HB5168enr 92nd General Assembly


92_HB5168enr

 
HB5168 Enrolled                                LRB9212225EGfg

 1        AN ACT in relation to public employee benefits.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 10.  The Illinois  Pension  Code  is  amended  by
 5    changing  Sections  5-144,  5-167.5,  6-164.2,  8-110, 8-113,
 6    8-120, 8-137, 8-138, 8-150.1, 8-158, 8-161,  8-164.1,  8-168,
 7    8-171,  8-227,  8-230.7,  8-243.2,  9-121.15, 9-134, 9-134.3,
 8    9-146.1, 9-148,  9-163,  9-179.3,  9-219,  11-125.8,  11-134,
 9    11-134.1, 11-145.1, 11-153, 11-156, 11-160.1, 11-164, 11-167,
10    13-301,  13-302,  13-304,  13-502,  13-503, 14-105.7, 15-112,
11    17-106, 17-119.1,  17-121,  17-134,  and  17-149  and  adding
12    Sections   5-129.1,  5-233.1,  8-230.9,  8-230.10,  9-121.16,
13    9-134.4, 9-148.1, and 13-304.1 as follows:

14        (40 ILCS 5/5-129.1 new)
15        Sec. 5-129.1. Withdrawal at mandatory  retirement  age  -
16    amount of annuity.
17        (a)  In  lieu  of  any  annuity  provided  in  the  other
18    provisions  of  this  Article, a policeman who is required to
19    withdraw  from  service  due  to  attainment   of   mandatory
20    retirement  age  and has less than 20 years of service credit
21    may elect to receive an  annuity  equal  to  30%  of  average
22    salary  for  the first 10 years of service plus 2% of average
23    salary for each completed year of service or fraction thereof
24    in excess of 10, but not  to  exceed  a  maximum  of  48%  of
25    average salary.
26        (b)  For  the  purpose  of this Section, "average salary"
27    means the average of  the  highest  4  consecutive  years  of
28    salary  within  the last 10 years of service, or such shorter
29    period as may be  used  to  calculate  a  minimum  retirement
30    annuity under Section 5-132.
31        (c)  For   the  purpose  of  qualifying  for  the  annual
 
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 1    increases provided in  Section  5-167.1,  a  policeman  whose
 2    retirement  annuity is calculated under this Section shall be
 3    deemed to qualify for a minimum annuity.

 4        (40 ILCS 5/5-144) (from Ch. 108 1/2, par. 5-144)
 5        Sec. 5-144. Death from injury in the performance of  acts
 6    of duty; compensation annuity and supplemental annuity.
 7        (a)  Beginning  January  1,  1986,  and without regard to
 8    whether or not the annuity  in  question  began  before  that
 9    date,  if  the  annuity  for  the  widow of a policeman whose
10    death, on or after  January  1,  1940,  results  from  injury
11    incurred in the performance of an act or acts of duty, is not
12    equal  to  the sum hereinafter stated, "compensation annuity"
13    equal to the difference between the  annuity  and  an  amount
14    equal  to  75%  of  the  policeman's  salary  attached to the
15    position he held by certification and appointment as a result
16    of  competitive  civil   service   examination   that   would
17    ordinarily  have been paid to him as though he were in active
18    discharge of his duties shall be payable to the  widow  until
19    the policeman, had he lived, would have attained age 63.  The
20    total  amount  of  the  widow's annuity and children's awards
21    payable to the family of such policeman shall not exceed  the
22    amounts stated in Section 5-152.
23        The  provisions of this Section, as amended by Public Act
24    84-1104, including the reference to the date upon  which  the
25    deceased policeman would have attained age 63, shall apply to
26    all  widows  of  policemen  whose  death  occurs  on or after
27    January 1, 1940 due to injury incurred in the performance  of
28    an  act  of  duty,  regardless of whether such death occurred
29    prior to September 17, 1969.  For those widows  of  policemen
30    that  died  prior  to September 17, 1969, who became eligible
31    for compensation annuity by the action of Public Act 84-1104,
32    such compensation annuity shall begin and be calculated  from
33    January  1,  1986.   The provisions of this amendatory Act of
 
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 1    1987 are intended to restate and clarify the intent of Public
 2    Act 84-1104, and do not make any substantive change.
 3        (b)  Upon  termination  of  the   compensation   annuity,
 4    "supplemental  annuity"  shall  become  payable to the widow,
 5    equal to the difference between the annuity for the widow and
 6    an amount equal to 75% 50% of the  annual  salary  (including
 7    all salary increases and longevity raises) that the policeman
 8    would  have  been  receiving  when  he attained age 63 if the
 9    policeman had continued in service at the same rank  (whether
10    career  service  or  exempt)  that he last held in the police
11    department.  The increase in supplemental  annuity  resulting
12    from  this  amendatory  Act of the 92nd General Assembly 1995
13    applies without regard to whether the deceased policeman  was
14    in  service on or after the effective date of this amendatory
15    Act and is payable from July 1, 2002 January 1, 1996  or  the
16    date upon which the supplemental annuity begins, whichever is
17    later.
18        (c)  Neither  compensation nor supplemental annuity shall
19    be paid unless the death of the policeman was a direct result
20    of the injury, or the injury was  of  such  character  as  to
21    prevent   him   from   subsequently  resuming  service  as  a
22    policeman; nor shall compensation or supplemental annuity  be
23    paid  unless the widow was the wife of the policeman when the
24    injury occurred.
25    (Source: P.A. 89-12, eff. 4-20-95.)

26        (40 ILCS 5/5-167.5) (from Ch. 108 1/2, par. 5-167.5)
27        Sec. 5-167.5.  Group health benefit.
28        (a)  For the purposes of this  Section:  (1)  "annuitant"
29    means  a person receiving an age and service annuity, a prior
30    service annuity, a widow's annuity, a widow's  prior  service
31    annuity,  or  a minimum annuity, under Article 5, 6, 8 or 11,
32    by reason of previous  employment  by  the  City  of  Chicago
33    (hereinafter,  in  this  Section,  "the city"); (2) "Medicare
 
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 1    Plan annuitant" means an annuitant described in item (1)  who
 2    is eligible for Medicare benefits; and (3) "non-Medicare Plan
 3    annuitant"  means  an  annuitant described in item (1) who is
 4    not eligible for Medicare benefits.
 5        (b)  The  city  shall  offer  group  health  benefits  to
 6    annuitants and their eligible  dependents  through  June  30,
 7    2003  2002.   The basic city health care plan available as of
 8    June 30, 1988 (hereinafter called the basic city plan)  shall
 9    cease  to  be a plan offered by the city, except as specified
10    in subparagraphs (4) and (5) below, and shall  be  closed  to
11    new  enrollment  or transfer of coverage for any non-Medicare
12    Plan annuitant as of June 27,  the  effective  date  of  this
13    amendatory  Act  of  1997.  The city shall offer non-Medicare
14    Plan annuitants and their eligible dependents the  option  of
15    enrolling  in  its  Annuitant Preferred Provider Plan and may
16    offer additional plans  for  any  annuitant.   The  city  may
17    amend,  modify,  or  terminate any of its additional plans at
18    its sole discretion.   If  the  city  offers  more  than  one
19    annuitant  plan,  the  city shall allow annuitants to convert
20    coverage from one city annuitant plan to another, except  the
21    basic  city  plan, during times designated by the city, which
22    periods of time shall  occur  at  least  annually.   For  the
23    period  dating  from  June  27,  the  effective  date of this
24    amendatory Act of 1997 through June 30,  2003  2002,  monthly
25    premium rates may be increased for annuitants during the time
26    of  their  participation  in  non-Medicare  plans,  except as
27    provided in subparagraphs (1) through (4) of this subsection.
28             (1)  For non-Medicare Plan  annuitants  who  retired
29        prior  to  January  1,  1988,  the  annuitant's  share of
30        monthly premium for non-Medicare Plan coverage only shall
31        not exceed the highest premium rate chargeable under  any
32        city  non-Medicare Plan annuitant coverage as of December
33        1, 1996.
34             (2)  For non-Medicare Plan annuitants who retire  on
 
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 1        or  after  January  1,  1988,  the  annuitant's  share of
 2        monthly premium for non-Medicare Plan coverage only shall
 3        be the rate in effect on December 1, 1996,  with  monthly
 4        premium  increases to take effect no sooner than April 1,
 5        1998 at the lower of  (i)  the  premium  rate  determined
 6        pursuant to subsection (g) or (ii) 10% of the immediately
 7        previous month's rate for similar coverage.
 8             (3)  In   no   event  shall  any  non-Medicare  Plan
 9        annuitant's share of  monthly  premium  for  non-Medicare
10        Plan  coverage  exceed  10%  of  the  annuitant's monthly
11        annuity.
12             (4)  Non-Medicare Plan annuitants who  are  enrolled
13        in  the  basic city plan as of July 1, 1998 may remain in
14        the basic city plan, if they so choose, on the  condition
15        that they are not entitled to the caps on rates set forth
16        in  subparagraphs (1) through (3), and their premium rate
17        shall  be  the  rate  determined   in   accordance   with
18        subsections (c) and (g).
19             (5)  Medicare  Plan  annuitants  who  are  currently
20        enrolled  in  the  basic  city plan for Medicare eligible
21        annuitants may remain in that plan, if  they  so  choose,
22        through  June  30,  2003  2002.   Annuitants shall not be
23        allowed to enroll in or transfer into the basic city plan
24        for Medicare eligible annuitants  on  or  after  July  1,
25        1999.   The  city  shall  continue  to offer annuitants a
26        supplemental  Medicare   Plan   for   Medicare   eligible
27        annuitants  through  June 30, 2003 2002, and the city may
28        offer additional plans to Medicare eligible annuitants in
29        its sole discretion.  All Medicare Plan annuitant monthly
30        rates shall be determined in accordance with  subsections
31        (c) and (g).
32        (c)  The  city  shall  pay 50% of the aggregated costs of
33    the  claims  or  premiums,  whichever   is   applicable,   as
34    determined  in  accordance with subsection (g), of annuitants
 
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 1    and their dependents under all health care plans  offered  by
 2    the  city.  The city may reduce its obligation by application
 3    of  price  reductions  obtained  as  a  result  of  financial
 4    arrangements with providers or plan administrators.
 5        (d)  From January 1, 1993 until June 30, 2003  2002,  the
 6    board  shall pay to the city on behalf of each of the board's
 7    annuitants who chooses to participate in any  of  the  city's
 8    plans the following amounts: up to a maximum of $75 per month
 9    for  each  such  annuitant  who  is  not qualified to receive
10    medicare benefits, and up to a maximum of $45 per  month  for
11    each  such  annuitant  who  is  qualified to receive medicare
12    benefits.
13        The payments described in this subsection shall  be  paid
14    from  the  tax  levy  authorized  under  Section  5-168; such
15    amounts shall be credited to the reserve for  group  hospital
16    care  and  group  medical and surgical plan benefits, and all
17    payments to the city required under this subsection shall  be
18    charged against it.
19        (e)  The city's obligations under subsections (b) and (c)
20    shall  terminate on June 30, 2003 2002, except with regard to
21    covered expenses incurred but not paid as of that date.  This
22    subsection shall not affect other  obligations  that  may  be
23    imposed by law.
24        (f)  The  group  coverage plans described in this Section
25    are  not  and  shall  not  be  construed  to  be  pension  or
26    retirement benefits for purposes of Section 5 of Article XIII
27    of the Illinois Constitution of 1970.
28        (g)  For each annuitant plan offered  by  the  city,  the
29    aggregate  cost  of claims, as reflected in the claim records
30    of the plan administrator, shall be estimated  by  the  city,
31    based upon a written determination by a qualified independent
32    actuary  to  be appointed and paid by the city and the board.
33    If the estimated annual cost for each annuitant plan  offered
34    by  the  city  is  more  than  the  estimated  amount  to  be
 
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 1    contributed by the city for that plan pursuant to subsections
 2    (b) and (c) during that year plus the estimated amounts to be
 3    paid  pursuant  to  subsection  (d)  and by the other pension
 4    boards on  behalf  of  other  participating  annuitants,  the
 5    difference  shall  be paid by all annuitants participating in
 6    the plan, except as provided in subsection  (b).   The  city,
 7    based  upon  the  determination  of  the independent actuary,
 8    shall set the monthly amounts to be paid by the participating
 9    annuitants.   The board may deduct the amounts to be paid  by
10    its  annuitants  from  the  participating annuitants' monthly
11    annuities.
12        If it is determined from the city's annual audit, or from
13    audited experience data, that the total amount  paid  by  all
14    participating annuitants was more or less than the difference
15    between  (1)  the  cost  of  providing  the group health care
16    plans, and (2) the sum of the amount to be paid by  the  city
17    as  determined  under  subsection (c) and the amounts paid by
18    all the pension boards, then the independent actuary and  the
19    city  shall  account  for the excess or shortfall in the next
20    year's  payments  by  annuitants,  except  as   provided   in
21    subsection (b).
22        (h)  An  annuitant  may  elect to terminate coverage in a
23    plan at the end of any month, which election shall  terminate
24    the  annuitant's  obligation  to contribute toward payment of
25    the excess described in subsection (g).
26        (i)  The city shall advise  the  board  of  all  proposed
27    premium  increases  for health care at least 75 days prior to
28    the effective date of the change, and any increase  shall  be
29    prospective only.
30    (Source: P.A. 90-32, eff. 6-27-97.)

31        (40 ILCS 5/5-233.1 new)
32        Sec.  5-233.1.  Transfer of creditable service to Article
33    8 or 11 fund.  A person who (i) is an active participant in a
 
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 1    fund established under Article 8 or 11 of this Code and  (ii)
 2    has  at  least  10  and  no  more than 22 years of creditable
 3    service in this Fund may, within the 90  days  following  the
 4    effective  date of this Section, apply for transfer of his or
 5    her credits and creditable service accumulated in  this  Fund
 6    to  the  Article  8 or 11 fund.  At the time of the transfer,
 7    this Fund shall pay to the Article 8 or  11  fund  an  amount
 8    consisting of:
 9             (1)  the  amounts  credited to the applicant through
10        employee contributions for the service to be transferred,
11        including interest; and
12             (2)  the   corresponding    municipality    credits,
13        including  interest, on the books of the Fund on the date
14        of transfer.
15    Participation in  this  Fund  with  respect  to  the  credits
16    transferred shall terminate on the date of transfer.

17        (40 ILCS 5/6-164.2) (from Ch. 108 1/2, par. 6-164.2)
18        Sec. 6-164.2.  Group health benefit.
19        (a)  For  the  purposes  of this Section: (1) "annuitant"
20    means a person receiving an age and service annuity, a  prior
21    service  annuity,  a widow's annuity, a widow's prior service
22    annuity, or a minimum annuity, under Article 5, 6, 8  or  11,
23    by  reason  of  previous  employment  by  the City of Chicago
24    (hereinafter, in this Section,  "the  city");  (2)  "Medicare
25    Plan  annuitant" means an annuitant described in item (1) who
26    is eligible for Medicare benefits; and (3) "non-Medicare Plan
27    annuitant" means an annuitant described in item  (1)  who  is
28    not eligible for Medicare benefits.
29        (b)  The  city  shall  offer  group  health  benefits  to
30    annuitants  and  their  eligible  dependents through June 30,
31    2003 2002.  The basic city health care plan available  as  of
32    June  30, 1988 (hereinafter called the basic city plan) shall
33    cease to be a plan offered by the city, except  as  specified
 
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 1    in  subparagraphs  (4)  and (5) below, and shall be closed to
 2    new enrollment or transfer of coverage for  any  non-Medicare
 3    Plan  annuitant  as  of  June  27, the effective date of this
 4    amendatory Act of 1997.  The city  shall  offer  non-Medicare
 5    Plan  annuitants  and their eligible dependents the option of
 6    enrolling in its Annuitant Preferred Provider  Plan  and  may
 7    offer  additional  plans  for  any  annuitant.   The city may
 8    amend, modify, or terminate any of its  additional  plans  at
 9    its  sole  discretion.   If  the  city  offers  more than one
10    annuitant plan, the city shall allow  annuitants  to  convert
11    coverage  from one city annuitant plan to another, except the
12    basic city plan, during times designated by the  city,  which
13    periods  of  time  shall  occur  at  least annually.  For the
14    period dating from  June  27,  the  effective  date  of  this
15    amendatory  Act  of  1997 through June 30, 2003 2002, monthly
16    premium rates may be increased for annuitants during the time
17    of their  participation  in  non-Medicare  plans,  except  as
18    provided in subparagraphs (1) through (4) of this subsection.
19             (1)  For  non-Medicare  Plan  annuitants who retired
20        prior to  January  1,  1988,  the  annuitant's  share  of
21        monthly premium for non-Medicare Plan coverage only shall
22        not  exceed the highest premium rate chargeable under any
23        city non-Medicare Plan annuitant coverage as of  December
24        1, 1996.
25             (2)  For  non-Medicare Plan annuitants who retire on
26        or after  January  1,  1988,  the  annuitant's  share  of
27        monthly premium for non-Medicare Plan coverage only shall
28        be  the  rate in effect on December 1, 1996, with monthly
29        premium increases to take effect no sooner than April  1,
30        1998  at  the  lower  of  (i) the premium rate determined
31        pursuant to subsection (g) or (ii) 10% of the immediately
32        previous month's rate for similar coverage.
33             (3)  In  no  event  shall  any   non-Medicare   Plan
34        annuitant's  share  of  monthly  premium for non-Medicare
 
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 1        Plan coverage  exceed  10%  of  the  annuitant's  monthly
 2        annuity.
 3             (4)  Non-Medicare  Plan  annuitants who are enrolled
 4        in the basic city plan as of July 1, 1998 may  remain  in
 5        the  basic city plan, if they so choose, on the condition
 6        that they are not entitled to the caps on rates set forth
 7        in subparagraphs (1) through (3), and their premium  rate
 8        shall   be   the   rate  determined  in  accordance  with
 9        subsections (c) and (g).
10             (5)  Medicare  Plan  annuitants  who  are  currently
11        enrolled in the basic city  plan  for  Medicare  eligible
12        annuitants  may  remain  in that plan, if they so choose,
13        through June 30, 2003  2002.   Annuitants  shall  not  be
14        allowed to enroll in or transfer into the basic city plan
15        for  Medicare  eligible  annuitants  on  or after July 1,
16        1999.  The city shall  continue  to  offer  annuitants  a
17        supplemental   Medicare   Plan   for   Medicare  eligible
18        annuitants through June 30, 2003 2002, and the  city  may
19        offer additional plans to Medicare eligible annuitants in
20        its sole discretion.  All Medicare Plan annuitant monthly
21        rates  shall be determined in accordance with subsections
22        (c) and (g).
23        (c)  The city shall pay 50% of the  aggregated  costs  of
24    the   claims   or   premiums,  whichever  is  applicable,  as
25    determined in accordance with subsection (g),  of  annuitants
26    and  their  dependents under all health care plans offered by
27    the city.  The city may reduce its obligation by  application
28    of  price  reductions  obtained  as  a  result  of  financial
29    arrangements with providers or plan administrators.
30        (d)  From  January  1, 1993 until June 30, 2003 2002, the
31    board shall pay to the city on behalf of each of the  board's
32    annuitants  who  chooses  to participate in any of the city's
33    plans the following amounts: up to a maximum of $75 per month
34    for each such annuitant  who  is  not  qualified  to  receive
 
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 1    medicare  benefits,  and up to a maximum of $45 per month for
 2    each such annuitant who  is  qualified  to  receive  medicare
 3    benefits.
 4        The  payments  described in this subsection shall be paid
 5    from the  tax  levy  authorized  under  Section  6-165;  such
 6    amounts  shall  be credited to the reserve for group hospital
 7    care and group medical and surgical plan  benefits,  and  all
 8    payments  to the city required under this subsection shall be
 9    charged against it.
10        (e)  The city's obligations under subsections (b) and (c)
11    shall terminate on June 30, 2003 2002, except with regard  to
12    covered expenses incurred but not paid as of that date.  This
13    subsection  shall  not  affect  other obligations that may be
14    imposed by law.
15        (f)  The group coverage plans described in  this  Section
16    are  not  and  shall  not  be  construed  to  be  pension  or
17    retirement benefits for purposes of Section 5 of Article XIII
18    of the Illinois Constitution of 1970.
19        (g)  For  each  annuitant  plan  offered by the city, the
20    aggregate cost of claims, as reflected in the  claim  records
21    of  the  plan  administrator, shall be estimated by the city,
22    based upon a written determination by a qualified independent
23    actuary to be appointed and paid by the city and  the  board.
24    If  the estimated annual cost for each annuitant plan offered
25    by  the  city  is  more  than  the  estimated  amount  to  be
26    contributed by the city for that plan pursuant to subsections
27    (b) and (c) during that year plus the estimated amounts to be
28    paid pursuant to subsection (d)  and  by  the  other  pension
29    boards  on  behalf  of  other  participating  annuitants, the
30    difference shall be paid by all annuitants  participating  in
31    the  plan,  except  as provided in subsection (b).  The city,
32    based upon the  determination  of  the  independent  actuary,
33    shall set the monthly amounts to be paid by the participating
34    annuitants.    The board may deduct the amounts to be paid by
 
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 1    its annuitants from  the  participating  annuitants'  monthly
 2    annuities.
 3        If it is determined from the city's annual audit, or from
 4    audited  experience  data,  that the total amount paid by all
 5    participating annuitants was more or less than the difference
 6    between (1) the cost  of  providing  the  group  health  care
 7    plans,  and  (2) the sum of the amount to be paid by the city
 8    as determined under subsection (c) and the  amounts  paid  by
 9    all  the pension boards, then the independent actuary and the
10    city shall account for the excess or shortfall  in  the  next
11    year's   payments   by  annuitants,  except  as  provided  in
12    subsection (b).
13        (h)  An annuitant may elect to terminate  coverage  in  a
14    plan  at the end of any month, which election shall terminate
15    the annuitant's obligation to contribute  toward  payment  of
16    the excess described in subsection (g).
17        (i)  The  city  shall  advise  the  board of all proposed
18    premium increases for health care at least 75 days  prior  to
19    the  effective  date of the change, and any increase shall be
20    prospective only.
21    (Source: P.A. 90-32, eff. 6-27-97.)

22        (40 ILCS 5/8-110) (from Ch. 108 1/2, par. 8-110)
23        Sec. 8-110. Employer.  "Employer":
24        (1)  a city of more than 500,000 inhabitants;
25        (2)  or the Board of Education of  the  such  city,  with
26    respect to any of its employees who participate in this Fund;
27        (3)  the  Chicago  Housing Authority, with respect to any
28    of its employees who participate in this Fund subject to  the
29    provisions of Section 8-230.9;
30        (4)  the  Public  Building  Commission  of the city, with
31    respect to any of its employees who participate in this Fund;
32    and
33        (5)  to which this Article  applies,  or  the  Retirement
 
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 1    Board.
 2    (Source: Laws 1968, p. 181.)

 3        (40 ILCS 5/8-113) (from Ch. 108 1/2, par. 8-113)
 4        Sec.  8-113.   Municipal employee, employee, contributor,
 5    or   participant.      "Municipal   employee",    "employee",
 6    "contributor", or "participant":
 7        (a)  Any   employee   of  an  employer  employed  in  the
 8    classified civil service  thereof  other  than  by  temporary
 9    appointment  or  in  a  position  excluded or exempt from the
10    classified service by the Civil Service Act, or in  the  case
11    of a city operating under a personnel ordinance, any employee
12    of  an  employer employed in the classified or career service
13    under the provisions of a personnel ordinance, other than  in
14    a  provisional  or  exempt  position  as  specified  in  such
15    ordinance or in rules and regulations formulated thereunder.
16        (b)  Any  employee  in  the service of an employer before
17    the Civil Service Act came in effect for the employer.
18        (c)  Any person employed by the board.
19        (d)  Any person employed after  December  31,  1949,  but
20    prior  to  January 1, 1984, in the service of the employer by
21    temporary appointment  or  in  a  position  exempt  from  the
22    classified  service as set forth in the Civil Service Act, or
23    in a provisional or  exempt  position  as  specified  in  the
24    personnel ordinance, who meets the following qualifications:
25        (1)  has   rendered  service  during  not  less  than  12
26    calendar months to an employer as an  employee,  officer,  or
27    official,  4  months of which must have been consecutive full
28    normal working months of service rendered  immediately  prior
29    to filing application to be included; and
30        (2)  files  written  application with the board, while in
31    the service, to be included hereunder.
32        (e)  After December  31,  1949,  any  alderman  or  other
33    officer  or  official  of  the  employer, who files, while in
 
HB5168 Enrolled            -14-                LRB9212225EGfg
 1    office, written application with the  board  to  be  included
 2    hereunder.
 3        (f)  Beginning January 1, 1984, any person employed by an
 4    employer  other  than  the  Chicago  Housing Authority or the
 5    Public Building Commission of the city, whether or  not  such
 6    person  is  serving by temporary appointment or in a position
 7    exempt from the classified service as set forth in the  Civil
 8    Service  Act,  or  in  a  provisional  or  exempt position as
 9    specified in the  personnel  ordinance,  provided  that  such
10    person  is  neither  (1)  an  alderman  or  other  officer or
11    official of the employer, nor (2) participating, on the basis
12    of such employment, in any other pension fund  or  retirement
13    system established under this Act.
14        (g)  After  December 31, 1959, any person employed in the
15    law department of the city, or municipal court  or  Board  of
16    Election Commissioners of the city, who was a contributor and
17    participant, on December 31, 1959, in the annuity and benefit
18    fund  in operation in the city on said date, by virtue of the
19    Court and Law Department Employees' Annuity Act or the  Board
20    of Election Commissioners Employees' Annuity Act.
21        After   December   31,  1959,  the  foregoing  definition
22    includes any other person employed or to be employed  in  the
23    law  department,  or municipal court (other than as a judge),
24    or Board of Election Commissioners (if his salary is provided
25    by appropriation of the city council  of  the  city  and  his
26    salary  paid by the city) -- subject, however, in the case of
27    such persons  not  participants  on  December  31,  1959,  to
28    compliance  with  the  same  qualifications  and restrictions
29    otherwise set  forth  in  this  Section  and  made  generally
30    applicable  to  employees  or officers of the city concerning
31    eligibility for participation or membership.
32        (h)  After December 31, 1965, any person employed in  the
33    public library of the city -- and any other person -- who was
34    a  contributor  and participant, on December 31, 1965, in the
 
HB5168 Enrolled            -15-                LRB9212225EGfg
 1    pension fund in operation in the city on said date, by virtue
 2    of the Public Library Employees' Pension Act.
 3        (i)  After December 31, 1968, any person employed in  the
 4    house  of  correction  of the city, who was a contributor and
 5    participant, on December 31, 1968, in  the  pension  fund  in
 6    operation in the city on said date, by virtue of the House of
 7    Correction Employees' Pension Act.
 8        (j)  Any  person  employed  full-time  on  or  after  the
 9    effective  date  of  this  amendatory Act of the 92nd General
10    Assembly by the Chicago Housing Authority who has elected  to
11    participate  in  this  Fund  as provided in subsection (a) of
12    Section 8-230.9.
13        (k)  Any person employed full-time by the Public Building
14    Commission of the city who has elected to participate in this
15    Fund as provided in subsection (d) of Section 8-230.7.
16    (Source: P.A. 83-802.)

17        (40 ILCS 5/8-120) (from Ch. 108 1/2, par. 8-120)
18        Sec. 8-120.  Child or children.  "Child"  or  "children":
19    The  natural  child  or  children,  or  any child or children
20    legally adopted by an employee at least one year prior to the
21    date any benefit for the child or children  accrues,  and  so
22    adopted prior to the date the employee attained age 55.
23    (Source: P.A. 84-1028.)

24        (40 ILCS 5/8-137) (from Ch. 108 1/2, par. 8-137)
25        Sec. 8-137.  Automatic increase in annuity.
26        (a)  An  employee  who  retired  or  retires from service
27    after December 31, 1959 and before January  1,  1987,  having
28    attained  age 60 or more, shall, in January of the year after
29    the year in which the first anniversary of retirement occurs,
30    have the amount of his then fixed and payable monthly annuity
31    increased by 1 1/2%, and such first fixed annuity as  granted
32    at  retirement  increased  by  a further 1 1/2% in January of
 
HB5168 Enrolled            -16-                LRB9212225EGfg
 1    each year thereafter.  Beginning with  January  of  the  year
 2    1972,  such  increases  shall be at the rate of 2% in lieu of
 3    the aforesaid specified 1 1/2%, and beginning with January of
 4    the year 1984 such increases shall be  at  the  rate  of  3%.
 5    Beginning  in January of 1999, such increases shall be at the
 6    rate  of  3%  of  the  currently  payable  monthly   annuity,
 7    including   any   increases  previously  granted  under  this
 8    Article.  An employee who retires on annuity  after  December
 9    31, 1959 and before January 1, 1987, but before age 60, shall
10    receive such increases beginning in January of the year after
11    the year in which he attains age 60.
12        An  employee who retires from service on or after January
13    1, 1987 shall, upon the first annuity payment date  following
14    the  first anniversary of the date of retirement, or upon the
15    first annuity payment date following attainment  of  age  60,
16    whichever  occurs  later,  have  his  then  fixed and payable
17    monthly annuity increased by 3%, and such  annuity  shall  be
18    increased  by  an additional 3% of the original fixed annuity
19    on the same date each year thereafter.  Beginning in  January
20    of  1999,  such  increases  shall be at the rate of 3% of the
21    currently payable monthly annuity,  including  any  increases
22    previously granted under this Article.
23        (a-5)  Notwithstanding  the provisions of subsection (a),
24    upon the first annuity payment date following (1)  the  third
25    anniversary  of  retirement, (2) the attainment of age 53, or
26    (3) the date  60  days  after  the  effective  date  of  this
27    amendatory Act of the 92nd General Assembly, whichever occurs
28    latest,  the  monthly  pension  of an employee who retires on
29    annuity prior to  the  attainment  of  age  60  who  has  not
30    received  an increase under subsection (a) shall be increased
31    by 3%, and such annuity shall be increased by  an  additional
32    3%  of  the  current  payable monthly annuity, including such
33    increases previously granted under this Article, on the  same
34    date  each year thereafter. The increases provided under this
 
HB5168 Enrolled            -17-                LRB9212225EGfg
 1    subsection  are  in  lieu  of  the  increases   provided   in
 2    subsection (a).
 3        (b)  Subsections   (a)   and   (a-5)  are  The  foregoing
 4    provision is not  applicable  to  an  employee  retiring  and
 5    receiving  a  term  annuity,  as  herein  defined, nor to any
 6    otherwise qualified employee  who  retires  before  he  makes
 7    employee  contributions (at the 1/2 of 1% rate as provided in
 8    this Act) for this additional annuity for not less  than  the
 9    equivalent  of  one  full year. Such employee, however, shall
10    make arrangement to pay to the fund a balance of such 1/2  of
11    1%  contributions,  based  on his final salary, as will bring
12    such 1/2 of 1% contributions, computed without  interest,  to
13    the equivalent of or completion of one year's contributions.
14        Beginning   with   January,  1960,  each  employee  shall
15    contribute by means of salary deductions 1/2 of  1%  of  each
16    salary  payment,  concurrently  with  and  in addition to the
17    employee contributions otherwise made for annuity purposes.
18        Each such additional contribution shall be credited to an
19    account in the prior service annuity  reserve,  to  be  used,
20    together  with  city contributions, to defray the cost of the
21    specified annuity increments. Any balance in such account  at
22    the  beginning  of  each calendar year shall be credited with
23    interest at the rate of 3% per annum.
24        Such   additional   employee   contributions   are    not
25    refundable,  except  to an employee who withdraws and applies
26    for refund under this Article, and  in  cases  where  a  term
27    annuity  becomes  payable.  In  such  cases his contributions
28    shall be refunded, without  interest,  and  charged  to  such
29    account in the prior service annuity reserve.
30    (Source: P.A. 90-766, eff. 8-14-98.)

31        (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
32        Sec. 8-138.  Minimum annuities - Additional provisions.
33        (a)  An  employee who withdraws after age 65 or more with
 
HB5168 Enrolled            -18-                LRB9212225EGfg
 1    at least 20 years of service, for whom the amount of age  and
 2    service  and  prior service annuity combined is less than the
 3    amount stated  in  this  Section,  shall  from  the  date  of
 4    withdrawal,  instead  of all annuities otherwise provided, be
 5    entitled to receive an annuity for life of $150 a year,  plus
 6    1  1/2%  for each year of service, to and including 20 years,
 7    and 1 2/3% for each year of service over  20  years,  of  his
 8    highest  average  annual  salary  for any 4 consecutive years
 9    within the last 10 years of service immediately preceding the
10    date of withdrawal.
11        An employee who withdraws  after  20  or  more  years  of
12    service, before age 65, shall be entitled to such annuity, to
13    begin not earlier than upon attained age of 55 years if under
14    such  age  at withdrawal, reduced by 2% for each full year or
15    fractional part thereof that his attained age  is  less  than
16    65,  plus  an  additional  2% reduction for each full year or
17    fractional part thereof that his attained age when annuity is
18    to begin is less than 60 so that the total reduction  at  age
19    55 shall be 30%.
20        (b)  An employee who withdraws after July 1, 1957, at age
21    60  or  over,  with 20 or more years of service, for whom the
22    age and service and prior service annuity combined,  is  less
23    than  the  amount  stated  in this paragraph, shall, from the
24    date of withdrawal, instead of such annuities, be entitled to
25    receive an annuity for life equal to 1 2/3% for each year  of
26    service,  of  the  highest  average  annual  salary for any 5
27    consecutive  years  within  the  last  10  years  of  service
28    immediately preceding the date of withdrawal; provided,  that
29    in the case of any employee who withdraws on or after July 1,
30    1971,  such  employee age 60 or over with 20 or more years of
31    service, shall receive an annuity for life equal to 1.67% for
32    each of the first 10 years of service; 1.90% for each of  the
33    next  10  years of service; 2.10% for each year of service in
34    excess of 20 but not exceeding 30; and 2.30% for each year of
 
HB5168 Enrolled            -19-                LRB9212225EGfg
 1    service in excess of 30, based on the highest average  annual
 2    salary  for  any 4 consecutive years within the last 10 years
 3    of service immediately preceding the date of withdrawal.
 4        An employee who withdraws after July 1, 1957  and  before
 5    January 1, 1988, with 20 or more years of service, before age
 6    60  years  is  entitled to annuity, to begin not earlier than
 7    upon  attained  age  of  55  years,  if  under  such  age  at
 8    withdrawal, as computed  in  the  last  preceding  paragraph,
 9    reduced  0.25% for each full month or fractional part thereof
10    that his attained age when annuity is to begin is  less  than
11    60  if  the employee was born before January 1, 1936, or 0.5%
12    for each such month if the employee  was  born  on  or  after
13    January 1, 1936.
14        Any  employee  born before January 1, 1936, who withdraws
15    with 20 or more years of service, and any employee with 20 or
16    more years of service who withdraws on or  after  January  1,
17    1988,  may  elect  to  receive, in lieu of any other employee
18    annuity provided in this Section, an annuity for  life  equal
19    to 1.80% for each of the first 10 years of service, 2.00% for
20    each  of the next 10 years of service, 2.20% for each year of
21    service in excess of 20 but not exceeding 30, and  2.40%  for
22    each  year of service in excess of 30, of the highest average
23    annual salary for any 4 consecutive years within the last  10
24    years   of   service   immediately   preceding  the  date  of
25    withdrawal, to begin not earlier than upon attained age of 55
26    years, if under such age at  withdrawal,  reduced  0.25%  for
27    each  full month or fractional part thereof that his attained
28    age when annuity is to begin is less than 60; except that  an
29    employee  retiring  on or after January 1, 1988, at age 55 or
30    over but less than age  60,  having  at  least  35  years  of
31    service, or an employee retiring on or after July 1, 1990, at
32    age 55 or over but less than age 60, having at least 30 years
33    of service, or an employee retiring on or after the effective
34    date  of  this  amendatory Act of 1997, at age 55 or over but
 
HB5168 Enrolled            -20-                LRB9212225EGfg
 1    less than age 60, having at least 25 years of service,  shall
 2    not be subject to the reduction in retirement annuity because
 3    of retirement below age 60.
 4        However,  in  the  case  of an employee who retired on or
 5    after January 1, 1985 but before January 1, 1988, at  age  55
 6    or  older  and with at least 35 years of service, and who was
 7    subject  under  this  subsection  (b)  to  the  reduction  in
 8    retirement annuity because of retirement below age  60,  that
 9    reduction  shall  cease  to be effective January 1, 1991, and
10    the retirement annuity shall be recalculated accordingly.
11        Any employee who withdraws on or after July 1, 1990, with
12    20 or more years of service, may elect to receive, in lieu of
13    any other employee  annuity  provided  in  this  Section,  an
14    annuity  for  life equal to 2.20% for each year of service if
15    withdrawal is before 60 days after the effective date of this
16    amendatory Act of the 92nd General  Assembly,  or  2.40%  for
17    each  year  of  service  if  withdrawal  is 60 days after the
18    effective date of this amendatory Act  of  the  92nd  General
19    Assembly  or  later, of the highest average annual salary for
20    any 4 consecutive years within the last 10 years  of  service
21    immediately  preceding  the  date of withdrawal, to begin not
22    earlier than upon attained age of 55 years, if under such age
23    at  withdrawal,  reduced  0.25%  for  each  full   month   or
24    fractional part thereof that his attained age when annuity is
25    to begin is less than 60; except that an employee retiring at
26    age 55 or over but less than age 60, having at least 30 years
27    of  service,  shall  not  be  subject  to  the  reduction  in
28    retirement annuity because of retirement below age 60.
29        Any employee who withdraws on or after the effective date
30    of  this  amendatory  Act  of  1997  with 20 or more years of
31    service may elect to receive, in lieu of any  other  employee
32    annuity  provided  in this Section, an annuity for life equal
33    to 2.20%, for each year of service, if withdrawal  is  before
34    60  days  after  the effective date of this amendatory Act of
 
HB5168 Enrolled            -21-                LRB9212225EGfg
 1    the 92nd General Assembly, or 2.40% for each year of  service
 2    if  withdrawal  is  60  days after the effective date of this
 3    amendatory Act of the 92nd General Assembly or later, of  the
 4    highest  average  annual  salary  for any 4 consecutive years
 5    within the last 10 years of service immediately preceding the
 6    date of withdrawal, to begin not earlier than upon attainment
 7    of age 55 (age 50 if the employee has at least  30  years  of
 8    service),  reduced  0.25%  for  each  full month or remaining
 9    fractional part thereof that the employee's attained age when
10    annuity is to begin is less than 60; except that an  employee
11    retiring  at age 50 or over with at least 30 years of service
12    or at age 55 or over with at least 25 years of service  shall
13    not be subject to the reduction in retirement annuity because
14    of retirement below age 60.
15        The  maximum  annuity  payable  under part (a) and (b) of
16    this Section shall not exceed 70% of highest  average  annual
17    salary in the case of an employee who withdraws prior to July
18    1,  1971,  and 75% if withdrawal takes place on or after July
19    1, 1971 and prior to 60 days after the effective date of this
20    amendatory Act of  the  92nd  General  Assembly,  or  80%  if
21    withdrawal  is  60  days  after  the  effective  date of this
22    amendatory Act of the 92nd General Assembly or later. For the
23    purpose of the  minimum  annuity  provided  in  this  Section
24    $1,500  is considered the minimum annual salary for any year;
25    and the maximum annual salary for  the  computation  of  such
26    annuity  is  $4,800  for  any year before 1953, $6000 for the
27    years 1953 to 1956, inclusive, and the actual annual  salary,
28    as   salary   is  defined  in  this  Article,  for  any  year
29    thereafter.
30        To preserve rights existing on  December  31,  1959,  for
31    participants  and  contributors  on  that  date  to  the fund
32    created by the Court and Law  Department  Employees'  Annuity
33    Act,  who  became  participants  in  the fund provided for on
34    January 1, 1960, the maximum annual salary to  be  considered
 
HB5168 Enrolled            -22-                LRB9212225EGfg
 1    for such persons for the years 1955 and 1956 is $7,500.
 2        (c)  For  an  employee  receiving disability benefit, his
 3    salary for annuity purposes under paragraphs (a) and  (b)  of
 4    this   Section,   for   all  periods  of  disability  benefit
 5    subsequent to the year 1956,  is  the  amount  on  which  his
 6    disability benefit was based.
 7        (d)  An  employee with 20 or more years of service, whose
 8    entire  disability  benefit  credit  period  expires   before
 9    attainment  of  age  55  while still disabled for service, is
10    entitled upon withdrawal to the larger  of  (1)  the  minimum
11    annuity  provided  above,  assuming  he  is  then age 55, and
12    reducing such annuity to its actuarial equivalent as  of  his
13    attained  age  on  such date or (2) the annuity provided from
14    his age and service and prior service annuity credits.
15        (e)  The minimum annuity provisions do not apply  to  any
16    former  municipal employee receiving an annuity from the fund
17    who re-enters service as  a  municipal  employee,  unless  he
18    renders at least 3 years of additional service after the date
19    of re-entry.
20        (f)  An  employee  in  service  on  July  1, 1947, or who
21    became a contributor after July 1, 1947 and before attainment
22    of age 70, who withdraws after age  65,  with  less  than  20
23    years  of  service  for whom the annuity has been fixed under
24    this Article shall, instead of the annuity so fixed,  receive
25    an annuity as follows:
26        Such amount as he could have received had the accumulated
27    amounts  for  annuity  been  improved  with  interest  at the
28    effective  rate  to  the  date  of  his  withdrawal,  or   to
29    attainment  of age 70, whichever is earlier, and had the city
30    contributed to such earlier date for age and service  annuity
31    the  amount  that it would have contributed had he been under
32    age 65, after the date his annuity was  fixed  in  accordance
33    with  this  Article,  and  assuming his annuity were computed
34    from such accumulations as of his age on such  earlier  date.
 
HB5168 Enrolled            -23-                LRB9212225EGfg
 1    The  annuity  so  computed shall not exceed the annuity which
 2    would be payable under the other provisions of  this  Section
 3    if  the  employee  was  credited with 20 years of service and
 4    would qualify for annuity thereunder.
 5        (g)  Instead of the annuity provided in this Article,  an
 6    employee  having  attained  age  65 with at least 15 years of
 7    service who withdraws from service on or after July  1,  1971
 8    and  whose  annuity  computed  under other provisions of this
 9    Article  is  less  than  the  amount  provided   under   this
10    paragraph, is entitled to a minimum annuity for life equal to
11    1% of the highest average annual salary, as salary is defined
12    and  limited  in  this  Section  for  any 4 consecutive years
13    within the last 10 years of service for each year of service,
14    plus the sum of $25 for each year  of  service.  The  annuity
15    shall not exceed 60% of such highest average annual salary.
16        (g-1)  Instead  of  any other retirement annuity provided
17    in this Article, an employee who has at  least  10  years  of
18    service  and  withdraws  from  service on or after January 1,
19    1999 may elect to receive  a  retirement  annuity  for  life,
20    beginning no earlier than upon attainment of age 60, equal to
21    2.2% if withdrawal is before 60 days after the effective date
22    of  this  amendatory Act of the 92nd General Assembly or 2.4%
23    if withdrawal is 60 days after the  effective  date  of  this
24    amendatory  Act  of  the  92nd  General Assembly or later, of
25    final average salary for each year of service, subject  to  a
26    maximum  of  75%  of  final  average  salary if withdrawal is
27    before 60 days after the effective date  of  this  amendatory
28    Act  of the 92nd General Assembly, or 80% if withdrawal is 60
29    days after the effective date of this amendatory Act  of  the
30    92nd   General   Assembly   or  later.  For  the  purpose  of
31    calculating this annuity, "final average  salary"  means  the
32    highest  average annual salary for any 4 consecutive years in
33    the last 10 years of service.
34        (h)  The minimum annuities provided  under  this  Section
 
HB5168 Enrolled            -24-                LRB9212225EGfg
 1    shall be paid in equal monthly installments.
 2        (i)  The  amendatory  provisions  of  part (b) and (g) of
 3    this Section shall be effective July 1, 1971 and apply in the
 4    case of every qualifying employee  withdrawing  on  or  after
 5    July 1, 1971.
 6        (j)  The  amendatory provisions of this amendatory Act of
 7    1985 (P.A. 84-23) relating to the discount of annuity because
 8    of retirement prior to attainment  of  age  60,  and  to  the
 9    retirement  formula,  for  those born before January 1, 1936,
10    shall apply only to qualifying employees  withdrawing  on  or
11    after July 18, 1985.
12        (k)  Beginning  on January 1, 1999, the minimum amount of
13    employee's annuity shall be $850 per month for life  for  the
14    following  classes  of  employees, without regard to the fact
15    that withdrawal occurred prior to the effective date of  this
16    amendatory Act of 1998:
17             (1)  any  employee  annuitant  alive and receiving a
18        life annuity on the effective date of this amendatory Act
19        of 1998, except a reciprocal annuity;
20             (2)  any employee annuitant alive  and  receiving  a
21        term annuity on the effective date of this amendatory Act
22        of 1998, except a reciprocal annuity;
23             (3)  any  employee  annuitant  alive and receiving a
24        reciprocal  annuity  on  the  effective  date   of   this
25        amendatory  Act of 1998, whose service in this fund is at
26        least 5 years;
27             (4)  any employee annuitant withdrawing after age 60
28        on or after the effective date of this amendatory Act  of
29        1998, with at least 10 years of service in this fund.
30        The  increases  granted  under  items (1), (2) and (3) of
31    this subsection (k) shall not be limited by any other Section
32    of this Act.
33    (Source: P.A. 90-32,  eff.  6-27-97;  90-511,  eff.  8-22-97;
34    90-766, eff. 8-14-98.)
 
HB5168 Enrolled            -25-                LRB9212225EGfg
 1        (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
 2        Sec.  8-150.1.   Minimum annuities for widows.  The widow
 3    (otherwise eligible for widow's annuity under other  Sections
 4    of  this Article 8) of an employee hereinafter described, who
 5    retires from service or dies while in the service  subsequent
 6    to  the  effective date of this amendatory provision, and for
 7    which widow the amount of widow's annuity and  widow's  prior
 8    service  annuity  combined,  fixed or provided for such widow
 9    under other provisions of  this  Article  is  less  than  the
10    amount  provided  in  this Section, shall, from and after the
11    date her otherwise provided annuity would begin, in  lieu  of
12    such  otherwise  provided  widow's  and widow's prior service
13    annuity, be entitled to the  following  indicated  amount  of
14    annuity:
15        (a)  The  widow of any employee who dies while in service
16    on or after the date on which he attains age 60 if the  death
17    occurs  before July 1, 1990, or on or after the date on which
18    he attains age 55 if the death occurs on  or  after  July  1,
19    1990,  with  at least 20 years of service, or on or after the
20    date on which he attains age 50 if the  death  occurs  on  or
21    after  the effective date of this amendatory Act of 1997 with
22    at least 30 years of service, shall be entitled to an annuity
23    equal to one-half of the amount of annuity which her deceased
24    husband would have been entitled to receive had he  withdrawn
25    from the service on the day immediately preceding the date of
26    his  death,  conditional  upon such widow having attained the
27    age of 60 or more years on such  date  if  the  death  occurs
28    before July 1, 1990, or age 55 or more if the death occurs on
29    or  after July 1, 1990, or age 50 or more if the death occurs
30    on or after January 1, 1998 and the employee  is  age  50  or
31    over with at least 30 years of service or age 55 or over with
32    at  least  25  years  of  service.    Except  as  provided in
33    subsection (k), this  widow's  annuity  shall  not,  however,
34    exceed  the  sum  of  $500 a month if the employee's death in
 
HB5168 Enrolled            -26-                LRB9212225EGfg
 1    service occurs before January 23, 1987.  The widow's  annuity
 2    shall  not  be  limited  to  a  maximum  dollar amount if the
 3    employee's death in service occurs on or  after  January  23,
 4    1987.
 5        If  the employee dies in service before July 1, 1990, and
 6    if such widow of such described employee shall not be  60  or
 7    more  years of age on such date of death, the amount provided
 8    in the immediately preceding paragraph for a widow 60 or more
 9    years of age, shall, in the case of such  younger  widow,  be
10    reduced by 0.25% for each month that her then attained age is
11    less than 60 years if the employee was born before January 1,
12    1936  or  dies  in service on or after January 1, 1988, or by
13    0.5% for each month that her then attained age is  less  than
14    60  years  if  the employee was born on or after July 1, 1936
15    and dies in service before January 1, 1988.
16        If the employee dies in service on or after July 1, 1990,
17    and if the widow of the employee has not attained age  55  on
18    or  before the employee's date of death, the amount otherwise
19    provided in this subsection (a) shall be reduced by 0.25% for
20    each month that her then attained age is less than 55  years;
21    except  that  if  the  employee  dies  in service on or after
22    January 1, 1998 at age 50 or over with at least 30  years  of
23    service  or  at  age  55  or  over  with at least 25 years of
24    service, there shall be no reduction due to the  widow's  age
25    if  she  has attained age 50 on or before the employee's date
26    of death, and if the widow has not  attained  age  50  on  or
27    before  the  employee's  date  of  death the amount otherwise
28    provided in this subsection (a) shall be reduced by 0.25% for
29    each month that her then attained age is less than 50 years.
30        (b)  The widow of any employee who dies subsequent to the
31    date of his retirement on annuity, and who so retired  on  or
32    after  the  date  on  which he attained the age of 60 or more
33    years if retirement occurs before July  1,  1990,  or  on  or
34    after  the  date  on  which  he attained age 55 if retirement
 
HB5168 Enrolled            -27-                LRB9212225EGfg
 1    occurs on or after July 1, 1990, with at least  20  years  of
 2    service,  or on or after the date on which he attained age 50
 3    if the retirement occurs on or after the  effective  date  of
 4    this  amendatory  Act  of  1997  with  at  least  30 years of
 5    service, shall be entitled to an annuity equal to one-half of
 6    the amount of annuity which her deceased husband received  as
 7    of  the  date  of his retirement on annuity, conditional upon
 8    such widow having attained the age of 60 or more years on the
 9    date of her husband's retirement  on  annuity  if  retirement
10    occurs  before  July 1, 1990, or age 55 or more if retirement
11    occurs on or after July 1, 1990, or age 50  or  more  if  the
12    retirement  on annuity occurs on or after January 1, 1998 and
13    the employee is age 50 or over with  at  least  30  years  of
14    service or age 55 or over with at least 25 years of service.
15    Except  as  provided  in subsection (k), this widow's annuity
16    shall not, however, exceed the sum of $500  a  month  if  the
17    employee's death occurs before January 23, 1987.  The widow's
18    annuity  shall  not  be limited to a maximum dollar amount if
19    the employee's death occurs on or  after  January  23,  1987,
20    regardless  of  the  date  of  retirement;  provided that, if
21    retirement was before  January  23,  1987,  the  employee  or
22    eligible spouse repays the excess spouse refund with interest
23    at  the effective rate from the date of refund to the date of
24    repayment.
25        If the date of the employee's retirement  on  annuity  is
26    before  July  1,  1990,  and  if such widow of such described
27    employee shall not have attained such age of 60 or more years
28    on such date of her  husband's  retirement  on  annuity,  the
29    amount  provided in the immediately preceding paragraph for a
30    widow 60 or more years of age on the date  of  her  husband's
31    retirement  on  annuity,  shall,  in  the  case  of such then
32    younger widow, be reduced by 0.25% for each  month  that  her
33    then  attained age was less than 60 years if the employee was
34    born before January 1, 1936 or withdraws from  service on  or
 
HB5168 Enrolled            -28-                LRB9212225EGfg
 1    after  January  1,  1988,  or by 0.5% for each month that her
 2    then attained age is less than 60 years if the  employee  was
 3    born  on  or after January 1, 1936 and withdraws from service
 4    before January 1, 1988.
 5        If the date of the employee's retirement on annuity is on
 6    or after July 1, 1990, and if the widow of the  employee  has
 7    not  attained age 55 by the date of the employee's retirement
 8    on annuity, the amount otherwise provided in this  subsection
 9    (b)  shall  be  reduced by 0.25% for each month that her then
10    attained age is less  than  55  years;  except  that  if  the
11    employee  retires  on  annuity on or after January 1, 1998 at
12    age 50 or over with at least 30 years of service or at age 55
13    or over with at least 25 years of service, there shall be  no
14    reduction  due  to the widow's age if she has attained age 50
15    on or before the employee's date of death, and if  the  widow
16    has  not  attained age 50 on or before the employee's date of
17    death the amount otherwise provided in  this  subsection  (b)
18    shall  be  reduced  by  0.25%  for  each  month that her then
19    attained age is less than 50 years.
20        (c)  The  foregoing  provisions   relating   to   minimum
21    annuities  for  widows  shall  not  apply to the widow of any
22    former municipal employee receiving an annuity from the  fund
23    on August 9, 1965 or on the effective date of this amendatory
24    provision,  who  re-enters  service  as a municipal employee,
25    unless such employee renders at least 3 years  of  additional
26    service after the date of re-entry.
27        (d)  In computing the amount of annuity which the husband
28    specified  in  the  foregoing  paragraphs (a) and (b) of this
29    Section would have been entitled  to  receive,  or  received,
30    such  amount shall be the annuity to which such husband would
31    have been, or was entitled, before reduction in the amount of
32    his annuity  for  the  purposes  of  the  voluntary  optional
33    reversionary  annuity  provided  for in Section Sec. 8-139 of
34    this Article, if such option was elected.
 
HB5168 Enrolled            -29-                LRB9212225EGfg
 1        (e)  (Blank).
 2        (f)  (Blank).
 3        (g)  The amendatory provisions of this amendatory Act  of
 4    1985  relating  to annuity discount because of age for widows
 5    of employees born before January 1, 1936, shall apply only to
 6    qualifying  widows  of  employees  withdrawing  or  dying  in
 7    service on or after July 18, 1985.
 8        (h)  Beginning on January 1, 1999, the minimum amount  of
 9    widow's  annuity  shall  be  $800  per month for life for the
10    following classes of widows, without regard to the fact  that
11    the  death  of  the  employee occurred prior to the effective
12    date of this amendatory Act of 1998:
13             (1)  any widow annuitant alive and receiving a  life
14        annuity  on  the effective date of this amendatory Act of
15        1998, except a reciprocal annuity;
16             (2)  any widow annuitant alive and receiving a  term
17        annuity  on  the effective date of this amendatory Act of
18        1998, except a reciprocal annuity;
19             (3)  any  widow  annuitant  alive  and  receiving  a
20        reciprocal  annuity  on  the  effective  date   of   this
21        amendatory  Act  of 1998, whose employee spouse's service
22        in this fund was at least 5 years;
23             (4)  the widow of an employee with at least 10 years
24        of service in this fund who dies after retirement, if the
25        retirement occurred prior to the effective date  of  this
26        amendatory Act of 1998;
27             (5)  the widow of an employee with at least 10 years
28        of  service  in  this  fund who dies after retirement, if
29        withdrawal occurs on or after the effective date of  this
30        amendatory Act of 1998;
31             (6)  the  widow  of  an employee who dies in service
32        with at least 5 years of service in  this  fund,  if  the
33        death in service occurs on or after the effective date of
34        this amendatory Act of 1998.
 
HB5168 Enrolled            -30-                LRB9212225EGfg
 1        The  increases  granted under items (1), (2), (3) and (4)
 2    of this subsection (h) shall not  be  limited  by  any  other
 3    Section of this Act.
 4        (i)  The  widow  of  an  employee  who retired or died in
 5    service on or after January 1, 1985 and before July 1,  1990,
 6    at  age  55  or  older, and with at least 35 years of service
 7    credit,  shall  be  entitled  to  have  her  widow's  annuity
 8    increased, effective January 1, 1991, to an amount  equal  to
 9    50%  of  the  retirement  annuity  that the deceased employee
10    received on the  date  of  retirement,  or  would  have  been
11    eligible  to  receive  if he had retired on the day preceding
12    the date of his death in service, provided that if the  widow
13    had  not  attained  age  60  by  the  date  of the employee's
14    retirement or death in service, the  amount  of  the  annuity
15    shall  be  reduced  by  0.25%  for  each  month that her then
16    attained  age  was  less  than  age  60  if  the   employee's
17    retirement  or  death in service occurred on or after January
18    1, 1988, or by 0.5%  for each month that her attained age  is
19    less  than  age  60  if the employee's retirement or death in
20    service occurred prior to January 1, 1988.  However, in cases
21    where a refund of excess contributions  for  widow's  annuity
22    has  been  paid by the Fund, the increase in benefit provided
23    by this subsection (i) shall be contingent upon repayment  of
24    the  refund  to  the Fund with interest at the effective rate
25    from the date of refund to the date of payment.
26        (j)  If a deceased employee  is  receiving  a  retirement
27    annuity  at  the  time  of  death and that death occurs on or
28    after June 27, 1997, the widow may elect to receive, in  lieu
29    of  any other annuity provided under this Article, 50% of the
30    deceased employee's retirement annuity at the time  of  death
31    reduced  by  0.25% for each month that the widow's age on the
32    date of death is less than 55; except that  if  the  employee
33    dies on or after January 1, 1998 and withdrew from service on
34    or  after  June  27,  1997 at age 50 or over with at least 30
 
HB5168 Enrolled            -31-                LRB9212225EGfg
 1    years of service or at age 55 or over with at least 25  years
 2    of  service,  there  shall be no reduction due to the widow's
 3    age if she has attained age 50 on or  before  the  employee's
 4    date of death, and if the widow has not attained age 50 on or
 5    before  the  employee's  date  of  death the amount otherwise
 6    provided in this subsection (j) shall be reduced by 0.25% for
 7    each month that her age on the date of death is less than  50
 8    years.   However,   in   cases   where  a  refund  of  excess
 9    contributions for widow's annuity has been paid by the  Fund,
10    the  benefit  provided  by  this subsection (j) is contingent
11    upon repayment of the refund to the Fund with interest at the
12    effective rate from  the  date  of  refund  to  the  date  of
13    payment.
14        (k)  For  widows of employees who died before January 23,
15    1987 after retirement on annuity or in service,  the  maximum
16    dollar  amount  limitation  on widow's annuity shall cease to
17    apply, beginning with the first  annuity  payment  after  the
18    effective date of this amendatory Act of 1997; except that if
19    a refund of excess contributions for widow's annuity has been
20    paid by the Fund, the increase resulting from this subsection
21    (k)  shall not begin before the refund has been repaid to the
22    Fund, together with interest at the effective rate  from  the
23    date of the refund to the date of repayment.
24        (l)  In  lieu  of  any  other  annuity  provided  in this
25    Article, an eligible  spouse  of  an  employee  who  dies  in
26    service  at  least  60  days after the effective date of this
27    amendatory Act of the 92nd General Assembly with at least  10
28    years  of  service  shall be entitled to an annuity of 50% of
29    the minimum formula annuity earned and accrued to the  credit
30    of  the  employee  at the date of death.  For the purposes of
31    this subsection,  the  minimum  formula  annuity  earned  and
32    accrued  to  the credit of the employee is equal to 2.40% for
33    each year of service of the highest average annual salary for
34    any 4 consecutive years within the last 10 years  of  service
 
HB5168 Enrolled            -32-                LRB9212225EGfg
 1    immediately  preceding  the date of death, up to a maximum of
 2    80% of the highest average annual salary.  This annuity shall
 3    not be reduced due to the age of the employee or spouse.   In
 4    addition  to  any  other  eligibility requirements under this
 5    Article, the spouse is eligible for this annuity only if  the
 6    marriage was in effect for 10 full years or more.
 7    (Source:  P.A.  90-32,  eff.  6-27-97;  90-511, eff. 8-22-97;
 8    90-766, eff. 8-14-98.)

 9        (40 ILCS 5/8-158) (from Ch. 108 1/2, par. 8-158)
10        Sec.  8-158.  Child's  annuity.   A  child's  annuity  is
11    payable monthly after the death of  an employee parent to the
12    child until the child's  attainment  of  age  18,  under  the
13    following  conditions,  if  the  child  was  born  before the
14    employee  attained  age  65,  and  before  he  withdrew  from
15    service:
16             (a)  upon death resulting from  injury  incurred  in
17        the performance of an act of duty;
18             (b)  upon death in service from any cause other than
19        injury  incurred in the performance of an act of duty, if
20        the employee has at least 4 years of  service  after  the
21        date  of  his original entry into service, and at least 2
22        years after the date of his latest re-entry;
23             (b) (c)  upon death of  an  employee  who  withdraws
24        from  service after age 55 (or after age 50 with at least
25        30 years of service if withdrawal is on or after June 27,
26        1997) and  who  has  entered  upon  or  is  eligible  for
27        annuity.
28    Payment shall be made as provided in Section 8-125.
29    (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)

30        (40 ILCS 5/8-161) (from Ch. 108 1/2, par. 8-161)
31        Sec.  8-161.  Ordinary  disability  benefit.  An employee
32    while under age 65 and prior to January  1,  1979,  or  while
 
HB5168 Enrolled            -33-                LRB9212225EGfg
 1    under  age 70 and after January 1, 1979, who becomes disabled
 2    after the effective date as the result  of  any  cause  other
 3    than  injury  incurred  in  the performance of duty, shall be
 4    entitled  to  ordinary   disability   benefit   during   such
 5    disability, after the first 30 days thereof.
 6        The  first payment shall be made not later than one month
 7    after the benefit is  granted  and  each  subsequent  payment
 8    shall  be  made  not  later  than  one  month  after the last
 9    preceding payment.
10        The disability benefit prescribed herein shall cease when
11    the  first  of  the  following  dates  shall  occur  and  the
12    employee, if still disabled, shall thereafter be entitled  to
13    such annuity as is otherwise provided in this Article:
14        (a)  the date disability ceases.
15        (b)  the  date  the  disabled employee attains age 65 for
16    disability commencing prior to January 1, 1979.
17        (c)  the date the disabled employee attains  age  65  for
18    disability  commencing  prior  to attainment of age 60 in the
19    service and after January 1, 1979.
20        (d)  the date the disabled employee attains the age of 70
21    for disability commencing after attainment of age 60  in  the
22    service and after January 1, 1979.
23        (e)  the date the payments of the benefit shall exceed in
24    the  aggregate,  throughout  the employee's service, a period
25    equal to 1/4 of the total service rendered prior to the  date
26    of  disability  but  in  no  event  more  than  5  years.  In
27    computing such total service  any  period  during  which  the
28    employee   received  ordinary  disability  benefit  shall  be
29    excluded.
30        Any  employee  whose  ordinary  disability  benefit   was
31    terminated  after January 1, 1979 by reason of his attainment
32    of age 65 and who continues disabled after age 65  may  elect
33    before  July  1, 1986 to have such benefits resumed beginning
34    at  the  time  of  such  termination  and  continuing   until
 
HB5168 Enrolled            -34-                LRB9212225EGfg
 1    termination is required under this Section as amended by this
 2    amendatory  Act  of 1985.  The amount payable to any employee
 3    for such resumed benefit for any period shall be  reduced  by
 4    the  amount  of  any retirement annuity paid to such employee
 5    under this Article for the same period  of  time  or  by  any
 6    refund paid in lieu of annuity.
 7        Ordinary   disability   benefit   shall  be  50%  of  the
 8    employee's salary at the date of disability.
 9        For ordinary disability benefits paid before  January  1,
10    2001,  before  any  payment,  an amount equal to less the sum
11    ordinarily deducted from salary for all annuity purposes  for
12    such period for which the ordinary disability benefit is made
13    shall  be  deducted  from  such  payment  and credited to the
14    employee as a deduction from salary  for  that  period.   The
15    sums  so deducted shall be credited to the employee and shall
16    be regarded, for annuity and refund purposes,  as  an  amount
17    contributed by him.
18        For ordinary disability benefits paid on or after January
19    1,  2001,  the  fund  shall  credit sums equal to the amounts
20    ordinarily contributed by an employee  for  annuity  purposes
21    for  any  period  during which the employee receives ordinary
22    disability, and  those  sums  shall  be  deemed  for  annuity
23    purposes and purposes of Section 8-173 as amounts contributed
24    by the employee.  These amounts credited for annuity purposes
25    shall not be credited for refund purposes.
26        If  a participating employee is eligible for a disability
27    benefit under the federal Social Security Act, the amount  of
28    ordinary  disability  benefit under this Section attributable
29    to employment with  the  Chicago  Housing  Authority  or  the
30    Public  Building Commission of the city shall be reduced, but
31    not to less than $10  per  month,  by  the  amount  that  the
32    employee would be eligible to receive as a disability benefit
33    under  the  federal  Social Security Act, whether or not that
34    federal benefit is based on service  as  a  covered  employee
 
HB5168 Enrolled            -35-                LRB9212225EGfg
 1    under  this  Article.  The reduction shall be effective as of
 2    the month the employee is eligible for  the  social  security
 3    disability  benefit.   The  Board  may  make  this  reduction
 4    pending  determination of eligibility for the social security
 5    disability benefit, if it  appears  to  the  Board  that  the
 6    employee  may be eligible, and make an appropriate adjustment
 7    if  necessary  after  eligibility  for  the  social  security
 8    disability benefit is determined.  If the  employee's  social
 9    security  disability benefit is reduced or terminated because
10    of a refusal to  accept  rehabilitation  services  under  the
11    federal  Rehabilitation  Act  of  1973  or the federal Social
12    Security Act or because the employee is receiving a  workers'
13    compensation  benefit,  the ordinary disability benefit under
14    this Section  shall  be  reduced  as  if  the  employee  were
15    receiving the full social security disability benefit.
16        The  amount  of  ordinary disability benefit shall not be
17    reduced by reason of any increase in  the  amount  of  social
18    security disability benefit that takes effect after the month
19    of  the  initial  reduction under this Section, other than an
20    increase resulting from a correction in the  employee's  wage
21    records.
22    (Source: P.A. 84-23.)

23        (40 ILCS 5/8-164.1) (from Ch. 108 1/2, par. 8-164.1)
24        Sec. 8-164.1.  Group health benefit.
25        (a)  For  the  purposes  of this Section: (1) "annuitant"
26    means a person receiving an age and service annuity, a  prior
27    service  annuity,  a widow's annuity, a widow's prior service
28    annuity, or a minimum annuity, under Article 5, 6, 8  or  11,
29    by  reason  of  previous  employment  by  the City of Chicago
30    (hereinafter, in this Section,  "the  city");  (2)  "Medicare
31    Plan  annuitant" means an annuitant described in item (1) who
32    is eligible for Medicare benefits; and (3) "non-Medicare Plan
33    annuitant" means an annuitant described in item  (1)  who  is
 
HB5168 Enrolled            -36-                LRB9212225EGfg
 1    not eligible for Medicare benefits.
 2        (b)  The  city  shall  offer  group  health  benefits  to
 3    annuitants  and  their  eligible  dependents through June 30,
 4    2003 2002.  The basic city health care plan available  as  of
 5    June  30, 1988 (hereinafter called the basic city plan) shall
 6    cease to be a plan offered by the city, except  as  specified
 7    in  subparagraphs  (4)  and (5) below, and shall be closed to
 8    new enrollment or transfer of coverage for  any  non-Medicare
 9    Plan  annuitant  as  of  June  27, the effective date of this
10    amendatory Act of 1997.  The city  shall  offer  non-Medicare
11    Plan  annuitants  and their eligible dependents the option of
12    enrolling in its Annuitant Preferred Provider  Plan  and  may
13    offer  additional  plans  for  any  annuitant.   The city may
14    amend, modify, or terminate any of its  additional  plans  at
15    its  sole  discretion.   If  the  city  offers  more than one
16    annuitant plan, the city shall allow  annuitants  to  convert
17    coverage  from one city annuitant plan to another, except the
18    basic city plan, during times designated by the  city,  which
19    periods  of  time  shall  occur  at  least annually.  For the
20    period dating from  June  27,  the  effective  date  of  this
21    amendatory  Act  of  1997 through June 30, 2003 2002, monthly
22    premium rates may be increased for annuitants during the time
23    of their  participation  in  non-Medicare  plans,  except  as
24    provided in subparagraphs (1) through (4) of this subsection.
25             (1)  For  non-Medicare  Plan  annuitants who retired
26        prior to  January  1,  1988,  the  annuitant's  share  of
27        monthly premium for non-Medicare Plan coverage only shall
28        not  exceed the highest premium rate chargeable under any
29        city non-Medicare Plan annuitant coverage as of  December
30        1, 1996.
31             (2)  For  non-Medicare Plan annuitants who retire on
32        or after  January  1,  1988,  the  annuitant's  share  of
33        monthly premium for non-Medicare Plan coverage only shall
34        be  the  rate in effect on December 1, 1996, with monthly
 
HB5168 Enrolled            -37-                LRB9212225EGfg
 1        premium increases to take effect no sooner than April  1,
 2        1998  at  the  lower  of  (i) the premium rate determined
 3        pursuant to subsection (g) or (ii) 10% of the immediately
 4        previous month's rate for similar coverage.
 5             (3)  In  no  event  shall  any   non-Medicare   Plan
 6        annuitant's  share  of  monthly  premium for non-Medicare
 7        Plan coverage  exceed  10%  of  the  annuitant's  monthly
 8        annuity.
 9             (4)  Non-Medicare  Plan  annuitants who are enrolled
10        in the basic city plan as of July 1, 1998 may  remain  in
11        the  basic city plan, if they so choose, on the condition
12        that they are not entitled to the caps on rates set forth
13        in subparagraphs (1) through (3), and their premium  rate
14        shall   be   the   rate  determined  in  accordance  with
15        subsections (c) and (g).
16             (5)  Medicare  Plan  annuitants  who  are  currently
17        enrolled in the basic city  plan  for  Medicare  eligible
18        annuitants  may  remain  in that plan, if they so choose,
19        through June 30, 2003  2002.   Annuitants  shall  not  be
20        allowed to enroll in or transfer into the basic city plan
21        for  Medicare  eligible  annuitants  on  or after July 1,
22        1999.  The city shall  continue  to  offer  annuitants  a
23        supplemental   Medicare   Plan   for   Medicare  eligible
24        annuitants through June 30, 2003 2002, and the  city  may
25        offer additional plans to Medicare eligible annuitants in
26        its sole discretion.  All Medicare Plan annuitant monthly
27        rates  shall be determined in accordance with subsections
28        (c) and (g).
29        (c)  The city shall pay 50% of the  aggregated  costs  of
30    the   claims   or   premiums,  whichever  is  applicable,  as
31    determined in accordance with subsection (g),  of  annuitants
32    and  their  dependents under all health care plans offered by
33    the city.  The city may reduce its obligation by  application
34    of  price  reductions  obtained  as  a  result  of  financial
 
HB5168 Enrolled            -38-                LRB9212225EGfg
 1    arrangements with providers or plan administrators.
 2        (d)    From January 1, 1993 until June 30, 2003 2002, the
 3    board shall pay to the city on behalf of each of the  board's
 4    annuitants  who  chooses  to participate in any of the city's
 5    plans the following amounts: up to a maximum of $75 per month
 6    for each such annuitant  who  is  not  qualified  to  receive
 7    medicare  benefits,  and up to a maximum of $45 per month for
 8    each such annuitant who  is  qualified  to  receive  medicare
 9    benefits.
10        Commencing  on  August  23,  the  effective  date of this
11    amendatory Act of 1989, the board is authorized to pay to the
12    board of education on behalf of each person  who  chooses  to
13    participate  in  the  board  of  education's plan the amounts
14    specified in this subsection (d) during the years  indicated.
15    For  the  period  January  1,  1988  through  August  23, the
16    effective date of this amendatory  Act  of  1989,  the  board
17    shall   pay   to   the  board  of  education  annuitants  who
18    participate in the board of education's health benefits  plan
19    for  annuitants  the following amounts: $10 per month to each
20    annuitant who is not qualified to receive medicare  benefits,
21    and  $14  per  month  to  each  annuitant who is qualified to
22    receive medicare benefits.
23        The payments described in this subsection shall  be  paid
24    from  the  tax  levy  authorized  under  Section  8-189; such
25    amounts shall be credited to the reserve for  group  hospital
26    care  and  group  medical and surgical plan benefits, and all
27    payments to the city required under this subsection shall  be
28    charged against it.
29        (e)  The city's obligations under subsections (b) and (c)
30    shall  terminate on June 30, 2003 2002, except with regard to
31    covered expenses incurred but not paid as of that date.  This
32    subsection shall not affect other  obligations  that  may  be
33    imposed by law.
34        (f)  The  group  coverage plans described in this Section
 
HB5168 Enrolled            -39-                LRB9212225EGfg
 1    are  not  and  shall  not  be  construed  to  be  pension  or
 2    retirement benefits for purposes of Section 5 of Article XIII
 3    of the Illinois Constitution of 1970.
 4        (g)  For each annuitant plan offered  by  the  city,  the
 5    aggregate  cost  of claims, as reflected in the claim records
 6    of the plan administrator, shall be estimated  by  the  city,
 7    based upon a written determination by a qualified independent
 8    actuary  to  be appointed and paid by the city and the board.
 9    If the estimated annual cost for each annuitant plan  offered
10    by  the  city  is  more  than  the  estimated  amount  to  be
11    contributed by the city for that plan pursuant to subsections
12    (b) and (c) during that year plus the estimated amounts to be
13    paid  pursuant  to  subsection  (d)  and by the other pension
14    boards on  behalf  of  other  participating  annuitants,  the
15    difference  shall  be paid by all annuitants participating in
16    the plan, except as provided in subsection  (b).   The  city,
17    based  upon  the  determination  of  the independent actuary,
18    shall set the monthly amounts to be paid by the participating
19    annuitants.   The board may deduct the amounts to be paid  by
20    its  annuitants  from  the  participating annuitants' monthly
21    annuities.
22        If it is determined from the city's annual audit, or from
23    audited experience data, that the total amount  paid  by  all
24    participating annuitants was more or less than the difference
25    between  (1)  the  cost  of  providing  the group health care
26    plans, and (2) the sum of the amount to be paid by  the  city
27    as  determined  under  subsection (c) and the amounts paid by
28    all the pension boards, then the independent actuary and  the
29    city  shall  account  for the excess or shortfall in the next
30    year's  payments  by  annuitants,  except  as   provided   in
31    subsection (b).
32        (h)  An  annuitant  may  elect to terminate coverage in a
33    plan at the end of any month, which election shall  terminate
34    the  annuitant's  obligation  to contribute toward payment of
 
HB5168 Enrolled            -40-                LRB9212225EGfg
 1    the excess described in subsection (g).
 2        (i)  The city shall advise  the  board  of  all  proposed
 3    premium  increases  for health care at least 75 days prior to
 4    the effective date of the change, and any increase  shall  be
 5    prospective only.
 6    (Source: P.A. 90-32, eff. 6-27-97.)

 7        (40 ILCS 5/8-168) (from Ch. 108 1/2, par. 8-168)
 8        Sec.  8-168.  Refunds  - Withdrawal before age 55 or with
 9    less than 10 years of service.
10        1.  An employee, without regard to length of service, who
11    withdraws before age 55, and any employee with less  than  10
12    years  of  service  who  withdraws  before  age  60, shall be
13    entitled to a refund of the accumulated sums to  his  credit,
14    as of the date of withdrawal, for age and service annuity and
15    widow's  annuity  from  amounts contributed by him, including
16    interest credited and including amounts contributed  for  him
17    for  age and service and widow's annuity purposes by the city
18    while receiving duty disability benefits; provided that  such
19    amounts  contributed  by  the  city  after December 31, 1981,
20    while the employee is receiving duty disability benefits, and
21    amounts credited to the employee for annuity purposes by  the
22    fund after December 31, 2000, while the employee is receiving
23    ordinary  disability  benefits,  shall  not  be  credited for
24    refund purposes. If he is a present employee he shall also be
25    entitled to a refund  of  the  accumulations  from  any  sums
26    contributed by him, and applied to any municipal pension fund
27    superseded by this fund.
28        2.  Upon  receipt  of the refund, the employee surrenders
29    and forfeits all rights to any annuity or other benefits, for
30    himself and for any other persons who  might  have  benefited
31    through him; provided that he may have such period of service
32    counted in computing the term of his service if he becomes an
33    employee   before   age  65,  excepting  as  limited  by  the
 
HB5168 Enrolled            -41-                LRB9212225EGfg
 1    provisions of paragraph (a) (3)  of  Section  8-232  of  this
 2    Article  relating  to  the  basis  of  computing  the term of
 3    service.
 4        3.  Any such employee shall retain such right to a refund
 5    of such amounts  when  he  shall  apply  for  same  until  he
 6    re-enters  the  service  or until the amount of annuity shall
 7    have been fixed as provided in this Article.  Thereafter,  no
 8    such right shall exist in the case of any such employee.
 9        4.  Any  such municipal employee who shall have served 10
10    or  more  years  and  who  shall  not  withdraw  the  amounts
11    aforesaid to which he shall have a right of refund shall have
12    a right to annuity as stated in this Article.
13        5.  Any such municipal employee  who  shall  have  served
14    less  than 10 years and who shall not withdraw the amounts to
15    which he shall have a right to refund shall have a  right  to
16    have all such amounts and all other amounts to his credit for
17    annuity  purposes  on  date  of  his  withdrawal from service
18    retained to his credit and  improved  by  interest  while  he
19    shall  be  out of the service at the rate of 3 1/2% or 3% per
20    annum (whichever rate shall apply  under  the  provisions  of
21    Section  8-155 of this Article) and used for annuity purposes
22    for his benefit and the benefit of any person  who  may  have
23    any  right  to  annuity  through  him because of his service,
24    according to the provisions of this Article in the event that
25    he shall subsequently re-enter the service and  complete  the
26    number  of  years  of  service necessary to attain a right to
27    annuity; but such sum shall be improved by  interest  to  his
28    credit  while  he  shall  be out of the service only until he
29    shall have become 65 years of age.
30    (Source: P.A. 82-283.)

31        (40 ILCS 5/8-171) (from Ch. 108 1/2, par. 8-171)
32        Sec. 8-171. Refund in lieu of annuity.   In  lieu  of  an
33    annuity,  an  employee  who withdraws and whose annuity would
 
HB5168 Enrolled            -42-                LRB9212225EGfg
 1    amount to less than $800 a  month  for  life,  may  elect  to
 2    receive a refund of his accumulated contributions for annuity
 3    purposes, based on the amounts contributed by him.
 4        The  widow of any employee, eligible for annuity upon the
 5    death of her husband, whose widow's annuity would  amount  to
 6    less  than  $800  a  month  for life, may, in lieu of widow's
 7    annuity,  elect  to  receive  a  refund  of  the  accumulated
 8    contributions for annuity  purposes,  based  on  the  amounts
 9    contributed  by her deceased employee husband, but reduced by
10    any amounts theretofore paid to him in the form of an annuity
11    or refund out of such accumulated contributions.
12        Accumulated  contributions  shall  mean  the  amounts   -
13    including  the interest credited thereon - contributed by the
14    employee for age and service and widow's annuity to the  date
15    of his withdrawal or death, whichever first occurs, including
16    any  amounts  contributed  for him as salary deductions while
17    receiving duty disability benefits,  and,  if  not  otherwise
18    included,  any accumulations from sums contributed by him and
19    applied to any pension fund superseded by this fund; provided
20    that such amounts contributed by the city after December  31,
21    1981 while the employee is receiving duty disability benefits
22    and  amounts credited to the employee for annuity purposes by
23    the fund after  December  31,  2000  while  the  employee  is
24    receiving ordinary disability shall not be included.
25        The acceptance of such refund in lieu of widow's annuity,
26    on the part of a widow, shall not deprive a child or children
27    of  the right to receive a child's annuity as provided for in
28    Sections 8-158 and 8-159 of this Article, and  neither  shall
29    the  payment  of a child's annuity in the case of such refund
30    to a widow reduce the amount herein set forth  as  refundable
31    to such widow electing a refund in lieu of widow's annuity.
32    (Source: P.A. 91-887, eff. 7-6-00.)

33        (40 ILCS 5/8-227) (from Ch. 108 1/2, par. 8-227)
 
HB5168 Enrolled            -43-                LRB9212225EGfg
 1        Sec.  8-227.  Service  as  police officer, firefighter or
 2    teacher.
 3        (a)  Service rendered by an employee as a police  officer
 4    and  member of the regularly constituted police department of
 5    the city, or as a firefighter and regular member of the  paid
 6    fire  department  of  the city, or as a teacher in the public
 7    school system in the city shall be counted, for the  purposes
 8    of  this  Article,  as service rendered as an employee of the
 9    city.  Salary received for any such service shall be treated,
10    for the purposes of this Article, as salary received for  the
11    performance of duty as an employee.
12        (b)  Subsection  (a)  applies  The  foregoing  provisions
13    shall apply to service rendered after the effective date only
14    if  the  employee  pays  to the Fund, prior to his separation
15    from service, an amount equal to what would have  accumulated
16    in  his  or  her  account  from salary deductions as employee
17    contributions, including interest at the effective  rate,  if
18    such  contributions  had  been  made  for age and service and
19    spouse's annuity during all of such service;  provided,  that
20    no  service  shall  be  counted  or payments received for any
21    period of service for which the employee retains or  has  not
22    forfeited  his or her rights to credit for the same period of
23    service in another annuity and benefit fund, or pension fund,
24    in operation in the city  for  the  benefit  of  such  police
25    officers,  firefighters, or teachers.  The amount transferred
26    to the Fund under item (1) of Section 5-233.1, if any,  shall
27    be  credited  against  the  contributions required under this
28    subsection.
29    (Source: P.A. 81-1536.)

30        (40 ILCS 5/8-230.7)
31        Sec.  8-230.7.   Service  rendered  to  Public   Building
32    Commission.
33        (a)  An   employee  or  former  employee  of  the  Public
 
HB5168 Enrolled            -44-                LRB9212225EGfg
 1    Building Commission of the city who  has  established  credit
 2    under  the  Fund  with regard to service to an employer other
 3    than  the  Public  Building  Commission  of  the   city   may
 4    contribute  to the Fund and receive credit for all periods of
 5    full-time employment with by the Public  Building  Commission
 6    created  by  the  employing  city  occurring prior to 60 days
 7    after the effective date of this amendatory Act,  except  for
 8    those  periods  for  which  the  employee  retains a right to
 9    credit in another public pension fund  or  retirement  system
10    established  under  this  Code.  Such service credit shall be
11    paid for and granted on the same basis  and  under  the  same
12    conditions  as  are  applicable  in the case of employees who
13    make payment for past service under Section  8-230,  provided
14    that  the  person  must  also  pay the corresponding employer
15    contributions, and further provided  that  the  contributions
16    and  service  credit  are  permitted under Section 415 of the
17    Internal Revenue Code of 1986.  The  contributions  shall  be
18    based  on the salary actually received by the person from the
19    Commission for that employment.
20        (b)  A   person   establishing   service   credit   under
21    subsection (a) or electing to participate in the  Fund  under
22    subsection  (d)  may,  at  the  same  time, reinstate service
23    credit that was terminated through receipt  of  a  refund  by
24    repaying  to  the Fund the amount of the refund plus interest
25    at the effective rate from the date of the refund to the date
26    of repayment.
27        (c)  An eligible  person  may  establish  service  credit
28    under  subsection  (a)  and  reinstate  service  credit under
29    subsection (b) without returning  to  active  service  as  an
30    employee  under  this Article, but the required contributions
31    and repayment must be received by the Fund before the  person
32    begins to receive a retirement annuity under this Article.
33        (d)  Within  60 days after beginning full-time employment
34    with the Public Building Commission of the city (or within 60
 
HB5168 Enrolled            -45-                LRB9212225EGfg
 1    days after the effective date of this amendatory Act  of  the
 2    92nd  General  Assembly, whichever is later), a person having
 3    service credits in this Fund or reinstating  service  credits
 4    under  subsection  (b)  may elect to participate in this Fund
 5    with respect to that Public Building  Commission  employment.
 6    An  employee  who  participates  in this Fund with respect to
 7    Public Building Commission employment shall not, with respect
 8    to the same period of employment, participate  in  any  other
 9    pension  plan  for  employees  of  the  Commission  for which
10    contributions are made by the Commission,  except  that  this
11    provision  shall not prevent an employee from making elective
12    contributions to a plan of deferred compensation during  that
13    period.  An election under this subsection (d), once made, is
14    irrevocable.
15        Participation  under this subsection shall be on the same
16    basis and under the same conditions as are applicable in  the
17    case  of  participating  employees  of  the  city.   Employee
18    contributions  shall be based on the salary actually received
19    by the employee for that employment.  Employer  contributions
20    shall  be  paid by the Public Building Commission rather than
21    the city, at a rate to be determined by the Retirement Board.
22    (Source: P.A. 90-766, eff. 8-14-98.)

23        (40 ILCS 5/8-230.9 new)
24        Sec.  8-230.9.   Service  rendered  to  Chicago   Housing
25    Authority.
26        (a)  Within  60 days after beginning full-time employment
27    with the Chicago Housing Authority (or within 60  days  after
28    the effective date of this amendatory Act of the 92nd General
29    Assembly,  whichever  is  later),  a  person  having  service
30    credits  in  this  Fund  or reinstating service credits under
31    subsection (c) may elect to participate  in  this  Fund  with
32    respect  to  that  Chicago  Housing Authority employment.  An
33    employee who  participates  in  this  Fund  with  respect  to
 
HB5168 Enrolled            -46-                LRB9212225EGfg
 1    Chicago  Housing Authority employment shall not, with respect
 2    to the same period of employment, participate  in  any  other
 3    pension  plan  for  employees  of  the  Authority  for  which
 4    contributions  are  made  by  the Authority, except that this
 5    provision shall not prevent an employee from making  elective
 6    contributions  to a plan of deferred compensation during that
 7    period.  An election under this subsection (a), once made, is
 8    irrevocable.
 9        Participation under this subsection shall be on the  same
10    basis  and under the same conditions as are applicable in the
11    case  of  participating  employees  of  the  city.   Employee
12    contributions shall be based on the salary actually  received
13    by  the employee for that employment.  Employer contributions
14    shall be paid by the Chicago Housing  Authority  rather  than
15    the city, at a rate to be determined by the Retirement Board.
16        (b)  An  employee  or  former  employee  of  the  Chicago
17    Housing  Authority  who has established credit under the Fund
18    with regard to service to an employer other than the  Chicago
19    Housing  Authority  may  contribute  to  the Fund and receive
20    credit for all  periods  of  full-time  employment  with  the
21    Chicago  Housing  Authority  occurring prior to 60 days after
22    the effective date of this amendatory Act, except  for  those
23    periods  for  which the employee retains a right to credit in
24    another public pension fund or retirement system  established
25    under  this  Code.  Such service credit shall be paid for and
26    granted on the same basis and under the  same  conditions  as
27    are  applicable in the case of employees who make payment for
28    past service under Section 8-230, provided  that  the  person
29    must  also  pay the corresponding employer contributions, and
30    further provided that the contributions  and  service  credit
31    are  permitted under Section 415 of the Internal Revenue Code
32    of 1986.  The contributions shall  be  based  on  the  salary
33    actually  received  by the person from the Authority for that
34    employment.
 
HB5168 Enrolled            -47-                LRB9212225EGfg
 1        (c)  A   person   establishing   service   credit   under
 2    subsection (b) or electing to participate in the  Fund  under
 3    subsection  (a)  may,  at  the  same  time, reinstate service
 4    credit that was terminated through receipt  of  a  refund  by
 5    repaying  to  the Fund the amount of the refund plus interest
 6    at the effective rate from the date of the refund to the date
 7    of repayment.
 8        (d)  An eligible  person  may  establish  service  credit
 9    under  subsection  (b)  and  reinstate  service  credit under
10    subsection (c) without returning  to  active  service  as  an
11    employee  under  this Article, but the required contributions
12    and repayment must be received by the Fund before the  person
13    begins to receive a retirement annuity under this Article.

14        (40 ILCS 5/8-230.10 new)
15        Sec.  8-230.10.   Service  rendered to IHDA.  An employee
16    with at least 10 years of creditable service in the Fund  may
17    establish  service  credit  for  up  to  7 years of full-time
18    employment by the Illinois Housing Development Authority  for
19    which  the  employee  does  not have credit in another public
20    pension fund or retirement system.
21        To establish  service  credit  under  this  Section,  the
22    employee must apply to the Fund in writing by January 1, 2003
23    and  pay to the Fund, at any time before beginning to receive
24    a retirement annuity under this  Article,  an  amount  to  be
25    determined   by   the   Fund,   consisting  of  (i)  employee
26    contributions based on the salary actually  received  by  the
27    person  from  the  Illinois Housing Development Authority for
28    that employment and the contribution rates then in effect for
29    employees  of  the  Fund,  (ii)  the  corresponding  employer
30    contributions, and (iii) regular interest on the  amounts  in
31    items  (i)  and (ii) from the date of the service to the date
32    of payment.
 
HB5168 Enrolled            -48-                LRB9212225EGfg
 1        (40 ILCS 5/8-243.2) (from Ch. 108 1/2, par. 8-243.2)
 2        Sec. 8-243.2.  Alternative annuity for city officers.
 3        (a)  For  the  purposes  of  this  Section  and  Sections
 4    8-243.1 and 8-243.3, "city officer" means the city clerk, the
 5    city treasurer, or an alderman of the city elected by vote of
 6    the people, while serving in that capacity or as provided  in
 7    subsection (f), who has elected to participate in the Fund.
 8        (b)  Any  elected  city  officer,  while  serving in that
 9    capacity or as provided  in  subsection  (f),  may  elect  to
10    establish  alternative  credits for an alternative annuity by
11    electing   in   writing   to    make   additional    optional
12    contributions   in  accordance  with  this  Section  and  the
13    procedures established  by  the  board.   Such  elected  city
14    officer   may  discontinue  making  the  additional  optional
15    contributions by notifying the Fund in writing in  accordance
16    with this Section and procedures established by the board.
17        Additional  optional  contributions  for  the alternative
18    annuity shall be as follows:
19             (1)  For service after the  option  is  elected,  an
20        additional   contribution   of  3%  of  salary  shall  be
21        contributed to the Fund on the same basis and  under  the
22        same  conditions as contributions required under Sections
23        8-174 and 8-182.
24             (2)  For service before the option  is  elected,  an
25        additional  contribution  of  3%  of  the  salary for the
26        applicable  period  of  service,  plus  interest  at  the
27        effective rate from the date of service to  the  date  of
28        payment.   All  payments for past service must be paid in
29        full before credit  is  given.   No  additional  optional
30        contributions  may  be made for any period of service for
31        which credit has been previously forfeited by  acceptance
32        of  a  refund,  unless  the refund is repaid in full with
33        interest at the effective rate from the date of refund to
34        the date of repayment.
 
HB5168 Enrolled            -49-                LRB9212225EGfg
 1        (c)  In lieu of the retirement annuity otherwise  payable
 2    under  this  Article, any city officer elected by vote of the
 3    people who (1) has elected to participate  in  the  Fund  and
 4    make  additional  optional  contributions  in accordance with
 5    this Section, and (2) has attained age 55 60 with at least 10
 6    years of service credit, or has attained age 60  65  with  at
 7    least  8  years  of  service  credit,  may  elect to have his
 8    retirement  annuity  computed  as   follows:    3%   of   the
 9    participant's  salary  at  the time of termination of service
10    for each of the first 8 years of service credit, plus  4%  of
11    such  salary  for each of the next 4 years of service credit,
12    plus 5% of such salary for each year  of  service  credit  in
13    excess  of  12  years,  subject  to  a maximum of 80% of such
14    salary.  To the extent such elected  city  officer  has  made
15    additional  optional  contributions  with  respect  to only a
16    portion of  his  years  of  service  credit,  his  retirement
17    annuity  will  first  be  determined  in accordance with this
18    Section to the extent such additional optional  contributions
19    were made, and then in accordance with the remaining Sections
20    of this Article to the extent of years of service credit with
21    respect  to  which additional optional contributions were not
22    made.
23        (d)  In lieu of the disability benefits otherwise payable
24    under this Article, any city officer elected by vote  of  the
25    people  who  (1)  has elected to participate in the Fund, and
26    (2) has become permanently disabled and as a  consequence  is
27    unable  to  perform  the  duties  of  his office, and (3) was
28    making optional contributions in accordance with this Section
29    at the time the disability was incurred, may elect to receive
30    a  disability  annuity  calculated  in  accordance  with  the
31    formula  in  subsection  (c).   For  the  purposes  of   this
32    subsection,  such  elected  city  officer shall be considered
33    permanently disabled only if:  (i) disability occurs while in
34    service as an elected city officer and is of such a nature as
 
HB5168 Enrolled            -50-                LRB9212225EGfg
 1    to prevent him from reasonably performing the duties  of  his
 2    office at the time; and (ii) the board has received a written
 3    certification  by at least 2 licensed physicians appointed by
 4    it stating  that  such  officer  is  disabled  and  that  the
 5    disability is likely to be permanent.
 6        (e)  Refunds  of  additional optional contributions shall
 7    be made on the same basis and under the  same  conditions  as
 8    provided  under  Sections  8-168,  8-170  and 8-171. Interest
 9    shall be credited at the effective rate on the same basis and
10    under  the  same  conditions  as  for  other   contributions.
11    Optional  contributions  shall be accounted for in a separate
12    Elected City Officer Optional Contribution Reserve.  Optional
13    contributions under this Section shall  be  included  in  the
14    amount of employee contributions used to compute the tax levy
15    under Section 8-173.
16        (f)  The   effective   date  of  this  plan  of  optional
17    alternative benefits and contributions shall be July 1, 1990,
18    or the date upon which approval is  received  from  the  U.S.
19    Internal Revenue Service, whichever is later.
20        The   plan   of   optional   alternative   benefits   and
21    contributions  shall  not  be  available  to  any former city
22    officer or employee receiving an annuity from the Fund on the
23    effective date of the plan, unless he re-enters service as an
24    elected  city  officer  and  renders  at  least  3  years  of
25    additional service after the date of  re-entry.   However,  a
26    person  who  holds  office  as a city officer on June 1, 1995
27    April 30, 1991 may elect  to  participate  in  the  plan,  to
28    transfer  credits  into  the Fund from other Articles of this
29    Code, and  to  make  the  contributions  required  for  prior
30    service,  until  30  days  after  the  effective date of this
31    amendatory Act of the 92nd General Assembly  the  plan  takes
32    effect,  notwithstanding  the  ending  of  his term of office
33    prior to that effective date; in the event that the person is
34    already receiving an annuity from  this  Fund  or  any  other
 
HB5168 Enrolled            -51-                LRB9212225EGfg
 1    Article of this Code at the time of making this election, the
 2    annuity   shall  be  recalculated  to  include  any  increase
 3    resulting from participation in the plan, with such  increase
 4    taking effect on the effective date of the election plan.
 5    (Source: P.A. 86-1488; 87-794.)

 6        (40 ILCS 5/9-121.15)
 7        Sec. 9-121.15. Transfer of credit from Article 14 system.
 8    A  current or former An employee shall be entitled to service
 9    credit in the Fund for any creditable service transferred  to
10    this  Fund  from the State Employees' Retirement System under
11    Section 14-105.7 of this Code.  Credit under this Fund  shall
12    be  granted  upon receipt by the Fund of the amounts required
13    to be  transferred  under  Section  14-105.7;  no  additional
14    contribution is necessary.
15    (Source: P.A. 90-511, eff. 8-22-97.)

16        (40 ILCS 5/9-121.16 new)
17        Sec.  9-121.16.  Contractual  service  to  the Retirement
18    Board.  A person  who  has  rendered  continuous  contractual
19    services  (other  than  legal  or  actuarial services) to the
20    Retirement Board for  a  period  of  at  least  5  years  may
21    establish  creditable  service in the Fund for up to 10 years
22    of those services by making written application to the  Board
23    before  July  1,  2003 and paying to the Fund an amount to be
24    determined by the Board, equal to the employee  contributions
25    that  would  have  been  required  if those services had been
26    performed as an employee.
27        For the purposes of calculating the required payment, the
28    Board may determine the applicable salary equivalent based on
29    the compensation received by the person for performing  those
30    contractual services.  The salary equivalent calculated under
31    this  Section shall not be used for determining final average
32    salary under Section 9-134 or any other  provisions  of  this
 
HB5168 Enrolled            -52-                LRB9212225EGfg
 1    Code.
 2        A  person  may  not  make  optional  contributions  under
 3    Section  9-121.6 or 9-179.3 for periods of credit established
 4    under this Section.

 5        (40 ILCS 5/9-134) (from Ch. 108 1/2, par. 9-134)
 6        Sec. 9-134.  Minimum annuity - Additional provisions.
 7        (a)  An employee who withdraws after July 1, 1957 at  age
 8    60  or  more  with  20 or more years of service, for whom the
 9    amount of age and service and prior service annuity  combined
10    is  less than the amount stated in this Section from the date
11    of withdrawal, instead of all annuities otherwise provided in
12    this Article, is entitled to receive an annuity for  life  of
13    an  amount  equal  to 1 2/3% for each year of service, of his
14    highest average annual salary for  any  5  consecutive  years
15    within the last 10 years of service immediately preceding the
16    date of withdrawal; provided that in the case of any employee
17    who  withdraws on or after July 1, 1971, such employee age 60
18    or over with 20 or more years of service, or who withdraws on
19    or after January 1, 1982 and on or after attainment of age 65
20    with 10 or more years of service, shall  instead  receive  an
21    annuity  for  life  equal  to  1.67% for each of the first 10
22    years of service; 1.90% for each of  the  next  10  years  of
23    service;  2.10%  for each year of service in excess of 20 but
24    not exceeding 30; and 2.30%  for  each  year  of  service  in
25    excess  of 30, based on the highest average annual salary for
26    any 4 consecutive years within the last 10 years  of  service
27    immediately preceding the date of withdrawal.
28        An  employee  who withdraws after July 1, 1957, but prior
29    to January 1, 1988, with 20 or more years of service,  before
30    age  60 is entitled to annuity, to begin not earlier than age
31    55, if under such age at withdrawal, as computed in the  last
32    preceding paragraph, reduced 1/2 of 1% for each full month or
33    fractional part thereof that his attained age when annuity is
 
HB5168 Enrolled            -53-                LRB9212225EGfg
 1    to  begin is less than 60 to the end that the total reduction
 2    at age 55 shall be 30%, except that an employee  retiring  at
 3    age 55 or over but less than age 60, having at least 35 years
 4    of  service,  shall  not  be  subject to the reduction in his
 5    retirement annuity because of retirement below age 60.
 6        An employee who withdraws on or after  January  1,  1988,
 7    with  20  or  more  years  of  service  and before age 60, is
 8    entitled to annuity as computed above, to begin  not  earlier
 9    than  age  50 if under such age at withdrawal, reduced 1/2 of
10    1% for each full month or fractional part  thereof  that  his
11    attained age when annuity is to begin is less than 60, to the
12    end  that  the total reduction at age 50 shall be 60%, except
13    that an employee retiring at age 50 or over but less than age
14    60, having at least 30 years of service, shall not be subject
15    to the reduction in retirement annuity because of  retirement
16    below age 60.
17        An employee who withdraws on or after January 1, 1992 but
18    before  January  1,  1993,  at  age 60 or over with 5 or more
19    years of service, may elect, in lieu of  any  other  employee
20    annuity  provided  in this Section, to receive an annuity for
21    life equal to 2.20%  for  each  of  the  first  20  years  of
22    service,  and 2.40% for each year of service in excess of 20,
23    based  on  the  highest  average  annual  salary  for  any  4
24    consecutive  years  within  the  last  10  years  of  service
25    immediately preceding the date of  withdrawal.   An  employee
26    who withdraws on or after January 1, 1992, but before January
27    1,  1993,  on  or  after  attainment  of  age  55  but before
28    attainment of age 60 with 5 or  more  years  of  service,  is
29    entitled  to  elect  such  annuity,  but the annuity shall be
30    reduced 0.25% for each full month or fractional part  thereof
31    that  his  attained  age when the annuity is to begin is less
32    than age 60, to the end that the total reduction  at  age  55
33    shall  be  15%, except that an employee retiring at age 55 or
34    over but less than age  60,  having  at  least  30  years  of
 
HB5168 Enrolled            -54-                LRB9212225EGfg
 1    service,  shall not be subject to the reduction in retirement
 2    annuity because of retirement below  age  60.   This  annuity
 3    benefit  formula  shall only apply to those employees who are
 4    age 55 or over prior to January 1, 1993,  and  who  elect  to
 5    withdraw  at  age  55 or over on or after January 1, 1992 but
 6    before January 1, 1993.
 7        An employee who withdraws on or after July  1,  1996  but
 8    before August 1, 1996, at age 55 or over with 8 or more years
 9    of  service, may elect, in lieu of any other employee annuity
10    provided in this Section, to  receive  an  annuity  for  life
11    equal to 2.20% for each of the first 20 years of service, and
12    2.40%  for each year of service in excess of 20, based on the
13    highest average annual salary for  any  4  consecutive  years
14    within the last 10 years of service immediately preceding the
15    date of withdrawal, but the annuity shall be reduced by 0.25%
16    for  each  full  month  or  fractional  part thereof that the
17    annuitant's attained age when the annuity is to begin is less
18    than age 60, unless the annuitant has at least  30  years  of
19    service.
20        The  maximum  annuity  under this paragraph (a) shall not
21    exceed 70%  of  highest  average  annual  salary  for  any  5
22    consecutive  years within the last 10 years of service in the
23    case of an employee who withdraws prior to July 1, 1971,  and
24    75%   of   the  highest  average  annual  salary  for  any  4
25    consecutive  years  within  the  last  10  years  of  service
26    immediately preceding the date of  withdrawal  if  withdrawal
27    takes  place on or after July 1, 1971 and prior to January 1,
28    1988, and 80% of the highest average annual salary for any  4
29    consecutive  years  within  the  last  10  years  of  service
30    immediately  preceding  the  date of withdrawal if withdrawal
31    takes place on or after  January  1,  1988.  Fifteen  hundred
32    dollars  shall  be  considered  the  minimum amount of annual
33    salary for any year, and the maximum shall be his  salary  as
34    defined  in  this  Article,  except that for the years before
 
HB5168 Enrolled            -55-                LRB9212225EGfg
 1    1957 and subsequent to 1952 the maximum annual salary  to  be
 2    considered  shall be $6,000, and for any year before the year
 3    1953, $4,800.
 4        (b)  Any employee who withdraws on or after July 1,  1985
 5    but  prior  to  January 1, 1988, at age 60 or over with 10 or
 6    more years of service, may elect in lieu of  the  benefit  in
 7    paragraph  (a)  to receive an annuity for life equal to 2.00%
 8    for each year of service, based on the highest average annual
 9    salary for any 4 consecutive years within the last  10  years
10    of  service immediately preceding the date of withdrawal.  An
11    employee who withdraws on or after July 1, 1985, but prior to
12    January 1, 1988, with 10 or more years of service, but before
13    age 60, is entitled to  elect  such  annuity,  to  begin  not
14    earlier  than  age  55, but the annuity shall be reduced 0.5%
15    for each full month  or  fractional  part  thereof  that  his
16    attained age when the annuity is to begin is less than 60, to
17    the  end  that  the  total  reduction at age 55 shall be 30%;
18    except that an employee retiring at age 55 or over  but  less
19    than  age  60, having at least 30 years of service, shall not
20    be subject to the reduction in retirement annuity because  of
21    retirement below age 60.
22        An employee who withdraws on or after January 1, 1988, at
23    age  60  or over with 10 or more years of service, may elect,
24    in lieu of the  benefit  in  paragraph  (a),  to  receive  an
25    annuity  for  life  equal  to  2.20% for each of the first 20
26    years of service, and 2.4% for each year of service in excess
27    of 20, based on the highest average annual salary for  any  4
28    consecutive  years  within  the  last  10  years  of  service
29    immediately preceding the date of withdrawal. An employee who
30    withdraws  on or after January 1, 1988, with 10 or more years
31    of service, but before age 60,  is  entitled  to  elect  such
32    annuity,  to  begin  not earlier than age 50, but the annuity
33    shall be reduced 0.5% for each full month or fractional  part
34    thereof that his attained age when the annuity is to begin is
 
HB5168 Enrolled            -56-                LRB9212225EGfg
 1    less  than  60, to the end that the total reduction at age 50
 2    shall be 60%, except that an employee retiring at age  50  or
 3    over  but  less  than  age  60,  having  at least 30 years of
 4    service, shall not be subject to the reduction in  retirement
 5    annuity because of retirement below age 60.
 6        An  employee who withdraws on or after June 30, 2002 with
 7    10 or more years of service may elect, in lieu of  any  other
 8    retirement annuity provided under this Article, to receive an
 9    annuity  for  life, beginning no earlier than upon attainment
10    of age 50, equal to 2.40%  of  his  or  her  highest  average
11    annual  salary for any 4 consecutive years within the last 10
12    years of service immediately preceding withdrawal,  for  each
13    year  of  service.  If the employee has less than 30 years of
14    service, the annuity shall be reduced by 0.5% for  each  full
15    month  or  remaining  fraction  thereof  that  the employee's
16    attained age when the annuity is to begin is less than 60.
17        The maximum annuity under this paragraph  (b)  shall  not
18    exceed  75%  of  the  highest average annual salary for any 4
19    consecutive  years  within  the  last  10  years  of  service
20    immediately preceding the date of  withdrawal  if  withdrawal
21    occurs  prior  to  January  1,  1988,  or  80% of the highest
22    average annual salary for any 4 consecutive years within  the
23    last  10  years  of service immediately preceding the date of
24    withdrawal if withdrawal takes place on or after  January  1,
25    1988.
26        The  provisions of this paragraph (b) do not apply to any
27    former County employee receiving an annuity  from  the  fund,
28    who re-enters service as a County employee, unless he renders
29    at  least  3  years  of  additional service after the date of
30    re-entry.
31        (c)  For an employee receiving  disability  benefit,  the
32    salary  for  annuity  purposes  under paragraph (a) or (b) of
33    this Section shall, for all  periods  of  disability  benefit
34    subsequent  to  the  year  1956,  be  the amount on which his
 
HB5168 Enrolled            -57-                LRB9212225EGfg
 1    disability benefit was based.
 2        (d)  A county employee with 20 or more years of  service,
 3    whose  entire disability benefit credit period expires before
 4    attainment of age 50 (age  55  if  expiration  occurs  before
 5    January  1,  1988),  while  still  disabled  for  service  is
 6    entitled upon withdrawal to the larger of:
 7             (1)  The  minimum  annuity  provided above, assuming
 8        that he is then age  50  (age  55  if  expiration  occurs
 9        before January 1, 1988), and reducing such annuity to its
10        actuarial equivalent at his attained age on such date, or
11             (2)  the  annuity  provided from his age and service
12        and prior service annuity credits.
13        (e)  The minimum annuity provisions above do not apply to
14    any former county employee  receiving  an  annuity  from  the
15    fund,  who  re-enters service as a county employee, unless he
16    renders at least 3 years of additional service after the date
17    of re-entry.
18        (f)  Any employee in service on  July  1,  1947,  or  who
19    enters   service  thereafter  before  attaining  age  65  and
20    withdraws after age 65 with less than 10 years of service for
21    whom the annuity has been fixed under the foregoing  Sections
22    of  this  Article,  shall,  instead  of the annuity so fixed,
23    receive an annuity as follows:
24        Such amount as he could have received had the accumulated
25    amounts for  annuity  been  improved  with  interest  at  the
26    effective rate to the date of withdrawal, or to attainment of
27    age  70, whichever is earlier, and had the county contributed
28    to such earlier date for age and service annuity  the  amount
29    that  it  would  have  contributed  had he been under age 65,
30    after the date his annuity was fixed in accordance with  this
31    Article,  and  assuming  his  annuity were computed from such
32    accumulations as of his age on  such  earlier  date.  However
33    those  employees  who  before  July  1, 1953, made additional
34    contributions in accordance with this Article, the annuity so
 
HB5168 Enrolled            -58-                LRB9212225EGfg
 1    computed under this paragraph shall not  exceed  the  annuity
 2    which  would  be  payable  under the other provisions of this
 3    Section if the employee concerned was credited with 20  years
 4    of service and would qualify for annuity thereunder.
 5        (g)  Instead of the annuity provided in this or any other
 6    Section  of  this Article, an employee having attained age 65
 7    with at least 15 years of service  may  elect  to  receive  a
 8    minimum  annual  annuity  for life equal to 1% of the highest
 9    average annual salary for any 4 consecutive years within  the
10    last 10 years of service immediately preceding retirement for
11    each  year  of  service, plus the sum of $25 for each year of
12    service provided that no such minimum annual annuity  may  be
13    greater than 60% of such highest average annual salary.
14        (h)  The    annuity   is   payable   in   equal   monthly
15    installments.
16        (i)  If,  by  operation  of  law,   a   function   of   a
17    governmental unit, as defined by Section 20-107 of this Code,
18    is  transferred  in  whole  or in part to the county in which
19    this Article 9 is created as set forth in Section 9-101,  and
20    employees of the governmental unit are transferred as a class
21    to such county, the earnings credits in the retirement system
22    covering  the  governmental  unit  which  have been validated
23    under Section 20-109 of this  Code  shall  be  considered  in
24    determining the highest average annual salary for purposes of
25    this Section 9-134.
26        (j)  The  annuity  being paid to an employee annuitant on
27    July 1, 1988, shall be increased on that date by 1% for  each
28    full year that has elapsed from the date the annuity began.
29        (k)  Notwithstanding  anything  to  the  contrary in this
30    Article 9, Section 20-131 shall not apply to an employee  who
31    withdraws on or after January 1, 1988, but prior to attaining
32    age 55.  Therefore, no employee shall be entitled to elect to
33    have  the alternative formula previously set forth in Section
34    20-122 prior to the amendatory  Act  of  1975  apply  to  any
 
HB5168 Enrolled            -59-                LRB9212225EGfg
 1    annuity,  the  payment  of  which  commenced after January 1,
 2    1988, but prior to such employee's attainment of age 55.
 3    (Source: P.A. 86-272; 87-794.)

 4        (40 ILCS 5/9-134.3)
 5        Sec. 9-134.3.  Early retirement incentives.
 6        (a)  To be eligible for the  benefits  provided  in  this
 7    Section, a person must:
 8             (1)  be  a  current  contributing member of the Fund
 9        established under this Article who, on May  1,  1997  and
10        within 30 days prior to the date of retirement, is (i) in
11        active  payroll  status in a position of employment under
12        this Article or (ii) receiving disability benefits  under
13        Section  9-156  or  9-157;  or  else  be  eligible  under
14        subsection (g);
15             (2)  have  not  previously  retired  from  the Fund,
16        except as provided under subsection (g);
17             (3)  file with the Board before October 1, 1997  (or
18        the  date  specified in subsection (g), if applicable), a
19        written application requesting the benefits  provided  in
20        this Section;
21             (4)  elect  to retire under this Section on or after
22        September 1, 1997 and on or before February 28, 1998  (or
23        the  date  established  under  subsection  (d) or (g), if
24        applicable);
25             (5)  have attained age 55 on or before the  date  of
26        retirement and before February 28, 1998; and
27             (6)  have at least 10 years of creditable service in
28        the   Fund,   excluding  service  in  any  of  the  other
29        participating  systems  under  the   Retirement   Systems
30        Reciprocal  Act,  by the effective date of the retirement
31        annuity or February 28, 1998, whichever occurs first.
32        (b)  An employee who qualifies for the benefits  provided
33    under this Section shall be entitled to the following:
 
HB5168 Enrolled            -60-                LRB9212225EGfg
 1             (1)  The    employee's    retirement   annuity,   as
 2        calculated under the other provisions  of  this  Article,
 3        shall be increased at the time of retirement by an amount
 4        equal  to  1% of the employee's average annual salary for
 5        the highest 4 consecutive years within the last 10  years
 6        of  service, multiplied by the employee's number of years
 7        of service credit in this Fund up  to  a  maximum  of  10
 8        years;   except   that   the  total  retirement  annuity,
 9        including any additional benefits elected  under  Section
10        9-121.6  or 9-179.3, shall not exceed 80% of that highest
11        average annual salary.
12             (2)  If  the  employee's   retirement   annuity   is
13        calculated under Section 9-134, the employee shall not be
14        subject to the reduction in retirement annuity because of
15        retirement  below age 60 that is otherwise required under
16        that Section.
17        (c)  A person who elects to retire under  the  provisions
18    of  this  Section  thereby  relinquishes his or her right, if
19    any, to have the  retirement  annuity  calculated  under  the
20    alternative  formula  formerly set forth in Section 20-122 of
21    the Retirement Systems Reciprocal Act.
22        (d)  In  the  case  of  an   employee   whose   immediate
23    retirement  could jeopardize public safety or create hardship
24    for the employer, the deadline  for  retirement  provided  in
25    subdivision  (a)(4)  of  this  Section  may  be extended to a
26    specified date,  no  later  than  August  31,  1998,  by  the
27    employee's   department   head,  with  the  approval  of  the
28    President of the County Board.  In the case  of  an  employee
29    who  is  not  employed  by  a  department  of the County, the
30    employee's  "department  head",  for  the  purposes  of  this
31    Section, shall be a person designated by the President of the
32    County Board.
33        (e)  Notwithstanding  Section  9-161,  an  annuitant  who
34    reenters  service  under  this  Article  after  receiving   a
 
HB5168 Enrolled            -61-                LRB9212225EGfg
 1    retirement  annuity  based  on  benefits  provided under this
 2    Section thereby forfeits the right  to  continue  to  receive
 3    those  benefits  and shall have his or her retirement annuity
 4    recalculated without the benefits provided in this Section.
 5        (f)  This Section also applies to  the  Fund  established
 6    under Article 10 of this Code.
 7        (g)  A  person  who  (1)  was a participating employee on
 8    November 30, 1996, (2) was laid off on or after  December  1,
 9    1996  and  before  May  1, 1997 due to the elimination of the
10    employee's job or position, (3)  meets  the  requirements  of
11    items (3) through (6) of subsection (a), and (4) has not been
12    reinstated  as a Cook County employee since being laid off is
13    eligible for the benefits provided under this  Section.   For
14    such  a  person,  the  application required under subdivision
15    (a)(3) of this Section must be filed within 60 days after the
16    effective date of this amendatory Act  of  the  92nd  General
17    Assembly,  and  the date of retirement must be within 60 days
18    after the effective date of this amendatory Act.
19        In the case of a person eligible  under  this  subsection
20    (g)  who  began  to  receive  a retirement annuity before the
21    effective date of this amendatory Act, the annuity  shall  be
22    recalculated  to include the increase under this Section, and
23    that increase shall take effect on the first annuity  payment
24    date following the date of application.
25    (Source: P.A. 90-32, eff. 6-27-97.)

26        (40 ILCS 5/9-134.4 new)
27        Sec. 9-134.4.  Early retirement incentives.
28        (a)  To  be  eligible  for  the benefits provided in this
29    Section, a person must:
30             (1)  be a current contributing member  of  the  Fund
31        established  under  this  Article who, on January 1, 2001
32        and within 30 days prior to the date  of  retirement,  is
33        (i)  in active payroll status in a position of employment
 
HB5168 Enrolled            -62-                LRB9212225EGfg
 1        under this Article or (ii) receiving disability  benefits
 2        under Section 9-156 or 9-157;
 3             (2)  have not previously retired from the Fund;
 4             (3)  file  with  the  Board  before  March 1, 2003 a
 5        written application requesting the benefits  provided  in
 6        this Section;
 7             (4)  elect  to retire under this Section on or after
 8        November 30, 2002 and on or before March 31, 2003 (or the
 9        date established under subsection (d), if applicable);
10             (5)  have attained age 50 on or before the  date  of
11        retirement and on or before March 31, 2003; and
12             (6)  have at least 20 years of creditable service in
13        the   Fund,   excluding  service  in  any  of  the  other
14        participating  systems  under  the   Retirement   Systems
15        Reciprocal  Act,  by the effective date of the retirement
16        annuity or March 31, 2003, whichever occurs first.
17        (b)  An employee who qualifies for the benefits  provided
18    under this Section shall be entitled to the following:
19             (1)  The    employee's    retirement   annuity,   as
20        calculated under the other provisions  of  this  Article,
21        shall be increased at the time of retirement by an amount
22        equal  to  1% of the employee's average annual salary for
23        the highest 4 consecutive years within the last 10  years
24        of  service, multiplied by the employee's number of years
25        of service credit in this Fund up  to  a  maximum  of  10
26        years;   except   that   the  total  retirement  annuity,
27        including any additional benefits elected  under  Section
28        9-121.6  or 9-179.3, shall not exceed 80% of that highest
29        average annual salary.
30             (2)  If  the  employee's   retirement   annuity   is
31        calculated under Section 9-134, the employee shall not be
32        subject to the reduction in retirement annuity because of
33        retirement  below age 60 that is otherwise required under
34        that Section.
 
HB5168 Enrolled            -63-                LRB9212225EGfg
 1        (c)  A person who elects to retire under  the  provisions
 2    of  this  Section  thereby  relinquishes his or her right, if
 3    any, to have the  retirement  annuity  calculated  under  the
 4    alternative  formula  formerly set forth in Section 20-122 of
 5    the Retirement Systems Reciprocal Act.
 6        (d)  In  the  case  of  an   employee   whose   immediate
 7    retirement  could jeopardize public safety or create hardship
 8    for the employer, the deadline  for  retirement  provided  in
 9    subdivision  (a)(4)  of  this  Section  may  be extended to a
10    specified date, no later than  September  30,  2003,  by  the
11    employee's   department   head,  with  the  approval  of  the
12    President of the County Board.  In the case  of  an  employee
13    who  is  not  employed  by  a  department  of the County, the
14    employee's  "department  head",  for  the  purposes  of  this
15    Section, shall be a person designated by the President of the
16    County Board.
17        (e)  Notwithstanding  Section  9-161,  an  annuitant  who
18    reenters  service  under  this  Article  after  receiving   a
19    retirement  annuity  based  on  benefits  provided under this
20    Section thereby forfeits the right  to  continue  to  receive
21    those  benefits  and shall have his or her retirement annuity
22    recalculated without the benefits provided in this Section.
23        (f)  This Section also applies to  the  Fund  established
24    under Article 10 of this Code.

25        (40 ILCS 5/9-146.1) (from Ch. 108 1/2, par. 9-146.1)
26        Sec. 9-146.1. Minimum annuities for widows.  The widow of
27    an  employee  who  retires  from service or dies while in the
28    service  subsequent  to  June  11,  1965,  who  is  otherwise
29    eligible for widow's annuity under this Article and for  whom
30    the  amount  of  widow's  annuity  and  widow's prior service
31    annuity combined, fixed or  provided  for  such  widow  under
32    other  provisions  of  this Article 9 is less than the amount
33    hereinafter provided in this Section, shall, from  and  after
 
HB5168 Enrolled            -64-                LRB9212225EGfg
 1    the  date her otherwise provided annuity would begin, in lieu
 2    of such otherwise provided widow's and widow's prior  service
 3    annuity,  be  entitled  to  the following indicated amount of
 4    annuity:
 5        (a)  The widow, of any employee who  dies  while  in  the
 6    service  on  or after the date on which he attains the age of
 7    60 or more years with at least 20 years of service, or 10  or
 8    more  years of service if death occurs on or after attainment
 9    of age 65 and on or after January 1, 1982, shall be  entitled
10    to  an  annuity  equal  to  one-half of the amount of annuity
11    which her  deceased  husband  would  have  been  entitled  to
12    receive  had  he  withdrawn  from  the  service  on  the  day
13    immediately preceding the date of his death, conditional upon
14    such  widow  having  attained  the age of 60 or more years on
15    such date. Such amount of widow's annuity shall not, however,
16    exceed the sum of $500 a month if  death  in  service  occurs
17    before July 1, 1985.
18        If  such widow of such described employee shall not be 60
19    or more years of age  on  such  date  of  death,  the  amount
20    provided  in  the immediately preceding paragraph for a widow
21    60 or more years of age, shall, in the case of  such  younger
22    widow,  be  reduced  by 1/2 of 1 per cent for each month that
23    her then attained age is less than 60 years; except that such
24    younger widow of an employee who dies while in service on  or
25    after  July  1, 1985 with at least 30 years of service, shall
26    not be subject to the reduction in widow's annuity because of
27    her age less than 60 on the date of the employee's death.
28        (b)  The widow, of any employee who  dies  subsequent  to
29    the  date of his retirement on annuity, and who so retired on
30    or after the date on which he attained the age of 60 or  more
31    years  with at least 20 years of service, or 10 or more years
32    of service if retirement occurs on or after attainment of age
33    65 and on or after January 1, 1982, shall be entitled  to  an
34    annuity  equal to one-half of the amount of annuity which her
 
HB5168 Enrolled            -65-                LRB9212225EGfg
 1    deceased husband received as of the date of his retirement on
 2    annuity, conditional upon such widow having attained the  age
 3    of  60  or more years on the date of her husband's retirement
 4    on  annuity.  Such  amount  of  widow's  annuity  shall  not,
 5    however, exceed the sum of $500 a month if the  death  occurs
 6    before the effective date of this amendatory Act of 1991.
 7        If  such  widow of such described employee shall not have
 8    attained such age of 60 or more years on  such  date  of  her
 9    husband's  retirement  on annuity, the amount provided in the
10    immediately preceding paragraph for a widow 60 or more  years
11    of  age  on  the date of her husband's retirement on annuity,
12    shall, in the case of such then younger widow, be reduced  by
13    1/2  of  1 per cent for each month that her then attained age
14    was less than 60 years; except that such younger widow of  an
15    employee  retiring  on or after July 1, 1985 with at least 30
16    years of service, shall not be subject to  the  reduction  in
17    widow's  annuity  because of her age less than 60 on the date
18    of the employee's retirement.
19        (c)  The  foregoing  provisions   relating   to   minimum
20    annuities  for  widows  shall  not  apply to the widow of any
21    former county employee receiving an annuity from the Fund  on
22    June  11,  1965,  who re-enters service as a county employee,
23    unless such employee renders at least 3 years  of  additional
24    service after the date of re-entry.
25        (d)  An  annuity  being  paid  to  a  surviving spouse on
26    January  1,  1984  shall  be  increased  by  10%  and   shall
27    thereafter   be   paid   at  the  increased  rate  until  the
28    termination of the annuity by  death  or  other  cause.   The
29    annuity  for  a  qualifying  widow  shall not exceed $500 per
30    month.
31        (e)  The widow of any employee who dies while in  service
32    on  or  after  July 1, 1985 but prior to January 1, 1988, and
33    the widow of an employee who retires on or after July 1, 1985
34    but prior to January 1,  1988  with  at  least  10  years  of
 
HB5168 Enrolled            -66-                LRB9212225EGfg
 1    service, and the widow of an employee who retires on or after
 2    January  1,  1984  but prior to July 1, 1985 with at least 30
 3    years of service, shall be entitled to an  annuity  equal  to
 4    one-half  of the amount of annuity which her deceased husband
 5    would have received had he retired immediately prior  to  his
 6    death  or  one-half  the  amount  of  the  originally granted
 7    retirement annuity, whichever is  applicable.   Such  widow's
 8    annuity  will be reduced 0.5% for each month that the widow's
 9    attained age  is  less  than  age  60  on  the  date  of  the
10    employee's  death  in service or retirement if the employee's
11    death in service or retirement is  before  January  1,  1988;
12    except  that  such younger widow of an employee with at least
13    30 years of service shall not be subject to the reduction  in
14    widow's  annuity  because of her age less than 60 on the date
15    of the employee's death in service or retirement.
16        The widow of an employee who dies in service on or  after
17    January  1, 1988, or retires on or after January 1, 1988 with
18    at least 10 years of service, shall be entitled to an annuity
19    equal to 1/2 of the amount  of  annuity  which  her  deceased
20    husband  would have received had he retired immediately prior
21    to his death or 1/2 of the amount of the  annuity  which  her
22    deceased  husband  received  as  of  the  date  of his death,
23    whichever is  applicable.   Such  widow's  annuity  shall  be
24    reduced  0.5% for each month that the widow's attained age is
25    less than age 60 on the  date  of  the  employee's  death  if
26    employee's death in service or retirement is after January 1,
27    1988;  except  that such younger widow of an employee with at
28    least 30 years  of  service  shall  not  be  subject  to  the
29    reduction  in  widow's annuity because of her age on the date
30    of the employee's death.
31        In lieu of any other annuity provided  by  this  Article,
32    the  widow  of  an  employee  who dies in service on or after
33    January 1, 1992, or retires on or after January 1, 1992  with
34    at least 10 years of service, shall be entitled to an annuity
 
HB5168 Enrolled            -67-                LRB9212225EGfg
 1    equal  to  1/2  of  the  amount of annuity which her deceased
 2    husband would have received had he retired immediately  prior
 3    to  his  death  or 1/2 of the amount of the annuity which her
 4    deceased husband received  as  of  the  date  of  his  death,
 5    whichever  is  applicable.   Such  widow's  annuity  shall be
 6    reduced 0.5% for each month that the widow's attained age  is
 7    less  than age 55 on the date of the employee's death; except
 8    that such younger widow of an employee with at least 30 years
 9    of service shall not be subject to the reduction  in  widow's
10    annuity  because  of  her  age  on the date of the employee's
11    death.
12        In lieu of any other annuity provided  by  this  Article,
13    the  widow  of  an  employee who dies in service or withdraws
14    from service on or after January 1, 1992 but  before  January
15    1,  1993  at  age 55 or over with at least 5 but less than 10
16    years of service, shall be entitled to an  annuity  equal  to
17    half  of  the  amount  of  annuity which her deceased husband
18    would have received had he retired immediately prior  to  his
19    death or half of the amount of the annuity which her deceased
20    husband  received  as  of the date of his death, whichever is
21    applicable.  This widow's annuity shall be reduced  0.5%  for
22    each  month  that the widow's attained age is less than 60 on
23    the date of the employee's death.
24        However, in the case of an employee dying in service, the
25    amount of widow's annuity shall not be less than 10%  of  the
26    highest  average  annual  salary  for any 4 consecutive years
27    within the last 10 years of service immediately preceding the
28    date of withdrawal.  The maximum amount of annuity under this
29    paragraph shall not be limited  to  a  dollar  maximum.   The
30    provisions  of this paragraph shall not apply to the widow of
31    any former County employee receiving an annuity from the fund
32    who re-enters service  as  a  County  employee,  unless  such
33    employee renders at least 3 years of additional service after
34    the date of re-entry.
 
HB5168 Enrolled            -68-                LRB9212225EGfg
 1        (f)  An  annuity being paid to a surviving spouse on July
 2    1, 1988, shall be increased on that date by 1% for each  full
 3    year that has elapsed from the date the annuity began.
 4        (g)  In  lieu  of  any  other annuity provided under this
 5    Article, if the deceased employee was receiving a  retirement
 6    annuity  at the time of his death and that death occurs on or
 7    after January 1, 1993, the widow's annuity shall  be  50%  of
 8    the  deceased  employee's  retirement  annuity at the time of
 9    death, reduced by 0.5% for each month that the widow's age on
10    the date of death is less than 55, except that the  reduction
11    does not apply if the deceased employee had at least 30 years
12    of service.
13        (h)  In  lieu  of  any  other annuity provided under this
14    Article, the widow of an employee who dies in service  on  or
15    after  July  1,  2002 or has at least 10 years of service and
16    dies on or after July 1,  2002  while  receiving  an  annuity
17    shall  be  entitled  to a widow's annuity equal to 65% of the
18    amount of annuity  which  her  deceased  husband  would  have
19    received had he retired immediately prior to his death or 65%
20    of  the  amount  of  the  annuity  which her deceased husband
21    received  as  of  the  date  of  his  death,   whichever   is
22    applicable.   This  widow's  annuity shall be reduced by 0.5%
23    for each month that the  widow's  age  on  the  date  of  the
24    employee's death is less than 55, unless the deceased husband
25    had at least 30 years of service.
26    (Source: P.A. 86-273; 87-794; 87-1265.)

27        (40 ILCS 5/9-148) (from Ch. 108 1/2, par. 9-148)
28        Sec.  9-148.  Widows  or  wives  not entitled to annuity.
29    Except as provided in Section 9-148.1, the  following  widows
30    or wives of employees have no right to annuity from the fund:
31        (a)  The   widow  or  wife,  married  subsequent  to  the
32    effective date, of an employee who dies in service if she was
33    not married to him before he attained age 65;
 
HB5168 Enrolled            -69-                LRB9212225EGfg
 1        (b)  The  widow  or  wife,  married  subsequent  to   the
 2    effective  date,  of  an  employee who withdraws from service
 3    whether or not he enters upon annuity, and who dies while out
 4    of service, if she was not his wife while he was  in  service
 5    and before he attained age 65;
 6        (c)  The  widow  or  wife  of an employee with 10 or more
 7    years of service whose death occurs out of and after  he  has
 8    withdrawn  from  service,  and  who  has received a refund of
 9    contributions for annuity purposes;
10        (d)  The widow or wife of an employee with less  than  10
11    years  of  service  who  dies  out  of  service  after he has
12    withdrawn from service before he attained age 60.
13    (Source: P.A. 81-1536.)

14        (40 ILCS 5/9-148.1 new)
15        Sec. 9-148.1. Widow's annuity for widow married to member
16    for at least one year.  Notwithstanding Section 9-148,  if  a
17    member  was not married at the time of retirement but married
18    after retirement, that member's widow shall be entitled to  a
19    widow's  annuity  if  (1) the widow was married to the member
20    for at least the last year prior to the member's  death;  (2)
21    the  widow  is  otherwise eligible for a widow's annuity; and
22    (3) the widow repays to the Fund (i) an amount equal  to  the
23    amount  of  any  refund  paid  to  the  member at the time of
24    retirement pursuant  to  Section  9-165  plus  (ii)  interest
25    thereon  from  the  date  of  the  refund  until  the time of
26    repayment at the rate of 6% per year.

27        (40 ILCS 5/9-163) (from Ch. 108 1/2, par. 9-163)
28        Sec. 9-163. Restoration of rights.  An employee  who  has
29    withdrawn  as  a  refund  the  amounts  credited  for annuity
30    purposes, and who re-enters service and  serves  for  periods
31    comprising at least 2 years after the date of the last refund
32    paid  to  him, may have his annuity rights restored by making
 
HB5168 Enrolled            -70-                LRB9212225EGfg
 1    application to the board in  writing  for  the  privilege  of
 2    reinstating  such rights and by compliance with the following
 3    provisions:
 4             (a)  The employee shall repay in full  to  the  fund
 5        while  in  service  all  refunds  received, together with
 6        interest at the effective rate from the application  date
 7        of such refund or refunds to the date of repayment.
 8             (b)  If  payment  is  not  made in a single sum, the
 9        repayment may be made in installments by deductions  from
10        salary  or  otherwise in such amounts as the employee may
11        elect  to  pay,  with  interest  at  the  effective  rate
12        accruing on unpaid balances.
13             (c)  If the employee withdraws from service or  dies
14        in  service  before full repayment is made, or during the
15        required return to service, the amounts repaid, including
16        interest repaid but without further  interest,  shall  be
17        refunded in accordance with the refund provisions of this
18        Article.
19        For  an  employee  who  applies  to the Fund to reinstate
20    credit and repay a refund between January 1, 1993  and  March
21    1,  1993,  the  2  year  minimum period of subsequent service
22    required under item (a)  shall  be  instead  a  period  of  6
23    months.
24        A  person  who  establishes  service credit under Section
25    9-121.16 may, at the same time, reinstate credit in this Fund
26    and  repay  a   refund   without   a   return   to   service,
27    notwithstanding the other provisions of this Section.
28    (Source: P.A. 87-1265.)

29        (40 ILCS 5/9-179.3) (from Ch. 108 1/2, par. 9-179.3)
30        Sec.  9-179.3.   Optional plan of additional benefits and
31    contributions.
32        (a)  While this  plan  is  in  effect,  an  employee  may
33    establish  additional optional credit for additional optional
 
HB5168 Enrolled            -71-                LRB9212225EGfg
 1    benefits  by  electing  in  writing  at  any  time  to   make
 2    additional   optional   contributions.    The   employee  may
 3    discontinue making the additional optional  contributions  at
 4    any time by notifying the fund in writing.
 5        (b)  Additional optional contributions for the additional
 6    optional benefits shall be as follows:
 7             (1)  For  service  after  the  option is elected, an
 8        additional  contribution  of  3%  of  salary   shall   be
 9        contributed  to  the fund on the same basis and under the
10        same conditions as contributions required under  Sections
11        9-170 and 9-176.
12             (2)  For  service  before  the option is elected, an
13        additional contribution of  3%  of  the  salary  for  the
14        applicable  period  of  service,  plus  interest  at  the
15        effective  rate  from  the date of service to the date of
16        payment.  All payments for past service must be  paid  in
17        full  before  credit  is  given.  No  additional optional
18        contributions may be made for any period of  service  for
19        which  credit has been previously forfeited by acceptance
20        of a refund, unless the refund is  repaid  in  full  with
21        interest at the effective rate from the date of refund to
22        the date of repayment.
23        (c)  Additional  optional  benefits  shall accrue for all
24    periods   of   eligible   service   for   which    additional
25    contributions are paid in full.  The additional benefit shall
26    consist  of  an  additional  1%  for each year of service for
27    which optional contributions have been  paid,  based  on  the
28    highest  average  annual  salary  for any 4 consecutive years
29    within the last 10 years of service immediately preceding the
30    date of withdrawal, to be added to  the  employee  retirement
31    annuity  benefits  as  otherwise computed under this Article.
32    The calculation of these additional benefits shall be subject
33    to  the  same  terms  and  conditions  as  are  used  in  the
34    calculation of retirement annuity under Section  9-134.   The
 
HB5168 Enrolled            -72-                LRB9212225EGfg
 1    additional  benefit  shall  be included in the calculation of
 2    the  automatic  annual  increase  in  annuity,  and  in   the
 3    calculation of widow's annuity, where applicable.  However no
 4    additional  benefits  will  be  granted which produce a total
 5    annuity greater than the applicable maximum  established  for
 6    that type of annuity in this Article, and additional benefits
 7    shall  not  apply  to  any  benefit  computed  under  Section
 8    9-128.1.
 9        (d)  Refunds  of  additional optional contributions shall
10    be made on the same basis and under the  same  conditions  as
11    provided  under  Sections  9-164,  9-166 and 9-167.  Interest
12    shall be credited at the effective rate on the same basis and
13    under the same conditions as for other contributions.
14        (e)  Optional contributions shall be accounted for  in  a
15    separate Optional Contribution Reserve.
16        (f)  The tax levy, computed under Section 9-169, shall be
17    based  on  employee  contributions  including  the  amount of
18    optional additional employee contributions.
19        (g)  Service eligible under this Section may include only
20    service as an employee of the County as  defined  in  Section
21    9-108,  and  subject to Sections 9-219 and 9-220.  No service
22    granted under Section 9-121.1, 9-121.4 or  9-179.2  shall  be
23    eligible  for  optional  service credit.  No optional service
24    credit may be established for any military  service,  or  for
25    any  service  under any other Article of this Code.  Optional
26    service  credit  may  be  established  for  any   period   of
27    disability  paid  from  this  fund,  if  the  employee  makes
28    additional   optional   contributions  for  such  periods  of
29    disability.
30        (h)  This plan of  optional  benefits  and  contributions
31    shall  not  apply  to any former county employee receiving an
32    annuity from the fund, who  re-enters  service  as  a  County
33    employee,  unless  he  renders at least 3 years of additional
34    service after the date of re-entry.
 
HB5168 Enrolled            -73-                LRB9212225EGfg
 1        (i)  The  effective  date  of  the   optional   plan   of
 2    additional  benefits and contributions shall be July 1, 1985,
 3    or the date upon which approval is received from the Internal
 4    Revenue Service, whichever is later.
 5        (j)  This plan of additional benefits  and  contributions
 6    shall  expire July 1, 2005 2002.  No additional contributions
 7    may be made after that date, and no additional benefits  will
 8    accrue after that date.
 9    (Source: P.A. 90-32, eff. 6-27-97; 90-460, eff. 8-17-97.)

10        (40 ILCS 5/9-219) (from Ch. 108 1/2, par. 9-219)
11        Sec. 9-219. Computation of service.
12        (1)  In  computing  the  term  of  service of an employee
13    prior to the effective date, the entire period  beginning  on
14    the  date he was first appointed and ending on the day before
15    the effective date,  except  any  intervening  period  during
16    which  he  was separated by withdrawal from service, shall be
17    counted for all purposes of this Article.
18        (2)  In computing the term of service of any employee  on
19    or  after  the  effective date, the following periods of time
20    shall be counted as periods of service for age  and  service,
21    widow's and child's annuity purposes:
22             (a)  The  time  during which he performed the duties
23        of his position.
24             (b)  Vacations, leaves of absence with whole or part
25        pay, and leaves of absence without pay not longer than 90
26        days.
27             (c)  For an employee who is a  member  of  a  county
28        police  department  or  a  correctional  officer with the
29        county department  of  corrections,  approved  leaves  of
30        absence without pay during which the employee serves as a
31        full-time   officer  or  employee  head  of  an  employee
32        association, the membership of which  consists  of  other
33        participants  in  the Fund police officers, provided that
 
HB5168 Enrolled            -74-                LRB9212225EGfg
 1        the employee contributes to the Fund (1) the amount  that
 2        he  would  have  contributed  had  he  remained an active
 3        employee member of the county police  department  in  the
 4        position he occupied at the time the leave of absence was
 5        granted,   (2)   an   amount   calculated  by  the  Board
 6        representing  employer  contributions,  and  (3)  regular
 7        interest thereon from the date of service to the date  of
 8        payment.   However,  if  the  employee's  application  to
 9        establish credit under this subsection is received by the
10        Fund  on  or  after July 1, 2002 and before July 1, 2003,
11        the amount representing employer contributions  specified
12        in item (2) shall be waived.
13             For  a  former  member of a county police department
14        who has received a refund under  Section  9-164,  periods
15        during  which  the employee serves as head of an employee
16        association, the membership of which  consists  of  other
17        police  officers,  provided that the employee contributes
18        to the Fund (1) the amount that he would have contributed
19        had he remained an active member  of  the  county  police
20        department  in  the  position  he occupied at the time he
21        left service, (2)  an  amount  calculated  by  the  Board
22        representing  employer  contributions,  and  (3)  regular
23        interest  thereon from the date of service to the date of
24        payment.  However, if the former  member  of  the  county
25        police department retires on or after January 1, 1993 but
26        no  later  than  March  1,  1993, the amount representing
27        employer contributions specified in  item  (2)  shall  be
28        waived.
29             (d)  Any  period of disability for which he received
30        disability benefit or whole or part pay.
31             (e)  Accumulated vacation or other time for which an
32        employee  who  retires  on  or  after  November  1,  1990
33        receives a lump sum payment at the  time  of  retirement,
34        provided  that contributions were made to the fund at the
 
HB5168 Enrolled            -75-                LRB9212225EGfg
 1        time such lump sum payment  was  received.   The  service
 2        granted  for  the  lump  sum payment shall not change the
 3        employee's date of withdrawal for computing the effective
 4        date of the annuity.
 5             (f)  An employee  may  receive  service  credit  for
 6        annuity  purposes  for  accumulated  sick leave as of the
 7        date of the employee's withdrawal from  service,  not  to
 8        exceed  a  total of 180 days, provided that the amount of
 9        such accumulated sick leave is certified  by  the  County
10        Comptroller  to the Board and the employee pays an amount
11        equal to 8.5%  (9%  for  members  of  the  County  Police
12        Department  who  are eligible to receive an annuity under
13        Section 9-128.1) of the amount that would have been  paid
14        had   such  accumulated  sick  leave  been  paid  at  the
15        employee's final rate of salary.  Such payment  shall  be
16        made  within  30  days  after  the date of withdrawal and
17        prior to receipt of the first annuity check.  The service
18        credit granted for such accumulated sick leave shall  not
19        change  the employee's date of withdrawal for the purpose
20        of computing the effective date of the annuity.
21        (3)  In computing the term of service of an  employee  on
22    or  after  the effective date for ordinary disability benefit
23    purposes, the following periods of time shall be  counted  as
24    periods of service:
25             (a)  Unless  otherwise  specified  in Section 9-157,
26        the time during which he  performed  the  duties  of  his
27        position.
28             (b)  Paid vacations and leaves of absence with whole
29        or part pay.
30             (c)  Any   period   for   which   he  received  duty
31        disability benefit.
32             (d)  Any period of disability for which he  received
33        whole or part pay.
34        (4)  For   an  employee  who  on  January  1,  1958,  was
 
HB5168 Enrolled            -76-                LRB9212225EGfg
 1    transferred by Act of the  70th  General  Assembly  from  his
 2    position  in  a  department of welfare of any city located in
 3    the county in which this Article is in force and effect to  a
 4    similar  position  in  a  department  of such county, service
 5    shall also be credited for ordinary  disability  benefit  and
 6    child's  annuity  for  such  period  of department of welfare
 7    service during  which  period  he  was  a  contributor  to  a
 8    statutory annuity and benefit fund in such city and for which
 9    purposes  service  credit  would otherwise not be credited by
10    virtue of such involuntary transfer.
11        (5)  An employee described in subsection (e)  of  Section
12    9-108  shall  receive credit for child's annuity and ordinary
13    disability benefit for the period of time for  which  he  was
14    credited   with  service  in  the  fund  from  which  he  was
15    involuntarily separated  through  class  or  group  transfer;
16    provided,  that no such credit shall be allowed to the extent
17    that it results in a duplication of credits or benefits,  and
18    neither  shall  such  credit be allowed to the extent that it
19    was or may be forfeited by the application for and acceptance
20    of a refund  from  the  fund  from  which  the  employee  was
21    transferred.
22        (6)  Overtime  or  extra service shall not be included in
23    computing service.  Not more than 1 year of service shall  be
24    allowed for service rendered during any calendar year.
25    (Source: P.A. 86-1488; 87-794; 87-1265.)

26        (40 ILCS 5/11-125.8)
27        Sec. 11-125.8. Service as police officer, firefighter, or
28    teacher.
29        (a)  Service  rendered by an employee as a police officer
30    and member of the regularly constituted police department  of
31    the  city, or as a firefighter and regular member of the paid
32    fire department of the city, or as a teacher  in  the  public
33    school  system in the city shall be counted, for the purposes
 
HB5168 Enrolled            -77-                LRB9212225EGfg
 1    of this Article, as service rendered as an  employee  of  the
 2    city.  Salary received for any such service shall be treated,
 3    for  the purposes of this Article, as salary received for the
 4    performance of duty as an employee.
 5        (b) Credit shall be granted under subsection (a) only  if
 6    (1)  the  employee  pays  to  the  Fund  prior  to his or her
 7    separation from service  an  amount  equal  to  the  employee
 8    contributions  that would have been payable for that service,
 9    based on the salary actually received, plus interest  at  the
10    effective  rate,  and  (2)  the  employee  has terminated any
11    credit for that service  earned  in  any  other  annuity  and
12    benefit fund or pension fund in operation in the city for the
13    benefit  of  police officers, firefighters, or teachers.  The
14    amount transferred to the Fund  under  item  (1)  of  Section
15    5-233.1,  if any, shall be credited against the contributions
16    required under this subsection.
17    (Source: P.A. 90-31, eff. 6-27-97.)

18        (40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
19        Sec. 11-134.  Minimum annuities.
20        (a)  An employee whose withdrawal occurs  after  July  1,
21    1957 at age 60 or over, with 20 or more years of service, (as
22    service  is  defined or computed in Section 11-216), for whom
23    the age and service and prior  service  annuity  combined  is
24    less  than the amount stated in this Section, shall, from and
25    after the date  of  withdrawal,  in  lieu  of  all  annuities
26    otherwise provided in this Article, be entitled to receive an
27    annuity  for  life of an amount equal to 1 2/3% for each year
28    of service, of the highest average annual salary  for  any  5
29    consecutive  years  within  the  last  10  years  of  service
30    immediately  preceding the date of withdrawal; provided, that
31    in the case of any employee who withdraws on or after July 1,
32    1971, such employee age 60 or over with 20 or more  years  of
33    service,  shall be entitled to instead receive an annuity for
 
HB5168 Enrolled            -78-                LRB9212225EGfg
 1    life equal to 1.67%  for  each  of  the  first  10  years  of
 2    service;  1.90%  for  each  of  the next 10 years of service;
 3    2.10% for each year of  service  in  excess  of  20  but  not
 4    exceeding 30; and 2.30% for each year of service in excess of
 5    30,  based  on  the  highest  average annual salary for any 4
 6    consecutive  years  within  the  last  10  years  of  service
 7    immediately preceding the date of withdrawal.
 8        An employee who withdraws after July 1, 1957  and  before
 9    January 1, 1988, with 20 or more years of service, before age
10    60,  shall  be  entitled  to an annuity, to begin not earlier
11    than age 55, if under such age at withdrawal, as computed  in
12    the  last  preceding paragraph, reduced 0.25% if the employee
13    was born before January 1, 1936, or 0.5% if the employee  was
14    born  on  or  after  January  1, 1936, for each full month or
15    fractional part thereof  that  his  attained  age  when  such
16    annuity is to begin is less than 60.
17        Any  employee  born  before January 1, 1936 who withdraws
18    with 20 or more years of service, and any employee with 20 or
19    more years of service who withdraws on or  after  January  1,
20    1988,  may  elect  to  receive, in lieu of any other employee
21    annuity provided in this Section, an annuity for  life  equal
22    to 1.80% for each of the first 10 years of service, 2.00% for
23    each  of the next 10 years of service, 2.20% for each year of
24    service in excess of 20, but not exceeding 30, and 2.40%  for
25    each  year of service in excess of 30, of the highest average
26    annual salary for any 4 consecutive years within the last  10
27    years   of   service   immediately   preceding  the  date  of
28    withdrawal, to begin not earlier than upon attained age of 55
29    years, if under such age at  withdrawal,  reduced  0.25%  for
30    each  full month or fractional part thereof that his attained
31    age when annuity is to begin is less than 60; except that  an
32    employee  retiring  on or after January 1, 1988, at age 55 or
33    over but less than age  60,  having  at  least  35  years  of
34    service, or an employee retiring on or after July 1, 1990, at
 
HB5168 Enrolled            -79-                LRB9212225EGfg
 1    age 55 or over but less than age 60, having at least 30 years
 2    of service, or an employee retiring on or after the effective
 3    date  of  this  amendatory Act of 1997, at age 55 or over but
 4    less than age 60, having at least 25 years of service,  shall
 5    not be subject to the reduction in retirement annuity because
 6    of retirement below age 60.
 7        However,  in  the  case  of an employee who retired on or
 8    after January 1, 1985 but before January 1, 1988, at  age  55
 9    or  older  and with at least 35 years of service, and who was
10    subject  under  this  subsection  (a)  to  the  reduction  in
11    retirement annuity because of retirement below age  60,  that
12    reduction  shall  cease  to be effective January 1, 1991, and
13    the retirement annuity shall be recalculated accordingly.
14        Any employee who withdraws on or after July 1, 1990, with
15    20 or more years of service, may elect to receive, in lieu of
16    any other employee  annuity  provided  in  this  Section,  an
17    annuity  for  life equal to 2.20% for each year of service if
18    withdrawal is before 60 days after the effective date of this
19    amendatory Act of the 92nd General  Assembly,  or  2.40%  for
20    each  year  of  service  if  withdrawal  is 60 days after the
21    effective date of this amendatory Act  of  the  92nd  General
22    Assembly  or  later, of the highest average annual salary for
23    any 4 consecutive years within the last 10 years  of  service
24    immediately  preceding  the  date of withdrawal, to begin not
25    earlier than upon attained age of 55 years, if under such age
26    at  withdrawal,  reduced  0.25%  for  each  full   month   or
27    fractional part thereof that his attained age when annuity is
28    to begin is less than 60; except that an employee retiring at
29    age 55 or over but less than age 60, having at least 30 years
30    of  service,  shall  not  be  subject  to  the  reduction  in
31    retirement annuity because of retirement below age 60.
32        Any employee who withdraws on or after the effective date
33    of  this  amendatory  Act  of  1997  with 20 or more years of
34    service may elect to receive, in lieu of any  other  employee
 
HB5168 Enrolled            -80-                LRB9212225EGfg
 1    annuity  provided  in this Section, an annuity for life equal
 2    to 2.20%, for each year of service if withdrawal is before 60
 3    days after the effective date of this amendatory Act  of  the
 4    92nd  General  Assembly, or 2.40% for each year of service if
 5    withdrawal is 60  days  after  the  effective  date  of  this
 6    amendatory  Act of the 92nd General Assembly or later, of the
 7    highest average annual salary for  any  4  consecutive  years
 8    within the last 10 years of service immediately preceding the
 9    date of withdrawal, to begin not earlier than upon attainment
10    of  age  55  (age 50 if the employee has at least 30 years of
11    service), reduced 0.25% for  each  full  month  or  remaining
12    fractional part thereof that the employee's attained age when
13    annuity  is to begin is less than 60; except that an employee
14    retiring at age 50 or over with at least 30 years of  service
15    or  at age 55 or over with at least 25 years of service shall
16    not be subject to the reduction in retirement annuity because
17    of retirement below age 60.
18        The maximum annuity payable under this paragraph  (a)  of
19    this  Section  shall not exceed 70% of highest average annual
20    salary in the case of an employee who withdraws prior to July
21    1, 1971, 75% if withdrawal takes place on or  after  July  1,
22    1971,  and  prior to 60 days after the effective date of this
23    amendatory Act of  the  92nd  General  Assembly,  or  80%  if
24    withdrawal  is  60  days  after  the  effective  date of this
25    amendatory Act of the 92nd General Assembly or later. For the
26    purpose of the minimum annuity provided  in  said  paragraphs
27    $1,500  shall be considered the minimum annual salary for any
28    year; and the maximum annual salary to be considered for  the
29    computation  of  such  annuity  shall  be $4,800 for any year
30    prior to 1953, $6,000 for the years 1953 to 1956,  inclusive,
31    and  the  actual  annual salary, as salary is defined in this
32    Article, for any year thereafter.
33        (b)  For an employee receiving  disability  benefit,  his
34    salary for annuity purposes under this Section shall, for all
 
HB5168 Enrolled            -81-                LRB9212225EGfg
 1    periods of disability benefit subsequent to the year 1956, be
 2    the amount on which his disability benefit was based.
 3        (c)  An  employee with 20 or more years of service, whose
 4    entire disability benefit  credit  period  expires  prior  to
 5    attainment  of age 55 while still disabled for service, shall
 6    be entitled upon withdrawal to the larger of (1) the  minimum
 7    annuity  provided  above assuming that he is then age 55, and
 8    reducing such annuity to  its  actuarial  equivalent  at  his
 9    attained  age  on such date, or (2) the annuity provided from
10    his age and service and prior service annuity credits.
11        (d)  The minimum annuity provisions  as  aforesaid  shall
12    not  apply  to  any former employee receiving an annuity from
13    the fund, and who re-enters service as an employee, unless he
14    renders at least 3 years of additional service after the date
15    of re-entry.
16        (e)  An employee in service  on  July  1,  1947,  or  who
17    became  a contributor after July 1, 1947 and prior to July 1,
18    1950, or who shall become a contributor  to  the  fund  after
19    July  1,  1950  prior  to attainment of age 70, who withdraws
20    after age 65 with less than 20 years of service, for whom the
21    annuity has been fixed under the foregoing Sections  of  this
22    Article  shall,  in  lieu of the annuity so fixed, receive an
23    annuity as follows:
24        Such amount as he could have received had the accumulated
25    amounts for  annuity  been  improved  with  interest  at  the
26    effective   rate  to  the  date  of  his  withdrawal,  or  to
27    attainment of age 70, whichever is earlier, and had the  city
28    contributed  to such earlier date for age and service annuity
29    the amount that would have been contributed had he been under
30    age 65, after the date his annuity was  fixed  in  accordance
31    with  this  Article,  and  assuming his annuity were computed
32    from such accumulations as of his age on such  earlier  date.
33    The  annuity  so  computed shall not exceed the annuity which
34    would be payable under the other provisions of  this  Section
 
HB5168 Enrolled            -82-                LRB9212225EGfg
 1    if  the  employee  was  credited with 20 years of service and
 2    would qualify for annuity thereunder.
 3        (f)  In lieu of the annuity provided in this  or  in  any
 4    other  Section  of  this Article, an employee having attained
 5    age 65 with at least 15 years of service who  withdraws  from
 6    service  on  or after July 1, 1971 and whose annuity computed
 7    under other provisions of  this  Article  is  less  than  the
 8    amount  provided  under  this  paragraph shall be entitled to
 9    receive a minimum annual annuity for life equal to 1% of  the
10    highest  average  annual  salary  for any 4 consecutive years
11    within the last 10 years  of  service  immediately  preceding
12    retirement  for  each year of his service plus the sum of $25
13    for each year of  service.  Such  annual  annuity  shall  not
14    exceed  the maximum percentages stated under paragraph (a) of
15    this Section of such highest average annual salary.
16        (f-1)  Instead of any other retirement  annuity  provided
17    in  this  Article,  an  employee who has at least 10 years of
18    service and withdraws from service on  or  after  January  1,
19    1999  may  elect  to  receive  a retirement annuity for life,
20    beginning no earlier than upon attainment of age 60, equal to
21    2.2% if withdrawal is before 60 days after the effective date
22    of this amendatory Act of the 92nd General Assembly  or  2.4%
23    for  each  year of service if withdrawal is 60 days after the
24    effective date of this amendatory Act  of  the  92nd  General
25    Assembly  or  later, of final average salary for each year of
26    service, subject to a maximum of 75% of final average  salary
27    if  withdrawal  is before 60 days after the effective date of
28    this amendatory Act of the 92nd General Assembly, or  80%  if
29    withdrawal  is  60  days  after  the  effective  date of this
30    amendatory Act of the 92nd General Assembly or later. For the
31    purpose of calculating this annuity, "final  average  salary"
32    means the highest average annual salary for any 4 consecutive
33    years in the last 10 years of service.
34        (g)  Any  annuity payable under the preceding subsections
 
HB5168 Enrolled            -83-                LRB9212225EGfg
 1    of this  Section  11-134  shall  be  paid  in  equal  monthly
 2    installments.
 3        (h)  The  amendatory  provisions  of  part (a) and (f) of
 4    this Section shall be effective July 1, 1971 and apply in the
 5    case of every qualifying employee  withdrawing  on  or  after
 6    July 1, 1971.
 7        (i)  The  amendatory provisions of this amendatory Act of
 8    1985  relating  to  the  discount  of  annuity   because   of
 9    retirement  prior  to attainment of age 60 and increasing the
10    retirement formula for those born  before  January  1,  1936,
11    shall  apply  only  to qualifying employees withdrawing on or
12    after August 16, 1985.
13        (j)  Beginning on January 1, 1999, the minimum amount  of
14    employee's  annuity  shall be $850 per month for life for the
15    following classes of employees, without regard  to  the  fact
16    that  withdrawal occurred prior to the effective date of this
17    amendatory Act of 1998:
18             (1)  any employee annuitant alive  and  receiving  a
19        life annuity on the effective date of this amendatory Act
20        of 1998, except a reciprocal annuity;
21             (2)  any  employee  annuitant  alive and receiving a
22        term annuity on the effective date of this amendatory Act
23        of 1998, except a reciprocal annuity;
24             (3)  any employee annuitant alive  and  receiving  a
25        reciprocal   annuity   on  the  effective  date  of  this
26        amendatory Act of 1998, whose service in this fund is  at
27        least 5 years;
28             (4)  any employee annuitant withdrawing after age 60
29        on  or after the effective date of this amendatory Act of
30        1998, with at least 10 years of service in this fund.
31        The increases granted under items (1),  (2)  and  (3)  of
32    this subsection (j) shall not be limited by any other Section
33    of this Act.
34    (Source:  P.A.  90-32,  eff.  6-27-97;  90-511, eff. 8-22-97;
 
HB5168 Enrolled            -84-                LRB9212225EGfg
 1    90-766, eff. 8-14-98.)

 2        (40 ILCS 5/11-134.1) (from Ch. 108 1/2, par. 11-134.1)
 3        Sec. 11-134.1. Automatic increase in annuity.
 4        (a)  An employee who  retired  or  retires  from  service
 5    after  December  31, 1963, and before January 1, 1987, having
 6    attained age 60 or more, shall, in the month  of  January  of
 7    the year following the year in which the first anniversary of
 8    retirement  occurs,  have  the  amount  of his then fixed and
 9    payable monthly annuity increased by 1 1/2%, and  such  first
10    fixed annuity as granted at retirement increased by a further
11    1  1/2%  in  January  of each year thereafter. Beginning with
12    January of the year 1972, such increases shall be at the rate
13    of 2% in lieu of the aforesaid specified  1  1/2%.  Beginning
14    January,  1984,  such  increases  shall be at the rate of 3%.
15    Beginning in January of 1999, such increases shall be at  the
16    rate   of  3%  of  the  currently  payable  monthly  annuity,
17    including  any  increases  previously  granted   under   this
18    Article.   An  employee who retires on annuity after December
19    31, 1963 and before January 1, 1987, but  prior  to  age  60,
20    shall  receive  such  increases beginning with January of the
21    year immediately following the year in which he  attains  the
22    age of 60 years.
23        An  employee who retires from service on or after January
24    1, 1987 shall, upon the first annuity payment date  following
25    the  first anniversary of the date of retirement, or upon the
26    first annuity payment date following attainment  of  age  60,
27    whichever  occurs  later,  have  his  then  fixed and payable
28    monthly annuity increased by 3%, and such  annuity  shall  be
29    increased  by  an additional 3% of the original fixed annuity
30    on the same date each year thereafter.  Beginning in  January
31    of  1999,  such  increases  shall be at the rate of 3% of the
32    currently payable monthly annuity,  including  any  increases
33    previously granted under this Article.
 
HB5168 Enrolled            -85-                LRB9212225EGfg
 1        (a-5)  Notwithstanding  the provisions of subsection (a),
 2    upon the first annuity payment date following (1)  the  third
 3    anniversary  of  retirement, (2) the attainment of age 53, or
 4    (3) the date  60  days  after  the  effective  date  of  this
 5    amendatory Act of the 92nd General Assembly, whichever occurs
 6    latest,  the  monthly  pension  of an employee who retires on
 7    annuity prior to  the  attainment  of  age  60  who  has  not
 8    received  an increase under subsection (a) shall be increased
 9    by 3%, and such annuity shall be increased by  an  additional
10    3%  of  the  current  payable monthly annuity, including such
11    increases previously granted under this Article, on the  same
12    date  each year thereafter. The increases provided under this
13    subsection  are  in  lieu  of  the  increases   provided   in
14    subsection (a).
15        (b)  The  foregoing  provision  is  not  applicable to an
16    employee retiring and receiving a term annuity, as defined in
17    this Article, nor to any  otherwise  qualified  employee  who
18    retires  before he shall have made employee contributions (at
19    the 1/2 of 1% rate as hereinafter provided) for the  purposes
20    of  this  additional annuity for not less than the equivalent
21    of  one  full  year.  Such  employee,  however,  shall   make
22    arrangement  to  pay  to the fund a balance of such 1/2 of 1%
23    contributions, based on his final salary, as will bring  such
24    1/2  of  1%  contributions, computed without interest, to the
25    equivalent of or completion of one year's contributions.
26        Beginning with the month of January, 1964, each  employee
27    shall  contribute  by means of salary deductions 1/2 of 1% of
28    each salary payment, concurrently with and in addition to the
29    employee contributions otherwise made for annuity purposes.
30        Each  such  additional  employee  contribution  shall  be
31    credited to an account in the prior service annuity  reserve,
32    to  be  used, together with city contributions, to defray the
33    cost of the specified annuity increments. Any balance  as  of
34    the  beginning of each calendar year existing in such account
 
HB5168 Enrolled            -86-                LRB9212225EGfg
 1    shall be credited with interest at the rate of 3% per annum.
 2        Such employee  contributions  shall  not  be  subject  to
 3    refund,  except  to  an employee who resigns or is discharged
 4    and applies for refund under this Article, and also in  cases
 5    where a term annuity becomes payable.
 6        In   such  cases  the  employee  contributions  shall  be
 7    refunded  him,  without  interest,   and   charged   to   the
 8    aforementioned account in the prior service annuity reserve.
 9    (Source: P.A. 90-766, eff. 8-14-98.)

10        (40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
11        Sec. 11-145.1.  Minimum annuities for widows.
12        The  widow  otherwise  eligible for widow's annuity under
13    other Sections of this Article 11, of an employee hereinafter
14    described, who retires from service  or  dies  while  in  the
15    service  subsequent  to the effective date of this amendatory
16    provision, and for which widow the amount of widow's  annuity
17    and widow's prior service annuity combined, fixed or provided
18    for  such  widow under other provisions of said Article 11 is
19    less than the amount hereinafter provided  in  this  section,
20    shall, from and after the date her otherwise provided annuity
21    would  begin,  in lieu of such otherwise provided widow's and
22    widow's prior service annuity, be entitled to  the  following
23    indicated amount of annuity:
24        (a)  The  widow of any employee who dies while in service
25    on or after the date on which he attains age 60 if the  death
26    occurs  before July 1, 1990, or on or after the date on which
27    he attains age 55 if the death occurs on  or  after  July  1,
28    1990,  with  at least 20 years of service, or on or after the
29    date on which he attains age 50 if the  death  occurs  on  or
30    after  the effective date of this amendatory Act of 1997 with
31    at least 30 years of service, shall be entitled to an annuity
32    equal to one-half of the amount of annuity which her deceased
33    husband would have been entitled to receive had he  withdrawn
 
HB5168 Enrolled            -87-                LRB9212225EGfg
 1    from the service on the day immediately preceding the date of
 2    his death, conditional upon such widow having attained age 60
 3    on  or  before  such  date if the death occurs before July 1,
 4    1990, or age 55 if the death occurs on or after July 1, 1990,
 5    or age 50 if the death occurs on or after January 1, 1998 and
 6    the employee is age 50 or over with  at  least  30  years  of
 7    service  or age 55 or over with at least 25 years of service.
 8    Except as provided in subsection  (j),  the  widow's  annuity
 9    shall  not,  however,  exceed  the sum of $500 a month if the
10    employee's death in service occurs before January  23,  1987.
11    The  widow's annuity shall not be limited to a maximum dollar
12    amount if the employee's death in service occurs on or  after
13    January 23, 1987.
14        If  the employee dies in service before July 1, 1990, and
15    if such widow of such described employee shall not be  60  or
16    more  years of age on such date of death, the amount provided
17    in the immediately preceding paragraph for a widow 60 or more
18    years of age, shall, in the case of such  younger  widow,  be
19    reduced by 0.25% for each month that her then attained age is
20    less than 60 years if the employee was born before January 1,
21    1936, or dies in service on or after January 1, 1988, or 0.5%
22    for  each  month  that  her then attained age is less than 60
23    years if the employee was born on or after  January  1,  1936
24    and dies in service before January 1, 1988.
25        If the employee dies in service on or after July 1, 1990,
26    and  if  the widow of the employee has not attained age 55 on
27    or before the employee's date of death, the amount  otherwise
28    provided in this subsection (a) shall be reduced by 0.25% for
29    each  month that her then attained age is less than 55 years;
30    except that if the employee  dies  in  service  on  or  after
31    January  1,  1998 at age 50 or over with at least 30 years of
32    service or at age 55 or  over  with  at  least  25  years  of
33    service,  there  shall be no reduction due to the widow's age
34    if she has attained age 50 on or before the  employee's  date
 
HB5168 Enrolled            -88-                LRB9212225EGfg
 1    of  death,  and  if  the  widow has not attained age 50 on or
 2    before the employee's date  of  death  the  amount  otherwise
 3    provided in this subsection (a) shall be reduced by 0.25% for
 4    each month that her then attained age is less than 50 years.
 5        (b)  The widow of any employee who dies subsequent to the
 6    date  of  his retirement on annuity, and who so retired on or
 7    after the date on which he  attained  age  60  if  retirement
 8    occurs  before July 1, 1990, or on or after the date on which
 9    he attained age 55 if retirement occurs on or after  July  1,
10    1990,  with  at least 20 years of service, or on or after the
11    date on which he attained age 50 if the retirement occurs  on
12    or  after  the  effective date of this amendatory Act of 1997
13    with at least 30 years of service, shall be  entitled  to  an
14    annuity  equal to one-half of the amount of annuity which her
15    deceased husband received as of the date of his retirement on
16    annuity, conditional upon such widow having attained  age  60
17    on  or before the date of her husband's retirement on annuity
18    if retirement occurs before  July  1,  1990,  or  age  55  if
19    retirement  occurs on or after July 1, 1990, or age 50 if the
20    retirement on annuity occurs on or after January 1, 1998  and
21    the  employee  is  age  50  or over with at least 30 years of
22    service or age 55 or over with at least 25 years of service.
23    Except as provided in subsection (j),  this  widow's  annuity
24    shall  not,  however,  exceed  the sum of $500 a month if the
25    employee's death occurs before January 23, 1987.  The widow's
26    annuity shall not be limited to a maximum  dollar  amount  if
27    the  employee's  death  occurs  on or after January 23, 1987,
28    regardless of the  date  of  retirement;  provided  that,  if
29    retirement  was  before  January  23,  1987,  the employee or
30    eligible spouse repays the excess spouse refund with interest
31    at the effective rate from the date of refund to the date  of
32    repayment.
33        If  the  date  of the employee's retirement on annuity is
34    before July 1, 1990, and if  such  widow  of  such  described
 
HB5168 Enrolled            -89-                LRB9212225EGfg
 1    employee shall not have attained such age of 60 or more years
 2    on  such  date  of  her  husband's retirement on annuity, the
 3    amount provided in the immediately preceding paragraph for  a
 4    widow  60  or  more years of age on the date of her husband's
 5    retirement on annuity,  shall,  in  the  case  of  such  then
 6    younger  widow,  be  reduced by 0.25% for each month that her
 7    then attained age was less than 60 years if the employee  was
 8    born  before January 1, 1936, or withdraws from service on or
 9    after January 1, 1988, or 0.5% for each month that  her  then
10    attained  age was less than 60 years if the employee was born
11    on or after January 1, 1936 and withdraws from service before
12    January 1, 1988.
13        If the date of the employee's retirement on annuity is on
14    or after July 1, 1990, and if the widow of the  employee  has
15    not  attained age 55 by the date of the employee's retirement
16    on annuity, the amount otherwise provided in this  subsection
17    (b)  shall  be  reduced by 0.25% for each month that her then
18    attained age is less  than  55  years;  except  that  if  the
19    employee  retires  on  annuity on or after January 1, 1998 at
20    age 50 or over with at least 30 years of service or at age 55
21    or over with at least 25 years of service, there shall be  no
22    reduction  due  to the widow's age if she has attained age 50
23    on or before the employee's date of death, and if  the  widow
24    has  not  attained age 50 on or before the employee's date of
25    death the amount otherwise provided in  this  subsection  (b)
26    shall  be  reduced  by  0.25%  for  each  month that her then
27    attained age is less than 50 years.
28        (c)  The  foregoing  provisions   relating   to   minimum
29    annuities  for  widows  shall  not  apply to the widow of any
30    former employee receiving an annuity from the fund on  August
31    2,   1965  or  on  the  effective  date  of  this  amendatory
32    provision, who re-enters service as a former employee, unless
33    such employee renders at least 3 years of additional  service
34    after the date of re-entry.
 
HB5168 Enrolled            -90-                LRB9212225EGfg
 1        (d)  (Blank).
 2        (e)  (Blank).
 3        (f)  The  amendments  to  this Section by this amendatory
 4    Act of 1985, relating to changing the discount because of age
 5    from 1/2 of 1% to 0.25% per month  for  widows  of  employees
 6    born  before  January 1, 1936, shall apply only to qualifying
 7    widows whose husbands die while in the service  on  or  after
 8    August  16, 1985 or withdraw and enter on annuity on or after
 9    August 16, 1985.
10        (g)  Beginning on January 1, 1999, the minimum amount  of
11    widow's  annuity  shall  be  $800  per month for life for the
12    following classes of widows, without regard to the fact  that
13    the  death  of  the  employee occurred prior to the effective
14    date of this amendatory Act of 1998:
15             (1)  any widow annuitant alive and receiving a  term
16        annuity  on  the effective date of this amendatory Act of
17        1998, except a reciprocal annuity;
18             (2)  any widow annuitant alive and receiving a  life
19        annuity  on  the effective date of this amendatory Act of
20        1998, except a reciprocal annuity;
21             (3)  any  widow  annuitant  alive  and  receiving  a
22        reciprocal  annuity  on  the  effective  date   of   this
23        amendatory  Act  of 1998, whose employee spouse's service
24        in this fund was at least 5 years;
25             (4)  the widow of an employee with at least 10 years
26        of service in this fund who dies after retirement, if the
27        retirement occurred prior to the effective date  of  this
28        amendatory Act of 1998;
29             (5)  the widow of an employee with at least 10 years
30        of  service  in  this  fund who dies after retirement, if
31        withdrawal occurs on or after the effective date of  this
32        amendatory Act of 1998;
33             (6)  the  widow  of  an employee who dies in service
34        with at least 5 years of service in  this  fund,  if  the
 
HB5168 Enrolled            -91-                LRB9212225EGfg
 1        death in service occurs on or after the effective date of
 2        this amendatory Act of 1998.
 3        The  increases  granted under items (1), (2), (3) and (4)
 4    of this subsection (g) shall not  be  limited  by  any  other
 5    Section of this Act.
 6        (h)  The  widow  of  an  employee  who retired or died in
 7    service on or after January 1, 1985 and before July 1,  1990,
 8    at  age  55  or  older, and with at least 35 years of service
 9    credit,  shall  be  entitled  to  have  her  widow's  annuity
10    increased, effective January 1, 1991, to an amount  equal  to
11    50%  of  the  retirement  annuity  that the deceased employee
12    received on the  date  of  retirement,  or  would  have  been
13    eligible  to  receive  if he had retired on the day preceding
14    the date of his death in service, provided that if the  widow
15    had  not  attained  age  60  by  the  date  of the employee's
16    retirement or death in service, the  amount  of  the  annuity
17    shall  be  reduced  by  0.25%  for  each  month that her then
18    attained  age  was  less  than  age  60  if  the   employee's
19    retirement  or  death in service occurred on or after January
20    1, 1988, or by 0.5%  for each month that her attained age  is
21    less  than  age  60  if the employee's retirement or death in
22    service occurred prior to January 1, 1988.  However, in cases
23    where a refund of excess contributions  for  widow's  annuity
24    has  been  paid by the Fund, the increase in benefit provided
25    by this subsection (h) shall be contingent upon repayment  of
26    the  refund  to  the Fund with interest at the effective rate
27    from the date of refund to the date of payment.
28        (i)  If a deceased employee  is  receiving  a  retirement
29    annuity  at  the  time  of  death and that death occurs on or
30    after June 27, 1997, the widow may elect to receive, in  lieu
31    of  any other annuity provided under this Article, 50% of the
32    deceased employee's retirement annuity at the time  of  death
33    reduced  by  0.25% for each month that the widow's age on the
34    date of death is less than 55; except that  if  the  employee
 
HB5168 Enrolled            -92-                LRB9212225EGfg
 1    dies on or after January 1, 1998 and withdrew from service on
 2    or  after  June  27,  1997 at age 50 or over with at least 30
 3    years of service or at age 55 or over with at least 25  years
 4    of  service,  there  shall be no reduction due to the widow's
 5    age if she has attained age 50 on or  before  the  employee's
 6    date of death, and if the widow has not attained age 50 on or
 7    before  the  employee's  date  of  death the amount otherwise
 8    provided in this subsection (i) shall be reduced by 0.25% for
 9    each month that her age on the date of death is less than  50
10    years.    However,   in   cases  where  a  refund  of  excess
11    contributions for widow's annuity has been paid by the  Fund,
12    the  benefit  provided  by  this subsection (i) is contingent
13    upon repayment of the refund to the Fund with interest at the
14    effective rate from  the  date  of  refund  to  the  date  of
15    payment.
16        (j)  For  widows of employees who died before January 23,
17    1987 after retirement on annuity or in service,  the  maximum
18    dollar  amount  limitation  on widow's annuity shall cease to
19    apply, beginning with the first  annuity  payment  after  the
20    effective date of this amendatory Act of 1997; except that if
21    a refund of excess contributions for widow's annuity has been
22    paid by the Fund, the increase resulting from this subsection
23    (j)  shall not begin before the refund has been repaid to the
24    Fund, together with interest at the effective rate  from  the
25    date of the refund to the date of repayment.
26        (k)  In  lieu  of  any  other  annuity  provided  in this
27    Article, an eligible  spouse  of  an  employee  who  dies  in
28    service  at  least  60  days after the effective date of this
29    amendatory Act of the 92nd General Assembly with at least  10
30    years  of  service  shall be entitled to an annuity of 50% of
31    the minimum formula annuity earned and accrued to the  credit
32    of  the  employee  at the date of death.  For the purposes of
33    this subsection,  the  minimum  formula  annuity  earned  and
34    accrued  to  the credit of the employee is equal to 2.40% for
 
HB5168 Enrolled            -93-                LRB9212225EGfg
 1    each year of service of the highest average annual salary for
 2    any 4 consecutive years within the last 10 years  of  service
 3    immediately  preceding  the date of death, up to a maximum of
 4    80% of the highest average annual salary.  This annuity shall
 5    not be reduced due to the age of the employee or spouse.   In
 6    addition  to  any  other  eligibility requirements under this
 7    Article, the spouse is eligible for this annuity only if  the
 8    marriage was in effect for 10 full years or more.
 9    (Source:  P.A.  90-32,  eff.  6-27-97;  90-511, eff. 8-22-97;
10    90-766, eff. 8-14-98.)

11        (40 ILCS 5/11-153) (from Ch. 108 1/2, par. 11-153)
12        Sec. 11-153.  Child's annuity.
13        (a)  A "Child's Annuity" shall be payable  monthly  after
14    the  death  of an employee parent to an unmarried child until
15    the child's attainment of age 18 or marriage, whichever event
16    shall first occur, under the  following  conditions,  if  the
17    child  was  born  or in esse before the employee attained age
18    65, and before he withdrew from service:
19             (1)  upon death resulting from  injury  incurred  in
20        the performance of an act of duty;
21             (2)  upon death in service from any cause other than
22        injury  incurred  in  the  performance  of  duty,  if the
23        employee has at least 4 years of service after  the  date
24        of  his original entry into service, and at least 2 years
25        after the date of his latest re-entry;
26             (2)(3)  upon death of an employee who withdraws from
27        service after age 55 (or after age 50 with  at  least  30
28        years  of  service  if withdrawal is on or after June 27,
29        1997) and  who  has  entered  upon  or  is  eligible  for
30        annuity.
31    Payment shall be made as provided in Section 11-124.
32        (b)  After  July  24,  1967,  an  adopted  child shall be
33    entitled to the same child's annuity  benefits  provided  for
 
HB5168 Enrolled            -94-                LRB9212225EGfg
 1    natural children in this Article, if:
 2             (1)  the  child  was legally adopted by the employee
 3        at least one year prior to the death of the employee; and
 4             (2)  the  child  was  adopted  before  the  employee
 5        withdrew from service attained age 55.
 6    (Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)

 7        (40 ILCS 5/11-156) (from Ch. 108 1/2, par. 11-156)
 8        Sec. 11-156.  Ordinary disability benefit.   An employee,
 9    while under age 65 and prior to January  1,  1979,  or  while
10    under  age 70 and after January 1, 1979, who becomes disabled
11    after the effective date as the result  of  any  cause  other
12    than injury incurred in the performance of any act or acts of
13    duty, shall be entitled to ordinary disability benefit during
14    such disability, after the first 30 days thereof.
15        The disability benefit prescribed herein shall cease when
16    the  first  of  the  following  dates  shall  occur  and  the
17    employee,  if still disabled, shall thereafter be entitled to
18    such annuity as is otherwise provided in this Article:
19        (a)  the date disability ceases.
20        (b)  the date the disabled employee attains  age  65  for
21    disability commencing prior to January 1, 1979.
22        (c)  the  date  the  disabled  employee  attains  65  for
23    disability  commencing  prior  to attainment of age 60 in the
24    service and after January 1, 1979.
25        (d)  the date the disabled employee attains the age of 70
26    for disability commencing after attainment of age 60  in  the
27    service and after January 1, 1979.
28        (e)  the date the payments of the benefit shall exceed in
29    the  aggregate,  throughout  the employee's service, a period
30    equal to 1/4 of the total service rendered prior to the  date
31    of disability but in no event more than 5 years. In computing
32    such total the following periods shall be excluded:
33        (i)  Any   period  during  which  the  employee  received
 
HB5168 Enrolled            -95-                LRB9212225EGfg
 1    ordinary disability benefit;
 2        (ii)  Any period of absence from duty, whether caused  by
 3    layoff,  leave of absence or suspension of employment, or any
 4    other reason, unless the board, upon  satisfactory  evidence,
 5    finds that the disability resulted from a cause which existed
 6    or  occurred prior to such period of absence. No employee who
 7    becomes disabled and whose disability begins  during  absence
 8    from  duty (other than while on vacation with pay) shall have
 9    any right to ordinary disability benefit,  except  as  herein
10    provided, until he recovers from such disability and performs
11    the  duties  of  his  position in the service for at least 15
12    consecutive days, Sundays and holidays excepted,  after  such
13    recovery.
14        The  first payment shall be made not later than one month
15    after the benefit is  granted  and  each  subsequent  payment
16    shall  be  made  not  later  than  one  month  after the last
17    preceding payment.
18        Ordinary  disability  benefit  shall  be   50%   of   the
19    employee's salary at the date of disability.
20        For  ordinary  disability benefits paid before January 1,
21    2001, before any payment, an amount equal to,  less  the  sum
22    ordinarily  deducted from salary for all annuity purposes for
23    such period for which the ordinary disability benefit is made
24    shall be deducted from  such  payment  and  credited  to  the
25    employee  as  a  deduction  from salary for that period.  The
26    sums so deducted shall be credited to the employee and  shall
27    be  regarded,  for  annuity and refund purposes, as an amount
28    contributed by him.
29        For ordinary disability benefits paid on or after January
30    1, 2001, the fund shall credit  sums  equal  to  the  amounts
31    ordinarily  contributed  by  an employee for annuity purposes
32    for any period during which the  employee  receives  ordinary
33    disability,  and  those  sums  shall  be  deemed  for annuity
34    purposes  and  purposes  of   Section   11-169   as   amounts
 
HB5168 Enrolled            -96-                LRB9212225EGfg
 1    contributed  by  the  employee.   These  amounts credited for
 2    annuity purposes shall not be credited for refund purposes.
 3        Any  employee  whose  ordinary  disability  benefit   was
 4    terminated  after January 1, 1979 by reason of his attainment
 5    of age 65 and who continues disabled after age 65  may  elect
 6    before  July  1, 1986 to have such benefits resumed beginning
 7    at  the  time  of  such  termination  and  continuing   until
 8    termination is required under this Section as amended by this
 9    amendatory  Act  of 1985.  The amount payable to any employee
10    for such resumed benefit for any period shall be  reduced  by
11    the  amount  of  any retirement annuity paid to such employee
12    under this Article for the same period of time or  by  refund
13    paid in lieu of annuity.
14    (Source: P.A. 85-964.)

15        (40 ILCS 5/11-160.1) (from Ch. 108 1/2, par. 11-160.1)
16        Sec. 11-160.1.  Group health benefit.
17        (a)  For  the  purposes  of this Section: (1) "annuitant"
18    means a person receiving an age and service annuity, a  prior
19    service  annuity,  a widow's annuity, a widow's prior service
20    annuity, or a minimum annuity, under Article 5, 6, 8  or  11,
21    by  reason  of  previous  employment  by  the City of Chicago
22    (hereinafter, in this Section,  "the  city");  (2)  "Medicare
23    Plan  annuitant" means an annuitant described in item (1) who
24    is eligible for Medicare benefits; and (3) "non-Medicare Plan
25    annuitant" means an annuitant described in item  (1)  who  is
26    not eligible for Medicare benefits.
27        (b)  The  city  shall  offer  group  health  benefits  to
28    annuitants  and  their  eligible  dependents through June 30,
29    2003 2002.  The basic city health care plan available  as  of
30    June  30, 1988 (hereinafter called the basic city plan) shall
31    cease to be a plan offered by the city, except  as  specified
32    in  subparagraphs  (4)  and (5) below, and shall be closed to
33    new enrollment or transfer of coverage for  any  non-Medicare
 
HB5168 Enrolled            -97-                LRB9212225EGfg
 1    Plan  annuitant  as  of  June  27, the effective date of this
 2    amendatory Act of 1997.  The city  shall  offer  non-Medicare
 3    Plan  annuitants  and their eligible dependents the option of
 4    enrolling in its Annuitant Preferred Provider  Plan  and  may
 5    offer  additional  plans  for  any  annuitant.   The city may
 6    amend, modify, or terminate any of its  additional  plans  at
 7    its  sole  discretion.   If  the  city  offers  more than one
 8    annuitant plan, the city shall allow  annuitants  to  convert
 9    coverage  from one city annuitant plan to another, except the
10    basic city plan, during times designated by the  city,  which
11    periods  of  time  shall  occur  at  least annually.  For the
12    period dating from  June  27,  the  effective  date  of  this
13    amendatory  Act  of  1997 through June 30, 2003 2002, monthly
14    premium rates may be increased for annuitants during the time
15    of their  participation  in  non-Medicare  plans,  except  as
16    provided in subparagraphs (1) through (4) of this subsection.
17             (1)  For  non-Medicare  Plan  annuitants who retired
18        prior to  January  1,  1988,  the  annuitant's  share  of
19        monthly premium for non-Medicare Plan coverage only shall
20        not  exceed the highest premium rate chargeable under any
21        city non-Medicare Plan annuitant coverage as of  December
22        1, 1996.
23             (2)  For  non-Medicare Plan annuitants who retire on
24        or after  January  1,  1988,  the  annuitant's  share  of
25        monthly premium for non-Medicare Plan coverage only shall
26        be  the  rate in effect on December 1, 1996, with monthly
27        premium increases to take effect no sooner than April  1,
28        1998  at  the  lower  of  (i) the premium rate determined
29        pursuant to subsection (g) or (ii) 10% of the immediately
30        previous month's rate for similar coverage.
31             (3)  In  no  event  shall  any   non-Medicare   Plan
32        annuitant's  share  of  monthly  premium for non-Medicare
33        Plan coverage  exceed  10%  of  the  annuitant's  monthly
34        annuity.
 
HB5168 Enrolled            -98-                LRB9212225EGfg
 1             (4)  Non-Medicare  Plan  annuitants who are enrolled
 2        in the basic city plan as of July 1, 1998 may  remain  in
 3        the  basic city plan, if they so choose, on the condition
 4        that they are not entitled to the caps on rates set forth
 5        in subparagraphs (1) through (3), and their premium  rate
 6        shall   be   the   rate  determined  in  accordance  with
 7        subsections (c) and (g).
 8             (5)  Medicare  Plan  annuitants  who  are  currently
 9        enrolled in the basic city  plan  for  Medicare  eligible
10        annuitants  may  remain  in that plan, if they so choose,
11        through June 30, 2003  2002.   Annuitants  shall  not  be
12        allowed to enroll in or transfer into the basic city plan
13        for  Medicare  eligible  annuitants  on  or after July 1,
14        1999.  The city shall  continue  to  offer  annuitants  a
15        supplemental   Medicare   Plan   for   Medicare  eligible
16        annuitants through June 30, 2003 2002, and the  city  may
17        offer additional plans to Medicare eligible annuitants in
18        its sole discretion.  All Medicare Plan annuitant monthly
19        rates  shall be determined in accordance with subsections
20        (c) and (g).
21        (c)  The city shall pay 50% of the  aggregated  costs  of
22    the   claims   or   premiums,  whichever  is  applicable,  as
23    determined in accordance with subsection (g),  of  annuitants
24    and  their  dependents under all health care plans offered by
25    the city.  The city may reduce its obligation by  application
26    of  price  reductions  obtained  as  a  result  of  financial
27    arrangements with providers or plan administrators.
28        (d)    From January 1, 1993 until June 30, 2003 2002, the
29    board shall pay to the city on behalf of each of the  board's
30    annuitants  who  chooses  to participate in any of the city's
31    plans the following amounts: up to a maximum of $75 per month
32    for each such annuitant  who  is  not  qualified  to  receive
33    medicare  benefits,  and up to a maximum of $45 per month for
34    each such annuitant who  is  qualified  to  receive  medicare
 
HB5168 Enrolled            -99-                LRB9212225EGfg
 1    benefits.
 2        The  payments  described in this subsection shall be paid
 3    from the tax  levy  authorized  under  Section  11-178;  such
 4    amounts  shall  be credited to the reserve for group hospital
 5    care and group medical and surgical plan  benefits,  and  all
 6    payments  to the city required under this subsection shall be
 7    charged against it.
 8        (e)  The city's obligations under subsections (b) and (c)
 9    shall terminate on June 30, 2003 2002, except with regard  to
10    covered expenses incurred but not paid as of that date.  This
11    subsection  shall  not  affect  other obligations that may be
12    imposed by law.
13        (f)  The group coverage plans described in  this  Section
14    are  not  and  shall  not  be  construed  to  be  pension  or
15    retirement benefits for purposes of Section 5 of Article XIII
16    of the Illinois Constitution of 1970.
17        (g)  For  each  annuitant  plan  offered by the city, the
18    aggregate cost of claims, as reflected in the  claim  records
19    of  the  plan  administrator, shall be estimated by the city,
20    based upon a written determination by a qualified independent
21    actuary to be appointed and paid by the city and  the  board.
22    If  the estimated annual cost for each annuitant plan offered
23    by  the  city  is  more  than  the  estimated  amount  to  be
24    contributed by the city for that plan pursuant to subsections
25    (b) and (c) during that year plus the estimated amounts to be
26    paid pursuant to subsection (d)  and  by  the  other  pension
27    boards  on  behalf  of  other  participating  annuitants, the
28    difference shall be paid by all annuitants  participating  in
29    the  plan,  except  as provided in subsection (b).  The city,
30    based upon the  determination  of  the  independent  actuary,
31    shall set the monthly amounts to be paid by the participating
32    annuitants.   The  board may deduct the amounts to be paid by
33    its annuitants from  the  participating  annuitants'  monthly
34    annuities.
 
HB5168 Enrolled            -100-               LRB9212225EGfg
 1        If it is determined from the city's annual audit, or from
 2    audited  experience  data,  that the total amount paid by all
 3    participating annuitants was more or less than the difference
 4    between (1) the cost  of  providing  the  group  health  care
 5    plans,  and  (2) the sum of the amount to be paid by the city
 6    as determined under subsection (c) and the  amounts  paid  by
 7    all  the pension boards, then the independent actuary and the
 8    city shall account for the excess or shortfall  in  the  next
 9    year's   payments   by  annuitants,  except  as  provided  in
10    subsection (b).
11        (h)  An annuitant may elect to terminate  coverage  in  a
12    plan  at the end of any month, which election shall terminate
13    the annuitant's obligation to contribute  toward  payment  of
14    the excess described in subsection (g).
15        (i)  The  city  shall  advise  the  board of all proposed
16    premium increases for health care at least 75 days  prior  to
17    the  effective  date of the change, and any increase shall be
18    prospective only.
19    (Source: P.A. 90-32, eff. 6-27-97.)

20        (40 ILCS 5/11-164) (from Ch. 108 1/2, par. 11-164)
21        Sec. 11-164. Refunds - Withdrawal before age 55  or  with
22    less than 10 years of service.
23        (1)  An  employee,  without  regard to length of service,
24    who withdraws before age 55, and any employee with less  than
25    10  years  of  service  who withdraws before age 60, shall be
26    entitled to a refund of the  total  sum  accumulated  to  his
27    credit  as  of date of withdrawal for age and service annuity
28    and widow's annuity from amounts contributed by him or by the
29    City  in  lieu  of   employee   contributions   during   duty
30    disability;  provided  that  such  amounts contributed by the
31    city after December 31, 1983 while the employee is  receiving
32    duty disability benefits and amounts credited to the employee
33    for  annuity  purposes  by  the  fund after December 31, 2000
 
HB5168 Enrolled            -101-               LRB9212225EGfg
 1    while the employee is receiving ordinary disability  benefits
 2    shall not be credited for refund purposes.
 3        The  board  may  in  its  discretion  withhold payment of
 4    refund for a period not to exceed 6 months from the  date  of
 5    withdrawal.  Interest  at the effective rate shall be paid on
 6    any such refund withheld during such withheld period  not  to
 7    exceed 6 months.
 8        (2)  Upon  receipt of the refund, the employee surrenders
 9    and forfeits all rights to any annuity or other benefits, for
10    himself and for any other persons who  might  have  benefited
11    through him; provided that he may have such period of service
12    counted  in  computing  the  term  of his service for age and
13    service annuity purposes  only  if  he  becomes  an  employee
14    before age 65.
15        (3)  An employee who does not receive a refund shall have
16    all amounts to his credit for annuity purposes on the date of
17    his withdrawal improved by interest only until he becomes age
18    65,  while  out  of  service,  at the effective rate, for his
19    benefit and the benefit of any person who may have any  right
20    to  annuity  through  him  if  he  re-enters  the service and
21    attains a right to annuity.
22        (4)  Any such employee shall retain such right to  refund
23    of  such  amounts  when  he  shall  apply  for same, until he
24    re-enters the service or until the amount of annuity to which
25    he shall have a right shall have been fixed  as  provided  in
26    this  Article.  Thereafter,  no such right shall exist in the
27    case of any such employee.
28    (Source: P.A. 83-499.)

29        (40 ILCS 5/11-167) (from Ch. 108 1/2, par. 11-167)
30        Sec. 11-167.  Refunds in lieu of annuity.  In lieu of  an
31    annuity,  an  employee who withdraws, and whose annuity would
32    amount to less than $800  a  month  for  life  may  elect  to
33    receive  a  refund of the total sum accumulated to his credit
 
HB5168 Enrolled            -102-               LRB9212225EGfg
 1    from employee contributions for annuity purposes.
 2        The widow of any employee, eligible for annuity upon  the
 3    death of her husband, whose annuity would amount to less than
 4    $800  a  month  for  life, may, in lieu of a widow's annuity,
 5    elect to receive a refund of  the  accumulated  contributions
 6    for annuity purposes, based on the amounts contributed by her
 7    deceased   employee  husband,  but  reduced  by  any  amounts
 8    theretofore paid to him in the form of an annuity  or  refund
 9    out of such accumulated contributions.
10        Accumulated   contributions   shall   mean   the  amounts
11    including  interest  credited  thereon  contributed  by   the
12    employee  for age and service and widow's annuity to the date
13    of his withdrawal  or  death,  whichever  first  occurs,  and
14    including  the accumulations from any amounts contributed for
15    him as salary  deductions  while  receiving  duty  disability
16    benefits;  provided that such amounts contributed by the city
17    after December 31, 1983 while the employee is receiving  duty
18    disability  benefits and amounts credited to the employee for
19    annuity purposes by the fund after December  31,  2000  while
20    the employee is receiving ordinary disability benefits.
21        The acceptance of such refund in lieu of widow's annuity,
22    on the part of a widow, shall not deprive a child or children
23    of the right to receive a child's annuity as provided  for in
24    Sections 11-153 and 11-154 of this Article, and neither shall
25    the  payment  of a child's annuity in the case of such refund
26    to a widow reduce the amount herein set forth  as  refundable
27    to such widow electing a refund in lieu of widow's annuity.
28    (Source: P.A. 90-655, eff. 7-30-98; 91-887, eff. 7-6-00.)

29        (40 ILCS 5/13-301) (from Ch. 108 1/2, par. 13-301)
30        Sec.   13-301.  Retirement   annuity;  eligibility.   Any
31    employee who withdraws from service and  meets  the  age  and
32    service  requirements  and  other  conditions  set  forth  in
33    subsections  (a),  (b),  (c)  or  (d)  hereof  is entitled to
 
HB5168 Enrolled            -103-               LRB9212225EGfg
 1    receive a retirement annuity.
 2        (a)  Withdrawal on or after age 60.  Any  employee,  upon
 3    withdrawal  from service on or after attainment of age 60 and
 4    having at  least  5  years  of  service,  is  entitled  to  a
 5    retirement annuity.
 6        (b)  Withdrawal   on   or  after  attainment  of  minimum
 7    retirement age qualifications and prior to age 60.
 8             (1)  Any employee, upon withdrawal from  service  on
 9        or  after  attainment  of  age 55 (age 50 if the employee
10        first entered service before June 13, the effective  date
11        of  this  amendatory Act of 1997) but prior to age 60 and
12        having at least 10 years of service,  is  entitled  to  a
13        retirement  annuity  as  of the date of withdrawal or, at
14        the option of the employee, at any time thereafter.
15             (2)  Any  employee  who  withdraws   on   or   after
16        attainment  of  age  55  (age  50  if  the employee first
17        entered service before June 13,  the  effective  date  of
18        this  amendatory  Act of 1997) and prior to age 60 having
19        at least 5 years but less than 10  years  of  service  is
20        entitled  to  a retirement annuity upon attainment of age
21        62, subject to the other requirements of this Article.
22             (3)  Any employee who withdraws from service  on  or
23        after  attainment  of  age  50 but prior to age 60 and is
24        eligible for early retirement without discount under  the
25        Rule  of  80  as  provided  in  subsection (c) of Section
26        13-302 is entitled to a retirement annuity at the time of
27        withdrawal.
28        (c)  Withdrawal prior to  minimum  retirement  age.   Any
29    employee,  upon  withdrawal from service prior to age 55 (age
30    50 if the employee first entered service before June 13,  the
31    effective  date of this amendatory Act of 1997) and having at
32    least 10  years  of  service,  shall  become  entitled  to  a
33    retirement  annuity  upon attainment of age 55 (age 50 if the
34    employee first entered service before June 13, the  effective
 
HB5168 Enrolled            -104-               LRB9212225EGfg
 1    date of this amendatory Act of 1997) or, at the option of the
 2    employee,  at  any  time  thereafter,  subject  to  the other
 3    requirements of this Article.
 4        (d)  Withdrawal while disabled.  Any employee  having  at
 5    least 5 years of service who has received ordinary disability
 6    benefits  on  or after January 1, 1986 for the maximum period
 7    of time hereinafter  prescribed,  and  who  continues  to  be
 8    disabled  and  withdraws from service, shall be entitled to a
 9    retirement annuity.  The age and  service  conditions  as  to
10    eligibility  for  such  annuity  shall  be  waived  as to the
11    employee, but the early  retirement  discount  under  Section
12    13-302(b)  shall  apply.   If the employee is under age 55 on
13    the date of  withdrawal,  the  retirement  annuity  shall  be
14    computed  by  assuming  that  the employee is then age 55 and
15    then reduced to its actuarial equivalent at his attained  age
16    on  that  date  according  to applicable mortality tables and
17    interest rates.  The retirement annuity shall not be  payable
18    for  any  period prior to the employee's attainment of age 55
19    during which the  employee  is  able  to  return  to  gainful
20    employment.   Upon the employee's death while in receipt of a
21    retirement annuity, a  surviving  spouse  or  minor  children
22    shall  be entitled to receive a surviving spouse's annuity or
23    child's  annuity  subject  to  the   conditions   hereinafter
24    prescribed in Sections 13-305 through 13-308.
25    (Source: P.A. 90-12, eff. 6-13-97.)

26        (40 ILCS 5/13-302) (from Ch. 108 1/2, par. 13-302)
27        Sec. 13-302.  Computation of retirement annuity.
28        (a)  Computation  of  annuity.  An employee who withdraws
29    from service on or after July 1, 1989 and who has met the age
30    and service requirements and other conditions for eligibility
31    set forth in Section 13-301 of this Article  is  entitled  to
32    receive  a  retirement  annuity  for  life  equal  to 2.2% of
33    average final salary for  each  of  the  first  20  years  of
 
HB5168 Enrolled            -105-               LRB9212225EGfg
 1    service,  and  2.4%  of average final salary for each year of
 2    service in excess of 20.  The retirement  annuity  shall  not
 3    exceed 80% of average final salary.
 4        (b)  Early  retirement  discount.  If an employee retires
 5    prior to attainment of age 60 with  less  than  30  years  of
 6    service,  the  annuity computed above shall be reduced by 1/2
 7    of 1% for each full month between the date the annuity begins
 8    and attainment of age 60, or each full  month  by  which  the
 9    employee's service is less than 30 years, whichever is less.
10    However,  where  the employee first enters service after June
11    13, 1997 and does not have  at  least  10  years  of  service
12    exclusive  of  credit  under Article 20, the annuity computed
13    above shall be reduced by 1/2  of  1%  for  each  full  month
14    between the date the annuity begins and attainment of age 60.
15        (c)  Rule  of 80 - Early retirement without discount. For
16    an employee who retires on or after January 1, 2003 but on or
17    before December 31, 2007, if the employee is eligible  for  a
18    retirement  annuity  under Section 13-301 and has at least 10
19    years of service exclusive of credit under Article 20 and  if
20    at  the  date  of withdrawal the employee's age when added to
21    the number of years of his or her creditable  service  equals
22    at  least 80, the early retirement discount in subsection (b)
23    of this Section does not apply. For purposes of this Rule  of
24    80, portions of years shall be considered in whole months.
25        An  employee  who  has  terminated  employment  with  the
26    employer  under  this  Article prior to the effective date of
27    this  amendatory  Act  of  the  92nd  General  Assembly   and
28    subsequently  re-enters  service  must remain in service with
29    the employer under this Article for at least  2  years  after
30    re-entry  during  the period beginning on January 1, 2003 and
31    ending  on  December  31,  2007  to  be  entitled  to   early
32    retirement without discount under this subsection (c).
33        In the case of an employee who retires under the terms of
34    Article 20, eligibility for early retirement without discount
 
HB5168 Enrolled            -106-               LRB9212225EGfg
 1    under  this subsection (c) shall be based upon the employee's
 2    age and service credit at the time  of  withdrawal  from  the
 3    final fund. (Blank).
 4        (c-1)  Early   retirement  without  discount;  retirement
 5    after June 29, 1997 and before January 1, 2003.  An  employee
 6    who  (i)  has  attained  age 55 (age 50 if the employee first
 7    entered service before June 13, 1997), (ii) has at  least  10
 8    years  of service exclusive of credit under Article 20, (iii)
 9    retires after June 29, 1997 and before January 1,  2003,  and
10    (iv)  retires  within  6  months  of  the  last day for which
11    retirement contributions were required, may elect at the time
12    of application to make a one-time  employee  contribution  to
13    the  Fund  and  thereby  avoid the early retirement reduction
14    specified in subsection (b).  The exercise  of  the  election
15    shall   also   obligate  the  employer  to  make  a  one-time
16    nonrefundable contribution to the Fund.
17        The one-time employee and employer contributions shall be
18    a percentage of the  retiring  employee's  highest  full-time
19    annual  salary,  calculated  as  the  total  amount of salary
20    included in the highest 26 consecutive pay periods as used in
21    the average  final  salary  calculation,  and  based  on  the
22    employee's  age and service at retirement.  The employee rate
23    shall be 7% multiplied by  the  lesser  of  the  following  2
24    numbers:  (1)  the  number of years, or portion thereof, that
25    the employee is less than age 60; or (2) the number of years,
26    or portion thereof, that the employee's service is less  than
27    30  years.  The employer contribution shall be at the rate of
28    20% for each year, or portion thereof, that  the  participant
29    is less than age 60.
30        Upon   receipt   of  the  application,  the  Board  shall
31    determine   the   corresponding   employee    and    employer
32    contributions.   The  annuity shall not be payable under this
33    subsection until both the required  contributions  have  been
34    received  by  the  Fund.  However, the date the contributions
 
HB5168 Enrolled            -107-               LRB9212225EGfg
 1    are received shall  not  be  considered  in  determining  the
 2    effective date of retirement.
 3        The number of employees who may retire under this Section
 4    in any year may be limited at the option of the District to a
 5    specified  percentage  of those eligible, not lower than 30%,
 6    with the right to participate to  be  allocated  among  those
 7    applying  on  the  basis  of  seniority in the service of the
 8    employer.
 9        An   employee   who   has   terminated   employment   and
10    subsequently re-enters service shall not be entitled to early
11    retirement without discount under this subsection unless  the
12    employee  continues  in  service  for  at least 4 years after
13    re-entry.
14        (d)  Annual increase.  Except for employees retiring  and
15    receiving a term annuity, an employee who retires on or after
16    July  1, 1985 but before July 12, 2001, the effective date of
17    this amendatory Act of the 92nd General Assembly shall,  upon
18    the first payment date following the first anniversary of the
19    date  of retirement, have the monthly annuity increased by 3%
20    of the amount of the monthly annuity fixed  at  the  date  of
21    retirement.    Except  for employees retiring and receiving a
22    term annuity, an employee who retires on or  after  July  12,
23    2001  the  effective  date of this amendatory Act of the 92nd
24    General Assembly shall, on the first  day  of  the  month  in
25    which the first anniversary of the date of retirement occurs,
26    have the monthly annuity increased by 3% of the amount of the
27    monthly annuity fixed at the date of retirement.  The monthly
28    annuity  shall  be  increased by an additional 3% on the same
29    date each year thereafter.  Beginning January  1,  1993,  all
30    annual  increases  payable  under  this  subsection  (or  any
31    predecessor  provision, regardless of the date of retirement)
32    shall be calculated at the rate of 3% of the monthly  annuity
33    payable  at the time of the increase, including any increases
34    previously granted under this Article.
 
HB5168 Enrolled            -108-               LRB9212225EGfg
 1        Any employee who (i) retired before July 1, 1985 with  at
 2    least  10  years  of  creditable service, (ii) is receiving a
 3    retirement annuity under this  Article,  other  than  a  term
 4    annuity, and (iii) has not received any annual increase under
 5    this  subsection,  shall begin receiving the annual increases
 6    provided under this subsection  (d)  beginning  on  the  next
 7    annuity  payment  date  following  June 13, effective date of
 8    this amendatory Act of 1997.
 9        (e)  Minimum retirement annuity.   Beginning  January  1,
10    1993,  the  minimum  monthly retirement annuity shall be $500
11    for any annuitant having at least 10 years of  service  under
12    this Article, other than a term annuitant or an annuitant who
13    began  receiving  the  annuity  before attaining age 60.  Any
14    such annuitant who is receiving a  monthly  annuity  of  less
15    than  $500  shall  have the annuity increased to $500 on that
16    date.
17        Beginning January 1, 1993, the minimum monthly retirement
18    annuity shall be $250 for any annuitant (other than a term or
19    reciprocal annuitant or an annuitant under subsection (d)  of
20    Section  13-301)  having  less than 10 years of service under
21    this Article, and  for  any  annuitant  (other  than  a  term
22    annuitant)  having  at  least  10 years of service under this
23    Article who began receiving the annuity before attaining  age
24    60.  Any such annuitant who is receiving a monthly annuity of
25    less  than  $250  shall have the annuity increased to $250 on
26    that date.
27        Beginning on the first day of  the  month  following  the
28    month  in  which  this  amendatory  Act  of  the 92nd General
29    Assembly takes effect (and  without  regard  to  whether  the
30    annuitant  was  in  service on or after that effective date),
31    the minimum monthly  retirement  annuity  for  any  annuitant
32    having  at least 10 years of service, other than an annuitant
33    whose annuity is subject to  an  early  retirement  discount,
34    shall  be $500 plus $25 for each year of service in excess of
 
HB5168 Enrolled            -109-               LRB9212225EGfg
 1    10, not to exceed $750 for an annuitant with 20 or more years
 2    of service.  In  the  case  of  a  reciprocal  annuity,  this
 3    minimum  shall  apply  only  if the annuitant has at least 10
 4    years of service under this Article, and the  amount  of  the
 5    minimum  annuity  shall  be  reduced  by  the  sum of all the
 6    reciprocal  annuities  payable  to  the  annuitant  by  other
 7    participating systems under Article 20 of this Code.
 8        Notwithstanding any other provision of  this  subsection,
 9    beginning  on  the  first annuity payment date following July
10    12, 2001 the effective date of this  amendatory  Act  of  the
11    92nd  General Assembly, an employee who retired before August
12    23, 1989 with at least 10 years of service under this Article
13    but before  attaining  age  60  (regardless  of  whether  the
14    retirement   annuity  was  subject  to  an  early  retirement
15    discount) shall be  entitled  to  the  same  minimum  monthly
16    retirement  annuity  under this subsection as an employee who
17    retired with at least 10 years of service under this  Article
18    and after attaining age 60.
19    (Source: P.A. 92-53, eff. 7-12-01.)

20        (40 ILCS 5/13-304) (from Ch. 108 1/2, par. 13-304)
21        Sec.  13-304.  Optional  plan  of additional benefits and
22    contributions made through December 31, 2002.
23        (a)  While this plan is in effect, an  eligible  employee
24    may  establish  additional  optional  credit  for  additional
25    benefits   by  electing  in  writing  at  any  time  to  make
26    additional  optional   contributions.    The   employee   may
27    discontinue  making  the additional optional contributions at
28    any time by notifying the Fund in writing.
29        Employees first entering service after June 30, 1997  are
30    not  eligible  to  participate  in the plan established under
31    this Section.
32        (b)  Additional optional contributions for the additional
33    optional benefits shall be as follows:
 
HB5168 Enrolled            -110-               LRB9212225EGfg
 1             (1)  For service after the  option  is  elected,  an
 2        additional   contribution   of  3%  of  salary  shall  be
 3        contributed to the Fund on the same basis and  under  the
 4        same  conditions  as contributions required under Section
 5        13-502.
 6             (2)  For service before the option  is  elected,  an
 7        additional  contribution  of  3%  of  the  salary for the
 8        applicable period of service, plus interest at the annual
 9        rate as shall from time to  time  be  determined  by  the
10        Board,  compounded  annually  from the date of service to
11        the date of payment.  All payments for past service  must
12        be paid in full before credit is given.  A person who has
13        withdrawn   from   service   may   pay   the   additional
14        contribution  for past service at any time within 30 days
15        after withdrawal from service, so long as payment is made
16        in full before  the  retirement  annuity  commences.   No
17        additional  optional  contributions  may  be made for any
18        period of service for which credit  has  been  previously
19        forfeited by acceptance of a refund, unless the refund is
20        repaid  in  full  with  interest at the rate specified in
21        Section 13-603, from the date of refund to  the  date  of
22        repayment.   Nothing  herein may be construed to allow an
23        additional  optional  contribution  to  be  made  on  the
24        account of a deceased employee.
25        (c)  Additional optional benefit  shall  accrue  for  all
26    periods    of   eligible   service   for   which   additional
27    contributions are paid in full.  The additional benefit shall
28    consist of an additional 1% of average final salary for  each
29    year  of  service  for which optional contributions have been
30    paid, to be added to the  employee's  retirement  annuity  as
31    otherwise  computed  under  this Article.  The calculation of
32    these additional benefits shall be subject to the same  terms
33    and  conditions  as  are  used  in  the  calculation  of  the
34    retirement   annuity  under  this  Article.   The  additional
 
HB5168 Enrolled            -111-               LRB9212225EGfg
 1    benefit shall be included in the calculation of the automatic
 2    annual increase in annuity under Section  13-302(d),  and  in
 3    the   calculation   of   surviving   spouse's  annuity  where
 4    applicable.  However, no additional benefits will be  granted
 5    which  produce  a  total  annuity greater than the applicable
 6    maximum established for that type of annuity in this Article.
 7    The total additional optional benefit that  may  be  received
 8    under this Section is 15% of average final salary.
 9        (d)  Refunds  of  additional optional contributions shall
10    be made on the same basis and under the  same  conditions  as
11    provided under Section 13-601.
12        (e)  Optional  contributions  shall be accounted for in a
13    separate Optional Contribution Reserve.
14        (f)  The tax levy computed under Section 13-503 shall  be
15    based  on  employee  contributions  including  the  amount of
16    optional additional employee contributions.
17        (g)  Service eligible under this Section may include only
18    service as an employee as  defined  in  Section  13-204,  and
19    subject  to  Section  13-401  and 13-402.  No service granted
20    under Section 13-801 or 13-802 shall be eligible for optional
21    service  credit.   No  optional   service   credit   may   be
22    established  for  any  military  service,  or for any service
23    under any other  Article  of  this  Code.   Optional  service
24    credit  may  be established for any period of disability paid
25    from this Fund, if the  employee  makes  additional  optional
26    contributions for such period of disability.
27        (h)  This  plan  of  optional  benefits and contributions
28    shall not apply to service prior to  withdrawal  rendered  by
29    any   former  employee  who  re-enters  service  unless  such
30    employee renders not  less  than  36  consecutive  months  of
31    additional service after the date of re-entry.
32        (i)  The   effective   date  of  this  optional  plan  of
33    additional benefits and contributions shall be the date  upon
34    which   approval  was  received  from  the  Internal  Revenue
 
HB5168 Enrolled            -112-               LRB9212225EGfg
 1    Service, July 31, 1987.
 2        (j)  This plan of additional benefits  and  contributions
 3    shall  expire December 31, 2002.  No additional contributions
 4    may be made after that date, and no additional benefits  will
 5    accrue after that date.
 6        (k)  The  maximum optional benefits for current and prior
 7    service for which an employee can  make  contributions  in  a
 8    single  year  shall be limited to 15 years of service in 1997
 9    and before; 9 years of service in 1998; 6 years of service in
10    1999; and 3 years of service in 2000,  2001,  and  2002.   No
11    person  may establish additional optional benefits under this
12    Section for more than 15 years of service.
13    (Source: P.A. 90-12, eff. 6-13-97.)

14        (40 ILCS 5/13-304.1 new)
15        Sec. 13-304.1.  Optional plan of additional benefits  and
16    contributions made January 1, 2003 through December 31, 2007.
17        (a)  While  this  plan  is  in  effect,  an  employee may
18    establish  optional  additional  credit   toward   additional
19    benefits  for  eligible  service  by  making  an  irrevocable
20    written   election   to   make  additional  contributions  as
21    authorized in this Section.  An employee may  begin  to  make
22    additional  contributions  under  this  Section,  via payroll
23    deduction, no earlier  than  the  first  pay  period  of  the
24    calendar  year  in  which  the  employee fulfills the 10-year
25    service  requirement  described  in  subsection   (g).    The
26    additional contributions of 4% of salary shall be paid to the
27    Fund  on  the  same  basis  and  under the same conditions as
28    contributions required under Section 13-502.
29        (b)  For service before an irrevocable option is elected,
30    but within the same calendar year, an additional contribution
31    may be made of 4% of the salary for the applicable period  of
32    service,  plus  interest from the date of service to the date
33    of contribution at a rate equal to the higher of 8% per annum
 
HB5168 Enrolled            -113-               LRB9212225EGfg
 1    or the actuarial investment return  assumption  used  in  the
 2    Fund's  most recent annual actuarial statement.  All payments
 3    for past service must be paid within  the  calendar  year  in
 4    which  the  service  was earned; except that a person who has
 5    withdrawn from service  and  is  eligible  for  a  retirement
 6    annuity   under   Section   13-301  may  pay  the  additional
 7    contribution for past service within  the  calendar  year  of
 8    withdrawal  within the 30 days after withdrawal from service,
 9    as long as payment is made  in  full  before  the  retirement
10    annuity  commences  and before December 31, 2007.  Nothing in
11    this Section may be construed to allow an additional optional
12    contribution  to  be  made  on  the  account  of  a  deceased
13    employee.
14        (c)  The maximum additional benefit for  current  service
15    for  which  an  employee  may  make  contributions under this
16    Section in a single year is limited to one year of service in
17    each of  2003,  2004,  2005,  2006,  and  2007.    The  total
18    additional   benefit  that  may  be  accumulated  under  this
19    Section, including any additional benefit accumulated under a
20    prior optional benefit plan, is 12% of average  final  salary
21    at retirement.
22        The  additional  benefit  shall accrue for all periods of
23    eligible service for which additional contributions have been
24    paid in full in accordance with this Section, subject to  the
25    applicable limitations on maximum annuity.
26        The  additional benefit shall consist of an additional 1%
27    of average final salary for each year of  service  for  which
28    optional  contributions  have  been  paid, to be added to the
29    employee's retirement annuity  as  otherwise  computed  under
30    this  Article.   The calculation of these additional benefits
31    shall be subject to the same terms and conditions as are used
32    in the calculation  of  the  retirement  annuity  under  this
33    Article.   The  additional  benefit  shall be included in the
34    calculation of the automatic annual increase in annuity under
 
HB5168 Enrolled            -114-               LRB9212225EGfg
 1    Section  13-302(d)  and  in  the  calculation  of   surviving
 2    spouse's  annuity,  where applicable.  However, no additional
 3    benefit may be granted which produces a total annuity greater
 4    than the applicable maximum  established  for  that  type  of
 5    annuity in this Article.
 6        (d)  Refunds of additional optional contributions made in
 7    accordance  with  the  provisions  and  limitations  of  this
 8    Section  shall  be  made on the same basis and under the same
 9    conditions as are provided under Section 13-601.  Any  refund
10    of  contributions  that  exceed  the limits specified in this
11    Section shall be made in  accordance  with  established  Fund
12    policy.
13        (e)  The  additional contributions shall be accounted for
14    in a separate Optional Contribution Reserve.
15        (f)  The tax levy computed under Section 13-503 shall  be
16    based  on  employee  contributions and the amount of optional
17    additional  employee  contributions,  as  provided  in   that
18    Section.
19        (g)  The   service   eligible   for  optional  additional
20    contributions under this Section is limited to service as  an
21    employee  as  defined  in  Section  13-204,  and  subject  to
22    Sections  13-401  and  13-402, but excluding service credited
23    under subsections 13-401(a)4 and 13-401(d).  Service  granted
24    under  Section  13-801 or 13-802 is not eligible for optional
25    additional  contributions.    Eligible  service  is   further
26    limited to service rendered during or after the calendar year
27    in  which the employee reaches 10 years of service as defined
28    under Section 13-402, exclusive of any credit  under  Article
29    20.
30        Service  eligible  for  optional additional contributions
31    under this Section includes any  period  of  disability  paid
32    from  this  Fund that would have been eligible service if the
33    employee were in active service rather than  disabled.    The
34    additional  contributions for a period of disability shall be
 
HB5168 Enrolled            -115-               LRB9212225EGfg
 1    calculated as 4% of the salary that the employee  would  have
 2    received  if  he or she had been in active service during the
 3    applicable period of disability,  plus  interest  at  a  rate
 4    equal  to  the  higher  of  8%  per  annum  or  the actuarial
 5    investment return assumption used in the Fund's  most  recent
 6    annual  actuarial  statement,  compounded  annually, from the
 7    date of the service to the date of payment.  The contribution
 8    must be paid to the Fund no later than  3  months  after  the
 9    employee returns to service from disability, and in any event
10    prior to December 31, 2007.
11        (h)  The minimum period for which an employee may make an
12    irrevocable  election  to make additional contributions shall
13    be 26 consecutive pay  periods,  unless  the  employee  first
14    accumulates  the  maximum  optional  credit  as  described in
15    subsection (c) of this Section.  The maximum period for which
16    an employee may make  irrevocable  elections  for  additional
17    contributions  shall be from the date of election through the
18    last  pay  period  eligible  for  contributions  under   this
19    Section.
20        (i)  This  plan  of additional benefits and contributions
21    expires on December 31, 2007.   No  additional  contributions
22    may  be made after that date, and no additional benefits will
23    accrue after that date.

24        (40 ILCS 5/13-502) (from Ch. 108 1/2, par. 13-502)
25        Sec. 13-502.   Employee  contributions;  deductions  from
26    salary.
27        (a)  Retirement annuity and child's annuity.  There shall
28    be  deducted  from  each payment of salary an amount equal to
29    7 1/2% of salary  as  the  employee's  contribution  for  the
30    retirement  annuity, including annual increases therefore and
31    child's annuity.
32        (b)  Surviving spouse's annuity.  There shall be deducted
33    from each payment of salary an  amount  equal  to  1 1/2%  of
 
HB5168 Enrolled            -116-               LRB9212225EGfg
 1    salary  as  the  employee's  contribution  for  the surviving
 2    spouse's annuity and annual increases therefor.
 3        (c)  Pickup of employee contributions.  The Employer  may
 4    pick up employee contributions required under subsections (a)
 5    and (b) of this Section.  If contributions are picked up they
 6    shall be treated as Employer contributions in determining tax
 7    treatment  under the United States Internal Revenue Code, and
 8    shall not be included as gross income of the  employee  until
 9    such  time  as  they are distributed.  The Employer shall pay
10    these employee contributions from the same  source  of  funds
11    used in paying salary to the employee.  The Employer may pick
12    up  these  contributions by a reduction in the cash salary of
13    the employee or by an offset against a future salary increase
14    or by a combination of  a  reduction  in  salary  and  offset
15    against  a future salary increase.  If employee contributions
16    are picked up they shall be treated for all purposes of  this
17    Article 13, including Sections 13-503 and 13-601, in the same
18    manner  and to the same extent as employee contributions made
19    prior to the date picked up.
20        (d)  Subject to the  requirements  of  federal  law,  the
21    Employer  shall  pick  up  optional  contributions  that  the
22    employee  has  elected  to  pay  to  the  Fund  under Section
23    13-304.1, and the contributions so picked up shall be treated
24    as employer contributions for  the  purposes  of  determining
25    federal  tax  treatment.   The  Employer  shall  pick  up the
26    contributions by a  reduction  in  the  cash  salary  of  the
27    employee  and  shall pay the contributions from the same fund
28    that is used to pay earnings to the employee.   The  Employer
29    shall, however, continue to withhold federal and State income
30    taxes  based  upon  contributions made under Section 13-304.1
31    until the Internal Revenue Service or the federal courts rule
32    that pursuant to Section 414(h) of the U.S. Internal  Revenue
33    Code  of  1986,  as amended, these contributions shall not be
34    included as gross income of the employee until such  time  as
 
HB5168 Enrolled            -117-               LRB9212225EGfg
 1    they are distributed or made available.
 2        (e)  Each  employee is deemed to consent and agree to the
 3    deductions from compensation provided for in this Article.
 4    (Source: P.A. 87-794.)

 5        (40 ILCS 5/13-503) (from Ch. 108 1/2, par. 13-503)
 6        Sec. 13-503.  Tax levy.  The Water  Reclamation  District
 7    shall  annually levy a tax upon all the taxable real property
 8    within the District at a  rate  which,  when  extended,  will
 9    produce  a  sum  that  (i) when added to the amounts deducted
10    from  the  salaries  of   employees,   interest   income   on
11    investments, and other income, will be sufficient to meet the
12    requirements  of the Fund on an actuarially funded basis, but
13    (ii) shall not exceed an amount equal to the total amount  of
14    contributions  by  the  employees  to  the  Fund  made in the
15    calendar year 2  years prior to the year for which the tax is
16    levied,  multiplied  by  2.19,  except  that  the  amount  of
17    employee contributions made  on  or  after  January  1,  2003
18    towards  the  purchase  of additional optional benefits under
19    Section 13-304.1 shall only be multiplied by 1.00.   The  tax
20    shall  be  levied  and  collected  in  the same manner as the
21    general taxes of the District.
22        The tax shall be exclusive of  and  in  addition  to  the
23    amount  of  tax  the  District  is  now  or  may hereafter be
24    authorized  to  levy   for   general   purposes   under   the
25    Metropolitan  Water  Reclamation  District  Act  or under any
26    other laws which may limit the  amount  of  tax  for  general
27    purposes.   The  county  clerk of any county, in reducing tax
28    levies as may be authorized by law, shall  not  consider  any
29    such  tax  as  a  part  of  the general tax levy for District
30    purposes, and shall not include the same in any limitation of
31    the percent of the assessed valuation upon  which  taxes  are
32    required to be extended.
33        Revenues  derived  from the tax shall be paid to the Fund
 
HB5168 Enrolled            -118-               LRB9212225EGfg
 1    for the benefit of the Fund.
 2        If the funds available for the purposes of  this  Article
 3    are  insufficient during any year to meet the requirements of
 4    this  Article,  the  District  may  issue  tax   anticipation
 5    warrants  or  notes,  as provided by law, against the current
 6    tax levy.
 7        The  Board  shall  submit  annually  to  the   Board   of
 8    Commissioners  of  the  District  an  estimate  of the amount
 9    required to be raised by taxation for  the  purposes  of  the
10    Fund.   The  Board of Commissioners shall review the estimate
11    and determine the tax to be levied for such purposes.
12    (Source: P.A. 87-794.)

13        (40 ILCS 5/14-105.7)
14        Sec. 14-105.7. Transfer to Article 9 fund.
15        (a)  Until July 1, 2003  1998,  any  active  or  inactive
16    member  of  the System who has established creditable service
17    under  paragraph  (i)  of   Section   14-104   (relating   to
18    contractual service to the General Assembly) and is an active
19    or  former  contributor to the pension fund established under
20    Article 9 of this Code may apply to the Board for transfer of
21    all of his or her creditable service accumulated  under  this
22    System  to  the Article 9 fund.  The creditable service shall
23    be transferred forthwith.  Payment  by  this  System  to  the
24    Article  9  fund  shall  be  made  at the same time and shall
25    consist of:
26             (1)  the amounts accumulated to the  credit  of  the
27        applicant  for  that service, including regular interest,
28        on the books of the System on the date of transfer; plus
29             (2)  employer contributions in an  amount  equal  to
30        the amount determined under item (1).
31    Participation  in  this  System as to the credits transferred
32    under this Section terminates on the date of transfer.
33        (b)  Any person transferring credit  under  this  Section
 
HB5168 Enrolled            -119-               LRB9212225EGfg
 1    may  reinstate credits and creditable service terminated upon
 2    receipt of a refund, by paying to the System, before July  1,
 3    2003  1998,  the  amount  of the refund plus regular interest
 4    from the date of refund to the date of payment.
 5        (c)  The changes to this  Section  and  Section  9-121.15
 6    made  by  this  amendatory  Act  of the 92nd General Assembly
 7    apply without regard to  whether  the  person  is  in  active
 8    service, under this System or the Article 9 Fund, on or after
 9    the effective date of this amendatory Act.
10    (Source: P.A. 90-511, eff. 8-22-97.)

11        (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
12        Sec.  15-112.   Final  rate  of earnings.  "Final rate of
13    earnings":  For an employee who is paid on an hourly basis or
14    who receives an  annual  salary  in  installments  during  12
15    months  of  each  academic  year, the average annual earnings
16    during the 48 consecutive calendar month period  ending  with
17    the  last  day  of  final  termination of employment or the 4
18    consecutive academic years of service in which the employee's
19    earnings were the highest, whichever is  greater.    For  any
20    other  employee,  the  average  annual  earnings during the 4
21    consecutive academic years of service in  which  his  or  her
22    earnings were the highest.  For an employee with less than 48
23    months  or  4  consecutive  academic  years  of  service, the
24    average earnings during his or her entire period of service.
25    The earnings of an employee  with  more  than  36  months  of
26    service  prior to the date of becoming a participant are, for
27    such period, considered equal to the average earnings  during
28    the last 36 months of such service.  For an employee on leave
29    of  absence  with pay, or on leave of absence without pay who
30    makes contributions during such leave, earnings  are  assumed
31    to  be  equal to the basic compensation on the date the leave
32    began.  For an employee on  disability  leave,  earnings  are
33    assumed  to  be  equal  to the basic compensation on the date
 
HB5168 Enrolled            -120-               LRB9212225EGfg
 1    disability occurs or  the  average  earnings  during  the  24
 2    months  immediately  preceding  the month in which disability
 3    occurs, whichever is greater.
 4        For a participant who retires on or after  the  effective
 5    date of this amendatory Act of 1997 with at least 20 years of
 6    service  as  a  firefighter  or  police  officer  under  this
 7    Article,  the final rate of earnings shall be the annual rate
 8    of earnings received by the participant on his  or  her  last
 9    day as a firefighter or police officer under this Article, if
10    that is greater than the final rate of earnings as calculated
11    under the other provisions of this Section.
12        If  a  participant  is  an employee for at least 6 months
13    during the academic year in which his or  her  employment  is
14    terminated, the annual final rate of earnings shall be 25% of
15    the  sum  of (1) the annual basic compensation for that year,
16    and (2) the amount earned during the  36  months  immediately
17    preceding  that  year, if this is greater than the final rate
18    of earnings as calculated under the other provisions of  this
19    Section.
20        In the determination of the final rate of earnings for an
21    employee,  that  part  of  an  employee's  earnings  for  any
22    academic  year  beginning  after June 30, 1997, which exceeds
23    the employee's earnings with that employer for the  preceding
24    year  by more than 20 percent shall be excluded; in the event
25    that an employee has more than one employer  this  limitation
26    shall  be  calculated  separately  for the earnings with each
27    employer.   In  making  such  calculation,  only  the   basic
28    compensation of employees shall be considered, without regard
29    to   vacation   or   overtime  or  to  contracts  for  summer
30    employment.
31        The  following  are  not  considered   as   earnings   in
32    determining  final  rate of earnings: severance or separation
33    pay, retirement pay, payment for in lieu of unused sick leave
34    and  payments  from  an  employer  for  the  period  used  in
 
HB5168 Enrolled            -121-               LRB9212225EGfg
 1    determining final rate of earnings for any purpose other than
 2    services rendered,  leave  of  absence  or  vacation  granted
 3    during  that  period,  and  vacation  of  up  to 56 work days
 4    allowed upon termination of employment; except that,  if  the
 5    benefit  has been collectively bargained between the employer
 6    and the recognized collective bargaining  agent  pursuant  to
 7    the   Illinois   Educational  Labor  Relations  Act,  payment
 8    received during a period of up to 2 academic years for unused
 9    sick leave may be considered as earnings in  accordance  with
10    the  applicable  collective  bargaining agreement, subject to
11    the 20% increase limitation of this Section.  Any unused sick
12    leave considered as earnings under this Section shall not  be
13    taken  into  account  in  calculating  service  credit  under
14    Section 15-113.4.
15        Intermittent  periods  of  service shall be considered as
16    consecutive in determining final rate of earnings.
17    (Source: P.A.  90-65,  eff.  7-7-97;  90-511,  eff.  8-22-97;
18    91-887, eff. 7-6-00.)

19        (40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106)
20        Sec.    17-106.  Contributor,    member    or    teacher.
21    "Contributor",  "member"  or  "teacher":   All members of the
22    teaching force of the city, including  principals,  assistant
23    principals,  the  general  superintendent  of schools, deputy
24    superintendents  of  schools,  associate  superintendents  of
25    schools, assistant and district superintendents  of  schools,
26    members  of  the  Board of Examiners, all other persons whose
27    employment requires a teaching certificate issued  under  the
28    laws   governing   the   certification   of   teachers,   any
29    educational,  administrative,  professional,  or  other staff
30    employed in a charter school operating in compliance with the
31    Charter Schools Law who is certified under the law  governing
32    the  certification  of  teachers, and employees of the Board,
33    but excluding persons contributing concurrently to any  other
 
HB5168 Enrolled            -122-               LRB9212225EGfg
 1    public  employee  pension  system  in  Illinois  for the same
 2    employment or receiving  retirement  pensions  under  another
 3    Article  of  this  Code  for  that  same  employment, persons
 4    employed on an hourly basis, and persons  receiving  pensions
 5    from the Fund who are employed temporarily by an Employer for
 6    150  days  or  less  in  any school year and not on an annual
 7    basis.
 8        In the case of a person who has been making contributions
 9    and  otherwise  participating  in  this  Fund  prior  to  the
10    effective date of this amendatory Act  of  the  91st  General
11    Assembly,  and  whose  right  to  participate  in the Fund is
12    established or confirmed by this amendatory Act,  such  prior
13    participation   in  the  Fund,  including  all  contributions
14    previously made and service credits previously earned by  the
15    person, are hereby validated.
16        The  changes  made  to this Section and Section 17-149 by
17    this amendatory  Act  of  the  92nd  General  Assembly  apply
18    without  regard  to  whether  the person was in service on or
19    after  the   effective   date   of   this   amendatory   Act,
20    notwithstanding Sections 1-103.1 and 17-157.
21    (Source: P.A. 91-887, eff. 7-6-00; 92-416, eff. 8-17-01.)

22        (40 ILCS 5/17-119.1)
23        Sec. 17-119.1.  Optional increase in retirement annuity.
24        (a)  A  member  of the Fund may qualify for the augmented
25    rate under subdivision (b)(3) of Section 17-116 for all years
26    of creditable service earned before July 1,  1998  by  making
27    the optional contribution specified in subsection (b); except
28    that  a  member  who retires on or after July 1, 1998 with at
29    least 30 years of creditable service at retirement  qualifies
30    for  the augmented rate without making any contribution under
31    subsection (b).  Any member who retires on or after  July  1,
32    1998  and before the effective date of this amendatory Act of
33    the  92nd  General  Assembly  with  at  least  30  years   of
 
HB5168 Enrolled            -123-               LRB9212225EGfg
 1    creditable  service  shall  be  paid  a lump sum equal to the
 2    amount he or she would have received under the augmented rate
 3    minus the amount he or she actually received.  A  member  may
 4    not  elect  to  qualify  for  the  augmented  rate for only a
 5    portion of his or her creditable service earned  before  July
 6    1, 1998.
 7        (b)  The contribution shall be an amount equal to 1.0% of
 8    the  member's highest salary rate in the 4 consecutive school
 9    years immediately prior to but not including the school  year
10    in  which the application occurs, multiplied by the number of
11    years of creditable service earned by the member before  July
12    1, 1998 or 20, whichever is less.  This contribution shall be
13    reduced by 1.0% of that salary rate for every 3 full years of
14    creditable  service earned by the member after June 30, 1998.
15    The contribution shall be further reduced at the rate of  25%
16    of  the  contribution  (as reduced for service after June 30,
17    1998) for each year of the member's total creditable  service
18    in  excess  of  34  years.  The contribution shall not in any
19    event exceed 20% of that salary rate.
20        The member shall pay  to  the  Fund  the  amount  of  the
21    contribution  as  calculated at the time of application under
22    this Section.  The  amount  of  the  contribution  determined
23    under  this  subsection  shall be recalculated at the time of
24    retirement, and if the Fund determines that the  amount  paid
25    by the member exceeds the recalculated amount, the Fund shall
26    refund  the  difference  to  the member with regular interest
27    from the date of payment to the date of refund.
28        The contribution required by  this  subsection  shall  be
29    paid  in one of the following ways or in a combination of the
30    following ways that does not extend over more than 5 years:
31             (i)  in  a  lump  sum  on  or  before  the  date  of
32        retirement;
33             (ii)  in substantially  equal  installments  over  a
34        period of time not to exceed 5 years, as a deduction from
 
HB5168 Enrolled            -124-               LRB9212225EGfg
 1        salary in accordance with Section 17-130.2;
 2             (iii)  if  the  member  becomes  an annuitant before
 3        June   30,   2003,   in   substantially   equal   monthly
 4        installments over a 24-month period, by a deduction  from
 5        the annuitant's monthly benefit.
 6        (c)  If  the  member  fails to make the full contribution
 7    under this Section in a timely  fashion,  the  payments  made
 8    under  this  Section shall be refunded to the member, without
 9    interest.  If the member (including a member who  has  become
10    an  annuitant)  dies before making the full contribution, the
11    payments made under this Section shall  be  refunded  to  the
12    member's  designated beneficiary if there is no survivor's or
13    children's pension benefit payable.  If there is a survivor's
14    or children's benefit payable, then all payments  made  under
15    this  Section  shall  be  retained  by  the Fund and all such
16    survivor's or children's benefits payable shall be calculated
17    as if all contributions required under this Section have been
18    paid in full.
19        (d)  For purposes of this Section and subsection  (b)  of
20    Section  17-116, optional creditable service established by a
21    member shall be deemed to have been earned at the time of the
22    employment or other qualifying event upon which  the  service
23    is  based, rather than at the time the credit was established
24    in this Fund.
25        (e)  The contributions required under  this  Section  are
26    the  responsibility  of  the  teacher  and  not the teacher's
27    employer.  However, an employer of teachers  may  3ay,  after
28    the   effective   date   of  this  amendatory  Act  of  1998,
29    specifically  agree,   through   collective   bargaining   or
30    otherwise, to make the contributions required by this Section
31    on behalf of those teachers.
32    (Source:  P.A.  91-17,  eff.  6-4-99;  92-416,  eff. 8-17-01;
33    revised 10-4-01.)
 
HB5168 Enrolled            -125-               LRB9212225EGfg
 1        (40 ILCS 5/17-121) (from Ch. 108 1/2, par. 17-121)
 2        Sec.  17-121.  Survivor's  and  Children's   pensions   -
 3    Eligibility.
 4        (a)  A surviving spouse of a teacher shall be entitled to
 5    a  survivor's  pension  only  if  the surviving spouse he was
 6    married to the teacher contributor  for  at  least  one  year
 7    1 1/2  years  immediately prior to the teacher's his death or
 8    retirement, whichever first occurs, and also on the  date  of
 9    the last termination of his service.
10        The   changes   made  to  this  subsection  (a)  by  this
11    amendatory Act of the 92nd General Assembly apply (i) only to
12    the surviving spouse of a person who dies  on  or  after  the
13    effective date of this amendatory Act, and only if the amount
14    of  any  refund  of  contributions  for survivor's pension is
15    repaid with interest in accordance with subsection  (f),  and
16    (ii)  notwithstanding  Section  17-157  and without regard to
17    whether the deceased person was in service on  or  after  the
18    effective date of this amendatory Act.
19        (b)  If  the  surviving  spouse is under age 50 and there
20    are no eligible minor children born to or legally adopted  by
21    the  contributor  and his or her surviving spouse, payment of
22    the survivor's pension shall begin when the surviving  spouse
23    attains age 50.
24        (c)  Beginning  January  1,  2003,  the  remarriage  of a
25    surviving spouse at any age does not  terminate  his  or  her
26    survivor's pension.
27        A   surviving   spouse   whose   survivor's  pension  (or
28    expectation of a survivor's pension upon  attainment  of  age
29    50)  was  terminated before January 1, 2003 due to remarriage
30    and who applies for reinstatement of that pension and  repays
31    the  amount  of  any  refund  of contributions for survivor's
32    pension with interest in accordance with subsection (f) shall
33    be entitled to have the survivor's pension (or expectation of
34    a survivor's pension upon attainment of age  50)  reinstated.
 
HB5168 Enrolled            -126-               LRB9212225EGfg
 1    The reinstated pension shall begin to accrue on the first day
 2    of the month following the month in which the application and
 3    repayment,  if any, are received by the Fund, but in no event
 4    sooner than January 1, 2003 and, if subsection  (b)  applies,
 5    no  sooner  than  upon  attainment of age 50.  The reinstated
 6    pension shall include any one-time or annual increases in the
 7    survivor's pension received prior to the date of termination,
 8    but not any increases that would otherwise have accrued  from
 9    the date of termination to the date of reinstatement.
10        This   subsection  (c)  applies  notwithstanding  Section
11    17-157 and without regard to whether the deceased teacher was
12    in service on or after the effective date of this  amendatory
13    Act of the 92nd General Assembly.
14        (d)  Except  as provided in subsection (c), remarriage of
15    the surviving spouse prior to  September  1,  1983  while  in
16    receipt  of  a survivor's pension shall permanently terminate
17    payment thereof,  regardless  of  any  subsequent  change  in
18    marital   status;   however,  beginning  September  1,  1983,
19    remarriage of a surviving spouse after attainment of  age  55
20    shall not terminate the survivor's pension.
21        A  surviving  spouse  whose  pension was terminated on or
22    after September 1, 1983 due to remarriage after attainment of
23    age 55, and who applies for  reinstatement  of  that  pension
24    before January 1, 1990, shall be entitled to have the pension
25    reinstated effective January 1, 1990.
26        (e)  A  surviving  spouse  of a member or annuitant under
27    this Fund who is  also  a  dependent  beneficiary  under  the
28    provisions  of  Section  16-140  is eligible for a reciprocal
29    survivor's pension, provided that any  refund  of  survivor's
30    pension  contributions  is repaid to the Fund and application
31    is made within 30 days  after  the  effective  date  of  this
32    amendatory Act of the 92nd General Assembly.
33        (f)  If  a refund of contributions for survivor's pension
34    has been paid, a person choosing to establish or  reestablish
 
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 1    the  right  to  receive  a survivor's pension pursuant to the
 2    changes made to this Section by this amendatory  Act  of  the
 3    92nd General Assembly must first repay to the Fund the amount
 4    of  the  refund  of  contributions  for  survivor's  pension,
 5    together  with  interest  thereon at the rate of 5% per year,
 6    compounded annually, from the date of the refund to the  date
 7    of repayment.
 8    (Source: P.A. 92-416, eff. 8-17-01.)

 9        (40 ILCS 5/17-134) (from Ch. 108 1/2, par. 17-134)
10        Sec.   17-134.   Contributions  for  leaves  of  absence;
11    military service; computing service.   In  computing  service
12    for  pension  purposes the following periods of service shall
13    stand in lieu of a like number of years of  teaching  service
14    upon payment therefor in the manner hereinafter provided: (a)
15    time spent on a leave sabbatical leaves of absence granted by
16    the  employer,  sick leaves or maternity or paternity leaves;
17    (b) service with teacher or labor  organizations  based  upon
18    special  leaves  of  absence therefor granted by an Employer;
19    (c) a maximum of 5 years spent in the military service of the
20    United States, of which up to 2 years may  have  been  served
21    outside   the   pension  period;  (d)  unused  sick  days  at
22    termination of service to a maximum of  244  days;  (e)  time
23    lost  due  to  layoff and curtailment of the school term from
24    June 6 through June 21, 1976; and (f) time spent  after  June
25    30,  1982  as a member of the Board of Education, if required
26    to resign from an administrative  or  teaching   position  in
27    order to qualify as a member of the Board of Education.
28             (1)  For time spent on or after September 6, 1948 on
29        sabbatical  leaves  of  absence or sick leaves, for which
30        salaries  are  paid,  an  Employer  shall  make   payroll
31        deductions  at the applicable rates in effect during such
32        periods.
33             (2)  For time spent on a leave of absence granted by
 
HB5168 Enrolled            -128-               LRB9212225EGfg
 1        the employer sabbatical or sick leaves commencing  on  or
 2        after  September 1, 1961, and for time spent on maternity
 3        or paternity leaves, for  which  no  salaries  are  paid,
 4        teachers  desiring credit therefor shall pay the required
 5        contributions at the rates in effect during such  periods
 6        as  though they were in teaching service.  If an Employer
 7        pays salary for vacations which occur during a  teacher's
 8        sick  leave  or  maternity  or  paternity  leave  without
 9        salary,  vacation  pay  for  which the teacher would have
10        qualified while in active  service  shall  be  considered
11        part  of the teacher's total salary for pension purposes.
12        No more than 36 12 months of sick leave or  maternity  or
13        paternity  leave  credit may be allowed any person during
14        the entire term  of  service.   Sabbatical  leave  credit
15        shall  be limited to the time the person on leave without
16        salary under an Employer's rules is allowed to engage  in
17        an activity for which he receives salary or compensation.
18             (3)  For  time  spent prior to September 6, 1948, on
19        sabbatical leaves of absence or  sick  leaves  for  which
20        salaries  were  paid,  teachers  desiring  service credit
21        therefor shall pay  the  required  contributions  at  the
22        maximum applicable rates in effect during such periods.
23             (4)  For service with teacher or labor organizations
24        authorized  by  special  leaves  of absence, for which no
25        payroll deductions are  made  by  an  Employer,  teachers
26        desiring  service credit therefor shall contribute to the
27        Fund upon the basis of the actual  salary  received  from
28        such  organizations  at  the  percentage  rates in effect
29        during such periods for  certified  positions  with  such
30        Employer.   To  the  extent the actual salary exceeds the
31        regular salary, which shall  be  defined  as  the  salary
32        rate,  as  calculated  by  the  Board,  in effect for the
33        teacher's  regular  position  in  teaching   service   on
34        September  1,  1983 or on the effective date of the leave
 
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 1        with  the   organization,   whichever   is   later,   the
 2        organization  shall pay to the Fund the employer's normal
 3        cost as set by the Board on the increment.
 4             (5)  For  time  spent  in  the   military   service,
 5        teachers  entitled  to and desiring credit therefor shall
 6        contribute the amount required for each year  of  service
 7        or fraction thereof at the rates in force (a) at the date
 8        oF appointment, or (b) on return to teaching service as a
 9        regularly certified teacher, as the case may be; provided
10        such  rates  shall  not  be  less  than  $450 per year of
11        service.  These conditions shall apply unless an Employer
12        elects to and does pay into the  Fund  the  amount  which
13        would have been due from such person had he been employed
14        as a teacher during such time.  In the case of credit for
15        military  service  not  during  the  pension  period, the
16        teacher must also pay to the Fund an amount determined by
17        the Board to be equal to the employer's  normal  cost  of
18        the  benefits  accrued  from  such service, plus interest
19        thereon at 5% per year,  compounded  annually,  from  the
20        date of appointment to the date of payment.
21             The  changes  to  this  Section  made  by Public Act
22        87-795 shall apply not only to persons who  on  or  after
23        its  effective  date  are  in service under the Fund, but
24        also to persons whose  status  as  a  teacher  terminated
25        prior  to  that  date,  whether  or  not the person is an
26        annuitant on that date.  In the case of an annuitant  who
27        applies  for  credit  allowable  under this Section for a
28        period of  military  service  that  did  not  immediately
29        follow   employment,   and  who  has  made  the  required
30        contributions for  such  credit,  the  annuity  shall  be
31        recalculated  to  include  the additional service credit,
32        with the increase taking effect  on  the  date  the  Fund
33        received  written  notification of the annuitant's intent
34        to purchase the credit, if payment of  all  the  required
 
HB5168 Enrolled            -130-               LRB9212225EGfg
 1        contributions  is  made within 60 days of such notice, or
 2        else on the first annuity payment date following the date
 3        of payment of the required contributions.  In calculating
 4        the automatic annual increase for  an  annuity  that  has
 5        been   recalculated  under  this  Section,  the  increase
 6        attributable to the additional  service  allowable  under
 7        this  amendatory  Act  of  1991  shall be included in the
 8        calculation of automatic annual increases accruing  after
 9        the effective date of the recalculation.
10             The  total  credit  for  military  service shall not
11        exceed 5 years, except that any teacher who  on  July  1,
12        1963,  had  validated  credit  for  more  than 5 years of
13        military service shall be entitled to the total amount of
14        such credit.
15             (6)  A maximum of 244 unused sick days  credited  to
16        his  account by an Employer on the date of termination of
17        employment.  Members, upon verification  of  unused  sick
18        days,  may  add  this  service  time  to total creditable
19        service.
20             (7)  In all cases  where  time  spent  on  leave  is
21        creditable and no payroll deductions therefor are made by
22        an  Employer,  persons desiring service credit shall make
23        the required contributions directly to the Fund.
24             (8)  For time lost without pay  due  to  layoff  and
25        curtailment  of  the school term from June 6 through June
26        21, 1976, as provided in item (e) of the first  paragraph
27        of  this  Section,  persons  who were contributors on the
28        days immediately  preceding  such  layoff  shall  receive
29        credit  upon  paying  to the Fund a contribution based on
30        the rates of compensation and employee  contributions  in
31        effect  at  the  time  of  such  layoff, together with an
32        additional amount equal  to  12.2%  of  the  compensation
33        computed  for such period of layoff, plus interest on the
34        entire amount at 5% per annum from January 1, 1978 to the
 
HB5168 Enrolled            -131-               LRB9212225EGfg
 1        date of payment.  If such contribution  is  paid,  salary
 2        for  pension purposes for any year in which such a layoff
 3        occurred shall include the  compensation  recognized  for
 4        purposes of computing that contribution.
 5             (9)  For  time  spent  after  June  30,  1982,  as a
 6        nonsalaried member of the Board of Education, if required
 7        to resign from an administrative or teaching position  in
 8        order  to  qualify as a member of the Board of Education,
 9        an administrator  or  teacher  desiring  credit  therefor
10        shall  pay  the  required  contributions at the rates and
11        salaries in effect during  such  periods  as  though  the
12        member were in service.
13        Effective  September  1,  1974,  the interest charged for
14    validation of service described in paragraphs (2) through (5)
15    of this Section shall be compounded annually at a rate of  5%
16    commencing  one  year  after  the termination of the leave or
17    return to service.
18    (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)

19        (40 ILCS 5/17-149) (from Ch. 108 1/2, par. 17-149)
20        Sec. 17-149.  Cancellation of pensions.
21        (a)  If any person  receiving  a  service  or  disability
22    retirement  pension from the Fund is re-employed as a teacher
23    by an Employer, the pension shall be cancelled  on  the  date
24    the  re-employment  begins,  or on the first day of a payroll
25    period for which service credit was validated,  whichever  is
26    earlier.
27        (b)  If any person receiving a service retirement pension
28    from  the  Fund is re-employed as a teacher on a permanent or
29    annual basis by an Employer, the pension shall  be  cancelled
30    on  the date the re-employment begins, or on the first day of
31    a payroll period for  which  service  credit  was  validated,
32    whichever  is  earlier.   However,  the  pension shall not be
33    cancelled in the case of a service retirement  pensioner  who
 
HB5168 Enrolled            -132-               LRB9212225EGfg
 1    is  temporarily  re-employed  on  a  temporary and non-annual
 2    basis for not more than 150 days during any school year or on
 3    an hourly basis., provided the  pensioner  does  not  receive
 4    salary in any school year of an amount more than that payable
 5    to  a substitute teacher for 150 days' employment.  A service
 6    retirement pensioner who is temporarily re-employed  for  not
 7    more  than  150  days  during any school year or on an hourly
 8    basis shall be entitled, at the end of the school year, to  a
 9    refund  of  any  contributions  made  to the Fund during that
10    school year.
11        If the pensioner does receive salary from an Employer  in
12    any  school  year  for  more  than  150 days' employment, the
13    pensioner shall be deemed to have returned to service on  the
14    first  day  of  employment  as  a  pensioner-substitute.  The
15    pensioner shall  reimburse  the  Fund  for  pension  payments
16    received  after  the  return  to service and shall pay to the
17    Fund the participant's contributions  prescribed  in  Section
18    17-130 of this Article.
19        (c)  If  the  date  of  re-employment  on  a permanent or
20    annual basis occurs within 5 school months after the date  of
21    previous  retirement,  exclusive  of any vacation period, the
22    member shall be deemed to  have  been  out  of  service  only
23    temporarily  and  not permanently retired.  Such person shall
24    be entitled to pension payments for the time  he  could  have
25    been employed as a teacher and received salary, but shall not
26    be  entitled  to  pension  for  or during the summer vacation
27    prior to his return to service.
28        When the member again retires on  pension,  the  time  of
29    service and the money contributed by him during re-employment
30    shall  be  added  to  the time and money previously credited.
31    Such person must acquire 3 consecutive  years  of  additional
32    contributing  service before he may retire again on a pension
33    at a rate and under conditions other than those in  force  or
34    attained at the time of his previous retirement.
 
HB5168 Enrolled            -133-               LRB9212225EGfg
 1        (d)  Notwithstanding  Sections  1-103.1  and  17-157, the
 2    changes to this Section made by Public  this  amendatory  Act
 3    90-32   of   1997  shall  apply  without  regard  to  whether
 4    termination of service occurred before the effective date  of
 5    that  this  amendatory  Act  and shall apply retroactively to
 6    August 23, 1989.
 7        Notwithstanding Sections 1-103.1 and 17-157, the  changes
 8    to  this  Section  and Section 17-106 made by this amendatory
 9    Act of the 92nd General  Assembly  apply  without  regard  to
10    whether  termination of service occurred before the effective
11    date of this amendatory Act.
12    (Source: P.A. 92-416, eff. 8-17-01.)

13        Section 90.  The State Mandates Act is amended by  adding
14    Section 8.26 as follows:

15        (30 ILCS 805/8.26 new)
16        Sec.  8.26.  Exempt  mandate.  Notwithstanding Sections 6
17    and 8 of this Act, no reimbursement by the State is  required
18    for  the  implementation  of  any  mandate  created  by  this
19    amendatory Act of the 92nd General Assembly.

20        Section  99.  Effective date.  This Act takes effect upon
21    becoming law.
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State of Illinois 92nd General Assembly Legislation

State of Illinois
92^nd General Assembly
Legislation
