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90_SB0665enr
40 ILCS 5/16-131.1 from Ch. 108 1/2, par. 16-131.1
Amends the Downstate Teacher Article of the Pension Code.
Removes obsolete provisions relating to the transfer of
credit to the General Assembly Retirement System. Effective
immediately.
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1 AN ACT in relation to public employee pensions.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The State Salary and Annuity Withholding Act
5 is amended by changing Sections 2, 4, 8, and 9 as follows:
6 (5 ILCS 365/2) (from Ch. 127, par. 352)
7 Sec. 2. Definitions. As used in this Act, unless the
8 context otherwise requires:
9 "Office" means the State Comptroller, the Board of
10 Trustees of the State Universities Retirement System, or the
11 Board of Trustees of any of the following institutions: the
12 University of Illinois, the Board of Trustees of Southern
13 Illinois University, Chicago State University, Eastern
14 Illinois University, Governors State University, Illinois
15 State University, Northeastern Illinois University, Northern
16 Illinois University, and Western Illinois University the
17 Board of Governors of State Colleges and Universities and the
18 universities and colleges under its jurisdiction and the
19 Board of Regents and the universities under its jurisdiction.
20 "Department" means any department, board, commission,
21 institution, officer, court, or any agency of the State
22 government, other than the University of Illinois, Southern
23 Illinois University, Chicago State University, Eastern
24 Illinois University, Governors State University, Illinois
25 State University, Northeastern Illinois University, Northern
26 Illinois University, and Western Illinois University,
27 receiving State appropriations and having the power to
28 certify payrolls to the Comptroller authorizing payments of
29 salary or wages from such appropriations from any State fund
30 or from trust funds held by the State Treasurer; and the
31 Board of Trustees of the General Assembly Retirement System,
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1 the Board of Trustees of the State Employees' Retirement
2 System of Illinois, the Board of Trustees of the Teachers'
3 Retirement System of the State of Illinois, and the Board of
4 Trustees of the Judges Retirement System of Illinois created
5 respectively by Articles 2, 14, 16, and 18 of the "Illinois
6 Pension Code.", approved March 18, 1963, as heretofore
7 amended;
8 "Employee" means any regular officer or employee who
9 receives salary or wages for personal service rendered to the
10 State of Illinois and, for the purpose of deduction for the
11 purchase of United States Savings Bonds, includes any State
12 contractual employee.;
13 "Annuitant" means a person receiving a service retirement
14 annuity allowance or ordinary or accidental disability
15 benefits under Article 2, Article 14, 15, 16, or Article 18
16 of the "Illinois Pension Code.", approved March 18, 1963, as
17 heretofore and hereafter amended;
18 "Annuity" means the service retirement annuity allowance
19 or accidental disability benefits received by an annuitant.
20 (Source: P.A. 89-4, eff. 1-1-96; revised 2-7-97.)
21 (5 ILCS 365/4) (from Ch. 127, par. 354)
22 Sec. 4. Authorization of withholding. An employee or
23 annuitant may authorize the withholding of a portion of his
24 salary, wages, or annuity for any one or more of the
25 following purposes:
26 (1) for purchase of United States Savings Bonds;
27 (2) for payment of premiums on life or accident and
28 health insurance as defined in Section 4 of the "Illinois
29 Insurance Code", approved June 29, 1937, as amended, and for
30 payment of premiums on policies of automobile insurance as
31 defined in Section 143.13 of the "Illinois Insurance Code",
32 as amended, and the personal multiperil coverages commonly
33 known as homeowner's insurance. However, no portion of
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1 salaries, wages or annuities may be withheld to pay premiums
2 on automobile, homeowner's, life or accident and health
3 insurance policies issued by any one insurance company or
4 insurance service company unless a minimum of 100 employees
5 or annuitants insured by that company authorize the
6 withholding by an Office within 6 months after such
7 withholding begins. If such minimum is not satisfied the
8 Office may discontinue withholding for such company. For any
9 insurance company or insurance service company which has not
10 previously had withholding, the Office may allow withholding
11 for premiums, where less than 100 policies have been written,
12 to cover a probationary period. An insurance company which
13 has discontinued withholding may reinstate it upon
14 presentation of facts indicating new management or
15 re-organization satisfactory to the Office;
16 (3) for payment to any labor organization designated by
17 the employee;
18 (4) for payment of dues to any association the
19 membership of which consists of State employees and former
20 State employees;
21 (5) for deposit in any credit union, in which State
22 employees are within the field of membership as a result of
23 their employment;
24 (6) for payment to or for the benefit of an institution
25 of higher education by an employee of that institution;
26 (7) for payment of parking fees at the underground
27 facility located south of the William G. Stratton State
28 Office Building in Springfield, the parking ramp located at
29 401 South College Street, west of the William G. Stratton
30 State Office Building in Springfield, or at the parking
31 facilities located on the Urbana-Champaign campus of the
32 University of Illinois;.
33 (8) for voluntary payment to the State of Illinois of
34 amounts then due and payable to the State;.
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1 (9) for investment purchases made as a participant in
2 College Savings Programs established pursuant to Section
3 30-15.8a of the School Code;.
4 (10) for voluntary payment to the Illinois Department of
5 Revenue of amounts due or to become due under the Illinois
6 Income Tax Act;
7 (11) for payment of optional contributions to a
8 retirement system subject to the provisions of the Illinois
9 Pension Code.
10 (Source: P.A. 88-161.)
11 (5 ILCS 365/8) (from Ch. 127, par. 358)
12 Sec. 8. Payment of certain amounts withheld.
13 (a) If a withholding authorization is for the purpose of
14 payment of insurance premiums or for payment to a labor
15 union, each Office shall make payments, as soon as payroll
16 warrants are prepared and verified, on behalf of the employee
17 or annuitant to the payee named in the authorization the
18 amount specified in the authorization. Such payments shall
19 be made by warrants prepared at the time the payroll is
20 processed.
21 (b) If a withholding authorization is for the purpose of
22 purchasing United States Savings Bonds, each Office, whenever
23 a sufficient sum has accumulated in the employee's account to
24 purchase a bond of the denomination directed by the employee
25 in his authorization, shall purchase such a United States
26 Savings Bond in the name designated by the employee and
27 deliver it to the employee.
28 (c) If a withholding authorization is for the purpose of
29 payment of parking fees pursuant to paragraph 7 of Section 4,
30 the State Comptroller shall deposit 80% of the amount
31 withheld in the Capital Development Bond Retirement and
32 Interest Fund in the State Treasury and 20% of the amount
33 withheld in the State Parking Facility Maintenance Fund in
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1 the State Treasury.
2 (d) If a withholding authorization is for the purpose of
3 payment of amounts due or to become due under the Illinois
4 Income Tax Act, the Office shall pay the amounts withheld
5 without delay directly to the Department of Revenue or to a
6 depositary designated by the Department of Revenue.
7 (Source: P.A. 83-619.)
8 (5 ILCS 365/9) (from Ch. 127, par. 359)
9 Sec. 9. Any authorization to withhold from the salary,
10 wages or annuity of an employee or annuitant shall terminate
11 and such withholding shall cease upon the happening of any of
12 the following events:
13 (1) termination of employment or termination of payment
14 of an annuity, as the case may be;
15 (2) written notice by the employee or annuitant of
16 cancellation of such former authorization, except that an
17 authorization to withhold for the payment of optional
18 contributions to a retirement system through an employer
19 pickup is irrevocable;
20 (3) expiration of the time during which such withholding
21 was authorized;
22 (4) when the total amount authorized to be withheld has
23 been so withheld.
24 Upon termination of authorization to purchase United
25 States Savings Bonds, any amount withheld from the salary or
26 wages of an employee for such purpose and which has not been
27 so used shall be immediately remitted by each Office to the
28 person from whose salary or wages such amount was withheld.
29 (Source: Laws 1965, p. 1244.)
30 Section 10. The State Employees Group Insurance Act of
31 1971 is amended by changing Sections 3 and 6.6 as follows:
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1 (5 ILCS 375/3) (from Ch. 127, par. 523)
2 (Text of Section before amendment by P.A. 89-507)
3 Sec. 3. Definitions. Unless the context otherwise
4 requires, the following words and phrases as used in this Act
5 shall have the following meanings. The Department may define
6 these and other words and phrases separately for the purpose
7 of implementing specific programs providing benefits under
8 this Act.
9 (a) "Administrative service organization" means any
10 person, firm or corporation experienced in the handling of
11 claims which is fully qualified, financially sound and
12 capable of meeting the service requirements of a contract of
13 administration executed with the Department.
14 (b) "Annuitant" means (1) an employee who retires, or
15 has retired, on or after January 1, 1966 on an immediate
16 annuity under the provisions of Articles 2, 14, 15 (including
17 an employee who has retired and is receiving a retirement
18 annuity under the an optional retirement program established
19 under Section 15-158.2 and who would also be eligible for a
20 retirement annuity had that person been a participant in the
21 State University Retirement System), paragraphs (b) or (c) of
22 Section 16-106, or Article 18 of the Illinois Pension Code;
23 (2) any person who was receiving group insurance coverage
24 under this Act as of March 31, 1978 by reason of his status
25 as an annuitant, even though the annuity in relation to which
26 such coverage was provided is a proportional annuity based on
27 less than the minimum period of service required for a
28 retirement annuity in the system involved; (3) any person not
29 otherwise covered by this Act who has retired as a
30 participating member under Article 2 of the Illinois Pension
31 Code but is ineligible for the retirement annuity under
32 Section 2-119 of the Illinois Pension Code; (4) the spouse of
33 any person who is receiving a retirement annuity under
34 Article 18 of the Illinois Pension Code and who is covered
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1 under a group health insurance program sponsored by a
2 governmental employer other than the State of Illinois and
3 who has irrevocably elected to waive his or her coverage
4 under this Act and to have his or her spouse considered as
5 the "annuitant" under this Act and not as a "dependent"; or
6 (5) an employee who retires, or has retired, from a qualified
7 position, as determined according to rules promulgated by the
8 Director, under a qualified local government or a qualified
9 rehabilitation facility or a qualified domestic violence
10 shelter or service. (For definition of "retired employee",
11 see (p) post).
12 (c) "Carrier" means (1) an insurance company, a
13 corporation organized under the Limited Health Service
14 Organization Act or the Voluntary Health Services Plan Act, a
15 partnership, or other nongovernmental organization, which is
16 authorized to do group life or group health insurance
17 business in Illinois, or (2) the State of Illinois as a
18 self-insurer.
19 (d) "Compensation" means salary or wages payable on a
20 regular payroll by the State Treasurer on a warrant of the
21 State Comptroller out of any State, trust or federal fund, or
22 by the Governor of the State through a disbursing officer of
23 the State out of a trust or out of federal funds, or by any
24 Department out of State, trust, federal or other funds held
25 by the State Treasurer or the Department, to any person for
26 personal services currently performed, and ordinary or
27 accidental disability benefits under Articles 2, 14, 15
28 (including ordinary or accidental disability benefits under
29 the an optional retirement program established under Section
30 15-158.2), paragraphs (b) or (c) of Section 16-106, or
31 Article 18 of the Illinois Pension Code, for disability
32 incurred after January 1, 1966, or benefits payable under the
33 Workers' Compensation or Occupational Diseases Act or
34 benefits payable under a sick pay plan established in
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1 accordance with Section 36 of the State Finance Act.
2 "Compensation" also means salary or wages paid to an employee
3 of any qualified local government or qualified rehabilitation
4 facility or a qualified domestic violence shelter or service.
5 (e) "Commission" means the State Employees Group
6 Insurance Advisory Commission authorized by this Act.
7 Commencing July 1, 1984, "Commission" as used in this Act
8 means the Illinois Economic and Fiscal Commission as
9 established by the Legislative Commission Reorganization Act
10 of 1984.
11 (f) "Contributory", when referred to as contributory
12 coverage, shall mean optional coverages or benefits elected
13 by the member toward the cost of which such member makes
14 contribution, or which are funded in whole or in part through
15 the acceptance of a reduction in earnings or the foregoing of
16 an increase in earnings by an employee, as distinguished from
17 noncontributory coverage or benefits which are paid entirely
18 by the State of Illinois without reduction of the member's
19 salary.
20 (g) "Department" means any department, institution,
21 board, commission, officer, court or any agency of the State
22 government receiving appropriations and having power to
23 certify payrolls to the Comptroller authorizing payments of
24 salary and wages against such appropriations as are made by
25 the General Assembly from any State fund, or against trust
26 funds held by the State Treasurer and includes boards of
27 trustees of the retirement systems created by Articles 2, 14,
28 15, 16 and 18 of the Illinois Pension Code. "Department"
29 also includes the Illinois Comprehensive Health Insurance
30 Board and the Illinois Rural Bond Bank.
31 (h) "Dependent", when the term is used in the context of
32 the health and life plan, means a member's spouse and any
33 unmarried child (1) from birth to age 19 including an adopted
34 child, a child who lives with the member from the time of the
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1 filing of a petition for adoption until entry of an order of
2 adoption, a stepchild or recognized child who lives with the
3 member in a parent-child relationship, or a child who lives
4 with the member if such member is a court appointed guardian
5 of the child, or (2) age 19 to 23 enrolled as a full-time
6 student in any accredited school, financially dependent upon
7 the member, and eligible as a dependent for Illinois State
8 income tax purposes, or (3) age 19 or over who is mentally or
9 physically handicapped as defined in the Illinois Insurance
10 Code. For the health plan only, the term "dependent" also
11 includes any person enrolled prior to the effective date of
12 this Section who is dependent upon the member to the extent
13 that the member may claim such person as a dependent for
14 Illinois State income tax deduction purposes; no other such
15 person may be enrolled.
16 (i) "Director" means the Director of the Illinois
17 Department of Central Management Services.
18 (j) "Eligibility period" means the period of time a
19 member has to elect enrollment in programs or to select
20 benefits without regard to age, sex or health.
21 (k) "Employee" means and includes each officer or
22 employee in the service of a department who (1) receives his
23 compensation for service rendered to the department on a
24 warrant issued pursuant to a payroll certified by a
25 department or on a warrant or check issued and drawn by a
26 department upon a trust, federal or other fund or on a
27 warrant issued pursuant to a payroll certified by an elected
28 or duly appointed officer of the State or who receives
29 payment of the performance of personal services on a warrant
30 issued pursuant to a payroll certified by a Department and
31 drawn by the Comptroller upon the State Treasurer against
32 appropriations made by the General Assembly from any fund or
33 against trust funds held by the State Treasurer, and (2) is
34 employed full-time or part-time in a position normally
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1 requiring actual performance of duty during not less than 1/2
2 of a normal work period, as established by the Director in
3 cooperation with each department, except that persons elected
4 by popular vote will be considered employees during the
5 entire term for which they are elected regardless of hours
6 devoted to the service of the State, and (3) except that
7 "employee" does not include any person who is not eligible by
8 reason of such person's employment to participate in one of
9 the State retirement systems under Articles 2, 14, 15 (either
10 the regular Article 15 system or the an optional retirement
11 program established under Section 15-158.2) or 18, or under
12 paragraph (b) or (c) of Section 16-106, of the Illinois
13 Pension Code, but such term does include persons who are
14 employed during the 6 month qualifying period under Article
15 14 of the Illinois Pension Code. Such term also includes any
16 person who (1) after January 1, 1966, is receiving ordinary
17 or accidental disability benefits under Articles 2, 14, 15
18 (including ordinary or accidental disability benefits under
19 the an optional retirement program established under Section
20 15-158.2), paragraphs (b) or (c) of Section 16-106, or
21 Article 18 of the Illinois Pension Code, for disability
22 incurred after January 1, 1966, (2) receives total permanent
23 or total temporary disability under the Workers' Compensation
24 Act or Occupational Disease Act as a result of injuries
25 sustained or illness contracted in the course of employment
26 with the State of Illinois, or (3) is not otherwise covered
27 under this Act and has retired as a participating member
28 under Article 2 of the Illinois Pension Code but is
29 ineligible for the retirement annuity under Section 2-119 of
30 the Illinois Pension Code. However, a person who satisfies
31 the criteria of the foregoing definition of "employee" except
32 that such person is made ineligible to participate in the
33 State Universities Retirement System by clause (4) of the
34 first paragraph of Section 15-107 of the Illinois Pension
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1 Code is also an "employee" for the purposes of this Act.
2 "Employee" also includes any person receiving or eligible for
3 benefits under a sick pay plan established in accordance with
4 Section 36 of the State Finance Act. "Employee" also includes
5 each officer or employee in the service of a qualified local
6 government, including persons appointed as trustees of
7 sanitary districts regardless of hours devoted to the service
8 of the sanitary district, and each employee in the service of
9 a qualified rehabilitation facility and each full-time
10 employee in the service of a qualified domestic violence
11 shelter or service, as determined according to rules
12 promulgated by the Director.
13 (l) "Member" means an employee, annuitant, retired
14 employee or survivor.
15 (m) "Optional coverages or benefits" means those
16 coverages or benefits available to the member on his or her
17 voluntary election, and at his or her own expense.
18 (n) "Program" means the group life insurance, health
19 benefits and other employee benefits designed and contracted
20 for by the Director under this Act.
21 (o) "Health plan" means a self-insured health insurance
22 program offered by the State of Illinois for the purposes of
23 benefiting employees by means of providing, among others,
24 wellness programs, utilization reviews, second opinions and
25 medical fee reviews, as well as for paying for hospital and
26 medical care up to the maximum coverage provided by the plan,
27 to its members and their dependents.
28 (p) "Retired employee" means any person who would be an
29 annuitant as that term is defined herein but for the fact
30 that such person retired prior to January 1, 1966. Such term
31 also includes any person formerly employed by the University
32 of Illinois in the Cooperative Extension Service who would be
33 an annuitant but for the fact that such person was made
34 ineligible to participate in the State Universities
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1 Retirement System by clause (4) of the first paragraph of
2 Section 15-107 of the Illinois Pension Code.
3 (q) "Survivor" means a person receiving an annuity as a
4 survivor of an employee or of an annuitant. "Survivor" also
5 includes: (1) the surviving dependent of a person who
6 satisfies the definition of "employee" except that such
7 person is made ineligible to participate in the State
8 Universities Retirement System by clause (4) of the first
9 paragraph of Section 15-107 of the Illinois Pension Code; and
10 (2) the surviving dependent of any person formerly employed
11 by the University of Illinois in the Cooperative Extension
12 Service who would be an annuitant except for the fact that
13 such person was made ineligible to participate in the State
14 Universities Retirement System by clause (4) of the first
15 paragraph of Section 15-107 of the Illinois Pension Code.
16 (r) "Medical services" means the services provided
17 within the scope of their licenses by practitioners in all
18 categories licensed under the Medical Practice Act of 1987.
19 (s) "Unit of local government" means any county,
20 municipality, township, school district, special district or
21 other unit, designated as a unit of local government by law,
22 which exercises limited governmental powers or powers in
23 respect to limited governmental subjects, any not-for-profit
24 association with a membership that primarily includes
25 townships and township officials, that has duties that
26 include provision of research service, dissemination of
27 information, and other acts for the purpose of improving
28 township government, and that is funded wholly or partly in
29 accordance with Section 85-15 of the Township Code; any
30 not-for-profit corporation or association, with a membership
31 consisting primarily of municipalities, that operates its own
32 utility system, and provides research, training,
33 dissemination of information, or other acts to promote
34 cooperation between and among municipalities that provide
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1 utility services and for the advancement of the goals and
2 purposes of its membership; and the Illinois Association of
3 Park Districts. "Qualified local government" means a unit of
4 local government approved by the Director and participating
5 in a program created under subsection (i) of Section 10 of
6 this Act.
7 (t) "Qualified rehabilitation facility" means any
8 not-for-profit organization that is accredited by the
9 Commission on Accreditation of Rehabilitation Facilities or
10 certified by the Department of Mental Health and
11 Developmental Disabilities to provide services to persons
12 with disabilities and which receives funds from the State of
13 Illinois for providing those services, approved by the
14 Director and participating in a program created under
15 subsection (j) of Section 10 of this Act.
16 (u) "Qualified domestic violence shelter or service"
17 means any Illinois domestic violence shelter or service and
18 its administrative offices funded by the Illinois Department
19 of Public Aid, approved by the Director and participating in
20 a program created under subsection (k) of Section 10.
21 (v) "TRS benefit recipient" means a person who:
22 (1) is not a "member" as defined in this Section;
23 and
24 (2) is receiving a monthly benefit or retirement
25 annuity under Article 16 of the Illinois Pension Code;
26 and
27 (3) either (i) has at least 8 years of creditable
28 service under Article 16 of the Illinois Pension Code, or
29 (ii) was enrolled in the health insurance program offered
30 under that Article on January 1, 1996, or (iii) is the
31 survivor of a benefit recipient who had at least 8 years
32 of creditable service under Article 16 of the Illinois
33 Pension Code or was enrolled in the health insurance
34 program offered under that Article on the effective date
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1 of this amendatory Act of 1995, or (iv) is a recipient or
2 survivor of a recipient of a disability benefit under
3 Article 16 of the Illinois Pension Code.
4 (w) "TRS dependent beneficiary" means a person who:
5 (1) is not a "member" or "dependent" as defined in
6 this Section; and
7 (2) is a TRS benefit recipient's: (A) spouse, (B)
8 dependent parent who is receiving at least half of his or
9 her support from the TRS benefit recipient, or (C)
10 unmarried natural or adopted child who is (i) under age
11 19, or (ii) enrolled as a full-time student in an
12 accredited school, financially dependent upon the TRS
13 benefit recipient, eligible as a dependent for Illinois
14 State income tax purposes, and either is under age 23 24
15 or was, on January 1, 1996, participating as a dependent
16 beneficiary in the health insurance program offered under
17 Article 16 of the Illinois Pension Code, or (iii) age 19
18 or over who is mentally or physically handicapped as
19 defined in the Illinois Insurance Code.
20 (x) "Military leave with pay and benefits" refers to
21 individuals in basic training for reserves, special/advanced
22 training, annual training, emergency call up, or activation
23 by the President of the United States with approved pay and
24 benefits.
25 (y) "Military leave without pay and benefits" refers to
26 individuals who enlist for active duty in a regular component
27 of the U.S. Armed Forces or other duty not specified or
28 authorized under military leave with pay and benefits.
29 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
30 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
31 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-628,
32 eff. 8-9-96; revised 8-23-96.)
33 (Text of Section after amendment by P.A. 89-507)
34 Sec. 3. Definitions. Unless the context otherwise
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1 requires, the following words and phrases as used in this Act
2 shall have the following meanings. The Department may define
3 these and other words and phrases separately for the purpose
4 of implementing specific programs providing benefits under
5 this Act.
6 (a) "Administrative service organization" means any
7 person, firm or corporation experienced in the handling of
8 claims which is fully qualified, financially sound and
9 capable of meeting the service requirements of a contract of
10 administration executed with the Department.
11 (b) "Annuitant" means (1) an employee who retires, or
12 has retired, on or after January 1, 1966 on an immediate
13 annuity under the provisions of Articles 2, 14, 15 (including
14 an employee who has retired and is receiving a retirement
15 annuity under the an optional retirement program established
16 under Section 15-158.2 and who would also be eligible for a
17 retirement annuity had that person been a participant in the
18 State University Retirement System), paragraphs (b) or (c) of
19 Section 16-106, or Article 18 of the Illinois Pension Code;
20 (2) any person who was receiving group insurance coverage
21 under this Act as of March 31, 1978 by reason of his status
22 as an annuitant, even though the annuity in relation to which
23 such coverage was provided is a proportional annuity based on
24 less than the minimum period of service required for a
25 retirement annuity in the system involved; (3) any person not
26 otherwise covered by this Act who has retired as a
27 participating member under Article 2 of the Illinois Pension
28 Code but is ineligible for the retirement annuity under
29 Section 2-119 of the Illinois Pension Code; (4) the spouse of
30 any person who is receiving a retirement annuity under
31 Article 18 of the Illinois Pension Code and who is covered
32 under a group health insurance program sponsored by a
33 governmental employer other than the State of Illinois and
34 who has irrevocably elected to waive his or her coverage
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1 under this Act and to have his or her spouse considered as
2 the "annuitant" under this Act and not as a "dependent"; or
3 (5) an employee who retires, or has retired, from a qualified
4 position, as determined according to rules promulgated by the
5 Director, under a qualified local government or a qualified
6 rehabilitation facility or a qualified domestic violence
7 shelter or service. (For definition of "retired employee",
8 see (p) post).
9 (c) "Carrier" means (1) an insurance company, a
10 corporation organized under the Limited Health Service
11 Organization Act or the Voluntary Health Services Plan Act, a
12 partnership, or other nongovernmental organization, which is
13 authorized to do group life or group health insurance
14 business in Illinois, or (2) the State of Illinois as a
15 self-insurer.
16 (d) "Compensation" means salary or wages payable on a
17 regular payroll by the State Treasurer on a warrant of the
18 State Comptroller out of any State, trust or federal fund, or
19 by the Governor of the State through a disbursing officer of
20 the State out of a trust or out of federal funds, or by any
21 Department out of State, trust, federal or other funds held
22 by the State Treasurer or the Department, to any person for
23 personal services currently performed, and ordinary or
24 accidental disability benefits under Articles 2, 14, 15
25 (including ordinary or accidental disability benefits under
26 the an optional retirement program established under Section
27 15-158.2), paragraphs (b) or (c) of Section 16-106, or
28 Article 18 of the Illinois Pension Code, for disability
29 incurred after January 1, 1966, or benefits payable under the
30 Workers' Compensation or Occupational Diseases Act or
31 benefits payable under a sick pay plan established in
32 accordance with Section 36 of the State Finance Act.
33 "Compensation" also means salary or wages paid to an employee
34 of any qualified local government or qualified rehabilitation
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1 facility or a qualified domestic violence shelter or service.
2 (e) "Commission" means the State Employees Group
3 Insurance Advisory Commission authorized by this Act.
4 Commencing July 1, 1984, "Commission" as used in this Act
5 means the Illinois Economic and Fiscal Commission as
6 established by the Legislative Commission Reorganization Act
7 of 1984.
8 (f) "Contributory", when referred to as contributory
9 coverage, shall mean optional coverages or benefits elected
10 by the member toward the cost of which such member makes
11 contribution, or which are funded in whole or in part through
12 the acceptance of a reduction in earnings or the foregoing of
13 an increase in earnings by an employee, as distinguished from
14 noncontributory coverage or benefits which are paid entirely
15 by the State of Illinois without reduction of the member's
16 salary.
17 (g) "Department" means any department, institution,
18 board, commission, officer, court or any agency of the State
19 government receiving appropriations and having power to
20 certify payrolls to the Comptroller authorizing payments of
21 salary and wages against such appropriations as are made by
22 the General Assembly from any State fund, or against trust
23 funds held by the State Treasurer and includes boards of
24 trustees of the retirement systems created by Articles 2, 14,
25 15, 16 and 18 of the Illinois Pension Code. "Department"
26 also includes the Illinois Comprehensive Health Insurance
27 Board and the Illinois Rural Bond Bank.
28 (h) "Dependent", when the term is used in the context of
29 the health and life plan, means a member's spouse and any
30 unmarried child (1) from birth to age 19 including an adopted
31 child, a child who lives with the member from the time of the
32 filing of a petition for adoption until entry of an order of
33 adoption, a stepchild or recognized child who lives with the
34 member in a parent-child relationship, or a child who lives
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1 with the member if such member is a court appointed guardian
2 of the child, or (2) age 19 to 23 enrolled as a full-time
3 student in any accredited school, financially dependent upon
4 the member, and eligible as a dependent for Illinois State
5 income tax purposes, or (3) age 19 or over who is mentally or
6 physically handicapped as defined in the Illinois Insurance
7 Code. For the health plan only, the term "dependent" also
8 includes any person enrolled prior to the effective date of
9 this Section who is dependent upon the member to the extent
10 that the member may claim such person as a dependent for
11 Illinois State income tax deduction purposes; no other such
12 person may be enrolled.
13 (i) "Director" means the Director of the Illinois
14 Department of Central Management Services.
15 (j) "Eligibility period" means the period of time a
16 member has to elect enrollment in programs or to select
17 benefits without regard to age, sex or health.
18 (k) "Employee" means and includes each officer or
19 employee in the service of a department who (1) receives his
20 compensation for service rendered to the department on a
21 warrant issued pursuant to a payroll certified by a
22 department or on a warrant or check issued and drawn by a
23 department upon a trust, federal or other fund or on a
24 warrant issued pursuant to a payroll certified by an elected
25 or duly appointed officer of the State or who receives
26 payment of the performance of personal services on a warrant
27 issued pursuant to a payroll certified by a Department and
28 drawn by the Comptroller upon the State Treasurer against
29 appropriations made by the General Assembly from any fund or
30 against trust funds held by the State Treasurer, and (2) is
31 employed full-time or part-time in a position normally
32 requiring actual performance of duty during not less than 1/2
33 of a normal work period, as established by the Director in
34 cooperation with each department, except that persons elected
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1 by popular vote will be considered employees during the
2 entire term for which they are elected regardless of hours
3 devoted to the service of the State, and (3) except that
4 "employee" does not include any person who is not eligible by
5 reason of such person's employment to participate in one of
6 the State retirement systems under Articles 2, 14, 15 (either
7 the regular Article 15 system or the an optional retirement
8 program established under Section 15-158.2) or 18, or under
9 paragraph (b) or (c) of Section 16-106, of the Illinois
10 Pension Code, but such term does include persons who are
11 employed during the 6 month qualifying period under Article
12 14 of the Illinois Pension Code. Such term also includes any
13 person who (1) after January 1, 1966, is receiving ordinary
14 or accidental disability benefits under Articles 2, 14, 15
15 (including ordinary or accidental disability benefits under
16 the an optional retirement program established under Section
17 15-158.2), paragraphs (b) or (c) of Section 16-106, or
18 Article 18 of the Illinois Pension Code, for disability
19 incurred after January 1, 1966, (2) receives total permanent
20 or total temporary disability under the Workers' Compensation
21 Act or Occupational Disease Act as a result of injuries
22 sustained or illness contracted in the course of employment
23 with the State of Illinois, or (3) is not otherwise covered
24 under this Act and has retired as a participating member
25 under Article 2 of the Illinois Pension Code but is
26 ineligible for the retirement annuity under Section 2-119 of
27 the Illinois Pension Code. However, a person who satisfies
28 the criteria of the foregoing definition of "employee" except
29 that such person is made ineligible to participate in the
30 State Universities Retirement System by clause (4) of the
31 first paragraph of Section 15-107 of the Illinois Pension
32 Code is also an "employee" for the purposes of this Act.
33 "Employee" also includes any person receiving or eligible for
34 benefits under a sick pay plan established in accordance with
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1 Section 36 of the State Finance Act. "Employee" also includes
2 each officer or employee in the service of a qualified local
3 government, including persons appointed as trustees of
4 sanitary districts regardless of hours devoted to the service
5 of the sanitary district, and each employee in the service of
6 a qualified rehabilitation facility and each full-time
7 employee in the service of a qualified domestic violence
8 shelter or service, as determined according to rules
9 promulgated by the Director.
10 (l) "Member" means an employee, annuitant, retired
11 employee or survivor.
12 (m) "Optional coverages or benefits" means those
13 coverages or benefits available to the member on his or her
14 voluntary election, and at his or her own expense.
15 (n) "Program" means the group life insurance, health
16 benefits and other employee benefits designed and contracted
17 for by the Director under this Act.
18 (o) "Health plan" means a self-insured health insurance
19 program offered by the State of Illinois for the purposes of
20 benefiting employees by means of providing, among others,
21 wellness programs, utilization reviews, second opinions and
22 medical fee reviews, as well as for paying for hospital and
23 medical care up to the maximum coverage provided by the plan,
24 to its members and their dependents.
25 (p) "Retired employee" means any person who would be an
26 annuitant as that term is defined herein but for the fact
27 that such person retired prior to January 1, 1966. Such term
28 also includes any person formerly employed by the University
29 of Illinois in the Cooperative Extension Service who would be
30 an annuitant but for the fact that such person was made
31 ineligible to participate in the State Universities
32 Retirement System by clause (4) of the first paragraph of
33 Section 15-107 of the Illinois Pension Code.
34 (q) "Survivor" means a person receiving an annuity as a
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1 survivor of an employee or of an annuitant. "Survivor" also
2 includes: (1) the surviving dependent of a person who
3 satisfies the definition of "employee" except that such
4 person is made ineligible to participate in the State
5 Universities Retirement System by clause (4) of the first
6 paragraph of Section 15-107 of the Illinois Pension Code; and
7 (2) the surviving dependent of any person formerly employed
8 by the University of Illinois in the Cooperative Extension
9 Service who would be an annuitant except for the fact that
10 such person was made ineligible to participate in the State
11 Universities Retirement System by clause (4) of the first
12 paragraph of Section 15-107 of the Illinois Pension Code.
13 (r) "Medical services" means the services provided
14 within the scope of their licenses by practitioners in all
15 categories licensed under the Medical Practice Act of 1987.
16 (s) "Unit of local government" means any county,
17 municipality, township, school district, special district or
18 other unit, designated as a unit of local government by law,
19 which exercises limited governmental powers or powers in
20 respect to limited governmental subjects, any not-for-profit
21 association with a membership that primarily includes
22 townships and township officials, that has duties that
23 include provision of research service, dissemination of
24 information, and other acts for the purpose of improving
25 township government, and that is funded wholly or partly in
26 accordance with Section 85-15 of the Township Code; any
27 not-for-profit corporation or association, with a membership
28 consisting primarily of municipalities, that operates its own
29 utility system, and provides research, training,
30 dissemination of information, or other acts to promote
31 cooperation between and among municipalities that provide
32 utility services and for the advancement of the goals and
33 purposes of its membership; and the Illinois Association of
34 Park Districts. "Qualified local government" means a unit of
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1 local government approved by the Director and participating
2 in a program created under subsection (i) of Section 10 of
3 this Act.
4 (t) "Qualified rehabilitation facility" means any
5 not-for-profit organization that is accredited by the
6 Commission on Accreditation of Rehabilitation Facilities or
7 certified by the Department of Human Services (as successor
8 to the Department of Mental Health and Developmental
9 Disabilities) to provide services to persons with
10 disabilities and which receives funds from the State of
11 Illinois for providing those services, approved by the
12 Director and participating in a program created under
13 subsection (j) of Section 10 of this Act.
14 (u) "Qualified domestic violence shelter or service"
15 means any Illinois domestic violence shelter or service and
16 its administrative offices funded by the Department of Human
17 Services (as successor to the Illinois Department of Public
18 Aid), approved by the Director and participating in a program
19 created under subsection (k) of Section 10.
20 (v) "TRS benefit recipient" means a person who:
21 (1) is not a "member" as defined in this Section;
22 and
23 (2) is receiving a monthly benefit or retirement
24 annuity under Article 16 of the Illinois Pension Code;
25 and
26 (3) either (i) has at least 8 years of creditable
27 service under Article 16 of the Illinois Pension Code, or
28 (ii) was enrolled in the health insurance program offered
29 under that Article on January 1, 1996, or (iii) is the
30 survivor of a benefit recipient who had at least 8 years
31 of creditable service under Article 16 of the Illinois
32 Pension Code or was enrolled in the health insurance
33 program offered under that Article on the effective date
34 of this amendatory Act of 1995, or (iv) is a recipient or
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1 survivor of a recipient of a disability benefit under
2 Article 16 of the Illinois Pension Code.
3 (w) "TRS dependent beneficiary" means a person who:
4 (1) is not a "member" or "dependent" as defined in
5 this Section; and
6 (2) is a TRS benefit recipient's: (A) spouse, (B)
7 dependent parent who is receiving at least half of his or
8 her support from the TRS benefit recipient, or (C)
9 unmarried natural or adopted child who is (i) under age
10 19, or (ii) enrolled as a full-time student in an
11 accredited school, financially dependent upon the TRS
12 benefit recipient, eligible as a dependent for Illinois
13 State income tax purposes, and either is under age 23 24
14 or was, on January 1, 1996, participating as a dependent
15 beneficiary in the health insurance program offered under
16 Article 16 of the Illinois Pension Code, or (iii) age 19
17 or over who is mentally or physically handicapped as
18 defined in the Illinois Insurance Code.
19 (x) "Military leave with pay and benefits" refers to
20 individuals in basic training for reserves, special/advanced
21 training, annual training, emergency call up, or activation
22 by the President of the United States with approved pay and
23 benefits.
24 (y) "Military leave without pay and benefits" refers to
25 individuals who enlist for active duty in a regular component
26 of the U.S. Armed Forces or other duty not specified or
27 authorized under military leave with pay and benefits.
28 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
29 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
30 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-507,
31 eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)
32 (5 ILCS 375/6.6)
33 Sec. 6.6. Contributions to the Teacher Health Insurance
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1 Security Fund.
2 (a) Beginning July 1, 1995, all active contributors of
3 the Teachers' Retirement System (established under Article 16
4 of the Illinois Pension Code) who are not employees of a
5 department as defined in Section 3 of this Act shall make
6 contributions toward the cost of annuitant and survivor
7 health benefits at the rate of 0.5% of salary.
8 These contributions shall be deducted by the employer and
9 paid to the System as service agent for the Department of
10 Central Management Services. The System may use the same
11 processes for collecting the contributions required by this
12 subsection that it uses to collect contributions received
13 from school districts and other covered employers under
14 Sections 16-154 and 16-155 of the Illinois Pension Code. An
15 employer may agree to pick up or pay the contributions
16 required under this subsection on behalf of the teacher; such
17 contributions shall be deemed to have been paid by the
18 teacher.
19 A person required to make contributions under this
20 subsection (a) who purchases optional service credit under
21 Article 16 of the Illinois Pension Code for a period services
22 actually performed after June 30, 1995 must also make a
23 contribution under this subsection for that optional credit,
24 at the applicable rate of 0.5% of the salary used in
25 computing the optional service credit, based on the required
26 employee contributions for that optional service credit, plus
27 the interest on this those employee contribution
28 contributions. This contribution shall be collected by the
29 System as service agent for the Department of Central
30 Management Services. at the time of receiving The
31 contribution required under this subsection for the optional
32 service credit must be paid in full before any annuity based
33 on that credit begins.
34 (b) The Teachers' Retirement System shall promptly
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1 deposit all moneys collected under subsection (a) of this
2 Section into the Teacher Health Insurance Security Fund
3 created in Section 6.5 of this Act. The moneys collected
4 under this Section shall be used only for the purposes
5 authorized in Section 6.5 of this Act and shall not be
6 considered to be assets of the Teachers' Retirement System.
7 Contributions made under this Section are not transferable to
8 other pension funds or retirement systems and are not
9 refundable upon termination of service.
10 (c) On or before November 15 of each year, the Board of
11 Trustees of the Teachers' Retirement System shall certify to
12 the Governor, the Director of Central Management Services,
13 and the State Comptroller its estimate of the total amount of
14 contributions to be paid under subsection (a) of this Section
15 6.6 for the next fiscal year. The certification shall
16 include a detailed explanation of the methods and information
17 that the Board relied upon in preparing its estimate. As
18 soon as possible after the effective date of this Section,
19 the Board shall submit its estimate for fiscal year 1996.
20 (d) Beginning in fiscal year 1996, on the first day of
21 each month, or as soon thereafter as may be practical, the
22 State Treasurer and the State Comptroller shall transfer from
23 the General Revenue Fund to the Teacher Health Insurance
24 Security Fund 1/12 of the annual amount appropriated for that
25 fiscal year to the State Comptroller for deposit into the
26 Teacher Health Insurance Security Fund under Section 1.3 of
27 the State Pension Funds Continuing Appropriation Act.
28 (e) Except where otherwise specified in this Section,
29 the definitions that apply to Article 16 of the Illinois
30 Pension Code apply to this Section.
31 (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.)
32 Section 15. The Illinois Income Tax Act is amended by
33 changing Section 804 as follows:
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1 (35 ILCS 5/804) (from Ch. 120, par. 8-804)
2 Sec. 804. Failure to Pay Estimated Tax.
3 (a) In general. In case of any underpayment of estimated
4 tax by a taxpayer, except as provided in subsection (d) or
5 (e), the taxpayer shall be liable to a penalty in an amount
6 determined at the rate prescribed by Section 3-3 of the
7 Uniform Penalty and Interest Act upon the amount of the
8 underpayment (determined under subsection (b)) for each
9 required installment.
10 (b) Amount of underpayment. For purposes of subsection
11 (a), the amount of the underpayment shall be the excess of:
12 (1) the amount of the installment which would be
13 required to be paid under subsection (c), over
14 (2) the amount, if any, of the installment paid on
15 or before the last date prescribed for payment.
16 (c) Amount of Required Installments.
17 (1) Amount.
18 (A) In General. Except as provided in
19 paragraph (2), the amount of any required
20 installment shall be 25% of the required annual
21 payment.
22 (B) Required Annual Payment. For purposes of
23 subparagraph (A), the term "required annual payment"
24 means the lesser of
25 (i) 90% of the tax shown on the return
26 for the taxable year, or if no return is filed,
27 90% of the tax for such year, or
28 (ii) 100% of the tax shown on the return
29 of the taxpayer for the preceding taxable year
30 if a return showing a liability for tax was
31 filed by the taxpayer for the preceding taxable
32 year and such preceding year was a taxable year
33 of 12 months.
34 (2) Lower Required Installment where Annualized
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1 Income Installment is Less Than Amount Determined Under
2 Paragraph (1).
3 (A) In General. In the case of any required
4 installment if a taxpayer establishes that the
5 annualized income installment is less than the
6 amount determined under paragraph (1),
7 (i) the amount of such required
8 installment shall be the annualized income
9 installment, and
10 (ii) any reduction in a required
11 installment resulting from the application of
12 this subparagraph shall be recaptured by
13 increasing the amount of the next required
14 installment determined under paragraph (1) by
15 the amount of such reduction, and by increasing
16 subsequent required installments to the extent
17 that the reduction has not previously been
18 recaptured under this clause.
19 (B) Determination of Annualized Income
20 Installment. In the case of any required
21 installment, the annualized income installment is
22 the excess, if any, of
23 (i) an amount equal to the applicable
24 percentage of the tax for the taxable year
25 computed by placing on an annualized basis the
26 net income for months in the taxable year
27 ending before the due date for the installment,
28 over
29 (ii) the aggregate amount of any prior
30 required installments for the taxable year.
31 (C) Applicable Percentage.
32 In the case of the following The applicable
33 required installments: percentage is:
34 1st ............................... 22.5%
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1 2nd ............................... 45%
2 3rd ............................... 67.5%
3 4th ............................... 90%
4 (D) Annualized Net Income; Individuals. For
5 individuals, net income shall be placed on an
6 annualized basis by:
7 (i) multiplying by 12, or in the case of
8 a taxable year of less than 12 months, by the
9 number of months in the taxable year, the net
10 income computed without regard to the standard
11 exemption for the months in the taxable year
12 ending before the month in which the
13 installment is required to be paid;
14 (ii) dividing the resulting amount by the
15 number of months in the taxable year ending
16 before the month in which such installment date
17 falls; and
18 (iii) deducting from such amount the
19 standard exemption allowable for the taxable
20 year, such standard exemption being determined
21 as of the last date prescribed for payment of
22 the installment.
23 (E) Annualized Net Income; Corporations. For
24 corporations, net income shall be placed on an
25 annualized basis by multiplying by 12 the taxable
26 income
27 (i) for the first 3 months of the taxable
28 year, in the case of the installment required
29 to be paid in the 4th month,
30 (ii) for the first 3 months or for the
31 first 5 months of the taxable year, in the case
32 of the installment required to be paid in the
33 6th month,
34 (iii) for the first 6 months or for the
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1 first 8 months of the taxable year, in the case
2 of the installment required to be paid in the
3 9th month, and
4 (iv) for the first 9 months or for the
5 first 11 months of the taxable year, in the
6 case of the installment required to be paid in
7 the 12th month of the taxable year,
8 then dividing the resulting amount by the number of
9 months in the taxable year (3, 5, 6, 8, 9, or 11 as
10 the case may be).
11 (d) Exceptions. Notwithstanding the provisions of the
12 preceding subsections, the penalty imposed by subsection (a)
13 shall not be imposed if the taxpayer was not required to file
14 an Illinois income tax return for the preceding taxable year,
15 or if the taxpayer has underpaid taxes solely because of the
16 increased rate in effect during the period from July 1, 1989
17 through December 1989, or, for individuals, if the taxpayer
18 had no tax liability for the preceding taxable year and such
19 year was a taxable year of 12 months.
20 (e) The penalty imposed for underpayment of estimated
21 tax by subsection (a) of this Section shall not be imposed to
22 the extent that the Department or his designate determines,
23 pursuant to Section 3-8 of the Uniform Penalty and Interest
24 Act that the penalty should not be imposed.
25 (f) Definition of tax. For purposes of subsections (b)
26 and (c), the term "tax" means the excess of the tax imposed
27 under Article 2 of this Act, over the amounts credited
28 against such tax under Sections 601(b) (3) and (4).
29 (g) Application of Section in case of tax withheld on
30 compensation. For purposes of applying this Section in the
31 case of an individual, tax withheld under Article 7 for the
32 taxable year shall be deemed a payment of estimated tax, and
33 an equal part of such amount shall be deemed paid on each
34 installment date for such taxable year, unless the taxpayer
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1 establishes the dates on which all amounts were actually
2 withheld, in which case the amounts so withheld shall be
3 deemed payments of estimated tax on the dates on which such
4 amounts were actually withheld.
5 (g-5) Amounts withheld under the State Salary and
6 Annuity Withholding Act. An individual who has amounts
7 withheld under paragraph (10) of Section 4 of the State
8 Salary and Annuity Withholding Act may elect to have those
9 amounts treated as payments of estimated tax made on the
10 dates on which those amounts are actually withheld.
11 (i) Short taxable year. The application of this Section
12 to taxable years of less than 12 months shall be in
13 accordance with regulations prescribed by the Department.
14 The changes in this Section made by Public Act 84-127
15 shall apply to taxable years ending on or after January 1,
16 1986.
17 (Source: P.A. 86-678; 86-953; 86-1028; 87-205.)
18 Section 20. The Illinois Pension Code is amended by
19 changing Sections 2-123, 2-126.1, 7-109.3, 7-111, 7-113,
20 7-116, 7-118, 7-132.2, 7-139, 7-145, 7-171, 7-172, 14-103.05,
21 14-104, 14-108, 14-118, 14-119, 14-120, 14-128, 14-130,
22 14-133, 14-133.1, 15-107, 15-131, 15-134, 15-136, 15-141,
23 15-142, 15-145, 15-146, 15-154, 15-157, 15-157.1, 15-158.2,
24 15-165, 15-185, 16-106, 16-140, 16-143, 16-151, 16-152.1,
25 16-154, 16-155, 16-158.1, 16-179, 16-185, 16-187, 17-116.1,
26 18-133.1, 21-103, 21-109, and 21-115 and adding Sections
27 7-199.3, 15-136.4, 16-169.1, 16-181.3, 17-134.1, and 18-112.6
28 as follows:
29 (40 ILCS 5/2-123) (from Ch. 108 1/2, par. 2-123)
30 Sec. 2-123. Refunds.
31 (a) A participant who ceases to be a member, other than
32 an annuitant, shall, upon written request, receive a refund
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1 of his or her total contributions, without interest. The
2 refund shall include the additional contributions for the
3 automatic increase in retirement annuity. By accepting the
4 refund, a participant forfeits all accrued rights and
5 benefits in the System and loses credit for all service.
6 However, if he or she again becomes a member, he or she may
7 resume status as a participant and reestablish any forfeited
8 service credit by paying to the System the full amount
9 refunded, together with interest at 4% per annum from the
10 time the refund is paid to the date the member again becomes
11 a participant.
12 A former member of the General Assembly may reestablish
13 any service credit forfeited by acceptance of a refund by
14 paying to the System on or before February 1, 1993, the full
15 amount refunded, together with interest at 4% per annum from
16 the date of payment of the refund to the date of repayment.
17 When a member or former member owes money to the System,
18 interest at the rate of 4% per annum shall accrue and be
19 payable on such amounts owed beginning on the date of
20 termination of service as a member until the contributions
21 due have been paid in full.
22 (b) A participant who has no eligible survivor upon
23 becoming an annuitant or who terminates service with less
24 than 8 years of service is entitled to a refund of the
25 contributions for a survivor's annuity, without interest. If
26 such person later marries, a survivor's annuity shall not be
27 payable upon his or her death, unless the amount of such
28 refund is repaid to the System, together with interest at the
29 rate of 4% per year from the date of refund to the date of
30 repayment.
31 (c) If at the date of retirement or death of a
32 participant who served as an officer of the General Assembly,
33 the total period of such service is less than 4 years, the
34 additional contributions made by such member on the
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1 additional salary as an officer shall be refunded unless the
2 participant served as an officer for at least 2 years and has
3 contributed the amount he or she would have contributed if he
4 or she had served as an officer for 4 years as provided in
5 Section 2-126.
6 (d) Upon the termination of the last survivor's annuity
7 payable to a survivor of a deceased participant, the excess,
8 if any, of the total contributions made by the participant
9 for retirement and survivor's annuity, without interest, over
10 the total amount of retirement and survivor's annuity
11 payments received by the participant and the participant's
12 survivors shall be refunded upon request:
13 (i) if there was a surviving spouse of the deceased
14 participant who was eligible for a survivor's annuity, to
15 the designated beneficiary of that spouse or, if the
16 designated beneficiary is deceased or there is no
17 designated beneficiary, to that spouse's estate;
18 (ii) if there was no eligible surviving spouse of
19 the deceased participant, to the designated beneficiary
20 of the deceased participant or, if the designated
21 beneficiary is deceased or there is no designated
22 beneficiary, to the deceased participant's estate.
23 Upon death of the last survivor of a participant and his
24 or her spouse, a death benefit shall be payable consisting of
25 the excess, if any, of the contributions made by the
26 participant for retirement and survivor's annuity, without
27 interest, over the total amount of retirement and survivor's
28 annuity payments made by the System.
29 (e) Upon the death of a participant, if a survivor's
30 annuity is not payable under this Article, a beneficiary
31 designated by the participant shall be entitled to a refund
32 of all contributions made by the participant. If the
33 participant has not designated a refund beneficiary, the
34 surviving spouse shall be entitled to the refund of
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1 contributions; if there is no surviving spouse, the
2 contributions shall be refunded to the participant's
3 surviving children, if any, and if no children survive, the
4 refund payment shall be made to the participant's estate.
5 (Source: P.A. 86-273; 87-1265.)
6 (40 ILCS 5/2-126.1) (from Ch. 108 1/2, par. 2-126.1)
7 Sec. 2-126.1. Pickup Pick up of contributions.
8 (a) The State shall pick up the participant
9 contributions required under Section 2-126 for all salary
10 earned after December 31, 1981. The contributions so picked
11 up shall be treated as employer contributions in determining
12 tax treatment under the United States Internal Revenue Code.
13 The State shall pay these participant contributions from the
14 same source of funds which is used in paying salary to the
15 participant. The State may pick up these contributions by a
16 reduction in the cash salary of the participant. If
17 participant contributions are picked up they shall be treated
18 for all purposes of this Article 2 in the same manner as
19 participant contributions that were made prior to the date
20 that the pick up of contributions began.
21 (b) Subject to the requirements of federal law, a
22 participant may elect to have the employer pick up optional
23 contributions that the participant has elected to pay to the
24 System, and the contributions so picked up shall be treated
25 as employer contributions for the purposes of determining
26 federal tax treatment. The employer shall pick up the
27 contributions by a reduction in the cash salary of the
28 participant and shall pay the contributions from the same
29 fund that is used to pay earnings to the participant. 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.
33 (Source: P.A. 83-1440.)
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1 (40 ILCS 5/7-109.3) (from Ch. 108 1/2, par. 7-109.3)
2 Sec. 7-109.3. "Sheriff's Law Enforcement Employees".
3 (a) "Sheriff's law enforcement employee" means:
4 (1) A county sheriff and all deputies, other than
5 special deputies, employed on a full time basis in the
6 office of the sheriff.
7 (2) A person who has elected to participate in this
8 Fund under Section 3-109.1 of this Code, and who is
9 employed by a participating municipality to perform
10 police duties.
11 (3) A law enforcement officer employed on a full
12 time basis by a Forest Preserve District, provided that
13 such officer shall be deemed a "sheriff's law enforcement
14 employee" for the purposes of this Article, and service
15 in that capacity shall be deemed to be service as a
16 sheriff's law enforcement employee, only if the board of
17 commissioners of the District have so elected by adoption
18 of an affirmative resolution. Such election, once made,
19 may not be rescinded.
20 (4) A person not eligible to participate in a fund
21 established under Article 3 of this Code who is employed
22 on a full-time basis by a participating municipality or
23 participating instrumentality to perform police duties at
24 an airport, but only if the governing authority of the
25 employer has approved sheriff's law enforcement employee
26 status for its airport police employees by adoption of an
27 affirmative resolution. Such approval, once given, may
28 not be rescinded.
29 (b) An employee who is a sheriff's law enforcement
30 employee and prior to the time for which he is granted
31 military leave or authorized leave of absence shall receive
32 service credit in that capacity. Sheriff's law enforcement
33 employees shall not be entitled to out of State service
34 credit under Section 7-139.
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1 (Source: P.A. 86-273; 87-850.)
2 (40 ILCS 5/7-111) (from Ch. 108 1/2, par. 7-111)
3 Sec. 7-111. "Prior Service": The period beginning on
4 the day a participating employee first became an employee of
5 a municipality, or of an instrumentality thereof, or of a
6 municipality or instrumentality that was superseded by the
7 employing participating municipality, or of a participating
8 instrumentality, and ending on the effective date of
9 participation of the municipality or participating
10 instrumentality, or upon the latest termination of service
11 prior to such effective date, but excluding (a) the
12 intervening periods during which the employee was separated
13 from the service of the municipality and all
14 instrumentalities thereof, or of the participating
15 instrumentality, or (b) periods during which the employee was
16 employed in a position normally requiring less than 600 hours
17 of service during a year, and or (c) periods during which the
18 employee served by persons beginning participating employment
19 in a position normally requiring performance of duty less
20 than 1000 hours per year, if the with a participating
21 municipality or participating instrumentality adopted, which
22 prior to its effective the date of participation, it is
23 included and subject to this Article adopts a resolution or
24 ordinance excluding persons in such positions from
25 participation.
26 (Source: P.A. 82-459.)
27 (40 ILCS 5/7-113) (from Ch. 108 1/2, par. 7-113)
28 Sec. 7-113. "Creditable Service": All periods of prior
29 service or current service for which credits are granted
30 under the provisions of Section 7-139, including all periods
31 during which a participating employee was an employee of a
32 municipality or instrumentality which was superseded by the
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1 employing participating municipality.
2 (Source: Laws 1967, p. 2091.)
3 (40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
4 Sec. 7-116. "Final rate of earnings":
5 (a) For retirement and survivor annuities, the monthly
6 earnings obtained by dividing the total earnings received by
7 the employee during the period of either (1) the 48
8 consecutive months of service within the last 120 months of
9 service in which his total earnings were the highest, or (2)
10 the employee's (his total period of service,) by the number
11 of months of service in such period.
12 (b) For death benefits, the higher of the rate
13 determined under paragraph (a) of this Section or total
14 earnings received in the last 12 months of service divided by
15 twelve. If the deceased employee has less than 12 months of
16 service, the monthly final rate shall be the monthly rate of
17 pay the employee was receiving when he began service.
18 (c) For disability benefits, the total earnings of a
19 participating employee in the last 12 calendar months of
20 service prior to the date he becomes disabled divided by 12.
21 (d) In computing the final rate of earnings: (1) the
22 earnings rate for all periods of prior service shall be
23 considered equal to the average earnings rate for the last 3
24 calendar years of prior service for which creditable service
25 is received under Section 7-139 most immediately preceding
26 the effective date, or, if there is less than 3 years of
27 creditable prior service, the average for the total prior
28 service period for which creditable service is received under
29 Section 7-139; (2) for out of state service and authorized
30 leave, the earnings rate shall be the rate upon which service
31 credits are granted; (3) periods of military leave shall not
32 be considered; (4) the earnings rate for all periods of
33 disability shall be considered equal to the rate of earnings
SB665 Enrolled -37- LRB9000602EGfg
1 upon which the employee's disability benefits are computed
2 for such periods; (5) the earnings to be considered for each
3 of the final three months of the final earnings period shall
4 not exceed 125% of the highest earnings of any other month in
5 the final earnings period; and (6) the annual amount of final
6 rate of earnings shall be the monthly amount multiplied by
7 the number of months of service normally required by the
8 position in a year.
9 (Source: P.A. 78-255.)
10 (40 ILCS 5/7-118) (from Ch. 108 1/2, par. 7-118)
11 Sec. 7-118. "Beneficiary":
12 (a) The surviving spouse of an employee or of an
13 employee annuitant, or if no surviving spouse survives, the
14 person or persons designated by a participating employee or
15 employee annuitant, or if no person so designated survives,
16 or if no designation is on file, the estate of the employee
17 or employee annuitant. The person or persons designated by a
18 beneficiary annuitant, or if no person designated survives,
19 or if no designation is on file, the estate of the
20 beneficiary annuitant. The estate of a surviving spouse
21 annuitant where the employee or employee annuitant filed no
22 designation, or no person designated survives at the death of
23 a surviving spouse annuitant. Designations of beneficiaries
24 shall be in writing on forms prescribed by the board and
25 effective upon filing in the fund offices. The designation
26 forms shall provide for contingent beneficiaries. Divorce,
27 dissolution or annulment of marriage revokes the designation
28 of an employee's former spouse as a beneficiary on a
29 designation executed before entry of judgment for divorce,
30 dissolution or annulment of marriage.
31 (b) Notwithstanding the foregoing, an employee, former
32 employee who has not yet received a retirement annuity or
33 separation benefit, or employee annuitant may elect to name
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1 any person, trust or charity to be the primary beneficiary of
2 any death benefit payable by reason of his death. Such
3 election shall state specifically whether it is his intention
4 to exclude the spouse, shall be in writing, and may be
5 revoked at any time. Such election or revocation shall take
6 effect upon being filed in the fund offices.
7 (c) If a surviving spouse annuity is payable to a former
8 spouse upon the death of an employee annuitant, the former
9 spouse, unless designated by the employee annuitant after
10 dissolution of the marriage, shall not be the beneficiary for
11 the purposes of the $3,000 death benefit payable under
12 subparagraph 6 of Section 7-164. This benefit shall be paid
13 to the designated beneficiary of the employee annuitant or,
14 if there is no designation, then to the estate of the
15 employee annuitant.
16 (Source: P.A. 89-136, eff. 7-14-95.)
17 (40 ILCS 5/7-132.2) (from Ch. 108 1/2, par. 7-132.2)
18 Sec. 7-132.2. Regional office of education Educational
19 Service Regions.
20 (a) A regional office of education serving 2 Educational
21 Service Regions comprised of two or more counties, except
22 those serving including a county of 1,000,000 inhabitants or
23 more, formed pursuant to Article 3A of the School Code shall
24 be included within and be subject to this Article, effective
25 as of the effective date of consolidation. For the purpose
26 of this Article, a regional office of education serving 2 an
27 Educational Service Region comprised of two or more counties
28 shall be considered a participating instrumentality but the
29 requirements of Sections 7-106 and 7-132 shall not apply to
30 it. Each county served by a regional office of education
31 that serves 2 in an Educational Service Region comprised of
32 two or more counties shall pay its proportional cost of the
33 office's region's municipality contributions. This cost
SB665 Enrolled -39- LRB9000602EGfg
1 shall be included in the budget prepared under and
2 apportioned in the manner provided by Section 3A-7 of the
3 School Code. Each county may include the cost for its share
4 of the municipality contributions required for the regional
5 office of education region in its appropriation and tax levy
6 under Section 7-171 of this Article.
7 (b) At the request of the county, the Board may
8 designate any participating regional office of education
9 Educational Service Region to be a separate reporting entity
10 distinct from the county.
11 (Source: P.A. 87-740.)
12 (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
13 Sec. 7-139. Credits and creditable service to employees.
14 (a) Each participating employee shall be granted credits
15 and creditable service, for purposes of determining the
16 amount of any annuity or benefit to which he or a beneficiary
17 is entitled, as follows:
18 1. For prior service: Each participating employee who is
19 an employee of a participating municipality or participating
20 instrumentality on the effective date shall be granted
21 creditable service, but no credits under paragraph 2 of this
22 subsection (a), for periods his entire period of prior
23 service for which credit has not been received under any
24 other pension fund or retirement system established under
25 this Code, as follows:.
26 If the effective date of participation for the
27 participating municipality or participating instrumentality
28 is on or before January 1, 1998, creditable service shall be
29 granted for the entire period of prior service with that
30 employer without any employee contribution.
31 If the effective date of participation for the
32 participating municipality or participating instrumentality
33 is after January 1, 1998, creditable service shall be granted
SB665 Enrolled -40- LRB9000602EGfg
1 for the last 20% of the period of prior service with that
2 employer, but no more than 5 years, without any employee
3 contribution. A participating employee may establish
4 creditable service for the remainder of the period of prior
5 service with that employer by making an application in
6 writing, accompanied by payment of an employee contribution
7 in an amount determined by the Fund, based on the employee
8 contribution rates in effect at the time of application for
9 the creditable service and the employee's salary rate on the
10 effective date of participation for that employer, plus
11 interest at the effective rate from the date of the prior
12 service to the date of payment. Application for this
13 creditable service may be made at any time while the employee
14 is still in service.
15 Any person who has withdrawn from the service of a
16 participating municipality or participating instrumentality
17 prior to the effective date, who reenters the service of the
18 same municipality or participating instrumentality after the
19 effective date and becomes a participating employee is
20 entitled to creditable service for prior service as otherwise
21 provided in this subdivision (a)(1) only if he or she renders
22 2 years of service as a participating employee after the
23 effective date. provided Application for such service must
24 be is made while in a participating status. The salary rate
25 to be used in the calculation of the required employee
26 contribution, if any, shall be the employee's salary rate at
27 the time of first reentering service with the employer after
28 the employer's effective date of participation.
29 2. For current service, each participating employee
30 shall be credited with:
31 a. Additional credits of amounts equal to each
32 payment of additional contributions received from him
33 under Section 7-173, as of the date the corresponding
34 payment of earnings is payable to him.
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1 b. Normal credits of amounts equal to each payment
2 of normal contributions received from him, as of the date
3 the corresponding payment of earnings is payable to him,
4 and normal contributions made for the purpose of
5 establishing out-of-state service credits as permitted
6 under the conditions set forth in paragraph 6 of this
7 subsection (a).
8 c. Municipality credits in an amount equal to 1.4
9 times the normal credits, except those established by
10 out-of-state service credits, as of the date of
11 computation of any benefit if these credits would
12 increase the benefit.
13 d. Survivor credits equal to each payment of
14 survivor contributions received from the participating
15 employee as of the date the corresponding payment of
16 earnings is payable, and survivor contributions made for
17 the purpose of establishing out-of-state service credits.
18 3. For periods of temporary and total and permanent
19 disability benefits, each employee receiving disability
20 benefits shall be granted creditable service for the period
21 during which disability benefits are payable. Normal and
22 survivor credits, based upon the rate of earnings applied for
23 disability benefits, shall also be granted if such credits
24 would result in a higher benefit to any such employee or his
25 beneficiary.
26 4. For authorized leave of absence without pay: A
27 participating employee shall be granted credits and
28 creditable service for periods of authorized leave of absence
29 without pay under the following conditions:
30 a. An application for credits and creditable
31 service is shall be submitted to the board while the
32 employee is in a status of active employment, and within
33 2 years after termination of the leave of absence period
34 for which credits and creditable service are sought.
SB665 Enrolled -42- LRB9000602EGfg
1 b. Not more than 12 complete months of creditable
2 service for authorized leave of absence without pay shall
3 be counted for purposes of determining any benefits
4 payable under this Article.
5 c. Credits and creditable service shall be granted
6 for leave of absence only if such leave is approved by
7 the governing body of the municipality, including
8 approval of the estimated cost thereof to the
9 municipality as determined by the fund, and employee
10 contributions, plus interest at the effective rate
11 applicable for each year from the end of the period of
12 leave to date of payment, have been paid to the fund in
13 accordance with Section 7-173. The contributions shall
14 be computed upon the assumption earnings continued during
15 the period of leave at the rate in effect when the leave
16 began.
17 d. Benefits under the provisions of Sections 7-141,
18 7-146, 7-150 and 7-163 shall become payable to employees
19 on authorized leave of absence, or their designated
20 beneficiary, only if such leave of absence is creditable
21 hereunder, and if the employee has at least one year of
22 creditable service other than the service granted for
23 leave of absence. Any employee contributions due may be
24 deducted from any benefits payable.
25 e. No credits or creditable service shall be
26 allowed for leave of absence without pay during any
27 period of prior service.
28 5. For military service: The governing body of a
29 municipality or participating instrumentality may elect to
30 allow creditable service to participating employees who leave
31 their employment to serve in the armed forces of the United
32 States for all periods of such service, provided that the
33 such person returns to active employment within 90 days after
34 completion of full time active duty, but no creditable
SB665 Enrolled -43- LRB9000602EGfg
1 service shall be allowed such person for any period that can
2 be used in the computation of a pension or any other pay or
3 benefit, other than pay for active duty, for service in any
4 branch of the armed forces of the United States. If
5 necessary to the computation of any benefit, the board shall
6 establish municipality credits for participating employees
7 under this paragraph on the assumption that the employee
8 received earnings at the rate received at the time he left
9 the employment to enter the armed forces. A participating
10 employee in the armed forces shall not be considered an
11 employee during such period of service and no additional
12 death and no disability benefits are payable for death or
13 disability during such period.
14 Any participating employee who left his employment with a
15 municipality or participating instrumentality to serve in the
16 armed forces of the United States and who again became a
17 participating employee within 90 days after completion of
18 full time active duty by entering the service of a different
19 municipality or participating instrumentality, which has
20 elected to allow creditable service for periods of military
21 service under the preceding paragraph, shall also be allowed
22 creditable service for his period of military service on the
23 same terms that would apply if he had been employed, before
24 entering military service, by the municipality or
25 instrumentality which employed him after he left the military
26 service and the employer costs arising in relation to such
27 grant of creditable service shall be charged to and paid by
28 that municipality or instrumentality.
29 Notwithstanding the foregoing, any participating employee
30 shall be entitled to creditable service as required by any
31 federal law relating to re-employment rights of persons who
32 served in the United States Armed Services. Such creditable
33 service shall be granted upon payment by the member of an
34 amount equal to the employee contributions which would have
SB665 Enrolled -44- LRB9000602EGfg
1 been required had the employee continued in service at the
2 same rate of earnings during the military leave period, plus
3 interest at the effective rate.
4 5.1. In addition to any creditable service established
5 under paragraph 5 of this subsection (a), creditable service
6 may be granted for up to 24 months of service in the armed
7 forces of the United States.
8 In order to receive creditable service for military
9 service under this paragraph 5.1, a participating employee
10 must (1) apply to the Fund in writing and provide evidence of
11 the military service that is satisfactory to the Board; (2)
12 obtain the written approval of the current employer; and (3)
13 make contributions to the Fund equal to (i) the employee
14 contributions that would have been required had the service
15 been rendered as a member, plus (ii) an amount determined by
16 the board to be equal to the employer's normal cost of the
17 benefits accrued for that military service, plus (iii)
18 interest on items (i) and (ii) from the date of first
19 membership in the Fund to the date of payment. If payment is
20 made during the 6-month period that begins 3 months after the
21 effective date of this amendatory Act of 1997, the required
22 interest shall be at the rate of 2.5% per year, compounded
23 annually; otherwise, the required interest shall be
24 calculated at the regular interest rate.
25 6. For out-of-state service: Creditable service shall be
26 granted for service rendered to an out-of-state local
27 governmental body under the following conditions: The
28 employee had participated and has irrevocably forfeited all
29 rights to benefits in the out-of-state public employees
30 pension system; the governing body of his participating
31 municipality or instrumentality authorizes the employee to
32 establish such service; the employee has 2 years current
33 service with this municipality or participating
34 instrumentality; the employee makes a payment of
SB665 Enrolled -45- LRB9000602EGfg
1 contributions, which shall be computed at 8% (normal) plus 2%
2 (survivor) times length of service purchased times the
3 average rate of earnings for the first 2 years of service
4 with the municipality or participating instrumentality whose
5 governing body authorizes the service established plus
6 interest at the effective rate on the date such credits are
7 established, payable from the date the employee completes the
8 required 2 years of current service to date of payment. In
9 no case shall more than 120 months of creditable service be
10 granted under this provision.
11 7. For retroactive service: Any employee who could have
12 but did not elect to become a participating employee, or who
13 should have been a participant in the Municipal Public
14 Utilities Annuity and Benefit Fund before that fund was
15 superseded, may receive creditable service for the period of
16 service not to exceed 50 months; however, a current or former
17 county board member may establish credit under this paragraph
18 7 for more than 50 months of service as a member of the
19 county board if the excess over 50 months is approved by
20 resolution of the affected county board filed with the Fund
21 before January 1, 1999.
22 Any employee who is a participating employee on or after
23 September 24, 1981 and who was excluded from participation by
24 the age restrictions removed by Public Act 82-596 may receive
25 creditable service for the period, on or after January 1,
26 1979, excluded by the age restriction and, in addition, if
27 the governing body of the participating municipality or
28 participating instrumentality elects to allow creditable
29 service for all employees excluded by the age restriction
30 prior to January 1, 1979, for service during the period prior
31 to that date excluded by the age restriction. Any employee
32 who was excluded from participation by the age restriction
33 removed by Public Act 82-596 and who is not a participating
34 employee on or after September 24, 1981 may receive
SB665 Enrolled -46- LRB9000602EGfg
1 creditable service for service after January 1, 1979.
2 Creditable service under this paragraph shall be granted upon
3 payment of the employee contributions which would have been
4 required had he participated, with interest at the effective
5 rate for each year from the end of the period of service
6 established to date of payment.
7 8. For accumulated unused sick leave: A participating
8 employee who is applying for a retirement annuity shall be
9 entitled to creditable service for that portion of the
10 employee's his accumulated unused sick leave for which
11 payment is not received, as follows:
12 a. Sick leave days shall be limited to those
13 accumulated under a sick leave plan established by a
14 participating municipality or participating
15 instrumentality which is available to all employees or a
16 class of employees.
17 b. Only sick leave days accumulated with a
18 participating municipality or participating
19 instrumentality with which the employee was in service
20 within 60 days of the effective date of his retirement
21 annuity shall be credited; If the employee was in service
22 with more than one employer during this period only the
23 sick leave days with the employer with which the employee
24 has the greatest number of unpaid sick leave days shall
25 be considered.
26 c. The creditable service granted shall be
27 considered solely for the purpose of computing the amount
28 of the retirement annuity and shall not be used to
29 establish any minimum service period required by any
30 provision of the Illinois Pension Code, the effective
31 date of the retirement annuity, or the final rate of
32 earnings.
33 d. The creditable service shall be at the rate of
34 1/20 of a month for each full sick day, provided that no
SB665 Enrolled -47- LRB9000602EGfg
1 more than 12 months may be credited under this
2 subdivision 8.
3 e. Employee contributions shall not be required for
4 creditable service under this subdivision 8.
5 f. Each participating municipality and
6 participating instrumentality with which an employee has
7 service within 60 days of the effective date of his
8 retirement annuity shall certify to the board the number
9 of accumulated unpaid sick leave days credited to the
10 employee at the time of termination of service.
11 9. For service transferred from another system: Credits
12 and creditable service shall be granted for service under
13 Article 3, 4, 5, 14 or 16 of this Act, to any active member
14 of this Fund, and to any inactive member who has been a
15 county sheriff, upon transfer of such credits pursuant to
16 Section 3-110.3, 4-108.3, 5-235, 14-105.6 or 16-131.4, and
17 payment by the member of the amount by which (1) the employer
18 and employee contributions that would have been required if
19 he had participated in this Fund as a sheriff's law
20 enforcement employee during the period for which credit is
21 being transferred, plus interest thereon at the effective
22 rate for each year, compounded annually, from the date of
23 termination of the service for which credit is being
24 transferred to the date of payment, exceeds (2) the amount
25 actually transferred to the Fund. Such transferred service
26 shall be deemed to be service as a sheriff's law enforcement
27 employee for the purposes of Section 7-142.1.
28 (b) Creditable service - amount: 1. One month of
29 creditable service shall be allowed for each month for which
30 a participating employee made contributions as required under
31 Section 7-173, or for which creditable service is otherwise
32 granted hereunder. Not more than 1 month of service shall be
33 credited and counted for 1 calendar month, and not more than
34 1 year of service shall be credited and counted for any
SB665 Enrolled -48- LRB9000602EGfg
1 calendar year. A calendar month means a nominal month
2 beginning on the first day thereof, and a calendar year means
3 a year beginning January 1 and ending December 31.
4 2. A seasonal employee shall be given 12 months of
5 creditable service if he renders the number of months of
6 service normally required by the position in a 12-month
7 period and he remains in service for the entire 12-month
8 period. Otherwise a fractional year of service in the number
9 of months of service rendered shall be credited.
10 3. An intermittent employee shall be given creditable
11 service for only those months in which a contribution is made
12 under Section 7-173.
13 (c) No application for correction of credits or
14 creditable service shall be considered unless the board
15 receives an application for correction while (1) the
16 applicant is a participating employee and in active
17 employment with a participating municipality or
18 instrumentality, or (2) while the applicant is actively
19 participating in a pension fund or retirement system which is
20 a participating system under the Retirement Systems
21 Reciprocal Act. A participating employee or other applicant
22 shall not be entitled to credits or creditable service unless
23 the required employee contributions are made in a lump sum or
24 in installments made in accordance with board rule.
25 (d) Upon the granting of a retirement, surviving spouse
26 or child annuity, a death benefit or a separation benefit, on
27 account of any employee, all individual accumulated credits
28 shall thereupon terminate. Upon the withdrawal of additional
29 contributions, the credits applicable thereto shall thereupon
30 terminate.
31 (Source: P.A. 86-273; 86-1028; 87-740.)
32 (40 ILCS 5/7-145) (from Ch. 108 1/2, par. 7-145)
33 Sec. 7-145. Reversionary annuities.
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1 (a) An employee entitled to a retirement annuity may
2 elect to provide a reversionary annuity for a beneficiary if,
3 at the time such retirement annuity begins:
4 1. Under the provisions of paragraph (a) 1 of Section
5 7-142 he is entitled to an immediate annuity of at least $10
6 per month; and
7 2. His accumulated additional and optional credits are
8 sufficient to provide a reversionary annuity, of at least $10
9 per month, for the beneficiary.
10 (b) An election shall become effective only:
11 1. If a written notice thereof by the employee is
12 received by the board together with his application for
13 retirement annuity; and
14 2. If the amount of the beneficiary's reversionary
15 annuity specified in the notice is not less than $10 nor more
16 than that which can be provided, at the time, by the
17 accumulation of additional and optional credits.
18 (c) The amount of the reversionary annuity shall be that
19 specified in the notice of election.
20 (d) Reversionary annuity shall begin the first day of
21 the month following the month in which the last payment of
22 the employee annuity is payable because of death, provided
23 the beneficiary is alive at such time. If the beneficiary
24 does not survive the annuitant, no reversionary annuity shall
25 be payable, but only the death benefit as provided in
26 Sections 7-163 and 7-164.
27 (e) No reversionary annuity shall be awarded to be
28 effective on or after January 1, 1986, but reversionary
29 annuities granted prior to that date shall continue to be
30 paid.
31 (Source: P.A. 84-812.)
32 (40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
33 Sec. 7-171. Finance; taxes.
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1 (a) Each municipality other than a school district shall
2 appropriate an amount sufficient to provide for the current
3 municipality contributions required by Section 7-172 of this
4 Article, for the fiscal year for which the appropriation is
5 made and all amounts due for municipal contributions for
6 previous years. Those municipalities which have been assessed
7 an annual amount to amortize its unfunded obligation, as
8 provided in subparagraph 5 of paragraph (a) of Section 7-172
9 of this Article, shall include in the appropriation an amount
10 sufficient to pay the amount assessed. The appropriation
11 shall be based upon an estimate of assets available for
12 municipality contributions and liabilities therefor for the
13 fiscal year for which appropriations are to be made,
14 including funds available from levies for this purpose in
15 prior years.
16 (b) For the purpose of providing monies for municipality
17 contributions, beginning for the year in which a municipality
18 is included in this fund:
19 (1) A municipality other than a school district may
20 levy a tax which shall not exceed the amount appropriated
21 for municipality contributions.
22 (2) A school district may levy a tax in an amount
23 reasonably calculated at the time of the levy to provide
24 for the municipality contributions required under Section
25 7-172 of this Article for the fiscal years for which
26 revenues from the levy will be received and all amounts
27 due for municipal contributions for previous years. Any
28 levy adopted before the effective date of this amendatory
29 Act of 1995 by a school district shall be considered
30 valid and authorized to the extent that the amount was
31 reasonably calculated at the time of the levy to provide
32 for the municipality contributions required under Section
33 7-172 for the fiscal years for which revenues from the
34 levy will be received and all amounts due for municipal
SB665 Enrolled -51- LRB9000602EGfg
1 contributions for previous years. In no event shall a
2 budget adopted by a school district limit a levy of that
3 school district adopted under this Section.
4 (c) Any county which is served by a regional office of
5 education that serves 2 a part of an educational service
6 region comprised of two or more counties formed under Section
7 3A of the School Code may include in its appropriation an
8 amount sufficient to provide its proportionate share of the
9 municipality contributions for that regional office of
10 education of the region. The tax levy authorized by this
11 Section may include an amount necessary to provide monies for
12 this contribution.
13 (d) Any county that is a part of a multiple-county
14 health department or consolidated health department which is
15 formed under "An Act in relation to the establishment and
16 maintenance of county and multiple-county public health
17 departments", approved July 9, 1943, as amended, and which is
18 a participating instrumentality may include in the county's
19 appropriation an amount sufficient to provide its
20 proportionate share of municipality contributions of the
21 department. The tax levy authorized by this Section may
22 include the amount necessary to provide monies for this
23 contribution.
24 (e) Such tax shall be levied and collected in like
25 manner, with the general taxes of the municipality and shall
26 be in addition to all other taxes which the municipality is
27 now or may hereafter be authorized to levy upon all taxable
28 property therein, and shall be exclusive of and in addition
29 to the amount of tax levied for general purposes under
30 Section 8-3-1 of the "Illinois Municipal Code", approved May
31 29, 1961, as amended, or under any other law or laws which
32 may limit the amount of tax which the municipality may levy
33 for general purposes. The tax may be levied by the governing
34 body of the municipality without being authorized as being
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1 additional to all other taxes by a vote of the people of the
2 municipality.
3 (f) The county clerk of the county in which any such
4 municipality is located, in reducing tax levies shall not
5 consider any such tax as a part of the general tax levy for
6 municipality purposes, and shall not include the same in the
7 limitation of any other tax rate which may be extended.
8 (g) The amount of the tax to be levied in any year
9 shall, within the limits herein prescribed, be determined by
10 the governing body of the respective municipality.
11 (h) The revenue derived from any such tax levy shall be
12 used only for the purposes specified in this Article, and, as
13 collected, shall be paid to the treasurer of the municipality
14 levying the tax. Monies received by a county treasurer for
15 use in making contributions to a regional office of education
16 consolidated educational service region for its municipality
17 contributions shall be held by him for that purpose and paid
18 to the regional office of education region in the same manner
19 as other monies appropriated for the expense of the regional
20 office region.
21 (Source: P.A. 89-329, eff. 8-17-95.)
22 (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
23 Sec. 7-172. Contributions by participating
24 municipalities and participating instrumentalities.
25 (a) Each participating municipality and each
26 participating instrumentality shall make payment to the fund
27 as follows:
28 1. municipality contributions in an amount
29 determined by applying the municipality contribution rate
30 to each payment of earnings paid to each of its
31 participating employees;
32 2. an amount equal to the employee contributions
33 provided by paragraphs (a) and (b) of Section 7-173,
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1 whether or not the employee contributions are withheld as
2 permitted by that Section;
3 3. all accounts receivable, together with interest
4 charged thereon, as provided in Section 7-209;
5 4. if it has no participating employees with
6 current earnings, an amount payable which, over a period
7 of 20 years beginning with the year following an award of
8 benefit, will amortize, at the effective rate for that
9 year, any negative balance in its municipality reserve
10 resulting from the award. This amount when established
11 will be payable as a separate contribution whether or not
12 it later has participating employees.
13 (b) A separate municipality contribution rate shall be
14 determined for each calendar year for all participating
15 municipalities together with all instrumentalities thereof.
16 The municipality contribution rate shall be determined for
17 participating instrumentalities as if they were participating
18 municipalities. The municipality contribution rate shall be
19 the sum of the following percentages:
20 1. The percentage of earnings of all the
21 participating employees of all participating
22 municipalities and participating instrumentalities which,
23 if paid over the entire period of their service, will be
24 sufficient when combined with all employee contributions
25 available for the payment of benefits, to provide all
26 annuities for participating employees, and the $3,000
27 death benefit payable under Sections 7-158 and 7-164,
28 such percentage to be known as the normal cost rate.
29 2. The percentage of earnings of the participating
30 employees of each participating municipality and
31 participating instrumentalities necessary to adjust for
32 the difference between the present value of all benefits,
33 excluding temporary and total and permanent disability
34 and death benefits, to be provided for its participating
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1 employees and the sum of its accumulated municipality
2 contributions and the accumulated employee contributions
3 and the present value of expected future employee and
4 municipality contributions pursuant to subparagraph 1 of
5 this paragraph (b). This adjustment shall be spread over
6 the remainder of the period of 40 years from the first of
7 the year following the date of determination.
8 3. The percentage of earnings of the participating
9 employees of all municipalities and participating
10 instrumentalities necessary to provide the present value
11 of all temporary and total and permanent disability
12 benefits granted during the most recent year for which
13 information is available.
14 4. The percentage of earnings of the participating
15 employees of all participating municipalities and
16 participating instrumentalities necessary to provide the
17 present value of the net single sum death benefits
18 expected to become payable from the reserve established
19 under Section 7-206 during the year for which this rate
20 is fixed.
21 5. The percentage of earnings necessary to meet any
22 deficiency arising in the Terminated Municipality
23 Reserve.
24 (c) A separate municipality contribution rate shall be
25 computed for each participating municipality or participating
26 instrumentality for its sheriff's law enforcement employees.
27 A separate municipality contribution rate shall be
28 computed for the sheriff's law enforcement employees of each
29 forest preserve district that elects to have such employees.
30 For the period from January 1, 1986 to December 31, 1986,
31 such rate shall be the forest preserve district's regular
32 rate plus 2%.
33 In the event that the Board determines that there is an
34 actuarial deficiency in the account of any municipality with
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1 respect to a person who has elected to participate in the
2 Fund under Section 3-109.1 of this Code, the Board may adjust
3 the municipality's contribution rate so as to make up that
4 deficiency over such reasonable period of time as the Board
5 may determine.
6 (d) The Board may establish a separate municipality
7 contribution rate for all employees who are program
8 participants employed under the Federal Comprehensive
9 Employment Training Act by all of the participating
10 municipalities and instrumentalities. The Board may also
11 provide that, in lieu of a separate municipality rate for
12 these employees, a portion of the municipality contributions
13 for such program participants shall be refunded or an extra
14 charge assessed so that the amount of municipality
15 contributions retained or received by the fund for all CETA
16 program participants shall be an amount equal to that which
17 would be provided by the separate municipality contribution
18 rate for all such program participants. Refunds shall be
19 made to prime sponsors of programs upon submission of a claim
20 therefor and extra charges shall be assessed to participating
21 municipalities and instrumentalities. In establishing the
22 municipality contribution rate as provided in paragraph (b)
23 of this Section, the use of a separate municipality
24 contribution rate for program participants or the refund of a
25 portion of the municipality contributions, as the case may
26 be, may be considered.
27 (e) Computations of municipality contribution rates for
28 the following calendar year shall be made prior to the
29 beginning of each year, from the information available at the
30 time the computations are made, and on the assumption that
31 the employees in each participating municipality or
32 participating instrumentality at such time will continue in
33 service until the end of such calendar year at their
34 respective rates of earnings at such time.
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1 (f) Any municipality which is the recipient of State
2 allocations representing that municipality's contributions
3 for retirement annuity purposes on behalf of its employees as
4 provided in Section 12-21.16 of the Illinois Public Aid Code
5 shall pay the allocations so received to the Board for such
6 purpose. Estimates of State allocations to be received
7 during any taxable year shall be considered in the
8 determination of the municipality's tax rate for that year
9 under Section 7-171. If a special tax is levied under
10 Section 7-171, none of the proceeds may be used to reimburse
11 the municipality for the amount of State allocations received
12 and paid to the Board. Any multiple-county or consolidated
13 health department which receives contributions from a county
14 under Section 11.2 of "An Act in relation to establishment
15 and maintenance of county and multiple-county health
16 departments", approved July 9, 1943, as amended, or
17 distributions under Section 3 of the Department of Public
18 Health Act, shall use these only for municipality
19 contributions by the health department.
20 (g) Municipality contributions for the several purposes
21 specified shall, for township treasurers and employees in the
22 offices of the township treasurers who meet the qualifying
23 conditions for coverage hereunder, be allocated among the
24 several school districts and parts of school districts
25 serviced by such treasurers and employees in the proportion
26 which the amount of school funds of each district or part of
27 a district handled by the treasurer bears to the total amount
28 of all school funds handled by the treasurer.
29 From the funds subject to allocation among districts and
30 parts of districts pursuant to the School Code, the trustees
31 shall withhold the proportionate share of the liability for
32 municipality contributions imposed upon such districts by
33 this Section, in respect to such township treasurers and
34 employees and remit the same to the Board.
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1 The municipality contribution rate for an educational
2 service center shall initially be the same rate for each year
3 as the regional office of education consolidated educational
4 service region or school district which serves as its
5 administrative agent. When actuarial data become available,
6 a separate rate shall be established as provided in
7 subparagraph (i) of this Section.
8 The municipality contribution rate for a public agency,
9 other than a vocational education cooperative, formed under
10 the Intergovernmental Cooperation Act shall initially be the
11 average rate for the municipalities which are parties to the
12 intergovernmental agreement. When actuarial data become
13 available, a separate rate shall be established as provided
14 in subparagraph (i) of this Section.
15 (h) Each participating municipality and participating
16 instrumentality shall make the contributions in the amounts
17 provided in this Section in the manner prescribed from time
18 to time by the Board and all such contributions shall be
19 obligations of the respective participating municipalities
20 and participating instrumentalities to this fund. The
21 failure to deduct any employee contributions shall not
22 relieve the participating municipality or participating
23 instrumentality of its obligation to this fund. Delinquent
24 payments of contributions due under this Section may, with
25 interest, be recovered by civil action against the
26 participating municipalities or participating
27 instrumentalities. Municipality contributions, other than
28 the amount necessary for employee contributions and Social
29 Security contributions, for periods of service by employees
30 from whose earnings no deductions were made for employee
31 contributions to the fund, may be charged to the municipality
32 reserve for the municipality or participating
33 instrumentality.
34 (i) Contributions by participating instrumentalities
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1 shall be determined as provided herein except that the
2 percentage derived under subparagraph 2 of paragraph (b) of
3 this Section, and the amount payable under subparagraph 5 of
4 paragraph (a) of this Section, shall be based on an
5 amortization period of 10 years.
6 (Source: P.A. 86-273; 87-850.)
7 (40 ILCS 5/7-199.3 new)
8 Sec. 7-199.3. To establish and administer deferred
9 compensation and tax-deferred annuity programs for units of
10 local government.
11 The Board may establish and administer deferred
12 compensation, tax deferred annuity, and similar tax-savings
13 programs for employees of units of local government, which
14 shall be known as the "IMRF-Plus" program. The program shall
15 provide for the Board to review proposed investment offerings
16 and shall require that only investments determined to be
17 acceptable by the Board may be used for investing
18 compensation contributed to the program.
19 The program shall include appropriate provisions
20 pertaining to its day to day operation, including methods of
21 electing to contribute income, methods of changing the amount
22 of income contributed, methods of selecting from among
23 investment options available under the program, and any other
24 provisions that the Board may deem appropriate.
25 The program shall provide for the preparation of
26 pamphlets describing the program and outlining the options
27 and opportunities available to local government employees
28 under the program. These pamphlets shall be distributed from
29 time to time to all eligible employees.
30 The program established under this Section shall not be
31 implemented or amended until the Board is satisfied that
32 compensation contributed under the program is not subject to
33 income tax for the year in which it is earned and that the
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1 taxation of such compensation will be deferred until the time
2 of its distribution to the employee.
3 The program shall also provide for the recovery of the
4 expenses of its administration by charging those expenses
5 against the earnings from investments, by charging fees
6 equitably prorated among the participating local government
7 employees, or by some other appropriate and equitable method
8 determined by the Board. Different methods for recovery of
9 administrative expenses may be provided in relation to
10 different types of investment programs, and the Board may
11 provide for the allocation of administration expenses among
12 varying types of programs for this purpose.
13 The Board shall review and oversee the administration of
14 the program.
15 This Section does not limit the power or authority of any
16 unit of local government, school district, or institution
17 supported in whole or in part by public funds to establish
18 and administer any other deferred compensation plans or
19 tax-deferred annuity programs that may be authorized by law.
20 (40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
21 Sec. 14-103.05. Employee. Any person employed by a
22 Department who receives salary for personal services rendered
23 to the Department on a warrant issued pursuant to a payroll
24 voucher certified by a Department and drawn by the State
25 Comptroller upon the State Treasurer, including an elected
26 official described in subparagraph (d) of Section 14-104,
27 shall become an employee for purpose of membership in the
28 Retirement System on the first day of such employment.
29 A person entering service on or after January 1, 1972 and
30 prior to January 1, 1984 shall become a member as a condition
31 of employment and shall begin making contributions as of the
32 first day of employment.
33 A person entering service on or after January 1, 1984
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1 shall, upon completion of 6 months of continuous service
2 which is not interrupted by a break of more than 2 months,
3 become a member as a condition of employment. Contributions
4 shall begin the first of the month after completion of the
5 qualifying period.
6 The qualifying period of 6 months of service is not
7 applicable to: (1) a person who has been granted credit for
8 service in a position covered by the State Universities
9 Retirement System, the Teachers' Retirement System of the
10 State of Illinois, the General Assembly Retirement System, or
11 the Judges Retirement System of Illinois unless that service
12 has been forfeited under the laws of those systems; (2) a
13 person entering service on or after July 1, 1991 in a
14 noncovered position; or (3) a person to whom Section
15 14-108.2a or 14-108.2b applies.
16 The term "employee" does not include the following:
17 (1) members of the State Legislature, and persons
18 electing to become members of the General Assembly
19 Retirement System pursuant to Section 2-105;
20 (2) incumbents of offices normally filled by vote
21 of the people;
22 (3) except as otherwise provided in this Section,
23 any person appointed by the Governor with the advice and
24 consent of the Senate unless that person elects to
25 participate in this system;
26 (4) except as provided in Section 14-108.2, any
27 person who is covered or eligible to be covered by the
28 Teachers' Retirement System of the State of Illinois, the
29 State Universities Retirement System, or the Judges
30 Retirement System of Illinois;
31 (5) an employee of a municipality or any other
32 political subdivision of the State;
33 (6) any person who becomes an employee after June
34 30, 1979 as a public service employment program
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1 participant under the Federal Comprehensive Employment
2 and Training Act and whose wages or fringe benefits are
3 paid in whole or in part by funds provided under such
4 Act;
5 (7) enrollees of the Illinois Young Adult
6 Conservation Corps program, administered by the
7 Department of Natural Resources, authorized grantee
8 pursuant to Title VIII of the "Comprehensive Employment
9 and Training Act of 1973", 29 USC 993, as now or
10 hereafter amended;
11 (8) enrollees and temporary staff of programs
12 administered by the Department of Natural Resources under
13 the Youth Conservation Corps Act of 1970;
14 (9) any person who is a member of any professional
15 licensing or disciplinary board created under an Act
16 administered by the Department of Professional Regulation
17 or a successor agency or created or re-created after the
18 effective date of this amendatory Act of 1997, and who
19 receives per diem compensation rather than a salary,
20 notwithstanding that such per diem compensation is paid
21 by warrant issued pursuant to a payroll voucher; such
22 persons have never been included in the membership of
23 this System, and this amendatory Act of 1987 (P.A.
24 84-1472) is not intended to effect any change in the
25 status of such persons;
26 (10) any person who is a member of the Illinois
27 Health Care Cost Containment Council, and receives per
28 diem compensation rather than a salary, notwithstanding
29 that such per diem compensation is paid by warrant issued
30 pursuant to a payroll voucher; such persons have never
31 been included in the membership of this System, and this
32 amendatory Act of 1987 is not intended to effect any
33 change in the status of such persons; or
34 (11) any person who is a member of the Oil and Gas
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1 Board created by Section 1.2 of the Illinois Oil and Gas
2 Act, and receives per diem compensation rather than a
3 salary, notwithstanding that such per diem compensation
4 is paid by warrant issued pursuant to a payroll voucher.
5 (Source: P.A. 88-535; 89-246; eff. 8-4-95; 89-445, eff.
6 2-7-96.)
7 (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
8 Sec. 14-104. Service for which contributions permitted.
9 Contributions provided for in this Section shall cover the
10 period of service granted, and be based upon employee's
11 compensation and contribution rate in effect on the date he
12 last became a member of the System; provided that for all
13 employment prior to January 1, 1969 the contribution rate
14 shall be that in effect for a noncovered employee on the date
15 he last became a member of the System. Contributions
16 permitted under this Section shall include regular interest
17 from the date an employee last became a member of the System
18 to date of payment.
19 These contributions must be paid in full before
20 retirement either in a lump sum or in installment payments in
21 accordance with such rules as may be adopted by the board.
22 (a) Any member may make contributions as required in
23 this Section for any period of service, subsequent to the
24 date of establishment, but prior to the date of membership.
25 (b) Any employee who had been previously excluded from
26 membership because of age at entry and subsequently became
27 eligible may elect to make contributions as required in this
28 Section for the period of service during which he was
29 ineligible.
30 (c) An employee of the Department of Insurance who,
31 after January 1, 1944 but prior to becoming eligible for
32 membership, received salary from funds of insurance companies
33 in the process of rehabilitation, liquidation, conservation
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1 or dissolution, may elect to make contributions as required
2 in this Section for such service.
3 (d) Any employee who rendered service in a State office
4 to which he was elected, or rendered service in the elective
5 office of Clerk of the Appellate Court prior to the date he
6 became a member, may make contributions for such service as
7 required in this Section. Any member who served by
8 appointment of the Governor under the Civil Administrative
9 Code of Illinois and did not participate in this System may
10 make contributions as required in this Section for such
11 service.
12 (e) Any person employed by the United States government
13 or any instrumentality or agency thereof from January 1, 1942
14 through November 15, 1946 as the result of a transfer from
15 State service by executive order of the President of the
16 United States shall be entitled to prior service credit
17 covering the period from January 1, 1942 through December 31,
18 1943 as provided for in this Article and to membership
19 service credit for the period from January 1, 1944 through
20 November 15, 1946 by making the contributions required in
21 this Section. A person so employed on January 1, 1944 but
22 whose employment began after January 1, 1942 may qualify for
23 prior service and membership service credit under the same
24 conditions.
25 (f) An employee of the Department of Labor of the State
26 of Illinois who performed services for and under the
27 supervision of that Department prior to January 1, 1944 but
28 who was compensated for those services directly by federal
29 funds and not by a warrant of the Auditor of Public Accounts
30 paid by the State Treasurer may establish credit for such
31 employment by making the contributions required in this
32 Section. An employee of the Department of Agriculture of the
33 State of Illinois, who performed services for and under the
34 supervision of that Department prior to June 1, 1963, but was
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1 compensated for those services directly by federal funds and
2 not paid by a warrant of the Auditor of Public Accounts paid
3 by the State Treasurer, and who did not contribute to any
4 other public employee retirement system for such service, may
5 establish credit for such employment by making the
6 contributions required in this Section.
7 (g) Any employee who executed a waiver of membership
8 within 60 days prior to January 1, 1944 may, at any time
9 while in the service of a department, file with the board a
10 rescission of such waiver. Upon making the contributions
11 required by this Section, the member shall be granted the
12 creditable service that would have been received if the
13 waiver had not been executed.
14 (h) Until May 1, 1990, an employee who was employed on a
15 full-time basis by a regional planning commission for at
16 least 5 continuous years may establish creditable service for
17 such employment by making the contributions required under
18 this Section, provided that any credits earned by the
19 employee in the commission's retirement plan have been
20 terminated.
21 (i) Any person who rendered full time contractual
22 services to the General Assembly as a member of a legislative
23 staff may establish service credit for up to 8 years of such
24 services by making the contributions required under this
25 Section, provided that application therefor is made not later
26 than July 1, 1991.
27 (j) By paying the contributions otherwise required under
28 this Section, plus an amount determined by the Board to be
29 equal to the employer's normal cost of the benefit plus
30 interest, an employee may establish service credit for a
31 period of up to 2 years spent in active military service for
32 which he does not qualify for credit under Section 14-105,
33 provided that (1) he was not dishonorably discharged from
34 such military service, and (2) the amount of service credit
SB665 Enrolled -65- LRB9000602EGfg
1 established by a member under this subsection (j), when added
2 to the amount of military service credit granted to the
3 member under subsection (b) of Section 14-105, shall not
4 exceed 5 years.
5 (k) An employee who was employed on a full-time basis by
6 the Illinois State's Attorneys Association Statewide
7 Appellate Assistance Service LEAA-ILEC grant project prior to
8 the time that project became the State's Attorneys Appellate
9 Service Commission, now the Office of the State's Attorneys
10 Appellate Prosecutor, an agency of State government, may
11 establish creditable service for not more than 60 months
12 service for such employment by making contributions required
13 under this Section.
14 (l) Any person who rendered contractual services to a
15 member of the General Assembly as a worker in the member's
16 district office may establish creditable service for up to 3
17 years of those contractual services by making the
18 contributions required under this Section. The System shall
19 determine a full-time salary equivalent for the purpose of
20 calculating the required contribution. To establish credit
21 under this subsection, the applicant must apply to the System
22 by March 1, 1998.
23 (Source: P.A. 86-273; 86-1488; 87-794; 87-895; 87-1265.)
24 (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
25 (Text of Section before amendment by P.A. 89-507)
26 Sec. 14-108. Amount of retirement annuity. A member who
27 has contributed to the System for at least 12 months, shall
28 be entitled to a prior service annuity for each year of
29 certified prior service credited to him, except that a member
30 shall receive 1/3 of the prior service annuity for each year
31 of service for which contributions have been made and all of
32 such annuity shall be payable after the member has made
33 contributions for a period of 3 years. Proportionate amounts
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1 shall be payable for service of less than a full year after
2 completion of at least 12 months.
3 The total period of service to be considered in
4 establishing the measure of prior service annuity shall
5 include service credited in the Teachers' Retirement System
6 of the State of Illinois and the State Universities
7 Retirement System for which contributions have been made by
8 the member to such systems; provided that at least 1 year of
9 the total period of 3 years prescribed for the allowance of a
10 full measure of prior service annuity shall consist of
11 membership service in this system for which credit has been
12 granted.
13 (a) In the case of a member who is a noncovered
14 employee, the retirement annuity for membership service and
15 prior service shall be 1.67% of final average compensation
16 for each of the first 10 years of service; 1.90% for each of
17 the next 10 years of service; 2.10% for each year of service
18 in excess of 20 but not exceeding 30; and 2.30% for each year
19 in excess of 30. Any service credit established as a covered
20 employee shall be considered in determining the applicable
21 percentages and computed as stated in paragraph (b).
22 (b) In the case of a covered employee, the retirement
23 annuity for membership service and prior service shall be
24 computed as stated in paragraph (a) for all service credit
25 established as a noncovered employee; for service credit
26 established as a covered employee it shall be 1% for each of
27 the first 10 years of service; 1.10% for each of the next 10
28 years of service; 1.30% for each year of service in excess of
29 20 but not exceeding 30; and 1.50% for each year of service
30 in excess of 30. Any service credit established as a
31 noncovered employee shall be considered in determining the
32 applicable percentages.
33 (c) For a member with 30 but less than 35 years of
34 creditable service retiring after attaining age 55 but before
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1 age 60, the retirement annuity shall be reduced by 1/2 of 1%
2 for each month that the member's age is under age 60 at the
3 time of retirement.
4 (d) A retirement annuity shall not exceed 75% of final
5 average compensation, subject to such extension as may result
6 from the application of Section 14-114 or Section 14-115.
7 (e) The retirement annuity payable to any covered
8 employee who is a member of the System and in service on
9 January 1, 1969, or in service thereafter in 1969 as a result
10 of legislation enacted by the Illinois General Assembly
11 transferring the member to State employment from county
12 employment in a county Department of Public Aid in counties
13 of 3,000,000 or more population, under a plan of coordination
14 with the Old Age, Survivors and Disability provisions
15 thereof, if not fully insured for Old Age Insurance payments
16 under the Federal Old Age, Survivors and Disability Insurance
17 provisions at the date of acceptance of a retirement annuity,
18 shall not be less than the amount for which the member would
19 have been eligible if coordination were not applicable.
20 (f) The retirement annuity payable to any covered
21 employee who is a member of the System and in service on
22 January 1, 1969, or in service thereafter in 1969 as a result
23 of the legislation designated in the immediately preceding
24 paragraph, if fully insured for Old Age Insurance payments
25 under the Federal Social Security Act at the date of
26 acceptance of a retirement annuity, shall not be less than an
27 amount which when added to the Primary Insurance Benefit
28 payable to the member upon attainment of age 65 under such
29 Federal Act, will equal the annuity which would otherwise be
30 payable if the coordinated plan of coverage were not
31 applicable.
32 (g) In the case of a member who is a noncovered
33 employee, the retirement annuity for membership service as a
34 full-time security employee of the Department of Corrections
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1 or security employee of the Department of Mental Health and
2 Developmental Disabilities shall be 1.9% of final average
3 compensation for each of the first 10 years of service; 2.1%
4 for each of the next 10 years of service; 2.25% for each year
5 of service in excess of 20 but not exceeding 30; and 2.5% for
6 each year in excess of 30.
7 (h) In the case of a covered employee, the retirement
8 annuity for membership service as a full-time security
9 employee of the Department of Corrections or security
10 employee of the Department of Mental Health and Developmental
11 Disabilities shall be 1.67% of final average compensation for
12 each of the first 10 years of service; 1.90% for each of the
13 next 10 years of service; 2.10% for each year of service in
14 excess of 20 but not exceeding 30; and 2.30% for each year in
15 excess of 30.
16 (i) For the purposes of this Section and Section 14-133
17 of this Act, the term "security employee of the Department of
18 Corrections" and the term "security employee of the
19 Department of Mental Health and Developmental Disabilities"
20 shall have the meanings ascribed to them in subsection (c) of
21 Section 14-110.
22 (j) The retirement annuity computed pursuant to
23 paragraphs (g) or (h) shall be applicable only to those
24 security employees of the Department of Corrections and
25 security employees of the Department of Mental Health and
26 Developmental Disabilities who have at least 20 years of
27 membership service and who are not eligible for the
28 alternative retirement annuity provided under Section 14-110.
29 However, persons transferring to this System under Section
30 14-108.2 who have service credit under Article 16 of this
31 Code may count such service toward establishing their
32 eligibility under the 20-year service requirement of this
33 subsection; but such service may be used only for
34 establishing such eligibility, and not for the purpose of
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1 increasing or calculating any benefit.
2 (k) In the case of a member who has at least 10 years of
3 creditable service as a court reporter, the retirement
4 annuity for service as a court reporter shall be 2.2% of
5 final average compensation for each year of such service as a
6 noncovered employee, and 1.5% of final average compensation
7 for each year of such service as a covered employee.
8 (Source: P.A. 86-272; 86-273; 86-1028.)
9 (Text of Section after amendment by P.A. 89-507)
10 Sec. 14-108. Amount of retirement annuity. A member who
11 has contributed to the System for at least 12 months, shall
12 be entitled to a prior service annuity for each year of
13 certified prior service credited to him, except that a member
14 shall receive 1/3 of the prior service annuity for each year
15 of service for which contributions have been made and all of
16 such annuity shall be payable after the member has made
17 contributions for a period of 3 years. Proportionate amounts
18 shall be payable for service of less than a full year after
19 completion of at least 12 months.
20 The total period of service to be considered in
21 establishing the measure of prior service annuity shall
22 include service credited in the Teachers' Retirement System
23 of the State of Illinois and the State Universities
24 Retirement System for which contributions have been made by
25 the member to such systems; provided that at least 1 year of
26 the total period of 3 years prescribed for the allowance of a
27 full measure of prior service annuity shall consist of
28 membership service in this system for which credit has been
29 granted.
30 (a) In the case of a member who is a noncovered
31 employee, the retirement annuity for membership service and
32 prior service shall be 1.67% of final average compensation
33 for each of the first 10 years of service; 1.90% for each of
34 the next 10 years of service; 2.10% for each year of service
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1 in excess of 20 but not exceeding 30; and 2.30% for each year
2 in excess of 30. Any service credit established as a covered
3 employee shall be considered in determining the applicable
4 percentages and computed as stated in paragraph (b).
5 (b) In the case of a covered employee, the retirement
6 annuity for membership service and prior service shall be
7 computed as stated in paragraph (a) for all service credit
8 established as a noncovered employee; for service credit
9 established as a covered employee it shall be 1% for each of
10 the first 10 years of service; 1.10% for each of the next 10
11 years of service; 1.30% for each year of service in excess of
12 20 but not exceeding 30; and 1.50% for each year of service
13 in excess of 30. Any service credit established as a
14 noncovered employee shall be considered in determining the
15 applicable percentages.
16 (c) For a member with 30 but less than 35 years of
17 creditable service retiring after attaining age 55 but before
18 age 60, the retirement annuity shall be reduced by 1/2 of 1%
19 for each month that the member's age is under age 60 at the
20 time of retirement.
21 (d) A retirement annuity shall not exceed 75% of final
22 average compensation, subject to such extension as may result
23 from the application of Section 14-114 or Section 14-115.
24 (e) The retirement annuity payable to any covered
25 employee who is a member of the System and in service on
26 January 1, 1969, or in service thereafter in 1969 as a result
27 of legislation enacted by the Illinois General Assembly
28 transferring the member to State employment from county
29 employment in a county Department of Public Aid in counties
30 of 3,000,000 or more population, under a plan of coordination
31 with the Old Age, Survivors and Disability provisions
32 thereof, if not fully insured for Old Age Insurance payments
33 under the Federal Old Age, Survivors and Disability Insurance
34 provisions at the date of acceptance of a retirement annuity,
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1 shall not be less than the amount for which the member would
2 have been eligible if coordination were not applicable.
3 (f) The retirement annuity payable to any covered
4 employee who is a member of the System and in service on
5 January 1, 1969, or in service thereafter in 1969 as a result
6 of the legislation designated in the immediately preceding
7 paragraph, if fully insured for Old Age Insurance payments
8 under the Federal Social Security Act at the date of
9 acceptance of a retirement annuity, shall not be less than an
10 amount which when added to the Primary Insurance Benefit
11 payable to the member upon attainment of age 65 under such
12 Federal Act, will equal the annuity which would otherwise be
13 payable if the coordinated plan of coverage were not
14 applicable.
15 (g) In the case of a member who is a noncovered
16 employee, the retirement annuity for membership service as a
17 full-time security employee of the Department of Corrections
18 or security employee of the Department of Human Services
19 shall be 1.9% of final average compensation for each of the
20 first 10 years of service; 2.1% for each of the next 10 years
21 of service; 2.25% for each year of service in excess of 20
22 but not exceeding 30; and 2.5% for each year in excess of 30.
23 (h) In the case of a covered employee, the retirement
24 annuity for membership service as a full-time security
25 employee of the Department of Corrections or security
26 employee of the Department of Human Services shall be 1.67%
27 of final average compensation for each of the first 10 years
28 of service; 1.90% for each of the next 10 years of service;
29 2.10% for each year of service in excess of 20 but not
30 exceeding 30; and 2.30% for each year in excess of 30.
31 (i) For the purposes of this Section and Section 14-133
32 of this Act, the term "security employee of the Department of
33 Corrections" and the term "security employee of the
34 Department of Human Services" shall have the meanings
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1 ascribed to them in subsection (c) of Section 14-110.
2 (j) The retirement annuity computed pursuant to
3 paragraphs (g) or (h) shall be applicable only to those
4 security employees of the Department of Corrections and
5 security employees of the Department of Human Services who
6 have at least 20 years of membership service and who are not
7 eligible for the alternative retirement annuity provided
8 under Section 14-110. However, persons transferring to this
9 System under Section 14-108.2 who have service credit under
10 Article 16 of this Code may count such service toward
11 establishing their eligibility under the 20-year service
12 requirement of this subsection; but such service may be used
13 only for establishing such eligibility, and not for the
14 purpose of increasing or calculating any benefit.
15 (k) In the case of a member who has at least 10 years of
16 creditable service as a court reporter, the retirement
17 annuity for service as a court reporter shall be 2.2% of
18 final average compensation for each year of such service as a
19 noncovered employee, and 1.5% of final average compensation
20 for each year of such service as a covered employee.
21 (Source: P.A. 89-507, eff. 7-1-97.)
22 (40 ILCS 5/14-118) (from Ch. 108 1/2, par. 14-118)
23 Sec. 14-118. Widow's annuity - Conditions for payment.
24 A widow who exercises the right of election to receive an
25 annuity pursuant to this Section is entitled to a lump sum
26 payment of $500 plus a widow's annuity, if
27 (1) she was married to the deceased member for at
28 least 1 year prior to his death or retirement, whichever
29 first occurs, and also on the day of the last termination
30 of his service as a State employee;
31 (2) the deceased member had at least 8 years of
32 creditable service if death occurred while in service, or
33 while on leave of absence from service, or while in
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1 receipt of a nonoccupational disability or occupational
2 disability benefit, or after retirement;
3 (3) she was nominated exclusively to receive the
4 entire death benefit payable under this Article;
5 (4) death of the member occurred after withdrawal,
6 and he had fulfilled the prescribed age and service
7 conditions for establishing a right in a retirement
8 annuity; and
9 (5) she elected to receive the widow's annuity
10 within 6 months from the date of death of the employee,
11 otherwise the survivors annuity if applicable, shall be
12 payable.
13 If a widow's annuity beneficiary becomes entitled to a
14 survivors annuity and a widow's annuity, she shall elect to
15 receive only one of such annuities.
16 The surviving spouse of a person who (1) died on or after
17 January 1, 1985, (2) withdrew from service prior to August 1,
18 1953, (3) was receiving an annuity from the system at the
19 time of death, and (4) meets all other requirements of this
20 Section, shall be entitled to the benefits provided under
21 this Section.
22 A widow's annuity shall be payable beginning on the first
23 of the month following the date of death of the member if the
24 widow has then attained age 50 or, if she is under age 50 on
25 such date, on the first of the month following her attainment
26 of such age; provided, that if an unmarried child or children
27 of the member under age 18 (or under age 22 if a full-time
28 student) also survive him, and the child or children are
29 under the care of the eligible widow, the widow's annuity
30 shall begin on the first of the month following the member's
31 death without regard to the age of the widow. If she is
32 under age 50 at the death of the member and she qualifies for
33 a widow's annuity, she is entitled to receive the lump sum
34 payment immediately upon application, but payment of the
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1 widow's annuity shall be deferred as provided above.
2 The provision for a widow's annuity shall not be
3 construed to affect the payment of a reversionary annuity.
4 If a widow qualifies for more than one widow's annuity, or
5 for a widow's annuity and a survivors annuity, she shall
6 elect to receive only one of such annuities.
7 This Section shall not apply to the widow of any male
8 person who first became a member after July 19, 1961.
9 (Source: P.A. 84-1028.)
10 (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
11 Sec. 14-119. Amount of widow's annuity.
12 (a) The widow's annuity shall be 50% of the amount of
13 retirement annuity payable to the member on the date of death
14 while on retirement if an annuitant, or on the date of his
15 death while in service if an employee, regardless of his age
16 on such date, or on the date of withdrawal if death occurred
17 after termination of service under the conditions prescribed
18 in the preceding Section.
19 (b) If an eligible widow, regardless of age, has in her
20 care any unmarried child or children of the member under age
21 18 (under age 22 if a full-time student), the widow's annuity
22 shall be increased in the amount of 5% of the retirement
23 annuity for each such child, but the combined payments for a
24 widow and children shall not exceed 66 2/3% of the member's
25 earned retirement annuity.
26 The amount of retirement annuity from which the widow's
27 annuity is derived shall be that earned by the member without
28 regard to whether he attained age 60 prior to his withdrawal
29 under the conditions stated or prior to his death.
30 (c) Adopted children shall be considered as children of
31 the member only if the proceedings for adoption were
32 commenced at least 1 year prior to the member's death.
33 Marriage of a child shall render the child ineligible for
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1 further consideration in the increase in the amount of the
2 widow's annuity.
3 Attainment of age 18 (age 22 if a full-time student) of a
4 child shall render a child him ineligible for further
5 consideration in the increase of the widow's annuity, but the
6 annuity to the widow shall be continued thereafter, without
7 regard to her age at that time.
8 (d) A widow's annuity payable on account of any covered
9 employee who shall have been a covered employee for at least
10 18 months shall be reduced by 1/2 of the amount of survivors
11 benefits to which his beneficiaries are eligible under the
12 provisions of the Federal Social Security Act, except that
13 (1) the amount of any widow's annuity payable under this
14 Article shall not be reduced by reason of any increase under
15 that Act which occurs after the offset required by this
16 subsection is first applied to that annuity, and (2) for
17 benefits granted on or after January 1, 1992, the offset
18 under this subsection (d) shall not exceed 50% of the amount
19 of widow's annuity otherwise payable.
20 (e) Upon the death of a recipient of a widow's annuity
21 the excess, if any, of the member's accumulated
22 contributions plus credited interest over all annuity
23 payments to the member and widow, exclusive of the $500 lump
24 sum payment, shall be paid to the named beneficiary of the
25 widow, or if none has been named, to the estate of the widow,
26 provided no reversionary annuity is payable.
27 (f) On January 1, 1981, any recipient of a widow's
28 annuity who was receiving a widow's annuity on or before
29 January 1, 1971, shall have her widow's annuity then being
30 paid increased by 1% for each full year which has elapsed
31 from the date the widow's annuity began. On January 1, 1982,
32 any recipient of a widow's annuity who began receiving a
33 widow's annuity after January 1, 1971, but before January 1,
34 1981, shall have her widow's annuity then being paid
SB665 Enrolled -76- LRB9000602EGfg
1 increased by 1% for each full year which has elapsed from the
2 date the widow's annuity began. On January 1, 1987, any
3 recipient of a widow's annuity who began receiving the
4 widow's annuity on or before January 1, 1977, shall have the
5 monthly widow's annuity increased by $1 for each full year
6 which has elapsed since the date the annuity began.
7 (g) Beginning January 1, 1990, every widow's annuity
8 shall be increased (1) on each January 1 occurring on or
9 after the commencement of the annuity if the deceased member
10 died while receiving a retirement annuity, or (2) in other
11 cases, on each January 1 occurring on or after the first
12 anniversary of the commencement of the annuity, by an amount
13 equal to 3% of the current amount of the annuity, including
14 any previous increases under this Article. Such increases
15 shall apply without regard to whether the deceased member was
16 in service on or after the effective date of Public Act
17 86-1488, but shall not accrue for any period prior to January
18 1, 1990.
19 (Source: P.A. 86-273; 86-1488; 87-794.)
20 (40 ILCS 5/14-120) (from Ch. 108 1/2, par. 14-120)
21 Sec. 14-120. Survivors annuities - Conditions for
22 payments. A survivors annuity is established for all members
23 of the System. Upon the death of any male person who was a
24 member on July 19, 1961, however, his widow may have the
25 option of receiving the widow's annuity provided in this
26 Article, in lieu of the survivors annuity.
27 (a) A survivors annuity beneficiary, as herein defined,
28 is eligible for a survivors annuity if the deceased member
29 had completed at least 1 1/2 years of contributing creditable
30 service if death occurred:
31 (1) while in service;
32 (2) while on an approved or authorized leave of
33 absence from service, not exceeding one year
SB665 Enrolled -77- LRB9000602EGfg
1 continuously; or
2 (3) while in receipt of a non-occupational
3 disability or an occupational disability benefit.
4 (b) If death of the member occurs after withdrawal, the
5 survivors annuity beneficiary is eligible for such annuity
6 only if the member had fulfilled at the date of withdrawal
7 the prescribed service conditions for establishing a right in
8 a retirement annuity.
9 (c) Payment of the survivors annuity shall begin
10 immediately if the beneficiary is 50 years or over, or upon
11 attainment of age 50 if the beneficiary is under that age at
12 the date of the member's death. In the case of survivors of a
13 member whose death occurred between November 1, 1970 and July
14 15, 1971, the payment of the survivors annuity shall begin
15 upon October 1, 1977, if the beneficiary is then 50 years of
16 age or older, or upon the attainment of age 50 if the
17 beneficiary is under that age on October 1, 1977.
18 If an eligible child or children, under the care of the
19 spouse also survive the member, the survivors annuity shall
20 begin immediately without regard to whether the beneficiary
21 has attained age 50.
22 Benefits under this Section shall accrue and be payable
23 for whole calendar months, beginning on the first day of the
24 month after the initiating event occurs and ending on the
25 last day of the month in which the terminating event occurs.
26 (d) A survivor annuity beneficiary means:
27 (1) A spouse of a member or annuitant if the
28 current marriage with member was in effect at least one
29 year at the date of the member's death or at least one
30 year at the date of his or her withdrawal, whichever
31 first occurs.;
32 (2) An unmarried child under age 18 (under age 22
33 if a full-time student) of the member or annuitant; an
34 unmarried stepchild under age 18 (under age 22 if a
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1 full-time student) who has been such for at least one
2 year at the date of the member's death or at least one
3 year at the date of withdrawal, whichever first occurs;
4 an unmarried adopted child under age 18 (under age 22 if
5 a full-time student) if the adoption proceedings were
6 initiated at least one year prior to the death or
7 withdrawal of the member or annuitant, whichever first
8 occurs; and an unmarried child over age 18 if he or she
9 is dependent by reason of a physical or mental
10 disability, so long as the such physical or mental
11 disability continues. For purposes of this subsection
12 sub-section, disability means inability to engage in any
13 substantial gainful activity by reason of any medically
14 determinable physical or mental impairment which can be
15 expected to result in death or which has lasted or can be
16 expected to last for a continuous period of not less than
17 12 months.;
18 (3) A dependent parent of the member or annuitant;
19 a dependent step-parent by a marriage contracted before
20 the member or annuitant attained age 18; or a dependent
21 adopting parent by whom the member or annuitant was
22 adopted before he or she attained age 18.
23 (e) Remarriage before age 55 or death of a spouse;
24 marriage or death of a child; or remarriage before age 55 or
25 death of a parent terminates the survivors annuity payable on
26 account of such beneficiary. Remarriage of a prospective
27 beneficiary prior to the attainment of age 50 disqualifies
28 the beneficiary for the annuity expectancy hereunder.
29 Termination due to a marriage or remarriage shall be
30 permanent regardless of any future changes in marital status.
31 Any person whose survivors annuity was terminated during
32 1978 or 1979 due to remarriage at age 55 or over shall be
33 eligible to apply, not later than July 1, 1990, for a
34 resumption of that annuity, to begin on July 1, 1990.
SB665 Enrolled -79- LRB9000602EGfg
1 (f) The term "dependent" relating to a survivors annuity
2 means a beneficiary of a survivors annuity who was receiving
3 from the member at the date of the member's death at least
4 1/2 of the support for maintenance including board, lodging,
5 medical care and like living costs.
6 (g) If there is no eligible spouse surviving the member,
7 or if a survivors annuity beneficiary includes a spouse who
8 dies or remarries, the annuity is payable to an unmarried
9 child or children. If at the date of death of the member
10 there is no spouse or unmarried child, payments shall be made
11 to a dependent parent or parents. If no eligible survivors
12 annuity beneficiary survives the member, the non-occupational
13 death benefit is payable in the manner provided in this
14 Article.
15 (h) Survivor benefits do not affect any reversionary
16 annuity.
17 (i) If a survivors annuity beneficiary becomes entitled
18 to a widow's annuity or one or more survivors annuities or
19 both such annuities, the beneficiary shall elect to receive
20 only one of such annuities.
21 (j) Contributing creditable service under the State
22 Universities Retirement System and the Teachers Retirement
23 System of the State of Illinois shall be considered in
24 determining whether the member has met the contributing
25 service requirements of this Section.
26 (k) In lieu of the Survivor's Annuity described in this
27 Section, the spouse of the member has the option to select
28 the Nonoccupational Death Benefit described in this Article,
29 provided the spouse is the sole survivor and the sole
30 nominated beneficiary of the member.
31 (l) The changes made to this Section and Sections
32 14-118, 14-119, and 14-128 by this amendatory Act of 1997,
33 relating to benefits for certain unmarried children who are
34 full-time students under age 22, apply without regard to
SB665 Enrolled -80- LRB9000602EGfg
1 whether the deceased member was in service on or after the
2 effective date of this amendatory Act of 1997. These changes
3 do not authorize the repayment of a refund or a re-election
4 of benefits, and any benefit or increase in benefits
5 resulting from these changes is not payable retroactively for
6 any period before the effective date of this amendatory Act
7 of 1997.
8 (Source: P.A. 86-273.)
9 (40 ILCS 5/14-128) (from Ch. 108 1/2, par. 14-128)
10 Sec. 14-128. Occupational death benefit. An
11 occupational death benefit is provided for a member of the
12 System whose death, prior to retirement, is the proximate
13 result of bodily injuries sustained or a hazard undergone
14 while in the performance and within the scope of the member's
15 duties.
16 (a) Conditions for payment.
17 Exclusive of the lump sum payment provided for herein,
18 all annuities under this Section shall accrue and be payable
19 for complete calendar months, beginning on the first day of
20 the month next following the month in which the initiating
21 event occurs and ending on the last day of the month in which
22 the terminating event occurs.
23 The following named survivors of the member may be
24 eligible for an annuity under this Section:
25 (i) The member's spouse.
26 (ii) An unmarried child of the member under age 18
27 (under age 22 if a full-time student); an unmarried
28 stepchild under age 18 (under age 22 if a full-time
29 student) who has been such for at least one year at the
30 date of the member's death; an unmarried adopted child
31 under age 18 (under age 22 if a full-time student) if the
32 adoption proceedings were initiated at least one year
33 prior to the death of the member; and an unmarried child
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1 over age 18 who is dependent by reason of a physical or
2 mental disability, for so long as such physical or mental
3 disability continues. For the purposes of this Section
4 disability means inability to engage in any substantial
5 gainful activity by reason of any medically determinable
6 physical or mental impairment which can be expected to
7 result in death or which has lasted or can be expected to
8 last for a continuous period of not less than 12 months.
9 (iii) If no spouse or eligible children survive: a
10 dependent parent of the member; a dependent step-parent
11 by a marriage contracted before the member attained age
12 18; or a dependent adopting parent by whom the member was
13 adopted before he or she attained age 18.
14 The term "dependent" relating to an Occupational Death
15 Benefit means a survivor of the member who was receiving from
16 the member at the date of the member's death at least 1/2 of
17 the support for maintenance including board, lodging, medical
18 care and like living costs.
19 Payment of the annuity shall continue until the
20 occurrence of the following:
21 (1) remarriage before age 55 or death, in the case
22 of a surviving spouse;
23 (2) attainment of age 18 or termination of
24 disability, death, or marriage, in the case of an
25 eligible child;
26 (3) remarriage before age 55 or death, in the case
27 of a dependent parent.
28 If none of the aforementioned beneficiaries is living at
29 the date of death of the member, no occupational death
30 benefit shall be payable, but the nonoccupational death
31 benefit shall be payable as provided in this Article.
32 (b) Amount of benefit.
33 The member's accumulated contributions plus credited
34 interest shall be payable in a lump sum to such person as the
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1 member has nominated by written direction, duly acknowledged
2 and filed with the Board, or if no such nomination to the
3 estate of the member. When an annuitant is re-employed by a
4 Department, the accumulated contributions plus credited
5 interest payable on the member's account shall, if the member
6 has not previously elected a reversionary annuity, consist of
7 the excess, if any, of the member's total accumulated
8 contributions plus credited interest for all creditable
9 service over the total amount of all retirement annuity
10 payments received by the member prior to death.
11 In addition to the foregoing payment, an annuity is
12 provided for eligible survivors as follows:
13 (1) If the survivor is a spouse only, the annuity
14 shall be 50% of the member's final average compensation.
15 (2) If the spouse has in her care an eligible child
16 or children, the annuity shall be increased by an amount
17 equal to 15% of the final average compensation on account
18 of each such child, subject to a limitation on the
19 combined annuities to a surviving spouse and children of
20 75% of final average compensation.
21 (3) If there is no surviving spouse, or if the
22 surviving spouse dies or remarries while a child remains
23 eligible, then each such child shall be entitled to an
24 annuity of 15% of the deceased member's final average
25 compensation, subject to a limitation of 50% of final
26 average compensation to all such children.
27 (4) If there is no surviving spouse or eligible
28 children, then an annuity shall be payable to the
29 member's dependent parents, equal to 25% of final average
30 compensation to each such beneficiary.
31 If any annuity payable under this Section is less than
32 the corresponding survivors annuity, the beneficiary or
33 beneficiaries of the annuity under this Section may elect to
34 receive the survivors annuity and the Nonoccupational Death
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1 Benefit provided for in this Article in lieu of the annuity
2 provided under this Section.
3 (c) Occupational death claims pending adjudication by
4 the Industrial Commission or a ruling by the agency
5 responsible for determining the liability of the State under
6 the "Workers' Compensation Act" or "Workers' Occupational
7 Diseases Act" shall be payable under the Survivor's Annuity
8 Section of this Article until a ruling or adjudication occurs
9 if the beneficiary or beneficiaries: (1) meet all conditions
10 for payment as prescribed in this Article; and (2) execute an
11 assignment of benefits payable as a result of adjudication by
12 the Industrial Commission or a ruling by the agency
13 responsible for determining the liability of the State under
14 such Acts. The assignment shall be made to the System and
15 shall be for an amount equal to the excess of benefits paid
16 under the Survivor's Annuity Section of this Article over
17 benefits payable as a result of adjudication of the Workers'
18 Compensation claim computed from the date of death of the
19 member.
20 (d) Every occupational death annuity payable under this
21 Section shall be increased on each January 1 occurring on or
22 after (i) January 1, 1990, or (ii) the first anniversary of
23 the commencement of the annuity, whichever occurs later, by
24 an amount equal to 3% of the current amount of the annuity,
25 including any previous increases under this Article, without
26 regard to whether the deceased member was in service on the
27 effective date of this amendatory Act of 1991.
28 (Source: P.A. 86-273; 86-1488.)
29 (40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
30 Sec. 14-130. Refunds; rules.
31 (a) Upon withdrawal a member is entitled to receive,
32 upon written request, a refund of the member's contributions,
33 including credits granted while in receipt of disability
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1 benefits, without credited interest. The board, in its
2 discretion may withhold payment of the refund of a member's
3 contributions for a period not to exceed 1 year after the
4 member has ceased to be an employee.
5 For purposes of this Section, a member will be considered
6 to have withdrawn from service if a change in, or transfer
7 of, his position results in his becoming ineligible for
8 continued membership in this System and eligible for
9 membership in another public retirement system under this
10 Act.
11 (b) A member receiving a refund forfeits and
12 relinquishes all accrued rights in the System, including all
13 accumulated creditable service. If the person again becomes
14 a member of the System and establishes at least 2 years of
15 creditable service, the member may repay the moneys
16 previously refunded. However, a former member may restore
17 credits previously forfeited by acceptance of a refund
18 without returning to service by applying in writing and
19 repaying to the System, by April 1, 1993, the amount of the
20 refund plus regular interest calculated from the date of
21 refund to the date of repayment.
22 The repayment of refunds issued prior to January 1, 1984
23 shall consist of the amount refunded plus 5% interest per
24 annum compounded annually for the period from the date of the
25 refund to the end of the month in which repayment is made.
26 The repayment of refunds issued after January 1, 1984 shall
27 consist of the amount refunded plus regular interest for the
28 period from the date of refund to the end of the month in
29 which repayment is made. However, in the case of a refund
30 that is repaid in a lump sum between January 1, 1991 and July
31 1, 1991, repayment shall consist of the amount refunded plus
32 interest at the rate of 2.5% per annum compounded annually
33 from the date of the refund to the end of the month in which
34 repayment is made.
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1 Upon repayment, the member shall receive credit for the
2 service, member contributions and regular interest that was
3 forfeited by acceptance of the refund as well as regular
4 interest for the period of non-membership. Such repayment
5 shall be made in full before retirement either in a lump sum
6 or in installment payments in accordance with such rules as
7 may be adopted by the board.
8 (b-5) The Board may adopt rules governing the repayment
9 of refunds and establishment of credits in cases involving
10 awards of back pay or reinstatement. The rules may authorize
11 repayment of a refund in installment payments and may waive
12 the payment of interest on refund amounts repaid in full
13 within a specified period.
14 (c) A member who is unmarried on the date of retirement
15 or who does not have an eligible survivors annuity
16 beneficiary at that date is entitled to a refund of
17 contributions for widow's annuity or survivors annuity
18 purposes, or both, as the case may be, without interest.
19 (d) Any member who has service credit in any position
20 for which an alternative retirement annuity is provided and
21 in relation to which an increase in the rate of employee
22 contribution is required, shall be entitled to a refund,
23 without interest, of that part of the member's employee
24 contribution which results from that increase in the employee
25 rate if the member does not qualify for that alternative
26 retirement annuity at the time of retirement.
27 (Source: P.A. 86-1488; 87-1265.)
28 (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
29 (Text of Section before amendment by P.A. 89-507)
30 Sec. 14-133. Contributions on behalf of members.
31 (a) Each participating employee shall make contributions
32 to the System, based on the employee's compensation, as
33 follows:
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1 (1) Covered employees, except as indicated below,
2 3.5% 3 1/2% for retirement annuity, and 0.5% 1/2 of 1%
3 for a widow or survivors annuity;
4 (2) Noncovered employees, except as indicated
5 below, 7% for retirement annuity and 1% for a widow or
6 survivors annuity;
7 (3) Noncovered employees serving in a position in
8 which "eligible creditable service" as defined in Section
9 14-110 may be earned, 8.5% 8 1/2% for retirement annuity
10 and 1% for a widow or survivors annuity;
11 (4) Covered employees serving in a position in
12 which "eligible creditable service" as defined in Section
13 14-110 may be earned, 5% for retirement annuity and 0.5%
14 for a widow or survivors annuity;
15 (5) Each full-time security employee of the
16 Department of Corrections or of the Department of Mental
17 Health and Developmental Disabilities who is a covered
18 employee, 5% for retirement annuity and 0.5% 1/2 of 1%
19 for a widow or survivors annuity;
20 (6) Each full-time security employee of the
21 Department of Corrections or of the Department of Mental
22 Health and Developmental Disabilities who is not a
23 covered employee, 8.5% 8 1/2% for retirement annuity and
24 1% for a widow or survivors annuity.
25 (b) Contributions shall be in the form of a deduction
26 from compensation and shall be made notwithstanding that the
27 compensation paid in cash to the employee shall be reduced
28 thereby below the minimum prescribed by law or regulation.
29 Each member is deemed to consent and agree to the deductions
30 from compensation provided for in this Article, and shall
31 receipt in full for salary or compensation.
32 (Source: P.A. 86-273.)
33 (Text of Section after amendment by P.A. 89-507)
34 Sec. 14-133. Contributions on behalf of members.
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1 (a) Each participating employee shall make contributions
2 to the System, based on the employee's compensation, as
3 follows:
4 (1) Covered employees, except as indicated below,
5 3.5% 3 1/2% for retirement annuity, and 0.5% 1/2 of 1%
6 for a widow or survivors annuity;
7 (2) Noncovered employees, except as indicated
8 below, 7% for retirement annuity and 1% for a widow or
9 survivors annuity;
10 (3) Noncovered employees serving in a position in
11 which "eligible creditable service" as defined in Section
12 14-110 may be earned, 8.5% 8 1/2% for retirement annuity
13 and 1% for a widow or survivors annuity;
14 (4) Covered employees serving in a position in
15 which "eligible creditable service" as defined in Section
16 14-110 may be earned, 5% for retirement annuity and 0.5%
17 for a widow or survivors annuity;
18 (5) Each full-time security employee of the
19 Department of Corrections or of the Department of Human
20 Services who is a covered employee, 5% for retirement
21 annuity and 0.5% 1/2 of 1% for a widow or survivors
22 annuity;
23 (6) Each full-time security employee of the
24 Department of Corrections or of the Department of Human
25 Services who is not a covered employee, 8.5% 8 1/2% for
26 retirement annuity and 1% for a widow or survivors
27 annuity.
28 (b) Contributions shall be in the form of a deduction
29 from compensation and shall be made notwithstanding that the
30 compensation paid in cash to the employee shall be reduced
31 thereby below the minimum prescribed by law or regulation.
32 Each member is deemed to consent and agree to the deductions
33 from compensation provided for in this Article, and shall
34 receipt in full for salary or compensation.
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1 (Source: P.A. 89-507, eff. 7-1-97.)
2 (40 ILCS 5/14-133.1) (from Ch. 108 1/2, par. 14-133.1)
3 Sec. 14-133.1. Pickup of contributions.
4 (a) Each department shall pick up the employee
5 contributions required by Section 14-133 for all compensation
6 earned after December 31, 1981, and the contributions so
7 picked up shall be treated as employer contributions in
8 determining tax treatment under the United States Internal
9 Revenue Code; however, each department shall continue to
10 withhold federal and State income taxes based upon these
11 contributions until the Internal Revenue Service or the
12 federal courts rule that pursuant to Section 414(h) of the
13 United States Internal Revenue Code, these contributions
14 shall not be included as gross income of the employee until
15 such time as they are distributed or made available.
16 The department shall pay these employee contributions
17 from the same fund which is used in paying earnings to the
18 employee. The department may pick up these contributions by
19 a reduction in the cash salary of the employee or by an
20 offset against a future salary increase or by a combination
21 of a reduction in salary and offset against a future salary
22 increase. If employee contributions are picked up they shall
23 be treated for all purposes of this Article 14 in the same
24 manner and to the same extent as employee contributions made
25 prior to the date picked up.
26 (b) Subject to the requirements of federal law, an
27 employee of a department may elect to have the department
28 pick up optional contributions that the employee has elected
29 to pay to the System, and the contributions so picked up
30 shall be treated as employer contributions for the purposes
31 of determining federal tax treatment. The department shall
32 pick up the contributions by a reduction in the cash salary
33 of the employee and shall pay the contributions from the same
SB665 Enrolled -89- LRB9000602EGfg
1 fund that is used to pay earnings to the employee. The
2 election to have optional contributions picked up is
3 irrevocable and the optional contributions may not thereafter
4 be prepaid, by direct payment or otherwise.
5 (Source: P.A. 87-14.)
6 (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
7 Sec. 15-107. Employee.
8 (a) "Employee" means any member of the educational,
9 administrative, secretarial, clerical, mechanical, labor or
10 other staff of an employer whose employment is permanent and
11 continuous or who is employed in a position in which services
12 are expected to be rendered on a continuous basis for at
13 least 4 months or one academic term, whichever is less, who
14 (A) receives payment for personal services on a warrant
15 issued pursuant to a payroll voucher certified by an employer
16 and drawn by the State Comptroller upon the State Treasurer
17 or by an employer upon trust, federal or other funds, or (B)
18 is on a leave of absence without pay. Employment which is
19 irregular, intermittent or temporary shall not be considered
20 continuous for purposes of this paragraph.
21 However, a person is not an "employee" if he or she:
22 (1) is a student enrolled in and regularly
23 attending classes in a college or university which is an
24 employer, and is employed on a temporary basis at less
25 than full time;
26 (2) is currently receiving a retirement annuity or
27 a disability retirement annuity under Section 15-153.2
28 from this System;
29 (3) is on a military leave of absence;
30 (4) is eligible to participate in the Federal Civil
31 Service Retirement System and is currently making
32 contributions to that system based upon earnings paid by
33 an employer;
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1 (5) is on leave of absence without pay for more
2 than 60 days immediately following termination of
3 disability benefits under this Article;
4 (6) is hired after June 30, 1979 as a public
5 service employment program participant under the Federal
6 Comprehensive Employment and Training Act and receives
7 earnings in whole or in part from funds provided under
8 that Act;
9 (7) is employed on or after July 1, 1991 to perform
10 services that are excluded by subdivision (a)(7)(f) or
11 (a)(19) of Section 210 of the federal Social Security Act
12 from the definition of employment given in that Section
13 (42 U.S.C. 410); or
14 (8) participates in an optional program for
15 part-time workers under Section 15-158.1.; or
16 (9) participates in an optional program for
17 employees under Section 15-158.2.
18 (b) Any employer may, by filing a written notice with
19 the board, exclude from the definition of "employee" all
20 persons employed pursuant to a federally funded contract
21 entered into after July 1, 1982 with a federal military
22 department in a program providing training in military
23 courses to federal military personnel on a military site
24 owned by the United States Government, if this exclusion is
25 not prohibited by the federally funded contract or federal
26 laws or rules governing the administration of the contract.
27 (c) Any person appointed by the Governor under the Civil
28 Administrative Code of the State is an employee, if he or she
29 is a participant in this system on the effective date of the
30 appointment.
31 (d) A participant on lay-off status under civil service
32 rules is considered an employee for not more than 120 days
33 from the date of the lay-off.
34 (e) A participant is considered an employee during (1)
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1 the first 60 days of disability leave, (2) the period, not to
2 exceed one year, in which his or her eligibility for
3 disability benefits is being considered by the board or
4 reviewed by the courts, and (3) the period he or she receives
5 disability benefits under the provisions of Section 15-152,
6 workers' compensation or occupational disease benefits, or
7 disability income under an insurance contract financed wholly
8 or partially by the employer.
9 (f) Absences without pay, other than formal leaves of
10 absence, of less than 30 calendar days, are not considered as
11 an interruption of a person's status as an employee. If such
12 absences during any period of 12 months exceed 30 work days,
13 the employee status of the person is considered as
14 interrupted as of the 31st work day.
15 (g) A staff member whose employment contract requires
16 services during an academic term is to be considered an
17 employee during the summer and other vacation periods, unless
18 he or she declines an employment contract for the succeeding
19 academic term or his or her employment status is otherwise
20 terminated, and he or she receives no earnings during these
21 periods.
22 (Source: P.A. 89-430, eff. 12-15-95.)
23 (40 ILCS 5/15-131) (from Ch. 108 1/2, par. 15-131)
24 Sec. 15-131. Survivors insurance beneficiary. "Survivors
25 insurance beneficiary": The spouse, dependent unmarried child
26 under age 18 (under age 22 if a full-time student), unmarried
27 child over age 18 who is dependent by reason of a physical or
28 mental disability which began prior to attainment of that
29 age, or dependent parent, who could qualify for survivors
30 insurance payments under this Article.
31 (Source: P.A. 86-273; 86-1488.)
32 (40 ILCS 5/15-134) (from Ch. 108 1/2, par. 15-134)
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1 Sec. 15-134. Participant.
2 (a) Each person shall, as a condition of employment,
3 become a participant and be subject to this Article on the
4 date that he or she becomes an employee, makes an election to
5 participate in, or otherwise becomes a participant in one of
6 the retirement programs offered under this Article, whichever
7 date is later.
8 An employee who becomes a participant shall continue to
9 be a participant until he or she becomes an annuitant, dies
10 or accepts a refund of contributions, except that a person
11 shall not be deemed a participant while participating in an
12 optional program for part-time workers established under
13 Section 15-158.1 or participating in an optional program for
14 employees established under Section 15-158.2.
15 (b) A person employed concurrently by 2 or more
16 employers is eligible to participate in the system on
17 compensation received from all employers; however, his or her
18 combined basic compensation and combined earnings shall not
19 exceed the basic compensation and earnings which would have
20 been payable for full-time employment by the employer under
21 which the employee's basic compensation is the highest.
22 However, effective for all employment on or after July 1,
23 1991, where a person is employed to render service to one
24 employer during an academic or summer term and is employed by
25 another employer to render service to it during the
26 succeeding, nonoverlapping academic or summer term, then
27 exclusively for the purposes of this Section, the person
28 shall be considered to be successively employed by more than
29 one employer, rather than concurrently employed by 2 or more
30 employers.
31 (Source: P.A. 89-430, eff. 12-15-95.)
32 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
33 Sec. 15-136. Retirement annuities - Amount.
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1 (a) The amount of the retirement annuity shall be
2 determined by whichever of the following rules is applicable
3 and provides the largest annuity:
4 Rule 1: The retirement annuity shall be 1.67% of final
5 rate of earnings for each of the first 10 years of service,
6 1.90% for each of the next 10 years of service, 2.10% for
7 each year of service in excess of 20 but not exceeding 30,
8 and 2.30% for each year in excess of 30, except that the
9 annuity for those persons having made an election under
10 Section 15-154(a-1) shall be calculated and payable under the
11 portable retirement benefit program pursuant to the
12 provisions of Section 15-136.4.
13 Rule 2: The retirement annuity shall be the sum of the
14 following, determined from amounts credited to the
15 participant in accordance with the actuarial tables and the
16 prescribed rate of interest in effect at the time the
17 retirement annuity begins:
18 (i) The normal annuity which can be provided on an
19 actuarially actuarial equivalent basis, by the accumulated
20 normal contributions as of the date the annuity begins; and
21 (ii) an annuity from employer contributions of an amount
22 which can be provided on an actuarially equivalent basis from
23 the accumulated normal contributions made by the participant
24 under Section 15-113.6 and Section 15-113.7 plus 1.4 times
25 all other accumulated normal contributions made by the
26 participant, except that the annuity for those persons having
27 made an election under Section 15-154(a-1) shall be
28 calculated and payable under the portable retirement benefit
29 program pursuant to the provisions of Section 15-136.4.
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
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1 earnings is less than $3,500, (2) $108 if the final rate of
2 earnings is at least $3,500 but less than $4,500, (3) $120 if
3 the final rate of earnings is at least $4,500 but less than
4 $5,500, (4) $132 if the final rate of earnings is at least
5 $5,500 but less than $6,500, (5) $144 if the final rate of
6 earnings is at least $6,500 but less than $7,500, (6) $156 if
7 the final rate of earnings is at least $7,500 but less than
8 $8,500, (7) $168 if the final rate of earnings is at least
9 $8,500 but less than $9,500, and (8) $180 if the final rate
10 of earnings is $9,500 or more, except that the annuity for
11 those persons having made an election under Section
12 15-154(a-1) shall be calculated and payable under the
13 portable retirement benefit program pursuant to the
14 provisions of Section 15-136.4.
15 Rule 4: A participant who is at least age 50 and has 25
16 or more years of service as a police officer or firefighter,
17 and a participant who is age 55 or over and has at least 20
18 but less than 25 years of service as a police officer or
19 firefighter, shall be entitled to a retirement annuity of 2
20 1/4% of the final rate of earnings for each of the first 10
21 years of service as a police officer or firefighter, 2 1/2%
22 for each of the next 10 years of service as a police officer
23 or firefighter, and 2 3/4% for each year of service as a
24 police officer or firefighter in excess of 20, except that
25 the annuity for those persons having made an election under
26 Section 15-154(a-1) shall be calculated and payable under the
27 portable retirement benefit program pursuant to the
28 provisions of Section 15-136.4. The retirement annuity for
29 all other service shall be computed under Rule 1, payable
30 under the portable retirement benefit program pursuant to the
31 provisions of Section 15-136.4, if applicable.
32 (b) The retirement annuity provided under Rules 1 and 3
33 above shall be reduced by 1/2 of 1% for each month the
34 participant is under age 60 at the time of retirement.
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1 However, this reduction shall not apply in the following
2 cases:
3 (1) For a disabled participant whose disability
4 benefits have been discontinued because he or she has
5 exhausted eligibility for disability benefits under
6 clause (6) (5) of Section 15-152;
7 (2) For a participant who has at least 35 years of
8 service; or
9 (3) For that portion of a retirement annuity which
10 has been provided on account of service of the
11 participant during periods when he or she performed the
12 duties of a police officer or firefighter, if these
13 duties were performed for at least 5 years immediately
14 preceding the date the retirement annuity is to begin.
15 (c) The maximum retirement annuity provided under Rules
16 1, 2, and 4 shall be the lesser of (1) the annual limit of
17 benefits as specified in Section 415 of the Internal Revenue
18 Code of 1986, as such Section may be amended from time to
19 time and as such benefit limits shall be adjusted by the
20 Commissioner of Internal Revenue, and (2) 75% of final rate
21 of earnings; however, this limitation of 75% of final rate of
22 earnings shall not apply to a person who is a participant or
23 annuitant on September 15, 1977 if it results in a retirement
24 annuity less than that which is payable to the annuitant or
25 which would have been payable to the participant under the
26 provisions of this Article in effect on June 30, 1977.
27 (d) An annuitant whose status as an employee terminates
28 after August 14, 1969 shall receive automatic increases in
29 his or her retirement annuity as follows:
30 Effective January 1 immediately following the date the
31 retirement annuity begins, the annuitant shall receive an
32 increase in his or her monthly retirement annuity of 0.125%
33 of the monthly retirement annuity provided under Rule 1, Rule
34 2, Rule 3, or Rule 4, contained in this Section, multiplied
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1 by the number of full months which elapsed from the date the
2 retirement annuity payments began to January 1, 1972, plus
3 0.1667% of such annuity, multiplied by the number of full
4 months which elapsed from January 1, 1972, or the date the
5 retirement annuity payments began, whichever is later, to
6 January 1, 1978, plus 0.25% of such annuity multiplied by the
7 number of full months which elapsed from January 1, 1978, or
8 the date the retirement annuity payments began, whichever is
9 later, to the effective date of the increase.
10 The annuitant shall receive an increase in his or her
11 monthly retirement annuity on each January 1 thereafter
12 during the annuitant's life of 3% of the monthly annuity
13 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
14 this Section. The change made under this subsection by P.A.
15 81-970 is effective January 1, 1980 and applies to each
16 annuitant whose status as an employee terminates before or
17 after that date.
18 Beginning January 1, 1990, all automatic annual increases
19 payable under this Section shall be calculated as a
20 percentage of the total annuity payable at the time of the
21 increase, including all increases previously granted under
22 this Article. The change made in this subsection by P.A.
23 85-1008 is effective January 26, 1988, and is applicable
24 without regard to whether status as an employee terminated
25 before that date.
26 (e) If, on January 1, 1987, or the date the retirement
27 annuity payment period begins, whichever is later, the sum of
28 the retirement annuity provided under Rule 1 or Rule 2 of
29 this Section and the automatic annual increases provided
30 under the preceding subsection or Section 15-136.1, amounts
31 to less than the retirement annuity which would be provided
32 by Rule 3, the retirement annuity shall be increased as of
33 January 1, 1987, or the date the retirement annuity payment
34 period begins, whichever is later, to the amount which would
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1 be provided by Rule 3 of this Section. Such increased amount
2 shall be considered as the retirement annuity in determining
3 benefits provided under other Sections of this Article. This
4 paragraph applies without regard to whether status as an
5 employee terminated before the effective date of this
6 amendatory Act of 1987, provided that the annuitant was
7 employed at least one-half time during the period on which
8 the final rate of earnings was based.
9 (f) A participant is entitled to such additional annuity
10 as may be provided on an actuarially actuarial equivalent
11 basis, by any accumulated additional contributions to his or
12 her credit. However, the additional contributions made by
13 the participant toward the automatic increases in annuity
14 provided under this Section shall not be taken into account
15 in determining the amount of such additional annuity.
16 (g) If, (1) by law, a function of a governmental unit,
17 as defined by Section 20-107 of this Code, is transferred in
18 whole or in part to an employer, and (2) a participant
19 transfers employment from such governmental unit to such
20 employer within 6 months after the transfer of the function,
21 and (3) the sum of (A) the annuity payable to the participant
22 under Rule 1, 2, or 3 of this Section (B) all proportional
23 annuities payable to the participant by all other retirement
24 systems covered by Article 20, and (C) the initial primary
25 insurance amount to which the participant is entitled under
26 the Social Security Act, is less than the retirement annuity
27 which would have been payable if all of the participant's
28 pension credits validated under Section 20-109 had been
29 validated under this system, a supplemental annuity equal to
30 the difference in such amounts shall be payable to the
31 participant.
32 (h) On January 1, 1981, an annuitant who was receiving a
33 retirement annuity on or before January 1, 1971 shall have
34 his or her retirement annuity then being paid increased $1
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1 per month for each year of creditable service. On January 1,
2 1982, an annuitant whose retirement annuity began on or
3 before January 1, 1977, shall have his or her retirement
4 annuity then being paid increased $1 per month for each year
5 of creditable service.
6 (i) On January 1, 1987, any annuitant whose retirement
7 annuity began on or before January 1, 1977, shall have the
8 monthly retirement annuity increased by an amount equal to 8¢
9 per year of creditable service times the number of years that
10 have elapsed since the annuity began.
11 (Source: P.A. 86-272; 86-273; 86-1028; revised 5-17-96.)
12 (40 ILCS 5/15-136.4 new)
13 Sec. 15-136.4. Portable Retirement Benefit Program.
14 (a) For purposes of this Section, "eligible spouse"
15 means the husband or wife of a participant to whom the
16 participant is married on the date the participant's annuity
17 begins. However, if the participant should die prior to the
18 date the annuity would have begun, then "eligible spouse"
19 means the husband or wife, if any, to whom the participant
20 was married throughout the one-year period preceding the date
21 of his or her death.
22 (b) If a participant has an eligible spouse on the date
23 his or her annuity payments commence, the annuity shall be
24 paid in the form of a 50% joint and survivor annuity unless
25 the participant elects otherwise in writing and his or her
26 eligible spouse consents to that election. Under a 50% joint
27 and survivor annuity, a reduced amount shall be paid to the
28 participant for his or her lifetime and his or her eligible
29 spouse, if surviving at the participant's death, shall be
30 entitled to receive thereafter a lifetime survivorship
31 annuity in a monthly amount equal to 50% of the reduced
32 monthly amount that was payable to the participant. The
33 reduced amount payable to the participant under the 50% joint
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1 and survivor annuity shall be determined so that the
2 aggregate of the annuity payments expected to be made to the
3 participant and his or her eligible spouse is the actuarial
4 equivalent of a single-life annuity. The last payment of a
5 50% joint and survivor annuity shall be made as of the first
6 day of the month in which the death of the survivor occurs.
7 (c) Instead of the 50% joint and survivor annuity, a
8 participant may elect in writing, within the 90-day period
9 prior to the date his or her annuity payments commence, and
10 only with the consent of his or her eligible spouse, to
11 receive a monthly amount in the form of a single-life
12 annuity. A participant may also elect instead an optional
13 form of benefit under subsection (k). However, if the
14 participant does elect an optional form of benefit under
15 subsection (k) and if the contingent annuitant under the
16 option is not the participant's eligible spouse, then the
17 optional election shall be canceled and the annuity shall be
18 paid in the form of a 50% joint and survivor annuity unless,
19 within the 90-day period preceding the annuity commencement
20 date, the eligible spouse consents to the optional election.
21 (d) A participant may also revoke any election made
22 under this Section at any time during the 90-day period
23 preceding the date the participant's annuity commences if the
24 purpose of such revocation is to reinstate coverage under the
25 50% joint and survivor annuity.
26 (e) The eligible spouse's consent to any election made
27 pursuant to this Section that requires the eligible spouse's
28 consent shall be in writing and shall acknowledge the effect
29 of the consent. In addition, the eligible spouse's signature
30 on the written consent must be witnessed by a notary public.
31 The eligible spouse's consent need not be obtained if the
32 system is satisfied that there is no eligible spouse, that
33 the eligible spouse cannot be located, or because of any
34 other relevant circumstances. An eligible spouse's consent
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1 under this Section is valid only with respect to the
2 specified alternate contingent annuitant designated by the
3 participant. If the alternate contingent annuitant is
4 subsequently changed, a new consent by the eligible spouse is
5 required. The eligible spouse's consent to an election made
6 by a participant pursuant to this Section, once made, may not
7 be revoked by the eligible spouse.
8 (f) Within a reasonable period of time preceding the
9 date a participant's annuity commences, a participant shall
10 be supplied with a written explanation of (1) the terms and
11 conditions of the 50% joint and survivor annuity, (2) the
12 participant's right, if any, to elect a single-life annuity
13 or an optional form of payment under subsection (k) in lieu
14 of the 50% joint and survivor annuity and subject, in certain
15 cases, to his or her eligible spouse's consent, and (3) the
16 participant's right to reinstate coverage under the 50% joint
17 and survivor annuity prior to his or her annuity commencement
18 date by revoking an election of a single-life annuity or an
19 optional form of benefit under subsection (k).
20 (g) If a participant does not have an eligible spouse
21 on the date his or her annuity payments commence, the
22 participant shall receive a single-life annuity, subject to
23 his or her right, if any, to elect an optional form of
24 benefit. The last payment of the single-life annuity shall be
25 made as of the first day of the month in which the death of
26 the participant occurs.
27 (h) A participant with a least 5 years of service whose
28 employment has not terminated shall be covered by the 50%
29 joint and survivor annuity provisions so that if he or she
30 dies prior to termination of employment, his or her eligible
31 spouse will be entitled to receive an annuity. The annuity
32 payable under this subsection (h) to the eligible spouse
33 shall be actuarially equivalent to the amount that would be
34 payable as a survivor annuity under subsection (b) if (1) in
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1 the case of a participant who dies after the date on which
2 the participant attained the earliest retirement age, the
3 participant had retired with an immediate qualified joint and
4 survivor annuity on the day before the participant's date of
5 death; or (2) in the case of a participant who dies on or
6 before the date on which the participant would have attained
7 the earliest retirement age, the participant had separated
8 from service on the date of death, survived to the earliest
9 retirement age, retired with an immediate qualified joint and
10 survivor annuity at the earliest retirement age, and died on
11 the day after the day on which the participant would have
12 attained the earliest retirement age.
13 The annuity payable to an eligible spouse of a
14 participant shall commence as of the beginning of the month
15 next following the later of the date of death or the date the
16 participant would have met the eligibility requirements for
17 an annuity and shall continue through the beginning of the
18 month in which the death of the eligible spouse occurs.
19 No benefit shall be payable under this subsection (h) for
20 death during employment after the participant has satisfied
21 the requirements for retirement if an option is effective
22 under subsection (k).
23 (i) A participant who (1) has terminated employment with
24 at least 5 years of service, (2) has not begun receiving
25 annuity payments, (3) has not taken a refund under Section
26 15-154(a-2), and (4) has not elected an effective option
27 under subsection (k), shall be covered by the 50% joint and
28 survivor annuity provisions of subsection (b) until the date
29 his or her annuity payments commence. If the participant
30 dies before the date his or her annuity payments commence,
31 the participant's surviving eligible spouse shall receive an
32 annuity computed in accordance with the applicable provisions
33 of this Section as if the participant's annuity payments had
34 commenced on the first day of the month coincident with or
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1 next following the later of his or her date of death or the
2 date the participant would have been eligible for a
3 retirement annuity based on service prior to his or her
4 death. The annuity payable to such an eligible spouse shall
5 commence on the first day of the month coincident with or
6 next following the later of the participant's date of death
7 or the date the participant would have been eligible for a
8 retirement annuity based on service prior to his death and
9 shall continue through the beginning of the month in which
10 the death of the eligible spouse occurs.
11 (j) The provisions of subsection (i) shall not affect
12 the right of a participant to elect a single-life annuity,
13 pursuant to the provisions of subsection (b).
14 (k) By filing a timely election with the system, a
15 participant who will be eligible to receive a retirement
16 annuity under this Section may designate his or her spouse or
17 any person approved by the system as his or her contingent
18 annuitant and elect to receive an annuity payable in
19 accordance with one of the following options, instead of the
20 annuity to which he or she may otherwise become entitled:
21 Option 1: The participant shall receive a reduced
22 annuity payable for life, and payments in the amount of
23 100% of such reduced amount shall, after the
24 participant's death, be continued to the contingent
25 annuitant during the latter's lifetime.
26 Option 2: The participant shall receive a reduced
27 annuity payable for life, and payments in the amount of
28 75% of such reduced annuity shall, after the
29 participant's death, be continued to the contingent
30 annuitant during the latter's lifetime.
31 Option 3: The participant shall receive a reduced
32 annuity payable for life, and payments in the amount of
33 50% of such reduced annuity shall, after the
34 participant's death, be continued to the contingent
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1 annuitant during the latter's lifetime.
2 The aggregate of the annuity payments expected to be paid
3 to a participant and his contingent annuitant under any of
4 the above options shall be the actuarial equivalent of the
5 annuity that the participant is otherwise entitled to receive
6 upon retirement.
7 Under no circumstances may an option be elected, changed,
8 or revoked after the date the participant's annuity
9 commences. An option in favor of a contingent annuitant who
10 is not the participant's eligible spouse may be revoked at
11 any time prior to the date the participant's annuity payments
12 commence. If the contingent annuitant under the elected
13 option is not the participant's eligible spouse, then the
14 election is valid only if the eligible spouse consents to the
15 participant's optional election and to the specific
16 contingent annuitant within the 90-day period preceding the
17 date the participant's annuity commences.
18 An election made pursuant to this subsection (k) shall
19 become inoperative if the participant's employment terminates
20 before he or she is eligible for a retirement annuity, or if
21 the participant or the contingent annuitant dies before the
22 date the participant's annuity payments commence, or if the
23 eligible spouse's consent is required and not given. An
24 effective option under this subsection (k) takes the place of
25 any benefit otherwise payable under this Section, and the
26 form made available by the system for election of the option
27 shall so specify.
28 (1) Within the appropriate applicable period under
29 Section 417 of the Internal Revenue Code of 1986, as amended
30 from time to time, a participant shall be supplied with a
31 written explanation of (1) the terms and conditions of the
32 preretirement survivor annuity under subsections (h) and (i),
33 (2) the participant's right, if any, to elect a single-life
34 annuity or an optional form of payment under subsection (k)
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1 in lieu of the preretirement survivor annuity and subject, in
2 certain cases, to his or her eligible spouse's consent, and
3 (3) the participant's right to reinstate coverage under the
4 preretirement survivor annuity by revoking an election of a
5 single-life annuity or an optional form of benefit under
6 subsection (k).
7 (40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
8 Sec. 15-141. Death benefits - Death of participant. The
9 beneficiary of a participant is entitled to a death benefit
10 equal to the sum of (1) the employee's accumulated normal and
11 additional contributions on the date of death, (2) the
12 employee's accumulated survivors insurance contributions on
13 the date of death, if a survivors insurance benefit is not
14 payable, (3) an amount equal to the employee's final rate of
15 earnings, but not more than $5,000 if (i) the beneficiary,
16 under rules of the board, was dependent upon the participant,
17 (ii) the participant was a participating employee immediately
18 prior to his or her death, and (iii) a survivors insurance
19 benefit is not payable, and (4) $2,500 if (i) the beneficiary
20 was not dependent upon the participant, (ii) the participant
21 was a participating employee immediately prior to his or her
22 death, and (iii) a survivors insurance benefit is not
23 payable.
24 However, if the participant has elected to participate in
25 the portable retirement benefit program by making the
26 election specified in Section 15-154(a-1), the death benefit
27 shall be calculated as follows. The death benefit shall be
28 equal to the employee's accumulated normal and additional
29 contributions on the date of death, or if the employee died
30 with 5 or more years of service for employment as defined in
31 Section 15-113.1, his or her beneficiary shall also be
32 entitled to employer contributions in an amount equal to the
33 sum of accumulated normal and additional contributions;
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1 except that if a benefit to a surviving spouse is payable
2 under Section 15-136.4, the death benefit payable under this
3 paragraph shall be reduced, but to not less than zero, by the
4 actuarial value of the benefit payable to the surviving
5 spouse.
6 If payments are made under any State or Federal Workers'
7 Compensation or Occupational Diseases Law because of the
8 death of an employee, the portion of the death benefit
9 payable from employer contributions shall be reduced by the
10 total amount of the payments.
11 (Source: P.A. 87-8.)
12 (40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142)
13 Sec. 15-142. Death benefits - Death of annuitant. Upon
14 the death of an annuitant receiving a retirement annuity or
15 disability retirement annuity, the annuitant's beneficiary
16 shall, if a survivor's insurance benefit is not payable under
17 Section 15-145 or an annuity is not payable under Section
18 15-136.4, be entitled to a death benefit equal to the greater
19 of the following: (1) the excess, if any, of the sum of the
20 accumulated normal, survivors insurance and additional
21 contributions as of the date of retirement, or the date the
22 disability retirement annuity began, whichever is earlier,
23 over the sum of all annuity payments made prior to the date
24 of death, or (2) $1,000.
25 (Source: P.A. 83-1440.)
26 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
27 Sec. 15-145. Survivors insurance benefits; Conditions
28 and amounts.
29 (a) The survivors insurance benefits provided under this
30 Section shall be payable upon the death of (1) a
31 participating employee with at least 1 1/2 years of service,
32 (2) a participant who terminated employment with at least 10
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1 years of service, and (3) an annuitant in receipt of a
2 retirement annuity or disability retirement annuity under
3 this Article.
4 Service under the State Employees' Retirement System of
5 Illinois, the Teachers' Retirement System of the State of
6 Illinois and the Public School Teacher's Pension and
7 Retirement Fund of Chicago shall be considered in determining
8 eligibility for survivors benefits under this Section.
9 If by law, a function of a governmental unit, as defined
10 by Section 20-107, is transferred in whole or in part to an
11 employer, and an employee transfers employment from this
12 governmental unit to such employer within 6 months after the
13 transfer of this function, the service credits in the
14 governmental unit's retirement system which have been
15 validated under Section 20-109 shall be considered in
16 determining eligibility for survivors benefits under this
17 Section.
18 (b) A surviving spouse of a deceased participant, or of
19 a deceased annuitant who had a survivors insurance
20 beneficiary at the time of retirement, shall receive a
21 survivors annuity of 30% of the final rate of earnings.
22 Payments shall begin on the day following the participant's
23 or annuitant's death or the date the surviving spouse attains
24 age 50, whichever is later, and continue until the death of
25 the surviving spouse. The annuity shall be payable to the
26 surviving spouse prior to attainment of age 50 if the
27 surviving spouse has in his or her care a deceased
28 participant's or annuitant's dependent unmarried child under
29 age 18 (under age 22 if a full-time student) who is eligible
30 for a survivors annuity. Remarriage of a surviving spouse
31 prior to attainment of age 55 shall disqualify him or her for
32 the receipt of a survivors annuity.
33 (c) Each dependent unmarried child under age 18 (under
34 age 22 if a full-time student) of a deceased participant, or
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1 of a deceased annuitant who had a survivors insurance
2 beneficiary at the time of his or her retirement, shall
3 receive a survivors annuity equal to the sum of (1) 20% of
4 the final rate of earnings, and (2) 10% of the final rate of
5 earnings divided by the number of children entitled to this
6 benefit. Payments shall begin on the day following the
7 participant's or annuitant's death and continue until the
8 child marries, dies, or attains age 18 (age 22 if a full-time
9 student). If the child is in the care of a surviving spouse
10 who is eligible for survivors insurance benefits, the child's
11 benefit shall be paid to the surviving spouse.
12 Each unmarried child over age 18 of a deceased
13 participant or of a deceased annuitant who had a survivor's
14 insurance beneficiary at the time of his or her retirement,
15 and who was dependent upon the participant or annuitant by
16 reason of a physical or mental disability which began prior
17 to the date the child attained age 18 (age 22 if a full-time
18 student), shall receive a survivor's annuity equal to the sum
19 of (1) 20% of the final rate of earnings, and (2) 10% of the
20 final rate of earnings divided by the number of children
21 entitled to survivors benefits. Payments shall begin on the
22 day following the participant's or annuitant's death and
23 continue until the child marries, dies, or is no longer
24 disabled. If the child is in the care of a surviving spouse
25 who is eligible for survivors insurance benefits, the child's
26 benefit may be paid to the surviving spouse. For the
27 purposes of this Section, disability means inability to
28 engage in any substantial gainful activity by reason of any
29 medically determinable physical or mental impairment that can
30 be expected to result in death or that has lasted or can be
31 expected to last for a continuous period of at least one
32 year.
33 (d) Each dependent parent of a deceased participant, or
34 of a deceased annuitant who had a survivors insurance
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1 beneficiary at the time of his or her retirement, shall
2 receive a survivors annuity equal to the sum of (1) 20% of
3 final rate of earnings, and (2) 10% of final rate of earnings
4 divided by the number of parents who qualify for the benefit.
5 Payments shall begin when the parent reaches age 55 or the
6 day following the participant's or annuitant's death,
7 whichever is later, and continue until the parent dies.
8 Remarriage of a parent prior to attainment of age 55 shall
9 disqualify the parent for the receipt of a survivors annuity.
10 (e) In addition to the survivors annuity provided above,
11 each survivors insurance beneficiary shall, upon death of the
12 participant or annuitant, receive a lump sum payment of
13 $1,000 divided by the number of such beneficiaries.
14 (f) The changes made in this Section by Public Act
15 81-712 pertaining to survivors annuities in cases of
16 remarriage prior to age 55 shall apply to each survivors
17 insurance beneficiary who remarries after June 30, 1979,
18 regardless of the date that the participant or annuitant
19 terminated his employment or died.
20 (g) On January 1, 1981, any person who was receiving a
21 survivors annuity on or before January 1, 1971 shall have the
22 survivors annuity then being paid increased by 1% for each
23 full year which has elapsed from the date the annuity began.
24 On January 1, 1982, any survivor whose annuity began after
25 January 1, 1971, but before January 1, 1981, shall have the
26 survivor's annuity then being paid increased by 1% for each
27 year which has elapsed from the date the survivor's annuity
28 began. On January 1, 1987, any survivor who began receiving a
29 survivor's annuity on or before January 1, 1977, shall have
30 the monthly survivor's annuity increased by $1 for each full
31 year which has elapsed since the date the survivor's annuity
32 began.
33 (h) If the sum of the lump sum and total monthly
34 survivor benefits payable under this Section upon the death
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1 of a participant amounts to less than the sum of the death
2 benefits payable under items (2) and (3) of Section 15-141,
3 the difference shall be paid in a lump sum to the beneficiary
4 of the participant who is living on the date that this
5 additional amount becomes payable.
6 (i) If the sum of the lump sum and total monthly
7 survivor benefits payable under this Section upon the death
8 of an annuitant receiving a retirement annuity or disability
9 retirement annuity amounts to less than the death benefit
10 payable under Section 15-142, the difference shall be paid to
11 the beneficiary of the annuitant who is living on the date
12 that this additional amount becomes payable.
13 (j) Effective on the later of (1) January 1, 1990, or
14 (2) the January 1 on or next after the date on which the
15 survivor annuity begins, if the deceased member died while
16 receiving a retirement annuity, or in all other cases the
17 January 1 nearest the first anniversary of the date the
18 survivor annuity payments begin, every survivors insurance
19 beneficiary shall receive an increase in his or her monthly
20 survivors annuity of 3%. On each January 1 after the initial
21 increase, the monthly survivors annuity shall be increased by
22 3% of the total survivors annuity provided under this
23 Article, including previous increases provided by this
24 subsection. Such increases shall apply to the survivors
25 insurance beneficiaries of each participant and annuitant,
26 whether or not the employment status of the participant or
27 annuitant terminates before the effective date of this
28 amendatory Act of 1990.
29 (k) If the Internal Revenue Code of 1986, as amended,
30 requires that the survivors benefits be payable at an age
31 earlier than that specified in this Section the benefits
32 shall begin at the earlier age, in which event, the
33 survivor's beneficiary shall be entitled only to that amount
34 which is equal to the actuarial equivalent of the benefits
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1 provided by this Section.
2 (l) The changes made to this Section and Section 15-131
3 by this amendatory Act of 1997, relating to benefits for
4 certain unmarried children who are full-time students under
5 age 22, apply without regard to whether the deceased member
6 was in service on or after the effective date of this
7 amendatory Act of 1997. These changes do not authorize the
8 repayment of a refund or a re-election of benefits, and any
9 benefit or increase in benefits resulting from these changes
10 is not payable retroactively for any period before the
11 effective date of this amendatory Act of 1997.
12 (Source: P.A. 86-272; 86-273; 86-1028; 86-1488.)
13 (40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
14 Sec. 15-146. Survivors insurance benefits - Minimum
15 amounts.
16 (a) The minimum total survivors annuity payable on
17 account of the death of a participant shall be 50% of the
18 retirement annuity which would have been provided under Rule
19 1, Rule 2, or Rule 3 of Section 15-136 upon the participant's
20 attainment of the minimum age at which the penalty for early
21 retirement would not be applicable or the date of the
22 participant's death, whichever is later, on the basis of
23 credits earned prior to the time of death.
24 (b) The minimum total survivors annuity payable on
25 account of the death of an annuitant shall be 50% of the
26 retirement annuity which is payable under Section 15-136 at
27 the time of death or 50% of the disability retirement annuity
28 payable under Section 15-153.2. This minimum survivors
29 annuity shall apply to each participant and annuitant who
30 dies after September 16, 1979, whether or not his or her
31 employee status terminates before or after that date.
32 (c) If an annuitant has elected a reversionary annuity,
33 the retirement annuity referred to in this Section is that
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1 which would have been payable had such election not been
2 filed.
3 (d) If a participant has made the election provided for
4 under Section 15-154(a-1), the minimum survivor benefit shall
5 be determined under Section 15-136.4.
6 (Source: P.A. 83-1362; 83-1440.)
7 (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
8 Sec. 15-154. Refunds.
9 (a) A participant whose status as an employee is
10 terminated, regardless of cause, or who has been on lay off
11 status for more than 120 days, and who is not on leave of
12 absence, is entitled to a refund of contributions upon
13 application; except that not more than one such refund
14 application may be made during any academic year.
15 Except as set forth in subsections (a-1) and (a-2), the
16 refund shall be the sum of the accumulated normal, additional
17 and survivors insurance contributions, less the amount of
18 interest credited on these contributions each year in excess
19 of 4 1/2% of the amount on which interest was calculated.
20 (a-1) Every person who becomes a participating employee
21 after the date on which his or her employer first offers an
22 optional retirement program under Section 15-158.2 may elect
23 within 60 days of becoming a participant to have any refund
24 calculated pursuant to subsection (a-2) by forgoing all
25 survivors insurance benefits to which the person's survivors
26 would otherwise be entitled under this Article. This
27 election is irrevocable and may be made by filing an election
28 with the system on such form as the Executive Director shall
29 prescribe.
30 Each person who is a participating employee on the date
31 on which his or her employer first offers an optional
32 retirement program under Section 15-158.2 shall have a
33 one-time option to elect to have his or her refund calculated
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1 pursuant to subsection (a-2), by forgoing all survivors
2 insurance benefits to which the person's survivors would
3 otherwise be entitled under this Article. The election will
4 not be effective until one year after the election is filed
5 with the system. This election is irrevocable and may be
6 made by filing an election with the system, on such form as
7 the Executive Director shall prescribe, within one year after
8 the date on which his or her employer first offers an
9 optional retirement program under Section 15-158.2.
10 A person may make the one-time irrevocable election
11 authorized under this Section or the election authorized
12 under Section 15-158.2(g), but may not make both elections.
13 Any person interested in electing the portable retirement
14 benefit program provided under this Section and Section
15 15-136.4 must be given a consultation with the State
16 Universities Retirement System before making that election.
17 (a-2) The refund elected under subsection (a-1) shall be
18 the sum of the participant's accumulated normal and
19 additional contributions, as defined in Sections 15-116 and
20 15-117. If the participant terminates with 5 or more years
21 of service for employment as defined in Section 15-113.1, he
22 or she shall also be entitled to a refund of employer
23 contributions in an amount equal to the sum of the
24 accumulated normal and additional contributions, as defined
25 in Sections 15-116 and 15-117.
26 (b) Upon acceptance of a refund, the participant
27 forfeits all accrued rights and credits in the System, and if
28 subsequently reemployed, the participant shall be considered
29 a new employee subject to all the qualifying conditions for
30 participation and eligibility for benefits applicable to new
31 employees. If such person again becomes a participating
32 employee and continues as such for 2 years, or is employed by
33 an employer and participates for at least 2 years in the
34 Federal Civil Service Retirement System, all such rights,
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1 credits, and previous status as a participant shall be
2 restored upon repayment of the amount of the refund, together
3 with compound interest thereon from the date the refund was
4 received to the date of repayment at the rate of 6% per annum
5 through August 31, 1982, and at the effective rates after
6 that date.
7 (c) If a participant has made survivors insurance
8 contributions, but has no survivors insurance beneficiary
9 upon retirement, he or she shall be entitled to a refund of
10 the accumulated survivors insurance contributions, or to an
11 additional annuity the value of which is equal to the
12 accumulated survivors insurance contributions.
13 (d) A participant, upon application, is entitled to a
14 refund of his or her accumulated additional contributions
15 except those covering the cost of the annual increase in the
16 retirement annuity provided under Section 15-136. Upon the
17 acceptance of such a refund of accumulated additional
18 contributions, the participant forfeits all rights and
19 credits which may have accrued because of such contributions.
20 (e) A participant who terminates his or her employee
21 status and elects to waive service credit under Section
22 15-154.2, is entitled to a refund of the accumulated normal,
23 additional and survivors insurance contributions, if any,
24 which were credited the participant for this service, or to
25 an additional annuity the value of which is equal to the
26 accumulated normal, additional and survivors insurance
27 contributions, if any; except that not more than one such
28 refund application may be made during any academic year. Upon
29 acceptance of this refund, the participant forfeits all
30 rights and credits accrued because of this service.
31 (f) If a police officer or firefighter receives a
32 retirement annuity under Rule 1, 2, or 3 of Section 15-136,
33 he or she shall be entitled at retirement to a refund of the
34 difference between his or her accumulated normal
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1 contributions and the normal contributions which would have
2 accumulated had such person filed a waiver of the retirement
3 formula provided by Rule 4 of Section 15-136.
4 (g) If, at the time of retirement, a participant would
5 be entitled to a retirement annuity under Rule 1, 2, 3 or 4
6 of Section 15-136 that exceeds the maximum specified in
7 clause (1) of subsection (c) of Section 15-136, he or she
8 shall be entitled to a refund of the employee contributions,
9 if any, paid under Section 15-157 after the date upon which
10 continuance of such contributions would have otherwise caused
11 the retirement annuity to exceed this maximum, plus compound
12 interest at the effective rates.
13 (Source: P.A. 87-8; 87-794; 87-895; 87-1265; 88-45.)
14 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
15 Sec. 15-157. Employee Contributions.
16 (a) Each participating employee shall make contributions
17 towards the retirement annuity of each payment of earnings
18 applicable to employment under this system on and after the
19 date of becoming a participant as follows: Prior to
20 September 1, 1949, 3 1/2% of earnings; from September 1, 1949
21 to August 31, 1955, 5%; from September 1, 1955 to August 31,
22 1969, 6%; from September 1, 1969, 6 1/2%. These
23 contributions are to be considered as normal contributions
24 for purposes of this Article.
25 Each participant who is a police officer or firefighter
26 shall make normal contributions of 8% of each payment of
27 earnings applicable to employment as a police officer or
28 firefighter under this system on or after September 1, 1981,
29 unless he or she files with the board within 60 days after
30 the effective date of this amendatory Act of 1991 or 60 days
31 after the board receives notice that he or she is employed as
32 a police officer or firefighter, whichever is later, a
33 written notice waiving the retirement formula provided by
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1 Rule 4 of Section 15-136. This waiver shall be irrevocable.
2 If a participant had met the conditions set forth in Section
3 15-132.1 prior to the effective date of this amendatory Act
4 of 1991 but failed to make the additional normal
5 contributions required by this paragraph, he or she may elect
6 to pay the additional contributions plus compound interest at
7 the effective rate. If such payment is received by the
8 board, the service shall be considered as police officer
9 service in calculating the retirement annuity under Rule 4 of
10 Section 15-136.
11 (b) Starting September 1, 1969, each participating
12 employee shall make additional contributions of 1/2 of 1% of
13 earnings to finance a portion of the cost of the annual
14 increases in retirement annuity provided under Section
15 15-136.
16 (c) Each participating employee shall make additional
17 survivors insurance contributions of 1% of earnings
18 applicable under this system on and after August 1, 1959.
19 The contribution made under this subsection shall be used to
20 finance survivors insurance benefits, unless the participant
21 has made an election under Section 15-154(a-1), in which case
22 the contribution made under this subsection shall be used to
23 finance the benefits obtained under that election.
24 Contributions in excess of $80 during any fiscal year
25 beginning August 31, 1969 and in excess of $120 during any
26 fiscal year thereafter until September 1, 1971 shall be
27 considered as additional contributions for purposes of this
28 Article.
29 (d) If the board by board rule so permits and subject to
30 such conditions and limitations as may be specified in its
31 rules, a participant may make other additional contributions
32 of such percentage of earnings or amounts as the participant
33 shall elect in a written notice thereof received by the
34 board.
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1 (e) That fraction of a participant's total accumulated
2 normal contributions, the numerator of which is equal to the
3 number of years of service in excess of that which is
4 required to qualify for the maximum retirement annuity, and
5 the denominator of which is equal to the total service of the
6 participant, shall be considered as accumulated additional
7 contributions. The determination of the applicable maximum
8 annuity and the adjustment in contributions required by this
9 provision shall be made as of the date of the participant's
10 retirement.
11 (f) Notwithstanding the foregoing, a participating
12 employee shall not be required to make contributions under
13 this Section after the date upon which continuance of such
14 contributions would otherwise cause his or her retirement
15 annuity to exceed the maximum retirement annuity as specified
16 in clause (1) of subsection (c) of Section 15-136.
17 (g) A participating employee may make contributions for
18 the purchase of service credit under this Article.
19 (Source: P.A. 86-272; 86-1488.)
20 (40 ILCS 5/15-157.1) (from Ch. 108 1/2, par. 15-157.1)
21 Sec. 15-157.1. Pickup Pick up of employee contributions.
22 (a) Each employer shall pick up the employee
23 contributions required under subsections (a), (b), and (c) of
24 Section 15-157 for all earnings payments made on and after
25 January 1, 1981, and the contributions so picked up shall be
26 treated as employer contributions in determining tax
27 treatment under the United States Internal Revenue Code.
28 These contributions shall not be included as gross income of
29 the participant until such time as they are distributed or
30 made available. The employer shall pay these employee
31 contributions from the same source of funds which is used in
32 paying earnings to the employee. The employer may pick up
33 these contributions by a reduction in the cash salary of the
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1 participants, or by an offset against a future salary
2 increase, or by a combination of a reduction in salary and
3 offset against a future salary increase.
4 (b) Subject to the requirements of federal law, a
5 participating employee may elect to have the employer pick up
6 optional contributions that the participant has elected to
7 pay to the System under Section 15-157(g), and the
8 contributions so picked up shall be treated as employer
9 contributions for the purposes of determining federal tax
10 treatment under the federal Internal Revenue Code of 1986.
11 These contributions shall not be included as gross income of
12 the participant until such time as they are distributed or
13 made available. The employer shall pick up the contributions
14 by a reduction in the cash salary of the participant and
15 shall pay the contributions from the same source of funds
16 that is used to pay earnings to the participant. The
17 election to have optional contributions picked up is
18 irrevocable.
19 (Source: P.A. 83-1440.)
20 (40 ILCS 5/15-158.2)
21 Sec. 15-158.2. Optional retirement program for
22 educational employees.
23 (a) Purpose. The General Assembly finds that it is
24 important for colleges and universities to be able to attract
25 and retain the most qualified employees and that in order to
26 attract and retain these employees, colleges and universities
27 should have the flexibility to provide an alternative
28 retirement program for eligible employees persons who elect
29 not to participate in the other retirement programs plan of
30 contributions and benefits otherwise provided under this
31 Article.
32 (b) Definitions. For the purposes of this Section,
33 "eligible employee person" means an employee who is eligible
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1 to participate in the State Universities University
2 Retirement System without respect to Section 15-107(a)(9) and
3 who does not have sufficient age and service to qualify for a
4 retirement annuity under Section 15-135. A "currently
5 eligible employee person" is an employee a person who becomes
6 an eligible employee person on the effective date of the
7 optional retirement program established by the employee's
8 person's employer. A "newly eligible employee person" is an
9 employee a person who becomes an eligible employee person
10 after the effective date of the optional retirement program
11 established by the employee's person's employer.
12 (c) Program. Each employer subject to this Article may
13 elect to establish an optional retirement program under this
14 Section for the eligible employees whom persons that it
15 employs. The optional retirement program shall provide
16 retirement benefits for participating employees persons
17 through the purchase of annuity contracts, either fixed or
18 variable or a combination thereof, through the purchase of
19 mutual funds, or through both and shall may also provide for
20 death and disability benefits.
21 The State Universities Retirement System shall be the
22 plan sponsor for the program. Consistent with its fiduciary
23 duty to the participants and beneficiaries of the program,
24 the Board of Trustees of the System may delegate aspects of
25 program administration as it sees fit to The program may
26 provide for administration of the program by companies
27 authorized to do business in this State, to or the employers,
28 employer or to a combination of both, but shall not require
29 any action by the State Universities Retirement System or its
30 Board of Trustees. Two or more employers may agree to
31 establish a joint program under this Section.
32 The plan program must be qualified under the Internal
33 Revenue Code of 1986.
34 (d) Proposals. The System, in consultation with the
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1 employers, An employer under this Section shall solicit
2 proposals to participate in the program from insurance and
3 annuity companies and mutual fund companies authorized to do
4 conduct such business in this State. In reviewing the
5 proposals received and approving and contracting with no
6 fewer than 2 and no more than 7 companies, at least 2 of
7 which must be insurance and annuity companies, the Board of
8 Trustees of the System deciding to implement a program, the
9 employer shall consider, among other things, the following
10 criteria:
11 (1) the nature and extent of the benefits that
12 would be provided to the participants;
13 (2) the reasonableness of the benefits in relation
14 to the premium charged;
15 (3) the suitability of the benefits to the needs
16 and interests of the participating employees persons and
17 the employer;
18 (4) the ability of the company to provide benefits
19 under the contract and the financial stability of the
20 company; and
21 (5) the efficacy of the contract in the recruitment
22 and retention of employees.
23 An employer that elects to offer an optional retirement
24 program under subsection (c) may only select for
25 participation in the program 2 or more of the companies
26 approved by the Board of Trustees of the System. The System,
27 in consultation with the employers, shall periodically review
28 each approved company; a company may continue to participate
29 in the program only so long as it continues to be an approved
30 company under contract with the Board.
31 (e) System Conflict of Interest. In order to preclude
32 any conflict of interest by the System, only insurance and
33 annuity companies and mutual fund companies that are
34 authorized to do business in this State may be approved, in
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1 accordance with the procedures of subsection (d), to
2 participate in this program and offer investment options for
3 program participants.
4 (f) Account Balance Transfers. Employees who are
5 participating in the program must be allowed to transfer
6 their account balances from the investment options offered by
7 one of the companies selected by the employer to the
8 investment options offered by another company so selected,
9 subject to applicable contractual provisions.
10 (g) (e) Participation. Any eligible employee person
11 employed by an employer may elect to participate in the
12 optional retirement program offered by the employer under
13 subsection (c) that employer's optional retirement program.
14 The election must be made in writing and in the manner
15 prescribed by the System employer. A currently eligible
16 employee person must make take this election within one year
17 after the effective date of the employer's optional
18 retirement program. A newly eligible employee person must
19 make take this election within 60 days after becoming an
20 eligible employee person. A person may make the one-time
21 irrevocable election authorized under this Section or the
22 election authorized under Section 15-154(a-1), but may not
23 make both elections. The employer shall not remit
24 contributions on behalf of a newly eligible employee to
25 either the optional retirement program or to the State
26 Universities Retirement System until the 60-day period has
27 run unless an election by the employee has been made earlier.
28 Any eligible employee person interested in electing the
29 optional retirement program provided under this Section must
30 be given a consultation with the State Universities
31 Retirement System before making that an election.
32 Participation in the optional retirement program shall
33 begin on the first day of the first pay period following the
34 date of election, but no earlier than January 1, 1998 July 1,
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1 1996. The employee's person's participation in any other
2 retirement program administered by the System under this
3 Article the System, if any, with respect to the qualifying
4 employment shall terminate on the date that participation in
5 the optional retirement program begins, and the employee
6 person shall thereby be deemed to have elected to receive a
7 refund of contributions as provided in Section 15-154, except
8 that such deemed refund shall include interest at the
9 effective rate for the respective years, and except that any
10 funds which would have been received shall instead be
11 transferred directly to the optional retirement program as a
12 tax free transfer in accordance with Internal Revenue Service
13 guidelines.
14 Notwithstanding any other provision of this Code, an
15 employee a person may not purchase or receive service or
16 service credit applicable to any other retirement program
17 administered by the System under this Article in this System
18 for any period during which the employee was a participant
19 person was not a participant in the System due to an election
20 to participate in the an optional retirement program
21 established under this Section.
22 An employee A person who has elected to participate in
23 the an optional retirement program under this Section must
24 continue participation while employed in an eligible
25 position, and may not participate in any other retirement
26 program administered by the System under this Article return
27 to participation in this System while employed by that
28 employer, unless the optional retirement program is
29 terminated in accordance with subsection (i) (g).
30 Participation in the optional retirement program under
31 this Section shall constitute membership in the State
32 Universities Retirement System, although a participant under
33 this Section shall not be entitled to receive any benefits
34 under any other provisions of Article 15 or of Article 20.
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1 An employee who receives a disability benefit or a retirement
2 benefit under this Section or an employee who receives a lump
3 sum distribution from a mutual fund company under this
4 Section and uses the lump sum to purchase an annuity shall be
5 considered an employee or an annuitant under Article 15 for
6 purposes of the State Employees Group Insurance Act of 1971.
7 Participation in the optional retirement program under this
8 Section creates a contractual relationship with respect to
9 the investment of the employee's account balance between the
10 employee and the company providing the investment options for
11 the employee's account balance. Participation does not
12 create a contractual relationship between the employee and
13 the System or between the employee and his or her employer.
14 Participation in an optional retirement program
15 established under this Section does not constitute membership
16 or participation in the State Universities Retirement System
17 or any other pension fund or retirement system of the State.
18 Participation in an optional retirement program established
19 under this Section creates a contractual relationship only
20 between the person and the company providing the optional
21 retirement program, and not between the person and the System
22 or the person's employer.
23 (h) (f) Contributions. The contribution rate for
24 employees persons participating in the an optional retirement
25 program under this Section shall be equal to the employee
26 contribution rate for other participants in the System. This
27 required contribution may be made as an "employer pick-up"
28 under Section 414(h) of the Internal Revenue Code of 1986 or
29 any successor Section. Any employee person participating in
30 the System or who elects to participate in the optional
31 retirement program shall continue to have the employer
32 "pick-up" the contribution. However, amounts picked up after
33 the election of the optional retirement program shall be
34 remitted to the optional retirement plan. In no event shall
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1 an employee have an option of receiving these amounts in
2 cash. The program shall provide for employer contributions
3 at a rate of no more than 7.6% of the participating
4 employee's person's salary. The An optional retirement
5 program shall be funded by contributions from employees
6 persons participating in the program and employer
7 contributions as required by the plan. The plan shall be
8 funded in a manner consistent with the requirements of the
9 Internal Revenue Code Section 412, and regulations
10 promulgated thereunder, and Proposed Regulation 412(b)-1(a)
11 as that Section applies those Sections apply to money
12 purchase plans.
13 The State of Illinois shall make contributions by
14 appropriations to the System of the employer contributions
15 required for employees who participate in the optional
16 retirement program under this Section. The amount required
17 shall be certified by the Board of Trustees of the System and
18 paid by the State in accordance with Section 15-165. The
19 System shall not be obligated to remit the required employer
20 contributions to any insurance and annuity and mutual fund
21 companies participating in the optional retirement program
22 under subsection (d) until it has received the required
23 employer contributions from the State. In the event of a
24 deficiency in the amount of State contributions, the System
25 shall implement those procedures described in subsection (c)
26 of Section 15-165 to obtain the required funding from the
27 General Revenue Fund.
28 The contributions and interest thereon, and any benefits
29 based upon them, shall be treated as provided in the funding
30 vehicles for this plan. An amount of up to 1% of each
31 participating employee's participant's salary shall may be
32 taken from the employer contribution to the optional
33 retirement program and shall may be contributed, on the
34 employee's participant's behalf, to a plan which the System
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1 offers employer sets up to provide for life or disability
2 benefits.
3 (i) (g) Termination. An optional retirement program
4 authorized established under this Section may be terminated
5 by the employer, subject to the terms of any relevant
6 contracts, and the employer shall have no obligation to
7 reestablish an optional retirement renew any contract or
8 program established under this Section. This Section does
9 not create a right to continued continue participation in any
10 optional retirement program set up by an employer established
11 under this Section. If an optional retirement program is
12 terminated, the participants shall have the right to
13 participate in one of the other retirement programs offered
14 by the System and receive service credit in such other
15 retirement program for any years of employment following the
16 termination.
17 (j) (h) Vesting. Employer contributions shall be vested
18 after five years of employment. If an employee a participant
19 terminates employment prior to completing five years of
20 service, the employee participant shall be entitled to a
21 benefit in accordance with the terms of the employer's
22 retirement plan which is based on the accumulation value
23 attributable to the employee's participant's contributions
24 and any investment return experience thereon. Benefits for
25 employees participants who terminate with at least five years
26 of service shall be in accordance with the terms of the
27 optional employer's retirement plan and based on the
28 accumulation value attributable to both the employer and the
29 employee's participant's contributions and any investment
30 return experience thereon. Any employer contributions which
31 are forfeited shall be held in escrow by the funding company
32 investing those contributions and shall be used to reduce the
33 next premium payment due from the employer.
34 (Source: P.A. 89-430, eff. 12-15-95.)
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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 optional retirement program
33 established under Section 15-158.2. Payments shall be
34 applied second toward the employer's portion of the normal
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1 costs of the System, as defined in subsection (f) of Section
2 15-155. The balance shall be applied toward the unfunded
3 actuarial liabilities of the 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 optional retirement program established under Section
8 15-158.2 and to fully fund that portion of the employer's
9 portion of the normal costs of the System, as calculated in
10 accordance with Section 15-155(a-1), then any payments
11 received shall be applied proportionately to the optional
12 retirement program established under Section 15-158.2 and to
13 the employer's portion of the normal costs of the System, as
14 calculated in accordance with Section 15-155(a-1).
15 (Source: P.A. 88-593, eff. 8-22-94.)
16 (40 ILCS 5/15-185) (from Ch. 108 1/2, par. 15-185)
17 Sec. 15-185. Annuities, etc., exempt. The accumulated
18 employee and employer contributions shall be held in trust
19 for each participant and annuitant, and this trust shall be
20 treated as a spendthrift trust. Except as provided in this
21 Article, all cash, securities and other property of this
22 system, all annuities and other benefits payable under this
23 Article and all accumulated credits of participants and
24 annuitants in this system and the right of any person to
25 receive an annuity or other benefit under this Article, or a
26 refund of contributions, shall not be subject to judgment,
27 execution, garnishment, attachment, or other seizure by
28 process, in bankruptcy or otherwise, nor to sale, pledge,
29 mortgage or other alienation, and shall not be assignable.
30 The board, however, may deduct from the benefits, refunds and
31 credits payable to the participant, annuitant or beneficiary,
32 amounts owed by the participant or annuitant to the system.
33 No attempted sale, transfer or assignment of any benefit,
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1 refund or credit shall prevent the right of the board to make
2 the deduction and offset authorized in this Section. Any
3 participant or annuitant may authorize the board to deduct
4 from disability benefits or annuities, premiums due under any
5 group hospital-surgical insurance program which is sponsored
6 or approved by any employer; however, the deductions from
7 disability benefits may not begin prior to 6 months after the
8 disability occurs.
9 A person receiving an annuity or benefit under this
10 Article may authorize withholding from that annuity or
11 benefit in accordance with the provisions of the State Salary
12 and Annuity Withholding Act.
13 This amendatory Act of 1989 is a clarification of
14 existing law and shall be applicable to every participant and
15 annuitant without regard to whether status as an employee
16 terminates before the effective date of this amendatory Act
17 of 1989.
18 (Source: P.A. 86-273; 86-1488.)
19 (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
20 (Text of Section before amendment by P.A. 89-507)
21 Sec. 16-106. Teacher. "Teacher": The following
22 individuals, provided that, for employment prior to July 1,
23 1990, they are employed on a full-time basis, or if not
24 full-time, on a permanent and continuous basis in a position
25 in which services are expected to be rendered for at least
26 one school term:
27 (1) Any educational, administrative, professional
28 or other staff employed in the public common schools
29 included within this system in a position requiring
30 certification under the law governing the certification
31 of teachers;
32 (2) Any educational, administrative, professional
33 or other staff employed in any facility of the Department
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1 of Children and Family Services, the Department of Mental
2 Health and Developmental Disabilities, or the Department
3 of Rehabilitation Services, in a position requiring
4 certification under the law governing the certification
5 of teachers, and any person who (i) works in such a
6 position for the Department of Corrections, (ii) was a
7 member of this System on May 31, 1987, and (iii) did not
8 elect to become a member of the State Employees'
9 Retirement System pursuant to Section 14-108.2 of this
10 Code;
11 (3) Any regional superintendent of schools,
12 assistant regional superintendent of schools, State
13 Superintendent of Education; any person employed by the
14 State Board of Education as an executive; any executive
15 of the boards engaged in the service of public common
16 school education in school districts covered under this
17 system of which the State Superintendent of Education is
18 an ex-officio member;
19 (4) Any employee of a school board association
20 operating in compliance with Article 23 of the School
21 Code who is certificated under the law governing the
22 certification of teachers;
23 (5) Any person employed by the retirement system as
24 an executive, and any person employed by the retirement
25 system who is certificated under the law governing the
26 certification of teachers;
27 (6) Any educational, administrative, professional
28 or other staff employed by and under the supervision and
29 control of a regional superintendent of schools, provided
30 such employment position requires the person to be
31 certificated under the law governing the certification of
32 teachers and is in an educational program serving 2 or
33 more districts in accordance with a joint agreement
34 authorized by the School Code or by federal legislation;
SB665 Enrolled -129- LRB9000602EGfg
1 (7) Any educational, administrative, professional
2 or other staff employed in an educational program
3 serving 2 or more school districts in accordance with a
4 joint agreement authorized by the School Code or by
5 federal legislation and in a position requiring
6 certification under the laws governing the certification
7 of teachers;
8 (8) Any officer or employee of a statewide teacher
9 organization or officer of a national teacher
10 organization who is certified under the law governing
11 certification of teachers, provided: (i) the individual
12 had previously established creditable service under this
13 Article, (ii) the individual files with the system, on or
14 before January 1, 1990, an irrevocable election to become
15 a member, and (iii) the individual does not receive
16 credit for such service under any other Article of this
17 Code;
18 (9) Any educational, administrative, professional,
19 or other staff employed in a charter school operating in
20 compliance with the Charter Schools Law who is
21 certificated under the law governing the certification of
22 teachers.
23 An annuitant receiving a retirement annuity under this
24 Article or under Article 17 of this Code who is temporarily
25 employed by a board of education or other employer not
26 exceeding that permitted under Section 16-118 is not a
27 "teacher" for purposes of this Article. A person who has
28 received a single-sum retirement benefit under Section
29 16-136.4 of this Article is not a "teacher" for purposes of
30 this Article.
31 (Source: P.A. 89-450, eff. 4-10-96.)
32 (Text of Section after amendment by P.A. 89-507)
33 Sec. 16-106. Teacher. "Teacher": The following
34 individuals, provided that, for employment prior to July 1,
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1 1990, they are employed on a full-time basis, or if not
2 full-time, on a permanent and continuous basis in a position
3 in which services are expected to be rendered for at least
4 one school term:
5 (1) Any educational, administrative, professional
6 or other staff employed in the public common schools
7 included within this system in a position requiring
8 certification under the law governing the certification
9 of teachers;
10 (2) Any educational, administrative, professional
11 or other staff employed in any facility of the Department
12 of Children and Family Services or the Department of
13 Human Services, in a position requiring certification
14 under the law governing the certification of teachers,
15 and any person who (i) works in such a position for the
16 Department of Corrections, (ii) was a member of this
17 System on May 31, 1987, and (iii) did not elect to become
18 a member of the State Employees' Retirement System
19 pursuant to Section 14-108.2 of this Code;
20 (3) Any regional superintendent of schools,
21 assistant regional superintendent of schools, State
22 Superintendent of Education; any person employed by the
23 State Board of Education as an executive; any executive
24 of the boards engaged in the service of public common
25 school education in school districts covered under this
26 system of which the State Superintendent of Education is
27 an ex-officio member;
28 (4) Any employee of a school board association
29 operating in compliance with Article 23 of the School
30 Code who is certificated under the law governing the
31 certification of teachers;
32 (5) Any person employed by the retirement system as
33 an executive, and any person employed by the retirement
34 system who is certificated under the law governing the
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1 certification of teachers;
2 (6) Any educational, administrative, professional
3 or other staff employed by and under the supervision and
4 control of a regional superintendent of schools, provided
5 such employment position requires the person to be
6 certificated under the law governing the certification of
7 teachers and is in an educational program serving 2 or
8 more districts in accordance with a joint agreement
9 authorized by the School Code or by federal legislation;
10 (7) Any educational, administrative, professional
11 or other staff employed in an educational program
12 serving 2 or more school districts in accordance with a
13 joint agreement authorized by the School Code or by
14 federal legislation and in a position requiring
15 certification under the laws governing the certification
16 of teachers;
17 (8) Any officer or employee of a statewide teacher
18 organization or officer of a national teacher
19 organization who is certified under the law governing
20 certification of teachers, provided: (i) the individual
21 had previously established creditable service under this
22 Article, (ii) the individual files with the system, on or
23 before January 1, 1990, an irrevocable election to become
24 a member, and (iii) the individual does not receive
25 credit for such service under any other Article of this
26 Code;
27 (9) Any educational, administrative, professional,
28 or other staff employed in a charter school operating in
29 compliance with the Charter Schools Law who is
30 certificated under the law governing the certification of
31 teachers.
32 An annuitant receiving a retirement annuity under this
33 Article or under Article 17 of this Code who is temporarily
34 employed by a board of education or other employer not
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1 exceeding that permitted under Section 16-118 is not a
2 "teacher" for purposes of this Article. A person who has
3 received a single-sum retirement benefit under Section
4 16-136.4 of this Article is not a "teacher" for purposes of
5 this Article.
6 (Source: P.A. 89-450, eff. 4-10-96; 89-507, eff. 7-1-97;
7 revised 10-3-96.)
8 (40 ILCS 5/16-140) (from Ch. 108 1/2, par. 16-140)
9 Sec. 16-140. Survivors' benefits - definitions. For the
10 purpose of Sections 16-138 through 16-143.2, the following
11 terms shall have the following meanings, unless the context
12 otherwise requires:
13 (1) "Average salary": the average salary for the highest
14 4 consecutive years within the last 10 years of creditable
15 service immediately preceding date of death or retirement,
16 whichever is applicable, or the average salary for the total
17 creditable service if service is less than 4 years.
18 (2) "Member": any teacher included in the membership of
19 the system. However, a teacher who becomes an annuitant of
20 the system or a teacher whose services terminate after 20
21 years of service from any cause other than retirement is
22 considered a member, subject to the conditions and
23 limitations stated in this Article.
24 (3) "Dependent beneficiary": (A) a surviving spouse of a
25 member or annuitant who was married to the member or
26 annuitant for the 12 month period immediately preceding and
27 on the date of death of such member or annuitant, except
28 where a child is born of such marriage, in which case the
29 qualifying period shall not be applicable; (A-1) a surviving
30 spouse of a member or annuitant who (i) was married to the
31 member or annuitant on the date of the member or annuitant's
32 death, (ii) was married to the member or annuitant for a
33 period of at least 12 months (but not necessarily the 12
SB665 Enrolled -133- LRB9000602EGfg
1 months immediately preceding the member or annuitant's
2 death), (iii) first applied for a survivor's benefit before
3 January 1, 1994, and (iv) has not received a benefit under
4 subsection (a) of Section 16-141 or paragraph (1) of Section
5 16-142; (B) an eligible child of a member or annuitant; and
6 (C) a dependent parent.
7 Unless otherwise designated by the member, eligibility
8 for benefits shall be in the order named, except that a
9 dependent parent shall be eligible only if there is no other
10 dependent beneficiary. Any benefit to be received by or paid
11 to a dependent beneficiary to be determined under this
12 paragraph as provided in Sections 16-141 and 16-142 may be
13 received by or paid to a trust established for such dependent
14 beneficiary if such dependent beneficiary is living at the
15 time such benefit would be received by or paid to such trust.
16 (4) "Eligible child": an unmarried natural or adopted
17 child of the member or annuitant under age 18 (age 22 if a
18 full-time student). An unmarried natural or adopted child,
19 regardless of age, who is dependent by reason of a physical
20 or mental disability, except any such child receiving
21 benefits under Article III of the Illinois Public Aid Code,
22 is eligible for so long as such physical or mental disability
23 continues. An adopted child, however, is eligible only if
24 the proceedings for adoption were finalized while the child
25 was a minor.
26 For purposes of this subsection, "disability" means an
27 inability to engage in any substantial gainful activity by
28 reason of any medically determinable physical or mental
29 impairment which can be expected to result in death or which
30 has lasted or can be expected to last for a continuous period
31 of not less than 12 months.
32 The changes made to this Section by this amendatory Act
33 of 1997, relating to benefits for certain unmarried children
34 who are full-time students under age 22, apply without regard
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1 to whether the deceased member was in service on or after the
2 effective date of this amendatory Act of 1997. These changes
3 do not authorize the repayment of a refund or a re-election
4 of benefits, and any benefit or increase in benefits
5 resulting from these changes is not payable retroactively for
6 any period before the effective date of this amendatory Act
7 of 1997.
8 (5) "Dependent parent": a parent who was receiving at
9 least 1/2 of his or her support from a member or annuitant
10 for the 12-month period immediately preceding and on the date
11 of such member's or annuitant's death, provided however, that
12 such dependent status terminates upon a member's acceptance
13 of a refund for survivor benefit contributions as provided
14 under Section 16-142.
15 (6) "Non-dependent beneficiary": any person,
16 organization or other entity designated by the member who
17 does not qualify as a dependent beneficiary.
18 (7) "In service": the condition of a member being in
19 receipt of salary as a teacher at any time within 12 months
20 immediately before his or her death, being on leave of
21 absence for which the member, upon return to teaching, would
22 be eligible to purchase service credit under subsection
23 (b)(5) of Section 16-127, or being in receipt of a disability
24 or occupational disability benefit. This term does not
25 include any annuitant or member who previously accepted a
26 refund of survivor benefit contributions under paragraph (1)
27 of Section 16-142 unless the conditions specified in
28 subsection (b) of Section 16-143.2 are met.
29 (Source: P.A. 89-430, eff. 12-15-95.)
30 (40 ILCS 5/16-143) (from Ch. 108 1/2, par. 16-143)
31 Sec. 16-143. Survivors' benefits - other conditions and
32 limitations. The benefits provided under Sections 16-141 and
33 16-142, shall be subject to the following further conditions
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1 and limitations:
2 (1) The period during which a member was in receipt of a
3 disability or occupational disability benefit shall be
4 considered as creditable service at the annual salary rate on
5 which the member last made contributions.
6 (2) All service prior to July 24, 1959, for which
7 creditable service is granted towards a retirement annuity
8 shall be considered as creditable service.
9 (3) No benefits shall be payable unless a member, or a
10 disabled member, returning to service, has made contributions
11 to the system for at least one month after July 24, 1959,
12 except that an annuitant must have contributed to the system
13 for at least 1 year of creditable service after July 24,
14 1959.
15 (4) Creditable service under the State Employees'
16 Retirement System of Illinois, the State Universities
17 Retirement System and the Public School Teachers' Pension and
18 Retirement Fund of Chicago shall be considered in determining
19 whether the member has met the creditable service
20 requirement.
21 (5) If an eligible beneficiary qualifies for a
22 survivors' benefit because of pension credits established by
23 the participant or annuitant in another system covered by
24 Article 20, and the combined survivors' benefits exceed the
25 highest survivors' benefit payable by either system based
26 upon the combined pension credits, the survivors' benefit
27 payable by this system shall be reduced to that amount which
28 when added to the survivors' benefit payable by the other
29 system would equal this highest survivors' benefit. If the
30 other system has a similar provision for adjustment of the
31 survivors' benefit, the respective proportional survivors'
32 benefits shall be reduced proportionately according to the
33 ratio which the amount of each proportional survivors'
34 benefit bears to the aggregate of all proportional survivors'
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1 benefits. If a survivors' benefit is payable by another
2 system covered by Article 20, and the survivor elects to
3 waive the monthly survivors' benefit and accept a lump sum
4 payment or death benefit in lieu of the monthly survivors'
5 benefit, this system shall, for the purpose of adjusting the
6 monthly survivors' benefit under this paragraph, assume that
7 the survivor had been entitled to a monthly survivors'
8 benefit which, in accordance with actuarial tables of this
9 system, is the actuarial equivalent of the amount of the lump
10 sum payment or death benefit.
11 (6) Remarriage of a surviving spouse prior to attainment
12 of age 55 shall terminate his or her survivors' benefits.
13 (7) The benefits payable to an eligible child shall
14 terminate when the eligible child marries, dies, or attains
15 age 18 (age 22 if a full-time student); except that benefits
16 payable to a dependent disabled eligible child shall
17 terminate only when the eligible child dies or ceases to be
18 disabled.
19 (Source: P.A. 86-1488.)
20 (40 ILCS 5/16-151) (from Ch. 108 1/2, par. 16-151)
21 Sec. 16-151. Refund. Upon termination of employment as a
22 teacher for any cause other than death or retirement, a
23 member shall be paid the following amount upon demand made at
24 least not previous to 4 months after ceasing to teach:
25 (1) from the Members' Contribution Reserve, the
26 actual total contributions paid by or on behalf of the
27 member for membership service which have not been
28 previously refunded and which are then credited to the
29 member's individual account in the Members' Contribution
30 Reserve, without interest thereon, and
31 (2) from the Employer's Contribution Reserve, the
32 actual contributions not previously refunded, paid by or
33 on behalf of the member for prior service and towards the
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1 cost of the automatic annual increase in retirement
2 annuity as provided under Section 16-152, without
3 interest thereon.
4 Any such amounts may be paid to the member either in one
5 sum or, at the election of the board, in 4 quarterly
6 payments.
7 Contributions credited to a member for periods of
8 disability as provided in Sections 16-149 and 16-149.1 are
9 not refundable.
10 Upon acceptance of a refund, all accrued rights and
11 credits in the System are forfeited and may be reinstated
12 only if the refund is repaid together with interest from the
13 date of the refund to the date of repayment at the following
14 rates compounded annually: for periods prior to July 1,
15 1965, regular interest; for periods from July 1, 1965 to June
16 30, 1977, 4% per year; for periods on and after July 1, 1977,
17 regular interest. Repayment shall be permitted upon return to
18 membership; however, service credit previously forfeited by a
19 refund and subsequently reinstated may not be used as a basis
20 for the payment of benefits, other than a refund of
21 contributions, prior to the completion of one year of
22 creditable service following the refund, except when
23 repayment is permitted under the provisions of the
24 "Retirement Systems Reciprocal Act" contained in Article 20.
25 (Source: P.A. 83-1440.)
26 (40 ILCS 5/16-152.1) (from Ch. 108 1/2, par. 16-152.1)
27 Sec. 16-152.1. Pickup Pick up of contributions.
28 (a) Each employer may pick up the member contributions
29 required under Section 16-152 for all salary earned after
30 December 31, 1981. If an employer decides not to pick up the
31 member contributions, the amount that would have been picked
32 up shall continue to be deducted from salary. If
33 contributions are picked up, they shall be treated as
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1 employer contributions in determining tax treatment under the
2 United States Internal Revenue Code. The employer shall pay
3 these member contributions from the same source of funds
4 which is used in paying salary to the member. The employer
5 may pick up these contributions by a reduction in the cash
6 salary of the member or by an offset against a future salary
7 increase or by a combination of a reduction in salary and
8 offset against a future salary increase. If member
9 contributions are picked up, they shall be treated for all
10 purposes of this Article 16 in the same manner as member
11 contributions made prior to the date the pick up began.
12 (b) The State Board of Education shall pick up the
13 contributions of regional superintendents required under
14 Section 16-152 for all salary earned for the 1982 calendar
15 year and thereafter.
16 (c) Effective July 1, 1983, each employer shall pick up
17 the member contributions required under Section 16-152 for
18 all salary earned after such date. Contributions so picked
19 up shall be treated as employer contributions in determining
20 tax treatment under the United States Internal Revenue Code.
21 The employer shall pay these member contributions from the
22 same source of funds which is used in paying salary to the
23 member. The employer may pick up these contributions by a
24 reduction in the cash salary of the member or by an offset
25 against a future salary increase or by a combination of a
26 reduction in salary and offset against a future salary
27 increase. Member contributions so picked up shall be treated
28 for all purposes of this Article 16 in the same manner as
29 member contributions made prior to the date the pick up
30 began.
31 (d) Subject to the requirements of federal law and the
32 rules of the board, beginning July 1, 1998 a member who is
33 employed on a full-time basis may elect to have the employer
34 pick up optional contributions that the member has elected to
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1 pay to the System, and the contributions so picked up shall
2 be treated as employer contributions for the purposes of
3 determining federal tax treatment. The election to have
4 optional contributions picked up is irrevocable. At the time
5 of making the election, the member shall execute a binding,
6 irrevocable payroll deduction authorization. Upon receiving
7 notice of the election, the employer shall pick up the
8 contributions by a reduction in the cash salary of the member
9 and shall pay the contributions from the same source of funds
10 that is used to pay earnings to the member.
11 (Source: P.A. 83-1440.)
12 (40 ILCS 5/16-154) (from Ch. 108 1/2, par. 16-154)
13 Sec. 16-154. Deductions from salary.
14 (a) Required contributions. The governing body of each
15 school district and of each employing unit State institution
16 coming under this System, and the State Comptroller or other
17 State officer certifying payroll vouchers, including payments
18 of salary or wages to teachers, shall pick up or retain on
19 every pay day the contributions required under Section 16-152
20 of each member. Each governing body or officer shall furnish
21 a statement to each member showing the amount picked up or
22 retained from his or her salary.
23 (b) Optional contributions. For the purposes of this
24 Section and Section 16-152.1, "optional contributions" means
25 contributions that a member elects to make in order to
26 establish optional service credit or to reinstate creditable
27 service that was terminated upon payment of a refund.
28 The governing body of each school district and of each
29 employing unit coming under this System and the State
30 Comptroller or other State officer certifying payroll
31 vouchers shall take the steps necessary to comply with the
32 requirements of Section 414(h)(2) of the Internal Revenue
33 Code of 1986, as amended, to permit the pickup of optional
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1 contributions on a tax-deferred basis. Beginning July 1,
2 1998, a school district or other employing unit shall not
3 withhold optional contributions from the salary of any member
4 on an after-tax basis.
5 (Source: P.A. 83-1440.)
6 (40 ILCS 5/16-155) (from Ch. 108 1/2, par. 16-155)
7 Sec. 16-155. Report to system and payment of deductions.
8 (a) The governing body of each school district shall
9 make two deposits each month. The deposit for member
10 contributions for salary paid between the first and the
11 fifteenth of the month is due by the 25th of the month. The
12 deposit of member contributions for salary paid between the
13 sixteenth and last day of the month is due by the 10th of the
14 following month. All required contributions for salary
15 earned during a school term are due by July 10 next following
16 the close of such school term.
17 The governing body of each State institution coming under
18 this retirement system, the State Comptroller or other State
19 officer certifying payroll vouchers including payments of
20 salary or wages to teachers, and any other employer of
21 teachers, shall, monthly, forward to the secretary of the
22 retirement system the member contributions required under
23 this Article.
24 Each employer specified above shall, prior to August 15
25 of each year, forward to the System a detailed statement,
26 verified in all cases of school districts by the secretary or
27 clerk of the district, of the amounts so contributed since
28 the period covered by the last previous annual statement,
29 together with required contributions not yet forwarded, such
30 payments being payable to the System.
31 The board may prescribe rules governing the form,
32 content, investigation, control, and supervision of such
33 statements. The governing body of each school district
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1 shall, at the same time, send a copy of the statement to the
2 regional superintendent of schools for the region in which
3 the district under its control is located. If no teacher in
4 a school district comes under the provisions of this Article,
5 the governing body of the district shall so state under the
6 oath of its secretary to this system, and shall at the same
7 time forward a copy of the statement to the regional
8 superintendent of schools.
9 (b) If the governing body of an employer that is not a
10 State agency a school district fails to forward such required
11 contributions within the time permitted in subsection (a)
12 above, the System shall notify the employer district of an
13 additional amount due, equal to the greater of the following:
14 (1) an amount representing the interest lost by the system
15 due to late forwarding of contributions, calculated for the
16 number of days which the employer school district is late in
17 forwarding contributions at a rate of interest prescribed by
18 the board, based on its investment experience; or (2) $50.
19 (c) If the system, on August 15, is not in receipt of
20 the detailed statements required under this Section of any
21 school district or other employing unit, such school district
22 or other employing unit shall pay to the system an amount
23 equal to $250 for each day that elapses from August 15, until
24 the day such statement is filed with the system.
25 (Source: P.A. 86-273.)
26 (40 ILCS 5/16-158.1) (from Ch. 108 1/2, par. 16-158.1)
27 Sec. 16-158.1. Actions to enforce payments by school
28 districts and other employing units. Any school district or
29 other employing unit failing to transmit to the System
30 contributions required of it under this Article or
31 contributions required of teachers, for more than 90 days
32 after such contributions are due is subject to the following:
33 after giving notice to the district or other unit, the System
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1 may certify to the State Comptroller or the Regional
2 Superintendent of Schools the amounts of such delinquent
3 payments and the State Comptroller or the Regional
4 Superintendent of Schools shall deduct the amounts so
5 certified or any part thereof from any grants of State funds
6 to be remitted to the school district or other employing unit
7 involved and shall pay the amount so deducted to the System.
8 If State funds from which such deductions may be made are not
9 available, the System may proceed against the school district
10 or other employing unit to recover the amounts of such
11 delinquent payments in the appropriate circuit court.
12 The System may provide for an audit of the records of a
13 school district or other employing unit as may be required to
14 establish the amounts of required contributions. The school
15 district or other employing unit shall make its records
16 available to the System for the purpose of such audit. The
17 cost of such audit shall be added to the amount of the
18 delinquent payments and shall be recovered by the System from
19 the school district or other employing unit at the same time
20 and in the same manner as the delinquent payments are
21 recovered.
22 (Source: P.A. 85-1008.)
23 (40 ILCS 5/16-169.1 new)
24 Sec. 16-169.1. Testimony and the production of records.
25 The secretary of the Board shall have the power to issue
26 subpoenas to compel the attendance of witnesses and the
27 production of documents and records, including law
28 enforcement records maintained by law enforcement agencies,
29 in conjunction with a disability claim, administrative review
30 proceeding, or felony forfeiture investigation. The fees of
31 witnesses for attendance and travel shall be the same as the
32 fees of witnesses before the circuit courts of this State and
33 shall be paid by the party seeking the subpoena. The Board
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1 may apply to any circuit court in the State for an order
2 requiring compliance with a subpoena issued under this
3 Section. Subpoenas issued under this Section shall be
4 subject to applicable provisions of the Code of Civil
5 Procedure.
6 (40 ILCS 5/16-179) (from Ch. 108 1/2, par. 16-179)
7 Sec. 16-179. To be trustee of reserves and to invest
8 funds. To be the trustee of the reserves created under this
9 Article, and to invest and reinvest such reserves, subject to
10 the requirements and restrictions set forth in Sections
11 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114 and 1-115.
12 No bank or savings and loan association shall receive
13 investment funds as permitted by this Section, unless it has
14 complied with the requirements established pursuant to
15 Section 6 of "An Act relating to certain investments of
16 public funds by public agencies", approved July 23, 1943, as
17 now or hereafter amended. The limitations set forth in such
18 Section 6 shall be applicable only at the time of investment
19 and shall not require the liquidation of any investment at
20 any time.
21 The board shall have the authority to enter into such
22 agreements and to execute such documents as it determines to
23 be necessary to complete any investment transaction.
24 All investments shall be clearly held and accounted for
25 to indicate ownership by the system. The board may direct
26 the registration of securities or the holding in interests in
27 real property in the name of the system or in the name of a
28 nominee created for the express purpose of registration of
29 securities or holding interests in real property by a
30 national or state bank or trust company authorized to conduct
31 a trust business in the State of Illinois. The board may
32 hold title to interests in real property in the name of the
33 system or in the name of a title holding corporation created
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1 for the express purpose of holding title to interests in real
2 property.
3 Investments shall be carried at cost or at a book value
4 determined in accordance with generally accepted accounting
5 principles. No adjustments shall be made in investment
6 carrying values for ordinary current market price
7 fluctuations; but reserves may be provided to account for
8 possible losses or unrealized gains.
9 The book value of investments held by the retirement
10 system in one or more commingled investment accounts shall be
11 the cost of its units of participation in such commingled
12 account or accounts.
13 (Source: P.A. 86-272.)
14 (40 ILCS 5/16-181.3 new)
15 Sec. 16-181.3. To prescribe the manner of payment. To
16 prescribe by rule the manner of repaying refunds and
17 purchasing the various optional service credits permitted
18 under this Article. The rules may prescribe the conditions
19 under which installment payments or partial payments may be
20 accepted and may specify the method of computing any interest
21 due.
22 (40 ILCS 5/16-185) (from Ch. 108 1/2, par. 16-185)
23 Sec. 16-185. Employer's contribution reserve.
24 (a) The Employer's Contribution Reserve shall serve as a
25 clearing account for income and expenses of the System as
26 well as transfers to and from the other reserve accounts
27 established under this Article and adjustments thereto.
28 (b) This reserve shall be credited with:
29 (1) All amounts contributed by the State, except
30 those credited to other reserve accounts as provided in
31 this Article.
32 (2) The total member and employer contributions
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1 except those required by other reserve accounts.
2 (3) The total income from invested assets of the
3 System, and other miscellaneous income.
4 (4) The interest portion of the accumulated
5 contributions of members granted refunds.
6 (5) Contributions made by annuitants to qualify for
7 automatic annual increases in annuity, except those
8 required by other reserve accounts.
9 (c) This reserve shall be charged with:
10 (1) All amounts necessary to be transferred to the
11 Members' Contribution Reserve.
12 (2) All retirement annuity, single-sum retirement
13 benefit and disability retirement annuity payments,
14 including automatic annual increases in annuities, except
15 as provided by other reserve accounts.
16 (3) All amounts necessary to be refunded to
17 withdrawing members except as provided by the Members'
18 Contribution Reserve.
19 (4) All benefits paid to temporarily or
20 accidentally disabled members of this System, and all
21 amounts credited to the accounts of such disabled members
22 in lieu of contributions.
23 (5) All amounts payable as death benefits except as
24 provided by the Members' Contribution Reserve.
25 (6) All amounts necessary for the payment of costs
26 for the health insurance program as provided under this
27 Article.
28 (7) All survivor benefit contributions refunded to
29 an annuitant as provided under Section 16-143.2.
30 (8) All amounts paid in accordance with Section
31 16-131.1 except as provided by the Members' Contribution
32 Reserve.
33 (9) Interest to be credited to other reserve
34 accounts as specified in this Article.
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1 (10) Recognition of unrealized gains or losses in
2 market value, upon adoption of generally accepted
3 accounting principles that allow for such recognition.
4 (Source: P.A. 88-593, eff. 8-22-94; 89-235, eff. 8-4-95.)
5 (40 ILCS 5/16-187) (from Ch. 108 1/2, par. 16-187)
6 Sec. 16-187. Custodian of fund - warrants and vouchers -
7 audits. (a) The State Treasurer is ex-officio custodian of
8 the funds of the retirement system. He or she may process
9 payments from the funds of the system for the purposes herein
10 specified upon warrants or direct deposit transmittals of the
11 State Comptroller. Commencing January 1, 1987, the State
12 Treasurer shall credit interest, at current rates, for any
13 monies directly held. Such interest shall be calculated
14 using an average daily cash basis. He or she shall be liable
15 on the Treasurer's official bond for the proper performance
16 of duties and be held accountable for all cash and securities
17 in his or her custody. He or she shall keep books and
18 accounts in the manner prescribed by the board, and they
19 shall always be subject to the inspection of the board or any
20 member thereof.
21 (b) The State Comptroller may draw warrants or prepare
22 direct deposit transmittals payable from the fund upon the
23 State Treasurer for the purposes herein provided upon the
24 presentation of vouchers approved by the president and the
25 secretary of the board. The board shall file with the State
26 Comptroller an attested copy of a resolution designating such
27 persons as his authority for making payments upon such
28 vouchers.
29 (c) At the end of each fiscal year, the board shall have
30 the accounts and records of the system audited by a person
31 authorized to practice public accounting under the laws of
32 this state selected by the Auditor General. Copies of all
33 audits performed shall be filed with the State Board of
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1 Education and the Auditor General.
2 (Source: P.A. 85-1008.)
3 (40 ILCS 5/17-116.1) (from Ch. 108 1/2, par. 17-116.1)
4 Sec. 17-116.1. Early retirement without discount. A
5 member retiring after June 1, 1980 and before June 30, 2005
6 1995 and within 6 months of the last day of teaching for
7 which retirement contributions were required, may elect at
8 the time of application to make a one time employee
9 contribution to the system and thereby avoid the early
10 retirement reduction in allowance specified in paragraph (4)
11 of Section 17-116 of this Article. The exercise of the
12 election shall obligate the employer to also make a one time
13 non-refundable contribution to the fund.
14 The one-time employee contribution shall be equal to 7%
15 of the retiring member's highest full-time annual salary rate
16 used in the determination of the average salary rate for
17 retirement pension, or if not full-time then the full-time
18 equivalent, multiplied by (1) the number of years the teacher
19 is under age 60, or (2) the number of years the employee's
20 creditable service is less than 35 years, whichever is less.
21 The employer contribution shall be 20% of such salary
22 multiplied by such number of years.
23 Upon receipt of the application and election, the board
24 shall determine the one time employee and employer
25 contributions. The provisions of this Section shall not be
26 applicable until all the above outlined contributions have
27 been received by the fund; however, the date such
28 contributions are received shall not be considered in
29 determining the effective date of retirement.
30 The number of employees who may retire under this Section
31 in any year may be limited at the option of the employer to a
32 specified percentage of those eligible, not lower than 30%,
33 with the right to participate to be allocated among those
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1 applying on the basis of seniority in the service of the
2 employer.
3 Notwithstanding Section 17-157, the extension of the
4 deadline for early retirement without discount under this
5 Section effected by this amendatory Act of 1997 also applies
6 to persons who withdrew from service on or after June 30,
7 1995 and before the effective date of this amendatory Act of
8 1997. Any such person who qualifies for early retirement
9 without discount under this Section, applies to the Fund
10 within 90 days after the effective date of this amendatory
11 Act of 1997, and pays the required employee contribution may
12 have his or her retirement pension recalculated in accordance
13 with this Section; the resulting increase shall be effective
14 retroactively to the starting date of the retirement pension.
15 (Source: P.A. 86-272.)
16 (40 ILCS 5/17-134.1 new)
17 Sec. 17-134.1. Labor organization employees.
18 (a) A former teacher who is employed by a teacher or
19 labor organization and is not eligible to participate under
20 subdivision (4) of Section 17-134 because he or she is not on
21 a special leave of absence may elect to participate in the
22 Fund for the duration of that employment by so notifying the
23 Fund in writing. Participation shall be subject to the same
24 conditions as are applicable to persons participating under
25 that subdivision (4), and service credit shall be contingent
26 upon the required contributions being received by the Fund.
27 (b) A person who participates in the Fund under
28 subsection (a) may establish service credit for periods of
29 such employment that took place before beginning
30 participation under this Section by submitting a written
31 application to the Fund. Credit shall be granted upon
32 payment to the Fund of an amount to be determined by the
33 Fund, equal to (i) the employee contributions that would have
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1 been paid if the person had participated under subdivision
2 (4) of Section 17-134 during the period for which service
3 credit is to be established, based on the actual salary
4 received, plus (ii) the employer's normal cost associated
5 with that service credit, plus (iii) interest on items (i)
6 and (ii) at the rate of 6% per year, compounded annually,
7 from the date of the service established to the date of
8 payment. Service credit under this subsection shall not be
9 granted until the required contribution has been paid in
10 full; the contribution may be paid at any time before
11 retirement.
12 (c) A person who participates in the Fund under
13 subsection (a) may reestablish any service credits previously
14 forfeited by acceptance of a refund by paying to the Fund the
15 amount of the refund plus interest thereon at the rate of 5%
16 per annum, compounded annually, from the date of the refund
17 to the date of payment.
18 (d) Rollover contributions from other retirement plans
19 qualified under the Internal Revenue Code of 1986 may be used
20 to make the payments required under subsections (b) and (c).
21 (e) No service credit may be established under this
22 Section for any period of employment for which the person
23 receives service credit under any other provision of this
24 Code.
25 (40 ILCS 5/18-112.6 new)
26 Sec. 18-112.6. Service credit for member of educational
27 board. Until July 1, 1998, an active participant in this
28 System who has at least 6 years of service as a judge may
29 establish up to 2 years of service credit in this System for
30 a period during which the participant held elective office as
31 a member of a board of education in this State or a member of
32 the board of trustees of a community college district in this
33 State, by applying to the Board in writing and paying to the
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1 System an amount equal to (1) employee contributions based on
2 the rate in effect for a judge on the date of becoming a
3 participant in this System and the salary received by the
4 judge on that date, plus (2) the employer's share of the
5 normal cost of the benefits being established, plus (3)
6 interest thereon at the prescribed rate, compounded annually,
7 from the date of membership to the date of payment. However,
8 credit may not be established under this Section for any
9 period for which the judge has received credit under any
10 other pension fund or retirement system subject to this Code,
11 unless that credit has been terminated.
12 (40 ILCS 5/18-133.1) (from Ch. 108 1/2, par. 18-133.1)
13 Sec. 18-133.1. Pickup Pick up of contributions.
14 (a) Each employer may pick up the participant
15 contributions required under Section 18-133 for all salary
16 earned after December 31, 1981. If an employer decides not
17 to pick up the contributions, the employee contributions
18 shall continue to be deducted from salary. If contributions
19 are picked up they shall be treated as employer contributions
20 in determining tax treatment under the United States Internal
21 Revenue Code. However, the employer shall continue to
22 withhold Federal and State income taxes based upon these
23 contributions until the Internal Revenue Service or the
24 Federal courts rule that pursuant to Section 414(h) of the
25 United States Internal Revenue Code, these contributions
26 shall not be included as gross income of the participant
27 until such time as they are distributed or made available.
28 The employer shall pay these participant contributions from
29 the same source of funds which is used in paying earnings to
30 the participant. The employer may pick up these
31 contributions by a reduction in the cash salary of the
32 participant or by an offset against a future salary increase
33 or by a combination of a reduction in salary and offset
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1 against a future salary increase. If participant
2 contributions are picked up they shall be treated for all
3 purposes of this Article as participant contributions were
4 considered prior to the time they were picked up.
5 (b) Subject to the requirements of federal law, a
6 participant may elect to have the employer pick up optional
7 contributions that the participant has elected to pay to the
8 System, and the contributions so picked up shall be treated
9 as employer contributions for the purposes of determining
10 federal tax treatment. The employer shall pick up the
11 contributions by a reduction in the cash salary of the
12 participant and shall pay the contributions from the same
13 fund that is used to pay earnings to the participant. The
14 election to have optional contributions picked up is
15 irrevocable and the optional contributions may not thereafter
16 be prepaid, by direct payment or otherwise.
17 (Source: P.A. 83-1440.)
18 (40 ILCS 5/21-103) (from Ch. 108 1/2, par. 21-103)
19 Sec. 21-103. Political subdivision - election of
20 coverage.
21 (a) Any political subdivision other than a school
22 district and other than a political subdivision which is
23 participating in the Illinois Municipal Retirement Fund under
24 Article 7 of this Code may, by resolution of the governing
25 body (in the case of a township, at an annual town meeting or
26 at a special town meeting called for that purpose), or by
27 referendum, elect to have its employees covered by the Social
28 Security Act.
29 Whenever a petition requesting Social Security coverage
30 for employees, signed by not less than 5% of the legal voters
31 of the political subdivision, is presented to the governing
32 body, such governing body shall cause such proposition to be
33 certified to the proper election officials who shall submit
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1 the proposition to the voters at the next appropriate
2 election in accordance with the general election law, or in
3 the case of a township at the next annual town meeting if the
4 petition is received more than 15 and less than 60 days
5 before the annual town meeting, or else at a special town
6 meeting called for that purpose. In the territory of the
7 political subdivision every elector may vote upon the
8 proposition stated in the petition. Such proposition shall
9 be in substantially the following form:
10 -------------------------------------------------------------
11 Shall....(political subdivision)
12 enter into a coverage agreement with
13 the Social Security Division of YES
14 the State Employees' Retirement ----------------------
15 System for extension of Federal Social NO
16 Security coverage to employees
17 of....(political subdivision)?
18 -------------------------------------------------------------
19 If a majority of all of the votes cast upon the
20 proposition is in favor thereof, or if the governing body has
21 adopted a resolution or ordinance providing for coverage of
22 its employees, the governing body shall execute the coverage
23 agreement provided by the State Agency and submit such
24 coverage agreement to the State Agency for approval. The
25 coverage agreement shall be approved by the State Agency if
26 it meets the requirements of subsection (b).
27 (b) Each coverage agreement of a political subdivision
28 and any amendment thereof shall be approved by the State
29 Agency if it finds that such coverage agreement, or such
30 coverage agreement as amended, is in conformity with such
31 requirements as are provided in the regulations of the State
32 Agency, except that no such coverage agreement shall be
33 approved unless:
34 (1) it is in conformity with the requirements of
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1 the Social Security Act and with the Federal-State
2 Agreement entered into under this Article;
3 (2) it provides that all services which constitute
4 employment and are performed in the employ of the
5 political subdivision by any employees thereof shall be
6 covered by the coverage agreement, except that such
7 agreement may, if the political subdivision so requests,
8 exclude all services in one or more classes of elective
9 positions, or positions the compensation for which is on
10 a fee basis;
11 (3) it provides for such methods of administration
12 of the coverage agreement by the political subdivision as
13 are found by the State Agency to be necessary for the
14 proper and efficient administration of the coverage
15 agreement; and
16 (4) it provides for an effective date of coverage
17 not earlier than the first day of the fifth calendar year
18 preceding the year in which the resulting modification of
19 the Federal-State Agreement is agreed to by the Secretary
20 and the State.
21 (c) In addition to the requirements in subsection (b),
22 no coverage agreement which provides for an effective date of
23 coverage prior to January 1, 1987 shall be approved unless:
24 (1) it specifies the sources from which the funds
25 required of it by this Article are expected to be
26 derived, and contains reasonable assurance that such
27 sources will be adequate for such purpose;
28 (2) it contains a promise to deliver the proper
29 funds to the State Agency on or before the date requested
30 by the State Agency;
31 (3) it specifies some officer to act as custodian
32 of all funds collected and to be responsible to the State
33 Agency for the delivery of such funds;
34 (4) it provides that the political subdivision
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1 shall pay into the Social Security Contribution Fund
2 contributions on covered wages at such times as the State
3 Agency may by regulations prescribe, in the amounts and
4 at the rates provided by this Article; and
5 (5) it provides that the political subdivision will
6 make such reports as the State Agency may from time to
7 time require, and comply with such provisions as the
8 State Agency or the Secretary may from time to time find
9 necessary.
10 (Source: P.A. 85-442.)
11 (40 ILCS 5/21-109) (from Ch. 108 1/2, par. 21-109)
12 Sec. 21-109. Payment of Contributions.
13 (a) Absolute coverage group: Each political subdivision
14 which has established Social Security coverage for its
15 employees under this Article shall pay into the Social
16 Security Contribution Fund contributions on covered wages
17 paid prior to January 1, 1987 in the amounts and at the rates
18 prescribed by subchapters A and B of the Federal Insurance
19 Contributions Act at the times prescribed in the regulations
20 of the State Agency. Taxes due on wages covered under the
21 Social Security Coverage Agreement paid after December 31,
22 1986 shall be paid by each political subdivision to the
23 Internal Revenue Service in the amounts and at the rates
24 specified in the Federal Insurance Contributions Act and at
25 the times prescribed in the regulations of the Internal
26 Revenue Service.
27 Every political subdivision required to make payments is
28 authorized in consideration of the employee's retention in,
29 or entry upon, employment to impose upon each of its
30 employees, as to services which are covered by the coverage
31 agreement, a contribution with respect to wages computed by
32 applying the rates of contribution prescribed by Subchapter A
33 of the Federal Insurance Contributions Act, and to deduct the
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1 amount of such contribution from such employee's wages when
2 paid.
3 Failure to deduct such contribution shall not relieve the
4 employee or employer of liability therefor.
5 (b) Retirement system coverage group: As a condition of
6 its coverage agreement, the governing body or board of
7 trustees of any retirement system which has adopted Social
8 Security coverage for its members under this Article shall
9 assume responsibility to the State Agency for the compiling
10 of wage data, the collection of related contributions
11 prescribed by subchapters A and B of the Federal Insurance
12 Contributions Act, and the timely reporting and payment of
13 such items upon the wages of all covered employees paid prior
14 to January 1, 1987 in the manner and at the times prescribed
15 by the State Agency.
16 Coincident to the adoption of coverage, the governing
17 body or board of trustees of the retirement system shall
18 promulgate rules and regulations in conformity with federal
19 regulations, applicable to the State or local governmental
20 entities or to the agencies and employees participating
21 therein, to insure the correct application of coverage and
22 the timely and accurate reporting of wages and collection of
23 contributions.
24 In the event of failure by the retirement system or the
25 governmental entities or agencies participating therein to
26 comply with the timely reporting and payment requirements
27 imposed by this Section, the retirement system shall be
28 assessed any federal interest or late filing penalties
29 arising therefrom.
30 The contributions collected under this Section by any
31 retirement system which elects to adopt coverage shall be
32 remitted at such times as the State Agency shall prescribe
33 for deposit into the Social Security Contribution Fund.
34 The employees comprising the executive and administrative
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1 staff of any retirement system which elects to adopt the
2 provisions of this Article shall have the contributions made
3 by the body employing them.
4 (c) If more or less than the correct amount of
5 contributions is paid to the State Agency, proper adjustment,
6 or refund without interest if adjustment is impractical,
7 shall be made in such manner and at such times as the State
8 Agency shall prescribe.
9 (Source: P.A. 85-442.)
10 (40 ILCS 5/21-115) (from Ch. 108 1/2, par. 21-115)
11 Sec. 21-115. Special fund abolished; designation of
12 remittance agents.
13 (a) The Social Security Contribution Fund is abolished
14 at the close of business on June 30, 1997. Any balance then
15 remaining in that Fund shall be transferred to the Social
16 Security Administration Fund created under Section 21-109.1,
17 and any amounts thereafter designated for deposit into the
18 Social Security Contribution Fund shall instead be deposited
19 into the Social Security Administration Fund. There is
20 hereby established a special fund to be known as the Social
21 Security Contribution Fund. Such fund shall consist of and
22 there shall be deposited in such fund (1) all contributions,
23 interest, and penalties collected under this Article, except
24 as provided in subsection (f) of this Section, (2) all sums
25 recovered upon the bond of the custodian or otherwise for
26 losses sustained by the fund, (3) payments of Medicare taxes
27 in accordance with State Agency regulations, and (4) all
28 other moneys received for the fund from any other source. All
29 moneys in the fund shall be mingled and undivided. Subject to
30 the provisions of this Article, the State Agency is vested
31 with full power, authority and jurisdiction over the fund,
32 including all moneys and property or securities belonging
33 thereto, and may perform any and all acts whether or not
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1 specifically designated, which are necessary to the
2 administration thereof.
3 (b) The Social Security Contribution Fund shall be
4 established and held separate and apart from any other funds
5 or moneys of the State of Illinois and shall be used and
6 administered exclusively for the purpose of this Article.
7 Withdrawals from such fund shall be made solely for the
8 following purposes:
9 (1) payment of amounts required to be paid to the
10 Secretary of the Treasury in relation to Social Security and
11 Medicare coverage,
12 (2) payment of refunds for overpayments which are not
13 otherwise adjustable,
14 (3) payment into the General Revenue Fund of the amount
15 by which penalties collected pursuant to Section 21-112 of
16 this Article exceed the federal interest charges for the
17 corresponding period,
18 (4) payment into the General Revenue Fund of the
19 necessary expenses collected for the performance of tax
20 audits for failure to pay contributions pursuant to Section
21 21-113 of this Article,
22 (5) pursuant to recovery of Social Security
23 contributions paid to the Secretary of the Treasury for the
24 period from January 1, 1979 to June 30, 1981 on sick pay
25 excluded from wages pursuant to Section 209(b) of the Social
26 Security Act, (i) payment of a fee to a private vendor,
27 selected by competitive bidding in accordance with The
28 Illinois Purchasing Act, for the performance of all necessary
29 administrative actions required to obtain and distribute such
30 recovery, the fee to be contingent upon the amount of the
31 recovery and determined by contract, (ii) payment to the
32 Secretary of the Treasury of State Social Security
33 contributions for nonpayroll earnings received by court
34 reporters between January 1, 1977 and December 31, 1986, and
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1 (iii) refund to the General Revenue Fund of the remainder of
2 the employer's share of the contributions so recovered,
3 (6) payment of reasonable expenses incurred in locating
4 former State employees for the purpose of refunding the
5 employees' share of Social Security contributions refunded to
6 the State as a result of the State's actions requesting
7 refunds of contributions paid to the Secretary of the
8 Treasury on sick pay as noted in item (5) and on the amount
9 of voluntary salary reductions by State employees
10 participating in the State's cafeteria plan of fringe
11 benefits under Section 125 of the Internal Revenue Code,
12 (7) out of the employer's share of contributions
13 recovered as a result of the State's action to reduce
14 reported wages by the amount of voluntary salary reduction by
15 State employees participating in the State's cafeteria plan
16 of fringe benefits under Section 125 of the Internal Revenue
17 Code, (i) payment to the Secretary of the Treasury of State
18 Social Security contributions for nonpayroll earnings
19 received by court reporters between January 1, 1977 and
20 December 31, 1986, and (ii) payment of the remainder into the
21 General Revenue Fund, and
22 (8) payment into the Social Security Administration Fund
23 established by Section 21-109.1 of this Article to satisfy
24 the State's liability for Social Security and Medicare
25 contribution liability on wages paid after December 31, 1986,
26 and to dispose of any remaining balance in the Social
27 Security Contribution Fund not required to satisfy the
28 State's liability on wages paid prior to January 1, 1987.
29 (c) From the Social Security Contribution Fund the
30 custodian of the fund shall pay to the Secretary of the
31 Treasury such amounts at such times as may be directed by the
32 State Agency.
33 (d) The Treasurer of the State of Illinois shall be
34 ex-officio treasurer and custodian of the Social Security
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1 Contribution Fund and shall administer such fund in
2 accordance with the provisions of this Article and the
3 directions of the State Agency, and shall pay all warrants of
4 the State Comptroller in accordance with the provisions of
5 this Section and with such regulations as the State Agency
6 may prescribe pursuant thereto.
7 (e) The Comptroller of the State of Illinois is
8 authorized and is directed to draw warrants upon the State
9 Treasurer payable from the Social Security Contribution Fund
10 for purposes provided for in this Article upon presentation
11 of vouchers approved by the State Agency.
12 (b) (f) The State Agency is authorized to designate any
13 retirement system which has adopted coverage under this
14 Article to act as remittance agent on behalf of the State
15 Agency and to make payment of the Social Security
16 contributions collected upon the wages of employees within
17 the retirement system coverage group directly to the
18 designated Federal Reserve Bank without the necessity of
19 deposit or clearance of such collections through the Social
20 Security Contribution Fund. Any retirement system so
21 designated as a remittance agent shall continue to be subject
22 to the regulations of the State Agency with respect to
23 coverage determinations, wage reporting, corrective
24 adjustments, and accountability for tax collections in the
25 same manner as any other covered entity.
26 (Source: P.A. 86-272.)
27 Section 25. The State Pension Funds Continuing
28 Appropriation Act is amended by changing Section 1.1 as
29 follows:
30 (40 ILCS 15/1.1)
31 Sec. 1.1. Appropriations to certain retirement systems.
32 (a) There is hereby appropriated from the General
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1 Revenue Fund to the General Assembly Retirement System, on a
2 continuing monthly basis, the amount, if any, by which the
3 total available amount of all other appropriations to that
4 retirement system for the payment of State contributions is
5 less than the total amount of the vouchers for required State
6 contributions lawfully submitted by the retirement system for
7 that month under Section 2-134 of the Illinois Pension Code.
8 (b) There is hereby appropriated from the General
9 Revenue Fund to the State Universities Retirement System, on
10 a continuing monthly basis, the amount, if any, by which the
11 total available amount of all other appropriations to that
12 retirement system for the payment of State contributions,
13 including any deficiency in the required contributions of the
14 optional retirement program established under Section
15 15-158.2 of the Illinois Pension Code, is less than the total
16 amount of the vouchers for required State contributions
17 lawfully submitted by the retirement system for that month
18 under Section 15-165 of the Illinois Pension Code.
19 (c) There is hereby appropriated from the Common School
20 Fund to the Teachers' Retirement System of the State of
21 Illinois, on a continuing monthly basis, the amount, if any,
22 by which the total available amount of all other
23 appropriations to that retirement system for the payment of
24 State contributions is less than the total amount of the
25 vouchers for required State contributions lawfully submitted
26 by the retirement system for that month under Section 16-158
27 of the Illinois Pension Code.
28 (d) There is hereby appropriated from the General
29 Revenue Fund to the Judges Retirement System of Illinois, on
30 a continuing monthly basis, the amount, if any, by which the
31 total available amount of all other appropriations to that
32 retirement system for the payment of State contributions is
33 less than the total amount of the vouchers for required State
34 contributions lawfully submitted by the retirement system for
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1 that month under Section 18-140 of the Illinois Pension Code.
2 (e) The continuing appropriations provided by this
3 Section shall first be available in State fiscal year 1996.
4 (Source: P.A. 88-593, eff. 8-22-94.)
5 Section 75. The State Mandates Act is amended by adding
6 Section 8.21 as follows:
7 (30 ILCS 805/8.21 new)
8 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
9 and 8 of this Act, no reimbursement by the State is required
10 for the implementation of any mandate created by this
11 amendatory Act of 1997.
12 Section 80. No acceleration or delay. Where this Act
13 makes changes in a statute that is represented in this Act by
14 text that is not yet or no longer in effect (for example, a
15 Section represented by multiple versions), the use of that
16 text does not accelerate or delay the taking effect of (i)
17 the changes made by this Act or (ii) provisions derived from
18 any other Public Act.
19 Section 85. Effective date. This Act takes effect upon
20 becoming law.