SB2362 EngrossedLRB099 17070 RPS 41428 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 7-139, 7-139.2, 7-142.1, 7-145.1, 7-169, 14-123,
614-123.1, 14-124, 14-125, 14-127, 15-158.2, 18-125, 18-126.1,
718-128.01, and 18-133 as follows:
 
8    (40 ILCS 5/7-139)  (from Ch. 108 1/2, par. 7-139)
9    (Text of Section WITHOUT the changes made by P.A. 98-599,
10which has been held unconstitutional)
11    Sec. 7-139. Credits and creditable service to employees.
12    (a) Each participating employee shall be granted credits
13and creditable service, for purposes of determining the amount
14of any annuity or benefit to which he or a beneficiary is
15entitled, as follows:
16        1. For prior service: Each participating employee who
17    is an employee of a participating municipality or
18    participating instrumentality on the effective date shall
19    be granted creditable service, but no credits under
20    paragraph 2 of this subsection (a), for periods of prior
21    service for which credit has not been received under any
22    other pension fund or retirement system established under
23    this Code, as follows:

 

 

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1        If the effective date of participation for the
2    participating municipality or participating
3    instrumentality is on or before January 1, 1998, creditable
4    service shall be granted for the entire period of prior
5    service with that employer without any employee
6    contribution.
7        If the effective date of participation for the
8    participating municipality or participating
9    instrumentality is after January 1, 1998, creditable
10    service shall be granted for the last 20% of the period of
11    prior service with that employer, but no more than 5 years,
12    without any employee contribution. A participating
13    employee may establish creditable service for the
14    remainder of the period of prior service with that employer
15    by making an application in writing, accompanied by payment
16    of an employee contribution in an amount determined by the
17    Fund, based on the employee contribution rates in effect at
18    the time of application for the creditable service and the
19    employee's salary rate on the effective date of
20    participation for that employer, plus interest at the
21    effective rate from the date of the prior service to the
22    date of payment. Application for this creditable service
23    may be made at any time while the employee is still in
24    service.
25        A municipality that (i) has at least 35 employees; (ii)
26    is located in a county with at least 2,000,000 inhabitants;

 

 

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1    and (iii) maintains an independent defined benefit pension
2    plan for the benefit of its eligible employees may restrict
3    creditable service in whole or in part for periods of prior
4    service with the employer if the governing body of the
5    municipality adopts an irrevocable resolution to restrict
6    that creditable service and files the resolution with the
7    board before the municipality's effective date of
8    participation.
9        Any person who has withdrawn from the service of a
10    participating municipality or participating
11    instrumentality prior to the effective date, who reenters
12    the service of the same municipality or participating
13    instrumentality after the effective date and becomes a
14    participating employee is entitled to creditable service
15    for prior service as otherwise provided in this subdivision
16    (a)(1) only if he or she renders 2 years of service as a
17    participating employee after the effective date.
18    Application for such service must be made while in a
19    participating status. The salary rate to be used in the
20    calculation of the required employee contribution, if any,
21    shall be the employee's salary rate at the time of first
22    reentering service with the employer after the employer's
23    effective date of participation.
24        2. For current service, each participating employee
25    shall be credited with:
26            a. Additional credits of amounts equal to each

 

 

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1        payment of additional contributions received from him
2        under Section 7-173, as of the date the corresponding
3        payment of earnings is payable to him.
4            b. Normal credits of amounts equal to each payment
5        of normal contributions received from him, as of the
6        date the corresponding payment of earnings is payable
7        to him, and normal contributions made for the purpose
8        of establishing out-of-state service credits as
9        permitted under the conditions set forth in paragraph 6
10        of this subsection (a).
11            c. Municipality credits in an amount equal to 1.4
12        times the normal credits, except those established by
13        out-of-state service credits, as of the date of
14        computation of any benefit if these credits would
15        increase the benefit.
16            d. Survivor credits equal to each payment of
17        survivor contributions received from the participating
18        employee as of the date the corresponding payment of
19        earnings is payable, and survivor contributions made
20        for the purpose of establishing out-of-state service
21        credits.
22        3. For periods of temporary and total and permanent
23    disability benefits, each employee receiving disability
24    benefits shall be granted creditable service for the period
25    during which disability benefits are payable. Normal and
26    survivor credits, based upon the rate of earnings applied

 

 

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1    for disability benefits, shall also be granted if such
2    credits would result in a higher benefit to any such
3    employee or his beneficiary.
4        4. For authorized leave of absence without pay: A
5    participating employee shall be granted credits and
6    creditable service for periods of authorized leave of
7    absence without pay under the following conditions:
8            a. An application for credits and creditable
9        service is submitted to the board while the employee is
10        in a status of active employment.
11            b. Not more than 12 complete months of creditable
12        service for authorized leave of absence without pay
13        shall be counted for purposes of determining any
14        benefits payable under this Article.
15            c. Credits and creditable service shall be granted
16        for leave of absence only if such leave is approved by
17        the governing body of the municipality, including
18        approval of the estimated cost thereof to the
19        municipality as determined by the fund, and employee
20        contributions, plus interest at the effective rate
21        applicable for each year from the end of the period of
22        leave to date of payment, have been paid to the fund in
23        accordance with Section 7-173. The contributions shall
24        be computed upon the assumption earnings continued
25        during the period of leave at the rate in effect when
26        the leave began.

 

 

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1            d. Benefits under the provisions of Sections
2        7-141, 7-146, 7-150 and 7-163 shall become payable to
3        employees on authorized leave of absence, or their
4        designated beneficiary, only if such leave of absence
5        is creditable hereunder, and if the employee has at
6        least one year of creditable service other than the
7        service granted for leave of absence. Any employee
8        contributions due may be deducted from any benefits
9        payable.
10            e. No credits or creditable service shall be
11        allowed for leave of absence without pay during any
12        period of prior service.
13        5. For military service: The governing body of a
14    municipality or participating instrumentality may elect to
15    allow creditable service to participating employees who
16    leave their employment to serve in the armed forces of the
17    United States for all periods of such service, provided
18    that the person returns to active employment within 90 days
19    after completion of full time active duty, but no
20    creditable service shall be allowed such person for any
21    period that can be used in the computation of a pension or
22    any other pay or benefit, other than pay for active duty,
23    for service in any branch of the armed forces of the United
24    States. If necessary to the computation of any benefit, the
25    board shall establish municipality credits for
26    participating employees under this paragraph on the

 

 

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1    assumption that the employee received earnings at the rate
2    received at the time he left the employment to enter the
3    armed forces. A participating employee in the armed forces
4    shall not be considered an employee during such period of
5    service and no additional death and no disability benefits
6    are payable for death or disability during such period.
7        Any participating employee who left his employment
8    with a municipality or participating instrumentality to
9    serve in the armed forces of the United States and who
10    again became a participating employee within 90 days after
11    completion of full time active duty by entering the service
12    of a different municipality or participating
13    instrumentality, which has elected to allow creditable
14    service for periods of military service under the preceding
15    paragraph, shall also be allowed creditable service for his
16    period of military service on the same terms that would
17    apply if he had been employed, before entering military
18    service, by the municipality or instrumentality which
19    employed him after he left the military service and the
20    employer costs arising in relation to such grant of
21    creditable service shall be charged to and paid by that
22    municipality or instrumentality.
23        Notwithstanding the foregoing, any participating
24    employee shall be entitled to creditable service as
25    required by any federal law relating to re-employment
26    rights of persons who served in the United States Armed

 

 

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1    Services. Such creditable service shall be granted upon
2    payment by the member of an amount equal to the employee
3    contributions which would have been required had the
4    employee continued in service at the same rate of earnings
5    during the military leave period, plus interest at the
6    effective rate.
7        5.1. In addition to any creditable service established
8    under paragraph 5 of this subsection (a), creditable
9    service may be granted for up to 48 months of service in
10    the armed forces of the United States.
11        In order to receive creditable service for military
12    service under this paragraph 5.1, a participating employee
13    must (1) apply to the Fund in writing and provide evidence
14    of the military service that is satisfactory to the Board;
15    (2) obtain the written approval of the current employer;
16    and (3) make contributions to the Fund equal to (i) the
17    employee contributions that would have been required had
18    the service been rendered as a member, plus (ii) an amount
19    determined by the board to be equal to the employer's
20    normal cost of the benefits accrued for that military
21    service, plus (iii) interest on items (i) and (ii) from the
22    date of first membership in the Fund to the date of
23    payment. The required interest shall be calculated at the
24    regular interest rate.
25        The changes made to this paragraph 5.1 by Public Acts
26    95-483 and 95-486 apply only to participating employees in

 

 

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1    service on or after August 28, 2007 (the effective date of
2    those Public Acts).
3        6. For out-of-state service: Creditable service shall
4    be granted for service rendered to an out-of-state local
5    governmental body under the following conditions: The
6    employee had participated and has irrevocably forfeited
7    all rights to benefits in the out-of-state public employees
8    pension system; the governing body of his participating
9    municipality or instrumentality authorizes the employee to
10    establish such service; the employee has 2 years current
11    service with this municipality or participating
12    instrumentality; the employee makes a payment of
13    contributions, which shall be computed at 8% (normal) plus
14    2% (survivor) times length of service purchased times the
15    average rate of earnings for the first 2 years of service
16    with the municipality or participating instrumentality
17    whose governing body authorizes the service established
18    plus interest at the effective rate on the date such
19    credits are established, payable from the date the employee
20    completes the required 2 years of current service to date
21    of payment. In no case shall more than 120 months of
22    creditable service be granted under this provision.
23        7. For retroactive service: Any employee who could have
24    but did not elect to become a participating employee, or
25    who should have been a participant in the Municipal Public
26    Utilities Annuity and Benefit Fund before that fund was

 

 

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1    superseded, may receive creditable service for the period
2    of service not to exceed 50 months; however, a current or
3    former elected or appointed official of a participating
4    municipality may establish credit under this paragraph 7
5    for more than 50 months of service as an official of that
6    municipality, if the excess over 50 months is approved by
7    resolution of the governing body of the affected
8    municipality filed with the Fund before January 1, 2002.
9        Any employee who is a participating employee on or
10    after September 24, 1981 and who was excluded from
11    participation by the age restrictions removed by Public Act
12    82-596 may receive creditable service for the period, on or
13    after January 1, 1979, excluded by the age restriction and,
14    in addition, if the governing body of the participating
15    municipality or participating instrumentality elects to
16    allow creditable service for all employees excluded by the
17    age restriction prior to January 1, 1979, for service
18    during the period prior to that date excluded by the age
19    restriction. Any employee who was excluded from
20    participation by the age restriction removed by Public Act
21    82-596 and who is not a participating employee on or after
22    September 24, 1981 may receive creditable service for
23    service after January 1, 1979. Creditable service under
24    this paragraph shall be granted upon payment of the
25    employee contributions which would have been required had
26    he participated, with interest at the effective rate for

 

 

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1    each year from the end of the period of service established
2    to date of payment.
3        8. For accumulated unused sick leave: A participating
4    employee who is applying for a retirement annuity shall be
5    entitled to creditable service for that portion of the
6    employee's accumulated unused sick leave for which payment
7    is not received, as follows:
8            a. Sick leave days shall be limited to those
9        accumulated under a sick leave plan established by a
10        participating municipality or participating
11        instrumentality which is available to all employees or
12        a class of employees.
13            b. Except as provided in item b-1, only sick leave
14        days accumulated with a participating municipality or
15        participating instrumentality with which the employee
16        was in service within 60 days of the effective date of
17        his retirement annuity shall be credited; If the
18        employee was in service with more than one employer
19        during this period only the sick leave days with the
20        employer with which the employee has the greatest
21        number of unpaid sick leave days shall be considered.
22            b-1. If the employee was in the service of more
23        than one employer as defined in item (2) of paragraph
24        (a) of subsection (A) of Section 7-132, then the sick
25        leave days from all such employers shall be credited,
26        as long as the creditable service attributed to those

 

 

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1        sick leave days does not exceed the limitation in item
2        f of this paragraph 8. In calculating the creditable
3        service under this item b-1, the sick leave days from
4        the last employer shall be considered first, then the
5        remaining sick leave days shall be considered until
6        there are no more days or the maximum creditable sick
7        leave threshold under item f of this paragraph 8 has
8        been reached.
9            c. The creditable service granted shall be
10        considered solely for the purpose of computing the
11        amount of the retirement annuity and shall not be used
12        to establish any minimum service period required by any
13        provision of the Illinois Pension Code, the effective
14        date of the retirement annuity, or the final rate of
15        earnings.
16            d. The creditable service shall be at the rate of
17        1/20 of a month for each full sick day, provided that
18        no more than 12 months may be credited under this
19        subdivision 8.
20            e. Employee contributions shall not be required
21        for creditable service under this subdivision 8.
22            f. Each participating municipality and
23        participating instrumentality with which an employee
24        has service within 60 days of the effective date of his
25        retirement annuity shall certify to the board the
26        number of accumulated unpaid sick leave days credited

 

 

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1        to the employee at the time of termination of service.
2        9. For service transferred from another system:
3    Credits and creditable service shall be granted for service
4    under Article 4, 5, 8, 14, or 16 of this Act, to any active
5    member of this Fund, and to any inactive member who has
6    been a county sheriff, upon transfer of such credits
7    pursuant to Section 4-108.3, 5-235, 8-226.7, 14-105.6, or
8    16-131.4, and payment by the member of the amount by which
9    (1) the employer and employee contributions that would have
10    been required if he had participated in this Fund as a
11    sheriff's law enforcement employee during the period for
12    which credit is being transferred, plus interest thereon at
13    the effective rate for each year, compounded annually, from
14    the date of termination of the service for which credit is
15    being transferred to the date of payment, exceeds (2) the
16    amount actually transferred to the Fund. Such transferred
17    service shall be deemed to be service as a sheriff's law
18    enforcement employee for the purposes of Section 7-142.1.
19        10. (Blank).
20        11. For service transferred from an Article 3 system
21    under Section 3-110.3: Credits and creditable service
22    shall be granted for service under Article 3 of this Act as
23    provided in Section 3-110.3, to any active member of this
24    Fund, upon transfer of such credits pursuant to Section
25    3-110.3. If the board determines that the amount
26    transferred is less than the true cost to the Fund of

 

 

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1    allowing that creditable service to be established, then in
2    order to establish that creditable service, the member must
3    pay to the Fund an additional contribution equal to the
4    difference, as determined by the board in accordance with
5    the rules and procedures adopted under this paragraph. If
6    the member does not make the full additional payment as
7    required by this paragraph prior to termination of his
8    participation with that employer, then his or her
9    creditable service shall be reduced by an amount equal to
10    the difference between the amount transferred under
11    Section 3-110.3, including any payments made by the member
12    under this paragraph prior to termination, and the true
13    cost to the Fund of allowing that creditable service to be
14    established, as determined by the board in accordance with
15    the rules and procedures adopted under this paragraph.
16        The board shall establish by rule the manner of making
17    the calculation required under this paragraph 11, taking
18    into account the appropriate actuarial assumptions; the
19    member's service, age, and salary history, and any other
20    factors that the board determines to be relevant.
21        12. For omitted service: Any employee who was employed
22    by a participating employer in a position that required
23    participation, but who was not enrolled in the Fund, may
24    establish such credits under the following conditions:
25            a. Application for such credits is received by the
26        Board while the employee is an active participant of

 

 

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1        the Fund or a reciprocal retirement system.
2            b. Eligibility for participation and earnings are
3        verified by the Authorized Agent of the participating
4        employer for which the service was rendered.
5        Creditable service under this paragraph shall be
6    granted upon payment of the employee contributions that
7    would have been required had he participated, which shall
8    be calculated by the Fund using the member contribution
9    rate in effect during the period that the service was
10    rendered.
11    (b) Creditable service - amount:
12        1. One month of creditable service shall be allowed for
13    each month for which a participating employee made
14    contributions as required under Section 7-173, or for which
15    creditable service is otherwise granted hereunder. Not
16    more than 1 month of service shall be credited and counted
17    for 1 calendar month, and not more than 1 year of service
18    shall be credited and counted for any calendar year. A
19    calendar month means a nominal month beginning on the first
20    day thereof, and a calendar year means a year beginning
21    January 1 and ending December 31.
22        2. A seasonal employee shall be given 12 months of
23    creditable service if he renders the number of months of
24    service normally required by the position in a 12-month
25    period and he remains in service for the entire 12-month
26    period. Otherwise a fractional year of service in the

 

 

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1    number of months of service rendered shall be credited.
2        3. An intermittent employee shall be given creditable
3    service for only those months in which a contribution is
4    made under Section 7-173.
5    (c) No application for correction of credits or creditable
6service shall be considered unless the board receives an
7application for correction while (1) the applicant is a
8participating employee and in active employment with a
9participating municipality or instrumentality, or (2) while
10the applicant is actively participating in a pension fund or
11retirement system which is a participating system under the
12Retirement Systems Reciprocal Act. A participating employee or
13other applicant shall not be entitled to credits or creditable
14service unless the required employee contributions are made in
15a lump sum or in installments made in accordance with board
16rule. Payments made to establish service credit under paragraph
171, 4, 5, 5.1, 6, 7, or 12 of subsection (a) of this Section must
18be received by the Board while the applicant is an active
19participant in the Fund or a reciprocal retirement system,
20except that an applicant may make one payment after termination
21of active participation in the Fund or a reciprocal retirement
22system.
23    (d) Upon the granting of a retirement, surviving spouse or
24child annuity, a death benefit or a separation benefit, on
25account of any employee, all individual accumulated credits
26shall thereupon terminate. Upon the withdrawal of additional

 

 

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1contributions, the credits applicable thereto shall thereupon
2terminate. Terminated credits shall not be applied to increase
3the benefits any remaining employee would otherwise receive
4under this Article.
5(Source: P.A. 97-415, eff. 8-16-11; 98-439, eff. 8-16-13;
698-932, eff. 8-15-14.)
 
7    (40 ILCS 5/7-139.2)  (from Ch. 108 1/2, par. 7-139.2)
8    Sec. 7-139.2. Validation of service credits. An active
9member of the General Assembly having no service credits or
10creditable service in the Fund, may establish service credit
11and creditable service for periods during which he was an
12employee of a municipality in an elective office and could have
13elected to participate in the Fund but did not so elect.
14Service credits and creditable service may be established by
15payment to the Fund of an amount equal to the contributions he
16would have made if he had elected to participate plus interest
17to the date of payment, together with the applicable
18municipality credits including interest, but the total period
19of such creditable service that may be validated shall not
20exceed 8 years. Payments made to establish such service credit
21must be received by the Board while the member is an active
22participant in the General Assembly Retirement System, except
23that one payment will be permitted after the member terminates
24such service.
25(Source: P.A. 81-1536.)
 

 

 

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1    (40 ILCS 5/7-142.1)  (from Ch. 108 1/2, par. 7-142.1)
2    Sec. 7-142.1. Sheriff's law enforcement employees.
3    (a) In lieu of the retirement annuity provided by
4subparagraph 1 of paragraph (a) of Section 7-142:
5    Any sheriff's law enforcement employee who has 20 or more
6years of service in that capacity and who terminates service
7prior to January 1, 1988 shall be entitled at his option to
8receive a monthly retirement annuity for his service as a
9sheriff's law enforcement employee computed by multiplying 2%
10for each year of such service up to 10 years, 2 1/4% for each
11year of such service above 10 years and up to 20 years, and 2
121/2% for each year of such service above 20 years, by his
13annual final rate of earnings and dividing by 12.
14    Any sheriff's law enforcement employee who has 20 or more
15years of service in that capacity and who terminates service on
16or after January 1, 1988 and before July 1, 2004 shall be
17entitled at his option to receive a monthly retirement annuity
18for his service as a sheriff's law enforcement employee
19computed by multiplying 2.5% for each year of such service up
20to 20 years, 2% for each year of such service above 20 years
21and up to 30 years, and 1% for each year of such service above
2230 years, by his annual final rate of earnings and dividing by
2312.
24    Any sheriff's law enforcement employee who has 20 or more
25years of service in that capacity and who terminates service on

 

 

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1or after July 1, 2004 shall be entitled at his or her option to
2receive a monthly retirement annuity for service as a sheriff's
3law enforcement employee computed by multiplying 2.5% for each
4year of such service by his annual final rate of earnings and
5dividing by 12.
6    If a sheriff's law enforcement employee has service in any
7other capacity, his retirement annuity for service as a
8sheriff's law enforcement employee may be computed under this
9Section and the retirement annuity for his other service under
10Section 7-142.
11    In no case shall the total monthly retirement annuity for
12persons who retire before July 1, 2004 exceed 75% of the
13monthly final rate of earnings. In no case shall the total
14monthly retirement annuity for persons who retire on or after
15July 1, 2004 exceed 80% of the monthly final rate of earnings.
16    (b) Whenever continued group insurance coverage is elected
17in accordance with the provisions of Section 367h of the
18Illinois Insurance Code, as now or hereafter amended, the total
19monthly premium for such continued group insurance coverage or
20such portion thereof as is not paid by the municipality shall,
21upon request of the person electing such continued group
22insurance coverage, be deducted from any monthly pension
23benefit otherwise payable to such person pursuant to this
24Section, to be remitted by the Fund to the insurance company or
25other entity providing the group insurance coverage.
26    (c) A sheriff's law enforcement employee who began service

 

 

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1in that capacity prior to the effective date of this amendatory
2Act of the 97th General Assembly and who has service in any
3other capacity may convert up to 10 years of that service into
4service as a sheriff's law enforcement employee by paying to
5the Fund an amount equal to (1) the additional employee
6contribution required under Section 7-173.1, plus (2) the
7additional employer contribution required under Section 7-172,
8plus (3) interest on items (1) and (2) at the prescribed rate
9from the date of the service to the date of payment.
10Application must be received by the Board while the employee is
11an active participant in the Fund. Payment must be received
12while the member is an active participant, except that one
13payment will be permitted after termination of participation.
14    (d) The changes to subsections (a) and (b) of this Section
15made by this amendatory Act of the 94th General Assembly apply
16only to persons in service on or after July 1, 2004. In the
17case of such a person who begins to receive a retirement
18annuity before the effective date of this amendatory Act of the
1994th General Assembly, the annuity shall be recalculated
20prospectively to reflect those changes, with the resulting
21increase beginning to accrue on the first annuity payment date
22following the effective date of this amendatory Act.
23    (e) Any elected county officer who was entitled to receive
24a stipend from the State on or after July 1, 2009 and on or
25before June 30, 2010 may establish earnings credit for the
26amount of stipend not received, if the elected county official

 

 

SB2362 Engrossed- 21 -LRB099 17070 RPS 41428 b

1applies in writing to the fund within 6 months after the
2effective date of this amendatory Act of the 96th General
3Assembly and pays to the fund an amount equal to (i) employee
4contributions on the amount of stipend not received, (ii)
5employer contributions determined by the Board equal to the
6employer's normal cost of the benefit on the amount of stipend
7not received, plus (iii) interest on items (i) and (ii) at the
8actuarially assumed rate.
9    (f) Notwithstanding any other provision of this Article,
10the provisions of this subsection (f) apply to a person who
11first becomes a sheriff's law enforcement employee under this
12Article on or after January 1, 2011.
13    A sheriff's law enforcement employee age 55 or more who has
1410 or more years of service in that capacity shall be entitled
15at his option to receive a monthly retirement annuity for his
16or her service as a sheriff's law enforcement employee computed
17by multiplying 2.5% for each year of such service by his or her
18final rate of earnings.
19    The retirement annuity of a sheriff's law enforcement
20employee who is retiring after attaining age 50 with 10 or more
21years of creditable service shall be reduced by one-half of 1%
22for each month that the sheriff's law enforcement employee's
23age is under age 55.
24    The maximum retirement annuity under this subsection (f)
25shall be 75% of final rate of earnings.
26    For the purposes of this subsection (f), "final rate of

 

 

SB2362 Engrossed- 22 -LRB099 17070 RPS 41428 b

1earnings" means the average monthly earnings obtained by
2dividing the total salary of the sheriff's law enforcement
3employee during the 96 consecutive months of service within the
4last 120 months of service in which the total earnings was the
5highest by the number of months of service in that period.
6    Notwithstanding any other provision of this Article,
7beginning on January 1, 2011, for all purposes under this Code
8(including without limitation the calculation of benefits and
9employee contributions), the annual earnings of a sheriff's law
10enforcement employee to whom this Section applies shall not
11include overtime and shall not exceed $106,800; however, that
12amount shall annually thereafter be increased by the lesser of
13(i) 3% of that amount, including all previous adjustments, or
14(ii) one-half the annual unadjusted percentage increase (but
15not less than zero) in the consumer price index-u for the 12
16months ending with the September preceding each November 1,
17including all previous adjustments.
18    (g) Notwithstanding any other provision of this Article,
19the monthly annuity of a person who first becomes a sheriff's
20law enforcement employee under this Article on or after January
211, 2011 shall be increased on the January 1 occurring either on
22or after the attainment of age 60 or the first anniversary of
23the annuity start date, whichever is later. Each annual
24increase shall be calculated at 3% or one-half the annual
25unadjusted percentage increase (but not less than zero) in the
26consumer price index-u for the 12 months ending with the

 

 

SB2362 Engrossed- 23 -LRB099 17070 RPS 41428 b

1September preceding each November 1, whichever is less, of the
2originally granted retirement annuity. If the annual
3unadjusted percentage change in the consumer price index-u for
4a 12-month period ending in September is zero or, when compared
5with the preceding period, decreases, then the annuity shall
6not be increased.
7    (h) Notwithstanding any other provision of this Article,
8for a person who first becomes a sheriff's law enforcement
9employee under this Article on or after January 1, 2011, the
10annuity to which the surviving spouse, children, or parents are
11entitled under this subsection (h) shall be in the amount of 66
122/3% of the sheriff's law enforcement employee's earned annuity
13at the date of death.
14    (i) Notwithstanding any other provision of this Article,
15the monthly annuity of a survivor of a person who first becomes
16a sheriff's law enforcement employee under this Article on or
17after January 1, 2011 shall be increased on the January 1 after
18attainment of age 60 by the recipient of the survivor's annuity
19and each January 1 thereafter by 3% or one-half the annual
20unadjusted percentage increase in the consumer price index-u
21for the 12 months ending with the September preceding each
22November 1, whichever is less, of the originally granted
23pension. If the annual unadjusted percentage change in the
24consumer price index-u for a 12-month period ending in
25September is zero or, when compared with the preceding period,
26decreases, then the annuity shall not be increased.

 

 

SB2362 Engrossed- 24 -LRB099 17070 RPS 41428 b

1    (j) For the purposes of this Section, "consumer price
2index-u" means the index published by the Bureau of Labor
3Statistics of the United States Department of Labor that
4measures the average change in prices of goods and services
5purchased by all urban consumers, United States city average,
6all items, 1982-84 = 100. The new amount resulting from each
7annual adjustment shall be determined by the Public Pension
8Division of the Department of Insurance and made available to
9the boards of the pension funds.
10(Source: P.A. 96-961, eff. 7-2-10; 96-1495, eff. 1-1-11;
1197-272, eff. 8-8-11; 97-609, eff. 8-26-11.)
 
12    (40 ILCS 5/7-145.1)
13    Sec. 7-145.1. Alternative annuity for county officers.
14    (a) The benefits provided in this Section and Section
157-145.2 are available only if, prior to the effective date of
16this amendatory Act of the 97th General Assembly, the county
17board has filed with the Board of the Fund a resolution or
18ordinance expressly consenting to the availability of these
19benefits for its elected county officers. The county board's
20consent is irrevocable with respect to persons participating in
21the program, but may be revoked at any time with respect to
22persons who have not paid an additional optional contribution
23under this Section before the date of revocation.
24    An elected county officer may elect to establish
25alternative credits for an alternative annuity by electing in

 

 

SB2362 Engrossed- 25 -LRB099 17070 RPS 41428 b

1writing before the effective date of this amendatory Act of the
297th General Assembly to make additional optional
3contributions in accordance with this Section and procedures
4established by the board. These alternative credits are
5available only for periods of service as an elected county
6officer. The elected county officer may discontinue making the
7additional optional contributions by notifying the Fund in
8writing in accordance with this Section and procedures
9established by the board.
10    Additional optional contributions for the alternative
11annuity shall be as follows:
12        (1) For service as an elected county officer after the
13    option is elected, an additional contribution of 3% of
14    salary shall be contributed to the Fund on the same basis
15    and under the same conditions as contributions required
16    under Section 7-173.
17        (2) For service as an elected county officer before the
18    option is elected, an additional contribution of 3% of the
19    salary for the applicable period of service, plus interest
20    at the effective rate from the date of service to the date
21    of payment, plus any additional amount required by the
22    county board under paragraph (3). All payments for past
23    service must be paid in full before credit is given.
24    Payment must be received by the Board while the member is
25    an active participant, except that one payment will be
26    permitted after termination of participation.

 

 

SB2362 Engrossed- 26 -LRB099 17070 RPS 41428 b

1        (3) With respect to service as an elected county
2    officer before the option is elected, if payment is made
3    after the county board has filed with the Board of the Fund
4    a resolution or ordinance requiring an additional
5    contribution under this paragraph, then the contribution
6    required under paragraph (2) shall include an amount to be
7    determined by the Fund, equal to the actuarial present
8    value of the additional employer cost that would otherwise
9    result from the alternative credits being established for
10    that service. A county board's resolution or ordinance
11    requiring additional contributions under this paragraph
12    (3) is irrevocable. Payment must be received by the Board
13    while the member is an active participant, except that one
14    payment will be permitted after termination of
15    participation.
16    No additional optional contributions may be made for any
17period of service for which credit has been previously
18forfeited by acceptance of a refund, unless the refund is
19repaid in full with interest at the effective rate from the
20date of refund to the date of repayment.
21    (b) In lieu of the retirement annuity otherwise payable
22under this Article, an elected county officer who (1) has
23elected to participate in the Fund and make additional optional
24contributions in accordance with this Section, (2) has held and
25made additional optional contributions with respect to the same
26elected county office for at least 8 years, and (3) has

 

 

SB2362 Engrossed- 27 -LRB099 17070 RPS 41428 b

1attained age 55 with at least 8 years of service credit (or has
2attained age 50 with at least 20 years of service as a
3sheriff's law enforcement employee) may elect to have his
4retirement annuity computed as follows: 3% of the participant's
5salary for each of the first 8 years of service credit, plus 4%
6of that salary for each of the next 4 years of service credit,
7plus 5% of that salary for each year of service credit in
8excess of 12 years, subject to a maximum of 80% of that salary.
9    This formula applies only to service in an elected county
10office that the officer held for at least 8 years, and only to
11service for which additional optional contributions have been
12paid under this Section. If an elected county officer qualifies
13to have this formula applied to service in more than one
14elected county office, the qualifying service shall be
15accumulated for purposes of determining the applicable accrual
16percentages, but the salary used for each office shall be the
17separate salary calculated for that office, as defined in
18subsection (g).
19    To the extent that the elected county officer has service
20credit that does not qualify for this formula, his retirement
21annuity will first be determined in accordance with this
22formula with respect to the service to which this formula
23applies, and then in accordance with the remaining Sections of
24this Article with respect to the service to which this formula
25does not apply.
26    (c) In lieu of the disability benefits otherwise payable

 

 

SB2362 Engrossed- 28 -LRB099 17070 RPS 41428 b

1under this Article, an elected county officer who (1) has
2elected to participate in the Fund, and (2) has become
3permanently disabled and as a consequence is unable to perform
4the duties of his office, and (3) was making optional
5contributions in accordance with this Section at the time the
6disability was incurred, may elect to receive a disability
7annuity calculated in accordance with the formula in subsection
8(b). For the purposes of this subsection, an elected county
9officer shall be considered permanently disabled only if: (i)
10disability occurs while in service as an elected county officer
11and is of such a nature as to prevent him from reasonably
12performing the duties of his office at the time; and (ii) the
13board has received a written certification by at least 2
14licensed physicians appointed by it stating that the officer is
15disabled and that the disability is likely to be permanent.
16    (d) Refunds of additional optional contributions shall be
17made on the same basis and under the same conditions as
18provided under Section 7-166, 7-167 and 7-168. Interest shall
19be credited at the effective rate on the same basis and under
20the same conditions as for other contributions.
21    If an elected county officer fails to hold that same
22elected county office for at least 8 years, he or she shall be
23entitled after leaving office to receive a refund of the
24additional optional contributions made with respect to that
25office, plus interest at the effective rate.
26    (e) The plan of optional alternative benefits and

 

 

SB2362 Engrossed- 29 -LRB099 17070 RPS 41428 b

1contributions shall be available to persons who are elected
2county officers and active contributors to the Fund on or after
3November 15, 1994 and elected to establish alternative credit
4before the effective date of this amendatory Act of the 97th
5General Assembly. A person who was an elected county officer
6and an active contributor to the Fund on November 15, 1994 but
7is no longer an active contributor may apply to make additional
8optional contributions under this Section at any time within 90
9days after the effective date of this amendatory Act of 1997;
10if the person is an annuitant, the resulting increase in
11annuity shall begin to accrue on the first day of the month
12following the month in which the required payment is received
13by the Fund.
14    (f) For the purposes of this Section and Section 7-145.2,
15the terms "elected county officer" and "elected county office"
16include, but are not limited to: (1) the county clerk,
17recorder, treasurer, coroner, assessor (if elected), auditor,
18sheriff, and State's Attorney; members of the county board; and
19the clerk of the circuit court; and (2) a person who has been
20appointed to fill a vacancy in an office that is normally
21filled by election on a countywide basis, for the duration of
22his or her service in that office. The terms "elected county
23officer" and "elected county office" do not include any officer
24or office of a county that has not consented to the
25availability of benefits under this Section and Section
267-145.2.

 

 

SB2362 Engrossed- 30 -LRB099 17070 RPS 41428 b

1    (g) For the purposes of this Section and Section 7-145.2,
2the term "salary" means the final rate of earnings for the
3elected county office held, calculated in a manner consistent
4with Section 7-116, but for that office only. If an elected
5county officer qualifies to have the formula in subsection (b)
6applied to service in more than one elected county office, a
7separate salary shall be calculated and applied with respect to
8each such office.
9    (h) The changes to this Section made by this amendatory Act
10of the 91st General Assembly apply to persons who first make an
11additional optional contribution under this Section on or after
12the effective date of this amendatory Act.
13    (i) Any elected county officer who was entitled to receive
14a stipend from the State on or after July 1, 2009 and on or
15before June 30, 2010 may establish earnings credit for the
16amount of stipend not received, if the elected county official
17applies in writing to the fund within 6 months after the
18effective date of this amendatory Act of the 96th General
19Assembly and pays to the fund an amount equal to (i) employee
20contributions on the amount of stipend not received, (ii)
21employer contributions determined by the Board equal to the
22employer's normal cost of the benefit on the amount of stipend
23not received, plus (iii) interest on items (i) and (ii) at the
24actuarially assumed rate.
25(Source: P.A. 96-961, eff. 7-2-10; 97-272, eff. 8-8-11; 97-609,
26eff. 8-26-11.)
 

 

 

SB2362 Engrossed- 31 -LRB099 17070 RPS 41428 b

1    (40 ILCS 5/7-169)  (from Ch. 108 1/2, par. 7-169)
2    Sec. 7-169. Separation benefits; repayments.
3    (a) If an employee who has received a separation benefit
4subsequently becomes a participating employee, and renders at
5least 2 years of contributing service from the date of such
6re-entry, he may pay to the fund the amount of the separation
7benefit, plus interest at the effective rate for each year from
8the date of payment of the separation benefit to the date of
9repayment. Upon payment his creditable service shall be
10reinstated and the payment shall be credited to his account as
11normal contributions. Application must be received by the Board
12while the employee is an active participant in the Fund or a
13reciprocal retirement system. Payment must be received while
14the member is an active participant, except that one payment
15will be permitted after termination of participation in the
16Fund or a reciprocal retirement system.
17     (b) Beginning July 1, 2004, the requirement of returning
18to service for at least 2 years does not apply to persons who
19return to service as a sheriff's law enforcement employee. This
20subsection applies only to persons in service on or after July
211, 2004. In the case of such a person who begins to receive a
22retirement annuity before the effective date of this amendatory
23Act of the 94th General Assembly, the annuity shall be
24recalculated prospectively to reflect any credits reinstated
25as a result of this subsection, with the resulting increase in

 

 

SB2362 Engrossed- 32 -LRB099 17070 RPS 41428 b

1annuity beginning to accrue on the first annuity payment date
2following the effective date of this amendatory Act, but not
3earlier than the date the repayment is received by the Fund.
4(Source: P.A. 94-712, eff. 6-1-06.)
 
5    (40 ILCS 5/14-123)  (from Ch. 108 1/2, par. 14-123)
6    Sec. 14-123. Occupational disability benefits. A member
7who becomes incapacitated to perform the duties of his position
8as the proximate result of bodily injuries sustained or a
9hazard undergone while in the performance and within the scope
10of the member's duties, shall receive an occupational
11disability benefit; provided:
12        (a) application is made within 12 months after the date
13    that such disability results in the loss of pay, or 12
14    months after the date that the Illinois Workers'
15    Compensation Commission rules on the application for an
16    occupational disability, or 12 months after the occurrence
17    of disablement if an occupational disease; and
18        (b) proper proof is received from one or more licensed
19    healthcare practitioners physicians designated by the
20    Board certifying that the member is mentally or physically
21    incapacitated; and .
22        (c) the Board may waive the application deadline
23    requirement as prescribed under item (a) of this Section
24    and the benefit shall be payable retroactive to the date
25    that the participant attained the eligibility criteria for

 

 

SB2362 Engrossed- 33 -LRB099 17070 RPS 41428 b

1    the benefit provided by this Section.
2    The benefit shall be 75% of the member's final average
3compensation at date of disability and shall be payable until
4the first of the following dates occurs:
5        (1) the date on which disability ceases;
6        (2) the date on which the member engages in gainful
7    employment;
8        (3) the end of the month in which the member attains
9    age 65, in the case of benefits commencing prior to
10    attainment of age 60;
11        (4) the end of the month following the fifth
12    anniversary of the effective date of the benefit, or of the
13    temporary disability benefit if one was received, in the
14    case of benefits commencing on or after attainment of age
15    60; or
16        (5) the end of the month in which the death of the
17    member occurs.
18    At the end of the month in which the benefits cease as
19prescribed in paragraphs (3) or (4) above, if the member is
20still disabled, he shall become entitled to a retirement
21annuity and the minimum period of service prescribed for the
22receipt of such annuity shall be waived.
23    In the event that a temporary disability benefit has been
24received, the benefit paid under this Section shall be subject
25to adjustment by the Board under Section 14-123.1.
26    The Board shall prescribe rules and regulations governing

 

 

SB2362 Engrossed- 34 -LRB099 17070 RPS 41428 b

1the filing of claims for occupational disability benefits, and
2the investigation, control and supervision of such claims.
3(Source: P.A. 93-721, eff. 1-1-05.)
 
4    (40 ILCS 5/14-123.1)  (from Ch. 108 1/2, par. 14-123.1)
5    Sec. 14-123.1. Temporary disability benefit.
6    (a) A member who has at least 18 months of creditable
7service and who becomes physically or mentally incapacitated to
8perform the duties of his position shall receive a temporary
9disability benefit, provided that:
10        (1) the agency responsible for determining the
11    liability of the State (i) has formally denied all
12    employer-paid temporary total disability benefits under
13    the Workers' Compensation Act or the Workers' Occupational
14    Diseases Act and an appeal of that denial is pending before
15    the Illinois Workers' Compensation Commission, or (ii) has
16    granted and then terminated for any reason an employer-paid
17    temporary total disability benefit and the member has filed
18    a petition for a emergency hearing under Section 19(b) or
19    Section 19(b-1) of the Workers' Compensation Act or Section
20    19(b) or Section 19(b-1) of the Workers' Occupational
21    Diseases Act; and
22        (2) application is made not later than (i) 12 months
23    after the date that the disability results in loss of pay,
24    (ii) 12 months after the date the agency responsible for
25    determining the liability of the State under the Workers'

 

 

SB2362 Engrossed- 35 -LRB099 17070 RPS 41428 b

1    Compensation Act or Workers' Occupational Diseases Act has
2    formally denied or terminated the employer-paid temporary
3    total disability benefit, or (iii) in the case of
4    termination of an employer-paid temporary total disability
5    benefit, 12 months after the effective date of this
6    amendatory Act of 1995, whichever occurs last; and
7        (3) proper proof is received from one or more licensed
8    healthcare practitioners physicians designated by the
9    Board certifying that the member is mentally or physically
10    incapacitated; and .
11        (4) the Board may waive the application deadline
12    requirement as prescribed under item (2) of this subsection
13    and the benefit shall be payable retroactive to the date
14    that the participant attained the eligibility criteria for
15    the benefit provided by this Section.
16    (b) In the case of a denial of benefits, the temporary
17disability benefit shall begin to accrue on the 31st day of
18absence from work on account of disability, but the benefit
19shall not become actually payable to the member until the
20expiration of 31 days from the day upon which the member last
21received or had a right to receive any compensation.
22    In the case of termination of an employer-paid temporary
23total disability benefit, the temporary disability benefit
24under this Section shall be calculated from the day following
25the date of termination of the employer-paid benefit or the
2631st day of absence from work on account of disability,

 

 

SB2362 Engrossed- 36 -LRB099 17070 RPS 41428 b

1whichever is later, but shall not become payable to the member
2until (i) the member's right to an employer-paid temporary
3total disability benefit is denied as a result of the emergency
4hearing held under Section 19(b) or Section 19(b-1) of the
5Workers' Compensation Act or Section 19(b) or Section 19(b-1)
6of the Workers' Occupational Diseases Act or (ii) the
7expiration of 150 days from the date of termination of the
8employer-paid benefit, whichever occurs first. If a terminated
9employer-paid temporary total disability benefit is resumed or
10replaced with another employer-paid disability benefit and the
11resumed or replacement benefit is later terminated and the
12member again files a petition for a emergency hearing under
13Section 19(b) or Section 19(b-1) of the Workers' Compensation
14Act or Section 19(b) or Section 19(b-1) of the Workers'
15Occupational Diseases Act, the member may again become eligible
16to receive a temporary disability benefit under this Section.
17The waiting period before the temporary disability benefit
18under this Section becomes payable applies each time that the
19benefit is reinstated.
20    The benefit shall continue to accrue until the first of the
21following events occurs:
22        (1) the disability ceases;
23        (2) the member engages in gainful employment;
24        (3) the end of the month in which the member attains
25    age 65, in the case of benefits commencing prior to
26    attainment of age 60;

 

 

SB2362 Engrossed- 37 -LRB099 17070 RPS 41428 b

1        (4) the end of the month following the fifth
2    anniversary of the effective date of the benefit in the
3    case of benefits commencing on or after attainment of age
4    60;
5        (5) the end of the month in which the death of the
6    member occurs;
7        (6) the end of the month in which the aggregate period
8    for which temporary disability payments have been made
9    becomes equal to 1/2 of the member's total period of
10    creditable service, not including the time for which he has
11    received a temporary disability benefit or nonoccupational
12    disability benefit; for purposes of this item (6) only, in
13    the case of a member to whom Section 14-108.2a or 14-108.2b
14    applies and who, at the time disability commences, is
15    performing services for the Illinois Department of Public
16    Health or the Department of State Police relating to the
17    transferred functions referred to in that Section and has
18    less than 10 years of creditable service under this
19    Article, the member's "total period of creditable service"
20    shall be augmented by an amount equal to (i) one half of
21    the member's period of creditable service in the Fund
22    established under Article 8 (excluding any creditable
23    service over 20 years), minus (ii) the amount of the
24    member's creditable service under this Article;
25        (7) a payment is made on the member's claim pursuant to
26    a determination made by the agency responsible for

 

 

SB2362 Engrossed- 38 -LRB099 17070 RPS 41428 b

1    determining the liability of the State under the Workers'
2    Compensation Act or the Workers' Occupational Diseases
3    Act;
4        (8) a final determination is made on the member's claim
5    by the Illinois Workers' Compensation Commission.
6    (c) The temporary disability benefit shall be 50% of the
7member's final average compensation at the date of disability.
8    If a covered employee is eligible under the Social Security
9Act for a disability benefit before attaining the Social
10Security full retirement age 65, or a retirement benefit on or
11after attaining the Social Security full retirement age 65,
12then the amount of the member's temporary disability benefit
13shall be reduced by the amount of primary benefit the member is
14eligible to receive under the Social Security Act, whether or
15not such eligibility came about as the result of service as a
16covered employee under this Article. The Board may make such
17reduction pending a determination of eligibility if it appears
18that the employee may be so eligible, and shall make an
19appropriate adjustment if necessary after such determination
20has been made. The amount of temporary disability benefit
21payable under this Article shall not be reduced by reason of
22any increase in benefits payable under the Social Security Act
23which occurs after the reduction required by this paragraph has
24been applied. For purposes of this subsection, "Social Security
25full retirement age" is the age at which an individual is
26eligible to receive full Social Security retirement benefits.

 

 

SB2362 Engrossed- 39 -LRB099 17070 RPS 41428 b

1    (d) The temporary disability benefit provided under this
2Section is intended as a temporary payment of occupational or
3nonoccupational disability benefit, whichever is appropriate,
4in cases in which the occupational or nonoccupational character
5of the disability has not been finally determined.
6    When an employer-paid disability benefit is paid or
7resumed, the Board shall calculate the benefit that is payable
8under Section 14-123 and shall deduct from the benefit payable
9under Section 14-123 the amounts already paid under this
10Section; those amounts shall then be treated as if they had
11been paid under Section 14-123.
12    When a final determination of the character of the
13disability has been made by the Illinois Workers' Compensation
14Commission, or by settlement between the parties to the
15disputed claim, the Board shall calculate the benefit that is
16payable under Section 14-123 or 14-124, whichever is
17applicable, and shall deduct from such benefit the amounts
18already paid under this Section; such amounts shall then be
19treated as if they had been paid under such Section 14-123 or
2014-124.
21    (e) Any excess benefits paid under this Section shall be
22subject to recovery by the System from benefits payable under
23the Workers' Compensation Act or the Workers' Occupational
24Diseases Act or from third parties as provided in Section
2514-129, or from any other benefits payable either to the member
26or on his behalf under this Article. A member who accepts

 

 

SB2362 Engrossed- 40 -LRB099 17070 RPS 41428 b

1benefits under this Section acknowledges and authorizes these
2recovery rights of the System.
3    (f) Service credits under the State Universities
4Retirement System and the Teachers' Retirement System of the
5State of Illinois shall be considered for the purposes of
6determining temporary disability benefit eligibility under
7this Section, and for determining the total period of time for
8which such benefits are payable.
9    (g) The Board shall prescribe rules and regulations
10governing the filing of claims for temporary disability
11benefits, and the investigation, control and supervision of
12such claims.
13    (h) References in this Section to employer-paid benefits
14include benefits paid for by the State, either directly or
15through a program of insurance or self-insurance, whether paid
16through the member's own department or through some other
17department or entity; but the term does not include benefits
18paid by the System under this Article.
19(Source: P.A. 93-721, eff. 1-1-05.)
 
20    (40 ILCS 5/14-124)  (from Ch. 108 1/2, par. 14-124)
21    Sec. 14-124. Nonoccupational disability benefit. A member
22with at least 1 1/2 years of creditable service may be granted
23a nonoccupational disability benefit, if:
24        (1) application for the benefit is made to the system
25    by the member in writing after the commencement of

 

 

SB2362 Engrossed- 41 -LRB099 17070 RPS 41428 b

1    disability;
2        (2) the member is found upon medical examination to be
3    mentally or physically incapacitated to perform the duties
4    of the member's position;
5        (3) the disability resulted from a cause other than an
6    injury or illness sustained in connection with the member's
7    performance of duty as a State employee;
8        (4) the member has been granted a leave of absence for
9    disability at the time of commencement of disability.
10    Renewal of a disability leave of absence shall not be
11    required for the continued payment of benefits; and
12        (5) the member has used all accumulated sick leave
13    available at the beginning of the leave of absence for
14    disability.
15    The benefit shall begin to accrue on the latest of: (i) the
1631st day of absence from work on account of disability
17(including any periods of such absence for which sick pay was
18received); (ii) the day following the day on which the member
19last receives or has a right to receive any compensation as an
20employee, including any sick pay; or (iii) if application by
21the member is delayed more than 90 days after the member's name
22is removed from the payroll, the benefit shall be payable
23retroactive to the date that a participant attained the
24eligibility criteria as provided by this Section the date
25application is received by the system. The benefit shall
26continue to accrue until the first of the following to occur:

 

 

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1        (a) the date on which disability ceases;
2        (b) the end of the month in which the member attains
3    age 65 in the case of benefits commencing prior to
4    attainment of age 60;
5        (c) the end of the month following the fifth
6    anniversary of the effective date of the benefit, or of the
7    temporary disability benefit if one was received, in the
8    case of benefits commencing on or after attainment of age
9    60;
10        (d) the end of the month in which the aggregate period
11    for which non-occupational disability and temporary
12    disability benefit payments have been made becomes equal to
13    1/2 of the member's total period of creditable service, not
14    including the time during which he has received a temporary
15    disability benefit or nonoccupational disability benefit;
16    for purposes of this item (d) only, in the case of a member
17    to whom Section 14-108.2a or 14-108.2b applies and who, at
18    the time disability commences, is performing services for
19    the Illinois Department of Public Health or the Department
20    of State Police relating to the transferred functions
21    referred to in that Section and has less than 10 years of
22    creditable service under this Article, the member's "total
23    period of creditable service" shall be augmented by an
24    amount equal to (i) one half of the member's period of
25    creditable service in the Fund established under Article 8
26    (excluding any creditable service over 20 years), minus

 

 

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1    (ii) the amount of the member's creditable service under
2    this Article;
3        (e) the date on which the member engages in gainful
4    employment;
5        (f) the end of the month in which the death of the
6    member occurs.
7    If disability has ceased and the member again becomes
8disabled within 60 days from date of resumption of State
9employment, and if the disability is due to the same cause for
10which he received nonoccupational disability benefit
11immediately preceding such reentry into service, the 30 days
12waiting period prescribed for the receipt of benefits is waived
13as to such new period of disability.
14    A member shall be considered disabled only when the board
15has received:
16        (a) a written certificate by one or more licensed
17    healthcare practitioners and practicing physicians
18    designated by the board, certifying that the member is
19    disabled and unable properly to perform the duties of his
20    position at the time of disability; and
21        (b) the employee certifies that he is not and has not
22    been engaged in gainful employment.
23    The board shall prescribe rules and regulations governing
24the filing of claims for nonoccupational disability benefits,
25and the investigation, control and supervision of such claims.
26    Service credits under the State Universities Retirement

 

 

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1System and the Teachers' Retirement System of the State of
2Illinois shall be considered for the purposes of
3nonoccupational disability benefit eligibility under this
4Article and for the total period of time for which such
5benefits are payable.
6(Source: P.A. 88-535; 89-246, eff. 8-4-95.)
 
7    (40 ILCS 5/14-125)  (from Ch. 108 1/2, par. 14-125)
8    Sec. 14-125. Nonoccupational disability benefit - Amount
9of. The nonoccupational disability benefit shall be 50% of the
10member's final average compensation at the time disability
11occurred. In the case of a member whose benefit was resumed due
12to the same disability, the amount of the benefit shall be the
13same as that last paid before resumption of State employment.
14In the event that a temporary disability benefit has been
15received, the nonoccupational disability benefit shall be
16subject to adjustment by the Board under Section 14-123.1.
17    If a covered employee is eligible for a disability benefit
18before attaining the Social Security full retirement age 65 or
19a retirement benefit on or after attaining the Social Security
20full retirement age 65 under the Federal Social Security Act,
21the amount of the member's nonoccupational disability benefit
22shall be reduced by the amount of primary benefit the member
23would be eligible to receive under such Act, whether or not
24entitlement thereto came about as the result of service as a
25covered employee under this Article. The Board may make such

 

 

SB2362 Engrossed- 45 -LRB099 17070 RPS 41428 b

1reduction if it appears that the employee may be so eligible
2pending determination of eligibility and make an appropriate
3adjustment if necessary after such determination. The amount of
4any nonoccupational disability benefit payable under this
5Article shall not be reduced by reason of any increase under
6the Federal Social Security Act which occurs after the offset
7required by this Section is first applied to that benefit.
8    For purposes of this Section, "Social Security full
9retirement age" is the age at which an individual is eligible
10to receive full Social Security retirement benefits.
11(Source: P.A. 84-1028.)
 
12    (40 ILCS 5/14-127)  (from Ch. 108 1/2, par. 14-127)
13    Sec. 14-127. Credit during disability. During any period of
14disability for which nonoccupational, occupational or
15temporary disability benefits are paid, there shall be credited
16to the account of the disabled member amounts representing the
17contributions the member would have made had he or she remained
18in active employment in the same position and at the rate of
19compensation in effect at the time disability occurred. Service
20credit shall also be granted him during any such periods of
21disability for all purposes of this Article except for
22measuring the duration of nonoccupational and temporary
23disability benefits. The resolution of a temporary disability
24benefit into an occupational or nonoccupational disability
25benefit shall not entitle the disabled member to receive

 

 

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1duplicate contribution and service credit under this Section
2for the period during which the temporary disability benefit
3was paid.
4(Source: P.A. 84-1028.)
 
5    (40 ILCS 5/15-158.2)
6    Sec. 15-158.2. Self-managed plan.
7    (a) Purpose. The General Assembly finds that it is
8important for colleges and universities to be able to attract
9and retain the most qualified employees and that in order to
10attract and retain these employees, colleges and universities
11should have the flexibility to provide a defined contribution
12plan as an alternative for eligible employees who elect not to
13participate in a defined benefit retirement program provided
14under this Article. Accordingly, the State Universities
15Retirement System is hereby authorized to establish and
16administer a self-managed plan, which shall offer
17participating employees the opportunity to accumulate assets
18for retirement through a combination of employee and employer
19contributions that may be invested in mutual funds, collective
20investment funds, or other investment products and used to
21purchase annuity contracts, either fixed or variable or a
22combination thereof. The plan must be qualified under the
23Internal Revenue Code of 1986.
24    (b) Adoption by employers. Each employer subject to this
25Article may elect to adopt the self-managed plan established

 

 

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1under this Section; this election is irrevocable. An employer's
2election to adopt the self-managed plan makes available to the
3eligible employees of that employer the elections described in
4Section 15-134.5.
5    The State Universities Retirement System shall be the plan
6sponsor for the self-managed plan and shall prepare a plan
7document and prescribe such rules and procedures as are
8considered necessary or desirable for the administration of the
9self-managed plan. Consistent with its fiduciary duty to the
10participants and beneficiaries of the self-managed plan, the
11Board of Trustees of the System may delegate aspects of plan
12administration as it sees fit to companies authorized to do
13business in this State, to the employers, or to a combination
14of both.
15    (c) Selection of service providers and funding vehicles.
16The System, in consultation with the employers, shall solicit
17proposals to provide administrative services and funding
18vehicles for the self-managed plan from insurance and annuity
19companies and mutual fund companies, banks, trust companies, or
20other financial institutions authorized to do business in this
21State. In reviewing the proposals received and approving and
22contracting with no fewer than 2 and no more than 7 companies,
23the Board of Trustees of the System shall consider, among other
24things, the following criteria:
25        (1) the nature and extent of the benefits that would be
26    provided to the participants;

 

 

SB2362 Engrossed- 48 -LRB099 17070 RPS 41428 b

1        (2) the reasonableness of the benefits in relation to
2    the premium charged;
3        (3) the suitability of the benefits to the needs and
4    interests of the participating employees and the employer;
5        (4) the ability of the company to provide benefits
6    under the contract and the financial stability of the
7    company; and
8        (5) the efficacy of the contract in the recruitment and
9    retention of employees.
10    The System, in consultation with the employers, shall
11periodically review each approved company. A company may
12continue to provide administrative services and funding
13vehicles for the self-managed plan only so long as it continues
14to be an approved company under contract with the Board.
15    (d) Employee Direction. Employees who are participating in
16the program must be allowed to direct the transfer of their
17account balances among the various investment options offered,
18subject to applicable contractual provisions. The participant
19shall not be deemed a fiduciary by reason of providing such
20investment direction. A person who is a fiduciary shall not be
21liable for any loss resulting from such investment direction
22and shall not be deemed to have breached any fiduciary duty by
23acting in accordance with that direction. The System shall
24provide advance notice to the participant of the participant's
25obligation to direct the investment of employee and employer
26contributions into one or more investment funds selected by the

 

 

SB2362 Engrossed- 49 -LRB099 17070 RPS 41428 b

1System at the time he or she makes his or her initial
2retirement plan selection. If a participant fails to direct the
3investment of employee and employer contributions into the
4various investment options offered to the participant when
5making his or her initial retirement election choice, that
6failure shall require the System to invest the employee and
7employer contributions in a default investment fund on behalf
8of the participant, and the investment shall be deemed to have
9been made at the participant's investment direction. The
10participant has the right to transfer account balances out of
11the default investment fund during time periods designated by
12the System. Neither the System nor the employer guarantees any
13of the investments in the employee's account balances.
14    (e) Participation. An employee eligible to participate in
15the self-managed plan must make a written election in
16accordance with the provisions of Section 15-134.5 and the
17procedures established by the System. Participation in the
18self-managed plan by an electing employee shall begin on the
19first day of the first pay period following the later of the
20date the employee's election is filed with the System or the
21effective date as of which the employee's employer begins to
22offer participation in the self-managed plan. Employers may not
23make the self-managed plan available earlier than January 1,
241998. An employee's participation in any other retirement
25program administered by the System under this Article shall
26terminate on the date that participation in the self-managed

 

 

SB2362 Engrossed- 50 -LRB099 17070 RPS 41428 b

1plan begins.
2    An employee who has elected to participate in the
3self-managed plan under this Section must continue
4participation while employed in an eligible position, and may
5not participate in any other retirement program administered by
6the System under this Article while employed by that employer
7or any other employer that has adopted the self-managed plan,
8unless the self-managed plan is terminated in accordance with
9subsection (i).
10    Notwithstanding any other provision of this Article, a Tier
112 member shall have the option to enroll in the self-managed
12plan.
13    Participation in the self-managed plan under this Section
14shall constitute membership in the State Universities
15Retirement System.
16    A participant under this Section shall be entitled to the
17benefits of Article 20 of this Code.
18    (f) Establishment of Initial Account Balance. If at the
19time an employee elects to participate in the self-managed plan
20he or she has rights and credits in the System due to previous
21participation in the traditional benefit package, the System
22shall establish for the employee an opening account balance in
23the self-managed plan, equal to the amount of contribution
24refund that the employee would be eligible to receive under
25Section 15-154 if the employee terminated employment on that
26date and elected a refund of contributions, except that this

 

 

SB2362 Engrossed- 51 -LRB099 17070 RPS 41428 b

1hypothetical refund shall include interest at the effective
2rate for the respective years. The System shall transfer assets
3from the defined benefit retirement program to the self-managed
4plan, as a tax free transfer in accordance with Internal
5Revenue Service guidelines, for purposes of funding the
6employee's opening account balance.
7    (g) No Duplication of Service Credit. Notwithstanding any
8other provision of this Article, an employee may not purchase
9or receive service or service credit applicable to any other
10retirement program administered by the System under this
11Article for any period during which the employee was a
12participant in the self-managed plan established under this
13Section.
14    (h) Contributions. The self-managed plan shall be funded by
15contributions from employees participating in the self-managed
16plan and employer contributions as provided in this Section.
17    The contribution rate for employees participating in the
18self-managed plan under this Section shall be equal to the
19employee contribution rate for other participants in the
20System, as provided in Section 15-157. This required
21contribution shall be made as an "employer pick-up" under
22Section 414(h) of the Internal Revenue Code of 1986 or any
23successor Section thereof. Any employee participating in the
24System's traditional benefit package prior to his or her
25election to participate in the self-managed plan shall continue
26to have the employer pick up the contributions required under

 

 

SB2362 Engrossed- 52 -LRB099 17070 RPS 41428 b

1Section 15-157. However, the amounts picked up after the
2election of the self-managed plan shall be remitted to and
3treated as assets of the self-managed plan. In no event shall
4an employee have an option of receiving these amounts in cash.
5Employees may make additional contributions to the
6self-managed plan in accordance with procedures prescribed by
7the System, to the extent permitted under rules prescribed by
8the System.
9    The program shall provide for employer contributions to be
10credited to each self-managed plan participant at a rate of
117.6% of the participating employee's salary, less the amount
12used by the System to provide disability benefits for the
13employee. The amounts so credited shall be paid into the
14participant's self-managed plan accounts in a manner to be
15prescribed by the System.
16    An amount of employer contribution, not exceeding 1% of the
17participating employee's salary, shall be used for the purpose
18of providing the disability benefits of the System to the
19employee. Prior to the beginning of each plan year under the
20self-managed plan, the Board of Trustees shall determine, as a
21percentage of salary, the amount of employer contributions to
22be allocated during that plan year for providing disability
23benefits for employees in the self-managed plan.
24    The State of Illinois shall make contributions by
25appropriations to the System of the employer contributions
26required for employees who participate in the self-managed plan

 

 

SB2362 Engrossed- 53 -LRB099 17070 RPS 41428 b

1under this Section. The amount required shall be certified by
2the Board of Trustees of the System and paid by the State in
3accordance with Section 15-165. The System shall not be
4obligated to remit the required employer contributions to any
5of the insurance and annuity companies, mutual fund companies,
6banks, trust companies, financial institutions, or other
7sponsors of any of the funding vehicles offered under the
8self-managed plan until it has received the required employer
9contributions from the State. In the event of a deficiency in
10the amount of State contributions, the System shall implement
11those procedures described in subsection (c) of Section 15-165
12to obtain the required funding from the General Revenue Fund.
13    (i) Termination. The self-managed plan authorized under
14this Section may be terminated by the System, subject to the
15terms of any relevant contracts, and the System shall have no
16obligation to reestablish the self-managed plan under this
17Section. This Section does not create a right to continued
18participation in any self-managed plan set up by the System
19under this Section. If the self-managed plan is terminated, the
20participants shall have the right to participate in one of the
21other retirement programs offered by the System and receive
22service credit in such other retirement program for any years
23of employment following the termination.
24    (j) Vesting; Withdrawal; Return to Service. A participant
25in the self-managed plan becomes vested in the employer
26contributions credited to his or her accounts in the

 

 

SB2362 Engrossed- 54 -LRB099 17070 RPS 41428 b

1self-managed plan on the earliest to occur of the following:
2(1) completion of 5 years of service with an employer described
3in Section 15-106; (2) the death of the participating employee
4while employed by an employer described in Section 15-106, if
5the participant has completed at least 1 1/2 years of service;
6or (3) the participant's election to retire and apply the
7reciprocal provisions of Article 20 of this Code.
8    A participant in the self-managed plan who receives a
9distribution of his or her vested amounts from the self-managed
10plan while not yet eligible for retirement under this Article
11(and Article 20, if applicable) shall forfeit all service
12credit and accrued rights in the System; if subsequently
13re-employed, the participant shall be considered a new
14employee. If a former participant again becomes a participating
15employee (or becomes employed by a participating system under
16Article 20 of this Code) and continues as such for at least 2
17years, all such rights, service credits, and previous status as
18a participant shall be restored upon repayment of the amount of
19the distribution, without interest.
20    (k) Benefit amounts. If an employee who is vested in
21employer contributions terminates employment, the employee
22shall be entitled to a benefit which is based on the account
23values attributable to both employer and employee
24contributions and any investment return thereon.
25    If an employee who is not vested in employer contributions
26terminates employment, the employee shall be entitled to a

 

 

SB2362 Engrossed- 55 -LRB099 17070 RPS 41428 b

1benefit based solely on the account values attributable to the
2employee's contributions and any investment return thereon,
3and the employer contributions and any investment return
4thereon shall be forfeited. Any employer contributions which
5are forfeited shall be held in escrow by the company investing
6those contributions and shall be used as directed by the System
7for future allocations of employer contributions or for the
8restoration of amounts previously forfeited by former
9participants who again become participating employees.
10(Source: P.A. 98-92, eff. 7-16-13.)
 
11    (40 ILCS 5/18-125)  (from Ch. 108 1/2, par. 18-125)
12    Sec. 18-125. Retirement annuity amount.
13    (a) The annual retirement annuity for a participant who
14terminated service as a judge prior to July 1, 1971 shall be
15based on the law in effect at the time of termination of
16service.
17    (b) Except as provided in subsection (b-5), effective July
181, 1971, the retirement annuity for any participant in service
19on or after such date shall be 3 1/2% of final average salary,
20as defined in this Section, for each of the first 10 years of
21service, and 5% of such final average salary for each year of
22service on excess of 10.
23    For purposes of this Section, final average salary for a
24participant who first serves as a judge before August 10, 2009
25(the effective date of Public Act 96-207) shall be:

 

 

SB2362 Engrossed- 56 -LRB099 17070 RPS 41428 b

1        (1) the average salary for the last 4 years of credited
2    service as a judge for a participant who terminates service
3    before July 1, 1975.
4        (2) for a participant who terminates service after June
5    30, 1975 and before July 1, 1982, the salary on the last
6    day of employment as a judge.
7        (3) for any participant who terminates service after
8    June 30, 1982 and before January 1, 1990, the average
9    salary for the final year of service as a judge.
10        (4) for a participant who terminates service on or
11    after January 1, 1990 but before the effective date of this
12    amendatory Act of 1995, the salary on the last day of
13    employment as a judge.
14        (5) for a participant who terminates service on or
15    after the effective date of this amendatory Act of 1995,
16    the salary on the last day of employment as a judge, or the
17    highest salary received by the participant for employment
18    as a judge in a position held by the participant for at
19    least 4 consecutive years, whichever is greater.
20    However, in the case of a participant who elects to
21discontinue contributions as provided in subdivision (a)(2) of
22Section 18-133, the time of such election shall be considered
23the last day of employment in the determination of final
24average salary under this subsection.
25    For a participant who first serves as a judge on or after
26August 10, 2009 (the effective date of Public Act 96-207) and

 

 

SB2362 Engrossed- 57 -LRB099 17070 RPS 41428 b

1before January 1, 2011 (the effective date of Public Act
296-889), final average salary shall be the average monthly
3salary obtained by dividing the total salary of the participant
4during the period of: (1) the 48 consecutive months of service
5within the last 120 months of service in which the total
6compensation was the highest, or (2) the total period of
7service, if less than 48 months, by the number of months of
8service in that period.
9    The maximum retirement annuity for any participant shall be
1085% of final average salary.
11    (b-5) Notwithstanding any other provision of this Article,
12for a participant who first serves as a judge on or after
13January 1, 2011 (the effective date of Public Act 96-889), the
14annual retirement annuity is 3% of the participant's final
15average salary for each year of service. The maximum retirement
16annuity payable shall be 60% of the participant's final average
17salary.
18    For a participant who first serves as a judge on or after
19January 1, 2011 (the effective date of Public Act 96-889),
20final average salary shall be the average monthly salary
21obtained by dividing the total salary of the judge during the
2296 consecutive months of service within the last 120 months of
23service in which the total salary was the highest by the number
24of months of service in that period; however, beginning January
251, 2011, the annual salary for all purposes under this Article
26may not exceed $106,800, except that that amount shall annually

 

 

SB2362 Engrossed- 58 -LRB099 17070 RPS 41428 b

1thereafter be increased by the lesser of (i) 3% of that amount,
2including all previous adjustments, or (ii) the annual
3unadjusted percentage increase (but not less than zero) in the
4consumer price index-u for the 12 months ending with the
5September preceding each November 1. "Consumer price index-u"
6means the index published by the Bureau of Labor Statistics of
7the United States Department of Labor that measures the average
8change in prices of goods and services purchased by all urban
9consumers, United States city average, all items, 1982-84 =
10100. The new amount resulting from each annual adjustment shall
11be determined by the Public Pension Division of the Department
12of Insurance and made available to the Board by November 1st of
13each year.
14    (c) The retirement annuity for a participant who retires
15prior to age 60 with less than 28 years of service in the
16System shall be reduced 1/2 of 1% for each month that the
17participant's age is under 60 years at the time the annuity
18commences. However, for a participant who retires on or after
19the effective date of this amendatory Act of the 91st General
20Assembly, the percentage reduction in retirement annuity
21imposed under this subsection shall be reduced by 5/12 of 1%
22for every month of service in this System in excess of 20
23years, and therefore a participant with at least 26 years of
24service in this System may retire at age 55 without any
25reduction in annuity.
26    The reduction in retirement annuity imposed by this

 

 

SB2362 Engrossed- 59 -LRB099 17070 RPS 41428 b

1subsection shall not apply in the case of retirement on account
2of disability.
3    (d) Notwithstanding any other provision of this Article,
4for a participant who first serves as a judge on or after
5January 1, 2011 (the effective date of Public Act 96-889) and
6who is retiring after attaining age 62, the retirement annuity
7shall be reduced by 1/2 of 1% for each month that the
8participant's age is under age 67 at the time the annuity
9commences.
10(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
1196-1000, eff. 7-2-10; 96-1490, eff. 1-1-11.)
 
12    (40 ILCS 5/18-126.1)  (from Ch. 108 1/2, par. 18-126.1)
13    Sec. 18-126.1. Temporary total disability. A participant
14who has served for at least 2 years as a judge and has at least
152 years of service credit shall be entitled to a temporary
16total disability benefit provided:
17    (1) While in employment as a judge, the participant is
18found by medical examination to be mentally or physically
19incompetent to perform his or her duties;
20    (2) The participant does not receive or have a right to
21receive any salary as a judge;
22    (3) The board has received written certifications by at
23least 2 licensed and practicing physicians designated by it
24certifying that the participant is totally disabled and unable
25to perform the duties of his or her office as a consequence

 

 

SB2362 Engrossed- 60 -LRB099 17070 RPS 41428 b

1thereof; and
2    (4) The participant is not engaged in any form of gainful
3occupation during his or her disability.
4     The benefit shall begin as of the day following the
5removal of the judge from the payroll on account of the
6disability and be payable during the period of disability but
7not beyond the term of office for which the participant was
8last elected or appointed.
9    The benefit shall be 50% of the participant's rate of
10salary in effect at the date of removal from the payroll and
11shall be payable monthly. The rate of salary to determine the
12benefit under this Section payable to a participant who first
13serves as a judge on or after January 1, 201l shall be subject
14to the annual salary limitation prescribed by subsection (b-5)
15of Section 18-125.
16    A participant shall receive service credit for retirement
17and survivor's annuity purposes for the period that temporary
18disability benefits are paid.
19    The board shall prescribe rules and regulations necessary
20for the administration of this benefit.
21(Source: P.A. 83-1440.)
 
22    (40 ILCS 5/18-128.01)  (from Ch. 108 1/2, par. 18-128.01)
23    Sec. 18-128.01. Amount of survivor's annuity.
24    (a) Upon the death of an annuitant, his or her surviving
25spouse shall be entitled to a survivor's annuity of 66 2/3% of

 

 

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1the annuity the annuitant was receiving immediately prior to
2his or her death, inclusive of annual increases in the
3retirement annuity to the date of death.
4    (b) Upon the death of an active participant, his or her
5surviving spouse shall receive a survivor's annuity of 66 2/3%
6of the annuity earned by the participant as of the date of his
7or her death, determined without regard to whether the
8participant had attained age 60 as of that time, or 7 1/2% of
9the last salary of the decedent, whichever is greater.
10    (c) Upon the death of a participant who had terminated
11service with at least 10 years of service, his or her surviving
12spouse shall be entitled to a survivor's annuity of 66 2/3% of
13the annuity earned by the deceased participant at the date of
14death.
15    (d) Upon the death of an annuitant, active participant, or
16participant who had terminated service with at least 10 years
17of service, each surviving child under the age of 18 or
18disabled as defined in Section 18-128 shall be entitled to a
19child's annuity in an amount equal to 5% of the decedent's
20final salary, not to exceed in total for all such children the
21greater of 20% of the decedent's last salary or 66 2/3% of the
22annuity received or earned by the decedent as provided under
23subsections (a) and (b) of this Section. This child's annuity
24shall be paid whether or not a survivor's annuity was elected
25under Section 18-123.
26    (e) The changes made in the survivor's annuity provisions

 

 

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1by Public Act 82-306 shall apply to the survivors of a deceased
2participant or annuitant whose death occurs on or after August
321, 1981.
4    (f) Beginning January 1, 1990, every survivor's annuity
5shall be increased (1) on each January 1 occurring on or after
6the commencement of the annuity if the deceased member died
7while receiving a retirement annuity, or (2) in other cases, on
8each January 1 occurring on or after the first anniversary of
9the commencement of the annuity, by an amount equal to 3% of
10the current amount of the annuity, including any previous
11increases under this Article. Such increases shall apply
12without regard to whether the deceased member was in service on
13or after the effective date of this amendatory Act of 1991, but
14shall not accrue for any period prior to January 1, 1990.
15    (g) Notwithstanding any other provision of this Article,
16the initial survivor's annuity for a survivor of a participant
17who first serves as a judge after January 1, 2011 (the
18effective date of Public Act 96-889) shall be in the amount of
1966 2/3% of the annuity received or earned by the decedent, and
20shall be increased (1) on each January 1 occurring on or after
21the commencement of the annuity if the deceased participant
22died while receiving a retirement annuity, or (2) in other
23cases, on each January 1 occurring on or after the first
24anniversary of the commencement of the annuity, but in no event
25prior to age 67, by an amount equal to 3% or the annual
26unadjusted percentage increase in the consumer price index-u as

 

 

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1determined by the Public Pension Division of the Department of
2Insurance under subsection (b-5) of Section 18-125, whichever
3is less, of the survivor's annuity then being paid. If 2 or
4more persons are eligible to receive survivor's annuities as
5provided under this Section based on the same deceased
6participant that first serves as a judge after January 1, 2011,
7the calculation of the survivor's annuities shall be based on
8the total calculation of the survivor's annuity and divided pro
9rata.
10(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
11    (40 ILCS 5/18-133)  (from Ch. 108 1/2, par. 18-133)
12    Sec. 18-133. Financing; employee contributions.
13    (a) Effective July 1, 1967, each participant is required to
14contribute 7 1/2% of each payment of salary toward the
15retirement annuity. Such contributions shall continue during
16the entire time the participant is in service, with the
17following exceptions:
18        (1) Contributions for the retirement annuity are not
19    required on salary received after 18 years of service by
20    persons who were participants before January 2, 1954.
21        (2) A participant who continues to serve as a judge
22    after becoming eligible to receive the maximum rate of
23    annuity may elect, through a written direction filed with
24    the Board, to discontinue contributing to the System. Any
25    such option elected by a judge shall be irrevocable unless

 

 

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1    prior to January 1, 2000, and while continuing to serve as
2    judge, the judge (A) files with the Board a letter
3    cancelling the direction to discontinue contributing to
4    the System and requesting that such contributing resume,
5    and (B) pays into the System an amount equal to the total
6    of the discontinued contributions plus interest thereon at
7    5% per annum. Service credits earned in any other
8    "participating system" as defined in Article 20 of this
9    Code shall be considered for purposes of determining a
10    judge's eligibility to discontinue contributions under
11    this subdivision (a)(2).
12        (3) A participant who (i) first serves as a judge
13    before January 1, 2011 and has attained age 60, or first
14    serves as a judge on or after January 1, 2011 and has
15    attained age 67, (ii) continues to serve as a judge after
16    becoming eligible to receive the maximum rate of annuity,
17    and (iii) has not elected to discontinue contributing to
18    the System under subdivision (a)(2) of this Section (or has
19    revoked any such election) may elect, through a written
20    direction filed with the Board, to make contributions to
21    the System based only on the amount of the increases in
22    salary received by the judge on or after the date of the
23    election, rather than the total salary received. If a judge
24    who is making contributions to the System on the effective
25    date of this amendatory Act of the 91st General Assembly
26    makes an election to limit contributions under this

 

 

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1    subdivision (a)(3) within 90 days after that effective
2    date, the election shall be deemed to become effective on
3    that effective date and the judge shall be entitled to
4    receive a refund of any excess contributions paid to the
5    System during that 90-day period; any other election under
6    this subdivision (a)(3) becomes effective on the first of
7    the month following the date of the election. An election
8    to limit contributions under this subdivision (a)(3) is
9    irrevocable. Service credits earned in any other
10    participating system as defined in Article 20 of this Code
11    shall be considered for purposes of determining a judge's
12    eligibility to make an election under this subdivision
13    (a)(3).
14    (b) Beginning July 1, 1969, each participant is required to
15contribute 1% of each payment of salary towards the automatic
16increase in annuity provided in Section 18-125.1. However, such
17contributions need not be made by any participant who has
18elected prior to September 15, 1969, not to be subject to the
19automatic increase in annuity provisions.
20    (c) Effective July 13, 1953, each married participant
21subject to the survivor's annuity provisions is required to
22contribute 2 1/2% of each payment of salary, whether or not he
23or she is required to make any other contributions under this
24Section. Such contributions shall be made concurrently with the
25contributions made for annuity purposes.
26    (d) Notwithstanding any other provision of this Article,

 

 

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1the required contributions for a participant who first becomes
2a participant on or after January 1, 2011 shall not exceed the
3contributions that would be due under this Article if that
4participant's highest salary for annuity purposes were
5$106,800, plus any increase in that amount under Section
618-125.
7(Source: P.A. 96-1490, eff. 1-1-11.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.