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90_HB0015enr
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Amends the Chicago Municipal and Laborer Articles of the
Pension Code. Provides that new annuities are payable on the
first day of the calendar month, without proration.
Authorizes the City to substitute funds obtained from
borrowings and other sources for a portion of its authorized
tax levy for pension purposes. Expands the investment
authority of the board. Eliminates the provision restricting
investments to the items specified in Section 1-113 of the
Code; provides that investments in those items are deemed to
be prudent. Contains related provisions. Provides that
persons who have been out of service for up to 90 days and
persons who are active participants in a reciprocal
retirement system but are not in City service may establish
credit for certain periods of service. Authorizes the Board
to adopt rules prescribing the manner of repaying refunds and
purchasing optional credits. Authorizes the Fund to accept
direct rollovers of moneys from other qualified retirement
plans. Changes the manner of calculating annual salary for
minimum annuity purposes; applies to persons withdrawing from
service on or after July 1, 1990 and makes the resulting
increases retroactive to the start of the affected annuities,
without interest. Also makes technical changes. Amends the
Chicago Laborer Article of the Pension Code to require
participation by employees of the boards of certain other
Chicago public pension funds. Provides that an employee may
establish credit in the Fund for service rendered as a police
officer, firefighter, or teacher. Amends the State Mandates
Act to require implementation without reimbursement.
Effective immediately.
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1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 8-125, 8-139, 8-158, 8-173, 8-201, 8-230, 8-233,
3 11-110, 11-124, 11-134.2, 11-153, 11-169, 11-190, 11-217, and
4 11-221 and adding Sections 8-230.6, 11-125.8, and 11-221.3
5 and to amend the State Mandates Act.
6 Be it enacted by the People of the State of Illinois,
7 represented in the General Assembly:
8 Section 5. The Illinois Pension Code is amended by
9 changing Sections 8-125, 8-139, 8-158, 8-173, 8-201, 8-230,
10 8-233, 11-110, 11-124, 11-134.2, 11-153, 11-169, 11-190,
11 11-217, and 11-221 and adding Sections 8-230.6, 11-125.8, and
12 11-221.3 as follows:
13 (40 ILCS 5/8-125) (from Ch. 108 1/2, par. 8-125)
14 Sec. 8-125. Annuity.
15 "Annuity": Equal monthly payments for life, unless
16 otherwise specified.
17 For annuities taking effect before January 1, 1998, the
18 first payment shall be due and payable one month after the
19 occurrence of the event upon which payment of the annuity
20 depends, and the last payment shall be due and payable as of
21 the date of the annuitant's death and shall be prorated from
22 the date of the last preceding payment to the date of death.;
23 provided that as to
24 For annuities taking effect on or after January 1, 1998
25 1991, payments shall be made as of the first day of the
26 calendar month during the annuity payment period, with the
27 first payment to be made as of the first day of the calendar
28 month coincidental with or next following the first day of
29 the annuity payment period, and the last payment to be made
30 as of the first day of the calendar month in which the
31 annuitant dies or the annuity payment period ends. For
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1 annuities taking effect on or after January 1, 1998, all
2 payments shall be for the entire calendar month, without
3 proration.
4 For the purposes of this Section, the "annuity payment
5 period" means the period beginning on the day after the
6 occurrence of the event upon which payment of the annuity
7 depends, and ending on the day upon which the death of the
8 annuitant or other event terminating the annuity occurs.
9 (Source: P.A. 86-1488.)
10 (40 ILCS 5/8-139) (from Ch. 108 1/2, par. 8-139)
11 Sec. 8-139. Reversionary annuity.
12 (a) An employee, prior to retirement on annuity, may
13 elect to take a lesser amount of annuity and provide, with
14 the actuarial value of the amount by which his annuity is
15 reduced, a reversionary annuity for a wife, husband, parent,
16 child, brother or sister. The option shall be exercised by
17 filing a written designation with the board prior to
18 retirement, and may be revoked by the employee at any time
19 before retirement. The death of the employee prior to his
20 retirement shall automatically void the option.
21 (b) The death of the designated reversionary annuitant
22 prior to the employee's retirement shall automatically void
23 the option. If the reversionary annuitant dies after the
24 employee's retirement, and before the death of the employee
25 annuitant, the reduced annuity being paid to the retired
26 employee annuitant shall be increased to the amount of
27 annuity before reduction for the reversionary annuity and no
28 reversionary annuity shall be payable.
29 The option is subject to the further condition that no
30 reversionary annuity shall be paid if the employee dies
31 before the expiration of 730 days from the date his written
32 designation was filed with the board, even though he has
33 retired and is receiving a reduced annuity.
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1 (c) The employee exercising this option shall not reduce
2 his retirement annuity by more than $200 a month, or elect to
3 provide a reversionary annuity of less than $50 per month. No
4 option shall be permitted if the reversionary annuity for a
5 widow, when added to the widow's annuity payable under this
6 Article, exceeds 80% of the reduced annuity payable to the
7 employee.
8 (d) A reversionary annuity shall begin on the day
9 following the death of the annuitant and shall be paid as
10 provided in Section 8-125., with the first payment due and
11 payable one month later, and shall continue monthly
12 thereafter until the death of the reversionary annuitant;
13 provided that as to reversionary annuities taking effect on
14 or after January 1, 1991, the reversionary annuity shall
15 begin on the day following the death of the annuitant, with
16 the first payment to be made on the first day of the calendar
17 month following the death of the employee annuitant, and the
18 last payment to be made on the first day of the calendar
19 month in which the reversionary annuitant dies.
20 (e) The increases in annuity provided in Section 8-137
21 of this Article shall, as to an employee so electing a
22 reduced annuity relate to the amount of the original annuity,
23 and such amount shall constitute the annuity on which such
24 automatic increases shall be based.
25 (f) For annuities elected after June 30, 1983, the
26 amount of the monthly reversionary annuity shall be
27 determined by multiplying the amount of the monthly reduction
28 in the employee's annuity by the factor in the following
29 table based on the age of the employee and the difference in
30 the age of the employee and the age of the reversionary
31 annuitant at the starting date of the employee's annuity:
32 Employee's Age
33 Reversionary
34 Annuitant's Age 55-57 58-60 61-63 64-66 67-69 70 &
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1 Over
2 30 or more years 2.18 1.84 1.55 1.29 1.08 0.91
3 younger
4 25-29 years younger 2.29 1.94 1.63 1.37 1.15 0.97
5 20-24 years younger 2.44 2.07 1.75 1.48 1.25 1.06
6 15-19 years younger 2.65 2.26 1.92 1.63 1.39 1.19
7 10-14 years younger 2.94 2.53 2.16 1.85 1.59 1.37
8 5-9 years younger 3.35 2.90 2.51 2.16 1.88 1.64
9 0-4 years younger 3.93 3.44 3.00 2.61 2.29 2.02
10 1-5 years older 4.76 4.21 3.71 3.26 2.88 2.56
11 6-10 years older 5.93 5.30 4.71 4.16 3.70 3.29
12 11-15 years older 7.58 6.83 6.11 5.40 4.82 4.32
13 16-20 years older 9.84 8.93 8.02 7.13 6.43 5.87
14 21-25 years older 12.91 11.82 10.73 9.66 8.88 8.35
15 26-30 years older 17.15 15.96 14.80 13.65 12.97 12.82
16 31 or more years 23.34 22.32 21.45 20.62 20.85 23.28
17 older
18 (Source: P.A. 86-1488.)
19 (40 ILCS 5/8-158) (from Ch. 108 1/2, par. 8-158)
20 Sec. 8-158. Child's annuity. A child's annuity is
21 payable monthly after the death of an employee parent to the
22 child until the child's attainment of age 18, under the
23 following conditions, if the child was born before the
24 employee attained age 65, and before he withdrew from
25 service:
26 (a) upon death resulting from injury incurred in
27 the performance of an act of duty;
28 (b) upon death in service from any cause other than
29 injury incurred in the performance of an act of duty, if
30 the employee has at least 4 years of service after the
31 date of his original entry into service, and at least 2
32 years after the date of his latest re-entry;
33 (c) upon death of an employee who withdraws from
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1 service after age 55 and who has entered upon or is
2 eligible for annuity.
3 Payment shall be made as provided in Section 8-125. The
4 first payment shall become due and payable one month after
5 the date of death.
6 (Source: P.A. 84-1028.)
7 (40 ILCS 5/8-173) (from Ch. 108 1/2, par. 8-173)
8 Sec. 8-173. Financing; tax levy.
9 (a) Except as provided in subsection (f) of this
10 Section, the city council of the city shall levy a tax
11 annually upon all taxable property in the city at a rate that
12 will produce a sum which, when added to the amounts deducted
13 from the salaries of the employees or otherwise contributed
14 by them will be sufficient for the requirements of this
15 Article, but which when extended will produce an amount not
16 to exceed the greater of the following: (a) The sum obtained
17 by the levy of a tax of .1093% of the value, as equalized or
18 assessed by the Department of Revenue, of all taxable
19 property within such city, or (b) the sum of $12,000,000.
20 However any city in which a Fund has been established and in
21 operation under this Article for more than 3 years prior to
22 1970, that city shall levy for the year 1970 a tax at a rate
23 on the dollar of assessed valuation of all taxable property
24 that will produce, when extended, an amount not to exceed 1.2
25 times the total amount of contributions made by employees to
26 the Fund for annuity purposes in the calendar year 1968, and,
27 for the year 1971 and 1972 such levy that will produce, when
28 extended, an amount not to exceed 1.3 times the total amount
29 of contributions made by of employees to the Fund for annuity
30 purposes in the calendar years 1969 and 1970, respectively;
31 and for the year 1973 an amount not to exceed 1.365 times
32 such total amount of contributions made by employees for
33 annuity purposes in the calendar year 1971; and for the year
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1 1974 an amount not to exceed 1.430 times such total amount of
2 contributions made by employees for annuity purposes in the
3 calendar year 1972; and for the year 1975 an amount not to
4 exceed 1.495 times such total amount of contributions made by
5 employees for annuity purposes in the calendar year 1973; and
6 for the year 1976 an amount not to exceed 1.560 times such
7 total amount of contributions made by employees for annuity
8 purposes in the calendar year 1974; and for the year 1977 an
9 amount not to exceed 1.625 times such total amount of
10 contributions made by employees for annuity purposes in the
11 calendar year 1975; and for the year 1978 and each year
12 thereafter such levy that will produce, when extended, an
13 amount not to exceed 1.690 times the total amount of
14 contributions made by or on behalf of employees to the Fund
15 for annuity purposes in the calendar year 2 years prior to
16 the year for which the annual applicable tax is levied.
17 The tax shall be levied and collected in like manner with
18 the general taxes of the city, and shall be exclusive of and
19 in addition to the amount of tax the city is now or may
20 hereafter be authorized to levy for general purposes under
21 any laws which may limit the amount of tax which the city may
22 levy for general purposes. The county clerk of the county in
23 which the city is located, in reducing tax levies under the
24 provisions of any Act concerning the levy and extension of
25 taxes, shall not consider the tax herein provided for as a
26 part of the general tax levy for city purposes, and shall not
27 include the same within any limitation of the percent of the
28 assessed valuation upon which taxes are required to be
29 extended for such city.
30 Revenues derived from such tax shall be paid to the city
31 treasurer of the city as collected and held by him for the
32 benefit of the fund.
33 If the payments on account of taxes are insufficient
34 during any year to meet the requirements of this Article, the
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1 city may issue tax anticipation warrants against the current
2 tax levy.
3 (b) On or before January 10, annually, the board shall
4 notify the city council of the requirements of this Article
5 that the tax herein provided shall be levied for that current
6 year. The board shall compute the amounts necessary to be
7 credited to the reserves established and maintained as herein
8 provided, and shall make an annual determination of the
9 amount of the required city contributions, and certify the
10 results thereof to the city council.
11 (c) In respect to employees of the city who are
12 transferred to the employment of a park district by virtue of
13 the "Exchange of Functions Act of 1957", the corporate
14 authorities of the park district shall annually levy a tax
15 upon all the taxable property in the park district at such
16 rate per cent of the value of such property, as equalized or
17 assessed by the Department of Revenue, as shall be
18 sufficient, when added to the amounts deducted from their
19 salaries and otherwise contributed by them to provide the
20 benefits to which they and their dependents and beneficiaries
21 are entitled under this Article. The city shall not levy a
22 tax hereunder in respect to such employees.
23 The tax so levied by the park district shall be in
24 addition to and exclusive of all other taxes authorized to be
25 levied by the park district for corporate, annuity fund, or
26 other purposes. The county clerk of the county in which the
27 park district is located, in reducing any tax levied under
28 the provisions of any act concerning the levy and extension
29 of taxes shall not consider such tax as part of the general
30 tax levy for park purposes, and shall not include the same in
31 any limitation of the per cent of the assessed valuation upon
32 which taxes are required to be extended for the park
33 district. The proceeds of the tax levied by the park
34 district, upon receipt by the district, shall be immediately
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1 paid over to the city treasurer of the city for the uses and
2 purposes of the fund.
3 The various sums, to be contributed by the city and park
4 district and allocated for the purposes of this Article and
5 any interest to be contributed by the city, shall be derived
6 from the revenue from said tax or otherwise as expressly
7 provided in this Section.
8 If it is not possible or practicable for the city to make
9 contributions for age and service annuity and widow's annuity
10 at the same time that employee contributions are made for
11 such purposes, such city contributions shall be construed to
12 be due and payable as of the end of the fiscal year for which
13 the tax is levied and shall accrue thereafter with interest
14 at the effective rate until paid.
15 (d) With respect to employees whose wages are funded as
16 participants under the Comprehensive Employment and Training
17 Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
18 93-567, 88 Stat. 1845), hereinafter referred to as CETA,
19 subsequent to October 1, 1978, and in instances where the
20 board has elected to establish a manpower program reserve,
21 the board shall compute the amounts necessary to be credited
22 to the manpower program reserves established and maintained
23 as herein provided, and shall make a periodic determination
24 of the amount of required contributions from the City to the
25 reserve to be reimbursed by the federal government in
26 accordance with rules and regulations established by the
27 Secretary of the United States Department of Labor or his
28 designee, and certify the results thereof to the City
29 Council. Any such amounts shall become a credit to the City
30 and will be used to reduce the amount which the City would
31 otherwise contribute during succeeding years for all
32 employees.
33 (e) In lieu of establishing a manpower program reserve
34 with respect to employees whose wages are funded as
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1 participants under the Comprehensive Employment and Training
2 Act of 1973, as authorized by subsection (d), the board may
3 elect to establish a special municipality contribution rate
4 for all such employees. If this option is elected, the City
5 shall contribute to the Fund from federal funds provided
6 under the Comprehensive Employment and Training Act program
7 at the special rate so established and such contributions
8 shall become a credit to the City and be used to reduce the
9 amount which the City would otherwise contribute during
10 succeeding years for all employees.
11 (f) In lieu of levying all or a portion of the tax
12 required under this Section in any year, the city may deposit
13 with the city treasurer no later than March 1 of that year
14 for the benefit of the fund, to be held in accordance with
15 this Article, an amount that, together with the taxes levied
16 under this Section for that year, is not less than the amount
17 of the city contributions for that year as certified by the
18 board to the city council. The deposit may be derived from
19 any source legally available for that purpose, including, but
20 not limited to, the proceeds of city borrowings. The making
21 of a deposit shall satisfy fully the requirements of this
22 Section for that year to the extent of the amounts so
23 deposited.
24 (Source: P.A. 81-1536.)
25 (40 ILCS 5/8-201) (from Ch. 108 1/2, par. 8-201)
26 Sec. 8-201. To invest the reserves. To invest the
27 reserves of the fund in accordance with Sections 1-109,
28 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115 of this Act.
29 Investments made in accordance with Section 1-113 shall be
30 deemed to be prudent. the provisions set forth in Section
31 1-113 of this Act.
32 The retirement board may sell any security held by it at
33 any time it deems it desirable.
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1 The board may enter into agreements and execute documents
2 that it determines to be necessary to complete any investment
3 transaction.
4 All investments shall be clearly held and accounted for
5 to indicate ownership by the board. The board may direct the
6 registration of securities in its own name or in the name of
7 a nominee created for the express purpose of registration of
8 securities by a savings and loan association or national or
9 State bank or trust company authorized to conduct a trust
10 business in the State of Illinois.
11 Investments shall be carried at cost or at book value in
12 accordance with accounting procedures approved by the board.
13 No adjustments shall be made in investments carrying values
14 for ordinary current market price fluctuations, but reserves
15 may be provided to account for possible losses or unrealized
16 gains, as determined by the board.
17 The book value of investments held by the fund in
18 commingled investment accounts shall be the cost of its units
19 of participation in those commingled accounts as recorded on
20 the books of the board.
21 The board of trustees of any fund established under this
22 Article may not transfer its investment authority, nor
23 transfer the assets of the fund, to any other person or
24 entity for the purpose of consolidating or merging its assets
25 and management with any other pension fund or public
26 investment authority, unless the board resolution authorizing
27 that such transfer is submitted for approval to the
28 contributors and retirees of the fund at elections held not
29 less than 30 days after the adoption of the such resolution
30 by the board, and the such resolution is approved by a
31 majority of the votes cast on the question in both the
32 contributors election and the retirees election. The
33 election procedures and qualifications governing the election
34 of trustees shall govern the submission of resolutions for
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1 approval under this paragraph, insofar as they may be made
2 applicable.
3 (Source: P.A. 83-970.)
4 (40 ILCS 5/8-230) (from Ch. 108 1/2, par. 8-230)
5 Sec. 8-230. Right of employee to contribute for all
6 periods of service. An employee may contribute to the fund
7 for all periods of service (including periods served in the
8 armed forces of the United States if he left the service of
9 the employer to enter the armed forces and returned to the
10 service of the employer within 180 days after his discharge
11 from the armed service, and if the employer has not made such
12 payment on his behalf) except for those periods for which he
13 received credit in another annuity and benefit fund or
14 pension fund in operation in the city for the benefit of
15 employees of the employer, rendered by him to the employer
16 after the effective date by virtue of appointment or election
17 to a position not covered by the provisions of this Article,
18 such amounts as he would have contributed for annuity
19 purposes had deductions from his salary been made for the
20 purposes of the fund, at the rates in effect and in
21 accordance with the provisions relating to future entrants
22 and present employees during the period such service was
23 rendered. Upon making such payments, he shall be credited
24 with concurrent city contributions at the rates in effect
25 during the time such service was rendered. Such payments and
26 concurrent city contributions shall be made with interest at
27 the effective rate and shall, together with all other amounts
28 contributed by or for such employee, be considered in
29 computing the annuities for him and his widow, and any such
30 service for which payment is made shall be counted as service
31 under this Article.
32 Until the effective date of this amendatory Act of 1991,
33 in order that the foregoing service may be counted for the
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1 purposes of Section 8-138, payment must be made in full while
2 the employee is in service; if payment in full is not made,
3 any payments made on account shall be refunded to him when he
4 withdraws from service, or paid to his widow if he is dead.
5 If there is no widow, a refund shall be paid as provided in
6 this Article, with interest at the effective rate. An
7 employee, however, may elect to have such partial payments,
8 together with the concurrent city contributions and interest,
9 credited and applied for age and service and widow's annuity,
10 for himself and his wife, on the assumption that the payments
11 made shall apply beginning with his earliest service, or his
12 widow, if the employee dies in service, may elect to have
13 such amounts credited for widow's annuity purposes, to the
14 extent that they do not increase her annuity above that which
15 she could have received if her proportionate part of the
16 payments and related city contributions were included and
17 considered, and an annuity were fixed for her on the
18 assumption her deceased husband had continued in service at
19 the rate of his final salary until he became age 65.
20 Beginning on the effective date of this amendatory Act of
21 1991, an employee who is still in service may elect to
22 establish credit under this Section for only a fraction of
23 the service that he or she is eligible to establish under
24 this Section. In such cases, the credit established shall be
25 deemed to relate to the earliest service for which credit may
26 be established, and shall be counted for the purposes of
27 Section 8-138. However, in no event shall such credit be
28 granted until the corresponding employee contributions have
29 been paid.
30 Beginning on the effective date of this amendatory Act of
31 1997, any employee who is in service, or within 90 days after
32 withdrawing from service, or who is an active contributor to
33 a participating system as defined in the Retirement Systems
34 Reciprocal Act, may make payments and establish credit under
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1 this Section.
2 (Source: P.A. 86-1488.)
3 (40 ILCS 5/8-230.6 new)
4 Sec. 8-230.6. Payments and rollovers.
5 (a) The Board may adopt rules prescribing the manner of
6 repaying refunds and purchasing any other credits permitted
7 under this Article. The rules may prescribe the manner of
8 calculating interest when payments or repayments are made in
9 installments.
10 (b) Rollover contributions from other retirement plans
11 qualified under the Internal Revenue Code of 1986 may be used
12 to purchase any optional credit or repay any refund permitted
13 under this Article.
14 (40 ILCS 5/8-233) (from Ch. 108 1/2, par. 8-233)
15 Sec. 8-233. Basis of annual salary. For the purpose of
16 this Article, the annual salary of an employee whose salary
17 or wage wages is appropriated, fixed, or arranged in the
18 annual appropriation ordinance upon other than an annual
19 basis shall be determined as follows:
20 (a) If the employee is paid on a monthly basis, the
21 annual salary is:--Weekly basis: 12 times the such monthly
22 salary. If the employee is paid on a weekly basis, the annual
23 salary is; 52 times the such weekly salary.; hereby
24 established as the norm.
25 "Monthly salary" means the amount of compensation or
26 salary appropriated, and payable for a normal and regular
27 month's work in the employee's position in the service., and
28 "Weekly salary" means the such amount of compensation or
29 salary appropriated and payable for a normal and regular
30 week's work in the employee's position in the service., and
31 If the work is on a regularly scheduled regular schedule part
32 time basis, then "monthly salary" and "weekly salary" refer,
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1 respectively, to the such part time monthly or weekly salary.
2 If the appropriation for the position is for a shorter
3 period than 12 months a year, or 52 weeks a year if on a
4 weekly basis, or the employee is in a class, grade, or
5 category in which the employee his assignment calls for or he
6 normally works for fewer a lesser period than 12 months or 52
7 weeks a year, then the such basis shall be adjusted downward
8 according and to the extent that the appropriated or
9 customary work such period is in less than the normal 12
10 months or 52 weeks of service in a year.
11 Compensation for overtime, at regular or overtime rates,
12 that is paid in addition to the appropriated regular and
13 normal monthly or weekly salary shall not be considered.
14 (b) If the employee is paid on a daily basis, the annual
15 salary is: Hourly basis: 260 times the such daily wage. If
16 the employee is paid on an hourly basis, the annual salary
17 is; 2080 times the such hourly wage.; hereby established as
18 the norm.
19 The norm is based on a 12-month per year, 5-day work week
20 of 8 hours per day and 40 hours per week, with consideration
21 given only to time compensated for at the straight time rate
22 of compensation or wage. The norm shall be increased
23 (subject to a maximum of 300 days or 2400 hours per year,) or
24 decreased for, as respects an employee, according and to the
25 extent that the normal and established work period, at the
26 straight time compensation or wage, for the position held by
27 him in the class, grade, or category in which the employee he
28 is assigned, is for a greater or lesser number of months,
29 weeks, days, or hours than the period on which the
30 established norm is based.
31 "Daily wage", and "hourly wage", mean, respectively, the
32 normal, regular, or basic straight time rate of compensation
33 or wage appropriated and payable for a normal and regular
34 day's work, or hour's work, in the employee's position in the
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1 service.
2 Any time worked in excess of the norm (or the increased
3 or decreased norm, whichever is applicable) that, and
4 compensation, salary, or wage attached to or paid for such
5 time, which is compensated for at overtime, premium, or other
6 than regular or basic straight time rates, shall not be
7 considered as time worked, and the compensation for that work
8 shall not be considered or as salary or wage. Such time and
9 compensation shall in every case and for all purposes be
10 considered overtime, and shall be excluded for all purposes
11 under this Section and Article. However, the straight time
12 portion of compensation or wage, for time worked on holidays
13 that which fall within an employee's established norm, shall
14 be included for all purposes under this Section and Article.
15 (c) For minimum annuity purposes under Section 8-138,
16 where a salary rate change occurs during the year, it shall
17 be considered that the annual salary wage for that any year
18 is (1) the annual equivalent of the at such monthly, weekly,
19 daily, or hourly salary or wage rate that as was applicable
20 for the greater number of months, weeks, days, or hours
21 (whichever is applicable), respectively, in the each year
22 under consideration, or (2) the annual equivalent of the
23 average salary or wage rate in effect for the employee during
24 the year, whichever is greater. The average salary or wage
25 rate shall be calculated by multiplying each salary or wage
26 rate in effect for the employee during the year by the number
27 of months, weeks, days, or hours (whichever is applicable)
28 during which that rate was in effect, and dividing the sum of
29 the resulting products by the total number of months, weeks,
30 days, or hours (whichever is applicable) worked by the
31 employee during the year.
32 (d) The changes to subsection (c) made by this
33 amendatory Act of 1997 apply to persons withdrawing from
34 service on or after July 1, 1990 and for each such person are
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1 intended to be retroactive to the date upon which the
2 affected annuity began. The Fund shall recompute the
3 affected annuity and shall pay the additional amount due for
4 the period before the increase resulting from this amendatory
5 Act in a lump sum, without interest.
6 (Source: Laws 1963, p. 3256.)
7 (40 ILCS 5/11-110) (from Ch. 108 1/2, par. 11-110)
8 Sec. 11-110. Employee, contributory, contributor or
9 participant.
10 "Employee", "contributory", "contributor" or
11 "participant":
12 (a) Any employee of an employer in a position classified
13 by the civil service commission thereof as labor service and
14 who was appointed to such position under the Civil Service
15 Act, other than by temporary appointment as defined in said
16 Act.;
17 (b) Any employee in the service of an employer before
18 the Civil Service Act came into effect for the employer.;
19 (c) Any person employed by the board.;
20 (d) Any person employed by a retirement board of any
21 other annuity and benefit fund in such city which is on a
22 reserve basis on the effective date or thereafter in
23 operation for the employer, other than the fund created by
24 this Article., who applies for participation in this fund
25 within 6 months from the date of his eligibility for
26 participation or within 6 months from August 1, 1949,
27 whichever is later;
28 (e) Any person employed after July 31, 1951, by
29 temporary appointment as defined in Section 10 of the Civil
30 Service Act, in a position classified by the Civil Service
31 Commission of the employer as labor service of the employer;
32 or in the case of a city operating under a municipal
33 personnel ordinance, any employee of an employer employed
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1 under the provisions of such municipal personnel ordinance as
2 labor service of the employer.
3 (Source: P.A. 83-499.)
4 (40 ILCS 5/11-124) (from Ch. 108 1/2, par. 11-124)
5 Sec. 11-124. Annuity.
6 "Annuity": Equal monthly payments for life, unless
7 terminated earlier under Section 11-148, 11-152, 11-153, or
8 11-230 otherwise specified in Sections 11-148 and 11-152.
9 For annuities taking effect before January 1, 1998, the
10 first payment shall be due and payable one month after the
11 occurrence of the event upon which payment of the annuity
12 depends, and payment shall be made for any part of a monthly
13 period in which death of the annuitant occurs.; provided that
14 as to
15 For annuities taking effect on or after January 1, 1998
16 1991, payments shall be made as of the first day of the
17 calendar month during the annuity payment period, with the
18 first payment to be made as of the first day of the calendar
19 month coincidental with or next following the first day of
20 the annuity payment period, and the last payment to be made
21 as of the first day of the calendar month in which the
22 annuitant dies or the annuity payment period ends. For
23 annuities taking effect on or after January 1, 1998, all
24 payments shall be for the entire calendar month, without
25 proration.
26 For the purposes of this Section, the "annuity payment
27 period" means the period beginning on the day after the
28 occurrence of the event upon which payment of the annuity
29 depends, and ending on the day upon which the death of the
30 annuitant or other event terminating the annuity occurs.
31 (Source: P.A. 86-1488.)
32 (40 ILCS 5/11-125.8 new)
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1 Sec. 11-125.8. Service as police officer, firefighter, or
2 teacher.
3 (a) Service rendered by an employee as a police officer
4 and member of the regularly constituted police department of
5 the city, or as a firefighter and regular member of the paid
6 fire department of the city, or as a teacher in the public
7 school system in the city shall be counted, for the purposes
8 of this Article, as service rendered as an employee of the
9 city. Salary received for any such service shall be treated,
10 for the purposes of this Article, as salary received for the
11 performance of duty as an employee.
12 (b) Credit shall be granted under subsection (a) only if
13 (1) the employee pays to the fund prior to his or her
14 separation from service an amount equal to the employee
15 contributions that would have been payable for that service,
16 based on the salary actually received, plus interest at the
17 effective rate, and (2) the employee has terminated any
18 credit for that service earned in any other annuity and
19 benefit fund or pension fund in operation in the city for the
20 benefit of police officers, firefighters, or teachers.
21 (40 ILCS 5/11-134.2) (from Ch. 108 1/2, par. 11-134.2)
22 Sec. 11-134.2. Reversionary annuity.
23 (a) An employee, prior to retirement on annuity, may
24 elect to take a lesser amount of annuity and provide, with
25 the actuarial value of the amount by which his annuity is
26 reduced, a reversionary annuity for a wife, husband, parent,
27 child, brother or sister. The option shall be exercised by
28 filing a written designation with the board prior to
29 retirement, and may be revoked by the employee at any time
30 before retirement. The death of the employee prior to his
31 retirement shall automatically void the option.
32 (b) The death of the designated reversionary annuitant
33 prior to the employee's retirement shall automatically void
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1 the option. If the reversionary annuitant dies after the
2 employee's retirement, and before the death of the employee
3 annuitant, the reduced annuity being paid to the retired
4 employee annuitant shall be increased to the amount of
5 annuity before reduction for the reversionary annuity and no
6 reversionary annuity shall be payable.
7 The option is subject to the further condition that no
8 reversionary annuity shall be paid if the employee dies
9 before the expiration of 730 days from the date his written
10 designation was filed with the board, even though he has
11 retired and is receiving a reduced annuity.
12 (c) The employee exercising this option shall not reduce
13 his retirement annuity by more than $200 per month, or elect
14 to provide a reversionary annuity of less than $50 per month.
15 No option shall be permitted if the reversionary annuity for
16 a widow, when added to the widow's annuity payable under this
17 Article, exceeds 80% of the reduced annuity payable to the
18 employee.
19 (d) A reversionary annuity shall begin on the day
20 following the death of the annuitant and shall be paid as
21 provided in Section 11-124., with the first payment due and
22 payable one month later, and shall continue monthly
23 thereafter until the death of the reversionary annuitant;
24 provided that as to reversionary annuities taking effect on
25 or after January 1, 1991, the reversionary annuity shall
26 begin on the day following the death of the annuitant, with
27 the first payment to be made on the first day of the calendar
28 month following the death of the employee annuitant, and the
29 last payment to be made on the first day of the calendar
30 month in which the reversionary annuitant dies.
31 (e) The increases in annuity provided in Section
32 11-134.1 of this Article shall, as to an employee so electing
33 a reduced annuity, relate to the amount of the original
34 annuity, and such amount shall constitute the annuity on
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1 which such increases shall be based.
2 (f) For annuities elected after June 30, 1983, the
3 amount of the monthly reversionary annuity shall be
4 determined by multiplying the amount of the monthly reduction
5 in the employee's annuity by the factor in the following
6 table based on the age of the employee and the difference in
7 the age of the employee and the age of the reversionary
8 annuitant at the starting date of the employee's annuity:
9 Employee's Age
10 Reversionary
11 Annuitant's Age 55-57 58-60 61-63 64-66 67-69 70 &
12 Over
13 30 or more years 2.18 1.84 1.55 1.29 1.08 0.91
14 younger
15 25-29 years younger 2.29 1.94 1.63 1.37 1.15 0.97
16 20-24 years younger 2.44 2.07 1.75 1.48 1.25 1.06
17 15-19 years younger 2.65 2.26 1.92 1.63 1.39 1.19
18 10-14 years younger 2.94 2.53 2.16 1.85 1.59 1.37
19 5-9 years younger 3.35 2.90 2.51 2.16 1.88 1.64
20 0-4 years younger 3.93 3.44 3.00 2.61 2.29 2.02
21 1-5 years older 4.76 4.21 3.71 3.26 2.88 2.56
22 6-10 years older 5.93 5.30 4.71 4.16 3.70 3.29
23 11-15 years older 7.58 6.83 6.11 5.40 4.82 4.32
24 16-20 years older 9.84 8.93 8.02 7.13 6.43 5.87
25 21-25 years older 12.91 11.82 10.73 9.66 8.88 8.35
26 26-30 years older 17.15 15.96 14.80 13.65 12.97 12.82
27 31 or more years 23.34 22.32 21.45 20.62 20.85 23.28
28 older
29 (Source: P.A. 86-1488.)
30 (40 ILCS 5/11-153) (from Ch. 108 1/2, par. 11-153)
31 Sec. 11-153. Child's annuity.
32 (a) A "Child's Annuity" shall be payable monthly after
33 the death of an employee parent to an unmarried child until
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1 the child's attainment of age 18 or marriage, whichever event
2 shall first occur, under the following conditions, if the
3 child was born or in esse before the employee attained age
4 65, and before he withdrew from service:
5 (1) upon death resulting from injury incurred in
6 the performance of an act of duty;
7 (2) upon death in service from any cause other than
8 injury incurred in the performance of duty, if the
9 employee has at least 4 years of service after the date
10 of his original entry into service, and at least 2 years
11 after the date of his latest re-entry;
12 (3) upon death of an employee who withdraws from
13 service after age 55 and who has entered upon or is
14 eligible for annuity.
15 Payment shall be made as provided in Section 11-124. The
16 first payment shall become due and payable one month after
17 the date of death. No payment shall be made for any
18 fractional part of the monthly period in which the annuitant
19 shall die or marry or attain age 18.
20 (b) After July 24, 1967, an adopted child shall be
21 entitled to the same child's annuity benefits provided for
22 natural children in this Article, if:
23 (1) the child was legally adopted by the employee
24 at least one year prior to the death of the employee; and
25 (2) the child was adopted before the employee
26 attained age 55.
27 (Source: P.A. 84-1028.)
28 (40 ILCS 5/11-169) (from Ch. 108 1/2, par. 11-169)
29 Sec. 11-169. Financing; tax levy.
30 (a) Except as provided in subsection (f) of this
31 Section, the city council of the city shall levy a tax
32 annually upon all taxable property in the city at the rate
33 that will produce a sum which, when added to the amounts
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1 deducted from the salaries of the employees or otherwise
2 contributed by them, will be sufficient for the requirements
3 of this Article. For the years prior to the year 1950 the tax
4 rate shall be as provided for under "The 1935 Act".
5 Beginning with the year 1950 to and including the year 1969
6 such tax shall be not more than .036% annually of the value,
7 as equalized or assessed by the Department of Revenue, of all
8 taxable property within such city. Beginning with the year
9 1970 and each year thereafter the city shall levy a tax
10 annually at a rate on the dollar of the value, as equalized
11 or assessed by the Department of Revenue of all taxable
12 property within such city that will produce, when extended,
13 not to exceed an amount equal to the total amount of
14 contributions by the employees to the fund made in the
15 calendar year 2 years prior to the year for which the annual
16 applicable tax is levied, multiplied by 1.1 for the years
17 1970, 1971 and 1972; 1.145 for the year 1973; 1.19 for the
18 year 1974; 1.235 for the year 1975; 1.280 for the year 1976;
19 1.325 for the year 1977; and 1.370 for the year 1978 and for
20 each year thereafter.
21 The tax shall be levied and collected in like manner with
22 the general taxes of the city, and shall be exclusive of and
23 in addition to the amount of tax the city is now or may
24 hereafter be authorized to levy for general purposes under
25 any laws which may limit the amount of tax which the city may
26 levy for general purposes. The county clerk of the county in
27 which the city is located, in reducing tax levies under the
28 provisions of any Act concerning the levy and extension of
29 taxes, shall not consider the tax herein provided for as a
30 part of the general tax levy for city purposes, and shall not
31 include the same within any limitation of the per cent of the
32 assessed valuation upon which taxes are required to be
33 extended for such city.
34 Revenues derived from such tax shall be paid to the city
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1 treasurer of the city as collected and held by him for the
2 benefit of the fund.
3 If the payments on account of taxes are insufficient
4 during any year to meet the requirements of this Article, the
5 city may issue tax anticipation warrants against the current
6 tax levy.
7 (b) On or before January 10, annually, the board shall
8 notify the city council of the requirement of this Article
9 that the tax herein provided shall be levied for that current
10 year. The board shall compute the amounts necessary for the
11 purposes of this fund to be credited to the reserves
12 established and maintained as herein provided, and shall make
13 an annual determination of the amount of the required city
14 contributions; and certify the results thereof to the city
15 council.
16 (c) In respect to employees of the city who are
17 transferred to the employment of a park district by virtue of
18 "Exchange of Functions Act of 1957" the corporate authorities
19 of the park district shall annually levy a tax upon all the
20 taxable property in the park district at such rate per cent
21 of the value of such property, as equalized or assessed by
22 the Department of Revenue, as shall be sufficient, when added
23 to the amounts deducted from their salaries and otherwise
24 contributed by them, to provide the benefits to which they
25 and their dependents and beneficiaries are entitled under
26 this Article. The city shall not levy a tax hereunder in
27 respect to such employees.
28 The tax so levied by the park district shall be in
29 addition to and exclusive of all other taxes authorized to be
30 levied by the park district for corporate, annuity fund, or
31 other purposes. The county clerk of the county in which the
32 park district is located, in reducing any tax levied under
33 the provisions of any Act concerning the levy and extension
34 of taxes shall not consider such tax as part of the general
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1 tax levy for park purposes, and shall not include the same in
2 any limitation of the per cent of the assessed valuation upon
3 which taxes are required to be extended for the park
4 district. The proceeds of the tax levied by the park
5 district, upon receipt by the district, shall be immediately
6 paid over to the city treasurer of the city for the uses and
7 purposes of the fund.
8 The various sums to be contributed by the city and
9 allocated for the purposes of this Article and any interest
10 to be contributed by the city, shall be taken from the
11 revenue derived from the tax and no money of such city
12 derived from any source other than the levy and collection of
13 the tax or the sale of tax anticipation warrants in
14 accordance with the provisions of this Article shall be used
15 to provide revenue for this Article, except as expressly
16 provided in this Section.
17 If it is not possible for the city to make contributions
18 for age and service annuity and widow's annuity concurrently
19 with the employee's contributions made for such purposes,
20 such city shall make such contributions as soon as possible
21 and practicable thereafter with interest thereon at the
22 effective rate to the time they shall be made.
23 (d) With respect to employees whose wages are funded as
24 participants under the Comprehensive Employment and Training
25 Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
26 93-567, 88 Stat. 1845), hereinafter referred to as CETA,
27 subsequent to October 1, 1978, and in instances where the
28 board has elected to establish a manpower program reserve,
29 the board shall compute the amounts necessary to be credited
30 to the manpower program reserves established and maintained
31 as herein provided, and shall make a periodic determination
32 of the amount of required contributions from the City to the
33 reserve to be reimbursed by the federal government in
34 accordance with rules and regulations established by the
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1 Secretary of the United States Department of Labor or his
2 designee, and certify the results thereof to the City
3 Council. Any such amounts shall become a credit to the City
4 and will be used to reduce the amount which the City would
5 otherwise contribute during succeeding years for all
6 employees.
7 (e) In lieu of establishing a manpower program reserve
8 with respect to employees whose wages are funded as
9 participants under the Comprehensive Employment and Training
10 Act of 1973, as authorized by subsection (d), the board may
11 elect to establish a special municipality contribution rate
12 for all such employees. If this option is elected, the City
13 shall contribute to the Fund from federal funds provided
14 under the Comprehensive Employment and Training Act program
15 at the special rate so established and such contributions
16 shall become a credit to the City and be used to reduce the
17 amount which the City would otherwise contribute during
18 succeeding years for all employees.
19 (f) In lieu of levying all or a portion of the tax
20 required under this Section in any year, the city may deposit
21 with the city treasurer no later than March 1 of that year
22 for the benefit of the fund, to be held in accordance with
23 this Article, an amount that, together with the taxes levied
24 under this Section for that year, is not less than the amount
25 of the city contributions for that year as certified by the
26 board to the city council. The deposit may be derived from
27 any source legally available for that purpose, including, but
28 not limited to, the proceeds of city borrowings. The making
29 of a deposit shall satisfy fully the requirements of this
30 Section for that year to the extent of the amounts so
31 deposited.
32 (Source: P.A. 81-1536.)
33 (40 ILCS 5/11-190) (from Ch. 108 1/2, par. 11-190)
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1 Sec. 11-190. To invest the reserves. To invest the
2 reserves of the fund in accordance with Sections 1-109,
3 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115 of this Act.
4 Investments made in accordance with Section 1-113 shall be
5 deemed to be prudent. the provisions set forth in Section
6 1-113 of this Act.
7 The retirement board may sell any security held by it at
8 any time it deems it desirable.
9 The board may enter into any agreements and execute any
10 documents that it determines to be necessary to complete any
11 investment transaction.
12 All investments shall be clearly held and accounted for
13 to indicate ownership by the board. The board may direct the
14 registration of securities in its own name or in the name of
15 a nominee created for the express purpose of registration of
16 securities by a savings and loan association or national or
17 State bank or trust company authorized to conduct a trust
18 business in the State of Illinois.
19 Investments shall be carried at cost or at book value in
20 accordance with accounting procedures approved by the board.
21 No adjustments shall be made in investment carrying values
22 for ordinary current market price fluctuations, but reserves
23 may be provided to account for possible losses or unrealized
24 gains, as determined by the board.
25 The book value of investments held by the fund in
26 commingled investment accounts shall be the cost of its units
27 of participation in those commingled accounts as recorded on
28 the books of the board.
29 The board of trustees of any fund established under this
30 Article may not transfer its investment authority, nor
31 transfer the assets of the fund, to any other person or
32 entity for the purpose of consolidating or merging its assets
33 and management with any other pension fund or public
34 investment authority, unless the board resolution authorizing
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1 that such transfer is submitted for approval to the
2 contributors and retirees of the fund at elections held not
3 less than 30 days after the adoption of the such resolution
4 by the board, and the such resolution is approved by a
5 majority of the votes cast on the question in both the
6 contributors election and the retirees election. The
7 election procedures and qualifications governing the election
8 of trustees shall govern the submission of resolutions for
9 approval under this paragraph, insofar as they may be made
10 applicable.
11 (Source: P.A. 83-970.)
12 (40 ILCS 5/11-217) (from Ch. 108 1/2, par. 11-217)
13 Sec. 11-217. Basis of annual salary. For the purpose of
14 this Article, the annual salary of an employee whose salary
15 or wage wages is appropriated, fixed, or arranged in the
16 annual appropriation ordinance upon other than an annual
17 basis shall be determined as follows:
18 (a) If the employee is paid on a monthly basis, the
19 annual salary is:--Weekly basis: 12 times the such monthly
20 salary. If the employee is paid on a weekly basis, the annual
21 salary is; 52 times the such weekly salary.; hereby
22 established as the norm.
23 "Monthly salary" means the amount of compensation or
24 salary appropriated, and payable for a normal and regular
25 month's work in the employee's position in the service., and
26 "Weekly salary" means the such amount of compensation or
27 salary appropriated and payable for a normal and regular
28 week's work in the employee's position in the service., and
29 If the work is on a regularly scheduled regular schedule part
30 time basis, then "monthly salary" and "weekly salary" refer,
31 respectively, to the such part time monthly or weekly salary.
32 If the appropriation for the position is for a shorter
33 period than 12 months a year, or 52 weeks a year if on a
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1 weekly basis, or the employee is in a class, grade, or
2 category in which the employee his assignment calls for or he
3 normally works for fewer a lesser period than 12 months or 52
4 weeks a year, then the such basis shall be adjusted downward
5 according and to the extent that the appropriated or
6 customary work such period is less than the normal 12 months
7 or 52 weeks of service in a year.
8 Compensation for overtime, at regular or overtime rates,
9 that is paid in addition to the appropriated regular and
10 normal monthly or weekly salary shall not be considered.
11 (b) If the employee is paid on a daily basis, the annual
12 salary is: Hourly basis: 260 times the such daily wage. If
13 the employee is paid on an hourly basis, the annual salary
14 is; 2080 times the such hourly wage.; hereby established as
15 the norm.
16 The norm is based on a 12-month per year, 5-day work week
17 of 8 hours per day and 40 hours per week, with consideration
18 given only to time compensated for at the straight time rate
19 of compensation or wage. The norm shall be increased
20 (subject to a maximum of 300 days or 2400 hours per year,) or
21 decreased for, as respects an employee, according and to the
22 extent that the normal and established work period, at the
23 straight time compensation or wage, for the position held by
24 him in the class, grade, or category in which the employee he
25 is assigned, is for a greater or lesser number of months,
26 weeks, days, or hours than the period on which the
27 established norm is based.
28 "Daily wage", and "hourly wage", mean, respectively, the
29 normal, regular, or basic straight time rate of compensation
30 or wage appropriated and payable for a normal and regular
31 day's work, or hour's work, in the employee's position in the
32 service.
33 Any time worked in excess of the norm (or the increased
34 or decreased norm, whichever is applicable) that, and
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1 compensation, salary, or wage attached to or paid for such
2 time, which is compensated for at overtime, premium, or other
3 than regular or basic straight time rates, shall not be
4 considered as time worked, and the compensation for that work
5 shall not be considered or as salary or wage. Such time and
6 compensation shall in every case and for all purposes be
7 considered overtime, and shall be excluded for all purposes
8 under this Section and Article. However, the straight time
9 portion of compensation or wage, for time worked on holidays
10 that which fall within an employee's established norm, shall
11 be included for all purposes under this Section and Article.
12 (c) For minimum annuity purposes under Section 11-134,
13 where a salary rate change occurs during the year, it shall
14 be considered that the annual salary wage for that any year
15 is (1) the annual equivalent of the at such monthly, weekly,
16 daily, or hourly salary or wage rate that as was applicable
17 for the greater number of months, weeks, days, or hours
18 (whichever is applicable), respectively, in the each year
19 under consideration, or (2) the annual equivalent of the
20 average salary or wage rate in effect for the employee during
21 the year, whichever is greater. The average salary or wage
22 rate shall be calculated by multiplying each salary or wage
23 rate in effect for the employee during the year by the number
24 of months, weeks, days, or hours (whichever is applicable)
25 during which that rate was in effect, and dividing the sum of
26 the resulting products by the total number of months, weeks,
27 days, or hours (whichever is applicable) worked by the
28 employee during the year.
29 (d) The changes to subsection (c) made by this
30 amendatory Act of 1997 apply to persons withdrawing from
31 service on or after July 1, 1990 and for each such person are
32 intended to be retroactive to the date upon which the
33 affected annuity began. The Fund shall recompute the
34 affected annuity and shall pay the additional amount due for
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1 the period before the increase resulting from this amendatory
2 Act in a lump sum, without interest.
3 (Source: Laws 1963, p. 2318.)
4 (40 ILCS 5/11-221) (from Ch. 108 1/2, par. 11-221)
5 Sec. 11-221. Employees under Act.
6 (a) Any contributor becoming employed on or after the
7 effective date (except a participant in any other annuity,
8 retirement or pension fund in operation in such city) shall
9 be subject to the provisions of this Article. Any such
10 contributor shall continue as a contributor to this fund, in
11 the event that he shall be employed by an employer in any
12 capacity, other than as a member of the police department, or
13 as a member of the fire department or as a public school
14 teacher.
15 (b) Beginning August 1, 1949, any contributor shall have
16 the right to contribute for service rendered an employer or
17 retirement board after July 1, 1935, by virtue of appointment
18 to a position which did not include him under the provisions
19 of "The 1935 Act". Such contributions shall be the amounts he
20 would have contributed for annuity purposes had deductions
21 from his salary been made for the purposes of the fund in
22 accordance with the provisions of "The 1935 Act" relating to
23 future entrants and present employees during the period such
24 service was rendered.
25 Periods of service for the aforesaid employee shall
26 include service in the armed forces of the United States if
27 he left the employment of an employer to enter the armed
28 forces and returned to the employ of the employer within 90
29 days after his discharge from such armed forces, and if such
30 employer has not made such payment on his behalf. Those
31 periods for which he has received and retains credit in some
32 other annuity or pension fund in operation in such city for
33 the benefit of employees of an employer shall not be
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1 included. Upon making such payments such employee shall be
2 credited with concurrent city contributions at the rates in
3 effect for contributors during the period of time such
4 service was rendered. Such payments and concurrent city
5 contributions shall be made with interest at the effective
6 rate and shall together with all other amounts contributed by
7 or for such employee for all annuity purposes, be considered
8 in computing the annuity or annuities to which such employee
9 or his widow shall have a right. Any such period of service
10 for which payment is made by such employee shall be counted
11 as a period of service for annuity purposes under this
12 Article.
13 Until the effective date of this amendatory Act of 1991,
14 in order to be credited for a minimum annuity, all such
15 payments by a contributor must be made in full while such
16 contributor is still in the service; if payment is not made
17 in full while such contributor is in service, any payments
18 made shall be refunded to him when he withdraws from the
19 service or to his widow in the event of his death or if no
20 widow in accordance with the other refund provisions of this
21 Article. Such employee may elect to have such partial
22 payments together with the concurrent city contributions and
23 interest, credited and applied for age and service and
24 widow's annuity, for himself and his wife, on the assumption
25 that the payments made shall apply to his earliest service.
26 In the event of his death while in the service, his widow may
27 elect to have such payments and related city contributions
28 and interest, credited for widow's annuity, to the extent
29 that they do not increase her annuity above that which she
30 could have received if such amounts were included, and an
31 annuity were fixed for her on the assumption that her
32 deceased husband had continued in service at the rate of his
33 final salary until he became 65 years of age.
34 Beginning on the effective date of this amendatory Act of
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1 1991, an employee who is still in service may elect to
2 establish credit under this Section for only a fraction of
3 the service that he or she is eligible to establish under
4 this Section. In such cases, the credit established shall be
5 deemed to relate to the earliest service for which credit may
6 be established. In no event shall such credit be granted
7 until the corresponding employee contributions have been
8 paid.
9 Beginning on the effective date of this amendatory Act of
10 1997, any employee who is in service, or within 90 days after
11 withdrawing from service, or who is an active contributor to
12 a participating system as defined in the Retirement Systems
13 Reciprocal Act, may make payments and establish credit under
14 this Section.
15 (c) Any employee, who shall become a participant in any
16 other annuity, retirement or pension fund now or hereafter in
17 operation in such city for the benefit of employees of an
18 employer, shall have the right, notwithstanding other
19 provisions of this Article relating to participation in other
20 funds, to elect to receive a refund or an annuity from this
21 fund in the same manner as he would if he had then resigned
22 from his position in the service and had not become a
23 participant in any such other fund. No credit shall be
24 allowed for any period of service as a participant in this
25 fund for which he shall receive credit in such other fund. No
26 annuity payments shall be paid to such participant during the
27 time he holds a position in the service which entitles him to
28 participation in such other fund.
29 (Source: P.A. 86-1488.)
30 (40 ILCS 5/11-221.3 new)
31 Sec. 11-221.3. Payments and rollovers.
32 (a) The Board may adopt rules prescribing the manner of
33 repaying refunds and purchasing any other credits permitted
HB0015 Enrolled -33- LRB9000177EGfg
1 under this Article. The rules may prescribe the manner of
2 calculating interest when payments or repayments are made in
3 installments.
4 (b) Rollover contributions from other retirement plans
5 qualified under the Internal Revenue Code of 1986 may be used
6 to purchase any optional credit or repay any refund permitted
7 under this Article.
8 Section 10. The State Mandates Act is amended by adding
9 Section 8.21 as follows:
10 (30 ILCS 805/8.21 new)
11 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
12 and 8 of this Act, no reimbursement by the State is required
13 for the implementation of any mandate created by this
14 amendatory Act of 1997.
15 Section 99. Effective date. This Act takes effect upon
16 becoming law.
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1 INDEX
2 Statutes amended in order of appearance
3 40 ILCS 5/8-125 from Ch. 108 1/2, par. 8-125
4 40 ILCS 5/8-139 from Ch. 108 1/2, par. 8-139
5 40 ILCS 5/8-158 from Ch. 108 1/2, par. 8-158
6 40 ILCS 5/8-173 from Ch. 108 1/2, par. 8-173
7 40 ILCS 5/8-201 from Ch. 108 1/2, par. 8-201
8 40 ILCS 5/8-230 from Ch. 108 1/2, par. 8-230
9 40 ILCS 5/8-230.6 new
10 40 ILCS 5/8-233 from Ch. 108 1/2, par. 8-233
11 40 ILCS 5/11-110 from Ch. 108 1/2, par. 11-110
12 40 ILCS 5/11-124 from Ch. 108 1/2, par. 11-124
13 40 ILCS 5/11-125.8 new
14 40 ILCS 5/11-134.2 from Ch. 108 1/2, par. 11-134.2
15 40 ILCS 5/11-153 from Ch. 108 1/2, par. 11-153
16 40 ILCS 5/11-169 from Ch. 108 1/2, par. 11-169
17 40 ILCS 5/11-190 from Ch. 108 1/2, par. 11-190
18 40 ILCS 5/11-217 from Ch. 108 1/2, par. 11-217
19 40 ILCS 5/11-221 from Ch. 108 1/2, par. 11-221
20 40 ILCS 5/11-221.3 new
21 30 ILCS 805/8.21 new