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90_SB0665sam012
LRB9000602EGfgam16
1 AMENDMENT TO SENATE BILL 665
2 AMENDMENT NO. . Amend Senate Bill 665, AS AMENDED,
3 by replacing the title with the following:
4 "AN ACT in relation to public employee pensions."; and
5 by inserting immediately below the enacting clause the
6 following:
7 "Section 5. The State Employees Group Insurance Act of
8 1971 is amended by changing Section 3 as follows:
9 (5 ILCS 375/3) (from Ch. 127, par. 523)
10 (Text of Section before amendment by P.A. 89-507)
11 Sec. 3. Definitions. Unless the context otherwise
12 requires, the following words and phrases as used in this Act
13 shall have the following meanings. The Department may define
14 these and other words and phrases separately for the purpose
15 of implementing specific programs providing benefits under
16 this Act.
17 (a) "Administrative service organization" means any
18 person, firm or corporation experienced in the handling of
19 claims which is fully qualified, financially sound and
20 capable of meeting the service requirements of a contract of
21 administration executed with the Department.
-2- LRB9000602EGfgam16
1 (b) "Annuitant" means (1) an employee who retires, or
2 has retired, on or after January 1, 1966 on an immediate
3 annuity under the provisions of Articles 2, 14, 15 (including
4 an employee who has retired and is receiving a retirement
5 annuity under the an optional retirement program established
6 under Section 15-158.2 and who would also be eligible for a
7 retirement annuity had that person been a participant in the
8 State University Retirement System), paragraphs (b) or (c) of
9 Section 16-106, or Article 18 of the Illinois Pension Code;
10 (2) any person who was receiving group insurance coverage
11 under this Act as of March 31, 1978 by reason of his status
12 as an annuitant, even though the annuity in relation to which
13 such coverage was provided is a proportional annuity based on
14 less than the minimum period of service required for a
15 retirement annuity in the system involved; (3) any person not
16 otherwise covered by this Act who has retired as a
17 participating member under Article 2 of the Illinois Pension
18 Code but is ineligible for the retirement annuity under
19 Section 2-119 of the Illinois Pension Code; (4) the spouse of
20 any person who is receiving a retirement annuity under
21 Article 18 of the Illinois Pension Code and who is covered
22 under a group health insurance program sponsored by a
23 governmental employer other than the State of Illinois and
24 who has irrevocably elected to waive his or her coverage
25 under this Act and to have his or her spouse considered as
26 the "annuitant" under this Act and not as a "dependent"; or
27 (5) an employee who retires, or has retired, from a qualified
28 position, as determined according to rules promulgated by the
29 Director, under a qualified local government or a qualified
30 rehabilitation facility or a qualified domestic violence
31 shelter or service. (For definition of "retired employee",
32 see (p) post).
33 (c) "Carrier" means (1) an insurance company, a
34 corporation organized under the Limited Health Service
-3- LRB9000602EGfgam16
1 Organization Act or the Voluntary Health Services Plan Act, a
2 partnership, or other nongovernmental organization, which is
3 authorized to do group life or group health insurance
4 business in Illinois, or (2) the State of Illinois as a
5 self-insurer.
6 (d) "Compensation" means salary or wages payable on a
7 regular payroll by the State Treasurer on a warrant of the
8 State Comptroller out of any State, trust or federal fund, or
9 by the Governor of the State through a disbursing officer of
10 the State out of a trust or out of federal funds, or by any
11 Department out of State, trust, federal or other funds held
12 by the State Treasurer or the Department, to any person for
13 personal services currently performed, and ordinary or
14 accidental disability benefits under Articles 2, 14, 15
15 (including ordinary or accidental disability benefits under
16 the an optional retirement program established under Section
17 15-158.2), paragraphs (b) or (c) of Section 16-106, or
18 Article 18 of the Illinois Pension Code, for disability
19 incurred after January 1, 1966, or benefits payable under the
20 Workers' Compensation or Occupational Diseases Act or
21 benefits payable under a sick pay plan established in
22 accordance with Section 36 of the State Finance Act.
23 "Compensation" also means salary or wages paid to an employee
24 of any qualified local government or qualified rehabilitation
25 facility or a qualified domestic violence shelter or service.
26 (e) "Commission" means the State Employees Group
27 Insurance Advisory Commission authorized by this Act.
28 Commencing July 1, 1984, "Commission" as used in this Act
29 means the Illinois Economic and Fiscal Commission as
30 established by the Legislative Commission Reorganization Act
31 of 1984.
32 (f) "Contributory", when referred to as contributory
33 coverage, shall mean optional coverages or benefits elected
34 by the member toward the cost of which such member makes
-4- LRB9000602EGfgam16
1 contribution, or which are funded in whole or in part through
2 the acceptance of a reduction in earnings or the foregoing of
3 an increase in earnings by an employee, as distinguished from
4 noncontributory coverage or benefits which are paid entirely
5 by the State of Illinois without reduction of the member's
6 salary.
7 (g) "Department" means any department, institution,
8 board, commission, officer, court or any agency of the State
9 government receiving appropriations and having power to
10 certify payrolls to the Comptroller authorizing payments of
11 salary and wages against such appropriations as are made by
12 the General Assembly from any State fund, or against trust
13 funds held by the State Treasurer and includes boards of
14 trustees of the retirement systems created by Articles 2, 14,
15 15, 16 and 18 of the Illinois Pension Code. "Department"
16 also includes the Illinois Comprehensive Health Insurance
17 Board and the Illinois Rural Bond Bank.
18 (h) "Dependent", when the term is used in the context of
19 the health and life plan, means a member's spouse and any
20 unmarried child (1) from birth to age 19 including an adopted
21 child, a child who lives with the member from the time of the
22 filing of a petition for adoption until entry of an order of
23 adoption, a stepchild or recognized child who lives with the
24 member in a parent-child relationship, or a child who lives
25 with the member if such member is a court appointed guardian
26 of the child, or (2) age 19 to 23 enrolled as a full-time
27 student in any accredited school, financially dependent upon
28 the member, and eligible as a dependent for Illinois State
29 income tax purposes, or (3) age 19 or over who is mentally or
30 physically handicapped as defined in the Illinois Insurance
31 Code. For the health plan only, the term "dependent" also
32 includes any person enrolled prior to the effective date of
33 this Section who is dependent upon the member to the extent
34 that the member may claim such person as a dependent for
-5- LRB9000602EGfgam16
1 Illinois State income tax deduction purposes; no other such
2 person may be enrolled.
3 (i) "Director" means the Director of the Illinois
4 Department of Central Management Services.
5 (j) "Eligibility period" means the period of time a
6 member has to elect enrollment in programs or to select
7 benefits without regard to age, sex or health.
8 (k) "Employee" means and includes each officer or
9 employee in the service of a department who (1) receives his
10 compensation for service rendered to the department on a
11 warrant issued pursuant to a payroll certified by a
12 department or on a warrant or check issued and drawn by a
13 department upon a trust, federal or other fund or on a
14 warrant issued pursuant to a payroll certified by an elected
15 or duly appointed officer of the State or who receives
16 payment of the performance of personal services on a warrant
17 issued pursuant to a payroll certified by a Department and
18 drawn by the Comptroller upon the State Treasurer against
19 appropriations made by the General Assembly from any fund or
20 against trust funds held by the State Treasurer, and (2) is
21 employed full-time or part-time in a position normally
22 requiring actual performance of duty during not less than 1/2
23 of a normal work period, as established by the Director in
24 cooperation with each department, except that persons elected
25 by popular vote will be considered employees during the
26 entire term for which they are elected regardless of hours
27 devoted to the service of the State, and (3) except that
28 "employee" does not include any person who is not eligible by
29 reason of such person's employment to participate in one of
30 the State retirement systems under Articles 2, 14, 15 (either
31 the regular Article 15 system or the an optional retirement
32 program established under Section 15-158.2) or 18, or under
33 paragraph (b) or (c) of Section 16-106, of the Illinois
34 Pension Code, but such term does include persons who are
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1 employed during the 6 month qualifying period under Article
2 14 of the Illinois Pension Code. Such term also includes any
3 person who (1) after January 1, 1966, is receiving ordinary
4 or accidental disability benefits under Articles 2, 14, 15
5 (including ordinary or accidental disability benefits under
6 the an optional retirement program established under Section
7 15-158.2), paragraphs (b) or (c) of Section 16-106, or
8 Article 18 of the Illinois Pension Code, for disability
9 incurred after January 1, 1966, (2) receives total permanent
10 or total temporary disability under the Workers' Compensation
11 Act or Occupational Disease Act as a result of injuries
12 sustained or illness contracted in the course of employment
13 with the State of Illinois, or (3) is not otherwise covered
14 under this Act and has retired as a participating member
15 under Article 2 of the Illinois Pension Code but is
16 ineligible for the retirement annuity under Section 2-119 of
17 the Illinois Pension Code. However, a person who satisfies
18 the criteria of the foregoing definition of "employee" except
19 that such person is made ineligible to participate in the
20 State Universities Retirement System by clause (4) of the
21 first paragraph of Section 15-107 of the Illinois Pension
22 Code is also an "employee" for the purposes of this Act.
23 "Employee" also includes any person receiving or eligible for
24 benefits under a sick pay plan established in accordance with
25 Section 36 of the State Finance Act. "Employee" also includes
26 each officer or employee in the service of a qualified local
27 government, including persons appointed as trustees of
28 sanitary districts regardless of hours devoted to the service
29 of the sanitary district, and each employee in the service of
30 a qualified rehabilitation facility and each full-time
31 employee in the service of a qualified domestic violence
32 shelter or service, as determined according to rules
33 promulgated by the Director.
34 (l) "Member" means an employee, annuitant, retired
-7- LRB9000602EGfgam16
1 employee or survivor.
2 (m) "Optional coverages or benefits" means those
3 coverages or benefits available to the member on his or her
4 voluntary election, and at his or her own expense.
5 (n) "Program" means the group life insurance, health
6 benefits and other employee benefits designed and contracted
7 for by the Director under this Act.
8 (o) "Health plan" means a self-insured health insurance
9 program offered by the State of Illinois for the purposes of
10 benefiting employees by means of providing, among others,
11 wellness programs, utilization reviews, second opinions and
12 medical fee reviews, as well as for paying for hospital and
13 medical care up to the maximum coverage provided by the plan,
14 to its members and their dependents.
15 (p) "Retired employee" means any person who would be an
16 annuitant as that term is defined herein but for the fact
17 that such person retired prior to January 1, 1966. Such term
18 also includes any person formerly employed by the University
19 of Illinois in the Cooperative Extension Service who would be
20 an annuitant but for the fact that such person was made
21 ineligible to participate in the State Universities
22 Retirement System by clause (4) of the first paragraph of
23 Section 15-107 of the Illinois Pension Code.
24 (q) "Survivor" means a person receiving an annuity as a
25 survivor of an employee or of an annuitant. "Survivor" also
26 includes: (1) the surviving dependent of a person who
27 satisfies the definition of "employee" except that such
28 person is 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; and
31 (2) the surviving dependent of any person formerly employed
32 by the University of Illinois in the Cooperative Extension
33 Service who would be an annuitant except for the fact that
34 such person was made ineligible to participate in the State
-8- LRB9000602EGfgam16
1 Universities Retirement System by clause (4) of the first
2 paragraph of Section 15-107 of the Illinois Pension Code.
3 (r) "Medical services" means the services provided
4 within the scope of their licenses by practitioners in all
5 categories licensed under the Medical Practice Act of 1987.
6 (s) "Unit of local government" means any county,
7 municipality, township, school district, special district or
8 other unit, designated as a unit of local government by law,
9 which exercises limited governmental powers or powers in
10 respect to limited governmental subjects, any not-for-profit
11 association with a membership that primarily includes
12 townships and township officials, that has duties that
13 include provision of research service, dissemination of
14 information, and other acts for the purpose of improving
15 township government, and that is funded wholly or partly in
16 accordance with Section 85-15 of the Township Code; any
17 not-for-profit corporation or association, with a membership
18 consisting primarily of municipalities, that operates its own
19 utility system, and provides research, training,
20 dissemination of information, or other acts to promote
21 cooperation between and among municipalities that provide
22 utility services and for the advancement of the goals and
23 purposes of its membership; and the Illinois Association of
24 Park Districts. "Qualified local government" means a unit of
25 local government approved by the Director and participating
26 in a program created under subsection (i) of Section 10 of
27 this Act.
28 (t) "Qualified rehabilitation facility" means any
29 not-for-profit organization that is accredited by the
30 Commission on Accreditation of Rehabilitation Facilities or
31 certified by the Department of Mental Health and
32 Developmental Disabilities to provide services to persons
33 with disabilities and which receives funds from the State of
34 Illinois for providing those services, approved by the
-9- LRB9000602EGfgam16
1 Director and participating in a program created under
2 subsection (j) of Section 10 of this Act.
3 (u) "Qualified domestic violence shelter or service"
4 means any Illinois domestic violence shelter or service and
5 its administrative offices funded by the Illinois Department
6 of Public Aid, approved by the Director and participating in
7 a program created under subsection (k) of Section 10.
8 (v) "TRS benefit recipient" means a person who:
9 (1) is not a "member" as defined in this Section;
10 and
11 (2) is receiving a monthly benefit or retirement
12 annuity under Article 16 of the Illinois Pension Code;
13 and
14 (3) either (i) has at least 8 years of creditable
15 service under Article 16 of the Illinois Pension Code, or
16 (ii) was enrolled in the health insurance program offered
17 under that Article on January 1, 1996, or (iii) is the
18 survivor of a benefit recipient who had at least 8 years
19 of creditable service under Article 16 of the Illinois
20 Pension Code or was enrolled in the health insurance
21 program offered under that Article on the effective date
22 of this amendatory Act of 1995, or (iv) is a recipient or
23 survivor of a recipient of a disability benefit under
24 Article 16 of the Illinois Pension Code.
25 (w) "TRS dependent beneficiary" means a person who:
26 (1) is not a "member" or "dependent" as defined in
27 this Section; and
28 (2) is a TRS benefit recipient's: (A) spouse, (B)
29 dependent parent who is receiving at least half of his or
30 her support from the TRS benefit recipient, or (C)
31 unmarried natural or adopted child who is (i) under age
32 19, or (ii) enrolled as a full-time student in an
33 accredited school, financially dependent upon the TRS
34 benefit recipient, eligible as a dependent for Illinois
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1 State income tax purposes, and either is under age 24 or
2 was, on January 1, 1996, participating as a dependent
3 beneficiary in the health insurance program offered under
4 Article 16 of the Illinois Pension Code, or (iii) age 19
5 or over who is mentally or physically handicapped as
6 defined in the Illinois Insurance Code.
7 (x) "Military leave with pay and benefits" refers to
8 individuals in basic training for reserves, special/advanced
9 training, annual training, emergency call up, or activation
10 by the President of the United States with approved pay and
11 benefits.
12 (y) "Military leave without pay and benefits" refers to
13 individuals who enlist for active duty in a regular component
14 of the U.S. Armed Forces or other duty not specified or
15 authorized under military leave with pay and benefits.
16 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
17 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
18 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-628,
19 eff. 8-9-96; revised 8-23-96.)
20 (Text of Section after amendment by P.A. 89-507)
21 Sec. 3. Definitions. Unless the context otherwise
22 requires, the following words and phrases as used in this Act
23 shall have the following meanings. The Department may define
24 these and other words and phrases separately for the purpose
25 of implementing specific programs providing benefits under
26 this Act.
27 (a) "Administrative service organization" means any
28 person, firm or corporation experienced in the handling of
29 claims which is fully qualified, financially sound and
30 capable of meeting the service requirements of a contract of
31 administration executed with the Department.
32 (b) "Annuitant" means (1) an employee who retires, or
33 has retired, on or after January 1, 1966 on an immediate
34 annuity under the provisions of Articles 2, 14, 15 (including
-11- LRB9000602EGfgam16
1 an employee who has retired and is receiving a retirement
2 annuity under the an optional retirement program established
3 under Section 15-158.2 and who would also be eligible for a
4 retirement annuity had that person been a participant in the
5 State 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
-12- LRB9000602EGfgam16
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 the an optional retirement program established under Section
14 15-158.2), paragraphs (b) or (c) of Section 16-106, or
15 Article 18 of the Illinois Pension Code, for disability
16 incurred after January 1, 1966, or benefits payable under the
17 Workers' Compensation or Occupational Diseases Act or
18 benefits payable under a sick pay plan established in
19 accordance with Section 36 of the State Finance Act.
20 "Compensation" also means salary or wages paid to an employee
21 of any qualified local government or qualified rehabilitation
22 facility or a qualified domestic 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
-13- LRB9000602EGfgam16
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
-14- LRB9000602EGfgam16
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 the an optional retirement
29 program established under Section 15-158.2) or 18, or under
30 paragraph (b) or (c) of Section 16-106, of the Illinois
31 Pension Code, but such term does include persons who are
32 employed during the 6 month qualifying period under Article
33 14 of the Illinois Pension Code. Such term also includes any
34 person who (1) after January 1, 1966, is receiving ordinary
-15- LRB9000602EGfgam16
1 or accidental disability benefits under Articles 2, 14, 15
2 (including ordinary or accidental disability benefits under
3 the an optional retirement program established under Section
4 15-158.2), paragraphs (b) or (c) of Section 16-106, or
5 Article 18 of the Illinois Pension Code, for disability
6 incurred after January 1, 1966, (2) receives total permanent
7 or total temporary disability under the Workers' Compensation
8 Act or Occupational Disease Act as a result of injuries
9 sustained or illness contracted in the course of employment
10 with the State of Illinois, or (3) is not otherwise covered
11 under this Act and has retired as a participating member
12 under Article 2 of the Illinois Pension Code but is
13 ineligible for the retirement annuity under Section 2-119 of
14 the Illinois Pension Code. However, a person who satisfies
15 the criteria of the foregoing definition of "employee" except
16 that such person is made ineligible to participate in the
17 State Universities Retirement System by clause (4) of the
18 first paragraph of Section 15-107 of the Illinois Pension
19 Code is also an "employee" for the purposes of this Act.
20 "Employee" also includes any person receiving or eligible for
21 benefits under a sick pay plan established in accordance with
22 Section 36 of the State Finance Act. "Employee" also includes
23 each 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
-16- LRB9000602EGfgam16
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
-17- LRB9000602EGfgam16
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 Human Services (as successor
29 to the Department of Mental Health and Developmental
30 Disabilities) to provide services to persons with
31 disabilities and which receives funds from the State of
32 Illinois for providing those services, approved by the
33 Director and participating in a program created under
34 subsection (j) of Section 10 of this Act.
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1 (u) "Qualified domestic violence shelter or service"
2 means any Illinois domestic violence shelter or service and
3 its administrative offices funded by the Department of Human
4 Services (as successor to the Illinois Department of Public
5 Aid), approved by the Director and participating in a program
6 created under subsection (k) of Section 10.
7 (v) "TRS benefit recipient" means a person who:
8 (1) is not a "member" as defined in this Section;
9 and
10 (2) is receiving a monthly benefit or retirement
11 annuity under Article 16 of the Illinois Pension Code;
12 and
13 (3) either (i) has at least 8 years of creditable
14 service under Article 16 of the Illinois Pension Code, or
15 (ii) was enrolled in the health insurance program offered
16 under that Article on January 1, 1996, or (iii) is the
17 survivor of a benefit recipient who had at least 8 years
18 of creditable service under Article 16 of the Illinois
19 Pension Code or was enrolled in the health insurance
20 program offered under that Article on the effective date
21 of this amendatory Act of 1995, or (iv) is a recipient or
22 survivor of a recipient of a disability benefit under
23 Article 16 of the Illinois Pension Code.
24 (w) "TRS dependent beneficiary" means a person who:
25 (1) is not a "member" or "dependent" as defined in
26 this Section; and
27 (2) is a TRS benefit recipient's: (A) spouse, (B)
28 dependent parent who is receiving at least half of his or
29 her support from the TRS benefit recipient, or (C)
30 unmarried natural or adopted child who is (i) under age
31 19, or (ii) enrolled as a full-time student in an
32 accredited school, financially dependent upon the TRS
33 benefit recipient, eligible as a dependent for Illinois
34 State income tax purposes, and either is under age 24 or
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1 was, on January 1, 1996, participating as a dependent
2 beneficiary in the health insurance program offered under
3 Article 16 of the Illinois Pension Code, or (iii) age 19
4 or over who is mentally or physically handicapped as
5 defined in the Illinois Insurance Code.
6 (x) "Military leave with pay and benefits" refers to
7 individuals in basic training for reserves, special/advanced
8 training, annual training, emergency call up, or activation
9 by the President of the United States with approved pay and
10 benefits.
11 (y) "Military leave without pay and benefits" refers to
12 individuals who enlist for active duty in a regular component
13 of the U.S. Armed Forces or other duty not specified or
14 authorized under military leave with pay and benefits.
15 (Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
16 89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
17 8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-507,
18 eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)
19 Section 10. The Illinois Pension Code is amended by
20 changing Sections 15-107, 15-134, 15-136, 15-141, 15-142,
21 15-146, 15-154, 15-157, 15-158.2, and 15-165 and adding
22 Section 15-136.4 as follows:
23 (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
24 Sec. 15-107. Employee.
25 (a) "Employee" means any member of the educational,
26 administrative, secretarial, clerical, mechanical, labor or
27 other staff of an employer whose employment is permanent and
28 continuous or who is employed in a position in which services
29 are expected to be rendered on a continuous basis for at
30 least 4 months or one academic term, whichever is less, who
31 (A) receives payment for personal services on a warrant
32 issued pursuant to a payroll voucher certified by an employer
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1 and drawn by the State Comptroller upon the State Treasurer
2 or by an employer upon trust, federal or other funds, or (B)
3 is on a leave of absence without pay. Employment which is
4 irregular, intermittent or temporary shall not be considered
5 continuous for purposes of this paragraph.
6 However, a person is not an "employee" if he or she:
7 (1) is a student enrolled in and regularly
8 attending classes in a college or university which is an
9 employer, and is employed on a temporary basis at less
10 than full time;
11 (2) is currently receiving a retirement annuity or
12 a disability retirement annuity under Section 15-153.2
13 from this System;
14 (3) is on a military leave of absence;
15 (4) is eligible to participate in the Federal Civil
16 Service Retirement System and is currently making
17 contributions to that system based upon earnings paid by
18 an employer;
19 (5) is on leave of absence without pay for more
20 than 60 days immediately following termination of
21 disability benefits under this Article;
22 (6) is hired after June 30, 1979 as a public
23 service employment program participant under the Federal
24 Comprehensive Employment and Training Act and receives
25 earnings in whole or in part from funds provided under
26 that Act;
27 (7) is employed on or after July 1, 1991 to perform
28 services that are excluded by subdivision (a)(7)(f) or
29 (a)(19) of Section 210 of the federal Social Security Act
30 from the definition of employment given in that Section
31 (42 U.S.C. 410); or
32 (8) participates in an optional program for
33 part-time workers under Section 15-158.1.; or
34 (9) participates in an optional program for
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1 employees under Section 15-158.2.
2 (b) Any employer may, by filing a written notice with
3 the board, exclude from the definition of "employee" all
4 persons employed pursuant to a federally funded contract
5 entered into after July 1, 1982 with a federal military
6 department in a program providing training in military
7 courses to federal military personnel on a military site
8 owned by the United States Government, if this exclusion is
9 not prohibited by the federally funded contract or federal
10 laws or rules governing the administration of the contract.
11 (c) Any person appointed by the Governor under the Civil
12 Administrative Code of the State is an employee, if he or she
13 is a participant in this system on the effective date of the
14 appointment.
15 (d) A participant on lay-off status under civil service
16 rules is considered an employee for not more than 120 days
17 from the date of the lay-off.
18 (e) A participant is considered an employee during (1)
19 the first 60 days of disability leave, (2) the period, not to
20 exceed one year, in which his or her eligibility for
21 disability benefits is being considered by the board or
22 reviewed by the courts, and (3) the period he or she receives
23 disability benefits under the provisions of Section 15-152,
24 workers' compensation or occupational disease benefits, or
25 disability income under an insurance contract financed wholly
26 or partially by the employer.
27 (f) Absences without pay, other than formal leaves of
28 absence, of less than 30 calendar days, are not considered as
29 an interruption of a person's status as an employee. If such
30 absences during any period of 12 months exceed 30 work days,
31 the employee status of the person is considered as
32 interrupted as of the 31st work day.
33 (g) A staff member whose employment contract requires
34 services during an academic term is to be considered an
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1 employee during the summer and other vacation periods, unless
2 he or she declines an employment contract for the succeeding
3 academic term or his or her employment status is otherwise
4 terminated, and he or she receives no earnings during these
5 periods.
6 (Source: P.A. 89-430, eff. 12-15-95.)
7 (40 ILCS 5/15-134) (from Ch. 108 1/2, par. 15-134)
8 Sec. 15-134. Participant.
9 (a) Each person shall, as a condition of employment,
10 become a participant and be subject to this Article on the
11 date that he or she becomes an employee, makes an election to
12 participate in, or otherwise becomes a participant in one of
13 the retirement programs offered under this Article, whichever
14 date is later.
15 An employee who becomes a participant shall continue to
16 be a participant until he or she becomes an annuitant, dies
17 or accepts a refund of contributions, except that a person
18 shall not be deemed a participant while participating in an
19 optional program for part-time workers established under
20 Section 15-158.1 or participating in an optional program for
21 employees established under Section 15-158.2.
22 (b) A person employed concurrently by 2 or more
23 employers is eligible to participate in the system on
24 compensation received from all employers; however, his or her
25 combined basic compensation and combined earnings shall not
26 exceed the basic compensation and earnings which would have
27 been payable for full-time employment by the employer under
28 which the employee's basic compensation is the highest.
29 However, effective for all employment on or after July 1,
30 1991, where a person is employed to render service to one
31 employer during an academic or summer term and is employed by
32 another employer to render service to it during the
33 succeeding, nonoverlapping academic or summer term, then
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1 exclusively for the purposes of this Section, the person
2 shall be considered to be successively employed by more than
3 one employer, rather than concurrently employed by 2 or more
4 employers.
5 (Source: P.A. 89-430, eff. 12-15-95.)
6 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
7 Sec. 15-136. Retirement annuities - Amount.
8 (a) The amount of the retirement annuity shall be
9 determined by whichever of the following rules is applicable
10 and provides the largest annuity:
11 Rule 1: The retirement annuity shall be 1.67% of final
12 rate of earnings for each of the first 10 years of service,
13 1.90% for each of the next 10 years of service, 2.10% for
14 each year of service in excess of 20 but not exceeding 30,
15 and 2.30% for each year in excess of 30, except that the
16 annuity for those persons having made an election under
17 Section 15-154(a-1) shall be calculated and payable under the
18 portable retirement benefit program pursuant to the
19 provisions of Section 15-136.4.
20 Rule 2: The retirement annuity shall be the sum of the
21 following, determined from amounts credited to the
22 participant in accordance with the actuarial tables and the
23 prescribed rate of interest in effect at the time the
24 retirement annuity begins:
25 (i) The normal annuity which can be provided on an
26 actuarially actuarial equivalent basis, by the accumulated
27 normal contributions as of the date the annuity begins; and
28 (ii) an annuity from employer contributions of an amount
29 which can be provided on an actuarially equivalent basis from
30 the accumulated normal contributions made by the participant
31 under Section 15-113.6 and Section 15-113.7 plus 1.4 times
32 all other accumulated normal contributions made by the
33 participant, except that the annuity for those persons having
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1 made an election under Section 15-154(a-1) shall be
2 calculated and payable under the portable retirement benefit
3 program pursuant to the provisions of Section 15-136.4.
4 Rule 3: The retirement annuity of a participant who is
5 employed at least one-half time during the period on which
6 his or her final rate of earnings is based, shall be equal to
7 the participant's years of service not to exceed 30,
8 multiplied by (1) $96 if the participant's final rate of
9 earnings is less than $3,500, (2) $108 if the final rate of
10 earnings is at least $3,500 but less than $4,500, (3) $120 if
11 the final rate of earnings is at least $4,500 but less than
12 $5,500, (4) $132 if the final rate of earnings is at least
13 $5,500 but less than $6,500, (5) $144 if the final rate of
14 earnings is at least $6,500 but less than $7,500, (6) $156 if
15 the final rate of earnings is at least $7,500 but less than
16 $8,500, (7) $168 if the final rate of earnings is at least
17 $8,500 but less than $9,500, and (8) $180 if the final rate
18 of earnings is $9,500 or more, except that the annuity for
19 those persons having made an election under Section
20 15-154(a-1) shall be calculated and payable under the
21 portable retirement benefit program pursuant to the
22 provisions of Section 15-136.4.
23 Rule 4: A participant who is at least age 50 and has 25
24 or more years of service as a police officer or firefighter,
25 and a participant who is age 55 or over and has at least 20
26 but less than 25 years of service as a police officer or
27 firefighter, shall be entitled to a retirement annuity of 2
28 1/4% of the final rate of earnings for each of the first 10
29 years of service as a police officer or firefighter, 2 1/2%
30 for each of the next 10 years of service as a police officer
31 or firefighter, and 2 3/4% for each year of service as a
32 police officer or firefighter in excess of 20, except that
33 the annuity for those persons have made an election under
34 Section 15-154(a-1) shall be calculated and payable under the
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1 portable retirement benefit program pursuant to the
2 provisions of Section 15-136.4. The retirement annuity for
3 all other service shall be computed under Rule 1, payable
4 under the portable retirement benefit program pursuant to the
5 provisions of Section 15-136.4, if applicable.
6 (b) The retirement annuity provided under Rules 1 and 3
7 above shall be reduced by 1/2 of 1% for each month the
8 participant is under age 60 at the time of retirement.
9 However, this reduction shall not apply in the following
10 cases:
11 (1) For a disabled participant whose disability
12 benefits have been discontinued because he or she has
13 exhausted eligibility for disability benefits under
14 clause (6) (5) of Section 15-152;
15 (2) For a participant who has at least 35 years of
16 service; or
17 (3) For that portion of a retirement annuity which
18 has been provided on account of service of the
19 participant during periods when he or she performed the
20 duties of a police officer or firefighter, if these
21 duties were performed for at least 5 years immediately
22 preceding the date the retirement annuity is to begin.
23 (c) The maximum retirement annuity provided under Rules
24 1, 2, and 4 shall be the lesser of (1) the annual limit of
25 benefits as specified in Section 415 of the Internal Revenue
26 Code of 1986, as such Section may be amended from time to
27 time and as such benefit limits shall be adjusted by the
28 Commissioner of Internal Revenue, and (2) 75% of final rate
29 of earnings; however, this limitation of 75% of final rate of
30 earnings shall not apply to a person who is a participant or
31 annuitant on September 15, 1977 if it results in a retirement
32 annuity less than that which is payable to the annuitant or
33 which would have been payable to the participant under the
34 provisions of this Article in effect on June 30, 1977.
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1 (d) An annuitant whose status as an employee terminates
2 after August 14, 1969 shall receive automatic increases in
3 his or her retirement annuity as follows:
4 Effective January 1 immediately following the date the
5 retirement annuity begins, the annuitant shall receive an
6 increase in his or her monthly retirement annuity of 0.125%
7 of the monthly retirement annuity provided under Rule 1, Rule
8 2, Rule 3, or Rule 4, contained in this Section, multiplied
9 by the number of full months which elapsed from the date the
10 retirement annuity payments began to January 1, 1972, plus
11 0.1667% of such annuity, multiplied by the number of full
12 months which elapsed from January 1, 1972, or the date the
13 retirement annuity payments began, whichever is later, to
14 January 1, 1978, plus 0.25% of such annuity multiplied by the
15 number of full months which elapsed from January 1, 1978, or
16 the date the retirement annuity payments began, whichever is
17 later, to the effective date of the increase.
18 The annuitant shall receive an increase in his or her
19 monthly retirement annuity on each January 1 thereafter
20 during the annuitant's life of 3% of the monthly annuity
21 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
22 this Section. The change made under this subsection by P.A.
23 81-970 is effective January 1, 1980 and applies to each
24 annuitant whose status as an employee terminates before or
25 after that date.
26 Beginning January 1, 1990, all automatic annual increases
27 payable under this Section shall be calculated as a
28 percentage of the total annuity payable at the time of the
29 increase, including all increases previously granted under
30 this Article. The change made in this subsection by P.A.
31 85-1008 is effective January 26, 1988, and is applicable
32 without regard to whether status as an employee terminated
33 before that date.
34 (e) If, on January 1, 1987, or the date the retirement
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1 annuity payment period begins, whichever is later, the sum of
2 the retirement annuity provided under Rule 1 or Rule 2 of
3 this Section and the automatic annual increases provided
4 under the preceding subsection or Section 15-136.1, amounts
5 to less than the retirement annuity which would be provided
6 by Rule 3, the retirement annuity shall be increased as of
7 January 1, 1987, or the date the retirement annuity payment
8 period begins, whichever is later, to the amount which would
9 be provided by Rule 3 of this Section. Such increased amount
10 shall be considered as the retirement annuity in determining
11 benefits provided under other Sections of this Article. This
12 paragraph applies without regard to whether status as an
13 employee terminated before the effective date of this
14 amendatory Act of 1987, provided that the annuitant was
15 employed at least one-half time during the period on which
16 the final rate of earnings was based.
17 (f) A participant is entitled to such additional annuity
18 as may be provided on an actuarially actuarial equivalent
19 basis, by any accumulated additional contributions to his or
20 her credit. However, the additional contributions made by
21 the participant toward the automatic increases in annuity
22 provided under this Section shall not be taken into account
23 in determining the amount of such additional annuity.
24 (g) If, (1) by law, a function of a governmental unit,
25 as defined by Section 20-107 of this Code, is transferred in
26 whole or in part to an employer, and (2) a participant
27 transfers employment from such governmental unit to such
28 employer within 6 months after the transfer of the function,
29 and (3) the sum of (A) the annuity payable to the participant
30 under Rule 1, 2, or 3 of this Section (B) all proportional
31 annuities payable to the participant by all other retirement
32 systems covered by Article 20, and (C) the initial primary
33 insurance amount to which the participant is entitled under
34 the Social Security Act, is less than the retirement annuity
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1 which would have been payable if all of the participant's
2 pension credits validated under Section 20-109 had been
3 validated under this system, a supplemental annuity equal to
4 the difference in such amounts shall be payable to the
5 participant.
6 (h) On January 1, 1981, an annuitant who was receiving a
7 retirement annuity on or before January 1, 1971 shall have
8 his or her retirement annuity then being paid increased $1
9 per month for each year of creditable service. On January 1,
10 1982, an annuitant whose retirement annuity began on or
11 before January 1, 1977, shall have his or her retirement
12 annuity then being paid increased $1 per month for each year
13 of creditable service.
14 (i) On January 1, 1987, any annuitant whose retirement
15 annuity began on or before January 1, 1977, shall have the
16 monthly retirement annuity increased by an amount equal to 8¢
17 per year of creditable service times the number of years that
18 have elapsed since the annuity began.
19 (Source: P.A. 86-272; 86-273; 86-1028; revised 5-17-96.)
20 (40 ILCS 5/15-136.4 new)
21 Sec. 15-136.4. Portable Retirement Benefit Program.
22 (a) For purposes of this Section, "eligible spouse"
23 means the husband or wife of a participant to whom the
24 participant is married on the date the participant's annuity
25 begins. However, if the participant should die prior to the
26 date the annuity would have begun, then "eligible spouse"
27 means the husband or wife, if any, to whom the participant
28 was married throughout the one-year period preceding the date
29 of his or her death.
30 (b) If a participant has an eligible spouse on the date
31 his or her annuity payments commence, the annuity shall be
32 paid in the form of a 50% joint and survivor annuity unless
33 the participant elects otherwise in writing and his or her
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1 eligible spouse consents to that election. Under a 50% joint
2 and survivor annuity, a reduced amount shall be paid to the
3 participant for his or her lifetime and his or her eligible
4 spouse, if surviving at the participant's death, shall be
5 entitled to receive thereafter a lifetime survivorship
6 annuity in a monthly amount equal to 50% of the reduced
7 monthly amount that was payable to the participant. The
8 reduced amount payable to the participant under the 50% joint
9 and survivor annuity shall be determined so that the
10 aggregate of the annuity payments expected to be made to the
11 participant and his or her eligible spouse is the actuarial
12 equivalent of a single-life annuity. The last payment of a
13 50% joint and survivor annuity shall be made as of the first
14 day of the month in which the death of the survivor occurs.
15 (c) Instead of the 50% joint and survivor annuity, a
16 participant may elect in writing, within the 90-day period
17 prior to the date his or her annuity payments commence, and
18 only with the consent of his or her eligible spouse, to
19 receive a monthly amount in the form of a single-life
20 annuity. A participant may also elect instead an optional
21 form of benefit under subsection (k). However, if the
22 participant does elect an optional form of benefit under
23 subsection (k) and if the contingent annuitant under the
24 option is not the participant's eligible spouse, then the
25 optional election shall be canceled and the annuity shall be
26 paid in the form of a 50% joint and survivor annuity unless,
27 within the 90-day period preceding the annuity commencement
28 date, the eligible spouse consents to the optional election.
29 (d) A participant may also revoke any election made
30 under this Section at any time during the 90-day period
31 preceding the date the participant's annuity commences if the
32 purpose of such revocation is to reinstate coverage under the
33 50% joint and survivor annuity.
34 (e) The eligible spouse's consent to any election made
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1 pursuant to this Section that requires the eligible spouse's
2 consent shall be in writing and shall acknowledge the effect
3 of the consent. In addition, the eligible spouse's signature
4 on the written consent must be witnessed by a notary public.
5 The eligible spouse's consent need not be obtained if the
6 system is satisfied that there is no eligible spouse, that
7 the eligible spouse cannot be located, or because of any
8 other relevant circumstances. An eligible spouse's consent
9 under this Section is valid only with respect to the
10 specified alternate contingent annuitant designated by the
11 participant. If the alternate contingent annuitant is
12 subsequently changed, a new consent by the eligible spouse is
13 required. The eligible spouse's consent to an election made
14 by a participant pursuant to this Section, once made, may not
15 be revoked by the eligible spouse.
16 (f) Within a reasonable period of time preceding the
17 date a participant's annuity commences, a participant shall
18 be supplied with a written explanation of (1) the terms and
19 conditions of the 50% joint and survivor annuity, (2) the
20 participant's right, if any, to elect a single-life annuity
21 or an optional form of payment under subsection (k) in lieu
22 of the 50% joint and survivor annuity and subject, in certain
23 cases, to his or her eligible spouse's consent, and (3) the
24 participant's right to reinstate coverage under the 50% joint
25 and survivor annuity prior to his or her annuity commencement
26 date by revoking an election of a single-life annuity or an
27 optional form of benefit under subsection (k).
28 (g) If a participant does not have an eligible spouse
29 on the date his or her annuity payments commence, the
30 participant shall receive a single-life annuity, subject to
31 his or her right, if any, to elect an optional form of
32 benefit. The last payment of the single-life annuity shall be
33 made as of the first day of the month in which the death of
34 the participant occurs.
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1 (h) A participant with a least 5 years of service whose
2 employment has not terminated shall be covered by the 50%
3 joint and survivor annuity provisions so that if he or she
4 dies prior to termination of employment, his or her eligible
5 spouse will be entitled to receive an annuity. The annuity
6 payable under this subsection (h) to the eligible spouse
7 shall be actuarially equivalent to the amount that would be
8 payable as a survivor annuity under subsection (b) if (1) in
9 the case of a participant who dies after the date on which
10 the participant attained the earliest retirement age, the
11 participant had retired with an immediate qualified joint and
12 survivor annuity on the day before the participant's date of
13 death; or (2) in the case of a participant who dies on or
14 before the date on which the participant would have attained
15 the earliest retirement age, the participant had separated
16 from service on the date of death, survived to the earliest
17 retirement age, retired with an immediate qualified joint and
18 survivor annuity at the earliest retirement age, and died on
19 the day after the day on which the participant would have
20 attained the earliest retirement age.
21 The annuity payable to an eligible spouse of a
22 participant shall commence as of the beginning of the month
23 next following the later of the date of death or the date the
24 participant would have met the eligibility requirements for
25 an annuity and shall continue through the beginning of the
26 month in which the death of the eligible spouse occurs.
27 No benefit shall be payable under this subsection (h) for
28 death during employment after the participant has satisfied
29 the requirements for retirement if an option is effective
30 under subsection (k).
31 (i) A participant who (1) has terminated employment with
32 at least 5 years of service, (2) has not begun receiving
33 annuity payments, (3) has not taken a refund under Section
34 15-154(a-2), and (4) has not elected an effective option
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1 under subsection (k), shall be covered by the 50% joint and
2 survivor annuity provisions of subsection (b) until the date
3 his or her annuity payments commence. If the participant
4 dies before the date his or her annuity payments commence,
5 the participant's surviving eligible spouse shall receive an
6 annuity computed in accordance with the applicable provisions
7 of this Section as if the participant's annuity payments had
8 commenced on the first day of the month coincident with or
9 next following the later of his or her date of death or the
10 date the participant would have been eligible for a
11 retirement annuity based on service prior to his or her
12 death. The annuity payable to such an eligible spouse shall
13 commence on the first day of the month coincident with or
14 next following the later of the participant's date of death
15 or the date the participant would have been eligible for a
16 retirement annuity based on service prior to his death and
17 shall continue through the beginning of the month in which
18 the death of the eligible spouse occurs.
19 (j) The provisions of subsection (i) shall not affect
20 the right of a participant to elect a single-life annuity,
21 pursuant to the provisions of subsection (b).
22 (k) By filing a timely election with the system, a
23 participant who will be eligible to receive a retirement
24 annuity under this Section may designate his or her spouse or
25 any person approved by the system as his or her contingent
26 annuitant and elect to receive an annuity payable in
27 accordance with one of the following options, instead of the
28 annuity to which he or she may otherwise become entitled:
29 Option 1: The participant shall receive a reduced
30 annuity payable for life, and payments in the amount of
31 100% of such reduced amount shall, after the
32 participant's death, be continued to the contingent
33 annuitant during the latter's lifetime.
34 Option 2: The participant shall receive a reduced
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1 annuity payable for life, and payments in the amount of
2 75% of such reduced annuity shall, after the
3 participant's death, be continued to the contingent
4 annuitant during the latter's lifetime.
5 Option 3: The participant shall receive a reduced
6 annuity payable for life, and payments in the amount of
7 50% of such reduced annuity shall, after the
8 participant's death, be continued to the contingent
9 annuitant during the latter's lifetime.
10 The aggregate of the annuity payments expected to be paid
11 to a participant and his contingent annuitant under any of
12 the above options shall be the actuarial equivalent of the
13 annuity that the participant is otherwise entitled to receive
14 upon retirement.
15 Under no circumstances may an option be elected, changed,
16 or revoked after the date the participant's annuity
17 commences. An option in favor of a contingent annuitant who
18 is not the participant's eligible spouse may be revoked at
19 any time prior to the date the participant's annuity payments
20 commence. If the contingent annuitant under the elected
21 option is not the participant's eligible spouse, then the
22 election is valid only if the eligible spouse consents to the
23 participant's optional election and to the specific
24 contingent annuitant within the 90-day period preceding the
25 date the participant's annuity commences.
26 An election made pursuant to this subsection (k) shall
27 become inoperative if the participant's employment terminates
28 before he or she is eligible for a retirement annuity, or if
29 the participant or the contingent annuitant dies before the
30 date the participant's annuity payments commence, or if the
31 eligible spouse's consent is required and not given. An
32 effective option under this subsection (k) takes the place of
33 any benefit otherwise payable under this Section, and the
34 form made available by the system for election of the option
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1 shall so specify.
2 (1) Within the appropriate applicable period under
3 Section 417 of the Internal Revenue Code of 1986, as amended
4 from time to time, a participant shall be supplied with a
5 written explanation of (1) the terms and conditions of the
6 preretirement survivor annuity under subsections (h) and (i),
7 (2) the participant's right, if any, to elect a single-life
8 annuity or an optional form of payment under subsection (k)
9 in lieu of the preretirement survivor annuity and subject, in
10 certain cases, to his or her eligible spouse's consent, and
11 (3) the participant's right to reinstate coverage under the
12 preretirement survivor annuity by revoking an election of a
13 single-life annuity or an optional form of benefit under
14 subsection (k).
15 (40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
16 Sec. 15-141. Death benefits - Death of participant. The
17 beneficiary of a participant is entitled to a death benefit
18 equal to the sum of (1) the employee's accumulated normal and
19 additional contributions on the date of death, (2) the
20 employee's accumulated survivors insurance contributions on
21 the date of death, if a survivors insurance benefit is not
22 payable, (3) an amount equal to the employee's final rate of
23 earnings, but not more than $5,000 if (i) the beneficiary,
24 under rules of the board, was dependent upon the participant,
25 (ii) the participant was a participating employee immediately
26 prior to his or her death, and (iii) a survivors insurance
27 benefit is not payable, and (4) $2,500 if (i) the beneficiary
28 was not dependent upon the participant, (ii) the participant
29 was a participating employee immediately prior to his or her
30 death, and (iii) a survivors insurance benefit is not
31 payable.
32 However, if the participant has elected to participate in
33 the portable retirement benefit program by making the
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1 election specified in Section 15-154(a-1), the death benefit
2 shall be calculated as follows. The death benefit shall be
3 equal to the employee's accumulated normal and additional
4 contributions on the date of death, or if the employee died
5 with 5 or more years of service for employment as defined in
6 Section 15-113.1, his or her beneficiary shall also be
7 entitled to employer contributions in an amount equal to the
8 sum of accumulated normal and additional contributions;
9 except that if a benefit to a surviving spouse is payable
10 under Section 15-136.4, the death benefit payable under this
11 paragraph shall be reduced, but to not less than zero, by the
12 actuarial value of the benefit payable to the surviving
13 spouse.
14 If payments are made under any State or Federal Workers'
15 Compensation or Occupational Diseases Law because of the
16 death of an employee, the portion of the death benefit
17 payable from employer contributions shall be reduced by the
18 total amount of the payments.
19 (Source: P.A. 87-8.)
20 (40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142)
21 Sec. 15-142. Death benefits - Death of annuitant. Upon
22 the death of an annuitant receiving a retirement annuity or
23 disability retirement annuity, the annuitant's beneficiary
24 shall, if a survivor's insurance benefit is not payable under
25 Section 15-145 or an annuity is not payable under Section
26 15-136.4, be entitled to a death benefit equal to the greater
27 of the following: (1) the excess, if any, of the sum of the
28 accumulated normal, survivors insurance and additional
29 contributions as of the date of retirement, or the date the
30 disability retirement annuity began, whichever is earlier,
31 over the sum of all annuity payments made prior to the date
32 of death, or (2) $1,000.
33 (Source: P.A. 83-1440.)
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1 (40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
2 Sec. 15-146. Survivors insurance benefits - Minimum
3 amounts.
4 (a) The minimum total survivors annuity payable on
5 account of the death of a participant shall be 50% of the
6 retirement annuity which would have been provided under Rule
7 1, Rule 2, or Rule 3 of Section 15-136 upon the participant's
8 attainment of the minimum age at which the penalty for early
9 retirement would not be applicable or the date of the
10 participant's death, whichever is later, on the basis of
11 credits earned prior to the time of death.
12 (b) The minimum total survivors annuity payable on
13 account of the death of an annuitant shall be 50% of the
14 retirement annuity which is payable under Section 15-136 at
15 the time of death or 50% of the disability retirement annuity
16 payable under Section 15-153.2. This minimum survivors
17 annuity shall apply to each participant and annuitant who
18 dies after September 16, 1979, whether or not his or her
19 employee status terminates before or after that date.
20 (c) If an annuitant has elected a reversionary annuity,
21 the retirement annuity referred to in this Section is that
22 which would have been payable had such election not been
23 filed.
24 (d) If a participant has made the election provided for
25 under Section 15-154(a-1), the minimum survivor benefit shall
26 be determined under Section 15-136.4.
27 (Source: P.A. 83-1362; 83-1440.)
28 (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
29 Sec. 15-154. Refunds.
30 (a) A participant whose status as an employee is
31 terminated, regardless of cause, or who has been on lay off
32 status for more than 120 days, and who is not on leave of
33 absence, is entitled to a refund of contributions upon
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1 application; except that not more than one such refund
2 application may be made during any academic year.
3 Except as set forth in subsections (a-1) and (a-2), the
4 refund shall be the sum of the accumulated normal, additional
5 and survivors insurance contributions, less the amount of
6 interest credited on these contributions each year in excess
7 of 4 1/2% of the amount on which interest was calculated.
8 (a-1) Every person who becomes a participating employee
9 after the date on which his or her employer first offers an
10 optional retirement program under Section 15-158.2 may elect
11 within 60 days of becoming a participant to have any refund
12 calculated pursuant to subsection (a-2) by forgoing all
13 survivors insurance benefits to which the person's survivors
14 would otherwise be entitled under this Article. This
15 election is irrevocable and may be made by filing an election
16 with the system on such form as the Executive Director shall
17 prescribe.
18 Each person who is a participating employee on the date
19 on which his or her employer first offers an optional
20 retirement program under Section 15-158.2 shall have a
21 one-time option to elect to have his or her refund calculated
22 pursuant to subsection (a-2), by forgoing all survivors
23 insurance benefits to which the person's survivors would
24 otherwise be entitled under this Article. The election will
25 not be effective until one year after the election is filed
26 with the system. This election is irrevocable and may be
27 made by filing an election with the system, on such form as
28 the Executive Director shall prescribe, within one year after
29 the date on which his or her employer first offers an
30 optional retirement program under Section 15-158.2.
31 A person may make the one-time irrevocable election
32 authorized under this Section or the election authorized
33 under Section 15-158.2(g), but may not make both elections.
34 Any person interested in electing the portable retirement
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1 benefit program provided under this Section and Section
2 15-136.4 must be given a consultation with the State
3 Universities Retirement System before making that election.
4 (a-2) The refund elected under subsection (a-1) shall be
5 the sum of the participant's accumulated normal and
6 additional contributions, as defined in Sections 15-116 and
7 15-117. If the participant terminates with 5 or more years
8 of service for employment as defined in Section 15-113.1, he
9 or she shall also be entitled to a refund of employer
10 contributions in an amount equal to the sum of the
11 accumulated normal and additional contributions, as defined
12 in Sections 15-116 and 15-117.
13 (b) Upon acceptance of a refund, the participant
14 forfeits all accrued rights and credits in the System, and if
15 subsequently reemployed, the participant shall be considered
16 a new employee subject to all the qualifying conditions for
17 participation and eligibility for benefits applicable to new
18 employees. If such person again becomes a participating
19 employee and continues as such for 2 years, or is employed by
20 an employer and participates for at least 2 years in the
21 Federal Civil Service Retirement System, all such rights,
22 credits, and previous status as a participant shall be
23 restored upon repayment of the amount of the refund, together
24 with compound interest thereon from the date the refund was
25 received to the date of repayment at the rate of 6% per annum
26 through August 31, 1982, and at the effective rates after
27 that date.
28 (c) If a participant has made survivors insurance
29 contributions, but has no survivors insurance beneficiary
30 upon retirement, he or she shall be entitled to a refund of
31 the accumulated survivors insurance contributions, or to an
32 additional annuity the value of which is equal to the
33 accumulated survivors insurance contributions.
34 (d) A participant, upon application, is entitled to a
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1 refund of his or her accumulated additional contributions
2 except those covering the cost of the annual increase in the
3 retirement annuity provided under Section 15-136. Upon the
4 acceptance of such a refund of accumulated additional
5 contributions, the participant forfeits all rights and
6 credits which may have accrued because of such contributions.
7 (e) A participant who terminates his or her employee
8 status and elects to waive service credit under Section
9 15-154.2, is entitled to a refund of the accumulated normal,
10 additional and survivors insurance contributions, if any,
11 which were credited the participant for this service, or to
12 an additional annuity the value of which is equal to the
13 accumulated normal, additional and survivors insurance
14 contributions, if any; except that not more than one such
15 refund application may be made during any academic year. Upon
16 acceptance of this refund, the participant forfeits all
17 rights and credits accrued because of this service.
18 (f) If a police officer or firefighter receives a
19 retirement annuity under Rule 1, 2, or 3 of Section 15-136,
20 he or she shall be entitled at retirement to a refund of the
21 difference between his or her accumulated normal
22 contributions and the normal contributions which would have
23 accumulated had such person filed a waiver of the retirement
24 formula provided by Rule 4 of Section 15-136.
25 (g) If, at the time of retirement, a participant would
26 be entitled to a retirement annuity under Rule 1, 2, 3 or 4
27 of Section 15-136 that exceeds the maximum specified in
28 clause (1) of subsection (c) of Section 15-136, he or she
29 shall be entitled to a refund of the employee contributions,
30 if any, paid under Section 15-157 after the date upon which
31 continuance of such contributions would have otherwise caused
32 the retirement annuity to exceed this maximum, plus compound
33 interest at the effective rates.
34 (Source: P.A. 87-8; 87-794; 87-895; 87-1265; 88-45.)
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1 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
2 Sec. 15-157. Employee Contributions.
3 (a) Each participating employee shall make contributions
4 towards the retirement annuity of each payment of earnings
5 applicable to employment under this system on and after the
6 date of becoming a participant as follows: Prior to
7 September 1, 1949, 3 1/2% of earnings; from September 1, 1949
8 to August 31, 1955, 5%; from September 1, 1955 to August 31,
9 1969, 6%; from September 1, 1969, 6 1/2%. These
10 contributions are to be considered as normal contributions
11 for purposes of this Article.
12 Each participant who is a police officer or firefighter
13 shall make normal contributions of 8% of each payment of
14 earnings applicable to employment as a police officer or
15 firefighter under this system on or after September 1, 1981,
16 unless he or she files with the board within 60 days after
17 the effective date of this amendatory Act of 1991 or 60 days
18 after the board receives notice that he or she is employed as
19 a police officer or firefighter, whichever is later, a
20 written notice waiving the retirement formula provided by
21 Rule 4 of Section 15-136. This waiver shall be irrevocable.
22 If a participant had met the conditions set forth in Section
23 15-132.1 prior to the effective date of this amendatory Act
24 of 1991 but failed to make the additional normal
25 contributions required by this paragraph, he or she may elect
26 to pay the additional contributions plus compound interest at
27 the effective rate. If such payment is received by the
28 board, the service shall be considered as police officer
29 service in calculating the retirement annuity under Rule 4 of
30 Section 15-136.
31 (b) Starting September 1, 1969, each participating
32 employee shall make additional contributions of 1/2 of 1% of
33 earnings to finance a portion of the cost of the annual
34 increases in retirement annuity provided under Section
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1 15-136.
2 (c) Each participating employee shall make additional
3 survivors insurance contributions of 1% of earnings
4 applicable under this system on and after August 1, 1959.
5 The contribution made under this subsection shall be used to
6 finance survivors insurance benefits, unless the participant
7 has made an election under Section 15-154(a-1), in which case
8 the contribution made under this subsection shall be used to
9 finance the benefits obtained under that election.
10 Contributions in excess of $80 during any fiscal year
11 beginning August 31, 1969 and in excess of $120 during any
12 fiscal year thereafter until September 1, 1971 shall be
13 considered as additional contributions for purposes of this
14 Article.
15 (d) If the board by board rule so permits and subject to
16 such conditions and limitations as may be specified in its
17 rules, a participant may make other additional contributions
18 of such percentage of earnings or amounts as the participant
19 shall elect in a written notice thereof received by the
20 board.
21 (e) That fraction of a participant's total accumulated
22 normal contributions, the numerator of which is equal to the
23 number of years of service in excess of that which is
24 required to qualify for the maximum retirement annuity, and
25 the denominator of which is equal to the total service of the
26 participant, shall be considered as accumulated additional
27 contributions. The determination of the applicable maximum
28 annuity and the adjustment in contributions required by this
29 provision shall be made as of the date of the participant's
30 retirement.
31 (f) Notwithstanding the foregoing, a participating
32 employee shall not be required to make contributions under
33 this Section after the date upon which continuance of such
34 contributions would otherwise cause his or her retirement
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1 annuity to exceed the maximum retirement annuity as specified
2 in clause (1) of subsection (c) of Section 15-136.
3 (Source: P.A. 86-272; 86-1488.)
4 (40 ILCS 5/15-158.2)
5 Sec. 15-158.2. Optional retirement program for
6 educational employees.
7 (a) Purpose. The General Assembly finds that it is
8 important for colleges and universities to be able to attract
9 and retain the most qualified employees and that in order to
10 attract and retain these employees, colleges and universities
11 should have the flexibility to provide an alternative
12 retirement program for eligible employees persons who elect
13 not to participate in the other retirement programs plan of
14 contributions and benefits otherwise provided under this
15 Article.
16 (b) Definitions. For the purposes of this Section,
17 "eligible employee person" means an employee who is eligible
18 to participate in the State Universities University
19 Retirement System without respect to Section 15-107(a)(9) and
20 who does not have sufficient age and service to qualify for a
21 retirement annuity under Section 15-135. A "currently
22 eligible employee person" is an employee a person who becomes
23 an eligible employee person on the effective date of the
24 optional retirement program established by the employee's
25 person's employer. A "newly eligible employee person" is an
26 employee a person who becomes an eligible employee person
27 after the effective date of the optional retirement program
28 established by the employee's person's employer.
29 (c) Program. Each employer subject to this Article may
30 elect to establish an optional retirement program under this
31 Section for the eligible employees whom persons that it
32 employs. The optional retirement program shall provide
33 retirement benefits for participating employees persons
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1 through the purchase of annuity contracts, either fixed or
2 variable or a combination thereof, through the purchase of
3 mutual funds, or through both and shall may also provide for
4 death and disability benefits.
5 The State Universities Retirement System shall be the
6 plan sponsor for the program. Consistent with its fiduciary
7 duty to the participants and beneficiaries of the program,
8 the Board of Trustees of the System may delegate aspects of
9 program administration as it sees fit to The program may
10 provide for administration of the program by companies
11 authorized to do business in this State, to or the employers,
12 employer or to a combination of both, but shall not require
13 any action by the State Universities Retirement System or its
14 Board of Trustees. Two or more employers may agree to
15 establish a joint program under this Section.
16 The plan program must be qualified under the Internal
17 Revenue Code of 1986.
18 (d) Proposals. The System, in consultation with the
19 employers, An employer under this Section shall solicit
20 proposals to participate in the program from insurance and
21 annuity companies and mutual fund companies authorized to do
22 conduct such business in this State. In reviewing the
23 proposals received and approving and contracting with no
24 fewer than 2 and no more than 7 companies, at least 2 of
25 which must be insurance and annuity companies, the Board of
26 Trustees of the System deciding to implement a program, the
27 employer shall consider, among other things, the following
28 criteria:
29 (1) the nature and extent of the benefits that
30 would be provided to the participants;
31 (2) the reasonableness of the benefits in relation
32 to the premium charged;
33 (3) the suitability of the benefits to the needs
34 and interests of the participating employees persons and
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1 the employer;
2 (4) the ability of the company to provide benefits
3 under the contract and the financial stability of the
4 company; and
5 (5) the efficacy of the contract in the recruitment
6 and retention of employees.
7 An employer that elects to offer an optional retirement
8 program under subsection (c) may only select for
9 participation in the program 2 or more of the companies
10 approved by the Board of Trustees of the System. The System,
11 in consultation with the employers, shall periodically review
12 each approved company; a company may continue to participate
13 in the program only so long as it continues to be an approved
14 company under contract with the Board.
15 (e) System Conflict of Interest. In order to preclude
16 any conflict of interest by the System, only insurance and
17 annuity companies and mutual fund companies that are
18 authorized to do business in this State may be approved, in
19 accordance with the procedures of subsection (d), to
20 participate in this program and offer investment options for
21 program participants.
22 (f) Account Balance Transfers. Employees who are
23 participating in the program must be allowed to transfer
24 their account balances from the investment options offered by
25 one of the companies selected by the employer to the
26 investment options offered by another company so selected,
27 subject to applicable contractual provisions.
28 (g) (e) Participation. Any eligible employee person
29 employed by an employer may elect to participate in the
30 optional retirement program offered by the employer under
31 subsection (c) that employer's optional retirement program.
32 The election must be made in writing and in the manner
33 prescribed by the System employer. A currently eligible
34 employee person must make take this election within one year
-45- LRB9000602EGfgam16
1 after the effective date of the employer's optional
2 retirement program. A newly eligible employee person must
3 make take this election within 60 days after becoming an
4 eligible employee person. A person may make the one-time
5 irrevocable election authorized under this Section or the
6 election authorized under Section 15-154(a-1), but may not
7 make both elections. The employer shall not remit
8 contributions on behalf of a newly eligible employee to
9 either the optional retirement program or to the State
10 Universities Retirement System until the 60-day period has
11 run unless an election by the employee has been made earlier.
12 Any eligible employee person interested in electing the
13 optional retirement program provided under this Section must
14 be given a consultation with the State Universities
15 Retirement System before making that an election.
16 Participation in the optional retirement program shall
17 begin on the first day of the first pay period following the
18 date of election, but no earlier than January 1, 1998 July 1,
19 1996. The employee's person's participation in any other
20 retirement program administered by the System under this
21 Article the System, if any, with respect to the qualifying
22 employment shall terminate on the date that participation in
23 the optional retirement program begins, and the employee
24 person shall thereby be deemed to have elected to receive a
25 refund of contributions as provided in Section 15-154, except
26 that such deemed refund shall include interest at the
27 effective rate for the respective years, and except that any
28 funds which would have been received shall instead be
29 transferred directly to the optional retirement program as a
30 tax free transfer in accordance with Internal Revenue Service
31 guidelines.
32 Notwithstanding any other provision of this Code, an
33 employee a person may not purchase or receive service or
34 service credit applicable to any other retirement program
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1 administered by the System under this Article in this System
2 for any period during which the employee was a participant
3 person was not a participant in the System due to an election
4 to participate in the an optional retirement program
5 established under this Section.
6 An employee A person who has elected to participate in
7 the an optional retirement program under this Section must
8 continue participation while employed in an eligible
9 position, and may not participate in any other retirement
10 program administered by the System under this Article return
11 to participation in this System while employed by that
12 employer, unless the optional retirement program is
13 terminated in accordance with subsection (i) (g).
14 Participation in the optional retirement program under
15 this Section shall constitute membership in the State
16 Universities Retirement System, although a participant under
17 this Section shall not be entitled to receive any benefits
18 under any other provisions of Article 15 or of Article 20.
19 An employee who receives a disability benefit or a retirement
20 benefit under this Section or an employee who receives a lump
21 sum distribution from a mutual fund company under this
22 Section and uses the lump sum to purchase an annuity shall be
23 considered an employee or an annuitant under Article 15 for
24 purposes of the State Employees Group Insurance Act of 1971.
25 Participation in the optional retirement program under this
26 Section creates a contractual relationship with respect to
27 the investment of the employee's account balance between the
28 employee and the company providing the investment options for
29 the employee's account balance. Participation does not
30 create a contractual relationship between the employee and
31 the System or between the employee and his or her employer.
32 Participation in an optional retirement program
33 established under this Section does not constitute membership
34 or participation in the State Universities Retirement System
-47- LRB9000602EGfgam16
1 or any other pension fund or retirement system of the State.
2 Participation in an optional retirement program established
3 under this Section creates a contractual relationship only
4 between the person and the company providing the optional
5 retirement program, and not between the person and the System
6 or the person's employer.
7 (h) (f) Contributions. The contribution rate for
8 employees persons participating in the an optional retirement
9 program under this Section shall be equal to the employee
10 contribution rate for other participants in the System. This
11 required contribution may be made as an "employer pick-up"
12 under Section 414(h) of the Internal Revenue Code of 1986 or
13 any successor Section. Any employee person participating in
14 the System or who elects to participate in the optional
15 retirement program shall continue to have the employer
16 "pick-up" the contribution. However, amounts picked up after
17 the election of the optional retirement program shall be
18 remitted to the optional retirement plan. In no event shall
19 an employee have an option of receiving these amounts in
20 cash. The program shall provide for employer contributions
21 at a rate of no more than 7.6% of the participating
22 employee's person's salary. The An optional retirement
23 program shall be funded by contributions from employees
24 persons participating in the program and employer
25 contributions as required by the plan. The plan shall be
26 funded in a manner consistent with the requirements of the
27 Internal Revenue Code Section 412, and regulations
28 promulgated thereunder, and Proposed Regulation 412(b)-1(a)
29 as that Section applies those Sections apply to money
30 purchase plans.
31 The State of Illinois shall make contributions by
32 appropriations to the System of the employer contributions
33 required for employees who participate in the optional
34 retirement program under this Section. The amount required
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1 shall be certified by the Board of Trustees of the System and
2 paid by the State in accordance with Section 15-165. The
3 System shall not be obligated to remit the required employer
4 contributions to any insurance and annuity and mutual fund
5 companies participating in the optional retirement program
6 under subsection (d) until it has received the required
7 employer contributions from the State. In the event of a
8 deficiency in the amount of State contributions, the System
9 shall implement those procedures described in subsection (c)
10 of Section 15-165 to obtain the required funding from the
11 General Revenue Fund.
12 The contributions and interest thereon, and any benefits
13 based upon them, shall be treated as provided in the funding
14 vehicles for this plan. An amount of up to 1% of each
15 participating employee's participant's salary shall may be
16 taken from the employer contribution to the optional
17 retirement program and shall may be contributed, on the
18 employee's participant's behalf, to a plan which the System
19 offers employer sets up to provide for life or disability
20 benefits.
21 (i) (g) Termination. An optional retirement program
22 authorized established under this Section may be terminated
23 by the employer, subject to the terms of any relevant
24 contracts, and the employer shall have no obligation to
25 reestablish an optional retirement renew any contract or
26 program established under this Section. This Section does
27 not create a right to continued continue participation in any
28 optional retirement program set up by an employer established
29 under this Section. If an optional retirement program is
30 terminated, the participants shall have the right to
31 participate in one of the other retirement programs offered
32 by the System and receive service credit in such other
33 retirement program for any years of employment following the
34 termination.
-49- LRB9000602EGfgam16
1 (j) (h) Vesting. Employer contributions shall be vested
2 after five years of employment. If an employee a participant
3 terminates employment prior to completing five years of
4 service, the employee participant shall be entitled to a
5 benefit in accordance with the terms of the employer's
6 retirement plan which is based on the accumulation value
7 attributable to the employee's participant's contributions
8 and any investment return experience thereon. Benefits for
9 employees participants who terminate with at least five years
10 of service shall be in accordance with the terms of the
11 optional employer's retirement plan and based on the
12 accumulation value attributable to both the employer and the
13 employee's participant's contributions and any investment
14 return experience thereon. Any employer contributions which
15 are forfeited shall be held in escrow by the funding company
16 investing those contributions and shall be used to reduce the
17 next premium payment due from the employer.
18 (Source: P.A. 89-430, eff. 12-15-95.)
19 (40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
20 Sec. 15-165. To certify amounts and submit vouchers.
21 (a) The Board shall certify to the Governor on or before
22 November 15 of each year the appropriation required from
23 State funds for the purposes of this System for the following
24 fiscal year. The certification shall include a copy of the
25 actuarial recommendations upon which it is based.
26 (b) The Board shall certify to the State Comptroller or
27 employer, as the case may be, from time to time, by its
28 president and secretary, with its seal attached, the amounts
29 payable to the System from the various funds.
30 (c) Beginning in State fiscal year 1996, on or as soon
31 as possible after the 15th day of each month the Board shall
32 submit vouchers for payment of State contributions to the
33 System, in a total monthly amount of one-twelfth of the
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1 required annual State contribution certified under subsection
2 (a). These vouchers shall be paid by the State Comptroller
3 and Treasurer by warrants drawn on the funds appropriated to
4 the System for that fiscal year.
5 If in any month the amount remaining unexpended from all
6 other appropriations to the System for the applicable fiscal
7 year (including the appropriations to the System under
8 Section 8.12 of the State Finance Act and Section 1 of the
9 State Pension Funds Continuing Appropriation Act) is less
10 than the amount lawfully vouchered under this Section, the
11 difference shall be paid from the General Revenue Fund under
12 the continuing appropriation authority provided in Section
13 1.1 of the State Pension Funds Continuing Appropriation Act.
14 (d) So long as the payments received are the full amount
15 lawfully vouchered under this Section, payments received by
16 the System under this Section shall be applied first toward
17 the employer contribution to the optional retirement program
18 established under Section 15-158.2. Payments shall be
19 applied second toward the employer's portion of the normal
20 costs of the System, as defined in subsection (f) of Section
21 15-155. The balance shall be applied toward the unfunded
22 actuarial liabilities of the System.
23 (e) In the event that the System does not receive, as a
24 result of legislative enactment or otherwise, payments
25 sufficient to fully fund the employer contribution to the
26 optional retirement program established under Section
27 15-158.2 and to fully fund that portion of the employer's
28 portion of the normal costs of the System, as calculated in
29 accordance with Section 15-155(a-1), then any payments
30 received shall be applied proportionately to the optional
31 retirement program established under Section 15-158.2 and to
32 the employer's portion of the normal costs of the System, as
33 calculated in accordance with Section 15-155(a-1).
34 (Source: P.A. 88-593, eff. 8-22-94.)
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1 Section 15. The State Pension Funds Continuing
2 Appropriation Act is amended by changing Section 1.1 as
3 follows:
4 (40 ILCS 15/1.1)
5 Sec. 1.1. Appropriations to certain retirement systems.
6 (a) There is hereby appropriated from the General
7 Revenue Fund to the General Assembly Retirement System, on a
8 continuing monthly basis, the amount, if any, by which the
9 total available amount of all other appropriations to that
10 retirement system for the payment of State contributions is
11 less than the total amount of the vouchers for required State
12 contributions lawfully submitted by the retirement system for
13 that month under Section 2-134 of the Illinois Pension Code.
14 (b) There is hereby appropriated from the General
15 Revenue Fund to the State Universities Retirement System, on
16 a continuing monthly basis, the amount, if any, by which the
17 total available amount of all other appropriations to that
18 retirement system for the payment of State contributions,
19 including any deficiency in the required contributions of the
20 optional retirement program established under Section
21 15-158.2 of the Illinois Pension Code, is less than the total
22 amount of the vouchers for required State contributions
23 lawfully submitted by the retirement system for that month
24 under Section 15-165 of the Illinois Pension Code.
25 (c) There is hereby appropriated from the Common School
26 Fund to the Teachers' Retirement System of the State of
27 Illinois, on a continuing monthly basis, the amount, if any,
28 by which the total available amount of all other
29 appropriations to that retirement system for the payment of
30 State contributions is less than the total amount of the
31 vouchers for required State contributions lawfully submitted
32 by the retirement system for that month under Section 16-158
33 of the Illinois Pension Code.
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1 (d) There is hereby appropriated from the General
2 Revenue Fund to the Judges Retirement System of Illinois, on
3 a continuing monthly basis, the amount, if any, by which the
4 total available amount of all other appropriations to that
5 retirement system for the payment of State contributions is
6 less than the total amount of the vouchers for required State
7 contributions lawfully submitted by the retirement system for
8 that month under Section 18-140 of the Illinois Pension Code.
9 (e) The continuing appropriations provided by this
10 Section shall first be available in State fiscal year 1996.
11 (Source: P.A. 88-593, eff. 8-22-94.)"; and
12 by renumbering all subsequent Sections of the bill in
13 consecutive ascending multiples of 5, beginning with the
14 number 20.