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90_HB2047eng
40 ILCS 5/9-101 from Ch. 108 1/2, par. 9-101
Amends the Cook County Article of the Pension Code.
Changes the population limit for establishing a pension fund
under that Article from 500,000 to 3,000,000. Effective
immediately.
LRB9004280EGfg
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1 AN ACT in relation to public employee pensions.
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
5 changing Sections 3-110.6, 4-109.1, 4-115.1, 5-167.5,
6 6-164.2, 7-139.8, 7-141.1, 8-138, 8-150.1, 8-159, 8-164.1,
7 9-101, 9-133, 9-133.1, 9-179.3, 11-134, 11-145.1, 11-154,
8 11-160.1, 14-104, 14-110, 15-157, 15-157.1, 16-127, and
9 16-141 and adding Sections 9-120.1, 9-146.2 and 14-104.10 as
10 follows:
11 (40 ILCS 5/3-110.6) (from Ch. 108 1/2, par. 3-110.6)
12 Sec. 3-110.6. Transfer to Article 14 System.
13 (a) Any active member of the State Employees' Retirement
14 System who is an investigator for the Office of the State's
15 Attorneys Appellate Prosecutor or a controlled substance
16 inspector may apply for transfer of his or her creditable
17 service accumulated in any police pension fund under this
18 Article to the State Employees' Retirement System in
19 accordance with Section 14-110. The creditable service shall
20 be transferred only upon payment by the police pension fund
21 to the State Employees' Retirement System of an amount equal
22 to:
23 (1) the amounts accumulated to the credit of the
24 applicant on the books of the fund on the date of
25 transfer; and
26 (2) employer contributions in an amount equal to
27 the amount determined under subparagraph (1); and
28 (3) any interest paid by the applicant in order to
29 reinstate service.
30 Participation in the police pension fund shall terminate on
31 the date of transfer.
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1 (b) Any such investigator or inspector may reinstate
2 service which was terminated by receipt of a refund, by
3 paying to the police pension fund the amount of the refund
4 with interest thereon at the rate of 6% per year, compounded
5 annually, from the date of refund to the date of payment.
6 (Source: P.A. 87-1265.)
7 (40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
8 Sec. 4-109.1. Increase in pension.
9 (a) Except as provided in subsection (e), the monthly
10 pension of a firefighter who retires after July 1, 1971 and
11 prior to January 1, 1986, shall, upon either the first of the
12 month following the first anniversary of the date of
13 retirement if 60 years of age or over at retirement date, or
14 upon the first day of the month following attainment of age
15 60 if it occurs after the first anniversary of retirement, be
16 increased by 2% of the originally granted monthly pension and
17 by an additional 2% in each January thereafter. Effective
18 January 1976, the rate of the annual increase shall be 3% of
19 the originally granted monthly pension.
20 (b) The monthly pension of a firefighter who retired
21 from service with 20 or more years of service, on or before
22 July 1, 1971, shall be increased, in January of the year
23 following the year of attaining age 65 or in January 1972, if
24 then over age 65, by 2% of the originally granted monthly
25 pension, for each year the firefighter received pension
26 payments. In each January thereafter, he or she shall
27 receive an additional increase of 2% of the original monthly
28 pension. Effective January 1976, the rate of the annual
29 increase shall be 3%.
30 (c) The monthly pension of a firefighter who is
31 receiving a disability pension under this Article shall be
32 increased, in January of the year following the year the
33 firefighter attains age 60, or in January 1974, if then over
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1 age 60, by 2% of the originally granted monthly pension for
2 each year he or she received pension payments. In each
3 January thereafter, the firefighter shall receive an
4 additional increase of 2% of the original monthly pension.
5 Effective January 1976, the rate of the annual increase shall
6 be 3%.
7 (c-1) On January 1, 1998, every child's disability
8 benefit payable on that date under Section 4-110 or 4-110.1
9 shall be increased by an amount equal to 1/12 of 3% of the
10 amount of the benefit, multiplied by the number of months for
11 which the benefit has been payable. On each January 1
12 thereafter, every child's disability benefit payable under
13 Section 4-110 or 4-110.1 shall be increased by 3% of the
14 amount of the benefit then being paid, including any previous
15 increases received under this Article. These increases are
16 not subject to any limitation on the maximum benefit amount
17 included in Section 4-110 or 4-110.1.
18 (d) The monthly pension of a firefighter who retires
19 after January 1, 1986, shall, upon either the first of the
20 month following the first anniversary of the date of
21 retirement if 55 years of age or over at retirement date, or
22 upon the first day of the month following attainment of age
23 55 if it occurs after the first anniversary of retirement, be
24 increased by 3% of the originally granted monthly pension for
25 each full year that has elapsed since the pension began, and
26 by an additional 3% in each January thereafter.
27 (e) Notwithstanding the provisions of subsection (a),
28 upon the first day of the month following (1) the first
29 anniversary of the date of retirement, or (2) the attainment
30 of age 55, or (3) July 1, 1987, whichever occurs latest, the
31 monthly pension of a firefighter who retired on or after
32 January 1, 1977 and on or before January 1, 1986 and did not
33 receive an increase under subsection (a) before July 1, 1987,
34 shall be increased by 3% of the originally granted monthly
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1 pension for each full year that has elapsed since the pension
2 began, and by an additional 3% in each January thereafter.
3 The increases provided under this subsection are in lieu of
4 the increases provided in subsection (a).
5 (Source: P.A. 85-941.)
6 (40 ILCS 5/4-115.1) (from Ch. 108 1/2, par. 4-115.1)
7 Sec. 4-115.1. Eligibility of children. Dependent
8 benefits shall be paid to each natural child of a deceased
9 firefighter, and to each child legally adopted before the
10 firefighter attains age 50, until the child's attainment of
11 age 18, or marriage, whichever occurs first, whether or not
12 the death of the firefighter occurred prior to November 21,
13 1975.
14 Benefits payable to or on account of a child under this
15 Article shall not be reduced or terminated by reason of the
16 child's adoption by a third party after the firefighter's
17 death.
18 Benefits payable to or on account of a child under this
19 Article to children shall not be reduced or terminated by
20 reason of the child's attainment of age 18 if he or she is
21 then dependent by reason of a physical or mental disability
22 but shall continue to be paid as long as such dependency
23 continues. Individuals over the age of 18 and adjudged as a
24 disabled person pursuant to Article XIa of the Probate Act of
25 1975, except for persons receiving benefits under Article III
26 of the Illinois Public Aid Code, shall be eligible to receive
27 benefits under this Act.
28 (Source: P.A. 83-1440.)
29 (40 ILCS 5/5-167.5) (from Ch. 108 1/2, par. 5-167.5)
30 Sec. 5-167.5. Group health benefit.
31 (a) For the purposes of this Section: (1) "annuitant"
32 means a person receiving an age and service annuity, a prior
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1 service annuity, a widow's annuity, a widow's prior service
2 annuity, or a minimum annuity on or after January 1, 1988,
3 under Article 5, 6, 8 or 11, by reason of previous employment
4 by the City of Chicago (hereinafter, in this Section, "the
5 city"); (2) "Medicare Plan annuitant" means an annuitant
6 described in item (1) who is eligible for Medicare benefits;
7 and (3) "non-Medicare Plan annuitant" means an annuitant
8 described in item (1) who is not eligible for Medicare
9 benefits.
10 (b) The city shall continue to offer group health
11 benefits to annuitants and their eligible dependents through
12 June 30, 2002. The same basic city health care plan
13 available as of June 30, 1988 (hereinafter called the basic
14 city plan) shall cease to be a plan offered by the city,
15 except as specified in subparagraphs (4) and (5) below, and
16 shall be closed to new enrollment or transfer of coverage for
17 any non-Medicare Plan annuitant as of the effective date of
18 this amendatory Act of 1997. The city shall offer
19 non-Medicare Plan annuitants and their eligible dependents
20 the option of enrolling in its Annuitant Preferred Provider
21 Plan, and may offer additional plans for any annuitant. The
22 city may amend, modify, or terminate any of its additional
23 plans at its sole discretion. If the city offers more than
24 one annuitant plan, the city shall allow annuitants to
25 convert coverage from one city annuitant plan to another,
26 except the basic city plan, during times designated by the
27 city, which periods of time shall occur at least annually.
28 For the period dating from the effective date of this
29 amendatory Act of 1997 through June 30, 2002, monthly premium
30 rates may be increased for annuitants during the time of
31 their participation in non-Medicare plans, except as provided
32 in subparagraphs (1) through (4) of this subsection.
33 (1) For non-Medicare Plan annuitants who retired
34 prior to January 1, 1988, the annuitant's share of
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1 monthly premium for non-Medicare Plan coverage only shall
2 not exceed the highest premium rate chargeable under any
3 city non-Medicare Plan annuitant coverage as of December
4 1, 1996.
5 (2) For non-Medicare Plan annuitants who retire on
6 or after January 1, 1988, the annuitant's share of
7 monthly premium for non-Medicare Plan coverage only shall
8 be the rate in effect on December 1, 1996, with monthly
9 premium increases to take effect no sooner than April 1,
10 1998 at the lower of (i) the premium rate determined
11 pursuant to subsection (g) or (ii) 10% of the immediately
12 previous month's rate for similar coverage.
13 (3) In no event shall any non-Medicare Plan
14 annuitant's share of monthly premium for non-Medicare
15 Plan coverage exceed 10% of the annuitant's monthly
16 annuity.
17 (4) Non-Medicare Plan annuitants who are enrolled
18 in the basic city plan as of July 1, 1998 may remain in
19 the basic city plan, if they so choose, on the condition
20 that they are not entitled to the caps on rates set forth
21 in subparagraphs (1) through (3), and their premium rate
22 shall be the rate determined in accordance with
23 subsections (c) and (g).
24 (5) Medicare Plan annuitants who are currently
25 enrolled in the basic city plan for Medicare eligible
26 annuitants may remain in that plan, if they so choose,
27 through June 30, 2002. Annuitants shall not be allowed
28 to enroll in or transfer into the basic city plan for
29 Medicare eligible annuitants on or after July 1, 1999.
30 The city shall continue to offer annuitants a
31 supplemental Medicare Plan for Medicare eligible
32 annuitants through June 30, 2002, and the city may offer
33 additional plans to Medicare eligible annuitants in its
34 sole discretion. All Medicare Plan annuitant monthly
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1 rates shall be determined in accordance with subsections
2 (c) and (g).
3 (c) Effective the date the initial increased annuitant
4 payments pursuant to subsection (g) take effect, The city
5 shall pay 50% of the aggregated costs of the claims or
6 premiums, whichever is applicable, as determined in
7 accordance with subsection (g), of annuitants and their
8 dependents under all health care plans offered by the city.
9 The city may reduce its obligation by application of price
10 reductions obtained as a result of financial arrangements
11 with providers or plan administrators. The claims or
12 premiums of all annuitants and their dependents under all of
13 the plans offered by the city shall be aggregated for the
14 purpose of calculating the city's payment required under this
15 subsection, as well as for the setting of rates of payment
16 for annuitants as required under subsection (g).
17 (d) From January 1, 1988 until December 31, 1992, the
18 board shall pay to the city on behalf of each of the board's
19 annuitants who chooses to participate in any of the city's
20 plans the following amounts: up to a maximum of $65 per month
21 for each such annuitant who is not qualified to receive
22 medicare benefits, and up to a maximum of $35 per month for
23 each such annuitant who is qualified to receive medicare
24 benefits. From January 1, 1993 until June 30, 2002 December
25 31, 1997, the board shall pay to the city on behalf of each
26 of the board's annuitants who chooses to participate in any
27 of the city's plans the following amounts: up to a maximum of
28 $75 per month for each such annuitant who is not qualified to
29 receive medicare benefits, and up to a maximum of $45 per
30 month for each such annuitant who is qualified to receive
31 medicare benefits.
32 For the period January 1, 1988 through the effective date
33 of this amendatory Act of 1989, payments under this Section
34 shall be reduced by the amounts paid by or on behalf of the
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1 board's annuitants covered during that period.
2 The payments described in this subsection shall be paid
3 from the tax levy authorized under Section 5-168; such
4 amounts shall be credited to the reserve for group hospital
5 care and group medical and surgical plan benefits, and all
6 payments to the city required under this subsection shall be
7 charged against it.
8 (e) The city's obligations under subsections (b) and (c)
9 shall terminate on June 30, 2002 December 31, 1997, except
10 with regard to covered expenses incurred but not paid as of
11 that date. This subsection shall not affect other
12 obligations that may be imposed by law.
13 (f) The group coverage plans described in this Section
14 are not and shall not be construed to be pension or
15 retirement benefits for purposes of Section 5 of Article XIII
16 of the Illinois Constitution of 1970.
17 (g) For each annuitant plan offered by the city, the
18 aggregate cost of claims, as reflected in the claim records
19 of the plan administrator, and premiums for each calendar
20 year from 1989 through 1997 of all annuitants and dependents
21 covered by the city's group health care plans shall be
22 estimated by the city, based upon a written determination by
23 a qualified independent actuary to be appointed and paid by
24 the city and the board. If the such estimated annual cost
25 for each annuitant plan offered by the city is more than the
26 estimated amount to be contributed by the city for that plan
27 pursuant to subsections (b) and (c) during that year plus the
28 estimated amounts to be paid pursuant to subsection (d) and
29 by the other pension boards on behalf of other participating
30 annuitants, the difference shall be paid by all participating
31 annuitants participating in the plan, except as provided in
32 subsection (b). The city, based upon the determination of
33 the independent actuary, shall set the monthly amounts to be
34 paid by the participating annuitants. The initial
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1 determination of such payments shall be prospective only and
2 shall be based upon the estimated costs for the balance of
3 the year. The board may deduct the amounts to be paid by its
4 annuitants from the participating annuitants' monthly
5 annuities.
6 If it is determined from the city's annual audit, or from
7 audited experience data, that the total amount paid by all
8 participating annuitants was more or less than the difference
9 between (1) the cost of providing the group health care
10 plans, and (2) the sum of the amount to be paid by the city
11 as determined under subsection (c) and the amounts paid by
12 all the pension boards, then the independent actuary and the
13 city shall account for the excess or shortfall in the next
14 year's payments by annuitants, except as provided in
15 subsection (b).
16 (h) An annuitant may elect to terminate coverage in a
17 plan at the end of any month any time, which election shall
18 terminate the annuitant's obligation to contribute toward
19 payment of the excess described in subsection (g).
20 (i) The city shall advise the board of all proposed
21 premium increases for health care at least 75 days prior to
22 the effective date of the change, and any increase shall be
23 prospective only.
24 (Source: P.A. 86-273.)
25 (40 ILCS 5/6-164.2) (from Ch. 108 1/2, par. 6-164.2)
26 Sec. 6-164.2. Group health benefit.
27 (a) For the purposes of this Section: (1) "annuitant"
28 means a person receiving an age and service annuity, a prior
29 service annuity, a widow's annuity, a widow's prior service
30 annuity, or a minimum annuity on or after January 1, 1988,
31 under Article 5, 6, 8 or 11, by reason of previous employment
32 by the City of Chicago (hereinafter, in this Section, "the
33 city"); (2) "Medicare Plan annuitant" means an annuitant
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1 described in item (1) who is eligible for Medicare benefits;
2 and (3) "non-Medicare Plan annuitant" means an annuitant
3 described in item (1) who is not eligible for Medicare
4 benefits.
5 (b) The city shall continue to offer group health
6 benefits to annuitants and their eligible dependents through
7 June 30, 2002. The same basic city health care plan
8 available as of June 30, 1988 (hereinafter called the basic
9 city plan) shall cease to be a plan offered by the city,
10 except as specified in subparagraphs (4) and (5) below, and
11 shall be closed to new enrollment or transfer of coverage for
12 any non-Medicare Plan annuitant as of the effective date of
13 this amendatory Act of 1997. The city shall offer
14 non-Medicare Plan annuitants and their eligible dependents
15 the option of enrolling in its Annuitant Preferred Provider
16 Plan, and may offer additional plans for any annuitant. The
17 city may amend, modify, or terminate any of its additional
18 plans at its sole discretion. If the city offers more than
19 one annuitant plan, the city shall allow annuitants to
20 convert coverage from one city annuitant plan to another,
21 except the basic city plan, during times designated by the
22 city, which periods of time shall occur at least annually.
23 For the period dating from the effective date of this
24 amendatory Act of 1997 through June 30, 2002, monthly
25 premium rates may be increased for annuitants during the time
26 of their participation in non-Medicare plans, except as
27 provided in subparagraphs (1) through (4) of this subsection.
28 (1) For non-Medicare Plan annuitants who retired
29 prior to January 1, 1988, the annuitant's share of
30 monthly premium for non-Medicare Plan coverage only shall
31 not exceed the highest premium rate chargeable under any
32 city non-Medicare Plan annuitant coverage as of December
33 1, 1996.
34 (2) For non-Medicare Plan annuitants who retire on
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1 or after January 1, 1988, the annuitant's share of
2 monthly premium for non-Medicare Plan coverage only shall
3 be the rate in effect on December 1, 1996, with monthly
4 premium increases to take effect no sooner than April 1,
5 1998 at the lower of (i) the premium rate determined
6 pursuant to subsection (g) or (ii) 10% of the immediately
7 previous month's rate for similar coverage.
8 (3) In no event shall any non-Medicare Plan
9 annuitant's share of monthly premium for non-Medicare
10 Plan coverage exceed 10% of the annuitant's monthly
11 annuity.
12 (4) Non-Medicare Plan annuitants who are enrolled
13 in the basic city plan as of July 1, 1998 may remain in
14 the basic city plan, if they so choose, on the condition
15 that they are not entitled to the caps on rates set forth
16 in subparagraphs (1) through (3), and their premium rate
17 shall be the rate determined in accordance with
18 subsections (c) and (g).
19 (5) Medicare Plan annuitants who are currently
20 enrolled in the basic city plan for Medicare eligible
21 annuitants may remain in that plan, if they so choose,
22 through June 30, 2002. Annuitants shall not be allowed
23 to enroll in or transfer into the basic city plan for
24 Medicare eligible annuitants on or after July 1, 1999.
25 The city shall continue to offer annuitants a
26 supplemental Medicare Plan for Medicare eligible
27 annuitants through June 30, 2002, and the city may offer
28 additional plans to Medicare eligible annuitants in its
29 sole discretion. All Medicare Plan annuitant monthly
30 rates shall be determined in accordance with subsections
31 (c) and (g).
32 (c) Effective the date the initial increased annuitant
33 payments pursuant to subsection (g) take effect, The city
34 shall pay 50% of the aggregated costs of the claims or
HB2047 Engrossed -12- LRB9004280EGfg
1 premiums, whichever is applicable, as determined in
2 accordance with subsection (g), of annuitants and their
3 dependents under all health care plans offered by the city.
4 The city may reduce its obligation by application of price
5 reductions obtained as a result of financial arrangements
6 with providers or plan administrators. The claims or
7 premiums of all annuitants and their dependents under all of
8 the plans offered by the city shall be aggregated for the
9 purpose of calculating the city's payment required under this
10 subsection, as well as for the setting of rates of payment
11 for annuitants as required under subsection (g).
12 (d) From January 1, 1988 until December 31, 1992, the
13 board shall pay to the city on behalf of each of the board's
14 annuitants who chooses to participate in any of the city's
15 plans the following amounts: up to a maximum of $65 per month
16 for each such annuitant who is not qualified to receive
17 medicare benefits, and up to a maximum of $35 per month for
18 each such annuitant who is qualified to receive medicare
19 benefits. From January 1, 1993 until June 30, 2002 December
20 31, 1997, the board shall pay to the city on behalf of each
21 of the board's annuitants who chooses to participate in any
22 of the city's plans the following amounts: up to a maximum of
23 $75 per month for each such annuitant who is not qualified to
24 receive medicare benefits, and up to a maximum of $45 per
25 month for each such annuitant who is qualified to receive
26 medicare benefits.
27 For the period January 1, 1988 through the effective date
28 of this amendatory Act of 1989, payments under this Section
29 shall be reduced by the amounts paid by or on behalf of the
30 board's annuitants covered during that period.
31 The payments described in this subsection shall be paid
32 from the tax levy authorized under Section 6-165; such
33 amounts shall be credited to the reserve for group hospital
34 care and group medical and surgical plan benefits, and all
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1 payments to the city required under this subsection shall be
2 charged against it.
3 (e) The city's obligations under subsections (b) and (c)
4 shall terminate on June 30, 2002 December 31, 1997, except
5 with regard to covered expenses incurred but not paid as of
6 that date. This subsection shall not affect other
7 obligations that may be imposed by law.
8 (f) The group coverage plans described in this Section
9 are not and shall not be construed to be pension or
10 retirement benefits for purposes of Section 5 of Article XIII
11 of the Illinois Constitution of 1970.
12 (g) For each annuitant plan offered by the city, the
13 aggregate cost of claims, as reflected in the claim records
14 of the plan administrator, and premiums for each calendar
15 year from 1989 through 1997 of all annuitants and dependents
16 covered by the city's group health care plans shall be
17 estimated by the city, based upon a written determination by
18 a qualified independent actuary to be appointed and paid by
19 the city and the board. If the such estimated annual cost
20 for each annuitant plan offered by the city is more than the
21 estimated amount to be contributed by the city for that plan
22 pursuant to subsections (b) and (c) during that year plus the
23 estimated amounts to be paid pursuant to subsection (d) and
24 by the other pension boards on behalf of other participating
25 annuitants, the difference shall be paid by all participating
26 annuitants participating in the plan, except as provided in
27 subsection (b). The city, based upon the determination of
28 the independent actuary, shall set the monthly amounts to be
29 paid by the participating annuitants. The initial
30 determination of such payments shall be prospective only and
31 shall be based upon the estimated costs for the balance of
32 the year. The board may deduct the amounts to be paid by its
33 annuitants from the participating annuitants' monthly
34 annuities.
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1 If it is determined from the city's annual audit, or from
2 audited experience data, that the total amount paid by all
3 participating annuitants was more or less than the difference
4 between (1) the cost of providing the group health care
5 plans, and (2) the sum of the amount to be paid by the city
6 as determined under subsection (c) and the amounts paid by
7 all the pension boards, then the independent actuary and the
8 city shall account for the excess or shortfall in the next
9 year's payments by annuitants, except as provided in
10 subsection (b).
11 (h) An annuitant may elect to terminate coverage in a
12 plan at the end of any month any time, which election shall
13 terminate the annuitant's obligation to contribute toward
14 payment of the excess described in subsection (g).
15 (i) The city shall advise the board of all proposed
16 premium increases for health care at least 75 days prior to
17 the effective date of the change, and any increase shall be
18 prospective only.
19 (Source: P.A. 86-273.)
20 (40 ILCS 5/7-139.8) (from Ch. 108 1/2, par. 7-139.8)
21 Sec. 7-139.8. Transfer to Article 14 System.
22 (a) Any active member of the State Employees' Retirement
23 System who is an investigator for the Office of the State's
24 Attorneys Appellate Prosecutor or a controlled substance
25 inspector may apply for transfer of his or her credits and
26 creditable service accumulated in this Fund for service as a
27 sheriff's law enforcement employee to the State Employees'
28 Retirement System in accordance with Section 14-110. The
29 creditable service shall be transferred only upon payment by
30 this Fund to the State Employees' Retirement System of an
31 amount equal to:
32 (1) the amounts accumulated to the credit of the
33 applicant for service as a sheriff's law enforcement
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1 employee, including interest; and
2 (2) municipality credits based on such service,
3 including interest; and
4 (3) any interest paid by the applicant to reinstate
5 such service.
6 Participation in this Fund as to any credits transferred
7 under this Section shall terminate on the date of transfer.
8 (b) Any such investigator or inspector may reinstate
9 credits and creditable service terminated upon receipt of a
10 separation benefit, by paying to the Fund the amount of the
11 separation benefit plus interest thereon at the rate of 6%
12 per year to the date of payment.
13 (Source: P.A. 87-1265.)
14 (40 ILCS 5/7-141.1)
15 Sec. 7-141.1. Early retirement incentive.
16 (a) The General Assembly finds and declares that:
17 (1) Units of local government across the State have
18 been functioning under a financial crisis.
19 (2) This financial crisis is expected to continue.
20 (3) Units of local government must depend on
21 additional sources of revenue and, when those sources are
22 not forthcoming, must establish cost-saving programs.
23 (4) An early retirement incentive designed
24 specifically to target highly-paid senior employees could
25 result in significant annual cost savings.
26 (5) The early retirement incentive should be made
27 available only to those units of local government that
28 determine that an early retirement incentive is in their
29 best interest.
30 (6) A unit of local government adopting a program
31 of early retirement incentives under this Section is
32 encouraged to implement personnel procedures to prohibit,
33 for at least 5 years, the rehiring (whether on payroll or
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1 by independent contract) of employees who receive early
2 retirement incentives.
3 (7) A unit of local government adopting a program
4 of early retirement incentives under this Section is also
5 encouraged to replace as few of the participating
6 employees as possible and to hire replacement employees
7 for salaries totaling no more than 80% of the total
8 salaries formerly paid to the employees who participate
9 in the early retirement program.
10 It is the primary purpose of this Section to encourage
11 units of local government that can realize true cost savings,
12 or have determined that an early retirement program is in
13 their best interest, to implement an early retirement
14 program.
15 (b) Until the effective date of this amendatory Act of
16 1997, this Section does not apply to any employer that is a
17 city, village, or incorporated town, nor to the employees of
18 any such employer. Beginning on the effective date of this
19 amendatory Act of 1997, any employer under this Article,
20 including an employer that is a city, village, or
21 incorporated town, may establish an early retirement
22 incentive program for its employees under this Section. The
23 decision of a city, village, or incorporated town to consider
24 or establish an early retirement program is at the sole
25 discretion of that city, village, or incorporated town, and
26 nothing in this amendatory Act of 1997 limits or otherwise
27 diminishes this discretion. Nothing contained in this
28 Section shall be construed to require a city, village, or
29 incorporated town to establish an early retirement program
30 and no city, village, or incorporated town may be compelled
31 to implement such a program. All references in this Section
32 to an "employer" or "unit of local government" are
33 specifically intended to exclude every employer that is a
34 city, village, or incorporated town.
HB2047 Engrossed -17- LRB9004280EGfg
1 The benefits provided in this Section are available only
2 to members employed by a participating employer that has
3 filed with the Board of the Fund a resolution or ordinance
4 expressly providing for the creation of an early retirement
5 incentive program under this Section for its employees and
6 specifying the effective date of the early retirement
7 incentive program. Subject to the limitation in subsection
8 (h), an employer may adopt a resolution or ordinance
9 providing a program of early retirement incentives under this
10 Section at any time, but no more often than once in 5 years.
11 The resolution or ordinance shall be in substantially the
12 following form:
13 RESOLUTION (ORDINANCE) NO. ....
14 A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
15 RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
16 IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
17 WHEREAS, Section 7-141.1 of the Illinois Pension Code
18 provides that a participating employer may elect to adopt an
19 early retirement incentive program offered by the Illinois
20 Municipal Retirement Fund by adopting a resolution or
21 ordinance; and
22 WHEREAS, The goal of adopting an early retirement program
23 is to realize a substantial savings in personnel costs by
24 offering early retirement incentives to employees who have
25 accumulated many years of service credit; and
26 WHEREAS, Implementation of the early retirement program
27 will provide a budgeting tool to aid in controlling payroll
28 costs; and
29 WHEREAS, The (name of governing body) has determined that
30 the adoption of an early retirement incentive program is in
31 the best interests of the (name of participating employer);
32 therefore be it
33 RESOLVED (ORDAINED) by the (name of governing body) of
34 (name of participating employer) that:
HB2047 Engrossed -18- LRB9004280EGfg
1 (1) The (name of participating employer) does hereby
2 adopt the Illinois Municipal Retirement Fund early retirement
3 incentive program as provided in Section 7-141.1 of the
4 Illinois Pension Code. The early retirement incentive
5 program shall take effect on (date).
6 (2) In order to help achieve a true cost savings, a
7 person who retires under the early retirement incentive
8 program shall lose those incentives if he or she later
9 accepts employment with any IMRF employer in a position for
10 which participation in IMRF is required or is elected by the
11 employee.
12 (3) In order to utilize an early retirement incentive as
13 a budgeting tool, the (name of participating employer) will
14 use its best efforts either to limit the number of employees
15 who replace the employees who retire under the early
16 retirement program or to limit the salaries paid to the
17 employees who replace the employees who retire under the
18 early retirement program.
19 (4) The effective date of each employee's retirement
20 under this early retirement program shall be set by (name of
21 employer) and shall be no earlier than the effective date of
22 the program and no later than one year after that effective
23 date; except that the employee may require that the
24 retirement date set by the employer be no later than the June
25 30 next occurring after the effective date of the program and
26 no earlier than the date upon which the employee qualifies
27 for retirement.
28 (5) To be eligible for the early retirement incentive
29 under this Section, the employee must have attained age 50
30 and have at least 20 years of creditable service by his or
31 her retirement date.
32 (6) The (clerk or secretary) shall promptly file a
33 certified copy of this resolution (ordinance) with the Board
34 of Trustees of the Illinois Municipal Retirement Fund.
HB2047 Engrossed -19- LRB9004280EGfg
1 CERTIFICATION
2 I, (name), the (clerk or secretary) of the (name of
3 participating employer) of the County of (name), State of
4 Illinois, do hereby certify that I am the keeper of the books
5 and records of the (name of employer) and that the foregoing
6 is a true and correct copy of a resolution (ordinance) duly
7 adopted by the (governing body) at a meeting duly convened
8 and held on (date).
9 SEAL
10 (Signature of clerk or secretary)
11 (c) To be eligible for the benefits provided under an
12 early retirement incentive program adopted under this
13 Section, a member must:
14 (1) be a participating employee of this Fund who,
15 on the effective date of the program, (i) is in active
16 payroll status as an employee of a participating employer
17 that has filed the required ordinance or resolution with
18 the Board, (ii) is on layoff status from such a position
19 with a right of re-employment or recall to service, (iii)
20 is on a leave of absence from such a position, or (iv) is
21 on disability but has not been receiving benefits under
22 Section 7-146 or 7-150 for a period of more than 2 years
23 from the date of application;
24 (2) have never previously received a retirement
25 annuity under this Article or under the Retirement
26 Systems Reciprocal Act using service credit established
27 under this Article;
28 (3) file with the Board within 60 days of the
29 effective date of the program an application requesting
30 the benefits provided in this Section;
31 (4) have at least 20 years of creditable service in
32 the Fund by the date of retirement, without the use of
33 any creditable service established under this Section;
34 (5) have attained age 50 by the date of retirement,
HB2047 Engrossed -20- LRB9004280EGfg
1 without the use of any age enhancement received under
2 this Section; and
3 (6) be eligible to receive a retirement annuity
4 under this Article by the date of retirement, for which
5 purpose the age enhancement and creditable service
6 established under this Section may be considered.
7 (d) The employer shall determine the retirement date for
8 each employee participating in the early retirement program
9 adopted under this Section. The retirement date shall be no
10 earlier than the effective date of the program and no later
11 than one year after that effective date, except that the
12 employee may require that the retirement date set by the
13 employer be no later than the June 30 next occurring after
14 the effective date of the program and no earlier than the
15 date upon which the employee qualifies for retirement. The
16 employer shall give each employee participating in the early
17 retirement program at least 30 days written notice of the
18 employee's designated retirement date, unless the employee
19 waives this notice requirement.
20 (e) An eligible person may establish up to 5 years of
21 creditable service under this Section. In addition, for each
22 period of creditable service established under this Section,
23 a person shall have his or her age at retirement deemed
24 enhanced by an equivalent period.
25 The creditable service established under this Section may
26 be used for all purposes under this Article and the
27 Retirement Systems Reciprocal Act, except for the computation
28 of final rate of earnings and the determination of earnings,
29 salary, or compensation under this or any other Article of
30 the Code.
31 The age enhancement established under this Section may be
32 used for all purposes under this Article (including
33 calculation of the reduction imposed under subdivision
34 (a)1b(iv) of Section 7-142), except for purposes of a
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1 reversionary annuity under Section 7-145 and any
2 distributions required because of age. The age enhancement
3 established under this Section may be used in calculating a
4 proportionate annuity payable by this Fund under the
5 Retirement Systems Reciprocal Act, but shall not be used in
6 determining benefits payable under other Articles of this
7 Code under the Retirement Systems Reciprocal Act.
8 (f) For all creditable service established under this
9 Section, the member must pay to the Fund an employee
10 contribution consisting of 4.5% of the member's highest
11 annual salary rate used in the determination of the final
12 rate of earnings for retirement annuity purposes for each
13 year of creditable service granted under this Section. For
14 creditable service established under this Section by a person
15 who is a sheriff's law enforcement employee to be deemed
16 service as a sheriff's law enforcement employee, the employee
17 contribution shall be at the rate of 6.5% of highest annual
18 salary per year of creditable service granted. Contributions
19 for fractions of a year of service shall be prorated. Any
20 amounts that are disregarded in determining the final rate of
21 earnings under subdivision (d)(5) of Section 7-116 (the 125%
22 rule) shall also be disregarded in determining the required
23 contribution under this subsection (f).
24 The employee contribution shall be paid to the Fund as
25 follows: If the member is entitled to a lump sum payment for
26 accumulated vacation, sick leave, or personal leave upon
27 withdrawal from service, the employer shall deduct the
28 employee contribution from that lump sum and pay the deducted
29 amount directly to the Fund. If there is no such lump sum
30 payment or the required employee contribution exceeds the net
31 amount of the lump sum payment, then the remaining amount
32 due, at the option of the employee, may either be paid to the
33 Fund before the annuity commences or deducted from the
34 retirement annuity in 24 equal monthly installments.
HB2047 Engrossed -22- LRB9004280EGfg
1 (g) An annuitant who has received any age enhancement or
2 creditable service under this Section and thereafter accepts
3 employment with or enters into a personal services contract
4 with an employer under this Article thereby forfeits that age
5 enhancement and creditable service. A person forfeiting
6 early retirement incentives under this subsection (i) must
7 repay to the Fund that portion of the retirement annuity
8 already received which is attributable to the early
9 retirement incentives that are being forfeited, (ii) shall
10 not be eligible to participate in any future early retirement
11 program adopted under this Section, and (iii) is entitled to
12 a refund of the employee contribution paid under subsection
13 (f). The Board shall deduct the required repayment from the
14 refund and may impose a reasonable payment schedule for
15 repaying the amount, if any, by which the required repayment
16 exceeds the refund amount.
17 (h) The additional unfunded liability accruing as a
18 result of the adoption of a program of early retirement
19 incentives under this Section by an employer shall be
20 amortized over a period of 10 years beginning on January 1 of
21 the second calendar year following the calendar year in which
22 the latest date for beginning to receive a retirement annuity
23 under the program (as determined by the employer under
24 subsection (d) of this Section) occurs; except that the
25 employer may provide for a shorter amortization period (of no
26 less than 5 years) by adopting an ordinance or resolution
27 specifying the length of the amortization period and
28 submitting a certified copy of the ordinance or resolution to
29 the Fund no later than 6 months after the effective date of
30 the program. An employer, at its discretion, may accelerate
31 payments to the Fund.
32 An employer may provide more than one early retirement
33 incentive program for its employees under this Section.
34 However, an employer that has provided an early retirement
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1 incentive program for its employees under this Section may
2 not provide another early retirement incentive program under
3 this Section until (1) the liability arising from the earlier
4 program has been fully paid to the Fund and (2) at least 6
5 years have elapsed from the effective date of the previous
6 program.
7 (Source: P.A. 89-329, eff. 8-17-95.)
8 (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
9 Sec. 8-138. Minimum annuities - Additional provisions.
10 (a) An employee who withdraws after age 65 or more with
11 at least 20 years of service, for whom the amount of age and
12 service and prior service annuity combined is less than the
13 amount stated in this Section, shall from the date of
14 withdrawal, instead of all annuities otherwise provided, be
15 entitled to receive an annuity for life of $150 a year, plus
16 1 1/2% for each year of service, to and including 20 years,
17 and 1 2/3% for each year of service over 20 years, of his
18 highest average annual salary for any 4 consecutive years
19 within the last 10 years of service immediately preceding the
20 date of withdrawal.
21 An employee who withdraws after 20 or more years of
22 service, before age 65, shall be entitled to such annuity, to
23 begin not earlier than upon attained age of 55 years if under
24 such age at withdrawal, reduced by 2% for each full year or
25 fractional part thereof that his attained age is less than
26 65, plus an additional 2% reduction for each full year or
27 fractional part thereof that his attained age when annuity is
28 to begin is less than 60 so that the total reduction at age
29 55 shall be 30%.
30 (b) An employee who withdraws after July 1, 1957, at age
31 60 or over, with 20 or more years of service, for whom the
32 age and service and prior service annuity combined, is less
33 than the amount stated in this paragraph, shall, from the
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1 date of withdrawal, instead of such annuities, be entitled to
2 receive an annuity for life equal to 1 2/3% for each year of
3 service, of the highest average annual salary for any 5
4 consecutive years within the last 10 years of service
5 immediately preceding the date of withdrawal; provided, that
6 in the case of any employee who withdraws on or after July 1,
7 1971, such employee age 60 or over with 20 or more years of
8 service, shall receive an annuity for life equal to 1.67% for
9 each of the first 10 years of service; 1.90% for each of the
10 next 10 years of service; 2.10% for each year of service in
11 excess of 20 but not exceeding 30; and 2.30% for each year of
12 service in excess of 30, based on the highest average annual
13 salary for any 4 consecutive years within the last 10 years
14 of service immediately preceding the date of withdrawal.
15 An employee who withdraws after July 1, 1957 and before
16 January 1, 1988, with 20 or more years of service, before age
17 60 years is entitled to annuity, to begin not earlier than
18 upon attained age of 55 years, if under such age at
19 withdrawal, as computed in the last preceding paragraph,
20 reduced 0.25% for each full month or fractional part thereof
21 that his attained age when annuity is to begin is less than
22 60 if the employee was born before January 1, 1936, or 0.5%
23 for each such month if the employee was born on or after
24 January 1, 1936.
25 Any employee born before January 1, 1936, who withdraws
26 with 20 or more years of service, and any employee with 20 or
27 more years of service who withdraws on or after January 1,
28 1988, may elect to receive, in lieu of any other employee
29 annuity provided in this Section, an annuity for life equal
30 to 1.80% for each of the first 10 years of service, 2.00% for
31 each of the next 10 years of service, 2.20% for each year of
32 service in excess of 20 but not exceeding 30, and 2.40% for
33 each year of service in excess of 30, of the highest average
34 annual salary for any 4 consecutive years within the last 10
HB2047 Engrossed -25- LRB9004280EGfg
1 years of service immediately preceding the date of
2 withdrawal, to begin not earlier than upon attained age of 55
3 years, if under such age at withdrawal, reduced 0.25% for
4 each full month or fractional part thereof that his attained
5 age when annuity is to begin is less than 60; except that an
6 employee retiring on or after January 1, 1988, at age 55 or
7 over but less than age 60, having at least 35 years of
8 service, or an employee retiring on or after July 1, 1990, at
9 age 55 or over but less than age 60, having at least 30 years
10 of service, or an employee retiring on or after the effective
11 date of this amendatory Act of 1997, at age 55 or over but
12 less than age 60, having at least 25 years of service, shall
13 not be subject to the reduction in retirement annuity because
14 of retirement below age 60.
15 However, in the case of an employee who retired on or
16 after January 1, 1985 but before January 1, 1988, at age 55
17 or older and with at least 35 years of service, and who was
18 subject under this subsection (b) to the reduction in
19 retirement annuity because of retirement below age 60, that
20 reduction shall cease to be effective January 1, 1991, and
21 the retirement annuity shall be recalculated accordingly.
22 Any employee who withdraws on or after July 1, 1990, with
23 20 or more years of service, may elect to receive, in lieu of
24 any other employee annuity provided in this Section, an
25 annuity for life equal to 2.20% for each year of service of
26 the highest average annual salary for any 4 consecutive years
27 within the last 10 years of service immediately preceding the
28 date of withdrawal, to begin not earlier than upon attained
29 age of 55 years, if under such age at withdrawal, reduced
30 0.25% for each full month or fractional part thereof that his
31 attained age when annuity is to begin is less than 60; except
32 that an employee retiring at age 55 or over but less than age
33 60, having at least 30 years of service, shall not be subject
34 to the reduction in retirement annuity because of retirement
HB2047 Engrossed -26- LRB9004280EGfg
1 below age 60.
2 Any employee who withdraws on or after the effective date
3 of this amendatory Act of 1997 with 20 or more years of
4 service may elect to receive, in lieu of any other employee
5 annuity provided in this Section, an annuity for life equal
6 to 2.20%, for each year of service, of the highest average
7 annual salary for any 4 consecutive years within the last 10
8 years of service immediately preceding the date of
9 withdrawal, to begin not earlier than upon attainment of age
10 55 (age 50 if the employee has at least 30 years of service),
11 reduced 0.25% for each full month or remaining fractional
12 part thereof that the employee's attained age when annuity is
13 to begin is less than 60; except that an employee retiring at
14 age 50 or over with at least 30 years of service or at age 55
15 or over with at least 25 years of service shall not be
16 subject to the reduction in retirement annuity because of
17 retirement below age 60.
18 The maximum annuity payable under part (a) and (b) of
19 this Section shall not exceed 70% of highest average annual
20 salary in the case of an employee who withdraws prior to July
21 1, 1971, and 75% if withdrawal takes place on or after July
22 1, 1971. For the purpose of the minimum annuity provided in
23 this Section $1,500 is considered the minimum annual salary
24 for any year; and the maximum annual salary for the
25 computation of such annuity is $4,800 for any year before
26 1953, $6000 for the years 1953 to 1956, inclusive, and the
27 actual annual salary, as salary is defined in this Article,
28 for any year thereafter.
29 To preserve rights existing on December 31, 1959, for
30 participants and contributors on that date to the fund
31 created by the Court and Law Department Employees' Annuity
32 Act, who became participants in the fund provided for on
33 January 1, 1960, the maximum annual salary to be considered
34 for such persons for the years 1955 and 1956 is $7,500.
HB2047 Engrossed -27- LRB9004280EGfg
1 (c) For an employee receiving disability benefit, his
2 salary for annuity purposes under paragraphs (a) and (b) of
3 this Section, for all periods of disability benefit
4 subsequent to the year 1956, is the amount on which his
5 disability benefit was based.
6 (d) An employee with 20 or more years of service, whose
7 entire disability benefit credit period expires before
8 attainment of age 55 while still disabled for service, is
9 entitled upon withdrawal to the larger of (1) the minimum
10 annuity provided above, assuming he is then age 55, and
11 reducing such annuity to its actuarial equivalent as of his
12 attained age on such date or (2) the annuity provided from
13 his age and service and prior service annuity credits.
14 (e) The minimum annuity provisions do not apply to any
15 former municipal employee receiving an annuity from the fund
16 who re-enters service as a municipal employee, unless he
17 renders at least 3 years of additional service after the date
18 of re-entry.
19 (f) An employee in service on July 1, 1947, or who
20 became a contributor after July 1, 1947 and before attainment
21 of age 70, who withdraws after age 65, with less than 20
22 years of service for whom the annuity has been fixed under
23 this Article shall, instead of the annuity so fixed, receive
24 an annuity as follows:
25 Such amount as he could have received had the accumulated
26 amounts for annuity been improved with interest at the
27 effective rate to the date of his withdrawal, or to
28 attainment of age 70, whichever is earlier, and had the city
29 contributed to such earlier date for age and service annuity
30 the amount that it would have contributed had he been under
31 age 65, after the date his annuity was fixed in accordance
32 with this Article, and assuming his annuity were computed
33 from such accumulations as of his age on such earlier date.
34 The annuity so computed shall not exceed the annuity which
HB2047 Engrossed -28- LRB9004280EGfg
1 would be payable under the other provisions of this Section
2 if the employee was credited with 20 years of service and
3 would qualify for annuity thereunder.
4 (g) Instead of the annuity provided in this Article, an
5 employee having attained age 65 with at least 15 years of
6 service who withdraws from service on or after July 1, 1971
7 and whose annuity computed under other provisions of this
8 Article is less than the amount provided under this
9 paragraph, is entitled to a minimum annuity for life equal to
10 1% of the highest average annual salary, as salary is defined
11 and limited in this Section for any 4 consecutive years
12 within the last 10 years of service for each year of service,
13 plus the sum of $25 for each year of service. The annuity
14 shall not exceed 60% of such highest average annual salary.
15 (h) The minimum annuities provided under this Section
16 shall be paid in equal monthly installments.
17 (i) The amendatory provisions of part (b) and (g) of
18 this Section shall be effective July 1, 1971 and apply in the
19 case of every qualifying employee withdrawing on or after
20 July 1, 1971.
21 (j) The amendatory provisions of this amendatory Act of
22 1985 (P.A. 84-23) relating to the discount of annuity because
23 of retirement prior to attainment of age 60, and to the
24 retirement formula, for those born before January 1, 1936,
25 shall apply only to qualifying employees withdrawing on or
26 after July 18, 1985.
27 (k) Beginning on the effective date of this amendatory
28 Act of 1997 January 1, 1991, the minimum amount of employee's
29 annuity shall be $550 $350 per month for life for the
30 following classes of employees, without regard to the fact
31 that withdrawal occurred prior to the effective date of this
32 amendatory Act of 1997 January 1, 1991:
33 (1) any employee annuitant alive and receiving a
34 life annuity on the effective date of this amendatory Act
HB2047 Engrossed -29- LRB9004280EGfg
1 of 1997 January 1, 1991, except a reciprocal annuity;
2 (2) any employee annuitant alive and receiving a
3 term annuity on the effective date of this amendatory Act
4 of 1997 January 1, 1991, except a reciprocal annuity;
5 (3) any employee annuitant alive and receiving a
6 reciprocal annuity on the effective date of this
7 amendatory Act of 1997 January 1, 1991, whose service in
8 this fund is at least 5 years;
9 (4) any employee annuitant withdrawing after age 60
10 on or after the effective date of this amendatory Act of
11 1997 January 1, 1991, with at least 10 years of service
12 in this fund.
13 The increases granted under items (1), (2) and (3) of
14 this subsection (k) shall not be limited by any other Section
15 of this Act.
16 (Source: P.A. 85-964; 86-1488.)
17 (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
18 Sec. 8-150.1. Minimum annuities for widows. The widow
19 (otherwise eligible for widow's annuity under other Sections
20 of this Article 8) of an employee hereinafter described, who
21 retires from service or dies while in the service subsequent
22 to the effective date of this amendatory provision, and for
23 which widow the amount of widow's annuity and widow's prior
24 service annuity combined, fixed or provided for such widow
25 under other provisions of this Article is less than the
26 amount provided in this Section, shall, from and after the
27 date her otherwise provided annuity would begin, in lieu of
28 such otherwise provided widow's and widow's prior service
29 annuity, be entitled to the following indicated amount of
30 annuity:
31 (a) The widow of any employee who dies while in service
32 on or after the date on which he attains age 60 if the death
33 occurs before July 1, 1990, or on or after the date on which
HB2047 Engrossed -30- LRB9004280EGfg
1 he attains age 55 if the death occurs on or after July 1,
2 1990, with at least 20 years of service, or on or after the
3 date on which he attains age 50 if the death occurs on or
4 after the effective date of this amendatory Act of 1997 with
5 at least 30 years of service, shall be entitled to an annuity
6 equal to one-half of the amount of annuity which her deceased
7 husband would have been entitled to receive had he withdrawn
8 from the service on the day immediately preceding the date of
9 his death, conditional upon such widow having attained the
10 age of 60 or more years on such date if the death occurs
11 before July 1, 1990, or age 55 or more if the death occurs on
12 or after July 1, 1990. Such amount of widow's annuity shall
13 not, however, exceed the sum of $500 a month if the
14 employee's death in service occurs before January 23, 1987.
15 The widow's annuity shall not be limited to a maximum dollar
16 amount if the employee's death in service occurs on or after
17 January 23, 1987.
18 If the employee dies in service before July 1, 1990, and
19 if such widow of such described employee shall not be 60 or
20 more years of age on such date of death, the amount provided
21 in the immediately preceding paragraph for a widow 60 or more
22 years of age, shall, in the case of such younger widow, be
23 reduced by 0.25% for each month that her then attained age is
24 less than 60 years if the employee was born before January 1,
25 1936 or dies in service on or after January 1, 1988, or by
26 0.5% for each month that her then attained age is less than
27 60 years if the employee was born on or after July 1, 1936
28 and dies in service before January 1, 1988.
29 If the employee dies in service on or after July 1, 1990,
30 and if the widow of the employee has not attained age 55 on
31 or before the employee's date of death, the amount otherwise
32 provided in this subsection (a) shall be reduced by 0.25% for
33 each month that her then attained age is less than 55 years.
34 (b) The widow of any employee who dies subsequent to the
HB2047 Engrossed -31- LRB9004280EGfg
1 date of his retirement on annuity, and who so retired on or
2 after the date on which he attained the age of 60 or more
3 years if retirement occurs before July 1, 1990, or on or
4 after the date on which he attained age 55 if retirement
5 occurs on or after July 1, 1990, with at least 20 years of
6 service, or on or after the date on which he attained age 50
7 if the retirement occurs on or after the effective date of
8 this amendatory Act of 1997 with at least 30 years of
9 service, shall be entitled to an annuity equal to one-half of
10 the amount of annuity which her deceased husband received as
11 of the date of his retirement on annuity, conditional upon
12 such widow having attained the age of 60 or more years on the
13 date of her husband's retirement on annuity if retirement
14 occurs before July 1, 1990, or age 55 or more if retirement
15 occurs on or after July 1, 1990. Such amount of widow's
16 annuity shall not, however, exceed the sum of $500 a month if
17 the employee's death occurs before January 23, 1987. The
18 widow's annuity shall not be limited to a maximum dollar
19 amount if the employee's death occurs on or after January 23,
20 1987, regardless of the date of retirement; provided that, if
21 retirement was before January 23, 1987, the employee or
22 eligible spouse repays the excess spouse refund with interest
23 at the effective rate from the date of refund to the date of
24 repayment.
25 If the date of the employee's retirement on annuity is
26 before July 1, 1990, and if such widow of such described
27 employee shall not have attained such age of 60 or more years
28 on such date of her husband's retirement on annuity, the
29 amount provided in the immediately preceding paragraph for a
30 widow 60 or more years of age on the date of her husband's
31 retirement on annuity, shall, in the case of such then
32 younger widow, be reduced by 0.25% for each month that her
33 then attained age was less than 60 years if the employee was
34 born before January 1, 1936 or withdraws from service on or
HB2047 Engrossed -32- LRB9004280EGfg
1 after January 1, 1988, or by 0.5% for each month that her
2 then attained age is less than 60 years if the employee was
3 born on or after January 1, 1936 and withdraws from service
4 before January 1, 1988.
5 If the date of the employee's retirement on annuity is on
6 or after July 1, 1990, and if the widow of the employee has
7 not attained age 55 by the date of the employee's retirement
8 on annuity, the amount otherwise provided in this subsection
9 (b) shall be reduced by 0.25% for each month that her then
10 attained age is less than 55 years.
11 (c) The foregoing provisions relating to minimum
12 annuities for widows shall not apply to the widow of any
13 former municipal employee receiving an annuity from the fund
14 on August 9, 1965 or on the effective date of this amendatory
15 provision, who re-enters service as a municipal employee,
16 unless such employee renders at least 3 years of additional
17 service after the date of re-entry.
18 (d) In computing the amount of annuity which the husband
19 specified in the foregoing paragraphs (a) and (b) of this
20 Section would have been entitled to receive, or received,
21 such amount shall be the annuity to which such husband would
22 have been, or was entitled, before reduction in the amount of
23 his annuity for the purposes of the voluntary optional
24 reversionary annuity provided for in Sec. 8-139 of this
25 Article, if such option was elected.
26 (e) The amendatory provisions of part (a) and (b) of
27 this Section (increasing the maximum from $300 to $400 a
28 month) shall be effective as of July 1, 1971, and apply in
29 the case of every qualifying widow whose husband dies while
30 in service on or after July 1, 1971 or withdraws and enters
31 on annuity on or after July 1, 1971.
32 (f) The amendments of part (a) and (b) of this Section
33 by this amendatory Act of 1983 (increasing the maximum from
34 $400 to $500 a month) shall be effective as of January 1,
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1 1984 and shall apply in the case of every qualifying widow
2 whose husband dies while in the service on or after January
3 1, 1984, or withdraws and enters on annuity on or after
4 January 1, 1984.
5 (g) The amendatory provisions of this amendatory Act of
6 1985 relating to annuity discount because of age for widows
7 of employees born before January 1, 1936, shall apply only to
8 qualifying widows of employees withdrawing or dying in
9 service on or after July 18, 1985.
10 (h) Beginning on the effective date of this amendatory
11 Act of 1997 January 1, 1991, the minimum amount of widow's
12 annuity shall be $500 $300 per month for life for the
13 following classes of widows, without regard to the fact that
14 the death of the employee occurred prior to the effective
15 date of this amendatory Act of 1997 January 1, 1991:
16 (1) any widow annuitant alive and receiving a life
17 annuity on the effective date of this amendatory Act of
18 1997 January 1, 1991, except a reciprocal annuity;
19 (2) any widow annuitant alive and receiving a term
20 annuity on the effective date of this amendatory Act of
21 1997 January 1, 1991, except a reciprocal annuity;
22 (3) any widow annuitant alive and receiving a
23 reciprocal annuity on the effective date of this
24 amendatory Act of 1997 January 1, 1991, whose employee
25 spouse's service in this fund was at least 5 years;
26 (4) the widow of an employee with at least 10 years
27 of service in this fund who dies after retirement, if the
28 retirement occurred prior to the effective date of this
29 amendatory Act of 1997 January 1, 1991;
30 (5) the widow of an employee with at least 10 years
31 of service in this fund who dies after retirement, if
32 withdrawal occurs on or after the effective date of this
33 amendatory Act of 1997 January 1, 1991;
34 (6) the widow of an employee who dies in service
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1 with at least 5 years of service in this fund, if the
2 death in service occurs on or after the effective date of
3 this amendatory Act of 1997 January 1, 1991.
4 The increases granted under items (1), (2), (3) and (4)
5 of this subsection (h) shall not be limited by any other
6 Section of this Act.
7 (i) The widow of an employee who retired or died in
8 service on or after January 1, 1985 and before July 1, 1990,
9 at age 55 or older, and with at least 35 years of service
10 credit, shall be entitled to have her widow's annuity
11 increased, effective January 1, 1991, to an amount equal to
12 50% of the retirement annuity that the deceased employee
13 received on the date of retirement, or would have been
14 eligible to receive if he had retired on the day preceding
15 the date of his death in service, provided that if the widow
16 had not attained age 60 by the date of the employee's
17 retirement or death in service, the amount of the annuity
18 shall be reduced by 0.25% for each month that her then
19 attained age was less than age 60 if the employee's
20 retirement or death in service occurred on or after January
21 1, 1988, or by 0.5% for each month that her attained age is
22 less than age 60 if the employee's retirement or death in
23 service occurred prior to January 1, 1988. However, in cases
24 where a refund of excess contributions for widow's annuity
25 has been paid by the Fund, the increase in benefit provided
26 by this subsection (i) shall be contingent upon repayment of
27 the refund to the Fund with interest at the effective rate
28 from the date of refund to the date of payment.
29 (j) If a deceased employee is receiving a retirement
30 annuity at the time of death and that death occurs on or
31 after the effective date of this amendatory Act of 1997, the
32 widow may elect to receive, in lieu of any other annuity
33 provided under this Article, 50% of the deceased employee's
34 retirement annuity at the time of death reduced by 0.25% for
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1 each month that the widow's age on the date of death is less
2 than 55. However, in cases where a refund of excess
3 contributions for widow's annuity has been paid by the Fund,
4 the benefit provided by this subsection (j) is contingent
5 upon repayment of the refund to the Fund with interest at the
6 effective rate from the date of refund to the date of
7 payment.
8 (Source: P.A. 85-964; 86-1488.)
9 (40 ILCS 5/8-159) (from Ch. 108 1/2, par. 8-159)
10 Sec. 8-159. Amount of child's annuity. Beginning on the
11 effective date of this amendatory Act of 1997 January 1,
12 1988, the amount of a child's annuity shall be $220 $120 per
13 month for each child while the spouse of the deceased
14 employee parent survives, and $250 $150 per month for each
15 child when no such spouse survives, and shall be subject to
16 the following limitations:
17 (1) If the combined annuities for the widow and children
18 of an employee whose death resulted from injury incurred in
19 the performance of duty, or for the children where a widow
20 does not exist, exceed 70% of the employee's final monthly
21 salary, the annuity for each child shall be reduced pro rata
22 so that the combined annuities for the family shall not
23 exceed such limitation.
24 (2) For the family of an employee whose death is the
25 result of any cause other than injury incurred in the
26 performance of duty, in which the combined annuities for the
27 family exceed 60% of the employee's final monthly salary, the
28 annuity for each child shall be reduced pro rata so that the
29 combined annuities for the family shall not exceed such
30 limitation.
31 (3) The increase in child's annuity provided by this
32 amendatory Act of 1997 1987 shall apply to all child's
33 annuities being paid on or after the effective date of this
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1 amendatory Act of 1997. January 1, 1988, subject to The
2 above limitations on the combined annuities for a family in
3 parts (1) and (2) of this Section do not apply to families of
4 employees who died before the effective date of this
5 amendatory Act of 1997.
6 (4) The amendments to parts (1) and (2) of this Section
7 made by Public Act 84-1472 (eliminating the further
8 limitation that the monthly combined family amount shall not
9 exceed $500 plus 10% of the employee's final monthly salary)
10 shall apply in the case of every qualifying child whose
11 employee parent dies in the service or enters on annuity on
12 or after January 23, 1987.
13 (Source: P.A. 85-964.)
14 (40 ILCS 5/8-164.1) (from Ch. 108 1/2, par. 8-164.1)
15 Sec. 8-164.1. Group health benefit.
16 (a) For the purposes of this Section: (1) "annuitant"
17 means a person receiving an age and service annuity, a prior
18 service annuity, a widow's annuity, a widow's prior service
19 annuity, or a minimum annuity on or after January 1, 1988,
20 under Article 5, 6, 8 or 11, by reason of previous employment
21 by the City of Chicago (hereinafter, in this Section, "the
22 city"); (2) "Medicare Plan annuitant" means an annuitant
23 described in item (1) who is eligible for Medicare benefits;
24 and (3) "non-Medicare Plan annuitant" means an annuitant
25 described in item (1) who is not eligible for Medicare
26 benefits.
27 (b) The city shall continue to offer group health
28 benefits to annuitants and their eligible dependents through
29 June 30, 2002. The same basic city health care plan
30 available as of June 30, 1988 (hereinafter called the basic
31 city plan) shall cease to be a plan offered by the city,
32 except as specified in subparagraphs (4) and (5) below, and
33 shall be closed to new enrollment or transfer of coverage for
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1 any non-Medicare Plan annuitant as of the effective date of
2 this amendatory Act of 1997. The city shall offer
3 non-Medicare Plan annuitants and their eligible dependents
4 the option of enrolling in its Annuitant Preferred Provider
5 Plan, and may offer additional plans for any annuitant. The
6 city may amend, modify, or terminate any of its additional
7 plans at its sole discretion. If the city offers more than
8 one annuitant plan, the city shall allow annuitants to
9 convert coverage from one city annuitant plan to another,
10 except the basic city plan, during times designated by the
11 city, which periods of time shall occur at least annually.
12 For the period dating from the effective date of this
13 amendatory Act of 1997 through June 30, 2002, monthly premium
14 rates may be increased for annuitants during the time of
15 their participation in non-Medicare plans, except as provided
16 in subparagraphs (1) through (4) of this subsection.
17 (1) For non-Medicare Plan annuitants who retired
18 prior to January 1, 1988, the annuitant's share of
19 monthly premium for non-Medicare Plan coverage only shall
20 not exceed the highest premium rate chargeable under any
21 city non-Medicare Plan annuitant coverage as of December
22 1, 1996.
23 (2) For non-Medicare Plan annuitants who retire on
24 or after January 1, 1988, the annuitant's share of
25 monthly premium for non-Medicare Plan coverage only shall
26 be the rate in effect on December 1, 1996, with monthly
27 premium increases to take effect no sooner than April 1,
28 1998 at the lower of (i) the premium rate determined
29 pursuant to subsection (g) or (ii) 10% of the immediately
30 previous month's rate for similar coverage.
31 (3) In no event shall any non-Medicare Plan
32 annuitant's share of monthly premium for non-Medicare
33 Plan coverage exceed 10% of the annuitant's monthly
34 annuity.
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1 (4) Non-Medicare Plan annuitants who are enrolled
2 in the basic city plan as of July 1, 1998 may remain in
3 the basic city plan, if they so choose, on the condition
4 that they are not entitled to the caps on rates set forth
5 in subparagraphs (1) through (3), and their premium rate
6 shall be the rate determined in accordance with
7 subsections (c) and (g).
8 (5) Medicare Plan annuitants who are currently
9 enrolled in the basic city plan for Medicare eligible
10 annuitants may remain in that plan, if they so choose,
11 through June 30, 2002. Annuitants shall not be allowed
12 to enroll in or transfer into the basic city plan for
13 Medicare eligible annuitants on or after July 1, 1999.
14 The city shall continue to offer annuitants a
15 supplemental Medicare Plan for Medicare eligible
16 annuitants through June 30, 2002, and the city may offer
17 additional plans to Medicare eligible annuitants in its
18 sole discretion. All Medicare Plan annuitant monthly
19 rates shall be determined in accordance with subsections
20 (c) and (g).
21 (c) Effective the date the initial increased annuitant
22 payments pursuant to subsection (g) take effect, The city
23 shall pay 50% of the aggregated costs of the claims or
24 premiums, whichever is applicable, as determined in
25 accordance with subsection (g), of annuitants and their
26 dependents under all health care plans offered by the city.
27 The city may reduce its obligation by application of price
28 reductions obtained as a result of financial arrangements
29 with providers or plan administrators. The claims or
30 premiums of all annuitants and their dependents under all of
31 the plans offered by the city shall be aggregated for the
32 purpose of calculating the city's payment required under this
33 subsection, as well as for the setting of rates of payment
34 for annuitants as required under subsection (g).
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1 (d) From January 1, 1988 until December 31, 1992, the
2 board shall pay to the city on behalf of each of the board's
3 annuitants who chooses to participate in any of the city's
4 plans the following amounts: up to a maximum of $65 per month
5 for each such annuitant who is not qualified to receive
6 medicare benefits, and up to a maximum of $35 per month for
7 each such annuitant who is qualified to receive medicare
8 benefits. From January 1, 1993 until June 30, 2002 December
9 31, 1997, the board shall pay to the city on behalf of each
10 of the board's annuitants who chooses to participate in any
11 of the city's plans the following amounts: up to a maximum of
12 $75 per month for each such annuitant who is not qualified to
13 receive medicare benefits, and up to a maximum of $45 per
14 month for each such annuitant who is qualified to receive
15 medicare benefits.
16 For the period January 1, 1988 through the effective date
17 of this amendatory Act of 1989, payments under this Section
18 shall be reduced by the amounts paid by or on behalf of the
19 board's annuitants covered during that period.
20 Commencing on the effective date of this amendatory Act
21 of 1989, the board is authorized to pay to the board of
22 education on behalf of each person who chooses to participate
23 in the board of education's plan the amounts specified in
24 this subsection (d) during the years indicated. For the
25 period January 1, 1988 through the effective date of this
26 amendatory Act of 1989, the board shall pay to the board of
27 education annuitants who participate in the board of
28 education's health benefits plan for annuitants the following
29 amounts: $10 per month to each annuitant who is not qualified
30 to receive medicare benefits, and $14 per month to each
31 annuitant who is qualified to receive medicare benefits.
32 The payments described in this subsection shall be paid
33 from the tax levy authorized under Section 8-189; such
34 amounts shall be credited to the reserve for group hospital
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1 care and group medical and surgical plan benefits, and all
2 payments to the city required under this subsection shall be
3 charged against it.
4 (e) The city's obligations under subsections (b) and (c)
5 shall terminate on June 30, 2002 December 31, 1997, except
6 with regard to covered expenses incurred but not paid as of
7 that date. This subsection shall not affect other
8 obligations that may be imposed by law.
9 (f) The group coverage plans described in this Section
10 are not and shall not be construed to be pension or
11 retirement benefits for purposes of Section 5 of Article XIII
12 of the Illinois Constitution of 1970.
13 (g) For each annuitant plan offered by the city, the
14 aggregate cost of claims, as reflected in the claim records
15 of the plan administrator, and premiums for each calendar
16 year from 1989 through 1997 of all annuitants and dependents
17 covered by the city's group health care plans shall be
18 estimated by the city, based upon a written determination by
19 a qualified independent actuary to be appointed and paid by
20 the city and the board. If the such estimated annual cost
21 for each annuitant plan offered by the city is more than the
22 estimated amount to be contributed by the city for that plan
23 pursuant to subsections (b) and (c) during that year plus the
24 estimated amounts to be paid pursuant to subsection (d) and
25 by the other pension boards on behalf of other participating
26 annuitants, the difference shall be paid by all participating
27 annuitants participating in the plan, except as provided in
28 subsection (b). The city, based upon the determination of
29 the independent actuary, shall set the monthly amounts to be
30 paid by the participating annuitants. The initial
31 determination of such payments shall be prospective only and
32 shall be based upon the estimated costs for the balance of
33 the year. The board may deduct the amounts to be paid by its
34 annuitants from the participating annuitants' monthly
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1 annuities.
2 If it is determined from the city's annual audit, or from
3 audited experience data, that the total amount paid by all
4 participating annuitants was more or less than the difference
5 between (1) the cost of providing the group health care
6 plans, and (2) the sum of the amount to be paid by the city
7 as determined under subsection (c) and the amounts paid by
8 all the pension boards, then the independent actuary and the
9 city shall account for the excess or shortfall in the next
10 year's payments by annuitants, except as provided in
11 subsection (b).
12 (h) An annuitant may elect to terminate coverage in a
13 plan at the end of any month any time, which election shall
14 terminate the annuitant's obligation to contribute toward
15 payment of the excess described in subsection (g).
16 (i) The city shall advise the board of all proposed
17 premium increases for health care at least 75 days prior to
18 the effective date of the change, and any increase shall be
19 prospective only.
20 (Source: P.A. 86-273.)
21 (40 ILCS 5/9-101) (from Ch. 108 1/2, par. 9-101)
22 Sec. 9-101. Creation of fund. In each county of more
23 than 3,000,000 500,000 inhabitants a County Employees' and
24 Officers' Annuity and Benefit Fund shall be created, set
25 apart, maintained and administered, in the manner prescribed
26 in this Article, for the benefit of the employees and
27 officers herein designated and their beneficiaries.
28 (Source: Laws 1963, p. 161.)
29 (40 ILCS 5/9-120.1 new)
30 Sec. 9-120.1. CTA - continued participation; military
31 service credit.
32 (a) A person who (i) has at least 20 years of creditable
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1 service in the Fund, (ii) has not begun receiving a
2 retirement annuity under this Article, and (iii) is employed
3 in a position under which he or she is eligible to actively
4 participate in the retirement system established under
5 Section 22-101 of this Code may elect, after he or she ceases
6 to be a participant but in no event after June 1, 1998, to
7 continue his or her participation in this Fund while employed
8 by the Chicago Transit Authority, for up to 10 additional
9 years, by making written application to the Board.
10 (b) A person who elects to continue participation under
11 this Section shall make contributions directly to the Fund,
12 not less frequently than monthly, based on the person's
13 actual Chicago Transit Authority compensation and the rates
14 applicable to employees under this Fund. Creditable service
15 shall be granted to any person for the period, not exceeding
16 10 years, during which the person continues participation in
17 this Fund under this Section and continues to make
18 contributions as required. For periods of service
19 established under this Section, the person's actual Chicago
20 Transit Authority compensation shall be considered his or her
21 salary for purposes of calculating benefits under this
22 Article.
23 (c) A person who elects to continue participation under
24 this Section may cancel that election at any time.
25 (d) A person who elects to continue participation under
26 this Section may establish service credit in this Fund for
27 periods of employment by the Chicago Transit Authority prior
28 to that election, by applying in writing and paying to the
29 Fund an amount representing employee contributions for the
30 service being established, based on the person's actual
31 Chicago Transit Authority compensation and the rates then
32 applicable to employees under this Fund, without interest.
33 (e) A person who qualifies under this Section may elect
34 to purchase credit for up to 4 years of military service,
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1 whether or not that service followed service as a county
2 employee. The military service need not have been served in
3 wartime, but the employee must not have been dishonorably
4 discharged. To establish this creditable service the
5 applicant must pay to the Fund, on or before July 1, 1998, an
6 amount determined by the Fund to represent the employee
7 contributions for the creditable service, based on the
8 employee's rate of compensation on his or her last day of
9 service as a contributor before the military service or his
10 or her salary on the first day of service following the
11 military service, whichever is greater, plus interest at the
12 effective rate from the date of discharge to the date of
13 payment. For the purposes of this subsection, "military
14 service" includes service in the United States armed forces
15 reserves.
16 (f) Notwithstanding any other provision of this Section,
17 a person may not establish creditable service under this
18 Section for any period for which the person receives credit
19 under any other public employee retirement system, including
20 the retirement system established under Section 22-101 of
21 this Code, unless the credit under that retirement system has
22 been irrevocably relinquished.
23 (40 ILCS 5/9-133) (from Ch. 108 1/2, par. 9-133)
24 Sec. 9-133. Automatic increase in annuity.
25 (a) An employee who retired or retires from service
26 after December 31, 1959, having attained age 60 or more or,
27 beginning January 1, 1991, having attained 30 or more years
28 of creditable service, shall, in the month of January of the
29 year following the year in which the first anniversary of
30 retirement occurs, have his then fixed and payable monthly
31 annuity increased by 1 1/2%, and such first fixed annuity as
32 granted at retirement increased by a further 1 1/2% in
33 January of each year thereafter. Beginning with January of
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1 the year 1972, such increases shall be at the rate of 2% in
2 lieu of the aforesaid specified 1 1/2%. Beginning with
3 January of the year 1982, such increases shall be at the rate
4 of 3% in lieu of the aforesaid specified 2%. Beginning
5 January 1, 1998, these increases shall be at the rate of 3%
6 of the current amount of the annuity, including any previous
7 increases received under this Article, without regard to
8 whether the annuitant is in service on or after the effective
9 date of this amendatory Act of 1997.
10 An employee who retires on annuity before age 60 and,
11 beginning January 1, 1991, with less than 30 years of
12 creditable service shall receive such increases beginning
13 with January of the year immediately following the year in
14 which he attains the age of 60 years. An employee who
15 retires on annuity before age 60 and before January 1, 1991,
16 with at least 30 years of creditable service, shall be
17 entitled to receive the first increase under this subsection
18 no later than January 1, 1993.
19 For an employee who, in accordance with the provisions of
20 Section 9-108.1 of this Act, shall have become a member of
21 the State System established under Article 14 on February 1,
22 1974, the first such automatic increase shall begin in
23 January of 1975.
24 (b) Subsection (a) is not applicable to an employee
25 retiring and receiving a term annuity, as defined in this
26 Act, nor to any otherwise qualified employee who retires
27 before he makes employee contributions (at the 1/2 of 1% rate
28 as provided in this Section) for this additional annuity for
29 not less than the equivalent of one full year. Such
30 employee, however, shall make arrangement to pay to the fund
31 a balance of such contributions, based on his final salary,
32 as will bring such 1/2 of 1% contributions, computed without
33 interest, to the equivalent of one year's contributions.
34 Beginning with the month of January, 1960, each employee
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1 shall contribute by means of salary deductions 1/2 of 1% of
2 each salary payment, concurrently with and in addition to the
3 employee contributions otherwise provided for annuity
4 purposes.
5 Each such additional contribution shall be credited to an
6 account in the prior service annuity reserve, to be used,
7 together with county contributions, to defray the cost of the
8 specified annuity increments. Any balance in such account as
9 of the beginning of each calendar year shall be credited with
10 interest at the rate of 3% per annum.
11 Such additional employee contributions are not
12 refundable, except to an employee who withdraws and applies
13 for refund under this Article, or applies for annuity, and
14 also in cases where a term annuity becomes payable. In such
15 cases his contributions shall be refunded, without interest,
16 and charged to the prior service annuity reserve.
17 (Source: P.A. 87-794; 87-1265.)
18 (40 ILCS 5/9-133.1) (from Ch. 108 1/2, par. 9-133.1)
19 Sec. 9-133.1. Automatic increases in annuity for certain
20 heretofore retired participants. A retired employee retired
21 at age 55 or over and who (a) is receiving annuity based on a
22 service credit of 20 or more years, and (b) does not qualify
23 for the automatic increases in annuity provided for in Sec.
24 9-133 of this Article, and (c) elects to make a contribution
25 to the Fund at a time and manner prescribed by the Retirement
26 Board, of a sum equal to 1% of the final average monthly
27 salary forming the basis of the calculation of their annuity
28 multiplied by years of credited service, or 1% of their final
29 monthly salary multiplied by years of credited service in any
30 case where the final average salary is not used in the
31 calculation, shall have his original fixed and payable
32 monthly amount of annuity increased in January of the year
33 following the year in which he attains the age of 65 years,
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1 if such age of 65 years is attained in the year 1969 or
2 later, by an amount equal to 1 1/2%, and by an equal
3 additional 1 1/2% in January of each year thereafter.
4 Beginning with January of the year 1972, such increases shall
5 be at the rate of 2% in lieu of the aforesaid specified 1
6 1/2%. Beginning with January of the year 1982, such
7 increases shall be at the rate of 3% in lieu of the aforesaid
8 specified 2%. Beginning January 1, 1998, these increases
9 shall be at the rate of 3% of the current amount of the
10 annuity, including any previous increases received under this
11 Article, without regard to whether the annuitant is in
12 service on or after the effective date of this amendatory Act
13 of 1997.
14 In those cases in which the retired employee receiving
15 annuity has attained the age of 66 or more years in the year
16 1969, he shall have such annuity increased in January of the
17 year 1970 by an amount equal to 1 1/2% multiplied by the
18 number equal to the number of months of January elapsing from
19 and including January of the year immediately following the
20 year he attained the age of 65 years if retired at or prior
21 to age 65, or from and including January of the year
22 immediately following the year of retirement if retired at an
23 age greater than 65 years, to and including January of the
24 year 1970, and by an equal additional 1 1/2% in January of
25 each year thereafter. Beginning with January of the year
26 1972, such increases shall be at the rate of 2% in lieu of
27 the aforesaid specified 1 1/2%. Beginning with January of
28 the year 1982, such increases shall be at the rate of 3% in
29 lieu of the aforesaid specified 2%. Beginning January 1,
30 1998, these increases shall be at the rate of 3% of the
31 current amount of the annuity, including any previous
32 increases received under this Article, without regard to
33 whether the annuitant is in service on or after the effective
34 date of this amendatory Act of 1997.
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1 To defray the annual cost of such increases, the annual
2 interest income of the Fund, accruing from investments held
3 by the Fund, exclusive of gains or losses on sales or
4 exchanges of assets during the year, over and above 4% a
5 year, shall be used to the extent necessary and available to
6 finance the cost of such increases for the following year,
7 and such amount shall be transferred as of the end of each
8 year, beginning with the year 1969, to a Fund account
9 designated as the Supplementary Payment Reserve from the
10 Investment and Interest Reserve set forth in Sec. 9-214. The
11 sums contributed by annuitants as provided for in this
12 Section shall also be placed in the aforesaid Supplementary
13 Payment Reserve and shall be applied for and used for the
14 purposes of such Fund account, together with the aforesaid
15 interest.
16 In the event the monies in the Supplementary Payment
17 Reserve in any year arising from: (1) the available interest
18 income as defined hereinbefore and accruing in the preceding
19 year above 4% a year and (2) the contributions by retired
20 persons, as set forth hereinbefore, are insufficient to make
21 the total payments to all persons estimated to be entitled to
22 the annuity increases specified hereinbefore, then (3) any
23 interest earnings over 4% a year beginning with the year 1969
24 which were not previously used to finance such increases and
25 which were transferred to the Prior Service Annuity Reserve
26 may be used to the extent necessary and available to provide
27 sufficient funds to finance such increases for the current
28 year, and such sums shall be transferred from the Prior
29 Service Annuity Reserve.
30 In the event the total monies available in the
31 Supplementary Payment Reserve from the preceding indicated
32 sources are insufficient to make the total payments to all
33 persons entitled to such increases for the year, a
34 proportionate amount computed as the ratio of the monies
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1 available to the total of the total payments for that year
2 shall be paid to each person for that year.
3 The Fund shall be obligated for the payment of the
4 increases in annuity as provided for in this Section only to
5 the extent that the assets for such purpose, as specified
6 herein, are available.
7 (Source: P.A. 83-1362.)
8 (40 ILCS 5/9-146.2 new)
9 Sec. 9-146.2. Automatic annual increase in widow's
10 annuity.
11 (a) Every widow's annuity, other than a term annuity,
12 shall be increased by an amount equal to 3% of the original
13 amount of the annuity on January 1, 1998 or the January 1
14 occurring on or immediately after the first anniversary of
15 the deceased employee's death, whichever occurs later, and on
16 each January 1 thereafter.
17 (b) Limitations on the maximum amount of widow's annuity
18 imposed under Section 9-150 do not apply to the annual
19 increases provided under this Section.
20 (c) The increases provided under this Section also apply
21 to compensation annuities and supplemental annuities payable
22 under Section 9-147. The increases provided under this
23 Section do not apply to term annuities.
24 (40 ILCS 5/9-179.3) (from Ch. 108 1/2, par. 9-179.3)
25 Sec. 9-179.3. Optional plan of additional benefits and
26 contributions.
27 (a) While this plan is in effect, an employee may
28 establish additional optional credit for additional optional
29 benefits by electing in writing at any time to make
30 additional optional contributions. The employee may
31 discontinue making the additional optional contributions at
32 any time by notifying the fund in writing.
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1 (b) Additional optional contributions for the additional
2 optional benefits shall be as follows:
3 (1) For service after the option is elected, an
4 additional contribution of 3% of salary shall be
5 contributed to the fund on the same basis and under the
6 same conditions as contributions required under Sections
7 9-170 and 9-176.
8 (2) For service before the option is elected, an
9 additional contribution of 3% of the salary for the
10 applicable period of service, plus interest at the
11 effective rate from the date of service to the date of
12 payment. All payments for past service must be paid in
13 full before credit is given. No additional optional
14 contributions may be made for any period of service for
15 which credit has been previously forfeited by acceptance
16 of a refund, unless the refund is repaid in full with
17 interest at the effective rate from the date of refund to
18 the date of repayment.
19 (c) Additional optional benefits shall accrue for all
20 periods of eligible service for which additional
21 contributions are paid in full. The additional benefit shall
22 consist of an additional 1% for each year of service for
23 which optional contributions have been paid, based on the
24 highest average annual salary for any 4 consecutive years
25 within the last 10 years of service immediately preceding the
26 date of withdrawal, to be added to the employee retirement
27 annuity benefits as otherwise computed under this Article.
28 The calculation of these additional benefits shall be subject
29 to the same terms and conditions as are used in the
30 calculation of retirement annuity under Section 9-134. The
31 additional benefit shall be included in the calculation of
32 the automatic annual increase in annuity, and in the
33 calculation of widow's annuity, where applicable. However no
34 additional benefits will be granted which produce a total
HB2047 Engrossed -50- LRB9004280EGfg
1 annuity greater than the applicable maximum established for
2 that type of annuity in this Article, and additional benefits
3 shall not apply to any benefit computed under Section
4 9-128.1.
5 (d) Refunds of additional optional contributions shall
6 be made on the same basis and under the same conditions as
7 provided under Sections 9-164, 9-166 and 9-167. Interest
8 shall be credited at the effective rate on the same basis and
9 under the same conditions as for other contributions.
10 (e) Optional contributions shall be accounted for in a
11 separate Optional Contribution Reserve.
12 (f) The tax levy, computed under Section 9-169, shall be
13 based on employee contributions including the amount of
14 optional additional employee contributions.
15 (g) Service eligible under this Section may include only
16 service as an employee of the County as defined in Section
17 9-108, and subject to Sections 9-219 and 9-220. No service
18 granted under Section 9-121.1, 9-121.4 or 9-179.2 shall be
19 eligible for optional service credit. No optional service
20 credit may be established for any military service, or for
21 any service under any other Article of this Code. Optional
22 service credit may be established for any period of
23 disability paid from this fund, if the employee makes
24 additional optional contributions for such periods of
25 disability.
26 (h) This plan of optional benefits and contributions
27 shall not apply to any former county employee receiving an
28 annuity from the fund, who re-enters service as a County
29 employee, unless he renders at least 3 years of additional
30 service after the date of re-entry.
31 (i) The effective date of the optional plan of
32 additional benefits and contributions shall be July 1, 1985,
33 or the date upon which approval is received from the Internal
34 Revenue Service, whichever is later.
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1 (j) This plan of additional benefits and contributions
2 shall expire July 1, 2002 1997. No additional contributions
3 may be made after that date, and no additional benefits will
4 accrue after that date.
5 (Source: P.A. 86-1027; 87-794.)
6 (40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
7 Sec. 11-134. Minimum annuities.
8 (a) An employee whose withdrawal occurs after July 1,
9 1957 at age 60 or over, with 20 or more years of service, (as
10 service is defined or computed in Section 11-216), for whom
11 the age and service and prior service annuity combined is
12 less than the amount stated in this section, shall, from and
13 after the date of withdrawal, in lieu of all annuities
14 otherwise provided in this Article, be entitled to receive an
15 annuity for life of an amount equal to 1 2/3% for each year
16 of service, of the highest average annual salary for any 5
17 consecutive years within the last 10 years of service
18 immediately preceding the date of withdrawal; provided, that
19 in the case of any employee who withdraws on or after July 1,
20 1971, such employee age 60 or over with 20 or more years of
21 service, shall be entitled to instead receive an annuity for
22 life equal to 1.67% for each of the first 10 years of
23 service; 1.90% for each of the next 10 years of service;
24 2.10% for each year of service in excess of 20 but not
25 exceeding 30; and 2.30% for each year of service in excess of
26 30, based on the highest average annual salary for any 4
27 consecutive years within the last 10 years of service
28 immediately preceding the date of withdrawal.
29 An employee who withdraws after July 1, 1957 and before
30 January 1, 1988, with 20 or more years of service, before age
31 60, shall be entitled to an annuity, to begin not earlier
32 than age 55, if under such age at withdrawal, as computed in
33 the last preceding paragraph, reduced 0.25% if the employee
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1 was born before January 1, 1936, or 0.5% if the employee was
2 born on or after January 1, 1936, for each full month or
3 fractional part thereof that his attained age when such
4 annuity is to begin is less than 60.
5 Any employee born before January 1, 1936 who withdraws
6 with 20 or more years of service, and any employee with 20 or
7 more years of service who withdraws on or after January 1,
8 1988, may elect to receive, in lieu of any other employee
9 annuity provided in this Section, an annuity for life equal
10 to 1.80% for each of the first 10 years of service, 2.00% for
11 each of the next 10 years of service, 2.20% for each year of
12 service in excess of 20, but not exceeding 30, and 2.40% for
13 each year of service in excess of 30, of the highest average
14 annual salary for any 4 consecutive years within the last 10
15 years of service immediately preceding the date of
16 withdrawal, to begin not earlier than upon attained age of 55
17 years, if under such age at withdrawal, reduced 0.25% for
18 each full month or fractional part thereof that his attained
19 age when annuity is to begin is less than 60; except that an
20 employee retiring on or after January 1, 1988, at age 55 or
21 over but less than age 60, having at least 35 years of
22 service, or an employee retiring on or after July 1, 1990, at
23 age 55 or over but less than age 60, having at least 30 years
24 of service, or an employee retiring on or after the effective
25 date of this amendatory Act of 1997, at age 55 or over but
26 less than age 60, having at least 25 years of service, shall
27 not be subject to the reduction in retirement annuity because
28 of retirement below age 60.
29 However, in the case of an employee who retired on or
30 after January 1, 1985 but before January 1, 1988, at age 55
31 or older and with at least 35 years of service, and who was
32 subject under this subsection (a) to the reduction in
33 retirement annuity because of retirement below age 60, that
34 reduction shall cease to be effective January 1, 1991, and
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1 the retirement annuity shall be recalculated accordingly.
2 Any employee who withdraws on or after July 1, 1990, with
3 20 or more years of service, may elect to receive, in lieu of
4 any other employee annuity provided in this Section, an
5 annuity for life equal to 2.20% for each year of service of
6 the highest average annual salary for any 4 consecutive years
7 within the last 10 years of service immediately preceding the
8 date of withdrawal, to begin not earlier than upon attained
9 age of 55 years, if under such age at withdrawal, reduced
10 0.25% for each full month or fractional part thereof that his
11 attained age when annuity is to begin is less than 60; except
12 that an employee retiring at age 55 or over but less than age
13 60, having at least 30 years of service, shall not be subject
14 to the reduction in retirement annuity because of retirement
15 below age 60.
16 Any employee who withdraws on or after the effective date
17 of this amendatory Act of 1997 with 20 or more years of
18 service may elect to receive, in lieu of any other employee
19 annuity provided in this Section, an annuity for life equal
20 to 2.20%, for each year of service, of the highest average
21 annual salary for any 4 consecutive years within the last 10
22 years of service immediately preceding the date of
23 withdrawal, to begin not earlier than upon attainment of age
24 55 (age 50 if the employee has at least 30 years of service),
25 reduced 0.25% for each full month or remaining fractional
26 part thereof that the employee's attained age when annuity is
27 to begin is less than 60; except that an employee retiring at
28 age 50 or over with at least 30 years of service or at age 55
29 or over with at least 25 years of service shall not be
30 subject to the reduction in retirement annuity because of
31 retirement below age 60.
32 The maximum annuity payable under this paragraph (a) of
33 this Section shall not exceed 70% of highest average annual
34 salary in the case of an employee who withdraws prior to July
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1 1, 1971, and 75% if withdrawal takes place on or after July
2 1, 1971. For the purpose of the minimum annuity provided in
3 said paragraphs $1,500 shall be considered the minimum annual
4 salary for any year; and the maximum annual salary to be
5 considered for the computation of such annuity shall be
6 $4,800 for any year prior to 1953, $6,000 for the years 1953
7 to 1956, inclusive, and the actual annual salary, as salary
8 is defined in this Article, for any year thereafter.
9 (b) For an employee receiving disability benefit, his
10 salary for annuity purposes under this section shall, for all
11 periods of disability benefit subsequent to the year 1956, be
12 the amount on which his disability benefit was based.
13 (c) An employee with 20 or more years of service, whose
14 entire disability benefit credit period expires prior to
15 attainment of age 55 while still disabled for service, shall
16 be entitled upon withdrawal to the larger of (1) the minimum
17 annuity provided above assuming that he is then age 55, and
18 reducing such annuity to its actuarial equivalent at his
19 attained age on such date, or (2) the annuity provided from
20 his age and service and prior service annuity credits.
21 (d) The minimum annuity provisions as aforesaid shall
22 not apply to any former employee receiving an annuity from
23 the fund, and who re-enters service as an employee, unless he
24 renders at least 3 years of additional service after the date
25 of re-entry.
26 (e) An employee in service on July 1, 1947, or who
27 became a contributor after July 1, 1947 and prior to July 1,
28 1950, or who shall become a contributor to the fund after
29 July 1, 1950 prior to attainment of age 70, who withdraws
30 after age 65 with less than 20 years of service, for whom the
31 annuity has been fixed under the foregoing sections of this
32 Article shall, in lieu of the annuity so fixed, receive an
33 annuity as follows:
34 Such amount as he could have received had the accumulated
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1 amounts for annuity been improved with interest at the
2 effective rate to the date of his withdrawal, or to
3 attainment of age 70, whichever is earlier, and had the city
4 contributed to such earlier date for age and service annuity
5 the amount that would have been contributed had he been under
6 age 65, after the date his annuity was fixed in accordance
7 with this Article, and assuming his annuity were computed
8 from such accumulations as of his age on such earlier date.
9 The annuity so computed shall not exceed the annuity which
10 would be payable under the other provisions of this section
11 if the employee was credited with 20 years of service and
12 would qualify for annuity thereunder.
13 (f) In lieu of the annuity provided in this or in any
14 other section of this Article, an employee having attained
15 age 65 with at least 15 years of service who withdraws from
16 service on or after July 1, 1971 and whose annuity computed
17 under other provisions of this Article is less than the
18 amount provided under this paragraph shall be entitled to
19 receive a minimum annual annuity for life equal to 1% of the
20 highest average annual salary for any 4 consecutive years
21 within the last 10 years of service immediately preceding
22 retirement for each year of his service plus the sum of $25
23 for each year of service. Such annual annuity shall not
24 exceed the maximum percentages stated under paragraph (a) of
25 this Section of such highest average annual salary.
26 (g) Any annuity payable under the preceding subsections
27 of this Section 11-134 shall be paid in equal monthly
28 installments.
29 (h) The amendatory provisions of part (a) and (f) of
30 this Section shall be effective July 1, 1971 and apply in the
31 case of every qualifying employee withdrawing on or after
32 July 1, 1971.
33 (i) The amendatory provisions of this amendatory Act of
34 1985 relating to the discount of annuity because of
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1 retirement prior to attainment of age 60 and increasing the
2 retirement formula for those born before January 1, 1936,
3 shall apply only to qualifying employees withdrawing on or
4 after August 16, 1985.
5 (j) Beginning on the effective date of this amendatory
6 Act of 1997 January 1, 1991, the minimum amount of employee's
7 annuity shall be $550 $350 per month for life for the
8 following classes of employees, without regard to the fact
9 that withdrawal occurred prior to the effective date of this
10 amendatory Act of 1997 January 1, 1991:
11 (1) any employee annuitant alive and receiving a
12 life annuity on the effective date of this amendatory Act
13 of 1997 January 1, 1991, except a reciprocal annuity;
14 (2) any employee annuitant alive and receiving a
15 term annuity on the effective date of this amendatory Act
16 of 1997 January 1, 1991, except a reciprocal annuity;
17 (3) any employee annuitant alive and receiving a
18 reciprocal annuity on the effective date of this
19 amendatory Act of 1997 January 1, 1991, whose service in
20 this fund is at least 5 years;
21 (4) any employee annuitant withdrawing after age 60
22 on or after the effective date of this amendatory Act of
23 1997 January 1, 1991, with at least 10 years of service
24 in this fund.
25 The increases granted under items (1), (2) and (3) of
26 this subsection (j) shall not be limited by any other Section
27 of this Act.
28 (Source: P.A. 85-964; 86-1488.)
29 (40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
30 Sec. 11-145.1. Minimum annuities for widows. The widow
31 otherwise eligible for widow's annuity under other Sections
32 of this Article 11, of an employee hereinafter described, who
33 retires from service or dies while in the service subsequent
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1 to the effective date of this amendatory provision, and for
2 which widow the amount of widow's annuity and widow's prior
3 service annuity combined, fixed or provided for such widow
4 under other provisions of said Article 11 is less than the
5 amount hereinafter provided in this section, shall, from and
6 after the date her otherwise provided annuity would begin, in
7 lieu of such otherwise provided widow's and widow's prior
8 service annuity, be entitled to the following indicated
9 amount of annuity:
10 (a) The widow of any employee who dies while in service
11 on or after the date on which he attains age 60 if the death
12 occurs before July 1, 1990, or on or after the date on which
13 he attains age 55 if the death occurs on or after July 1,
14 1990, with at least 20 years of service, or on or after the
15 date on which he attains age 50 if the death occurs on or
16 after the effective date of this amendatory Act of 1997 with
17 at least 30 years of service, shall be entitled to an annuity
18 equal to one-half of the amount of annuity which her deceased
19 husband would have been entitled to receive had he withdrawn
20 from the service on the day immediately preceding the date of
21 his death, conditional upon such widow having attained age 60
22 on or before such date if the death occurs before July 1,
23 1990, or age 55 if the death occurs on or after July 1, 1990.
24 The widow's annuity shall not, however, exceed the sum of
25 $500 a month if the employee's death in service occurs before
26 January 23, 1987. The widow's annuity shall not be limited
27 to a maximum dollar amount if the employee's death in service
28 occurs on or after January 23, 1987.
29 If the employee dies in service before July 1, 1990, and
30 if such widow of such described employee shall not be 60 or
31 more years of age on such date of death, the amount provided
32 in the immediately preceding paragraph for a widow 60 or more
33 years of age, shall, in the case of such younger widow, be
34 reduced by 0.25% for each month that her then attained age is
HB2047 Engrossed -58- LRB9004280EGfg
1 less than 60 years if the employee was born before January 1,
2 1936, or dies in service on or after January 1, 1988, or 0.5%
3 for each month that her then attained age is less than 60
4 years if the employee was born on or after January 1, 1936
5 and dies in service before January 1, 1988.
6 If the employee dies in service on or after July 1, 1990,
7 and if the widow of the employee has not attained age 55 on
8 or before the employee's date of death, the amount otherwise
9 provided in this subsection (a) shall be reduced by 0.25% for
10 each month that her then attained age is less than 55 years.
11 (b) The widow of any employee who dies subsequent to the
12 date of his retirement on annuity, and who so retired on or
13 after the date on which he attained age 60 if retirement
14 occurs before July 1, 1990, or on or after the date on which
15 he attained age 55 if retirement occurs on or after July 1,
16 1990, with at least 20 years of service, or on or after the
17 date on which he attained age 50 if the retirement occurs on
18 or after the effective date of this amendatory Act of 1997
19 with at least 30 years of service, shall be entitled to an
20 annuity equal to one-half of the amount of annuity which her
21 deceased husband received as of the date of his retirement on
22 annuity, conditional upon such widow having attained age 60
23 on or before the date of her husband's retirement on annuity
24 if retirement occurs before July 1, 1990, or age 55 if
25 retirement occurs on or after July 1, 1990. Such amount of
26 widow's annuity shall not, however, exceed the sum of $500 a
27 month if the employee's death occurs before January 23, 1987.
28 The widow's annuity shall not be limited to a maximum dollar
29 amount if the employee's death occurs on or after January 23,
30 1987, regardless of the date of retirement; provided that, if
31 retirement was before January 23, 1987, the employee or
32 eligible spouse repays the excess spouse refund with interest
33 at the effective rate from the date of refund to the date of
34 repayment.
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1 If the date of the employee's retirement on annuity is
2 before July 1, 1990, and if such widow of such described
3 employee shall not have attained such age of 60 or more years
4 on such date of her husband's retirement on annuity, the
5 amount provided in the immediately preceding paragraph for a
6 widow 60 or more years of age on the date of her husband's
7 retirement on annuity, shall, in the case of such then
8 younger widow, be reduced by 0.25% for each month that her
9 then attained age was less than 60 years if the employee was
10 born before January 1, 1936, or withdraws from service on or
11 after January 1, 1988, or 0.5% for each month that her then
12 attained age was less than 60 years if the employee was born
13 on or after January 1, 1936 and withdraws from service before
14 January 1, 1988.
15 If the date of the employee's retirement on annuity is on
16 or after July 1, 1990, and if the widow of the employee has
17 not attained age 55 by the date of the employee's retirement
18 on annuity, the amount otherwise provided in this subsection
19 (b) shall be reduced by 0.25% for each month that her then
20 attained age is less than 55 years.
21 (c) The foregoing provisions relating to minimum
22 annuities for widows shall not apply to the widow of any
23 former employee receiving an annuity from the fund on August
24 2, 1965 or on the effective date of this amendatory
25 provision, who re-enters service as a former employee, unless
26 such employee renders at least 3 years of additional service
27 after the date of re-entry.
28 (d) The amendatory provisions of part (a) and (b) of
29 this Section (increasing the maximum from $300 to $400 a
30 month) shall be effective as of July 1, 1971, and apply in
31 the case of every qualifying widow whose husband dies while
32 in service on or after July 1, 1971 and prior to January 1,
33 1984, or withdraws and enters on annuity on or after July 1,
34 1971 and prior to January 1, 1984.
HB2047 Engrossed -60- LRB9004280EGfg
1 (e) The changes made in parts (a) and (b) of this
2 Section by this amendatory Act of 1983 (increasing the
3 maximum from $400 to $500 per month) shall apply to every
4 qualifying widow whose husband dies in the service on or
5 after January 1, 1984, or withdraws and enters on annuity on
6 or after January 1, 1984.
7 (f) The amendments to this Section by this amendatory
8 Act of 1985, relating to changing the discount because of age
9 from 1/2 of 1% to 0.25% per month for widows of employees
10 born before January 1, 1936, shall apply only to qualifying
11 widows whose husbands die while in the service on or after
12 August 16, 1985 or withdraw and enter on annuity on or after
13 August 16, 1985.
14 (g) Beginning on the effective date of this amendatory
15 Act of 1997 January 1, 1991, the minimum amount of widow's
16 annuity shall be $500 $300 per month for life for the
17 following classes of widows, without regard to the fact that
18 the death of the employee occurred prior to the effective
19 date of this amendatory Act of 1997 January 1, 1991:
20 (1) any widow annuitant alive and receiving a term
21 annuity on the effective date of this amendatory Act of
22 1997 January 1, 1991, except a reciprocal annuity;
23 (2) any widow annuitant alive and receiving a life
24 annuity on the effective date of this amendatory Act of
25 1997 January 1, 1991, except a reciprocal annuity;
26 (3) any widow annuitant alive and receiving a
27 reciprocal annuity on the effective date of this
28 amendatory Act of 1997 January 1, 1991, whose employee
29 spouse's service in this fund was at least 5 years;
30 (4) the widow of an employee with at least 10 years
31 of service in this fund who dies after retirement, if the
32 retirement occurred prior to the effective date of this
33 amendatory Act of 1997 January 1, 1991;
34 (5) the widow of an employee with at least 10 years
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1 of service in this fund who dies after retirement, if
2 withdrawal occurs on or after the effective date of this
3 amendatory Act of 1997 January 1, 1991;
4 (6) the widow of an employee who dies in service
5 with at least 5 years of service in this fund, if the
6 death in service occurs on or after the effective date of
7 this amendatory Act of 1997 January 1, 1991.
8 The increases granted under items (1), (2), (3) and (4)
9 of this subsection (g) shall not be limited by any other
10 Section of this Act.
11 (h) The widow of an employee who retired or died in
12 service on or after January 1, 1985 and before July 1, 1990,
13 at age 55 or older, and with at least 35 years of service
14 credit, shall be entitled to have her widow's annuity
15 increased, effective January 1, 1991, to an amount equal to
16 50% of the retirement annuity that the deceased employee
17 received on the date of retirement, or would have been
18 eligible to receive if he had retired on the day preceding
19 the date of his death in service, provided that if the widow
20 had not attained age 60 by the date of the employee's
21 retirement or death in service, the amount of the annuity
22 shall be reduced by 0.25% for each month that her then
23 attained age was less than age 60 if the employee's
24 retirement or death in service occurred on or after January
25 1, 1988, or by 0.5% for each month that her attained age is
26 less than age 60 if the employee's retirement or death in
27 service occurred prior to January 1, 1988. However, in cases
28 where a refund of excess contributions for widow's annuity
29 has been paid by the Fund, the increase in benefit provided
30 by this subsection (h) (i) shall be contingent upon repayment
31 of the refund to the Fund with interest at the effective rate
32 from the date of refund to the date of payment.
33 (i) If a deceased employee is receiving a retirement
34 annuity at the time of death and that death occurs on or
HB2047 Engrossed -62- LRB9004280EGfg
1 after the effective date of this amendatory Act of 1997, the
2 widow may elect to receive, in lieu of any other annuity
3 provided under this Article, 50% of the deceased employee's
4 retirement annuity at the time of death reduced by 0.25% for
5 each month that the widow's age on the date of death is less
6 than 55. However, in cases where a refund of excess
7 contributions for widow's annuity has been paid by the Fund,
8 the benefit provided by this subsection (i) is contingent
9 upon repayment of the refund to the Fund with interest at the
10 effective rate from the date of refund to the date of
11 payment.
12 (Source: P.A. 85-964; 86-1488.)
13 (40 ILCS 5/11-154) (from Ch. 108 1/2, par. 11-154)
14 Sec. 11-154. Amount of child's annuity. Beginning on
15 the effective date of this amendatory Act of 1997 January 1,
16 1988, the amount of a child's annuity shall be $220 $120 per
17 month for each child while the spouse of the deceased
18 employee parent survives, and $250 $150 per month for each
19 child when no such spouse survives, and shall be subject to
20 the following limitations:
21 (1) If the combined annuities for the widow and children
22 of an employee whose death resulted from injury incurred in
23 the performance of duty, or for the children where a widow
24 does not exist, exceed 70% of the employee's final monthly
25 salary, the annuity for each child shall be reduced pro rata
26 so that the combined annuities for the family shall not
27 exceed such limitation;
28 (2) For the family of an employee whose death is the
29 result of any cause other than injury incurred in the
30 performance of duty, in which the combined annuities for the
31 family exceed 60% of the employee's final monthly salary, the
32 annuity for each child shall be reduced pro rata so that the
33 combined annuities for the family shall not exceed such
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1 limitation.
2 A child's annuity shall be paid to the parent who is
3 providing for the child, unless another person has been
4 appointed the child's legal guardian.
5 The increase in child's annuity provided by this
6 amendatory Act of 1997 1987 shall apply to all child's
7 annuities being paid on or after the effective date of this
8 amendatory Act of 1997. January 1, 1988, subject to The above
9 limitations on the combined annuities for a family in parts
10 (1) and (2) of this Section do not apply to families of
11 employees who died before the effective date of this
12 amendatory Act of 1997.
13 (Source: P.A. 85-964.)
14 (40 ILCS 5/11-160.1) (from Ch. 108 1/2, par. 11-160.1)
15 Sec. 11-160.1. Group health benefit.
16 (a) For the purposes of this Section: (1) "annuitant"
17 means a person receiving an age and service annuity, a prior
18 service annuity, a widow's annuity, a widow's prior service
19 annuity, or a minimum annuity on or after January 1, 1988,
20 under Article 5, 6, 8 or 11, by reason of previous employment
21 by the City of Chicago (hereinafter, in this Section, "the
22 city"); (2) "Medicare Plan annuitant" means an annuitant
23 described in item (1) who is eligible for Medicare benefits;
24 and (3) "non-Medicare Plan annuitant" means an annuitant
25 described in item (1) who is not eligible for Medicare
26 benefits.
27 (b) The city shall continue to offer group health
28 benefits to annuitants and their eligible dependents through
29 June 30, 2002. The same basic city health care plan
30 available as of June 30, 1988 (hereinafter called the basic
31 city plan) shall cease to be a plan offered by the city,
32 except as specified in subparagraphs (4) and (5) below, and
33 shall be closed to new enrollment or transfer of coverage for
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1 any non-Medicare Plan annuitant as of the effective date of
2 this amendatory Act of 1997. The city shall offer
3 non-Medicare Plan annuitants and their eligible dependents
4 the option of enrolling in its Annuitant Preferred Provider
5 Plan, and may offer additional plans for any annuitant. The
6 city may amend, modify, or terminate any of its additional
7 plans at its sole discretion. If the city offers more than
8 one annuitant plan, the city shall allow annuitants to
9 convert coverage from one city annuitant plan to another,
10 except the basic city plan, during times designated by the
11 city, which periods of time shall occur at least annually.
12 For the period dating from the effective date of this
13 amendatory Act of 1997 through June 30, 2002, monthly premium
14 rates may be increased for annuitants during the time of
15 their participation in non-Medicare plans, except as provided
16 in subparagraphs (1) through (4) of this subsection.
17 (1) For non-Medicare Plan annuitants who retired
18 prior to January 1, 1988, the annuitant's share of
19 monthly premium for non-Medicare Plan coverage only shall
20 not exceed the highest premium rate chargeable under any
21 city non-Medicare Plan annuitant coverage as of December
22 1, 1996.
23 (2) For non-Medicare Plan annuitants who retire on
24 or after January 1, 1988, the annuitant's share of
25 monthly premium for non-Medicare Plan coverage only shall
26 be the rate in effect on December 1, 1996, with monthly
27 premium increases to take effect no sooner than April 1,
28 1998 at the lower of (i) the premium rate determined
29 pursuant to subsection (g) or (ii) 10% of the immediately
30 previous month's rate for similar coverage.
31 (3) In no event shall any non-Medicare Plan
32 annuitant's share of monthly premium for non-Medicare
33 Plan coverage exceed 10% of the annuitant's monthly
34 annuity.
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1 (4) Non-Medicare Plan annuitants who are enrolled
2 in the basic city plan as of July 1, 1998 may remain in
3 the basic city plan, if they so choose, on the condition
4 that they are not entitled to the caps on rates set forth
5 in subparagraphs (1) through (3), and their premium rate
6 shall be the rate determined in accordance with
7 subsections (c) and (g).
8 (5) Medicare Plan annuitants who are currently
9 enrolled in the basic city plan for Medicare eligible
10 annuitants may remain in that plan, if they so choose,
11 through June 30, 2002. Annuitants shall not be allowed
12 to enroll in or transfer into the basic city plan for
13 Medicare eligible annuitants on or after July 1, 1999.
14 The city shall continue to offer annuitants a
15 supplemental Medicare Plan for Medicare eligible
16 annuitants through June 30, 2002, and the city may offer
17 additional plans to Medicare eligible annuitants in its
18 sole discretion. All Medicare Plan annuitant monthly
19 rates shall be determined in accordance with subsections
20 (c) and (g).
21 (c) Effective the date the initial increased annuitant
22 payments pursuant to subsection (g) take effect, The city
23 shall pay 50% of the aggregated costs of the claims or
24 premiums, whichever is applicable, as determined in
25 accordance with subsection (g), of annuitants and their
26 dependents under all health care plans offered by the city.
27 The city may reduce its obligation by application of price
28 reductions obtained as a result of financial arrangements
29 with providers or plan administrators. The claims or
30 premiums of all annuitants and their dependents under all of
31 the plans offered by the city shall be aggregated for the
32 purpose of calculating the city's payment required under this
33 subsection, as well as for the setting of rates of payment
34 for annuitants as required under subsection (g).
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1 (d) From January 1, 1988 until December 31, 1992, the
2 board shall pay to the city on behalf of each of the board's
3 annuitants who chooses to participate in any of the city's
4 plans the following amounts: up to a maximum of $65 per month
5 for each such annuitant who is not qualified to receive
6 medicare benefits, and up to a maximum of $35 per month for
7 each such annuitant who is qualified to receive medicare
8 benefits. From January 1, 1993 until June 30, 2002 December
9 31, 1997, the board shall pay to the city on behalf of each
10 of the board's annuitants who chooses to participate in any
11 of the city's plans the following amounts: up to a maximum of
12 $75 per month for each such annuitant who is not qualified to
13 receive medicare benefits, and up to a maximum of $45 per
14 month for each such annuitant who is qualified to receive
15 medicare benefits.
16 For the period January 1, 1988 through the effective date
17 of this amendatory Act of 1989, payments under this Section
18 shall be reduced by the amounts paid by or on behalf of the
19 board's annuitants covered during that period.
20 The payments described in this subsection shall be paid
21 from the tax levy authorized under Section 11-178; such
22 amounts shall be credited to the reserve for group hospital
23 care and group medical and surgical plan benefits, and all
24 payments to the city required under this subsection shall be
25 charged against it.
26 (e) The city's obligations under subsections (b) and (c)
27 shall terminate on June 30, 2002 December 31, 1997, except
28 with regard to covered expenses incurred but not paid as of
29 that date. This subsection shall not affect other
30 obligations that may be imposed by law.
31 (f) The group coverage plans described in this Section
32 are not and shall not be construed to be pension or
33 retirement benefits for purposes of Section 5 of Article XIII
34 of the Illinois Constitution of 1970.
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1 (g) For each annuitant plan offered by the city, the
2 aggregate cost of claims, as reflected in the claim records
3 of the plan administrator, and premiums for each calendar
4 year from 1989 through 1997 of all annuitants and dependents
5 covered by the city's group health care plans shall be
6 estimated by the city, based upon a written determination by
7 a qualified independent actuary to be appointed and paid by
8 the city and the board. If the such estimated annual cost
9 for each annuitant plan offered by the city is more than the
10 estimated amount to be contributed by the city for that plan
11 pursuant to subsections (b) and (c) during that year plus the
12 estimated amounts to be paid pursuant to subsection (d) and
13 by the other pension boards on behalf of other participating
14 annuitants, the difference shall be paid by all participating
15 annuitants participating in the plan, except as provided in
16 subsection (b). The city, based upon the determination of
17 the independent actuary, shall set the monthly amounts to be
18 paid by the participating annuitants. The initial
19 determination of such payments shall be prospective only and
20 shall be based upon the estimated costs for the balance of
21 the year. The board may deduct the amounts to be paid by its
22 annuitants from the participating annuitants' monthly
23 annuities.
24 If it is determined from the city's annual audit, or from
25 audited experience data, that the total amount paid by all
26 participating annuitants was more or less than the difference
27 between (1) the cost of providing the group health care
28 plans, and (2) the sum of the amount to be paid by the city
29 as determined under subsection (c) and the amounts paid by
30 all the pension boards, then the independent actuary and the
31 city shall account for the excess or shortfall in the next
32 year's payments by annuitants, except as provided in
33 subsection (b).
34 (h) An annuitant may elect to terminate coverage in a
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1 plan at the end of any month any time, which election shall
2 terminate the annuitant's obligation to contribute toward
3 payment of the excess described in subsection (g).
4 (i) The city shall advise the board of all proposed
5 premium increases for health care at least 75 days prior to
6 the effective date of the change, and any increase shall be
7 prospective only.
8 (Source: P.A. 86-273.)
9 (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
10 Sec. 14-104. Service for which contributions permitted.
11 Contributions provided for in this Section shall cover the
12 period of service granted, and be based upon employee's
13 compensation and contribution rate in effect on the date he
14 last became a member of the System; provided that for all
15 employment prior to January 1, 1969 the contribution rate
16 shall be that in effect for a noncovered employee on the date
17 he last became a member of the System. Contributions
18 permitted under this Section shall include regular interest
19 from the date an employee last became a member of the System
20 to date of payment.
21 These contributions must be paid in full before
22 retirement either in a lump sum or in installment payments in
23 accordance with such rules as may be adopted by the board.
24 (a) Any member may make contributions as required in
25 this Section for any period of service, subsequent to the
26 date of establishment, but prior to the date of membership.
27 (b) Any employee who had been previously excluded from
28 membership because of age at entry and subsequently became
29 eligible may elect to make contributions as required in this
30 Section for the period of service during which he was
31 ineligible.
32 (c) An employee of the Department of Insurance who,
33 after January 1, 1944 but prior to becoming eligible for
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1 membership, received salary from funds of insurance companies
2 in the process of rehabilitation, liquidation, conservation
3 or dissolution, may elect to make contributions as required
4 in this Section for such service.
5 (d) Any employee who rendered service in a State office
6 to which he was elected, or rendered service in the elective
7 office of Clerk of the Appellate Court prior to the date he
8 became a member, may make contributions for such service as
9 required in this Section. Any member who served by
10 appointment of the Governor under the Civil Administrative
11 Code of Illinois and did not participate in this System may
12 make contributions as required in this Section for such
13 service.
14 (e) Any person employed by the United States government
15 or any instrumentality or agency thereof from January 1, 1942
16 through November 15, 1946 as the result of a transfer from
17 State service by executive order of the President of the
18 United States shall be entitled to prior service credit
19 covering the period from January 1, 1942 through December 31,
20 1943 as provided for in this Article and to membership
21 service credit for the period from January 1, 1944 through
22 November 15, 1946 by making the contributions required in
23 this Section. A person so employed on January 1, 1944 but
24 whose employment began after January 1, 1942 may qualify for
25 prior service and membership service credit under the same
26 conditions.
27 (f) An employee of the Department of Labor of the State
28 of Illinois who performed services for and under the
29 supervision of that Department prior to January 1, 1944 but
30 who was compensated for those services directly by federal
31 funds and not by a warrant of the Auditor of Public Accounts
32 paid by the State Treasurer may establish credit for such
33 employment by making the contributions required in this
34 Section. An employee of the Department of Agriculture of the
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1 State of Illinois, who performed services for and under the
2 supervision of that Department prior to June 1, 1963, but was
3 compensated for those services directly by federal funds and
4 not paid by a warrant of the Auditor of Public Accounts paid
5 by the State Treasurer, and who did not contribute to any
6 other public employee retirement system for such service, may
7 establish credit for such employment by making the
8 contributions required in this Section.
9 (g) Any employee who executed a waiver of membership
10 within 60 days prior to January 1, 1944 may, at any time
11 while in the service of a department, file with the board a
12 rescission of such waiver. Upon making the contributions
13 required by this Section, the member shall be granted the
14 creditable service that would have been received if the
15 waiver had not been executed.
16 (h) Until May 1, 1990, an employee who was employed on a
17 full-time basis by a regional planning commission for at
18 least 5 continuous years may establish creditable service for
19 such employment by making the contributions required under
20 this Section, provided that any credits earned by the
21 employee in the commission's retirement plan have been
22 terminated.
23 (i) Any person who rendered full time contractual
24 services to the General Assembly as a member of a legislative
25 staff may establish service credit for up to 8 years of such
26 services by making the contributions required under this
27 Section, provided that application therefor is made not later
28 than July 1, 1991.
29 (j) By paying the contributions otherwise required under
30 this Section, plus an amount determined by the Board to be
31 equal to the employer's normal cost of the benefit plus
32 interest, an employee may establish service credit for a
33 period of up to 2 years spent in active military service for
34 which he does not qualify for credit under Section 14-105,
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1 provided that (1) he was not dishonorably discharged from
2 such military service, and (2) the amount of service credit
3 established by a member under this subsection (j), when added
4 to the amount of military service credit granted to the
5 member under subsection (b) of Section 14-105, shall not
6 exceed 5 years.
7 (k) An employee who was employed on a full-time basis by
8 the Illinois State's Attorneys Association Statewide
9 Appellate Assistance Service LEAA-ILEC grant project prior to
10 the time that project became the State's Attorneys Appellate
11 Service Commission, now the Office of the State's Attorneys
12 Appellate Prosecutor, an agency of State government, may
13 establish creditable service for not more than 60 months
14 service for such employment by making contributions required
15 under this Section.
16 (l) By paying the contributions otherwise required under
17 this Section, plus an amount determined by the Board to be
18 equal to the employer's normal cost of the benefit plus
19 interest, a member may establish service credit for periods
20 of less than one year spent on authorized leave of absence
21 from service, provided that (1) the period of leave began on
22 or after January 1, 1992 and (2) any credit established by
23 the member for the period of leave in any other public
24 employee retirement system has been terminated. A member may
25 establish service credit under this subsection for more than
26 one period of authorized leave, and in that case the total
27 period of service credit established by the member under this
28 subsection may exceed one year.
29 (Source: P.A. 86-273; 86-1488; 87-794; 87-895; 87-1265.)
30 (40 ILCS 5/14-104.10 new)
31 Sec. 14-104.10. Federal employment. A contributing
32 employee may establish additional service credit for a period
33 of up to 5 years of employment by the United States federal
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1 government for which he or she does not qualify for credit
2 under any other provision of this Article, provided that (1)
3 the amount of service credit established by the person under
4 this Section, when added to the amount of all military
5 service credit granted to the person under this Article,
6 shall not exceed 5 years, and (2) any credit received for the
7 federal employment in any federal or other public pension
8 fund or retirement system has been terminated or
9 relinquished.
10 In order to establish service credit under this Section,
11 the applicant must submit a written application to the
12 System, including such documentation of the federal
13 employment as the Board may require, and pay to the System
14 (1) employee contributions at the rates provided in this
15 Article based upon the person's salary on the last day as a
16 participating employee prior to the federal employment, or on
17 the first day as a participating employee after the federal
18 employment, whichever is greater, plus (2) an amount
19 determined by the Board to be equal to the employer's normal
20 cost of the benefits accrued for the federal employment, plus
21 (3) regular interest on items (1) and (2) from the date of
22 conclusion of the federal service to the date of payment.
23 Contributions must be paid in a single lump sum before the
24 credit is granted. Credit established under this Section may
25 be used for pension purposes only.
26 (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
27 (Text of Section before amendment by P.A. 89-507)
28 Sec. 14-110. Alternative retirement annuity.
29 (a) Any member who has withdrawn from service with not
30 less than 20 years of eligible creditable service and has
31 attained age 55, and any member who has withdrawn from
32 service with not less than 25 years of eligible creditable
33 service and has attained age 50, regardless of whether the
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1 attainment of either of the specified ages occurs while the
2 member is still in service, shall be entitled to receive at
3 the option of the member, in lieu of the regular or minimum
4 retirement annuity, a retirement annuity computed as
5 follows:
6 (i) for periods of service as a noncovered
7 employee, 2 1/4% of final average compensation for each
8 of the first 10 years of creditable service, 2 1/2% for
9 each year above 10 years to and including 20 years of
10 creditable service, and 2 3/4% for each year of
11 creditable service above 20 years; and
12 (ii) for periods of eligible creditable service as
13 a covered employee, 1.67% of final average compensation
14 for each of the first 10 years of such service, 1.90% for
15 each of the next 10 years of such service, 2.10% for each
16 year of such service in excess of 20 but not exceeding
17 30, and 2.30% for each year in excess of 30.
18 Such annuity shall be subject to a maximum of 75% of
19 final average compensation. These rates shall not be
20 applicable to any service performed by a member as a covered
21 employee which is not eligible creditable service. Service
22 as a covered employee which is not eligible creditable
23 service shall be subject to the rates and provisions of
24 Section 14-108.
25 (b) For the purpose of this Section, "eligible
26 creditable service" means creditable service resulting from
27 service in one or more of the following positions:
28 (1) State policeman;
29 (2) fire fighter in the fire protection service of
30 a department;
31 (3) air pilot;
32 (4) special agent;
33 (5) investigator for the Secretary of State;
34 (6) conservation police officer;
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1 (7) investigator for the Department of Revenue;
2 (8) security employee of the Department of Mental
3 Health and Developmental Disabilities;
4 (9) Central Management Services security police
5 officer;
6 (10) security employee of the Department of
7 Corrections;
8 (11) dangerous drugs investigator;
9 (12) investigator for the Department of State
10 Police;
11 (13) investigator for the Office of the Attorney
12 General;
13 (14) controlled substance inspector;
14 (15) investigator for the Office of the State's
15 Attorneys Appellate Prosecutor;
16 (16) Commerce Commission police officer.
17 A person employed in one of the positions specified in
18 this subsection is entitled to eligible creditable service
19 for service credit earned under this Article while undergoing
20 the basic police training course approved by the Illinois
21 Local Governmental Law Enforcement Officers Training Board,
22 if completion of that training is required of persons serving
23 in that position. For the purposes of this Code, service
24 during the required basic police training course shall be
25 deemed performance of the duties of the specified position,
26 even though the person is not a sworn peace officer at the
27 time of the training.
28 (c) For the purposes of this Section:
29 (1) The term "state policeman" includes any title
30 or position in the Department of State Police that is
31 held by an individual employed under the State Police
32 Act.
33 (2) The term "fire fighter in the fire protection
34 service of a department" includes all officers in such
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1 fire protection service including fire chiefs and
2 assistant fire chiefs.
3 (3) The term "air pilot" includes any employee
4 whose official job description on file in the Department
5 of Central Management Services, or in the department by
6 which he is employed if that department is not covered by
7 the Personnel Code, states that his principal duty is the
8 operation of aircraft, and who possesses a pilot's
9 license; however, the change in this definition made by
10 this amendatory Act of 1983 shall not operate to exclude
11 any noncovered employee who was an "air pilot" for the
12 purposes of this Section on January 1, 1984.
13 (4) The term "special agent" means any person who
14 by reason of employment by the Division of Narcotic
15 Control, the Bureau of Investigation or, after July 1,
16 1977, the Division of Criminal Investigation, the
17 Division of Internal Investigation or any other Division
18 or organizational entity in the Department of State
19 Police is vested by law with duties to maintain public
20 order, investigate violations of the criminal law of this
21 State, enforce the laws of this State, make arrests and
22 recover property. The term "special agent" includes any
23 title or position in the Department of State Police that
24 is held by an individual employed under the State Police
25 Act.
26 (5) The term "investigator for the Secretary of
27 State" means any person employed by the Office of the
28 Secretary of State and vested with such investigative
29 duties as render him ineligible for coverage under the
30 Social Security Act by reason of Sections 218(d)(5)(A),
31 218(d)(8)(D) and 218(l)(1) of that Act.
32 A person who became employed as an investigator for
33 the Secretary of State between January 1, 1967 and
34 December 31, 1975, and who has served as such until
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1 attainment of age 60, either continuously or with a
2 single break in service of not more than 3 years
3 duration, which break terminated before January 1, 1976,
4 shall be entitled to have his retirement annuity
5 calculated in accordance with subsection (a),
6 notwithstanding that he has less than 20 years of credit
7 for such service.
8 (6) The term "Conservation Police Officer" means
9 any person employed by the Division of Law Enforcement of
10 the Department of Natural Resources and vested with such
11 law enforcement duties as render him ineligible for
12 coverage under the Social Security Act by reason of
13 Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of
14 that Act. The term "Conservation Police Officer"
15 includes the positions of Chief Conservation Police
16 Administrator and Assistant Conservation Police
17 Administrator.
18 (7) The term "investigator for the Department of
19 Revenue" means any person employed by the Department of
20 Revenue and vested with such investigative duties as
21 render him ineligible for coverage under the Social
22 Security Act by reason of Sections 218(d)(5)(A),
23 218(d)(8)(D) and 218(l)(1) of that Act.
24 (8) The term "security employee of the Department
25 of Mental Health and Developmental Disabilities" means
26 any person employed by the Department of Mental Health
27 and Developmental Disabilities who is employed at the
28 Chester Mental Health Center and has daily contact with
29 the residents thereof, or who is a mental health police
30 officer. "Mental health police officer" means any person
31 employed by the Department of Mental Health and
32 Developmental Disabilities who is vested with such law
33 enforcement duties as render him ineligible for coverage
34 under the Social Security Act by reason of Sections
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1 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
2 (9) "Central Management Services security police
3 officer" means any person employed by the Department of
4 Central Management Services who is vested with such law
5 enforcement duties as render him ineligible for coverage
6 under the Social Security Act by reason of Sections
7 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
8 (10) The term "security employee of the Department
9 of Corrections" means any employee of the Department of
10 Corrections or the former Department of Personnel, and
11 any member or employee of the Prisoner Review Board, who
12 has daily contact with inmates by working within a
13 correctional facility or who is a parole officer or an
14 employee who has direct contact with committed persons in
15 the performance of his or her job duties.
16 (11) The term "dangerous drugs investigator" means
17 any person who is employed as such by the Department of
18 Alcoholism and Substance Abuse.
19 (12) The term "investigator for the Department of
20 State Police" means a person employed by the Department
21 of State Police who is vested under Section 4 of the
22 Narcotic Control Division Abolition Act with such law
23 enforcement powers as render him ineligible for coverage
24 under the Social Security Act by reason of Sections
25 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
26 (13) "Investigator for the Office of the Attorney
27 General" means any person who is employed as such by the
28 Office of the Attorney General and is vested with such
29 investigative duties as render him ineligible for
30 coverage under the Social Security Act by reason of
31 Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that
32 Act. For the period before January 1, 1989, the term
33 includes all persons who were employed as investigators
34 by the Office of the Attorney General, without regard to
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1 social security status.
2 (14) "Controlled substance inspector" means any
3 person who is employed as such by the Department of
4 Professional Regulation and is vested with such law
5 enforcement duties as render him ineligible for coverage
6 under the Social Security Act by reason of Sections
7 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
8 The term "controlled substance inspector" includes the
9 Program Executive of Enforcement and the Assistant
10 Program Executive of Enforcement.
11 (15) The term "investigator for the Office of the
12 State's Attorneys Appellate Prosecutor" means a person
13 employed in that capacity on a full time basis under the
14 authority of Section 7.06 of the State's Attorneys
15 Appellate Prosecutor's Act.
16 (16) "Commerce Commission police officer" means any
17 person employed by the Illinois Commerce Commission who
18 is vested with such law enforcement duties as render him
19 ineligible for coverage under the Social Security Act by
20 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
21 218(l)(1) of that Act.
22 (d) A security employee of the Department of
23 Corrections, and a security employee of the Department of
24 Mental Health and Developmental Disabilities who is not a
25 mental health police officer, shall not be eligible for the
26 alternative retirement annuity provided by this Section
27 unless he or she meets the following minimum age and service
28 requirements at the time of retirement:
29 (i) 25 years of eligible creditable service and age
30 55; or
31 (ii) beginning January 1, 1987, 25 years of
32 eligible creditable service and age 54, or 24 years of
33 eligible creditable service and age 55; or
34 (iii) beginning January 1, 1988, 25 years of
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1 eligible creditable service and age 53, or 23 years of
2 eligible creditable service and age 55; or
3 (iv) beginning January 1, 1989, 25 years of
4 eligible creditable service and age 52, or 22 years of
5 eligible creditable service and age 55; or
6 (v) beginning January 1, 1990, 25 years of eligible
7 creditable service and age 51, or 21 years of eligible
8 creditable service and age 55; or
9 (vi) beginning January 1, 1991, 25 years of
10 eligible creditable service and age 50, or 20 years of
11 eligible creditable service and age 55.
12 Persons who have service credit under Article 16 of this
13 Code for service as a security employee of the Department of
14 Corrections in a position requiring certification as a
15 teacher may count such service toward establishing their
16 eligibility under the service requirements of this Section;
17 but such service may be used only for establishing such
18 eligibility, and not for the purpose of increasing or
19 calculating any benefit.
20 (e) If a member enters military service while working in
21 a position in which eligible creditable service may be
22 earned, and returns to State service in the same or another
23 such position, and fulfills in all other respects the
24 conditions prescribed in this Article for credit for military
25 service, such military service shall be credited as eligible
26 creditable service for the purposes of the retirement annuity
27 prescribed in this Section.
28 (f) For purposes of calculating retirement annuities
29 under this Section, periods of service rendered after
30 December 31, 1968 and before October 1, 1975 as a covered
31 employee in the position of special agent, conservation
32 police officer, mental health police officer, or investigator
33 for the Secretary of State, shall be deemed to have been
34 service as a noncovered employee, provided that the employee
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1 pays to the System prior to retirement an amount equal to (1)
2 the difference between the employee contributions that would
3 have been required for such service as a noncovered employee,
4 and the amount of employee contributions actually paid, plus
5 (2) if payment is made after July 31, 1987, regular interest
6 on the amount specified in item (1) from the date of service
7 to the date of payment.
8 For purposes of calculating retirement annuities under
9 this Section, periods of service rendered after December 31,
10 1968 and before January 1, 1982 as a covered employee in the
11 position of investigator for the Department of Revenue shall
12 be deemed to have been service as a noncovered employee,
13 provided that the employee pays to the System prior to
14 retirement an amount equal to (1) the difference between the
15 employee contributions that would have been required for such
16 service as a noncovered employee, and the amount of employee
17 contributions actually paid, plus (2) if payment is made
18 after January 1, 1990, regular interest on the amount
19 specified in item (1) from the date of service to the date of
20 payment.
21 (g) A State policeman may elect, not later than January
22 1, 1990, to establish eligible creditable service for up to
23 10 years of his service as a policeman under Article 3, by
24 filing a written election with the Board, accompanied by
25 payment of an amount to be determined by the Board, equal to
26 (i) the difference between the amount of employee and
27 employer contributions transferred to the System under
28 Section 3-110.5, and the amounts that would have been
29 contributed had such contributions been made at the rates
30 applicable to State policemen, plus (ii) interest thereon at
31 the effective rate for each year, compounded annually, from
32 the date of service to the date of payment.
33 Subject to the limitation in subsection (i), a State
34 policeman may elect, not later than July 1, 1993, to
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1 establish eligible creditable service for up to 10 years of
2 his service as a member of the County Police Department under
3 Article 9, by filing a written election with the Board,
4 accompanied by payment of an amount to be determined by the
5 Board, equal to (i) the difference between the amount of
6 employee and employer contributions transferred to the System
7 under Section 9-121.10 and the amounts that would have been
8 contributed had those contributions been made at the rates
9 applicable to State policemen, plus (ii) interest thereon at
10 the effective rate for each year, compounded annually, from
11 the date of service to the date of payment.
12 (h) Subject to the limitation in subsection (i), a State
13 policeman or investigator for the Secretary of State may
14 elect to establish eligible creditable service for up to 12
15 years of his service as a policeman under Article 5, by
16 filing a written election with the Board on or before January
17 31, 1992, and paying to the System by January 31, 1994 an
18 amount to be determined by the Board, equal to (i) the
19 difference between the amount of employee and employer
20 contributions transferred to the System under Section 5-236,
21 and the amounts that would have been contributed had such
22 contributions been made at the rates applicable to State
23 policemen, plus (ii) interest thereon at the effective rate
24 for each year, compounded annually, from the date of service
25 to the date of payment.
26 Subject to the limitation in subsection (i), a State
27 policeman, conservation police officer, or investigator for
28 the Secretary of State may elect to establish eligible
29 creditable service for up to 10 years of service as a
30 sheriff's law enforcement employee under Article 7, by filing
31 a written election with the Board on or before January 31,
32 1993, and paying to the System by January 31, 1994 an amount
33 to be determined by the Board, equal to (i) the difference
34 between the amount of employee and employer contributions
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1 transferred to the System under Section 7-139.7, and the
2 amounts that would have been contributed had such
3 contributions been made at the rates applicable to State
4 policemen, plus (ii) interest thereon at the effective rate
5 for each year, compounded annually, from the date of service
6 to the date of payment.
7 (i) The total amount of eligible creditable service
8 established by any person under subsections (g), (h), and
9 (j), and (k) of this Section shall not exceed 12 years.
10 (j) Subject to the limitation in subsection (i), an
11 investigator for the Office of the State's Attorneys
12 Appellate Prosecutor or a controlled substance inspector may
13 elect to establish eligible creditable service for up to 10
14 years of his service as a policeman under Article 3 or a
15 sheriff's law enforcement employee under Article 7, by filing
16 a written election with the Board, accompanied by payment of
17 an amount to be determined by the Board, equal to (1) the
18 difference between the amount of employee and employer
19 contributions transferred to the System under Section 3-110.6
20 or 7-139.8, and the amounts that would have been contributed
21 had such contributions been made at the rates applicable to
22 State policemen, plus (2) interest thereon at the effective
23 rate for each year, compounded annually, from the date of
24 service to the date of payment.
25 (k) Subject to the limitation in subsection (i) of this
26 Section, a controlled substance inspector may elect, no later
27 than March 31, 1998, to establish eligible creditable service
28 for periods spent as a full time law enforcement officer
29 employed by the federal government or by a state, county, or
30 local government, for which credit is not held in any other
31 public employee pension fund or retirement system, by filing
32 a written election with the Board, accompanied by evidence of
33 eligibility acceptable to the Board, and payment of an amount
34 to be determined by the Board, equal to (i) the amount of
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1 employee and employer contributions that would have been
2 contributed had those contributions been made during the
3 period for which credit is sought, based on the rates then
4 applicable and the salary received by the applicant upon
5 first entering service as a controlled substance inspector
6 after the period for which credit is sought, plus (ii)
7 interest thereon at the effective rate for each year,
8 compounded annually, from the date of service to the date of
9 payment.
10 (Source: P.A. 89-136, eff. 7-14-95; 89-445, eff. 2-7-96.)
11 (Text of Section after amendment by P.A. 89-507)
12 Sec. 14-110. Alternative retirement annuity.
13 (a) Any member who has withdrawn from service with not
14 less than 20 years of eligible creditable service and has
15 attained age 55, and any member who has withdrawn from
16 service with not less than 25 years of eligible creditable
17 service and has attained age 50, regardless of whether the
18 attainment of either of the specified ages occurs while the
19 member is still in service, shall be entitled to receive at
20 the option of the member, in lieu of the regular or minimum
21 retirement annuity, a retirement annuity computed as
22 follows:
23 (i) for periods of service as a noncovered
24 employee, 2 1/4% of final average compensation for each
25 of the first 10 years of creditable service, 2 1/2% for
26 each year above 10 years to and including 20 years of
27 creditable service, and 2 3/4% for each year of
28 creditable service above 20 years; and
29 (ii) for periods of eligible creditable service as
30 a covered employee, 1.67% of final average compensation
31 for each of the first 10 years of such service, 1.90% for
32 each of the next 10 years of such service, 2.10% for each
33 year of such service in excess of 20 but not exceeding
34 30, and 2.30% for each year in excess of 30.
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1 Such annuity shall be subject to a maximum of 75% of
2 final average compensation. These rates shall not be
3 applicable to any service performed by a member as a covered
4 employee which is not eligible creditable service. Service
5 as a covered employee which is not eligible creditable
6 service shall be subject to the rates and provisions of
7 Section 14-108.
8 (b) For the purpose of this Section, "eligible
9 creditable service" means creditable service resulting from
10 service in one or more of the following positions:
11 (1) State policeman;
12 (2) fire fighter in the fire protection service of
13 a department;
14 (3) air pilot;
15 (4) special agent;
16 (5) investigator for the Secretary of State;
17 (6) conservation police officer;
18 (7) investigator for the Department of Revenue;
19 (8) security employee of the Department of Human
20 Services;
21 (9) Central Management Services security police
22 officer;
23 (10) security employee of the Department of
24 Corrections;
25 (11) dangerous drugs investigator;
26 (12) investigator for the Department of State
27 Police;
28 (13) investigator for the Office of the Attorney
29 General;
30 (14) controlled substance inspector;
31 (15) investigator for the Office of the State's
32 Attorneys Appellate Prosecutor;
33 (16) Commerce Commission police officer.
34 A person employed in one of the positions specified in
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1 this subsection is entitled to eligible creditable service
2 for service credit earned under this Article while undergoing
3 the basic police training course approved by the Illinois
4 Local Governmental Law Enforcement Officers Training Board,
5 if completion of that training is required of persons serving
6 in that position. For the purposes of this Code, service
7 during the required basic police training course shall be
8 deemed performance of the duties of the specified position,
9 even though the person is not a sworn peace officer at the
10 time of the training.
11 (c) For the purposes of this Section:
12 (1) The term "state policeman" includes any title
13 or position in the Department of State Police that is
14 held by an individual employed under the State Police
15 Act.
16 (2) The term "fire fighter in the fire protection
17 service of a department" includes all officers in such
18 fire protection service including fire chiefs and
19 assistant fire chiefs.
20 (3) The term "air pilot" includes any employee
21 whose official job description on file in the Department
22 of Central Management Services, or in the department by
23 which he is employed if that department is not covered by
24 the Personnel Code, states that his principal duty is the
25 operation of aircraft, and who possesses a pilot's
26 license; however, the change in this definition made by
27 this amendatory Act of 1983 shall not operate to exclude
28 any noncovered employee who was an "air pilot" for the
29 purposes of this Section on January 1, 1984.
30 (4) The term "special agent" means any person who
31 by reason of employment by the Division of Narcotic
32 Control, the Bureau of Investigation or, after July 1,
33 1977, the Division of Criminal Investigation, the
34 Division of Internal Investigation or any other Division
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1 or organizational entity in the Department of State
2 Police is vested by law with duties to maintain public
3 order, investigate violations of the criminal law of this
4 State, enforce the laws of this State, make arrests and
5 recover property. The term "special agent" includes any
6 title or position in the Department of State Police that
7 is held by an individual employed under the State Police
8 Act.
9 (5) The term "investigator for the Secretary of
10 State" means any person employed by the Office of the
11 Secretary of State and vested with such investigative
12 duties as render him ineligible for coverage under the
13 Social Security Act by reason of Sections 218(d)(5)(A),
14 218(d)(8)(D) and 218(l)(1) of that Act.
15 A person who became employed as an investigator for
16 the Secretary of State between January 1, 1967 and
17 December 31, 1975, and who has served as such until
18 attainment of age 60, either continuously or with a
19 single break in service of not more than 3 years
20 duration, which break terminated before January 1, 1976,
21 shall be entitled to have his retirement annuity
22 calculated in accordance with subsection (a),
23 notwithstanding that he has less than 20 years of credit
24 for such service.
25 (6) The term "Conservation Police Officer" means
26 any person employed by the Division of Law Enforcement of
27 the Department of Natural Resources and vested with such
28 law enforcement duties as render him ineligible for
29 coverage under the Social Security Act by reason of
30 Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of
31 that Act. The term "Conservation Police Officer"
32 includes the positions of Chief Conservation Police
33 Administrator and Assistant Conservation Police
34 Administrator.
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1 (7) The term "investigator for the Department of
2 Revenue" means any person employed by the Department of
3 Revenue and vested with such investigative duties as
4 render him ineligible for coverage under the Social
5 Security Act by reason of Sections 218(d)(5)(A),
6 218(d)(8)(D) and 218(l)(1) of that Act.
7 (8) The term "security employee of the Department
8 of Human Services" means any person employed by the
9 Department of Human Services who is employed at the
10 Chester Mental Health Center and has daily contact with
11 the residents thereof, or who is a mental health police
12 officer. "Mental health police officer" means any person
13 employed by the Department of Human Services in a
14 position pertaining to the Department's mental health and
15 developmental disabilities functions who is vested with
16 such law enforcement duties as render the person
17 ineligible for coverage under the Social Security Act by
18 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
19 218(l)(1) of that Act.
20 (9) "Central Management Services security police
21 officer" means any person employed by the Department of
22 Central Management Services who is vested with such law
23 enforcement duties as render him ineligible for coverage
24 under the Social Security Act by reason of Sections
25 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
26 (10) The term "security employee of the Department
27 of Corrections" means any employee of the Department of
28 Corrections or the former Department of Personnel, and
29 any member or employee of the Prisoner Review Board, who
30 has daily contact with inmates by working within a
31 correctional facility or who is a parole officer or an
32 employee who has direct contact with committed persons in
33 the performance of his or her job duties.
34 (11) The term "dangerous drugs investigator" means
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1 any person who is employed as such by the Department of
2 Human Services.
3 (12) The term "investigator for the Department of
4 State Police" means a person employed by the Department
5 of State Police who is vested under Section 4 of the
6 Narcotic Control Division Abolition Act with such law
7 enforcement powers as render him ineligible for coverage
8 under the Social Security Act by reason of Sections
9 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
10 (13) "Investigator for the Office of the Attorney
11 General" means any person who is employed as such by the
12 Office of the Attorney General and is vested with such
13 investigative duties as render him ineligible for
14 coverage under the Social Security Act by reason of
15 Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that
16 Act. For the period before January 1, 1989, the term
17 includes all persons who were employed as investigators
18 by the Office of the Attorney General, without regard to
19 social security status.
20 (14) "Controlled substance inspector" means any
21 person who is employed as such by the Department of
22 Professional Regulation and is vested with such law
23 enforcement duties as render him ineligible for coverage
24 under the Social Security Act by reason of Sections
25 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
26 The term "controlled substance inspector" includes the
27 Program Executive of Enforcement and the Assistant
28 Program Executive of Enforcement.
29 (15) The term "investigator for the Office of the
30 State's Attorneys Appellate Prosecutor" means a person
31 employed in that capacity on a full time basis under the
32 authority of Section 7.06 of the State's Attorneys
33 Appellate Prosecutor's Act.
34 (16) "Commerce Commission police officer" means any
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1 person employed by the Illinois Commerce Commission who
2 is vested with such law enforcement duties as render him
3 ineligible for coverage under the Social Security Act by
4 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
5 218(l)(1) of that Act.
6 (d) A security employee of the Department of
7 Corrections, and a security employee of the Department of
8 Human Services who is not a mental health police officer,
9 shall not be eligible for the alternative retirement annuity
10 provided by this Section unless he or she meets the following
11 minimum age and service requirements at the time of
12 retirement:
13 (i) 25 years of eligible creditable service and age
14 55; or
15 (ii) beginning January 1, 1987, 25 years of
16 eligible creditable service and age 54, or 24 years of
17 eligible creditable service and age 55; or
18 (iii) beginning January 1, 1988, 25 years of
19 eligible creditable service and age 53, or 23 years of
20 eligible creditable service and age 55; or
21 (iv) beginning January 1, 1989, 25 years of
22 eligible creditable service and age 52, or 22 years of
23 eligible creditable service and age 55; or
24 (v) beginning January 1, 1990, 25 years of eligible
25 creditable service and age 51, or 21 years of eligible
26 creditable service and age 55; or
27 (vi) beginning January 1, 1991, 25 years of
28 eligible creditable service and age 50, or 20 years of
29 eligible creditable service and age 55.
30 Persons who have service credit under Article 16 of this
31 Code for service as a security employee of the Department of
32 Corrections in a position requiring certification as a
33 teacher may count such service toward establishing their
34 eligibility under the service requirements of this Section;
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1 but such service may be used only for establishing such
2 eligibility, and not for the purpose of increasing or
3 calculating any benefit.
4 (e) If a member enters military service while working in
5 a position in which eligible creditable service may be
6 earned, and returns to State service in the same or another
7 such position, and fulfills in all other respects the
8 conditions prescribed in this Article for credit for military
9 service, such military service shall be credited as eligible
10 creditable service for the purposes of the retirement annuity
11 prescribed in this Section.
12 (f) For purposes of calculating retirement annuities
13 under this Section, periods of service rendered after
14 December 31, 1968 and before October 1, 1975 as a covered
15 employee in the position of special agent, conservation
16 police officer, mental health police officer, or investigator
17 for the Secretary of State, shall be deemed to have been
18 service as a noncovered employee, provided that the employee
19 pays to the System prior to retirement an amount equal to (1)
20 the difference between the employee contributions that would
21 have been required for such service as a noncovered employee,
22 and the amount of employee contributions actually paid, plus
23 (2) if payment is made after July 31, 1987, regular interest
24 on the amount specified in item (1) from the date of service
25 to the date of payment.
26 For purposes of calculating retirement annuities under
27 this Section, periods of service rendered after December 31,
28 1968 and before January 1, 1982 as a covered employee in the
29 position of investigator for the Department of Revenue shall
30 be deemed to have been service as a noncovered employee,
31 provided that the employee pays to the System prior to
32 retirement an amount equal to (1) the difference between the
33 employee contributions that would have been required for such
34 service as a noncovered employee, and the amount of employee
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1 contributions actually paid, plus (2) if payment is made
2 after January 1, 1990, regular interest on the amount
3 specified in item (1) from the date of service to the date of
4 payment.
5 (g) A State policeman may elect, not later than January
6 1, 1990, to establish eligible creditable service for up to
7 10 years of his service as a policeman under Article 3, by
8 filing a written election with the Board, accompanied by
9 payment of an amount to be determined by the Board, equal to
10 (i) the difference between the amount of employee and
11 employer contributions transferred to the System under
12 Section 3-110.5, and the amounts that would have been
13 contributed had such contributions been made at the rates
14 applicable to State policemen, plus (ii) interest thereon at
15 the effective rate for each year, compounded annually, from
16 the date of service to the date of payment.
17 Subject to the limitation in subsection (i), a State
18 policeman may elect, not later than July 1, 1993, to
19 establish eligible creditable service for up to 10 years of
20 his service as a member of the County Police Department under
21 Article 9, by filing a written election with the Board,
22 accompanied by payment of an amount to be determined by the
23 Board, equal to (i) the difference between the amount of
24 employee and employer contributions transferred to the System
25 under Section 9-121.10 and the amounts that would have been
26 contributed had those contributions been made at the rates
27 applicable to State policemen, plus (ii) interest thereon at
28 the effective rate for each year, compounded annually, from
29 the date of service to the date of payment.
30 (h) Subject to the limitation in subsection (i), a State
31 policeman or investigator for the Secretary of State may
32 elect to establish eligible creditable service for up to 12
33 years of his service as a policeman under Article 5, by
34 filing a written election with the Board on or before January
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1 31, 1992, and paying to the System by January 31, 1994 an
2 amount to be determined by the Board, equal to (i) the
3 difference between the amount of employee and employer
4 contributions transferred to the System under Section 5-236,
5 and the amounts that would have been contributed had such
6 contributions been made at the rates applicable to State
7 policemen, plus (ii) interest thereon at the effective rate
8 for each year, compounded annually, from the date of service
9 to the date of payment.
10 Subject to the limitation in subsection (i), a State
11 policeman, conservation police officer, or investigator for
12 the Secretary of State may elect to establish eligible
13 creditable service for up to 10 years of service as a
14 sheriff's law enforcement employee under Article 7, by filing
15 a written election with the Board on or before January 31,
16 1993, and paying to the System by January 31, 1994 an amount
17 to be determined by the Board, equal to (i) the difference
18 between the amount of employee and employer contributions
19 transferred to the System under Section 7-139.7, and the
20 amounts that would have been contributed had such
21 contributions been made at the rates applicable to State
22 policemen, plus (ii) interest thereon at the effective rate
23 for each year, compounded annually, from the date of service
24 to the date of payment.
25 (i) The total amount of eligible creditable service
26 established by any person under subsections (g), (h), and
27 (j), and (k) of this Section shall not exceed 12 years.
28 (j) Subject to the limitation in subsection (i), an
29 investigator for the Office of the State's Attorneys
30 Appellate Prosecutor or a controlled substance inspector may
31 elect to establish eligible creditable service for up to 10
32 years of his service as a policeman under Article 3 or a
33 sheriff's law enforcement employee under Article 7, by filing
34 a written election with the Board, accompanied by payment of
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1 an amount to be determined by the Board, equal to (1) the
2 difference between the amount of employee and employer
3 contributions transferred to the System under Section 3-110.6
4 or 7-139.8, and the amounts that would have been contributed
5 had such contributions been made at the rates applicable to
6 State policemen, plus (2) interest thereon at the effective
7 rate for each year, compounded annually, from the date of
8 service to the date of payment.
9 (k) Subject to the limitation in subsection (i) of this
10 Section, a controlled substance inspector may elect, no later
11 than March 31, 1998, to establish eligible creditable service
12 for periods spent as a full time law enforcement officer
13 employed by the federal government or by a state, county, or
14 local government, for which credit is not held in any other
15 public employee pension fund or retirement system, by filing
16 a written election with the Board, accompanied by evidence of
17 eligibility acceptable to the Board, and payment of an amount
18 to be determined by the Board, equal to (i) the amount of
19 employee and employer contributions that would have been
20 contributed had those contributions been made during the
21 period for which credit is sought, based on the rates then
22 applicable and the salary received by the applicant upon
23 first entering service as a controlled substance inspector
24 after the period for which credit is sought, plus (ii)
25 interest thereon at the effective rate for each year,
26 compounded annually, from the date of service to the date of
27 payment.
28 (Source: P.A. 89-136, eff. 7-14-95; 89-445, eff. 2-7-96;
29 89-507, eff. 7-1-97.)
30 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
31 Sec. 15-157. Employee Contributions.
32 (a) Each participating employee shall make contributions
33 towards the retirement annuity of each payment of earnings
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1 applicable to employment under this system on and after the
2 date of becoming a participant as follows: Prior to
3 September 1, 1949, 3 1/2% of earnings; from September 1, 1949
4 to August 31, 1955, 5%; from September 1, 1955 to August 31,
5 1969, 6%; from September 1, 1969, 6 1/2%. These
6 contributions are to be considered as normal contributions
7 for purposes of this Article.
8 Each participant who is a police officer or firefighter
9 shall make normal contributions of 8% of each payment of
10 earnings applicable to employment as a police officer or
11 firefighter under this system on or after September 1, 1981,
12 unless he or she files with the board within 60 days after
13 the effective date of this amendatory Act of 1991 or 60 days
14 after the board receives notice that he or she is employed as
15 a police officer or firefighter, whichever is later, a
16 written notice waiving the retirement formula provided by
17 Rule 4 of Section 15-136. This waiver shall be irrevocable.
18 If a participant had met the conditions set forth in Section
19 15-132.1 prior to the effective date of this amendatory Act
20 of 1991 but failed to make the additional normal
21 contributions required by this paragraph, he or she may elect
22 to pay the additional contributions plus compound interest at
23 the effective rate. If such payment is received by the
24 board, the service shall be considered as police officer
25 service in calculating the retirement annuity under Rule 4 of
26 Section 15-136.
27 (b) Starting September 1, 1969, each participating
28 employee shall make additional contributions of 1/2 of 1% of
29 earnings to finance a portion of the cost of the annual
30 increases in retirement annuity provided under Section
31 15-136.
32 (c) Each participating employee shall make survivors
33 insurance contributions of 1% of earnings applicable under
34 this system on and after August 1, 1959. Contributions in
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1 excess of $80 during any fiscal year beginning August 31,
2 1969 and in excess of $120 during any fiscal year thereafter
3 until September 1, 1971 shall be considered as additional
4 contributions for purposes of this Article.
5 (d) If the board by board rule so permits and subject to
6 such conditions and limitations as may be specified in its
7 rules, a participant may make other additional contributions
8 of such percentage of earnings or amounts as the participant
9 shall elect in a written notice thereof received by the
10 board.
11 (e) That fraction of a participant's total accumulated
12 normal contributions, the numerator of which is equal to the
13 number of years of service in excess of that which is
14 required to qualify for the maximum retirement annuity, and
15 the denominator of which is equal to the total service of the
16 participant, shall be considered as accumulated additional
17 contributions. The determination of the applicable maximum
18 annuity and the adjustment in contributions required by this
19 provision shall be made as of the date of the participant's
20 retirement.
21 (f) Notwithstanding the foregoing, a participating
22 employee shall not be required to make contributions under
23 this Section after the date upon which continuance of such
24 contributions would otherwise cause his or her retirement
25 annuity to exceed the maximum retirement annuity as specified
26 in clause (1) of subsection (c) of Section 15-136.
27 (g) A participating employee may make contributions for
28 the purchase of service credit under this Article.
29 (Source: P.A. 86-272; 86-1488.)
30 (40 ILCS 5/15-157.1) (from Ch. 108 1/2, par. 15-157.1)
31 Sec. 15-157.1. Pickup Pick up of employee contributions.
32 (a) Each employer shall pick up the employee
33 contributions required under subsections (a), (b), and (c) of
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1 Section 15-157 for all earnings payments made on and after
2 January 1, 1981, and the contributions so picked up shall be
3 treated as employer contributions in determining tax
4 treatment under the United States Internal Revenue Code.
5 These contributions shall not be included as gross income of
6 the participant until such time as they are distributed or
7 made available. The employer shall pay these employee
8 contributions from the same source of funds which is used in
9 paying earnings to the employee. The employer may pick up
10 these contributions by a reduction in the cash salary of the
11 participants, or by an offset against a future salary
12 increase, or by a combination of a reduction in salary and
13 offset against a future salary increase.
14 (b) Subject to the requirements of federal law, a
15 participating employee may elect to have the employer pick up
16 optional contributions that the participant has elected to
17 pay to the System under Section 15-157(g), and the
18 contributions so picked up shall be treated as employer
19 contributions for the purposes of determining federal tax
20 treatment under the federal Internal Revenue Code of 1986.
21 These contributions shall not be included as gross income of
22 the participant until such time as they are distributed or
23 made available. The employer shall pick up the contributions
24 by a reduction in the cash salary of the participant and
25 shall pay the contributions from the same source of funds
26 that is used to pay earnings to the participant. The
27 election to have optional contributions picked up is
28 irrevocable.
29 (Source: P.A. 83-1440.)
30 (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
31 Sec. 16-127. Computation of creditable service.
32 (a) Each member shall receive regular credit for all
33 service as a teacher from the date membership begins, for
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1 which satisfactory evidence is supplied and all contributions
2 have been paid.
3 (b) The following periods of service shall earn optional
4 credit and each member shall receive credit for all such
5 service for which satisfactory evidence is supplied and all
6 contributions have been paid as of the date specified:
7 (1) Prior service as a teacher.
8 (2) Service in a capacity essentially similar or
9 equivalent to that of a teacher, in the public common
10 schools in school districts in this State not included
11 within the provisions of this System, or of any other
12 State, territory, dependency or possession of the United
13 States, or in schools operated by or under the auspices
14 of the United States, or under the auspices of any agency
15 or department of any other State, and service during any
16 period of professional speech correction or special
17 education experience for a public agency within this
18 State or any other State, territory, dependency or
19 possession of the United States, and service prior to
20 February 1, 1951 as a recreation worker for the Illinois
21 Department of Public Safety, for a period not exceeding
22 the lesser of 2/5 of the total creditable service of the
23 member or 10 years. The maximum service of 10 years
24 which is allowable under this paragraph shall be reduced
25 by the service credit which is validated by other
26 retirement systems under paragraph (i) of Section 15-113
27 and paragraph 1 of Section 17-133. Credit granted under
28 this paragraph may not be used in determination of a
29 retirement annuity or disability benefits unless the
30 member has at least 5 years of creditable service earned
31 subsequent to this employment with one or more of the
32 following systems: Teachers' Retirement System of the
33 State of Illinois, State Universities Retirement System,
34 and the Public School Teachers' Pension and Retirement
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1 Fund of Chicago. Whenever such service credit exceeds
2 the maximum allowed for all purposes of this Article, the
3 first service rendered in point of time shall be
4 considered. The changes to this subdivision (b)(2) made
5 by Public Act 86-272 shall apply not only to persons who
6 on or after its effective date (August 23, 1989) are in
7 service as a teacher under the System, but also to
8 persons whose status as such a teacher terminated prior
9 to such effective date, whether or not such person is an
10 annuitant on that date.
11 (3) Any periods immediately following teaching
12 service, under this System or under Article 17, (or
13 immediately following service prior to February 1, 1951
14 as a recreation worker for the Illinois Department of
15 Public Safety) spent in active service with the military
16 forces of the United States; periods spent in educational
17 programs that prepare for return to teaching sponsored by
18 the federal government following such active military
19 service; if a teacher returns to teaching service within
20 one calendar year after discharge or after the completion
21 of the educational program, a further period, not
22 exceeding one calendar year, between time spent in
23 military service or in such educational programs and the
24 return to employment as a teacher under this System; and
25 a period of up to 2 years of active military service not
26 immediately following employment as a teacher.
27 The changes to this Section and Section 16-128
28 relating to military service made by P.A. 87-794 shall
29 apply not only to persons who on or after its effective
30 date are in service as a teacher under the System, but
31 also to persons whose status as a teacher terminated
32 prior to that date, whether or not the person is an
33 annuitant on that date. In the case of an annuitant who
34 applies for credit allowable under this Section for a
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1 period of military service that did not immediately
2 follow employment, and who has made the required
3 contributions for such credit, the annuity shall be
4 recalculated to include the additional service credit,
5 with the increase taking effect on the date the System
6 received written notification of the annuitant's intent
7 to purchase the credit, if payment of all the required
8 contributions is made within 60 days of such notice, or
9 else on the first annuity payment date following the date
10 of payment of the required contributions. In calculating
11 the automatic annual increase for an annuity that has
12 been recalculated under this Section, the increase
13 attributable to the additional service allowable under
14 P.A. 87-794 shall be included in the calculation of
15 automatic annual increases accruing after the effective
16 date of the recalculation.
17 Credit for military service shall be determined as
18 follows: if entry occurs during the months of July,
19 August, or September and the member was a teacher at the
20 end of the immediately preceding school term, credit
21 shall be granted from July 1 of the year in which he or
22 she entered service; if entry occurs during the school
23 term and the teacher was in teaching service at the
24 beginning of the school term, credit shall be granted
25 from July 1 of such year. In all other cases where credit
26 for military service is allowed, credit shall be granted
27 from the date of entry into the service.
28 The total period of military service for which
29 credit is granted shall not exceed 5 years for any member
30 unless the service: (A) is validated before July 1,
31 1964, and (B) does not extend beyond July 1, 1963.
32 Credit for military service shall be granted under this
33 Section only if not more than 5 years of the military
34 service for which credit is granted under this Section is
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1 used by the member to qualify for a military retirement
2 allotment from any branch of the armed forces of the
3 United States. The changes to this subdivision (b)(3)
4 made by Public Act 86-272 shall apply not only to persons
5 who on or after its effective date (August 23, 1989) are
6 in service as a teacher under the System, but also to
7 persons whose status as such a teacher terminated prior
8 to such effective date, whether or not such person is an
9 annuitant on that date.
10 (4) Any periods served as a member of the General
11 Assembly.
12 (5)(i) Any periods for which a teacher, as defined
13 in Section 16-106, is granted a leave of absence,
14 provided he or she returns to teaching service creditable
15 under this System or the State Universities Retirement
16 System following the leave; (ii) periods during which a
17 teacher is involuntarily laid off from teaching, provided
18 he or she returns to teaching following the lay-off; and
19 (iii) periods prior to July 1, 1983 during which a
20 teacher ceased covered employment due to pregnancy,
21 provided that the teacher returned to teaching service
22 creditable under this System or the State Universities
23 Retirement System following the pregnancy and submits
24 evidence satisfactory to the Board documenting that the
25 employment ceased due to pregnancy; and (iv) periods
26 prior to July 1, 1983 during which a teacher ceased
27 covered employment for the purpose of adopting an infant
28 or caring for a newly adopted infant, provided that the
29 teacher returned to teaching service creditable under
30 this System or the State Universities Retirement System
31 within one year following the adoption and submits
32 evidence satisfactory to the Board documenting that the
33 employment ceased for the purpose of adopting an infant
34 or caring for a newly adopted infant. However, total
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1 credit under this paragraph (5) may not exceed 3 years.
2 Any qualified member or annuitant may apply for
3 credit under item (iii) or (iv) of this paragraph (5)
4 without regard to whether service was terminated before
5 the effective date of this amendatory Act of 1997 1995.
6 In the case of an annuitant who establishes credit under
7 item (iii) or (iv), the annuity shall be recalculated to
8 include the additional service credit. The increase in
9 annuity shall take effect on the date the System receives
10 written notification of the annuitant's intent to
11 purchase the credit, if the required evidence is
12 submitted and the required contribution paid within 60
13 days of that notification, otherwise on the first annuity
14 payment date following the System's receipt of the
15 required evidence and contribution. The increase in an
16 annuity recalculated under this provision shall be
17 included in the calculation of automatic annual increases
18 in the annuity accruing after the effective date of the
19 recalculation.
20 Optional credit may be purchased under this
21 subsection (b)(5) for periods during which a teacher has
22 been granted a leave of absence pursuant to Section 24-13
23 of the School Code. A teacher whose service under this
24 Article terminated prior to the effective date of P.A.
25 86-1488 shall be eligible to purchase such optional
26 credit. If a teacher who purchases this optional credit
27 is already receiving a retirement annuity under this
28 Article, the annuity shall be recalculated as if the
29 annuitant had applied for the leave of absence credit at
30 the time of retirement. The difference between the
31 entitled annuity and the actual annuity shall be credited
32 to the purchase of the optional credit. The remainder of
33 the purchase cost of the optional credit shall be paid on
34 or before April 1, 1992.
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1 The change in this paragraph made by Public Act
2 86-273 shall be applicable to teachers who retire after
3 June 1, 1989, as well as to teachers who are in service
4 on that date.
5 (6) Any days of unused and uncompensated
6 accumulated sick leave earned by a teacher. The service
7 credit granted under this paragraph shall be the ratio of
8 the number of unused and uncompensated accumulated sick
9 leave days to 170 days, subject to a maximum of one year
10 of service credit. Prior to the member's retirement,
11 each former employer shall certify to the System the
12 number of unused and uncompensated accumulated sick leave
13 days credited to the member at the time of termination of
14 service. The period of unused sick leave shall not be
15 considered in determining the effective date of
16 retirement. A member is not required to make
17 contributions in order to obtain service credit for
18 unused sick leave.
19 Credit for sick leave shall, at retirement, be
20 granted by the System for any retiring regional or
21 assistant regional superintendent of schools at the rate
22 of 6 days per year of creditable service or portion
23 thereof established while serving as such superintendent
24 or assistant superintendent.
25 (7) Periods prior to February 1, 1987 served as an
26 employee of the Illinois Mathematics and Science Academy
27 for which credit has not been terminated under Section
28 15-113.9 of this Code.
29 (8) Service as a substitute teacher for work
30 performed prior to July 1, 1990.
31 (9) Service as a part-time teacher for work
32 performed prior to July 1, 1990.
33 (10) Up to 2 years of employment with Southern
34 Illinois University - Carbondale from September 1, 1959
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1 to August 31, 1961, or with Governors State University
2 from September 1, 1972 to August 31, 1974, for which the
3 teacher has no credit under Article 15. To receive
4 credit under this item (10), a teacher must apply in
5 writing to the Board and pay the required contributions
6 before May 1, 1993 and have at least 12 years of service
7 credit under this Article.
8 (c) The service credits specified in this Section shall
9 be granted only if: (1) such service credits are not used
10 for credit in any other statutory tax-supported public
11 employee retirement system other than the federal Social
12 Security program; and (2) the member makes the required
13 contributions as specified in Section 16-128. The service
14 credit shall be effective as of the date the required
15 contributions are completed.
16 Any service credits granted under this Section shall
17 terminate upon cessation of membership for any cause.
18 Credit may not be granted under this Section covering any
19 period for which an age retirement or disability retirement
20 allowance has been paid.
21 (Source: P.A. 88-45; 89-430, eff. 12-15-95.)
22 (40 ILCS 5/16-141) (from Ch. 108 1/2, par. 16-141)
23 Sec. 16-141. Survivors' benefits - death in service.
24 (a) Upon the death of a member in service occurring on
25 or after July 1, 1990, a beneficiary designated by the member
26 shall be entitled to receive, in a single sum, for each
27 completed year of service up to a maximum of 6 years, an
28 amount equal to 1/6 of the member's highest annual salary
29 rate within the last 4 years of service. If death occurs
30 prior to completion of the first year of service, the
31 beneficiary shall be entitled to receive, in a single sum,
32 an amount equal to 1/6 of the most recent annual salary rate.
33 If no beneficiary is designated by the member or if no
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1 designated beneficiary survives the member, the single sum
2 benefit under this paragraph shall be paid to the eligible
3 dependent beneficiary or to the trust established for such
4 eligible dependent beneficiary, as determined under paragraph
5 (3) of Section 16-140, or, if there is no dependent
6 beneficiary, to the decedent's estate upon receipt of proper
7 proof of death.
8 (b) If the deceased member had at least 1.5 years of
9 creditable service, had rendered at least 60 days of
10 creditable service within the 18 months immediately preceding
11 death and had not designated a non-dependent beneficiary who
12 survives, a dependent beneficiary may elect to receive,
13 instead of the benefit under subsection (a) of this Section,
14 a single sum payment of $1,000, divided by the number of such
15 beneficiaries, together with a survivor's benefit as
16 specified under the following paragraphs:
17 (1) A surviving spouse, if no eligible children
18 exist, shall receive a survivor's benefit of 30% of
19 average salary, beginning at age 50 or upon the date of
20 the member's death, whichever is later, except that if
21 the member's death occurred before July 1, 1973 and the
22 surviving spouse is less than age 55 on the effective
23 date of this amendatory Act of 1997, the survivor's
24 benefit shall begin on the effective date of this
25 amendatory Act of 1997 or upon the surviving spouse's
26 attainment of age 50, whichever occurs later at age 55.
27 (2) A surviving spouse, regardless of age, who is
28 providing for the support of the deceased member's
29 eligible child, shall receive a survivor's benefit of 30%
30 of average salary, plus the sum of (A) 20% of average
31 salary on account of each dependent child, and (B) 10% of
32 average salary divided by the number of children entitled
33 to this benefit.
34 (3) Each eligible child, if there is no eligible
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1 surviving spouse, shall receive upon the death of the
2 member a survivor's benefit equal to the sum of: (A) 20%
3 of average salary, and (B) 10% of average salary divided
4 by the number of children entitled to this benefit.
5 (4) A dependent parent shall receive upon
6 attainment of age 55 or the date of the member's death,
7 whichever is later, a survivor's benefit of 30% of
8 average salary, unless dependency is terminated by
9 remarriage or otherwise.
10 (c) No election under this Section may be made by a
11 dependent beneficiary if a non-dependent beneficiary
12 designated by the member survives such member.
13 (d) Notwithstanding the other provisions of this
14 Section, if the member is in receipt of a benefit at the time
15 of his or her death, a dependent beneficiary shall receive a
16 survivor benefit beginning the first of the month following
17 the death of the member.
18 (e) In cases where the changes to this Section or
19 Section 16-142 made by Public Act 87-1265 this amendatory Act
20 of 1993 increase the amount of a single-sum death benefit
21 that has already been paid by the System, the System shall
22 pay to the beneficiary the amount of the increase provided by
23 this amendatory Act.
24 (Source: P.A. 86-273; 87-1265.)
25 Section 90. The State Mandates Act is amended by adding
26 Section 8.21 as follows:
27 (30 ILCS 805/8.21 new)
28 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
29 and 8 of this Act, no reimbursement by the State is required
30 for the implementation of any mandate created by this
31 amendatory Act of 1997.
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1 Section 95. No acceleration or delay. Where this Act
2 makes changes in a statute that is represented in this Act by
3 text that is not yet or no longer in effect (for example, a
4 Section represented by multiple versions), the use of that
5 text does not accelerate or delay the taking effect of (i)
6 the changes made by this Act or (ii) provisions derived from
7 any other Public Act.
8 Section 99. Effective date. This Act takes effect upon
9 becoming law.