Full Text of HB4622 97th General Assembly
HB4622ham001 97TH GENERAL ASSEMBLY | Rep. Elaine Nekritz Filed: 2/21/2012
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| 1 | | AMENDMENT TO HOUSE BILL 4622
| 2 | | AMENDMENT NO. ______. Amend House Bill 4622 on page 1, in | 3 | | line 5, by changing "and 7-220" to "7-220, 15-113, 15-135, | 4 | | 15-136, 15-136.4, 15-139, and 15-153.2"; and
| 5 | | on page 19, below line 12, by inserting the following:
| 6 | | "(40 ILCS 5/15-113) (from Ch. 108 1/2, par. 15-113)
| 7 | | Sec. 15-113. Service. "Service": The periods defined in | 8 | | Sections
15-113.1 through 15-113.9 and Section 15-113.11 .
| 9 | | (Source: P.A. 84-1472.)
| 10 | | (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
| 11 | | Sec. 15-135. Retirement annuities - Conditions.
| 12 | | (a) A participant who retires in one of the following | 13 | | specified years with
the specified amount of service is | 14 | | entitled to a retirement annuity at any age
under the | 15 | | retirement program applicable to the participant:
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| 1 | | 35 years if retirement is in 1997 or before;
| 2 | | 34 years if retirement is in 1998;
| 3 | | 33 years if retirement is in 1999;
| 4 | | 32 years if retirement is in 2000;
| 5 | | 31 years if retirement is in 2001;
| 6 | | 30 years if retirement is in 2002 or later.
| 7 | | A participant with 8 or more years of service after | 8 | | September 1, 1941, is
entitled to a retirement annuity on or | 9 | | after attainment of age 55.
| 10 | | A participant with at least 5 but less than 8 years
of | 11 | | service after September 1, 1941, is entitled to a retirement | 12 | | annuity on
or after attainment of age 62.
| 13 | | A participant who has at least 25 years of service in this | 14 | | system as a
police officer or firefighter is entitled to a | 15 | | retirement
annuity on or after the attainment of age 50, if | 16 | | Rule 4 of Section
15-136 is applicable to the participant.
| 17 | | (b) The annuity payment period shall begin on the date | 18 | | specified by the
participant or the recipient of a disability | 19 | | retirement annuity submitting a written application, which | 20 | | date shall not be prior
to termination of employment or more | 21 | | than one year before the application is
received by the board; | 22 | | however, if the participant is not an employee of an
employer | 23 | | participating in this System or in a participating system as | 24 | | defined
in Article 20 of this Code on April 1 of the calendar | 25 | | year next following
the calendar year in which the participant | 26 | | attains age 70 1/2, the annuity
payment period shall begin on |
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| 1 | | that date regardless of whether an application
has been filed.
| 2 | | (c) An annuity is not payable if the amount provided under | 3 | | Section
15-136 is less than $10 per month.
| 4 | | (Source: P.A. 92-749, eff. 8-2-02 .)
| 5 | | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
| 6 | | Sec. 15-136. Retirement annuities - Amount. The provisions | 7 | | of this
Section 15-136 apply only to those participants who are | 8 | | participating in the
traditional benefit package or the | 9 | | portable benefit package and do not
apply to participants who | 10 | | are participating in the self-managed plan.
| 11 | | (a) The amount of a participant's retirement annuity, | 12 | | expressed in the form
of a single-life annuity, shall be | 13 | | determined by whichever of the following
rules is applicable | 14 | | and provides the largest annuity:
| 15 | | Rule 1: The retirement annuity shall be 1.67% of final rate | 16 | | of earnings for
each of the first 10 years of service, 1.90% | 17 | | for each of the next 10 years of
service, 2.10% for each year | 18 | | of service in excess of 20 but not exceeding 30,
and 2.30% for | 19 | | each year in excess of 30; or for persons who retire on or
| 20 | | after January 1, 1998, 2.2% of the final rate of earnings for | 21 | | each year of
service.
| 22 | | Rule 2: The retirement annuity shall be the sum of the | 23 | | following,
determined from amounts credited to the participant | 24 | | in accordance with the
actuarial tables and the effective | 25 | | prescribed rate of interest in effect at the
time the |
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| 1 | | retirement annuity begins:
| 2 | | (i) the normal annuity which can be provided on an | 3 | | actuarially
equivalent basis, by the accumulated normal | 4 | | contributions as of
the date the annuity begins;
| 5 | | (ii) an annuity from employer contributions of an | 6 | | amount equal to that
which can be provided on an | 7 | | actuarially equivalent basis from the accumulated
normal | 8 | | contributions made by the participant under Section | 9 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other | 10 | | accumulated normal contributions made by
the participant; | 11 | | and
| 12 | | (iii) the annuity that can be provided on an | 13 | | actuarially equivalent basis
from the entire contribution | 14 | | made by the participant under Section 15-113.3.
| 15 | | With respect to a police officer or firefighter who retires | 16 | | on or after
August 14, 1998, the accumulated normal | 17 | | contributions taken into account under
clauses (i) and (ii) of | 18 | | this Rule 2 shall include the additional normal
contributions | 19 | | made by the police officer or firefighter under Section
| 20 | | 15-157(a).
| 21 | | The amount of a retirement annuity calculated under this | 22 | | Rule 2 shall
be computed solely on the basis of the | 23 | | participant's accumulated normal
contributions, as specified | 24 | | in this Rule and defined in Section 15-116.
Neither an employee | 25 | | or employer contribution for early retirement under
Section | 26 | | 15-136.2 nor any other employer contribution shall be used in |
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| 1 | | the
calculation of the amount of a retirement annuity under | 2 | | this Rule 2.
| 3 | | This amendatory Act of the 91st General Assembly is a | 4 | | clarification of
existing law and applies to every participant | 5 | | and annuitant without regard to
whether status as an employee | 6 | | terminates before the effective date of this
amendatory Act.
| 7 | | This Rule 2 does not apply to a person who first becomes an | 8 | | employee under this Article on or after July 1, 2005.
| 9 | | Rule 3: The retirement annuity of a participant who is | 10 | | employed
at least one-half time during the period on which his | 11 | | or her final rate of
earnings is based, shall be equal to the | 12 | | participant's years of service
not to exceed 30, multiplied by | 13 | | (1) $96 if the participant's final rate
of earnings is less | 14 | | than $3,500, (2) $108 if the final rate of earnings is
at least | 15 | | $3,500 but less than $4,500, (3) $120 if the final rate of | 16 | | earnings
is at least $4,500 but less than $5,500, (4) $132 if | 17 | | the final rate
of earnings is at least $5,500 but less than | 18 | | $6,500, (5)
$144 if the final rate of earnings is at least | 19 | | $6,500 but less than
$7,500, (6) $156 if the final rate of | 20 | | earnings is at least $7,500 but less
than $8,500, (7) $168 if | 21 | | the final rate of earnings is at least $8,500 but
less than | 22 | | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
| 23 | | more, except that the annuity for those persons having made an | 24 | | election under
Section 15-154(a-1) shall be calculated and | 25 | | payable under the portable
retirement benefit program pursuant | 26 | | to the provisions of Section 15-136.4.
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| 1 | | Rule 4: A participant who is at least age 50 and has 25 or | 2 | | more years of
service as a police officer or firefighter, and a | 3 | | participant who is age 55 or
over and has at least 20 but less | 4 | | than 25 years of service as a police officer
or firefighter, | 5 | | shall be entitled to a retirement annuity of 2 1/4% of the
| 6 | | final rate of earnings for each of the first 10 years of | 7 | | service as a police
officer or firefighter, 2 1/2% for each of | 8 | | the next 10 years of service as a
police officer or | 9 | | firefighter, and 2 3/4% for each year of service as a police
| 10 | | officer or firefighter in excess of 20. The retirement annuity | 11 | | for all other
service shall be computed under Rule 1.
| 12 | | For purposes of this Rule 4, a participant's service as a | 13 | | firefighter
shall also include the following:
| 14 | | (i) service that is performed while the person is an | 15 | | employee under
subsection (h) of Section 15-107; and
| 16 | | (ii) in the case of an individual who was a | 17 | | participating employee
employed in the fire department of | 18 | | the University of Illinois's
Champaign-Urbana campus | 19 | | immediately prior to the elimination of that fire
| 20 | | department and who immediately after the elimination of | 21 | | that fire department
transferred to another job with the | 22 | | University of Illinois, service performed
as an employee of | 23 | | the University of Illinois in a position other than police
| 24 | | officer or firefighter, from the date of that transfer | 25 | | until the employee's
next termination of service with the | 26 | | University of Illinois.
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| 1 | | Rule 5: The retirement annuity of a participant who elected | 2 | | early
retirement under the provisions of Section 15-136.2 and | 3 | | who, on or before
February 16, 1995, brought administrative | 4 | | proceedings pursuant to the
administrative rules adopted by the | 5 | | System to challenge the calculation of his
or her retirement | 6 | | annuity shall be the sum of the following, determined from
| 7 | | amounts credited to the participant in accordance with the | 8 | | actuarial tables and
the prescribed rate of interest in effect | 9 | | at the time the retirement annuity
begins:
| 10 | | (i) the normal annuity which can be provided on an | 11 | | actuarially equivalent
basis, by the accumulated normal | 12 | | contributions as of the date the annuity
begins; and
| 13 | | (ii) an annuity from employer contributions of an | 14 | | amount equal to that
which can be provided on an | 15 | | actuarially equivalent basis from the accumulated
normal | 16 | | contributions made by the participant under Section | 17 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other | 18 | | accumulated normal contributions made by the
participant; | 19 | | and
| 20 | | (iii) an annuity which can be provided on an | 21 | | actuarially equivalent basis
from the employee | 22 | | contribution for early retirement under Section 15-136.2, | 23 | | and
an annuity from employer contributions of an amount | 24 | | equal to that which can be
provided on an actuarially | 25 | | equivalent basis from the employee contribution for
early | 26 | | retirement under Section 15-136.2.
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| 1 | | In no event shall a retirement annuity under this Rule 5 be | 2 | | lower than the
amount obtained by adding (1) the monthly amount | 3 | | obtained by dividing the
combined employee and employer | 4 | | contributions made under Section 15-136.2 by the
System's | 5 | | annuity factor for the age of the participant at the beginning | 6 | | of the
annuity payment period and (2) the amount equal to the | 7 | | participant's annuity if
calculated under Rule 1, reduced under | 8 | | Section 15-136(b) as if no
contributions had been made under | 9 | | Section 15-136.2.
| 10 | | With respect to a participant who is qualified for a | 11 | | retirement annuity under
this Rule 5 whose retirement annuity | 12 | | began before the effective date of this
amendatory Act of the | 13 | | 91st General Assembly, and for whom an employee
contribution | 14 | | was made under Section 15-136.2, the System shall recalculate | 15 | | the
retirement annuity under this Rule 5 and shall pay any | 16 | | additional amounts due
in the manner provided in Section | 17 | | 15-186.1 for benefits mistakenly set too low.
| 18 | | The amount of a retirement annuity calculated under this | 19 | | Rule 5 shall be
computed solely on the basis of those | 20 | | contributions specifically set forth in
this Rule 5. Except as | 21 | | provided in clause (iii) of this Rule 5, neither an
employee | 22 | | nor employer contribution for early retirement under Section | 23 | | 15-136.2,
nor any other employer contribution, shall be used in | 24 | | the calculation of the
amount of a retirement annuity under | 25 | | this Rule 5.
| 26 | | The General Assembly has adopted the changes set forth in |
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| 1 | | Section 25 of this
amendatory Act of the 91st General Assembly | 2 | | in recognition that the decision of
the Appellate Court for the | 3 | | Fourth District in Mattis v. State Universities
Retirement | 4 | | System et al. might be deemed to give some right to the | 5 | | plaintiff in
that case. The changes made by Section 25 of this | 6 | | amendatory Act of the 91st
General Assembly are a legislative | 7 | | implementation of the decision of the
Appellate Court for the | 8 | | Fourth District in Mattis v. State Universities
Retirement | 9 | | System et al. with respect to that plaintiff.
| 10 | | The changes made by Section 25 of this amendatory Act of | 11 | | the 91st General
Assembly apply without regard to whether the | 12 | | person is in service as an
employee on or after its effective | 13 | | date.
| 14 | | (b) The retirement annuity provided under Rules 1 and 3 | 15 | | above shall be
reduced by 1/2 of 1% for each month the | 16 | | participant is under age 60 at the
time of retirement. However, | 17 | | this reduction shall not apply in the following
cases:
| 18 | | (1) For a disabled participant whose disability | 19 | | benefits have been
discontinued because he or she has | 20 | | exhausted eligibility for disability
benefits under clause | 21 | | (6) of Section 15-152;
| 22 | | (2) For a participant who has at least the number of | 23 | | years of service
required to retire at any age under | 24 | | subsection (a) of Section 15-135; or
| 25 | | (3) For that portion of a retirement annuity which has | 26 | | been provided on
account of service of the participant |
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| 1 | | during periods when he or she performed
the duties of a | 2 | | police officer or firefighter, if these duties were | 3 | | performed
for at least 5 years immediately preceding the | 4 | | date the retirement annuity
is to begin.
| 5 | | (c) The maximum retirement annuity provided under Rules 1, | 6 | | 2, 4,
and 5
shall be the lesser of (1) the annual limit of | 7 | | benefits as specified in
Section 415 of the Internal Revenue | 8 | | Code of 1986, as such Section may be
amended from time to time | 9 | | and as such benefit limits shall be adjusted by
the | 10 | | Commissioner of Internal Revenue, and (2) 80% of final rate of
| 11 | | earnings.
| 12 | | (d) An annuitant whose status as an employee terminates | 13 | | after August 14,
1969 shall receive automatic increases in his | 14 | | or her retirement annuity as
follows:
| 15 | | Effective January 1 immediately following the date the | 16 | | retirement annuity
begins, the annuitant shall receive an | 17 | | increase in his or her monthly
retirement annuity of 0.125% of | 18 | | the monthly retirement annuity provided under
Rule 1, Rule 2, | 19 | | Rule 3, Rule 4, or Rule 5, contained in this
Section, | 20 | | multiplied by
the number of full months which elapsed from the | 21 | | date the retirement annuity
payments began to January 1, 1972, | 22 | | plus 0.1667% of such annuity, multiplied by
the number of full | 23 | | months which elapsed from January 1, 1972, or the date the
| 24 | | retirement annuity payments began, whichever is later, to | 25 | | January 1, 1978, plus
0.25% of such annuity multiplied by the | 26 | | number of full months which elapsed
from January 1, 1978, or |
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| 1 | | the date the retirement annuity payments began,
whichever is | 2 | | later, to the effective date of the increase.
| 3 | | The annuitant shall receive an increase in his or her | 4 | | monthly retirement
annuity on each January 1 thereafter during | 5 | | the annuitant's life of 3% of
the monthly annuity provided | 6 | | under Rule 1, Rule 2, Rule 3, Rule 4, or
Rule 5 contained
in | 7 | | this Section. The change made under this subsection by P.A. | 8 | | 81-970 is
effective January 1, 1980 and applies to each | 9 | | annuitant whose status as
an employee terminates before or | 10 | | after that date.
| 11 | | Beginning January 1, 1990, all automatic annual increases | 12 | | payable under
this Section shall be calculated as a percentage | 13 | | of the total annuity
payable at the time of the increase, | 14 | | including all increases previously
granted under this Article.
| 15 | | The change made in this subsection by P.A. 85-1008 is | 16 | | effective January
26, 1988, and is applicable without regard to | 17 | | whether status as an employee
terminated before that date.
| 18 | | (e) If, on January 1, 1987, or the date the retirement | 19 | | annuity payment
period begins, whichever is later, the sum of | 20 | | the retirement annuity
provided under Rule 1 or Rule 2 of this | 21 | | Section
and the automatic annual increases provided under the | 22 | | preceding subsection
or Section 15-136.1, amounts to less than | 23 | | the retirement
annuity which would be provided by Rule 3, the | 24 | | retirement
annuity shall be increased as of January 1, 1987, or | 25 | | the date the
retirement annuity payment period begins, | 26 | | whichever is later, to the amount
which would be provided by |
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| 1 | | Rule 3 of this Section. Such increased
amount shall be | 2 | | considered as the retirement annuity in determining
benefits | 3 | | provided under other Sections of this Article. This paragraph
| 4 | | applies without regard to whether status as an employee | 5 | | terminated before the
effective date of this amendatory Act of | 6 | | 1987, provided that the annuitant was
employed at least | 7 | | one-half time during the period on which the final rate of
| 8 | | earnings was based.
| 9 | | (f) A participant is entitled to such additional annuity as | 10 | | may be provided
on an actuarially equivalent basis, by any | 11 | | accumulated
additional contributions to his or her credit. | 12 | | However,
the additional contributions made by the participant | 13 | | toward the automatic
increases in annuity provided under this | 14 | | Section shall not be taken into
account in determining the | 15 | | amount of such additional annuity.
| 16 | | (g) If, (1) by law, a function of a governmental unit, as | 17 | | defined by Section
20-107 of this Code, is transferred in whole | 18 | | or in part to an employer, and (2)
a participant transfers | 19 | | employment from such governmental unit to such employer
within | 20 | | 6 months after the transfer of the function, and (3) the sum of | 21 | | (A) the
annuity payable to the participant under Rule 1, 2, or | 22 | | 3 of this Section (B)
all proportional annuities payable to the | 23 | | participant by all other retirement
systems covered by Article | 24 | | 20, and (C) the initial primary insurance amount to
which the | 25 | | participant is entitled under the Social Security Act, is less | 26 | | than
the retirement annuity which would have been payable if |
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| 1 | | all of the
participant's pension credits validated under | 2 | | Section 20-109 had been validated
under this system, a | 3 | | supplemental annuity equal to the difference in such
amounts | 4 | | shall be payable to the participant.
| 5 | | (h) On January 1, 1981, an annuitant who was receiving
a | 6 | | retirement annuity on or before January 1, 1971 shall have his | 7 | | or her
retirement annuity then being paid increased $1 per | 8 | | month for
each year of creditable service. On January 1, 1982, | 9 | | an annuitant whose
retirement annuity began on or before | 10 | | January 1, 1977, shall have his or her
retirement annuity then | 11 | | being paid increased $1 per month for each year of
creditable | 12 | | service.
| 13 | | (i) On January 1, 1987, any annuitant whose retirement | 14 | | annuity began on or
before January 1, 1977, shall have the | 15 | | monthly retirement annuity increased by
an amount equal to 8˘ | 16 | | per year of creditable service times the number of years
that | 17 | | have elapsed since the annuity began.
| 18 | | (Source: P.A. 93-347, eff. 7-24-03; 94-4, eff. 6-1-05.)
| 19 | | (40 ILCS 5/15-136.4)
| 20 | | Sec. 15-136.4. Retirement and Survivor Benefits Under | 21 | | Portable
Benefit Package. | 22 | | (a) This Section 15-136.4 describes the form of annuity and | 23 | | survivor
benefits available to a participant who has elected | 24 | | the portable benefit
package and has completed the one-year | 25 | | waiting period required under subsection
(e) of Section |
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| 1 | | 15-134.5. For purposes of this Section, the term
"eligible | 2 | | spouse" means the husband or wife of a participant to whom the
| 3 | | participant is married on the date the participant's annuity
| 4 | | payment period begins, provided however, that if the | 5 | | participant should die prior
to the commencement of retirement | 6 | | annuity benefits, then "eligible spouse"
means the husband or | 7 | | wife, if any, to whom
the participant was married throughout | 8 | | the one-year period preceding the date
of his or her death.
| 9 | | (b) This subsection (b) describes the normal form of | 10 | | annuity payable
to a participant subject to this Section | 11 | | 15-136.4. If the participant is
unmarried on the date his or | 12 | | her annuity payment period begins, then the annuity
payments | 13 | | shall be made in the form of a single-life annuity as described | 14 | | in
Section 15-118. If the participant is married on the date | 15 | | his or her annuity
payments commence, then the annuity payments | 16 | | shall be paid in the form of a
qualified joint and survivor | 17 | | annuity that is the actuarial equivalent of the
single-life | 18 | | annuity. Under the "qualified joint and survivor annuity", a
| 19 | | reduced amount shall be paid to the participant for his or her | 20 | | lifetime and his
or her eligible spouse, if surviving at the | 21 | | participant's death, shall be
entitled to receive thereafter a | 22 | | lifetime survivorship annuity in a monthly
amount equal to 50% | 23 | | of the reduced monthly amount that was payable to the
| 24 | | participant. The last payment of a qualified joint and survivor | 25 | | annuity shall
be made as of the first day of the month in which | 26 | | the death of the survivor
occurs.
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| 1 | | (c) Instead of the normal form of annuity that would be | 2 | | paid under
subsection (b), a participant may elect in writing | 3 | | within the 180-day 90-day period
prior to the date his or her | 4 | | annuity payments commence to waive the normal form
of annuity | 5 | | payment and receive an optional form of payment as described in
| 6 | | subsection (h). If the participant is married and elects an | 7 | | optional form of
payment under subsection (h) other than a | 8 | | joint and survivor annuity with the
eligible spouse designated | 9 | | as the contingent annuitant, then such election
shall require | 10 | | the consent of his or her eligible spouse in the manner | 11 | | described
in subsection (d). At any time during the 180-day | 12 | | 90-day period preceding the date the
participant's payment | 13 | | period begins, the participant may revoke the optional form
of | 14 | | payment elected under this subsection (c) and reinstate | 15 | | coverage under the qualified
joint and survivor annuity without | 16 | | the spouse's consent, but an election to
revoke the optional | 17 | | form elected and elect a new optional form of payment or | 18 | | designate a
different contingent annuitant shall not be | 19 | | effective without the eligible
spouse's consent.
| 20 | | (d) The eligible spouse's consent to any election made
| 21 | | pursuant to this Section that requires the eligible spouse's | 22 | | consent shall be
in writing and shall acknowledge the effect of | 23 | | the consent. In addition, the
eligible spouse's signature on | 24 | | the written consent must be witnessed by a
notary public. The | 25 | | eligible spouse's consent need not be obtained if the
system is | 26 | | satisfied that there is no eligible spouse, that the eligible |
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| 1 | | spouse
cannot be located, or because of any other relevant | 2 | | circumstances. An eligible
spouse's consent under this Section | 3 | | is valid only with respect to the specified
optional form of | 4 | | payment and, if applicable, contingent
annuitant designated by | 5 | | the participant. If the optional form of payment or
the | 6 | | contingent annuitant is subsequently changed (other than
by a | 7 | | revocation of the optional form of payment and reinstatement of | 8 | | the qualified joint
and survivor annuity), a new consent by the | 9 | | eligible spouse is required. The
eligible spouse's consent to | 10 | | an election made by a participant pursuant to this
Section, | 11 | | once made, may not be revoked by the eligible spouse.
| 12 | | (e) Within a reasonable period of time preceding the date a
| 13 | | participant's annuity commences, a participant shall be | 14 | | supplied with a written
explanation of (1) the terms and | 15 | | conditions of the normal form single-life
annuity and qualified | 16 | | joint and survivor annuity, (2) the
participant's right to | 17 | | elect a single-life annuity or an optional
form of payment | 18 | | under subsection (h) subject to his or her eligible
spouse's | 19 | | consent, if applicable, and (3) the participant's right to
| 20 | | reinstate coverage under the qualified joint and survivor | 21 | | annuity
prior to his or her annuity commencement date by | 22 | | revoking an election of an
optional form of payment under | 23 | | subsection (h).
| 24 | | (f) If a married participant with at least 1.5 years of
| 25 | | service dies prior to commencing retirement annuity payments | 26 | | and prior to
taking a refund under Section 15-154, his or her |
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| 1 | | eligible spouse is entitled
to receive a pre-retirement | 2 | | survivor annuity, if there is not then in effect
a waiver of | 3 | | the pre-retirement survivor annuity. The pre-retirement | 4 | | survivor
annuity payable under this subsection shall be a | 5 | | monthly annuity payable for
the eligible spouse's life, | 6 | | commencing as of the beginning of the month next
following the | 7 | | later of the date of the participant's death or the date the
| 8 | | participant would have first met the eligibility requirements | 9 | | for retirement,
and continuing through the beginning of the | 10 | | month in which the death of the
eligible spouse occurs. The | 11 | | monthly amount payable to the spouse under the
pre-retirement | 12 | | survivor annuity shall be equal to the monthly
amount that | 13 | | would be payable as a survivor annuity under the qualified | 14 | | joint
and survivor annuity described in subsection (b) if: (1) | 15 | | in the case of a
participant who dies on or after the date on | 16 | | which the participant has
met the eligibility requirements for | 17 | | retirement, the participant had retired
with an immediate | 18 | | qualified joint and
survivor annuity on the day before the | 19 | | participant's date of death; or (2) in
the case of a | 20 | | participant who dies before the earliest date on
which the | 21 | | participant would have met the eligibility requirements for | 22 | | retirement age, the participant had separated from
service on | 23 | | the date of death, survived to the earliest retirement age | 24 | | based
on service prior to his or her death, retired with an | 25 | | immediate qualified
joint and survivor annuity at the earliest | 26 | | retirement age, and died on the day
after the day on which the |
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| 1 | | participant would have attained the earliest
retirement age.
| 2 | | (g) A married participant who has not retired may elect at | 3 | | any time to
waive the pre-retirement survivor annuity described | 4 | | in subsection (f). Any
such election shall require the consent | 5 | | of the participant's eligible spouse
in the manner described in | 6 | | subsection (d). A waiver of the pre-retirement
survivor annuity | 7 | | shall increase the lump sum death benefit payable under
| 8 | | subsection (b) of Section 15-141. Prior to electing any waiver | 9 | | of the
pre-retirement survivor annuity, the participant shall | 10 | | be provided with a
written explanation of (1) the terms and | 11 | | conditions of the pre-retirement
survivor annuity and the death | 12 | | benefits payable from the system both with and
without the | 13 | | pre-retirement survivor annuity, (2) the participant's right | 14 | | to
elect a waiver of the pre-retirement survivor annuity | 15 | | coverage subject to his
or her spouse's consent, and (3) the | 16 | | participant's right to reinstate
pre-retirement survivor | 17 | | annuity coverage at any time by revoking a prior waiver
of such | 18 | | coverage.
| 19 | | (h) By filing a timely election with the system, a | 20 | | participant who will
be eligible to receive a retirement | 21 | | annuity under this Section may waive the
normal form of annuity | 22 | | payment described in subsection (b), subject to
obtaining the | 23 | | consent of his or her eligible spouse, if applicable, and elect
| 24 | | to receive any one of the following optional forms of payment:
| 25 | | (1) Joint and Survivor Annuity Options: The | 26 | | participant may elect to
receive a reduced annuity payable |
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| 1 | | for his or her life and to have a lifetime
survivorship | 2 | | annuity in a monthly amount equal to 50%, 75%, or 100% (as | 3 | | elected
by the participant) of that reduced monthly amount, | 4 | | to be paid after the
participant's death to his or her | 5 | | contingent annuitant, if the contingent
annuitant is alive | 6 | | at the time of the participant's death.
| 7 | | (2) Single-Life Annuity Option (optional for married | 8 | | participants). The
participant may elect to receive a | 9 | | single-life annuity payable for his or her
life only.
| 10 | | (3) Lump sum retirement benefit. The participant may | 11 | | elect to receive a
lump sum retirement benefit that is | 12 | | equal to the amount of a refund payable
under Section | 13 | | 15-154(a-2).
| 14 | | All joint and survivor annuity forms shall be in an amount that | 15 | | is the actuarial
equivalent of the single-life annuity.
| 16 | | For the purposes of this Section, the term "contingent | 17 | | annuitant" means the
beneficiary who is designated by a | 18 | | participant at the time the participant
elects a joint and | 19 | | survivor annuity to receive the lifetime survivorship
annuity | 20 | | in the event the beneficiary survives the participant at the
| 21 | | participant's death.
| 22 | | (i) Under no circumstances may an option be elected, | 23 | | changed, or revoked
after the date the participant's retirement | 24 | | annuity commences.
| 25 | | (j) An election made pursuant to subsection (h)
shall | 26 | | become inoperative if the participant or the
contingent |
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| 1 | | annuitant dies before the date the participant's annuity | 2 | | payments
commence, or if the eligible spouse's consent is | 3 | | required and not given.
| 4 | | (k) (Blank).
| 5 | | (l) The automatic annual increases described in subsection | 6 | | (d) of Section
15-136 shall apply to retirement benefits under | 7 | | the portable benefit package
and the automatic annual increases | 8 | | described in subsection (j) of Section
15-145 shall apply to | 9 | | survivor benefits under the portable benefit package.
| 10 | | (Source: P.A. 96-586, eff. 8-18-09.)
| 11 | | (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
| 12 | | Sec. 15-139.
Retirement annuities; cancellation; suspended | 13 | | during
employment.
| 14 | | (a) If an annuitant returns to employment for an employer
| 15 | | within 60 days after the beginning of the retirement annuity | 16 | | payment
period, the retirement annuity shall be cancelled, and | 17 | | the annuitant shall
refund to the System the total amount of | 18 | | the retirement annuity payments
which he or she received. If | 19 | | the retirement annuity is cancelled, the
participant shall | 20 | | continue to participate in the System.
| 21 | | (b) If an annuitant retires prior to age 60 and receives or | 22 | | becomes
entitled to receive during any month compensation in | 23 | | excess of the monthly
retirement annuity (including any | 24 | | automatic annual increases) for services
performed after the | 25 | | date of retirement for any employer under this System, that
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| 1 | | portion of the monthly
retirement annuity provided by employer | 2 | | contributions shall not be payable.
| 3 | | If an annuitant retires at age 60 or over and receives
or | 4 | | becomes entitled to receive during any academic year | 5 | | compensation in
excess of the difference between his or her | 6 | | highest annual earnings prior
to retirement and his or her | 7 | | annual retirement annuity computed under Rule
1, Rule 2, Rule | 8 | | 3, Rule 4, or Rule 5 of Section 15-136, or under Section
| 9 | | 15-136.4,
for services performed after
the date of retirement | 10 | | for any employer under this System, that portion of
the monthly | 11 | | retirement annuity provided by employer contributions shall be
| 12 | | reduced by an amount equal to the compensation that exceeds | 13 | | such difference.
| 14 | | However, any remuneration received for serving as a member | 15 | | of the
Illinois Educational Labor Relations Board shall be | 16 | | excluded from
"compensation" for the purposes of this | 17 | | subsection (b), and serving as a
member of the Illinois | 18 | | Educational Labor Relations Board shall not be
deemed to be a | 19 | | return to employment for the purposes of this Section.
This | 20 | | provision applies without regard to whether service was | 21 | | terminated
prior to the effective date of this amendatory Act | 22 | | of 1991.
| 23 | | (c) If an employer certifies that an annuitant has been | 24 | | reemployed
on a permanent and continuous basis or in a position
| 25 | | in which the annuitant is expected to serve for at least 9 | 26 | | months, the
annuitant shall resume his or her status as a |
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| 1 | | participating employee
and shall be entitled to all rights | 2 | | applicable to
participating employees upon filing with the | 3 | | board an
election to forego all annuity payments during the | 4 | | period
of reemployment. Upon subsequent retirement, the | 5 | | retirement
annuity shall consist of the annuity which was | 6 | | terminated by the reemployment,
plus the additional retirement | 7 | | annuity based upon service
granted during the period of | 8 | | reemployment, but the combined retirement
annuity shall not | 9 | | exceed the maximum
annuity applicable on the date of the last | 10 | | retirement.
| 11 | | The total service and earnings credited before and after | 12 | | the initial
date of retirement shall be considered in | 13 | | determining eligibility of the
employee or the employee's | 14 | | beneficiary to benefits under this
Article, and in calculating | 15 | | final rate of earnings.
| 16 | | In determining the death benefit
payable to a beneficiary | 17 | | of an annuitant who again becomes a participating
employee | 18 | | under this Section, accumulated normal and additional
| 19 | | contributions shall be considered as the sum of the accumulated | 20 | | normal and
additional contributions at the date of initial | 21 | | retirement and the
accumulated normal and additional | 22 | | contributions credited after that date,
less the sum of the | 23 | | annuity payments received by the annuitant.
| 24 | | The survivors insurance benefits provided under Section | 25 | | 15-145 shall not
be applicable to an annuitant who resumes his | 26 | | or her status as a
participating employee, unless the |
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| 1 | | annuitant, at the time of initial
retirement, has a survivors | 2 | | insurance beneficiary who could qualify
for such benefits.
| 3 | | If the participant's annuitant's employment is terminated | 4 | | because of circumstances
other than death before 9 months from | 5 | | the date of reemployment, the
provisions of this Section | 6 | | regarding resumption of status as a
participating employee | 7 | | shall not apply. The normal and survivors insurance
| 8 | | contributions which are deducted during this period shall be | 9 | | refunded to
the annuitant without interest, and subsequent | 10 | | benefits under this Article
shall be the same as those which | 11 | | were applicable prior to the date the
annuitant resumed | 12 | | employment.
| 13 | | The amendments made to this Section by this amendatory Act | 14 | | of the 91st
General Assembly apply without regard to whether | 15 | | the annuitant was in service
on or after the effective date of | 16 | | this amendatory Act.
| 17 | | (Source: P.A. 91-887 (Sections 10 and 25), eff. 7-6-00; 92-16, | 18 | | eff.
6-28-01.)
| 19 | | (40 ILCS 5/15-153.2) (from Ch. 108 1/2, par. 15-153.2)
| 20 | | Sec. 15-153.2. Disability retirement annuity. A | 21 | | participant whose
disability benefits are discontinued under | 22 | | the provisions of clause (6) of
Section 15-152 and who is not a | 23 | | participant in the optional retirement plan
established under | 24 | | Section 15-158.2 is entitled to a disability
retirement annuity | 25 | | of 35% of the basic compensation which was payable to the
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| 1 | | participant at the time that disability began, provided that | 2 | | the board determines that the participant has a medically | 3 | | determinable physical or
mental impairment that prevents him or | 4 | | her from
engaging in any substantial gainful activity, and | 5 | | which can be expected to
result in death or which has lasted or | 6 | | can be expected to last for a continuous
period of not less | 7 | | than 12 months.
| 8 | | The board's determination of whether a participant is | 9 | | disabled shall be
based upon:
| 10 | | (i) a written certificate from one or more licensed and | 11 | | practicing
physicians appointed by or acceptable to the | 12 | | board, stating that the
participant is unable to engage in | 13 | | any substantial gainful activity; and
| 14 | | (ii) any other medical examinations, hospital records, | 15 | | laboratory
results, or other information necessary for | 16 | | determining the employment
capacity and condition of the | 17 | | participant.
| 18 | | The terms "medically determinable physical or mental | 19 | | impairment" and
"substantial gainful activity" shall have the | 20 | | meanings ascribed to them in the
federal Social Security Act, | 21 | | as now or hereafter amended, and the
regulations issued | 22 | | thereunder.
| 23 | | The disability retirement annuity payment period shall | 24 | | begin immediately
following the expiration of the disability | 25 | | benefit payments under clause
(6) of Section 15-152 and shall | 26 | | be discontinued for a recipient of a disability retirement |
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| 1 | | annuity when (1) the physical or
mental impairment no longer | 2 | | prevents the participant from engaging in any
substantial | 3 | | gainful activity, (2) the participant dies or (3) the | 4 | | participant
elects to receive a retirement annuity under | 5 | | Sections 15-135 and 15-136.
If a person's disability retirement | 6 | | annuity is discontinued under clause
(1), all rights and | 7 | | credits accrued in the system on the date that the
disability | 8 | | retirement annuity began shall be restored, and the disability
| 9 | | retirement annuity paid shall be considered as disability | 10 | | payments under
clause (6) of Section 15-152.
| 11 | | (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-511, | 12 | | eff.
8-22-97; 90-766, eff. 8-14-98.)".
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