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90_SB0665eng
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 Employees Group Insurance Act of
5 1971 is amended by changing Section 3 as follows:
6 (5 ILCS 375/3) (from Ch. 127, par. 523)
7 (Text of Section before amendment by P.A. 89-507)
8 Sec. 3. Definitions. Unless the context otherwise
9 requires, the following words and phrases as used in this Act
10 shall have the following meanings. The Department may define
11 these and other words and phrases separately for the purpose
12 of implementing specific programs providing benefits under
13 this Act.
14 (a) "Administrative service organization" means any
15 person, firm or corporation experienced in the handling of
16 claims which is fully qualified, financially sound and
17 capable of meeting the service requirements of a contract of
18 administration executed with the Department.
19 (b) "Annuitant" means (1) an employee who retires, or
20 has retired, on or after January 1, 1966 on an immediate
21 annuity under the provisions of Articles 2, 14, 15 (including
22 an employee who has retired and is receiving a retirement
23 annuity under the an optional retirement program established
24 under Section 15-158.2 and who would also be eligible for a
25 retirement annuity had that person been a participant in the
26 State University Retirement System), paragraphs (b) or (c) of
27 Section 16-106, or Article 18 of the Illinois Pension Code;
28 (2) any person who was receiving group insurance coverage
29 under this Act as of March 31, 1978 by reason of his status
30 as an annuitant, even though the annuity in relation to which
31 such coverage was provided is a proportional annuity based on
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1 less than the minimum period of service required for a
2 retirement annuity in the system involved; (3) any person not
3 otherwise covered by this Act who has retired as a
4 participating member under Article 2 of the Illinois Pension
5 Code but is ineligible for the retirement annuity under
6 Section 2-119 of the Illinois Pension Code; (4) the spouse of
7 any person who is receiving a retirement annuity under
8 Article 18 of the Illinois Pension Code and who is covered
9 under a group health insurance program sponsored by a
10 governmental employer other than the State of Illinois and
11 who has irrevocably elected to waive his or her coverage
12 under this Act and to have his or her spouse considered as
13 the "annuitant" under this Act and not as a "dependent"; or
14 (5) an employee who retires, or has retired, from a qualified
15 position, as determined according to rules promulgated by the
16 Director, under a qualified local government or a qualified
17 rehabilitation facility or a qualified domestic violence
18 shelter or service. (For definition of "retired employee",
19 see (p) post).
20 (c) "Carrier" means (1) an insurance company, a
21 corporation organized under the Limited Health Service
22 Organization Act or the Voluntary Health Services Plan Act, a
23 partnership, or other nongovernmental organization, which is
24 authorized to do group life or group health insurance
25 business in Illinois, or (2) the State of Illinois as a
26 self-insurer.
27 (d) "Compensation" means salary or wages payable on a
28 regular payroll by the State Treasurer on a warrant of the
29 State Comptroller out of any State, trust or federal fund, or
30 by the Governor of the State through a disbursing officer of
31 the State out of a trust or out of federal funds, or by any
32 Department out of State, trust, federal or other funds held
33 by the State Treasurer or the Department, to any person for
34 personal services currently performed, and ordinary or
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1 accidental disability benefits under Articles 2, 14, 15
2 (including ordinary or accidental disability benefits under
3 the an optional retirement program established under Section
4 15-158.2), paragraphs (b) or (c) of Section 16-106, or
5 Article 18 of the Illinois Pension Code, for disability
6 incurred after January 1, 1966, or benefits payable under the
7 Workers' Compensation or Occupational Diseases Act or
8 benefits payable under a sick pay plan established in
9 accordance with Section 36 of the State Finance Act.
10 "Compensation" also means salary or wages paid to an employee
11 of any qualified local government or qualified rehabilitation
12 facility or a qualified domestic violence shelter or service.
13 (e) "Commission" means the State Employees Group
14 Insurance Advisory Commission authorized by this Act.
15 Commencing July 1, 1984, "Commission" as used in this Act
16 means the Illinois Economic and Fiscal Commission as
17 established by the Legislative Commission Reorganization Act
18 of 1984.
19 (f) "Contributory", when referred to as contributory
20 coverage, shall mean optional coverages or benefits elected
21 by the member toward the cost of which such member makes
22 contribution, or which are funded in whole or in part through
23 the acceptance of a reduction in earnings or the foregoing of
24 an increase in earnings by an employee, as distinguished from
25 noncontributory coverage or benefits which are paid entirely
26 by the State of Illinois without reduction of the member's
27 salary.
28 (g) "Department" means any department, institution,
29 board, commission, officer, court or any agency of the State
30 government receiving appropriations and having power to
31 certify payrolls to the Comptroller authorizing payments of
32 salary and wages against such appropriations as are made by
33 the General Assembly from any State fund, or against trust
34 funds held by the State Treasurer and includes boards of
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1 trustees of the retirement systems created by Articles 2, 14,
2 15, 16 and 18 of the Illinois Pension Code. "Department"
3 also includes the Illinois Comprehensive Health Insurance
4 Board and the Illinois Rural Bond Bank.
5 (h) "Dependent", when the term is used in the context of
6 the health and life plan, means a member's spouse and any
7 unmarried child (1) from birth to age 19 including an adopted
8 child, a child who lives with the member from the time of the
9 filing of a petition for adoption until entry of an order of
10 adoption, a stepchild or recognized child who lives with the
11 member in a parent-child relationship, or a child who lives
12 with the member if such member is a court appointed guardian
13 of the child, or (2) age 19 to 23 enrolled as a full-time
14 student in any accredited school, financially dependent upon
15 the member, and eligible as a dependent for Illinois State
16 income tax purposes, or (3) age 19 or over who is mentally or
17 physically handicapped as defined in the Illinois Insurance
18 Code. For the health plan only, the term "dependent" also
19 includes any person enrolled prior to the effective date of
20 this Section who is dependent upon the member to the extent
21 that the member may claim such person as a dependent for
22 Illinois State income tax deduction purposes; no other such
23 person may be enrolled.
24 (i) "Director" means the Director of the Illinois
25 Department of Central Management Services.
26 (j) "Eligibility period" means the period of time a
27 member has to elect enrollment in programs or to select
28 benefits without regard to age, sex or health.
29 (k) "Employee" means and includes each officer or
30 employee in the service of a department who (1) receives his
31 compensation for service rendered to the department on a
32 warrant issued pursuant to a payroll certified by a
33 department or on a warrant or check issued and drawn by a
34 department upon a trust, federal or other fund or on a
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1 warrant issued pursuant to a payroll certified by an elected
2 or duly appointed officer of the State or who receives
3 payment of the performance of personal services on a warrant
4 issued pursuant to a payroll certified by a Department and
5 drawn by the Comptroller upon the State Treasurer against
6 appropriations made by the General Assembly from any fund or
7 against trust funds held by the State Treasurer, and (2) is
8 employed full-time or part-time in a position normally
9 requiring actual performance of duty during not less than 1/2
10 of a normal work period, as established by the Director in
11 cooperation with each department, except that persons elected
12 by popular vote will be considered employees during the
13 entire term for which they are elected regardless of hours
14 devoted to the service of the State, and (3) except that
15 "employee" does not include any person who is not eligible by
16 reason of such person's employment to participate in one of
17 the State retirement systems under Articles 2, 14, 15 (either
18 the regular Article 15 system or the an optional retirement
19 program established under Section 15-158.2) or 18, or under
20 paragraph (b) or (c) of Section 16-106, of the Illinois
21 Pension Code, but such term does include persons who are
22 employed during the 6 month qualifying period under Article
23 14 of the Illinois Pension Code. Such term also includes any
24 person who (1) after January 1, 1966, is receiving ordinary
25 or accidental disability benefits under Articles 2, 14, 15
26 (including ordinary or accidental disability benefits under
27 the an optional retirement program established under Section
28 15-158.2), paragraphs (b) or (c) of Section 16-106, or
29 Article 18 of the Illinois Pension Code, for disability
30 incurred after January 1, 1966, (2) receives total permanent
31 or total temporary disability under the Workers' Compensation
32 Act or Occupational Disease Act as a result of injuries
33 sustained or illness contracted in the course of employment
34 with the State of Illinois, or (3) is not otherwise covered
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1 under this Act and has retired as a participating member
2 under Article 2 of the Illinois Pension Code but is
3 ineligible for the retirement annuity under Section 2-119 of
4 the Illinois Pension Code. However, a person who satisfies
5 the criteria of the foregoing definition of "employee" except
6 that such person is made ineligible to participate in the
7 State Universities Retirement System by clause (4) of the
8 first paragraph of Section 15-107 of the Illinois Pension
9 Code is also an "employee" for the purposes of this Act.
10 "Employee" also includes any person receiving or eligible for
11 benefits under a sick pay plan established in accordance with
12 Section 36 of the State Finance Act. "Employee" also includes
13 each officer or employee in the service of a qualified local
14 government, including persons appointed as trustees of
15 sanitary districts regardless of hours devoted to the service
16 of the sanitary district, and each employee in the service of
17 a qualified rehabilitation facility and each full-time
18 employee in the service of a qualified domestic violence
19 shelter or service, as determined according to rules
20 promulgated by the Director.
21 (l) "Member" means an employee, annuitant, retired
22 employee or survivor.
23 (m) "Optional coverages or benefits" means those
24 coverages or benefits available to the member on his or her
25 voluntary election, and at his or her own expense.
26 (n) "Program" means the group life insurance, health
27 benefits and other employee benefits designed and contracted
28 for by the Director under this Act.
29 (o) "Health plan" means a self-insured health insurance
30 program offered by the State of Illinois for the purposes of
31 benefiting employees by means of providing, among others,
32 wellness programs, utilization reviews, second opinions and
33 medical fee reviews, as well as for paying for hospital and
34 medical care up to the maximum coverage provided by the plan,
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1 to its members and their dependents.
2 (p) "Retired employee" means any person who would be an
3 annuitant as that term is defined herein but for the fact
4 that such person retired prior to January 1, 1966. Such term
5 also includes any person formerly employed by the University
6 of Illinois in the Cooperative Extension Service who would be
7 an annuitant but for the fact that such person was made
8 ineligible to participate in the State Universities
9 Retirement System by clause (4) of the first paragraph of
10 Section 15-107 of the Illinois Pension Code.
11 (q) "Survivor" means a person receiving an annuity as a
12 survivor of an employee or of an annuitant. "Survivor" also
13 includes: (1) the surviving dependent of a person who
14 satisfies the definition of "employee" except that such
15 person is made ineligible to participate in the State
16 Universities Retirement System by clause (4) of the first
17 paragraph of Section 15-107 of the Illinois Pension Code; and
18 (2) the surviving dependent of any person formerly employed
19 by the University of Illinois in the Cooperative Extension
20 Service who would be an annuitant except for the fact that
21 such person was made ineligible to participate in the State
22 Universities Retirement System by clause (4) of the first
23 paragraph of Section 15-107 of the Illinois Pension Code.
24 (r) "Medical services" means the services provided
25 within the scope of their licenses by practitioners in all
26 categories licensed under the Medical Practice Act of 1987.
27 (s) "Unit of local government" means any county,
28 municipality, township, school district, special district or
29 other unit, designated as a unit of local government by law,
30 which exercises limited governmental powers or powers in
31 respect to limited governmental subjects, any not-for-profit
32 association with a membership that primarily includes
33 townships and township officials, that has duties that
34 include provision of research service, dissemination of
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1 information, and other acts for the purpose of improving
2 township government, and that is funded wholly or partly in
3 accordance with Section 85-15 of the Township Code; any
4 not-for-profit corporation or association, with a membership
5 consisting primarily of municipalities, that operates its own
6 utility system, and provides research, training,
7 dissemination of information, or other acts to promote
8 cooperation between and among municipalities that provide
9 utility services and for the advancement of the goals and
10 purposes of its membership; and the Illinois Association of
11 Park Districts. "Qualified local government" means a unit of
12 local government approved by the Director and participating
13 in a program created under subsection (i) of Section 10 of
14 this Act.
15 (t) "Qualified rehabilitation facility" means any
16 not-for-profit organization that is accredited by the
17 Commission on Accreditation of Rehabilitation Facilities or
18 certified by the Department of Mental Health and
19 Developmental Disabilities to provide services to persons
20 with disabilities and which receives funds from the State of
21 Illinois for providing those services, approved by the
22 Director and participating in a program created under
23 subsection (j) of Section 10 of this Act.
24 (u) "Qualified domestic violence shelter or service"
25 means any Illinois domestic violence shelter or service and
26 its administrative offices funded by the Illinois Department
27 of Public Aid, approved by the Director and participating in
28 a program created under subsection (k) of Section 10.
29 (v) "TRS benefit recipient" means a person who:
30 (1) is not a "member" as defined in this Section;
31 and
32 (2) is receiving a monthly benefit or retirement
33 annuity under Article 16 of the Illinois Pension Code;
34 and
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1 (3) either (i) has at least 8 years of creditable
2 service under Article 16 of the Illinois Pension Code, or
3 (ii) was enrolled in the health insurance program offered
4 under that Article on January 1, 1996, or (iii) is the
5 survivor of a benefit recipient who had at least 8 years
6 of creditable service under Article 16 of the Illinois
7 Pension Code or was enrolled in the health insurance
8 program offered under that Article on the effective date
9 of this amendatory Act of 1995, or (iv) is a recipient or
10 survivor of a recipient of a disability benefit under
11 Article 16 of the Illinois Pension Code.
12 (w) "TRS dependent beneficiary" means a person who:
13 (1) is not a "member" or "dependent" as defined in
14 this Section; and
15 (2) is a TRS benefit recipient's: (A) spouse, (B)
16 dependent parent who is receiving at least half of his or
17 her support from the TRS benefit recipient, or (C)
18 unmarried natural or adopted child who is (i) under age
19 19, or (ii) enrolled as a full-time student in an
20 accredited school, financially dependent upon the TRS
21 benefit recipient, eligible as a dependent for Illinois
22 State income tax purposes, and either is under age 24 or
23 was, on January 1, 1996, participating as a dependent
24 beneficiary in the health insurance program offered under
25 Article 16 of the Illinois Pension Code, or (iii) age 19
26 or over who is mentally or physically handicapped as
27 defined in the Illinois Insurance Code.
28 (x) "Military leave with pay and benefits" refers to
29 individuals in basic training for reserves, special/advanced
30 training, annual training, emergency call up, or activation
31 by the President of the United States with approved pay and
32 benefits.
33 (y) "Military leave without pay and benefits" refers to
34 individuals who enlist for active duty in a regular component
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1 of the U.S. Armed Forces or other duty not specified or
2 authorized under military leave with pay and benefits.
3 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
4 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
5 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-628,
6 eff. 8-9-96; revised 8-23-96.)
7 (Text of Section after amendment by P.A. 89-507)
8 Sec. 3. Definitions. Unless the context otherwise
9 requires, the following words and phrases as used in this Act
10 shall have the following meanings. The Department may define
11 these and other words and phrases separately for the purpose
12 of implementing specific programs providing benefits under
13 this Act.
14 (a) "Administrative service organization" means any
15 person, firm or corporation experienced in the handling of
16 claims which is fully qualified, financially sound and
17 capable of meeting the service requirements of a contract of
18 administration executed with the Department.
19 (b) "Annuitant" means (1) an employee who retires, or
20 has retired, on or after January 1, 1966 on an immediate
21 annuity under the provisions of Articles 2, 14, 15 (including
22 an employee who has retired and is receiving a retirement
23 annuity under the an optional retirement program established
24 under Section 15-158.2 and who would also be eligible for a
25 retirement annuity had that person been a participant in the
26 State University Retirement System), paragraphs (b) or (c) of
27 Section 16-106, or Article 18 of the Illinois Pension Code;
28 (2) any person who was receiving group insurance coverage
29 under this Act as of March 31, 1978 by reason of his status
30 as an annuitant, even though the annuity in relation to which
31 such coverage was provided is a proportional annuity based on
32 less than the minimum period of service required for a
33 retirement annuity in the system involved; (3) any person not
34 otherwise covered by this Act who has retired as a
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1 participating member under Article 2 of the Illinois Pension
2 Code but is ineligible for the retirement annuity under
3 Section 2-119 of the Illinois Pension Code; (4) the spouse of
4 any person who is receiving a retirement annuity under
5 Article 18 of the Illinois Pension Code and who is covered
6 under a group health insurance program sponsored by a
7 governmental employer other than the State of Illinois and
8 who has irrevocably elected to waive his or her coverage
9 under this Act and to have his or her spouse considered as
10 the "annuitant" under this Act and not as a "dependent"; or
11 (5) an employee who retires, or has retired, from a qualified
12 position, as determined according to rules promulgated by the
13 Director, under a qualified local government or a qualified
14 rehabilitation facility or a qualified domestic violence
15 shelter or service. (For definition of "retired employee",
16 see (p) post).
17 (c) "Carrier" means (1) an insurance company, a
18 corporation organized under the Limited Health Service
19 Organization Act or the Voluntary Health Services Plan Act, a
20 partnership, or other nongovernmental organization, which is
21 authorized to do group life or group health insurance
22 business in Illinois, or (2) the State of Illinois as a
23 self-insurer.
24 (d) "Compensation" means salary or wages payable on a
25 regular payroll by the State Treasurer on a warrant of the
26 State Comptroller out of any State, trust or federal fund, or
27 by the Governor of the State through a disbursing officer of
28 the State out of a trust or out of federal funds, or by any
29 Department out of State, trust, federal or other funds held
30 by the State Treasurer or the Department, to any person for
31 personal services currently performed, and ordinary or
32 accidental disability benefits under Articles 2, 14, 15
33 (including ordinary or accidental disability benefits under
34 the an optional retirement program established under Section
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1 15-158.2), paragraphs (b) or (c) of Section 16-106, or
2 Article 18 of the Illinois Pension Code, for disability
3 incurred after January 1, 1966, or benefits payable under the
4 Workers' Compensation or Occupational Diseases Act or
5 benefits payable under a sick pay plan established in
6 accordance with Section 36 of the State Finance Act.
7 "Compensation" also means salary or wages paid to an employee
8 of any qualified local government or qualified rehabilitation
9 facility or a qualified domestic violence shelter or service.
10 (e) "Commission" means the State Employees Group
11 Insurance Advisory Commission authorized by this Act.
12 Commencing July 1, 1984, "Commission" as used in this Act
13 means the Illinois Economic and Fiscal Commission as
14 established by the Legislative Commission Reorganization Act
15 of 1984.
16 (f) "Contributory", when referred to as contributory
17 coverage, shall mean optional coverages or benefits elected
18 by the member toward the cost of which such member makes
19 contribution, or which are funded in whole or in part through
20 the acceptance of a reduction in earnings or the foregoing of
21 an increase in earnings by an employee, as distinguished from
22 noncontributory coverage or benefits which are paid entirely
23 by the State of Illinois without reduction of the member's
24 salary.
25 (g) "Department" means any department, institution,
26 board, commission, officer, court or any agency of the State
27 government receiving appropriations and having power to
28 certify payrolls to the Comptroller authorizing payments of
29 salary and wages against such appropriations as are made by
30 the General Assembly from any State fund, or against trust
31 funds held by the State Treasurer and includes boards of
32 trustees of the retirement systems created by Articles 2, 14,
33 15, 16 and 18 of the Illinois Pension Code. "Department"
34 also includes the Illinois Comprehensive Health Insurance
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1 Board and the Illinois Rural Bond Bank.
2 (h) "Dependent", when the term is used in the context of
3 the health and life plan, means a member's spouse and any
4 unmarried child (1) from birth to age 19 including an adopted
5 child, a child who lives with the member from the time of the
6 filing of a petition for adoption until entry of an order of
7 adoption, a stepchild or recognized child who lives with the
8 member in a parent-child relationship, or a child who lives
9 with the member if such member is a court appointed guardian
10 of the child, or (2) age 19 to 23 enrolled as a full-time
11 student in any accredited school, financially dependent upon
12 the member, and eligible as a dependent for Illinois State
13 income tax purposes, or (3) age 19 or over who is mentally or
14 physically handicapped as defined in the Illinois Insurance
15 Code. For the health plan only, the term "dependent" also
16 includes any person enrolled prior to the effective date of
17 this Section who is dependent upon the member to the extent
18 that the member may claim such person as a dependent for
19 Illinois State income tax deduction purposes; no other such
20 person may be enrolled.
21 (i) "Director" means the Director of the Illinois
22 Department of Central Management Services.
23 (j) "Eligibility period" means the period of time a
24 member has to elect enrollment in programs or to select
25 benefits without regard to age, sex or health.
26 (k) "Employee" means and includes each officer or
27 employee in the service of a department who (1) receives his
28 compensation for service rendered to the department on a
29 warrant issued pursuant to a payroll certified by a
30 department or on a warrant or check issued and drawn by a
31 department upon a trust, federal or other fund or on a
32 warrant issued pursuant to a payroll certified by an elected
33 or duly appointed officer of the State or who receives
34 payment of the performance of personal services on a warrant
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1 issued pursuant to a payroll certified by a Department and
2 drawn by the Comptroller upon the State Treasurer against
3 appropriations made by the General Assembly from any fund or
4 against trust funds held by the State Treasurer, and (2) is
5 employed full-time or part-time in a position normally
6 requiring actual performance of duty during not less than 1/2
7 of a normal work period, as established by the Director in
8 cooperation with each department, except that persons elected
9 by popular vote will be considered employees during the
10 entire term for which they are elected regardless of hours
11 devoted to the service of the State, and (3) except that
12 "employee" does not include any person who is not eligible by
13 reason of such person's employment to participate in one of
14 the State retirement systems under Articles 2, 14, 15 (either
15 the regular Article 15 system or the an optional retirement
16 program established under Section 15-158.2) or 18, or under
17 paragraph (b) or (c) of Section 16-106, of the Illinois
18 Pension Code, but such term does include persons who are
19 employed during the 6 month qualifying period under Article
20 14 of the Illinois Pension Code. Such term also includes any
21 person who (1) after January 1, 1966, is receiving ordinary
22 or accidental disability benefits under Articles 2, 14, 15
23 (including ordinary or accidental disability benefits under
24 the an optional retirement program established under Section
25 15-158.2), paragraphs (b) or (c) of Section 16-106, or
26 Article 18 of the Illinois Pension Code, for disability
27 incurred after January 1, 1966, (2) receives total permanent
28 or total temporary disability under the Workers' Compensation
29 Act or Occupational Disease Act as a result of injuries
30 sustained or illness contracted in the course of employment
31 with the State of Illinois, or (3) is not otherwise covered
32 under this Act and has retired as a participating member
33 under Article 2 of the Illinois Pension Code but is
34 ineligible for the retirement annuity under Section 2-119 of
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1 the Illinois Pension Code. However, a person who satisfies
2 the criteria of the foregoing definition of "employee" except
3 that such person is made ineligible to participate in the
4 State Universities Retirement System by clause (4) of the
5 first paragraph of Section 15-107 of the Illinois Pension
6 Code is also an "employee" for the purposes of this Act.
7 "Employee" also includes any person receiving or eligible for
8 benefits under a sick pay plan established in accordance with
9 Section 36 of the State Finance Act. "Employee" also includes
10 each officer or employee in the service of a qualified local
11 government, including persons appointed as trustees of
12 sanitary districts regardless of hours devoted to the service
13 of the sanitary district, and each employee in the service of
14 a qualified rehabilitation facility and each full-time
15 employee in the service of a qualified domestic violence
16 shelter or service, as determined according to rules
17 promulgated by the Director.
18 (l) "Member" means an employee, annuitant, retired
19 employee or survivor.
20 (m) "Optional coverages or benefits" means those
21 coverages or benefits available to the member on his or her
22 voluntary election, and at his or her own expense.
23 (n) "Program" means the group life insurance, health
24 benefits and other employee benefits designed and contracted
25 for by the Director under this Act.
26 (o) "Health plan" means a self-insured health insurance
27 program offered by the State of Illinois for the purposes of
28 benefiting employees by means of providing, among others,
29 wellness programs, utilization reviews, second opinions and
30 medical fee reviews, as well as for paying for hospital and
31 medical care up to the maximum coverage provided by the plan,
32 to its members and their dependents.
33 (p) "Retired employee" means any person who would be an
34 annuitant as that term is defined herein but for the fact
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1 that such person retired prior to January 1, 1966. Such term
2 also includes any person formerly employed by the University
3 of Illinois in the Cooperative Extension Service who would be
4 an annuitant but for the fact that such person was made
5 ineligible to participate in the State Universities
6 Retirement System by clause (4) of the first paragraph of
7 Section 15-107 of the Illinois Pension Code.
8 (q) "Survivor" means a person receiving an annuity as a
9 survivor of an employee or of an annuitant. "Survivor" also
10 includes: (1) the surviving dependent of a person who
11 satisfies the definition of "employee" except that such
12 person is made ineligible to participate in the State
13 Universities Retirement System by clause (4) of the first
14 paragraph of Section 15-107 of the Illinois Pension Code; and
15 (2) the surviving dependent of any person formerly employed
16 by the University of Illinois in the Cooperative Extension
17 Service who would be an annuitant except for the fact that
18 such person was made ineligible to participate in the State
19 Universities Retirement System by clause (4) of the first
20 paragraph of Section 15-107 of the Illinois Pension Code.
21 (r) "Medical services" means the services provided
22 within the scope of their licenses by practitioners in all
23 categories licensed under the Medical Practice Act of 1987.
24 (s) "Unit of local government" means any county,
25 municipality, township, school district, special district or
26 other unit, designated as a unit of local government by law,
27 which exercises limited governmental powers or powers in
28 respect to limited governmental subjects, any not-for-profit
29 association with a membership that primarily includes
30 townships and township officials, that has duties that
31 include provision of research service, dissemination of
32 information, and other acts for the purpose of improving
33 township government, and that is funded wholly or partly in
34 accordance with Section 85-15 of the Township Code; any
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1 not-for-profit corporation or association, with a membership
2 consisting primarily of municipalities, that operates its own
3 utility system, and provides research, training,
4 dissemination of information, or other acts to promote
5 cooperation between and among municipalities that provide
6 utility services and for the advancement of the goals and
7 purposes of its membership; and the Illinois Association of
8 Park Districts. "Qualified local government" means a unit of
9 local government approved by the Director and participating
10 in a program created under subsection (i) of Section 10 of
11 this Act.
12 (t) "Qualified rehabilitation facility" means any
13 not-for-profit organization that is accredited by the
14 Commission on Accreditation of Rehabilitation Facilities or
15 certified by the Department of Human Services (as successor
16 to the Department of Mental Health and Developmental
17 Disabilities) to provide services to persons with
18 disabilities and which receives funds from the State of
19 Illinois for providing those services, approved by the
20 Director and participating in a program created under
21 subsection (j) of Section 10 of this Act.
22 (u) "Qualified domestic violence shelter or service"
23 means any Illinois domestic violence shelter or service and
24 its administrative offices funded by the Department of Human
25 Services (as successor to the Illinois Department of Public
26 Aid), approved by the Director and participating in a program
27 created under subsection (k) of Section 10.
28 (v) "TRS benefit recipient" means a person who:
29 (1) is not a "member" as defined in this Section;
30 and
31 (2) is receiving a monthly benefit or retirement
32 annuity under Article 16 of the Illinois Pension Code;
33 and
34 (3) either (i) has at least 8 years of creditable
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1 service under Article 16 of the Illinois Pension Code, or
2 (ii) was enrolled in the health insurance program offered
3 under that Article on January 1, 1996, or (iii) is the
4 survivor of a benefit recipient who had at least 8 years
5 of creditable service under Article 16 of the Illinois
6 Pension Code or was enrolled in the health insurance
7 program offered under that Article on the effective date
8 of this amendatory Act of 1995, or (iv) is a recipient or
9 survivor of a recipient of a disability benefit under
10 Article 16 of the Illinois Pension Code.
11 (w) "TRS dependent beneficiary" means a person who:
12 (1) is not a "member" or "dependent" as defined in
13 this Section; and
14 (2) is a TRS benefit recipient's: (A) spouse, (B)
15 dependent parent who is receiving at least half of his or
16 her support from the TRS benefit recipient, or (C)
17 unmarried natural or adopted child who is (i) under age
18 19, or (ii) enrolled as a full-time student in an
19 accredited school, financially dependent upon the TRS
20 benefit recipient, eligible as a dependent for Illinois
21 State income tax purposes, and either is under age 24 or
22 was, on January 1, 1996, participating as a dependent
23 beneficiary in the health insurance program offered under
24 Article 16 of the Illinois Pension Code, or (iii) age 19
25 or over who is mentally or physically handicapped as
26 defined in the Illinois Insurance Code.
27 (x) "Military leave with pay and benefits" refers to
28 individuals in basic training for reserves, special/advanced
29 training, annual training, emergency call up, or activation
30 by the President of the United States with approved pay and
31 benefits.
32 (y) "Military leave without pay and benefits" refers to
33 individuals who enlist for active duty in a regular component
34 of the U.S. Armed Forces or other duty not specified or
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1 authorized under military leave with pay and benefits.
2 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
3 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
4 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-507,
5 eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)
6 Section 10. The Illinois Pension Code is amended by
7 changing Sections 15-107, 15-134, 15-136, 15-141, 15-142,
8 15-146, 15-154, 15-157, 15-158.2, and 15-165 and adding
9 Section 15-136.4 as follows:
10 (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
11 Sec. 15-107. Employee.
12 (a) "Employee" means any member of the educational,
13 administrative, secretarial, clerical, mechanical, labor or
14 other staff of an employer whose employment is permanent and
15 continuous or who is employed in a position in which services
16 are expected to be rendered on a continuous basis for at
17 least 4 months or one academic term, whichever is less, who
18 (A) receives payment for personal services on a warrant
19 issued pursuant to a payroll voucher certified by an employer
20 and drawn by the State Comptroller upon the State Treasurer
21 or by an employer upon trust, federal or other funds, or (B)
22 is on a leave of absence without pay. Employment which is
23 irregular, intermittent or temporary shall not be considered
24 continuous for purposes of this paragraph.
25 However, a person is not an "employee" if he or she:
26 (1) is a student enrolled in and regularly
27 attending classes in a college or university which is an
28 employer, and is employed on a temporary basis at less
29 than full time;
30 (2) is currently receiving a retirement annuity or
31 a disability retirement annuity under Section 15-153.2
32 from this System;
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1 (3) is on a military leave of absence;
2 (4) is eligible to participate in the Federal Civil
3 Service Retirement System and is currently making
4 contributions to that system based upon earnings paid by
5 an employer;
6 (5) is on leave of absence without pay for more
7 than 60 days immediately following termination of
8 disability benefits under this Article;
9 (6) is hired after June 30, 1979 as a public
10 service employment program participant under the Federal
11 Comprehensive Employment and Training Act and receives
12 earnings in whole or in part from funds provided under
13 that Act;
14 (7) is employed on or after July 1, 1991 to perform
15 services that are excluded by subdivision (a)(7)(f) or
16 (a)(19) of Section 210 of the federal Social Security Act
17 from the definition of employment given in that Section
18 (42 U.S.C. 410); or
19 (8) participates in an optional program for
20 part-time workers under Section 15-158.1.; or
21 (9) participates in an optional program for
22 employees under Section 15-158.2.
23 (b) Any employer may, by filing a written notice with
24 the board, exclude from the definition of "employee" all
25 persons employed pursuant to a federally funded contract
26 entered into after July 1, 1982 with a federal military
27 department in a program providing training in military
28 courses to federal military personnel on a military site
29 owned by the United States Government, if this exclusion is
30 not prohibited by the federally funded contract or federal
31 laws or rules governing the administration of the contract.
32 (c) Any person appointed by the Governor under the Civil
33 Administrative Code of the State is an employee, if he or she
34 is a participant in this system on the effective date of the
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1 appointment.
2 (d) A participant on lay-off status under civil service
3 rules is considered an employee for not more than 120 days
4 from the date of the lay-off.
5 (e) A participant is considered an employee during (1)
6 the first 60 days of disability leave, (2) the period, not to
7 exceed one year, in which his or her eligibility for
8 disability benefits is being considered by the board or
9 reviewed by the courts, and (3) the period he or she receives
10 disability benefits under the provisions of Section 15-152,
11 workers' compensation or occupational disease benefits, or
12 disability income under an insurance contract financed wholly
13 or partially by the employer.
14 (f) Absences without pay, other than formal leaves of
15 absence, of less than 30 calendar days, are not considered as
16 an interruption of a person's status as an employee. If such
17 absences during any period of 12 months exceed 30 work days,
18 the employee status of the person is considered as
19 interrupted as of the 31st work day.
20 (g) A staff member whose employment contract requires
21 services during an academic term is to be considered an
22 employee during the summer and other vacation periods, unless
23 he or she declines an employment contract for the succeeding
24 academic term or his or her employment status is otherwise
25 terminated, and he or she receives no earnings during these
26 periods.
27 (Source: P.A. 89-430, eff. 12-15-95.)
28 (40 ILCS 5/15-134) (from Ch. 108 1/2, par. 15-134)
29 Sec. 15-134. Participant.
30 (a) Each person shall, as a condition of employment,
31 become a participant and be subject to this Article on the
32 date that he or she becomes an employee, makes an election to
33 participate in, or otherwise becomes a participant in one of
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1 the retirement programs offered under this Article, whichever
2 date is later.
3 An employee who becomes a participant shall continue to
4 be a participant until he or she becomes an annuitant, dies
5 or accepts a refund of contributions, except that a person
6 shall not be deemed a participant while participating in an
7 optional program for part-time workers established under
8 Section 15-158.1 or participating in an optional program for
9 employees established under Section 15-158.2.
10 (b) A person employed concurrently by 2 or more
11 employers is eligible to participate in the system on
12 compensation received from all employers; however, his or her
13 combined basic compensation and combined earnings shall not
14 exceed the basic compensation and earnings which would have
15 been payable for full-time employment by the employer under
16 which the employee's basic compensation is the highest.
17 However, effective for all employment on or after July 1,
18 1991, where a person is employed to render service to one
19 employer during an academic or summer term and is employed by
20 another employer to render service to it during the
21 succeeding, nonoverlapping academic or summer term, then
22 exclusively for the purposes of this Section, the person
23 shall be considered to be successively employed by more than
24 one employer, rather than concurrently employed by 2 or more
25 employers.
26 (Source: P.A. 89-430, eff. 12-15-95.)
27 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
28 Sec. 15-136. Retirement annuities - Amount.
29 (a) The amount of the retirement annuity shall be
30 determined by whichever of the following rules is applicable
31 and provides the largest annuity:
32 Rule 1: The retirement annuity shall be 1.67% of final
33 rate of earnings for each of the first 10 years of service,
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1 1.90% for each of the next 10 years of service, 2.10% for
2 each year of service in excess of 20 but not exceeding 30,
3 and 2.30% for each year in excess of 30, except that the
4 annuity for those persons having made an election under
5 Section 15-154(a-1) shall be calculated and payable under the
6 portable retirement benefit program pursuant to the
7 provisions of Section 15-136.4.
8 Rule 2: The retirement annuity shall be the sum of the
9 following, determined from amounts credited to the
10 participant in accordance with the actuarial tables and the
11 prescribed rate of interest in effect at the time the
12 retirement annuity begins:
13 (i) The normal annuity which can be provided on an
14 actuarially actuarial equivalent basis, by the accumulated
15 normal contributions as of the date the annuity begins; and
16 (ii) an annuity from employer contributions of an amount
17 which can be provided on an actuarially equivalent basis from
18 the accumulated normal contributions made by the participant
19 under Section 15-113.6 and Section 15-113.7 plus 1.4 times
20 all other accumulated normal contributions made by the
21 participant, except that the annuity for those persons having
22 made an election under Section 15-154(a-1) shall be
23 calculated and payable under the portable retirement benefit
24 program pursuant to the provisions of Section 15-136.4.
25 Rule 3: The retirement annuity of a participant who is
26 employed at least one-half time during the period on which
27 his or her final rate of earnings is based, shall be equal to
28 the participant's years of service not to exceed 30,
29 multiplied by (1) $96 if the participant's final rate of
30 earnings is less than $3,500, (2) $108 if the final rate of
31 earnings is at least $3,500 but less than $4,500, (3) $120 if
32 the final rate of earnings is at least $4,500 but less than
33 $5,500, (4) $132 if the final rate of earnings is at least
34 $5,500 but less than $6,500, (5) $144 if the final rate of
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1 earnings is at least $6,500 but less than $7,500, (6) $156 if
2 the final rate of earnings is at least $7,500 but less than
3 $8,500, (7) $168 if the final rate of earnings is at least
4 $8,500 but less than $9,500, and (8) $180 if the final rate
5 of earnings is $9,500 or more, except that the annuity for
6 those persons having made an election under Section
7 15-154(a-1) shall be calculated and payable under the
8 portable retirement benefit program pursuant to the
9 provisions of Section 15-136.4.
10 Rule 4: A participant who is at least age 50 and has 25
11 or more years of service as a police officer or firefighter,
12 and a participant who is age 55 or over and has at least 20
13 but less than 25 years of service as a police officer or
14 firefighter, shall be entitled to a retirement annuity of 2
15 1/4% of the final rate of earnings for each of the first 10
16 years of service as a police officer or firefighter, 2 1/2%
17 for each of the next 10 years of service as a police officer
18 or firefighter, and 2 3/4% for each year of service as a
19 police officer or firefighter in excess of 20, except that
20 the annuity for those persons having made an election under
21 Section 15-154(a-1) shall be calculated and payable under the
22 portable retirement benefit program pursuant to the
23 provisions of Section 15-136.4. The retirement annuity for
24 all other service shall be computed under Rule 1, payable
25 under the portable retirement benefit program pursuant to the
26 provisions of Section 15-136.4, if applicable.
27 (b) The retirement annuity provided under Rules 1 and 3
28 above shall be reduced by 1/2 of 1% for each month the
29 participant is under age 60 at the time of retirement.
30 However, this reduction shall not apply in the following
31 cases:
32 (1) For a disabled participant whose disability
33 benefits have been discontinued because he or she has
34 exhausted eligibility for disability benefits under
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1 clause (6) (5) of Section 15-152;
2 (2) For a participant who has at least 35 years of
3 service; or
4 (3) For that portion of a retirement annuity which
5 has been provided on account of service of the
6 participant during periods when he or she performed the
7 duties of a police officer or firefighter, if these
8 duties were performed for at least 5 years immediately
9 preceding the date the retirement annuity is to begin.
10 (c) The maximum retirement annuity provided under Rules
11 1, 2, and 4 shall be the lesser of (1) the annual limit of
12 benefits as specified in Section 415 of the Internal Revenue
13 Code of 1986, as such Section may be amended from time to
14 time and as such benefit limits shall be adjusted by the
15 Commissioner of Internal Revenue, and (2) 75% of final rate
16 of earnings; however, this limitation of 75% of final rate of
17 earnings shall not apply to a person who is a participant or
18 annuitant on September 15, 1977 if it results in a retirement
19 annuity less than that which is payable to the annuitant or
20 which would have been payable to the participant under the
21 provisions of this Article in effect on June 30, 1977.
22 (d) An annuitant whose status as an employee terminates
23 after August 14, 1969 shall receive automatic increases in
24 his or her retirement annuity as follows:
25 Effective January 1 immediately following the date the
26 retirement annuity begins, the annuitant shall receive an
27 increase in his or her monthly retirement annuity of 0.125%
28 of the monthly retirement annuity provided under Rule 1, Rule
29 2, Rule 3, or Rule 4, contained in this Section, multiplied
30 by the number of full months which elapsed from the date the
31 retirement annuity payments began to January 1, 1972, plus
32 0.1667% of such annuity, multiplied by the number of full
33 months which elapsed from January 1, 1972, or the date the
34 retirement annuity payments began, whichever is later, to
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1 January 1, 1978, plus 0.25% of such annuity multiplied by the
2 number of full months which elapsed from January 1, 1978, or
3 the date the retirement annuity payments began, whichever is
4 later, to the effective date of the increase.
5 The annuitant shall receive an increase in his or her
6 monthly retirement annuity on each January 1 thereafter
7 during the annuitant's life of 3% of the monthly annuity
8 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
9 this Section. The change made under this subsection by P.A.
10 81-970 is effective January 1, 1980 and applies to each
11 annuitant whose status as an employee terminates before or
12 after that date.
13 Beginning January 1, 1990, all automatic annual increases
14 payable under this Section shall be calculated as a
15 percentage of the total annuity payable at the time of the
16 increase, including all increases previously granted under
17 this Article. The change made in this subsection by P.A.
18 85-1008 is effective January 26, 1988, and is applicable
19 without regard to whether status as an employee terminated
20 before that date.
21 (e) If, on January 1, 1987, or the date the retirement
22 annuity payment period begins, whichever is later, the sum of
23 the retirement annuity provided under Rule 1 or Rule 2 of
24 this Section and the automatic annual increases provided
25 under the preceding subsection or Section 15-136.1, amounts
26 to less than the retirement annuity which would be provided
27 by Rule 3, the retirement annuity shall be increased as of
28 January 1, 1987, or the date the retirement annuity payment
29 period begins, whichever is later, to the amount which would
30 be provided by Rule 3 of this Section. Such increased amount
31 shall be considered as the retirement annuity in determining
32 benefits provided under other Sections of this Article. This
33 paragraph applies without regard to whether status as an
34 employee terminated before the effective date of this
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1 amendatory Act of 1987, provided that the annuitant was
2 employed at least one-half time during the period on which
3 the final rate of earnings was based.
4 (f) A participant is entitled to such additional annuity
5 as may be provided on an actuarially actuarial equivalent
6 basis, by any accumulated additional contributions to his or
7 her credit. However, the additional contributions made by
8 the participant toward the automatic increases in annuity
9 provided under this Section shall not be taken into account
10 in determining the amount of such additional annuity.
11 (g) If, (1) by law, a function of a governmental unit,
12 as defined by Section 20-107 of this Code, is transferred in
13 whole or in part to an employer, and (2) a participant
14 transfers employment from such governmental unit to such
15 employer within 6 months after the transfer of the function,
16 and (3) the sum of (A) the annuity payable to the participant
17 under Rule 1, 2, or 3 of this Section (B) all proportional
18 annuities payable to the participant by all other retirement
19 systems covered by Article 20, and (C) the initial primary
20 insurance amount to which the participant is entitled under
21 the Social Security Act, is less than the retirement annuity
22 which would have been payable if all of the participant's
23 pension credits validated under Section 20-109 had been
24 validated under this system, a supplemental annuity equal to
25 the difference in such amounts shall be payable to the
26 participant.
27 (h) On January 1, 1981, an annuitant who was receiving a
28 retirement annuity on or before January 1, 1971 shall have
29 his or her retirement annuity then being paid increased $1
30 per month for each year of creditable service. On January 1,
31 1982, an annuitant whose retirement annuity began on or
32 before January 1, 1977, shall have his or her retirement
33 annuity then being paid increased $1 per month for each year
34 of creditable service.
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1 (i) On January 1, 1987, any annuitant whose retirement
2 annuity began on or before January 1, 1977, shall have the
3 monthly retirement annuity increased by an amount equal to 8¢
4 per year of creditable service times the number of years that
5 have elapsed since the annuity began.
6 (Source: P.A. 86-272; 86-273; 86-1028; revised 5-17-96.)
7 (40 ILCS 5/15-136.4 new)
8 Sec. 15-136.4. Portable Retirement Benefit Program.
9 (a) For purposes of this Section, "eligible spouse"
10 means the husband or wife of a participant to whom the
11 participant is married on the date the participant's annuity
12 begins. However, if the participant should die prior to the
13 date the annuity would have begun, then "eligible spouse"
14 means the husband or wife, if any, to whom the participant
15 was married throughout the one-year period preceding the date
16 of his or her death.
17 (b) If a participant has an eligible spouse on the date
18 his or her annuity payments commence, the annuity shall be
19 paid in the form of a 50% joint and survivor annuity unless
20 the participant elects otherwise in writing and his or her
21 eligible spouse consents to that election. Under a 50% joint
22 and survivor annuity, a reduced amount shall be paid to the
23 participant for his or her lifetime and his or her eligible
24 spouse, if surviving at the participant's death, shall be
25 entitled to receive thereafter a lifetime survivorship
26 annuity in a monthly amount equal to 50% of the reduced
27 monthly amount that was payable to the participant. The
28 reduced amount payable to the participant under the 50% joint
29 and survivor annuity shall be determined so that the
30 aggregate of the annuity payments expected to be made to the
31 participant and his or her eligible spouse is the actuarial
32 equivalent of a single-life annuity. The last payment of a
33 50% joint and survivor annuity shall be made as of the first
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1 day of the month in which the death of the survivor occurs.
2 (c) Instead of the 50% joint and survivor annuity, a
3 participant may elect in writing, within the 90-day period
4 prior to the date his or her annuity payments commence, and
5 only with the consent of his or her eligible spouse, to
6 receive a monthly amount in the form of a single-life
7 annuity. A participant may also elect instead an optional
8 form of benefit under subsection (k). However, if the
9 participant does elect an optional form of benefit under
10 subsection (k) and if the contingent annuitant under the
11 option is not the participant's eligible spouse, then the
12 optional election shall be canceled and the annuity shall be
13 paid in the form of a 50% joint and survivor annuity unless,
14 within the 90-day period preceding the annuity commencement
15 date, the eligible spouse consents to the optional election.
16 (d) A participant may also revoke any election made
17 under this Section at any time during the 90-day period
18 preceding the date the participant's annuity commences if the
19 purpose of such revocation is to reinstate coverage under the
20 50% joint and survivor annuity.
21 (e) The eligible spouse's consent to any election made
22 pursuant to this Section that requires the eligible spouse's
23 consent shall be in writing and shall acknowledge the effect
24 of the consent. In addition, the eligible spouse's signature
25 on the written consent must be witnessed by a notary public.
26 The eligible spouse's consent need not be obtained if the
27 system is satisfied that there is no eligible spouse, that
28 the eligible spouse cannot be located, or because of any
29 other relevant circumstances. An eligible spouse's consent
30 under this Section is valid only with respect to the
31 specified alternate contingent annuitant designated by the
32 participant. If the alternate contingent annuitant is
33 subsequently changed, a new consent by the eligible spouse is
34 required. The eligible spouse's consent to an election made
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1 by a participant pursuant to this Section, once made, may not
2 be revoked by the eligible spouse.
3 (f) Within a reasonable period of time preceding the
4 date a participant's annuity commences, a participant shall
5 be supplied with a written explanation of (1) the terms and
6 conditions of the 50% joint and survivor annuity, (2) the
7 participant's right, if any, to elect a single-life annuity
8 or an optional form of payment under subsection (k) in lieu
9 of the 50% joint and survivor annuity and subject, in certain
10 cases, to his or her eligible spouse's consent, and (3) the
11 participant's right to reinstate coverage under the 50% joint
12 and survivor annuity prior to his or her annuity commencement
13 date by revoking an election of a single-life annuity or an
14 optional form of benefit under subsection (k).
15 (g) If a participant does not have an eligible spouse
16 on the date his or her annuity payments commence, the
17 participant shall receive a single-life annuity, subject to
18 his or her right, if any, to elect an optional form of
19 benefit. The last payment of the single-life annuity shall be
20 made as of the first day of the month in which the death of
21 the participant occurs.
22 (h) A participant with a least 5 years of service whose
23 employment has not terminated shall be covered by the 50%
24 joint and survivor annuity provisions so that if he or she
25 dies prior to termination of employment, his or her eligible
26 spouse will be entitled to receive an annuity. The annuity
27 payable under this subsection (h) to the eligible spouse
28 shall be actuarially equivalent to the amount that would be
29 payable as a survivor annuity under subsection (b) if (1) in
30 the case of a participant who dies after the date on which
31 the participant attained the earliest retirement age, the
32 participant had retired with an immediate qualified joint and
33 survivor annuity on the day before the participant's date of
34 death; or (2) in the case of a participant who dies on or
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1 before the date on which the participant would have attained
2 the earliest retirement age, the participant had separated
3 from service on the date of death, survived to the earliest
4 retirement age, retired with an immediate qualified joint and
5 survivor annuity at the earliest retirement age, and died on
6 the day after the day on which the participant would have
7 attained the earliest retirement age.
8 The annuity payable to an eligible spouse of a
9 participant shall commence as of the beginning of the month
10 next following the later of the date of death or the date the
11 participant would have met the eligibility requirements for
12 an annuity and shall continue through the beginning of the
13 month in which the death of the eligible spouse occurs.
14 No benefit shall be payable under this subsection (h) for
15 death during employment after the participant has satisfied
16 the requirements for retirement if an option is effective
17 under subsection (k).
18 (i) A participant who (1) has terminated employment with
19 at least 5 years of service, (2) has not begun receiving
20 annuity payments, (3) has not taken a refund under Section
21 15-154(a-2), and (4) has not elected an effective option
22 under subsection (k), shall be covered by the 50% joint and
23 survivor annuity provisions of subsection (b) until the date
24 his or her annuity payments commence. If the participant
25 dies before the date his or her annuity payments commence,
26 the participant's surviving eligible spouse shall receive an
27 annuity computed in accordance with the applicable provisions
28 of this Section as if the participant's annuity payments had
29 commenced on the first day of the month coincident with or
30 next following the later of his or her date of death or the
31 date the participant would have been eligible for a
32 retirement annuity based on service prior to his or her
33 death. The annuity payable to such an eligible spouse shall
34 commence on the first day of the month coincident with or
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1 next following the later of the participant's date of death
2 or the date the participant would have been eligible for a
3 retirement annuity based on service prior to his death and
4 shall continue through the beginning of the month in which
5 the death of the eligible spouse occurs.
6 (j) The provisions of subsection (i) shall not affect
7 the right of a participant to elect a single-life annuity,
8 pursuant to the provisions of subsection (b).
9 (k) By filing a timely election with the system, a
10 participant who will be eligible to receive a retirement
11 annuity under this Section may designate his or her spouse or
12 any person approved by the system as his or her contingent
13 annuitant and elect to receive an annuity payable in
14 accordance with one of the following options, instead of the
15 annuity to which he or she may otherwise become entitled:
16 Option 1: The participant shall receive a reduced
17 annuity payable for life, and payments in the amount of
18 100% of such reduced amount shall, after the
19 participant's death, be continued to the contingent
20 annuitant during the latter's lifetime.
21 Option 2: The participant shall receive a reduced
22 annuity payable for life, and payments in the amount of
23 75% of such reduced annuity shall, after the
24 participant's death, be continued to the contingent
25 annuitant during the latter's lifetime.
26 Option 3: The participant shall receive a reduced
27 annuity payable for life, and payments in the amount of
28 50% of such reduced annuity shall, after the
29 participant's death, be continued to the contingent
30 annuitant during the latter's lifetime.
31 The aggregate of the annuity payments expected to be paid
32 to a participant and his contingent annuitant under any of
33 the above options shall be the actuarial equivalent of the
34 annuity that the participant is otherwise entitled to receive
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1 upon retirement.
2 Under no circumstances may an option be elected, changed,
3 or revoked after the date the participant's annuity
4 commences. An option in favor of a contingent annuitant who
5 is not the participant's eligible spouse may be revoked at
6 any time prior to the date the participant's annuity payments
7 commence. If the contingent annuitant under the elected
8 option is not the participant's eligible spouse, then the
9 election is valid only if the eligible spouse consents to the
10 participant's optional election and to the specific
11 contingent annuitant within the 90-day period preceding the
12 date the participant's annuity commences.
13 An election made pursuant to this subsection (k) shall
14 become inoperative if the participant's employment terminates
15 before he or she is eligible for a retirement annuity, or if
16 the participant or the contingent annuitant dies before the
17 date the participant's annuity payments commence, or if the
18 eligible spouse's consent is required and not given. An
19 effective option under this subsection (k) takes the place of
20 any benefit otherwise payable under this Section, and the
21 form made available by the system for election of the option
22 shall so specify.
23 (1) Within the appropriate applicable period under
24 Section 417 of the Internal Revenue Code of 1986, as amended
25 from time to time, a participant shall be supplied with a
26 written explanation of (1) the terms and conditions of the
27 preretirement survivor annuity under subsections (h) and (i),
28 (2) the participant's right, if any, to elect a single-life
29 annuity or an optional form of payment under subsection (k)
30 in lieu of the preretirement survivor annuity and subject, in
31 certain cases, to his or her eligible spouse's consent, and
32 (3) the participant's right to reinstate coverage under the
33 preretirement survivor annuity by revoking an election of a
34 single-life annuity or an optional form of benefit under
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1 subsection (k).
2 (40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
3 Sec. 15-141. Death benefits - Death of participant. The
4 beneficiary of a participant is entitled to a death benefit
5 equal to the sum of (1) the employee's accumulated normal and
6 additional contributions on the date of death, (2) the
7 employee's accumulated survivors insurance contributions on
8 the date of death, if a survivors insurance benefit is not
9 payable, (3) an amount equal to the employee's final rate of
10 earnings, but not more than $5,000 if (i) the beneficiary,
11 under rules of the board, was dependent upon the participant,
12 (ii) the participant was a participating employee immediately
13 prior to his or her death, and (iii) a survivors insurance
14 benefit is not payable, and (4) $2,500 if (i) the beneficiary
15 was not dependent upon the participant, (ii) the participant
16 was a participating employee immediately prior to his or her
17 death, and (iii) a survivors insurance benefit is not
18 payable.
19 However, if the participant has elected to participate in
20 the portable retirement benefit program by making the
21 election specified in Section 15-154(a-1), the death benefit
22 shall be calculated as follows. The death benefit shall be
23 equal to the employee's accumulated normal and additional
24 contributions on the date of death, or if the employee died
25 with 5 or more years of service for employment as defined in
26 Section 15-113.1, his or her beneficiary shall also be
27 entitled to employer contributions in an amount equal to the
28 sum of accumulated normal and additional contributions;
29 except that if a benefit to a surviving spouse is payable
30 under Section 15-136.4, the death benefit payable under this
31 paragraph shall be reduced, but to not less than zero, by the
32 actuarial value of the benefit payable to the surviving
33 spouse.
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1 If payments are made under any State or Federal Workers'
2 Compensation or Occupational Diseases Law because of the
3 death of an employee, the portion of the death benefit
4 payable from employer contributions shall be reduced by the
5 total amount of the payments.
6 (Source: P.A. 87-8.)
7 (40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142)
8 Sec. 15-142. Death benefits - Death of annuitant. Upon
9 the death of an annuitant receiving a retirement annuity or
10 disability retirement annuity, the annuitant's beneficiary
11 shall, if a survivor's insurance benefit is not payable under
12 Section 15-145 or an annuity is not payable under Section
13 15-136.4, be entitled to a death benefit equal to the greater
14 of the following: (1) the excess, if any, of the sum of the
15 accumulated normal, survivors insurance and additional
16 contributions as of the date of retirement, or the date the
17 disability retirement annuity began, whichever is earlier,
18 over the sum of all annuity payments made prior to the date
19 of death, or (2) $1,000.
20 (Source: P.A. 83-1440.)
21 (40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
22 Sec. 15-146. Survivors insurance benefits - Minimum
23 amounts.
24 (a) The minimum total survivors annuity payable on
25 account of the death of a participant shall be 50% of the
26 retirement annuity which would have been provided under Rule
27 1, Rule 2, or Rule 3 of Section 15-136 upon the participant's
28 attainment of the minimum age at which the penalty for early
29 retirement would not be applicable or the date of the
30 participant's death, whichever is later, on the basis of
31 credits earned prior to the time of death.
32 (b) The minimum total survivors annuity payable on
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1 account of the death of an annuitant shall be 50% of the
2 retirement annuity which is payable under Section 15-136 at
3 the time of death or 50% of the disability retirement annuity
4 payable under Section 15-153.2. This minimum survivors
5 annuity shall apply to each participant and annuitant who
6 dies after September 16, 1979, whether or not his or her
7 employee status terminates before or after that date.
8 (c) If an annuitant has elected a reversionary annuity,
9 the retirement annuity referred to in this Section is that
10 which would have been payable had such election not been
11 filed.
12 (d) If a participant has made the election provided for
13 under Section 15-154(a-1), the minimum survivor benefit shall
14 be determined under Section 15-136.4.
15 (Source: P.A. 83-1362; 83-1440.)
16 (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
17 Sec. 15-154. Refunds.
18 (a) A participant whose status as an employee is
19 terminated, regardless of cause, or who has been on lay off
20 status for more than 120 days, and who is not on leave of
21 absence, is entitled to a refund of contributions upon
22 application; except that not more than one such refund
23 application may be made during any academic year.
24 Except as set forth in subsections (a-1) and (a-2), the
25 refund shall be the sum of the accumulated normal, additional
26 and survivors insurance contributions, less the amount of
27 interest credited on these contributions each year in excess
28 of 4 1/2% of the amount on which interest was calculated.
29 (a-1) Every person who becomes a participating employee
30 after the date on which his or her employer first offers an
31 optional retirement program under Section 15-158.2 may elect
32 within 60 days of becoming a participant to have any refund
33 calculated pursuant to subsection (a-2) by forgoing all
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1 survivors insurance benefits to which the person's survivors
2 would otherwise be entitled under this Article. This
3 election is irrevocable and may be made by filing an election
4 with the system on such form as the Executive Director shall
5 prescribe.
6 Each person who is a participating employee on the date
7 on which his or her employer first offers an optional
8 retirement program under Section 15-158.2 shall have a
9 one-time option to elect to have his or her refund calculated
10 pursuant to subsection (a-2), by forgoing all survivors
11 insurance benefits to which the person's survivors would
12 otherwise be entitled under this Article. The election will
13 not be effective until one year after the election is filed
14 with the system. This election is irrevocable and may be
15 made by filing an election with the system, on such form as
16 the Executive Director shall prescribe, within one year after
17 the date on which his or her employer first offers an
18 optional retirement program under Section 15-158.2.
19 A person may make the one-time irrevocable election
20 authorized under this Section or the election authorized
21 under Section 15-158.2(g), but may not make both elections.
22 Any person interested in electing the portable retirement
23 benefit program provided under this Section and Section
24 15-136.4 must be given a consultation with the State
25 Universities Retirement System before making that election.
26 (a-2) The refund elected under subsection (a-1) shall be
27 the sum of the participant's accumulated normal and
28 additional contributions, as defined in Sections 15-116 and
29 15-117. If the participant terminates with 5 or more years
30 of service for employment as defined in Section 15-113.1, he
31 or she shall also be entitled to a refund of employer
32 contributions in an amount equal to the sum of the
33 accumulated normal and additional contributions, as defined
34 in Sections 15-116 and 15-117.
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1 (b) Upon acceptance of a refund, the participant
2 forfeits all accrued rights and credits in the System, and if
3 subsequently reemployed, the participant shall be considered
4 a new employee subject to all the qualifying conditions for
5 participation and eligibility for benefits applicable to new
6 employees. If such person again becomes a participating
7 employee and continues as such for 2 years, or is employed by
8 an employer and participates for at least 2 years in the
9 Federal Civil Service Retirement System, all such rights,
10 credits, and previous status as a participant shall be
11 restored upon repayment of the amount of the refund, together
12 with compound interest thereon from the date the refund was
13 received to the date of repayment at the rate of 6% per annum
14 through August 31, 1982, and at the effective rates after
15 that date.
16 (c) If a participant has made survivors insurance
17 contributions, but has no survivors insurance beneficiary
18 upon retirement, he or she shall be entitled to a refund of
19 the accumulated survivors insurance contributions, or to an
20 additional annuity the value of which is equal to the
21 accumulated survivors insurance contributions.
22 (d) A participant, upon application, is entitled to a
23 refund of his or her accumulated additional contributions
24 except those covering the cost of the annual increase in the
25 retirement annuity provided under Section 15-136. Upon the
26 acceptance of such a refund of accumulated additional
27 contributions, the participant forfeits all rights and
28 credits which may have accrued because of such contributions.
29 (e) A participant who terminates his or her employee
30 status and elects to waive service credit under Section
31 15-154.2, is entitled to a refund of the accumulated normal,
32 additional and survivors insurance contributions, if any,
33 which were credited the participant for this service, or to
34 an additional annuity the value of which is equal to the
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1 accumulated normal, additional and survivors insurance
2 contributions, if any; except that not more than one such
3 refund application may be made during any academic year. Upon
4 acceptance of this refund, the participant forfeits all
5 rights and credits accrued because of this service.
6 (f) If a police officer or firefighter receives a
7 retirement annuity under Rule 1, 2, or 3 of Section 15-136,
8 he or she shall be entitled at retirement to a refund of the
9 difference between his or her accumulated normal
10 contributions and the normal contributions which would have
11 accumulated had such person filed a waiver of the retirement
12 formula provided by Rule 4 of Section 15-136.
13 (g) If, at the time of retirement, a participant would
14 be entitled to a retirement annuity under Rule 1, 2, 3 or 4
15 of Section 15-136 that exceeds the maximum specified in
16 clause (1) of subsection (c) of Section 15-136, he or she
17 shall be entitled to a refund of the employee contributions,
18 if any, paid under Section 15-157 after the date upon which
19 continuance of such contributions would have otherwise caused
20 the retirement annuity to exceed this maximum, plus compound
21 interest at the effective rates.
22 (Source: P.A. 87-8; 87-794; 87-895; 87-1265; 88-45.)
23 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
24 Sec. 15-157. Employee Contributions.
25 (a) Each participating employee shall make contributions
26 towards the retirement annuity of each payment of earnings
27 applicable to employment under this system on and after the
28 date of becoming a participant as follows: Prior to
29 September 1, 1949, 3 1/2% of earnings; from September 1, 1949
30 to August 31, 1955, 5%; from September 1, 1955 to August 31,
31 1969, 6%; from September 1, 1969, 6 1/2%. These
32 contributions are to be considered as normal contributions
33 for purposes of this Article.
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1 Each participant who is a police officer or firefighter
2 shall make normal contributions of 8% of each payment of
3 earnings applicable to employment as a police officer or
4 firefighter under this system on or after September 1, 1981,
5 unless he or she files with the board within 60 days after
6 the effective date of this amendatory Act of 1991 or 60 days
7 after the board receives notice that he or she is employed as
8 a police officer or firefighter, whichever is later, a
9 written notice waiving the retirement formula provided by
10 Rule 4 of Section 15-136. This waiver shall be irrevocable.
11 If a participant had met the conditions set forth in Section
12 15-132.1 prior to the effective date of this amendatory Act
13 of 1991 but failed to make the additional normal
14 contributions required by this paragraph, he or she may elect
15 to pay the additional contributions plus compound interest at
16 the effective rate. If such payment is received by the
17 board, the service shall be considered as police officer
18 service in calculating the retirement annuity under Rule 4 of
19 Section 15-136.
20 (b) Starting September 1, 1969, each participating
21 employee shall make additional contributions of 1/2 of 1% of
22 earnings to finance a portion of the cost of the annual
23 increases in retirement annuity provided under Section
24 15-136.
25 (c) Each participating employee shall make additional
26 survivors insurance contributions of 1% of earnings
27 applicable under this system on and after August 1, 1959.
28 The contribution made under this subsection shall be used to
29 finance survivors insurance benefits, unless the participant
30 has made an election under Section 15-154(a-1), in which case
31 the contribution made under this subsection shall be used to
32 finance the benefits obtained under that election.
33 Contributions in excess of $80 during any fiscal year
34 beginning August 31, 1969 and in excess of $120 during any
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1 fiscal year thereafter until September 1, 1971 shall be
2 considered as additional contributions for purposes of this
3 Article.
4 (d) If the board by board rule so permits and subject to
5 such conditions and limitations as may be specified in its
6 rules, a participant may make other additional contributions
7 of such percentage of earnings or amounts as the participant
8 shall elect in a written notice thereof received by the
9 board.
10 (e) That fraction of a participant's total accumulated
11 normal contributions, the numerator of which is equal to the
12 number of years of service in excess of that which is
13 required to qualify for the maximum retirement annuity, and
14 the denominator of which is equal to the total service of the
15 participant, shall be considered as accumulated additional
16 contributions. The determination of the applicable maximum
17 annuity and the adjustment in contributions required by this
18 provision shall be made as of the date of the participant's
19 retirement.
20 (f) Notwithstanding the foregoing, a participating
21 employee shall not be required to make contributions under
22 this Section after the date upon which continuance of such
23 contributions would otherwise cause his or her retirement
24 annuity to exceed the maximum retirement annuity as specified
25 in clause (1) of subsection (c) of Section 15-136.
26 (Source: P.A. 86-272; 86-1488.)
27 (40 ILCS 5/15-158.2)
28 Sec. 15-158.2. Optional retirement program for
29 educational employees.
30 (a) Purpose. The General Assembly finds that it is
31 important for colleges and universities to be able to attract
32 and retain the most qualified employees and that in order to
33 attract and retain these employees, colleges and universities
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1 should have the flexibility to provide an alternative
2 retirement program for eligible employees persons who elect
3 not to participate in the other retirement programs plan of
4 contributions and benefits otherwise provided under this
5 Article.
6 (b) Definitions. For the purposes of this Section,
7 "eligible employee person" means an employee who is eligible
8 to participate in the State Universities University
9 Retirement System without respect to Section 15-107(a)(9) and
10 who does not have sufficient age and service to qualify for a
11 retirement annuity under Section 15-135. A "currently
12 eligible employee person" is an employee a person who becomes
13 an eligible employee person on the effective date of the
14 optional retirement program established by the employee's
15 person's employer. A "newly eligible employee person" is an
16 employee a person who becomes an eligible employee person
17 after the effective date of the optional retirement program
18 established by the employee's person's employer.
19 (c) Program. Each employer subject to this Article may
20 elect to establish an optional retirement program under this
21 Section for the eligible employees whom persons that it
22 employs. The optional retirement program shall provide
23 retirement benefits for participating employees persons
24 through the purchase of annuity contracts, either fixed or
25 variable or a combination thereof, through the purchase of
26 mutual funds, or through both and shall may also provide for
27 death and disability benefits.
28 The State Universities Retirement System shall be the
29 plan sponsor for the program. Consistent with its fiduciary
30 duty to the participants and beneficiaries of the program,
31 the Board of Trustees of the System may delegate aspects of
32 program administration as it sees fit to The program may
33 provide for administration of the program by companies
34 authorized to do business in this State, to or the employers,
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1 employer or to a combination of both, but shall not require
2 any action by the State Universities Retirement System or its
3 Board of Trustees. Two or more employers may agree to
4 establish a joint program under this Section.
5 The plan program must be qualified under the Internal
6 Revenue Code of 1986.
7 (d) Proposals. The System, in consultation with the
8 employers, An employer under this Section shall solicit
9 proposals to participate in the program from insurance and
10 annuity companies and mutual fund companies authorized to do
11 conduct such business in this State. In reviewing the
12 proposals received and approving and contracting with no
13 fewer than 2 and no more than 7 companies, at least 2 of
14 which must be insurance and annuity companies, the Board of
15 Trustees of the System deciding to implement a program, the
16 employer shall consider, among other things, the following
17 criteria:
18 (1) the nature and extent of the benefits that
19 would be provided to the participants;
20 (2) the reasonableness of the benefits in relation
21 to the premium charged;
22 (3) the suitability of the benefits to the needs
23 and interests of the participating employees persons and
24 the employer;
25 (4) the ability of the company to provide benefits
26 under the contract and the financial stability of the
27 company; and
28 (5) the efficacy of the contract in the recruitment
29 and retention of employees.
30 An employer that elects to offer an optional retirement
31 program under subsection (c) may only select for
32 participation in the program 2 or more of the companies
33 approved by the Board of Trustees of the System. The System,
34 in consultation with the employers, shall periodically review
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1 each approved company; a company may continue to participate
2 in the program only so long as it continues to be an approved
3 company under contract with the Board.
4 (e) System Conflict of Interest. In order to preclude
5 any conflict of interest by the System, only insurance and
6 annuity companies and mutual fund companies that are
7 authorized to do business in this State may be approved, in
8 accordance with the procedures of subsection (d), to
9 participate in this program and offer investment options for
10 program participants.
11 (f) Account Balance Transfers. Employees who are
12 participating in the program must be allowed to transfer
13 their account balances from the investment options offered by
14 one of the companies selected by the employer to the
15 investment options offered by another company so selected,
16 subject to applicable contractual provisions.
17 (g) (e) Participation. Any eligible employee person
18 employed by an employer may elect to participate in the
19 optional retirement program offered by the employer under
20 subsection (c) that employer's optional retirement program.
21 The election must be made in writing and in the manner
22 prescribed by the System employer. A currently eligible
23 employee person must make take this election within one year
24 after the effective date of the employer's optional
25 retirement program. A newly eligible employee person must
26 make take this election within 60 days after becoming an
27 eligible employee person. A person may make the one-time
28 irrevocable election authorized under this Section or the
29 election authorized under Section 15-154(a-1), but may not
30 make both elections. The employer shall not remit
31 contributions on behalf of a newly eligible employee to
32 either the optional retirement program or to the State
33 Universities Retirement System until the 60-day period has
34 run unless an election by the employee has been made earlier.
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1 Any eligible employee person interested in electing the
2 optional retirement program provided under this Section must
3 be given a consultation with the State Universities
4 Retirement System before making that an election.
5 Participation in the optional retirement program shall
6 begin on the first day of the first pay period following the
7 date of election, but no earlier than January 1, 1998 July 1,
8 1996. The employee's person's participation in any other
9 retirement program administered by the System under this
10 Article the System, if any, with respect to the qualifying
11 employment shall terminate on the date that participation in
12 the optional retirement program begins, and the employee
13 person shall thereby be deemed to have elected to receive a
14 refund of contributions as provided in Section 15-154, except
15 that such deemed refund shall include interest at the
16 effective rate for the respective years, and except that any
17 funds which would have been received shall instead be
18 transferred directly to the optional retirement program as a
19 tax free transfer in accordance with Internal Revenue Service
20 guidelines.
21 Notwithstanding any other provision of this Code, an
22 employee a person may not purchase or receive service or
23 service credit applicable to any other retirement program
24 administered by the System under this Article in this System
25 for any period during which the employee was a participant
26 person was not a participant in the System due to an election
27 to participate in the an optional retirement program
28 established under this Section.
29 An employee A person who has elected to participate in
30 the an optional retirement program under this Section must
31 continue participation while employed in an eligible
32 position, and may not participate in any other retirement
33 program administered by the System under this Article return
34 to participation in this System while employed by that
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1 employer, unless the optional retirement program is
2 terminated in accordance with subsection (i) (g).
3 Participation in the optional retirement program under
4 this Section shall constitute membership in the State
5 Universities Retirement System, although a participant under
6 this Section shall not be entitled to receive any benefits
7 under any other provisions of Article 15 or of Article 20.
8 An employee who receives a disability benefit or a retirement
9 benefit under this Section or an employee who receives a lump
10 sum distribution from a mutual fund company under this
11 Section and uses the lump sum to purchase an annuity shall be
12 considered an employee or an annuitant under Article 15 for
13 purposes of the State Employees Group Insurance Act of 1971.
14 Participation in the optional retirement program under this
15 Section creates a contractual relationship with respect to
16 the investment of the employee's account balance between the
17 employee and the company providing the investment options for
18 the employee's account balance. Participation does not
19 create a contractual relationship between the employee and
20 the System or between the employee and his or her employer.
21 Participation in an optional retirement program
22 established under this Section does not constitute membership
23 or participation in the State Universities Retirement System
24 or any other pension fund or retirement system of the State.
25 Participation in an optional retirement program established
26 under this Section creates a contractual relationship only
27 between the person and the company providing the optional
28 retirement program, and not between the person and the System
29 or the person's employer.
30 (h) (f) Contributions. The contribution rate for
31 employees persons participating in the an optional retirement
32 program under this Section shall be equal to the employee
33 contribution rate for other participants in the System. This
34 required contribution may be made as an "employer pick-up"
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1 under Section 414(h) of the Internal Revenue Code of 1986 or
2 any successor Section. Any employee person participating in
3 the System or who elects to participate in the optional
4 retirement program shall continue to have the employer
5 "pick-up" the contribution. However, amounts picked up after
6 the election of the optional retirement program shall be
7 remitted to the optional retirement plan. In no event shall
8 an employee have an option of receiving these amounts in
9 cash. The program shall provide for employer contributions
10 at a rate of no more than 7.6% of the participating
11 employee's person's salary. The An optional retirement
12 program shall be funded by contributions from employees
13 persons participating in the program and employer
14 contributions as required by the plan. The plan shall be
15 funded in a manner consistent with the requirements of the
16 Internal Revenue Code Section 412, and regulations
17 promulgated thereunder, and Proposed Regulation 412(b)-1(a)
18 as that Section applies those Sections apply to money
19 purchase plans.
20 The State of Illinois shall make contributions by
21 appropriations to the System of the employer contributions
22 required for employees who participate in the optional
23 retirement program under this Section. The amount required
24 shall be certified by the Board of Trustees of the System and
25 paid by the State in accordance with Section 15-165. The
26 System shall not be obligated to remit the required employer
27 contributions to any insurance and annuity and mutual fund
28 companies participating in the optional retirement program
29 under subsection (d) until it has received the required
30 employer contributions from the State. In the event of a
31 deficiency in the amount of State contributions, the System
32 shall implement those procedures described in subsection (c)
33 of Section 15-165 to obtain the required funding from the
34 General Revenue Fund.
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1 The contributions and interest thereon, and any benefits
2 based upon them, shall be treated as provided in the funding
3 vehicles for this plan. An amount of up to 1% of each
4 participating employee's participant's salary shall may be
5 taken from the employer contribution to the optional
6 retirement program and shall may be contributed, on the
7 employee's participant's behalf, to a plan which the System
8 offers employer sets up to provide for life or disability
9 benefits.
10 (i) (g) Termination. An optional retirement program
11 authorized established under this Section may be terminated
12 by the employer, subject to the terms of any relevant
13 contracts, and the employer shall have no obligation to
14 reestablish an optional retirement renew any contract or
15 program established under this Section. This Section does
16 not create a right to continued continue participation in any
17 optional retirement program set up by an employer established
18 under this Section. If an optional retirement program is
19 terminated, the participants shall have the right to
20 participate in one of the other retirement programs offered
21 by the System and receive service credit in such other
22 retirement program for any years of employment following the
23 termination.
24 (j) (h) Vesting. Employer contributions shall be vested
25 after five years of employment. If an employee a participant
26 terminates employment prior to completing five years of
27 service, the employee participant shall be entitled to a
28 benefit in accordance with the terms of the employer's
29 retirement plan which is based on the accumulation value
30 attributable to the employee's participant's contributions
31 and any investment return experience thereon. Benefits for
32 employees participants who terminate with at least five years
33 of service shall be in accordance with the terms of the
34 optional employer's retirement plan and based on the
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1 accumulation value attributable to both the employer and the
2 employee's participant's contributions and any investment
3 return experience thereon. Any employer contributions which
4 are forfeited shall be held in escrow by the funding company
5 investing those contributions and shall be used to reduce the
6 next premium payment due from the employer.
7 (Source: P.A. 89-430, eff. 12-15-95.)
8 (40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
9 Sec. 15-165. To certify amounts and submit vouchers.
10 (a) The Board shall certify to the Governor on or before
11 November 15 of each year the appropriation required from
12 State funds for the purposes of this System for the following
13 fiscal year. The certification shall include a copy of the
14 actuarial recommendations upon which it is based.
15 (b) The Board shall certify to the State Comptroller or
16 employer, as the case may be, from time to time, by its
17 president and secretary, with its seal attached, the amounts
18 payable to the System from the various funds.
19 (c) Beginning in State fiscal year 1996, on or as soon
20 as possible after the 15th day of each month the Board shall
21 submit vouchers for payment of State contributions to the
22 System, in a total monthly amount of one-twelfth of the
23 required annual State contribution certified under subsection
24 (a). These vouchers shall be paid by the State Comptroller
25 and Treasurer by warrants drawn on the funds appropriated to
26 the System for that fiscal year.
27 If in any month the amount remaining unexpended from all
28 other appropriations to the System for the applicable fiscal
29 year (including the appropriations to the System under
30 Section 8.12 of the State Finance Act and Section 1 of the
31 State Pension Funds Continuing Appropriation Act) is less
32 than the amount lawfully vouchered under this Section, the
33 difference shall be paid from the General Revenue Fund under
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1 the continuing appropriation authority provided in Section
2 1.1 of the State Pension Funds Continuing Appropriation Act.
3 (d) So long as the payments received are the full amount
4 lawfully vouchered under this Section, payments received by
5 the System under this Section shall be applied first toward
6 the employer contribution to the optional retirement program
7 established under Section 15-158.2. Payments shall be
8 applied second toward the employer's portion of the normal
9 costs of the System, as defined in subsection (f) of Section
10 15-155. The balance shall be applied toward the unfunded
11 actuarial liabilities of the System.
12 (e) In the event that the System does not receive, as a
13 result of legislative enactment or otherwise, payments
14 sufficient to fully fund the employer contribution to the
15 optional retirement program established under Section
16 15-158.2 and to fully fund that portion of the employer's
17 portion of the normal costs of the System, as calculated in
18 accordance with Section 15-155(a-1), then any payments
19 received shall be applied proportionately to the optional
20 retirement program established under Section 15-158.2 and to
21 the employer's portion of the normal costs of the System, as
22 calculated in accordance with Section 15-155(a-1).
23 (Source: P.A. 88-593, eff. 8-22-94.)
24 Section 15. The State Pension Funds Continuing
25 Appropriation Act is amended by changing Section 1.1 as
26 follows:
27 (40 ILCS 15/1.1)
28 Sec. 1.1. Appropriations to certain retirement systems.
29 (a) There is hereby appropriated from the General
30 Revenue Fund to the General Assembly Retirement System, on a
31 continuing monthly basis, the amount, if any, by which the
32 total available amount of all other appropriations to that
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1 retirement system for the payment of State contributions is
2 less than the total amount of the vouchers for required State
3 contributions lawfully submitted by the retirement system for
4 that month under Section 2-134 of the Illinois Pension Code.
5 (b) There is hereby appropriated from the General
6 Revenue Fund to the State Universities Retirement System, on
7 a continuing monthly basis, the amount, if any, by which the
8 total available amount of all other appropriations to that
9 retirement system for the payment of State contributions,
10 including any deficiency in the required contributions of the
11 optional retirement program established under Section
12 15-158.2 of the Illinois Pension Code, is less than the total
13 amount of the vouchers for required State contributions
14 lawfully submitted by the retirement system for that month
15 under Section 15-165 of the Illinois Pension Code.
16 (c) There is hereby appropriated from the Common School
17 Fund to the Teachers' Retirement System of the State of
18 Illinois, on a continuing monthly basis, the amount, if any,
19 by which the total available amount of all other
20 appropriations to that retirement system for the payment of
21 State contributions is less than the total amount of the
22 vouchers for required State contributions lawfully submitted
23 by the retirement system for that month under Section 16-158
24 of the Illinois Pension Code.
25 (d) There is hereby appropriated from the General
26 Revenue Fund to the Judges Retirement System of Illinois, on
27 a continuing monthly basis, the amount, if any, by which the
28 total available amount of all other appropriations to that
29 retirement system for the payment of State contributions is
30 less than the total amount of the vouchers for required State
31 contributions lawfully submitted by the retirement system for
32 that month under Section 18-140 of the Illinois Pension Code.
33 (e) The continuing appropriations provided by this
34 Section shall first be available in State fiscal year 1996.
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1 (Source: P.A. 88-593, eff. 8-22-94.)
2 Section 20. The Illinois Pension Code is amended by
3 changing Sections 7-109.3, 7-111, 7-113, 7-116, 7-118,
4 7-132.2, 7-139, 7-145, 7-171, and 7-172 and adding Section
5 7-199.3 as follows:
6 (40 ILCS 5/7-109.3) (from Ch. 108 1/2, par. 7-109.3)
7 Sec. 7-109.3. "Sheriff's Law Enforcement Employees".
8 (a) "Sheriff's law enforcement employee" means:
9 (1) A county sheriff and all deputies, other than
10 special deputies, employed on a full time basis in the
11 office of the sheriff.
12 (2) A person who has elected to participate in this
13 Fund under Section 3-109.1 of this Code, and who is
14 employed by a participating municipality to perform
15 police duties.
16 (3) A law enforcement officer employed on a full
17 time basis by a Forest Preserve District, provided that
18 such officer shall be deemed a "sheriff's law enforcement
19 employee" for the purposes of this Article, and service
20 in that capacity shall be deemed to be service as a
21 sheriff's law enforcement employee, only if the board of
22 commissioners of the District have so elected by adoption
23 of an affirmative resolution. Such election, once made,
24 may not be rescinded.
25 (4) A person not eligible to participate in a fund
26 established under Article 3 of this Code who is employed
27 on a full-time basis by a participating municipality or
28 participating instrumentality to perform police duties at
29 an airport, but only if the governing authority of the
30 employer has approved sheriff's law enforcement employee
31 status for its airport police employees by adoption of an
32 affirmative resolution. Such approval, once given, may
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1 not be rescinded.
2 (b) An employee who is a sheriff's law enforcement
3 employee and prior to the time for which he is granted
4 military leave or authorized leave of absence shall receive
5 service credit in that capacity. Sheriff's law enforcement
6 employees shall not be entitled to out of State service
7 credit under Section 7-139.
8 (Source: P.A. 86-273; 87-850.)
9 (40 ILCS 5/7-111) (from Ch. 108 1/2, par. 7-111)
10 Sec. 7-111. "Prior Service": The period beginning on
11 the day a participating employee first became an employee of
12 a municipality, or of an instrumentality thereof, or of a
13 municipality or instrumentality that was superseded by the
14 employing participating municipality, or of a participating
15 instrumentality, and ending on the effective date of
16 participation of the municipality or participating
17 instrumentality, or upon the latest termination of service
18 prior to such effective date, but excluding (a) the
19 intervening periods during which the employee was separated
20 from the service of the municipality and all
21 instrumentalities thereof, or of the participating
22 instrumentality, or (b) periods during which the employee was
23 employed in a position normally requiring less than 600 hours
24 of service during a year, and or (c) periods during which the
25 employee served by persons beginning participating employment
26 in a position normally requiring performance of duty less
27 than 1000 hours per year, if the with a participating
28 municipality or participating instrumentality adopted, which
29 prior to its effective the date of participation, it is
30 included and subject to this Article adopts a resolution or
31 ordinance excluding persons in such positions from
32 participation.
33 (Source: P.A. 82-459.)
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1 (40 ILCS 5/7-113) (from Ch. 108 1/2, par. 7-113)
2 Sec. 7-113. "Creditable Service": All periods of prior
3 service or current service for which credits are granted
4 under the provisions of Section 7-139, including all periods
5 during which a participating employee was an employee of a
6 municipality or instrumentality which was superseded by the
7 employing participating municipality.
8 (Source: Laws 1967, p. 2091.)
9 (40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
10 Sec. 7-116. "Final rate of earnings":
11 (a) For retirement and survivor annuities, the monthly
12 earnings obtained by dividing the total earnings received by
13 the employee during the period of either (1) the 48
14 consecutive months of service within the last 120 months of
15 service in which his total earnings were the highest, or (2)
16 the employee's (his total period of service,) by the number
17 of months of service in such period.
18 (b) For death benefits, the higher of the rate
19 determined under paragraph (a) of this Section or total
20 earnings received in the last 12 months of service divided by
21 twelve. If the deceased employee has less than 12 months of
22 service, the monthly final rate shall be the monthly rate of
23 pay the employee was receiving when he began service.
24 (c) For disability benefits, the total earnings of a
25 participating employee in the last 12 calendar months of
26 service prior to the date he becomes disabled divided by 12.
27 (d) In computing the final rate of earnings: (1) the
28 earnings rate for all periods of prior service shall be
29 considered equal to the average earnings rate for the last 3
30 calendar years of prior service for which creditable service
31 is received under Section 7-139 most immediately preceding
32 the effective date, or, if there is less than 3 years of
33 creditable prior service, the average for the total prior
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1 service period for which creditable service is received under
2 Section 7-139; (2) for out of state service and authorized
3 leave, the earnings rate shall be the rate upon which service
4 credits are granted; (3) periods of military leave shall not
5 be considered; (4) the earnings rate for all periods of
6 disability shall be considered equal to the rate of earnings
7 upon which the employee's disability benefits are computed
8 for such periods; (5) the earnings to be considered for each
9 of the final three months of the final earnings period shall
10 not exceed 125% of the highest earnings of any other month in
11 the final earnings period; and (6) the annual amount of final
12 rate of earnings shall be the monthly amount multiplied by
13 the number of months of service normally required by the
14 position in a year.
15 (Source: P.A. 78-255.)
16 (40 ILCS 5/7-118) (from Ch. 108 1/2, par. 7-118)
17 Sec. 7-118. "Beneficiary":
18 (a) The surviving spouse of an employee or of an
19 employee annuitant, or if no surviving spouse survives, the
20 person or persons designated by a participating employee or
21 employee annuitant, or if no person so designated survives,
22 or if no designation is on file, the estate of the employee
23 or employee annuitant. The person or persons designated by a
24 beneficiary annuitant, or if no person designated survives,
25 or if no designation is on file, the estate of the
26 beneficiary annuitant. The estate of a surviving spouse
27 annuitant where the employee or employee annuitant filed no
28 designation, or no person designated survives at the death of
29 a surviving spouse annuitant. Designations of beneficiaries
30 shall be in writing on forms prescribed by the board and
31 effective upon filing in the fund offices. The designation
32 forms shall provide for contingent beneficiaries. Divorce,
33 dissolution or annulment of marriage revokes the designation
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1 of an employee's former spouse as a beneficiary on a
2 designation executed before entry of judgment for divorce,
3 dissolution or annulment of marriage.
4 (b) Notwithstanding the foregoing, an employee, former
5 employee who has not yet received a retirement annuity or
6 separation benefit, or employee annuitant may elect to name
7 any person, trust or charity to be the primary beneficiary of
8 any death benefit payable by reason of his death. Such
9 election shall state specifically whether it is his intention
10 to exclude the spouse, shall be in writing, and may be
11 revoked at any time. Such election or revocation shall take
12 effect upon being filed in the fund offices.
13 (c) If a surviving spouse annuity is payable to a former
14 spouse upon the death of an employee annuitant, the former
15 spouse, unless designated by the employee annuitant after
16 dissolution of the marriage, shall not be the beneficiary for
17 the purposes of the $3,000 death benefit payable under
18 subparagraph 6 of Section 7-164. This benefit shall be paid
19 to the designated beneficiary of the employee annuitant or,
20 if there is no designation, then to the estate of the
21 employee annuitant.
22 (Source: P.A. 89-136, eff. 7-14-95.)
23 (40 ILCS 5/7-132.2) (from Ch. 108 1/2, par. 7-132.2)
24 Sec. 7-132.2. Regional office of education Educational
25 Service Regions.
26 (a) A regional office of education serving 2 Educational
27 Service Regions comprised of two or more counties, except
28 those serving including a county of 1,000,000 inhabitants or
29 more, formed pursuant to Article 3A of the School Code shall
30 be included within and be subject to this Article, effective
31 as of the effective date of consolidation. For the purpose
32 of this Article, a regional office of education serving 2 an
33 Educational Service Region comprised of two or more counties
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1 shall be considered a participating instrumentality but the
2 requirements of Sections 7-106 and 7-132 shall not apply to
3 it. Each county served by a regional office of education
4 that serves 2 in an Educational Service Region comprised of
5 two or more counties shall pay its proportional cost of the
6 office's region's municipality contributions. This cost
7 shall be included in the budget prepared under and
8 apportioned in the manner provided by Section 3A-7 of the
9 School Code. Each county may include the cost for its share
10 of the municipality contributions required for the regional
11 office of education region in its appropriation and tax levy
12 under Section 7-171 of this Article.
13 (b) At the request of the county, the Board may
14 designate any participating regional office of education
15 Educational Service Region to be a separate reporting entity
16 distinct from the county.
17 (Source: P.A. 87-740.)
18 (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
19 Sec. 7-139. Credits and creditable service to employees.
20 (a) Each participating employee shall be granted credits
21 and creditable service, for purposes of determining the
22 amount of any annuity or benefit to which he or a beneficiary
23 is entitled, as follows:
24 1. For prior service: Each participating employee who is
25 an employee of a participating municipality or participating
26 instrumentality on the effective date shall be granted
27 creditable service, but no credits under paragraph 2 of this
28 subsection (a), for periods his entire period of prior
29 service for which credit has not been received under any
30 other pension fund or retirement system established under
31 this Code, as follows:.
32 If the effective date of participation for the
33 participating municipality or participating instrumentality
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1 is on or before January 1, 1998, creditable service shall be
2 granted for the entire period of prior service with that
3 employer without any employee contribution.
4 If the effective date of participation for the
5 participating municipality or participating instrumentality
6 is after January 1, 1998, creditable service shall be granted
7 for the last 20% of the period of prior service with that
8 employer, but no more than 5 years, without any employee
9 contribution. A participating employee may establish
10 creditable service for the remainder of the period of prior
11 service with that employer by making an application in
12 writing, accompanied by payment of an employee contribution
13 in an amount determined by the Fund, based on the employee
14 contribution rates in effect at the time of application for
15 the creditable service and the employee's salary rate on the
16 effective date of participation for that employer, plus
17 interest at the effective rate from the date of the prior
18 service to the date of payment. Application for this
19 creditable service may be made at any time while the employee
20 is still in service.
21 Any person who has withdrawn from the service of a
22 participating municipality or participating instrumentality
23 prior to the effective date, who reenters the service of the
24 same municipality or participating instrumentality after the
25 effective date and becomes a participating employee is
26 entitled to creditable service for prior service as otherwise
27 provided in this subdivision (a)(1) only if he or she renders
28 2 years of service as a participating employee after the
29 effective date. provided Application for such service must
30 be is made while in a participating status. The salary rate
31 to be used in the calculation of the required employee
32 contribution, if any, shall be the employee's salary rate at
33 the time of first reentering service with the employer after
34 the employer's effective date of participation.
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1 2. For current service, each participating employee
2 shall be credited with:
3 a. Additional credits of amounts equal to each
4 payment of additional contributions received from him
5 under Section 7-173, as of the date the corresponding
6 payment of earnings is payable to him.
7 b. Normal credits of amounts equal to each payment
8 of normal contributions received from him, as of the date
9 the corresponding payment of earnings is payable to him,
10 and normal contributions made for the purpose of
11 establishing out-of-state service credits as permitted
12 under the conditions set forth in paragraph 6 of this
13 subsection (a).
14 c. Municipality credits in an amount equal to 1.4
15 times the normal credits, except those established by
16 out-of-state service credits, as of the date of
17 computation of any benefit if these credits would
18 increase the benefit.
19 d. Survivor credits equal to each payment of
20 survivor contributions received from the participating
21 employee as of the date the corresponding payment of
22 earnings is payable, and survivor contributions made for
23 the purpose of establishing out-of-state service credits.
24 3. For periods of temporary and total and permanent
25 disability benefits, each employee receiving disability
26 benefits shall be granted creditable service for the period
27 during which disability benefits are payable. Normal and
28 survivor credits, based upon the rate of earnings applied for
29 disability benefits, shall also be granted if such credits
30 would result in a higher benefit to any such employee or his
31 beneficiary.
32 4. For authorized leave of absence without pay: A
33 participating employee shall be granted credits and
34 creditable service for periods of authorized leave of absence
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1 without pay under the following conditions:
2 a. An application for credits and creditable
3 service is shall be submitted to the board while the
4 employee is in a status of active employment, and within
5 2 years after termination of the leave of absence period
6 for which credits and creditable service are sought.
7 b. Not more than 12 complete months of creditable
8 service for authorized leave of absence without pay shall
9 be counted for purposes of determining any benefits
10 payable under this Article.
11 c. Credits and creditable service shall be granted
12 for leave of absence only if such leave is approved by
13 the governing body of the municipality, including
14 approval of the estimated cost thereof to the
15 municipality as determined by the fund, and employee
16 contributions, plus interest at the effective rate
17 applicable for each year from the end of the period of
18 leave to date of payment, have been paid to the fund in
19 accordance with Section 7-173. The contributions shall
20 be computed upon the assumption earnings continued during
21 the period of leave at the rate in effect when the leave
22 began.
23 d. Benefits under the provisions of Sections 7-141,
24 7-146, 7-150 and 7-163 shall become payable to employees
25 on authorized leave of absence, or their designated
26 beneficiary, only if such leave of absence is creditable
27 hereunder, and if the employee has at least one year of
28 creditable service other than the service granted for
29 leave of absence. Any employee contributions due may be
30 deducted from any benefits payable.
31 e. No credits or creditable service shall be
32 allowed for leave of absence without pay during any
33 period of prior service.
34 5. For military service: The governing body of a
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1 municipality or participating instrumentality may elect to
2 allow creditable service to participating employees who leave
3 their employment to serve in the armed forces of the United
4 States for all periods of such service, provided that the
5 such person returns to active employment within 90 days after
6 completion of full time active duty, but no creditable
7 service shall be allowed such person for any period that can
8 be used in the computation of a pension or any other pay or
9 benefit, other than pay for active duty, for service in any
10 branch of the armed forces of the United States. If
11 necessary to the computation of any benefit, the board shall
12 establish municipality credits for participating employees
13 under this paragraph on the assumption that the employee
14 received earnings at the rate received at the time he left
15 the employment to enter the armed forces. A participating
16 employee in the armed forces shall not be considered an
17 employee during such period of service and no additional
18 death and no disability benefits are payable for death or
19 disability during such period.
20 Any participating employee who left his employment with a
21 municipality or participating instrumentality to serve in the
22 armed forces of the United States and who again became a
23 participating employee within 90 days after completion of
24 full time active duty by entering the service of a different
25 municipality or participating instrumentality, which has
26 elected to allow creditable service for periods of military
27 service under the preceding paragraph, shall also be allowed
28 creditable service for his period of military service on the
29 same terms that would apply if he had been employed, before
30 entering military service, by the municipality or
31 instrumentality which employed him after he left the military
32 service and the employer costs arising in relation to such
33 grant of creditable service shall be charged to and paid by
34 that municipality or instrumentality.
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1 Notwithstanding the foregoing, any participating employee
2 shall be entitled to creditable service as required by any
3 federal law relating to re-employment rights of persons who
4 served in the United States Armed Services. Such creditable
5 service shall be granted upon payment by the member of an
6 amount equal to the employee contributions which would have
7 been required had the employee continued in service at the
8 same rate of earnings during the military leave period, plus
9 interest at the effective rate.
10 5.1. In addition to any creditable service established
11 under paragraph 5 of this subsection (a), creditable service
12 may be granted for up to 24 months of service in the armed
13 forces of the United States.
14 In order to receive creditable service for military
15 service under this paragraph 5.1, a participating employee
16 must (1) apply to the Fund in writing and provide evidence of
17 the military service that is satisfactory to the Board; (2)
18 obtain the written approval of the current employer; and (3)
19 make contributions to the Fund equal to (i) the employee
20 contributions that would have been required had the service
21 been rendered as a member, plus (ii) an amount determined by
22 the board to be equal to the employer's normal cost of the
23 benefits accrued for that military service, plus (iii)
24 interest on items (i) and (ii) from the date of first
25 membership in the Fund to the date of payment. If payment is
26 made during the 6-month period that begins 3 months after the
27 effective date of this amendatory Act of 1997, the required
28 interest shall be at the rate of 2.5% per year, compounded
29 annually; otherwise, the required interest shall be
30 calculated at the regular interest rate.
31 6. For out-of-state service: Creditable service shall be
32 granted for service rendered to an out-of-state local
33 governmental body under the following conditions: The
34 employee had participated and has irrevocably forfeited all
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1 rights to benefits in the out-of-state public employees
2 pension system; the governing body of his participating
3 municipality or instrumentality authorizes the employee to
4 establish such service; the employee has 2 years current
5 service with this municipality or participating
6 instrumentality; the employee makes a payment of
7 contributions, which shall be computed at 8% (normal) plus 2%
8 (survivor) times length of service purchased times the
9 average rate of earnings for the first 2 years of service
10 with the municipality or participating instrumentality whose
11 governing body authorizes the service established plus
12 interest at the effective rate on the date such credits are
13 established, payable from the date the employee completes the
14 required 2 years of current service to date of payment. In
15 no case shall more than 120 months of creditable service be
16 granted under this provision.
17 7. For retroactive service: Any employee who could have
18 but did not elect to become a participating employee, or who
19 should have been a participant in the Municipal Public
20 Utilities Annuity and Benefit Fund before that fund was
21 superseded, may receive creditable service for the period of
22 service not to exceed 50 months. Any employee who is a
23 participating employee on or after September 24, 1981 and who
24 was excluded from participation by the age restrictions
25 removed by Public Act 82-596 may receive creditable service
26 for the period, on or after January 1, 1979, excluded by the
27 age restriction and, in addition, if the governing body of
28 the participating municipality or participating
29 instrumentality elects to allow creditable service for all
30 employees excluded by the age restriction prior to January 1,
31 1979, for service during the period prior to that date
32 excluded by the age restriction. Any employee who was
33 excluded from participation by the age restriction removed by
34 Public Act 82-596 and who is not a participating employee on
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1 or after September 24, 1981 may receive creditable service
2 for service after January 1, 1979. Creditable service under
3 this paragraph shall be granted upon payment of the employee
4 contributions which would have been required had he
5 participated, with interest at the effective rate for each
6 year from the end of the period of service established to
7 date of payment.
8 8. For accumulated unused sick leave: A participating
9 employee who is applying for a retirement annuity shall be
10 entitled to creditable service for that portion of the
11 employee's his accumulated unused sick leave for which
12 payment is not received, as follows:
13 a. Sick leave days shall be limited to those
14 accumulated under a sick leave plan established by a
15 participating municipality or participating
16 instrumentality which is available to all employees or a
17 class of employees.
18 b. Only sick leave days accumulated with a
19 participating municipality or participating
20 instrumentality with which the employee was in service
21 within 60 days of the effective date of his retirement
22 annuity shall be credited; If the employee was in service
23 with more than one employer during this period only the
24 sick leave days with the employer with which the employee
25 has the greatest number of unpaid sick leave days shall
26 be considered.
27 c. The creditable service granted shall be
28 considered solely for the purpose of computing the amount
29 of the retirement annuity and shall not be used to
30 establish any minimum service period required by any
31 provision of the Illinois Pension Code, the effective
32 date of the retirement annuity, or the final rate of
33 earnings.
34 d. The creditable service shall be at the rate of
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1 1/20 of a month for each full sick day, provided that no
2 more than 12 months may be credited under this
3 subdivision 8.
4 e. Employee contributions shall not be required for
5 creditable service under this subdivision 8.
6 f. Each participating municipality and
7 participating instrumentality with which an employee has
8 service within 60 days of the effective date of his
9 retirement annuity shall certify to the board the number
10 of accumulated unpaid sick leave days credited to the
11 employee at the time of termination of service.
12 9. For service transferred from another system: Credits
13 and creditable service shall be granted for service under
14 Article 3, 4, 5, 14 or 16 of this Act, to any active member
15 of this Fund, and to any inactive member who has been a
16 county sheriff, upon transfer of such credits pursuant to
17 Section 3-110.3, 4-108.3, 5-235, 14-105.6 or 16-131.4, and
18 payment by the member of the amount by which (1) the employer
19 and employee contributions that would have been required if
20 he had participated in this Fund as a sheriff's law
21 enforcement employee during the period for which credit is
22 being transferred, plus interest thereon at the effective
23 rate for each year, compounded annually, from the date of
24 termination of the service for which credit is being
25 transferred to the date of payment, exceeds (2) the amount
26 actually transferred to the Fund. Such transferred service
27 shall be deemed to be service as a sheriff's law enforcement
28 employee for the purposes of Section 7-142.1.
29 (b) Creditable service - amount: 1. One month of
30 creditable service shall be allowed for each month for which
31 a participating employee made contributions as required under
32 Section 7-173, or for which creditable service is otherwise
33 granted hereunder. Not more than 1 month of service shall be
34 credited and counted for 1 calendar month, and not more than
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1 1 year of service shall be credited and counted for any
2 calendar year. A calendar month means a nominal month
3 beginning on the first day thereof, and a calendar year means
4 a year beginning January 1 and ending December 31.
5 2. A seasonal employee shall be given 12 months of
6 creditable service if he renders the number of months of
7 service normally required by the position in a 12-month
8 period and he remains in service for the entire 12-month
9 period. Otherwise a fractional year of service in the number
10 of months of service rendered shall be credited.
11 3. An intermittent employee shall be given creditable
12 service for only those months in which a contribution is made
13 under Section 7-173.
14 (c) No application for correction of credits or
15 creditable service shall be considered unless the board
16 receives an application for correction while (1) the
17 applicant is a participating employee and in active
18 employment with a participating municipality or
19 instrumentality, or (2) while the applicant is actively
20 participating in a pension fund or retirement system which is
21 a participating system under the Retirement Systems
22 Reciprocal Act. A participating employee or other applicant
23 shall not be entitled to credits or creditable service unless
24 the required employee contributions are made in a lump sum or
25 in installments made in accordance with board rule.
26 (d) Upon the granting of a retirement, surviving spouse
27 or child annuity, a death benefit or a separation benefit, on
28 account of any employee, all individual accumulated credits
29 shall thereupon terminate. Upon the withdrawal of additional
30 contributions, the credits applicable thereto shall thereupon
31 terminate.
32 (Source: P.A. 86-273; 86-1028; 87-740.)
33 (40 ILCS 5/7-145) (from Ch. 108 1/2, par. 7-145)
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1 Sec. 7-145. Reversionary annuities.
2 (a) An employee entitled to a retirement annuity may
3 elect to provide a reversionary annuity for a beneficiary if,
4 at the time such retirement annuity begins:
5 1. Under the provisions of paragraph (a) 1 of Section
6 7-142 he is entitled to an immediate annuity of at least $10
7 per month; and
8 2. His accumulated additional and optional credits are
9 sufficient to provide a reversionary annuity, of at least $10
10 per month, for the beneficiary.
11 (b) An election shall become effective only:
12 1. If a written notice thereof by the employee is
13 received by the board together with his application for
14 retirement annuity; and
15 2. If the amount of the beneficiary's reversionary
16 annuity specified in the notice is not less than $10 nor more
17 than that which can be provided, at the time, by the
18 accumulation of additional and optional credits.
19 (c) The amount of the reversionary annuity shall be that
20 specified in the notice of election.
21 (d) Reversionary annuity shall begin the first day of
22 the month following the month in which the last payment of
23 the employee annuity is payable because of death, provided
24 the beneficiary is alive at such time. If the beneficiary
25 does not survive the annuitant, no reversionary annuity shall
26 be payable, but only the death benefit as provided in
27 Sections 7-163 and 7-164.
28 (e) No reversionary annuity shall be awarded to be
29 effective on or after January 1, 1986, but reversionary
30 annuities granted prior to that date shall continue to be
31 paid.
32 (Source: P.A. 84-812.)
33 (40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
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1 Sec. 7-171. Finance; taxes.
2 (a) Each municipality other than a school district shall
3 appropriate an amount sufficient to provide for the current
4 municipality contributions required by Section 7-172 of this
5 Article, for the fiscal year for which the appropriation is
6 made and all amounts due for municipal contributions for
7 previous years. Those municipalities which have been assessed
8 an annual amount to amortize its unfunded obligation, as
9 provided in subparagraph 5 of paragraph (a) of Section 7-172
10 of this Article, shall include in the appropriation an amount
11 sufficient to pay the amount assessed. The appropriation
12 shall be based upon an estimate of assets available for
13 municipality contributions and liabilities therefor for the
14 fiscal year for which appropriations are to be made,
15 including funds available from levies for this purpose in
16 prior years.
17 (b) For the purpose of providing monies for municipality
18 contributions, beginning for the year in which a municipality
19 is included in this fund:
20 (1) A municipality other than a school district may
21 levy a tax which shall not exceed the amount appropriated
22 for municipality contributions.
23 (2) A school district may levy a tax in an amount
24 reasonably calculated at the time of the levy to provide
25 for the municipality contributions required under Section
26 7-172 of this Article for the fiscal years for which
27 revenues from the levy will be received and all amounts
28 due for municipal contributions for previous years. Any
29 levy adopted before the effective date of this amendatory
30 Act of 1995 by a school district shall be considered
31 valid and authorized to the extent that the amount was
32 reasonably calculated at the time of the levy to provide
33 for the municipality contributions required under Section
34 7-172 for the fiscal years for which revenues from the
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1 levy will be received and all amounts due for municipal
2 contributions for previous years. In no event shall a
3 budget adopted by a school district limit a levy of that
4 school district adopted under this Section.
5 (c) Any county which is served by a regional office of
6 education that serves 2 a part of an educational service
7 region comprised of two or more counties formed under Section
8 3A of the School Code may include in its appropriation an
9 amount sufficient to provide its proportionate share of the
10 municipality contributions for that regional office of
11 education of the region. The tax levy authorized by this
12 Section may include an amount necessary to provide monies for
13 this contribution.
14 (d) Any county that is a part of a multiple-county
15 health department or consolidated health department which is
16 formed under "An Act in relation to the establishment and
17 maintenance of county and multiple-county public health
18 departments", approved July 9, 1943, as amended, and which is
19 a participating instrumentality may include in the county's
20 appropriation an amount sufficient to provide its
21 proportionate share of municipality contributions of the
22 department. The tax levy authorized by this Section may
23 include the amount necessary to provide monies for this
24 contribution.
25 (e) Such tax shall be levied and collected in like
26 manner, with the general taxes of the municipality and shall
27 be in addition to all other taxes which the municipality is
28 now or may hereafter be authorized to levy upon all taxable
29 property therein, and shall be exclusive of and in addition
30 to the amount of tax levied for general purposes under
31 Section 8-3-1 of the "Illinois Municipal Code", approved May
32 29, 1961, as amended, or under any other law or laws which
33 may limit the amount of tax which the municipality may levy
34 for general purposes. The tax may be levied by the governing
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1 body of the municipality without being authorized as being
2 additional to all other taxes by a vote of the people of the
3 municipality.
4 (f) The county clerk of the county in which any such
5 municipality is located, in reducing tax levies shall not
6 consider any such tax as a part of the general tax levy for
7 municipality purposes, and shall not include the same in the
8 limitation of any other tax rate which may be extended.
9 (g) The amount of the tax to be levied in any year
10 shall, within the limits herein prescribed, be determined by
11 the governing body of the respective municipality.
12 (h) The revenue derived from any such tax levy shall be
13 used only for the purposes specified in this Article, and, as
14 collected, shall be paid to the treasurer of the municipality
15 levying the tax. Monies received by a county treasurer for
16 use in making contributions to a regional office of education
17 consolidated educational service region for its municipality
18 contributions shall be held by him for that purpose and paid
19 to the regional office of education region in the same manner
20 as other monies appropriated for the expense of the regional
21 office region.
22 (Source: P.A. 89-329, eff. 8-17-95.)
23 (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
24 Sec. 7-172. Contributions by participating
25 municipalities and participating instrumentalities.
26 (a) Each participating municipality and each
27 participating instrumentality shall make payment to the fund
28 as follows:
29 1. municipality contributions in an amount
30 determined by applying the municipality contribution rate
31 to each payment of earnings paid to each of its
32 participating employees;
33 2. an amount equal to the employee contributions
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1 provided by paragraphs (a) and (b) of Section 7-173,
2 whether or not the employee contributions are withheld as
3 permitted by that Section;
4 3. all accounts receivable, together with interest
5 charged thereon, as provided in Section 7-209;
6 4. if it has no participating employees with
7 current earnings, an amount payable which, over a period
8 of 20 years beginning with the year following an award of
9 benefit, will amortize, at the effective rate for that
10 year, any negative balance in its municipality reserve
11 resulting from the award. This amount when established
12 will be payable as a separate contribution whether or not
13 it later has participating employees.
14 (b) A separate municipality contribution rate shall be
15 determined for each calendar year for all participating
16 municipalities together with all instrumentalities thereof.
17 The municipality contribution rate shall be determined for
18 participating instrumentalities as if they were participating
19 municipalities. The municipality contribution rate shall be
20 the sum of the following percentages:
21 1. The percentage of earnings of all the
22 participating employees of all participating
23 municipalities and participating instrumentalities which,
24 if paid over the entire period of their service, will be
25 sufficient when combined with all employee contributions
26 available for the payment of benefits, to provide all
27 annuities for participating employees, and the $3,000
28 death benefit payable under Sections 7-158 and 7-164,
29 such percentage to be known as the normal cost rate.
30 2. The percentage of earnings of the participating
31 employees of each participating municipality and
32 participating instrumentalities necessary to adjust for
33 the difference between the present value of all benefits,
34 excluding temporary and total and permanent disability
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1 and death benefits, to be provided for its participating
2 employees and the sum of its accumulated municipality
3 contributions and the accumulated employee contributions
4 and the present value of expected future employee and
5 municipality contributions pursuant to subparagraph 1 of
6 this paragraph (b). This adjustment shall be spread over
7 the remainder of the period of 40 years from the first of
8 the year following the date of determination.
9 3. The percentage of earnings of the participating
10 employees of all municipalities and participating
11 instrumentalities necessary to provide the present value
12 of all temporary and total and permanent disability
13 benefits granted during the most recent year for which
14 information is available.
15 4. The percentage of earnings of the participating
16 employees of all participating municipalities and
17 participating instrumentalities necessary to provide the
18 present value of the net single sum death benefits
19 expected to become payable from the reserve established
20 under Section 7-206 during the year for which this rate
21 is fixed.
22 5. The percentage of earnings necessary to meet any
23 deficiency arising in the Terminated Municipality
24 Reserve.
25 (c) A separate municipality contribution rate shall be
26 computed for each participating municipality or participating
27 instrumentality for its sheriff's law enforcement employees.
28 A separate municipality contribution rate shall be
29 computed for the sheriff's law enforcement employees of each
30 forest preserve district that elects to have such employees.
31 For the period from January 1, 1986 to December 31, 1986,
32 such rate shall be the forest preserve district's regular
33 rate plus 2%.
34 In the event that the Board determines that there is an
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1 actuarial deficiency in the account of any municipality with
2 respect to a person who has elected to participate in the
3 Fund under Section 3-109.1 of this Code, the Board may adjust
4 the municipality's contribution rate so as to make up that
5 deficiency over such reasonable period of time as the Board
6 may determine.
7 (d) The Board may establish a separate municipality
8 contribution rate for all employees who are program
9 participants employed under the Federal Comprehensive
10 Employment Training Act by all of the participating
11 municipalities and instrumentalities. The Board may also
12 provide that, in lieu of a separate municipality rate for
13 these employees, a portion of the municipality contributions
14 for such program participants shall be refunded or an extra
15 charge assessed so that the amount of municipality
16 contributions retained or received by the fund for all CETA
17 program participants shall be an amount equal to that which
18 would be provided by the separate municipality contribution
19 rate for all such program participants. Refunds shall be
20 made to prime sponsors of programs upon submission of a claim
21 therefor and extra charges shall be assessed to participating
22 municipalities and instrumentalities. In establishing the
23 municipality contribution rate as provided in paragraph (b)
24 of this Section, the use of a separate municipality
25 contribution rate for program participants or the refund of a
26 portion of the municipality contributions, as the case may
27 be, may be considered.
28 (e) Computations of municipality contribution rates for
29 the following calendar year shall be made prior to the
30 beginning of each year, from the information available at the
31 time the computations are made, and on the assumption that
32 the employees in each participating municipality or
33 participating instrumentality at such time will continue in
34 service until the end of such calendar year at their
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1 respective rates of earnings at such time.
2 (f) Any municipality which is the recipient of State
3 allocations representing that municipality's contributions
4 for retirement annuity purposes on behalf of its employees as
5 provided in Section 12-21.16 of the Illinois Public Aid Code
6 shall pay the allocations so received to the Board for such
7 purpose. Estimates of State allocations to be received
8 during any taxable year shall be considered in the
9 determination of the municipality's tax rate for that year
10 under Section 7-171. If a special tax is levied under
11 Section 7-171, none of the proceeds may be used to reimburse
12 the municipality for the amount of State allocations received
13 and paid to the Board. Any multiple-county or consolidated
14 health department which receives contributions from a county
15 under Section 11.2 of "An Act in relation to establishment
16 and maintenance of county and multiple-county health
17 departments", approved July 9, 1943, as amended, or
18 distributions under Section 3 of the Department of Public
19 Health Act, shall use these only for municipality
20 contributions by the health department.
21 (g) Municipality contributions for the several purposes
22 specified shall, for township treasurers and employees in the
23 offices of the township treasurers who meet the qualifying
24 conditions for coverage hereunder, be allocated among the
25 several school districts and parts of school districts
26 serviced by such treasurers and employees in the proportion
27 which the amount of school funds of each district or part of
28 a district handled by the treasurer bears to the total amount
29 of all school funds handled by the treasurer.
30 From the funds subject to allocation among districts and
31 parts of districts pursuant to the School Code, the trustees
32 shall withhold the proportionate share of the liability for
33 municipality contributions imposed upon such districts by
34 this Section, in respect to such township treasurers and
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1 employees and remit the same to the Board.
2 The municipality contribution rate for an educational
3 service center shall initially be the same rate for each year
4 as the regional office of education consolidated educational
5 service region or school district which serves as its
6 administrative agent. When actuarial data become available,
7 a separate rate shall be established as provided in
8 subparagraph (i) of this Section.
9 The municipality contribution rate for a public agency,
10 other than a vocational education cooperative, formed under
11 the Intergovernmental Cooperation Act shall initially be the
12 average rate for the municipalities which are parties to the
13 intergovernmental agreement. When actuarial data become
14 available, a separate rate shall be established as provided
15 in subparagraph (i) of this Section.
16 (h) Each participating municipality and participating
17 instrumentality shall make the contributions in the amounts
18 provided in this Section in the manner prescribed from time
19 to time by the Board and all such contributions shall be
20 obligations of the respective participating municipalities
21 and participating instrumentalities to this fund. The
22 failure to deduct any employee contributions shall not
23 relieve the participating municipality or participating
24 instrumentality of its obligation to this fund. Delinquent
25 payments of contributions due under this Section may, with
26 interest, be recovered by civil action against the
27 participating municipalities or participating
28 instrumentalities. Municipality contributions, other than
29 the amount necessary for employee contributions and Social
30 Security contributions, for periods of service by employees
31 from whose earnings no deductions were made for employee
32 contributions to the fund, may be charged to the municipality
33 reserve for the municipality or participating
34 instrumentality.
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1 (i) Contributions by participating instrumentalities
2 shall be determined as provided herein except that the
3 percentage derived under subparagraph 2 of paragraph (b) of
4 this Section, and the amount payable under subparagraph 5 of
5 paragraph (a) of this Section, shall be based on an
6 amortization period of 10 years.
7 (Source: P.A. 86-273; 87-850.)
8 (40 ILCS 5/7-199.3 new)
9 Sec. 7-199.3. To establish and administer deferred
10 compensation and tax-deferred annuity programs for units of
11 local government.
12 The Board may establish and administer deferred
13 compensation, tax deferred annuity, and similar tax-savings
14 programs for employees of units of local government, which
15 shall be known as the "IMRF-Plus" program. The program shall
16 provide for the Board to review proposed investment offerings
17 and shall require that only investments determined to be
18 acceptable by the Board may be used for investing
19 compensation contributed to the program.
20 The program shall include appropriate provisions
21 pertaining to its day to day operation, including methods of
22 electing to contribute income, methods of changing the amount
23 of income contributed, methods of selecting from among
24 investment options available under the program, and any other
25 provisions that the Board may deem appropriate.
26 The program shall provide for the preparation of
27 pamphlets describing the program and outlining the options
28 and opportunities available to local government employees
29 under the program. These pamphlets shall be distributed from
30 time to time to all eligible employees.
31 The program established under this Section shall not be
32 implemented or amended until the Board is satisfied that
33 compensation contributed under the program is not subject to
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1 income tax for the year in which it is earned and that the
2 taxation of such compensation will be deferred until the time
3 of its distribution to the employee.
4 The program shall also provide for the recovery of the
5 expenses of its administration by charging those expenses
6 against the earnings from investments, by charging fees
7 equitably prorated among the participating local government
8 employees, or by some other appropriate and equitable method
9 determined by the Board. Different methods for recovery of
10 administrative expenses may be provided in relation to
11 different types of investment programs, and the Board may
12 provide for the allocation of administration expenses among
13 varying types of programs for this purpose.
14 The Board shall review and oversee the administration of
15 the program.
16 This Section does not limit the power or authority of any
17 unit of local government, school district, or institution
18 supported in whole or in part by public funds to establish
19 and administer any other deferred compensation plans or
20 tax-deferred annuity programs that may be authorized by law.
21 Section 25. The Illinois Pension Code is amended by
22 changing Section 17-116.1 as follows:
23 (40 ILCS 5/17-116.1) (from Ch. 108 1/2, par. 17-116.1)
24 Sec. 17-116.1. Early retirement without discount. A
25 member retiring after June 1, 1980 and before June 30, 2005
26 1995 and within 6 months of the last day of teaching for
27 which retirement contributions were required, may elect at
28 the time of application to make a one time employee
29 contribution to the system and thereby avoid the early
30 retirement reduction in allowance specified in paragraph (4)
31 of Section 17-116 of this Article. The exercise of the
32 election shall obligate the employer to also make a one time
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1 non-refundable contribution to the fund.
2 The one-time employee contribution shall be equal to 7%
3 of the retiring member's highest full-time annual salary rate
4 used in the determination of the average salary rate for
5 retirement pension, or if not full-time then the full-time
6 equivalent, multiplied by (1) the number of years the teacher
7 is under age 60, or (2) the number of years the employee's
8 creditable service is less than 35 years, whichever is less.
9 The employer contribution shall be 20% of such salary
10 multiplied by such number of years.
11 Upon receipt of the application and election, the board
12 shall determine the one time employee and employer
13 contributions. The provisions of this Section shall not be
14 applicable until all the above outlined contributions have
15 been received by the fund; however, the date such
16 contributions are received shall not be considered in
17 determining the effective date of retirement.
18 The number of employees who may retire under this Section
19 in any year may be limited at the option of the employer to a
20 specified percentage of those eligible, not lower than 30%,
21 with the right to participate to be allocated among those
22 applying on the basis of seniority in the service of the
23 employer.
24 Notwithstanding Section 17-157, the extension of the
25 deadline for early retirement without discount under this
26 Section effected by this amendatory Act of 1997 also applies
27 to persons who withdrew from service on or after June 30,
28 1995 and before the effective date of this amendatory Act of
29 1997. Any such person who qualifies for early retirement
30 without discount under this Section, applies to the Fund
31 within 90 days after the effective date of this amendatory
32 Act of 1997, and pays the required employee contribution may
33 have his or her retirement pension recalculated in accordance
34 with this Section; the resulting increase shall be effective
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1 retroactively to the starting date of the retirement pension.
2 (Source: P.A. 86-272.)
3 Section 30. The State Mandates Act is amended by adding
4 Section 8.21 as follows:
5 (30 ILCS 805/8.21 new)
6 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
7 and 8 of this Act, no reimbursement by the State is required
8 for the implementation of any mandate created by this
9 amendatory Act of 1997.
10 Section 35. The Illinois Pension Code is amended by
11 changing Section 14-104 as follows:
12 (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
13 Sec. 14-104. Service for which contributions permitted.
14 Contributions provided for in this Section shall cover the
15 period of service granted, and be based upon employee's
16 compensation and contribution rate in effect on the date he
17 last became a member of the System; provided that for all
18 employment prior to January 1, 1969 the contribution rate
19 shall be that in effect for a noncovered employee on the date
20 he last became a member of the System. Contributions
21 permitted under this Section shall include regular interest
22 from the date an employee last became a member of the System
23 to date of payment.
24 These contributions must be paid in full before
25 retirement either in a lump sum or in installment payments in
26 accordance with such rules as may be adopted by the board.
27 (a) Any member may make contributions as required in
28 this Section for any period of service, subsequent to the
29 date of establishment, but prior to the date of membership.
30 (b) Any employee who had been previously excluded from
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1 membership because of age at entry and subsequently became
2 eligible may elect to make contributions as required in this
3 Section for the period of service during which he was
4 ineligible.
5 (c) An employee of the Department of Insurance who,
6 after January 1, 1944 but prior to becoming eligible for
7 membership, received salary from funds of insurance companies
8 in the process of rehabilitation, liquidation, conservation
9 or dissolution, may elect to make contributions as required
10 in this Section for such service.
11 (d) Any employee who rendered service in a State office
12 to which he was elected, or rendered service in the elective
13 office of Clerk of the Appellate Court prior to the date he
14 became a member, may make contributions for such service as
15 required in this Section. Any member who served by
16 appointment of the Governor under the Civil Administrative
17 Code of Illinois and did not participate in this System may
18 make contributions as required in this Section for such
19 service.
20 (e) Any person employed by the United States government
21 or any instrumentality or agency thereof from January 1, 1942
22 through November 15, 1946 as the result of a transfer from
23 State service by executive order of the President of the
24 United States shall be entitled to prior service credit
25 covering the period from January 1, 1942 through December 31,
26 1943 as provided for in this Article and to membership
27 service credit for the period from January 1, 1944 through
28 November 15, 1946 by making the contributions required in
29 this Section. A person so employed on January 1, 1944 but
30 whose employment began after January 1, 1942 may qualify for
31 prior service and membership service credit under the same
32 conditions.
33 (f) An employee of the Department of Labor of the State
34 of Illinois who performed services for and under the
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1 supervision of that Department prior to January 1, 1944 but
2 who was compensated for those services directly by federal
3 funds and not by a warrant of the Auditor of Public Accounts
4 paid by the State Treasurer may establish credit for such
5 employment by making the contributions required in this
6 Section. An employee of the Department of Agriculture of the
7 State of Illinois, who performed services for and under the
8 supervision of that Department prior to June 1, 1963, but was
9 compensated for those services directly by federal funds and
10 not paid by a warrant of the Auditor of Public Accounts paid
11 by the State Treasurer, and who did not contribute to any
12 other public employee retirement system for such service, may
13 establish credit for such employment by making the
14 contributions required in this Section.
15 (g) Any employee who executed a waiver of membership
16 within 60 days prior to January 1, 1944 may, at any time
17 while in the service of a department, file with the board a
18 rescission of such waiver. Upon making the contributions
19 required by this Section, the member shall be granted the
20 creditable service that would have been received if the
21 waiver had not been executed.
22 (h) Until May 1, 1990, an employee who was employed on a
23 full-time basis by a regional planning commission for at
24 least 5 continuous years may establish creditable service for
25 such employment by making the contributions required under
26 this Section, provided that any credits earned by the
27 employee in the commission's retirement plan have been
28 terminated.
29 (i) Any person who rendered full time contractual
30 services to the General Assembly as a member of a legislative
31 staff may establish service credit for up to 8 years of such
32 services by making the contributions required under this
33 Section, provided that application therefor is made not later
34 than July 1, 1991.
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1 (j) By paying the contributions otherwise required under
2 this Section, plus an amount determined by the Board to be
3 equal to the employer's normal cost of the benefit plus
4 interest, an employee may establish service credit for a
5 period of up to 2 years spent in active military service for
6 which he does not qualify for credit under Section 14-105,
7 provided that (1) he was not dishonorably discharged from
8 such military service, and (2) the amount of service credit
9 established by a member under this subsection (j), when added
10 to the amount of military service credit granted to the
11 member under subsection (b) of Section 14-105, shall not
12 exceed 5 years.
13 (k) An employee who was employed on a full-time basis by
14 the Illinois State's Attorneys Association Statewide
15 Appellate Assistance Service LEAA-ILEC grant project prior to
16 the time that project became the State's Attorneys Appellate
17 Service Commission, now the Office of the State's Attorneys
18 Appellate Prosecutor, an agency of State government, may
19 establish creditable service for not more than 60 months
20 service for such employment by making contributions required
21 under this Section.
22 (l) Any person who rendered contractual services to a
23 member of the General Assembly as a worker in the member's
24 district office may establish creditable service for up to 3
25 years of those contractual services by making the
26 contributions required under this Section. The System shall
27 determine a full-time salary equivalent for the purpose of
28 calculating the required contribution. To establish credit
29 under this subsection, the applicant must apply to the System
30 by March 1, 1998.
31 (Source: P.A. 86-273; 86-1488; 87-794; 87-895; 87-1265.)
32 Section 40. The Illinois Pension Code is amended by
33 adding Section 18-112.6 as follows:
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1 (40 ILCS 5/18-112.6 new)
2 Sec. 18-112.6. Service credit for member of educational
3 board. Until July 1, 1998, an active participant in this
4 System who has at least 6 years of service as a judge may
5 establish up to 2 years of service credit in this System for
6 a period during which the participant held elective office as
7 a member of a board of education in this State or a member of
8 the board of trustees of a community college district in this
9 State, by applying to the Board in writing and paying to the
10 System an amount equal to (1) employee contributions based on
11 the rate in effect for a judge on the date of becoming a
12 participant in this System and the salary received by the
13 judge on that date, plus (2) the employer's share of the
14 normal cost of the benefits being established, plus (3)
15 interest thereon at the prescribed rate, compounded annually,
16 from the date of membership to the date of payment. However,
17 credit may not be established under this Section for any
18 period for which the judge has received credit under any
19 other pension fund or retirement system subject to this Code,
20 unless that credit has been terminated.
21 Section 45. The State Mandates Act is amended by adding
22 Section 8.21 as follows:
23 (30 ILCS 805/8.21 new)
24 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
25 and 8 of this Act, no reimbursement by the State is required
26 for the implementation of any mandate created by this
27 amendatory Act of 1997.
28 Section 50. The Illinois Pension Code is amended by
29 changing Section 7-139 as follows:
30 (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
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1 Sec. 7-139. Credits and creditable service to employees.
2 (a) Each participating employee shall be granted credits
3 and creditable service, for purposes of determining the
4 amount of any annuity or benefit to which he or a beneficiary
5 is entitled, as follows:
6 1. For prior service: Each participating employee who is
7 an employee of a participating municipality or participating
8 instrumentality on the effective date shall be granted
9 creditable service, but no credits under paragraph 2 of this
10 subsection (a), for his entire period of prior service.
11 Any person who has withdrawn from the service of a
12 participating municipality or participating instrumentality
13 prior to the effective date, who reenters service of the same
14 municipality or participating instrumentality after the
15 effective date and becomes a participating employee is
16 entitled to creditable service for prior service if he
17 renders 2 years of service as a participating employee after
18 the effective date provided application for such service is
19 made while in a participating status.
20 2. For current service, each participating employee
21 shall be credited with:
22 a. Additional credits of amounts equal to each
23 payment of additional contributions received from him
24 under Section 7-173, as of the date the corresponding
25 payment of earnings is payable to him.
26 b. Normal credits of amounts equal to each payment
27 of normal contributions received from him, as of the date
28 the corresponding payment of earnings is payable to him,
29 and normal contributions made for the purpose of
30 establishing out-of-state service credits as permitted
31 under the conditions set forth in paragraph 6 of this
32 subsection (a).
33 c. Municipality credits in an amount equal to 1.4
34 times the normal credits, except those established by
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1 out-of-state service credits, as of the date of
2 computation of any benefit if these credits would
3 increase the benefit.
4 d. Survivor credits equal to each payment of
5 survivor contributions received from the participating
6 employee as of the date the corresponding payment of
7 earnings is payable, and survivor contributions made for
8 the purpose of establishing out-of-state service credits.
9 3. For periods of temporary and total and permanent
10 disability benefits, each employee receiving disability
11 benefits shall be granted creditable service for the period
12 during which disability benefits are payable. Normal and
13 survivor credits, based upon the rate of earnings applied for
14 disability benefits, shall also be granted if such credits
15 would result in a higher benefit to any such employee or his
16 beneficiary.
17 4. For authorized leave of absence without pay: A
18 participating employee shall be granted credits and
19 creditable service for periods of authorized leave of absence
20 without pay under the following conditions:
21 a. An application for credits and creditable
22 service shall be submitted to the board while the
23 employee is in a status of active employment, and within
24 2 years after termination of the leave of absence period
25 for which credits and creditable service are sought.
26 b. Not more than 12 complete months of creditable
27 service for authorized leave of absence without pay shall
28 be counted for purposes of determining any benefits
29 payable under this Article.
30 c. Credits and creditable service shall be granted
31 for leave of absence only if such leave is approved by
32 the governing body of the municipality, including
33 approval of the estimated cost thereof to the
34 municipality as determined by the fund, and employee
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1 contributions, plus interest at the effective rate
2 applicable for each year from the end of the period of
3 leave to date of payment, have been paid to the fund in
4 accordance with Section 7-173. The contributions shall be
5 computed upon the assumption earnings continued during
6 the period of leave at the rate in effect when the leave
7 began.
8 d. Benefits under the provisions of Sections 7-141,
9 7-146, 7-150 and 7-163 shall become payable to employees
10 on authorized leave of absence, or their designated
11 beneficiary, only if such leave of absence is creditable
12 hereunder, and if the employee has at least one year of
13 creditable service other than the service granted for
14 leave of absence. Any employee contributions due may be
15 deducted from any benefits payable.
16 e. No credits or creditable service shall be
17 allowed for leave of absence without pay during any
18 period of prior service.
19 5. For military service: The governing body of a
20 municipality or participating instrumentality may elect to
21 allow creditable service to participating employees who leave
22 their employment to serve in the armed forces of the United
23 States for all periods of such service, provided such person
24 returns to active employment within 90 days after completion
25 of full time active duty but no creditable service shall be
26 allowed such person for any period that can be used in the
27 computation of a pension or any other pay or benefit, other
28 than pay for active duty, for service in any branch of the
29 armed forces of the United States. If necessary to the
30 computation of any benefit, the board shall establish
31 municipality credits for participating employees under this
32 paragraph on the assumption that the employee received
33 earnings at the rate received at the time he left the
34 employment to enter the armed forces. A participating
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1 employee in the armed forces shall not be considered an
2 employee during such period of service and no additional
3 death and no disability benefits are payable for death or
4 disability during such period.
5 Any participating employee who left his employment with a
6 municipality or participating instrumentality to serve in the
7 armed forces of the United States and who again became a
8 participating employee within 90 days after completion of
9 full time active duty by entering the service of a different
10 municipality or participating instrumentality, which has
11 elected to allow creditable service for periods of military
12 service under the preceding paragraph, shall also be allowed
13 creditable service for his period of military service on the
14 same terms that would apply if he had been employed, before
15 entering military service, by the municipality or
16 instrumentality which employed him after he left the military
17 service and the employer costs arising in relation to such
18 grant of creditable service shall be charged to and paid by
19 that municipality or instrumentality.
20 Notwithstanding the foregoing, any participating employee
21 shall be entitled to creditable service as required by any
22 federal law relating to re-employment rights of persons who
23 served in the United States Armed Services. Such creditable
24 service shall be granted upon payment by the member of an
25 amount equal to the employee contributions which would have
26 been required had the employee continued in service at the
27 same rate of earnings during the military leave period, plus
28 interest at the effective rate.
29 6. For out-of-state service: Creditable service shall be
30 granted for service rendered to an out-of-state local
31 governmental body under the following conditions: The
32 employee had participated and has irrevocably forfeited all
33 rights to benefits in the out-of-state public employees
34 pension system; the governing body of his participating
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1 municipality or instrumentality authorizes the employee to
2 establish such service; the employee has 2 years current
3 service with this municipality or participating
4 instrumentality; the employee makes a payment of
5 contributions, which shall be computed at 8% (normal) plus 2%
6 (survivor) times length of service purchased times the
7 average rate of earnings for the first 2 years of service
8 with the municipality or participating instrumentality whose
9 governing body authorizes the service established plus
10 interest at the effective rate on the date such credits are
11 established, payable from the date the employee completes the
12 required 2 years of current service to date of payment. In
13 no case shall more than 120 months of creditable service be
14 granted under this provision.
15 7. For retroactive service: Any employee who could have
16 but did not elect to become a participating employee, or who
17 should have been a participant in the Municipal Public
18 Utilities Annuity and Benefit Fund before that fund was
19 superseded, may receive creditable service for the period of
20 service not to exceed 50 months; however, a current or former
21 county board member may establish credit under this paragraph
22 7 for more than 50 months of service as a member of the
23 county board if the excess over 50 months is approved by
24 resolution of the affected county board filed with the Fund
25 before January 1, 1999.
26 Any employee who is a participating employee on or after
27 September 24, 1981 and who was excluded from participation by
28 the age restrictions removed by Public Act 82-596 may receive
29 creditable service for the period, on or after January 1,
30 1979, excluded by the age restriction and, in addition, if
31 the governing body of the participating municipality or
32 participating instrumentality elects to allow creditable
33 service for all employees excluded by the age restriction
34 prior to January 1, 1979, for service during the period prior
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1 to that date excluded by the age restriction. Any employee
2 who was excluded from participation by the age restriction
3 removed by Public Act 82-596 and who is not a participating
4 employee on or after September 24, 1981 may receive
5 creditable service for service after January 1, 1979.
6 Creditable service under this paragraph shall be granted
7 upon payment of the employee contributions which would have
8 been required had he participated, with interest at the
9 effective rate for each year from the end of the period of
10 service established to date of payment.
11 8. For accumulated unused sick leave: A participating
12 employee who is applying for a retirement annuity shall be
13 entitled to creditable service for that portion of his
14 accumulated unused sick leave for which payment is not
15 received, as follows:
16 a. Sick leave days shall be limited to those
17 accumulated under a sick leave plan established by a
18 participating municipality or participating
19 instrumentality which is available to all employees or a
20 class of employees.
21 b. Only sick leave days accumulated with a
22 participating municipality or participating
23 instrumentality with which the employee was in service
24 within 60 days of the effective date of his retirement
25 annuity shall be credited; if the employee was in service
26 with more than one employer during this period only the
27 sick leave days with the employer with which the employee
28 has the greatest number of unpaid sick leave days shall
29 be considered.
30 c. The creditable service granted shall be
31 considered solely for the purpose of computing the amount
32 of the retirement annuity and shall not be used to
33 establish any minimum service period required by any
34 provision of the Illinois Pension Code, the effective
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1 date of the retirement annuity, or the final rate of
2 earnings.
3 d. The creditable service shall be at the rate of
4 1/20 of a month for each full sick day, provided that no
5 more than 12 months may be credited under this
6 subdivision 8.
7 e. Employee contributions shall not be required for
8 creditable service under this subdivision 8.
9 f. Each participating municipality and
10 participating instrumentality with which an employee has
11 service within 60 days of the effective date of his
12 retirement annuity shall certify to the board the number
13 of accumulated unpaid sick leave days credited to the
14 employee at the time of termination of service.
15 9. For service transferred from another system: Credits
16 and creditable service shall be granted for service under
17 Article 3, 4, 5, 14 or 16 of this Act, to any active member
18 of this Fund, and to any inactive member who has been a
19 county sheriff, upon transfer of such credits pursuant to
20 Section 3-110.3, 4-108.3, 5-235, 14-105.6 or 16-131.4, and
21 payment by the member of the amount by which (1) the employer
22 and employee contributions that would have been required if
23 he had participated in this Fund as a sheriff's law
24 enforcement employee during the period for which credit is
25 being transferred, plus interest thereon at the effective
26 rate for each year, compounded annually, from the date of
27 termination of the service for which credit is being
28 transferred to the date of payment, exceeds (2) the amount
29 actually transferred to the Fund. Such transferred service
30 shall be deemed to be service as a sheriff's law enforcement
31 employee for the purposes of Section 7-142.1.
32 (b) Creditable service - amount: 1. One month of
33 creditable service shall be allowed for each month for which
34 a participating employee made contributions as required under
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1 Section 7-173, or for which creditable service is otherwise
2 granted hereunder. Not more than 1 month of service shall be
3 credited and counted for 1 calendar month, and not more than
4 1 year of service shall be credited and counted for any
5 calendar year. A calendar month means a nominal month
6 beginning on the first day thereof, and a calendar year means
7 a year beginning January 1 and ending December 31.
8 2. A seasonal employee shall be given 12 months of
9 creditable service if he renders the number of months of
10 service normally required by the position in a 12-month
11 period and he remains in service for the entire 12-month
12 period. Otherwise a fractional year of service in the number
13 of months of service rendered shall be credited.
14 3. An intermittent employee shall be given creditable
15 service for only those months in which a contribution is made
16 under Section 7-173.
17 (c) No application for correction of credits or
18 creditable service shall be considered unless the board
19 receives an application for correction while (1) the
20 applicant is a participating employee and in active
21 employment with a participating municipality or
22 instrumentality, or (2) while the applicant is actively
23 participating in a pension fund or retirement system which is
24 a participating system under the Retirement Systems
25 Reciprocal Act. A participating employee or other applicant
26 shall not be entitled to credits or creditable service unless
27 the required employee contributions are made in a lump sum or
28 in installments made in accordance with board rule.
29 (d) Upon the granting of a retirement, surviving spouse
30 or child annuity, a death benefit or a separation benefit, on
31 account of any employee, all individual accumulated credits
32 shall thereupon terminate. Upon the withdrawal of additional
33 contributions, the credits applicable thereto shall thereupon
34 terminate.
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1 (Source: P.A. 86-273; 86-1028; 87-740.)
2 Section 55. The State Employees Group Insurance Act of
3 1971 is amended by changing Sections 3 and 6.6 as follows:
4 (5 ILCS 375/3) (from Ch. 127, par. 523)
5 (Text of Section before amendment by P.A. 89-507)
6 Sec. 3. Definitions. Unless the context otherwise
7 requires, the following words and phrases as used in this Act
8 shall have the following meanings. The Department may define
9 these and other words and phrases separately for the purpose
10 of implementing specific programs providing benefits under
11 this Act.
12 (a) "Administrative service organization" means any
13 person, firm or corporation experienced in the handling of
14 claims which is fully qualified, financially sound and
15 capable of meeting the service requirements of a contract of
16 administration executed with the Department.
17 (b) "Annuitant" means (1) an employee who retires, or
18 has retired, on or after January 1, 1966 on an immediate
19 annuity under the provisions of Articles 2, 14, 15 (including
20 an employee who has retired and is receiving a retirement
21 annuity under an optional program established under Section
22 15-158.2 and who would also be eligible for a retirement
23 annuity had that person been a participant in the State
24 University Retirement System), paragraphs (b) or (c) of
25 Section 16-106, or Article 18 of the Illinois Pension Code;
26 (2) any person who was receiving group insurance coverage
27 under this Act as of March 31, 1978 by reason of his status
28 as an annuitant, even though the annuity in relation to which
29 such coverage was provided is a proportional annuity based on
30 less than the minimum period of service required for a
31 retirement annuity in the system involved; (3) any person not
32 otherwise covered by this Act who has retired as a
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1 participating member under Article 2 of the Illinois Pension
2 Code but is ineligible for the retirement annuity under
3 Section 2-119 of the Illinois Pension Code; (4) the spouse of
4 any person who is receiving a retirement annuity under
5 Article 18 of the Illinois Pension Code and who is covered
6 under a group health insurance program sponsored by a
7 governmental employer other than the State of Illinois and
8 who has irrevocably elected to waive his or her coverage
9 under this Act and to have his or her spouse considered as
10 the "annuitant" under this Act and not as a "dependent"; or
11 (5) an employee who retires, or has retired, from a qualified
12 position, as determined according to rules promulgated by the
13 Director, under a qualified local government or a qualified
14 rehabilitation facility or a qualified domestic violence
15 shelter or service. (For definition of "retired employee",
16 see (p) post).
17 (c) "Carrier" means (1) an insurance company, a
18 corporation organized under the Limited Health Service
19 Organization Act or the Voluntary Health Services Plan Act, a
20 partnership, or other nongovernmental organization, which is
21 authorized to do group life or group health insurance
22 business in Illinois, or (2) the State of Illinois as a
23 self-insurer.
24 (d) "Compensation" means salary or wages payable on a
25 regular payroll by the State Treasurer on a warrant of the
26 State Comptroller out of any State, trust or federal fund, or
27 by the Governor of the State through a disbursing officer of
28 the State out of a trust or out of federal funds, or by any
29 Department out of State, trust, federal or other funds held
30 by the State Treasurer or the Department, to any person for
31 personal services currently performed, and ordinary or
32 accidental disability benefits under Articles 2, 14, 15
33 (including ordinary or accidental disability benefits under
34 an optional program established under Section 15-158.2),
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1 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
2 Illinois Pension Code, for disability incurred after January
3 1, 1966, or benefits payable under the Workers' Compensation
4 or Occupational Diseases Act or benefits payable under a sick
5 pay plan established in accordance with Section 36 of the
6 State Finance Act. "Compensation" also means salary or wages
7 paid to an employee of any qualified local government or
8 qualified rehabilitation facility or a qualified domestic
9 violence shelter or service.
10 (e) "Commission" means the State Employees Group
11 Insurance Advisory Commission authorized by this Act.
12 Commencing July 1, 1984, "Commission" as used in this Act
13 means the Illinois Economic and Fiscal Commission as
14 established by the Legislative Commission Reorganization Act
15 of 1984.
16 (f) "Contributory", when referred to as contributory
17 coverage, shall mean optional coverages or benefits elected
18 by the member toward the cost of which such member makes
19 contribution, or which are funded in whole or in part through
20 the acceptance of a reduction in earnings or the foregoing of
21 an increase in earnings by an employee, as distinguished from
22 noncontributory coverage or benefits which are paid entirely
23 by the State of Illinois without reduction of the member's
24 salary.
25 (g) "Department" means any department, institution,
26 board, commission, officer, court or any agency of the State
27 government receiving appropriations and having power to
28 certify payrolls to the Comptroller authorizing payments of
29 salary and wages against such appropriations as are made by
30 the General Assembly from any State fund, or against trust
31 funds held by the State Treasurer and includes boards of
32 trustees of the retirement systems created by Articles 2, 14,
33 15, 16 and 18 of the Illinois Pension Code. "Department"
34 also includes the Illinois Comprehensive Health Insurance
SB665 Engrossed -95- LRB9000602EGfg
1 Board and the Illinois Rural Bond Bank.
2 (h) "Dependent", when the term is used in the context of
3 the health and life plan, means a member's spouse and any
4 unmarried child (1) from birth to age 19 including an adopted
5 child, a child who lives with the member from the time of the
6 filing of a petition for adoption until entry of an order of
7 adoption, a stepchild or recognized child who lives with the
8 member in a parent-child relationship, or a child who lives
9 with the member if such member is a court appointed guardian
10 of the child, or (2) age 19 to 23 enrolled as a full-time
11 student in any accredited school, financially dependent upon
12 the member, and eligible as a dependent for Illinois State
13 income tax purposes, or (3) age 19 or over who is mentally or
14 physically handicapped as defined in the Illinois Insurance
15 Code. For the health plan only, the term "dependent" also
16 includes any person enrolled prior to the effective date of
17 this Section who is dependent upon the member to the extent
18 that the member may claim such person as a dependent for
19 Illinois State income tax deduction purposes; no other such
20 person may be enrolled.
21 (i) "Director" means the Director of the Illinois
22 Department of Central Management Services.
23 (j) "Eligibility period" means the period of time a
24 member has to elect enrollment in programs or to select
25 benefits without regard to age, sex or health.
26 (k) "Employee" means and includes each officer or
27 employee in the service of a department who (1) receives his
28 compensation for service rendered to the department on a
29 warrant issued pursuant to a payroll certified by a
30 department or on a warrant or check issued and drawn by a
31 department upon a trust, federal or other fund or on a
32 warrant issued pursuant to a payroll certified by an elected
33 or duly appointed officer of the State or who receives
34 payment of the performance of personal services on a warrant
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1 issued pursuant to a payroll certified by a Department and
2 drawn by the Comptroller upon the State Treasurer against
3 appropriations made by the General Assembly from any fund or
4 against trust funds held by the State Treasurer, and (2) is
5 employed full-time or part-time in a position normally
6 requiring actual performance of duty during not less than 1/2
7 of a normal work period, as established by the Director in
8 cooperation with each department, except that persons elected
9 by popular vote will be considered employees during the
10 entire term for which they are elected regardless of hours
11 devoted to the service of the State, and (3) except that
12 "employee" does not include any person who is not eligible by
13 reason of such person's employment to participate in one of
14 the State retirement systems under Articles 2, 14, 15 (either
15 the regular Article 15 system or an optional program
16 established under Section 15-158.2) or 18, or under paragraph
17 (b) or (c) of Section 16-106, of the Illinois Pension Code,
18 but such term does include persons who are employed during
19 the 6 month qualifying period under Article 14 of the
20 Illinois Pension Code. Such term also includes any person
21 who (1) after January 1, 1966, is receiving ordinary or
22 accidental disability benefits under Articles 2, 14, 15
23 (including ordinary or accidental disability benefits under
24 an optional program established under Section 15-158.2),
25 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
26 Illinois Pension Code, for disability incurred after January
27 1, 1966, (2) receives total permanent or total temporary
28 disability under the Workers' Compensation Act or
29 Occupational Disease Act as a result of injuries sustained or
30 illness contracted in the course of employment with the State
31 of Illinois, or (3) is not otherwise covered under this Act
32 and has retired as a participating member under Article 2 of
33 the Illinois Pension Code but is ineligible for the
34 retirement annuity under Section 2-119 of the Illinois
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1 Pension Code. However, a person who satisfies the criteria
2 of the foregoing definition of "employee" except that such
3 person is made ineligible to participate in the State
4 Universities Retirement System by clause (4) of the first
5 paragraph of Section 15-107 of the Illinois Pension Code is
6 also an "employee" for the purposes of this Act. "Employee"
7 also includes any person receiving or eligible for benefits
8 under a sick pay plan established in accordance with Section
9 36 of the State Finance Act. "Employee" also includes each
10 officer or employee in the service of a qualified local
11 government, including persons appointed as trustees of
12 sanitary districts regardless of hours devoted to the service
13 of the sanitary district, and each employee in the service of
14 a qualified rehabilitation facility and each full-time
15 employee in the service of a qualified domestic violence
16 shelter or service, as determined according to rules
17 promulgated by the Director.
18 (l) "Member" means an employee, annuitant, retired
19 employee or survivor.
20 (m) "Optional coverages or benefits" means those
21 coverages or benefits available to the member on his or her
22 voluntary election, and at his or her own expense.
23 (n) "Program" means the group life insurance, health
24 benefits and other employee benefits designed and contracted
25 for by the Director under this Act.
26 (o) "Health plan" means a self-insured health insurance
27 program offered by the State of Illinois for the purposes of
28 benefiting employees by means of providing, among others,
29 wellness programs, utilization reviews, second opinions and
30 medical fee reviews, as well as for paying for hospital and
31 medical care up to the maximum coverage provided by the plan,
32 to its members and their dependents.
33 (p) "Retired employee" means any person who would be an
34 annuitant as that term is defined herein but for the fact
SB665 Engrossed -98- LRB9000602EGfg
1 that such person retired prior to January 1, 1966. Such term
2 also includes any person formerly employed by the University
3 of Illinois in the Cooperative Extension Service who would be
4 an annuitant but for the fact that such person was made
5 ineligible to participate in the State Universities
6 Retirement System by clause (4) of the first paragraph of
7 Section 15-107 of the Illinois Pension Code.
8 (q) "Survivor" means a person receiving an annuity as a
9 survivor of an employee or of an annuitant. "Survivor" also
10 includes: (1) the surviving dependent of a person who
11 satisfies the definition of "employee" except that such
12 person is made ineligible to participate in the State
13 Universities Retirement System by clause (4) of the first
14 paragraph of Section 15-107 of the Illinois Pension Code; and
15 (2) the surviving dependent of any person formerly employed
16 by the University of Illinois in the Cooperative Extension
17 Service who would be an annuitant except for the fact that
18 such person was made ineligible to participate in the State
19 Universities Retirement System by clause (4) of the first
20 paragraph of Section 15-107 of the Illinois Pension Code.
21 (r) "Medical services" means the services provided
22 within the scope of their licenses by practitioners in all
23 categories licensed under the Medical Practice Act of 1987.
24 (s) "Unit of local government" means any county,
25 municipality, township, school district, special district or
26 other unit, designated as a unit of local government by law,
27 which exercises limited governmental powers or powers in
28 respect to limited governmental subjects, any not-for-profit
29 association with a membership that primarily includes
30 townships and township officials, that has duties that
31 include provision of research service, dissemination of
32 information, and other acts for the purpose of improving
33 township government, and that is funded wholly or partly in
34 accordance with Section 85-15 of the Township Code; any
SB665 Engrossed -99- LRB9000602EGfg
1 not-for-profit corporation or association, with a membership
2 consisting primarily of municipalities, that operates its own
3 utility system, and provides research, training,
4 dissemination of information, or other acts to promote
5 cooperation between and among municipalities that provide
6 utility services and for the advancement of the goals and
7 purposes of its membership; and the Illinois Association of
8 Park Districts. "Qualified local government" means a unit of
9 local government approved by the Director and participating
10 in a program created under subsection (i) of Section 10 of
11 this Act.
12 (t) "Qualified rehabilitation facility" means any
13 not-for-profit organization that is accredited by the
14 Commission on Accreditation of Rehabilitation Facilities or
15 certified by the Department of Mental Health and
16 Developmental Disabilities to provide services to persons
17 with disabilities and which receives funds from the State of
18 Illinois for providing those services, approved by the
19 Director and participating in a program created under
20 subsection (j) of Section 10 of this Act.
21 (u) "Qualified domestic violence shelter or service"
22 means any Illinois domestic violence shelter or service and
23 its administrative offices funded by the Illinois Department
24 of Public Aid, approved by the Director and participating in
25 a program created under subsection (k) of Section 10.
26 (v) "TRS benefit recipient" means a person who:
27 (1) is not a "member" as defined in this Section;
28 and
29 (2) is receiving a monthly benefit or retirement
30 annuity under Article 16 of the Illinois Pension Code;
31 and
32 (3) either (i) has at least 8 years of creditable
33 service under Article 16 of the Illinois Pension Code, or
34 (ii) was enrolled in the health insurance program offered
SB665 Engrossed -100- LRB9000602EGfg
1 under that Article on January 1, 1996, or (iii) is the
2 survivor of a benefit recipient who had at least 8 years
3 of creditable service under Article 16 of the Illinois
4 Pension Code or was enrolled in the health insurance
5 program offered under that Article on the effective date
6 of this amendatory Act of 1995, or (iv) is a recipient or
7 survivor of a recipient of a disability benefit under
8 Article 16 of the Illinois Pension Code.
9 (w) "TRS dependent beneficiary" means a person who:
10 (1) is not a "member" or "dependent" as defined in
11 this Section; and
12 (2) is a TRS benefit recipient's: (A) spouse, (B)
13 dependent parent who is receiving at least half of his or
14 her support from the TRS benefit recipient, or (C)
15 unmarried natural or adopted child who is (i) under age
16 19, or (ii) enrolled as a full-time student in an
17 accredited school, financially dependent upon the TRS
18 benefit recipient, eligible as a dependent for Illinois
19 State income tax purposes, and either is under age 23 24
20 or was, on January 1, 1996, participating as a dependent
21 beneficiary in the health insurance program offered under
22 Article 16 of the Illinois Pension Code, or (iii) age 19
23 or over who is mentally or physically handicapped as
24 defined in the Illinois Insurance Code.
25 (x) "Military leave with pay and benefits" refers to
26 individuals in basic training for reserves, special/advanced
27 training, annual training, emergency call up, or activation
28 by the President of the United States with approved pay and
29 benefits.
30 (y) "Military leave without pay and benefits" refers to
31 individuals who enlist for active duty in a regular component
32 of the U.S. Armed Forces or other duty not specified or
33 authorized under military leave with pay and benefits.
34 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
SB665 Engrossed -101- LRB9000602EGfg
1 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
2 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-628,
3 eff. 8-9-96; revised 8-23-96.)
4 (Text of Section after amendment by P.A. 89-507)
5 Sec. 3. Definitions. Unless the context otherwise
6 requires, the following words and phrases as used in this Act
7 shall have the following meanings. The Department may define
8 these and other words and phrases separately for the purpose
9 of implementing specific programs providing benefits under
10 this Act.
11 (a) "Administrative service organization" means any
12 person, firm or corporation experienced in the handling of
13 claims which is fully qualified, financially sound and
14 capable of meeting the service requirements of a contract of
15 administration executed with the Department.
16 (b) "Annuitant" means (1) an employee who retires, or
17 has retired, on or after January 1, 1966 on an immediate
18 annuity under the provisions of Articles 2, 14, 15 (including
19 an employee who has retired and is receiving a retirement
20 annuity under an optional program established under Section
21 15-158.2 and who would also be eligible for a retirement
22 annuity had that person been a participant in the State
23 University Retirement System), paragraphs (b) or (c) of
24 Section 16-106, or Article 18 of the Illinois Pension Code;
25 (2) any person who was receiving group insurance coverage
26 under this Act as of March 31, 1978 by reason of his status
27 as an annuitant, even though the annuity in relation to which
28 such coverage was provided is a proportional annuity based on
29 less than the minimum period of service required for a
30 retirement annuity in the system involved; (3) any person not
31 otherwise covered by this Act who has retired as a
32 participating member under Article 2 of the Illinois Pension
33 Code but is ineligible for the retirement annuity under
34 Section 2-119 of the Illinois Pension Code; (4) the spouse of
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1 any person who is receiving a retirement annuity under
2 Article 18 of the Illinois Pension Code and who is covered
3 under a group health insurance program sponsored by a
4 governmental employer other than the State of Illinois and
5 who has irrevocably elected to waive his or her coverage
6 under this Act and to have his or her spouse considered as
7 the "annuitant" under this Act and not as a "dependent"; or
8 (5) an employee who retires, or has retired, from a qualified
9 position, as determined according to rules promulgated by the
10 Director, under a qualified local government or a qualified
11 rehabilitation facility or a qualified domestic violence
12 shelter or service. (For definition of "retired employee",
13 see (p) post).
14 (c) "Carrier" means (1) an insurance company, a
15 corporation organized under the Limited Health Service
16 Organization Act or the Voluntary Health Services Plan Act, a
17 partnership, or other nongovernmental organization, which is
18 authorized to do group life or group health insurance
19 business in Illinois, or (2) the State of Illinois as a
20 self-insurer.
21 (d) "Compensation" means salary or wages payable on a
22 regular payroll by the State Treasurer on a warrant of the
23 State Comptroller out of any State, trust or federal fund, or
24 by the Governor of the State through a disbursing officer of
25 the State out of a trust or out of federal funds, or by any
26 Department out of State, trust, federal or other funds held
27 by the State Treasurer or the Department, to any person for
28 personal services currently performed, and ordinary or
29 accidental disability benefits under Articles 2, 14, 15
30 (including ordinary or accidental disability benefits under
31 an optional program established under Section 15-158.2),
32 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
33 Illinois Pension Code, for disability incurred after January
34 1, 1966, or benefits payable under the Workers' Compensation
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1 or Occupational Diseases Act or benefits payable under a sick
2 pay plan established in accordance with Section 36 of the
3 State Finance Act. "Compensation" also means salary or wages
4 paid to an employee of any qualified local government or
5 qualified rehabilitation facility or a qualified domestic
6 violence shelter or service.
7 (e) "Commission" means the State Employees Group
8 Insurance Advisory Commission authorized by this Act.
9 Commencing July 1, 1984, "Commission" as used in this Act
10 means the Illinois Economic and Fiscal Commission as
11 established by the Legislative Commission Reorganization Act
12 of 1984.
13 (f) "Contributory", when referred to as contributory
14 coverage, shall mean optional coverages or benefits elected
15 by the member toward the cost of which such member makes
16 contribution, or which are funded in whole or in part through
17 the acceptance of a reduction in earnings or the foregoing of
18 an increase in earnings by an employee, as distinguished from
19 noncontributory coverage or benefits which are paid entirely
20 by the State of Illinois without reduction of the member's
21 salary.
22 (g) "Department" means any department, institution,
23 board, commission, officer, court or any agency of the State
24 government receiving appropriations and having power to
25 certify payrolls to the Comptroller authorizing payments of
26 salary and wages against such appropriations as are made by
27 the General Assembly from any State fund, or against trust
28 funds held by the State Treasurer and includes boards of
29 trustees of the retirement systems created by Articles 2, 14,
30 15, 16 and 18 of the Illinois Pension Code. "Department"
31 also includes the Illinois Comprehensive Health Insurance
32 Board and the Illinois Rural Bond Bank.
33 (h) "Dependent", when the term is used in the context of
34 the health and life plan, means a member's spouse and any
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1 unmarried child (1) from birth to age 19 including an adopted
2 child, a child who lives with the member from the time of the
3 filing of a petition for adoption until entry of an order of
4 adoption, a stepchild or recognized child who lives with the
5 member in a parent-child relationship, or a child who lives
6 with the member if such member is a court appointed guardian
7 of the child, or (2) age 19 to 23 enrolled as a full-time
8 student in any accredited school, financially dependent upon
9 the member, and eligible as a dependent for Illinois State
10 income tax purposes, or (3) age 19 or over who is mentally or
11 physically handicapped as defined in the Illinois Insurance
12 Code. For the health plan only, the term "dependent" also
13 includes any person enrolled prior to the effective date of
14 this Section who is dependent upon the member to the extent
15 that the member may claim such person as a dependent for
16 Illinois State income tax deduction purposes; no other such
17 person may be enrolled.
18 (i) "Director" means the Director of the Illinois
19 Department of Central Management Services.
20 (j) "Eligibility period" means the period of time a
21 member has to elect enrollment in programs or to select
22 benefits without regard to age, sex or health.
23 (k) "Employee" means and includes each officer or
24 employee in the service of a department who (1) receives his
25 compensation for service rendered to the department on a
26 warrant issued pursuant to a payroll certified by a
27 department or on a warrant or check issued and drawn by a
28 department upon a trust, federal or other fund or on a
29 warrant issued pursuant to a payroll certified by an elected
30 or duly appointed officer of the State or who receives
31 payment of the performance of personal services on a warrant
32 issued pursuant to a payroll certified by a Department and
33 drawn by the Comptroller upon the State Treasurer against
34 appropriations made by the General Assembly from any fund or
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1 against trust funds held by the State Treasurer, and (2) is
2 employed full-time or part-time in a position normally
3 requiring actual performance of duty during not less than 1/2
4 of a normal work period, as established by the Director in
5 cooperation with each department, except that persons elected
6 by popular vote will be considered employees during the
7 entire term for which they are elected regardless of hours
8 devoted to the service of the State, and (3) except that
9 "employee" does not include any person who is not eligible by
10 reason of such person's employment to participate in one of
11 the State retirement systems under Articles 2, 14, 15 (either
12 the regular Article 15 system or an optional program
13 established under Section 15-158.2) or 18, or under paragraph
14 (b) or (c) of Section 16-106, of the Illinois Pension Code,
15 but such term does include persons who are employed during
16 the 6 month qualifying period under Article 14 of the
17 Illinois Pension Code. Such term also includes any person
18 who (1) after January 1, 1966, is receiving ordinary or
19 accidental disability benefits under Articles 2, 14, 15
20 (including ordinary or accidental disability benefits under
21 an optional program established under Section 15-158.2),
22 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
23 Illinois Pension Code, for disability incurred after January
24 1, 1966, (2) receives total permanent or total temporary
25 disability under the Workers' Compensation Act or
26 Occupational Disease Act as a result of injuries sustained or
27 illness contracted in the course of employment with the State
28 of Illinois, or (3) is not otherwise covered under this Act
29 and has retired as a participating member under Article 2 of
30 the Illinois Pension Code but is ineligible for the
31 retirement annuity under Section 2-119 of the Illinois
32 Pension Code. However, a person who satisfies the criteria
33 of the foregoing definition of "employee" except that such
34 person is made ineligible to participate in the State
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1 Universities Retirement System by clause (4) of the first
2 paragraph of Section 15-107 of the Illinois Pension Code is
3 also an "employee" for the purposes of this Act. "Employee"
4 also includes any person receiving or eligible for benefits
5 under a sick pay plan established in accordance with Section
6 36 of the State Finance Act. "Employee" also includes each
7 officer or employee in the service of a qualified local
8 government, including persons appointed as trustees of
9 sanitary districts regardless of hours devoted to the service
10 of the sanitary district, and each employee in the service of
11 a qualified rehabilitation facility and each full-time
12 employee in the service of a qualified domestic violence
13 shelter or service, as determined according to rules
14 promulgated by the Director.
15 (l) "Member" means an employee, annuitant, retired
16 employee or survivor.
17 (m) "Optional coverages or benefits" means those
18 coverages or benefits available to the member on his or her
19 voluntary election, and at his or her own expense.
20 (n) "Program" means the group life insurance, health
21 benefits and other employee benefits designed and contracted
22 for by the Director under this Act.
23 (o) "Health plan" means a self-insured health insurance
24 program offered by the State of Illinois for the purposes of
25 benefiting employees by means of providing, among others,
26 wellness programs, utilization reviews, second opinions and
27 medical fee reviews, as well as for paying for hospital and
28 medical care up to the maximum coverage provided by the plan,
29 to its members and their dependents.
30 (p) "Retired employee" means any person who would be an
31 annuitant as that term is defined herein but for the fact
32 that such person retired prior to January 1, 1966. Such term
33 also includes any person formerly employed by the University
34 of Illinois in the Cooperative Extension Service who would be
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1 an annuitant but for the fact that such person was made
2 ineligible to participate in the State Universities
3 Retirement System by clause (4) of the first paragraph of
4 Section 15-107 of the Illinois Pension Code.
5 (q) "Survivor" means a person receiving an annuity as a
6 survivor of an employee or of an annuitant. "Survivor" also
7 includes: (1) the surviving dependent of a person who
8 satisfies the definition of "employee" except that such
9 person is made ineligible to participate in the State
10 Universities Retirement System by clause (4) of the first
11 paragraph of Section 15-107 of the Illinois Pension Code; and
12 (2) the surviving dependent of any person formerly employed
13 by the University of Illinois in the Cooperative Extension
14 Service who would be an annuitant except for the fact that
15 such person was made ineligible to participate in the State
16 Universities Retirement System by clause (4) of the first
17 paragraph of Section 15-107 of the Illinois Pension Code.
18 (r) "Medical services" means the services provided
19 within the scope of their licenses by practitioners in all
20 categories licensed under the Medical Practice Act of 1987.
21 (s) "Unit of local government" means any county,
22 municipality, township, school district, special district or
23 other unit, designated as a unit of local government by law,
24 which exercises limited governmental powers or powers in
25 respect to limited governmental subjects, any not-for-profit
26 association with a membership that primarily includes
27 townships and township officials, that has duties that
28 include provision of research service, dissemination of
29 information, and other acts for the purpose of improving
30 township government, and that is funded wholly or partly in
31 accordance with Section 85-15 of the Township Code; any
32 not-for-profit corporation or association, with a membership
33 consisting primarily of municipalities, that operates its own
34 utility system, and provides research, training,
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1 dissemination of information, or other acts to promote
2 cooperation between and among municipalities that provide
3 utility services and for the advancement of the goals and
4 purposes of its membership; and the Illinois Association of
5 Park Districts. "Qualified local government" means a unit of
6 local government approved by the Director and participating
7 in a program created under subsection (i) of Section 10 of
8 this Act.
9 (t) "Qualified rehabilitation facility" means any
10 not-for-profit organization that is accredited by the
11 Commission on Accreditation of Rehabilitation Facilities or
12 certified by the Department of Human Services (as successor
13 to the Department of Mental Health and Developmental
14 Disabilities) to provide services to persons with
15 disabilities and which receives funds from the State of
16 Illinois for providing those services, approved by the
17 Director and participating in a program created under
18 subsection (j) of Section 10 of this Act.
19 (u) "Qualified domestic violence shelter or service"
20 means any Illinois domestic violence shelter or service and
21 its administrative offices funded by the Department of Human
22 Services (as successor to the Illinois Department of Public
23 Aid), approved by the Director and participating in a program
24 created under subsection (k) of Section 10.
25 (v) "TRS benefit recipient" means a person who:
26 (1) is not a "member" as defined in this Section;
27 and
28 (2) is receiving a monthly benefit or retirement
29 annuity under Article 16 of the Illinois Pension Code;
30 and
31 (3) either (i) has at least 8 years of creditable
32 service under Article 16 of the Illinois Pension Code, or
33 (ii) was enrolled in the health insurance program offered
34 under that Article on January 1, 1996, or (iii) is the
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1 survivor of a benefit recipient who had at least 8 years
2 of creditable service under Article 16 of the Illinois
3 Pension Code or was enrolled in the health insurance
4 program offered under that Article on the effective date
5 of this amendatory Act of 1995, or (iv) is a recipient or
6 survivor of a recipient of a disability benefit under
7 Article 16 of the Illinois Pension Code.
8 (w) "TRS dependent beneficiary" means a person who:
9 (1) is not a "member" or "dependent" as defined in
10 this Section; and
11 (2) is a TRS benefit recipient's: (A) spouse, (B)
12 dependent parent who is receiving at least half of his or
13 her support from the TRS benefit recipient, or (C)
14 unmarried natural or adopted child who is (i) under age
15 19, or (ii) enrolled as a full-time student in an
16 accredited school, financially dependent upon the TRS
17 benefit recipient, eligible as a dependent for Illinois
18 State income tax purposes, and either is under age 23 24
19 or was, on January 1, 1996, participating as a dependent
20 beneficiary in the health insurance program offered under
21 Article 16 of the Illinois Pension Code, or (iii) age 19
22 or over who is mentally or physically handicapped as
23 defined in the Illinois Insurance Code.
24 (x) "Military leave with pay and benefits" refers to
25 individuals in basic training for reserves, special/advanced
26 training, annual training, emergency call up, or activation
27 by the President of the United States with approved pay and
28 benefits.
29 (y) "Military leave without pay and benefits" refers to
30 individuals who enlist for active duty in a regular component
31 of the U.S. Armed Forces or other duty not specified or
32 authorized under military leave with pay and benefits.
33 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
34 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
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1 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-507,
2 eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)
3 (5 ILCS 375/6.6)
4 Sec. 6.6. Contributions to the Teacher Health Insurance
5 Security Fund.
6 (a) Beginning July 1, 1995, all active contributors of
7 the Teachers' Retirement System (established under Article 16
8 of the Illinois Pension Code) who are not employees of a
9 department as defined in Section 3 of this Act shall make
10 contributions toward the cost of annuitant and survivor
11 health benefits at the rate of 0.5% of salary.
12 These contributions shall be deducted by the employer and
13 paid to the System as service agent for the Department of
14 Central Management Services. The System may use the same
15 processes for collecting the contributions required by this
16 subsection that it uses to collect contributions received
17 from school districts and other covered employers under
18 Sections 16-154 and 16-155 of the Illinois Pension Code. An
19 employer may agree to pick up or pay the contributions
20 required under this subsection on behalf of the teacher; such
21 contributions shall be deemed to have been paid by the
22 teacher.
23 A person required to make contributions under this
24 subsection (a) who purchases optional service credit under
25 Article 16 of the Illinois Pension Code for a period services
26 actually performed after June 30, 1995 must also make a
27 contribution under this subsection for that optional credit,
28 at the applicable rate of 0.5% of the salary used in
29 computing the optional service credit, based on the required
30 employee contributions for that optional service credit, plus
31 the interest on this those employee contribution
32 contributions. This contribution shall be collected by the
33 System as service agent for the Department of Central
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1 Management Services. at the time of receiving The
2 contribution required under this subsection for the optional
3 service credit must be paid in full before any annuity based
4 on that credit begins.
5 (b) The Teachers' Retirement System shall promptly
6 deposit all moneys collected under subsection (a) of this
7 Section into the Teacher Health Insurance Security Fund
8 created in Section 6.5 of this Act. The moneys collected
9 under this Section shall be used only for the purposes
10 authorized in Section 6.5 of this Act and shall not be
11 considered to be assets of the Teachers' Retirement System.
12 Contributions made under this Section are not transferable to
13 other pension funds or retirement systems and are not
14 refundable upon termination of service.
15 (c) On or before November 15 of each year, the Board of
16 Trustees of the Teachers' Retirement System shall certify to
17 the Governor, the Director of Central Management Services,
18 and the State Comptroller its estimate of the total amount of
19 contributions to be paid under subsection (a) of this Section
20 6.6 for the next fiscal year. The certification shall
21 include a detailed explanation of the methods and information
22 that the Board relied upon in preparing its estimate. As
23 soon as possible after the effective date of this Section,
24 the Board shall submit its estimate for fiscal year 1996.
25 (d) Beginning in fiscal year 1996, on the first day of
26 each month, or as soon thereafter as may be practical, the
27 State Treasurer and the State Comptroller shall transfer from
28 the General Revenue Fund to the Teacher Health Insurance
29 Security Fund 1/12 of the annual amount appropriated for that
30 fiscal year to the State Comptroller for deposit into the
31 Teacher Health Insurance Security Fund under Section 1.3 of
32 the State Pension Funds Continuing Appropriation Act.
33 (e) Except where otherwise specified in this Section,
34 the definitions that apply to Article 16 of the Illinois
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1 Pension Code apply to this Section.
2 (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.)
3 Section 60. The Illinois Pension Code is amended by
4 changing Sections 14-118, 14-119, 14-120, 14-128, 15-131,
5 15-145, 16-106, 16-140, 16-151, 16-155, 16-158.1, 16-179,
6 16-185, and 16-187 and adding Sections 16-169.1, 16-181.3,
7 and 17-134.1 as follows:
8 (40 ILCS 5/14-118) (from Ch. 108 1/2, par. 14-118)
9 Sec. 14-118. Widow's annuity - Conditions for payment.
10 A widow who exercises the right of election to receive an
11 annuity pursuant to this Section is entitled to a lump sum
12 payment of $500 plus a widow's annuity, if
13 (1) she was married to the deceased member for at
14 least 1 year prior to his death or retirement, whichever
15 first occurs, and also on the day of the last termination
16 of his service as a State employee;
17 (2) the deceased member had at least 8 years of
18 creditable service if death occurred while in service, or
19 while on leave of absence from service, or while in
20 receipt of a nonoccupational disability or occupational
21 disability benefit, or after retirement;
22 (3) she was nominated exclusively to receive the
23 entire death benefit payable under this Article;
24 (4) death of the member occurred after withdrawal,
25 and he had fulfilled the prescribed age and service
26 conditions for establishing a right in a retirement
27 annuity; and
28 (5) she elected to receive the widow's annuity
29 within 6 months from the date of death of the employee,
30 otherwise the survivors annuity if applicable, shall be
31 payable.
32 If a widow's annuity beneficiary becomes entitled to a
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1 survivors annuity and a widow's annuity, she shall elect to
2 receive only one of such annuities.
3 The surviving spouse of a person who (1) died on or after
4 January 1, 1985, (2) withdrew from service prior to August 1,
5 1953, (3) was receiving an annuity from the system at the
6 time of death, and (4) meets all other requirements of this
7 Section, shall be entitled to the benefits provided under
8 this Section.
9 A widow's annuity shall be payable beginning on the first
10 of the month following the date of death of the member if the
11 widow has then attained age 50 or, if she is under age 50 on
12 such date, on the first of the month following her attainment
13 of such age; provided, that if an unmarried child or children
14 of the member under age 18 (or under age 22 if a full-time
15 student) also survive him, and the child or children are
16 under the care of the eligible widow, the widow's annuity
17 shall begin on the first of the month following the member's
18 death without regard to the age of the widow. If she is
19 under age 50 at the death of the member and she qualifies for
20 a widow's annuity, she is entitled to receive the lump sum
21 payment immediately upon application, but payment of the
22 widow's annuity shall be deferred as provided above.
23 The provision for a widow's annuity shall not be
24 construed to affect the payment of a reversionary annuity.
25 If a widow qualifies for more than one widow's annuity, or
26 for a widow's annuity and a survivors annuity, she shall
27 elect to receive only one of such annuities.
28 This Section shall not apply to the widow of any male
29 person who first became a member after July 19, 1961.
30 (Source: P.A. 84-1028.)
31 (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
32 Sec. 14-119. Amount of widow's annuity.
33 (a) The widow's annuity shall be 50% of the amount of
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1 retirement annuity payable to the member on the date of death
2 while on retirement if an annuitant, or on the date of his
3 death while in service if an employee, regardless of his age
4 on such date, or on the date of withdrawal if death occurred
5 after termination of service under the conditions prescribed
6 in the preceding Section.
7 (b) If an eligible widow, regardless of age, has in her
8 care any unmarried child or children of the member under age
9 18 (under age 22 if a full-time student), the widow's annuity
10 shall be increased in the amount of 5% of the retirement
11 annuity for each such child, but the combined payments for a
12 widow and children shall not exceed 66 2/3% of the member's
13 earned retirement annuity.
14 The amount of retirement annuity from which the widow's
15 annuity is derived shall be that earned by the member without
16 regard to whether he attained age 60 prior to his withdrawal
17 under the conditions stated or prior to his death.
18 (c) Adopted children shall be considered as children of
19 the member only if the proceedings for adoption were
20 commenced at least 1 year prior to the member's death.
21 Marriage of a child shall render the child ineligible for
22 further consideration in the increase in the amount of the
23 widow's annuity.
24 Attainment of age 18 (age 22 if a full-time student) of a
25 child shall render a child him ineligible for further
26 consideration in the increase of the widow's annuity, but the
27 annuity to the widow shall be continued thereafter, without
28 regard to her age at that time.
29 (d) A widow's annuity payable on account of any covered
30 employee who shall have been a covered employee for at least
31 18 months shall be reduced by 1/2 of the amount of survivors
32 benefits to which his beneficiaries are eligible under the
33 provisions of the Federal Social Security Act, except that
34 (1) the amount of any widow's annuity payable under this
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1 Article shall not be reduced by reason of any increase under
2 that Act which occurs after the offset required by this
3 subsection is first applied to that annuity, and (2) for
4 benefits granted on or after January 1, 1992, the offset
5 under this subsection (d) shall not exceed 50% of the amount
6 of widow's annuity otherwise payable.
7 (e) Upon the death of a recipient of a widow's annuity
8 the excess, if any, of the member's accumulated
9 contributions plus credited interest over all annuity
10 payments to the member and widow, exclusive of the $500 lump
11 sum payment, shall be paid to the named beneficiary of the
12 widow, or if none has been named, to the estate of the widow,
13 provided no reversionary annuity is payable.
14 (f) On January 1, 1981, any recipient of a widow's
15 annuity who was receiving a widow's annuity on or before
16 January 1, 1971, shall have her widow's annuity then being
17 paid increased by 1% for each full year which has elapsed
18 from the date the widow's annuity began. On January 1, 1982,
19 any recipient of a widow's annuity who began receiving a
20 widow's annuity after January 1, 1971, but before January 1,
21 1981, shall have her widow's annuity then being paid
22 increased by 1% for each full year which has elapsed from the
23 date the widow's annuity began. On January 1, 1987, any
24 recipient of a widow's annuity who began receiving the
25 widow's annuity on or before January 1, 1977, shall have the
26 monthly widow's annuity increased by $1 for each full year
27 which has elapsed since the date the annuity began.
28 (g) Beginning January 1, 1990, every widow's annuity
29 shall be increased (1) on each January 1 occurring on or
30 after the commencement of the annuity if the deceased member
31 died while receiving a retirement annuity, or (2) in other
32 cases, on each January 1 occurring on or after the first
33 anniversary of the commencement of the annuity, by an amount
34 equal to 3% of the current amount of the annuity, including
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1 any previous increases under this Article. Such increases
2 shall apply without regard to whether the deceased member was
3 in service on or after the effective date of Public Act
4 86-1488, but shall not accrue for any period prior to January
5 1, 1990.
6 (Source: P.A. 86-273; 86-1488; 87-794.)
7 (40 ILCS 5/14-120) (from Ch. 108 1/2, par. 14-120)
8 Sec. 14-120. Survivors annuities - Conditions for
9 payments. A survivors annuity is established for all members
10 of the System. Upon the death of any male person who was a
11 member on July 19, 1961, however, his widow may have the
12 option of receiving the widow's annuity provided in this
13 Article, in lieu of the survivors annuity.
14 (a) A survivors annuity beneficiary, as herein defined,
15 is eligible for a survivors annuity if the deceased member
16 had completed at least 1 1/2 years of contributing creditable
17 service if death occurred:
18 (1) while in service;
19 (2) while on an approved or authorized leave of
20 absence from service, not exceeding one year
21 continuously; or
22 (3) while in receipt of a non-occupational
23 disability or an occupational disability benefit.
24 (b) If death of the member occurs after withdrawal, the
25 survivors annuity beneficiary is eligible for such annuity
26 only if the member had fulfilled at the date of withdrawal
27 the prescribed service conditions for establishing a right in
28 a retirement annuity.
29 (c) Payment of the survivors annuity shall begin
30 immediately if the beneficiary is 50 years or over, or upon
31 attainment of age 50 if the beneficiary is under that age at
32 the date of the member's death. In the case of survivors of a
33 member whose death occurred between November 1, 1970 and July
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1 15, 1971, the payment of the survivors annuity shall begin
2 upon October 1, 1977, if the beneficiary is then 50 years of
3 age or older, or upon the attainment of age 50 if the
4 beneficiary is under that age on October 1, 1977.
5 If an eligible child or children, under the care of the
6 spouse also survive the member, the survivors annuity shall
7 begin immediately without regard to whether the beneficiary
8 has attained age 50.
9 Benefits under this Section shall accrue and be payable
10 for whole calendar months, beginning on the first day of the
11 month after the initiating event occurs and ending on the
12 last day of the month in which the terminating event occurs.
13 (d) A survivor annuity beneficiary means:
14 (1) A spouse of a member or annuitant if the
15 current marriage with member was in effect at least one
16 year at the date of the member's death or at least one
17 year at the date of his or her withdrawal, whichever
18 first occurs.;
19 (2) An unmarried child under age 18 (under age 22
20 if a full-time student) of the member or annuitant; an
21 unmarried stepchild under age 18 (under age 22 if a
22 full-time student) who has been such for at least one
23 year at the date of the member's death or at least one
24 year at the date of withdrawal, whichever first occurs;
25 an unmarried adopted child under age 18 (under age 22 if
26 a full-time student) if the adoption proceedings were
27 initiated at least one year prior to the death or
28 withdrawal of the member or annuitant, whichever first
29 occurs; and an unmarried child over age 18 if he or she
30 is dependent by reason of a physical or mental
31 disability, so long as the such physical or mental
32 disability continues. For purposes of this subsection
33 sub-section, disability means inability to engage in any
34 substantial gainful activity by reason of any medically
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1 determinable physical or mental impairment which can be
2 expected to result in death or which has lasted or can be
3 expected to last for a continuous period of not less than
4 12 months.;
5 (3) A dependent parent of the member or annuitant;
6 a dependent step-parent by a marriage contracted before
7 the member or annuitant attained age 18; or a dependent
8 adopting parent by whom the member or annuitant was
9 adopted before he or she attained age 18.
10 (e) Remarriage before age 55 or death of a spouse;
11 marriage or death of a child; or remarriage before age 55 or
12 death of a parent terminates the survivors annuity payable on
13 account of such beneficiary. Remarriage of a prospective
14 beneficiary prior to the attainment of age 50 disqualifies
15 the beneficiary for the annuity expectancy hereunder.
16 Termination due to a marriage or remarriage shall be
17 permanent regardless of any future changes in marital status.
18 Any person whose survivors annuity was terminated during
19 1978 or 1979 due to remarriage at age 55 or over shall be
20 eligible to apply, not later than July 1, 1990, for a
21 resumption of that annuity, to begin on July 1, 1990.
22 (f) The term "dependent" relating to a survivors annuity
23 means a beneficiary of a survivors annuity who was receiving
24 from the member at the date of the member's death at least
25 1/2 of the support for maintenance including board, lodging,
26 medical care and like living costs.
27 (g) If there is no eligible spouse surviving the member,
28 or if a survivors annuity beneficiary includes a spouse who
29 dies or remarries, the annuity is payable to an unmarried
30 child or children. If at the date of death of the member
31 there is no spouse or unmarried child, payments shall be made
32 to a dependent parent or parents. If no eligible survivors
33 annuity beneficiary survives the member, the non-occupational
34 death benefit is payable in the manner provided in this
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1 Article.
2 (h) Survivor benefits do not affect any reversionary
3 annuity.
4 (i) If a survivors annuity beneficiary becomes entitled
5 to a widow's annuity or one or more survivors annuities or
6 both such annuities, the beneficiary shall elect to receive
7 only one of such annuities.
8 (j) Contributing creditable service under the State
9 Universities Retirement System and the Teachers Retirement
10 System of the State of Illinois shall be considered in
11 determining whether the member has met the contributing
12 service requirements of this Section.
13 (k) In lieu of the Survivor's Annuity described in this
14 Section, the spouse of the member has the option to select
15 the Nonoccupational Death Benefit described in this Article,
16 provided the spouse is the sole survivor and the sole
17 nominated beneficiary of the member.
18 (l) The changes made to this Section and Sections
19 14-118, 14-119, and 14-128 by this amendatory Act of 1997,
20 relating to benefits for certain unmarried children who are
21 full-time students under age 22, apply without regard to
22 whether the deceased member was in service on or after the
23 effective date of this amendatory Act of 1997. These changes
24 do not authorize the repayment of a refund or a re-election
25 of benefits, and any benefit or increase in benefits
26 resulting from these changes is not payable retroactively for
27 any period before the effective date of this amendatory Act
28 of 1997.
29 (Source: P.A. 86-273.)
30 (40 ILCS 5/14-128) (from Ch. 108 1/2, par. 14-128)
31 Sec. 14-128. Occupational death benefit. An
32 occupational death benefit is provided for a member of the
33 System whose death, prior to retirement, is the proximate
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1 result of bodily injuries sustained or a hazard undergone
2 while in the performance and within the scope of the member's
3 duties.
4 (a) Conditions for payment.
5 Exclusive of the lump sum payment provided for herein,
6 all annuities under this Section shall accrue and be payable
7 for complete calendar months, beginning on the first day of
8 the month next following the month in which the initiating
9 event occurs and ending on the last day of the month in which
10 the terminating event occurs.
11 The following named survivors of the member may be
12 eligible for an annuity under this Section:
13 (i) The member's spouse.
14 (ii) An unmarried child of the member under age 18
15 (under age 22 if a full-time student); an unmarried
16 stepchild under age 18 (under age 22 if a full-time
17 student) who has been such for at least one year at the
18 date of the member's death; an unmarried adopted child
19 under age 18 (under age 22 if a full-time student) if the
20 adoption proceedings were initiated at least one year
21 prior to the death of the member; and an unmarried child
22 over age 18 who is dependent by reason of a physical or
23 mental disability, for so long as such physical or mental
24 disability continues. For the purposes of this Section
25 disability means inability to engage in any substantial
26 gainful activity by reason of any medically determinable
27 physical or mental impairment which can be expected to
28 result in death or which has lasted or can be expected to
29 last for a continuous period of not less than 12 months.
30 (iii) If no spouse or eligible children survive: a
31 dependent parent of the member; a dependent step-parent
32 by a marriage contracted before the member attained age
33 18; or a dependent adopting parent by whom the member was
34 adopted before he or she attained age 18.
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1 The term "dependent" relating to an Occupational Death
2 Benefit means a survivor of the member who was receiving from
3 the member at the date of the member's death at least 1/2 of
4 the support for maintenance including board, lodging, medical
5 care and like living costs.
6 Payment of the annuity shall continue until the
7 occurrence of the following:
8 (1) remarriage before age 55 or death, in the case
9 of a surviving spouse;
10 (2) attainment of age 18 or termination of
11 disability, death, or marriage, in the case of an
12 eligible child;
13 (3) remarriage before age 55 or death, in the case
14 of a dependent parent.
15 If none of the aforementioned beneficiaries is living at
16 the date of death of the member, no occupational death
17 benefit shall be payable, but the nonoccupational death
18 benefit shall be payable as provided in this Article.
19 (b) Amount of benefit.
20 The member's accumulated contributions plus credited
21 interest shall be payable in a lump sum to such person as the
22 member has nominated by written direction, duly acknowledged
23 and filed with the Board, or if no such nomination to the
24 estate of the member. When an annuitant is re-employed by a
25 Department, the accumulated contributions plus credited
26 interest payable on the member's account shall, if the member
27 has not previously elected a reversionary annuity, consist of
28 the excess, if any, of the member's total accumulated
29 contributions plus credited interest for all creditable
30 service over the total amount of all retirement annuity
31 payments received by the member prior to death.
32 In addition to the foregoing payment, an annuity is
33 provided for eligible survivors as follows:
34 (1) If the survivor is a spouse only, the annuity
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1 shall be 50% of the member's final average compensation.
2 (2) If the spouse has in her care an eligible child
3 or children, the annuity shall be increased by an amount
4 equal to 15% of the final average compensation on account
5 of each such child, subject to a limitation on the
6 combined annuities to a surviving spouse and children of
7 75% of final average compensation.
8 (3) If there is no surviving spouse, or if the
9 surviving spouse dies or remarries while a child remains
10 eligible, then each such child shall be entitled to an
11 annuity of 15% of the deceased member's final average
12 compensation, subject to a limitation of 50% of final
13 average compensation to all such children.
14 (4) If there is no surviving spouse or eligible
15 children, then an annuity shall be payable to the
16 member's dependent parents, equal to 25% of final average
17 compensation to each such beneficiary.
18 If any annuity payable under this Section is less than
19 the corresponding survivors annuity, the beneficiary or
20 beneficiaries of the annuity under this Section may elect to
21 receive the survivors annuity and the Nonoccupational Death
22 Benefit provided for in this Article in lieu of the annuity
23 provided under this Section.
24 (c) Occupational death claims pending adjudication by
25 the Industrial Commission or a ruling by the agency
26 responsible for determining the liability of the State under
27 the "Workers' Compensation Act" or "Workers' Occupational
28 Diseases Act" shall be payable under the Survivor's Annuity
29 Section of this Article until a ruling or adjudication occurs
30 if the beneficiary or beneficiaries: (1) meet all conditions
31 for payment as prescribed in this Article; and (2) execute an
32 assignment of benefits payable as a result of adjudication by
33 the Industrial Commission or a ruling by the agency
34 responsible for determining the liability of the State under
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1 such Acts. The assignment shall be made to the System and
2 shall be for an amount equal to the excess of benefits paid
3 under the Survivor's Annuity Section of this Article over
4 benefits payable as a result of adjudication of the Workers'
5 Compensation claim computed from the date of death of the
6 member.
7 (d) Every occupational death annuity payable under this
8 Section shall be increased on each January 1 occurring on or
9 after (i) January 1, 1990, or (ii) the first anniversary of
10 the commencement of the annuity, whichever occurs later, by
11 an amount equal to 3% of the current amount of the annuity,
12 including any previous increases under this Article, without
13 regard to whether the deceased member was in service on the
14 effective date of this amendatory Act of 1991.
15 (Source: P.A. 86-273; 86-1488.)
16 (40 ILCS 5/15-131) (from Ch. 108 1/2, par. 15-131)
17 Sec. 15-131. Survivors insurance beneficiary. "Survivors
18 insurance beneficiary": The spouse, dependent unmarried child
19 under age 18 (under age 22 if a full-time student), unmarried
20 child over age 18 who is dependent by reason of a physical or
21 mental disability which began prior to attainment of that
22 age, or dependent parent, who could qualify for survivors
23 insurance payments under this Article.
24 (Source: P.A. 86-273; 86-1488.)
25 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
26 Sec. 15-145. Survivors insurance benefits; Conditions
27 and amounts.
28 (a) The survivors insurance benefits provided under this
29 Section shall be payable upon the death of (1) a
30 participating employee with at least 1 1/2 years of service,
31 (2) a participant who terminated employment with at least 10
32 years of service, and (3) an annuitant in receipt of a
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1 retirement annuity or disability retirement annuity under
2 this Article.
3 Service under the State Employees' Retirement System of
4 Illinois, the Teachers' Retirement System of the State of
5 Illinois and the Public School Teacher's Pension and
6 Retirement Fund of Chicago shall be considered in determining
7 eligibility for survivors benefits under this Section.
8 If by law, a function of a governmental unit, as defined
9 by Section 20-107, is transferred in whole or in part to an
10 employer, and an employee transfers employment from this
11 governmental unit to such employer within 6 months after the
12 transfer of this function, the service credits in the
13 governmental unit's retirement system which have been
14 validated under Section 20-109 shall be considered in
15 determining eligibility for survivors benefits under this
16 Section.
17 (b) A surviving spouse of a deceased participant, or of
18 a deceased annuitant who had a survivors insurance
19 beneficiary at the time of retirement, shall receive a
20 survivors annuity of 30% of the final rate of earnings.
21 Payments shall begin on the day following the participant's
22 or annuitant's death or the date the surviving spouse attains
23 age 50, whichever is later, and continue until the death of
24 the surviving spouse. The annuity shall be payable to the
25 surviving spouse prior to attainment of age 50 if the
26 surviving spouse has in his or her care a deceased
27 participant's or annuitant's dependent unmarried child under
28 age 18 (under age 22 if a full-time student) who is eligible
29 for a survivors annuity. Remarriage of a surviving spouse
30 prior to attainment of age 55 shall disqualify him or her for
31 the receipt of a survivors annuity.
32 (c) Each dependent unmarried child under age 18 (under
33 age 22 if a full-time student) 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 the final rate of earnings, and (2) 10% of the final rate of
4 earnings divided by the number of children entitled to this
5 benefit. Payments shall begin on the day following the
6 participant's or annuitant's death and continue until the
7 child marries, dies, or attains age 18 (age 22 if a full-time
8 student). If the child is in the care of a surviving spouse
9 who is eligible for survivors insurance benefits, the child's
10 benefit shall be paid to the surviving spouse.
11 Each unmarried child over age 18 of a deceased
12 participant or of a deceased annuitant who had a survivor's
13 insurance beneficiary at the time of his or her retirement,
14 and who was dependent upon the participant or annuitant by
15 reason of a physical or mental disability which began prior
16 to the date the child attained age 18 (age 22 if a full-time
17 student), shall receive a survivor's annuity equal to the sum
18 of (1) 20% of the final rate of earnings, and (2) 10% of the
19 final rate of earnings divided by the number of children
20 entitled to survivors benefits. Payments shall begin on the
21 day following the participant's or annuitant's death and
22 continue until the child marries, dies, or is no longer
23 disabled. If the child is in the care of a surviving spouse
24 who is eligible for survivors insurance benefits, the child's
25 benefit may be paid to the surviving spouse. For the
26 purposes of this Section, disability means inability to
27 engage in any substantial gainful activity by reason of any
28 medically determinable physical or mental impairment that can
29 be expected to result in death or that has lasted or can be
30 expected to last for a continuous period of at least one
31 year.
32 (d) Each dependent parent of a deceased participant, or
33 of a deceased annuitant who had a survivors insurance
34 beneficiary at the time of his or her retirement, shall
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1 receive a survivors annuity equal to the sum of (1) 20% of
2 final rate of earnings, and (2) 10% of final rate of earnings
3 divided by the number of parents who qualify for the benefit.
4 Payments shall begin when the parent reaches age 55 or the
5 day following the participant's or annuitant's death,
6 whichever is later, and continue until the parent dies.
7 Remarriage of a parent prior to attainment of age 55 shall
8 disqualify the parent for the receipt of a survivors annuity.
9 (e) In addition to the survivors annuity provided above,
10 each survivors insurance beneficiary shall, upon death of the
11 participant or annuitant, receive a lump sum payment of
12 $1,000 divided by the number of such beneficiaries.
13 (f) The changes made in this Section by Public Act
14 81-712 pertaining to survivors annuities in cases of
15 remarriage prior to age 55 shall apply to each survivors
16 insurance beneficiary who remarries after June 30, 1979,
17 regardless of the date that the participant or annuitant
18 terminated his employment or died.
19 (g) On January 1, 1981, any person who was receiving a
20 survivors annuity on or before January 1, 1971 shall have the
21 survivors annuity then being paid increased by 1% for each
22 full year which has elapsed from the date the annuity began.
23 On January 1, 1982, any survivor whose annuity began after
24 January 1, 1971, but before January 1, 1981, shall have the
25 survivor's annuity then being paid increased by 1% for each
26 year which has elapsed from the date the survivor's annuity
27 began. On January 1, 1987, any survivor who began receiving a
28 survivor's annuity on or before January 1, 1977, shall have
29 the monthly survivor's annuity increased by $1 for each full
30 year which has elapsed since the date the survivor's annuity
31 began.
32 (h) If the sum of the lump sum and total monthly
33 survivor benefits payable under this Section upon the death
34 of a participant amounts to less than the sum of the death
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1 benefits payable under items (2) and (3) of Section 15-141,
2 the difference shall be paid in a lump sum to the beneficiary
3 of the participant who is living on the date that this
4 additional amount becomes payable.
5 (i) If the sum of the lump sum and total monthly
6 survivor benefits payable under this Section upon the death
7 of an annuitant receiving a retirement annuity or disability
8 retirement annuity amounts to less than the death benefit
9 payable under Section 15-142, the difference shall be paid to
10 the beneficiary of the annuitant who is living on the date
11 that this additional amount becomes payable.
12 (j) Effective on the later of (1) January 1, 1990, or
13 (2) the January 1 on or next after the date on which the
14 survivor annuity begins, if the deceased member died while
15 receiving a retirement annuity, or in all other cases the
16 January 1 nearest the first anniversary of the date the
17 survivor annuity payments begin, every survivors insurance
18 beneficiary shall receive an increase in his or her monthly
19 survivors annuity of 3%. On each January 1 after the initial
20 increase, the monthly survivors annuity shall be increased by
21 3% of the total survivors annuity provided under this
22 Article, including previous increases provided by this
23 subsection. Such increases shall apply to the survivors
24 insurance beneficiaries of each participant and annuitant,
25 whether or not the employment status of the participant or
26 annuitant terminates before the effective date of this
27 amendatory Act of 1990.
28 (k) If the Internal Revenue Code of 1986, as amended,
29 requires that the survivors benefits be payable at an age
30 earlier than that specified in this Section the benefits
31 shall begin at the earlier age, in which event, the
32 survivor's beneficiary shall be entitled only to that amount
33 which is equal to the actuarial equivalent of the benefits
34 provided by this Section.
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1 (l) The changes made to this Section and Section 15-131
2 by this amendatory Act of 1997, relating to benefits for
3 certain unmarried children who are full-time students under
4 age 22, apply without regard to whether the deceased member
5 was in service on or after the effective date of this
6 amendatory Act of 1997. These changes do not authorize the
7 repayment of a refund or a re-election of benefits, and any
8 benefit or increase in benefits resulting from these changes
9 is not payable retroactively for any period before the
10 effective date of this amendatory Act of 1997.
11 (Source: P.A. 86-272; 86-273; 86-1028; 86-1488.)
12 (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
13 (Text of Section before amendment by P.A. 89-507)
14 Sec. 16-106. Teacher. "Teacher": The following
15 individuals, provided that, for employment prior to July 1,
16 1990, they are employed on a full-time basis, or if not
17 full-time, on a permanent and continuous basis in a position
18 in which services are expected to be rendered for at least
19 one school term:
20 (1) Any educational, administrative, professional
21 or other staff employed in the public common schools
22 included within this system in a position requiring
23 certification under the law governing the certification
24 of teachers;
25 (2) Any educational, administrative, professional
26 or other staff employed in any facility of the Department
27 of Children and Family Services, the Department of Mental
28 Health and Developmental Disabilities, or the Department
29 of Rehabilitation Services, in a position requiring
30 certification under the law governing the certification
31 of teachers, and any person who (i) works in such a
32 position for the Department of Corrections, (ii) was a
33 member of this System on May 31, 1987, and (iii) did not
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1 elect to become a member of the State Employees'
2 Retirement System pursuant to Section 14-108.2 of this
3 Code;
4 (3) Any regional superintendent of schools,
5 assistant regional superintendent of schools, State
6 Superintendent of Education; any person employed by the
7 State Board of Education as an executive; any executive
8 of the boards engaged in the service of public common
9 school education in school districts covered under this
10 system of which the State Superintendent of Education is
11 an ex-officio member;
12 (4) Any employee of a school board association
13 operating in compliance with Article 23 of the School
14 Code who is certificated under the law governing the
15 certification of teachers;
16 (5) Any person employed by the retirement system as
17 an executive, and any person employed by the retirement
18 system who is certificated under the law governing the
19 certification of teachers;
20 (6) Any educational, administrative, professional
21 or other staff employed by and under the supervision and
22 control of a regional superintendent of schools, provided
23 such employment position requires the person to be
24 certificated under the law governing the certification of
25 teachers and is in an educational program serving 2 or
26 more districts in accordance with a joint agreement
27 authorized by the School Code or by federal legislation;
28 (7) Any educational, administrative, professional
29 or other staff employed in an educational program
30 serving 2 or more school districts in accordance with a
31 joint agreement authorized by the School Code or by
32 federal legislation and in a position requiring
33 certification under the laws governing the certification
34 of teachers;
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1 (8) Any officer or employee of a statewide teacher
2 organization or officer of a national teacher
3 organization who is certified under the law governing
4 certification of teachers, provided: (i) the individual
5 had previously established creditable service under this
6 Article, (ii) the individual files with the system, on or
7 before January 1, 1990, an irrevocable election to become
8 a member, and (iii) the individual does not receive
9 credit for such service under any other Article of this
10 Code;
11 (9) Any educational, administrative, professional,
12 or other staff employed in a charter school operating in
13 compliance with the Charter Schools Law who is
14 certificated under the law governing the certification of
15 teachers.
16 An annuitant receiving a retirement annuity under this
17 Article or under Article 17 of this Code who is temporarily
18 employed by a board of education or other employer not
19 exceeding that permitted under Section 16-118 is not a
20 "teacher" for purposes of this Article. A person who has
21 received a single-sum retirement benefit under Section
22 16-136.4 of this Article is not a "teacher" for purposes of
23 this Article.
24 (Source: P.A. 89-450, eff. 4-10-96.)
25 (Text of Section after amendment by P.A. 89-507)
26 Sec. 16-106. Teacher. "Teacher": The following
27 individuals, provided that, for employment prior to July 1,
28 1990, they are employed on a full-time basis, or if not
29 full-time, on a permanent and continuous basis in a position
30 in which services are expected to be rendered for at least
31 one school term:
32 (1) Any educational, administrative, professional
33 or other staff employed in the public common schools
34 included within this system in a position requiring
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1 certification under the law governing the certification
2 of teachers;
3 (2) Any educational, administrative, professional
4 or other staff employed in any facility of the Department
5 of Children and Family Services or the Department of
6 Human Services, in a position requiring certification
7 under the law governing the certification of teachers,
8 and any person who (i) works in such a position for the
9 Department of Corrections, (ii) was a member of this
10 System on May 31, 1987, and (iii) did not elect to become
11 a member of the State Employees' Retirement System
12 pursuant to Section 14-108.2 of this Code;
13 (3) Any regional superintendent of schools,
14 assistant regional superintendent of schools, State
15 Superintendent of Education; any person employed by the
16 State Board of Education as an executive; any executive
17 of the boards engaged in the service of public common
18 school education in school districts covered under this
19 system of which the State Superintendent of Education is
20 an ex-officio member;
21 (4) Any employee of a school board association
22 operating in compliance with Article 23 of the School
23 Code who is certificated under the law governing the
24 certification of teachers;
25 (5) Any person employed by the retirement system as
26 an executive, and any person employed by the retirement
27 system who is certificated under the law governing the
28 certification of teachers;
29 (6) Any educational, administrative, professional
30 or other staff employed by and under the supervision and
31 control of a regional superintendent of schools, provided
32 such employment position requires the person to be
33 certificated under the law governing the certification of
34 teachers and is in an educational program serving 2 or
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1 more districts in accordance with a joint agreement
2 authorized by the School Code or by federal legislation;
3 (7) Any educational, administrative, professional
4 or other staff employed in an educational program
5 serving 2 or more school districts in accordance with a
6 joint agreement authorized by the School Code or by
7 federal legislation and in a position requiring
8 certification under the laws governing the certification
9 of teachers;
10 (8) Any officer or employee of a statewide teacher
11 organization or officer of a national teacher
12 organization who is certified under the law governing
13 certification of teachers, provided: (i) the individual
14 had previously established creditable service under this
15 Article, (ii) the individual files with the system, on or
16 before January 1, 1990, an irrevocable election to become
17 a member, and (iii) the individual does not receive
18 credit for such service under any other Article of this
19 Code;
20 (9) Any educational, administrative, professional,
21 or other staff employed in a charter school operating in
22 compliance with the Charter Schools Law who is
23 certificated under the law governing the certification of
24 teachers.
25 An annuitant receiving a retirement annuity under this
26 Article or under Article 17 of this Code who is temporarily
27 employed by a board of education or other employer not
28 exceeding that permitted under Section 16-118 is not a
29 "teacher" for purposes of this Article. A person who has
30 received a single-sum retirement benefit under Section
31 16-136.4 of this Article is not a "teacher" for purposes of
32 this Article.
33 (Source: P.A. 89-450, eff. 4-10-96; 89-507, eff. 7-1-97;
34 revised 10-3-96.)
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1 (40 ILCS 5/16-140) (from Ch. 108 1/2, par. 16-140)
2 Sec. 16-140. Survivors' benefits - definitions. For the
3 purpose of Sections 16-138 through 16-143.2, the following
4 terms shall have the following meanings, unless the context
5 otherwise requires:
6 (1) "Average salary": the average salary for the highest
7 4 consecutive years within the last 10 years of creditable
8 service immediately preceding date of death or retirement,
9 whichever is applicable, or the average salary for the total
10 creditable service if service is less than 4 years.
11 (2) "Member": any teacher included in the membership of
12 the system. However, a teacher who becomes an annuitant of
13 the system or a teacher whose services terminate after 20
14 years of service from any cause other than retirement is
15 considered a member, subject to the conditions and
16 limitations stated in this Article.
17 (3) "Dependent beneficiary": (A) a surviving spouse of a
18 member or annuitant who was married to the member or
19 annuitant for the 12 month period immediately preceding and
20 on the date of death of such member or annuitant, except
21 where a child is born of such marriage, in which case the
22 qualifying period shall not be applicable; (A-1) a surviving
23 spouse of a member or annuitant who (i) was married to the
24 member or annuitant on the date of the member or annuitant's
25 death, (ii) was married to the member or annuitant for a
26 period of at least 12 months (but not necessarily the 12
27 months immediately preceding the member or annuitant's
28 death), (iii) first applied for a survivor's benefit before
29 January 1, 1994, and (iv) has not received a benefit under
30 subsection (a) of Section 16-141 or paragraph (1) of Section
31 16-142; (B) an eligible child of a member or annuitant; and
32 (C) a dependent parent.
33 Unless otherwise designated by the member, eligibility
34 for benefits shall be in the order named, except that a
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1 dependent parent shall be eligible only if there is no other
2 dependent beneficiary. Any benefit to be received by or paid
3 to a dependent beneficiary to be determined under this
4 paragraph as provided in Sections 16-141 and 16-142 may be
5 received by or paid to a trust established for such dependent
6 beneficiary if such dependent beneficiary is living at the
7 time such benefit would be received by or paid to such trust.
8 (4) "Eligible child": an unmarried natural or adopted
9 child of the member or annuitant under age 18 (age 22 if a
10 full-time student). An unmarried natural or adopted child,
11 regardless of age, who is dependent by reason of a physical
12 or mental disability, except any such child receiving
13 benefits under Article III of the Illinois Public Aid Code,
14 is eligible for so long as such physical or mental disability
15 continues. An adopted child, however, is eligible only if
16 the proceedings for adoption were finalized while the child
17 was a minor.
18 For purposes of this subsection, "disability" means an
19 inability to engage in any substantial gainful activity by
20 reason of any medically determinable physical or mental
21 impairment which can be expected to result in death or which
22 has lasted or can be expected to last for a continuous period
23 of not less than 12 months.
24 The changes made to this Section by this amendatory Act
25 of 1997, relating to benefits for certain unmarried children
26 who are full-time students under age 22, apply without regard
27 to whether the deceased member was in service on or after the
28 effective date of this amendatory Act of 1997. These changes
29 do not authorize the repayment of a refund or a re-election
30 of benefits, and any benefit or increase in benefits
31 resulting from these changes is not payable retroactively for
32 any period before the effective date of this amendatory Act
33 of 1997.
34 (5) "Dependent parent": a parent who was receiving at
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1 least 1/2 of his or her support from a member or annuitant
2 for the 12-month period immediately preceding and on the date
3 of such member's or annuitant's death, provided however, that
4 such dependent status terminates upon a member's acceptance
5 of a refund for survivor benefit contributions as provided
6 under Section 16-142.
7 (6) "Non-dependent beneficiary": any person,
8 organization or other entity designated by the member who
9 does not qualify as a dependent beneficiary.
10 (7) "In service": the condition of a member being in
11 receipt of salary as a teacher at any time within 12 months
12 immediately before his or her death, being on leave of
13 absence for which the member, upon return to teaching, would
14 be eligible to purchase service credit under subsection
15 (b)(5) of Section 16-127, or being in receipt of a disability
16 or occupational disability benefit. This term does not
17 include any annuitant or member who previously accepted a
18 refund of survivor benefit contributions under paragraph (1)
19 of Section 16-142 unless the conditions specified in
20 subsection (b) of Section 16-143.2 are met.
21 (Source: P.A. 89-430, eff. 12-15-95.)
22 (40 ILCS 5/16-151) (from Ch. 108 1/2, par. 16-151)
23 Sec. 16-151. Refund. Upon termination of employment as a
24 teacher for any cause other than death or retirement, a
25 member shall be paid the following amount upon demand made at
26 least not previous to 4 months after ceasing to teach:
27 (1) from the Members' Contribution Reserve, the
28 actual total contributions paid by or on behalf of the
29 member for membership service which have not been
30 previously refunded and which are then credited to the
31 member's individual account in the Members' Contribution
32 Reserve, without interest thereon, and
33 (2) from the Employer's Contribution Reserve, the
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1 actual contributions not previously refunded, paid by or
2 on behalf of the member for prior service and towards the
3 cost of the automatic annual increase in retirement
4 annuity as provided under Section 16-152, without
5 interest thereon.
6 Any such amounts may be paid to the member either in one
7 sum or, at the election of the board, in 4 quarterly
8 payments.
9 Contributions credited to a member for periods of
10 disability as provided in Sections 16-149 and 16-149.1 are
11 not refundable.
12 Upon acceptance of a refund, all accrued rights and
13 credits in the System are forfeited and may be reinstated
14 only if the refund is repaid together with interest from the
15 date of the refund to the date of repayment at the following
16 rates compounded annually: for periods prior to July 1,
17 1965, regular interest; for periods from July 1, 1965 to June
18 30, 1977, 4% per year; for periods on and after July 1, 1977,
19 regular interest. Repayment shall be permitted upon return to
20 membership; however, service credit previously forfeited by a
21 refund and subsequently reinstated may not be used as a basis
22 for the payment of benefits, other than a refund of
23 contributions, prior to the completion of one year of
24 creditable service following the refund, except when
25 repayment is permitted under the provisions of the
26 "Retirement Systems Reciprocal Act" contained in Article 20.
27 (Source: P.A. 83-1440.)
28 (40 ILCS 5/16-155) (from Ch. 108 1/2, par. 16-155)
29 Sec. 16-155. Report to system and payment of deductions.
30 (a) The governing body of each school district shall
31 make two deposits each month. The deposit for member
32 contributions for salary paid between the first and the
33 fifteenth of the month is due by the 25th of the month. The
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1 deposit of member contributions for salary paid between the
2 sixteenth and last day of the month is due by the 10th of the
3 following month. All required contributions for salary
4 earned during a school term are due by July 10 next following
5 the close of such school term.
6 The governing body of each State institution coming under
7 this retirement system, the State Comptroller or other State
8 officer certifying payroll vouchers including payments of
9 salary or wages to teachers, and any other employer of
10 teachers, shall, monthly, forward to the secretary of the
11 retirement system the member contributions required under
12 this Article.
13 Each employer specified above shall, prior to August 15
14 of each year, forward to the System a detailed statement,
15 verified in all cases of school districts by the secretary or
16 clerk of the district, of the amounts so contributed since
17 the period covered by the last previous annual statement,
18 together with required contributions not yet forwarded, such
19 payments being payable to the System.
20 The board may prescribe rules governing the form,
21 content, investigation, control, and supervision of such
22 statements. The governing body of each school district
23 shall, at the same time, send a copy of the statement to the
24 regional superintendent of schools for the region in which
25 the district under its control is located. If no teacher in
26 a school district comes under the provisions of this Article,
27 the governing body of the district shall so state under the
28 oath of its secretary to this system, and shall at the same
29 time forward a copy of the statement to the regional
30 superintendent of schools.
31 (b) If the governing body of an employer that is not a
32 State agency a school district fails to forward such required
33 contributions within the time permitted in subsection (a)
34 above, the System shall notify the district of an additional
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1 amount due, equal to the greater of the following: (1) an
2 amount representing the interest lost by the system due to
3 late forwarding of contributions, calculated for the number
4 of days which the school district is late in forwarding
5 contributions at a rate of interest prescribed by the board,
6 based on its investment experience; or (2) $50.
7 (c) If the system, on August 15, is not in receipt of
8 the detailed statements required under this Section of any
9 school district or other employing unit, such school district
10 or other employing unit shall pay to the system an amount
11 equal to $250 for each day that elapses from August 15, until
12 the day such statement is filed with the system.
13 (Source: P.A. 86-273.)
14 (40 ILCS 5/16-158.1) (from Ch. 108 1/2, par. 16-158.1)
15 Sec. 16-158.1. Actions to enforce payments by school
16 districts and other employing units. Any school district or
17 other employing unit failing to transmit to the System
18 contributions required of it under this Article or
19 contributions required of teachers, for more than 90 days
20 after such contributions are due is subject to the following:
21 after giving notice to the district or other unit, the System
22 may certify to the State Comptroller or the Regional
23 Superintendent of Schools the amounts of such delinquent
24 payments and the State Comptroller or the Regional
25 Superintendent of Schools shall deduct the amounts so
26 certified or any part thereof from any grants of State funds
27 to be remitted to the school district or other employing unit
28 involved and shall pay the amount so deducted to the System.
29 If State funds from which such deductions may be made are not
30 available, the System may proceed against the school district
31 or other employing unit to recover the amounts of such
32 delinquent payments in the appropriate circuit court.
33 The System may provide for an audit of the records of a
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1 school district or other employing unit as may be required to
2 establish the amounts of required contributions. The school
3 district or other employing unit shall make its records
4 available to the System for the purpose of such audit. The
5 cost of such audit shall be added to the amount of the
6 delinquent payments and shall be recovered by the System from
7 the school district or other employing unit at the same time
8 and in the same manner as the delinquent payments are
9 recovered.
10 (Source: P.A. 85-1008.)
11 (40 ILCS 5/16-169.1 new)
12 Sec. 16-169.1. Testimony and the production of records.
13 The secretary of the Board shall have the power to issue
14 subpoenas to compel the attendance of witnesses and the
15 production of documents and records, including law
16 enforcement records maintained by law enforcement agencies,
17 in conjunction with a disability claim, administrative review
18 proceeding, or felony forfeiture investigation. The fees of
19 witnesses for attendance and travel shall be the same as the
20 fees of witnesses before the circuit courts of this State and
21 shall be paid by the party seeking the subpoena. The Board
22 may apply to any circuit court in the State for an order
23 requiring compliance with a subpoena issued under this
24 Section. Subpoenas issued under this Section shall be
25 subject to applicable provisions of the Code of Civil
26 Procedure.
27 (40 ILCS 5/16-179) (from Ch. 108 1/2, par. 16-179)
28 Sec. 16-179. To be trustee of reserves and to invest
29 funds. To be the trustee of the reserves created under this
30 Article, and to invest and reinvest such reserves, subject to
31 the requirements and restrictions set forth in Sections
32 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114 and 1-115.
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1 No bank or savings and loan association shall receive
2 investment funds as permitted by this Section, unless it has
3 complied with the requirements established pursuant to
4 Section 6 of "An Act relating to certain investments of
5 public funds by public agencies", approved July 23, 1943, as
6 now or hereafter amended. The limitations set forth in such
7 Section 6 shall be applicable only at the time of investment
8 and shall not require the liquidation of any investment at
9 any time.
10 The board shall have the authority to enter into such
11 agreements and to execute such documents as it determines to
12 be necessary to complete any investment transaction.
13 All investments shall be clearly held and accounted for
14 to indicate ownership by the system. The board may direct
15 the registration of securities or the holding in interests in
16 real property in the name of the system or in the name of a
17 nominee created for the express purpose of registration of
18 securities or holding interests in real property by a
19 national or state bank or trust company authorized to conduct
20 a trust business in the State of Illinois. The board may
21 hold title to interests in real property in the name of the
22 system or in the name of a title holding corporation created
23 for the express purpose of holding title to interests in real
24 property.
25 Investments shall be carried at cost or at a book value
26 determined in accordance with generally accepted accounting
27 principles. No adjustments shall be made in investment
28 carrying values for ordinary current market price
29 fluctuations; but reserves may be provided to account for
30 possible losses or unrealized gains.
31 The book value of investments held by the retirement
32 system in one or more commingled investment accounts shall be
33 the cost of its units of participation in such commingled
34 account or accounts.
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1 (Source: P.A. 86-272.)
2 (40 ILCS 5/16-181.3 new)
3 Sec. 16-181.3. To prescribe the manner of payment. To
4 prescribe by rule the manner of repaying refunds and
5 purchasing the various optional service credits permitted
6 under this Article. The rules may prescribe the conditions
7 under which installment payments or partial payments may be
8 accepted and may specify the method of computing any interest
9 due.
10 (40 ILCS 5/16-185) (from Ch. 108 1/2, par. 16-185)
11 Sec. 16-185. Employer's contribution reserve.
12 (a) The Employer's Contribution Reserve shall serve as a
13 clearing account for income and expenses of the System as
14 well as transfers to and from the other reserve accounts
15 established under this Article and adjustments thereto.
16 (b) This reserve shall be credited with:
17 (1) All amounts contributed by the State, except
18 those credited to other reserve accounts as provided in
19 this Article.
20 (2) The total member and employer contributions
21 except those required by other reserve accounts.
22 (3) The total income from invested assets of the
23 System, and other miscellaneous income.
24 (4) The interest portion of the accumulated
25 contributions of members granted refunds.
26 (5) Contributions made by annuitants to qualify for
27 automatic annual increases in annuity, except those
28 required by other reserve accounts.
29 (c) This reserve shall be charged with:
30 (1) All amounts necessary to be transferred to the
31 Members' Contribution Reserve.
32 (2) All retirement annuity, single-sum retirement
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1 benefit and disability retirement annuity payments,
2 including automatic annual increases in annuities, except
3 as provided by other reserve accounts.
4 (3) All amounts necessary to be refunded to
5 withdrawing members except as provided by the Members'
6 Contribution Reserve.
7 (4) All benefits paid to temporarily or
8 accidentally disabled members of this System, and all
9 amounts credited to the accounts of such disabled members
10 in lieu of contributions.
11 (5) All amounts payable as death benefits except as
12 provided by the Members' Contribution Reserve.
13 (6) All amounts necessary for the payment of costs
14 for the health insurance program as provided under this
15 Article.
16 (7) All survivor benefit contributions refunded to
17 an annuitant as provided under Section 16-143.2.
18 (8) All amounts paid in accordance with Section
19 16-131.1 except as provided by the Members' Contribution
20 Reserve.
21 (9) Interest to be credited to other reserve
22 accounts as specified in this Article.
23 (10) Recognition of unrealized gains or losses in
24 market value, upon adoption of generally accepted
25 accounting principles that allow for such recognition.
26 (Source: P.A. 88-593, eff. 8-22-94; 89-235, eff. 8-4-95.)
27 (40 ILCS 5/16-187) (from Ch. 108 1/2, par. 16-187)
28 Sec. 16-187. Custodian of fund - warrants and vouchers -
29 audits. (a) The State Treasurer is ex-officio custodian of
30 the funds of the retirement system. He or she may process
31 payments from the funds of the system for the purposes herein
32 specified upon warrants or direct deposit transmittals of the
33 State Comptroller. Commencing January 1, 1987, the State
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1 Treasurer shall credit interest, at current rates, for any
2 monies directly held. Such interest shall be calculated
3 using an average daily cash basis. He or she shall be liable
4 on the Treasurer's official bond for the proper performance
5 of duties and be held accountable for all cash and securities
6 in his or her custody. He or she shall keep books and
7 accounts in the manner prescribed by the board, and they
8 shall always be subject to the inspection of the board or any
9 member thereof.
10 (b) The State Comptroller may draw warrants or prepare
11 direct deposit transmittals payable from the fund upon the
12 State Treasurer for the purposes herein provided upon the
13 presentation of vouchers approved by the president and the
14 secretary of the board. The board shall file with the State
15 Comptroller an attested copy of a resolution designating such
16 persons as his authority for making payments upon such
17 vouchers.
18 (c) At the end of each fiscal year, the board shall have
19 the accounts and records of the system audited by a person
20 authorized to practice public accounting under the laws of
21 this state selected by the Auditor General. Copies of all
22 audits performed shall be filed with the State Board of
23 Education and the Auditor General.
24 (Source: P.A. 85-1008.)
25 (40 ILCS 5/17-134.1 new)
26 Sec. 17-134.1. Labor organization employees.
27 (a) A former teacher who is employed by a teacher or
28 labor organization and is not eligible to participate under
29 subdivision (4) of Section 17-134 because he or she is not on
30 a special leave of absence may elect to participate in the
31 Fund for the duration of that employment by so notifying the
32 Fund in writing. Participation shall be subject to the same
33 conditions as are applicable to persons participating under
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1 that subdivision (4), and service credit shall be contingent
2 upon the required contributions being received by the Fund.
3 (b) A person who participates in the Fund under
4 subsection (a) may establish service credit for periods of
5 such employment that took place before beginning
6 participation under this Section by submitting a written
7 application to the Fund. Credit shall be granted upon
8 payment to the Fund of an amount to be determined by the
9 Fund, equal to (i) the employee contributions that would have
10 been paid if the person had participated under subdivision
11 (4) of Section 17-134 during the period for which service
12 credit is to be established, based on the actual salary
13 received, plus (ii) the employer's normal cost associated
14 with that service credit, plus (iii) interest on items (i)
15 and (ii) at the rate of 6% per year, compounded annually,
16 from the date of the service established to the date of
17 payment. Service credit under this subsection shall not be
18 granted until the required contribution has been paid in
19 full; the contribution may be paid at any time before
20 retirement.
21 (c) A person who participates in the Fund under
22 subsection (a) may reestablish any service credits previously
23 forfeited by acceptance of a refund by paying to the Fund the
24 amount of the refund plus interest thereon at the rate of 5%
25 per annum, compounded annually, from the date of the refund
26 to the date of payment.
27 (d) Rollover contributions from other retirement plans
28 qualified under the Internal Revenue Code of 1986 may be used
29 to make the payments required under subsections (b) and (c).
30 (e) No service credit may be established under this
31 Section for any period of employment for which the person
32 receives service credit under any other provision of this
33 Code.
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1 Section 65. The State Salary and Annuity Withholding Act
2 is amended by changing Sections 2, 4, 8, and 9 as follows:
3 (5 ILCS 365/2) (from Ch. 127, par. 352)
4 Sec. 2. Definitions. As used in this Act, unless the
5 context otherwise requires:
6 "Office" means the State Comptroller, the Board of
7 Trustees of the State Universities Retirement System, or the
8 Board of Trustees of any of the following institutions: the
9 University of Illinois, the Board of Trustees of Southern
10 Illinois University, Chicago State University, Eastern
11 Illinois University, Governors State University, Illinois
12 State University, Northeastern Illinois University, Northern
13 Illinois University, and Western Illinois University the
14 Board of Governors of State Colleges and Universities and the
15 universities and colleges under its jurisdiction and the
16 Board of Regents and the universities under its jurisdiction.
17 "Department" means any department, board, commission,
18 institution, officer, court, or any agency of the State
19 government, other than the University of Illinois, Southern
20 Illinois University, Chicago State University, Eastern
21 Illinois University, Governors State University, Illinois
22 State University, Northeastern Illinois University, Northern
23 Illinois University, and Western Illinois University,
24 receiving State appropriations and having the power to
25 certify payrolls to the Comptroller authorizing payments of
26 salary or wages from such appropriations from any State fund
27 or from trust funds held by the State Treasurer; and the
28 Board of Trustees of the General Assembly Retirement System,
29 the Board of Trustees of the State Employees' Retirement
30 System of Illinois, and the Board of Trustees of the Judges
31 Retirement System of Illinois created respectively by
32 Articles 2, 14, and 18 of the "Illinois Pension Code.",
33 approved March 18, 1963, as heretofore amended;
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1 "Employee" means any regular officer or employee who
2 receives salary or wages for personal service rendered to the
3 State of Illinois and, for the purpose of deduction for the
4 purchase of United States Savings Bonds, includes any State
5 contractual employee.;
6 "Annuitant" means a person receiving a service retirement
7 annuity allowance or ordinary or accidental disability
8 benefits under Article 2, Article 14, 15, or Article 18 of
9 the "Illinois Pension Code.", approved March 18, 1963, as
10 heretofore and hereafter amended;
11 "Annuity" means the service retirement annuity allowance
12 or accidental disability benefits received by an annuitant.
13 (Source: P.A. 89-4, eff. 1-1-96; revised 2-7-97.)
14 (5 ILCS 365/4) (from Ch. 127, par. 354)
15 Sec. 4. Authorization of withholding. An employee or
16 annuitant may authorize the withholding of a portion of his
17 salary, wages, or annuity for any one or more of the
18 following purposes:
19 (1) for purchase of United States Savings Bonds;
20 (2) for payment of premiums on life or accident and
21 health insurance as defined in Section 4 of the "Illinois
22 Insurance Code", approved June 29, 1937, as amended, and for
23 payment of premiums on policies of automobile insurance as
24 defined in Section 143.13 of the "Illinois Insurance Code",
25 as amended, and the personal multiperil coverages commonly
26 known as homeowner's insurance. However, no portion of
27 salaries, wages or annuities may be withheld to pay premiums
28 on automobile, homeowner's, life or accident and health
29 insurance policies issued by any one insurance company or
30 insurance service company unless a minimum of 100 employees
31 or annuitants insured by that company authorize the
32 withholding by an Office within 6 months after such
33 withholding begins. If such minimum is not satisfied the
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1 Office may discontinue withholding for such company. For any
2 insurance company or insurance service company which has not
3 previously had withholding, the Office may allow withholding
4 for premiums, where less than 100 policies have been written,
5 to cover a probationary period. An insurance company which
6 has discontinued withholding may reinstate it upon
7 presentation of facts indicating new management or
8 re-organization satisfactory to the Office;
9 (3) for payment to any labor organization designated by
10 the employee;
11 (4) for payment of dues to any association the
12 membership of which consists of State employees and former
13 State employees;
14 (5) for deposit in any credit union, in which State
15 employees are within the field of membership as a result of
16 their employment;
17 (6) for payment to or for the benefit of an institution
18 of higher education by an employee of that institution;
19 (7) for payment of parking fees at the underground
20 facility located south of the William G. Stratton State
21 Office Building in Springfield, the parking ramp located at
22 401 South College Street, west of the William G. Stratton
23 State Office Building in Springfield, or at the parking
24 facilities located on the Urbana-Champaign campus of the
25 University of Illinois;.
26 (8) for voluntary payment to the State of Illinois of
27 amounts then due and payable to the State;.
28 (9) for investment purchases made as a participant in
29 College Savings Programs established pursuant to Section
30 30-15.8a of the School Code;.
31 (10) for voluntary payment to the Illinois Department of
32 Revenue of amounts due or to become due under the Illinois
33 Income Tax Act;
34 (11) for payment of optional contributions to a
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1 retirement system subject to the provisions of the Illinois
2 Pension Code.
3 (Source: P.A. 88-161.)
4 (5 ILCS 365/8) (from Ch. 127, par. 358)
5 Sec. 8. Payment of certain amounts withheld.
6 (a) If a withholding authorization is for the purpose of
7 payment of insurance premiums or for payment to a labor
8 union, each Office shall make payments, as soon as payroll
9 warrants are prepared and verified, on behalf of the employee
10 or annuitant to the payee named in the authorization the
11 amount specified in the authorization. Such payments shall
12 be made by warrants prepared at the time the payroll is
13 processed.
14 (b) If a withholding authorization is for the purpose of
15 purchasing United States Savings Bonds, each Office, whenever
16 a sufficient sum has accumulated in the employee's account to
17 purchase a bond of the denomination directed by the employee
18 in his authorization, shall purchase such a United States
19 Savings Bond in the name designated by the employee and
20 deliver it to the employee.
21 (c) If a withholding authorization is for the purpose of
22 payment of parking fees pursuant to paragraph 7 of Section 4,
23 the State Comptroller shall deposit 80% of the amount
24 withheld in the Capital Development Bond Retirement and
25 Interest Fund in the State Treasury and 20% of the amount
26 withheld in the State Parking Facility Maintenance Fund in
27 the State Treasury.
28 (d) If a withholding authorization is for the purpose of
29 payment of amounts due or to become due under the Illinois
30 Income Tax Act, the Office shall pay the amounts withheld
31 without delay directly to the Department of Revenue or to a
32 depositary designated by the Department of Revenue.
33 (Source: P.A. 83-619.)
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1 (5 ILCS 365/9) (from Ch. 127, par. 359)
2 Sec. 9. Any authorization to withhold from the salary,
3 wages or annuity of an employee or annuitant shall terminate
4 and such withholding shall cease upon the happening of any of
5 the following events:
6 (1) termination of employment or termination of payment
7 of an annuity, as the case may be;
8 (2) written notice by the employee or annuitant of
9 cancellation of such former authorization, except that an
10 authorization to withhold for the payment of optional
11 contributions to a retirement system through an employer
12 pickup is irrevocable;
13 (3) expiration of the time during which such withholding
14 was authorized;
15 (4) when the total amount authorized to be withheld has
16 been so withheld.
17 Upon termination of authorization to purchase United
18 States Savings Bonds, any amount withheld from the salary or
19 wages of an employee for such purpose and which has not been
20 so used shall be immediately remitted by each Office to the
21 person from whose salary or wages such amount was withheld.
22 (Source: Laws 1965, p. 1244.)
23 Section 70. The Illinois Income Tax Act is amended by
24 changing Section 804 as follows:
25 (35 ILCS 5/804) (from Ch. 120, par. 8-804)
26 Sec. 804. Failure to Pay Estimated Tax.
27 (a) In general. In case of any underpayment of estimated
28 tax by a taxpayer, except as provided in subsection (d) or
29 (e), the taxpayer shall be liable to a penalty in an amount
30 determined at the rate prescribed by Section 3-3 of the
31 Uniform Penalty and Interest Act upon the amount of the
32 underpayment (determined under subsection (b)) for each
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1 required installment.
2 (b) Amount of underpayment. For purposes of subsection
3 (a), the amount of the underpayment shall be the excess of:
4 (1) the amount of the installment which would be
5 required to be paid under subsection (c), over
6 (2) the amount, if any, of the installment paid on
7 or before the last date prescribed for payment.
8 (c) Amount of Required Installments.
9 (1) Amount.
10 (A) In General. Except as provided in
11 paragraph (2), the amount of any required
12 installment shall be 25% of the required annual
13 payment.
14 (B) Required Annual Payment. For purposes of
15 subparagraph (A), the term "required annual payment"
16 means the lesser of
17 (i) 90% of the tax shown on the return
18 for the taxable year, or if no return is filed,
19 90% of the tax for such year, or
20 (ii) 100% of the tax shown on the return
21 of the taxpayer for the preceding taxable year
22 if a return showing a liability for tax was
23 filed by the taxpayer for the preceding taxable
24 year and such preceding year was a taxable year
25 of 12 months.
26 (2) Lower Required Installment where Annualized
27 Income Installment is Less Than Amount Determined Under
28 Paragraph (1).
29 (A) In General. In the case of any required
30 installment if a taxpayer establishes that the
31 annualized income installment is less than the
32 amount determined under paragraph (1),
33 (i) the amount of such required
34 installment shall be the annualized income
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1 installment, and
2 (ii) any reduction in a required
3 installment resulting from the application of
4 this subparagraph shall be recaptured by
5 increasing the amount of the next required
6 installment determined under paragraph (1) by
7 the amount of such reduction, and by increasing
8 subsequent required installments to the extent
9 that the reduction has not previously been
10 recaptured under this clause.
11 (B) Determination of Annualized Income
12 Installment. In the case of any required
13 installment, the annualized income installment is
14 the excess, if any, of
15 (i) an amount equal to the applicable
16 percentage of the tax for the taxable year
17 computed by placing on an annualized basis the
18 net income for months in the taxable year
19 ending before the due date for the installment,
20 over
21 (ii) the aggregate amount of any prior
22 required installments for the taxable year.
23 (C) Applicable Percentage.
24 In the case of the following The applicable
25 required installments: percentage is:
26 1st ............................... 22.5%
27 2nd ............................... 45%
28 3rd ............................... 67.5%
29 4th ............................... 90%
30 (D) Annualized Net Income; Individuals. For
31 individuals, net income shall be placed on an
32 annualized basis by:
33 (i) multiplying by 12, or in the case of
34 a taxable year of less than 12 months, by the
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1 number of months in the taxable year, the net
2 income computed without regard to the standard
3 exemption for the months in the taxable year
4 ending before the month in which the
5 installment is required to be paid;
6 (ii) dividing the resulting amount by the
7 number of months in the taxable year ending
8 before the month in which such installment date
9 falls; and
10 (iii) deducting from such amount the
11 standard exemption allowable for the taxable
12 year, such standard exemption being determined
13 as of the last date prescribed for payment of
14 the installment.
15 (E) Annualized Net Income; Corporations. For
16 corporations, net income shall be placed on an
17 annualized basis by multiplying by 12 the taxable
18 income
19 (i) for the first 3 months of the taxable
20 year, in the case of the installment required
21 to be paid in the 4th month,
22 (ii) for the first 3 months or for the
23 first 5 months of the taxable year, in the case
24 of the installment required to be paid in the
25 6th month,
26 (iii) for the first 6 months or for the
27 first 8 months of the taxable year, in the case
28 of the installment required to be paid in the
29 9th month, and
30 (iv) for the first 9 months or for the
31 first 11 months of the taxable year, in the
32 case of the installment required to be paid in
33 the 12th month of the taxable year,
34 then dividing the resulting amount by the number of
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1 months in the taxable year (3, 5, 6, 8, 9, or 11 as
2 the case may be).
3 (d) Exceptions. Notwithstanding the provisions of the
4 preceding subsections, the penalty imposed by subsection (a)
5 shall not be imposed if the taxpayer was not required to file
6 an Illinois income tax return for the preceding taxable year,
7 or if the taxpayer has underpaid taxes solely because of the
8 increased rate in effect during the period from July 1, 1989
9 through December 1989, or, for individuals, if the taxpayer
10 had no tax liability for the preceding taxable year and such
11 year was a taxable year of 12 months.
12 (e) The penalty imposed for underpayment of estimated
13 tax by subsection (a) of this Section shall not be imposed to
14 the extent that the Department or his designate determines,
15 pursuant to Section 3-8 of the Uniform Penalty and Interest
16 Act that the penalty should not be imposed.
17 (f) Definition of tax. For purposes of subsections (b)
18 and (c), the term "tax" means the excess of the tax imposed
19 under Article 2 of this Act, over the amounts credited
20 against such tax under Sections 601(b) (3) and (4).
21 (g) Application of Section in case of tax withheld on
22 compensation. For purposes of applying this Section in the
23 case of an individual, tax withheld under Article 7 for the
24 taxable year shall be deemed a payment of estimated tax, and
25 an equal part of such amount shall be deemed paid on each
26 installment date for such taxable year, unless the taxpayer
27 establishes the dates on which all amounts were actually
28 withheld, in which case the amounts so withheld shall be
29 deemed payments of estimated tax on the dates on which such
30 amounts were actually withheld.
31 (g-5) Amounts withheld under the State Salary and
32 Annuity Withholding Act. An individual who has amounts
33 withheld under paragraph (10) of Section 4 of the State
34 Salary and Annuity Withholding Act may elect to have those
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1 amounts treated as payments of estimated tax made on the
2 dates on which those amounts are actually withheld.
3 (i) Short taxable year. The application of this Section
4 to taxable years of less than 12 months shall be in
5 accordance with regulations prescribed by the Department.
6 The changes in this Section made by Public Act 84-127
7 shall apply to taxable years ending on or after January 1,
8 1986.
9 (Source: P.A. 86-678; 86-953; 86-1028; 87-205.)
10 Section 75. The Illinois Pension Code is amended by
11 changing Sections 2-123, 2-126.1, 14-103.05, 14-108, 14-130,
12 14-133, 14-133.1, 15-157, 15-157.1, 15-185, 18-133.1, 21-103,
13 21-109, and 21-115 as follows:
14 (40 ILCS 5/2-123) (from Ch. 108 1/2, par. 2-123)
15 Sec. 2-123. Refunds.
16 (a) A participant who ceases to be a member, other than
17 an annuitant, shall, upon written request, receive a refund
18 of his or her total contributions, without interest. The
19 refund shall include the additional contributions for the
20 automatic increase in retirement annuity. By accepting the
21 refund, a participant forfeits all accrued rights and
22 benefits in the System and loses credit for all service.
23 However, if he or she again becomes a member, he or she may
24 resume status as a participant and reestablish any forfeited
25 service credit by paying to the System the full amount
26 refunded, together with interest at 4% per annum from the
27 time the refund is paid to the date the member again becomes
28 a participant.
29 A former member of the General Assembly may reestablish
30 any service credit forfeited by acceptance of a refund by
31 paying to the System on or before February 1, 1993, the full
32 amount refunded, together with interest at 4% per annum from
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1 the date of payment of the refund to the date of repayment.
2 When a member or former member owes money to the System,
3 interest at the rate of 4% per annum shall accrue and be
4 payable on such amounts owed beginning on the date of
5 termination of service as a member until the contributions
6 due have been paid in full.
7 (b) A participant who has no eligible survivor upon
8 becoming an annuitant or who terminates service with less
9 than 8 years of service is entitled to a refund of the
10 contributions for a survivor's annuity, without interest. If
11 such person later marries, a survivor's annuity shall not be
12 payable upon his or her death, unless the amount of such
13 refund is repaid to the System, together with interest at the
14 rate of 4% per year from the date of refund to the date of
15 repayment.
16 (c) If at the date of retirement or death of a
17 participant who served as an officer of the General Assembly,
18 the total period of such service is less than 4 years, the
19 additional contributions made by such member on the
20 additional salary as an officer shall be refunded unless the
21 participant served as an officer for at least 2 years and has
22 contributed the amount he or she would have contributed if he
23 or she had served as an officer for 4 years as provided in
24 Section 2-126.
25 (d) Upon the termination of the last survivor's annuity
26 payable to a survivor of a deceased participant, the excess,
27 if any, of the total contributions made by the participant
28 for retirement and survivor's annuity, without interest, over
29 the total amount of retirement and survivor's annuity
30 payments received by the participant and the participant's
31 survivors shall be refunded upon request:
32 (i) if there was a surviving spouse of the deceased
33 participant who was eligible for a survivor's annuity, to
34 the designated beneficiary of that spouse or, if the
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1 designated beneficiary is deceased or there is no
2 designated beneficiary, to that spouse's estate;
3 (ii) if there was no eligible surviving spouse of
4 the deceased participant, to the designated beneficiary
5 of the deceased participant or, if the designated
6 beneficiary is deceased or there is no designated
7 beneficiary, to the deceased participant's estate.
8 Upon death of the last survivor of a participant and his
9 or her spouse, a death benefit shall be payable consisting of
10 the excess, if any, of the contributions made by the
11 participant for retirement and survivor's annuity, without
12 interest, over the total amount of retirement and survivor's
13 annuity payments made by the System.
14 (e) Upon the death of a participant, if a survivor's
15 annuity is not payable under this Article, a beneficiary
16 designated by the participant shall be entitled to a refund
17 of all contributions made by the participant. If the
18 participant has not designated a refund beneficiary, the
19 surviving spouse shall be entitled to the refund of
20 contributions; if there is no surviving spouse, the
21 contributions shall be refunded to the participant's
22 surviving children, if any, and if no children survive, the
23 refund payment shall be made to the participant's estate.
24 (Source: P.A. 86-273; 87-1265.)
25 (40 ILCS 5/2-126.1) (from Ch. 108 1/2, par. 2-126.1)
26 Sec. 2-126.1. Pickup Pick up of contributions.
27 (a) The State shall pick up the participant
28 contributions required under Section 2-126 for all salary
29 earned after December 31, 1981. The contributions so picked
30 up shall be treated as employer contributions in determining
31 tax treatment under the United States Internal Revenue Code.
32 The State shall pay these participant contributions from the
33 same source of funds which is used in paying salary to the
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1 participant. The State may pick up these contributions by a
2 reduction in the cash salary of the participant. If
3 participant contributions are picked up they shall be treated
4 for all purposes of this Article 2 in the same manner as
5 participant contributions that were made prior to the date
6 that the pick up of contributions began.
7 (b) Subject to the requirements of federal law, a
8 participant may elect to have the employer pick up optional
9 contributions that the participant has elected to pay to the
10 System, and the contributions so picked up shall be treated
11 as employer contributions for the purposes of determining
12 federal tax treatment. The employer shall pick up the
13 contributions by a reduction in the cash salary of the
14 participant and shall pay the contributions from the same
15 fund that is used to pay earnings to the participant. The
16 election to have optional contributions picked up is
17 irrevocable and the optional contributions may not thereafter
18 be prepaid, by direct payment or otherwise.
19 (Source: P.A. 83-1440.)
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 5/14-108) (from Ch. 108 1/2, par. 14-108)
8 (Text of Section before amendment by P.A. 89-507)
9 Sec. 14-108. Amount of retirement annuity. A member who
10 has contributed to the System for at least 12 months, shall
11 be entitled to a prior service annuity for each year of
12 certified prior service credited to him, except that a member
13 shall receive 1/3 of the prior service annuity for each year
14 of service for which contributions have been made and all of
15 such annuity shall be payable after the member has made
16 contributions for a period of 3 years. Proportionate amounts
17 shall be payable for service of less than a full year after
18 completion of at least 12 months.
19 The total period of service to be considered in
20 establishing the measure of prior service annuity shall
21 include service credited in the Teachers' Retirement System
22 of the State of Illinois and the State Universities
23 Retirement System for which contributions have been made by
24 the member to such systems; provided that at least 1 year of
25 the total period of 3 years prescribed for the allowance of a
26 full measure of prior service annuity shall consist of
27 membership service in this system for which credit has been
28 granted.
29 (a) In the case of a member who is a noncovered
30 employee, the retirement annuity for membership service and
31 prior service shall be 1.67% of final average compensation
32 for each of the first 10 years of service; 1.90% for each of
33 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 Mental Health and
19 Developmental Disabilities shall be 1.9% of final average
20 compensation for each of the first 10 years of service; 2.1%
21 for each of the next 10 years of service; 2.25% for each year
22 of service in excess of 20 but not exceeding 30; and 2.5% for
23 each year in excess of 30.
24 (h) In the case of a covered employee, the retirement
25 annuity for membership service as a full-time security
26 employee of the Department of Corrections or security
27 employee of the Department of Mental Health and Developmental
28 Disabilities shall be 1.67% of final average compensation for
29 each of the first 10 years of service; 1.90% for each of the
30 next 10 years of service; 2.10% for each year of service in
31 excess of 20 but not exceeding 30; and 2.30% for each year in
32 excess of 30.
33 (i) For the purposes of this Section and Section 14-133
34 of this Act, the term "security employee of the Department of
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1 Corrections" and the term "security employee of the
2 Department of Mental Health and Developmental Disabilities"
3 shall have the meanings ascribed to them in subsection (c) of
4 Section 14-110.
5 (j) The retirement annuity computed pursuant to
6 paragraphs (g) or (h) shall be applicable only to those
7 security employees of the Department of Corrections and
8 security employees of the Department of Mental Health and
9 Developmental Disabilities who have at least 20 years of
10 membership service and who are not eligible for the
11 alternative retirement annuity provided under Section 14-110.
12 However, persons transferring to this System under Section
13 14-108.2 who have service credit under Article 16 of this
14 Code may count such service toward establishing their
15 eligibility under the 20-year service requirement of this
16 subsection; but such service may be used only for
17 establishing such eligibility, and not for the purpose of
18 increasing or calculating any benefit.
19 (k) In the case of a member who has at least 10 years of
20 creditable service as a court reporter, the retirement
21 annuity for service as a court reporter shall be 2.2% of
22 final average compensation for each year of such service as a
23 noncovered employee, and 1.5% of final average compensation
24 for each year of such service as a covered employee.
25 (Source: P.A. 86-272; 86-273; 86-1028.)
26 (Text of Section after amendment by P.A. 89-507)
27 Sec. 14-108. Amount of retirement annuity. A member who
28 has contributed to the System for at least 12 months, shall
29 be entitled to a prior service annuity for each year of
30 certified prior service credited to him, except that a member
31 shall receive 1/3 of the prior service annuity for each year
32 of service for which contributions have been made and all of
33 such annuity shall be payable after the member has made
34 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 Human Services
2 shall be 1.9% of final average compensation for each of the
3 first 10 years of service; 2.1% for each of the next 10 years
4 of service; 2.25% for each year of service in excess of 20
5 but not exceeding 30; and 2.5% for each year in excess of 30.
6 (h) In the case of a covered employee, the retirement
7 annuity for membership service as a full-time security
8 employee of the Department of Corrections or security
9 employee of the Department of Human Services shall be 1.67%
10 of final average compensation for each of the first 10 years
11 of service; 1.90% for each of the next 10 years of service;
12 2.10% for each year of service in excess of 20 but not
13 exceeding 30; and 2.30% for each year in excess of 30.
14 (i) For the purposes of this Section and Section 14-133
15 of this Act, the term "security employee of the Department of
16 Corrections" and the term "security employee of the
17 Department of Human Services" shall have the meanings
18 ascribed to them in subsection (c) of Section 14-110.
19 (j) The retirement annuity computed pursuant to
20 paragraphs (g) or (h) shall be applicable only to those
21 security employees of the Department of Corrections and
22 security employees of the Department of Human Services who
23 have at least 20 years of membership service and who are not
24 eligible for the alternative retirement annuity provided
25 under Section 14-110. However, persons transferring to this
26 System under Section 14-108.2 who have service credit under
27 Article 16 of this Code may count such service toward
28 establishing their eligibility under the 20-year service
29 requirement of this subsection; but such service may be used
30 only for establishing such eligibility, and not for the
31 purpose of increasing or calculating any benefit.
32 (k) In the case of a member who has at least 10 years of
33 creditable service as a court reporter, the retirement
34 annuity for service as a court reporter shall be 2.2% of
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1 final average compensation for each year of such service as a
2 noncovered employee, and 1.5% of final average compensation
3 for each year of such service as a covered employee.
4 (Source: P.A. 89-507, eff. 7-1-97.)
5 (40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
6 Sec. 14-130. Refunds; rules.
7 (a) Upon withdrawal a member is entitled to receive,
8 upon written request, a refund of the member's contributions,
9 including credits granted while in receipt of disability
10 benefits, without credited interest. The board, in its
11 discretion may withhold payment of the refund of a member's
12 contributions for a period not to exceed 1 year after the
13 member has ceased to be an employee.
14 For purposes of this Section, a member will be considered
15 to have withdrawn from service if a change in, or transfer
16 of, his position results in his becoming ineligible for
17 continued membership in this System and eligible for
18 membership in another public retirement system under this
19 Act.
20 (b) A member receiving a refund forfeits and
21 relinquishes all accrued rights in the System, including all
22 accumulated creditable service. If the person again becomes
23 a member of the System and establishes at least 2 years of
24 creditable service, the member may repay the moneys
25 previously refunded. However, a former member may restore
26 credits previously forfeited by acceptance of a refund
27 without returning to service by applying in writing and
28 repaying to the System, by April 1, 1993, the amount of the
29 refund plus regular interest calculated from the date of
30 refund to the date of repayment.
31 The repayment of refunds issued prior to January 1, 1984
32 shall consist of the amount refunded plus 5% interest per
33 annum compounded annually for the period from the date of the
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1 refund to the end of the month in which repayment is made.
2 The repayment of refunds issued after January 1, 1984 shall
3 consist of the amount refunded plus regular interest for the
4 period from the date of refund to the end of the month in
5 which repayment is made. However, in the case of a refund
6 that is repaid in a lump sum between January 1, 1991 and July
7 1, 1991, repayment shall consist of the amount refunded plus
8 interest at the rate of 2.5% per annum compounded annually
9 from the date of the refund to the end of the month in which
10 repayment is made.
11 Upon repayment, the member shall receive credit for the
12 service, member contributions and regular interest that was
13 forfeited by acceptance of the refund as well as regular
14 interest for the period of non-membership. Such repayment
15 shall be made in full before retirement either in a lump sum
16 or in installment payments in accordance with such rules as
17 may be adopted by the board.
18 (b-5) The Board may adopt rules governing the repayment
19 of refunds and establishment of credits in cases involving
20 awards of back pay or reinstatement. The rules may authorize
21 repayment of a refund in installment payments and may waive
22 the payment of interest on refund amounts repaid in full
23 within a specified period.
24 (c) A member who is unmarried on the date of retirement
25 or who does not have an eligible survivors annuity
26 beneficiary at that date is entitled to a refund of
27 contributions for widow's annuity or survivors annuity
28 purposes, or both, as the case may be, without interest.
29 (d) Any member who has service credit in any position
30 for which an alternative retirement annuity is provided and
31 in relation to which an increase in the rate of employee
32 contribution is required, shall be entitled to a refund,
33 without interest, of that part of the member's employee
34 contribution which results from that increase in the employee
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1 rate if the member does not qualify for that alternative
2 retirement annuity at the time of retirement.
3 (Source: P.A. 86-1488; 87-1265.)
4 (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
5 (Text of Section before amendment by P.A. 89-507)
6 Sec. 14-133. Contributions on behalf of members.
7 (a) Each participating employee shall make contributions
8 to the System, based on the employee's compensation, as
9 follows:
10 (1) Covered employees, except as indicated below,
11 3.5% 3 1/2% for retirement annuity, and 0.5% 1/2 of 1%
12 for a widow or survivors annuity;
13 (2) Noncovered employees, except as indicated
14 below, 7% for retirement annuity and 1% for a widow or
15 survivors annuity;
16 (3) Noncovered employees serving in a position in
17 which "eligible creditable service" as defined in Section
18 14-110 may be earned, 8.5% 8 1/2% for retirement annuity
19 and 1% for a widow or survivors annuity;
20 (4) Covered employees serving in a position in
21 which "eligible creditable service" as defined in Section
22 14-110 may be earned, 5% for retirement annuity and 0.5%
23 for a widow or survivors annuity;
24 (5) Each full-time security employee of the
25 Department of Corrections or of the Department of Mental
26 Health and Developmental Disabilities who is a covered
27 employee, 5% for retirement annuity and 0.5% 1/2 of 1%
28 for a widow or survivors annuity;
29 (6) Each full-time security employee of the
30 Department of Corrections or of the Department of Mental
31 Health and Developmental Disabilities who is not a
32 covered employee, 8.5% 8 1/2% for retirement annuity and
33 1% for a widow or survivors annuity.
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1 (b) Contributions shall be in the form of a deduction
2 from compensation and shall be made notwithstanding that the
3 compensation paid in cash to the employee shall be reduced
4 thereby below the minimum prescribed by law or regulation.
5 Each member is deemed to consent and agree to the deductions
6 from compensation provided for in this Article, and shall
7 receipt in full for salary or compensation.
8 (Source: P.A. 86-273.)
9 (Text of Section after amendment by P.A. 89-507)
10 Sec. 14-133. Contributions on behalf of members.
11 (a) Each participating employee shall make contributions
12 to the System, based on the employee's compensation, as
13 follows:
14 (1) Covered employees, except as indicated below,
15 3.5% 3 1/2% for retirement annuity, and 0.5% 1/2 of 1%
16 for a widow or survivors annuity;
17 (2) Noncovered employees, except as indicated
18 below, 7% for retirement annuity and 1% for a widow or
19 survivors annuity;
20 (3) Noncovered employees serving in a position in
21 which "eligible creditable service" as defined in Section
22 14-110 may be earned, 8.5% 8 1/2% for retirement annuity
23 and 1% for a widow or survivors annuity;
24 (4) Covered employees serving in a position in
25 which "eligible creditable service" as defined in Section
26 14-110 may be earned, 5% for retirement annuity and 0.5%
27 for a widow or survivors annuity;
28 (5) Each full-time security employee of the
29 Department of Corrections or of the Department of Human
30 Services who is a covered employee, 5% for retirement
31 annuity and 0.5% 1/2 of 1% for a widow or survivors
32 annuity;
33 (6) Each full-time security employee of the
34 Department of Corrections or of the Department of Human
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1 Services who is not a covered employee, 8.5% 8 1/2% for
2 retirement annuity and 1% for a widow or survivors
3 annuity.
4 (b) Contributions shall be in the form of a deduction
5 from compensation and shall be made notwithstanding that the
6 compensation paid in cash to the employee shall be reduced
7 thereby below the minimum prescribed by law or regulation.
8 Each member is deemed to consent and agree to the deductions
9 from compensation provided for in this Article, and shall
10 receipt in full for salary or compensation.
11 (Source: P.A. 89-507, eff. 7-1-97.)
12 (40 ILCS 5/14-133.1) (from Ch. 108 1/2, par. 14-133.1)
13 Sec. 14-133.1. Pickup of contributions.
14 (a) Each department shall pick up the employee
15 contributions required by Section 14-133 for all compensation
16 earned after December 31, 1981, and the contributions so
17 picked up shall be treated as employer contributions in
18 determining tax treatment under the United States Internal
19 Revenue Code; however, each department shall continue to
20 withhold federal and State income taxes based upon these
21 contributions until the Internal Revenue Service or the
22 federal courts rule that pursuant to Section 414(h) of the
23 United States Internal Revenue Code, these contributions
24 shall not be included as gross income of the employee until
25 such time as they are distributed or made available.
26 The department shall pay these employee contributions
27 from the same fund which is used in paying earnings to the
28 employee. The department may pick up these contributions by
29 a reduction in the cash salary of the employee or by an
30 offset against a future salary increase or by a combination
31 of a reduction in salary and offset against a future salary
32 increase. If employee contributions are picked up they shall
33 be treated for all purposes of this Article 14 in the same
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1 manner and to the same extent as employee contributions made
2 prior to the date picked up.
3 (b) Subject to the requirements of federal law, an
4 employee of a department may elect to have the department
5 pick up optional contributions that the employee has elected
6 to pay to the System, and the contributions so picked up
7 shall be treated as employer contributions for the purposes
8 of determining federal tax treatment. The department shall
9 pick up the contributions by a reduction in the cash salary
10 of the employee and shall pay the contributions from the same
11 fund that is used to pay earnings to the employee. The
12 election to have optional contributions picked up is
13 irrevocable and the optional contributions may not thereafter
14 be prepaid, by direct payment or otherwise.
15 (Source: P.A. 87-14.)
16 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
17 Sec. 15-157. Employee Contributions.
18 (a) Each participating employee shall make contributions
19 towards the retirement annuity of each payment of earnings
20 applicable to employment under this system on and after the
21 date of becoming a participant as follows: Prior to
22 September 1, 1949, 3 1/2% of earnings; from September 1, 1949
23 to August 31, 1955, 5%; from September 1, 1955 to August 31,
24 1969, 6%; from September 1, 1969, 6 1/2%. These
25 contributions are to be considered as normal contributions
26 for purposes of this Article.
27 Each participant who is a police officer or firefighter
28 shall make normal contributions of 8% of each payment of
29 earnings applicable to employment as a police officer or
30 firefighter under this system on or after September 1, 1981,
31 unless he or she files with the board within 60 days after
32 the effective date of this amendatory Act of 1991 or 60 days
33 after the board receives notice that he or she is employed as
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1 a police officer or firefighter, whichever is later, a
2 written notice waiving the retirement formula provided by
3 Rule 4 of Section 15-136. This waiver shall be irrevocable.
4 If a participant had met the conditions set forth in Section
5 15-132.1 prior to the effective date of this amendatory Act
6 of 1991 but failed to make the additional normal
7 contributions required by this paragraph, he or she may elect
8 to pay the additional contributions plus compound interest at
9 the effective rate. If such payment is received by the
10 board, the service shall be considered as police officer
11 service in calculating the retirement annuity under Rule 4 of
12 Section 15-136.
13 (b) Starting September 1, 1969, each participating
14 employee shall make additional contributions of 1/2 of 1% of
15 earnings to finance a portion of the cost of the annual
16 increases in retirement annuity provided under Section
17 15-136.
18 (c) Each participating employee shall make survivors
19 insurance contributions of 1% of earnings applicable under
20 this system on and after August 1, 1959. Contributions in
21 excess of $80 during any fiscal year beginning August 31,
22 1969 and in excess of $120 during any fiscal year thereafter
23 until September 1, 1971 shall be considered as additional
24 contributions for purposes of this Article.
25 (d) If the board by board rule so permits and subject to
26 such conditions and limitations as may be specified in its
27 rules, a participant may make other additional contributions
28 of such percentage of earnings or amounts as the participant
29 shall elect in a written notice thereof received by the
30 board.
31 (e) That fraction of a participant's total accumulated
32 normal contributions, the numerator of which is equal to the
33 number of years of service in excess of that which is
34 required to qualify for the maximum retirement annuity, and
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1 the denominator of which is equal to the total service of the
2 participant, shall be considered as accumulated additional
3 contributions. The determination of the applicable maximum
4 annuity and the adjustment in contributions required by this
5 provision shall be made as of the date of the participant's
6 retirement.
7 (f) Notwithstanding the foregoing, a participating
8 employee shall not be required to make contributions under
9 this Section after the date upon which continuance of such
10 contributions would otherwise cause his or her retirement
11 annuity to exceed the maximum retirement annuity as specified
12 in clause (1) of subsection (c) of Section 15-136.
13 (g) A participating employee may make contributions for
14 the purchase of service credit under this Article.
15 (Source: P.A. 86-272; 86-1488.)
16 (40 ILCS 5/15-157.1) (from Ch. 108 1/2, par. 15-157.1)
17 Sec. 15-157.1. Pickup Pick up of employee contributions.
18 (a) Each employer shall pick up the employee
19 contributions required under subsections (a), (b), and (c) of
20 Section 15-157 for all earnings payments made on and after
21 January 1, 1981, and the contributions so picked up shall be
22 treated as employer contributions in determining tax
23 treatment under the United States Internal Revenue Code.
24 These contributions shall not be included as gross income of
25 the participant until such time as they are distributed or
26 made available. The employer shall pay these employee
27 contributions from the same source of funds which is used in
28 paying earnings to the employee. The employer may pick up
29 these contributions by a reduction in the cash salary of the
30 participants, or by an offset against a future salary
31 increase, or by a combination of a reduction in salary and
32 offset against a future salary increase.
33 (b) Subject to the requirements of federal law, a
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1 participating employee may elect to have the employer pick up
2 optional contributions that the participant has elected to
3 pay to the System under Section 15-157(g), and the
4 contributions so picked up shall be treated as employer
5 contributions for the purposes of determining federal tax
6 treatment under the federal Internal Revenue Code of 1986.
7 These contributions shall not be included as gross income of
8 the participant until such time as they are distributed or
9 made available. The employer shall pick up the contributions
10 by a reduction in the cash salary of the participant and
11 shall pay the contributions from the same source of funds
12 that is used to pay earnings to the participant. The
13 election to have optional contributions picked up is
14 irrevocable.
15 (Source: P.A. 83-1440.)
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 5/18-133.1) (from Ch. 108 1/2, par. 18-133.1)
20 Sec. 18-133.1. Pickup Pick up of contributions.
21 (a) Each employer may pick up the participant
22 contributions required under Section 18-133 for all salary
23 earned after December 31, 1981. If an employer decides not
24 to pick up the contributions, the employee contributions
25 shall continue to be deducted from salary. If contributions
26 are picked up they shall be treated as employer contributions
27 in determining tax treatment under the United States Internal
28 Revenue Code. However, the employer shall continue to
29 withhold Federal and State income taxes based upon these
30 contributions until the Internal Revenue Service or the
31 Federal courts rule that pursuant to Section 414(h) of the
32 United States Internal Revenue Code, these contributions
33 shall not be included as gross income of the participant
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1 until such time as they are distributed or made available.
2 The employer shall pay these participant contributions from
3 the same source of funds which is used in paying earnings to
4 the participant. The employer may pick up these
5 contributions by a reduction in the cash salary of the
6 participant or by an offset against a future salary increase
7 or by a combination of a reduction in salary and offset
8 against a future salary increase. If participant
9 contributions are picked up they shall be treated for all
10 purposes of this Article as participant contributions were
11 considered prior to the time they were picked up.
12 (b) Subject to the requirements of federal law, a
13 participant may elect to have the employer pick up optional
14 contributions that the participant has elected to pay to the
15 System, and the contributions so picked up shall be treated
16 as employer contributions for the purposes of determining
17 federal tax treatment. The employer shall pick up the
18 contributions by a reduction in the cash salary of the
19 participant and shall pay the contributions from the same
20 fund that is used to pay earnings to the participant. The
21 election to have optional contributions picked up is
22 irrevocable and the optional contributions may not thereafter
23 be prepaid, by direct payment or otherwise.
24 (Source: P.A. 83-1440.)
25 (40 ILCS 5/21-103) (from Ch. 108 1/2, par. 21-103)
26 Sec. 21-103. Political subdivision - election of
27 coverage.
28 (a) Any political subdivision other than a school
29 district and other than a political subdivision which is
30 participating in the Illinois Municipal Retirement Fund under
31 Article 7 of this Code may, by resolution of the governing
32 body (in the case of a township, at an annual town meeting or
33 at a special town meeting called for that purpose), or by
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1 referendum, elect to have its employees covered by the Social
2 Security Act.
3 Whenever a petition requesting Social Security coverage
4 for employees, signed by not less than 5% of the legal voters
5 of the political subdivision, is presented to the governing
6 body, such governing body shall cause such proposition to be
7 certified to the proper election officials who shall submit
8 the proposition to the voters at the next appropriate
9 election in accordance with the general election law, or in
10 the case of a township at the next annual town meeting if the
11 petition is received more than 15 and less than 60 days
12 before the annual town meeting, or else at a special town
13 meeting called for that purpose. In the territory of the
14 political subdivision every elector may vote upon the
15 proposition stated in the petition. Such proposition shall
16 be in substantially the following form:
17 -------------------------------------------------------------
18 Shall....(political subdivision)
19 enter into a coverage agreement with
20 the Social Security Division of YES
21 the State Employees' Retirement ----------------------
22 System for extension of Federal Social NO
23 Security coverage to employees
24 of....(political subdivision)?
25 -------------------------------------------------------------
26 If a majority of all of the votes cast upon the
27 proposition is in favor thereof, or if the governing body has
28 adopted a resolution or ordinance providing for coverage of
29 its employees, the governing body shall execute the coverage
30 agreement provided by the State Agency and submit such
31 coverage agreement to the State Agency for approval. The
32 coverage agreement shall be approved by the State Agency if
33 it meets the requirements of subsection (b).
34 (b) Each coverage agreement of a political subdivision
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1 and any amendment thereof shall be approved by the State
2 Agency if it finds that such coverage agreement, or such
3 coverage agreement as amended, is in conformity with such
4 requirements as are provided in the regulations of the State
5 Agency, except that no such coverage agreement shall be
6 approved unless:
7 (1) it is in conformity with the requirements of
8 the Social Security Act and with the Federal-State
9 Agreement entered into under this Article;
10 (2) it provides that all services which constitute
11 employment and are performed in the employ of the
12 political subdivision by any employees thereof shall be
13 covered by the coverage agreement, except that such
14 agreement may, if the political subdivision so requests,
15 exclude all services in one or more classes of elective
16 positions, or positions the compensation for which is on
17 a fee basis;
18 (3) it provides for such methods of administration
19 of the coverage agreement by the political subdivision as
20 are found by the State Agency to be necessary for the
21 proper and efficient administration of the coverage
22 agreement; and
23 (4) it provides for an effective date of coverage
24 not earlier than the first day of the fifth calendar year
25 preceding the year in which the resulting modification of
26 the Federal-State Agreement is agreed to by the Secretary
27 and the State.
28 (c) In addition to the requirements in subsection (b),
29 no coverage agreement which provides for an effective date of
30 coverage prior to January 1, 1987 shall be approved unless:
31 (1) it specifies the sources from which the funds
32 required of it by this Article are expected to be
33 derived, and contains reasonable assurance that such
34 sources will be adequate for such purpose;
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1 (2) it contains a promise to deliver the proper
2 funds to the State Agency on or before the date requested
3 by the State Agency;
4 (3) it specifies some officer to act as custodian
5 of all funds collected and to be responsible to the State
6 Agency for the delivery of such funds;
7 (4) it provides that the political subdivision
8 shall pay into the Social Security Contribution Fund
9 contributions on covered wages at such times as the State
10 Agency may by regulations prescribe, in the amounts and
11 at the rates provided by this Article; and
12 (5) it provides that the political subdivision will
13 make such reports as the State Agency may from time to
14 time require, and comply with such provisions as the
15 State Agency or the Secretary may from time to time find
16 necessary.
17 (Source: P.A. 85-442.)
18 (40 ILCS 5/21-109) (from Ch. 108 1/2, par. 21-109)
19 Sec. 21-109. Payment of Contributions.
20 (a) Absolute coverage group: Each political subdivision
21 which has established Social Security coverage for its
22 employees under this Article shall pay into the Social
23 Security Contribution Fund contributions on covered wages
24 paid prior to January 1, 1987 in the amounts and at the rates
25 prescribed by subchapters A and B of the Federal Insurance
26 Contributions Act at the times prescribed in the regulations
27 of the State Agency. Taxes due on wages covered under the
28 Social Security Coverage Agreement paid after December 31,
29 1986 shall be paid by each political subdivision to the
30 Internal Revenue Service in the amounts and at the rates
31 specified in the Federal Insurance Contributions Act and at
32 the times prescribed in the regulations of the Internal
33 Revenue Service.
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1 Every political subdivision required to make payments is
2 authorized in consideration of the employee's retention in,
3 or entry upon, employment to impose upon each of its
4 employees, as to services which are covered by the coverage
5 agreement, a contribution with respect to wages computed by
6 applying the rates of contribution prescribed by Subchapter A
7 of the Federal Insurance Contributions Act, and to deduct the
8 amount of such contribution from such employee's wages when
9 paid.
10 Failure to deduct such contribution shall not relieve the
11 employee or employer of liability therefor.
12 (b) Retirement system coverage group: As a condition of
13 its coverage agreement, the governing body or board of
14 trustees of any retirement system which has adopted Social
15 Security coverage for its members under this Article shall
16 assume responsibility to the State Agency for the compiling
17 of wage data, the collection of related contributions
18 prescribed by subchapters A and B of the Federal Insurance
19 Contributions Act, and the timely reporting and payment of
20 such items upon the wages of all covered employees paid prior
21 to January 1, 1987 in the manner and at the times prescribed
22 by the State Agency.
23 Coincident to the adoption of coverage, the governing
24 body or board of trustees of the retirement system shall
25 promulgate rules and regulations in conformity with federal
26 regulations, applicable to the State or local governmental
27 entities or to the agencies and employees participating
28 therein, to insure the correct application of coverage and
29 the timely and accurate reporting of wages and collection of
30 contributions.
31 In the event of failure by the retirement system or the
32 governmental entities or agencies participating therein to
33 comply with the timely reporting and payment requirements
34 imposed by this Section, the retirement system shall be
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1 assessed any federal interest or late filing penalties
2 arising therefrom.
3 The contributions collected under this Section by any
4 retirement system which elects to adopt coverage shall be
5 remitted at such times as the State Agency shall prescribe
6 for deposit into the Social Security Contribution Fund.
7 The employees comprising the executive and administrative
8 staff of any retirement system which elects to adopt the
9 provisions of this Article shall have the contributions made
10 by the body employing them.
11 (c) If more or less than the correct amount of
12 contributions is paid to the State Agency, proper adjustment,
13 or refund without interest if adjustment is impractical,
14 shall be made in such manner and at such times as the State
15 Agency shall prescribe.
16 (Source: P.A. 85-442.)
17 (40 ILCS 5/21-115) (from Ch. 108 1/2, par. 21-115)
18 Sec. 21-115. Special fund abolished; designation of
19 remittance agents.
20 (a) The Social Security Contribution Fund is abolished
21 at the close of business on June 30, 1997. Any balance then
22 remaining in that Fund shall be transferred to the Social
23 Security Administration Fund created under Section 21-109.1,
24 and any amounts thereafter designated for deposit into the
25 Social Security Contribution Fund shall instead be deposited
26 into the Social Security Administration Fund. There is
27 hereby established a special fund to be known as the Social
28 Security Contribution Fund. Such fund shall consist of and
29 there shall be deposited in such fund (1) all contributions,
30 interest, and penalties collected under this Article, except
31 as provided in subsection (f) of this Section, (2) all sums
32 recovered upon the bond of the custodian or otherwise for
33 losses sustained by the fund, (3) payments of Medicare taxes
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1 in accordance with State Agency regulations, and (4) all
2 other moneys received for the fund from any other source. All
3 moneys in the fund shall be mingled and undivided. Subject to
4 the provisions of this Article, the State Agency is vested
5 with full power, authority and jurisdiction over the fund,
6 including all moneys and property or securities belonging
7 thereto, and may perform any and all acts whether or not
8 specifically designated, which are necessary to the
9 administration thereof.
10 (b) The Social Security Contribution Fund shall be
11 established and held separate and apart from any other funds
12 or moneys of the State of Illinois and shall be used and
13 administered exclusively for the purpose of this Article.
14 Withdrawals from such fund shall be made solely for the
15 following purposes:
16 (1) payment of amounts required to be paid to the
17 Secretary of the Treasury in relation to Social Security and
18 Medicare coverage,
19 (2) payment of refunds for overpayments which are not
20 otherwise adjustable,
21 (3) payment into the General Revenue Fund of the amount
22 by which penalties collected pursuant to Section 21-112 of
23 this Article exceed the federal interest charges for the
24 corresponding period,
25 (4) payment into the General Revenue Fund of the
26 necessary expenses collected for the performance of tax
27 audits for failure to pay contributions pursuant to Section
28 21-113 of this Article,
29 (5) pursuant to recovery of Social Security
30 contributions paid to the Secretary of the Treasury for the
31 period from January 1, 1979 to June 30, 1981 on sick pay
32 excluded from wages pursuant to Section 209(b) of the Social
33 Security Act, (i) payment of a fee to a private vendor,
34 selected by competitive bidding in accordance with The
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1 Illinois Purchasing Act, for the performance of all necessary
2 administrative actions required to obtain and distribute such
3 recovery, the fee to be contingent upon the amount of the
4 recovery and determined by contract, (ii) payment to the
5 Secretary of the Treasury of State Social Security
6 contributions for nonpayroll earnings received by court
7 reporters between January 1, 1977 and December 31, 1986, and
8 (iii) refund to the General Revenue Fund of the remainder of
9 the employer's share of the contributions so recovered,
10 (6) payment of reasonable expenses incurred in locating
11 former State employees for the purpose of refunding the
12 employees' share of Social Security contributions refunded to
13 the State as a result of the State's actions requesting
14 refunds of contributions paid to the Secretary of the
15 Treasury on sick pay as noted in item (5) and on the amount
16 of voluntary salary reductions by State employees
17 participating in the State's cafeteria plan of fringe
18 benefits under Section 125 of the Internal Revenue Code,
19 (7) out of the employer's share of contributions
20 recovered as a result of the State's action to reduce
21 reported wages by the amount of voluntary salary reduction by
22 State employees participating in the State's cafeteria plan
23 of fringe benefits under Section 125 of the Internal Revenue
24 Code, (i) payment to the Secretary of the Treasury of State
25 Social Security contributions for nonpayroll earnings
26 received by court reporters between January 1, 1977 and
27 December 31, 1986, and (ii) payment of the remainder into the
28 General Revenue Fund, and
29 (8) payment into the Social Security Administration Fund
30 established by Section 21-109.1 of this Article to satisfy
31 the State's liability for Social Security and Medicare
32 contribution liability on wages paid after December 31, 1986,
33 and to dispose of any remaining balance in the Social
34 Security Contribution Fund not required to satisfy the
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1 State's liability on wages paid prior to January 1, 1987.
2 (c) From the Social Security Contribution Fund the
3 custodian of the fund shall pay to the Secretary of the
4 Treasury such amounts at such times as may be directed by the
5 State Agency.
6 (d) The Treasurer of the State of Illinois shall be
7 ex-officio treasurer and custodian of the Social Security
8 Contribution Fund and shall administer such fund in
9 accordance with the provisions of this Article and the
10 directions of the State Agency, and shall pay all warrants of
11 the State Comptroller in accordance with the provisions of
12 this Section and with such regulations as the State Agency
13 may prescribe pursuant thereto.
14 (e) The Comptroller of the State of Illinois is
15 authorized and is directed to draw warrants upon the State
16 Treasurer payable from the Social Security Contribution Fund
17 for purposes provided for in this Article upon presentation
18 of vouchers approved by the State Agency.
19 (b) (f) The State Agency is authorized to designate any
20 retirement system which has adopted coverage under this
21 Article to act as remittance agent on behalf of the State
22 Agency and to make payment of the Social Security
23 contributions collected upon the wages of employees within
24 the retirement system coverage group directly to the
25 designated Federal Reserve Bank without the necessity of
26 deposit or clearance of such collections through the Social
27 Security Contribution Fund. Any retirement system so
28 designated as a remittance agent shall continue to be subject
29 to the regulations of the State Agency with respect to
30 coverage determinations, wage reporting, corrective
31 adjustments, and accountability for tax collections in the
32 same manner as any other covered entity.
33 (Source: P.A. 86-272.)
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1 Section 80. No acceleration or delay. Where this Act
2 makes changes in a statute that is represented in this Act by
3 text that is not yet or no longer in effect (for example, a
4 Section represented by multiple versions), the use of that
5 text does not accelerate or delay the taking effect of (i)
6 the changes made by this Act or (ii) provisions derived from
7 any other Public Act.
8 Section 85. Effective date. This Act takes effect upon
9 becoming law.