[ Search ] [ Legislation ] [ Bill Summary ]
[ Home ] [ Back ] [ Bottom ]
| [ Engrossed ] | [ Enrolled ] | [ House Amendment 001 ] |
| [ Senate Amendment 001 ] |
90_SB0499
SEE INDEX
Amends the State Universities Article of the Pension
Code. Increases the System's authority to issue bonds,
allowing up to $20,000,000 to be outstanding at any one time.
Limits existing benefits by: (i) excluding certain earnings
after June 30, 1997 from the calculation of the final rate of
earnings; (ii) imposing additional requirements on return to
service following a leave of absence; (iii) requiring a
return to service within one year after discharge in order to
obtain credit for military service; and (iv) removing a
provision allowing beneficiaries to elect to receive death
benefits in multiple payments. (Article 13, Section 5 of the
Illinois Constitution may prevent these limitations from
applying to certain current or former members.) For new
participants only, limits credit for unused sick leave to a
maximum of one year. Changes the definition of "effective
rate of interest" by adding additional factors to be included
in determining the rate, including the desirability of
minimizing volatility in the rate from year to year; states
that the change is a clarification of existing law. Changes
provisions relating to the calculation of interest when
purchasing military service credit. Deletes provisions that
suspend or reduce the annuity of certain persons who return
to employment after retirement. Grants the Secretary of the
Board the power to issue subpoenas. Allows annuitants and
beneficiaries to authorize withholding from their annuities
and benefits. Allows the System to pay benefits to the
trustee of a trust created for the benefit of a minor or
person under legal disability; provides that the System is
not responsible for determining the validity of the trust and
must conclusively rely on the representations of the trustee.
Also makes technical changes. Effective immediately.
LRB9002319EGsb
LRB9002319EGsb
1 AN ACT to amend the Illinois Pension Code.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by
5 changing Sections 15-112, 15-113.2, 15-113.3, 15-113.4,
6 15-113.7, 15-125, 15-139, 15-143, 15-153.2, 15-157, 15-167.2,
7 15-185, 15-190 and 15-191 and adding Section 15-168.1 as
8 follows:
9 (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
10 Sec. 15-112. Final rate of earnings. "Final rate of
11 earnings": For an employee who is paid on an hourly basis or
12 who receives an annual salary in installments during 12
13 months of each academic year, the average annual earnings
14 during the 48 consecutive calendar month period ending with
15 the last day of final termination of employment or the 4
16 consecutive academic years of service in which the employee's
17 earnings were the highest, whichever is greater. For any
18 other employee, the average annual earnings during the 4
19 consecutive academic years of service in which his or her
20 earnings were the highest. For an employee with less than 48
21 months or 4 consecutive academic years of service, the
22 average earnings during his or her entire period of service.
23 The earnings of an employee with more than 36 months of
24 service prior to the date of becoming a participant are, for
25 such period, considered equal to the average earnings during
26 the last 36 months of such service. For an employee on leave
27 of absence with pay, or on leave of absence without pay who
28 makes contributions during such leave, earnings are assumed
29 to be equal to the basic compensation on the date the leave
30 began. For an employee on disability leave, earnings are
31 assumed to be equal to the basic compensation on the date
-2- LRB9002319EGsb
1 disability occurs or the average earnings during the 24
2 months immediately preceding the month in which disability
3 occurs, whichever is greater. If a participant is an employee
4 for at least 6 months during the academic year in which his
5 or her employment is terminated, the annual final rate of
6 earnings shall be 25% of the sum of (1) the annual basic
7 compensation for that year, and (2) the amount earned during
8 the 36 months immediately preceding that year, if this is
9 greater than the final rate of earnings as calculated under
10 the other provisions of this Section. In the determination
11 of the final rate of earnings for an employee, that part of
12 an employee's earnings for any academic year beginning after
13 June 30, 1997, which exceeds the employee's earnings with
14 that employer for the preceding year by more than 20 percent
15 shall be excluded; in the event that an employee has more
16 than one employer this limitation shall be calculated
17 separately for the earnings with each employer. In making
18 such calculation, only the basic compensation of employees
19 shall be considered, without regard to vacation or overtime
20 or to contracts for summer employment.
21 The following are not considered as earnings in
22 determining final rate of earnings: separation pay,
23 retirement pay, payment in lieu of unused sick leave and
24 payments from an employer for the period used in determining
25 final rate of earnings for any purpose other than services
26 rendered, leave of absence or vacation granted during that
27 period, and vacation of up to 56 work days allowed upon
28 termination of employment under a vacation policy of an
29 employer which was in effect on or before January 1, 1977.
30 Intermittent periods of service shall be considered as
31 consecutive in determining final rate of earnings.
32 (Source: P.A. 84-1472.)
33 (40 ILCS 5/15-113.2) (from Ch. 108 1/2, par. 15-113.2)
-3- LRB9002319EGsb
1 Sec. 15-113.2. Service for leaves of absence. "Service
2 for leaves of absence" includes those periods of leaves of
3 absence at less than 50% pay, except military leave and
4 periods of disability leave in excess of 60 days, for which
5 the employee pays the contributions required under Section
6 15-157 in accordance with rules prescribed by the board based
7 upon the employee's basic compensation on the date the leave
8 begins, or in the case of leave for service with a teacher
9 organization, based upon the actual compensation received by
10 the employee for such service after January 26, 1988, if the
11 employee so elects within 30 days of that date or the date
12 the leave for service with a teacher organization begins,
13 whichever is later; provided that the employee (1) returns to
14 employment covered by this system at the expiration of the
15 leave, or within 30 days after the termination of a
16 disability which occurs during the leave and continues this
17 employment at a percentage of time equal to or greater than
18 the percentage of time immediately preceding the leave of
19 absence for at least 8 consecutive months or a period equal
20 to the period of the leave, whichever is less, or (2) is
21 precluded from meeting the foregoing conditions because of
22 disability or death. If service credit is denied because the
23 employee fails to meet these conditions, the contributions
24 covering the leave of absence shall be refunded without
25 interest. The return to employment condition does not apply
26 if the leave of absence is for service with a teacher
27 organization and the leave of absence is in effect on the
28 effective date of this amendatory Act of 1993.
29 Service credit provided under this Section shall not
30 exceed 3 years in any period of 10 years, unless the employee
31 is on special leave granted by the employer for service with
32 a teacher organization. Commencing with the fourth year in
33 any period of 10 years, a participant on such special leave
34 is also required to pay employer contributions equal to the
-4- LRB9002319EGsb
1 normal cost as defined in Section 15-155, based upon the
2 employee's basic compensation on the date the leave begins,
3 or based upon the actual compensation received by the
4 employee for service with a teacher organization if the
5 employee has so elected.
6 (Source: P.A. 86-1488; 87-1265.)
7 (40 ILCS 5/15-113.3) (from Ch. 108 1/2, par. 15-113.3)
8 Sec. 15-113.3. Service for periods of military service.
9 "Service for periods of military service": Those periods,
10 not exceeding 5 years, during which a person served in the
11 armed forces of the United States, of which all but 2 years
12 must have immediately followed a period of employment with an
13 employer under this system or the State Employees' Retirement
14 System of Illinois; provided that the person received a
15 discharge other than dishonorable and again became an
16 employee under this system within one year after discharge.
17 However, for the up to 2 years of military service not
18 immediately following employment, the applicant must make
19 contributions to the System (1) at the rates provided in
20 Section 15-157 based upon the employee's basic compensation
21 on the last date as a participating employee prior to such
22 military service, or on the first date as a participating
23 employee after such military service, whichever is greater,
24 plus (2) an amount determined by the board to be equal to the
25 employer's normal cost of the benefits accrued for such
26 military service, plus (3) interest on items (1) and (2) at
27 the effective rate from the later of the date of first
28 membership in the System or the date of conclusion of
29 military service to the date of payment. The change in the
30 required contribution for purchased military credit made by
31 this amendatory Act of 1993 does not entitle any person to a
32 refund of contributions already paid.
33 The changes to this Section made by this amendatory Act
-5- LRB9002319EGsb
1 of 1991 shall apply not only to persons who on or after its
2 effective date are in service under the System, but also to
3 persons whose employment terminated prior to that date,
4 whether or not the person is an annuitant on that date. In
5 the case of an annuitant who applies for credit allowable
6 under this Section for a period of military service that did
7 not immediately follow employment, and who has made the
8 required contributions for such credit, the annuity shall be
9 recalculated to include the additional service credit, with
10 the increase taking effect on the date the System received
11 written notification of the annuitant's intent to purchase
12 the credit, if payment of all the required contributions is
13 made within 60 days of such notice, or else on the first
14 annuity payment date following the date of payment of the
15 required contributions. In calculating the automatic annual
16 increase for an annuity that has been recalculated under this
17 Section, the increase attributable to the additional service
18 allowable under this amendatory Act of 1991 shall be included
19 in the calculation of automatic annual increases accruing
20 after the effective date of the recalculation.
21 (Source: P.A. 87-794; 87-1265.)
22 (40 ILCS 5/15-113.4) (from Ch. 108 1/2, par. 15-113.4)
23 Sec. 15-113.4. Service for unused sick leave. "Service
24 for unused sick leave": A participant who is an employee
25 under this System or one of the other systems subject to
26 Article 20 of this Code within 60 days immediately preceding
27 the date on which his or her retirement annuity begins, is
28 entitled to credit for service for that portion of unused
29 sick leave earned in the course of employment with an
30 employer and credited on the date of termination of
31 employment by an employer for which payment is not received,
32 in accordance with the following schedule: 30 through 90
33 full calendar days and 20 through 59 full work days of unused
-6- LRB9002319EGsb
1 sick leave, 1/4 of a year of service; 91 through 180 full
2 calendar days and 60 through 119 full work days, 1/2 of a
3 year of service; 181 through 270 full calendar days and 120
4 through 179 full work days, 3/4 of a year of service; 271
5 through 360 full calendar days and 180 through 240 full work
6 days, one year of service. If a participant transfers from
7 one employer to another, the unused sick leave credited by
8 the previous employer shall be considered in determining
9 service to be credited under this Section, even if the
10 participant terminated service prior to the effective date of
11 P.A. 86-272 (August 23, 1989); if necessary, the retirement
12 annuity shall be recalculated to reflect such sick leave
13 credit. Each employer shall certify to the board the number
14 of days of unused sick leave accrued to the participant's
15 credit on the date that the participant's status as an
16 employee terminated. This period of unused sick leave shall
17 not be considered in determining the date the retirement
18 annuity begins.
19 The maximum service allowable under this Section is one
20 year. However, this maximum shall be applicable only to
21 those persons who become participants in the system after the
22 effective date of this amendatory Act of 1997.
23 (Source: P.A. 86-272; 87-794.)
24 (40 ILCS 5/15-113.7) (from Ch. 108 1/2, par. 15-113.7)
25 Sec. 15-113.7. Service for other public employment.
26 "Service for other public employment": Includes those
27 periods not exceeding the lesser of 10 years or 2/3 of the
28 service granted under other Sections of this Article dealing
29 with service credit, during which a person was employed full
30 time by the United States government, or by the government of
31 a state, or by a political subdivision of a state, or by an
32 agency or instrumentality of any of the foregoing, if the
33 person (1) cannot qualify for a retirement pension or other
-7- LRB9002319EGsb
1 benefit based upon employer contributions from another
2 retirement system, exclusive of federal social security,
3 based in whole or in part upon this employment, and (2) pays
4 the lesser of (A) an amount equal to 8% of his or her annual
5 basic compensation on the date of becoming a participating
6 employee subsequent to this service multiplied by the number
7 of years of such service, together with compound interest
8 from the date participation begins to the date payment is
9 received by the board at the rate of 6% per annum through
10 August 31, 1982, and at the effective rates after that date,
11 and (B) 50% of the actuarial value of the increase in the
12 retirement annuity provided by this service, and (3)
13 contributes for at least 5 years subsequent to this
14 employment to one or more of the following systems: the
15 State Universities Retirement System, the Teachers'
16 Retirement System of the State of Illinois, and the Public
17 School Teachers' Pension and Retirement Fund of Chicago. If
18 a function of a governmental unit as defined by Section
19 20-107 is transferred by law, in whole or in part to an
20 employer, and an employee transfers employment from this
21 governmental unit to such employer within 6 months of the
22 transfer of the function, the payment for service authorized
23 under this Section shall not exceed the amount which would
24 have been payable for this service to the retirement system
25 covering the governmental unit from which the function was
26 transferred.
27 The service granted under this Section shall not be
28 considered in determining whether the person has the minimum
29 of 8 years of service required to qualify for a retirement
30 annuity at age 55 or the 5 years of service required to
31 qualify for a retirement annuity at age 62, as provided in
32 Section 15-135. The maximum allowable service of 10 years
33 for this governmental employment shall be reduced by the
34 service credit which is validated under paragraph (3) of
-8- LRB9002319EGsb
1 Section 16-127 and paragraph one of Section 17-133.
2 Except as hereinafter provided, this Section shall not
3 apply to persons who become participants in the system after
4 September 1, 1974. Except as hereinafter provided, credit
5 for military service under this Section shall be allowed only
6 to persons who have applied for such credit before September
7 1, 1974. The foregoing September 1, 1974, limitations do not
8 apply to any person who became a participant in the system on
9 or before January 15, 1977, and prior thereto, had a minimum
10 of 20 years of service credit granted in the General Assembly
11 Retirement System.
12 (Source: P.A. 87-1265.)
13 (40 ILCS 5/15-125) (from Ch. 108 1/2, par. 15-125)
14 Sec. 15-125. "Prescribed Rate of Interest; Effective
15 Rate of Interest":
16 (1) "Prescribed rate of interest": The rate of interest
17 to be used in actuarial valuations and in development of
18 actuarial tables as determined by the board on the basis of
19 the probable average effective rate of interest on a long
20 term basis.
21 (2) "Effective rate of interest": The interest rate for
22 any fiscal year that is determined by the board based on
23 factors including the system's past and expected investment
24 experience; historical and expected fluctuations in the
25 market value of investments; the desirability of minimizing
26 volatility in the effective rate of interest from year to
27 year; the provision of reserves for anticipated losses upon
28 sales, redemptions, or other disposition of investments and
29 for variations in interest experience. This amendatory Act
30 of 1997 is a clarification of existing law. The interest rate
31 for any fiscal year determined by the board from the
32 investment experience of the preceding fiscal years and the
33 estimated investment experience of the current fiscal year.
-9- LRB9002319EGsb
1 In determining the effective rate of interest to be credited
2 to member contribution accounts and other reserves, the board
3 may provide for reserves for anticipated losses upon sales,
4 redemptions or other disposition of investments and for
5 reserves for variations in interest experience.
6 (Source: P.A. 79-1146.)
7 (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
8 Sec. 15-139. Retirement annuities; Cancellation;
9 Suspended during employment.
10 (a) If an annuitant returns to employment for an
11 employer within 60 days after the beginning of the retirement
12 annuity payment period, the retirement annuity shall be
13 cancelled, and the annuitant shall refund to the System the
14 total amount of the retirement annuity payments which he or
15 she received. If the retirement annuity is cancelled, the
16 participant shall continue to participate in the System.
17 (b) If an annuitant retires prior to age 60 and receives
18 or becomes entitled to receive during any month compensation
19 in excess of the monthly retirement annuity for services
20 performed after the date of retirement for any employer under
21 this System, the State Employees' Retirement System of
22 Illinois, or the Teachers' Retirement System of the State of
23 Illinois, that portion of the monthly retirement annuity
24 provided by employer contributions shall not be payable.
25 If an annuitant retires at age 60 or over and receives or
26 becomes entitled to receive during any academic year
27 compensation in excess of the difference between his or her
28 highest annual earnings prior to retirement and his or her
29 annual retirement annuity computed under Rule 1, Rule 2, Rule
30 3 or Rule 4 of Section 15-136 for services performed after
31 the date of retirement for any employer under this System,
32 that portion of the monthly retirement annuity provided by
33 employer contributions shall be reduced by an amount equal to
-10- LRB9002319EGsb
1 the compensation that exceeds such difference.
2 However, any remuneration received for serving as a
3 member of the Illinois Educational Labor Relations Board
4 shall be excluded from "compensation" for the purposes of
5 this subsection (b), and serving as a member of the Illinois
6 Educational Labor Relations Board shall not be deemed to be a
7 return to employment for the purposes of this Section. This
8 provision applies without regard to whether service was
9 terminated prior to the effective date of this amendatory Act
10 of 1991.
11 (b) (c) If an employer certifies that an annuitant has
12 been reemployed on a permanent and continuous basis or in a
13 position in which the annuitant is expected to serve for at
14 least 9 months, the annuitant shall resume his or her status
15 as a participating employee and shall be entitled to all
16 rights applicable to participating employees upon filing with
17 the board an election to forego all annuity payments during
18 the period of reemployment. Upon subsequent retirement, the
19 retirement annuity shall consist of the annuity which was
20 terminated by the reemployment, plus the additional
21 retirement annuity based upon service granted during the
22 period of reemployment, but the combined retirement annuity
23 shall not exceed the maximum annuity applicable on the date
24 of the last retirement.
25 The total service and earnings credited before and after
26 the initial date of retirement shall be considered in
27 determining eligibility of the employee or the employee's
28 beneficiary to benefits under this Article, and in
29 calculating final rate of earnings.
30 In determining the death benefit payable to a beneficiary
31 of an annuitant who again becomes a participating employee
32 under this Section, accumulated normal and additional
33 contributions shall be considered as the sum of the
34 accumulated normal and additional contributions at the date
-11- LRB9002319EGsb
1 of initial retirement and the accumulated normal and
2 additional contributions credited after that date, less the
3 sum of the annuity payments received by the annuitant.
4 The survivors insurance benefits provided under Section
5 15-145 shall not be applicable to an annuitant who resumes
6 his or her status as a participating employee, unless the
7 annuitant, at the time of initial retirement, has a survivors
8 insurance beneficiary who could qualify for such benefits.
9 If the annuitant's employment is terminated because of
10 circumstances other than death before 9 months from the date
11 of reemployment, the provisions of this Section regarding
12 resumption of status as a participating employee shall not
13 apply. The normal and survivors insurance contributions which
14 are deducted during this period shall be refunded to the
15 annuitant without interest, and subsequent benefits under
16 this Article shall be the same as those which were applicable
17 prior to the date the annuitant resumed employment.
18 (Source: P.A. 86-1488.)
19 (40 ILCS 5/15-143) (from Ch. 108 1/2, par. 15-143)
20 Sec. 15-143. Death benefits - General provisions. All
21 death benefits shall be paid as a single cash sum or
22 otherwise as the beneficiary and the board mutually agree,
23 except where an annuity is payable under Section 15-144. A
24 death benefit shall be paid as soon as practicable after
25 receipt by the board of (1) a written application by the
26 beneficiary and (2) such evidence of death and identification
27 as the board shall require.
28 (Source: P.A. 83-1440.)
29 (40 ILCS 5/15-153.2) (from Ch. 108 1/2, par. 15-153.2)
30 Sec. 15-153.2. Disability retirement annuity. A
31 participant whose disability benefits are discontinued under
32 the provisions of clause (6) (5) of Section 15-152, is
-12- LRB9002319EGsb
1 entitled to a disability retirement annuity of 35% of the
2 basic compensation which was payable to the participant at
3 the time that disability began, provided at least 2 licensed
4 and practicing physicians appointed by the board certify that
5 the participant has a medically determinable physical or
6 mental impairment which would prevent him or her from
7 engaging in any substantial gainful activity, and which can
8 be expected to result in death or which has lasted or can be
9 expected to last for a continuous period of not less than 12
10 months. The terms "medically determinable physical or mental
11 impairment" and "substantial gainful activity" shall have the
12 meanings ascribed to them in the "Social Security Act", as
13 now or hereafter amended, and the regulations issued
14 thereunder.
15 The disability retirement annuity payment period shall
16 begin immediately following the expiration of the disability
17 benefit payments under clause (6) (5) of Section 15-152 and
18 shall be discontinued when (1) the physical or mental
19 impairment no longer prevents the participant from engaging
20 in any substantial gainful activity, (2) the participant dies
21 or (3) the participant elects to receive a retirement annuity
22 under Sections 15-135 and 15-136. If a person's disability
23 retirement annuity is discontinued under clause (1), all
24 rights and credits accrued in the system on the date that the
25 disability retirement annuity began shall be restored, and
26 the disability retirement annuity paid shall be considered as
27 disability payments under clause (6) (5) of Section 15-152.
28 (Source: P.A. 83-1440.)
29 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
30 Sec. 15-157. Employee Contributions.
31 (a) Each participating employee shall make contributions
32 towards the retirement annuity of each payment of earnings
33 applicable to employment under this system on and after the
-13- LRB9002319EGsb
1 date of becoming a participant as follows: Prior to
2 September 1, 1949, 3 1/2% of earnings; from September 1, 1949
3 to August 31, 1955, 5%; from September 1, 1955 to August 31,
4 1969, 6%; from September 1, 1969, 6 1/2%. These
5 contributions are to be considered as normal contributions
6 for purposes of this Article.
7 Each participant who is a police officer or firefighter
8 shall make normal contributions of 8% of each payment of
9 earnings applicable to employment as a police officer or
10 firefighter under this system on or after September 1, 1981,
11 unless he or she files with the board within 60 days after
12 the effective date of this amendatory Act of 1991 or 60 days
13 after the board receives notice that he or she is employed as
14 a police officer or firefighter, whichever is later, a
15 written notice waiving the retirement formula provided by
16 Rule 4 of Section 15-136. This waiver shall be irrevocable.
17 If a participant had met the conditions set forth in Section
18 15-132.1 prior to the effective date of this amendatory Act
19 of 1991 but failed to make the additional normal
20 contributions required by this paragraph, he or she may elect
21 to pay the additional contributions plus compound interest at
22 the effective rate. If such payment is received by the
23 board, the service shall be considered as police officer
24 service in calculating the retirement annuity under Rule 4 of
25 Section 15-136.
26 (b) Starting September 1, 1969, each participating
27 employee shall make additional contributions of 1/2 of 1% of
28 earnings to finance a portion of the cost of the annual
29 increases in retirement annuity provided under Section
30 15-136.
31 (c) Each participating employee shall make survivors
32 insurance contributions of 1% of earnings applicable under
33 this system on and after August 1, 1959. Contributions in
34 excess of $80 during any fiscal year beginning before August
-14- LRB9002319EGsb
1 31, 1969 and in excess of $120 during any fiscal year
2 thereafter until September 1, 1971 shall be considered as
3 additional contributions for purposes of this Article.
4 (d) If the board by board rule so permits and subject to
5 such conditions and limitations as may be specified in its
6 rules, a participant may make other additional contributions
7 of such percentage of earnings or amounts as the participant
8 shall elect in a written notice thereof received by the
9 board.
10 (e) That fraction of a participant's total accumulated
11 normal contributions, the numerator of which is equal to the
12 number of years of service in excess of that which is
13 required to qualify for the maximum retirement annuity, and
14 the denominator of which is equal to the total service of the
15 participant, shall be considered as accumulated additional
16 contributions. The determination of the applicable maximum
17 annuity and the adjustment in contributions required by this
18 provision shall be made as of the date of the participant's
19 retirement.
20 (f) Notwithstanding the foregoing, a participating
21 employee shall not be required to make contributions under
22 this Section after the date upon which continuance of such
23 contributions would otherwise cause his or her retirement
24 annuity to exceed the maximum retirement annuity as specified
25 in clause (1) of subsection (c) of Section 15-136.
26 (Source: P.A. 86-272; 86-1488.)
27 (40 ILCS 5/15-167.2) (from Ch. 108 1/2, par. 15-167.2)
28 Sec. 15-167.2. To issue bonds. To borrow money and, in
29 evidence of its obligation to repay the borrowing, to issue
30 bonds for the purpose of financing the cost of any project.
31 The bonds shall be authorized pursuant to a resolution to be
32 adopted by the board setting forth all details in connection
33 with the bonds.
-15- LRB9002319EGsb
1 The principal amount of the outstanding bonds of the
2 board shall not at any time exceed $20,000,000 $10,000,000.
3 The bonds may be issued in one or more series, bear such
4 date or dates, become due at such time or times within 40
5 years, bear interest payable at such intervals and at such
6 rate or rates, which rates may be fixed or variable, be in
7 such denominations, be in such form, either coupon,
8 registered or book-entry, carry such conversion, registration
9 and exchange privileges, be subject to defeasance upon such
10 terms, have such rank or priority, be executed in such
11 manner, be payable in such medium of payment at such place or
12 places within or without the State of Illinois, make
13 provision for a corporate trustee within or without the State
14 of Illinois with respect to such bonds, prescribe the rights,
15 powers and duties thereof to be exercised for the benefit of
16 the board, the system and the protection of the bondholders,
17 provide for the holding in trust, investment and use of
18 moneys, funds and accounts held in connection therewith, be
19 subject to such terms of redemption with or without premium,
20 and be sold in such manner at private or public sale and at
21 such price, all as the board shall determine. Whenever bonds
22 are sold at a price less than par, they shall be sold at such
23 price and bear interest at such rate or rates that either the
24 true interest cost (yield) or the net interest rate, as may
25 be selected by the board, received upon the sale of such
26 bonds does not exceed the maximum interest rate permitted by
27 the Bond Authorization Act, as amended at the time of the
28 making of the contract.
29 Any bonds may be refunded or advance refunded upon such
30 terms as the board may determine for such term of years, not
31 exceeding 40 years, and in such principal amount, as may be
32 deemed necessary by the board. Any redemption premium
33 payable upon the redemption of bonds may be payable from the
34 proceeds of refunding bonds issued for the purpose of
-16- LRB9002319EGsb
1 refunding such bonds, from any lawfully available source or
2 from both refunding bond proceeds and such other sources.
3 The bonds or refunding bonds shall be obligations of the
4 board payable from the income, interest and dividends derived
5 from investments of the board, all as may be designated in
6 the resolution of the board authorizing the issuance of the
7 bonds. The bonds shall be secured as provided in the
8 authorizing resolution, which may, notwithstanding any other
9 provision of this Code, include a specific pledge or
10 assignment of and lien on or security interest in the income,
11 interest and dividends derived from investments of the board
12 and a specific pledge or assignment of and lien on or
13 security interest in any funds, reserves or accounts
14 established or provided for by the resolution of the board
15 authorizing the issuance of the bonds. The bonds or refunding
16 bonds shall not be payable from any employer or employee
17 contributions derived from State appropriations nor
18 constitute obligations or indebtedness of the State of
19 Illinois or of any municipal corporation or other body
20 politic and corporate in the State.
21 The holder or holders of any bonds issued by the board
22 may bring suits at law or proceedings in equity to compel the
23 performance and observance by the board or any of its agents
24 or employees of any contract or covenant made with the
25 holders of the bonds, to compel the board or any of its
26 agents or employees to perform any duties required to be
27 performed for the benefit of the holders of the bonds by the
28 provisions of the resolution authorizing their issuance, and
29 to enjoin the board or any of its agents or employees from
30 taking any action in conflict with any such contract or
31 covenant.
32 Notwithstanding the provisions of Section 15-188 of this
33 Code, if the board fails to pay the principal of, premium, if
34 any, or interest on any of the bonds as they become due, a
-17- LRB9002319EGsb
1 civil action to compel payment may be instituted in the
2 appropriate circuit court by the holder or holders of the
3 bonds upon which such default exists or by a trustee acting
4 on behalf of the holders.
5 No bonds may be issued under this Section until a copy of
6 the resolution of the board authorizing such bonds, certified
7 by the secretary of the board, has been filed with the
8 Governor of the State of Illinois.
9 "Bonds" means any instrument evidencing the obligation to
10 pay money, including without limitation bonds, notes,
11 installment or financing contracts, leases, certificates,
12 warrants, and any other evidences of indebtedness.
13 "Project" means the acquisition, construction, equipping,
14 improving, expanding and furnishing of any office building
15 for the use of the system, including any real estate or
16 interest in real estate necessary or useful in connection
17 therewith.
18 "Cost of any project" includes all capital costs of the
19 project, an amount for expenses of issuing any bonds to
20 finance such project, including underwriter's discount and
21 costs of bond insurance or other credit enhancement, an
22 amount necessary to provide for a reserve fund for the
23 payment of the principal of and interest on such bonds and an
24 amount to pay interest on such bonds for a period not to
25 exceed the greater of 2 years or a period ending 6 months
26 after the estimated date of completion of the project.
27 (Source: P.A. 86-1034.)
28 (40 ILCS 5/15-168.1 new)
29 Sec. 15-168.1. Testimony and the production of records.
30 The secretary of the Board shall have the power to issue
31 subpoenas to compel the attendance of witnesses and the
32 production of documents and records, including law
33 enforcement records maintained by law enforcement agencies,
-18- LRB9002319EGsb
1 in conjunction with a disability claim, administrative review
2 proceedings, or felony forfeiture investigation. The fees of
3 witnesses for attendance and travel shall be the same as the
4 fees of witnesses before the circuit courts of this State and
5 shall be paid by the party seeking the subpoena. The Board
6 may apply to any circuit court in the State for an order
7 requiring compliance with a subpoena issued under this
8 Section. Subpoenas issued under this Section shall be
9 subject to applicable provisions of the Code of Civil
10 Procedure.
11 (40 ILCS 5/15-185) (from Ch. 108 1/2, par. 15-185)
12 Sec. 15-185. Annuities, etc. Exempt. The accumulated
13 employee and employer contributions shall be held in trust
14 for each participant and annuitant, and this trust shall be
15 treated as a spendthrift trust. Except as provided in this
16 Article, all cash, securities and other property of this
17 system, all annuities and other benefits payable under this
18 Article and all accumulated credits of participants and
19 annuitants in this system and the right of any person to
20 receive an annuity or other benefit under this Article, or a
21 refund of contributions, shall not be subject to judgment,
22 execution, garnishment, attachment, or other seizure by
23 process, in bankruptcy or otherwise, nor to sale, pledge,
24 mortgage or other alienation, and shall not be assignable.
25 The board, however, may deduct from the benefits, refunds and
26 credits payable to the participant, annuitant or beneficiary,
27 amounts owed by the participant or annuitant to the system.
28 No attempted sale, transfer or assignment of any benefit,
29 refund or credit shall prevent the right of the board to make
30 the deduction and offset authorized in this Section. Any
31 participant or annuitant may authorize the board to deduct
32 from disability benefits or annuities, premiums due under any
33 group hospital-surgical insurance program which is sponsored
-19- LRB9002319EGsb
1 or approved by any employer; however, the deductions from
2 disability benefits may not begin prior to 6 months after the
3 disability occurs.
4 A person receiving an annuity or benefit may also
5 authorize withholding from such annuity or benefit for the
6 purposes enumerated in the State Salary and Annuity
7 Withholding Act.
8 This amendatory Act of 1989 is a clarification of
9 existing law and shall be applicable to every participant and
10 annuitant without regard to whether status as an employee
11 terminates before the effective date of this amendatory Act
12 of 1989.
13 (Source: P.A. 86-273; 86-1488.)
14 (40 ILCS 5/15-190) (from Ch. 108 1/2, par. 15-190)
15 Sec. 15-190. Persons under legal disability. If a person
16 is under legal disability when any right or privilege accrues
17 to him or her under this Article, a guardian may be appointed
18 pursuant to law, and may, on behalf of such person, claim and
19 exercise any such right or privilege with the same force and
20 effect as if the person had not been under a legal disability
21 and had claimed or exercised such right or privilege.
22 If a person's application for benefits or a physician's
23 certificate on file with the board shows that the person is
24 under a legal disability, and no guardian has been appointed
25 for his or her estate, the benefits payable under this
26 Article may be paid (1) directly to the person under legal
27 disability, or (2) to either parent of the person under legal
28 disability or any adult person with whom the person under
29 legal disability may at the time be living, provided only
30 that such parent or adult person to whom any amount is to be
31 paid shall have advised the board in writing that such amount
32 will be held or used for the benefit of the person under
33 legal disability, or (3) to the trustee of any trust created
-20- LRB9002319EGsb
1 for the sole benefit of the person under legal disability
2 while that person is living, provided only that the trustee
3 of such trust to whom any amount is to be paid shall have
4 advised the board in writing that such amount will be held or
5 used for the benefit of the person under legal disability.
6 The system shall not be required to determine the validity of
7 the trust or any of the terms thereof. The representation of
8 the trustee that the trust meets the requirements of this
9 Section shall be conclusive as to the system. The written
10 receipt of the person under legal disability or the other
11 person who receives such payment shall be an absolute
12 discharge of the system's liability in respect of the amount
13 so paid.
14 (Source: P.A. 86-1488.)
15 (40 ILCS 5/15-191) (from Ch. 108 1/2, par. 15-191)
16 Sec. 15-191. Payment of benefits to minors. If any
17 benefits under this Article become payable to a minor, the
18 board may make payment (1) directly to the minor, (2) to any
19 person who has legally qualified and is acting as guardian of
20 the minor's person or property in any jurisdiction, or (3) to
21 either parent of the minor or to any adult person with whom
22 the minor may at the time be living, provided only that the
23 parent or other person to whom any amount is to be paid shall
24 have advised the board in writing that such amount will be
25 held or used for the benefit of the minor, or (4) to the
26 trustee of any trust created for the sole benefit of the
27 minor while that minor is living, provided only that the
28 trustee of such trust to whom any amount is to be paid shall
29 have advised the board in writing that such amount will be
30 held or used for the benefit of the minor. The system shall
31 not be required to determine the validity of the trust or any
32 of the terms thereof. The representation of the trustee that
33 the trust meets the requirements of this Section shall be
-21- LRB9002319EGsb
1 conclusive as to the system. The written receipt of the
2 minor, parent, trustee, or other person who receives such
3 payment shall be an absolute discharge of the system's
4 liability in respect of the amount so paid.
5 (Source: P.A. 83-1440.)
6 (40 ILCS 5/15-144 rep.)
7 Section 10. The Illinois Pension Code is amended by
8 repealing Section 15-144.
9 Section 99. Effective date. This Act takes effect upon
10 becoming law.
-22- LRB9002319EGsb
1 INDEX
2 Statutes amended in order of appearance
3 40 ILCS 5/15-112 from Ch. 108 1/2, par. 15-112
4 40 ILCS 5/15-113.2 from Ch. 108 1/2, par. 15-113.2
5 40 ILCS 5/15-113.3 from Ch. 108 1/2, par. 15-113.3
6 40 ILCS 5/15-113.4 from Ch. 108 1/2, par. 15-113.4
7 40 ILCS 5/15-113.7 from Ch. 108 1/2, par. 15-113.7
8 40 ILCS 5/15-125 from Ch. 108 1/2, par. 15-125
9 40 ILCS 5/15-139 from Ch. 108 1/2, par. 15-139
10 40 ILCS 5/15-143 from Ch. 108 1/2, par. 15-143
11 40 ILCS 5/15-153.2 from Ch. 108 1/2, par. 15-153.2
12 40 ILCS 5/15-157 from Ch. 108 1/2, par. 15-157
13 40 ILCS 5/15-167.2 from Ch. 108 1/2, par. 15-167.2
14 40 ILCS 5/15-168.1 new
15 40 ILCS 5/15-185 from Ch. 108 1/2, par. 15-185
16 40 ILCS 5/15-190 from Ch. 108 1/2, par. 15-190
17 40 ILCS 5/15-191 from Ch. 108 1/2, par. 15-191
18 40 ILCS 5/15-144 rep.