093_HB0581sam001

 










                                     LRB093 05642 EFG 17131 a

 1                     AMENDMENT TO HOUSE BILL 581

 2        AMENDMENT NO.     .  Amend House Bill  581  by  replacing
 3    the title with the following:
 4        "AN ACT in relation to public employee benefits."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section 5.  The Illinois  Pension  Code  is  amended  by
 8    changing  Sections  2-110,  2-110.1, 2-117, 2-119.1, 4-109.1,
 9    4-109.2, 4-114, 5-129.1, 5-234, 7-132, 7-141.1, 7-154, 8-172,
10    14-103.05, 14-104, 14-110, 14-119,  14-121,  16-106,  16-113,
11    16-127,  16-129.1,  16-133.2,  16-133.3,  16-136.4, 16-149.2,
12    16-150, 16-151, 16-182, 16-184, 16-185, 16-186.3, and  17-122
13    and  adding  Sections  6-124.1, 8-172.1, 14-104.12, 17-116.7,
14    and 17-121.1 as follows:

15        (40 ILCS 5/2-110) (from Ch. 108 1/2, par. 2-110)
16        Sec. 2-110.  Service.
17        (A)  "Service" means the period beginning on the day when
18    a person first became a member, and ending on the date  under
19    consideration,   excluding   all   intervening   periods   of
20    nonmembership following resignation or expiration of any term
21    of office.
 
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 1        (B)  "Service" includes:
 2             (a)  Military  service  during  war  by a person who
 3        entered such service while  a  member,  whether  rendered
 4        before  or  after  the  expiration of any term of office;
 5        plus up to 2 years of military service that need not have
 6        immediately followed service as a member,  and  need  not
 7        have been served during wartime, provided that the member
 8        (or  former  member  who  has  not yet begun to receive a
 9        retirement annuity) makes contributions to the System for
10        such service (1) at the rates provided in  Section  2-126
11        based  upon the member's rate of compensation on the last
12        date as a participant prior to such military service,  or
13        on  the  first  date as a participant after such military
14        service, whichever is greater, plus  (2)  if  payment  is
15        made  on or after February 1, 2004 May 1, 1993, an amount
16        determined by the Board to be  equal  to  the  employer's
17        normal  cost  of  the  benefits accrued for such military
18        service, plus (3) interest at the effective rate from the
19        date the person last became a participant in  the  System
20        or  November  19,  1991,  whichever  is  later,  of first
21        membership in the System to the date of payment.
22             A former member who has not yet begun to  receive  a
23        retirement  annuity may establish military service credit
24        as provided in this subdivision (a).  The change  in  the
25        manner   of  calculating  payment  for  certain  military
26        service credit made by this amendatory Act  of  the  93rd
27        General  Assembly  applies  to  credit  established on or
28        after its effective date by an active participant in  the
29        System  or  a  former  member  who  has  not yet begun to
30        receive a retirement annuity, but it does not entitle any
31        person to a refund of contributions already paid.
32             The amendment to this  subdivision  (B)(a)  made  by
33        this  amendatory  Act  of 1993 shall apply to persons who
34        are  active  contributors  to  the  System  on  or  after
 
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 1        November  30,  1992.   A  person  who   was   an   active
 2        contributor  to the System on November 30, 1992 but is no
 3        longer  an  active  contributor  may  apply  to  purchase
 4        military credit under this subdivision (B)(a)  within  60
 5        days  after  the effective date of this amendatory Act of
 6        1993; if  the  person  is  an  annuitant,  the  resulting
 7        increase  in  annuity  shall begin to accrue on the first
 8        day of  the  month  following  the  month  in  which  the
 9        required  payment  is received by the System.  The change
10        in  the  required  contribution  for  purchased  military
11        credit made by this amendatory  Act  of  1993  shall  not
12        entitle  any  person to a refund of contributions already
13        paid.
14             (b)  Service as a judge of a court  of  this  State,
15        but  credit  for such service is subject to the following
16        conditions: (1) such person shall have been a member  for
17        at  least  4  years  and  contributed  to  the system for
18        service as a judge subsequent to July  8,  1947,  at  the
19        rates herein provided, including interest at 2% per annum
20        to  the  date  of  payment  based on the salary in effect
21        during such service; (2) the member was not  an  eligible
22        member  of nor entitled to credit for such service in any
23        other retirement system in the State maintained in  whole
24        or  in  part  by public contributions; and (3) the last 4
25        years of service  prior  to  retirement  on  annuity  was
26        rendered while a member.
27             (c)  Service   as  a  participating  employee  under
28        Articles 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16,
29        17 or 18 of the Illinois Pension Code.  Credit  for  such
30        service  may be established by a member and, if permitted
31        by  the  credit  transfer  Section  of  the   appropriate
32        Article,  by a former member who is not yet an annuitant,
33        and is subject to the following conditions:  (1) that the
34        credits accrued under the above mentioned  Articles  have
 
                            -4-      LRB093 05642 EFG 17131 a
 1        been  transferred to this system; and (2) that the member
 2        has contributed to this system an amount equal to (i) the
 3        contribution rate in effect for participants at the  date
 4        of  membership  in  this  system multiplied by the salary
 5        then in effect for members of the  General  Assembly  for
 6        each   year   of   service  for  which  credit  is  being
 7        transferred, plus (ii) the State's share  of  the  normal
 8        cost of benefits under this system expressed as a percent
 9        of  payroll,  as determined by the system's actuary as of
10        the date of the participant's membership in this  system,
11        multiplied  by  the  salary then in effect for members of
12        the General Assembly, for each year of service for  which
13        credit is being transferred, plus (iii) interest on items
14        (i)  and  (ii) above at 6% per annum compounded annually,
15        from the date of membership to the date of payment by the
16        participant, less (iv) the  amount  transferred  to  this
17        system on behalf of the participant on account of service
18        rendered  while  a  participant under the above mentioned
19        Articles.
20             (d)  Service, before October 1, 1975, as an  officer
21        elected  by  the people of Illinois, for which creditable
22        service is required to  be  transferred  from  the  State
23        Employees'  Retirement  System  to  this  system  by this
24        amendatory Act of 1975.
25             (e)  Service rendered prior to January 1, 1964, as a
26        justice of the peace or police magistrate or as  a  civil
27        referee in the Municipal Court of Chicago, but credit for
28        such service may not be granted until the member has paid
29        to  the  system  an  amount equal to (1) the contribution
30        rate for participants at the date of membership  in  this
31        system  multiplied  by  the  salary  then  in  effect for
32        members of the General Assembly for each year of  service
33        for  which  credit  is  being  transferred,  plus (2) the
34        State's share of the normal cost of benefits  under  this
 
                            -5-      LRB093 05642 EFG 17131 a
 1        system  expressed  as a percent of payroll, as determined
 2        by  the  system's  actuary  as  of  the   date   of   the
 3        participant's   membership  in this system, multiplied by
 4        the salary then in effect  for  members  of  the  General
 5        Assembly,  for  each  year of service for which credit is
 6        allowed, plus, (3) interest on (1) and (2)  above  at  6%
 7        per annum compounded annually from the date of membership
 8        to  the  date  of  payment  by  the  member.   However, a
 9        participant may not receive more than 6 years  of  credit
10        for  such service nor may any member receive credit under
11        this paragraph for service  for  which  credit  has  been
12        granted  in  any  other public pension fund or retirement
13        system in the State.
14             (f)  Service before January 16, 1981, as an  officer
15        elected  by  the people of Illinois, for which creditable
16        service  is  transferred  from   the   State   Employees'
17        Retirement System to this system.
18        (C)  Service  during  any  fraction  of  a month shall be
19    considered as a month of service.
20          Service includes the total period of time for  which  a
21    participant is elected as a member or officer, even though he
22    or   she  does  not  complete  the  term  because  of  death,
23    resignation, judicial decision, or operation of law, provided
24    that the contributions required under this Article  for  such
25    entire period of office have been made by or on behalf of the
26    participant.  In  the  case  of  a  participant  appointed or
27    elected to fill a vacancy, service includes the total  period
28    from  January  1  of  the  year  in  which his or her service
29    commences to the end of the term in which the vacancy occurs,
30    provided  the  participant  contributes  in  the   year    of
31    appointment  an  amount equal to the contributions that would
32    have been required had the participant  received  salary  for
33    the  entire  year.  The  foregoing  provisions  relating to a
34    participant appointed or elected to fill a vacancy shall  not
 
                            -6-      LRB093 05642 EFG 17131 a
 1    apply   if   the  participant  was  a  member  of  the  other
 2    legislative chamber at the time of appointment or election.
 3        (D)  Notwithstanding  the  other   provisions   of   this
 4    Section,  if  application  to  transfer  or establish service
 5    credit under paragraph (c) or (e) of subsection (B)  of  this
 6    Section  is made between January 1, 2004 1992 and February 1,
 7    2004 1993, the contribution required for such credit shall be
 8    an amount equal to (1) the contribution rate  in  effect  for
 9    participants  at  the  date  of  membership  in  this  system
10    multiplied  by  the  salary then in effect for members of the
11    General Assembly for each year of service for which credit is
12    being granted, plus (2) interest  thereon  at  6%  per  annum
13    compounded  annually, from the date of membership to the date
14    of payment by the member, less (3) any amount transferred  to
15    this  system  on  behalf  of  the  member  on account of such
16    service credit.
17    (Source: P.A. 86-27; 86-1028; 87-794; 87-1265.)

18        (40 ILCS 5/2-110.1) (from Ch. 108 1/2, par. 2-110.1)
19        Sec.  2-110.1.   Service  credit  for   elected   county,
20    township or municipal official.
21        (a)  An  active  participant having no creditable service
22    as a participating employee under Article 7 of this Code  may
23    establish  service  credit  in this system for periods during
24    which the participant held an elective office  in  a  county,
25    township  or municipality, (including the full term for which
26    elected if he or she resigned such office to enter the  armed
27    forces  of  the  United  States),  provided the member cannot
28    establish service credit under Article  7  for  such  periods
29    because the county, township or municipality did not and does
30    not subscribe to coverage for that office under that Article.
31    Credit  for such service may be established in this system by
32    the participant paying to this system an amount equal to  (1)
33    the  contribution rate in effect for participants at the date
 
                            -7-      LRB093 05642 EFG 17131 a
 1    of membership in this system multiplied by the salary then in
 2    effect for the members of the General Assembly for each  year
 3    of  service for which credit is allowed, plus (2) the State's
 4    share of the  normal  cost  of  benefits  under  this  system
 5    expressed  as  a  percent  of  payroll,  as determined by the
 6    system's  actuary  as  of  the  date  of  the   participant's
 7    membership  in  this  system multiplied by the salary then in
 8    effect for members of the General Assembly, for each year  of
 9    service for which credit is allowed, plus (3) interest on (1)
10    and  (2)  above  at 4% per annum compounded annually from the
11    date of membership to the date of payment by the participant.
12        However, if application for such credit is  made  between
13    January 1, 1992 and April 1, 1992, the applicant need not pay
14    the  amount  indicated in item (2) above, but only the sum of
15    items (1) and (3).
16        (b)  The surviving spouse of a participant  who  died  in
17    service  may  establish  service  credit  in  this System for
18    periods during which the participant held an elective  office
19    in  a municipality but did not establish service credit under
20    Article 7 or any other provision of this Code, by applying to
21    the System in writing within 60 days after the effective date
22    of this amendatory Act  of  the  93rd  General  Assembly  and
23    paying  to  this  System  an amount equal to the contribution
24    rate in effect for participants at the deceased participant's
25    date of first membership in this  System  multiplied  by  the
26    salary then in effect for the members of the General Assembly
27    for  each  year  of service for which credit is allowed, plus
28    interest at the rate of 4% per  annum,  compounded  annually,
29    from  the date of the deceased participant's first membership
30    to  the  date  of  payment  by  the  surviving  spouse.   The
31    surviving spouse's annuity shall be  recalculated,  with  the
32    resulting  increase  accruing  from the first annuity payment
33    date following the date upon which the  required  payment  is
34    received by the System.
 
                            -8-      LRB093 05642 EFG 17131 a
 1    (Source: P.A. 87-794.)

 2        (40 ILCS 5/2-117) (from Ch. 108 1/2, par. 2-117)
 3        Sec. 2-117.  Participants - Election not to participate.
 4        (a)  Every  person  who was a member on November 1, 1947,
 5    or in military service  on  such  date,  is  subject  to  the
 6    provisions  of  this  system beginning upon such date, unless
 7    prior to such date he or she filed with the board  a  written
 8    notice of election not to participate.
 9        Every person who becomes a member after November 1, 1947,
10    and  who  is  then  not  a  participant becomes a participant
11    beginning upon the date of becoming a member  unless,  within
12    24  months from that date, he or she has filed with the board
13    a written notice of election not to participate.
14        (b)  A member who has filed notice of an election not  to
15    participate  (and  a  former  member who has not yet begun to
16    receive a retirement annuity under this Article) may become a
17    participant with respect to the period for which  the  member
18    elected not to participate upon filing with the board, before
19    January  1,  2004  April 1, 1993, a written rescission of the
20    election not to participate.   Upon  contributing  an  amount
21    equal  to  the  contributions  he or she would have made as a
22    participant from November 1, 1947, or the date of becoming  a
23    member,  whichever  is  later,  to  the  date  of  becoming a
24    participant, with interest at the rate of 4% per annum  until
25    the  contributions  are  paid,  the participant shall receive
26    credit for service as a member  prior  to  the  date  of  the
27    rescission,  both  before  and  after  November 1, 1947.  The
28    required contributions shall be made before  commencement  of
29    the retirement annuity; otherwise no credit for service prior
30    to the date of participation shall be granted.
31    (Source: P.A. 86-273; 87-1265.)

32        (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
 
                            -9-      LRB093 05642 EFG 17131 a
 1        Sec. 2-119.1.  Automatic increase in retirement annuity.
 2        (a)  A  participant  who retires after June 30, 1967, and
 3    who has not received an initial increase under  this  Section
 4    before  the  effective  date  of this amendatory Act of 1991,
 5    shall,  in  January  or  July  next   following   the   first
 6    anniversary of retirement, whichever occurs first, and in the
 7    same  month of each year thereafter, but in no event prior to
 8    age 60, have the amount of the originally granted  retirement
 9    annuity  increased as follows:  for each year through 1971, 1
10    1/2%; for each year from 1972 through 1979, 2%; and for  1980
11    and  each  year thereafter, 3%.  Annuitants who have received
12    an initial  increase  under  this  subsection  prior  to  the
13    effective  date of this amendatory Act of 1991 shall continue
14    to receive their annual increases in the same  month  as  the
15    initial increase.
16        (b)  Beginning January 1, 1990, for eligible participants
17    who  remain in service after attaining 20 years of creditable
18    service, the 3% increases provided under subsection (a) shall
19    begin to accrue on the January 1 next following the date upon
20    which the participant (1) attains age 55, or (2)  attains  20
21    years  of  creditable  service,  whichever  occurs later, and
22    shall continue to accrue while  the  participant  remains  in
23    service;  such increases shall become payable on January 1 or
24    July 1, whichever occurs  first,  next  following  the  first
25    anniversary  of  retirement.   For any person who has service
26    credit in the System for the entire period from  January  15,
27    1969  through  December  31,  1992, regardless of the date of
28    termination of service, the reference to age 55 in clause (1)
29    of this subsection (b) shall be deemed to mean age 50.
30        This subsection (b) does not  apply  to  any  person  who
31    first becomes a member of the System after the effective date
32    of this amendatory Act of the 93rd General Assembly.
33        (c)  The   foregoing  provisions  relating  to  automatic
34    increases are not applicable to  a  participant  who  retires
 
                            -10-     LRB093 05642 EFG 17131 a
 1    before  having  made contributions (at the rate prescribed in
 2    Section 2-126) for automatic  increases  for  less  than  the
 3    equivalent  of  one  full  year.   However,  in  order  to be
 4    eligible for the automatic increases, such a participant  may
 5    make arrangements to pay to the system the amount required to
 6    bring  the  total contributions for the automatic increase to
 7    the equivalent of one year's contributions based upon his  or
 8    her last salary.
 9        (d)  A  participant  who terminated service prior to July
10    1, 1967, with at least 14 years of service is entitled to  an
11    increase  in  retirement annuity beginning January, 1976, and
12    to additional increases in January of each year thereafter.
13        The initial increase shall be 1 1/2%  of  the  originally
14    granted  retirement  annuity multiplied by the number of full
15    years that the  annuitant was  in  receipt  of  such  annuity
16    prior  to  January 1, 1972, plus 2% of the originally granted
17    retirement annuity  for  each  year  after  that  date.   The
18    subsequent annual increases shall be at the rate of 2% of the
19    originally  granted  retirement annuity for each year through
20    1979 and at the rate of 3% for 1980 and thereafter.
21        (e)  Beginning January  1,  1990,  all  automatic  annual
22    increases payable under this Section shall be calculated as a
23    percentage  of  the  total annuity payable at the time of the
24    increase, including previous  increases  granted  under  this
25    Article.
26    (Source: P.A. 86-273; 87-794; 87-1265.)

27        (40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
28        Sec. 4-109.1.  Increase in pension.
29        (a)  Except  as  provided  in subsection (e), the monthly
30    pension of a firefighter who retires after July 1,  1971  and
31    prior to January 1, 1986, shall, upon either the first of the
32    month   following  the  first  anniversary  of  the  date  of
33    retirement if 60 years of age or over at retirement date,  or
 
                            -11-     LRB093 05642 EFG 17131 a
 1    upon  the  first day of the month following attainment of age
 2    60 if it occurs after the first anniversary of retirement, be
 3    increased by 2% of the originally granted monthly pension and
 4    by an additional 2% in each  January  thereafter.   Effective
 5    January  1976, the rate of the annual increase shall be 3% of
 6    the originally granted monthly pension.
 7        (b)  The monthly pension of  a  firefighter  who  retired
 8    from  service  with 20 or more years of service, on or before
 9    July 1, 1971, shall be increased,  in  January  of  the  year
10    following the year of attaining age 65 or in January 1972, if
11    then  over  age  65,  by 2% of the originally granted monthly
12    pension, for  each  year  the  firefighter  received  pension
13    payments.    In  each  January  thereafter,  he  or she shall
14    receive an additional increase of 2% of the original  monthly
15    pension.   Effective  January  1976,  the  rate of the annual
16    increase shall be 3%.
17        (c)  The  monthly  pension  of  a  firefighter   who   is
18    receiving  a  disability  pension under this Article shall be
19    increased, in January of the  year  following  the  year  the
20    firefighter  attains age 60, or in January 1974, if then over
21    age 60, by 2% of the originally granted monthly  pension  for
22    each  year  he  or  she  received  pension payments.  In each
23    January  thereafter,  the  firefighter   shall   receive   an
24    additional  increase  of  2% of the original monthly pension.
25    Effective January 1976, the rate of the annual increase shall
26    be 3%.
27        (c-1)  On  January  1,  1998,  every  child's  disability
28    benefit payable on that date under Section 4-110  or  4-110.1
29    shall  be  increased  by an amount equal to 1/12 of 3% of the
30    amount of the benefit, multiplied by the number of months for
31    which the benefit  has  been  payable.   On  each  January  1
32    thereafter,  every  child's  disability benefit payable under
33    Section 4-110 or 4-110.1 shall be  increased  by  3%  of  the
34    amount of the benefit then being paid, including any previous
 
                            -12-     LRB093 05642 EFG 17131 a
 1    increases  received  under this Article.  These increases are
 2    not subject to any limitation on the maximum  benefit  amount
 3    included in Section 4-110 or 4-110.1.
 4        (c-2)  On January 1, 2004, every pension payable to or on
 5    behalf of a minor or disabled surviving child that is payable
 6    on  that  date  under  Section 4-114 shall be increased by an
 7    amount equal to 1/12 of 3% of  the  amount  of  the  pension,
 8    multiplied  by the number of months for which the benefit has
 9    been payable.  On each January 1  thereafter,  every  pension
10    payable  to  or  on  behalf  of a minor or disabled surviving
11    child that is payable under Section 4-114 shall be  increased
12    by 3% of the amount of the pension then being paid, including
13    any  previous  increases  received under this Article.  These
14    increases are not subject to any limitation  on  the  maximum
15    benefit amount included in Section 4-114.
16        (d)  The  monthly  pension  of  a firefighter who retires
17    after January 1, 1986, shall, upon either the  first  of  the
18    month   following  the  first  anniversary  of  the  date  of
19    retirement if 55 years of age or over, or upon the first  day
20    of  the  month  following  attainment  of age 55 if it occurs
21    after the first anniversary of retirement,  be  increased  by
22    1/12 of 3% of the originally granted monthly pension for each
23    full  month  that has elapsed since the pension began, and by
24    an additional 3% in each January thereafter.
25        The  changes  made  to  this  subsection  (d)   by   this
26    amendatory  Act  of  the  91st  General Assembly apply to all
27    initial increases that become payable under  this  subsection
28    on  or  after  January  1,  1999.  All initial increases that
29    became payable under this subsection on or after  January  1,
30    1999  and  before  the  effective date of this amendatory Act
31    shall be recalculated and the additional amount accruing  for
32    that  period,  if any, shall be payable to the pensioner in a
33    lump sum.
34        (e)  Notwithstanding the provisions  of  subsection  (a),
 
                            -13-     LRB093 05642 EFG 17131 a
 1    upon  the  first  day  of  the  month following (1) the first
 2    anniversary of the date of retirement, or (2) the  attainment
 3    of  age 55, or (3) July 1, 1987, whichever occurs latest, the
 4    monthly pension of a firefighter  who  retired  on  or  after
 5    January  1, 1977 and on or before January 1, 1986 and did not
 6    receive an increase under subsection (a) before July 1, 1987,
 7    shall be increased by 3% of the  originally  granted  monthly
 8    pension for each full year that has elapsed since the pension
 9    began,  and  by  an additional 3% in each January thereafter.
10    The increases provided under this subsection are in  lieu  of
11    the increases provided in subsection (a).
12    (Source: P.A. 90-32, eff. 6-27-97; 91-466, eff. 8-6-99.)

13        (40 ILCS 5/4-109.2) (from Ch. 108 1/2, par. 4-109.2)
14        Sec. 4-109.2.  Minimum pension.
15        (a)  Beginning  January  1,  1984, the minimum disability
16    pension granted under Section 4-110  or  4-111,  the  minimum
17    surviving   spouse's  pension,  and  the  minimum  retirement
18    pension granted to a firefighter with 20  or  more  years  of
19    creditable  service,  shall be $300 per month, without regard
20    to  whether  the  death,  disability  or  retirement  of  the
21    firefighter occurred prior to that date.
22        Beginning July 1, 1987, the  minimum  retirement  pension
23    payable  to a firefighter with 20 or more years of creditable
24    service, the minimum disability pension payable under Section
25    4-110 or 4-111, and the minimum  surviving  spouse's  pension
26    shall be $400 per month, without regard to whether the death,
27    retirement or disability of the firefighter occurred prior to
28    that date.
29        Beginning  July  1,  1993, the minimum retirement pension
30    payable to a firefighter with 20 or more years of  creditable
31    service  and  the minimum surviving spouse's pension shall be
32    $475 per month, without regard to whether the firefighter was
33    in service on or after the effective date of this  amendatory
 
                            -14-     LRB093 05642 EFG 17131 a
 1    Act of 1993.
 2        (b)  Beginning  January  1,  1999, the minimum retirement
 3    pension payable to a firefighter with 20  or  more  years  of
 4    creditable  service,  the  minimum disability pension payable
 5    under Section 4-110,  4-110.1,  or  4-111,  and  the  minimum
 6    surviving  spouse's  pension shall be $600 per month, without
 7    regard to whether the firefighter was in service on or  after
 8    the effective date of this amendatory Act of the 91st General
 9    Assembly.
10        In the case of a pensioner whose pension began before the
11    effective  date  of  this  amendatory  Act  and is subject to
12    increase under this subsection (b), the  pensioner  shall  be
13    entitled to a lump sum payment of the amount of that increase
14    accruing from January 1, 1999 (or the date the pension began,
15    if later) to the effective date of this amendatory Act.
16        (c)  Beginning  January  1,  2000, the minimum retirement
17    pension payable to a firefighter with 20  or  more  years  of
18    creditable  service,  the  minimum disability pension payable
19    under Section 4-110,  4-110.1,  or  4-111,  and  the  minimum
20    surviving  spouse's  pension shall be $800 per month, without
21    regard to whether the firefighter was in service on or  after
22    the effective date of this amendatory Act of the 91st General
23    Assembly.
24        (d)  Beginning  January  1,  2001, the minimum retirement
25    pension payable to a firefighter with 20  or  more  years  of
26    creditable  service,  the  minimum disability pension payable
27    under Section 4-110,  4-110.1,  or  4-111,  and  the  minimum
28    surviving  spouse's pension shall be $1000 per month, without
29    regard to whether the firefighter was in service on or  after
30    the effective date of this amendatory Act of the 91st General
31    Assembly.
32        (e)  Beginning  January  1,  2004, the minimum retirement
33    pension payable to a firefighter with 20  or  more  years  of
34    creditable  service,  the  minimum disability pension payable
 
                            -15-     LRB093 05642 EFG 17131 a
 1    under Section 4-110,  4-110.1,  or  4-111,  and  the  minimum
 2    surviving  spouse's pension shall be $1030 per month, without
 3    regard to whether the firefighter was in service on or  after
 4    the effective date of this amendatory Act of the 93rd General
 5    Assembly.
 6        (f)  Beginning  January  1,  2005, the minimum retirement
 7    pension payable to a firefighter with 20  or  more  years  of
 8    creditable  service,  the  minimum disability pension payable
 9    under Section 4-110,  4-110.1,  or  4-111,  and  the  minimum
10    surviving  spouse's  pension  shall  be  $1060.90  per month,
11    without regard to whether the firefighter was in  service  on
12    or  after  the  effective  date of this amendatory Act of the
13    93rd General Assembly.
14        (g)  Beginning January 1, 2006,  the  minimum  retirement
15    pension  payable  to  a  firefighter with 20 or more years of
16    creditable service, the minimum  disability  pension  payable
17    under  Section  4-110,  4-110.1,  or  4-111,  and the minimum
18    surviving spouse's  pension  shall  be  $1092.73  per  month,
19    without  regard  to whether the firefighter was in service on
20    or after the effective date of this  amendatory  Act  of  the
21    93rd General Assembly.
22        (h)  Beginning  January  1,  2007, the minimum retirement
23    pension payable to a firefighter with 20  or  more  years  of
24    creditable  service,  the  minimum disability pension payable
25    under Section 4-110,  4-110.1,  or  4-111,  and  the  minimum
26    surviving  spouse's  pension  shall  be  $1125.51  per month,
27    without regard to whether the firefighter was in  service  on
28    or  after  the  effective  date of this amendatory Act of the
29    93rd General Assembly.
30        (i)  Beginning January 1, 2008,  the  minimum  retirement
31    pension  payable  to  a  firefighter with 20 or more years of
32    creditable service, the minimum  disability  pension  payable
33    under  Section  4-110,  4-110.1,  or  4-111,  and the minimum
34    surviving spouse's  pension  shall  be  $1159.27  per  month,
 
                            -16-     LRB093 05642 EFG 17131 a
 1    without  regard  to whether the firefighter was in service on
 2    or after the effective date of this  amendatory  Act  of  the
 3    93rd General Assembly.
 4    (Source: P.A. 91-466, eff. 8-6-99.)

 5        (40 ILCS 5/4-114) (from Ch. 108 1/2, par. 4-114)
 6        Sec.  4-114.  Pension to survivors.  If a firefighter who
 7    is not receiving a disability pension under Section 4-110  or
 8    4-110.1  dies  (1) as a result of any illness or accident, or
 9    (2) from any cause while in receipt of a  disability  pension
10    under  this  Article, or (3) during retirement after 20 years
11    service, or (4) while vested for or in receipt of  a  pension
12    payable under subsection (b) of Section 4-109, or (5) while a
13    deferred pensioner, having made all required contributions, a
14    pension  shall  be paid to his or her survivors, based on the
15    monthly salary attached to the firefighter's rank on the last
16    day of service in the fire department, as follows:
17        (a)  To the surviving spouse, a monthly pension of 40% of
18    the monthly salary, and to the guardian of any minor child or
19    children including a child which has been conceived  but  not
20    yet  born,  12%  of  such  monthly salary for each such child
21    until attainment of age 18 or  until  the  child's  marriage,
22    whichever  occurs first.  Beginning July 1, 1993, the monthly
23    pension to the surviving spouse shall be 54% of  the  monthly
24    salary  for  all persons receiving a surviving spouse pension
25    under  this  Article,  regardless  of  whether  the  deceased
26    firefighter was in service on or after the effective date  of
27    this amendatory Act of 1993.
28        Beginning  January  1,  2004,  the  total monthly pension
29    payable under this paragraph (a) to the surviving spouse of a
30    firefighter who died while receiving  a  retirement  pension,
31    including any amount payable on account of children, shall be
32    no  less than 100% of the monthly retirement pension that the
33    deceased firefighter was receiving  at  the  time  of  death,
 
                            -17-     LRB093 05642 EFG 17131 a
 1    including  any increases under Section 4-109.1.  This minimum
 2    applies to all such surviving spouses  who  are  eligible  to
 3    receive a surviving spouse pension, regardless of whether the
 4    deceased firefighter was in service on or after the effective
 5    date of this amendatory Act of the 93rd General Assembly, and
 6    notwithstanding  any  limitation  on  maximum  pension  under
 7    paragraph (d) or any other provision of this Article.
 8        The  pension  to  the surviving spouse shall terminate in
 9    the event of the surviving spouse's remarriage prior to  July
10    1, 1993; remarriage on or after that date does not affect the
11    surviving   spouse's   pension,  regardless  of  whether  the
12    deceased firefighter was in service on or after the effective
13    date of this amendatory Act of 1993.
14        The surviving spouse's pension shall be  subject  to  the
15    minimum established in Section 4-109.2.
16        (b)  Upon  the  death of the surviving spouse leaving one
17    or more minor children, to the  duly  appointed  guardian  of
18    each  such  child,  for  support and maintenance of each such
19    child until the child reaches age 18  or  marries,  whichever
20    occurs first, a monthly pension of 20% of the monthly salary.
21        (c)  If a deceased firefighter leaves no surviving spouse
22    or  unmarried  minor  children  under  age  18,  but leaves a
23    dependent father  or  mother,  to  each  dependent  parent  a
24    monthly pension of 18% of the monthly salary.  To qualify for
25    the  pension,  a  dependent  parent must furnish satisfactory
26    proof that the deceased firefighter was at the time of his or
27    her death the sole supporter of the parent or that the parent
28    was the deceased's dependent for federal income tax purposes.
29        (d)  The total pension provided under paragraphs (a), (b)
30    and (c) of this Section shall not exceed 75% of  the  monthly
31    salary  of  the  deceased  firefighter  (1)  when paid to the
32    survivor of a firefighter who has attained 20 or  more  years
33    of  service credit and who receives or is eligible to receive
34    a retirement pension under this Article, or (2) when paid  to
 
                            -18-     LRB093 05642 EFG 17131 a
 1    the survivor of a firefighter who dies as a result of illness
 2    or   accident,  or  (3)  when  paid  to  the  survivor  of  a
 3    firefighter who dies from any cause while  in  receipt  of  a
 4    disability  pension  under  this Article, or (4) when paid to
 5    the  survivor  of  a  deferred  pensioner.   For  all   other
 6    survivors   of   deceased  firefighters,  the  total  pension
 7    provided under paragraphs (a), (b) and (c)  of  this  Section
 8    shall   not   exceed   50%  of  the  retirement  annuity  the
 9    firefighter would have received on the date of death.
10        The maximum pension limitations in this paragraph (d)  do
11    not  control  over  any  contrary  provision  of this Article
12    explicitly  establishing  a  minimum  amount  of  pension  or
13    granting a one-time or annual increase in pension.
14        (e)  If a firefighter leaves no eligible survivors  under
15    paragraphs  (a),  (b)  and (c), the board shall refund to the
16    firefighter's estate the amount of  his  or  her  accumulated
17    contributions,  less  the amount of pension payments, if any,
18    made to the firefighter while living.
19        (f)  An  adopted  child  is  eligible  for  the   pension
20    provided  under paragraph (a) if the child was adopted before
21    the firefighter attained age 50.
22        (g)  If a judgment of dissolution of marriage  between  a
23    firefighter  and spouse is judicially set aside subsequent to
24    the firefighter's death, the surviving spouse is eligible for
25    the pension provided in paragraph (a) only  if  the  judicial
26    proceedings  are  filed  within 2 years after the date of the
27    dissolution  of  marriage  and  within  one  year  after  the
28    firefighter's death and the board is  made  a  party  to  the
29    proceedings.  In  such case the pension shall be payable only
30    from the date of the court's order setting aside the judgment
31    of dissolution of marriage.
32        (h)  Benefits payable on account of a  child  under  this
33    Section  shall  not be reduced or terminated by reason of the
34    child's attainment of age 18 if he or she is  then  dependent
 
                            -19-     LRB093 05642 EFG 17131 a
 1    by  reason  of  a  physical  or  mental  disability but shall
 2    continue to be paid as long  as  such  dependency  continues.
 3    Individuals  over  the  age  of 18 and adjudged as a disabled
 4    person pursuant to Article XIa of the Probate  Act  of  1975,
 5    except  for  persons  receiving benefits under Article III of
 6    the Illinois Public Aid Code, shall be  eligible  to  receive
 7    benefits under this Act.
 8        (i)  Beginning  January  1,  2000,  the  pension  of  the
 9    surviving  spouse  of  a  firefighter  who  dies  on or after
10    January 1, 1994 as a result of sickness, accident, or  injury
11    incurred  in  or  resulting from the performance of an act of
12    duty or from the cumulative effects of acts of duty shall not
13    be less than 100% of the salary attached to the rank held  by
14    the   deceased  firefighter  on  the  last  day  of  service,
15    notwithstanding subsection (d) or any other provision of this
16    Article.
17        (j)  Each survivor's pension payable on January 1,  2004,
18    shall  be  increased  on  that  date,  and  on each January 1
19    thereafter, by an amount equal to 3% of the pension otherwise
20    payable at the time of the increase, including  any  previous
21    increases  under  this Article.  This increase does not apply
22    to any survivor's pension that first  becomes  payable  after
23    January 1, 2004.
24    (Source: P.A. 91-466, eff. 8-6-99.)

25        (40 ILCS 5/5-129.1)
26        Sec.  5-129.1.  Withdrawal  at mandatory retirement age -
27    amount of annuity.
28        (a)  In  lieu  of  any  annuity  provided  in  the  other
29    provisions of this Article, a policeman who  is  required  to
30    withdraw  from  service  on  or  after January 1, 2000 due to
31    attainment of mandatory retirement age and has less  than  20
32    years of service credit may elect to receive an annuity equal
33    to  30%  of  average salary for the first 10 years of service
 
                            -20-     LRB093 05642 EFG 17131 a
 1    plus 2% of average salary for each completed year of  service
 2    or  fraction  thereof  in  excess  of 10, but not to exceed a
 3    maximum of 48% of average salary.
 4        (b)  For the purpose of this  Section,  "average  salary"
 5    means  the  average  of  the  highest  4 consecutive years of
 6    salary within the last 10 years of service, or  such  shorter
 7    period  as  may  be  used  to  calculate a minimum retirement
 8    annuity under Section 5-132.
 9        (c)  For  the  purpose  of  qualifying  for  the   annual
10    increases  provided  in  Section  5-167.1,  a policeman whose
11    retirement annuity is calculated under this Section shall  be
12    deemed to qualify for a minimum annuity.
13        (d)  A  policeman  with  less  than  20  years of service
14    credit who was required to withdraw from service on or  after
15    January 1, 2000 but before June 28, 2002 due to attainment of
16    mandatory  retirement age is also entitled to have his or her
17    retirement  annuity  calculated  in  accordance   with   this
18    Section.   If  payment  of the annuity has already begun, the
19    annuity shall be recalculated.  The  resulting  increase,  if
20    any,  shall accrue from the starting date of the annuity; the
21    amount of the increase relating  to  the  period  before  the
22    annuity  is  recalculated shall be paid to the annuitant in a
23    lump sum, without interest.
24    (Source: P.A. 92-599, eff. 6-28-02.)

25        (40 ILCS 5/5-234) (from Ch. 108 1/2, par. 5-234)
26        Sec. 5-234.  Transfer of credits.
27        (a)  Any police officer who has  at  least  10  years  of
28    creditable  service  in  the  Fund  may transfer to this Fund
29    credits and creditable service accumulated  under  any  other
30    pension fund or retirement system established under Article 8
31    or  12  of this Code, by making application and paying to the
32    Fund before January 1, 1990 the amount by which the  employee
33    contributions  that  would  have  been  required  if  he  had
 
                            -21-     LRB093 05642 EFG 17131 a
 1    participated  in this Fund during the period for which credit
 2    is being  transferred,  plus  interest,  exceeds  the  amount
 3    actually  transferred  from such other fund or system to this
 4    Fund under item (1) of Section 8-226.5 or item (1) of Section
 5    12-127.5.
 6        (b)  A policeman may transfer to this Fund up to 10 years
 7    of credits  and  creditable  service  accumulated  under  the
 8    pension  fund  established  under  Article 6 of this Code, by
 9    making written application to the Fund within 6 months of the
10    effective date of this amendatory Act  of  the  93rd  General
11    Assembly.   For  the  transfer to be effective, the policeman
12    must pay to the  Fund  before  withdrawal  from  service  the
13    amount,  if  any,  by  which  the employee contributions that
14    would have been required if he or  she  had  participated  in
15    this  Fund  during  the  period  for  which  credit  is being
16    transferred,  plus  interest,  exceeds  the  amount  actually
17    transferred from the  Article  6  fund  to  this  Fund  under
18    Section 6-227.
19    (Source: P.A. 86-272.)

20        (40 ILCS 5/6-124.1 new)
21        Sec.  6-124.1.  Withdrawal  at mandatory retirement age -
22    amount of annuity.
23        (a)  In  lieu  of  any  annuity  provided  in  the  other
24    provisions of this Article, a  fireman  who  is  required  to
25    withdraw   from   service  due  to  attainment  of  mandatory
26    retirement age and has at least 10 but less than 20 years  of
27    service  credit  may elect to receive an annuity equal to 30%
28    of average salary for the first 10 years of service  plus  2%
29    of  average  salary  for  each  completed  year of service or
30    remaining fraction thereof in excess of 10, but not to exceed
31    a maximum of 50% of average salary.
32        (b)  For the purpose of this  Section,  "average  salary"
33    means  the  average  of  the  fireman's highest 4 consecutive
 
                            -22-     LRB093 05642 EFG 17131 a
 1    years of salary within the last 10 years of service.
 2        (c)  For  the  purpose  of  qualifying  for  the   annual
 3    increases   provided   in  Section  6-164,  a  fireman  whose
 4    retirement annuity is calculated under this Section shall  be
 5    deemed to qualify for a minimum annuity.
 6        (d)  A  fireman with less than 20 years of service credit
 7    who was required to withdraw from service on or after January
 8    1, 2000 but before the effective date of this amendatory  Act
 9    of  the  93rd General Assembly due to attainment of mandatory
10    retirement age is also entitled to have his or her retirement
11    annuity calculated  in  accordance  with  this  Section.   If
12    payment  of  the annuity has already begun, the annuity shall
13    be recalculated.   The  resulting  increase,  if  any,  shall
14    accrue  from  the starting date of the annuity; the amount of
15    the increase relating to the period  before  the  annuity  is
16    recalculated  shall  be  paid to the annuitant in a lump sum,
17    without interest.

18        (40 ILCS 5/7-132) (from Ch. 108 1/2, par. 7-132)
19        Sec.   7-132.  Municipalities,   instrumentalities    and
20    participating instrumentalities included and effective dates.

21    (A)  Municipalities and their instrumentalities.
22        (a)  The  following  described  municipalities,  but  not
23    including  any  with more than 1,000,000 inhabitants, and the
24    instrumentalities thereof, shall be included  within  and  be
25    subject  to  this  Article beginning upon the effective dates
26    specified by the Board:
27             (1)  Except   as   to   the    municipalities    and
28        instrumentalities  thereof  specifically  excluded  under
29        this  Article,  every  county  shall  be  subject to this
30        Article, and all cities, villages and incorporated  towns
31        having  a  population  in  excess of 5,000 inhabitants as
32        determined by the last preceding decennial or  subsequent
33        federal   census,   shall  be  subject  to  this  Article
 
                            -23-     LRB093 05642 EFG 17131 a
 1        following publication of the census by the Bureau of  the
 2        Census.  Within  90 days after publication of the census,
 3        the Board shall notify any municipality that  has  become
 4        subject  to  this Article as a result of that census, and
 5        shall provide information to the corporate authorities of
 6        the municipality explaining the duties  and  consequences
 7        of  participation.  The notification shall also include a
 8        proposed   date   upon   which   participation   by   the
 9        municipality will commence.
10             However, for any city, village or incorporated  town
11        that  attains  a  population over 5,000 inhabitants after
12        having  provided  social  security   coverage   for   its
13        employees   under   the  Social  Security  Enabling  Act,
14        participation under this Article shall not  be  mandatory
15        but may be elected in accordance with subparagraph (3) or
16        (4) of this paragraph (a), whichever is applicable.
17             (2)  School districts, other than those specifically
18        excluded  under  this  Article,  shall be subject to this
19        Article, without election, with respect to all  employees
20        thereof.
21             (3)  Towns   and   all   other  bodies  politic  and
22        corporate which are formed by vote of, or are subject  to
23        control  by,  the  electors  in  towns and are located in
24        towns which are not participating municipalities  on  the
25        effective  date  of  this Act, may become subject to this
26        Article by election pursuant to Section 7-132.1.
27             (4)  Any  other  municipality  (together  with   its
28        instrumentalities),   other   than   those   specifically
29        excluded   from  participation  and  those  described  in
30        paragraph (3) above, may elect to be included  either  by
31        referendum  under  Section  7-134 or by the adoption of a
32        resolution or ordinance by its governing body.  A copy of
33        such  resolution  or  ordinance  duly  authenticated  and
34        certified by the  clerk  of  the  municipality  or  other
 
                            -24-     LRB093 05642 EFG 17131 a
 1        appropriate   official   of   its  governing  body  shall
 2        constitute the required  notice  to  the  board  of  such
 3        action.
 4        (b)  A  municipality that is about to begin participation
 5    shall submit to the Board an application to participate, in a
 6    form acceptable to the Board, not later than 90 days prior to
 7    the proposed effective  date  of  participation.   The  Board
 8    shall  act  upon  the  application  within 90 days, and if it
 9    finds  that  the  application  is  in  conformity  with   its
10    requirements   and   the   requirements   of   this  Article,
11    participation by the  applicant  shall  commence  on  a  date
12    acceptable  to  the  municipality and specified by the Board,
13    but in  no  event  more  than  one  year  from  the  date  of
14    application.
15        (c)  A  participating  municipality which succeeds to the
16    functions of a participating municipality which is  dissolved
17    or  terminates  its existence shall assume and be transferred
18    the net accumulation balance in the municipality reserve  and
19    the municipality account receivable balance of the terminated
20    municipality.
21        (d)  In  the  case  of  a  Veterans Assistance Commission
22    whose employees were being treated by the Fund on January  1,
23    1990 as employees of the county served by the Commission, the
24    Fund  may  continue  to  treat  the employees of the Veterans
25    Assistance Commission as county employees for the purposes of
26    this Article, unless the Commission becomes  a  participating
27    instrumentality  in  accordance  with  subsection (B) of this
28    Section.

29    (B)  Participating instrumentalities.
30        (a)  The participating  instrumentalities  designated  in
31    paragraph (b) of this subsection shall be included within and
32    be subject to this Article if:
33             (1)  an   application  to  participate,  in  a  form
34        acceptable to the Board and adopted by a two-thirds  vote
 
                            -25-     LRB093 05642 EFG 17131 a
 1        of  the  governing  body,  is  presented to the Board not
 2        later than 90 days prior to the proposed effective  date;
 3        and
 4             (2)  the  Board  finds  that  the  application is in
 5        conformity with its requirements, that the applicant  has
 6        reasonable  expectation to continue as a political entity
 7        for a period of at least 10 years and has the prospective
 8        financial  capacity  to  meet  its  current  and   future
 9        obligations to the Fund, and that the actuarial soundness
10        of  the  Fund may be reasonably expected to be unimpaired
11        by approval of participation by the applicant.
12        The Board shall notify  the  applicant  of  its  findings
13    within  90  days  after receiving the application, and if the
14    Board  approves  the  application,   participation   by   the
15    applicant  shall  commence on the effective date specified by
16    the Board.
17        (b)  The following  participating  instrumentalities,  so
18    long  as  they meet the requirements of Section 7-108 and the
19    area served by them  or  within  their  jurisdiction  is  not
20    located  entirely  within a municipality having more than one
21    million inhabitants, may be included hereunder:
22             i.  Township School District Trustees.
23             ii.  Multiple   County   and   Consolidated   Health
24        Departments created under Division 5-25 of  the  Counties
25        Code or its predecessor law.
26             iii.  Public  Building Commissions created under the
27        Public Building Commission Act, and located  in  counties
28        of less than 1,000,000 inhabitants.
29             iv.  A   multitype,   consolidated   or  cooperative
30        library system created under the Illinois Library  System
31        Act.   Any  library  system  created  under  the Illinois
32        Library System Act that has one or more predecessors that
33        participated in the Fund may participate in the Fund upon
34        application.  The Board shall  establish  procedures  for
 
                            -26-     LRB093 05642 EFG 17131 a
 1        implementing  the transfer of rights and obligations from
 2        the predecessor system to the successor system.
 3             v.  Regional  Planning  Commissions  created   under
 4        Division  5-14  of  the  Counties Code or its predecessor
 5        law.
 6             vi.  Local Public Housing Authorities created  under
 7        the  Housing Authorities Act, located in counties of less
 8        than 1,000,000 inhabitants.
 9             vii.  Illinois Municipal League.
10             viii.  Northeastern   Illinois   Metropolitan   Area
11        Planning Commission.
12             ix.  Southwestern   Illinois    Metropolitan    Area
13        Planning Commission.
14             x.  Illinois Association of Park Districts.
15             xi.  Illinois  Supervisors, County Commissioners and
16        Superintendents of Highways Association.
17             xii.  Tri-City Regional Port District.
18             xiii.  An     association,     or     not-for-profit
19        corporation, membership  in  which  is  authorized  under
20        Section 85-15 of the Township Code.
21             xiv.  Drainage   Districts   operating   under   the
22        Illinois Drainage Code.
23             xv.  Local  mass transit districts created under the
24        Local Mass Transit District Act.
25             xvi.  Soil and water conservation districts  created
26        under the Soil and Water Conservation Districts Law.
27             xvii.  Commissions  created  to provide water supply
28        or sewer services or both under Division 135 or  Division
29        136 of Article 11 of the Illinois Municipal Code.
30             xviii.  Public  water  districts  created  under the
31        Public Water District Act.
32             xix.  Veterans  Assistance  Commissions  established
33        under Section 9 of the Military Veterans  Assistance  Act
34        that  serve  counties  with  a  population  of  less than
 
                            -27-     LRB093 05642 EFG 17131 a
 1        1,000,000.
 2             xx.  The governing body of an entity, other  than  a
 3        vocational   education   cooperative,  created  under  an
 4        intergovernmental   cooperative   agreement   established
 5        between   participating    municipalities    under    the
 6        Intergovernmental  Cooperation Act, which by the terms of
 7        the agreement is the employer of the  persons  performing
 8        services  under  the agreement under the usual common law
 9        rules  determining  the  employer-employee  relationship.
10        The  governing  body   of   such   an   intergovernmental
11        cooperative  entity established prior to July 1, 1988 may
12        make participation retroactive to the effective  date  of
13        the   agreement   and,  if  so,  the  effective  date  of
14        participation shall be the date the required  application
15        is  filed with the fund.  If any such entity is unable to
16        pay the required employer contributions to the fund, then
17        the participating municipalities shall  make  payment  of
18        the  required  contributions  and  the  payments shall be
19        allocated as provided in the  agreement  or,  if  not  so
20        provided, equally among them.
21             xxi.  The Illinois Municipal Electric Agency.
22             xxii.  The Waukegan Port District.
23             xxiii.  The  Fox  Waterway  Agency created under the
24        Fox Waterway Agency Act.
25             xxiv.  The Illinois Municipal Gas Agency.
26             xxv.  The Kaskaskia Regional Port District.
27             xxvi.  The   Southwestern    Illinois    Development
28        Authority.
29             xxvii.  The United Counties Council of Illinois.  If
30        the   United  Counties  Council  of  Illinois  becomes  a
31        participating instrumentality included within and subject
32        to this Article,  service  with  the  Council  under  its
33        previous  name  (the  Urban Counties Council of Illinois)
34        shall be deemed service  with  the  same  employer.   The
 
                            -28-     LRB093 05642 EFG 17131 a
 1        employer may elect to make any employee contributions for
 2        prior service on behalf of the employees.
 3        (c)  The  governing  boards  of  special  education joint
 4    agreements created under Section 10-22.31 of the School  Code
 5    without  designation  of  an administrative district shall be
 6    included  within  and  be  subject   to   this   Article   as
 7    participating  instrumentalities  when  the  joint  agreement
 8    becomes  effective.  However, the governing board of any such
 9    special education joint agreement in effect before  September
10    5, 1975 shall not be subject to this Article unless the joint
11    agreement is modified by the school districts to provide that
12    the  governing  board  is  subject to this Article, except as
13    otherwise provided by this Section.
14        The governing board of the Special Education District  of
15    Lake  County  shall  become  subject  to  this  Article  as a
16    participating    instrumentality    on    July    1,    1997.
17    Notwithstanding subdivision (a)1 of  Section  7-139,  on  the
18    effective  date  of participation, employees of the governing
19    board of the Special Education District of Lake County  shall
20    receive  creditable service for their prior service with that
21    employer, up to a maximum of 5 years,  without  any  employee
22    contribution.  Employees may establish creditable service for
23    the  remainder  of their prior service with that employer, if
24    any,  by  applying  in  writing  and   paying   an   employee
25    contribution  in  an  amount determined by the Fund, based on
26    the employee contribution rates in  effect  at  the  time  of
27    application  for  the  creditable  service and the employee's
28    salary rate on the effective date of participation  for  that
29    employer,  plus  interest at the effective rate from the date
30    of the prior service to the date of payment.  Application for
31    this creditable service must be made before July 1, 1998; the
32    payment may be made at any time while the employee  is  still
33    in  service.   The  employer  may  elect to make the required
34    contribution on behalf of the employee.
 
                            -29-     LRB093 05642 EFG 17131 a
 1        The  governing  board  of  a  special   education   joint
 2    agreement  created  under Section 10-22.31 of the School Code
 3    for which an administrative district has been designated,  if
 4    there are employees of the cooperative educational entity who
 5    are  not  employees of the administrative district, may elect
 6    to participate in  the  Fund  and  be  included  within  this
 7    Article  as  a participating instrumentality, subject to such
 8    application procedures and rules as the Board may prescribe.
 9        The Boards of Control of cooperative or joint educational
10    programs or projects created and administered  under  Section
11    3-15.14 of the School Code, whether or not the Boards  act as
12    their  own  administrative district, shall be included within
13    and   be   subject   to   this   Article   as   participating
14    instrumentalities  when  the   agreement   establishing   the
15    cooperative  or  joint educational program or project becomes
16    effective.
17        The  governing  board  of  a  special   education   joint
18    agreement  entered  into  after  June  30,  1984 and prior to
19    September 17, 1985 which provides for representation  on  the
20    governing  board by less than all the participating districts
21    shall be included within and subject to  this  Article  as  a
22    participating  instrumentality.   Such participation shall be
23    effective  as  of  the  date  the  joint  agreement   becomes
24    effective.
25        The  governing  boards  of  educational  service  centers
26    established  under Section 2-3.62 of the School Code shall be
27    included within and subject to this Article as  participating
28    instrumentalities.    The   governing  boards  of  vocational
29    education   cooperative   agreements   created   under    the
30    Intergovernmental  Cooperation  Act and approved by the State
31    Board of Education shall be included within and be subject to
32    this Article as participating instrumentalities.  If any such
33    governing boards or boards of control are unable to  pay  the
34    required  employer contributions to the fund, then the school
 
                            -30-     LRB093 05642 EFG 17131 a
 1    districts  served  by  such  boards  shall  make  payment  of
 2    required contributions as provided  in  Section  7-172.   The
 3    payments   shall   be  allocated  among  the  several  school
 4    districts in proportion to the number of students in  average
 5    daily  attendance  for  the  last  full  school year for each
 6    district in relation to  the  total  number  of  students  in
 7    average  attendance for such period for all districts served.
 8    If such educational  service  centers,  vocational  education
 9    cooperatives  or cooperative or joint educational programs or
10    projects created and administered under  Section  3-15.14  of
11    the  School  Code  are  dissolved, the assets and obligations
12    shall  be  distributed  among  the  districts  in  the   same
13    proportions unless otherwise provided.
14        (d)  The  governing  boards  of  special recreation joint
15    agreements created under Section 8-10b of the  Park  District
16    Code,  operating  without  designation  of  an administrative
17    district  or  an  administrative  municipality  appointed  to
18    administer the program operating under the authority of  such
19    joint  agreement  shall  be included within and be subject to
20    this Article  as  participating  instrumentalities  when  the
21    joint  agreement  becomes  effective.  However, the governing
22    board of any  such  special  recreation  joint  agreement  in
23    effect  before  January  1, 1980 shall not be subject to this
24    Article unless  the  joint  agreement  is  modified,  by  the
25    districts   and  municipalities  which  are  parties  to  the
26    agreement, to provide that the governing board is subject  to
27    this Article.
28        If   the   Board   returns   any  employer  and  employee
29    contributions to any  employer  which  erroneously  submitted
30    such  contributions  on  behalf of a special recreation joint
31    agreement, the Board shall include interest computed from the
32    end of each year to the date of payment, not  compounded,  at
33    the rate of 7% per annum.
34        (e)  Each  multi-township  assessment district, the board
 
                            -31-     LRB093 05642 EFG 17131 a
 1    of trustees of which has adopted this  Article  by  ordinance
 2    prior   to   April   1,   1982,   shall  be  a  participating
 3    instrumentality included within and subject to  this  Article
 4    effective  December 1, 1981. The contributions required under
 5    Section 7-172 shall be included in the budget prepared  under
 6    and allocated in accordance with Section 2-30 of the Property
 7    Tax Code.
 8        (f)  Beginning   January   1,   1992,   each  prospective
 9    participating municipality or  participating  instrumentality
10    shall  pay  to the Fund the cost, as determined by the Board,
11    of a study prepared by the Fund or its actuary, detailing the
12    prospective costs of participation in the Fund to be expected
13    by the municipality or instrumentality.
14    (Source: P.A. 92-424, eff. 8-17-01.)

15        (40 ILCS 5/7-141.1)
16        Sec. 7-141.1. Early retirement incentive.
17        (a)  The General Assembly finds and declares that:
18             (1)  Units of local government across the State have
19        been functioning under a financial crisis.
20             (2)  This financial crisis is expected to continue.
21             (3)  Units  of  local  government  must  depend   on
22        additional sources of revenue and, when those sources are
23        not forthcoming, must establish cost-saving programs.
24             (4)  An    early   retirement   incentive   designed
25        specifically to target highly-paid senior employees could
26        result in significant annual cost savings.
27             (5)  The early retirement incentive should  be  made
28        available  only  to  those units of local government that
29        determine that an early retirement incentive is in  their
30        best interest.
31             (6)  A  unit  of local government adopting a program
32        of early retirement  incentives  under  this  Section  is
33        encouraged to implement personnel procedures to prohibit,
 
                            -32-     LRB093 05642 EFG 17131 a
 1        for at least 5 years, the rehiring (whether on payroll or
 2        by  independent  contract) of employees who receive early
 3        retirement incentives.
 4             (7)  A unit of local government adopting  a  program
 5        of early retirement incentives under this Section is also
 6        encouraged   to  replace  as  few  of  the  participating
 7        employees as possible and to hire  replacement  employees
 8        for  salaries  totaling  no  more  than  80% of the total
 9        salaries formerly paid to the employees  who  participate
10        in the early retirement program.
11        It  is  the  primary purpose of this Section to encourage
12    units of local government that can realize true cost savings,
13    or have determined that an early  retirement  program  is  in
14    their   best  interest,  to  implement  an  early  retirement
15    program.
16        (b)  Until the effective date of this amendatory  Act  of
17    1997,  this  Section does not apply to any employer that is a
18    city, village, or incorporated town, nor to the employees  of
19    any  such  employer.  Beginning on the effective date of this
20    amendatory Act of 1997,  any  employer  under  this  Article,
21    including   an   employer   that   is  a  city,  village,  or
22    incorporated  town,   may  establish  an   early   retirement
23    incentive  program for its employees under this Section.  The
24    decision of a city, village, or incorporated town to consider
25    or establish an early  retirement  program  is  at  the  sole
26    discretion  of  that city, village, or incorporated town, and
27    nothing in this amendatory Act of 1997  limits  or  otherwise
28    diminishes   this  discretion.   Nothing  contained  in  this
29    Section shall be construed to require  a  city,  village,  or
30    incorporated  town  to  establish an early retirement program
31    and no city, village, or incorporated town may  be  compelled
32    to implement such a program.
33        The  benefits provided in this Section are available only
34    to members employed by  a  participating  employer  that  has
 
                            -33-     LRB093 05642 EFG 17131 a
 1    filed  with  the  Board of the Fund a resolution or ordinance
 2    expressly providing for the creation of an  early  retirement
 3    incentive  program  under  this Section for its employees and
 4    specifying  the  effective  date  of  the  early   retirement
 5    incentive  program.   Subject to the limitation in subsection
 6    (h),  an  employer  may  adopt  a  resolution  or   ordinance
 7    providing a program of early retirement incentives under this
 8    Section at any time.
 9        The resolution or ordinance shall be in substantially the
10    following form:

11                   RESOLUTION (ORDINANCE) NO. ....
12             A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
13             RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
14              IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
15        WHEREAS,  Section  7-141.1  of  the Illinois Pension Code
16    provides that a participating employer may elect to adopt  an
17    early  retirement  incentive  program offered by the Illinois
18    Municipal  Retirement  Fund  by  adopting  a  resolution   or
19    ordinance; and
20        WHEREAS, The goal of adopting an early retirement program
21    is  to  realize  a  substantial savings in personnel costs by
22    offering early retirement incentives to  employees  who  have
23    accumulated many years of service credit; and
24        WHEREAS,  Implementation  of the early retirement program
25    will provide a budgeting tool to aid in  controlling  payroll
26    costs; and
27        WHEREAS, The (name of governing body) has determined that
28    the  adoption  of an early retirement incentive program is in
29    the best interests of the (name of  participating  employer);
30    therefore be it
31        RESOLVED  (ORDAINED)  by  the (name of governing body) of
32    (name of participating employer) that:
33        (1)  The (name of  participating  employer)  does  hereby
34    adopt the Illinois Municipal Retirement Fund early retirement
 
                            -34-     LRB093 05642 EFG 17131 a
 1    incentive  program  as  provided  in  Section  7-141.1 of the
 2    Illinois  Pension  Code.   The  early  retirement   incentive
 3    program shall take effect on (date).
 4        (2)  In  order  to  help  achieve  a true cost savings, a
 5    person who  retires  under  the  early  retirement  incentive
 6    program  shall  lose  those  incentives  if  he  or she later
 7    accepts employment with any IMRF employer in a  position  for
 8    which  participation in IMRF is required or is elected by the
 9    employee.
10        (3)  In order to utilize an early retirement incentive as
11    a budgeting tool, the (name of participating  employer)  will
12    use  its best efforts either to limit the number of employees
13    who  replace  the  employees  who  retire  under  the   early
14    retirement  program  or  to  limit  the  salaries paid to the
15    employees who replace the  employees  who  retire  under  the
16    early retirement program.
17        (4)  The  effective  date  of  each employee's retirement
18    under this early retirement program shall be set by (name  of
19    employer)  and shall be no earlier than the effective date of
20    the program and no later than one year after  that  effective
21    date;   except   that  the  employee  may  require  that  the
22    retirement date set by the employer be no later than the June
23    30 next occurring after the effective date of the program and
24    no earlier than the date upon which  the  employee  qualifies
25    for retirement.
26        (5)  To  be  eligible  for the early retirement incentive
27    under this Section, the employee must have  attained  age  50
28    and  have  at  least 20 years of creditable service by his or
29    her retirement date.
30        (6)  The (clerk  or  secretary)  shall  promptly  file  a
31    certified  copy of this resolution (ordinance) with the Board
32    of Trustees of the Illinois Municipal Retirement Fund.
33    CERTIFICATION
34        I, (name), the (clerk  or  secretary)  of  the  (name  of
 
                            -35-     LRB093 05642 EFG 17131 a
 1    participating  employer)  of  the  County of (name), State of
 2    Illinois, do hereby certify that I am the keeper of the books
 3    and records of the (name of employer) and that the  foregoing
 4    is  a  true and correct copy of a resolution (ordinance) duly
 5    adopted by the (governing body) at a  meeting  duly  convened
 6    and held on (date).
 7    SEAL
 8    (Signature of clerk or secretary)

 9        (c)  To  be  eligible  for the benefits provided under an
10    early  retirement  incentive  program  adopted   under   this
11    Section, a member must:
12             (1)  be  a  participating employee of this Fund who,
13        on the effective date of the program, (i)  is  in  active
14        payroll status as an employee of a participating employer
15        that  has filed the required ordinance or resolution with
16        the Board, (ii) is on layoff status from such a  position
17        with a right of re-employment or recall to service, (iii)
18        is on a leave of absence from such a position, or (iv) is
19        on  disability  but has not been receiving benefits under
20        Section 7-146 or 7-150 for a period of more than 2  years
21        from the date of application;
22             (2)  have  never  previously  received  a retirement
23        annuity  under  this  Article  or  under  the  Retirement
24        Systems Reciprocal Act using service  credit  established
25        under this Article;
26             (3)  (blank);
27             (4)  have at least 20 years of creditable service in
28        the  Fund  by  the date of retirement, without the use of
29        any creditable service established under this Section;
30             (5)  have attained age 50 by the date of retirement,
31        without the use of any  age  enhancement  received  under
32        this Section; and
33             (6)  be  eligible  to  receive  a retirement annuity
34        under this Article by the date of retirement,  for  which
 
                            -36-     LRB093 05642 EFG 17131 a
 1        purpose   the  age  enhancement  and  creditable  service
 2        established under this Section may be considered.
 3        (d)  The employer shall determine the retirement date for
 4    each employee participating in the early  retirement  program
 5    adopted  under this Section.  The retirement date shall be no
 6    earlier than the effective date of the program and  no  later
 7    than  one  year  after  that  effective date, except that the
 8    employee may require that the  retirement  date  set  by  the
 9    employer  be  no  later than the June 30 next occurring after
10    the effective date of the program and  no  earlier  than  the
11    date  upon  which the employee qualifies for retirement.  The
12    employer shall give each employee participating in the  early
13    retirement  program  at  least  30 days written notice of the
14    employee's designated retirement date,  unless  the  employee
15    waives this notice requirement.
16        (e)  An  eligible  person  may establish up to 5 years of
17    creditable service under this Section.  In addition, for each
18    period of creditable service established under this  Section,
19    a  person  shall  have  his  or  her age at retirement deemed
20    enhanced by an equivalent period.
21        The creditable service established under this Section may
22    be  used  for  all  purposes  under  this  Article  and   the
23    Retirement Systems Reciprocal Act, except for the computation
24    of  final rate of earnings and the determination of earnings,
25    salary, or compensation under this or any  other  Article  of
26    the Code.
27        The age enhancement established under this Section may be
28    used   for   all   purposes  under  this  Article  (including
29    calculation  of  the  reduction  imposed  under   subdivision
30    (a)1b(iv)  of  Section  7-142),   except  for  purposes  of a
31    reversionary   annuity   under   Section   7-145   and    any
32    distributions  required  because of age.  The age enhancement
33    established under this Section may be used in  calculating  a
34    proportionate   annuity   payable  by  this  Fund  under  the
 
                            -37-     LRB093 05642 EFG 17131 a
 1    Retirement Systems Reciprocal Act, but shall not be  used  in
 2    determining  benefits  payable  under  other Articles of this
 3    Code under the Retirement Systems Reciprocal Act.
 4        (f)  For all creditable service  established  under  this
 5    Section,  the  member  must  pay  to  the  Fund  an  employee
 6    contribution  consisting  of  4.5%  of  the  member's highest
 7    annual salary rate used in the  determination  of  the  final
 8    rate  of  earnings  for  retirement annuity purposes for each
 9    year of creditable service granted under this  Section.   For
10    creditable service established under this Section by a person
11    who  is  a  sheriff's  law  enforcement employee to be deemed
12    service as a sheriff's law enforcement employee, the employee
13    contribution shall be at the rate of 6.5% of  highest  annual
14    salary per year of creditable service granted.  Contributions
15    for  fractions  of  a year of service shall be prorated.  Any
16    amounts that are disregarded in determining the final rate of
17    earnings under subdivision (d)(5) of Section 7-116 (the  125%
18    rule)  shall  also be disregarded in determining the required
19    contribution under this subsection (f).
20        The employee contribution shall be paid to  the  Fund  as
21    follows:  If the member is entitled to a lump sum payment for
22    accumulated  vacation,  sick  leave,  or  personal leave upon
23    withdrawal  from  service,  the  employer  shall  deduct  the
24    employee contribution from that lump sum and pay the deducted
25    amount directly to the Fund.  If there is no  such  lump  sum
26    payment or the required employee contribution exceeds the net
27    amount  of  the  lump  sum payment, then the remaining amount
28    due, at the option of the employee, may either be paid to the
29    Fund before  the  annuity  commences  or  deducted  from  the
30    retirement annuity in 24 equal monthly installments.
31        (g)  An annuitant who has received any age enhancement or
32    creditable  service under this Section and thereafter accepts
33    employment with or enters into a personal  services  contract
34    with an employer under this Article thereby forfeits that age
 
                            -38-     LRB093 05642 EFG 17131 a
 1    enhancement   and   creditable   service;  except  that  this
 2    restriction does not apply to service in an elective  office,
 3    so  long  as  the annuitant does not participate in this Fund
 4    with respect to  that  office.   A  person  forfeiting  early
 5    retirement incentives under this subsection (i) must repay to
 6    the  Fund  that  portion  of  the  retirement annuity already
 7    received  which  is  attributable  to  the  early  retirement
 8    incentives that  are  being  forfeited,  (ii)  shall  not  be
 9    eligible  to  participate  in  any  future  early  retirement
10    program  adopted under this Section, and (iii) is entitled to
11    a refund of the employee contribution paid  under  subsection
12    (f).   The Board shall deduct the required repayment from the
13    refund and may  impose  a  reasonable  payment  schedule  for
14    repaying  the amount, if any, by which the required repayment
15    exceeds the refund amount.
16        (h)  The additional  unfunded  liability  accruing  as  a
17    result  of  the  adoption  of  a  program of early retirement
18    incentives  under  this  Section  by  an  employer  shall  be
19    amortized over a period of 10 years beginning on January 1 of
20    the second calendar year following the calendar year in which
21    the latest date for beginning to receive a retirement annuity
22    under the  program  (as  determined  by  the  employer  under
23    subsection  (d)  of  this  Section)  occurs;  except that the
24    employer may provide for a shorter amortization period (of no
25    less than 5 years) by adopting  an  ordinance  or  resolution
26    specifying   the   length  of  the  amortization  period  and
27    submitting a certified copy of the ordinance or resolution to
28    the Fund no later than 6 months after the effective  date  of
29    the  program.  An employer, at its discretion, may accelerate
30    payments to the Fund.
31        An employer may provide more than  one  early  retirement
32    incentive  program  for  its  employees  under  this Section.
33    However, an employer that has provided  an  early  retirement
34    incentive  program  for  its employees under this Section may
 
                            -39-     LRB093 05642 EFG 17131 a
 1    not provide another early retirement incentive program  under
 2    this  Section  until  the  liability arising from the earlier
 3    program has been fully paid to the Fund.
 4    (Source: P.A. 90-32, eff. 6-27-97; 91-887, eff. 7-6-00.)

 5        (40 ILCS 5/7-154) (from Ch. 108 1/2, par. 7-154)
 6        Sec. 7-154.  Surviving spouse annuities - Eligibility.
 7        (a)  A surviving spouse annuity shall be payable  to  the
 8    eligible  surviving  spouse  of  a participating employee, an
 9    employee annuitant, or a person who  on  the  date  of  death
10    would  have  been  entitled  to  a retirement annuity, had he
11    applied for such annuity, and who dies at  any  time  when  a
12    surviving  spouse  annuity  equals  at  least  $5  per month,
13    provided:
14             (1)  The surviving spouse (i)  was  married  to  the
15        participating  employee for at least one year on the date
16        of death, or (ii) was married to the annuitant or  person
17        entitled  to  a  retirement annuity for at least one year
18        prior to the date of termination of service, or (iii) was
19        married to the deceased annuitant for at least  one  year
20        on  the date of the deceased annuitant's death, if at the
21        time of termination of service the deceased annuitant was
22        married for at least one year to a spouse  who  does  not
23        survive  the  deceased  annuitant, or (iv) was married to
24        the deceased annuitant for at least 8 years on  the  date
25        of  the deceased annuitant's death, and the annuitant was
26        unmarried at the time of termination  of  service.   Item
27        (iv)  applies  without  regard  to  whether  the deceased
28        annuitant was in service on or after the  effective  date
29        of  this amendatory Act of the 93rd General Assembly, but
30        only if (A) written application for the surviving  spouse
31        annuity is received by the Fund within 30 days after that
32        effective  date  and  (B) any refund of contributions for
33        surviving spouse annuity purposes has been repaid to  the
 
                            -40-     LRB093 05642 EFG 17131 a
 1        Fund,  with  interest at the effective rate from the date
 2        of the refund to the date of repayment.
 3             (2)  The male deceased employee  annuitant  or  such
 4        other   person  entitled  to  a  retirement  annuity  had
 5        contributed to this fund  for  surviving  spouse  annuity
 6        purposes  for  at  least one 1 year or continuously since
 7        the effective date of the participating  municipality  or
 8        participating instrumentality.
 9             (3)  The  female deceased employee annuitant or such
10        other person entitled to  a  retirement  annuity  was  in
11        service  on  or  after  July  27, 1972, provided that the
12        annuity shall  not  be  computed  on  the  basis  of  any
13        retirement annuity effective before that date.
14             (4)  If  the  employee  dies  before  termination of
15        service, the employee did not exclude the spouse from any
16        death benefit or surviving  spouse  annuity  pursuant  to
17        subsection  (b)  of  Section  7-118.   A  designation  of
18        beneficiary  naming  a  spouse  and children jointly or a
19        trust pursuant to subsection (b) of Section  7-118  shall
20        preclude payment of a surviving spouse annuity.
21        (b)  If   a   person   is   the   spouse  of  a  retiring
22    participating employee on the date of the initial payment  of
23    a  retirement annuity and is qualified to receive a surviving
24    spouse annuity  upon  the  death  of  the  employee  and  the
25    surviving  spouse  contributions  are  not  refunded  to  the
26    employee, then a surviving spouse annuity shall be payable to
27    that person even if the marriage to the employee is dissolved
28    after that date.
29        (c)  Eligibility   of   a   surviving   spouse  shall  be
30    determined as of the  date  of  death,  except  as  otherwise
31    specifically  provided  in  this Section.  Only one surviving
32    spouse annuity shall be paid on account of the death  of  any
33    employee.
34    (Source: P.A. 87-740; 87-850.)
 
                            -41-     LRB093 05642 EFG 17131 a
 1        (40 ILCS 5/8-172) (from Ch. 108 1/2, par. 8-172)
 2        Sec.  8-172.  Refunds  -  Transfer of city contributions.
 3    Whenever any amount is refunded as provided in Sections 8-168
 4    and 8-169, except in the case of a male employee who  becomes
 5    a  widower  while  in  service  after  he becomes age 65, the
 6    amounts to the credit of the male employee from contributions
 7    by the city,  shall  be  transferred  to  the  prior  service
 8    annuity reserve.  Thereafter, except as otherwise provided in
 9    Section  8-172.1,  any  such amounts shall become a credit to
10    the city and, with interest thereon at the effective rate, be
11    used to reduce the amount which the city would otherwise  pay
12    during a succeeding year.
13    (Source: Laws 1963, p. 161.)

14        (40 ILCS 5/8-172.1 new)
15        Sec.   8-172.1.  Transfer   of   city  contributions  for
16    paramedics.
17        (a)  Municipality credits  computed  and  credited  under
18    this  Article  8  for all persons who (1) accumulated service
19    credit in this Article 8 fund for service as a paramedic, (2)
20    have terminated that Article 8 service credit and received  a
21    refund  of  contributions,  and  (3)  are participants in the
22    Article 6 fund on the effective date of this  amendatory  Act
23    of  the  93rd  General  Assembly shall be transferred by this
24    Article 8 fund to the Article 6 fund together  with  interest
25    at  the  rate  of  11% per annum, compounded annually, to the
26    date of transfer.  The city  shall  not  be  responsible  for
27    making  any  additional employer contributions to the Fund to
28    replace the amounts transferred under this Section.
29        (b)  Municipality credits  computed  and  credited  under
30    this  Article  8  for all persons who (1) accumulated service
31    credit in this Article 8 fund for service as a paramedic, (2)
32    have terminated that Article 8 service credit and received  a
33    refund  of contributions, and (3) are not participants in the
 
                            -42-     LRB093 05642 EFG 17131 a
 1    Article 6 fund on the effective date of this  amendatory  Act
 2    of  the  93rd  General  Assembly shall be used as provided in
 3    Section 8-172.

 4        (40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
 5        Sec. 14-103.05.  Employee.
 6        (a)  Any person employed by  a  Department  who  receives
 7    salary  for personal services rendered to the Department on a
 8    warrant issued pursuant to a payroll voucher certified  by  a
 9    Department  and drawn by the State Comptroller upon the State
10    Treasurer,  including  an  elected  official   described   in
11    subparagraph  (d) of Section 14-104, shall become an employee
12    for purpose of membership in the  Retirement  System  on  the
13    first day of such employment.
14        A person entering service on or after January 1, 1972 and
15    prior to January 1, 1984 shall become a member as a condition
16    of  employment and shall begin making contributions as of the
17    first day of employment.
18        A person entering service on or  after  January  1,  1984
19    shall,  upon  completion  of  6  months of continuous service
20    which is not interrupted by a break of more  than  2  months,
21    become  a member as a condition of employment.  Contributions
22    shall begin the first of the month after  completion  of  the
23    qualifying period.
24        The  qualifying  period  of  6  months  of service is not
25    applicable to:  (1) a person who has been granted credit  for
26    service  in  a  position  covered  by  the State Universities
27    Retirement System, the Teachers'  Retirement  System  of  the
28    State of Illinois, the General Assembly Retirement System, or
29    the  Judges Retirement System of Illinois unless that service
30    has been forfeited under the laws of  those  systems;  (2)  a
31    person  entering  service  on  or  after  July  1,  1991 in a
32    noncovered  position;  or  (3)  a  person  to  whom   Section
33    14-108.2a or 14-108.2b applies.
 
                            -43-     LRB093 05642 EFG 17131 a
 1        (b)  The term "employee" does not include the following:
 2             (1)  members  of  the State Legislature, and persons
 3        electing  to  become  members  of  the  General  Assembly
 4        Retirement System pursuant to Section 2-105;
 5             (2)  incumbents of offices normally filled  by  vote
 6        of the people;
 7             (3)  except  as  otherwise provided in this Section,
 8        any person appointed by the Governor with the advice  and
 9        consent  of  the  Senate  unless  that  person  elects to
10        participate in this system;
11             (4)  except  as  provided  in  Section  14-108.2  or
12        14-108.2c, any person who is covered or  eligible  to  be
13        covered  by  the Teachers' Retirement System of the State
14        of Illinois, the State Universities Retirement System, or
15        the Judges Retirement System of Illinois;
16             (5)  an employee of  a  municipality  or  any  other
17        political subdivision of the State;
18             (6)  any  person  who becomes an employee after June
19        30,  1979  as  a  public   service   employment   program
20        participant  under  the  Federal Comprehensive Employment
21        and Training Act and whose wages or fringe  benefits  are
22        paid  in  whole  or  in part by funds provided under such
23        Act;
24             (7)  enrollees   of   the   Illinois   Young   Adult
25        Conservation   Corps   program,   administered   by   the
26        Department  of  Natural  Resources,  authorized   grantee
27        pursuant  to  Title VIII of the "Comprehensive Employment
28        and Training  Act  of  1973",  29  USC  993,  as  now  or
29        hereafter amended;
30             (8)  enrollees   and  temporary  staff  of  programs
31        administered by the Department of Natural Resources under
32        the Youth Conservation Corps Act of 1970;
33             (9)  any person who is a member of any  professional
34        licensing  or  disciplinary  board  created  under an Act
 
                            -44-     LRB093 05642 EFG 17131 a
 1        administered by the Department of Professional Regulation
 2        or a successor agency or created or re-created after  the
 3        effective  date  of  this amendatory Act of 1997, and who
 4        receives per diem  compensation  rather  than  a  salary,
 5        notwithstanding  that  such per diem compensation is paid
 6        by warrant issued pursuant to  a  payroll  voucher;  such
 7        persons  have  never  been  included in the membership of
 8        this System,  and  this  amendatory  Act  of  1987  (P.A.
 9        84-1472)  is  not  intended  to  effect any change in the
10        status of such persons;
11             (10)  any person who is a  member  of  the  Illinois
12        Health  Care  Cost  Containment Council, and receives per
13        diem compensation rather than a  salary,  notwithstanding
14        that such per diem compensation is paid by warrant issued
15        pursuant  to  a  payroll voucher; such persons have never
16        been included in the membership of this System, and  this
17        amendatory  Act  of  1987  is  not intended to effect any
18        change in the status of such persons; or
19             (11)  any person who is a member of the Oil and  Gas
20        Board  created by Section 1.2 of the Illinois Oil and Gas
21        Act, and receives per diem  compensation  rather  than  a
22        salary,  notwithstanding  that such per diem compensation
23        is paid by warrant issued pursuant to a payroll voucher.
24        (c)  An individual who is employed on a  full-time  basis
25    as  an  officer or employee of a statewide labor organization
26    that represents members of this System may participate in the
27    System and shall be deemed an employee, provided that (1) the
28    individual has previously  earned  creditable  service  under
29    this  Article,  (2)  the  individual files with the System an
30    irrevocable election to become a  participant,  and  (3)  the
31    individual  does not receive credit for that employment under
32    any other provision of this Code.   An  employee  under  this
33    subsection  (c)  is responsible for paying to the System both
34    (i) employee contributions based on the  actual  compensation
 
                            -45-     LRB093 05642 EFG 17131 a
 1    received  for  service  with  the labor organization and (ii)
 2    employer contributions based on  the  percentage  of  payroll
 3    certified   by   the   board;   all  or  any  part  of  these
 4    contributions may be paid on the employee's behalf or  picked
 5    up  for tax purposes (if authorized under federal law) by the
 6    labor organization.
 7        A person who is an employee as defined in this subsection
 8    may establish service credit for similar employment prior  to
 9    becoming  an  employee under this subsection by paying to the
10    System for that employment  the  contributions  specified  in
11    this subsection, plus interest at the effective rate from the
12    date  of  service  to  the  date of payment.  However, credit
13    shall not be granted under this subsection for any such prior
14    employment for which the applicant received credit under  any
15    other  provision  of this Code, or during which the applicant
16    was on a leave of absence.
17    (Source: P.A. 92-14, eff. 6-28-01.)

18        (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
19        Sec. 14-104. Service for which  contributions  permitted.
20    Contributions  provided  for  in this Section shall cover the
21    period of service granted.  Except as otherwise  provided  in
22    this  Section,  the  contributions  shall  be  based upon the
23    employee's compensation and contribution rate  in  effect  on
24    the date he last became a member of the System; provided that
25    for  all employment prior to January 1, 1969 the contribution
26    rate shall be that in effect for a noncovered employee on the
27    date he last became  a  member  of  the  System.   Except  as
28    otherwise  provided  in this Section, contributions permitted
29    under this Section shall include regular  interest  from  the
30    date  an  employee  last became a member of the System to the
31    date of payment.
32        These  contributions  must  be  paid   in   full   before
33    retirement either in a lump sum or in installment payments in
 
                            -46-     LRB093 05642 EFG 17131 a
 1    accordance with such rules as may be adopted by the board.
 2        (a)  Any  member  may  make  contributions as required in
 3    this Section for any period of  service,  subsequent  to  the
 4    date of establishment, but prior to the date of membership.
 5        (b)  Any  employee  who had been previously excluded from
 6    membership because of age at entry  and  subsequently  became
 7    eligible  may elect to make contributions as required in this
 8    Section for  the  period  of  service  during  which  he  was
 9    ineligible.
10        (c)  An  employee  of  the  Department  of Insurance who,
11    after January 1, 1944 but  prior  to  becoming  eligible  for
12    membership, received salary from funds of insurance companies
13    in  the  process of rehabilitation, liquidation, conservation
14    or dissolution, may elect to make contributions  as  required
15    in this Section for such service.
16        (d)  Any  employee who rendered service in a State office
17    to which he was elected, or rendered service in the  elective
18    office  of  Clerk of the Appellate Court prior to the date he
19    became a member, may make contributions for such  service  as
20    required   in   this  Section.   Any  member  who  served  by
21    appointment of the Governor under  the  Civil  Administrative
22    Code  of  Illinois and did not participate in this System may
23    make contributions as  required  in  this  Section  for  such
24    service.
25        (e)  Any  person employed by the United States government
26    or any instrumentality or agency thereof from January 1, 1942
27    through November 15, 1946 as the result of  a  transfer  from
28    State  service  by  executive  order  of the President of the
29    United States shall  be  entitled  to  prior  service  credit
30    covering the period from January 1, 1942 through December 31,
31    1943  as  provided  for  in  this  Article  and to membership
32    service credit  for the period from January 1,  1944  through
33    November  15,  1946  by  making the contributions required in
34    this Section.  A person so employed on January  1,  1944  but
 
                            -47-     LRB093 05642 EFG 17131 a
 1    whose  employment began after January 1, 1942 may qualify for
 2    prior service and membership service credit  under  the  same
 3    conditions.
 4        (f)  An  employee of the Department of Labor of the State
 5    of  Illinois  who  performed  services  for  and  under   the
 6    supervision  of  that Department prior to January 1, 1944 but
 7    who was compensated for those services  directly  by  federal
 8    funds  and not by a warrant of the Auditor of Public Accounts
 9    paid by the State Treasurer may  establish  credit  for  such
10    employment  by  making  the  contributions  required  in this
11    Section. An employee of the Department of Agriculture of  the
12    State  of  Illinois, who performed services for and under the
13    supervision of that Department prior to June 1, 1963, but was
14    compensated for those services directly by federal funds  and
15    not  paid by a warrant of the Auditor of Public Accounts paid
16    by the State Treasurer, and who did  not  contribute  to  any
17    other public employee retirement system for such service, may
18    establish   credit   for   such   employment  by  making  the
19    contributions required in this Section.
20        (g)  Any employee who executed  a  waiver  of  membership
21    within  60  days  prior  to  January 1, 1944 may, at any time
22    while in the service of a department, file with the  board  a
23    rescission  of  such  waiver.   Upon making the contributions
24    required by this Section,  the member shall  be  granted  the
25    creditable  service  that  would  have  been  received if the
26    waiver had not been executed.
27        (h)  Until May 1, 1990, an employee who was employed on a
28    full-time basis by a  regional  planning  commission  for  at
29    least 5 continuous years may establish creditable service for
30    such  employment  by  making the contributions required under
31    this  Section,  provided  that  any  credits  earned  by  the
32    employee  in  the  commission's  retirement  plan  have  been
33    terminated.
34        (i)  Any  person  who  rendered  full  time   contractual
 
                            -48-     LRB093 05642 EFG 17131 a
 1    services to the General Assembly as a member of a legislative
 2    staff  may establish service credit for up to 8 years of such
 3    services by making  the  contributions  required  under  this
 4    Section, provided that application therefor is made not later
 5    than March 1, 2004 July 1, 1991.
 6        (j)  By paying the contributions otherwise required under
 7    this  Section,  plus  an amount determined by the Board to be
 8    equal to the employer's  normal  cost  of  the  benefit  plus
 9    interest,  but  with  all of the interest calculated from the
10    date the employee last became  a  member  of  the  System  or
11    November  19,  1991,  whichever  is  later,  to  the  date of
12    payment, an employee  may  establish  service  credit  for  a
13    period  of up to 2 years spent in active military service for
14    which he does not qualify for credit  under  Section  14-105,
15    provided  that  (1)  he  was not dishonorably discharged from
16    such military service, and (2) the amount of  service  credit
17    established by a member under this subsection (j), when added
18    to  the  amount  of  military  service  credit granted to the
19    member under subsection (b)  of  Section  14-105,  shall  not
20    exceed  5  years.   The  change  in the manner of calculating
21    interest under this subsection (j) made  by  this  amendatory
22    Act  of the 92nd General Assembly applies to credit purchased
23    by an employee on or after its effective date  and  does  not
24    entitle  any  person to a refund of contributions or interest
25    already paid.
26        (k)  An employee who was employed on a full-time basis by
27    the  Illinois   State's   Attorneys   Association   Statewide
28    Appellate Assistance Service LEAA-ILEC grant project prior to
29    the  time that project became the State's Attorneys Appellate
30    Service Commission, now the Office of the  State's  Attorneys
31    Appellate  Prosecutor,  an  agency  of  State government, may
32    establish creditable service for  not  more  than  60  months
33    service  for such employment by making contributions required
34    under this Section.
 
                            -49-     LRB093 05642 EFG 17131 a
 1        (l)  By paying the contributions otherwise required under
 2    this Section, plus an amount determined by the  Board  to  be
 3    equal  to  the  employer's  normal  cost  of the benefit plus
 4    interest, a member may establish service credit  for  periods
 5    of  less  than  one year spent on authorized leave of absence
 6    from service, provided that (1) the period of leave began  on
 7    or  after  January  1, 1982 and (2) any credit established by
 8    the member for the  period  of  leave  in  any  other  public
 9    employee retirement system has been terminated.  A member may
10    establish  service credit under this subsection for more than
11    one period of authorized leave, and in that  case  the  total
12    period of service credit established by the member under this
13    subsection   may   exceed   one  year.   In  determining  the
14    contributions required for establishing service credit  under
15    this  subsection,  the  interest shall be calculated from the
16    beginning of the leave of absence to the date of payment.
17        (m)  Any person who rendered contractual  services  to  a
18    member  of  the  General Assembly as a worker in the member's
19    district office may establish creditable service for up to  3
20    years   of   those   contractual   services   by  making  the
21    contributions required under this Section.  The System  shall
22    determine  a  full-time  salary equivalent for the purpose of
23    calculating the required contribution.  To  establish  credit
24    under this subsection, the applicant must apply to the System
25    by March 1, 2004 1998.
26        (n)  Any  person  who  rendered contractual services to a
27    member  of  the  General  Assembly  as  a  worker   providing
28    constituent  services to persons in the member's district may
29    establish creditable service for  up  to  8  years  of  those
30    contractual  services  by  making  the contributions required
31    under this Section.  The System shall determine  a  full-time
32    salary equivalent for the purpose of calculating the required
33    contribution.  To establish credit under this subsection, the
34    applicant must apply to the System by March 1, 2004 1998.
 
                            -50-     LRB093 05642 EFG 17131 a
 1        (o)  A   member   who   participated   in   the  Illinois
 2    Legislative Staff Internship Program may establish creditable
 3    service for up to one year of that  participation  by  making
 4    the  contribution  required  under  this Section.  The System
 5    shall determine a full-time salary equivalent for the purpose
 6    of calculating the required contribution.  Credit may not  be
 7    established  under  this  subsection for any period for which
 8    service credit is established under any  other  provision  of
 9    this Code.
10        (p)  By paying the contributions otherwise required under
11    this  Section,  plus  an amount determined by the Board to be
12    equal to the employer's  normal  cost  of  the  benefit  plus
13    interest,  a  member  who has 95 months of service credit may
14    establish one additional month of service credit and  thereby
15    meet  the 8-year vesting requirement for a retirement annuity
16    under Section 14-107.
17    (Source: P.A. 92-54, eff. 7-12-01.)

18        (40 ILCS 5/14-104.12 new)
19        Sec. 14-104.12. Credit for employment with  the  Illinois
20    Sports Facilities Authority Board.
21        (a)  A  person  who  has service credit in the System and
22    has not  yet  begun  to  receive  a  retirement  annuity  may
23    establish  service  credit  in this System for periods before
24    the effective date of this Section during which he or she was
25    employed by the Illinois Sports Facilities Authority Board or
26    its predecessor entities, provided that the person  does  not
27    have  credit  for  those periods in any other public employee
28    pension  fund  or  retirement  system  and   has   terminated
29    participation  with respect to those periods of employment in
30    any  pension  or  retirement  program  established   by   the
31    Authority  or  its  predecessor  entities.  A person need not
32    establish credit for all such periods and may  not  establish
33    more  than  10 years of service credit under this subsection.
 
                            -51-     LRB093 05642 EFG 17131 a
 1    The credit established shall  be  deemed  to  relate  to  the
 2    earliest period for which the credit may be established.
 3        In  order to establish this credit, the person must apply
 4    in writing to the Board and pay to the System an amount equal
 5    to the sum of: (i)  employee  contributions  based  upon  the
 6    period of credit to be established, the employee contribution
 7    rate   in   effect  at  the  time  of  application,  and  the
 8    applicant's salary rate on the last day  of  service  in  the
 9    System  before  his  or her employment with the Authority, or
10    the first day of service in the System after that employment,
11    whichever is higher; (ii) the employer's normal cost  of  the
12    benefits   accrued  for  the  credit  being  established,  as
13    determined by the Board; and (iii) regular interest on  items
14    (i) and (ii) from the date of the service for which credit is
15    being established to the date of payment.  The applicant must
16    pay  the  required  contribution  to  the  System  before the
17    retirement annuity begins.
18        (b)  A person wishing to establish service  credit  under
19    subsection  (a)  may  reinstate creditable service terminated
20    upon receipt of a refund in accordance with the provisions of
21    Section 14-130(b).
22        (c)  An eligible  person  may  establish  service  credit
23    under  subsection  (a) without returning to active service as
24    an  employee   under   this   Article,   but   the   required
25    contributions  must  be  received  by  the  System before the
26    person begins to receive  a  retirement  annuity  under  this
27    Article.

28        (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
29        Sec. 14-110.  Alternative retirement annuity.
30        (a)  Any  member  who has withdrawn from service with not
31    less than 20 years of eligible  creditable  service  and  has
32    attained  age  55,  and  any  member  who  has withdrawn from
33    service with not less than 25 years  of  eligible  creditable
 
                            -52-     LRB093 05642 EFG 17131 a
 1    service  and  has  attained age 50, regardless of whether the
 2    attainment of either of the specified ages occurs  while  the
 3    member  is  still in service, shall be entitled to receive at
 4    the option of the member, in lieu of the regular  or  minimum
 5    retirement   annuity,   a  retirement   annuity  computed  as
 6    follows:
 7             (i)  for  periods  of  service   as   a   noncovered
 8        employee:  if  retirement  occurs  on or after January 1,
 9        2001, 3% of final average compensation for each  year  of
10        creditable  service;  if retirement occurs before January
11        1, 2001, 2 1/4% of final average compensation for each of
12        the first 10 years of creditable service, 2 1/2% for each
13        year  above  10  years  to  and  including  20  years  of
14        creditable  service,  and  2  3/4%  for  each   year   of
15        creditable service above 20 years; and
16             (ii)  for  periods of eligible creditable service as
17        a covered employee: if  retirement  occurs  on  or  after
18        January  1,  2001, 2.5% of final average compensation for
19        each year of creditable  service;  if  retirement  occurs
20        before   January   1,   2001,   1.67%  of  final  average
21        compensation for each of  the  first  10  years  of  such
22        service,  1.90%  for  each  of  the next 10 years of such
23        service, 2.10% for each year of such service in excess of
24        20 but not exceeding 30,  and  2.30%  for  each  year  in
25        excess of 30.
26        Such  annuity  shall  be  subject  to a maximum of 75% of
27    final  average  compensation  if  retirement  occurs   before
28    January  1,  2001  or  to  a  maximum of 80% of final average
29    compensation if retirement occurs  on  or  after  January  1,
30    2001.
31        These  rates  shall  not  be  applicable  to  any service
32    performed by a member as a  covered  employee  which  is  not
33    eligible  creditable  service.  Service as a covered employee
34    which is not eligible creditable service shall be subject  to
 
                            -53-     LRB093 05642 EFG 17131 a
 1    the rates and provisions of Section 14-108.
 2        (b)  For   the   purpose   of   this  Section,  "eligible
 3    creditable service" means creditable service  resulting  from
 4    service in one or more of the following positions:
 5             (1)  State policeman;
 6             (2)  fire  fighter in the fire protection service of
 7        a department;
 8             (3)  air pilot;
 9             (4)  special agent;
10             (5)  investigator for the Secretary of State;
11             (6)  conservation police officer;
12             (7)  investigator for the Department of Revenue;
13             (8)  security employee of the  Department  of  Human
14        Services;
15             (9)  Central  Management  Services  security  police
16        officer;
17             (10)  security   employee   of   the  Department  of
18        Corrections;
19             (11)  dangerous drugs investigator;
20             (12)  investigator  for  the  Department  of   State
21        Police;
22             (13)  investigator  for  the  Office of the Attorney
23        General;
24             (14)  controlled substance inspector;
25             (15)  investigator for the  Office  of  the  State's
26        Attorneys Appellate Prosecutor;
27             (16)  Commerce Commission police officer;
28             (17)  arson investigator;
29             (18)  State highway maintenance worker;
30             (19)  military security police officer.
31        A  person  employed  in one of the positions specified in
32    this subsection is entitled to  eligible  creditable  service
33    for service credit earned under this Article while undergoing
34    the basic police training course approved by the Illinois Law
 
                            -54-     LRB093 05642 EFG 17131 a
 1    Enforcement  Training  Standards Board, if completion of that
 2    training is required of persons serving in that position. For
 3    the purposes of this Code, service during the required  basic
 4    police  training  course  shall  be deemed performance of the
 5    duties of the specified position, even though the  person  is
 6    not a sworn peace officer at the time of the training.
 7        (c)  For the purposes of this Section:
 8             (1)  The  term  "state policeman" includes any title
 9        or position in the Department of  State  Police  that  is
10        held  by  an  individual  employed under the State Police
11        Act.
12             (2)  The term "fire fighter in the  fire  protection
13        service  of  a  department" includes all officers in such
14        fire  protection  service  including  fire   chiefs   and
15        assistant fire chiefs.
16             (3)  The  term  "air  pilot"  includes  any employee
17        whose official job description on file in the  Department
18        of  Central  Management Services, or in the department by
19        which he is employed if that department is not covered by
20        the Personnel Code, states that his principal duty is the
21        operation  of  aircraft,  and  who  possesses  a  pilot's
22        license; however, the change in this definition  made  by
23        this  amendatory Act of 1983 shall not operate to exclude
24        any noncovered employee who was an "air  pilot"  for  the
25        purposes of this Section on January 1, 1984.
26             (4)  The  term  "special agent" means any person who
27        by reason of  employment  by  the  Division  of  Narcotic
28        Control,  the  Bureau  of Investigation or, after July 1,
29        1977,  the  Division  of  Criminal   Investigation,   the
30        Division  of  Internal  Investigation,  the  Division  of
31        Operations,  or  any  other  Division  or  organizational
32        entity in the Department of State Police is vested by law
33        with   duties   to  maintain  public  order,  investigate
34        violations of the criminal law of this State, enforce the
 
                            -55-     LRB093 05642 EFG 17131 a
 1        laws of this State, make arrests  and  recover  property.
 2        The  term  "special agent" includes any title or position
 3        in the Department of State Police  that  is  held  by  an
 4        individual employed under the State Police Act.
 5             (5)  The  term  "investigator  for  the Secretary of
 6        State" means any person employed by  the  Office  of  the
 7        Secretary  of  State  and  vested with such investigative
 8        duties as render him ineligible for  coverage  under  the
 9        Social  Security  Act by reason of Sections 218(d)(5)(A),
10        218(d)(8)(D) and 218(l)(1) of that Act.
11             A person who became employed as an investigator  for
12        the  Secretary  of  State  between  January  1,  1967 and
13        December 31, 1975, and  who  has  served  as  such  until
14        attainment  of  age  60,  either  continuously  or with a
15        single  break  in  service  of  not  more  than  3  years
16        duration, which break terminated before January 1,  1976,
17        shall   be   entitled  to  have  his  retirement  annuity
18        calculated    in   accordance   with   subsection    (a),
19        notwithstanding  that he has less than 20 years of credit
20        for such service.
21             (6)  The term "Conservation  Police  Officer"  means
22        any person employed by the Division of Law Enforcement of
23        the  Department of Natural Resources and vested with such
24        law enforcement  duties  as  render  him  ineligible  for
25        coverage  under  the  Social  Security  Act  by reason of
26        Sections 218(d)(5)(A),  218(d)(8)(D),  and  218(l)(1)  of
27        that   Act.    The  term  "Conservation  Police  Officer"
28        includes  the  positions  of  Chief  Conservation  Police
29        Administrator   and   Assistant    Conservation    Police
30        Administrator.
31             (7)  The  term  "investigator  for the Department of
32        Revenue" means any person employed by the  Department  of
33        Revenue  and  vested  with  such  investigative duties as
34        render him  ineligible  for  coverage  under  the  Social
 
                            -56-     LRB093 05642 EFG 17131 a
 1        Security   Act   by   reason  of  Sections  218(d)(5)(A),
 2        218(d)(8)(D) and 218(l)(1) of that Act.
 3             (8)  The term "security employee of  the  Department
 4        of  Human  Services"  means  any  person  employed by the
 5        Department of Human Services who (i) is employed  at  the
 6        Chester  Mental  Health Center and has daily contact with
 7        the residents thereof, (ii) is employed within a security
 8        unit at a facility operated by  the  Department  and  has
 9        daily  contact  with  the residents of the security unit,
10        (iii)  is  employed  at  a  facility  operated   by   the
11        Department that includes a security unit and is regularly
12        scheduled  to  work  at  least  50% of his or her working
13        hours within that security unit,  or  (iv)  is  a  mental
14        health  police  officer.  "Mental  health police officer"
15        means any person employed  by  the  Department  of  Human
16        Services  in  a  position  pertaining to the Department's
17        mental health and  developmental  disabilities  functions
18        who  is vested with such law enforcement duties as render
19        the person  ineligible  for  coverage  under  the  Social
20        Security   Act   by   reason  of  Sections  218(d)(5)(A),
21        218(d)(8)(D) and 218(l)(1) of that Act.  "Security  unit"
22        means  that  portion of a facility that is devoted to the
23        care, containment, and treatment of persons committed  to
24        the  Department  of  Human  Services  as sexually violent
25        persons, persons unfit to stand  trial,  or  persons  not
26        guilty  by  reason  of  insanity.   With  respect to past
27        employment,  references  to  the  Department   of   Human
28        Services  include  its  predecessor,  the  Department  of
29        Mental Health and Developmental Disabilities.
30             The  changes  made  to  this  subdivision  (c)(8) by
31        Public Act 92-14 apply to persons who retire on or  after
32        January 1, 2001, notwithstanding Section 1-103.1.
33             (9)  "Central  Management  Services  security police
34        officer" means any person employed by the  Department  of
 
                            -57-     LRB093 05642 EFG 17131 a
 1        Central  Management  Services who is vested with such law
 2        enforcement duties as render him ineligible for  coverage
 3        under  the  Social  Security  Act  by  reason of Sections
 4        218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
 5             (10)  The term "security employee of the  Department
 6        of  Corrections"  means any employee of the Department of
 7        Corrections or the former Department  of  Personnel,  and
 8        any  member or employee of the Prisoner Review Board, who
 9        has daily  contact  with  inmates  by  working  within  a
10        correctional  facility  or  who is a parole officer or an
11        employee who has direct contact with committed persons in
12        the performance of his or her job duties.
13             (11)  The term "dangerous drugs investigator"  means
14        any  person  who is employed as such by the Department of
15        Human Services.
16             (12)  The term "investigator for the  Department  of
17        State  Police"  means a person employed by the Department
18        of State Police who is vested  under  Section  4  of  the
19        Narcotic  Control  Division  Abolition  Act with such law
20        enforcement powers as render him ineligible for  coverage
21        under  the  Social  Security  Act  by  reason of Sections
22        218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
23             (13)  "Investigator for the Office of  the  Attorney
24        General"  means any person who is employed as such by the
25        Office of the Attorney General and is  vested  with  such
26        investigative   duties   as  render  him  ineligible  for
27        coverage under the  Social  Security  Act  by  reason  of
28        Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that
29        Act.   For  the  period  before January 1, 1989, the term
30        includes all persons who were employed  as  investigators
31        by  the Office of the Attorney General, without regard to
32        social security status.
33             (14)  "Controlled  substance  inspector"  means  any
34        person who is employed  as  such  by  the  Department  of
 
                            -58-     LRB093 05642 EFG 17131 a
 1        Professional  Regulation  and  is  vested  with  such law
 2        enforcement duties as render him ineligible for  coverage
 3        under  the  Social  Security  Act  by  reason of Sections
 4        218(d)(5)(A), 218(d)(8)(D) and  218(l)(1)  of  that  Act.
 5        The  term  "controlled  substance inspector" includes the
 6        Program  Executive  of  Enforcement  and  the   Assistant
 7        Program Executive of Enforcement.
 8             (15)  The  term  "investigator for the Office of the
 9        State's Attorneys Appellate Prosecutor"  means  a  person
10        employed  in that capacity on a full time basis under the
11        authority  of  Section  7.06  of  the  State's  Attorneys
12        Appellate Prosecutor's Act.
13             (16)  "Commerce Commission police officer" means any
14        person employed by the Illinois Commerce  Commission  who
15        is  vested with such law enforcement duties as render him
16        ineligible for coverage under the Social Security Act  by
17        reason   of   Sections  218(d)(5)(A),  218(d)(8)(D),  and
18        218(l)(1) of that Act.
19             (17)  "Arson investigator" means any person  who  is
20        employed  as such by the Office of the State Fire Marshal
21        and is vested with such law enforcement duties as  render
22        the  person  ineligible  for  coverage  under  the Social
23        Security  Act  by  reason   of   Sections   218(d)(5)(A),
24        218(d)(8)(D),  and  218(l)(1)  of that Act.  A person who
25        was employed as an arson investigator on January 1,  1995
26        and  is  no  longer  in  service  but not yet receiving a
27        retirement annuity may  convert  his  or  her  creditable
28        service  for  employment  as  an  arson investigator into
29        eligible creditable service by paying to the  System  the
30        difference  between  the  employee contributions actually
31        paid for that service and the  amounts  that  would  have
32        been  contributed  if  the applicant were contributing at
33        the rate applicable  to  persons  with  the  same  social
34        security  status  earning  eligible creditable service on
 
                            -59-     LRB093 05642 EFG 17131 a
 1        the date of application.
 2             (18)  The term "State  highway  maintenance  worker"
 3        means a person who is either of the following:
 4                  (i)  A  person employed on a full-time basis by
 5             the Illinois Department  of  Transportation  in  the
 6             position  of highway maintainer, highway maintenance
 7             lead worker, highway maintenance  lead/lead  worker,
 8             highway  construction  supervisor  (grade  1  or 2,)
 9             heavy construction equipment operator, power  shovel
10             operator,   sign   hanger,   sign   hanger  foreman,
11             silkscreen operator (but only when employed in  IDOT
12             District  9  and only if so employed in the District
13             on the effective date of this amendatory Act of  the
14             93rd  General  Assembly),  or  bridge  mechanic; and
15             whose principal responsibility is to perform, on the
16             roadway, the actual maintenance  necessary  to  keep
17             the  highways  that form a part of the State highway
18             system  in  serviceable  condition   for   vehicular
19             traffic.
20                  (ii)  A person employed on a full-time basis by
21             the  Illinois  State  Toll  Highway Authority in the
22             position   of   equipment   operator/laborer    H-4,
23             equipment    operator/laborer    H-6,  welder   H-4,
24             welder      H-6,     mechanical/electrical      H-4,
25             mechanical/electrical    H-6,    water/sewer    H-4,
26             water/sewer   H-6,   sign   maker/hanger  H-4,  sign
27             maker/hanger  H-6,  roadway  lighting  H-4,  roadway
28             lighting  H-6,  structural  H-4,   structural   H-6,
29             painter  H-4,  or  painter  H-6; and whose principal
30             responsibility is to perform, on  the  roadway,  the
31             actual maintenance necessary to keep the Authority's
32             tollways  in  serviceable  condition  for  vehicular
33             traffic.
34             (19)  "Military  security  police officer" means any
 
                            -60-     LRB093 05642 EFG 17131 a
 1        person employed by the Department of Military Affairs  in
 2        the  position  of  military security police I or military
 3        security  police  II  (or  the  predecessor  job   titles
 4        military security guard 1 or military security guard 2).
 5        (d)  A   security   employee   of   the   Department   of
 6    Corrections,  and  a  security  employee of the Department of
 7    Human Services who is not a  mental  health  police  officer,
 8    shall  not be eligible for the alternative retirement annuity
 9    provided by this Section unless he or she meets the following
10    minimum  age  and  service  requirements  at  the   time   of
11    retirement:
12             (i)  25 years of eligible creditable service and age
13        55; or
14             (ii)  beginning   January   1,  1987,  25  years  of
15        eligible creditable service and age 54, or  24  years  of
16        eligible creditable service and age 55; or
17             (iii)  beginning   January  1,  1988,  25  years  of
18        eligible creditable service and age 53, or  23  years  of
19        eligible creditable service and age 55; or
20             (iv)  beginning   January   1,  1989,  25  years  of
21        eligible creditable service and age 52, or  22  years  of
22        eligible creditable service and age 55; or
23             (v)  beginning January 1, 1990, 25 years of eligible
24        creditable  service  and  age 51, or 21 years of eligible
25        creditable service and age 55; or
26             (vi)  beginning  January  1,  1991,  25   years   of
27        eligible  creditable  service  and age 50, or 20 years of
28        eligible creditable service and age 55.
29        Persons who have service credit under Article 16 of  this
30    Code  for service as a security employee of the Department of
31    Corrections or the Department of Human Services in a position
32    requiring certification as a teacher may count  such  service
33    toward  establishing  their  eligibility  under  the  service
34    requirements  of  this  Section; but such service may be used
 
                            -61-     LRB093 05642 EFG 17131 a
 1    only for establishing  such  eligibility,  and  not  for  the
 2    purpose of increasing or calculating any benefit.
 3        (e)  If a member enters military service while working in
 4    a  position  in  which  eligible  creditable  service  may be
 5    earned, and returns to State service in the same  or  another
 6    such  position,  and  fulfills  in  all  other  respects  the
 7    conditions prescribed in this Article for credit for military
 8    service,  such military service shall be credited as eligible
 9    creditable service for the purposes of the retirement annuity
10    prescribed in this Section.
11        (f)  For purposes  of  calculating  retirement  annuities
12    under   this  Section,  periods  of  service  rendered  after
13    December 31, 1968 and before October 1,  1975  as  a  covered
14    employee  in  the  position  of  special  agent, conservation
15    police officer, mental health police officer, or investigator
16    for the Secretary of State, shall  be  deemed  to  have  been
17    service  as a noncovered employee, provided that the employee
18    pays to the System prior to retirement an amount equal to (1)
19    the difference between the employee contributions that  would
20    have been required for such service as a noncovered employee,
21    and  the amount of employee contributions actually paid, plus
22    (2) if payment is made after July 31, 1987, regular  interest
23    on  the amount specified in item (1) from the date of service
24    to the date of payment.
25        For purposes of calculating  retirement  annuities  under
26    this  Section, periods of service rendered after December 31,
27    1968 and before January 1, 1982 as a covered employee in  the
28    position  of investigator for the Department of Revenue shall
29    be deemed to have been  service  as  a  noncovered  employee,
30    provided  that  the  employee  pays  to  the  System prior to
31    retirement an amount equal to (1) the difference between  the
32    employee contributions that would have been required for such
33    service  as a noncovered employee, and the amount of employee
34    contributions actually paid, plus  (2)  if  payment  is  made
 
                            -62-     LRB093 05642 EFG 17131 a
 1    after  January  1,  1990,  regular  interest  on  the  amount
 2    specified in item (1) from the date of service to the date of
 3    payment.
 4        (g)  A  State policeman may elect, not later than January
 5    1, 1990, to establish eligible creditable service for  up  to
 6    10  years  of  his service as a policeman under Article 3, by
 7    filing a written election  with  the  Board,  accompanied  by
 8    payment  of an amount to be determined by the Board, equal to
 9    (i)  the  difference  between  the  amount  of  employee  and
10    employer  contributions  transferred  to  the  System   under
11    Section  3-110.5,  and  the  amounts  that  would  have  been
12    contributed  had  such  contributions  been made at the rates
13    applicable to State policemen, plus (ii) interest thereon  at
14    the  effective  rate for each year, compounded annually, from
15    the date of service to the date of payment.
16        Subject to the limitation  in  subsection  (i),  a  State
17    policeman  may  elect,  not  later  than  July  1,  1993,  to
18    establish  eligible  creditable service for up to 10 years of
19    his service as a member of the County Police Department under
20    Article 9, by filing  a  written  election  with  the  Board,
21    accompanied  by  payment of an amount to be determined by the
22    Board, equal to (i) the  difference  between  the  amount  of
23    employee and employer contributions transferred to the System
24    under  Section  9-121.10 and the amounts that would have been
25    contributed had those contributions been made  at  the  rates
26    applicable  to State policemen, plus (ii) interest thereon at
27    the effective rate for each year, compounded  annually,  from
28    the date of service to the date of payment.
29        (h)  Subject to the limitation in subsection (i), a State
30    policeman  or  investigator  for  the  Secretary of State may
31    elect to establish eligible creditable service for up  to  12
32    years  of  his  service  as  a  policeman under Article 5, by
33    filing a written election with the Board on or before January
34    31, 1992, and paying to the System by  January  31,  1994  an
 
                            -63-     LRB093 05642 EFG 17131 a
 1    amount  to  be  determined  by  the  Board,  equal to (i) the
 2    difference  between  the  amount  of  employee  and  employer
 3    contributions transferred to the System under Section  5-236,
 4    and  the  amounts  that  would have been contributed had such
 5    contributions been made at  the  rates  applicable  to  State
 6    policemen,  plus  (ii) interest thereon at the effective rate
 7    for each year, compounded annually, from the date of  service
 8    to the date of payment.
 9        Subject  to  the  limitation  in  subsection (i), a State
10    policeman, conservation police officer, or  investigator  for
11    the  Secretary  of  State  may  elect  to  establish eligible
12    creditable service for  up  to  10  years  of  service  as  a
13    sheriff's law enforcement employee under Article 7, by filing
14    a  written  election  with the Board on or before January 31,
15    1993, and paying to the System by January 31, 1994 an  amount
16    to  be  determined  by the Board, equal to (i) the difference
17    between the amount of  employee  and  employer  contributions
18    transferred  to  the  System  under  Section 7-139.7, and the
19    amounts  that  would   have   been   contributed   had   such
20    contributions  been  made  at  the  rates applicable to State
21    policemen, plus (ii) interest thereon at the  effective  rate
22    for  each year, compounded annually, from the date of service
23    to the date of payment.
24        (i)  The total  amount  of  eligible  creditable  service
25    established  by  any  person under subsections (g), (h), (j),
26    (k), and (l) of this Section shall not exceed 12 years.
27        (j)  Subject to the  limitation  in  subsection  (i),  an
28    investigator   for   the  Office  of  the  State's  Attorneys
29    Appellate Prosecutor or a controlled substance inspector  may
30    elect  to  establish eligible creditable service for up to 10
31    years of his service as a policeman  under  Article  3  or  a
32    sheriff's law enforcement employee under Article 7, by filing
33    a  written election with the Board, accompanied by payment of
34    an amount to be determined by the Board,  equal  to  (1)  the
 
                            -64-     LRB093 05642 EFG 17131 a
 1    difference  between  the  amount  of  employee  and  employer
 2    contributions transferred to the System under Section 3-110.6
 3    or  7-139.8, and the amounts that would have been contributed
 4    had such contributions been made at the rates  applicable  to
 5    State  policemen,  plus (2) interest thereon at the effective
 6    rate for each year, compounded annually,  from  the  date  of
 7    service to the date of payment.
 8        (k)  Subject  to the limitation in subsection (i) of this
 9    Section,  an  alternative  formula  employee  may  elect   to
10    establish  eligible creditable service for periods spent as a
11    full-time law enforcement officer  or  full-time  corrections
12    officer  employed  by the federal government or by a state or
13    local government  located  outside  of  Illinois,  for  which
14    credit  is not held in any other public employee pension fund
15    or retirement system.  To obtain this credit,  the  applicant
16    must  file  a written application with the Board by March 31,
17    1998, accompanied by evidence of  eligibility  acceptable  to
18    the  Board  and  payment of an amount to be determined by the
19    Board, equal to (1) employee  contributions  for  the  credit
20    being  established,  based upon the applicant's salary on the
21    first day  as  an  alternative  formula  employee  after  the
22    employment  for  which  credit  is  being established and the
23    rates then applicable to alternative formula employees,  plus
24    (2)  an  amount  determined by the Board to be the employer's
25    normal cost of the benefits  accrued  for  the  credit  being
26    established,  plus  (3)  regular  interest  on the amounts in
27    items (1) and (2)  from  the  first  day  as  an  alternative
28    formula  employee  after  the  employment for which credit is
29    being established to the date of payment.
30        (l)  Subject to  the  limitation  in  subsection  (i),  a
31    security employee of the Department of Corrections may elect,
32    not later than July 1, 1998, to establish eligible creditable
33    service  for  up  to  10  years  of  his  or her service as a
34    policeman under Article 3, by filing a written election  with
 
                            -65-     LRB093 05642 EFG 17131 a
 1    the  Board,  accompanied  by  payment  of  an  amount  to  be
 2    determined  by the Board, equal to (i) the difference between
 3    the amount of employee and employer contributions transferred
 4    to the System under Section 3-110.5,  and  the  amounts  that
 5    would  have been contributed had such contributions been made
 6    at  the  rates  applicable  to  security  employees  of   the
 7    Department  of Corrections, plus (ii) interest thereon at the
 8    effective rate for each year, compounded annually,  from  the
 9    date of service to the date of payment.
10    (Source: P.A.  91-357,  eff.  7-29-99;  91-760,  eff. 1-1-01;
11    92-14,  eff.  6-28-01;  92-257,  eff.  8-6-01;  92-651,  eff.
12    7-11-02.)

13        (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
14        Sec. 14-119.  Amount of widow's annuity.
15        (a)  The widow's annuity shall be 50% of  the  amount  of
16    retirement annuity payable to the member on the date of death
17    while  on  retirement  if an annuitant, or on the date of his
18    death while in service if an employee, regardless of his  age
19    on  such date, or on the date of withdrawal if death occurred
20    after termination of service under the conditions  prescribed
21    in the preceding Section.
22        (b)  If  an eligible widow, regardless of age, has in her
23    care any unmarried child or children of the member under  age
24    18 (under age 22 if a full-time student), the widow's annuity
25    shall  be  increased  in  the  amount of 5% of the retirement
26    annuity for each such child, but the combined payments for  a
27    widow  and  children shall not exceed 66 2/3% of the member's
28    earned retirement annuity.
29        The amount of retirement annuity from which  the  widow's
30    annuity is derived shall be that earned by the member without
31    regard  to whether he attained age 60 prior to his withdrawal
32    under the conditions stated or prior to his death.
33        (c)  Adopted children shall be considered as children  of
 
                            -66-     LRB093 05642 EFG 17131 a
 1    the   member  only  if  the  proceedings  for  adoption  were
 2    commenced at least 1 year prior to the member's death.
 3        Marriage of a child shall render the child ineligible for
 4    further consideration in the increase in the  amount  of  the
 5    widow's annuity.
 6        Attainment  of  age  18  (age  22 if a full-time student)
 7    shall render a child ineligible for further consideration  in
 8    the  increase  of the widow's annuity, but the annuity to the
 9    widow shall be continued thereafter, without  regard  to  her
10    age at that time.
11        (d)  Until  January 1, 2004, a widow's annuity payable on
12    account of any covered employee who has  shall  have  been  a
13    covered  employee  for at least 18 months shall be reduced by
14    1/2  of  the  amount  of  survivors  benefits  to  which  his
15    beneficiaries  are  eligible  under  the  provisions  of  the
16    Federal Social Security Act, except that (1)  the  amount  of
17    any  widow's  annuity payable under this Article shall not be
18    reduced by reason of any increase under that Act which occurs
19    after the offset required by this subsection is first applied
20    to that annuity, and (2) for benefits  granted  on  or  after
21    January  1,  1992, the offset under this subsection (d) shall
22    not exceed 50% of the amount  of  widow's  annuity  otherwise
23    payable.
24        Beginning   January   1,  2004,  the  offset  under  this
25    subsection (d) shall no longer  be  applied  to  any  widow's
26    annuity,  regardless  of whether the deceased employee was in
27    service on or after the effective date of this amendatory Act
28    of the 93rd General Assembly.
29        (e)  Upon the death of a recipient of a  widow's  annuity
30    the   excess,   if      any,   of  the  member's  accumulated
31    contributions  plus  credited  interest  over   all   annuity
32    payments  to the member and widow, exclusive of the $500 lump
33    sum payment, shall be paid to the named  beneficiary  of  the
34    widow, or if none has been named, to the estate of the widow,
 
                            -67-     LRB093 05642 EFG 17131 a
 1    provided no reversionary annuity is payable.
 2        (f)  On  January  1,  1981,  any  recipient  of a widow's
 3    annuity who was receiving a  widow's  annuity  on  or  before
 4    January  1,  1971,  shall have her widow's annuity then being
 5    paid increased by 1% for each full  year  which  has  elapsed
 6    from the date the widow's annuity began.  On January 1, 1982,
 7    any  recipient  of  a  widow's  annuity who began receiving a
 8    widow's annuity after January 1, 1971, but before January  1,
 9    1981,   shall  have  her  widow's  annuity  then  being  paid
10    increased by 1% for each full year which has elapsed from the
11    date the widow's annuity began.   On  January  1,  1987,  any
12    recipient  of  a  widow's  annuity  who  began  receiving the
13    widow's annuity on or before January 1, 1977, shall have  the
14    monthly  widow's  annuity  increased by $1 for each full year
15    which has elapsed since the date the annuity began.
16        (g)  Beginning January 1,  1990,  every  widow's  annuity
17    shall  be  increased  (1)  on  each January 1 occurring on or
18    after the commencement of the annuity if the deceased  member
19    died  while  receiving  a retirement annuity, or (2) in other
20    cases, on each January 1 occurring  on  or  after  the  first
21    anniversary  of the commencement of the annuity, by an amount
22    equal to 3% of the current amount of the  annuity,  including
23    any  previous  increases  under  this Article. Such increases
24    shall apply without regard to whether the deceased member was
25    in service on or after  the  effective  date  of  Public  Act
26    86-1488, but shall not accrue for any period prior to January
27    1, 1990.
28    (Source: P.A. 90-448, eff. 8-16-97.)

29        (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
30        Sec.  14-121.   Amount of survivors annuity.  A survivors
31    annuity beneficiary shall  be  entitled  upon  death  of  the
32    member  to  a  single sum payment of $1,000, payable pro rata
33    among all persons entitled thereto, together with a survivors
 
                            -68-     LRB093 05642 EFG 17131 a
 1    annuity  payable  at  the  rates  and  under  the  conditions
 2    specified in this Article.
 3        (a)  If the survivors annuity beneficiary  is  a  spouse,
 4    the   survivors   annuity  shall  be  30%  of  final  average
 5    compensation subject to a maximum payment of $400 per month.
 6        (b)  If an eligible child or children under the care of a
 7    spouse also survives  the  member,  such  spouse  as  natural
 8    guardian  of the child or children shall receive, in addition
 9    to the foregoing annuity, 20% of final  average  compensation
10    on  account  of  each  such  child  and  10% of final average
11    compensation divided pro rata among such children, subject to
12    a  maximum  payment  on  account  of  all  survivor   annuity
13    beneficiaries of $600 per month, or 80% of the member's final
14    average compensation, whichever is the lesser.
15        (c)  If    the    survivors    annuity   beneficiary   or
16    beneficiaries consists of an unmarried child or children, the
17    amount of survivors annuity shall be  20%  of  final  average
18    compensation   to  each  child,  and  10%  of  final  average
19    compensation  divided  pro  rata  among  all  such   children
20    entitled to such annuity, subject to a maximum payment to all
21    children  combined  of  $600 per month or 80% of the member's
22    final average compensation, whichever is the lesser.
23        (d)  If the survivors annuity beneficiary is one or  more
24    dependent  parents, the annuity shall be 20% of final average
25    compensation  to  each  parent  and  10%  of  final   average
26    compensation  divided  pro rata among the parents who qualify
27    for this annuity,  subject  to  a  maximum  payment  to  both
28    dependent parents of $400 per month.
29        (e)  The  survivors  annuity  to  the spouse, children or
30    dependent parents of a member whose death  occurs  after  the
31    date  of  last  withdrawal,  or after retirement, or while in
32    service following reentry into service after  retirement  but
33    before  completing  1  1/2  years  of  additional  creditable
34    service,  shall  not exceed the lesser of 80% of the member's
 
                            -69-     LRB093 05642 EFG 17131 a
 1    earned retirement annuity at the date of death or the maximum
 2    previously established in this Section.
 3        (f)  In  applying  the  limitation  prescribed   on   the
 4    combined   payments   to   2   or   more   survivors  annuity
 5    beneficiaries, the annuity on  account  of  each  beneficiary
 6    shall  be  reduced  pro rata until such time as the number of
 7    beneficiaries makes the reduction no longer applicable.
 8        (g)  Until January 1, 2004, a survivors  annuity  payable
 9    on  account of any covered employee who has shall have been a
10    covered employee for at least 18 months at date of  death  or
11    last  withdrawal, whichever is the later, shall be reduced by
12    1/2 of the survivors benefits to which his beneficiaries  are
13    eligible  under  the federal Social Security Act, except that
14    (1) the survivors annuity payable under  this  Article  shall
15    not  be  reduced  by any increase under that Act which occurs
16    after the offset required by this subsection is first applied
17    to that annuity, (2) for benefits granted on or after January
18    1, 1992, the offset  under  this  subsection  (g)  shall  not
19    exceed  50%  of  the  amount  of  survivors annuity otherwise
20    payable.
21        Beginning  January  1,  2004,  the  offset   under   this
22    subsection  (g)  shall  no longer be applied to any survivors
23    annuity, regardless of whether the deceased employee  was  in
24    service on or after the effective date of this amendatory Act
25    of the 93rd General Assembly.
26        (h)  The minimum payment to a beneficiary hereunder shall
27    be  $60  per month, which shall be reduced in accordance with
28    the limitation prescribed on the  combined  payments  to  all
29    beneficiaries of a member.
30        (i)  Subject  to  the  conditions  set  forth  in Section
31    14-120, the minimum total survivors annuity  benefit  payable
32    to  the  survivors annuity beneficiaries of a deceased member
33    or annuitant whose death occurs on or after January 1,  1984,
34    shall  be 50% of the amount of retirement annuity that was or
 
                            -70-     LRB093 05642 EFG 17131 a
 1    would have been payable to the deceased on the date of death,
 2    regardless of the age of the deceased on such date.   If  the
 3    minimum total benefit provided by this subsection exceeds the
 4    maximum  otherwise imposed by this Section, the minimum total
 5    benefit shall nevertheless be payable.  Any increase  in  the
 6    total  survivors annuity benefit resulting from the operation
 7    of this subsection  shall  be  divided  among  the  survivors
 8    annuity  beneficiaries of the deceased in proportion to their
 9    shares of  the  total  survivors  annuity  benefit  otherwise
10    payable under this Section.
11        (j)  Any  survivors  annuity  beneficiary  whose  annuity
12    terminates  due  to  any  condition specified in this Article
13    other than death shall be entitled to a refund of the excess,
14    if any, of the accumulated contributions of the  member  plus
15    credited  interest  over  all  payments  to  the  member  and
16    beneficiary  or  beneficiaries,  exclusive  of the single sum
17    payment  of  $1,000,  provided   no   future   survivors   or
18    reversionary annuity benefits are payable.
19        (k)  Upon  the  death of the last eligible recipient of a
20    survivors  annuity  the  excess,  if  any,  of  the  member's
21    accumulated contributions plus  credited  interest  over  all
22    annuity payments to the member and survivors exclusive of the
23    single  sum  payment  of  $1000,  shall  be paid to the named
24    beneficiary of the last eligible survivor,  or  if  none  has
25    been  named,  to  the  estate  of the last eligible survivor,
26    provided no reversionary annuity is payable.
27        (l)  On January 1, 1981, any survivor who was receiving a
28    survivors annuity on or before January 1,  1971,  shall  have
29    his  survivors  annuity  then  being paid increased by 1% for
30    each full year which has elapsed from the  date  the  annuity
31    began.   On January 1, 1982, any survivor who began receiving
32    a survivor's  annuity  after  January  1,  1971,  but  before
33    January 1, 1981, shall have his survivor's annuity then being
34    paid increased by 1% for each full year that has elapsed from
 
                            -71-     LRB093 05642 EFG 17131 a
 1    the  date the annuity began. On January 1, 1987, any survivor
 2    who began receiving a survivor's annuity on or before January
 3    1, 1977, shall have the monthly survivor's annuity  increased
 4    by $1 for each full year which has elapsed since the date the
 5    survivor's annuity began.
 6        (m)  Beginning  January 1, 1990, every survivor's annuity
 7    shall be increased (1) on each  January  1  occurring  on  or
 8    after  the commencement of the annuity if the deceased member
 9    died while receiving a retirement annuity, or  (2)  in  other
10    cases,  on  each  January  1  occurring on or after the first
11    anniversary of the commencement of the annuity, by an  amount
12    equal  to  3% of the current amount of the annuity, including
13    any previous increases under this Article.    Such  increases
14    shall apply without regard to whether the deceased member was
15    in  service  on  or  after  the  effective date of Public Act
16    86-1488, but shall not accrue for any period prior to January
17    1, 1990.
18    (Source: P.A. 86-273; 86-1488; 87-794.)

19        (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
20        Sec.   16-106.  Teacher.    "Teacher":   The    following
21    individuals,  provided  that, for employment prior to July 1,
22    1990, they are employed on  a  full-time  basis,  or  if  not
23    full-time,  on a permanent and continuous basis in a position
24    in which services are expected to be rendered  for  at  least
25    one school term:
26             (1)  Any  educational,  administrative, professional
27        or other staff employed  in  the  public  common  schools
28        included  within  this  system  in  a  position requiring
29        certification under the law governing  the  certification
30        of teachers;
31             (2)  Any  educational,  administrative, professional
32        or other staff employed in any facility of the Department
33        of Children and Family  Services  or  the  Department  of
 
                            -72-     LRB093 05642 EFG 17131 a
 1        Human  Services,  in  a  position requiring certification
 2        under the law governing the  certification  of  teachers,
 3        and  any  person who (i) works in such a position for the
 4        Department of Corrections, (ii)  was  a  member  of  this
 5        System on May 31, 1987, and (iii) did not elect to become
 6        a  member  of  the  State  Employees'  Retirement  System
 7        pursuant  to  Section  14-108.2 of this Code; except that
 8        "teacher" does not include any person who (A)  becomes  a
 9        security employee of the Department of Human Services, as
10        defined  in  Section  14-110,  after  June  28, 2001 (the
11        effective date of Public Act 92-14),  or  (B)  becomes  a
12        member of the State Employees' Retirement System pursuant
13        to Section 14-108.2c of this Code;
14             (3)  Any   regional   superintendent   of   schools,
15        assistant   regional  superintendent  of  schools,  State
16        Superintendent of Education; any person employed  by  the
17        State  Board  of Education as an executive; any executive
18        of the boards engaged in the  service  of  public  common
19        school  education  in school districts covered under this
20        system of which the State Superintendent of Education  is
21        an ex-officio member;
22             (4)  Any  employee  of  a  school  board association
23        operating in compliance with Article  23  of  the  School
24        Code  who  is  certificated  under  the law governing the
25        certification of teachers;
26             (5)  Any person employed by  the  retirement  system
27        who:
28                  (i)  was  an  employee  of and a participant in
29             the system on August 17, 2001 (the effective date of
30             Public Act 92-416), or
31                  (ii)  was an employee of but not a  participant
32             in   the  system  on  the  effective  date  of  this
33             amendatory Act of the 93rd General Assembly, and has
34             thereafter  become  employed  by  the  system  in  a
 
                            -73-     LRB093 05642 EFG 17131 a
 1             different position and made an irrevocable  election
 2             to begin participating in the system, or
 3                  (iii)  becomes  an employee of the system on or
 4             after August 17, 2001;
 5             (6)  Any educational,  administrative,  professional
 6        or  other staff employed by and under the supervision and
 7        control of a regional superintendent of schools, provided
 8        such  employment  position  requires  the  person  to  be
 9        certificated under the law governing the certification of
10        teachers and is in an educational program  serving  2  or
11        more  districts  in  accordance  with  a  joint agreement
12        authorized by the School Code or by federal legislation;
13             (7)  Any educational,  administrative,  professional
14        or  other  staff  employed  in   an  educational  program
15        serving  2  or more school districts in accordance with a
16        joint agreement authorized  by  the  School  Code  or  by
17        federal   legislation   and   in   a  position  requiring
18        certification under the laws governing the  certification
19        of teachers;
20             (8)  Any  officer or employee of a statewide teacher
21        organization   or   officer   of   a   national   teacher
22        organization who is certified  under  the  law  governing
23        certification  of  teachers, provided: (i) the individual
24        had previously established creditable service under  this
25        Article,  (ii)  the  individual  files with the system an
26        irrevocable election to become a member,  and  (iii)  the
27        individual does not receive credit for such service under
28        any other Article of this Code;
29             (9)  Any  educational, administrative, professional,
30        or other staff employed in a charter school operating  in
31        compliance   with   the   Charter   Schools  Law  who  is
32        certificated under the law governing the certification of
33        teachers.
34        An annuitant receiving a retirement  annuity  under  this
 
                            -74-     LRB093 05642 EFG 17131 a
 1    Article  or  under Article 17 of this Code who is temporarily
 2    employed by a  board  of  education  or  other  employer  not
 3    exceeding  that  permitted  under  Section  16-118  is  not a
 4    "teacher" for purposes of this Article.   A  person  who  has
 5    received   a  single-sum  retirement  benefit  under  Section
 6    16-136.4 of this Article is not a "teacher" for  purposes  of
 7    this Article.
 8    (Source: P.A.  92-14,  eff.  6-28-01;  92-416,  eff. 8-17-01;
 9    92-651, eff. 7-11-02.)

10        (40 ILCS 5/16-113) (from Ch. 108 1/2, par. 16-113)
11        Sec. 16-113.  Accumulated  contributions.    "Accumulated
12    contributions":  The  sum of all contributions to this System
13    made by or on behalf of a member  in  respect  to  membership
14    service  and  credited  to  his or her account in the Benefit
15    Trust Reserve Members' Contribution  Reserve,  together  with
16    regular interest thereon.
17    (Source: P.A. 83-1440.)

18        (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
19        Sec. 16-127.  Computation of creditable service.
20        (a)  Each  member  shall  receive  regular credit for all
21    service as a teacher from the  date  membership  begins,  for
22    which satisfactory evidence is supplied and all contributions
23    have been paid.
24        (b)  The following periods of service shall earn optional
25    credit  and  each  member  shall  receive credit for all such
26    service for which satisfactory evidence is supplied  and  all
27    contributions have been paid as of the date specified:
28             (1)  Prior service as a teacher.
29             (2)  Service  in  a  capacity essentially similar or
30        equivalent to that of a teacher,  in  the  public  common
31        schools  in  school  districts in this State not included
32        within the provisions of this System,  or  of  any  other
 
                            -75-     LRB093 05642 EFG 17131 a
 1        State,  territory, dependency or possession of the United
 2        States, or in schools operated by or under  the  auspices
 3        of the United States, or under the auspices of any agency
 4        or  department of any other State, and service during any
 5        period  of  professional  speech  correction  or  special
 6        education experience for  a  public  agency  within  this
 7        State  or  any  other  State,  territory,  dependency  or
 8        possession  of  the  United  States, and service prior to
 9        February 1, 1951 as a recreation worker for the  Illinois
10        Department  of  Public Safety, for a period not exceeding
11        the lesser of 2/5 of the total creditable service of  the
12        member  or  10  years.   The  maximum service of 10 years
13        which is allowable under this paragraph shall be  reduced
14        by  the  service  credit  which  is  validated  by  other
15        retirement  systems under paragraph (i) of Section 15-113
16        and paragraph 1 of Section 17-133.  Credit granted  under
17        this  paragraph  may  not  be  used in determination of a
18        retirement annuity  or  disability  benefits  unless  the
19        member  has at least 5 years of creditable service earned
20        subsequent to this employment with one  or  more  of  the
21        following  systems:  Teachers'  Retirement  System of the
22        State of Illinois, State Universities Retirement  System,
23        and  the  Public  School Teachers' Pension and Retirement
24        Fund of Chicago.  Whenever such  service  credit  exceeds
25        the maximum allowed for all purposes of this Article, the
26        first   service  rendered  in  point  of  time  shall  be
27        considered. The changes to this subdivision  (b)(2)  made
28        by  Public Act 86-272 shall apply not only to persons who
29        on or after its effective date (August 23, 1989)  are  in
30        service  as  a  teacher  under  the  System,  but also to
31        persons whose status as such a teacher  terminated  prior
32        to  such effective date, whether or not such person is an
33        annuitant on that date.
34             (3)  Any  periods  immediately  following   teaching
 
                            -76-     LRB093 05642 EFG 17131 a
 1        service,  under  this  System  or  under  Article 17, (or
 2        immediately following service prior to February  1,  1951
 3        as  a  recreation  worker  for the Illinois Department of
 4        Public Safety) spent in active service with the  military
 5        forces of the United States; periods spent in educational
 6        programs that prepare for return to teaching sponsored by
 7        the  federal  government  following  such active military
 8        service; if a teacher returns to teaching service  within
 9        one calendar year after discharge or after the completion
10        of   the  educational  program,  a  further  period,  not
11        exceeding  one  calendar  year,  between  time  spent  in
12        military service or in such educational programs and  the
13        return  to employment as a teacher under this System; and
14        a period of up to 2 years of active military service  not
15        immediately following employment as a teacher.
16             The  changes  to  this  Section  and  Section 16-128
17        relating to military service made by  P.A.  87-794  shall
18        apply  not  only to persons who on or after its effective
19        date are in service as a teacher under  the  System,  but
20        also  to  persons  whose  status  as a teacher terminated
21        prior to that date, whether  or  not  the  person  is  an
22        annuitant  on that date.  In the case of an annuitant who
23        applies for credit allowable under  this  Section  for  a
24        period  of  military  service  that  did  not immediately
25        follow  employment,  and  who  has  made   the   required
26        contributions  for  such  credit,  the  annuity  shall be
27        recalculated to include the  additional  service  credit,
28        with  the  increase  taking effect on the date the System
29        received written notification of the  annuitant's  intent
30        to  purchase  the  credit, if payment of all the required
31        contributions is made within 60 days of such  notice,  or
32        else on the first annuity payment date following the date
33        of payment of the required contributions.  In calculating
34        the  automatic  annual  increase  for an annuity that has
 
                            -77-     LRB093 05642 EFG 17131 a
 1        been recalculated  under    this  Section,  the  increase
 2        attributable  to  the  additional service allowable under
 3        P.A. 87-794 shall  be  included  in  the  calculation  of
 4        automatic  annual  increases accruing after the effective
 5        date of the recalculation.
 6             Credit for military service shall be  determined  as
 7        follows:  if  entry  occurs  during  the  months of July,
 8        August, or September and the member was a teacher at  the
 9        end  of  the  immediately  preceding  school term, credit
10        shall be granted from July 1 of the year in which  he  or
11        she  entered  service;  if entry occurs during the school
12        term and the teacher  was  in  teaching  service  at  the
13        beginning  of  the  school  term, credit shall be granted
14        from July 1 of such year. In all other cases where credit
15        for military service is allowed, credit shall be  granted
16        from the date of entry into the service.
17             The  total  period  of  military  service  for which
18        credit is granted shall not exceed 5 years for any member
19        unless the service:  (A)  is  validated  before  July  1,
20        1964,  and  (B)  does  not  extend  beyond  July 1, 1963.
21        Credit for military service shall be granted  under  this
22        Section  only  if  not  more than 5 years of the military
23        service for which credit is granted under this Section is
24        used by the member to qualify for a  military  retirement
25        allotment  from  any  branch  of  the armed forces of the
26        United States. The changes  to  this  subdivision  (b)(3)
27        made by Public Act 86-272 shall apply not only to persons
28        who  on or after its effective date (August 23, 1989) are
29        in service as a teacher under the  System,  but  also  to
30        persons  whose  status as such a teacher terminated prior
31        to such effective date, whether or not such person is  an
32        annuitant on that date.
33             (4)  Any  periods  served as a member of the General
34        Assembly.
 
                            -78-     LRB093 05642 EFG 17131 a
 1             (5)(i)  Any periods for which a teacher, as  defined
 2        in  Section  16-106,  is  granted  a  leave  of  absence,
 3        provided he or she returns to teaching service creditable
 4        under  this  System  or the State Universities Retirement
 5        System following the leave; (ii) periods during  which  a
 6        teacher is involuntarily laid off from teaching, provided
 7        he  or  she  returns  to  teaching following the lay-off;
 8        (iii) periods prior  to  July  1,  1983  during  which  a
 9        teacher  ceased  covered employment under this Article or
10        Article 17 due to pregnancy, provided  that  the  teacher
11        returned to teaching service creditable under this System
12        or the State Universities Retirement System following the
13        pregnancy  and submits evidence satisfactory to the Board
14        documenting that the employment ceased due to  pregnancy;
15        and  (iv)  periods  prior  to July 1, 1983 during which a
16        teacher ceased covered  employment  for  the  purpose  of
17        adopting  an  infant under 3 years of age or caring for a
18        newly adopted infant under 3 years of age, provided  that
19        the teacher returned to teaching service creditable under
20        this  System  or the State Universities Retirement System
21        following the adoption and submits evidence  satisfactory
22        to  the  Board documenting that the employment ceased for
23        the purpose of adopting an infant under 3 years of age or
24        caring for a newly adopted infant under 3 years  of  age.
25        However,  total  credit  under this paragraph (5) may not
26        exceed 3 years.
27             Any qualified member  or  annuitant  may  apply  for
28        credit  under  item  (iii)  or (iv) of this paragraph (5)
29        without regard to whether service was  terminated  before
30        the  effective  date  of this amendatory Act of 1997.  In
31        the case of an annuitant  who  establishes  credit  under
32        item  (iii) or (iv), the annuity shall be recalculated to
33        include the additional service credit.  The  increase  in
34        annuity shall take effect on the date the System receives
 
                            -79-     LRB093 05642 EFG 17131 a
 1        written   notification   of  the  annuitant's  intent  to
 2        purchase  the  credit,  if  the  required   evidence   is
 3        submitted  and  the  required contribution paid within 60
 4        days of that notification, otherwise on the first annuity
 5        payment  date  following  the  System's  receipt  of  the
 6        required evidence and contribution.  The increase  in  an
 7        annuity   recalculated  under  this  provision  shall  be
 8        included in the calculation of automatic annual increases
 9        in the annuity accruing after the effective date  of  the
10        recalculation.
11             Optional   credit   may   be  purchased  under  this
12        subsection (b)(5) for periods during which a teacher  has
13        been granted a leave of absence pursuant to Section 24-13
14        of  the  School Code.  A teacher whose service under this
15        Article terminated prior to the effective  date  of  P.A.
16        86-1488  shall  be  eligible  to  purchase  such optional
17        credit.  If a teacher who purchases this optional  credit
18        is  already  receiving  a  retirement  annuity under this
19        Article, the annuity shall  be  recalculated  as  if  the
20        annuitant  had applied for the leave of absence credit at
21        the time  of  retirement.   The  difference  between  the
22        entitled annuity and the actual annuity shall be credited
23        to the purchase of the optional credit.  The remainder of
24        the purchase cost of the optional credit shall be paid on
25        or before April 1, 1992.
26             The  change  in  this  paragraph  made by Public Act
27        86-273 shall be applicable to teachers who  retire  after
28        June  1,  1989, as well as to teachers who are in service
29        on that date.
30             (6)  Any   days   of   unused   and    uncompensated
31        accumulated  sick leave earned by a teacher.  The service
32        credit granted under this paragraph shall be the ratio of
33        the number of unused and uncompensated  accumulated  sick
34        leave  days  to 170 days, subject to a maximum of 2 years
 
                            -80-     LRB093 05642 EFG 17131 a
 1        of service credit.  Prior  to  the  member's  retirement,
 2        each  former  employer  shall  certify  to the System the
 3        number of unused and uncompensated accumulated sick leave
 4        days credited to the member at the time of termination of
 5        service. The period of unused sick  leave  shall  not  be
 6        considered   in   determining   the   effective  date  of
 7        retirement.   A  member   is   not   required   to   make
 8        contributions  in  order  to  obtain  service  credit for
 9        unused sick leave.
10             Credit for  sick  leave  shall,  at  retirement,  be
11        granted  by  the  System  for  any  retiring  regional or
12        assistant regional superintendent of schools at the  rate
13        of  6  days  per  year  of  creditable service or portion
14        thereof established while serving as such  superintendent
15        or assistant superintendent.
16             (7)  Periods  prior to February 1, 1987 served as an
17        employee of the Illinois Mathematics and Science  Academy
18        for  which  credit  has not been terminated under Section
19        15-113.9 of this Code.
20             (8)  Service  as  a  substitute  teacher  for   work
21        performed prior to July 1, 1990.
22             (9)  Service   as   a  part-time  teacher  for  work
23        performed prior to July 1, 1990.
24             (10)  Up to 2  years  of  employment  with  Southern
25        Illinois  University  - Carbondale from September 1, 1959
26        to August 31, 1961, or with  Governors  State  University
27        from  September 1, 1972 to August 31, 1974, for which the
28        teacher has no  credit  under  Article  15.   To  receive
29        credit  under  this  item  (10),  a teacher must apply in
30        writing to the Board and pay the  required  contributions
31        before  May 1, 1993 and have at least 12 years of service
32        credit under this Article.
33        (b-1)  A member may establish optional credit for up to 2
34    years of service as a teacher or administrator employed by  a
 
                            -81-     LRB093 05642 EFG 17131 a
 1    private  school  recognized  by  the  Illinois State Board of
 2    Education, provided that the teacher (i) was certified  under
 3    the  law  governing the certification of teachers at the time
 4    the service was rendered, (ii) applies in writing on or after
 5    June 1, 2002 and on or before June 1,  2005,  (iii)  supplies
 6    satisfactory  evidence  of  the employment, (iv) completes at
 7    least 10 years  of  contributing  service  as  a  teacher  as
 8    defined  in  Section  16-106,  and  (v) pays the contribution
 9    required in subsection (d-5) of Section 16-128.   The  member
10    may  apply  for  credit  under  this  subsection  and pay the
11    required contribution  before  completing  the  10  years  of
12    contributing service required under item (iv), but the credit
13    may  not  be  used  until  the item (iv) contributing service
14    requirement has been met.
15        (c)  The service credits specified in this Section  shall
16    be granted only if: (1) such service credits are not used for
17    credit  in  any other statutory tax-supported public employee
18    retirement system other  than  the  federal  Social  Security
19    program;  and (2) the member makes the required contributions
20    as specified  in  Section  16-128.   Except  as  provided  in
21    subsection (b-1) of this Section, the service credit shall be
22    effective  as  of  the  date  the  required contributions are
23    completed.
24        Any service credits  granted  under  this  Section  shall
25    terminate upon cessation of membership for any cause.
26        Credit may not be granted under this Section covering any
27    period  for  which an age retirement or disability retirement
28    allowance has been paid.
29    (Source: P.A. 92-867, eff. 1-3-03.)

30        (40 ILCS 5/16-129.1)
31        Sec. 16-129.1.  Optional increase in retirement annuity.
32        (a)  A member of the System may qualify for the augmented
33    rate under subdivision (a)(B)(1) of Section  16-133  for  all
 
                            -82-     LRB093 05642 EFG 17131 a
 1    years  of  creditable  service  earned before July 1, 1998 by
 2    making the optional contribution specified in subsection (b).
 3    A member may not elect to qualify for the augmented rate  for
 4    only a portion of his or her creditable service earned before
 5    July 1, 1998.
 6        (b)  The contribution shall be an amount equal to 1.0% of
 7    the  member's highest salary rate in the 4 consecutive school
 8    years immediately prior to but not including the school  year
 9    in  which the application occurs, multiplied by the number of
10    years of creditable service earned by the member before  July
11    1, 1998 or 20, whichever is less.  This contribution shall be
12    reduced by 1.0% of that salary rate for every 3 full years of
13    creditable  service earned by the member after June 30, 1998.
14    The contribution shall be further reduced at the rate of  25%
15    of  the  contribution  (as reduced for service after June 30,
16    1998) for each year of the member's total creditable  service
17    in  excess  of  34  years.  The contribution shall not in any
18    event exceed 20% of that salary rate.
19        The member shall pay to the  System  the  amount  of  the
20    contribution  as  calculated at the time of application under
21    this Section.  The  amount  of  the  contribution  determined
22    under  this  subsection  shall be recalculated at the time of
23    retirement, and if the System determines that the amount paid
24    by the member exceeds the  recalculated  amount,  the  System
25    shall  refund  the  difference  to  the  member  with regular
26    interest from the date of payment to the date of refund.
27        The contribution required by  this  subsection  shall  be
28    paid  in one of the following ways or in a combination of the
29    following ways that does not extend over more than 5 years:
30             (i)  in  a  lump  sum  on  or  before  the  date  of
31        retirement;
32             (ii)  in substantially  equal  installments  over  a
33        period of time not to exceed 5 years, as a deduction from
34        salary  in  accordance  with  subsection  (b)  of Section
 
                            -83-     LRB093 05642 EFG 17131 a
 1        16-154;
 2             (iii)  if the member  becomes  an  annuitant  before
 3        June   30,   2003,   in   substantially   equal   monthly
 4        installments  over  a  24-month  period,  by reducing the
 5        annuitant's monthly benefit over a 24-month period by the
 6        amount of the  otherwise  applicable  contribution.   For
 7        federal  and Illinois tax purposes, the monthly amount by
 8        which the annuitant's benefit is  reduced  shall  not  be
 9        treated as a contribution by the annuitant, but rather as
10        a reduction of the annuitant's monthly benefit.
11        (c)  If  the  member  fails to make the full contribution
12    under this Section in a timely  fashion,  the  payments  made
13    under  this  Section shall be refunded to the member, without
14    interest.   If  the  member  dies  before  making  the   full
15    contribution,  the payments made under this Section, together
16    with regular interest  thereon,  shall  be  refunded  to  the
17    member's  designated  beneficiary  for benefits under Section
18    16-138.
19        (d)  For  purposes  of  this  Section   and   subdivision
20    (a)(B)(1)  of  Section  16-133,  optional  creditable service
21    established by a member shall be deemed to have  been  earned
22    at  the time of the employment or other qualifying event upon
23    which the service is based,  rather  than  at  the  time  the
24    credit was established in this System.
25        (e)  The  contributions  required  under this Section are
26    the responsibility of  the  teacher  and  not  the  teacher's
27    employer.   However,  an  employer of teachers may, after the
28    effective date of this amendatory Act of  1998,  specifically
29    agree,  through  collective  bargaining or otherwise, to make
30    the contributions required by this Section on behalf of those
31    teachers.
32        (f)  A person who, on or after July 1,  1998  and  before
33    June 4, 1999, began receiving a retirement annuity calculated
34    at  the  augmented  rate  may  apply  in  writing to have the
 
                            -84-     LRB093 05642 EFG 17131 a
 1    annuity recalculated to reflect the changes to  this  Section
 2    and  Section  16-133  that  were enacted in Public Act 91-17.
 3    The  amount  of  any  resulting  decrease  in  the   optional
 4    contribution  shall  be  refunded  to  the annuitant, without
 5    interest.  Any resulting increase in retirement annuity shall
 6    take effect on the next annuity payment  date  following  the
 7    date of application under this subsection.
 8    (Source: P.A. 91-17, eff. 6-4-99; 92-416, eff. 8-17-01.)

 9        (40 ILCS 5/16-133.2) (from Ch. 108 1/2, par. 16-133.2)
10        Sec.  16-133.2.  Early  retirement  without  discount.  A
11    member retiring after June 1, 1980 and on or before June  30,
12    2005,  and  applying for a retirement annuity within 6 months
13    of  the  last  day   of   teaching   for   which   retirement
14    contributions  were  required,  may  elect  at  the  time  of
15    application  for  a  retirement  annuity,  to make a one time
16    member contribution to  the  System  and  thereby  avoid  the
17    reduction in the retirement annuity for retirement before age
18    60  specified  in  paragraph  (B)  of  Section  16-133.   The
19    exercise  of  the  election  shall  also  obligate  the  last
20    employer  to  make  a one time non-refundable contribution to
21    the System.  Substitute teachers  wishing  to  exercise  this
22    election  must  teach 85 or more days in one school term with
23    one employer, who shall  be  deemed  the  last  employer  for
24    purposes of this Section.  The last day of teaching with that
25    employer  must  be within 6 months of the date of application
26    for  retirement.   All  substitute  teaching  credit  applied
27    toward the required 85 days must be  earned  after  June  30,
28    1990.
29        The one time member and employer contributions shall be a
30    percentage  of  the  retiring  member's highest annual salary
31    rate used in the determination  of  the  average  salary  for
32    retirement  annuity  purposes.  However, when determining the
33    one-time member and employer contributions, that  part  of  a
 
                            -85-     LRB093 05642 EFG 17131 a
 1    member's  salary  with  the  same  employer which exceeds the
 2    annual salary rate for the preceding year by  more  than  20%
 3    shall  be  excluded.  The member contribution shall be at the
 4    rate of 7% for the lesser of the following  2  periods:   (1)
 5    for each year that the member is less than age 60; or (2) for
 6    each  year  that the member's creditable service is less than
 7    35 years.  If a member is at least age 55 and has at least 34
 8    years  of  creditable  service,   no   member   or   employer
 9    contribution   for  the  early  retirement  option  shall  be
10    required.  The employer contribution shall be at the rate  of
11    20% for each year the member is under age 60.
12        Upon  receipt of the application and election, the System
13    shall  determine  the  one   time   employee   and   employer
14    contributions  required.   The  member  contribution shall be
15    credited to the individual account  of  the  member  and  the
16    employer  contribution shall be credited to the Benefit Trust
17    Reserve Employer's Contribution Reserve.  The  provisions  of
18    this  Section  shall  not  be  applicable  until the member's
19    contribution, if  any,  has  been  received  by  the  System;
20    however,  the  date such contributions are received shall not
21    be  considered  in  determining   the   effective   date   of
22    retirement.
23        The  number  of members working for a single employer who
24    may retire under this Section in any year may be  limited  at
25    the option of the employer to a specified percentage of those
26    eligible, not less than 30%, with the right to participate to
27    be  allocated  among those applying on the basis of seniority
28    in the service of the employer.
29    (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.)

30        (40 ILCS 5/16-133.3) (from Ch. 108 1/2, par. 16-133.3)
31        Sec. 16-133.3.  Early  retirement  incentives  for  State
32    employees.
33        (a)  To  be  eligible  for  the benefits provided in this
 
                            -86-     LRB093 05642 EFG 17131 a
 1    Section, a person must:
 2             (1)  be a member of this  System  who,  on  any  day
 3        during  June,  2002, is (i) in active payroll status as a
 4        full-time teacher employed by a department and an  active
 5        contributor   to   this   System  with  respect  to  that
 6        employment, or (ii) on layoff status from such a position
 7        with a right of re-employment or recall  to  service,  or
 8        (iii) receiving a disability benefit under Section 16-149
 9        or  16-149.1,  but  only  if  the  member  has  not  been
10        receiving  that  benefit  for a continuous period of more
11        than 2 years as of the date of application;
12             (2)  not have received any retirement annuity  under
13        this Article beginning earlier than August 1, 2002;
14             (3)  file  with  the Board on or before December 31,
15        2002  a  written  application  requesting  the   benefits
16        provided in this Section;
17             (4)  terminate  employment  under  this  Article  no
18        later  than  December  31,  2002 (or the date established
19        under subsection (d), if applicable);
20             (5)  by the date of termination of service, have  at
21        least  8  years of creditable service under this Article,
22        without the use of  any  creditable  service  established
23        under this Section;
24             (6)  by  the date of termination of service, have at
25        least  5   years   of   service   credit   earned   while
26        participating  in  the  System as a teacher employed by a
27        department; and
28             (7)  not receive any early retirement benefit  under
29        Section 14-108.3 of this Code.
30        For  the  purposes  of this Section, "department" means a
31    department as defined in Section  14-103.04  that  employs  a
32    teacher as defined in this Article.
33        (b)  An  eligible  person  may establish up to 5 years of
34    creditable  service  under  this  Article   by   making   the
 
                            -87-     LRB093 05642 EFG 17131 a
 1    contributions  specified in subsection (c).  In addition, for
 2    each period of  creditable  service  established  under  this
 3    Section,  a  person's age at retirement shall be deemed to be
 4    enhanced by an equivalent period.
 5        The creditable service established under this Section may
 6    be  used  for  all  purposes  under  this  Article  and   the
 7    Retirement Systems Reciprocal Act, except for the computation
 8    of  final  average  salary,  the  determination  of salary or
 9    compensation under this Article or any other Article of  this
10    Code,   or  the  determination  of  eligibility  for  or  the
11    computation of benefits under Section 16-133.2.
12        The age enhancement established under this Section may be
13    used  for  all  purposes  under   this   Article   (including
14    calculation of a proportionate annuity payable by this System
15    under  the  Retirement  Systems  Reciprocal  Act), except for
16    purposes of a retirement annuity under Section  16-133(a)(A),
17    a  reversionary  annuity  under  Section 16-136, the required
18    distributions under Section 16-142.3, and  the  determination
19    of  eligibility  for  or  the  computation  of benefits under
20    Section 16-133.2.  Age  enhancement  established  under  this
21    Section  may  be  used  in determining benefits payable under
22    Article  14  of  this  Code  under  the  Retirement   Systems
23    Reciprocal  Act (subject to the limitations on the use of age
24    enhancement provided in Section  14-108.3);  age  enhancement
25    established   under   this  Section  shall  not  be  used  in
26    determining benefits payable under  other  Articles  of  this
27    Code under the Retirement Systems Reciprocal Act.
28        (c)  For  all  creditable  service established under this
29    Section,  a  person  must  pay  to  the  System  an  employee
30    contribution to be determined by the System, equal to 9.0% of
31    the member's highest annual salary rate that would be used in
32    the  determination  of  the  average  salary  for  retirement
33    annuity purposes if  the  member  retired  immediately  after
34    withdrawal,  for  each year of creditable service established
 
                            -88-     LRB093 05642 EFG 17131 a
 1    under this Section.
 2        If the member receives a lump sum payment for accumulated
 3    vacation, sick leave, and personal leave upon withdrawal from
 4    service, and the net amount of that lump sum  payment  is  at
 5    least  as  great  as  the amount of the contribution required
 6    under this Section, the entire contribution must be  paid  by
 7    the  employee by payroll deduction.  If there is no such lump
 8    sum payment, or if it is less than the contribution  required
 9    under  this Section, the member shall make an initial payment
10    by payroll deduction, equal to the net amount of the lump sum
11    payment for accumulated vacation, sick  leave,  and  personal
12    leave,  and  have  the  remaining  amount  due  treated  as a
13    reduction from the retirement annuity  in  24  equal  monthly
14    installments  beginning  in the month in which the retirement
15    annuity takes effect.  The required contribution may be  paid
16    as a pre-tax deduction from earnings.
17        (d)  In  order  to ensure that the efficient operation of
18    State government  is  not  jeopardized  by  the  simultaneous
19    retirement of large numbers of key personnel, the director or
20    other  head  of  a  department may, for key employees of that
21    department,  extend  the  December  31,  2002  deadline   for
22    terminating  employment  under  this  Article  established in
23    subdivision (a)(4) of this Section to a date not  later  than
24    April  30,  2003  by  so  notifying  the System in writing by
25    December 31, 2002.
26        (e)  A person who has received  any  age  enhancement  or
27    creditable  service  under  this  Section  and  who  reenters
28    contributing  service  under this Article or Article 14 shall
29    thereby forfeit that age enhancement and creditable  service,
30    and  become  entitled  to  a refund of the contributions made
31    pursuant to this Section.
32        (f)  The  System  shall  determine  the  amount  of   the
33    increase  in  unfunded  accrued  liability resulting from the
34    granting of early retirement incentives  under  this  Section
 
                            -89-     LRB093 05642 EFG 17131 a
 1    and  shall report that amount to the Governor and the Pension
 2    Laws Commission on or before November 15, 2003.  The increase
 3    in liability reported under this subsection (f) shall not  be
 4    included   in   the   calculation   of   the  required  State
 5    contribution under Section 16-158.
 6        (g)  The System shall determine the amount of the  annual
 7    State   contribution   necessary   to  amortize  on  a  level
 8    dollar-payment basis, over a  period  of  10  years  at  8.5%
 9    interest,   compounded  annually,  an  amount  equal  to  the
10    increase  in  unfunded  accrued  liability  determined  under
11    subsection (f) minus $1,000,000.  The  System  shall  certify
12    the amount of this annual State contribution to the Governor,
13    the  State  Comptroller,  the  Bureau  of the Budget, and the
14    Pension Laws Commission on or before November 15, 2003.
15        In addition to the contributions otherwise required under
16    this Article, the State shall  appropriate  and  pay  to  the
17    System (1) an amount equal to $1,000,000 in State fiscal year
18    2004 and (2) in each of State fiscal years 2005 through 2013,
19    an amount equal to the annual State contribution certified by
20    the System under this subsection (g).
21        (h)  The  Pension  Laws  Commission  shall  determine and
22    report to the General Assembly, on or before January 1,  2004
23    and  annually  thereafter through the year 2013, its estimate
24    of (1) the annual amount of  payroll  savings  likely  to  be
25    realized  by the State as a result of the early retirement of
26    persons receiving  early  retirement  incentives  under  this
27    Section  and  (2) the net annual savings or cost to the State
28    from the program of early retirement incentives created under
29    this Section.
30        The  System,  the  Department   of   Central   Management
31    Services, the Bureau of the Budget, and all other departments
32    shall  provide  to  the  Commission  any  assistance that the
33    Commission may request with respect to its reports under this
34    Section.  The Commission may require departments  to  provide
 
                            -90-     LRB093 05642 EFG 17131 a
 1    it  with  any  information  that it deems necessary or useful
 2    with respect to its reports  under  this  Section,  including
 3    without  limitation  information about (1) the final earnings
 4    of  former  department  employees  who  elected  to   receive
 5    benefits  under  this  Section,  (2)  the earnings of current
 6    department employees holding the positions vacated by persons
 7    who elected to receive benefits under this Section,  and  (3)
 8    positions  vacated by persons who elected to receive benefits
 9    under this Section that have not yet been refilled.
10        (i)  The changes made to this Section by this  amendatory
11    Act  of the 92nd General Assembly do not apply to persons who
12    retired under this Section on or before May 1, 1992.
13        (j)  A teacher  who,  on  any  day  in  June,  2002,  was
14    employed by a department on a regular and permanent basis for
15    4  or  more  clock  hours  per  day, 4 days per week shall be
16    deemed to have been in payroll status as a full-time  teacher
17    for  the  purposes  of subdivision (a)(1)(i) of this Section,
18    notwithstanding Sections  16-106.1  and  16-106.2.    Such  a
19    teacher  who applied for early retirement benefits under this
20    Section in a timely manner, but was rejected  by  the  System
21    for  failure  to meet the full-time requirement, may re-apply
22    for an early retirement benefit under this Section within the
23    30 days following the effective date of this  amendatory  Act
24    of  the  93rd  General  Assembly.   For  such  a  person, the
25    December 31, 2002 deadline for terminating  employment  under
26    this  Article,  established  in  subdivision  (a)(4)  of this
27    Section, is extended to the end of the school year  in  which
28    the  re-application  is  received  by  the  System,  and  the
29    application  deadline established in subdivision (a)(3) shall
30    be deemed satisfied by the original application.
31    (Source: P.A. 92-566, eff. 6-25-02.)

32        (40 ILCS 5/16-136.4) (from Ch. 108 1/2, par. 16-136.4)
33        Sec. 16-136.4.  Single-sum retirement benefit.
 
                            -91-     LRB093 05642 EFG 17131 a
 1        (a)  A member who has less than  5  years  of  creditable
 2    service  shall  be  entitled, upon written application to the
 3    board, to receive a retirement benefit payable  in  a  single
 4    sum  upon  or  after  the  member's  attainment  of  age  65.
 5    However,  the  benefit  shall not be paid while the member is
 6    employed as a teacher in  the  schools  included  under  this
 7    Article  or  Article  17,  unless  the  System is required by
 8    federal law to make payment due to the member's age.
 9        (b)  The retirement benefit shall consist of a single sum
10    that is the actuarial equivalent of a life annuity consisting
11    of 1.67% of the member's final average salary for  each  year
12    of  creditable service earned before July 1, 1998 and 2.2% of
13    the member's final average salary for each year of creditable
14    service earned after  June  30,  1998.   In  determining  the
15    amount  of  the  benefit,  a fractional year shall be granted
16    proportional credit.
17        For the purposes of this Section,  final  average  salary
18    shall  be  the  average  salary  of  the  member's  highest 4
19    consecutive years of service as determined under rules of the
20    board.  For a member with less than 4  consecutive  years  of
21    service,  final  average  salary  shall be the average salary
22    during  the  member's  entire  period  of  service.   In  the
23    determination of final average salary for members other  than
24    elected  officials  and their appointees when such appointees
25    are allowed by statute, that part of a member's salary  which
26    exceeds  the  member's  annual full-time salary rate with the
27    same employer for the preceding year by more than  20%  shall
28    be  excluded.    The exclusion shall not apply in any year in
29    which the member's creditable earnings are less than  50%  of
30    the  preceding  year's  mean salary for downstate teachers as
31    determined by the survey of school district salaries provided
32    in Section 2-3.103 of the School Code.
33        (c)  The retirement benefit determined under this Section
34    shall be available to all members who render teaching service
 
                            -92-     LRB093 05642 EFG 17131 a
 1    after  July  1,  1947  for  which  member  contributions  are
 2    required.
 3        (d)  Upon acceptance of the retirement  benefit,  all  of
 4    the  member's  accrued  rights  and credits in the System are
 5    forfeited.  Receipt of a single-sum retirement benefit  under
 6    this  Section  does  not make a person an "annuitant" for the
 7    purposes of this Article, nor a "benefit recipient"  for  the
 8    purposes of Sections 16-153.1 through 16-153.4.
 9    (Source: P.A. 91-887, eff. 7-6-00.)

10        (40 ILCS 5/16-149.2) (from Ch. 108 1/2, par. 16-149.2)
11        Sec. 16-149.2.  Disability retirement annuity.
12        (a)  A   member   whose   disability   benefit  has  been
13    terminated under the provisions  of  Section  16-149  may  be
14    retired  on a disability retirement annuity payable effective
15    the  day  following  such  termination  provided  the  member
16    remains disabled under the standard of disability provided in
17    Section 16-149.
18        The disability retirement annuity shall be  payable  upon
19    receipt  of  written  certificates  from  at least 2 licensed
20    physicians   designated   by   the   System   verifying   the
21    continuation  of  the  disability  condition.  A   disability
22    retirement  annuity  shall  not be paid during any period for
23    which the member  receives  benefits  under  Section  16-133,
24    Section 16-149, or Section 16-149.1 or has a right to receive
25    a  salary  as  a teacher, or is employed in any capacity as a
26    teacher by the employers included under this System or in  an
27    equivalent  capacity  in  any other public or private school,
28    college or university.
29        (b)  The disability retirement annuity shall be equal  to
30    the  larger  of:   (1) 35% of the most recent annual contract
31    salary rate or for part-time  and  substitute  members  after
32    June 30, 1990, the most recent annualized salary rate; or (2)
33    if  disability  commences prior to the member's attainment of
 
                            -93-     LRB093 05642 EFG 17131 a
 1    age 55,  the  amount  computed  in  accordance  with  Section
 2    16-133,  provided  the amount computed under paragraph (B) of
 3    Section 16-133 shall be reduced by 1/2 of 1% for  each  month
 4    that  the  member  is  less than age 55; or (3) if disability
 5    commences after the member's attainment of age  55,  and  the
 6    member  is  not  receiving a retirement annuity under Section
 7    16-133,  the  amount  computed  in  accordance  with  Section
 8    16-133.
 9        Prior to July 1, 1990,  if  the  most  recent  period  of
10    service  of  any  member  eligible  to  receive  a disability
11    retirement annuity was rendered on a less than full-time  but
12    not  less  than half-time basis, the amount of the disability
13    retirement annuity payable shall be computed on the basis  of
14    the salary received by such member for the member's last year
15    of  service  on  a full-time basis if such salary was greater
16    than the member's most recent salary.
17        (c)  If an annuitant receiving  a  disability  retirement
18    annuity under this Section is engaged in or able to engage in
19    gainful  employment  paying  more than the difference between
20    the disability retirement annuity and the  salary  rate  upon
21    which  the  disability benefit is based, with no salary to be
22    considered less than the minimum prescribed in  Section  24-8
23    of  the  School Code, the disability retirement annuity shall
24    be reduced to an amount which together with the amount earned
25    by the annuitant, equals  the  salary  rate  upon  which  the
26    disability  benefit  is  based.  However, for the purposes of
27    this subsection (c) only, the  salary  rate  upon  which  the
28    benefit  is  based  shall be deemed to increase by 15% on the
29    tenth anniversary of the commencement of the annuity.
30        Once  each  year  during  the  first  5  years  following
31    retirement on a disability retirement annuity,  and  once  in
32    every  3-year  period  thereafter,  the System may require an
33    annuitant to undergo a medical examination, by a physician or
34    physicians  designated  by  the  System.   If  the  annuitant
 
                            -94-     LRB093 05642 EFG 17131 a
 1    refuses to submit to such medical  examination,  the  annuity
 2    shall  be  discontinued  until  such  time  as  the annuitant
 3    consents to the examination, and if refusal continues for one
 4    year, all the rights to the annuity shall be revoked.
 5        (d)  If  an  annuitant  in  receipt   of   a   disability
 6    retirement  annuity returns to active service as a teacher or
 7    is no longer disabled,  such  annuity  shall  cease  and  the
 8    annuitant  shall  again  become  a  member  of the Retirement
 9    System and, if in active service as  a  teacher,  shall  make
10    regular    contributions.       The   remaining   accumulated
11    contributions  shall   be   transferred   to   the   Members'
12    Contribution   Reserve   from   the  Employer's  Contribution
13    Reserve.  All service for which the annuitant had  credit  on
14    the date of disability shall be properly reestablished.
15        An  annuitant  in  receipt  of  a  disability  retirement
16    annuity  who  returns  to active service as a teacher and who
17    again  becomes  disabled  shall  not   be   entitled   to   a
18    recomputation  of  the disability retirement annuity based on
19    amendments enacted while the annuitant was in receipt of  the
20    annuity  unless  at  least  one year of creditable service is
21    rendered after the latest re-entry into service.
22        (e)  An annuitant in receipt of a  disability  retirement
23    annuity  may,  upon  reaching  retirement age as specified in
24    Section 16-132, apply for a retirement annuity which is to be
25    calculated as specified in Section  16-133.   The  disability
26    retirement annuity shall be discontinued upon commencement of
27    the retirement annuity.
28        (f)  The   board  shall  prescribe  rules  governing  the
29    filing, investigation, control, and supervision of disability
30    retirement  claims.   The  rules   shall   include   specific
31    standards  to  be  used  when  requesting  additional medical
32    examinations, hospital records or other  data  necessary  for
33    determining  the  employment  capacity  and  condition of the
34    annuitant.  Costs incurred by a claimant in  connection  with
 
                            -95-     LRB093 05642 EFG 17131 a
 1    completing  a  claim for disability benefits shall be paid by
 2    the claimant.
 3        The changes to this Section made by this  amendatory  Act
 4    of  1991  shall apply not only to persons who on or after its
 5    effective date are in service as a teacher under the  System,
 6    but  also  to  persons  whose  status as a teacher terminated
 7    prior to that date, whether or not the person is an annuitant
 8    on that date.
 9    (Source: P.A. 86-273; 86-1488; 87-794.)

10        (40 ILCS 5/16-150) (from Ch. 108 1/2, par. 16-150)
11        Sec. 16-150.   Re-entry.   If  an  annuitant  under  this
12    System is again employed as a teacher for an aggregate period
13    exceeding  that  permitted  by  Section  16-118,  his  or her
14    retirement annuity shall  be  terminated  and  the  annuitant
15    shall  thereupon  be  regarded  as  an  active  member.   The
16    annuitant's  remaining  accumulated  contributions  shall  be
17    transferred  to  the  Members'  Contribution Reserve from the
18    Employer's Contribution Reserve.
19        Such annuitant is not entitled to a recomputation of  his
20    or  her  retirement  annuity unless at least one full year of
21    creditable service is rendered after the latest re-entry into
22    service and the annuitant must have rendered at least 3 years
23    of creditable service after last  re-entry  into  service  to
24    qualify  for  a recomputation of the retirement annuity based
25    on amendments  enacted  while  in  receipt  of  a  retirement
26    annuity, except when retirement was due to disability.
27        However,  regardless of age, an annuitant in receipt of a
28    retirement annuity may be given  temporary  employment  by  a
29    school  board  not  exceeding  that  permitted  under Section
30    16-118 and continue to receive the retirement annuity.
31        Unless  retirement  was  necessitated  by  disability,  a
32    retirement shall be considered cancelled and  the  retirement
33    allowance must be repaid in full if the annuitant is employed
 
                            -96-     LRB093 05642 EFG 17131 a
 1    as  a teacher within the school year during which service was
 2    terminated.
 3        An annuitant's retirement which does not include a period
 4    of at least one  full  and  complete  school  year  shall  be
 5    considered  cancelled  and  the  retirement  annuity  must be
 6    repaid in full unless such  retirement  was  necessitated  by
 7    disability.
 8    (Source: P.A. 86-273; 87-794.)

 9        (40 ILCS 5/16-151) (from Ch. 108 1/2, par. 16-151)
10        Sec. 16-151. Refund.  Upon termination of employment as a
11    teacher  for  any  cause  other  than  death or retirement, a
12    member shall be paid the following amount upon demand made at
13    least 4 months after ceasing to teach:
14             (1)  from  the  Benefit   Trust   Reserve   Members'
15        Contribution Reserve, the actual total contributions paid
16        by  or  on  behalf  of  the member for membership service
17        which have not been previously  refunded  and  which  are
18        then  credited  to the member's individual account in the
19        Benefit  Trust  Reserve  Members'  Contribution  Reserve,
20        without interest thereon, and
21             (2)  from  the  Benefit  Trust  Reserve   Employer's
22        Contribution   Reserve,   the  actual  contributions  not
23        previously refunded, paid by or on behalf of  the  member
24        for  prior  service and towards the cost of the automatic
25        annual increase in retirement annuity as  provided  under
26        Section 16-152, without interest thereon.
27        Any  such amounts may be paid to the member either in one
28    sum or,  at  the  election  of  the  board,  in  4  quarterly
29    payments.
30        Contributions   credited  to  a  member  for  periods  of
31    disability as provided in Sections 16-149  and  16-149.1  are
32    not refundable.
33        Upon  acceptance  of  a  refund,  all  accrued rights and
 
                            -97-     LRB093 05642 EFG 17131 a
 1    credits in the System are forfeited  and  may  be  reinstated
 2    only  if the refund is repaid together with interest from the
 3    date of the refund to the date of repayment at the  following
 4    rates  compounded  annually:   for  periods  prior to July 1,
 5    1965, regular interest; for periods from July 1, 1965 to June
 6    30, 1977, 4% per year; for periods on and after July 1, 1977,
 7    regular interest. Repayment shall be permitted upon return to
 8    membership; however, service credit previously forfeited by a
 9    refund and subsequently reinstated may not be used as a basis
10    for  the  payment  of  benefits,  other  than  a  refund   of
11    contributions,  prior  to  the  completion  of  one  year  of
12    creditable   service   following   the  refund,  except  when
13    repayment  is  permitted  under   the   provisions   of   the
14    "Retirement Systems Reciprocal Act" contained in Article 20.
15    (Source: P.A. 90-448, eff. 8-16-97.)

16        (40 ILCS 5/16-182) (from Ch. 108 1/2, par. 16-182)
17        Sec. 16-182.  Members' Contribution Reserve.
18        (a)  On  July  1, 2003, the Members' Contribution Reserve
19    is abolished and the remaining balance shall  be  transferred
20    from  that  Reserve to the Benefit Trust Reserve.  A Members'
21    Contribution Reserve shall be established for the purpose  of
22    accumulating  with  regular  interest  the  contributions  of
23    members made prior to retirement.
24        This Reserve shall be credited with:
25             (1)  The   total   accumulated   contributions   for
26        membership  service,  as  of  the  date  this  reserve is
27        established,  exclusive  of  contributions   for   annual
28        increases in retirement annuity and survivor benefits.
29             (2)  The member contributions received under Section
30        16-133.2.
31             (3)  The  normal  contributions under Section 16-128
32        and Section 16-131.2 together with regular interest.
33             (4)  The total of all normal contributions for  each
 
                            -98-     LRB093 05642 EFG 17131 a
 1        fiscal year as of the end of the fiscal year.
 2             (5)  The  excess of the accumulated contributions of
 3        an annuitant at retirement over  the  retirement  annuity
 4        payments  received,  to  be  computed  upon re-entry into
 5        service after termination  of  a  retirement  annuity  as
 6        provided  in  Section  16-150,  or after termination of a
 7        disability retirement  annuity  as  provided  in  Section
 8        16-149.2.
 9             (6)  Regular    interest    on    the    accumulated
10        contributions  in the members' contribution reserve as of
11        the end of the previous fiscal year, credited to the date
12        of retirement or death for those retiring or dying during
13        the fiscal year, and to the end of the  fiscal  year  for
14        all other members.
15        (b)  This Reserve shall be charged with:
16             (1)  The   accumulated   contributions   of  members
17        retired under the provisions of Sections 16-133, 16-136.4
18        and 16-149.2.
19             (2)  The  accumulated   contributions   of   members
20        granted a refund under the provisions of Section 16-151.
21             (3)  The   accumulated   contributions  of  deceased
22        members upon payment of a refund as provided  in  Section
23        16-138.
24             (4)  The  accumulated  contributions  together  with
25        regular interest as provided in Section 16-131.1.
26        (c)  Upon  the  granting  of  a retirement annuity or the
27    payment of a single-sum retirement  benefit  or  a  death  or
28    refund  benefit,  all  individual  accumulated credits of the
29    member concerned shall be terminated.
30        (d)  Amounts credited to the account of  a  member  under
31    this  Reserve  shall  not  be  used  until  such member dies,
32    retires,  accepts  a  refund,  or  requests  a  transfer   of
33    contributions.
34    (Source: P.A. 87-11.)
 
                            -99-     LRB093 05642 EFG 17131 a
 1        (40 ILCS 5/16-184) (from Ch. 108 1/2, par. 16-184)
 2        Sec. 16-184.  Supplementary Annuity Reserve.
 3        (a)  Except  as  provided in subsection (b), a Reserve to
 4    be known as the Supplementary Annuity Reserve is  established
 5    for  the  purpose  of  crediting  funds received and charging
 6    disbursements made for supplementary annuities under  Section
 7    16-135 and Section 16-149.4.
 8        This Reserve shall be credited with:
 9             (1)  The   total   of   all  contributions  made  by
10        annuitants to qualify for supplementary annuities.
11             (2)  Amounts contributed to the System by the  State
12        of  Illinois that are sufficient to assure payment of the
13        supplementary annuities.
14             (3)  Regular  interest  computed  annually  on   the
15        average balance in this reserve.
16        This  Reserve  shall  be  charged  with  all supplemental
17    annuity payments under Section 16-135 and Section 16-149.4.
18        (b)  On  the  July  1,  2003  next  occurring  after  the
19    effective date of this amendatory Act  of  the  91st  General
20    Assembly,  the  Supplemental Annuity Reserve is abolished and
21    any remaining balance shall be transferred from that  Reserve
22    to the Benefit Trust Reserve Employer's Contribution Reserve.
23    (Source: P.A. 91-887, eff. 7-6-00.)

24        (40 ILCS 5/16-185) (from Ch. 108 1/2, par. 16-185)
25        Sec.   16-185.   Benefit  Trust  Employer's  Contribution
26    Reserve.
27        (a)  On July 1, 2003, the Employer's Contribution Reserve
28    shall be renamed the  Benefit  Trust  Reserve.   The  Benefit
29    Trust  Reserve  shall  serve as a clearing account for income
30    and expenses of the System as well as transfers to  and  from
31    the other reserve accounts established under this Article and
32    adjustments thereto.
33        (b)  This    Reserve   shall   be   credited   with   all
 
                            -100-    LRB093 05642 EFG 17131 a
 1    contributions, investment income, and other  income  received
 2    by the System, except as otherwise required by this Article.:
 3             (1)  All  amounts  contributed  by the State, except
 4        those credited to other reserve accounts as  provided  in
 5        this Article.
 6             (2)  The  total  member  and  employer contributions
 7        except those required by other reserve accounts.
 8             (3)  The total income from invested  assets  of  the
 9        System, and other miscellaneous income.
10             (4)  The   interest   portion   of  the  accumulated
11        contributions of members granted refunds.
12             (5)  Contributions made by annuitants to qualify for
13        automatic  annual  increases  in  annuity,  except  those
14        required by other reserve accounts.
15        (c)  This Reserve shall be charged with all benefits  and
16    refunds  paid and all other expenses of the System, except as
17    otherwise required under this Article.:
18             (1)  All amounts necessary to be transferred to  the
19        Members' Contribution Reserve.
20             (2)  All  retirement  annuity, single-sum retirement
21        benefit  and  disability  retirement  annuity   payments,
22        including automatic annual increases in annuities, except
23        as provided by other reserve accounts.
24             (3)  All   amounts   necessary  to  be  refunded  to
25        withdrawing members except as provided  by  the  Members'
26        Contribution Reserve.
27             (4)  All    benefits    paid   to   temporarily   or
28        accidentally disabled members of  this  System,  and  all
29        amounts credited to the accounts of such disabled members
30        in lieu of contributions.
31             (5)  All amounts payable as death benefits except as
32        provided by the Members' Contribution Reserve.
33             (6)  All  amounts necessary for the payment of costs
34        for the health insurance program as provided  under  this
 
                            -101-    LRB093 05642 EFG 17131 a
 1        Article.
 2             (7)  All  survivor benefit contributions refunded to
 3        an annuitant as provided under Section 16-143.2.
 4             (8)  All amounts paid  in  accordance  with  Section
 5        16-131.1  except as provided by the Members' Contribution
 6        Reserve.
 7             (9)  Interest  to  be  credited  to  other   reserve
 8        accounts as specified in this Article.
 9             (10)  Recognition  of  unrealized gains or losses in
10        market  value,  upon  adoption  of   generally   accepted
11        accounting principles that allow for such recognition.
12    (Source: P.A. 89-235, eff. 8-4-95; 90-448, eff. 8-16-97.)

13        (40 ILCS 5/16-186.3) (from Ch. 108 1/2, par. 16-186.3)
14        Sec. 16-186.3.  Reserve for minimum retirement annuity.
15        (a)  A  Minimum Retirement Annuity Reserve is established
16    for the purpose of  crediting  funds  received  and  charging
17    disbursements  for  minimum retirement annuity payments under
18    Section 16-136.2 and Section 16-136.3.
19        This Reserve shall be credited with:
20             (1)  The  total  of  all   contributions   made   by
21        annuitants to qualify for the minimum retirement annuity.
22             (2)  Amounts  contributed to the System by the State
23        of Illinois that are sufficient to assure payment of  the
24        minimum   retirement   annuity   payments  under  Section
25        16-136.2 and Section 16-136.3.
26             (3)  Regular  interest  computed  annually  on   the
27        average balance in this Reserve.
28        This Reserve shall be charged with all minimum retirement
29    annuity payments under Section 16-136.2 and Section 16-136.3.
30        (b)  After  all  minimum retirement annuity payments have
31    been completed, any remaining funds shall be transferred from
32    this  Reserve  to  the  Benefit  Trust   Reserve   Employer's
33    Contribution Reserve.
 
                            -102-    LRB093 05642 EFG 17131 a
 1    (Source: P.A. 88-593, eff. 8-22-94.)

 2        (40 ILCS 5/17-116.7 new)
 3        Sec. 17-116.7. Purchase of additional service credit.
 4        (a)  This Section applies only to a person who (i) served
 5    as a principal for at least 5 years, (ii) left service due to
 6    a  failure  to  receive  a new contract from the local school
 7    council, (iii) elected the early retirement without  discount
 8    option   under  Section  17-116.1,  (iv)  began  receiving  a
 9    retirement pension before 1992, and  (v)  has  more  than  30
10    years of service credit.
11        (b)  An eligible person may apply in writing to the Board
12    to  establish  an additional 5 years of creditable service in
13    the Fund.  The application must  be  received  by  the  Board
14    within  90 days following the effective date of this Section,
15    and must be accompanied by payment of the  amount  determined
16    under subsection (c).
17        (c)  For  each  year  of  creditable  service established
18    under this Section, the applicant must  pay  to  the  Fund  a
19    contribution  consisting  of  4% of the highest annual salary
20    rate that was used  in  the  determination  of  the  person's
21    retirement  pension.  The amount of the employee contribution
22    already paid by the person under Section  17-116.1  shall  be
23    credited  against  the total contribution required under this
24    subsection.
25        (d)  A person who has purchased  any  creditable  service
26    under this Section shall have his or her pension recalculated
27    to reflect the additional service.  The resulting increase in
28    pension  shall  begin  to accrue on the first pension payment
29    date following receipt of the required  contribution  by  the
30    Fund.
31        (e)  A  person  who  has purchased any creditable service
32    under  this  Section  and  whose  pension  is  suspended   or
33    cancelled  under  Section  17-149  or  17-150  shall  thereby
 
                            -103-    LRB093 05642 EFG 17131 a
 1    forfeit   that   creditable   service.    The  forfeiture  of
 2    creditable service under this subsection  shall  not  entitle
 3    the  person  to  a refund of the contribution paid under this
 4    Section.
 5        (f)  A person who received any early retirement incentive
 6    under Section 17-116.3, 17-116.4, 17-116.5, or  17-116.6  may
 7    not   purchase   additional  creditable  service  under  this
 8    Section.

 9        (40 ILCS 5/17-121.1 new)
10        Sec. 17-121.1. Domestic partner eligibility.
11        (a)  Beginning July 1, 2003,  an  unmarried  teacher  may
12    designate  a domestic partner by filing a written designation
13    with the Fund in the manner prescribed by the Fund.  The Fund
14    may require reasonable evidence that  the  person  designated
15    meets the qualifications set forth in subsection (c).  Such a
16    designation  is revocable at any time, but may not be made or
17    changed more than once in any 24-month period.  The  marriage
18    of  a  teacher  automatically  revokes  any  designation of a
19    domestic partner previously made by that teacher.
20        (b)  The designated domestic partner of a  teacher  shall
21    be eligible to receive survivor and death benefits under this
22    Article in the same manner and subject to the same conditions
23    as  a  surviving  spouse.   For  the  purposes of determining
24    eligibility for those benefits, the date of designation of  a
25    domestic  partner  shall be deemed the equivalent of the date
26    of marriage, and the revocation or change  of  a  designation
27    shall   be  deemed  the  equivalent  of  termination  of  the
28    marriage.  References in this Article  and  other  applicable
29    Articles  of  this Code to a surviving spouse shall be deemed
30    to include a surviving designated domestic partner.
31        (c)  "Domestic partner" means an individual of  the  same
32    gender  as  an unmarried teacher who (1) is involved with the
33    teacher in a long-term relationship of  indefinite  duration;
 
                            -104-    LRB093 05642 EFG 17131 a
 1    (2) has resided together with the teacher at the same address
 2    for  at least 12 months; (3) is not related to the teacher by
 3    blood to a degree of  closeness  that  would  prohibit  legal
 4    marriage  in  the  state in which they legally reside; (4) is
 5    not married to any other person; and  (5)  has  an  exclusive
 6    mutual  commitment  to  the teacher in which they agree to be
 7    jointly responsible for each other's common  welfare  and  to
 8    share financial obligations.

 9        (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
10        Sec. 17-122. Survivor's and children's pensions - Amount.
11    Upon  the death of a teacher who has completed at least 1 1/2
12    years of contributing service with either this  Fund  or  the
13    State   Universities   Retirement  System  or  the  Teachers'
14    Retirement System of the  State  of  Illinois,  provided  his
15    death  occurred  while  (a)  in active service covered by the
16    Fund or during his first 18 months of  continuous  employment
17    without  a  break  in  service  under any other participating
18    system  as  defined  in  the  Illinois   Retirement   Systems
19    Reciprocal  Act  except  the  State  Universities  Retirement
20    System  and  the  Teachers' Retirement System of the State of
21    Illinois, (b) on a creditable leave  of  absence,  (c)  on  a
22    noncreditable  leave  of absence of no more than one year, or
23    (d) a pension was deferred or pending  provided  the  teacher
24    had  at  least  10 years of validated service credit, or upon
25    the  death  of  a  pensioner  otherwise  qualified  for  such
26    benefit, the surviving spouse and unmarried minor children of
27    the deceased teacher  under  age  18  shall  be  entitled  to
28    pensions,  under  the  conditions  stated  hereinafter.  Such
29    survivor's and children's pensions  shall  be  based  on  the
30    average  of  the 4 highest consecutive years of salary in the
31    last 10 years of service or on the average salary  for  total
32    service,  if  total  service  has  been  less  than  4 years,
33    according to the following percentages:
 
                            -105-    LRB093 05642 EFG 17131 a
 1        30% of average salary or 50% of  the  retirement  pension
 2    earned  by  the  teacher, whichever is larger, subject to the
 3    prescribed maximum monthly payment, for  a  surviving  spouse
 4    alone on attainment of age 50;
 5        60%   of  average  salary  for  a  surviving  spouse  and
 6    eligible minor children of the deceased teacher.
 7        If no eligible spouse survives, or the  surviving  spouse
 8    remarries,  or  the  parent  of  the children of the deceased
 9    member is otherwise ineligible for a  survivor's  pension,  a
10    children's  pension  for eligible minor children under age 18
11    shall be paid to their parent or  legal  guardian  for  their
12    benefit according to the following percentages:
13        30% of average salary for one child;
14        60% of average salary for 2 or more children.
15        On  January  1,  1981,  any  survivor  or  child  who was
16    receiving a survivor's or children's  pension  on  or  before
17    January  1,  1971,  shall  have  his survivor's or children's
18    pension then being paid increased by 1% for  each  full  year
19    which has elapsed from the date the pension began. On January
20    1,  1982,  any  survivor  or  child whose pension began after
21    January 1, 1971, but before January 1, 1981, shall  have  his
22    survivor's or children's pension then being paid increased 1%
23    for  each  full  year  which  has  elapsed  from the date the
24    pension began. On January 1,  1987,  any  survivor  or  child
25    whose  pension began on or before January 1, 1977, shall have
26    the monthly survivor's or children's pension increased by  $1
27    for each full year which has elapsed since the pension began.
28        Beginning   January   1,   1990,   every  survivor's  and
29    children's pension shall be increased (1) on each  January  1
30    occurring  on or after the commencement of the pension if the
31    deceased teacher died while receiving a  retirement  pension,
32    or  (2)  in  other  cases,  on each January 1 occurring on or
33    after the  first  anniversary  of  the  commencement  of  the
34    pension,  by  an  amount equal to 3% of the current amount of
 
                            -106-    LRB093 05642 EFG 17131 a
 1    the pension, including all increases previously granted under
 2    this Article, notwithstanding Section 17-157.  Such increases
 3    shall apply without regard to whether  the  deceased  teacher
 4    was  in  service  on  or  after  the  effective  date of this
 5    amendatory Act of 1991, but shall not accrue for  any  period
 6    prior to January 1, 1990.
 7        Subject  to  the  minimum  established below, the maximum
 8    amount of pension for a surviving spouse alone or  one  minor
 9    child  shall  be  $400  per  month,  and the maximum combined
10    pensions for a surviving spouse and children of the  deceased
11    teacher  shall  be  $600  per month, with individual pensions
12    adjusted for all beneficiaries pro rata to conform with  this
13    limitation.    If   proration   is  unnecessary  the  minimum
14    survivor's and children's pensions shall be  $40  per  month.
15    The  minimum  total survivor's and children's pension payable
16    upon the death of a contributor  or  annuitant  which  occurs
17    after   December  31,  1986,  shall  be  50%  of  the  earned
18    retirement  pension  of  such   contributor   or   annuitant,
19    calculated  without  early retirement discount in the case of
20    death in service.  Beginning January  1,  2004,  the  minimum
21    total   survivor's  pension  payable  upon  the  death  of  a
22    contributor or annuitant that occurred before January 1, 1987
23    shall  be  50%  of  the  earned  retirement  pension  of  the
24    contributor or annuitant, calculated without early retirement
25    discount in the case of death in service, and notwithstanding
26    Section 17-157.
27        On death  after  retirement,  the  total  survivor's  and
28    children's  pensions  shall not exceed the monthly retirement
29    or  disability  pension  paid  to  the   deceased   retirant.
30    Survivor's  and children's benefits described in this Section
31    shall apply to all service and disability pensioners eligible
32    for a pension as of July 1, 1981.
33    (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
 
                            -107-    LRB093 05642 EFG 17131 a
 1        Section 90.  The State Mandates Act is amended by  adding
 2    Section 8.27 as follows:

 3        (30 ILCS 805/8.27 new)
 4        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
 5    and 8 of this Act, no reimbursement by the State is  required
 6    for  the  implementation  of  any  mandate  created  by  this
 7    amendatory Act of the 93rd General Assembly.

 8        Section  99.  Effective date.  This Act takes effect upon
 9    becoming law.".