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90_HB3515ccr001
LRB9011159EGfgccr6
1 90TH GENERAL ASSEMBLY
2 CONFERENCE COMMITTEE REPORT
3 ON HOUSE BILL 3515
4 -------------------------------------------------------------
5 -------------------------------------------------------------
6 To the President of the Senate and the Speaker of the
7 House of Representatives:
8 We, the conference committee appointed to consider the
9 differences between the houses in relation to Senate
10 Amendment No. 1 to House Bill 3515, recommend the following:
11 (1) That the Senate recede from Senate Amendment No. 1;
12 and
13 (2) That House Bill 3515 be amended as follows:
14 by replacing the title with the following:
15 "AN ACT in relation to public employee retirement
16 benefits, amending named Acts."; and
17 by replacing everything after the enacting clause with the
18 following:
19 "Section 5. The Illinois Pension Code is amended by
20 changing Sections 2-121, 2-123, 2-126, 2-126.1, 3-114.3,
21 3-114.4, 3-121, 5-156, 5-157, 5-167.4, 5-168, 5-172, 5-204,
22 6-128.4, 6-165, 7-146, 7-150, 7-159, 7-173.1, 7-173.2, 8-137,
23 8-137.1, 8-138, 8-139, 8-150.1, 8-158, 8-173, 8-244.1,
24 11-134, 11-134.1, 11-134.2, 11-134.3, 11-145.1, 11-153,
25 11-169, 11-181, 11-182, 11-183, 12-133.1, 12-166, 14-104,
26 14-104.10 (as added by P.A. 90-32), 14-133.1, 15-107, 15-135,
27 15-136, 15-136.4, 15-141, 15-142, 15-145, 15-146, 15-150,
28 15-153.2, 15-153.3, 15-154, 15-157, 15-158.2, 15-158.3,
29 15-165, 15-167, 18-129, and 18-133.1 and adding Sections
30 3-114.6, 8-230.7, 12-133.5, 15-103.1, 15-103.2, 15-103.3, and
31 15-134.5 as follows:
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1 (40 ILCS 5/2-121) (from Ch. 108 1/2, par. 2-121)
2 Sec. 2-121. Survivor's annuity - conditions for payment.
3 (a) A survivor's annuity shall be payable to a surviving
4 spouse or eligible child (1) upon the death in service of a
5 participant with at least 2 years of service credit, or (2)
6 upon the death of an annuitant in receipt of a retirement
7 annuity, or (3) upon the death of a participant who
8 terminated service with at least 4 years of service credit.
9 The change in this subsection (a) made by this amendatory
10 Act of 1995 applies to survivors of participants who die on
11 or after December 1, 1994, without regard to whether or not
12 the participant was in service on or after the effective date
13 of this amendatory Act of 1995.
14 (b) To be eligible for the survivor's annuity, the
15 spouse and the participant or annuitant must have been
16 married for a continuous period of at least one year
17 immediately preceding the date of death, but need not have
18 been married on the day of the participant's last termination
19 of service, regardless of whether such termination occurred
20 prior to the effective date of this amendatory Act of 1985.
21 (c) The annuity shall be payable beginning on the date
22 of a participant's death, or the first of the month following
23 an annuitant's death, if the spouse is then age 50 or over,
24 or beginning at age 50 if the spouse is then under age 50.
25 If an eligible child or children of the participant or
26 annuitant (or a child or children of the eligible spouse
27 meeting the criteria of item (1), (2), or (3) of subsection
28 (d) of this Section) also survive, and the child or children
29 are under the care of the eligible spouse, the annuity shall
30 begin as of the date of a participant's death, or the first
31 of the month following an annuitant's death, without regard
32 to the spouse's age.
33 The change to this subsection made by this amendatory Act
34 of 1998 (relating to children of an eligible spouse) applies
35 to the eligible spouse of a participant or annuitant who dies
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1 on or after the effective date of this amendatory Act,
2 without regard to whether the participant or annuitant is in
3 service on or after that effective date.
4 (d) For the purposes of this Section and Section
5 2-121.1, "eligible child" means a child of the deceased
6 participant or annuitant who is at least one of the
7 following:
8 (1) unmarried and under the age of 18;
9 (2) unmarried, a full-time student, and under the
10 age of 22;
11 (3) dependent by reason of physical or mental
12 disability.
13 The inclusion of unmarried students under age 22 in the
14 calculation of survivor's annuities by this amendatory Act of
15 1991 shall apply to all eligible students beginning January
16 1, 1992, without regard to whether the deceased participant
17 or annuitant was in service on or after the effective date of
18 this amendatory Act of 1991.
19 Adopted children shall have the same status as children
20 of the participant or annuitant, but only if the proceedings
21 for adoption are commenced at least one year prior to the
22 date of the participant's or annuitant's death.
23 (e) Remarriage of a surviving spouse prior to attainment
24 of age 55 shall disqualify the surviving spouse from the
25 receipt of a survivor's annuity.
26 (Source: P.A. 89-136, eff. 7-14-95.)
27 (40 ILCS 5/2-123) (from Ch. 108 1/2, par. 2-123)
28 Sec. 2-123. Refunds.
29 (a) A participant who ceases to be a member, other than
30 an annuitant, shall, upon written request, receive a refund
31 of his or her total contributions, without interest. The
32 refund shall include the additional contributions for the
33 automatic increase in retirement annuity. By accepting the
34 refund, a participant forfeits all accrued rights and
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1 benefits in the System and loses credit for all service.
2 However, if he or she again becomes a member, he or she may
3 resume status as a participant and reestablish any forfeited
4 service credit by paying to the System the full amount
5 refunded, together with interest at 4% per annum from the
6 time the refund is paid to the date the member again becomes
7 a participant.
8 A former member of the General Assembly may reestablish
9 any service credit forfeited by acceptance of a refund by
10 paying to the System on or before February 1, 1993, the full
11 amount refunded, together with interest at 4% per annum from
12 the date of payment of the refund to the date of repayment.
13 When a member or former member owes money to the System,
14 interest at the rate of 4% per annum shall accrue and be
15 payable on such amounts owed beginning on the date of
16 termination of service as a member until the contributions
17 due have been paid in full.
18 (b) A participant who (1) has elected to cease making
19 contributions for survivor's annuity under subsection (b) of
20 Section 2-126, (2) has no eligible survivor's annuity
21 beneficiary survivor upon becoming an annuitant, or (3) who
22 terminates service with less than 8 years of service is
23 entitled to a refund of the contributions for a survivor's
24 annuity, without interest. If the such person later marries,
25 a survivor's annuity shall not be payable upon his or her
26 death, unless the amount of the such refund is repaid to the
27 System, together with interest at the rate of 4% per year
28 from the date of refund to the date of repayment.
29 (c) If at the date of retirement or death of a
30 participant who served as an officer of the General Assembly,
31 the total period of such service is less than 4 years, the
32 additional contributions made by such member on the
33 additional salary as an officer shall be refunded unless the
34 participant served as an officer for at least 2 years and has
35 contributed the amount he or she would have contributed if he
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1 or she had served as an officer for 4 years as provided in
2 Section 2-126.
3 (d) Upon the termination of the last survivor's annuity
4 payable to a survivor of a deceased participant, the excess,
5 if any, of the total contributions made by the participant
6 for retirement and survivor's annuity, without interest, over
7 the total amount of retirement and survivor's annuity
8 payments received by the participant and the participant's
9 survivors shall be refunded upon request:
10 (i) if there was a surviving spouse of the deceased
11 participant who was eligible for a survivor's annuity, to
12 the designated beneficiary of that spouse or, if the
13 designated beneficiary is deceased or there is no
14 designated beneficiary, to that spouse's estate;
15 (ii) if there was no eligible surviving spouse of
16 the deceased participant, to the designated beneficiary
17 of the deceased participant or, if the designated
18 beneficiary is deceased or there is no designated
19 beneficiary, to the deceased participant's estate.
20 (e) Upon the death of a participant, if a survivor's
21 annuity is not payable under this Article, a beneficiary
22 designated by the participant shall be entitled to a refund
23 of all contributions made by the participant. If the
24 participant has not designated a refund beneficiary, the
25 surviving spouse shall be entitled to the refund of
26 contributions; if there is no surviving spouse, the
27 contributions shall be refunded to the participant's
28 surviving children, if any, and if no children survive, the
29 refund payment shall be made to the participant's estate.
30 (Source: P.A. 90-448, eff. 8-16-97.)
31 (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
32 Sec. 2-126. Contributions by participants.
33 (a) Each participant shall contribute toward the cost of
34 his or her retirement annuity a percentage of each payment of
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1 salary received by him or her for service as a member as
2 follows: for service between October 31, 1947 and January 1,
3 1959, 5%; for service between January 1, 1959 and June 30,
4 1969, 6%; for service between July 1, 1969 and January 10,
5 1973, 6 1/2%; for service after January 10, 1973, 7%; for
6 service after December 31, 1981, 8 1/2%.
7 (b) Beginning August 2, 1949, each male participant, and
8 from July 1, 1971, each female participant shall contribute
9 towards the cost of the survivor's annuity 2% of salary.
10 A participant who has no eligible survivor's annuity
11 beneficiary may elect to cease making contributions for
12 survivor's annuity under this subsection. A survivor's
13 annuity shall not be payable upon the death of a person who
14 has made this election, unless prior to that death the
15 election has been revoked and the amount of the contributions
16 that would have been paid under this subsection in the
17 absence of the election is paid to the System, together with
18 interest at the rate of 4% per year from the date the
19 contributions would have been made to the date of payment.
20 (c) Beginning July 1, 1967, each participant shall
21 contribute 1% of salary towards the cost of automatic
22 increase in annuity provided in Section 2-119.1. These
23 contributions shall be made concurrently with contributions
24 for retirement annuity purposes.
25 (d) In addition, each participant serving as an officer
26 of the General Assembly shall contribute, for the same
27 purposes and at the same rates as are required of a regular
28 participant, on each additional payment received as an
29 officer. If the participant serves as an officer for at
30 least 2 but less than 4 years, he or she shall contribute an
31 amount equal to the amount that would have been contributed
32 had the participant served as an officer for 4 years.
33 Persons who serve as officers in the 87th General Assembly
34 but cannot receive the additional payment to officers because
35 of the ban on increases in salary during their terms may
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1 nonetheless make contributions based on those additional
2 payments for the purpose of having the additional payments
3 included in their highest salary for annuity purposes;
4 however, persons electing to make these additional
5 contributions must also pay an amount representing the
6 corresponding employer contributions, as calculated by the
7 System.
8 (Source: P.A. 86-273; 87-1265.)
9 (40 ILCS 5/2-126.1) (from Ch. 108 1/2, par. 2-126.1)
10 Sec. 2-126.1. Pickup of contributions.
11 (a) The State shall pick up the participant
12 contributions required under Section 2-126 for all salary
13 earned after December 31, 1981. The contributions so picked
14 up shall be treated as employer contributions in determining
15 tax treatment under the United States Internal Revenue Code.
16 The State shall pay these participant contributions from the
17 same source of funds which is used in paying salary to the
18 participant. The State may pick up these contributions by a
19 reduction in the cash salary of the participant. If
20 participant contributions are picked up they shall be treated
21 for all purposes of this Article 2 in the same manner as
22 participant contributions that were made prior to the date
23 that the pick up of contributions began.
24 (b) Subject to the requirements of federal law, a
25 participant may elect to have the employer pick up optional
26 contributions that the participant has elected to pay to the
27 System, and the contributions so picked up shall be treated
28 as employer contributions for the purposes of determining
29 federal tax treatment. The employer shall pick up the
30 contributions by a reduction in the cash salary of the
31 participant and shall pay the contributions from the same
32 fund that is used to pay earnings to the participant. The
33 election to have optional contributions picked up is
34 irrevocable and the optional contributions may not thereafter
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1 be prepaid, by direct payment or otherwise. If the provision
2 authorizing the optional contribution requires payment by a
3 stated date (rather than the date of withdrawal or
4 retirement), that requirement shall be deemed to have been
5 satisfied if (i) on or before the stated date the participant
6 executes a valid irrevocable election to have the
7 contributions picked up under this subsection, and (ii) the
8 picked-up contributions are in fact paid to the System as
9 provided in the election.
10 (Source: P.A. 90-448, eff. 8-16-97.)
11 (40 ILCS 5/3-114.3) (from Ch. 108 1/2, par. 3-114.3)
12 Sec. 3-114.3. Heart attack suffered in performance of
13 duties. Any police officer who suffers a heart attack as a
14 result of the performance and discharge of police duty shall
15 be considered as having been injured in the performance of an
16 act of duty and shall be eligible for the benefits provided
17 under this Article for police officers injured in the
18 performance of an act of duty or, if applicable, the benefits
19 provided in Section 3-114.6.
20 (Source: P.A. 83-1440.)
21 (40 ILCS 5/3-114.4) (from Ch. 108 1/2, par. 3-114.4)
22 Sec. 3-114.4. Return to active duty after disability. A
23 police officer who receives a disability pension under
24 Section Sections 3-114.1, or 3-114.2, or 3-114.6 for more
25 than 2 years and who returns to active duty must remain in
26 active police service for at least 5 years before becoming
27 eligible for a disability pension greater than the pension
28 paid for the prior disability.
29 (Source: P.A. 83-1440.)
30 (40 ILCS 5/3-114.6 new)
31 Sec. 3-114.6. Occupational disease disability pension.
32 (a) This Section applies only to police officers who are
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1 employed by a municipality with a combined police and fire
2 department and who have regular firefighting duties in
3 addition to their law enforcement duties.
4 (b) The General Assembly finds that service in a police
5 department that also has firefighting duties requires
6 officers to perform unusual tasks in times of stress and
7 danger; that officers are subject to exposure to extreme heat
8 or extreme cold in certain seasons while performing their
9 duties; that they are required to work in the midst of and
10 are subject to heavy smoke fumes and carcinogenic, poisonous,
11 toxic, or chemical gases from fires; and that these
12 conditions exist and arise out of or in the course of
13 employment.
14 (c) An active officer with 5 or more years of creditable
15 service who is found to be unable to perform his or her
16 duties in the department by reason of heart disease,
17 tuberculosis, or any disease of the lungs or respiratory
18 tract, resulting from service as an officer, is entitled to
19 an occupational disease disability pension during any period
20 of such disability for which he or she has no right to
21 receive salary.
22 An active officer who has completed 5 or more years of
23 service and is unable to perform his or her duties in the
24 department by reason of a disabling cancer, which develops or
25 manifests itself during a period while the officer is in the
26 service of the department, is entitled to receive an
27 occupational disease disability benefit during any period of
28 such disability for which he or she does not have a right to
29 receive salary. In order to receive this occupational
30 disease disability benefit, the cancer must be of a type that
31 may be caused by exposure to heat, radiation, or a known
32 carcinogen as defined by the International Agency for
33 Research on Cancer.
34 An officer who, after the effective date of this
35 amendatory Act of 1998, enters the service of a combined
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1 police and fire department and has regular firefighting
2 duties shall be examined by one or more practicing physicians
3 appointed by the board. If the examination discloses
4 impairment of the heart, lungs, or respiratory tract, or the
5 existence of cancer, the officer shall not be entitled to an
6 occupational disease disability pension under this Section
7 unless and until a subsequent examination reveals no such
8 impairment or cancer.
9 The occupational disease disability pension shall be 65%
10 of the salary attached to the rank held by the officer at the
11 time of his or her removal from the municipality's department
12 payroll.
13 The occupational disease disability pension is payable to
14 the officer during the period of the disability. If the
15 disability ceases before the death of the officer, the
16 disability pension payable under this Section shall also
17 cease and the officer thereafter shall receive such pension
18 benefits as are provided in accordance with other provisions
19 of this Article.
20 If an officer dies while still disabled and receiving a
21 disability pension under this Section, the disability pension
22 shall continue to be paid to the officer's survivors in the
23 sequence provided in Section 3-112.
24 (40 ILCS 5/3-121) (from Ch. 108 1/2, par. 3-121)
25 Sec. 3-121. Marriage and remarriage. The pensions
26 provided in Sections 3-112, 3-114.1, and 3-114.2, and 3-114.6
27 shall not be paid to a child or dependent parent after
28 marriage or remarriage of the child or dependent parent
29 following the death of the police officer.
30 The pensions provided in Sections 3-112, 3-114.1 and
31 3-114.2 shall not be paid to a surviving spouse after
32 remarriage following the death of the police officer, if the
33 remarriage occurs (i) prior to January 1, 1974 or (ii) after
34 December 31, 1974 but before the effective date of this
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1 amendatory Act of 1995. Remarriage on or after the effective
2 date of this amendatory Act of 1995 does not affect the
3 surviving spouse's eligibility for those pensions, regardless
4 of whether the deceased police officer was in service on or
5 after that effective date. A surviving spouse whose pension
6 was terminated due to remarriage during 1974, and who applies
7 for reinstatement of that pension before January 1, 1990,
8 shall be entitled to have the pension reinstated beginning on
9 January 1, 1990.
10 (Source: P.A. 89-408, eff. 11-15-95.)
11 (40 ILCS 5/5-156) (from Ch. 108 1/2, par. 5-156)
12 Sec. 5-156. Proof of duty or ordinary disability -
13 Physical examinations. Proof of duty, occupational disease,
14 or ordinary disability shall be furnished to the board by at
15 least one licensed and practicing physician appointed by the
16 board. In cases where the board requests an applicant to get
17 a second opinion, the applicant must select a physician from
18 a list of qualified licensed and practicing physicians who
19 specialize in the various medical areas related to duty
20 injuries and illnesses, as established by the board. The
21 board may require other evidence of disability. A disabled
22 policeman who receives a duty, occupational disease, or
23 ordinary disability benefit shall be examined at least once a
24 year by one or more physicians appointed by the board. When
25 the disability ceases, the board shall discontinue payment of
26 the benefit, and the policeman shall be returned to active
27 service.
28 (Source: P.A. 86-272.)
29 (40 ILCS 5/5-157) (from Ch. 108 1/2, par. 5-157)
30 Sec. 5-157. Administration of disability benefits.
31 If a policeman who is granted duty or ordinary disability
32 benefit refuses to submit to examination by a physician
33 appointed by the board, he shall have no further right to
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1 receive the benefit.
2 A policeman who has withdrawn from service while disabled
3 and entered upon annuity prior to the effective date, and who
4 has thereafter been reinstated as a policeman, shall have no
5 right to ordinary disability benefit in excess of the amount
6 previously received unless he serves at least one year after
7 such reinstatement. This provision shall apply throughout
8 the duration of any disability incurred by the policeman
9 within one year after his reinstatement resulting from any
10 cause other than injury incurred in the performance of an act
11 of duty.
12 A policeman who assumes regular employment for
13 compensation, while in receipt of ordinary or duty disability
14 benefits, shall not be entitled to receive any amount of such
15 disability benefits which, when added to his compensation for
16 such employment during disability, would exceed 150% of the
17 rate of salary which would be paid to him if he were working
18 in his regularly appointed civil service position as a
19 policeman; or, from and after January 1, 1970, the rate of
20 salary on which his disability benefit is based. The changes
21 made to this Section by this amendatory Act of 1998 are not
22 limited to persons in service on or after the effective date
23 of this amendatory Act.
24 Disability benefit shall not be paid for any part of time
25 for which a disabled policeman shall receive any part of his
26 salary.
27 Except as herein otherwise provided, disability benefit
28 shall not be paid for any disability based upon or caused by
29 any mental or physical defect which the policeman had at the
30 time he entered the police service.
31 Disability benefit shall not be allowed to any policeman
32 who re-enters the public service in any capacity where his
33 salary is payable in whole or in part by taxes levied upon
34 taxable property in the city in which this Article is in
35 effect, or out of special revenues of any department of the
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1 city. The disability benefit shall be suspended during the
2 period he is in the public service for compensation, and
3 shall be resumed when he withdraws from such service.
4 Any disability benefit paid in violation of this Section
5 or of this Article shall be construed to have been paid in
6 error, and the amounts so paid shall be charged as a debit in
7 the account of any person to whom the same was paid and shall
8 be deducted from any moneys thereafter payable to such person
9 out of this fund, or to the widow, heirs or estate of such
10 person.
11 (Source: P.A. 76-847.)
12 (40 ILCS 5/5-167.4) (from Ch. 108 1/2, par. 5-167.4)
13 Sec. 5-167.4. Widow annuitant minimum annuity.
14 (a) Notwithstanding any other provision of this Article,
15 beginning January 1, 1996, the minimum amount of widow's
16 annuity payable to any person who is entitled to receive a
17 widow's annuity under this Article is $700 per month, without
18 regard to whether the deceased policeman is in service on or
19 after the effective date of this amendatory Act of 1995.
20 Notwithstanding any other provision of this Article,
21 beginning January 1, 1999, the minimum amount of widow's
22 annuity payable to any person who is entitled to receive a
23 widow's annuity under this Article is $800 per month, without
24 regard to whether the deceased policeman is in service on or
25 after the effective date of this amendatory Act of 1998.
26 (b) Effective January 1, 1994, the minimum amount of
27 widow's annuity shall be $700 per month for the following
28 classes of widows, without regard to whether the deceased
29 policeman is in service on or after the effective date of
30 this amendatory Act of 1993: (1) the widow of a policeman who
31 dies in service with at least 10 years of service credit, or
32 who dies in service after June 30, 1981; and (2) the widow of
33 a policeman who withdraws from service with 20 or more years
34 of service credit and does not withdraw a refund, provided
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1 that the widow is married to the policeman before he
2 withdraws from service.
3 (c) The city, in addition to the contributions otherwise
4 made by it under the other provisions of this Article, shall
5 make such contributions as are necessary for the minimum
6 widow's annuities provided under this Section in the manner
7 prescribed in Section 5-175.
8 (Source: P.A. 89-12, eff. 4-20-95.)
9 (40 ILCS 5/5-168) (from Ch. 108 1/2, par. 5-168)
10 Sec. 5-168. Financing.
11 (a) Except as expressly provided in this Section, the
12 city shall levy a tax annually upon all taxable property
13 therein for the purpose of providing revenue for the fund.
14 The tax shall be at a rate that will produce a sum which,
15 when added to the amounts deducted from the policemen's
16 salaries and the amounts deposited in accordance with
17 subsection (g), is sufficient for the purposes of the fund.
18 For the years 1968 and 1969, the city council shall levy
19 a tax annually at a rate on the dollar of the assessed
20 valuation of all taxable property that will produce, when
21 extended, not to exceed $9,700,000. Beginning with the year
22 1970 and each year thereafter the city council shall levy a
23 tax annually at a rate on the dollar of the assessed
24 valuation of all taxable property that will produce when
25 extended an amount not to exceed the total amount of
26 contributions by the policemen to the Fund made in the
27 calendar year 2 years before the year for which the
28 applicable annual tax is levied, multiplied by 1.40 for the
29 tax levy year 1970; by 1.50 for the year 1971; by 1.65 for
30 1972; by 1.85 for 1973; by 1.90 for 1974; by 1.97 for 1975
31 through 1981; by 2.00 for 1982 and for each year thereafter.
32 (b) The tax shall be levied and collected in like manner
33 with the general taxes of the city, and is in addition to all
34 other taxes which the city is now or may hereafter be
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1 authorized to levy upon all taxable property therein, and is
2 exclusive of and in addition to the amount of tax the city is
3 now or may hereafter be authorized to levy for general
4 purposes under any law which may limit the amount of tax
5 which the city may levy for general purposes. The county
6 clerk of the county in which the city is located, in reducing
7 tax levies under Section 8-3-1 of the Illinois Municipal
8 Code, shall not consider the tax herein authorized as a part
9 of the general tax levy for city purposes, and shall not
10 include the tax in any limitation of the percent of the
11 assessed valuation upon which taxes are required to be
12 extended for the city.
13 (c) On or before January 10 of each year, the board
14 shall notify the city council of the requirement that the tax
15 herein authorized be levied by the city council for that
16 current year. The board shall compute the amounts necessary
17 for the purposes of this fund to be credited to the reserves
18 established and maintained within the fund; shall make an
19 annual determination of the amount of the required city
20 contributions; and shall certify the results thereof to the
21 city council.
22 As soon as any revenue derived from the tax is collected
23 it shall be paid to the city treasurer of the city and shall
24 be held by him for the benefit of the fund in accordance with
25 this Article.
26 (d) If the funds available are insufficient during any
27 year to meet the requirements of this Article, the city may
28 issue tax anticipation warrants against the tax levy for the
29 current fiscal year.
30 (e) The various sums, including interest, to be
31 contributed by the city, shall be taken from the revenue
32 derived from such tax or otherwise as expressly provided in
33 this Section. Any moneys of the city derived from any source
34 other than the tax herein authorized shall not be used for
35 any purpose of the fund nor the cost of administration
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1 thereof, unless applied to make the deposit expressly
2 authorized in this Section or the additional city
3 contributions required under subsection (h).
4 (f) If it is not possible or practicable for the city to
5 make its contributions at the time that salary deductions are
6 made, the city shall make such contributions as soon as
7 possible thereafter, with interest thereon to the time it is
8 made.
9 (g) In lieu of levying all or a portion of the tax
10 required under this Section in any year, the city may deposit
11 with the city treasurer no later than March 1 of that year
12 for the benefit of the fund, to be held in accordance with
13 this Article, an amount that, together with the taxes levied
14 under this Section for that year, is not less than the amount
15 of the city contributions for that year as certified by the
16 board to the city council. The deposit may be derived from
17 any source legally available for that purpose, including, but
18 not limited to, the proceeds of city borrowings. The making
19 of a deposit shall satisfy fully the requirements of this
20 Section for that year to the extent of the amounts so
21 deposited. Amounts deposited under this subsection may be
22 used by the fund for any of the purposes for which the
23 proceeds of the tax levied under this Section may be used,
24 including the payment of any amount that is otherwise
25 required by this Article to be paid from the proceeds of that
26 tax.
27 (h) In addition to the contributions required under the
28 other provisions of this Article, by November 1 of the
29 following specified years, the city shall deposit with the
30 city treasurer for the benefit of the fund, to be held and
31 used in accordance with this Article, the following specified
32 amounts: $6,300,000 in 1999; $5,880,000 in 2000; $5,460,000
33 in 2001; $5,040,000 in 2002; $4,620,000 in 2003; $4,200,000
34 in 2004; $3,780,000 in 2005; $3,360,000 in 2006; $2,940,000
35 in 2007; $2,520,000 in 2008; $2,100,000 in 2009; $1,680,000
-17- LRB9011159EGfgccr6
1 in 2010; $1,260,000 in 2011; $840,000 in 2012; and $420,000
2 in 2013.
3 The additional city contributions required under this
4 subsection are intended to decrease the unfunded liability of
5 the fund and shall not decrease the amount of the city
6 contributions required under the other provisions of this
7 Article. The additional city contributions made under this
8 subsection may be used by the fund for any its lawful
9 purposes.
10 (Source: P.A. 89-12, eff. 4-20-95.)
11 (40 ILCS 5/5-172) (from Ch. 108 1/2, par. 5-172)
12 Sec. 5-172. Contributions by city for duty and
13 occupational disease disability benefits and supplemental
14 annuity. In lieu of salary deductions for annuity purposes,
15 the city shall contribute the required amounts for any period
16 during which a policeman receives a duty disability benefit
17 or occupational disease disability benefit. The
18 contributions shall be credited to the disabled policeman and
19 shall be regarded for all purposes hereof as sums deducted
20 from his salary.
21 The city shall also contribute all amounts ordinarily
22 contributed by it for annuity purposes for the policeman as
23 though he were in active discharge of his duties during such
24 disability.
25 To provide supplemental annuity, the city shall
26 contribute such equal sums annually, from the date of the
27 policeman's death, which if improved by interest will be
28 sufficient, when payment of compensation annuity ceases, to
29 provide supplemental annuity to the widow for life.
30 (Source: P.A. 81-1536.)
31 (40 ILCS 5/5-204) (from Ch. 108 1/2, par. 5-204)
32 Sec. 5-204. Duty disability reserve. Amounts contributed
33 by the city for duty disability benefit, occupational disease
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1 disability benefit, child's disability benefit, and
2 compensation annuity shall be credited to this reserve, and
3 all such benefits and annuities shall be charged to it.
4 (Source: Laws 1963, p. 161.)
5 (40 ILCS 5/6-128.4) (from Ch. 108 1/2, par. 6-128.4)
6 Sec. 6-128.4. Minimum widow's annuities.
7 (a) Notwithstanding any other provision of this Article,
8 beginning January 1, 1996, the minimum amount of widow's
9 annuity payable to any person who is entitled to receive a
10 widow's annuity under this Article is $700 per month, without
11 regard to whether the deceased fireman is in service on or
12 after the effective date of this amendatory Act of 1995.
13 (b) Notwithstanding Section 6-128.3, beginning January
14 1, 1994, the minimum widow's annuity under this Article shall
15 be $700 per month for (1) all persons receiving widow's
16 annuities on that date who are survivors of employees who
17 retired at age 50 or over with at least 20 years of service,
18 and (2) persons who become eligible for widow's annuities and
19 are survivors of employees who retired at age 50 or over with
20 at least 20 years of service.
21 (c) Notwithstanding Section 6-128.3, beginning January
22 1, 1999, the minimum widow's annuity under this Article shall
23 be $800 per month for (1) all persons receiving widow's
24 annuities on that date who are survivors of employees who
25 retired at age 50 or over with at least 20 years of service,
26 and (2) persons who become eligible for widow's annuities and
27 are survivors of employees who retired at age 50 or over with
28 at least 20 years of service.
29 (Source: P.A. 89-136, eff. 7-14-95.)
30 (40 ILCS 5/6-165) (from Ch. 108 1/2, par. 6-165)
31 Sec. 6-165. Financing; tax.
32 (a) Except as expressly provided in this Section, each
33 city shall levy a tax annually upon all taxable property
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1 therein for the purpose of providing revenue for the fund.
2 For the years prior to the year 1960, the tax rate shall be
3 as provided for in the "Firemen's Annuity and Benefit Fund of
4 the Illinois Municipal Code". The tax, from and after
5 January 1, 1968 to and including the year 1971, shall not
6 exceed .0863% of the value, as equalized or assessed by the
7 Department of Revenue, of all taxable property in the city.
8 Beginning with the year 1972 and each year thereafter the
9 city shall levy a tax annually at a rate on the dollar of the
10 value, as equalized or assessed by the Department of Revenue
11 of all taxable property within such city that will produce,
12 when extended, not to exceed an amount equal to the total
13 amount of contributions by the employees to the fund made in
14 the calendar year 2 years prior to the year for which the
15 annual applicable tax is levied, multiplied by 2.23 through
16 the calendar year 1981, and by 2.26 for the year 1982 and for
17 each year thereafter.
18 To provide revenue for the ordinary death benefit
19 established by Section 6-150 of this Article, in addition to
20 the contributions by the firemen for this purpose, the city
21 council shall for the year 1962 and each year thereafter
22 annually levy a tax, which shall be in addition to and
23 exclusive of the taxes authorized to be levied under the
24 foregoing provisions of this Section, upon all taxable
25 property in the city, as equalized or assessed by the
26 Department of Revenue, at such rate per cent of the value of
27 such property as shall be sufficient to produce for each year
28 the sum of $142,000.
29 The amounts produced by the taxes levied annually,
30 together with the deposit expressly authorized in this
31 Section, shall be sufficient, when added to the amounts
32 deducted from the salaries of firemen and applied to the
33 fund, to provide for the purposes of the fund.
34 (b) The taxes shall be levied and collected in like
35 manner with the general taxes of the city, and shall be in
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1 addition to all other taxes which the city may levy upon all
2 taxable property therein and shall be exclusive of and in
3 addition to the amount of tax the city may levy for general
4 purposes under Section 8-3-1 of the Illinois Municipal Code,
5 approved May 29, 1961, as amended, or under any other law or
6 laws which may limit the amount of tax which the city may
7 levy for general purposes.
8 (c) The amounts of the taxes to be levied in each year
9 shall be certified to the city council by the board.
10 (d) As soon as any revenue derived from such taxes is
11 collected, it shall be paid to the city treasurer and held
12 for the benefit of the fund, and all such revenue shall be
13 paid into the fund in accordance with the provisions of this
14 Article.
15 (e) If the funds available are insufficient during any
16 year to meet the requirements of this Article, the city may
17 issue tax anticipation warrants, against the tax levies
18 herein authorized for the current fiscal year.
19 (f) The various sums, hereinafter stated, including
20 interest, to be contributed by the city, shall be taken from
21 the revenue derived from the taxes or otherwise as expressly
22 provided in this Section. Except for defraying the cost of
23 administration of the fund during the calendar year in which
24 a city first attains a population of 500,000 and comes under
25 the provisions of this Article and the first calendar year
26 thereafter, any money of the city derived from any source
27 other than these taxes or the sale of tax anticipation
28 warrants shall not be used to provide revenue for the fund,
29 nor to pay any part of the cost of administration thereof,
30 unless applied to make the deposit expressly authorized in
31 this Section or the additional city contributions required
32 under subsection (h).
33 (g) In lieu of levying all or a portion of the tax
34 required under this Section in any year, the city may deposit
35 with the city treasurer no later than March 1 of that year
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1 for the benefit of the fund, to be held in accordance with
2 this Article, an amount that, together with the taxes levied
3 under this Section for that year, is not less than the amount
4 of the city contributions for that year as certified by the
5 board to the city council. The deposit may be derived from
6 any source legally available for that purpose, including, but
7 not limited to, the proceeds of city borrowings. The making
8 of a deposit shall satisfy fully the requirements of this
9 Section for that year to the extent of the amounts so
10 deposited. Amounts deposited under this subsection may be
11 used by the fund for any of the purposes for which the
12 proceeds of the taxes levied under this Section may be used,
13 including the payment of any amount that is otherwise
14 required by this Article to be paid from the proceeds of
15 those taxes.
16 (h) In addition to the contributions required under the
17 other provisions of this Article, by November 1 of the
18 following specified years, the city shall deposit with the
19 city treasurer for the benefit of the fund, to be held and
20 used in accordance with this Article, the following specified
21 amounts: $6,300,000 in 1999; $5,880,000 in 2000; $5,460,000
22 in 2001; $5,040,000 in 2002; $4,620,000 in 2003; $4,200,000
23 in 2004; $3,780,000 in 2005; $3,360,000 in 2006; $2,940,000
24 in 2007; $2,520,000 in 2008; $2,100,000 in 2009; $1,680,000
25 in 2010; $1,260,000 in 2011; $840,000 in 2012; and $420,000
26 in 2013.
27 The additional city contributions required under this
28 subsection are intended to decrease the unfunded liability of
29 the fund and shall not decrease the amount of the city
30 contributions required under the other provisions of this
31 Article. The additional city contributions made under this
32 subsection may be used by the fund for any its lawful
33 purposes.
34 (Source: P.A. 89-136, eff. 7-14-95.)
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1 (40 ILCS 5/7-146) (from Ch. 108 1/2, par. 7-146)
2 Sec. 7-146. Temporary disability benefits - Eligibility.
3 Temporary disability benefits shall be payable to
4 participating employees as hereinafter provided.
5 (a) The participating employee shall be considered
6 temporarily disabled if:
7 1. He is unable to perform the duties of any position
8 which might reasonably be assigned to him by his employing
9 municipality or instrumentality thereof or participating
10 instrumentality due to mental or physical disability caused
11 by bodily injury or disease, other than as a result of
12 self-inflicted injury or addiction to narcotic drugs;
13 2. The Board has received written certifications from at
14 least 1 licensed and practicing physician and the governing
15 body of the employing municipality or instrumentality thereof
16 or participating instrumentality stating that the employee
17 meets the conditions set forth in subparagraph 1 of this
18 paragraph (a).
19 (b) A temporary disability benefit shall be payable to a
20 temporarily disabled employee provided:
21 1. He:
22 (i) has at least one 1 year of service immediately
23 preceding at the date the temporary disability was incurred
24 and has made contributions to the fund for at least the
25 number of months of service normally required in his position
26 during a 12-month period, or has at least 5 years of service
27 credit, the last year of which immediately precedes such
28 date; or
29 (ii) had qualified under clause (i) above, but had an
30 interruption in service with the same participating
31 municipality or participating instrumentality of not more
32 than 3 months in the 12 months preceding the date the
33 temporary disability was incurred and was not paid a
34 separation benefit; or
35 (iii) had qualified under clause (i) above, but had an
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1 interruption after 20 or more years of creditable service,
2 was not paid a separation benefit, and returned to service
3 prior to the date the disability was incurred.
4 Item (iii) of this subdivision shall apply to all
5 employees whose disabilities were incurred on or after July
6 1, 1985, and any such employee who becomes eligible for a
7 disability benefit under item (iii) shall be entitled to
8 receive a lump sum payment of any accumulated disability
9 benefits which may accrue from the date the disability was
10 incurred until the effective date of this amendatory Act of
11 1987.
12 Periods of qualified leave granted in compliance with the
13 federal Family and Medical Leave Act shall be ignored for
14 purposes of determining the number of consecutive months of
15 employment under this subdivision (b)1.
16 2. He has been temporarily disabled for at least 30
17 days, except where a former temporary or permanent and total
18 disability has reoccurred within 6 months after the employee
19 has returned to service.
20 3. He is receiving no earnings from a participating
21 municipality or instrumentality thereof or participating
22 instrumentality, except as allowed under subsection (f) of
23 Section 7-152.
24 4. He has not refused to submit to a reasonable physical
25 examination by a physician appointed by the Board.
26 5. His disability is not the result of a mental or
27 physical condition which existed on the earliest date of
28 service from which he has uninterrupted service, including
29 prior service, at the date of his disability, provided that
30 this limitation shall not be applicable to a participating
31 employee who: (i) on the date of disability has 5 years of
32 creditable service, exclusive of creditable service for
33 periods of disability; or (ii) received no medical treatment
34 for the condition for the 3 years immediately prior to such
35 earliest date of service.
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1 6. He is not separated from the service of the
2 participating municipality or instrumentality thereof or
3 participating instrumentality which employed him on the date
4 his temporary disability was incurred; for the purposes of
5 payment of temporary disability benefits, a participating
6 employee, whose employment relationship is terminated by his
7 employing municipality, shall be deemed not to be separated
8 from the service of his employing municipality or
9 participating instrumentality if he continues disabled by the
10 same condition and so long as he is otherwise entitled to
11 such disability benefit.
12 (Source: P.A. 86-272; 87-740.)
13 (40 ILCS 5/7-150) (from Ch. 108 1/2, par. 7-150)
14 Sec. 7-150. Total and permanent disability benefits -
15 Eligibility. Total and permanent disability benefits shall be
16 payable to participating employees as hereinafter provided,
17 including those employees receiving disability benefit on
18 July 1, 1962.
19 (a) A participating employee shall be considered totally
20 and permanently disabled if:
21 1. He is unable to engage in any gainful activity
22 because of any medically determinable physical or mental
23 impairment which can be expected to result in death or be of
24 a long continued and indefinite duration, other than as a
25 result of self-inflicted injury or addiction to narcotic
26 drugs;
27 2. The Board has received a written certification by at
28 least 1 licensed and practicing physician stating that the
29 employee meets the qualifications of subparagraph 1 of this
30 paragraph (a).
31 (b) A totally and permanently disabled employee is
32 entitled to a permanent disability benefit provided:
33 1. He has exhausted his temporary disability benefits.
34 2. He:
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1 (i) has at least one year of service immediately
2 preceding the date the disability was incurred and has made
3 contributions to the fund for at least the number of months
4 of service normally required in his position during a 12
5 month period, or has at least 5 years of service credit, the
6 last year of which immediately preceded the date the
7 disability was incurred; or
8 (ii) had qualified under clause (i) above, but had an
9 interruption in service with the same participating
10 municipality or participating instrumentality of not more
11 than 3 months in the 12 months preceding the date the
12 temporary disability was incurred and was not paid a
13 separation benefit; or
14 (iii) had qualified under clause (i) above, but had an
15 interruption after 20 or more years of creditable service,
16 was not paid a separation benefit, and returned to service
17 prior to the date the disability was incurred.
18 Item (iii) of this subdivision shall apply to all
19 employees whose disabilities were incurred on or after July
20 1, 1985, and any such employee who becomes eligible for a
21 disability benefit under item (iii) shall be entitled to
22 receive a lump sum payment of any accumulated disability
23 benefits which may accrue from the date the disability was
24 incurred until the effective date of this amendatory Act of
25 1987.
26 Periods of qualified leave granted in compliance with the
27 federal Family and Medical Leave Act shall be ignored for
28 purposes of determining the number of consecutive months of
29 employment under this subdivision (b)2.
30 3. He is receiving no earnings from a participating
31 municipality or instrumentality thereof or participating
32 instrumentality, except as allowed under subsection (f) of
33 Section 7-152.
34 4. He has not refused to submit to a reasonable physical
35 examination by a physician appointed by the Board.
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1 5. His disability is not the result of a mental or
2 physical condition which existed on the earliest date of
3 service from which he has uninterrupted service, including
4 prior service, at the date of his disability, provided that
5 this limitation shall not be applicable to a participating
6 employee who, without receiving a disability benefit,
7 receives 5 years of creditable service.
8 6. He is not separated from the service of his employing
9 participating municipality or instrumentality thereof or
10 participating instrumentality on the date his temporary
11 disability was incurred; for the purposes of payment of total
12 and permanent disability benefits, a participating employee,
13 whose employment relationship is terminated by his employing
14 municipality, shall be deemed not to be separated from the
15 service of his employing municipality or participating
16 instrumentality if he continues disabled by the same
17 condition and so long as he is otherwise entitled to such
18 disability benefit.
19 7. He has not refused to apply for a disability benefit
20 under the Federal Social Security Act at the request of the
21 Board.
22 (c) A participating employee shall remain eligible and
23 may make application for a total and permanent disability
24 benefit within 90 days after the termination of his temporary
25 disability benefits or within such longer period terminating
26 at the end of the period during which his employing
27 municipality is prevented from employing him by reason of any
28 statutory prohibition.
29 (Source: P.A. 86-272; 87-740.)
30 (40 ILCS 5/7-159) (from Ch. 108 1/2, par. 7-159)
31 Sec. 7-159. Surviving spouse annuity - refund of survivor
32 credits.
33 (a) Any employee annuitant who (1) upon the date a
34 retirement annuity begins is not then married, or (2) is
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1 married to a person who would not qualify for surviving
2 spouse annuity if the person died on such date, is entitled
3 to a refund of the survivor credits including interest
4 accumulated on the date the annuity begins, excluding
5 survivor credits and interest thereon credited during periods
6 of disability, and no spouse shall have a right to any
7 surviving spouse annuity from this Fund. If the employee
8 annuitant reenters service and upon subsequent retirement has
9 a spouse who would qualify for a surviving spouse annuity,
10 the employee annuitant may pay the fund the amount of the
11 refund plus interest at the effective rate at the date of
12 payment. The payment shall qualify the spouse for a
13 surviving spouse annuity and the amount paid shall be
14 considered as survivor contributions.
15 (b) Instead of a refund under subsection (a), the
16 retiring employee may elect to convert the amount of the
17 refund into an annuity, payable separately from the
18 retirement annuity. If the annuitant dies before the
19 guaranteed amount has been distributed, the remainder shall
20 be paid in a lump sum to the designated beneficiary of the
21 annuitant. The Board shall adopt any rules necessary for the
22 implementation of this subsection.
23 (Source: P. A. 77-2121.)
24 (40 ILCS 5/7-173.1) (from Ch. 108 1/2, par. 7-173.1)
25 Sec. 7-173.1. Additional contribution by sheriff's law
26 enforcement employees.
27 (a) Each sheriff's law enforcement employee shall make
28 an additional contribution of 1% of earnings, which shall be
29 considered as normal contributions. For earnings on or after
30 July 1, 1988, the additional contribution shall be 2% of
31 earnings.
32 This additional contribution shall be payable for
33 retroactive service periods which the employee elects to
34 establish and to periods of authorized leave of absence.
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1 (b) If the employee is awarded a retirement annuity
2 under Section 7-142 and not under Section 7-142.1, then the
3 additional contribution required under this Section shall be
4 refunded with interest or paid as provided in subsection (c).
5 If the employee returns to a participating status as a
6 sheriff's law enforcement employee, the employee may repay
7 the amount refunded with interest and upon subsequent
8 retirement be entitled to a recomputation of the retirement
9 annuity under Section 7-142.1 if the total service as a
10 sheriff's law enforcement employee meets the requirements of
11 that Section.
12 (c) Instead of a refund under subsection (b), the
13 retiring employee may elect to convert the amount of the
14 refund into an annuity, payable separately from the
15 retirement annuity. If the annuitant dies before the
16 guaranteed amount has been distributed, the remainder shall
17 be paid in a lump sum to the designated beneficiary of the
18 annuitant. The Board shall adopt any rules necessary for the
19 implementation of this subsection.
20 (Source: P.A. 85-941.)
21 (40 ILCS 5/7-173.2) (from Ch. 108 1/2, par. 7-173.2)
22 Sec. 7-173.2. Pickup of employee contributions.
23 (a) Until July 1, 1984, each participating municipality
24 and each participating instrumentality may elect, for all of
25 its employees, to pick up the employee contributions required
26 by subparagraphs 1 and 3 of subsection (a) of Section 7-173
27 and, in the case of sheriff's law enforcement employees,
28 required by Section 7-173.1. The pick up may be for employee
29 contributions on earnings received by employees after
30 December 31, 1981 and shall be applicable to the
31 contributions on total earnings paid in any month. The
32 decision to pick up contributions shall be made by the
33 governing body.
34 Beginning July 1, 1984, the pick up of employee
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1 contributions shall cease to be optional. Each participating
2 municipality and participating instrumentality shall pick up
3 the employee contributions required by subparagraphs 1 and 3
4 of subsection (a) of Section 7-173 and, in the case of
5 sheriff's law enforcement employees, contributions required
6 by Section 7-173.1, for all compensation earned after such
7 date.
8 (b) Contributions that are picked up shall be treated as
9 employer contributions in determining tax treatment under the
10 United States Internal Revenue Code. The employee
11 contribution shall be paid from the same source of funds as
12 is used in payment of earnings to the employee and may not be
13 paid from funds raised by the tax levy authorized by Section
14 7-171. The contributions shall be picked up by a reduction
15 in earnings payment to employees. Employee contributions
16 that are picked up shall be considered as earnings under
17 Section 7-114. The pick up shall not apply to contributions
18 made for additional contributions under subsection (a) 2 of
19 Section 7-173, authorized leave of absence under subsection
20 (a)4 of Section 7-139, out-of-state service under subsection
21 (a) 6 of Section 7-139, retroactive service under subsection
22 (a) 7 of Section 7-139 or repayments of separation of
23 benefits under Section 7-109. If a participating
24 municipality or participating instrumentality fails to report
25 participating employee earnings which should have been
26 reported to the fund and pays the employee the full amount of
27 earnings including employee contributions which should have
28 been picked up and forwarded to the fund, then the employee
29 shall make payment of the employee contributions to the fund
30 on behalf of employer and such contributions shall be
31 considered as picked up contributions if paid in the year the
32 earnings were received, or by January 31st of the following
33 year, and are reflected as picked up on reports to the
34 Internal Revenue Service. If they cannot be so reflected, or
35 if received after that date, they shall not be treated as
-30- LRB9011159EGfgccr6
1 picked up contributions. Picked up employee contributions
2 shall be considered as employee contributions in computing
3 benefits paid under this Article 7.
4 (c) Subject to the requirements of federal law, an
5 employee may elect to have the employer pick up optional
6 contributions that the employee has elected to pay to the
7 Fund, and the contributions so picked up shall be treated as
8 employer contributions for the purposes of determining
9 federal tax treatment. The employer shall pick up the
10 contributions by a reduction in the cash salary of the
11 employee and shall pay the contributions from the same source
12 of funds that is used to pay earnings to the employee. The
13 employee's election to have the optional contributions picked
14 up is irrevocable and the optional contributions may not
15 thereafter be prepaid, by direct payment or otherwise.
16 (Source: P.A. 84-812.)
17 (40 ILCS 5/8-137) (from Ch. 108 1/2, par. 8-137)
18 Sec. 8-137. Automatic increase in annuity.
19 (a) An employee who retired or retires from service
20 after December 31, 1959 and before January 1, 1987, having
21 attained age 60 or more, shall, in January of the year after
22 the year in which the first anniversary of retirement occurs,
23 have the amount of his then fixed and payable monthly annuity
24 increased by 1 1/2%, and such first fixed annuity as granted
25 at retirement increased by a further 1 1/2% in January of
26 each year thereafter. Beginning with January of the year
27 1972, such increases shall be at the rate of 2% in lieu of
28 the aforesaid specified 1 1/2%, and beginning with January of
29 the year 1984 such increases shall be at the rate of 3%.
30 Beginning in January of 1999, such increases shall be at the
31 rate of 3% of the currently payable monthly annuity,
32 including any increases previously granted under this
33 Article. An such employee who retires on annuity after
34 December 31, 1959 and before January 1, 1987, but before age
-31- LRB9011159EGfgccr6
1 60, shall receive such increases beginning in January of the
2 year after the year in which he attains age 60.
3 An employee who retires from service on or after January
4 1, 1987 shall, upon the first annuity payment date following
5 the first anniversary of the date of retirement, or upon the
6 first annuity payment date following attainment of age 60,
7 whichever occurs later, have his then fixed and payable
8 monthly annuity increased by 3%, and such annuity shall be
9 increased by an additional 3% of the original fixed annuity
10 on the same date each year thereafter. Beginning in January
11 of 1999, such increases shall be at the rate of 3% of the
12 currently payable monthly annuity, including any increases
13 previously granted under this Article.
14 (b) The foregoing provision is not applicable to an
15 employee retiring and receiving a term annuity, as herein
16 defined, nor to any otherwise qualified employee who retires
17 before he makes employee contributions (at the 1/2 of 1% rate
18 as provided in this Act) for this additional annuity for not
19 less than the equivalent of one full year. Such employee,
20 however, shall make arrangement to pay to the fund a balance
21 of such 1/2 of 1% contributions, based on his final salary,
22 as will bring such 1/2 of 1% contributions, computed without
23 interest, to the equivalent of or completion of one year's
24 contributions.
25 Beginning with January, 1960, each employee shall
26 contribute by means of salary deductions 1/2 of 1% of each
27 salary payment, concurrently with and in addition to the
28 employee contributions otherwise made for annuity purposes.
29 Each such additional contribution shall be credited to an
30 account in the prior service annuity reserve, to be used,
31 together with city contributions, to defray the cost of the
32 specified annuity increments. Any balance in such account at
33 the beginning of each calendar year shall be credited with
34 interest at the rate of 3% per annum.
35 Such additional employee contributions are not
-32- LRB9011159EGfgccr6
1 refundable, except to an employee who withdraws and applies
2 for refund under this Article, and in cases where a term
3 annuity becomes payable. In such cases his contributions
4 shall be refunded, without interest, and charged to such
5 account in the prior service annuity reserve.
6 (Source: P.A. 84-1472.)
7 (40 ILCS 5/8-137.1) (from Ch. 108 1/2, par. 8-137.1)
8 Sec. 8-137.1. Automatic increases in annuity for certain
9 heretofore retired participants. A retired municipal
10 employee who (a) is receiving annuity based on a service
11 credit of 20 or more years regardless of age at retirement or
12 based on a service credit of 15 or more years with retirement
13 at age 55 or over, and (b) does not qualify for the automatic
14 increases in annuity provided for in Section 8-137 of this
15 Article, and (c) elects to make a contribution to the Fund at
16 a time and manner prescribed by the Retirement Board, of a
17 sum equal to 1% of the amount of final monthly salary times
18 the number of full years of service on which the annuity was
19 based in those cases where the annuity was computed on the
20 money purchase formula and in those cases in which the
21 annuity was computed under the minimum annuity formula
22 provisions of this Article a sum equal to 1% of the average
23 monthly salary on which the annuity was based times such
24 number of full years of service, shall have his original
25 fixed and payable monthly amount of annuity increased in
26 January of the year following the year in which he attains
27 the age of 65 years, if such age of 65 years is attained in
28 the year 1969 or later, by an amount equal to 1-1/2%, and by
29 an equal additional 1-1/2% in January of each year
30 thereafter. Beginning with January of the year 1972, such
31 increases shall be at the rate of 2% in lieu of the aforesaid
32 specified 1 1/2%, and beginning January of the year 1984 such
33 increases shall be at the rate of 3%. Beginning in January
34 of 1999, such increases shall be at the rate of 3% of the
-33- LRB9011159EGfgccr6
1 currently payable monthly annuity, including any increases
2 previously granted under this Article.
3 Whenever the retired municipal employee receiving annuity
4 has attained the age of 66 or more in 1969, he shall have
5 such annuity increased in January, 1970 by an amount equal to
6 1-1/2% multiplied by the number equal to the number of months
7 of January elapsing from and including January of the year
8 immediately following the year he attained the age of 65 if
9 retired at or before age 65, or from and including January of
10 the year immediately following the year of retirement if
11 retired at an age greater than 65, to and including January,
12 1970, and by an equal additional 1-1/2% in January of each
13 year thereafter. Beginning with January of the year 1972,
14 such increases shall be at the rate of 2% in lieu of the
15 aforesaid specified 1 1/2%, and beginning January of the year
16 1984 such increases shall be at the rate of 3%. Beginning in
17 January of 1999, such increases shall be at the rate of 3% of
18 the currently payable monthly annuity, including any
19 increases previously granted under this Article.
20 To defray the annual cost of such increases, the annual
21 interest income of the Fund, accruing from investments held
22 by the Fund, exclusive of gains or losses on sales or
23 exchanges of assets during the year, over and above 4% a
24 year, shall be used to the extent necessary and available to
25 finance the cost of such increases for the following year,
26 and such amount shall be transferred as of the end of each
27 year, beginning with the year 1969, to a Fund account
28 designated as the Supplementary Payment Reserve from the
29 Investment and Interest Reserve set forth in Section 8-221.
30 The sums contributed by annuitants as provided for in this
31 Section shall also be placed in the aforesaid Supplementary
32 Payment Reserve and shall be applied and used for the
33 purposes of such Fund account, together with the aforesaid
34 interest.
35 In the event the monies in the Supplementary Payment
-34- LRB9011159EGfgccr6
1 Reserve in any year arising from: (1) the available interest
2 income as defined hereinbefore and accruing in the preceding
3 year above 4% a year and (2) the contributions by retired
4 persons, as set forth hereinbefore, are insufficient to make
5 the total payments to all persons estimated to be entitled to
6 the annuity increases specified hereinbefore, then (3) any
7 interest earnings over 4% a year beginning with the year 1969
8 which were not previously used to finance such increases and
9 which were transferred to the Prior Service Annuity Reserve
10 may be used to the extent necessary and available to provide
11 sufficient funds to finance such increases for the current
12 year, and such sums shall be transferred from the Prior
13 Service Annuity Reserve.
14 In the event the total monies available in the
15 Supplementary Payment Reserve from the preceding indicated
16 sources are insufficient to make the total payments to all
17 persons entitled to such increases for the year, a
18 proportionate amount computed as the ratio of the monies
19 available to the total of the total payments for that year
20 shall be paid to each person for that year.
21 The Fund shall be obligated for the payment of the
22 increases in annuity as provided for in this Section only to
23 the extent that the assets for such purpose, as specified
24 herein, are available.
25 (Source: P.A. 83-802.)
26 (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
27 Sec. 8-138. Minimum annuities - Additional provisions.
28 (a) An employee who withdraws after age 65 or more with
29 at least 20 years of service, for whom the amount of age and
30 service and prior service annuity combined is less than the
31 amount stated in this Section, shall from the date of
32 withdrawal, instead of all annuities otherwise provided, be
33 entitled to receive an annuity for life of $150 a year, plus
34 1 1/2% for each year of service, to and including 20 years,
-35- LRB9011159EGfgccr6
1 and 1 2/3% for each year of service over 20 years, of his
2 highest average annual salary for any 4 consecutive years
3 within the last 10 years of service immediately preceding the
4 date of withdrawal.
5 An employee who withdraws after 20 or more years of
6 service, before age 65, shall be entitled to such annuity, to
7 begin not earlier than upon attained age of 55 years if under
8 such age at withdrawal, reduced by 2% for each full year or
9 fractional part thereof that his attained age is less than
10 65, plus an additional 2% reduction for each full year or
11 fractional part thereof that his attained age when annuity is
12 to begin is less than 60 so that the total reduction at age
13 55 shall be 30%.
14 (b) An employee who withdraws after July 1, 1957, at age
15 60 or over, with 20 or more years of service, for whom the
16 age and service and prior service annuity combined, is less
17 than the amount stated in this paragraph, shall, from the
18 date of withdrawal, instead of such annuities, be entitled to
19 receive an annuity for life equal to 1 2/3% for each year of
20 service, of the highest average annual salary for any 5
21 consecutive years within the last 10 years of service
22 immediately preceding the date of withdrawal; provided, that
23 in the case of any employee who withdraws on or after July 1,
24 1971, such employee age 60 or over with 20 or more years of
25 service, shall receive an annuity for life equal to 1.67% for
26 each of the first 10 years of service; 1.90% for each of the
27 next 10 years of service; 2.10% for each year of service in
28 excess of 20 but not exceeding 30; and 2.30% for each year of
29 service in excess of 30, based on the highest average annual
30 salary for any 4 consecutive years within the last 10 years
31 of service immediately preceding the date of withdrawal.
32 An employee who withdraws after July 1, 1957 and before
33 January 1, 1988, with 20 or more years of service, before age
34 60 years is entitled to annuity, to begin not earlier than
35 upon attained age of 55 years, if under such age at
-36- LRB9011159EGfgccr6
1 withdrawal, as computed in the last preceding paragraph,
2 reduced 0.25% for each full month or fractional part thereof
3 that his attained age when annuity is to begin is less than
4 60 if the employee was born before January 1, 1936, or 0.5%
5 for each such month if the employee was born on or after
6 January 1, 1936.
7 Any employee born before January 1, 1936, who withdraws
8 with 20 or more years of service, and any employee with 20 or
9 more years of service who withdraws on or after January 1,
10 1988, may elect to receive, in lieu of any other employee
11 annuity provided in this Section, an annuity for life equal
12 to 1.80% for each of the first 10 years of service, 2.00% for
13 each of the next 10 years of service, 2.20% for each year of
14 service in excess of 20 but not exceeding 30, and 2.40% for
15 each year of service in excess of 30, of the highest average
16 annual salary for any 4 consecutive years within the last 10
17 years of service immediately preceding the date of
18 withdrawal, to begin not earlier than upon attained age of 55
19 years, if under such age at withdrawal, reduced 0.25% for
20 each full month or fractional part thereof that his attained
21 age when annuity is to begin is less than 60; except that an
22 employee retiring on or after January 1, 1988, at age 55 or
23 over but less than age 60, having at least 35 years of
24 service, or an employee retiring on or after July 1, 1990, at
25 age 55 or over but less than age 60, having at least 30 years
26 of service, or an employee retiring on or after the effective
27 date of this amendatory Act of 1997, at age 55 or over but
28 less than age 60, having at least 25 years of service, shall
29 not be subject to the reduction in retirement annuity because
30 of retirement below age 60.
31 However, in the case of an employee who retired on or
32 after January 1, 1985 but before January 1, 1988, at age 55
33 or older and with at least 35 years of service, and who was
34 subject under this subsection (b) to the reduction in
35 retirement annuity because of retirement below age 60, that
-37- LRB9011159EGfgccr6
1 reduction shall cease to be effective January 1, 1991, and
2 the retirement annuity shall be recalculated accordingly.
3 Any employee who withdraws on or after July 1, 1990, with
4 20 or more years of service, may elect to receive, in lieu of
5 any other employee annuity provided in this Section, an
6 annuity for life equal to 2.20% for each year of service of
7 the highest average annual salary for any 4 consecutive years
8 within the last 10 years of service immediately preceding the
9 date of withdrawal, to begin not earlier than upon attained
10 age of 55 years, if under such age at withdrawal, reduced
11 0.25% for each full month or fractional part thereof that his
12 attained age when annuity is to begin is less than 60; except
13 that an employee retiring at age 55 or over but less than age
14 60, having at least 30 years of service, shall not be subject
15 to the reduction in retirement annuity because of retirement
16 below age 60.
17 Any employee who withdraws on or after the effective date
18 of this amendatory Act of 1997 with 20 or more years of
19 service may elect to receive, in lieu of any other employee
20 annuity provided in this Section, an annuity for life equal
21 to 2.20%, for each year of service, of the highest average
22 annual salary for any 4 consecutive years within the last 10
23 years of service immediately preceding the date of
24 withdrawal, to begin not earlier than upon attainment of age
25 55 (age 50 if the employee has at least 30 years of service),
26 reduced 0.25% for each full month or remaining fractional
27 part thereof that the employee's attained age when annuity is
28 to begin is less than 60; except that an employee retiring at
29 age 50 or over with at least 30 years of service or at age 55
30 or over with at least 25 years of service shall not be
31 subject to the reduction in retirement annuity because of
32 retirement below age 60.
33 The maximum annuity payable under part (a) and (b) of
34 this Section shall not exceed 70% of highest average annual
35 salary in the case of an employee who withdraws prior to July
-38- LRB9011159EGfgccr6
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 this Section $1,500 is considered the minimum annual salary
4 for any year; and the maximum annual salary for the
5 computation of such annuity is $4,800 for any year before
6 1953, $6000 for the years 1953 to 1956, inclusive, and the
7 actual annual salary, as salary is defined in this Article,
8 for any year thereafter.
9 To preserve rights existing on December 31, 1959, for
10 participants and contributors on that date to the fund
11 created by the Court and Law Department Employees' Annuity
12 Act, who became participants in the fund provided for on
13 January 1, 1960, the maximum annual salary to be considered
14 for such persons for the years 1955 and 1956 is $7,500.
15 (c) For an employee receiving disability benefit, his
16 salary for annuity purposes under paragraphs (a) and (b) of
17 this Section, for all periods of disability benefit
18 subsequent to the year 1956, is the amount on which his
19 disability benefit was based.
20 (d) An employee with 20 or more years of service, whose
21 entire disability benefit credit period expires before
22 attainment of age 55 while still disabled for service, is
23 entitled upon withdrawal to the larger of (1) the minimum
24 annuity provided above, assuming he is then age 55, and
25 reducing such annuity to its actuarial equivalent as of his
26 attained age on such date or (2) the annuity provided from
27 his age and service and prior service annuity credits.
28 (e) The minimum annuity provisions do not apply to any
29 former municipal employee receiving an annuity from the fund
30 who re-enters service as a municipal employee, unless he
31 renders at least 3 years of additional service after the date
32 of re-entry.
33 (f) An employee in service on July 1, 1947, or who
34 became a contributor after July 1, 1947 and before attainment
35 of age 70, who withdraws after age 65, with less than 20
-39- LRB9011159EGfgccr6
1 years of service for whom the annuity has been fixed under
2 this Article shall, instead of the annuity so fixed, receive
3 an annuity as follows:
4 Such amount as he could have received had the accumulated
5 amounts for annuity been improved with interest at the
6 effective rate to the date of his withdrawal, or to
7 attainment of age 70, whichever is earlier, and had the city
8 contributed to such earlier date for age and service annuity
9 the amount that it would have contributed had he been under
10 age 65, after the date his annuity was fixed in accordance
11 with this Article, and assuming his annuity were computed
12 from such accumulations as of his age on such earlier date.
13 The annuity so computed shall not exceed the annuity which
14 would be payable under the other provisions of this Section
15 if the employee was credited with 20 years of service and
16 would qualify for annuity thereunder.
17 (g) Instead of the annuity provided in this Article, an
18 employee having attained age 65 with at least 15 years of
19 service who withdraws from service on or after July 1, 1971
20 and whose annuity computed under other provisions of this
21 Article is less than the amount provided under this
22 paragraph, is entitled to a minimum annuity for life equal to
23 1% of the highest average annual salary, as salary is defined
24 and limited in this Section for any 4 consecutive years
25 within the last 10 years of service for each year of service,
26 plus the sum of $25 for each year of service. The annuity
27 shall not exceed 60% of such highest average annual salary.
28 (g-1) Instead of any other retirement annuity provided
29 in this Article, an employee who has at least 10 years of
30 service and withdraws from service on or after January 1,
31 1999 may elect to receive a retirement annuity for life,
32 beginning no earlier than upon attainment of age 60, equal to
33 2.2% of final average salary for each year of service,
34 subject to a maximum of 75% of final average salary. For the
35 purpose of calculating this annuity, "final average salary"
-40- LRB9011159EGfgccr6
1 means the highest average annual salary for any 4 consecutive
2 years in the last 10 years of service.
3 (h) The minimum annuities provided under this Section
4 shall be paid in equal monthly installments.
5 (i) The amendatory provisions of part (b) and (g) of
6 this Section shall be effective July 1, 1971 and apply in the
7 case of every qualifying employee withdrawing on or after
8 July 1, 1971.
9 (j) The amendatory provisions of this amendatory Act of
10 1985 (P.A. 84-23) relating to the discount of annuity because
11 of retirement prior to attainment of age 60, and to the
12 retirement formula, for those born before January 1, 1936,
13 shall apply only to qualifying employees withdrawing on or
14 after July 18, 1985.
15 (k) Beginning on January 1, 1999 the effective date of
16 this amendatory Act of 1997, the minimum amount of employee's
17 annuity shall be $850 $550 per month for life for the
18 following classes of employees, without regard to the fact
19 that withdrawal occurred prior to the effective date of this
20 amendatory Act of 1998 1997:
21 (1) any employee annuitant alive and receiving a
22 life annuity on the effective date of this amendatory Act
23 of 1998 1997, except a reciprocal annuity;
24 (2) any employee annuitant alive and receiving a
25 term annuity on the effective date of this amendatory Act
26 of 1998 1997, except a reciprocal annuity;
27 (3) any employee annuitant alive and receiving a
28 reciprocal annuity on the effective date of this
29 amendatory Act of 1998 1997, whose service in this fund
30 is at least 5 years;
31 (4) any employee annuitant withdrawing after age 60
32 on or after the effective date of this amendatory Act of
33 1998 1997, with at least 10 years of service in this
34 fund.
35 The increases granted under items (1), (2) and (3) of
-41- LRB9011159EGfgccr6
1 this subsection (k) shall not be limited by any other Section
2 of this Act.
3 (Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
4 (40 ILCS 5/8-139) (from Ch. 108 1/2, par. 8-139)
5 Sec. 8-139. Reversionary annuity.
6 (a) An employee, prior to retirement on annuity, may
7 elect to take a lesser amount of annuity and provide, with
8 the actuarial value of the amount by which his annuity is
9 reduced, a reversionary annuity for a wife, husband, parent,
10 child, brother or sister. The option shall be exercised by
11 filing a written designation with the board prior to
12 retirement, and may be revoked by the employee at any time
13 before retirement. The death of the employee prior to his
14 retirement shall automatically void the option.
15 (b) The death of the designated reversionary annuitant
16 prior to the employee's retirement shall automatically void
17 the option. If the reversionary annuitant dies after the
18 employee's retirement, and before the death of the employee
19 annuitant, the reduced annuity being paid to the retired
20 employee annuitant shall be increased to the amount of
21 annuity before reduction for the reversionary annuity and no
22 reversionary annuity shall be payable.
23 The option is subject to the further condition that no
24 reversionary annuity shall be paid to a parent, child,
25 brother, or sister if the employee dies before the expiration
26 of 365 730 days from the date his written designation was
27 filed with the board, even though he has retired and is
28 receiving a reduced annuity.
29 (c) The employee exercising this option shall not reduce
30 his retirement annuity by more than $400 $200 a month, or
31 elect to provide a reversionary annuity of less than $50 per
32 month. No option shall be permitted if the reversionary
33 annuity for a widow, when added to the widow's annuity
34 payable under this Article, exceeds 100% 80% of the reduced
-42- LRB9011159EGfgccr6
1 annuity payable to the employee.
2 (d) A reversionary annuity shall begin on the day
3 following the death of the annuitant and shall be paid as
4 provided in Section 8-125.
5 (e) The increases in annuity provided in Section 8-137
6 of this Article shall, as to an employee so electing a
7 reduced annuity relate to the amount of the original annuity,
8 and such amount shall constitute the annuity on which such
9 automatic increases shall be based.
10 (f) For annuities elected after June 30, 1983, the
11 amount of the monthly reversionary annuity shall be
12 determined by multiplying the amount of the monthly reduction
13 in the employee's annuity by the factor in the following
14 table based on the age of the employee and the difference in
15 the age of the employee and the age of the reversionary
16 annuitant at the starting date of the employee's annuity:
17 Employee's Age
18 Reversionary
19 Annuitant's Age 55-57 58-60 61-63 64-66 67-69 70 &
20 Over
21 30 or more years 2.18 1.84 1.55 1.29 1.08 0.91
22 younger
23 25-29 years younger 2.29 1.94 1.63 1.37 1.15 0.97
24 20-24 years younger 2.44 2.07 1.75 1.48 1.25 1.06
25 15-19 years younger 2.65 2.26 1.92 1.63 1.39 1.19
26 10-14 years younger 2.94 2.53 2.16 1.85 1.59 1.37
27 5-9 years younger 3.35 2.90 2.51 2.16 1.88 1.64
28 0-4 years younger 3.93 3.44 3.00 2.61 2.29 2.02
29 1-5 years older 4.76 4.21 3.71 3.26 2.88 2.56
30 6-10 years older 5.93 5.30 4.71 4.16 3.70 3.29
31 11-15 years older 7.58 6.83 6.11 5.40 4.82 4.32
32 16-20 years older 9.84 8.93 8.02 7.13 6.43 5.87
33 21-25 years older 12.91 11.82 10.73 9.66 8.88 8.35
34 26-30 years older 17.15 15.96 14.80 13.65 12.97 12.82
35 31 or more years 23.34 22.32 21.45 20.62 20.85 23.28
-43- LRB9011159EGfgccr6
1 older
2 (Source: P.A. 90-31, eff. 6-27-97.)
3 (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
4 Sec. 8-150.1. Minimum annuities for widows. The widow
5 (otherwise eligible for widow's annuity under other Sections
6 of this Article 8) of an employee hereinafter described, who
7 retires from service or dies while in the service subsequent
8 to the effective date of this amendatory provision, and for
9 which widow the amount of widow's annuity and widow's prior
10 service annuity combined, fixed or provided for such widow
11 under other provisions of this Article is less than the
12 amount provided in this Section, shall, from and after the
13 date her otherwise provided annuity would begin, in lieu of
14 such otherwise provided widow's and widow's prior service
15 annuity, be entitled to the following indicated amount of
16 annuity:
17 (a) The widow of any employee who dies while in service
18 on or after the date on which he attains age 60 if the death
19 occurs before July 1, 1990, or on or after the date on which
20 he attains age 55 if the death occurs on or after July 1,
21 1990, with at least 20 years of service, or on or after the
22 date on which he attains age 50 if the death occurs on or
23 after the effective date of this amendatory Act of 1997 with
24 at least 30 years of service, shall be entitled to an annuity
25 equal to one-half of the amount of annuity which her deceased
26 husband would have been entitled to receive had he withdrawn
27 from the service on the day immediately preceding the date of
28 his death, conditional upon such widow having attained the
29 age of 60 or more years on such date if the death occurs
30 before July 1, 1990, or age 55 or more if the death occurs on
31 or after July 1, 1990, or age 50 or more if the death occurs
32 on or after January 1, 1998 and the employee is age 50 or
33 over with at least 30 years of service or age 55 or over with
34 at least 25 years of service. Except as provided in
-44- LRB9011159EGfgccr6
1 subsection (k), this widow's annuity shall not, however,
2 exceed the sum of $500 a month if the employee's death in
3 service occurs before January 23, 1987. The widow's annuity
4 shall not be limited to a maximum dollar amount if the
5 employee's death in service occurs on or after January 23,
6 1987.
7 If the employee dies in service before July 1, 1990, and
8 if such widow of such described employee shall not be 60 or
9 more years of age on such date of death, the amount provided
10 in the immediately preceding paragraph for a widow 60 or more
11 years of age, shall, in the case of such younger widow, be
12 reduced by 0.25% for each month that her then attained age is
13 less than 60 years if the employee was born before January 1,
14 1936 or dies in service on or after January 1, 1988, or by
15 0.5% for each month that her then attained age is less than
16 60 years if the employee was born on or after July 1, 1936
17 and dies in service before January 1, 1988.
18 If the employee dies in service on or after July 1, 1990,
19 and if the widow of the employee has not attained age 55 on
20 or before the employee's date of death, the amount otherwise
21 provided in this subsection (a) shall be reduced by 0.25% for
22 each month that her then attained age is less than 55 years;
23 except that if the employee dies in service on or after
24 January 1, 1998 at age 50 or over with at least 30 years of
25 service or at age 55 or over with at least 25 years of
26 service, there shall be no reduction due to the widow's age
27 if she has attained age 50 on or before the employee's date
28 of death, and if the widow has not attained age 50 on or
29 before the employee's date of death the amount otherwise
30 provided in this subsection (a) shall be reduced by 0.25% for
31 each month that her then attained age is less than 50 years.
32 (b) The widow of any employee who dies subsequent to the
33 date of his retirement on annuity, and who so retired on or
34 after the date on which he attained the age of 60 or more
35 years if retirement occurs before July 1, 1990, or on or
-45- LRB9011159EGfgccr6
1 after the date on which he attained age 55 if retirement
2 occurs on or after July 1, 1990, with at least 20 years of
3 service, or on or after the date on which he attained age 50
4 if the retirement occurs on or after the effective date of
5 this amendatory Act of 1997 with at least 30 years of
6 service, shall be entitled to an annuity equal to one-half of
7 the amount of annuity which her deceased husband received as
8 of the date of his retirement on annuity, conditional upon
9 such widow having attained the age of 60 or more years on the
10 date of her husband's retirement on annuity if retirement
11 occurs before July 1, 1990, or age 55 or more if retirement
12 occurs on or after July 1, 1990, or age 50 or more if the
13 retirement on annuity occurs on or after January 1, 1998 and
14 the employee is age 50 or over with at least 30 years of
15 service or age 55 or over with at least 25 years of service.
16 Except as provided in subsection (k), this widow's annuity
17 shall not, however, exceed the sum of $500 a month if the
18 employee's death occurs before January 23, 1987. The widow's
19 annuity shall not be limited to a maximum dollar amount if
20 the employee's death occurs on or after January 23, 1987,
21 regardless of the date of retirement; provided that, if
22 retirement was before January 23, 1987, the employee or
23 eligible spouse repays the excess spouse refund with interest
24 at the effective rate from the date of refund to the date of
25 repayment.
26 If the date of the employee's retirement on annuity is
27 before July 1, 1990, and if such widow of such described
28 employee shall not have attained such age of 60 or more years
29 on such date of her husband's retirement on annuity, the
30 amount provided in the immediately preceding paragraph for a
31 widow 60 or more years of age on the date of her husband's
32 retirement on annuity, shall, in the case of such then
33 younger widow, be reduced by 0.25% for each month that her
34 then attained age was less than 60 years if the employee was
35 born before January 1, 1936 or withdraws from service on or
-46- LRB9011159EGfgccr6
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; except that if the
11 employee retires on annuity on or after January 1, 1998 at
12 age 50 or over with at least 30 years of service or at age 55
13 or over with at least 25 years of service, there shall be no
14 reduction due to the widow's age if she has attained age 50
15 on or before the employee's date of death, and if the widow
16 has not attained age 50 on or before the employee's date of
17 death the amount otherwise provided in this subsection (b)
18 shall be reduced by 0.25% for each month that her then
19 attained age is less than 50 years.
20 (c) The foregoing provisions relating to minimum
21 annuities for widows shall not apply to the widow of any
22 former municipal employee receiving an annuity from the fund
23 on August 9, 1965 or on the effective date of this amendatory
24 provision, who re-enters service as a municipal employee,
25 unless such employee renders at least 3 years of additional
26 service after the date of re-entry.
27 (d) In computing the amount of annuity which the husband
28 specified in the foregoing paragraphs (a) and (b) of this
29 Section would have been entitled to receive, or received,
30 such amount shall be the annuity to which such husband would
31 have been, or was entitled, before reduction in the amount of
32 his annuity for the purposes of the voluntary optional
33 reversionary annuity provided for in Sec. 8-139 of this
34 Article, if such option was elected.
35 (e) (Blank).
-47- LRB9011159EGfgccr6
1 (f) (Blank).
2 (g) The amendatory provisions of this amendatory Act of
3 1985 relating to annuity discount because of age for widows
4 of employees born before January 1, 1936, shall apply only to
5 qualifying widows of employees withdrawing or dying in
6 service on or after July 18, 1985.
7 (h) Beginning on January 1, 1999 the effective date of
8 this amendatory Act of 1997, the minimum amount of widow's
9 annuity shall be $800 $500 per month for life for the
10 following classes of widows, without regard to the fact that
11 the death of the employee occurred prior to the effective
12 date of this amendatory Act of 1998 1997:
13 (1) any widow annuitant alive and receiving a life
14 annuity on the effective date of this amendatory Act of
15 1998 1997, except a reciprocal annuity;
16 (2) any widow annuitant alive and receiving a term
17 annuity on the effective date of this amendatory Act of
18 1998 1997, except a reciprocal annuity;
19 (3) any widow annuitant alive and receiving a
20 reciprocal annuity on the effective date of this
21 amendatory Act of 1998 1997, whose employee spouse's
22 service in this fund was at least 5 years;
23 (4) the widow of an employee with at least 10 years
24 of service in this fund who dies after retirement, if the
25 retirement occurred prior to the effective date of this
26 amendatory Act of 1998 1997;
27 (5) the widow of an employee with at least 10 years
28 of service in this fund who dies after retirement, if
29 withdrawal occurs on or after the effective date of this
30 amendatory Act of 1998 1997;
31 (6) the widow of an employee who dies in service
32 with at least 5 years of service in this fund, if the
33 death in service occurs on or after the effective date of
34 this amendatory Act of 1998 1997.
35 The increases granted under items (1), (2), (3) and (4)
-48- LRB9011159EGfgccr6
1 of this subsection (h) shall not be limited by any other
2 Section of this Act.
3 (i) The widow of an employee who retired or died in
4 service on or after January 1, 1985 and before July 1, 1990,
5 at age 55 or older, and with at least 35 years of service
6 credit, shall be entitled to have her widow's annuity
7 increased, effective January 1, 1991, to an amount equal to
8 50% of the retirement annuity that the deceased employee
9 received on the date of retirement, or would have been
10 eligible to receive if he had retired on the day preceding
11 the date of his death in service, provided that if the widow
12 had not attained age 60 by the date of the employee's
13 retirement or death in service, the amount of the annuity
14 shall be reduced by 0.25% for each month that her then
15 attained age was less than age 60 if the employee's
16 retirement or death in service occurred on or after January
17 1, 1988, or by 0.5% for each month that her attained age is
18 less than age 60 if the employee's retirement or death in
19 service occurred prior to January 1, 1988. However, in cases
20 where a refund of excess contributions for widow's annuity
21 has been paid by the Fund, the increase in benefit provided
22 by this subsection (i) shall be contingent upon repayment of
23 the refund to the Fund with interest at the effective rate
24 from the date of refund to the date of payment.
25 (j) If a deceased employee is receiving a retirement
26 annuity at the time of death and that death occurs on or
27 after June 27, the effective date of this amendatory Act of
28 1997, the widow may elect to receive, in lieu of any other
29 annuity provided under this Article, 50% of the deceased
30 employee's retirement annuity at the time of death reduced by
31 0.25% for each month that the widow's age on the date of
32 death is less than 55; except that if the employee dies on or
33 after January 1, 1998 and withdrew from service on or after
34 June 27, 1997 at age 50 or over with at least 30 years of
35 service or at age 55 or over with at least 25 years of
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1 service, there shall be no reduction due to the widow's age
2 if she has attained age 50 on or before the employee's date
3 of death, and if the widow has not attained age 50 on or
4 before the employee's date of death the amount otherwise
5 provided in this subsection (j) shall be reduced by 0.25% for
6 each month that her age on the date of death is less than 50
7 years. However, in cases where a refund of excess
8 contributions for widow's annuity has been paid by the Fund,
9 the benefit provided by this subsection (j) is contingent
10 upon repayment of the refund to the Fund with interest at the
11 effective rate from the date of refund to the date of
12 payment.
13 (k) For widows of employees who died before January 23,
14 1987 after retirement on annuity or in service, the maximum
15 dollar amount limitation on widow's annuity shall cease to
16 apply, beginning with the first annuity payment after the
17 effective date of this amendatory Act of 1997; except that if
18 a refund of excess contributions for widow's annuity has been
19 paid by the Fund, the increase resulting from this subsection
20 (k) shall not begin before the refund has been repaid to the
21 Fund, together with interest at the effective rate from the
22 date of the refund to the date of repayment.
23 (Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
24 (40 ILCS 5/8-158) (from Ch. 108 1/2, par. 8-158)
25 Sec. 8-158. Child's annuity. A child's annuity is
26 payable monthly after the death of an employee parent to the
27 child until the child's attainment of age 18, under the
28 following conditions, if the child was born before the
29 employee attained age 65, and before he withdrew from
30 service:
31 (a) upon death resulting from injury incurred in
32 the performance of an act of duty;
33 (b) upon death in service from any cause other than
34 injury incurred in the performance of an act of duty, if
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1 the employee has at least 4 years of service after the
2 date of his original entry into service, and at least 2
3 years after the date of his latest re-entry;
4 (c) upon death of an employee who withdraws from
5 service after age 55 (or after age 50 with at least 30
6 years of service if withdrawal is on or after June 27,
7 1997) and who has entered upon or is eligible for
8 annuity.
9 Payment shall be made as provided in Section 8-125.
10 (Source: P.A. 90-31, eff. 6-27-97.)
11 (40 ILCS 5/8-173) (from Ch. 108 1/2, par. 8-173)
12 Sec. 8-173. Financing; tax levy.
13 (a) Except as provided in subsection (f) of this
14 Section, the city council of the city shall levy a tax
15 annually upon all taxable property in the city at a rate that
16 will produce a sum which, when added to the amounts deducted
17 from the salaries of the employees or otherwise contributed
18 by them and the amounts deposited under subsection (f), will
19 be sufficient for the requirements of this Article, but which
20 when extended will produce an amount not to exceed the
21 greater of the following: (a) the sum obtained by the levy of
22 a tax of .1093% of the value, as equalized or assessed by the
23 Department of Revenue, of all taxable property within such
24 city, or (b) the sum of $12,000,000. However any city in
25 which a Fund has been established and in operation under this
26 Article for more than 3 years prior to 1970, that city shall
27 levy for the year 1970 a tax at a rate on the dollar of
28 assessed valuation of all taxable property that will produce,
29 when extended, an amount not to exceed 1.2 times the total
30 amount of contributions made by employees to the Fund for
31 annuity purposes in the calendar year 1968, and, for the year
32 1971 and 1972 such levy that will produce, when extended, an
33 amount not to exceed 1.3 times the total amount of
34 contributions made by of employees to the Fund for annuity
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1 purposes in the calendar years 1969 and 1970, respectively;
2 and for the year 1973 an amount not to exceed 1.365 times
3 such total amount of contributions made by employees for
4 annuity purposes in the calendar year 1971; and for the year
5 1974 an amount not to exceed 1.430 times such total amount of
6 contributions made by employees for annuity purposes in the
7 calendar year 1972; and for the year 1975 an amount not to
8 exceed 1.495 times such total amount of contributions made by
9 employees for annuity purposes in the calendar year 1973; and
10 for the year 1976 an amount not to exceed 1.560 times such
11 total amount of contributions made by employees for annuity
12 purposes in the calendar year 1974; and for the year 1977 an
13 amount not to exceed 1.625 times such total amount of
14 contributions made by employees for annuity purposes in the
15 calendar year 1975; and for the year 1978 and each year
16 thereafter, such levy as that will produce, when extended, an
17 amount not to exceed 1.690 times the total amount of
18 contributions made by or on behalf of employees to the Fund
19 for annuity purposes in the calendar year 2 years prior to
20 the year for which the annual applicable tax is levied,
21 multiplied by 1.690 for the years 1978 through 1998 and by
22 1.250 for the year 1999 and for each year thereafter.
23 The tax shall be levied and collected in like manner with
24 the general taxes of the city, and shall be exclusive of and
25 in addition to the amount of tax the city is now or may
26 hereafter be authorized to levy for general purposes under
27 any laws which may limit the amount of tax which the city may
28 levy for general purposes. The county clerk of the county in
29 which the city is located, in reducing tax levies under the
30 provisions of any Act concerning the levy and extension of
31 taxes, shall not consider the tax herein provided for as a
32 part of the general tax levy for city purposes, and shall not
33 include the same within any limitation of the percent of the
34 assessed valuation upon which taxes are required to be
35 extended for such city.
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1 Revenues derived from such tax shall be paid to the city
2 treasurer of the city as collected and held by him for the
3 benefit of the fund.
4 If the payments on account of taxes are insufficient
5 during any year to meet the requirements of this Article, the
6 city may issue tax anticipation warrants against the current
7 tax levy.
8 (b) On or before January 10, annually, the board shall
9 notify the city council of the requirements of this Article
10 that the tax herein provided shall be levied for that current
11 year. The board shall compute the amounts necessary to be
12 credited to the reserves established and maintained as herein
13 provided, and shall make an annual determination of the
14 amount of the required city contributions, and certify the
15 results thereof to the city council.
16 (c) In respect to employees of the city who are
17 transferred to the employment of a park district by virtue of
18 the "Exchange of Functions Act of 1957", the corporate
19 authorities of the park district shall annually levy a tax
20 upon all the taxable property in the park district at such
21 rate per cent of the value of such property, as equalized or
22 assessed by the Department of Revenue, as shall be
23 sufficient, when added to the amounts deducted from their
24 salaries and otherwise contributed by them to provide the
25 benefits to which they and their dependents and beneficiaries
26 are entitled under this Article. The city shall not levy a
27 tax hereunder in respect to such employees.
28 The tax so levied by the park district shall be in
29 addition to and exclusive of all other taxes authorized to be
30 levied by the park district for corporate, annuity fund, or
31 other purposes. The county clerk of the county in which the
32 park district is located, in reducing any tax levied under
33 the provisions of any act concerning the levy and extension
34 of taxes shall not consider such tax as part of the general
35 tax levy for park purposes, and shall not include the same in
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1 any limitation of the per cent of the assessed valuation upon
2 which taxes are required to be extended for the park
3 district. The proceeds of the tax levied by the park
4 district, upon receipt by the district, shall be immediately
5 paid over to the city treasurer of the city for the uses and
6 purposes of the fund.
7 The various sums, to be contributed by the city and park
8 district and allocated for the purposes of this Article, and
9 any interest to be contributed by the city, shall be derived
10 from the revenue from the taxes authorized in this Section
11 said tax or otherwise as expressly provided in this Section.
12 If it is not possible or practicable for the city to make
13 contributions for age and service annuity and widow's annuity
14 at the same time that employee contributions are made for
15 such purposes, such city contributions shall be construed to
16 be due and payable as of the end of the fiscal year for which
17 the tax is levied and shall accrue thereafter with interest
18 at the effective rate until paid.
19 (d) With respect to employees whose wages are funded as
20 participants under the Comprehensive Employment and Training
21 Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
22 93-567, 88 Stat. 1845), hereinafter referred to as CETA,
23 subsequent to October 1, 1978, and in instances where the
24 board has elected to establish a manpower program reserve,
25 the board shall compute the amounts necessary to be credited
26 to the manpower program reserves established and maintained
27 as herein provided, and shall make a periodic determination
28 of the amount of required contributions from the City to the
29 reserve to be reimbursed by the federal government in
30 accordance with rules and regulations established by the
31 Secretary of the United States Department of Labor or his
32 designee, and certify the results thereof to the City
33 Council. Any such amounts shall become a credit to the City
34 and will be used to reduce the amount which the City would
35 otherwise contribute during succeeding years for all
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1 employees.
2 (e) In lieu of establishing a manpower program reserve
3 with respect to employees whose wages are funded as
4 participants under the Comprehensive Employment and Training
5 Act of 1973, as authorized by subsection (d), the board may
6 elect to establish a special municipality contribution rate
7 for all such employees. If this option is elected, the City
8 shall contribute to the Fund from federal funds provided
9 under the Comprehensive Employment and Training Act program
10 at the special rate so established and such contributions
11 shall become a credit to the City and be used to reduce the
12 amount which the City would otherwise contribute during
13 succeeding years for all employees.
14 (f) In lieu of levying all or a portion of the tax
15 required under this Section in any year, the city may deposit
16 with the city treasurer no later than March 1 of that year
17 for the benefit of the fund, to be held in accordance with
18 this Article, an amount that, together with the taxes levied
19 under this Section for that year, is not less than the amount
20 of the city contributions for that year as certified by the
21 board to the city council. The deposit may be derived from
22 any source legally available for that purpose, including, but
23 not limited to, the proceeds of city borrowings. The making
24 of a deposit shall satisfy fully the requirements of this
25 Section for that year to the extent of the amounts so
26 deposited. Amounts deposited under this subsection may be
27 used by the fund for any of the purposes for which the
28 proceeds of the tax levied by the city under this Section may
29 be used, including the payment of any amount that is
30 otherwise required by this Article to be paid from the
31 proceeds of that tax.
32 (Source: P.A. 90-31, eff. 6-27-97; revised 12-18-97.)
33 (40 ILCS 5/8-230.7 new)
34 Sec. 8-230.7. Service rendered to Public Building
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1 Commission.
2 (a) An employee or former employee may contribute to the
3 fund and receive credit for all periods of full-time
4 employment by the Public Building Commission created by the
5 employing city, except for those periods for which the
6 employee retains a right to credit in another public pension
7 fund or retirement system. Such service credit shall be paid
8 for and granted on the same basis and under the same
9 conditions as are applicable in the case of employees who
10 make payment for past service under Section 8-230, provided
11 that the person must also pay the corresponding employer
12 contributions. The contributions shall be based on the
13 salary actually received by the person from the Commission
14 for that employment.
15 (b) A person establishing service credit under
16 subsection (a) may, at the same time, reinstate service
17 credit that was terminated through receipt of a refund by
18 repaying to the Fund the amount of the refund plus interest
19 at the effective rate from the date of the refund to the date
20 of repayment.
21 (c) An eligible person may establish service credit
22 under subsection (a) and reinstate service credit under
23 subsection (b) without returning to active service as an
24 employee under this Article, but the required contributions
25 and repayment must be received by the Fund before the person
26 begins to receive a retirement annuity under this Article.
27 (40 ILCS 5/8-244.1) (from Ch. 108 1/2, par. 8-244.1)
28 Sec. 8-244.1. Payment of annuity other than direct.
29 (a) The board, at the written direction and request of
30 any annuitant, may, solely as an accommodation to such
31 annuitant, pay the annuity due him to a bank, savings and
32 loan association or any other financial institution insured
33 by an agency of the federal government, for deposit to his
34 account, or to a bank or trust company for deposit in a trust
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1 established by him for his benefit with such bank, savings
2 and loan association or trust company, and such annuitant may
3 withdraw such direction at any time. The board may also, in
4 the case of any disability beneficiary or annuitant for whom
5 no estate guardian has been appointed and who is confined in
6 a publicly owned and operated mental institution, pay such
7 disability benefit or annuity due such person to the
8 superintendent or other head of such institution or hospital
9 for deposit to such person's trust fund account maintained
10 for him by such institution or hospital, if by law such trust
11 fund accounts are authorized or recognized.
12 (b) An annuitant formerly employed by the City of
13 Chicago may authorize the withholding of a portion of his or
14 her annuity for payment of dues to the labor organization
15 which formerly represented the annuitant when the annuitant
16 was an active employee; however, no withholding shall be
17 required under this subsection for payment to one labor
18 organization unless a minimum of 25 annuitants authorize such
19 withholding. The Board shall prescribe a form for the
20 authorization of withholding of dues, release of name, social
21 security number and address and shall provide such forms to
22 employees, annuitants and labor organizations upon request.
23 Amounts withheld by the Board under this subsection shall be
24 promptly paid over to the designated organizations,
25 indicating the names, social security numbers and addresses
26 of annuitants on whose behalf dues were withheld.
27 At the request and at the expense of the labor
28 organization that formerly represented the annuitant, the
29 City of Chicago shall coordinate mailings no more than twice
30 in any twelve-month period to such annuitants and the Board
31 shall supply current annuitant addresses to the City of
32 Chicago upon request. These mailings shall be limited to
33 informing the annuitants of their rights under this
34 subsection (b), the form authorizing the withholding of dues
35 from their annuity and information supplied by the labor
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1 organization pertinent to the decision of whether to exercise
2 the rights of this subsection. To meet this obligation, the
3 City of Chicago shall, upon request, create and update
4 records of all retirees for each labor organization as far
5 back in time as records permit, including their names,
6 addresses, phone numbers and social security numbers.
7 (Source: P.A. 83-1362.)
8 (40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
9 Sec. 11-134. Minimum annuities.
10 (a) An employee whose withdrawal occurs after July 1,
11 1957 at age 60 or over, with 20 or more years of service, (as
12 service is defined or computed in Section 11-216), for whom
13 the age and service and prior service annuity combined is
14 less than the amount stated in this Section, shall, from and
15 after the date of withdrawal, in lieu of all annuities
16 otherwise provided in this Article, be entitled to receive an
17 annuity for life of an amount equal to 1 2/3% for each year
18 of service, of the highest average annual salary for any 5
19 consecutive years within the last 10 years of service
20 immediately preceding the date of withdrawal; provided, that
21 in the case of any employee who withdraws on or after July 1,
22 1971, such employee age 60 or over with 20 or more years of
23 service, shall be entitled to instead receive an annuity for
24 life equal to 1.67% for each of the first 10 years of
25 service; 1.90% for each of the next 10 years of service;
26 2.10% for each year of service in excess of 20 but not
27 exceeding 30; and 2.30% for each year of service in excess of
28 30, based on the highest average annual salary for any 4
29 consecutive years within the last 10 years of service
30 immediately preceding the date of withdrawal.
31 An employee who withdraws after July 1, 1957 and before
32 January 1, 1988, with 20 or more years of service, before age
33 60, shall be entitled to an annuity, to begin not earlier
34 than age 55, if under such age at withdrawal, as computed in
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1 the last preceding paragraph, reduced 0.25% if the employee
2 was born before January 1, 1936, or 0.5% if the employee was
3 born on or after January 1, 1936, for each full month or
4 fractional part thereof that his attained age when such
5 annuity is to begin is less than 60.
6 Any employee born before January 1, 1936 who withdraws
7 with 20 or more years of service, and any employee with 20 or
8 more years of service who withdraws on or after January 1,
9 1988, may elect to receive, in lieu of any other employee
10 annuity provided in this Section, an annuity for life equal
11 to 1.80% for each of the first 10 years of service, 2.00% for
12 each of the next 10 years of service, 2.20% for each year of
13 service in excess of 20, but not exceeding 30, and 2.40% for
14 each year of service in excess of 30, of the highest average
15 annual salary for any 4 consecutive years within the last 10
16 years of service immediately preceding the date of
17 withdrawal, to begin not earlier than upon attained age of 55
18 years, if under such age at withdrawal, reduced 0.25% for
19 each full month or fractional part thereof that his attained
20 age when annuity is to begin is less than 60; except that an
21 employee retiring on or after January 1, 1988, at age 55 or
22 over but less than age 60, having at least 35 years of
23 service, or an employee retiring on or after July 1, 1990, at
24 age 55 or over but less than age 60, having at least 30 years
25 of service, or an employee retiring on or after the effective
26 date of this amendatory Act of 1997, at age 55 or over but
27 less than age 60, having at least 25 years of service, shall
28 not be subject to the reduction in retirement annuity because
29 of retirement below age 60.
30 However, in the case of an employee who retired on or
31 after January 1, 1985 but before January 1, 1988, at age 55
32 or older and with at least 35 years of service, and who was
33 subject under this subsection (a) to the reduction in
34 retirement annuity because of retirement below age 60, that
35 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
35 1, 1971, and 75% if withdrawal takes place on or after July
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1 1, 1971. For the purpose of the minimum annuity provided in
2 said paragraphs $1,500 shall be considered the minimum annual
3 salary for any year; and the maximum annual salary to be
4 considered for the computation of such annuity shall be
5 $4,800 for any year prior to 1953, $6,000 for the years 1953
6 to 1956, inclusive, and the actual annual salary, as salary
7 is defined in this Article, for any year thereafter.
8 (b) For an employee receiving disability benefit, his
9 salary for annuity purposes under this Section shall, for all
10 periods of disability benefit subsequent to the year 1956, be
11 the amount on which his disability benefit was based.
12 (c) An employee with 20 or more years of service, whose
13 entire disability benefit credit period expires prior to
14 attainment of age 55 while still disabled for service, shall
15 be entitled upon withdrawal to the larger of (1) the minimum
16 annuity provided above assuming that he is then age 55, and
17 reducing such annuity to its actuarial equivalent at his
18 attained age on such date, or (2) the annuity provided from
19 his age and service and prior service annuity credits.
20 (d) The minimum annuity provisions as aforesaid shall
21 not apply to any former employee receiving an annuity from
22 the fund, and who re-enters service as an employee, unless he
23 renders at least 3 years of additional service after the date
24 of re-entry.
25 (e) An employee in service on July 1, 1947, or who
26 became a contributor after July 1, 1947 and prior to July 1,
27 1950, or who shall become a contributor to the fund after
28 July 1, 1950 prior to attainment of age 70, who withdraws
29 after age 65 with less than 20 years of service, for whom the
30 annuity has been fixed under the foregoing Sections of this
31 Article shall, in lieu of the annuity so fixed, receive an
32 annuity as follows:
33 Such amount as he could have received had the accumulated
34 amounts for annuity been improved with interest at the
35 effective rate to the date of his withdrawal, or to
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1 attainment of age 70, whichever is earlier, and had the city
2 contributed to such earlier date for age and service annuity
3 the amount that would have been contributed had he been under
4 age 65, after the date his annuity was fixed in accordance
5 with this Article, and assuming his annuity were computed
6 from such accumulations as of his age on such earlier date.
7 The annuity so computed shall not exceed the annuity which
8 would be payable under the other provisions of this Section
9 if the employee was credited with 20 years of service and
10 would qualify for annuity thereunder.
11 (f) In lieu of the annuity provided in this or in any
12 other Section of this Article, an employee having attained
13 age 65 with at least 15 years of service who withdraws from
14 service on or after July 1, 1971 and whose annuity computed
15 under other provisions of this Article is less than the
16 amount provided under this paragraph shall be entitled to
17 receive a minimum annual annuity for life equal to 1% of the
18 highest average annual salary for any 4 consecutive years
19 within the last 10 years of service immediately preceding
20 retirement for each year of his service plus the sum of $25
21 for each year of service. Such annual annuity shall not
22 exceed the maximum percentages stated under paragraph (a) of
23 this Section of such highest average annual salary.
24 (f-1) Instead of any other retirement annuity provided
25 in this Article, an employee who has at least 10 years of
26 service and withdraws from service on or after January 1,
27 1999 may elect to receive a retirement annuity for life,
28 beginning no earlier than upon attainment of age 60, equal to
29 2.2% of final average salary for each year of service,
30 subject to a maximum of 75% of final average salary. For the
31 purpose of calculating this annuity, "final average salary"
32 means the highest average annual salary for any 4 consecutive
33 years in the last 10 years of service.
34 (g) Any annuity payable under the preceding subsections
35 of this Section 11-134 shall be paid in equal monthly
-62- LRB9011159EGfgccr6
1 installments.
2 (h) The amendatory provisions of part (a) and (f) of
3 this Section shall be effective July 1, 1971 and apply in the
4 case of every qualifying employee withdrawing on or after
5 July 1, 1971.
6 (i) The amendatory provisions of this amendatory Act of
7 1985 relating to the discount of annuity because of
8 retirement prior to attainment of age 60 and increasing the
9 retirement formula for those born before January 1, 1936,
10 shall apply only to qualifying employees withdrawing on or
11 after August 16, 1985.
12 (j) Beginning on January 1, 1999 the effective date of
13 this amendatory Act of 1997, the minimum amount of employee's
14 annuity shall be $850 $550 per month for life for the
15 following classes of employees, without regard to the fact
16 that withdrawal occurred prior to the effective date of this
17 amendatory Act of 1998 1997:
18 (1) any employee annuitant alive and receiving a
19 life annuity on the effective date of this amendatory Act
20 of 1998 1997, except a reciprocal annuity;
21 (2) any employee annuitant alive and receiving a
22 term annuity on the effective date of this amendatory Act
23 of 1998 1997, except a reciprocal annuity;
24 (3) any employee annuitant alive and receiving a
25 reciprocal annuity on the effective date of this
26 amendatory Act of 1998 1997, whose service in this fund
27 is at least 5 years;
28 (4) any employee annuitant withdrawing after age 60
29 on or after the effective date of this amendatory Act of
30 1998 1997, with at least 10 years of service in this
31 fund.
32 The increases granted under items (1), (2) and (3) of
33 this subsection (j) shall not be limited by any other Section
34 of this Act.
35 (Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
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1 (40 ILCS 5/11-134.1) (from Ch. 108 1/2, par. 11-134.1)
2 Sec. 11-134.1. Automatic increase in annuity.
3 (a) An employee who retired or retires from service
4 after December 31, 1963, and before January 1, 1987, having
5 attained age 60 or more, shall, in the month of January of
6 the year following the year in which the first anniversary of
7 retirement occurs, have the amount of his then fixed and
8 payable monthly annuity increased by 1 1/2%, and such first
9 fixed annuity as granted at retirement increased by a further
10 1 1/2% in January of each year thereafter. Beginning with
11 January of the year 1972, such increases shall be at the rate
12 of 2% in lieu of the aforesaid specified 1 1/2%. Beginning
13 January, 1984, such increases shall be at the rate of 3%.
14 Beginning in January of 1999, such increases shall be at the
15 rate of 3% of the currently payable monthly annuity,
16 including any increases previously granted under this
17 Article. An Such employee who retires on annuity after
18 December 31, 1963 and before January 1, 1987, but prior to
19 age 60, shall receive such increases beginning with January
20 of the year immediately following the year in which he
21 attains the age of 60 years.
22 An employee who retires from service on or after January
23 1, 1987 shall, upon the first annuity payment date following
24 the first anniversary of the date of retirement, or upon the
25 first annuity payment date following attainment of age 60,
26 whichever occurs later, have his then fixed and payable
27 monthly annuity increased by 3%, and such annuity shall be
28 increased by an additional 3% of the original fixed annuity
29 on the same date each year thereafter. Beginning in January
30 of 1999, such increases shall be at the rate of 3% of the
31 currently payable monthly annuity, including any increases
32 previously granted under this Article.
33 (b) The foregoing provision is not applicable to an
34 employee retiring and receiving a term annuity, as defined in
35 this Article, nor to any otherwise qualified employee who
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1 retires before he shall have made employee contributions (at
2 the 1/2 of 1% rate as hereinafter provided) for the purposes
3 of this additional annuity for not less than the equivalent
4 of one full year. Such employee, however, shall make
5 arrangement to pay to the fund a balance of such 1/2 of 1%
6 contributions, based on his final salary, as will bring such
7 1/2 of 1% contributions, computed without interest, to the
8 equivalent of or completion of one year's contributions.
9 Beginning with the month of January, 1964, each employee
10 shall contribute by means of salary deductions 1/2 of 1% of
11 each salary payment, concurrently with and in addition to the
12 employee contributions otherwise made for annuity purposes.
13 Each such additional employee contribution shall be
14 credited to an account in the prior service annuity reserve,
15 to be used, together with city contributions, to defray the
16 cost of the specified annuity increments. Any balance as of
17 the beginning of each calendar year existing in such account
18 shall be credited with interest at the rate of 3% per annum.
19 Such employee contributions shall not be subject to
20 refund, except to an employee who resigns or is discharged
21 and applies for refund under this Article, and also in cases
22 where a term annuity becomes payable.
23 In such cases the employee contributions shall be
24 refunded him, without interest, and charged to the
25 aforementioned account in the prior service annuity reserve.
26 (Source: P.A. 84-1472.)
27 (40 ILCS 5/11-134.2) (from Ch. 108 1/2, par. 11-134.2)
28 Sec. 11-134.2. Reversionary annuity.
29 (a) An employee, prior to retirement on annuity, may
30 elect to take a lesser amount of annuity and provide, with
31 the actuarial value of the amount by which his annuity is
32 reduced, a reversionary annuity for a wife, husband, parent,
33 child, brother or sister. The option shall be exercised by
34 filing a written designation with the board prior to
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1 retirement, and may be revoked by the employee at any time
2 before retirement. The death of the employee prior to his
3 retirement shall automatically void the option.
4 (b) The death of the designated reversionary annuitant
5 prior to the employee's retirement shall automatically void
6 the option. If the reversionary annuitant dies after the
7 employee's retirement, and before the death of the employee
8 annuitant, the reduced annuity being paid to the retired
9 employee annuitant shall be increased to the amount of
10 annuity before reduction for the reversionary annuity and no
11 reversionary annuity shall be payable.
12 The option is subject to the further condition that no
13 reversionary annuity shall be paid to a parent, child,
14 brother, or sister if the employee dies before the expiration
15 of 365 730 days from the date his written designation was
16 filed with the board, even though he has retired and is
17 receiving a reduced annuity.
18 (c) The employee exercising this option shall not reduce
19 his retirement annuity by more than $400 $200 per month, or
20 elect to provide a reversionary annuity of less than $50 per
21 month. No option shall be permitted if the reversionary
22 annuity for a widow, when added to the widow's annuity
23 payable under this Article, exceeds 100% 80% of the reduced
24 annuity payable to the employee.
25 (d) A reversionary annuity shall begin on the day
26 following the death of the annuitant and shall be paid as
27 provided in Section 11-124.
28 (e) The increases in annuity provided in Section
29 11-134.1 of this Article shall, as to an employee so electing
30 a reduced annuity, relate to the amount of the original
31 annuity, and such amount shall constitute the annuity on
32 which such increases shall be based.
33 (f) For annuities elected after June 30, 1983, the
34 amount of the monthly reversionary annuity shall be
35 determined by multiplying the amount of the monthly reduction
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1 in the employee's annuity by the factor in the following
2 table based on the age of the employee and the difference in
3 the age of the employee and the age of the reversionary
4 annuitant at the starting date of the employee's annuity:
5 Employee's Age
6 Reversionary
7 Annuitant's Age 55-57 58-60 61-63 64-66 67-69 70 &
8 Over
9 30 or more years 2.18 1.84 1.55 1.29 1.08 0.91
10 younger
11 25-29 years younger 2.29 1.94 1.63 1.37 1.15 0.97
12 20-24 years younger 2.44 2.07 1.75 1.48 1.25 1.06
13 15-19 years younger 2.65 2.26 1.92 1.63 1.39 1.19
14 10-14 years younger 2.94 2.53 2.16 1.85 1.59 1.37
15 5-9 years younger 3.35 2.90 2.51 2.16 1.88 1.64
16 0-4 years younger 3.93 3.44 3.00 2.61 2.29 2.02
17 1-5 years older 4.76 4.21 3.71 3.26 2.88 2.56
18 6-10 years older 5.93 5.30 4.71 4.16 3.70 3.29
19 11-15 years older 7.58 6.83 6.11 5.40 4.82 4.32
20 16-20 years older 9.84 8.93 8.02 7.13 6.43 5.87
21 21-25 years older 12.91 11.82 10.73 9.66 8.88 8.35
22 26-30 years older 17.15 15.96 14.80 13.65 12.97 12.82
23 31 or more years 23.34 22.32 21.45 20.62 20.85 23.28
24 older
25 (Source: P.A. 90-31, eff. 6-27-97.)
26 (40 ILCS 5/11-134.3) (from Ch. 108 1/2, par. 11-134.3)
27 Sec. 11-134.3. Automatic increases in annuity for certain
28 heretofore retired participants. A retired employee who (a)
29 is receiving annuity based on a service credit of 20 or more
30 years regardless of age at retirement or based on a service
31 credit of 15 or more years with retirement at age 55 or over,
32 and (b) does not qualify for the automatic increases in
33 annuity provided for in Section 11-134.1 of this Article, and
34 (c) elects to make a contribution to the Fund at a time and
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1 manner prescribed by the Retirement Board, of a sum equal to
2 1% of the amount of final monthly salary times the number of
3 full years of service on which the annuity was based in those
4 cases where the annuity was computed on the money purchase
5 formula, and in those cases in which the annuity was computed
6 under the minimum annuity formula provisions of this Article
7 a sum equal to 1% of the average monthly salary on which the
8 annuity was based times such number of full years of service,
9 shall have his original fixed and payable monthly amount of
10 annuity increased in January of the year following the year
11 in which he attains the age of 65 years, if such age of 65
12 years is attained in the year 1969 or later, by an amount
13 equal to 1 1/2%, and by an equal additional 1 1/2% in January
14 of each year thereafter. Beginning with January of the year
15 1972, such increases shall be at the rate of 2% in lieu of
16 the aforesaid specified 1 1/2%. Beginning January, 1984,
17 such increases shall be at the rate of 3%. Beginning in
18 January of 1999, such increases shall be at the rate of 3% of
19 the currently payable monthly annuity, including any
20 increases previously granted under this Article.
21 In those cases in which the retired employee receiving
22 annuity has attained the age of 66 or more years in the year
23 1969, he shall have such annuity increased in January of the
24 year 1970 by an amount equal to 1 1/2% multiplied by the
25 number equal to the number of months of January elapsing from
26 and including January of the year immediately following the
27 year he attained the age of 65 years if retired at or prior
28 to age 65, or from and including January of the year
29 immediately following the year of retirement if retired at an
30 age greater than 65 years, to and including January of the
31 year 1970, and by an equal additional 1 1/2% in January of
32 each year thereafter. Beginning with January of the year
33 1972, such increases shall be at the rate of 2% in lieu of
34 the aforesaid specified 1 1/2%. Beginning January, 1984,
35 such increases shall be at the rate of 3%. Beginning in
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1 January of 1999, such increases shall be at the rate of 3% of
2 the currently payable monthly annuity, including any
3 increases previously granted under this Article.
4 To defray the annual cost of such increases, the annual
5 interest income of the Fund, accruing from investments held
6 by the Fund, exclusive of gains or losses on sales or
7 exchanges of assets during the year, over and above 4% a
8 year, shall be used to the extent necessary and available to
9 finance the cost of such increases for the following year,
10 and such amount shall be transferred as of the end of each
11 year, beginning with the year 1969, to a Fund account
12 designated as the Supplementary Payment Reserve from the
13 Investment and Interest Reserve set forth in Sec. 11-210. The
14 sums contributed by annuitants as provided for in this
15 Section shall also be placed in the aforesaid Supplementary
16 Payment Reserve and shall be applied for and used for the
17 purposes of such Fund account, together with the aforesaid
18 interest.
19 In the event the monies in the Supplementary Payment
20 Reserve in any year arising from: (1) the available interest
21 income as defined hereinbefore and accruing in the preceding
22 year above 4% a year and (2) the contributions by retired
23 persons, as set forth hereinbefore, are insufficient to make
24 the total payments to all persons estimated to be entitled to
25 the annuity increases specified hereinbefore, then (3) any
26 interest earnings over 4% a year beginning with the year 1969
27 which were not previously used to finance such increases and
28 which were transferred to the Prior Service Annuity Reserve
29 may be used to the extent necessary and available to provide
30 sufficient funds to finance such increases for the current
31 year, and such sums shall be transferred from the Prior
32 Service Annuity Reserve.
33 In the event the total monies available in the
34 Supplementary Payment Reserve from the preceding indicated
35 sources are insufficient to make the total payments to all
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1 persons entitled to such increases for the year, a
2 proportionate amount computed as the ratio of the monies
3 available to the total of the total payments for that year
4 shall be paid to each person for that year.
5 The Fund shall be obligated for the payment of the
6 increases in annuity as provided for in this Section only to
7 the extent that the assets for such purpose, as specified
8 herein, are available.
9 (Source: P.A. 83-802.)
10 (40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
11 Sec. 11-145.1. Minimum annuities for widows. The widow
12 otherwise eligible for widow's annuity under other Sections
13 of this Article 11, of an employee hereinafter described, who
14 retires from service or dies while in the service subsequent
15 to the effective date of this amendatory provision, and for
16 which widow the amount of widow's annuity and widow's prior
17 service annuity combined, fixed or provided for such widow
18 under other provisions of said Article 11 is less than the
19 amount hereinafter provided in this section, shall, from and
20 after the date her otherwise provided annuity would begin, in
21 lieu of such otherwise provided widow's and widow's prior
22 service annuity, be entitled to the following indicated
23 amount of annuity:
24 (a) The widow of any employee who dies while in service
25 on or after the date on which he attains age 60 if the death
26 occurs before July 1, 1990, or on or after the date on which
27 he attains age 55 if the death occurs on or after July 1,
28 1990, with at least 20 years of service, or on or after the
29 date on which he attains age 50 if the death occurs on or
30 after the effective date of this amendatory Act of 1997 with
31 at least 30 years of service, shall be entitled to an annuity
32 equal to one-half of the amount of annuity which her deceased
33 husband would have been entitled to receive had he withdrawn
34 from the service on the day immediately preceding the date of
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1 his death, conditional upon such widow having attained age 60
2 on or before such date if the death occurs before July 1,
3 1990, or age 55 if the death occurs on or after July 1, 1990,
4 or age 50 if the death occurs on or after January 1, 1998 and
5 the employee is age 50 or over with at least 30 years of
6 service or age 55 or over with at least 25 years of service.
7 Except as provided in subsection (j), the widow's annuity
8 shall not, however, exceed the sum of $500 a month if the
9 employee's death in service occurs before January 23, 1987.
10 The widow's annuity shall not be limited to a maximum dollar
11 amount if the employee's death in service occurs on or after
12 January 23, 1987.
13 If the employee dies in service before July 1, 1990, and
14 if such widow of such described employee shall not be 60 or
15 more years of age on such date of death, the amount provided
16 in the immediately preceding paragraph for a widow 60 or more
17 years of age, shall, in the case of such younger widow, be
18 reduced by 0.25% for each month that her then attained age is
19 less than 60 years if the employee was born before January 1,
20 1936, or dies in service on or after January 1, 1988, or 0.5%
21 for each month that her then attained age is less than 60
22 years if the employee was born on or after January 1, 1936
23 and dies in service before January 1, 1988.
24 If the employee dies in service on or after July 1, 1990,
25 and if the widow of the employee has not attained age 55 on
26 or before the employee's date of death, the amount otherwise
27 provided in this subsection (a) shall be reduced by 0.25% for
28 each month that her then attained age is less than 55 years;
29 except that if the employee dies in service on or after
30 January 1, 1998 at age 50 or over with at least 30 years of
31 service or at age 55 or over with at least 25 years of
32 service, there shall be no reduction due to the widow's age
33 if she has attained age 50 on or before the employee's date
34 of death, and if the widow has not attained age 50 on or
35 before the employee's date of death the amount otherwise
-71- LRB9011159EGfgccr6
1 provided in this subsection (a) shall be reduced by 0.25% for
2 each month that her then attained age is less than 50 years.
3 (b) The widow of any employee who dies subsequent to the
4 date of his retirement on annuity, and who so retired on or
5 after the date on which he attained age 60 if retirement
6 occurs before July 1, 1990, or on or after the date on which
7 he attained age 55 if retirement occurs on or after July 1,
8 1990, with at least 20 years of service, or on or after the
9 date on which he attained age 50 if the retirement occurs on
10 or after the effective date of this amendatory Act of 1997
11 with at least 30 years of service, shall be entitled to an
12 annuity equal to one-half of the amount of annuity which her
13 deceased husband received as of the date of his retirement on
14 annuity, conditional upon such widow having attained age 60
15 on or before the date of her husband's retirement on annuity
16 if retirement occurs before July 1, 1990, or age 55 if
17 retirement occurs on or after July 1, 1990, or age 50 if the
18 retirement on annuity occurs on or after January 1, 1998 and
19 the employee is age 50 or over with at least 30 years of
20 service or age 55 or over with at least 25 years of service.
21 Except as provided in subsection (j), this widow's annuity
22 shall not, however, exceed the sum of $500 a month if the
23 employee's death occurs before January 23, 1987. The widow's
24 annuity shall not be limited to a maximum dollar amount if
25 the employee's death occurs on or after January 23, 1987,
26 regardless of the date of retirement; provided that, if
27 retirement was before January 23, 1987, the employee or
28 eligible spouse repays the excess spouse refund with interest
29 at the effective rate from the date of refund to the date of
30 repayment.
31 If the date of the employee's retirement on annuity is
32 before July 1, 1990, and if such widow of such described
33 employee shall not have attained such age of 60 or more years
34 on such date of her husband's retirement on annuity, the
35 amount provided in the immediately preceding paragraph for a
-72- LRB9011159EGfgccr6
1 widow 60 or more years of age on the date of her husband's
2 retirement on annuity, shall, in the case of such then
3 younger widow, be reduced by 0.25% for each month that her
4 then attained age was less than 60 years if the employee was
5 born before January 1, 1936, or withdraws from service on or
6 after January 1, 1988, or 0.5% for each month that her then
7 attained age was less than 60 years if the employee was born
8 on or after January 1, 1936 and withdraws from service before
9 January 1, 1988.
10 If the date of the employee's retirement on annuity is on
11 or after July 1, 1990, and if the widow of the employee has
12 not attained age 55 by the date of the employee's retirement
13 on annuity, the amount otherwise provided in this subsection
14 (b) shall be reduced by 0.25% for each month that her then
15 attained age is less than 55 years; except that if the
16 employee retires on annuity on or after January 1, 1998 at
17 age 50 or over with at least 30 years of service or at age 55
18 or over with at least 25 years of service, there shall be no
19 reduction due to the widow's age if she has attained age 50
20 on or before the employee's date of death, and if the widow
21 has not attained age 50 on or before the employee's date of
22 death the amount otherwise provided in this subsection (b)
23 shall be reduced by 0.25% for each month that her then
24 attained age is less than 50 years.
25 (c) The foregoing provisions relating to minimum
26 annuities for widows shall not apply to the widow of any
27 former employee receiving an annuity from the fund on August
28 2, 1965 or on the effective date of this amendatory
29 provision, who re-enters service as a former employee, unless
30 such employee renders at least 3 years of additional service
31 after the date of re-entry.
32 (d) (Blank).
33 (e) (Blank).
34 (f) The amendments to this Section by this amendatory
35 Act of 1985, relating to changing the discount because of age
-73- LRB9011159EGfgccr6
1 from 1/2 of 1% to 0.25% per month for widows of employees
2 born before January 1, 1936, shall apply only to qualifying
3 widows whose husbands die while in the service on or after
4 August 16, 1985 or withdraw and enter on annuity on or after
5 August 16, 1985.
6 (g) Beginning on January 1, 1999 the effective date of
7 this amendatory Act of 1997, the minimum amount of widow's
8 annuity shall be $800 $500 per month for life for the
9 following classes of widows, without regard to the fact that
10 the death of the employee occurred prior to the effective
11 date of this amendatory Act of 1998 1997:
12 (1) any widow annuitant alive and receiving a term
13 annuity on the effective date of this amendatory Act of
14 1998 1997, except a reciprocal annuity;
15 (2) any widow annuitant alive and receiving a life
16 annuity on the effective date of this amendatory Act of
17 1998 1997, except a reciprocal annuity;
18 (3) any widow annuitant alive and receiving a
19 reciprocal annuity on the effective date of this
20 amendatory Act of 1998 1997, whose employee spouse's
21 service in this fund was at least 5 years;
22 (4) the widow of an employee with at least 10 years
23 of service in this fund who dies after retirement, if the
24 retirement occurred prior to the effective date of this
25 amendatory Act of 1998 1997;
26 (5) the widow of an employee with at least 10 years
27 of service in this fund who dies after retirement, if
28 withdrawal occurs on or after the effective date of this
29 amendatory Act of 1998 1997;
30 (6) the widow of an employee who dies in service
31 with at least 5 years of service in this fund, if the
32 death in service occurs on or after the effective date of
33 this amendatory Act of 1998 1997.
34 The increases granted under items (1), (2), (3) and (4)
35 of this subsection (g) shall not be limited by any other
-74- LRB9011159EGfgccr6
1 Section of this Act.
2 (h) The widow of an employee who retired or died in
3 service on or after January 1, 1985 and before July 1, 1990,
4 at age 55 or older, and with at least 35 years of service
5 credit, shall be entitled to have her widow's annuity
6 increased, effective January 1, 1991, to an amount equal to
7 50% of the retirement annuity that the deceased employee
8 received on the date of retirement, or would have been
9 eligible to receive if he had retired on the day preceding
10 the date of his death in service, provided that if the widow
11 had not attained age 60 by the date of the employee's
12 retirement or death in service, the amount of the annuity
13 shall be reduced by 0.25% for each month that her then
14 attained age was less than age 60 if the employee's
15 retirement or death in service occurred on or after January
16 1, 1988, or by 0.5% for each month that her attained age is
17 less than age 60 if the employee's retirement or death in
18 service occurred prior to January 1, 1988. However, in cases
19 where a refund of excess contributions for widow's annuity
20 has been paid by the Fund, the increase in benefit provided
21 by this subsection (h) shall be contingent upon repayment of
22 the refund to the Fund with interest at the effective rate
23 from the date of refund to the date of payment.
24 (i) If a deceased employee is receiving a retirement
25 annuity at the time of death and that death occurs on or
26 after June 27, the effective date of this amendatory Act of
27 1997, the widow may elect to receive, in lieu of any other
28 annuity provided under this Article, 50% of the deceased
29 employee's retirement annuity at the time of death reduced by
30 0.25% for each month that the widow's age on the date of
31 death is less than 55; except that if the employee dies on or
32 after January 1, 1998 and withdrew from service on or after
33 June 27, 1997 at age 50 or over with at least 30 years of
34 service or at age 55 or over with at least 25 years of
35 service, there shall be no reduction due to the widow's age
-75- LRB9011159EGfgccr6
1 if she has attained age 50 on or before the employee's date
2 of death, and if the widow has not attained age 50 on or
3 before the employee's date of death the amount otherwise
4 provided in this subsection (i) shall be reduced by 0.25% for
5 each month that her age on the date of death is less than 50
6 years. 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 (j) For widows of employees who died before January 23,
13 1987 after retirement on annuity or in service, the maximum
14 dollar amount limitation on widow's annuity shall cease to
15 apply, beginning with the first annuity payment after the
16 effective date of this amendatory Act of 1997; except that if
17 a refund of excess contributions for widow's annuity has been
18 paid by the Fund, the increase resulting from this subsection
19 (j) shall not begin before the refund has been repaid to the
20 Fund, together with interest at the effective rate from the
21 date of the refund to the date of repayment.
22 (Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
23 (40 ILCS 5/11-153) (from Ch. 108 1/2, par. 11-153)
24 Sec. 11-153. Child's annuity.
25 (a) A "Child's Annuity" shall be payable monthly after
26 the death of an employee parent to an unmarried child until
27 the child's attainment of age 18 or marriage, whichever event
28 shall first occur, under the following conditions, if the
29 child was born or in esse before the employee attained age
30 65, and before he withdrew from service:
31 (1) upon death resulting from injury incurred in
32 the performance of an act of duty;
33 (2) upon death in service from any cause other than
34 injury incurred in the performance of duty, if the
-76- LRB9011159EGfgccr6
1 employee has at least 4 years of service after the date
2 of his original entry into service, and at least 2 years
3 after the date of his latest re-entry;
4 (3) upon death of an employee who withdraws from
5 service after age 55 (or after age 50 with at least 30
6 years of service if withdrawal is on or after June 27,
7 1997) and who has entered upon or is eligible for
8 annuity.
9 Payment shall be made as provided in Section 11-124.
10 (b) After July 24, 1967, an adopted child shall be
11 entitled to the same child's annuity benefits provided for
12 natural children in this Article, if:
13 (1) the child was legally adopted by the employee
14 at least one year prior to the death of the employee; and
15 (2) the child was adopted before the employee
16 attained age 55.
17 (Source: P.A. 90-31, eff. 6-27-97.)
18 (40 ILCS 5/11-169) (from Ch. 108 1/2, par. 11-169)
19 Sec. 11-169. Financing; tax levy.
20 (a) Except as provided in subsection (f) of this
21 Section, the city council of the city shall levy a tax
22 annually upon all taxable property in the city at the rate
23 that will produce a sum which, when added to the amounts
24 deducted from the salaries of the employees or otherwise
25 contributed by them and the amounts deposited under
26 subsection (f), will be sufficient for the requirements of
27 this Article. For the years prior to the year 1950 the tax
28 rate shall be as provided for under "The 1935 Act".
29 Beginning with the year 1950 to and including the year 1969
30 such tax shall be not more than .036% annually of the value,
31 as equalized or assessed by the Department of Revenue, of all
32 taxable property within such city. Beginning with the year
33 1970 and each year thereafter the city shall levy a tax
34 annually at a rate on the dollar of the value, as equalized
-77- LRB9011159EGfgccr6
1 or assessed by the Department of Revenue of all taxable
2 property within such city that will produce, when extended,
3 not to exceed an amount equal to the total amount of
4 contributions by the employees to the fund made in the
5 calendar year 2 years prior to the year for which the annual
6 applicable tax is levied, multiplied by 1.1 for the years
7 1970, 1971 and 1972; 1.145 for the year 1973; 1.19 for the
8 year 1974; 1.235 for the year 1975; 1.280 for the year 1976;
9 1.325 for the year 1977; and 1.370 for the years 1978 through
10 1998; and 1.000 for the year 1999 1978 and for each year
11 thereafter.
12 The tax shall be levied and collected in like manner with
13 the general taxes of the city, and shall be exclusive of and
14 in addition to the amount of tax the city is now or may
15 hereafter be authorized to levy for general purposes under
16 any laws which may limit the amount of tax which the city may
17 levy for general purposes. The county clerk of the county in
18 which the city is located, in reducing tax levies under the
19 provisions of any Act concerning the levy and extension of
20 taxes, shall not consider the tax herein provided for as a
21 part of the general tax levy for city purposes, and shall not
22 include the same within any limitation of the per cent of the
23 assessed valuation upon which taxes are required to be
24 extended for such city.
25 Revenues derived from such tax shall be paid to the city
26 treasurer of the city as collected and held by him for the
27 benefit of the fund.
28 If the payments on account of taxes are insufficient
29 during any year to meet the requirements of this Article, the
30 city may issue tax anticipation warrants against the current
31 tax levy.
32 (b) On or before January 10, annually, the board shall
33 notify the city council of the requirement of this Article
34 that the tax herein provided shall be levied for that current
35 year. The board shall compute the amounts necessary for the
-78- LRB9011159EGfgccr6
1 purposes of this fund to be credited to the reserves
2 established and maintained as herein provided, and shall make
3 an annual determination of the amount of the required city
4 contributions; and certify the results thereof to the city
5 council.
6 (c) In respect to employees of the city who are
7 transferred to the employment of a park district by virtue of
8 "Exchange of Functions Act of 1957" the corporate authorities
9 of the park district shall annually levy a tax upon all the
10 taxable property in the park district at such rate per cent
11 of the value of such property, as equalized or assessed by
12 the Department of Revenue, as shall be sufficient, when added
13 to the amounts deducted from their salaries and otherwise
14 contributed by them, to provide the benefits to which they
15 and their dependents and beneficiaries are entitled under
16 this Article. The city shall not levy a tax hereunder in
17 respect to such employees.
18 The tax so levied by the park district shall be in
19 addition to and exclusive of all other taxes authorized to be
20 levied by the park district for corporate, annuity fund, or
21 other purposes. The county clerk of the county in which the
22 park district is located, in reducing any tax levied under
23 the provisions of any Act concerning the levy and extension
24 of taxes shall not consider such tax as part of the general
25 tax levy for park purposes, and shall not include the same in
26 any limitation of the per cent of the assessed valuation upon
27 which taxes are required to be extended for the park
28 district. The proceeds of the tax levied by the park
29 district, upon receipt by the district, shall be immediately
30 paid over to the city treasurer of the city for the uses and
31 purposes of the fund.
32 The various sums to be contributed by the city and
33 allocated for the purposes of this Article, and any interest
34 to be contributed by the city, shall be taken from the
35 revenue derived from the taxes authorized in this Section,
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1 tax and no money of such city derived from any source other
2 than the levy and collection of those taxes the tax or the
3 sale of tax anticipation warrants in accordance with the
4 provisions of this Article shall be used to provide revenue
5 for this Article, except as expressly provided in this
6 Section.
7 If it is not possible for the city to make contributions
8 for age and service annuity and widow's annuity concurrently
9 with the employee's contributions made for such purposes,
10 such city shall make such contributions as soon as possible
11 and practicable thereafter with interest thereon at the
12 effective rate to the time they shall be made.
13 (d) With respect to employees whose wages are funded as
14 participants under the Comprehensive Employment and Training
15 Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
16 93-567, 88 Stat. 1845), hereinafter referred to as CETA,
17 subsequent to October 1, 1978, and in instances where the
18 board has elected to establish a manpower program reserve,
19 the board shall compute the amounts necessary to be credited
20 to the manpower program reserves established and maintained
21 as herein provided, and shall make a periodic determination
22 of the amount of required contributions from the City to the
23 reserve to be reimbursed by the federal government in
24 accordance with rules and regulations established by the
25 Secretary of the United States Department of Labor or his
26 designee, and certify the results thereof to the City
27 Council. Any such amounts shall become a credit to the City
28 and will be used to reduce the amount which the City would
29 otherwise contribute during succeeding years for all
30 employees.
31 (e) In lieu of establishing a manpower program reserve
32 with respect to employees whose wages are funded as
33 participants under the Comprehensive Employment and Training
34 Act of 1973, as authorized by subsection (d), the board may
35 elect to establish a special municipality contribution rate
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1 for all such employees. If this option is elected, the City
2 shall contribute to the Fund from federal funds provided
3 under the Comprehensive Employment and Training Act program
4 at the special rate so established and such contributions
5 shall become a credit to the City and be used to reduce the
6 amount which the City would otherwise contribute during
7 succeeding years for all employees.
8 (f) In lieu of levying all or a portion of the tax
9 required under this Section in any year, the city may deposit
10 with the city treasurer no later than March 1 of that year
11 for the benefit of the fund, to be held in accordance with
12 this Article, an amount that, together with the taxes levied
13 under this Section for that year, is not less than the amount
14 of the city contributions for that year as certified by the
15 board to the city council. The deposit may be derived from
16 any source legally available for that purpose, including, but
17 not limited to, the proceeds of city borrowings. The making
18 of a deposit shall satisfy fully the requirements of this
19 Section for that year to the extent of the amounts so
20 deposited. Amounts deposited under this subsection may be
21 used by the fund for any of the purposes for which the
22 proceeds of the tax levied by the city under this Section may
23 be used, including the payment of any amount that is
24 otherwise required by this Article to be paid from the
25 proceeds of that tax.
26 (Source: P.A. 90-31, eff. 6-27-97.)
27 (40 ILCS 5/11-181) (from Ch. 108 1/2, par. 11-181)
28 Sec. 11-181. Board created. A board of 8 5 members shall
29 constitute the a board of trustees authorized to carry out
30 the provisions of this Article. The board shall be known as
31 the Retirement Board of the Laborers' and Retirement Board
32 Employees' Annuity and Benefit Fund of the city. The board
33 shall consist of 5 3 persons appointed and 2 employees and
34 one annuitant elected in the manner hereinafter prescribed.
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1 The 3 appointed members of the board shall be appointed
2 as follows:
3 One member shall be appointed by the comptroller of the
4 such city, who may be himself or anyone chosen from among
5 employees of the city who are versed in the affairs of the
6 comptroller's office; one member shall be appointed by the
7 City Treasurer of the such city, who may be himself or a
8 person chosen from among employees of the city who are versed
9 in the affairs of the City Treasurer's office; one member
10 shall be an employee of the city appointed by the president
11 of the local labor organization representing a majority of
12 the employees participating in the Fund; and 2 members shall
13 be one person appointed by the civil service commission or
14 the Department of Personnel of the such city from among
15 employees of the such city who are versed in the affairs of
16 the civil service commission's office or the Department of
17 Personnel.
18 The member appointed by the comptroller shall hold office
19 for a term ending on December 1st of the first year following
20 the year of appointment. The member appointed by the City
21 Treasurer shall hold office for a term ending on December 1st
22 of the second year following the year of appointment. The
23 member appointed by the civil service commission shall hold
24 office for a term ending on the first day in the month of
25 December of the third year following the year of appointment.
26 The additional member appointed by the civil service
27 commission under this amendatory Act of 1998 shall hold
28 office for an initial term ending on December 1, 2000, and
29 the member appointed by the labor organization president
30 shall hold office for an initial term ending on December 1,
31 2001. Thereafter each appointive member shall be appointed
32 by the officer or body that appointed his predecessor, for a
33 term of 3 years.
34 The 2 employee members of the board shall be elected as
35 follows:
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1 Within 30 days from and after the appointive members have
2 been appointed and have qualified, the appointive members
3 shall arrange for and hold an election.
4 One employee shall be elected for a term ending on
5 December 1st of the first year next following the effective
6 date; one for a term ending on December 1st of the following
7 year.
8 The initial annuitant member shall be appointed by the
9 other members of the board for an initial term ending on
10 December 1, 1999. Thereafter, the annuitant member shall be
11 elected for a 2-year term ending on December 1st of the next
12 odd-numbered year.
13 The members of the retirement board of a laborers' and
14 retirement board employees' annuity and benefit fund holding
15 office in a city at the time this Article becomes effective,
16 including elective and appointive members, shall continue in
17 office until the expiration of their terms and until their
18 respective successors are elected or appointed and have
19 qualified.
20 (Source: P.A. 83-499.)
21 (40 ILCS 5/11-182) (from Ch. 108 1/2, par. 11-182)
22 Sec. 11-182. Board elections; qualification; oath.
23 (a) In each year, the board shall conduct a regular
24 election, under rules adopted by it, at least 30 days prior
25 to the expiration of the term of the employee member whose
26 term next expires, for the election of a successor for a term
27 of 2 years. Each employee member and his or her successor
28 shall be an employee who holds a position by certification
29 and appointment as a result of competitive civil service
30 examination as distinguished from temporary appointment, or
31 so holds a position which is not exempt from the classified
32 service or the personnel ordinance of a city that has adopted
33 a career service ordinance, for a period of not less than 5
34 years prior to date of election. At any such election,
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1 including the initial election and special elections to fill
2 vacancies in such office all persons who are employees at the
3 time such election is held, shall have a right to vote. The
4 ballot shall be of secret character.
5 (b) In each odd-numbered year, the board shall conduct a
6 regular election, under rules adopted by it, at least 30 days
7 prior to the expiration of the term of the annuitant member,
8 for the election of a successor for a term of 2 years. Each
9 annuitant member and his or her successor shall be a former
10 employee receiving a retirement (age and service or prior
11 service) annuity from the Fund. At any such election, all
12 persons who are receiving a retirement (age and service or
13 prior service) annuity from the Fund at the time the election
14 is held have a right to vote. The ballot shall be of secret
15 character.
16 (c) Any appointive or elective member of the board shall
17 hold office until his or her successor is elected and
18 qualified.
19 Any person elected or appointed as a member of the board
20 shall qualify for the office by taking an oath of office to
21 be administered by the city clerk or any person designated by
22 the city clerk him. A copy thereof shall be kept in the
23 office of the city clerk.
24 Any appointment shall be in writing and the written
25 instrument shall be filed with the oath.
26 (Source: P.A. 83-499.)
27 (40 ILCS 5/11-183) (from Ch. 108 1/2, par. 11-183)
28 Sec. 11-183. Board vacancy. A vacancy in the membership
29 of the board shall be filled as follows:
30 If the vacancy is that of an appointive member, the
31 person or body who appointed the member him shall appoint a
32 person to serve for the unexpired term. If the vacancy is
33 that of an elective member, office the remaining members of
34 the board shall appoint a successor, who shall be an employee
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1 or annuitant (as the case may be) who is qualified to hold
2 the position, to from among the employees who hold or who is
3 on a leave of absence from a position to which he was
4 appointed by virtue of certification and appointment as the
5 result of competitive civil service examination, who shall
6 serve during the remainder of the unexpired term.
7 Any appointive or elective member, who leaves the service
8 of the city, other than the annuitant member, shall
9 automatically cease to be a member of the board. If the
10 annuitant member ceases to be an annuitant of the Fund, he or
11 she shall cease to be a member of the board and the position
12 shall be deemed to have become vacant.
13 (Source: Laws 1963, p. 161.)
14 (40 ILCS 5/12-133.1) (from Ch. 108 1/2, par. 12-133.1)
15 Sec. 12-133.1. Annual increase in basic retirement
16 annuity.
17 (a) Any employee upon withdrawal from service on or
18 after July 1, 1965, and retiring on a retirement annuity,
19 shall be entitled to an annual increase in his basic
20 retirement annuity as defined herein while he is in receipt
21 of such annuity.
22 (a) The term "basic retirement annuity" shall mean the
23 retirement annuity of the amount fixed and payable at date of
24 retirement of the employee.
25 (b) The annual increase in annuity shall be 1 1/2% of
26 the basic retirement annuity. The increase shall first occur
27 in the month of January or the month of July, whichever first
28 occurs next following or coincidental with the first
29 anniversary of retirement. Effective January 1, 1972, the
30 annual rate of increase in annuity thereafter shall be 2% of
31 the basic retirement annuity, provided that beginning as of
32 January 1, 1976, the annual rate of increase shall be 3% of
33 the basic retirement annuity.
34 (c) For an employee who retires with less than 30 years
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1 of service, the An increase in the basic retirement annuity
2 shall begin in any case not earlier than in the month of
3 January or the month of July, whichever occurs first,
4 following or coincidental with the employee's attainment of
5 age 60.
6 For an employee who retires with at least 30 years of
7 service, the annual increase under this Section shall begin
8 in the month of January or the month of July, whichever first
9 occurs next following or coincidental with the later of (1)
10 the first anniversary of retirement or (2) July 1, 1998,
11 without regard to the attainment of age 60 and without regard
12 to whether or not the employee was in service on or after the
13 effective date of this amendatory Act of 1998.
14 (d) The increase in the basic retirement annuity shall
15 not be applicable unless the employee otherwise qualified has
16 made contributions to the fund as provided herein for an
17 equivalent period of one full year. If such contributions
18 were not made, the employee may make the required payment to
19 the fund at the time of retirement, in a single sum, without
20 interest.
21 (e) The additional contributions by an employee towards
22 the annual increase in basic retirement annuity shall not be
23 refundable, except to an employee who withdraws and applies
24 for a refund under this Article, or dies while in service,
25 and also in cases where a temporary annuity becomes payable.
26 In such cases his contributions shall be refunded without
27 interest.
28 (Source: P.A. 86-272.)
29 (40 ILCS 5/12-133.5 new)
30 Sec. 12-133.5. Early retirement incentives.
31 (a) To be eligible for the benefits provided in this
32 Section, a person must:
33 (1) have been, on July 1, 1998, an employee (i)
34 contributing to the Fund in active payroll status in a
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1 position of employment under this Article, or (ii)
2 receiving duty or ordinary disability benefits under
3 Section 12-140, 12-142, or 12-143;
4 (2) not have begun to receive a retirement annuity
5 under this Article before August 31, 1998;
6 (3) file with the Board, within 90 days after the
7 effective date of this Section, a written election
8 requesting the benefits provided in this Section;
9 (4) withdraw from service on or after August 31,
10 1998 and no later than December 31, 1998;
11 (5) have attained age 50 on or before the date of
12 withdrawal; and
13 (6) have, by the date of withdrawal, a total of at
14 least 20 years of creditable service with participating
15 systems under the Retirement Systems Reciprocal Act, of
16 which at least 15 years must be under this Fund (not
17 including any creditable service established under this
18 Section).
19 (b) An eligible person may establish up to 5 years of
20 creditable service under this Article, in increments of one
21 month, by making the contributions specified in subsection
22 (c).
23 The creditable service established under this Section may
24 be used for all purposes under this Article and the
25 Retirement Systems Reciprocal Act, except for the computation
26 of the highest average annual salary under Section 12-133 or
27 the determination of salary under this or any other Article
28 of this Code.
29 (c) For each month of creditable service established
30 under this Section, the person must pay to the Fund an
31 employee contribution to be determined by the Fund, equal to
32 4.50% of the person's monthly salary rate in effect on the
33 date of withdrawal. Subject to the requirements of
34 subsection (d), the person may elect to pay the required
35 employee contribution before the retirement annuity begins or
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1 through deduction from the retirement annuity over a period
2 of up to 24 months.
3 If a person who retires under this Section dies before
4 all payments of employee contribution have been made, the
5 remaining payments shall be deducted from any survivor or
6 death benefits payable to the person's surviving spouse or
7 beneficiary.
8 All employee contributions paid under this Section shall
9 be deemed employee contributions for the purposes of
10 determining the tax levy under Section 12-149. Employee
11 contributions made under this Section may be refunded under
12 the same terms and conditions as other employee contributions
13 under this Article.
14 (d) A person who retires under the provisions of this
15 Section shall have his or her retirement annuity calculated
16 under the provisions of Section 12-133, except that the
17 retirement annuity shall not be subject to the reduction for
18 retirement under age 60 that is specified in Section 12-133.
19 (e) Notwithstanding Section 12-146 of this Article, an
20 annuitant who re-enters service under this Article after
21 receiving a retirement annuity based on the additional
22 benefits provided under this Section thereby forfeits the
23 right to continue to receive those additional benefits and
24 upon again retiring shall have his or her retirement annuity
25 recalculated without the additional benefits provided in this
26 Section.
27 (40 ILCS 5/12-166) (from Ch. 108 1/2, par. 12-166)
28 Sec. 12-166. To invest money. To invest and reinvest
29 the moneys of the fund subject to the requirements and
30 restrictions set forth in this Article and in Sections 1-109,
31 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115 in
32 accordance with the provisions set forth in Section 1-113 of
33 this Act.
34 No investments shall be purchased or sold or in any
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1 manner hypothecated except by the action of the board duly
2 entered in the record of its proceedings.
3 The board may hold, purchase, sell, assign, transfer or
4 dispose of any of the securities and investments in which any
5 of the moneys of the fund or the proceeds of those said
6 investments have been invested.
7 The board shall have the authority to enter into any
8 agreements and to execute any documents that it determines to
9 be necessary to complete any investment transaction.
10 All investments shall be clearly held and accounted for
11 to indicate ownership by the fund. The board may direct the
12 registration of securities or the holding of interests in
13 real property in the name of the fund or in the name of a
14 nominee created for the express purpose of registering
15 securities or holding interests in real property by a
16 national or state bank or trust company authorized to conduct
17 a trust business in the State of Illinois. The board may
18 hold title to interests in real property in the name of the
19 fund or in the name of a title holding corporation created
20 for the express purpose of holding title to interests in real
21 property.
22 Investments shall be carried at cost or at a value
23 determined in accordance with generally accepted accounting
24 principles and accounting procedures approved by the board.
25 No bank or savings and loan association shall receive
26 investment funds as permitted by this Section, unless it has
27 complied with the requirements established pursuant to
28 Section 6 of the Public Funds Investment Act. Those
29 requirements shall be applicable only at the time of
30 investment and shall not require the liquidation of any
31 investment at any time.
32 The board of trustees of any fund established under this
33 Article may not transfer its investment authority, nor
34 transfer the assets of the fund to any other person or entity
35 for the purpose of consolidating or merging its assets and
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1 management with any other pension fund or public investment
2 authority, unless the board resolution authorizing such
3 transfer is submitted for approval to the contributors and
4 retirees of the fund at elections held not less than 30 days
5 after the adoption of such resolution by the board, and such
6 resolution is approved by a majority of the votes cast on the
7 question in both the contributors election and the retirees
8 election. The election procedures and qualifications
9 governing the election of trustees shall govern the
10 submission of resolutions for approval under this paragraph,
11 insofar as they may be made applicable.
12 (Source: P.A. 83-970.)
13 (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
14 Sec. 14-104. Service for which contributions permitted.
15 Contributions provided for in this Section shall cover the
16 period of service granted. Except as otherwise provided in
17 this Section, the contributions shall, and be based upon the
18 employee's compensation and contribution rate in effect on
19 the date he last became a member of the System; provided that
20 for all employment prior to January 1, 1969 the contribution
21 rate shall be that in effect for a noncovered employee on the
22 date he last became a member of the System. Except as
23 otherwise provided in this Section, contributions permitted
24 under this Section shall include regular interest from the
25 date an employee last became a member of the System to the
26 date of payment.
27 These contributions must be paid in full before
28 retirement either in a lump sum or in installment payments in
29 accordance with such rules as may be adopted by the board.
30 (a) Any member may make contributions as required in
31 this Section for any period of service, subsequent to the
32 date of establishment, but prior to the date of membership.
33 (b) Any employee who had been previously excluded from
34 membership because of age at entry and subsequently became
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1 eligible may elect to make contributions as required in this
2 Section for the period of service during which he was
3 ineligible.
4 (c) An employee of the Department of Insurance who,
5 after January 1, 1944 but prior to becoming eligible for
6 membership, received salary from funds of insurance companies
7 in the process of rehabilitation, liquidation, conservation
8 or dissolution, may elect to make contributions as required
9 in this Section for such service.
10 (d) Any employee who rendered service in a State office
11 to which he was elected, or rendered service in the elective
12 office of Clerk of the Appellate Court prior to the date he
13 became a member, may make contributions for such service as
14 required in this Section. Any member who served by
15 appointment of the Governor under the Civil Administrative
16 Code of Illinois and did not participate in this System may
17 make contributions as required in this Section for such
18 service.
19 (e) Any person employed by the United States government
20 or any instrumentality or agency thereof from January 1, 1942
21 through November 15, 1946 as the result of a transfer from
22 State service by executive order of the President of the
23 United States shall be entitled to prior service credit
24 covering the period from January 1, 1942 through December 31,
25 1943 as provided for in this Article and to membership
26 service credit for the period from January 1, 1944 through
27 November 15, 1946 by making the contributions required in
28 this Section. A person so employed on January 1, 1944 but
29 whose employment began after January 1, 1942 may qualify for
30 prior service and membership service credit under the same
31 conditions.
32 (f) An employee of the Department of Labor of the State
33 of Illinois who performed services for and under the
34 supervision of that Department prior to January 1, 1944 but
35 who was compensated for those services directly by federal
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1 funds and not by a warrant of the Auditor of Public Accounts
2 paid by the State Treasurer may establish credit for such
3 employment by making the contributions required in this
4 Section. An employee of the Department of Agriculture of the
5 State of Illinois, who performed services for and under the
6 supervision of that Department prior to June 1, 1963, but was
7 compensated for those services directly by federal funds and
8 not paid by a warrant of the Auditor of Public Accounts paid
9 by the State Treasurer, and who did not contribute to any
10 other public employee retirement system for such service, may
11 establish credit for such employment by making the
12 contributions required in this Section.
13 (g) Any employee who executed a waiver of membership
14 within 60 days prior to January 1, 1944 may, at any time
15 while in the service of a department, file with the board a
16 rescission of such waiver. Upon making the contributions
17 required by this Section, the member shall be granted the
18 creditable service that would have been received if the
19 waiver had not been executed.
20 (h) Until May 1, 1990, an employee who was employed on a
21 full-time basis by a regional planning commission for at
22 least 5 continuous years may establish creditable service for
23 such employment by making the contributions required under
24 this Section, provided that any credits earned by the
25 employee in the commission's retirement plan have been
26 terminated.
27 (i) Any person who rendered full time contractual
28 services to the General Assembly as a member of a legislative
29 staff may establish service credit for up to 8 years of such
30 services by making the contributions required under this
31 Section, provided that application therefor is made not later
32 than July 1, 1991.
33 (j) By paying the contributions otherwise required under
34 this Section, plus an amount determined by the Board to be
35 equal to the employer's normal cost of the benefit plus
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1 interest, an employee may establish service credit for a
2 period of up to 2 years spent in active military service for
3 which he does not qualify for credit under Section 14-105,
4 provided that (1) he was not dishonorably discharged from
5 such military service, and (2) the amount of service credit
6 established by a member under this subsection (j), when added
7 to the amount of military service credit granted to the
8 member under subsection (b) of Section 14-105, shall not
9 exceed 5 years.
10 (k) An employee who was employed on a full-time basis by
11 the Illinois State's Attorneys Association Statewide
12 Appellate Assistance Service LEAA-ILEC grant project prior to
13 the time that project became the State's Attorneys Appellate
14 Service Commission, now the Office of the State's Attorneys
15 Appellate Prosecutor, an agency of State government, may
16 establish creditable service for not more than 60 months
17 service for such employment by making contributions required
18 under this Section.
19 (l) By paying the contributions otherwise required under
20 this Section, plus an amount determined by the Board to be
21 equal to the employer's normal cost of the benefit plus
22 interest, a member may establish service credit for periods
23 of less than one year spent on authorized leave of absence
24 from service, provided that (1) the period of leave began on
25 or after January 1, 1982 and (2) any credit established by
26 the member for the period of leave in any other public
27 employee retirement system has been terminated. A member may
28 establish service credit under this subsection for more than
29 one period of authorized leave, and in that case the total
30 period of service credit established by the member under this
31 subsection may exceed one year. In determining the
32 contributions required for establishing service credit under
33 this subsection, the interest shall be calculated from the
34 beginning of the leave of absence to the date of payment.
35 (m) (l) Any person who rendered contractual services to
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1 a member of the General Assembly as a worker in the member's
2 district office may establish creditable service for up to 3
3 years of those contractual services by making the
4 contributions required under this Section. The System shall
5 determine a full-time salary equivalent for the purpose of
6 calculating the required contribution. To establish credit
7 under this subsection, the applicant must apply to the System
8 by March 1, 1998.
9 (n) (l) Any person who rendered contractual services to
10 a member of the General Assembly as a worker providing
11 constituent services to persons in the member's district may
12 establish creditable service for up to 8 years of those
13 contractual services by making the contributions required
14 under this Section. The System shall determine a full-time
15 salary equivalent for the purpose of calculating the required
16 contribution. To establish credit under this subsection, the
17 applicant must apply to the System by March 1, 1998.
18 (o) A member who participated in the Illinois
19 Legislative Staff Internship Program may establish creditable
20 service for up to one year of that participation by making
21 the contribution required under this Section. The System
22 shall determine a full-time salary equivalent for the purpose
23 of calculating the required contribution. Credit may not be
24 established under this subsection for any period for which
25 service credit is established under any other provision of
26 this Code.
27 (Source: P.A. 90-32, eff. 6-27-97; 90-448, eff. 8-16-97;
28 90-511, eff. 8-22-97; revised 9-5-97.)
29 (40 ILCS 5/14-104.10)
30 Sec. 14-104.10. Federal or out-of-state employment. A
31 contributing employee may establish additional service credit
32 for periods of full-time employment by the federal government
33 or a unit of state or local government located outside
34 Illinois for which he or she does not qualify for credit
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1 under any other provision of this Article, provided that (i)
2 the amount of service credit established by a person under
3 this Section shall not exceed 8 years or 40% of his or her
4 membership service under this Article, whichever is less,
5 (ii) the amount of service credit established by a person
6 under this Section for federal employment, when added to the
7 amount of all military service credit granted to the person
8 under this Article, shall not exceed 8 years, and (iii) any
9 credit received for the federal or out-of-state employment in
10 any federal or other public employee pension fund or
11 retirement system has been terminated or relinquished.
12 Credit may not be established under this Section for any
13 period of military service or for any period for which credit
14 has been or may be established under Section 14-110 or any
15 other provision of this Article.
16 In order to establish service credit under this Section,
17 the applicant must submit a written application to the System
18 by June 30, 1999 1998, including documentation of the federal
19 or out-of-state employment satisfactory to the Board, and pay
20 to the System (1) employee contributions at the rates
21 provided in this Article based upon the person's salary on
22 the last day as a participating employee prior to the federal
23 or out-of-state employment, or on the first day as a
24 participating employee after that employment, whichever is
25 greater, plus (2) an amount determined by the Board to be
26 equal to the employer's normal cost of the benefits accrued
27 for that employment, plus (3) regular interest on items (1)
28 and (2) from the date of conclusion of the employment to the
29 date of payment.
30 (Source: P.A. 90-32, eff. 6-27-97.)
31 (40 ILCS 5/14-133.1) (from Ch. 108 1/2, par. 14-133.1)
32 Sec. 14-133.1. Pickup of contributions.
33 (a) Each department shall pick up the employee
34 contributions required by Section 14-133 for all compensation
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1 earned after December 31, 1981, and the contributions so
2 picked up shall be treated as employer contributions in
3 determining tax treatment under the United States Internal
4 Revenue Code; however, each department shall continue to
5 withhold federal and State income taxes based upon these
6 contributions until the Internal Revenue Service or the
7 federal courts rule that pursuant to Section 414(h) of the
8 United States Internal Revenue Code, these contributions
9 shall not be included as gross income of the employee until
10 such time as they are distributed or made available.
11 The department shall pay these employee contributions
12 from the same fund which is used in paying earnings to the
13 employee. The department may pick up these contributions by
14 a reduction in the cash salary of the employee or by an
15 offset against a future salary increase or by a combination
16 of a reduction in salary and offset against a future salary
17 increase. If employee contributions are picked up they shall
18 be treated for all purposes of this Article 14 in the same
19 manner and to the same extent as employee contributions made
20 prior to the date picked up.
21 (b) Subject to the requirements of federal law, an
22 employee of a department may elect to have the department
23 pick up optional contributions that the employee has elected
24 to pay to the System, and the contributions so picked up
25 shall be treated as employer contributions for the purposes
26 of determining federal tax treatment. The department shall
27 pick up the contributions by a reduction in the cash salary
28 of the employee and shall pay the contributions from the same
29 fund that is used to pay earnings to the employee. The
30 election to have optional contributions picked up is
31 irrevocable and the optional contributions may not thereafter
32 be prepaid, by direct payment or otherwise. If the provision
33 authorizing the optional contribution requires payment by a
34 stated date (rather than the date of withdrawal or
35 retirement), that requirement shall be deemed to have been
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1 satisfied if (i) on or before the stated date the employee
2 executes a valid irrevocable election to have the
3 contributions picked up under this subsection, and (ii) the
4 picked-up contributions are in fact paid to the System as
5 provided in the election.
6 (Source: P.A. 90-448, eff. 8-16-97.)
7 (40 ILCS 5/15-103.1 new)
8 Sec.15-103.1. Traditional Benefit Package. "Traditional
9 benefit package": The defined benefit retirement program
10 maintained under the System which includes retirement
11 annuities payable directly from the System as provided in
12 Sections 15-135 through 15-140 (but disregarding Section
13 15-136.4), disability retirement annuities payable under
14 Section 15-153.2, death benefits payable directly from the
15 System as provided in Sections 15-141 through 15-144,
16 survivors insurance benefits payable directly from the System
17 as provided in Sections 15-145 through 15-149, and
18 contribution refunds as provided in Section 15-154. The
19 traditional benefit package also includes disability benefits
20 as provided in Sections 15-150 through 15-153.3.
21 (40 ILCS 5/15-103.2 new)
22 Sec.15-103.2. Portable Benefit Package. "Portable
23 benefit package": The defined benefit retirement program
24 maintained under the System which includes retirement
25 annuities payable directly from the System as provided in
26 Sections 15-135 through 15-139 (specifically including
27 Section 15-136.4), disability retirement annuities payable
28 under Section 15-153.2, death benefits payable directly from
29 the System as provided in Sections 15-141 through 15-144, and
30 contribution refunds as provided in Section 15-154. The
31 portable benefit package also includes disability benefits as
32 provided in Sections 15-150 through 15-153.3. The portable
33 benefit package does not include the survivors insurance
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1 benefits payable directly from the System as provided in
2 Sections 15-145 through 15-149.
3 (40 ILCS 5/15-103.3 new)
4 Sec.15-103.3. Self-Managed Plan. "Self-managed plan":
5 The defined contribution retirement program maintained under
6 the System as described in Section 15-158.2. The
7 self-managed plan also includes disability benefits as
8 provided in Sections 15-150 through 15-153.3 (but
9 disregarding disability retirement annuities under Section
10 15-153.2). The self-managed plan does not include retirement
11 annuities, death benefits, or survivors insurance benefits
12 payable directly from the System as provided in Sections
13 15-135 through 15-149 and Section 15-153.2, or refunds
14 determined under Section 15-154.
15 (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
16 Sec. 15-107. Employee.
17 (a) "Employee" means any member of the educational,
18 administrative, secretarial, clerical, mechanical, labor or
19 other staff of an employer whose employment is permanent and
20 continuous or who is employed in a position in which services
21 are expected to be rendered on a continuous basis for at
22 least 4 months or one academic term, whichever is less, who
23 (A) receives payment for personal services on a warrant
24 issued pursuant to a payroll voucher certified by an employer
25 and drawn by the State Comptroller upon the State Treasurer
26 or by an employer upon trust, federal or other funds, or (B)
27 is on a leave of absence without pay. Employment which is
28 irregular, intermittent or temporary shall not be considered
29 continuous for purposes of this paragraph.
30 However, a person is not an "employee" if he or she:
31 (1) is a student enrolled in and regularly
32 attending classes in a college or university which is an
33 employer, and is employed on a temporary basis at less
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1 than full time;
2 (2) is currently receiving a retirement annuity or
3 a disability retirement annuity under Section 15-153.2
4 from this System;
5 (3) is on a military leave of absence;
6 (4) is eligible to participate in the Federal Civil
7 Service Retirement System and is currently making
8 contributions to that system based upon earnings paid by
9 an employer;
10 (5) is on leave of absence without pay for more
11 than 60 days immediately following termination of
12 disability benefits under this Article;
13 (6) is hired after June 30, 1979 as a public
14 service employment program participant under the Federal
15 Comprehensive Employment and Training Act and receives
16 earnings in whole or in part from funds provided under
17 that Act;
18 (7) is employed on or after July 1, 1991 to perform
19 services that are excluded by subdivision (a)(7)(f) or
20 (a)(19) of Section 210 of the federal Social Security Act
21 from the definition of employment given in that Section
22 (42 U.S.C. 410); or
23 (8) participates in an optional program for
24 part-time workers under Section 15-158.1.
25 (b) Any employer may, by filing a written notice with
26 the board, exclude from the definition of "employee" all
27 persons employed pursuant to a federally funded contract
28 entered into after July 1, 1982 with a federal military
29 department in a program providing training in military
30 courses to federal military personnel on a military site
31 owned by the United States Government, if this exclusion is
32 not prohibited by the federally funded contract or federal
33 laws or rules governing the administration of the contract.
34 (c) Any person appointed by the Governor under the Civil
35 Administrative Code of the State is an employee, if he or she
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1 is a participant in this system on the effective date of the
2 appointment.
3 (d) A participant on lay-off status under civil service
4 rules is considered an employee for not more than 120 days
5 from the date of the lay-off.
6 (e) A participant is considered an employee during (1)
7 the first 60 days of disability leave, (2) the period, not to
8 exceed one year, in which his or her eligibility for
9 disability benefits is being considered by the board or
10 reviewed by the courts, and (3) the period he or she receives
11 disability benefits under the provisions of Section 15-152,
12 workers' compensation or occupational disease benefits, or
13 disability income under an insurance contract financed wholly
14 or partially by the employer.
15 (f) Absences without pay, other than formal leaves of
16 absence, of less than 30 calendar days, are not considered as
17 an interruption of a person's status as an employee. If such
18 absences during any period of 12 months exceed 30 work days,
19 the employee status of the person is considered as
20 interrupted as of the 31st work day.
21 (g) A staff member whose employment contract requires
22 services during an academic term is to be considered an
23 employee during the summer and other vacation periods, unless
24 he or she declines an employment contract for the succeeding
25 academic term or his or her employment status is otherwise
26 terminated, and he or she receives no earnings during these
27 periods.
28 (h) An individual who was a participating employee
29 employed in the fire department of the University of
30 Illinois's Champaign-Urbana campus immediately prior to the
31 elimination of that fire department and who immediately after
32 the elimination of that fire department became employed by
33 the fire department of the City of Urbana or the City of
34 Champaign shall continue to be considered as an employee for
35 purposes of this Article for so long as the individual
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1 remains employed as a firefighter by the City of Urbana or
2 the City of Champaign. The individual shall cease to be
3 considered an employee under this subsection (h) upon the
4 first termination of the individual's employment as a
5 firefighter by the City of Urbana or the City of Champaign.
6 (i) An individual who is employed on a full-time basis
7 as an officer or employee of a statewide teacher organization
8 or an officer of a national teacher organization may
9 participate in the System and shall be deemed an employee,
10 provided that (1) the individual has previously earned
11 creditable service under this Article, (2) the individual
12 files with the System an irrevocable election to become a
13 participant, and (3) the individual does not receive credit
14 for that employment under any other Article of this Code. An
15 employee under this subsection (i) is responsible for paying
16 to the System both (A) employee contributions based on the
17 actual compensation received for service with the teacher
18 organization and (B) employer contributions equal to the
19 normal costs (as defined in Section 15-155) resulting from
20 that service; all or any part of these contributions may be
21 paid on the employee's behalf or picked up for tax purposes
22 (if authorized under federal law) by the teacher
23 organization.
24 A person who is an employee as defined in this subsection
25 (i) may establish service credit for similar employment prior
26 to becoming an employee under this subsection by paying to
27 the System for that employment the contributions specified in
28 this subsection, plus interest at the effective rate from the
29 date of service to the date of payment. However, credit
30 shall not be granted under this subsection for any such prior
31 employment for which the applicant received credit under any
32 other provision of this Code, or during which the applicant
33 was on a leave of absence under Section 15-113.2.
34 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
35 90-576, eff. 3-31-98.)
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1 (40 ILCS 5/15-134.5 new)
2 Sec.15-134.5. Retirement Program Elections.
3 (a) All participating employees are participants under
4 the traditional benefit package prior to January 1, 1998.
5 Effective as of the date that an employer elects, as
6 described in Section 15-158.2, to offer to its employees the
7 portable benefit package and the self-managed plan as
8 alternatives to the traditional benefit package, each of that
9 employer's eligible employees (as defined in subsection (b))
10 shall be given the choice to elect which retirement program
11 he or she wishes to participate in with respect to all
12 periods of covered employment occurring on and after the
13 effective date of the employee's election. The retirement
14 program election made by an eligible employee must be made in
15 writing, in the manner prescribed by the System, and within
16 the time period described in subsection (d). The employee
17 election authorized by this Section is a one-time,
18 irrevocable election. If an employee terminates employment
19 after making the election provided under this subsection (a),
20 then upon his or her subsequent re-employment with an
21 employer the original election shall automatically apply to
22 him or her, provided that the employer is then a
23 participating employer as described in Section 15-158.2.
24 (b) "Eligible employee" means an employee (as defined in
25 Section 15-107) who is either a currently eligible employee
26 or a newly eligible employee. For purposes of this Section,
27 a "currently eligible employee" is an employee who is
28 employed by an employer on the effective date on which the
29 employer offers to its employees the portable benefit package
30 and the self-managed plan as alternatives to the traditional
31 benefit package. A "newly eligible employee" is an employee
32 who first becomes employed by an employer after the effective
33 date on which the employer offers its employees the portable
34 benefit package and the self-managed plan as alternatives to
35 the traditional benefit package.
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1 (c) An eligible employee who at the time he or she is
2 first eligible to make the election described in subsection
3 (a) does not have sufficient age and service to qualify for a
4 retirement annuity under Section 15-135 may elect to
5 participate in the traditional benefit package, the portable
6 benefit package, or the self-managed plan. An eligible
7 employee who has sufficient age and service to qualify for a
8 retirement annuity under Section 15-135 at the time he or she
9 is first eligible to make the election described in
10 subsection (a) may elect to participate in the traditional
11 benefit package or the portable benefit package, but may not
12 elect to participate in the self-managed plan.
13 (d) A currently eligible employee must make this
14 election within one year after the effective date of the
15 employer's adoption of the self-managed plan. A newly
16 eligible employee must make this election within 60 days
17 after becoming an eligible employee. The employer shall not
18 remit contributions to the system on behalf of a newly
19 eligible employee until the earlier of the expiration of the
20 employee's 60-day election period or the date on which the
21 employee submits a properly completed election to the
22 employer or to the system.
23 (e) If an eligible employee elects the portable benefit
24 package, that election shall not become effective until the
25 one-year anniversary of the date on which the election is
26 filed with the system, provided the employee remains
27 continuously employed by the employer throughout the one-year
28 waiting period, and any benefits payable to or on account of
29 the employee before such one-year waiting period has ended
30 shall not be determined under the provisions applicable to
31 the portable benefit package but shall instead be determined
32 in accordance with the traditional benefit package. If an
33 eligible employee who has elected the portable benefit
34 package terminates employment covered by the system before
35 the one-year waiting period has ended, then no benefits shall
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1 be determined under the portable benefit package provisions
2 while he or she is inactive in the system and upon
3 re-employment with an employer covered by the system he or
4 she shall begin a new one-year waiting period before the
5 provisions of the portable benefit package become effective.
6 (f) An eligible employee shall be provided with written
7 information prepared or prescribed by the system which
8 describes the employee's retirement program choices. The
9 eligible employee shall be offered an opportunity to receive
10 counseling from the system prior to making his or her
11 election. This counseling may consist of videotaped
12 materials, group presentations, individual consultation with
13 an employee or authorized representative of the system in
14 person or by telephone or other electronic means, or any
15 combination of these methods.
16 (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
17 Sec. 15-135. Retirement annuities - Conditions.
18 (a) A participant who retires in one of the following
19 specified years with the specified amount of service is
20 entitled to a retirement annuity at any age under the
21 retirement program applicable to the participant:
22 35 years if retirement is in 1997 or before;
23 34 years if retirement is in 1998;
24 33 years if retirement is in 1999;
25 32 years if retirement is in 2000;
26 31 years if retirement is in 2001;
27 30 years if retirement is in 2002;
28 35 years if retirement is in 2003 or later.
29 A participant with 8 or more years of service after
30 September 1, 1941, is entitled to a retirement annuity on or
31 after attainment of age 55.
32 A participant with at least 5 but less than 8 years of
33 service after September 1, 1941, is entitled to a retirement
34 annuity on or after attainment of age 62.
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1 A participant who has at least 25 years of service in
2 this system as a police officer or firefighter is entitled to
3 a retirement annuity on or after the attainment of age 50, if
4 Rule 4 of Section 15-136 is applicable to the participant.
5 (b) The annuity payment period shall begin on the date
6 specified by the participant submitting a written
7 application, which date shall not be prior to termination of
8 employment or more than one year before the application is
9 received by the board; however, if the participant is not an
10 employee of an employer participating in this System or in a
11 participating system as defined in Article 20 of this Code on
12 April 1 of the calendar year next following the calendar year
13 in which the participant attains following the attainment of
14 age 70 1/2, the annuity payment period shall begin on that
15 date regardless of whether an application has been filed.
16 (c) An annuity is not payable if the amount provided
17 under Section 15-136 is less than $10 per month.
18 (Source: P.A. 90-65, eff. 7-7-97.)
19 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
20 Sec. 15-136. Retirement annuities - Amount. The
21 provisions of this Section 15-136 apply only to those
22 participants who are participating in the traditional benefit
23 package or the portable benefit package and do not apply to
24 participants who are participating in the self-managed plan.
25 (a) The amount of a participant's the retirement
26 annuity, expressed in the form of a single-life annuity,
27 shall be determined by whichever of the following rules is
28 applicable and provides the largest annuity:
29 Rule 1: The retirement annuity shall be 1.67% of final
30 rate of earnings for each of the first 10 years of service,
31 1.90% for each of the next 10 years of service, 2.10% for
32 each year of service in excess of 20 but not exceeding 30,
33 and 2.30% for each year in excess of 30; or for persons who
34 retire on or after January 1, 1998, 2.2% of the final rate of
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1 earnings for each year of service. However, the annuity for
2 those persons having made an election under Section
3 15-154(a-1) shall be calculated and payable under the
4 portable retirement benefit program pursuant to the
5 provisions of Section 15-136.4.
6 Rule 2: The retirement annuity shall be the sum of the
7 following, determined from amounts credited to the
8 participant in accordance with the actuarial tables and the
9 prescribed rate of interest in effect at the time the
10 retirement annuity begins:
11 (i) The normal annuity which can be provided on an
12 actuarially equivalent basis, by the accumulated normal
13 contributions as of the date the annuity begins; and
14 (ii) an annuity from employer contributions of an
15 amount which can be provided on an actuarially equivalent
16 basis from the accumulated normal contributions made by
17 the participant under Section 15-113.6 and Section
18 15-113.7 plus 1.4 times all other accumulated normal
19 contributions made by the participant, except that the
20 annuity for those persons having made an election under
21 Section 15-154(a-1) shall be calculated and payable under
22 the portable retirement benefit program pursuant to the
23 provisions of Section 15-136.4.
24 With respect to a police officer or firefighter who retires
25 on or after the effective date of this amendatory Act of
26 1998, the accumulated normal contributions taken into account
27 under clauses (i) and (ii) of this Rule 2 shall include the
28 additional normal contributions made by the police officer or
29 firefighter under Section 15-157(a).
30 Rule 3: The retirement annuity of a participant who is
31 employed at least one-half time during the period on which
32 his or her final rate of earnings is based, shall be equal to
33 the participant's years of service not to exceed 30,
34 multiplied by (1) $96 if the participant's final rate of
35 earnings is less than $3,500, (2) $108 if the final rate of
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1 earnings is at least $3,500 but less than $4,500, (3) $120 if
2 the final rate of earnings is at least $4,500 but less than
3 $5,500, (4) $132 if the final rate of earnings is at least
4 $5,500 but less than $6,500, (5) $144 if the final rate of
5 earnings is at least $6,500 but less than $7,500, (6) $156 if
6 the final rate of earnings is at least $7,500 but less than
7 $8,500, (7) $168 if the final rate of earnings is at least
8 $8,500 but less than $9,500, and (8) $180 if the final rate
9 of earnings is $9,500 or more, except that the annuity for
10 those persons having made an election under Section
11 15-154(a-1) shall be calculated and payable under the
12 portable retirement benefit program pursuant to the
13 provisions of Section 15-136.4.
14 Rule 4: A participant who is at least age 50 and has 25
15 or more years of service as a police officer or firefighter,
16 and a participant who is age 55 or over and has at least 20
17 but less than 25 years of service as a police officer or
18 firefighter, shall be entitled to a retirement annuity of
19 2 1/4% of the final rate of earnings for each of the first 10
20 years of service as a police officer or firefighter, 2 1/2%
21 for each of the next 10 years of service as a police officer
22 or firefighter, and 2 3/4% for each year of service as a
23 police officer or firefighter in excess of 20, except that
24 the annuity for those persons having made an election under
25 Section 15-154(a-1) shall be calculated and payable under the
26 portable retirement benefit program pursuant to the
27 provisions of Section 15-136.4. The retirement annuity for
28 all other service shall be computed under Rule 1, payable
29 under the portable retirement benefit program pursuant to the
30 provisions of Section 15-136.4, if applicable.
31 For purposes of this Rule 4, a participant's service as a
32 firefighter shall also include the following:
33 (i) service that is performed while the person is
34 an employee under subsection (h) of Section 15-107; and
35 (ii) in the case of an individual who was a
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1 participating employee employed in the fire department of
2 the University of Illinois's Champaign-Urbana campus
3 immediately prior to the elimination of that fire
4 department and who immediately after the elimination of
5 that fire department transferred to another job with the
6 University of Illinois, service performed as an employee
7 of the University of Illinois in a position other than
8 police officer or firefighter, from the date of that
9 transfer until the employee's next termination of service
10 with the University of Illinois.
11 (b) The retirement annuity provided under Rules 1 and 3
12 above shall be reduced by 1/2 of 1% for each month the
13 participant is under age 60 at the time of retirement.
14 However, this reduction shall not apply in the following
15 cases:
16 (1) For a disabled participant whose disability
17 benefits have been discontinued because he or she has
18 exhausted eligibility for disability benefits under
19 clause (6) of Section 15-152;
20 (2) For a participant who has at least the number
21 of years of service required to retire at any age under
22 subsection (a) of Section 15-135; or
23 (3) For that portion of a retirement annuity which
24 has been provided on account of service of the
25 participant during periods when he or she performed the
26 duties of a police officer or firefighter, if these
27 duties were performed for at least 5 years immediately
28 preceding the date the retirement annuity is to begin.
29 (c) The maximum retirement annuity provided under Rules
30 1, 2, and 4 shall be the lesser of (1) the annual limit of
31 benefits as specified in Section 415 of the Internal Revenue
32 Code of 1986, as such Section may be amended from time to
33 time and as such benefit limits shall be adjusted by the
34 Commissioner of Internal Revenue, and (2) 80% of final rate
35 of earnings.
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1 (d) An annuitant whose status as an employee terminates
2 after August 14, 1969 shall receive automatic increases in
3 his or her retirement annuity as follows:
4 Effective January 1 immediately following the date the
5 retirement annuity begins, the annuitant shall receive an
6 increase in his or her monthly retirement annuity of 0.125%
7 of the monthly retirement annuity provided under Rule 1, Rule
8 2, Rule 3, or Rule 4, contained in this Section, multiplied
9 by the number of full months which elapsed from the date the
10 retirement annuity payments began to January 1, 1972, plus
11 0.1667% of such annuity, multiplied by the number of full
12 months which elapsed from January 1, 1972, or the date the
13 retirement annuity payments began, whichever is later, to
14 January 1, 1978, plus 0.25% of such annuity multiplied by the
15 number of full months which elapsed from January 1, 1978, or
16 the date the retirement annuity payments began, whichever is
17 later, to the effective date of the increase.
18 The annuitant shall receive an increase in his or her
19 monthly retirement annuity on each January 1 thereafter
20 during the annuitant's life of 3% of the monthly annuity
21 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
22 this Section. The change made under this subsection by P.A.
23 81-970 is effective January 1, 1980 and applies to each
24 annuitant whose status as an employee terminates before or
25 after that date.
26 Beginning January 1, 1990, all automatic annual increases
27 payable under this Section shall be calculated as a
28 percentage of the total annuity payable at the time of the
29 increase, including all increases previously granted under
30 this Article.
31 The change made in this subsection by P.A. 85-1008 is
32 effective January 26, 1988, and is applicable without regard
33 to whether status as an employee terminated before that date.
34 (e) If, on January 1, 1987, or the date the retirement
35 annuity payment period begins, whichever is later, the sum of
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1 the retirement annuity provided under Rule 1 or Rule 2 of
2 this Section and the automatic annual increases provided
3 under the preceding subsection or Section 15-136.1, amounts
4 to less than the retirement annuity which would be provided
5 by Rule 3, the retirement annuity shall be increased as of
6 January 1, 1987, or the date the retirement annuity payment
7 period begins, whichever is later, to the amount which would
8 be provided by Rule 3 of this Section. Such increased amount
9 shall be considered as the retirement annuity in determining
10 benefits provided under other Sections of this Article. This
11 paragraph applies without regard to whether status as an
12 employee terminated before the effective date of this
13 amendatory Act of 1987, provided that the annuitant was
14 employed at least one-half time during the period on which
15 the final rate of earnings was based.
16 (f) A participant is entitled to such additional annuity
17 as may be provided on an actuarially equivalent basis, by any
18 accumulated additional contributions to his or her credit.
19 However, the additional contributions made by the participant
20 toward the automatic increases in annuity provided under this
21 Section shall not be taken into account in determining the
22 amount of such additional annuity.
23 (g) If, (1) by law, a function of a governmental unit,
24 as defined by Section 20-107 of this Code, is transferred in
25 whole or in part to an employer, and (2) a participant
26 transfers employment from such governmental unit to such
27 employer within 6 months after the transfer of the function,
28 and (3) the sum of (A) the annuity payable to the participant
29 under Rule 1, 2, or 3 of this Section (B) all proportional
30 annuities payable to the participant by all other retirement
31 systems covered by Article 20, and (C) the initial primary
32 insurance amount to which the participant is entitled under
33 the Social Security Act, is less than the retirement annuity
34 which would have been payable if all of the participant's
35 pension credits validated under Section 20-109 had been
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1 validated under this system, a supplemental annuity equal to
2 the difference in such amounts shall be payable to the
3 participant.
4 (h) On January 1, 1981, an annuitant who was receiving a
5 retirement annuity on or before January 1, 1971 shall have
6 his or her retirement annuity then being paid increased $1
7 per month for each year of creditable service. On January 1,
8 1982, an annuitant whose retirement annuity began on or
9 before January 1, 1977, shall have his or her retirement
10 annuity then being paid increased $1 per month for each year
11 of creditable service.
12 (i) On January 1, 1987, any annuitant whose retirement
13 annuity began on or before January 1, 1977, shall have the
14 monthly retirement annuity increased by an amount equal to 8¢
15 per year of creditable service times the number of years that
16 have elapsed since the annuity began.
17 (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
18 eff. 8-16-97; 90-576, eff. 3-31-98.)
19 (40 ILCS 5/15-136.4)
20 Sec. 15-136.4. Retirement and Survivor Benefits Under
21 Portable Retirement Benefit Package Program.
22 (a) This Section 15-136.4 describes the form of annuity
23 and survivor benefits available to a participant who has
24 elected the portable benefit package and has completed the
25 one-year waiting period required under subsection (e) of
26 Section 15-134.5. For purposes of this Section, the term
27 "eligible spouse" means the husband or wife of a participant
28 to whom the participant is married on the date the
29 participant's retirement annuity begins, provided. however,
30 that if the participant should die prior to the commencement
31 of retirement date the annuity benefits would have begun,
32 then "eligible spouse" means the husband or wife, if any, to
33 whom the participant was married throughout the one-year
34 period preceding the date of his or her death.
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1 (b) This subsection (b) describes the normal form of
2 annuity payable to a participant subject to this Section
3 15-136.4. If the participant is unmarried on the date his or
4 her annuity payments commence, then the annuity payments
5 shall be made in the form of a single-life annuity as
6 described in Section 15-118. If the participant is married
7 on the date his or her annuity payments commence, then the
8 annuity payments shall be paid in the form of a qualified
9 joint and survivor annuity that is the actuarial equivalent
10 of the single-life annuity. Under the "qualified joint and
11 survivor annuity", a reduced amount shall be paid to the
12 participant for his or her lifetime and his or her eligible
13 spouse, if surviving at the participant's death, shall be
14 entitled to receive thereafter a lifetime survivorship
15 annuity in a monthly amount equal to 50% of the reduced
16 monthly amount that was payable to the participant. The last
17 payment of a qualified joint and survivor annuity shall be
18 made as of the first day of the month in which the death of
19 the survivor occurs. If a participant has an eligible spouse
20 on the date his or her annuity payments commence, the annuity
21 shall be paid in the form of a 50% joint and survivor annuity
22 unless the participant elects otherwise in writing and his or
23 her eligible spouse consents to that election. Under a 50%
24 joint and survivor annuity, a reduced amount shall be paid to
25 the participant for his or her lifetime and his or her
26 eligible spouse, if surviving at the participant's death,
27 shall be entitled to receive thereafter a lifetime
28 survivorship annuity in a monthly amount equal to 50% of the
29 reduced monthly amount that was payable to the participant.
30 The reduced amount payable to the participant under the 50%
31 joint and survivor annuity shall be determined so that the
32 aggregate of the annuity payments expected to be made to the
33 participant and his or her eligible spouse is the actuarial
34 equivalent of a single-life annuity. The last payment of a
35 50% joint and survivor annuity shall be made as of the first
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1 day of the month in which the death of the survivor occurs.
2 (c) Instead of the normal form of annuity that would be
3 paid under subsection (b), a participant may elect in writing
4 within the 90-day period prior to the date his or her annuity
5 payments commence to waive the normal form of annuity payment
6 and receive an optional form of annuity as described in
7 subsection (h). If the participant is married and elects an
8 optional form of annuity under subsection (h) other than a
9 joint and survivor annuity with the eligible spouse
10 designated as the contingent annuitant, then such election
11 shall require the consent of his or her eligible spouse in
12 the manner described in subsection (d). At any time during
13 the 90-day period preceding the date the participant's
14 annuity commences, the participant may revoke the optional
15 form elected under this subsection (c) and reinstate coverage
16 under the qualified joint and survivor annuity without the
17 spouse's consent, but an election to revoke the optional form
18 elected and elect a new optional form or designate a
19 different contingent annuitant shall not be effective without
20 the eligible spouse's consent. Instead of the 50% joint and
21 survivor annuity, a participant may elect in writing, within
22 the 90-day period prior to the date his or her annuity
23 payments commence, and only with the consent of his or her
24 eligible spouse, to receive a monthly amount in the form of a
25 single-life annuity. A participant may also elect instead an
26 optional form of benefit under subsection (k). However, if
27 the participant does elect an optional form of benefit under
28 subsection (k) and if the contingent annuitant under the
29 option is not the participant's eligible spouse, then the
30 optional election shall be canceled and the annuity shall be
31 paid in the form of a 50% joint and survivor annuity unless,
32 within the 90-day period preceding the annuity commencement
33 date, the eligible spouse consents to the optional election.
34 (d) A participant may also revoke any election made
35 under this Section at any time during the 90-day period
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1 preceding the date the participant's annuity commences if the
2 purpose of such revocation is to reinstate coverage under the
3 50% joint and survivor annuity.
4 (d) (e) The eligible spouse's consent to any election
5 made pursuant to this Section that requires the eligible
6 spouse's consent shall be in writing and shall acknowledge
7 the effect of the consent. In addition, the eligible
8 spouse's signature on the written consent must be witnessed
9 by a notary public. The eligible spouse's consent need not
10 be obtained if the system is satisfied that there is no
11 eligible spouse, that the eligible spouse cannot be located,
12 or because of any other relevant circumstances. An eligible
13 spouse's consent under this Section is valid only with
14 respect to the specified optional form of payment and, if
15 applicable, alternate contingent annuitant designated by the
16 participant. If the optional form of payment or the
17 alternate contingent annuitant is subsequently changed (other
18 than by a revocation of the optional form and reinstatement
19 of the qualified joint and survivor annuity), a new consent
20 by the eligible spouse is required. The eligible spouse's
21 consent to an election made by a participant pursuant to this
22 Section, once made, may not be revoked by the eligible
23 spouse.
24 (e) (f) Within a reasonable period of time preceding the
25 date a participant's annuity commences, a participant shall
26 be supplied with a written explanation of (1) the terms and
27 conditions of the normal form single-life annuity and
28 qualified 50% joint and survivor annuity, (2) the
29 participant's right, if any, to elect a single-life annuity
30 or an optional form of payment under subsection (h) (k) in
31 lieu of the 50% joint and survivor annuity and subject, in
32 certain cases, to his or her eligible spouse's consent, if
33 applicable, and (3) the participant's right to reinstate
34 coverage under the qualified 50% joint and survivor annuity
35 prior to his or her annuity commencement date by revoking an
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1 election of a single-life annuity or an optional form of
2 benefit under subsection (h) (k).
3 (g) If a participant does not have an eligible spouse
4 on the date his or her annuity payments commence, the
5 participant shall receive a single-life annuity, subject to
6 his or her right, if any, to elect an optional form of
7 benefit. The last payment of the single-life annuity shall be
8 made as of the first day of the month in which the death of
9 the participant occurs.
10 (h) A participant with a least 5 years of service whose
11 employment has not terminated shall be covered by the 50%
12 joint and survivor annuity provisions so that if he or she
13 dies prior to termination of employment, his or her eligible
14 spouse will be entitled to receive an annuity. The annuity
15 payable under this subsection (h) to the eligible spouse
16 shall be actuarially equivalent to the
17 (f) If a married participant with at least 5 years of
18 service dies prior to commencing retirement annuity payments
19 and prior to taking a refund under Section 15-154, his or her
20 eligible spouse is entitled to receive a pre-retirement
21 survivor annuity, if there is not then in effect a waiver of
22 the pre-retirement survivor annuity. The pre-retirement
23 survivor annuity payable under this subsection shall be a
24 monthly annuity payable for the eligible spouse's life,
25 commencing as of the beginning of the month next following
26 the later of the date of the participant's death or the date
27 the participant would have first met the eligibility
28 requirements for retirement, and continuing through the
29 beginning of the month in which the death of the eligible
30 spouse occurs. The monthly amount payable to the spouse
31 under the pre-retirement survivor annuity shall be equal to
32 the monthly amount that would be payable as a survivor
33 annuity under the qualified joint and survivor annuity
34 described in subsection (b) if: (1) in the case of a
35 participant who dies on or after the date on which the
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1 participant has met the eligibility requirements for attained
2 the earliest retirement age, the participant had retired with
3 an immediate qualified joint and survivor annuity on the day
4 before the participant's date of death; or (2) in the case
5 of a participant who dies on or before the earliest date on
6 which the participant would have met the eligibility
7 requirements for attained the earliest retirement age, the
8 participant had separated from service on the date of death,
9 survived to the earliest retirement age based on service
10 prior to his or her death, retired with an immediate
11 qualified joint and survivor annuity at the earliest
12 retirement age, and died on the day after the day on which
13 the participant would have attained the earliest retirement
14 age.
15 (g) A married participant who has not retired may elect
16 at any time to waive the pre-retirement survivor annuity
17 described in subsection (f). Any such election shall require
18 the consent of the participant's eligible spouse in the
19 manner described in subsection (e). A waiver of the
20 pre-retirement survivor annuity shall increase the lump sum
21 death benefit payable under subsection (b) of Section 15-141.
22 Prior to electing any waiver of the pre-retirement survivor
23 annuity, the participant shall be provided with a written
24 explanation of (1) the terms and conditions of the
25 pre-retirement survivor annuity and the death benefits
26 payable from the system both with and without the
27 pre-retirement survivor annuity, (2) the participant's right
28 to elect a waiver of the pre-retirement survivor annuity
29 coverage subject to his or her spouse's consent, and (3) the
30 participant's right to reinstate pre-retirement survivor
31 annuity coverage at any time by revoking a prior waiver of
32 such coverage.
33 (h) By filing a timely election with the system, a
34 participant who will be eligible to receive a retirement
35 annuity under this Section may waive the normal form of
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1 annuity payment described in subsection (b), subject to
2 obtaining the consent of his or her eligible spouse, if
3 applicable, and elect to receive any one of the following
4 optional annuity forms:
5 (1) Joint and Survivor Annuity Options: The
6 participant may elect to receive a reduced annuity
7 payable for his or her life and to have a lifetime
8 survivorship annuity in a monthly amount equal to 50%,
9 75%, or 100% (as elected by the participant) of that
10 reduced monthly amount, to be paid after the
11 participant's death to his or her contingent annuitant,
12 if the contingent annuitant is alive at the time of the
13 participant's death.
14 (2) Single-Life Annuity Option (optional for
15 married participants). The participant may elect to
16 receive a single-life annuity payable for his or her life
17 only.
18 All optional forms shall be in an amount that is the
19 actuarial equivalent of the single-life annuity.
20 For the purposes of this Section, the term "contingent
21 annuitant" means the beneficiary who is designated by a
22 participant at the time the participant elects a joint and
23 survivor annuity to receive the lifetime survivorship annuity
24 in the event the beneficiary survives the participant at the
25 participant's death.
26 The annuity payable to an eligible spouse of a
27 participant shall commence as of the beginning of the month
28 next following the later of the date of death or the date the
29 participant would have met the eligibility requirements for
30 an annuity and shall continue through the beginning of the
31 month in which the death of the eligible spouse occurs.
32 No benefit shall be payable under this subsection (h) for
33 death during employment after the participant has satisfied
34 the requirements for retirement if an option is effective
35 under subsection (k).
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1 (i) A participant who (1) has terminated employment with
2 at least 5 years of service, (2) has not begun receiving
3 annuity payments, (3) has not taken a refund under Section
4 15-154(a-2), and (4) has not elected an effective option
5 under subsection (k), shall be covered by the 50% joint and
6 survivor annuity provisions of subsection (b) until the date
7 his or her annuity payments commence. If the participant
8 dies before the date his or her annuity payments commence,
9 the participant's surviving eligible spouse shall receive an
10 annuity computed in accordance with the applicable provisions
11 of this Section as if the participant's annuity payments had
12 commenced on the first day of the month coincident with or
13 next following the later of his or her date of death or the
14 date the participant would have been eligible for a
15 retirement annuity based on service prior to his or her
16 death. The annuity payable to such an eligible spouse shall
17 commence on the first day of the month coincident with or
18 next following the later of the participant's date of death
19 or the date the participant would have been eligible for a
20 retirement annuity based on service prior to his death and
21 shall continue through the beginning of the month in which
22 the death of the eligible spouse occurs.
23 (j) The provisions of subsection (i) shall not affect
24 the right of a participant to elect a single-life annuity,
25 pursuant to the provisions of subsection (b).
26 (k) By filing a timely election with the system, a
27 participant who will be eligible to receive a retirement
28 annuity under this Section may designate his or her spouse or
29 any person approved by the system as his or her contingent
30 annuitant and elect to receive an annuity payable in
31 accordance with one of the following options, instead of the
32 annuity to which he or she may otherwise become entitled:
33 Option 1: The participant shall receive a reduced
34 annuity payable for life, and payments in the amount of
35 100% of such reduced amount shall, after the
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1 participant's death, be continued to the contingent
2 annuitant during the latter's lifetime.
3 Option 2: The participant shall receive a reduced
4 annuity payable for life, and payments in the amount of
5 75% of such reduced annuity shall, after the
6 participant's death, be continued to the contingent
7 annuitant during the latter's lifetime.
8 Option 3: The participant shall receive a reduced
9 annuity payable for life, and payments in the amount of
10 50% of such reduced annuity shall, after the
11 participant's death, be continued to the contingent
12 annuitant during the latter's lifetime.
13 The aggregate of the annuity payments expected to be paid
14 to a participant and his contingent annuitant under any of
15 the above options shall be the actuarial equivalent of the
16 annuity that the participant is otherwise entitled to receive
17 upon retirement.
18 (i) Under no circumstances may an option be elected,
19 changed, or revoked after the date the participant's
20 retirement annuity commences. An option in favor of a
21 contingent annuitant who is not the participant's eligible
22 spouse may be revoked at any time prior to the date the
23 participant's annuity payments commence. If the contingent
24 annuitant under the elected option is not the participant's
25 eligible spouse, then the election is valid only if the
26 eligible spouse consents to the participant's optional
27 election and to the specific contingent annuitant within the
28 90-day period preceding the date the participant's annuity
29 commences.
30 (j) An election made pursuant to this subsection (h) (k)
31 shall become inoperative if the participant's employment
32 terminates before he or she is eligible for a retirement
33 annuity, or if the participant or the contingent annuitant
34 dies before the date the participant's annuity payments
35 commence, or if the eligible spouse's consent is required and
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1 not given.
2 (k) For purposes of applying the provisions of Section
3 20-123 of this Code, the portable benefit package shall be
4 treated as if it were provided by a participating system that
5 has no survivor's annuity benefit. An effective option under
6 this subsection (k) takes the place of any benefit otherwise
7 payable under this Section, and the form made available by
8 the system for election of the option shall so specify.
9 (1) Within the appropriate applicable period under
10 Section 417 of the Internal Revenue Code of 1986, as amended
11 from time to time, a participant shall be supplied with a
12 written explanation of (1) the terms and conditions of the
13 preretirement survivor annuity under subsections (h) and (i),
14 (2) the participant's right, if any, to elect a single-life
15 annuity or an optional form of payment under subsection (k)
16 in lieu of the preretirement survivor annuity and subject, in
17 certain cases, to his or her eligible spouse's consent, and
18 (3) the participant's right to reinstate coverage under the
19 preretirement survivor annuity by revoking an election of a
20 single-life annuity or an optional form of benefit under
21 subsection (k).
22 (Source: P.A. 90-448, eff. 8-16-97.)
23 (40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
24 Sec. 15-141. Death benefits - Death of participant.
25 (a) The beneficiary of a participant under the
26 traditional benefit package is entitled to a death benefit
27 equal to the sum of (1) the employee's accumulated normal and
28 additional contributions on the date of death, (2) the
29 employee's accumulated survivors insurance contributions on
30 the date of death, if a survivors insurance benefit is not
31 payable, (3) an amount equal to the employee's final rate of
32 earnings, but not more than $5,000 if (i) the beneficiary,
33 under rules of the board, was dependent upon the participant,
34 (ii) the participant was a participating employee immediately
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1 prior to his or her death, and (iii) a survivors insurance
2 benefit is not payable, and (4) $2,500 if (i) the beneficiary
3 was not dependent upon the participant, (ii) the participant
4 was a participating employee immediately prior to his or her
5 death, and (iii) a survivors insurance benefit is not
6 payable.
7 (b) However, If the participant has elected to
8 participate in the portable benefit package and has completed
9 the one-year waiting period required under subsection (e) of
10 retirement benefit program by making the election specified
11 in Section 15-134.5 15-154(a-1), the death benefit shall be
12 calculated as follows. The death benefit shall be equal to
13 the employee's accumulated normal and additional
14 contributions on the date of death plus, or if the employee
15 died with 5 or more years of service for employment as
16 defined in Section 15-113.1, his or her beneficiary shall
17 also be entitled to employer contributions in an amount equal
18 to the sum of the accumulated normal and additional
19 contributions; except that if a pre-retirement survivor
20 annuity benefit to a surviving spouse is payable under
21 Section 15-136.4, the death benefit payable under this
22 paragraph shall be reduced, but to not less than zero, by the
23 actuarial value of the benefit payable to the surviving
24 spouse. The beneficiary of the participant must be his or
25 her spouse unless the spouse has consented to the designation
26 of another beneficiary in the manner described in subsection
27 (d) of Section 15-136.4.
28 (c) If payments are made under any State or Federal
29 Workers' Compensation or Occupational Diseases Law because of
30 the death of an employee, the portion of the death benefit
31 payable from employer contributions shall be reduced by the
32 total amount of the payments.
33 (Source: P.A. 90-448, eff. 8-16-97.)
34 (40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142)
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1 Sec. 15-142. Death benefits - Death of annuitant. Upon
2 the death of an annuitant receiving a retirement annuity or
3 disability retirement annuity, the annuitant's beneficiary
4 shall, if a survivor's insurance benefit is not payable under
5 Section 15-145 and a pre-retirement survivor or an annuity is
6 not payable under Section 15-136.4, be entitled to a death
7 benefit equal to the greater of the following: (1) the
8 excess, if any, of the sum of the accumulated normal,
9 survivors insurance, and additional contributions as of the
10 date of retirement, or the date the disability retirement
11 annuity began, whichever is earlier, over the sum of all
12 annuity payments made prior to the date of death, or (2)
13 $1,000.
14 (Source: P.A. 90-448, eff. 8-16-97.)
15 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
16 Sec. 15-145. Survivors insurance benefits; conditions
17 and amounts.
18 (a) The survivors insurance benefits provided under this
19 Section shall be payable to the eligible survivors of a
20 participant covered under the traditional benefit package
21 upon the death of (1) a participating employee with at least
22 1 1/2 years of service, (2) a participant who terminated
23 employment with at least 10 years of service, and (3) an
24 annuitant in receipt of a retirement annuity or disability
25 retirement annuity under this Article.
26 Service under the State Employees' Retirement System of
27 Illinois, the Teachers' Retirement System of the State of
28 Illinois and the Public School Teachers' Teacher's Pension
29 and Retirement Fund of Chicago shall be considered in
30 determining eligibility for survivors benefits under this
31 Section.
32 If by law, a function of a governmental unit, as defined
33 by Section 20-107, is transferred in whole or in part to an
34 employer, and an employee transfers employment from this
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1 governmental unit to such employer within 6 months after the
2 transfer of this function, the service credits in the
3 governmental unit's retirement system which have been
4 validated under Section 20-109 shall be considered in
5 determining eligibility for survivors benefits under this
6 Section.
7 (b) A surviving spouse of a deceased participant, or of
8 a deceased annuitant who had a survivors insurance
9 beneficiary at the time of retirement, shall receive a
10 survivors annuity of 30% of the final rate of earnings.
11 Payments shall begin on the day following the participant's
12 or annuitant's death or the date the surviving spouse attains
13 age 50, whichever is later, and continue until the death of
14 the surviving spouse. The annuity shall be payable to the
15 surviving spouse prior to attainment of age 50 if the
16 surviving spouse has in his or her care a deceased
17 participant's or annuitant's dependent unmarried child under
18 age 18 (under age 22 if a full-time student) who is eligible
19 for a survivors annuity. Remarriage of a surviving spouse
20 prior to attainment of age 55 shall disqualify him or her for
21 the receipt of a survivors annuity.
22 (c) Each dependent unmarried child under age 18 (under
23 age 22 if a full-time student) of a deceased participant, or
24 of a deceased annuitant who had a survivors insurance
25 beneficiary at the time of his or her retirement, shall
26 receive a survivors annuity equal to the sum of (1) 20% of
27 the final rate of earnings, and (2) 10% of the final rate of
28 earnings divided by the number of children entitled to this
29 benefit. Payments shall begin on the day following the
30 participant's or annuitant's death and continue until the
31 child marries, dies, or attains age 18 (age 22 if a full-time
32 student). If the child is in the care of a surviving spouse
33 who is eligible for survivors insurance benefits, the child's
34 benefit shall be paid to the surviving spouse.
35 Each unmarried child over age 18 of a deceased
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1 participant or of a deceased annuitant who had a survivor's
2 insurance beneficiary at the time of his or her retirement,
3 and who was dependent upon the participant or annuitant by
4 reason of a physical or mental disability which began prior
5 to the date the child attained age 18 (age 22 if a full-time
6 student), shall receive a survivor's annuity equal to the sum
7 of (1) 20% of the final rate of earnings, and (2) 10% of the
8 final rate of earnings divided by the number of children
9 entitled to survivors benefits. Payments shall begin on the
10 day following the participant's or annuitant's death and
11 continue until the child marries, dies, or is no longer
12 disabled. If the child is in the care of a surviving spouse
13 who is eligible for survivors insurance benefits, the child's
14 benefit may be paid to the surviving spouse. For the
15 purposes of this Section, disability means inability to
16 engage in any substantial gainful activity by reason of any
17 medically determinable physical or mental impairment that can
18 be expected to result in death or that has lasted or can be
19 expected to last for a continuous period of at least one
20 year.
21 (d) Each dependent parent of a deceased participant, or
22 of a deceased annuitant who had a survivors insurance
23 beneficiary at the time of his or her retirement, shall
24 receive a survivors annuity equal to the sum of (1) 20% of
25 final rate of earnings, and (2) 10% of final rate of earnings
26 divided by the number of parents who qualify for the benefit.
27 Payments shall begin when the parent reaches age 55 or the
28 day following the participant's or annuitant's death,
29 whichever is later, and continue until the parent dies.
30 Remarriage of a parent prior to attainment of age 55 shall
31 disqualify the parent for the receipt of a survivors annuity.
32 (e) In addition to the survivors annuity provided above,
33 each survivors insurance beneficiary shall, upon death of the
34 participant or annuitant, receive a lump sum payment of
35 $1,000 divided by the number of such beneficiaries.
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1 (f) The changes made in this Section by Public Act
2 81-712 pertaining to survivors annuities in cases of
3 remarriage prior to age 55 shall apply to each survivors
4 insurance beneficiary who remarries after June 30, 1979,
5 regardless of the date that the participant or annuitant
6 terminated his employment or died.
7 (g) On January 1, 1981, any person who was receiving a
8 survivors annuity on or before January 1, 1971 shall have the
9 survivors annuity then being paid increased by 1% for each
10 full year which has elapsed from the date the annuity began.
11 On January 1, 1982, any survivor whose annuity began after
12 January 1, 1971, but before January 1, 1981, shall have the
13 survivor's annuity then being paid increased by 1% for each
14 year which has elapsed from the date the survivor's annuity
15 began. On January 1, 1987, any survivor who began receiving a
16 survivor's annuity on or before January 1, 1977, shall have
17 the monthly survivor's annuity increased by $1 for each full
18 year which has elapsed since the date the survivor's annuity
19 began.
20 (h) If the sum of the lump sum and total monthly
21 survivor benefits payable under this Section upon the death
22 of a participant amounts to less than the sum of the death
23 benefits payable under items (2) and (3) of Section 15-141,
24 the difference shall be paid in a lump sum to the beneficiary
25 of the participant who is living on the date that this
26 additional amount becomes payable.
27 (i) If the sum of the lump sum and total monthly
28 survivor benefits payable under this Section upon the death
29 of an annuitant receiving a retirement annuity or disability
30 retirement annuity amounts to less than the death benefit
31 payable under Section 15-142, the difference shall be paid to
32 the beneficiary of the annuitant who is living on the date
33 that this additional amount becomes payable.
34 (j) Effective on the later of (1) January 1, 1990, or
35 (2) the January 1 on or next after the date on which the
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1 survivor annuity begins, if the deceased member died while
2 receiving a retirement annuity, or in all other cases the
3 January 1 nearest the first anniversary of the date the
4 survivor annuity payments begin, every survivors insurance
5 beneficiary shall receive an increase in his or her monthly
6 survivors annuity of 3%. On each January 1 after the initial
7 increase, the monthly survivors annuity shall be increased by
8 3% of the total survivors annuity provided under this
9 Article, including previous increases provided by this
10 subsection. Such increases shall apply to the survivors
11 insurance beneficiaries of each participant and annuitant,
12 whether or not the employment status of the participant or
13 annuitant terminates before the effective date of this
14 amendatory Act of 1990.
15 (k) If the Internal Revenue Code of 1986, as amended,
16 requires that the survivors benefits be payable at an age
17 earlier than that specified in this Section the benefits
18 shall begin at the earlier age, in which event, the
19 survivor's beneficiary shall be entitled only to that amount
20 which is equal to the actuarial equivalent of the benefits
21 provided by this Section.
22 (l) The changes made to this Section and Section 15-131
23 by this amendatory Act of 1997, relating to benefits for
24 certain unmarried children who are full-time students under
25 age 22, apply without regard to whether the deceased member
26 was in service on or after the effective date of this
27 amendatory Act of 1997. These changes do not authorize the
28 repayment of a refund or a re-election of benefits, and any
29 benefit or increase in benefits resulting from these changes
30 is not payable retroactively for any period before the
31 effective date of this amendatory Act of 1997.
32 (Source: P.A. 90-448, eff. 8-16-97; revised 2-24-98.)
33 (40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
34 Sec. 15-146. Survivors insurance benefits - Minimum
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1 amounts.
2 (a) The minimum total survivors annuity payable on
3 account of the death of a participant shall be 50% of the
4 retirement annuity which would have been provided under Rule
5 1, Rule 2, or Rule 3 of Section 15-136 upon the participant's
6 attainment of the minimum age at which the penalty for early
7 retirement would not be applicable or the date of the
8 participant's death, whichever is later, on the basis of
9 credits earned prior to the time of death.
10 (b) The minimum total survivors annuity payable on
11 account of the death of an annuitant shall be 50% of the
12 retirement annuity which is payable under Section 15-136 at
13 the time of death or 50% of the disability retirement annuity
14 payable under Section 15-153.2. This minimum survivors
15 annuity shall apply to each participant and annuitant who
16 dies after September 16, 1979, whether or not his or her
17 employee status terminates before or after that date.
18 (c) If an annuitant has elected a reversionary annuity,
19 the retirement annuity referred to in this Section is that
20 which would have been payable had such election not been
21 filed.
22 (d) If a participant has made the election provided for
23 under Section 15-154(a-1), the minimum survivor benefit shall
24 be determined under Section 15-136.4.
25 (Source: P.A. 90-448, eff. 8-16-97.)
26 (40 ILCS 5/15-150) (from Ch. 108 1/2, par. 15-150)
27 Sec. 15-150. Disability benefits - Eligibility. A
28 participant may be granted is entitled to a disability
29 benefit if: (1) while a participating employee, he or she
30 becomes physically or mentally incapacitated and unable to
31 perform the duties of his or her assigned position for any
32 period exceeding 60 days; and (2) the employee had completed
33 2 years of service at the time of disability, unless the
34 disability is a result of an accident.
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1 An employee shall be considered disabled only during the
2 period for which the board determines, based upon the
3 evidence listed below, has received (1) a written certificate
4 by at least 2 licensed and practicing physicians appointed by
5 the board stating that the employee is disabled and unable to
6 reasonably perform the duties of his or her assigned position
7 as a result of a physical or mental disability. This
8 determination shall be based upon:
9 (i) a written certificate from one or more licensed
10 and practicing physicians appointed by or acceptable to
11 the board, stating that the employee is disabled and
12 unable to reasonably perform the duties of his or her
13 assigned position;
14 (ii) and (2) a written certificate from by the
15 employer stating that the employee is unable to perform
16 the duties of his or her assigned that position; and
17 (iii) any other medical examinations, hospital
18 records, laboratory results, or other information
19 necessary for determining the employment capacity and
20 condition of the employee.
21 The board shall prescribe rules governing the filing,
22 investigation, control, and supervision of disability claims.
23 Costs incurred by a claimant in connection with completing a
24 claim for disability benefits shall be paid (A) by the
25 claimant, in the case of the one required medical
26 examination, medical certificate, and employer's certificate
27 and any other requirements generally imposed by the board on
28 all disability benefit claimants; and (B) by the System, in
29 the case of any additional medical examination or other
30 additional requirement imposed on a particular claimant that
31 is not imposed generally on all disability benefit claimants.
32 Pregnancy and childbirth shall be considered a
33 disability.
34 (Source: P.A. 84-1028.)
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1 (40 ILCS 5/15-153.2) (from Ch. 108 1/2, par. 15-153.2)
2 Sec. 15-153.2. Disability retirement annuity. A
3 participant whose disability benefits are discontinued under
4 the provisions of clause (6) of Section 15-152 and who is not
5 a participant in the optional retirement plan established
6 under Section 15-158.2, is entitled to a disability
7 retirement annuity of 35% of the basic compensation which was
8 payable to the participant at the time that disability began,
9 provided that at least 2 licensed and practicing physicians
10 appointed by the board determines certify that the
11 participant has a medically determinable physical or mental
12 impairment that prevents which would prevent him or her from
13 engaging in any substantial gainful activity, and which can
14 be expected to result in death or which has lasted or can be
15 expected to last for a continuous period of not less than 12
16 months.
17 The board's determination of whether a participant is
18 disabled shall be based upon:
19 (i) a written certificate from one or more licensed
20 and practicing physicians appointed by or acceptable to
21 the board, stating that the participant is unable to
22 engage in any substantial gainful activity; and
23 (ii) any other medical examinations, hospital
24 records, laboratory results, or other information
25 necessary for determining the employment capacity and
26 condition of the participant.
27 The terms "medically determinable physical or mental
28 impairment" and "substantial gainful activity" shall have the
29 meanings ascribed to them in the federal "Social Security
30 Act", as now or hereafter amended, and the regulations issued
31 thereunder.
32 The disability retirement annuity payment period shall
33 begin immediately following the expiration of the disability
34 benefit payments under clause (6) of Section 15-152 and shall
35 be discontinued when (1) the physical or mental impairment no
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1 longer prevents the participant from engaging in any
2 substantial gainful activity, (2) the participant dies or (3)
3 the participant elects to receive a retirement annuity under
4 Sections 15-135 and 15-136. If a person's disability
5 retirement annuity is discontinued under clause (1), all
6 rights and credits accrued in the system on the date that the
7 disability retirement annuity began shall be restored, and
8 the disability retirement annuity paid shall be considered as
9 disability payments under clause (6) of Section 15-152.
10 (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-511,
11 eff. 8-22-97.)
12 (40 ILCS 5/15-153.3) (from Ch. 108 1/2, par. 15-153.3)
13 Sec. 15-153.3. Automatic increase in disability benefit.
14 Each disability benefit payable under Section 15-150 and
15 calculated under Section 15-153 or 15-153.2 shall be
16 increased by 7% of the original fixed amount of such benefit
17 on January 1, 1991 or January 1 on or next following the
18 fourth anniversary of the granting of the benefit, whichever
19 occurs later. On each January 1 following the 7% increase,
20 the disability benefit shall be increased by 3% of the
21 current amount of the benefit, including prior increases
22 under this Article.
23 (Source: P.A. 86-1488.)
24 (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
25 Sec. 15-154. Refunds.
26 (a) A participant whose status as an employee is
27 terminated, regardless of cause, or who has been on lay off
28 status for more than 120 days, and who is not on leave of
29 absence, is entitled to a refund of contributions upon
30 application; except that not more than one such refund
31 application may be made during any academic year.
32 Except as set forth in subsections (a-1) and (a-2), the
33 refund shall be the sum of the accumulated normal, additional
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1 and survivors insurance contributions, less the amount of
2 interest credited on these contributions each year in excess
3 of 4 1/2% of the amount on which interest was calculated.
4 (a-1) A person who elects, in accordance with the
5 requirements of Section 15-134.5, to participate in the
6 portable benefit package and who becomes a participating
7 employee under that retirement program upon the conclusion of
8 the one-year waiting period applicable to the portable
9 benefit package election shall have his or her refund
10 calculated in accordance with the provisions of subsection
11 (a-2).
12 (a-1) Every person who becomes an eligible employee as
13 described in Section 15-158.2 after the date on which his or
14 her employer first offers an optional retirement program
15 under Section 15-158.2 may elect within 60 days of becoming a
16 participant to have any refund calculated pursuant to
17 subsection (a-2) by forgoing all survivors insurance benefits
18 to which the person's survivors would otherwise be entitled
19 under this Article. This election is irrevocable and may be
20 made by filing an election with the system on such form as
21 the Executive Director shall prescribe.
22 Each person who is an eligible employee as described in
23 Section 15-158.2 on the date on which his or her employer
24 first offers an optional retirement program under Section
25 15-158.2 shall have a one-time option to elect to have his or
26 her refund calculated pursuant to subsection (a-2), by
27 forgoing all survivors insurance benefits to which the
28 person's survivors would otherwise be entitled under this
29 Article. The election will not be effective until one year
30 after the election is filed with the system. This election
31 is irrevocable and may be made by filing an election with the
32 system, on such form as the Executive Director shall
33 prescribe, within one year after the date on which his or her
34 employer first offers an optional retirement program under
35 Section 15-158.2.
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1 A person may make the one-time irrevocable election
2 authorized under this Section or the election authorized
3 under Section 15-158.2(g), but may not make both elections.
4 Any person interested in electing the portable retirement
5 benefit program provided under this Section and Section
6 15-136.4 must be given a consultation with the State
7 Universities Retirement System before making that election.
8 (a-2) The refund payable to a participant described in
9 elected under subsection (a-1) shall be the sum of the
10 participant's accumulated normal and additional
11 contributions, as defined in Sections 15-116 and 15-117. If
12 the participant terminates with 5 or more years of service
13 for employment as defined in Section 15-113.1, he or she
14 shall also be entitled to a distribution refund of employer
15 contributions in an amount equal to the sum of the
16 accumulated normal and additional contributions, as defined
17 in Sections 15-116 and 15-117.
18 (b) Upon acceptance of a refund, the participant
19 forfeits all accrued rights and credits in the System, and if
20 subsequently reemployed, the participant shall be considered
21 a new employee subject to all the qualifying conditions for
22 participation and eligibility for benefits applicable to new
23 employees. If such person again becomes a participating
24 employee and continues as such for 2 years, or is employed by
25 an employer and participates for at least 2 years in the
26 Federal Civil Service Retirement System, all such rights,
27 credits, and previous status as a participant shall be
28 restored upon repayment of the amount of the refund, together
29 with compound interest thereon from the date the refund was
30 received to the date of repayment at the rate of 6% per annum
31 through August 31, 1982, and at the effective rates after
32 that date.
33 (c) If a participant covered under the transitional
34 benefit package has made survivors insurance contributions,
35 but has no survivors insurance beneficiary upon retirement,
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1 he or she shall be entitled to a refund of the accumulated
2 survivors insurance contributions, or to an additional
3 annuity the value of which is equal to the accumulated
4 survivors insurance contributions.
5 (d) A participant, upon application, is entitled to a
6 refund of his or her accumulated additional contributions
7 attributable to the additional contributions described in the
8 last sentence of subsection (c) of Section 15-157 except
9 those covering the cost of the annual increase in the
10 retirement annuity provided under Section 15-136. Upon the
11 acceptance of such a refund of accumulated additional
12 contributions, the participant forfeits all rights and
13 credits which may have accrued because of such contributions.
14 (e) A participant who terminates his or her employee
15 status and elects to waive service credit under Section
16 15-154.2, is entitled to a refund of the accumulated normal,
17 additional and survivors insurance contributions, if any,
18 which were credited the participant for this service, or to
19 an additional annuity the value of which is equal to the
20 accumulated normal, additional and survivors insurance
21 contributions, if any; except that not more than one such
22 refund application may be made during any academic year. Upon
23 acceptance of this refund, the participant forfeits all
24 rights and credits accrued because of this service.
25 (f) If a police officer or firefighter receives a
26 retirement annuity under Rule 1, 2, or 3 of Section 15-136,
27 he or she shall be entitled at retirement to a refund of the
28 difference between his or her accumulated normal
29 contributions and the normal contributions which would have
30 accumulated had such person filed a waiver of the retirement
31 formula provided by Rule 4 of Section 15-136.
32 (g) If, at the time of retirement, a participant would
33 be entitled to a retirement annuity under Rule 1, 2, 3 or 4
34 of Section 15-136 that exceeds the maximum specified in
35 clause (1) of subsection (c) of Section 15-136, he or she
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1 shall be entitled to a refund of the employee contributions,
2 if any, paid under Section 15-157 after the date upon which
3 continuance of such contributions would have otherwise caused
4 the retirement annuity to exceed this maximum, plus compound
5 interest at the effective rates.
6 (Source: P.A. 90-448, eff. 8-16-97; 90-576, eff. 3-31-98.)
7 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
8 Sec. 15-157. Employee Contributions.
9 (a) Each participating employee shall make contributions
10 towards the retirement benefits payable under the retirement
11 program applicable to the employee from annuity of each
12 payment of earnings applicable to employment under this
13 system on and after the date of becoming a participant as
14 follows: Prior to September 1, 1949, 3 1/2% of earnings;
15 from September 1, 1949 to August 31, 1955, 5%; from September
16 1, 1955 to August 31, 1969, 6%; from September 1, 1969, 6
17 1/2%. These contributions are to be considered as normal
18 contributions for purposes of this Article.
19 Each participant who is a police officer or firefighter
20 shall make normal contributions of 8% of each payment of
21 earnings applicable to employment as a police officer or
22 firefighter under this system on or after September 1, 1981,
23 unless he or she files with the board within 60 days after
24 the effective date of this amendatory Act of 1991 or 60 days
25 after the board receives notice that he or she is employed as
26 a police officer or firefighter, whichever is later, a
27 written notice waiving the retirement formula provided by
28 Rule 4 of Section 15-136. This waiver shall be irrevocable.
29 If a participant had met the conditions set forth in Section
30 15-132.1 prior to the effective date of this amendatory Act
31 of 1991 but failed to make the additional normal
32 contributions required by this paragraph, he or she may elect
33 to pay the additional contributions plus compound interest at
34 the effective rate. If such payment is received by the
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1 board, the service shall be considered as police officer
2 service in calculating the retirement annuity under Rule 4 of
3 Section 15-136. While performing service described in clause
4 (i) or (ii) of Rule 4 of Section 15-136, a participating
5 employee shall be deemed to be employed as a firefighter for
6 the purpose of determining the rate of employee contributions
7 under this Section.
8 (b) Starting September 1, 1969, each participating
9 employee shall make additional contributions of 1/2 of 1% of
10 earnings to finance a portion of the cost of the annual
11 increases in retirement annuity provided under Section
12 15-136, except that with respect to participants in the
13 self-managed plan this additional contribution shall be used
14 to finance the benefits obtained under that retirement
15 program.
16 (c) In addition to the amounts described in subsections
17 (a) and (b) of this Section, each participating employee
18 shall make additional contributions of 1% of earnings
19 applicable under this system on and after August 1, 1959.
20 The contributions contribution made under this subsection (c)
21 shall be considered as survivor's insurance contributions for
22 purposes of this Article if the employee is covered under the
23 traditional benefit package, and such contributions shall be
24 considered as additional contributions for purposes of this
25 Article if the employee is participating in the self-managed
26 plan or has elected to participate in the portable benefit
27 package and has completed the applicable one-year waiting
28 period shall be used to finance survivors insurance benefits,
29 unless the participant has made an election under Section
30 15-154(a-1), in which case the contribution made under this
31 subsection shall be used to finance the benefits obtained
32 under that election. Contributions in excess of $80 during
33 any fiscal year beginning before August 31, 1969 and in
34 excess of $120 during any fiscal year thereafter until
35 September 1, 1971 shall be considered as additional
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1 contributions for purposes of this Article.
2 (d) If the board by board rule so permits and subject to
3 such conditions and limitations as may be specified in its
4 rules, a participant may make other additional contributions
5 of such percentage of earnings or amounts as the participant
6 shall elect in a written notice thereof received by the
7 board.
8 (e) That fraction of a participant's total accumulated
9 normal contributions, the numerator of which is equal to the
10 number of years of service in excess of that which is
11 required to qualify for the maximum retirement annuity, and
12 the denominator of which is equal to the total service of the
13 participant, shall be considered as accumulated additional
14 contributions. The determination of the applicable maximum
15 annuity and the adjustment in contributions required by this
16 provision shall be made as of the date of the participant's
17 retirement.
18 (f) Notwithstanding the foregoing, a participating
19 employee shall not be required to make contributions under
20 this Section after the date upon which continuance of such
21 contributions would otherwise cause his or her retirement
22 annuity to exceed the maximum retirement annuity as specified
23 in clause (1) of subsection (c) of Section 15-136.
24 (g) A participating employee may make contributions for
25 the purchase of service credit under this Article.
26 (Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97;
27 90-448, eff. 8-16-97; 90-511, eff. 8-22-97; 90-576, eff.
28 3-31-98.)
29 (40 ILCS 5/15-158.2)
30 Sec. 15-158.2. Self-managed plan Optional retirement
31 program for educational employees.
32 (a) Purpose. The General Assembly finds that it is
33 important for colleges and universities to be able to attract
34 and retain the most qualified employees and that in order to
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1 attract and retain these employees, colleges and universities
2 should have the flexibility to provide a defined contribution
3 plan as an alternative retirement program for eligible
4 employees who elect not to participate in a defined benefit
5 the other retirement program programs provided under this
6 Article. Accordingly, the State Universities Retirement
7 System is hereby authorized to establish and administer a
8 self-managed plan, which shall offer participating employees
9 the opportunity to accumulate assets for retirement through a
10 combination of employee and employer contributions that may
11 be invested in mutual funds, collective investment funds, or
12 other investment products and used to purchase annuity
13 contracts, either fixed or variable or a combination thereof.
14 The plan must be qualified under the Internal Revenue Code of
15 1986.
16 (b) Definitions. For the purposes of this Section,
17 "eligible employee" means an employee (other than an employee
18 performing service described in clause (i) or (ii) of Rule 4
19 of Section 15-136) who is eligible to participate in the
20 State Universities Retirement System and who does not have
21 sufficient age and service to qualify for a retirement
22 annuity under Section 15-135. A "currently eligible
23 employee" is an employee who becomes an eligible employee on
24 the effective date of the optional retirement program
25 established by the employee's employer. A "newly eligible
26 employee" is an employee who becomes an eligible employee
27 after the effective date of the optional retirement program
28 established by the employee's employer.
29 (b) Adoption by employers. (c) Program. Each employer
30 subject to this Article may elect to adopt the self-managed
31 plan established establish an optional retirement program
32 under this Section; this election is irrevocable. An
33 employer's election to adopt the self-managed plan makes
34 available to the eligible employees of that employer the
35 elections described in Section 15-134.5. for the eligible
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1 employees whom it employs. The optional retirement program
2 shall provide retirement benefits for participating employees
3 through the purchase of annuity contracts, either fixed or
4 variable or a combination thereof, through the purchase of
5 mutual funds, or through both and shall also provide for
6 disability benefits.
7 The State Universities Retirement System shall be the
8 plan sponsor for the self-managed plan and shall prepare a
9 plan document and prescribe such rules and procedures as are
10 considered necessary or desirable for the administration of
11 the self-managed plan program. Consistent with its fiduciary
12 duty to the participants and beneficiaries of the
13 self-managed plan program, the Board of Trustees of the
14 System may delegate aspects of plan program administration as
15 it sees fit to companies authorized to do business in this
16 State, to the employers, or to a combination of both.
17 The plan must be qualified under the Internal Revenue
18 Code of 1986.
19 (c) Selection of service providers and funding vehicles.
20 (d) Proposals. The System, in consultation with the
21 employers, shall solicit proposals to provide administrative
22 services and funding vehicles for the self-managed plan
23 participate in the program from insurance and annuity
24 companies and mutual fund companies, banks, trust companies,
25 or other financial institutions authorized to do business in
26 this State. In reviewing the proposals received and
27 approving and contracting with no fewer than 2 and no more
28 than 7 companies, at least 2 of which must be insurance and
29 annuity companies, the Board of Trustees of the System shall
30 consider, among other things, the following criteria:
31 (1) the nature and extent of the benefits that
32 would be provided to the participants;
33 (2) the reasonableness of the benefits in relation
34 to the premium charged;
35 (3) the suitability of the benefits to the needs
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1 and interests of the participating employees and the
2 employer;
3 (4) the ability of the company to provide benefits
4 under the contract and the financial stability of the
5 company; and
6 (5) the efficacy of the contract in the recruitment
7 and retention of employees.
8 An employer that elects to offer an optional retirement
9 program under subsection (c) may only select for
10 participation in the program 2 or more of the companies
11 approved by the Board of Trustees of the System. The System,
12 in consultation with the employers, shall periodically review
13 each approved company.; A company may continue to provide
14 administrative services and funding vehicles for the
15 self-managed plan participate in the program only so long as
16 it continues to be an approved company under contract with
17 the Board.
18 (d) Employee Direction. Employees who are participating
19 in the program must be allowed to direct the transfer of
20 their account balances among the various investment options
21 offered, subject to applicable contractual provisions. The
22 participant shall not be deemed a fiduciary by reason of
23 providing such investment direction. A person who is a
24 fiduciary shall not be liable for any loss resulting from
25 such investment direction and shall not be deemed to have
26 breached any fiduciary duty by acting in accordance with that
27 direction. Neither the System nor the employer guarantees
28 any of the investments in the employee's account balances.
29 (e) Participation. An employee eligible to participate
30 in the self-managed plan must make a written election in
31 accordance with the provisions of Section 15-134.5 and the
32 procedures established by the System. Participation in the
33 self-managed plan by an electing employee shall begin on the
34 first day of the first pay period following the later of the
35 date the employee's election is filed with the System or the
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1 effective date as of which the employee's employer begins to
2 offer participation in the self-managed plan. Employers may
3 not make the self-managed plan available earlier than January
4 1, 1998. An employee's participation in any other retirement
5 program administered by the System under this Article shall
6 terminate on the date that participation in the self-managed
7 plan begins.
8 An employee who has elected to participate in the
9 self-managed plan under this Section must continue
10 participation while employed in an eligible position, and may
11 not participate in any other retirement program administered
12 by the System under this Article while employed by that
13 employer or any other employer that has adopted the
14 self-managed plan, unless the self-managed plan is terminated
15 in accordance with subsection (i).
16 Participation in the self-managed plan under this Section
17 shall constitute membership in the State Universities
18 Retirement System.
19 A participant under this Section shall be entitled to the
20 benefits of Article 20 of this Code modified to reflect the
21 following principles:
22 (1) The amount of any retirement annuities payable
23 under this Section depend solely on the value of the
24 participant's vested account balances and are not subject
25 to a maximum annuity benefit limitation or any adjustment
26 pursuant to the proportional retirement annuity
27 provisions of Article 20. If a participant in the
28 self-managed plan under this Section elects to apply the
29 provisions of Article 20, the dollar amount of the
30 proportional retirement annuity payable from the System
31 shall be deemed to be zero and the provisions of the
32 second paragraph of Section 20-131 shall not apply with
33 respect to the retirement annuity benefits payable to the
34 participant under this Section.
35 (2) For purposes of Section 20-123 of this Code,
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1 the self-managed plan shall be treated as if it were
2 provided by a participating system that has no survivor's
3 annuity benefit.
4 (3) Notwithstanding Section 20-125 of this Code,
5 upon reemployment by a participating system of a retired
6 participant in the self-managed plan, the retirement
7 annuity payment made to such participant from any annuity
8 contracts acquired from the participant's self-managed
9 plan account balances shall not be suspended.
10 (f) Establishment of Initial Account Balance. If at the
11 time an employee elects to participate in the self-managed
12 plan he or she has rights and credits in the System due to
13 previous participation in the traditional benefit package,
14 the System shall establish for the employee an opening
15 account balance in the self-managed plan, equal to the amount
16 of contribution refund that the employee would be eligible to
17 receive under Section 15-154 if the employee terminated
18 employment on that date and elected a refund of
19 contributions, except that this hypothetical refund shall
20 include interest at the effective rate for the respective
21 years. The System shall transfer assets from the defined
22 benefit retirement program to the self-managed plan, as a tax
23 free transfer in accordance with Internal Revenue Service
24 guidelines, for purposes of funding the employee's opening
25 account balance.
26 (g) No Duplication of Service Credit. Notwithstanding
27 any other provision of this Article, an employee may not
28 purchase or receive service or service credit applicable to
29 any other retirement program administered by the System under
30 this Article for any period during which the employee was a
31 participant in the self-managed plan established under this
32 Section.
33 (e) System Conflict of Interest. In order to preclude
34 any conflict of interest by the System, only insurance and
35 annuity companies and mutual fund companies that are
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1 authorized to do business in this State may be approved, in
2 accordance with the procedures of subsection (d), to
3 participate in this program and offer investment options for
4 program participants.
5 (f) Account Balance Transfers. Employees who are
6 participating in the program must be allowed to transfer
7 their account balances from the investment options offered by
8 one of the companies selected by the employer to the
9 investment options offered by another company so selected,
10 subject to applicable contractual provisions.
11 (g) Participation. Any eligible employee may elect to
12 participate in the optional retirement program offered by the
13 employer under subsection (c). The election must be made in
14 writing and in the manner prescribed by the System. A
15 currently eligible employee must make this election within
16 one year after the effective date of the employer's optional
17 retirement program. A newly eligible employee must make this
18 election within 60 days after becoming an eligible employee.
19 A person may make the one-time irrevocable election
20 authorized under this Section or the election authorized
21 under Section 15-154(a-1), but may not make both elections.
22 The employer shall not remit contributions on behalf of a
23 newly eligible employee to the State Universities Retirement
24 System until the 60-day period has run unless an election by
25 the employee has been made earlier. Any eligible employee
26 interested in electing the optional retirement program
27 provided under this Section must be given a consultation with
28 the State Universities Retirement System before making that
29 election.
30 Participation in the optional retirement program shall
31 begin on the first day of the first pay period following the
32 date of election, but no earlier than January 1, 1998. The
33 employee's participation in any other retirement program
34 administered by the System under this Article shall terminate
35 on the date that participation in the optional retirement
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1 program begins, and the employee shall thereby be deemed to
2 have elected to receive a refund of contributions as provided
3 in Section 15-154, except that such deemed refund shall
4 include interest at the effective rate for the respective
5 years, and except that any funds which would have been
6 received shall instead be transferred directly to the
7 optional retirement program as a tax free transfer in
8 accordance with Internal Revenue Service guidelines.
9 Notwithstanding any other provision of this Code, an
10 employee may not purchase or receive service or service
11 credit applicable to any other retirement program
12 administered by the System under this Article for any period
13 during which the employee was a participant in the optional
14 retirement program established under this Section.
15 An employee who has elected to participate in the
16 optional retirement program under this Section must continue
17 participation while employed in an eligible position, and may
18 not participate in any other retirement program administered
19 by the System under this Article while employed by that
20 employer, unless the optional retirement program is
21 terminated in accordance with subsection (i).
22 Participation in the optional retirement program under
23 this Section shall constitute membership in the State
24 Universities Retirement System, although a participant under
25 this Section shall not be entitled to receive any benefits
26 under any other provisions of Article 15 or of Article 20.
27 An employee who receives a disability benefit or a retirement
28 benefit under this Section or an employee who receives a lump
29 sum distribution from a mutual fund company under this
30 Section and uses the lump sum to purchase an annuity shall be
31 considered an employee or an annuitant under Article 15 for
32 purposes of the State Employees Group Insurance Act of 1971.
33 Participation in the optional retirement program under this
34 Section creates a contractual relationship with respect to
35 the investment of the employee's account balance between the
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1 employee and the company providing the investment options for
2 the employee's account balance. Participation does not
3 create a contractual relationship between the employee and
4 the System or between the employee and his or her employer.
5 (h) Contributions. The self-managed plan shall be funded
6 by contributions from employees participating in the
7 self-managed plan and employer contributions as provided in
8 this Section.
9 The contribution rate for employees participating in the
10 self-managed plan optional retirement program under this
11 Section shall be equal to the employee contribution rate for
12 other participants in the System, as provided in Section
13 15-157. This required contribution shall may be made as an
14 "employer pick-up" under Section 414(h) of the Internal
15 Revenue Code of 1986 or any successor Section thereof. Any
16 employee participating in the System's traditional benefit
17 package prior to his or her election System or who elects to
18 participate in the self-managed plan optional retirement
19 program shall continue to have the employer pick up "pick-up"
20 the contributions required under Section 15-157 contribution.
21 However, the amounts picked up after the election of the
22 self-managed plan optional retirement program shall be
23 remitted to and treated as assets of the self-managed the
24 optional retirement plan. In no event shall an employee have
25 an option of receiving these amounts in cash. Employees may
26 make additional contributions to the self-managed plan in
27 accordance with procedures prescribed by the System, to the
28 extent permitted under rules prescribed by the System.
29 The program shall provide for employer contributions to
30 be credited to each self-managed plan participant at a rate
31 of no more than 7.6% of the participating employee's salary,
32 less the amount used by the System to provide disability
33 benefits for the employee. The amounts so credited shall be
34 paid into the participant's self-managed plan accounts in a
35 manner to be prescribed by the System.
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1 An amount of employer contribution, not exceeding 1% of
2 the participating employee's salary, shall be used for the
3 purpose of providing the disability benefits of the System to
4 the employee. Prior to the beginning of each plan year under
5 the self-managed plan, the Board of Trustees shall determine,
6 as a percentage of salary, the amount of employer
7 contributions to be allocated during that plan year for
8 providing disability benefits for employees in the
9 self-managed plan. The optional retirement program shall be
10 funded by contributions from employees participating in the
11 program and employer contributions as required by the plan.
12 The plan shall be funded in a manner consistent with the
13 requirements of Internal Revenue Code Section 412, and
14 regulations promulgated thereunder, as that Section applies
15 to money purchase plans.
16 The State of Illinois shall make contributions by
17 appropriations to the System of the employer contributions
18 required for employees who participate in the self-managed
19 plan optional retirement program under this Section. The
20 amount required shall be certified by the Board of Trustees
21 of the System and paid by the State in accordance with
22 Section 15-165. The System shall not be obligated to remit
23 the required employer contributions to any of the insurance
24 and annuity companies, and mutual fund companies, banks,
25 trust companies, financial institutions, or other sponsors of
26 any of the funding vehicles offered under the self-managed
27 plan participating in the optional retirement program under
28 subsection (d) until it has received the required employer
29 contributions from the State. In the event of a deficiency
30 in the amount of State contributions, the System shall
31 implement those procedures described in subsection (c) of
32 Section 15-165 to obtain the required funding from the
33 General Revenue Fund.
34 The contributions and interest thereon, and any benefits
35 based upon them, shall be treated as provided in the funding
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1 vehicles for this plan. An amount of up to 1% of each
2 participating employee's salary shall be taken from the
3 employer contribution to the optional retirement program and
4 shall be contributed, on the employee's behalf, to a plan
5 which the System offers to provide for disability benefits.
6 (i) Termination. The self-managed plan An optional
7 retirement program authorized under this Section may be
8 terminated by the System employer, subject to the terms of
9 any relevant contracts, and the System employer shall have no
10 obligation to reestablish the self-managed plan an optional
11 retirement program under this Section. This Section does not
12 create a right to continued participation in any self-managed
13 plan optional retirement program set up by the System an
14 employer under this Section. If the self-managed plan an
15 optional retirement program is terminated, the participants
16 shall have the right to participate in one of the other
17 retirement programs offered by the System and receive service
18 credit in such other retirement program for any years of
19 employment following the termination.
20 (j) Vesting; Withdrawal; Return to Service. A
21 participant in the self-managed plan becomes vested in the
22 employer contributions credited to his or her accounts in the
23 self-managed plan on the earliest to occur of the following:
24 (1) completion of 5 years of service with an employer
25 described in Section 15-106; (2) the death of the
26 participating employee while employed by an employer
27 described in Section 15-106, if the participant has completed
28 at least 1 1/2 years of service; or (3) the participant's
29 election to retire and apply the reciprocal provisions of
30 Article 20 of this Code.
31 A participant in the self-managed plan who receives a
32 distribution of his or her vested amounts from the
33 self-managed plan upon or after termination of employment
34 shall forfeit all service credit and accrued rights in the
35 System; if subsequently re-employed, the participant shall be
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1 considered a new employee. If a former participant again
2 becomes a participating employee (or becomes employed by a
3 participating system under Article 20 of this Code) and
4 continues as such for at least 2 years, all such rights,
5 service credits, and previous status as a participant shall
6 be restored upon repayment of the amount of the distribution,
7 without interest. Employer contributions shall be vested
8 after five years of employment.
9 (k) Benefit amounts. If an employee who is vested in
10 employer contributions terminates employment prior to
11 completing five years of service, the employee shall be
12 entitled to a benefit in accordance with the terms of the
13 employer's retirement plan which is based on the account
14 values accumulation value attributable to both employer and
15 employee the employee's contributions and any investment
16 return thereon.
17 If an employee who is not vested in employer
18 contributions terminates employment, the employee shall be
19 entitled to a benefit based solely on the account values
20 Benefits for employees who terminate with at least five years
21 of service shall be in accordance with the terms of the
22 optional retirement plan and based on the accumulation value
23 attributable to both the employer and the employee's
24 contributions and any investment return thereon, and the
25 employer contributions and any investment return thereon
26 shall be forfeited. Any employer contributions which are
27 forfeited shall be held in escrow by the company investing
28 those contributions and shall be used as directed by the
29 System for future allocations of to reduce the next premium
30 payment due from the employer contributions or for the
31 restoration of amounts previously forfeited by former
32 participants who again become participating employees.
33 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
34 90-576, eff. 3-31-98.)
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1 (40 ILCS 5/15-158.3)
2 Sec. 15-158.3. Reports on cost reduction; effect on
3 retirement at any age with 30 years of service.
4 (a) On or before November 15, 2001 and on or before
5 November 15th of each year thereafter, the Board shall have
6 the System's actuary prepare a report showing, on a fiscal
7 year by fiscal year basis, the actual rate of participation
8 in the self-managed plan optional retirement program
9 authorized by Section 15-158.2, (i) by employees of the
10 System's covered higher educational institutions who were
11 hired on or after the implementation date of the self-managed
12 plan optional retirement program and (ii) by other System
13 participants.
14 The actuary's report must also quantify the extent to
15 which employee optional retirement plan participation has
16 reduced the State's required contributions to the System,
17 expressed both in dollars and as a percentage of covered
18 payroll, in relation to what the State's contributions to the
19 System would have been (1) if the self-managed plan optional
20 retirement program had not been implemented, and (2) if 45%
21 of employees of the System's covered higher educational
22 institutions who were hired on or after the implementation
23 date of the self-managed plan optional retirement program had
24 elected to participate in the self-managed plan optional
25 retirement program and 10% of other System participants had
26 transferred to the self-managed plan optional retirement
27 program following its implementation.
28 (b) On or before November 15th of 2001 and on or before
29 November 15th of each year thereafter, the Illinois Board of
30 Higher Education, in conjunction with the Bureau of the
31 Budget, shall prepare a report showing, on a fiscal year by
32 fiscal year basis, the amount by which the costs associated
33 with compensable sick leave have been reduced as a result of
34 the termination of compensable sick leave accrual on and
35 after January 1, 1998 by employees of higher education
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1 institutions who are participants in the System.
2 (c) On or before November 15 of 2001 and on or before
3 November 15th of each year thereafter, the Department of
4 Central Management Services shall prepare a report showing,
5 on a fiscal year by fiscal year basis, the amount by which
6 the State's cost for health insurance coverage under the
7 State Employees Group Insurance Act of 1971 for retirees of
8 the State's universities and their survivors has declined as
9 a result of requiring some of those retirees and survivors to
10 contribute to the cost of their basic health insurance.
11 These year-by-year reductions in cost must be quantified both
12 in dollars and as a level percentage of payroll covered by
13 the System.
14 (d) The reports required under subsections (a), (b), and
15 (c) shall be disseminated to the Board, the Pension Laws
16 Commission, the Illinois Economic and Fiscal Commission, the
17 Illinois Board of Higher Education, and the Governor.
18 (e) The reports required under subsections (a), (b), and
19 (c) shall be taken into account by the Pension Laws
20 Commission in making any recommendation to extend by
21 legislation beyond December 31, 2002 the provision that
22 allows a System participant to retire at any age with 30 or
23 more years of service as authorized in Section 15-135. If
24 that provision is extended beyond December 31, 2002, and if
25 the most recent report under subsection (a) indicates that
26 actual State contributions to the System for the period
27 during which the self-managed plan optional retirement
28 program has been in operation have exceeded the projected
29 State contributions under the assumptions in clause (2) of
30 subsection (a), then any extension of the provision beyond
31 December 31, 2002 must require that the System's higher
32 educational institutions and agencies cover any funding
33 deficiency through an annual payment to the System out of
34 appropriate resources of their own.
35 (Source: P.A. 90-9, eff. 7-1-97.)
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1 (40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
2 Sec. 15-165. To certify amounts and submit vouchers.
3 (a) The Board shall certify to the Governor on or before
4 November 15 of each year the appropriation required from
5 State funds for the purposes of this System for the following
6 fiscal year. The certification shall include a copy of the
7 actuarial recommendations upon which it is based.
8 (b) The Board shall certify to the State Comptroller or
9 employer, as the case may be, from time to time, by its
10 president and secretary, with its seal attached, the amounts
11 payable to the System from the various funds.
12 (c) Beginning in State fiscal year 1996, on or as soon
13 as possible after the 15th day of each month the Board shall
14 submit vouchers for payment of State contributions to the
15 System, in a total monthly amount of one-twelfth of the
16 required annual State contribution certified under subsection
17 (a). These vouchers shall be paid by the State Comptroller
18 and Treasurer by warrants drawn on the funds appropriated to
19 the System for that fiscal year.
20 If in any month the amount remaining unexpended from all
21 other appropriations to the System for the applicable fiscal
22 year (including the appropriations to the System under
23 Section 8.12 of the State Finance Act and Section 1 of the
24 State Pension Funds Continuing Appropriation Act) is less
25 than the amount lawfully vouchered under this Section, the
26 difference shall be paid from the General Revenue Fund under
27 the continuing appropriation authority provided in Section
28 1.1 of the State Pension Funds Continuing Appropriation Act.
29 (d) So long as the payments received are the full amount
30 lawfully vouchered under this Section, payments received by
31 the System under this Section shall be applied first toward
32 the employer contribution to the self-managed plan optional
33 retirement program established under Section 15-158.2.
34 Payments shall be applied second toward the employer's
35 portion of the normal costs of the System, as defined in
-150- LRB9011159EGfgccr6
1 subsection (f) of Section 15-155. The balance shall be
2 applied toward the unfunded actuarial liabilities of the
3 System.
4 (e) In the event that the System does not receive, as a
5 result of legislative enactment or otherwise, payments
6 sufficient to fully fund the employer contribution to the
7 self-managed plan optional retirement program established
8 under Section 15-158.2 and to fully fund that portion of the
9 employer's portion of the normal costs of the System, as
10 calculated in accordance with Section 15-155(a-1), then any
11 payments received shall be applied proportionately to the
12 optional retirement program established under Section
13 15-158.2 and to the employer's portion of the normal costs of
14 the System, as calculated in accordance with Section
15 15-155(a-1).
16 (Source: P.A. 90-448, eff. 8-16-97.)
17 (40 ILCS 5/15-167) (from Ch. 108 1/2, par. 15-167)
18 Sec. 15-167. To invest money. To invest the funds of
19 the system, subject to the requirements and restrictions set
20 forth in Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111,
21 1-114, and 1-115, and 15-158.2(d) of this Code and to invest
22 in real estate acquired by purchase, gift, condemnation or
23 otherwise, and any office building or buildings existing or
24 to be constructed thereon, including any additions thereto or
25 expansions thereof, for the use of the system. The board may
26 lease surplus space in any of the buildings and use rental
27 proceeds for operation, maintenance, improving, expanding and
28 furnishing of the buildings or for any other lawful system
29 purpose.
30 No bank or savings and loan association shall receive
31 investment funds as permitted by this Section, unless it has
32 complied with the requirements established pursuant to
33 Section 6 of "An Act relating to certain investments of
34 public funds by public agencies", approved July 23, 1943, as
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1 now or hereafter amended. The limitations set forth in such
2 Section 6 shall be applicable only at the time of investment
3 and shall not require the liquidation of any investment at
4 any time.
5 The board shall have the authority to enter into such
6 agreements and to execute such documents as it determines to
7 be necessary to complete any investment transaction.
8 All investments shall be clearly held and accounted for
9 to indicate ownership by the board. The board may direct the
10 registration of securities in its own name or in the name of
11 a nominee created for the express purpose of registration of
12 securities by a national or state bank or trust company
13 authorized to conduct a trust business in the State of
14 Illinois.
15 Investments shall be carried at cost or at a value
16 determined in accordance with generally accepted accounting
17 principles and accounting procedures approved by the Board.
18 All additions to assets from income, interest, and
19 dividends from investments shall be used to pay benefits,
20 operating and administrative expenses of the system, debt
21 service, including any redemption premium, on any bonds
22 issued by the board, expenses incurred or deposits required
23 in connection with such bonds, and such other costs as may be
24 provided in accordance with this Article.
25 (Source: P.A. 90-19, eff. 6-20-97.)
26 (40 ILCS 5/18-129) (from Ch. 108 1/2, par. 18-129)
27 Sec. 18-129. Refund of contributions; repayment.
28 (a) A participant who ceases to be a judge may, upon
29 application to the Board, receive a refund of his or her
30 total contributions to the System including the contributions
31 made towards the automatic increase in retirement annuity and
32 contributions for the survivor's annuity, without interest,
33 provided he or she is not then immediately eligible to
34 receive a retirement annuity.
-152- LRB9011159EGfgccr6
1 Upon receipt of a refund, the applicant shall cease to be
2 a participant and shall thereupon relinquish all rights in
3 the System. However, upon again becoming a participant, the
4 judge shall receive credit for all previous judicial service
5 upon payment to the System of the amount refunded together
6 with interest at 4% per annum from the time of the refund to
7 the date of repayment.
8 (b) Upon death of a participant who did not become an
9 annuitant, where no spouse or other beneficiaries eligible
10 for an annuity survive, the participant's designated
11 beneficiary or estate shall be entitled to a refund of his or
12 her total contributions to the System, including
13 contributions made towards the automatic increase in
14 retirement annuity and contributions for the survivor's
15 annuity, without interest.
16 (c) Upon death of an annuitant, where no spouse or other
17 beneficiaries eligible for an annuity survive, the designated
18 beneficiary or estate shall receive a refund of the
19 contributions made for the survivor's annuity, without
20 interest. If the annuitant received annuity payments in the
21 aggregate less than his or her contributions for retirement
22 annuity and the contributions towards the automatic increase
23 in the retirement annuity, the designated beneficiary or
24 estate shall also be refunded the difference between the
25 total of such contributions, excluding interest, and the sum
26 of annuity payments made.
27 (d) A participant or annuitant whose marriage is
28 terminated by death or dissolution, an unmarried participant,
29 and an annuitant who was not married while he or she was a
30 judge, shall, upon application to the Board, receive a refund
31 of his or her contributions for the survivor's annuity,
32 without interest. Upon the issuance of a refund under this
33 subsection, the recipient's credit for survivor's annuity
34 purposes shall terminate and the recipient shall not
35 thereafter make contributions for survivor's annuity, except
-153- LRB9011159EGfgccr6
1 in accordance with subsection (f) or (g). Upon the death of
2 a participant or annuitant who received such a refund, any
3 eligible children shall nevertheless be entitled to the
4 child's annuities provided in Section 18-128.01.
5 (e) Upon the death of a surviving spouse who, together
6 with the deceased judge, did not receive annuity payments in
7 the aggregate equal to the judge's total contributions to the
8 System, the estate of the surviving spouse shall be refunded
9 the difference between the total payments and total
10 contributions, excluding interest.
11 (f) Upon marriage or remarriage, a participant or
12 annuitant shall receive full credit for survivor's annuity
13 purposes upon:
14 (1) in the case of a participant, making the
15 contributions required under Section 18-123 beginning on
16 the date of the marriage or remarriage;
17 (2) repaying in full any survivor's annuity
18 contributions that have been refunded; and
19 (3) making survivor's annuity contributions for the
20 period of participation during which he or she was
21 unmarried, together with interest thereon at 3% per
22 annum.
23 The time and manner of making such repayments shall be
24 prescribed by the Board.
25 (g) Upon marriage or remarriage, a participant who does
26 not make the payments required for full survivor's annuity
27 credit under subsection (f) may receive partial credit for
28 survivor's annuity by making survivor's annuity contributions
29 under Section 18-123 beginning on the date of the marriage or
30 remarriage.
31 Notwithstanding any other provision of this Article, the
32 survivor's annuity (but not any child's annuity) payable
33 under this Article on behalf of a deceased person with only
34 partial credit for survivor's annuity shall be reduced by
35 multiplying the amount of the survivor's annuity that would
-154- LRB9011159EGfgccr6
1 have been payable if the person had full credit by a
2 fraction, the numerator of which is the number of months of
3 service for which survivor's annuity contributions have been
4 credited in this System, and the denominator of which is the
5 total number of months of service in this System.
6 (Source: P.A. 86-273; 87-1265.)
7 (40 ILCS 5/18-133.1) (from Ch. 108 1/2, par. 18-133.1)
8 Sec. 18-133.1. Pickup of contributions.
9 (a) Each employer may pick up the participant
10 contributions required under Section 18-133 for all salary
11 earned after December 31, 1981. If an employer decides not
12 to pick up the contributions, the employee contributions
13 shall continue to be deducted from salary. If contributions
14 are picked up they shall be treated as employer contributions
15 in determining tax treatment under the United States Internal
16 Revenue Code. However, the employer shall continue to
17 withhold Federal and State income taxes based upon these
18 contributions until the Internal Revenue Service or the
19 Federal courts rule that pursuant to Section 414(h) of the
20 United States Internal Revenue Code, these contributions
21 shall not be included as gross income of the participant
22 until such time as they are distributed or made available.
23 The employer shall pay these participant contributions from
24 the same source of funds which is used in paying earnings to
25 the participant. The employer may pick up these
26 contributions by a reduction in the cash salary of the
27 participant or by an offset against a future salary increase
28 or by a combination of a reduction in salary and offset
29 against a future salary increase. If participant
30 contributions are picked up they shall be treated for all
31 purposes of this Article as participant contributions were
32 considered prior to the time they were picked up.
33 (b) Subject to the requirements of federal law, a
34 participant may elect to have the employer pick up optional
-155- LRB9011159EGfgccr6
1 contributions that the participant has elected to pay to the
2 System, and the contributions so picked up shall be treated
3 as employer contributions for the purposes of determining
4 federal tax treatment. The employer shall pick up the
5 contributions by a reduction in the cash salary of the
6 participant and shall pay the contributions from the same
7 fund that is used to pay earnings to the participant. The
8 election to have optional contributions picked up is
9 irrevocable and the optional contributions may not thereafter
10 be prepaid, by direct payment or otherwise. If the provision
11 authorizing the optional contribution requires payment by a
12 stated date (rather than the date of withdrawal or
13 retirement), that requirement shall be deemed to have been
14 satisfied if (i) on or before the stated date the participant
15 executes a valid irrevocable election to have the
16 contributions picked up under this subsection, and (ii) the
17 picked-up contributions are in fact paid to the System as
18 provided in the election.
19 (Source: P.A. 90-448, eff. 8-16-97.)
20 Section 10. The State Mandates Act is amended by adding
21 Section 8.22 as follows:
22 (30 ILCS 805/8.22 new)
23 Sec. 8.22. Exempt mandate. Notwithstanding Sections 6
24 and 8 of this Act, no reimbursement by the State is required
25 for the implementation of any mandate created by this
26 amendatory Act of 1998.
27 Section 99. Effective date. This Act takes effect upon
28 becoming law.".
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1 Submitted on , 1998.
2 ______________________________ _____________________________
3 Senator Representative
4 ______________________________ _____________________________
5 Senator Representative
6 ______________________________ _____________________________
7 Senator Representative
8 ______________________________ _____________________________
9 Senator Representative
10 ______________________________ _____________________________
11 Senator Representative
12 Committee for the Senate Committee for the House