Public Act 095-0369
 		





SB0377 Enrolled
LRB095 06757 AMC 26872 b






    AN ACT concerning public employee benefits.

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


 
    Section 5. The Illinois Pension Code is amended  by changing 
Sections 9-121.6, 9-133, 9-133.1, 9-166, 9-169, 9-179.3, 
9-182, 9-199, 9-204, 15-106, and 15-107 and by adding 9-134.5 
and 10-104.5 as follows:
 



    (40 ILCS 5/9-121.6)  (from Ch. 108 1/2, par. 9-121.6)



    Sec. 9-121.6. Alternative annuity for county officers. (a) 
Any
county officer elected by vote of the people may elect to 
establish
alternative credits for an alternative annuity by 
electing in writing to
make additional optional contributions 
in accordance with this Section and
procedures established by 
the board. Such elected county officer
may discontinue making 
the additional optional contributions by notifying
the Fund in 
writing in accordance with this Section and procedures

established by the board.

    Additional optional contributions for the alternative 
annuity shall
be as follows:

    (1) For service after the option is elected, an additional 
contribution
of 3% of salary shall be contributed to the Fund 
on the same basis and
under the same conditions as 
contributions required under Sections 9-170
and 9-176.

    (2) For service before the option is elected, an additional

contribution of 3% of the salary for the applicable period of 
service, plus
interest at the effective rate from the date of 
service to the date of
payment.  All payments for past service 
must be paid in full before credit
is given.  No additional 
optional contributions may be made for any period
of service 
for which credit has been previously forfeited by acceptance of

a refund, unless the refund is repaid in full with interest at 
the
effective rate from the date of refund to the date of 
repayment.

    (b) In lieu of the retirement annuity otherwise payable 
under this
Article, any county officer elected by vote of the 
people who (1) has
elected to participate in the Fund and make 
additional optional
contributions in accordance with this 
Section, and (2)
has attained age 60 with at least 10 years of 
service credit,
or has attained age 65 with at least 8 years of 
service credit, may elect
to have his retirement annuity 
computed as follows:  3% of the
participant's salary at the time 
of termination of service for each of the
first 8 years of 
service credit, plus 4% of such salary for each of the
next 4 
years of service credit, plus
5% of such salary for each year 
of service credit in excess of 12 years,
subject to a maximum 
of 80% of such salary.  To the extent such elected
county 
officer has made additional optional contributions with 
respect to
only a portion of his years of service credit, his 
retirement annuity will
first be determined in accordance with 
this Section to the extent such
additional optional 
contributions were made, and then in accordance with
the 
remaining Sections of this Article to the extent of years of 
service
credit with respect to which additional optional 
contributions were not made.

    (c) In lieu of the disability benefits otherwise payable 
under this
Article, any county officer elected by vote of the 
people who (1) has
elected to participate in the Fund, and (2) 
has become
permanently disabled and as a consequence is unable 
to perform the duties
of his office, and (3) was making 
optional contributions in accordance with
this Section at the 
time the disability was incurred, may elect to receive
a 
disability annuity calculated in
accordance with the formula in 
subsection (b).  For the purposes of this
subsection, such 
elected county officer shall be considered permanently

disabled only if:  (i) disability occurs while in service as an 
elected
county officer and is of such a nature as to prevent 
him from reasonably
performing the duties of his office at the 
time; and (ii)  the board has
received a written certification 
by at least 2 licensed physicians
appointed by it stating that 
such officer is disabled and that the
disability is likely to 
be permanent.

    (d) Refunds of additional optional contributions shall be 
made on the
same basis and under the same conditions as 
provided under Section 9-164,
9-166 and 9-167. Interest shall 
be credited at the effective rate on the
same basis and under 
the same conditions as for other contributions.
Optional 
contributions shall be accounted for in a separate Elected 
County
Officer Optional Contribution Reserve.  Optional 
contributions under this
Section shall be included in the 
amount of employee contributions used to
compute the tax levy 
under Section 9-169.

    (e) The effective date of this plan of optional alternative 
benefits
and contributions shall be January 1, 1988, or the 
date upon which
approval is received from the U.S. Internal 
Revenue Service, whichever is
later.  The plan of optional 
alternative benefits and contributions shall
not be available 
to any former county officer or employee receiving an
annuity 
from the Fund on the effective date of the plan, unless he

re-enters service as an elected county officer and renders at 
least 3 years
of additional service after the date of re-entry.

(Source: P.A. 85-964.)

 



    (40 ILCS 5/9-133)  (from Ch. 108 1/2, par. 9-133)



    Sec. 9-133. Automatic increase in annuity. 

    (a) An employee who retired or retires from service after 
December 31, 1959,
having attained age 60 or more or, beginning 
January 1, 1991, having attained
30 or more years of creditable 
service, shall, in the month of January of the
year following 
the year in which the first anniversary of retirement occurs,

have his then fixed and payable monthly annuity increased by 1 
1/2%, and such
first fixed annuity as granted at retirement 
increased by a further 1 1/2% in
January of each year 
thereafter.  Beginning with January of the year 1972, such

increases shall be at the rate of 2% in lieu of the aforesaid 
specified 1 1/2%.
Beginning with January of the year 1982, such 
increases shall be at the rate
of 3% in lieu of the aforesaid 
specified 2%.  Beginning January 1, 1998,
these increases shall 
be at the rate of 3% of the current amount of the
annuity, 
including any previous increases received under this Article,

without regard to whether the annuitant is in service on or 
after the
effective date of this amendatory Act of 1997.

    An employee who retires on
annuity before age 60 and, 
beginning January 1, 1991, with less than 30 years
of 
creditable service shall receive such increases beginning with 
January of
the year immediately following the year in which he 
attains the age of 60
years.  An employee who retires on annuity 
before age 60 and before January 1,
1991, with at least 30 
years of creditable service, shall be entitled to
receive the 
first increase under this subsection no later than January 1, 
1993.

    For an employee who, in accordance with the provisions of 
Section
9-108.1 of this Act, shall have become a member of the 
State System
established under Article 14 on February 1, 1974, 
the first such
automatic increase shall begin in January of 
1975.

    (b) Subsection (a) is not applicable to an employee 
retiring and receiving a
term annuity, as defined in this Act, 
nor to any otherwise qualified employee
who retires before he 
makes employee contributions (at the 1/2 of 1% rate as
provided 
in this Section) for this additional annuity for not less than 
the
equivalent of one full year.  Such employee, however, shall 
make arrangement to
pay to the fund a balance of such 
contributions, based on his final salary, as
will bring such 
1/2 of 1% contributions, computed without interest, to the

equivalent of one year's contributions.

    Beginning with the month of January, 1960, each employee 
shall
contribute by means of salary deductions 1/2 of 1% of 
each salary
payment, concurrently with and in addition to the 
employee contributions
otherwise provided for annuity 
purposes.

    Each such additional contribution shall be credited to an 
account in
the prior service annuity reserve, to be used, 
together with county
contributions, to defray the cost of the 
specified annuity increments.
Any balance in such account as of 
the beginning of each calendar year
shall be credited with 
interest at the rate of 3% per annum.

    Such additional employee contributions are not refundable, 
except to
an employee who withdraws and applies for refund 
under this Article, or
applies for annuity, and also in cases 
where a term annuity becomes
payable. In such cases his 
contributions shall be refunded, without
interest, and charged 
to the prior service annuity reserve.

(Source: P.A. 90-32, eff. 6-27-97.)

 



    (40 ILCS 5/9-133.1)  (from Ch. 108 1/2, par. 9-133.1)



    Sec. 9-133.1. Automatic increases in annuity for certain 
heretofore retired
participants.  A retired employee retired at 
age 55 or over and who (a) is
receiving annuity based on a 
service credit of 20 or more years, and (b) does
not qualify 
for the automatic increases in annuity provided for in Sec. 
9-133
of this Article, and (c) elects to make a contribution to 
the Fund at a
time and manner prescribed by the Retirement 
Board, of a sum equal to 1% of
the final average monthly salary 
forming the basis of the calculation of
their annuity 
multiplied by years of credited service, or 1% of their final

monthly salary multiplied by years of credited service in any 
case where
the final average salary is not used in the 
calculation, shall have his
original fixed and payable monthly 
amount of annuity increased in January
of the year following 
the year in which he attains the age of 65 years, if
such age of 
65 years is attained in the year 1969 or later, by an amount

equal to 1 1/2%, and by an equal additional 1 1/2% in January 
of each year
thereafter.  Beginning with January of the year 
1972, such increases shall
be at the rate of 2% in lieu of the 
aforesaid specified 1 1/2%.  Beginning
with January of the year 
1982, such increases shall be at the rate of 3%
in lieu of the 
aforesaid specified 2%.  Beginning January 1, 1998,
these 
increases shall be at the rate of 3% of the current amount of 
the
annuity, including any previous increases received under 
this Article,
without regard to whether the annuitant is in 
service on or after the
effective date of this amendatory Act 
of 1997.

    In those cases in which the retired employee receiving 
annuity has
attained the age of 66 or more years in the year 
1969, he shall have such
annuity increased in January of the 
year 1970 by an amount equal to 1 1/2%
multiplied by the number 
equal to the number of months of January elapsing
from and 
including January of the year immediately following the year he

attained the age of 65 years if retired at or prior to age 65, 
or from and
including January of the year immediately following 
the year of retirement
if retired at an age greater than 65 
years, to and including January of the
year 1970, and by an 
equal additional 1 1/2% in January of each year
thereafter. 
Beginning with January of the year 1972, such increases shall

be at the rate of 2% in lieu of the aforesaid specified 1 1/2%.  
Beginning
with January of the year 1982, such increases shall 
be at the rate of 3%
in lieu of the aforesaid specified 2%.  
Beginning January 1, 1998,
these increases shall be at the rate 
of 3% of the current amount of the
annuity, including any 
previous increases received under this Article,
without regard 
to whether the annuitant is in service on or after the

effective date of this amendatory Act of 1997.

    To defray the annual cost of such increases, the annual 
interest income
of the Fund, accruing from investments held by 
the Fund, exclusive of gains
or losses on sales or exchanges of 
assets during the year, over and above
4% a year, shall be used 
to the extent necessary and available to finance
the cost of 
such increases for the following year, and such amount shall be

transferred as of the end of each year, beginning with the year 
1969, to a
Fund account designated as the Supplementary Payment 
Reserve from the
Investment and Interest Reserve set forth in 
Sec. 9-214. The sums
contributed by annuitants as provided for 
in this Section shall also be
placed in the aforesaid 
Supplementary Payment Reserve and shall be applied
for and used 
for the purposes of such Fund account, together with the

aforesaid interest.

    In the event the monies in the Supplementary Payment 
Reserve in any year
arising from: (1) the available interest 
income as defined hereinbefore and
accruing in the preceding 
year above 4% a year and (2) the contributions by
retired 
persons, as set forth hereinbefore, are insufficient to make 
the
total payments to all persons estimated to be entitled to 
the annuity
increases specified hereinbefore, then (3) any 
interest earnings over 4% a
year beginning with the year 1969 
which were not previously used to finance
such increases and 
which were transferred to the Prior Service Annuity
Reserve may 
be used to the extent necessary and available to provide

sufficient funds to finance such increases for the current 
year, and such
sums shall be transferred from the Prior Service 
Annuity Reserve.

    In the event the total monies available in the 
Supplementary Payment
Reserve from the preceding indicated 
sources are insufficient to make the
total payments to all 
persons entitled to such increases for the year, a

proportionate amount computed as the ratio of the monies 
available to the
total of the total payments for that year 
shall be paid to each person for
that year.

    The Fund shall be obligated for the payment of the 
increases in annuity
as provided for in this Section only to 
the extent that the assets for such
purpose, as specified 
herein, are available.

(Source: P.A. 90-32, eff. 6-27-97.)

 
    (40 ILCS 5/9-134.5  new)
    Sec. 9-134.5. Alternative retirement cancellation payment.
    (a) To be eligible for the alternative retirement 
cancellation payment provided in this Section, a person must:
        (1) be a member of this Fund who, on December 31, 2006, 
    was (i) in active payroll status as an employee and 
    continuously employed in a position on and after the 
    effective date of this Section and (ii) an active 
    contributor to this Fund with respect to that employment;
        (2) have not previously received any retirement 
    annuity under this Article;
        (3) file with the Board on or before 45 days after the 
    effective date of this Section, a written application 
    requesting the alternative retirement cancellation payment 
    provided in this Section;

        (4) terminate employment under 
    this Article no later than 60 days after the effective date 
    of this Section.
        (4) if there is a QILDRO in effect against the person, 
    file with the Board the written consent of all alternate 
    payees under the QILDRO to the election of an alternative 
    retirement cancellation payment under this Section; and

    (b) In lieu of any retirement annuity or other benefit 
provided under this Article, a person who qualifies for and 
elects to receive the alternative retirement cancellation 
payment under this Section shall be entitled to receive a 
one-time lump sum retirement cancellation payment equal to the 
amount of his or her contributions to the Fund (including any 
employee contributions for optional service credit and 
including any employee contributions paid by the employer or 
credited to the employee during disability) on the date of 
termination, with regular interest, multiplied by 1.5.
    (c) Notwithstanding any other provision of this Article, a 
person who receives an alternative retirement cancellation 
payment under this Section thereby forfeits the right to any 
other retirement or disability benefit or refund under this 
Article, and no widow's, survivor's, or death benefit deriving 
from that person shall be payable under this Article. Upon 
accepting an alternative retirement cancellation payment under 
this Section, the person's creditable service and all other 
rights in the Fund are terminated for all purposes.
    (d) To the extent permitted by federal law, a person who 
receives an alternative retirement cancellation payment under 
this Section may direct the Fund to pay all or a portion of 
that payment as a rollover into another retirement plan or 
account qualified under the Internal Revenue Code of 1986, as 
amended.
    (e) Notwithstanding any other provision of this Article, a 
person who has received an alternative retirement cancellation 
payment under this Section and who reenters service under this 
Article must first repay to the Fund the amount by which that 
alternative retirement cancellation payment exceeded the 
amount of his or her refundable employee contributions with 
interest at 6% per annum. For the purposes of re-establishing 
creditable service that was terminated upon election of the 
alternative retirement cancellation payment, the portion of 
the alternative retirement cancellation payment representing 
refundable employee contributions shall be deemed a refund 
repayable in accordance with Section 9-163.
    (f) No individual who receives an alternative retirement 
cancellation payment under this Section may return to active 
payroll status within 365 days after separation from service to 
the employer.
 



    (40 ILCS 5/9-166)  (from Ch. 108 1/2, par. 9-166)



    Sec. 9-166. Refunds - When paid to beneficiary, children or 
estate. Whenever the total amount accumulated to the account of 
a deceased
employee from employee contributions for
annuity 
purposes, and from
employee contributions applied to any county 
pension fund superseded by
this fund, have not been paid to 
him, and in the case of a married male
employee to the employee 
and his widow together, in form of annuity or
refund before the 
death of the last of such persons, a refund shall be
payable as 
follows:

    An amount equal to the excess of such amounts over the 
amounts paid
on any annuity or annuities or refund, without 
interest upon either of
such amounts, shall be refunded to a 
beneficiary theretofore designated
by the employee in writing, 
signed by him before an officer authorized
to administer oaths, 
and filed with the board before the employee's
death.

    If there is no designated beneficiary or the beneficiary 
does not
survive the employee, the amount shall be refunded to 
the employee's
children, in equal parts with the children of a 
deceased child taking
the share of their parent. If there is no 
designated beneficiary or
children, the refund shall be paid to 
the administrator or executor of
the employee's estate.

    If an administrator or executor of the estate has not been 
appointed
within 90 days from the date the refund became 
payable the refund may be
applied in the discretion of the 
board toward the payment of the
employee's burial expenses. Any 
remaining balance shall be paid to the
heirs of the employee 
according to the law of descent and distribution
of this state 
but assuming for the purpose of such payment of refund and

determination of heirs that the deceased male employee left no 
widow
surviving in those cases where a widow eligible for 
widow's annuity as
his widow survived him and subsequently 
died; provided,

        (a) that if any child or children of the employee are 
    less than age
18, such part or all of any such amount 
    necessary to pay annuities to
them shall not be refunded as 
    hereinbefore stated but shall be
transferred to the child's 
    annuity reserve and used therein for the
payment of such 
    annuities; and provided further,

        (b) that if a reversionary annuity becomes payable as 
    provided in
Section 9-135 such refund shall not be paid 
    until the death of the
reversionary annuitant, and the 
    refund otherwise payable under this
section shall then 
    first further be reduced by the total amount of the

    reversionary annuity paid.

(Source: P.A. 81-1536.)

 



    (40 ILCS 5/9-169)  (from Ch. 108 1/2, par. 9-169)



    Sec. 9-169. Financing - Tax levy. (a) The county board 
shall levy a
tax annually upon all taxable property in the 
county at the rate that
will produce a sum which, when added to 
the amounts deducted from the salaries
of the employees or 
otherwise contributed by them is sufficient
for the 
requirements of this Article.

    For the years before 1962 the tax rate shall be as provided 
in "The
1925 Act". For the years 1962 and 1963 the tax rate 
shall be not more
than .0200 per cent; for the years 1964 and 
1965 the tax rate shall be
not more than .0202 per cent; for 
the years 1966 and 1967 the tax rate
shall be not more than 
.0207 per cent; for the year 1968 the tax rate
shall be not 
more than .0220 per cent; for the year 1969 the tax rate
shall 
be not more than .0233 per cent; for the year 1970 the tax rate

shall be not more than .0255 per cent; for the year 1971 the 
tax rate
shall be not more than .0268 per cent of the value, as 
equalized or
assessed by the Department of Revenue upon all 
taxable
property in the county. Beginning with the year 1972 
and for each year
thereafter the county shall levy a tax 
annually at a rate on the dollar
of the value, as equalized or 
assessed by the Department of Revenue
of all taxable property 
within the county that will
produce, when extended, not to 
exceed an amount equal to the total
amount of contributions 
made by the employees to the
fund in the calendar year 2 years 
prior to the year for which the annual
applicable tax is levied 
multiplied by .8 for the years 1972 through
1976; by .8 for the 
year 1977; by .87 for the year 1978; by .94 for the
year 1979; 
by 1.02 for the year 1980 and by 1.10 for the year 1981 and
by 
1.18 for the year 1982 and by 1.36 for the year 1983 and by 1.54 
for
the year 1984 and for each year thereafter.

    This tax shall be levied and collected in like manner with 
the
general taxes of the county, and shall be in addition to 
all other taxes
which the county is authorized to levy upon the 
aggregate valuation of
all taxable property within the county 
and shall be exclusive of and in
addition to the amount of tax 
the county is authorized to levy for
general purposes under any 
laws which may limit the amount of tax which
the county may 
levy for general purposes. The county clerk, in reducing
tax 
levies under any Act concerning the levy and extension of 
taxes,
shall not consider this tax as a part of the general tax 
levy for county
purposes, and shall not include it within any 
limitation of the per cent
of the assessed valuation upon which 
taxes are required to be extended
for the county. It is lawful 
to extend this tax in addition to the
general county rate fixed 
by statute, without being authorized as
additional by a vote of 
the people of the county.

    Revenues derived from this tax shall be paid to the 
treasurer of the
county and held by him for the benefit of the 
fund.

    If the payments on account of taxes are insufficient during 
any year
to meet the requirements of this Article, the county 
may issue tax
anticipation warrants against the current tax 
levy.

    (b) By January 10, annually, the board shall notify the 
county board
of the requirement of this Article that this tax 
shall be levied. The
board shall compute the amounts necessary 
for the purposes of the fund
for that current year to be 
credited to the reserves established and
maintained as provided 
in this Act, shall make an annual determination
of the required 
county contributions, and shall certify the results
thereof to 
the county board.

    (c) The various sums to be contributed by the county board 
and
allocated for the purposes of this Article and any interest 
to be
contributed by the county shall be taken from the revenue 
derived from
this tax and no money of the county derived from 
any source other than
the levy and collection of this tax or 
the sale of tax anticipation
warrants, except state or federal 
funds contributed for annuity and
benefit purposes for 
employees of a county department of public aid
under "The 
Illinois Public Aid Code", approved April 11, 1967, as now or

hereafter amended, may be used to provide revenue for the fund.

    If it is not possible or practicable for the county to make

contributions for age and service annuity and widow's annuity

concurrently with the employee contributions made for such 
purposes,
such county shall make such contributions as soon as 
possible and
practicable thereafter with interest thereon at 
the effective rate until
the time it shall be made.

    (d) With respect to employees whose wages are funded as 
participants
under the Comprehensive Employment and Training 
Act of 1973, as amended
(P.L. 93-203, 87 Stat. 839, P.L. 
93-567, 88 Stat. 1845), hereinafter
referred to as CETA, 
subsequent to October 1, 1978, and in instances
where the board 
has elected to establish a manpower program reserve, the
board 
shall compute the amounts necessary to be credited to the 
manpower
program reserves established and maintained as herein 
provided, and
shall make a periodic determination of the amount 
of required
contributions from the County to the reserve to be 
reimbursed by the
federal government in accordance with rules 
and regulations established
by the Secretary of the United 
States Department of Labor or his
designee, and certify the 
results thereof to the County Board. Any such
amounts shall 
become a credit to the County and will be used to reduce
the 
amount which the County would otherwise contribute during 
succeeding
years for all employees.

    (e) In lieu of establishing a manpower program reserve with 
respect
to employees whose wages are funded as participants 
under the
Comprehensive Employment and Training Act of 1973, as 
authorized by
subsection (d), the board may elect to establish 
a special County
contribution rate for all such employees. If 
this option is elected, the
County shall contribute to the Fund 
from federal funds provided under
the Comprehensive Employment 
and Training Act program at the special
rate so established and 
such contributions shall become a credit to the
County and be 
used to reduce the amount which the County would otherwise

contribute during succeeding years for all employees.

(Source: P.A. 83-1362.)

 



    (40 ILCS 5/9-179.3)  (from Ch. 108 1/2, par. 9-179.3)



    Sec. 9-179.3. Optional plan of additional benefits and 
contributions. 

    (a) While this plan is in effect, an employee may establish 
additional
optional credit for additional optional benefits by 
electing in writing at
any time to make additional optional 
contributions.  The employee may
discontinue making the 
additional optional contributions at any time by
notifying the 
fund in writing.

    (b) Additional optional contributions for the additional 
optional
benefits shall be as follows:


        (1) For service after the option is elected, an 
    additional contribution
of 3% of salary shall be 
    contributed to the fund on the same basis and
under the 
    same conditions as contributions required under Sections 
    9-170
and 9-176.


        (2) For service before the option is elected, an 
    additional contribution
of 3% of the salary for the 
    applicable period of service, plus interest at
the 
    effective rate from the date of service to the date of 
    payment.  All
payments for past service must be paid in full 
    before credit is given. No
additional optional 
    contributions may be made for any period of service for

    which credit has been previously forfeited by acceptance of 
    a refund,
unless the refund is repaid in full with interest 
    at the effective rate
from the date of refund to the date 
    of repayment.

    (c) Additional optional benefits shall accrue for all 
periods of
eligible service for which additional contributions 
are paid in full.  The
additional benefit shall consist of an 
additional 1% for each year of
service for which optional 
contributions have been paid, based on the
highest average 
annual salary for any 4 consecutive years within the last
10 
years of service immediately preceding the date of withdrawal, 
to be
added to the employee retirement annuity benefits as 
otherwise computed
under this Article.  The calculation of these 
additional benefits shall be
subject to the same terms and 
conditions as are used in the calculation of
retirement annuity 
under Section 9-134.  The additional benefit shall be
included 
in the calculation of the automatic annual increase in annuity,

and in the calculation of widow's annuity, where applicable.  
However no
additional benefits will be granted which produce a 
total annuity greater
than the applicable maximum established 
for that type of annuity in this
Article, and additional 
benefits shall not apply to any benefit computed
under Section 
9-128.1.

    (d) Refunds of additional optional contributions shall be 
made on the
same basis and under the same conditions as 
provided under Sections 9-164,
9-166 and 9-167.  Interest shall 
be credited at the effective rate on the
same basis and under 
the same conditions as for other contributions.

    (e) (Blank)
Optional contributions shall be accounted for 
in a separate Optional
Contribution Reserve.

    (f) The tax levy, computed under Section 9-169, shall be 
based on
employee contributions including the amount of 
optional additional employee
contributions.

    (g) Service eligible under this Section may include only 
service as an
employee of the County as defined in Section 
9-108, and subject to Sections
9-219 and 9-220.  No service 
granted under Section 9-121.1, 9-121.4 or
9-179.2 shall be 
eligible for optional service credit.  No optional service

credit may be established for any military service, or for any 
service
under any other Article of this Code.  Optional service 
credit may be
established for any period of disability paid 
from this fund, if the employee
makes additional optional 
contributions for such periods of disability.

    (h) This plan of optional benefits and contributions shall 
not apply to
any former county employee receiving an annuity 
from the fund, who
re-enters service as a County employee, 
unless he renders at least 3 years
of additional service after 
the date of re-entry.

    (i) The effective date of the optional plan of additional 
benefits and
contributions shall be July 1, 1985, or the date 
upon which approval is
received from the Internal Revenue 
Service, whichever is later.

    (j) This plan of additional benefits and contributions 
shall expire
July 1, 2005.  No additional contributions may be 
made after
that date, and no additional benefits will accrue 
after that date.

(Source: P.A. 92-599, eff. 6-28-02.)

 



    (40 ILCS 5/9-182)  (from Ch. 108 1/2, par. 9-182)



    Sec. 9-182. Contributions by county for prior service 
annuities and
pensions under former acts.

    (a) The county, State or federal contributions authorized 
in
Section 9-169 shall be applied first for the purposes of 
this
Article 9 other than those stated in this Section.

    The balance of the sum produced from such contributions 
shall be applied
for the following purposes:


        1. "An Act to provide for the formation and 
    disbursement of a pension
fund in counties having a 
    population of 150,000 or more inhabitants, for
the benefit 
    of officers and employees in the service of such counties",

    approved June 29, 1915, as amended;


        2. Section 9-225 of this Article;


        3. To meet such part of any minimum annuity as shall be 
    in excess of the
age and service annuity and prior service 
    annuity, and to meet such part of
any minimum widow's 
    annuity in excess of the amount of widow's annuity and

    widow's prior service annuity also for the purpose of 
    providing the county
cost of automatic increases in annuity 
    after retirement in accordance with
Section 9-133 and for 
    any other purpose for which moneys are not otherwise

    provided in this Article;


        4. (Blank)
To provide a sufficient balance in the 
    investment and interest
reserve to permit a transfer from 
    that reserve to other reserves of the
fund;


        5. (Blank)
To credit to the county contribution reserve 
    such amounts required
from the county but not contributed 
    by it for age and service and prior
service annuities, and 
    widows' and widows' prior service annuities.

    (b) (Blank)
All such contributions shall be credited to the 
prior service
annuity reserve.  When the balance of this reserve 
equals its liabilities
(including in addition to all other 
liabilities, the present values of all
annuities, present or 
prospective, according to the applicable mortality
tables and 
rates of interest), the county shall cease to contribute the 
sum
stated in this Section.  Whenever the balance of the 
investment and interest
reserve is not sufficient to permit a 
transfer from that reserve to any
other reserve, the county 
shall contribute sums sufficient to make possible
such 
transfer; provided, that if annexation of territory and the 
employment
by the county of any county employee of any such 
territory at the time of
annexation, after the county has 
ceased to contribute as herein provided
results in additional 
liabilities for prior service annuity and widow's
prior service 
annuity for any such employee, contributions by the county
for 
such purposes shall be resumed.

(Source: P.A. 90-655, eff. 7-30-98.)

 



    (40 ILCS 5/9-199)  (from Ch. 108 1/2, par. 9-199)



    Sec. 9-199. To submit an annual report. 

    To submit a report in July of each year to the county board 
of the
county as of the close of business on December 31st of 
the preceding year.
The report shall contain a detailed 
statement of the affairs of the fund,
its income and 
expenditures, and assets and liabilities, and the status of
the 
several reserves. The county board shall have power to require 
and
compel the board to prepare and submit such reports.

(Source: Laws 1963, p. 161.)

 



    (40 ILCS 5/9-204)  (from Ch. 108 1/2, par. 9-204)



    Sec. 9-204. Accounting. 

    An adequate system of accounts and records shall be 
established to give
effect to the requirements of this Article 
and to report the financial condition of the fund. Such 
additional data as is necessary for required calculations, 
actuarial valuations, and operation of the fund shall be 
maintained.
The reserves designated in
Sections 9--205 to 
9--214, inclusive, shall be maintained. At the end of
each year 
and at any other time when necessary the amounts in such 
reserves
shall be improved by proper interest accretions.

(Source: Laws 1963, p. 161.)

 
    (40 ILCS 5/10-104.5  new)
    Sec. 10-104.5. Alternative retirement cancellation 
payment.
    (a) To be eligible for the alternative retirement 
cancellation payment provided in this Section, a person must:
        (1) be a member of this Fund who, on December 31, 2006, 
    was (i) in active payroll status as an employee and 
    continuously employed in a position on and after the 
    effective date of this Section and (ii) an active 
    contributor to this Fund with respect to that employment;
        (2) have not previously received any retirement 
    annuity under this Article;
        (3) file with the Board on or before 45 days after the 
    effective date of this Section, a written application 
    requesting the alternative retirement cancellation payment 
    provided in this Section;

        (4) terminate employment under 
    this Article no later than 60 days after the effective date 
    of this Section.
        (4) if there is a QILDRO in effect against the person, 
    file with the Board the written consent of all alternate 
    payees under the QILDRO to the election of an alternative 
    retirement cancellation payment under this Section; and

    (b) In lieu of any retirement annuity or other benefit 
provided under this Article, a person who qualifies for and 
elects to receive the alternative retirement cancellation 
payment under this Section shall be entitled to receive a 
one-time lump sum retirement cancellation payment equal to the 
amount of his or her contributions to the Fund (including any 
employee contributions for optional service credit and 
including any employee contributions paid by the employer or 
credited to the employee during disability) on the date of 
termination, with regular interest, multiplied by 1.5.
    (c) Notwithstanding any other provision of this Article, a 
person who receives an alternative retirement cancellation 
payment under this Section thereby forfeits the right to any 
other retirement or disability benefit or refund under this 
Article, and no widow's, survivor's, or death benefit deriving 
from that person shall be payable under this Article. Upon 
accepting an alternative retirement cancellation payment under 
this Section, the person's creditable service and all other 
rights in the Fund are terminated for all purposes.
    (d) To the extent permitted by federal law, a person who 
receives an alternative retirement cancellation payment under 
this Section may direct the Fund to pay all or a portion of 
that payment as a rollover into another retirement plan or 
account qualified under the Internal Revenue Code of 1986, as 
amended.
    (e) Notwithstanding any other provision of this Article, a 
person who has received an alternative retirement cancellation 
payment under this Section and who reenters service under this 
Article must first repay to the Fund the amount by which that 
alternative retirement cancellation payment exceeded the 
amount of his or her refundable employee contributions with 
interest of 6% per annum. For the purposes of re-establishing 
creditable service that was terminated upon election of the 
alternative retirement cancellation payment, the portion of 
the alternative retirement cancellation payment representing 
refundable employee contributions shall be deemed a refund 
repayable together with interest at the effective rate from the 
application date of such refund to the date of repayment.
    (f) No individual who receives an alternative retirement 
cancellation payment under this Section may return to active 
payroll status within 365 days after separation from service to 
the employer.
 



    (40 ILCS 5/15-106)  (from Ch. 108 1/2, par. 15-106)



    Sec. 15-106. Employer. "Employer": The University of 
Illinois, Southern
Illinois University, Chicago State 
University, Eastern Illinois University,
Governors State 
University, Illinois State University, Northeastern Illinois

University, Northern Illinois University, Western Illinois 
University, the
State Board of Higher Education, the Illinois 
Mathematics and Science Academy,
the State Geological Survey 
Division of the Department of Natural Resources,
the State 
Natural History Survey Division of the Department of Natural

Resources, the State Water Survey Division of the Department of 
Natural
Resources, the Waste Management and Research Center of 
the Department of
Natural Resources, the University Civil 
Service Merit Board, the Board of
Trustees of the State 
Universities Retirement System, the Illinois Community
College 
Board, community college
boards, any association of community 
college boards organized under Section
3-55 of the Public 
Community College Act, the Board of Examiners established
under 
the Illinois Public Accounting Act, and, only during the period 
for which
employer contributions required under Section 15-155 
are paid, the following
organizations: the alumni 
associations, the foundations and the athletic
associations 
which are affiliated with the universities and colleges 
included
in this Section as employers.  
    A department as defined in Section 14-103.04 is
an employer 
for any person appointed by the Governor under the Civil

Administrative Code of Illinois who is a participating employee 
as defined in
Section 15-109.  The Department of Central 
Management Services is an employer with respect to persons 
employed by the State Board of Higher Education in positions 
with the Illinois Century Network as of June 30, 2004 who 
remain continuously employed after that date by the Department 
of Central Management Services in positions with the Illinois 
Century Network, the Bureau of Communication and Computer 
Services, or, if applicable, any successor bureau.

    The cities of Champaign and Urbana shall be considered

employers, but only during the period for which contributions 
are required to
be made under subsection (b-1) of Section 
15-155 and only with respect to
individuals described in 
subsection (h) of Section 15-107.

(Source: P.A. 93-839, eff. 7-30-04.)

 



    (40 ILCS 5/15-107)  (from Ch. 108 1/2, par. 15-107)



    Sec. 15-107. Employee. 

    (a) "Employee" means any member of the educational, 
administrative,
secretarial, clerical, mechanical, labor or 
other staff of an employer
whose employment is permanent and 
continuous or who is employed in a
position in which services 
are expected to be rendered on a continuous
basis for at least 
4 months or one academic term, whichever is less, who
(A) 
receives payment for personal services on a warrant issued 
pursuant to
a payroll voucher certified by an employer and 
drawn by the State
Comptroller upon the State Treasurer or by 
an employer upon trust, federal
or other funds, or (B) is on a 
leave of absence without pay.  Employment
which is irregular, 
intermittent or temporary shall not be considered
continuous 
for purposes of this paragraph.

    However, a person is not an "employee" if he or she:


        (1) is a student enrolled in and regularly attending 
    classes in a
college or university which is an employer, 
    and is employed on a temporary
basis at less than full 
    time;


        (2) is currently receiving a retirement annuity or a 
    disability
retirement annuity under Section 15-153.2 from 
    this System;


        (3) is on a military leave of absence;


        (4) is eligible to participate in the Federal Civil 
    Service Retirement
System and is currently making 
    contributions to that system based upon
earnings paid by an 
    employer;


        (5) is on leave of absence without pay for more than 60 
    days
immediately following termination of disability 
    benefits under this
Article;


        (6) is hired after June 30, 1979 as a public service 
    employment program
participant under the Federal 
    Comprehensive Employment and Training Act
and receives 
    earnings in whole or in part from funds provided under that

    Act; or


        (7) is employed on or after July 1, 1991 to perform 
    services that
are excluded by subdivision (a)(7)(f) or 
    (a)(19) of Section 210 of the
federal Social Security Act 
    from the definition of employment given in that
Section (42 
    U.S.C. 410).

    (b) Any employer may, by filing a written notice with the 
board, exclude
from the definition of "employee" all persons 
employed pursuant to a federally
funded contract entered into 
after July 1, 1982 with a federal military
department in a 
program providing training in military courses to federal

military personnel on a military site owned by the United 
States Government,
if this exclusion is not prohibited by the 
federally funded contract or
federal laws or rules governing 
the administration of the contract.

    (c) Any person appointed by the Governor under the Civil 
Administrative
Code of the State is an employee, if he or she 
is a participant in this
system on the effective date of the 
appointment.

    (d) A participant on lay-off status under civil service 
rules is
considered an employee for not more than 120 days from 
the date of the lay-off.

    (e) A participant is considered an employee during (1) the 
first 60 days
of disability leave, (2) the period, not to 
exceed one year, in which his
or her eligibility for disability 
benefits is being considered by the board
or reviewed by the 
courts, and (3) the period he or she receives disability

benefits under the provisions of Section 15-152, workers' 
compensation or
occupational disease benefits, or disability 
income under an insurance
contract financed wholly or partially 
by the employer.

    (f) Absences without pay, other than formal leaves of 
absence, of less
than 30 calendar days, are not considered as 
an interruption of a person's
status as an employee.  If such 
absences during any period of 12 months
exceed 30 work days, 
the employee status of the person is considered as
interrupted 
as of the 31st work day.

    (g) A staff member whose employment contract requires 
services during
an academic term is to be considered an 
employee during the summer and
other vacation periods, unless 
he or she declines an employment contract
for the succeeding 
academic term or his or her employment status is
otherwise 
terminated, and he or she receives no earnings during these 
periods.

    (h) An individual who was a participating employee employed 
in the fire
department of the University of Illinois's 
Champaign-Urbana campus immediately
prior to the elimination 
of that fire department and who immediately after the

elimination of that fire department became employed by the fire 
department of
the City of Urbana or the City of Champaign shall 
continue to be considered as
an employee for purposes of this 
Article for so long as the individual remains
employed as a 
firefighter by the City of Urbana or the City of Champaign.  The

individual shall cease to be considered an employee under this 
subsection (h)
upon the first termination of the individual's 
employment as a firefighter by
the City of Urbana or the City 
of Champaign.

    (i) An individual who is employed on a full-time basis as 
an officer
or employee of a statewide teacher organization that 
serves System
participants or an officer of a national teacher 
organization that serves
System participants may participate 
in the System and shall be deemed an
employee, provided that 
(1) the individual has previously earned
creditable service 
under this Article, (2) the individual files with the
System an 
irrevocable election to become a participant, and (3) the

individual does not receive credit for that employment under 
any other Article
of this Code.  An employee under this 
subsection (i) is responsible for paying
to the System both (A) 
employee contributions based on the actual compensation

received for service with the teacher organization and (B) 
employer
contributions equal to the normal costs (as defined in 
Section 15-155)
resulting from that service; all or any part of 
these contributions may be
paid on the employee's behalf or 
picked up for tax purposes (if authorized
under federal law) by 
the teacher organization.

    A person who is an employee as defined in this subsection 
(i) may establish
service credit for similar employment prior 
to becoming an employee under this
subsection by paying to the 
System for that employment the contributions
specified in this 
subsection, plus interest at the effective rate from the
date 
of service to the date of payment.  However, credit shall not be 
granted
under this subsection for any such prior employment for 
which the applicant
received credit under any other provision 
of this Code, or during which
the applicant was on a leave of 
absence under Section 15-113.2.

    (j) A person employed by the State Board of Higher 
Education in a position with the Illinois Century Network as of 
June 30, 2004 shall be considered to be an employee for so long 
as he or she remains continuously employed after that date by 
the Department of Central Management Services in a position 
with the Illinois Century Network, the Bureau of Communication 
and Computer Services, or, if applicable, any successor bureau

and meets the requirements of subsection (a).

(Source: P.A. 93-347, eff. 7-24-03; 93-839, eff. 7-30-04.)

 

    (40 ILCS 5/9-168 rep.)



    (40 ILCS 5/9-205 rep.)


    (40 ILCS 5/9-206 rep.)


    (40 ILCS 5/9-207 rep.)


    (40 ILCS 5/9-208 rep.)


    (40 ILCS 5/9-209 rep.)


    (40 ILCS 5/9-210 rep.)


    (40 ILCS 5/9-211 rep.)


    (40 ILCS 5/9-212 rep.)


    (40 ILCS 5/9-213 rep.)


    (40 ILCS 5/9-214 rep.)


    (40 ILCS 5/9-215 rep.)

    Section 10. The Illinois Pension Code is amended  by 
repealing Sections 9-168, 9-205, 9-206, 9-207, 9-208, 9-209, 
9-210, 9-211, 9-212, 9-213, 9-214, and 9-215.
 
    Section 90. The State Mandates Act is amended by adding 
Section 8.31 as follows:
 
    (30 ILCS 805/8.31 new)
    Sec. 8.31. Exempt mandate. Notwithstanding Sections 6 and 8 
of this Act, no reimbursement by the State is required for the 
implementation of any mandate created by this amendatory Act of 
the 95th General Assembly.
 

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