State of Illinois
91st General Assembly
Legislation

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[ Senate Amendment 002 ]

91_HB1583sam001

 










                                           LRB9101658EGfgam01

 1                    AMENDMENT TO HOUSE BILL 1583

 2        AMENDMENT NO.     .  Amend House Bill 1583  by  replacing
 3    the title with the following:
 4        "AN ACT in relation to public employee benefits."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section 5.  The State Employees Group Insurance  Act  of
 8    1971 is amended by changing Section 6.10 as follows:

 9        (5 ILCS 375/6.10)
10        Sec. 6.10.  Contributions to the Community College Health
11    Insurance Security Fund.
12        (a)  Beginning  January 1, 1999, every active contributor
13    of the  State  Universities  Retirement  System  (established
14    under  Article  15 of the Illinois Pension Code) who (1) is a
15    full-time employee of a  community  college  district  (other
16    than  a  community college district subject to Article VII of
17    the Public  Community  College  Act)  or  an  association  of
18    community  college  boards  and  (2)  is  not  an employee as
19    defined in Section 3 of this  Act  shall  make  contributions
20    toward  the  cost of community college annuitant and survivor
21    health benefits at the rate of 0.50% of salary.
 
                            -2-            LRB9101658EGfgam01
 1        These contributions shall be deducted by the employer and
 2    paid to the State Universities Retirement System  as  service
 3    agent for the Department of Central Management Services.  The
 4    System   may  use  the  same  processes  for  collecting  the
 5    contributions required by this subsection  that  it  uses  to
 6    collect the contributions received from those employees under
 7    Section 15-157 of the Illinois Pension Code.  An employer may
 8    agree to pick up or pay the contributions required under this
 9    subsection  on  behalf  of  the  employee; such contributions
10    shall be deemed to have been paid by the employee.
11        A  person  required  to  make  contributions  under  this
12    subsection (a) who purchases optional  service  credit  under
13    Article  15  of  the  Illinois Pension Code must also pay the
14    contribution required under this subsection (a) with  respect
15    to  that  optional service credit.  This contribution must be
16    received by the System before that optional service credit is
17    granted.
18        The State Universities Retirement System  shall  promptly
19    deposit  all  moneys collected under this subsection (a) into
20    the Community College Health Insurance Security Fund  created
21    in  Section 6.9 of this Act.  The moneys collected under this
22    Section shall be used only for  the  purposes  authorized  in
23    Section  6.9  of  this  Act and shall not be considered to be
24    assets  of  the   State   Universities   Retirement   System.
25    Contributions made under this Section are not transferable to
26    other  pension  funds  or  retirement  systems  and  are  not
27    refundable upon termination of service.
28        (b)  Beginning  January  1, 1999, every community college
29    district (other than a community college district subject  to
30    Article   VII   of  the  Public  Community  College  Act)  or
31    association of community college boards that is  an  employer
32    under   the   State   Universities  Retirement  System  shall
33    contribute toward the cost of the  community  college  health
34    benefits  provided  under  Section  6.9 of this Act an amount
 
                            -3-            LRB9101658EGfgam01
 1    equal to 0.50% of the salary paid to its full-time  employees
 2    who  participate  in the State Universities Retirement System
 3    and are not members as defined in Section 3 of this Act.
 4        These contributions shall be paid by the employer to  the
 5    State Universities Retirement System as service agent for the
 6    Department  of  Central  Management Services.  The System may
 7    use the  same  processes  for  collecting  the  contributions
 8    required  by  this  subsection  that  it  uses to collect the
 9    contributions received from  those  employers  under  Section
10    15-155 of the Illinois Pension Code.
11        The  State  Universities Retirement System shall promptly
12    deposit all moneys collected under this subsection  (b)  into
13    the  Community College Health Insurance Security Fund created
14    in Section 6.9 of this Act.  The moneys collected under  this
15    Section  shall  be  used  only for the purposes authorized in
16    Section 6.9 of this Act and shall not  be  considered  to  be
17    assets   of   the   State   Universities  Retirement  System.
18    Contributions made under this Section are not transferable to
19    other  pension  funds  or  retirement  systems  and  are  not
20    refundable upon termination of service.
21        (c)  On or before November 15 of each year, the Board  of
22    Trustees  of  the  State Universities Retirement System shall
23    certify to the Governor, the Director of  Central  Management
24    Services, and the State Comptroller its estimate of the total
25    amount  of  contributions  to be paid under subsection (a) of
26    this Section for the next  fiscal  year.   The  certification
27    shall  include  a  detailed  explanation  of  the methods and
28    information that the  Board  relied  upon  in  preparing  its
29    estimate.   As  soon  as possible after the effective date of
30    this Section, the Board shall submit its estimate for  fiscal
31    year 1999.
32        (d)  Beginning  in  fiscal year 1999, on the first day of
33    each month, or as soon thereafter as may  be  practical,  the
34    State Treasurer and the State Comptroller shall transfer from
 
                            -4-            LRB9101658EGfgam01
 1    the  General  Revenue  Fund  to  the Community College Health
 2    Insurance  Security  Fund   1/12   of   the   annual   amount
 3    appropriated  for  that  fiscal year to the State Comptroller
 4    for deposit  into  the  Community  College  Health  Insurance
 5    Security  Fund  under  Section 1.4 of the State Pension Funds
 6    Continuing Appropriation Act.
 7        (e)  Except where otherwise specified  in  this  Section,
 8    the  definitions  that  apply  to  Article 15 of the Illinois
 9    Pension Code apply to this Section.
10    (Source: P.A. 90-497, eff. 8-18-97.)

11        Section 10.  The Illinois  Pension  Code  is  amended  by
12    changing  Sections  1-113.2,  1-116,  2-121,  2-121.1, 3-110,
13    7-139, 7-141, 7-141.1, 7-145.1, 7-157, 7-164,  7-166,  7-167,
14    7-184,  7-211,  8-125,  8-139,  8-153,  8-171,  8-244, 9-149,
15    9-194, 11-124,  11-134.2,  11-148,  11-167,  11-181,  11-182,
16    11-223,  13-303,  13-309,  13-310,  13-311,  13-314,  13-603,
17    14-118,  14-120,  14-128,  14-130,  15-107,  15-111,  15-112,
18    15-120,  15-134.5,  15-136.4, 15-139, 15-140, 15-141, 15-142,
19    15-144, 15-145, 15-154,  15-158.2,  15-181,  16-133,  16-135,
20    16-136.4,  16-138,  16-140, 16-143, 16-149.4, 16-184, 17-106,
21    17-117,  17-133,  17-150,  18-128,  20-121,  20-123,  20-124,
22    20-125, and 20-131 and  adding  Sections  1-120,  7-224,  and
23    15-132.2 as follows:

24        (40 ILCS 5/1-113.2)
25        Sec.  1-113.2.   List  of  permitted  investments for all
26    Article 3 or 4 pension funds.  Any pension  fund  established
27    under Article 3 or 4 may invest in the following items:
28        (1)  Interest  bearing  direct  obligations of the United
29    States of America.
30        (2)  Interest bearing obligations to the extent that they
31    are fully guaranteed or insured as to  payment  of  principal
32    and interest by the United States of America.
 
                            -5-            LRB9101658EGfgam01
 1        (3)  Interest  bearing bonds, notes, debentures, or other
 2    similar obligations of  agencies  of  the  United  States  of
 3    America.   For the purposes of this Section, "agencies of the
 4    United States of America" includes: (i) the Federal  National
 5    Mortgage   Association   and   the   Student  Loan  Marketing
 6    Association; (ii) federal land  banks,  federal  intermediate
 7    credit banks, federal farm credit banks, and any other entity
 8    authorized  to  issue  direct  debt obligations of the United
 9    States of America under  the  Farm  Credit  Act  of  1971  or
10    amendments to that Act; (iii) federal home loan banks and the
11    Federal  Home  Loan Mortgage Corporation; and (iv) any agency
12    created by Act of Congress that is authorized to issue direct
13    debt obligations of the United States of America.
14        (4)  Interest bearing savings accounts or certificates of
15    deposit, issued by federally chartered banks or  savings  and
16    loan  associations,  to  the  extent  that  the  deposits are
17    insured by  agencies  or  instrumentalities  of  the  federal
18    government.
19        (5)  Interest bearing savings accounts or certificates of
20    deposit,  issued  by  State  of  Illinois  chartered banks or
21    savings  and  loan  associations,  to  the  extent  that  the
22    deposits are insured by agencies or instrumentalities of  the
23    federal government.
24        (6)  Investments in credit unions, to the extent that the
25    investments  are  insured by agencies or instrumentalities of
26    the federal government.
27        (7)  Interest bearing bonds of the State of Illinois.
28        (8)  Pooled interest  bearing  accounts  managed  by  the
29    Illinois  Public  Treasurer's  Investment  Pool in accordance
30    with the Deposit of State Moneys  Act  and  interest  bearing
31    funds  or pooled accounts managed, operated, and administered
32    by banks, subsidiaries of  banks,  or  subsidiaries  of  bank
33    holding companies in accordance with the laws of the State of
34    Illinois.
 
                            -6-            LRB9101658EGfgam01
 1        (9)  Interest  bearing bonds or tax anticipation warrants
 2    of any county, township,  or  municipal  corporation  of  the
 3    State of Illinois.
 4        (10)  Direct  obligations of the State of Israel, subject
 5    to the conditions and limitations of item  (5.1)  of  Section
 6    1-113.
 7        (11)  Money  market  mutual  funds  managed by investment
 8    companies that are registered under  the  federal  Investment
 9    Company  Act  of 1940 and the Illinois Securities Law of 1953
10    and  are  diversified,   open-ended   management   investment
11    companies;  provided  that  the portfolio of the money market
12    mutual fund is limited to the following:
13             (i)  bonds,  notes,  certificates  of  indebtedness,
14        treasury bills, or other securities that  are  guaranteed
15        by  the  full  faith  and  credit of the United States of
16        America as to principal and interest;
17             (ii)  bonds, notes,  debentures,  or  other  similar
18        obligations  of  the  United  States  of  America  or its
19        agencies; and
20             (iii)  short  term   obligations   of   corporations
21        organized  in  the  United  States  with assets exceeding
22        $400,000,000, provided that (A) the obligations mature no
23        later than 180 days from the date of purchase, (B) at the
24        time of purchase, the obligations are rated by at least 2
25        standard national rating  services  at  one  of  their  3
26        highest  classifications, and (C) the obligations held by
27        the mutual fund do not exceed 10%  of  the  corporation's
28        outstanding obligations.
29        (12)  General   accounts   of  life  insurance  companies
30    authorized to transact business in Illinois.
31        (13)  Any combination of the following, not to exceed 10%
32    of the pension fund's net assets:
33             (i)  separate accounts  that  are  managed  by  life
34        insurance  companies  authorized  to transact business in
 
                            -7-            LRB9101658EGfgam01
 1        Illinois and  are  comprised  of  diversified  portfolios
 2        consisting of common or preferred stocks, bonds, or money
 3        market instruments; and
 4             (ii)  separate   accounts   that   are   managed  by
 5        insurance companies authorized to  transact  business  in
 6        Illinois,  and are comprised of real estate or loans upon
 7        real estate secured by first or second mortgages; and
 8             (iii)  mutual  funds   that   meet   the   following
 9        requirements:
10                  (A)  the   mutual   fund   is   managed  by  an
11             investment company as defined and  registered  under
12             the  federal  Investment  Company  Act  of  1940 and
13             registered under  the  Illinois  Securities  Law  of
14             1953;
15                  (B)  the  mutual fund has been in operation for
16             at least 5 years;
17                  (C)  the mutual fund has total  net  assets  of
18             $250 million or more; and
19                  (D)  the    mutual   fund   is   comprised   of
20             diversified  portfolios  of  common   or   preferred
21             stocks, bonds, or money market instruments.
22    (Source: P.A. 90-507, eff. 8-22-97.)

23        (40 ILCS 5/1-116) (from Ch. 108 1/2, par. 1-116)
24        Sec. 1-116.  Federal contribution and benefit limitations
25    limitation.
26        (a)  This  Section  applies  to  all  pension  funds  and
27    retirement systems established under this Code.
28        (a-5)  All   pension   funds   and   retirement   systems
29    established  under this Code shall comply with the applicable
30    contribution and benefit limitations imposed by  Section  415
31    of  the  U.S. Internal Revenue Code of 1986 for tax qualified
32    plans under Section 401(a) of that Code.
33        (b)  If  any  benefit  payable  by  a  pension  fund   or
 
                            -8-            LRB9101658EGfgam01
 1    retirement   system  subject  to  this  Section  exceeds  the
 2    applicable benefit limits set by  Section  415  of  the  U.S.
 3    Internal  Revenue  Code of 1986 for tax qualified plans under
 4    Section 401(a) of that Code, the excess shall be payable only
 5    from an excess benefit fund established under this Section in
 6    accordance with federal law.
 7        (c)  An excess benefit fund shall be established  by  any
 8    pension  fund  or  retirement  system subject to this Section
 9    that has any  member  eligible  to  receive  a  benefit  that
10    exceeds  the  applicable benefit limits set by Section 415 of
11    the U.S. Internal Revenue Code  of  1986  for  tax  qualified
12    plans  under  Section  401(a) of that Code.  Amounts shall be
13    credited to the excess benefit fund, and payments for  excess
14    benefits  made  from  the  excess  benefit  fund, in a manner
15    consistent with the applicable federal law.
16        (d)  For purposes of  matters  relating  to  the  benefit
17    limits  set  by Section 415 of the U.S. Internal Revenue Code
18    of 1986, the limitation year may be defined by each  affected
19    pension fund or retirement system for that fund or system.
20    (Source: P.A. 90-19, eff. 6-20-97.)

21        (40 ILCS 5/1-120 new)
22        Sec. 1-120. Payment to trust.
23        (a)  If  a  person is a minor or has been determined by a
24    court to be under a legal disability, any benefits payable to
25    that person under this Code may be paid to the trustee  of  a
26    trust  created  for the sole benefit of that person while the
27    person is living, if the trustee of the trust has advised the
28    board of trustees of the pension fund or retirement system in
29    writing that the benefits will be held or used for  the  sole
30    benefit  of  that  person.   The  pension  fund or retirement
31    system shall not be required to determine the validity of the
32    trust  or  of  any  of  the  terms   of   the   trust.    The
33    representation  of  the  trustee  that  the  trust  meets the
 
                            -9-            LRB9101658EGfgam01
 1    requirements of this Section shall be conclusive  as  to  the
 2    pension  fund  or  retirement system.  Payment of benefits to
 3    the trust shall be an absolute discharge of the pension  fund
 4    or  retirement system's liability with respect to the amounts
 5    so paid.
 6        (b)  For purposes  of  this  Section,  "minor"  means  an
 7    unmarried person under the age of 18.
 8        (c)  This  Section is not a limitation on any other power
 9    to pay benefits to or on behalf of a minor  or  person  under
10    legal  disability  that  is  granted under this Code or other
11    applicable law.

12        (40 ILCS 5/2-121) (from Ch. 108 1/2, par. 2-121)
13        Sec. 2-121.  Survivor's annuity - conditions for payment.
14        (a)  A survivor's annuity shall be payable to a surviving
15    spouse or eligible child (1) upon the death in service  of  a
16    participant  with  at least 2 years of service credit, or (2)
17    upon the death of an annuitant in  receipt  of  a  retirement
18    annuity,   or  (3)  upon  the  death  of  a  participant  who
19    terminated service with at least 4 years of service credit.
20        The change in this subsection (a) made by this amendatory
21    Act of 1995 applies to survivors of participants who  die  on
22    or  after  December 1, 1994, without regard to whether or not
23    the participant was in service on or after the effective date
24    of this amendatory Act of 1995.
25        (b)  To be  eligible  for  the  survivor's  annuity,  the
26    spouse  and  the  participant  or  annuitant  must  have been
27    married  for  a  continuous  period  of  at  least  one  year
28    immediately preceding the date of death, but  need  not  have
29    been married on the day of the participant's last termination
30    of  service,  regardless of whether such termination occurred
31    prior to the effective date of this amendatory Act of 1985.
32        (c)  The annuity shall be payable beginning on  the  date
33    of a participant's death, or the first of the month following
 
                            -10-           LRB9101658EGfgam01
 1    an  annuitant's  death, if the spouse is then age 50 or over,
 2    or beginning at age 50 if the spouse is then  under  age  50.
 3    If  an  eligible  child  or  children  of  the participant or
 4    annuitant (or a child or  children  of  the  eligible  spouse
 5    meeting  the  criteria of item (1), (2), or (3) of subsection
 6    (d) of this Section) also survive, and the child or  children
 7    are  under the care of the eligible spouse, the annuity shall
 8    begin as of the date of a participant's death, or  the  first
 9    of  the  month following an annuitant's death, without regard
10    to the spouse's age.
11        The change to this subsection made by this amendatory Act
12    of 1998 (relating to children of an eligible spouse)  applies
13    to the eligible spouse of a participant or annuitant who dies
14    on  or  after  the  effective  date  of  this amendatory Act,
15    without regard to whether the participant or annuitant is  in
16    service on or after that effective date.
17        (d)  For   the  purposes  of  this  Section  and  Section
18    2-121.1, "eligible child"  means  a  child  of  the  deceased
19    participant   or  annuitant  who  is  at  least  one  of  the
20    following:
21             (1)  unmarried and under the age of 18;
22             (2)  unmarried, a full-time student, and  under  the
23        age of 22;
24             (3)  dependent  by  reason  of  physical  or  mental
25        disability.
26        The  inclusion  of unmarried students under age 22 in the
27    calculation of survivor's annuities by this amendatory Act of
28    1991 shall apply to all eligible students  beginning  January
29    1,  1992,  without regard to whether the deceased participant
30    or annuitant was in service on or after the effective date of
31    this amendatory Act of 1991.
32        Adopted children shall have the same status  as  children
33    of  the participant or annuitant, but only if the proceedings
34    for adoption are commenced at least one  year  prior  to  the
 
                            -11-           LRB9101658EGfgam01
 1    date of the participant's or annuitant's death.
 2        (e)  Remarriage of a surviving spouse prior to attainment
 3    of  age  55  shall  disqualify  the surviving spouse from the
 4    receipt of a survivor's annuity,  if  the  remarriage  occurs
 5    before  the effective date of this amendatory Act of the 91st
 6    General Assembly.
 7        The changes made to this subsection  by  this  amendatory
 8    Act  of  the  91st General Assembly (pertaining to remarriage
 9    prior to age 55) apply without regard to whether the deceased
10    participant or annuitant was  in  service  on  or  after  the
11    effective date of this amendatory Act.
12    (Source: P.A. 89-136, eff. 7-14-95; 90-766, eff. 8-14-98.)

13        (40 ILCS 5/2-121.1) (from Ch. 108 1/2, par. 2-121.1)
14        Sec. 2-121.1.  Survivor's annuity - amount.
15        (a)  A  surviving  spouse shall be entitled to 66 2/3% of
16    the amount of retirement annuity to which the participant  or
17    annuitant  was  entitled on the date of death, without regard
18    to whether the participant had attained age 55 prior  to  his
19    or  her death, subject to a minimum payment of 10% of salary.
20    If a surviving spouse, regardless of age, has in his  or  her
21    care  at  the date of death any eligible child or children of
22    the participant, the survivor's annuity shall be the  greater
23    of  the  following:  (1)  66 2/3% of the amount of retirement
24    annuity to which the participant or annuitant was entitled on
25    the date of death, or (2) 30%  of  the  participant's  salary
26    increased  by  10%  of  salary on account of each such child,
27    subject to a total  payment  for  the  surviving  spouse  and
28    children  of 50% of salary.  If eligible children survive but
29    there is no surviving spouse,  or  if  the  surviving  spouse
30    remarries or dies or becomes disqualified by remarriage while
31    eligible  children  survive,  each  eligible  child  shall be
32    entitled to an annuity of 20% of salary, subject to a maximum
33    total payment for all such children of 50% of salary.
 
                            -12-           LRB9101658EGfgam01
 1        However,  the  survivor's  annuity  payable  under   this
 2    Section  shall  not  be  less  than  100%  of  the  amount of
 3    retirement annuity to which the participant or annuitant  was
 4    entitled  on the date of death, if he or she is survived by a
 5    dependent disabled child.
 6        The salary to be  used  for  determining  these  benefits
 7    shall  be  the  salary  used  for  determining  the amount of
 8    retirement annuity as provided in Section 2-119.01.
 9        (b)  Upon  the  death  of   a   participant   after   the
10    termination  of  service  or  upon death of an annuitant, the
11    maximum total payment to  a  surviving  spouse  and  eligible
12    children,  or  to  eligible  children  alone  if  there is no
13    surviving spouse, shall be 75% of the retirement  annuity  to
14    which the participant or annuitant was entitled, unless there
15    is a dependent disabled child among the survivors.
16        (c)  When  a  child  ceases  to be an eligible child, the
17    annuity to that child, or to the surviving spouse on  account
18    of that child, shall thereupon cease, and the annuity payable
19    to  the  surviving spouse or other eligible children shall be
20    recalculated if necessary.
21        Upon the ineligibility of the last  eligible  child,  the
22    annuity  shall  immediately revert to the amount payable upon
23    death of a participant or annuitant who  leaves  no  eligible
24    children.   If the surviving spouse is then under age 50, the
25    annuity as revised shall be deferred until the attainment  of
26    age 50.
27        (d)  Beginning  January 1, 1990, every survivor's annuity
28    shall be increased (1) on each  January  1  occurring  on  or
29    after  the commencement of the annuity if the deceased member
30    died while receiving a retirement annuity, or  (2)  in  other
31    cases,  on  each  January  1  occurring on or after the first
32    anniversary of the commencement of the annuity, by an  amount
33    equal  to  3% of the current amount of the annuity, including
34    any previous increases under  this  Article.  Such  increases
 
                            -13-           LRB9101658EGfgam01
 1    shall apply without regard to whether the deceased member was
 2    in  service on or after the effective date of this amendatory
 3    Act of 1991, but shall not accrue for  any  period  prior  to
 4    January 1, 1990.
 5        (e)  Notwithstanding any other provision of this Article,
 6    beginning  January  1,  1990,  the minimum survivor's annuity
 7    payable to any person who is entitled to receive a survivor's
 8    annuity under this Article shall be $300 per  month,  without
 9    regard  to  whether  or  not  the deceased participant was in
10    service on the effective date of this amendatory Act of 1989.
11        (f)  In the case of  a  proportional  survivor's  annuity
12    arising under the Retirement Systems Reciprocal Act where the
13    amount  payable by the System on January 1, 1993 is less than
14    $300 per month, the amount payable by  the  System  shall  be
15    increased beginning on that date by a monthly amount equal to
16    $2  for  each  full  year  that has expired since the annuity
17    began.
18    (Source: P.A. 86-273; 86-1488; 87-794; 87-1265.)

19        (40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
20        Sec. 3-110.  Creditable service.
21        (a)  "Creditable service" is the time served by a  police
22    officer  as  a member of a regularly constituted police force
23    of a municipality. In computing creditable service  furloughs
24    without  pay  exceeding 30 days shall not be counted, but all
25    leaves of absence for  illness  or  accident,  regardless  of
26    length,  and all periods of disability retirement for which a
27    police officer has received no  disability  pension  payments
28    under this Article shall be counted.
29        (b)  Creditable  service  includes all periods of service
30    in the military, naval or air forces  of  the  United  States
31    entered   upon   while   an   active   police  officer  of  a
32    municipality, provided that upon  applying  for  a  permanent
33    pension,  and  in accordance with the rules of the board, the
 
                            -14-           LRB9101658EGfgam01
 1    police officer pays into the  fund  the  amount  the  officer
 2    would  have  contributed  if  he  or  she  had been a regular
 3    contributor during  such  period,  to  the  extent  that  the
 4    municipality  which  the  police  officer served has not made
 5    such contributions in the officer's behalf.  The total amount
 6    of such creditable service shall not exceed 5  years,  except
 7    that  any  police officer who on July 1, 1973 had more than 5
 8    years of such creditable  service  shall  receive  the  total
 9    amount thereof.
10        (c)  Creditable service also includes service rendered by
11    a  police  officer  while  on  leave of absence from a police
12    department to serve as an executive of an organization  whose
13    membership  consists  of  members  of  a  police  department,
14    subject  to the following conditions:  (i) the police officer
15    is a participant of a fund  established  under  this  Article
16    with  at  least 10 years of service as a police officer; (ii)
17    the police officer received no credit for such service  under
18    any  other  retirement  system,  pension fund, or annuity and
19    benefit fund included in this Code;  (iii)  pursuant  to  the
20    rules  of  the  board the police officer pays to the fund the
21    amount he or she would have contributed had the officer  been
22    an  active  member  of  the  police  department; and (iv) the
23    organization pays a contribution equal to the  municipality's
24    normal cost for that period of service.
25        (d)(1)  Creditable   service  also  includes  periods  of
26    service originally established in another police pension fund
27    under this Article or in the Fund established under Article 7
28    of this Code  for  which  (i)  the  contributions  have  been
29    transferred under Section 3-110.7 or Section 7-139.9 and (ii)
30    any  additional  contribution required under paragraph (2) of
31    this subsection has been paid in full in accordance with  the
32    requirements of this subsection (d).
33        (2)  If the board of the pension fund to which creditable
34    service  and  related  contributions  are  transferred  under
 
                            -15-           LRB9101658EGfgam01
 1    Section   3-110.7  or  7-139.9  determines  that  the  amount
 2    transferred is less than the true cost to the pension fund of
 3    allowing that creditable service to be established,  then  in
 4    order to establish that creditable service the police officer
 5    must  pay  to  the  pension  fund,  within the payment period
 6    specified in paragraph (3) of this subsection, an  additional
 7    contribution  equal  to  the difference, as determined by the
 8    board in accordance with the  rules  and  procedures  adopted
 9    under paragraph (6) of this subsection.
10        (3)  Except  as provided in paragraph (4), the additional
11    contribution must be paid to the board  (i)  within  5  years
12    from  the date of the transfer of contributions under Section
13    3-110.7  or  7-139.9  and  (ii)  before  the  police  officer
14    terminates   service   with   the   fund.    The   additional
15    contribution may be paid in a lump sum or in accordance  with
16    a schedule of installment payments authorized by the board.
17        (4)  If the police officer dies in service before payment
18    in full has been made and before the expiration of the 5-year
19    payment period, the surviving spouse of the officer may elect
20    to  pay  the  unpaid  amount on the officer's behalf within 6
21    months after the date of death, in which case the  creditable
22    service  shall  be  granted  as  though  the  deceased police
23    officer had paid the remaining balance on the day before  the
24    date of death.
25        (5)  If  the  additional contribution is not paid in full
26    within the required time, the creditable service shall not be
27    granted and the police officer (or  the  officer's  surviving
28    spouse  or  estate)  shall be entitled to receive a refund of
29    (i) any partial payment of the additional  contribution  that
30    has  been  made by the police officer and (ii) those portions
31    of  the  amounts  transferred  under  subdivision  (a)(1)  of
32    Section 3-110.7 or subdivisions (a)(1) and (a)(3) of  Section
33    7-139.9  that  represent  employee  contributions paid by the
34    police officer (but not the  accumulated  interest  on  those
 
                            -16-           LRB9101658EGfgam01
 1    contributions) and interest paid by the police officer to the
 2    prior  pension  fund in order to reinstate service terminated
 3    by acceptance of a refund.
 4        At the time of paying a refund under this item  (5),  the
 5    pension  fund shall also repay to the pension fund from which
 6    the contributions were transferred under Section  3-110.7  or
 7    7-139.9  the  amount originally transferred under subdivision
 8    (a)(2) of that Section, plus interest at the rate of  6%  per
 9    year,  compounded  annually,  from  the  date of the original
10    transfer to the date of repayment.   Amounts  repaid  to  the
11    Article  7 fund under this provision shall be credited to the
12    appropriate municipality.
13        Transferred credit that is not granted due to failure  to
14    pay  the  additional contribution within the required time is
15    lost; it may not be transferred to another pension  fund  and
16    may  not  be reinstated in the pension fund from which it was
17    transferred.
18        (6)  The Public Employee Pension  Fund  Division  of  the
19    Department of Insurance shall establish by rule the manner of
20    making  the  calculation required under paragraph (2) of this
21    subsection, taking into  account  the  appropriate  actuarial
22    assumptions;  the  police  officer's service, age, and salary
23    history; the level of funding of the pension  fund  to  which
24    the credits are being transferred; and any other factors that
25    the  Division  determines  to  be  relevant.   The  rules may
26    require that all calculations made  under  paragraph  (2)  be
27    reported   to  the  Division  by  the  board  performing  the
28    calculation, together with documentation  of  the  creditable
29    service  to  be transferred, the amounts of contributions and
30    interest  to  be  transferred,  the  manner  in   which   the
31    calculation  was performed, the numbers relied upon in making
32    the calculation, the results  of  the  calculation,  and  any
33    other information the Division may deem useful.
34    (Source: P.A. 89-52, eff. 6-30-95; 90-460, eff. 8-17-97.)
 
                            -17-           LRB9101658EGfgam01
 1        (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
 2        Sec. 7-139.  Credits and creditable service to employees.
 3        (a)  Each participating employee shall be granted credits
 4    and  creditable  service,  for  purposes  of  determining the
 5    amount of any annuity or benefit to which he or a beneficiary
 6    is entitled, as follows:
 7             1.  For prior service: Each  participating  employee
 8        who  is  an  employee  of a participating municipality or
 9        participating instrumentality on the effective date shall
10        be granted  creditable  service,  but  no  credits  under
11        paragraph  2 of this subsection (a), for periods of prior
12        service for which credit has not been received under  any
13        other pension fund or retirement system established under
14        this Code, as follows:
15             If  the  effective  date  of  participation  for the
16        participating     municipality      or      participating
17        instrumentality   is   on  or  before  January  1,  1998,
18        creditable service shall be granted for the entire period
19        of prior service with that employer without any  employee
20        contribution.
21             If  the  effective  date  of  participation  for the
22        participating     municipality      or      participating
23        instrumentality  is  after  January  1,  1998, creditable
24        service shall be granted for the last 20% of  the  period
25        of  prior  service with that employer, but no more than 5
26        years,   without   any    employee    contribution.     A
27        participating  employee  may establish creditable service
28        for the remainder of the period  of  prior  service  with
29        that  employer  by  making  an  application  in  writing,
30        accompanied  by payment of an employee contribution in an
31        amount determined by the  Fund,  based  on  the  employee
32        contribution  rates  in effect at the time of application
33        for the creditable service and the employee's salary rate
34        on the effective date of participation for that employer,
 
                            -18-           LRB9101658EGfgam01
 1        plus interest at the effective rate from the date of  the
 2        prior  service  to  the date of payment.  Application for
 3        this creditable service may be made at any time while the
 4        employee is still in service.
 5             Any person who has withdrawn from the service  of  a
 6        participating      municipality      or     participating
 7        instrumentality prior to the effective date, who reenters
 8        the service of the  same  municipality  or  participating
 9        instrumentality  after  the  effective date and becomes a
10        participating employee is entitled to creditable  service
11        for   prior   service   as  otherwise  provided  in  this
12        subdivision (a)(1) only if he or she renders 2  years  of
13        service  as  a participating employee after the effective
14        date.  Application for such service must be made while in
15        a participating status.  The salary rate to  be  used  in
16        the calculation of the required employee contribution, if
17        any,  shall  be the employee's salary rate at the time of
18        first reentering service  with  the  employer  after  the
19        employer's effective date of participation.
20             2.  For current service, each participating employee
21        shall be credited with:
22                  a.  Additional credits of amounts equal to each
23             payment  of  additional  contributions received from
24             him  under  Section  7-173,  as  of  the  date   the
25             corresponding payment of earnings is payable to him.
26                  b.  Normal  credits  of  amounts  equal to each
27             payment of normal contributions received  from  him,
28             as of the date the corresponding payment of earnings
29             is payable to him, and normal contributions made for
30             the  purpose  of  establishing  out-of-state service
31             credits as permitted under the conditions set  forth
32             in paragraph 6 of this subsection (a).
33                  c.  Municipality  credits in an amount equal to
34             1.4  times  the   normal   credits,   except   those
 
                            -19-           LRB9101658EGfgam01
 1             established  by  out-of-state service credits, as of
 2             the date of computation  of  any  benefit  if  these
 3             credits would increase the benefit.
 4                  d.  Survivor  credits  equal to each payment of
 5             survivor    contributions    received    from    the
 6             participating  employee   as   of   the   date   the
 7             corresponding  payment  of  earnings is payable, and
 8             survivor  contributions  made  for  the  purpose  of
 9             establishing out-of-state service credits.
10             3.  For periods of temporary and total and permanent
11        disability benefits, each employee  receiving  disability
12        benefits  shall  be  granted  creditable  service for the
13        period during  which  disability  benefits  are  payable.
14        Normal  and  survivor  credits,  based  upon  the rate of
15        earnings applied for disability benefits, shall  also  be
16        granted  if such credits would result in a higher benefit
17        to any such employee or his beneficiary.
18             4.  For authorized leave of absence without pay:   A
19        participating  employee  shall  be  granted  credits  and
20        creditable  service  for  periods  of authorized leave of
21        absence without pay under the following conditions:
22                  a.  An application for credits  and  creditable
23             service is submitted to the board while the employee
24             is  in  a  status of active employment, and within 2
25             years after termination  of  the  leave  of  absence
26             period  for which credits and creditable service are
27             sought.
28                  b.  Not  more  than  12  complete   months   of
29             creditable  service  for authorized leave of absence
30             without  pay  shall  be  counted  for  purposes   of
31             determining any benefits payable under this Article.
32                  c.  Credits  and  creditable  service  shall be
33             granted for leave of absence only if such  leave  is
34             approved  by the governing body of the municipality,
 
                            -20-           LRB9101658EGfgam01
 1             including approval of the estimated cost thereof  to
 2             the  municipality  as  determined  by  the fund, and
 3             employee  contributions,  plus   interest   at   the
 4             effective rate applicable for each year from the end
 5             of the period of leave to date of payment, have been
 6             paid  to  the fund in accordance with Section 7-173.
 7             The  contributions  shall  be  computed   upon   the
 8             assumption  earnings  continued during the period of
 9             leave at the rate in effect when the leave began.
10                  d.  Benefits under the provisions  of  Sections
11             7-141,  7-146,  7-150 and 7-163 shall become payable
12             to employees on  authorized  leave  of  absence,  or
13             their  designated beneficiary, only if such leave of
14             absence is creditable hereunder, and if the employee
15             has at least one year of  creditable  service  other
16             than  the service granted for leave of absence.  Any
17             employee contributions due may be deducted from  any
18             benefits payable.
19                  e.  No  credits  or creditable service shall be
20             allowed for leave of absence without pay during  any
21             period of prior service.
22             5.  For  military  service:  The governing body of a
23        municipality or participating instrumentality  may  elect
24        to  allow  creditable  service to participating employees
25        who leave their employment to serve in the  armed  forces
26        of  the  United  States  for all periods of such service,
27        provided that the person  returns  to  active  employment
28        within 90 days after completion of full time active duty,
29        but  no  creditable  service shall be allowed such person
30        for any period that can be used in the computation  of  a
31        pension  or  any other pay or benefit, other than pay for
32        active duty, for service  in  any  branch  of  the  armed
33        forces  of  the  United  States.   If  necessary  to  the
34        computation  of  any  benefit,  the board shall establish
 
                            -21-           LRB9101658EGfgam01
 1        municipality credits for  participating  employees  under
 2        this  paragraph  on  the  assumption  that  the  employee
 3        received  earnings  at  the  rate received at the time he
 4        left  the  employment  to  enter  the  armed  forces.   A
 5        participating employee in the armed forces shall  not  be
 6        considered  an employee during such period of service and
 7        no  additional  death  and  no  disability  benefits  are
 8        payable for death or disability during such period.
 9             Any participating employee who left  his  employment
10        with  a  municipality or participating instrumentality to
11        serve in the armed forces of the United  States  and  who
12        again  became  a  participating  employee  within 90 days
13        after completion of full time active duty by entering the
14        service of  a  different  municipality  or  participating
15        instrumentality,  which  has  elected to allow creditable
16        service  for  periods  of  military  service  under   the
17        preceding  paragraph,  shall  also  be allowed creditable
18        service for his period of military service  on  the  same
19        terms  that  would  apply if he had been employed, before
20        entering  military  service,  by  the   municipality   or
21        instrumentality  which  employed  him  after  he left the
22        military  service  and  the  employer  costs  arising  in
23        relation to such grant of  creditable  service  shall  be
24        charged   to   and   paid   by   that   municipality   or
25        instrumentality.
26             Notwithstanding  the  foregoing,  any  participating
27        employee  shall  be  entitled  to  creditable  service as
28        required by any federal  law  relating  to  re-employment
29        rights  of  persons who served in the United States Armed
30        Services.  Such creditable service shall be granted  upon
31        payment  by the member of an amount equal to the employee
32        contributions which would  have  been  required  had  the
33        employee  continued  in  service  at  the  same  rate  of
34        earnings  during the military leave period, plus interest
 
                            -22-           LRB9101658EGfgam01
 1        at the effective rate.
 2             5.1.  In  addition   to   any   creditable   service
 3        established  under  paragraph  5  of this subsection (a),
 4        creditable service may be granted for up to 24 months  of
 5        service in the armed forces of the United States.
 6             In  order to receive creditable service for military
 7        service  under  this  paragraph  5.1,   a   participating
 8        employee  must  (1)  apply  to  the  Fund  in writing and
 9        provide  evidence  of  the  military  service   that   is
10        satisfactory   to  the  Board;  (2)  obtain  the  written
11        approval  of  the  current   employer;   and   (3)   make
12        contributions  to  the  Fund  equal  to  (i) the employee
13        contributions that  would  have  been  required  had  the
14        service  been  rendered  as a member, plus (ii) an amount
15        determined by the board to be  equal  to  the  employer's
16        normal  cost  of  the  benefits accrued for that military
17        service, plus (iii) interest on items (i) and  (ii)  from
18        the  date  of first membership in the Fund to the date of
19        payment.  If payment is made during  the  6-month  period
20        that  begins  3  months  after the effective date of this
21        amendatory Act of 1997, the required interest shall be at
22        the  rate  of  2.5%  per   year,   compounded   annually;
23        otherwise,  the  required interest shall be calculated at
24        the regular interest rate.
25             6.  For  out-of-state  service:  Creditable  service
26        shall be granted for service rendered to an  out-of-state
27        local  governmental  body under the following conditions:
28        The  employee  had  participated  and   has   irrevocably
29        forfeited  all  rights  to  benefits  in the out-of-state
30        public employees pension system; the  governing  body  of
31        his   participating   municipality   or   instrumentality
32        authorizes  the  employee  to establish such service; the
33        employee  has  2  years   current   service   with   this
34        municipality   or   participating   instrumentality;  the
 
                            -23-           LRB9101658EGfgam01
 1        employee makes a payment of contributions, which shall be
 2        computed at 8% (normal) plus 2% (survivor)  times  length
 3        of  service  purchased times the average rate of earnings
 4        for the first 2 years of service with the municipality or
 5        participating  instrumentality   whose   governing   body
 6        authorizes  the  service established plus interest at the
 7        effective rate on the date such credits are  established,
 8        payable from the date the employee completes the required
 9        2  years  of  current  service to date of payment.  In no
10        case shall more than 120 months of creditable service  be
11        granted under this provision.
12             7.  For retroactive service:  Any employee who could
13        have   but  did  not  elect  to  become  a  participating
14        employee, or who should have been a  participant  in  the
15        Municipal  Public  Utilities  Annuity  and  Benefit  Fund
16        before  that  fund was superseded, may receive creditable
17        service for the  period  of  service  not  to  exceed  50
18        months;  however, a current or former county board member
19        may establish credit under this paragraph 7 for more than
20        50 months of service as a member of the county  board  if
21        the  excess  over  50 months is approved by resolution of
22        the affected county board  filed  with  the  Fund  before
23        January 1, 1999.
24             Any  employee  who is a participating employee on or
25        after September  24,  1981  and  who  was  excluded  from
26        participation  by  the age restrictions removed by Public
27        Act 82-596 may receive creditable service for the period,
28        on  or  after  January  1,  1979,  excluded  by  the  age
29        restriction and, in addition, if the  governing  body  of
30        the    participating    municipality   or   participating
31        instrumentality elects to allow  creditable  service  for
32        all  employees  excluded  by the age restriction prior to
33        January 1, 1979, for service during the period  prior  to
34        that  date excluded by the age restriction.  Any employee
 
                            -24-           LRB9101658EGfgam01
 1        who  was  excluded  from   participation   by   the   age
 2        restriction removed by Public Act 82-596 and who is not a
 3        participating employee on or after September 24, 1981 may
 4        receive  creditable  service for service after January 1,
 5        1979. Creditable service under this  paragraph  shall  be
 6        granted  upon payment of the employee contributions which
 7        would  have  been  required  had  he  participated,  with
 8        interest at the effective rate for each year from the end
 9        of the period of service established to date of payment.
10             8.  For   accumulated   unused   sick   leave:     A
11        participating  employee  who is applying for a retirement
12        annuity shall be entitled to creditable service for  that
13        portion  of  the employee's accumulated unused sick leave
14        for which payment is not received, as follows:
15                  a.  Sick leave days shall be limited  to  those
16             accumulated under a sick leave plan established by a
17             participating    municipality    or    participating
18             instrumentality  which is available to all employees
19             or a class of employees.
20                  b.  Only sick leave  days  accumulated  with  a
21             participating    municipality    or    participating
22             instrumentality  with  which  the  employee  was  in
23             service  within 60 days of the effective date of his
24             retirement  annuity  shall  be  credited;   If   the
25             employee  was in service with more than one employer
26             during this period only the sick leave days with the
27             employer with which the employee  has  the  greatest
28             number   of   unpaid   sick   leave  days  shall  be
29             considered.
30                  c.  The creditable  service  granted  shall  be
31             considered  solely  for the purpose of computing the
32             amount of the retirement annuity and  shall  not  be
33             used   to   establish  any  minimum  service  period
34             required by any provision of  the  Illinois  Pension
 
                            -25-           LRB9101658EGfgam01
 1             Code,  the effective date of the retirement annuity,
 2             or the final rate of earnings.
 3                  d.  The creditable service shall be at the rate
 4             of 1/20 of a month for each full sick day,  provided
 5             that  no  more  than 12 months may be credited under
 6             this subdivision 8.
 7                  e.  Employee   contributions   shall   not   be
 8             required   for   creditable   service   under   this
 9             subdivision 8.
10                  f.  Each   participating    municipality    and
11             participating instrumentality with which an employee
12             has  service within 60 days of the effective date of
13             his retirement annuity shall certify  to  the  board
14             the  number  of  accumulated  unpaid sick leave days
15             credited to the employee at the time of  termination
16             of service.
17             9.  For  service  transferred  from  another system:
18        Credits and  creditable  service  shall  be  granted  for
19        service  under  Article 3, 4, 5, 14 or 16 of this Act, to
20        any active member of  this  Fund,  and  to  any  inactive
21        member  who  has  been a county sheriff, upon transfer of
22        such credits pursuant to Section 3-110.3, 4-108.3, 5-235,
23        14-105.6 or 16-131.4, and payment by the  member  of  the
24        amount   by   which   (1)   the   employer  and  employee
25        contributions that would have been  required  if  he  had
26        participated  in this Fund as a sheriff's law enforcement
27        employee during the period  for  which  credit  is  being
28        transferred,  plus interest thereon at the effective rate
29        for each year,  compounded annually,  from  the  date  of
30        termination  of  the  service  for  which credit is being
31        transferred to the  date  of  payment,  exceeds  (2)  the
32        amount actually transferred to the Fund. Such transferred
33        service  shall be deemed to be service as a sheriff's law
34        enforcement employee for the purposes of Section 7-142.1.
 
                            -26-           LRB9101658EGfgam01
 1        (b)  Creditable service - amount:
 2             1.  One month of creditable service shall be allowed
 3        for each month for which a  participating  employee  made
 4        contributions  as  required  under  Section 7-173, or for
 5        which creditable service is otherwise granted  hereunder.
 6        Not  more  than  1 month of service shall be credited and
 7        counted for 1 calendar month, and not more than 1 year of
 8        service shall be credited and counted  for  any  calendar
 9        year.   A  calendar month means a nominal month beginning
10        on the first day thereof, and a  calendar  year  means  a
11        year beginning January 1 and ending December 31.
12             2.  A  seasonal employee shall be given 12 months of
13        creditable service if he renders the number of months  of
14        service  normally  required by the position in a 12-month
15        period and he remains in service for the entire  12-month
16        period.   Otherwise  a  fractional year of service in the
17        number of months of service rendered shall be credited.
18             3.  An  intermittent   employee   shall   be   given
19        creditable  service  for  only  those  months  in which a
20        contribution is made under Section 7-173.
21        (c)  No  application  for  correction   of   credits   or
22    creditable  service  shall  be  considered  unless  the board
23    receives  an  application  for  correction  while   (1)   the
24    applicant   is   a   participating  employee  and  in  active
25    employment   with    a    participating    municipality    or
26    instrumentality,  or  (2)  while  the  applicant  is actively
27    participating in a pension fund or retirement system which is
28    a  participating  system   under   the   Retirement   Systems
29    Reciprocal  Act.  A participating employee or other applicant
30    shall not be entitled to credits or creditable service unless
31    the required employee contributions are made in a lump sum or
32    in installments made in accordance with board rule.
33        (d)  Upon the granting of a retirement, surviving  spouse
34    or child annuity, a death benefit or a separation benefit, on
 
                            -27-           LRB9101658EGfgam01
 1    account  of  any employee, all individual accumulated credits
 2    shall thereupon terminate. Upon the withdrawal of  additional
 3    contributions, the credits applicable thereto shall thereupon
 4    terminate.   Terminated  credits  shall  not  be  applied  to
 5    increase  the benefits any remaining employee would otherwise
 6    receive under this Article.
 7    (Source: P.A. 90-448, eff. 8-16-97.)

 8        (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
 9        Sec.   7-141.    Retirement   annuities   -   Conditions.
10    Retirement annuities shall  be  payable  as  hereinafter  set
11    forth:
12        (a)  A  participating  employee who, regardless of cause,
13    is  separated  from  the   service   of   all   participating
14    municipalities     and    instrumentalities    thereof    and
15    participating  instrumentalities  shall  be  entitled  to   a
16    retirement annuity provided:
17        1.  He is at least age 55, or in the case of a person who
18    is  eligible  to  have  his  annuity calculated under Section
19    7-142.1, he is at least age 50;
20        2.  He is  (i)  an  employee  who  was  employed  by  any
21    participating  municipality  or participating instrumentality
22    which  had  not  elected  to  exclude  persons  employed   in
23    positions  normally  requiring  performance  of duty for less
24    than 1000 hours per  year  or  was  employed  in  a  position
25    normally  requiring performance of duty for 600 hours or more
26    per  year  prior  to  such  election  by  any   participating
27    municipality or participating instrumentality included in and
28    subject  to  this  Article on or before the effective date of
29    this amendatory Act of 1981 which made such election  and  is
30    not entitled to receive earnings for employment in a position
31    normally  requiring performance of duty for 600 hours or more
32    per   year   for   any   participating    municipality    and
33    instrumentalities  thereof and participating instrumentality;
 
                            -28-           LRB9101658EGfgam01
 1    or (ii) an employee who was employed only by a  participating
 2    municipality    or    participating    instrumentality,    or
 3    participating       municipalities      or      participating
 4    instrumentalities, which have elected to exclude  persons  in
 5    positions  normally  requiring  performance  of duty for less
 6    than 1000 hours per year after the  effective  date  of  such
 7    exclusion  or  which  are  included  under and subject to the
 8    Article after the effective date of this  amendatory  Act  of
 9    1981  and elects to exclude persons in such positions, and is
10    not entitled to receive earnings for employment in a position
11    normally requiring performance of duty for 1000 hours or more
12    per  year   by   such   a   participating   municipality   or
13    participating instrumentality;
14        3.  The  amount of his annuity, before the application of
15    paragraph (b) of Section 7-142 is at least $10 per month;
16        4.  If he first became  a  participating  employee  after
17    December  31, 1961, he has at least 8 years of service.  This
18    service requirement shall  not  apply  to  any  participating
19    employee,  regardless  of  participation date, if the General
20    Assembly terminates the Fund.
21        (b)  Retirement annuities shall be payable:
22        1.  As provided in Section 7-119;
23        2.  Except as provided in item 3,  upon  receipt  by  the
24    fund  of  a  written application by the board.  The effective
25    date may be not more than one year prior to the date  of  the
26    receipt by the fund of the application;
27        3.  Upon  attainment  of age 70 1/2 if (i) the member (i)
28    has not submitted an application for the  annuity,  (ii)  the
29    member  has  at  least  8  years  of service credit and is no
30    longer in service, and  (ii)  is  otherwise  entitled  to  an
31    annuity  under  this  Article  (iii) the pension amount is at
32    least $30 per month, and (iv) the Fund is able to locate  the
33    member;
34        4.  To  the beneficiary of the deceased annuitant for the
 
                            -29-           LRB9101658EGfgam01
 1    unpaid amount accrued to date of death, if any.
 2    (Source: P.A. 87-740.)

 3        (40 ILCS 5/7-141.1)
 4        Sec. 7-141.1. Early retirement incentive.
 5        (a)  The General Assembly finds and declares that:
 6             (1)  Units of local government across the State have
 7        been functioning under a financial crisis.
 8             (2)  This financial crisis is expected to continue.
 9             (3)  Units  of  local  government  must  depend   on
10        additional sources of revenue and, when those sources are
11        not forthcoming, must establish cost-saving programs.
12             (4)  An    early   retirement   incentive   designed
13        specifically to target highly-paid senior employees could
14        result in significant annual cost savings.
15             (5)  The early retirement incentive should  be  made
16        available  only  to  those units of local government that
17        determine that an early retirement incentive is in  their
18        best interest.
19             (6)  A  unit  of local government adopting a program
20        of early retirement  incentives  under  this  Section  is
21        encouraged to implement personnel procedures to prohibit,
22        for at least 5 years, the rehiring (whether on payroll or
23        by  independent  contract) of employees who receive early
24        retirement incentives.
25             (7)  A unit of local government adopting  a  program
26        of early retirement incentives under this Section is also
27        encouraged   to  replace  as  few  of  the  participating
28        employees as possible and to hire  replacement  employees
29        for  salaries  totaling  no  more  than  80% of the total
30        salaries formerly paid to the employees  who  participate
31        in the early retirement program.
32        It  is  the  primary purpose of this Section to encourage
33    units of local government that can realize true cost savings,
 
                            -30-           LRB9101658EGfgam01
 1    or have determined that an early  retirement  program  is  in
 2    their   best  interest,  to  implement  an  early  retirement
 3    program.
 4        (b)  Until the effective date of this amendatory  Act  of
 5    1997,  this  Section does not apply to any employer that is a
 6    city, village, or incorporated town, nor to the employees  of
 7    any  such  employer.  Beginning on the effective date of this
 8    amendatory Act of 1997,  any  employer  under  this  Article,
 9    including   an   employer   that   is  a  city,  village,  or
10    incorporated  town,   may  establish  an   early   retirement
11    incentive  program for its employees under this Section.  The
12    decision of a city, village, or incorporated town to consider
13    or establish an early  retirement  program  is  at  the  sole
14    discretion  of  that city, village, or incorporated town, and
15    nothing in this amendatory Act of 1997  limits  or  otherwise
16    diminishes   this  discretion.   Nothing  contained  in  this
17    Section shall be construed to require  a  city,  village,  or
18    incorporated  town  to  establish an early retirement program
19    and no city, village, or incorporated town may  be  compelled
20    to implement such a program.
21        The  benefits provided in this Section are available only
22    to members employed by  a  participating  employer  that  has
23    filed  with  the  Board of the Fund a resolution or ordinance
24    expressly providing for the creation of an  early  retirement
25    incentive  program  under  this Section for its employees and
26    specifying  the  effective  date  of  the  early   retirement
27    incentive  program.   Subject to the limitation in subsection
28    (h),  an  employer  may  adopt  a  resolution  or   ordinance
29    providing a program of early retirement incentives under this
30    Section at any time.
31        The resolution or ordinance shall be in substantially the
32    following form:

33                   RESOLUTION (ORDINANCE) NO. ....
34             A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
 
                            -31-           LRB9101658EGfgam01
 1             RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
 2              IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
 3        WHEREAS,  Section  7-141.1  of  the Illinois Pension Code
 4    provides that a participating employer may elect to adopt  an
 5    early  retirement  incentive  program offered by the Illinois
 6    Municipal  Retirement  Fund  by  adopting  a  resolution   or
 7    ordinance; and
 8        WHEREAS, The goal of adopting an early retirement program
 9    is  to  realize  a  substantial savings in personnel costs by
10    offering early retirement incentives to  employees  who  have
11    accumulated many years of service credit; and
12        WHEREAS,  Implementation  of the early retirement program
13    will provide a budgeting tool to aid in  controlling  payroll
14    costs; and
15        WHEREAS, The (name of governing body) has determined that
16    the  adoption  of an early retirement incentive program is in
17    the best interests of the (name of  participating  employer);
18    therefore be it
19        RESOLVED  (ORDAINED)  by  the (name of governing body) of
20    (name of participating employer) that:
21        (1)  The (name of  participating  employer)  does  hereby
22    adopt the Illinois Municipal Retirement Fund early retirement
23    incentive  program  as  provided  in  Section  7-141.1 of the
24    Illinois  Pension  Code.   The  early  retirement   incentive
25    program shall take effect on (date).
26        (2)  In  order  to  help  achieve  a true cost savings, a
27    person who  retires  under  the  early  retirement  incentive
28    program  shall  lose  those  incentives  if  he  or she later
29    accepts employment with any IMRF employer in a  position  for
30    which  participation in IMRF is required or is elected by the
31    employee.
32        (3)  In order to utilize an early retirement incentive as
33    a budgeting tool, the (name of participating  employer)  will
34    use  its best efforts either to limit the number of employees
 
                            -32-           LRB9101658EGfgam01
 1    who  replace  the  employees  who  retire  under  the   early
 2    retirement  program  or  to  limit  the  salaries paid to the
 3    employees who replace the  employees  who  retire  under  the
 4    early retirement program.
 5        (4)  The  effective  date  of  each employee's retirement
 6    under this early retirement program shall be set by (name  of
 7    employer)  and shall be no earlier than the effective date of
 8    the program and no later than one year after  that  effective
 9    date;   except   that  the  employee  may  require  that  the
10    retirement date set by the employer be no later than the June
11    30 next occurring after the effective date of the program and
12    no earlier than the date upon which  the  employee  qualifies
13    for retirement.
14        (5)  To  be  eligible  for the early retirement incentive
15    under this Section, the employee must have  attained  age  50
16    and  have  at  least 20 years of creditable service by his or
17    her retirement date.
18        (6)  The (clerk  or  secretary)  shall  promptly  file  a
19    certified  copy of this resolution (ordinance) with the Board
20    of Trustees of the Illinois Municipal Retirement Fund.
21    CERTIFICATION
22        I, (name), the (clerk  or  secretary)  of  the  (name  of
23    participating  employer)  of  the  County of (name), State of
24    Illinois, do hereby certify that I am the keeper of the books
25    and records of the (name of employer) and that the  foregoing
26    is  a  true and correct copy of a resolution (ordinance) duly
27    adopted by the (governing body) at a  meeting  duly  convened
28    and held on (date).
29    SEAL
30    (Signature of clerk or secretary)

31        (c)  To  be  eligible  for the benefits provided under an
32    early  retirement  incentive  program  adopted   under   this
33    Section, a member must:
34             (1)  be  a  participating employee of this Fund who,
 
                            -33-           LRB9101658EGfgam01
 1        on the effective date of the program, (i)  is  in  active
 2        payroll status as an employee of a participating employer
 3        that  has filed the required ordinance or resolution with
 4        the Board, (ii) is on layoff status from such a  position
 5        with a right of re-employment or recall to service, (iii)
 6        is on a leave of absence from such a position, or (iv) is
 7        on  disability  but has not been receiving benefits under
 8        Section 7-146 or 7-150 for a period of more than 2  years
 9        from the date of application;
10             (2)  have  never  previously  received  a retirement
11        annuity  under  this  Article  or  under  the  Retirement
12        Systems Reciprocal Act using service  credit  established
13        under this Article;
14             (3)  (blank);  file with the Board within 60 days of
15        the   effective   date  of  the  program  an  application
16        requesting the benefits provided in this Section;
17             (4)  have at least 20 years of creditable service in
18        the Fund by the date of retirement, without  the  use  of
19        any creditable service established under this Section;
20             (5)  have attained age 50 by the date of retirement,
21        without  the  use  of  any age enhancement received under
22        this Section; and
23             (6)  be eligible to  receive  a  retirement  annuity
24        under  this  Article by the date of retirement, for which
25        purpose  the  age  enhancement  and  creditable   service
26        established under this Section may be considered.
27        (d)  The employer shall determine the retirement date for
28    each  employee  participating in the early retirement program
29    adopted under this Section.  The retirement date shall be  no
30    earlier  than  the effective date of the program and no later
31    than one year after that  effective  date,  except  that  the
32    employee  may  require  that  the  retirement date set by the
33    employer be no later than the June 30  next  occurring  after
34    the  effective  date  of  the program and no earlier than the
 
                            -34-           LRB9101658EGfgam01
 1    date upon which the employee qualifies for  retirement.   The
 2    employer  shall give each employee participating in the early
 3    retirement program at least 30 days  written  notice  of  the
 4    employee's  designated  retirement  date, unless the employee
 5    waives this notice requirement.
 6        (e)  An eligible person may establish up to  5  years  of
 7    creditable service under this Section.  In addition, for each
 8    period  of creditable service established under this Section,
 9    a person shall have his  or  her  age  at  retirement  deemed
10    enhanced by an equivalent period.
11        The creditable service established under this Section may
12    be   used  for  all  purposes  under  this  Article  and  the
13    Retirement Systems Reciprocal Act, except for the computation
14    of final rate of earnings and the determination of  earnings,
15    salary,  or  compensation  under this or any other Article of
16    the Code.
17        The age enhancement established under this Section may be
18    used  for  all  purposes  under   this   Article   (including
19    calculation   of  the  reduction  imposed  under  subdivision
20    (a)1b(iv) of  Section  7-142),   except  for  purposes  of  a
21    reversionary    annuity   under   Section   7-145   and   any
22    distributions required because of age.  The  age  enhancement
23    established  under  this Section may be used in calculating a
24    proportionate  annuity  payable  by  this  Fund   under   the
25    Retirement  Systems  Reciprocal Act, but shall not be used in
26    determining benefits payable under  other  Articles  of  this
27    Code under the Retirement Systems Reciprocal Act.
28        (f)  For  all  creditable  service established under this
29    Section,  the  member  must  pay  to  the  Fund  an  employee
30    contribution consisting  of  4.5%  of  the  member's  highest
31    annual  salary  rate  used  in the determination of the final
32    rate of earnings for retirement  annuity  purposes  for  each
33    year  of  creditable service granted under this Section.  For
34    creditable service established under this Section by a person
 
                            -35-           LRB9101658EGfgam01
 1    who is a sheriff's law  enforcement  employee  to  be  deemed
 2    service as a sheriff's law enforcement employee, the employee
 3    contribution  shall  be at the rate of 6.5% of highest annual
 4    salary per year of creditable service granted.  Contributions
 5    for fractions of a year of service shall be  prorated.    Any
 6    amounts that are disregarded in determining the final rate of
 7    earnings  under subdivision (d)(5) of Section 7-116 (the 125%
 8    rule) shall also be disregarded in determining  the  required
 9    contribution under this subsection (f).
10        The  employee  contribution  shall be paid to the Fund as
11    follows:  If the member is entitled to a lump sum payment for
12    accumulated vacation, sick  leave,  or  personal  leave  upon
13    withdrawal  from  service,  the  employer  shall  deduct  the
14    employee contribution from that lump sum and pay the deducted
15    amount  directly  to  the Fund.  If there is no such lump sum
16    payment or the required employee contribution exceeds the net
17    amount of the lump sum payment,  then  the  remaining  amount
18    due, at the option of the employee, may either be paid to the
19    Fund  before  the  annuity  commences  or  deducted  from the
20    retirement annuity in 24 equal monthly installments.
21        (g)  An annuitant who has received any age enhancement or
22    creditable service under this Section and thereafter  accepts
23    employment  with  or enters into a personal services contract
24    with an employer under this Article thereby forfeits that age
25    enhancement and  creditable  service.   A  person  forfeiting
26    early  retirement  incentives  under this subsection (i) must
27    repay to the Fund that  portion  of  the  retirement  annuity
28    already   received   which   is  attributable  to  the  early
29    retirement incentives that are being  forfeited,  (ii)  shall
30    not be eligible to participate in any future early retirement
31    program  adopted under this Section, and (iii) is entitled to
32    a refund of the employee contribution paid  under  subsection
33    (f).   The Board shall deduct the required repayment from the
34    refund and may  impose  a  reasonable  payment  schedule  for
 
                            -36-           LRB9101658EGfgam01
 1    repaying  the amount, if any, by which the required repayment
 2    exceeds the refund amount.
 3        (h)  The additional  unfunded  liability  accruing  as  a
 4    result  of  the  adoption  of  a  program of early retirement
 5    incentives  under  this  Section  by  an  employer  shall  be
 6    amortized over a period of 10 years beginning on January 1 of
 7    the second calendar year following the calendar year in which
 8    the latest date for beginning to receive a retirement annuity
 9    under the  program  (as  determined  by  the  employer  under
10    subsection  (d)  of  this  Section)  occurs;  except that the
11    employer may provide for a shorter amortization period (of no
12    less than 5 years) by adopting  an  ordinance  or  resolution
13    specifying   the   length  of  the  amortization  period  and
14    submitting a certified copy of the ordinance or resolution to
15    the Fund no later than 6 months after the effective  date  of
16    the  program.  An employer, at its discretion, may accelerate
17    payments to the Fund.
18        An employer may provide more than  one  early  retirement
19    incentive  program  for  its  employees  under  this Section.
20    However, an employer that has provided  an  early  retirement
21    incentive  program  for  its employees under this Section may
22    not provide another early retirement incentive program  under
23    this  Section  until  the  liability arising from the earlier
24    program has been fully paid to the Fund.
25    (Source: P.A. 89-329, eff. 8-17-95; 90-32, eff. 6-27-97.)

26        (40 ILCS 5/7-145.1)
27        Sec. 7-145.1.  Alternative annuity for county officers.
28        (a)  The benefits provided in this  Section  and  Section
29    7-145.2 are available only if the county board has filed with
30    the  Board  of  the  Fund a resolution or ordinance expressly
31    consenting to the availability  of  these  benefits  for  its
32    elected  county  officers.   The  county  board's  consent is
33    irrevocable with respect  to  persons  participating  in  the
 
                            -37-           LRB9101658EGfgam01
 1    program,  but  may  be  revoked  at  any time with respect to
 2    persons who have not paid an additional optional contribution
 3    under this Section before the date of revocation.
 4        An  elected  county  officer  may  elect   to   establish
 5    alternative credits for an alternative annuity by electing in
 6    writing   to   make   additional  optional  contributions  in
 7    accordance with this Section and  procedures  established  by
 8    the  board.  These alternative credits are available only for
 9    periods of service as an elected county officer.  The elected
10    county officer may discontinue making the additional optional
11    contributions by notifying the Fund in writing in  accordance
12    with this Section and procedures established by the board.
13        Additional  optional  contributions  for  the alternative
14    annuity shall be as follows:
15             (1)  For service as an elected county officer  after
16        the  option  is elected, an additional contribution of 3%
17        of salary shall be contributed to the Fund  on  the  same
18        basis  and  under  the  same  conditions as contributions
19        required under Section 7-173.
20             (2)  For service as an elected county officer before
21        the option is elected, an additional contribution  of  3%
22        of  the salary for the applicable period of service, plus
23        interest at the effective rate from the date  of  service
24        to  the  date  of  payment,  plus  any  additional amount
25        required by the county board under  paragraph  (3).   All
26        payments  for  past  service  must be paid in full before
27        credit is given.
28             (3)  With respect to service as  an  elected  county
29        officer  before the option is elected, if payment is made
30        after the county board has filed with the  Board  of  the
31        Fund  a  resolution  or ordinance requiring an additional
32        contribution under this paragraph, then the  contribution
33        required  under  paragraph (2) shall include an amount to
34        be determined by the Fund, equal to the actuarial present
 
                            -38-           LRB9101658EGfgam01
 1        value  of  the  additional  employer  cost   that   would
 2        otherwise  result  from  the  alternative  credits  being
 3        established   for   that   service.    A  county  board's
 4        resolution    or    ordinance    requiring     additional
 5        contributions under this paragraph (3) is irrevocable.
 6        No  additional optional contributions may be made for any
 7    period of  service  for  which  credit  has  been  previously
 8    forfeited  by  acceptance  of  a refund, unless the refund is
 9    repaid in full with interest at the effective rate  from  the
10    date of refund to the date of repayment.
11        (b)  In  lieu of the retirement annuity otherwise payable
12    under this Article, an elected county  officer  who  (1)  has
13    elected  to  participate  in  the  Fund  and  make additional
14    optional contributions in accordance with this  Section,  (2)
15    has  held  and  made  additional  optional contributions with
16    respect to the same elected county  office  for  at  least  8
17    years,  and  (3) has attained age 55 with at least 8 years of
18    service credit (or has attained age 50 with at least 20 years
19    of service as a sheriff's law enforcement employee) may elect
20    to have his retirement annuity computed as  follows:   3%  of
21    the  participant's  salary  for  each of the first 8 years of
22    service credit, plus 4% of that salary for each of the next 4
23    years of service credit, plus 5% of that salary for each year
24    of service credit in excess of 12 years, subject to a maximum
25    of 80% of that salary.
26        This formula applies only to service in an elected county
27    office that the officer held for at least 8 years,  and  only
28    to  service  for which additional optional contributions have
29    been paid under this Section.  If an elected  county  officer
30    qualifies  to  have  this  formula applied to service in more
31    than one elected county office, the qualifying service  shall
32    be  accumulated  for  purposes  of determining the applicable
33    accrual percentages, but the  salary  used  for  each  office
34    shall  be  the separate salary calculated for that office, as
 
                            -39-           LRB9101658EGfgam01
 1    defined in subsection (g).
 2        To the extent that the elected county officer has service
 3    credit that does not qualify for this formula, his retirement
 4    annuity will first be  determined  in  accordance  with  this
 5    formula  with  respect  to  the service to which this formula
 6    applies, and then in accordance with the  remaining  Sections
 7    of  this  Article  with  respect to the service to which this
 8    formula does not apply.
 9        (c)  In lieu of the disability benefits otherwise payable
10    under this Article, an elected county  officer  who  (1)  has
11    elected  to  participate  in  the  Fund,  and  (2) has become
12    permanently disabled  and  as  a  consequence  is  unable  to
13    perform the duties of his office, and (3) was making optional
14    contributions in accordance with this Section at the time the
15    disability  was  incurred,  may elect to receive a disability
16    annuity  calculated  in  accordance  with  the   formula   in
17    subsection  (b).   For  the  purposes  of this subsection, an
18    elected  county  officer  shall  be  considered   permanently
19    disabled  only if:  (i) disability occurs while in service as
20    an elected county officer and is  of  such  a  nature  as  to
21    prevent  him  from  reasonably  performing  the duties of his
22    office at the time; and (ii) the board has received a written
23    certification by at least 2 licensed physicians appointed  by
24    it  stating  that  the  officer  is  disabled  and  that  the
25    disability is likely to be permanent.
26        (d)  Refunds  of  additional optional contributions shall
27    be made on the same basis and under the  same  conditions  as
28    provided  under  Section  7-166,  7-167  and 7-168.  Interest
29    shall be credited at the effective rate on the same basis and
30    under the same conditions as for other contributions.
31        If an elected county officer  fails  to  hold  that  same
32    elected  county  office for at least 8 years, he or she shall
33    be entitled after leaving office to receive a refund  of  the
34    additional  optional  contributions made with respect to that
 
                            -40-           LRB9101658EGfgam01
 1    office, plus interest at the effective rate.
 2        (e)  The  plan  of  optional  alternative  benefits   and
 3    contributions  shall  be available to persons who are elected
 4    county officers and active contributors to  the  Fund  on  or
 5    after  November 15, 1994.  A person who was an elected county
 6    officer and an active contributor to the Fund on November 15,
 7    1994 but is no longer an active contributor may apply to make
 8    additional optional contributions under this Section  at  any
 9    time  within  90  days  after  the  effective  date  of  this
10    amendatory  Act  of  1997; if the person is an annuitant, the
11    resulting increase in annuity shall begin to  accrue  on  the
12    first  day  of  the  month  following  the month in which the
13    required payment is received by the Fund.
14        (f)  For  the  purposes  of  this  Section  and   Section
15    7-145.2,  the  terms  "elected  county  officer" and "elected
16    county office" include, but  are  not  limited  to:  (1)  the
17    county  clerk,  recorder,  treasurer,  coroner,  assessor (if
18    elected), auditor, sheriff, and State's Attorney; members  of
19    the county board; and the clerk of the circuit court; and (2)
20    a  person  who  has  been  appointed  to fill a vacancy in an
21    office that is normally filled by election  on  a  countywide
22    basis, for the duration of his or her service in that office.
23    The  terms  "elected  county  officer"  and  "elected  county
24    office" do not include any officer or office of a county that
25    has  not consented to the availability of benefits under this
26    Section and Section 7-145.2.
27        (g)  For  the  purposes  of  this  Section  and   Section
28    7-145.2,  the  term "salary" means the final rate of earnings
29    for the elected county office held, calculated  in  a  manner
30    consistent  with Section 7-116, but for that office only.  If
31    an elected county officer qualifies to have  the  formula  in
32    subsection  (b)  applied  to service in more than one elected
33    county office, a separate  salary  shall  be  calculated  and
34    applied with respect to each such office.
 
                            -41-           LRB9101658EGfgam01
 1        (h)  The  changes to this Section made by this amendatory
 2    Act of the 91st General Assembly apply to persons  who  first
 3    make  an  additional optional contribution under this Section
 4    on or after the effective date of this amendatory Act.
 5    (Source: P.A. 90-32, eff. 6-27-97; 91-685, eff. 1-26-00.)

 6        (40 ILCS 5/7-157) (from Ch. 108 1/2, par. 7-157)
 7        Sec. 7-157. Surviving  spouse  annuities  -  marriage  to
 8    terminate.   If  a  any  surviving  spouse annuitant marries,
 9    before reaching age 55, the annuity shall be terminated as of
10    the end of the calendar month following the  month  in  which
11    the   marriage  occurs,  unless  the  marriage  occurs  after
12    December 31, 2000.
13    (Source: P.A. 81-618.)

14        (40 ILCS 5/7-164) (from Ch. 108 1/2, par. 7-164)
15        Sec. 7-164.  Death benefits - Amount.  The amount of  the
16    death benefit shall be:
17        1.  Upon  the death of an employee with at least one year
18    of service occurring  while  in  an  employment  relationship
19    (including  employees  drawing  disability  benefits)  with a
20    participating municipality or participating  instrumentality,
21    an amount equal to the sum of:
22             (a)  The  employee's normal, additional and survivor
23        credits, including interest credited thereto through  the
24        end of the preceding calendar year, but excluding credits
25        and interest thereon allowed for periods of disability.
26             (b)  An  amount equal to the employee's annual final
27        rate of earnings. An employee who dies  as  a  result  of
28        injuries connected with his duties shall be considered to
29        have a year of service for purposes of this benefit.
30        2.  Upon  the  death of an employee with less than 1 year
31    of  service  occurring  while   in   the   service   of   any
32    participating  municipality  or  instrumentality,  an  amount
 
                            -42-           LRB9101658EGfgam01
 1    equal  to  the  sum of his accumulated normal, additional and
 2    survivor credits  on  the  date  of  death,  excluding  those
 3    credits  and  interest  thereon  allowed  during  periods  of
 4    disability.
 5        3.  Upon  the death of an employee who has separated from
 6    service and was not entitled to a retirement annuity  on  the
 7    date  of death, an amount equal to the sum of his accumulated
 8    normal, survivor and additional credits on the date of  death
 9    excluding  those  credits and interest thereon allowed during
10    periods of disability.
11        4.  Upon the  death  of  an  employee  in  an  employment
12    relationship, or an employee who has service and was entitled
13    to  a  retirement  annuity  on  the  date  of  death,  when a
14    surviving spouse or child annuity is awarded, $3,000.
15        5.  Upon the death of an employee, who has separated from
16    service and was entitled to a retirement annuity on the  date
17    of  death,  and  no  surviving  spouse  or  child  annuity is
18    awarded, $3,000 plus  an  amount  equal  to  his  accumulated
19    normal, survivor and additional credits on the date of death,
20    excluding  those  credits and interest earned thereon allowed
21    during periods of disability.
22        6.  Upon the death of an employee annuitant, $3,000  and,
23    unless  a  surviving spouse, child or reversionary annuity is
24    payable, the sum of (i) the excess of the normal and survivor
25    credits,  excluding   those   allowed   during   periods   of
26    disability,  which the annuitant had as of the effective date
27    of his annuity over the  total  annuities  paid  pursuant  to
28    paragraph  (a)  1 of Section 7-142 to the date of death, plus
29    (ii) the excess of the additional credits, excluding any such
30    credits used  to  create  a  reversionary  annuity,  used  to
31    provide  the  annuity  granted pursuant to paragraph (a) 2 of
32    Section 7-142 over the total annuity payments  made  pursuant
33    thereto to the time of death.
34        7.  Upon   the   death   of   an  annuitant  receiving  a
 
                            -43-           LRB9101658EGfgam01
 1    reversionary annuity or of a person designated to  receive  a
 2    reversionary annuity prior to the receipt of such annuity the
 3    sum  of  the  additional  credits  of the person creating the
 4    reversionary annuity as of the  effective  date  of  his  own
 5    retirement annuity over the reversionary annuity payments, if
 6    any,  made  prior  to  the date of death of such annuitant or
 7    person designated to receive the reversionary annuity.
 8        8.  Upon  the  death  of   an   annuitant   receiving   a
 9    beneficiary  annuity  which  was  effective before January 1,
10    1986, the excess of the  death  benefit  which  was  used  to
11    provide  the  annuity,  over  the sum of all annuity payments
12    made to the beneficiary.  Upon  the  death  of  an  annuitant
13    receiving  a beneficiary annuity effective January 1, 1986 or
14    thereafter, the sum of (i)  the  excess  of  the  normal  and
15    survivor  credits,  excluding those allowed during periods of
16    disability, which the annuitant had as of the effective  date
17    of  his  annuity  over  the  total annuities paid pursuant to
18    paragraph (c) of Section 7-165, to date of death,  plus  (ii)
19    the  excess  of  the  additional  credits, excluding any such
20    credits used  to  create  a  reversionary  annuity,  used  to
21    provide  the  annuity  granted  pursuant  to paragraph (d) of
22    Section 7-165 over the total annuity payments  made  pursuant
23    thereto to the time of death.
24        9.  Upon  the  marriage  prior to reaching age 55 (except
25    for a surviving spouse who remarries after December 31, 2000)
26    or death of a person receiving a  surviving  spouse  annuity,
27    unless  a child annuity is payable, the sum of (i) the excess
28    of the normal and survivor credits, excluding  those  credits
29    and  interest  thereon  allowed during periods of disability,
30    attributable to the employee at the  effective  date  of  the
31    annuity  or date of death, whichever first occurred, over the
32    total of all annuity payments attributable to paragraph (a) 1
33    of Section 7-142 made to the  employee  or  surviving  spouse
34    plus (ii) the excess of the additional credits, excluding any
 
                            -44-           LRB9101658EGfgam01
 1    such credits used to create a reversionary annuity or used to
 2    provide  the  annuity  attributable  to  paragraph  (a)  2 of
 3    Section 7-142 over the total of such payments.
 4        10.  Upon the marriage, death or attainment of age 18  of
 5    a  child  receiving  a  child  annuity,  if  no  other  child
 6    annuities  are  payable,  the  sum  of  (i) the excess of the
 7    normal and  survivor  credits  excluding  those  credits  and
 8    interest thereon allowed during periods of disability, of the
 9    employee  at  the  effective  date  of the annuity or date of
10    death, whichever  first  occurred,  over  the  total  annuity
11    payments  attributable  to  paragraph  (a) 1 of Section 7-142
12    made to the employee, surviving spouse and children plus (ii)
13    the excess of the  additional  credits,  excluding  any  such
14    credits  used  to  create  a  reversionary  annuity,  used to
15    provide the  annuity  attributable  to  paragraph  (a)  2  of
16    Section  7-142  over  the  total annuity payments made to the
17    employee, surviving spouse and children, pursuant thereto.
18        11.  Upon the death of the participating  employee  whose
19    annuity was suspended upon his return to employment:
20             a.  If  a  surviving  spouse  or  child  annuity  is
21        awarded, $3,000;
22             b.  If  no  surviving  spouse  or  child  annuity is
23        awarded and he had less  than  one  year's  service  upon
24        return,  $3,000  plus  the excess of the normal, survivor
25        and additional credits, including interest  thereon,  but
26        excluding those allowed during a period of disability, at
27        the  effective  date of the suspended annuity, plus those
28        allowed after his return, over all annuity payments  made
29        to the employee;
30             c.  If  no  surviving  spouse  or  child  annuity is
31        awarded and he has one  year  or  more  of  service  upon
32        return,  the higher of (a) the payment under subparagraph
33        b of this paragraph or (b) the payment under paragraph  1
34        of  this  Section,  taking  into  consideration  only the
 
                            -45-           LRB9101658EGfgam01
 1        service and credits allowed after his  return,  plus  the
 2        excess  of  the  normal, survivor and additional credits,
 3        including  interest  thereon,  excluding  those   allowed
 4        during  periods  of  disability, at the effective date of
 5        his suspended annuity over all annuity payments  made  to
 6        the employee.
 7        12.  The  $3,000  death  benefit provided in paragraphs 4
 8    and 6 shall not be payable to beneficiaries  of  persons  who
 9    terminated  service  prior  to  September 8, 1971, unless the
10    payment or agreement for payment provided by Section  7-144.2
11    of this Article is made prior to the date of death.
12        13.  The  increase  in certain death benefits from $1,000
13    to $3,000 provided by this amendatory Act of 1987 shall apply
14    only to deaths occurring on or after January 1, 1988.
15    (Source: P.A. 85-941.)

16        (40 ILCS 5/7-166) (from Ch. 108 1/2, par. 7-166)
17        Sec.   7-166.   Separation   benefits   -    Eligibility.
18    Separation  benefits  shall  be  payable  as  hereinafter set
19    forth:
20        1.  Upon separation from the service of all participating
21    municipalities    and    instrumentalities    thereof     and
22    participating  instrumentalities,  any participating employee
23    upon the termination of his participation as a  participating
24    employee who, on the date of application for such benefit, is
25    not  entitled  to a retirement annuity shall be entitled to a
26    separation benefit;
27        2.  Upon separation from the service of all participating
28    municipalities    and    instrumentalities    thereof     and
29    participating  instrumentalities,  any participating employee
30    upon the termination of his participation as a  participating
31    employee who, on the date of application for such benefit, is
32    entitled  to  a retirement annuity of less than $30 per month
33    for life may elect to take a separation benefit  in  lieu  of
 
                            -46-           LRB9101658EGfgam01
 1    the retirement annuity.
 2    (Source: Laws 1963, p. 161.)

 3        (40 ILCS 5/7-167) (from Ch. 108 1/2, par. 7-167)
 4        Sec.  7-167.  Separation  benefits - Payment.  Separation
 5    benefits shall be paid in the form of a single  cash  sum  as
 6    soon as practicable after receipt by the board of:
 7             1.  a  written  application by the employee for such
 8        benefits; and
 9             2.  written   notice   from   the   last   employing
10        participating municipality or instrumentality thereof  or
11        participating   instrumentality,   certifying  that  such
12        participating  employee  has   separated   from   service
13        terminated his participation.
14    (Source: Laws 1963, p. 161.)

15        (40 ILCS 5/7-184) (from Ch. 108 1/2, par. 7-184)
16        Sec. 7-184. To determine prior service.
17        To  determine  the  length  of  prior  service  from such
18    information as is available.  Any such determination shall be
19    conclusive as to any such period of service, unless within  2
20    years of the issuance of the first individual statement to an
21    employee,  the  board  reconsiders  the  case and changes the
22    determination.
23        The change to this Section made by this amendatory Act of
24    the 91st General Assembly applies without regard  to  whether
25    the  individual  is in service on or after the effective date
26    of this amendatory Act.
27    (Source: Laws 1963, p. 161.)

28        (40 ILCS 5/7-211) (from Ch. 108 1/2, par. 7-211)
29        Sec. 7-211. Authorizations.
30        (a)  Each participating municipality and  instrumentality
31    thereof and each participating instrumentality shall:
 
                            -47-           LRB9101658EGfgam01
 1             1.  Deduct  all  normal and additional contributions
 2        and contributions for federal Social  Security  taxes  as
 3        required  by  the  Social Security Enabling Act from each
 4        payment  of  earnings  payable  to   each   participating
 5        employee  who  is  entitled  to  any  earnings  from such
 6        municipality or instrumentality thereof or  participating
 7        instrumentality,  and  to  remit  all  such contributions
 8        immediately to the board; and
 9             2.  Pay to the board contributions required by  this
10        Article.
11        (b)  Each  participating employee shall, by virtue of the
12    payment of contributions  to  this  fund,  receive  a  vested
13    interest  in  the  annuities  and  benefits  provided in this
14    Article and in consideration of such vested interest shall be
15    deemed to have  agreed  and  authorized  the  deduction  from
16    earnings  of  all  contributions  payable  to  this  fund  in
17    accordance with this Article.
18        (c)  Payment    of   earnings   less   the   amounts   of
19    contributions provided in this  Article  and  in  the  Social
20    Security  Enabling Act shall be a full and complete discharge
21    of all claims  for  payment  for  services  rendered  by  any
22    employee during the period covered by any such payment.
23        (d)  Any  covered annuitant may authorize the withholding
24    of all or a portion of his or her annuity, for the payment of
25    premiums on group  accident  and  health  insurance  provided
26    pursuant  to  Section 7-199.1.  The annuitant may revoke this
27    authorization at any time.
28    (Source: P.A. 84-812.)

29        (40 ILCS 5/7-224 new)
30        Sec. 7-224.  Section  415  limitations.   Notwithstanding
31    any  other  provisions of this Article, the combined benefits
32    and contributions provided to any participating  employee  by
33    all   plans   of   any  participating  municipality  and  its
 
                            -48-           LRB9101658EGfgam01
 1    instrumentalities and any participating instrumentality shall
 2    not exceed the limitations specified in Section 415(b),  (c),
 3    and  (e)  of  the  Internal  Revenue  Code  of  1986.   If  a
 4    participating employee's benefits or contributions under this
 5    Article,  combined  with  those  under  any other plan of the
 6    participating  municipality  and  its  instrumentalities   or
 7    participating  instrumentality, would otherwise violate those
 8    limitations, the benefits and contributions under  the  other
 9    plan   shall   be  reduced,  rather  than  the  benefits  and
10    contributions provided under this  Article.   To  the  extent
11    that  the  other  plan  fails  to  limit  such  benefits  and
12    contributions, that plan shall be disqualified.

13        (40 ILCS 5/8-125) (from Ch. 108 1/2, par. 8-125)
14        Sec. 8-125.  Annuity.
15        "Annuity":   Equal  monthly  payments  for  life,  unless
16    otherwise specified.
17        For annuities taking effect before January 1,  1998,  the
18    first  payment  shall  be due and payable one month after the
19    occurrence of the event upon which  payment  of  the  annuity
20    depends,  and the last payment shall be due and payable as of
21    the date of the annuitant's death and shall be prorated  from
22    the  date  of the last preceding payment to the date of death
23    for deaths that occur  on  or  before  March  31,  2000.  All
24    payments  made on or after April 1, 2000 shall be made on the
25    first day of the calendar month and the last payment shall be
26    made on the first day of the  calendar  month  in  which  the
27    annuity   payment   period  ends.  All  payments  for  months
28    beginning with April of 2000 shall be for the entire calendar
29    month, without proration. A pro rata amount shall be paid for
30    that part of the month from the March  2000  annuity  payment
31    date through March 31, 2000.
32        For  annuities taking effect on or after January 1, 1998,
33    payments shall be made as of the first day  of  the  calendar
 
                            -49-           LRB9101658EGfgam01
 1    month,  with the first payment to be made as of the first day
 2    of the calendar month coincidental with or next following the
 3    first day of the annuity payment period, and the last payment
 4    to be made as of the first day of the calendar month in which
 5    the annuity payment period ends.  For annuities taking effect
 6    on or after January 1, 1998, all payments shall  be  for  the
 7    entire calendar month, without proration.
 8        For  the  purposes  of this Section, the "annuity payment
 9    period" means the period  beginning  on  the  day  after  the
10    occurrence  of  the  event  upon which payment of the annuity
11    depends, and ending on the day upon which the  death  of  the
12    annuitant or other event terminating the annuity occurs.
13    (Source: P.A. 90-31, eff. 6-27-97.)

14        (40 ILCS 5/8-139) (from Ch. 108 1/2, par. 8-139)
15        Sec. 8-139.  Reversionary annuity.
16        (a)  An  employee,  prior  to  retirement on annuity, may
17    elect to take a lesser amount of annuity  and  provide,  with
18    the  actuarial  value  of  the amount by which his annuity is
19    reduced, a reversionary annuity for a wife, husband,  parent,
20    child,  brother  or sister.  The option shall be exercised by
21    filing  a  written  designation  with  the  board  prior   to
22    retirement,  and  may  be revoked by the employee at any time
23    before retirement.  The death of the employee  prior  to  his
24    retirement shall automatically void the option.
25        (b)  The  death  of the designated reversionary annuitant
26    prior to the employee's retirement shall  automatically  void
27    the  option.   If  the  reversionary annuitant dies after the
28    employee's retirement, and before the death of  the  employee
29    annuitant,  the  reduced  annuity  being  paid to the retired
30    employee annuitant  shall  be  increased  to  the  amount  of
31    annuity  before reduction for the reversionary annuity and no
32    reversionary annuity shall be payable.
33        The option is subject to the further  condition  that  no
 
                            -50-           LRB9101658EGfgam01
 1    reversionary  annuity  shall  be  paid  to  a  parent, child,
 2    brother, or sister if the employee dies before the expiration
 3    of 365 days from the date his written designation  was  filed
 4    with the board, even though he has retired and is receiving a
 5    reduced annuity.
 6        (c)  The employee exercising this option shall not reduce
 7    his retirement annuity by more than $400 a month, or elect to
 8    provide  a  reversionary  annuity of less than $50 per month.
 9    No option shall be permitted if the reversionary annuity  for
10    a widow, when added to the widow's annuity payable under this
11    Article,  exceeds  100% of the reduced annuity payable to the
12    employee.
13        (d)  A  reversionary  annuity  shall  begin  on  the  day
14    following the death of the annuitant and  shall  be  paid  as
15    provided in Section 8-125.
16        (e)  The  increases  in annuity provided in Section 8-137
17    of this Article shall,  as  to  an  employee  so  electing  a
18    reduced annuity relate to the amount of the original annuity,
19    and  such  amount  shall constitute the annuity on which such
20    automatic increases shall be based.
21        (f)  For annuities  elected  after  June  30,  1983,  the
22    amount   of   the   monthly  reversionary  annuity  shall  be
23    determined by multiplying the amount of the monthly reduction
24    in the employee's annuity by  the  factor  in  the  following
25    table  based on the age of the employee and the difference in
26    the age of the employee  and  the  age  of  the  reversionary
27    annuitant at the starting date of the employee's annuity:
28                           Employee's Age
29    Reversionary
30    Annuitant's
31    Age    50-51  52-54  55-57  58-60  61-63  64-66  67-69   70 &
32                                                             Over
33    30 or
34    more
 
                            -51-           LRB9101658EGfgam01
 1    years
 2    younger 3.03   2.56   2.18   1.84   1.55   1.29   1.08   0.91
 3    25-29
 4    years
 5    younger 3.16   2.68   2.29   1.94   1.63   1.37   1.15   0.97
 6    20-24
 7    years
 8    younger 3.35   2.85   2.44   2.07   1.75   1.48   1.25   1.06
 9    15-19
10    years
11    younger 3.60   3.08   2.65   2.26   1.92   1.63   1.39   1.19
12    10-14
13    years
14    younger 3.96   3.40   2.94   2.53   2.16   1.85   1.59   1.37
15    5-9
16    years
17    younger 4.46   3.84   3.35   2.90   2.51   2.16   1.88   1.64
18    0-4
19    years
20    younger 5.15   4.47   3.93   3.44   3.00   2.61   2.29   2.02
21    1-5
22    years
23    older   6.12   5.36   4.76   4.21   3.71   3.26   2.88   2.56
24    6-10
25    years
26    older   7.48   6.61   5.93   5.30   4.71   4.16   3.70   3.29
27    11-15
28    years
29    older   9.37   8.35   7.58   6.83   6.11   5.40   4.82   4.32
30    16-20
31    years
32    older  11.99  10.78   9.84   8.93   8.02   7.13   6.43   5.87
33    21-25
34    years
 
                            -52-           LRB9101658EGfgam01
 1    older  15.59  14.06  12.91  11.82  10.73   9.66   8.88   8.35
 2    26-30
 3    years
 4    older  20.42  18.49  17.15  15.96  14.80  13.65  12.97  12.82
 5    31 or
 6    more
 7    years
 8    older  27.07  24.72  23.34  22.32  21.45  20.62  20.85  23.28
 9    (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)

10        (40 ILCS 5/8-153) (from Ch. 108 1/2, par. 8-153)
11        Sec.  8-153.   Widow's  remarriage  marriage to terminate
12    annuity. A widow's annuity shall terminate when she remarries
13    if the marriage takes place before the date 60 days after the
14    effective date of this amendatory Act  of  the  91st  General
15    Assembly.  If  a  widow  remarries  60 or more days after the
16    effective date of this amendatory Act  of  the  91st  General
17    Assembly,   the   widow's   annuity  shall  continue  without
18    interruption.
19        When a widow dies, if she has not received, in  the  form
20    of  an  annuity,  an  amount equal to the total credited from
21    employee's contributions and applied for the widow's annuity,
22    the difference between such annuity credits  and  the  amount
23    received by her shall be refunded to her, provided, that if a
24    reversionary  annuity  is  payable  to  her,  or to any other
25    person designated by the employee, such amount shall  not  be
26    refunded  but  the  reversionary annuity shall be payable. If
27    there is any child of the employee who is under 18  years  of
28    age,  the  part of any such amount that is required to pay an
29    annuity to the child shall  be  transferred  to  the  child's
30    annuity  reserve.  In  making  refunds under this Section, no
31    interest shall be paid  upon  either  the  total  of  annuity
32    payments  made  or  the amounts subject to refund. Any refund
33    shall be paid according to the provisions of Section 8-170.
 
                            -53-           LRB9101658EGfgam01
 1        A subsequent change in marital status of the widow  shall
 2    not  effect  any restoration of any rights under this Article
 3    except  in  the  case  of  declaration  of  invalidity  of  a
 4    subsequent marriage wherein the declaration of invalidity  is
 5    based upon charges of bigamy by the subsequent husband or the
 6    legal  disability  of  the subsequent husband to enter into a
 7    marriage.
 8    (Source: P.A. 83-706.)

 9        (40 ILCS 5/8-171) (from Ch. 108 1/2, par. 8-171)
10        Sec. 8-171. Refund in lieu of annuity.   In  lieu  of  an
11    annuity,  an  employee  who withdraws and whose annuity would
12    amount to less than $800 $300 a month for life, may elect  to
13    receive a refund of his accumulated contributions for annuity
14    purposes, based on the amounts contributed by him.
15        The  widow of any employee, eligible for annuity upon the
16    death of her husband, whose widow's annuity would  amount  to
17    less than $800 $300 a month for life, may, in lieu of widow's
18    annuity,  elect  to  receive  a  refund  of  the  accumulated
19    contributions  for  annuity  purposes,  based  on the amounts
20    contributed by her deceased employee husband, but reduced  by
21    any amounts theretofore paid to him in the form of an annuity
22    or refund out of such accumulated contributions.
23        Accumulated   contributions  shall  mean  the  amounts  -
24    including the interest credited thereon - contributed by  the
25    employee  for age and service and widow's annuity to the date
26    of his withdrawal or death, whichever first occurs, including
27    any amounts contributed for him as  salary  deductions  while
28    receiving  duty  disability  benefits,  and, if not otherwise
29    included, any accumulations from sums contributed by him  and
30    applied to any pension fund superseded by this fund.
31        The acceptance of such refund in lieu of widow's annuity,
32    on the part of a widow, shall not deprive a child or children
33    of  the right to receive a child's annuity as provided for in
 
                            -54-           LRB9101658EGfgam01
 1    Sections 8-158 and 8-159 of this Article, and  neither  shall
 2    the  payment  of a child's annuity in the case of such refund
 3    to a widow reduce the amount herein set forth  as  refundable
 4    to such widow electing a refund in lieu of widow's annuity.
 5    (Source: P.A. 86-1488.)

 6        (40 ILCS 5/8-244) (from Ch. 108 1/2, par. 8-244)
 7        Sec. 8-244. Annuities, etc., exempt.
 8        (a)  All  annuities,  refunds,  pensions,  and disability
 9    benefits granted under this Article,  shall  be  exempt  from
10    attachment  or  garnishment  process and shall not be seized,
11    taken, subjected to, detained, or levied upon  by  virtue  of
12    any  judgment, or any process or proceeding whatsoever issued
13    out of or by any court in this State,  for  the  payment  and
14    satisfaction  in whole or in part of any debt, damage, claim,
15    demand,  or  judgment  against  any   annuitant,   pensioner,
16    participant,   refund   applicant,   or   other   beneficiary
17    hereunder.
18        (b)  No  annuitant, pensioner, refund applicant, or other
19    beneficiary shall have any right to transfer  or  assign  his
20    annuity, refund, or disability benefit or any part thereof by
21    way of mortgage or otherwise, except that:
22             (1)  an  annuitant  or  pensioner  who elects or has
23        elected to participate in  a  non-profit  group  hospital
24        care  plan  or  group  medical surgical plan may with the
25        approval  of  the  board  and  in  conformity  with   its
26        regulations  authorize  the  board  to  withhold from the
27        pension or annuity the current premium for such  coverage
28        and  pay  such  premium  to the organization underwriting
29        such plan;
30             (2)  in the  case  of  refunds,  a  participant  may
31        pledge by assignment, power of attorney, or otherwise, as
32        security for a loan from a legally operating credit union
33        making  loans  only  to  participants  in  certain public
 
                            -55-           LRB9101658EGfgam01
 1        employee pension funds described in the Illinois  Pension
 2        Code,  all or part of any refund which may become payable
 3        to him in the event of his separation from service; and
 4             (3)  the board, in its discretion, may  pay  to  the
 5        wife  of  any  annuitant, pensioner, refund applicant, or
 6        disability  beneficiary,  such  an  amount  out  of   her
 7        husband's  annuity pension, refund, or disability benefit
 8        as any court of competent jurisdiction may order, or such
 9        an amount as the board may  consider  necessary  for  the
10        support  of his wife or children, or both in the event of
11        his  disappearance  or  unexplained  absence  or  of  his
12        failure to support such wife or children.
13        (c)  The board may retain  out  of  any  future  annuity,
14    pension,  refund or disability benefit payments, such amount,
15    or amounts, as it may require for the repayment of any moneys
16    paid  to  any  annuitant,  pensioner,  refund  applicant,  or
17    disability beneficiary through  misrepresentation,  fraud  or
18    error.   Any  such  action  of  the  board  shall relieve and
19    release the board and the fund from  any  liability  for  any
20    moneys so withheld.
21        (d)  Whenever an annuity or disability benefit is payable
22    to  a  minor  or  to  a  person certified by a medical doctor
23    adjudged to be under legal  disability,  the  board,  in  its
24    discretion  and  when  it  is  in to the best interest of the
25    person concerned, may waive guardianship proceedings and  pay
26    the  annuity or benefit to the person providing or caring for
27    the minor or and  to  the  wife,  parent  or  blood  relative
28    providing or caring for the person under legal disability.
29        In  the event that a person certified by a medical doctor
30    to be  under  legal  disability  (i)  has  no  spouse,  blood
31    relative,  or  other  person  providing  or caring for him or
32    her, (ii) has no guardian of his or her estate, and (iii)  is
33    confined to a Medicare approved, State certified nursing home
34    or  to  a publicly owned and operated nursing home, hospital,
 
                            -56-           LRB9101658EGfgam01
 1    or mental institution, the Board may pay any benefit due that
 2    person to the nursing home, hospital, or mental  institution,
 3    to  be  used  for  the sole benefit of the person under legal
 4    disability.
 5        Payment in accordance with this subsection to  a  person,
 6    nursing home, hospital, or mental institution for the benefit
 7    of  a  minor  or  person  under  legal disability shall be an
 8    absolute discharge of the Fund's liability  with  respect  to
 9    the  amount  so paid.  Any person, nursing home, hospital, or
10    mental institution accepting payment  under  this  subsection
11    shall  notify  the  Fund  of  the death or any other relevant
12    change in the status of  the  minor  or  person  under  legal
13    disability.
14    (Source: P.A. 86-1488.)

15        (40 ILCS 5/9-149) (from Ch. 108 1/2, par. 9-149)
16        Sec.  9-149.  Widow's  remarriage  marriage  to terminate
17    annuity.    A  widow's  annuity  shall  terminate  when   she
18    remarries if the marriage takes place before the date 60 days
19    after  the  effective date of this amendatory Act of the 91st
20    General Assembly.  If a widow remarries 60 or more days after
21    the effective date of this amendatory Act of the 91st General
22    Assembly,  the  widow's  annuity   shall   continue   without
23    interruption.
24        When  a  widow dies, if she has not received, in the form
25    of an annuity, an amount equal to the total sums  accumulated
26    and  credited  from  the employee's contributions and applied
27    for  the  widow's  annuity,  the  difference   between   such
28    accumulated annuity credits and the amount received by her in
29    annuity payments shall be refunded to her; provided that if a
30    reversionary annuity is payable to her or to any other person
31    designated  by the employee, this such aforesaid amount shall
32    not be  refunded,  but  the  reversionary  annuity  shall  be
33    payable.
 
                            -57-           LRB9101658EGfgam01
 1    (Source: P.A. 81-1536.)

 2        (40 ILCS 5/9-194) (from Ch. 108 1/2, par. 9-194)
 3        Sec.  9-194.   To  invest  the  reserves.   To invest the
 4    reserves of the  fund  in  accordance  with  Sections  1-109,
 5    1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115 of this Act.
 6    Investments  made  in  accordance with Section 1-113 shall be
 7    deemed to be prudent the  provisions  set  forth  in  Section
 8    1-113 of this Act.
 9        The  retirement board may sell any security held by it at
10    any time it deems it desirable.
11        The board may enter into agreements and execute documents
12    that it determines to be necessary to complete any investment
13    transaction.
14        All investments shall be clearly held and  accounted  for
15    to indicate ownership by the board.  The board may direct the
16    registration  of securities in its own name or in the name of
17    a nominee created for the express purpose of registration  of
18    securities  by  a savings and loan association or national or
19    State bank or trust company authorized  to  conduct  a  trust
20    business in the State of Illinois.
21        Investments  shall  be  carried  at  cost  or  at a value
22    determined in accordance with generally  accepted  accounting
23    principles.
24    (Source: P.A. 82-960.)

25        (40 ILCS 5/11-124) (from Ch. 108 1/2, par. 11-124)
26        Sec. 11-124.  Annuity.
27        "Annuity":   Equal  monthly  payments  for  life,  unless
28    terminated earlier under Section 11-148, 11-152,  11-153,  or
29    11-230.
30        For  annuities  taking effect before January 1, 1998, the
31    first payment shall be due and payable one  month  after  the
32    occurrence  of  the  event  upon which payment of the annuity



 
                            -58-           LRB9101658EGfgam01
 1    depends.  Until August  1, 1999, and payment  shall  be  made
 2    for  any  part  of  a  monthly  period  in which death of the
 3    annuitant occurs.  Beginning August  1,  1999,  all  payments
 4    shall  be  made  on  the  first day of the calendar month and
 5    shall be for the entire calendar  month,  without  proration.
 6    The  last  payment  shall  be  made  on  the first day of the
 7    calendar month in which the annuity payment period  ends.   A
 8    pro rata amount shall be paid for that part of the month from
 9    the July 1999 annuity payment date through July 31, 1999.
10        For  annuities taking effect on or after January 1, 1998,
11    payments shall be made as of the first day  of  the  calendar
12    month,  with the first payment to be made as of the first day
13    of the calendar month coincidental with or next following the
14    first day of the annuity payment period, and the last payment
15    to be made as of the first day of the calendar month in which
16    the annuity payment period ends.  For annuities taking effect
17    on or after January 1, 1998, all payments shall  be  for  the
18    entire calendar month, without proration.
19        For  the  purposes  of this Section, the "annuity payment
20    period" means the period  beginning  on  the  day  after  the
21    occurrence  of  the  event  upon which payment of the annuity
22    depends, and ending on the day upon which the  death  of  the
23    annuitant or other event terminating the annuity occurs.
24    (Source: P.A. 90-31, eff. 6-27-97.)

25        (40 ILCS 5/11-134.2) (from Ch. 108 1/2, par. 11-134.2)
26        Sec. 11-134.2. Reversionary annuity.
27        (a)  An  employee,  prior  to  retirement on annuity, may
28    elect to take a lesser amount of annuity  and  provide,  with
29    the  actuarial  value  of  the amount by which his annuity is
30    reduced, a reversionary annuity for a wife, husband,  parent,
31    child,  brother  or sister.  The option shall be exercised by
32    filing  a  written  designation  with  the  board  prior   to
33    retirement,  and  may  be revoked by the employee at any time
 
                            -59-           LRB9101658EGfgam01
 1    before retirement.  The death of the employee  prior  to  his
 2    retirement shall automatically void the option.
 3        (b)  The  death  of the designated reversionary annuitant
 4    prior to the employee's retirement shall  automatically  void
 5    the  option.   If  the  reversionary annuitant dies after the
 6    employee's retirement, and before the death of  the  employee
 7    annuitant,  the  reduced  annuity  being  paid to the retired
 8    employee annuitant  shall  be  increased  to  the  amount  of
 9    annuity  before reduction for the reversionary annuity and no
10    reversionary annuity shall be payable.
11        The option is subject to the further  condition  that  no
12    reversionary  annuity  shall  be  paid  to  a  parent, child,
13    brother, or sister if the employee dies before the expiration
14    of 365 days from the date his written designation  was  filed
15    with the board, even though he has retired and is receiving a
16    reduced annuity.
17        (c)  The employee exercising this option shall not reduce
18    his  retirement annuity by more than $400 per month, or elect
19    to provide a reversionary annuity of less than $50 per month.
20    No option shall be permitted if the reversionary annuity  for
21    a widow, when added to the widow's annuity payable under this
22    Article,  exceeds  100% of the reduced annuity payable to the
23    employee.
24        (d)  A  reversionary  annuity  shall  begin  on  the  day
25    following the death of the annuitant and  shall  be  paid  as
26    provided in Section 11-124.
27        (e)  The   increases   in  annuity  provided  in  Section
28    11-134.1 of this Article shall, as to an employee so electing
29    a reduced annuity, relate  to  the  amount  of  the  original
30    annuity,  and  such  amount  shall  constitute the annuity on
31    which such increases shall be based.
32        (f)  For annuities  elected  after  June  30,  1983,  the
33    amount   of   the   monthly  reversionary  annuity  shall  be
34    determined by multiplying the amount of the monthly reduction
 
                            -60-           LRB9101658EGfgam01
 1    in the employee's annuity by  the  factor  in  the  following
 2    table  based on the age of the employee and the difference in
 3    the age of the employee  and  the  age  of  the  reversionary
 4    annuitant at the starting date of the employee's annuity:
 5                                   Employee's Age
 6    Reversionary
 7    Annuitant's
 8    Age    50-51  52-54  55-57  58-60  61-63  64-66  67-69   70 &
 9                                                             Over
10    30 or
11    more
12    years
13    younger 3.03   2.56   2.18   1.84   1.55   1.29   1.08   0.91
14    25-29
15    years
16    younger 3.16   2.68   2.29   1.94   1.63   1.37   1.15   0.97
17    20-24
18    years
19    younger 3.35   2.85   2.44   2.07   1.75   1.48   1.25   1.06
20    15-19
21    years
22    younger 3.60   3.08   2.65   2.26   1.92   1.63   1.39   1.19
23    10-14
24    years
25    younger 3.96   3.40   2.94   2.53   2.16   1.85   1.59   1.37
26    5-9
27    years
28    younger 4.46   3.84   3.35   2.90   2.51   2.16   1.88   1.64
29    0-4
30    years
31    younger 5.15   4.47   3.93   3.44   3.00   2.61   2.29   2.02
32    1-5
33    years
34    older   6.12   5.36   4.76   4.21   3.71   3.26   2.88   2.56
 
                            -61-           LRB9101658EGfgam01
 1    6-10
 2    years
 3    older   7.48   6.61   5.93   5.30   4.71   4.16   3.70   3.29
 4    11-15
 5    years
 6    older   9.37   8.35   7.58   6.83   6.11   5.40   4.82   4.32
 7    16-20
 8    years
 9    older  11.99  10.78   9.84   8.93   8.02   7.13   6.43   5.87
10    21-25
11    years
12    older  15.59  14.06  12.91  11.82  10.73   9.66   8.88   8.35
13    26-30
14    years
15    older  20.42  18.49  17.15  15.96  14.80  13.65  12.97  12.82
16    31 or
17    more
18    years
19    older  27.07  24.72  23.34  22.32  21.45  20.62  20.85  23.28
20    (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)

21        (40 ILCS 5/11-148) (from Ch. 108 1/2, par. 11-148)
22        Sec.  11-148.  Widow's remarriage to terminate annuity. A
23    widow's annuity shall terminate when  she  remarries  if  the
24    marriage  takes  place  before  the  date  60  days after the
25    effective date of this amendatory Act  of  the  91st  General
26    Assembly.  If  a  widow  remarries  60 or more days after the
27    effective date of this amendatory Act  of  the  91st  General
28    Assembly,   the   widow's   annuity  shall  continue  without
29    interruption.
30        When a widow dies, if she has not received, in  the  form
31    of  an  annuity, an amount equal to the total sum accumulated
32    to his credit from employee's contributions and  applied  for
33    the  widow's annuity, the difference between such accumulated
 
                            -62-           LRB9101658EGfgam01
 1    annuity credits and the amount received  by  her  in  annuity
 2    payments  shall  be  refunded  to  her,  provided,  that if a
 3    reversionary annuity is payable if to her, or  to  any  other
 4    person  designated  by  the  employee,  such aforesaid amount
 5    shall not be refunded but the reversionary annuity  shall  be
 6    payable.  If  there is any child of the employee who is under
 7    18 years of age, the part of any such amount that is required
 8    to pay an annuity to the child shall be  transferred  to  the
 9    child's   annuity  reserve.  In  making  refunds  under  this
10    Section, no interest shall be paid upon either the  total  of
11    annuity  payments  made or the amounts subject to refund. Any
12    refund shall be paid according to the provisions  of  Section
13    11-166.
14        A  subsequent change in marital status of the widow shall
15    not affect any restoration of any rights under  this  Article
16    except  in  the  case  of  declaration  of  invalidity  of  a
17    subsequent  marriage wherein the declaration of invalidity is
18    based upon charges of bigamy by the subsequent husband or the
19    legal disability of the subsequent husband to  enter  into  a
20    marriage.
21    (Source: P.A. 83-706.)

22        (40 ILCS 5/11-167) (from Ch. 108 1/2, par. 11-167)
23        Sec.  11-167.  Refunds in lieu of annuity.  In lieu of an
24    annuity, an employee who withdraws, and whose  annuity  would
25    amount  to  less than $800 $300 a month for life may elect to
26    receive a refund of the total sum accumulated to  his  credit
27    from employee contributions for annuity purposes.
28        The  widow of any employee, eligible for annuity upon the
29    death of her husband, whose annuity would amount to less than
30    $800 $300 a month  for  life,  may,  in  lieu  of  a  widow's
31    annuity,  elect  to  receive  a  refund  of  the  accumulated
32    contributions  for  annuity  purposes,  based  on the amounts
33    contributed by her deceased employee husband, but reduced  by
 
                            -63-           LRB9101658EGfgam01
 1    any amounts theretofore paid to him in the form of an annuity
 2    or refund out of such accumulated contributions.
 3        Accumulated   contributions   shall   mean   the  amounts
 4    including  interest  credited  thereon  contributed  by   the
 5    employee  for age and service and widow's annuity to the date
 6    of his withdrawal  or  death,  whichever  first  occurs,  and
 7    including  the accumulations from any amounts contributed for
 8    him as salary  deductions  while  receiving  duty  disability
 9    benefits;  provided that such amounts contributed by the city
10    after December 31, 1983 while the employee is receiving  duty
11    disability benefits.
12        The acceptance of such refund in lieu of widow's annuity,
13    on the part of a widow, shall not deprive a child or children
14    of the right to receive a child's annuity as provided  for in
15    Sections 11-153 and 11-154 of this Article, and neither shall
16    the  payment  of a child's annuity in the case of such refund
17    to a widow reduce the amount herein set forth  as  refundable
18    to such widow electing a refund in lieu of widow's annuity.
19    (Source: P.A. 90-655, eff. 7-30-98.)

20        (40 ILCS 5/11-181) (from Ch. 108 1/2, par. 11-181)
21        Sec.  11-181.  Board created.  A board of 8 members shall
22    constitute the board of trustees authorized to carry out  the
23    provisions  of this Article.  The board shall be known as the
24    Retirement  Board  of  the  Laborers'  and  Retirement  Board
25    Employees' Annuity and Benefit Fund of the city.   The  board
26    shall  consist of 5 persons appointed and 2 employees and one
27    annuitant elected in the manner hereinafter prescribed.
28        The appointed members of the board shall be appointed  as
29    follows:
30        One  member  shall be appointed by the comptroller of the
31    city,  who  may  be  himself  or  anyone  chosen  from  among
32    employees of the city who are versed in the  affairs  of  the
33    comptroller's  office;  one  member shall be appointed by the
 
                            -64-           LRB9101658EGfgam01
 1    City Treasurer of the city, who may be himself  or  a  person
 2    chosen from among employees of the city who are versed in the
 3    affairs  of  the City Treasurer's office; one member shall be
 4    an employee of the city appointed by  the  president  of  the
 5    local  labor  organization  representing  a  majority  of the
 6    employees participating in the Fund; and 2 members  shall  be
 7    appointed  by  the civil service commission or the Department
 8    of Personnel of the city from among employees of the city who
 9    are versed in the affairs of the civil  service  commission's
10    office or the Department of Personnel.
11        The member appointed by the comptroller shall hold office
12    for a term ending on December 1st of the first year following
13    the  year  of  appointment.  The member appointed by the City
14    Treasurer shall hold office for a term ending on December 1st
15    of the second year following the year of  appointment.    The
16    member  appointed  by the civil service commission shall hold
17    office for a term ending on the first day  in  the  month  of
18    December of the third year following the year of appointment.
19    The   additional   member  appointed  by  the  civil  service
20    commission under this  amendatory  Act  of  1998  shall  hold
21    office  for  an  initial term ending on December 1, 2000, and
22    the member appointed  by  the  labor  organization  president
23    shall  hold  office for an initial term ending on December 1,
24    2001.  Thereafter each appointive member shall  be  appointed
25    by  the officer or body that appointed his predecessor, for a
26    term of 3 years.
27        The 2 employee members of the board shall be  elected  as
28    follows:
29        Within 30 days from and after the appointive members have
30    been  appointed  and  have  qualified, the appointive members
31    shall arrange for and hold an election.
32        One employee shall  be  elected  for  a  term  ending  on
33    December  1st  of the first year next following the effective
34    date; one for a term ending on December 1st of the  following
 
                            -65-           LRB9101658EGfgam01
 1    year.
 2        The  initial  annuitant  member shall be appointed by the
 3    other members of the board for  an  initial  term  ending  on
 4    December  1,  1999.  Thereafter, The annuitant member elected
 5    in 1999 shall be deemed to have been  elected  for  a  3-year
 6    2-year  term  ending  on  December  1, 2002.  Thereafter, the
 7    annuitant member shall be elected for a 3-year term ending on
 8    December 1st of the third year following the election 1st  of
 9    the next odd-numbered year.
10    (Source: P.A. 90-766, eff. 8-14-98.)

11        (40 ILCS 5/11-182) (from Ch. 108 1/2, par. 11-182)
12        Sec. 11-182. Board elections; qualification; oath.
13        (a)  In  each  year,  the  board  shall conduct a regular
14    election, under rules adopted by it, at least 30  days  prior
15    to  the  expiration  of the term of the employee member whose
16    term next expires, for the election of a successor for a term
17    of 3 2 years.  Each employee member and his or her  successor
18    shall  be  an  employee who holds a position by certification
19    and appointment as a  result  of  competitive  civil  service
20    examination  as  distinguished from temporary appointment, or
21    so holds a position which is not exempt from  the  classified
22    service or the personnel ordinance of a city that has adopted
23    a  career  service ordinance, for a period of not less than 5
24    years prior to date of election.  At any such  election,  all
25    persons  who  are employees at the time such election is held
26    shall have a right to vote.  The ballot shall  be  of  secret
27    character.
28        (b)  In each odd-numbered year, The board shall conduct a
29    regular election, under rules adopted by it, at least 30 days
30    prior  to the expiration of the term of the annuitant member,
31    for the election of a successor for a  term  of  3  2  years.
32    Each  annuitant  member  and  his or her successor shall be a
33    former employee receiving a retirement (age  and  service  or
 
                            -66-           LRB9101658EGfgam01
 1    prior  service) annuity from the Fund.  At any such election,
 2    all persons who are receiving a retirement (age  and  service
 3    or  prior  service)  annuity  from  the  Fund at the time the
 4    election is held have a right to vote.  The ballot  shall  be
 5    of secret character.
 6        (c)  Any appointive or elective member of the board shall
 7    hold  office  until  his  or  her  successor  is  elected and
 8    qualified.
 9        Any person elected or appointed as a member of the  board
10    shall  qualify  for the office by taking an oath of office to
11    be administered by the city clerk or any person designated by
12    the city clerk.  A copy thereof shall be kept in  the  office
13    of the city clerk.
14        Any  appointment  shall  be  in  writing  and the written
15    instrument shall be filed with the oath.
16    (Source: P.A. 90-766, eff. 8-14-98.)

17        (40 ILCS 5/11-223) (from Ch. 108 1/2, par. 11-223)
18        Sec. 11-223.  Annuities, etc., exempt.
19        (a)  All annuities,  refunds,  pensions,  and  disability
20    benefits  granted  under  this  Article  shall be exempt from
21    attachment or garnishment process and shall  not  be  seized,
22    taken,  subjected  to,  detained, or levied upon by virtue of
23    any judgment, or any process or proceeding whatsoever  issued
24    out  of  or  by  any court in this State, for the payment and
25    satisfaction in whole or in part of any debt, damage,  claim,
26    demand,  or  judgment  against  any  annuitant,  participant,
27    refund applicant, or other beneficiary hereunder.
28        No  annuitant, refund applicant, or other beneficiary may
29    transfer or assign his annuity, refund, or disability benefit
30    or any part thereof by way of mortgage or  otherwise,  except
31    as  provided  in  Section 11-223.1, and except in the case of
32    refunds, when a participant has pledged by assignment,  power
33    of  attorney,  or  otherwise,  as  security for a loan from a
 
                            -67-           LRB9101658EGfgam01
 1    legally  operating  credit  union  making   loans   only   to
 2    participants   in   certain  public  employee  pension  funds
 3    described in the Illinois Pension Code, all or  part  of  any
 4    refund  which  may  become payable to him in the event of his
 5    separation from service.  The board in  its  discretion  may,
 6    however,  pay  to the wife or to the unmarried child under 18
 7    years  of  age  of  any  annuitant,  refund   applicant,   or
 8    disability  beneficiary,  such an amount out of her husband's
 9    annuity refund, or disability benefit as any court may order,
10    or such an amount as the board may consider necessary for the
11    support of his wife or children or both in the event  of  his
12    disappearance  or  unexplained  absence  or of his failure to
13    support such wife or children.
14        (b)  The board may retain  out  of  any  future  annuity,
15    refund,  or  disability  benefit  payments,  such  amount, or
16    amounts as it may require for the  repayment  of  any  moneys
17    paid  to  any  annuitant,  pensioner,  refund  applicant,  or
18    disability  beneficiary  through  misrepresentation, fraud or
19    error.  Any such  action  of  the  board  shall  relieve  and
20    release  the  board  and  the fund from any liability for any
21    moneys so withheld.
22        (c)  Whenever an annuity or disability benefit is payable
23    to a minor or to a  person  certified  by  a  medical  doctor
24    adjudged  to  be  under  legal  disability, the board, in its
25    discretion and when it is in to  the  best  interest  of  the
26    person  concerned,  may waive guardianship or conservatorship
27    proceedings and pay the annuity  or  benefit  to  the  person
28    providing  or caring for the minor or and to the wife, parent
29    or blood relative providing or caring for  the  person  under
30    legal disability.
31        In  the event that a person certified by a medical doctor
32    to be  under  legal  disability  (i)  has  no  spouse,  blood
33    relative,  or  other  person  providing  or caring for him or
34    her, (ii) has no guardian of his or her estate, and (iii)  is
 
                            -68-           LRB9101658EGfgam01
 1    confined to a Medicare approved, State certified nursing home
 2    or  to  a publicly owned and operated nursing home, hospital,
 3    or mental institution, the Board may pay any benefit due that
 4    person to the nursing home, hospital, or mental  institution,
 5    to  be  used  for  the sole benefit of the person under legal
 6    disability.
 7        Payment in accordance with this subsection to  a  person,
 8    nursing home, hospital, or mental institution for the benefit
 9    of  a  minor  or  person  under  legal disability shall be an
10    absolute discharge of the Fund's liability  with  respect  to
11    the  amount  so paid.  Any person, nursing home, hospital, or
12    mental institution accepting payment  under  this  subsection
13    shall  notify  the  Fund  of  the death or any other relevant
14    change in the status of  the  minor  or  person  under  legal
15    disability.
16        (d)  Whenever  an  annuitant,  applicant  for  refund  or
17    disability  beneficiary  disappears  and  his whereabouts are
18    unknown, and it cannot be ascertained that he is alive, there
19    shall be paid to his wife or children or both such amount  as
20    will  not  be  in excess of the amount payable to them in the
21    event such annuitant,  applicant  for  refund  or  disability
22    beneficiary  had  died  on  the date of disappearance.  If he
23    returns, or upon satisfactory proof of his being  alive,  the
24    amount  theretofore  paid  to  such  beneficiaries  shall  be
25    charged  against any moneys payable to him under this Article
26    as though such payment to  such  beneficiaries  had  been  an
27    allowance  to  them out of the moneys payable to the employee
28    as  an  annuitant,  applicant  for   refund   or   disability
29    beneficiary.
30    (Source: P.A. 83-706.)

31        (40 ILCS 5/13-303) (from Ch. 108 1/2, par. 13-303)
32        Sec. 13-303.  Reversionary annuity.
33        (a)  An  employee,  prior  to  retirement on annuity, may
 
                            -69-           LRB9101658EGfgam01
 1    elect a lesser  amount  of  annuity  and  provide,  with  the
 2    actuarial  value  of  the  amount  by  which  his  annuity is
 3    reduced, a reversionary annuity for a wife, husband, parents,
 4    children, brothers or sisters.  The election may be exercised
 5    by filing a written  designation  with  the  Board  prior  to
 6    retirement,  and  may  be revoked by the employee at any time
 7    before retirement.   The  death  of  the  employee  prior  to
 8    retirement shall automatically void the election.
 9        (b)  The  death  of the designated reversionary annuitant
10    prior to the employee's retirement shall  automatically  void
11    the  election,  but,  if death of the designated reversionary
12    annuitant occurs after retirement, the reduced annuity  being
13    paid to the retired employee annuitant shall remain unchanged
14    and no reversionary annuity shall be payable.
15        No  reversionary  annuity  shall  be paid if the employee
16    dies before the expiration of 730  days  from  the  date  the
17    written designation was filed with the board, even though the
18    employee retired and was receiving a reduced annuity.
19        (c)  An  employee exercising this option shall not reduce
20    the annuity  by  more  than  25%,  nor  elect  to  provide  a
21    reversionary  annuity  of  less than $100 per month.  No such
22    option shall be permitted if the reversionary annuity  for  a
23    surviving  spouse,  when  added  to  the  surviving  spouse's
24    annuity  payable  under  this  Article,  exceeds  85%  of the
25    reduced annuity payable to the employee.
26        (d)  A  reversionary  annuity  shall  begin  on  the  day
27    following the death of the annuitant, with the first  payment
28    due  and  payable one month later, and shall continue monthly
29    thereafter until the death of the reversionary annuitant.
30        (e)  The  increases  in  annuity  provided   in   Section
31    13-302(d)  shall,  as  to  an  employee so electing a reduced
32    annuity, relate to the amount of reduced  annuity,  and  such
33    lesser  amount  shall  constitute  the  annuity on which such
34    increases shall be based.
 
                            -70-           LRB9101658EGfgam01
 1        (f)  For  determining  the  actuarial  value  under  this
 2    option  of  the  employee's  annuity  and  the   reversionary
 3    annuity, the Fund shall use an actuarial table recommended by
 4    the  Fund's actuarial consultant and approved by the Board of
 5    Trustees the following actuarial table shall be  used:  "1951
 6    Group  Annuity Male Table of Mortality," set back 5 years for
 7    employees, with 3% interest.
 8    (Source: P.A. 87-794.)

 9        (40 ILCS 5/13-309) (from Ch. 108 1/2, par. 13-309)
10        Sec. 13-309.  Duty disability benefit.
11        (a)  Any employee who becomes disabled, which  disability
12    is  the  result of an injury or illness compensable under the
13    Illinois Workers' Compensation Act or the  Illinois  Workers'
14    Occupational  Diseases  Act, is entitled to a duty disability
15    benefit  during  the  period  of  disability  for  which  the
16    employee does not receive any part of salary, or any part  of
17    a  retirement  annuity under this Article; except that in the
18    case of an employee who first enters service on or after  the
19    effective  date  of  this  amendatory  Act  of  1997,  a duty
20    disability benefit is not payable for the  first  3  days  of
21    disability that would otherwise be payable under this Section
22    if   the  disability  does  not  continue  for  at  least  11
23    additional days.  This benefit shall be 75% of salary at  the
24    date  disability  begins.   However, if the disability in any
25    measure resulted from any physical defect  or  disease  which
26    existed at the time such injury was sustained or such illness
27    commenced,  the  duty  disability  benefit  shall  be  50% of
28    salary.
29        Unless the employer acknowledges that the disability is a
30    result of injury or illness compensable  under  the  Workers'
31    Compensation  Act  or the Workers' Occupational Diseases Act,
32    the duty disability benefit shall not be  payable  until  the
33    issue   of   compensability   under  those  Acts  is  finally
 
                            -71-           LRB9101658EGfgam01
 1    adjudicated.  The period of disability shall be as determined
 2    by the Illinois Industrial Commission or acknowledged by  the
 3    employer.
 4        The  first payment shall be made not later than one month
 5    after the benefit is granted, and subsequent  payments  shall
 6    be  made  at least monthly. The Board shall by rule prescribe
 7    for the payment of such benefits on the basis of  the  amount
 8    of salary lost during the period of disability.
 9        (b)  The  benefit  shall be allowed only if the following
10    requirements are met by the employee:
11             (1)  Application is made to the Board within 90 days
12        from the date disability begins;
13             (2)  A medical report is submitted by at  least  one
14        licensed   and   practicing  physician  as  part  of  the
15        employee's application; and
16             (3)  The  employee  is  examined  by  at  least  one
17        licensed and practicing physician appointed by the  Board
18        and  found  to  be  in a disabled physical condition, and
19        shall be re-examined at least annually thereafter  during
20        the  continuance of disability.  The employee need not be
21        re-examined by a licensed and practicing physician if the
22        attorney for the district certifies in writing  that  the
23        employee  is  entitled  to receive compensation under the
24        Workers' Compensation Act or  the  Workers'  Occupational
25        Diseases Act.
26        (c)  The benefit shall terminate when:
27             (1)  The  employee  returns  to  work  or receives a
28        retirement annuity paid wholly  or  in  part  under  this
29        Article;
30             (2)  The disability ceases;
31             (3)  The   employee  attains  age  65,  but  if  the
32        employee becomes disabled at age 60  or  later,  benefits
33        may  be  extended  for  a  period of no more than 5 years
34        after disablement;
 
                            -72-           LRB9101658EGfgam01
 1             (4)  The  employee  (i)   refuses   to   submit   to
 2        reasonable  examinations  by  physicians  or other health
 3        professionals appointed  by  the  Board,  (ii)  fails  or
 4        refuses  to consent to and sign an authorization allowing
 5        the  Board  to  receive  copies  of  or  to  examine  the
 6        employee's medical and hospital records, or  (iii)  fails
 7        or  refuses to provide complete information regarding any
 8        other employment for compensation he or she has  received
 9        since becoming disabled; or
10             (5)  The employee willfully and continuously refuses
11        to  follow  accept medical advice and treatment to enable
12        the employee to return to work.  However  this  provision
13        does not apply to an employee who relies in good faith on
14        treatment  by  prayer  through  spiritual  means alone in
15        accordance with the tenets and practice of  a  recognized
16        church  or  religious  denomination, by a duly accredited
17        practitioner thereof.
18        In the case of a duty disability recipient who returns to
19    work, the employee must make application  to  the  Retirement
20    Board within 2 years from the date the employee last received
21    duty disability benefits in order to become again entitled to
22    duty disability benefits based on the injury for which a duty
23    disability benefit was theretofore paid.
24    (Source: P.A. 90-12, eff. 6-13-97.)

25        (40 ILCS 5/13-310) (from Ch. 108 1/2, par. 13-310)
26        Sec. 13-310.  Ordinary disability benefit.
27        (a)  Any  employee  who becomes disabled as the result of
28    any cause other  than  injury  or  illness  incurred  in  the
29    performance  of  duty for the employer or any other employer,
30    or while engaged  in  self-employment  activities,  shall  be
31    entitled  to  an  ordinary  disability benefit.  The eligible
32    period for this benefit shall be 25% of the employee's  total
33    actual  service  prior  to  the  date  of  disability  with a
 
                            -73-           LRB9101658EGfgam01
 1    cumulative maximum period of 5 years.
 2        (b)  The benefit shall be allowed only  if  the  employee
 3    files an application in writing with the Board, and a medical
 4    report  is  submitted by at least one licensed and practicing
 5    physician as part of the employee's application.
 6        The benefit is  not  payable  for  any  disability  which
 7    begins  during  any  period  of  unpaid leave of absence.  No
 8    benefit shall be allowed for any period of  disability  prior
 9    to 30 days before application is made, unless the Board finds
10    good  cause  for  the  delay  in filing the application.  The
11    benefit shall not be paid during any  period  for  which  the
12    employee  receives  or  is  entitled  to  receive any part of
13    salary.
14        The benefit is  not  payable  for  any  disability  which
15    begins  during  any  period  of  absence from duty other than
16    allowable vacation time in any calendar  year.   An  employee
17    whose  disability begins during any such ineligible period of
18    absence from service  may  not  receive  benefits  until  the
19    employee  recovers  from the disability and is in service for
20    at least 15 consecutive working days after such recovery.
21        In the case of an employee who first enters service on or
22    after the effective date of this amendatory Act of  1997,  an
23    ordinary  disability  benefit  is not payable for the first 3
24    days of disability that would otherwise be payable under this
25    Section if the disability does not continue for at  least  11
26    additional days.
27        (c)  The benefit shall be 50% of the employee's salary at
28    the date of disability, and shall terminate when the earliest
29    of the following occurs:
30             (1)  The  employee  returns  to  work  or receives a
31        retirement annuity paid wholly  or  in  part  under  this
32        Article;
33             (2)  The disability ceases;
34             (3)  The employee willfully and continuously refuses
 
                            -74-           LRB9101658EGfgam01
 1        to  follow  medical  advice  and  treatment to enable the
 2        employee to return to work.  However this provision  does
 3        not  apply  to  an  employee  who relies in good faith on
 4        treatment by prayer  through  spiritual  means  alone  in
 5        accordance  with  the tenets and practice of a recognized
 6        church or religious denomination, by  a  duly  accredited
 7        practitioner thereof (Blank);
 8             (4)  The   employee  (i)  refuses  to  submit  to  a
 9        reasonable  physical  examination  within  30   days   of
10        application  by  a physician appointed by the Board, (ii)
11        or in  the  case  of  chronic  alcoholism,  the  employee
12        refuses  to join a rehabilitation program licensed by the
13        Department of Public Health of the State of Illinois, and
14        certified by the Joint Commission on the Accreditation of
15        Hospitals, (iii) fails or refuses to consent to and  sign
16        an  authorization allowing the Board to receive copies of
17        or  to  examine  the  employee's  medical  and   hospital
18        records,  or  (iv)  fails  or refuses to provide complete
19        information   regarding   any   other   employment    for
20        compensation  he  or  she  has  received  since  becoming
21        disabled; or
22             (5)  The  eligible  period for this benefit has been
23        exhausted.
24        The first payment of the benefit shall be made not  later
25    than   one  month  after  the  same  has  been  granted,  and
26    subsequent payments shall be made at intervals  of  not  more
27    than 30 days.
28    (Source: P.A. 90-12, eff. 6-13-97.)

29        (40 ILCS 5/13-311) (from Ch. 108 1/2, par. 13-311)
30        Sec.  13-311.  Credit for Workers' Compensation payments.
31    If an employee, or an employee's spouse or children, receives
32    compensation under any workers' compensation or  occupational
33    diseases  law,  the  surviving spouse's or child's annuity or
 
                            -75-           LRB9101658EGfgam01
 1    the disability benefit payable under this  Article  shall  be
 2    reduced  by the amount of the compensation so received if the
 3    amount  is  less  than  the  annuity  or  benefit.   If   the
 4    compensation  exceeds  the  annuity or benefit, no payment of
 5    annuity or benefit shall be made until the period of time has
 6    elapsed when the annuity or  benefit  payable  at  the  rates
 7    provided   in   this   Article  equals  the  amount  of  such
 8    compensation.  However, the commutation of compensation to  a
 9    lump  sum  basis  as provided in the workers' compensation or
10    occupational diseases law shall not increase the  annuity  or
11    benefit  provided  under this Article; the annuity or benefit
12    to be  paid  hereunder  shall  be  based  on  the  amount  of
13    compensation  awarded under such laws prior to commutation of
14    such compensation.  No interest shall be considered in  these
15    calculations.
16    (Source: P.A. 87-794.)

17        (40 ILCS 5/13-314) (from Ch. 108 1/2, par. 13-314)
18        Sec.    13-314.  Alternative    provisions    for   Water
19    Reclamation District commissioners.
20        (a)  Transfer of credits.  Any Water Reclamation District
21    commissioner elected by  vote  of  the  people  and  who  has
22    elected to participate in this Fund may transfer to this Fund
23    credits  and  creditable  service accumulated under any other
24    pension fund or retirement system established under  Articles
25    2  through  18  of this Code, upon payment to the Fund of (1)
26    the amount by which the employer and  employee  contributions
27    that  would have been required if he had participated in this
28    Fund during the period for which credit is being transferred,
29    plus interest, exceeds the amounts actually transferred  from
30    such  other  fund  or  system to this Fund, plus (2) interest
31    thereon at 6% per year compounded annually from the  date  of
32    transfer to the date of payment.
33        (b)  Alternative  annuity.   Any participant commissioner
 
                            -76-           LRB9101658EGfgam01
 1    may elect to establish alternative credits for an alternative
 2    annuity by electing in writing to  make  additional  optional
 3    contributions  in accordance with this Section and procedures
 4    established by the Board.  Such commissioner may  discontinue
 5    making the additional optional contributions by notifying the
 6    fund   in   writing  in  accordance  with  this  Section  and
 7    procedures established by the Board.
 8        Additional optional  contributions  for  the  alternative
 9    annuity shall be as follows:
10             (1)  For  service  after  the  option is elected, an
11        additional  contribution  of  3%  of  salary   shall   be
12        contributed  to  the Fund on the same basis and under the
13        same conditions as contributions required  under  Section
14        13-502.
15             (2)  For  contributions  on  past service before the
16        option is elected, the additional contribution  shall  be
17        3%  of  the  salary for the applicable period of service,
18        plus interest at the annual rate from  time  to  time  as
19        determined  by  the  Board,  compounded annually from the
20        date of service to the date  of  payment.   Contributions
21        for service before the option is elected may be made in a
22        lump  sum  payment  to the Fund or by contributing to the
23        Fund on the same basis and under the same  conditions  as
24        contributions   required   under  Section  13-502.    All
25        payments for past service must be  paid  in  full  before
26        credit  is  given.   No additional optional contributions
27        may be made for any period of service  for  which  credit
28        has  been previously forfeited by acceptance of a refund,
29        unless the refund is repaid in full with interest at  the
30        rate specified in Section 13-603, from the date of refund
31        to the date of repayment.
32        In lieu of the retirement annuity otherwise payable under
33    this Article, any commissioner who has elected to participate
34    in  the  Fund  and  make additional optional contributions in
 
                            -77-           LRB9101658EGfgam01
 1    accordance with this Section, has attained age 55, and has at
 2    least 6 years of  service  credit,  may  elect  to  have  the
 3    retirement   annuity   computed   as   follows:   3%  of  the
 4    participant's average final salary as a commissioner for each
 5    of the first 8 years of  service  credit,  plus  4%  of  such
 6    salary  for  each of the next 4 years of service credit, plus
 7    5% of such salary for each year of service credit  in  excess
 8    of  12 years, subject to a maximum of 80% of such salary.  To
 9    the extent such commissioner  has  made  additional  optional
10    contributions  with  respect  to  only  a portion of years of
11    service  credit,  the  retirement  annuity  will   first   be
12    determined in accordance with this Section to the extent such
13    additional  optional  contributions  were  made,  and then in
14    accordance with the remaining Sections of this Article to the
15    extent of years of  service  credit  with  respect  to  which
16    additional  optional contributions were not made.  The change
17    in minimum retirement age  (from  60  to  55)  made  by  this
18    amendatory Act of 1993 applies to persons who begin receiving
19    a  retirement  annuity  under  this  Section  on or after the
20    effective date of this  amendatory  Act,  without  regard  to
21    whether they are in service on or after that date.
22        (c)  Disability  benefits.   In  lieu  of  the disability
23    benefits  otherwise   payable   under   this   Article,   any
24    commissioner  who (1) has elected to participate in the Fund,
25    and (2) has become permanently disabled and as a  consequence
26    is unable to perform the duties of office, and (3) was making
27    optional contributions in accordance with this Section at the
28    time  the  disability  was  incurred,  may elect to receive a
29    disability annuity calculated in accordance with the  formula
30    in subsection (b).  For the purposes of this subsection, such
31    commissioner  shall  be  considered permanently disabled only
32    if: (i) disability occurs while in service as a  commissioner
33    and  is  of  such  a  nature  as  to  prevent  the reasonable
34    performance of the duties of office at the time; and (ii) the
 
                            -78-           LRB9101658EGfgam01
 1    Board has received a written  certification  by  at  least  2
 2    licensed   physicians  appointed  by  it  stating  that  such
 3    commissioner is disabled and that the disability is likely to
 4    be permanent.
 5        (d)  Alternative survivor's benefits.   In  lieu  of  the
 6    survivor's benefits otherwise payable under this Article, the
 7    spouse or eligible child of any deceased commissioner who (1)
 8    had  elected  to  participate in the Fund, and (2) was either
 9    making additional  optional  contributions  on  the  date  of
10    death,  or  was  receiving  an  annuity calculated under this
11    Section at the time of death, may elect to receive an annuity
12    beginning on the date of the commissioner's  death,  provided
13    that  the  spouse  and commissioner must have been married on
14    the date of the last termination of a service as commissioner
15    and for a continuous period of at least one year  immediately
16    preceding death.
17        The annuity shall be payable beginning on the date of the
18    commissioner's death if the spouse is then age 50 or over, or
19    beginning  at age 50 if the age of the spouse is less than 50
20    years.  If  a  minor  unmarried  child  or  children  of  the
21    commissioner,  under  age  18, also survive, and the child or
22    children are under the  care  of  the  eligible  spouse,  the
23    annuity   shall  begin  as  of  the  date  of  death  of  the
24    commissioner without regard to the spouse's age.
25        The annuity to a spouse shall be 66 2/3% of the amount of
26    retirement annuity earned by the commissioner on the date  of
27    death,  subject  to  a  minimum  payment  of  10%  of salary,
28    provided that if an eligible spouse, regardless of  age,  has
29    in  his  or her care at the date of death of the commissioner
30    any unmarried child or children of the commissioner under age
31    18, the minimum annuity shall be 30%  of  the  commissioner's
32    salary,  plus 10% of salary on account of each minor child of
33    the commissioner, subject to  a  combined  total  payment  on
34    account  of  a spouse and minor children not to exceed 50% of
 
                            -79-           LRB9101658EGfgam01
 1    the deceased commissioner's salary. In the event there  shall
 2    be  no  spouse  of  the  commissioner  surviving, or should a
 3    spouse die while eligible minor children  still  survive  the
 4    commissioner, each such child shall be entitled to an annuity
 5    equal  to  20%  of  salary  of  the commissioner subject to a
 6    combined total payment on account of all such children not to
 7    exceed 50% of salary of the commissioner. The  salary  to  be
 8    used  in  the calculation of these benefits shall be the same
 9    as that prescribed for determining a  retirement  annuity  as
10    provided in subsection (b) of this Section.
11        Upon   the   death  of  a  commissioner  occurring  after
12    termination of a service or while in receipt of a  retirement
13    annuity,  the  combined  total  payment to a spouse and minor
14    children, or to minor children alone if  no  eligible  spouse
15    survives, shall be limited to 75% of the amount of retirement
16    annuity earned by the commissioner.
17        Adopted children shall have status as natural children of
18    the  commissioner  only  if the proceedings for adoption were
19    commenced at  least  one  year  prior  to  the  date  of  the
20    commissioner's death.
21        Marriage  of  a  child or attainment of age 18, whichever
22    first occurs, shall render the child ineligible  for  further
23    consideration in the payment of annuity to a spouse or in the
24    increase   in   the   amount   thereof.  Upon  attainment  of
25    ineligibility  of   the   youngest   minor   child   of   the
26    commissioner,  the  annuity  shall  immediately revert to the
27    amount payable upon death of a commissioner leaving no  minor
28    children  surviving.  If  the  spouse is under age 50 at such
29    time, the annuity as revised shall be deferred until such age
30    is attained.
31        (e)  Refunds.     Refunds    of    additional    optional
32    contributions shall be made on the same basis and  under  the
33    same  conditions  as  provided under Section 13-601. Interest
34    shall be credited on  the  same  basis  and  under  the  same
 
                            -80-           LRB9101658EGfgam01
 1    conditions as for other contributions.
 2        Optional  contributions  shall  be  accounted  for  in  a
 3    separate    Commission's   Optional   Contribution   Reserve.
 4    Optional contributions under this Section shall  be  included
 5    in  the  amount of employee contributions used to compute the
 6    tax levy under Section 13-503.
 7        (f)  Effective date.  The effective date of this plan  of
 8    optional  alternative benefits and contributions shall be the
 9    date upon which approval was received from the U.S.  Internal
10    Revenue  Service.   The plan of optional alternative benefits
11    and contributions  shall  not  be  available  to  any  former
12    employee  receiving an annuity from the Fund on the effective
13    date, unless  said  former  employee  re-enters  service  and
14    renders at least 3 years of additional service after the date
15    of re-entry as a commissioner.
16    (Source: P.A. 90-12, eff. 6-13-97.)

17        (40 ILCS 5/13-603) (from Ch. 108 1/2, par. 13-603)
18        Sec.  13-603.  Restoration of rights.  If an employee who
19    has received a refund subsequently re-enters the service  and
20    renders  one  year  of  contributing service from the date of
21    such  re-entry,  the  employee  shall  be  entitled  to  have
22    restored all  accumulation  and  service  credits  previously
23    forfeited  by  making  a  repayment  of the refund, including
24    interest of 8% per annum from the date of the refund  to  the
25    date  of  repayment  at  a rate equal to the higher of 8% per
26    annum or the actuarial investment return assumption  used  in
27    the Fund's most recent Annual Actuarial Statement.  Repayment
28    may  be  made  either  directly  to  the  Fund or in a manner
29    similar to that provided for the contributions required under
30    Section 13-502.  The repayment must be made in  a  lump  sum.
31    The service credits represented thereby, or any part thereof,
32    shall  not  become  effective  unless the full amount due has
33    been paid  by  the  employee,  including  interest.   If  the
 
                            -81-           LRB9101658EGfgam01
 1    employee  fails to make a full repayment, any partial amounts
 2    paid by the employee shall be refunded  without  interest  if
 3    the employee dies in service or withdraws.
 4    (Source: P.A. 87-794.)

 5        (40 ILCS 5/14-118) (from Ch. 108 1/2, par. 14-118)
 6        Sec.  14-118.   Widow's annuity - Conditions for payment.
 7    A widow who exercises the right of  election  to  receive  an
 8    annuity  pursuant  to  this Section is entitled to a lump sum
 9    payment of $500 plus a widow's annuity, if:
10             (1)  she was married to the deceased member:
11                  (i)  in the case of a member  who  dies  before
12             the  effective  date  of  this amendatory Act of the
13             91st General Assembly, for at least one 1 year prior
14             to his death or retirement, whichever first  occurs,
15             and  also  on the day of the last termination of his
16             service as a State employee; or
17                  (ii)  in the case of a member who  dies  on  or
18             after  the  effective date of this amendatory Act of
19             the 91st General Assembly, for  at  least  one  year
20             immediately  prior  to the date of death, regardless
21             of the date of withdrawal;
22             (2)  the deceased member had at  least  8  years  of
23        creditable service if death occurred while in service, or
24        while  on  leave  of  absence  from  service, or while in
25        receipt of a nonoccupational disability  or  occupational
26        disability benefit, or after retirement;
27             (3)  she  was  nominated  exclusively to receive the
28        entire death benefit payable under this Article;
29             (4)  death of the member occurred after  withdrawal,
30        and  he  had  fulfilled  the  prescribed  age and service
31        conditions for  establishing  a  right  in  a  retirement
32        annuity; and
33             (5)  she  elected  to  receive  the  widow's annuity
 
                            -82-           LRB9101658EGfgam01
 1        within 6 months from the date of death of  the  employee,
 2        otherwise  the  survivors annuity if applicable, shall be
 3        payable.
 4          If a widow's annuity beneficiary becomes entitled to  a
 5    survivors  annuity  and a widow's annuity, she shall elect to
 6    receive only one of such annuities.
 7        The surviving spouse of a person who (1) died on or after
 8    January 1, 1985, (2) withdrew from service prior to August 1,
 9    1953, (3) was receiving an annuity from  the  system  at  the
10    time  of  death, and (4) meets all other requirements of this
11    Section, shall be entitled to  the  benefits  provided  under
12    this Section.
13        A widow's annuity shall be payable beginning on the first
14    of the month following the date of death of the member if the
15    widow  has then attained age 50 or, if she is under age 50 on
16    such date, on the first of the month following her attainment
17    of such age; provided, that if an unmarried child or children
18    of the member under age 18 (or under age 22  if  a  full-time
19    student)  also  survive  him,  and  the child or children are
20    under the care of the eligible  widow,  the  widow's  annuity
21    shall  begin on the first of the month following the member's
22    death without regard to the age of  the  widow.   If  she  is
23    under age 50 at the death of the member and she qualifies for
24    a  widow's  annuity,  she is entitled to receive the lump sum
25    payment immediately upon  application,  but  payment  of  the
26    widow's annuity shall be deferred as provided above.
27        The   provision  for  a  widow's  annuity  shall  not  be
28    construed to affect the payment of  a  reversionary  annuity.
29    If  a  widow  qualifies for more than one widow's annuity, or
30    for a widow's annuity and  a  survivors  annuity,  she  shall
31    elect to receive only one of such annuities.
32        This  Section  shall  not  apply to the widow of any male
33    person who first became a member after July 19, 1961.
34    (Source: P.A. 90-448, eff. 8-16-97.)
 
                            -83-           LRB9101658EGfgam01
 1        (40 ILCS 5/14-120) (from Ch. 108 1/2, par. 14-120)
 2        Sec.  14-120.   Survivors  annuities  -  Conditions   for
 3    payments.  A survivors annuity is established for all members
 4    of  the  System.  Upon the death of any male person who was a
 5    member on July 19, 1961, however,  his  widow  may  have  the
 6    option  of  receiving  the  widow's  annuity provided in this
 7    Article, in lieu of the survivors annuity.
 8        (a)  A survivors annuity beneficiary, as herein  defined,
 9    is  eligible  for  a survivors annuity if the deceased member
10    had completed at least 1 1/2 years of contributing creditable
11    service if death occurred:
12             (1)  while in service;
13             (2)  while on an approved  or  authorized  leave  of
14        absence    from   service,   not   exceeding   one   year
15        continuously; or
16             (3)  while  in   receipt   of   a   non-occupational
17        disability or an occupational disability benefit.
18        (b)  If  death of the member occurs after withdrawal, the
19    survivors annuity beneficiary is eligible  for  such  annuity
20    only  if  the  member had fulfilled at the date of withdrawal
21    the prescribed service conditions for establishing a right in
22    a retirement annuity.
23        (c)  Payment  of  the  survivors  annuity   shall   begin
24    immediately  if  the beneficiary is 50 years or over, or upon
25    attainment of age 50 if the beneficiary is under that age  at
26    the date of the member's death. In the case of survivors of a
27    member whose death occurred between November 1, 1970 and July
28    15,  1971,  the  payment of the survivors annuity shall begin
29    upon October 1, 1977, if the beneficiary is then 50 years  of
30    age  or  older,  or  upon  the  attainment  of  age 50 if the
31    beneficiary is under that age on October 1, 1977.
32        If an eligible child or children, under the care  of  the
33    spouse  also  survive the member, the survivors annuity shall
34    begin immediately without regard to whether  the  beneficiary
 
                            -84-           LRB9101658EGfgam01
 1    has attained age 50.
 2        Benefits  under  this Section shall accrue and be payable
 3    for whole calendar months, beginning on the first day of  the
 4    month  after  the  initiating  event occurs and ending on the
 5    last day of the month in which the terminating event occurs.
 6        (d)  A survivor annuity beneficiary means:
 7             (1)  A spouse of a member or annuitant if:
 8                  (i)  in the case of a member or  annuitant  who
 9             dies  before  the  effective date of this amendatory
10             Act  of  the  91st  General  Assembly,  the  current
11             marriage with the member or annuitant was in  effect
12             for  at  least one year at the date of the member or
13             annuitant's death  or  withdrawal,  whichever  first
14             occurs; or
15                  (ii)  in  the case of a member or annuitant who
16             dies  on  or  after  the  effective  date  of   this
17             amendatory  Act  of  the  91st General Assembly, the
18             current marriage with the member or annuitant was in
19             effect for at least one year  immediately  prior  to
20             the  date  of  death,  regardless  of  the  date  of
21             withdrawal.
22             (2)  An  unmarried  child under age 18 (under age 22
23        if a full-time student) of the member  or  annuitant;  an
24        unmarried  stepchild  under  age  18  (under  age 22 if a
25        full-time student) who has been such  for  at  least  one
26        year  at  the  date of the member's death or at least one
27        year at the date of withdrawal, whichever  first  occurs;
28        an  unmarried adopted child under age 18 (under age 22 if
29        a full-time student) if  the  adoption  proceedings  were
30        initiated  at  least  one  year  prior  to  the  death or
31        withdrawal of the member or  annuitant,  whichever  first
32        occurs;  and  an unmarried child over age 18 if he or she
33        is  dependent  by  reason  of  a   physical   or   mental
34        disability,  so long as the physical or mental disability
 
                            -85-           LRB9101658EGfgam01
 1        continues.  For purposes of this  subsection,  disability
 2        means  inability  to  engage  in  any substantial gainful
 3        activity by reason of any medically determinable physical
 4        or mental impairment which can be expected to  result  in
 5        death  or which has lasted or can be expected to last for
 6        a continuous period of not less than 12 months.
 7             (3)  A dependent parent of the member or  annuitant;
 8        a  dependent  step-parent by a marriage contracted before
 9        the member or annuitant attained age 18; or  a  dependent
10        adopting  parent  by  whom  the  member  or annuitant was
11        adopted before he or she attained age 18.
12        (e)  Payment of a  survivors  annuity  to  a  beneficiary
13    terminates  upon:  (1)  remarriage  before age 55 that occurs
14    before the effective date of this amendatory Act of the  91st
15    General  Assembly  or  death, if the beneficiary is a spouse;
16    (2) marriage or death, if the beneficiary is a child; or  (3)
17    remarriage  before  age  55 or death, if the beneficiary is a
18    parent.  Remarriage of a prospective beneficiary prior to the
19    attainment of age 50 disqualifies  the  beneficiary  for  the
20    annuity expectancy hereunder, if the remarriage occurs before
21    the effective date of this amendatory Act of the 91st General
22    Assembly.   Termination due to a marriage or remarriage shall
23    be permanent, regardless of any  future  changes  in  marital
24    status.
25        The  substantive  changes made to this subsection by this
26    amendatory Act of the 91st General  Assembly  (pertaining  to
27    remarriage  prior  to  age  55 or 50) apply without regard to
28    whether the deceased participant or annuitant was in  service
29    on or after the effective date of this amendatory Act.
30        Any  person whose survivors annuity was terminated during
31    1978 or 1979 due to remarriage at age 55  or  over  shall  be
32    eligible  to  apply,  not  later  than  July  1,  1990, for a
33    resumption of that annuity, to begin on July 1, 1990.
34        (f)  The term "dependent" relating to a survivors annuity
 
                            -86-           LRB9101658EGfgam01
 1    means a beneficiary of a survivors annuity who was  receiving
 2    from  the  member  at the date of the member's death at least
 3    1/2 of the support for maintenance including board,  lodging,
 4    medical care and like living costs.
 5        (g)  If there is no eligible spouse surviving the member,
 6    or  if  a survivors annuity beneficiary includes a spouse who
 7    dies or is disqualified by remarriage remarries, the  annuity
 8    is payable to an unmarried child or children.  If at the date
 9    of death of the member there is no spouse or unmarried child,
10    payments  shall be made to a dependent parent or parents.  If
11    no  eligible  survivors  annuity  beneficiary  survives   the
12    member,  the non-occupational death benefit is payable in the
13    manner provided in this Article.
14        (h)  Survivor benefits do  not  affect  any  reversionary
15    annuity.
16        (i)  If  a survivors annuity beneficiary becomes entitled
17    to a widow's annuity or one or more  survivors  annuities  or
18    both  such  annuities, the beneficiary shall elect to receive
19    only one of such annuities.
20        (j)  Contributing  creditable  service  under  the  State
21    Universities Retirement System and the  Teachers'  Retirement
22    System  of  the  State  of  Illinois  shall  be considered in
23    determining whether  the  member  has  met  the  contributing
24    service requirements of this Section.
25        (k)  In  lieu of the Survivor's Annuity described in this
26    Section, the spouse of the member has the  option  to  select
27    the  Nonoccupational Death Benefit described in this Article,
28    provided the  spouse  is  the  sole  survivor  and  the  sole
29    nominated beneficiary of the member.
30        (l)  The  changes  made  to  this  Section  and  Sections
31    14-118,  14-119,  and  14-128 by this amendatory Act of 1997,
32    relating to benefits for certain unmarried children  who  are
33    full-time  students  under  age  22,  apply without regard to
34    whether the deceased member was in service on  or  after  the
 
                            -87-           LRB9101658EGfgam01
 1    effective date of this amendatory Act of 1997.  These changes
 2    do  not  authorize the repayment of a refund or a re-election
 3    of  benefits,  and  any  benefit  or  increase  in   benefits
 4    resulting from these changes is not payable retroactively for
 5    any  period  before the effective date of this amendatory Act
 6    of 1997.
 7    (Source: P.A. 90-448, eff. 8-16-97; 91-357, eff. 7-29-99.)

 8        (40 ILCS 5/14-128) (from Ch. 108 1/2, par. 14-128)
 9        Sec.   14-128.    Occupational   death   benefit.      An
10    occupational  death  benefit  is provided for a member of the
11    System whose death, prior to  retirement,  is  the  proximate
12    result  of  bodily  injuries  sustained or a hazard undergone
13    while in the performance and within the scope of the member's
14    duties.
15        (a)  Conditions for payment.
16        Exclusive of the lump sum payment  provided  for  herein,
17    all  annuities under this Section shall accrue and be payable
18    for complete calendar months, beginning on the first  day  of
19    the  month  next  following the month in which the initiating
20    event occurs and ending on the last day of the month in which
21    the terminating event occurs.
22        The following  named  survivors  of  the  member  may  be
23    eligible for an annuity under this Section:
24             (i)  The member's spouse.
25             (ii)  An  unmarried child of the member under age 18
26        (under age 22  if  a  full-time  student);  an  unmarried
27        stepchild  under  age  18  (under  age  22 if a full-time
28        student) who has been such for at least one year  at  the
29        date  of  the  member's death; an unmarried adopted child
30        under age 18 (under age 22 if a full-time student) if the
31        adoption proceedings were initiated  at  least  one  year
32        prior  to the death of the member; and an unmarried child
33        over age 18 who is dependent by reason of a  physical  or
 
                            -88-           LRB9101658EGfgam01
 1        mental disability, for so long as such physical or mental
 2        disability  continues.   For the purposes of this Section
 3        disability means inability to engage in  any  substantial
 4        gainful  activity by reason of any medically determinable
 5        physical or mental impairment which can  be  expected  to
 6        result in death or which has lasted or can be expected to
 7        last for a continuous period of not less than 12 months.
 8             (iii)  If  no spouse or eligible children survive: a
 9        dependent parent of the member; a  dependent  step-parent
10        by  a  marriage contracted before the member attained age
11        18; or a dependent adopting parent by whom the member was
12        adopted before he or she attained age 18.
13        The term "dependent" relating to  an  occupational  death
14    benefit means a survivor of the member who was receiving from
15    the  member at the date of the member's death at least 1/2 of
16    the support for maintenance including board, lodging, medical
17    care and like living costs.
18        Payment  of  the  annuity  shall   continue   until   the
19    occurrence of the following:
20             (1)  remarriage before age 55 that occurs before the
21        effective date of this amendatory Act of the 91st General
22        Assembly or death, in the case of a surviving spouse;
23             (2)  attainment   of   age   18  or  termination  of
24        disability,  death,  or  marriage,  in  the  case  of  an
25        eligible child;
26             (3)  remarriage before age 55 or death, in the  case
27        of a dependent parent.
28        If  none of the aforementioned beneficiaries is living at
29    the date of  death  of  the  member,  no  occupational  death
30    benefit  shall  be  payable,  but  the  nonoccupational death
31    benefit shall be payable as provided in this Article.
32        The change made to this subsection by this amendatory Act
33    of the 91st General Assembly (pertaining to remarriage  prior
34    to  age  55)  applies  without regard to whether the deceased
 
                            -89-           LRB9101658EGfgam01
 1    member was in service on or after the effective date of  this
 2    amendatory Act.
 3        (b)  Amount of benefit.
 4        The  member's  accumulated  contributions  plus  credited
 5    interest shall be payable in a lump sum to such person as the
 6    member  has nominated by written direction, duly acknowledged
 7    and filed with the Board, or if no  such  nomination  to  the
 8    estate  of the member.  When an annuitant is re-employed by a
 9    Department,  the  accumulated  contributions  plus   credited
10    interest payable on the member's account shall, if the member
11    has not previously elected a reversionary annuity, consist of
12    the  excess,  if  any,  of  the  member's  total  accumulated
13    contributions  plus  credited  interest  for  all  creditable
14    service  over  the  total  amount  of  all retirement annuity
15    payments received by the member prior to death.
16        In addition to  the  foregoing  payment,  an  annuity  is
17    provided for eligible survivors as follows:
18             (1)  If  the  survivor is a spouse only, the annuity
19        shall be 50% of the member's final average compensation.
20             (2)  If the  spouse  has  in  his  or  her  care  an
21        eligible   child   or  children,  the  annuity  shall  be
22        increased by an amount equal to 15% of the final  average
23        compensation  on account of each such child, subject to a
24        limitation on  the  combined  annuities  to  a  surviving
25        spouse and children of 75% of final average compensation.
26             (3)  If  there  is  no  surviving  spouse, or if the
27        surviving spouse dies or remarries while a child  remains
28        eligible,  then  each  such child shall be entitled to an
29        annuity of 15% of the  deceased  member's  final  average
30        compensation,  subject  to  a  limitation of 50% of final
31        average compensation to all such children.
32             (4)  If there is no  surviving  spouse  or  eligible
33        children,  then  an  annuity  shall  be  payable  to  the
34        member's dependent parents, equal to 25% of final average
 
                            -90-           LRB9101658EGfgam01
 1        compensation to each such beneficiary.
 2        If  any  annuity  payable under this Section is less than
 3    the  corresponding  survivors  annuity,  the  beneficiary  or
 4    beneficiaries of the annuity under this Section may elect  to
 5    receive  the  survivors annuity and the nonoccupational death
 6    benefit provided for in this Article in lieu of  the  annuity
 7    provided under this Section.
 8        (c)  Occupational  death  claims  pending adjudication by
 9    the  Industrial  Commission  or  a  ruling  by   the   agency
10    responsible  for determining the liability of the State under
11    the "Workers' Compensation  Act"  or  "Workers'  Occupational
12    Diseases  Act"  shall  be  payable  under Sections 14-120 and
13    14-121 the Survivor's Annuity Section of this Article until a
14    ruling  or  adjudication  occurs,  if  the   beneficiary   or
15    beneficiaries:   (1)  meet  all  conditions  for  payment  as
16    prescribed in this Article; and (2) execute an assignment  of
17    benefits   payable   as  a  result  of  adjudication  by  the
18    Industrial Commission or a ruling by the  agency  responsible
19    for  determining  the liability of the State under such Acts.
20    The assignment shall be made to the System and shall  be  for
21    an amount equal to the excess of benefits paid under Sections
22    14-120  and  14-121  the  Survivor's  Annuity Section of this
23    Article over benefits payable as a result of adjudication  of
24    the  workers'  compensation  claim  computed from the date of
25    death of the member.
26        (d)  Every occupational death annuity payable under  this
27    Section  shall be increased on each January 1 occurring on or
28    after (i) January 1, 1990, or (ii) the first  anniversary  of
29    the  commencement  of the annuity, whichever occurs later, by
30    an amount equal to 3% of the current amount of  the  annuity,
31    including  any previous increases under this Article, without
32    regard to whether the deceased member was in service  on  the
33    effective date of this amendatory Act of 1991.
34    (Source: P.A. 90-448, eff. 8-16-97.)
 
                            -91-           LRB9101658EGfgam01
 1        (40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
 2        Sec. 14-130.  Refunds; rules.
 3        (a)  Upon  withdrawal  a  member  is entitled to receive,
 4    upon written request, a refund of the member's contributions,
 5    including credits granted  while  in  receipt  of  disability
 6    benefits,  without  credited  interest.   The  board,  in its
 7    discretion may withhold payment of the refund of  a  member's
 8    contributions  for  a  period  not to exceed 1 year after the
 9    member has ceased to be an employee.
10        For purposes of this Section, a member will be considered
11    to have withdrawn from service if a change  in,  or  transfer
12    of,  his  position  results  in  his  becoming ineligible for
13    continued  membership  in  this  System  and   eligible   for
14    membership  in  another  public  retirement system under this
15    Act.
16        (b)  A   member   receiving   a   refund   forfeits   and
17    relinquishes all accrued rights in the System, including  all
18    accumulated  creditable service.  If the person again becomes
19    a member of the System and establishes at least  2  years  of
20    creditable   service,   the   member  may  repay  the  moneys
21    previously refunded.  However, a former  member  may  restore
22    credits  previously  forfeited  by  acceptance  of  a  refund
23    without  returning  to  service  by  applying  in writing and
24    repaying to the System, by April 1, 1993, the amount  of  the
25    refund  plus  regular  interest  calculated  from the date of
26    refund to the date of repayment.
27        The repayment of refunds issued prior to January 1,  1984
28    shall  consist  of  the  amount refunded plus 5% interest per
29    annum compounded annually for the period from the date of the
30    refund to the end of the month in which  repayment  is  made.
31    The  repayment  of refunds issued after January 1, 1984 shall
32    consist of the amount refunded plus regular interest for  the
33    period  from  the  date  of refund to the end of the month in
34    which repayment is made.  However, in the case  of  a  refund
 
                            -92-           LRB9101658EGfgam01
 1    that is repaid in a lump sum between January 1, 1991 and July
 2    1,  1991, repayment shall consist of the amount refunded plus
 3    interest at the rate of 2.5% per  annum  compounded  annually
 4    from  the date of the refund to the end of the month in which
 5    repayment is made.
 6        Upon repayment, the member shall receive credit  for  the
 7    service,  member  contributions and regular interest that was
 8    forfeited by acceptance of the  refund  as  well  as  regular
 9    interest  for  the  period of non-membership.  Such repayment
10    shall be made in full before retirement either in a lump  sum
11    or  in  installment payments in accordance with such rules as
12    may be adopted by the board.
13        (b-5)  The Board may adopt rules governing the  repayment
14    of  refunds  and  establishment of credits in cases involving
15    awards of back pay or reinstatement.  The rules may authorize
16    repayment of a refund in installment payments and  may  waive
17    the  payment  of  interest  on  refund amounts repaid in full
18    within a specified period.
19        (c)  A member no longer in service who is  unmarried  and
20    on  the  date  of retirement or who does not have an eligible
21    survivors  annuity  beneficiary  on  the  at  that  date   of
22    application therefor is entitled to a refund of contributions
23    for  widow's  annuity or survivors annuity purposes, or both,
24    as the case may be, without interest.  A widow's  annuity  or
25    survivors  annuity  shall  not be payable upon the death of a
26    person who has received this refund,  unless  prior  to  that
27    death the amount of the refund has been repaid to the System,
28    together with regular interest from the date of the refund to
29    the date of repayment.
30        (d)  Any  member  who  has service credit in any position
31    for which an alternative retirement annuity is  provided  and
32    in  relation  to  which  an  increase in the rate of employee
33    contribution is required, shall  be  entitled  to  a  refund,
34    without  interest,  of  that  part  of  the member's employee
 
                            -93-           LRB9101658EGfgam01
 1    contribution which results from that increase in the employee
 2    rate if the member does  not  qualify  for  that  alternative
 3    retirement annuity at the time of retirement.
 4    (Source: P.A. 90-448, eff. 8-16-97.)

 5        (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
 6        Sec. 15-107.  Employee.
 7        (a)  "Employee"  means  any  member  of  the educational,
 8    administrative, secretarial, clerical, mechanical,  labor  or
 9    other  staff of an employer whose employment is permanent and
10    continuous or who is employed in a position in which services
11    are expected to be rendered on  a  continuous  basis  for  at
12    least  4  months or one academic term, whichever is less, who
13    (A) receives payment  for  personal  services  on  a  warrant
14    issued pursuant to a payroll voucher certified by an employer
15    and  drawn  by the State Comptroller upon the State Treasurer
16    or by an employer upon trust, federal or other funds, or  (B)
17    is  on  a  leave of absence without pay.  Employment which is
18    irregular, intermittent or temporary shall not be  considered
19    continuous for purposes of this paragraph.
20        However, a person is not an "employee" if he or she:
21             (1)  is   a   student   enrolled  in  and  regularly
22        attending classes in a college or university which is  an
23        employer,  and  is  employed on a temporary basis at less
24        than full time;
25             (2)  is currently receiving a retirement annuity  or
26        a  disability  retirement  annuity under Section 15-153.2
27        from this System;
28             (3)  is on a military leave of absence;
29             (4)  is eligible to participate in the Federal Civil
30        Service  Retirement  System  and  is   currently   making
31        contributions  to that system based upon earnings paid by
32        an employer;
33             (5)  is on leave of absence  without  pay  for  more
 
                            -94-           LRB9101658EGfgam01
 1        than   60   days  immediately  following  termination  of
 2        disability benefits under this Article;
 3             (6)  is hired  after  June  30,  1979  as  a  public
 4        service  employment program participant under the Federal
 5        Comprehensive Employment and Training  Act  and  receives
 6        earnings  in  whole  or in part from funds provided under
 7        that Act;
 8             (7)  is employed on or after July 1, 1991 to perform
 9        services that are excluded by  subdivision  (a)(7)(f)  or
10        (a)(19) of Section 210 of the federal Social Security Act
11        from  the  definition of employment given in that Section
12        (42 U.S.C. 410); or
13             (8)  participates  in  an   optional   program   for
14        part-time workers under Section 15-158.1.
15        (b)  Any  employer  may,  by filing a written notice with
16    the board, exclude from  the  definition  of  "employee"  all
17    persons  employed  pursuant  to  a  federally funded contract
18    entered into after July  1,  1982  with  a  federal  military
19    department  in  a  program  providing  training  in  military
20    courses  to  federal  military  personnel  on a military site
21    owned by the United States Government, if this  exclusion  is
22    not  prohibited  by  the federally funded contract or federal
23    laws or rules governing the administration of the contract.
24        (c)  Any person appointed by the Governor under the Civil
25    Administrative Code of the State is an employee, if he or she
26    is a participant in this system on the effective date of  the
27    appointment.
28        (d)  A  participant on lay-off status under civil service
29    rules is considered an employee for not more  than  120  days
30    from the date of the lay-off.
31        (e)  A  participant  is considered an employee during (1)
32    the first 60 days of disability leave, (2) the period, not to
33    exceed  one  year,  in  which  his  or  her  eligibility  for
34    disability benefits is  being  considered  by  the  board  or
 
                            -95-           LRB9101658EGfgam01
 1    reviewed by the courts, and (3) the period he or she receives
 2    disability  benefits  under the provisions of Section 15-152,
 3    workers' compensation or occupational  disease  benefits,  or
 4    disability income under an insurance contract financed wholly
 5    or partially by the employer.
 6        (f)  Absences  without  pay,  other than formal leaves of
 7    absence, of less than 30 calendar days, are not considered as
 8    an interruption of a person's status as an employee.  If such
 9    absences during any period of 12 months exceed 30 work  days,
10    the   employee   status   of  the  person  is  considered  as
11    interrupted as of the 31st work day.
12        (g)  A staff member whose  employment  contract  requires
13    services  during  an  academic  term  is  to be considered an
14    employee during the summer and other vacation periods, unless
15    he or she declines an employment contract for the  succeeding
16    academic  term  or  his or her employment status is otherwise
17    terminated, and he or she receives no earnings  during  these
18    periods.
19        (h)  An  individual  who  was  a  participating  employee
20    employed   in  the  fire  department  of  the  University  of
21    Illinois's Champaign-Urbana campus immediately prior  to  the
22    elimination of that fire department and who immediately after
23    the  elimination  of  that fire department became employed by
24    the fire department of the City of  Urbana  or  the  City  of
25    Champaign  shall continue to be considered as an employee for
26    purposes of this  Article  for  so  long  as  the  individual
27    remains  employed  as  a firefighter by the City of Urbana or
28    the City of Champaign.  The  individual  shall  cease  to  be
29    considered  an  employee  under  this subsection (h) upon the
30    first  termination  of  the  individual's  employment  as   a
31    firefighter by the City of Urbana or the City of Champaign.
32        (i)  An  individual  who is employed on a full-time basis
33    as an officer or employee of a statewide teacher organization
34    that serves System participants or an officer of  a  national
 
                            -96-           LRB9101658EGfgam01
 1    teacher  organization  that  serves  System  participants may
 2    participate in the System and shall be  deemed  an  employee,
 3    provided  that  (1)  the  individual  has  previously  earned
 4    creditable  service  under  this  Article, (2) the individual
 5    files with the System an irrevocable  election  to  become  a
 6    participant,  and  (3) the individual does not receive credit
 7    for that employment under any other Article of this Code.  An
 8    employee under this subsection (i) is responsible for  paying
 9    to  the  System  both (A) employee contributions based on the
10    actual compensation received for  service  with  the  teacher
11    organization  and  (B)  employer  contributions  equal to the
12    normal costs (as defined in Section  15-155)  resulting  from
13    that  service;  all or any part of these contributions may be
14    paid on the employee's behalf or picked up for  tax  purposes
15    (if   authorized   under   federal   law)   by   the  teacher
16    organization.
17        A person who is an employee as defined in this subsection
18    (i) may establish service credit for similar employment prior
19    to becoming an employee under this subsection  by  paying  to
20    the System for that employment the contributions specified in
21    this subsection, plus interest at the effective rate from the
22    date  of  service  to  the  date of payment.  However, credit
23    shall not be granted under this subsection for any such prior
24    employment for which the applicant received credit under  any
25    other  provision  of this Code, or during which the applicant
26    was on a leave of absence under Section 15-113.2.
27    (Source: P.A. 89-430, eff. 12-15-95;  90-448,  eff.  8-16-97;
28    90-576, eff. 3-31-98; 90-766, eff. 8-14-98.)

29        (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
30        Sec.  15-111.   Earnings.  "Earnings": An amount paid for
31    personal services equal to the sum of the basic  compensation
32    plus  extra  compensation  for  summer  teaching, overtime or
33    other extra service.   For  periods  for  which  an  employee
 
                            -97-           LRB9101658EGfgam01
 1    receives  service  credit  under  subsection  (c)  of Section
 2    15-113.1 or Section 15-113.2, earnings are equal to the basic
 3    compensation on which contributions are paid by the  employee
 4    during  such  periods.   Compensation for employment which is
 5    irregular, intermittent and temporary shall not be considered
 6    earnings, unless the participant is also  receiving  earnings
 7    from the employer as an employee under Section 15-107.
 8        With  respect to transition pay paid by the University of
 9    Illinois  to  a  person  who  was  a  participating  employee
10    employed  in  the  fire  department  of  the  University   of
11    Illinois's  Champaign-Urbana  campus immediately prior to the
12    elimination of that fire department:
13             (1)  "Earnings" includes transition pay paid to  the
14        employee   on   or  after  the  effective  date  of  this
15        amendatory Act of the 91st General Assembly.
16             (2)  "Earnings" includes transition pay paid to  the
17        employee before the effective date of this amendatory Act
18        of  the  91st  General  Assembly  only  if  (i)  employee
19        contributions  under  Section  15-157  have been withheld
20        from that transition pay or (ii) the employee pays to the
21        System before January  1,  2001  an  amount  representing
22        employee  contributions  under  Section  15-157  on  that
23        transition  pay.   Employee contributions under item (ii)
24        may be paid in a lump sum, by withholding from additional
25        transition pay accruing before January 1, 2001, or in any
26        other manner approved by the System.  Upon payment of the
27        employee   contributions   on   transition    pay,    the
28        corresponding employer contributions become an obligation
29        of the State.
30    (Source: P.A. 87-8.)

31        (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
32        Sec.  15-112.   Final  rate  of earnings.  "Final rate of
33    earnings":  For an employee who is paid on an hourly basis or
 
                            -98-           LRB9101658EGfgam01
 1    who receives an  annual  salary  in  installments  during  12
 2    months  of  each  academic  year, the average annual earnings
 3    during the 48 consecutive calendar month period  ending  with
 4    the  last  day  of  final  termination of employment or the 4
 5    consecutive academic years of service in which the employee's
 6    earnings were the highest, whichever is  greater.    For  any
 7    other  employee,  the  average  annual  earnings during the 4
 8    consecutive academic years of service in  which  his  or  her
 9    earnings were the highest.  For an employee with less than 48
10    months  or  4  consecutive  academic  years  of  service, the
11    average earnings during his or her entire period of service.
12    The earnings of an employee  with  more  than  36  months  of
13    service  prior to the date of becoming a participant are, for
14    such period, considered equal to the average earnings  during
15    the last 36 months of such service.  For an employee on leave
16    of  absence  with pay, or on leave of absence without pay who
17    makes contributions during such leave, earnings  are  assumed
18    to  be  equal to the basic compensation on the date the leave
19    began.  For an employee on  disability  leave,  earnings  are
20    assumed  to  be  equal  to the basic compensation on the date
21    disability occurs or  the  average  earnings  during  the  24
22    months  immediately  preceding  the month in which disability
23    occurs, whichever is greater.
24        For a participant who retires on or after  the  effective
25    date of this amendatory Act of 1997 with at least 20 years of
26    service  as  a  firefighter  or  police  officer  under  this
27    Article,  the final rate of earnings shall be the annual rate
28    of earnings received by the participant on his  or  her  last
29    day as a firefighter or police officer under this Article, if
30    that is greater than the final rate of earnings as calculated
31    under the other provisions of this Section.
32        If  a  participant  is  an employee for at least 6 months
33    during the academic year in which his or  her  employment  is
34    terminated, the annual final rate of earnings shall be 25% of
 
                            -99-           LRB9101658EGfgam01
 1    the  sum  of (1) the annual basic compensation for that year,
 2    and (2) the amount earned during the  36  months  immediately
 3    preceding  that  year, if this is greater than the final rate
 4    of earnings as calculated under the other provisions of  this
 5    Section.
 6        In the determination of the final rate of earnings for an
 7    employee,  that  part  of  an  employee's  earnings  for  any
 8    academic  year  beginning  after June 30, 1997, which exceeds
 9    the employee's earnings with that employer for the  preceding
10    year  by more than 20 percent shall be excluded; in the event
11    that an employee has more than one employer  this  limitation
12    shall  be  calculated  separately  for the earnings with each
13    employer.   In  making  such  calculation,  only  the   basic
14    compensation of employees shall be considered, without regard
15    to   vacation   or   overtime  or  to  contracts  for  summer
16    employment.
17        The  following  are  not  considered   as   earnings   in
18    determining  final  rate of earnings: severance or separation
19    pay, retirement pay, payment in lieu of unused sick leave and
20    payments from an employer for the period used in  determining
21    final  rate  of  earnings for any purpose other than services
22    rendered, leave of absence or vacation  granted  during  that
23    period,  and  vacation  of  up  to  56 work days allowed upon
24    termination of employment  under  a  vacation  policy  of  an
25    employer which was in effect on or before January 1, 1977.
26        Intermittent  periods  of  service shall be considered as
27    consecutive in determining final rate of earnings.
28    (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)

29        (40 ILCS 5/15-120) (from Ch. 108 1/2, par. 15-120)
30        Sec.  15-120.   Beneficiary;  survivor  annuitant   under
31    portable   benefit  package.  "Beneficiary":  The  person  or
32    persons designated by the participant  or  annuitant  in  the
33    last  written  designation  on  file with the board; or if no
 
                            -100-          LRB9101658EGfgam01
 1    person so designated survives, or if  no  designation  is  on
 2    file,  the estate of the participant or annuitant. Acceptance
 3    by the participant of a refund of  accumulated  contributions
 4    shall  result in cancellation of all beneficiary designations
 5    previously filed. A spouse whose marriage was dissolved shall
 6    be  disqualified  as  beneficiary  unless  the   spouse   was
 7    designated  as  beneficiary  after  the effective date of the
 8    dissolution of marriage.
 9        After a joint and survivor annuity  commences  under  the
10    portable  benefit  package, the survivor annuitant of a joint
11    and survivor annuity is not  disqualified,  and  may  not  be
12    removed,  as  the  survivor annuitant by a dissolution of the
13    survivor's marriage with the participant or annuitant.
14    (Source: P.A. 83-1440.)

15        (40 ILCS 5/15-132.2 new)
16        Sec. 15-132.2.  Retire  and  retirement.   A  participant
17    "retires",  and  his  or her "retirement" begins, when his or
18    her annuity payment period begins.

19        (40 ILCS 5/15-134.5)
20        Sec. 15-134.5.  Retirement program elections.
21        (a)  All participating employees are  participants  under
22    the traditional benefit package prior to January 1, 1998.
23        Effective  as  of  the  date  that an employer elects, as
24    described in Section 15-158.2, to offer to its employees  the
25    portable   benefit  package  and  the  self-managed  plan  as
26    alternatives to the traditional benefit package, each of that
27    employer's eligible employees (as defined in subsection  (b))
28    shall  be  given the choice to elect which retirement program
29    he or she wishes  to  participate  in  with  respect  to  all
30    periods  of  covered  employment  occurring  on and after the
31    effective date of the employee's  election.   The  retirement
32    program election made by an eligible employee must be made in
 
                            -101-          LRB9101658EGfgam01
 1    writing,  in  the manner prescribed by the System, and within
 2    the time period described in subsection (d) or (d-1).
 3        The employee election authorized by  this  Section  is  a
 4    one-time,  irrevocable  election.   If an employee terminates
 5    employment after making  the  election  provided  under  this
 6    subsection (a), then upon his or her subsequent re-employment
 7    with  an  employer  the original election shall automatically
 8    apply to him or her, provided that the  employer  is  then  a
 9    participating employer as described in Section 15-158.2.
10        An  eligible  employee  who  fails  to make this election
11    shall, by default, participate  in  the  traditional  benefit
12    package.
13        (b)  "Eligible employee" means an employee (as defined in
14    Section  15-107)  who is either a currently eligible employee
15    or a newly eligible employee.  For purposes of this  Section,
16    a  "currently  eligible  employee"  is  an  employee  who  is
17    employed  by  an  employer on the effective date on which the
18    employer offers to its employees the portable benefit package
19    and the self-managed plan as alternatives to the  traditional
20    benefit  package.  A "newly eligible employee" is an employee
21    who first becomes employed by an employer after the effective
22    date on which the employer offers its employees the  portable
23    benefit  package and the self-managed plan as alternatives to
24    the traditional benefit package. A  newly  eligible  employee
25    participates  in  the traditional benefit package until he or
26    she makes an election to participate in the portable  benefit
27    package  or  the  self-managed plan.  If an employee does not
28    elect to participate in the portable benefit package  or  the
29    self-managed plan, he or she shall continue to participate in
30    the traditional benefit package by default.
31        (c)  An  eligible  employee  who at the time he or she is
32    first eligible to make the election described  in  subsection
33    (a) does not have sufficient age and service to qualify for a
34    retirement   annuity   under  Section  15-135  may  elect  to
 
                            -102-          LRB9101658EGfgam01
 1    participate in the traditional benefit package, the  portable
 2    benefit  package,  or  the  self-managed  plan.   An eligible
 3    employee who has sufficient age and service to qualify for  a
 4    retirement annuity under Section 15-135 at the time he or she
 5    is   first   eligible  to  make  the  election  described  in
 6    subsection (a) may elect to participate  in  the  traditional
 7    benefit  package or the portable benefit package, but may not
 8    elect to participate in the self-managed plan.
 9        (d)  A  currently  eligible  employee  must   make   this
10    election  within  one  year  after  the effective date of the
11    employer's adoption of the self-managed plan.
12        A newly eligible employee must make this election  within
13    6  months  after  the  date  on which the System receives the
14    report of status certification  from  the  employer  60  days
15    after becoming an eligible employee. If an employee elects to
16    participate   in   the   self-managed   plan,   no   employer
17    contributions shall be remitted to the self-managed plan when
18    the  employee's  account  balance transfer is made.  Employer
19    contributions to the self-managed plan shall commence  as  of
20    the  first  pay  period that begins after the System receives
21    the employee's election.
22        (d-1)  A  newly  eligible  employee  who,  prior  to  the
23    effective date of this amendatory Act  of  the  91st  General
24    Assembly,  fails  to  make  the  election  within  the period
25    provided under subsection (d) and participates by default  in
26    the  traditional  benefit package may make a late election to
27    participate  in  the  portable   benefit   package   or   the
28    self-managed  plan instead of the traditional benefit package
29    at any time within 6 months after the effective date of  this
30    amendatory  Act  of  the  91st General Assembly. The employer
31    shall not remit contributions to the System on  behalf  of  a
32    newly  eligible  employee until the earlier of the expiration
33    of the employee's 60-day election period or the date on which
34    the employee submits a properly  completed  election  to  the
 
                            -103-          LRB9101658EGfgam01
 1    employer or to the System.
 2        (e)  If  a  currently  an  eligible  employee  elects the
 3    portable benefit package,  that  election  shall  not  become
 4    effective until the one-year anniversary of the date on which
 5    the  election is filed with the System, provided the employee
 6    remains continuously employed by the employer throughout  the
 7    one-year  waiting  period,  and any benefits payable to or on
 8    account of the employee before such one-year  waiting  period
 9    has  ended  shall  not  be  determined  under  the provisions
10    applicable to the portable benefit package but shall  instead
11    be  determined  in  accordance  with  the traditional benefit
12    package.  If a currently an eligible employee who has elected
13    the portable benefit package terminates employment covered by
14    the System before the one-year waiting period has ended, then
15    no benefits shall be determined under  the  portable  benefit
16    package  provisions while he or she is inactive in the System
17    and upon re-employment with an employer covered by the System
18    he or she shall begin a new one-year  waiting  period  before
19    the   provisions  of  the  portable  benefit  package  become
20    effective.
21        (f)  An eligible employee shall be provided with  written
22    information  prepared  or  prescribed  by  the  System  which
23    describes  the  employee's  retirement  program choices.  The
24    eligible employee shall be offered an opportunity to  receive
25    counseling  from  the  System  prior  to  making  his  or her
26    election.   This  counseling  may   consist   of   videotaped
27    materials,  group presentations, individual consultation with
28    an employee or authorized representative  of  the  System  in
29    person  or  by  telephone  or  other electronic means, or any
30    combination of these methods.
31    (Source: P.A. 90-766, eff. 8-14-98.)

32        (40 ILCS 5/15-136.4)
33        Sec. 15-136.4. Retirement  and  Survivor  Benefits  Under
 
                            -104-          LRB9101658EGfgam01
 1    Portable Benefit Package.
 2        (a)  This  Section 15-136.4 describes the form of annuity
 3    and survivor benefits available  to  a  participant  who  has
 4    elected  the  portable  benefit package and has completed the
 5    one-year waiting period  required  under  subsection  (e)  of
 6    Section  15-134.5.   For  purposes  of this Section, the term
 7    "eligible spouse" means the husband or wife of a  participant
 8    to   whom   the  participant  is  married  on  the  date  the
 9    participant's retirement annuity  begins,  provided  however,
10    that  if the participant should die prior to the commencement
11    of retirement annuity benefits, then "eligible spouse"  means
12    the  husband  or  wife,  if  any, to whom the participant was
13    married throughout the one-year period preceding the date  of
14    his or her death.
15        (b)  This  subsection  (b)  describes  the normal form of
16    annuity payable to a  participant  subject  to  this  Section
17    15-136.4.  If the participant is unmarried on the date his or
18    her  annuity  payments  commence,  then  the annuity payments
19    shall be made  in  the  form  of  a  single-life  annuity  as
20    described  in  Section 15-118.  If the participant is married
21    on the date his or her annuity payments  commence,  then  the
22    annuity  payments  shall  be  paid in the form of a qualified
23    joint and survivor annuity that is the  actuarial  equivalent
24    of  the  single-life annuity.  Under the "qualified joint and
25    survivor annuity", a reduced amount  shall  be  paid  to  the
26    participant  for  his or her lifetime and his or her eligible
27    spouse, if surviving at the  participant's  death,  shall  be
28    entitled   to  receive  thereafter  a  lifetime  survivorship
29    annuity in a monthly amount  equal  to  50%  of  the  reduced
30    monthly amount that was payable to the participant.  The last
31    payment  of  a  qualified joint and survivor annuity shall be
32    made as of the first day of the month in which the  death  of
33    the survivor occurs.
34        (c)  Instead  of the normal form of annuity that would be
 
                            -105-          LRB9101658EGfgam01
 1    paid under subsection (b), a participant may elect in writing
 2    within the 90-day period prior to the date his or her annuity
 3    payments commence to waive the normal form of annuity payment
 4    and receive an optional  form  of  annuity  as  described  in
 5    subsection  (h).  If the participant is married and elects an
 6    optional form of annuity under subsection (h)  other  than  a
 7    joint   and   survivor   annuity  with  the  eligible  spouse
 8    designated as the contingent annuitant,  then  such  election
 9    shall  require  the  consent of his or her eligible spouse in
10    the manner described in subsection (d).  At any  time  during
11    the  90-day  period  preceding  the  date  the  participant's
12    annuity  commences,  the  participant may revoke the optional
13    form elected under this subsection (c) and reinstate coverage
14    under the qualified joint and survivor  annuity  without  the
15    spouse's consent, but an election to revoke the optional form
16    elected  and  elect  a  new  optional  form  or  designate  a
17    different contingent annuitant shall not be effective without
18    the eligible spouse's consent.
19        (d)   The  eligible spouse's consent to any election made
20    pursuant to this Section that requires the eligible  spouse's
21    consent  shall be in writing and shall acknowledge the effect
22    of the consent.  In addition, the eligible spouse's signature
23    on the written consent must be witnessed by a notary  public.
24    The  eligible  spouse's  consent  need not be obtained if the
25    system is satisfied that there is no  eligible  spouse,  that
26    the  eligible  spouse  cannot  be  located, or because of any
27    other relevant circumstances.  An eligible  spouse's  consent
28    under  this  Section  is  valid  only  with  respect  to  the
29    specified  optional  form  of  payment  and,  if  applicable,
30    contingent  annuitant  designated by the participant.  If the
31    optional form of  payment  or  the  contingent  annuitant  is
32    subsequently  changed  (other  than  by  a  revocation of the
33    optional form and reinstatement of the  qualified  joint  and
34    survivor  annuity),  a  new consent by the eligible spouse is
 
                            -106-          LRB9101658EGfgam01
 1    required.  The eligible spouse's consent to an election  made
 2    by a participant pursuant to this Section, once made, may not
 3    be revoked by the eligible spouse.
 4        (e)   Within  a  reasonable  period of time preceding the
 5    date a participant's annuity commences, a  participant  shall
 6    be  supplied  with a written explanation of (1) the terms and
 7    conditions  of  the  normal  form  single-life  annuity   and
 8    qualified  joint  and survivor annuity, (2) the participant's
 9    right to elect a single-life annuity or an optional  form  of
10    payment  under  subsection (h) subject to his or her eligible
11    spouse's consent, if applicable, and  (3)  the  participant's
12    right  to  reinstate  coverage  under the qualified joint and
13    survivor annuity prior to his  or  her  annuity  commencement
14    date  by  revoking an election of an optional form of benefit
15    under subsection (h).
16        (f)  If a married participant with at least 1.5  years  5
17    years  of service dies prior to commencing retirement annuity
18    payments and prior to taking a refund under  Section  15-154,
19    his   or  her  eligible  spouse  is  entitled  to  receive  a
20    pre-retirement survivor annuity, if  there  is  not  then  in
21    effect  a waiver of the pre-retirement survivor annuity.  The
22    pre-retirement survivor annuity payable under this subsection
23    shall be a monthly annuity payable for the eligible  spouse's
24    life,  commencing  as  of  the  beginning  of  the month next
25    following the later of the date of the participant's death or
26    the date the participant would have first met the eligibility
27    requirements  for  retirement,  and  continuing  through  the
28    beginning of the month in which the  death  of  the  eligible
29    spouse  occurs.   The  monthly  amount  payable to the spouse
30    under the pre-retirement survivor annuity shall be  equal  to
31    the  monthly  amount  that  would  be  payable  as a survivor
32    annuity  under  the  qualified  joint  and  survivor  annuity
33    described in  subsection  (b)  if:  (1)  in  the  case  of  a
34    participant  who  dies  on  or  after  the  date on which the
 
                            -107-          LRB9101658EGfgam01
 1    participant  has  met  the   eligibility   requirements   for
 2    retirement,  the  participant  had  retired with an immediate
 3    qualified joint and survivor annuity on the  day  before  the
 4    participant's  date   of  death;  or  (2)  in  the  case of a
 5    participant who dies before the earliest date  on  which  the
 6    participant  would  have met the eligibility requirements for
 7    retirement age, the participant had separated from service on
 8    the date of death, survived to the  earliest  retirement  age
 9    based  on  service prior to his or her death, retired with an
10    immediate  qualified  joint  and  survivor  annuity  at   the
11    earliest retirement age, and died on the day after the day on
12    which  the  participant  would  have  attained  the  earliest
13    retirement age.
14        (g)  A  married participant who has not retired may elect
15    at any time to  waive  the  pre-retirement  survivor  annuity
16    described in subsection (f).  Any such election shall require
17    the  consent  of  the  participant's  eligible  spouse in the
18    manner  described  in  subsection  (e).   A  waiver  of   the
19    pre-retirement  survivor  annuity shall increase the lump sum
20    death benefit payable under subsection (b) of Section 15-141.
21    Prior to electing any waiver of the  pre-retirement  survivor
22    annuity,  the  participant  shall  be provided with a written
23    explanation  of  (1)  the  terms  and   conditions   of   the
24    pre-retirement   survivor  annuity  and  the  death  benefits
25    payable  from  the  system  both   with   and   without   the
26    pre-retirement  survivor annuity, (2) the participant's right
27    to elect a waiver  of  the  pre-retirement  survivor  annuity
28    coverage  subject to his or her spouse's consent, and (3) the
29    participant's  right  to  reinstate  pre-retirement  survivor
30    annuity coverage at any time by revoking a  prior  waiver  of
31    such coverage.
32        (h)  By  filing  a  timely  election  with  the system, a
33    participant who will be  eligible  to  receive  a  retirement
34    annuity  under  this  Section  may  waive  the normal form of
 
                            -108-          LRB9101658EGfgam01
 1    annuity payment  described  in  subsection  (b),  subject  to
 2    obtaining  the  consent  of  his  or  her eligible spouse, if
 3    applicable, and elect to receive any  one  of  the  following
 4    optional annuity forms:
 5             (1)   Joint   and  Survivor  Annuity  Options:   The
 6        participant  may  elect  to  receive  a  reduced  annuity
 7        payable for his or  her  life  and  to  have  a  lifetime
 8        survivorship  annuity  in  a monthly amount equal to 50%,
 9        75%, or 100% (as elected  by  the  participant)  of  that
10        reduced   monthly   amount,   to   be   paid   after  the
11        participant's death to his or her  contingent  annuitant,
12        if  the  contingent annuitant is alive at the time of the
13        participant's death.
14             (2)  Single-Life  Annuity   Option   (optional   for
15        married  participants).   The  participant  may  elect to
16        receive a single-life annuity payable for his or her life
17        only.
18             (3)  Lump sum retirement  benefit.  The  participant
19        may  elect  to receive a lump sum retirement benefit that
20        is equal to the amount of a refund payable under  Section
21        15-154(a-2).
22    All  optional annuity forms shall be in an amount that is the
23    actuarial equivalent of the single-life annuity.
24        For the purposes of this Section,  the  term  "contingent
25    annuitant"  means  the  beneficiary  who  is  designated by a
26    participant at the time the participant elects  a  joint  and
27    survivor annuity to receive the lifetime survivorship annuity
28    in  the event the beneficiary survives the participant at the
29    participant's death.
30        (i)  Under no circumstances may  an  option  be  elected,
31    changed,   or   revoked  after  the  date  the  participant's
32    retirement annuity commences.
33        (j)  An election made pursuant to  subsection  (h)  shall
34    become  inoperative  if  the  participant  or  the contingent
 
                            -109-          LRB9101658EGfgam01
 1    annuitant dies before  the  date  the  participant's  annuity
 2    payments  commence,  or  if  the eligible spouse's consent is
 3    required and not given.
 4        (k)  (Blank). For purposes of applying the provisions  of
 5    Section  20-123  of  this  Code, the portable benefit package
 6    shall be treated as if it were provided  by  a  participating
 7    system that has no survivor's annuity benefit.
 8        (l)  The   automatic   annual   increases   described  in
 9    subsection (d) of Section 15-136 shall  apply  to  retirement
10    benefits under the portable benefit package and the automatic
11    annual  increases  described  in  subsection  (j)  of Section
12    15-145 shall apply to survivor benefits  under  the  portable
13    benefit package.
14    (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)

15        (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
16        Sec.   15-139.    Retirement   annuities;   cancellation;
17    suspended during employment.
18        (a)  If   an  annuitant  returns  to  employment  for  an
19    employer within 60 days after the beginning of the retirement
20    annuity payment  period,  the  retirement  annuity  shall  be
21    cancelled,  and  the annuitant shall refund to the System the
22    total amount of the retirement annuity payments which  he  or
23    she  received.  If  the  retirement annuity is cancelled, the
24    participant shall continue to participate in the System.
25        (b)  If an annuitant retires prior to age 60 and receives
26    or becomes entitled to receive during any month  compensation
27    in  excess  of  the monthly retirement annuity (including any
28    automatic annual increases) for services performed after  the
29    date  of  retirement  for any employer under this System, the
30    State  Employees'  Retirement  System  of  Illinois,  or  the
31    Teachers' Retirement System of the State  of  Illinois,  that
32    portion   of  the  monthly  retirement  annuity  provided  by
33    employer contributions shall not be payable.
 
                            -110-          LRB9101658EGfgam01
 1        If an annuitant retires at age 60 or over and receives or
 2    becomes  entitled  to  receive  during  any   academic   year
 3    compensation  in  excess of the difference between his or her
 4    highest annual earnings prior to retirement and  his  or  her
 5    annual retirement annuity computed under Rule 1, Rule 2, Rule
 6    3 or Rule 4 of Section 15-136, or under Section 15-136.4, for
 7    services  performed  after  the  date  of  retirement for any
 8    employer under this  System,  that  portion  of  the  monthly
 9    retirement  annuity  provided by employer contributions shall
10    be reduced by  an  amount  equal  to  the  compensation  that
11    exceeds such difference.
12        However,  any  remuneration  received  for  serving  as a
13    member of the  Illinois  Educational  Labor  Relations  Board
14    shall  be  excluded  from  "compensation" for the purposes of
15    this subsection (b), and serving as a member of the  Illinois
16    Educational Labor Relations Board shall not be deemed to be a
17    return  to  employment for the purposes of this Section. This
18    provision applies  without  regard  to  whether  service  was
19    terminated prior to the effective date of this amendatory Act
20    of 1991.
21        (c)  If  an employer certifies that an annuitant has been
22    reemployed on a  permanent  and  continuous  basis  or  in  a
23    position  in  which the annuitant is expected to serve for at
24    least 9 months, the annuitant shall resume his or her  status
25    as  a  participating  employee  and  shall be entitled to all
26    rights applicable to participating employees upon filing with
27    the board an election to forego all annuity  payments  during
28    the  period  of reemployment. Upon subsequent retirement, the
29    retirement annuity shall consist of  the  annuity  which  was
30    terminated   by   the   reemployment,   plus  the  additional
31    retirement annuity based  upon  service  granted  during  the
32    period  of  reemployment, but the combined retirement annuity
33    shall not exceed the maximum annuity applicable on  the  date
34    of the last retirement.
 
                            -111-          LRB9101658EGfgam01
 1        The  total service and earnings credited before and after
 2    the  initial  date  of  retirement  shall  be  considered  in
 3    determining eligibility of the  employee  or  the  employee's
 4    beneficiary   to   benefits   under   this  Article,  and  in
 5    calculating final rate of earnings.
 6        In determining the death benefit payable to a beneficiary
 7    of an annuitant who again becomes  a  participating  employee
 8    under   this   Section,  accumulated  normal  and  additional
 9    contributions  shall  be  considered  as  the  sum   of   the
10    accumulated  normal  and additional contributions at the date
11    of  initial  retirement  and  the  accumulated   normal   and
12    additional  contributions  credited after that date, less the
13    sum of the annuity payments received by the annuitant.
14        The survivors insurance benefits provided  under  Section
15    15-145  shall  not  be applicable to an annuitant who resumes
16    his or her status as a  participating  employee,  unless  the
17    annuitant, at the time of initial retirement, has a survivors
18    insurance beneficiary who could qualify for such benefits.
19        If  the  annuitant's  employment is terminated because of
20    circumstances other than death before 9 months from the  date
21    of  reemployment,  the  provisions  of this Section regarding
22    resumption of status as a participating  employee  shall  not
23    apply. The normal and survivors insurance contributions which
24    are  deducted  during  this  period  shall be refunded to the
25    annuitant without interest,  and  subsequent  benefits  under
26    this Article shall be the same as those which were applicable
27    prior to the date the annuitant resumed employment.
28        The  amendments  made  to this Section by this amendatory
29    Act of the 91st General  Assembly  apply  without  regard  to
30    whether  the  annuitant  was  in  service  on  or  after  the
31    effective date of this amendatory Act.
32    (Source: P.A. 86-1488.)

33        (40 ILCS 5/15-140) (from Ch. 108 1/2, par. 15-140)
 
                            -112-          LRB9101658EGfgam01
 1        Sec.  15-140.   Reversionary annuities.  A participant in
 2    the traditional benefit  package  entitled  to  a  retirement
 3    annuity  may,  prior  to  retirement, elect to take a reduced
 4    retirement annuity and provide with the  actuarial  value  of
 5    the   reduction,   a  reversionary  annuity  to  a  dependent
 6    beneficiary, subject to the  following  conditions:  (1)  the
 7    participant's  written  notice  of  election  to provide such
 8    annuity is received by the board at least 30 days before  the
 9    retirement  annuity payment period begins, and (2) the amount
10    of the reversionary annuity is not less than $10  per  month,
11    and  (3)  the  reversionary  annuity  is  payable only if the
12    participant dies after retirement.
13        The participant may  revoke  the  election  by  filing  a
14    written   notice   of   revocation   with   the   board.  The
15    beneficiary's death prior to retirement  of  the  participant
16    shall constitute a revocation of the election.
17        The  amount  of  the  reversionary  annuity shall be that
18    specified in the participant's notice of  election,  but  not
19    more  than  the  amount  which  when  added  to the survivors
20    annuity payable to the dependent beneficiary, would equal the
21    participant's reduced retirement annuity.    The  participant
22    shall  specify  in  the  notice  of election whether the full
23    retirement annuity is to be resumed or the reduced retirement
24    annuity is to be continued,  in  the  event  the  beneficiary
25    predeceases the annuitant.
26        The  reversionary  annuity  payment period shall begin on
27    the day  following  the  annuitant's  death.  A  reversionary
28    annuity  shall  not be payable if the beneficiary predeceases
29    the annuitant.
30    (Source: P.A. 84-1028.)

31        (40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
32        Sec. 15-141. Death benefits - Death of participant.
33        (a)  The  beneficiary  of   a   participant   under   the
 
                            -113-          LRB9101658EGfgam01
 1    traditional  benefit  package  is entitled to a death benefit
 2    equal to the sum of (1) the employee's accumulated normal and
 3    additional contributions  on  the  date  of  death,  (2)  the
 4    employee's  accumulated  survivors insurance contributions on
 5    the date of death, if a survivors insurance  benefit  is  not
 6    payable,  (3) an amount equal to the employee's final rate of
 7    earnings, but not more than $5,000 if  (i)  the  beneficiary,
 8    under rules of the board, was dependent upon the participant,
 9    (ii) the participant was a participating employee immediately
10    prior  to  his  or her death, and (iii) a survivors insurance
11    benefit is not payable, and (4) $2,500 if (i) the beneficiary
12    was not dependent upon the participant, (ii) the  participant
13    was  a participating employee immediately prior to his or her
14    death,  and  (iii)  a  survivors  insurance  benefit  is  not
15    payable.
16        (b)  If the participant has elected to participate in the
17    portable benefit  package  and  has  completed  the  one-year
18    waiting  period  required  under  subsection  (e)  of Section
19    15-134.5, the death benefit shall be equal to the  employee's
20    accumulated  normal  and additional contributions on the date
21    of death plus, if the employee died with 1.5  or  5  or  more
22    years  of  service  for  employment  as  defined  in  Section
23    15-113.1,  employer  contributions  in an amount equal to the
24    sum of the accumulated normal and  additional  contributions;
25    except  that  if a pre-retirement survivor annuity is payable
26    under Section 15-136.4, the death benefit payable under  this
27    paragraph shall be reduced, but to not less than zero, by the
28    actuarial  value  of  the  benefit  payable  to the surviving
29    spouse.   If  the  recipient  of  a  pre-retirement  survivor
30    annuity dies before an amount equal to all accumulated normal
31    and additional contributions as of the  date  of  death  have
32    been  paid out, the remaining difference shall be paid to the
33    member's  beneficiary.   The  primary  beneficiary   of   the
34    participant  must  be his or her spouse unless the spouse has
 
                            -114-          LRB9101658EGfgam01
 1    consented to the designation of another  beneficiary  in  the
 2    manner described in subsection (d) of Section 15-136.4.
 3        (c)  If  payments  are  made  under  any State or federal
 4    workers' compensation or occupational diseases law because of
 5    the death of an employee, the portion of  the  death  benefit
 6    payable  from  employer contributions shall be reduced by the
 7    total amount of the payments.
 8    (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)

 9        (40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142)
10        Sec. 15-142.  Death benefits - Death of annuitant.   Upon
11    the  death  of an annuitant receiving a retirement annuity or
12    disability retirement annuity,  the  annuitant's  beneficiary
13    shall, if a survivor's insurance benefit is not payable under
14    Section  15-145  and  an a pre-retirement survivor annuity is
15    not payable under Section 15-136.4, be entitled  to  a  death
16    benefit  equal  to  the  greater  of  the  following: (1) the
17    excess, if  any,  of  the  sum  of  the  accumulated  normal,
18    survivors  insurance,  and additional contributions as of the
19    date of retirement or  the  date  the  disability  retirement
20    annuity  began,  whichever  is  earlier,  over the sum of all
21    annuity payments made prior to the  date  of  death,  or  (2)
22    $1,000.
23    (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)

24        (40 ILCS 5/15-144) (from Ch. 108 1/2, par. 15-144)
25        Sec.   15-144.    Beneficiary  annuities.   This  Section
26    applies only to the death  benefits  of  persons  who  became
27    participants  before  August  22, 1997 (the effective date of
28    Public Act 90-511).
29        If a deceased participant  has  specified  in  a  written
30    notice  on  file with the board prior to his or her death, or
31    if the participant has not so specified, but the  beneficiary
32    specifies  in  the application for the death benefit that the
 
                            -115-          LRB9101658EGfgam01
 1    benefit be paid as an annuity or as a designated cash payment
 2    plus an  annuity,  it  shall  be  paid  in  the  manner  thus
 3    specified,  unless the annuity is less than $10 per month, in
 4    which case the death benefit shall be paid in a  single  cash
 5    sum.   If  the  death  benefit  is  paid  as  an annuity, the
 6    beneficiary may elect to take an amount not in excess of $500
 7    in a single cash sum. The annuity payable  to  a  beneficiary
 8    shall  be  the  actuarial  equivalent  of  the death benefit,
 9    determined as of the participant's  date  of  death,  on  the
10    basis of the age of the beneficiary at that time.
11        The beneficiary annuity payment period shall begin on the
12    day  following  the death of the deceased and shall terminate
13    on the date of the beneficiary's death.  If  the  beneficiary
14    may  receive  the  death  benefit  in  a single cash sum, but
15    elects to receive an annuity, he or she may, within one  year
16    after  the death of the participant or annuitant, revoke this
17    election and receive in a single cash sum the excess  of  the
18    amount  of the death benefit upon which the annuity was based
19    over the sum of the annuity payments received.
20    (Source: P.A. 83-1440.)

21        (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
22        Sec. 15-145.  Survivors  insurance  benefits;  conditions
23    and amounts.
24        (a)  The survivors insurance benefits provided under this
25    Section  shall  be  payable  to  the  eligible survivors of a
26    participant covered under  the  traditional  benefit  package
27    upon  the death of (1) a participating employee with at least
28    1 1/2 years of service,  (2)  a  participant  who  terminated
29    employment  with  at  least  10  years of service, and (3) an
30    annuitant in receipt of a retirement  annuity  or  disability
31    retirement annuity under this Article.
32        Service  under  the State Employees' Retirement System of
33    Illinois, the Teachers' Retirement System  of  the  State  of
 
                            -116-          LRB9101658EGfgam01
 1    Illinois   and   the  Public  School  Teachers'  Pension  and
 2    Retirement Fund of Chicago shall be considered in determining
 3    eligibility for survivors benefits under this Section.
 4        If by law, a function of a governmental unit, as  defined
 5    by  Section  20-107, is transferred in whole or in part to an
 6    employer, and an  employee  transfers  employment  from  this
 7    governmental  unit to such employer within 6 months after the
 8    transfer  of  this  function,  the  service  credits  in  the
 9    governmental  unit's  retirement  system  which   have   been
10    validated   under  Section  20-109  shall  be  considered  in
11    determining eligibility for  survivors  benefits  under  this
12    Section.
13        (b)  A  surviving spouse of a deceased participant, or of
14    a deceased annuitant who did not take a refund or  additional
15    annuity   consisting   of   accumulated  survivors  insurance
16    contributions who had a survivors  insurance  beneficiary  at
17    the  time of retirement, shall receive a survivors annuity of
18    30% of the final rate of earnings.  Payments shall  begin  on
19    the  day  following the participant's or annuitant's death or
20    the date the surviving spouse attains age  50,  whichever  is
21    later,  and continue until the death of the surviving spouse.
22    The annuity shall be payable to the surviving spouse prior to
23    attainment of age 50 if the surviving spouse has  in  his  or
24    her  care  a  deceased participant's or annuitant's dependent
25    unmarried child under age 18 (under age  22  if  a  full-time
26    student) who is eligible for a survivors annuity.  Remarriage
27    of  a  surviving  spouse  prior  to attainment of age 55 that
28    occurs before the effective date of this  amendatory  Act  of
29    the 91st General Assembly shall disqualify him or her for the
30    receipt of a survivors annuity.
31        (c)  Each  dependent  unmarried child under age 18 (under
32    age 22 if a full-time student) of a deceased participant,  or
33    of  a  deceased  annuitant  who  did  not  take  a  refund or
34    additional  annuity  consisting  of   accumulated   survivors
 
                            -117-          LRB9101658EGfgam01
 1    insurance   contributions   who  had  a  survivors  insurance
 2    beneficiary at the time  of  his  or  her  retirement,  shall
 3    receive  a  survivors  annuity equal to the sum of (1) 20% of
 4    the final rate of earnings, and (2) 10% of the final rate  of
 5    earnings  divided  by the number of children entitled to this
 6    benefit.  Payments shall  begin  on  the  day  following  the
 7    participant's  or  annuitant's  death  and continue until the
 8    child marries, dies, or attains age 18 (age 22 if a full-time
 9    student).  If the child is in the care of a surviving  spouse
10    who is eligible for survivors insurance benefits, the child's
11    benefit shall be paid to the surviving spouse.
12        Each   unmarried   child   over  age  18  of  a  deceased
13    participant or of a deceased annuitant who had  a  survivor's
14    insurance  beneficiary  at the time of his or her retirement,
15    and who was dependent upon the participant  or  annuitant  by
16    reason  of  a physical or mental disability which began prior
17    to the date the child attained age 18 (age 22 if a  full-time
18    student), shall receive a survivor's annuity equal to the sum
19    of  (1) 20% of the final rate of earnings, and (2) 10% of the
20    final rate of earnings divided  by  the  number  of  children
21    entitled  to survivors benefits.  Payments shall begin on the
22    day following the  participant's  or  annuitant's  death  and
23    continue  until  the  child  marries,  dies,  or is no longer
24    disabled.  If the child is in the care of a surviving  spouse
25    who is eligible for survivors insurance benefits, the child's
26    benefit  may  be  paid  to  the  surviving  spouse.   For the
27    purposes of  this  Section,  disability  means  inability  to
28    engage  in  any substantial gainful activity by reason of any
29    medically determinable physical or mental impairment that can
30    be expected to result in death or that has lasted or  can  be
31    expected  to  last  for  a  continuous period of at least one
32    year.
33        (d)  Each dependent parent of a deceased participant,  or
34    of  a  deceased  annuitant  who  did  not  take  a  refund or
 
                            -118-          LRB9101658EGfgam01
 1    additional  annuity  consisting  of   accumulated   survivors
 2    insurance   contributions   who  had  a  survivors  insurance
 3    beneficiary at the time  of  his  or  her  retirement,  shall
 4    receive  a  survivors  annuity equal to the sum of (1) 20% of
 5    final rate of earnings, and (2) 10% of final rate of earnings
 6    divided by the number of parents who qualify for the benefit.
 7    Payments shall begin when the parent reaches age  55  or  the
 8    day   following   the  participant's  or  annuitant's  death,
 9    whichever is later,  and  continue  until  the  parent  dies.
10    Remarriage  of  a  parent prior to attainment of age 55 shall
11    disqualify the parent for the receipt of a survivors annuity.
12        (e)  In addition to the survivors annuity provided above,
13    each survivors insurance beneficiary shall, upon death of the
14    participant or annuitant,  receive  a  lump  sum  payment  of
15    $1,000 divided by the number of such beneficiaries.
16        (f)  The  changes  made  in  this  Section  by Public Act
17    81-712  pertaining  to  survivors  annuities  in   cases   of
18    remarriage  prior  to  age  55  shall apply to each survivors
19    insurance beneficiary who  remarries  after  June  30,  1979,
20    regardless  of  the  date  that  the participant or annuitant
21    terminated his employment or died.
22        The change made to this Section by this amendatory Act of
23    the 91st General Assembly, pertaining to remarriage prior  to
24    age  55,  applies  without  regard  to  whether  the deceased
25    participant or annuitant was  in  service  on  or  after  the
26    effective  date  of  this  amendatory Act of the 91st General
27    Assembly.
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
 
                            -119-          LRB9101658EGfgam01
 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
 
                            -120-          LRB9101658EGfgam01
 1    annuitant  terminates  before  the  effective  date  of  this
 2    amendatory  Act of 1990.  This subsection (j) also applies to
 3    persons receiving  a  survivor  annuity  under  the  portable
 4    benefit package.
 5        (k)  If  the  Internal  Revenue Code of 1986, as amended,
 6    requires that the survivors benefits be  payable  at  an  age
 7    earlier  than  that  specified  in  this Section the benefits
 8    shall  begin  at  the  earlier  age,  in  which  event,   the
 9    survivor's  beneficiary shall be entitled only to that amount
10    which is equal to the actuarial equivalent  of  the  benefits
11    provided by this Section.
12        (l)  The  changes made to this Section and Section 15-131
13    by this amendatory Act of  1997,  relating  to  benefits  for
14    certain  unmarried  children who are full-time students under
15    age 22, apply without regard to whether the  deceased  member
16    was  in  service  on  or  after  the  effective  date of this
17    amendatory Act of 1997.  These changes do not  authorize  the
18    repayment  of  a refund or a re-election of benefits, and any
19    benefit or increase in benefits resulting from these  changes
20    is  not  payable  retroactively  for  any  period  before the
21    effective date of this amendatory Act of 1997.
22    (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)

23        (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
24        Sec. 15-154.  Refunds.
25        (a)  A  participant  whose  status  as  an  employee   is
26    terminated,  regardless  of cause, or who has been on lay off
27    status for more than 120 days, and who is  not  on  leave  of
28    absence,  is  entitled  to  a  refund  of  contributions upon
29    application; except  that  not  more  than  one  such  refund
30    application may be made during any academic year.
31        Except  as  set forth in subsections (a-1) and (a-2), the
32    refund shall be the sum of the accumulated normal, additional
33    and survivors insurance contributions,  less  the  amount  of
 
                            -121-          LRB9101658EGfgam01
 1    interest  credited on these contributions each year in excess
 2    of 4 1/2% of the amount on which interest was calculated.
 3        (a-1)  A  person  who  elects,  in  accordance  with  the
 4    requirements of  Section  15-134.5,  to  participate  in  the
 5    portable  benefit  package  and  who  becomes a participating
 6    employee under that retirement program upon the conclusion of
 7    the  one-year  waiting  period  applicable  to  the  portable
 8    benefit  package  election  shall  have  his  or  her  refund
 9    calculated in accordance with the  provisions  of  subsection
10    (a-2).
11        (a-2)  The  refund  payable to a participant described in
12    subsection (a-1)  shall  be  the  sum  of  the  participant's
13    accumulated  normal  and additional contributions, as defined
14    in Sections 15-116 and 15-117.  If the participant terminates
15    with 5 or more years of service for employment as defined  in
16    Section  15-113.1,  he  or  she  shall  also be entitled to a
17    distribution of employer contributions in an amount equal  to
18    the   sum   of   the   accumulated   normal   and  additional
19    contributions, as defined in Sections 15-116 and 15-117.
20        (b)  Upon  acceptance  of  a  refund,   the   participant
21    forfeits all accrued rights and credits in the System, and if
22    subsequently  reemployed, the participant shall be considered
23    a new employee subject to all the qualifying  conditions  for
24    participation  and eligibility for benefits applicable to new
25    employees. If  such  person  again  becomes  a  participating
26    employee and continues as such for 2 years, or is employed by
27    an  employer  and  participates  for  at least 2 years in the
28    Federal Civil Service Retirement  System,  all  such  rights,
29    credits,  and  previous  status  as  a  participant  shall be
30    restored upon repayment of the amount of the refund, together
31    with compound interest thereon from the date the  refund  was
32    received to the date of repayment at the rate of 6% per annum
33    through  August  31,  1982,  and at the effective rates after
34    that date.
 
                            -122-          LRB9101658EGfgam01
 1        (c)  If  a  participant  covered  under  the  traditional
 2    transitional benefit package  has  made  survivors  insurance
 3    contributions,  but  has  no  survivors insurance beneficiary
 4    upon retirement, he or she  shall  be  entitled  to  elect  a
 5    refund  of the accumulated survivors insurance contributions,
 6    or to elect an additional annuity the value of which is equal
 7    to the accumulated survivors insurance  contributions.   This
 8    election  must  be  made  prior  to  the  date  the  person's
 9    retirement annuity is approved by the Board of Trustees.
10        (d)  A  participant,  upon  application, is entitled to a
11    refund of his or  her  accumulated  additional  contributions
12    attributable to the additional contributions described in the
13    last  sentence  of subsection (c) of Section 15-157. Upon the
14    acceptance  of  such  a  refund  of  accumulated   additional
15    contributions,   the  participant  forfeits  all  rights  and
16    credits which may have accrued because of such contributions.
17        (e)  A participant who terminates  his  or  her  employee
18    status  and  elects  to  waive  service  credit under Section
19    15-154.2, is entitled to a refund of the accumulated  normal,
20    additional  and  survivors  insurance  contributions, if any,
21    which were credited the participant for this service,  or  to
22    an  additional  annuity  the  value  of which is equal to the
23    accumulated  normal,  additional  and   survivors   insurance
24    contributions,  if  any;  except  that not more than one such
25    refund application may be made during any academic year. Upon
26    acceptance of  this  refund,  the  participant  forfeits  all
27    rights and credits accrued because of this service.
28        (f)  If  a  police  officer  or  firefighter  receives  a
29    retirement annuity under Rule 1 or 3 of Section 15-136, he or
30    she  shall  be  entitled  at  retirement  to  a refund of the
31    difference   between   his   or   her   accumulated    normal
32    contributions  and  the normal contributions which would have
33    accumulated had such person filed a waiver of the  retirement
34    formula provided by Rule 4 of Section 15-136.
 
                            -123-          LRB9101658EGfgam01
 1        (g)  If,  at  the time of retirement, a participant would
 2    be entitled to a retirement annuity under Rule 1, 2, 3  or  4
 3    of  Section  15-136, or under Section 15-136.4,  that exceeds
 4    the maximum specified in clause  (1)  of  subsection  (c)  of
 5    Section  15-136,  he  or she shall be entitled to a refund of
 6    the employee contributions, if any, paid under Section 15-157
 7    after the date upon which continuance of  such  contributions
 8    would  have otherwise caused the retirement annuity to exceed
 9    this maximum, plus compound interest at the effective rates.
10    (Source: P.A. 90-448, eff.  8-16-97;  90-576,  eff.  3-31-98;
11    90-766, eff. 8-14-98.)

12        (40 ILCS 5/15-158.2)
13        Sec. 15-158.2. Self-managed plan.
14        (a)  Purpose.   The  General  Assembly  finds  that it is
15    important for colleges and universities to be able to attract
16    and retain the most qualified employees and that in order  to
17    attract and retain these employees, colleges and universities
18    should have the flexibility to provide a defined contribution
19    plan  as  an alternative for eligible employees who elect not
20    to  participate  in  a  defined  benefit  retirement  program
21    provided  under  this  Article.    Accordingly,   the   State
22    Universities   Retirement  System  is  hereby  authorized  to
23    establish and administer a  self-managed  plan,  which  shall
24    offer  participating  employees the opportunity to accumulate
25    assets for retirement through a combination of  employee  and
26    employer  contributions that may be invested in mutual funds,
27    collective investment funds, or other investment products and
28    used to purchase annuity contracts, either fixed or  variable
29    or  a  combination thereof.  The plan must be qualified under
30    the Internal Revenue Code of 1986.
31        (b)  Adoption by employers.   Each  employer  subject  to
32    this  Article  may  elect  to  adopt  the  self-managed  plan
33    established under this Section; this election is irrevocable.
 
                            -124-          LRB9101658EGfgam01
 1    An  employer's  election to adopt the self-managed plan makes
 2    available to the eligible  employees  of  that  employer  the
 3    elections described in Section 15-134.5.
 4        The  State  Universities  Retirement  System shall be the
 5    plan sponsor for the self-managed plan and  shall  prepare  a
 6    plan  document and prescribe such rules and procedures as are
 7    considered necessary or desirable for the  administration  of
 8    the self-managed plan.  Consistent with its fiduciary duty to
 9    the  participants and beneficiaries of the self-managed plan,
10    the Board of Trustees of the System may delegate  aspects  of
11    plan administration as it sees fit to companies authorized to
12    do  business  in  this  State,  to  the  employers,  or  to a
13    combination of both.
14        (c)  Selection of service providers and funding vehicles.
15    The System, in consultation with the employers, shall solicit
16    proposals to  provide  administrative  services  and  funding
17    vehicles for the self-managed plan from insurance and annuity
18    companies  and mutual fund companies, banks, trust companies,
19    or other financial institutions authorized to do business  in
20    this   State.    In  reviewing  the  proposals  received  and
21    approving and contracting with no fewer than 2  and  no  more
22    than  7  companies, at least 2 of which must be insurance and
23    annuity companies, the Board of Trustees of the System  shall
24    consider, among other things, the following criteria:
25             (1)  the  nature  and  extent  of  the benefits that
26        would be provided to the participants;
27             (2)  the reasonableness of the benefits in  relation
28        to the premium charged;
29             (3)  the  suitability  of  the benefits to the needs
30        and interests of  the  participating  employees  and  the
31        employer;
32             (4)  the  ability of the company to provide benefits
33        under the contract and the  financial  stability  of  the
34        company; and
 
                            -125-          LRB9101658EGfgam01
 1             (5)  the efficacy of the contract in the recruitment
 2        and retention of employees.
 3        The  System,  in  consultation  with the employers, shall
 4    periodically review each approved  company.   A  company  may
 5    continue  to  provide  administrative  services  and  funding
 6    vehicles  for  the  self-managed  plan  only  so  long  as it
 7    continues to be an approved company under contract  with  the
 8    Board.
 9        (d)  Employee Direction.  Employees who are participating
10    in  the  program  must  be  allowed to direct the transfer of
11    their account balances among the various  investment  options
12    offered,  subject  to applicable contractual provisions.  The
13    participant shall not be deemed  a  fiduciary  by  reason  of
14    providing  such  investment  direction.   A  person  who is a
15    fiduciary shall not be liable for  any  loss  resulting  from
16    such  investment  direction  and  shall not be deemed to have
17    breached any fiduciary duty by acting in accordance with that
18    direction.  Neither the System nor  the  employer  guarantees
19    any of the investments in the employee's account balances.
20        (e)  Participation.   An employee eligible to participate
21    in the self-managed plan must  make  a  written  election  in
22    accordance  with  the  provisions of Section 15-134.5 and the
23    procedures established by the System.  Participation  in  the
24    self-managed  plan by an electing employee shall begin on the
25    first day of the first pay period following the later of  the
26    date  the employee's election is filed with the System or the
27    effective date as of which the employee's employer begins  to
28    offer  participation in the self-managed plan.  Employers may
29    not make the self-managed plan available earlier than January
30    1, 1998.  An employee's participation in any other retirement
31    program administered by the System under this  Article  shall
32    terminate  on the date that participation in the self-managed
33    plan begins.
34        An  employee  who  has  elected  to  participate  in  the
 
                            -126-          LRB9101658EGfgam01
 1    self-managed  plan   under   this   Section   must   continue
 2    participation while employed in an eligible position, and may
 3    not  participate in any other retirement program administered
 4    by the System under  this  Article  while  employed  by  that
 5    employer   or   any  other  employer  that  has  adopted  the
 6    self-managed plan, unless the self-managed plan is terminated
 7    in accordance with subsection (i).
 8        Participation in the self-managed plan under this Section
 9    shall  constitute  membership  in  the   State   Universities
10    Retirement System.
11        A participant under this Section shall be entitled to the
12    benefits  of Article 20 of this Code. modified to reflect the
13    following principles:
14             (1)  The amount of any retirement annuities  payable
15        under  this  Section  depend  solely  on the value of the
16        participant's vested account balances and are not subject
17        to a maximum annuity benefit limitation or any adjustment
18        pursuant   to   the   proportional   retirement   annuity
19        provisions of  Article  20.   If  a  participant  in  the
20        self-managed  plan under this Section elects to apply the
21        provisions of  Article  20,  the  dollar  amount  of  the
22        proportional  retirement  annuity payable from the System
23        shall be deemed to be zero  and  the  provisions  of  the
24        second  paragraph  of Section 20-131 shall not apply with
25        respect to the retirement annuity benefits payable to the
26        participant under this Section.
27             (2)  For purposes of Section 20-123  of  this  Code,
28        the  self-managed  plan  shall  be  treated as if it were
29        provided by a participating system that has no survivor's
30        annuity benefit.
31             (3)  Notwithstanding Section 20-125  of  this  Code,
32        upon  reemployment by a participating system of a retired
33        participant in  the  self-managed  plan,  the  retirement
34        annuity payment made to such participant from any annuity
 
                            -127-          LRB9101658EGfgam01
 1        contracts  acquired  from  the participant's self-managed
 2        plan account balances shall not be suspended.
 3        (f)  Establishment of Initial Account Balance.  If at the
 4    time an employee elects to participate  in  the  self-managed
 5    plan  he  or  she has rights and credits in the System due to
 6    previous participation in the  traditional  benefit  package,
 7    the  System  shall  establish  for  the  employee  an opening
 8    account balance in the self-managed plan, equal to the amount
 9    of contribution refund that the employee would be eligible to
10    receive under  Section  15-154  if  the  employee  terminated
11    employment   on   that   date   and   elected   a  refund  of
12    contributions, except that  this  hypothetical  refund  shall
13    include  interest  at  the  effective rate for the respective
14    years.  The System shall transfer  assets  from  the  defined
15    benefit retirement program to the self-managed plan, as a tax
16    free  transfer  in  accordance  with Internal Revenue Service
17    guidelines, for purposes of funding  the  employee's  opening
18    account balance.
19        (g)  No  Duplication  of Service Credit.  Notwithstanding
20    any other provision of this  Article,  an  employee  may  not
21    purchase  or  receive service or service credit applicable to
22    any other retirement program administered by the System under
23    this Article for any period during which the employee  was  a
24    participant  in  the self-managed plan established under this
25    Section.
26        (h)  Contributions.   The  self-managed  plan  shall   be
27    funded  by  contributions from employees participating in the
28    self-managed plan and employer contributions as  provided  in
29    this Section.
30        The  contribution rate for employees participating in the
31    self-managed plan under this Section shall be  equal  to  the
32    employee  contribution  rate  for  other  participants in the
33    System,  as  provided  in  Section  15-157.   This   required
34    contribution  shall  be  made  as an "employer pick-up" under
 
                            -128-          LRB9101658EGfgam01
 1    Section 414(h) of the Internal Revenue Code of  1986  or  any
 2    successor Section thereof.  Any employee participating in the
 3    System's  traditional  benefit  package  prior  to his or her
 4    election  to  participate  in  the  self-managed  plan  shall
 5    continue to have  the  employer  pick  up  the  contributions
 6    required  under  Section 15-157.  However, the amounts picked
 7    up after the election  of  the  self-managed  plan  shall  be
 8    remitted  to  and treated as assets of the self-managed plan.
 9    In no event shall an employee have  an  option  of  receiving
10    these   amounts  in  cash.   Employees  may  make  additional
11    contributions to the self-managed  plan  in  accordance  with
12    procedures  prescribed by the System, to the extent permitted
13    under rules prescribed by the System.
14        The program shall provide for employer  contributions  to
15    be  credited  to each self-managed plan participant at a rate
16    of 7.6% of the  participating  employee's  salary,  less  the
17    amount  used by the System to provide disability benefits for
18    the employee.  The amounts so credited shall be paid into the
19    participant's self-managed plan accounts in a  manner  to  be
20    prescribed by the System.
21        An  amount  of employer contribution, not exceeding 1% of
22    the participating employee's salary, shall be  used  for  the
23    purpose of providing the disability benefits of the System to
24    the employee.  Prior to the beginning of each plan year under
25    the self-managed plan, the Board of Trustees shall determine,
26    as   a   percentage   of   salary,  the  amount  of  employer
27    contributions to be  allocated  during  that  plan  year  for
28    providing   disability   benefits   for   employees   in  the
29    self-managed plan.
30        The  State  of  Illinois  shall  make  contributions   by
31    appropriations  to  the  System of the employer contributions
32    required for employees who participate  in  the  self-managed
33    plan  under  this  Section.    The  amount  required shall be
34    certified by the Board of Trustees of the System and paid  by
 
                            -129-          LRB9101658EGfgam01
 1    the  State  in  accordance  with  Section 15-165.  The System
 2    shall  not  be  obligated  to  remit  the  required  employer
 3    contributions to any of the insurance and annuity  companies,
 4    mutual  fund  companies,  banks,  trust  companies, financial
 5    institutions,  or  other  sponsors  of  any  of  the  funding
 6    vehicles offered under the self-managed  plan  until  it  has
 7    received  the required employer contributions from the State.
 8    In  the  event  of  a  deficiency  in  the  amount  of  State
 9    contributions, the System shall  implement  those  procedures
10    described  in  subsection (c) of Section 15-165 to obtain the
11    required funding from the General Revenue Fund.
12        (i)  Termination.  The self-managed plan authorized under
13    this Section may be terminated by the System, subject to  the
14    terms of any relevant contracts, and the System shall have no
15    obligation  to  reestablish  the self-managed plan under this
16    Section.  This Section does not create a right  to  continued
17    participation  in  any self-managed plan set up by the System
18    under this Section.  If the self-managed plan is  terminated,
19    the  participants  shall have the right to participate in one
20    of the other retirement programs offered by  the  System  and
21    receive  service  credit in such other retirement program for
22    any years of employment following the termination.
23        (j)  Vesting;   Withdrawal;   Return   to   Service.    A
24    participant in the self-managed plan becomes  vested  in  the
25    employer contributions credited to his or her accounts in the
26    self-managed  plan on the earliest to occur of the following:
27    (1) completion  of  5  years  of  service  with  an  employer
28    described   in   Section   15-106;   (2)  the  death  of  the
29    participating  employee  while  employed   by   an   employer
30    described in Section 15-106, if the participant has completed
31    at  least  1 1/2  years  of service; or (3) the participant's
32    election to retire and apply  the  reciprocal  provisions  of
33    Article 20 of this Code.
34        A  participant  in  the  self-managed plan who receives a
 
                            -130-          LRB9101658EGfgam01
 1    distribution  of  his  or  her  vested   amounts   from   the
 2    self-managed plan while not yet eligible for retirement under
 3    this  Article  (and  Article 20, if applicable) upon or after
 4    termination of employment shall forfeit  all  service  credit
 5    and   accrued   rights   in   the   System;  if  subsequently
 6    re-employed,  the  participant  shall  be  considered  a  new
 7    employee.   If  a  former   participant   again   becomes   a
 8    participating    employee   (or   becomes   employed   by   a
 9    participating system under  Article  20  of  this  Code)  and
10    continues  as  such  for  at  least 2 years, all such rights,
11    service credits, and previous status as a  participant  shall
12    be restored upon repayment of the amount of the distribution,
13    without interest.
14        (k)  Benefit  amounts.   If  an employee who is vested in
15    employer contributions terminates  employment,  the  employee
16    shall  be entitled to a benefit which is based on the account
17    values   attributable   to   both   employer   and   employee
18    contributions and any investment return thereon.
19        If  an  employee  who   is   not   vested   in   employer
20    contributions  terminates  employment,  the employee shall be
21    entitled to a benefit based  solely  on  the  account  values
22    attributable   to   the   employee's  contributions  and  any
23    investment return thereon, and the employer contributions and
24    any  investment  return  thereon  shall  be  forfeited.   Any
25    employer contributions which are forfeited shall be  held  in
26    escrow by the company investing those contributions and shall
27    be  used  as directed by the System for future allocations of
28    employer contributions or  for  the  restoration  of  amounts
29    previously  forfeited by former participants who again become
30    participating employees.
31    (Source: P.A. 89-430, eff. 12-15-95;  90-448,  eff.  8-16-97;
32    90-576, eff. 3-31-98; 90-766, eff. 8-14-98.)

33        (40 ILCS 5/15-181) (from Ch. 108 1/2, par. 15-181)
 
                            -131-          LRB9101658EGfgam01
 1        Sec. 15-181. Duties of employers.
 2        (a)  Each  employer,  in  preparing  payroll vouchers for
 3    participating employees, shall indicate, in addition to other
 4    information: (1) the amount  of  employee  contributions  and
 5    survivors  insurance  contributions  required  under  Section
 6    15-157,  (2) the gross earnings payable to each employee, and
 7    (3) the total of all  contributions  required  under  Section
 8    15-157.    An  additional  certified  copy  of  each  payroll
 9    certified by each employer shall be forwarded along with  the
10    original  payroll  to  the  Director  of  Central  Management
11    Services,  State Comptroller, and other officer receiving the
12    original certified payroll for transmittal to the board.
13        (b)  Each employer, in drawing warrants or checks against
14    trust or  federal  funds  for  items  of  salary  on  payroll
15    vouchers  certified by employers, shall draw such warrants or
16    checks to participating employees  for  the  amount  of  cash
17    salary  or  wages  specified for the period, and shall draw a
18    warrant or  check  to  this  system  for  the  total  of  the
19    contributions  required under Section 15-157.  The warrant or
20    check drawn to this system, together with the additional copy
21    of the payroll supplied by the employer, shall be transmitted
22    immediately to the board.
23        (c)  The City of Champaign and the  City  of  Urbana,  as
24    employers  of persons who participate in this System pursuant
25    to subsection (h) of Section 15-107, shall each  collect  and
26    transmit  to  the  System  from  each  payroll  the  employee
27    contributions  required  under  Section 15-157, together with
28    such payroll documentation as the Board may require,  at  the
29    time that the payroll is paid.
30    (Source: P.A. 90-576, eff. 3-31-98.).

31        (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
32        Sec. 16-133.  Retirement annuity; amount.
33        (a)  The  amount  of  the retirement annuity shall be the
 
                            -132-          LRB9101658EGfgam01
 1    larger of the amounts determined under paragraphs (A) and (B)
 2    below:
 3             (A)  An  amount  consisting  of  the  sum   of   the
 4        following:
 5                  (1)  An  amount  that  can  be  provided  on an
 6             actuarially  equivalent  basis   by   the   member's
 7             accumulated contributions at the time of retirement;
 8             and
 9                  (2)  The  sum  of  (i)  the  amount that can be
10             provided on an actuarially equivalent basis  by  the
11             member's   accumulated   contributions  representing
12             service prior to July 1, 1947, and (ii)  the  amount
13             that  can  be  provided on an actuarially equivalent
14             basis by the  amount  obtained  by  multiplying  1.4
15             times   the   member's   accumulated   contributions
16             covering service subsequent to June 30, 1947; and
17                  (3)  If  there  is  prior  service, 2 times the
18             amount  that  would  have  been   determined   under
19             subparagraph  (2)  of paragraph (A) above on account
20             of contributions which would have been  made  during
21             the period of prior service creditable to the member
22             had  the System been in operation and had the member
23             made  contributions  at  the  contribution  rate  in
24             effect prior to July 1, 1947.
25             (B)  An amount consisting  of  the  greater  of  the
26        following:
27                  (1)  For  creditable service earned before July
28             1, 1998 that has not been  augmented  under  Section
29             16-129.1:  1.67% of final average salary for each of
30             the  first  10 years of creditable service, 1.90% of
31             final average salary for each year in excess  of  10
32             but  not exceeding 20, 2.10% of final average salary
33             for each year in excess of 20 but not exceeding  30,
34             and  2.30%  of final average salary for each year in
 
                            -133-          LRB9101658EGfgam01
 1             excess of 30; and
 2                  For creditable service earned on or after  July
 3             1,  1998  by  a  member who has at least 24 years of
 4             creditable service on July 1, 1998 and who does  not
 5             elect  to  augment  service  under Section 16-129.1:
 6             2.2% of  final  average  salary  for  each  year  of
 7             creditable  service  earned on or after July 1, 1998
 8             but before the member reaches a total of 30 years of
 9             creditable service and 2.3% of final average  salary
10             for  each  year  of  creditable service earned on or
11             after July 1, 1998 and after the  member  reaches  a
12             total of 30 years of creditable service; and
13                  For  all  other  creditable  service:   2.2% of
14             final average salary for  each  year  of  creditable
15             service; or
16                  (2)  1.5% of final average salary for each year
17             of creditable service plus the sum $7.50 for each of
18             the first 20 years of creditable service.
19        The  amount  of  the  retirement annuity determined under
20        this paragraph (B) shall be reduced by 1/2 of 1% for each
21        month that the member is less than age 60 at the time the
22        retirement annuity begins.  However, this reduction shall
23        not apply (i) if the member has  at  least  35  years  of
24        creditable  service,  or  (ii)  if  the member retires on
25        account of disability  under  Section  16-149.2  of  this
26        Article with at least 20 years of creditable service.
27        (b)  For  purposes  of this Section, final average salary
28    shall be the average salary for  the  highest  4  consecutive
29    years  within  the  last  10  years  of creditable service as
30    determined under rules  of  the  board.   The  minimum  final
31    average salary shall be considered to be $2,400 per year.
32        In  the determination of final average salary for members
33    other than elected officials and their appointees  when  such
34    appointees  are  allowed  by statute, that part of a member's
 
                            -134-          LRB9101658EGfgam01
 1    salary for any year  beginning  after  June  30,  1979  which
 2    exceeds  the  member's  annual full-time salary rate with the
 3    same employer for the preceding year by more than  20%  shall
 4    be  excluded.    The exclusion shall not apply in any year in
 5    which the member's creditable earnings are less than  50%  of
 6    the  preceding  year's  mean salary for downstate teachers as
 7    determined by the survey of school district salaries provided
 8    in Section 2-3.103 of the School Code.
 9        (c)  In determining the amount of the retirement  annuity
10    under  paragraph (B) of this Section, a fractional year shall
11    be granted proportional credit.
12        (d)  The retirement annuity  determined  under  paragraph
13    (B)  of  this  Section shall be available only to members who
14    render teaching service after July 1, 1947 for  which  member
15    contributions  are  required,  and to annuitants who re-enter
16    under the provisions of Section 16-150.
17        (e)  The  maximum  retirement  annuity   provided   under
18    paragraph  (B)  of this Section shall be 75% of final average
19    salary.
20        (f)  A member retiring after the effective date  of  this
21    amendatory  Act  of 1998 shall receive a pension equal to 75%
22    of final average salary if the member is qualified to receive
23    a retirement annuity equal to at least 74.6% of final average
24    salary under this Article or as proportional annuities  under
25    Article 20 of this Code.
26    (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.)

27        (40 ILCS 5/16-135) (from Ch. 108 1/2, par. 16-135)
28        Sec. 16-135.  Supplementary retirement annuity.
29        (a)  An  annuitant  who is receiving a retirement annuity
30    on June 30, 1961 of less than $50 for each year of creditable
31    service forming the basis of  the  retirement  annuity  shall
32    have  his or her retirement annuity increased to $50 per year
33    for each year of such creditable service, but not exceeding a
 
                            -135-          LRB9101658EGfgam01
 1    total annual retirement annuity of $2,250.
 2        (b)  In  order  to  be  entitled  to  the   increase   in
 3    retirement  annuity provided under this Section, an annuitant
 4    is required to make an additional contribution of $5 for each
 5    year of creditable service, not to exceed 45  years  together
 6    with  interest  at  the  rate of 3% per annum from August 25,
 7    1961.
 8        (c)  The supplementary retirement annuity provided  under
 9    this  Section shall begin to accrue on the first of the month
10    following receipt  of  the  required  contribution  from  the
11    annuitant  and  shall  continue to be paid only to the extent
12    that funds are available in the Supplementary Annuity Reserve
13    established under Section 16-184.
14    (Source: P.A. 83-1440.)

15        (40 ILCS 5/16-136.4) (from Ch. 108 1/2, par. 16-136.4)
16        Sec. 16-136.4.  Single-sum retirement benefit.
17        (a)  A member who has less than  5  years  of  creditable
18    service  shall  be  entitled, upon written application to the
19    board, to receive a retirement benefit payable  in  a  single
20    sum  upon  or  after  the  member's  attainment  of  age  65.
21    However,  the  benefit  shall not be paid while the member is
22    employed as a teacher in  the  schools  included  under  this
23    Article  or  Article  17,  unless  the  System is required by
24    federal law to make payment due to the member's age.
25        (b)  The retirement benefit shall consist of a single sum
26    that is the actuarial equivalent of a life annuity consisting
27    of 1.67% of the member's final average salary for  each  year
28    of  creditable  service.   In  determining  the amount of the
29    benefit, a fractional  year  shall  be  granted  proportional
30    credit.
31        For  the  purposes  of this Section, final average salary
32    shall be  the  average  salary  of  the  member's  highest  4
33    consecutive years of service as determined under rules of the
 
                            -136-          LRB9101658EGfgam01
 1    board.   For  a  member with less than 4 consecutive years of
 2    service, final average salary shall  be  the  average  salary
 3    during  the  member's  entire  period  of  service.   In  the
 4    determination  of final average salary for members other than
 5    elected officials and their appointees when  such  appointees
 6    are  allowed by statute, that part of a member's salary which
 7    exceeds the member's annual full-time salary  rate  with  the
 8    same  employer  for the preceding year by more than 20% shall
 9    be excluded.  The exclusion shall not apply in  any  year  in
10    which  the  member's creditable earnings are less than 50% of
11    the preceding year's mean salary for  downstate  teachers  as
12    determined by the survey of school district salaries provided
13    in Section 2-3.103 of the School Code.
14        (c)  The retirement benefit determined under this Section
15    shall be available to all members who render teaching service
16    after  July  1,  1947  for  which  member  contributions  are
17    required.
18        (d)  Upon  acceptance  of  the retirement benefit, all of
19    the member's accrued rights and credits  in  the  System  are
20    forfeited.   Receipt of a single-sum retirement benefit under
21    this Section does not make a person an  "annuitant"  for  the
22    purposes  of  this Article, nor a "benefit recipient" for the
23    purposes of Sections 16-153.1 through 16-153.4.
24    (Source: P.A. 87-11.)

25        (40 ILCS 5/16-138) (from Ch. 108 1/2, par. 16-138)
26        Sec. 16-138.   Refund  of  contributions  upon  death  of
27    member  or  annuitant.    Upon  the  death  of  a  member  or
28    annuitant,  the  following  amount  shall be payable (i) to a
29    beneficiary, nominated by written designation of  the  member
30    or annuitant filed with the system, or (ii) if no beneficiary
31    is  nominated,  to  the  surviving  spouse,  or  (iii)  if no
32    beneficiary is nominated and there is no surviving spouse, to
33    the decedent's estate, upon receipt of proper proof of death:
 
                            -137-          LRB9101658EGfgam01
 1        (1)  Upon the death of a member, an amount consisting  of
 2    the  sum  of  the  following:   (A)  the member's accumulated
 3    contributions; (B) the sum of the contributions made  by  the
 4    member  toward  the cost of the automatic increase in annuity
 5    under Section  16-152,  without  interest  thereon;  and  (C)
 6    contributions  made  by  the  member  toward  prior  service,
 7    without interest thereon.
 8        (2)  Upon   the   death   of   an   annuitant,  unless  a
 9    reversionary annuity is  payable  under  Section  16-136,  an
10    amount  determined by subtracting the total amount of monthly
11    annuity  payments  received  as  a  result  of  the  deceased
12    annuitant's retirement from the sum of:  (A)  the accumulated
13    contributions at retirement; (B) the sum of the contributions
14    made by  the  deceased  toward  the  cost  of  the  automatic
15    increase  in  annuity  under Section 16-151, without interest
16    thereon; and (C) any contributions made by the  deceased  for
17    prior  service  or other purposes, exclusive of contributions
18    toward the cost of the automatic increase in annuity, without
19    interest thereon.
20    (Source: P.A. 83-1440.)

21        (40 ILCS 5/16-140) (from Ch. 108 1/2, par. 16-140)
22        Sec. 16-140.  Survivors' benefits - definitions.
23        (a)  For the purpose of Sections 16-138 through 16-143.2,
24    the following terms shall have the following meanings, unless
25    the context otherwise requires:
26             (1)  "Average salary": the average  salary  for  the
27        highest  4  consecutive years within the last 10 years of
28        creditable service immediately preceding date of death or
29        retirement,  whichever  is  applicable,  or  the  average
30        salary for the total creditable  service  if  service  is
31        less than 4 years.
32             (2)  "Member":   any   teacher   included   in   the
33        membership of the system.  However, a teacher who becomes
 
                            -138-          LRB9101658EGfgam01
 1        an  annuitant  of  the system or a teacher whose services
 2        terminate after 20 years of service from any cause  other
 3        than  retirement  is  considered a member, subject to the
 4        conditions and limitations stated in this Article.
 5             (3)  "Dependent beneficiary": (A) a surviving spouse
 6        of a member or annuitant who was married to the member or
 7        annuitant for the 12 month period  immediately  preceding
 8        and  on  the  date  of death of such member or annuitant,
 9        except where a child is born of such marriage,  in  which
10        case the qualifying period shall not be applicable; (A-1)
11        a  surviving  spouse of a member or annuitant who (i) was
12        married to the member or annuitant on  the  date  of  the
13        member  or  annuitant's  death,  (ii)  was married to the
14        member or annuitant for a period of at  least  12  months
15        (but  not necessarily the 12 months immediately preceding
16        the member or annuitant's death), and (iii) first applied
17        for a survivor's benefit before April 1, 1997,  and  (iv)
18        has  not  received  a  benefit  under  subsection  (a) of
19        Section 16-141 or paragraph (1) of Section 16-142; (B) an
20        eligible child of  a  member  or  annuitant;  and  (C)  a
21        dependent parent.
22             Unless   otherwise   designated   by   the   member,
23        eligibility  for  benefits  shall  be in the order named,
24        except that a dependent parent shall be eligible only  if
25        there  is no other dependent beneficiary.  Any benefit to
26        be received by or paid to a dependent beneficiary  to  be
27        determined  under  this paragraph as provided in Sections
28        16-141 and 16-142 may be received by or paid to  a  trust
29        established   for  such  dependent  beneficiary  if  such
30        dependent beneficiary is living at the time such  benefit
31        would be received by or paid to such trust.
32             (4)  "Eligible   child":  an  unmarried  natural  or
33        adopted child of the member or  annuitant  under  age  18
34        (age 22 if a full-time student).  An unmarried natural or
 
                            -139-          LRB9101658EGfgam01
 1        adopted  child,  regardless  of  age, who is dependent by
 2        reason of a physical or  mental  disability,  except  any
 3        such  child  receiving  benefits under Article III of the
 4        Illinois Public Aid Code, is eligible for so long as such
 5        physical or  mental  disability  continues.   An  adopted
 6        child,  however,  is eligible only if the proceedings for
 7        adoption were finalized while the child was a minor.
 8             For purposes of this subsection, "disability"  means
 9        an   inability  to  engage  in  any  substantial  gainful
10        activity by reason of any medically determinable physical
11        or mental impairment which can be expected to  result  in
12        death  or which has lasted or can be expected to last for
13        a continuous period of not less than 12 months.
14             The changes made  to  this  Section  by  Public  Act
15        90-448,   relating  to  benefits  for  certain  unmarried
16        children who are full-time students under age  22,  apply
17        without  regard  to  whether  the  deceased member was in
18        service on or after  the  effective  date  of  that  Act.
19        These  changes do not authorize the repayment of a refund
20        or a re-election of benefits, and any benefit or increase
21        in benefits resulting from these changes is  not  payable
22        retroactively for any period before the effective date of
23        that Act.
24             (5)  "Dependent  parent": a parent who was receiving
25        at least 1/2 of his or  her  support  from  a  member  or
26        annuitant  for  the 12-month period immediately preceding
27        and on the date of such member's  or  annuitant's  death,
28        provided  however,  that such dependent status terminates
29        upon a member's  acceptance  of  a  refund  for  survivor
30        benefit contributions as provided under Section 16-142.
31             (6)  "Non-dependent    beneficiary":   any   person,
32        organization or other entity designated by the member who
33        does not qualify as a dependent beneficiary.
34             (7)  "In service": the condition of a  member  being
 
                            -140-          LRB9101658EGfgam01
 1        in  receipt  of salary as a teacher at any time within 12
 2        months immediately before his  or  her  death,  being  on
 3        leave  of  absence  for  which the member, upon return to
 4        teaching, would be eligible to  purchase  service  credit
 5        under  subsection  (b)(5)  of Section 16-127, or being in
 6        receipt  of  a  disability  or  occupational   disability
 7        benefit.   This  term  does  not include any annuitant or
 8        member who  previously  accepted  a  refund  of  survivor
 9        benefit  contributions  under  paragraph  (1)  of Section
10        16-142 unless the conditions specified in subsection  (b)
11        of Section 16-143.2 are met.
12        (b)  The change to this Section made by Public Act 90-511
13    applies  without  regard  to  whether  the deceased member or
14    annuitant was in service on or after the  effective  date  of
15    that Act.
16        The change to this Section made by this amendatory Act of
17    the  91st  General Assembly applies without regard to whether
18    the deceased member or annuitant was in service on  or  after
19    the effective date of this amendatory Act.
20    (Source: P.A.  89-430,  eff.  12-15-95; 90-448, eff. 8-16-97;
21    90-511, eff. 8-22-97; 90-655, eff. 7-30-98.)

22        (40 ILCS 5/16-143) (from Ch. 108 1/2, par. 16-143)
23        Sec. 16-143.  Survivors' benefits - other conditions  and
24    limitations.  The benefits provided under Sections 16-141 and
25    16-142, shall be subject to the following further  conditions
26    and limitations:
27        (1)  The period during which a member was in receipt of a
28    disability   or  occupational  disability  benefit  shall  be
29    considered as creditable service at the annual salary rate on
30    which the member last made contributions.
31        (2)  All service  prior  to  July  24,  1959,  for  which
32    creditable  service  is  granted towards a retirement annuity
33    shall be considered as creditable service.
 
                            -141-          LRB9101658EGfgam01
 1        (3)  No benefits shall be payable unless a member,  or  a
 2    disabled member, returning to service, has made contributions
 3    to  the  system  for  at least one month after July 24, 1959,
 4    except that an annuitant must have contributed to the  system
 5    for  at  least  1  year  of creditable service after July 24,
 6    1959.
 7        (4)  Creditable  service  under  the   State   Employees'
 8    Retirement   System   of  Illinois,  the  State  Universities
 9    Retirement System and the Public School Teachers' Pension and
10    Retirement Fund of Chicago shall be considered in determining
11    whether  the  member   has   met   the   creditable   service
12    requirement.
13        (5)  If   an   eligible   beneficiary   qualifies  for  a
14    survivors' benefit because of pension credits established  by
15    the  participant  or  annuitant  in another system covered by
16    Article 20, and the combined survivors' benefits  exceed  the
17    highest  survivors'  benefit  payable  by either system based
18    upon the combined pension  credits,  the  survivors'  benefit
19    payable  by this system shall be reduced to that amount which
20    when added to the survivors' benefit  payable  by  the  other
21    system  would  equal  this highest survivors' benefit. If the
22    other system has a similar provision for  adjustment  of  the
23    survivors'  benefit,  the  respective proportional survivors'
24    benefits shall be reduced proportionately  according  to  the
25    ratio  which  the  amount  of  each  proportional  survivors'
26    benefit bears to the aggregate of all proportional survivors'
27    benefits.  If  a  survivors'  benefit  is  payable by another
28    system covered by Article 20,  and  the  survivor  elects  to
29    waive  the  monthly  survivors' benefit and accept a lump sum
30    payment or death benefit in lieu of  the  monthly  survivors'
31    benefit,  this system shall, for the purpose of adjusting the
32    monthly survivors' benefit under this paragraph, assume  that
33    the  survivor  had  been  entitled  to  a  monthly survivors'
34    benefit which, in accordance with actuarial  tables  of  this
 
                            -142-          LRB9101658EGfgam01
 1    system, is the actuarial equivalent of the amount of the lump
 2    sum payment or death benefit.
 3        (6)  Remarriage of a surviving spouse prior to attainment
 4    of  age  55  that  occurs  before  the effective date of this
 5    amendatory Act of the 91st General Assembly  shall  terminate
 6    his or her survivors' benefits.
 7        The  change  made to this item (6) by this amendatory Act
 8    of the  91st  General  Assembly  applies  without  regard  to
 9    whether the deceased member or annuitant was in service on or
10    after  the  effective date of this amendatory Act of the 91st
11    General Assembly.
12        (7)  The benefits payable  to  an  eligible  child  shall
13    terminate  when  the eligible child marries, dies, or attains
14    age 18 (age 22 if a full-time student); except that  benefits
15    payable   to   a  dependent  disabled  eligible  child  shall
16    terminate only when the eligible child dies or ceases  to  be
17    disabled.
18    (Source: P.A. 90-448, eff. 8-16-97.)

19        (40 ILCS 5/16-149.4) (from Ch. 108 1/2, par. 16-149.4)
20        Sec.   16-149.4.    Supplementary  disability  retirement
21    annuity.
22        (a)  An  annuitant  receiving  a  disability   retirement
23    annuity  on  June  30, 1961 of less than $50 for each year of
24    creditable  service  forming  the  basis  of  the  disability
25    retirement  annuity  shall  have  his   or   her   disability
26    retirement annuity increased to $50 per year for each year of
27    such creditable service, with a minimum annuity of $1,000 per
28    year.
29        (b)  In   order   to  be  entitled  to  the  increase  in
30    disability retirement annuity provided under this Section, an
31    annuitant is required to make an additional  contribution  of
32    $5  for  each  year  of  creditable  service,  together  with
33    interest at the rate of 3% per annum from August 25, 1961.
 
                            -143-          LRB9101658EGfgam01
 1        (c)  The  supplementary retirement annuity provided under
 2    this Section shall begin to accrue on the first of the  month
 3    following  receipt  of  the  required  contributions from the
 4    annuitant and shall continue to be paid only  to  the  extent
 5    that funds are available in the Supplementary Annuity Reserve
 6    established under Section 16-184.
 7    (Source: P.A. 83-1440.)

 8        (40 ILCS 5/16-184) (from Ch. 108 1/2, par. 16-184)
 9        Sec. 16-184.  Supplementary Annuity Reserve.
10        (a)  Except  as  provided in subsection (b), a reserve to
11    be known as the Supplementary Annuity Reserve is  established
12    for  the  purpose  of  crediting  funds received and charging
13    disbursements made for supplementary annuities under  Section
14    16-135 and Section 16-149.4.
15        This Reserve shall be credited with:
16             (1)  The   total   of   all  contributions  made  by
17        annuitants to qualify for supplementary annuities.
18             (2)  Amounts contributed to the System by the  State
19        of  Illinois that are sufficient to assure payment of the
20        supplementary annuities.
21             (3)  Regular  interest  computed  annually  on   the
22        average balance in this reserve.
23        This  Reserve  shall  be  charged  with  all supplemental
24    annuity payments under Section 16-135 and Section 16-149.4.
25        (b)  On the July 1 next  occurring  after  the  effective
26    date of this amendatory Act of the 91st General Assembly, the
27    Supplemental  Annuity  Reserve is abolished and any remaining
28    balance After all supplementary annuity  payments  have  been
29    completed, any remaining funds shall be transferred from that
30    this Reserve to the Employer's Contribution Reserve.
31    (Source: P.A. 88-593, eff. 8-22-94.)

32        (40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106)
 
                            -144-          LRB9101658EGfgam01
 1        Sec.    17-106.    Contributor,    member   or   teacher.
 2    "Contributor", "member" or "teacher":   All  members  of  the
 3    teaching  force  of the city, including principals, assistant
 4    principals, the general  superintendent  of  schools,  deputy
 5    superintendents  of  schools,  associate  superintendents  of
 6    schools,  assistant  and district superintendents of schools,
 7    members of the Board of Examiners, all  other  persons  whose
 8    employment  requires  a teaching certificate issued under the
 9    laws   governing   the   certification   of   teachers,   any
10    educational, administrative,  professional,  or  other  staff
11    employed in a charter school operating in compliance with the
12    Charter  Schools Law who is certified under the law governing
13    the certification of teachers, and employees  of  the  Board,
14    but  excluding persons contributing concurrently to any other
15    public employee pension  system  in  Illinois  for  the  same
16    employment  or  receiving  retirement  pensions under another
17    Article of this Code for that  same  employment  (unless  the
18    person's  eligibility  to  participate  in that other pension
19    system arises from the holding of an elective public  office,
20    and  the  person  has held that public office for at least 10
21    years), persons employed on  an  hourly  basis,  and  persons
22    receiving pensions from the Fund who are employed temporarily
23    by  an  Employer  for 100 days or less in any school year and
24    not on an annual basis.
25        In the case of a person who has been making contributions
26    and  otherwise  participating  in  this  Fund  prior  to  the
27    effective date of this amendatory Act  of  the  91st  General
28    Assembly  1991, and whose right to participate in the Fund is
29    established or confirmed by this amendatory Act,  such  prior
30    participation   in  the  Fund,  including  all  contributions
31    previously made and service credits previously earned by  the
32    person, are hereby validated.
33    (Source:  P.A.  89-450,  eff.  4-10-96;  90-32, eff. 6-27-97;
34    90-566, eff. 1-2-98.)
 
                            -145-          LRB9101658EGfgam01
 1        (40 ILCS 5/17-117) (from Ch. 108 1/2, par. 17-117)
 2        Sec. 17-117. Disability retirement pension.
 3        (a)  The conditions  prescribed  in  items  1  and  2  in
 4    Section  17-116  for  computing  service  retirement pensions
 5    shall apply  in  the  computation  of  disability  retirement
 6    pensions.
 7             (1)  Each teacher retired or retiring after 10 years
 8        of service and with less than 20 years of service because
 9        of  permanent  disability  not  incurred  as  a proximate
10        result  of  the  performance  of  duty  shall  receive  a
11        disability retirement pension equal to  2.2%  of  average
12        salary  for  each year of service after June 30, 1998 and
13        for each year of service on or before that date that  has
14        been  augmented  under  Section  17-119.1  and  1 2/3% of
15        average salary for each year of other service.
16             (2)  If the total service is 20 years and less  than
17        25   years  and  the  teacher's  age  is  under  55,  the
18        disability  retirement  pension  shall  equal  a  service
19        retirement pension discounted 1/2 of 1%  for  each  month
20        the  age  of  the  contributor  is less than 55 down to a
21        minimum  age  of  50  years,  provided   the   disability
22        retirement pension so computed shall not be less than the
23        amount payable under paragraph 1.
24             (3)  If  the  total  service is 20 years or more and
25        the teacher has attained age 55, and is under age  60,  a
26        disability  retirement  pension  shall  equal  a  service
27        retirement pension without discount.
28             (4)  If  the  total  service  is  25  years  or more
29        regardless of age, a disability  pension  shall  equal  a
30        service retirement pension without discount.
31             (5)  If  the  total  service is 20 years or more and
32        the teacher is age  60  or  over,  a  service  retirement
33        pension shall be payable.
34        (b)  For  disability  retirement  pensions, the following
 
                            -146-          LRB9101658EGfgam01
 1    further conditions shall apply:
 2             (1)  Written application shall be submitted within 3
 3        years from the date of separation.
 4             (2)  The applicant shall submit  to  examination  by
 5        physicians  appointed  by  the Board within one year from
 6        the date of their appointment.
 7             (3)  Two physicians, appointed by the  Board,  shall
 8        declare  the  applicant to be suffering from a disability
 9        which wholly and presumably permanently incapacitates him
10        for teaching or for service as an employee of the  Board.
11        In  the  event of disagreement by the physicians, a third
12        physician, appointed by  the  Board,  shall  declare  the
13        applicant     wholly     and    presumably    permanently
14        incapacitated.
15        (c)  Disability retirement pensions shall  begin  on  the
16    effective  date of resignation or the day following the close
17    of  the  payroll  period  for  which  credit  was  validated,
18    whichever is later.
19    (Source: P.A. 90-32; eff. 6-27-97; 90-566, eff. 1-2-98.)

20        (40 ILCS 5/17-133) (from Ch. 108 1/2, par. 17-133)
21        Sec. 17-133. Contributions for  periods  of  outside  and
22    other  service.    Regularly certified and appointed teachers
23    who desire to have the following described services  credited
24    for  pension  purposes  shall  submit  to  the Board evidence
25    thereof and pay into the Fund the amounts prescribed herein:
26             1.  For teaching service by a certified  teacher  in
27        the  public  schools  of the several states or in schools
28        operated by or under the auspices of the United States, a
29        teacher shall pay the contributions at the rates in force
30        (a) on the date of appointment as a  regularly  certified
31        teacher after salary adjustments are completed, or (b) at
32        the  time  of  reappointment after salary adjustments are
33        completed, whichever is later, but not less than $450 per
 
                            -147-          LRB9101658EGfgam01
 1        year of service.   Upon  the  Board's  approval  of  such
 2        service  and  the  payment of the required contributions,
 3        service credit  of  not  more  than  10  years  shall  be
 4        granted.
 5             2.  For service as a playground instructor in public
 6        school  playgrounds, teachers shall pay the contributions
 7        prescribed  in  this  Article  (a)   at   the   time   of
 8        appointment,  as  a  regularly  certified  teacher  after
 9        salary  adjustments  are  completed,  or (b) on return to
10        service as a full time regularly  certified  teacher,  as
11        the case may be, provided such rates or amounts shall not
12        be less than $450 per year.
13             3.  For  service  prior to September 1, 1955, in the
14        public schools of  the  City  as  a  substitute,  evening
15        school  or  temporary  teacher,  or  for  service  as  an
16        Americanization  teacher  prior  to  December  31,  1955,
17        teachers   shall pay the contributions prescribed in this
18        Article (a) at the time of appointment,  as  a  regularly
19        certified teacher after salary adjustments are completed,
20        (b)  on  return  to  service  as  a  full  time regularly
21        certified teacher, as the  case  may  be,  provided  such
22        rates  or  amounts  shall not be less than $450 per year;
23        and provided further that for  teachers  employed  on  or
24        after   September   1,  1953,  rates  shall  not  include
25        contributions  for  widows'  pensions  if   the   service
26        described  in  this  sub-paragraph  3 was rendered before
27        that date.  Any teacher entitled to  repay  a  refund  of
28        contributions  under  Section  17-126 126 of this Article
29        may validate  service  described  in  this  paragraph  by
30        payment  of  the amounts prescribed herein, together with
31        the repayment  of  the  refund,  provided  that  if  such
32        creditable  service  was the last service rendered in the
33        public schools of  the  City  and  is  not  automatically
34        reinstated  by  repayment  of  the  refund,  the rates or
 
                            -148-          LRB9101658EGfgam01
 1        amounts shall not be less than $450 per year.
 2             4.  For service after June 30, 1982 as a  member  of
 3        the  Board  of  Education,  if required to resign from an
 4        administrative or teaching position in order  to  qualify
 5        as a member of the Board of Education.
 6             5.  For  service during the 1986-87 school year as a
 7        teacher on a special leave of absence with full  loss  of
 8        salary,  teaching  for  an  agency  under contract to the
 9        Board of Education, if the teacher returned to employment
10        in September, 1987.  For service under this item  5,  the
11        teacher  must pay the contributions at the rates in force
12        at the completion of the leave period.
13          For service described in sub-paragraphs 1, 2 and  3  of
14    this  Section,  interest  shall be charged beginning one year
15    after the effective date of appointment or reappointment.
16        Effective September 1, 1974,  the  interest  rate  to  be
17    charged   by   the   Fund   on   contributions   provided  in
18    sub-paragraphs 1, 2, 3 and 4 shall be 5% per annum compounded
19    annually.
20    (Source: P.A. 90-566, eff. 1-2-98.)

21        (40 ILCS 5/17-150) (from Ch. 108 1/2, par. 17-150)
22        Sec. 17-150.  Suspension  of  pensions.   Until  July  1,
23    2000,  pension  payments,  exclusive  of  those  made  to the
24    survivors  of  persons  who  were  contributors,   shall   be
25    suspended  while  the  recipient  is  employed  in a teaching
26    capacity, outside the City in which the Fund exists,  by  any
27    public  school  or  charter  school in this State, unless the
28    recipient is so employed temporarily as a substitute  teacher
29    for  100  days or less in a school year or on an hourly basis
30    with earnings not in excess of the sum payable for 100  days'
31    substitute service.
32        Beginning  July 1, 2000, pension payments shall no longer
33    be suspended while the recipient is employed  in  a  teaching
 
                            -149-          LRB9101658EGfgam01
 1    capacity,  outside  the City in which the Fund exists, by any
 2    public school or  charter  school  in  this  State,  and  any
 3    pension  that  is in a state of suspension under this Section
 4    on  July  1,  2000  shall  be  reinstated   on   that   date.
 5    Notwithstanding  Section  17-157,  the change to this Section
 6    made by this amendatory Act  of  the  91st  General  Assembly
 7    applies without regard to whether or not the pensioner was in
 8    service  on  or  after  the effective date of this amendatory
 9    Act.
10    (Source: P.A. 90-566, eff. 1-2-98.)

11        (40 ILCS 5/18-128) (from Ch. 108 1/2, par. 18-128)
12        Sec.  18-128.   Survivor's  annuities;   Conditions   for
13    payment.
14        (a)  A survivor's annuity shall be payable upon the death
15    of  a participant while in service after June 30, 1967 if the
16    participant had at least 1 1/2 years of service credit  as  a
17    judge,  or  upon  death  of  an  inactive participant who had
18    terminated service as a judge on or after June 30, 1967  with
19    at  least 10 years of service credit, or upon the death of an
20    annuitant whose retirement becomes effective after  June  30,
21    1967.
22        (b)  The  surviving  spouse  of a deceased participant or
23    annuitant is entitled to a survivor's  annuity  beginning  at
24    the  date  of  death  if  the  surviving  spouse (1) has been
25    married to the participant  or  annuitant  for  a  continuous
26    period of at least one year immediately preceding the date of
27    death,  and  (2)  has attained age 50, or, regardless of age,
28    has in his or her care an eligible child or children  of  the
29    decedent  as  provided  under subsections (c) and (d) of this
30    Section.  If the surviving spouse has no such child in his or
31    her care and has not attained age 50, the survivor's  annuity
32    shall  begin  upon  attainment  of  age  50.   When  all such
33    children of the deceased who are in the care of the surviving
 
                            -150-          LRB9101658EGfgam01
 1    spouse no longer  qualify  for  benefits  and  the  surviving
 2    spouse  is  under  50  years  of  age, the surviving spouse's
 3    annuity shall be suspended until he or she attains age 50.
 4        (c)  A child's annuity is payable for an unmarried  child
 5    of  an  annuitant  or participant so long as the child is (i)
 6    under age 18, (ii) under age 22 and a full time  student,  or
 7    (iii)  age  18  or over if dependent by reason of physical or
 8    mental disability.  Disability means inability to  engage  in
 9    any  substantial  gainful activity by reason of any medically
10    determinable physical or mental impairment which can expected
11    to result in death or which has lasted or can be expected  to
12    last for a continuous period of not less than 12 months.
13        (d)  Adopted  children  shall  have  the  same  status as
14    natural children, but only if the  proceedings  for  adoption
15    were  commenced  at  least 6 months prior to the death of the
16    annuitant or participant.
17        (e)  Remarriage prior to attainment of age 50 that occurs
18    before the effective date of this amendatory Act of the  91st
19    General  Assembly shall disqualify a surviving spouse for the
20    receipt of a survivor's annuity.
21        The change made to this subsection by this amendatory Act
22    of the  91st  General  Assembly  applies  without  regard  to
23    whether  the  deceased  judge  was in service on or after the
24    effective date of this amendatory Act  of  the  91st  General
25    Assembly.
26        (f)  The changes made in survivor's annuity provisions by
27    Public  Act 82-306 shall apply to the survivors of a deceased
28    participant or annuitant  whose  death  occurs  on  or  after
29    August 21, 1981 and whose service as a judge terminates on or
30    after July 1, 1967.
31        The provision of child's annuities for dependent students
32    under  age  22  by this amendatory Act of 1991 shall apply to
33    all eligible students  beginning  January  1,  1992,  without
34    regard  to  whether  the  deceased judge was in service on or
 
                            -151-          LRB9101658EGfgam01
 1    after the effective date of this amendatory Act.
 2    (Source: P.A. 87-794.)

 3        (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
 4        Sec.  20-121.  Calculation  of  proportional   retirement
 5    annuities.   Upon  retirement of the employee, a proportional
 6    retirement annuity shall be computed  by  each  participating
 7    system  in  which  pension credit has been established on the
 8    basis of pension credits under each system.  The  computation
 9    shall  be in accordance with the formula or method prescribed
10    by each participating system which is in effect at  the  date
11    of  the  employee's latest withdrawal from service covered by
12    any of the systems in which he has pension credits  which  he
13    elects  to  have considered under this Article.  However, the
14    amount  of  any  retirement   annuity   payable   under   the
15    self-managed  plan established under Section 15-158.2 of this
16    Code depends solely on the value of the participant's  vested
17    account  balances  and  is  not  subject  to any proportional
18    adjustment under this Section.
19        Combined pension  credit  under  all  retirement  systems
20    subject  to  this  Article shall be considered in determining
21    whether the  minimum  qualification  has  been  met  and  the
22    formula  or method of computation which shall be applied.  If
23    a system has a  step-rate  formula  for  calculation  of  the
24    retirement annuity, pension credits covering previous service
25    which  have  been  established  under another system shall be
26    considered in  determining  which  range  or  ranges  of  the
27    step-rate formula are to be applicable to the employee.
28        Interest  on  pension credit shall continue to accumulate
29    in accordance with the provisions of the  law  governing  the
30    retirement  system  in  which  the  same has been established
31    during the time an employee is  in  the  service  of  another
32    employer,  on  the  assumption  such  employee,  for interest
33    purposes for pension credit, is  continuing  in  the  service
 
                            -152-          LRB9101658EGfgam01
 1    covered by such retirement system.
 2    (Source: P.A. 79-782.)

 3        (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
 4        Sec.   20-123.    Survivor's   annuity.   The  provisions
 5    governing a retirement  annuity  shall  be  applicable  to  a
 6    survivor's annuity.  Appropriate credits shall be established
 7    for   survivor's  annuity  purposes  in  those  participating
 8    systems which provide survivor's annuities, according to  the
 9    same  conditions  and  subject  to  the  same limitations and
10    restrictions herein prescribed for a retirement annuity.   If
11    a  participating system has no survivor's annuity benefit, or
12    if the  survivor's  annuity  benefit  under  that  system  is
13    waived,  pension credit established in that this system shall
14    not be considered  in  determining  eligibility  for  or  the
15    amount  of the survivor's annuity which may be payable by any
16    other participating system.
17        For persons who  participate  in  the  self-managed  plan
18    established  under  Section  15-158.2 or the portable benefit
19    package established under Section  15-136.4,  pension  credit
20    established under Article 15 may be considered in determining
21    eligibility  for or the amount of the survivor's annuity that
22    is payable by any other  participating  system,  but  pension
23    credit  established  in  any other system shall not result in
24    any right to  a  survivor's  annuity  under  the  Article  15
25    system.
26    (Source: P.A. 79-782.)

27        (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
28        Sec.  20-124.   Maximum  benefits.  In no event shall the
29    combined retirement or survivors annuities exceed the highest
30    annuity which would have been payable  by  any  participating
31    system  in  which the employee has pension credits, if all of
32    his pension credits had been validated in that system.
 
                            -153-          LRB9101658EGfgam01
 1        If the  combined  annuities  should  exceed  the  highest
 2    maximum  as  determined  in accordance with this Section, the
 3    respective  annuities  shall   be   reduced   proportionately
 4    according  to the ratio which the amount of each proportional
 5    annuity bears to the aggregate of all such annuities.
 6        In the case of a participant  in  the  self-managed  plan
 7    established  under  Section 15-158.2 of this Code to whom the
 8    provisions of this Article apply:
 9             (i)  For  purposes  of  calculating   the   combined
10        retirement  annuity  and  the proportionate reduction, if
11        any, in a retirement annuity other than one payable under
12        the self-managed plan,  the  amount  of  the  Article  15
13        retirement  annuity  shall  be  deemed  to be the highest
14        annuity to which the annuitant would have  been  entitled
15        if  he or she had participated in the traditional benefit
16        package as defined in Section 15-103.1  rather  than  the
17        self-managed plan.
18             (ii)  For   purposes  of  calculating  the  combined
19        survivor's annuity and the  proportionate  reduction,  if
20        any, in a survivor's annuity other than one payable under
21        the  self-managed  plan,  the  amount  of  the Article 15
22        survivor's annuity shall be  deemed  to  be  the  highest
23        survivor's  annuity to which the survivor would have been
24        entitled if the deceased employee had participated in the
25        traditional  benefit  package  as  defined   in   Section
26        15-103.1 rather than the self-managed plan.
27             (iii)  Benefits  payable under the self-managed plan
28        are not subject to  proportionate  reduction  under  this
29        Section.
30    (Source: P.A. 79-782.)

31        (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
32        Sec.  20-125.   Return  to  employment  -  suspension  of
33    benefits.   If a retired employee returns to employment which
 
                            -154-          LRB9101658EGfgam01
 1    is  covered  by  a  system  from  which  he  is  receiving  a
 2    proportional annuity under  this  Article,  his  proportional
 3    annuity  from  all  participating  systems shall be suspended
 4    during  the  period  of  re-employment,  except   that   this
 5    suspension  does not apply to any distributions payable under
 6    the self-managed plan established under Section  15-158.2  of
 7    this Code.
 8        The provisions of the Article under which such employment
 9    would  be  covered  shall govern the determination of whether
10    the employee has returned to employment,  and  if  applicable
11    the  exemption  of  temporary  employment  or  employment not
12    exceeding  a  specified  duration  or  frequency,   for   all
13    participating  systems  from  which  the  retired employee is
14    receiving  a  proportional  annuity   under   this   Article,
15    notwithstanding any contrary provisions in the other Articles
16    governing such systems.
17    (Source: P.A. 85-1008.)

18        (40 ILCS 5/20-131) (from Ch. 108 1/2, par. 20-131)
19        Sec.   20-131.    Retirement   Annuities   and  Survivors
20    Annuities - Guarantees.
21        (a)  This amendatory Act of 1975 (P.A. 79-782) shall  not
22    be   applied  to  deprive  any  person  or  his  survivor  of
23    eligibility for an annuity or to reduce  the  annuity  or  to
24    deprive  such  person  of  rights to which he or his survivor
25    would have been entitled under the provisions of  Article  20
26    which  were in effect immediately prior to September 5, 1975,
27    if he was an employee immediately prior to that date.
28        (b)  If the combined retirement annuity benefits provided
29    under Public Act 79-782 are less than the combined retirement
30    annuity benefits that  would  have  been  payable  under  the
31    alternative formula of Section 20-122, the system under which
32    retirement  would  have  occurred,  as  provided  by  Section
33    20-122, shall increase the proportional retirement annuity by
 
                            -155-          LRB9101658EGfgam01
 1    an amount equal to the difference.
 2        (c)  Subsection (b) of this Section does not apply to the
 3    retirement  annuity  benefits  payable under the self-managed
 4    plan established under Section 15-158.2 of this Code.
 5    (Source: P.A. 86-820.)

 6        (40 ILCS 5/15-158.1 rep.)
 7        Section 15.  The Illinois  Pension  Code  is  amended  by
 8    repealing Section 15-158.1.

 9        Section  95.  The State Mandates Act is amended by adding
10    Section 8.24 as follows:

11        (30 ILCS 805/8.24 new)
12        Sec. 8.24. Exempt mandate.   Notwithstanding  Sections  6
13    and  8 of this Act, no reimbursement by the State is required
14    for  the  implementation  of  any  mandate  created  by  this
15    amendatory Act of the 91st General Assembly.

16        Section 99. Effective date.  This Act takes  effect  upon
17    becoming law.".

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