Public Act 90-0065 of the 90th General Assembly
Public Act 90-0065
HB0110 Enrolled LRB9000902EGfg
AN ACT in relation to public employees, amending named
Acts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Employees Group Insurance Act of
1971 is amended by changing Sections 3 and 10 as follows:
(5 ILCS 375/3) (from Ch. 127, par. 523)
(Text of Section before amendment by P.A. 89-507)
Sec. 3. Definitions. Unless the context otherwise
requires, the following words and phrases as used in this Act
shall have the following meanings. The Department may define
these and other words and phrases separately for the purpose
of implementing specific programs providing benefits under
this Act.
(a) "Administrative service organization" means any
person, firm or corporation experienced in the handling of
claims which is fully qualified, financially sound and
capable of meeting the service requirements of a contract of
administration executed with the Department.
(b) "Annuitant" means (1) an employee who retires, or
has retired, on or after January 1, 1966 on an immediate
annuity under the provisions of Articles 2, 14, 15 (including
an employee who has retired and is receiving a retirement
annuity under an optional program established under Section
15-158.2 and who would also be eligible for a retirement
annuity had that person been a participant in the State
University Retirement System), paragraphs (b) or (c) of
Section 16-106, or Article 18 of the Illinois Pension Code;
(2) any person who was receiving group insurance coverage
under this Act as of March 31, 1978 by reason of his status
as an annuitant, even though the annuity in relation to which
such coverage was provided is a proportional annuity based on
less than the minimum period of service required for a
retirement annuity in the system involved; (3) any person not
otherwise covered by this Act who has retired as a
participating member under Article 2 of the Illinois Pension
Code but is ineligible for the retirement annuity under
Section 2-119 of the Illinois Pension Code; (4) the spouse of
any person who is receiving a retirement annuity under
Article 18 of the Illinois Pension Code and who is covered
under a group health insurance program sponsored by a
governmental employer other than the State of Illinois and
who has irrevocably elected to waive his or her coverage
under this Act and to have his or her spouse considered as
the "annuitant" under this Act and not as a "dependent"; or
(5) an employee who retires, or has retired, from a qualified
position, as determined according to rules promulgated by the
Director, under a qualified local government or a qualified
rehabilitation facility or a qualified domestic violence
shelter or service. (For definition of "retired employee",
see (p) post).
(b-5) "New SERS annuitant" means a person who, on or
after January 1, 1998, becomes an annuitant, as defined in
subsection (b), by virtue of beginning to receive a
retirement annuity under Article 14 of the Illinois Pension
Code, and is eligible to participate in the basic program of
group health benefits provided for annuitants under this Act.
(b-6) "New SURS annuitant" means a person who, on or
after January 1, 1998, becomes an annuitant, as defined in
subsection (b), by virtue of beginning to receive a
retirement annuity under Article 15 of the Illinois Pension
Code, and is eligible to participate in the basic program of
group health benefits provided for annuitants under this Act.
(c) "Carrier" means (1) an insurance company, a
corporation organized under the Limited Health Service
Organization Act or the Voluntary Health Services Plan Act, a
partnership, or other nongovernmental organization, which is
authorized to do group life or group health insurance
business in Illinois, or (2) the State of Illinois as a
self-insurer.
(d) "Compensation" means salary or wages payable on a
regular payroll by the State Treasurer on a warrant of the
State Comptroller out of any State, trust or federal fund, or
by the Governor of the State through a disbursing officer of
the State out of a trust or out of federal funds, or by any
Department out of State, trust, federal or other funds held
by the State Treasurer or the Department, to any person for
personal services currently performed, and ordinary or
accidental disability benefits under Articles 2, 14, 15
(including ordinary or accidental disability benefits under
an optional program established under Section 15-158.2),
paragraphs (b) or (c) of Section 16-106, or Article 18 of the
Illinois Pension Code, for disability incurred after January
1, 1966, or benefits payable under the Workers' Compensation
or Occupational Diseases Act or benefits payable under a sick
pay plan established in accordance with Section 36 of the
State Finance Act. "Compensation" also means salary or wages
paid to an employee of any qualified local government or
qualified rehabilitation facility or a qualified domestic
violence shelter or service.
(e) "Commission" means the State Employees Group
Insurance Advisory Commission authorized by this Act.
Commencing July 1, 1984, "Commission" as used in this Act
means the Illinois Economic and Fiscal Commission as
established by the Legislative Commission Reorganization Act
of 1984.
(f) "Contributory", when referred to as contributory
coverage, shall mean optional coverages or benefits elected
by the member toward the cost of which such member makes
contribution, or which are funded in whole or in part through
the acceptance of a reduction in earnings or the foregoing of
an increase in earnings by an employee, as distinguished from
noncontributory coverage or benefits which are paid entirely
by the State of Illinois without reduction of the member's
salary.
(g) "Department" means any department, institution,
board, commission, officer, court or any agency of the State
government receiving appropriations and having power to
certify payrolls to the Comptroller authorizing payments of
salary and wages against such appropriations as are made by
the General Assembly from any State fund, or against trust
funds held by the State Treasurer and includes boards of
trustees of the retirement systems created by Articles 2, 14,
15, 16 and 18 of the Illinois Pension Code. "Department"
also includes the Illinois Comprehensive Health Insurance
Board and the Illinois Rural Bond Bank.
(h) "Dependent", when the term is used in the context of
the health and life plan, means a member's spouse and any
unmarried child (1) from birth to age 19 including an adopted
child, a child who lives with the member from the time of the
filing of a petition for adoption until entry of an order of
adoption, a stepchild or recognized child who lives with the
member in a parent-child relationship, or a child who lives
with the member if such member is a court appointed guardian
of the child, or (2) age 19 to 23 enrolled as a full-time
student in any accredited school, financially dependent upon
the member, and eligible as a dependent for Illinois State
income tax purposes, or (3) age 19 or over who is mentally or
physically handicapped as defined in the Illinois Insurance
Code. For the health plan only, the term "dependent" also
includes any person enrolled prior to the effective date of
this Section who is dependent upon the member to the extent
that the member may claim such person as a dependent for
Illinois State income tax deduction purposes; no other such
person may be enrolled.
(i) "Director" means the Director of the Illinois
Department of Central Management Services.
(j) "Eligibility period" means the period of time a
member has to elect enrollment in programs or to select
benefits without regard to age, sex or health.
(k) "Employee" means and includes each officer or
employee in the service of a department who (1) receives his
compensation for service rendered to the department on a
warrant issued pursuant to a payroll certified by a
department or on a warrant or check issued and drawn by a
department upon a trust, federal or other fund or on a
warrant issued pursuant to a payroll certified by an elected
or duly appointed officer of the State or who receives
payment of the performance of personal services on a warrant
issued pursuant to a payroll certified by a Department and
drawn by the Comptroller upon the State Treasurer against
appropriations made by the General Assembly from any fund or
against trust funds held by the State Treasurer, and (2) is
employed full-time or part-time in a position normally
requiring actual performance of duty during not less than 1/2
of a normal work period, as established by the Director in
cooperation with each department, except that persons elected
by popular vote will be considered employees during the
entire term for which they are elected regardless of hours
devoted to the service of the State, and (3) except that
"employee" does not include any person who is not eligible by
reason of such person's employment to participate in one of
the State retirement systems under Articles 2, 14, 15 (either
the regular Article 15 system or an optional program
established under Section 15-158.2) or 18, or under paragraph
(b) or (c) of Section 16-106, of the Illinois Pension Code,
but such term does include persons who are employed during
the 6 month qualifying period under Article 14 of the
Illinois Pension Code. Such term also includes any person
who (1) after January 1, 1966, is receiving ordinary or
accidental disability benefits under Articles 2, 14, 15
(including ordinary or accidental disability benefits under
an optional program established under Section 15-158.2),
paragraphs (b) or (c) of Section 16-106, or Article 18 of the
Illinois Pension Code, for disability incurred after January
1, 1966, (2) receives total permanent or total temporary
disability under the Workers' Compensation Act or
Occupational Disease Act as a result of injuries sustained or
illness contracted in the course of employment with the State
of Illinois, or (3) is not otherwise covered under this Act
and has retired as a participating member under Article 2 of
the Illinois Pension Code but is ineligible for the
retirement annuity under Section 2-119 of the Illinois
Pension Code. However, a person who satisfies the criteria
of the foregoing definition of "employee" except that such
person is made ineligible to participate in the State
Universities Retirement System by clause (4) of subsection
(a) the first paragraph of Section 15-107 of the Illinois
Pension Code is also an "employee" for the purposes of this
Act. "Employee" also includes any person receiving or
eligible for benefits under a sick pay plan established in
accordance with Section 36 of the State Finance Act.
"Employee" also includes each officer or employee in the
service of a qualified local government, including persons
appointed as trustees of sanitary districts regardless of
hours devoted to the service of the sanitary district, and
each employee in the service of a qualified rehabilitation
facility and each full-time employee in the service of a
qualified domestic violence shelter or service, as determined
according to rules promulgated by the Director.
(l) "Member" means an employee, annuitant, retired
employee or survivor.
(m) "Optional coverages or benefits" means those
coverages or benefits available to the member on his or her
voluntary election, and at his or her own expense.
(n) "Program" means the group life insurance, health
benefits and other employee benefits designed and contracted
for by the Director under this Act.
(o) "Health plan" means a self-insured health insurance
program offered by the State of Illinois for the purposes of
benefiting employees by means of providing, among others,
wellness programs, utilization reviews, second opinions and
medical fee reviews, as well as for paying for hospital and
medical care up to the maximum coverage provided by the plan,
to its members and their dependents.
(p) "Retired employee" means any person who would be an
annuitant as that term is defined herein but for the fact
that such person retired prior to January 1, 1966. Such term
also includes any person formerly employed by the University
of Illinois in the Cooperative Extension Service who would be
an annuitant but for the fact that such person was made
ineligible to participate in the State Universities
Retirement System by clause (4) of subsection (a) the first
paragraph of Section 15-107 of the Illinois Pension Code.
(p-6) "New SURS retired employee" means a person who, on
or after January 1, 1998, becomes a retired employee, as
defined in subsection (p), by virtue of being a person
formerly employed by the University of Illinois in the
Cooperative Extension Service who would be an annuitant but
for the fact that he or she was made ineligible to
participate in the State Universities Retirement System by
clause (4) of subsection (a) of Section 15-107 of the
Illinois Pension Code, and who is eligible to participate in
the basic program of group health benefits provided for
retired employees under this Act.
(q) "Survivor" means a person receiving an annuity as a
survivor of an employee or of an annuitant. "Survivor" also
includes: (1) the surviving dependent of a person who
satisfies the definition of "employee" except that such
person is made ineligible to participate in the State
Universities Retirement System by clause (4) of subsection
(a) the first paragraph of Section 15-107 of the Illinois
Pension Code; and (2) the surviving dependent of any person
formerly employed by the University of Illinois in the
Cooperative Extension Service who would be an annuitant
except for the fact that such person was made ineligible to
participate in the State Universities Retirement System by
clause (4) of subsection (a) the first paragraph of Section
15-107 of the Illinois Pension Code.
(q-5) "New SERS survivor" means a survivor, as defined
in subsection (q), whose annuity is paid under Article 14 of
the Illinois Pension Code and is based on the death of (i) an
employee whose death occurs on or after January 1, 1998, or
(ii) a new SERS annuitant as defined in subsection (b-5).
(q-6) "New SURS survivor" means a survivor, as defined
in subsection (q), whose annuity is paid under Article 15 of
the Illinois Pension Code and is based on the death of (i) an
employee whose death occurs on or after January 1, 1998, (ii)
a new SURS annuitant as defined in subsection (b-6), or (iii)
a new SURS retired employee as defined in subsection (p-6).
(r) "Medical services" means the services provided
within the scope of their licenses by practitioners in all
categories licensed under the Medical Practice Act of 1987.
(s) "Unit of local government" means any county,
municipality, township, school district, special district or
other unit, designated as a unit of local government by law,
which exercises limited governmental powers or powers in
respect to limited governmental subjects, any not-for-profit
association with a membership that primarily includes
townships and township officials, that has duties that
include provision of research service, dissemination of
information, and other acts for the purpose of improving
township government, and that is funded wholly or partly in
accordance with Section 85-15 of the Township Code; any
not-for-profit corporation or association, with a membership
consisting primarily of municipalities, that operates its own
utility system, and provides research, training,
dissemination of information, or other acts to promote
cooperation between and among municipalities that provide
utility services and for the advancement of the goals and
purposes of its membership; and the Illinois Association of
Park Districts. "Qualified local government" means a unit of
local government approved by the Director and participating
in a program created under subsection (i) of Section 10 of
this Act.
(t) "Qualified rehabilitation facility" means any
not-for-profit organization that is accredited by the
Commission on Accreditation of Rehabilitation Facilities or
certified by the Department of Mental Health and
Developmental Disabilities to provide services to persons
with disabilities and which receives funds from the State of
Illinois for providing those services, approved by the
Director and participating in a program created under
subsection (j) of Section 10 of this Act.
(u) "Qualified domestic violence shelter or service"
means any Illinois domestic violence shelter or service and
its administrative offices funded by the Illinois Department
of Public Aid, approved by the Director and participating in
a program created under subsection (k) of Section 10.
(v) "TRS benefit recipient" means a person who:
(1) is not a "member" as defined in this Section;
and
(2) is receiving a monthly benefit or retirement
annuity under Article 16 of the Illinois Pension Code;
and
(3) either (i) has at least 8 years of creditable
service under Article 16 of the Illinois Pension Code, or
(ii) was enrolled in the health insurance program offered
under that Article on January 1, 1996, or (iii) is the
survivor of a benefit recipient who had at least 8 years
of creditable service under Article 16 of the Illinois
Pension Code or was enrolled in the health insurance
program offered under that Article on the effective date
of this amendatory Act of 1995, or (iv) is a recipient or
survivor of a recipient of a disability benefit under
Article 16 of the Illinois Pension Code.
(w) "TRS dependent beneficiary" means a person who:
(1) is not a "member" or "dependent" as defined in
this Section; and
(2) is a TRS benefit recipient's: (A) spouse, (B)
dependent parent who is receiving at least half of his or
her support from the TRS benefit recipient, or (C)
unmarried natural or adopted child who is (i) under age
19, or (ii) enrolled as a full-time student in an
accredited school, financially dependent upon the TRS
benefit recipient, eligible as a dependent for Illinois
State income tax purposes, and either is under age 24 or
was, on January 1, 1996, participating as a dependent
beneficiary in the health insurance program offered under
Article 16 of the Illinois Pension Code, or (iii) age 19
or over who is mentally or physically handicapped as
defined in the Illinois Insurance Code.
(x) "Military leave with pay and benefits" refers to
individuals in basic training for reserves, special/advanced
training, annual training, emergency call up, or activation
by the President of the United States with approved pay and
benefits.
(y) "Military leave without pay and benefits" refers to
individuals who enlist for active duty in a regular component
of the U.S. Armed Forces or other duty not specified or
authorized under military leave with pay and benefits.
(Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-628,
eff. 8-9-96; revised 8-23-96.)
(Text of Section after amendment by P.A. 89-507)
Sec. 3. Definitions. Unless the context otherwise
requires, the following words and phrases as used in this Act
shall have the following meanings. The Department may define
these and other words and phrases separately for the purpose
of implementing specific programs providing benefits under
this Act.
(a) "Administrative service organization" means any
person, firm or corporation experienced in the handling of
claims which is fully qualified, financially sound and
capable of meeting the service requirements of a contract of
administration executed with the Department.
(b) "Annuitant" means (1) an employee who retires, or
has retired, on or after January 1, 1966 on an immediate
annuity under the provisions of Articles 2, 14, 15 (including
an employee who has retired and is receiving a retirement
annuity under an optional program established under Section
15-158.2 and who would also be eligible for a retirement
annuity had that person been a participant in the State
University Retirement System), paragraphs (b) or (c) of
Section 16-106, or Article 18 of the Illinois Pension Code;
(2) any person who was receiving group insurance coverage
under this Act as of March 31, 1978 by reason of his status
as an annuitant, even though the annuity in relation to which
such coverage was provided is a proportional annuity based on
less than the minimum period of service required for a
retirement annuity in the system involved; (3) any person not
otherwise covered by this Act who has retired as a
participating member under Article 2 of the Illinois Pension
Code but is ineligible for the retirement annuity under
Section 2-119 of the Illinois Pension Code; (4) the spouse of
any person who is receiving a retirement annuity under
Article 18 of the Illinois Pension Code and who is covered
under a group health insurance program sponsored by a
governmental employer other than the State of Illinois and
who has irrevocably elected to waive his or her coverage
under this Act and to have his or her spouse considered as
the "annuitant" under this Act and not as a "dependent"; or
(5) an employee who retires, or has retired, from a qualified
position, as determined according to rules promulgated by the
Director, under a qualified local government or a qualified
rehabilitation facility or a qualified domestic violence
shelter or service. (For definition of "retired employee",
see (p) post).
(b-5) "New SERS annuitant" means a person who, on or
after January 1, 1998, becomes an annuitant, as defined in
subsection (b), by virtue of beginning to receive a
retirement annuity under Article 14 of the Illinois Pension
Code, and is eligible to participate in the basic program of
group health benefits provided for annuitants under this Act.
(b-6) "New SURS annuitant" means a person who, on or
after January 1, 1998, becomes an annuitant, as defined in
subsection (b), by virtue of beginning to receive a
retirement annuity under Article 15 of the Illinois Pension
Code, and is eligible to participate in the basic program of
group health benefits provided for annuitants under this Act.
(c) "Carrier" means (1) an insurance company, a
corporation organized under the Limited Health Service
Organization Act or the Voluntary Health Services Plan Act, a
partnership, or other nongovernmental organization, which is
authorized to do group life or group health insurance
business in Illinois, or (2) the State of Illinois as a
self-insurer.
(d) "Compensation" means salary or wages payable on a
regular payroll by the State Treasurer on a warrant of the
State Comptroller out of any State, trust or federal fund, or
by the Governor of the State through a disbursing officer of
the State out of a trust or out of federal funds, or by any
Department out of State, trust, federal or other funds held
by the State Treasurer or the Department, to any person for
personal services currently performed, and ordinary or
accidental disability benefits under Articles 2, 14, 15
(including ordinary or accidental disability benefits under
an optional program established under Section 15-158.2),
paragraphs (b) or (c) of Section 16-106, or Article 18 of the
Illinois Pension Code, for disability incurred after January
1, 1966, or benefits payable under the Workers' Compensation
or Occupational Diseases Act or benefits payable under a sick
pay plan established in accordance with Section 36 of the
State Finance Act. "Compensation" also means salary or wages
paid to an employee of any qualified local government or
qualified rehabilitation facility or a qualified domestic
violence shelter or service.
(e) "Commission" means the State Employees Group
Insurance Advisory Commission authorized by this Act.
Commencing July 1, 1984, "Commission" as used in this Act
means the Illinois Economic and Fiscal Commission as
established by the Legislative Commission Reorganization Act
of 1984.
(f) "Contributory", when referred to as contributory
coverage, shall mean optional coverages or benefits elected
by the member toward the cost of which such member makes
contribution, or which are funded in whole or in part through
the acceptance of a reduction in earnings or the foregoing of
an increase in earnings by an employee, as distinguished from
noncontributory coverage or benefits which are paid entirely
by the State of Illinois without reduction of the member's
salary.
(g) "Department" means any department, institution,
board, commission, officer, court or any agency of the State
government receiving appropriations and having power to
certify payrolls to the Comptroller authorizing payments of
salary and wages against such appropriations as are made by
the General Assembly from any State fund, or against trust
funds held by the State Treasurer and includes boards of
trustees of the retirement systems created by Articles 2, 14,
15, 16 and 18 of the Illinois Pension Code. "Department"
also includes the Illinois Comprehensive Health Insurance
Board and the Illinois Rural Bond Bank.
(h) "Dependent", when the term is used in the context of
the health and life plan, means a member's spouse and any
unmarried child (1) from birth to age 19 including an adopted
child, a child who lives with the member from the time of the
filing of a petition for adoption until entry of an order of
adoption, a stepchild or recognized child who lives with the
member in a parent-child relationship, or a child who lives
with the member if such member is a court appointed guardian
of the child, or (2) age 19 to 23 enrolled as a full-time
student in any accredited school, financially dependent upon
the member, and eligible as a dependent for Illinois State
income tax purposes, or (3) age 19 or over who is mentally or
physically handicapped as defined in the Illinois Insurance
Code. For the health plan only, the term "dependent" also
includes any person enrolled prior to the effective date of
this Section who is dependent upon the member to the extent
that the member may claim such person as a dependent for
Illinois State income tax deduction purposes; no other such
person may be enrolled.
(i) "Director" means the Director of the Illinois
Department of Central Management Services.
(j) "Eligibility period" means the period of time a
member has to elect enrollment in programs or to select
benefits without regard to age, sex or health.
(k) "Employee" means and includes each officer or
employee in the service of a department who (1) receives his
compensation for service rendered to the department on a
warrant issued pursuant to a payroll certified by a
department or on a warrant or check issued and drawn by a
department upon a trust, federal or other fund or on a
warrant issued pursuant to a payroll certified by an elected
or duly appointed officer of the State or who receives
payment of the performance of personal services on a warrant
issued pursuant to a payroll certified by a Department and
drawn by the Comptroller upon the State Treasurer against
appropriations made by the General Assembly from any fund or
against trust funds held by the State Treasurer, and (2) is
employed full-time or part-time in a position normally
requiring actual performance of duty during not less than 1/2
of a normal work period, as established by the Director in
cooperation with each department, except that persons elected
by popular vote will be considered employees during the
entire term for which they are elected regardless of hours
devoted to the service of the State, and (3) except that
"employee" does not include any person who is not eligible by
reason of such person's employment to participate in one of
the State retirement systems under Articles 2, 14, 15 (either
the regular Article 15 system or an optional program
established under Section 15-158.2) or 18, or under paragraph
(b) or (c) of Section 16-106, of the Illinois Pension Code,
but such term does include persons who are employed during
the 6 month qualifying period under Article 14 of the
Illinois Pension Code. Such term also includes any person
who (1) after January 1, 1966, is receiving ordinary or
accidental disability benefits under Articles 2, 14, 15
(including ordinary or accidental disability benefits under
an optional program established under Section 15-158.2),
paragraphs (b) or (c) of Section 16-106, or Article 18 of the
Illinois Pension Code, for disability incurred after January
1, 1966, (2) receives total permanent or total temporary
disability under the Workers' Compensation Act or
Occupational Disease Act as a result of injuries sustained or
illness contracted in the course of employment with the State
of Illinois, or (3) is not otherwise covered under this Act
and has retired as a participating member under Article 2 of
the Illinois Pension Code but is ineligible for the
retirement annuity under Section 2-119 of the Illinois
Pension Code. However, a person who satisfies the criteria
of the foregoing definition of "employee" except that such
person is made ineligible to participate in the State
Universities Retirement System by clause (4) of subsection
(a) the first paragraph of Section 15-107 of the Illinois
Pension Code is also an "employee" for the purposes of this
Act. "Employee" also includes any person receiving or
eligible for benefits under a sick pay plan established in
accordance with Section 36 of the State Finance Act.
"Employee" also includes each officer or employee in the
service of a qualified local government, including persons
appointed as trustees of sanitary districts regardless of
hours devoted to the service of the sanitary district, and
each employee in the service of a qualified rehabilitation
facility and each full-time employee in the service of a
qualified domestic violence shelter or service, as determined
according to rules promulgated by the Director.
(l) "Member" means an employee, annuitant, retired
employee or survivor.
(m) "Optional coverages or benefits" means those
coverages or benefits available to the member on his or her
voluntary election, and at his or her own expense.
(n) "Program" means the group life insurance, health
benefits and other employee benefits designed and contracted
for by the Director under this Act.
(o) "Health plan" means a self-insured health insurance
program offered by the State of Illinois for the purposes of
benefiting employees by means of providing, among others,
wellness programs, utilization reviews, second opinions and
medical fee reviews, as well as for paying for hospital and
medical care up to the maximum coverage provided by the plan,
to its members and their dependents.
(p) "Retired employee" means any person who would be an
annuitant as that term is defined herein but for the fact
that such person retired prior to January 1, 1966. Such term
also includes any person formerly employed by the University
of Illinois in the Cooperative Extension Service who would be
an annuitant but for the fact that such person was made
ineligible to participate in the State Universities
Retirement System by clause (4) of subsection (a) the first
paragraph of Section 15-107 of the Illinois Pension Code.
(p-6) "New SURS retired employee" means a person who, on
or after January 1, 1998, becomes a retired employee, as
defined in subsection (p), by virtue of being a person
formerly employed by the University of Illinois in the
Cooperative Extension Service who would be an annuitant but
for the fact that he or she was made ineligible to
participate in the State Universities Retirement System by
clause (4) of subsection (a) of Section 15-107 of the
Illinois Pension Code, and who is eligible to participate in
the basic program of group health benefits provided for
retired employees under this Act.
(q) "Survivor" means a person receiving an annuity as a
survivor of an employee or of an annuitant. "Survivor" also
includes: (1) the surviving dependent of a person who
satisfies the definition of "employee" except that such
person is made ineligible to participate in the State
Universities Retirement System by clause (4) of subsection
(a) the first paragraph of Section 15-107 of the Illinois
Pension Code; and (2) the surviving dependent of any person
formerly employed by the University of Illinois in the
Cooperative Extension Service who would be an annuitant
except for the fact that such person was made ineligible to
participate in the State Universities Retirement System by
clause (4) of subsection (a) the first paragraph of Section
15-107 of the Illinois Pension Code.
(q-5) "New SERS survivor" means a survivor, as defined
in subsection (q), whose annuity is paid under Article 14 of
the Illinois Pension Code and is based on the death of (i) an
employee whose death occurs on or after January 1, 1998, or
(ii) a new SERS annuitant as defined in subsection (b-5).
(q-6) "New SURS survivor" means a survivor, as defined
in subsection (q), whose annuity is paid under Article 15 of
the Illinois Pension Code and is based on the death of (i) an
employee whose death occurs on or after January 1, 1998, (ii)
a new SURS annuitant as defined in subsection (b-6), or (iii)
a new SURS retired employee as defined in subsection (p-6).
(r) "Medical services" means the services provided
within the scope of their licenses by practitioners in all
categories licensed under the Medical Practice Act of 1987.
(s) "Unit of local government" means any county,
municipality, township, school district, special district or
other unit, designated as a unit of local government by law,
which exercises limited governmental powers or powers in
respect to limited governmental subjects, any not-for-profit
association with a membership that primarily includes
townships and township officials, that has duties that
include provision of research service, dissemination of
information, and other acts for the purpose of improving
township government, and that is funded wholly or partly in
accordance with Section 85-15 of the Township Code; any
not-for-profit corporation or association, with a membership
consisting primarily of municipalities, that operates its own
utility system, and provides research, training,
dissemination of information, or other acts to promote
cooperation between and among municipalities that provide
utility services and for the advancement of the goals and
purposes of its membership; and the Illinois Association of
Park Districts. "Qualified local government" means a unit of
local government approved by the Director and participating
in a program created under subsection (i) of Section 10 of
this Act.
(t) "Qualified rehabilitation facility" means any
not-for-profit organization that is accredited by the
Commission on Accreditation of Rehabilitation Facilities or
certified by the Department of Human Services (as successor
to the Department of Mental Health and Developmental
Disabilities) to provide services to persons with
disabilities and which receives funds from the State of
Illinois for providing those services, approved by the
Director and participating in a program created under
subsection (j) of Section 10 of this Act.
(u) "Qualified domestic violence shelter or service"
means any Illinois domestic violence shelter or service and
its administrative offices funded by the Department of Human
Services (as successor to the Illinois Department of Public
Aid), approved by the Director and participating in a program
created under subsection (k) of Section 10.
(v) "TRS benefit recipient" means a person who:
(1) is not a "member" as defined in this Section;
and
(2) is receiving a monthly benefit or retirement
annuity under Article 16 of the Illinois Pension Code;
and
(3) either (i) has at least 8 years of creditable
service under Article 16 of the Illinois Pension Code, or
(ii) was enrolled in the health insurance program offered
under that Article on January 1, 1996, or (iii) is the
survivor of a benefit recipient who had at least 8 years
of creditable service under Article 16 of the Illinois
Pension Code or was enrolled in the health insurance
program offered under that Article on the effective date
of this amendatory Act of 1995, or (iv) is a recipient or
survivor of a recipient of a disability benefit under
Article 16 of the Illinois Pension Code.
(w) "TRS dependent beneficiary" means a person who:
(1) is not a "member" or "dependent" as defined in
this Section; and
(2) is a TRS benefit recipient's: (A) spouse, (B)
dependent parent who is receiving at least half of his or
her support from the TRS benefit recipient, or (C)
unmarried natural or adopted child who is (i) under age
19, or (ii) enrolled as a full-time student in an
accredited school, financially dependent upon the TRS
benefit recipient, eligible as a dependent for Illinois
State income tax purposes, and either is under age 24 or
was, on January 1, 1996, participating as a dependent
beneficiary in the health insurance program offered under
Article 16 of the Illinois Pension Code, or (iii) age 19
or over who is mentally or physically handicapped as
defined in the Illinois Insurance Code.
(x) "Military leave with pay and benefits" refers to
individuals in basic training for reserves, special/advanced
training, annual training, emergency call up, or activation
by the President of the United States with approved pay and
benefits.
(y) "Military leave without pay and benefits" refers to
individuals who enlist for active duty in a regular component
of the U.S. Armed Forces or other duty not specified or
authorized under military leave with pay and benefits.
(Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-507,
eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)
(5 ILCS 375/10) (from Ch. 127, par. 530)
Sec. 10. Payments by State; premiums.
(a) The State shall pay the cost of basic
non-contributory group life insurance and, subject to member
paid contributions set by the Department or required by this
Section, the basic program of group health benefits on each
eligible member, except a member, not otherwise covered by
this Act, who has retired as a participating member under
Article 2 of the Illinois Pension Code but is ineligible for
the retirement annuity under Section 2-119 of the Illinois
Pension Code, and part of each eligible member's and retired
member's premiums for health insurance coverage for enrolled
dependents as provided by Section 9. The State shall pay the
cost of the basic program of group health benefits only after
benefits are reduced by the amount of benefits covered by
Medicare for all retired members and retired dependents aged
65 years or older who are entitled to benefits under Social
Security or the Railroad Retirement system or who had
sufficient Medicare-covered government employment except that
such reduction in benefits shall apply only to those retired
members or retired dependents who (1) first become eligible
for such Medicare coverage on or after July 1, 1992; or (2)
remain eligible for, but no longer receive Medicare coverage
which they had been receiving on or after July 1, 1992. The
Department may determine the aggregate level of the State's
contribution on the basis of actual cost of medical services
adjusted for age, sex or geographic or other demographic
characteristics which affect the costs of such programs.
(a-1) Beginning January 1, 1998, for each person who
becomes a new SERS annuitant and participates in the basic
program of group health benefits, the State shall contribute
toward the cost of the annuitant's coverage under the basic
program of group health benefits an amount equal to 5% of
that cost for each full year of creditable service upon which
the annuitant's retirement annuity is based, up to a maximum
of 100% for an annuitant with 20 or more years of creditable
service. The remainder of the cost of a new SERS annuitant's
coverage under the basic program of group health benefits
shall be the responsibility of the annuitant.
(a-2) Beginning January 1, 1998, for each person who
becomes a new SERS survivor and participates in the basic
program of group health benefits, the State shall contribute
toward the cost of the survivor's coverage under the basic
program of group health benefits an amount equal to 5% of
that cost for each full year of the deceased employee's or
deceased annuitant's creditable service in the State
Employees' Retirement System of Illinois on the date of
death, up to a maximum of 100% for a survivor of an employee
or annuitant with 20 or more years of creditable service.
The remainder of the cost of the new SERS survivor's coverage
under the basic program of group health benefits shall be the
responsibility of the survivor.
(a-3) Beginning January 1, 1998, for each person who
becomes a new SURS annuitant and participates in the basic
program of group health benefits, the State shall contribute
toward the cost of the annuitant's coverage under the basic
program of group health benefits an amount equal to 5% of
that cost for each full year of creditable service upon which
the annuitant's retirement annuity is based, up to a maximum
of 100% for an annuitant with 20 or more years of creditable
service. The remainder of the cost of a new SURS annuitant's
coverage under the basic program of group health benefits
shall be the responsibility of the annuitant.
(a-4) Beginning January 1, 1998, for each person who
becomes a new SURS retired employee and participates in the
basic program of group health benefits, the State shall
contribute toward the cost of the retired employee's coverage
under the basic program of group health benefits an amount
equal to 5% of that cost for each full year that the retired
employee was an employee as defined in Section 3, up to a
maximum of 100% for a retired employee who was an employee
for 20 or more years. The remainder of the cost of a new
SURS retired employee's coverage under the basic program of
group health benefits shall be the responsibility of the
retired employee.
(a-5) Beginning January 1, 1998, for each person who
becomes a new SURS survivor and participates in the basic
program of group health benefits, the State shall contribute
toward the cost of the survivor's coverage under the basic
program of group health benefits an amount equal to 5% of
that cost for each full year of the deceased employee's or
deceased annuitant's creditable service in the State
Employees' Retirement System of Illinois on the date of
death, up to a maximum of 100% for a survivor of an employee
or annuitant with 20 or more years of creditable service.
The remainder of the cost of the new SURS survivor's coverage
under the basic program of group health benefits shall be the
responsibility of the survivor.
(a-6) A new SERS annuitant, new SERS survivor, new SURS
annuitant, new SURS retired employee, or new SURS survivor
may waive or terminate coverage in the program of group
health benefits. Any such annuitant, survivor, or retired
employee who has waived or terminated coverage may enroll or
re-enroll in the program of group health benefits only during
the annual benefit choice period, as determined by the
Director; except that in the event of termination of coverage
due to nonpayment of premiums, the annuitant, survivor, or
retired employee may not re-enroll in the program.
(a-7) No later than May 1 of each calendar year, the
Director of Central Management Services shall certify in
writing to the Executive Secretary of the State Employee's
Retirement System the amounts of the Medicare supplement
health care premiums and the amounts of the health care
premiums for all other retirees who are not Medicare
eligible.
A separate calculation of the premiums based upon the
actual cost of each health care plan shall be so certified.
The Director of Central Management Services shall provide
to the Executive Secretary of the State Employee's Retirement
System such information statistics, and other data as he/she
may require to review the premium amounts certified by the
Director of Central Management Services.
(b) State employees who become eligible for this program
on or after January 1, 1980 in positions, normally requiring
actual performance of duty not less than 1/2 of a normal work
period but not equal to that of a normal work period, shall
be given the option of participating in the available
program. If the employee elects coverage, the State shall
contribute on behalf of such employee to the cost of the
employee's benefit and any applicable dependent supplement,
that sum which bears the same percentage as that percentage
of time the employee regularly works when compared to normal
work period.
(c) The basic non-contributory coverage from the basic
program of group health benefits shall be continued for each
employee not in pay status or on active service by reason of
(1) leave of absence due to illness or injury, (2) authorized
educational leave of absence or sabbatical leave, or (3)
military leave with pay and benefits. This coverage shall
continue until expiration of authorized leave and return to
active service, but not to exceed 24 months for leaves under
item (1) or (2). This 24-month limitation and the requirement
of returning to active service shall not apply to persons
receiving ordinary or accidental disability benefits or
retirement benefits through the appropriate State retirement
system or benefits under the Workers' Compensation or
Occupational Disease Act.
(d) The basic group life insurance coverage shall
continue, with full State contribution, where such person is
(1) absent from active service by reason of disability
arising from any cause other than self-inflicted, (2) on
authorized educational leave of absence or sabbatical leave,
or (3) on military leave with pay and benefits.
(e) Where the person is in non-pay status for a period
in excess of 30 days or on leave of absence, other than by
reason of disability, educational or sabbatical leave, or
military leave with pay and benefits, such person may
continue coverage only by making personal payment equal to
the amount normally contributed by the State on such person's
behalf. Such payments and coverage may be continued: (1)
until such time as the person returns to a status eligible
for coverage at State expense, but not to exceed 24 months,
(2) until such person's employment or annuitant status with
the State is terminated, or (3) for a maximum period of 4
years for members on military leave with pay and benefits and
military leave without pay and benefits (exclusive of any
additional service imposed pursuant to law).
(f) The Department shall establish by rule the extent
to which other employee benefits will continue for persons in
non-pay status or who are not in active service.
(g) The State shall not pay the cost of the basic
non-contributory group life insurance, program of health
benefits and other employee benefits for members who are
survivors as defined by paragraphs (1) and (2) of subsection
(q) of Section 3 of this Act. The costs of benefits for
these survivors shall be paid by the survivors or by the
University of Illinois Cooperative Extension Service, or any
combination thereof.
(h) Those persons occupying positions with any
department as a result of emergency appointments pursuant to
Section 8b.8 of the Personnel Code who are not considered
employees under this Act shall be given the option of
participating in the programs of group life insurance, health
benefits and other employee benefits. Such persons electing
coverage may participate only by making payment equal to the
amount normally contributed by the State for similarly
situated employees. Such amounts shall be determined by the
Director. Such payments and coverage may be continued until
such time as the person becomes an employee pursuant to this
Act or such person's appointment is terminated.
(i) Any unit of local government within the State of
Illinois may apply to the Director to have its employees,
annuitants, and their dependents provided group health
coverage under this Act on a non-insured basis. To
participate, a unit of local government must agree to enroll
all of its employees, who may select coverage under either
the State group health insurance plan or a health maintenance
organization that has contracted with the State to be
available as a health care provider for employees as defined
in this Act. A unit of local government must remit the
entire cost of providing coverage under the State group
health insurance plan or, for coverage under a health
maintenance organization, an amount determined by the
Director based on an analysis of the sex, age, geographic
location, or other relevant demographic variables for its
employees, except that the unit of local government shall not
be required to enroll those of its employees who are covered
spouses or dependents under this plan or another group policy
or plan providing health benefits as long as (1) an
appropriate official from the unit of local government
attests that each employee not enrolled is a covered spouse
or dependent under this plan or another group policy or plan,
and (2) at least 85% of the employees are enrolled and the
unit of local government remits the entire cost of providing
coverage to those employees. Employees of a participating
unit of local government who are not enrolled due to coverage
under another group health policy or plan may enroll at a
later date subject to submission of satisfactory evidence of
insurability and provided that no benefits shall be payable
for services incurred during the first 6 months of coverage
to the extent the services are in connection with any
pre-existing condition. A participating unit of local
government may also elect to cover its annuitants. Dependent
coverage shall be offered on an optional basis, with the
costs paid by the unit of local government, its employees, or
some combination of the two as determined by the unit of
local government. The unit of local government shall be
responsible for timely collection and transmission of
dependent premiums.
The Director shall annually determine monthly rates of
payment, subject to the following constraints:
(1) In the first year of coverage, the rates shall
be equal to the amount normally charged to State
employees for elected optional coverages or for enrolled
dependents coverages or other contributory coverages, or
contributed by the State for basic insurance coverages on
behalf of its employees, adjusted for differences between
State employees and employees of the local government in
age, sex, geographic location or other relevant
demographic variables, plus an amount sufficient to pay
for the additional administrative costs of providing
coverage to employees of the unit of local government and
their dependents.
(2) In subsequent years, a further adjustment shall
be made to reflect the actual prior years' claims
experience of the employees of the unit of local
government.
In the case of coverage of local government employees
under a health maintenance organization, the Director shall
annually determine for each participating unit of local
government the maximum monthly amount the unit may contribute
toward that coverage, based on an analysis of (i) the age,
sex, geographic location, and other relevant demographic
variables of the unit's employees and (ii) the cost to cover
those employees under the State group health insurance plan.
The Director may similarly determine the maximum monthly
amount each unit of local government may contribute toward
coverage of its employees' dependents under a health
maintenance organization.
Monthly payments by the unit of local government or its
employees for group health insurance or health maintenance
organization coverage shall be deposited in the Local
Government Health Insurance Reserve Fund. The Local
Government Health Insurance Reserve Fund shall be a
continuing fund not subject to fiscal year limitations. All
expenditures from this fund shall be used for payments for
health care benefits for local government and rehabilitation
facility employees, annuitants, and dependents, and to
reimburse the Department or its administrative service
organization for all expenses incurred in the administration
of benefits. No other State funds may be used for these
purposes.
A local government employer's participation or desire to
participate in a program created under this subsection shall
not limit that employer's duty to bargain with the
representative of any collective bargaining unit of its
employees.
(j) Any rehabilitation facility within the State of
Illinois may apply to the Director to have its employees,
annuitants, and their dependents provided group health
coverage under this Act on a non-insured basis. To
participate, a rehabilitation facility must agree to enroll
all of its employees and remit the entire cost of providing
such coverage for its employees, except that the
rehabilitation facility shall not be required to enroll those
of its employees who are covered spouses or dependents under
this plan or another group policy or plan providing health
benefits as long as (1) an appropriate official from the
rehabilitation facility attests that each employee not
enrolled is a covered spouse or dependent under this plan or
another group policy or plan, and (2) at least 85% of the
employees are enrolled and the rehabilitation facility remits
the entire cost of providing coverage to those employees.
Employees of a participating rehabilitation facility who are
not enrolled due to coverage under another group health
policy or plan may enroll at a later date subject to
submission of satisfactory evidence of insurability and
provided that no benefits shall be payable for services
incurred during the first 6 months of coverage to the extent
the services are in connection with any pre-existing
condition. A participating rehabilitation facility may also
elect to cover its annuitants. Dependent coverage shall be
offered on an optional basis, with the costs paid by the
rehabilitation facility, its employees, or some combination
of the 2 as determined by the rehabilitation facility. The
rehabilitation facility shall be responsible for timely
collection and transmission of dependent premiums.
The Director shall annually determine quarterly rates of
payment, subject to the following constraints:
(1) In the first year of coverage, the rates shall
be equal to the amount normally charged to State
employees for elected optional coverages or for enrolled
dependents coverages or other contributory coverages on
behalf of its employees, adjusted for differences between
State employees and employees of the rehabilitation
facility in age, sex, geographic location or other
relevant demographic variables, plus an amount sufficient
to pay for the additional administrative costs of
providing coverage to employees of the rehabilitation
facility and their dependents.
(2) In subsequent years, a further adjustment shall
be made to reflect the actual prior years' claims
experience of the employees of the rehabilitation
facility.
Monthly payments by the rehabilitation facility or its
employees for group health insurance shall be deposited in
the Local Government Health Insurance Reserve Fund.
(k) Any domestic violence shelter or service within the
State of Illinois may apply to the Director to have its
employees, annuitants, and their dependents provided group
health coverage under this Act on a non-insured basis. To
participate, a domestic violence shelter or service must
agree to enroll all of its employees and pay the entire cost
of providing such coverage for its employees. A
participating domestic violence shelter may also elect to
cover its annuitants. Dependent coverage shall be offered on
an optional basis, with employees, or some combination of the
2 as determined by the domestic violence shelter or service.
The domestic violence shelter or service shall be responsible
for timely collection and transmission of dependent premiums.
The Director shall annually determine quarterly rates of
payment, subject to the following constraints:
(1) In the first year of coverage, the rates shall
be equal to the amount normally charged to State
employees for elected optional coverages or for enrolled
dependents coverages or other contributory coverages on
behalf of its employees, adjusted for differences between
State employees and employees of the domestic violence
shelter or service in age, sex, geographic location or
other relevant demographic variables, plus an amount
sufficient to pay for the additional administrative costs
of providing coverage to employees of the domestic
violence shelter or service and their dependents.
(2) In subsequent years, a further adjustment shall
be made to reflect the actual prior years' claims
experience of the employees of the domestic violence
shelter or service.
(3) In no case shall the rate be less than the
amount normally charged to State employees or contributed
by the State on behalf of its employees.
Monthly payments by the domestic violence shelter or
service or its employees for group health insurance shall be
deposited in the Local Government Health Insurance Reserve
Fund.
(l) A public community college or entity organized
pursuant to the Public Community College Act may apply to the
Director initially to have only annuitants not covered prior
to July 1, 1992 by the district's health plan provided health
coverage under this Act on a non-insured basis. The
community college must execute a 2-year contract to
participate in the Local Government Health Plan. Those
annuitants enrolled initially under this contract shall have
no benefits payable for services incurred during the first 6
months of coverage to the extent the services are in
connection with any pre-existing condition. Any annuitant
who may enroll after this initial enrollment period shall be
subject to submission of satisfactory evidence of
insurability and to the pre-existing conditions limitation.
The Director shall annually determine monthly rates of
payment subject to the following constraints: for those
community colleges with annuitants only enrolled, first year
rates shall be equal to the average cost to cover claims for
a State member adjusted for demographics, Medicare
participation, and other factors; and in the second year, a
further adjustment of rates shall be made to reflect the
actual first year's claims experience of the covered
annuitants.
(m) The Director shall adopt any rules deemed necessary
for implementation of this amendatory Act of 1989 (Public Act
86-978).
(Source: P.A. 88-45; 89-53, eff. 7-1-95; 89-236, eff. 8-4-95;
89-324, eff. 8-13-95; 89-626, eff. 8-9-96.)
Section 10. The State Finance Act is amended by changing
Section 14a as follows:
(30 ILCS 105/14a) (from Ch. 127, par. 150a)
Sec. 14a. Payments for unused benefits; use of sick
leave.
(a) Upon the death of a State employee, his or her
estate is entitled to receive from the appropriation for
personal services available for payment of his or her
compensation such sum for any accrued vacation period,
accrued overtime, and accrued qualifying sick leave as would
have been paid or allowed to such employee had he or she
survived and terminated his or her employment.
The State Comptroller shall draw a his warrant or
warrants against the appropriation, upon receipt of a proper
death certificate, payable to decedent's estate, or if no
estate is opened, to the person or persons entitled thereto
under Section 25-1 of the Probate Act of 1975 upon receipt of
the affidavit referred to in that Section, for the sum due.
(b) The Department of Central Management Services shall
prescribe by rule the method of computing the accrued
vacation period and accrued overtime for all employees,
including those not otherwise subject to its jurisdiction,
and for the purposes of this Act the Department of Central
Management Services may require such reports as it deems
necessary. Accrued sick leave shall be computed as provided
in subsection (f) by multiplying 1/2 of the number of days of
accumulated sick leave by the daily rate of compensation
applicable to the employee at the time of his death,
retirement, resignation or other termination of service
described in this Section.
(c) Upon the retirement or resignation of a State
employee from State service, his or her accrued vacation,
overtime and qualifying sick leave shall be payable to the
employee in a single lump sum payment. However, if the
employee returns to employment in any capacity with the same
agency or department within 30 days of the termination of his
or her previous State employment, the employee must, as a
condition of his or her new State employment, repay the lump
sum amount within 30 days after his or her new State
employment commences. The amount repaid shall be deposited
into the fund from which the payment was made or the General
Revenue Fund, and the accrued vacation, overtime and sick
leave upon which the lump sum payment was based shall be
credited to the account of the employee in accordance with
the rules of the jurisdiction under which he or she is
employed.
(d) Upon the movement of a State employee from a
position subject to the Personnel Code to another State
position not subject to the Personnel Code, or to a position
subject to the Personnel Code from a State position not
subject to the Personnel Code, or upon the movement of a
State employee of an institution or agency subject to the
State Universities Civil Service System from one such
institution or agency to another such institution or agency,
his or her accrued vacation, overtime and sick leave shall be
credited to the employee's account in accordance with the
rules of the jurisdiction to which the State employee moved.
However, if the rules preclude crediting the State employee's
total accrued vacation, overtime or sick leave to his or her
account at the jurisdiction to which he or she is to move,
the nontransferable nontransferrable accrued vacation,
overtime, and qualifying or sick leave shall be payable to
the employee in a single lump sum payment by the jurisdiction
from which he or she moved.
(e) Upon the death of a State employee or the
retirement, indeterminate layoff or resignation of a State
employee from State service, the employee's retirement or
disability benefits shall be computed as if the employee had
remained in the State employment at his or her most recent
rate of compensation until his or her accumulated unused
leave for vacation, overtime, sickness and personal business
would have been exhausted. The employing agency shall
certify, in writing to the employee, the unused leaves the
employee has accrued. This certification may be held by the
employee or forwarded to the retirement fund. Employing
agencies not covered by the Personnel Code shall certify, in
writing to the employee, the unused leaves the employee has
accrued.
(f) Accrued sick leave shall be computed by multiplying
1/2 of the number of days of accumulated sick leave by the
daily rate of compensation applicable to the employee at the
time of his or her death, retirement, resignation, or other
termination of service described in this Section.
The payment for qualifying accrued sick leave after the
employee's death, retirement, resignation, or other
termination of service provided by Public Act 83-976 shall be
for sick leave days earned on or after January 1, 1984 and
before January 1, 1998. Sick leave accumulated on or after
January 1, 1998 is not compensable under this Section at the
time of the employee's death, retirement, resignation, or
other termination of service, but may be used to establish
retirement system service credit as provided in the Illinois
Pension Code.
The Department of Central Management Services shall
prescribe by rule the method of computing the accrued sick
leave days for all employees, including those not otherwise
subject to its jurisdiction. Beginning January 1, 1998, sick
leave used by an employee shall be charged against his or her
accumulated sick leave in the following order: first, sick
leave accumulated before January 1, 1984; then sick leave
accumulated on or after January 1, 1998; and finally sick
leave accumulated on or after January 1, 1984 but before
January 1, 1998.
(Source: P.A. 87-384; 87-721; 87-895; 87-1234.)
Section 12. The Illinois Pension Code is amended by
changing Sections 15-112, 15-113.2, 15-113.3, 15-113.4,
15-113.5, 15-113.7, 15-125, 15-136.2, 15-143, 15-153.2,
15-157, 15-167.2, 15-185, 15-190, 15-191, and adding Section
15-168.1 as follows:
(40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
Sec. 15-112. Final rate of earnings. "Final rate of
earnings": For an employee who is paid on an hourly basis or
who receives an annual salary in installments during 12
months of each academic year, the average annual earnings
during the 48 consecutive calendar month period ending with
the last day of final termination of employment or the 4
consecutive academic years of service in which the employee's
earnings were the highest, whichever is greater. For any
other employee, the average annual earnings during the 4
consecutive academic years of service in which his or her
earnings were the highest. For an employee with less than 48
months or 4 consecutive academic years of service, the
average earnings during his or her entire period of service.
The earnings of an employee with more than 36 months of
service prior to the date of becoming a participant are, for
such period, considered equal to the average earnings during
the last 36 months of such service. For an employee on leave
of absence with pay, or on leave of absence without pay who
makes contributions during such leave, earnings are assumed
to be equal to the basic compensation on the date the leave
began. For an employee on disability leave, earnings are
assumed to be equal to the basic compensation on the date
disability occurs or the average earnings during the 24
months immediately preceding the month in which disability
occurs, whichever is greater.
If a participant is an employee for at least 6 months
during the academic year in which his or her employment is
terminated, the annual final rate of earnings shall be 25% of
the sum of (1) the annual basic compensation for that year,
and (2) the amount earned during the 36 months immediately
preceding that year, if this is greater than the final rate
of earnings as calculated under the other provisions of this
Section.
In the determination of the final rate of earnings for an
employee, that part of an employee's earnings for any
academic year beginning after June 30, 1997, which exceeds
the employee's earnings with that employer for the preceding
year by more than 20 percent shall be excluded; in the event
that an employee has more than one employer this limitation
shall be calculated separately for the earnings with each
employer. In making such calculation, only the basic
compensation of employees shall be considered, without regard
to vacation or overtime or to contracts for summer
employment.
The following are not considered as earnings in
determining final rate of earnings: separation pay,
retirement pay, payment in lieu of unused sick leave and
payments from an employer for the period used in determining
final rate of earnings for any purpose other than services
rendered, leave of absence or vacation granted during that
period, and vacation of up to 56 work days allowed upon
termination of employment under a vacation policy of an
employer which was in effect on or before January 1, 1977.
Intermittent periods of service shall be considered as
consecutive in determining final rate of earnings.
(Source: P.A. 84-1472.)
(40 ILCS 5/15-113.2) (from Ch. 108 1/2, par. 15-113.2)
Sec. 15-113.2. Service for leaves of absence. "Service
for leaves of absence" includes those periods of leaves of
absence at less than 50% pay, except military leave and
periods of disability leave in excess of 60 days, for which
the employee pays the contributions required under Section
15-157 in accordance with rules prescribed by the board based
upon the employee's basic compensation on the date the leave
begins, or in the case of leave for service with a teacher
organization, based upon the actual compensation received by
the employee for such service after January 26, 1988, if the
employee so elects within 30 days of that date or the date
the leave for service with a teacher organization begins,
whichever is later; provided that the employee (1) returns to
employment covered by this system at the expiration of the
leave, or within 30 days after the termination of a
disability which occurs during the leave and continues this
employment at a percentage of time equal to or greater than
the percentage of time immediately preceding the leave of
absence for at least 8 consecutive months or a period equal
to the period of the leave, whichever is less, or (2) is
precluded from meeting the foregoing conditions because of
disability or death. If service credit is denied because the
employee fails to meet these conditions, the contributions
covering the leave of absence shall be refunded without
interest. The return to employment condition does not apply
if the leave of absence is for service with a teacher
organization and the leave of absence is in effect on the
effective date of this amendatory Act of 1993.
Service credit provided under this Section shall not
exceed 3 years in any period of 10 years, unless the employee
is on special leave granted by the employer for service with
a teacher organization. Commencing with the fourth year in
any period of 10 years, a participant on such special leave
is also required to pay employer contributions equal to the
normal cost as defined in Section 15-155, based upon the
employee's basic compensation on the date the leave begins,
or based upon the actual compensation received by the
employee for service with a teacher organization if the
employee has so elected.
(Source: P.A. 86-1488; 87-1265.)
(40 ILCS 5/15-113.3) (from Ch. 108 1/2, par. 15-113.3)
Sec. 15-113.3. Service for periods of military service.
"Service for periods of military service": Those periods,
not exceeding 5 years, during which a person served in the
armed forces of the United States, of which all but 2 years
must have immediately followed a period of employment with an
employer under this system or the State Employees' Retirement
System of Illinois; provided that the person received a
discharge other than dishonorable and again became an
employee under this System within one year after discharge.
However, for the up to 2 years of military service not
immediately following employment, the applicant must make
contributions to the System (1) at the rates provided in
Section 15-157 based upon the employee's basic compensation
on the last date as a participating employee prior to such
military service, or on the first date as a participating
employee after such military service, whichever is greater,
plus (2) an amount determined by the board to be equal to the
employer's normal cost of the benefits accrued for such
military service, plus (3) interest on items (1) and (2) at
the effective rate from the later of the date of first
membership in the System or the date of conclusion of
military service to the date of payment. The change in the
required contribution for purchased military credit made by
this amendatory Act of 1993 does not entitle any person to a
refund of contributions already paid.
The changes to this Section made by this amendatory Act
of 1991 shall apply not only to persons who on or after its
effective date are in service under the System, but also to
persons whose employment terminated prior to that date,
whether or not the person is an annuitant on that date. In
the case of an annuitant who applies for credit allowable
under this Section for a period of military service that did
not immediately follow employment, and who has made the
required contributions for such credit, the annuity shall be
recalculated to include the additional service credit, with
the increase taking effect on the date the System received
written notification of the annuitant's intent to purchase
the credit, if payment of all the required contributions is
made within 60 days of such notice, or else on the first
annuity payment date following the date of payment of the
required contributions. In calculating the automatic annual
increase for an annuity that has been recalculated under this
Section, the increase attributable to the additional service
allowable under this amendatory Act of 1991 shall be included
in the calculation of automatic annual increases accruing
after the effective date of the recalculation.
(Source: P.A. 87-794; 87-1265.)
(40 ILCS 5/15-113.4) (from Ch. 108 1/2, par. 15-113.4)
Sec. 15-113.4. Service for unused sick leave. "Service
for unused sick leave": A participant who is an employee
under this System or one of the other systems subject to
Article 20 of this Code within 60 days immediately preceding
the date on which his or her retirement annuity begins, is
entitled to credit for service for that portion of unused
sick leave earned in the course of employment with an
employer and credited on the date of termination of
employment by an employer for which payment is not received,
in accordance with the following schedule: 30 through 90
full calendar days and 20 through 59 full work days of unused
sick leave, 1/4 of a year of service; 91 through 180 full
calendar days and 60 through 119 full work days, 1/2 of a
year of service; 181 through 270 full calendar days and 120
through 179 full work days, 3/4 of a year of service; 271
through 360 full calendar days and 180 through 240 full work
days, one year of service. Only uncompensated, unused sick
leave earned in accordance with an employer's sick leave
accrual policy generally applicable to employees or a class
of employees shall be taken into account in calculating
service credit under this Section. Any uncompensated, unused
sick leave granted by an employer to facilitate the hiring,
retirement, termination, or other special circumstances of an
employee shall not be taken into account in calculating
service credit under this Section. If a participant
transfers from one employer to another, the unused sick leave
credited by the previous employer shall be considered in
determining service to be credited under this Section, even
if the participant terminated service prior to the effective
date of P.A. 86-272 (August 23, 1989); if necessary, the
retirement annuity shall be recalculated to reflect such sick
leave credit. Each employer shall certify to the board the
number of days of unused sick leave accrued to the
participant's credit on the date that the participant's
status as an employee terminated. This period of unused sick
leave shall not be considered in determining the date the
retirement annuity begins.
(Source: P.A. 86-272; 87-794.)
(40 ILCS 5/15-113.5) (from Ch. 108 1/2, par. 15-113.5)
Sec. 15-113.5. Service for employment with other public
agencies in this State. "Service for employment with other
public agencies in this State": includes the following
periods:
(a) periods during which a person rendered services for
the State of Illinois, prior to January 1, 1944, under
employment not covered by this Article, if (1) such periods
would have been considered creditable service under the State
Employees' Retirement System of Illinois had that system been
in effect at that time, and (2) service credit for such
periods has not been granted under the State Employees'
Retirement System of Illinois.
(b) periods credited under the State Employees'
Retirement System of Illinois on the date an employee became
eligible for participation in the State Universities
Retirement System as a result of a transfer of a State
function from a department, commission or other agency of
this State to an employer, excluding periods as a "covered
employee" as defined in Article 14 of this Code, provided the
employee has received a refund of his or her contributions
from the State Employees' Retirement System of Illinois and
pays to this system contributions equal to the amount of the
refund together with compound interest at the rate required
for repayment of a refund under Section 15-154 from the date
the refund is received to the date payment is made.
(c) periods credited in a retirement system covering a
governmental unit, as defined in Section 20-107 on the date a
person becomes a participant, if (1) a function of this
governmental unit is transferred in whole or in part to an
employer, and (2) the person transfers employment from the
governmental unit to such employer within 6 months after the
employer begins operation of this function, and (3) the
person cannot qualify for a proportional retirement annuity
from the retirement system covering this governmental unit,
and (4) the participant receives a refund of his or her
contributions from the retirement system covering this
governmental unit and pays to this system contributions equal
to the amount of the refund together with compound interest
from the date the refund is made by the system to the date
payment is received by the board at the rate of 6% per annum
through August 31, 1982, and at the effective rates after
that date.
(d) periods during which a participant contributed to
the Park Policemen's Annuity Fund as defined in Section
5-219, provided the participant and the Chicago Policemen's
Annuity Fund pay to this system the required employee and
employer contributions.
(e) periods during which a person rendered services for
an athletic association affiliated with the University of
Illinois, provided that (1) the employee was employed by that
athletic association on January 1, 1960, (2) annuity
contracts covering that employment have been purchased by
other retirement systems covering employees of the athletic
association, and (3) the employee files with the board an
election to become a participant and assigns to the board his
or her right, title, and interest in those annuity contracts.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-113.7) (from Ch. 108 1/2, par. 15-113.7)
Sec. 15-113.7. Service for other public employment.
"Service for other public employment": Includes those
periods not exceeding the lesser of 10 years or 2/3 of the
service granted under other Sections of this Article dealing
with service credit, during which a person was employed full
time by the United States government, or by the government of
a state, or by a political subdivision of a state, or by an
agency or instrumentality of any of the foregoing, if the
person (1) cannot qualify for a retirement pension or other
benefit based upon employer contributions from another
retirement system, exclusive of federal social security,
based in whole or in part upon this employment, and (2) pays
the lesser of (A) an amount equal to 8% of his or her annual
basic compensation on the date of becoming a participating
employee subsequent to this service multiplied by the number
of years of such service, together with compound interest
from the date participation begins to the date payment is
received by the board at the rate of 6% per annum through
August 31, 1982, and at the effective rates after that date,
and (B) 50% of the actuarial value of the increase in the
retirement annuity provided by this service, and (3)
contributes for at least 5 years subsequent to this
employment to one or more of the following systems: the
State Universities Retirement System, the Teachers'
Retirement System of the State of Illinois, and the Public
School Teachers' Pension and Retirement Fund of Chicago. If
a function of a governmental unit as defined by Section
20-107 is transferred by law, in whole or in part to an
employer, and an employee transfers employment from this
governmental unit to such employer within 6 months of the
transfer of the function, the payment for service authorized
under this Section shall not exceed the amount which would
have been payable for this service to the retirement system
covering the governmental unit from which the function was
transferred.
The service granted under this Section shall not be
considered in determining whether the person has the minimum
of 8 years of service required to qualify for a retirement
annuity at age 55 or the 5 years of service required to
qualify for a retirement annuity at age 62, as provided in
Section 15-135. The maximum allowable service of 10 years
for this governmental employment shall be reduced by the
service credit which is validated under paragraph (3) of
Section 16-127 and paragraph one of Section 17-133.
Except as hereinafter provided, this Section shall not
apply to persons who become participants in the system after
September 1, 1974. Except as hereinafter provided, credit
for military service under this Section shall be allowed only
to persons who have applied for such credit before September
1, 1974. The foregoing September 1, 1974, limitations do not
apply to any person who became a participant in the system on
or before January 15, 1977, and prior thereto, had a minimum
of 20 years of service credit granted in the General Assembly
Retirement System.
(Source: P.A. 87-1265.)
(40 ILCS 5/15-125) (from Ch. 108 1/2, par. 15-125)
Sec. 15-125. "Prescribed Rate of Interest; Effective
Rate of Interest":
(1) "Prescribed rate of interest": The rate of interest
to be used in actuarial valuations and in development of
actuarial tables as determined by the board on the basis of
the probable average effective rate of interest on a long
term basis.
(2) "Effective rate of interest": The interest rate for
all or any part of a fiscal year that is determined by the
board based on factors including the system's past and
expected investment experience; historical and expected
fluctuations in the market value of investments; the
desirability of minimizing volatility in the effective rate
of interest from year to year; the provision of reserves for
anticipated losses upon sales, redemptions, or other
disposition of investments and for variations in interest
experience. This amendatory Act of 1997 is a clarification
of existing law. The interest rate for any fiscal year
determined by the board from the investment experience of the
preceding fiscal years and the estimated investment
experience of the current fiscal year. In determining the
effective rate of interest to be credited to member
contribution accounts and other reserves, the board may
provide for reserves for anticipated losses upon sales,
redemptions or other disposition of investments and for
reserves for variations in interest experience.
(Source: P.A. 79-1146.)
(40 ILCS 5/15-136.2) (from Ch. 108 1/2, par. 15-136.2)
Sec. 15-136.2. Early retirement without discount. A
participant whose retirement annuity begins after June 1,
1981 and on or before September 1, 2002 1997 and within six
months of the last day of employment for which retirement
contributions were required, may elect at the time of
application to make a one time employee contribution to the
System and thereby avoid the early retirement reduction in
retirement annuity specified under subsection (b) of Section
15-136. The exercise of the election shall obligate the last
employer to also make a one time non-refundable contribution
to the System.
The one time employee and employer contributions shall be
a percentage of the retiring participant's highest full time
annual salary rate during the academic years which were
considered in determining his or her final rate of earnings,
or if not full time then the full time equivalent. The
employee contribution rate shall be 7% multiplied by the
lesser of the following 2 sums: (1) the number of years that
the participant is less than age 60; or (2) the number of
years that the participant's creditable service is less than
35 years. The employer contribution shall be at the rate of
20% for each year the participant is less than age 60. The
employer shall pay the employer contribution from the same
source of funds which is used in paying earnings to
employees.
Upon receipt of the application and election, the System
shall determine the one time employee and employer
contributions. The provisions of this Section shall not be
applicable until all the above outlined contributions have
been received by the System; however, the date such
contributions are received shall not be considered in
determining the effective date of retirement.
For persons who apply to the Board after the effective
date of this amendatory Act of 1993 and before July 1, 1993,
requesting a retirement annuity to begin no earlier than July
1, 1993 and no later than June 30, 1994, the employer shall
pay both the employee and employer contributions required
under this Section.
The number of employees retiring under this Section in
any fiscal year may be limited at the option of the employer
to no less than 15% of those eligible. The right to elect
early retirement without discount shall be allocated among
those applying on the basis of seniority in the service of
the last employer.
(Source: P.A. 87-794; 87-1265.)
(40 ILCS 5/15-143) (from Ch. 108 1/2, par. 15-143)
Sec. 15-143. Death benefits - General provisions. All
death benefits shall be paid as a single cash sum or
otherwise as the beneficiary and the board mutually agree,
except where an annuity is payable under Section 15-144. A
death benefit shall be paid as soon as practicable after
receipt by the board of (1) a written application by the
beneficiary and (2) such evidence of death and identification
as the board shall require.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-153.2) (from Ch. 108 1/2, par. 15-153.2)
Sec. 15-153.2. Disability retirement annuity. A
participant whose disability benefits are discontinued under
the provisions of clause (6) (5) of Section 15-152, is
entitled to a disability retirement annuity of 35% of the
basic compensation which was payable to the participant at
the time that disability began, provided at least 2 licensed
and practicing physicians appointed by the board certify that
the participant has a medically determinable physical or
mental impairment which would prevent him or her from
engaging in any substantial gainful activity, and which can
be expected to result in death or which has lasted or can be
expected to last for a continuous period of not less than 12
months. The terms "medically determinable physical or mental
impairment" and "substantial gainful activity" shall have the
meanings ascribed to them in the "Social Security Act", as
now or hereafter amended, and the regulations issued
thereunder.
The disability retirement annuity payment period shall
begin immediately following the expiration of the disability
benefit payments under clause (6) (5) of Section 15-152 and
shall be discontinued when (1) the physical or mental
impairment no longer prevents the participant from engaging
in any substantial gainful activity, (2) the participant dies
or (3) the participant elects to receive a retirement annuity
under Sections 15-135 and 15-136. If a person's disability
retirement annuity is discontinued under clause (1), all
rights and credits accrued in the system on the date that the
disability retirement annuity began shall be restored, and
the disability retirement annuity paid shall be considered as
disability payments under clause (6) (5) of Section 15-152.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
Sec. 15-157. Employee Contributions.
(a) Each participating employee shall make contributions
towards the retirement annuity of each payment of earnings
applicable to employment under this system on and after the
date of becoming a participant as follows: Prior to
September 1, 1949, 3 1/2% of earnings; from September 1, 1949
to August 31, 1955, 5%; from September 1, 1955 to August 31,
1969, 6%; from September 1, 1969, 6 1/2%. These
contributions are to be considered as normal contributions
for purposes of this Article.
Each participant who is a police officer or firefighter
shall make normal contributions of 8% of each payment of
earnings applicable to employment as a police officer or
firefighter under this system on or after September 1, 1981,
unless he or she files with the board within 60 days after
the effective date of this amendatory Act of 1991 or 60 days
after the board receives notice that he or she is employed as
a police officer or firefighter, whichever is later, a
written notice waiving the retirement formula provided by
Rule 4 of Section 15-136. This waiver shall be irrevocable.
If a participant had met the conditions set forth in Section
15-132.1 prior to the effective date of this amendatory Act
of 1991 but failed to make the additional normal
contributions required by this paragraph, he or she may elect
to pay the additional contributions plus compound interest at
the effective rate. If such payment is received by the
board, the service shall be considered as police officer
service in calculating the retirement annuity under Rule 4 of
Section 15-136.
(b) Starting September 1, 1969, each participating
employee shall make additional contributions of 1/2 of 1% of
earnings to finance a portion of the cost of the annual
increases in retirement annuity provided under Section
15-136.
(c) Each participating employee shall make survivors
insurance contributions of 1% of earnings applicable under
this system on and after August 1, 1959. Contributions in
excess of $80 during any fiscal year beginning before August
31, 1969 and in excess of $120 during any fiscal year
thereafter until September 1, 1971 shall be considered as
additional contributions for purposes of this Article.
(d) If the board by board rule so permits and subject to
such conditions and limitations as may be specified in its
rules, a participant may make other additional contributions
of such percentage of earnings or amounts as the participant
shall elect in a written notice thereof received by the
board.
(e) That fraction of a participant's total accumulated
normal contributions, the numerator of which is equal to the
number of years of service in excess of that which is
required to qualify for the maximum retirement annuity, and
the denominator of which is equal to the total service of the
participant, shall be considered as accumulated additional
contributions. The determination of the applicable maximum
annuity and the adjustment in contributions required by this
provision shall be made as of the date of the participant's
retirement.
(f) Notwithstanding the foregoing, a participating
employee shall not be required to make contributions under
this Section after the date upon which continuance of such
contributions would otherwise cause his or her retirement
annuity to exceed the maximum retirement annuity as specified
in clause (1) of subsection (c) of Section 15-136.
(Source: P.A. 86-272; 86-1488.)
(40 ILCS 5/15-167.2) (from Ch. 108 1/2, par. 15-167.2)
Sec. 15-167.2. To issue bonds. To borrow money and, in
evidence of its obligation to repay the borrowing, to issue
bonds for the purpose of financing the cost of any project.
The bonds shall be authorized pursuant to a resolution to be
adopted by the board setting forth all details in connection
with the bonds.
The principal amount of the outstanding bonds of the
board shall not at any time exceed $20,000,000 $10,000,000.
The bonds may be issued in one or more series, bear such
date or dates, become due at such time or times within 40
years, bear interest payable at such intervals and at such
rate or rates, which rates may be fixed or variable, be in
such denominations, be in such form, either coupon,
registered or book-entry, carry such conversion, registration
and exchange privileges, be subject to defeasance upon such
terms, have such rank or priority, be executed in such
manner, be payable in such medium of payment at such place or
places within or without the State of Illinois, make
provision for a corporate trustee within or without the State
of Illinois with respect to such bonds, prescribe the rights,
powers and duties thereof to be exercised for the benefit of
the board, the system and the protection of the bondholders,
provide for the holding in trust, investment and use of
moneys, funds and accounts held in connection therewith, be
subject to such terms of redemption with or without premium,
and be sold in such manner at private or public sale and at
such price, all as the board shall determine. Whenever bonds
are sold at a price less than par, they shall be sold at such
price and bear interest at such rate or rates that either the
true interest cost (yield) or the net interest rate, as may
be selected by the board, received upon the sale of such
bonds does not exceed the maximum interest rate permitted by
the Bond Authorization Act, as amended at the time of the
making of the contract.
Any bonds may be refunded or advance refunded upon such
terms as the board may determine for such term of years, not
exceeding 40 years, and in such principal amount, as may be
deemed necessary by the board. Any redemption premium
payable upon the redemption of bonds may be payable from the
proceeds of refunding bonds issued for the purpose of
refunding such bonds, from any lawfully available source or
from both refunding bond proceeds and such other sources.
The bonds or refunding bonds shall be obligations of the
board payable from the income, interest and dividends derived
from investments of the board, all as may be designated in
the resolution of the board authorizing the issuance of the
bonds. The bonds shall be secured as provided in the
authorizing resolution, which may, notwithstanding any other
provision of this Code, include a specific pledge or
assignment of and lien on or security interest in the income,
interest and dividends derived from investments of the board
and a specific pledge or assignment of and lien on or
security interest in any funds, reserves or accounts
established or provided for by the resolution of the board
authorizing the issuance of the bonds. The bonds or refunding
bonds shall not be payable from any employer or employee
contributions derived from State appropriations nor
constitute obligations or indebtedness of the State of
Illinois or of any municipal corporation or other body
politic and corporate in the State.
The holder or holders of any bonds issued by the board
may bring suits at law or proceedings in equity to compel the
performance and observance by the board or any of its agents
or employees of any contract or covenant made with the
holders of the bonds, to compel the board or any of its
agents or employees to perform any duties required to be
performed for the benefit of the holders of the bonds by the
provisions of the resolution authorizing their issuance, and
to enjoin the board or any of its agents or employees from
taking any action in conflict with any such contract or
covenant.
Notwithstanding the provisions of Section 15-188 of this
Code, if the board fails to pay the principal of, premium, if
any, or interest on any of the bonds as they become due, a
civil action to compel payment may be instituted in the
appropriate circuit court by the holder or holders of the
bonds upon which such default exists or by a trustee acting
on behalf of the holders.
No bonds may be issued under this Section until a copy of
the resolution of the board authorizing such bonds, certified
by the secretary of the board, has been filed with the
Governor of the State of Illinois.
"Bonds" means any instrument evidencing the obligation to
pay money, including without limitation bonds, notes,
installment or financing contracts, leases, certificates,
warrants, and any other evidences of indebtedness.
"Project" means the acquisition, construction, equipping,
improving, expanding and furnishing of any office building
for the use of the system, including any real estate or
interest in real estate necessary or useful in connection
therewith.
"Cost of any project" includes all capital costs of the
project, an amount for expenses of issuing any bonds to
finance such project, including underwriter's discount and
costs of bond insurance or other credit enhancement, an
amount necessary to provide for a reserve fund for the
payment of the principal of and interest on such bonds and an
amount to pay interest on such bonds for a period not to
exceed the greater of 2 years or a period ending 6 months
after the estimated date of completion of the project.
(Source: P.A. 86-1034.)
(40 ILCS 5/15-168.1 new)
Sec. 15-168.1. Testimony and the production of records.
The secretary of the Board shall have the power to issue
subpoenas to compel the attendance of witnesses and the
production of documents and records, including law
enforcement records maintained by law enforcement agencies,
in conjunction with a disability claim, administrative review
proceedings, or felony forfeiture investigation. The fees of
witnesses for attendance and travel shall be the same as the
fees of witnesses before the circuit courts of this State and
shall be paid by the party seeking the subpoena. The Board
may apply to any circuit court in the State for an order
requiring compliance with a subpoena issued under this
Section. Subpoenas issued under this Section shall be
subject to applicable provisions of the Code of Civil
Procedure.
(40 ILCS 5/15-185) (from Ch. 108 1/2, par. 15-185)
Sec. 15-185. Annuities, etc. Exempt. The accumulated
employee and employer contributions shall be held in trust
for each participant and annuitant, and this trust shall be
treated as a spendthrift trust. Except as provided in this
Article, all cash, securities and other property of this
system, all annuities and other benefits payable under this
Article and all accumulated credits of participants and
annuitants in this system and the right of any person to
receive an annuity or other benefit under this Article, or a
refund of contributions, shall not be subject to judgment,
execution, garnishment, attachment, or other seizure by
process, in bankruptcy or otherwise, nor to sale, pledge,
mortgage or other alienation, and shall not be assignable.
The board, however, may deduct from the benefits, refunds and
credits payable to the participant, annuitant or beneficiary,
amounts owed by the participant or annuitant to the system.
No attempted sale, transfer or assignment of any benefit,
refund or credit shall prevent the right of the board to make
the deduction and offset authorized in this Section. Any
participant or annuitant may authorize the board to deduct
from disability benefits or annuities, premiums due under any
group hospital-surgical insurance program which is sponsored
or approved by any employer; however, the deductions from
disability benefits may not begin prior to 6 months after the
disability occurs.
A person receiving an annuity or benefit may also
authorize withholding from such annuity or benefit for the
purposes enumerated in the State Salary and Annuity
Withholding Act.
This amendatory Act of 1989 is a clarification of
existing law and shall be applicable to every participant and
annuitant without regard to whether status as an employee
terminates before the effective date of this amendatory Act
of 1989.
(Source: P.A. 86-273; 86-1488.)
(40 ILCS 5/15-190) (from Ch. 108 1/2, par. 15-190)
Sec. 15-190. Persons under legal disability. If a person
is under legal disability when any right or privilege accrues
to him or her under this Article, a guardian may be appointed
pursuant to law, and may, on behalf of such person, claim and
exercise any such right or privilege with the same force and
effect as if the person had not been under a legal disability
and had claimed or exercised such right or privilege.
If a person's application for benefits or a physician's
certificate on file with the board shows that the person is
under a legal disability, and no guardian has been appointed
for his or her estate, the benefits payable under this
Article may be paid (1) directly to the person under legal
disability, or (2) to either parent of the person under legal
disability or any adult person with whom the person under
legal disability may at the time be living, provided only
that such parent or adult person to whom any amount is to be
paid shall have advised the board in writing that such amount
will be held or used for the benefit of the person under
legal disability, or (3) to the trustee of any trust created
for the sole benefit of the person under legal disability
while that person is living, provided only that the trustee
of such trust to whom any amount is to be paid shall have
advised the board in writing that such amount will be held or
used for the benefit of the person under legal disability.
The system shall not be required to determine the validity of
the trust or any of the terms thereof. The representation of
the trustee that the trust meets the requirements of this
Section shall be conclusive as to the system. The written
receipt of the person under legal disability or the other
person who receives such payment shall be an absolute
discharge of the system's liability in respect of the amount
so paid.
(Source: P.A. 86-1488.)
(40 ILCS 5/15-191) (from Ch. 108 1/2, par. 15-191)
Sec. 15-191. Payment of benefits to minors. If any
benefits under this Article become payable to a minor, the
board may make payment (1) directly to the minor, (2) to any
person who has legally qualified and is acting as guardian of
the minor's person or property in any jurisdiction, or (3) to
either parent of the minor or to any adult person with whom
the minor may at the time be living, provided only that the
parent or other person to whom any amount is to be paid shall
have advised the board in writing that such amount will be
held or used for the benefit of the minor, or (4) to the
trustee of any trust created for the sole benefit of the
minor while that minor is living, provided only that the
trustee of such trust to whom any amount is to be paid shall
have advised the board in writing that such amount will be
held or used for the benefit of the minor. The system shall
not be required to determine the validity of the trust or any
of the terms thereof. The representation of the trustee that
the trust meets the requirements of this Section shall be
conclusive as to the system. The written receipt of the
minor, parent, trustee, or other person who receives such
payment shall be an absolute discharge of the system's
liability in respect of the amount so paid.
(Source: P.A. 83-1440.)
Section 15. The Illinois Pension Code is amended by
changing Sections 14-103.12, 14-108, 14-431, 15-134, 15-135,
and 15-136 as follows:
(40 ILCS 5/14-103.12) (from Ch. 108 1/2, par. 14-103.12)
Sec. 14-103.12. Final average compensation.
(a) For retirement and survivor annuities, "final
average compensation" means the monthly compensation obtained
by dividing the total compensation of an employee during the
period of: (1) the 48 consecutive months of service within
the last 120 months of service in which the total
compensation was the highest, or (2) the total period of
service, if less than 48 months, by the number of months of
service in such period; provided that for purposes of a
retirement annuity the average compensation for the last 12
months of the 48-month period shall not exceed the final
average compensation by more than 25%.
(b) For death and disability benefits, in the case of a
full-time employee, "final average compensation" means the
greater of (1) the rate of compensation of the employee at
the date of death or disability multiplied by 1 in the case
of a salaried employee, by 174 in the case of an hourly
employee, and by 22 in the case of a per diem employee, or
(2) for benefits commencing on or after January 1, 1991,
final average compensation as determined under subsection
(a).
For purposes of this paragraph, full or part-time status
shall be certified by the employing agency. Final rate of
compensation for a part-time employee shall be the total
compensation earned during the last full calendar month prior
to the date of death or disability.
(c) Notwithstanding the provisions of subsection (a),
for the purpose of calculating retirement and survivor
annuities of persons with at least 20 years of eligible
creditable service as defined in Section 14-110 a State
policeman, "final average compensation" means the monthly
rate of compensation received by the person on the last day
of eligible creditable service (but not to exceed 115% of the
average monthly compensation received by the person for the
last 24 months of service, unless the person was in service
as a State policeman before the effective date of this
amendatory Act of 1997), or the average monthly compensation
received by the person for the last 48 months of service
prior to retirement, whichever is greater.
(d) Notwithstanding the provisions of subsection (a),
for a person who was receiving, on the date of retirement or
death, a disability benefit calculated under subdivision
(b)(2) of this Section, the final average compensation used
to calculate the disability benefit may be used for purposes
of calculating the retirement and survivor annuities.
(e) In computing the final average compensation, periods
of military leave shall not be considered.
(f) The changes to this Section made by this amendatory
Act of 1997 (redefining final average compensation for
members under the alternative formula) apply to members who
retire on or after January 1, 1998, without regard to whether
employment terminated before the effective date of this
amendatory Act of 1997.
(Source: P.A. 86-273; 86-1488.)
(40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
(Text of Section before amendment by P.A. 89-507)
Sec. 14-108. Amount of retirement annuity. A member who
has contributed to the System for at least 12 months, shall
be entitled to a prior service annuity for each year of
certified prior service credited to him, except that a member
shall receive 1/3 of the prior service annuity for each year
of service for which contributions have been made and all of
such annuity shall be payable after the member has made
contributions for a period of 3 years. Proportionate amounts
shall be payable for service of less than a full year after
completion of at least 12 months.
The total period of service to be considered in
establishing the measure of prior service annuity shall
include service credited in the Teachers' Retirement System
of the State of Illinois and the State Universities
Retirement System for which contributions have been made by
the member to such systems; provided that at least 1 year of
the total period of 3 years prescribed for the allowance of a
full measure of prior service annuity shall consist of
membership service in this System for which credit has been
granted.
(a) In the case of a member who retires on or after
January 1, 1998 and is a noncovered employee, the retirement
annuity for membership service and prior service shall be
2.2% 1.67% of final average compensation for each of the
first 10 years of service; 1.90% for each of the next 10
years of service; 2.10% for each year of service in excess of
20 but not exceeding 30; and 2.30% for each year in excess of
30. Any service credit established as a covered employee
shall be considered in determining the applicable percentages
and computed as stated in paragraph (b).
(b) In the case of a member who retires on or after
January 1, 1998 and is a covered employee, the retirement
annuity for membership service and prior service shall be
computed as stated in paragraph (a) for all service credit
established as a noncovered employee; for service credit
established as a covered employee it shall be 1.67% of final
average compensation 1% for each of the first 10 years of
service; 1.10% for each of the next 10 years of service;
1.30% for each year of service in excess of 20 but not
exceeding 30; and 1.50% for each year of service in excess of
30. Any service credit established as a noncovered employee
shall be considered in determining the applicable
percentages.
(c) For a member with 30 but less than 35 years of
creditable service retiring after attaining age 55 but before
age 60, the retirement annuity shall be reduced by 1/2 of 1%
for each month that the member's age is under age 60 at the
time of retirement.
(d) A retirement annuity shall not exceed 75% of final
average compensation, subject to such extension as may result
from the application of Section 14-114 or Section 14-115.
(e) The retirement annuity payable to any covered
employee who is a member of the System and in service on
January 1, 1969, or in service thereafter in 1969 as a result
of legislation enacted by the Illinois General Assembly
transferring the member to State employment from county
employment in a county Department of Public Aid in counties
of 3,000,000 or more population, under a plan of coordination
with the Old Age, Survivors and Disability provisions
thereof, if not fully insured for Old Age Insurance payments
under the Federal Old Age, Survivors and Disability Insurance
provisions at the date of acceptance of a retirement annuity,
shall not be less than the amount for which the member would
have been eligible if coordination were not applicable.
(f) The retirement annuity payable to any covered
employee who is a member of the System and in service on
January 1, 1969, or in service thereafter in 1969 as a result
of the legislation designated in the immediately preceding
paragraph, if fully insured for Old Age Insurance payments
under the federal Social Security Act at the date of
acceptance of a retirement annuity, shall not be less than an
amount which when added to the Primary Insurance Benefit
payable to the member upon attainment of age 65 under such
federal Act, will equal the annuity which would otherwise be
payable if the coordinated plan of coverage were not
applicable.
(g) In the case of a member who is a noncovered
employee, the retirement annuity for membership service as a
full-time security employee of the Department of Corrections
or security employee of the Department of Mental Health and
Developmental Disabilities shall be 1.9% of final average
compensation for each of the first 10 years of service; 2.1%
for each of the next 10 years of service; 2.25% for each year
of service in excess of 20 but not exceeding 30; and 2.5% for
each year in excess of 30; except that the annuity may be
calculated under subsection (a) rather than this subsection
(g) if the resulting annuity is greater.
(h) In the case of a member who is a covered employee,
the retirement annuity for membership service as a full-time
security employee of the Department of Corrections or
security employee of the Department of Mental Health and
Developmental Disabilities shall be 1.67% of final average
compensation for each of the first 10 years of service; 1.90%
for each of the next 10 years of service; 2.10% for each year
of service in excess of 20 but not exceeding 30; and 2.30%
for each year in excess of 30.
(i) For the purposes of this Section and Section 14-133
of this Act, the term "security employee of the Department of
Corrections" and the term "security employee of the
Department of Mental Health and Developmental Disabilities"
shall have the meanings ascribed to them in subsection (c) of
Section 14-110.
(j) The retirement annuity computed pursuant to
paragraphs (g) or (h) shall be applicable only to those
security employees of the Department of Corrections and
security employees of the Department of Mental Health and
Developmental Disabilities who have at least 20 years of
membership service and who are not eligible for the
alternative retirement annuity provided under Section 14-110.
However, persons transferring to this System under Section
14-108.2 who have service credit under Article 16 of this
Code may count such service toward establishing their
eligibility under the 20-year service requirement of this
subsection; but such service may be used only for
establishing such eligibility, and not for the purpose of
increasing or calculating any benefit.
(k) (Blank). In the case of a member who has at least 10
years of creditable service as a court reporter, the
retirement annuity for service as a court reporter shall be
2.2% of final average compensation for each year of such
service as a noncovered employee, and 1.5% of final average
compensation for each year of such service as a covered
employee.
(l) The changes to this Section made by this amendatory
Act of 1997 (changing certain retirement annuity formulas
from a stepped rate to a flat rate) apply to members who
retire on or after January 1, 1998, without regard to whether
employment terminated before the effective date of this
amendatory Act of 1997. An annuity shall not be calculated
in steps by using the new flat rate for some steps and the
superseded stepped rate for other steps of the same type of
service.
(Source: P.A. 86-272; 86-273; 86-1028.)
(Text of Section after amendment by P.A. 89-507)
Sec. 14-108. Amount of retirement annuity. A member who
has contributed to the System for at least 12 months, shall
be entitled to a prior service annuity for each year of
certified prior service credited to him, except that a member
shall receive 1/3 of the prior service annuity for each year
of service for which contributions have been made and all of
such annuity shall be payable after the member has made
contributions for a period of 3 years. Proportionate amounts
shall be payable for service of less than a full year after
completion of at least 12 months.
The total period of service to be considered in
establishing the measure of prior service annuity shall
include service credited in the Teachers' Retirement System
of the State of Illinois and the State Universities
Retirement System for which contributions have been made by
the member to such systems; provided that at least 1 year of
the total period of 3 years prescribed for the allowance of a
full measure of prior service annuity shall consist of
membership service in this system for which credit has been
granted.
(a) In the case of a member who retires on or after
January 1, 1998 and is a noncovered employee, the retirement
annuity for membership service and prior service shall be
2.2% 1.67% of final average compensation for each of the
first 10 years of service; 1.90% for each of the next 10
ears of service; 2.10% for each year of service in excess of
20 but not exceeding 30; and 2.30% for each year in excess of
30. Any service credit established as a covered employee
shall be considered in determining the applicable percentages
and computed as stated in paragraph (b).
(b) In the case of a member who retires on or after
January 1, 1998 and is a covered employee, the retirement
annuity for membership service and prior service shall be
computed as stated in paragraph (a) for all service credit
established as a noncovered employee; for service credit
established as a covered employee it shall be 1.67% of final
average compensation 1% for each of the first 10 years of
service; 1.10% for each of the next 10 years of service;
1.30% for each year of service in excess of 20 but not
exceeding 30; and 1.50% for each year of service in excess of
30. Any service credit established as a noncovered employee
shall be considered in determining the applicable
percentages.
(c) For a member with 30 but less than 35 years of
creditable service retiring after attaining age 55 but before
age 60, the retirement annuity shall be reduced by 1/2 of 1%
for each month that the member's age is under age 60 at the
time of retirement.
(d) A retirement annuity shall not exceed 75% of final
average compensation, subject to such extension as may result
from the application of Section 14-114 or Section 14-115.
(e) The retirement annuity payable to any covered
employee who is a member of the System and in service on
January 1, 1969, or in service thereafter in 1969 as a result
of legislation enacted by the Illinois General Assembly
transferring the member to State employment from county
employment in a county Department of Public Aid in counties
of 3,000,000 or more population, under a plan of coordination
with the Old Age, Survivors and Disability provisions
thereof, if not fully insured for Old Age Insurance payments
under the Federal Old Age, Survivors and Disability Insurance
provisions at the date of acceptance of a retirement annuity,
shall not be less than the amount for which the member would
have been eligible if coordination were not applicable.
(f) The retirement annuity payable to any covered
employee who is a member of the System and in service on
January 1, 1969, or in service thereafter in 1969 as a result
of the legislation designated in the immediately preceding
paragraph, if fully insured for Old Age Insurance payments
under the Federal Social Security Act at the date of
acceptance of a retirement annuity, shall not be less than an
amount which when added to the Primary Insurance Benefit
payable to the member upon attainment of age 65 under such
Federal Act, will equal the annuity which would otherwise be
payable if the coordinated plan of coverage were not
applicable.
(g) In the case of a member who is a noncovered
employee, the retirement annuity for membership service as a
full-time security employee of the Department of Corrections
or security employee of the Department of Human Services
shall be 1.9% of final average compensation for each of the
first 10 years of service; 2.1% for each of the next 10 years
of service; 2.25% for each year of service in excess of 20
but not exceeding 30; and 2.5% for each year in excess of 30;
except that the annuity may be calculated under subsection
(a) rather than this subsection (g) if the resulting annuity
is greater.
(h) In the case of a member who is a covered employee,
the retirement annuity for membership service as a full-time
security employee of the Department of Corrections or
security employee of the Department of Human Services shall
be 1.67% of final average compensation for each of the first
10 years of service; 1.90% for each of the next 10 years of
service; 2.10% for each year of service in excess of 20 but
not exceeding 30; and 2.30% for each year in excess of 30.
(i) For the purposes of this Section and Section 14-133
of this Act, the term "security employee of the Department of
Corrections" and the term "security employee of the
Department of Human Services" shall have the meanings
ascribed to them in subsection (c) of Section 14-110.
(j) The retirement annuity computed pursuant to
paragraphs (g) or (h) shall be applicable only to those
security employees of the Department of Corrections and
security employees of the Department of Human Services who
have at least 20 years of membership service and who are not
eligible for the alternative retirement annuity provided
under Section 14-110. However, persons transferring to this
System under Section 14-108.2 who have service credit under
Article 16 of this Code may count such service toward
establishing their eligibility under the 20-year service
requirement of this subsection; but such service may be used
only for establishing such eligibility, and not for the
purpose of increasing or calculating any benefit.
(k) (Blank). In the case of a member who has at least 10
years of creditable service as a court reporter, the
retirement annuity for service as a court reporter shall be
2.2% of final average compensation for each year of such
service as a noncovered employee, and 1.5% of final average
compensation for each year of such service as a covered
employee.
(l) The changes to this Section made by this amendatory
Act of 1997 (changing certain retirement annuity formulas
from a stepped rate to a flat rate) apply to members who
retire on or after January 1, 1998, without regard to whether
employment terminated before the effective date of this
amendatory Act of 1997. An annuity shall not be calculated
in steps by using the new flat rate for some steps and the
superseded stepped rate for other steps of the same type of
service.
(Source: P.A. 89-507, eff. 7-1-97.)
(40 ILCS 5/14-131) (from Ch. 108 1/2, par. 14-131)
Sec. 14-131. Contributions by State.
(a) The State shall make contributions to the System by
appropriations of amounts which, together with other employer
contributions from trust, federal, and other funds, employee
contributions, investment income, and other income, will be
sufficient to meet the cost of maintaining and administering
the System on a 90% funded basis in accordance with actuarial
recommendations.
For the purposes of this Section and Section 14-135.08,
references to State contributions refer only to employer
contributions and do not include employee contributions that
are picked up or otherwise paid by the State or a department
on behalf of the employee.
(b) The Board shall determine the total amount of State
contributions required for each fiscal year on the basis of
the actuarial tables and other assumptions adopted by the
Board, using the formula in subsection (e).
The Board shall also determine a State contribution rate
for each fiscal year, expressed as a percentage of payroll,
based on the total required State contribution for that
fiscal year (less the amount received by the System from
appropriations under Section 8.12 of the State Finance Act
and Section 1 of the State Pension Funds Continuing
Appropriation Act, if any, for the fiscal year ending on the
June 30 immediately preceding the applicable November 15
certification deadline), the estimated payroll (including all
forms of compensation) for personal services rendered by
eligible employees, and the recommendations of the actuary.
For the purposes of this Section and Section 14.1 of the
State Finance Act, the term "eligible employees" includes
employees who participate in the System, persons who may
elect to participate in the System but have not so elected,
persons who are serving a qualifying period that is required
for participation, and annuitants employed by a department as
described in subdivision (a)(1) or (a)(2) of Section 14-111.
(c) Contributions shall be made by the several
departments for each pay period by warrants drawn by the
State Comptroller against their respective funds or
appropriations based upon vouchers stating the amount to be
so contributed. These amounts shall be based on the full
rate certified by the Board under Section 14-135.08 for that
fiscal year.
(d) If an employee is paid from trust funds or federal
funds, the department or other employer shall pay employer
contributions from those funds to the System at the certified
rate, unless the terms of the trust or the federal-State
agreement preclude the use of the funds for that purpose, in
which case the required employer contributions shall be paid
by the State.
(e) For State fiscal years 2011 through 2045, the
minimum contribution to the System to be made by the State
for each fiscal year shall be an amount determined by the
System to be sufficient to bring the total assets of the
System up to 90% of the total actuarial liabilities of the
System by the end of State fiscal year 2045. In making these
determinations, the required State contribution shall be
calculated each year as a level percentage of payroll over
the years remaining to and including fiscal year 2045 and
shall be determined under the projected unit credit actuarial
cost method.
For State fiscal years 1996 through 2010, the State
contribution to the System, as a percentage of the applicable
employee payroll, shall be increased in equal annual
increments so that by State fiscal year 2011, the State is
contributing at the rate required under this Section; except
that (i) for State fiscal year 1998, for all purposes of this
Code and any other law of this State, the certified
percentage of the applicable employee payroll shall be 5.052%
for employees earning eligible creditable service under
Section 14-110 and 6.500% for all other employees,
notwithstanding any contrary certification made under Section
14-135.08 before the effective date of this amendatory Act of
1997, and (ii) in the following specified State fiscal years,
the State contribution to the System shall not be less than
the following indicated percentages of the applicable
employee payroll, even if the indicated percentage will
produce a State contribution in excess of the amount
otherwise required under this subsection and subsection (a):
9.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in
FY 2002; 10.6% in FY 2003; 10.8% in FY 2004; 11.0% in FY
2005; 11.2% in FY 2006; 11.4% in FY 2007; 11.6% in FY 2008;
and 11.8% in FY 2009.
Beginning in State fiscal year 2046, the minimum State
contribution for each fiscal year shall be the amount needed
to maintain the total assets of the System at 90% of the
total actuarial liabilities of the System.
(Source: P.A. 88-593, eff. 8-22-94; 89-136, eff. 7-14-95.)
(40 ILCS 5/15-134) (from Ch. 108 1/2, par. 15-134)
Sec. 15-134. Participant.
(a) Each person shall, as a condition of employment,
become a participant and be subject to this Article on the
date that he or she becomes an employee.
An employee who becomes a participant shall continue to
be a participant until he or she becomes an annuitant, dies
or accepts a refund of contributions, except that a person
shall not be deemed a participant while participating in an
optional program for part-time workers established under
Section 15-158.1 or participating in an optional program for
employees established under Section 15-158.2.
(b) A person employed concurrently by 2 or more
employers is eligible to participate in the system on
compensation received from all employers; however, his or her
combined basic compensation and combined earnings shall not
exceed the basic compensation and earnings which would have
been payable for full-time employment by the employer under
which the employee's basic compensation is the highest.
However, effective for all employment on or after July 1,
1991, where a person is employed to render service to one
employer during an academic or summer term and is employed by
another employer to render service to it during the
succeeding, nonoverlapping academic or summer term, then
exclusively for the purposes of this Section, the person
shall be considered to be successively employed by more than
one employer, rather than concurrently employed by 2 or more
employers.
(Source: P.A. 89-430, eff. 12-15-95.)
(40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
Sec. 15-135. Retirement annuities - Conditions.
(a) A participant who retires in one of the following
specified years with the specified amount of 35 or more years
of service is entitled to a retirement annuity at any age:
35 years if retirement is in 1997 or before;
34 years if retirement is in 1998;
33 years if retirement is in 1999;
32 years if retirement is in 2000;
31 years if retirement is in 2001;
30 years if retirement is in 2002;
35 years if retirement is in 2003 or later.
A participant with 8 or more years of service after
September 1, 1941, is entitled to a retirement annuity on or
after attainment of age 55.
A participant with at least 5 but less than 8 years of
service after September 1, 1941, is entitled to a retirement
annuity on or after attainment of age 62.
A participant who has at least 25 years of service in
this system as a police officer or firefighter is entitled to
a retirement annuity on or after the attainment of age 50, if
Rule 4 of Section 15-136 is applicable to the participant.
(b) The annuity payment period shall begin on the date
specified by the participant submitting a written
application, which date shall not be prior to termination of
employment or more than one year before the application is
received by the board; however, if the participant is not an
employee on April 1 following the attainment of age 70 1/2,
the annuity payment period shall begin on that date.
(c) An annuity is not payable if the amount provided
under Section 15-136 is less than $10 per month.
(Source: P.A. 86-273.)
(40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
Sec. 15-136. Retirement annuities - Amount.
(a) The amount of the retirement annuity shall be
determined by whichever of the following rules is applicable
and provides the largest annuity:
Rule 1: The retirement annuity shall be 1.67% of final
rate of earnings for each of the first 10 years of service,
1.90% for each of the next 10 years of service, 2.10% for
each year of service in excess of 20 but not exceeding 30,
and 2.30% for each year in excess of 30; or for persons who
retire on or after January 1, 1998, 2.2% of the final rate of
earnings for each year of service.
Rule 2: The retirement annuity shall be the sum of the
following, determined from amounts credited to the
participant in accordance with the actuarial tables and the
prescribed rate of interest in effect at the time the
retirement annuity begins:
(i) The normal annuity which can be provided on an
actuarially actuarial equivalent basis, by the
accumulated normal contributions as of the date the
annuity begins; and
(ii) an annuity from employer contributions of an
amount which can be provided on an actuarially equivalent
basis from the accumulated normal contributions made by
the participant under Section 15-113.6 and Section
15-113.7 plus 1.4 times all other accumulated normal
contributions made by the participant.
Rule 3: The retirement annuity of a participant who is
employed at least one-half time during the period on which
his or her final rate of earnings is based, shall be equal to
the participant's years of service not to exceed 30,
multiplied by (1) $96 if the participant's final rate of
earnings is less than $3,500, (2) $108 if the final rate of
earnings is at least $3,500 but less than $4,500, (3) $120 if
the final rate of earnings is at least $4,500 but less than
$5,500, (4) $132 if the final rate of earnings is at least
$5,500 but less than $6,500, (5) $144 if the final rate of
earnings is at least $6,500 but less than $7,500, (6) $156 if
the final rate of earnings is at least $7,500 but less than
$8,500, (7) $168 if the final rate of earnings is at least
$8,500 but less than $9,500, and (8) $180 if the final rate
of earnings is $9,500 or more.
Rule 4: A participant who is at least age 50 and has 25
or more years of service as a police officer or firefighter,
and a participant who is age 55 or over and has at least 20
but less than 25 years of service as a police officer or
firefighter, shall be entitled to a retirement annuity of
2 1/4% of the final rate of earnings for each of the first 10
years of service as a police officer or firefighter, 2 1/2%
for each of the next 10 years of service as a police officer
or firefighter, and 2 3/4% for each year of service as a
police officer or firefighter in excess of 20. The
retirement annuity for all other service shall be computed
under Rule 1.
(b) The retirement annuity provided under Rules 1 and 3
above shall be reduced by 1/2 of 1% for each month the
participant is under age 60 at the time of retirement.
However, this reduction shall not apply in the following
cases:
(1) For a disabled participant whose disability
benefits have been discontinued because he or she has
exhausted eligibility for disability benefits under
clause (6) (5) of Section 15-152;
(2) For a participant who has at least the number
of 35 years of service required to retire at any age
under subsection (a) of Section 15-135; or
(3) For that portion of a retirement annuity which
has been provided on account of service of the
participant during periods when he or she performed the
duties of a police officer or firefighter, if these
duties were performed for at least 5 years immediately
preceding the date the retirement annuity is to begin.
(c) The maximum retirement annuity provided under Rules
1, 2, and 4 shall be the lesser of (1) the annual limit of
benefits as specified in Section 415 of the Internal Revenue
Code of 1986, as such Section may be amended from time to
time and as such benefit limits shall be adjusted by the
Commissioner of Internal Revenue, and (2) 80% 75% of final
rate of earnings; however, this limitation of 75% of final
rate of earnings shall not apply to a person who is a
participant or annuitant on September 15, 1977 if it results
in a retirement annuity less than that which is payable to
the annuitant or which would have been payable to the
participant under the provisions of this Article in effect on
June 30, 1977.
(d) An annuitant whose status as an employee terminates
after August 14, 1969 shall receive automatic increases in
his or her retirement annuity as follows:
Effective January 1 immediately following the date the
retirement annuity begins, the annuitant shall receive an
increase in his or her monthly retirement annuity of 0.125%
of the monthly retirement annuity provided under Rule 1, Rule
2, Rule 3, or Rule 4, contained in this Section, multiplied
by the number of full months which elapsed from the date the
retirement annuity payments began to January 1, 1972, plus
0.1667% of such annuity, multiplied by the number of full
months which elapsed from January 1, 1972, or the date the
retirement annuity payments began, whichever is later, to
January 1, 1978, plus 0.25% of such annuity multiplied by the
number of full months which elapsed from January 1, 1978, or
the date the retirement annuity payments began, whichever is
later, to the effective date of the increase.
The annuitant shall receive an increase in his or her
monthly retirement annuity on each January 1 thereafter
during the annuitant's life of 3% of the monthly annuity
provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
this Section. The change made under this subsection by P.A.
81-970 is effective January 1, 1980 and applies to each
annuitant whose status as an employee terminates before or
after that date.
Beginning January 1, 1990, all automatic annual increases
payable under this Section shall be calculated as a
percentage of the total annuity payable at the time of the
increase, including all increases previously granted under
this Article. The change made in this subsection by P.A.
85-1008 is effective January 26, 1988, and is applicable
without regard to whether status as an employee terminated
before that date.
(e) If, on January 1, 1987, or the date the retirement
annuity payment period begins, whichever is later, the sum of
the retirement annuity provided under Rule 1 or Rule 2 of
this Section and the automatic annual increases provided
under the preceding subsection or Section 15-136.1, amounts
to less than the retirement annuity which would be provided
by Rule 3, the retirement annuity shall be increased as of
January 1, 1987, or the date the retirement annuity payment
period begins, whichever is later, to the amount which would
be provided by Rule 3 of this Section. Such increased amount
shall be considered as the retirement annuity in determining
benefits provided under other Sections of this Article. This
paragraph applies without regard to whether status as an
employee terminated before the effective date of this
amendatory Act of 1987, provided that the annuitant was
employed at least one-half time during the period on which
the final rate of earnings was based.
(f) A participant is entitled to such additional annuity
as may be provided on an actuarial equivalent basis, by any
accumulated additional contributions to his or her credit.
However, the additional contributions made by the participant
toward the automatic increases in annuity provided under this
Section shall not be taken into account in determining the
amount of such additional annuity.
(g) If, (1) by law, a function of a governmental unit,
as defined by Section 20-107 of this Code, is transferred in
whole or in part to an employer, and (2) a participant
transfers employment from such governmental unit to such
employer within 6 months after the transfer of the function,
and (3) the sum of (A) the annuity payable to the participant
under Rule 1, 2, or 3 of this Section (B) all proportional
annuities payable to the participant by all other retirement
systems covered by Article 20, and (C) the initial primary
insurance amount to which the participant is entitled under
the Social Security Act, is less than the retirement annuity
which would have been payable if all of the participant's
pension credits validated under Section 20-109 had been
validated under this system, a supplemental annuity equal to
the difference in such amounts shall be payable to the
participant.
(h) On January 1, 1981, an annuitant who was receiving a
retirement annuity on or before January 1, 1971 shall have
his or her retirement annuity then being paid increased $1
per month for each year of creditable service. On January 1,
1982, an annuitant whose retirement annuity began on or
before January 1, 1977, shall have his or her retirement
annuity then being paid increased $1 per month for each year
of creditable service.
(i) On January 1, 1987, any annuitant whose retirement
annuity began on or before January 1, 1977, shall have the
monthly retirement annuity increased by an amount equal to 8¢
per year of creditable service times the number of years that
have elapsed since the annuity began.
(Source: P.A. 86-272; 86-273; 86-1028; revised 5-17-96.)
Section 95. No acceleration or delay. Where this Act
makes changes in a statute that is represented in this Act by
text that is not yet or no longer in effect (for example, a
Section represented by multiple versions), the use of that
text does not accelerate or delay the taking effect of (i)
the changes made by this Act or (ii) provisions derived from
any other Public Act.
Section 99. Effective date. This Act takes effect upon
becoming law.