Full Text of HB1697 95th General Assembly
HB1697ham003 95TH GENERAL ASSEMBLY
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Rep. Robert S. Molaro
Filed: 5/23/2007
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09500HB1697ham003 |
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LRB095 07041 AMC 36744 a |
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| AMENDMENT TO HOUSE BILL 1697
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| AMENDMENT NO. ______. Amend House Bill 1697 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The Illinois Pension Code is amended by | 5 |
| changing Sections 14-119, 14-121, 14-130, 14-131, and 14-133 | 6 |
| and by adding Section 14-152.2 as follows:
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| (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
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| Sec. 14-119. Amount of widow's annuity.
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| (a) The widow's annuity shall be 50% of the amount of | 10 |
| retirement annuity
payable to the member on the date of death | 11 |
| while on retirement if an
annuitant, or on the date of his | 12 |
| death while in service if an employee,
regardless of his age on | 13 |
| such date, or on the date of withdrawal if death
occurred after | 14 |
| termination of service under the conditions prescribed in
the | 15 |
| preceding Section.
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| (b) If an eligible widow, regardless of age, has in her |
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| care any
unmarried child or children of the member under age 18 | 2 |
| (under age 22 if a
full-time student), the widow's
annuity | 3 |
| shall be increased in the amount of 5% of the retirement | 4 |
| annuity
for each such child, but the combined payments for a | 5 |
| widow and
children shall not exceed 66 2/3% of the member's | 6 |
| earned
retirement annuity.
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| The amount of retirement annuity from which the widow's
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| annuity is derived shall be that earned by the member without | 9 |
| regard to
whether he attained age 60 prior to his withdrawal | 10 |
| under the conditions
stated or prior to his death.
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| (c) Adopted children shall be considered as children of the | 12 |
| member
only if the proceedings for adoption were commenced at | 13 |
| least 1 year
prior to the member's death.
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| Marriage of a child shall render the child ineligible for | 15 |
| further
consideration in the increase in the amount of the | 16 |
| widow's annuity.
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| Attainment of age 18 (age 22 if a full-time student)
shall | 18 |
| render a child ineligible for
further consideration in the | 19 |
| increase of the widow's annuity, but the
annuity to the widow | 20 |
| shall be continued thereafter, without regard to
her age at | 21 |
| that time.
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| (d) Except as otherwise provided in this subsection (d) and | 23 |
| Section 14-152.2, a widow's annuity payable on
account of any | 24 |
| covered employee who has
shall have
been a covered employee for | 25 |
| at least 18 months shall be reduced
by 1/2 of the amount of | 26 |
| survivors benefits to which his beneficiaries are
eligible |
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| under the provisions of the Federal Social Security Act, except
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| that (1) the amount of any widow's annuity payable under this | 3 |
| Article shall
not be reduced by reason of any increase under | 4 |
| that Act which occurs after
the offset required by this | 5 |
| subsection is first applied to that annuity,
and (2) for | 6 |
| benefits granted on or after January 1, 1992, the offset under
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| this subsection (d) shall not exceed 50% of the amount of | 8 |
| widow's annuity
otherwise payable.
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| Beginning on July 1, 2008 (and except as otherwise provided | 10 |
| in Section 14-152.2), the offset under this subsection (d) | 11 |
| shall no
longer be applied to a widow's annuity of any person | 12 |
| receiving retirement benefits or a widow's annuity on the | 13 |
| effective date of this amendatory Act of the 95th General | 14 |
| Assembly.
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| Except as otherwise provided in Section 14-152.2, an active | 16 |
| member of the System first employed before January 1, 2008 must | 17 |
| file an election to have the offset under this subsection (d) | 18 |
| applied to his or her widow's annuity with the System before | 19 |
| March 1, 2008. If no election is made by the employee, then the | 20 |
| employee must begin making the additional 0.6% contribution | 21 |
| required under Section 14-133, and he or she may apply before | 22 |
| September 1, 2008 to make the contributions for any prior | 23 |
| service. Once the member has made an election or failed to make | 24 |
| the election to have the offset applied to his or her widow's | 25 |
| annuity within the specified period, the member must maintain | 26 |
| that status until a qualifying event occurs. Upon the |
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| occurrence of a qualifying event, (i) if the member's widow's | 2 |
| annuity is subject to the offset, the member may elect to | 3 |
| remove the offset and begin to make contributions for any | 4 |
| service after that date and, within 60 days after that date, | 5 |
| make contributions for any prior service without interest or | 6 |
| (ii) if the member's widow's annuity is not subject to the | 7 |
| offset, the member may elect to have the offset applied to his | 8 |
| or her widow's annuity and cease making the contributions, but | 9 |
| shall receive no refund for the contributions.
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| Except as otherwise provided in Section 14-152.2, unless an | 11 |
| active member of the System first employed on or after January | 12 |
| 1, 2008 files an election to have the offset under this | 13 |
| subsection (d) applied to his or her widow's annuity with the | 14 |
| System during his or her qualifying period, he or she shall | 15 |
| begin making the 1.1% contribution required under Section | 16 |
| 14-133. After the qualifying period, the member must maintain | 17 |
| his or her offset status until a qualifying event occurs. Upon | 18 |
| the occurrence of a qualifying event, (i) if the member's | 19 |
| widow's annuity is subject to the offset, the member may elect | 20 |
| to remove the offset and begin to make contributions for any | 21 |
| service after that date and, within 60 days after that date, | 22 |
| make contributions for any prior service without interest or | 23 |
| (ii) if the member's widow's annuity is not subject to the | 24 |
| offset, the member may elect to have the offset applied to his | 25 |
| or her widow's annuity and cease making the contributions, but | 26 |
| shall receive no refund for the contributions.
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| If a member has a qualifying spouse at the time of | 2 |
| retirement and has made the additional contributions pursuant | 3 |
| to Section 14-133 to remove the offset under this subsection | 4 |
| (d) for all of his or her creditable service, then the offset | 5 |
| under this subsection (d) does not apply to the member's | 6 |
| widow's benefit. If a member has a qualifying spouse at the | 7 |
| time of retirement and has made the additional contributions | 8 |
| pursuant to Section 14-133 to remove the offset under this | 9 |
| subsection (d) for a portion of his or her creditable service, | 10 |
| then the member may either (A) receive a refund of the | 11 |
| additional contributions made and have the offset under this | 12 |
| subsection (d) apply to the member's widow's annuity or (B) | 13 |
| make the required contributions for any period for which he or | 14 |
| she has not contributed, plus interest. If a member does not | 15 |
| have a qualifying spouse at the time of retirement, then the | 16 |
| member may receive a refund of the additional contributions | 17 |
| made pursuant to Section 14-133 to remove the offset under this | 18 |
| subsection (d).
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| For the purposes of this subsection (d), "qualifying event" | 20 |
| includes a change in marital status (including the death of a | 21 |
| spouse) or the adoption or birth of a child.
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| (e) Upon the death of a recipient of a widow's annuity the | 23 |
| excess, if
any, of the member's accumulated contributions plus | 24 |
| credited interest over
all annuity payments to the member and | 25 |
| widow, exclusive of the $500 lump
sum payment, shall be paid to | 26 |
| the named beneficiary of the widow, or if
none has been named, |
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| to the estate of the widow, provided no reversionary
annuity is | 2 |
| payable.
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| (f) On January 1, 1981, any recipient of a widow's annuity | 4 |
| who was receiving
a widow's annuity on or before January 1, | 5 |
| 1971, shall have her widow's annuity
then being paid increased | 6 |
| by 1% for each full year which has elapsed from
the date the | 7 |
| widow's annuity began. On January 1, 1982, any recipient
of a | 8 |
| widow's annuity who began receiving a widow's annuity after | 9 |
| January
1, 1971, but before January 1, 1981, shall have her | 10 |
| widow's annuity then
being paid increased by 1% for each full | 11 |
| year which has elapsed from the
date the widow's annuity began. | 12 |
| On January 1, 1987, any recipient of a
widow's annuity who | 13 |
| began receiving the widow's annuity on or before January
1, | 14 |
| 1977, shall have the monthly widow's annuity increased by $1
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| for each full year which has elapsed since the date the
annuity | 16 |
| began.
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| (g) Beginning January 1, 1990, every widow's annuity shall | 18 |
| be
increased (1) on each January 1 occurring on or after the | 19 |
| commencement
of the annuity if the deceased member died while | 20 |
| receiving a retirement
annuity, or (2) in other cases, on each | 21 |
| January 1 occurring on or after
the first anniversary of the | 22 |
| commencement of the annuity, by an amount
equal to 3% of the | 23 |
| current amount of the annuity, including any previous
increases | 24 |
| under this Article. Such increases shall apply without regard | 25 |
| to
whether the deceased member was in service on or after the | 26 |
| effective date
of Public Act 86-1488, but shall not accrue for |
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| any period prior to January
1, 1990.
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| (Source: P.A. 90-448, eff. 8-16-97.)
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| (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
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| Sec. 14-121. Amount of survivors annuity. A survivors | 5 |
| annuity
beneficiary shall be entitled upon death of the member | 6 |
| to a single sum
payment of $1,000, payable pro rata among all | 7 |
| persons entitled thereto,
together with a survivors annuity | 8 |
| payable at the rates and under the
conditions specified in this | 9 |
| Article.
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| (a) If the survivors annuity beneficiary is a spouse, the | 11 |
| survivors
annuity shall be 30% of final average compensation | 12 |
| subject to a maximum
payment of $400 per month.
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| (b) If an eligible child or children under the care of a | 14 |
| spouse also
survives the member, such spouse as natural | 15 |
| guardian of the child or
children shall receive, in addition to | 16 |
| the foregoing annuity, 20% of final
average compensation on | 17 |
| account of each such child and 10% of final average
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| compensation divided pro rata among such children, subject to a | 19 |
| maximum
payment on account of all survivor annuity | 20 |
| beneficiaries of $600 per month,
or 80% of the member's final | 21 |
| average compensation, whichever is the lesser.
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| (c) If the survivors annuity beneficiary or beneficiaries | 23 |
| consists of
an unmarried child or children, the amount of | 24 |
| survivors annuity shall be
20% of final average compensation to | 25 |
| each child, and 10% of final average
compensation divided pro |
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| rata among all such children entitled to such annuity,
subject | 2 |
| to a maximum payment to all children combined of $600 per month
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| or 80% of the member's final average compensation, whichever is | 4 |
| the lesser.
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| (d) If the survivors annuity beneficiary is one or more | 6 |
| dependent parents,
the annuity shall be 20% of final average | 7 |
| compensation to each parent and
10% of final average | 8 |
| compensation divided pro rata among the parents who
qualify for | 9 |
| this annuity, subject to a maximum payment to both dependent
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| parents of $400 per month.
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| (e) The survivors annuity to the spouse, children or | 12 |
| dependent parents of
a member whose death occurs after the date | 13 |
| of last withdrawal, or after
retirement, or while in service | 14 |
| following reentry into service after
retirement but before | 15 |
| completing 1 1/2 years of additional creditable
service, shall | 16 |
| not exceed the lesser of 80% of the member's earned
retirement | 17 |
| annuity at the date of death or the maximum previously
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| established in this Section.
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| (f) In applying the limitation prescribed on the combined | 20 |
| payments to
2 or more survivors annuity beneficiaries, the | 21 |
| annuity on account of each
beneficiary shall be reduced pro | 22 |
| rata until such time as the number of
beneficiaries makes the | 23 |
| reduction no longer applicable.
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| (g) Except as otherwise provided in this subsection (g) and | 25 |
| Section 14-152.2, a survivors annuity payable on account of
any | 26 |
| covered employee who has
shall have been a covered employee for |
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| at
least 18 months at date of death or last withdrawal, | 2 |
| whichever is the later,
shall be reduced by 1/2 of the | 3 |
| survivors benefits to which his beneficiaries
are eligible | 4 |
| under the federal Social Security Act, except that (1) the
| 5 |
| survivors annuity payable under this Article shall not be | 6 |
| reduced by any
increase under that Act which occurs after the | 7 |
| offset required by this
subsection is first applied to that | 8 |
| annuity, (2) for benefits granted on or
after January 1, 1992, | 9 |
| the offset under this subsection (g) shall not exceed
50% of | 10 |
| the amount of survivors annuity otherwise payable.
| 11 |
| Beginning on July 1, 2008 (and except as otherwise provided | 12 |
| in Section 14-152.2), the offset under this subsection (g) | 13 |
| shall no
longer be applied to a survivors annuity of any person | 14 |
| receiving retirement benefits or a survivors annuity on the | 15 |
| effective date of this amendatory Act of the 95th General | 16 |
| Assembly.
| 17 |
| Except as otherwise provided in Section 14-152.2, an active | 18 |
| member of the System first employed before January 1, 2008 must | 19 |
| file an election to have the offset under this subsection (g) | 20 |
| applied to his or her survivors annuity with the System before | 21 |
| March 1, 2008. If no election is made by the employee, then the | 22 |
| employee must begin making the additional 0.6% contribution | 23 |
| required pursuant to Section 14-133, and he or she may apply | 24 |
| before September 1, 2008 to make the contributions for any | 25 |
| prior service. Once the member has made an election or failed | 26 |
| to make the election to have the offset applied to his or her |
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| survivors annuity within the specified period, the member must | 2 |
| maintain that status until a qualifying event occurs. Upon the | 3 |
| occurrence of a qualifying event, (i) if the member's survivors | 4 |
| annuity is subject to the offset, the member may elect to | 5 |
| remove the offset and begin to make contributions for any | 6 |
| service after that date and, within 60 days after that date, | 7 |
| make contributions for any prior service without interest or | 8 |
| (ii) if the member's survivors annuity is not subject to the | 9 |
| offset, the member may elect to have the offset applied to his | 10 |
| or her survivors annuity and cease making the contributions, | 11 |
| but shall receive no refund for the contributions.
| 12 |
| Except as otherwise provided in Section 14-152.2, unless an | 13 |
| active member of the System first employed on or after January | 14 |
| 1, 2008 files an election to have the offset under this | 15 |
| subsection (g) applied to his or her survivors annuity with the | 16 |
| System during his or her qualifying period, he or she shall | 17 |
| begin making the 1.1% contribution required under Section | 18 |
| 14-133. After the qualifying period, the member must maintain | 19 |
| his or her offset status until a qualifying event occurs. Upon | 20 |
| the occurrence of a qualifying event, (i) if the member's | 21 |
| survivors annuity is subject to the offset, the member may | 22 |
| elect to remove the offset and begin to make contributions for | 23 |
| any service after that date and, within 60 days after that | 24 |
| date, make contributions for any prior service without interest | 25 |
| or (ii) if the member's survivors annuity is not subject to the | 26 |
| offset, the member may elect to have the offset applied to his |
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| or her survivors annuity and cease making the contributions, | 2 |
| but shall receive no refund for the contributions.
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| If a member has a qualifying survivor at the time of | 4 |
| retirement and has made the additional contributions pursuant | 5 |
| to Section 14-133 to remove the offset under this subsection | 6 |
| (g) for all of his or her creditable service, then the offset | 7 |
| under this subsection (d) does not apply to the member's | 8 |
| survivors benefit. If a member has a qualifying survivor at the | 9 |
| time of retirement and has made the additional contributions | 10 |
| under Section 14-133 to remove the offset under this subsection | 11 |
| (g) for a portion of his or her creditable service, then the | 12 |
| member may either (A) receive a refund of the additional | 13 |
| contributions made and have the offset under this subsection | 14 |
| (g) apply to the member's survivors annuity or (B) make the | 15 |
| required contributions for any period for which he or she has | 16 |
| not contributed, plus interest. If a member does not have a | 17 |
| qualifying survivor at the time of retirement, then the member | 18 |
| may receive a refund of the additional contributions made | 19 |
| pursuant to Section 14-133 to remove the offset under this | 20 |
| subsection (g).
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| For the purposes of this subsection (g), "qualifying event" | 22 |
| includes a change in marital status (including the death of a | 23 |
| spouse) or the adoption or birth of a child.
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| (h) The minimum payment to a beneficiary hereunder shall be | 25 |
| $60 per month,
which shall be reduced in accordance with the | 26 |
| limitation prescribed on the
combined payments to all |
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| beneficiaries of a member.
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| (i) Subject to the conditions set forth in Section 14-120, | 3 |
| the minimum
total survivors annuity benefit payable to the | 4 |
| survivors annuity beneficiaries
of a deceased member or | 5 |
| annuitant whose death occurs on or after January
1, 1984, shall | 6 |
| be 50% of the amount of retirement annuity that was or would
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| have been payable to the deceased on the date of death, | 8 |
| regardless of the
age of the deceased on such date. If the | 9 |
| minimum total benefit provided
by this subsection exceeds the | 10 |
| maximum otherwise imposed by this Section,
the minimum total | 11 |
| benefit shall nevertheless be payable. Any increase in
the | 12 |
| total survivors annuity benefit resulting from the operation of | 13 |
| this
subsection shall be divided among the survivors annuity | 14 |
| beneficiaries of
the deceased in proportion to their shares of | 15 |
| the total survivors annuity
benefit otherwise payable under | 16 |
| this Section.
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| (j) Any survivors annuity beneficiary whose annuity | 18 |
| terminates due to any
condition specified in this Article other | 19 |
| than death shall be entitled to
a refund of the excess, if any, | 20 |
| of the accumulated contributions of the
member plus credited | 21 |
| interest over all payments to the member and beneficiary
or | 22 |
| beneficiaries, exclusive of the single sum payment of $1,000, | 23 |
| provided
no future survivors or reversionary annuity benefits | 24 |
| are payable.
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| (k) Upon the death of the last eligible recipient of a | 26 |
| survivors
annuity the excess, if any, of the member's |
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| accumulated contributions plus
credited interest over all | 2 |
| annuity payments to the member and survivors
exclusive of the | 3 |
| single sum payment of $1000, shall be paid to the named
| 4 |
| beneficiary of the last eligible survivor, or if none has been | 5 |
| named, to
the estate of the last eligible survivor, provided no | 6 |
| reversionary annuity
is payable.
| 7 |
| (l) On January 1, 1981, any survivor who was receiving a | 8 |
| survivors
annuity on or before January 1, 1971, shall have his | 9 |
| survivors annuity then
being paid increased by 1% for each full | 10 |
| year which has elapsed from the
date the annuity began. On | 11 |
| January 1, 1982, any survivor who began receiving
a survivor's | 12 |
| annuity after January 1, 1971, but before January 1, 1981,
| 13 |
| shall have his survivor's annuity then being paid increased by | 14 |
| 1% for each
full year that has elapsed from the date the | 15 |
| annuity began.
On January 1, 1987, any survivor who began | 16 |
| receiving a survivor's annuity
on or before January 1, 1977, | 17 |
| shall have the monthly survivor's annuity
increased by $1 for | 18 |
| each full year which has elapsed since the date the
survivor's | 19 |
| annuity began.
| 20 |
| (m) Beginning January 1, 1990, every survivor's annuity | 21 |
| shall be increased
(1) on each January 1 occurring on or after | 22 |
| the commencement of the annuity if
the deceased member died | 23 |
| while receiving a retirement annuity, or (2) in
other cases, on | 24 |
| each January 1 occurring on or after the first anniversary
of | 25 |
| the commencement of the annuity, by an amount equal to 3% of | 26 |
| the current
amount of the annuity, including any previous |
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| increases under this Article.
Such increases shall apply | 2 |
| without regard to whether the deceased member
was in service on | 3 |
| or after the effective date of Public Act 86-1488,
but shall | 4 |
| not accrue for any period prior to January 1, 1990.
| 5 |
| (Source: P.A. 86-273; 86-1488; 87-794.)
| 6 |
| (40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
| 7 |
| Sec. 14-130. Refunds; rules.
| 8 |
| (a) Upon withdrawal a member is entitled to receive, upon | 9 |
| written
request, a refund of the member's contributions, | 10 |
| including credits granted
while in receipt of disability | 11 |
| benefits, without credited interest. The
board, in its | 12 |
| discretion may withhold payment of the refund of a member's
| 13 |
| contributions for a period not to exceed 1 year after the | 14 |
| member has ceased
to be an employee.
| 15 |
| For purposes of this Section, a member will be considered | 16 |
| to have
withdrawn from service if a change in, or transfer of, | 17 |
| his position
results in his becoming ineligible for continued | 18 |
| membership in this
System and eligible for membership in | 19 |
| another public retirement system
under this Act.
| 20 |
| (b) A member receiving a refund forfeits and relinquishes | 21 |
| all
accrued rights in the System, including all accumulated | 22 |
| creditable
service. If the person again becomes a member of the | 23 |
| System and
establishes at least 2 years of creditable service, | 24 |
| the member may repay
all the moneys previously refunded or a | 25 |
| portion of the moneys previously refunded representing |
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| contributions for one or more whole months of creditable | 2 |
| service. If a member repays a portion of moneys previously | 3 |
| refunded, he or she may later repay some or all of the | 4 |
| remaining portion of those previously refunded moneys. | 5 |
| However, a former member may restore
credits previously | 6 |
| forfeited by acceptance of a refund without returning to
| 7 |
| service by applying in writing and repaying to the System, by | 8 |
| April 1,
1993, the amount of the refund plus regular interest | 9 |
| calculated from the
date of refund to the date of repayment.
| 10 |
| The repayment of refunds issued prior to January 1, 1984 | 11 |
| shall consist
of the amount refunded plus 5% interest per annum | 12 |
| compounded annually for
the period from the date of the refund | 13 |
| to the end of the month in which
repayment is made. The | 14 |
| repayment of refunds issued after January 1, 1984
shall consist | 15 |
| of the amount refunded plus regular interest for the period
| 16 |
| from the date of refund to the end of the month in which | 17 |
| repayment is made.
The repayment of the refund of a person who | 18 |
| accepts an alternative retirement cancellation payment under | 19 |
| Section 14-108.5 shall consist of the entire amount paid to the | 20 |
| person under subsection (c) of Section 14-108.5 plus regular | 21 |
| interest for the period from the date of the refund to the end | 22 |
| of the month in which repayment is made. However, in the case | 23 |
| of a refund that is repaid in a lump sum between
January 1, | 24 |
| 1991 and July 1, 1991, repayment shall consist of the amount
| 25 |
| refunded plus interest at the rate of 2.5% per annum compounded | 26 |
| annually
from the date of the refund to the end of the month in |
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| which repayment is made.
| 2 |
| Upon repayment, the member shall receive credit for the
| 3 |
| service for which the refund has been repaid, and the | 4 |
| corresponding member contributions and regular interest that | 5 |
| was forfeited by
acceptance of the refund, as well as regular | 6 |
| interest for the period of
non-membership. Such repayment shall | 7 |
| be made in full before retirement
either in a lump sum or in | 8 |
| installment payments in accordance with such
rules as may be | 9 |
| adopted by the board.
| 10 |
| (b-5) The Board may adopt rules governing the repayment of | 11 |
| refunds
and establishment of credits in cases involving awards | 12 |
| of back pay or
reinstatement. The rules may authorize repayment | 13 |
| of a refund in installment
payments and may waive the payment | 14 |
| of interest on refund amounts repaid in
full within a specified | 15 |
| period.
| 16 |
| (c) A member no longer in service who is unmarried and does | 17 |
| not have an eligible survivors annuity
beneficiary on the date | 18 |
| of application therefor is
entitled to a refund of | 19 |
| contributions for widow's annuity or survivors
annuity | 20 |
| purposes, or both, as the case may be, including the increased | 21 |
| amounts paid pursuant to the increase in contribution rates for | 22 |
| widow or survivors annuity purposes under Section 14-133 by | 23 |
| this amendatory Act of the 95th General Assembly, without | 24 |
| interest. A widow's
annuity or survivors annuity shall not be | 25 |
| payable upon the death of a person
who has received this | 26 |
| refund, unless prior to that death the amount of the
refund has |
|
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| been repaid to the System, together with regular interest from | 2 |
| the
date of the refund to the date of repayment.
| 3 |
| (d) Any member who has service credit in any position for | 4 |
| which an
alternative retirement annuity is provided and in | 5 |
| relation to which an
increase in the rate of employee | 6 |
| contribution is required, shall be
entitled to a refund, | 7 |
| without interest, of that part of the member's
employee | 8 |
| contribution which results from that increase in the employee
| 9 |
| rate if the member does not qualify for that alternative | 10 |
| retirement
annuity at the time of retirement.
| 11 |
| (Source: P.A. 93-839, eff. 7-30-04; 94-455, eff. 8-4-05.)
| 12 |
| (40 ILCS 5/14-131)
(from Ch. 108 1/2, par. 14-131)
| 13 |
| Sec. 14-131. Contributions by State.
| 14 |
| (a) The State shall make contributions to the System by | 15 |
| appropriations of
amounts which, together with other employer | 16 |
| contributions from trust, federal,
and other funds, employee | 17 |
| contributions, investment income, and other income,
will be | 18 |
| sufficient to meet the cost of maintaining and administering | 19 |
| the System
on a 90% funded basis in accordance with actuarial | 20 |
| recommendations.
| 21 |
| For the purposes of this Section and Section 14-135.08, | 22 |
| references to State
contributions refer only to employer | 23 |
| contributions and do not include employee
contributions that | 24 |
| are picked up or otherwise paid by the State or a
department on | 25 |
| behalf of the employee.
|
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| (b) The Board shall determine the total amount of State | 2 |
| contributions
required for each fiscal year on the basis of the | 3 |
| actuarial tables and other
assumptions adopted by the Board, | 4 |
| using the formula in subsection (e).
| 5 |
| The Board shall also determine a State contribution rate | 6 |
| for each fiscal
year, expressed as a percentage of payroll, | 7 |
| based on the total required State
contribution for that fiscal | 8 |
| year (less the amount received by the System from
| 9 |
| appropriations under Section 8.12 of the State Finance Act and | 10 |
| Section 1 of the
State Pension Funds Continuing Appropriation | 11 |
| Act, if any, for the fiscal year
ending on the June 30 | 12 |
| immediately preceding the applicable November 15
certification | 13 |
| deadline), the estimated payroll (including all forms of
| 14 |
| compensation) for personal services rendered by eligible | 15 |
| employees, and the
recommendations of the actuary.
| 16 |
| For the purposes of this Section and Section 14.1 of the | 17 |
| State Finance Act,
the term "eligible employees" includes | 18 |
| employees who participate in the System,
persons who may elect | 19 |
| to participate in the System but have not so elected,
persons | 20 |
| who are serving a qualifying period that is required for | 21 |
| participation,
and annuitants employed by a department as | 22 |
| described in subdivision (a)(1) or
(a)(2) of Section 14-111.
| 23 |
| (c) Contributions shall be made by the several departments | 24 |
| for each pay
period by warrants drawn by the State Comptroller | 25 |
| against their respective
funds or appropriations based upon | 26 |
| vouchers stating the amount to be so
contributed. These amounts |
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| shall be based on the full rate certified by the
Board under | 2 |
| Section 14-135.08 for that fiscal year.
From the effective date | 3 |
| of this amendatory Act of the 93rd General
Assembly through the | 4 |
| payment of the final payroll from fiscal year 2004
| 5 |
| appropriations, the several departments shall not make | 6 |
| contributions
for the remainder of fiscal year 2004 but shall | 7 |
| instead make payments
as required under subsection (a-1) of | 8 |
| Section 14.1 of the State Finance Act.
The several departments | 9 |
| shall resume those contributions at the commencement of
fiscal | 10 |
| year 2005.
| 11 |
| (d) If an employee is paid from trust funds or federal | 12 |
| funds, the
department or other employer shall pay employer | 13 |
| contributions from those funds
to the System at the certified | 14 |
| rate, unless the terms of the trust or the
federal-State | 15 |
| agreement preclude the use of the funds for that purpose, in
| 16 |
| which case the required employer contributions shall be paid by | 17 |
| the State.
From the effective date of this amendatory
Act of | 18 |
| the 93rd General Assembly through the payment of the final
| 19 |
| payroll from fiscal year 2004 appropriations, the department or | 20 |
| other
employer shall not pay contributions for the remainder of | 21 |
| fiscal year
2004 but shall instead make payments as required | 22 |
| under subsection (a-1) of
Section 14.1 of the State Finance | 23 |
| Act. The department or other employer shall
resume payment of
| 24 |
| contributions at the commencement of fiscal year 2005.
| 25 |
| (e) The calculation of the minimum contribution under this | 26 |
| subsection (e) shall not be affected by the changes made to |
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| Sections 14-119, 14-121, 14-130, and 14-133 by this amendatory | 2 |
| Act of the 95th General Assembly.
| 3 |
| For State fiscal years 2011 through 2045, the minimum | 4 |
| contribution
to the System to be made by the State for each | 5 |
| fiscal year shall be an amount
determined by the System to be | 6 |
| sufficient to bring the total assets of the
System up to 90% of | 7 |
| the total actuarial liabilities of the System by the end
of | 8 |
| State fiscal year 2045. In making these determinations, the | 9 |
| required State
contribution shall be calculated each year as a | 10 |
| level percentage of payroll
over the years remaining to and | 11 |
| including fiscal year 2045 and shall be
determined under the | 12 |
| projected unit credit actuarial cost method.
| 13 |
| For State fiscal years 1996 through 2005, the State | 14 |
| contribution to
the System, as a percentage of the applicable | 15 |
| employee payroll, shall be
increased in equal annual increments | 16 |
| so that by State fiscal year 2011, the
State is contributing at | 17 |
| the rate required under this Section; except that
(i) for State | 18 |
| fiscal year 1998, for all purposes of this Code and any other
| 19 |
| law of this State, the certified percentage of the applicable | 20 |
| employee payroll
shall be 5.052% for employees earning eligible | 21 |
| creditable service under Section
14-110 and 6.500% for all | 22 |
| other employees, notwithstanding any contrary
certification | 23 |
| made under Section 14-135.08 before the effective date of this
| 24 |
| amendatory Act of 1997, and (ii)
in the following specified | 25 |
| State fiscal years, the State contribution to
the System shall | 26 |
| not be less than the following indicated percentages of the
|
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| applicable employee payroll, even if the indicated percentage | 2 |
| will produce a
State contribution in excess of the amount | 3 |
| otherwise required under this
subsection and subsection (a):
| 4 |
| 9.8% in FY 1999;
10.0% in FY 2000;
10.2% in FY 2001;
10.4% in FY | 5 |
| 2002;
10.6% in FY 2003; and
10.8% in FY 2004.
| 6 |
| Notwithstanding any other provision of this Article, the | 7 |
| total required State
contribution to the System for State | 8 |
| fiscal year 2006 is $203,783,900.
| 9 |
| Notwithstanding any other provision of this Article, the | 10 |
| total required State
contribution to the System for State | 11 |
| fiscal year 2007 is $344,164,400.
| 12 |
| For each of State fiscal years 2008 through 2010, the State | 13 |
| contribution to
the System, as a percentage of the applicable | 14 |
| employee payroll, shall be
increased in equal annual increments | 15 |
| from the required State contribution for State fiscal year | 16 |
| 2007, so that by State fiscal year 2011, the
State is | 17 |
| contributing at the rate otherwise required under this Section.
| 18 |
| Beginning in State fiscal year 2046, the minimum State | 19 |
| contribution for
each fiscal year shall be the amount needed to | 20 |
| maintain the total assets of
the System at 90% of the total | 21 |
| actuarial liabilities of the System.
| 22 |
| Amounts received by the System pursuant to Section 25 of | 23 |
| the Budget Stabilization Act in any fiscal year do not reduce | 24 |
| and do not constitute payment of any portion of the minimum | 25 |
| State contribution required under this Article in that fiscal | 26 |
| year. Such amounts shall not reduce, and shall not be included |
|
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| in the calculation of, the required State contributions under | 2 |
| this Article in any future year until the System has reached a | 3 |
| funding ratio of at least 90%. A reference in this Article to | 4 |
| the "required State contribution" or any substantially similar | 5 |
| term does not include or apply to any amounts payable to the | 6 |
| System under Section 25 of the Budget Stabilization Act.
| 7 |
| Notwithstanding any other provision of this Section, the | 8 |
| required State
contribution for State fiscal year 2005 and for | 9 |
| fiscal year 2008 and each fiscal year thereafter, as
calculated | 10 |
| under this Section and
certified under Section 14-135.08, shall | 11 |
| not exceed an amount equal to (i) the
amount of the required | 12 |
| State contribution that would have been calculated under
this | 13 |
| Section for that fiscal year if the System had not received any | 14 |
| payments
under subsection (d) of Section 7.2 of the General | 15 |
| Obligation Bond Act, minus
(ii) the portion of the State's | 16 |
| total debt service payments for that fiscal
year on the bonds | 17 |
| issued for the purposes of that Section 7.2, as determined
and | 18 |
| certified by the Comptroller, that is the same as the System's | 19 |
| portion of
the total moneys distributed under subsection (d) of | 20 |
| Section 7.2 of the General
Obligation Bond Act. In determining | 21 |
| this maximum for State fiscal years 2008 through 2010, however, | 22 |
| the amount referred to in item (i) shall be increased, as a | 23 |
| percentage of the applicable employee payroll, in equal | 24 |
| increments calculated from the sum of the required State | 25 |
| contribution for State fiscal year 2007 plus the applicable | 26 |
| portion of the State's total debt service payments for fiscal |
|
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| year 2007 on the bonds issued for the purposes of Section 7.2 | 2 |
| of the General
Obligation Bond Act, so that, by State fiscal | 3 |
| year 2011, the
State is contributing at the rate otherwise | 4 |
| required under this Section.
| 5 |
| (f) After the submission of all payments for eligible | 6 |
| employees
from personal services line items in fiscal year 2004 | 7 |
| have been made,
the Comptroller shall provide to the System a | 8 |
| certification of the sum
of all fiscal year 2004 expenditures | 9 |
| for personal services that would
have been covered by payments | 10 |
| to the System under this Section if the
provisions of this | 11 |
| amendatory Act of the 93rd General Assembly had not been
| 12 |
| enacted. Upon
receipt of the certification, the System shall | 13 |
| determine the amount
due to the System based on the full rate | 14 |
| certified by the Board under
Section 14-135.08 for fiscal year | 15 |
| 2004 in order to meet the State's
obligation under this | 16 |
| Section. The System shall compare this amount
due to the amount | 17 |
| received by the System in fiscal year 2004 through
payments | 18 |
| under this Section and under Section 6z-61 of the State Finance | 19 |
| Act.
If the amount
due is more than the amount received, the | 20 |
| difference shall be termed the
"Fiscal Year 2004 Shortfall" for | 21 |
| purposes of this Section, and the
Fiscal Year 2004 Shortfall | 22 |
| shall be satisfied under Section 1.2 of the State
Pension Funds | 23 |
| Continuing Appropriation Act. If the amount due is less than | 24 |
| the
amount received, the
difference shall be termed the "Fiscal | 25 |
| Year 2004 Overpayment" for purposes of
this Section, and the | 26 |
| Fiscal Year 2004 Overpayment shall be repaid by
the System to |
|
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| the Pension Contribution Fund as soon as practicable
after the | 2 |
| certification.
| 3 |
| (Source: P.A. 93-2, eff. 4-7-03; 93-665, eff. 3-5-04; 94-4, | 4 |
| eff. 6-1-05; 94-839, eff. 6-6-06.)
| 5 |
| (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
| 6 |
| Sec. 14-133. Contributions on behalf of members.
| 7 |
| (a) Each participating employee shall make contributions | 8 |
| to the System,
based on the employee's compensation, as | 9 |
| follows:
| 10 |
| (1) Covered employees, except as indicated below, 3.5% | 11 |
| for
retirement annuity, and 0.5% for a widow or survivors
| 12 |
| annuity . After June 30, 2008, the retirement contribution | 13 |
| for a covered employee is increased 0.6% if the Social | 14 |
| Security offset is removed from his or her widow's or | 15 |
| survivors annuity, thus making his or her total | 16 |
| contribution for that purpose 1.1%. ;
| 17 |
| (2) Noncovered employees, except as indicated below, | 18 |
| 7% for retirement
annuity and 1% for a widow or survivors | 19 |
| annuity . ;
| 20 |
| (3) Noncovered employees serving in a position in which | 21 |
| "eligible
creditable service" as defined in Section 14-110 | 22 |
| may be earned, 1% for a widow
or survivors annuity
plus the | 23 |
| following amount for retirement annuity: 8.5% through | 24 |
| December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% | 25 |
| in 2004 and thereafter . ;
|
|
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| (4) Covered employees serving in a position in which | 2 |
| "eligible creditable
service" as defined in Section 14-110 | 3 |
| may be earned, 0.5% for a widow or survivors annuity ,
plus | 4 |
| the following amount for retirement annuity: 5% through | 5 |
| December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 | 6 |
| and thereafter . After June 30, 2008, the retirement | 7 |
| contribution for a covered employee is increased 0.6% to | 8 |
| remove the Social Security offset from his or her widow's | 9 |
| or survivors annuity, thus making his or her total | 10 |
| contribution for that purpose 1.1%. ;
| 11 |
| (5) Each security employee of the Department of | 12 |
| Corrections
or of the Department of Human Services who is a | 13 |
| covered employee, 0.5% for a widow or survivors annuity ,
| 14 |
| plus the following amount for retirement annuity: 5% | 15 |
| through December 31,
2001; 6% in 2002; 7% in 2003; and 8% | 16 |
| in 2004 and thereafter . After June 30, 2008, the retirement | 17 |
| contribution for a covered employee is increased 0.6% to | 18 |
| remove the Social Security offset from his or her widow's | 19 |
| or survivors annuity, thus making his or her total | 20 |
| contribution for that purpose 1.1%. ;
| 21 |
| (6) Each security employee of the Department of | 22 |
| Corrections
or of the Department of Human Services who is | 23 |
| not a covered employee, 1% for a widow or survivors annuity
| 24 |
| plus the following amount for retirement annuity: 8.5% | 25 |
| through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and | 26 |
| 11.5% in 2004 and thereafter.
|
|
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| (b) Contributions shall be in the form of a deduction from
| 2 |
| compensation and shall be made notwithstanding that the | 3 |
| compensation
paid in cash to the employee shall be reduced | 4 |
| thereby below the minimum
prescribed by law or regulation. Each | 5 |
| member is deemed to consent and
agree to the deductions from | 6 |
| compensation provided for in this Article,
and shall receipt in | 7 |
| full for salary or compensation.
| 8 |
| (c) The increase in contributions by covered members for | 9 |
| widow or survivors annuity purposes provided by this amendatory | 10 |
| Act of the 95th General Assembly does not apply to persons who | 11 |
| first become members of the System on or after July 1, 2013, if | 12 |
| the new benefit increase created by this amendatory Act expires | 13 |
| in accordance with Section 14-152.1(d) and Section 14-152.2.
| 14 |
| (Source: P.A. 92-14, eff. 6-28-01.)
| 15 |
| (40 ILCS 5/14-152.2 new)
| 16 |
| Sec. 14-152.2. New benefit increases. The General Assembly | 17 |
| finds and declares that the amendment to Sections 14-119 and | 18 |
| 14-121 made by this amendatory Act of the 95th General | 19 |
| Assembly, which removes the social security offset from certain | 20 |
| widow's and survivors annuities beginning July 1, 2008, | 21 |
| constitutes a new benefit increase within the meaning of | 22 |
| Section 14-152.1. Funding for this new benefit increase will be | 23 |
| provided by the additional employee contributions made under | 24 |
| Section 14-133 by this amendatory Act. | 25 |
| Unless this new benefit increase is extended by the General |
|
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| Assembly, it will expire on July 1, 2013. If this new benefit | 2 |
| increase expires: | 3 |
| (i) for persons who first become members of the System | 4 |
| on or after the July 1, 2013 expiration date (and their | 5 |
| widows and survivors), the social security offsets under | 6 |
| Section 14-119(d) and Section 14-121(g), as they existed | 7 |
| immediately prior to the effective date of this amendatory | 8 |
| Act, are reinstated, and the increase in contributions by | 9 |
| covered members for widow or survivors annuity purposes | 10 |
| under Section 14-133 does not apply; and | 11 |
| (ii) for persons who first become members of the System | 12 |
| before July 1, 2013 and made the required elective | 13 |
| contributions under Section 14-133 (and their widows and | 14 |
| survivors), the social security offsets under Section | 15 |
| 14-119(d) and Section 14-121(g) remain inapplicable after | 16 |
| July 1, 2008 and the increase in contributions by covered | 17 |
| members for widow or survivors annuity purposes under | 18 |
| Section 14-133 remains in effect.
| 19 |
| Section 99. Effective date. This Act takes effect upon | 20 |
| becoming law.".
|
|