Rep. Robert S. Molaro
Filed: 5/23/2007
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1 | AMENDMENT TO HOUSE BILL 1697
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2 | AMENDMENT NO. ______. Amend House Bill 1697 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Illinois Pension Code is amended by | ||||||
5 | changing Sections 14-119, 14-121, 14-130, 14-131, and 14-133 | ||||||
6 | and by adding Section 14-152.2 as follows:
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7 | (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
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8 | Sec. 14-119. Amount of widow's annuity.
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9 | (a) The widow's annuity shall be 50% of the amount of | ||||||
10 | retirement annuity
payable to the member on the date of death | ||||||
11 | while on retirement if an
annuitant, or on the date of his | ||||||
12 | death while in service if an employee,
regardless of his age on | ||||||
13 | such date, or on the date of withdrawal if death
occurred after | ||||||
14 | termination of service under the conditions prescribed in
the | ||||||
15 | preceding Section.
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16 | (b) If an eligible widow, regardless of age, has in her |
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1 | care any
unmarried child or children of the member under age 18 | ||||||
2 | (under age 22 if a
full-time student), the widow's
annuity | ||||||
3 | shall be increased in the amount of 5% of the retirement | ||||||
4 | annuity
for each such child, but the combined payments for a | ||||||
5 | widow and
children shall not exceed 66 2/3% of the member's | ||||||
6 | earned
retirement annuity.
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7 | The amount of retirement annuity from which the widow's
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8 | annuity is derived shall be that earned by the member without | ||||||
9 | regard to
whether he attained age 60 prior to his withdrawal | ||||||
10 | under the conditions
stated or prior to his death.
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11 | (c) Adopted children shall be considered as children of the | ||||||
12 | member
only if the proceedings for adoption were commenced at | ||||||
13 | least 1 year
prior to the member's death.
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14 | Marriage of a child shall render the child ineligible for | ||||||
15 | further
consideration in the increase in the amount of the | ||||||
16 | widow's annuity.
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17 | Attainment of age 18 (age 22 if a full-time student)
shall | ||||||
18 | render a child ineligible for
further consideration in the | ||||||
19 | increase of the widow's annuity, but the
annuity to the widow | ||||||
20 | shall be continued thereafter, without regard to
her age at | ||||||
21 | that time.
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22 | (d) Except as otherwise provided in this subsection (d) and | ||||||
23 | Section 14-152.2, a widow's annuity payable on
account of any | ||||||
24 | covered employee who has
shall have
been a covered employee for | ||||||
25 | at least 18 months shall be reduced
by 1/2 of the amount of | ||||||
26 | survivors benefits to which his beneficiaries are
eligible |
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1 | under the provisions of the Federal Social Security Act, except
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2 | that (1) the amount of any widow's annuity payable under this | ||||||
3 | Article shall
not be reduced by reason of any increase under | ||||||
4 | that Act which occurs after
the offset required by this | ||||||
5 | subsection is first applied to that annuity,
and (2) for | ||||||
6 | benefits granted on or after January 1, 1992, the offset under
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7 | this subsection (d) shall not exceed 50% of the amount of | ||||||
8 | widow's annuity
otherwise payable.
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9 | Beginning on July 1, 2008 (and except as otherwise provided | ||||||
10 | in Section 14-152.2), the offset under this subsection (d) | ||||||
11 | shall no
longer be applied to a widow's annuity of any person | ||||||
12 | receiving retirement benefits or a widow's annuity on the | ||||||
13 | effective date of this amendatory Act of the 95th General | ||||||
14 | Assembly.
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15 | Except as otherwise provided in Section 14-152.2, an active | ||||||
16 | member of the System first employed before January 1, 2008 must | ||||||
17 | file an election to have the offset under this subsection (d) | ||||||
18 | applied to his or her widow's annuity with the System before | ||||||
19 | March 1, 2008. If no election is made by the employee, then the | ||||||
20 | employee must begin making the additional 0.6% contribution | ||||||
21 | required under Section 14-133, and he or she may apply before | ||||||
22 | September 1, 2008 to make the contributions for any prior | ||||||
23 | service. Once the member has made an election or failed to make | ||||||
24 | the election to have the offset applied to his or her widow's | ||||||
25 | annuity within the specified period, the member must maintain | ||||||
26 | that status until a qualifying event occurs. Upon the |
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1 | occurrence of a qualifying event, (i) if the member's widow's | ||||||
2 | annuity is subject to the offset, the member may elect to | ||||||
3 | remove the offset and begin to make contributions for any | ||||||
4 | service after that date and, within 60 days after that date, | ||||||
5 | make contributions for any prior service without interest or | ||||||
6 | (ii) if the member's widow's annuity is not subject to the | ||||||
7 | offset, the member may elect to have the offset applied to his | ||||||
8 | or her widow's annuity and cease making the contributions, but | ||||||
9 | shall receive no refund for the contributions.
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10 | Except as otherwise provided in Section 14-152.2, unless an | ||||||
11 | active member of the System first employed on or after January | ||||||
12 | 1, 2008 files an election to have the offset under this | ||||||
13 | subsection (d) applied to his or her widow's annuity with the | ||||||
14 | System during his or her qualifying period, he or she shall | ||||||
15 | begin making the 1.1% contribution required under Section | ||||||
16 | 14-133. After the qualifying period, the member must maintain | ||||||
17 | his or her offset status until a qualifying event occurs. Upon | ||||||
18 | the occurrence of a qualifying event, (i) if the member's | ||||||
19 | widow's annuity is subject to the offset, the member may elect | ||||||
20 | to remove the offset and begin to make contributions for any | ||||||
21 | service after that date and, within 60 days after that date, | ||||||
22 | make contributions for any prior service without interest or | ||||||
23 | (ii) if the member's widow's annuity is not subject to the | ||||||
24 | offset, the member may elect to have the offset applied to his | ||||||
25 | or her widow's annuity and cease making the contributions, but | ||||||
26 | shall receive no refund for the contributions.
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1 | If a member has a qualifying spouse at the time of | ||||||
2 | retirement and has made the additional contributions pursuant | ||||||
3 | to Section 14-133 to remove the offset under this subsection | ||||||
4 | (d) for all of his or her creditable service, then the offset | ||||||
5 | under this subsection (d) does not apply to the member's | ||||||
6 | widow's benefit. If a member has a qualifying spouse at the | ||||||
7 | time of retirement and has made the additional contributions | ||||||
8 | pursuant to Section 14-133 to remove the offset under this | ||||||
9 | subsection (d) for a portion of his or her creditable service, | ||||||
10 | then the member may either (A) receive a refund of the | ||||||
11 | additional contributions made and have the offset under this | ||||||
12 | subsection (d) apply to the member's widow's annuity or (B) | ||||||
13 | make the required contributions for any period for which he or | ||||||
14 | she has not contributed, plus interest. If a member does not | ||||||
15 | have a qualifying spouse at the time of retirement, then the | ||||||
16 | member may receive a refund of the additional contributions | ||||||
17 | made pursuant to Section 14-133 to remove the offset under this | ||||||
18 | subsection (d).
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19 | For the purposes of this subsection (d), "qualifying event" | ||||||
20 | includes a change in marital status (including the death of a | ||||||
21 | spouse) or the adoption or birth of a child.
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22 | (e) Upon the death of a recipient of a widow's annuity the | ||||||
23 | excess, if
any, of the member's accumulated contributions plus | ||||||
24 | credited interest over
all annuity payments to the member and | ||||||
25 | widow, exclusive of the $500 lump
sum payment, shall be paid to | ||||||
26 | the named beneficiary of the widow, or if
none has been named, |
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1 | to the estate of the widow, provided no reversionary
annuity is | ||||||
2 | payable.
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3 | (f) On January 1, 1981, any recipient of a widow's annuity | ||||||
4 | who was receiving
a widow's annuity on or before January 1, | ||||||
5 | 1971, shall have her widow's annuity
then being paid increased | ||||||
6 | by 1% for each full year which has elapsed from
the date the | ||||||
7 | widow's annuity began. On January 1, 1982, any recipient
of a | ||||||
8 | widow's annuity who began receiving a widow's annuity after | ||||||
9 | January
1, 1971, but before January 1, 1981, shall have her | ||||||
10 | widow's annuity then
being paid increased by 1% for each full | ||||||
11 | year which has elapsed from the
date the widow's annuity began. | ||||||
12 | On January 1, 1987, any recipient of a
widow's annuity who | ||||||
13 | began receiving the widow's annuity on or before January
1, | ||||||
14 | 1977, shall have the monthly widow's annuity increased by $1
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15 | for each full year which has elapsed since the date the
annuity | ||||||
16 | began.
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17 | (g) Beginning January 1, 1990, every widow's annuity shall | ||||||
18 | be
increased (1) on each January 1 occurring on or after the | ||||||
19 | commencement
of the annuity if the deceased member died while | ||||||
20 | receiving a retirement
annuity, or (2) in other cases, on each | ||||||
21 | January 1 occurring on or after
the first anniversary of the | ||||||
22 | commencement of the annuity, by an amount
equal to 3% of the | ||||||
23 | current amount of the annuity, including any previous
increases | ||||||
24 | under this Article. Such increases shall apply without regard | ||||||
25 | to
whether the deceased member was in service on or after the | ||||||
26 | effective date
of Public Act 86-1488, but shall not accrue for |
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1 | any period prior to January
1, 1990.
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2 | (Source: P.A. 90-448, eff. 8-16-97.)
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3 | (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
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4 | Sec. 14-121. Amount of survivors annuity. A survivors | ||||||
5 | annuity
beneficiary shall be entitled upon death of the member | ||||||
6 | to a single sum
payment of $1,000, payable pro rata among all | ||||||
7 | persons entitled thereto,
together with a survivors annuity | ||||||
8 | payable at the rates and under the
conditions specified in this | ||||||
9 | Article.
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10 | (a) If the survivors annuity beneficiary is a spouse, the | ||||||
11 | survivors
annuity shall be 30% of final average compensation | ||||||
12 | subject to a maximum
payment of $400 per month.
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13 | (b) If an eligible child or children under the care of a | ||||||
14 | spouse also
survives the member, such spouse as natural | ||||||
15 | guardian of the child or
children shall receive, in addition to | ||||||
16 | the foregoing annuity, 20% of final
average compensation on | ||||||
17 | account of each such child and 10% of final average
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18 | compensation divided pro rata among such children, subject to a | ||||||
19 | maximum
payment on account of all survivor annuity | ||||||
20 | beneficiaries of $600 per month,
or 80% of the member's final | ||||||
21 | average compensation, whichever is the lesser.
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22 | (c) If the survivors annuity beneficiary or beneficiaries | ||||||
23 | consists of
an unmarried child or children, the amount of | ||||||
24 | survivors annuity shall be
20% of final average compensation to | ||||||
25 | each child, and 10% of final average
compensation divided pro |
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1 | rata among all such children entitled to such annuity,
subject | ||||||
2 | to a maximum payment to all children combined of $600 per month
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3 | or 80% of the member's final average compensation, whichever is | ||||||
4 | the lesser.
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5 | (d) If the survivors annuity beneficiary is one or more | ||||||
6 | dependent parents,
the annuity shall be 20% of final average | ||||||
7 | compensation to each parent and
10% of final average | ||||||
8 | compensation divided pro rata among the parents who
qualify for | ||||||
9 | this annuity, subject to a maximum payment to both dependent
| ||||||
10 | parents of $400 per month.
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11 | (e) The survivors annuity to the spouse, children or | ||||||
12 | dependent parents of
a member whose death occurs after the date | ||||||
13 | of last withdrawal, or after
retirement, or while in service | ||||||
14 | following reentry into service after
retirement but before | ||||||
15 | completing 1 1/2 years of additional creditable
service, shall | ||||||
16 | not exceed the lesser of 80% of the member's earned
retirement | ||||||
17 | annuity at the date of death or the maximum previously
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18 | established in this Section.
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19 | (f) In applying the limitation prescribed on the combined | ||||||
20 | payments to
2 or more survivors annuity beneficiaries, the | ||||||
21 | annuity on account of each
beneficiary shall be reduced pro | ||||||
22 | rata until such time as the number of
beneficiaries makes the | ||||||
23 | reduction no longer applicable.
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24 | (g) Except as otherwise provided in this subsection (g) and | ||||||
25 | Section 14-152.2, a survivors annuity payable on account of
any | ||||||
26 | covered employee who has
shall have been a covered employee for |
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1 | at
least 18 months at date of death or last withdrawal, | ||||||
2 | whichever is the later,
shall be reduced by 1/2 of the | ||||||
3 | survivors benefits to which his beneficiaries
are eligible | ||||||
4 | under the federal Social Security Act, except that (1) the
| ||||||
5 | survivors annuity payable under this Article shall not be | ||||||
6 | reduced by any
increase under that Act which occurs after the | ||||||
7 | offset required by this
subsection is first applied to that | ||||||
8 | annuity, (2) for benefits granted on or
after January 1, 1992, | ||||||
9 | the offset under this subsection (g) shall not exceed
50% of | ||||||
10 | the amount of survivors annuity otherwise payable.
| ||||||
11 | Beginning on July 1, 2008 (and except as otherwise provided | ||||||
12 | in Section 14-152.2), the offset under this subsection (g) | ||||||
13 | shall no
longer be applied to a survivors annuity of any person | ||||||
14 | receiving retirement benefits or a survivors annuity on the | ||||||
15 | effective date of this amendatory Act of the 95th General | ||||||
16 | Assembly.
| ||||||
17 | Except as otherwise provided in Section 14-152.2, an active | ||||||
18 | member of the System first employed before January 1, 2008 must | ||||||
19 | file an election to have the offset under this subsection (g) | ||||||
20 | applied to his or her survivors annuity with the System before | ||||||
21 | March 1, 2008. If no election is made by the employee, then the | ||||||
22 | employee must begin making the additional 0.6% contribution | ||||||
23 | required pursuant to Section 14-133, and he or she may apply | ||||||
24 | before September 1, 2008 to make the contributions for any | ||||||
25 | prior service. Once the member has made an election or failed | ||||||
26 | to make the election to have the offset applied to his or her |
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| |||||||
1 | survivors annuity within the specified period, the member must | ||||||
2 | maintain that status until a qualifying event occurs. Upon the | ||||||
3 | occurrence of a qualifying event, (i) if the member's survivors | ||||||
4 | annuity is subject to the offset, the member may elect to | ||||||
5 | remove the offset and begin to make contributions for any | ||||||
6 | service after that date and, within 60 days after that date, | ||||||
7 | make contributions for any prior service without interest or | ||||||
8 | (ii) if the member's survivors annuity is not subject to the | ||||||
9 | offset, the member may elect to have the offset applied to his | ||||||
10 | or her survivors annuity and cease making the contributions, | ||||||
11 | but shall receive no refund for the contributions.
| ||||||
12 | Except as otherwise provided in Section 14-152.2, unless an | ||||||
13 | active member of the System first employed on or after January | ||||||
14 | 1, 2008 files an election to have the offset under this | ||||||
15 | subsection (g) applied to his or her survivors annuity with the | ||||||
16 | System during his or her qualifying period, he or she shall | ||||||
17 | begin making the 1.1% contribution required under Section | ||||||
18 | 14-133. After the qualifying period, the member must maintain | ||||||
19 | his or her offset status until a qualifying event occurs. Upon | ||||||
20 | the occurrence of a qualifying event, (i) if the member's | ||||||
21 | survivors annuity is subject to the offset, the member may | ||||||
22 | elect to remove the offset and begin to make contributions for | ||||||
23 | any service after that date and, within 60 days after that | ||||||
24 | date, make contributions for any prior service without interest | ||||||
25 | or (ii) if the member's survivors annuity is not subject to the | ||||||
26 | offset, the member may elect to have the offset applied to his |
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| |||||||
1 | or her survivors annuity and cease making the contributions, | ||||||
2 | but shall receive no refund for the contributions.
| ||||||
3 | If a member has a qualifying survivor at the time of | ||||||
4 | retirement and has made the additional contributions pursuant | ||||||
5 | to Section 14-133 to remove the offset under this subsection | ||||||
6 | (g) for all of his or her creditable service, then the offset | ||||||
7 | under this subsection (d) does not apply to the member's | ||||||
8 | survivors benefit. If a member has a qualifying survivor at the | ||||||
9 | time of retirement and has made the additional contributions | ||||||
10 | under Section 14-133 to remove the offset under this subsection | ||||||
11 | (g) for a portion of his or her creditable service, then the | ||||||
12 | member may either (A) receive a refund of the additional | ||||||
13 | contributions made and have the offset under this subsection | ||||||
14 | (g) apply to the member's survivors annuity or (B) make the | ||||||
15 | required contributions for any period for which he or she has | ||||||
16 | not contributed, plus interest. If a member does not have a | ||||||
17 | qualifying survivor at the time of retirement, then the member | ||||||
18 | may receive a refund of the additional contributions made | ||||||
19 | pursuant to Section 14-133 to remove the offset under this | ||||||
20 | subsection (g).
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21 | For the purposes of this subsection (g), "qualifying event" | ||||||
22 | includes a change in marital status (including the death of a | ||||||
23 | spouse) or the adoption or birth of a child.
| ||||||
24 | (h) The minimum payment to a beneficiary hereunder shall be | ||||||
25 | $60 per month,
which shall be reduced in accordance with the | ||||||
26 | limitation prescribed on the
combined payments to all |
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1 | beneficiaries of a member.
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2 | (i) Subject to the conditions set forth in Section 14-120, | ||||||
3 | the minimum
total survivors annuity benefit payable to the | ||||||
4 | survivors annuity beneficiaries
of a deceased member or | ||||||
5 | annuitant whose death occurs on or after January
1, 1984, shall | ||||||
6 | be 50% of the amount of retirement annuity that was or would
| ||||||
7 | have been payable to the deceased on the date of death, | ||||||
8 | regardless of the
age of the deceased on such date. If the | ||||||
9 | minimum total benefit provided
by this subsection exceeds the | ||||||
10 | maximum otherwise imposed by this Section,
the minimum total | ||||||
11 | benefit shall nevertheless be payable. Any increase in
the | ||||||
12 | total survivors annuity benefit resulting from the operation of | ||||||
13 | this
subsection shall be divided among the survivors annuity | ||||||
14 | beneficiaries of
the deceased in proportion to their shares of | ||||||
15 | the total survivors annuity
benefit otherwise payable under | ||||||
16 | this Section.
| ||||||
17 | (j) Any survivors annuity beneficiary whose annuity | ||||||
18 | terminates due to any
condition specified in this Article other | ||||||
19 | than death shall be entitled to
a refund of the excess, if any, | ||||||
20 | of the accumulated contributions of the
member plus credited | ||||||
21 | interest over all payments to the member and beneficiary
or | ||||||
22 | beneficiaries, exclusive of the single sum payment of $1,000, | ||||||
23 | provided
no future survivors or reversionary annuity benefits | ||||||
24 | are payable.
| ||||||
25 | (k) Upon the death of the last eligible recipient of a | ||||||
26 | survivors
annuity the excess, if any, of the member's |
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| |||||||
1 | accumulated contributions plus
credited interest over all | ||||||
2 | annuity payments to the member and survivors
exclusive of the | ||||||
3 | single sum payment of $1000, shall be paid to the named
| ||||||
4 | beneficiary of the last eligible survivor, or if none has been | ||||||
5 | named, to
the estate of the last eligible survivor, provided no | ||||||
6 | reversionary annuity
is payable.
| ||||||
7 | (l) On January 1, 1981, any survivor who was receiving a | ||||||
8 | survivors
annuity on or before January 1, 1971, shall have his | ||||||
9 | survivors annuity then
being paid increased by 1% for each full | ||||||
10 | year which has elapsed from the
date the annuity began. On | ||||||
11 | January 1, 1982, any survivor who began receiving
a survivor's | ||||||
12 | annuity after January 1, 1971, but before January 1, 1981,
| ||||||
13 | shall have his survivor's annuity then being paid increased by | ||||||
14 | 1% for each
full year that has elapsed from the date the | ||||||
15 | annuity began.
On January 1, 1987, any survivor who began | ||||||
16 | receiving a survivor's annuity
on or before January 1, 1977, | ||||||
17 | shall have the monthly survivor's annuity
increased by $1 for | ||||||
18 | each full year which has elapsed since the date the
survivor's | ||||||
19 | annuity began.
| ||||||
20 | (m) Beginning January 1, 1990, every survivor's annuity | ||||||
21 | shall be increased
(1) on each January 1 occurring on or after | ||||||
22 | the commencement of the annuity if
the deceased member died | ||||||
23 | while receiving a retirement annuity, or (2) in
other cases, on | ||||||
24 | each January 1 occurring on or after the first anniversary
of | ||||||
25 | the commencement of the annuity, by an amount equal to 3% of | ||||||
26 | the current
amount of the annuity, including any previous |
| |||||||
| |||||||
1 | increases under this Article.
Such increases shall apply | ||||||
2 | without regard to whether the deceased member
was in service on | ||||||
3 | or after the effective date of Public Act 86-1488,
but shall | ||||||
4 | not accrue for any period prior to January 1, 1990.
| ||||||
5 | (Source: P.A. 86-273; 86-1488; 87-794.)
| ||||||
6 | (40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
| ||||||
7 | Sec. 14-130. Refunds; rules.
| ||||||
8 | (a) Upon withdrawal a member is entitled to receive, upon | ||||||
9 | written
request, a refund of the member's contributions, | ||||||
10 | including credits granted
while in receipt of disability | ||||||
11 | benefits, without credited interest. The
board, in its | ||||||
12 | discretion may withhold payment of the refund of a member's
| ||||||
13 | contributions for a period not to exceed 1 year after the | ||||||
14 | member has ceased
to be an employee.
| ||||||
15 | For purposes of this Section, a member will be considered | ||||||
16 | to have
withdrawn from service if a change in, or transfer of, | ||||||
17 | his position
results in his becoming ineligible for continued | ||||||
18 | membership in this
System and eligible for membership in | ||||||
19 | another public retirement system
under this Act.
| ||||||
20 | (b) A member receiving a refund forfeits and relinquishes | ||||||
21 | all
accrued rights in the System, including all accumulated | ||||||
22 | creditable
service. If the person again becomes a member of the | ||||||
23 | System and
establishes at least 2 years of creditable service, | ||||||
24 | the member may repay
all the moneys previously refunded or a | ||||||
25 | portion of the moneys previously refunded representing |
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| |||||||
1 | contributions for one or more whole months of creditable | ||||||
2 | service. If a member repays a portion of moneys previously | ||||||
3 | refunded, he or she may later repay some or all of the | ||||||
4 | remaining portion of those previously refunded moneys. | ||||||
5 | However, a former member may restore
credits previously | ||||||
6 | forfeited by acceptance of a refund without returning to
| ||||||
7 | service by applying in writing and repaying to the System, by | ||||||
8 | April 1,
1993, the amount of the refund plus regular interest | ||||||
9 | calculated from the
date of refund to the date of repayment.
| ||||||
10 | The repayment of refunds issued prior to January 1, 1984 | ||||||
11 | shall consist
of the amount refunded plus 5% interest per annum | ||||||
12 | compounded annually for
the period from the date of the refund | ||||||
13 | to the end of the month in which
repayment is made. The | ||||||
14 | repayment of refunds issued after January 1, 1984
shall consist | ||||||
15 | of the amount refunded plus regular interest for the period
| ||||||
16 | from the date of refund to the end of the month in which | ||||||
17 | repayment is made.
The repayment of the refund of a person who | ||||||
18 | accepts an alternative retirement cancellation payment under | ||||||
19 | Section 14-108.5 shall consist of the entire amount paid to the | ||||||
20 | person under subsection (c) of Section 14-108.5 plus regular | ||||||
21 | interest for the period from the date of the refund to the end | ||||||
22 | of the month in which repayment is made. However, in the case | ||||||
23 | of a refund that is repaid in a lump sum between
January 1, | ||||||
24 | 1991 and July 1, 1991, repayment shall consist of the amount
| ||||||
25 | refunded plus interest at the rate of 2.5% per annum compounded | ||||||
26 | annually
from the date of the refund to the end of the month in |
| |||||||
| |||||||
1 | which repayment is made.
| ||||||
2 | Upon repayment, the member shall receive credit for the
| ||||||
3 | service for which the refund has been repaid, and the | ||||||
4 | corresponding member contributions and regular interest that | ||||||
5 | was forfeited by
acceptance of the refund, as well as regular | ||||||
6 | interest for the period of
non-membership. Such repayment shall | ||||||
7 | be made in full before retirement
either in a lump sum or in | ||||||
8 | installment payments in accordance with such
rules as may be | ||||||
9 | adopted by the board.
| ||||||
10 | (b-5) The Board may adopt rules governing the repayment of | ||||||
11 | refunds
and establishment of credits in cases involving awards | ||||||
12 | of back pay or
reinstatement. The rules may authorize repayment | ||||||
13 | of a refund in installment
payments and may waive the payment | ||||||
14 | of interest on refund amounts repaid in
full within a specified | ||||||
15 | period.
| ||||||
16 | (c) A member no longer in service who is unmarried and does | ||||||
17 | not have an eligible survivors annuity
beneficiary on the date | ||||||
18 | of application therefor is
entitled to a refund of | ||||||
19 | contributions for widow's annuity or survivors
annuity | ||||||
20 | purposes, or both, as the case may be, including the increased | ||||||
21 | amounts paid pursuant to the increase in contribution rates for | ||||||
22 | widow or survivors annuity purposes under Section 14-133 by | ||||||
23 | this amendatory Act of the 95th General Assembly, without | ||||||
24 | interest. A widow's
annuity or survivors annuity shall not be | ||||||
25 | payable upon the death of a person
who has received this | ||||||
26 | refund, unless prior to that death the amount of the
refund has |
| |||||||
| |||||||
1 | been repaid to the System, together with regular interest from | ||||||
2 | the
date of the refund to the date of repayment.
| ||||||
3 | (d) Any member who has service credit in any position for | ||||||
4 | which an
alternative retirement annuity is provided and in | ||||||
5 | relation to which an
increase in the rate of employee | ||||||
6 | contribution is required, shall be
entitled to a refund, | ||||||
7 | without interest, of that part of the member's
employee | ||||||
8 | contribution which results from that increase in the employee
| ||||||
9 | rate if the member does not qualify for that alternative | ||||||
10 | retirement
annuity at the time of retirement.
| ||||||
11 | (Source: P.A. 93-839, eff. 7-30-04; 94-455, eff. 8-4-05.)
| ||||||
12 | (40 ILCS 5/14-131)
(from Ch. 108 1/2, par. 14-131)
| ||||||
13 | Sec. 14-131. Contributions by State.
| ||||||
14 | (a) The State shall make contributions to the System by | ||||||
15 | appropriations of
amounts which, together with other employer | ||||||
16 | contributions from trust, federal,
and other funds, employee | ||||||
17 | contributions, investment income, and other income,
will be | ||||||
18 | sufficient to meet the cost of maintaining and administering | ||||||
19 | the System
on a 90% funded basis in accordance with actuarial | ||||||
20 | recommendations.
| ||||||
21 | For the purposes of this Section and Section 14-135.08, | ||||||
22 | references to State
contributions refer only to employer | ||||||
23 | contributions and do not include employee
contributions that | ||||||
24 | are picked up or otherwise paid by the State or a
department on | ||||||
25 | behalf of the employee.
|
| |||||||
| |||||||
1 | (b) The Board shall determine the total amount of State | ||||||
2 | contributions
required for each fiscal year on the basis of the | ||||||
3 | actuarial tables and other
assumptions adopted by the Board, | ||||||
4 | using the formula in subsection (e).
| ||||||
5 | The Board shall also determine a State contribution rate | ||||||
6 | for each fiscal
year, expressed as a percentage of payroll, | ||||||
7 | based on the total required State
contribution for that fiscal | ||||||
8 | year (less the amount received by the System from
| ||||||
9 | appropriations under Section 8.12 of the State Finance Act and | ||||||
10 | Section 1 of the
State Pension Funds Continuing Appropriation | ||||||
11 | Act, if any, for the fiscal year
ending on the June 30 | ||||||
12 | immediately preceding the applicable November 15
certification | ||||||
13 | deadline), the estimated payroll (including all forms of
| ||||||
14 | compensation) for personal services rendered by eligible | ||||||
15 | employees, and the
recommendations of the actuary.
| ||||||
16 | For the purposes of this Section and Section 14.1 of the | ||||||
17 | State Finance Act,
the term "eligible employees" includes | ||||||
18 | employees who participate in the System,
persons who may elect | ||||||
19 | to participate in the System but have not so elected,
persons | ||||||
20 | who are serving a qualifying period that is required for | ||||||
21 | participation,
and annuitants employed by a department as | ||||||
22 | described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| ||||||
23 | (c) Contributions shall be made by the several departments | ||||||
24 | for each pay
period by warrants drawn by the State Comptroller | ||||||
25 | against their respective
funds or appropriations based upon | ||||||
26 | vouchers stating the amount to be so
contributed. These amounts |
| |||||||
| |||||||
1 | shall be based on the full rate certified by the
Board under | ||||||
2 | Section 14-135.08 for that fiscal year.
From the effective date | ||||||
3 | of this amendatory Act of the 93rd General
Assembly through the | ||||||
4 | payment of the final payroll from fiscal year 2004
| ||||||
5 | appropriations, the several departments shall not make | ||||||
6 | contributions
for the remainder of fiscal year 2004 but shall | ||||||
7 | instead make payments
as required under subsection (a-1) of | ||||||
8 | Section 14.1 of the State Finance Act.
The several departments | ||||||
9 | shall resume those contributions at the commencement of
fiscal | ||||||
10 | year 2005.
| ||||||
11 | (d) If an employee is paid from trust funds or federal | ||||||
12 | funds, the
department or other employer shall pay employer | ||||||
13 | contributions from those funds
to the System at the certified | ||||||
14 | rate, unless the terms of the trust or the
federal-State | ||||||
15 | agreement preclude the use of the funds for that purpose, in
| ||||||
16 | which case the required employer contributions shall be paid by | ||||||
17 | the State.
From the effective date of this amendatory
Act of | ||||||
18 | the 93rd General Assembly through the payment of the final
| ||||||
19 | payroll from fiscal year 2004 appropriations, the department or | ||||||
20 | other
employer shall not pay contributions for the remainder of | ||||||
21 | fiscal year
2004 but shall instead make payments as required | ||||||
22 | under subsection (a-1) of
Section 14.1 of the State Finance | ||||||
23 | Act. The department or other employer shall
resume payment of
| ||||||
24 | contributions at the commencement of fiscal year 2005.
| ||||||
25 | (e) The calculation of the minimum contribution under this | ||||||
26 | subsection (e) shall not be affected by the changes made to |
| |||||||
| |||||||
1 | Sections 14-119, 14-121, 14-130, and 14-133 by this amendatory | ||||||
2 | Act of the 95th General Assembly.
| ||||||
3 | For State fiscal years 2011 through 2045, the minimum | ||||||
4 | contribution
to the System to be made by the State for each | ||||||
5 | fiscal year shall be an amount
determined by the System to be | ||||||
6 | sufficient to bring the total assets of the
System up to 90% of | ||||||
7 | the total actuarial liabilities of the System by the end
of | ||||||
8 | State fiscal year 2045. In making these determinations, the | ||||||
9 | required State
contribution shall be calculated each year as a | ||||||
10 | level percentage of payroll
over the years remaining to and | ||||||
11 | including fiscal year 2045 and shall be
determined under the | ||||||
12 | projected unit credit actuarial cost method.
| ||||||
13 | For State fiscal years 1996 through 2005, the State | ||||||
14 | contribution to
the System, as a percentage of the applicable | ||||||
15 | employee payroll, shall be
increased in equal annual increments | ||||||
16 | so that by State fiscal year 2011, the
State is contributing at | ||||||
17 | the rate required under this Section; except that
(i) for State | ||||||
18 | fiscal year 1998, for all purposes of this Code and any other
| ||||||
19 | law of this State, the certified percentage of the applicable | ||||||
20 | employee payroll
shall be 5.052% for employees earning eligible | ||||||
21 | creditable service under Section
14-110 and 6.500% for all | ||||||
22 | other employees, notwithstanding any contrary
certification | ||||||
23 | made under Section 14-135.08 before the effective date of this
| ||||||
24 | amendatory Act of 1997, and (ii)
in the following specified | ||||||
25 | State fiscal years, the State contribution to
the System shall | ||||||
26 | not be less than the following indicated percentages of the
|
| |||||||
| |||||||
1 | applicable employee payroll, even if the indicated percentage | ||||||
2 | will produce a
State contribution in excess of the amount | ||||||
3 | otherwise required under this
subsection and subsection (a):
| ||||||
4 | 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | ||||||
5 | 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| ||||||
6 | Notwithstanding any other provision of this Article, the | ||||||
7 | total required State
contribution to the System for State | ||||||
8 | fiscal year 2006 is $203,783,900.
| ||||||
9 | Notwithstanding any other provision of this Article, the | ||||||
10 | total required State
contribution to the System for State | ||||||
11 | fiscal year 2007 is $344,164,400.
| ||||||
12 | For each of State fiscal years 2008 through 2010, the State | ||||||
13 | contribution to
the System, as a percentage of the applicable | ||||||
14 | employee payroll, shall be
increased in equal annual increments | ||||||
15 | from the required State contribution for State fiscal year | ||||||
16 | 2007, so that by State fiscal year 2011, the
State is | ||||||
17 | contributing at the rate otherwise required under this Section.
| ||||||
18 | Beginning in State fiscal year 2046, the minimum State | ||||||
19 | contribution for
each fiscal year shall be the amount needed to | ||||||
20 | maintain the total assets of
the System at 90% of the total | ||||||
21 | actuarial liabilities of the System.
| ||||||
22 | Amounts received by the System pursuant to Section 25 of | ||||||
23 | the Budget Stabilization Act in any fiscal year do not reduce | ||||||
24 | and do not constitute payment of any portion of the minimum | ||||||
25 | State contribution required under this Article in that fiscal | ||||||
26 | year. Such amounts shall not reduce, and shall not be included |
| |||||||
| |||||||
1 | in the calculation of, the required State contributions under | ||||||
2 | this Article in any future year until the System has reached a | ||||||
3 | funding ratio of at least 90%. A reference in this Article to | ||||||
4 | the "required State contribution" or any substantially similar | ||||||
5 | term does not include or apply to any amounts payable to the | ||||||
6 | System under Section 25 of the Budget Stabilization Act.
| ||||||
7 | Notwithstanding any other provision of this Section, the | ||||||
8 | required State
contribution for State fiscal year 2005 and for | ||||||
9 | fiscal year 2008 and each fiscal year thereafter, as
calculated | ||||||
10 | under this Section and
certified under Section 14-135.08, shall | ||||||
11 | not exceed an amount equal to (i) the
amount of the required | ||||||
12 | State contribution that would have been calculated under
this | ||||||
13 | Section for that fiscal year if the System had not received any | ||||||
14 | payments
under subsection (d) of Section 7.2 of the General | ||||||
15 | Obligation Bond Act, minus
(ii) the portion of the State's | ||||||
16 | total debt service payments for that fiscal
year on the bonds | ||||||
17 | issued for the purposes of that Section 7.2, as determined
and | ||||||
18 | certified by the Comptroller, that is the same as the System's | ||||||
19 | portion of
the total moneys distributed under subsection (d) of | ||||||
20 | Section 7.2 of the General
Obligation Bond Act. In determining | ||||||
21 | this maximum for State fiscal years 2008 through 2010, however, | ||||||
22 | the amount referred to in item (i) shall be increased, as a | ||||||
23 | percentage of the applicable employee payroll, in equal | ||||||
24 | increments calculated from the sum of the required State | ||||||
25 | contribution for State fiscal year 2007 plus the applicable | ||||||
26 | portion of the State's total debt service payments for fiscal |
| |||||||
| |||||||
1 | year 2007 on the bonds issued for the purposes of Section 7.2 | ||||||
2 | of the General
Obligation Bond Act, so that, by State fiscal | ||||||
3 | year 2011, the
State is contributing at the rate otherwise | ||||||
4 | required under this Section.
| ||||||
5 | (f) After the submission of all payments for eligible | ||||||
6 | employees
from personal services line items in fiscal year 2004 | ||||||
7 | have been made,
the Comptroller shall provide to the System a | ||||||
8 | certification of the sum
of all fiscal year 2004 expenditures | ||||||
9 | for personal services that would
have been covered by payments | ||||||
10 | to the System under this Section if the
provisions of this | ||||||
11 | amendatory Act of the 93rd General Assembly had not been
| ||||||
12 | enacted. Upon
receipt of the certification, the System shall | ||||||
13 | determine the amount
due to the System based on the full rate | ||||||
14 | certified by the Board under
Section 14-135.08 for fiscal year | ||||||
15 | 2004 in order to meet the State's
obligation under this | ||||||
16 | Section. The System shall compare this amount
due to the amount | ||||||
17 | received by the System in fiscal year 2004 through
payments | ||||||
18 | under this Section and under Section 6z-61 of the State Finance | ||||||
19 | Act.
If the amount
due is more than the amount received, the | ||||||
20 | difference shall be termed the
"Fiscal Year 2004 Shortfall" for | ||||||
21 | purposes of this Section, and the
Fiscal Year 2004 Shortfall | ||||||
22 | shall be satisfied under Section 1.2 of the State
Pension Funds | ||||||
23 | Continuing Appropriation Act. If the amount due is less than | ||||||
24 | the
amount received, the
difference shall be termed the "Fiscal | ||||||
25 | Year 2004 Overpayment" for purposes of
this Section, and the | ||||||
26 | Fiscal Year 2004 Overpayment shall be repaid by
the System to |
| |||||||
| |||||||
1 | the Pension Contribution Fund as soon as practicable
after the | ||||||
2 | certification.
| ||||||
3 | (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | ||||||
4 | eff. 6-1-05; 94-839, eff. 6-6-06.)
| ||||||
5 | (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
| ||||||
6 | Sec. 14-133. Contributions on behalf of members.
| ||||||
7 | (a) Each participating employee shall make contributions | ||||||
8 | to the System,
based on the employee's compensation, as | ||||||
9 | follows:
| ||||||
10 | (1) Covered employees, except as indicated below, 3.5% | ||||||
11 | for
retirement annuity, and 0.5% for a widow or survivors
| ||||||
12 | annuity . After June 30, 2008, the retirement contribution | ||||||
13 | for a covered employee is increased 0.6% if the Social | ||||||
14 | Security offset is removed from his or her widow's or | ||||||
15 | survivors annuity, thus making his or her total | ||||||
16 | contribution for that purpose 1.1%. ;
| ||||||
17 | (2) Noncovered employees, except as indicated below, | ||||||
18 | 7% for retirement
annuity and 1% for a widow or survivors | ||||||
19 | annuity . ;
| ||||||
20 | (3) Noncovered employees serving in a position in which | ||||||
21 | "eligible
creditable service" as defined in Section 14-110 | ||||||
22 | may be earned, 1% for a widow
or survivors annuity
plus the | ||||||
23 | following amount for retirement annuity: 8.5% through | ||||||
24 | December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% | ||||||
25 | in 2004 and thereafter . ;
|
| |||||||
| |||||||
1 | (4) Covered employees serving in a position in which | ||||||
2 | "eligible creditable
service" as defined in Section 14-110 | ||||||
3 | may be earned, 0.5% for a widow or survivors annuity ,
plus | ||||||
4 | the following amount for retirement annuity: 5% through | ||||||
5 | December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 | ||||||
6 | and thereafter . After June 30, 2008, the retirement | ||||||
7 | contribution for a covered employee is increased 0.6% to | ||||||
8 | remove the Social Security offset from his or her widow's | ||||||
9 | or survivors annuity, thus making his or her total | ||||||
10 | contribution for that purpose 1.1%. ;
| ||||||
11 | (5) Each security employee of the Department of | ||||||
12 | Corrections
or of the Department of Human Services who is a | ||||||
13 | covered employee, 0.5% for a widow or survivors annuity ,
| ||||||
14 | plus the following amount for retirement annuity: 5% | ||||||
15 | through December 31,
2001; 6% in 2002; 7% in 2003; and 8% | ||||||
16 | in 2004 and thereafter . After June 30, 2008, the retirement | ||||||
17 | contribution for a covered employee is increased 0.6% to | ||||||
18 | remove the Social Security offset from his or her widow's | ||||||
19 | or survivors annuity, thus making his or her total | ||||||
20 | contribution for that purpose 1.1%. ;
| ||||||
21 | (6) Each security employee of the Department of | ||||||
22 | Corrections
or of the Department of Human Services who is | ||||||
23 | not a covered employee, 1% for a widow or survivors annuity
| ||||||
24 | plus the following amount for retirement annuity: 8.5% | ||||||
25 | through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and | ||||||
26 | 11.5% in 2004 and thereafter.
|
| |||||||
| |||||||
1 | (b) Contributions shall be in the form of a deduction from
| ||||||
2 | compensation and shall be made notwithstanding that the | ||||||
3 | compensation
paid in cash to the employee shall be reduced | ||||||
4 | thereby below the minimum
prescribed by law or regulation. Each | ||||||
5 | member is deemed to consent and
agree to the deductions from | ||||||
6 | compensation provided for in this Article,
and shall receipt in | ||||||
7 | full for salary or compensation.
| ||||||
8 | (c) The increase in contributions by covered members for | ||||||
9 | widow or survivors annuity purposes provided by this amendatory | ||||||
10 | Act of the 95th General Assembly does not apply to persons who | ||||||
11 | first become members of the System on or after July 1, 2013, if | ||||||
12 | the new benefit increase created by this amendatory Act expires | ||||||
13 | in accordance with Section 14-152.1(d) and Section 14-152.2.
| ||||||
14 | (Source: P.A. 92-14, eff. 6-28-01.)
| ||||||
15 | (40 ILCS 5/14-152.2 new)
| ||||||
16 | Sec. 14-152.2. New benefit increases. The General Assembly | ||||||
17 | finds and declares that the amendment to Sections 14-119 and | ||||||
18 | 14-121 made by this amendatory Act of the 95th General | ||||||
19 | Assembly, which removes the social security offset from certain | ||||||
20 | widow's and survivors annuities beginning July 1, 2008, | ||||||
21 | constitutes a new benefit increase within the meaning of | ||||||
22 | Section 14-152.1. Funding for this new benefit increase will be | ||||||
23 | provided by the additional employee contributions made under | ||||||
24 | Section 14-133 by this amendatory Act. | ||||||
25 | Unless this new benefit increase is extended by the General |
| |||||||
| |||||||
1 | Assembly, it will expire on July 1, 2013. If this new benefit | ||||||
2 | increase expires: | ||||||
3 | (i) for persons who first become members of the System | ||||||
4 | on or after the July 1, 2013 expiration date (and their | ||||||
5 | widows and survivors), the social security offsets under | ||||||
6 | Section 14-119(d) and Section 14-121(g), as they existed | ||||||
7 | immediately prior to the effective date of this amendatory | ||||||
8 | Act, are reinstated, and the increase in contributions by | ||||||
9 | covered members for widow or survivors annuity purposes | ||||||
10 | under Section 14-133 does not apply; and | ||||||
11 | (ii) for persons who first become members of the System | ||||||
12 | before July 1, 2013 and made the required elective | ||||||
13 | contributions under Section 14-133 (and their widows and | ||||||
14 | survivors), the social security offsets under Section | ||||||
15 | 14-119(d) and Section 14-121(g) remain inapplicable after | ||||||
16 | July 1, 2008 and the increase in contributions by covered | ||||||
17 | members for widow or survivors annuity purposes under | ||||||
18 | Section 14-133 remains in effect.
| ||||||
19 | Section 99. Effective date. This Act takes effect upon | ||||||
20 | becoming law.".
|