Public Act 095-0586
 
SB1653 Enrolled LRB095 10854 AMC 31124 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 13-215, 13-216, 13-309, 13-502, 13-601, and 13-706 as
follows:
 
    (40 ILCS 5/13-215)  (from Ch. 108 1/2, par. 13-215)
    Sec. 13-215. "Retirement annuity": A benefit payable as an
annuity for service as an employee. The annuity shall be
payable in equal monthly installments for life, except as
otherwise provided in this Article, beginning in the one month
after the effective date of the annuity as fixed by the Board,
which shall not be prior to the date of withdrawal nor more
than one year prior to the date of the employee's application
for the annuity. A pro rata amount of the annuity shall be paid
for part of a month when the annuity begins after the first day
of the month or ends before the last day of the month.
    Notwithstanding the above, all retirement annuity payments
first payable on or after January 1, 2008, shall begin the
first of the month following the effective date of retirement.
    Effective January 1, 2008, benefits are payable for the
full month if the annuitant was alive on the first day of the
month.
(Source: P.A. 87-794.)
 
    (40 ILCS 5/13-216)  (from Ch. 108 1/2, par. 13-216)
    Sec. 13-216. "Surviving spouse's annuity": The amount
payable as a surviving spouse annuity commencing on the date of
the employee's or retiree's death. The annuity shall be payable
in equal monthly installments for life, except as otherwise
provided in this Article, in the month after the effective date
of the annuity beginning one month after the effective date of
the annuity. A pro rata amount of the annuity shall be paid for
part of a month when the annuity begins after the first day of
the month or ends before the last day of the month.
    Notwithstanding the above, all surviving spouse annuity
payments first payable on or after January 1, 2008, shall begin
the first of the month following the employee's or annuitant's
date of death.
    Effective January 1, 2008, benefits are payable for the
full month if the annuitant was alive on the first day of the
month.
(Source: P.A. 87-794.)
 
    (40 ILCS 5/13-309)  (from Ch. 108 1/2, par. 13-309)
    Sec. 13-309. Duty disability benefit.
    (a) Any employee who becomes disabled, which disability is
the result of an injury or illness compensable under the
Illinois Workers' Compensation Act or the Illinois Workers'
Occupational Diseases Act, is entitled to a duty disability
benefit during the period of disability for which the employee
does not receive any part of salary, or any part of a
retirement annuity under this Article; except that in the case
of an employee who first enters service on or after June 13,
1997 and becomes disabled before the effective date of this
amendatory Act of the 94th General Assembly, a duty disability
benefit is not payable for the first 3 days of disability that
would otherwise be payable under this Section if the disability
does not continue for at least 11 additional days. The changes
made to this Section by this amendatory Act of the 94th General
Assembly are prospective only and do not entitle an employee to
a duty disability benefit for the first 3 days of any
disability that occurred before that effective date and did not
continue for at least 11 additional days. This benefit shall be
75% of salary at the date disability begins. However, if the
disability in any measure resulted from any physical defect or
disease which existed at the time such injury was sustained or
such illness commenced, the duty disability benefit shall be
50% of salary.
    Unless the employer acknowledges that the disability is a
result of injury or illness compensable under the Workers'
Compensation Act or the Workers' Occupational Diseases Act, the
duty disability benefit shall not be payable until the issue of
compensability under those Acts is finally adjudicated. The
period of disability shall be as determined by the Illinois
Workers' Compensation Commission or acknowledged by the
employer.
    An employee in service before June 13, 1997 shall also
receive a child's disability benefit during the period of
disability of $10 per month for each unmarried natural or
adopted child of the employee under 18 years of age.
    The first payment shall be made not later than one month
after the benefit is granted, and subsequent payments shall be
made at least monthly. The Board shall by rule prescribe for
the payment of such benefits on the basis of the amount of
salary lost during the period of disability.
    (b) The benefit shall be allowed only if the following
requirements are met by the employee:
        (1) Application is made to the Board within 90 days
    from the date disability begins;
        (2) A medical report is submitted by at least one
    licensed and practicing physician as part of the employee's
    application; and
        (3) The employee is examined by at least one licensed
    and practicing physician appointed by the Board and found
    to be in a disabled physical condition, and shall be
    re-examined at least annually thereafter during the
    continuance of disability. The employee need not be
    re-examined by a licensed and practicing physician if the
    attorney for the district certifies in writing that the
    employee is entitled to receive compensation under the
    Workers' Compensation Act or the Workers' Occupational
    Diseases Act.
    (c) The benefit shall terminate when:
        (1) The employee returns to work or receives a
    retirement annuity paid wholly or in part under this
    Article;
        (2) The disability ceases;
        (3) The employee attains age 65, but if the employee
    becomes disabled at age 60 or later, benefits may be
    extended for a period of no more than 5 years after
    disablement;
        (4) The employee (i) refuses to submit to reasonable
    examinations by physicians or other health professionals
    appointed by the Board, (ii) fails or refuses to consent to
    and sign an authorization allowing the Board to receive
    copies of or to examine the employee's medical and hospital
    records, or (iii) fails or refuses to provide complete
    information regarding any other employment for
    compensation he or she has received since becoming
    disabled; or
        (5) The employee willfully and continuously refuses to
    follow medical advice and treatment to enable the employee
    to return to work. However this provision does not apply to
    an employee who relies in good faith on treatment by prayer
    through spiritual means alone in accordance with the tenets
    and practice of a recognized church or religious
    denomination, by a duly accredited practitioner thereof.
    In the case of a duty disability recipient who returns to
work, the employee must make application to the Retirement
Board within 2 years from the date the employee last received
duty disability benefits in order to become again entitled to
duty disability benefits based on the injury for which a duty
disability benefit was theretofore paid.
(Source: P.A. 93-721, eff. 1-1-05; 94-621, eff. 8-18-05.)
 
    (40 ILCS 5/13-502)  (from Ch. 108 1/2, par. 13-502)
    Sec. 13-502. Employee contributions; deductions from
salary.
    (a) Retirement annuity and child's annuity. There shall be
deducted from each payment of salary an amount equal to 7% 7
1/2% of salary as the employee's contribution for the
retirement annuity, including annual increases therefore and
child's annuity, and 0.5% of salary as the employee's
contribution for annual increases to the retirement annuity.
    (b) Surviving spouse's annuity. There shall be deducted
from each payment of salary an amount equal to 1 1/2% of salary
as the employee's contribution for the surviving spouse's
annuity and annual increases therefor.
    (c) Pickup of employee contributions. The Employer may pick
up employee contributions required under subsections (a) and
(b) of this Section. If contributions are picked up they shall
be treated as Employer contributions in determining tax
treatment under the United States Internal Revenue Code, and
shall not be included as gross income of the employee until
such time as they are distributed. The Employer shall pay these
employee contributions from the same source of funds used in
paying salary to the employee. The Employer may pick up these
contributions by a reduction in the cash salary of the employee
or by an offset against a future salary increase or by a
combination of a reduction in salary and offset against a
future salary increase. If employee contributions are picked up
they shall be treated for all purposes of this Article 13,
including Sections 13-503 and 13-601, in the same manner and to
the same extent as employee contributions made prior to the
date picked up.
    (d) Subject to the requirements of federal law, the
Employer shall pick up optional contributions that the employee
has elected to pay to the Fund under Section 13-304.1, and the
contributions so picked up shall be treated as employer
contributions for the purposes of determining federal tax
treatment. The Employer shall pick up the contributions by a
reduction in the cash salary of the employee and shall pay the
contributions from the same fund that is used to pay earnings
to the employee. The Employer shall, however, continue to
withhold federal and State income taxes based upon
contributions made under Section 13-304.1 until the Internal
Revenue Service or the federal courts rule that pursuant to
Section 414(h) of the U.S. Internal Revenue Code of 1986, as
amended, these contributions shall not be included as gross
income of the employee until such time as they are distributed
or made available.
    (e) Each employee is deemed to consent and agree to the
deductions from compensation provided for in this Article.
    (f) Subject to the requirements of federal law, the
Employer shall pick up contributions that a commissioner has
elected to pay to the Fund under Section 13-314, and the
contributions so picked up shall be treated as Employer
contributions for the purposes of determining federal tax
treatment. The Employer shall pick up the contributions by a
reduction in the cash salary of the commissioner and shall pay
the contributions from the same fund as is used to pay earnings
to the commissioner. The Employer shall, however, continue to
withhold federal and State income taxes based upon
contributions made under Section 13-314 until the U.S. Internal
Revenue Service or the federal courts rule that pursuant to
Section 414(h) of the Internal Revenue Code of 1986, as
amended, these contributions shall not be included as gross
income of the employee until such time as they are distributed
or made available.
(Source: P.A. 94-621, eff. 8-18-05.)
 
    (40 ILCS 5/13-601)  (from Ch. 108 1/2, par. 13-601)
    Sec. 13-601. Refunds.
    (a) Withdrawal from service. Upon withdrawal from service,
an employee under age 55 (age 50 if the employee first entered
service before June 13, 1997), or an employee age 55 (age 50 if
the employee first entered service before June 13, 1997) or
over but less than 60 having less than 20 years of service, or
an employee age 60 or over having less than 5 years of service
shall be entitled, upon application, to a refund of total
contributions from salary deductions or amounts otherwise paid
under this Article by the employee. The refund shall not
include interest credited to the contributions. The Board may,
in its discretion, withhold payment of a refund for a period
not to exceed one year from the date of filing an application
for refund.
    (b) Surviving spouse's annuity contributions. A refund of
all amounts deducted from salary or otherwise contributed by an
employee for the surviving spouse's annuity shall be paid upon
retirement to any employee who on the date of retirement is
either not married or is married but whose spouse is not
eligible for a surviving spouse's annuity paid wholly or in
part under this Article. The refund shall include interest on
each contribution at the rate of 3% per annum compounded
annually from the date of the contribution to the date of the
refund.
    (c) Payment of Refunds After Death. Whenever any refund is
payable after the death of the annuitant as provided for in
this Article, the refund shall be paid as follows: to the
employee's surviving spouse, but if there is no surviving
spouse then in accordance with the employee's written
designation of beneficiary filed with the Board on the
prescribed form before the employee's death. If there is no
such designation of beneficiary, then to the employee's
surviving children in equal parts to each. If there are no such
children, the refund shall be paid to the heirs of the employee
according to the law of descent and distribution of the State
of Illinois. When paid to children, estate or beneficiary.
Whenever the total accumulations, to the account of an employee
from employee contributions, including interest to the
employee's date of withdrawal, have not been paid to the
employee and surviving spouse as a retirement or spouse's
annuity before the death of the survivor of the employee and
spouse, a refund shall be paid as follows: an amount equal to
the excess of such amounts over the amounts paid on such
annuities without interest on either such amount, shall be paid
to the children of the employee, in equal parts to each, unless
the employee has directed in writing, signed by him before an
officer authorized to administer oaths, and filed with the
Board before the employee's death, that any such amount shall
be refunded and paid to any one or more of such children; and
if there are not children, such other beneficiary or
beneficiaries as might be designated by the employee. If there
are no such children or designation of beneficiary, the refund
shall be paid to the personal representative of the employee's
estate.
    If a personal representative of the estate has not been
appointed within 90 days from the date on which a refund became
payable, the refund may be applied, in the discretion of the
Board, toward the payment of the employee's or the surviving
spouse's burial expenses. Any remaining balance shall be paid
to the heirs of the employee according to the law of descent
and distribution of the State of Illinois.
    Whenever the total accumulations to the account of an
employee from employee contributions other than the
contribution for the cost of living increase, including
interest to the employee's date of withdrawal, have not been
paid to the employee and surviving spouse as a retirement or
spouse's annuity before the death of the employee and spouse, a
refund shall be paid as follows: an amount equal to the excess
of such amounts over the amounts paid on such annuities without
interest on either such amount.
    If a reversionary annuity becomes payable under Section
13-303, the refund provided in this section shall not be paid
until the death of the reversionary annuitant and the refund
otherwise payable under this section shall be then further
reduced by the amount of the reversionary annuity paid.
    (d) In lieu of annuity. Notwithstanding the provisions set
forth in subsection (a) of this section, whenever an employee's
or surviving spouse's annuity will be less than $200 per month,
the employee or surviving spouse, as the case may be, may elect
to receive a refund of accumulated employee contributions;
provided, however, that if the election is made by a surviving
spouse the refund shall be reduced by any amounts theretofore
paid to the employee in the form of an annuity.
    (e) Forfeiture of rights. An employee or surviving spouse
who receives a refund forfeits the right to receive an annuity
or any other benefit payable under this Article except that if
the refund is to a surviving spouse, any child or children of
the employee shall not be deprived of the right to receive a
child's annuity as provided in Section 13-308 of this Article,
and the payment of a child's annuity shall not reduce the
amount refundable to the surviving spouse.
(Source: P.A. 94-621, eff. 8-18-05.)
 
    (40 ILCS 5/13-706)  (from Ch. 108 1/2, par. 13-706)
    Sec. 13-706. Board powers and duties. The Board shall have
the powers and duties set forth in this Section, in addition to
such other powers and duties as may be provided in this Article
and in this Code:
        (a) To supervise collections. To see that all amounts
    specified in this Article to be applied to the Fund, from
    any source, are collected and applied.
        (b) To notify of deductions. To notify the Clerk of the
    Water Reclamation District of the deductions to be made
    from the salaries of employees.
        (c) To accept gifts. To accept by gift, grant, bequest
    or otherwise any money or property of any kind and use the
    same for the purposes of the Fund.
        (d) To invest the reserves. To invest the reserves of
    the Fund in accordance with the provisions set forth in
    Section 1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114, and
    1-115 of this Code. Investments made in accordance with
    Section 1-113 of Article 1 of this Code shall be deemed
    prudent. The Board is also authorized to transfer
    securities to the Illinois State Board of Investment for
    the purpose of participation in any commingled investment
    fund as provided in Article 22A of this Code.
        (e) To authorize payments. To consider and pass upon
    all applications for annuities and benefits; to authorize
    or suspend the payment of any annuity or benefit; to
    inquire into the validity and legality of any grant of
    annuity or benefit paid from or payable out of the Fund; to
    increase, reduce, or suspend any such annuity or benefit
    whenever the annuity or benefit, or any part thereof, was
    secured or granted, or the amount thereof fixed, as the
    result of misrepresentation, fraud, or error. No such
    annuity or benefit shall be permanently reduced or
    suspended until the affected annuitant or beneficiary is
    first notified of the proposed action and given an
    opportunity to be heard. No trustee of the Board shall vote
    upon that trustee's own personal claim for annuity, benefit
    or refund, or participate in the deliberations of the Board
    as to the validity of any such claim. The Board shall have
    exclusive original jurisdiction in all matters of claims
    for annuities, benefits and refunds.
        (f) To submit an annual report. To submit a report in
    July of each year to the Board of Commissioners of the
    Water Reclamation District as of the close of business on
    December 31st of the preceding year. The report shall
    include the following:
            (1) A balance sheet, showing the financial and
        actuarial condition of the Fund as of the end of the
        calendar year;
            (2) A statement of receipts and disbursements
        during such year;
            (3) A statement showing changes in the asset,
        liability, reserve and surplus accounts during such
        year;
            (4) A detailed statement of investments as of the
        end of the year; and
            (5) Any additional information as is deemed
        necessary for proper interpretation of the condition
        of the Fund.
        (g) To subpoena witnesses. To compel witnesses to
    attend and testify before it upon any matter concerning the
    Fund and allow witness fees not in excess of $6 for
    attendance upon any one day. The President and other
    members of the Board may administer oaths to witnesses.
        (h) To appoint employees and consultants. To appoint
    such actuarial, medical, legal, investigational, clerical
    or financial employees and consultants as are necessary,
    and fix their compensation.
        (i) To make rules. To make rules and regulations
    necessary for the administration of the affairs of the
    Fund.
        (j) To waive guardianship. To waive the requirement of
    legal guardianship of any minor unmarried beneficiary of
    the Fund living with a parent or grandparent, and legal
    guardianship of any beneficiary under legal disability
    whose husband, wife, or parent is managing such
    beneficiary's affairs, whenever the Board deems such
    waiver to be in the best interest of the beneficiary.
        (k) To collect amounts due. To collect any amounts due
    to the Fund from any participant or beneficiary prior to
    payment of any annuity, benefit or refund.
        (l) To invoke rule of offset. To offset against any
    amount payable to an employee or to any other person such
    sums as may be due to the Fund or may have been paid by the
    Fund due to misrepresentation, fraud or error.
        (m) To assess and collect interest on amounts due to
    the Fund using the annual rate as shall from time to time
    be determined by the Board, compounded annually from the
    date of notification to the date of payment.
(Source: P.A. 94-621, eff. 8-18-05.)
 
    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.