Full Text of HB4622 97th General Assembly
HB4622enr 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 7-170, 7-171, 7-172, 7-172.2, 7-173, 7-220, 15-113, | 6 | | 15-135, 15-136, 15-136.4, 15-139, and 15-153.2 as follows:
| 7 | | (40 ILCS 5/7-170) (from Ch. 108 1/2, par. 7-170)
| 8 | | Sec. 7-170. Federal Social Security coverage. | 9 | | (a) It is declared to be the policy and purpose to extend | 10 | | to covered
employees as defined in Section 7-138, the benefits | 11 | | of the Federal Old
Age and Survivors Insurance System as | 12 | | authorized by the Federal Social
Security Act and amendments | 13 | | thereto. To effect this, the board shall
take such action as | 14 | | may be required by applicable State and Federal laws
or | 15 | | regulations.
| 16 | | (b) The board shall execute an agreement with the State | 17 | | Agency to
secure coverage of covered employees as provided in | 18 | | paragraph (a) of
this section.
| 19 | | (c) Each participating municipality and each participating | 20 | | instrumentality
shall remit payment of contributions for | 21 | | Social Security purposes on behalf
of covered employees and | 22 | | covered municipalities and participating
instrumentalities
as | 23 | | required by applicable State and federal laws and regulations.
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| 1 | | (d) Contributions of covered employees to this fund for | 2 | | Federal
Social Security purposes shall be paid in such
amounts | 3 | | and at such time as required by applicable State and federal | 4 | | laws and regulations.
| 5 | | (e) (Blank).
| 6 | | (f) The board shall maintain such records and submit such | 7 | | reports as may
be required by applicable State and Federal laws | 8 | | or regulations.
| 9 | | (Source: P.A. 96-1084, eff. 7-16-10.)
| 10 | | (40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
| 11 | | Sec. 7-171. Finance; taxes.
| 12 | | (a) Each municipality other than a school district shall
| 13 | | appropriate an amount sufficient to provide for the current
| 14 | | municipality contributions required by Section 7-172 of
this | 15 | | Article, for the fiscal year for which the appropriation is | 16 | | made
and all amounts due for municipal contributions for | 17 | | previous years.
Those municipalities which have been assessed | 18 | | an annual amount to
amortize its unfunded obligation, as | 19 | | provided in subparagraph 4 of
paragraph (a) of Section 7-172 of | 20 | | this Article, shall include in the
appropriation an amount | 21 | | sufficient to pay the amount assessed. The
appropriation shall | 22 | | be based upon an estimate of assets available for
municipality | 23 | | contributions and liabilities therefor for the fiscal year
for | 24 | | which appropriations are to be made, including funds available | 25 | | from
levies for this purpose in prior years.
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| 1 | | (b) For the purpose of providing monies for municipality
| 2 | | contributions, beginning for the year in which a municipality | 3 | | is
included in this fund:
| 4 | | (1) A municipality other than a school district may | 5 | | levy a tax
which shall not exceed the amount appropriated | 6 | | for municipality contributions.
| 7 | | (2) A school district may levy a tax in an amount | 8 | | reasonably calculated
at the time of the levy to provide | 9 | | for the municipality contributions required
under Section | 10 | | 7-172 of this Article for the fiscal years for which | 11 | | revenues
from the levy will be received and all amounts due | 12 | | for municipal contributions
for previous years. Any levy | 13 | | adopted before the effective date of this
amendatory Act of | 14 | | 1995 by a school district shall be considered valid and
| 15 | | authorized to the extent that the amount was reasonably | 16 | | calculated at the time
of the levy to provide for the | 17 | | municipality contributions required under
Section 7-172 | 18 | | for the fiscal years for which revenues from the levy will | 19 | | be
received and all amounts due for municipal contributions | 20 | | for previous years.
In no event shall a budget adopted by a | 21 | | school district limit a levy of that
school district | 22 | | adopted under this Section.
| 23 | | (c) Any county which is served by a regional office of | 24 | | education that
serves 2 or more
counties may include in its
| 25 | | appropriation an amount sufficient to provide its | 26 | | proportionate share of the
municipality contributions for that |
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| 1 | | regional office of education. The tax levy authorized by this | 2 | | Section may include an amount
necessary to provide monies for | 3 | | this contribution.
| 4 | | (d) Any county that is a part of a multiple-county health | 5 | | department
or consolidated health department which is formed | 6 | | under "An Act in
relation to the establishment and maintenance | 7 | | of county and
multiple-county public health departments", | 8 | | approved July 9, 1943, as
amended, and which is a participating | 9 | | instrumentality may include in the
county's appropriation an | 10 | | amount sufficient to provide its proportionate
share of | 11 | | municipality contributions of the department. The tax levy
| 12 | | authorized by this Section may include the amount necessary to | 13 | | provide
monies for this contribution.
| 14 | | (d-5) A school district participating in a special | 15 | | education joint
agreement created under Section 10-22.31 of the | 16 | | School Code that is a
participating instrumentality may include | 17 | | in the school district's
tax levy under this Section an amount | 18 | | sufficient to provide its
proportionate share of the | 19 | | municipality contributions for current and prior
service by | 20 | | employees of the participating instrumentality created under | 21 | | the
joint agreement.
| 22 | | (e) Such tax shall be levied and collected in like manner, | 23 | | with the
general taxes of the municipality and shall be in | 24 | | addition to all other
taxes which the municipality is now or | 25 | | may hereafter be authorized to
levy upon all taxable property | 26 | | therein, and shall be exclusive of and in
addition to the |
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| 1 | | amount of tax levied for general purposes under Section
8-3-1 | 2 | | of the "Illinois Municipal Code", approved May 29, 1961, as
| 3 | | amended, or under any other law or laws which may limit the | 4 | | amount of
tax which the municipality may levy for general | 5 | | purposes. The tax may
be levied by the governing body of the | 6 | | municipality without being
authorized as being additional to | 7 | | all other taxes by a vote of the
people of the municipality.
| 8 | | (f) The county clerk of the county in which any such | 9 | | municipality is
located, in reducing tax levies shall not | 10 | | consider any such tax as a
part of the general tax levy for | 11 | | municipality purposes, and shall not
include the same in the | 12 | | limitation of any other tax rate which may be
extended.
| 13 | | (g) The amount of the tax to be levied in any year shall, | 14 | | within the
limits herein prescribed, be determined by the | 15 | | governing body of the
respective municipality.
| 16 | | (h) The revenue derived from any such tax levy shall be | 17 | | used only
for the contributions required under Section 7-172 | 18 | | purposes specified in this Article and, as collected, shall be
| 19 | | paid to the treasurer of the municipality levying the tax. | 20 | | Monies
received by a county treasurer for use in making | 21 | | contributions to a regional
office of education for its
| 22 | | municipality contributions shall be held by him for that | 23 | | purpose and paid to
the regional office of education in the | 24 | | same manner as other
monies appropriated for the expense of the | 25 | | regional office.
| 26 | | (Source: P.A. 96-1084, eff. 7-16-10.)
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| 1 | | (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
| 2 | | Sec. 7-172. Contributions by participating municipalities | 3 | | and
participating instrumentalities.
| 4 | | (a) Each participating municipality and each participating
| 5 | | instrumentality shall make payment to the fund as follows:
| 6 | | 1. municipality contributions in an amount determined | 7 | | by applying
the municipality contribution rate to each | 8 | | payment of earnings paid to
each of its participating | 9 | | employees;
| 10 | | 2. an amount equal to the employee contributions | 11 | | provided by paragraph paragraphs
(a) and (b) of Section | 12 | | 7-173, whether or not the employee contributions are
| 13 | | withheld as permitted by that Section;
| 14 | | 3. all accounts receivable, together with interest | 15 | | charged thereon,
as provided in Section 7-209;
| 16 | | 4. if it has no participating employees with current | 17 | | earnings, an
amount payable which, over a closed period of | 18 | | 20 years for participating municipalities and 10 years for | 19 | | participating instrumentalities, will amortize, at the | 20 | | effective rate for
that year, any unfunded obligation. The | 21 | | unfunded obligation shall be computed as provided in | 22 | | paragraph 2 of subsection (b); | 23 | | 5. if it has fewer than 7 participating employees or a | 24 | | negative balance in its municipality reserve, the greater | 25 | | of (A) an amount payable that, over a period of 20 years, |
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| 1 | | will amortize at the effective rate for that year any | 2 | | unfunded obligation, computed as provided in paragraph 2 of | 3 | | subsection (b) or (B) the amount required by paragraph 1 of | 4 | | this subsection (a).
| 5 | | (b) A separate municipality contribution rate shall be | 6 | | determined
for each calendar year for all participating | 7 | | municipalities together
with all instrumentalities thereof. | 8 | | The municipality contribution rate
shall be determined for | 9 | | participating instrumentalities as if they were
participating | 10 | | municipalities. The municipality contribution rate shall
be | 11 | | the sum of the following percentages:
| 12 | | 1. The percentage of earnings of all the participating | 13 | | employees of all
participating municipalities and | 14 | | participating instrumentalities which, if paid
over the | 15 | | entire period of their service, will be sufficient when | 16 | | combined with
all employee contributions available for the | 17 | | payment of benefits, to provide
all annuities for | 18 | | participating employees, and the $3,000 death benefit
| 19 | | payable under Sections 7-158 and 7-164, such percentage to | 20 | | be known as the
normal cost rate.
| 21 | | 2. The percentage of earnings of the participating | 22 | | employees of each
participating municipality and | 23 | | participating instrumentalities necessary
to adjust for | 24 | | the difference between the present value of all benefits,
| 25 | | excluding temporary and total and permanent disability and | 26 | | death benefits, to
be provided for its participating |
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| 1 | | employees and the sum of its accumulated
municipality | 2 | | contributions and the accumulated employee contributions | 3 | | and the
present value of expected future employee and | 4 | | municipality contributions
pursuant to subparagraph 1 of | 5 | | this paragraph (b). This adjustment shall be
spread over | 6 | | the remainder of the period that is allowable under | 7 | | generally
accepted accounting principles.
| 8 | | 3. The percentage of earnings of the participating | 9 | | employees of all
municipalities and participating | 10 | | instrumentalities necessary to provide
the present value | 11 | | of all temporary and total and permanent disability
| 12 | | benefits granted during the most recent year for which | 13 | | information is
available.
| 14 | | 4. The percentage of earnings of the participating | 15 | | employees of all
participating municipalities and | 16 | | participating instrumentalities
necessary to provide the | 17 | | present value of the net single sum death
benefits expected | 18 | | to become payable from the reserve established under
| 19 | | Section 7-206 during the year for which this rate is fixed.
| 20 | | 5. The percentage of earnings necessary to meet any | 21 | | deficiency
arising in the Terminated Municipality Reserve.
| 22 | | (c) A separate municipality contribution rate shall be | 23 | | computed for
each participating municipality or participating | 24 | | instrumentality
for its sheriff's law enforcement employees.
| 25 | | A separate municipality contribution rate shall be | 26 | | computed for the
sheriff's law enforcement employees of each |
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| 1 | | forest preserve district that
elects to have such employees. | 2 | | For the period from January 1, 1986 to
December 31, 1986, such | 3 | | rate shall be the forest preserve district's regular
rate plus | 4 | | 2%.
| 5 | | In the event that the Board determines that there is an | 6 | | actuarial
deficiency in the account of any municipality with | 7 | | respect to a person who
has elected to participate in the Fund | 8 | | under Section 3-109.1 of this Code,
the Board may adjust the | 9 | | municipality's contribution rate so as to make up
that | 10 | | deficiency over such reasonable period of time as the Board may | 11 | | determine.
| 12 | | (d) The Board may establish a separate municipality | 13 | | contribution
rate for all employees who are program | 14 | | participants employed under the
federal Comprehensive | 15 | | Employment Training Act by all of the
participating | 16 | | municipalities and instrumentalities. The Board may also
| 17 | | provide that, in lieu of a separate municipality rate for these
| 18 | | employees, a portion of the municipality contributions for such | 19 | | program
participants shall be refunded or an extra charge | 20 | | assessed so that the
amount of municipality contributions | 21 | | retained or received by the fund
for all CETA program | 22 | | participants shall be an amount equal to that which
would be | 23 | | provided by the separate municipality contribution rate for all
| 24 | | such program participants. Refunds shall be made to prime | 25 | | sponsors of
programs upon submission of a claim therefor and | 26 | | extra charges shall be
assessed to participating |
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| 1 | | municipalities and instrumentalities. In
establishing the | 2 | | municipality contribution rate as provided in paragraph
(b) of | 3 | | this Section, the use of a separate municipality contribution
| 4 | | rate for program participants or the refund of a portion of the
| 5 | | municipality contributions, as the case may be, may be | 6 | | considered.
| 7 | | (e) Computations of municipality contribution rates for | 8 | | the
following calendar year shall be made prior to the | 9 | | beginning of each
year, from the information available at the | 10 | | time the computations are
made, and on the assumption that the | 11 | | employees in each participating
municipality or participating | 12 | | instrumentality at such time will continue
in service until the | 13 | | end of such calendar year at their respective rates
of earnings | 14 | | at such time.
| 15 | | (f) Any municipality which is the recipient of State | 16 | | allocations
representing that municipality's contributions for | 17 | | retirement annuity
purposes on behalf of its employees as | 18 | | provided in Section 12-21.16 of
the Illinois Public Aid Code | 19 | | shall pay the allocations so
received to the Board for such | 20 | | purpose. Estimates of State allocations to
be received during | 21 | | any taxable year shall be considered in the
determination of | 22 | | the municipality's tax rate for that year under Section
7-171. | 23 | | If a special tax is levied under Section 7-171, none of the
| 24 | | proceeds may be used to reimburse the municipality for the | 25 | | amount of State
allocations received and paid to the Board. Any | 26 | | multiple-county or
consolidated health department which |
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| 1 | | receives contributions from a county
under Section 11.2 of "An | 2 | | Act in relation to establishment and maintenance
of county and | 3 | | multiple-county health departments", approved July 9, 1943,
as | 4 | | amended, or distributions under Section 3 of the Department of | 5 | | Public
Health Act, shall use these only for municipality | 6 | | contributions by the
health department.
| 7 | | (g) Municipality contributions for the several purposes | 8 | | specified
shall, for township treasurers and employees in the | 9 | | offices of the
township treasurers who meet the qualifying | 10 | | conditions for coverage
hereunder, be allocated among the | 11 | | several school districts and parts of
school districts serviced | 12 | | by such treasurers and employees in the
proportion which the | 13 | | amount of school funds of each district or part of
a district | 14 | | handled by the treasurer bears to the total amount of all
| 15 | | school funds handled by the treasurer.
| 16 | | From the funds subject to allocation among districts and | 17 | | parts of
districts pursuant to the School Code, the trustees | 18 | | shall withhold the
proportionate share of the liability for | 19 | | municipality contributions imposed
upon such districts by this | 20 | | Section, in respect to such township treasurers
and employees | 21 | | and remit the same to the Board.
| 22 | | The municipality contribution rate for an educational | 23 | | service center shall
initially be the same rate for each year | 24 | | as the regional office of
education or school district
which | 25 | | serves as its administrative agent. When actuarial data become
| 26 | | available, a separate rate shall be established as provided in |
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| 1 | | subparagraph
(i) of this Section.
| 2 | | The municipality contribution rate for a public agency, | 3 | | other than a
vocational education cooperative, formed under the | 4 | | Intergovernmental
Cooperation Act shall initially be the | 5 | | average rate for the municipalities
which are parties to the | 6 | | intergovernmental agreement. When actuarial data
become | 7 | | available, a separate rate shall be established as provided in
| 8 | | subparagraph (i) of this Section.
| 9 | | (h) Each participating municipality and participating
| 10 | | instrumentality shall make the contributions in the amounts | 11 | | provided in
this Section in the manner prescribed from time to | 12 | | time by the Board and
all such contributions shall be | 13 | | obligations of the respective
participating municipalities and | 14 | | participating instrumentalities to this
fund. The failure to | 15 | | deduct any employee contributions shall not
relieve the | 16 | | participating municipality or participating instrumentality
of | 17 | | its obligation to this fund. Delinquent payments of | 18 | | contributions
due under this Section may, with interest, be | 19 | | recovered by civil action
against the participating | 20 | | municipalities or participating
instrumentalities. | 21 | | Municipality contributions, other than the amount
necessary | 22 | | for employee contributions and Social Security contributions , | 23 | | for
periods of service by employees from whose earnings no | 24 | | deductions were made
for employee contributions to the fund, | 25 | | may be charged to the municipality
reserve for the municipality | 26 | | or participating instrumentality.
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| 1 | | (i) Contributions by participating instrumentalities shall | 2 | | be
determined as provided herein except that the percentage | 3 | | derived under
subparagraph 2 of paragraph (b) of this Section, | 4 | | and the amount payable
under subparagraph 4 of paragraph (a) of | 5 | | this Section, shall be based on
an amortization period of 10 | 6 | | years.
| 7 | | (j) Notwithstanding the other provisions of this Section, | 8 | | the additional unfunded liability accruing as a result of this | 9 | | amendatory Act of the 94th General Assembly
shall be amortized | 10 | | over a period of 30 years beginning on January 1 of the
second | 11 | | calendar year following the calendar year in which this | 12 | | amendatory Act takes effect, except that the employer may | 13 | | provide for a longer amortization period by adopting a | 14 | | resolution or ordinance specifying a 35-year or 40-year period | 15 | | and submitting a certified copy of the ordinance or resolution | 16 | | to the fund no later than June 1 of the calendar year following | 17 | | the calendar year in which this amendatory Act takes effect.
| 18 | | (k) If the amount of a participating employee's reported | 19 | | earnings for any of the 12-month periods used to determine the | 20 | | final rate of earnings exceeds the employee's 12 month reported | 21 | | earnings with the same employer for the previous year by the | 22 | | greater of 6% or 1.5 times the annual increase in the Consumer | 23 | | Price Index-U, as established by the United States Department | 24 | | of Labor for the preceding September, the participating | 25 | | municipality or participating instrumentality that paid those | 26 | | earnings shall pay to the Fund, in addition to any other |
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| 1 | | contributions required under this Article, the present value of | 2 | | the increase in the pension resulting from the portion of the | 3 | | increase in salary that is in excess of the greater of 6% or | 4 | | 1.5 times the annual increase in the Consumer Price Index-U, as | 5 | | determined by the Fund. This present value shall be computed on | 6 | | the basis of the actuarial assumptions and tables used in the | 7 | | most recent actuarial valuation of the Fund that is available | 8 | | at the time of the computation. | 9 | | Whenever it determines that a payment is or may be required | 10 | | under this subsection (k), the fund shall calculate the amount | 11 | | of the payment and bill the participating municipality or | 12 | | participating instrumentality for that amount. The bill shall | 13 | | specify the calculations used to determine the amount due. If | 14 | | the participating municipality or participating | 15 | | instrumentality disputes the amount of the bill, it may, within | 16 | | 30 days after receipt of the bill, apply to the fund in writing | 17 | | for a recalculation. The application must specify in detail the | 18 | | grounds of the dispute. Upon receiving a timely application for | 19 | | recalculation, the fund shall review the application and, if | 20 | | appropriate, recalculate the amount due.
The participating | 21 | | municipality and participating instrumentality contributions | 22 | | required under this subsection (k) may be paid in the form of a | 23 | | lump sum within 90 days after receipt of the bill. If the | 24 | | participating municipality and participating instrumentality | 25 | | contributions are not paid within 90 days after receipt of the | 26 | | bill, then interest will be charged at a rate equal to the |
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| 1 | | fund's annual actuarially assumed rate of return on investment | 2 | | compounded annually from the 91st day after receipt of the | 3 | | bill. Payments must be concluded within 3 years after receipt | 4 | | of the bill by the participating municipality or participating | 5 | | instrumentality. | 6 | | When assessing payment for any amount due under this | 7 | | subsection (k), the fund shall exclude earnings increases | 8 | | resulting from overload or overtime earnings. | 9 | | When assessing payment for any amount due under this | 10 | | subsection (k), the fund shall also exclude earnings increases | 11 | | attributable to standard employment promotions resulting in | 12 | | increased responsibility and workload. | 13 | | This subsection (k) does not apply to earnings increases | 14 | | paid to individuals under contracts or collective bargaining | 15 | | agreements entered into, amended, or renewed before January 1, | 16 | | 2012 ( the effective date of Public Act 97-609) this amendatory | 17 | | Act of the 97th General Assembly , earnings increases paid to | 18 | | members who are 10 years or more from retirement eligibility, | 19 | | or earnings increases resulting from an increase in the number | 20 | | of hours required to be worked. | 21 | | When assessing payment for any amount due under this | 22 | | subsection (k), the fund shall also exclude earnings | 23 | | attributable to personnel policies adopted before January 1, | 24 | | 2012 ( the effective date of Public Act 97-609) this amendatory | 25 | | Act of the 97th General Assembly as long as those policies are | 26 | | not applicable to employees who begin service on or after |
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| 1 | | January 1, 2012 ( the effective date of Public Act 97-609) this | 2 | | amendatory Act of the 97th General Assembly . | 3 | | (Source: P.A. 96-1084, eff. 7-16-10; 96-1140, eff. 7-21-10; | 4 | | 97-333, eff. 8-12-11; 97-609, eff. 1-1-12.)
| 5 | | (40 ILCS 5/7-172.2) (from Ch. 108 1/2, par. 7-172.2)
| 6 | | Sec. 7-172.2.
In addition to the payments otherwise | 7 | | required by this
Article, each participating municipality and | 8 | | each participating
instrumentality shall make payment of | 9 | | Social Security contributions and
medicare taxes in the amounts | 10 | | and in the manner provided by law. Each employee shall make | 11 | | contributions for Federal Social Security and medicare taxes, | 12 | | for periods during which he or she is a covered employee, as | 13 | | required by the Social Security Enabling Act and State and | 14 | | federal law.
| 15 | | (Source: P.A. 84-1472.)
| 16 | | (40 ILCS 5/7-173) (from Ch. 108 1/2, par. 7-173)
| 17 | | Sec. 7-173. Contributions by employees.
| 18 | | (a) Each participating employee shall make contributions | 19 | | to the fund as
follows:
| 20 | | 1. For retirement annuity purposes, normal | 21 | | contributions of 3 3/4%
of earnings.
| 22 | | 2. Additional contributions of such percentages of | 23 | | each payment of
earnings, as shall be elected by the | 24 | | employee for retirement annuity
purposes, but not in excess |
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| 1 | | of 10%. The selected rate shall be
applicable to all | 2 | | earnings paid following receipt by the Board of written | 3 | | notice of election to
make such contributions. Additional | 4 | | contributions at the selected rate
shall be made | 5 | | concurrently with normal contributions.
| 6 | | 3. Survivor contributions, by each participating | 7 | | employee, of 3/4%
of each payment of earnings.
| 8 | | (b) (Blank) Each employee shall make contributions for | 9 | | Federal
Social Security taxes, for periods during which he is a | 10 | | covered
employee, as required by the Social Security Enabling | 11 | | Act and State and federal law. For
participating employees, | 12 | | such contributions shall be in addition to
those required under | 13 | | paragraph (a) of this Section .
| 14 | | (c) Contributions shall be deducted from each | 15 | | corresponding payment
of earnings paid to each employee and | 16 | | shall be remitted to the board by
the participating | 17 | | municipality or participating instrumentality making
such | 18 | | payment. The remittance, together with a report of the earnings
| 19 | | and contributions shall be made as directed by the board. For | 20 | | township
treasurers and employees of township treasurers | 21 | | qualifying as employees
hereunder, the contributions herein | 22 | | required as deductions from salary
shall be withheld by the | 23 | | school township trustees from funds available
for the payment | 24 | | of the compensation of such treasurers and employees as
| 25 | | provided in the School Code and remitted to the board.
| 26 | | (d) An employee who has made additional contributions under
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| 1 | | paragraph (a)2 of this Section may upon retirement or at any | 2 | | time prior
thereto, elect to withdraw the total of such | 3 | | additional contributions
including interest credited thereon | 4 | | to the end of the preceding calendar
year.
| 5 | | (e) Failure to make the deductions for employee | 6 | | contributions
provided in paragraph (c) of this Section shall | 7 | | not relieve the employee
from liability for such contributions. | 8 | | The amount of such liability may
be deducted, with interest | 9 | | charged under Section 7-209, from any
annuities or benefits | 10 | | payable hereunder to the employee or any other
person receiving | 11 | | an annuity or benefit by reason of such employee's
| 12 | | participation.
| 13 | | (f) A participating employee who has at least 40 years of | 14 | | creditable
service in the Fund may elect to cease making the | 15 | | contributions required
under this Section. The status of the | 16 | | employee under this Article shall be
unaffected by this | 17 | | election, except that the employee shall not receive any
| 18 | | additional creditable service for the periods of employment | 19 | | following the
election. An election under this subsection | 20 | | relieves the employer from
making additional employer | 21 | | contributions in relation to that employee.
| 22 | | (Source: P.A. 96-1084, eff. 7-16-10; 96-1258, eff. 7-23-10; | 23 | | 97-333, eff. 8-12-11.)
| 24 | | (40 ILCS 5/7-220) (from Ch. 108 1/2, par. 7-220)
| 25 | | Sec. 7-220. Administrative review. The provisions of the |
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| 1 | | Administrative Review Law, and all amendments and
| 2 | | modifications thereof and the rules adopted
pursuant thereto | 3 | | shall apply to and govern all proceedings for the judicial
| 4 | | review of final administrative decisions of the retirement | 5 | | board provided
for under this Article. The term "administrative | 6 | | decision" is as defined in
Section 3-101 of the Code of Civil | 7 | | Procedure. The venue for actions brought under the | 8 | | Administrative Review Law shall be any county in which the | 9 | | Board maintains an office or the county in which the member's | 10 | | plaintiff's employing participating municipality or | 11 | | participating instrumentality has its main office.
| 12 | | (Source: P.A. 96-1140, eff. 7-21-10.)
| 13 | | (40 ILCS 5/15-113) (from Ch. 108 1/2, par. 15-113)
| 14 | | Sec. 15-113. Service. "Service": The periods defined in | 15 | | Sections
15-113.1 through 15-113.9 and Section 15-113.11 .
| 16 | | (Source: P.A. 84-1472.)
| 17 | | (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
| 18 | | Sec. 15-135. Retirement annuities - Conditions.
| 19 | | (a) A participant who retires in one of the following | 20 | | specified years with
the specified amount of service is | 21 | | entitled to a retirement annuity at any age
under the | 22 | | retirement program applicable to the participant:
| 23 | | 35 years if retirement is in 1997 or before;
| 24 | | 34 years if retirement is in 1998;
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| 1 | | 33 years if retirement is in 1999;
| 2 | | 32 years if retirement is in 2000;
| 3 | | 31 years if retirement is in 2001;
| 4 | | 30 years if retirement is in 2002 or later.
| 5 | | A participant with 8 or more years of service after | 6 | | September 1, 1941, is
entitled to a retirement annuity on or | 7 | | after attainment of age 55.
| 8 | | A participant with at least 5 but less than 8 years
of | 9 | | service after September 1, 1941, is entitled to a retirement | 10 | | annuity on
or after attainment of age 62.
| 11 | | A participant who has at least 25 years of service in this | 12 | | system as a
police officer or firefighter is entitled to a | 13 | | retirement
annuity on or after the attainment of age 50, if | 14 | | Rule 4 of Section
15-136 is applicable to the participant.
| 15 | | (b) The annuity payment period shall begin on the date | 16 | | specified by the
participant or the recipient of a disability | 17 | | retirement annuity submitting a written application, which | 18 | | date shall not be prior
to termination of employment or more | 19 | | than one year before the application is
received by the board; | 20 | | however, if the participant is not an employee of an
employer | 21 | | participating in this System or in a participating system as | 22 | | defined
in Article 20 of this Code on April 1 of the calendar | 23 | | year next following
the calendar year in which the participant | 24 | | attains age 70 1/2, the annuity
payment period shall begin on | 25 | | that date regardless of whether an application
has been filed.
| 26 | | (c) An annuity is not payable if the amount provided under |
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| 1 | | Section
15-136 is less than $10 per month.
| 2 | | (Source: P.A. 92-749, eff. 8-2-02 .)
| 3 | | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
| 4 | | Sec. 15-136. Retirement annuities - Amount. The provisions | 5 | | of this
Section 15-136 apply only to those participants who are | 6 | | participating in the
traditional benefit package or the | 7 | | portable benefit package and do not
apply to participants who | 8 | | are participating in the self-managed plan.
| 9 | | (a) The amount of a participant's retirement annuity, | 10 | | expressed in the form
of a single-life annuity, shall be | 11 | | determined by whichever of the following
rules is applicable | 12 | | and provides the largest annuity:
| 13 | | Rule 1: The retirement annuity shall be 1.67% of final rate | 14 | | of earnings for
each of the first 10 years of service, 1.90% | 15 | | for each of the next 10 years of
service, 2.10% for each year | 16 | | of service in excess of 20 but not exceeding 30,
and 2.30% for | 17 | | each year in excess of 30; or for persons who retire on or
| 18 | | after January 1, 1998, 2.2% of the final rate of earnings for | 19 | | each year of
service.
| 20 | | Rule 2: The retirement annuity shall be the sum of the | 21 | | following,
determined from amounts credited to the participant | 22 | | in accordance with the
actuarial tables and the effective | 23 | | prescribed rate of interest in effect at the
time the | 24 | | retirement annuity begins:
| 25 | | (i) the normal annuity which can be provided on an |
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| 1 | | actuarially
equivalent basis, by the accumulated normal | 2 | | contributions as of
the date the annuity begins;
| 3 | | (ii) an annuity from employer contributions of an | 4 | | amount equal to that
which can be provided on an | 5 | | actuarially equivalent basis from the accumulated
normal | 6 | | contributions made by the participant under Section | 7 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other | 8 | | accumulated normal contributions made by
the participant; | 9 | | and
| 10 | | (iii) the annuity that can be provided on an | 11 | | actuarially equivalent basis
from the entire contribution | 12 | | made by the participant under Section 15-113.3.
| 13 | | With respect to a police officer or firefighter who retires | 14 | | on or after
August 14, 1998, the accumulated normal | 15 | | contributions taken into account under
clauses (i) and (ii) of | 16 | | this Rule 2 shall include the additional normal
contributions | 17 | | made by the police officer or firefighter under Section
| 18 | | 15-157(a).
| 19 | | The amount of a retirement annuity calculated under this | 20 | | Rule 2 shall
be computed solely on the basis of the | 21 | | participant's accumulated normal
contributions, as specified | 22 | | in this Rule and defined in Section 15-116.
Neither an employee | 23 | | or employer contribution for early retirement under
Section | 24 | | 15-136.2 nor any other employer contribution shall be used in | 25 | | the
calculation of the amount of a retirement annuity under | 26 | | this Rule 2.
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| 1 | | This amendatory Act of the 91st General Assembly is a | 2 | | clarification of
existing law and applies to every participant | 3 | | and annuitant without regard to
whether status as an employee | 4 | | terminates before the effective date of this
amendatory Act.
| 5 | | This Rule 2 does not apply to a person who first becomes an | 6 | | employee under this Article on or after July 1, 2005.
| 7 | | Rule 3: The retirement annuity of a participant who is | 8 | | employed
at least one-half time during the period on which his | 9 | | or her final rate of
earnings is based, shall be equal to the | 10 | | participant's years of service
not to exceed 30, multiplied by | 11 | | (1) $96 if the participant's final rate
of earnings is less | 12 | | than $3,500, (2) $108 if the final rate of earnings is
at least | 13 | | $3,500 but less than $4,500, (3) $120 if the final rate of | 14 | | earnings
is at least $4,500 but less than $5,500, (4) $132 if | 15 | | the final rate
of earnings is at least $5,500 but less than | 16 | | $6,500, (5)
$144 if the final rate of earnings is at least | 17 | | $6,500 but less than
$7,500, (6) $156 if the final rate of | 18 | | earnings is at least $7,500 but less
than $8,500, (7) $168 if | 19 | | the final rate of earnings is at least $8,500 but
less than | 20 | | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
| 21 | | more, except that the annuity for those persons having made an | 22 | | election under
Section 15-154(a-1) shall be calculated and | 23 | | payable under the portable
retirement benefit program pursuant | 24 | | to the provisions of Section 15-136.4.
| 25 | | Rule 4: A participant who is at least age 50 and has 25 or | 26 | | more years of
service as a police officer or firefighter, and a |
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| 1 | | participant who is age 55 or
over and has at least 20 but less | 2 | | than 25 years of service as a police officer
or firefighter, | 3 | | shall be entitled to a retirement annuity of 2 1/4% of the
| 4 | | final rate of earnings for each of the first 10 years of | 5 | | service as a police
officer or firefighter, 2 1/2% for each of | 6 | | the next 10 years of service as a
police officer or | 7 | | firefighter, and 2 3/4% for each year of service as a police
| 8 | | officer or firefighter in excess of 20. The retirement annuity | 9 | | for all other
service shall be computed under Rule 1.
| 10 | | For purposes of this Rule 4, a participant's service as a | 11 | | firefighter
shall also include the following:
| 12 | | (i) service that is performed while the person is an | 13 | | employee under
subsection (h) of Section 15-107; and
| 14 | | (ii) in the case of an individual who was a | 15 | | participating employee
employed in the fire department of | 16 | | the University of Illinois's
Champaign-Urbana campus | 17 | | immediately prior to the elimination of that fire
| 18 | | department and who immediately after the elimination of | 19 | | that fire department
transferred to another job with the | 20 | | University of Illinois, service performed
as an employee of | 21 | | the University of Illinois in a position other than police
| 22 | | officer or firefighter, from the date of that transfer | 23 | | until the employee's
next termination of service with the | 24 | | University of Illinois.
| 25 | | Rule 5: The retirement annuity of a participant who elected | 26 | | early
retirement under the provisions of Section 15-136.2 and |
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| 1 | | who, on or before
February 16, 1995, brought administrative | 2 | | proceedings pursuant to the
administrative rules adopted by the | 3 | | System to challenge the calculation of his
or her retirement | 4 | | annuity shall be the sum of the following, determined from
| 5 | | amounts credited to the participant in accordance with the | 6 | | actuarial tables and
the prescribed rate of interest in effect | 7 | | at the time the retirement annuity
begins:
| 8 | | (i) the normal annuity which can be provided on an | 9 | | actuarially equivalent
basis, by the accumulated normal | 10 | | contributions as of the date the annuity
begins; and
| 11 | | (ii) an annuity from employer contributions of an | 12 | | amount equal to that
which can be provided on an | 13 | | actuarially equivalent basis from the accumulated
normal | 14 | | contributions made by the participant under Section | 15 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other | 16 | | accumulated normal contributions made by the
participant; | 17 | | and
| 18 | | (iii) an annuity which can be provided on an | 19 | | actuarially equivalent basis
from the employee | 20 | | contribution for early retirement under Section 15-136.2, | 21 | | and
an annuity from employer contributions of an amount | 22 | | equal to that which can be
provided on an actuarially | 23 | | equivalent basis from the employee contribution for
early | 24 | | retirement under Section 15-136.2.
| 25 | | In no event shall a retirement annuity under this Rule 5 be | 26 | | lower than the
amount obtained by adding (1) the monthly amount |
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| 1 | | obtained by dividing the
combined employee and employer | 2 | | contributions made under Section 15-136.2 by the
System's | 3 | | annuity factor for the age of the participant at the beginning | 4 | | of the
annuity payment period and (2) the amount equal to the | 5 | | participant's annuity if
calculated under Rule 1, reduced under | 6 | | Section 15-136(b) as if no
contributions had been made under | 7 | | Section 15-136.2.
| 8 | | With respect to a participant who is qualified for a | 9 | | retirement annuity under
this Rule 5 whose retirement annuity | 10 | | began before the effective date of this
amendatory Act of the | 11 | | 91st General Assembly, and for whom an employee
contribution | 12 | | was made under Section 15-136.2, the System shall recalculate | 13 | | the
retirement annuity under this Rule 5 and shall pay any | 14 | | additional amounts due
in the manner provided in Section | 15 | | 15-186.1 for benefits mistakenly set too low.
| 16 | | The amount of a retirement annuity calculated under this | 17 | | Rule 5 shall be
computed solely on the basis of those | 18 | | contributions specifically set forth in
this Rule 5. Except as | 19 | | provided in clause (iii) of this Rule 5, neither an
employee | 20 | | nor employer contribution for early retirement under Section | 21 | | 15-136.2,
nor any other employer contribution, shall be used in | 22 | | the calculation of the
amount of a retirement annuity under | 23 | | this Rule 5.
| 24 | | The General Assembly has adopted the changes set forth in | 25 | | Section 25 of this
amendatory Act of the 91st General Assembly | 26 | | in recognition that the decision of
the Appellate Court for the |
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| 1 | | Fourth District in Mattis v. State Universities
Retirement | 2 | | System et al. might be deemed to give some right to the | 3 | | plaintiff in
that case. The changes made by Section 25 of this | 4 | | amendatory Act of the 91st
General Assembly are a legislative | 5 | | implementation of the decision of the
Appellate Court for the | 6 | | Fourth District in Mattis v. State Universities
Retirement | 7 | | System et al. with respect to that plaintiff.
| 8 | | The changes made by Section 25 of this amendatory Act of | 9 | | the 91st General
Assembly apply without regard to whether the | 10 | | person is in service as an
employee on or after its effective | 11 | | date.
| 12 | | (b) The retirement annuity provided under Rules 1 and 3 | 13 | | above shall be
reduced by 1/2 of 1% for each month the | 14 | | participant is under age 60 at the
time of retirement. However, | 15 | | this reduction shall not apply in the following
cases:
| 16 | | (1) For a disabled participant whose disability | 17 | | benefits have been
discontinued because he or she has | 18 | | exhausted eligibility for disability
benefits under clause | 19 | | (6) of Section 15-152;
| 20 | | (2) For a participant who has at least the number of | 21 | | years of service
required to retire at any age under | 22 | | subsection (a) of Section 15-135; or
| 23 | | (3) For that portion of a retirement annuity which has | 24 | | been provided on
account of service of the participant | 25 | | during periods when he or she performed
the duties of a | 26 | | police officer or firefighter, if these duties were |
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| 1 | | performed
for at least 5 years immediately preceding the | 2 | | date the retirement annuity
is to begin.
| 3 | | (c) The maximum retirement annuity provided under Rules 1, | 4 | | 2, 4,
and 5
shall be the lesser of (1) the annual limit of | 5 | | benefits as specified in
Section 415 of the Internal Revenue | 6 | | Code of 1986, as such Section may be
amended from time to time | 7 | | and as such benefit limits shall be adjusted by
the | 8 | | Commissioner of Internal Revenue, and (2) 80% of final rate of
| 9 | | earnings.
| 10 | | (d) An annuitant whose status as an employee terminates | 11 | | after August 14,
1969 shall receive automatic increases in his | 12 | | or her retirement annuity as
follows:
| 13 | | Effective January 1 immediately following the date the | 14 | | retirement annuity
begins, the annuitant shall receive an | 15 | | increase in his or her monthly
retirement annuity of 0.125% of | 16 | | the monthly retirement annuity provided under
Rule 1, Rule 2, | 17 | | Rule 3, Rule 4, or Rule 5, contained in this
Section, | 18 | | multiplied by
the number of full months which elapsed from the | 19 | | date the retirement annuity
payments began to January 1, 1972, | 20 | | plus 0.1667% of such annuity, multiplied by
the number of full | 21 | | months which elapsed from January 1, 1972, or the date the
| 22 | | retirement annuity payments began, whichever is later, to | 23 | | January 1, 1978, plus
0.25% of such annuity multiplied by the | 24 | | number of full months which elapsed
from January 1, 1978, or | 25 | | the date the retirement annuity payments began,
whichever is | 26 | | later, to the effective date of the increase.
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| 1 | | The annuitant shall receive an increase in his or her | 2 | | monthly retirement
annuity on each January 1 thereafter during | 3 | | the annuitant's life of 3% of
the monthly annuity provided | 4 | | under Rule 1, Rule 2, Rule 3, Rule 4, or
Rule 5 contained
in | 5 | | this Section. The change made under this subsection by P.A. | 6 | | 81-970 is
effective January 1, 1980 and applies to each | 7 | | annuitant whose status as
an employee terminates before or | 8 | | after that date.
| 9 | | Beginning January 1, 1990, all automatic annual increases | 10 | | payable under
this Section shall be calculated as a percentage | 11 | | of the total annuity
payable at the time of the increase, | 12 | | including all increases previously
granted under this Article.
| 13 | | The change made in this subsection by P.A. 85-1008 is | 14 | | effective January
26, 1988, and is applicable without regard to | 15 | | whether status as an employee
terminated before that date.
| 16 | | (e) If, on January 1, 1987, or the date the retirement | 17 | | annuity payment
period begins, whichever is later, the sum of | 18 | | the retirement annuity
provided under Rule 1 or Rule 2 of this | 19 | | Section
and the automatic annual increases provided under the | 20 | | preceding subsection
or Section 15-136.1, amounts to less than | 21 | | the retirement
annuity which would be provided by Rule 3, the | 22 | | retirement
annuity shall be increased as of January 1, 1987, or | 23 | | the date the
retirement annuity payment period begins, | 24 | | whichever is later, to the amount
which would be provided by | 25 | | Rule 3 of this Section. Such increased
amount shall be | 26 | | considered as the retirement annuity in determining
benefits |
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| 1 | | provided under other Sections of this Article. This paragraph
| 2 | | applies without regard to whether status as an employee | 3 | | terminated before the
effective date of this amendatory Act of | 4 | | 1987, provided that the annuitant was
employed at least | 5 | | one-half time during the period on which the final rate of
| 6 | | earnings was based.
| 7 | | (f) A participant is entitled to such additional annuity as | 8 | | may be provided
on an actuarially equivalent basis, by any | 9 | | accumulated
additional contributions to his or her credit. | 10 | | However,
the additional contributions made by the participant | 11 | | toward the automatic
increases in annuity provided under this | 12 | | Section shall not be taken into
account in determining the | 13 | | amount of such additional annuity.
| 14 | | (g) If, (1) by law, a function of a governmental unit, as | 15 | | defined by Section
20-107 of this Code, is transferred in whole | 16 | | or in part to an employer, and (2)
a participant transfers | 17 | | employment from such governmental unit to such employer
within | 18 | | 6 months after the transfer of the function, and (3) the sum of | 19 | | (A) the
annuity payable to the participant under Rule 1, 2, or | 20 | | 3 of this Section (B)
all proportional annuities payable to the | 21 | | participant by all other retirement
systems covered by Article | 22 | | 20, and (C) the initial primary insurance amount to
which the | 23 | | participant is entitled under the Social Security Act, is less | 24 | | than
the retirement annuity which would have been payable if | 25 | | all of the
participant's pension credits validated under | 26 | | Section 20-109 had been validated
under this system, a |
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| 1 | | supplemental annuity equal to the difference in such
amounts | 2 | | shall be payable to the participant.
| 3 | | (h) On January 1, 1981, an annuitant who was receiving
a | 4 | | retirement annuity on or before January 1, 1971 shall have his | 5 | | or her
retirement annuity then being paid increased $1 per | 6 | | month for
each year of creditable service. On January 1, 1982, | 7 | | an annuitant whose
retirement annuity began on or before | 8 | | January 1, 1977, shall have his or her
retirement annuity then | 9 | | being paid increased $1 per month for each year of
creditable | 10 | | service.
| 11 | | (i) On January 1, 1987, any annuitant whose retirement | 12 | | annuity began on or
before January 1, 1977, shall have the | 13 | | monthly retirement annuity increased by
an amount equal to 8˘ | 14 | | per year of creditable service times the number of years
that | 15 | | have elapsed since the annuity began.
| 16 | | (Source: P.A. 93-347, eff. 7-24-03; 94-4, eff. 6-1-05.)
| 17 | | (40 ILCS 5/15-136.4)
| 18 | | Sec. 15-136.4. Retirement and Survivor Benefits Under | 19 | | Portable
Benefit Package. | 20 | | (a) This Section 15-136.4 describes the form of annuity and | 21 | | survivor
benefits available to a participant who has elected | 22 | | the portable benefit
package and has completed the one-year | 23 | | waiting period required under subsection
(e) of Section | 24 | | 15-134.5. For purposes of this Section, the term
"eligible | 25 | | spouse" means the husband or wife of a participant to whom the
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| 1 | | participant is married on the date the participant's annuity
| 2 | | payment period begins, provided however, that if the | 3 | | participant should die prior
to the commencement of retirement | 4 | | annuity benefits, then "eligible spouse"
means the husband or | 5 | | wife, if any, to whom
the participant was married throughout | 6 | | the one-year period preceding the date
of his or her death.
| 7 | | (b) This subsection (b) describes the normal form of | 8 | | annuity payable
to a participant subject to this Section | 9 | | 15-136.4. If the participant is
unmarried on the date his or | 10 | | her annuity payment period begins, then the annuity
payments | 11 | | shall be made in the form of a single-life annuity as described | 12 | | in
Section 15-118. If the participant is married on the date | 13 | | his or her annuity
payments commence, then the annuity payments | 14 | | shall be paid in the form of a
qualified joint and survivor | 15 | | annuity that is the actuarial equivalent of the
single-life | 16 | | annuity. Under the "qualified joint and survivor annuity", a
| 17 | | reduced amount shall be paid to the participant for his or her | 18 | | lifetime and his
or her eligible spouse, if surviving at the | 19 | | participant's death, shall be
entitled to receive thereafter a | 20 | | lifetime survivorship annuity in a monthly
amount equal to 50% | 21 | | of the reduced monthly amount that was payable to the
| 22 | | participant. The last payment of a qualified joint and survivor | 23 | | annuity shall
be made as of the first day of the month in which | 24 | | the death of the survivor
occurs.
| 25 | | (c) Instead of the normal form of annuity that would be | 26 | | paid under
subsection (b), a participant may elect in writing |
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| 1 | | within the 180-day 90-day period
prior to the date his or her | 2 | | annuity payments commence to waive the normal form
of annuity | 3 | | payment and receive an optional form of payment as described in
| 4 | | subsection (h). If the participant is married and elects an | 5 | | optional form of
payment under subsection (h) other than a | 6 | | joint and survivor annuity with the
eligible spouse designated | 7 | | as the contingent annuitant, then such election
shall require | 8 | | the consent of his or her eligible spouse in the manner | 9 | | described
in subsection (d). At any time during the 180-day | 10 | | 90-day period preceding the date the
participant's payment | 11 | | period begins, the participant may revoke the optional form
of | 12 | | payment elected under this subsection (c) and reinstate | 13 | | coverage under the qualified
joint and survivor annuity without | 14 | | the spouse's consent, but an election to
revoke the optional | 15 | | form elected and elect a new optional form of payment or | 16 | | designate a
different contingent annuitant shall not be | 17 | | effective without the eligible
spouse's consent.
| 18 | | (d) The eligible spouse's consent to any election made
| 19 | | pursuant to this Section that requires the eligible spouse's | 20 | | consent shall be
in writing and shall acknowledge the effect of | 21 | | the consent. In addition, the
eligible spouse's signature on | 22 | | the written consent must be witnessed by a
notary public. The | 23 | | eligible spouse's consent need not be obtained if the
system is | 24 | | satisfied that there is no eligible spouse, that the eligible | 25 | | spouse
cannot be located, or because of any other relevant | 26 | | circumstances. An eligible
spouse's consent under this Section |
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| 1 | | is valid only with respect to the specified
optional form of | 2 | | payment and, if applicable, contingent
annuitant designated by | 3 | | the participant. If the optional form of payment or
the | 4 | | contingent annuitant is subsequently changed (other than
by a | 5 | | revocation of the optional form of payment and reinstatement of | 6 | | the qualified joint
and survivor annuity), a new consent by the | 7 | | eligible spouse is required. The
eligible spouse's consent to | 8 | | an election made by a participant pursuant to this
Section, | 9 | | once made, may not be revoked by the eligible spouse.
| 10 | | (e) Within a reasonable period of time preceding the date a
| 11 | | participant's annuity commences, a participant shall be | 12 | | supplied with a written
explanation of (1) the terms and | 13 | | conditions of the normal form single-life
annuity and qualified | 14 | | joint and survivor annuity, (2) the
participant's right to | 15 | | elect a single-life annuity or an optional
form of payment | 16 | | under subsection (h) subject to his or her eligible
spouse's | 17 | | consent, if applicable, and (3) the participant's right to
| 18 | | reinstate coverage under the qualified joint and survivor | 19 | | annuity
prior to his or her annuity commencement date by | 20 | | revoking an election of an
optional form of payment under | 21 | | subsection (h).
| 22 | | (f) If a married participant with at least 1.5 years of
| 23 | | service dies prior to commencing retirement annuity payments | 24 | | and prior to
taking a refund under Section 15-154, his or her | 25 | | eligible spouse is entitled
to receive a pre-retirement | 26 | | survivor annuity, if there is not then in effect
a waiver of |
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| 1 | | the pre-retirement survivor annuity. The pre-retirement | 2 | | survivor
annuity payable under this subsection shall be a | 3 | | monthly annuity payable for
the eligible spouse's life, | 4 | | commencing as of the beginning of the month next
following the | 5 | | later of the date of the participant's death or the date the
| 6 | | participant would have first met the eligibility requirements | 7 | | for retirement,
and continuing through the beginning of the | 8 | | month in which the death of the
eligible spouse occurs. The | 9 | | monthly amount payable to the spouse under the
pre-retirement | 10 | | survivor annuity shall be equal to the monthly
amount that | 11 | | would be payable as a survivor annuity under the qualified | 12 | | joint
and survivor annuity described in subsection (b) if: (1) | 13 | | in the case of a
participant who dies on or after the date on | 14 | | which the participant has
met the eligibility requirements for | 15 | | retirement, the participant had retired
with an immediate | 16 | | qualified joint and
survivor annuity on the day before the | 17 | | participant's date of death; or (2) in
the case of a | 18 | | participant who dies before the earliest date on
which the | 19 | | participant would have met the eligibility requirements for | 20 | | retirement age, the participant had separated from
service on | 21 | | the date of death, survived to the earliest retirement age | 22 | | based
on service prior to his or her death, retired with an | 23 | | immediate qualified
joint and survivor annuity at the earliest | 24 | | retirement age, and died on the day
after the day on which the | 25 | | participant would have attained the earliest
retirement age.
| 26 | | (g) A married participant who has not retired may elect at |
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| 1 | | any time to
waive the pre-retirement survivor annuity described | 2 | | in subsection (f). Any
such election shall require the consent | 3 | | of the participant's eligible spouse
in the manner described in | 4 | | subsection (d). A waiver of the pre-retirement
survivor annuity | 5 | | shall increase the lump sum death benefit payable under
| 6 | | subsection (b) of Section 15-141. Prior to electing any waiver | 7 | | of the
pre-retirement survivor annuity, the participant shall | 8 | | be provided with a
written explanation of (1) the terms and | 9 | | conditions of the pre-retirement
survivor annuity and the death | 10 | | benefits payable from the system both with and
without the | 11 | | pre-retirement survivor annuity, (2) the participant's right | 12 | | to
elect a waiver of the pre-retirement survivor annuity | 13 | | coverage subject to his
or her spouse's consent, and (3) the | 14 | | participant's right to reinstate
pre-retirement survivor | 15 | | annuity coverage at any time by revoking a prior waiver
of such | 16 | | coverage.
| 17 | | (h) By filing a timely election with the system, a | 18 | | participant who will
be eligible to receive a retirement | 19 | | annuity under this Section may waive the
normal form of annuity | 20 | | payment described in subsection (b), subject to
obtaining the | 21 | | consent of his or her eligible spouse, if applicable, and elect
| 22 | | to receive any one of the following optional forms of payment:
| 23 | | (1) Joint and Survivor Annuity Options: The | 24 | | participant may elect to
receive a reduced annuity payable | 25 | | for his or her life and to have a lifetime
survivorship | 26 | | annuity in a monthly amount equal to 50%, 75%, or 100% (as |
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| 1 | | elected
by the participant) of that reduced monthly amount, | 2 | | to be paid after the
participant's death to his or her | 3 | | contingent annuitant, if the contingent
annuitant is alive | 4 | | at the time of the participant's death.
| 5 | | (2) Single-Life Annuity Option (optional for married | 6 | | participants). The
participant may elect to receive a | 7 | | single-life annuity payable for his or her
life only.
| 8 | | (3) Lump sum retirement benefit. The participant may | 9 | | elect to receive a
lump sum retirement benefit that is | 10 | | equal to the amount of a refund payable
under Section | 11 | | 15-154(a-2).
| 12 | | All joint and survivor annuity forms shall be in an amount that | 13 | | is the actuarial
equivalent of the single-life annuity.
| 14 | | For the purposes of this Section, the term "contingent | 15 | | annuitant" means the
beneficiary who is designated by a | 16 | | participant at the time the participant
elects a joint and | 17 | | survivor annuity to receive the lifetime survivorship
annuity | 18 | | in the event the beneficiary survives the participant at the
| 19 | | participant's death.
| 20 | | (i) Under no circumstances may an option be elected, | 21 | | changed, or revoked
after the date the participant's retirement | 22 | | annuity commences.
| 23 | | (j) An election made pursuant to subsection (h)
shall | 24 | | become inoperative if the participant or the
contingent | 25 | | annuitant dies before the date the participant's annuity | 26 | | payments
commence, or if the eligible spouse's consent is |
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| 1 | | required and not given.
| 2 | | (k) (Blank).
| 3 | | (l) The automatic annual increases described in subsection | 4 | | (d) of Section
15-136 shall apply to retirement benefits under | 5 | | the portable benefit package
and the automatic annual increases | 6 | | described in subsection (j) of Section
15-145 shall apply to | 7 | | survivor benefits under the portable benefit package.
| 8 | | (Source: P.A. 96-586, eff. 8-18-09.)
| 9 | | (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
| 10 | | Sec. 15-139.
Retirement annuities; cancellation; suspended | 11 | | during
employment.
| 12 | | (a) If an annuitant returns to employment for an employer
| 13 | | within 60 days after the beginning of the retirement annuity | 14 | | payment
period, the retirement annuity shall be cancelled, and | 15 | | the annuitant shall
refund to the System the total amount of | 16 | | the retirement annuity payments
which he or she received. If | 17 | | the retirement annuity is cancelled, the
participant shall | 18 | | continue to participate in the System.
| 19 | | (b) If an annuitant retires prior to age 60 and receives or | 20 | | becomes
entitled to receive during any month compensation in | 21 | | excess of the monthly
retirement annuity (including any | 22 | | automatic annual increases) for services
performed after the | 23 | | date of retirement for any employer under this System, that
| 24 | | portion of the monthly
retirement annuity provided by employer | 25 | | contributions shall not be payable.
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| 1 | | If an annuitant retires at age 60 or over and receives
or | 2 | | becomes entitled to receive during any academic year | 3 | | compensation in
excess of the difference between his or her | 4 | | highest annual earnings prior
to retirement and his or her | 5 | | annual retirement annuity computed under Rule
1, Rule 2, Rule | 6 | | 3, Rule 4, or Rule 5 of Section 15-136, or under Section
| 7 | | 15-136.4,
for services performed after
the date of retirement | 8 | | for any employer under this System, that portion of
the monthly | 9 | | retirement annuity provided by employer contributions shall be
| 10 | | reduced by an amount equal to the compensation that exceeds | 11 | | such difference.
| 12 | | However, any remuneration received for serving as a member | 13 | | of the
Illinois Educational Labor Relations Board shall be | 14 | | excluded from
"compensation" for the purposes of this | 15 | | subsection (b), and serving as a
member of the Illinois | 16 | | Educational Labor Relations Board shall not be
deemed to be a | 17 | | return to employment for the purposes of this Section.
This | 18 | | provision applies without regard to whether service was | 19 | | terminated
prior to the effective date of this amendatory Act | 20 | | of 1991.
| 21 | | (c) If an employer certifies that an annuitant has been | 22 | | reemployed
on a permanent and continuous basis or in a position
| 23 | | in which the annuitant is expected to serve for at least 9 | 24 | | months, the
annuitant shall resume his or her status as a | 25 | | participating employee
and shall be entitled to all rights | 26 | | applicable to
participating employees upon filing with the |
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| 1 | | board an
election to forego all annuity payments during the | 2 | | period
of reemployment. Upon subsequent retirement, the | 3 | | retirement
annuity shall consist of the annuity which was | 4 | | terminated by the reemployment,
plus the additional retirement | 5 | | annuity based upon service
granted during the period of | 6 | | reemployment, but the combined retirement
annuity shall not | 7 | | exceed the maximum
annuity applicable on the date of the last | 8 | | retirement.
| 9 | | The total service and earnings credited before and after | 10 | | the initial
date of retirement shall be considered in | 11 | | determining eligibility of the
employee or the employee's | 12 | | beneficiary to benefits under this
Article, and in calculating | 13 | | final rate of earnings.
| 14 | | In determining the death benefit
payable to a beneficiary | 15 | | of an annuitant who again becomes a participating
employee | 16 | | under this Section, accumulated normal and additional
| 17 | | contributions shall be considered as the sum of the accumulated | 18 | | normal and
additional contributions at the date of initial | 19 | | retirement and the
accumulated normal and additional | 20 | | contributions credited after that date,
less the sum of the | 21 | | annuity payments received by the annuitant.
| 22 | | The survivors insurance benefits provided under Section | 23 | | 15-145 shall not
be applicable to an annuitant who resumes his | 24 | | or her status as a
participating employee, unless the | 25 | | annuitant, at the time of initial
retirement, has a survivors | 26 | | insurance beneficiary who could qualify
for such benefits.
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| 1 | | If the participant's annuitant's employment is terminated | 2 | | because of circumstances
other than death before 9 months from | 3 | | the date of reemployment, the
provisions of this Section | 4 | | regarding resumption of status as a
participating employee | 5 | | shall not apply. The normal and survivors insurance
| 6 | | contributions which are deducted during this period shall be | 7 | | refunded to
the annuitant without interest, and subsequent | 8 | | benefits under this Article
shall be the same as those which | 9 | | were applicable prior to the date the
annuitant resumed | 10 | | employment.
| 11 | | The amendments made to this Section by this amendatory Act | 12 | | of the 91st
General Assembly apply without regard to whether | 13 | | the annuitant was in service
on or after the effective date of | 14 | | this amendatory Act.
| 15 | | (Source: P.A. 91-887 (Sections 10 and 25), eff. 7-6-00; 92-16, | 16 | | eff.
6-28-01.)
| 17 | | (40 ILCS 5/15-153.2) (from Ch. 108 1/2, par. 15-153.2)
| 18 | | Sec. 15-153.2. Disability retirement annuity. A | 19 | | participant whose
disability benefits are discontinued under | 20 | | the provisions of clause (6) of
Section 15-152 and who is not a | 21 | | participant in the optional retirement plan
established under | 22 | | Section 15-158.2 is entitled to a disability
retirement annuity | 23 | | of 35% of the basic compensation which was payable to the
| 24 | | participant at the time that disability began, provided that | 25 | | the board determines that the participant has a medically |
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| 1 | | determinable physical or
mental impairment that prevents him or | 2 | | her from
engaging in any substantial gainful activity, and | 3 | | which can be expected to
result in death or which has lasted or | 4 | | can be expected to last for a continuous
period of not less | 5 | | than 12 months.
| 6 | | The board's determination of whether a participant is | 7 | | disabled shall be
based upon:
| 8 | | (i) a written certificate from one or more licensed and | 9 | | practicing
physicians appointed by or acceptable to the | 10 | | board, stating that the
participant is unable to engage in | 11 | | any substantial gainful activity; and
| 12 | | (ii) any other medical examinations, hospital records, | 13 | | laboratory
results, or other information necessary for | 14 | | determining the employment
capacity and condition of the | 15 | | participant.
| 16 | | The terms "medically determinable physical or mental | 17 | | impairment" and
"substantial gainful activity" shall have the | 18 | | meanings ascribed to them in the
federal Social Security Act, | 19 | | as now or hereafter amended, and the
regulations issued | 20 | | thereunder.
| 21 | | The disability retirement annuity payment period shall | 22 | | begin immediately
following the expiration of the disability | 23 | | benefit payments under clause
(6) of Section 15-152 and shall | 24 | | be discontinued for a recipient of a disability retirement | 25 | | annuity when (1) the physical or
mental impairment no longer | 26 | | prevents the participant from engaging in any
substantial |
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| 1 | | gainful activity, (2) the participant dies or (3) the | 2 | | participant
elects to receive a retirement annuity under | 3 | | Sections 15-135 and 15-136.
If a person's disability retirement | 4 | | annuity is discontinued under clause
(1), all rights and | 5 | | credits accrued in the system on the date that the
disability | 6 | | retirement annuity began shall be restored, and the disability
| 7 | | retirement annuity paid shall be considered as disability | 8 | | payments under
clause (6) of Section 15-152.
| 9 | | (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-511, | 10 | | eff.
8-22-97; 90-766, eff. 8-14-98.)
| 11 | | Section 90. The State Mandates Act is amended by adding | 12 | | Section 8.36 as follows: | 13 | | (30 ILCS 805/8.36 new) | 14 | | Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8 | 15 | | of this Act, no reimbursement by the State is required for the | 16 | | implementation of any mandate created by this amendatory Act of | 17 | | the 97th General Assembly.
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.
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