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| [ House Amendment 003 ] |
90_SB0667ham002
LRB9000609EGfgam30
1 AMENDMENT TO SENATE BILL 667
2 AMENDMENT NO. . Amend Senate Bill 667, AS AMENDED,
3 by replacing the title with the following:
4 "AN ACT in relation to public employee retirement
5 benefits."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Property Tax Code is amended by changing
9 Section 18-185 as follows:
10 (35 ILCS 200/18-185)
11 Sec. 18-185. Short title; definitions. This Section and
12 Sections 18-190 through 18-245 may be cited as the Property
13 Tax Extension Limitation Law. As used in Sections 18-190
14 through 18-245:
15 "Consumer Price Index" means the Consumer Price Index for
16 All Urban Consumers for all items published by the United
17 States Department of Labor.
18 "Extension limitation" means (a) the lesser of 5% or the
19 percentage increase in the Consumer Price Index during the
20 12-month calendar year preceding the levy year or (b) the
21 rate of increase approved by voters under Section 18-205.
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1 "Affected county" means a county of 3,000,000 or more
2 inhabitants or a county contiguous to a county of 3,000,000
3 or more inhabitants.
4 "Taxing district" has the same meaning provided in
5 Section 1-150, except as otherwise provided in this Section.
6 For the 1991 through 1994 levy years only, "taxing district"
7 includes only each non-home rule taxing district having the
8 majority of its 1990 equalized assessed value within any
9 county or counties contiguous to a county with 3,000,000 or
10 more inhabitants. Beginning with the 1995 levy year, "taxing
11 district" includes only each non-home rule taxing district
12 subject to this Law before the 1995 levy year and each
13 non-home rule taxing district not subject to this Law before
14 the 1995 levy year having the majority of its 1994 equalized
15 assessed value in an affected county or counties. Beginning
16 with the levy year in which this Law becomes applicable to a
17 taxing district as provided in Section 18-213, "taxing
18 district" also includes those taxing districts made subject
19 to this Law as provided in Section 18-213.
20 "Aggregate extension" for taxing districts to which this
21 Law applied before the 1995 levy year means the annual
22 corporate extension for the taxing district and those special
23 purpose extensions that are made annually for the taxing
24 district, excluding special purpose extensions: (a) made for
25 the taxing district to pay interest or principal on general
26 obligation bonds that were approved by referendum; (b) made
27 for any taxing district to pay interest or principal on
28 general obligation bonds issued before October 1, 1991; (c)
29 made for any taxing district to pay interest or principal on
30 bonds issued to refund or continue to refund those bonds
31 issued before October 1, 1991; (d) made for any taxing
32 district to pay interest or principal on bonds issued to
33 refund or continue to refund bonds issued after October 1,
34 1991 that were approved by referendum; (e) made for any
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1 taxing district to pay interest or principal on revenue bonds
2 issued before October 1, 1991 for payment of which a property
3 tax levy or the full faith and credit of the unit of local
4 government is pledged; however, a tax for the payment of
5 interest or principal on those bonds shall be made only after
6 the governing body of the unit of local government finds that
7 all other sources for payment are insufficient to make those
8 payments; (f) made for payments under a building commission
9 lease when the lease payments are for the retirement of bonds
10 issued by the commission before October 1, 1991, to pay for
11 the building project; (g) made for payments due under
12 installment contracts entered into before October 1, 1991;
13 (h) made for payments of principal and interest on bonds
14 issued under the Metropolitan Water Reclamation District Act
15 to finance construction projects initiated before October 1,
16 1991; (i) made for payments of principal and interest on
17 limited bonds, as defined in Section 3 of the Local
18 Government Debt Reform Act, in an amount not to exceed the
19 debt service extension base less the amount in items (b),
20 (c), (e), and (h) of this definition for non-referendum
21 obligations, except obligations initially issued pursuant to
22 referendum; and (j) made for payments of principal and
23 interest on bonds issued under Section 15 of the Local
24 Government Debt Reform Act; and (k) made by a school district
25 that participates in the Special Education District of Lake
26 County, created by special education joint agreement under
27 Section 10-22.31 of the School Code, for payment of the
28 school district's share of the amounts required to be
29 contributed by the Special Education District of Lake County
30 to the Illinois Municipal Retirement Fund under Article 7 of
31 the Illinois Pension Code; the amount of any extension under
32 this item (k) shall be certified by the school district to
33 the county clerk.
34 "Aggregate extension" for the taxing districts to which
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1 this Law did not apply before the 1995 levy year (except
2 taxing districts subject to this Law in accordance with
3 Section 18-213) means the annual corporate extension for the
4 taxing district and those special purpose extensions that are
5 made annually for the taxing district, excluding special
6 purpose extensions: (a) made for the taxing district to pay
7 interest or principal on general obligation bonds that were
8 approved by referendum; (b) made for any taxing district to
9 pay interest or principal on general obligation bonds issued
10 before March 1, 1995; (c) made for any taxing district to pay
11 interest or principal on bonds issued to refund or continue
12 to refund those bonds issued before March 1, 1995; (d) made
13 for any taxing district to pay interest or principal on bonds
14 issued to refund or continue to refund bonds issued after
15 March 1, 1995 that were approved by referendum; (e) made for
16 any taxing district to pay interest or principal on revenue
17 bonds issued before March 1, 1995 for payment of which a
18 property tax levy or the full faith and credit of the unit of
19 local government is pledged; however, a tax for the payment
20 of interest or principal on those bonds shall be made only
21 after the governing body of the unit of local government
22 finds that all other sources for payment are insufficient to
23 make those payments; (f) made for payments under a building
24 commission lease when the lease payments are for the
25 retirement of bonds issued by the commission before March 1,
26 1995 to pay for the building project; (g) made for payments
27 due under installment contracts entered into before March 1,
28 1995; (h) made for payments of principal and interest on
29 bonds issued under the Metropolitan Water Reclamation
30 District Act to finance construction projects initiated
31 before October 1, 1991; (i) made for payments of principal
32 and interest on limited bonds, as defined in Section 3 of the
33 Local Government Debt Reform Act, in an amount not to exceed
34 the debt service extension base less the amount in items (b),
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1 (c), (e), and (h) of this definition for non-referendum
2 obligations, except obligations initially issued pursuant to
3 referendum; (j) made for payments of principal and interest
4 on bonds issued under Section 15 of the Local Government Debt
5 Reform Act; (k) made for payments of principal and interest
6 on bonds authorized by Public Act 88-503 and issued under
7 Section 20a of the Chicago Park District Act for aquarium or
8 museum projects; and (l) made for payments of principal and
9 interest on bonds authorized by Public Act 87-1191 and issued
10 under Section 42 of the Cook County Forest Preserve District
11 Act for zoological park projects.
12 "Aggregate extension" for all taxing districts to which
13 this Law applies in accordance with Section 18-213, except
14 for those taxing districts subject to paragraph (2) of
15 subsection (e) of Section 18-213, means the annual corporate
16 extension for the taxing district and those special purpose
17 extensions that are made annually for the taxing district,
18 excluding special purpose extensions: (a) made for the taxing
19 district to pay interest or principal on general obligation
20 bonds that were approved by referendum; (b) made for any
21 taxing district to pay interest or principal on general
22 obligation bonds issued before the date on which the
23 referendum making this Law applicable to the taxing district
24 is held; (c) made for any taxing district to pay interest or
25 principal on bonds issued to refund or continue to refund
26 those bonds issued before the date on which the referendum
27 making this Law applicable to the taxing district is held;
28 (d) made for any taxing district to pay interest or principal
29 on bonds issued to refund or continue to refund bonds issued
30 after the date on which the referendum making this Law
31 applicable to the taxing district is held if the bonds were
32 approved by referendum after the date on which the referendum
33 making this Law applicable to the taxing district is held;
34 (e) made for any taxing district to pay interest or principal
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1 on revenue bonds issued before the date on which the
2 referendum making this Law applicable to the taxing district
3 is held for payment of which a property tax levy or the full
4 faith and credit of the unit of local government is pledged;
5 however, a tax for the payment of interest or principal on
6 those bonds shall be made only after the governing body of
7 the unit of local government finds that all other sources for
8 payment are insufficient to make those payments; (f) made for
9 payments under a building commission lease when the lease
10 payments are for the retirement of bonds issued by the
11 commission before the date on which the referendum making
12 this Law applicable to the taxing district is held to pay for
13 the building project; (g) made for payments due under
14 installment contracts entered into before the date on which
15 the referendum making this Law applicable to the taxing
16 district is held; (h) made for payments of principal and
17 interest on limited bonds, as defined in Section 3 of the
18 Local Government Debt Reform Act, in an amount not to exceed
19 the debt service extension base less the amount in items (b),
20 (c), and (e) of this definition for non-referendum
21 obligations, except obligations initially issued pursuant to
22 referendum; (i) made for payments of principal and interest
23 on bonds issued under Section 15 of the Local Government Debt
24 Reform Act; and (j) made for a qualified airport authority to
25 pay interest or principal on general obligation bonds issued
26 for the purpose of paying obligations due under, or financing
27 airport facilities required to be acquired, constructed,
28 installed or equipped pursuant to, contracts entered into
29 before March 1, 1996 (but not including any amendments to
30 such a contract taking effect on or after that date).
31 "Aggregate extension" for all taxing districts to which
32 this Law applies in accordance with paragraph (2) of
33 subsection (e) of Section 18-213 means the annual corporate
34 extension for the taxing district and those special purpose
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1 extensions that are made annually for the taxing district,
2 excluding special purpose extensions: (a) made for the taxing
3 district to pay interest or principal on general obligation
4 bonds that were approved by referendum; (b) made for any
5 taxing district to pay interest or principal on general
6 obligation bonds issued before the effective date of this
7 amendatory Act of 1997; (c) made for any taxing district to
8 pay interest or principal on bonds issued to refund or
9 continue to refund those bonds issued before the effective
10 date of this amendatory Act of 1997; (d) made for any taxing
11 district to pay interest or principal on bonds issued to
12 refund or continue to refund bonds issued after the effective
13 date of this amendatory Act of 1997 if the bonds were
14 approved by referendum after the effective date of this
15 amendatory Act of 1997; (e) made for any taxing district to
16 pay interest or principal on revenue bonds issued before the
17 effective date of this amendatory Act of 1997 for payment of
18 which a property tax levy or the full faith and credit of the
19 unit of local government is pledged; however, a tax for the
20 payment of interest or principal on those bonds shall be made
21 only after the governing body of the unit of local government
22 finds that all other sources for payment are insufficient to
23 make those payments; (f) made for payments under a building
24 commission lease when the lease payments are for the
25 retirement of bonds issued by the commission before the
26 effective date of this amendatory Act of 1997 to pay for the
27 building project; (g) made for payments due under installment
28 contracts entered into before the effective date of this
29 amendatory Act of 1997; (h) made for payments of principal
30 and interest on limited bonds, as defined in Section 3 of the
31 Local Government Debt Reform Act, in an amount not to exceed
32 the debt service extension base less the amount in items (b),
33 (c), and (e) of this definition for non-referendum
34 obligations, except obligations initially issued pursuant to
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1 referendum; (i) made for payments of principal and interest
2 on bonds issued under Section 15 of the Local Government Debt
3 Reform Act; and (j) made for a qualified airport authority to
4 pay interest or principal on general obligation bonds issued
5 for the purpose of paying obligations due under, or financing
6 airport facilities required to be acquired, constructed,
7 installed or equipped pursuant to, contracts entered into
8 before March 1, 1996 (but not including any amendments to
9 such a contract taking effect on or after that date).
10 "Debt service extension base" means an amount equal to
11 that portion of the extension for a taxing district for the
12 1994 levy year, or for those taxing districts subject to this
13 Law in accordance with Section 18-213, except for those
14 subject to paragraph (2) of subsection (e) of Section 18-213,
15 for the levy year in which the referendum making this Law
16 applicable to the taxing district is held, or for those
17 taxing districts subject to this Law in accordance with
18 paragraph (2) of subsection (e) of Section 18-213 for the
19 1996 levy year, constituting an extension for payment of
20 principal and interest on bonds issued by the taxing district
21 without referendum, but not including (i) bonds authorized by
22 Public Act 88-503 and issued under Section 20a of the Chicago
23 Park District Act for aquarium and museum projects; (ii)
24 bonds issued under Section 15 of the Local Government Debt
25 Reform Act; or (iii) refunding obligations issued to refund
26 or to continue to refund obligations initially issued
27 pursuant to referendum. The debt service extension base may
28 be established or increased as provided under Section 18-212.
29 "Special purpose extensions" include, but are not limited
30 to, extensions for levies made on an annual basis for
31 unemployment and workers' compensation, self-insurance,
32 contributions to pension plans, and extensions made pursuant
33 to Section 6-601 of the Illinois Highway Code for a road
34 district's permanent road fund whether levied annually or
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1 not. The extension for a special service area is not
2 included in the aggregate extension.
3 "Aggregate extension base" means the taxing district's
4 last preceding aggregate extension as adjusted under Sections
5 18-215 through 18-230.
6 "Levy year" has the same meaning as "year" under Section
7 1-155.
8 "New property" means (i) the assessed value, after final
9 board of review or board of appeals action, of new
10 improvements or additions to existing improvements on any
11 parcel of real property that increase the assessed value of
12 that real property during the levy year multiplied by the
13 equalization factor issued by the Department under Section
14 17-30 and (ii) the assessed value, after final board of
15 review or board of appeals action, of real property not
16 exempt from real estate taxation, which real property was
17 exempt from real estate taxation for any portion of the
18 immediately preceding levy year, multiplied by the
19 equalization factor issued by the Department under Section
20 17-30.
21 "Qualified airport authority" means an airport authority
22 organized under the Airport Authorities Act and located in a
23 county bordering on the State of Wisconsin and having a
24 population in excess of 200,000 and not greater than 500,000.
25 "Recovered tax increment value" means the amount of the
26 current year's equalized assessed value, in the first year
27 after a municipality terminates the designation of an area as
28 a redevelopment project area previously established under the
29 Tax Increment Allocation Development Act in the Illinois
30 Municipal Code, previously established under the Industrial
31 Jobs Recovery Law in the Illinois Municipal Code, or
32 previously established under the Economic Development Area
33 Tax Increment Allocation Act, of each taxable lot, block,
34 tract, or parcel of real property in the redevelopment
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1 project area over and above the initial equalized assessed
2 value of each property in the redevelopment project area.
3 Except as otherwise provided in this Section, "limiting
4 rate" means a fraction the numerator of which is the last
5 preceding aggregate extension base times an amount equal to
6 one plus the extension limitation defined in this Section and
7 the denominator of which is the current year's equalized
8 assessed value of all real property in the territory under
9 the jurisdiction of the taxing district during the prior levy
10 year. For those taxing districts that reduced their
11 aggregate extension for the last preceding levy year, the
12 highest aggregate extension in any of the last 3 preceding
13 levy years shall be used for the purpose of computing the
14 limiting rate. The denominator shall not include new
15 property. The denominator shall not include the recovered
16 tax increment value.
17 (Source: P.A. 88-455; 89-1, eff. 2-12-95; 89-138, eff.
18 7-14-95; 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449,
19 eff. 6-1-96; 89-510, eff. 7-11-96; 89-718, eff. 3-7-97.)
20 Section 10. The Illinois Pension Code is amended by
21 changing Sections 1-113, 2-110, 3-110.2, 4-108.1, 5-230,
22 6-224, 7-132, 7-139.1, 7-141.1, 7-171, 8-138, 8-150.1, 8-154,
23 8-159, 8-226, 8-226.1, 9-121.1, 10-104.1, 11-125.1, 11-134,
24 11-145.1, 11-149, 11-154, 11-215, 12-127.1, 13-801,
25 14-103.04, 14-104, 14-105.1, 14-105.3, 15-112, 15-113.2,
26 15-113.3, 15-113.4, 15-113.7, 15-125, 15-134.2, 15-136.2,
27 15-143, 15-153.2, 15-157, 15-167.2, 15-185, 15-190, 15-191,
28 16-127, 16-131.1, 16-140, 17-114.1, 17-116.4, 18-112, and
29 18-112.1 and adding Sections 2-117.4, 8-138.3, 9-134.3,
30 11-133.2, 14-104.10, and 15-168.1 as follows:
31 (40 ILCS 5/1-113) (from Ch. 108 1/2, par. 1-113)
32 Sec. 1-113. Investment authority. The investment
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1 authority of a board of trustees of a retirement system or
2 pension fund established under this Code shall, if so
3 provided in the Article establishing such retirement system
4 or pension fund, embrace the following investments:
5 (1) Bonds, notes and other direct obligations of the
6 United States Government; bonds, notes and other obligations
7 of any United States Government agency or instrumentality,
8 whether or not guaranteed; and obligations the principal and
9 interest of which are guaranteed unconditionally by the
10 United States Government or by an agency or instrumentality
11 thereof.
12 (2) Obligations of the Inter-American Development Bank,
13 the International Bank for Reconstruction and Development,
14 the African Development Bank, the International Finance
15 Corporation, and the Asian Development Bank.
16 (3) Obligations of any state, or of any political
17 subdivision in Illinois, or of any county or city in any
18 other state having a population as shown by the last federal
19 census of not less than 30,000 inhabitants provided that such
20 political subdivision is not permitted by law to become
21 indebted in excess of 10% of the assessed valuation of
22 property therein and has not defaulted for a period longer
23 than 30 days in the payment of interest and principal on any
24 of its general obligations or indebtedness during a period of
25 10 calendar years immediately preceding such investment.
26 (4) Nonconvertible bonds, debentures, notes and other
27 corporate obligations of any corporation created or existing
28 under the laws of the United States or any state, district or
29 territory thereof, provided there has been no default on the
30 obligations of the corporation or its predecessor(s) during
31 the 5 calendar years immediately preceding the purchase. Up
32 to 5% of the assets of a pension fund established under
33 Article 9 of this Code may be invested in nonconvertible
34 bonds, debentures, notes, and other corporate obligations of
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1 corporations created or existing under the laws of a foreign
2 country, provided there has been no default on the
3 obligations of the corporation or its predecessors during the
4 5 calendar years immediately preceding the date of purchase.
5 (5) Obligations guaranteed by the Government of Canada,
6 or by any Province of Canada, or by any Canadian city with a
7 population of not less than 150,000 inhabitants, provided (a)
8 they are payable in United States currency and are exempt
9 from any Canadian withholding tax; (b) the investment in any
10 one issue of bonds shall not exceed 10% of the amount
11 outstanding; and (c) the total investments at book value in
12 Canadian securities shall be limited to 5% of the total
13 investment account of the board at book value.
14 (5.1) Direct obligations of the State of Israel for the
15 payment of money, or obligations for the payment of money
16 which are guaranteed as to the payment of principal and
17 interest by the State of Israel, or common or preferred stock
18 or notes issued by a bank owned or controlled in whole or in
19 part by the State of Israel, on the following conditions:
20 (a) The total investments in such obligations shall
21 not exceed 5% of the book value of the aggregate
22 investments owned by the board;
23 (b) The State of Israel shall not be in default in
24 the payment of principal or interest on any of its direct
25 general obligations on the date of such investment;
26 (c) The bonds, stock or notes, and interest thereon
27 shall be payable in currency of the United States;
28 (d) The bonds shall (1) contain an option for the
29 redemption thereof after 90 days from date of purchase or
30 (2) either become due 5 years from the date of their
31 purchase or be subject to redemption 120 days after the
32 date of notice for redemption;
33 (e) The investment in these obligations has been
34 approved in writing by investment counsel employed by the
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1 board, which counsel shall be a national or state bank or
2 trust company authorized to do a trust business in the
3 State of Illinois, or an investment advisor qualified
4 under the Federal Investment Advisors Act of 1940 and
5 registered under the Illinois Securities Act of 1953;
6 (f) The fund or system making the investment shall
7 have at least $5,000,000 of net present assets.
8 (6) Notes secured by mortgages under Sections 203, 207,
9 220 and 221 of the National Housing Act which are insured by
10 the Federal Housing Commissioner, or his successor assigns,
11 or debentures issued by such Commissioner, which are
12 guaranteed as to principal and interest by the Federal
13 Housing Administration, or agency of the United States
14 Government, provided the aggregate investment shall not
15 exceed 20% of the total investment account of the board at
16 book value, and provided further that the investment in such
17 notes under Sections 220 and 221 shall in no event exceed
18 one-half of the maximum investment in notes under this
19 paragraph.
20 (7) Loans to veterans guaranteed in whole or part by the
21 United States Government pursuant to Title III of the Act of
22 Congress known as the "Servicemen's Readjustment Act of
23 1944," 58 Stat. 284, 38 U.S.C. 693, as amended or
24 supplemented from time to time, provided such guaranteed
25 loans are liens upon real estate.
26 (8) Common and preferred stocks and convertible debt
27 securities authorized for investment of trust funds under the
28 laws of the State of Illinois, provided:
29 (a) the common stocks, except as provided in
30 subparagraph (h), are listed on a national securities
31 exchange as defined in the Federal Securities Exchange
32 Act, or quoted in the National Association of Securities
33 Dealers Automated Quotation System (NASDAQ);
34 (b) the securities are of a corporation created or
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1 existing under the laws of the United States or any
2 state, district or territory thereof, except that up to
3 5% of the assets of a pension fund established under
4 Article 9 of this Code may be invested in securities
5 issued by corporations created or existing under the laws
6 of a foreign country, if those securities are otherwise
7 in conformance with this paragraph (8);
8 (c) the corporation is not in arrears on payment of
9 dividends on its preferred stock;
10 (d) the total book value of all stocks and
11 convertible debt owned by any pension fund or retirement
12 system shall not exceed 40% of the aggregate book value
13 of all investments of such pension fund or retirement
14 system, except for a pension fund or retirement that
15 system governed by Article 9 or 17, where the total of
16 all stocks and convertible debt shall not exceed 50% of
17 the aggregate book value of all fund investments;
18 (e) the book value of stock and convertible debt
19 investments in any one corporation shall not exceed 5% of
20 the total investment account at book value in which such
21 securities are held, determined as of the date of the
22 investment, and the investments in the stock of any one
23 corporation shall not exceed 5% of the total outstanding
24 stock of such corporation, and the investments in the
25 convertible debt of any one corporation shall not exceed
26 5% of the total amount of such debt that may be
27 outstanding;
28 (f) the straight preferred stocks or convertible
29 preferred stocks and convertible debt securities are
30 issued or guaranteed by a corporation whose common stock
31 qualifies for investment by the board; and
32 (g) that any common stocks not listed or quoted as
33 provided in subdivision 8(a) above be limited to the
34 following types of institutions: (a) any bank which is a
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1 member of the Federal Deposit Insurance Corporation
2 having capital funds represented by capital stock,
3 surplus and undivided profits of at least $20,000,000;
4 (b) any life insurance company having capital funds
5 represented by capital stock, special surplus funds and
6 unassigned surplus totalling at least $50,000,000; and
7 (c) any fire or casualty insurance company, or a
8 combination thereof, having capital funds represented by
9 capital stock, net surplus and voluntary reserves of at
10 least $50,000,000.
11 (9) Withdrawable accounts of State chartered and federal
12 chartered savings and loan associations insured by the
13 Federal Savings and Loan Insurance Corporation; deposits or
14 certificates of deposit in State and national banks insured
15 by the Federal Deposit Insurance Corporation; and share
16 accounts or share certificate accounts in a State or federal
17 credit union, the accounts of which are insured as required
18 by The Illinois Credit Union Act or the Federal Credit Union
19 Act, as applicable.
20 No bank or savings and loan association shall receive
21 investment funds as permitted by this subsection (9), unless
22 it has complied with the requirements established pursuant to
23 Section 6 of the Public Funds Investment Act.
24 (10) Trading, purchase or sale of listed options on
25 underlying securities owned by the board.
26 (11) Contracts and agreements supplemental thereto
27 providing for investments in the general account of a life
28 insurance company authorized to do business in Illinois.
29 (12) Conventional mortgage pass-through securities which
30 are evidenced by interests in Illinois owner-occupied
31 residential mortgages, having not less than an "A" rating
32 from at least one national securities rating service. Such
33 mortgages may have loan-to-value ratios up to 95%, provided
34 that any amount over 80% is insured by private mortgage
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1 insurance. The pool of such mortgages shall be insured by
2 mortgage guaranty or equivalent insurance, in accordance with
3 industry standards.
4 (13) Pooled or commingled funds managed by a national or
5 State bank which is authorized to do a trust business in the
6 State of Illinois, shares of registered investment companies
7 as defined in the federal Investment Company Act of 1940
8 which are registered under that Act, and separate accounts of
9 a life insurance company authorized to do business in
10 Illinois, where such pooled or commingled funds, shares, or
11 separate accounts are comprised of common or preferred
12 stocks, bonds, or money market instruments.
13 (14) Pooled or commingled funds managed by a national or
14 state bank which is authorized to do a trust business in the
15 State of Illinois, separate accounts managed by a life
16 insurance company authorized to do business in Illinois, and
17 commingled group trusts managed by an investment adviser
18 registered under the federal Investment Advisors Act of 1940
19 (15 U.S.C. 80b-1 et seq.) and under the Illinois Securities
20 Law of 1953, where such pooled or commingled funds, separate
21 accounts or commingled group trusts are comprised of real
22 estate or loans upon real estate secured by first or second
23 mortgages. The total investment in such pooled or commingled
24 funds, commingled group trusts and separate accounts shall
25 not exceed 10% of the aggregate book value of all investments
26 owned by the fund.
27 (15) Investment companies which (a) are registered as
28 such under the Investment Company Act of 1940, (b) are
29 diversified, open-end management investment companies and (c)
30 invest only in money market instruments.
31 (16) Up to 10% of the assets of the fund may be invested
32 in investments not included in paragraphs (1) through (15) of
33 this Section, provided that such investments comply with the
34 requirements and restrictions set forth in Sections 1-109,
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1 1-109.1, 1-109.2, 1-110 and 1-111 of this Code.
2 The board shall have the authority to enter into such
3 agreements and to execute such documents as it determines to
4 be necessary to complete any investment transaction.
5 Any limitations herein set forth shall be applicable only
6 at the time of purchase and shall not require the liquidation
7 of any investment at any time.
8 All investments shall be clearly held and accounted for
9 to indicate ownership by such board. Such board may direct
10 the registration of securities in its own name or in the name
11 of a nominee created for the express purpose of registration
12 of securities by a national or state bank or trust company
13 authorized to conduct a trust business in the State of
14 Illinois.
15 Investments shall be carried at cost or at a book value
16 in accordance with accounting procedures approved by such
17 board. No adjustments shall be made in investment carrying
18 values for ordinary current market price fluctuations; but
19 reserves may be provided to account for possible losses or
20 unrealized gains as determined by such board.
21 The book value of investments held by any pension fund or
22 retirement system in one or more commingled investment
23 accounts shall be the cost of its units of participation in
24 such commingled account or accounts as recorded on the books
25 of such board.
26 (Source: P.A. 86-272; 87-575; 87-794; 87-895.)
27 (40 ILCS 5/2-110) (from Ch. 108 1/2, par. 2-110)
28 Sec. 2-110. Service.
29 (A) "Service" means the period beginning on the day when
30 a person first became a member, and ending on the date under
31 consideration, excluding all intervening periods of
32 nonmembership following resignation or expiration of any term
33 of office.
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1 (B) "Service" includes:
2 (a) Military service during war by a person who
3 entered such service while a member, whether rendered
4 before or after the expiration of any term of office;
5 plus up to 2 years of military service that need not have
6 immediately followed service as a member, and need not
7 have been served during wartime, provided that the member
8 makes contributions to the System for such service (1) at
9 the rates provided in Section 2-126 based upon the
10 member's rate of compensation on the last date as a
11 participant prior to such military service, or on the
12 first date as a participant after such military service,
13 whichever is greater, plus (2) if payment is made on or
14 after May 1, 1993, an amount determined by the Board to
15 be equal to the employer's normal cost of the benefits
16 accrued for such military service, plus (3) interest at
17 the effective rate from the date of first membership in
18 the System to the date of payment.
19 The amendment to this subdivision (B)(a) made by
20 this amendatory Act of 1993 shall apply to persons who
21 are active contributors to the System on or after
22 November 30, 1992. A person who was an active
23 contributor to the System on November 30, 1992 but is no
24 longer an active contributor may apply to purchase
25 military credit under this subdivision (B)(a) within 60
26 days after the effective date of this amendatory Act of
27 1993; if the person is an annuitant, the resulting
28 increase in annuity shall begin to accrue on the first
29 day of the month following the month in which the
30 required payment is received by the System. The change
31 in the required contribution for purchased military
32 credit made by this amendatory Act of 1993 shall not
33 entitle any person to a refund of contributions already
34 paid.
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1 (b) Service as a judge of a court of this State,
2 but credit for such service is subject to the following
3 conditions: (1) such person shall have been a member for
4 at least 4 years and contributed to the System for
5 service as a judge subsequent to July 8, 1947, at the
6 rates herein provided, including interest at 2% per annum
7 to the date of payment based on the salary in effect
8 during such service; (2) the member was not an eligible
9 member of nor entitled to credit for such service in any
10 other retirement system in the State maintained in whole
11 or in part by public contributions; and (3) the last 4
12 years of service prior to retirement on annuity was
13 rendered while a member.
14 (c) Service as a participating employee under
15 Articles 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16,
16 17 or 18 of the Illinois Pension Code. Credit for such
17 service may be established by a member and, if permitted
18 by the credit transfer Section of the appropriate
19 Article, by a former member who is not yet an annuitant,
20 and is subject to the following conditions: (1) that the
21 credits to be transferred accrued under the above
22 mentioned Articles have been received by transferred to
23 this System; and (2) that the member has contributed to
24 this System an amount equal to (i) the contribution rate
25 in effect for participants at the date of membership in
26 this System multiplied by the salary then in effect for
27 members of the General Assembly for each year of service
28 for which credit is being transferred, plus (ii) the
29 State's share of the normal cost of benefits under this
30 System expressed as a percent of payroll, as determined
31 by the System's actuary as of the date of the
32 participant's membership in this System, multiplied by
33 the salary then in effect for members of the General
34 Assembly, for each year of service for which credit is
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1 being transferred, plus (iii) interest on items (i) and
2 (ii) above at 6% per annum compounded annually, from the
3 date of membership to the date of payment by the
4 participant, less (iv) the amount transferred to this
5 System on behalf of the participant on account of service
6 rendered while a participant under the above mentioned
7 Articles.
8 (d) Service, before October 1, 1975, as an officer
9 elected by the people of Illinois, for which creditable
10 service is required to be transferred from the State
11 Employees' Retirement System to this System by this
12 amendatory Act of 1975.
13 (e) Service rendered prior to January 1, 1964, as a
14 justice of the peace or police magistrate or as a civil
15 referee in the Municipal Court of Chicago, but credit for
16 such service may not be granted until the member has paid
17 to the System an amount equal to (1) the contribution
18 rate for participants at the date of membership in this
19 System multiplied by the salary then in effect for
20 members of the General Assembly for each year of service
21 for which credit is being transferred, plus (2) the
22 State's share of the normal cost of benefits under this
23 System expressed as a percent of payroll, as determined
24 by the System's actuary as of the date of the
25 participant's membership in this System, multiplied by
26 the salary then in effect for members of the General
27 Assembly, for each year of service for which credit is
28 allowed, plus, (3) interest on (1) and (2) above at 6%
29 per annum compounded annually from the date of membership
30 to the date of payment by the member. However, a
31 participant may not receive more than 6 years of credit
32 for such service nor may any member receive credit under
33 this paragraph for service for which credit has been
34 granted in any other public pension fund or retirement
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1 system in the State.
2 (f) Service before January 16, 1981, as an officer
3 elected by the people of Illinois, for which creditable
4 service is transferred from the State Employees'
5 Retirement System to this System.
6 (C) Service during any fraction of a month shall be
7 considered as a month of service.
8 Service includes the total period of time for which a
9 participant is elected as a member or officer, even though he
10 or she does not complete the term because of death,
11 resignation, judicial decision, or operation of law, provided
12 that the contributions required under this Article for such
13 entire period of office have been made by or on behalf of the
14 participant. In the case of a participant appointed or
15 elected to fill a vacancy, service includes the total period
16 from January 1 of the year in which his or her service
17 commences to the end of the term in which the vacancy occurs,
18 provided the participant contributes in the year of
19 appointment an amount equal to the contributions that would
20 have been required had the participant received salary for
21 the entire year. The foregoing provisions relating to a
22 participant appointed or elected to fill a vacancy shall not
23 apply if the participant was a member of the other
24 legislative chamber at the time of appointment or election.
25 (D) Notwithstanding the other provisions of this
26 Section, if application to transfer or establish service
27 credit under paragraph (c) or (e) of subsection (B) of this
28 Section is made between June 1, 1997 and June 1, 1998, both
29 inclusive January 1, 1992 and February 1, 1993, the
30 contribution required for such credit shall be an amount
31 equal to (1) the contribution rate in effect for participants
32 at the date of membership in this System multiplied by the
33 salary then in effect for members of the General Assembly for
34 each year of service for which credit is being granted, plus
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1 (2) interest thereon at 6% per annum compounded annually,
2 from the date of membership to the date of payment by the
3 member, less (3) any amount transferred to this System on
4 behalf of the member on account of such service credit.
5 The application of the changes to this Section made by
6 this amendatory Act of 1997 is not limited to persons who are
7 in service on or after the effective date of this amendatory
8 Act of 1997.
9 (Source: P.A. 86-27; 86-1028; 87-794; 87-1265.)
10 (40 ILCS 5/2-117.4 new)
11 Sec. 2-117.4. Retransfer of creditable service to
12 Article 14 system. If a person transferred creditable
13 service to this System under Section 14-105.1 between January
14 1, 1990 and February 1, 1991, and that transfer resulted in
15 the person having excess service not established in this
16 System, the person may elect to transfer that excess service
17 back into the Article 14 retirement system. Application to
18 transfer excess service under this Section must be made to
19 the Board in writing within 6 months after the effective date
20 of this Section. The amount of excess service to be
21 retransferred shall be calculated by multiplying the number
22 of years of service transferred from the Article 14 system
23 under Section 14-105.1 by a fraction, the denominator of
24 which is the total employee contribution (including interest)
25 transferred to this system under Section 14-105.1 and the
26 numerator of which is the amount of that transferred employee
27 contribution not used to establish service in this System.
28 At the time of the retransfer, the System shall also
29 transfer to the State Employees' Retirement System an amount,
30 calculated by the Board, equal to (i) the employee
31 contributions (including interest), if any, that were
32 transferred to this System by the applicant under Section
33 14-105.1 and not used to establish service under this
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1 Article, plus (ii) regular interest on those unused employee
2 contributions from the date of the transfer under Section
3 14-105.1 to the date of the retransfer under this Section.
4 (40 ILCS 5/3-110.2) (from Ch. 108 1/2, par. 3-110.2)
5 Sec. 3-110.2. Transfer of creditable service to General
6 Assembly Retirement System.
7 (a) An active member of the General Assembly Retirement
8 System (and until June 1, 1998, a former member of that
9 System who has not yet retired) may apply to transfer his or
10 her credits and creditable service accumulated in any police
11 pension fund under this Article to the General Assembly
12 Retirement System. Such transfer shall be made forthwith.
13 Payment by the police pension fund to the General Assembly
14 Retirement System shall be made at the same time and shall
15 consist of:
16 (1) the amounts credited to the applicant, through
17 employee contributions on the date of transfer; and
18 (2) municipality contributions equal to the
19 accumulated employee contributions as determined under
20 subparagraph (1) above.
21 Participation in the police pension fund shall terminate on
22 the date of transfer.
23 (b) An active member of the General Assembly Retirement
24 System (and until June 1, 1998, a former member of that
25 System who has not yet retired) may reinstate service and
26 creditable service terminated upon receipt of a refund, by
27 payment to the fund of the amount of the refund together with
28 interest thereon at the rate of 6% per year to the date of
29 payment.
30 (c) The application of this Section is not limited to
31 persons who are in service on or after the effective date of
32 this amendatory Act of 1997.
33 (Source: P.A. 83-1440.)
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1 (40 ILCS 5/4-108.1) (from Ch. 108 1/2, par. 4-108.1)
2 Sec. 4-108.1. Transfer of creditable service to General
3 Assembly Retirement System.
4 (a) Any active member of the General Assembly Retirement
5 System (and until June 1, 1998, a former member of that
6 System who has not yet retired) may apply for transfer of
7 credits and creditable service accumulated in any
8 firefighter's pension fund under this Article to the General
9 Assembly Retirement System. Such transfer shall be made
10 forthwith. Payment by the firefighters' pension fund to the
11 General Assembly Retirement System shall be made at the same
12 time and shall consist of:
13 (1) the amounts credited to the applicant through
14 employee contributions; and
15 (2) municipality contributions equal to the
16 accumulated employee contributions as determined under
17 (1) above.
18 Participation in the firefighters' pension fund shall
19 terminate on the date of transfer.
20 (b) An active member of the General Assembly Retirement
21 System (and until June 1, 1998, a former member of that
22 System who has not yet retired) may reinstate service and
23 creditable service terminated upon receipt of a refund, by
24 payment to the firefighters' pension fund of the amount of
25 the refund with interest thereon at the rate of 6% per year
26 to the date of payment.
27 (c) The application of this Section is not limited to
28 persons who are in service on or after the effective date of
29 this amendatory Act of 1997.
30 (Source: P.A. 83-1440.)
31 (40 ILCS 5/5-230) (from Ch. 108 1/2, par. 5-230)
32 Sec. 5-230. General Assembly.
33 (a) Any active (and until February 1, 1993, any former)
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1 member of the General Assembly Retirement System (and until
2 June 1, 1998, a former member of that System who has not yet
3 retired) may apply for transfer of his or her credits and
4 creditable service accumulated under this Fund to the General
5 Assembly System. Such credits and creditable service shall
6 be transferred forthwith. Payment by this Fund to the
7 General Assembly Retirement System shall be made at the same
8 time and shall consist of:
9 (1) the amounts accumulated to the credit of the
10 applicant, including interest, on the books of the Fund
11 on the date of transfer, but excluding any additional or
12 optional credits, which credits shall be refunded to the
13 applicant; and
14 (2) municipality credits computed and credited
15 under this Article including interest, on the books of
16 the Fund on the date the member terminated service under
17 the Fund.
18 Participation in this Fund as to any credits transferred
19 under this Section shall terminate on the date of transfer.
20 (b) An active (and until February 1, 1993, a former)
21 member of the General Assembly Retirement System (and until
22 June 1, 1998, a former member of that System who has not yet
23 retired) may reinstate service and service credits terminated
24 upon receipt of a refund or separation benefit, by payment to
25 the Fund of the amount of the separation benefit plus
26 interest thereon from the date of the refund to the date of
27 payment.
28 (c) The application of this Section is not limited to
29 persons who are in service on or after the effective date of
30 this amendatory Act of 1997.
31 (Source: P.A. 87-1265.)
32 (40 ILCS 5/6-224) (from Ch. 108 1/2, par. 6-224)
33 Sec. 6-224. Transfer to General Assembly Retirement
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1 System.
2 (a) Any active member of the General Assembly Retirement
3 System (and until June 1, 1998, a former member of that
4 System who has not yet retired) may apply for transfer of his
5 or her credits and creditable service accumulated under this
6 Fund to the General Assembly System. Such credits and
7 creditable service shall be transferred forthwith. Payment
8 by this Fund to the General Assembly Retirement System shall
9 be made at the same time and shall consist of:
10 (1) the amounts accumulated to the credit of the
11 applicant, including interest, on the books of the Fund
12 on the date of transfer, but excluding any additional or
13 optional credits, which credits shall be refunded to the
14 applicant; and
15 (2) municipality credits computed and credited
16 under this Article including interest, on the books of
17 the Fund on the date the member terminated service under
18 the Fund.
19 Participation in this Fund as to any credits transferred
20 under this Section shall terminate on the date of transfer.
21 (b) An active member of the General Assembly Retirement
22 System (and until June 1, 1998, a former member of that
23 System who has not yet retired) may reinstate service and
24 service credits terminated upon receipt of a separation
25 benefit, by payment to the Fund of the amount of the
26 separation benefit plus interest thereon to the date of
27 payment.
28 (c) The application of this Section is not limited to
29 persons who are in service on or after the effective date of
30 this amendatory Act of 1997.
31 (Source: P.A. 81-1128.)
32 (40 ILCS 5/7-132) (from Ch. 108 1/2, par. 7-132)
33 Sec. 7-132. Municipalities, instrumentalities and
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1 participating instrumentalities included and effective dates.
2 (A) Municipalities and their instrumentalities.
3 (a) The following described municipalities, but not
4 including any with more than 1,000,000 inhabitants, and the
5 instrumentalities thereof, shall be included within and be
6 subject to this Article beginning upon the effective dates
7 specified by the Board:
8 (1) Except as to the municipalities and
9 instrumentalities thereof specifically excluded under
10 this Article, every county shall be subject to this
11 Article, and all cities, villages and incorporated towns
12 having a population in excess of 5,000 inhabitants as
13 determined by the last preceding decennial or subsequent
14 federal census, shall be subject to this Article
15 following publication of the census by the Bureau of the
16 Census. Within 90 days after publication of the census,
17 the Board shall notify any municipality that has become
18 subject to this Article as a result of that census, and
19 shall provide information to the corporate authorities of
20 the municipality explaining the duties and consequences
21 of participation. The notification shall also include a
22 proposed date upon which participation by the
23 municipality will commence.
24 However, for any city, village or incorporated town
25 that attains a population over 5,000 inhabitants after
26 having provided social security coverage for its
27 employees under the Social Security Enabling Act,
28 participation under this Article shall not be mandatory
29 but may be elected in accordance with subparagraph (3) or
30 (4) of this paragraph (a), whichever is applicable.
31 (2) School districts, other than those specifically
32 excluded under this Article, shall be subject to this
33 Article, without election, with respect to all employees
34 thereof.
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1 (3) Towns and all other bodies politic and
2 corporate which are formed by vote of, or are subject to
3 control by, the electors in towns and are located in
4 towns which are not participating municipalities on the
5 effective date of this Act, may become subject to this
6 Article by election pursuant to Section 7-132.1.
7 (4) Any other municipality (together with its
8 instrumentalities), other than those specifically
9 excluded from participation and those described in
10 paragraph (3) above, may elect to be included either by
11 referendum under Section 7-134 or by the adoption of a
12 resolution or ordinance by its governing body. A copy of
13 such resolution or ordinance duly authenticated and
14 certified by the clerk of the municipality or other
15 appropriate official of its governing body shall
16 constitute the required notice to the board of such
17 action.
18 (b) A municipality that is about to begin participation
19 shall submit to the Board an application to participate, in a
20 form acceptable to the Board, not later than 90 days prior to
21 the proposed effective date of participation. The Board
22 shall act upon the application within 90 days, and if it
23 finds that the application is in conformity with its
24 requirements and the requirements of this Article,
25 participation by the applicant shall commence on a date
26 acceptable to the municipality and specified by the Board,
27 but in no event more than one year from the date of
28 application.
29 (c) A participating municipality which succeeds to the
30 functions of a participating municipality which is dissolved
31 or terminates its existence shall assume and be transferred
32 the net accumulation balance in the municipality reserve and
33 the municipality account receivable balance of the terminated
34 municipality.
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1 (d) In the case of a Veterans Assistance Commission
2 whose employees were being treated by the Fund on January 1,
3 1990 as employees of the county served by the Commission, the
4 Fund may continue to treat the employees of the Veterans
5 Assistance Commission as county employees for the purposes of
6 this Article, unless the Commission becomes a participating
7 instrumentality in accordance with subsection (B) of this
8 Section.
9 (B) Participating instrumentalities.
10 (a) The participating instrumentalities designated in
11 paragraph (b) of this subsection shall be included within and
12 be subject to this Article if:
13 (1) an application to participate, in a form
14 acceptable to the Board and adopted by a two-thirds vote
15 of the governing body, is presented to the Board not
16 later than 90 days prior to the proposed effective date;
17 and
18 (2) the Board finds that the application is in
19 conformity with its requirements, that the applicant has
20 reasonable expectation to continue as a political entity
21 for a period of at least 10 years and has the prospective
22 financial capacity to meet its current and future
23 obligations to the Fund, and that the actuarial soundness
24 of the Fund may be reasonably expected to be unimpaired
25 by approval of participation by the applicant.
26 The Board shall notify the applicant of its findings
27 within 90 days after receiving the application, and if the
28 Board approves the application, participation by the
29 applicant shall commence on the effective date specified by
30 the Board.
31 (b) The following participating instrumentalities, so
32 long as they meet the requirements of Section 7-108 and the
33 area served by them or within their jurisdiction is not
34 located entirely within a municipality having more than one
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1 million inhabitants, may be included hereunder:
2 i. Township School District Trustees.
3 ii. Multiple County and Consolidated Health
4 Departments created under Division 5-25 of the Counties
5 Code or its predecessor law.
6 iii. Public Building Commissions created under the
7 Public Building Commission Act, and located in counties
8 of less than 1,000,000 inhabitants.
9 iv. A multitype, consolidated or cooperative
10 library system created under the Illinois Library System
11 Act. Any library system created under the Illinois
12 Library System Act that has one or more predecessors that
13 participated in the Fund may participate in the Fund upon
14 application. The Board shall establish procedures for
15 implementing the transfer of rights and obligations from
16 the predecessor system to the successor system.
17 v. Regional Planning Commissions created under
18 Division 5-14 of the Counties Code or its predecessor
19 law.
20 vi. Local Public Housing Authorities created under
21 the Housing Authorities Act, located in counties of less
22 than 1,000,000 inhabitants.
23 vii. Illinois Municipal League.
24 viii. Northeastern Illinois Metropolitan Area
25 Planning Commission.
26 ix. Southwestern Illinois Metropolitan Area
27 Planning Commission.
28 x. Illinois Association of Park Districts.
29 xi. Illinois Supervisors, County Commissioners and
30 Superintendents of Highways Association.
31 xii. Tri-City Regional Port District.
32 xiii. An association, or not-for-profit
33 corporation, membership in which is authorized under
34 Section 85-15 of the Township Code.
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1 xiv. Drainage Districts operating under the
2 Illinois Drainage Code.
3 xv. Local mass transit districts created under the
4 Local Mass Transit District Act.
5 xvi. Soil and water conservation districts created
6 under the Soil and Water Conservation Districts Law.
7 xvii. Commissions created to provide water supply
8 or sewer services or both under Division 135 or Division
9 136 of Article 11 of the Illinois Municipal Code.
10 xviii. Public water districts created under the
11 Public Water District Act.
12 xix. Veterans Assistance Commissions established
13 under Section 9 of the Military Veterans Assistance Act
14 that serve counties with a population of less than
15 1,000,000.
16 xx. The governing body of an entity, other than a
17 vocational education cooperative, created under an
18 intergovernmental cooperative agreement established
19 between participating municipalities under the
20 Intergovernmental Cooperation Act, which by the terms of
21 the agreement is the employer of the persons performing
22 services under the agreement under the usual common law
23 rules determining the employer-employee relationship.
24 The governing body of such an intergovernmental
25 cooperative entity established prior to July 1, 1988 may
26 make participation retroactive to the effective date of
27 the agreement and, if so, the effective date of
28 participation shall be the date the required application
29 is filed with the fund. If any such entity is unable to
30 pay the required employer contributions to the fund, then
31 the participating municipalities shall make payment of
32 the required contributions and the payments shall be
33 allocated as provided in the agreement or, if not so
34 provided, equally among them.
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1 xxi. The Illinois Municipal Electric Agency.
2 xxii. The Waukegan Port District.
3 xxiii. The Fox Waterway Agency created under the
4 Fox Waterway Agency Act.
5 (c) The governing boards of special education joint
6 agreements created under Section 10-22.31 of the School Code
7 without designation of an administrative district, shall be
8 included within and be subject to this Article as
9 participating instrumentalities when the joint agreement
10 becomes effective. However, the governing board of any such
11 special education joint agreement in effect before September
12 5, 1975 shall not be subject to this Article unless the joint
13 agreement is modified by the school districts to provide that
14 the governing board is subject to this Article, except as
15 otherwise provided by this Section.
16 The governing board of the Special Education District of
17 Lake County shall become subject to this Article as a
18 participating instrumentality on July 1, 1997.
19 Notwithstanding subdivision (a)1 of Section 7-139, on the
20 effective date of participation, employees of the governing
21 board of the Special Education District of Lake County shall
22 receive creditable service for their prior service with that
23 employer, up to a maximum of 5 years, without any employee
24 contribution. Employees may establish creditable service for
25 the remainder of their prior service with that employer, if
26 any, by applying in writing and paying an employee
27 contribution in an amount determined by the Fund, based on
28 the employee contribution rates in effect at the time of
29 application for the creditable service and the employee's
30 salary rate on the effective date of participation for that
31 employer, plus interest at the effective rate from the date
32 of the prior service to the date of payment. Application for
33 this creditable service must be made before July 1, 1998; the
34 payment may be made at any time while the employee is still
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1 in service. The employer may elect to make the required
2 contribution on behalf of the employee.
3 The governing board of a special education joint
4 agreement created under Section 10-22.31 of the School Code
5 for which an administrative district has been designated, if
6 there are employees of the cooperative educational entity who
7 are not employees of the administrative district, may elect
8 to participate in the Fund and be included within this
9 Article as a participating instrumentality, subject to such
10 application procedures and rules as the Board may prescribe.
11 The Boards of Control of cooperative or joint educational
12 programs or projects created and administered under Section
13 3-15.14 of the School Code, whether or not the Boards act as
14 their own administrative district, shall be included within
15 and be subject to this Article as participating
16 instrumentalities when the agreement establishing the
17 cooperative or joint educational program or project becomes
18 effective.
19 The governing board of a special education joint
20 agreement entered into after June 30, 1984 and prior to
21 September 17, 1985 which provides for representation on the
22 governing board by less than all the participating districts
23 shall be included within and subject to this Article as a
24 participating instrumentality. Such participation shall be
25 effective as of the date the joint agreement becomes
26 effective.
27 The governing boards of educational service centers
28 established under Section 2-3.62 of the School Code shall be
29 included within and subject to this Article as participating
30 instrumentalities. The governing boards of vocational
31 education cooperative agreements created under the
32 Intergovernmental Cooperation Act and approved by the State
33 Board of Education shall be included within and be subject to
34 this Article as participating instrumentalities. If any such
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1 governing boards or boards of control are unable to pay the
2 required employer contributions to the fund, then the school
3 districts served by such boards shall make payment of
4 required contributions as provided in Section 7-172. The
5 payments shall be allocated among the several school
6 districts in proportion to the number of students in average
7 daily attendance for the last full school year for each
8 district in relation to the total number of students in
9 average attendance for such period for all districts served.
10 If such educational service centers, vocational education
11 cooperatives or cooperative or joint educational programs or
12 projects created and administered under Section 3-15.14 of
13 the School Code are dissolved, the assets and obligations
14 shall be distributed among the districts in the same
15 proportions unless otherwise provided.
16 (d) The governing boards of special recreation joint
17 agreements created under Section 8-10b of the Park District
18 Code, operating without designation of an administrative
19 district or an administrative municipality appointed to
20 administer the program operating under the authority of such
21 joint agreement shall be included within and be subject to
22 this Article as participating instrumentalities when the
23 joint agreement becomes effective. However, the governing
24 board of any such special recreation joint agreement in
25 effect before January 1, 1980 shall not be subject to this
26 Article unless the joint agreement is modified, by the
27 districts and municipalities which are parties to the
28 agreement, to provide that the governing board is subject to
29 this Article.
30 If the Board returns any employer and employee
31 contributions to any employer which erroneously submitted
32 such contributions on behalf of a special recreation joint
33 agreement, the Board shall include interest computed from the
34 end of each year to the date of payment, not compounded, at
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1 the rate of 7% per annum.
2 (e) Each multi-township assessment district, the board
3 of trustees of which has adopted this Article by ordinance
4 prior to April 1, 1982, shall be a participating
5 instrumentality included within and subject to this Article
6 effective December 1, 1981. The contributions required under
7 Section 7-172 shall be included in the budget prepared under
8 and allocated in accordance with Section 2-30 of the Property
9 Tax Code.
10 (f) Beginning January 1, 1992, each prospective
11 participating municipality or participating instrumentality
12 shall pay to the Fund the cost, as determined by the Board,
13 of a study prepared by the Fund or its actuary, detailing the
14 prospective costs of participation in the Fund to be expected
15 by the municipality or instrumentality.
16 (Source: P.A. 88-670, eff. 12-2-94, 89-162, eff. 7-19-95.)
17 (40 ILCS 5/7-139.1) (from Ch. 108 1/2, par. 7-139.1)
18 Sec. 7-139.1. General Assembly transfers and credits.
19 (a) Any active member of the General Assembly Retirement
20 System (and until June 1, 1998 February 1, 1993, any former
21 member of that System who has not yet retired) may apply for
22 transfer of his or her credits and creditable service
23 accumulated under this Fund to the General Assembly System.
24 Also, any active member of the State Employees' Retirement
25 System of Illinois who is an officer of the General Assembly
26 may apply for a similar transfer from this Fund, provided
27 that such member received credit under this Fund as an
28 elected county officer. Such credits and creditable service
29 shall be transferred forthwith. Payment by this Fund to the
30 General Assembly System or the State Employees' Retirement
31 System shall be made at the same time and shall consist of:
32 (1) the amounts accumulated to the credit of the
33 applicant, including interest, on the books of the Fund
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1 on the date of transfer, but excluding any additional or
2 optional credits, which credits shall be refunded to the
3 applicant; and
4 (2) municipality credits computed and credited
5 under Section 7-139, including interest, on the books of
6 the Fund on the date the member terminated service under
7 the Fund.
8 Participation in this Fund as to any credits transferred
9 under this Section shall terminate on the date of transfer.
10 (b) An active member of the General Assembly Retirement
11 System (and until June 1, 1998 February 1, 1993, any former
12 member of that System who has not yet retired) who has
13 service credits and creditable service under the Fund may
14 establish additional service credits and creditable service
15 for periods during which he or she was an elected official
16 and could have elected to participate but did not so elect.
17 Service credits and creditable service may be established by
18 payment to the fund of an amount equal to the contributions
19 that the applicant he would have made if he or she had
20 elected to participate, plus interest to the date of payment.
21 The limitations in subparagraph (c) of Section 7-139 of this
22 Article shall not apply to payments made under this Section.
23 (c) An active member of the General Assembly Retirement
24 System (and until June 1, 1998 February 1, 1993, any former
25 member of that System who has not yet retired) may reinstate
26 service and service credits terminated upon receipt of a
27 separation benefit, by payment to the Fund of the amount of
28 the separation benefit plus interest thereon to the date of
29 payment.
30 (d) The application of this Section is not limited to
31 persons who are in service on or after the effective date of
32 this amendatory Act of 1997.
33 (Source: P.A. 87-794.)
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1 (40 ILCS 5/7-141.1)
2 Sec. 7-141.1. Early retirement incentive.
3 (a) The General Assembly finds and declares that:
4 (1) Units of local government across the State have
5 been functioning under a financial crisis.
6 (2) This financial crisis is expected to continue.
7 (3) Units of local government must depend on
8 additional sources of revenue and, when those sources are
9 not forthcoming, must establish cost-saving programs.
10 (4) An early retirement incentive designed
11 specifically to target highly-paid senior employees could
12 result in significant annual cost savings.
13 (5) The early retirement incentive should be made
14 available only to those units of local government that
15 determine that an early retirement incentive is in their
16 best interest.
17 (6) A unit of local government adopting a program
18 of early retirement incentives under this Section is
19 encouraged to implement personnel procedures to prohibit,
20 for at least 5 years, the rehiring (whether on payroll or
21 by independent contract) of employees who receive early
22 retirement incentives.
23 (7) A unit of local government adopting a program
24 of early retirement incentives under this Section is also
25 encouraged to replace as few of the participating
26 employees as possible and to hire replacement employees
27 for salaries totaling no more than 80% of the total
28 salaries formerly paid to the employees who participate
29 in the early retirement program.
30 It is the primary purpose of this Section to encourage
31 units of local government that can realize true cost savings,
32 or have determined that an early retirement program is in
33 their best interest, to implement an early retirement
34 program.
-38- LRB9000609EGfgam30
1 (b) This Section does not apply to any employer that is
2 a city, village, or incorporated town, nor to the employees
3 of any such employer. All references in this Section to an
4 "employer" or "unit of local government" are specifically
5 intended to exclude every employer that is a city, village,
6 or incorporated town.
7 The benefits provided in this Section are available only
8 to members employed by a participating employer that has
9 filed with the Board of the Fund a resolution or ordinance
10 expressly providing for the creation of an early retirement
11 incentive program under this Section for its employees and
12 specifying the effective date of the early retirement
13 incentive program. Subject to the limitation in subsection
14 (h), an employer may adopt a resolution or ordinance
15 providing a program of early retirement incentives under this
16 Section at any time, but no more often than once in 5 years.
17 The resolution or ordinance shall be in substantially the
18 following form:
19 RESOLUTION (ORDINANCE) NO. ....
20 A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
21 RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
22 IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
23 WHEREAS, Section 7-141.1 of the Illinois Pension Code
24 provides that a participating employer may elect to adopt an
25 early retirement incentive program offered by the Illinois
26 Municipal Retirement Fund by adopting a resolution or
27 ordinance; and
28 WHEREAS, The goal of adopting an early retirement program
29 is to realize a substantial savings in personnel costs by
30 offering early retirement incentives to employees who have
31 accumulated many years of service credit; and
32 WHEREAS, Implementation of the early retirement program
33 will provide a budgeting tool to aid in controlling payroll
34 costs; and
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1 WHEREAS, The (name of governing body) has determined that
2 the adoption of an early retirement incentive program is in
3 the best interests of the (name of participating employer);
4 therefore be it
5 RESOLVED (ORDAINED) by the (name of governing body) of
6 (name of participating employer) that:
7 (1) The (name of participating employer) does hereby
8 adopt the Illinois Municipal Retirement Fund early retirement
9 incentive program as provided in Section 7-141.1 of the
10 Illinois Pension Code. The early retirement incentive
11 program shall take effect on (date).
12 (2) In order to help achieve a true cost savings, a
13 person who retires under the early retirement incentive
14 program shall lose those incentives if he or she later
15 accepts employment with any IMRF employer in a position for
16 which participation in IMRF is required or is elected by the
17 employee.
18 (3) In order to utilize an early retirement incentive as
19 a budgeting tool, the (name of participating employer) will
20 use its best efforts either to limit the number of employees
21 who replace the employees who retire under the early
22 retirement program or to limit the salaries paid to the
23 employees who replace the employees who retire under the
24 early retirement program.
25 (4) The effective date of each employee's retirement
26 under this early retirement program shall be set by (name of
27 employer) and shall be no earlier than the effective date of
28 the program and no later than one year after that effective
29 date; except that the employee may require that the
30 retirement date set by the employer be no later than the June
31 30 next occurring after the effective date of the program and
32 no earlier than the date upon which the employee qualifies
33 for retirement.
34 (5) To be eligible for the early retirement incentive
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1 under this Section, the employee must have attained age 50
2 and have at least 20 years of creditable service by his or
3 her retirement date.
4 (6) The (clerk or secretary) shall promptly file a
5 certified copy of this resolution (ordinance) with the Board
6 of Trustees of the Illinois Municipal Retirement Fund.
7 CERTIFICATION
8 I, (name), the (clerk or secretary) of the (name of
9 participating employer) of the County of (name), State of
10 Illinois, do hereby certify that I am the keeper of the books
11 and records of the (name of employer) and that the foregoing
12 is a true and correct copy of a resolution (ordinance) duly
13 adopted by the (governing body) at a meeting duly convened
14 and held on (date).
15 SEAL
16 (Signature of clerk or secretary)
17 (c) To be eligible for the benefits provided under an
18 early retirement incentive program adopted under this
19 Section, a member must:
20 (1) be a participating employee of this Fund who,
21 on the effective date of the program, (i) is in active
22 payroll status as an employee of a participating employer
23 that has filed the required ordinance or resolution with
24 the Board, (ii) is on layoff status from such a position
25 with a right of re-employment or recall to service, (iii)
26 is on a leave of absence from such a position, or (iv) is
27 on disability but has not been receiving benefits under
28 Section 7-146 or 7-150 for a period of more than 2 years
29 from the date of application;
30 (2) have never previously received a retirement
31 annuity under this Article or under the Retirement
32 Systems Reciprocal Act using service credit established
33 under this Article;
34 (3) file with the Board within 60 days of the
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1 effective date of the program an application requesting
2 the benefits provided in this Section;
3 (4) have at least 20 years of creditable service in
4 the Fund by the date of retirement, without the use of
5 any creditable service established under this Section;
6 (5) have attained age 50 by the date of retirement,
7 without the use of any age enhancement received under
8 this Section; and
9 (6) be eligible to receive a retirement annuity
10 under this Article by the date of retirement, for which
11 purpose the age enhancement and creditable service
12 established under this Section may be considered.
13 (d) The employer shall determine the retirement date for
14 each employee participating in the early retirement program
15 adopted under this Section. The retirement date shall be no
16 earlier than the effective date of the program and no later
17 than one year after that effective date, except that the
18 employee may require that the retirement date set by the
19 employer be no later than the June 30 next occurring after
20 the effective date of the program and no earlier than the
21 date upon which the employee qualifies for retirement. The
22 employer shall give each employee participating in the early
23 retirement program at least 30 days written notice of the
24 employee's designated retirement date, unless the employee
25 waives this notice requirement.
26 (e) An eligible person may establish up to 5 years of
27 creditable service under this Section. In addition, for each
28 period of creditable service established under this Section,
29 a person shall have his or her age at retirement deemed
30 enhanced by an equivalent period.
31 The creditable service established under this Section may
32 be used for all purposes under this Article and the
33 Retirement Systems Reciprocal Act, except for the computation
34 of final rate of earnings and the determination of earnings,
-42- LRB9000609EGfgam30
1 salary, or compensation under this or any other Article of
2 the Code.
3 The age enhancement established under this Section may be
4 used for all purposes under this Article (including
5 calculation of the reduction imposed under subdivision
6 (a)1b(iv) of Section 7-142), except for purposes of a
7 reversionary annuity under Section 7-145 and any
8 distributions required because of age. The age enhancement
9 established under this Section may be used in calculating a
10 proportionate annuity payable by this Fund under the
11 Retirement Systems Reciprocal Act, but shall not be used in
12 determining benefits payable under other Articles of this
13 Code under the Retirement Systems Reciprocal Act.
14 (f) For all creditable service established under this
15 Section, the member must pay to the Fund an employee
16 contribution consisting of 4.5% of the member's highest
17 annual salary rate used in the determination of the final
18 rate of earnings for retirement annuity purposes for each
19 year of creditable service granted under this Section. For
20 creditable service established under this Section by a person
21 who is a sheriff's law enforcement employee to be deemed
22 service as a sheriff's law enforcement employee, the employee
23 contribution shall be at the rate of 6.5% of highest annual
24 salary per year of creditable service granted. Contributions
25 for fractions of a year of service shall be prorated. Any
26 amounts that are disregarded in determining the final rate of
27 earnings under subdivision (d)(5) of Section 7-116 (the 125%
28 rule) shall also be disregarded in determining the required
29 contribution under this subsection (f).
30 The employee contribution shall be paid to the Fund as
31 follows: If the member is entitled to a lump sum payment for
32 accumulated vacation, sick leave, or personal leave upon
33 withdrawal from service, the employer shall deduct the
34 employee contribution from that lump sum and pay the deducted
-43- LRB9000609EGfgam30
1 amount directly to the Fund. If there is no such lump sum
2 payment or the required employee contribution exceeds the net
3 amount of the lump sum payment, then the remaining amount
4 due, at the option of the employee, may either be paid to the
5 Fund before the annuity commences or deducted from the
6 retirement annuity in 24 equal monthly installments.
7 (g) An annuitant who has received any age enhancement or
8 creditable service under this Section and thereafter accepts
9 employment with or enters into a personal services contract
10 with an employer under this Article thereby forfeits that age
11 enhancement and creditable service. A person forfeiting
12 early retirement incentives under this subsection (i) must
13 repay to the Fund that portion of the retirement annuity
14 already received which is attributable to the early
15 retirement incentives that are being forfeited, (ii) shall
16 not be eligible to participate in any future early retirement
17 program adopted under this Section, and (iii) is entitled to
18 a refund of the employee contribution paid under subsection
19 (f). The Board shall deduct the required repayment from the
20 refund and may impose a reasonable payment schedule for
21 repaying the amount, if any, by which the required repayment
22 exceeds the refund amount.
23 (h) The additional unfunded liability accruing as a
24 result of the adoption of a program of early retirement
25 incentives under this Section by an employer shall be
26 amortized over a period of 10 years beginning on January 1 of
27 the second calendar year following the calendar year in which
28 the latest date for beginning to receive a retirement annuity
29 under the program (as determined by the employer under
30 subsection (d) of this Section) occurs; except that the
31 employer may provide for a shorter amortization period (of no
32 less than 5 years) by adopting an ordinance or resolution
33 specifying the length of the amortization period and
34 submitting a certified copy of the ordinance or resolution to
-44- LRB9000609EGfgam30
1 the Fund no later than 6 months after the effective date of
2 the program. An employer, at its discretion, may accelerate
3 payments to the Fund.
4 An employer may provide more than one early retirement
5 incentive program for its employees under this Section.
6 However, an employer that has provided an early retirement
7 incentive program for its employees under this Section may
8 not provide another early retirement incentive program under
9 this Section until (1) the liability arising from the earlier
10 program has been fully paid to the Fund and (2) at least 6
11 years have elapsed from the effective date of the previous
12 program.
13 (Source: P.A. 89-329, eff. 8-17-95.)
14 (40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
15 Sec. 7-171. Finance; taxes.
16 (a) Each municipality other than a school district shall
17 appropriate an amount sufficient to provide for the current
18 municipality contributions required by Section 7-172 of this
19 Article, for the fiscal year for which the appropriation is
20 made and all amounts due for municipal contributions for
21 previous years. Those municipalities which have been assessed
22 an annual amount to amortize its unfunded obligation, as
23 provided in subparagraph 5 of paragraph (a) of Section 7-172
24 of this Article, shall include in the appropriation an amount
25 sufficient to pay the amount assessed. The appropriation
26 shall be based upon an estimate of assets available for
27 municipality contributions and liabilities therefor for the
28 fiscal year for which appropriations are to be made,
29 including funds available from levies for this purpose in
30 prior years.
31 (b) For the purpose of providing monies for municipality
32 contributions, beginning for the year in which a municipality
33 is included in this fund:
-45- LRB9000609EGfgam30
1 (1) A municipality other than a school district may
2 levy a tax which shall not exceed the amount appropriated
3 for municipality contributions.
4 (2) A school district may levy a tax in an amount
5 reasonably calculated at the time of the levy to provide
6 for the municipality contributions required under Section
7 7-172 of this Article for the fiscal years for which
8 revenues from the levy will be received and all amounts
9 due for municipal contributions for previous years. Any
10 levy adopted before the effective date of this amendatory
11 Act of 1995 by a school district shall be considered
12 valid and authorized to the extent that the amount was
13 reasonably calculated at the time of the levy to provide
14 for the municipality contributions required under Section
15 7-172 for the fiscal years for which revenues from the
16 levy will be received and all amounts due for municipal
17 contributions for previous years. In no event shall a
18 budget adopted by a school district limit a levy of that
19 school district adopted under this Section.
20 (c) Any county which is a part of an educational service
21 region comprised of two or more counties formed under Section
22 3A of The School Code may include in its appropriation an
23 amount sufficient to provide its proportionate share of the
24 municipality contributions of the region. The tax levy
25 authorized by this Section may include an amount necessary to
26 provide monies for this contribution.
27 (d) Any county that is a part of a multiple-county
28 health department or consolidated health department which is
29 formed under "An Act in relation to the establishment and
30 maintenance of county and multiple-county public health
31 departments", approved July 9, 1943, as amended, and which is
32 a participating instrumentality may include in the county's
33 appropriation an amount sufficient to provide its
34 proportionate share of municipality contributions of the
-46- LRB9000609EGfgam30
1 department. The tax levy authorized by this Section may
2 include the amount necessary to provide monies for this
3 contribution.
4 (d-5) A school district participating in a special
5 education joint agreement created under Section 10-22.31 of
6 the School Code that is a participating instrumentality may
7 include in the school district's tax levy under this Section
8 an amount sufficient to provide its proportionate share of
9 the municipality contributions for current and prior service
10 by employees of the participating instrumentality created
11 under the joint agreement.
12 (e) Such tax shall be levied and collected in like
13 manner, with the general taxes of the municipality and shall
14 be in addition to all other taxes which the municipality is
15 now or may hereafter be authorized to levy upon all taxable
16 property therein, and shall be exclusive of and in addition
17 to the amount of tax levied for general purposes under
18 Section 8-3-1 of the "Illinois Municipal Code", approved May
19 29, 1961, as amended, or under any other law or laws which
20 may limit the amount of tax which the municipality may levy
21 for general purposes. The tax may be levied by the governing
22 body of the municipality without being authorized as being
23 additional to all other taxes by a vote of the people of the
24 municipality.
25 (f) The county clerk of the county in which any such
26 municipality is located, in reducing tax levies shall not
27 consider any such tax as a part of the general tax levy for
28 municipality purposes, and shall not include the same in the
29 limitation of any other tax rate which may be extended.
30 (g) The amount of the tax to be levied in any year
31 shall, within the limits herein prescribed, be determined by
32 the governing body of the respective municipality.
33 (h) The revenue derived from any such tax levy shall be
34 used only for the purposes specified in this Article, and, as
-47- LRB9000609EGfgam30
1 collected, shall be paid to the treasurer of the municipality
2 levying the tax. Monies received by a county treasurer for
3 use in making contributions to a consolidated educational
4 service region for its municipality contributions shall be
5 held by him for that purpose and paid to the region in the
6 same manner as other monies appropriated for the expense of
7 the region.
8 (Source: P.A. 89-329, eff. 8-17-95.)
9 (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
10 Sec. 8-138. Minimum annuities - Additional provisions.
11 (a) An employee who withdraws after age 65 or more with
12 at least 20 years of service, for whom the amount of age and
13 service and prior service annuity combined is less than the
14 amount stated in this Section, shall from the date of
15 withdrawal, instead of all annuities otherwise provided, be
16 entitled to receive an annuity for life of $150 a year, plus
17 1 1/2% for each year of service, to and including 20 years,
18 and 1 2/3% for each year of service over 20 years, of his
19 highest average annual salary for any 4 consecutive years
20 within the last 10 years of service immediately preceding the
21 date of withdrawal.
22 An employee who withdraws after 20 or more years of
23 service, before age 65, shall be entitled to such annuity, to
24 begin not earlier than upon attained age of 55 years if under
25 such age at withdrawal, reduced by 2% for each full year or
26 fractional part thereof that his attained age is less than
27 65, plus an additional 2% reduction for each full year or
28 fractional part thereof that his attained age when annuity is
29 to begin is less than 60 so that the total reduction at age
30 55 shall be 30%.
31 (b) An employee who withdraws after July 1, 1957, at age
32 60 or over, with 20 or more years of service, for whom the
33 age and service and prior service annuity combined, is less
-48- LRB9000609EGfgam30
1 than the amount stated in this paragraph, shall, from the
2 date of withdrawal, instead of such annuities, be entitled to
3 receive an annuity for life equal to 1 2/3% for each year of
4 service, of the highest average annual salary for any 5
5 consecutive years within the last 10 years of service
6 immediately preceding the date of withdrawal; provided, that
7 in the case of any employee who withdraws on or after July 1,
8 1971, such employee age 60 or over with 20 or more years of
9 service, shall receive an annuity for life equal to 1.67% for
10 each of the first 10 years of service; 1.90% for each of the
11 next 10 years of service; 2.10% for each year of service in
12 excess of 20 but not exceeding 30; and 2.30% for each year of
13 service in excess of 30, based on the highest average annual
14 salary for any 4 consecutive years within the last 10 years
15 of service immediately preceding the date of withdrawal.
16 An employee who withdraws after July 1, 1957 and before
17 January 1, 1988, with 20 or more years of service, before age
18 60 years is entitled to annuity, to begin not earlier than
19 upon attained age of 55 years, if under such age at
20 withdrawal, as computed in the last preceding paragraph,
21 reduced 0.25% for each full month or fractional part thereof
22 that his attained age when annuity is to begin is less than
23 60 if the employee was born before January 1, 1936, or 0.5%
24 for each such month if the employee was born on or after
25 January 1, 1936.
26 Any employee born before January 1, 1936, who withdraws
27 with 20 or more years of service, and any employee with 20 or
28 more years of service who withdraws on or after January 1,
29 1988, may elect to receive, in lieu of any other employee
30 annuity provided in this Section, an annuity for life equal
31 to 1.80% for each of the first 10 years of service, 2.00% for
32 each of the next 10 years of service, 2.20% for each year of
33 service in excess of 20 but not exceeding 30, and 2.40% for
34 each year of service in excess of 30, of the highest average
-49- LRB9000609EGfgam30
1 annual salary for any 4 consecutive years within the last 10
2 years of service immediately preceding the date of
3 withdrawal, to begin not earlier than upon attained age of 55
4 years, if under such age at withdrawal, reduced 0.25% for
5 each full month or fractional part thereof that his attained
6 age when annuity is to begin is less than 60; except that an
7 employee retiring on or after January 1, 1988, at age 55 or
8 over but less than age 60, having at least 35 years of
9 service, or an employee retiring on or after July 1, 1990, at
10 age 55 or over but less than age 60, having at least 30 years
11 of service, or an employee retiring on or after the effective
12 date of this amendatory Act of 1997, at age 55 or over but
13 less than age 60, having at least 25 years of service, shall
14 not be subject to the reduction in retirement annuity because
15 of retirement below age 60.
16 However, in the case of an employee who retired on or
17 after January 1, 1985 but before January 1, 1988, at age 55
18 or older and with at least 35 years of service, and who was
19 subject under this subsection (b) to the reduction in
20 retirement annuity because of retirement below age 60, that
21 reduction shall cease to be effective January 1, 1991, and
22 the retirement annuity shall be recalculated accordingly.
23 Any employee who withdraws on or after July 1, 1990, with
24 20 or more years of service, may elect to receive, in lieu of
25 any other employee annuity provided in this Section, an
26 annuity for life equal to 2.20% for each year of service of
27 the highest average annual salary for any 4 consecutive years
28 within the last 10 years of service immediately preceding the
29 date of withdrawal, to begin not earlier than upon attained
30 age of 55 years, if under such age at withdrawal, reduced
31 0.25% for each full month or fractional part thereof that his
32 attained age when annuity is to begin is less than 60; except
33 that an employee retiring at age 55 or over but less than age
34 60, having at least 30 years of service, shall not be subject
-50- LRB9000609EGfgam30
1 to the reduction in retirement annuity because of retirement
2 below age 60.
3 Any employee who withdraws on or after the effective date
4 of this amendatory Act of 1997 with 20 or more years of
5 service may elect to receive, in lieu of any other employee
6 annuity provided in this Section, an annuity for life equal
7 to 2.20%, for each year of service, of the highest average
8 annual salary for any 4 consecutive years within the last 10
9 years of service immediately preceding the date of
10 withdrawal, to begin not earlier than upon attainment of age
11 55 (age 50 if the employee has at least 30 years of service),
12 reduced 0.25% for each full month or remaining fractional
13 part thereof that the employee's attained age when annuity is
14 to begin is less than 60; except that an employee retiring at
15 age 50 or over with at least 30 years of service or at age 55
16 or over with at least 25 years of service shall not be
17 subject to the reduction in retirement annuity because of
18 retirement below age 60.
19 The maximum annuity payable under part (a) and (b) of
20 this Section shall not exceed 70% of highest average annual
21 salary in the case of an employee who withdraws prior to July
22 1, 1971, and 75% if withdrawal takes place on or after July
23 1, 1971. For the purpose of the minimum annuity provided in
24 this Section $1,500 is considered the minimum annual salary
25 for any year; and the maximum annual salary for the
26 computation of such annuity is $4,800 for any year before
27 1953, $6000 for the years 1953 to 1956, inclusive, and the
28 actual annual salary, as salary is defined in this Article,
29 for any year thereafter.
30 To preserve rights existing on December 31, 1959, for
31 participants and contributors on that date to the fund
32 created by the Court and Law Department Employees' Annuity
33 Act, who became participants in the fund provided for on
34 January 1, 1960, the maximum annual salary to be considered
-51- LRB9000609EGfgam30
1 for such persons for the years 1955 and 1956 is $7,500.
2 (c) For an employee receiving disability benefit, his
3 salary for annuity purposes under paragraphs (a) and (b) of
4 this Section, for all periods of disability benefit
5 subsequent to the year 1956, is the amount on which his
6 disability benefit was based.
7 (d) An employee with 20 or more years of service, whose
8 entire disability benefit credit period expires before
9 attainment of age 55 while still disabled for service, is
10 entitled upon withdrawal to the larger of (1) the minimum
11 annuity provided above, assuming he is then age 55, and
12 reducing such annuity to its actuarial equivalent as of his
13 attained age on such date or (2) the annuity provided from
14 his age and service and prior service annuity credits.
15 (e) The minimum annuity provisions do not apply to any
16 former municipal employee receiving an annuity from the fund
17 who re-enters service as a municipal employee, unless he
18 renders at least 3 years of additional service after the date
19 of re-entry.
20 (f) An employee in service on July 1, 1947, or who
21 became a contributor after July 1, 1947 and before attainment
22 of age 70, who withdraws after age 65, with less than 20
23 years of service for whom the annuity has been fixed under
24 this Article shall, instead of the annuity so fixed, receive
25 an annuity as follows:
26 Such amount as he could have received had the accumulated
27 amounts for annuity been improved with interest at the
28 effective rate to the date of his withdrawal, or to
29 attainment of age 70, whichever is earlier, and had the city
30 contributed to such earlier date for age and service annuity
31 the amount that it would have contributed had he been under
32 age 65, after the date his annuity was fixed in accordance
33 with this Article, and assuming his annuity were computed
34 from such accumulations as of his age on such earlier date.
-52- LRB9000609EGfgam30
1 The annuity so computed shall not exceed the annuity which
2 would be payable under the other provisions of this Section
3 if the employee was credited with 20 years of service and
4 would qualify for annuity thereunder.
5 (g) Instead of the annuity provided in this Article, an
6 employee having attained age 65 with at least 15 years of
7 service who withdraws from service on or after July 1, 1971
8 and whose annuity computed under other provisions of this
9 Article is less than the amount provided under this
10 paragraph, is entitled to a minimum annuity for life equal to
11 1% of the highest average annual salary, as salary is defined
12 and limited in this Section for any 4 consecutive years
13 within the last 10 years of service for each year of service,
14 plus the sum of $25 for each year of service. The annuity
15 shall not exceed 60% of such highest average annual salary.
16 (h) The minimum annuities provided under this Section
17 shall be paid in equal monthly installments.
18 (i) The amendatory provisions of part (b) and (g) of
19 this Section shall be effective July 1, 1971 and apply in the
20 case of every qualifying employee withdrawing on or after
21 July 1, 1971.
22 (j) The amendatory provisions of this amendatory Act of
23 1985 (P.A. 84-23) relating to the discount of annuity because
24 of retirement prior to attainment of age 60, and to the
25 retirement formula, for those born before January 1, 1936,
26 shall apply only to qualifying employees withdrawing on or
27 after July 18, 1985.
28 (k) Beginning on the effective date of this amendatory
29 Act of 1997 January 1, 1991, the minimum amount of employee's
30 annuity shall be $550 $350 per month for life for the
31 following classes of employees, without regard to the fact
32 that withdrawal occurred prior to the effective date of this
33 amendatory Act of 1997 January 1, 1991:
34 (1) any employee annuitant alive and receiving a
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1 life annuity on the effective date of this amendatory Act
2 of 1997 January 1, 1991, except a reciprocal annuity;
3 (2) any employee annuitant alive and receiving a
4 term annuity on the effective date of this amendatory Act
5 of 1997 January 1, 1991, except a reciprocal annuity;
6 (3) any employee annuitant alive and receiving a
7 reciprocal annuity on the effective date of this
8 amendatory Act of 1997 January 1, 1991, whose service in
9 this fund is at least 5 years;
10 (4) any employee annuitant withdrawing after age 60
11 on or after the effective date of this amendatory Act of
12 1997 January 1, 1991, with at least 10 years of service
13 in this fund.
14 The increases granted under items (1), (2) and (3) of
15 this subsection (k) shall not be limited by any other Section
16 of this Act.
17 (Source: P.A. 85-964; 86-1488.)
18 (40 ILCS 5/8-138.3 new)
19 Sec. 8-138.3. Early retirement incentive.
20 (a) To be eligible for the benefits provided in this
21 Section, an employee must:
22 (1) be a current contributor to the Fund who, on
23 November 1, 1997, is (i) in active payroll status as an
24 employee or (ii) receiving ordinary or duty disability
25 benefits under Section 8-160 or 8-161;
26 (2) have not previously retired under this Article;
27 (3) file with the Board before June 1, 1998, a
28 written application requesting the benefits provided in
29 this Section;
30 (4) withdraw from service on or after December 31,
31 1997 and on or before June 30, 1998; and
32 (5) by the date of withdrawal: (i) have attained
33 age 55 with at least 10 years of creditable service in
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1 this Fund and a total of at least 15 years of creditable
2 service in one or more of the participating systems under
3 the Retirement Systems Reciprocal Act, without including
4 any creditable service established under this Section; or
5 (ii) have attained age 50 with at least 10 years of
6 creditable service in this Fund and a total of at least
7 30 years of creditable service in one or more of the
8 participating systems under the Retirement Systems
9 Reciprocal Act, without including any creditable service
10 established under this Section.
11 A person is not eligible for the benefits provided in
12 this Section if the person (i) elects to receive the
13 alternative annuity for city officers under Section 8-243.2,
14 or (ii) elects to receive a retirement annuity calculated
15 under the alternative formula formerly set forth in Section
16 20-122.
17 (b) An eligible employee may establish up to 5 years of
18 creditable service under this Section, in increments of one
19 month, by making the contributions specified in subsection
20 (d). An eligible person must establish at least the amount
21 of creditable service necessary to bring his or her total
22 creditable service, including service in this Fund, service
23 established under this Section, and service in any of the
24 other participating systems under the Retirement Systems
25 Reciprocal Act, to a minimum of 20 years.
26 The creditable service under this Section may be used for
27 all purposes under this Article and the Retirement Systems
28 Reciprocal Act, except for the computation of average annual
29 salary and the determination of salary, earnings, or
30 compensation under this or any other Article of this Code.
31 (c) An eligible employee shall be entitled to have his
32 or her retirement annuity calculated in accordance with the
33 formula provided in Section 8-138, but with the following
34 exceptions:
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1 (1) The annuity shall not be subject to reduction
2 because of withdrawal or commencement of the annuity
3 before attainment of age 60.
4 (2) The annuity shall be subject to a maximum of
5 80% of the employee's highest average annual salary for
6 any 4 consecutive years within the last 10 years of
7 service, rather than the 75% maximum otherwise provided
8 in Section 8-138.
9 (d) For each month of creditable service established
10 under this Section, the employee must pay to the Fund an
11 employee contribution, to be calculated by the Fund, equal to
12 4.25% of the member's monthly salary rate on November 1,
13 1997. The employee may elect to pay the entire contribution
14 before the retirement annuity commences, or to have it
15 deducted from the annuity over a period not longer than 24
16 months. If the retired employee dies before the contribution
17 has been paid in full, the unpaid installments may be
18 deducted from any annuity or other benefit payable to the
19 employee's survivors.
20 All employee contributions paid under this Section shall
21 be deemed contributions made by employees for annuity
22 purposes under Section 8-173, and shall be made and credited
23 to a special reserve, without interest. Employee
24 contributions paid under this Section may be refunded under
25 the same terms and conditions as are applicable to other
26 employee contributions for retirement annuity.
27 (e) Notwithstanding Section 8-165, an annuitant who
28 reenters service under this Article after receiving a
29 retirement annuity based on benefits provided under this
30 Section thereby forfeits the right to continue to receive
31 those benefits, and shall have his or her retirement annuity
32 recalculated at the appropriate time without the benefits
33 provided in this Section.
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1 (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
2 Sec. 8-150.1. Minimum annuities for widows. The widow
3 (otherwise eligible for widow's annuity under other Sections
4 of this Article 8) of an employee hereinafter described, who
5 retires from service or dies while in the service subsequent
6 to the effective date of this amendatory provision, and for
7 which widow the amount of widow's annuity and widow's prior
8 service annuity combined, fixed or provided for such widow
9 under other provisions of this Article is less than the
10 amount provided in this Section, shall, from and after the
11 date her otherwise provided annuity would begin, in lieu of
12 such otherwise provided widow's and widow's prior service
13 annuity, be entitled to the following indicated amount of
14 annuity:
15 (a) The widow of any employee who dies while in service
16 on or after the date on which he attains age 60 if the death
17 occurs before July 1, 1990, or on or after the date on which
18 he attains age 55 if the death occurs on or after July 1,
19 1990, with at least 20 years of service, or on or after the
20 date on which he attains age 50 if the death occurs on or
21 after the effective date of this amendatory Act of 1997 with
22 at least 30 years of service, shall be entitled to an annuity
23 equal to one-half of the amount of annuity which her deceased
24 husband would have been entitled to receive had he withdrawn
25 from the service on the day immediately preceding the date of
26 his death, conditional upon such widow having attained the
27 age of 60 or more years on such date if the death occurs
28 before July 1, 1990, or age 55 or more if the death occurs on
29 or after July 1, 1990. Except as provided in subsection (k),
30 this such amount of widow's annuity shall not, however,
31 exceed the sum of $500 a month if the employee's death in
32 service occurs before January 23, 1987. The widow's annuity
33 shall not be limited to a maximum dollar amount if the
34 employee's death in service occurs on or after January 23,
-57- LRB9000609EGfgam30
1 1987.
2 If the employee dies in service before July 1, 1990, and
3 if such widow of such described employee shall not be 60 or
4 more years of age on such date of death, the amount provided
5 in the immediately preceding paragraph for a widow 60 or more
6 years of age, shall, in the case of such younger widow, be
7 reduced by 0.25% for each month that her then attained age is
8 less than 60 years if the employee was born before January 1,
9 1936 or dies in service on or after January 1, 1988, or by
10 0.5% for each month that her then attained age is less than
11 60 years if the employee was born on or after July 1, 1936
12 and dies in service before January 1, 1988.
13 If the employee dies in service on or after July 1, 1990,
14 and if the widow of the employee has not attained age 55 on
15 or before the employee's date of death, the amount otherwise
16 provided in this subsection (a) shall be reduced by 0.25% for
17 each month that her then attained age is less than 55 years.
18 (b) The widow of any employee who dies subsequent to the
19 date of his retirement on annuity, and who so retired on or
20 after the date on which he attained the age of 60 or more
21 years if retirement occurs before July 1, 1990, or on or
22 after the date on which he attained age 55 if retirement
23 occurs on or after July 1, 1990, with at least 20 years of
24 service, or on or after the date on which he attained age 50
25 if the retirement occurs on or after the effective date of
26 this amendatory Act of 1997 with at least 30 years of
27 service, shall be entitled to an annuity equal to one-half of
28 the amount of annuity which her deceased husband received as
29 of the date of his retirement on annuity, conditional upon
30 such widow having attained the age of 60 or more years on the
31 date of her husband's retirement on annuity if retirement
32 occurs before July 1, 1990, or age 55 or more if retirement
33 occurs on or after July 1, 1990. Except as provided in
34 subsection (k), this such amount of widow's annuity shall
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1 not, however, exceed the sum of $500 a month if the
2 employee's death occurs before January 23, 1987. The widow's
3 annuity shall not be limited to a maximum dollar amount if
4 the employee's death occurs on or after January 23, 1987,
5 regardless of the date of retirement; provided that, if
6 retirement was before January 23, 1987, the employee or
7 eligible spouse repays the excess spouse refund with interest
8 at the effective rate from the date of refund to the date of
9 repayment.
10 If the date of the employee's retirement on annuity is
11 before July 1, 1990, and if such widow of such described
12 employee shall not have attained such age of 60 or more years
13 on such date of her husband's retirement on annuity, the
14 amount provided in the immediately preceding paragraph for a
15 widow 60 or more years of age on the date of her husband's
16 retirement on annuity, shall, in the case of such then
17 younger widow, be reduced by 0.25% for each month that her
18 then attained age was less than 60 years if the employee was
19 born before January 1, 1936 or withdraws from service on or
20 after January 1, 1988, or by 0.5% for each month that her
21 then attained age is less than 60 years if the employee was
22 born on or after January 1, 1936 and withdraws from service
23 before January 1, 1988.
24 If the date of the employee's retirement on annuity is on
25 or after July 1, 1990, and if the widow of the employee has
26 not attained age 55 by the date of the employee's retirement
27 on annuity, the amount otherwise provided in this subsection
28 (b) shall be reduced by 0.25% for each month that her then
29 attained age is less than 55 years.
30 (c) The foregoing provisions relating to minimum
31 annuities for widows shall not apply to the widow of any
32 former municipal employee receiving an annuity from the fund
33 on August 9, 1965 or on the effective date of this amendatory
34 provision, who re-enters service as a municipal employee,
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1 unless such employee renders at least 3 years of additional
2 service after the date of re-entry.
3 (d) In computing the amount of annuity which the husband
4 specified in the foregoing paragraphs (a) and (b) of this
5 Section would have been entitled to receive, or received,
6 such amount shall be the annuity to which such husband would
7 have been, or was entitled, before reduction in the amount of
8 his annuity for the purposes of the voluntary optional
9 reversionary annuity provided for in Sec. 8-139 of this
10 Article, if such option was elected.
11 (e) (Blank). The amendatory provisions of part (a) and
12 (b) of this Section (increasing the maximum from $300 to $400
13 a month) shall be effective as of July 1, 1971, and apply in
14 the case of every qualifying widow whose husband dies while
15 in service on or after July 1, 1971 or withdraws and enters
16 on annuity on or after July 1, 1971.
17 (f) (Blank). The amendments of part (a) and (b) of this
18 Section by this amendatory Act of 1983 (increasing the
19 maximum from $400 to $500 a month) shall be effective as of
20 January 1, 1984 and shall apply in the case of every
21 qualifying widow whose husband dies while in the service on
22 or after January 1, 1984, or withdraws and enters on annuity
23 on or after January 1, 1984.
24 (g) The amendatory provisions of this amendatory Act of
25 1985 relating to annuity discount because of age for widows
26 of employees born before January 1, 1936, shall apply only to
27 qualifying widows of employees withdrawing or dying in
28 service on or after July 18, 1985.
29 (h) Beginning on the effective date of this amendatory
30 Act of 1997 January 1, 1991, the minimum amount of widow's
31 annuity shall be $500 $300 per month for life for the
32 following classes of widows, without regard to the fact that
33 the death of the employee occurred prior to the effective
34 date of this amendatory Act of 1997 January 1, 1991:
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1 (1) any widow annuitant alive and receiving a life
2 annuity on the effective date of this amendatory Act of
3 1997 January 1, 1991, except a reciprocal annuity;
4 (2) any widow annuitant alive and receiving a term
5 annuity on the effective date of this amendatory Act of
6 1997 January 1, 1991, except a reciprocal annuity;
7 (3) any widow annuitant alive and receiving a
8 reciprocal annuity on the effective date of this
9 amendatory Act of 1997 January 1, 1991, whose employee
10 spouse's service in this fund was at least 5 years;
11 (4) the widow of an employee with at least 10 years
12 of service in this fund who dies after retirement, if the
13 retirement occurred prior to the effective date of this
14 amendatory Act of 1997 January 1, 1991;
15 (5) the widow of an employee with at least 10 years
16 of service in this fund who dies after retirement, if
17 withdrawal occurs on or after the effective date of this
18 amendatory Act of 1997 January 1, 1991;
19 (6) the widow of an employee who dies in service
20 with at least 5 years of service in this fund, if the
21 death in service occurs on or after the effective date of
22 this amendatory Act of 1997 January 1, 1991.
23 The increases granted under items (1), (2), (3) and (4)
24 of this subsection (h) shall not be limited by any other
25 Section of this Act.
26 (i) The widow of an employee who retired or died in
27 service on or after January 1, 1985 and before July 1, 1990,
28 at age 55 or older, and with at least 35 years of service
29 credit, shall be entitled to have her widow's annuity
30 increased, effective January 1, 1991, to an amount equal to
31 50% of the retirement annuity that the deceased employee
32 received on the date of retirement, or would have been
33 eligible to receive if he had retired on the day preceding
34 the date of his death in service, provided that if the widow
-61- LRB9000609EGfgam30
1 had not attained age 60 by the date of the employee's
2 retirement or death in service, the amount of the annuity
3 shall be reduced by 0.25% for each month that her then
4 attained age was less than age 60 if the employee's
5 retirement or death in service occurred on or after January
6 1, 1988, or by 0.5% for each month that her attained age is
7 less than age 60 if the employee's retirement or death in
8 service occurred prior to January 1, 1988. However, in cases
9 where a refund of excess contributions for widow's annuity
10 has been paid by the Fund, the increase in benefit provided
11 by this subsection (i) shall be contingent upon repayment of
12 the refund to the Fund with interest at the effective rate
13 from the date of refund to the date of payment.
14 (j) If a deceased employee is receiving a retirement
15 annuity at the time of death and that death occurs on or
16 after the effective date of this amendatory Act of 1997, the
17 widow may elect to receive, in lieu of any other annuity
18 provided under this Article, 50% of the deceased employee's
19 retirement annuity at the time of death reduced by 0.25% for
20 each month that the widow's age on the date of death is less
21 than 55. However, in cases where a refund of excess
22 contributions for widow's annuity has been paid by the Fund,
23 the benefit provided by this subsection (j) is contingent
24 upon repayment of the refund to the Fund with interest at the
25 effective rate from the date of refund to the date of
26 payment.
27 (k) For widows of employees who died before January 23,
28 1987 after retirement on annuity or in service, the maximum
29 dollar amount limitation on widow's annuity shall cease to
30 apply, beginning with the first annuity payment after the
31 effective date of this amendatory Act of 1997; except that if
32 a refund of excess contributions for widow's annuity has been
33 paid by the Fund, the increase resulting from this subsection
34 (k) shall not begin before the refund has been repaid to the
-62- LRB9000609EGfgam30
1 Fund, together with interest at the effective rate from the
2 date of the refund to the date of repayment.
3 (Source: P.A. 85-964; 86-1488.)
4 (40 ILCS 5/8-154) (from Ch. 108 1/2, par. 8-154)
5 Sec. 8-154. Maximum annuities.
6 (1) The annuities to an employee and his widow, are
7 subject to the following limitations:
8 (a) No age and service annuity, or age and service and
9 prior service annuity combined, in excess of 60% of the
10 highest salary of an employee, and no minimum annuity in
11 excess of the amount provided in Section 8-138 or set forth
12 as a maximum in any other Section of this Code relating to
13 minimum annuities for municipal employees included under
14 Article 8 of this Code shall be payable to any employee -
15 excepting to the extent that the annuity may exceed such per
16 cent or amount under Section 8-137 and 8-137.1 providing for
17 automatic increases after retirement.
18 (b) No annuity in excess of 60% of such highest salary
19 shall be payable to a widow if death of an employee results
20 solely from injury incurred in the performance of an act of
21 duty; provided, the annuity for a widow, or a widow's annuity
22 plus compensation annuity, shall not exceed $500 per month if
23 the employee's death occurs before January 23, 1987, except
24 as provided in paragraph (d). The widow's annuity, or a
25 widow's annuity plus compensation annuity, shall not be
26 limited to a maximum dollar amount if the employee's death
27 occurs on or after January 23, 1987, regardless of the date
28 of injury.
29 (c) No annuity in excess of 50% of such highest salary
30 shall be payable to a widow in the case of death resulting in
31 whole or in part from any cause other than injury incurred in
32 the performance of an act of duty; provided, the annuity for
33 a widow, or a widow's annuity plus supplemental annuity,
-63- LRB9000609EGfgam30
1 shall not exceed $500 per month if the employee's death
2 occurs before January 23, 1987, except as provided in
3 paragraph (d). The widow's annuity, or widow's annuity plus
4 supplemental annuity, shall not be limited to a maximum
5 dollar amount if the employee's death occurs on or after
6 January 23, 1987.
7 (d) For widows of employees who died before January 23,
8 1987 after retirement on annuity or in service, the maximum
9 dollar amount limitation on widow's annuity (or widow's
10 annuity plus compensation or supplemental annuity) shall
11 cease to apply, beginning with the first annuity payment
12 after the effective date of this amendatory Act of 1997;
13 except that if a refund of excess contributions for widow's
14 annuity has been paid by the Fund, the increase resulting
15 from this paragraph (d) shall not begin before the refund has
16 been repaid to the Fund, together with interest at the
17 effective rate from the date of the refund to the date of
18 repayment.
19 (2) If when an employee's annuity is fixed, the amount
20 accumulated to his credit therefor, as of his age at such
21 time exceeds the amount necessary for the annuity, all
22 contributions for annuity purposes after the date on which
23 the accumulated sums to the credit of such employee for
24 annuity purposes would first have provided such employee with
25 such amount of annuity as of his age at such date shall be
26 refunded when he enters upon annuity, with interest at the
27 effective rate.
28 If the aforesaid annuity so fixed is not payable, but a
29 larger amount is payable as a minimum annuity, such refund
30 shall be reduced by 5/12 of the value of the difference in
31 the annuity payable and the amount theretofore fixed, as the
32 value of such difference may be at the date and as of the age
33 of the employee when his annuity is granted; provided that if
34 the employee was credited with city contributions for any
-64- LRB9000609EGfgam30
1 period for which he made no contribution, or a contribution
2 of less than 3 1/4% of salary, a further reduction in the
3 refund shall be made by the equivalent of what he would have
4 contributed during such period less his actual contributions,
5 had the rate of employee contributions in force on the
6 effective date been in effect throughout his entire service,
7 prior to such effective date, with interest computed on such
8 amounts at the effective rate.
9 (3) If at the time the annuity for a wife is fixed, the
10 employee's credit for a widow's annuity exceeds that
11 necessary to provide such an annuity equal to the maximum
12 annuity provided in this section, all employee contributions
13 for such annuity, for service after the date on which the
14 accumulated sums to the credit of such employee for the
15 purpose of providing widow's annuity would first have
16 provided such widow with such amount of annuity, if such
17 annuity were computed on the basis of the Combined Annuity
18 Mortality Table with interest at 3% per annum with ages at
19 date of determination taken as specified in this Article,
20 shall be refunded to the employee, with interest at the
21 effective rate. If the employee was credited with city
22 contributions for widow's annuity for any service prior to
23 the effective date, any amount so refundable, shall be
24 reduced by the equivalent of what he would have contributed,
25 had his contributions for widow's annuity been made at the
26 rate of 1% throughout his entire service, prior to the
27 effective date, with interest on such amounts at the
28 effective rate.
29 (4) If at the death of an employee prior to age 65, the
30 credit for widow's annuity exceeds that necessary to provide
31 the maximum annuity prescribed in this section, all employee
32 contributions for annuity purposes, for service after the
33 date on which the accumulated sums to the credit of such
34 employee for the purpose of providing such maximum annuity
-65- LRB9000609EGfgam30
1 for the widow would first have provided such widow with such
2 amount of annuity, if such annuity were computed on the basis
3 of the Combined Annuity Mortality Table with interest at 3%
4 per annum with ages at date of determination taken as
5 specified in this Article, shall be refunded to the widow,
6 with interest at the effective rate.
7 If the employee was credited with city contributions for
8 any period of service during which he was not required to
9 make a contribution, or made a contribution of less than 3
10 1/4% of salary, the refund shall be reduced by the equivalent
11 of the contributions he would have made during such period,
12 less any amount he contributed, had the rate of employee
13 contributions in effect on the effective date been in force
14 throughout his entire service, prior to the effective date,
15 with interest on such amounts at the effective rate; provided
16 that if the employee was credited with city contributions for
17 widow's annuity for any service prior to the effective date,
18 any amount so refundable shall be further reduced by the
19 equivalent of what would have contributed had he made
20 contributions for widow's annuity at the rate of 1%
21 throughout his entire service; prior to such effective date,
22 with interest on such amounts at the effective rate.
23 (d) The amendatory provisions of part 1, paragraphs (b)
24 and (c) of this Section (increasing the maximum from $300 to
25 $400 a month) shall be effective as of July 1, 1971, and
26 apply in the case of every qualifying widow whose husband
27 dies while in service on or after July 1, 1971 or withdraws
28 and enters on annuity on or after July 1, 1971.
29 (e) The amendments of part 1, paragraphs (b) and (c) of
30 this Section by this amendatory Act of 1983 (increasing the
31 maximum from $400 to $500 a month) shall be effective as of
32 January 1, 1984 and apply in the case of every qualifying
33 widow whose husband dies in the service on or after January
34 1, 1984 or withdraws and enters on annuity on or after
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1 January 1, 1984.
2 (Source: P.A. 85-964.)
3 (40 ILCS 5/8-159) (from Ch. 108 1/2, par. 8-159)
4 Sec. 8-159. Amount of child's annuity. Beginning on the
5 effective date of this amendatory Act of 1997 January 1,
6 1988, the amount of a child's annuity shall be $220 $120 per
7 month for each child while the spouse of the deceased
8 employee parent survives, and $250 $150 per month for each
9 child when no such spouse survives, and shall be subject to
10 the following limitations:
11 (1) If the combined annuities for the widow and children
12 of an employee whose death resulted from injury incurred in
13 the performance of duty, or for the children where a widow
14 does not exist, exceed 70% of the employee's final monthly
15 salary, the annuity for each child shall be reduced pro rata
16 so that the combined annuities for the family shall not
17 exceed such limitation.
18 (2) For the family of an employee whose death is the
19 result of any cause other than injury incurred in the
20 performance of duty, in which the combined annuities for the
21 family exceed 60% of the employee's final monthly salary, the
22 annuity for each child shall be reduced pro rata so that the
23 combined annuities for the family shall not exceed such
24 limitation.
25 (3) The increase in child's annuity provided by this
26 amendatory Act of 1997 1987 shall apply to all child's
27 annuities being paid on or after the effective date of this
28 amendatory Act of 1997. January 1, 1988, subject to The
29 above limitations on the combined annuities for a family in
30 parts (1) and (2) of this Section do not apply to families of
31 employees who died before the effective date of this
32 amendatory Act of 1997.
33 (4) The amendments to parts (1) and (2) of this Section
-67- LRB9000609EGfgam30
1 made by Public Act 84-1472 (eliminating the further
2 limitation that the monthly combined family amount shall not
3 exceed $500 plus 10% of the employee's final monthly salary)
4 shall apply in the case of every qualifying child whose
5 employee parent dies in the service or enters on annuity on
6 or after January 23, 1987.
7 (Source: P.A. 85-964.)
8 (40 ILCS 5/8-226) (from Ch. 108 1/2, par. 8-226)
9 Sec. 8-226. Computation of service. In computing the
10 term of service of an employee prior to the effective date,
11 the entire period beginning on the date he was first
12 appointed and ending on the day before the effective date,
13 except any intervening period during which he was separated
14 by withdrawal from service, shall be counted for all purposes
15 of this Article, except that for any employee who was not in
16 service on the day before the effective date, service
17 rendered prior to such date shall not be considered for the
18 purposes of Section 8-138.
19 For a person employed by an employer for whom this
20 Article was in effect prior to January 1, 1950, from whose
21 salary deductions are first made under this Article after
22 December 31, 1949, any period of service rendered prior to
23 the effective date, unless he was in service on the day
24 before the effective date, shall not be counted as service.
25 The time a person was an employee of any territory
26 annexed to the city prior to the effective date shall be
27 counted as a period of service.
28 In computing the term of service of any employee
29 subsequent to the day before the effective date, the
30 following periods shall be counted as periods of service for
31 age and service, widow's and child's annuity purposes:
32 (a) The time during which he performed the duties
33 of his position;
-68- LRB9000609EGfgam30
1 (b) Vacations, leaves of absence with whole or part
2 pay, and leaves of absence without pay not longer than 90
3 days;
4 (c) Leaves of absence without pay during which a
5 participant is employed full-time by a local labor
6 organization that represents municipal employees,
7 provided that (1) the participant continues to make
8 employee contributions to the Fund as though he were an
9 active employee, based on the regular salary rate
10 received by the participant for his municipal employment
11 immediately prior to such leave of absence (and in the
12 case of such employment prior to December 9, 1987, pays
13 to the Fund an amount equal to the employee contributions
14 for such employment plus regular interest thereon as
15 calculated by the board), and based on his current salary
16 with such labor organization after the effective date of
17 this amendatory Act of 1991, (2) after January 1, 1989
18 the participant, or the labor organization on the
19 participant's behalf, makes contributions to the Fund as
20 though it were the employer, in the same amount and same
21 manner as specified under this Article, based on the
22 regular salary rate received by the participant for his
23 municipal employment immediately prior to such leave of
24 absence, and based on his current salary with such labor
25 organization after the effective date of this amendatory
26 Act of 1991, and (3) the participant does not receive
27 credit in any pension plan established by the local labor
28 organization based on his employment by the organization;
29 (d) Any period of disability for which he received
30 (i) a disability benefit under this Article, or (ii) a
31 temporary total disability benefit under the Workers'
32 Compensation Act if the disability results from a
33 condition commonly termed heart attack or stroke or any
34 other condition falling within the broad field of
-69- LRB9000609EGfgam30
1 coronary involvement or heart disease, or (iii) whole or
2 part pay;
3 (e) Any period for which contributions and service
4 credit have been transferred to this Fund under
5 subsection (d) of Section 9-121.1 or subsection (d) of
6 Section 12-127.1 of this Code.
7 For a person employed by an employer in which the 1921
8 Act was in effect prior to January 1, 1950, from whose salary
9 deductions are first made under the 1921 Act or this Article
10 after December 31, 1949, any period of service rendered
11 subsequent to the effective date and prior to the date he
12 became an employee and contributor, shall not be counted as a
13 period of service under this Article, except such period for
14 which he made payment as provided in Section 8-230 of this
15 Article, in which case such period shall be counted as a
16 period of service for all annuity purposes hereunder.
17 In computing the term of service of an employee
18 subsequent to the day before the effective date for ordinary
19 disability benefit purposes, all periods described in the
20 preceding paragraph, except any such period for which he
21 receives ordinary disability benefit, shall be counted as
22 periods of service; provided, that for any person employed by
23 an employer in which this Article was in effect prior to
24 January 1, 1950, from whose salary deductions are first made
25 under this Article after December 31, 1949, any period of
26 service rendered subsequent to the effective date and prior
27 to the date he became an employee and contributor, shall not
28 be counted as a period of service for ordinary disability
29 benefit purposes, unless the person made payment for the
30 period as provided in Section 8-230 of this Article, in which
31 case the period shall be counted as a period of service for
32 ordinary disability purposes for periods of disability on or
33 after the effective date of this amendatory Act of 1997.
34 Overtime or extra service shall not be included in
-70- LRB9000609EGfgam30
1 computing any term of service. Not more than 1 year of
2 service shall be allowed for service rendered during any
3 calendar year.
4 (Source: P.A. 86-272; 86-1488.)
5 (40 ILCS 5/8-226.1) (from Ch. 108 1/2, par. 8-226.1)
6 Sec. 8-226.1. Transfer to General Assembly Retirement
7 System.
8 (a) Any active member of the General Assembly Retirement
9 System (and until June 1, 1998, any former member of that
10 System who has not yet retired) may apply for transfer of his
11 or her credits and creditable service accumulated under this
12 Fund to the General Assembly System. Such credits and
13 creditable service shall be transferred forthwith. Payment
14 by this Fund to the General Assembly Retirement System shall
15 be made at the same time and shall consist of:
16 (1) the amounts accumulated to the credit of the
17 applicant, including interest, on the books of the Fund
18 on the date of transfer, but excluding any additional or
19 optional credits, which credits shall be refunded to the
20 applicant; and
21 (2) municipality credits computed and credited
22 under this Article including interest, on the books of
23 the Fund on the date the member terminated service under
24 the Fund.
25 Participation in this Fund as to any credits transferred
26 under this Section shall terminate on the date of transfer.
27 (b) An active member of the General Assembly Retirement
28 System (and until June 1, 1998, a former member of that
29 System who has not yet retired) who has service credits and
30 creditable service under the Fund may establish additional
31 service credits and creditable service for periods during
32 which he or she was an elected official and could have
33 elected to participate but did not so elect. Service credits
-71- LRB9000609EGfgam30
1 and creditable service may be established by payment to the
2 fund of an amount equal to the contributions the applicant he
3 would have made if he or she had elected to participate, plus
4 interest to the date of payment.
5 (c) An active member of the General Assembly Retirement
6 System (and until June 1, 1998, a former member of that
7 System who has not yet retired) may reinstate service and
8 service credits terminated upon receipt of a separation
9 benefit, by payment to the Fund of the amount of the
10 separation benefit plus interest thereon to the date of
11 payment.
12 (d) An active member of the General Assembly having no
13 service credits or creditable service in the Fund may
14 establish service credit and creditable service for periods
15 during which he was an employee and could have elected to
16 participate in the Fund but did not so elect, by paying to
17 the Fund prior to January 1, 1990 an amount equal to the
18 contributions he would have made if he had elected to
19 participate, plus interest thereon at 6% per annum compounded
20 annually from such period to the date of payment.
21 Any active member of the General Assembly may apply for
22 transfer of his credits and creditable service established
23 under this subsection (d) to any annuity and benefit fund
24 established under Article 12 of this Act. Such credits and
25 creditable service shall be transferred forthwith, together
26 with a payment from this Fund to the designated Article 12
27 fund consisting of the amounts accumulated to the credit of
28 the applicant under this subsection (d), including
29 corresponding employer contributions and interest, on the
30 books of the Fund on the date of transfer. Participation in
31 this Fund as to any credits transferred under this subsection
32 shall terminate on the date of transfer.
33 (e) The application of this Section is not limited to
34 persons who are in service on or after the effective date of
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1 this amendatory Act of 1997.
2 (Source: P.A. 86-272.)
3 (40 ILCS 5/9-121.1) (from Ch. 108 1/2, par. 9-121.1)
4 Sec. 9-121.1. General Assembly transfer.
5 (a) Any active (and until February 1, 1993, any former)
6 member of the General Assembly Retirement System (and until
7 June 1, 1998, a former member of that System who has not yet
8 retired) may apply for transfer of his or her credits and
9 creditable service accumulated under this Fund to the General
10 Assembly System. Such credits and creditable service shall
11 be transferred forthwith. Payment by this Fund to the
12 General Assembly Retirement System shall be made at the same
13 time and shall consist of:
14 (1) the amounts accumulated to the credit of the
15 applicant, including interest, on the books of the Fund
16 on the date of transfer, but excluding any additional or
17 optional credits, which credits shall be refunded to the
18 applicant; and
19 (2) employer contributions municipality credits
20 computed and credited under this Article, including
21 interest, on the books of the Fund on the date of
22 transfer the member terminated service under the Fund.
23 Participation in this Fund as to any credits transferred
24 under this Section shall terminate on the date of transfer.
25 (b) An active (and until February 1, 1993, a former)
26 member of the General Assembly Retirement System (and until
27 June 1, 1998, a former member of that System who has not yet
28 retired) who has service credits and creditable service under
29 the Fund may establish additional service credits and
30 creditable service for periods during which he or she was an
31 elected official and could have elected to participate but
32 did not so elect. Service credits and creditable service may
33 be established by payment to the fund of an amount equal to
-73- LRB9000609EGfgam30
1 the contributions the applicant he would have made if he or
2 she had elected to participate, plus interest to the date of
3 payment.
4 (c) An active (and until February 1, 1993, a former)
5 member of the General Assembly Retirement System (and until
6 June 1, 1998, a former member of that System who has not yet
7 retired) may reinstate service and service credits terminated
8 upon receipt of a separation benefit, by payment to the Fund
9 of the amount of the separation benefit plus interest thereon
10 to the date of payment.
11 (d) An active (and until February 1, 1993, a former)
12 member of the General Assembly having no service credits or
13 creditable service in the Fund may establish service credit
14 and creditable service for periods during which he was
15 employed by the county but did not participate in the Fund,
16 by paying to the Fund prior to July 1, 1991 an amount equal
17 to the contributions he would have made if he had
18 participated, plus interest thereon at 6% per annum
19 compounded annually from such period to the date of payment.
20 (e) Any active member of the General Assembly may apply
21 for transfer of his credits and creditable service
22 established under subsection (c) or (d) to any annuity and
23 benefit fund established under Article 5, 8 or 12 of this
24 Act. Such credits and creditable service shall be
25 transferred forthwith, together with a payment from this Fund
26 to the designated Article 5, 8 or 12 fund consisting of the
27 amounts accumulated to the credit of the applicant under
28 subsection (c) or (d), including the corresponding employer
29 contributions and interest, on the books of the Fund on the
30 date of transfer. Participation in this Fund as to any
31 credits transferred under this subsection shall terminate on
32 the date of transfer.
33 (f) The application of this Section is not limited to
34 persons who are in service on or after the effective date of
-74- LRB9000609EGfgam30
1 this amendatory Act of 1997.
2 (Source: P.A. 86-27; 86-273; 86-1028; 86-1488; 87-794.)
3 (40 ILCS 5/9-134.3 new)
4 Sec. 9-134.3. Early retirement incentives.
5 (a) To be eligible for the benefits provided in this
6 Section, a person must:
7 (1) be a current contributing member of the Fund
8 established under this Article who, on May 1, 1997 and
9 within 30 days prior to the date of retirement, is (i) in
10 active payroll status in a position of employment under
11 this Article or (ii) receiving disability benefits under
12 Section 9-156 or 9-157;
13 (2) have not previously retired from the Fund;
14 (3) file with the Board before October 1, 1997, a
15 written application requesting the benefits provided in
16 this Section;
17 (4) elect to retire under this Section on or after
18 September 1, 1997 and on or before February 28, 1998 (or
19 the date established under subsection (d), if
20 applicable);
21 (5) have attained age 55 on or before the date of
22 retirement and before February 28, 1998; and
23 (6) have at least 10 years of creditable service in
24 the Fund, excluding service in any of the other
25 participating systems under the Retirement Systems
26 Reciprocal Act, by the effective date of the retirement
27 annuity or February 28, 1998, whichever occurs first.
28 (b) An employee who qualifies for the benefits provided
29 under this Section shall be entitled to the following:
30 (1) The employee's retirement annuity, as
31 calculated under the other provisions of this Article,
32 shall be increased at the time of retirement by an amount
33 equal to 1% of the employee's average annual salary for
-75- LRB9000609EGfgam30
1 the highest 4 consecutive years within the last 10 years
2 of service, multiplied by the employee's number of years
3 of service credit in this Fund up to a maximum of 10
4 years; except that the total retirement annuity,
5 including any additional benefits elected under Section
6 9-121.6 or 9-179.3, shall not exceed 80% of that highest
7 average annual salary.
8 (2) If the employee's retirement annuity is
9 calculated under Section 9-134, the employee shall not be
10 subject to the reduction in retirement annuity because of
11 retirement below age 60 that is otherwise required under
12 that Section.
13 (c) A person who elects to retire under the provisions
14 of this Section thereby relinquishes his or her right, if
15 any, to have the retirement annuity calculated under the
16 alternative formula formerly set forth in Section 20-122 of
17 the Retirement Systems Reciprocal Act.
18 (d) In the case of an employee whose immediate
19 retirement could jeopardize public safety or create hardship
20 for the employer, the deadline for retirement provided in
21 subdivision (a)(4) of this Section may be extended to a
22 specified date, no later than August 31, 1998, by the
23 employee's department head, with the approval of the
24 President of the County Board. In the case of an employee
25 who is not employed by a department of the County, the
26 employee's "department head", for the purposes of this
27 Section, shall be a person designated by the President of the
28 County Board.
29 (e) Notwithstanding Section 9-161, an annuitant who
30 reenters service under this Article after receiving a
31 retirement annuity based on benefits provided under this
32 Section thereby forfeits the right to continue to receive
33 those benefits and shall have his or her retirement annuity
34 recalculated without the benefits provided in this Section.
-76- LRB9000609EGfgam30
1 (f) This Section also applies to the Fund established
2 under Article 10 of this Code.
3 (40 ILCS 5/10-104.1) (from Ch. 108 1/2, par. 10-104.1)
4 Sec. 10-104.1. Transfer to General Assembly Retirement
5 System.
6 (a) Any active member of the General Assembly Retirement
7 System (and until June 1, 1998, a former member of that
8 System who has not yet retired) may apply for transfer of his
9 or her credits and creditable service accumulated under this
10 fund to the General Assembly System. Such credits and
11 creditable service shall be transferred forthwith. Payment
12 by this Fund to the General Assembly Retirement System shall
13 be made at the same time and shall consist of:
14 (1) the amounts accumulated to the credit of the
15 applicant, including interest, on the books of the Fund
16 on the date of transfer, but excluding any additional or
17 optional credits, which credits shall be refunded to the
18 applicant; and
19 (2) municipality credits computed and credited
20 under this Article including interest, on the books of
21 the Fund on the date the member terminated service under
22 the Fund.
23 Participation in this Fund as to any credits transferred
24 under this Section shall terminate on the date of transfer.
25 (b) An active member of the General Assembly Retirement
26 System (and until June 1, 1998, a former member of that
27 System who has not yet retired) who has service credits and
28 creditable service under the Fund may establish additional
29 service credits and creditable service for periods during
30 which he or she was an elected official and could have
31 elected to participate but did not so elect. Service credits
32 and creditable service may be established by payment to the
33 fund of an amount equal to the contributions the applicant he
-77- LRB9000609EGfgam30
1 would have made if he or she had elected to participate, plus
2 interest to the date of payment.
3 (c) An active member of the General Assembly Retirement
4 System (and until June 1, 1998, a former member of that
5 System who has not yet retired) may reinstate service and
6 service credits terminated upon receipt of a separation
7 benefit, by payment to the Fund of the amount of the
8 separation benefit plus interest thereon to the date of
9 payment.
10 (d) The application of this Section is not limited to
11 persons who are in service on or after the effective date of
12 this amendatory Act of 1997.
13 (Source: P.A. 80-1419; 80-1438.)
14 (40 ILCS 5/11-125.1) (from Ch. 108 1/2, par. 11-125.1)
15 Sec. 11-125.1 Transfer to General Assembly Retirement
16 System.
17 (a) Any active member of the General Assembly Retirement
18 System (and until June 1, 1998, a former member of that
19 System who has not yet retired) may apply for transfer of his
20 or her credits and creditable service accumulated under this
21 Fund to the General Assembly System. Such credits and
22 creditable service shall be transferred forthwith. Payment
23 by this Fund to the General Assembly Retirement System shall
24 be made at the same time and shall consist of:
25 (1) the amounts accumulated to the credit of the
26 applicant, including interest, on the books of the Fund
27 on the date of transfer, but excluding any additional or
28 optional credits, which credits shall be refunded to the
29 applicant; and
30 (2) municipality credits computed and credited
31 under this Article including interest, on the books of
32 the Fund on the date the member terminated service under
33 the Fund.
-78- LRB9000609EGfgam30
1 Participation in this Fund as to any credits transferred
2 under this Section shall terminate on the date of transfer.
3 (b) An active member of the General Assembly Retirement
4 System (and until June 1, 1998, a former member of that
5 System who has not yet retired) who has service credits and
6 creditable service under the Fund may establish additional
7 service credits and creditable service for periods during
8 which he or she was an elected official and could have
9 elected to participate but did not so elect. Service credits
10 and creditable service may be established by payment to the
11 fund of an amount equal to the contributions the applicant he
12 would have made if he or she had elected to participate, plus
13 interest to the date of payment.
14 (c) An active member of the General Assembly Retirement
15 System (and until June 1, 1998, a former member of that
16 System who has not yet retired) may reinstate service and
17 service credits terminated upon receipt of a separation
18 benefit, by payment to the Fund of the amount of the
19 separation benefit plus interest thereon to the date of
20 payment.
21 (d) The application of this Section is not limited to
22 persons who are in service on or after the effective date of
23 this amendatory Act of 1997.
24 (Source: P.A. 80-1419; 80-1438.)
25 (40 ILCS 5/11-133.2 new)
26 Sec. 11-133.2. Early retirement incentive.
27 (a) To be eligible for the benefits provided in this
28 Section, an employee must:
29 (1) be a current contributor to the Fund who, on
30 November 1, 1997, is (i) in active payroll status as an
31 employee or (ii) receiving ordinary or duty disability
32 benefits under Section 11-155 or 11-156;
33 (2) have not previously retired under this Article;
-79- LRB9000609EGfgam30
1 (3) file with the Board before June 1, 1998, a
2 written application requesting the benefits provided in
3 this Section;
4 (4) withdraw from service on or after December 31,
5 1997 and on or before June 30, 1998; and
6 (5) by the date of withdrawal: (i) have attained
7 age 55 with at least 10 years of creditable service in
8 this Fund and a total of at least 15 years of creditable
9 service in one or more of the participating systems under
10 the Retirement Systems Reciprocal Act, without including
11 any creditable service established under this Section; or
12 (ii) have attained age 50 with at least 10 years of
13 creditable service in this Fund and a total of at least
14 30 years of creditable service in one or more of the
15 participating systems under the Retirement Systems
16 Reciprocal Act, without including any creditable service
17 established under this Section.
18 A person is not eligible for the benefits provided in
19 this Section if the person elects to receive a retirement
20 annuity calculated under the alternative formula formerly set
21 forth in Section 20-122.
22 (b) An eligible employee may establish up to 5 years of
23 creditable service under this Section, in increments of one
24 month, by making the contributions specified in subsection
25 (d). An eligible person must establish at least the amount
26 of creditable service necessary to bring his or her total
27 creditable service, including service in this Fund, service
28 established under this Section, and service in any of the
29 other participating systems under the Retirement Systems
30 Reciprocal Act, to a minimum of 20 years.
31 The creditable service under this Section may be used for
32 all purposes under this Article and the Retirement Systems
33 Reciprocal Act, except for the computation of average annual
34 salary and the determination of salary, earnings, or
-80- LRB9000609EGfgam30
1 compensation under this or any other Article of this Code.
2 (c) An eligible employee shall be entitled to have his
3 or her retirement annuity calculated in accordance with the
4 formula provided in Section 11-134, but with the following
5 exceptions:
6 (1) The annuity shall not be subject to reduction
7 because of withdrawal or commencement of the annuity
8 before attainment of age 60.
9 (2) The annuity shall be subject to a maximum of
10 80% of the employee's highest average annual salary for
11 any 4 consecutive years within the last 10 years of
12 service, rather than the 75% maximum otherwise provided
13 in Section 11-134.
14 (d) For each month of creditable service established
15 under this Section, the employee must pay to the Fund an
16 employee contribution, to be calculated by the Fund, equal to
17 4.25% of the member's monthly salary rate on November 1,
18 1997. The employee may elect to pay the entire contribution
19 before the retirement annuity commences, or to have it
20 deducted from the annuity over a period not longer than 24
21 months. If the retired employee dies before the contribution
22 has been paid in full, the unpaid installments may be
23 deducted from any annuity or other benefit payable to the
24 employee's survivors.
25 All employee contributions paid under this Section shall
26 be deemed contributions made by employees for annuity
27 purposes under Section 11-169 and shall be made and credited
28 to a special reserve, without interest. Employee
29 contributions paid under this Section may be refunded under
30 the same terms and conditions as are applicable to other
31 employee contributions for retirement annuity.
32 (e) Notwithstanding Section 11-161, an annuitant who
33 reenters service under this Article after receiving a
34 retirement annuity based on benefits provided under this
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1 Section thereby forfeits the right to continue to receive
2 those benefits, and shall have his or her retirement annuity
3 recalculated at the appropriate time without the benefits
4 provided in this Section.
5 (40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
6 Sec. 11-134. Minimum annuities.
7 (a) An employee whose withdrawal occurs after July 1,
8 1957 at age 60 or over, with 20 or more years of service, (as
9 service is defined or computed in Section 11-216), for whom
10 the age and service and prior service annuity combined is
11 less than the amount stated in this section, shall, from and
12 after the date of withdrawal, in lieu of all annuities
13 otherwise provided in this Article, be entitled to receive an
14 annuity for life of an amount equal to 1 2/3% for each year
15 of service, of the highest average annual salary for any 5
16 consecutive years within the last 10 years of service
17 immediately preceding the date of withdrawal; provided, that
18 in the case of any employee who withdraws on or after July 1,
19 1971, such employee age 60 or over with 20 or more years of
20 service, shall be entitled to instead receive an annuity for
21 life equal to 1.67% for each of the first 10 years of
22 service; 1.90% for each of the next 10 years of service;
23 2.10% for each year of service in excess of 20 but not
24 exceeding 30; and 2.30% for each year of service in excess of
25 30, based on the highest average annual salary for any 4
26 consecutive years within the last 10 years of service
27 immediately preceding the date of withdrawal.
28 An employee who withdraws after July 1, 1957 and before
29 January 1, 1988, with 20 or more years of service, before age
30 60, shall be entitled to an annuity, to begin not earlier
31 than age 55, if under such age at withdrawal, as computed in
32 the last preceding paragraph, reduced 0.25% if the employee
33 was born before January 1, 1936, or 0.5% if the employee was
-82- LRB9000609EGfgam30
1 born on or after January 1, 1936, for each full month or
2 fractional part thereof that his attained age when such
3 annuity is to begin is less than 60.
4 Any employee born before January 1, 1936 who withdraws
5 with 20 or more years of service, and any employee with 20 or
6 more years of service who withdraws on or after January 1,
7 1988, may elect to receive, in lieu of any other employee
8 annuity provided in this Section, an annuity for life equal
9 to 1.80% for each of the first 10 years of service, 2.00% for
10 each of the next 10 years of service, 2.20% for each year of
11 service in excess of 20, but not exceeding 30, and 2.40% for
12 each year of service in excess of 30, of the highest average
13 annual salary for any 4 consecutive years within the last 10
14 years of service immediately preceding the date of
15 withdrawal, to begin not earlier than upon attained age of 55
16 years, if under such age at withdrawal, reduced 0.25% for
17 each full month or fractional part thereof that his attained
18 age when annuity is to begin is less than 60; except that an
19 employee retiring on or after January 1, 1988, at age 55 or
20 over but less than age 60, having at least 35 years of
21 service, or an employee retiring on or after July 1, 1990, at
22 age 55 or over but less than age 60, having at least 30 years
23 of service, or an employee retiring on or after the effective
24 date of this amendatory Act of 1997, at age 55 or over but
25 less than age 60, having at least 25 years of service, shall
26 not be subject to the reduction in retirement annuity because
27 of retirement below age 60.
28 However, in the case of an employee who retired on or
29 after January 1, 1985 but before January 1, 1988, at age 55
30 or older and with at least 35 years of service, and who was
31 subject under this subsection (a) to the reduction in
32 retirement annuity because of retirement below age 60, that
33 reduction shall cease to be effective January 1, 1991, and
34 the retirement annuity shall be recalculated accordingly.
-83- LRB9000609EGfgam30
1 Any employee who withdraws on or after July 1, 1990, with
2 20 or more years of service, may elect to receive, in lieu of
3 any other employee annuity provided in this Section, an
4 annuity for life equal to 2.20% for each year of service of
5 the highest average annual salary for any 4 consecutive years
6 within the last 10 years of service immediately preceding the
7 date of withdrawal, to begin not earlier than upon attained
8 age of 55 years, if under such age at withdrawal, reduced
9 0.25% for each full month or fractional part thereof that his
10 attained age when annuity is to begin is less than 60; except
11 that an employee retiring at age 55 or over but less than age
12 60, having at least 30 years of service, shall not be subject
13 to the reduction in retirement annuity because of retirement
14 below age 60.
15 Any employee who withdraws on or after the effective date
16 of this amendatory Act of 1997 with 20 or more years of
17 service may elect to receive, in lieu of any other employee
18 annuity provided in this Section, an annuity for life equal
19 to 2.20%, for each year of service, of the highest average
20 annual salary for any 4 consecutive years within the last 10
21 years of service immediately preceding the date of
22 withdrawal, to begin not earlier than upon attainment of age
23 55 (age 50 if the employee has at least 30 years of service),
24 reduced 0.25% for each full month or remaining fractional
25 part thereof that the employee's attained age when annuity is
26 to begin is less than 60; except that an employee retiring at
27 age 50 or over with at least 30 years of service or at age 55
28 or over with at least 25 years of service shall not be
29 subject to the reduction in retirement annuity because of
30 retirement below age 60.
31 The maximum annuity payable under this paragraph (a) of
32 this Section shall not exceed 70% of highest average annual
33 salary in the case of an employee who withdraws prior to July
34 1, 1971, and 75% if withdrawal takes place on or after July
-84- LRB9000609EGfgam30
1 1, 1971. For the purpose of the minimum annuity provided in
2 said paragraphs $1,500 shall be considered the minimum annual
3 salary for any year; and the maximum annual salary to be
4 considered for the computation of such annuity shall be
5 $4,800 for any year prior to 1953, $6,000 for the years 1953
6 to 1956, inclusive, and the actual annual salary, as salary
7 is defined in this Article, for any year thereafter.
8 (b) For an employee receiving disability benefit, his
9 salary for annuity purposes under this section shall, for all
10 periods of disability benefit subsequent to the year 1956, be
11 the amount on which his disability benefit was based.
12 (c) An employee with 20 or more years of service, whose
13 entire disability benefit credit period expires prior to
14 attainment of age 55 while still disabled for service, shall
15 be entitled upon withdrawal to the larger of (1) the minimum
16 annuity provided above assuming that he is then age 55, and
17 reducing such annuity to its actuarial equivalent at his
18 attained age on such date, or (2) the annuity provided from
19 his age and service and prior service annuity credits.
20 (d) The minimum annuity provisions as aforesaid shall
21 not apply to any former employee receiving an annuity from
22 the fund, and who re-enters service as an employee, unless he
23 renders at least 3 years of additional service after the date
24 of re-entry.
25 (e) An employee in service on July 1, 1947, or who
26 became a contributor after July 1, 1947 and prior to July 1,
27 1950, or who shall become a contributor to the fund after
28 July 1, 1950 prior to attainment of age 70, who withdraws
29 after age 65 with less than 20 years of service, for whom the
30 annuity has been fixed under the foregoing sections of this
31 Article shall, in lieu of the annuity so fixed, receive an
32 annuity as follows:
33 Such amount as he could have received had the accumulated
34 amounts for annuity been improved with interest at the
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1 effective rate to the date of his withdrawal, or to
2 attainment of age 70, whichever is earlier, and had the city
3 contributed to such earlier date for age and service annuity
4 the amount that would have been contributed had he been under
5 age 65, after the date his annuity was fixed in accordance
6 with this Article, and assuming his annuity were computed
7 from such accumulations as of his age on such earlier date.
8 The annuity so computed shall not exceed the annuity which
9 would be payable under the other provisions of this section
10 if the employee was credited with 20 years of service and
11 would qualify for annuity thereunder.
12 (f) In lieu of the annuity provided in this or in any
13 other section of this Article, an employee having attained
14 age 65 with at least 15 years of service who withdraws from
15 service on or after July 1, 1971 and whose annuity computed
16 under other provisions of this Article is less than the
17 amount provided under this paragraph shall be entitled to
18 receive a minimum annual annuity for life equal to 1% of the
19 highest average annual salary for any 4 consecutive years
20 within the last 10 years of service immediately preceding
21 retirement for each year of his service plus the sum of $25
22 for each year of service. Such annual annuity shall not
23 exceed the maximum percentages stated under paragraph (a) of
24 this Section of such highest average annual salary.
25 (g) Any annuity payable under the preceding subsections
26 of this Section 11-134 shall be paid in equal monthly
27 installments.
28 (h) The amendatory provisions of part (a) and (f) of
29 this Section shall be effective July 1, 1971 and apply in the
30 case of every qualifying employee withdrawing on or after
31 July 1, 1971.
32 (i) The amendatory provisions of this amendatory Act of
33 1985 relating to the discount of annuity because of
34 retirement prior to attainment of age 60 and increasing the
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1 retirement formula for those born before January 1, 1936,
2 shall apply only to qualifying employees withdrawing on or
3 after August 16, 1985.
4 (j) Beginning on the effective date of this amendatory
5 Act of 1997 January 1, 1991, the minimum amount of employee's
6 annuity shall be $550 $350 per month for life for the
7 following classes of employees, without regard to the fact
8 that withdrawal occurred prior to the effective date of this
9 amendatory Act of 1997 January 1, 1991:
10 (1) any employee annuitant alive and receiving a
11 life annuity on the effective date of this amendatory Act
12 of 1997 January 1, 1991, except a reciprocal annuity;
13 (2) any employee annuitant alive and receiving a
14 term annuity on the effective date of this amendatory Act
15 of 1997 January 1, 1991, except a reciprocal annuity;
16 (3) any employee annuitant alive and receiving a
17 reciprocal annuity on the effective date of this
18 amendatory Act of 1997 January 1, 1991, whose service in
19 this fund is at least 5 years;
20 (4) any employee annuitant withdrawing after age 60
21 on or after the effective date of this amendatory Act of
22 1997 January 1, 1991, with at least 10 years of service
23 in this fund.
24 The increases granted under items (1), (2) and (3) of
25 this subsection (j) shall not be limited by any other Section
26 of this Act.
27 (Source: P.A. 85-964; 86-1488.)
28 (40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
29 Sec. 11-145.1. Minimum annuities for widows. The widow
30 otherwise eligible for widow's annuity under other Sections
31 of this Article 11, of an employee hereinafter described, who
32 retires from service or dies while in the service subsequent
33 to the effective date of this amendatory provision, and for
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1 which widow the amount of widow's annuity and widow's prior
2 service annuity combined, fixed or provided for such widow
3 under other provisions of said Article 11 is less than the
4 amount hereinafter provided in this section, shall, from and
5 after the date her otherwise provided annuity would begin, in
6 lieu of such otherwise provided widow's and widow's prior
7 service annuity, be entitled to the following indicated
8 amount of annuity:
9 (a) The widow of any employee who dies while in service
10 on or after the date on which he attains age 60 if the death
11 occurs before July 1, 1990, or on or after the date on which
12 he attains age 55 if the death occurs on or after July 1,
13 1990, with at least 20 years of service, or on or after the
14 date on which he attains age 50 if the death occurs on or
15 after the effective date of this amendatory Act of 1997 with
16 at least 30 years of service, shall be entitled to an annuity
17 equal to one-half of the amount of annuity which her deceased
18 husband would have been entitled to receive had he withdrawn
19 from the service on the day immediately preceding the date of
20 his death, conditional upon such widow having attained age 60
21 on or before such date if the death occurs before July 1,
22 1990, or age 55 if the death occurs on or after July 1, 1990.
23 Except as provided in subsection (j), the widow's annuity
24 shall not, however, exceed the sum of $500 a month if the
25 employee's death in service occurs before January 23, 1987.
26 The widow's annuity shall not be limited to a maximum dollar
27 amount if the employee's death in service occurs on or after
28 January 23, 1987.
29 If the employee dies in service before July 1, 1990, and
30 if such widow of such described employee shall not be 60 or
31 more years of age on such date of death, the amount provided
32 in the immediately preceding paragraph for a widow 60 or more
33 years of age, shall, in the case of such younger widow, be
34 reduced by 0.25% for each month that her then attained age is
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1 less than 60 years if the employee was born before January 1,
2 1936, or dies in service on or after January 1, 1988, or 0.5%
3 for each month that her then attained age is less than 60
4 years if the employee was born on or after January 1, 1936
5 and dies in service before January 1, 1988.
6 If the employee dies in service on or after July 1, 1990,
7 and if the widow of the employee has not attained age 55 on
8 or before the employee's date of death, the amount otherwise
9 provided in this subsection (a) shall be reduced by 0.25% for
10 each month that her then attained age is less than 55 years.
11 (b) The widow of any employee who dies subsequent to the
12 date of his retirement on annuity, and who so retired on or
13 after the date on which he attained age 60 if retirement
14 occurs before July 1, 1990, or on or after the date on which
15 he attained age 55 if retirement occurs on or after July 1,
16 1990, with at least 20 years of service, or on or after the
17 date on which he attained age 50 if the retirement occurs on
18 or after the effective date of this amendatory Act of 1997
19 with at least 30 years of service, shall be entitled to an
20 annuity equal to one-half of the amount of annuity which her
21 deceased husband received as of the date of his retirement on
22 annuity, conditional upon such widow having attained age 60
23 on or before the date of her husband's retirement on annuity
24 if retirement occurs before July 1, 1990, or age 55 if
25 retirement occurs on or after July 1, 1990. Except as
26 provided in subsection (j), this Such amount of widow's
27 annuity shall not, however, exceed the sum of $500 a month if
28 the employee's death occurs before January 23, 1987. The
29 widow's annuity shall not be limited to a maximum dollar
30 amount if the employee's death occurs on or after January 23,
31 1987, regardless of the date of retirement; provided that, if
32 retirement was before January 23, 1987, the employee or
33 eligible spouse repays the excess spouse refund with interest
34 at the effective rate from the date of refund to the date of
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1 repayment.
2 If the date of the employee's retirement on annuity is
3 before July 1, 1990, and if such widow of such described
4 employee shall not have attained such age of 60 or more years
5 on such date of her husband's retirement on annuity, the
6 amount provided in the immediately preceding paragraph for a
7 widow 60 or more years of age on the date of her husband's
8 retirement on annuity, shall, in the case of such then
9 younger widow, be reduced by 0.25% for each month that her
10 then attained age was less than 60 years if the employee was
11 born before January 1, 1936, or withdraws from service on or
12 after January 1, 1988, or 0.5% for each month that her then
13 attained age was less than 60 years if the employee was born
14 on or after January 1, 1936 and withdraws from service before
15 January 1, 1988.
16 If the date of the employee's retirement on annuity is on
17 or after July 1, 1990, and if the widow of the employee has
18 not attained age 55 by the date of the employee's retirement
19 on annuity, the amount otherwise provided in this subsection
20 (b) shall be reduced by 0.25% for each month that her then
21 attained age is less than 55 years.
22 (c) The foregoing provisions relating to minimum
23 annuities for widows shall not apply to the widow of any
24 former employee receiving an annuity from the fund on August
25 2, 1965 or on the effective date of this amendatory
26 provision, who re-enters service as a former employee, unless
27 such employee renders at least 3 years of additional service
28 after the date of re-entry.
29 (d) (Blank). The amendatory provisions of part (a) and
30 (b) of this Section (increasing the maximum from $300 to $400
31 a month) shall be effective as of July 1, 1971, and apply in
32 the case of every qualifying widow whose husband dies while
33 in service on or after July 1, 1971 and prior to January 1,
34 1984, or withdraws and enters on annuity on or after July 1,
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1 1971 and prior to January 1, 1984.
2 (e) (Blank). The changes made in parts (a) and (b) of
3 this Section by this amendatory Act of 1983 (increasing the
4 maximum from $400 to $500 per month) shall apply to every
5 qualifying widow whose husband dies in the service on or
6 after January 1, 1984, or withdraws and enters on annuity on
7 or after January 1, 1984.
8 (f) The amendments to this Section by this amendatory
9 Act of 1985, relating to changing the discount because of age
10 from 1/2 of 1% to 0.25% per month for widows of employees
11 born before January 1, 1936, shall apply only to qualifying
12 widows whose husbands die while in the service on or after
13 August 16, 1985 or withdraw and enter on annuity on or after
14 August 16, 1985.
15 (g) Beginning on the effective date of this amendatory
16 Act of 1997 January 1, 1991, the minimum amount of widow's
17 annuity shall be $500 $300 per month for life for the
18 following classes of widows, without regard to the fact that
19 the death of the employee occurred prior to the effective
20 date of this amendatory Act of 1997 January 1, 1991:
21 (1) any widow annuitant alive and receiving a term
22 annuity on the effective date of this amendatory Act of
23 1997 January 1, 1991, except a reciprocal annuity;
24 (2) any widow annuitant alive and receiving a life
25 annuity on the effective date of this amendatory Act of
26 1997 January 1, 1991, except a reciprocal annuity;
27 (3) any widow annuitant alive and receiving a
28 reciprocal annuity on the effective date of this
29 amendatory Act of 1997 January 1, 1991, whose employee
30 spouse's service in this fund was at least 5 years;
31 (4) the widow of an employee with at least 10 years
32 of service in this fund who dies after retirement, if the
33 retirement occurred prior to the effective date of this
34 amendatory Act of 1997 January 1, 1991;
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1 (5) the widow of an employee with at least 10 years
2 of service in this fund who dies after retirement, if
3 withdrawal occurs on or after the effective date of this
4 amendatory Act of 1997 January 1, 1991;
5 (6) the widow of an employee who dies in service
6 with at least 5 years of service in this fund, if the
7 death in service occurs on or after the effective date of
8 this amendatory Act of 1997 January 1, 1991.
9 The increases granted under items (1), (2), (3) and (4)
10 of this subsection (g) shall not be limited by any other
11 Section of this Act.
12 (h) The widow of an employee who retired or died in
13 service on or after January 1, 1985 and before July 1, 1990,
14 at age 55 or older, and with at least 35 years of service
15 credit, shall be entitled to have her widow's annuity
16 increased, effective January 1, 1991, to an amount equal to
17 50% of the retirement annuity that the deceased employee
18 received on the date of retirement, or would have been
19 eligible to receive if he had retired on the day preceding
20 the date of his death in service, provided that if the widow
21 had not attained age 60 by the date of the employee's
22 retirement or death in service, the amount of the annuity
23 shall be reduced by 0.25% for each month that her then
24 attained age was less than age 60 if the employee's
25 retirement or death in service occurred on or after January
26 1, 1988, or by 0.5% for each month that her attained age is
27 less than age 60 if the employee's retirement or death in
28 service occurred prior to January 1, 1988. However, in cases
29 where a refund of excess contributions for widow's annuity
30 has been paid by the Fund, the increase in benefit provided
31 by this subsection (h) (i) shall be contingent upon repayment
32 of the refund to the Fund with interest at the effective rate
33 from the date of refund to the date of payment.
34 (i) If a deceased employee is receiving a retirement
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1 annuity at the time of death and that death occurs on or
2 after the effective date of this amendatory Act of 1997, the
3 widow may elect to receive, in lieu of any other annuity
4 provided under this Article, 50% of the deceased employee's
5 retirement annuity at the time of death reduced by 0.25% for
6 each month that the widow's age on the date of death is less
7 than 55. However, in cases where a refund of excess
8 contributions for widow's annuity has been paid by the Fund,
9 the benefit provided by this subsection (i) is contingent
10 upon repayment of the refund to the Fund with interest at the
11 effective rate from the date of refund to the date of
12 payment.
13 (j) For widows of employees who died before January 23,
14 1987 after retirement on annuity or in service, the maximum
15 dollar amount limitation on widow's annuity shall cease to
16 apply, beginning with the first annuity payment after the
17 effective date of this amendatory Act of 1997; except that if
18 a refund of excess contributions for widow's annuity has been
19 paid by the Fund, the increase resulting from this subsection
20 (j) shall not begin before the refund has been repaid to the
21 Fund, together with interest at the effective rate from the
22 date of the refund to the date of repayment.
23 (Source: P.A. 85-964; 86-1488.)
24 (40 ILCS 5/11-149) (from Ch. 108 1/2, par. 11-149)
25 Sec. 11-149. Maximum annuities.
26 (1) The annuities to an employee and his widow, are
27 subject to the following limitations:
28 (a) No age and service annuity or age and service and
29 prior service annuity combined in excess of 60% of highest
30 salary of an employee and no minimum annuity in excess of the
31 annuity provided in Section 11-134 or set forth as a maximum
32 in any other Section of this Code relating to minimum
33 annuities for employees included under Article 11 of this
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1 Code shall be payable to any employee excepting to the extent
2 that the annuity may exceed such per cent or amount under
3 Section 11-134.1 and 11-134.3 providing for automatic
4 increases after retirement.
5 (b) No annuity in excess of 60% of such highest salary
6 shall be payable to a widow if death of an employee resulted
7 from injury incurred in the performance of duty; provided,
8 the annuity to a widow, or a widow's annuity plus
9 compensation annuity shall not exceed $500 per month if the
10 employee's death occurs before January 23, 1987, except as
11 provided in paragraph (d). The widow's annuity, or a widow's
12 annuity plus compensation annuity, shall not be limited to a
13 maximum dollar amount if the employee's death occurs on or
14 after January 23, 1987, regardless of the date of injury.
15 (c) No annuity in excess of 50% of such highest salary
16 shall be payable to a widow in the case of death of an
17 employee from any cause other than injury incurred in the
18 performance of duty; provided, the annuity to a widow, or a
19 widow's annuity plus supplemental annuity, shall not exceed
20 $500 per month if the employee's death occurs before January
21 23, 1987, except as provided in paragraph (d). The widow's
22 annuity, or widow's annuity plus supplemental annuity, shall
23 not be limited to a maximum dollar amount if the employee's
24 death occurs on or after January 23, 1987.
25 (d) For widows of employees who died before January 23,
26 1987 after retirement on annuity or in service, the maximum
27 dollar amount limitation on widow's annuity (or widow's
28 annuity plus compensation or supplemental annuity) shall
29 cease to apply, beginning with the first annuity payment
30 after the effective date of this amendatory Act of 1997;
31 except that if a refund of excess contributions for widow's
32 annuity has been paid by the Fund, the increase resulting
33 from this paragraph (d) shall not begin before the refund has
34 been repaid to the Fund, together with interest at the
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1 effective rate from the date of the refund to the date of
2 repayment.
3 (2) If when an employee's annuity is fixed, the amount
4 accumulated to his credit therefor, as of his age at such
5 time, exceeds the amount necessary for the annuity, all
6 employee contributions for annuity purposes, after the date
7 on which the accumulated sums to the credit of such employee
8 for annuity purposes would first have provided such employee
9 with such amount of annuity as of his age at such date shall
10 be refunded when he enters upon annuity, with interest at the
11 effective rate.
12 If the aforesaid annuity so fixed is not payable, but a
13 larger amount is payable as a minimum annuity, such refund
14 shall be reduced by 5/12 of the value of the difference in
15 the annuity payable and the amount theretofore fixed as the
16 value of such difference may be at the date and as of the age
17 of the employee when his annuity begins; provided that if the
18 employee was credited with city contributions for any period
19 for which he made no contribution, or a contribution of less
20 than 3 1/4% of salary, a further reduction in the refund
21 shall be made by the equivalent of what he would have
22 contributed during such period less his actual contributions,
23 had the rate of employee contributions in force on the
24 effective date been in effect throughout his entire service,
25 prior to such effective date, with interest computed on such
26 amounts at the effective rate.
27 (3) If at the time the annuity for a wife is fixed, the
28 employee's credit for a widow's annuity exceeds that
29 necessary to provide the maximum annuity prescribed in this
30 section, all employee contributions for such widow's annuity
31 for service after the date on which the accumulated sums to
32 the credit of the employee for such annuity purposes would
33 first have provided the wife of such employee with such
34 amount of annuity if such annuity were computed on the basis
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1 of the combined annuity mortality table with interest at 3%
2 per annum with ages at date of determination taken as
3 specified in this article, shall be refunded to the employee,
4 with interest at the effective rate.
5 If the employee was credited with city contributions for
6 widow's annuity for any service prior to the effective date,
7 any amount so refundable, shall be reduced by the equivalent
8 of what he would have contributed, had his contributions for
9 widow's annuity been made at the rate of 1% throughout his
10 entire service, prior to the effective date, with interest on
11 such amounts at the effective rate.
12 (4) If at the death of an employee prior to age 65, the
13 credit for widow's annuity, exceeds that necessary to provide
14 the maximum annuity prescribed in this section, all employee
15 contributions for annuity purposes, for service after the
16 date on which the accumulated sums to the credit of such
17 employee for annuity purposes would first have provided such
18 widow with such amount of annuity if such annuity were
19 computed on the basis of the combined annuity mortality table
20 with interest at 3% per annum with ages at date of
21 determination taken as specified in this article, shall be
22 refunded to the widow, with applicable interest.
23 If the employee was credited with city contributions for
24 any period of service during which he was not required to
25 make a contribution, or made a contribution of less than 3
26 1/4% of salary, the refund shall be reduced by the equivalent
27 of the contributions he would have made during such period,
28 less any amount he contributed, had the rate of employee
29 contributions in effect on the effective date been in force
30 throughout his entire service, prior to the effective date,
31 with applicable interest; provided, that if the employee was
32 credited with city contributions for widow's annuity for any
33 service prior to the effective date, any amount so refundable
34 shall be further reduced by the equivalent of what he would
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1 have contributed had he made contributions for widow's
2 annuity at the rate of 1% throughout his entire service,
3 prior to such effective date, with applicable interest.
4 (5) The amendatory provisions of part 1, paragraphs (b)
5 and (c) of this Section (increasing the maximum from $300 to
6 $400 a month) shall be effective as of July 1, 1971, and
7 apply in the case of every qualifying widow whose husband
8 dies while in service on or after July 1, 1971 and prior to
9 January 1, 1984, or withdraws and enters on annuity on or
10 after July 1, 1971 and prior to January 1, 1984.
11 (6) The changes in paragraphs (b) and (c) of subsection
12 (1) of this Section made by this amendatory Act of 1983
13 (increasing the maximum from $400 to $500 per month) shall
14 apply to every qualifying widow whose husband dies in the
15 service on or after January 1, 1984, or withdraws and enters
16 on annuity on or after January 1, 1984.
17 (Source: P.A. 86-273.)
18 (40 ILCS 5/11-154) (from Ch. 108 1/2, par. 11-154)
19 Sec. 11-154. Amount of child's annuity. Beginning on
20 the effective date of this amendatory Act of 1997 January 1,
21 1988, the amount of a child's annuity shall be $220 $120 per
22 month for each child while the spouse of the deceased
23 employee parent survives, and $250 $150 per month for each
24 child when no such spouse survives, and shall be subject to
25 the following limitations:
26 (1) If the combined annuities for the widow and children
27 of an employee whose death resulted from injury incurred in
28 the performance of duty, or for the children where a widow
29 does not exist, exceed 70% of the employee's final monthly
30 salary, the annuity for each child shall be reduced pro rata
31 so that the combined annuities for the family shall not
32 exceed such limitation;
33 (2) For the family of an employee whose death is the
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1 result of any cause other than injury incurred in the
2 performance of duty, in which the combined annuities for the
3 family exceed 60% of the employee's final monthly salary, the
4 annuity for each child shall be reduced pro rata so that the
5 combined annuities for the family shall not exceed such
6 limitation.
7 A child's annuity shall be paid to the parent who is
8 providing for the child, unless another person has been
9 appointed the child's legal guardian.
10 The increase in child's annuity provided by this
11 amendatory Act of 1997 1987 shall apply to all child's
12 annuities being paid on or after the effective date of this
13 amendatory Act of 1997. January 1, 1988, subject to The above
14 limitations on the combined annuities for a family in parts
15 (1) and (2) of this Section do not apply to families of
16 employees who died before the effective date of this
17 amendatory Act of 1997.
18 (Source: P.A. 85-964.)
19 (40 ILCS 5/11-215) (from Ch. 108 1/2, par. 11-215)
20 Sec. 11-215. Computation of service.
21 (a) In computing the term of service of an employee
22 prior to the effective date, the entire period beginning on
23 the date he was first appointed and ending on the day before
24 the effective date, except any intervening period during
25 which he was separated by withdrawal from service, shall be
26 counted for all purposes of this Article. Only the first year
27 of each period of lay-off or leave of absence without pay,
28 continuing or extending for a period in excess of one year,
29 shall be counted as such service.
30 (b) For a person employed by an employer for whom this
31 Article was in effect prior to August 1, 1949, from whose
32 salary deductions are first made under this Article after
33 July 31, 1949, any period of service rendered prior to the
-98- LRB9000609EGfgam30
1 effective date, unless he was in service on the day before
2 the effective date, shall not be counted as service.
3 (c) In computing the term of service of an employee
4 subsequent to the day before the effective date, the
5 following periods of time shall be counted as periods of
6 service for annuity purposes:
7 (1) the time during which he performed the duties
8 of his position;
9 (2) leaves of absence with whole or part pay, and
10 leaves of absence without pay not longer than 90 days;
11 (3) leaves of absence without pay during which a
12 participant is employed full-time by a local labor
13 organization that represents municipal employees,
14 provided that (A) the participant continues to make
15 employee contributions to the Fund as though he were an
16 active employee, based on the regular salary rate
17 received by the participant for his municipal employment
18 immediately prior to such leave of absence (and in the
19 case of such employment prior to December 9, 1987, pays
20 to the Fund an amount equal to the employee contributions
21 for such employment plus regular interest thereon as
22 calculated by the board), and based on his current salary
23 with such labor organization after the effective date of
24 this amendatory Act of 1991, (B) after January 1, 1989
25 the participant, or the labor organization on the
26 participant's behalf, makes contributions to the Fund as
27 though it were the employer, in the same amount and same
28 manner as specified under this Article, based on the
29 regular salary rate received by the participant for his
30 municipal employment immediately prior to such leave of
31 absence, and based on his current salary with such labor
32 organization after the effective date of this amendatory
33 Act of 1991, and (C) the participant does not receive
34 credit in any pension plan established by the local labor
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1 organization based on his employment by the organization;
2 (4) any period of disability for which he received
3 (i) a disability benefit under this Article, or (ii) a
4 temporary total disability benefit under the Workers'
5 Compensation Act if the disability results from a
6 condition commonly termed heart attack or stroke or any
7 other condition falling within the broad field of
8 coronary involvement or heart disease, or (iii) whole or
9 part pay.
10 (d) For a person employed by an employer, or the
11 retirement board, in which "The 1935 Act" was in effect prior
12 to August 1, 1949, from whose salary deductions are first
13 made under "The 1935 Act" or this Article after July 31,
14 1949, any period of service rendered subsequent to the
15 effective date and prior to August 1, 1949, shall not be
16 counted as a period of service under this Article, except
17 such period for which he made payment, as provided in Section
18 11-221 of this Article, in which case such period shall be
19 counted as a period of service for all annuity purposes
20 hereunder.
21 (e) In computing the term of service of an employee
22 subsequent to the day before the effective date for ordinary
23 disability benefit purposes, the following periods of time
24 shall be counted as periods of service:
25 (1) any period during which he performed the duties
26 of his position;
27 (2) leaves of absence with whole or part pay;
28 (3) any period of disability for which he received
29 (i) a duty disability benefit under this Article, or (ii)
30 a temporary total disability benefit under the Workers'
31 Compensation Act if the disability results from a
32 condition commonly termed heart attack or stroke or any
33 other condition falling within the broad field of
34 coronary involvement or heart disease, or (iii) whole or
-100- LRB9000609EGfgam30
1 part pay.
2 However, any period of service rendered by an employee
3 contributor prior to the date he became a contributor to the
4 fund shall not be counted as a period of service for ordinary
5 disability purposes, unless the person made payment for the
6 period as provided in Section 11-221 of this Article, in
7 which case the period shall be counted as a period of service
8 for ordinary disability purposes for periods of disability on
9 or after the effective date of this amendatory Act of 1997.
10 Overtime or extra service shall not be included in
11 computing any term of service. Not more than 1 year of
12 service shall be allowed for service rendered during any
13 calendar year.
14 (Source: P.A. 86-272; 86-1488.)
15 (40 ILCS 5/12-127.1) (from Ch. 108 1/2, par. 12-127.1)
16 Sec. 12-127.1. Transfer to General Assembly Retirement
17 System.
18 (a) Any active (and until April 1, 1993, any former)
19 member of the General Assembly Retirement System (and until
20 June 1, 1998, a former member of that System who has not yet
21 retired) may apply for transfer of his or her credits and
22 creditable service accumulated under this Fund to the General
23 Assembly System. Such credits and creditable service shall
24 be transferred forthwith. Payment by this Fund to the
25 General Assembly Retirement System shall be made at the same
26 time and shall consist of:
27 (1) the amounts accumulated to the credit of the
28 applicant, including interest, on the books of the Fund
29 on the date of transfer, but excluding any additional or
30 optional credits, which credits shall be refunded to the
31 applicant; and
32 (2) municipality credits computed and credited
33 under this Article, including interest, on the books of
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1 the Fund on the date the member terminated service under
2 the Fund.
3 Participation in this Fund as to any credits transferred
4 under this Section shall terminate on the date of transfer.
5 (b) An active (and until April 1, 1993, a former) member
6 of the General Assembly Retirement System (and until June 1,
7 1998, a former member of that System who has not yet retired)
8 who has service credits and creditable service under the Fund
9 may establish additional service credits and creditable
10 service for periods during which he or she was an elected
11 official and could have elected to participate but did not so
12 elect. Service credits and creditable service may be
13 established by payment to the fund of an amount equal to the
14 contributions the applicant he would have made if he or she
15 had elected to participate, plus interest to the date of
16 payment.
17 (c) An active (and until April 1, 1993, a former) member
18 of the General Assembly Retirement System (and until June 1,
19 1998, a former member of that System who has not yet retired)
20 may reinstate service and service credits terminated upon
21 receipt of a separation benefit, by payment to the Fund of
22 the amount of the separation benefit plus interest thereon to
23 the date of payment.
24 (d) An active member of the General Assembly having no
25 service credits or creditable service in the Fund may
26 establish service credit and creditable service for periods
27 during which he was employed by the board of park
28 commissioners or the retirement board but did not participate
29 in the Fund, by paying to the Fund prior to July 1, 1992 an
30 amount equal to the contributions he would have made if he
31 had participated, plus interest thereon at 6% per annum
32 compounded annually from such period to the date of payment.
33 Any active member of the General Assembly may apply for
34 transfer of his credits and creditable service established
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1 under this subsection (d) to any annuity and benefit fund
2 established under Article 8 of this Act. Such credits and
3 creditable service shall be transferred forthwith, together
4 with a payment from this Fund to the designated Article 8
5 fund consisting of the amounts accumulated to the credit of
6 the applicant under this subsection (d), including the
7 corresponding employer contributions and interest, on the
8 books of the Fund on the date of transfer. Participation in
9 this Fund as to any credits transferred under this subsection
10 shall terminate on the date of transfer.
11 (e) The application of this Section is not limited to
12 persons who are in service on or after the effective date of
13 this amendatory Act of 1997.
14 (Source: P.A. 86-1488; 87-1265.)
15 (40 ILCS 5/13-801) (from Ch. 108 1/2, par. 13-801)
16 Sec. 13-801. Transfer of credits to General Assembly
17 Retirement System.
18 (a) Payments. Any active member of the General Assembly
19 Retirement System (and until June 1, 1998, a former member of
20 that System who has not yet retired) may apply for transfer
21 of his or her credits and creditable service accumulated
22 under this Fund to the General Assembly System. Such credits
23 and creditable service shall be transferred forthwith.
24 Payment by this Fund to the General Assembly Retirement
25 System shall be made at the same time and shall consist of:
26 (1) the amounts accumulated to the credit of the
27 applicant, including interest, on the books of the Fund
28 on the date of transfer, but excluding any additional or
29 optional credits, which credits shall be refunded to the
30 applicant; and
31 (2) municipality credits computed and credited
32 under this Article including interest, on the books of
33 the Fund on the date the member terminated service under
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1 the Fund.
2 Participation in this Fund as to any credits transferred
3 under this Section shall terminate on the date of transfer.
4 An active member of the General Assembly Retirement
5 System (and until June 1, 1998, a former member of that
6 System who has not yet retired) who has service credits and
7 creditable service under the Fund may establish additional
8 service credits and creditable service for periods during
9 which such member was an elected official and could have
10 elected to participate but did not so elect. Service credits
11 and creditable service may be established by payment to the
12 fund of an amount equal to the contributions such member
13 would have made if an election to participate had been made,
14 plus interest to the date of payment.
15 (b) Validation of service credits. An active member of
16 the General Assembly Retirement System (and until June 1,
17 1998, a former member of that System who has not yet retired)
18 having no service credits or creditable service in the Fund,
19 may establish service credit and creditable service for
20 periods during which such member was an employee of an
21 employer in an elective office and could have elected to
22 participate in the Fund but did not so elect.
23 Service credits and creditable service may be established
24 by payment to the Fund of an amount equal to the
25 contributions such member would have made if an election to
26 participate had been made, plus interest to the date of
27 payment, together with a like amount as the applicable
28 municipality credits including interest, but the total period
29 of such creditable service that may be validated shall not
30 exceed 8 years.
31 (c) Termination of continued participation. Persons
32 otherwise required or eligible to participate in the Fund who
33 elect to continue participation in the General Assembly
34 System under Section 2-117.1 may not participate in the Fund
-104- LRB9000609EGfgam30
1 for the duration of such continued participation under
2 Section 2-117.1.
3 Upon terminating such continued participation, a person
4 may transfer credits and creditable service accumulated under
5 Section 2-117.1 to this Fund, upon payment to this Fund of:
6 (1) the amount by which the employer and employee
7 contributions that would have been required if such
8 member had participated in this Fund during the period
9 for which credit under Section 2-117.1 is being
10 transferred, plus interest, exceeds the amounts actually
11 transferred under that Section to the Fund, and
12 (2) interest thereon at 6% per annum compounded
13 annually from the date of payment.
14 (d) The application of this Section is not limited to
15 persons who are in service on or after the effective date of
16 this amendatory Act of 1997.
17 (Source: P.A. 87-794.)
18 (40 ILCS 5/14-103.04) (from Ch. 108 1/2, par. 14-103.04)
19 Sec. 14-103.04. Department. "Department": Any
20 department, institution, board, commission, officer, court,
21 or any agency of the State having power to certify payrolls
22 to the State Comptroller authorizing payments of salary or
23 wages against State appropriations, or against trust funds
24 held by the State Treasurer, except those departments
25 included under the term "employer" in the State Universities
26 Retirement System. "Department" includes the Illinois
27 Development Finance Authority. "Department" also includes
28 the Illinois Comprehensive Health Insurance Board and the
29 Illinois Rural Bond Bank.
30 (Source: P.A. 86-676; 86-1488.)
31 (40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
32 Sec. 14-104. Service for which contributions permitted.
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1 Contributions provided for in this Section shall cover the
2 period of service granted, and be based upon employee's
3 compensation and contribution rate in effect on the date he
4 last became a member of the System; provided that for all
5 employment prior to January 1, 1969 the contribution rate
6 shall be that in effect for a noncovered employee on the date
7 he last became a member of the System. Contributions
8 permitted under this Section shall include regular interest
9 from the date an employee last became a member of the System
10 to date of payment.
11 These contributions must be paid in full before
12 retirement either in a lump sum or in installment payments in
13 accordance with such rules as may be adopted by the board.
14 (a) Any member may make contributions as required in
15 this Section for any period of service, subsequent to the
16 date of establishment, but prior to the date of membership.
17 (b) Any employee who had been previously excluded from
18 membership because of age at entry and subsequently became
19 eligible may elect to make contributions as required in this
20 Section for the period of service during which he was
21 ineligible.
22 (c) An employee of the Department of Insurance who,
23 after January 1, 1944 but prior to becoming eligible for
24 membership, received salary from funds of insurance companies
25 in the process of rehabilitation, liquidation, conservation
26 or dissolution, may elect to make contributions as required
27 in this Section for such service.
28 (d) Any employee who rendered service in a State office
29 to which he was elected, or rendered service in the elective
30 office of Clerk of the Appellate Court prior to the date he
31 became a member, may make contributions for such service as
32 required in this Section. Any member who served by
33 appointment of the Governor under the Civil Administrative
34 Code of Illinois and did not participate in this System may
-106- LRB9000609EGfgam30
1 make contributions as required in this Section for such
2 service.
3 (e) Any person employed by the United States government
4 or any instrumentality or agency thereof from January 1, 1942
5 through November 15, 1946 as the result of a transfer from
6 State service by executive order of the President of the
7 United States shall be entitled to prior service credit
8 covering the period from January 1, 1942 through December 31,
9 1943 as provided for in this Article and to membership
10 service credit for the period from January 1, 1944 through
11 November 15, 1946 by making the contributions required in
12 this Section. A person so employed on January 1, 1944 but
13 whose employment began after January 1, 1942 may qualify for
14 prior service and membership service credit under the same
15 conditions.
16 (f) An employee of the Department of Labor of the State
17 of Illinois who performed services for and under the
18 supervision of that Department prior to January 1, 1944 but
19 who was compensated for those services directly by federal
20 funds and not by a warrant of the Auditor of Public Accounts
21 paid by the State Treasurer may establish credit for such
22 employment by making the contributions required in this
23 Section. An employee of the Department of Agriculture of the
24 State of Illinois, who performed services for and under the
25 supervision of that Department prior to June 1, 1963, but was
26 compensated for those services directly by federal funds and
27 not paid by a warrant of the Auditor of Public Accounts paid
28 by the State Treasurer, and who did not contribute to any
29 other public employee retirement system for such service, may
30 establish credit for such employment by making the
31 contributions required in this Section.
32 (g) Any employee who executed a waiver of membership
33 within 60 days prior to January 1, 1944 may, at any time
34 while in the service of a department, file with the board a
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1 rescission of such waiver. Upon making the contributions
2 required by this Section, the member shall be granted the
3 creditable service that would have been received if the
4 waiver had not been executed.
5 (h) Until May 1, 1990, an employee who was employed on a
6 full-time basis by a regional planning commission for at
7 least 5 continuous years may establish creditable service for
8 such employment by making the contributions required under
9 this Section, provided that any credits earned by the
10 employee in the commission's retirement plan have been
11 terminated.
12 (i) Any person who rendered full time contractual
13 services to the General Assembly as a member of a legislative
14 staff may establish service credit for up to 8 years of such
15 services by making the contributions required under this
16 Section, provided that application therefor is made not later
17 than July 1, 1991.
18 (j) By paying the contributions otherwise required under
19 this Section, plus an amount determined by the Board to be
20 equal to the employer's normal cost of the benefit plus
21 interest, an employee may establish service credit for a
22 period of up to 2 years spent in active military service for
23 which he does not qualify for credit under Section 14-105,
24 provided that (1) he was not dishonorably discharged from
25 such military service, and (2) the amount of service credit
26 established by a member under this subsection (j), when added
27 to the amount of military service credit granted to the
28 member under subsection (b) of Section 14-105, shall not
29 exceed 5 years.
30 (k) An employee who was employed on a full-time basis by
31 the Illinois State's Attorneys Association Statewide
32 Appellate Assistance Service LEAA-ILEC grant project prior to
33 the time that project became the State's Attorneys Appellate
34 Service Commission, now the Office of the State's Attorneys
-108- LRB9000609EGfgam30
1 Appellate Prosecutor, an agency of State government, may
2 establish creditable service for not more than 60 months
3 service for such employment by making contributions required
4 under this Section.
5 (l) Any person who rendered contractual services to a
6 member of the General Assembly as a worker providing
7 constituent services to persons in the member's district may
8 establish creditable service for up to 8 years of those
9 contractual services by making the contributions required
10 under this Section. The System shall determine a full-time
11 salary equivalent for the purpose of calculating the required
12 contribution. To establish credit under this subsection, the
13 applicant must apply to the System by March 1, 1998.
14 (Source: P.A. 86-273; 86-1488; 87-794; 87-895; 87-1265.)
15 (40 ILCS 5/14-104.10 new)
16 Sec. 14-104.10. Illinois Development Finance Authority.
17 An employee may establish creditable service for periods
18 prior to the date upon which the Illinois Development Finance
19 Authority first becomes a department (as defined in Section
20 14-103.04) during which he or she was employed by the
21 Illinois Development Finance Authority or the Illinois
22 Industrial Development Authority, by applying in writing and
23 paying to the System an amount equal to (i) employee
24 contributions for the period for which credit is being
25 established, based upon the employee's compensation and the
26 applicable contribution rate in effect on the date he or she
27 last became a member of the System, plus (ii) the employer's
28 normal cost of the credit established, plus (iii) interest on
29 the amounts in items (i) and (ii) at the rate of 2.5% per
30 year, compounded annually, from the date the applicant last
31 became a member of the System to the date of payment. This
32 payment must be paid in full before retirement, either in a
33 lump sum or in installment payments in accordance with the
-109- LRB9000609EGfgam30
1 rules of the Board.
2 (40 ILCS 5/14-105.1) (from Ch. 108 1/2, par. 14-105.1)
3 Sec. 14-105.1. General Assembly transfers.
4 (a) Any active (and until February 1, 1993, any former)
5 member of the General Assembly Retirement System (and until
6 June 1, 1998, a former member of that System who has not yet
7 retired) may apply for transfer of all or any part of his or
8 her credits and creditable service accumulated under this
9 System to the General Assembly System or a Fund established
10 under Article 5 or 12 of this Code. Such credits and
11 creditable service shall be transferred forthwith. Payment
12 by this System to the General Assembly Retirement System or
13 the Fund established under Article 5 or 12 shall be made at
14 the same time and shall consist of:
15 (1) the amounts accumulated to the credit of the
16 applicant for the service to be transferred, including
17 regular interest, on the books of the System on the date
18 of transfer; and
19 (2) employer contributions in an amount equal to
20 the amount of member contributions as determined under
21 subparagraph (1).
22 Participation in this System as to any credits transferred
23 under this Section shall terminate on the date of transfer.
24 (b) An active (and until February 1, 1993, a former)
25 member of the General Assembly Retirement System (and until
26 June 1, 1998, a former member of that System who has not yet
27 retired) who has service credits and creditable service under
28 the System may establish additional service credits and
29 creditable service for periods during which he or she was an
30 elected official and could have elected to participate but
31 did not so elect. Service credits and creditable service may
32 be established by payment to the System of an amount equal to
33 the contributions the applicant he would have made if he or
-110- LRB9000609EGfgam30
1 she had elected to participate, plus regular interest to the
2 date of payment.
3 (c) An active (and until February 1, 1993, a former)
4 member of the General Assembly Retirement System (and until
5 June 1, 1998, a former member of that System who has not yet
6 retired) may reinstate service and service credits terminated
7 upon receipt of a separation benefit, by payment to the
8 System of the amount of the separation benefit plus regular
9 interest thereon to the date of payment.
10 (d) An active member of this System may reinstate
11 creditable service that was terminated upon transfer under
12 subsection (a) and has been retransferred back to this System
13 under Section 2-117.4 of this Code by applying to the System
14 in writing within 6 months after the effective date of this
15 amendatory Act and paying to the System an amount to be
16 determined by the Board, equal to (1) the difference between
17 the amount of employee and employer contributions for that
18 service as defined in this Section and the amount repaid to
19 this System under Section 2-117.4, plus (2) regular interest
20 thereon from the date of the transfer to the Article 2 system
21 under this Section to the date of payment.
22 (e) The application of this Section is not limited to
23 persons who are in service on or after the effective date of
24 this amendatory Act of 1997.
25 (Source: P.A. 86-27; 86-273; 86-1028; 86-1488; 87-794.)
26 (40 ILCS 5/14-105.3) (from Ch. 108 1/2, par. 14-105.3)
27 Sec. 14-105.3. Transfer to Article 9 or 18 system. Any
28 active (and until February 1, 1998, any former) participant
29 in member of the Judges Retirement System and, between
30 January 1 and January 15, 1983, any deputy sheriff who is an
31 active member of a Fund created under Article 9 of this Act
32 may apply for transfer of his credits and creditable service
33 accumulated under this System to the Judges Retirement System
-111- LRB9000609EGfgam30
1 or such Article 9 Fund, respectively. Such credits and
2 creditable service shall be transferred forthwith. Payment
3 by this System to the Judges Retirement System or such
4 Article 9 Fund shall be made at the same time and shall
5 consist of:
6 (1) the amounts accumulated to the credit of the
7 applicant, including interest, on the books of the System
8 on the date of transfer; and
9 (2) employer contributions in an amount equal to
10 the amount of member contributions as determined under
11 subparagraph (1).
12 Participation in this System as to any credits transferred
13 under this Section shall terminate on the date of transfer.
14 (Source: P.A. 82-768.)
15 (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
16 Sec. 15-112. Final rate of earnings. "Final rate of
17 earnings": For an employee who is paid on an hourly basis or
18 who receives an annual salary in installments during 12
19 months of each academic year, the average annual earnings
20 during the 48 consecutive calendar month period ending with
21 the last day of final termination of employment or the 4
22 consecutive academic years of service in which the employee's
23 earnings were the highest, whichever is greater. For any
24 other employee, the average annual earnings during the 4
25 consecutive academic years of service in which his or her
26 earnings were the highest. For an employee with less than 48
27 months or 4 consecutive academic years of service, the
28 average earnings during his or her entire period of service.
29 The earnings of an employee with more than 36 months of
30 service prior to the date of becoming a participant are, for
31 such period, considered equal to the average earnings during
32 the last 36 months of such service. For an employee on leave
33 of absence with pay, or on leave of absence without pay who
-112- LRB9000609EGfgam30
1 makes contributions during such leave, earnings are assumed
2 to be equal to the basic compensation on the date the leave
3 began. For an employee on disability leave, earnings are
4 assumed to be equal to the basic compensation on the date
5 disability occurs or the average earnings during the 24
6 months immediately preceding the month in which disability
7 occurs, whichever is greater.
8 For a participant who retires on or after the effective
9 date of this amendatory Act of 1997 with at least 20 years of
10 service as a firefighter or police officer under this
11 Article, the final rate of earnings shall be the annual rate
12 of earnings received by the participant on his or her last
13 day as a firefighter or police officer under this Article, if
14 that is greater than the final rate of earnings as calculated
15 under the other provisions of this Section.
16 If a participant is an employee for at least 6 months
17 during the academic year in which his or her employment is
18 terminated, the annual final rate of earnings shall be 25% of
19 the sum of (1) the annual basic compensation for that year,
20 and (2) the amount earned during the 36 months immediately
21 preceding that year, if this is greater than the final rate
22 of earnings as calculated under the other provisions of this
23 Section.
24 In the determination of the final rate of earnings for an
25 employee, that part of an employee's earnings for any
26 academic year beginning after June 30, 1997, which exceeds
27 the employee's earnings with that employer for the preceding
28 year by more than 20 percent shall be excluded; in the event
29 that an employee has more than one employer this limitation
30 shall be calculated separately for the earnings with each
31 employer. In making such calculation, only the basic
32 compensation of employees shall be considered, without regard
33 to vacation or overtime or to contracts for summer
34 employment.
-113- LRB9000609EGfgam30
1 The following are not considered as earnings in
2 determining final rate of earnings: separation pay,
3 retirement pay, payment in lieu of unused sick leave and
4 payments from an employer for the period used in determining
5 final rate of earnings for any purpose other than services
6 rendered, leave of absence or vacation granted during that
7 period, and vacation of up to 56 work days allowed upon
8 termination of employment under a vacation policy of an
9 employer which was in effect on or before January 1, 1977.
10 Intermittent periods of service shall be considered as
11 consecutive in determining final rate of earnings.
12 (Source: P.A. 84-1472.)
13 (40 ILCS 5/15-113.2) (from Ch. 108 1/2, par. 15-113.2)
14 Sec. 15-113.2. Service for leaves of absence. "Service
15 for leaves of absence" includes those periods of leaves of
16 absence at less than 50% pay, except military leave and
17 periods of disability leave in excess of 60 days, for which
18 the employee pays the contributions required under Section
19 15-157 in accordance with rules prescribed by the board based
20 upon the employee's basic compensation on the date the leave
21 begins, or in the case of leave for service with a teacher
22 organization, based upon the actual compensation received by
23 the employee for such service after January 26, 1988, if the
24 employee so elects within 30 days of that date or the date
25 the leave for service with a teacher organization begins,
26 whichever is later; provided that the employee (1) returns to
27 employment covered by this system at the expiration of the
28 leave, or within 30 days after the termination of a
29 disability which occurs during the leave and continues this
30 employment at a percentage of time equal to or greater than
31 the percentage of time immediately preceding the leave of
32 absence for at least 8 consecutive months or a period equal
33 to the period of the leave, whichever is less, or (2) is
-114- LRB9000609EGfgam30
1 precluded from meeting the foregoing conditions because of
2 disability or death. If service credit is denied because the
3 employee fails to meet these conditions, the contributions
4 covering the leave of absence shall be refunded without
5 interest. The return to employment condition does not apply
6 if the leave of absence is for service with a teacher
7 organization and the leave of absence is in effect on the
8 effective date of this amendatory Act of 1993.
9 Service credit provided under this Section shall not
10 exceed 3 years in any period of 10 years, unless the employee
11 is on special leave granted by the employer for service with
12 a teacher organization. Commencing with the fourth year in
13 any period of 10 years, a participant on such special leave
14 is also required to pay employer contributions equal to the
15 normal cost as defined in Section 15-155, based upon the
16 employee's basic compensation on the date the leave begins,
17 or based upon the actual compensation received by the
18 employee for service with a teacher organization if the
19 employee has so elected.
20 (Source: P.A. 86-1488; 87-1265.)
21 (40 ILCS 5/15-113.3) (from Ch. 108 1/2, par. 15-113.3)
22 Sec. 15-113.3. Service for periods of military service.
23 "Service for periods of military service": Those periods,
24 not exceeding 5 years, during which a person served in the
25 armed forces of the United States, of which all but 2 years
26 must have immediately followed a period of employment with an
27 employer under this system or the State Employees' Retirement
28 System of Illinois; provided that the person received a
29 discharge other than dishonorable and again became an
30 employee under this system within one year after discharge.
31 However, for the up to 2 years of military service not
32 immediately following employment, the applicant must make
33 contributions to the System (1) at the rates provided in
-115- LRB9000609EGfgam30
1 Section 15-157 based upon the employee's basic compensation
2 on the last date as a participating employee prior to such
3 military service, or on the first date as a participating
4 employee after such military service, whichever is greater,
5 plus (2) an amount determined by the board to be equal to the
6 employer's normal cost of the benefits accrued for such
7 military service, plus (3) interest on items (1) and (2) at
8 the effective rate from the later of the date of first
9 membership in the System or the date of conclusion of
10 military service to the date of payment. The change in the
11 required contribution for purchased military credit made by
12 this amendatory Act of 1993 does not entitle any person to a
13 refund of contributions already paid.
14 The changes to this Section made by this amendatory Act
15 of 1991 shall apply not only to persons who on or after its
16 effective date are in service under the System, but also to
17 persons whose employment terminated prior to that date,
18 whether or not the person is an annuitant on that date. In
19 the case of an annuitant who applies for credit allowable
20 under this Section for a period of military service that did
21 not immediately follow employment, and who has made the
22 required contributions for such credit, the annuity shall be
23 recalculated to include the additional service credit, with
24 the increase taking effect on the date the System received
25 written notification of the annuitant's intent to purchase
26 the credit, if payment of all the required contributions is
27 made within 60 days of such notice, or else on the first
28 annuity payment date following the date of payment of the
29 required contributions. In calculating the automatic annual
30 increase for an annuity that has been recalculated under this
31 Section, the increase attributable to the additional service
32 allowable under this amendatory Act of 1991 shall be included
33 in the calculation of automatic annual increases accruing
34 after the effective date of the recalculation.
-116- LRB9000609EGfgam30
1 (Source: P.A. 87-794; 87-1265.)
2 (40 ILCS 5/15-113.4) (from Ch. 108 1/2, par. 15-113.4)
3 Sec. 15-113.4. Service for unused sick leave. "Service
4 for unused sick leave": A participant who is an employee
5 under this System or one of the other systems subject to
6 Article 20 of this Code within 60 days immediately preceding
7 the date on which his or her retirement annuity begins, is
8 entitled to credit for service for that portion of unused
9 sick leave earned in the course of employment with an
10 employer and credited on the date of termination of
11 employment by an employer for which payment is not received,
12 in accordance with the following schedule: 30 through 90
13 full calendar days and 20 through 59 full work days of unused
14 sick leave, 1/4 of a year of service; 91 through 180 full
15 calendar days and 60 through 119 full work days, 1/2 of a
16 year of service; 181 through 270 full calendar days and 120
17 through 179 full work days, 3/4 of a year of service; 271
18 through 360 full calendar days and 180 through 240 full work
19 days, one year of service. Only uncompensated, unused sick
20 leave earned in accordance with an employer's sick leave
21 accrual policy generally applicable to employees or a class
22 of employees shall be taken into account in calculating
23 service credit under this Section. Any uncompensated, unused
24 sick leave granted by an employer to facilitate the hiring,
25 retirement, termination, or other special circumstances of an
26 employee shall not be taken into account in calculating
27 service credit under this Section. If a participant
28 transfers from one employer to another, the unused sick leave
29 credited by the previous employer shall be considered in
30 determining service to be credited under this Section, even
31 if the participant terminated service prior to the effective
32 date of P.A. 86-272 (August 23, 1989); if necessary, the
33 retirement annuity shall be recalculated to reflect such sick
-117- LRB9000609EGfgam30
1 leave credit. Each employer shall certify to the board the
2 number of days of unused sick leave accrued to the
3 participant's credit on the date that the participant's
4 status as an employee terminated. This period of unused sick
5 leave shall not be considered in determining the date the
6 retirement annuity begins.
7 (Source: P.A. 86-272; 87-794.)
8 (40 ILCS 5/15-113.7) (from Ch. 108 1/2, par. 15-113.7)
9 Sec. 15-113.7. Service for other public employment.
10 "Service for other public employment": Includes those
11 periods not exceeding the lesser of 10 years or 2/3 of the
12 service granted under other Sections of this Article dealing
13 with service credit, during which a person was employed full
14 time by the United States government, or by the government of
15 a state, or by a political subdivision of a state, or by an
16 agency or instrumentality of any of the foregoing, if the
17 person (1) cannot qualify for a retirement pension or other
18 benefit based upon employer contributions from another
19 retirement system, exclusive of federal social security,
20 based in whole or in part upon this employment, and (2) pays
21 the lesser of (A) an amount equal to 8% of his or her annual
22 basic compensation on the date of becoming a participating
23 employee subsequent to this service multiplied by the number
24 of years of such service, together with compound interest
25 from the date participation begins to the date payment is
26 received by the board at the rate of 6% per annum through
27 August 31, 1982, and at the effective rates after that date,
28 and (B) 50% of the actuarial value of the increase in the
29 retirement annuity provided by this service, and (3)
30 contributes for at least 5 years subsequent to this
31 employment to one or more of the following systems: the
32 State Universities Retirement System, the Teachers'
33 Retirement System of the State of Illinois, and the Public
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1 School Teachers' Pension and Retirement Fund of Chicago. If
2 a function of a governmental unit as defined by Section
3 20-107 is transferred by law, in whole or in part to an
4 employer, and an employee transfers employment from this
5 governmental unit to such employer within 6 months of the
6 transfer of the function, the payment for service authorized
7 under this Section shall not exceed the amount which would
8 have been payable for this service to the retirement system
9 covering the governmental unit from which the function was
10 transferred.
11 The service granted under this Section shall not be
12 considered in determining whether the person has the minimum
13 of 8 years of service required to qualify for a retirement
14 annuity at age 55 or the 5 years of service required to
15 qualify for a retirement annuity at age 62, as provided in
16 Section 15-135. The maximum allowable service of 10 years
17 for this governmental employment shall be reduced by the
18 service credit which is validated under paragraph (3) of
19 Section 16-127 and paragraph one of Section 17-133.
20 Except as hereinafter provided, this Section shall not
21 apply to persons who become participants in the system after
22 September 1, 1974. Except as hereinafter provided, credit
23 for military service under this Section shall be allowed only
24 to persons who have applied for such credit before September
25 1, 1974. The foregoing September 1, 1974, limitations do not
26 apply to any person who became a participant in the system on
27 or before January 15, 1977, and prior thereto, had a minimum
28 of 20 years of service credit granted in the General Assembly
29 Retirement System.
30 (Source: P.A. 87-1265.)
31 (40 ILCS 5/15-125) (from Ch. 108 1/2, par. 15-125)
32 Sec. 15-125. "Prescribed Rate of Interest; Effective
33 Rate of Interest":
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1 (1) "Prescribed rate of interest": The rate of interest
2 to be used in actuarial valuations and in development of
3 actuarial tables as determined by the board on the basis of
4 the probable average effective rate of interest on a long
5 term basis.
6 (2) "Effective rate of interest": The interest rate for
7 all or any part of a fiscal year that is determined by the
8 board based on factors including the system's past and
9 expected investment experience; historical and expected
10 fluctuations in the market value of investments; the
11 desirability of minimizing volatility in the effective rate
12 of interest from year to year; the provision of reserves for
13 anticipated losses upon sales, redemptions, or other
14 disposition of investments and for variations in interest
15 experience. This amendatory Act of 1997 is a clarification
16 of existing law. The interest rate for any fiscal year
17 determined by the board from the investment experience of the
18 preceding fiscal years and the estimated investment
19 experience of the current fiscal year. In determining the
20 effective rate of interest to be credited to member
21 contribution accounts and other reserves, the board may
22 provide for reserves for anticipated losses upon sales,
23 redemptions or other disposition of investments and for
24 reserves for variations in interest experience.
25 (Source: P.A. 79-1146.)
26 (40 ILCS 5/15-134.2) (from Ch. 108 1/2, par. 15-134.2)
27 Sec. 15-134.2. Transfer of creditable service to the
28 General Assembly Retirement System.
29 (a) An active member of the General Assembly Retirement
30 System (and until June 1, 1998, a former member of that
31 System who has not yet retired) may apply to transfer his or
32 her credits and creditable service accumulated under this
33 system to the General Assembly Retirement System. The
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1 credits and creditable service shall be transferred
2 forthwith. Payment by this system to the General Assembly
3 Retirement System shall be made at the same time and shall
4 consist of:
5 (1) the amounts credited to the applicant, through
6 employee contributions, including interest, as of the
7 date of transfer; and
8 (2) employer contributions equal in amount to the
9 accumulated employee contributions as determined in
10 subparagraph (1) above.
11 Participation in this system shall terminate on the date of
12 transfer.
13 (b) An active member of the General Assembly Retirement
14 System (and until June 1, 1998, a former member of that
15 System who has not yet retired) may reinstate service credits
16 terminated upon receipt of a refund by payment to the system
17 of the amount of the refund together with compound interest
18 at the rate required for repayment of a refund under Section
19 15-154 from the date the refund was received to the date of
20 payment.
21 (c) The application of this Section is not limited to
22 persons who are in service on or after the effective date of
23 this amendatory Act of 1997.
24 (Source: P.A. 83-1440.)
25 (40 ILCS 5/15-136.2) (from Ch. 108 1/2, par. 15-136.2)
26 Sec. 15-136.2. Early retirement without discount. A
27 participant whose retirement annuity begins after June 1,
28 1981 and on or before September 1, 2002 1997 and within six
29 months of the last day of employment for which retirement
30 contributions were required, may elect at the time of
31 application to make a one time employee contribution to the
32 System and thereby avoid the early retirement reduction in
33 retirement annuity specified under subsection (b) of Section
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1 15-136. The exercise of the election shall obligate the last
2 employer to also make a one time non-refundable contribution
3 to the System.
4 The one time employee and employer contributions shall be
5 a percentage of the retiring participant's highest full time
6 annual salary rate during the academic years which were
7 considered in determining his or her final rate of earnings,
8 or if not full time then the full time equivalent. The
9 employee contribution rate shall be 7% multiplied by the
10 lesser of the following 2 sums: (1) the number of years that
11 the participant is less than age 60; or (2) the number of
12 years that the participant's creditable service is less than
13 35 years. The employer contribution shall be at the rate of
14 20% for each year the participant is less than age 60. The
15 employer shall pay the employer contribution from the same
16 source of funds which is used in paying earnings to
17 employees.
18 Upon receipt of the application and election, the System
19 shall determine the one time employee and employer
20 contributions. The provisions of this Section shall not be
21 applicable until all the above outlined contributions have
22 been received by the System; however, the date such
23 contributions are received shall not be considered in
24 determining the effective date of retirement.
25 For persons who apply to the Board after the effective
26 date of this amendatory Act of 1993 and before July 1, 1993,
27 requesting a retirement annuity to begin no earlier than July
28 1, 1993 and no later than June 30, 1994, the employer shall
29 pay both the employee and employer contributions required
30 under this Section.
31 The number of employees retiring under this Section in
32 any fiscal year may be limited at the option of the employer
33 to no less than 15% of those eligible. The right to elect
34 early retirement without discount shall be allocated among
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1 those applying on the basis of seniority in the service of
2 the last employer.
3 (Source: P.A. 87-794; 87-1265.)
4 (40 ILCS 5/15-143) (from Ch. 108 1/2, par. 15-143)
5 Sec. 15-143. Death benefits - General provisions. All
6 death benefits shall be paid as a single cash sum or
7 otherwise as the beneficiary and the board mutually agree,
8 except where an annuity is payable under Section 15-144. A
9 death benefit shall be paid as soon as practicable after
10 receipt by the board of (1) a written application by the
11 beneficiary and (2) such evidence of death and identification
12 as the board shall require.
13 (Source: P.A. 83-1440.)
14 (40 ILCS 5/15-153.2) (from Ch. 108 1/2, par. 15-153.2)
15 Sec. 15-153.2. Disability retirement annuity. A
16 participant whose disability benefits are discontinued under
17 the provisions of clause (6) (5) of Section 15-152, is
18 entitled to a disability retirement annuity of 35% of the
19 basic compensation which was payable to the participant at
20 the time that disability began, provided at least 2 licensed
21 and practicing physicians appointed by the board certify that
22 the participant has a medically determinable physical or
23 mental impairment which would prevent him or her from
24 engaging in any substantial gainful activity, and which can
25 be expected to result in death or which has lasted or can be
26 expected to last for a continuous period of not less than 12
27 months. The terms "medically determinable physical or mental
28 impairment" and "substantial gainful activity" shall have the
29 meanings ascribed to them in the "Social Security Act", as
30 now or hereafter amended, and the regulations issued
31 thereunder.
32 The disability retirement annuity payment period shall
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1 begin immediately following the expiration of the disability
2 benefit payments under clause (6) (5) of Section 15-152 and
3 shall be discontinued when (1) the physical or mental
4 impairment no longer prevents the participant from engaging
5 in any substantial gainful activity, (2) the participant dies
6 or (3) the participant elects to receive a retirement annuity
7 under Sections 15-135 and 15-136. If a person's disability
8 retirement annuity is discontinued under clause (1), all
9 rights and credits accrued in the system on the date that the
10 disability retirement annuity began shall be restored, and
11 the disability retirement annuity paid shall be considered as
12 disability payments under clause (6) (5) of Section 15-152.
13 (Source: P.A. 83-1440.)
14 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
15 Sec. 15-157. Employee Contributions.
16 (a) Each participating employee shall make contributions
17 towards the retirement annuity of each payment of earnings
18 applicable to employment under this system on and after the
19 date of becoming a participant as follows: Prior to
20 September 1, 1949, 3 1/2% of earnings; from September 1, 1949
21 to August 31, 1955, 5%; from September 1, 1955 to August 31,
22 1969, 6%; from September 1, 1969, 6 1/2%. These
23 contributions are to be considered as normal contributions
24 for purposes of this Article.
25 Each participant who is a police officer or firefighter
26 shall make normal contributions of 8% of each payment of
27 earnings applicable to employment as a police officer or
28 firefighter under this system on or after September 1, 1981,
29 unless he or she files with the board within 60 days after
30 the effective date of this amendatory Act of 1991 or 60 days
31 after the board receives notice that he or she is employed as
32 a police officer or firefighter, whichever is later, a
33 written notice waiving the retirement formula provided by
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1 Rule 4 of Section 15-136. This waiver shall be irrevocable.
2 If a participant had met the conditions set forth in Section
3 15-132.1 prior to the effective date of this amendatory Act
4 of 1991 but failed to make the additional normal
5 contributions required by this paragraph, he or she may elect
6 to pay the additional contributions plus compound interest at
7 the effective rate. If such payment is received by the
8 board, the service shall be considered as police officer
9 service in calculating the retirement annuity under Rule 4 of
10 Section 15-136.
11 (b) Starting September 1, 1969, each participating
12 employee shall make additional contributions of 1/2 of 1% of
13 earnings to finance a portion of the cost of the annual
14 increases in retirement annuity provided under Section
15 15-136.
16 (c) Each participating employee shall make survivors
17 insurance contributions of 1% of earnings applicable under
18 this system on and after August 1, 1959. Contributions in
19 excess of $80 during any fiscal year beginning before August
20 31, 1969 and in excess of $120 during any fiscal year
21 thereafter until September 1, 1971 shall be considered as
22 additional contributions for purposes of this Article.
23 (d) If the board by board rule so permits and subject to
24 such conditions and limitations as may be specified in its
25 rules, a participant may make other additional contributions
26 of such percentage of earnings or amounts as the participant
27 shall elect in a written notice thereof received by the
28 board.
29 (e) That fraction of a participant's total accumulated
30 normal contributions, the numerator of which is equal to the
31 number of years of service in excess of that which is
32 required to qualify for the maximum retirement annuity, and
33 the denominator of which is equal to the total service of the
34 participant, shall be considered as accumulated additional
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1 contributions. The determination of the applicable maximum
2 annuity and the adjustment in contributions required by this
3 provision shall be made as of the date of the participant's
4 retirement.
5 (f) Notwithstanding the foregoing, a participating
6 employee shall not be required to make contributions under
7 this Section after the date upon which continuance of such
8 contributions would otherwise cause his or her retirement
9 annuity to exceed the maximum retirement annuity as specified
10 in clause (1) of subsection (c) of Section 15-136.
11 (Source: P.A. 86-272; 86-1488.)
12 (40 ILCS 5/15-167.2) (from Ch. 108 1/2, par. 15-167.2)
13 Sec. 15-167.2. To issue bonds. To borrow money and, in
14 evidence of its obligation to repay the borrowing, to issue
15 bonds for the purpose of financing the cost of any project.
16 The bonds shall be authorized pursuant to a resolution to be
17 adopted by the board setting forth all details in connection
18 with the bonds.
19 The principal amount of the outstanding bonds of the
20 board shall not at any time exceed $20,000,000 $10,000,000.
21 The bonds may be issued in one or more series, bear such
22 date or dates, become due at such time or times within 40
23 years, bear interest payable at such intervals and at such
24 rate or rates, which rates may be fixed or variable, be in
25 such denominations, be in such form, either coupon,
26 registered or book-entry, carry such conversion, registration
27 and exchange privileges, be subject to defeasance upon such
28 terms, have such rank or priority, be executed in such
29 manner, be payable in such medium of payment at such place or
30 places within or without the State of Illinois, make
31 provision for a corporate trustee within or without the State
32 of Illinois with respect to such bonds, prescribe the rights,
33 powers and duties thereof to be exercised for the benefit of
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1 the board, the system and the protection of the bondholders,
2 provide for the holding in trust, investment and use of
3 moneys, funds and accounts held in connection therewith, be
4 subject to such terms of redemption with or without premium,
5 and be sold in such manner at private or public sale and at
6 such price, all as the board shall determine. Whenever bonds
7 are sold at a price less than par, they shall be sold at such
8 price and bear interest at such rate or rates that either the
9 true interest cost (yield) or the net interest rate, as may
10 be selected by the board, received upon the sale of such
11 bonds does not exceed the maximum interest rate permitted by
12 the Bond Authorization Act, as amended at the time of the
13 making of the contract.
14 Any bonds may be refunded or advance refunded upon such
15 terms as the board may determine for such term of years, not
16 exceeding 40 years, and in such principal amount, as may be
17 deemed necessary by the board. Any redemption premium
18 payable upon the redemption of bonds may be payable from the
19 proceeds of refunding bonds issued for the purpose of
20 refunding such bonds, from any lawfully available source or
21 from both refunding bond proceeds and such other sources.
22 The bonds or refunding bonds shall be obligations of the
23 board payable from the income, interest and dividends derived
24 from investments of the board, all as may be designated in
25 the resolution of the board authorizing the issuance of the
26 bonds. The bonds shall be secured as provided in the
27 authorizing resolution, which may, notwithstanding any other
28 provision of this Code, include a specific pledge or
29 assignment of and lien on or security interest in the income,
30 interest and dividends derived from investments of the board
31 and a specific pledge or assignment of and lien on or
32 security interest in any funds, reserves or accounts
33 established or provided for by the resolution of the board
34 authorizing the issuance of the bonds. The bonds or refunding
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1 bonds shall not be payable from any employer or employee
2 contributions derived from State appropriations nor
3 constitute obligations or indebtedness of the State of
4 Illinois or of any municipal corporation or other body
5 politic and corporate in the State.
6 The holder or holders of any bonds issued by the board
7 may bring suits at law or proceedings in equity to compel the
8 performance and observance by the board or any of its agents
9 or employees of any contract or covenant made with the
10 holders of the bonds, to compel the board or any of its
11 agents or employees to perform any duties required to be
12 performed for the benefit of the holders of the bonds by the
13 provisions of the resolution authorizing their issuance, and
14 to enjoin the board or any of its agents or employees from
15 taking any action in conflict with any such contract or
16 covenant.
17 Notwithstanding the provisions of Section 15-188 of this
18 Code, if the board fails to pay the principal of, premium, if
19 any, or interest on any of the bonds as they become due, a
20 civil action to compel payment may be instituted in the
21 appropriate circuit court by the holder or holders of the
22 bonds upon which such default exists or by a trustee acting
23 on behalf of the holders.
24 No bonds may be issued under this Section until a copy of
25 the resolution of the board authorizing such bonds, certified
26 by the secretary of the board, has been filed with the
27 Governor of the State of Illinois.
28 "Bonds" means any instrument evidencing the obligation to
29 pay money, including without limitation bonds, notes,
30 installment or financing contracts, leases, certificates,
31 warrants, and any other evidences of indebtedness.
32 "Project" means the acquisition, construction, equipping,
33 improving, expanding and furnishing of any office building
34 for the use of the system, including any real estate or
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1 interest in real estate necessary or useful in connection
2 therewith.
3 "Cost of any project" includes all capital costs of the
4 project, an amount for expenses of issuing any bonds to
5 finance such project, including underwriter's discount and
6 costs of bond insurance or other credit enhancement, an
7 amount necessary to provide for a reserve fund for the
8 payment of the principal of and interest on such bonds and an
9 amount to pay interest on such bonds for a period not to
10 exceed the greater of 2 years or a period ending 6 months
11 after the estimated date of completion of the project.
12 (Source: P.A. 86-1034.)
13 (40 ILCS 5/15-168.1 new)
14 Sec. 15-168.1. Testimony and the production of records.
15 The secretary of the Board shall have the power to issue
16 subpoenas to compel the attendance of witnesses and the
17 production of documents and records, including law
18 enforcement records maintained by law enforcement agencies,
19 in conjunction with a disability claim, administrative review
20 proceedings, or felony forfeiture investigation. The fees of
21 witnesses for attendance and travel shall be the same as the
22 fees of witnesses before the circuit courts of this State and
23 shall be paid by the party seeking the subpoena. The Board
24 may apply to any circuit court in the State for an order
25 requiring compliance with a subpoena issued under this
26 Section. Subpoenas issued under this Section shall be
27 subject to applicable provisions of the Code of Civil
28 Procedure.
29 (40 ILCS 5/15-185) (from Ch. 108 1/2, par. 15-185)
30 Sec. 15-185. Annuities, etc. Exempt. The accumulated
31 employee and employer contributions shall be held in trust
32 for each participant and annuitant, and this trust shall be
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1 treated as a spendthrift trust. Except as provided in this
2 Article, all cash, securities and other property of this
3 system, all annuities and other benefits payable under this
4 Article and all accumulated credits of participants and
5 annuitants in this system and the right of any person to
6 receive an annuity or other benefit under this Article, or a
7 refund of contributions, shall not be subject to judgment,
8 execution, garnishment, attachment, or other seizure by
9 process, in bankruptcy or otherwise, nor to sale, pledge,
10 mortgage or other alienation, and shall not be assignable.
11 The board, however, may deduct from the benefits, refunds and
12 credits payable to the participant, annuitant or beneficiary,
13 amounts owed by the participant or annuitant to the system.
14 No attempted sale, transfer or assignment of any benefit,
15 refund or credit shall prevent the right of the board to make
16 the deduction and offset authorized in this Section. Any
17 participant or annuitant may authorize the board to deduct
18 from disability benefits or annuities, premiums due under any
19 group hospital-surgical insurance program which is sponsored
20 or approved by any employer; however, the deductions from
21 disability benefits may not begin prior to 6 months after the
22 disability occurs.
23 A person receiving an annuity or benefit may also
24 authorize withholding from such annuity or benefit for the
25 purposes enumerated in the State Salary and Annuity
26 Withholding Act.
27 This amendatory Act of 1989 is a clarification of
28 existing law and shall be applicable to every participant and
29 annuitant without regard to whether status as an employee
30 terminates before the effective date of this amendatory Act
31 of 1989.
32 (Source: P.A. 86-273; 86-1488.)
33 (40 ILCS 5/15-190) (from Ch. 108 1/2, par. 15-190)
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1 Sec. 15-190. Persons under legal disability. If a person
2 is under legal disability when any right or privilege accrues
3 to him or her under this Article, a guardian may be appointed
4 pursuant to law, and may, on behalf of such person, claim and
5 exercise any such right or privilege with the same force and
6 effect as if the person had not been under a legal disability
7 and had claimed or exercised such right or privilege.
8 If a person's application for benefits or a physician's
9 certificate on file with the board shows that the person is
10 under a legal disability, and no guardian has been appointed
11 for his or her estate, the benefits payable under this
12 Article may be paid (1) directly to the person under legal
13 disability, or (2) to either parent of the person under legal
14 disability or any adult person with whom the person under
15 legal disability may at the time be living, provided only
16 that such parent or adult person to whom any amount is to be
17 paid shall have advised the board in writing that such amount
18 will be held or used for the benefit of the person under
19 legal disability, or (3) to the trustee of any trust created
20 for the sole benefit of the person under legal disability
21 while that person is living, provided only that the trustee
22 of such trust to whom any amount is to be paid shall have
23 advised the board in writing that such amount will be held or
24 used for the benefit of the person under legal disability.
25 The system shall not be required to determine the validity of
26 the trust or any of the terms thereof. The representation of
27 the trustee that the trust meets the requirements of this
28 Section shall be conclusive as to the system. The written
29 receipt of the person under legal disability or the other
30 person who receives such payment shall be an absolute
31 discharge of the system's liability in respect of the amount
32 so paid.
33 (Source: P.A. 86-1488.)
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1 (40 ILCS 5/15-191) (from Ch. 108 1/2, par. 15-191)
2 Sec. 15-191. Payment of benefits to minors. If any
3 benefits under this Article become payable to a minor, the
4 board may make payment (1) directly to the minor, (2) to any
5 person who has legally qualified and is acting as guardian of
6 the minor's person or property in any jurisdiction, or (3) to
7 either parent of the minor or to any adult person with whom
8 the minor may at the time be living, provided only that the
9 parent or other person to whom any amount is to be paid shall
10 have advised the board in writing that such amount will be
11 held or used for the benefit of the minor, or (4) to the
12 trustee of any trust created for the sole benefit of the
13 minor while that minor is living, provided only that the
14 trustee of such trust to whom any amount is to be paid shall
15 have advised the board in writing that such amount will be
16 held or used for the benefit of the minor. The system shall
17 not be required to determine the validity of the trust or any
18 of the terms thereof. The representation of the trustee that
19 the trust meets the requirements of this Section shall be
20 conclusive as to the system. The written receipt of the
21 minor, parent, trustee, or other person who receives such
22 payment shall be an absolute discharge of the system's
23 liability in respect of the amount so paid.
24 (Source: P.A. 83-1440.)
25 (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
26 Sec. 16-127. Computation of creditable service.
27 (a) Each member shall receive regular credit for all
28 service as a teacher from the date membership begins, for
29 which satisfactory evidence is supplied and all contributions
30 have been paid.
31 (b) The following periods of service shall earn optional
32 credit and each member shall receive credit for all such
33 service for which satisfactory evidence is supplied and all
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1 contributions have been paid as of the date specified:
2 (1) Prior service as a teacher.
3 (2) Service in a capacity essentially similar or
4 equivalent to that of a teacher, in the public common
5 schools in school districts in this State not included
6 within the provisions of this System, or of any other
7 State, territory, dependency or possession of the United
8 States, or in schools operated by or under the auspices
9 of the United States, or under the auspices of any agency
10 or department of any other State, and service during any
11 period of professional speech correction or special
12 education experience for a public agency within this
13 State or any other State, territory, dependency or
14 possession of the United States, and service prior to
15 February 1, 1951 as a recreation worker for the Illinois
16 Department of Public Safety, for a period not exceeding
17 the lesser of 2/5 of the total creditable service of the
18 member or 10 years. The maximum service of 10 years
19 which is allowable under this paragraph shall be reduced
20 by the service credit which is validated by other
21 retirement systems under paragraph (i) of Section 15-113
22 and paragraph 1 of Section 17-133. Credit granted under
23 this paragraph may not be used in determination of a
24 retirement annuity or disability benefits unless the
25 member has at least 5 years of creditable service earned
26 subsequent to this employment with one or more of the
27 following systems: Teachers' Retirement System of the
28 State of Illinois, State Universities Retirement System,
29 and the Public School Teachers' Pension and Retirement
30 Fund of Chicago. Whenever such service credit exceeds
31 the maximum allowed for all purposes of this Article, the
32 first service rendered in point of time shall be
33 considered. The changes to this subdivision (b)(2) made
34 by Public Act 86-272 shall apply not only to persons who
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1 on or after its effective date (August 23, 1989) are in
2 service as a teacher under the System, but also to
3 persons whose status as such a teacher terminated prior
4 to such effective date, whether or not such person is an
5 annuitant on that date.
6 (3) Any periods immediately following teaching
7 service, under this System or under Article 17, (or
8 immediately following service prior to February 1, 1951
9 as a recreation worker for the Illinois Department of
10 Public Safety) spent in active service with the military
11 forces of the United States; periods spent in educational
12 programs that prepare for return to teaching sponsored by
13 the federal government following such active military
14 service; if a teacher returns to teaching service within
15 one calendar year after discharge or after the completion
16 of the educational program, a further period, not
17 exceeding one calendar year, between time spent in
18 military service or in such educational programs and the
19 return to employment as a teacher under this System; and
20 a period of up to 2 years of active military service not
21 immediately following employment as a teacher.
22 The changes to this Section and Section 16-128
23 relating to military service made by P.A. 87-794 shall
24 apply not only to persons who on or after its effective
25 date are in service as a teacher under the System, but
26 also to persons whose status as a teacher terminated
27 prior to that date, whether or not the person is an
28 annuitant on that date. In the case of an annuitant who
29 applies for credit allowable under this Section for a
30 period of military service that did not immediately
31 follow employment, and who has made the required
32 contributions for such credit, the annuity shall be
33 recalculated to include the additional service credit,
34 with the increase taking effect on the date the System
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1 received written notification of the annuitant's intent
2 to purchase the credit, if payment of all the required
3 contributions is made within 60 days of such notice, or
4 else on the first annuity payment date following the date
5 of payment of the required contributions. In calculating
6 the automatic annual increase for an annuity that has
7 been recalculated under this Section, the increase
8 attributable to the additional service allowable under
9 P.A. 87-794 shall be included in the calculation of
10 automatic annual increases accruing after the effective
11 date of the recalculation.
12 Credit for military service shall be determined as
13 follows: if entry occurs during the months of July,
14 August, or September and the member was a teacher at the
15 end of the immediately preceding school term, credit
16 shall be granted from July 1 of the year in which he or
17 she entered service; if entry occurs during the school
18 term and the teacher was in teaching service at the
19 beginning of the school term, credit shall be granted
20 from July 1 of such year. In all other cases where credit
21 for military service is allowed, credit shall be granted
22 from the date of entry into the service.
23 The total period of military service for which
24 credit is granted shall not exceed 5 years for any member
25 unless the service: (A) is validated before July 1,
26 1964, and (B) does not extend beyond July 1, 1963.
27 Credit for military service shall be granted under this
28 Section only if not more than 5 years of the military
29 service for which credit is granted under this Section is
30 used by the member to qualify for a military retirement
31 allotment from any branch of the armed forces of the
32 United States. The changes to this subdivision (b)(3)
33 made by Public Act 86-272 shall apply not only to persons
34 who on or after its effective date (August 23, 1989) are
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1 in service as a teacher under the System, but also to
2 persons whose status as such a teacher terminated prior
3 to such effective date, whether or not such person is an
4 annuitant on that date.
5 (4) Any periods served as a member of the General
6 Assembly.
7 (5)(i) Any periods for which a teacher, as defined
8 in Section 16-106, is granted a leave of absence,
9 provided he or she returns to teaching service creditable
10 under this System or the State Universities Retirement
11 System following the leave; (ii) periods during which a
12 teacher is involuntarily laid off from teaching, provided
13 he or she returns to teaching following the lay-off;
14 (iii) periods prior to July 1, 1983 during which a
15 teacher ceased covered employment due to pregnancy,
16 provided that the teacher returned to teaching service
17 creditable under this System or the State Universities
18 Retirement System following the pregnancy and submits
19 evidence satisfactory to the Board documenting that the
20 employment ceased due to pregnancy. However, total
21 credit under this paragraph (5) may not exceed 3 years.
22 Any qualified member or annuitant may apply for
23 credit under item (iii) of this paragraph (5) without
24 regard to whether service was terminated before the
25 effective date of this amendatory Act of 1995. In the
26 case of an annuitant who establishes credit under item
27 (iii), the annuity shall be recalculated to include the
28 additional service credit. The increase in annuity shall
29 take effect on the date the System receives written
30 notification of the annuitant's intent to purchase the
31 credit, if the required evidence is submitted and the
32 required contribution paid within 60 days of that
33 notification, otherwise on the first annuity payment date
34 following the System's receipt of the required evidence
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1 and contribution. The increase in an annuity
2 recalculated under this provision shall be included in
3 the calculation of automatic annual increases in the
4 annuity accruing after the effective date of the
5 recalculation.
6 Optional credit may be purchased under this
7 subsection (b)(5) for periods during which a teacher has
8 been granted a leave of absence pursuant to Section 24-13
9 of the School Code. A teacher whose service under this
10 Article terminated prior to the effective date of P.A.
11 86-1488 shall be eligible to purchase such optional
12 credit. If a teacher who purchases this optional credit
13 is already receiving a retirement annuity under this
14 Article, the annuity shall be recalculated as if the
15 annuitant had applied for the leave of absence credit at
16 the time of retirement. The difference between the
17 entitled annuity and the actual annuity shall be credited
18 to the purchase of the optional credit. The remainder of
19 the purchase cost of the optional credit shall be paid on
20 or before April 1, 1992.
21 The change in this paragraph made by Public Act
22 86-273 shall be applicable to teachers who retire after
23 June 1, 1989, as well as to teachers who are in service
24 on that date.
25 (6) Any days of unused and uncompensated
26 accumulated sick leave earned by a teacher. The service
27 credit granted under this paragraph shall be the ratio of
28 the number of unused and uncompensated accumulated sick
29 leave days to 170 days, subject to a maximum of one year
30 of service credit. Prior to the member's retirement,
31 each former employer shall certify to the System the
32 number of unused and uncompensated accumulated sick leave
33 days credited to the member at the time of termination of
34 service. The period of unused sick leave shall not be
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1 considered in determining the effective date of
2 retirement. A member is not required to make
3 contributions in order to obtain service credit for
4 unused sick leave.
5 Credit for sick leave shall, at retirement, be
6 granted by the System for any retiring regional or
7 assistant regional superintendent of schools at the rate
8 of 6 days per year of creditable service or portion
9 thereof established while serving as such superintendent
10 or assistant superintendent.
11 (7) Periods prior to February 1, 1987 served as an
12 employee of the Illinois Mathematics and Science Academy
13 for which credit has not been terminated under Section
14 15-113.9 of this Code.
15 (8) Service as a substitute teacher for work
16 performed prior to July 1, 1990.
17 (9) Service as a part-time teacher for work
18 performed prior to July 1, 1990.
19 (10) Up to 5 2 years of employment with Southern
20 Illinois University - Carbondale between January 1, 1959
21 and December 31, 1963 from September 1, 1959 to August
22 31, 1961, or with Governors State University from
23 September 1, 1972 to August 31, 1974, for which the
24 teacher has no credit under Article 15. To receive
25 credit under this item (10), a teacher must apply in
26 writing to the Board and pay the required contributions
27 before May 1, 1998 1993 and have at least 12 years of
28 service credit under this Article.
29 (c) The service credits specified in this Section shall
30 be granted only if: (1) such service credits are not used
31 for credit in any other statutory tax-supported public
32 employee retirement system other than the federal Social
33 Security program; and (2) the member makes the required
34 contributions as specified in Section 16-128. The service
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1 credit shall be effective as of the date the required
2 contributions are completed.
3 Any service credits granted under this Section shall
4 terminate upon cessation of membership for any cause.
5 Credit may not be granted under this Section covering any
6 period for which an age retirement or disability retirement
7 allowance has been paid.
8 (Source: P.A. 88-45; 89-430, eff. 12-15-95.)
9 (40 ILCS 5/16-131.1) (from Ch. 108 1/2, par. 16-131.1)
10 Sec. 16-131.1. Transfer of creditable service to the
11 General Assembly Retirement System.
12 (a) An active member of the General Assembly Retirement
13 System (and until June 1, 1998, a former member of that
14 System who has not yet retired), and until May 1, 1993, any
15 person having service credit therein, may apply to transfer
16 his or her credits and creditable service accumulated under
17 this system to the General Assembly Retirement System. The
18 specified creditable service shall be transferred upon
19 application. Payment by this system to the General Assembly
20 Retirement System shall be made at the same time and shall
21 consist of:
22 (1) the amounts credited to the member through
23 member contributions for the service to be transferred,
24 including interest if applicable, as of the date of
25 transfer, but excluding any additional or optional
26 contributions, which shall be refunded to the member; and
27 (2) employer contributions equal in amount to the
28 accumulated member contributions as determined in
29 subparagraph (1).
30 Participation in this system with respect to the transferred
31 credits shall terminate on the date of transfer.
32 (b) An active member of the General Assembly Retirement
33 System (and until June 1, 1998, a former member of that
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1 System who has not yet retired) who has creditable service
2 under the system may establish additional creditable service
3 for periods during which he or she was an elected official
4 and could have elected to participate but did not so elect.
5 Creditable service may be established by payment to the
6 system of an amount equal to the contributions that would
7 have been made if the person had elected to participate, plus
8 interest at the rate specified under subsection (a) of
9 Section 16-128 to the date of payment.
10 (c) An active member of the General Assembly, and until
11 May 1, 1993, any person having service credit in the General
12 Assembly Retirement System (and until June 1, 1998, a former
13 member of that System who has not yet retired), may reinstate
14 creditable service terminated upon receipt of a refund, by
15 payment to the system of the amount of the refund together
16 with interest thereon at the rate specified under subsection
17 (a) of Section 16-128 to the date of payment.
18 (d) The application of this Section is not limited to
19 persons who are in service on or after the effective date of
20 this amendatory Act of 1997.
21 (Source: P.A. 87-1265.)
22 (40 ILCS 5/16-140) (from Ch. 108 1/2, par. 16-140)
23 Sec. 16-140. Survivors' benefits - definitions.
24 (a) For the purpose of Sections 16-138 through 16-143.2,
25 the following terms shall have the following meanings, unless
26 the context otherwise requires:
27 (1) "Average salary": the average salary for the highest
28 4 consecutive years within the last 10 years of creditable
29 service immediately preceding date of death or retirement,
30 whichever is applicable, or the average salary for the total
31 creditable service if service is less than 4 years.
32 (2) "Member": any teacher included in the membership of
33 the system. However, a teacher who becomes an annuitant of
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1 the system or a teacher whose services terminate after 20
2 years of service from any cause other than retirement is
3 considered a member, subject to the conditions and
4 limitations stated in this Article.
5 (3) "Dependent beneficiary": (A) a surviving spouse of a
6 member or annuitant who was married to the member or
7 annuitant for the 12 month period immediately preceding and
8 on the date of death of such member or annuitant, except
9 where a child is born of such marriage, in which case the
10 qualifying period shall not be applicable; (A-1) a surviving
11 spouse of a member or annuitant who (i) was married to the
12 member or annuitant on the date of the member or annuitant's
13 death, (ii) was married to the member or annuitant for a
14 period of at least 12 months (but not necessarily the 12
15 months immediately preceding the member or annuitant's
16 death), (iii) first applied for a survivor's benefit before
17 April January 1, 1997 1994, and (iv) has not received a
18 benefit under subsection (a) of Section 16-141 or paragraph
19 (1) of Section 16-142; (B) an eligible child of a member or
20 annuitant; and (C) a dependent parent.
21 Unless otherwise designated by the member, eligibility
22 for benefits shall be in the order named, except that a
23 dependent parent shall be eligible only if there is no other
24 dependent beneficiary. Any benefit to be received by or paid
25 to a dependent beneficiary to be determined under this
26 paragraph as provided in Sections 16-141 and 16-142 may be
27 received by or paid to a trust established for such dependent
28 beneficiary if such dependent beneficiary is living at the
29 time such benefit would be received by or paid to such trust.
30 (4) "Eligible child": an unmarried natural or adopted
31 child of the member or annuitant under age 18. An unmarried
32 natural or adopted child, regardless of age, who is dependent
33 by reason of a physical or mental disability, except any such
34 child receiving benefits under Article III of the Illinois
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1 Public Aid Code, is eligible for so long as such physical or
2 mental disability continues. An adopted child, however, is
3 eligible only if the proceedings for adoption were finalized
4 while the child was a minor.
5 For purposes of this subsection, "disability" means an
6 inability to engage in any substantial gainful activity by
7 reason of any medically determinable physical or mental
8 impairment which can be expected to result in death or which
9 has lasted or can be expected to last for a continuous period
10 of not less than 12 months.
11 (5) "Dependent parent": a parent who was receiving at
12 least 1/2 of his or her support from a member or annuitant
13 for the 12-month period immediately preceding and on the date
14 of such member's or annuitant's death, provided however, that
15 such dependent status terminates upon a member's acceptance
16 of a refund for survivor benefit contributions as provided
17 under Section 16-142.
18 (6) "Non-dependent beneficiary": any person,
19 organization or other entity designated by the member who
20 does not qualify as a dependent beneficiary.
21 (7) "In service": the condition of a member being in
22 receipt of salary as a teacher at any time within 12 months
23 immediately before his or her death, being on leave of
24 absence for which the member, upon return to teaching, would
25 be eligible to purchase service credit under subsection
26 (b)(5) of Section 16-127, or being in receipt of a disability
27 or occupational disability benefit. This term does not
28 include any annuitant or member who previously accepted a
29 refund of survivor benefit contributions under paragraph (1)
30 of Section 16-142 unless the conditions specified in
31 subsection (b) of Section 16-143.2 are met.
32 (b) The change to this Section made by this amendatory
33 Act of 1997 applies without regard to whether the deceased
34 member or annuitant was in service on or after the effective
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1 date of this amendatory Act.
2 (Source: P.A. 89-430, eff. 12-15-95.)
3 (40 ILCS 5/17-114.1) (from Ch. 108 1/2, par. 17-114.1)
4 Sec. 17-114.1. Transfer to General Assembly Retirement
5 System.
6 (a) Any active member of the General Assembly Retirement
7 System (and until June 1, 1998, a former member of that
8 System who has not yet retired) may apply for transfer of his
9 or her credits and creditable service accumulated under this
10 Fund to the General Assembly System. Such credits and
11 creditable service shall be transferred forthwith. Payment
12 by this Fund to the General Assembly Retirement System shall
13 be made at the same time and shall consist of:
14 (1) the amounts accumulated to the credit of the
15 applicant, including interest, on the books of the Fund
16 on the date of transfer, but excluding any additional or
17 optional credits, which credits shall be refunded to the
18 applicant; and
19 (2) employer credits computed and credited under
20 this Article including interest, on the books of the Fund
21 on the date the member terminated service under the Fund.
22 Participation in this Fund as to any credits transferred
23 under this Section shall terminate on the date of transfer.
24 (b) An active member of the General Assembly Retirement
25 System (and until June 1, 1998, a former member of that
26 System who has not yet retired) may reinstate service and
27 service credits terminated upon receipt of a separation
28 benefit, by payment to the Fund of the amount of the
29 separation benefit plus interest thereon to the date of
30 payment.
31 (c) The application of this Section is not limited to
32 persons who are in service on or after the effective date of
33 this amendatory Act of 1997.
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1 (Source: P.A. 81-1128.)
2 (40 ILCS 5/17-116.4)
3 Sec. 17-116.4. Early retirement incentives.
4 (a) A teacher who is covered by a collective bargaining
5 agreement shall not be eligible for the early retirement
6 incentives provided under this Section unless the collective
7 bargaining agent and the Board of Education have entered into
8 an agreement under which the agent agrees that any payment
9 for accumulated unused sick days to which the employee is
10 entitled upon withdrawal from service may be paid by the
11 Board of Education in installments over a period of up to 5
12 years, and a copy of this agreement has been filed with the
13 Board of the Fund.
14 To be eligible for the benefits provided in this Section,
15 a person must:
16 (1) be a member of this Fund who, on or after May
17 1, 1994, is (i) in active payroll status as a teacher, or
18 (ii) on layoff status from such a position with a right
19 of re-employment or recall to service, or (iii) on leave
20 of absence from such a position, but only if the member
21 on leave has not been receiving a disability benefit
22 under this Article for a continuous period of 2 years or
23 more as of the date of application;
24 (2) have not previously received a retirement
25 pension under this Article;
26 (3) file with the Board and the Board of Education,
27 before March 1, 1994, a written application requesting
28 the benefits provided in this Section and a notice of
29 resignation from employment, which resignation must take
30 effect no earlier than June 1, 1994 and no later than
31 September 1, 1994 unless the applicant's retirement is
32 delayed under subsection (e) of this Section;
33 (4) be eligible to receive a retirement pension
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1 under this Article (for which purpose any age enhancement
2 or creditable service received under this Section may be
3 used) and elect to receive the retirement pension
4 beginning no earlier than June 1, 1994 and no later than
5 September 1, 1994 or the date established under
6 subsection (e) of this Section, if applicable;
7 (5) have attained age 50 (without the use of any
8 age enhancement or creditable service received under this
9 Section) after September 1, 1993 and no later than
10 September 1, 1994;
11 (6) have at least 5 years of creditable service
12 under this Fund or any of the participating systems under
13 the Retirement Systems Reciprocal Act (without the use of
14 any creditable service received under this Section) by
15 the effective date of the retirement pension.
16 (b) An eligible person may establish up to 5 years of
17 creditable service under this Section. In addition, for each
18 period of creditable service established under this Section,
19 a person's age at retirement shall be deemed to be increased
20 by an equal period.
21 The creditable service established under this Section may
22 be used for all purposes under this Article and the
23 Retirement Systems Reciprocal Act, except for the purposes of
24 Section 17-116.1, and the determination of average salary or
25 compensation under this or any other Article of this Code.
26 The age enhancement established under this Section may be
27 used for all purposes under this Article (including
28 calculation of a proportionate pension payable by this Fund
29 under the Retirement Systems Reciprocal Act), except for
30 purposes of the reversionary pension under Section 17-120,
31 and distributions required by federal law on account of age.
32 However, age enhancement established under this Section shall
33 not be used in determining benefits payable under other
34 Articles of this Code under the Retirement Systems Reciprocal
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1 Act.
2 (c) For all creditable service established under this
3 Section, the employer must pay to the Fund an employer
4 contribution consisting of 12% of the member's highest annual
5 full-time rate of compensation for each year of creditable
6 service granted under this Section.
7 The employer contribution shall be paid to the Fund in
8 one of the following ways: (i) in a single sum at the time
9 of the member's retirement, (ii) in equal quarterly
10 installments over a period of 5 years from the date of
11 retirement, or (iii) subject to the approval of the Board of
12 the Fund, in unequal installments over a period of no more
13 than 5 years from the date of retirement, as provided in a
14 payment plan designed by the Fund to accommodate the needs of
15 the employer. The employer's failure to make the required
16 contributions in a timely manner shall not affect the payment
17 of the retirement pension.
18 For all creditable service established under this
19 Section, the employee must pay to the Fund an employee
20 contribution consisting of 4% of the member's highest annual
21 salary rate used in the determination of the retirement
22 pension for each year of creditable service granted under
23 this Section. The employee contribution shall be deducted
24 from the retirement annuity in 24 monthly installments.
25 (d) An annuitant who has received any age enhancement or
26 creditable service under this Section and whose pension is
27 suspended or cancelled under Section 17-149 or 17-150 shall
28 thereby forfeit the age enhancement and creditable service.
29 The forfeiture of creditable service under this subsection
30 shall not entitle the employer to a refund of the employer
31 contribution paid under this Section, nor to forgiveness of
32 any part of that contribution that remains unpaid. The
33 forfeiture of creditable service under this subsection shall
34 not entitle the employee to a refund of the employee
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1 contribution paid under this Section.
2 (e) If the number of employees of an employer that apply
3 for early retirement under this Section exceeds 30% of those
4 eligible, the employer may require that, for any or all of
5 the number of applicants in excess of that 30%, the starting
6 date of the retirement pension enhanced under this Section be
7 no earlier than June 1, 1995 and no later than September 1,
8 1995. The right to have the retirement pension begin before
9 June 1, 1995 shall be allocated among the applicants on the
10 basis of seniority in the service of that employer.
11 This delay applies only to persons who are applying for
12 early retirement incentives under this Section, and does not
13 prevent a person whose application for early retirement
14 incentives has been withdrawn from beginning to receive a
15 retirement pension on the earliest date upon which the person
16 is otherwise eligible under this Article.
17 (f) A member who receives any early retirement incentive
18 under Section 17-116.3 may not receive any early retirement
19 incentive under this Section.
20 (g) Notwithstanding Section 17-157, a person who is
21 receiving early retirement benefits under this Section may
22 establish service credit for a period of up to 3 weeks during
23 the month of January, 1968, during which the person was
24 prevented from working due to civil unrest or a wildcat
25 strike. A person wishing to establish this credit must apply
26 in writing to the Board within 30 days after the effective
27 date of this amendatory Act of 1997 and pay to the Fund an
28 employee contribution calculated at the rate and salary
29 applicable to the employee at the time for which credit is
30 being established, without interest. When a person
31 establishes additional service credit under this subsection,
32 the Fund shall recalculate the annuity originally granted
33 under this Section to reflect the additional credit and shall
34 pay to the annuitant in a lump sum the difference between the
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1 annuity payments paid before the date of the recalculation
2 and the recalculated amount of those payments.
3 (Source: P.A. 88-85.)
4 (40 ILCS 5/18-112) (from Ch. 108 1/2, par. 18-112)
5 Sec. 18-112. Service. "Service": The period beginning
6 on the day a person first became a judge, whether prior or
7 subsequent to the effective date, and ending on the date
8 under consideration, excluding all intervening periods during
9 which he or she was not a judge following resignation or
10 expiration of any term of election or appointment.
11 Service also includes the following:
12 (a) Any period prior to January 1, 1964 during which a
13 judge served as a justice of the peace, police magistrate or
14 master in chancery, or as a civil referee, commissioner or
15 trial assistant to the chief judge in the Municipal Court of
16 Chicago, or performed judicial duties as an assistant to the
17 judge of the Probate Court of Cook County. A judge shall be
18 entitled to credit for all or as much as the judge may desire
19 of such service, not exceeding 8 years, upon payment of the
20 participant's contribution covering such service at the
21 contribution rates in effect on July 1, 1969, together with
22 interest at 4% per annum compounded annually, from the dates
23 the service was rendered to the date of payment, provided
24 credit for such service had not been granted in any public
25 pension fund or retirement system in the State. The required
26 contributions shall be based upon the rate of salary in
27 effect for the judge on the date he or she entered the system
28 or on January 1, 1964, whichever is later.
29 (b) Service rendered after January 1, 1964, as a
30 holdover magistrate or master in chancery of the Circuit
31 Court. A judge shall be entitled to credit for any period of
32 such service, not exceeding a total of 8 years, together with
33 the period of service taken into account in paragraph (a).
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1 Service credit under this paragraph is subject to the same
2 contribution requirements and other limitations that are
3 prescribed for service credit under paragraph (a).
4 (c) Any period that a participant served as a member of
5 the General Assembly, subject to the following conditions:
6 (1) He or she has been a participant in this system for
7 at least 4 years and has contributed to the system for
8 service rendered as a member of the General Assembly
9 subsequent to November 1, 1941, at the contribution rates in
10 effect for a judge on the date of becoming a participant,
11 including interest at 3% per annum compounded annually from
12 the date such service was rendered to the date of payment,
13 based on the salary in effect during such period of service;
14 and
15 (2) The participant is not entitled to credit for such
16 service in any other public retirement system in the State.
17 (d) Any period a participant served as a judge or
18 commissioner of the Court of Claims of this State after
19 November 1, 1941, provided he or she contributes to the
20 system at the contribution rates in effect on the date of
21 becoming a participant, based on salary received during such
22 service, including interest at 3% per annum compounded
23 annually from the date such service was rendered to the date
24 of payment.
25 (e) Any period that a participant served as State's
26 Attorney or Public Defender of any county of this State,
27 subject to the following conditions: (1) such service was not
28 credited under any public pension fund or retirement system;
29 (2) the maximum service to be credited in this system shall
30 be 8 years; (3) the participant must have at least 6 years of
31 service as a judge and as a participant of this system; and
32 (4) the participant has made contributions to the system for
33 such service at the contribution rates in effect on the date
34 of becoming a participant in this system based upon the
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1 salary of the judge on such date, including interest at 4%
2 per annum compounded annually from such date to the date of
3 payment.
4 A judge who terminated service before January 26, 1988
5 and whose retirement annuity began after January 1, 1988 may
6 establish credit for service as a Public Defender in
7 accordance with the other provisions of this subsection by
8 making application and paying the required contributions to
9 the Board not later than 30 days after August 23, 1989. In
10 such cases, the Board shall recalculate the retirement
11 annuity, effective on the first day of the next calendar
12 month beginning at least 30 days after the application is
13 received.
14 (f) Except as otherwise provided under subsection (g),
15 any period as a participating policeman, employee or teacher
16 under Article 5, 14 or 16 of this Code, subject to the
17 following conditions: (1) the credits accrued under Article
18 5, 14 or 16 have been transferred to this system; and (2) the
19 participant has contributed to the system an amount equal to
20 (A) contributions at the rate in effect for participants at
21 the date of membership in this system based upon the salary
22 of the judge on such date, (B) the employer's share of the
23 normal cost under this system for each year that credit is
24 being established, based on the salary in effect at the date
25 of membership in this system, and (C) interest at 6% per
26 annum, compounded annually, from the date of membership to
27 the date of payment; less (D) the amount transferred on
28 behalf of the participant from Article 5, 14 or 16. For the
29 purposes of this subdivision (f), "participant" includes a
30 former participant who is not yet an annuitant, if permitted
31 by the credit transfer Section of the appropriate Article.
32 (g) Any period that a participant served as the
33 Administrative Director of the Circuit Court of Cook County,
34 as Executive Director of the Home Rule Commission, as
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1 assistant corporation counsel in the Chicago Law Department,
2 or as an employee of the Cook County Treasurer, or as the
3 Legal Adviser of the State Board of Education, subject to the
4 following conditions: (1) the maximum amount of such service
5 which may be credited is 10 years (11 years in the case of
6 service as the Legal Adviser of the State Board of
7 Education); (2) in order to qualify for such credit in this
8 system, a judge must have at least 6 years of service as a
9 judge and participant of this system; (3) the last 6 years of
10 service credited in this system shall be as a judge and a
11 participant in this system; (4) credits accrued to the
12 participant under any other public pension fund or public
13 retirement system in the State, if any, by reason of the
14 service to be established under this paragraph (g) has been
15 transferred to this system; (4.5) in the case of service as
16 the Legal Adviser of the State Board of Education,
17 application is made in writing to the board of the system
18 before July 1, 1998; and (5) the participant has contributed
19 to this system the amount, if any, by which the amount
20 transferred pursuant to subdivision (4) of this paragraph, if
21 any, is less than the amount which the participant would have
22 contributed to the system during the period of time being
23 counted as service under this paragraph had the participant
24 been a judge participating in this system during that time,
25 based on the rate of contribution in effect and the salary
26 earned by the participant on the date he or she became a
27 participant, with interest accruing on such deficiency at a
28 rate of 5% per annum from the date he or she became a
29 participant through the date on which such deficiency is
30 paid.
31 (h) Any period that a participant served as a full-time
32 attorney employed by the Chicago Transit Authority created by
33 the Metropolitan Transit Authority Act, subject to the
34 following conditions: (1) any credit received for such
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1 service in the pension fund established under Section 22-101
2 has been terminated; (2) the maximum amount of such service
3 to be credited in this system shall be 10 years; (3) the
4 participant must have at least 6 years of service as a judge
5 and as a participant of this system; and (4) the participant
6 has made contributions to the system for such service at the
7 contribution rates in effect on the date of becoming a
8 participant in this system based upon the salary of the judge
9 on such date, including interest at 5% per annum compounded
10 annually from such date to the date of payment.
11 (i) Any period during which a participant received
12 temporary total disability benefit payments, as provided in
13 Section 18-126.1.
14 Service during a fraction of a month shall be considered
15 a month of service, but no more than one month of service
16 shall be credited for all service during any calendar month.
17 (Source: P.A. 86-272; 86-273; 86-1028; 87-1265.)
18 (40 ILCS 5/18-112.1) (from Ch. 108 1/2, par. 18-112.1)
19 Sec. 18-112.1. Transfer to General Assembly Retirement
20 System.
21 (a) An active member of the General Assembly Retirement
22 System (and until June 1, 1998, a former member of that
23 System who has not yet retired) may apply for transfer of his
24 or her credits and creditable service under this system to
25 the General Assembly Retirement System. Payment by this
26 system to the General Assembly Retirement System shall be
27 made at the same time as the transfer of credits and shall
28 consist of:
29 (1) the amounts credited to the applicant, through
30 employee contributions, including interest if applicable,
31 on the date of transfer; and
32 (2) employer contributions equal to the accumulated
33 employee contributions as determined under clause (1)
-152- LRB9000609EGfgam30
1 above.
2 Participation in this system shall terminate on the date of
3 transfer.
4 (b) An active member of the General Assembly Retirement
5 System (and until June 1, 1998, a former member of that
6 System who has not yet retired) may reinstate service credits
7 terminated upon receipt of a refund by repaying to the system
8 the amount of the refund together with interest thereon, to
9 the date of payment.
10 (c) The application of this Section is not limited to
11 persons who are in service on or after the effective date of
12 this amendatory Act of 1997.
13 (Source: P.A. 83-1440.)
14 (40 ILCS 5/15-144 rep.)
15 Section 15. The Illinois Pension Code is amended by
16 repealing Section 15-144.
17 Section 90. The State Mandates Act is amended by adding
18 Section 8.21 as follows:
19 (30 ILCS 805/8.21 new)
20 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
21 and 8 of this Act, no reimbursement by the State is required
22 for the implementation of any mandate created by this
23 amendatory Act of 1997.
24 Section 99. Effective date. This Act takes effect upon
25 becoming law.".