment of age 50.
24 The changes change made to this subsection by Public Act
25 91-887 and this amendatory Act of the 92nd 91st General
26 Assembly apply applies without regard to whether the deceased
27 judge was in service on or after the effective date of either
28 this amendatory Act of the 91st General Assembly.
29 (f) The changes made in survivor's annuity provisions by
30 Public Act 82-306 shall apply to the survivors of a deceased
31 participant or annuitant whose death occurs on or after
32 August 21, 1981 and whose service as a judge terminates on or
33 after July 1, 1967.
34 The provision of child's annuities for dependent students
-262- LRB9207762EGfg
1 under age 22 by this amendatory Act of 1991 shall apply to
2 all eligible students beginning January 1, 1992, without
3 regard to whether the deceased judge was in service on or
4 after the effective date of this amendatory Act.
5 (Source: P.A. 91-887, eff. 7-6-00.)
6 Section 90. The State Mandates Act is amended by adding
7 Section 8.25 as follows:
8 (30 ILCS 805/8.25 new)
9 Sec. 8.25. Exempt mandate. Notwithstanding Sections 6
10 and 8 of this Act, no reimbursement by the State is required
11 for the implementation of any mandate created by this
12 amendatory Act of the 92nd General Assembly.
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.
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1 INDEX
2 Statutes amended in order of appearance
3 40 ILCS 5/2-108 from Ch. 108 1/2, par. 2-108
4 40 ILCS 5/2-108.1 from Ch. 108 1/2, par. 2-108.1
5 40 ILCS 5/2-110 from Ch. 108 1/2, par. 2-110
6 40 ILCS 5/2-117 from Ch. 108 1/2, par. 2-117
7 40 ILCS 5/2-119.1 from Ch. 108 1/2, par. 2-119.1
8 40 ILCS 5/2-121 from Ch. 108 1/2, par. 2-121
9 40 ILCS 5/2-123 from Ch. 108 1/2, par. 2-123
10 40 ILCS 5/3-110.6 from Ch. 108 1/2, par. 3-110.6
11 40 ILCS 5/5-154 from Ch. 108 1/2, par. 5-154
12 40 ILCS 5/5-154.1 from Ch. 108 1/2, par. 5-154.1
13 40 ILCS 5/5-157 from Ch. 108 1/2, par. 5-157
14 40 ILCS 5/5-167.1 from Ch. 108 1/2, par. 5-167.1
15 40 ILCS 5/5-212 from Ch. 108 1/2, par. 5-212
16 40 ILCS 5/5-233.1 new
17 40 ILCS 5/5-236 from Ch. 108 1/2, par. 5-236
18 40 ILCS 5/6-140 from Ch. 108 1/2, par. 6-140
19 40 ILCS 5/7-132 from Ch. 108 1/2, par. 7-132
20 40 ILCS 5/7-139 from Ch. 108 1/2, par. 7-139
21 40 ILCS 5/7-139.7 from Ch. 108 1/2, par. 7-139.7
22 40 ILCS 5/7-139.8 from Ch. 108 1/2, par. 7-139.8
23 40 ILCS 5/8-110 from Ch. 108 1/2, par. 8-110
24 40 ILCS 5/8-113 from Ch. 108 1/2, par. 8-113
25 40 ILCS 5/8-120 from Ch. 108 1/2, par. 8-120
26 40 ILCS 5/8-150.1 from Ch. 108 1/2, par. 8-150.1
27 40 ILCS 5/8-158 from Ch. 108 1/2, par. 8-158
28 40 ILCS 5/8-161 from Ch. 108 1/2, par. 8-161
29 40 ILCS 5/8-167 from Ch. 108 1/2, par. 8-167
30 40 ILCS 5/8-168 from Ch. 108 1/2, par. 8-168
31 40 ILCS 5/8-171 from Ch. 108 1/2, par. 8-171
32 40 ILCS 5/8-174.1 from Ch. 108 1/2, par. 8-174.1
33 40 ILCS 5/8-226.7 new
34 40 ILCS 5/8-227 from Ch. 108 1/2, par. 8-227
-264- LRB9207762EGfg
1 40 ILCS 5/8-230.7
2 40 ILCS 5/8-230.8 new
3 40 ILCS 5/8-230.9 new
4 40 ILCS 5/8-230.10 new
5 40 ILCS 5/8-243.2 from Ch. 108 1/2, par. 8-243.2
6 40 ILCS 5/9-121.6 from Ch. 108 1/2, par. 9-121.6
7 40 ILCS 5/9-121.10 from Ch. 108 1/2, par. 9-121.10
8 40 ILCS 5/9-121.14 new
9 40 ILCS 5/9-121.15
10 40 ILCS 5/9-121.16 new
11 40 ILCS 5/9-134 from Ch. 108 1/2, par. 9-134
12 40 ILCS 5/9-146.1 from Ch. 108 1/2, par. 9-146.1
13 40 ILCS 5/9-163 from Ch. 108 1/2, par. 9-163
14 40 ILCS 5/9-179.1 from Ch. 108 1/2, par. 9-179.1
15 40 ILCS 5/9-185 from Ch. 108 1/2, par. 9-185
16 40 ILCS 5/9-186 from Ch. 108 1/2, par. 9-186
17 40 ILCS 5/9-187 from Ch. 108 1/2, par. 9-187
18 40 ILCS 5/9-219 from Ch. 108 1/2, par. 9-219
19 40 ILCS 5/11-125.8
20 40 ILCS 5/11-134 from Ch. 108 1/2, par. 11-134
21 40 ILCS 5/11-145.1 from Ch. 108 1/2, par. 11-145.1
22 40 ILCS 5/11-153 from Ch. 108 1/2, par. 11-153
23 40 ILCS 5/11-156 from Ch. 108 1/2, par. 11-156
24 40 ILCS 5/11-163 from Ch. 108 1/2, par. 11-163
25 40 ILCS 5/11-164 from Ch. 108 1/2, par. 11-164
26 40 ILCS 5/11-167 from Ch. 108 1/2, par. 11-167
27 40 ILCS 5/11-170.1 from Ch. 108 1/2, par. 11-170.1
28 40 ILCS 5/12-127.6 new
29 40 ILCS 5/12-127.7 new
30 40 ILCS 5/14-103.05 from Ch. 108 1/2, par. 14-103.05
31 40 ILCS 5/14-103.12 from Ch. 108 1/2, par. 14-103.12
32 40 ILCS 5/14-104 from Ch. 108 1/2, par. 14-104
33 40 ILCS 5/14-104.6 from Ch. 108 1/2, par. 14-104.6
34 40 ILCS 5/14-104.12 new
-265- LRB9207762EGfg
1 40 ILCS 5/14-104.13 new
2 40 ILCS 5/14-105.7
3 40 ILCS 5/14-105.8 new
4 40 ILCS 5/14-106 from Ch. 108 1/2, par. 14-106
5 40 ILCS 5/14-107 from Ch. 108 1/2, par. 14-107
6 40 ILCS 5/14-108 from Ch. 108 1/2, par. 14-108
7 40 ILCS 5/14-108.2c new
8 40 ILCS 5/14-110 from Ch. 108 1/2, par. 14-110
9 40 ILCS 5/14-114 from Ch. 108 1/2, par. 14-114
10 40 ILCS 5/14-114.1 new
11 40 ILCS 5/14-119 from Ch. 108 1/2, par. 14-119
12 40 ILCS 5/14-120 from Ch. 108 1/2, par. 14-120
13 40 ILCS 5/14-121 from Ch. 108 1/2, par. 14-121
14 40 ILCS 5/14-128 from Ch. 108 1/2, par. 14-128
15 40 ILCS 5/14-131 from Ch. 108 1/2, par. 14-131
16 40 ILCS 5/14-133 from Ch. 108 1/2, par. 14-133
17 40 ILCS 5/15-113.1 from Ch. 108 1/2, par. 15-113.1
18 40 ILCS 5/15-134.6 new
19 40 ILCS 5/15-136 from Ch. 108 1/2, par. 15-136
20 40 ILCS 5/15-136.3
21 40 ILCS 5/15-137.1 new
22 40 ILCS 5/15-145 from Ch. 108 1/2, par. 15-145
23 40 ILCS 5/15-148 from Ch. 108 1/2, par. 15-148
24 40 ILCS 5/15-155 from Ch. 108 1/2, par. 15-155
25 40 ILCS 5/15-165 from Ch. 108 1/2, par. 15-165
26 40 ILCS 5/16-106 from Ch. 108 1/2, par. 16-106
27 40 ILCS 5/16-129.1
28 40 ILCS 5/16-131.6 from Ch. 108 1/2, par. 16-131.6
29 40 ILCS 5/16-132 from Ch. 108 1/2, par. 16-132
30 40 ILCS 5/16-133 from Ch. 108 1/2, par. 16-133
31 40 ILCS 5/16-133.1 from Ch. 108 1/2, par. 16-133.1
32 40 ILCS 5/16-134.1 new
33 40 ILCS 5/16-143 from Ch. 108 1/2, par. 16-143
34 40 ILCS 5/16-143.1 from Ch. 108 1/2, par. 16-143.1
-266- LRB9207762EGfg
1 40 ILCS 5/16-158 from Ch. 108 1/2, par. 16-158
2 40 ILCS 5/17-114.4 new
3 40 ILCS 5/17-116.3
4 40 ILCS 5/17-119 from Ch. 108 1/2, par. 17-119
5 40 ILCS 5/17-119.2 new
6 40 ILCS 5/17-122 from Ch. 108 1/2, par. 17-122
7 40 ILCS 5/18-128 from Ch. 108 1/2, par. 18-128
8 30 ILCS 805/8.25 new