093_HB2435

 
                                     LRB093 06294 EFG 06412 b

 1        AN ACT in relation to public employee benefits.

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

 4        Section  5.  The  Illinois  Pension  Code  is  amended by
 5    changing Sections 13-301,  13-302,  13-306,  13-314,  13-402,
 6    13-502, 13-601, and 13-603 as follows:

 7        (40 ILCS 5/13-301) (from Ch. 108 1/2, par. 13-301)
 8        Sec.   13-301.  Retirement   annuity;  eligibility.   Any
 9    employee who withdraws from service and  meets  the  age  and
10    service  requirements  and  other  conditions  set  forth  in
11    subsections  (a),  (b),  (c)  or  (d)  hereof  is entitled to
12    receive a retirement annuity.
13        (a)  Withdrawal on or after age 60.  Any  employee,  upon
14    withdrawal  from service on or after attainment of age 60 and
15    having at  least  5  years  of  service,  is  entitled  to  a
16    retirement annuity.
17        (b)  Withdrawal   on   or  after  attainment  of  minimum
18    retirement qualifications and prior to age 60.
19             (1)  Any employee, upon withdrawal from  service  on
20        or  after  attainment  of  age 55 (age 50 if the employee
21        first entered service before June 13, 1997) but prior  to
22        age  60  and  having  at  least  10  years of service, is
23        entitled to a  retirement  annuity  as  of  the  date  of
24        withdrawal or, at the option of the employee, at any time
25        thereafter.
26             (2)  Any   employee   who   withdraws  on  or  after
27        attainment of age  55  (age  50  if  the  employee  first
28        entered service before June 13, 1997) and prior to age 60
29        having at least 5 years but less than 10 years of service
30        is  entitled  to  a retirement annuity upon attainment of
31        age  62,  subject  to  the  other  requirements  of  this
 
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 1        Article.
 2             (3)  Any employee who withdraws from service  on  or
 3        after  attainment  of  age  50 but prior to age 60 and is
 4        eligible for early retirement without discount under  the
 5        Rule  of  80  as  provided  in  subsection (c) of Section
 6        13-302 is entitled to a retirement annuity at the time of
 7        withdrawal.
 8        (c)  Withdrawal prior to  minimum  retirement  age.   Any
 9    employee,  upon  withdrawal from service prior to age 55 (age
10    50 if the employee first  entered  service  before  June  13,
11    1997)  and  having at least 10 years of service, shall become
12    entitled to a retirement annuity upon attainment  of  age  55
13    (age 50 if the employee first entered service before June 13,
14    1997)  or,  at  the  option  of  the  employee,  at  any time
15    thereafter,  subject  to  the  other  requirements  of   this
16    Article.
17        (d)  Withdrawal  while  disabled.  Any employee having at
18    least 5 years of service who has received ordinary disability
19    benefits on or after January 1, 1986 for the  maximum  period
20    of  time  hereinafter  prescribed,  and  who  continues to be
21    disabled and withdraws from service, shall be entitled  to  a
22    retirement  annuity.   In  the case of an employee who enters
23    service after the effective date of this  amendatory  Act  of
24    the 93rd General Assembly, the required 5 years of service is
25    exclusive of service credit described in Section 13-313.  The
26    age and service conditions as to eligibility for such annuity
27    shall  be waived as to the employee, but the early retirement
28    discount  under  Section  13-302(b)  shall  apply.   If   the
29    employee  is  under  age  55  on  the date of withdrawal, the
30    retirement annuity shall be computed  by  assuming  that  the
31    employee  is  then  age  55 and then reduced to its actuarial
32    equivalent at his attained age  on  that  date  according  to
33    applicable   mortality   tables   and  interest  rates.   The
34    retirement annuity shall not be payable for any period  prior
 
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 1    to  the  employee's  attainment  of  age  55 during which the
 2    employee is able to return to gainful employment.   Upon  the
 3    employee's  death while in receipt of a retirement annuity, a
 4    surviving spouse or  minor  children  shall  be  entitled  to
 5    receive  a  surviving  spouse's  annuity  or  child's annuity
 6    subject to the conditions hereinafter prescribed in  Sections
 7    13-305 through 13-308.
 8    (Source: P.A. 92-599, eff. 6-28-02.)

 9        (40 ILCS 5/13-302) (from Ch. 108 1/2, par. 13-302)
10        Sec. 13-302.  Computation of retirement annuity.
11        (a)  Computation  of  annuity.  An employee who withdraws
12    from service on or after July 1, 1989 and who has met the age
13    and service requirements and other conditions for eligibility
14    set forth in Section 13-301 of this Article  is  entitled  to
15    receive  a  retirement  annuity  for  life  equal  to 2.2% of
16    average final salary for  each  of  the  first  20  years  of
17    service,  and  2.4%  of average final salary for each year of
18    service in excess of 20.  The retirement  annuity  shall  not
19    exceed 80% of average final salary.
20        (b)  Early  retirement  discount.  If an employee retires
21    prior to attainment of age 60 with  less  than  30  years  of
22    service,  the  annuity computed above shall be reduced by 1/2
23    of 1% for each full month between the date the annuity begins
24    and attainment of age 60, or each full  month  by  which  the
25    employee's  service is less than 30 years, whichever is less.
26    However, where the employee first enters service  after  June
27    13,  1997  and  does  not  have  at least 10 years of service
28    exclusive of credit under Article 20,  the  annuity  computed
29    above  shall  be  reduced  by  1/2  of 1% for each full month
30    between the date the annuity begins and attainment of age 60.
31        (c)  Rule of 80 - Early retirement without discount.  For
32    an employee who retires on or after January 1, 2003 but on or
33    before  December  31, 2007, if the employee is eligible for a
 
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 1    retirement annuity under Section 13-301 and has at  least  10
 2    years  of service exclusive of credit under Article 20 and if
 3    at the date of withdrawal the employee's age  when  added  to
 4    the  number  of years of his or her creditable service equals
 5    at least 80, the early retirement discount in subsection  (b)
 6    of  this Section does not apply. For purposes of this Rule of
 7    80, portions of years shall be considered in whole months.
 8        An  employee  who  has  terminated  employment  with  the
 9    employer under this Article prior to the  effective  date  of
10    this   amendatory  Act  of  the  92nd  General  Assembly  and
11    subsequently re-enters service must remain  in  service  with
12    the  employer  under  this Article for at least 2 years after
13    re-entry during the period beginning on January 1,  2003  and
14    ending   on  December  31,  2007  to  be  entitled  to  early
15    retirement without discount under this subsection (c).
16        In the case of an employee who retires under the terms of
17    Article 20, eligibility for early retirement without discount
18    under this subsection (c) shall be based upon the  employee's
19    age  and  service  credit  at the time of withdrawal from the
20    final fund.
21        (c-1)  Early  retirement  without  discount;   retirement
22    after  June 29, 1997 and before January 1, 2003.  An employee
23    who (i) has attained age 55 (age 50  if  the  employee  first
24    entered  service  before June 13, 1997), (ii) has at least 10
25    years of service exclusive of credit under Article 20,  (iii)
26    retires  after  June 29, 1997 and before January 1, 2003, and
27    (iv) retires within 6  months  of  the  last  day  for  which
28    retirement contributions were required, may elect at the time
29    of  application  to  make a one-time employee contribution to
30    the Fund and thereby avoid  the  early  retirement  reduction
31    specified  in  subsection  (b).  The exercise of the election
32    shall  also  obligate  the  employer  to  make   a   one-time
33    nonrefundable contribution to the Fund.
34        The one-time employee and employer contributions shall be
 
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 1    a  percentage  of  the  retiring employee's highest full-time
 2    annual salary, calculated  as  the  total  amount  of  salary
 3    included in the highest 26 consecutive pay periods as used in
 4    the  average  final  salary  calculation,  and  based  on the
 5    employee's age and service at retirement.  The employee  rate
 6    shall  be  7%  multiplied  by  the  lesser of the following 2
 7    numbers: (1) the number of years, or  portion  thereof,  that
 8    the employee is less than age 60; or (2) the number of years,
 9    or  portion thereof, that the employee's service is less than
10    30 years.  The employer contribution shall be at the rate  of
11    20%  for  each year, or portion thereof, that the participant
12    is less than age 60.
13        Upon  receipt  of  the  application,  the   Board   shall
14    determine    the    corresponding   employee   and   employer
15    contributions.  The annuity shall not be payable  under  this
16    subsection  until  both  the required contributions have been
17    received by the Fund.  However, the  date  the  contributions
18    are  received  shall  not  be  considered  in determining the
19    effective date of retirement.
20        The number of employees who may retire under this Section
21    in any year may be limited at the option of the District to a
22    specified percentage of those eligible, not lower  than  30%,
23    with  the  right  to  participate to be allocated among those
24    applying on the basis of seniority  in  the  service  of  the
25    employer.
26        An   employee   who   has   terminated   employment   and
27    subsequently re-enters service shall not be entitled to early
28    retirement  without discount under this subsection unless the
29    employee continues in service for  at  least  4  years  after
30    re-entry.
31        (d)  Annual  increase.  Except for employees retiring and
32    receiving a term annuity, an employee who retires on or after
33    July 1, 1985 but before July 12, 2001, shall, upon the  first
34    payment  date  following the first anniversary of the date of
 
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 1    retirement, have the monthly annuity increased by 3%  of  the
 2    amount   of   the  monthly  annuity  fixed  at  the  date  of
 3    retirement. Except for employees  retiring  and  receiving  a
 4    term  annuity,  an  employee who retires on or after July 12,
 5    2001 shall, on the first day of the month in which the  first
 6    anniversary  of  the  date  of  retirement  occurs,  have the
 7    monthly annuity increased by 3% of the amount of the  monthly
 8    annuity  fixed at the date of retirement. The monthly annuity
 9    shall be increased by an additional 3% on the same date  each
10    year  thereafter.   Beginning  January  1,  1993,  all annual
11    increases payable under this subsection (or  any  predecessor
12    provision,  regardless  of  the  date of retirement) shall be
13    calculated at the rate of 3% of the monthly  annuity  payable
14    at   the  time  of  the  increase,  including  any  increases
15    previously granted under this Article.
16        Any employee who (i) retired before July 1, 1985 with  at
17    least  10  years  of  creditable service, (ii) is receiving a
18    retirement annuity under this  Article,  other  than  a  term
19    annuity, and (iii) has not received any annual increase under
20    this  subsection,  shall begin receiving the annual increases
21    provided under this subsection  (d)  beginning  on  the  next
22    annuity payment date following June 13, 1997.
23        (e)  Minimum  retirement  annuity.   Beginning January 1,
24    1993, the minimum monthly retirement annuity  shall  be  $500
25    for  any  annuitant having at least 10 years of service under
26    this Article, other than a term annuitant or an annuitant who
27    began receiving the annuity before  attaining  age  60.   Any
28    such  annuitant  who  is  receiving a monthly annuity of less
29    than $500 shall have the annuity increased to  $500  on  that
30    date.
31        Beginning January 1, 1993, the minimum monthly retirement
32    annuity shall be $250 for any annuitant (other than a term or
33    reciprocal  annuitant or an annuitant under subsection (d) of
34    Section 13-301) having less than 10 years  of  service  under
 
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 1    this  Article,  and  for  any  annuitant  (other  than a term
 2    annuitant) having at least 10 years  of  service  under  this
 3    Article  who began receiving the annuity before attaining age
 4    60.  Any such annuitant who is receiving a monthly annuity of
 5    less than $250 shall have the annuity increased  to  $250  on
 6    that date.
 7        Beginning  August  1,  2001 on the first day of the month
 8    following the month in which this amendatory Act of the  92nd
 9    General  Assembly takes effect (and without regard to whether
10    the annuitant was in  service  on  or  after  that  effective
11    date),   the  minimum  monthly  retirement  annuity  for  any
12    annuitant having at least 10 years of service, other than  an
13    annuitant  whose  annuity  is  subject to an early retirement
14    discount, shall be $500 plus $25 for each year of service  in
15    excess  of 10, not to exceed $750 for an annuitant with 20 or
16    more years of service. In the case of a  reciprocal  annuity,
17    this  minimum  shall apply only if the annuitant has at least
18    10 years of service under this Article, and the amount of the
19    minimum annuity shall be  reduced  by  the  sum  of  all  the
20    reciprocal  annuities  payable  to  the  annuitant  by  other
21    participating systems under Article 20 of this Code.
22        Notwithstanding  any  other provision of this subsection,
23    beginning on the first annuity payment  date  following  July
24    12, 2001, an employee who retired before August 23, 1989 with
25    at  least  10  years of service under this Article but before
26    attaining  age  60  (regardless  of  whether  the  retirement
27    annuity was subject to an early retirement discount) shall be
28    entitled to the same minimum monthly retirement annuity under
29    this subsection as an employee who retired with at  least  10
30    years  of  service under this Article and after attaining age
31    60.
32        Notwithstanding any other provision of  this  subsection,
33    beginning  on  the first day of the month following the month
34    in which this amendatory Act of  the  93rd  General  Assembly
 
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 1    takes effect (and without regard to whether the annuitant was
 2    in  service on or after that effective date), an employee who
 3    retired on or after August 23, 1989 with at least 10 years of
 4    service under  this  Article  but  before  attaining  age  60
 5    (regardless  of whether the retirement annuity was subject to
 6    an early retirement discount), shall be entitled to the  same
 7    minimum  monthly  retirement annuity under this subsection as
 8    an employee who retired with at least  10  years  of  service
 9    under this Article and after attaining age 60.
10    (Source: P.A. 92-53, eff. 7-12-01; 92-599, eff. 6-28-02.)

11        (40 ILCS 5/13-306) (from Ch. 108 1/2, par. 13-306)
12        Sec. 13-306.  Computation of surviving spouse's annuity.
13        (a)  Computation  of the annuity.  The surviving spouse's
14    annuity shall be equal  to  60%  of  the  retirement  annuity
15    earned  and  accrued  to the credit of the deceased employee,
16    whether death occurs while in service  or  after  withdrawal,
17    plus  1%  for each year of total service of the employee to a
18    maximum of 85%; provided, however,  that  if  the  employee's
19    death  arises  out  of  and  in  the course of the employee's
20    service to the employer and is compensable under  either  the
21    Illinois  Workers'  Compensation  Act  or  Illinois  Workers'
22    Occupational  Diseases Act, the surviving spouse's annuity is
23    payable regardless of the employee's length  of  service  and
24    shall  be  not  less than 50% of the employee's salary at the
25    date of death.
26        For any death in service the  early  retirement  discount
27    required  under  Section  13-302(b)  shall  not be applied in
28    computing the retirement annuity  upon  which  is  based  the
29    surviving spouse's annuity.
30        (b)  Reciprocal  service.   For any employee or annuitant
31    who retires on or after July 1, 1985 and whose  death  occurs
32    after  January  1,  1991, having at least 15 years of service
33    with the employer under this Article, and who was eligible at
 
                            -9-      LRB093 06294 EFG 06412 b
 1    the time of death or elected at the  time  of  retirement  to
 2    have  his or her retirement annuity calculated as provided in
 3    Section 20-131 of this Code,  the  surviving  spouse  benefit
 4    shall be calculated as of the date of the employee's death as
 5    indicated in subsection (a) as a percentage of the employee's
 6    total  benefit  as if all service had been with the employer.
 7    That benefit shall then be reduced by the amounts payable  by
 8    each  of the reciprocal funds as of the date of death so that
 9    the total surviving spouse benefit at that date will be equal
10    to the benefit which would have been payable had all  service
11    been with the employer under this Article.
12        (c)  Discount  for  age  differential.  The annuity for a
13    surviving spouse shall be discounted by 0.25% for  each  full
14    month  that the spouse is younger than the employee as of the
15    date of withdrawal from service or  death  in  service  to  a
16    maximum  discount  of  60% of the surviving spouse annuity as
17    calculated under  subsections  (a),  (b),  and  (e)  of  this
18    Section.   The discount shall be reduced by 10% for each full
19    year the marriage has been in continuous  effect  as  of  the
20    date  of  withdrawal  or death in service.  There shall be no
21    discount if the marriage has been in continuous effect for 10
22    full years or more at the time  of  withdrawal  or  death  in
23    service.
24        (d)  Annual  increase.  Effective August 23, 1989, on the
25    first day of each calendar month in  which  there  occurs  an
26    anniversary  of  the employee's date of retirement or date of
27    death,  whichever  occurred  first,  the  surviving  spouse's
28    annuity, other than a  term  annuity  under  Section  13-307,
29    shall  be increased by an amount equal to 3% of the amount of
30    the annuity.  Beginning January 1, 1993, all annual increases
31    payable under this subsection (or any  predecessor  provision
32    of this Article) shall be calculated at the rate of 3% of the
33    monthly   annuity  payable  at  the  time  of  the  increase,
34    including  any  increases  previously  granted   under   this
 
                            -10-     LRB093 06294 EFG 06412 b
 1    Article.
 2        Beginning  January  1,  1993, surviving spouse annuitants
 3    whose deceased spouse died, retired or withdrew from  service
 4    before  August  23,  1989  with  at least 10 years of service
 5    under this Article shall be eligible for the annual increases
 6    provided under this subsection.
 7        (e)  Minimum surviving spouse's annuity.
 8             (1)  Beginning January 1, 1993, the minimum  monthly
 9        surviving   spouse's   annuity  shall  be  $500  for  any
10        annuitant whose deceased spouse had at least 10 years  of
11        service under this Article, other than a surviving spouse
12        who  is  a  term annuitant or whose deceased spouse began
13        receiving a retirement annuity under this Article  before
14        attainment   of   age  60.   Any  such  surviving  spouse
15        annuitant who is receiving a monthly annuity of less than
16        $500 shall have the annuity increased  to  $500  on  that
17        date.
18             Beginning  January  1,  1993,  the  minimum  monthly
19        surviving   spouse's   annuity  shall  be  $250  for  any
20        annuitant (other than a term or reciprocal  annuitant  or
21        an  annuitant  survivor  under  subsection (d) of Section
22        13-301) whose deceased spouse had less than 10  years  of
23        service  under this Article, and for any annuitant (other
24        than a term annuitant) whose deceased spouse had at least
25        10  years  of  service  under  this  Article  and   began
26        receiving  a retirement annuity under this Article before
27        attainment  of  age  60.   Any  such   surviving   spouse
28        annuitant who is receiving a monthly annuity of less than
29        $250  shall  have  the  annuity increased to $250 on that
30        date.
31             (2)  Beginning August 1, 2001 on the  first  day  of
32        the  month  following  the month in which this amendatory
33        Act of  the  92nd  General  Assembly  takes  effect  (and
34        without  regard  to  whether  the  deceased spouse was in
 
                            -11-     LRB093 06294 EFG 06412 b
 1        service on or after that  effective  date),  the  minimum
 2        monthly  surviving  spouse's  annuity  for  any annuitant
 3        whose deceased spouse had at least 10  years  of  service
 4        shall be the greater of the following:
 5                  (A)  An amount equal to $500, plus $25 for each
 6             year  of  the deceased spouse's service in excess of
 7             10, not  to  exceed  $750  for  an  annuitant  whose
 8             deceased  spouse  had  20  or more years of service.
 9             This  subdivision  (A)  is  not  applicable  if  the
10             deceased spouse received a retirement  annuity  that
11             was subject to an early retirement discount.
12                  (B)  An   amount   equal  to  (i)  50%  of  the
13             retirement annuity earned and accrued to the  credit
14             of  the  deceased  spouse at the time of death, plus
15             (ii) the amount of any annual  increases  applicable
16             to  the  surviving  spouse's  annuity (including the
17             amount of any reversionary annuity) under subsection
18             (d) before July 12, 2001 the effective date of  this
19             amendatory  Act of the 92nd General Assembly. In any
20             case in which a refund of excess  contributions  for
21             the  surviving  spouse  annuity has been paid by the
22             Fund and the surviving spouse annuity  is  increased
23             due  to the application of this subdivision (B), the
24             amount of that refund shall be recovered by the Fund
25             as an offset against the amount of the  increase  in
26             annuity   arising   from  the  application  of  this
27             subdivision (B).
28                  In  the  case  of  a  reciprocal  annuity,  the
29             minimum annuity calculated  under  this  subdivision
30             (e)(2)  shall  apply  only if the deceased spouse of
31             the annuitant had at least 10 years of service under
32             this Article, and the amount of the minimum  annuity
33             shall  be  reduced  by the sum of all the reciprocal
34             annuities  payable  to  the   annuitant   by   other
 
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 1             participating systems under Article 20 of this Code.
 2                  The   minimum  annuity  calculated  under  this
 3             subdivision (e)(2) is in addition to the  amount  of
 4             any reversionary annuity that may be payable.
 5             (3)  Beginning  August  1,  2001 on the first day of
 6        the month following the month in  which  this  amendatory
 7        Act  of  the  92nd  General  Assembly  takes  effect (and
 8        without regard to whether  the  deceased  spouse  was  in
 9        service  on  or after that effective date), any surviving
10        spouse who is receiving  a  term  annuity  under  Section
11        13-307  or  any predecessor provision of this Article may
12        have that term annuity recalculated and  converted  to  a
13        minimum  surviving  spouse  annuity under this subsection
14        (e).
15             (4)  Notwithstanding any  other  provision  of  this
16        subsection, beginning August 1, 2001 on the first annuity
17        payment   date  following  the  effective  date  of  this
18        amendatory Act of the 92nd General Assembly, an annuitant
19        whose deceased spouse retired before August 23, 1989 with
20        at least 10 years  of  service  under  this  Article  but
21        before  attaining  age  60  (regardless  of  whether  the
22        retirement  annuity  was  subject  to an early retirement
23        discount) shall be entitled to the same  minimum  monthly
24        surviving  spouse's  annuity  under this subsection as an
25        annuitant whose deceased spouse retired with at least  10
26        years  of  service under this Article and after attaining
27        age 60.  Further notwithstanding any other  provision  of
28        this  subsection, beginning on the first day of the month
29        following the month in which this amendatory Act  of  the
30        93rd  General  Assembly  takes effect, an annuitant whose
31        deceased spouse retired on or after August 23, 1989  with
32        at  least  10  years  of  service  under this Article but
33        before  attaining  age  60  (regardless  of  whether  the
34        retirement annuity was subject  to  an  early  retirement
 
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 1        discount)  shall  be entitled to the same minimum monthly
 2        surviving spouse's annuity under this  subsection  as  an
 3        annuitant  whose deceased spouse retired with at least 10
 4        years of service under this Article and  after  attaining
 5        age 60.
 6             (5)  The   minimum   annuity   provided  under  this
 7        subsection (e) shall  be  subject  to  the  age  discount
 8        provided under subsection (c) of this Section.
 9    (Source: P.A. 92-53, eff. 7-12-01.)

10        (40 ILCS 5/13-314) (from Ch. 108 1/2, par. 13-314)
11        Sec.    13-314.  Alternative    provisions    for   Water
12    Reclamation District commissioners.
13        (a)  Transfer of credits.  Any Water Reclamation District
14    commissioner elected by  vote  of  the  people  and  who  has
15    elected to participate in this Fund may transfer to this Fund
16    credits  and  creditable  service accumulated under any other
17    pension fund or retirement system established under  Articles
18    2  through  18  of this Code, upon payment to the Fund of (1)
19    the amount by which the employer and  employee  contributions
20    that  would have been required if he had participated in this
21    Fund during the period for which credit is being transferred,
22    plus interest, exceeds the amounts actually transferred  from
23    such  other  fund  or  system to this Fund, plus (2) interest
24    thereon at 6% per year compounded annually from the  date  of
25    transfer to the date of payment.
26        (b)  Alternative  annuity.   Any participant commissioner
27    may elect to establish alternative credits for an alternative
28    annuity by electing in writing to  make  additional  optional
29    contributions  in accordance with this Section and procedures
30    established by the Board.  Unless and until such time as  the
31    U.S. Internal Revenue Service or the federal courts provide a
32    favorable  ruling  as  described in Section 13-502(f), a such
33    commissioner may discontinue making the  additional  optional
 
                            -14-     LRB093 06294 EFG 06412 b
 1    contributions  by notifying the Fund in writing in accordance
 2    with this Section and procedures established by the Board.
 3        Additional optional  contributions  for  the  alternative
 4    annuity shall be as follows:
 5             (1)  For  service  after  the  option is elected, an
 6        additional  contribution  of  3%  of  salary   shall   be
 7        contributed  to  the Fund on the same basis and under the
 8        same conditions as contributions required  under  Section
 9        13-502.
10             (2)  For   contributions   on   past   service,  the
11        additional contribution shall be 3% of the salary for the
12        applicable period of service, plus interest at the annual
13        rate from time  to  time  as  determined  by  the  Board,
14        compounded  annually from the date of service to the date
15        of payment.  Contributions for service before the  option
16        is  elected may be made in a lump sum payment to the Fund
17        or by contributing to the Fund  on  the  same  basis  and
18        under the same conditions as contributions required under
19        Section  13-502.    All payments for past service must be
20        paid in full  before  credit  is  given.   No  additional
21        optional  contributions  may  be  made  for any period of
22        service for which credit has been previously forfeited by
23        acceptance of a refund, unless the refund  is  repaid  in
24        full  with  interest  at  the  rate  specified in Section
25        13-603, from the date of refund to the date of repayment.
26        In lieu of the retirement annuity otherwise payable under
27    this Article, any commissioner who has elected to participate
28    in the Fund and make  additional  optional  contributions  in
29    accordance with this Section, has attained age 55, and has at
30    least  6  years  of  service  credit,  may  elect to have the
31    retirement  annuity  computed   as   follows:   3%   of   the
32    participant's average final salary as a commissioner for each
33    of  the  first  8  years  of  service credit, plus 4% of such
34    salary for each of the next 4 years of service  credit,  plus
 
                            -15-     LRB093 06294 EFG 06412 b
 1    5%  of  such salary for each year of service credit in excess
 2    of 12 years, subject to a maximum of 80% of such salary.   To
 3    the  extent  such  commissioner  has made additional optional
 4    contributions with respect to only  a  portion  of  years  of
 5    service   credit,   the  retirement  annuity  will  first  be
 6    determined in accordance with this Section to the extent such
 7    additional optional contributions  were  made,  and  then  in
 8    accordance with the remaining Sections of this Article to the
 9    extent  of  years  of  service  credit  with respect to which
10    additional optional contributions were not made.  The  change
11    in  minimum  retirement  age  (from  60  to  55) made by this
12    amendatory Act of 1993 applies to persons who begin receiving
13    a retirement annuity under  this  Section  on  or  after  the
14    effective  date  of  this  amendatory  Act, without regard to
15    whether they are in service on or after that date.
16        (c)  Disability benefits.   In  lieu  of  the  disability
17    benefits   otherwise   payable   under   this   Article,  any
18    commissioner who (1) has elected to participate in the  Fund,
19    and  (2) has become permanently disabled and as a consequence
20    is unable to perform the duties of office, and (3) was making
21    optional contributions in accordance with this Section at the
22    time the disability was incurred,  may  elect  to  receive  a
23    disability  annuity calculated in accordance with the formula
24    in subsection (b).  For the purposes of this subsection, such
25    commissioner shall be considered  permanently  disabled  only
26    if:  (i) disability occurs while in service as a commissioner
27    and is  of  such  a  nature  as  to  prevent  the  reasonable
28    performance of the duties of office at the time; and (ii) the
29    Board  has  received  a  written  certification by at least 2
30    licensed  physicians  appointed  by  it  stating  that   such
31    commissioner is disabled and that the disability is likely to
32    be permanent.
33        (d)  Alternative  survivor's  benefits.   In  lieu of the
34    survivor's benefits otherwise payable under this Article, the
 
                            -16-     LRB093 06294 EFG 06412 b
 1    spouse or eligible child of any deceased commissioner who (1)
 2    had elected to participate in the Fund, and  (2)  was  either
 3    making  additional  optional  contributions  on  the  date of
 4    death, or was receiving  an  annuity  calculated  under  this
 5    Section at the time of death, may elect to receive an annuity
 6    beginning  on  the date of the commissioner's death, provided
 7    that the spouse and commissioner must have  been  married  on
 8    the date of the last termination of a service as commissioner
 9    and  for a continuous period of at least one year immediately
10    preceding death.
11        The annuity shall be payable beginning on the date of the
12    commissioner's death if the spouse is then age 50 or over, or
13    beginning at age 50 if the age of the spouse is less than  50
14    years.   If  a  minor  unmarried  child  or  children  of the
15    commissioner, under age 18, also survive, and  the  child  or
16    children  are  under  the  care  of  the eligible spouse, the
17    annuity  shall  begin  as  of  the  date  of  death  of   the
18    commissioner without regard to the spouse's age.
19        The annuity to a spouse shall be 66 2/3% of the amount of
20    retirement  annuity earned by the commissioner on the date of
21    death, subject  to  a  minimum  payment  of  10%  of  salary,
22    provided  that  if an eligible spouse, regardless of age, has
23    in his or her care at the date of death of  the  commissioner
24    any unmarried child or children of the commissioner under age
25    18,  the  minimum  annuity shall be 30% of the commissioner's
26    salary, plus 10% of salary on account of each minor child  of
27    the  commissioner,  subject  to  a  combined total payment on
28    account of a spouse and minor children not to exceed  50%  of
29    the  deceased commissioner's salary. In the event there shall
30    be no spouse of  the  commissioner  surviving,  or  should  a
31    spouse  die  while  eligible minor children still survive the
32    commissioner, each such child shall be entitled to an annuity
33    equal to 20% of salary  of  the  commissioner  subject  to  a
34    combined total payment on account of all such children not to
 
                            -17-     LRB093 06294 EFG 06412 b
 1    exceed  50%  of  salary of the commissioner. The salary to be
 2    used in the calculation of these benefits shall be  the  same
 3    as  that  prescribed  for determining a retirement annuity as
 4    provided in subsection (b) of this Section.
 5        Upon  the  death  of  a  commissioner   occurring   after
 6    termination  of a service or while in receipt of a retirement
 7    annuity, the combined total payment to  a  spouse  and  minor
 8    children,  or  to  minor children alone if no eligible spouse
 9    survives, shall be limited to 75% of the amount of retirement
10    annuity earned by the commissioner.
11        Adopted children shall have status as natural children of
12    the commissioner only if the proceedings  for  adoption  were
13    commenced  at  least  one  year  prior  to  the  date  of the
14    commissioner's death.
15        Marriage of a child or attainment of  age  18,  whichever
16    first  occurs,  shall render the child ineligible for further
17    consideration in the payment of annuity to a spouse or in the
18    increase  in  the  amount   thereof.   Upon   attainment   of
19    ineligibility   of   the   youngest   minor   child   of  the
20    commissioner, the annuity shall  immediately  revert  to  the
21    amount  payable upon death of a commissioner leaving no minor
22    children surviving. If the spouse is under  age  50  at  such
23    time, the annuity as revised shall be deferred until such age
24    is attained.
25        (e)  Refunds.     Refunds    of    additional    optional
26    contributions  shall  be made on the same basis and under the
27    same conditions as provided under  Section  13-601.  Interest
28    shall  be  credited  on  the  same  basis  and under the same
29    conditions as for other contributions.
30        Optional  contributions  shall  be  accounted  for  in  a
31    separate   Commission's   Optional   Contribution    Reserve.
32    Optional  contributions  under this Section shall be included
33    in the amount of employee contributions used to  compute  the
34    tax levy under Section 13-503.
 
                            -18-     LRB093 06294 EFG 06412 b
 1        (f)  Effective  date.  The effective date of this plan of
 2    optional alternative benefits and contributions shall be  the
 3    date  upon which approval was received from the U.S. Internal
 4    Revenue Service.  The plan of optional  alternative  benefits
 5    and  contributions  shall  not  be  available  to  any former
 6    employee receiving an annuity from the Fund on the  effective
 7    date,  unless  said  former  employee  re-enters  service and
 8    renders at least 3 years of additional service after the date
 9    of re-entry as a commissioner.
10    (Source: P.A. 90-12, eff. 6-13-97; 91-887, eff. 7-6-00.)

11        (40 ILCS 5/13-402) (from Ch. 108 1/2, par. 13-402)
12        Sec. 13-402.  Length of  service.   For  the  purpose  of
13    computing  the  length of service for the retirement annuity,
14    surviving spouse's annuity and child's  annuity,  service  of
15    120  days  in any one calendar year shall constitute one year
16    of service and service for any fractional part thereof  shall
17    constitute  an  equal  fractional part of one year of service
18    unless  specifically  provided  otherwise.   For  all   other
19    purposes under this Article, including but not limited to the
20    optional  plans  of  additional  benefits  and  contributions
21    provided  under Sections 13-304, 13-304.1, and 13-314 of this
22    Article, 26 pay periods of service during any 12  consecutive
23    months  shall  constitute  a  year  of  service,  and service
24    rendered for 50%  or  more  of  a  single  pay  period  shall
25    constitute  service for the full pay period.  Service of less
26    than 50% of a single pay period shall not be counted.
27    (Source: P.A. 90-12, eff. 6-13-97.)

28        (40 ILCS 5/13-502) (from Ch. 108 1/2, par. 13-502)
29        Sec.  13-502.  Employee  contributions;  deductions  from
30    salary.
31        (a)  Retirement annuity and child's annuity.  There shall
32    be deducted from each payment of salary an  amount  equal  to
 
                            -19-     LRB093 06294 EFG 06412 b
 1    7 1/2%  of  salary  as  the  employee's  contribution for the
 2    retirement annuity, including annual increases therefore  and
 3    child's annuity.
 4        (b)  Surviving spouse's annuity.  There shall be deducted
 5    from  each  payment  of  salary  an amount equal to 1 1/2% of
 6    salary as  the  employee's  contribution  for  the  surviving
 7    spouse's annuity and annual increases therefor.
 8        (c)  Pickup  of employee contributions.  The Employer may
 9    pick up employee contributions required under subsections (a)
10    and (b) of this Section.  If contributions are picked up they
11    shall be treated as Employer contributions in determining tax
12    treatment under the United States Internal Revenue Code,  and
13    shall  not  be included as gross income of the employee until
14    such time as they are distributed.  The  Employer  shall  pay
15    these  employee  contributions  from the same source of funds
16    used in paying salary to the employee.  The Employer may pick
17    up these contributions by a reduction in the cash  salary  of
18    the employee or by an offset against a future salary increase
19    or  by  a  combination  of  a  reduction in salary and offset
20    against a future salary increase.  If employee  contributions
21    are  picked up they shall be treated for all purposes of this
22    Article 13, including Sections 13-503 and 13-601, in the same
23    manner and to the same extent as employee contributions  made
24    prior to the date picked up.
25        (d)  Subject  to  the  requirements  of  federal law, the
26    Employer  shall  pick  up  optional  contributions  that  the
27    employee has  elected  to  pay  to  the  Fund  under  Section
28    13-304.1, and the contributions so picked up shall be treated
29    as  employer  contributions  for  the purposes of determining
30    federal tax  treatment.   The  Employer  shall  pick  up  the
31    contributions  by  a  reduction  in  the  cash  salary of the
32    employee and shall pay the contributions from the  same  fund
33    that  is  used to pay earnings to the employee.  The Employer
34    shall, however, continue to withhold federal and State income
 
                            -20-     LRB093 06294 EFG 06412 b
 1    taxes based upon contributions made  under  Section  13-304.1
 2    until the Internal Revenue Service or the federal courts rule
 3    that  pursuant to Section 414(h) of the U.S. Internal Revenue
 4    Code of 1986, as amended, these contributions  shall  not  be
 5    included  as  gross income of the employee until such time as
 6    they are distributed or made available.
 7        (e)  Each employee is deemed to consent and agree to  the
 8    deductions from compensation provided for in this Article.
 9        (f)  Subject  to  the  requirements  of  federal law, the
10    Employer shall pick up contributions that a commissioner  has
11    elected  to  pay  to  the  Fund under Section 13-314, and the
12    contributions so picked  up  shall  be  treated  as  employer
13    contributions  for  the  purposes  of determining federal tax
14    treatment.  The Employer shall pick up the contributions by a
15    reduction in the cash salary of the  commissioner  and  shall
16    pay  the  contributions  from the same fund as is used to pay
17    earnings to the commissioner.  The Employer  shall,  however,
18    continue  to  withhold  federal  and State income taxes based
19    upon contributions made under Section 13-314 until  the  U.S.
20    Internal  Revenue  Service  or  the  federal courts rule that
21    pursuant to Section 414(h) of the Internal  Revenue  Code  of
22    1986,  as  amended, these contributions shall not be included
23    as gross income of the employee until such time as  they  are
24    distributed or made available.
25    (Source: P.A. 92-599, eff. 6-28-02.)

26        (40 ILCS 5/13-601) (from Ch. 108 1/2, par. 13-601)
27        Sec. 13-601.  Refunds.
28        (a)  Withdrawal   from  service.   Upon  withdrawal  from
29    service, an employee under age 55 (age  50  if  the  employee
30    first  entered  service before June 13, 1997), or an employee
31    age 55 (age 50 if the employee first entered  service  before
32    June  13,  1997) or over but less than 60 having less than 20
33    years of service, or an employee age 60 or over  having  less
 
                            -21-     LRB093 06294 EFG 06412 b
 1    than  5 years of service shall be entitled, upon application,
 2    to a refund of total contributions from salary deductions  or
 3    amounts  otherwise  paid  under this Article by the employee.
 4    The  refund  shall  not  include  interest  credited  to  the
 5    contributions.  The Board may, in  its  discretion,  withhold
 6    payment  of a refund for a period not to exceed one year from
 7    the date of filing an application for refund.
 8        (b)  Surviving spouse's annuity contributions.  A  refund
 9    of  all amounts deducted from salary or otherwise contributed
10    by an employee for the surviving spouse's  annuity  shall  be
11    paid  upon  retirement  to  any  employee  who on the date of
12    retirement is either not married  or  is  married  but  whose
13    spouse  is not eligible for a surviving spouse's annuity paid
14    wholly or in part  under  this  Article.   The  refund  shall
15    include  interest  on each contribution at the rate of 3% per
16    annum compounded annually from the date of  the  contribution
17    to the date of the refund.
18        (c)  When   paid  to  children,  estate  or  beneficiary.
19    Whenever the  total  accumulations,  to  the  account  of  an
20    employee  from  employee  contributions,  including interest,
21    have not been paid to the employee and surviving spouse as  a
22    retirement  or  spouse's  annuity  before  the  death  of the
23    survivor of the employee and spouse, a refund shall  be  paid
24    as  follows:   an  amount equal to the excess of such amounts
25    over the amounts paid on such annuities without  interest  on
26    either  such  amount,  shall  be  paid to the children of the
27    employee, in equal parts to each,  unless  the  employee  has
28    directed   in  writing,  signed  by  him  before  an  officer
29    authorized to administer oaths,  and  filed  with  the  Board
30    before  the  employee's  death, that any such amount shall be
31    refunded and paid to any one or more of such children; and if
32    there  are  not   children,   such   other   beneficiary   or
33    beneficiaries  as  might  be  designated by the employee.  If
34    there are no such children or designation of beneficiary, the
 
                            -22-     LRB093 06294 EFG 06412 b
 1    refund shall be paid to the personal  representative  of  the
 2    employee's estate.
 3        If  a  personal representative of the estate has not been
 4    appointed within 90 days from the  date  on  which  a  refund
 5    became  payable, the refund may be applied, in the discretion
 6    of the Board, toward the payment of  the  employee's  or  the
 7    surviving  spouse's  burial  expenses.  Any remaining balance
 8    shall be paid to the heirs of the employee according  to  the
 9    law of descent and distribution of the State of Illinois.
10        If  a  reversionary annuity becomes payable under Section
11    13-303, the refund provided in this section shall not be paid
12    until the death of the reversionary annuitant and the  refund
13    otherwise  payable  under  this section shall be then further
14    reduced by the amount of the reversionary annuity paid.
15        (d)  In lieu of annuity.  Notwithstanding the  provisions
16    set  forth  in  subsection  (a)  of this section, whenever an
17    employee's or surviving spouse's annuity will  be  less  than
18    $200 per month, the employee or surviving spouse, as the case
19    may be, may elect to receive a refund of accumulated employee
20    contributions;  provided,  however,  that  if the election is
21    made by a surviving spouse the refund shall be reduced by any
22    amounts theretofore paid to the employee in the  form  of  an
23    annuity.
24        (e)  Forfeiture  of  rights.   An  employee  or surviving
25    spouse who receives a refund forfeits the right to receive an
26    annuity or any  other  benefit  payable  under  this  Article
27    except that if the refund is to a surviving spouse, any child
28    or  children  of  the  employee  shall not be deprived of the
29    right to receive a child's annuity  as  provided  in  Section
30    13-308  of this Article, and the payment of a child's annuity
31    shall not reduce  the  amount  refundable  to  the  surviving
32    spouse.
33    (Source: P.A. 87-794; 87-1265.)
 
                            -23-     LRB093 06294 EFG 06412 b
 1        (40 ILCS 5/13-603) (from Ch. 108 1/2, par. 13-603)
 2        Sec.  13-603.  Restoration of rights.  If an employee who
 3    has received a refund subsequently re-enters the service  and
 4    renders  one  year  of  contributing service from the date of
 5    such  re-entry,  the  employee  shall  be  entitled  to  have
 6    restored all  accumulation  and  service  credits  previously
 7    forfeited  by  making  a  repayment  of the refund, including
 8    interest from the date of the refund to the date of repayment
 9    at a rate equal  to  the  higher  of  8%  per  annum  or  the
10    actuarial  investment  return  assumption  used in the Fund's
11    most recent Annual Actuarial  Statement.   Repayment  may  be
12    made  either  directly  to the Fund or in a manner similar to
13    that provided for the contributions  required  under  Section
14    13-502.    The  service  credits  represented thereby, or any
15    part thereof, shall not  become  effective  unless  the  full
16    amount due has been paid by the employee, including interest.
17    The  repayment  must  be  made  in full no later than 90 days
18    following the date of the employee's  final  withdrawal  from
19    service.  If the employee fails to make a full repayment, any
20    partial  amounts  paid  by  the  employee  shall  be refunded
21    without  interest  if  the  employee  dies  in   service   or
22    withdraws.
23    (Source: P.A. 91-887, eff. 7-6-00.)

24        Section  90.  The State Mandates Act is amended by adding
25    Section 8.27 as follows:

26        (30 ILCS 805/8.27 new)
27        Sec. 8.27. Exempt mandate.   Notwithstanding  Sections  6
28    and  8 of this Act, no reimbursement by the State is required
29    for  the  implementation  of  any  mandate  created  by  this
30    amendatory Act of the 93rd General Assembly.

31        Section 99.  Effective date.  This Act takes effect  upon
 
                            -24-     LRB093 06294 EFG 06412 b
 1    becoming law.