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90_SB0665sam003
LRB9000602EGfgam03
1 AMENDMENT TO SENATE BILL 665
2 AMENDMENT NO. . Amend Senate Bill 665, AS AMENDED,
3 by inserting immediately below the enacting clause the
4 following:
5 "Section 6. The State Employees Group Insurance Act of
6 1971 is amended by changing Sections 3 and 6.6 as follows:
7 (5 ILCS 375/3) (from Ch. 127, par. 523)
8 (Text of Section before amendment by P.A. 89-507)
9 Sec. 3. Definitions. Unless the context otherwise
10 requires, the following words and phrases as used in this Act
11 shall have the following meanings. The Department may define
12 these and other words and phrases separately for the purpose
13 of implementing specific programs providing benefits under
14 this Act.
15 (a) "Administrative service organization" means any
16 person, firm or corporation experienced in the handling of
17 claims which is fully qualified, financially sound and
18 capable of meeting the service requirements of a contract of
19 administration executed with the Department.
20 (b) "Annuitant" means (1) an employee who retires, or
21 has retired, on or after January 1, 1966 on an immediate
22 annuity under the provisions of Articles 2, 14, 15 (including
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1 an employee who has retired and is receiving a retirement
2 annuity under an optional program established under Section
3 15-158.2 and who would also be eligible for a retirement
4 annuity had that person been a participant in the State
5 University Retirement System), paragraphs (b) or (c) of
6 Section 16-106, or Article 18 of the Illinois Pension Code;
7 (2) any person who was receiving group insurance coverage
8 under this Act as of March 31, 1978 by reason of his status
9 as an annuitant, even though the annuity in relation to which
10 such coverage was provided is a proportional annuity based on
11 less than the minimum period of service required for a
12 retirement annuity in the system involved; (3) any person not
13 otherwise covered by this Act who has retired as a
14 participating member under Article 2 of the Illinois Pension
15 Code but is ineligible for the retirement annuity under
16 Section 2-119 of the Illinois Pension Code; (4) the spouse of
17 any person who is receiving a retirement annuity under
18 Article 18 of the Illinois Pension Code and who is covered
19 under a group health insurance program sponsored by a
20 governmental employer other than the State of Illinois and
21 who has irrevocably elected to waive his or her coverage
22 under this Act and to have his or her spouse considered as
23 the "annuitant" under this Act and not as a "dependent"; or
24 (5) an employee who retires, or has retired, from a qualified
25 position, as determined according to rules promulgated by the
26 Director, under a qualified local government or a qualified
27 rehabilitation facility or a qualified domestic violence
28 shelter or service. (For definition of "retired employee",
29 see (p) post).
30 (c) "Carrier" means (1) an insurance company, a
31 corporation organized under the Limited Health Service
32 Organization Act or the Voluntary Health Services Plan Act, a
33 partnership, or other nongovernmental organization, which is
34 authorized to do group life or group health insurance
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1 business in Illinois, or (2) the State of Illinois as a
2 self-insurer.
3 (d) "Compensation" means salary or wages payable on a
4 regular payroll by the State Treasurer on a warrant of the
5 State Comptroller out of any State, trust or federal fund, or
6 by the Governor of the State through a disbursing officer of
7 the State out of a trust or out of federal funds, or by any
8 Department out of State, trust, federal or other funds held
9 by the State Treasurer or the Department, to any person for
10 personal services currently performed, and ordinary or
11 accidental disability benefits under Articles 2, 14, 15
12 (including ordinary or accidental disability benefits under
13 an optional program established under Section 15-158.2),
14 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
15 Illinois Pension Code, for disability incurred after January
16 1, 1966, or benefits payable under the Workers' Compensation
17 or Occupational Diseases Act or benefits payable under a sick
18 pay plan established in accordance with Section 36 of the
19 State Finance Act. "Compensation" also means salary or wages
20 paid to an employee of any qualified local government or
21 qualified rehabilitation facility or a qualified domestic
22 violence shelter or service.
23 (e) "Commission" means the State Employees Group
24 Insurance Advisory Commission authorized by this Act.
25 Commencing July 1, 1984, "Commission" as used in this Act
26 means the Illinois Economic and Fiscal Commission as
27 established by the Legislative Commission Reorganization Act
28 of 1984.
29 (f) "Contributory", when referred to as contributory
30 coverage, shall mean optional coverages or benefits elected
31 by the member toward the cost of which such member makes
32 contribution, or which are funded in whole or in part through
33 the acceptance of a reduction in earnings or the foregoing of
34 an increase in earnings by an employee, as distinguished from
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1 noncontributory coverage or benefits which are paid entirely
2 by the State of Illinois without reduction of the member's
3 salary.
4 (g) "Department" means any department, institution,
5 board, commission, officer, court or any agency of the State
6 government receiving appropriations and having power to
7 certify payrolls to the Comptroller authorizing payments of
8 salary and wages against such appropriations as are made by
9 the General Assembly from any State fund, or against trust
10 funds held by the State Treasurer and includes boards of
11 trustees of the retirement systems created by Articles 2, 14,
12 15, 16 and 18 of the Illinois Pension Code. "Department"
13 also includes the Illinois Comprehensive Health Insurance
14 Board and the Illinois Rural Bond Bank.
15 (h) "Dependent", when the term is used in the context of
16 the health and life plan, means a member's spouse and any
17 unmarried child (1) from birth to age 19 including an adopted
18 child, a child who lives with the member from the time of the
19 filing of a petition for adoption until entry of an order of
20 adoption, a stepchild or recognized child who lives with the
21 member in a parent-child relationship, or a child who lives
22 with the member if such member is a court appointed guardian
23 of the child, or (2) age 19 to 23 enrolled as a full-time
24 student in any accredited school, financially dependent upon
25 the member, and eligible as a dependent for Illinois State
26 income tax purposes, or (3) age 19 or over who is mentally or
27 physically handicapped as defined in the Illinois Insurance
28 Code. For the health plan only, the term "dependent" also
29 includes any person enrolled prior to the effective date of
30 this Section who is dependent upon the member to the extent
31 that the member may claim such person as a dependent for
32 Illinois State income tax deduction purposes; no other such
33 person may be enrolled.
34 (i) "Director" means the Director of the Illinois
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1 Department of Central Management Services.
2 (j) "Eligibility period" means the period of time a
3 member has to elect enrollment in programs or to select
4 benefits without regard to age, sex or health.
5 (k) "Employee" means and includes each officer or
6 employee in the service of a department who (1) receives his
7 compensation for service rendered to the department on a
8 warrant issued pursuant to a payroll certified by a
9 department or on a warrant or check issued and drawn by a
10 department upon a trust, federal or other fund or on a
11 warrant issued pursuant to a payroll certified by an elected
12 or duly appointed officer of the State or who receives
13 payment of the performance of personal services on a warrant
14 issued pursuant to a payroll certified by a Department and
15 drawn by the Comptroller upon the State Treasurer against
16 appropriations made by the General Assembly from any fund or
17 against trust funds held by the State Treasurer, and (2) is
18 employed full-time or part-time in a position normally
19 requiring actual performance of duty during not less than 1/2
20 of a normal work period, as established by the Director in
21 cooperation with each department, except that persons elected
22 by popular vote will be considered employees during the
23 entire term for which they are elected regardless of hours
24 devoted to the service of the State, and (3) except that
25 "employee" does not include any person who is not eligible by
26 reason of such person's employment to participate in one of
27 the State retirement systems under Articles 2, 14, 15 (either
28 the regular Article 15 system or an optional program
29 established under Section 15-158.2) or 18, or under paragraph
30 (b) or (c) of Section 16-106, of the Illinois Pension Code,
31 but such term does include persons who are employed during
32 the 6 month qualifying period under Article 14 of the
33 Illinois Pension Code. Such term also includes any person
34 who (1) after January 1, 1966, is receiving ordinary or
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1 accidental disability benefits under Articles 2, 14, 15
2 (including ordinary or accidental disability benefits under
3 an optional program established under Section 15-158.2),
4 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
5 Illinois Pension Code, for disability incurred after January
6 1, 1966, (2) receives total permanent or total temporary
7 disability under the Workers' Compensation Act or
8 Occupational Disease Act as a result of injuries sustained or
9 illness contracted in the course of employment with the State
10 of Illinois, or (3) is not otherwise covered under this Act
11 and has retired as a participating member under Article 2 of
12 the Illinois Pension Code but is ineligible for the
13 retirement annuity under Section 2-119 of the Illinois
14 Pension Code. However, a person who satisfies the criteria
15 of the foregoing definition of "employee" except that such
16 person is made ineligible to participate in the State
17 Universities Retirement System by clause (4) of the first
18 paragraph of Section 15-107 of the Illinois Pension Code is
19 also an "employee" for the purposes of this Act. "Employee"
20 also includes any person receiving or eligible for benefits
21 under a sick pay plan established in accordance with Section
22 36 of the State Finance Act. "Employee" also includes each
23 officer or employee in the service of a qualified local
24 government, including persons appointed as trustees of
25 sanitary districts regardless of hours devoted to the service
26 of the sanitary district, and each employee in the service of
27 a qualified rehabilitation facility and each full-time
28 employee in the service of a qualified domestic violence
29 shelter or service, as determined according to rules
30 promulgated by the Director.
31 (l) "Member" means an employee, annuitant, retired
32 employee or survivor.
33 (m) "Optional coverages or benefits" means those
34 coverages or benefits available to the member on his or her
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1 voluntary election, and at his or her own expense.
2 (n) "Program" means the group life insurance, health
3 benefits and other employee benefits designed and contracted
4 for by the Director under this Act.
5 (o) "Health plan" means a self-insured health insurance
6 program offered by the State of Illinois for the purposes of
7 benefiting employees by means of providing, among others,
8 wellness programs, utilization reviews, second opinions and
9 medical fee reviews, as well as for paying for hospital and
10 medical care up to the maximum coverage provided by the plan,
11 to its members and their dependents.
12 (p) "Retired employee" means any person who would be an
13 annuitant as that term is defined herein but for the fact
14 that such person retired prior to January 1, 1966. Such term
15 also includes any person formerly employed by the University
16 of Illinois in the Cooperative Extension Service who would be
17 an annuitant but for the fact that such person was made
18 ineligible to participate in the State Universities
19 Retirement System by clause (4) of the first paragraph of
20 Section 15-107 of the Illinois Pension Code.
21 (q) "Survivor" means a person receiving an annuity as a
22 survivor of an employee or of an annuitant. "Survivor" also
23 includes: (1) the surviving dependent of a person who
24 satisfies the definition of "employee" except that such
25 person is made ineligible to participate in the State
26 Universities Retirement System by clause (4) of the first
27 paragraph of Section 15-107 of the Illinois Pension Code; and
28 (2) the surviving dependent of any person formerly employed
29 by the University of Illinois in the Cooperative Extension
30 Service who would be an annuitant except for the fact that
31 such person was made ineligible to participate in the State
32 Universities Retirement System by clause (4) of the first
33 paragraph of Section 15-107 of the Illinois Pension Code.
34 (r) "Medical services" means the services provided
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1 within the scope of their licenses by practitioners in all
2 categories licensed under the Medical Practice Act of 1987.
3 (s) "Unit of local government" means any county,
4 municipality, township, school district, special district or
5 other unit, designated as a unit of local government by law,
6 which exercises limited governmental powers or powers in
7 respect to limited governmental subjects, any not-for-profit
8 association with a membership that primarily includes
9 townships and township officials, that has duties that
10 include provision of research service, dissemination of
11 information, and other acts for the purpose of improving
12 township government, and that is funded wholly or partly in
13 accordance with Section 85-15 of the Township Code; any
14 not-for-profit corporation or association, with a membership
15 consisting primarily of municipalities, that operates its own
16 utility system, and provides research, training,
17 dissemination of information, or other acts to promote
18 cooperation between and among municipalities that provide
19 utility services and for the advancement of the goals and
20 purposes of its membership; and the Illinois Association of
21 Park Districts. "Qualified local government" means a unit of
22 local government approved by the Director and participating
23 in a program created under subsection (i) of Section 10 of
24 this Act.
25 (t) "Qualified rehabilitation facility" means any
26 not-for-profit organization that is accredited by the
27 Commission on Accreditation of Rehabilitation Facilities or
28 certified by the Department of Mental Health and
29 Developmental Disabilities to provide services to persons
30 with disabilities and which receives funds from the State of
31 Illinois for providing those services, approved by the
32 Director and participating in a program created under
33 subsection (j) of Section 10 of this Act.
34 (u) "Qualified domestic violence shelter or service"
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1 means any Illinois domestic violence shelter or service and
2 its administrative offices funded by the Illinois Department
3 of Public Aid, approved by the Director and participating in
4 a program created under subsection (k) of Section 10.
5 (v) "TRS benefit recipient" means a person who:
6 (1) is not a "member" as defined in this Section;
7 and
8 (2) is receiving a monthly benefit or retirement
9 annuity under Article 16 of the Illinois Pension Code;
10 and
11 (3) either (i) has at least 8 years of creditable
12 service under Article 16 of the Illinois Pension Code, or
13 (ii) was enrolled in the health insurance program offered
14 under that Article on January 1, 1996, or (iii) is the
15 survivor of a benefit recipient who had at least 8 years
16 of creditable service under Article 16 of the Illinois
17 Pension Code or was enrolled in the health insurance
18 program offered under that Article on the effective date
19 of this amendatory Act of 1995, or (iv) is a recipient or
20 survivor of a recipient of a disability benefit under
21 Article 16 of the Illinois Pension Code.
22 (w) "TRS dependent beneficiary" means a person who:
23 (1) is not a "member" or "dependent" as defined in
24 this Section; and
25 (2) is a TRS benefit recipient's: (A) spouse, (B)
26 dependent parent who is receiving at least half of his or
27 her support from the TRS benefit recipient, or (C)
28 unmarried natural or adopted child who is (i) under age
29 19, or (ii) enrolled as a full-time student in an
30 accredited school, financially dependent upon the TRS
31 benefit recipient, eligible as a dependent for Illinois
32 State income tax purposes, and either is under age 23 24
33 or was, on January 1, 1996, participating as a dependent
34 beneficiary in the health insurance program offered under
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1 Article 16 of the Illinois Pension Code, or (iii) age 19
2 or over who is mentally or physically handicapped as
3 defined in the Illinois Insurance Code.
4 (x) "Military leave with pay and benefits" refers to
5 individuals in basic training for reserves, special/advanced
6 training, annual training, emergency call up, or activation
7 by the President of the United States with approved pay and
8 benefits.
9 (y) "Military leave without pay and benefits" refers to
10 individuals who enlist for active duty in a regular component
11 of the U.S. Armed Forces or other duty not specified or
12 authorized under military leave with pay and benefits.
13 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
14 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
15 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-628,
16 eff. 8-9-96; revised 8-23-96.)
17 (Text of Section after amendment by P.A. 89-507)
18 Sec. 3. Definitions. Unless the context otherwise
19 requires, the following words and phrases as used in this Act
20 shall have the following meanings. The Department may define
21 these and other words and phrases separately for the purpose
22 of implementing specific programs providing benefits under
23 this Act.
24 (a) "Administrative service organization" means any
25 person, firm or corporation experienced in the handling of
26 claims which is fully qualified, financially sound and
27 capable of meeting the service requirements of a contract of
28 administration executed with the Department.
29 (b) "Annuitant" means (1) an employee who retires, or
30 has retired, on or after January 1, 1966 on an immediate
31 annuity under the provisions of Articles 2, 14, 15 (including
32 an employee who has retired and is receiving a retirement
33 annuity under an optional program established under Section
34 15-158.2 and who would also be eligible for a retirement
-11- LRB9000602EGfgam03
1 annuity had that person been a participant in the State
2 University Retirement System), paragraphs (b) or (c) of
3 Section 16-106, or Article 18 of the Illinois Pension Code;
4 (2) any person who was receiving group insurance coverage
5 under this Act as of March 31, 1978 by reason of his status
6 as an annuitant, even though the annuity in relation to which
7 such coverage was provided is a proportional annuity based on
8 less than the minimum period of service required for a
9 retirement annuity in the system involved; (3) any person not
10 otherwise covered by this Act who has retired as a
11 participating member under Article 2 of the Illinois Pension
12 Code but is ineligible for the retirement annuity under
13 Section 2-119 of the Illinois Pension Code; (4) the spouse of
14 any person who is receiving a retirement annuity under
15 Article 18 of the Illinois Pension Code and who is covered
16 under a group health insurance program sponsored by a
17 governmental employer other than the State of Illinois and
18 who has irrevocably elected to waive his or her coverage
19 under this Act and to have his or her spouse considered as
20 the "annuitant" under this Act and not as a "dependent"; or
21 (5) an employee who retires, or has retired, from a qualified
22 position, as determined according to rules promulgated by the
23 Director, under a qualified local government or a qualified
24 rehabilitation facility or a qualified domestic violence
25 shelter or service. (For definition of "retired employee",
26 see (p) post).
27 (c) "Carrier" means (1) an insurance company, a
28 corporation organized under the Limited Health Service
29 Organization Act or the Voluntary Health Services Plan Act, a
30 partnership, or other nongovernmental organization, which is
31 authorized to do group life or group health insurance
32 business in Illinois, or (2) the State of Illinois as a
33 self-insurer.
34 (d) "Compensation" means salary or wages payable on a
-12- LRB9000602EGfgam03
1 regular payroll by the State Treasurer on a warrant of the
2 State Comptroller out of any State, trust or federal fund, or
3 by the Governor of the State through a disbursing officer of
4 the State out of a trust or out of federal funds, or by any
5 Department out of State, trust, federal or other funds held
6 by the State Treasurer or the Department, to any person for
7 personal services currently performed, and ordinary or
8 accidental disability benefits under Articles 2, 14, 15
9 (including ordinary or accidental disability benefits under
10 an optional program established under Section 15-158.2),
11 paragraphs (b) or (c) of Section 16-106, or Article 18 of the
12 Illinois Pension Code, for disability incurred after January
13 1, 1966, or benefits payable under the Workers' Compensation
14 or Occupational Diseases Act or benefits payable under a sick
15 pay plan established in accordance with Section 36 of the
16 State Finance Act. "Compensation" also means salary or wages
17 paid to an employee of any qualified local government or
18 qualified rehabilitation facility or a qualified domestic
19 violence shelter or service.
20 (e) "Commission" means the State Employees Group
21 Insurance Advisory Commission authorized by this Act.
22 Commencing July 1, 1984, "Commission" as used in this Act
23 means the Illinois Economic and Fiscal Commission as
24 established by the Legislative Commission Reorganization Act
25 of 1984.
26 (f) "Contributory", when referred to as contributory
27 coverage, shall mean optional coverages or benefits elected
28 by the member toward the cost of which such member makes
29 contribution, or which are funded in whole or in part through
30 the acceptance of a reduction in earnings or the foregoing of
31 an increase in earnings by an employee, as distinguished from
32 noncontributory coverage or benefits which are paid entirely
33 by the State of Illinois without reduction of the member's
34 salary.
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1 (g) "Department" means any department, institution,
2 board, commission, officer, court or any agency of the State
3 government receiving appropriations and having power to
4 certify payrolls to the Comptroller authorizing payments of
5 salary and wages against such appropriations as are made by
6 the General Assembly from any State fund, or against trust
7 funds held by the State Treasurer and includes boards of
8 trustees of the retirement systems created by Articles 2, 14,
9 15, 16 and 18 of the Illinois Pension Code. "Department"
10 also includes the Illinois Comprehensive Health Insurance
11 Board and the Illinois Rural Bond Bank.
12 (h) "Dependent", when the term is used in the context of
13 the health and life plan, means a member's spouse and any
14 unmarried child (1) from birth to age 19 including an adopted
15 child, a child who lives with the member from the time of the
16 filing of a petition for adoption until entry of an order of
17 adoption, a stepchild or recognized child who lives with the
18 member in a parent-child relationship, or a child who lives
19 with the member if such member is a court appointed guardian
20 of the child, or (2) age 19 to 23 enrolled as a full-time
21 student in any accredited school, financially dependent upon
22 the member, and eligible as a dependent for Illinois State
23 income tax purposes, or (3) age 19 or over who is mentally or
24 physically handicapped as defined in the Illinois Insurance
25 Code. For the health plan only, the term "dependent" also
26 includes any person enrolled prior to the effective date of
27 this Section who is dependent upon the member to the extent
28 that the member may claim such person as a dependent for
29 Illinois State income tax deduction purposes; no other such
30 person may be enrolled.
31 (i) "Director" means the Director of the Illinois
32 Department of Central Management Services.
33 (j) "Eligibility period" means the period of time a
34 member has to elect enrollment in programs or to select
-14- LRB9000602EGfgam03
1 benefits without regard to age, sex or health.
2 (k) "Employee" means and includes each officer or
3 employee in the service of a department who (1) receives his
4 compensation for service rendered to the department on a
5 warrant issued pursuant to a payroll certified by a
6 department or on a warrant or check issued and drawn by a
7 department upon a trust, federal or other fund or on a
8 warrant issued pursuant to a payroll certified by an elected
9 or duly appointed officer of the State or who receives
10 payment of the performance of personal services on a warrant
11 issued pursuant to a payroll certified by a Department and
12 drawn by the Comptroller upon the State Treasurer against
13 appropriations made by the General Assembly from any fund or
14 against trust funds held by the State Treasurer, and (2) is
15 employed full-time or part-time in a position normally
16 requiring actual performance of duty during not less than 1/2
17 of a normal work period, as established by the Director in
18 cooperation with each department, except that persons elected
19 by popular vote will be considered employees during the
20 entire term for which they are elected regardless of hours
21 devoted to the service of the State, and (3) except that
22 "employee" does not include any person who is not eligible by
23 reason of such person's employment to participate in one of
24 the State retirement systems under Articles 2, 14, 15 (either
25 the regular Article 15 system or an optional program
26 established under Section 15-158.2) or 18, or under paragraph
27 (b) or (c) of Section 16-106, of the Illinois Pension Code,
28 but such term does include persons who are employed during
29 the 6 month qualifying period under Article 14 of the
30 Illinois Pension Code. Such term also includes any person
31 who (1) after January 1, 1966, is receiving 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, (2) receives total permanent or total temporary
4 disability under the Workers' Compensation Act or
5 Occupational Disease Act as a result of injuries sustained or
6 illness contracted in the course of employment with the State
7 of Illinois, or (3) is not otherwise covered under this Act
8 and has retired as a participating member under Article 2 of
9 the Illinois Pension Code but is ineligible for the
10 retirement annuity under Section 2-119 of the Illinois
11 Pension Code. However, a person who satisfies the criteria
12 of the foregoing definition of "employee" except that such
13 person is made ineligible to participate in the State
14 Universities Retirement System by clause (4) of the first
15 paragraph of Section 15-107 of the Illinois Pension Code is
16 also an "employee" for the purposes of this Act. "Employee"
17 also includes any person receiving or eligible for benefits
18 under a sick pay plan established in accordance with Section
19 36 of the State Finance Act. "Employee" also includes each
20 officer or employee in the service of a qualified local
21 government, including persons appointed as trustees of
22 sanitary districts regardless of hours devoted to the service
23 of the sanitary district, and each employee in the service of
24 a qualified rehabilitation facility and each full-time
25 employee in the service of a qualified domestic violence
26 shelter or service, as determined according to rules
27 promulgated by the Director.
28 (l) "Member" means an employee, annuitant, retired
29 employee or survivor.
30 (m) "Optional coverages or benefits" means those
31 coverages or benefits available to the member on his or her
32 voluntary election, and at his or her own expense.
33 (n) "Program" means the group life insurance, health
34 benefits and other employee benefits designed and contracted
-16- LRB9000602EGfgam03
1 for by the Director under this Act.
2 (o) "Health plan" means a self-insured health insurance
3 program offered by the State of Illinois for the purposes of
4 benefiting employees by means of providing, among others,
5 wellness programs, utilization reviews, second opinions and
6 medical fee reviews, as well as for paying for hospital and
7 medical care up to the maximum coverage provided by the plan,
8 to its members and their dependents.
9 (p) "Retired employee" means any person who would be an
10 annuitant as that term is defined herein but for the fact
11 that such person retired prior to January 1, 1966. Such term
12 also includes any person formerly employed by the University
13 of Illinois in the Cooperative Extension Service who would be
14 an annuitant but for the fact that such person was made
15 ineligible to participate in the State Universities
16 Retirement System by clause (4) of the first paragraph of
17 Section 15-107 of the Illinois Pension Code.
18 (q) "Survivor" means a person receiving an annuity as a
19 survivor of an employee or of an annuitant. "Survivor" also
20 includes: (1) the surviving dependent of a person who
21 satisfies the definition of "employee" except that such
22 person is made ineligible to participate in the State
23 Universities Retirement System by clause (4) of the first
24 paragraph of Section 15-107 of the Illinois Pension Code; and
25 (2) the surviving dependent of any person formerly employed
26 by the University of Illinois in the Cooperative Extension
27 Service who would be an annuitant except for the fact that
28 such person was made ineligible to participate in the State
29 Universities Retirement System by clause (4) of the first
30 paragraph of Section 15-107 of the Illinois Pension Code.
31 (r) "Medical services" means the services provided
32 within the scope of their licenses by practitioners in all
33 categories licensed under the Medical Practice Act of 1987.
34 (s) "Unit of local government" means any county,
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1 municipality, township, school district, special district or
2 other unit, designated as a unit of local government by law,
3 which exercises limited governmental powers or powers in
4 respect to limited governmental subjects, any not-for-profit
5 association with a membership that primarily includes
6 townships and township officials, that has duties that
7 include provision of research service, dissemination of
8 information, and other acts for the purpose of improving
9 township government, and that is funded wholly or partly in
10 accordance with Section 85-15 of the Township Code; any
11 not-for-profit corporation or association, with a membership
12 consisting primarily of municipalities, that operates its own
13 utility system, and provides research, training,
14 dissemination of information, or other acts to promote
15 cooperation between and among municipalities that provide
16 utility services and for the advancement of the goals and
17 purposes of its membership; and the Illinois Association of
18 Park Districts. "Qualified local government" means a unit of
19 local government approved by the Director and participating
20 in a program created under subsection (i) of Section 10 of
21 this Act.
22 (t) "Qualified rehabilitation facility" means any
23 not-for-profit organization that is accredited by the
24 Commission on Accreditation of Rehabilitation Facilities or
25 certified by the Department of Human Services (as successor
26 to the Department of Mental Health and Developmental
27 Disabilities) to provide services to persons with
28 disabilities and which receives funds from the State of
29 Illinois for providing those services, approved by the
30 Director and participating in a program created under
31 subsection (j) of Section 10 of this Act.
32 (u) "Qualified domestic violence shelter or service"
33 means any Illinois domestic violence shelter or service and
34 its administrative offices funded by the Department of Human
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1 Services (as successor to the Illinois Department of Public
2 Aid), approved by the Director and participating in a program
3 created under subsection (k) of Section 10.
4 (v) "TRS benefit recipient" means a person who:
5 (1) is not a "member" as defined in this Section;
6 and
7 (2) is receiving a monthly benefit or retirement
8 annuity under Article 16 of the Illinois Pension Code;
9 and
10 (3) either (i) has at least 8 years of creditable
11 service under Article 16 of the Illinois Pension Code, or
12 (ii) was enrolled in the health insurance program offered
13 under that Article on January 1, 1996, or (iii) is the
14 survivor of a benefit recipient who had at least 8 years
15 of creditable service under Article 16 of the Illinois
16 Pension Code or was enrolled in the health insurance
17 program offered under that Article on the effective date
18 of this amendatory Act of 1995, or (iv) is a recipient or
19 survivor of a recipient of a disability benefit under
20 Article 16 of the Illinois Pension Code.
21 (w) "TRS dependent beneficiary" means a person who:
22 (1) is not a "member" or "dependent" as defined in
23 this Section; and
24 (2) is a TRS benefit recipient's: (A) spouse, (B)
25 dependent parent who is receiving at least half of his or
26 her support from the TRS benefit recipient, or (C)
27 unmarried natural or adopted child who is (i) under age
28 19, or (ii) enrolled as a full-time student in an
29 accredited school, financially dependent upon the TRS
30 benefit recipient, eligible as a dependent for Illinois
31 State income tax purposes, and either is under age 23 24
32 or was, on January 1, 1996, participating as a dependent
33 beneficiary in the health insurance program offered under
34 Article 16 of the Illinois Pension Code, or (iii) age 19
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1 or over who is mentally or physically handicapped as
2 defined in the Illinois Insurance Code.
3 (x) "Military leave with pay and benefits" refers to
4 individuals in basic training for reserves, special/advanced
5 training, annual training, emergency call up, or activation
6 by the President of the United States with approved pay and
7 benefits.
8 (y) "Military leave without pay and benefits" refers to
9 individuals who enlist for active duty in a regular component
10 of the U.S. Armed Forces or other duty not specified or
11 authorized under military leave with pay and benefits.
12 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
13 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
14 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-507,
15 eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)
16 (5 ILCS 375/6.6)
17 Sec. 6.6. Contributions to the Teacher Health Insurance
18 Security Fund.
19 (a) Beginning July 1, 1995, all active contributors of
20 the Teachers' Retirement System (established under Article 16
21 of the Illinois Pension Code) who are not employees of a
22 department as defined in Section 3 of this Act shall make
23 contributions toward the cost of annuitant and survivor
24 health benefits at the rate of 0.5% of salary.
25 These contributions shall be deducted by the employer and
26 paid to the System as service agent for the Department of
27 Central Management Services. The System may use the same
28 processes for collecting the contributions required by this
29 subsection that it uses to collect contributions received
30 from school districts and other covered employers under
31 Sections 16-154 and 16-155 of the Illinois Pension Code. An
32 employer may agree to pick up or pay the contributions
33 required under this subsection on behalf of the teacher; such
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1 contributions shall be deemed to have been paid by the
2 teacher.
3 A person required to make contributions under this
4 subsection (a) who purchases optional service credit under
5 Article 16 of the Illinois Pension Code for a period services
6 actually performed after June 30, 1995 must also make a
7 contribution under this subsection for that optional credit,
8 at the applicable rate of 0.5% of the salary used in
9 computing the optional service credit, based on the required
10 employee contributions for that optional service credit, plus
11 the interest on this those employee contribution
12 contributions. This contribution shall be collected by the
13 System as service agent for the Department of Central
14 Management Services. at the time of receiving The
15 contribution required under this subsection for the optional
16 service credit must be paid in full before any annuity based
17 on that credit begins.
18 (b) The Teachers' Retirement System shall promptly
19 deposit all moneys collected under subsection (a) of this
20 Section into the Teacher Health Insurance Security Fund
21 created in Section 6.5 of this Act. The moneys collected
22 under this Section shall be used only for the purposes
23 authorized in Section 6.5 of this Act and shall not be
24 considered to be assets of the Teachers' Retirement System.
25 Contributions made under this Section are not transferable to
26 other pension funds or retirement systems and are not
27 refundable upon termination of service.
28 (c) On or before November 15 of each year, the Board of
29 Trustees of the Teachers' Retirement System shall certify to
30 the Governor, the Director of Central Management Services,
31 and the State Comptroller its estimate of the total amount of
32 contributions to be paid under subsection (a) of this Section
33 6.6 for the next fiscal year. The certification shall
34 include a detailed explanation of the methods and information
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1 that the Board relied upon in preparing its estimate. As
2 soon as possible after the effective date of this Section,
3 the Board shall submit its estimate for fiscal year 1996.
4 (d) Beginning in fiscal year 1996, on the first day of
5 each month, or as soon thereafter as may be practical, the
6 State Treasurer and the State Comptroller shall transfer from
7 the General Revenue Fund to the Teacher Health Insurance
8 Security Fund 1/12 of the annual amount appropriated for that
9 fiscal year to the State Comptroller for deposit into the
10 Teacher Health Insurance Security Fund under Section 1.3 of
11 the State Pension Funds Continuing Appropriation Act.
12 (e) Except where otherwise specified in this Section,
13 the definitions that apply to Article 16 of the Illinois
14 Pension Code apply to this Section.
15 (Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.)
16 Section 7. The Illinois Pension Code is amended by
17 changing Sections 14-118, 14-119, 14-120, 14-128, 15-131,
18 15-145, 16-106, 16-140, 16-151, 16-155, 16-158.1, 16-179,
19 16-185, and 16-187 and adding Sections 16-169.1, 16-181.3,
20 and 17-134.1 as follows:
21 (40 ILCS 5/14-118) (from Ch. 108 1/2, par. 14-118)
22 Sec. 14-118. Widow's annuity - Conditions for payment.
23 A widow who exercises the right of election to receive an
24 annuity pursuant to this Section is entitled to a lump sum
25 payment of $500 plus a widow's annuity, if
26 (1) she was married to the deceased member for at
27 least 1 year prior to his death or retirement, whichever
28 first occurs, and also on the day of the last termination
29 of his service as a State employee;
30 (2) the deceased member had at least 8 years of
31 creditable service if death occurred while in service, or
32 while on leave of absence from service, or while in
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1 receipt of a nonoccupational disability or occupational
2 disability benefit, or after retirement;
3 (3) she was nominated exclusively to receive the
4 entire death benefit payable under this Article;
5 (4) death of the member occurred after withdrawal,
6 and he had fulfilled the prescribed age and service
7 conditions for establishing a right in a retirement
8 annuity; and
9 (5) she elected to receive the widow's annuity
10 within 6 months from the date of death of the employee,
11 otherwise the survivors annuity if applicable, shall be
12 payable.
13 If a widow's annuity beneficiary becomes entitled to a
14 survivors annuity and a widow's annuity, she shall elect to
15 receive only one of such annuities.
16 The surviving spouse of a person who (1) died on or after
17 January 1, 1985, (2) withdrew from service prior to August 1,
18 1953, (3) was receiving an annuity from the system at the
19 time of death, and (4) meets all other requirements of this
20 Section, shall be entitled to the benefits provided under
21 this Section.
22 A widow's annuity shall be payable beginning on the first
23 of the month following the date of death of the member if the
24 widow has then attained age 50 or, if she is under age 50 on
25 such date, on the first of the month following her attainment
26 of such age; provided, that if an unmarried child or children
27 of the member under age 18 (or under age 22 if a full-time
28 student) also survive him, and the child or children are
29 under the care of the eligible widow, the widow's annuity
30 shall begin on the first of the month following the member's
31 death without regard to the age of the widow. If she is
32 under age 50 at the death of the member and she qualifies for
33 a widow's annuity, she is entitled to receive the lump sum
34 payment immediately upon application, but payment of the
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1 widow's annuity shall be deferred as provided above.
2 The provision for a widow's annuity shall not be
3 construed to affect the payment of a reversionary annuity.
4 If a widow qualifies for more than one widow's annuity, or
5 for a widow's annuity and a survivors annuity, she shall
6 elect to receive only one of such annuities.
7 This Section shall not apply to the widow of any male
8 person who first became a member after July 19, 1961.
9 (Source: P.A. 84-1028.)
10 (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
11 Sec. 14-119. Amount of widow's annuity.
12 (a) The widow's annuity shall be 50% of the amount of
13 retirement annuity payable to the member on the date of death
14 while on retirement if an annuitant, or on the date of his
15 death while in service if an employee, regardless of his age
16 on such date, or on the date of withdrawal if death occurred
17 after termination of service under the conditions prescribed
18 in the preceding Section.
19 (b) If an eligible widow, regardless of age, has in her
20 care any unmarried child or children of the member under age
21 18 (under age 22 if a full-time student), the widow's annuity
22 shall be increased in the amount of 5% of the retirement
23 annuity for each such child, but the combined payments for a
24 widow and children shall not exceed 66 2/3% of the member's
25 earned retirement annuity.
26 The amount of retirement annuity from which the widow's
27 annuity is derived shall be that earned by the member without
28 regard to whether he attained age 60 prior to his withdrawal
29 under the conditions stated or prior to his death.
30 (c) Adopted children shall be considered as children of
31 the member only if the proceedings for adoption were
32 commenced at least 1 year prior to the member's death.
33 Marriage of a child shall render the child ineligible for
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1 further consideration in the increase in the amount of the
2 widow's annuity.
3 Attainment of age 18 (age 22 if a full-time student) of a
4 child shall render a child him ineligible for further
5 consideration in the increase of the widow's annuity, but the
6 annuity to the widow shall be continued thereafter, without
7 regard to her age at that time.
8 (d) A widow's annuity payable on account of any covered
9 employee who shall have been a covered employee for at least
10 18 months shall be reduced by 1/2 of the amount of survivors
11 benefits to which his beneficiaries are eligible under the
12 provisions of the Federal Social Security Act, except that
13 (1) the amount of any widow's annuity payable under this
14 Article shall not be reduced by reason of any increase under
15 that Act which occurs after the offset required by this
16 subsection is first applied to that annuity, and (2) for
17 benefits granted on or after January 1, 1992, the offset
18 under this subsection (d) shall not exceed 50% of the amount
19 of widow's annuity otherwise payable.
20 (e) Upon the death of a recipient of a widow's annuity
21 the excess, if any, of the member's accumulated
22 contributions plus credited interest over all annuity
23 payments to the member and widow, exclusive of the $500 lump
24 sum payment, shall be paid to the named beneficiary of the
25 widow, or if none has been named, to the estate of the widow,
26 provided no reversionary annuity is payable.
27 (f) On January 1, 1981, any recipient of a widow's
28 annuity who was receiving a widow's annuity on or before
29 January 1, 1971, shall have her widow's annuity then being
30 paid increased by 1% for each full year which has elapsed
31 from the date the widow's annuity began. On January 1, 1982,
32 any recipient of a widow's annuity who began receiving a
33 widow's annuity after January 1, 1971, but before January 1,
34 1981, shall have her widow's annuity then being paid
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1 increased by 1% for each full year which has elapsed from the
2 date the widow's annuity began. On January 1, 1987, any
3 recipient of a widow's annuity who began receiving the
4 widow's annuity on or before January 1, 1977, shall have the
5 monthly widow's annuity increased by $1 for each full year
6 which has elapsed since the date the annuity began.
7 (g) Beginning January 1, 1990, every widow's annuity
8 shall be increased (1) on each January 1 occurring on or
9 after the commencement of the annuity if the deceased member
10 died while receiving a retirement annuity, or (2) in other
11 cases, on each January 1 occurring on or after the first
12 anniversary of the commencement of the annuity, by an amount
13 equal to 3% of the current amount of the annuity, including
14 any previous increases under this Article. Such increases
15 shall apply without regard to whether the deceased member was
16 in service on or after the effective date of Public Act
17 86-1488, but shall not accrue for any period prior to January
18 1, 1990.
19 (Source: P.A. 86-273; 86-1488; 87-794.)
20 (40 ILCS 5/14-120) (from Ch. 108 1/2, par. 14-120)
21 Sec. 14-120. Survivors annuities - Conditions for
22 payments. A survivors annuity is established for all members
23 of the System. Upon the death of any male person who was a
24 member on July 19, 1961, however, his widow may have the
25 option of receiving the widow's annuity provided in this
26 Article, in lieu of the survivors annuity.
27 (a) A survivors annuity beneficiary, as herein defined,
28 is eligible for a survivors annuity if the deceased member
29 had completed at least 1 1/2 years of contributing creditable
30 service if death occurred:
31 (1) while in service;
32 (2) while on an approved or authorized leave of
33 absence from service, not exceeding one year
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1 continuously; or
2 (3) while in receipt of a non-occupational
3 disability or an occupational disability benefit.
4 (b) If death of the member occurs after withdrawal, the
5 survivors annuity beneficiary is eligible for such annuity
6 only if the member had fulfilled at the date of withdrawal
7 the prescribed service conditions for establishing a right in
8 a retirement annuity.
9 (c) Payment of the survivors annuity shall begin
10 immediately if the beneficiary is 50 years or over, or upon
11 attainment of age 50 if the beneficiary is under that age at
12 the date of the member's death. In the case of survivors of a
13 member whose death occurred between November 1, 1970 and July
14 15, 1971, the payment of the survivors annuity shall begin
15 upon October 1, 1977, if the beneficiary is then 50 years of
16 age or older, or upon the attainment of age 50 if the
17 beneficiary is under that age on October 1, 1977.
18 If an eligible child or children, under the care of the
19 spouse also survive the member, the survivors annuity shall
20 begin immediately without regard to whether the beneficiary
21 has attained age 50.
22 Benefits under this Section shall accrue and be payable
23 for whole calendar months, beginning on the first day of the
24 month after the initiating event occurs and ending on the
25 last day of the month in which the terminating event occurs.
26 (d) A survivor annuity beneficiary means:
27 (1) A spouse of a member or annuitant if the
28 current marriage with member was in effect at least one
29 year at the date of the member's death or at least one
30 year at the date of his or her withdrawal, whichever
31 first occurs.;
32 (2) An unmarried child under age 18 (under age 22
33 if a full-time student) of the member or annuitant; an
34 unmarried stepchild under age 18 (under age 22 if a
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1 full-time student) who has been such for at least one
2 year at the date of the member's death or at least one
3 year at the date of withdrawal, whichever first occurs;
4 an unmarried adopted child under age 18 (under age 22 if
5 a full-time student) if the adoption proceedings were
6 initiated at least one year prior to the death or
7 withdrawal of the member or annuitant, whichever first
8 occurs; and an unmarried child over age 18 if he or she
9 is dependent by reason of a physical or mental
10 disability, so long as the such physical or mental
11 disability continues. For purposes of this subsection
12 sub-section, disability means inability to engage in any
13 substantial gainful activity by reason of any medically
14 determinable physical or mental impairment which can be
15 expected to result in death or which has lasted or can be
16 expected to last for a continuous period of not less than
17 12 months.;
18 (3) A dependent parent of the member or annuitant;
19 a dependent step-parent by a marriage contracted before
20 the member or annuitant attained age 18; or a dependent
21 adopting parent by whom the member or annuitant was
22 adopted before he or she attained age 18.
23 (e) Remarriage before age 55 or death of a spouse;
24 marriage or death of a child; or remarriage before age 55 or
25 death of a parent terminates the survivors annuity payable on
26 account of such beneficiary. Remarriage of a prospective
27 beneficiary prior to the attainment of age 50 disqualifies
28 the beneficiary for the annuity expectancy hereunder.
29 Termination due to a marriage or remarriage shall be
30 permanent regardless of any future changes in marital status.
31 Any person whose survivors annuity was terminated during
32 1978 or 1979 due to remarriage at age 55 or over shall be
33 eligible to apply, not later than July 1, 1990, for a
34 resumption of that annuity, to begin on July 1, 1990.
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1 (f) The term "dependent" relating to a survivors annuity
2 means a beneficiary of a survivors annuity who was receiving
3 from the member at the date of the member's death at least
4 1/2 of the support for maintenance including board, lodging,
5 medical care and like living costs.
6 (g) If there is no eligible spouse surviving the member,
7 or if a survivors annuity beneficiary includes a spouse who
8 dies or remarries, the annuity is payable to an unmarried
9 child or children. If at the date of death of the member
10 there is no spouse or unmarried child, payments shall be made
11 to a dependent parent or parents. If no eligible survivors
12 annuity beneficiary survives the member, the non-occupational
13 death benefit is payable in the manner provided in this
14 Article.
15 (h) Survivor benefits do not affect any reversionary
16 annuity.
17 (i) If a survivors annuity beneficiary becomes entitled
18 to a widow's annuity or one or more survivors annuities or
19 both such annuities, the beneficiary shall elect to receive
20 only one of such annuities.
21 (j) Contributing creditable service under the State
22 Universities Retirement System and the Teachers Retirement
23 System of the State of Illinois shall be considered in
24 determining whether the member has met the contributing
25 service requirements of this Section.
26 (k) In lieu of the Survivor's Annuity described in this
27 Section, the spouse of the member has the option to select
28 the Nonoccupational Death Benefit described in this Article,
29 provided the spouse is the sole survivor and the sole
30 nominated beneficiary of the member.
31 (l) The changes made to this Section and Sections
32 14-118, 14-119, and 14-128 by this amendatory Act of 1997,
33 relating to benefits for certain unmarried children who are
34 full-time students under age 22, apply without regard to
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1 whether the deceased member was in service on or after the
2 effective date of this amendatory Act of 1997. These changes
3 do not authorize the repayment of a refund or a re-election
4 of benefits, and any benefit or increase in benefits
5 resulting from these changes is not payable retroactively for
6 any period before the effective date of this amendatory Act
7 of 1997.
8 (Source: P.A. 86-273.)
9 (40 ILCS 5/14-128) (from Ch. 108 1/2, par. 14-128)
10 Sec. 14-128. Occupational death benefit. An
11 occupational death benefit is provided for a member of the
12 System whose death, prior to retirement, is the proximate
13 result of bodily injuries sustained or a hazard undergone
14 while in the performance and within the scope of the member's
15 duties.
16 (a) Conditions for payment.
17 Exclusive of the lump sum payment provided for herein,
18 all annuities under this Section shall accrue and be payable
19 for complete calendar months, beginning on the first day of
20 the month next following the month in which the initiating
21 event occurs and ending on the last day of the month in which
22 the terminating event occurs.
23 The following named survivors of the member may be
24 eligible for an annuity under this Section:
25 (i) The member's spouse.
26 (ii) An unmarried child of the member under age 18
27 (under age 22 if a full-time student); an unmarried
28 stepchild under age 18 (under age 22 if a full-time
29 student) who has been such for at least one year at the
30 date of the member's death; an unmarried adopted child
31 under age 18 (under age 22 if a full-time student) if the
32 adoption proceedings were initiated at least one year
33 prior to the death of the member; and an unmarried child
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1 over age 18 who is dependent by reason of a physical or
2 mental disability, for so long as such physical or mental
3 disability continues. For the purposes of this Section
4 disability means inability to engage in any substantial
5 gainful activity by reason of any medically determinable
6 physical or mental impairment which can be expected to
7 result in death or which has lasted or can be expected to
8 last for a continuous period of not less than 12 months.
9 (iii) If no spouse or eligible children survive: a
10 dependent parent of the member; a dependent step-parent
11 by a marriage contracted before the member attained age
12 18; or a dependent adopting parent by whom the member was
13 adopted before he or she attained age 18.
14 The term "dependent" relating to an Occupational Death
15 Benefit means a survivor of the member who was receiving from
16 the member at the date of the member's death at least 1/2 of
17 the support for maintenance including board, lodging, medical
18 care and like living costs.
19 Payment of the annuity shall continue until the
20 occurrence of the following:
21 (1) remarriage before age 55 or death, in the case
22 of a surviving spouse;
23 (2) attainment of age 18 or termination of
24 disability, death, or marriage, in the case of an
25 eligible child;
26 (3) remarriage before age 55 or death, in the case
27 of a dependent parent.
28 If none of the aforementioned beneficiaries is living at
29 the date of death of the member, no occupational death
30 benefit shall be payable, but the nonoccupational death
31 benefit shall be payable as provided in this Article.
32 (b) Amount of benefit.
33 The member's accumulated contributions plus credited
34 interest shall be payable in a lump sum to such person as the
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1 member has nominated by written direction, duly acknowledged
2 and filed with the Board, or if no such nomination to the
3 estate of the member. When an annuitant is re-employed by a
4 Department, the accumulated contributions plus credited
5 interest payable on the member's account shall, if the member
6 has not previously elected a reversionary annuity, consist of
7 the excess, if any, of the member's total accumulated
8 contributions plus credited interest for all creditable
9 service over the total amount of all retirement annuity
10 payments received by the member prior to death.
11 In addition to the foregoing payment, an annuity is
12 provided for eligible survivors as follows:
13 (1) If the survivor is a spouse only, the annuity
14 shall be 50% of the member's final average compensation.
15 (2) If the spouse has in her care an eligible child
16 or children, the annuity shall be increased by an amount
17 equal to 15% of the final average compensation on account
18 of each such child, subject to a limitation on the
19 combined annuities to a surviving spouse and children of
20 75% of final average compensation.
21 (3) If there is no surviving spouse, or if the
22 surviving spouse dies or remarries while a child remains
23 eligible, then each such child shall be entitled to an
24 annuity of 15% of the deceased member's final average
25 compensation, subject to a limitation of 50% of final
26 average compensation to all such children.
27 (4) If there is no surviving spouse or eligible
28 children, then an annuity shall be payable to the
29 member's dependent parents, equal to 25% of final average
30 compensation to each such beneficiary.
31 If any annuity payable under this Section is less than
32 the corresponding survivors annuity, the beneficiary or
33 beneficiaries of the annuity under this Section may elect to
34 receive the survivors annuity and the Nonoccupational Death
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1 Benefit provided for in this Article in lieu of the annuity
2 provided under this Section.
3 (c) Occupational death claims pending adjudication by
4 the Industrial Commission or a ruling by the agency
5 responsible for determining the liability of the State under
6 the "Workers' Compensation Act" or "Workers' Occupational
7 Diseases Act" shall be payable under the Survivor's Annuity
8 Section of this Article until a ruling or adjudication occurs
9 if the beneficiary or beneficiaries: (1) meet all conditions
10 for payment as prescribed in this Article; and (2) execute an
11 assignment of benefits payable as a result of adjudication by
12 the Industrial Commission or a ruling by the agency
13 responsible for determining the liability of the State under
14 such Acts. The assignment shall be made to the System and
15 shall be for an amount equal to the excess of benefits paid
16 under the Survivor's Annuity Section of this Article over
17 benefits payable as a result of adjudication of the Workers'
18 Compensation claim computed from the date of death of the
19 member.
20 (d) Every occupational death annuity payable under this
21 Section shall be increased on each January 1 occurring on or
22 after (i) January 1, 1990, or (ii) the first anniversary of
23 the commencement of the annuity, whichever occurs later, by
24 an amount equal to 3% of the current amount of the annuity,
25 including any previous increases under this Article, without
26 regard to whether the deceased member was in service on the
27 effective date of this amendatory Act of 1991.
28 (Source: P.A. 86-273; 86-1488.)
29 (40 ILCS 5/15-131) (from Ch. 108 1/2, par. 15-131)
30 Sec. 15-131. Survivors insurance beneficiary. "Survivors
31 insurance beneficiary": The spouse, dependent unmarried child
32 under age 18 (under age 22 if a full-time student), unmarried
33 child over age 18 who is dependent by reason of a physical or
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1 mental disability which began prior to attainment of that
2 age, or dependent parent, who could qualify for survivors
3 insurance payments under this Article.
4 (Source: P.A. 86-273; 86-1488.)
5 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
6 Sec. 15-145. Survivors insurance benefits; Conditions
7 and amounts.
8 (a) The survivors insurance benefits provided under this
9 Section shall be payable upon the death of (1) a
10 participating employee with at least 1 1/2 years of service,
11 (2) a participant who terminated employment with at least 10
12 years of service, and (3) an annuitant in receipt of a
13 retirement annuity or disability retirement annuity under
14 this Article.
15 Service under the State Employees' Retirement System of
16 Illinois, the Teachers' Retirement System of the State of
17 Illinois and the Public School Teacher's Pension and
18 Retirement Fund of Chicago shall be considered in determining
19 eligibility for survivors benefits under this Section.
20 If by law, a function of a governmental unit, as defined
21 by Section 20-107, is transferred in whole or in part to an
22 employer, and an employee transfers employment from this
23 governmental unit to such employer within 6 months after the
24 transfer of this function, the service credits in the
25 governmental unit's retirement system which have been
26 validated under Section 20-109 shall be considered in
27 determining eligibility for survivors benefits under this
28 Section.
29 (b) A surviving spouse of a deceased participant, or of
30 a deceased annuitant who had a survivors insurance
31 beneficiary at the time of retirement, shall receive a
32 survivors annuity of 30% of the final rate of earnings.
33 Payments shall begin on the day following the participant's
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1 or annuitant's death or the date the surviving spouse attains
2 age 50, whichever is later, and continue until the death of
3 the surviving spouse. The annuity shall be payable to the
4 surviving spouse prior to attainment of age 50 if the
5 surviving spouse has in his or her care a deceased
6 participant's or annuitant's dependent unmarried child under
7 age 18 (under age 22 if a full-time student) who is eligible
8 for a survivors annuity. Remarriage of a surviving spouse
9 prior to attainment of age 55 shall disqualify him or her for
10 the receipt of a survivors annuity.
11 (c) Each dependent unmarried child under age 18 (under
12 age 22 if a full-time student) of a deceased participant, or
13 of a deceased annuitant who had a survivors insurance
14 beneficiary at the time of his or her retirement, shall
15 receive a survivors annuity equal to the sum of (1) 20% of
16 the final rate of earnings, and (2) 10% of the final rate of
17 earnings divided by the number of children entitled to this
18 benefit. Payments shall begin on the day following the
19 participant's or annuitant's death and continue until the
20 child marries, dies, or attains age 18 (age 22 if a full-time
21 student). If the child is in the care of a surviving spouse
22 who is eligible for survivors insurance benefits, the child's
23 benefit shall be paid to the surviving spouse.
24 Each unmarried child over age 18 of a deceased
25 participant or of a deceased annuitant who had a survivor's
26 insurance beneficiary at the time of his or her retirement,
27 and who was dependent upon the participant or annuitant by
28 reason of a physical or mental disability which began prior
29 to the date the child attained age 18 (age 22 if a full-time
30 student), shall receive a survivor's annuity equal to the sum
31 of (1) 20% of the final rate of earnings, and (2) 10% of the
32 final rate of earnings divided by the number of children
33 entitled to survivors benefits. Payments shall begin on the
34 day following the participant's or annuitant's death and
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1 continue until the child marries, dies, or is no longer
2 disabled. If the child is in the care of a surviving spouse
3 who is eligible for survivors insurance benefits, the child's
4 benefit may be paid to the surviving spouse. For the
5 purposes of this Section, disability means inability to
6 engage in any substantial gainful activity by reason of any
7 medically determinable physical or mental impairment that can
8 be expected to result in death or that has lasted or can be
9 expected to last for a continuous period of at least one
10 year.
11 (d) Each dependent parent of a deceased participant, or
12 of a deceased annuitant who had a survivors insurance
13 beneficiary at the time of his or her retirement, shall
14 receive a survivors annuity equal to the sum of (1) 20% of
15 final rate of earnings, and (2) 10% of final rate of earnings
16 divided by the number of parents who qualify for the benefit.
17 Payments shall begin when the parent reaches age 55 or the
18 day following the participant's or annuitant's death,
19 whichever is later, and continue until the parent dies.
20 Remarriage of a parent prior to attainment of age 55 shall
21 disqualify the parent for the receipt of a survivors annuity.
22 (e) In addition to the survivors annuity provided above,
23 each survivors insurance beneficiary shall, upon death of the
24 participant or annuitant, receive a lump sum payment of
25 $1,000 divided by the number of such beneficiaries.
26 (f) The changes made in this Section by Public Act
27 81-712 pertaining to survivors annuities in cases of
28 remarriage prior to age 55 shall apply to each survivors
29 insurance beneficiary who remarries after June 30, 1979,
30 regardless of the date that the participant or annuitant
31 terminated his employment or died.
32 (g) On January 1, 1981, any person who was receiving a
33 survivors annuity on or before January 1, 1971 shall have the
34 survivors annuity then being paid increased by 1% for each
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1 full year which has elapsed from the date the annuity began.
2 On January 1, 1982, any survivor whose annuity began after
3 January 1, 1971, but before January 1, 1981, shall have the
4 survivor's annuity then being paid increased by 1% for each
5 year which has elapsed from the date the survivor's annuity
6 began. On January 1, 1987, any survivor who began receiving a
7 survivor's annuity on or before January 1, 1977, shall have
8 the monthly survivor's annuity increased by $1 for each full
9 year which has elapsed since the date the survivor's annuity
10 began.
11 (h) If the sum of the lump sum and total monthly
12 survivor benefits payable under this Section upon the death
13 of a participant amounts to less than the sum of the death
14 benefits payable under items (2) and (3) of Section 15-141,
15 the difference shall be paid in a lump sum to the beneficiary
16 of the participant who is living on the date that this
17 additional amount becomes payable.
18 (i) If the sum of the lump sum and total monthly
19 survivor benefits payable under this Section upon the death
20 of an annuitant receiving a retirement annuity or disability
21 retirement annuity amounts to less than the death benefit
22 payable under Section 15-142, the difference shall be paid to
23 the beneficiary of the annuitant who is living on the date
24 that this additional amount becomes payable.
25 (j) Effective on the later of (1) January 1, 1990, or
26 (2) the January 1 on or next after the date on which the
27 survivor annuity begins, if the deceased member died while
28 receiving a retirement annuity, or in all other cases the
29 January 1 nearest the first anniversary of the date the
30 survivor annuity payments begin, every survivors insurance
31 beneficiary shall receive an increase in his or her monthly
32 survivors annuity of 3%. On each January 1 after the initial
33 increase, the monthly survivors annuity shall be increased by
34 3% of the total survivors annuity provided under this
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1 Article, including previous increases provided by this
2 subsection. Such increases shall apply to the survivors
3 insurance beneficiaries of each participant and annuitant,
4 whether or not the employment status of the participant or
5 annuitant terminates before the effective date of this
6 amendatory Act of 1990.
7 (k) If the Internal Revenue Code of 1986, as amended,
8 requires that the survivors benefits be payable at an age
9 earlier than that specified in this Section the benefits
10 shall begin at the earlier age, in which event, the
11 survivor's beneficiary shall be entitled only to that amount
12 which is equal to the actuarial equivalent of the benefits
13 provided by this Section.
14 (l) The changes made to this Section and Section 15-131
15 by this amendatory Act of 1997, relating to benefits for
16 certain unmarried children who are full-time students under
17 age 22, apply without regard to whether the deceased member
18 was in service on or after the effective date of this
19 amendatory Act of 1997. These changes do not authorize the
20 repayment of a refund or a re-election of benefits, and any
21 benefit or increase in benefits resulting from these changes
22 is not payable retroactively for any period before the
23 effective date of this amendatory Act of 1997.
24 (Source: P.A. 86-272; 86-273; 86-1028; 86-1488.)
25 (40 ILCS 5/16-106) (from Ch. 108 1/2, par. 16-106)
26 (Text of Section before amendment by P.A. 89-507)
27 Sec. 16-106. Teacher. "Teacher": The following
28 individuals, provided that, for employment prior to July 1,
29 1990, they are employed on a full-time basis, or if not
30 full-time, on a permanent and continuous basis in a position
31 in which services are expected to be rendered for at least
32 one school term:
33 (1) Any educational, administrative, professional
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1 or other staff employed in the public common schools
2 included within this system in a position requiring
3 certification under the law governing the certification
4 of teachers;
5 (2) Any educational, administrative, professional
6 or other staff employed in any facility of the Department
7 of Children and Family Services, the Department of Mental
8 Health and Developmental Disabilities, or the Department
9 of Rehabilitation Services, in a position requiring
10 certification under the law governing the certification
11 of teachers, and any person who (i) works in such a
12 position for the Department of Corrections, (ii) was a
13 member of this System on May 31, 1987, and (iii) did not
14 elect to become a member of the State Employees'
15 Retirement System pursuant to Section 14-108.2 of this
16 Code;
17 (3) Any regional superintendent of schools,
18 assistant regional superintendent of schools, State
19 Superintendent of Education; any person employed by the
20 State Board of Education as an executive; any executive
21 of the boards engaged in the service of public common
22 school education in school districts covered under this
23 system of which the State Superintendent of Education is
24 an ex-officio member;
25 (4) Any employee of a school board association
26 operating in compliance with Article 23 of the School
27 Code who is certificated under the law governing the
28 certification of teachers;
29 (5) Any person employed by the retirement system as
30 an executive, and any person employed by the retirement
31 system who is certificated under the law governing the
32 certification of teachers;
33 (6) Any educational, administrative, professional
34 or other staff employed by and under the supervision and
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1 control of a regional superintendent of schools, provided
2 such employment position requires the person to be
3 certificated under the law governing the certification of
4 teachers and is in an educational program serving 2 or
5 more districts in accordance with a joint agreement
6 authorized by the School Code or by federal legislation;
7 (7) Any educational, administrative, professional
8 or other staff employed in an educational program
9 serving 2 or more school districts in accordance with a
10 joint agreement authorized by the School Code or by
11 federal legislation and in a position requiring
12 certification under the laws governing the certification
13 of teachers;
14 (8) Any officer or employee of a statewide teacher
15 organization or officer of a national teacher
16 organization who is certified under the law governing
17 certification of teachers, provided: (i) the individual
18 had previously established creditable service under this
19 Article, (ii) the individual files with the system, on or
20 before January 1, 1990, an irrevocable election to become
21 a member, and (iii) the individual does not receive
22 credit for such service under any other Article of this
23 Code;
24 (9) Any educational, administrative, professional,
25 or other staff employed in a charter school operating in
26 compliance with the Charter Schools Law who is
27 certificated under the law governing the certification of
28 teachers.
29 An annuitant receiving a retirement annuity under this
30 Article or under Article 17 of this Code who is temporarily
31 employed by a board of education or other employer not
32 exceeding that permitted under Section 16-118 is not a
33 "teacher" for purposes of this Article. A person who has
34 received a single-sum retirement benefit under Section
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1 16-136.4 of this Article is not a "teacher" for purposes of
2 this Article.
3 (Source: P.A. 89-450, eff. 4-10-96.)
4 (Text of Section after amendment by P.A. 89-507)
5 Sec. 16-106. Teacher. "Teacher": The following
6 individuals, provided that, for employment prior to July 1,
7 1990, they are employed on a full-time basis, or if not
8 full-time, on a permanent and continuous basis in a position
9 in which services are expected to be rendered for at least
10 one school term:
11 (1) Any educational, administrative, professional
12 or other staff employed in the public common schools
13 included within this system in a position requiring
14 certification under the law governing the certification
15 of teachers;
16 (2) Any educational, administrative, professional
17 or other staff employed in any facility of the Department
18 of Children and Family Services or the Department of
19 Human Services, in a position requiring certification
20 under the law governing the certification of teachers,
21 and any person who (i) works in such a position for the
22 Department of Corrections, (ii) was a member of this
23 System on May 31, 1987, and (iii) did not elect to become
24 a member of the State Employees' Retirement System
25 pursuant to Section 14-108.2 of this Code;
26 (3) Any regional superintendent of schools,
27 assistant regional superintendent of schools, State
28 Superintendent of Education; any person employed by the
29 State Board of Education as an executive; any executive
30 of the boards engaged in the service of public common
31 school education in school districts covered under this
32 system of which the State Superintendent of Education is
33 an ex-officio member;
34 (4) Any employee of a school board association
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1 operating in compliance with Article 23 of the School
2 Code who is certificated under the law governing the
3 certification of teachers;
4 (5) Any person employed by the retirement system as
5 an executive, and any person employed by the retirement
6 system who is certificated under the law governing the
7 certification of teachers;
8 (6) Any educational, administrative, professional
9 or other staff employed by and under the supervision and
10 control of a regional superintendent of schools, provided
11 such employment position requires the person to be
12 certificated under the law governing the certification of
13 teachers and is in an educational program serving 2 or
14 more districts in accordance with a joint agreement
15 authorized by the School Code or by federal legislation;
16 (7) Any educational, administrative, professional
17 or other staff employed in an educational program
18 serving 2 or more school districts in accordance with a
19 joint agreement authorized by the School Code or by
20 federal legislation and in a position requiring
21 certification under the laws governing the certification
22 of teachers;
23 (8) Any officer or employee of a statewide teacher
24 organization or officer of a national teacher
25 organization who is certified under the law governing
26 certification of teachers, provided: (i) the individual
27 had previously established creditable service under this
28 Article, (ii) the individual files with the system, on or
29 before January 1, 1990, an irrevocable election to become
30 a member, and (iii) the individual does not receive
31 credit for such service under any other Article of this
32 Code;
33 (9) Any educational, administrative, professional,
34 or other staff employed in a charter school operating in
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1 compliance with the Charter Schools Law who is
2 certificated under the law governing the certification of
3 teachers.
4 An annuitant receiving a retirement annuity under this
5 Article or under Article 17 of this Code who is temporarily
6 employed by a board of education or other employer not
7 exceeding that permitted under Section 16-118 is not a
8 "teacher" for purposes of this Article. A person who has
9 received a single-sum retirement benefit under Section
10 16-136.4 of this Article is not a "teacher" for purposes of
11 this Article.
12 (Source: P.A. 89-450, eff. 4-10-96; 89-507, eff. 7-1-97;
13 revised 10-3-96.)
14 (40 ILCS 5/16-140) (from Ch. 108 1/2, par. 16-140)
15 Sec. 16-140. Survivors' benefits - definitions. For the
16 purpose of Sections 16-138 through 16-143.2, the following
17 terms shall have the following meanings, unless the context
18 otherwise requires:
19 (1) "Average salary": the average salary for the highest
20 4 consecutive years within the last 10 years of creditable
21 service immediately preceding date of death or retirement,
22 whichever is applicable, or the average salary for the total
23 creditable service if service is less than 4 years.
24 (2) "Member": any teacher included in the membership of
25 the system. However, a teacher who becomes an annuitant of
26 the system or a teacher whose services terminate after 20
27 years of service from any cause other than retirement is
28 considered a member, subject to the conditions and
29 limitations stated in this Article.
30 (3) "Dependent beneficiary": (A) a surviving spouse of a
31 member or annuitant who was married to the member or
32 annuitant for the 12 month period immediately preceding and
33 on the date of death of such member or annuitant, except
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1 where a child is born of such marriage, in which case the
2 qualifying period shall not be applicable; (A-1) a surviving
3 spouse of a member or annuitant who (i) was married to the
4 member or annuitant on the date of the member or annuitant's
5 death, (ii) was married to the member or annuitant for a
6 period of at least 12 months (but not necessarily the 12
7 months immediately preceding the member or annuitant's
8 death), (iii) first applied for a survivor's benefit before
9 January 1, 1994, and (iv) has not received a benefit under
10 subsection (a) of Section 16-141 or paragraph (1) of Section
11 16-142; (B) an eligible child of a member or annuitant; and
12 (C) a dependent parent.
13 Unless otherwise designated by the member, eligibility
14 for benefits shall be in the order named, except that a
15 dependent parent shall be eligible only if there is no other
16 dependent beneficiary. Any benefit to be received by or paid
17 to a dependent beneficiary to be determined under this
18 paragraph as provided in Sections 16-141 and 16-142 may be
19 received by or paid to a trust established for such dependent
20 beneficiary if such dependent beneficiary is living at the
21 time such benefit would be received by or paid to such trust.
22 (4) "Eligible child": an unmarried natural or adopted
23 child of the member or annuitant under age 18 (age 22 if a
24 full-time student). An unmarried natural or adopted child,
25 regardless of age, who is dependent by reason of a physical
26 or mental disability, except any such child receiving
27 benefits under Article III of the Illinois Public Aid Code,
28 is eligible for so long as such physical or mental disability
29 continues. An adopted child, however, is eligible only if
30 the proceedings for adoption were finalized while the child
31 was a minor.
32 For purposes of this subsection, "disability" means an
33 inability to engage in any substantial gainful activity by
34 reason of any medically determinable physical or mental
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1 impairment which can be expected to result in death or which
2 has lasted or can be expected to last for a continuous period
3 of not less than 12 months.
4 The changes made to this Section by this amendatory Act
5 of 1997, relating to benefits for certain unmarried children
6 who are full-time students under age 22, apply without regard
7 to whether the deceased member was in service on or after the
8 effective date of this amendatory Act of 1997. These changes
9 do not authorize the repayment of a refund or a re-election
10 of benefits, and any benefit or increase in benefits
11 resulting from these changes is not payable retroactively for
12 any period before the effective date of this amendatory Act
13 of 1997.
14 (5) "Dependent parent": a parent who was receiving at
15 least 1/2 of his or her support from a member or annuitant
16 for the 12-month period immediately preceding and on the date
17 of such member's or annuitant's death, provided however, that
18 such dependent status terminates upon a member's acceptance
19 of a refund for survivor benefit contributions as provided
20 under Section 16-142.
21 (6) "Non-dependent beneficiary": any person,
22 organization or other entity designated by the member who
23 does not qualify as a dependent beneficiary.
24 (7) "In service": the condition of a member being in
25 receipt of salary as a teacher at any time within 12 months
26 immediately before his or her death, being on leave of
27 absence for which the member, upon return to teaching, would
28 be eligible to purchase service credit under subsection
29 (b)(5) of Section 16-127, or being in receipt of a disability
30 or occupational disability benefit. This term does not
31 include any annuitant or member who previously accepted a
32 refund of survivor benefit contributions under paragraph (1)
33 of Section 16-142 unless the conditions specified in
34 subsection (b) of Section 16-143.2 are met.
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1 (Source: P.A. 89-430, eff. 12-15-95.)
2 (40 ILCS 5/16-151) (from Ch. 108 1/2, par. 16-151)
3 Sec. 16-151. Refund. Upon termination of employment as a
4 teacher for any cause other than death or retirement, a
5 member shall be paid the following amount upon demand made at
6 least not previous to 4 months after ceasing to teach:
7 (1) from the Members' Contribution Reserve, the
8 actual total contributions paid by or on behalf of the
9 member for membership service which have not been
10 previously refunded and which are then credited to the
11 member's individual account in the Members' Contribution
12 Reserve, without interest thereon, and
13 (2) from the Employer's Contribution Reserve, the
14 actual contributions not previously refunded, paid by or
15 on behalf of the member for prior service and towards the
16 cost of the automatic annual increase in retirement
17 annuity as provided under Section 16-152, without
18 interest thereon.
19 Any such amounts may be paid to the member either in one
20 sum or, at the election of the board, in 4 quarterly
21 payments.
22 Contributions credited to a member for periods of
23 disability as provided in Sections 16-149 and 16-149.1 are
24 not refundable.
25 Upon acceptance of a refund, all accrued rights and
26 credits in the System are forfeited and may be reinstated
27 only if the refund is repaid together with interest from the
28 date of the refund to the date of repayment at the following
29 rates compounded annually: for periods prior to July 1,
30 1965, regular interest; for periods from July 1, 1965 to June
31 30, 1977, 4% per year; for periods on and after July 1, 1977,
32 regular interest. Repayment shall be permitted upon return to
33 membership; however, service credit previously forfeited by a
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1 refund and subsequently reinstated may not be used as a basis
2 for the payment of benefits, other than a refund of
3 contributions, prior to the completion of one year of
4 creditable service following the refund, except when
5 repayment is permitted under the provisions of the
6 "Retirement Systems Reciprocal Act" contained in Article 20.
7 (Source: P.A. 83-1440.)
8 (40 ILCS 5/16-155) (from Ch. 108 1/2, par. 16-155)
9 Sec. 16-155. Report to system and payment of deductions.
10 (a) The governing body of each school district shall
11 make two deposits each month. The deposit for member
12 contributions for salary paid between the first and the
13 fifteenth of the month is due by the 25th of the month. The
14 deposit of member contributions for salary paid between the
15 sixteenth and last day of the month is due by the 10th of the
16 following month. All required contributions for salary
17 earned during a school term are due by July 10 next following
18 the close of such school term.
19 The governing body of each State institution coming under
20 this retirement system, the State Comptroller or other State
21 officer certifying payroll vouchers including payments of
22 salary or wages to teachers, and any other employer of
23 teachers, shall, monthly, forward to the secretary of the
24 retirement system the member contributions required under
25 this Article.
26 Each employer specified above shall, prior to August 15
27 of each year, forward to the System a detailed statement,
28 verified in all cases of school districts by the secretary or
29 clerk of the district, of the amounts so contributed since
30 the period covered by the last previous annual statement,
31 together with required contributions not yet forwarded, such
32 payments being payable to the System.
33 The board may prescribe rules governing the form,
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1 content, investigation, control, and supervision of such
2 statements. The governing body of each school district
3 shall, at the same time, send a copy of the statement to the
4 regional superintendent of schools for the region in which
5 the district under its control is located. If no teacher in
6 a school district comes under the provisions of this Article,
7 the governing body of the district shall so state under the
8 oath of its secretary to this system, and shall at the same
9 time forward a copy of the statement to the regional
10 superintendent of schools.
11 (b) If the governing body of an employer that is not a
12 State agency a school district fails to forward such required
13 contributions within the time permitted in subsection (a)
14 above, the System shall notify the district of an additional
15 amount due, equal to the greater of the following: (1) an
16 amount representing the interest lost by the system due to
17 late forwarding of contributions, calculated for the number
18 of days which the school district is late in forwarding
19 contributions at a rate of interest prescribed by the board,
20 based on its investment experience; or (2) $50.
21 (c) If the system, on August 15, is not in receipt of
22 the detailed statements required under this Section of any
23 school district or other employing unit, such school district
24 or other employing unit shall pay to the system an amount
25 equal to $250 for each day that elapses from August 15, until
26 the day such statement is filed with the system.
27 (Source: P.A. 86-273.)
28 (40 ILCS 5/16-158.1) (from Ch. 108 1/2, par. 16-158.1)
29 Sec. 16-158.1. Actions to enforce payments by school
30 districts and other employing units. Any school district or
31 other employing unit failing to transmit to the System
32 contributions required of it under this Article or
33 contributions required of teachers, for more than 90 days
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1 after such contributions are due is subject to the following:
2 after giving notice to the district or other unit, the System
3 may certify to the State Comptroller or the Regional
4 Superintendent of Schools the amounts of such delinquent
5 payments and the State Comptroller or the Regional
6 Superintendent of Schools shall deduct the amounts so
7 certified or any part thereof from any grants of State funds
8 to be remitted to the school district or other employing unit
9 involved and shall pay the amount so deducted to the System.
10 If State funds from which such deductions may be made are not
11 available, the System may proceed against the school district
12 or other employing unit to recover the amounts of such
13 delinquent payments in the appropriate circuit court.
14 The System may provide for an audit of the records of a
15 school district or other employing unit as may be required to
16 establish the amounts of required contributions. The school
17 district or other employing unit shall make its records
18 available to the System for the purpose of such audit. The
19 cost of such audit shall be added to the amount of the
20 delinquent payments and shall be recovered by the System from
21 the school district or other employing unit at the same time
22 and in the same manner as the delinquent payments are
23 recovered.
24 (Source: P.A. 85-1008.)
25 (40 ILCS 5/16-169.1 new)
26 Sec. 16-169.1. Testimony and the production of records.
27 The secretary of the Board shall have the power to issue
28 subpoenas to compel the attendance of witnesses and the
29 production of documents and records, including law
30 enforcement records maintained by law enforcement agencies,
31 in conjunction with a disability claim, administrative review
32 proceeding, or felony forfeiture investigation. The fees of
33 witnesses for attendance and travel shall be the same as the
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1 fees of witnesses before the circuit courts of this State and
2 shall be paid by the party seeking the subpoena. The Board
3 may apply to any circuit court in the State for an order
4 requiring compliance with a subpoena issued under this
5 Section. Subpoenas issued under this Section shall be
6 subject to applicable provisions of the Code of Civil
7 Procedure.
8 (40 ILCS 5/16-179) (from Ch. 108 1/2, par. 16-179)
9 Sec. 16-179. To be trustee of reserves and to invest
10 funds. To be the trustee of the reserves created under this
11 Article, and to invest and reinvest such reserves, subject to
12 the requirements and restrictions set forth in Sections
13 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114 and 1-115.
14 No bank or savings and loan association shall receive
15 investment funds as permitted by this Section, unless it has
16 complied with the requirements established pursuant to
17 Section 6 of "An Act relating to certain investments of
18 public funds by public agencies", approved July 23, 1943, as
19 now or hereafter amended. The limitations set forth in such
20 Section 6 shall be applicable only at the time of investment
21 and shall not require the liquidation of any investment at
22 any time.
23 The board shall have the authority to enter into such
24 agreements and to execute such documents as it determines to
25 be necessary to complete any investment transaction.
26 All investments shall be clearly held and accounted for
27 to indicate ownership by the system. The board may direct
28 the registration of securities or the holding in interests in
29 real property in the name of the system or in the name of a
30 nominee created for the express purpose of registration of
31 securities or holding interests in real property by a
32 national or state bank or trust company authorized to conduct
33 a trust business in the State of Illinois. The board may
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1 hold title to interests in real property in the name of the
2 system or in the name of a title holding corporation created
3 for the express purpose of holding title to interests in real
4 property.
5 Investments shall be carried at cost or at a book value
6 determined in accordance with generally accepted accounting
7 principles. No adjustments shall be made in investment
8 carrying values for ordinary current market price
9 fluctuations; but reserves may be provided to account for
10 possible losses or unrealized gains.
11 The book value of investments held by the retirement
12 system in one or more commingled investment accounts shall be
13 the cost of its units of participation in such commingled
14 account or accounts.
15 (Source: P.A. 86-272.)
16 (40 ILCS 5/16-181.3 new)
17 Sec. 16-181.3. To prescribe the manner of payment. To
18 prescribe by rule the manner of repaying refunds and
19 purchasing the various optional service credits permitted
20 under this Article. The rules may prescribe the conditions
21 under which installment payments or partial payments may be
22 accepted and may specify the method of computing any interest
23 due.
24 (40 ILCS 5/16-185) (from Ch. 108 1/2, par. 16-185)
25 Sec. 16-185. Employer's contribution reserve.
26 (a) The Employer's Contribution Reserve shall serve as a
27 clearing account for income and expenses of the System as
28 well as transfers to and from the other reserve accounts
29 established under this Article and adjustments thereto.
30 (b) This reserve shall be credited with:
31 (1) All amounts contributed by the State, except
32 those credited to other reserve accounts as provided in
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1 this Article.
2 (2) The total member and employer contributions
3 except those required by other reserve accounts.
4 (3) The total income from invested assets of the
5 System, and other miscellaneous income.
6 (4) The interest portion of the accumulated
7 contributions of members granted refunds.
8 (5) Contributions made by annuitants to qualify for
9 automatic annual increases in annuity, except those
10 required by other reserve accounts.
11 (c) This reserve shall be charged with:
12 (1) All amounts necessary to be transferred to the
13 Members' Contribution Reserve.
14 (2) All retirement annuity, single-sum retirement
15 benefit and disability retirement annuity payments,
16 including automatic annual increases in annuities, except
17 as provided by other reserve accounts.
18 (3) All amounts necessary to be refunded to
19 withdrawing members except as provided by the Members'
20 Contribution Reserve.
21 (4) All benefits paid to temporarily or
22 accidentally disabled members of this System, and all
23 amounts credited to the accounts of such disabled members
24 in lieu of contributions.
25 (5) All amounts payable as death benefits except as
26 provided by the Members' Contribution Reserve.
27 (6) All amounts necessary for the payment of costs
28 for the health insurance program as provided under this
29 Article.
30 (7) All survivor benefit contributions refunded to
31 an annuitant as provided under Section 16-143.2.
32 (8) All amounts paid in accordance with Section
33 16-131.1 except as provided by the Members' Contribution
34 Reserve.
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1 (9) Interest to be credited to other reserve
2 accounts as specified in this Article.
3 (10) Recognition of unrealized gains or losses in
4 market value, upon adoption of generally accepted
5 accounting principles that allow for such recognition.
6 (Source: P.A. 88-593, eff. 8-22-94; 89-235, eff. 8-4-95.)
7 (40 ILCS 5/16-187) (from Ch. 108 1/2, par. 16-187)
8 Sec. 16-187. Custodian of fund - warrants and vouchers -
9 audits. (a) The State Treasurer is ex-officio custodian of
10 the funds of the retirement system. He or she may process
11 payments from the funds of the system for the purposes herein
12 specified upon warrants or direct deposit transmittals of the
13 State Comptroller. Commencing January 1, 1987, the State
14 Treasurer shall credit interest, at current rates, for any
15 monies directly held. Such interest shall be calculated
16 using an average daily cash basis. He or she shall be liable
17 on the Treasurer's official bond for the proper performance
18 of duties and be held accountable for all cash and securities
19 in his or her custody. He or she shall keep books and
20 accounts in the manner prescribed by the board, and they
21 shall always be subject to the inspection of the board or any
22 member thereof.
23 (b) The State Comptroller may draw warrants or prepare
24 direct deposit transmittals payable from the fund upon the
25 State Treasurer for the purposes herein provided upon the
26 presentation of vouchers approved by the president and the
27 secretary of the board. The board shall file with the State
28 Comptroller an attested copy of a resolution designating such
29 persons as his authority for making payments upon such
30 vouchers.
31 (c) At the end of each fiscal year, the board shall have
32 the accounts and records of the system audited by a person
33 authorized to practice public accounting under the laws of
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1 this state selected by the Auditor General. Copies of all
2 audits performed shall be filed with the State Board of
3 Education and the Auditor General.
4 (Source: P.A. 85-1008.)
5 (40 ILCS 5/17-134.1 new)
6 Sec. 17-134.1. Labor organization employees.
7 (a) A former teacher who is employed by a teacher or
8 labor organization and is not eligible to participate under
9 subdivision (4) of Section 17-134 because he or she is not on
10 a special leave of absence may elect to participate in the
11 Fund for the duration of that employment by so notifying the
12 Fund in writing. Participation shall be subject to the same
13 conditions as are applicable to persons participating under
14 that subdivision (4), and service credit shall be contingent
15 upon the required contributions being received by the Fund.
16 (b) A person who participates in the Fund under
17 subsection (a) may establish service credit for periods of
18 such employment that took place before beginning
19 participation under this Section by submitting a written
20 application to the Fund. Credit shall be granted upon
21 payment to the Fund of an amount to be determined by the
22 Fund, equal to (i) the employee contributions that would have
23 been paid if the person had participated under subdivision
24 (4) of Section 17-134 during the period for which service
25 credit is to be established, based on the actual salary
26 received, plus (ii) the employer's normal cost associated
27 with that service credit, plus (iii) interest on items (i)
28 and (ii) at the rate of 6% per year, compounded annually,
29 from the date of the service established to the date of
30 payment. Service credit under this subsection shall not be
31 granted until the required contribution has been paid in
32 full; the contribution may be paid at any time before
33 retirement.
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1 (c) A person who participates in the Fund under
2 subsection (a) may reestablish any service credits previously
3 forfeited by acceptance of a refund by paying to the Fund the
4 amount of the refund plus interest thereon at the rate of 5%
5 per annum, compounded annually, from the date of the refund
6 to the date of payment.
7 (d) Rollover contributions from other retirement plans
8 qualified under the Internal Revenue Code of 1986 may be used
9 to make the payments required under subsections (b) and (c).
10 (e) No service credit may be established under this
11 Section for any period of employment for which the person
12 receives service credit under any other provision of this
13 Code.".