Sen. Daniel Biss

Filed: 3/9/2016

 

 


 

 


 
09900SB2362sam002LRB099 17070 RPS 45887 a

1
AMENDMENT TO SENATE BILL 2362

2    AMENDMENT NO. ______. Amend Senate Bill 2362 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 7-139, 7-139.2, 7-142.1, 7-145.1, 7-169,
614-123, 14-123.1, 14-124, 14-125, 14-127, 15-158.2, 18-125,
718-126.1, 18-128.01, 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

 

 

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1    is an employee of a participating municipality or
2    participating instrumentality on the effective date shall
3    be granted creditable service, but no credits under
4    paragraph 2 of this subsection (a), for periods of prior
5    service for which credit has not been received under any
6    other pension fund or retirement system established under
7    this Code, as follows:
8        If the effective date of participation for the
9    participating municipality or participating
10    instrumentality is on or before January 1, 1998, creditable
11    service shall be granted for the entire period of prior
12    service with that employer without any employee
13    contribution.
14        If the effective date of participation for the
15    participating municipality or participating
16    instrumentality is after January 1, 1998, creditable
17    service shall be granted for the last 20% of the period of
18    prior service with that employer, but no more than 5 years,
19    without any employee contribution. A participating
20    employee may establish creditable service for the
21    remainder of the period of prior service with that employer
22    by making an application in writing, accompanied by payment
23    of an employee contribution in an amount determined by the
24    Fund, based on the employee contribution rates in effect at
25    the time of application for the creditable service and the
26    employee's salary rate on the effective date of

 

 

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1    participation for that employer, plus interest at the
2    effective rate from the date of the prior service to the
3    date of payment. Application for this creditable service
4    may be made at any time while the employee is still in
5    service.
6        A municipality that (i) has at least 35 employees; (ii)
7    is located in a county with at least 2,000,000 inhabitants;
8    and (iii) maintains an independent defined benefit pension
9    plan for the benefit of its eligible employees may restrict
10    creditable service in whole or in part for periods of prior
11    service with the employer if the governing body of the
12    municipality adopts an irrevocable resolution to restrict
13    that creditable service and files the resolution with the
14    board before the municipality's effective date of
15    participation.
16        Any person who has withdrawn from the service of a
17    participating municipality or participating
18    instrumentality prior to the effective date, who reenters
19    the service of the same municipality or participating
20    instrumentality after the effective date and becomes a
21    participating employee is entitled to creditable service
22    for prior service as otherwise provided in this subdivision
23    (a)(1) only if he or she renders 2 years of service as a
24    participating employee after the effective date.
25    Application for such service must be made while in a
26    participating status. The salary rate to be used in the

 

 

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1    calculation of the required employee contribution, if any,
2    shall be the employee's salary rate at the time of first
3    reentering service with the employer after the employer's
4    effective date of participation.
5        2. For current service, each participating employee
6    shall be credited with:
7            a. Additional credits of amounts equal to each
8        payment of additional contributions received from him
9        under Section 7-173, as of the date the corresponding
10        payment of earnings is payable to him.
11            b. Normal credits of amounts equal to each payment
12        of normal contributions received from him, as of the
13        date the corresponding payment of earnings is payable
14        to him, and normal contributions made for the purpose
15        of establishing out-of-state service credits as
16        permitted under the conditions set forth in paragraph 6
17        of this subsection (a).
18            c. Municipality credits in an amount equal to 1.4
19        times the normal credits, except those established by
20        out-of-state service credits, as of the date of
21        computation of any benefit if these credits would
22        increase the benefit.
23            d. Survivor credits equal to each payment of
24        survivor contributions received from the participating
25        employee as of the date the corresponding payment of
26        earnings is payable, and survivor contributions made

 

 

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1        for the purpose of establishing out-of-state service
2        credits.
3        3. For periods of temporary and total and permanent
4    disability benefits, each employee receiving disability
5    benefits shall be granted creditable service for the period
6    during which disability benefits are payable. Normal and
7    survivor credits, based upon the rate of earnings applied
8    for disability benefits, shall also be granted if such
9    credits would result in a higher benefit to any such
10    employee or his beneficiary.
11        4. For authorized leave of absence without pay: A
12    participating employee shall be granted credits and
13    creditable service for periods of authorized leave of
14    absence without pay under the following conditions:
15            a. An application for credits and creditable
16        service is submitted to the board while the employee is
17        in a status of active employment.
18            b. Not more than 12 complete months of creditable
19        service for authorized leave of absence without pay
20        shall be counted for purposes of determining any
21        benefits payable under this Article.
22            c. Credits and creditable service shall be granted
23        for leave of absence only if such leave is approved by
24        the governing body of the municipality, including
25        approval of the estimated cost thereof to the
26        municipality as determined by the fund, and employee

 

 

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1        contributions, plus interest at the effective rate
2        applicable for each year from the end of the period of
3        leave to date of payment, have been paid to the fund in
4        accordance with Section 7-173. The contributions shall
5        be computed upon the assumption earnings continued
6        during the period of leave at the rate in effect when
7        the leave began.
8            d. Benefits under the provisions of Sections
9        7-141, 7-146, 7-150 and 7-163 shall become payable to
10        employees on authorized leave of absence, or their
11        designated beneficiary, only if such leave of absence
12        is creditable hereunder, and if the employee has at
13        least one year of creditable service other than the
14        service granted for leave of absence. Any employee
15        contributions due may be deducted from any benefits
16        payable.
17            e. No credits or creditable service shall be
18        allowed for leave of absence without pay during any
19        period of prior service.
20        5. For military service: The governing body of a
21    municipality or participating instrumentality may elect to
22    allow creditable service to participating employees who
23    leave their employment to serve in the armed forces of the
24    United States for all periods of such service, provided
25    that the person returns to active employment within 90 days
26    after completion of full time active duty, but no

 

 

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1    creditable service shall be allowed such person for any
2    period that can be used in the computation of a pension or
3    any other pay or benefit, other than pay for active duty,
4    for service in any branch of the armed forces of the United
5    States. If necessary to the computation of any benefit, the
6    board shall establish municipality credits for
7    participating employees under this paragraph on the
8    assumption that the employee received earnings at the rate
9    received at the time he left the employment to enter the
10    armed forces. A participating employee in the armed forces
11    shall not be considered an employee during such period of
12    service and no additional death and no disability benefits
13    are payable for death or disability during such period.
14        Any participating employee who left his employment
15    with a municipality or participating instrumentality to
16    serve in the armed forces of the United States and who
17    again became a participating employee within 90 days after
18    completion of full time active duty by entering the service
19    of a different municipality or participating
20    instrumentality, which has elected to allow creditable
21    service for periods of military service under the preceding
22    paragraph, shall also be allowed creditable service for his
23    period of military service on the same terms that would
24    apply if he had been employed, before entering military
25    service, by the municipality or instrumentality which
26    employed him after he left the military service and the

 

 

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1    employer costs arising in relation to such grant of
2    creditable service shall be charged to and paid by that
3    municipality or instrumentality.
4        Notwithstanding the foregoing, any participating
5    employee shall be entitled to creditable service as
6    required by any federal law relating to re-employment
7    rights of persons who served in the United States Armed
8    Services. Such creditable service shall be granted upon
9    payment by the member of an amount equal to the employee
10    contributions which would have been required had the
11    employee continued in service at the same rate of earnings
12    during the military leave period, plus interest at the
13    effective rate.
14        5.1. In addition to any creditable service established
15    under paragraph 5 of this subsection (a), creditable
16    service may be granted for up to 48 months of service in
17    the armed forces of the United States.
18        In order to receive creditable service for military
19    service under this paragraph 5.1, a participating employee
20    must (1) apply to the Fund in writing and provide evidence
21    of the military service that is satisfactory to the Board;
22    (2) obtain the written approval of the current employer;
23    and (3) make contributions to the Fund equal to (i) the
24    employee contributions that would have been required had
25    the service been rendered as a member, plus (ii) an amount
26    determined by the board to be equal to the employer's

 

 

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1    normal cost of the benefits accrued for that military
2    service, plus (iii) interest on items (i) and (ii) from the
3    date of first membership in the Fund to the date of
4    payment. The required interest shall be calculated at the
5    regular interest rate.
6        The changes made to this paragraph 5.1 by Public Acts
7    95-483 and 95-486 apply only to participating employees in
8    service on or after August 28, 2007 (the effective date of
9    those Public Acts).
10        6. For out-of-state service: Creditable service shall
11    be granted for service rendered to an out-of-state local
12    governmental body under the following conditions: The
13    employee had participated and has irrevocably forfeited
14    all rights to benefits in the out-of-state public employees
15    pension system; the governing body of his participating
16    municipality or instrumentality authorizes the employee to
17    establish such service; the employee has 2 years current
18    service with this municipality or participating
19    instrumentality; the employee makes a payment of
20    contributions, which shall be computed at 8% (normal) plus
21    2% (survivor) times length of service purchased times the
22    average rate of earnings for the first 2 years of service
23    with the municipality or participating instrumentality
24    whose governing body authorizes the service established
25    plus interest at the effective rate on the date such
26    credits are established, payable from the date the employee

 

 

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1    completes the required 2 years of current service to date
2    of payment. In no case shall more than 120 months of
3    creditable service be granted under this provision.
4        7. For retroactive service: Any employee who could have
5    but did not elect to become a participating employee, or
6    who should have been a participant in the Municipal Public
7    Utilities Annuity and Benefit Fund before that fund was
8    superseded, may receive creditable service for the period
9    of service not to exceed 50 months; however, a current or
10    former elected or appointed official of a participating
11    municipality may establish credit under this paragraph 7
12    for more than 50 months of service as an official of that
13    municipality, if the excess over 50 months is approved by
14    resolution of the governing body of the affected
15    municipality filed with the Fund before January 1, 2002.
16        Any employee who is a participating employee on or
17    after September 24, 1981 and who was excluded from
18    participation by the age restrictions removed by Public Act
19    82-596 may receive creditable service for the period, on or
20    after January 1, 1979, excluded by the age restriction and,
21    in addition, if the governing body of the participating
22    municipality or participating instrumentality elects to
23    allow creditable service for all employees excluded by the
24    age restriction prior to January 1, 1979, for service
25    during the period prior to that date excluded by the age
26    restriction. Any employee who was excluded from

 

 

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1    participation by the age restriction removed by Public Act
2    82-596 and who is not a participating employee on or after
3    September 24, 1981 may receive creditable service for
4    service after January 1, 1979. Creditable service under
5    this paragraph shall be granted upon payment of the
6    employee contributions which would have been required had
7    he participated, with interest at the effective rate for
8    each year from the end of the period of service established
9    to date of payment.
10        8. For accumulated unused sick leave: A participating
11    employee who is applying for a retirement annuity shall be
12    entitled to creditable service for that portion of the
13    employee's accumulated unused sick leave for which payment
14    is not received, as follows:
15            a. Sick leave days shall be limited to those
16        accumulated under a sick leave plan established by a
17        participating municipality or participating
18        instrumentality which is available to all employees or
19        a class of employees.
20            b. Except as provided in item b-1, only sick leave
21        days accumulated with a participating municipality or
22        participating instrumentality with which the employee
23        was in service within 60 days of the effective date of
24        his retirement annuity shall be credited; If the
25        employee was in service with more than one employer
26        during this period only the sick leave days with the

 

 

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1        employer with which the employee has the greatest
2        number of unpaid sick leave days shall be considered.
3            b-1. If the employee was in the service of more
4        than one employer as defined in item (2) of paragraph
5        (a) of subsection (A) of Section 7-132, then the sick
6        leave days from all such employers shall be credited,
7        as long as the creditable service attributed to those
8        sick leave days does not exceed the limitation in item
9        f of this paragraph 8. In calculating the creditable
10        service under this item b-1, the sick leave days from
11        the last employer shall be considered first, then the
12        remaining sick leave days shall be considered until
13        there are no more days or the maximum creditable sick
14        leave threshold under item f of this paragraph 8 has
15        been reached.
16            c. The creditable service granted shall be
17        considered solely for the purpose of computing the
18        amount of the retirement annuity and shall not be used
19        to establish any minimum service period required by any
20        provision of the Illinois Pension Code, the effective
21        date of the retirement annuity, or the final rate of
22        earnings.
23            d. The creditable service shall be at the rate of
24        1/20 of a month for each full sick day, provided that
25        no more than 12 months may be credited under this
26        subdivision 8.

 

 

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1            e. Employee contributions shall not be required
2        for creditable service under this subdivision 8.
3            f. Each participating municipality and
4        participating instrumentality with which an employee
5        has service within 60 days of the effective date of his
6        retirement annuity shall certify to the board the
7        number of accumulated unpaid sick leave days credited
8        to the employee at the time of termination of service.
9        9. For service transferred from another system:
10    Credits and creditable service shall be granted for service
11    under Article 4, 5, 8, 14, or 16 of this Act, to any active
12    member of this Fund, and to any inactive member who has
13    been a county sheriff, upon transfer of such credits
14    pursuant to Section 4-108.3, 5-235, 8-226.7, 14-105.6, or
15    16-131.4, and payment by the member of the amount by which
16    (1) the employer and employee contributions that would have
17    been required if he had participated in this Fund as a
18    sheriff's law enforcement employee during the period for
19    which credit is being transferred, plus interest thereon at
20    the effective rate for each year, compounded annually, from
21    the date of termination of the service for which credit is
22    being transferred to the date of payment, exceeds (2) the
23    amount actually transferred to the Fund. Such transferred
24    service shall be deemed to be service as a sheriff's law
25    enforcement employee for the purposes of Section 7-142.1.
26        10. (Blank).

 

 

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1        11. For service transferred from an Article 3 system
2    under Section 3-110.3: Credits and creditable service
3    shall be granted for service under Article 3 of this Act as
4    provided in Section 3-110.3, to any active member of this
5    Fund, upon transfer of such credits pursuant to Section
6    3-110.3. If the board determines that the amount
7    transferred is less than the true cost to the Fund of
8    allowing that creditable service to be established, then in
9    order to establish that creditable service, the member must
10    pay to the Fund an additional contribution equal to the
11    difference, as determined by the board in accordance with
12    the rules and procedures adopted under this paragraph. If
13    the member does not make the full additional payment as
14    required by this paragraph prior to termination of his
15    participation with that employer, then his or her
16    creditable service shall be reduced by an amount equal to
17    the difference between the amount transferred under
18    Section 3-110.3, including any payments made by the member
19    under this paragraph prior to termination, and the true
20    cost to the Fund of allowing that creditable service to be
21    established, as determined by the board in accordance with
22    the rules and procedures adopted under this paragraph.
23        The board shall establish by rule the manner of making
24    the calculation required under this paragraph 11, taking
25    into account the appropriate actuarial assumptions; the
26    member's service, age, and salary history, and any other

 

 

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1    factors that the board determines to be relevant.
2        12. For omitted service: Any employee who was employed
3    by a participating employer in a position that required
4    participation, but who was not enrolled in the Fund, may
5    establish such credits under the following conditions:
6            a. Application for such credits is received by the
7        Board while the employee is an active participant of
8        the Fund or a reciprocal retirement system.
9            b. Eligibility for participation and earnings are
10        verified by the Authorized Agent of the participating
11        employer for which the service was rendered.
12        Creditable service under this paragraph shall be
13    granted upon payment of the employee contributions that
14    would have been required had he participated, which shall
15    be calculated by the Fund using the member contribution
16    rate in effect during the period that the service was
17    rendered.
18    (b) Creditable service - amount:
19        1. One month of creditable service shall be allowed for
20    each month for which a participating employee made
21    contributions as required under Section 7-173, or for which
22    creditable service is otherwise granted hereunder. Not
23    more than 1 month of service shall be credited and counted
24    for 1 calendar month, and not more than 1 year of service
25    shall be credited and counted for any calendar year. A
26    calendar month means a nominal month beginning on the first

 

 

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1    day thereof, and a calendar year means a year beginning
2    January 1 and ending December 31.
3        2. A seasonal employee shall be given 12 months of
4    creditable service if he renders the number of months of
5    service normally required by the position in a 12-month
6    period and he remains in service for the entire 12-month
7    period. Otherwise a fractional year of service in the
8    number of months of service rendered shall be credited.
9        3. An intermittent employee shall be given creditable
10    service for only those months in which a contribution is
11    made under Section 7-173.
12    (c) No application for correction of credits or creditable
13service shall be considered unless the board receives an
14application for correction while (1) the applicant is a
15participating employee and in active employment with a
16participating municipality or instrumentality, or (2) while
17the applicant is actively participating in a pension fund or
18retirement system which is a participating system under the
19Retirement Systems Reciprocal Act. A participating employee or
20other applicant shall not be entitled to credits or creditable
21service unless the required employee contributions are made in
22a lump sum or in installments made in accordance with board
23rule. Payments made to establish service credit under paragraph
241, 4, 5, 5.1, 6, 7, or 12 of subsection (a) of this Section must
25be received by the Board while the applicant is an active
26participant in the Fund or a reciprocal retirement system,

 

 

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1except that an applicant may make one payment after termination
2of active participation in the Fund or a reciprocal retirement
3system.
4    (d) Upon the granting of a retirement, surviving spouse or
5child annuity, a death benefit or a separation benefit, on
6account of any employee, all individual accumulated credits
7shall thereupon terminate. Upon the withdrawal of additional
8contributions, the credits applicable thereto shall thereupon
9terminate. Terminated credits shall not be applied to increase
10the benefits any remaining employee would otherwise receive
11under this Article.
12(Source: P.A. 97-415, eff. 8-16-11; 98-439, eff. 8-16-13;
1398-932, eff. 8-15-14.)
 
14    (40 ILCS 5/7-139.2)  (from Ch. 108 1/2, par. 7-139.2)
15    Sec. 7-139.2. Validation of service credits. An active
16member of the General Assembly having no service credits or
17creditable service in the Fund, may establish service credit
18and creditable service for periods during which he was an
19employee of a municipality in an elective office and could have
20elected to participate in the Fund but did not so elect.
21Service credits and creditable service may be established by
22payment to the Fund of an amount equal to the contributions he
23would have made if he had elected to participate plus interest
24to the date of payment, together with the applicable
25municipality credits including interest, but the total period

 

 

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1of such creditable service that may be validated shall not
2exceed 8 years. Payments made to establish such service credit
3must be received by the Board while the member is an active
4participant in the General Assembly Retirement System, except
5that one payment will be permitted after the member terminates
6such service.
7(Source: P.A. 81-1536.)
 
8    (40 ILCS 5/7-142.1)  (from Ch. 108 1/2, par. 7-142.1)
9    Sec. 7-142.1. Sheriff's law enforcement employees.
10    (a) In lieu of the retirement annuity provided by
11subparagraph 1 of paragraph (a) of Section 7-142:
12    Any sheriff's law enforcement employee who has 20 or more
13years of service in that capacity and who terminates service
14prior to January 1, 1988 shall be entitled at his option to
15receive a monthly retirement annuity for his service as a
16sheriff's law enforcement employee computed by multiplying 2%
17for each year of such service up to 10 years, 2 1/4% for each
18year of such service above 10 years and up to 20 years, and 2
191/2% for each year of such service above 20 years, by his
20annual final rate of earnings and dividing by 12.
21    Any sheriff's law enforcement employee who has 20 or more
22years of service in that capacity and who terminates service on
23or after January 1, 1988 and before July 1, 2004 shall be
24entitled at his option to receive a monthly retirement annuity
25for his service as a sheriff's law enforcement employee

 

 

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1computed by multiplying 2.5% for each year of such service up
2to 20 years, 2% for each year of such service above 20 years
3and up to 30 years, and 1% for each year of such service above
430 years, by his annual final rate of earnings and dividing by
512.
6    Any sheriff's law enforcement employee who has 20 or more
7years of service in that capacity and who terminates service on
8or after July 1, 2004 shall be entitled at his or her option to
9receive a monthly retirement annuity for service as a sheriff's
10law enforcement employee computed by multiplying 2.5% for each
11year of such service by his annual final rate of earnings and
12dividing by 12.
13    If a sheriff's law enforcement employee has service in any
14other capacity, his retirement annuity for service as a
15sheriff's law enforcement employee may be computed under this
16Section and the retirement annuity for his other service under
17Section 7-142.
18    In no case shall the total monthly retirement annuity for
19persons who retire before July 1, 2004 exceed 75% of the
20monthly final rate of earnings. In no case shall the total
21monthly retirement annuity for persons who retire on or after
22July 1, 2004 exceed 80% of the monthly final rate of earnings.
23    (b) Whenever continued group insurance coverage is elected
24in accordance with the provisions of Section 367h of the
25Illinois Insurance Code, as now or hereafter amended, the total
26monthly premium for such continued group insurance coverage or

 

 

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1such portion thereof as is not paid by the municipality shall,
2upon request of the person electing such continued group
3insurance coverage, be deducted from any monthly pension
4benefit otherwise payable to such person pursuant to this
5Section, to be remitted by the Fund to the insurance company or
6other entity providing the group insurance coverage.
7    (c) A sheriff's law enforcement employee who began service
8in that capacity prior to the effective date of this amendatory
9Act of the 97th General Assembly and who has service in any
10other capacity may convert up to 10 years of that service into
11service as a sheriff's law enforcement employee by paying to
12the Fund an amount equal to (1) the additional employee
13contribution required under Section 7-173.1, plus (2) the
14additional employer contribution required under Section 7-172,
15plus (3) interest on items (1) and (2) at the prescribed rate
16from the date of the service to the date of payment.
17Application must be received by the Board while the employee is
18an active participant in the Fund. Payment must be received
19while the member is an active participant, except that one
20payment will be permitted after termination of participation.
21    (d) The changes to subsections (a) and (b) of this Section
22made by this amendatory Act of the 94th General Assembly apply
23only to persons in service on or after July 1, 2004. In the
24case of such a person who begins to receive a retirement
25annuity before the effective date of this amendatory Act of the
2694th General Assembly, the annuity shall be recalculated

 

 

09900SB2362sam002- 21 -LRB099 17070 RPS 45887 a

1prospectively to reflect those changes, with the resulting
2increase beginning to accrue on the first annuity payment date
3following the effective date of this amendatory Act.
4    (e) Any elected county officer who was entitled to receive
5a stipend from the State on or after July 1, 2009 and on or
6before June 30, 2010 may establish earnings credit for the
7amount of stipend not received, if the elected county official
8applies in writing to the fund within 6 months after the
9effective date of this amendatory Act of the 96th General
10Assembly and pays to the fund an amount equal to (i) employee
11contributions on the amount of stipend not received, (ii)
12employer contributions determined by the Board equal to the
13employer's normal cost of the benefit on the amount of stipend
14not received, plus (iii) interest on items (i) and (ii) at the
15actuarially assumed rate.
16    (f) Notwithstanding any other provision of this Article,
17the provisions of this subsection (f) apply to a person who
18first becomes a sheriff's law enforcement employee under this
19Article on or after January 1, 2011.
20    A sheriff's law enforcement employee age 55 or more who has
2110 or more years of service in that capacity shall be entitled
22at his option to receive a monthly retirement annuity for his
23or her service as a sheriff's law enforcement employee computed
24by multiplying 2.5% for each year of such service by his or her
25final rate of earnings.
26    The retirement annuity of a sheriff's law enforcement

 

 

09900SB2362sam002- 22 -LRB099 17070 RPS 45887 a

1employee who is retiring after attaining age 50 with 10 or more
2years of creditable service shall be reduced by one-half of 1%
3for each month that the sheriff's law enforcement employee's
4age is under age 55.
5    The maximum retirement annuity under this subsection (f)
6shall be 75% of final rate of earnings.
7    For the purposes of this subsection (f), "final rate of
8earnings" means the average monthly earnings obtained by
9dividing the total salary of the sheriff's law enforcement
10employee during the 96 consecutive months of service within the
11last 120 months of service in which the total earnings was the
12highest by the number of months of service in that period.
13    Notwithstanding any other provision of this Article,
14beginning on January 1, 2011, for all purposes under this Code
15(including without limitation the calculation of benefits and
16employee contributions), the annual earnings of a sheriff's law
17enforcement employee to whom this Section applies shall not
18include overtime and shall not exceed $106,800; however, that
19amount shall annually thereafter be increased by the lesser of
20(i) 3% of that amount, including all previous adjustments, or
21(ii) one-half the annual unadjusted percentage increase (but
22not less than zero) in the consumer price index-u for the 12
23months ending with the September preceding each November 1,
24including all previous adjustments.
25    (g) Notwithstanding any other provision of this Article,
26the monthly annuity of a person who first becomes a sheriff's

 

 

09900SB2362sam002- 23 -LRB099 17070 RPS 45887 a

1law enforcement employee under this Article on or after January
21, 2011 shall be increased on the January 1 occurring either on
3or after the attainment of age 60 or the first anniversary of
4the annuity start date, whichever is later. Each annual
5increase shall be calculated at 3% or one-half the annual
6unadjusted percentage increase (but not less than zero) in the
7consumer price index-u for the 12 months ending with the
8September preceding each November 1, whichever is less, of the
9originally granted retirement annuity. If the annual
10unadjusted percentage change in the consumer price index-u for
11a 12-month period ending in September is zero or, when compared
12with the preceding period, decreases, then the annuity shall
13not be increased.
14    (h) Notwithstanding any other provision of this Article,
15for a person who first becomes a sheriff's law enforcement
16employee under this Article on or after January 1, 2011, the
17annuity to which the surviving spouse, children, or parents are
18entitled under this subsection (h) shall be in the amount of 66
192/3% of the sheriff's law enforcement employee's earned annuity
20at the date of death.
21    (i) Notwithstanding any other provision of this Article,
22the monthly annuity of a survivor of a person who first becomes
23a sheriff's law enforcement employee under this Article on or
24after January 1, 2011 shall be increased on the January 1 after
25attainment of age 60 by the recipient of the survivor's annuity
26and each January 1 thereafter by 3% or one-half the annual

 

 

09900SB2362sam002- 24 -LRB099 17070 RPS 45887 a

1unadjusted percentage increase in the consumer price index-u
2for the 12 months ending with the September preceding each
3November 1, whichever is less, of the originally granted
4pension. If the annual unadjusted percentage change in the
5consumer price index-u for a 12-month period ending in
6September is zero or, when compared with the preceding period,
7decreases, then the annuity shall not be increased.
8    (j) For the purposes of this Section, "consumer price
9index-u" means the index published by the Bureau of Labor
10Statistics of the United States Department of Labor that
11measures the average change in prices of goods and services
12purchased by all urban consumers, United States city average,
13all items, 1982-84 = 100. The new amount resulting from each
14annual adjustment shall be determined by the Public Pension
15Division of the Department of Insurance and made available to
16the boards of the pension funds.
17(Source: P.A. 96-961, eff. 7-2-10; 96-1495, eff. 1-1-11;
1897-272, eff. 8-8-11; 97-609, eff. 8-26-11.)
 
19    (40 ILCS 5/7-145.1)
20    Sec. 7-145.1. Alternative annuity for county officers.
21    (a) The benefits provided in this Section and Section
227-145.2 are available only if, prior to the effective date of
23this amendatory Act of the 97th General Assembly, the county
24board has filed with the Board of the Fund a resolution or
25ordinance expressly consenting to the availability of these

 

 

09900SB2362sam002- 25 -LRB099 17070 RPS 45887 a

1benefits for its elected county officers. The county board's
2consent is irrevocable with respect to persons participating in
3the program, but may be revoked at any time with respect to
4persons who have not paid an additional optional contribution
5under this Section before the date of revocation.
6    An elected county officer may elect to establish
7alternative credits for an alternative annuity by electing in
8writing before the effective date of this amendatory Act of the
997th General Assembly to make additional optional
10contributions in accordance with this Section and procedures
11established by the board. These alternative credits are
12available only for periods of service as an elected county
13officer. The elected county officer may discontinue making the
14additional optional contributions by notifying the Fund in
15writing in accordance with this Section and procedures
16established by the board.
17    Additional optional contributions for the alternative
18annuity shall be as follows:
19        (1) For service as an elected county officer after the
20    option is elected, an additional contribution of 3% of
21    salary shall be contributed to the Fund on the same basis
22    and under the same conditions as contributions required
23    under Section 7-173.
24        (2) For service as an elected county officer before the
25    option is elected, an additional contribution of 3% of the
26    salary for the applicable period of service, plus interest

 

 

09900SB2362sam002- 26 -LRB099 17070 RPS 45887 a

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

 

 

09900SB2362sam002- 27 -LRB099 17070 RPS 45887 a

1date of refund to the date of repayment.
2    (b) In lieu of the retirement annuity otherwise payable
3under this Article, an elected county officer who (1) has
4elected to participate in the Fund and make additional optional
5contributions in accordance with this Section, (2) has held and
6made additional optional contributions with respect to the same
7elected county office for at least 8 years, and (3) has
8attained age 55 with at least 8 years of service credit (or has
9attained age 50 with at least 20 years of service as a
10sheriff's law enforcement employee) may elect to have his
11retirement annuity computed as follows: 3% of the participant's
12salary for each of the first 8 years of service credit, plus 4%
13of that salary for each of the next 4 years of service credit,
14plus 5% of that salary for each year of service credit in
15excess of 12 years, subject to a maximum of 80% of that salary.
16    This formula applies only to service in an elected county
17office that the officer held for at least 8 years, and only to
18service for which additional optional contributions have been
19paid under this Section. If an elected county officer qualifies
20to have this formula applied to service in more than one
21elected county office, the qualifying service shall be
22accumulated for purposes of determining the applicable accrual
23percentages, but the salary used for each office shall be the
24separate salary calculated for that office, as defined in
25subsection (g).
26    To the extent that the elected county officer has service

 

 

09900SB2362sam002- 28 -LRB099 17070 RPS 45887 a

1credit that does not qualify for this formula, his retirement
2annuity will first be determined in accordance with this
3formula with respect to the service to which this formula
4applies, and then in accordance with the remaining Sections of
5this Article with respect to the service to which this formula
6does not apply.
7    (c) In lieu of the disability benefits otherwise payable
8under this Article, an elected county officer who (1) has
9elected to participate in the Fund, and (2) has become
10permanently disabled and as a consequence is unable to perform
11the duties of his office, and (3) was making optional
12contributions in accordance with this Section at the time the
13disability was incurred, may elect to receive a disability
14annuity calculated in accordance with the formula in subsection
15(b). For the purposes of this subsection, an elected county
16officer shall be considered permanently disabled only if: (i)
17disability occurs while in service as an elected county officer
18and is of such a nature as to prevent him from reasonably
19performing the duties of his office at the time; and (ii) the
20board has received a written certification by at least 2
21licensed physicians appointed by it stating that the officer is
22disabled and that the disability is likely to be permanent.
23    (d) Refunds of additional optional contributions shall be
24made on the same basis and under the same conditions as
25provided under Section 7-166, 7-167 and 7-168. Interest shall
26be credited at the effective rate on the same basis and under

 

 

09900SB2362sam002- 29 -LRB099 17070 RPS 45887 a

1the same conditions as for other contributions.
2    If an elected county officer fails to hold that same
3elected county office for at least 8 years, he or she shall be
4entitled after leaving office to receive a refund of the
5additional optional contributions made with respect to that
6office, plus interest at the effective rate.
7    (e) The plan of optional alternative benefits and
8contributions shall be available to persons who are elected
9county officers and active contributors to the Fund on or after
10November 15, 1994 and elected to establish alternative credit
11before the effective date of this amendatory Act of the 97th
12General Assembly. A person who was an elected county officer
13and an active contributor to the Fund on November 15, 1994 but
14is no longer an active contributor may apply to make additional
15optional contributions under this Section at any time within 90
16days after the effective date of this amendatory Act of 1997;
17if the person is an annuitant, the resulting increase in
18annuity shall begin to accrue on the first day of the month
19following the month in which the required payment is received
20by the Fund.
21    (f) For the purposes of this Section and Section 7-145.2,
22the terms "elected county officer" and "elected county office"
23include, but are not limited to: (1) the county clerk,
24recorder, treasurer, coroner, assessor (if elected), auditor,
25sheriff, and State's Attorney; members of the county board; and
26the clerk of the circuit court; and (2) a person who has been

 

 

09900SB2362sam002- 30 -LRB099 17070 RPS 45887 a

1appointed to fill a vacancy in an office that is normally
2filled by election on a countywide basis, for the duration of
3his or her service in that office. The terms "elected county
4officer" and "elected county office" do not include any officer
5or office of a county that has not consented to the
6availability of benefits under this Section and Section
77-145.2.
8    (g) For the purposes of this Section and Section 7-145.2,
9the term "salary" means the final rate of earnings for the
10elected county office held, calculated in a manner consistent
11with Section 7-116, but for that office only. If an elected
12county officer qualifies to have the formula in subsection (b)
13applied to service in more than one elected county office, a
14separate salary shall be calculated and applied with respect to
15each such office.
16    (h) The changes to this Section made by this amendatory Act
17of the 91st General Assembly apply to persons who first make an
18additional optional contribution under this Section on or after
19the effective date of this amendatory Act.
20    (i) Any elected county officer who was entitled to receive
21a stipend from the State on or after July 1, 2009 and on or
22before June 30, 2010 may establish earnings credit for the
23amount of stipend not received, if the elected county official
24applies in writing to the fund within 6 months after the
25effective date of this amendatory Act of the 96th General
26Assembly and pays to the fund an amount equal to (i) employee

 

 

09900SB2362sam002- 31 -LRB099 17070 RPS 45887 a

1contributions on the amount of stipend not received, (ii)
2employer contributions determined by the Board equal to the
3employer's normal cost of the benefit on the amount of stipend
4not received, plus (iii) interest on items (i) and (ii) at the
5actuarially assumed rate.
6(Source: P.A. 96-961, eff. 7-2-10; 97-272, eff. 8-8-11; 97-609,
7eff. 8-26-11.)
 
8    (40 ILCS 5/7-169)  (from Ch. 108 1/2, par. 7-169)
9    Sec. 7-169. Separation benefits; repayments.
10    (a) If an employee who has received a separation benefit
11subsequently becomes a participating employee, and renders at
12least 2 years of contributing service from the date of such
13re-entry, he may pay to the fund the amount of the separation
14benefit, plus interest at the effective rate for each year from
15the date of payment of the separation benefit to the date of
16repayment. Upon payment his creditable service shall be
17reinstated and the payment shall be credited to his account as
18normal contributions. Application must be received by the Board
19while the employee is an active participant in the Fund or a
20reciprocal retirement system. Payment must be received while
21the member is an active participant, except that one payment
22will be permitted after termination of participation in the
23Fund or a reciprocal retirement system.
24     (b) Beginning July 1, 2004, the requirement of returning
25to service for at least 2 years does not apply to persons who

 

 

09900SB2362sam002- 32 -LRB099 17070 RPS 45887 a

1return to service as a sheriff's law enforcement employee. This
2subsection applies only to persons in service on or after July
31, 2004. In the case of such a person who begins to receive a
4retirement annuity before the effective date of this amendatory
5Act of the 94th General Assembly, the annuity shall be
6recalculated prospectively to reflect any credits reinstated
7as a result of this subsection, with the resulting increase in
8annuity beginning to accrue on the first annuity payment date
9following the effective date of this amendatory Act, but not
10earlier than the date the repayment is received by the Fund.
11(Source: P.A. 94-712, eff. 6-1-06.)
 
12    (40 ILCS 5/14-123)  (from Ch. 108 1/2, par. 14-123)
13    Sec. 14-123. Occupational disability benefits. A member
14who becomes incapacitated to perform the duties of his position
15as the proximate result of bodily injuries sustained or a
16hazard undergone while in the performance and within the scope
17of the member's duties, shall receive an occupational
18disability benefit; provided:
19        (a) application is made within 12 months after the date
20    that such disability results in the loss of pay, or 12
21    months after the date that the Illinois Workers'
22    Compensation Commission rules on the application for an
23    occupational disability, or 12 months after the occurrence
24    of disablement if an occupational disease; and
25        (b) proper proof is received from one or more licensed

 

 

09900SB2362sam002- 33 -LRB099 17070 RPS 45887 a

1    healthcare practitioners physicians designated by the
2    Board certifying that the member is mentally or physically
3    incapacitated; and .
4        (c) the Board may waive the application deadline
5    requirement as prescribed under item (a) of this Section
6    and the benefit shall be payable retroactive to the date
7    that the participant attained the eligibility criteria for
8    the benefit provided by this Section.
9    The benefit shall be 75% of the member's final average
10compensation at date of disability and shall be payable until
11the first of the following dates occurs:
12        (1) the date on which disability ceases;
13        (2) the date on which the member engages in gainful
14    employment;
15        (3) the end of the month in which the member attains
16    age 65, in the case of benefits commencing prior to
17    attainment of age 60;
18        (4) the end of the month following the fifth
19    anniversary of the effective date of the benefit, or of the
20    temporary disability benefit if one was received, in the
21    case of benefits commencing on or after attainment of age
22    60; or
23        (5) the end of the month in which the death of the
24    member occurs.
25    At the end of the month in which the benefits cease as
26prescribed in paragraphs (3) or (4) above, if the member is

 

 

09900SB2362sam002- 34 -LRB099 17070 RPS 45887 a

1still disabled, he shall become entitled to a retirement
2annuity and the minimum period of service prescribed for the
3receipt of such annuity shall be waived.
4    In the event that a temporary disability benefit has been
5received, the benefit paid under this Section shall be subject
6to adjustment by the Board under Section 14-123.1.
7    The Board shall prescribe rules and regulations governing
8the filing of claims for occupational disability benefits, and
9the investigation, control and supervision of such claims.
10(Source: P.A. 93-721, eff. 1-1-05.)
 
11    (40 ILCS 5/14-123.1)  (from Ch. 108 1/2, par. 14-123.1)
12    Sec. 14-123.1. Temporary disability benefit.
13    (a) A member who has at least 18 months of creditable
14service and who becomes physically or mentally incapacitated to
15perform the duties of his position shall receive a temporary
16disability benefit, provided that:
17        (1) the agency responsible for determining the
18    liability of the State (i) has formally denied all
19    employer-paid temporary total disability benefits under
20    the Workers' Compensation Act or the Workers' Occupational
21    Diseases Act and an appeal of that denial is pending before
22    the Illinois Workers' Compensation Commission, or (ii) has
23    granted and then terminated for any reason an employer-paid
24    temporary total disability benefit and the member has filed
25    a petition for a emergency hearing under Section 19(b) or

 

 

09900SB2362sam002- 35 -LRB099 17070 RPS 45887 a

1    Section 19(b-1) of the Workers' Compensation Act or Section
2    19(b) or Section 19(b-1) of the Workers' Occupational
3    Diseases Act; and
4        (2) application is made not later than (i) 12 months
5    after the date that the disability results in loss of pay,
6    (ii) 12 months after the date the agency responsible for
7    determining the liability of the State under the Workers'
8    Compensation Act or Workers' Occupational Diseases Act has
9    formally denied or terminated the employer-paid temporary
10    total disability benefit, or (iii) in the case of
11    termination of an employer-paid temporary total disability
12    benefit, 12 months after the effective date of this
13    amendatory Act of 1995, whichever occurs last; and
14        (3) proper proof is received from one or more licensed
15    healthcare practitioners physicians designated by the
16    Board certifying that the member is mentally or physically
17    incapacitated; and .
18        (4) the Board may waive the application deadline
19    requirement as prescribed under item (2) of this subsection
20    and the benefit shall be payable retroactive to the date
21    that the participant attained the eligibility criteria for
22    the benefit provided by this Section.
23    (b) In the case of a denial of benefits, the temporary
24disability benefit shall begin to accrue on the 31st day of
25absence from work on account of disability, but the benefit
26shall not become actually payable to the member until the

 

 

09900SB2362sam002- 36 -LRB099 17070 RPS 45887 a

1expiration of 31 days from the day upon which the member last
2received or had a right to receive any compensation.
3    In the case of termination of an employer-paid temporary
4total disability benefit, the temporary disability benefit
5under this Section shall be calculated from the day following
6the date of termination of the employer-paid benefit or the
731st day of absence from work on account of disability,
8whichever is later, but shall not become payable to the member
9until (i) the member's right to an employer-paid temporary
10total disability benefit is denied as a result of the emergency
11hearing held under Section 19(b) or Section 19(b-1) of the
12Workers' Compensation Act or Section 19(b) or Section 19(b-1)
13of the Workers' Occupational Diseases Act or (ii) the
14expiration of 150 days from the date of termination of the
15employer-paid benefit, whichever occurs first. If a terminated
16employer-paid temporary total disability benefit is resumed or
17replaced with another employer-paid disability benefit and the
18resumed or replacement benefit is later terminated and the
19member again files a petition for a emergency hearing under
20Section 19(b) or Section 19(b-1) of the Workers' Compensation
21Act or Section 19(b) or Section 19(b-1) of the Workers'
22Occupational Diseases Act, the member may again become eligible
23to receive a temporary disability benefit under this Section.
24The waiting period before the temporary disability benefit
25under this Section becomes payable applies each time that the
26benefit is reinstated.

 

 

09900SB2362sam002- 37 -LRB099 17070 RPS 45887 a

1    The benefit shall continue to accrue until the first of the
2following events occurs:
3        (1) the disability ceases;
4        (2) the member engages in gainful employment;
5        (3) the end of the month in which the member attains
6    age 65, in the case of benefits commencing prior to
7    attainment of age 60;
8        (4) the end of the month following the fifth
9    anniversary of the effective date of the benefit in the
10    case of benefits commencing on or after attainment of age
11    60;
12        (5) the end of the month in which the death of the
13    member occurs;
14        (6) the end of the month in which the aggregate period
15    for which temporary disability payments have been made
16    becomes equal to 1/2 of the member's total period of
17    creditable service, not including the time for which he has
18    received a temporary disability benefit or nonoccupational
19    disability benefit; for purposes of this item (6) only, in
20    the case of a member to whom Section 14-108.2a or 14-108.2b
21    applies and who, at the time disability commences, is
22    performing services for the Illinois Department of Public
23    Health or the Department of State Police relating to the
24    transferred functions referred to in that Section and has
25    less than 10 years of creditable service under this
26    Article, the member's "total period of creditable service"

 

 

09900SB2362sam002- 38 -LRB099 17070 RPS 45887 a

1    shall be augmented by an amount equal to (i) one half of
2    the member's period of creditable service in the Fund
3    established under Article 8 (excluding any creditable
4    service over 20 years), minus (ii) the amount of the
5    member's creditable service under this Article;
6        (7) a payment is made on the member's claim pursuant to
7    a determination made by the agency responsible for
8    determining the liability of the State under the Workers'
9    Compensation Act or the Workers' Occupational Diseases
10    Act;
11        (8) a final determination is made on the member's claim
12    by the Illinois Workers' Compensation Commission.
13    (c) The temporary disability benefit shall be 50% of the
14member's final average compensation at the date of disability.
15    If a covered employee is eligible under the Social Security
16Act for a disability benefit before attaining the Social
17Security full retirement age 65, or a retirement benefit on or
18after attaining the Social Security full retirement age 65,
19then the amount of the member's temporary disability benefit
20shall be reduced by the amount of primary benefit the member is
21eligible to receive under the Social Security Act, whether or
22not such eligibility came about as the result of service as a
23covered employee under this Article. The Board may make such
24reduction pending a determination of eligibility if it appears
25that the employee may be so eligible, and shall make an
26appropriate adjustment if necessary after such determination

 

 

09900SB2362sam002- 39 -LRB099 17070 RPS 45887 a

1has been made. The amount of temporary disability benefit
2payable under this Article shall not be reduced by reason of
3any increase in benefits payable under the Social Security Act
4which occurs after the reduction required by this paragraph has
5been applied. For purposes of this subsection, "Social Security
6full retirement age" is the age at which an individual is
7eligible to receive full Social Security retirement benefits.
8    (d) The temporary disability benefit provided under this
9Section is intended as a temporary payment of occupational or
10nonoccupational disability benefit, whichever is appropriate,
11in cases in which the occupational or nonoccupational character
12of the disability has not been finally determined.
13    When an employer-paid disability benefit is paid or
14resumed, the Board shall calculate the benefit that is payable
15under Section 14-123 and shall deduct from the benefit payable
16under Section 14-123 the amounts already paid under this
17Section; those amounts shall then be treated as if they had
18been paid under Section 14-123.
19    When a final determination of the character of the
20disability has been made by the Illinois Workers' Compensation
21Commission, or by settlement between the parties to the
22disputed claim, the Board shall calculate the benefit that is
23payable under Section 14-123 or 14-124, whichever is
24applicable, and shall deduct from such benefit the amounts
25already paid under this Section; such amounts shall then be
26treated as if they had been paid under such Section 14-123 or

 

 

09900SB2362sam002- 40 -LRB099 17070 RPS 45887 a

114-124.
2    (e) Any excess benefits paid under this Section shall be
3subject to recovery by the System from benefits payable under
4the Workers' Compensation Act or the Workers' Occupational
5Diseases Act or from third parties as provided in Section
614-129, or from any other benefits payable either to the member
7or on his behalf under this Article. A member who accepts
8benefits under this Section acknowledges and authorizes these
9recovery rights of the System.
10    (f) Service credits under the State Universities
11Retirement System and the Teachers' Retirement System of the
12State of Illinois shall be considered for the purposes of
13determining temporary disability benefit eligibility under
14this Section, and for determining the total period of time for
15which such benefits are payable.
16    (g) The Board shall prescribe rules and regulations
17governing the filing of claims for temporary disability
18benefits, and the investigation, control and supervision of
19such claims.
20    (h) References in this Section to employer-paid benefits
21include benefits paid for by the State, either directly or
22through a program of insurance or self-insurance, whether paid
23through the member's own department or through some other
24department or entity; but the term does not include benefits
25paid by the System under this Article.
26(Source: P.A. 93-721, eff. 1-1-05.)
 

 

 

09900SB2362sam002- 41 -LRB099 17070 RPS 45887 a

1    (40 ILCS 5/14-124)  (from Ch. 108 1/2, par. 14-124)
2    Sec. 14-124. Nonoccupational disability benefit. A member
3with at least 1 1/2 years of creditable service may be granted
4a nonoccupational disability benefit, if:
5        (1) application for the benefit is made to the system
6    by the member in writing after the commencement of
7    disability;
8        (2) the member is found upon medical examination to be
9    mentally or physically incapacitated to perform the duties
10    of the member's position;
11        (3) the disability resulted from a cause other than an
12    injury or illness sustained in connection with the member's
13    performance of duty as a State employee;
14        (4) the member has been granted a leave of absence for
15    disability at the time of commencement of disability.
16    Renewal of a disability leave of absence shall not be
17    required for the continued payment of benefits; and
18        (5) the member has used all accumulated sick leave
19    available at the beginning of the leave of absence for
20    disability.
21    The benefit shall begin to accrue on the latest of: (i) the
2231st day of absence from work on account of disability
23(including any periods of such absence for which sick pay was
24received); (ii) the day following the day on which the member
25last receives or has a right to receive any compensation as an

 

 

09900SB2362sam002- 42 -LRB099 17070 RPS 45887 a

1employee, including any sick pay; or (iii) if application by
2the member is delayed more than 90 days after the member's name
3is removed from the payroll, the benefit shall be payable
4retroactive to the date that a participant attained the
5eligibility criteria as provided by this Section the date
6application is received by the system. The benefit shall
7continue to accrue until the first of the following to occur:
8        (a) the date on which disability ceases;
9        (b) the end of the month in which the member attains
10    age 65 in the case of benefits commencing prior to
11    attainment of age 60;
12        (c) the end of the month following the fifth
13    anniversary of the effective date of the benefit, or of the
14    temporary disability benefit if one was received, in the
15    case of benefits commencing on or after attainment of age
16    60;
17        (d) the end of the month in which the aggregate period
18    for which non-occupational disability and temporary
19    disability benefit payments have been made becomes equal to
20    1/2 of the member's total period of creditable service, not
21    including the time during which he has received a temporary
22    disability benefit or nonoccupational disability benefit;
23    for purposes of this item (d) only, in the case of a member
24    to whom Section 14-108.2a or 14-108.2b applies and who, at
25    the time disability commences, is performing services for
26    the Illinois Department of Public Health or the Department

 

 

09900SB2362sam002- 43 -LRB099 17070 RPS 45887 a

1    of State Police relating to the transferred functions
2    referred to in that Section and has less than 10 years of
3    creditable service under this Article, the member's "total
4    period of creditable service" shall be augmented by an
5    amount equal to (i) one half of the member's period of
6    creditable service in the Fund established under Article 8
7    (excluding any creditable service over 20 years), minus
8    (ii) the amount of the member's creditable service under
9    this Article;
10        (e) the date on which the member engages in gainful
11    employment;
12        (f) the end of the month in which the death of the
13    member occurs.
14    If disability has ceased and the member again becomes
15disabled within 60 days from date of resumption of State
16employment, and if the disability is due to the same cause for
17which he received nonoccupational disability benefit
18immediately preceding such reentry into service, the 30 days
19waiting period prescribed for the receipt of benefits is waived
20as to such new period of disability.
21    A member shall be considered disabled only when the board
22has received:
23        (a) a written certificate by one or more licensed
24    healthcare practitioners and practicing physicians
25    designated by the board, certifying that the member is
26    disabled and unable properly to perform the duties of his

 

 

09900SB2362sam002- 44 -LRB099 17070 RPS 45887 a

1    position at the time of disability; and
2        (b) the employee certifies that he is not and has not
3    been engaged in gainful employment.
4    The board shall prescribe rules and regulations governing
5the filing of claims for nonoccupational disability benefits,
6and the investigation, control and supervision of such claims.
7    Service credits under the State Universities Retirement
8System and the Teachers' Retirement System of the State of
9Illinois shall be considered for the purposes of
10nonoccupational disability benefit eligibility under this
11Article and for the total period of time for which such
12benefits are payable.
13(Source: P.A. 88-535; 89-246, eff. 8-4-95.)
 
14    (40 ILCS 5/14-125)  (from Ch. 108 1/2, par. 14-125)
15    Sec. 14-125. Nonoccupational disability benefit - Amount
16of. The nonoccupational disability benefit shall be 50% of the
17member's final average compensation at the time disability
18occurred. In the case of a member whose benefit was resumed due
19to the same disability, the amount of the benefit shall be the
20same as that last paid before resumption of State employment.
21In the event that a temporary disability benefit has been
22received, the nonoccupational disability benefit shall be
23subject to adjustment by the Board under Section 14-123.1.
24    If a covered employee is eligible for a disability benefit
25before attaining the Social Security full retirement age 65 or

 

 

09900SB2362sam002- 45 -LRB099 17070 RPS 45887 a

1a retirement benefit on or after attaining the Social Security
2full retirement age 65 under the Federal Social Security Act,
3the amount of the member's nonoccupational disability benefit
4shall be reduced by the amount of primary benefit the member
5would be eligible to receive under such Act, whether or not
6entitlement thereto came about as the result of service as a
7covered employee under this Article. The Board may make such
8reduction if it appears that the employee may be so eligible
9pending determination of eligibility and make an appropriate
10adjustment if necessary after such determination. The amount of
11any nonoccupational disability benefit payable under this
12Article shall not be reduced by reason of any increase under
13the Federal Social Security Act which occurs after the offset
14required by this Section is first applied to that benefit.
15    For purposes of this Section, "Social Security full
16retirement age" is the age at which an individual is eligible
17to receive full Social Security retirement benefits.
18(Source: P.A. 84-1028.)
 
19    (40 ILCS 5/14-127)  (from Ch. 108 1/2, par. 14-127)
20    Sec. 14-127. Credit during disability. During any period of
21disability for which nonoccupational, occupational or
22temporary disability benefits are paid, there shall be credited
23to the account of the disabled member amounts representing the
24contributions the member would have made had he or she remained
25in active employment in the same position and at the rate of

 

 

09900SB2362sam002- 46 -LRB099 17070 RPS 45887 a

1compensation in effect at the time disability occurred. Service
2credit shall also be granted him during any such periods of
3disability for all purposes of this Article except for
4measuring the duration of nonoccupational and temporary
5disability benefits. The resolution of a temporary disability
6benefit into an occupational or nonoccupational disability
7benefit shall not entitle the disabled member to receive
8duplicate contribution and service credit under this Section
9for the period during which the temporary disability benefit
10was paid.
11(Source: P.A. 84-1028.)
 
12    (40 ILCS 5/15-158.2)
13    Sec. 15-158.2. Self-managed plan.
14    (a) Purpose. The General Assembly finds that it is
15important for colleges and universities to be able to attract
16and retain the most qualified employees and that in order to
17attract and retain these employees, colleges and universities
18should have the flexibility to provide a defined contribution
19plan as an alternative for eligible employees who elect not to
20participate in a defined benefit retirement program provided
21under this Article. Accordingly, the State Universities
22Retirement System is hereby authorized to establish and
23administer a self-managed plan, which shall offer
24participating employees the opportunity to accumulate assets
25for retirement through a combination of employee and employer

 

 

09900SB2362sam002- 47 -LRB099 17070 RPS 45887 a

1contributions that may be invested in mutual funds, collective
2investment funds, or other investment products and used to
3purchase annuity contracts, either fixed or variable or a
4combination thereof. The plan must be qualified under the
5Internal Revenue Code of 1986.
6    (b) Adoption by employers. Each employer subject to this
7Article may elect to adopt the self-managed plan established
8under this Section; this election is irrevocable. An employer's
9election to adopt the self-managed plan makes available to the
10eligible employees of that employer the elections described in
11Section 15-134.5.
12    The State Universities Retirement System shall be the plan
13sponsor for the self-managed plan and shall prepare a plan
14document and prescribe such rules and procedures as are
15considered necessary or desirable for the administration of the
16self-managed plan. Consistent with its fiduciary duty to the
17participants and beneficiaries of the self-managed plan, the
18Board of Trustees of the System may delegate aspects of plan
19administration as it sees fit to companies authorized to do
20business in this State, to the employers, or to a combination
21of both.
22    (c) Selection of service providers and funding vehicles.
23The System, in consultation with the employers, shall solicit
24proposals to provide administrative services and funding
25vehicles for the self-managed plan from insurance and annuity
26companies and mutual fund companies, banks, trust companies, or

 

 

09900SB2362sam002- 48 -LRB099 17070 RPS 45887 a

1other financial institutions authorized to do business in this
2State. In reviewing the proposals received and approving and
3contracting with no fewer than 2 and no more than 7 companies,
4the Board of Trustees of the System shall consider, among other
5things, the following criteria:
6        (1) the nature and extent of the benefits that would be
7    provided to the participants;
8        (2) the reasonableness of the benefits in relation to
9    the premium charged;
10        (3) the suitability of the benefits to the needs and
11    interests of the participating employees and the employer;
12        (4) the ability of the company to provide benefits
13    under the contract and the financial stability of the
14    company; and
15        (5) the efficacy of the contract in the recruitment and
16    retention of employees.
17    The System, in consultation with the employers, shall
18periodically review each approved company. A company may
19continue to provide administrative services and funding
20vehicles for the self-managed plan only so long as it continues
21to be an approved company under contract with the Board.
22    (d) Employee Direction. Employees who are participating in
23the program must be allowed to direct the transfer of their
24account balances among the various investment options offered,
25subject to applicable contractual provisions. The participant
26shall not be deemed a fiduciary by reason of providing such

 

 

09900SB2362sam002- 49 -LRB099 17070 RPS 45887 a

1investment direction. A person who is a fiduciary shall not be
2liable for any loss resulting from such investment direction
3and shall not be deemed to have breached any fiduciary duty by
4acting in accordance with that direction. The System shall
5provide advance notice to the participant of the participant's
6obligation to direct the investment of employee and employer
7contributions into one or more investment funds selected by the
8System at the time he or she makes his or her initial
9retirement plan selection. If a participant fails to direct the
10investment of employee and employer contributions into the
11various investment options offered to the participant when
12making his or her initial retirement election choice, that
13failure shall require the System to invest the employee and
14employer contributions in a default investment fund on behalf
15of the participant, and the investment shall be deemed to have
16been made at the participant's investment direction. The
17participant has the right to transfer account balances out of
18the default investment fund during time periods designated by
19the System. Neither the System nor the employer guarantees any
20of the investments in the employee's account balances.
21    (e) Participation. An employee eligible to participate in
22the self-managed plan must make a written election in
23accordance with the provisions of Section 15-134.5 and the
24procedures established by the System. Participation in the
25self-managed plan by an electing employee shall begin on the
26first day of the first pay period following the later of the

 

 

09900SB2362sam002- 50 -LRB099 17070 RPS 45887 a

1date the employee's election is filed with the System or the
2effective date as of which the employee's employer begins to
3offer participation in the self-managed plan. Employers may not
4make the self-managed plan available earlier than January 1,
51998. An employee's participation in any other retirement
6program administered by the System under this Article shall
7terminate on the date that participation in the self-managed
8plan begins.
9    An employee who has elected to participate in the
10self-managed plan under this Section must continue
11participation while employed in an eligible position, and may
12not participate in any other retirement program administered by
13the System under this Article while employed by that employer
14or any other employer that has adopted the self-managed plan,
15unless the self-managed plan is terminated in accordance with
16subsection (i).
17    Notwithstanding any other provision of this Article, a Tier
182 member shall have the option to enroll in the self-managed
19plan.
20    Participation in the self-managed plan under this Section
21shall constitute membership in the State Universities
22Retirement System.
23    A participant under this Section shall be entitled to the
24benefits of Article 20 of this Code.
25    (f) Establishment of Initial Account Balance. If at the
26time an employee elects to participate in the self-managed plan

 

 

09900SB2362sam002- 51 -LRB099 17070 RPS 45887 a

1he or she has rights and credits in the System due to previous
2participation in the traditional benefit package, the System
3shall establish for the employee an opening account balance in
4the self-managed plan, equal to the amount of contribution
5refund that the employee would be eligible to receive under
6Section 15-154 if the employee terminated employment on that
7date and elected a refund of contributions, except that this
8hypothetical refund shall include interest at the effective
9rate for the respective years. The System shall transfer assets
10from the defined benefit retirement program to the self-managed
11plan, as a tax free transfer in accordance with Internal
12Revenue Service guidelines, for purposes of funding the
13employee's opening account balance.
14    (g) No Duplication of Service Credit. Notwithstanding any
15other provision of this Article, an employee may not purchase
16or receive service or service credit applicable to any other
17retirement program administered by the System under this
18Article for any period during which the employee was a
19participant in the self-managed plan established under this
20Section.
21    (h) Contributions. The self-managed plan shall be funded by
22contributions from employees participating in the self-managed
23plan and employer contributions as provided in this Section.
24    The contribution rate for employees participating in the
25self-managed plan under this Section shall be equal to the
26employee contribution rate for other participants in the

 

 

09900SB2362sam002- 52 -LRB099 17070 RPS 45887 a

1System, as provided in Section 15-157. This required
2contribution shall be made as an "employer pick-up" under
3Section 414(h) of the Internal Revenue Code of 1986 or any
4successor Section thereof. Any employee participating in the
5System's traditional benefit package prior to his or her
6election to participate in the self-managed plan shall continue
7to have the employer pick up the contributions required under
8Section 15-157. However, the amounts picked up after the
9election of the self-managed plan shall be remitted to and
10treated as assets of the self-managed plan. In no event shall
11an employee have an option of receiving these amounts in cash.
12Employees may make additional contributions to the
13self-managed plan in accordance with procedures prescribed by
14the System, to the extent permitted under rules prescribed by
15the System.
16    The program shall provide for employer contributions to be
17credited to each self-managed plan participant at a rate of
187.6% of the participating employee's salary, less the amount
19used by the System to provide disability benefits for the
20employee. The amounts so credited shall be paid into the
21participant's self-managed plan accounts in a manner to be
22prescribed by the System.
23    An amount of employer contribution, not exceeding 1% of the
24participating employee's salary, shall be used for the purpose
25of providing the disability benefits of the System to the
26employee. Prior to the beginning of each plan year under the

 

 

09900SB2362sam002- 53 -LRB099 17070 RPS 45887 a

1self-managed plan, the Board of Trustees shall determine, as a
2percentage of salary, the amount of employer contributions to
3be allocated during that plan year for providing disability
4benefits for employees in the self-managed plan.
5    The State of Illinois shall make contributions by
6appropriations to the System of the employer contributions
7required for employees who participate in the self-managed plan
8under this Section. The amount required shall be certified by
9the Board of Trustees of the System and paid by the State in
10accordance with Section 15-165. The System shall not be
11obligated to remit the required employer contributions to any
12of the insurance and annuity companies, mutual fund companies,
13banks, trust companies, financial institutions, or other
14sponsors of any of the funding vehicles offered under the
15self-managed plan until it has received the required employer
16contributions from the State. In the event of a deficiency in
17the amount of State contributions, the System shall implement
18those procedures described in subsection (c) of Section 15-165
19to obtain the required funding from the General Revenue Fund.
20    (i) Termination. The self-managed plan authorized under
21this Section may be terminated by the System, subject to the
22terms of any relevant contracts, and the System shall have no
23obligation to reestablish the self-managed plan under this
24Section. This Section does not create a right to continued
25participation in any self-managed plan set up by the System
26under this Section. If the self-managed plan is terminated, the

 

 

09900SB2362sam002- 54 -LRB099 17070 RPS 45887 a

1participants shall have the right to participate in one of the
2other retirement programs offered by the System and receive
3service credit in such other retirement program for any years
4of employment following the termination.
5    (j) Vesting; Withdrawal; Return to Service. A participant
6in the self-managed plan becomes vested in the employer
7contributions credited to his or her accounts in the
8self-managed plan on the earliest to occur of the following:
9(1) completion of 5 years of service with an employer described
10in Section 15-106; (2) the death of the participating employee
11while employed by an employer described in Section 15-106, if
12the participant has completed at least 1 1/2 years of service;
13or (3) the participant's election to retire and apply the
14reciprocal provisions of Article 20 of this Code.
15    A participant in the self-managed plan who receives a
16distribution of his or her vested amounts from the self-managed
17plan while not yet eligible for retirement under this Article
18(and Article 20, if applicable) shall forfeit all service
19credit and accrued rights in the System; if subsequently
20re-employed, the participant shall be considered a new
21employee. If a former participant again becomes a participating
22employee (or becomes employed by a participating system under
23Article 20 of this Code) and continues as such for at least 2
24years, all such rights, service credits, and previous status as
25a participant shall be restored upon repayment of the amount of
26the distribution, without interest.

 

 

09900SB2362sam002- 55 -LRB099 17070 RPS 45887 a

1    (k) Benefit amounts. If an employee who is vested in
2employer contributions terminates employment, the employee
3shall be entitled to a benefit which is based on the account
4values attributable to both employer and employee
5contributions and any investment return thereon.
6    If an employee who is not vested in employer contributions
7terminates employment, the employee shall be entitled to a
8benefit based solely on the account values attributable to the
9employee's contributions and any investment return thereon,
10and the employer contributions and any investment return
11thereon shall be forfeited. Any employer contributions which
12are forfeited shall be held in escrow by the company investing
13those contributions and shall be used as directed by the System
14for future allocations of employer contributions or for the
15restoration of amounts previously forfeited by former
16participants who again become participating employees.
17(Source: P.A. 98-92, eff. 7-16-13.)
 
18    (40 ILCS 5/18-125)  (from Ch. 108 1/2, par. 18-125)
19    Sec. 18-125. Retirement annuity amount.
20    (a) The annual retirement annuity for a participant who
21terminated service as a judge prior to July 1, 1971 shall be
22based on the law in effect at the time of termination of
23service.
24    (b) Except as provided in subsection (b-5), effective July
251, 1971, the retirement annuity for any participant in service

 

 

09900SB2362sam002- 56 -LRB099 17070 RPS 45887 a

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

 

 

09900SB2362sam002- 57 -LRB099 17070 RPS 45887 a

1    However, in the case of a participant who elects to
2discontinue contributions as provided in subdivision (a)(2) of
3Section 18-133, the time of such election shall be considered
4the last day of employment in the determination of final
5average salary under this subsection.
6    For a participant who first serves as a judge on or after
7August 10, 2009 (the effective date of Public Act 96-207) and
8before January 1, 2011 (the effective date of Public Act
996-889), final average salary shall be the average monthly
10salary obtained by dividing the total salary of the participant
11during the period of: (1) the 48 consecutive months of service
12within the last 120 months of service in which the total
13compensation was the highest, or (2) the total period of
14service, if less than 48 months, by the number of months of
15service in that period.
16    The maximum retirement annuity for any participant shall be
1785% of final average salary.
18    (b-5) Notwithstanding any other provision of this Article,
19for a participant who first serves as a judge on or after
20January 1, 2011 (the effective date of Public Act 96-889), the
21annual retirement annuity is 3% of the participant's final
22average salary for each year of service. The maximum retirement
23annuity payable shall be 60% of the participant's final average
24salary.
25    For a participant who first serves as a judge on or after
26January 1, 2011 (the effective date of Public Act 96-889),

 

 

09900SB2362sam002- 58 -LRB099 17070 RPS 45887 a

1final average salary shall be the average monthly salary
2obtained by dividing the total salary of the judge during the
396 consecutive months of service within the last 120 months of
4service in which the total salary was the highest by the number
5of months of service in that period; however, beginning January
61, 2011, the annual salary for all purposes under this Article
7may not exceed $106,800, except that that amount shall annually
8thereafter be increased by the lesser of (i) 3% of that amount,
9including all previous adjustments, or (ii) the annual
10unadjusted percentage increase (but not less than zero) in the
11consumer price index-u for the 12 months ending with the
12September preceding each November 1. "Consumer price index-u"
13means the index published by the Bureau of Labor Statistics of
14the United States Department of Labor that measures the average
15change in prices of goods and services purchased by all urban
16consumers, United States city average, all items, 1982-84 =
17100. The new amount resulting from each annual adjustment shall
18be determined by the Public Pension Division of the Department
19of Insurance and made available to the Board by November 1st of
20each year.
21    (c) The retirement annuity for a participant who retires
22prior to age 60 with less than 28 years of service in the
23System shall be reduced 1/2 of 1% for each month that the
24participant's age is under 60 years at the time the annuity
25commences. However, for a participant who retires on or after
26the effective date of this amendatory Act of the 91st General

 

 

09900SB2362sam002- 59 -LRB099 17070 RPS 45887 a

1Assembly, the percentage reduction in retirement annuity
2imposed under this subsection shall be reduced by 5/12 of 1%
3for every month of service in this System in excess of 20
4years, and therefore a participant with at least 26 years of
5service in this System may retire at age 55 without any
6reduction in annuity.
7    The reduction in retirement annuity imposed by this
8subsection shall not apply in the case of retirement on account
9of disability.
10    (d) Notwithstanding any other provision of this Article,
11for a participant who first serves as a judge on or after
12January 1, 2011 (the effective date of Public Act 96-889) and
13who is retiring after attaining age 62, the retirement annuity
14shall be reduced by 1/2 of 1% for each month that the
15participant's age is under age 67 at the time the annuity
16commences.
17(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
1896-1000, eff. 7-2-10; 96-1490, eff. 1-1-11.)
 
19    (40 ILCS 5/18-126.1)  (from Ch. 108 1/2, par. 18-126.1)
20    Sec. 18-126.1. Temporary total disability. A participant
21who has served for at least 2 years as a judge and has at least
222 years of service credit shall be entitled to a temporary
23total disability benefit provided:
24    (1) While in employment as a judge, the participant is
25found by medical examination to be mentally or physically

 

 

09900SB2362sam002- 60 -LRB099 17070 RPS 45887 a

1incompetent to perform his or her duties;
2    (2) The participant does not receive or have a right to
3receive any salary as a judge;
4    (3) The board has received written certifications by at
5least 2 licensed and practicing physicians designated by it
6certifying that the participant is totally disabled and unable
7to perform the duties of his or her office as a consequence
8thereof; and
9    (4) The participant is not engaged in any form of gainful
10occupation during his or her disability.
11     The benefit shall begin as of the day following the
12removal of the judge from the payroll on account of the
13disability and be payable during the period of disability but
14not beyond the term of office for which the participant was
15last elected or appointed.
16    The benefit shall be 50% of the participant's rate of
17salary in effect at the date of removal from the payroll and
18shall be payable monthly. The rate of salary to determine the
19benefit under this Section payable to a participant who first
20serves as a judge on or after January 1, 201l shall be subject
21to the annual salary limitation prescribed by subsection (b-5)
22of Section 18-125.
23    A participant shall receive service credit for retirement
24and survivor's annuity purposes for the period that temporary
25disability benefits are paid.
26    The board shall prescribe rules and regulations necessary

 

 

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1for the administration of this benefit.
2(Source: P.A. 83-1440.)
 
3    (40 ILCS 5/18-128.01)  (from Ch. 108 1/2, par. 18-128.01)
4    Sec. 18-128.01. Amount of survivor's annuity.
5    (a) Upon the death of an annuitant, his or her surviving
6spouse shall be entitled to a survivor's annuity of 66 2/3% of
7the annuity the annuitant was receiving immediately prior to
8his or her death, inclusive of annual increases in the
9retirement annuity to the date of death.
10    (b) Upon the death of an active participant, his or her
11surviving spouse shall receive a survivor's annuity of 66 2/3%
12of the annuity earned by the participant as of the date of his
13or her death, determined without regard to whether the
14participant had attained age 60 as of that time, or 7 1/2% of
15the last salary of the decedent, whichever is greater.
16    (c) Upon the death of a participant who had terminated
17service with at least 10 years of service, his or her surviving
18spouse shall be entitled to a survivor's annuity of 66 2/3% of
19the annuity earned by the deceased participant at the date of
20death.
21    (d) Upon the death of an annuitant, active participant, or
22participant who had terminated service with at least 10 years
23of service, each surviving child under the age of 18 or
24disabled as defined in Section 18-128 shall be entitled to a
25child's annuity in an amount equal to 5% of the decedent's

 

 

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1final salary, not to exceed in total for all such children the
2greater of 20% of the decedent's last salary or 66 2/3% of the
3annuity received or earned by the decedent as provided under
4subsections (a) and (b) of this Section. This child's annuity
5shall be paid whether or not a survivor's annuity was elected
6under Section 18-123.
7    (e) The changes made in the survivor's annuity provisions
8by Public Act 82-306 shall apply to the survivors of a deceased
9participant or annuitant whose death occurs on or after August
1021, 1981.
11    (f) Beginning January 1, 1990, every survivor's annuity
12shall be increased (1) on each January 1 occurring on or after
13the commencement of the annuity if the deceased member died
14while receiving a retirement annuity, or (2) in other cases, on
15each January 1 occurring on or after the first anniversary of
16the commencement of the annuity, by an amount equal to 3% of
17the current amount of the annuity, including any previous
18increases under this Article. Such increases shall apply
19without regard to whether the deceased member was in service on
20or after the effective date of this amendatory Act of 1991, but
21shall not accrue for any period prior to January 1, 1990.
22    (g) Notwithstanding any other provision of this Article,
23the initial survivor's annuity for a survivor of a participant
24who first serves as a judge after January 1, 2011 (the
25effective date of Public Act 96-889) shall be in the amount of
2666 2/3% of the annuity received or earned by the decedent, and

 

 

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1shall be increased (1) on each January 1 occurring on or after
2the commencement of the annuity if the deceased participant
3died while receiving a retirement annuity, or (2) in other
4cases, on each January 1 occurring on or after the first
5anniversary of the commencement of the annuity, but in no event
6prior to age 67, by an amount equal to 3% or the annual
7unadjusted percentage increase in the consumer price index-u as
8determined by the Public Pension Division of the Department of
9Insurance under subsection (b-5) of Section 18-125, whichever
10is less, of the survivor's annuity then being paid. If 2 or
11more persons are eligible to receive survivor's annuities as
12provided under this Section based on the same deceased
13participant that first serves as a judge after January 1, 2011,
14the calculation of the survivor's annuities shall be based on
15the total calculation of the survivor's annuity and divided pro
16rata.
17(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
18    (40 ILCS 5/18-133)  (from Ch. 108 1/2, par. 18-133)
19    Sec. 18-133. Financing; employee contributions.
20    (a) Effective July 1, 1967, each participant is required to
21contribute 7 1/2% of each payment of salary toward the
22retirement annuity. Such contributions shall continue during
23the entire time the participant is in service, with the
24following exceptions:
25        (1) Contributions for the retirement annuity are not

 

 

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1    required on salary received after 18 years of service by
2    persons who were participants before January 2, 1954.
3        (2) A participant who continues to serve as a judge
4    after becoming eligible to receive the maximum rate of
5    annuity may elect, through a written direction filed with
6    the Board, to discontinue contributing to the System. Any
7    such option elected by a judge shall be irrevocable unless
8    prior to January 1, 2000, and while continuing to serve as
9    judge, the judge (A) files with the Board a letter
10    cancelling the direction to discontinue contributing to
11    the System and requesting that such contributing resume,
12    and (B) pays into the System an amount equal to the total
13    of the discontinued contributions plus interest thereon at
14    5% per annum. Service credits earned in any other
15    "participating system" as defined in Article 20 of this
16    Code shall be considered for purposes of determining a
17    judge's eligibility to discontinue contributions under
18    this subdivision (a)(2).
19        (3) A participant who (i) first serves as a judge
20    before January 1, 2011 and has attained age 60, or first
21    serves as a judge on or after January 1, 2011 and has
22    attained age 67, (ii) continues to serve as a judge after
23    becoming eligible to receive the maximum rate of annuity,
24    and (iii) has not elected to discontinue contributing to
25    the System under subdivision (a)(2) of this Section (or has
26    revoked any such election) may elect, through a written

 

 

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1    direction filed with the Board, to make contributions to
2    the System based only on the amount of the increases in
3    salary received by the judge on or after the date of the
4    election, rather than the total salary received. If a judge
5    who is making contributions to the System on the effective
6    date of this amendatory Act of the 91st General Assembly
7    makes an election to limit contributions under this
8    subdivision (a)(3) within 90 days after that effective
9    date, the election shall be deemed to become effective on
10    that effective date and the judge shall be entitled to
11    receive a refund of any excess contributions paid to the
12    System during that 90-day period; any other election under
13    this subdivision (a)(3) becomes effective on the first of
14    the month following the date of the election. An election
15    to limit contributions under this subdivision (a)(3) is
16    irrevocable. Service credits earned in any other
17    participating system as defined in Article 20 of this Code
18    shall be considered for purposes of determining a judge's
19    eligibility to make an election under this subdivision
20    (a)(3).
21    (b) Beginning July 1, 1969, each participant is required to
22contribute 1% of each payment of salary towards the automatic
23increase in annuity provided in Section 18-125.1. However, such
24contributions need not be made by any participant who has
25elected prior to September 15, 1969, not to be subject to the
26automatic increase in annuity provisions.

 

 

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1    (c) Effective July 13, 1953, each married participant
2subject to the survivor's annuity provisions is required to
3contribute 2 1/2% of each payment of salary, whether or not he
4or she is required to make any other contributions under this
5Section. Such contributions shall be made concurrently with the
6contributions made for annuity purposes.
7    (d) Notwithstanding any other provision of this Article,
8the required contributions for a participant who first becomes
9a participant on or after January 1, 2011 shall not exceed the
10contributions that would be due under this Article if that
11participant's highest salary for annuity purposes were
12$106,800, plus any increase in that amount under Section
1318-125.
14(Source: P.A. 96-1490, eff. 1-1-11.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.".