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90_SB1423
40 ILCS 5/15-103.1 new
40 ILCS 5/15-103.2 new
40 ILCS 5/15-103.3 new
40 ILCS 5/15-134.5 new
40 ILCS 5/15-135 from Ch. 108 1/2, par. 15-135
40 ILCS 5/15-136 from Ch. 108 1/2, par. 15-136
40 ILCS 5/15-136.4
40 ILCS 5/15-141 from Ch. 108 1/2, par. 15-141
40 ILCS 5/15-142 from Ch. 108 1/2, par. 15-142
40 ILCS 5/15-145 from Ch. 108 1/2, par. 15-145
40 ILCS 5/15-146 from Ch. 108 1/2, par. 15-146
40 ILCS 5/15-154 from Ch. 108 1/2, par. 15-154
40 ILCS 5/15-157 from Ch. 108 1/2, par. 15-157
40 ILCS 5/15-158.2
40 ILCS 5/15-158.3
40 ILCS 5/15-165 from Ch. 108 1/2, par. 15-165
40 ILCS 5/15-167 from Ch. 108 1/2, par. 15-167
30 ILCS 805/8.22 new
Amends the State Universities Article of the Pension
Code. Makes numerous changes in relation to the
implementation and administration of the optional retirement
program (renamed the self-managed plan) and the portable
benefit package. Makes participants in the self-managed plan
eligible for certain benefits under the Retirement Systems
Reciprocal Act. Also specifies that required age 70 1/2
distributions are payable regardless of whether an
application has been filed, and delays those required
distributions for one year in the case of persons turning age
70 1/2 before April 1 of a calendar year. Provides that the
System need not make an involuntary age 70 1/2 distribution
to a person who is employed under any retirement system that
participates in the Retirement Systems Reciprocal Act.
Amends the State Mandates Act to require implementation
without reimbursement. Effective immediately.
LRB9011087EGfg
LRB9011087EGfg
1 AN ACT to amend the Illinois Pension Code.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by
5 changing Sections 15-135, 15-136, 15-136.4, 15-141, 15-142,
6 15-145, 15-146, 15-154, 15-157, 15-158.2, 15-158.3, 15-165
7 and 15-167 and adding Sections 15-103.1, 15-103.2, 15-103.3
8 and 15-134.5 as follows:
9 (40 ILCS 5/15-103.1 new)
10 Sec.15-103.1. Traditional Benefit Package. "Traditional
11 benefit package": The defined benefit retirement program
12 maintained under the System which includes retirement
13 annuities payable directly from the System as provided in
14 Sections 15-135 through 15-140 (but disregarding Section
15 15-136.4), disability retirement annuities payable under
16 Section 15-153.2, death benefits payable directly from the
17 System as provided in Sections 15-141 through 15-144,
18 survivors insurance benefits payable directly from the System
19 as provided in Sections 15-145 through 15-149, and
20 contribution refunds as provided in Section 15-154. The
21 traditional benefit package also includes disability benefits
22 as provided in Sections 15-150 through 15-153.3.
23 (40 ILCS 5/15-103.2 new)
24 Sec.15-103.2. Portable Benefit Package. "Portable
25 benefit package": The defined benefit retirement program
26 maintained under the System which includes retirement
27 annuities payable directly from the System as provided in
28 Sections 15-135 through 15-139 (specifically including
29 Section 15-136.4), disability retirement annuities payable
30 under Section 15-153.2, death benefits payable directly from
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1 the System as provided in Sections 15-141 through 15-144, and
2 contribution refunds as provided in Section 15-154. The
3 portable benefit package also includes disability benefits as
4 provided in Sections 15-150 through 15-153.3. The portable
5 benefit package does not include the survivors insurance
6 benefits payable directly from the System as provided in
7 Sections 15-145 through 15-149.
8 (40 ILCS 5/15-103.3 new)
9 Sec.15-103.3. Self-Managed Plan. "Self-managed plan":
10 The defined contribution retirement program maintained under
11 the System as described in Section 15-158.2. The
12 self-managed plan also includes disability benefits as
13 provided in Sections 15-150 through 15-153.3 (but
14 disregarding disability retirement annuities under Section
15 15-153.2). The self-managed plan does not include retirement
16 annuities, death benefits, or survivors insurance benefits
17 payable directly from the System as provided in Sections
18 15-135 through 15-149 and Section 15-153.2, or refunds
19 determined under Section 15-154.
20 (40 ILCS 5/15-134.5 new)
21 Sec.15-134.5. Retirement Program Elections.
22 (a) All participating employees are participants under
23 the traditional benefit package prior to January 1, 1998.
24 Effective as of the date that an employer elects, as
25 described in Section 15-158.2, to offer to its employees the
26 portable benefit package and the self-managed plan as
27 alternatives to the traditional benefit package, each of that
28 employer's eligible employees (as defined in subsection (b))
29 shall be given the choice to elect which retirement program
30 he or she wishes to participate in with respect to all
31 periods of covered employment occurring on and after the
32 effective date of the employee's election. The retirement
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1 program election made by an eligible employee must be made in
2 writing, in the manner prescribed by the System, and within
3 the time period described in subsection (d). The employee
4 election authorized by this Section is a one-time,
5 irrevocable election. If an employee terminates employment
6 after making the election provided under this subsection (a),
7 then upon his or her subsequent re-employment with an
8 employer the original election shall automatically apply to
9 him or her, provided that the employer is then a
10 participating employer as described in Section 15-158.2.
11 (b) "Eligible employee" means an employee (as defined in
12 Section 15-107) who is either a currently eligible employee
13 or a newly eligible employee. For purposes of this Section,
14 a "currently eligible employee" is an employee who is
15 employed by an employer on the effective date on which the
16 employer offers to its employees the portable benefit package
17 and the self-managed plan as alternatives to the traditional
18 benefit package. A "newly eligible employee" is an employee
19 who first becomes employed by an employer after the effective
20 date on which the employer offers its employees the portable
21 benefit package and the self-managed plan as alternatives to
22 the traditional benefit package.
23 (c) An eligible employee who at the time he or she is
24 first eligible to make the election described in subsection
25 (a) does not have sufficient age and service to qualify for a
26 retirement annuity under Section 15-135 may elect to
27 participate in the traditional benefit package, the portable
28 benefit package, or the self-managed plan. An eligible
29 employee who has sufficient age and service to qualify for a
30 retirement annuity under Section 15-135 at the time he or she
31 is first eligible to make the election described in
32 subsection (a) may elect to participate in the traditional
33 benefit package or the portable benefit package, but may not
34 elect to participate in the self-managed plan.
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1 (d) A currently eligible employee must make this
2 election within one year after the effective date of the
3 employer's adoption of the self-managed plan. A newly
4 eligible employee must make this election within 60 days
5 after becoming an eligible employee. The employer shall not
6 remit contributions to the system on behalf of a newly
7 eligible employee until the earlier of the expiration of the
8 employee's 60-day election period or the date on which the
9 employee submits a properly completed election to the
10 employer or to the system.
11 (e) If an eligible employee elects the portable benefit
12 package, that election shall not become effective until the
13 one-year anniversary of the date on which the election is
14 filed with the system, provided the employee remains
15 continuously employed by the employer throughout the one-year
16 waiting period, and any benefits payable to or on account of
17 the employee before such one-year waiting period has ended
18 shall not be determined under the provisions applicable to
19 the portable benefit package but shall instead be determined
20 in accordance with the traditional benefit package. If an
21 eligible employee who has elected the portable benefit
22 package terminates employment covered by the system before
23 the one-year waiting period has ended, then no benefits shall
24 be determined under the portable benefit package provisions
25 while he or she is inactive in the system and upon
26 re-employment with an employer covered by the system he or
27 she shall begin a new one-year waiting period before the
28 provisions of the portable benefit package become effective.
29 (f) An eligible employee shall be provided with written
30 information prepared or prescribed by the system which
31 describes the employee's retirement program choices. The
32 eligible employee shall be offered an opportunity to receive
33 counseling from the system prior to making his or her
34 election. This counseling may consist of videotaped
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1 materials, group presentations, individual consultation with
2 an employee or authorized representative of the system in
3 person or by telephone or other electronic means, or any
4 combination of these methods.
5 (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
6 Sec. 15-135. Retirement annuities - Conditions.
7 (a) A participant who retires in one of the following
8 specified years with the specified amount of service is
9 entitled to a retirement annuity at any age under the
10 retirement program applicable to the participant:
11 35 years if retirement is in 1997 or before;
12 34 years if retirement is in 1998;
13 33 years if retirement is in 1999;
14 32 years if retirement is in 2000;
15 31 years if retirement is in 2001;
16 30 years if retirement is in 2002;
17 35 years if retirement is in 2003 or later.
18 A participant with 8 or more years of service after
19 September 1, 1941, is entitled to a retirement annuity on or
20 after attainment of age 55.
21 A participant with at least 5 but less than 8 years of
22 service after September 1, 1941, is entitled to a retirement
23 annuity on or after attainment of age 62.
24 A participant who has at least 25 years of service in
25 this system as a police officer or firefighter is entitled to
26 a retirement annuity on or after the attainment of age 50, if
27 Rule 4 of Section 15-136 is applicable to the participant.
28 (b) The annuity payment period shall begin on the date
29 specified by the participant submitting a written
30 application, which date shall not be prior to termination of
31 employment or more than one year before the application is
32 received by the board; however, if the participant is not an
33 employee of an employer participating in this System or in a
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1 participating system as defined in Article 20 of this Code on
2 April 1 of the calendar year next following the calendar year
3 in which the participant attains following the attainment of
4 age 70 1/2, the annuity payment period shall begin on that
5 date regardless of whether an application has been filed.
6 (c) An annuity is not payable if the amount provided
7 under Section 15-136 is less than $10 per month.
8 (Source: P.A. 90-65, eff. 7-7-97.)
9 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
10 Sec. 15-136. Retirement annuities - Amount. The
11 provisions of this Section 15-136 apply only to those
12 participants who are participating in the traditional benefit
13 package or the portable benefit package and do not apply to
14 participants who are participating in the self-managed plan.
15 (a) The amount of a participant's the retirement
16 annuity, expressed in the form of a single-life annuity,
17 shall be determined by whichever of the following rules is
18 applicable and provides the largest annuity:
19 Rule 1: The retirement annuity shall be 1.67% of final
20 rate of earnings for each of the first 10 years of service,
21 1.90% for each of the next 10 years of service, 2.10% for
22 each year of service in excess of 20 but not exceeding 30,
23 and 2.30% for each year in excess of 30; or for persons who
24 retire on or after January 1, 1998, 2.2% of the final rate of
25 earnings for each year of service, except that the annuity
26 for those persons having made an election under Section
27 15-154(a-1) shall be calculated and payable under the
28 portable retirement benefit program pursuant to the
29 provisions of Section 15-136.4.
30 Rule 2: The retirement annuity shall be the sum of the
31 following, determined from amounts credited to the
32 participant in accordance with the actuarial tables and the
33 prescribed rate of interest in effect at the time the
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1 retirement annuity begins:
2 (i) The normal annuity which can be provided on an
3 actuarially equivalent basis, by the accumulated normal
4 contributions as of the date the annuity begins; and
5 (ii) an annuity from employer contributions of an
6 amount which can be provided on an actuarially equivalent
7 basis from the accumulated normal contributions made by
8 the participant under Section 15-113.6 and Section
9 15-113.7 plus 1.4 times all other accumulated normal
10 contributions made by the participant, except that the
11 annuity for those persons having made an election under
12 Section 15-154(a-1) shall be calculated and payable under
13 the portable retirement benefit program pursuant to the
14 provisions of Section 15-136.4.
15 Rule 3: The retirement annuity of a participant who is
16 employed at least one-half time during the period on which
17 his or her final rate of earnings is based, shall be equal to
18 the participant's years of service not to exceed 30,
19 multiplied by (1) $96 if the participant's final rate of
20 earnings is less than $3,500, (2) $108 if the final rate of
21 earnings is at least $3,500 but less than $4,500, (3) $120 if
22 the final rate of earnings is at least $4,500 but less than
23 $5,500, (4) $132 if the final rate of earnings is at least
24 $5,500 but less than $6,500, (5) $144 if the final rate of
25 earnings is at least $6,500 but less than $7,500, (6) $156 if
26 the final rate of earnings is at least $7,500 but less than
27 $8,500, (7) $168 if the final rate of earnings is at least
28 $8,500 but less than $9,500, and (8) $180 if the final rate
29 of earnings is $9,500 or more, except that the annuity for
30 those persons having made an election under Section
31 15-154(a-1) shall be calculated and payable under the
32 portable retirement benefit program pursuant to the
33 provisions of Section 15-136.4.
34 Rule 4: A participant who is at least age 50 and has 25
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1 or more years of service as a police officer or firefighter,
2 and a participant who is age 55 or over and has at least 20
3 but less than 25 years of service as a police officer or
4 firefighter, shall be entitled to a retirement annuity of 2
5 1/4% of the final rate of earnings for each of the first 10
6 years of service as a police officer or firefighter, 2 1/2%
7 for each of the next 10 years of service as a police officer
8 or firefighter, and 2 3/4% for each year of service as a
9 police officer or firefighter in excess of 20, except that
10 the annuity for those persons having made an election under
11 Section 15-154(a-1) shall be calculated and payable under the
12 portable retirement benefit program pursuant to the
13 provisions of Section 15-136.4. The retirement annuity for
14 all other service shall be computed under Rule 1, payable
15 under the portable retirement benefit program pursuant to the
16 provisions of Section 15-136.4, if applicable.
17 (b) The retirement annuity provided under Rules 1 and 3
18 above shall be reduced by 1/2 of 1% for each month the
19 participant is under age 60 at the time of retirement.
20 However, this reduction shall not apply in the following
21 cases:
22 (1) For a disabled participant whose disability
23 benefits have been discontinued because he or she has
24 exhausted eligibility for disability benefits under
25 clause (6) of Section 15-152;
26 (2) For a participant who has at least the number
27 of years of service required to retire at any age under
28 subsection (a) of Section 15-135; or
29 (3) For that portion of a retirement annuity which
30 has been provided on account of service of the
31 participant during periods when he or she performed the
32 duties of a police officer or firefighter, if these
33 duties were performed for at least 5 years immediately
34 preceding the date the retirement annuity is to begin.
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1 (c) The maximum retirement annuity provided under Rules
2 1, 2, and 4 shall be the lesser of (1) the annual limit of
3 benefits as specified in Section 415 of the Internal Revenue
4 Code of 1986, as such Section may be amended from time to
5 time and as such benefit limits shall be adjusted by the
6 Commissioner of Internal Revenue, and (2) 80% of final rate
7 of earnings.
8 (d) An annuitant whose status as an employee terminates
9 after August 14, 1969 shall receive automatic increases in
10 his or her retirement annuity as follows:
11 Effective January 1 immediately following the date the
12 retirement annuity begins, the annuitant shall receive an
13 increase in his or her monthly retirement annuity of 0.125%
14 of the monthly retirement annuity provided under Rule 1, Rule
15 2, Rule 3, or Rule 4, contained in this Section, multiplied
16 by the number of full months which elapsed from the date the
17 retirement annuity payments began to January 1, 1972, plus
18 0.1667% of such annuity, multiplied by the number of full
19 months which elapsed from January 1, 1972, or the date the
20 retirement annuity payments began, whichever is later, to
21 January 1, 1978, plus 0.25% of such annuity multiplied by the
22 number of full months which elapsed from January 1, 1978, or
23 the date the retirement annuity payments began, whichever is
24 later, to the effective date of the increase.
25 The annuitant shall receive an increase in his or her
26 monthly retirement annuity on each January 1 thereafter
27 during the annuitant's life of 3% of the monthly annuity
28 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
29 this Section. The change made under this subsection by P.A.
30 81-970 is effective January 1, 1980 and applies to each
31 annuitant whose status as an employee terminates before or
32 after that date.
33 Beginning January 1, 1990, all automatic annual increases
34 payable under this Section shall be calculated as a
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1 percentage of the total annuity payable at the time of the
2 increase, including all increases previously granted under
3 this Article.
4 The change made in this subsection by P.A. 85-1008 is
5 effective January 26, 1988, and is applicable without regard
6 to whether status as an employee terminated before that date.
7 (e) If, on January 1, 1987, or the date the retirement
8 annuity payment period begins, whichever is later, the sum of
9 the retirement annuity provided under Rule 1 or Rule 2 of
10 this Section and the automatic annual increases provided
11 under the preceding subsection or Section 15-136.1, amounts
12 to less than the retirement annuity which would be provided
13 by Rule 3, the retirement annuity shall be increased as of
14 January 1, 1987, or the date the retirement annuity payment
15 period begins, whichever is later, to the amount which would
16 be provided by Rule 3 of this Section. Such increased amount
17 shall be considered as the retirement annuity in determining
18 benefits provided under other Sections of this Article. This
19 paragraph applies without regard to whether status as an
20 employee terminated before the effective date of this
21 amendatory Act of 1987, provided that the annuitant was
22 employed at least one-half time during the period on which
23 the final rate of earnings was based.
24 (f) A participant is entitled to such additional annuity
25 as may be provided on an actuarially equivalent basis, by any
26 accumulated additional contributions to his or her credit.
27 However, the additional contributions made by the participant
28 toward the automatic increases in annuity provided under this
29 Section shall not be taken into account in determining the
30 amount of such additional annuity.
31 (g) If, (1) by law, a function of a governmental unit,
32 as defined by Section 20-107 of this Code, is transferred in
33 whole or in part to an employer, and (2) a participant
34 transfers employment from such governmental unit to such
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1 employer within 6 months after the transfer of the function,
2 and (3) the sum of (A) the annuity payable to the participant
3 under Rule 1, 2, or 3 of this Section (B) all proportional
4 annuities payable to the participant by all other retirement
5 systems covered by Article 20, and (C) the initial primary
6 insurance amount to which the participant is entitled under
7 the Social Security Act, is less than the retirement annuity
8 which would have been payable if all of the participant's
9 pension credits validated under Section 20-109 had been
10 validated under this system, a supplemental annuity equal to
11 the difference in such amounts shall be payable to the
12 participant.
13 (h) On January 1, 1981, an annuitant who was receiving a
14 retirement annuity on or before January 1, 1971 shall have
15 his or her retirement annuity then being paid increased $1
16 per month for each year of creditable service. On January 1,
17 1982, an annuitant whose retirement annuity began on or
18 before January 1, 1977, shall have his or her retirement
19 annuity then being paid increased $1 per month for each year
20 of creditable service.
21 (i) On January 1, 1987, any annuitant whose retirement
22 annuity began on or before January 1, 1977, shall have the
23 monthly retirement annuity increased by an amount equal to 8¢
24 per year of creditable service times the number of years that
25 have elapsed since the annuity began.
26 (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
27 eff. 8-16-97; revised 8-21-97.)
28 (40 ILCS 5/15-136.4)
29 Sec. 15-136.4. Retirement and Survivor Benefits Under
30 Portable Retirement Benefit Package Program.
31 (a) This Section 15-136.4 describes the form of annuity
32 and survivor benefits available to a participant who has
33 elected the portable benefit package and has completed the
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1 one-year waiting period required under subsection (e) of
2 Section 15-134.5. For purposes of this Section, the term
3 "eligible spouse" means the husband or wife of a participant
4 to whom the participant is married on the date the
5 participant's retirement annuity begins, provided. however,
6 that if the participant should die prior to the commencement
7 of retirement date the annuity benefits would have begun,
8 then "eligible spouse" means the husband or wife, if any, to
9 whom the participant was married throughout the one-year
10 period preceding the date of his or her death.
11 (b) This subsection (b) describes the normal form of
12 annuity payable to a participant subject to this Section
13 15-136.4. If the participant is unmarried on the date his or
14 her annuity payments commence, then the annuity payments
15 shall be made in the form of a single-life annuity as
16 described in Section 15-118. If the participant is married
17 on the date his or her annuity payments commence, then the
18 annuity payments shall be paid in the form of a qualified
19 joint and survivor annuity that is the actuarial equivalent
20 of the single-life annuity. Under the "qualified joint and
21 survivor annuity", a reduced amount shall be paid to the
22 participant for his or her lifetime and his or her eligible
23 spouse, if surviving at the participant's death, shall be
24 entitled to receive thereafter a lifetime survivorship
25 annuity in a monthly amount equal to 50% of the reduced
26 monthly amount that was payable to the participant. The last
27 payment of a qualified joint and survivor annuity shall be
28 made as of the first day of the month in which the death of
29 the survivor occurs. If a participant has an eligible spouse
30 on the date his or her annuity payments commence, the annuity
31 shall be paid in the form of a 50% joint and survivor annuity
32 unless the participant elects otherwise in writing and his or
33 her eligible spouse consents to that election. Under a 50%
34 joint and survivor annuity, a reduced amount shall be paid to
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1 the participant for his or her lifetime and his or her
2 eligible spouse, if surviving at the participant's death,
3 shall be entitled to receive thereafter a lifetime
4 survivorship annuity in a monthly amount equal to 50% of the
5 reduced monthly amount that was payable to the participant.
6 The reduced amount payable to the participant under the 50%
7 joint and survivor annuity shall be determined so that the
8 aggregate of the annuity payments expected to be made to the
9 participant and his or her eligible spouse is the actuarial
10 equivalent of a single-life annuity. The last payment of a
11 50% joint and survivor annuity shall be made as of the first
12 day of the month in which the death of the survivor occurs.
13 (c) Instead of the normal form of annuity that would be
14 paid under subsection (b), a participant may elect in writing
15 within the 90-day period prior to the date his or her annuity
16 payments commence to waive the normal form of annuity payment
17 and receive an optional form of annuity as described in
18 subsection (h). If the participant is married and elects an
19 optional form of annuity under subsection (h) other than a
20 joint and survivor annuity with the eligible spouse
21 designated as the contingent annuitant, then such election
22 shall require the consent of his or her eligible spouse in
23 the manner described in subsection (d). At any time during
24 the 90-day period preceding the date the participant's
25 annuity commences, the participant may revoke the optional
26 form elected under this subsection (c) and reinstate coverage
27 under the qualified joint and survivor annuity without the
28 spouse's consent, but an election to revoke the optional form
29 elected and elect a new optional form or designate a
30 different contingent annuitant shall not be effective without
31 the eligible spouse's consent. Instead of the 50% joint and
32 survivor annuity, a participant may elect in writing, within
33 the 90-day period prior to the date his or her annuity
34 payments commence, and only with the consent of his or her
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1 eligible spouse, to receive a monthly amount in the form of a
2 single-life annuity. A participant may also elect instead an
3 optional form of benefit under subsection (k). However, if
4 the participant does elect an optional form of benefit under
5 subsection (k) and if the contingent annuitant under the
6 option is not the participant's eligible spouse, then the
7 optional election shall be canceled and the annuity shall be
8 paid in the form of a 50% joint and survivor annuity unless,
9 within the 90-day period preceding the annuity commencement
10 date, the eligible spouse consents to the optional election.
11 (d) A participant may also revoke any election made
12 under this Section at any time during the 90-day period
13 preceding the date the participant's annuity commences if the
14 purpose of such revocation is to reinstate coverage under the
15 50% joint and survivor annuity.
16 (d) (e) The eligible spouse's consent to any election
17 made pursuant to this Section that requires the eligible
18 spouse's consent shall be in writing and shall acknowledge
19 the effect of the consent. In addition, the eligible
20 spouse's signature on the written consent must be witnessed
21 by a notary public. The eligible spouse's consent need not
22 be obtained if the system is satisfied that there is no
23 eligible spouse, that the eligible spouse cannot be located,
24 or because of any other relevant circumstances. An eligible
25 spouse's consent under this Section is valid only with
26 respect to the specified optional form of payment and, if
27 applicable, alternate contingent annuitant designated by the
28 participant. If the optional form of payment or the
29 alternate contingent annuitant is subsequently changed (other
30 than by a revocation of the optional form and reinstatement
31 of the qualified joint and survivor annuity), a new consent
32 by the eligible spouse is required. The eligible spouse's
33 consent to an election made by a participant pursuant to this
34 Section, once made, may not be revoked by the eligible
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1 spouse.
2 (e) (f) Within a reasonable period of time preceding the
3 date a participant's annuity commences, a participant shall
4 be supplied with a written explanation of (1) the terms and
5 conditions of the normal form single-life annuity and
6 qualified 50% joint and survivor annuity, (2) the
7 participant's right, if any, to elect a single-life annuity
8 or an optional form of payment under subsection (h) (k) in
9 lieu of the 50% joint and survivor annuity and subject, in
10 certain cases, to his or her eligible spouse's consent, if
11 applicable, and (3) the participant's right to reinstate
12 coverage under the qualified 50% joint and survivor annuity
13 prior to his or her annuity commencement date by revoking an
14 election of a single-life annuity or an optional form of
15 benefit under subsection (h) (k).
16 (g) If a participant does not have an eligible spouse
17 on the date his or her annuity payments commence, the
18 participant shall receive a single-life annuity, subject to
19 his or her right, if any, to elect an optional form of
20 benefit. The last payment of the single-life annuity shall be
21 made as of the first day of the month in which the death of
22 the participant occurs.
23 (h) A participant with a least 5 years of service whose
24 employment has not terminated shall be covered by the 50%
25 joint and survivor annuity provisions so that if he or she
26 dies prior to termination of employment, his or her eligible
27 spouse will be entitled to receive an annuity. The annuity
28 payable under this subsection (h) to the eligible spouse
29 shall be actuarially equivalent to the
30 (f) If a married participant with at least 5 years of
31 service dies prior to commencing retirement annuity payments
32 and prior to taking a refund under Section 15-154, his or her
33 eligible spouse is entitled to receive a pre-retirement
34 survivor annuity, if there is not then in effect a waiver of
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1 the pre-retirement survivor annuity. The pre-retirement
2 survivor annuity payable under this subsection shall be a
3 monthly annuity payable for the eligible spouse's life,
4 commencing as of the beginning of the month next following
5 the later of the date of the participant's death or the date
6 the participant would have first met the eligibility
7 requirements for retirement, and continuing through the
8 beginning of the month in which the death of the eligible
9 spouse occurs. The monthly amount payable to the spouse
10 under the pre-retirement survivor annuity shall be equal to
11 the monthly amount that would be payable as a survivor
12 annuity under the qualified joint and survivor annuity
13 described in subsection (b) if: (1) in the case of a
14 participant who dies on or after the date on which the
15 participant has met the eligibility requirements for attained
16 the earliest retirement age, the participant had retired with
17 an immediate qualified joint and survivor annuity on the day
18 before the participant's date of death; or (2) in the case
19 of a participant who dies on or before the earliest date on
20 which the participant would have met the eligibility
21 requirements for attained the earliest retirement age, the
22 participant had separated from service on the date of death,
23 survived to the earliest retirement age based on service
24 prior to his or her death, retired with an immediate
25 qualified joint and survivor annuity at the earliest
26 retirement age, and died on the day after the day on which
27 the participant would have attained the earliest retirement
28 age.
29 (g) A married participant who has not retired may elect
30 at any time to waive the pre-retirement survivor annuity
31 described in subsection (f). Any such election shall require
32 the consent of the participant's eligible spouse in the
33 manner described in subsection (e). A waiver of the
34 pre-retirement survivor annuity shall increase the lump sum
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1 death benefit payable under subsection (b) of Section 15-141.
2 Prior to electing any waiver of the pre-retirement survivor
3 annuity, the participant shall be provided with a written
4 explanation of (1) the terms and conditions of the
5 pre-retirement survivor annuity and the death benefits
6 payable from the system both with and without the
7 pre-retirement survivor annuity, (2) the participant's right
8 to elect a waiver of the pre-retirement survivor annuity
9 coverage subject to his or her spouse's consent, and (3) the
10 participant's right to reinstate pre-retirement survivor
11 annuity coverage at any time by revoking a prior waiver of
12 such coverage.
13 (h) By filing a timely election with the system, a
14 participant who will be eligible to receive a retirement
15 annuity under this Section may waive the normal form of
16 annuity payment described in subsection (b), subject to
17 obtaining the consent of his or her eligible spouse, if
18 applicable, and elect to receive any one of the following
19 optional annuity forms:
20 (1) Joint and Survivor Annuity Options: The
21 participant may elect to receive a reduced annuity
22 payable for his or her life and to have a lifetime
23 survivorship annuity in a monthly amount equal to 50%,
24 75%, or 100% (as elected by the participant) of that
25 reduced monthly amount, to be paid after the
26 participant's death to his or her contingent annuitant,
27 if the contingent annuitant is alive at the time of the
28 participant's death.
29 (2) Single-Life Annuity Option (optional for
30 married participants). The participant may elect to
31 receive a single-life annuity payable for his or her life
32 only.
33 All optional forms shall be in an amount that is the
34 actuarial equivalent of the single-life annuity.
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1 For the purposes of this Section, the term "contingent
2 annuitant" means the beneficiary who is designated by a
3 participant at the time the participant elects a joint and
4 survivor annuity to receive the lifetime survivorship annuity
5 in the event the beneficiary survives the participant at the
6 participant's death.
7 The annuity payable to an eligible spouse of a
8 participant shall commence as of the beginning of the month
9 next following the later of the date of death or the date the
10 participant would have met the eligibility requirements for
11 an annuity and shall continue through the beginning of the
12 month in which the death of the eligible spouse occurs.
13 No benefit shall be payable under this subsection (h) for
14 death during employment after the participant has satisfied
15 the requirements for retirement if an option is effective
16 under subsection (k).
17 (i) A participant who (1) has terminated employment with
18 at least 5 years of service, (2) has not begun receiving
19 annuity payments, (3) has not taken a refund under Section
20 15-154(a-2), and (4) has not elected an effective option
21 under subsection (k), shall be covered by the 50% joint and
22 survivor annuity provisions of subsection (b) until the date
23 his or her annuity payments commence. If the participant
24 dies before the date his or her annuity payments commence,
25 the participant's surviving eligible spouse shall receive an
26 annuity computed in accordance with the applicable provisions
27 of this Section as if the participant's annuity payments had
28 commenced on the first day of the month coincident with or
29 next following the later of his or her date of death or the
30 date the participant would have been eligible for a
31 retirement annuity based on service prior to his or her
32 death. The annuity payable to such an eligible spouse shall
33 commence on the first day of the month coincident with or
34 next following the later of the participant's date of death
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1 or the date the participant would have been eligible for a
2 retirement annuity based on service prior to his death and
3 shall continue through the beginning of the month in which
4 the death of the eligible spouse occurs.
5 (j) The provisions of subsection (i) shall not affect
6 the right of a participant to elect a single-life annuity,
7 pursuant to the provisions of subsection (b).
8 (k) By filing a timely election with the system, a
9 participant who will be eligible to receive a retirement
10 annuity under this Section may designate his or her spouse or
11 any person approved by the system as his or her contingent
12 annuitant and elect to receive an annuity payable in
13 accordance with one of the following options, instead of the
14 annuity to which he or she may otherwise become entitled:
15 Option 1: The participant shall receive a reduced
16 annuity payable for life, and payments in the amount of
17 100% of such reduced amount shall, after the
18 participant's death, be continued to the contingent
19 annuitant during the latter's lifetime.
20 Option 2: The participant shall receive a reduced
21 annuity payable for life, and payments in the amount of
22 75% of such reduced annuity shall, after the
23 participant's death, be continued to the contingent
24 annuitant during the latter's lifetime.
25 Option 3: The participant shall receive a reduced
26 annuity payable for life, and payments in the amount of
27 50% of such reduced annuity shall, after the
28 participant's death, be continued to the contingent
29 annuitant during the latter's lifetime.
30 The aggregate of the annuity payments expected to be paid
31 to a participant and his contingent annuitant under any of
32 the above options shall be the actuarial equivalent of the
33 annuity that the participant is otherwise entitled to receive
34 upon retirement.
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1 (i) Under no circumstances may an option be elected,
2 changed, or revoked after the date the participant's
3 retirement annuity commences. An option in favor of a
4 contingent annuitant who is not the participant's eligible
5 spouse may be revoked at any time prior to the date the
6 participant's annuity payments commence. If the contingent
7 annuitant under the elected option is not the participant's
8 eligible spouse, then the election is valid only if the
9 eligible spouse consents to the participant's optional
10 election and to the specific contingent annuitant within the
11 90-day period preceding the date the participant's annuity
12 commences.
13 (j) An election made pursuant to this subsection (h) (k)
14 shall become inoperative if the participant's employment
15 terminates before he or she is eligible for a retirement
16 annuity, or if the participant or the contingent annuitant
17 dies before the date the participant's annuity payments
18 commence, or if the eligible spouse's consent is required and
19 not given.
20 (k) For purposes of applying the provisions of Section
21 20-123 of this Code, the portable benefit package shall be
22 treated as if it were provided by a participating system that
23 has no survivor's annuity benefit. An effective option under
24 this subsection (k) takes the place of any benefit otherwise
25 payable under this Section, and the form made available by
26 the system for election of the option shall so specify.
27 (1) Within the appropriate applicable period under
28 Section 417 of the Internal Revenue Code of 1986, as amended
29 from time to time, a participant shall be supplied with a
30 written explanation of (1) the terms and conditions of the
31 preretirement survivor annuity under subsections (h) and (i),
32 (2) the participant's right, if any, to elect a single-life
33 annuity or an optional form of payment under subsection (k)
34 in lieu of the preretirement survivor annuity and subject, in
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1 certain cases, to his or her eligible spouse's consent, and
2 (3) the participant's right to reinstate coverage under the
3 preretirement survivor annuity by revoking an election of a
4 single-life annuity or an optional form of benefit under
5 subsection (k).
6 (Source: P.A. 90-448, eff. 8-16-97.)
7 (40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
8 Sec. 15-141. Death benefits - Death of participant.
9 (a) The beneficiary of a participant under the
10 traditional benefit package is entitled to a death benefit
11 equal to the sum of (1) the employee's accumulated normal and
12 additional contributions on the date of death, (2) the
13 employee's accumulated survivors insurance contributions on
14 the date of death, if a survivors insurance benefit is not
15 payable, (3) an amount equal to the employee's final rate of
16 earnings, but not more than $5,000 if (i) the beneficiary,
17 under rules of the board, was dependent upon the participant,
18 (ii) the participant was a participating employee immediately
19 prior to his or her death, and (iii) a survivors insurance
20 benefit is not payable, and (4) $2,500 if (i) the beneficiary
21 was not dependent upon the participant, (ii) the participant
22 was a participating employee immediately prior to his or her
23 death, and (iii) a survivors insurance benefit is not
24 payable.
25 (b) However, If the participant has elected to
26 participate in the portable benefit package and has completed
27 the one-year waiting period required under subsection (e) of
28 retirement benefit program by making the election specified
29 in Section 15-134.5 15-154(a-1), the death benefit shall be
30 calculated as follows. The death benefit shall be equal to
31 the employee's accumulated normal and additional
32 contributions on the date of death plus, or if the employee
33 died with 5 or more years of service for employment as
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1 defined in Section 15-113.1, his or her beneficiary shall
2 also be entitled to employer contributions in an amount equal
3 to the sum of the accumulated normal and additional
4 contributions; except that if a pre-retirement survivor
5 annuity benefit to a surviving spouse is payable under
6 Section 15-136.4, the death benefit payable under this
7 paragraph shall be reduced, but to not less than zero, by the
8 actuarial value of the benefit payable to the surviving
9 spouse. The beneficiary of the participant must be his or
10 her spouse unless the spouse has consented to the designation
11 of another beneficiary in the manner described in subsection
12 (d) of Section 15-136.4.
13 (c) If payments are made under any State or Federal
14 Workers' Compensation or Occupational Diseases Law because of
15 the death of an employee, the portion of the death benefit
16 payable from employer contributions shall be reduced by the
17 total amount of the payments.
18 (Source: P.A. 90-448, eff. 8-16-97.)
19 (40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142)
20 Sec. 15-142. Death benefits - Death of annuitant. Upon
21 the death of an annuitant receiving a retirement annuity or
22 disability retirement annuity, the annuitant's beneficiary
23 shall, if a survivor's insurance benefit is not payable under
24 Section 15-145 and a pre-retirement survivor or an annuity is
25 not payable under Section 15-136.4, be entitled to a death
26 benefit equal to the greater of the following: (1) the
27 excess, if any, of the sum of the accumulated normal,
28 survivors insurance, and additional contributions as of the
29 date of retirement, or the date the disability retirement
30 annuity began, whichever is earlier, over the sum of all
31 annuity payments made prior to the date of death, or (2)
32 $1,000.
33 (Source: P.A. 90-448, eff. 8-16-97.)
-23- LRB9011087EGfg
1 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
2 Sec. 15-145. Survivors insurance benefits; Conditions
3 and amounts.
4 (a) The survivors insurance benefits provided under this
5 Section shall be payable to the eligible survivors of a
6 participant covered under the traditional benefit package
7 upon the death of (1) a participating employee with at least
8 1 1/2 years of service, (2) a participant who terminated
9 employment with at least 10 years of service, and (3) an
10 annuitant in receipt of a retirement annuity or disability
11 retirement annuity under this Article.
12 Service under the State Employees' Retirement System of
13 Illinois, the Teachers' Retirement System of the State of
14 Illinois, and the Public School Teacher's Pension and
15 Retirement Fund of Chicago shall be considered in determining
16 eligibility for survivors benefits under this Section.
17 If by law, a function of a governmental unit, as defined
18 by Section 20-107, is transferred in whole or in part to an
19 employer, and an employee transfers employment from this
20 governmental unit to such employer within 6 months after the
21 transfer of this function, the service credits in the
22 governmental unit's retirement system which have been
23 validated under Section 20-109 shall be considered in
24 determining eligibility for survivors benefits under this
25 Section.
26 (b) A surviving spouse of a deceased participant, or of
27 a deceased annuitant who had a survivors insurance
28 beneficiary at the time of retirement, shall receive a
29 survivors annuity of 30% of the final rate of earnings.
30 Payments shall begin on the day following the participant's
31 or annuitant's death or the date the surviving spouse attains
32 age 50, whichever is later, and continue until the death of
33 the surviving spouse. The annuity shall be payable to the
34 surviving spouse prior to attainment of age 50 if the
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1 surviving spouse has in his or her care a deceased
2 participant's or annuitant's dependent unmarried child under
3 age 18 (under age 22 if a full-time student) who is eligible
4 for a survivors annuity. Remarriage of a surviving spouse
5 prior to attainment of age 55 shall disqualify him or her for
6 the receipt of a survivors annuity.
7 (c) Each dependent unmarried child under age 18 (under
8 age 22 if a full-time student) of a deceased participant, or
9 of a deceased annuitant who had a survivors insurance
10 beneficiary at the time of his or her retirement, shall
11 receive a survivors annuity equal to the sum of (1) 20% of
12 the final rate of earnings, and (2) 10% of the final rate of
13 earnings divided by the number of children entitled to this
14 benefit. Payments shall begin on the day following the
15 participant's or annuitant's death and continue until the
16 child marries, dies, or attains age 18 (age 22 if a full-time
17 student). If the child is in the care of a surviving spouse
18 who is eligible for survivors insurance benefits, the child's
19 benefit shall be paid to the surviving spouse.
20 Each unmarried child over age 18 of a deceased
21 participant or of a deceased annuitant who had a survivor's
22 insurance beneficiary at the time of his or her retirement,
23 and who was dependent upon the participant or annuitant by
24 reason of a physical or mental disability which began prior
25 to the date the child attained age 18 (age 22 if a full-time
26 student), shall receive a survivor's annuity equal to the sum
27 of (1) 20% of the final rate of earnings, and (2) 10% of the
28 final rate of earnings divided by the number of children
29 entitled to survivors benefits. Payments shall begin on the
30 day following the participant's or annuitant's death and
31 continue until the child marries, dies, or is no longer
32 disabled. If the child is in the care of a surviving spouse
33 who is eligible for survivors insurance benefits, the child's
34 benefit may be paid to the surviving spouse. For the
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1 purposes of this Section, disability means inability to
2 engage in any substantial gainful activity by reason of any
3 medically determinable physical or mental impairment that can
4 be expected to result in death or that has lasted or can be
5 expected to last for a continuous period of at least one
6 year.
7 (d) Each dependent parent of a deceased participant, or
8 of a deceased annuitant who had a survivors insurance
9 beneficiary at the time of his or her retirement, shall
10 receive a survivors annuity equal to the sum of (1) 20% of
11 final rate of earnings, and (2) 10% of final rate of earnings
12 divided by the number of parents who qualify for the benefit.
13 Payments shall begin when the parent reaches age 55 or the
14 day following the participant's or annuitant's death,
15 whichever is later, and continue until the parent dies.
16 Remarriage of a parent prior to attainment of age 55 shall
17 disqualify the parent for the receipt of a survivors annuity.
18 (e) In addition to the survivors annuity provided above,
19 each survivors insurance beneficiary shall, upon death of the
20 participant or annuitant, receive a lump sum payment of
21 $1,000 divided by the number of such beneficiaries.
22 (f) The changes made in this Section by Public Act
23 81-712 pertaining to survivors annuities in cases of
24 remarriage prior to age 55 shall apply to each survivors
25 insurance beneficiary who remarries after June 30, 1979,
26 regardless of the date that the participant or annuitant
27 terminated his employment or died.
28 (g) On January 1, 1981, any person who was receiving a
29 survivors annuity on or before January 1, 1971 shall have the
30 survivors annuity then being paid increased by 1% for each
31 full year which has elapsed from the date the annuity began.
32 On January 1, 1982, any survivor whose annuity began after
33 January 1, 1971, but before January 1, 1981, shall have the
34 survivor's annuity then being paid increased by 1% for each
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1 year which has elapsed from the date the survivor's annuity
2 began. On January 1, 1987, any survivor who began receiving a
3 survivor's annuity on or before January 1, 1977, shall have
4 the monthly survivor's annuity increased by $1 for each full
5 year which has elapsed since the date the survivor's annuity
6 began.
7 (h) If the sum of the lump sum and total monthly
8 survivor benefits payable under this Section upon the death
9 of a participant amounts to less than the sum of the death
10 benefits payable under items (2) and (3) of Section 15-141,
11 the difference shall be paid in a lump sum to the beneficiary
12 of the participant who is living on the date that this
13 additional amount becomes payable.
14 (i) If the sum of the lump sum and total monthly
15 survivor benefits payable under this Section upon the death
16 of an annuitant receiving a retirement annuity or disability
17 retirement annuity amounts to less than the death benefit
18 payable under Section 15-142, the difference shall be paid to
19 the beneficiary of the annuitant who is living on the date
20 that this additional amount becomes payable.
21 (j) Effective on the later of (1) January 1, 1990, or
22 (2) the January 1 on or next after the date on which the
23 survivor annuity begins, if the deceased member died while
24 receiving a retirement annuity, or in all other cases the
25 January 1 nearest the first anniversary of the date the
26 survivor annuity payments begin, every survivors insurance
27 beneficiary shall receive an increase in his or her monthly
28 survivors annuity of 3%. On each January 1 after the initial
29 increase, the monthly survivors annuity shall be increased by
30 3% of the total survivors annuity provided under this
31 Article, including previous increases provided by this
32 subsection. Such increases shall apply to the survivors
33 insurance beneficiaries of each participant and annuitant,
34 whether or not the employment status of the participant or
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1 annuitant terminates before the effective date of this
2 amendatory Act of 1990.
3 (k) If the Internal Revenue Code of 1986, as amended,
4 requires that the survivors benefits be payable at an age
5 earlier than that specified in this Section the benefits
6 shall begin at the earlier age, in which event, the
7 survivor's beneficiary shall be entitled only to that amount
8 which is equal to the actuarial equivalent of the benefits
9 provided by this Section.
10 (l) The changes made to this Section and Section 15-131
11 by this amendatory Act of 1997, relating to benefits for
12 certain unmarried children who are full-time students under
13 age 22, apply without regard to whether the deceased member
14 was in service on or after the effective date of this
15 amendatory Act of 1997. These changes do not authorize the
16 repayment of a refund or a re-election of benefits, and any
17 benefit or increase in benefits resulting from these changes
18 is not payable retroactively for any period before the
19 effective date of this amendatory Act of 1997.
20 (Source: P.A. 90-448, eff. 8-16-97.)
21 (40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
22 Sec. 15-146. Survivors insurance benefits - Minimum
23 amounts.
24 (a) The minimum total survivors annuity payable on
25 account of the death of a participant shall be 50% of the
26 retirement annuity which would have been provided under Rule
27 1, Rule 2, or Rule 3 of Section 15-136 upon the participant's
28 attainment of the minimum age at which the penalty for early
29 retirement would not be applicable or the date of the
30 participant's death, whichever is later, on the basis of
31 credits earned prior to the time of death.
32 (b) The minimum total survivors annuity payable on
33 account of the death of an annuitant shall be 50% of the
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1 retirement annuity which is payable under Section 15-136 at
2 the time of death or 50% of the disability retirement annuity
3 payable under Section 15-153.2. This minimum survivors
4 annuity shall apply to each participant and annuitant who
5 dies after September 16, 1979, whether or not his or her
6 employee status terminates before or after that date.
7 (c) If an annuitant has elected a reversionary annuity,
8 the retirement annuity referred to in this Section is that
9 which would have been payable had such election not been
10 filed.
11 (d) If a participant has made the election provided for
12 under Section 15-154(a-1), the minimum survivor benefit shall
13 be determined under Section 15-136.4.
14 (Source: P.A. 90-448, eff. 8-16-97.)
15 (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
16 Sec. 15-154. Refunds.
17 (a) A participant whose status as an employee is
18 terminated, regardless of cause, or who has been on lay off
19 status for more than 120 days, and who is not on leave of
20 absence, is entitled to a refund of contributions upon
21 application; except that not more than one such refund
22 application may be made during any academic year.
23 Except as set forth in subsections (a-1) and (a-2), the
24 refund shall be the sum of the accumulated normal, additional
25 and survivors insurance contributions, less the amount of
26 interest credited on these contributions each year in excess
27 of 4 1/2% of the amount on which interest was calculated.
28 (a-1) A person who elects, in accordance with the
29 requirements of Section 15-134.5, to participate in the
30 portable benefit package and who becomes a participating
31 employee under that retirement program upon the conclusion of
32 the one-year waiting period applicable to the portable
33 benefit package election shall have his or her refund
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1 calculated in accordance with the provisions of subsection
2 (a-2).
3 (a-1) Every person who becomes a participating employee
4 after the date on which his or her employer first offers an
5 optional retirement program under Section 15-158.2 may elect
6 within 60 days of becoming a participant to have any refund
7 calculated pursuant to subsection (a-2) by forgoing all
8 survivors insurance benefits to which the person's survivors
9 would otherwise be entitled under this Article. This
10 election is irrevocable and may be made by filing an election
11 with the system on such form as the Executive Director shall
12 prescribe.
13 Each person who is a participating employee on the date
14 on which his or her employer first offers an optional
15 retirement program under Section 15-158.2 shall have a
16 one-time option to elect to have his or her refund calculated
17 pursuant to subsection (a-2), by forgoing all survivors
18 insurance benefits to which the person's survivors would
19 otherwise be entitled under this Article. The election will
20 not be effective until one year after the election is filed
21 with the system. This election is irrevocable and may be
22 made by filing an election with the system, on such form as
23 the Executive Director shall prescribe, within one year after
24 the date on which his or her employer first offers an
25 optional retirement program under Section 15-158.2.
26 A person may make the one-time irrevocable election
27 authorized under this Section or the election authorized
28 under Section 15-158.2(g), but may not make both elections.
29 Any person interested in electing the portable retirement
30 benefit program provided under this Section and Section
31 15-136.4 must be given a consultation with the State
32 Universities Retirement System before making that election.
33 (a-2) The refund payable to a participant described in
34 elected under subsection (a-1) shall be the sum of the
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1 participant's accumulated normal and additional
2 contributions, as defined in Sections 15-116 and 15-117. If
3 the participant terminates with 5 or more years of service
4 for employment as defined in Section 15-113.1, he or she
5 shall also be entitled to a distribution refund of employer
6 contributions in an amount equal to the sum of the
7 accumulated normal and additional contributions, as defined
8 in Sections 15-116 and 15-117.
9 (b) Upon acceptance of a refund, the participant
10 forfeits all accrued rights and credits in the System, and if
11 subsequently reemployed, the participant shall be considered
12 a new employee subject to all the qualifying conditions for
13 participation and eligibility for benefits applicable to new
14 employees. If such person again becomes a participating
15 employee and continues as such for 2 years, or is employed by
16 an employer and participates for at least 2 years in the
17 Federal Civil Service Retirement System, all such rights,
18 credits, and previous status as a participant shall be
19 restored upon repayment of the amount of the refund, together
20 with compound interest thereon from the date the refund was
21 received to the date of repayment at the rate of 6% per annum
22 through August 31, 1982, and at the effective rates after
23 that date.
24 (c) If a participant covered under the traditional
25 benefit package has made survivors insurance contributions,
26 but has no survivors insurance beneficiary upon retirement,
27 he or she shall be entitled to a refund of the accumulated
28 survivors insurance contributions, or to an additional
29 annuity the value of which is equal to the accumulated
30 survivors insurance contributions.
31 (d) A participant, upon application, is entitled to a
32 refund of his or her accumulated additional contributions
33 attributable to the additional contributions described in the
34 last sentence of subsection (c) of Section 15-157 except
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1 those covering the cost of the annual increase in the
2 retirement annuity provided under Section 15-136. Upon the
3 acceptance of such a refund of accumulated additional
4 contributions, the participant forfeits all rights and
5 credits which may have accrued because of such contributions.
6 (e) A participant who terminates his or her employee
7 status and elects to waive service credit under Section
8 15-154.2, is entitled to a refund of the accumulated normal,
9 additional and survivors insurance contributions, if any,
10 which were credited the participant for this service, or to
11 an additional annuity the value of which is equal to the
12 accumulated normal, additional and survivors insurance
13 contributions, if any; except that not more than one such
14 refund application may be made during any academic year. Upon
15 acceptance of this refund, the participant forfeits all
16 rights and credits accrued because of this service.
17 (f) If a police officer or firefighter receives a
18 retirement annuity under Rule 1, 2, or 3 of Section 15-136,
19 he or she shall be entitled at retirement to a refund of the
20 difference between his or her accumulated normal
21 contributions and the normal contributions which would have
22 accumulated had such person filed a waiver of the retirement
23 formula provided by Rule 4 of Section 15-136.
24 (g) If, at the time of retirement, a participant would
25 be entitled to a retirement annuity under Rule 1, 2, 3 or 4
26 of Section 15-136 that exceeds the maximum specified in
27 clause (1) of subsection (c) of Section 15-136, he or she
28 shall be entitled to a refund of the employee contributions,
29 if any, paid under Section 15-157 after the date upon which
30 continuance of such contributions would have otherwise caused
31 the retirement annuity to exceed this maximum, plus compound
32 interest at the effective rates.
33 (Source: P.A. 90-448, eff. 8-16-97.)
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1 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
2 Sec. 15-157. Employee Contributions.
3 (a) Each participating employee shall make contributions
4 towards the retirement benefits payable under the retirement
5 program applicable to the employee from annuity of each
6 payment of earnings applicable to employment under this
7 system on and after the date of becoming a participant, as
8 follows: Prior to September 1, 1949, 3 1/2% of earnings;
9 from September 1, 1949 to August 31, 1955, 5%; from September
10 1, 1955 to August 31, 1969, 6%; from September 1, 1969,
11 6 1/2%. These contributions are to be considered as normal
12 contributions for purposes of this Article.
13 Each participant who is a police officer or firefighter
14 shall make normal contributions of 8% of each payment of
15 earnings applicable to employment as a police officer or
16 firefighter under this system on or after September 1, 1981,
17 unless he or she files with the board within 60 days after
18 the effective date of this amendatory Act of 1991 or 60 days
19 after the board receives notice that he or she is employed as
20 a police officer or firefighter, whichever is later, a
21 written notice waiving the retirement formula provided by
22 Rule 4 of Section 15-136. This waiver shall be irrevocable.
23 If a participant had met the conditions set forth in Section
24 15-132.1 prior to the effective date of this amendatory Act
25 of 1991 but failed to make the additional normal
26 contributions required by this paragraph, he or she may elect
27 to pay the additional contributions plus compound interest at
28 the effective rate. If such payment is received by the
29 board, the service shall be considered as police officer
30 service in calculating the retirement annuity under Rule 4 of
31 Section 15-136.
32 (b) Starting September 1, 1969, each participating
33 employee shall make additional contributions of 1/2 of 1% of
34 earnings to finance a portion of the cost of the annual
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1 increases in retirement annuity provided under Section
2 15-136, except that with respect to participants in the
3 self-managed plan this additional contribution shall be used
4 to finance the benefits obtained under that retirement
5 program.
6 (c) In addition to the amounts described in subsections
7 (a) and (b) of this Section, each participating employee
8 shall make additional contributions of 1% of earnings
9 applicable under this system on and after August 1, 1959.
10 The contributions contribution made under this subsection (c)
11 shall be considered as survivor's insurance contributions for
12 purposes of this Article if the employee is covered under the
13 traditional benefit package, and such contributions shall be
14 considered as additional contributions for purposes of this
15 Article if the employee is participating in the self-managed
16 plan or has elected to participate in the portable benefit
17 package and has completed the applicable one-year waiting
18 period shall be used to finance survivors insurance benefits,
19 unless the participant has made an election under Section
20 15-154(a-1), in which case the contribution made under this
21 subsection shall be used to finance the benefits obtained
22 under that election. Contributions in excess of $80 during
23 any fiscal year beginning before August 31, 1969 and in
24 excess of $120 during any fiscal year thereafter until
25 September 1, 1971 shall be considered as additional
26 contributions for purposes of this Article.
27 (d) If the board by board rule so permits and subject to
28 such conditions and limitations as may be specified in its
29 rules, a participant may make other additional contributions
30 of such percentage of earnings or amounts as the participant
31 shall elect in a written notice thereof received by the
32 board.
33 (e) That fraction of a participant's total accumulated
34 normal contributions, the numerator of which is equal to the
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1 number of years of service in excess of that which is
2 required to qualify for the maximum retirement annuity, and
3 the denominator of which is equal to the total service of the
4 participant, shall be considered as accumulated additional
5 contributions. The determination of the applicable maximum
6 annuity and the adjustment in contributions required by this
7 provision shall be made as of the date of the participant's
8 retirement.
9 (f) Notwithstanding the foregoing, a participating
10 employee shall not be required to make contributions under
11 this Section after the date upon which continuance of such
12 contributions would otherwise cause his or her retirement
13 annuity to exceed the maximum retirement annuity as specified
14 in clause (1) of subsection (c) of Section 15-136.
15 (g) A participating employee may make contributions for
16 the purchase of service credit under this Article.
17 (Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97;
18 90-448, eff. 8-16-97; 90-511, eff. 8-22-97; revised
19 11-14-97.)
20 (40 ILCS 5/15-158.2)
21 Sec. 15-158.2. Self-managed plan Optional retirement
22 program for educational employees.
23 (a) Purpose. The General Assembly finds that it is
24 important for colleges and universities to be able to attract
25 and retain the most qualified employees and that in order to
26 attract and retain these employees, colleges and universities
27 should have the flexibility to provide a defined contribution
28 plan as an alternative retirement program for eligible
29 employees who elect not to participate in a defined benefit
30 the other retirement program programs provided under this
31 Article. Accordingly, the State Universities Retirement
32 System is hereby authorized to establish and administer a
33 self-managed plan, which shall offer participating employees
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1 the opportunity to accumulate assets for retirement through a
2 combination of employee and employer contributions that may
3 be invested in mutual funds, collective investment funds, or
4 other investment products and used to purchase annuity
5 contracts, either fixed or variable or a combination thereof.
6 The plan must be qualified under the Internal Revenue Code of
7 1986.
8 (b) Definitions. For the purposes of this Section,
9 "eligible employee" means an employee who is eligible to
10 participate in the State Universities Retirement System and
11 who does not have sufficient age and service to qualify for a
12 retirement annuity under Section 15-135. A "currently
13 eligible employee" is an employee who becomes an eligible
14 employee on the effective date of the optional retirement
15 program established by the employee's employer. A "newly
16 eligible employee" is an employee who becomes an eligible
17 employee after the effective date of the optional retirement
18 program established by the employee's employer.
19 (b) Adoption by employers. (c) Program. Each employer
20 subject to this Article may elect to adopt the self-managed
21 plan established establish an optional retirement program
22 under this Section; this election is irrevocable. An
23 employer's election to adopt the self-managed plan makes
24 available to the eligible employees of that employer the
25 elections described in Section 15-134.5. for the eligible
26 employees whom it employs. The optional retirement program
27 shall provide retirement benefits for participating employees
28 through the purchase of annuity contracts, either fixed or
29 variable or a combination thereof, through the purchase of
30 mutual funds, or through both and shall also provide for
31 disability benefits.
32 The State Universities Retirement System shall be the
33 plan sponsor for the self-managed plan and shall prepare a
34 plan document and prescribe such rules and procedures as are
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1 considered necessary or desirable for the administration of
2 the self-managed plan program. Consistent with its fiduciary
3 duty to the participants and beneficiaries of the
4 self-managed plan program, the Board of Trustees of the
5 System may delegate aspects of plan program administration as
6 it sees fit to companies authorized to do business in this
7 State, to the employers, or to a combination of both.
8 The plan must be qualified under the Internal Revenue
9 Code of 1986.
10 (c) Selection of service providers and funding vehicles.
11 (d) Proposals. The System, in consultation with the
12 employers, shall solicit proposals to provide administrative
13 services and funding vehicles for the self-managed plan
14 participate in the program from insurance and annuity
15 companies and mutual fund companies, banks, trust companies,
16 or other financial institutions authorized to do business in
17 this State. In reviewing the proposals received and
18 approving and contracting with no fewer than 2 and no more
19 than 7 companies, at least 2 of which must be insurance and
20 annuity companies, the Board of Trustees of the System shall
21 consider, among other things, the following criteria:
22 (1) the nature and extent of the benefits that
23 would be provided to the participants;
24 (2) the reasonableness of the benefits in relation
25 to the premium charged;
26 (3) the suitability of the benefits to the needs
27 and interests of the participating employees and the
28 employer;
29 (4) the ability of the company to provide benefits
30 under the contract and the financial stability of the
31 company; and
32 (5) the efficacy of the contract in the recruitment
33 and retention of employees.
34 An employer that elects to offer an optional retirement
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1 program under subsection (c) may only select for
2 participation in the program 2 or more of the companies
3 approved by the Board of Trustees of the System. The System,
4 in consultation with the employers, shall periodically review
5 each approved company.; A company may continue to provide
6 administrative services and funding vehicles for the
7 self-managed plan participate in the program only so long as
8 it continues to be an approved company under contract with
9 the Board.
10 (d) Employee Direction. Employees who are participating
11 in the program must be allowed to direct the transfer of
12 their account balances among the various investment options
13 offered, subject to applicable contractual provisions. The
14 participant shall not be deemed a fiduciary by reason of
15 providing such investment direction. A person who is a
16 fiduciary shall not be liable for any loss resulting from
17 such investment direction and shall not be deemed to have
18 breached any fiduciary duty by acting in accordance with that
19 direction. Neither the System nor the employer guarantees
20 any of the investments in the employee's account balances.
21 (e) Participation. An employee eligible to participate
22 in the self-managed plan must make a written election in
23 accordance with the provisions of Section 15-134.5 and the
24 procedures established by the System. Participation in the
25 self-managed plan by an electing employee shall begin on the
26 first day of the first pay period following the later of the
27 date the employee's election is filed with the System or the
28 effective date as of which the employee's employer begins to
29 offer participation in the self-managed plan. Employers may
30 not make the self-managed plan available earlier than January
31 1, 1998. An employee's participation in any other retirement
32 program administered by the System under this Article shall
33 terminate on the date that participation in the self-managed
34 plan begins.
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1 An employee who has elected to participate in the
2 self-managed plan under this Section must continue
3 participation while employed in an eligible position, and may
4 not participate in any other retirement program administered
5 by the System under this Article while employed by that
6 employer or any other employer that has adopted the
7 self-managed plan, unless the self-managed plan is terminated
8 in accordance with subsection (i).
9 Participation in the self-managed plan under this Section
10 shall constitute membership in the State Universities
11 Retirement System.
12 A participant under this Section shall be entitled to the
13 benefits of Article 20 of this Code modified to reflect the
14 following principles:
15 (1) The amount of any retirement annuities payable
16 under this Section depend solely on the value of the
17 participant's vested account balances and are not subject
18 to a maximum annuity benefit limitation or any adjustment
19 pursuant to the proportional retirement annuity
20 provisions of Article 20. If a participant in the
21 self-managed plan under this Section elects to apply the
22 provisions of Article 20, the dollar amount of the
23 proportional retirement annuity payable from the System
24 shall be deemed to be zero and the provisions of the
25 second paragraph of Section 20-131 shall not apply with
26 respect to the retirement annuity benefits payable to the
27 participant under this Section.
28 (2) For purposes of Section 20-123 of this Code,
29 the self-managed plan shall be treated as if it were
30 provided by a participating system that has no survivor's
31 annuity benefit.
32 (3) Notwithstanding Section 20-125 of this Code,
33 upon reemployment by a participating system of a retired
34 participant in the self-managed plan, the retirement
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1 annuity payment made to such participant from any annuity
2 contracts acquired from the participant's self-managed
3 plan account balances shall not be suspended.
4 (f) Establishment of Initial Account Balance. If at the
5 time an employee elects to participate in the self-managed
6 plan he or she has rights and credits in the System due to
7 previous participation in the traditional benefit package,
8 the System shall establish for the employee an opening
9 account balance in the self-managed plan, equal to the amount
10 of contribution refund that the employee would be eligible to
11 receive under Section 15-154 if the employee terminated
12 employment on that date and elected a refund of
13 contributions, except that this hypothetical refund shall
14 include interest at the effective rate for the respective
15 years. The System shall transfer assets from the defined
16 benefit retirement program to the self-managed plan, as a tax
17 free transfer in accordance with Internal Revenue Service
18 guidelines, for purposes of funding the employee's opening
19 account balance.
20 (g) No Duplication of Service Credit. Notwithstanding
21 any other provision of this Article, an employee may not
22 purchase or receive service or service credit applicable to
23 any other retirement program administered by the System under
24 this Article for any period during which the employee was a
25 participant in the self-managed plan established under this
26 Section.
27 (e) System Conflict of Interest. In order to preclude
28 any conflict of interest by the System, only insurance and
29 annuity companies and mutual fund companies that are
30 authorized to do business in this State may be approved, in
31 accordance with the procedures of subsection (d), to
32 participate in this program and offer investment options for
33 program participants.
34 (f) Account Balance Transfers. Employees who are
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1 participating in the program must be allowed to transfer
2 their account balances from the investment options offered by
3 one of the companies selected by the employer to the
4 investment options offered by another company so selected,
5 subject to applicable contractual provisions.
6 (g) Participation. Any eligible employee may elect to
7 participate in the optional retirement program offered by the
8 employer under subsection (c). The election must be made in
9 writing and in the manner prescribed by the System. A
10 currently eligible employee must make this election within
11 one year after the effective date of the employer's optional
12 retirement program. A newly eligible employee must make this
13 election within 60 days after becoming an eligible employee.
14 A person may make the one-time irrevocable election
15 authorized under this Section or the election authorized
16 under Section 15-154(a-1), but may not make both elections.
17 The employer shall not remit contributions on behalf of a
18 newly eligible employee to the State Universities Retirement
19 System until the 60-day period has run unless an election by
20 the employee has been made earlier. Any eligible employee
21 interested in electing the optional retirement program
22 provided under this Section must be given a consultation with
23 the State Universities Retirement System before making that
24 election.
25 Participation in the optional retirement program shall
26 begin on the first day of the first pay period following the
27 date of election, but no earlier than January 1, 1998. The
28 employee's participation in any other retirement program
29 administered by the System under this Article shall terminate
30 on the date that participation in the optional retirement
31 program begins, and the employee shall thereby be deemed to
32 have elected to receive a refund of contributions as provided
33 in Section 15-154, except that such deemed refund shall
34 include interest at the effective rate for the respective
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1 years, and except that any funds which would have been
2 received shall instead be transferred directly to the
3 optional retirement program as a tax free transfer in
4 accordance with Internal Revenue Service guidelines.
5 Notwithstanding any other provision of this Code, an
6 employee may not purchase or receive service or service
7 credit applicable to any other retirement program
8 administered by the System under this Article for any period
9 during which the employee was a participant in the optional
10 retirement program established under this Section.
11 An employee who has elected to participate in the
12 optional retirement program under this Section must continue
13 participation while employed in an eligible position, and may
14 not participate in any other retirement program administered
15 by the System under this Article while employed by that
16 employer, unless the optional retirement program is
17 terminated in accordance with subsection (i).
18 Participation in the optional retirement program under
19 this Section shall constitute membership in the State
20 Universities Retirement System, although a participant under
21 this Section shall not be entitled to receive any benefits
22 under any other provisions of Article 15 or of Article 20.
23 An employee who receives a disability benefit or a retirement
24 benefit under this Section or an employee who receives a lump
25 sum distribution from a mutual fund company under this
26 Section and uses the lump sum to purchase an annuity shall be
27 considered an employee or an annuitant under Article 15 for
28 purposes of the State Employees Group Insurance Act of 1971.
29 Participation in the optional retirement program under this
30 Section creates a contractual relationship with respect to
31 the investment of the employee's account balance between the
32 employee and the company providing the investment options for
33 the employee's account balance. Participation does not
34 create a contractual relationship between the employee and
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1 the System or between the employee and his or her employer.
2 (h) Contributions. The self-managed plan shall be
3 funded by contributions from employees participating in the
4 self-managed plan and employer contributions as provided in
5 this Section.
6 The contribution rate for employees participating in the
7 self-managed plan optional retirement program under this
8 Section shall be equal to the employee contribution rate for
9 other participants in the System, as provided in Section
10 15-157. This required contribution shall may be made as an
11 "employer pick-up" under Section 414(h) of the Internal
12 Revenue Code of 1986 or any successor Section thereof. Any
13 employee participating in the System's traditional benefit
14 package prior to his or her election System or who elects to
15 participate in the self-managed plan optional retirement
16 program shall continue to have the employer pick up "pick-up"
17 the contributions required under Section 15-157 contribution.
18 However, the amounts picked up after the election of the
19 self-managed plan optional retirement program shall be
20 remitted to and treated as assets of the self-managed the
21 optional retirement plan. In no event shall an employee have
22 an option of receiving these amounts in cash. Employees may
23 make additional contributions to the self-managed plan in
24 accordance with procedures prescribed by the System, to the
25 extent permitted under rules prescribed by the System.
26 The program shall provide for employer contributions to
27 be credited to each self-managed plan participant at a rate
28 of no more than 7.6% of the participating employee's salary,
29 less the amount used by the System to provide disability
30 benefits for the employee. The amounts so credited shall be
31 paid into the participant's self-managed plan accounts in a
32 manner to be prescribed by the System.
33 An amount of employer contribution, not exceeding 1% of
34 the participating employee's salary, shall be used for the
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1 purpose of providing the disability benefits of the System to
2 the employee. Prior to the beginning of each plan year under
3 the self-managed plan, the Board of Trustees shall determine,
4 as a percentage of salary, the amount of employer
5 contributions to be allocated during that plan year for
6 providing disability benefits for employees in the
7 self-managed plan.
8 The optional retirement program shall be funded by
9 contributions from employees participating in the program and
10 employer contributions as required by the plan. The plan
11 shall be funded in a manner consistent with the requirements
12 of Internal Revenue Code Section 412, and regulations
13 promulgated thereunder, as that Section applies to money
14 purchase plans.
15 The State of Illinois shall make contributions by
16 appropriations to the System of the employer contributions
17 required for employees who participate in the self-managed
18 plan optional retirement program under this Section. The
19 amount required shall be certified by the Board of Trustees
20 of the System and paid by the State in accordance with
21 Section 15-165. The System shall not be obligated to remit
22 the required employer contributions to any of the insurance
23 and annuity companies, and mutual fund companies, banks,
24 trust companies, financial institutions, or other sponsors of
25 any of the funding vehicles offered under the self-managed
26 plan participating in the optional retirement program under
27 subsection (d) until it has received the required employer
28 contributions from the State. In the event of a deficiency
29 in the amount of State contributions, the System shall
30 implement those procedures described in subsection (c) of
31 Section 15-165 to obtain the required funding from the
32 General Revenue Fund.
33 The contributions and interest thereon, and any benefits
34 based upon them, shall be treated as provided in the funding
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1 vehicles for this plan. An amount of up to 1% of each
2 participating employee's salary shall be taken from the
3 employer contribution to the optional retirement program and
4 shall be contributed, on the employee's behalf, to a plan
5 which the System offers to provide for disability benefits.
6 (i) Termination. The self-managed plan An optional
7 retirement program authorized under this Section may be
8 terminated by the System employer, subject to the terms of
9 any relevant contracts, and the System employer shall have no
10 obligation to reestablish the self-managed plan an optional
11 retirement program under this Section. This Section does not
12 create a right to continued participation in any self-managed
13 plan optional retirement program set up by the System an
14 employer under this Section. If the self-managed plan an
15 optional retirement program is terminated, the participants
16 shall have the right to participate in one of the other
17 retirement programs offered by the System and receive service
18 credit in such other retirement program for any years of
19 employment following the termination.
20 (j) Vesting; Withdrawal; Return to Service. A
21 participant in the self-managed plan becomes vested in the
22 employer contributions credited to his or her accounts in the
23 self-managed plan on the earliest to occur of the following:
24 (1) completion of 5 years of service with an employer
25 described in Section 15-106; (2) the death of the
26 participating employee while employed by an employer
27 described in Section 15-106, if the participant has completed
28 at least 1 1/2 years of service; or (3) the participant's
29 election to retire and apply the reciprocal provisions of
30 Article 20 of this Code.
31 A participant in the self-managed plan who receives a
32 distribution of his or her vested amounts from the
33 self-managed plan upon or after termination of employment
34 shall forfeit all service credit and accrued rights in the
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1 System; if subsequently re-employed, the participant shall be
2 considered a new employee. If a former participant again
3 becomes a participating employee (or becomes employed by a
4 participating system under Article 20 of this Code) and
5 continues as such for at least 2 years, all such rights,
6 service credits, and previous status as a participant shall
7 be restored upon repayment of the amount of the distribution,
8 without interest. Employer contributions shall be vested
9 after five years of employment.
10 (k) Benefit amounts. If an employee who is vested in
11 employer contributions terminates employment prior to
12 completing five years of service, the employee shall be
13 entitled to a benefit in accordance with the terms of the
14 employer's retirement plan which is based on the account
15 values accumulation value attributable to both employer and
16 employee the employee's contributions and any investment
17 return thereon.
18 If an employee who is not vested in employer
19 contributions terminates employment, the employee shall be
20 entitled to a benefit based solely on the account values
21 Benefits for employees who terminate with at least five years
22 of service shall be in accordance with the terms of the
23 optional retirement plan and based on the accumulation value
24 attributable to both the employer and the employee's
25 contributions and any investment return thereon, and the
26 employer contributions and any investment return thereon
27 shall be forfeited. Any employer contributions which are
28 forfeited shall be held in escrow by the company investing
29 those contributions and shall be used as directed by the
30 System for future allocations of to reduce the next premium
31 payment due from the employer contributions or for the
32 restoration of amounts previously forfeited by former
33 participants who again become participating employees.
34 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97.)
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1 (40 ILCS 5/15-158.3)
2 Sec. 15-158.3. Reports on cost reduction; effect on
3 retirement at any age with 30 years of service.
4 (a) On or before November 15, 2001 and on or before
5 November 15th of each year thereafter, the Board shall have
6 the System's actuary prepare a report showing, on a fiscal
7 year by fiscal year basis, the actual rate of participation
8 in the self-managed plan optional retirement program
9 authorized by Section 15-158.2, (i) by employees of the
10 System's covered higher educational institutions who were
11 hired on or after the implementation date of the self-managed
12 plan optional retirement program and (ii) by other System
13 participants.
14 The actuary's report must also quantify the extent to
15 which employee optional retirement plan participation has
16 reduced the State's required contributions to the System,
17 expressed both in dollars and as a percentage of covered
18 payroll, in relation to what the State's contributions to the
19 System would have been (1) if the self-managed plan optional
20 retirement program had not been implemented, and (2) if 45%
21 of employees of the System's covered higher educational
22 institutions who were hired on or after the implementation
23 date of the self-managed plan optional retirement program had
24 elected to participate in the self-managed plan optional
25 retirement program and 10% of other System participants had
26 transferred to the self-managed plan optional retirement
27 program following its implementation.
28 (b) On or before November 15th of 2001 and on or before
29 November 15th of each year thereafter, the Illinois Board of
30 Higher Education, in conjunction with the Bureau of the
31 Budget, shall prepare a report showing, on a fiscal year by
32 fiscal year basis, the amount by which the costs associated
33 with compensable sick leave have been reduced as a result of
34 the termination of compensable sick leave accrual on and
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1 after January 1, 1998 by employees of higher education
2 institutions who are participants in the System.
3 (c) On or before November 15 of 2001 and on or before
4 November 15th of each year thereafter, the Department of
5 Central Management Services shall prepare a report showing,
6 on a fiscal year by fiscal year basis, the amount by which
7 the State's cost for health insurance coverage under the
8 State Employees Group Insurance Act of 1971 for retirees of
9 the State's universities and their survivors has declined as
10 a result of requiring some of those retirees and survivors to
11 contribute to the cost of their basic health insurance.
12 These year-by-year reductions in cost must be quantified both
13 in dollars and as a level percentage of payroll covered by
14 the System.
15 (d) The reports required under subsections (a), (b), and
16 (c) shall be disseminated to the Board, the Pension Laws
17 Commission, the Illinois Economic and Fiscal Commission, the
18 Illinois Board of Higher Education, and the Governor.
19 (e) The reports required under subsections (a), (b), and
20 (c) shall be taken into account by the Pension Laws
21 Commission in making any recommendation to extend by
22 legislation beyond December 31, 2002 the provision that
23 allows a System participant to retire at any age with 30 or
24 more years of service as authorized in Section 15-135. If
25 that provision is extended beyond December 31, 2002, and if
26 the most recent report under subsection (a) indicates that
27 actual State contributions to the System for the period
28 during which the self-managed plan optional retirement
29 program has been in operation have exceeded the projected
30 State contributions under the assumptions in clause (2) of
31 subsection (a), then any extension of the provision beyond
32 December 31, 2002 must require that the System's higher
33 educational institutions and agencies cover any funding
34 deficiency through an annual payment to the System out of
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1 appropriate resources of their own.
2 (Source: P.A. 90-9, eff. 7-1-97.)
3 (40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
4 Sec. 15-165. To certify amounts and submit vouchers.
5 (a) The Board shall certify to the Governor on or before
6 November 15 of each year the appropriation required from
7 State funds for the purposes of this System for the following
8 fiscal year. The certification shall include a copy of the
9 actuarial recommendations upon which it is based.
10 (b) The Board shall certify to the State Comptroller or
11 employer, as the case may be, from time to time, by its
12 president and secretary, with its seal attached, the amounts
13 payable to the System from the various funds.
14 (c) Beginning in State fiscal year 1996, on or as soon
15 as possible after the 15th day of each month the Board shall
16 submit vouchers for payment of State contributions to the
17 System, in a total monthly amount of one-twelfth of the
18 required annual State contribution certified under subsection
19 (a). These vouchers shall be paid by the State Comptroller
20 and Treasurer by warrants drawn on the funds appropriated to
21 the System for that fiscal year.
22 If in any month the amount remaining unexpended from all
23 other appropriations to the System for the applicable fiscal
24 year (including the appropriations to the System under
25 Section 8.12 of the State Finance Act and Section 1 of the
26 State Pension Funds Continuing Appropriation Act) is less
27 than the amount lawfully vouchered under this Section, the
28 difference shall be paid from the General Revenue Fund under
29 the continuing appropriation authority provided in Section
30 1.1 of the State Pension Funds Continuing Appropriation Act.
31 (d) So long as the payments received are the full amount
32 lawfully vouchered under this Section, payments received by
33 the System under this Section shall be applied first toward
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1 the employer contribution to the self-managed plan optional
2 retirement program established under Section 15-158.2.
3 Payments shall be applied second toward the employer's
4 portion of the normal costs of the System, as defined in
5 subsection (f) of Section 15-155. The balance shall be
6 applied toward the unfunded actuarial liabilities of the
7 System.
8 (e) In the event that the System does not receive, as a
9 result of legislative enactment or otherwise, payments
10 sufficient to fully fund the employer contribution to the
11 self-managed plan optional retirement program established
12 under Section 15-158.2 and to fully fund that portion of the
13 employer's portion of the normal costs of the System, as
14 calculated in accordance with Section 15-155(a-1), then any
15 payments received shall be applied proportionately to the
16 optional retirement program established under Section
17 15-158.2 and to the employer's portion of the normal costs of
18 the System, as calculated in accordance with Section
19 15-155(a-1).
20 (Source: P.A. 90-448, eff. 8-16-97.)
21 (40 ILCS 5/15-167) (from Ch. 108 1/2, par. 15-167)
22 Sec. 15-167. To invest money. To invest the funds of
23 the system, subject to the requirements and restrictions set
24 forth in Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111,
25 1-114, and 1-115, and 15-158.2(d) of this Code and to invest
26 in real estate acquired by purchase, gift, condemnation or
27 otherwise, and any office building or buildings existing or
28 to be constructed thereon, including any additions thereto or
29 expansions thereof, for the use of the system. The board may
30 lease surplus space in any of the buildings and use rental
31 proceeds for operation, maintenance, improving, expanding and
32 furnishing of the buildings or for any other lawful system
33 purpose.
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1 No bank or savings and loan association shall receive
2 investment funds as permitted by this Section, unless it has
3 complied with the requirements established pursuant to
4 Section 6 of "An Act relating to certain investments of
5 public funds by public agencies", approved July 23, 1943, as
6 now or hereafter amended. The limitations set forth in such
7 Section 6 shall be applicable only at the time of investment
8 and shall not require the liquidation of any investment at
9 any time.
10 The board shall have the authority to enter into such
11 agreements and to execute such documents as it determines to
12 be necessary to complete any investment transaction.
13 All investments shall be clearly held and accounted for
14 to indicate ownership by the board. The board may direct the
15 registration of securities in its own name or in the name of
16 a nominee created for the express purpose of registration of
17 securities by a national or state bank or trust company
18 authorized to conduct a trust business in the State of
19 Illinois.
20 Investments shall be carried at cost or at a value
21 determined in accordance with generally accepted accounting
22 principles and accounting procedures approved by the Board.
23 All additions to assets from income, interest, and
24 dividends from investments shall be used to pay benefits,
25 operating and administrative expenses of the system, debt
26 service, including any redemption premium, on any bonds
27 issued by the board, expenses incurred or deposits required
28 in connection with such bonds, and such other costs as may be
29 provided in accordance with this Article.
30 (Source: P.A. 90-19, eff. 6-20-97.)
31 Section 90. The State Mandates Act is amended by adding
32 Section 8.22 as follows:
-51- LRB9011087EGfg
1 (30 ILCS 805/8.22 new)
2 Sec. 8.22. Exempt mandate. Notwithstanding Sections 6
3 and 8 of this Act, no reimbursement by the State is required
4 for the implementation of any mandate created by this
5 amendatory Act of 1998.
6 Section 99. Effective date. This Act takes effect upon
7 becoming law.