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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||||||||||||||||||||
5 | Sections 1-113, 13-215, 13-216, 13-309, 13-502, 13-601, and | ||||||||||||||||||||||||
6 | 13-706 as follows:
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7 | (40 ILCS 5/1-113) (from Ch. 108 1/2, par. 1-113)
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8 | Sec. 1-113. Investment authority of certain pension funds, | ||||||||||||||||||||||||
9 | not including
those established under Article 3 or 4. The | ||||||||||||||||||||||||
10 | investment authority of a board
of trustees of a retirement | ||||||||||||||||||||||||
11 | system or pension fund established under this
Code shall, if so | ||||||||||||||||||||||||
12 | provided in the Article establishing such retirement system
or | ||||||||||||||||||||||||
13 | pension fund, embrace the following investments:
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14 | (1) Bonds, notes and other direct obligations of the United | ||||||||||||||||||||||||
15 | States
Government; bonds, notes and other obligations of any | ||||||||||||||||||||||||
16 | United States
Government agency or instrumentality, whether or | ||||||||||||||||||||||||
17 | not guaranteed; and
obligations the principal and interest of | ||||||||||||||||||||||||
18 | which are guaranteed
unconditionally by the United States | ||||||||||||||||||||||||
19 | Government or by an agency or
instrumentality thereof.
| ||||||||||||||||||||||||
20 | (2) Obligations of the Inter-American Development Bank, | ||||||||||||||||||||||||
21 | the
International Bank for Reconstruction and Development, the | ||||||||||||||||||||||||
22 | African
Development Bank, the International Finance | ||||||||||||||||||||||||
23 | Corporation, and the Asian
Development Bank.
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| |||||||
1 | (3) Obligations of any state, or of any political | ||||||
2 | subdivision in
Illinois, or of any county or city in any other | ||||||
3 | state having a
population as shown by the last federal census | ||||||
4 | of not less than 30,000
inhabitants provided that such | ||||||
5 | political subdivision is not permitted by
law to become | ||||||
6 | indebted in excess of 10% of the assessed valuation of
property | ||||||
7 | therein and has not defaulted for a period longer than 30 days
| ||||||
8 | in the payment of interest and principal on any of its general
| ||||||
9 | obligations or indebtedness during a period of 10 calendar | ||||||
10 | years
immediately preceding such investment.
| ||||||
11 | (4) Nonconvertible bonds, debentures, notes and other | ||||||
12 | corporate
obligations of any corporation created or existing | ||||||
13 | under the laws of the
United States or any state, district or | ||||||
14 | territory thereof, provided
there has been no default on the | ||||||
15 | obligations of the corporation or its
predecessor(s) during the | ||||||
16 | 5 calendar years immediately preceding the
purchase. Up to 5% | ||||||
17 | of the assets of
a pension fund established under Article 9 of | ||||||
18 | this Code may be
invested in nonconvertible bonds, debentures, | ||||||
19 | notes, and other corporate
obligations of corporations created | ||||||
20 | or existing under the laws of a foreign
country, provided there | ||||||
21 | has been no default on the obligations of the
corporation or | ||||||
22 | its predecessors during the 5 calendar years immediately
| ||||||
23 | preceding the date of purchase.
| ||||||
24 | (5) Obligations guaranteed by the Government of Canada, or | ||||||
25 | by any
Province of Canada, or by any Canadian city with a | ||||||
26 | population of not
less than 150,000 inhabitants, provided (a) |
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| |||||||
1 | they are payable in United
States currency and are exempt from | ||||||
2 | any Canadian withholding tax; (b)
the investment in any one | ||||||
3 | issue of bonds shall not exceed 10% of the
amount outstanding; | ||||||
4 | and (c) the total investments at book value in
Canadian | ||||||
5 | securities shall be limited to 5% of the total investment
| ||||||
6 | account of the board at book value.
| ||||||
7 | (5.1) Direct obligations of the State of Israel for the | ||||||
8 | payment of
money, or obligations for the payment of money which | ||||||
9 | are guaranteed as
to the payment of principal and interest by | ||||||
10 | the State of Israel, or common
or preferred stock or notes | ||||||
11 | issued by a bank owned or controlled in whole
or in part by the | ||||||
12 | State of Israel, on the following conditions:
| ||||||
13 | (a) The total investments in such obligations shall not | ||||||
14 | exceed 5% of
the book value of the aggregate investments | ||||||
15 | owned by the board;
| ||||||
16 | (b) The State of Israel shall not be in default in the | ||||||
17 | payment of
principal or interest on any of its direct | ||||||
18 | general obligations on the
date of such investment;
| ||||||
19 | (c) The bonds, stock or notes, and interest thereon | ||||||
20 | shall be payable
in currency of the United States;
| ||||||
21 | (d) The bonds shall (1) contain an option for the | ||||||
22 | redemption thereof
after 90 days from date of purchase or | ||||||
23 | (2) either become due 5 years from
the date of their | ||||||
24 | purchase or be subject to redemption 120 days after the
| ||||||
25 | date of notice for redemption;
| ||||||
26 | (e) The investment in these obligations has been |
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| |||||||
1 | approved in writing
by investment counsel employed by the | ||||||
2 | board, which counsel shall be a
national or state bank or | ||||||
3 | trust company authorized to do a trust
business in the | ||||||
4 | State of Illinois, or an investment advisor qualified
under | ||||||
5 | the Federal Investment Advisors Act of 1940 and registered | ||||||
6 | under
the Illinois Securities Act of 1953;
| ||||||
7 | (f) The fund or system making the investment shall have | ||||||
8 | at least
$5,000,000 of net present assets.
| ||||||
9 | (6) Notes secured by mortgages under Sections 203, 207, 220 | ||||||
10 | and 221 of
the National Housing Act which are insured by the | ||||||
11 | Federal Housing Commissioner,
or his successor assigns, or | ||||||
12 | debentures issued by such Commissioner, which
are guaranteed as | ||||||
13 | to principal and interest by the Federal Housing
| ||||||
14 | Administration, or agency of the United States Government, | ||||||
15 | provided the
aggregate investment shall not exceed 20% of the | ||||||
16 | total investment account
of the board at book value, and | ||||||
17 | provided further that the investment in
such notes under | ||||||
18 | Sections 220 and 221 shall in no event exceed one-half of
the | ||||||
19 | maximum investment in notes under this paragraph.
| ||||||
20 | (7) Loans to veterans guaranteed in whole or part by the | ||||||
21 | United
States Government pursuant to Title III of the Act of | ||||||
22 | Congress known as
the "Servicemen's Readjustment Act of 1944," | ||||||
23 | 58 Stat. 284, 38 U.S.C.
693, as amended or supplemented from | ||||||
24 | time to time, provided such
guaranteed loans are liens upon | ||||||
25 | real estate.
| ||||||
26 | (8) Common and preferred stocks and convertible debt |
| |||||||
| |||||||
1 | securities
authorized for investment of trust funds under the | ||||||
2 | laws of the State of
Illinois, provided:
| ||||||
3 | (a) the common stocks, except as provided in | ||||||
4 | subparagraph (g), are
listed on a national securities | ||||||
5 | exchange or board of trade, as defined in the
federal | ||||||
6 | Securities Exchange Act of 1934, or quoted in the National | ||||||
7 | Association
of Securities Dealers Automated Quotation | ||||||
8 | System (NASDAQ);
| ||||||
9 | (b) the securities are of a corporation created or | ||||||
10 | existing under
the laws of the United States or any state, | ||||||
11 | district or territory thereof,
except that up to 5% of the | ||||||
12 | assets of a pension fund established under Article
9 of | ||||||
13 | this Code may be invested in securities issued by | ||||||
14 | corporations created or
existing under the laws of a | ||||||
15 | foreign country, if those securities are otherwise
in | ||||||
16 | conformance with this paragraph (8);
| ||||||
17 | (c) the corporation is not in arrears on payment of | ||||||
18 | dividends on its
preferred stock;
| ||||||
19 | (d) the total book value of all stocks and convertible | ||||||
20 | debt owned by any
pension fund or retirement system shall | ||||||
21 | not exceed 40% of the aggregate
book value of all | ||||||
22 | investments of such pension fund or retirement system,
| ||||||
23 | except for a pension fund or retirement system governed by | ||||||
24 | Article
9 or 17, where the total of all stocks and | ||||||
25 | convertible debt shall
not exceed 50% of the aggregate book | ||||||
26 | value of all fund investments, and
except for a pension |
| |||||||
| |||||||
1 | fund or retirement system governed by Article 13,
where the | ||||||
2 | total market value of all stocks and convertible debt shall | ||||||
3 | not
exceed 75%
65% of the aggregate market value of all | ||||||
4 | fund investments;
| ||||||
5 | (e) the book value of stock and convertible debt | ||||||
6 | investments in any
one corporation shall not exceed 5% of | ||||||
7 | the total investment account at book
value in which such | ||||||
8 | securities are held, determined as of the date of the
| ||||||
9 | investment, and the investments in the stock of any one | ||||||
10 | corporation shall
not exceed 5% of the total outstanding | ||||||
11 | stock of such corporation, and the
investments in the | ||||||
12 | convertible debt of any one corporation shall not exceed
5% | ||||||
13 | of the total amount of such debt that may be outstanding;
| ||||||
14 | (f) the straight preferred stocks or convertible | ||||||
15 | preferred
stocks and convertible debt securities are | ||||||
16 | issued or guaranteed by a
corporation whose common stock | ||||||
17 | qualifies for investment by the board;
and
| ||||||
18 | (g) that any common stocks not listed or quoted as
| ||||||
19 | provided in subdivision 8(a) above be limited to the | ||||||
20 | following
types of institutions: (a) any bank which is a | ||||||
21 | member of the Federal
Deposit Insurance Corporation having | ||||||
22 | capital funds represented by
capital stock, surplus and | ||||||
23 | undivided profits of at least $20,000,000;
(b) any life | ||||||
24 | insurance company having capital funds represented by
| ||||||
25 | capital stock, special surplus funds and unassigned | ||||||
26 | surplus totalling at
least $50,000,000; and (c) any fire or |
| |||||||
| |||||||
1 | casualty insurance company, or a
combination thereof, | ||||||
2 | having capital funds represented by capital stock,
net | ||||||
3 | surplus and voluntary reserves of at least $50,000,000.
| ||||||
4 | (9) Withdrawable accounts of State chartered and federal | ||||||
5 | chartered
savings and loan associations insured by the Federal | ||||||
6 | Savings and Loan
Insurance Corporation; deposits or | ||||||
7 | certificates of deposit in State
and national banks insured by | ||||||
8 | the Federal Deposit Insurance Corporation;
and share accounts | ||||||
9 | or share certificate accounts in a State or federal credit
| ||||||
10 | union, the accounts of which are insured as required by the | ||||||
11 | Illinois Credit
Union Act or the Federal Credit Union Act, as | ||||||
12 | applicable.
| ||||||
13 | No bank or savings and loan association shall receive | ||||||
14 | investment funds
as permitted by this subsection (9), unless it | ||||||
15 | has complied with the
requirements established pursuant to | ||||||
16 | Section 6 of the Public Funds
Investment Act.
| ||||||
17 | (10) Trading, purchase or sale of listed options on | ||||||
18 | underlying
securities owned by the board.
| ||||||
19 | (11) Contracts and agreements supplemental thereto | ||||||
20 | providing for
investments in the general account of a life | ||||||
21 | insurance company authorized
to do business in Illinois.
| ||||||
22 | (12) Conventional mortgage pass-through securities which | ||||||
23 | are evidenced
by interests in Illinois owner-occupied | ||||||
24 | residential mortgages, having not
less than an "A" rating from | ||||||
25 | at least one national securities
rating service. Such mortgages | ||||||
26 | may have loan-to-value ratios up to 95%,
provided that any |
| |||||||
| |||||||
1 | amount over 80% is insured by private mortgage insurance.
The | ||||||
2 | pool of such mortgages shall be insured by mortgage guaranty or | ||||||
3 | equivalent
insurance, in accordance with industry standards.
| ||||||
4 | (13) Pooled or commingled funds managed by a national or | ||||||
5 | State bank
which is authorized to do a trust business in the | ||||||
6 | State of Illinois, shares
of registered investment companies as | ||||||
7 | defined in the federal Investment
Company Act of 1940 which are | ||||||
8 | registered under that Act, and
separate accounts of a life | ||||||
9 | insurance company authorized to do business
in Illinois, where | ||||||
10 | such pooled or commingled funds, shares, or separate
accounts | ||||||
11 | are comprised of common or preferred stocks, bonds, or money | ||||||
12 | market
instruments.
| ||||||
13 | (14) Pooled or commingled funds managed by a national or | ||||||
14 | state
bank which is authorized to do a trust business in the | ||||||
15 | State of Illinois,
separate accounts managed by a life | ||||||
16 | insurance company authorized to
do business in Illinois, and | ||||||
17 | commingled group trusts managed by an investment
adviser | ||||||
18 | registered under the federal Investment Advisors Act of 1940 | ||||||
19 | (15
U.S.C. 80b-1 et seq.) and under the Illinois Securities Law | ||||||
20 | of 1953, where
such pooled or commingled funds, separate | ||||||
21 | accounts or commingled group
trusts are comprised of real | ||||||
22 | estate or loans upon real estate secured by
first or second | ||||||
23 | mortgages. The total investment in such pooled or
commingled | ||||||
24 | funds, commingled group trusts and separate accounts shall not
| ||||||
25 | exceed 10% of the aggregate book value of all investments owned | ||||||
26 | by the fund.
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1 | (14.5) Investment in international equities and fixed | ||||||
2 | income may be made in corporations created or existing under | ||||||
3 | the laws of a foreign country or in such corporations through | ||||||
4 | investments in pooled or commingled funds permitted under | ||||||
5 | paragraph (13) of this Section.
| ||||||
6 | (15) Investment companies which (a) are registered as such | ||||||
7 | under the
Investment Company Act of 1940, (b) are diversified, | ||||||
8 | open-end management
investment companies and (c) invest only in | ||||||
9 | money market instruments.
| ||||||
10 | (16) Up to 10% of the assets of the fund may be invested in | ||||||
11 | investments
not included in paragraphs (1) through (15) of this | ||||||
12 | Section, provided that
such investments comply with the | ||||||
13 | requirements and restrictions set forth in
Sections 1-109, | ||||||
14 | 1-109.1, 1-109.2, 1-110 and 1-111 of this Code.
| ||||||
15 | The board shall have the authority to enter into such | ||||||
16 | agreements and to
execute such documents as it determines to be | ||||||
17 | necessary to complete any
investment transaction.
| ||||||
18 | Any limitations herein set forth shall be applicable only | ||||||
19 | at the time
of purchase and shall not require the liquidation | ||||||
20 | of any investment at
any time.
| ||||||
21 | All investments shall be clearly held and accounted for to | ||||||
22 | indicate
ownership by such board. Such board may direct the | ||||||
23 | registration of
securities in its own name or in the name of a | ||||||
24 | nominee created for the
express purpose of registration of | ||||||
25 | securities by a national or state
bank or trust company | ||||||
26 | authorized to conduct a trust business
in the State of |
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| |||||||
1 | Illinois.
| ||||||
2 | Investments shall be carried at cost or at a value | ||||||
3 | determined in accordance
with
generally accepted accounting | ||||||
4 | principles and accounting procedures
approved by such board.
| ||||||
5 | (Source: P.A. 92-53, eff. 7-12-01.)
| ||||||
6 | (40 ILCS 5/13-215) (from Ch. 108 1/2, par. 13-215)
| ||||||
7 | Sec. 13-215. "Retirement annuity": A benefit payable as an | ||||||
8 | annuity for
service as an employee. The annuity shall be | ||||||
9 | payable in equal monthly
installments for life, except as | ||||||
10 | otherwise provided in this Article,
beginning in the
one month | ||||||
11 | after the effective date of the annuity as fixed by the
Board , | ||||||
12 | which shall not be prior to the date of withdrawal nor more | ||||||
13 | than one
year prior to the date of the employee's application | ||||||
14 | for the annuity. A
pro rata amount of the annuity shall be paid | ||||||
15 | for part of a month when the
annuity begins after the first day | ||||||
16 | of the month or ends before
the last day of the month.
| ||||||
17 | Notwithstanding the above, all retirement annuity payments | ||||||
18 | first payable on or after January 1, 2008, shall begin the | ||||||
19 | first of the month following the effective date of retirement.
| ||||||
20 | Effective January 1, 2008, benefits are payable for the | ||||||
21 | full month if the annuitant was alive on the first day of the | ||||||
22 | month.
| ||||||
23 | (Source: P.A. 87-794.)
| ||||||
24 | (40 ILCS 5/13-216) (from Ch. 108 1/2, par. 13-216)
|
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| |||||||
1 | Sec. 13-216. "Surviving spouse's annuity": The amount | ||||||
2 | payable as a
surviving spouse annuity commencing on the date of | ||||||
3 | the employee's or
retiree's death. The annuity shall be payable | ||||||
4 | in equal monthly
installments for life, except as otherwise | ||||||
5 | provided in this Article,
in the month after the effective date | ||||||
6 | of the annuity
beginning one month after the effective date of | ||||||
7 | the annuity . A pro rata
amount of the annuity shall be paid for | ||||||
8 | part of a month when the annuity
begins after the first day of | ||||||
9 | the month or ends before the last day of
the month.
| ||||||
10 | Notwithstanding the above, all surviving spouse annuity | ||||||
11 | payments first payable on or after January 1, 2008, shall begin | ||||||
12 | the first of the month following the employee's or annuitant's | ||||||
13 | date of death.
| ||||||
14 | Effective January 1, 2008, benefits are payable for the | ||||||
15 | full month if the annuitant was alive on the first day of the | ||||||
16 | month.
| ||||||
17 | (Source: P.A. 87-794.)
| ||||||
18 | (40 ILCS 5/13-309) (from Ch. 108 1/2, par. 13-309)
| ||||||
19 | Sec. 13-309. Duty disability benefit.
| ||||||
20 | (a) Any employee who becomes disabled, which disability is | ||||||
21 | the result of an
injury or illness compensable under the | ||||||
22 | Illinois Workers' Compensation Act or
the Illinois Workers' | ||||||
23 | Occupational Diseases Act, is entitled to a duty
disability | ||||||
24 | benefit during the period of disability for which the employee | ||||||
25 | does
not receive any part of salary, or any part of a |
| |||||||
| |||||||
1 | retirement annuity under this
Article; except that in the case | ||||||
2 | of an employee who first enters service on or
after June 13, | ||||||
3 | 1997 and becomes disabled before the effective date of this | ||||||
4 | amendatory Act of the 94th General Assembly, a duty disability
| ||||||
5 | benefit is not payable for the first 3 days of disability that | ||||||
6 | would otherwise
be payable under this Section if the disability | ||||||
7 | does not continue for at least
11 additional days. The changes | ||||||
8 | made to this Section by this amendatory Act of the 94th General | ||||||
9 | Assembly are prospective only and do not entitle an employee to | ||||||
10 | a duty disability benefit for the first 3 days of any | ||||||
11 | disability that occurred before that effective date and did not | ||||||
12 | continue for at least 11 additional days. This benefit shall be | ||||||
13 | 75% of salary at the date disability
begins. However, if the | ||||||
14 | disability in any measure resulted from any physical
defect or | ||||||
15 | disease which existed at the time such injury was sustained or | ||||||
16 | such
illness commenced, the duty disability benefit shall be | ||||||
17 | 50% of salary.
| ||||||
18 | Unless the employer acknowledges that the disability is a | ||||||
19 | result of
injury or illness compensable under the Workers' | ||||||
20 | Compensation Act or the
Workers' Occupational Diseases Act, the | ||||||
21 | duty disability benefit shall
not be payable until the issue of | ||||||
22 | compensability under those Acts is finally
adjudicated. The | ||||||
23 | period of disability shall be as determined by the Illinois
| ||||||
24 | Workers' Compensation Commission or acknowledged by the | ||||||
25 | employer.
| ||||||
26 | An employee in service before June 13, 1997 shall also |
| |||||||
| |||||||
1 | receive a child's disability
benefit during the period of | ||||||
2 | disability of $10 per month for each
unmarried natural or | ||||||
3 | adopted child of the employee under
18 years of age.
| ||||||
4 | The first payment shall be made not later than one month | ||||||
5 | after the
benefit is granted, and subsequent payments shall be | ||||||
6 | made at least monthly.
The Board shall by rule prescribe for | ||||||
7 | the payment of such benefits on the
basis of the amount of | ||||||
8 | salary lost during the period of disability.
| ||||||
9 | (b) The benefit shall be allowed only if the following | ||||||
10 | requirements are
met by the employee:
| ||||||
11 | (1) Application is made to the Board within 90 days | ||||||
12 | from the date
disability begins;
| ||||||
13 | (2) A medical report is submitted by at least one | ||||||
14 | licensed and
practicing physician as part of the employee's | ||||||
15 | application; and
| ||||||
16 | (3) The employee is examined by at least one licensed | ||||||
17 | and practicing
physician appointed by the Board and found | ||||||
18 | to be in a disabled physical
condition, and shall be | ||||||
19 | re-examined at least annually thereafter during the
| ||||||
20 | continuance of disability. The employee need not be | ||||||
21 | re-examined by a
licensed and practicing physician if the | ||||||
22 | attorney for the district
certifies in writing that the | ||||||
23 | employee is entitled to receive compensation
under the | ||||||
24 | Workers' Compensation Act or the Workers' Occupational | ||||||
25 | Diseases Act.
| ||||||
26 | (c) The benefit shall terminate when:
|
| |||||||
| |||||||
1 | (1) The employee returns to work or receives a | ||||||
2 | retirement annuity paid
wholly or in part under this | ||||||
3 | Article;
| ||||||
4 | (2) The disability ceases;
| ||||||
5 | (3) The employee attains age 65, but if the employee | ||||||
6 | becomes disabled at
age 60 or later, benefits may be | ||||||
7 | extended for a period of no
more than 5 years after
| ||||||
8 | disablement;
| ||||||
9 | (4) The employee (i) refuses to submit to reasonable | ||||||
10 | examinations by
physicians or other health professionals | ||||||
11 | appointed by the Board, (ii) fails
or refuses to consent to | ||||||
12 | and sign an authorization allowing the Board to
receive | ||||||
13 | copies of or to examine the employee's medical and hospital | ||||||
14 | records,
or (iii) fails or refuses to provide complete | ||||||
15 | information regarding any other
employment for | ||||||
16 | compensation he or she has received since becoming | ||||||
17 | disabled;
or
| ||||||
18 | (5) The employee willfully and continuously refuses to | ||||||
19 | follow medical advice and treatment to enable the employee | ||||||
20 | to return to
work. However this provision does not apply to | ||||||
21 | an employee who relies in good
faith on treatment by prayer | ||||||
22 | through spiritual means alone in accordance with
the tenets | ||||||
23 | and practice of a recognized church or religious | ||||||
24 | denomination, by a
duly accredited practitioner thereof.
| ||||||
25 | In the case of a duty disability recipient who returns to | ||||||
26 | work, the employee
must make application to the Retirement |
| |||||||
| |||||||
1 | Board within 2 years from the date the
employee last received | ||||||
2 | duty disability benefits in order to become again
entitled to | ||||||
3 | duty disability benefits based on the injury for which a duty
| ||||||
4 | disability benefit was theretofore paid.
| ||||||
5 | (Source: P.A. 93-721, eff. 1-1-05; 94-621, eff. 8-18-05.)
| ||||||
6 | (40 ILCS 5/13-502) (from Ch. 108 1/2, par. 13-502)
| ||||||
7 | Sec. 13-502. Employee contributions; deductions from | ||||||
8 | salary.
| ||||||
9 | (a) Retirement annuity and child's annuity. There shall be | ||||||
10 | deducted
from each payment of salary an amount equal to 7%
7 | ||||||
11 | 1/2% of salary as the
employee's contribution for the | ||||||
12 | retirement annuity, including annual
increases therefore and
| ||||||
13 | child's annuity , and 0.5% of salary as the employee's | ||||||
14 | contribution for annual increases to the retirement annuity .
| ||||||
15 | (b) Surviving spouse's annuity. There shall be deducted | ||||||
16 | from each
payment of salary an amount equal to 1 1/2% of salary | ||||||
17 | as the employee's
contribution for the surviving spouse's | ||||||
18 | annuity and annual increases therefor.
| ||||||
19 | (c) Pickup of employee contributions. The Employer may pick | ||||||
20 | up employee
contributions required under subsections (a) and | ||||||
21 | (b) of this Section. If
contributions are picked up they shall | ||||||
22 | be treated as Employer contributions
in determining tax | ||||||
23 | treatment under the United States Internal Revenue Code,
and | ||||||
24 | shall not be included as gross income of the employee until | ||||||
25 | such time
as they are distributed. The Employer shall pay these |
| |||||||
| |||||||
1 | employee
contributions from the same source of funds used in | ||||||
2 | paying salary to the
employee. The Employer may pick up these | ||||||
3 | contributions by a reduction in
the cash salary of the employee | ||||||
4 | or by an offset against a future salary
increase or by a | ||||||
5 | combination of a reduction in salary and offset against a
| ||||||
6 | future salary increase. If employee contributions are picked up | ||||||
7 | they shall be
treated for all purposes of this Article 13, | ||||||
8 | including Sections 13-503 and
13-601, in the same manner and to | ||||||
9 | the same extent as employee contributions
made prior to the | ||||||
10 | date picked up.
| ||||||
11 | (d) Subject to the requirements of federal law, the | ||||||
12 | Employer shall
pick up optional contributions that the employee | ||||||
13 | has elected to pay to the
Fund under Section 13-304.1, and the | ||||||
14 | contributions so picked up
shall be treated as employer | ||||||
15 | contributions for the purposes of determining
federal tax | ||||||
16 | treatment. The Employer shall pick up the contributions by a
| ||||||
17 | reduction in the cash salary of the employee and shall pay the | ||||||
18 | contributions
from the same fund that is used to pay earnings | ||||||
19 | to the employee. The Employer
shall, however, continue to | ||||||
20 | withhold federal and State income taxes based upon
| ||||||
21 | contributions made under Section 13-304.1 until the Internal | ||||||
22 | Revenue Service or
the federal courts rule that pursuant to | ||||||
23 | Section 414(h) of the U.S. Internal
Revenue Code of 1986, as | ||||||
24 | amended, these contributions shall not be included as
gross | ||||||
25 | income of the employee until such time as they are distributed | ||||||
26 | or made
available.
|
| |||||||
| |||||||
1 | (e) Each employee is deemed to consent and agree to the | ||||||
2 | deductions from
compensation provided for in this Article.
| ||||||
3 | (f) Subject to the requirements of federal law, the | ||||||
4 | Employer shall pick up
contributions that a commissioner has | ||||||
5 | elected to pay to the Fund under Section
13-314, and the | ||||||
6 | contributions so picked up shall be treated as Employer
| ||||||
7 | contributions for the purposes of determining federal tax | ||||||
8 | treatment. The
Employer shall pick up the contributions by a | ||||||
9 | reduction in the cash salary of
the commissioner and shall pay | ||||||
10 | the contributions from the same fund as is
used to pay earnings | ||||||
11 | to the commissioner. The Employer shall, however,
continue to | ||||||
12 | withhold federal and State income taxes based upon | ||||||
13 | contributions
made under Section 13-314 until the U.S. Internal | ||||||
14 | Revenue Service or the
federal courts rule that pursuant to | ||||||
15 | Section 414(h) of the Internal Revenue
Code of 1986, as | ||||||
16 | amended, these contributions shall not be included as gross
| ||||||
17 | income of the employee until such time as they are distributed | ||||||
18 | or made
available.
| ||||||
19 | (Source: P.A. 94-621, eff. 8-18-05.)
| ||||||
20 | (40 ILCS 5/13-601) (from Ch. 108 1/2, par. 13-601)
| ||||||
21 | Sec. 13-601. Refunds.
| ||||||
22 | (a) Withdrawal from service. Upon withdrawal from service, | ||||||
23 | an employee
under age 55 (age 50 if the employee first entered | ||||||
24 | service before June
13, 1997), or an employee age 55 (age 50 if | ||||||
25 | the employee first entered
service before June 13, 1997) or |
| |||||||
| |||||||
1 | over but less than 60 having less
than 20 years of service, or | ||||||
2 | an employee age 60 or over having less than 5
years of service | ||||||
3 | shall be entitled, upon application, to a refund of total
| ||||||
4 | contributions from salary deductions or amounts otherwise paid | ||||||
5 | under this
Article by the employee. The refund shall not | ||||||
6 | include interest credited to
the contributions. The Board may, | ||||||
7 | in its discretion, withhold payment of a
refund for a period | ||||||
8 | not to exceed one year from the date of filing an
application | ||||||
9 | for refund.
| ||||||
10 | (b) Surviving spouse's annuity contributions. A refund of | ||||||
11 | all amounts
deducted from salary or otherwise contributed by an | ||||||
12 | employee for the
surviving spouse's annuity shall be paid upon | ||||||
13 | retirement to any employee
who on the date of retirement is | ||||||
14 | either not married or is married but whose
spouse is not | ||||||
15 | eligible for a surviving spouse's annuity paid wholly or in
| ||||||
16 | part under this Article. The refund shall include interest on
| ||||||
17 | each contribution at the rate of 3% per annum compounded | ||||||
18 | annually from the
date of the contribution to the date of the | ||||||
19 | refund.
| ||||||
20 | (c) Payment of Refunds After Death. Whenever any refund is | ||||||
21 | payable after the death of the annuitant as provided for in | ||||||
22 | this Article, the refund shall be paid as follows: to the | ||||||
23 | employee's surviving spouse, but if there is no surviving | ||||||
24 | spouse then in accordance with the employee's written | ||||||
25 | designation of beneficiary filed with the Board on the | ||||||
26 | prescribed form before the employee's death. If there is no |
| |||||||
| |||||||
1 | such designation of beneficiary, then to the employee's | ||||||
2 | surviving children in equal parts to each. If there are no such | ||||||
3 | children, the refund shall be paid to the heirs of the employee | ||||||
4 | according to the law of descent and distribution of the State | ||||||
5 | of Illinois.
When paid to children, estate or beneficiary. | ||||||
6 | Whenever the total
accumulations, to the account of an employee | ||||||
7 | from employee contributions,
including interest to the | ||||||
8 | employee's date of withdrawal, have not been paid to the | ||||||
9 | employee and surviving spouse
as a retirement or spouse's | ||||||
10 | annuity before the death of the survivor of the
employee and | ||||||
11 | spouse, a refund shall be paid as follows: an amount equal to
| ||||||
12 | the excess of such amounts over the amounts paid on such | ||||||
13 | annuities without
interest on either such amount, shall be paid | ||||||
14 | to the children of the
employee, in equal parts to each, unless | ||||||
15 | the employee has directed in
writing, signed by him before an | ||||||
16 | officer authorized to administer oaths,
and filed with the | ||||||
17 | Board before the employee's death, that any such amount
shall | ||||||
18 | be refunded and paid to any one or more of such children; and | ||||||
19 | if
there are not children, such other beneficiary or | ||||||
20 | beneficiaries as might be
designated by the employee. If there | ||||||
21 | are no such children or designation
of beneficiary, the refund | ||||||
22 | shall be paid to the personal representative of
the employee's | ||||||
23 | estate.
| ||||||
24 | If a personal representative of the estate has not been | ||||||
25 | appointed within
90 days from the date on which a refund became | ||||||
26 | payable, the refund may be
applied, in the discretion of the |
| |||||||
| |||||||
1 | Board, toward the payment of the
employee's or the surviving | ||||||
2 | spouse's burial expenses. Any remaining
balance shall be paid | ||||||
3 | to the heirs of the employee according to the law of
descent | ||||||
4 | and distribution of the State of Illinois.
| ||||||
5 | Whenever the total accumulations to the account of an | ||||||
6 | employee from employee contributions other than the | ||||||
7 | contribution for the cost of living increase, including | ||||||
8 | interest to the employee's date of withdrawal, have not been | ||||||
9 | paid to the employee and surviving spouse as a retirement or | ||||||
10 | spouse's annuity before the death of the employee and spouse, a | ||||||
11 | refund shall be paid as follows: an amount equal to the excess | ||||||
12 | of such amounts over the amounts paid on such annuities without | ||||||
13 | interest on either such amount.
| ||||||
14 | If a reversionary annuity becomes payable under Section | ||||||
15 | 13-303, the
refund provided in this section shall not be paid | ||||||
16 | until the death of the
reversionary annuitant and the refund | ||||||
17 | otherwise payable under this section
shall be then further | ||||||
18 | reduced by the amount of the reversionary annuity paid.
| ||||||
19 | (d) In lieu of annuity. Notwithstanding the provisions set | ||||||
20 | forth in
subsection (a) of this section, whenever an employee's | ||||||
21 | or surviving
spouse's annuity will be less than $200 per month, | ||||||
22 | the employee or
surviving spouse, as the case may be, may elect | ||||||
23 | to receive a refund of
accumulated employee contributions; | ||||||
24 | provided, however, that if the election
is made by a surviving | ||||||
25 | spouse the refund shall be reduced by any amounts
theretofore | ||||||
26 | paid to the employee in the form of an annuity.
|
| |||||||
| |||||||
1 | (e) Forfeiture of rights. An employee or surviving spouse | ||||||
2 | who receives
a refund forfeits the right to receive an annuity | ||||||
3 | or any other benefit
payable under this Article except that if | ||||||
4 | the refund is to a surviving
spouse, any child or children of | ||||||
5 | the employee shall not be deprived of the
right to receive a | ||||||
6 | child's annuity as provided in Section 13-308 of this
Article, | ||||||
7 | and the payment of a child's annuity shall not reduce the | ||||||
8 | amount
refundable to the surviving spouse.
| ||||||
9 | (Source: P.A. 94-621, eff. 8-18-05.)
| ||||||
10 | (40 ILCS 5/13-706) (from Ch. 108 1/2, par. 13-706)
| ||||||
11 | Sec. 13-706. Board powers and duties. The Board shall have | ||||||
12 | the powers and
duties set forth in this Section, in addition to | ||||||
13 | such other powers and
duties as may be provided in this Article | ||||||
14 | and in this Code:
| ||||||
15 | (a) To supervise collections. To see that all amounts | ||||||
16 | specified in this
Article to be applied to the Fund, from | ||||||
17 | any source, are collected and applied.
| ||||||
18 | (b) To notify of deductions. To notify the Clerk of the | ||||||
19 | Water
Reclamation District of the deductions to be made | ||||||
20 | from the salaries of
employees.
| ||||||
21 | (c) To accept gifts. To accept by gift, grant, bequest | ||||||
22 | or otherwise any
money or property of any kind and use the | ||||||
23 | same for the purposes of the Fund.
| ||||||
24 | (d) To invest the reserves. To invest the reserves of | ||||||
25 | the Fund in
accordance with the provisions set forth in |
| |||||||
| |||||||
1 | Section 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and | ||||||
2 | 1-115 of this Code. Investment made in Section 1-113 of | ||||||
3 | Article 1 of
this Code shall be deemed prudent . The Board | ||||||
4 | is also authorized to transfer securities to the
Illinois | ||||||
5 | State Board of Investment for the purpose of participation | ||||||
6 | in any
commingled investment fund as provided in Article | ||||||
7 | 22A of this Code.
| ||||||
8 | (e) To authorize payments. To consider and pass upon | ||||||
9 | all applications
for annuities and benefits; to authorize | ||||||
10 | or suspend the payment of any
annuity or benefit; to | ||||||
11 | inquire into the validity and legality of any grant
of | ||||||
12 | annuity or benefit paid from or payable out of the Fund; to | ||||||
13 | increase,
reduce, or suspend any such annuity or benefit | ||||||
14 | whenever the annuity or
benefit, or any part thereof, was | ||||||
15 | secured or granted, or the amount thereof
fixed, as the | ||||||
16 | result of misrepresentation, fraud, or error. No such
| ||||||
17 | annuity or benefit shall be permanently reduced or | ||||||
18 | suspended until the
affected annuitant or beneficiary is | ||||||
19 | first notified of the proposed action
and given an | ||||||
20 | opportunity to be heard. No trustee of the Board shall vote
| ||||||
21 | upon that trustee's own personal claim for annuity, benefit | ||||||
22 | or refund, or
participate in the deliberations of the Board | ||||||
23 | as to the validity of any
such claim. The Board shall have | ||||||
24 | exclusive original jurisdiction in all
matters of claims | ||||||
25 | for annuities, benefits and refunds.
| ||||||
26 | (f) To submit an annual report. To submit a report in |
| |||||||
| |||||||
1 | July of each year
to the Board of Commissioners of the | ||||||
2 | Water Reclamation District as of the
close of business on | ||||||
3 | December 31st of the preceding year. The report shall
| ||||||
4 | include the following:
| ||||||
5 | (1) A balance sheet, showing the financial and | ||||||
6 | actuarial condition of
the Fund as of the end of the | ||||||
7 | calendar year;
| ||||||
8 | (2) A statement of receipts and disbursements | ||||||
9 | during such year;
| ||||||
10 | (3) A statement showing changes in the asset, | ||||||
11 | liability, reserve and
surplus accounts during such | ||||||
12 | year;
| ||||||
13 | (4) A detailed statement of investments as of the | ||||||
14 | end of the year; and
| ||||||
15 | (5) Any additional information as is deemed | ||||||
16 | necessary for proper
interpretation of the condition | ||||||
17 | of the Fund.
| ||||||
18 | (g) To subpoena witnesses. To compel witnesses to | ||||||
19 | attend and testify
before it upon any matter concerning the | ||||||
20 | Fund and allow witness fees not in
excess of $6 for | ||||||
21 | attendance upon any one day. The President and other
| ||||||
22 | members of the Board may administer oaths to witnesses.
| ||||||
23 | (h) To appoint employees and consultants. To appoint | ||||||
24 | such actuarial,
medical, legal, investigational, clerical | ||||||
25 | or financial employees and
consultants as are necessary, | ||||||
26 | and fix their compensation.
|
| |||||||
| |||||||
1 | (i) To make rules. To make rules and regulations | ||||||
2 | necessary for the
administration of the affairs of the | ||||||
3 | Fund.
| ||||||
4 | (j) To waive guardianship. To waive the requirement of | ||||||
5 | legal
guardianship of any minor unmarried beneficiary of | ||||||
6 | the Fund living with a
parent or grandparent, and legal | ||||||
7 | guardianship of any beneficiary under
legal disability | ||||||
8 | whose husband, wife, or parent is managing such
| ||||||
9 | beneficiary's affairs, whenever the Board deems such | ||||||
10 | waiver to be in the
best interest of the beneficiary.
| ||||||
11 | (k) To collect amounts due. To collect any amounts due | ||||||
12 | to the Fund from
any participant or beneficiary prior to | ||||||
13 | payment of any annuity, benefit or
refund.
| ||||||
14 | (l) To invoke rule of offset. To offset against any | ||||||
15 | amount payable to
an employee or to any other person such | ||||||
16 | sums as may be due to the Fund
or may have been paid by the | ||||||
17 | Fund due to misrepresentation, fraud or error.
| ||||||
18 | (m) To assess and collect interest on amounts due to | ||||||
19 | the Fund using the annual rate as shall from time to time | ||||||
20 | be determined by the Board, compounded annually from the | ||||||
21 | date of notification to the date of payment.
| ||||||
22 | (Source: P.A. 94-621, eff. 8-18-05.)
| ||||||
23 | Section 90. The State Mandates Act is amended by adding | ||||||
24 | Section 8.31 as follows: |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | (30 ILCS 805/8.31 new) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | of this Act, no reimbursement by the State is required for the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | implementation of any mandate created by this amendatory Act of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | the 95th General Assembly.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | Section 99. Effective date. This Act takes effect upon | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | becoming law.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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