State of Illinois
92nd General Assembly
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92_HB2367sam001

 










                                           LRB9205287EGfgam07

 1                    AMENDMENT TO HOUSE BILL 2367

 2        AMENDMENT NO.     .  Amend House Bill 2367  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.   The  Illinois  Pension  Code is amended by
 5    changing Sections 7-132, 7-139, 7-146, 7-151,  7-152,  7-166,
 6    7-172, 15-148, and 15-154 as follows:

 7        (40 ILCS 5/7-132) (from Ch. 108 1/2, par. 7-132)
 8        Sec.    7-132.  Municipalities,   instrumentalities   and
 9    participating instrumentalities included and effective dates.

10    (A)  Municipalities and their instrumentalities.
11        (a)  The  following  described  municipalities,  but  not
12    including any with more than 1,000,000 inhabitants,  and  the
13    instrumentalities  thereof,  shall  be included within and be
14    subject to this Article beginning upon  the  effective  dates
15    specified by the Board:
16             (1)  Except    as    to   the   municipalities   and
17        instrumentalities  thereof  specifically  excluded  under
18        this Article, every  county  shall  be  subject  to  this
19        Article,  and all cities, villages and incorporated towns
20        having a population in excess  of  5,000  inhabitants  as
21        determined  by the last preceding decennial or subsequent
 
                            -2-            LRB9205287EGfgam07
 1        federal  census,  shall  be  subject  to   this   Article
 2        following  publication of the census by the Bureau of the
 3        Census.  Within 90 days after publication of the  census,
 4        the  Board  shall notify any municipality that has become
 5        subject to this Article as a result of that  census,  and
 6        shall provide information to the corporate authorities of
 7        the  municipality  explaining the duties and consequences
 8        of participation.  The notification shall also include  a
 9        proposed   date   upon   which   participation   by   the
10        municipality will commence.
11             However,  for any city, village or incorporated town
12        that attains a population over  5,000  inhabitants  after
13        having   provided   social   security  coverage  for  its
14        employees  under  the  Social  Security   Enabling   Act,
15        participation  under  this Article shall not be mandatory
16        but may be elected in accordance with subparagraph (3) or
17        (4) of this paragraph (a), whichever is applicable.
18             (2)  School districts, other than those specifically
19        excluded under this Article, shall  be  subject  to  this
20        Article,  without election, with respect to all employees
21        thereof.
22             (3)  Towns  and  all  other   bodies   politic   and
23        corporate  which are formed by vote of, or are subject to
24        control by, the electors in  towns  and  are  located  in
25        towns  which  are not participating municipalities on the
26        effective date of this Act, may become  subject  to  this
27        Article by election pursuant to Section 7-132.1.
28             (4)  Any   other  municipality  (together  with  its
29        instrumentalities),   other   than   those   specifically
30        excluded  from  participation  and  those  described   in
31        paragraph  (3)  above, may elect to be included either by
32        referendum under Section 7-134 or by the  adoption  of  a
33        resolution or ordinance by its governing body.  A copy of
34        such  resolution  or  ordinance  duly  authenticated  and
 
                            -3-            LRB9205287EGfgam07
 1        certified  by  the  clerk  of  the  municipality or other
 2        appropriate  official  of  its   governing   body   shall
 3        constitute  the  required  notice  to  the  board of such
 4        action.
 5        (b)  A municipality that is about to begin  participation
 6    shall submit to the Board an application to participate, in a
 7    form acceptable to the Board, not later than 90 days prior to
 8    the  proposed  effective  date  of  participation.  The Board
 9    shall act upon the application within  90  days,  and  if  it
10    finds   that  the  application  is  in  conformity  with  its
11    requirements  and   the   requirements   of   this   Article,
12    participation  by  the  applicant  shall  commence  on a date
13    acceptable to the municipality and specified  by  the  Board,
14    but  in  no  event  more  than  one  year  from  the  date of
15    application.
16        (c)  A participating municipality which succeeds  to  the
17    functions  of a participating municipality which is dissolved
18    or terminates its existence shall assume and  be  transferred
19    the  net accumulation balance in the municipality reserve and
20    the municipality account receivable balance of the terminated
21    municipality.
22        (d)  In the case  of  a  Veterans  Assistance  Commission
23    whose  employees were being treated by the Fund on January 1,
24    1990 as employees of the county served by the Commission, the
25    Fund may continue to treat  the  employees  of  the  Veterans
26    Assistance Commission as county employees for the purposes of
27    this  Article,  unless the Commission becomes a participating
28    instrumentality in accordance with  subsection  (B)  of  this
29    Section.

30    (B)  Participating instrumentalities.
31        (a)  The  participating  instrumentalities  designated in
32    paragraph (b) of this subsection shall be included within and
33    be subject to this Article if:
34             (1)  an  application  to  participate,  in  a   form
 
                            -4-            LRB9205287EGfgam07
 1        acceptable  to the Board and adopted by a two-thirds vote
 2        of the governing body, is  presented  to  the  Board  not
 3        later  than 90 days prior to the proposed effective date;
 4        and
 5             (2)  the Board finds  that  the  application  is  in
 6        conformity  with its requirements, that the applicant has
 7        reasonable expectation to continue as a political  entity
 8        for a period of at least 10 years and has the prospective
 9        financial   capacity  to  meet  its  current  and  future
10        obligations to the Fund, and that the actuarial soundness
11        of the Fund may be reasonably expected to  be  unimpaired
12        by approval of participation by the applicant.
13        The  Board  shall  notify  the  applicant of its findings
14    within 90 days after receiving the application,  and  if  the
15    Board   approves   the   application,  participation  by  the
16    applicant shall commence on the effective date  specified  by
17    the Board.
18        (b)  The  following  participating  instrumentalities, so
19    long as they meet the requirements of Section 7-108  and  the
20    area  served  by  them  or  within  their jurisdiction is not
21    located entirely within a municipality having more  than  one
22    million inhabitants, may be included hereunder:
23             i.  Township School District Trustees.
24             ii.  Multiple   County   and   Consolidated   Health
25        Departments  created  under Division 5-25 of the Counties
26        Code or its predecessor law.
27             iii.  Public Building Commissions created under  the
28        Public  Building  Commission Act, and located in counties
29        of less than 1,000,000 inhabitants.
30             iv.  A  multitype,   consolidated   or   cooperative
31        library  system created under the Illinois Library System
32        Act.  Any  library  system  created  under  the  Illinois
33        Library System Act that has one or more predecessors that
34        participated in the Fund may participate in the Fund upon
 
                            -5-            LRB9205287EGfgam07
 1        application.   The  Board  shall establish procedures for
 2        implementing the transfer of rights and obligations  from
 3        the predecessor system to the successor system.
 4             v.  Regional   Planning  Commissions  created  under
 5        Division 5-14 of the Counties  Code  or  its  predecessor
 6        law.
 7             vi.  Local  Public Housing Authorities created under
 8        the Housing Authorities Act, located in counties of  less
 9        than 1,000,000 inhabitants.
10             vii.  Illinois Municipal League.
11             viii.  Northeastern   Illinois   Metropolitan   Area
12        Planning Commission.
13             ix.  Southwestern    Illinois    Metropolitan   Area
14        Planning Commission.
15             x.  Illinois Association of Park Districts.
16             xi.  Illinois Supervisors, County Commissioners  and
17        Superintendents of Highways Association.
18             xii.  Tri-City Regional Port District.
19             xiii.  An     association,     or     not-for-profit
20        corporation,  membership  in  which  is  authorized under
21        Section 85-15 of the Township Code.
22             xiv.  Drainage   Districts   operating   under   the
23        Illinois Drainage Code.
24             xv.  Local mass transit districts created under  the
25        Local Mass Transit District Act.
26             xvi.  Soil  and water conservation districts created
27        under the Soil and Water Conservation Districts Law.
28             xvii.  Commissions created to provide  water  supply
29        or  sewer services or both under Division 135 or Division
30        136 of Article 11 of the Illinois Municipal Code.
31             xviii.  Public water  districts  created  under  the
32        Public Water District Act.
33             xix.  Veterans  Assistance  Commissions  established
34        under  Section  9 of the Military Veterans Assistance Act
 
                            -6-            LRB9205287EGfgam07
 1        that serve  counties  with  a  population  of  less  than
 2        1,000,000.
 3             xx.  The  governing  body of an entity, other than a
 4        vocational  education  cooperative,  created   under   an
 5        intergovernmental   cooperative   agreement   established
 6        between    participating    municipalities    under   the
 7        Intergovernmental Cooperation Act, which by the terms  of
 8        the  agreement  is the employer of the persons performing
 9        services under the agreement under the usual  common  law
10        rules  determining  the  employer-employee  relationship.
11        The   governing   body   of   such  an  intergovernmental
12        cooperative entity established prior to July 1, 1988  may
13        make  participation  retroactive to the effective date of
14        the  agreement  and,  if  so,  the  effective   date   of
15        participation  shall be the date the required application
16        is filed with the fund.  If any such entity is unable  to
17        pay the required employer contributions to the fund, then
18        the  participating  municipalities  shall make payment of
19        the required contributions  and  the  payments  shall  be
20        allocated  as  provided  in  the  agreement or, if not so
21        provided, equally among them.
22             xxi.  The Illinois Municipal Electric Agency.
23             xxii.  The Waukegan Port District.
24             xxiii.  The Fox Waterway Agency  created  under  the
25        Fox Waterway Agency Act.
26             xxiv.  The Illinois Municipal Gas Agency.
27             xxv.  The Kaskaskia Regional Port District.
28             xxvi.  The    Southwestern    Illinois   Development
29        Authority.
30        (c)  The governing  boards  of  special  education  joint
31    agreements  created under Section 10-22.31 of the School Code
32    without designation of an administrative  district  shall  be
33    included   within   and   be   subject  to  this  Article  as
34    participating  instrumentalities  when  the  joint  agreement
 
                            -7-            LRB9205287EGfgam07
 1    becomes effective.  However, the governing board of any  such
 2    special  education joint agreement in effect before September
 3    5, 1975 shall not be subject to this Article unless the joint
 4    agreement is modified by the school districts to provide that
 5    the governing board is subject to  this  Article,  except  as
 6    otherwise provided by this Section.
 7        The  governing board of the Special Education District of
 8    Lake County  shall  become  subject  to  this  Article  as  a
 9    participating    instrumentality    on    July    1,    1997.
10    Notwithstanding  subdivision  (a)1  of  Section 7-139, on the
11    effective date of participation, employees of  the  governing
12    board  of the Special Education District of Lake County shall
13    receive creditable service for their prior service with  that
14    employer,  up  to  a maximum of 5 years, without any employee
15    contribution.  Employees may establish creditable service for
16    the remainder of their prior service with that  employer,  if
17    any,   by   applying   in  writing  and  paying  an  employee
18    contribution in an amount determined by the  Fund,  based  on
19    the  employee  contribution  rates  in  effect at the time of
20    application for the creditable  service  and  the  employee's
21    salary  rate  on the effective date of participation for that
22    employer, plus interest at the effective rate from  the  date
23    of the prior service to the date of payment.  Application for
24    this creditable service must be made before July 1, 1998; the
25    payment  may  be made at any time while the employee is still
26    in service.  The employer may  elect  to  make  the  required
27    contribution on behalf of the employee.
28        The   governing   board  of  a  special  education  joint
29    agreement created under Section 10-22.31 of the  School  Code
30    for  which an administrative district has been designated, if
31    there are employees of the cooperative educational entity who
32    are not employees of the administrative district,  may  elect
33    to  participate  in  the  Fund  and  be  included within this
34    Article as a participating instrumentality, subject  to  such
 
                            -8-            LRB9205287EGfgam07
 1    application procedures and rules as the Board may prescribe.
 2        The Boards of Control of cooperative or joint educational
 3    programs  or  projects created and administered under Section
 4    3-15.14 of the School Code, whether or not the Boards  act as
 5    their own administrative district, shall be  included  within
 6    and   be   subject   to   this   Article   as   participating
 7    instrumentalities   when   the   agreement  establishing  the
 8    cooperative or joint educational program or  project  becomes
 9    effective.
10        The   governing   board  of  a  special  education  joint
11    agreement entered into after  June  30,  1984  and  prior  to
12    September  17,  1985 which provides for representation on the
13    governing board by less than all the participating  districts
14    shall  be  included  within  and subject to this Article as a
15    participating instrumentality.  Such participation  shall  be
16    effective   as  of  the  date  the  joint  agreement  becomes
17    effective.
18        The  governing  boards  of  educational  service  centers
19    established under Section 2-3.62 of the School Code shall  be
20    included  within and subject to this Article as participating
21    instrumentalities.   The  governing  boards   of   vocational
22    education    cooperative   agreements   created   under   the
23    Intergovernmental Cooperation Act and approved by  the  State
24    Board of Education shall be included within and be subject to
25    this Article as participating instrumentalities.  If any such
26    governing  boards  or boards of control are unable to pay the
27    required employer contributions to the fund, then the  school
28    districts  served  by  such  boards  shall  make  payment  of
29    required  contributions  as  provided  in Section 7-172.  The
30    payments  shall  be  allocated  among  the   several   school
31    districts  in proportion to the number of students in average
32    daily attendance for the  last  full  school  year  for  each
33    district  in  relation  to  the  total  number of students in
34    average attendance for such period for all districts served.
 
                            -9-            LRB9205287EGfgam07
 1    If such educational  service  centers,  vocational  education
 2    cooperatives  or cooperative or joint educational programs or
 3    projects created and administered under  Section  3-15.14  of
 4    the  School  Code  are  dissolved, the assets and obligations
 5    shall  be  distributed  among  the  districts  in  the   same
 6    proportions unless otherwise provided.
 7        (d)  The  governing  boards  of  special recreation joint
 8    agreements created under Section 8-10b of the  Park  District
 9    Code,  operating  without  designation  of  an administrative
10    district  or  an  administrative  municipality  appointed  to
11    administer the program operating under the authority of  such
12    joint  agreement  shall  be included within and be subject to
13    this Article  as  participating  instrumentalities  when  the
14    joint  agreement  becomes  effective.  However, the governing
15    board of any  such  special  recreation  joint  agreement  in
16    effect  before  January  1, 1980 shall not be subject to this
17    Article unless  the  joint  agreement  is  modified,  by  the
18    districts   and  municipalities  which  are  parties  to  the
19    agreement, to provide that the governing board is subject  to
20    this Article.
21        If   the   Board   returns   any  employer  and  employee
22    contributions to any  employer  which  erroneously  submitted
23    such  contributions  on  behalf of a special recreation joint
24    agreement, the Board shall include interest computed from the
25    end of each year to the date of payment, not  compounded,  at
26    the rate of 7% per annum.
27        (e)  Each  multi-township  assessment district, the board
28    of trustees of which has adopted this  Article  by  ordinance
29    prior   to   April   1,   1982,   shall  be  a  participating
30    instrumentality included within and subject to  this  Article
31    effective  December 1, 1981. The contributions required under
32    Section 7-172 shall be included in the budget prepared  under
33    and allocated in accordance with Section 2-30 of the Property
34    Tax Code.
 
                            -10-           LRB9205287EGfgam07
 1        (f)  Beginning   January   1,   1992,   each  prospective
 2    participating municipality or  participating  instrumentality
 3    shall  pay  to the Fund the cost, as determined by the Board,
 4    of a study prepared by the Fund or its actuary, detailing the
 5    prospective costs of participation in the Fund to be expected
 6    by the municipality or instrumentality.
 7    (Source: P.A. 89-162, eff. 7-19-95; 90-511, eff. 8-22-97.)

 8        (40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
 9        Sec. 7-139.  Credits and creditable service to employees.
10        (a)  Each participating employee shall be granted credits
11    and creditable  service,  for  purposes  of  determining  the
12    amount of any annuity or benefit to which he or a beneficiary
13    is entitled, as follows:
14             1.  For  prior  service: Each participating employee
15        who is an employee of  a  participating  municipality  or
16        participating instrumentality on the effective date shall
17        be  granted  creditable  service,  but  no  credits under
18        paragraph 2 of this subsection (a), for periods of  prior
19        service  for which credit has not been received under any
20        other pension fund or retirement system established under
21        this Code, as follows:
22             If the  effective  date  of  participation  for  the
23        participating      municipality      or     participating
24        instrumentality  is  on  or  before  January   1,   1998,
25        creditable service shall be granted for the entire period
26        of  prior service with that employer without any employee
27        contribution.
28             If the  effective  date  of  participation  for  the
29        participating      municipality      or     participating
30        instrumentality is  after  January  1,  1998,  creditable
31        service  shall  be granted for the last 20% of the period
32        of prior service with that employer, but no more  than  5
33        years,    without    any    employee   contribution.    A
 
                            -11-           LRB9205287EGfgam07
 1        participating employee may establish  creditable  service
 2        for  the  remainder  of  the period of prior service with
 3        that  employer  by  making  an  application  in  writing,
 4        accompanied by payment of an employee contribution in  an
 5        amount  determined  by  the  Fund,  based on the employee
 6        contribution rates in effect at the time  of  application
 7        for the creditable service and the employee's salary rate
 8        on the effective date of participation for that employer,
 9        plus  interest at the effective rate from the date of the
10        prior service to the date of  payment.   Application  for
11        this creditable service may be made at any time while the
12        employee is still in service.
13             Any  person  who has withdrawn from the service of a
14        participating     municipality      or      participating
15        instrumentality prior to the effective date, who reenters
16        the  service  of  the  same municipality or participating
17        instrumentality after the effective date  and  becomes  a
18        participating  employee is entitled to creditable service
19        for  prior  service  as  otherwise   provided   in   this
20        subdivision  (a)(1)  only if he or she renders 2 years of
21        service as a participating employee after  the  effective
22        date.  Application for such service must be made while in
23        a  participating  status.   The salary rate to be used in
24        the calculation of the required employee contribution, if
25        any, shall be the employee's salary rate at the  time  of
26        first  reentering  service  with  the  employer after the
27        employer's effective date of participation.
28             2.  For current service, each participating employee
29        shall be credited with:
30                  a.  Additional credits of amounts equal to each
31             payment of additional  contributions  received  from
32             him   under  Section  7-173,  as  of  the  date  the
33             corresponding payment of earnings is payable to him.
34                  b.  Normal credits of  amounts  equal  to  each
 
                            -12-           LRB9205287EGfgam07
 1             payment  of  normal contributions received from him,
 2             as of the date the corresponding payment of earnings
 3             is payable to him, and normal contributions made for
 4             the purpose  of  establishing  out-of-state  service
 5             credits  as permitted under the conditions set forth
 6             in paragraph 6 of this subsection (a).
 7                  c.  Municipality credits in an amount equal  to
 8             1.4   times   the   normal   credits,  except  those
 9             established by out-of-state service credits,  as  of
10             the  date  of  computation  of  any benefit if these
11             credits would increase the benefit.
12                  d.  Survivor credits equal to each  payment  of
13             survivor    contributions    received    from    the
14             participating   employee   as   of   the   date  the
15             corresponding payment of earnings  is  payable,  and
16             survivor  contributions  made  for  the  purpose  of
17             establishing out-of-state service credits.
18             3.  For periods of temporary and total and permanent
19        disability  benefits,  each employee receiving disability
20        benefits shall be  granted  creditable  service  for  the
21        period  during  which  disability  benefits  are payable.
22        Normal and survivor  credits,  based  upon  the  rate  of
23        earnings  applied  for disability benefits, shall also be
24        granted if such credits would result in a higher  benefit
25        to any such employee or his beneficiary.
26             4.  For  authorized leave of absence without pay:  A
27        participating  employee  shall  be  granted  credits  and
28        creditable service for periods  of  authorized  leave  of
29        absence without pay under the following conditions:
30                  a.  An  application  for credits and creditable
31             service is submitted to the board while the employee
32             is in a status of active employment,  and  within  2
33             years  after  termination  of  the  leave of absence
34             period for which credits and creditable service  are
 
                            -13-           LRB9205287EGfgam07
 1             sought.
 2                  b.  Not   more   than  12  complete  months  of
 3             creditable service for authorized leave  of  absence
 4             without   pay  shall  be  counted  for  purposes  of
 5             determining any benefits payable under this Article.
 6                  c.  Credits and  creditable  service  shall  be
 7             granted  for  leave of absence only if such leave is
 8             approved by the governing body of the  municipality,
 9             including  approval of the estimated cost thereof to
10             the municipality as  determined  by  the  fund,  and
11             employee   contributions,   plus   interest  at  the
12             effective rate applicable for each year from the end
13             of the period of leave to date of payment, have been
14             paid to the fund in accordance with  Section  7-173.
15             The   contributions   shall  be  computed  upon  the
16             assumption earnings continued during the  period  of
17             leave at the rate in effect when the leave began.
18                  d.  Benefits  under  the provisions of Sections
19             7-141, 7-146, 7-150 and 7-163 shall  become  payable
20             to  employees  on  authorized  leave  of absence, or
21             their designated beneficiary, only if such leave  of
22             absence is creditable hereunder, and if the employee
23             has  at  least  one year of creditable service other
24             than the service granted for leave of absence.   Any
25             employee  contributions due may be deducted from any
26             benefits payable.
27                  e.  No credits or creditable service  shall  be
28             allowed  for leave of absence without pay during any
29             period of prior service.
30             5.  For military service: The governing  body  of  a
31        municipality  or  participating instrumentality may elect
32        to allow creditable service  to  participating  employees
33        who  leave  their employment to serve in the armed forces
34        of the United States for all  periods  of  such  service,
 
                            -14-           LRB9205287EGfgam07
 1        provided  that  the  person  returns to active employment
 2        within 90 days after completion of full time active duty,
 3        but no creditable service shall be  allowed  such  person
 4        for  any  period that can be used in the computation of a
 5        pension or any other pay or benefit, other than  pay  for
 6        active  duty,  for  service  in  any  branch of the armed
 7        forces  of  the  United  States.   If  necessary  to  the
 8        computation of any benefit,  the  board  shall  establish
 9        municipality  credits  for  participating employees under
10        this  paragraph  on  the  assumption  that  the  employee
11        received earnings at the rate received  at  the  time  he
12        left  the  employment  to  enter  the  armed  forces.   A
13        participating  employee  in the armed forces shall not be
14        considered an employee during such period of service  and
15        no  additional  death  and  no  disability  benefits  are
16        payable for death or disability during such period.
17             Any  participating  employee who left his employment
18        with a municipality or participating  instrumentality  to
19        serve  in  the  armed forces of the United States and who
20        again became a  participating  employee  within  90  days
21        after completion of full time active duty by entering the
22        service  of  a  different  municipality  or participating
23        instrumentality, which has elected  to  allow  creditable
24        service   for  periods  of  military  service  under  the
25        preceding paragraph, shall  also  be  allowed  creditable
26        service  for  his  period of military service on the same
27        terms that would apply if he had  been  employed,  before
28        entering   military   service,  by  the  municipality  or
29        instrumentality which employed  him  after  he  left  the
30        military  service  and  the  employer  costs  arising  in
31        relation  to  such  grant  of creditable service shall be
32        charged   to   and   paid   by   that   municipality   or
33        instrumentality.
34             Notwithstanding  the  foregoing,  any  participating
 
                            -15-           LRB9205287EGfgam07
 1        employee shall  be  entitled  to  creditable  service  as
 2        required  by  any  federal  law relating to re-employment
 3        rights of persons who served in the United  States  Armed
 4        Services.   Such creditable service shall be granted upon
 5        payment by the member of an amount equal to the  employee
 6        contributions  which  would  have  been  required had the
 7        employee  continued  in  service  at  the  same  rate  of
 8        earnings during the military leave period, plus  interest
 9        at the effective rate.
10             5.1.  In   addition   to   any   creditable  service
11        established under paragraph 5  of  this  subsection  (a),
12        creditable  service may be granted for up to 24 months of
13        service in the armed forces of the United States.
14             In order to receive creditable service for  military
15        service   under   this  paragraph  5.1,  a  participating
16        employee must (1)  apply  to  the  Fund  in  writing  and
17        provide   evidence   of  the  military  service  that  is
18        satisfactory  to  the  Board;  (2)  obtain  the   written
19        approval   of   the   current   employer;  and  (3)  make
20        contributions to the  Fund  equal  to  (i)  the  employee
21        contributions  that  would  have  been  required  had the
22        service been rendered as a member, plus  (ii)  an  amount
23        determined  by  the  board  to be equal to the employer's
24        normal cost of the benefits  accrued  for  that  military
25        service,  plus  (iii) interest on items (i) and (ii) from
26        the date of first membership in the Fund to the  date  of
27        payment.   If  payment  is made during the 6-month period
28        that begins 3 months after the  effective  date  of  this
29        amendatory Act of 1997, the required interest shall be at
30        the   rate   of   2.5%  per  year,  compounded  annually;
31        otherwise, the required interest shall be  calculated  at
32        the regular interest rate.
33             6.  For  out-of-state  service:  Creditable  service
34        shall  be granted for service rendered to an out-of-state
 
                            -16-           LRB9205287EGfgam07
 1        local governmental body under the  following  conditions:
 2        The   employee   had  participated  and  has  irrevocably
 3        forfeited all rights  to  benefits  in  the  out-of-state
 4        public  employees  pension  system; the governing body of
 5        his   participating   municipality   or   instrumentality
 6        authorizes the employee to establish  such  service;  the
 7        employee   has   2   years   current  service  with  this
 8        municipality  or   participating   instrumentality;   the
 9        employee makes a payment of contributions, which shall be
10        computed  at  8% (normal) plus 2% (survivor) times length
11        of service purchased times the average rate  of  earnings
12        for the first 2 years of service with the municipality or
13        participating   instrumentality   whose   governing  body
14        authorizes the service established plus interest  at  the
15        effective  rate on the date such credits are established,
16        payable from the date the employee completes the required
17        2 years of current service to date  of  payment.   In  no
18        case  shall more than 120 months of creditable service be
19        granted under this provision.
20             7.  For retroactive service:  Any employee who could
21        have  but  did  not  elect  to  become  a   participating
22        employee,  or  who  should have been a participant in the
23        Municipal  Public  Utilities  Annuity  and  Benefit  Fund
24        before that fund was superseded, may  receive  creditable
25        service  for  the  period  of  service  not  to exceed 50
26        months; however, a current or former elected or appointed
27        official of a  participating  municipality  county  board
28        member  may  establish  credit under this paragraph 7 for
29        more than 50 months of service as  an  official  of  that
30        municipality,  a member of the county board if the excess
31        over 50 months is approved by resolution of the governing
32        body of the affected municipality county board filed with
33        the Fund before January 1, 2002 1999.
34             Any employee who is a participating employee  on  or
 
                            -17-           LRB9205287EGfgam07
 1        after  September  24,  1981  and  who  was  excluded from
 2        participation by the age restrictions removed  by  Public
 3        Act 82-596 may receive creditable service for the period,
 4        on  or  after  January  1,  1979,  excluded  by  the  age
 5        restriction  and,  in  addition, if the governing body of
 6        the   participating   municipality    or    participating
 7        instrumentality  elects  to  allow creditable service for
 8        all employees excluded by the age  restriction  prior  to
 9        January  1,  1979, for service during the period prior to
10        that date excluded by the age restriction.  Any  employee
11        who   was   excluded   from   participation  by  the  age
12        restriction removed by Public Act 82-596 and who is not a
13        participating employee on or after September 24, 1981 may
14        receive creditable service for service after  January  1,
15        1979.  Creditable  service  under this paragraph shall be
16        granted upon payment of the employee contributions  which
17        would  have  been  required  had  he  participated,  with
18        interest at the effective rate for each year from the end
19        of the period of service established to date of payment.
20             8.  For    accumulated   unused   sick   leave:    A
21        participating employee who is applying for  a  retirement
22        annuity  shall be entitled to creditable service for that
23        portion of the employee's accumulated unused  sick  leave
24        for which payment is not received, as follows:
25                  a.  Sick  leave  days shall be limited to those
26             accumulated under a sick leave plan established by a
27             participating    municipality    or    participating
28             instrumentality which is available to all  employees
29             or a class of employees.
30                  b.  Only  sick  leave  days  accumulated with a
31             participating    municipality    or    participating
32             instrumentality  with  which  the  employee  was  in
33             service within 60 days of the effective date of  his
34             retirement   annuity   shall  be  credited;  If  the
 
                            -18-           LRB9205287EGfgam07
 1             employee was in service with more than one  employer
 2             during this period only the sick leave days with the
 3             employer  with  which  the employee has the greatest
 4             number  of  unpaid  sick   leave   days   shall   be
 5             considered.
 6                  c.  The  creditable  service  granted  shall be
 7             considered solely for the purpose of  computing  the
 8             amount  of  the  retirement annuity and shall not be
 9             used  to  establish  any  minimum   service   period
10             required  by  any  provision of the Illinois Pension
11             Code, the effective date of the retirement  annuity,
12             or the final rate of earnings.
13                  d.  The creditable service shall be at the rate
14             of  1/20 of a month for each full sick day, provided
15             that no more than 12 months may  be  credited  under
16             this subdivision 8.
17                  e.  Employee   contributions   shall   not   be
18             required   for   creditable   service   under   this
19             subdivision 8.
20                  f.  Each    participating    municipality   and
21             participating instrumentality with which an employee
22             has service within 60 days of the effective date  of
23             his  retirement  annuity  shall certify to the board
24             the number of accumulated  unpaid  sick  leave  days
25             credited  to the employee at the time of termination
26             of service.
27             9.  For service  transferred  from  another  system:
28        Credits  and  creditable  service  shall  be  granted for
29        service under Article 3, 4, 5, 14 or 16 of this  Act,  to
30        any  active  member  of  this  Fund,  and to any inactive
31        member who has been a county sheriff,  upon  transfer  of
32        such credits pursuant to Section 3-110.3, 4-108.3, 5-235,
33        14-105.6  or  16-131.4,  and payment by the member of the
34        amount  by  which   (1)   the   employer   and   employee
 
                            -19-           LRB9205287EGfgam07
 1        contributions  that  would  have  been required if he had
 2        participated in this Fund as a sheriff's law  enforcement
 3        employee  during  the  period  for  which credit is being
 4        transferred, plus interest thereon at the effective  rate
 5        for  each  year,   compounded  annually, from the date of
 6        termination of the service  for  which  credit  is  being
 7        transferred  to  the  date  of  payment,  exceeds (2) the
 8        amount actually transferred to the Fund. Such transferred
 9        service shall be deemed to be service as a sheriff's  law
10        enforcement employee for the purposes of Section 7-142.1.
11        (b)  Creditable service - amount:
12             1.  One month of creditable service shall be allowed
13        for  each  month  for which a participating employee made
14        contributions as required under  Section  7-173,  or  for
15        which  creditable service is otherwise granted hereunder.
16        Not more than 1 month of service shall  be  credited  and
17        counted for 1 calendar month, and not more than 1 year of
18        service  shall  be  credited and counted for any calendar
19        year.  A calendar month means a nominal  month  beginning
20        on  the  first  day  thereof, and a calendar year means a
21        year beginning January 1 and ending December 31.
22             2.  A seasonal employee shall be given 12 months  of
23        creditable  service if he renders the number of months of
24        service normally required by the position in  a  12-month
25        period  and he remains in service for the entire 12-month
26        period.  Otherwise a fractional year of  service  in  the
27        number of months of service rendered shall be credited.
28             3.  An   intermittent   employee   shall   be  given
29        creditable service for  only  those  months  in  which  a
30        contribution is made under Section 7-173.
31        (c)  No   application   for   correction  of  credits  or
32    creditable service  shall  be  considered  unless  the  board
33    receives   an   application  for  correction  while  (1)  the
34    applicant  is  a  participating  employee   and   in   active
 
                            -20-           LRB9205287EGfgam07
 1    employment    with    a    participating    municipality   or
 2    instrumentality, or  (2)  while  the  applicant  is  actively
 3    participating in a pension fund or retirement system which is
 4    a   participating   system   under   the  Retirement  Systems
 5    Reciprocal Act.  A participating employee or other  applicant
 6    shall not be entitled to credits or creditable service unless
 7    the required employee contributions are made in a lump sum or
 8    in installments made in accordance with board rule.
 9        (d)  Upon  the granting of a retirement, surviving spouse
10    or child annuity, a death benefit or a separation benefit, on
11    account of any employee, all individual  accumulated  credits
12    shall  thereupon terminate. Upon the withdrawal of additional
13    contributions, the credits applicable thereto shall thereupon
14    terminate.   Terminated  credits  shall  not  be  applied  to
15    increase the benefits any remaining employee would  otherwise
16    receive under this Article.
17    (Source: P.A. 90-448, eff. 8-16-97; 91-887, eff. 7-6-00.)

18        (40 ILCS 5/7-146) (from Ch. 108 1/2, par. 7-146)
19        Sec. 7-146.  Temporary disability benefits - Eligibility.
20    Temporary   disability   benefits   shall   be   payable   to
21    participating employees as hereinafter provided.
22        (a)  The   participating  employee  shall  be  considered
23    temporarily disabled if:
24             1.  He is  unable  to  perform  the  duties  of  any
25        position which might reasonably be assigned to him by his
26        employing  municipality  or  instrumentality  thereof  or
27        participating  instrumentality  due to mental or physical
28        disability caused by bodily injury or disease, other than
29        as a result of  self-inflicted  injury  or  addiction  to
30        narcotic drugs;
31             2.  The  Board  has  received written certifications
32        from at least one 1 licensed and practicing physician and
33        the governing  body  of  the  employing  municipality  or
 
                            -21-           LRB9205287EGfgam07
 1        instrumentality  thereof or participating instrumentality
 2        stating that the employee meets the conditions set  forth
 3        in subparagraph 1 of this paragraph (a).
 4        (b)  A temporary disability benefit shall be payable to a
 5    temporarily disabled employee provided:
 6             1.  He:
 7                  (i)  has   at   least   one   year  of  service
 8             immediately preceding  at  the  date  the  temporary
 9             disability  was  incurred and has made contributions
10             to the fund for at least the  number  of  months  of
11             service  normally  required in his position during a
12             12-month period, or has at least 5 years of  service
13             credit,  the last year of which immediately precedes
14             such date; or
15                  (ii)  had qualified under clause (i) above, but
16             had  an  interruption  in  service  with  the   same
17             participating    municipality    or    participating
18             instrumentality  of not more than 3 months in the 12
19             months preceding the date the  temporary  disability
20             was  incurred and was not paid a separation benefit;
21             or
22                  (iii)  had qualified under  clause  (i)  above,
23             but  had  an  interruption after 20 or more years of
24             creditable  service,  was  not  paid  a   separation
25             benefit,  and  returned to service prior to the date
26             the disability was incurred.
27             Item (iii) of this subdivision shall  apply  to  all
28        employees  whose  disabilities  were incurred on or after
29        July 1, 1985, and any such employee who becomes  eligible
30        for  a  disability  benefit  under  item  (iii)  shall be
31        entitled to receive a lump sum payment of any accumulated
32        disability benefits which may accrue from  the  date  the
33        disability  was incurred until the effective date of this
34        amendatory Act of 1987.
 
                            -22-           LRB9205287EGfgam07
 1             Periods of qualified  leave  granted  in  compliance
 2        with  the  federal  Family and Medical Leave Act shall be
 3        ignored  for  purposes  of  determining  the  number   of
 4        consecutive  months  of employment under this subdivision
 5        (b)1.
 6             2.  He has been temporarily disabled for at least 30
 7        days, except where a former temporary  or  permanent  and
 8        total disability has reoccurred within 6 months after the
 9        employee has returned to service.
10             3.  He is receiving no earnings from a participating
11        municipality  or instrumentality thereof or participating
12        instrumentality, except as allowed under  subsection  (f)
13        of Section 7-152.
14             4.  He  has  not  refused  to submit to a reasonable
15        physical examination by  a  physician  appointed  by  the
16        Board.
17             5.  His  disability is not the result of a mental or
18        physical condition which existed on the earliest date  of
19        service   from   which   he  has  uninterrupted  service,
20        including prior service, at the date of  his  disability,
21        provided  that  this  limitation is not applicable if the
22        date of disability is after December 31, 2001, nor is  it
23        shall  not be applicable to a participating employee who:
24        (i) on the date of disability has 5 years  of  creditable
25        service,  exclusive  of creditable service for periods of
26        disability; or (ii) received no medical treatment for the
27        condition for the  3  years  immediately  prior  to  such
28        earliest date of service.
29             6.  He  is  not  separated  from  the service of the
30        participating municipality or instrumentality thereof  or
31        participating  instrumentality  which employed him on the
32        date his  temporary  disability  was  incurred;  for  the
33        purposes  of  payment of temporary disability benefits, a
34        participating employee, whose employment relationship  is
 
                            -23-           LRB9205287EGfgam07
 1        terminated by his employing municipality, shall be deemed
 2        not  to  be  separated  from the service of his employing
 3        municipality  or  participating  instrumentality  if   he
 4        continues  disabled  by the same condition and so long as
 5        he is otherwise entitled to such disability benefit.
 6    (Source: P.A. 90-766, eff. 8-14-98.)

 7        (40 ILCS 5/7-151) (from Ch. 108 1/2, par. 7-151)
 8        Sec. 7-151.  Total and permanent  disability  benefits  -
 9    Commencement  and  duration.   Permanent  disability benefits
10    shall be payable:
11        (a)  As of the date  temporary  disability  benefits  are
12    exhausted;
13        (b)  Once a month as of the end of each month;
14        (c)  For  less  than  a month in a fraction equal to that
15    created by making the number of days  of  disability  in  the
16    month  the  numerator and the number of the days in the month
17    the denominator;
18        (d)  To the beneficiary of a deceased  employee  for  the
19    unpaid amount accrued to the date of death;
20        (e)  While total and permanent disability continues;
21        (f)  For  the  period ending on the last day of the month
22    which is the later of the following:
23        1.  the month that the participating employee attains the
24    age for a full Social Security old-age insurance benefit  age
25    65;
26        2.  the  month  which  is  5  years  after  the month the
27    participating employee became disabled as provided in Section
28    7-146.
29    (Source: P.A. 86-272.)

30        (40 ILCS 5/7-152) (from Ch. 108 1/2, par. 7-152)
31        Sec. 7-152.  Disability benefits - Amount.  The amount of
32    the monthly temporary  and  total  and  permanent  disability
 
                            -24-           LRB9205287EGfgam07
 1    benefits  shall  be 50% of the participating employee's final
 2    rate of earnings on the date disability was incurred, subject
 3    to the following adjustments:
 4        (a)  If the participating employee has a reduced rate  of
 5    earnings  at  the  time  his  employment  ceases  because  of
 6    disability,  the  rate  of  earnings shall be computed on the
 7    basis of his last 12 month period of full-time employment.
 8        (b)  If the participating  employee  is  eligible  for  a
 9    disability benefit under the federal Social Security Act, the
10    amount  of  monthly disability benefits shall be reduced, but
11    not to less than $10 a month,  by  the  amount  he  would  be
12    eligible to receive as a disability benefit under the federal
13    Social  Security  Act, whether or not because of service as a
14    covered employee under this Article.  The reduction shall  be
15    effective as of the month the employee is eligible for Social
16    Security  disability  benefits.   The  Board  may  make  such
17    reduction  if it appears that the employee may be so eligible
18    pending determination of eligibility and make an  appropriate
19    adjustment  if  necessary  after  such determination.  If the
20    employee, because of his  refusal  to  accept  rehabilitation
21    services  under the federal Rehabilitation Act of 1973 or the
22    federal Social Security  Act,  or  because  he  is  receiving
23    workers'  compensation  benefits,  has  his  Social  Security
24    benefits  reduced or terminated, the disability benefit shall
25    be reduced as if the employee were receiving his full  Social
26    Security disability benefit.
27        (c)  If  the  employee  (i)  is  over  the age for a full
28    Social Security old-age insurance benefit age  65,  (ii)  was
29    not   eligible  for  a  Social  Security  disability  benefit
30    immediately before reaching that age, age  65  and  (iii)  is
31    eligible   for  a  full  Social  Security  old-age  insurance
32    benefit, then the amount of the  monthly  disability  benefit
33    shall  be  reduced,  but not to less than $10 a month, by the
34    amount of the old-age insurance benefit to which the employee
 
                            -25-           LRB9205287EGfgam07
 1    is entitled, whether or not  the  employee  applies  for  the
 2    Social  Security  old-age  insurance benefit.  This reduction
 3    shall be made in the month  after  the  month  in  which  the
 4    employee  attains  the age for a full Social Security old-age
 5    insurance benefit age  65.   However,  if  the  employee  was
 6    receiving   a   Social  Security  disability  benefit  before
 7    reaching the age for a full Social Security old-age insurance
 8    benefit age 65, the disability benefits after that age age 65
 9    shall be determined under subsection (b) of this Section.
10        (d)  The amount  of  disability  benefits  shall  not  be
11    reduced  by  reason of any increase, other than one resulting
12    from a correction in the  employee's  wage  records,  in  the
13    amount  of disability or old-age insurance benefits under the
14    federal Social Security Act  which  takes  effect  after  the
15    month  of the initial reduction under paragraph (b) or (c) of
16    this Section.
17        (e)  If the employee in any month  receives  compensation
18    from  gainful  employment which is more than 25% of the final
19    rate of earnings on which his disability benefits are  based,
20    the temporary disability benefit payable for that month shall
21    be reduced by an amount equal to such excess.
22        (f)  An  employee  who  has been disabled for at least 30
23    days may return to work for the employer on a part-time basis
24    for a trial work period of up to one year, during  which  the
25    disability shall be deemed to continue.  Service credit shall
26    continue  to accrue and the disability benefit shall continue
27    to be paid during the trial  work  period,  but  the  benefit
28    shall  be  reduced  by the amount of earnings received by the
29    disabled employee.  Return to service on  a  full-time  basis
30    shall  terminate  the trial work period.  The reduction under
31    this subsection (f) shall be in lieu  of  the  reduction,  if
32    any, required under subsection (e).
33        (g)  Beginning January 1, 1988, every total and permanent
34    disability  benefit  shall be increased by 3% of the original
 
                            -26-           LRB9205287EGfgam07
 1    amount of the benefit, not  compounded,  on  each  January  1
 2    following  the  later of (1) the date the total and permanent
 3    disability benefit begins, or (2)  the  date  the  total  and
 4    permanent disability benefit would have begun if the employee
 5    had been paid a temporary disability benefit for 30 months.
 6    (Source: P.A. 87-740.)

 7        (40 ILCS 5/7-166) (from Ch. 108 1/2, par. 7-166)
 8        Sec.    7-166.   Separation   benefits   -   Eligibility.
 9    Separation benefits  shall  be  payable  as  hereinafter  set
10    forth:
11             1.  Upon   separation   from   the  service  of  all
12        participating   municipalities   and    instrumentalities
13        thereof    and   participating   instrumentalities,   any
14        participating employee who, on the  date  of  application
15        for such benefit, is not entitled to a retirement annuity
16        shall be entitled to a separation benefit.;
17             2.  Upon   separation   from   the  service  of  all
18        participating   municipalities   and    instrumentalities
19        thereof    and   participating   instrumentalities,   any
20        participating employee who, on the  date  of  application
21        for  such benefit, is entitled to a retirement annuity of
22        less than $30 per month for life  may  elect  to  take  a
23        separation benefit in lieu of the retirement annuity.
24             3.  Upon   separation   from   the  service  of  all
25        participating   municipalities   and    instrumentalities
26        thereof    and   participating   instrumentalities,   any
27        participating employee who, on the  date  of  application
28        for  such  benefit,  is entitled to a retirement annuity,
29        but wishes instead to use  the  amounts  to  his  or  her
30        credit   in  the  Fund  to  purchase  credit  in  another
31        retirement plan, may elect to take a  separation  benefit
32        in lieu of the retirement annuity.
33    (Source: P.A. 91-887, eff. 7-6-00.)
 
                            -27-           LRB9205287EGfgam07
 1        (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
 2        Sec.     7-172.      Contributions    by    participating
 3    municipalities and participating instrumentalities.
 4        (a)  Each    participating    municipality    and    each
 5    participating instrumentality shall make payment to the  fund
 6    as follows:
 7             1.  municipality    contributions   in   an   amount
 8        determined by applying the municipality contribution rate
 9        to  each  payment  of  earnings  paid  to  each  of   its
10        participating employees;
11             2.  an  amount  equal  to the employee contributions
12        provided by paragraphs (a)  and  (b)  of  Section  7-173,
13        whether or not the employee contributions are withheld as
14        permitted by that Section;
15             3.  all  accounts receivable, together with interest
16        charged thereon, as provided in Section 7-209;
17             4.  if  it  has  no  participating  employees   with
18        current  earnings, an amount payable which, over a period
19        of 20 years beginning with the year following an award of
20        benefit, will amortize, at the effective  rate  for  that
21        year,  any  negative  balance in its municipality reserve
22        resulting from the award.  This amount  when  established
23        will be payable as a separate contribution whether or not
24        it later has participating employees.
25        (b)  A  separate  municipality contribution rate shall be
26    determined for  each  calendar  year  for  all  participating
27    municipalities  together  with all instrumentalities thereof.
28    The municipality contribution rate shall  be  determined  for
29    participating instrumentalities as if they were participating
30    municipalities.   The municipality contribution rate shall be
31    the sum of the following percentages:
32             1.  The  percentage   of   earnings   of   all   the
33        participating     employees    of    all    participating
34        municipalities and participating instrumentalities which,
 
                            -28-           LRB9205287EGfgam07
 1        if paid over the entire period of their service, will  be
 2        sufficient  when combined with all employee contributions
 3        available for the payment of  benefits,  to  provide  all
 4        annuities  for  participating  employees,  and the $3,000
 5        death benefit payable under  Sections  7-158  and  7-164,
 6        such percentage to be known as the normal cost rate.
 7             2.  The  percentage of earnings of the participating
 8        employees  of   each   participating   municipality   and
 9        participating  instrumentalities  necessary to adjust for
10        the difference between the present value of all benefits,
11        excluding temporary and total  and  permanent  disability
12        and  death benefits, to be provided for its participating
13        employees and the sum  of  its  accumulated  municipality
14        contributions  and the accumulated employee contributions
15        and the present value of  expected  future  employee  and
16        municipality  contributions pursuant to subparagraph 1 of
17        this paragraph (b).  This adjustment shall be spread over
18        the remainder of  the  period  that  is  allowable  under
19        generally accepted accounting principles of 40 years from
20        the   first   of   the   year   following   the  date  of
21        determination.
22             3.  The percentage of earnings of the  participating
23        employees   of   all   municipalities  and  participating
24        instrumentalities necessary to provide the present  value
25        of  all  temporary  and  total  and  permanent disability
26        benefits granted during the most recent  year  for  which
27        information is available.
28             4.  The  percentage of earnings of the participating
29        employees  of  all   participating   municipalities   and
30        participating  instrumentalities necessary to provide the
31        present value  of  the  net  single  sum  death  benefits
32        expected  to  become payable from the reserve established
33        under Section 7-206 during the year for which  this  rate
34        is fixed.
 
                            -29-           LRB9205287EGfgam07
 1             5.  The percentage of earnings necessary to meet any
 2        deficiency   arising   in   the  Terminated  Municipality
 3        Reserve.
 4        (c)  A separate municipality contribution rate  shall  be
 5    computed for each participating municipality or participating
 6    instrumentality for its sheriff's law enforcement employees.
 7        A   separate  municipality  contribution  rate  shall  be
 8    computed for the sheriff's law enforcement employees of  each
 9    forest  preserve district that elects to have such employees.
10    For the period from January 1, 1986  to  December  31,  1986,
11    such  rate  shall  be  the forest preserve district's regular
12    rate plus 2%.
13        In the event that the Board determines that there  is  an
14    actuarial  deficiency in the account of any municipality with
15    respect to a person who has elected  to  participate  in  the
16    Fund under Section 3-109.1 of this Code, the Board may adjust
17    the  municipality's  contribution  rate so as to make up that
18    deficiency over such reasonable period of time as  the  Board
19    may determine.
20        (d)  The  Board  may  establish  a  separate municipality
21    contribution  rate  for  all  employees   who   are   program
22    participants   employed   under   the  federal  Comprehensive
23    Employment  Training  Act  by  all   of   the   participating
24    municipalities  and  instrumentalities.   The  Board may also
25    provide that, in lieu of a  separate  municipality  rate  for
26    these  employees, a portion of the municipality contributions
27    for such program participants shall be refunded or  an  extra
28    charge   assessed   so   that   the  amount  of  municipality
29    contributions retained or received by the fund for  all  CETA
30    program  participants  shall be an amount equal to that which
31    would be provided by the separate  municipality  contribution
32    rate  for  all  such  program participants.  Refunds shall be
33    made to prime sponsors of programs upon submission of a claim
34    therefor and extra charges shall be assessed to participating
 
                            -30-           LRB9205287EGfgam07
 1    municipalities and instrumentalities.   In  establishing  the
 2    municipality  contribution  rate as provided in paragraph (b)
 3    of  this  Section,  the  use  of  a   separate   municipality
 4    contribution rate for program participants or the refund of a
 5    portion  of  the  municipality contributions, as the case may
 6    be, may be considered.
 7        (e)  Computations of municipality contribution rates  for
 8    the  following  calendar  year  shall  be  made  prior to the
 9    beginning of each year, from the information available at the
10    time the computations are made, and on  the  assumption  that
11    the   employees   in   each   participating  municipality  or
12    participating instrumentality at such time will  continue  in
13    service  until  the  end  of  such  calendar  year  at  their
14    respective rates of earnings at such time.
15        (f)  Any  municipality  which  is  the recipient of State
16    allocations representing  that  municipality's  contributions
17    for retirement annuity purposes on behalf of its employees as
18    provided  in Section 12-21.16 of the Illinois Public Aid Code
19    shall pay the allocations so received to the Board  for  such
20    purpose.   Estimates  of  State  allocations  to  be received
21    during  any  taxable  year  shall  be   considered   in   the
22    determination  of  the  municipality's tax rate for that year
23    under Section 7-171.   If  a  special  tax  is  levied  under
24    Section  7-171, none of the proceeds may be used to reimburse
25    the municipality for the amount of State allocations received
26    and paid to the Board.  Any multiple-county  or  consolidated
27    health  department which receives contributions from a county
28    under Section 11.2 of "An Act in  relation  to  establishment
29    and   maintenance   of   county  and  multiple-county  health
30    departments",  approved  July  9,  1943,   as   amended,   or
31    distributions  under  Section  3  of the Department of Public
32    Health  Act,  shall   use   these   only   for   municipality
33    contributions by the health department.
34        (g)  Municipality  contributions for the several purposes
 
                            -31-           LRB9205287EGfgam07
 1    specified shall, for township treasurers and employees in the
 2    offices of the township treasurers who  meet  the  qualifying
 3    conditions  for  coverage  hereunder,  be allocated among the
 4    several  school  districts  and  parts  of  school  districts
 5    serviced by such treasurers and employees in  the  proportion
 6    which  the amount of school funds of each district or part of
 7    a district handled by the treasurer bears to the total amount
 8    of all school funds handled by the treasurer.
 9        From the funds subject to allocation among districts  and
10    parts  of districts pursuant to the School Code, the trustees
11    shall withhold the proportionate share of the  liability  for
12    municipality  contributions  imposed  upon  such districts by
13    this Section, in respect  to  such  township  treasurers  and
14    employees and remit the same to the Board.
15        The  municipality  contribution  rate  for an educational
16    service center shall initially be the same rate for each year
17    as the regional office of education or school district  which
18    serves  as  its  administrative  agent.   When actuarial data
19    become available, a separate rate  shall  be  established  as
20    provided in subparagraph (i) of this Section.
21        The  municipality  contribution rate for a public agency,
22    other than a vocational education cooperative,  formed  under
23    the  Intergovernmental Cooperation Act shall initially be the
24    average rate for the municipalities which are parties to  the
25    intergovernmental  agreement.   When  actuarial  data  become
26    available,  a  separate rate shall be established as provided
27    in subparagraph (i) of this Section.
28        (h)  Each participating  municipality  and  participating
29    instrumentality  shall  make the contributions in the amounts
30    provided in this Section in the manner prescribed  from  time
31    to  time  by  the  Board  and all such contributions shall be
32    obligations of the  respective  participating  municipalities
33    and   participating  instrumentalities  to  this  fund.   The
34    failure  to  deduct  any  employee  contributions  shall  not
 
                            -32-           LRB9205287EGfgam07
 1    relieve  the  participating  municipality  or   participating
 2    instrumentality  of  its obligation to this fund.  Delinquent
 3    payments of contributions due under this  Section  may,  with
 4    interest,   be   recovered   by   civil  action  against  the
 5    participating      municipalities      or       participating
 6    instrumentalities.   Municipality  contributions,  other than
 7    the amount necessary for employee  contributions  and  Social
 8    Security  contributions,  for periods of service by employees
 9    from whose earnings no  deductions  were  made  for  employee
10    contributions to the fund, may be charged to the municipality
11    reserve     for    the    municipality    or    participating
12    instrumentality.
13        (i)  Contributions  by  participating   instrumentalities
14    shall  be  determined  as  provided  herein  except  that the
15    percentage derived under subparagraph 2 of paragraph  (b)  of
16    this  Section, and the amount payable under subparagraph 5 of
17    paragraph  (a)  of  this  Section,  shall  be  based  on   an
18    amortization period of 10 years.
19    (Source: P.A. 90-448, eff. 8-16-97.)

20        (40 ILCS 5/15-148) (from Ch. 108 1/2, par. 15-148)
21        Sec.  15-148.   Survivors  insurance  benefits  - General
22    provisions.  The survivors annuity is  payable  monthly.  Any
23    annuity due but unpaid upon the death of the annuitant, shall
24    be paid to the annuitant's estate.
25        A  person who becomes entitled to more than one survivors
26    insurance benefit because of the death of 2 or  more  persons
27    shall  receive  only the largest of the benefits; except that
28    this limitation does  not  apply  to  a  survivors  insurance
29    beneficiary who is entitled to a survivor's annuity by reason
30    of a mental or physical disability.
31        A   survivors   insurance  beneficiary  or  the  personal
32    representative  of  the  estate  of  a   deceased   survivors
33    insurance  beneficiary  or  the  personal representative of a
 
                            -33-           LRB9205287EGfgam07
 1    survivors  insurance  beneficiary  who  is  under   a   legal
 2    disability  may  waive  the  right  to  receive  survivorship
 3    benefits,  provided  written notice of the waiver is given by
 4    the beneficiary or  representative  to  the  board  within  6
 5    months  after  the  death of the participant or annuitant and
 6    before any payment is made pursuant to an  application  filed
 7    by such person.
 8    (Source: P.A. 83-1440.)

 9        (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
10        Sec. 15-154.  Refunds.
11        (a)  A   participant  whose  status  as  an  employee  is
12    terminated, regardless of cause, or who has been on  lay  off
13    status  for  more  than  120 days, and who is not on leave of
14    absence, is  entitled  to  a  refund  of  contributions  upon
15    application;  except  that  not  more  than  one  such refund
16    application may be made during any academic year.
17        Except as set forth in subsections (a-1) and  (a-2),  the
18    refund shall be the sum of the accumulated normal, additional
19    and  survivors  insurance  contributions,  less the amount of
20    interest credited on these contributions each year in  excess
21    of 4 1/2% of the amount on which interest was calculated.
22        (a-1)  A  person  who  elects,  in  accordance  with  the
23    requirements  of  Section  15-134.5,  to  participate  in the
24    portable benefit package  and  who  becomes  a  participating
25    employee under that retirement program upon the conclusion of
26    the  one-year  waiting  period  applicable  to  the  portable
27    benefit  package  election  shall  have  his  or  her  refund
28    calculated  in  accordance  with the provisions of subsection
29    (a-2).
30        (a-2)  The refund payable to a participant  described  in
31    subsection  (a-1)  shall  be  the  sum  of  the participant's
32    accumulated normal and additional contributions,  as  defined
33    in Sections 15-116 and 15-117.  If the participant terminates
 
                            -34-           LRB9205287EGfgam07
 1    with  5 or more years of service for employment as defined in
 2    Section 15-113.1, he or she  shall  also  be  entitled  to  a
 3    distribution  of employer contributions in an amount equal to
 4    the  sum   of   the   accumulated   normal   and   additional
 5    contributions, as defined in Sections 15-116 and 15-117.
 6        (b)  Upon   acceptance   of  a  refund,  the  participant
 7    forfeits all accrued rights and credits in the System, and if
 8    subsequently reemployed, the participant shall be  considered
 9    a  new  employee subject to all the qualifying conditions for
10    participation and eligibility for benefits applicable to  new
11    employees.   If  such  person  again  becomes a participating
12    employee and continues as such for 2 years, or is employed by
13    an employer and participates for at  least  2  years  in  the
14    Federal  Civil  Service  Retirement  System, all such rights,
15    credits, and  previous  status  as  a  participant  shall  be
16    restored upon repayment of the amount of the refund, together
17    with  compound  interest thereon from the date the refund was
18    received to the date of repayment at the rate of 6% per annum
19    through August 31, 1982, and at  the  effective  rates  after
20    that  date.    Notwithstanding  Section 1-103.1 and the other
21    provisions of this Section, a person who was a participant in
22    the System from February 14, 1966 until March  13,  1981  may
23    restore  credits  previously  forfeited  by  acceptance  of a
24    refund, without returning to service, by applying in  writing
25    and  repaying to the System by July 1, 2002 the amount of the
26    refund plus interest at the effective  rate  calculated  from
27    the date of the refund to the date of repayment.
28        (c)  If  a  participant  covered  under  the  traditional
29    benefit  package  has made survivors insurance contributions,
30    but has no survivors insurance beneficiary  upon  retirement,
31    he  or  she  shall  be  entitled  to  elect  a  refund of the
32    accumulated survivors insurance contributions, or to elect an
33    additional annuity  the  value  of  which  is  equal  to  the
34    accumulated survivors insurance contributions.  This election
 
                            -35-           LRB9205287EGfgam07
 1    must  be  made  prior  to  the  date  the person's retirement
 2    annuity is approved by the Board of Trustees.
 3        (d)  A participant, upon application, is  entitled  to  a
 4    refund  of  his  or  her accumulated additional contributions
 5    attributable to the additional contributions described in the
 6    last sentence of subsection (c) of Section 15-157.  Upon  the
 7    acceptance   of  such  a  refund  of  accumulated  additional
 8    contributions,  the  participant  forfeits  all  rights   and
 9    credits which may have accrued because of such contributions.
10        (e)  A  participant  who  terminates  his or her employee
11    status and elects  to  waive  service  credit  under  Section
12    15-154.2,  is entitled to a refund of the accumulated normal,
13    additional and survivors  insurance  contributions,  if  any,
14    which  were  credited the participant for this service, or to
15    an additional annuity the value of  which  is  equal  to  the
16    accumulated   normal,   additional  and  survivors  insurance
17    contributions, if any; except that not  more  than  one  such
18    refund application may be made during any academic year. Upon
19    acceptance  of  this  refund,  the  participant  forfeits all
20    rights and credits accrued because of this service.
21        (f)  If  a  police  officer  or  firefighter  receives  a
22    retirement annuity under Rule 1 or 3 of Section 15-136, he or
23    she shall be entitled  at  retirement  to  a  refund  of  the
24    difference    between   his   or   her   accumulated   normal
25    contributions and the normal contributions which  would  have
26    accumulated  had such person filed a waiver of the retirement
27    formula provided by Rule 4 of Section 15-136.
28        (g)  If, at the time of retirement, a  participant  would
29    be entitled to a retirement annuity under Rule 1, 2, 3, 4, or
30    5 of Section 15-136, or under Section 15-136.4,  that exceeds
31    the  maximum  specified  in  clause  (1) of subsection (c) of
32    Section 15-136, he or she shall be entitled to  a  refund  of
33    the employee contributions, if any, paid under Section 15-157
34    after  the  date upon which continuance of such contributions
 
                            -36-           LRB9205287EGfgam07
 1    would have otherwise caused the retirement annuity to  exceed
 2    this maximum, plus compound interest at the effective rates.
 3    (Source: P.A.  90-448,  eff.  8-16-97;  90-576, eff. 3-31-98;
 4    90-766, eff. 8-14-98;  91-887  (Sections  10  and  25),  eff.
 5    7-6-00; revised 9-1-00.)

 6        Section  90.  The State Mandates Act is amended by adding
 7    Section 8.25 as follows:

 8        (30 ILCS 805/8.25 new)
 9        Sec. 8.25. Exempt mandate.   Notwithstanding  Sections  6
10    and  8 of this Act, no reimbursement by the State is required
11    for  the  implementation  of  any  mandate  created  by  this
12    amendatory Act of the 92nd General Assembly.

13        Section 99. Effective date.  This Act takes  effect  upon
14    becoming law.".

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