Public Act 90-0012 of the 90th General Assembly
Public Act 90-0012
HB0488 Enrolled LRB9002860EGfg
AN ACT to amend the Illinois Pension Code in relation to
the Metropolitan Water Reclamation District.
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 1-113, 13-204, 13-207, 13-208, 13-301,
13-302, 13-304, 13-305, 13-306, 13-308, 13-309, 13-310,
13-314, 13-401, and 13-402 as follows:
(40 ILCS 5/1-113) (from Ch. 108 1/2, par. 1-113)
Sec. 1-113. Investment authority. The investment
authority of a board of trustees of a retirement system or
pension fund established under this Code shall, if so
provided in the Article establishing such retirement system
or pension fund, embrace the following investments:
(1) Bonds, notes and other direct obligations of the
United States Government; bonds, notes and other obligations
of any United States Government agency or instrumentality,
whether or not guaranteed; and obligations the principal and
interest of which are guaranteed unconditionally by the
United States Government or by an agency or instrumentality
thereof.
(2) Obligations of the Inter-American Development Bank,
the International Bank for Reconstruction and Development,
the African Development Bank, the International Finance
Corporation, and the Asian Development Bank.
(3) Obligations of any state, or of any political
subdivision in Illinois, or of any county or city in any
other state having a population as shown by the last federal
census of not less than 30,000 inhabitants provided that such
political subdivision is not permitted by law to become
indebted in excess of 10% of the assessed valuation of
property therein and has not defaulted for a period longer
than 30 days in the payment of interest and principal on any
of its general obligations or indebtedness during a period of
10 calendar years immediately preceding such investment.
(4) Nonconvertible bonds, debentures, notes and other
corporate obligations of any corporation created or existing
under the laws of the United States or any state, district or
territory thereof, provided there has been no default on the
obligations of the corporation or its predecessor(s) during
the 5 calendar years immediately preceding the purchase.
(5) Obligations guaranteed by the Government of Canada,
or by any Province of Canada, or by any Canadian city with a
population of not less than 150,000 inhabitants, provided (a)
they are payable in United States currency and are exempt
from any Canadian withholding tax; (b) the investment in any
one issue of bonds shall not exceed 10% of the amount
outstanding; and (c) the total investments at book value in
Canadian securities shall be limited to 5% of the total
investment account of the board at book value.
(5.1) Direct obligations of the State of Israel for the
payment of money, or obligations for the payment of money
which are guaranteed as to the payment of principal and
interest by the State of Israel, or common or preferred stock
or notes issued by a bank owned or controlled in whole or in
part by the State of Israel, on the following conditions:
(a) The total investments in such obligations shall
not exceed 5% of the book value of the aggregate
investments owned by the board;
(b) The State of Israel shall not be in default in
the payment of principal or interest on any of its direct
general obligations on the date of such investment;
(c) The bonds, stock or notes, and interest thereon
shall be payable in currency of the United States;
(d) The bonds shall (1) contain an option for the
redemption thereof after 90 days from date of purchase or
(2) either become due 5 years from the date of their
purchase or be subject to redemption 120 days after the
date of notice for redemption;
(e) The investment in these obligations has been
approved in writing by investment counsel employed by the
board, which counsel shall be a national or state bank or
trust company authorized to do a trust business in the
State of Illinois, or an investment advisor qualified
under the Federal Investment Advisors Act of 1940 and
registered under the Illinois Securities Act of 1953;
(f) The fund or system making the investment shall
have at least $5,000,000 of net present assets.
(6) Notes secured by mortgages under Sections 203, 207,
220 and 221 of the National Housing Act which are insured by
the Federal Housing Commissioner, or his successor assigns,
or debentures issued by such Commissioner, which are
guaranteed as to principal and interest by the Federal
Housing Administration, or agency of the United States
Government, provided the aggregate investment shall not
exceed 20% of the total investment account of the board at
book value, and provided further that the investment in such
notes under Sections 220 and 221 shall in no event exceed
one-half of the maximum investment in notes under this
paragraph.
(7) Loans to veterans guaranteed in whole or part by the
United States Government pursuant to Title III of the Act of
Congress known as the "Servicemen's Readjustment Act of
1944," 58 Stat. 284, 38 U.S.C. 693, as amended or
supplemented from time to time, provided such guaranteed
loans are liens upon real estate.
(8) Common and preferred stocks and convertible debt
securities authorized for investment of trust funds under the
laws of the State of Illinois, provided:
(a) the common stocks, except as provided in
subparagraph (h), are listed on a national securities
exchange as defined in the Federal Securities Exchange
Act, or quoted in the National Association of Securities
Dealers Automated Quotation System (NASDAQ);
(b) the securities are of a corporation created or
existing under the laws of the United States or any
state, district or territory thereof;
(c) the corporation is not in arrears on payment of
dividends on its preferred stock;
(d) the total book value of all stocks and
convertible debt owned by any pension fund or retirement
system shall not exceed 40% of the aggregate book value
of all investments of such pension fund or retirement
system, except for a pension fund or retirement that
system governed by Article 13 or 17, where the total of
all stocks and convertible debt shall not exceed 50% of
the aggregate book value of all fund investments;
(e) the book value of stock and convertible debt
investments in any one corporation shall not exceed 5% of
the total investment account at book value in which such
securities are held, determined as of the date of the
investment, and the investments in the stock of any one
corporation shall not exceed 5% of the total outstanding
stock of such corporation, and the investments in the
convertible debt of any one corporation shall not exceed
5% of the total amount of such debt that may be
outstanding;
(f) the straight preferred stocks or convertible
preferred stocks and convertible debt securities are
issued or guaranteed by a corporation whose common stock
qualifies for investment by the board; and
(g) that any common stocks not listed or quoted as
provided in subdivision 8(a) above be limited to the
following types of institutions: (a) any bank which is a
member of the Federal Deposit Insurance Corporation
having capital funds represented by capital stock,
surplus and undivided profits of at least $20,000,000;
(b) any life insurance company having capital funds
represented by capital stock, special surplus funds and
unassigned surplus totalling at least $50,000,000; and
(c) any fire or casualty insurance company, or a
combination thereof, having capital funds represented by
capital stock, net surplus and voluntary reserves of at
least $50,000,000.
(9) Withdrawable accounts of State chartered and federal
chartered savings and loan associations insured by the
Federal Savings and Loan Insurance Corporation; deposits or
certificates of deposit in State and national banks insured
by the Federal Deposit Insurance Corporation; and share
accounts or share certificate accounts in a State or federal
credit union, the accounts of which are insured as required
by The Illinois Credit Union Act or the Federal Credit Union
Act, as applicable.
No bank or savings and loan association shall receive
investment funds as permitted by this subsection (9), unless
it has complied with the requirements established pursuant to
Section 6 of the Public Funds Investment Act.
(10) Trading, purchase or sale of listed options on
underlying securities owned by the board.
(11) Contracts and agreements supplemental thereto
providing for investments in the general account of a life
insurance company authorized to do business in Illinois.
(12) Conventional mortgage pass-through securities which
are evidenced by interests in Illinois owner-occupied
residential mortgages, having not less than an "A" rating
from at least one national securities rating service. Such
mortgages may have loan-to-value ratios up to 95%, provided
that any amount over 80% is insured by private mortgage
insurance. The pool of such mortgages shall be insured by
mortgage guaranty or equivalent insurance, in accordance with
industry standards.
(13) Pooled or commingled funds managed by a national or
State bank which is authorized to do a trust business in the
State of Illinois, shares of registered investment companies
as defined in the federal Investment Company Act of 1940
which are registered under that Act, and separate accounts of
a life insurance company authorized to do business in
Illinois, where such pooled or commingled funds, shares, or
separate accounts are comprised of common or preferred
stocks, bonds, or money market instruments.
(14) Pooled or commingled funds managed by a national or
state bank which is authorized to do a trust business in the
State of Illinois, separate accounts managed by a life
insurance company authorized to do business in Illinois, and
commingled group trusts managed by an investment adviser
registered under the federal Investment Advisors Act of 1940
(15 U.S.C. 80b-1 et seq.) and under the Illinois Securities
Law of 1953, where such pooled or commingled funds, separate
accounts or commingled group trusts are comprised of real
estate or loans upon real estate secured by first or second
mortgages. The total investment in such pooled or commingled
funds, commingled group trusts and separate accounts shall
not exceed 10% of the aggregate book value of all investments
owned by the fund.
(15) Investment companies which (a) are registered as
such under the Investment Company Act of 1940, (b) are
diversified, open-end management investment companies and (c)
invest only in money market instruments.
(16) Up to 10% of the assets of the fund may be invested
in investments not included in paragraphs (1) through (15) of
this Section, provided that such investments comply with the
requirements and restrictions set forth in Sections 1-109,
1-109.1, 1-109.2, 1-110 and 1-111 of this Code.
The board shall have the authority to enter into such
agreements and to execute such documents as it determines to
be necessary to complete any investment transaction.
Any limitations herein set forth shall be applicable only
at the time of purchase and shall not require the liquidation
of any investment at any time.
All investments shall be clearly held and accounted for
to indicate ownership by such board. Such board may direct
the registration of securities in its own name or in the name
of a nominee created for the express purpose of registration
of securities by a national or state bank or trust company
authorized to conduct a trust business in the State of
Illinois.
Investments shall be carried at cost or at a book value
in accordance with accounting procedures approved by such
board. No adjustments shall be made in investment carrying
values for ordinary current market price fluctuations; but
reserves may be provided to account for possible losses or
unrealized gains as determined by such board.
The book value of investments held by any pension fund or
retirement system in one or more commingled investment
accounts shall be the cost of its units of participation in
such commingled account or accounts as recorded on the books
of such board.
(Source: P.A. 86-272; 87-575; 87-794; 87-895.)
(40 ILCS 5/13-204) (from Ch. 108 1/2, par. 13-204)
Sec. 13-204. "Employee": (a) Any employee of the Water
Reclamation District appointed to the classified civil
service under the Metropolitan Water Reclamation District Act
or any employee exempt from civil service under that Act,
including any person absent from such position due to
assignment to any other position of employment for the
District; (b) any temporary employee of the District; (c) all
appointed officers or acting officers of the District; (d)
any employee of the Retirement Board; and (e) any member of
the Board of Commissioners of the District who elects to
participate in the Fund within 90 days after becoming a
member.
No person shall be an employee hereunder whose duties
will not ordinarily permit 120 days of service during one
calendar year.
A member of the Civil Service Board of the District who
is first appointed to that office on or after the effective
date of this amendatory Act of 1997 is not, by virtue of
holding that office, an "employee" for the purposes of this
Article.
(Source: P.A. 87-794.)
(40 ILCS 5/13-207) (from Ch. 108 1/2, par. 13-207)
Sec. 13-207. "Salary": The salary paid to an employee
for service to the District or to the Board, including salary
paid for vacation and sick leave and any amounts deferred
under a deferred compensation plan established under this
Code, but excluding (1) payment for unused vacation or sick
leave, (2) overtime pay, (3) termination pay, and (4) (3) any
compensation in the form of benefits other than the salary.
(Source: P.A. 87-794.)
(40 ILCS 5/13-208) (from Ch. 108 1/2, par. 13-208)
Sec. 13-208. "Average final salary": The highest
average annual salary as calculated by accumulating the
salary for the highest any 52 consecutive pay periods within
the last 10 years of service immediately preceding the date
of retirement and dividing by 2.
(Source: P.A. 87-794.)
(40 ILCS 5/13-301) (from Ch. 108 1/2, par. 13-301)
Sec. 13-301. Retirement annuity; eligibility. Any
employee who withdraws from service and meets the age and
service requirements and other conditions set forth in
subsections (a), (b), (c) or (d) hereof is entitled to
receive a retirement annuity.
(a) Withdrawal on or after age 60. Any employee, upon
withdrawal from service on or after attainment of age 60 and
having at least 5 years of service, is entitled to a
retirement annuity.
(b) Withdrawal on or after attainment of minimum
retirement age 50 and prior to age 60. Any employee, upon
withdrawal from service on or after attainment of age 55 (age
50 if the employee first entered service before the effective
date of this amendatory Act of 1997) but prior to age 60 and
having at least 10 years of service, is entitled to a
retirement annuity as of the date of withdrawal or, at the
option of the employee, at any time thereafter. Any employee
who withdraws on or after attainment of age 55 (age 50 if the
employee first entered service before the effective date of
this amendatory Act of 1997) and prior to age 60 having at
least 5 years but less than 10 years of service is entitled
to a retirement annuity upon attainment of age 62, subject to
the other requirements of this Article.
(c) Withdrawal prior to minimum retirement age 50. Any
employee, upon withdrawal from service prior to age 55 (age
50 if the employee first entered service before the effective
date of this amendatory Act of 1997) and having at least 10
years of service, shall become entitled to a retirement
annuity upon attainment of age 55 (age 50 if the employee
first entered service before the effective date of this
amendatory Act of 1997) or, at the option of the employee, at
any time thereafter, subject to the other requirements of
this Article.
(d) Withdrawal while disabled. Any employee having at
least 5 years of service who has received ordinary disability
benefits on or after January 1, 1986 for the maximum period
of time hereinafter prescribed, and who continues to be
disabled and withdraws from service, shall be entitled to a
retirement annuity. The age and service conditions as to
eligibility for such annuity shall be waived as to the
employee, but the early retirement discount under Section
13-302(b) shall apply. If the employee is under age 55 on
the date of withdrawal, the retirement annuity shall be
computed by assuming that the employee is then age 55 and
then reduced to its actuarial equivalent at his attained age
on that date according to applicable mortality tables and
interest rates. The retirement annuity shall not be payable
for any period prior to the employee's attainment of age 55
during which the employee is able to return to gainful
employment. Upon the employee's death while in receipt of a
retirement annuity, a surviving spouse or minor children
shall be entitled to receive a surviving spouse's annuity or
child's annuity subject to the conditions hereinafter
prescribed in Sections 13-305 through 13-308.
(Source: P.A. 87-794.)
(40 ILCS 5/13-302) (from Ch. 108 1/2, par. 13-302)
Sec. 13-302. Computation of retirement annuity.
(a) Computation of annuity. An employee who withdraws
from service on or after July 1, 1989 and who has met the age
and service requirements and other conditions for eligibility
set forth in Section 13-301 of this Article is entitled to
receive a retirement annuity for life equal to 2.2% of
average final salary for each of the first 20 years of
service, and 2.4% of average final salary for each year of
service in excess of 20. The retirement annuity shall not
exceed 80% of average final salary.
(b) Early retirement discount. If an employee retires
prior to attainment of age 60 with less than 30 years of
service, the annuity computed above shall be reduced by 1/2
of 1% for each full month between the date the annuity begins
and attainment of age 60, or each full month by which the
employee's service is less than 30 years, whichever is less.
However, where the employee first enters service after the
effective date of this amendatory Act of 1997 and does not
have at least 10 years of service exclusive of credit under
Article 20, the annuity computed above shall be reduced by
1/2 of 1% for each full month between the date the annuity
begins and attainment of age 60.
(c) Early retirement without discount. An employee who
has attained age 50 and retires after December 31, 1987 and
before June 30, 1997, and who retires within 6 months of the
last day for which retirement contributions were required,
may elect at the time of application to make a one-time
employee contribution to the Fund and thereby avoid the early
retirement reduction specified in subsection (b). The
exercise of the election shall also obligate the employer to
make a one-time nonrefundable contribution to the Fund.
The one-time employee and employer contributions shall be
a percentage of the retiring employee's last full-time annual
salary, calculated as the total amount paid during the last
260 work days immediately prior to the date of withdrawal, or
if not full-time then the full time equivalent, and based on
the employee's age and service at retirement. The employee
contribution rate shall be 7% multiplied by the lesser of the
following 2 numbers: (1) the number of years, or portion
thereof, that the employee is less than age 60; or (2) the
number of years, or portion thereof, that the employee's
service is less than 30 years. The employer contribution
shall be at the rate of 20% for each year, or portion
thereof, that the participant is less than age 60.
Upon receipt of the application, the Board shall
determine the corresponding employee and employer
contributions. The annuity shall not be payable under this
subsection until both the required contributions have been
received by the Fund. However, the date the contributions
are received shall not be considered in determining the
effective date of retirement.
The number of employees who may retire under this Section
in any year may be limited at the option of the District to a
specified percentage of those eligible, not lower than 30%,
with the right to participate to be allocated among those
applying on the basis of seniority in the service of the
employer.
An employee who has terminated employment and
subsequently re-enters service shall not be entitled to early
retirement without discount under this subsection unless the
employee continues in service for at least 4 years after
re-entry.
(c-1) Early retirement without discount; retirement
after June 29, 1997. An employee who (i) has attained age 55
(age 50 if the employee first entered service before the
effective date of this amendatory Act of 1997), (ii) has at
least 10 years of service exclusive of credit under Article
20, (iii) retires after June 29, 1997 and before January 1,
2003, and (iv) retires within 6 months of the last day for
which retirement contributions were required, may elect at
the time of application to make a one-time employee
contribution to the Fund and thereby avoid the early
retirement reduction specified in subsection (b). The
exercise of the election shall also obligate the employer to
make a one-time nonrefundable contribution to the Fund.
The one-time employee and employer contributions shall be
a percentage of the retiring employee's highest full-time
annual salary, calculated as the total amount of salary
included in the highest 26 consecutive pay periods as used in
the average final salary calculation, and based on the
employee's age and service at retirement. The employee rate
shall be 7% multiplied by the lesser of the following 2
numbers: (1) the number of years, or portion thereof, that
the employee is less than age 60; or (2) the number of years,
or portion thereof, that the employee's service is less than
30 years. The employer contribution shall be at the rate of
20% for each year, or portion thereof, that the participant
is less than age 60.
Upon receipt of the application, the Board shall
determine the corresponding employee and employer
contributions. The annuity shall not be payable under this
subsection until both the required contributions have been
received by the Fund. However, the date the contributions
are received shall not be considered in determining the
effective date of retirement.
The number of employees who may retire under this Section
in any year may be limited at the option of the District to a
specified percentage of those eligible, not lower than 30%,
with the right to participate to be allocated among those
applying on the basis of seniority in the service of the
employer.
An employee who has terminated employment and
subsequently re-enters service shall not be entitled to early
retirement without discount under this subsection unless the
employee continues in service for at least 4 years after
re-entry.
(d) Annual increase. Except for employees retiring and
receiving a term annuity, an employee who retires on or after
July 1, 1985 shall, upon the first payment date following the
first anniversary of the date of retirement, have the monthly
annuity increased by 3% of the amount of the monthly annuity
fixed at the date of retirement. The monthly annuity shall
be increased by an additional 3% on the same date each year
thereafter. Beginning January 1, 1993, all annual increases
payable under this subsection (or any predecessor provision,
regardless of the date of retirement) shall be calculated at
the rate of 3% of the monthly annuity payable at the time of
the increase, including any increases previously granted
under this Article subsection.
Any employee who (i) retired before July 1, 1985 with at
least 10 years of creditable service, (ii) is receiving a
retirement annuity under this Article, other than a term
annuity, and (iii) has not received any annual increase under
this subsection, shall begin receiving the annual increases
provided under this subsection (d) beginning on the next
annuity payment date following the effective date of this
amendatory Act of 1997.
(e) Minimum retirement annuity. Beginning January 1,
1993, the minimum monthly retirement annuity shall be $500
for any annuitant having at least 10 years of service under
this Article, other than a term annuitant or an annuitant who
began receiving the annuity before attaining age 60. Any
such annuitant who is receiving a monthly annuity of less
than $500 shall have the annuity increased to $500 on that
date.
Beginning January 1, 1993, the minimum monthly retirement
annuity shall be $250 for any annuitant (other than a term or
reciprocal annuitant or an annuitant under subsection (d) of
Section 13-301) having less than 10 years of service under
this Article, and for any annuitant (other than a term
annuitant) having at least 10 years of service under this
Article who began receiving the annuity before attaining age
60. Any such annuitant who is receiving a monthly annuity of
less than $250 shall have the annuity increased to $250 on
that date.
(Source: P.A. 87-794; 87-1265.)
(40 ILCS 5/13-304) (from Ch. 108 1/2, par. 13-304)
Sec. 13-304. Optional plan of additional benefits and
contributions.
(a) While this plan is in effect, an eligible employee
may establish additional optional credit for additional
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.
Employees first entering service after June 30, 1997 are
not eligible to participate in the plan established under
this Section.
(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 Section
13-502.
(2) For service services before the option is
elected, an additional contribution of 3% of the salary
for the applicable period of service, plus interest at
the annual rate as shall from time to time be determined
by the Board, compounded annually from the date of
service to the date of payment. All payments for past
service must be paid in full before credit is given. A
person who has withdrawn from service may pay the
additional contribution for past service at any time
within 30 days after withdrawal from service, so long as
payment is made in full before the retirement annuity
commences. 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 rate
specified in Section 13-603, from the date of refund to
the date of repayment. Nothing herein may be construed
to allow an additional optional contribution to be made
on the account of a deceased employee.
(c) Additional optional benefit 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% of average final salary for each
year of service for which optional contributions have been
paid, to be added to the employee's retirement annuity 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 the
retirement annuity under this Article. The additional
benefit shall be included in the calculation of the automatic
annual increase in annuity under Section 13-302(d), and in
the calculation of surviving spouse'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.
The total additional optional benefit that may be received
under this Section is 15% of average final salary.
(d) Refunds of additional optional contributions shall
be made on the same basis and under the same conditions as
provided under Section 13-601.
(e) Optional contributions shall be accounted for in a
separate Optional Contribution Reserve.
(f) The tax levy computed under Section 13-503 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 as defined in Section 13-204, and
subject to Section 13-401 and 13-402. No service granted
under Section 13-801 or 13-802 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 period of disability.
(h) This plan of optional benefits and contributions
shall not apply to service prior to withdrawal rendered by
any former employee who re-enters service unless such
employee renders not less than 36 consecutive months of
additional service after the date of re-entry.
(i) The effective date of this optional plan of
additional benefits and contributions shall be the date upon
which approval was received from the Internal Revenue
Service, July 31, 1987.
(j) This plan of additional benefits and contributions
shall expire December 31, 2002 July 1, 1997. No additional
contributions may be made after that date, and no additional
benefits will accrue after that date.
(k) The maximum optional benefits for current and prior
service for which an employee can make contributions in a
single year shall be limited to 15 years of service in 1997
and before; 9 years of service in 1998; 6 years of service in
1999; and 3 years of service in 2000, 2001, and 2002. No
person may establish additional optional benefits under this
Section for more than 15 years of service.
(Source: P.A. 87-794; 87-1265.)
(40 ILCS 5/13-305) (from Ch. 108 1/2, par. 13-305)
Sec. 13-305. Surviving spouse's annuity; eligibility. A
surviving spouse who was married to an employee on the date
of the such employee's death while in service, or was married
to an employee on the date of withdrawal from service and
remained married to that such employee until the employee's
death, shall be entitled to a surviving spouse's annuity
payable for life. However, the annuity shall not be payable
to; provided, however, that the surviving spouse of (1) an
employee who withdraws from service before age 55 with less
than shall not be entitled to an annuity unless the deceased
employee had at least 10 years of service, or less than 5
years of service if the for the surviving spouse of a former
employee who had been receiving a retirement annuity pursuant
to Section 13-301(d), or (2) an employee not described in
item (1) who first enters service on or after the effective
date of this amendatory Act of 1997 and who has been employed
as an employee for (i) less than 36 months from the date of
the employee's original entry into service or (ii) less than
12 months from the employee's date of latest re-entry into
service; except as otherwise provided in Section 13-306(a)
for an employee whose death arises out of or in the course of
the employee's service to the employer.
A dissolution of marriage after retirement shall not
divest the employee's spouse of the entitlement to a
surviving spouse's annuity upon the subsequent death of the
employee, provided that the surviving spouse and the deceased
employee had been married to each other for a period of not
less than 10 continuous years on the date of retirement.
(Source: P.A. 87-794.)
(40 ILCS 5/13-306) (from Ch. 108 1/2, par. 13-306)
Sec. 13-306. Computation of surviving spouse's annuity.
(a) Computation of the annuity. The surviving spouse's
annuity shall be equal to 60% of the retirement annuity
earned and accrued to the credit of the deceased employee,
whether death occurs while in service or after withdrawal,
plus 1% for each year of total service of the employee to a
maximum of 85%; provided, however, that if the employee's
death arises out of and in the course of the employee's
service to the employer and is compensable under either the
Illinois Workers' Compensation Act or Illinois Workers'
Occupational Diseases Act, the surviving spouse's annuity is
payable regardless of the employee's length of service and
shall be not less than 50% of the employee's salary at the
date of death.
For any death in service the early retirement discount
required under Section 13-302(b) shall not be applied in
computing the retirement annuity upon which is based the
surviving spouse's annuity.
(b) Reciprocal service. For any employee or annuitant
who retires on or after July 1, 1985 and whose death occurs
after January 1, 1991, having at least 15 years of service
with the employer under this Article, and who was eligible at
the time of death or elected at the time of retirement to
have his or her retirement annuity calculated as provided in
Section 20-131 of this Code, the surviving spouse benefit
shall be calculated as of the date of the employee's death as
indicated in subsection (a) as a percentage of the employee's
total benefit as if all service had been with the employer.
That benefit shall then be reduced by the amounts payable by
each of the reciprocal funds as of the date of death so that
the total surviving spouse benefit at that date will be equal
to the benefit which would have been payable had all service
been with the employer under this Article.
(c) Discount for age differential. The annuity for a
surviving spouse shall be discounted by 0.25% for each full
month that the spouse is younger than the employee as of the
date of withdrawal from service or death in service to a
maximum discount of 60% of the surviving spouse annuity as
calculated under subsections (a), (b), and (e) of this
Section Sections 13-306(a) and 13-306(b) of this Act. The
discount shall be reduced by 10% for each full year the
marriage has been in continuous effect as of the date of
withdrawal or death in service. There shall be no discount
if the marriage has been in continuous effect for 10 ten full
years or more at the time of withdrawal or death in service.
(d) Annual increase. On the first day of each calendar
month in which there occurs an anniversary of the employee's
date of retirement or date of death, whichever occurred
first, the surviving spouse's annuity, other than a term
annuity under Section 13-307, shall be increased by an amount
equal to 3% of the amount of the annuity. Beginning January
1, 1993, all annual increases payable under this subsection
(or any predecessor provision of this Article) shall be
calculated at the rate of 3% of the monthly annuity payable
at the time of the increase, including any increases
previously granted under this Article subsection.
Beginning January 1, 1993, surviving spouse annuitants
whose deceased spouse died, retired or withdrew from service
before August 23, 1989 with at least 10 years of service
under this Article shall be eligible for the annual increases
provided under this subsection.
(e) Minimum surviving spouse's annuity. Beginning
January 1, 1993, the minimum monthly surviving spouse's
annuity shall be $500 for any annuitant whose deceased spouse
had at least 10 years of service under this Article, other
than a surviving spouse who is a term annuitant or whose
deceased spouse began receiving a retirement annuity under
this Article before attainment of age 60. Any such surviving
spouse annuitant who is receiving a monthly annuity of less
than $500 shall have the annuity increased to $500 on that
date.
Beginning January 1, 1993, the minimum monthly surviving
spouse's annuity shall be $250 for any annuitant (other than
a term or reciprocal annuitant or an annuitant survivor under
subsection (d) of Section 13-301) whose deceased spouse had
less than 10 years of service under this Article, and for any
annuitant (other than a term annuitant) whose deceased spouse
had at least 10 years of service under this Article and began
receiving a retirement annuity under this Article before
attainment of age 60. Any such surviving spouse annuitant
who is receiving a monthly annuity of less than $250 shall
have the annuity increased to $250 on that date.
The minimum annuity provided under this subsection (e)
shall be subject to the age discount provided under
subsection (c) of this Section.
(Source: P.A. 87-794; 87-1265.)
(40 ILCS 5/13-308) (from Ch. 108 1/2, par. 13-308)
Sec. 13-308. Child's annuity.
(a) Eligibility. A child's annuity shall be provided
for each unmarried child of a deceased employee under the age
of 18 years whose employee parent dies while in service, or
whose deceased parent is an annuitant or former employee with
at least 10 years of creditable service who did not take a
refund of employee contributions.
For purposes of this Section, "employee" includes a
former employee, and "child" means the issue of an employee,
or a child adopted by an employee if the proceedings for
adoption were instituted at least one year prior to the
employee's death.
Payments shall cease when a child attains the age of 18
years or marries, whichever first occurs. The annuity shall
not be payable unless the employee has been employed as an
employee for employee's length of service is at least 36
months 2 years from the date of the employee's original entry
into service (at least 24 months in the case of an employee
who first entered service before the effective date of this
amendatory Act of 1997) and at least 12 months 1 year from
the date of the employee's latest re-entry into service;
provided, however, that if death arises out of and in the
course of service to the employer and is compensable under
either the Illinois Workers' Compensation Act or Illinois
Workers' Occupational Diseases Act, the annuity is payable
regardless of the employee's length of service.
(b) Amount. A child's annuity shall be $250 per month
for each child as provided in this Section if a parent of the
child during such period as the surviving spouse of the
deceased employee parent is living, and $350 per month for
each child when neither parent is alive. Any child's annuity
which commenced prior to the effective date of this
amendatory Act of 1991 shall be increased upon the effective
date to the amount set forth herein.
(c) Payment. A child's annuity shall be paid to the
child's parent or other person who shall be providing for the
child without requiring formal letters of guardianship,
unless another person shall be appointed by a court of law as
guardian.
(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 becoming disabled prior to
attainment of age 70, 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 the effective
date of this amendatory Act of 1997, 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.
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.
The employee shall also receive a child's disability
benefit during such period of $10 per month for each
unmarried natural or adopted child of the employee less than
the age of 18 years.
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 61 or later, benefits
may be extended for a period of no more disability shall
terminate no earlier than 5 4 years after disablement or
at age 70, whichever occurs first; except that child
benefit payments shall be made until the child's
marriage, death or attainment of age 18, whichever first
occurs;
(4) The employee refuses to submit to reasonable
examinations by physicians or other health professionals
appointed by the Board; or
(5) The employee willfully and continuously refuses
to accept medical 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. 87-794.)
(40 ILCS 5/13-310) (from Ch. 108 1/2, par. 13-310)
Sec. 13-310. Ordinary disability benefit.
(a) Any employee under age 70 who becomes disabled as
the result of any cause other than injury or illness incurred
in the performance of duty for the employer or any other
employer, or while engaged in self-employment activities,
shall be entitled to an ordinary disability benefit. The
eligible period for this benefit shall be 25% of the
employee's total actual service prior to the date of
disability with a cumulative maximum period of 5 years for
employees becoming disabled prior to reaching age 61, and 4
years for employees who become disabled at age 61 or later,
but in no event shall the benefit be payable after an
employee attains the age of 70.
(b) The benefit shall be allowed only if the employee
files an application in writing with the Board, and a medical
report is submitted by at least one licensed and practicing
physician as part of the employee's application.
The benefit is not payable for any disability which
begins during any period of unpaid leave of absence. No
benefit shall be allowed for any period of disability prior
to 30 days before application is made, unless the Board finds
good cause for the delay in filing the application. The
benefit shall not be paid during any period for which the
employee receives or is entitled to receive any part of
salary.
The benefit is not payable for any disability which
begins during any period of absence from duty other than
allowable vacation time in any calendar year. An employee
whose disability begins during any such ineligible period of
absence from service may not receive benefits until the
employee recovers from the disability and is in service for
at least 15 consecutive working days after such recovery.
In the case of an employee who first enters service on or
after the effective date of this amendatory Act of 1997, an
ordinary 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.
(c) The benefit shall be 50% of the employee's salary at
the date of disability, and shall terminate when the earliest
of the following occurs:
(1) The employee returns to work or receives a
retirement annuity paid wholly or in part under this
Article;
(2) The disability ceases;
(3) (Blank) The employee attains age 65 but if the
employee becomes disabled at age 61 or older, the
disability shall terminate no earlier than 4 years after
disablement or at age 70, whichever occurs first;
(4) The employee refuses to submit to a reasonable
physical examination within 30 days of application by a
physician appointed by the Board or in the case of
chronic alcoholism, the employee refuses to join a
rehabilitation program licensed by the Department of
Public Health of the State of Illinois, and certified by
the Joint Commission on the Accreditation of Hospitals;
or
(5) The eligible period for this benefit has been
exhausted.
The first payment of the benefit shall be made not later
than one month after the same has been granted, and
subsequent payments shall be made at intervals of not more
than 30 days.
(Source: P.A. 87-794.)
(40 ILCS 5/13-314) (from Ch. 108 1/2, par. 13-314)
Sec. 13-314. Alternative provisions for Water
Reclamation District commissioners.
(a) Transfer of credits. Any Water Reclamation District
commissioner elected by vote of the people and who has
elected to participate in this Fund may transfer to this Fund
credits and creditable service accumulated under any other
pension fund or retirement system established under Articles
2 through 18 of this Code, upon payment to the Fund of (1)
the amount by which the employer and employee contributions
that would have been required if he had participated in this
Fund during the period for which credit is being transferred,
plus interest, exceeds the amounts actually transferred from
such other fund or system to this Fund, plus (2) interest
thereon at 6% per year compounded annually from the date of
transfer to the date of payment.
(b) Alternative annuity. Any participant commissioner
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 commissioner 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 Section
13-502.
(2) For service before the option is elected, the
additional contribution shall be 3% of the salary for the
applicable period of service, plus interest at the annual
rate from time to time as determined by the Board,
compounded annually 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 rate specified in Section 13-603, from
the date of refund to the date of repayment.
In lieu of the retirement annuity otherwise payable under
this Article, any commissioner who has elected to participate
in the Fund and make additional optional contributions in
accordance with this Section, has attained age 55, and has at
least 6 years of service credit, may elect to have the
retirement annuity computed as follows: 3% of the
participant's average final salary as a commissioner 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
commissioner has made additional optional contributions with
respect to only a portion of years of service credit, the
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. The change in minimum
retirement age (from 60 to 55) made by this amendatory Act of
1993 applies to persons who begin receiving a retirement
annuity under this Section on or after the effective date of
this amendatory Act, without regard to whether they are in
service on or after that date.
(c) Disability benefits. In lieu of the disability
benefits otherwise payable under this Article, any
commissioner 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 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
commissioner shall be considered permanently disabled only
if: (i) disability occurs while in service as a commissioner
and is of such a nature as to prevent the reasonable
performance of the duties of 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
commissioner is disabled and that the disability is likely to
be permanent.
(d) Alternative survivor's benefits. In lieu of the
survivor's benefits otherwise payable under this Article, the
spouse or eligible child of any deceased commissioner who (1)
had elected to participate in the Fund, and (2) was either
making additional optional contributions on the date of
death, or was receiving an annuity calculated under this
Section at the time of death, may elect to receive an annuity
beginning on the date of the commissioner's death, provided
that the spouse and commissioner must have been married on
the date of the last termination of a service as commissioner
and for a continuous period of at least one year immediately
preceding death.
The annuity shall be payable beginning on the date of the
commissioner's death if the spouse is then age 50 or over, or
beginning at age 50 if the age of the spouse is less than 50
years. If a minor unmarried child or children of the
commissioner, under age 18, also survive, and the child or
children are under the care of the eligible spouse, the
annuity shall begin as of the date of death of the
commissioner without regard to the spouse's age.
The annuity to a spouse shall be 66 2/3% of the amount of
retirement annuity earned by the commissioner on the date of
death, subject to a minimum payment of 10% of salary,
provided that if an eligible spouse, regardless of age, has
in his or her care at the date of death of the commissioner
any unmarried child or children of the commissioner under age
18, the minimum annuity shall be 30% of the commissioner's
salary, plus 10% of salary on account of each minor child of
the commissioner, subject to a combined total payment on
account of a spouse and minor children not to exceed 50% of
the deceased commissioner's salary. In the event there shall
be no spouse of the commissioner surviving, or should a
spouse die while eligible minor children still survive the
commissioner, each such child shall be entitled to an annuity
equal to 20% of salary of the commissioner subject to a
combined total payment on account of all such children not to
exceed 50% of salary of the commissioner. The salary to be
used in the calculation of these benefits shall be the same
as that prescribed for determining a retirement annuity as
provided in subsection (b) of this Section.
Upon the death of a commissioner occurring after
termination of a service or while in receipt of a retirement
annuity, the combined total payment to a spouse and minor
children, or to minor children alone if no eligible spouse
survives, shall be limited to 75% of the amount of retirement
annuity earned by the commissioner.
Adopted children shall have status as natural children of
the commissioner only if the proceedings for adoption were
commenced at least one year prior to the date of the
commissioner's death.
Marriage of a child or attainment of age 18, whichever
first occurs, shall render the child ineligible for further
consideration in the payment of annuity to a spouse or in the
increase in the amount thereof. Upon attainment of
ineligibility of the youngest minor child of the
commissioner, the annuity shall immediately revert to the
amount payable upon death of a commissioner leaving no minor
children surviving. If the spouse is under age 50 at such
time, the annuity as revised shall be deferred until such age
is attained.
(e) Refunds. Refunds of additional optional
contributions shall be made on the same basis and under the
same conditions as provided under Section 13-601. Interest
shall be credited on the same basis and under the same
conditions as for other contributions.
Optional contributions shall be accounted for in a
separate Commission's 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 13-503.
(f) Effective date. The effective date of this plan of
optional alternative benefits and contributions shall be the
date upon which approval was received from the U.S. Internal
Revenue Service. The plan of optional alternative benefits
and contributions shall not be available to any former
employee receiving an annuity from the Fund on the effective
date, unless said former employee re-enters service and
renders at least 3 years of additional service after the date
of re-entry as a commissioner.
(Source: P.A. 87-794; 87-1265.)
(40 ILCS 5/13-401) (from Ch. 108 1/2, par. 13-401)
Sec. 13-401. Term of service.
(a) In computing the term of service, the following
periods of time shall be counted as periods of service for
annuity purposes only:
(1) the time during which the employee performs
services required by the Employer.
(2) approved vacations or leaves of absence with
whole or part pay.
(3) any period for which the employee receives a
disability benefit payable under this Article.
(4) leaves of absence for military service as
provided in Section 13-403.
(b) In computing the term of service for the ordinary
disability benefit, the following periods of time shall be
counted as periods of service:
(1) the time during which the employee performs
services required by the Employer.
(2) approved vacations or leaves of absence with
whole or part pay.
(3) any period for which the employee receives a
duty disability benefit under this Article.
(c) Any employee who first enters service before the
effective date of this amendatory Act of 1997 may, during any
period of approved leave of absence without pay, continue to
make contributions for the retirement and surviving spouse's
annuities for a total period not to exceed one year during
the employee's entire aggregate service with the Employer.
Upon making these contributions, the employee shall receive
credit in terms of length of service for the retirement and
surviving spouse's annuities. Concurrent Employer's
contributions shall be provided by the District.
(d) An employee may establish credit for periods of
approved leave of absence without pay, not to exceed a total
of one year during the employee's aggregate service with the
employer. To establish this credit, the employee must either
continue to remain on approved leave of absence, return to
service with the employer, or in the case of an employee who
first enters service on or after the effective date of this
amendatory Act of 1997, return to service with the employer
for at least one calendar year. The employee must pay to the
Fund the corresponding employee contributions, plus interest
at the annual rate from time to time determined by the Board,
compounded annually from the date of service to the date of
payment. The corresponding employer contributions shall be
provided by the District. Upon making the required
contributions, the employee shall receive credit in terms of
length of service for the retirement and surviving spouse's
annuity in proportion to the number of pay periods or portion
thereof for which contributions were made relative to 26 pay
periods.
(e) Overtime or extra service shall not be included in
computing any service. Not more than one 1 year of service
credit shall be allowed for service rendered during any
calendar year.
(Source: P.A. 87-794.)
(40 ILCS 5/13-402) (from Ch. 108 1/2, par. 13-402)
Sec. 13-402. Length of service. For the purpose of
computing the length of service for the retirement annuity,
surviving spouse's annuity and child's annuity, service of
120 days in any one calendar year shall constitute one year
of service and service for any fractional part thereof shall
constitute an equal fractional part of one year of service
unless specifically provided otherwise. For all other
purposes under this Article, including but not limited to the
optional plans plan of additional benefits and contributions
provided under Sections Section 13-304 and 13-314 of this
Article, 26 pay periods of service during any 12 consecutive
months a calendar year shall constitute a year of service,
and service rendered for 50% or more of a single pay period
shall constitute service for the full pay period. Service of
less than 50% of a single pay period shall not be counted.
(Source: P.A. 87-794.)
Section 90. In accordance with subdivision (a)(1) of
Section 8 of the State Mandates Act, the General Assembly
finds that the State is excluded from reimbursement liability
for this amendatory Act of 1997 because it accommodates a
request from the affected unit of local government.
Section 99. Effective date. This Act takes effect upon
becoming law.
INDEX
Statutes amended in order of appearance
40 ILCS 5/1-113 from Ch. 108 1/2, par. 1-113
40 ILCS 5/13-204 from Ch. 108 1/2, par. 13-204
40 ILCS 5/13-207 from Ch. 108 1/2, par. 13-207
40 ILCS 5/13-208 from Ch. 108 1/2, par. 13-208
40 ILCS 5/13-301 from Ch. 108 1/2, par. 13-301
40 ILCS 5/13-302 from Ch. 108 1/2, par. 13-302
40 ILCS 5/13-304 from Ch. 108 1/2, par. 13-304
40 ILCS 5/13-305 from Ch. 108 1/2, par. 13-305
40 ILCS 5/13-306 from Ch. 108 1/2, par. 13-306
40 ILCS 5/13-308 from Ch. 108 1/2, par. 13-308
40 ILCS 5/13-309 from Ch. 108 1/2, par. 13-309
40 ILCS 5/13-310 from Ch. 108 1/2, par. 13-310
40 ILCS 5/13-314 from Ch. 108 1/2, par. 13-314
40 ILCS 5/13-401 from Ch. 108 1/2, par. 13-401
40 ILCS 5/13-402 from Ch. 108 1/2, par. 13-402