Public Act 90-0766 of the 90th General Assembly
Public Act 90-0766
HB3515 Enrolled LRB9011159EGfg
AN ACT in relation to public employee retirement
benefits, amending named Acts.
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 2-121, 2-123, 2-126, 2-126.1, 3-114.3,
3-114.4, 3-121, 5-156, 5-157, 5-167.4, 5-168, 5-172, 5-204,
6-128.4, 6-165, 7-146, 7-150, 7-159, 7-173.1, 7-173.2, 8-137,
8-137.1, 8-138, 8-139, 8-150.1, 8-158, 8-173, 8-244.1,
11-134, 11-134.1, 11-134.2, 11-134.3, 11-145.1, 11-153,
11-169, 11-181, 11-182, 11-183, 12-133.1, 12-166, 14-104,
14-104.10 (as added by P.A. 90-32), 14-133.1, 15-107, 15-135,
15-136, 15-136.4, 15-141, 15-142, 15-145, 15-146, 15-150,
15-153.2, 15-153.3, 15-154, 15-157, 15-158.2, 15-158.3,
15-165, 15-167, 18-129, and 18-133.1 and adding Sections
3-114.6, 8-230.7, 12-133.5, 15-103.1, 15-103.2, 15-103.3, and
15-134.5 as follows:
(40 ILCS 5/2-121) (from Ch. 108 1/2, par. 2-121)
Sec. 2-121. Survivor's annuity - conditions for payment.
(a) A survivor's annuity shall be payable to a surviving
spouse or eligible child (1) upon the death in service of a
participant with at least 2 years of service credit, or (2)
upon the death of an annuitant in receipt of a retirement
annuity, or (3) upon the death of a participant who
terminated service with at least 4 years of service credit.
The change in this subsection (a) made by this amendatory
Act of 1995 applies to survivors of participants who die on
or after December 1, 1994, without regard to whether or not
the participant was in service on or after the effective date
of this amendatory Act of 1995.
(b) To be eligible for the survivor's annuity, the
spouse and the participant or annuitant must have been
married for a continuous period of at least one year
immediately preceding the date of death, but need not have
been married on the day of the participant's last termination
of service, regardless of whether such termination occurred
prior to the effective date of this amendatory Act of 1985.
(c) The annuity shall be payable beginning on the date
of a participant's death, or the first of the month following
an annuitant's death, if the spouse is then age 50 or over,
or beginning at age 50 if the spouse is then under age 50.
If an eligible child or children of the participant or
annuitant (or a child or children of the eligible spouse
meeting the criteria of item (1), (2), or (3) of subsection
(d) of this Section) also survive, and the child or children
are under the care of the eligible spouse, the annuity shall
begin as of the date of a participant's death, or the first
of the month following an annuitant's death, without regard
to the spouse's age.
The change to this subsection made by this amendatory Act
of 1998 (relating to children of an eligible spouse) applies
to the eligible spouse of a participant or annuitant who dies
on or after the effective date of this amendatory Act,
without regard to whether the participant or annuitant is in
service on or after that effective date.
(d) For the purposes of this Section and Section
2-121.1, "eligible child" means a child of the deceased
participant or annuitant who is at least one of the
following:
(1) unmarried and under the age of 18;
(2) unmarried, a full-time student, and under the
age of 22;
(3) dependent by reason of physical or mental
disability.
The inclusion of unmarried students under age 22 in the
calculation of survivor's annuities by this amendatory Act of
1991 shall apply to all eligible students beginning January
1, 1992, without regard to whether the deceased participant
or annuitant was in service on or after the effective date of
this amendatory Act of 1991.
Adopted children shall have the same status as children
of the participant or annuitant, but only if the proceedings
for adoption are commenced at least one year prior to the
date of the participant's or annuitant's death.
(e) Remarriage of a surviving spouse prior to attainment
of age 55 shall disqualify the surviving spouse from the
receipt of a survivor's annuity.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/2-123) (from Ch. 108 1/2, par. 2-123)
Sec. 2-123. Refunds.
(a) A participant who ceases to be a member, other than
an annuitant, shall, upon written request, receive a refund
of his or her total contributions, without interest. The
refund shall include the additional contributions for the
automatic increase in retirement annuity. By accepting the
refund, a participant forfeits all accrued rights and
benefits in the System and loses credit for all service.
However, if he or she again becomes a member, he or she may
resume status as a participant and reestablish any forfeited
service credit by paying to the System the full amount
refunded, together with interest at 4% per annum from the
time the refund is paid to the date the member again becomes
a participant.
A former member of the General Assembly may reestablish
any service credit forfeited by acceptance of a refund by
paying to the System on or before February 1, 1993, the full
amount refunded, together with interest at 4% per annum from
the date of payment of the refund to the date of repayment.
When a member or former member owes money to the System,
interest at the rate of 4% per annum shall accrue and be
payable on such amounts owed beginning on the date of
termination of service as a member until the contributions
due have been paid in full.
(b) A participant who (1) has elected to cease making
contributions for survivor's annuity under subsection (b) of
Section 2-126, (2) has no eligible survivor's annuity
beneficiary survivor upon becoming an annuitant, or (3) who
terminates service with less than 8 years of service is
entitled to a refund of the contributions for a survivor's
annuity, without interest. If the such person later marries,
a survivor's annuity shall not be payable upon his or her
death, unless the amount of the such refund is repaid to the
System, together with interest at the rate of 4% per year
from the date of refund to the date of repayment.
(c) If at the date of retirement or death of a
participant who served as an officer of the General Assembly,
the total period of such service is less than 4 years, the
additional contributions made by such member on the
additional salary as an officer shall be refunded unless the
participant served as an officer for at least 2 years and has
contributed the amount he or she would have contributed if he
or she had served as an officer for 4 years as provided in
Section 2-126.
(d) Upon the termination of the last survivor's annuity
payable to a survivor of a deceased participant, the excess,
if any, of the total contributions made by the participant
for retirement and survivor's annuity, without interest, over
the total amount of retirement and survivor's annuity
payments received by the participant and the participant's
survivors shall be refunded upon request:
(i) if there was a surviving spouse of the deceased
participant who was eligible for a survivor's annuity, to
the designated beneficiary of that spouse or, if the
designated beneficiary is deceased or there is no
designated beneficiary, to that spouse's estate;
(ii) if there was no eligible surviving spouse of
the deceased participant, to the designated beneficiary
of the deceased participant or, if the designated
beneficiary is deceased or there is no designated
beneficiary, to the deceased participant's estate.
(e) Upon the death of a participant, if a survivor's
annuity is not payable under this Article, a beneficiary
designated by the participant shall be entitled to a refund
of all contributions made by the participant. If the
participant has not designated a refund beneficiary, the
surviving spouse shall be entitled to the refund of
contributions; if there is no surviving spouse, the
contributions shall be refunded to the participant's
surviving children, if any, and if no children survive, the
refund payment shall be made to the participant's estate.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
Sec. 2-126. Contributions by participants.
(a) Each participant shall contribute toward the cost of
his or her retirement annuity a percentage of each payment of
salary received by him or her for service as a member as
follows: for service between October 31, 1947 and January 1,
1959, 5%; for service between January 1, 1959 and June 30,
1969, 6%; for service between July 1, 1969 and January 10,
1973, 6 1/2%; for service after January 10, 1973, 7%; for
service after December 31, 1981, 8 1/2%.
(b) Beginning August 2, 1949, each male participant, and
from July 1, 1971, each female participant shall contribute
towards the cost of the survivor's annuity 2% of salary.
A participant who has no eligible survivor's annuity
beneficiary may elect to cease making contributions for
survivor's annuity under this subsection. A survivor's
annuity shall not be payable upon the death of a person who
has made this election, unless prior to that death the
election has been revoked and the amount of the contributions
that would have been paid under this subsection in the
absence of the election is paid to the System, together with
interest at the rate of 4% per year from the date the
contributions would have been made to the date of payment.
(c) Beginning July 1, 1967, each participant shall
contribute 1% of salary towards the cost of automatic
increase in annuity provided in Section 2-119.1. These
contributions shall be made concurrently with contributions
for retirement annuity purposes.
(d) In addition, each participant serving as an officer
of the General Assembly shall contribute, for the same
purposes and at the same rates as are required of a regular
participant, on each additional payment received as an
officer. If the participant serves as an officer for at
least 2 but less than 4 years, he or she shall contribute an
amount equal to the amount that would have been contributed
had the participant served as an officer for 4 years.
Persons who serve as officers in the 87th General Assembly
but cannot receive the additional payment to officers because
of the ban on increases in salary during their terms may
nonetheless make contributions based on those additional
payments for the purpose of having the additional payments
included in their highest salary for annuity purposes;
however, persons electing to make these additional
contributions must also pay an amount representing the
corresponding employer contributions, as calculated by the
System.
(Source: P.A. 86-273; 87-1265.)
(40 ILCS 5/2-126.1) (from Ch. 108 1/2, par. 2-126.1)
Sec. 2-126.1. Pickup of contributions.
(a) The State shall pick up the participant
contributions required under Section 2-126 for all salary
earned after December 31, 1981. The contributions so picked
up shall be treated as employer contributions in determining
tax treatment under the United States Internal Revenue Code.
The State shall pay these participant contributions from the
same source of funds which is used in paying salary to the
participant. The State may pick up these contributions by a
reduction in the cash salary of the participant. If
participant contributions are picked up they shall be treated
for all purposes of this Article 2 in the same manner as
participant contributions that were made prior to the date
that the pick up of contributions began.
(b) Subject to the requirements of federal law, a
participant may elect to have the employer pick up optional
contributions that the participant has elected to pay to the
System, 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
participant and shall pay the contributions from the same
fund that is used to pay earnings to the participant. The
election to have optional contributions picked up is
irrevocable and the optional contributions may not thereafter
be prepaid, by direct payment or otherwise. If the provision
authorizing the optional contribution requires payment by a
stated date (rather than the date of withdrawal or
retirement), that requirement shall be deemed to have been
satisfied if (i) on or before the stated date the participant
executes a valid irrevocable election to have the
contributions picked up under this subsection, and (ii) the
picked-up contributions are in fact paid to the System as
provided in the election.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/3-114.3) (from Ch. 108 1/2, par. 3-114.3)
Sec. 3-114.3. Heart attack suffered in performance of
duties. Any police officer who suffers a heart attack as a
result of the performance and discharge of police duty shall
be considered as having been injured in the performance of an
act of duty and shall be eligible for the benefits provided
under this Article for police officers injured in the
performance of an act of duty or, if applicable, the benefits
provided in Section 3-114.6.
(Source: P.A. 83-1440.)
(40 ILCS 5/3-114.4) (from Ch. 108 1/2, par. 3-114.4)
Sec. 3-114.4. Return to active duty after disability. A
police officer who receives a disability pension under
Section Sections 3-114.1, or 3-114.2, or 3-114.6 for more
than 2 years and who returns to active duty must remain in
active police service for at least 5 years before becoming
eligible for a disability pension greater than the pension
paid for the prior disability.
(Source: P.A. 83-1440.)
(40 ILCS 5/3-114.6 new)
Sec. 3-114.6. Occupational disease disability pension.
(a) This Section applies only to police officers who are
employed by a municipality with a combined police and fire
department and who have regular firefighting duties in
addition to their law enforcement duties.
(b) The General Assembly finds that service in a police
department that also has firefighting duties requires
officers to perform unusual tasks in times of stress and
danger; that officers are subject to exposure to extreme heat
or extreme cold in certain seasons while performing their
duties; that they are required to work in the midst of and
are subject to heavy smoke fumes and carcinogenic, poisonous,
toxic, or chemical gases from fires; and that these
conditions exist and arise out of or in the course of
employment.
(c) An active officer with 5 or more years of creditable
service who is found to be unable to perform his or her
duties in the department by reason of heart disease,
tuberculosis, or any disease of the lungs or respiratory
tract, resulting from service as an officer, is entitled to
an occupational disease disability pension during any period
of such disability for which he or she has no right to
receive salary.
An active officer who has completed 5 or more years of
service and is unable to perform his or her duties in the
department by reason of a disabling cancer, which develops or
manifests itself during a period while the officer is in the
service of the department, is entitled to receive an
occupational disease disability benefit during any period of
such disability for which he or she does not have a right to
receive salary. In order to receive this occupational
disease disability benefit, the cancer must be of a type that
may be caused by exposure to heat, radiation, or a known
carcinogen as defined by the International Agency for
Research on Cancer.
An officer who, after the effective date of this
amendatory Act of 1998, enters the service of a combined
police and fire department and has regular firefighting
duties shall be examined by one or more practicing physicians
appointed by the board. If the examination discloses
impairment of the heart, lungs, or respiratory tract, or the
existence of cancer, the officer shall not be entitled to an
occupational disease disability pension under this Section
unless and until a subsequent examination reveals no such
impairment or cancer.
The occupational disease disability pension shall be 65%
of the salary attached to the rank held by the officer at the
time of his or her removal from the municipality's department
payroll.
The occupational disease disability pension is payable to
the officer during the period of the disability. If the
disability ceases before the death of the officer, the
disability pension payable under this Section shall also
cease and the officer thereafter shall receive such pension
benefits as are provided in accordance with other provisions
of this Article.
If an officer dies while still disabled and receiving a
disability pension under this Section, the disability pension
shall continue to be paid to the officer's survivors in the
sequence provided in Section 3-112.
(40 ILCS 5/3-121) (from Ch. 108 1/2, par. 3-121)
Sec. 3-121. Marriage and remarriage. The pensions
provided in Sections 3-112, 3-114.1, and 3-114.2, and 3-114.6
shall not be paid to a child or dependent parent after
marriage or remarriage of the child or dependent parent
following the death of the police officer.
The pensions provided in Sections 3-112, 3-114.1 and
3-114.2 shall not be paid to a surviving spouse after
remarriage following the death of the police officer, if the
remarriage occurs (i) prior to January 1, 1974 or (ii) after
December 31, 1974 but before the effective date of this
amendatory Act of 1995. Remarriage on or after the effective
date of this amendatory Act of 1995 does not affect the
surviving spouse's eligibility for those pensions, regardless
of whether the deceased police officer was in service on or
after that effective date. A surviving spouse whose pension
was terminated due to remarriage during 1974, and who applies
for reinstatement of that pension before January 1, 1990,
shall be entitled to have the pension reinstated beginning on
January 1, 1990.
(Source: P.A. 89-408, eff. 11-15-95.)
(40 ILCS 5/5-156) (from Ch. 108 1/2, par. 5-156)
Sec. 5-156. Proof of duty or ordinary disability -
Physical examinations. Proof of duty, occupational disease,
or ordinary disability shall be furnished to the board by at
least one licensed and practicing physician appointed by the
board. In cases where the board requests an applicant to get
a second opinion, the applicant must select a physician from
a list of qualified licensed and practicing physicians who
specialize in the various medical areas related to duty
injuries and illnesses, as established by the board. The
board may require other evidence of disability. A disabled
policeman who receives a duty, occupational disease, or
ordinary disability benefit shall be examined at least once a
year by one or more physicians appointed by the board. When
the disability ceases, the board shall discontinue payment of
the benefit, and the policeman shall be returned to active
service.
(Source: P.A. 86-272.)
(40 ILCS 5/5-157) (from Ch. 108 1/2, par. 5-157)
Sec. 5-157. Administration of disability benefits.
If a policeman who is granted duty or ordinary disability
benefit refuses to submit to examination by a physician
appointed by the board, he shall have no further right to
receive the benefit.
A policeman who has withdrawn from service while disabled
and entered upon annuity prior to the effective date, and who
has thereafter been reinstated as a policeman, shall have no
right to ordinary disability benefit in excess of the amount
previously received unless he serves at least one year after
such reinstatement. This provision shall apply throughout
the duration of any disability incurred by the policeman
within one year after his reinstatement resulting from any
cause other than injury incurred in the performance of an act
of duty.
A policeman who assumes regular employment for
compensation, while in receipt of ordinary or duty disability
benefits, shall not be entitled to receive any amount of such
disability benefits which, when added to his compensation for
such employment during disability, would exceed 150% of the
rate of salary which would be paid to him if he were working
in his regularly appointed civil service position as a
policeman; or, from and after January 1, 1970, the rate of
salary on which his disability benefit is based. The changes
made to this Section by this amendatory Act of 1998 are not
limited to persons in service on or after the effective date
of this amendatory Act.
Disability benefit shall not be paid for any part of time
for which a disabled policeman shall receive any part of his
salary.
Except as herein otherwise provided, disability benefit
shall not be paid for any disability based upon or caused by
any mental or physical defect which the policeman had at the
time he entered the police service.
Disability benefit shall not be allowed to any policeman
who re-enters the public service in any capacity where his
salary is payable in whole or in part by taxes levied upon
taxable property in the city in which this Article is in
effect, or out of special revenues of any department of the
city. The disability benefit shall be suspended during the
period he is in the public service for compensation, and
shall be resumed when he withdraws from such service.
Any disability benefit paid in violation of this Section
or of this Article shall be construed to have been paid in
error, and the amounts so paid shall be charged as a debit in
the account of any person to whom the same was paid and shall
be deducted from any moneys thereafter payable to such person
out of this fund, or to the widow, heirs or estate of such
person.
(Source: P.A. 76-847.)
(40 ILCS 5/5-167.4) (from Ch. 108 1/2, par. 5-167.4)
Sec. 5-167.4. Widow annuitant minimum annuity.
(a) Notwithstanding any other provision of this Article,
beginning January 1, 1996, the minimum amount of widow's
annuity payable to any person who is entitled to receive a
widow's annuity under this Article is $700 per month, without
regard to whether the deceased policeman is in service on or
after the effective date of this amendatory Act of 1995.
Notwithstanding any other provision of this Article,
beginning January 1, 1999, the minimum amount of widow's
annuity payable to any person who is entitled to receive a
widow's annuity under this Article is $800 per month, without
regard to whether the deceased policeman is in service on or
after the effective date of this amendatory Act of 1998.
(b) Effective January 1, 1994, the minimum amount of
widow's annuity shall be $700 per month for the following
classes of widows, without regard to whether the deceased
policeman is in service on or after the effective date of
this amendatory Act of 1993: (1) the widow of a policeman who
dies in service with at least 10 years of service credit, or
who dies in service after June 30, 1981; and (2) the widow of
a policeman who withdraws from service with 20 or more years
of service credit and does not withdraw a refund, provided
that the widow is married to the policeman before he
withdraws from service.
(c) The city, in addition to the contributions otherwise
made by it under the other provisions of this Article, shall
make such contributions as are necessary for the minimum
widow's annuities provided under this Section in the manner
prescribed in Section 5-175.
(Source: P.A. 89-12, eff. 4-20-95.)
(40 ILCS 5/5-168) (from Ch. 108 1/2, par. 5-168)
Sec. 5-168. Financing.
(a) Except as expressly provided in this Section, the
city shall levy a tax annually upon all taxable property
therein for the purpose of providing revenue for the fund.
The tax shall be at a rate that will produce a sum which,
when added to the amounts deducted from the policemen's
salaries and the amounts deposited in accordance with
subsection (g), is sufficient for the purposes of the fund.
For the years 1968 and 1969, the city council shall levy
a tax annually at a rate on the dollar of the assessed
valuation of all taxable property that will produce, when
extended, not to exceed $9,700,000. Beginning with the year
1970 and each year thereafter the city council shall levy a
tax annually at a rate on the dollar of the assessed
valuation of all taxable property that will produce when
extended an amount not to exceed the total amount of
contributions by the policemen to the Fund made in the
calendar year 2 years before the year for which the
applicable annual tax is levied, multiplied by 1.40 for the
tax levy year 1970; by 1.50 for the year 1971; by 1.65 for
1972; by 1.85 for 1973; by 1.90 for 1974; by 1.97 for 1975
through 1981; by 2.00 for 1982 and for each year thereafter.
(b) The tax shall be levied and collected in like manner
with the general taxes of the city, and is in addition to all
other taxes which the city is now or may hereafter be
authorized to levy upon all taxable property therein, and is
exclusive of and in addition to the amount of tax the city is
now or may hereafter be authorized to levy for general
purposes under any law which may limit the amount of tax
which the city may levy for general purposes. The county
clerk of the county in which the city is located, in reducing
tax levies under Section 8-3-1 of the Illinois Municipal
Code, shall not consider the tax herein authorized as a part
of the general tax levy for city purposes, and shall not
include the tax in any limitation of the percent of the
assessed valuation upon which taxes are required to be
extended for the city.
(c) On or before January 10 of each year, the board
shall notify the city council of the requirement that the tax
herein authorized be levied by the city council for that
current year. The board shall compute the amounts necessary
for the purposes of this fund to be credited to the reserves
established and maintained within the fund; shall make an
annual determination of the amount of the required city
contributions; and shall certify the results thereof to the
city council.
As soon as any revenue derived from the tax is collected
it shall be paid to the city treasurer of the city and shall
be held by him for the benefit of the fund in accordance with
this Article.
(d) If the funds available are insufficient during any
year to meet the requirements of this Article, the city may
issue tax anticipation warrants against the tax levy for the
current fiscal year.
(e) The various sums, including interest, to be
contributed by the city, shall be taken from the revenue
derived from such tax or otherwise as expressly provided in
this Section. Any moneys of the city derived from any source
other than the tax herein authorized shall not be used for
any purpose of the fund nor the cost of administration
thereof, unless applied to make the deposit expressly
authorized in this Section or the additional city
contributions required under subsection (h).
(f) If it is not possible or practicable for the city to
make its contributions at the time that salary deductions are
made, the city shall make such contributions as soon as
possible thereafter, with interest thereon to the time it is
made.
(g) In lieu of levying all or a portion of the tax
required under this Section in any year, the city may deposit
with the city treasurer no later than March 1 of that year
for the benefit of the fund, to be held in accordance with
this Article, an amount that, together with the taxes levied
under this Section for that year, is not less than the amount
of the city contributions for that year as certified by the
board to the city council. The deposit may be derived from
any source legally available for that purpose, including, but
not limited to, the proceeds of city borrowings. The making
of a deposit shall satisfy fully the requirements of this
Section for that year to the extent of the amounts so
deposited. Amounts deposited under this subsection may be
used by the fund for any of the purposes for which the
proceeds of the tax levied under this Section may be used,
including the payment of any amount that is otherwise
required by this Article to be paid from the proceeds of that
tax.
(h) In addition to the contributions required under the
other provisions of this Article, by November 1 of the
following specified years, the city shall deposit with the
city treasurer for the benefit of the fund, to be held and
used in accordance with this Article, the following specified
amounts: $6,300,000 in 1999; $5,880,000 in 2000; $5,460,000
in 2001; $5,040,000 in 2002; $4,620,000 in 2003; $4,200,000
in 2004; $3,780,000 in 2005; $3,360,000 in 2006; $2,940,000
in 2007; $2,520,000 in 2008; $2,100,000 in 2009; $1,680,000
in 2010; $1,260,000 in 2011; $840,000 in 2012; and $420,000
in 2013.
The additional city contributions required under this
subsection are intended to decrease the unfunded liability of
the fund and shall not decrease the amount of the city
contributions required under the other provisions of this
Article. The additional city contributions made under this
subsection may be used by the fund for any of its lawful
purposes.
(Source: P.A. 89-12, eff. 4-20-95.)
(40 ILCS 5/5-172) (from Ch. 108 1/2, par. 5-172)
Sec. 5-172. Contributions by city for duty and
occupational disease disability benefits and supplemental
annuity. In lieu of salary deductions for annuity purposes,
the city shall contribute the required amounts for any period
during which a policeman receives a duty disability benefit
or occupational disease disability benefit. The
contributions shall be credited to the disabled policeman and
shall be regarded for all purposes hereof as sums deducted
from his salary.
The city shall also contribute all amounts ordinarily
contributed by it for annuity purposes for the policeman as
though he were in active discharge of his duties during such
disability.
To provide supplemental annuity, the city shall
contribute such equal sums annually, from the date of the
policeman's death, which if improved by interest will be
sufficient, when payment of compensation annuity ceases, to
provide supplemental annuity to the widow for life.
(Source: P.A. 81-1536.)
(40 ILCS 5/5-204) (from Ch. 108 1/2, par. 5-204)
Sec. 5-204. Duty disability reserve. Amounts contributed
by the city for duty disability benefit, occupational disease
disability benefit, child's disability benefit, and
compensation annuity shall be credited to this reserve, and
all such benefits and annuities shall be charged to it.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/6-128.4) (from Ch. 108 1/2, par. 6-128.4)
Sec. 6-128.4. Minimum widow's annuities.
(a) Notwithstanding any other provision of this Article,
beginning January 1, 1996, the minimum amount of widow's
annuity payable to any person who is entitled to receive a
widow's annuity under this Article is $700 per month, without
regard to whether the deceased fireman is in service on or
after the effective date of this amendatory Act of 1995.
(b) Notwithstanding Section 6-128.3, beginning January
1, 1994, the minimum widow's annuity under this Article shall
be $700 per month for (1) all persons receiving widow's
annuities on that date who are survivors of employees who
retired at age 50 or over with at least 20 years of service,
and (2) persons who become eligible for widow's annuities and
are survivors of employees who retired at age 50 or over with
at least 20 years of service.
(c) Notwithstanding Section 6-128.3, beginning January
1, 1999, the minimum widow's annuity under this Article shall
be $800 per month for (1) all persons receiving widow's
annuities on that date who are survivors of employees who
retired at age 50 or over with at least 20 years of service,
and (2) persons who become eligible for widow's annuities and
are survivors of employees who retired at age 50 or over with
at least 20 years of service.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/6-165) (from Ch. 108 1/2, par. 6-165)
Sec. 6-165. Financing; tax.
(a) Except as expressly provided in this Section, each
city shall levy a tax annually upon all taxable property
therein for the purpose of providing revenue for the fund.
For the years prior to the year 1960, the tax rate shall be
as provided for in the "Firemen's Annuity and Benefit Fund of
the Illinois Municipal Code". The tax, from and after
January 1, 1968 to and including the year 1971, shall not
exceed .0863% of the value, as equalized or assessed by the
Department of Revenue, of all taxable property in the city.
Beginning with the year 1972 and each year thereafter the
city 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 such city that will produce,
when extended, not to exceed an amount equal to the total
amount of contributions by the employees to the fund made in
the calendar year 2 years prior to the year for which the
annual applicable tax is levied, multiplied by 2.23 through
the calendar year 1981, and by 2.26 for the year 1982 and for
each year thereafter.
To provide revenue for the ordinary death benefit
established by Section 6-150 of this Article, in addition to
the contributions by the firemen for this purpose, the city
council shall for the year 1962 and each year thereafter
annually levy a tax, which shall be in addition to and
exclusive of the taxes authorized to be levied under the
foregoing provisions of this Section, upon all taxable
property in the city, as equalized or assessed by the
Department of Revenue, at such rate per cent of the value of
such property as shall be sufficient to produce for each year
the sum of $142,000.
The amounts produced by the taxes levied annually,
together with the deposit expressly authorized in this
Section, shall be sufficient, when added to the amounts
deducted from the salaries of firemen and applied to the
fund, to provide for the purposes of the fund.
(b) The taxes shall be levied and collected in like
manner with the general taxes of the city, and shall be in
addition to all other taxes which the city may levy upon all
taxable property therein and shall be exclusive of and in
addition to the amount of tax the city may levy for general
purposes under Section 8-3-1 of the Illinois Municipal Code,
approved May 29, 1961, as amended, or under any other law or
laws which may limit the amount of tax which the city may
levy for general purposes.
(c) The amounts of the taxes to be levied in each year
shall be certified to the city council by the board.
(d) As soon as any revenue derived from such taxes is
collected, it shall be paid to the city treasurer and held
for the benefit of the fund, and all such revenue shall be
paid into the fund in accordance with the provisions of this
Article.
(e) If the funds available are insufficient during any
year to meet the requirements of this Article, the city may
issue tax anticipation warrants, against the tax levies
herein authorized for the current fiscal year.
(f) The various sums, hereinafter stated, including
interest, to be contributed by the city, shall be taken from
the revenue derived from the taxes or otherwise as expressly
provided in this Section. Except for defraying the cost of
administration of the fund during the calendar year in which
a city first attains a population of 500,000 and comes under
the provisions of this Article and the first calendar year
thereafter, any money of the city derived from any source
other than these taxes or the sale of tax anticipation
warrants shall not be used to provide revenue for the fund,
nor to pay any part of the cost of administration thereof,
unless applied to make the deposit expressly authorized in
this Section or the additional city contributions required
under subsection (h).
(g) In lieu of levying all or a portion of the tax
required under this Section in any year, the city may deposit
with the city treasurer no later than March 1 of that year
for the benefit of the fund, to be held in accordance with
this Article, an amount that, together with the taxes levied
under this Section for that year, is not less than the amount
of the city contributions for that year as certified by the
board to the city council. The deposit may be derived from
any source legally available for that purpose, including, but
not limited to, the proceeds of city borrowings. The making
of a deposit shall satisfy fully the requirements of this
Section for that year to the extent of the amounts so
deposited. Amounts deposited under this subsection may be
used by the fund for any of the purposes for which the
proceeds of the taxes levied under this Section may be used,
including the payment of any amount that is otherwise
required by this Article to be paid from the proceeds of
those taxes.
(h) In addition to the contributions required under the
other provisions of this Article, by November 1 of the
following specified years, the city shall deposit with the
city treasurer for the benefit of the fund, to be held and
used in accordance with this Article, the following specified
amounts: $6,300,000 in 1999; $5,880,000 in 2000; $5,460,000
in 2001; $5,040,000 in 2002; $4,620,000 in 2003; $4,200,000
in 2004; $3,780,000 in 2005; $3,360,000 in 2006; $2,940,000
in 2007; $2,520,000 in 2008; $2,100,000 in 2009; $1,680,000
in 2010; $1,260,000 in 2011; $840,000 in 2012; and $420,000
in 2013.
The additional city contributions required under this
subsection are intended to decrease the unfunded liability of
the fund and shall not decrease the amount of the city
contributions required under the other provisions of this
Article. The additional city contributions made under this
subsection may be used by the fund for any of its lawful
purposes.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/7-146) (from Ch. 108 1/2, par. 7-146)
Sec. 7-146. Temporary disability benefits - Eligibility.
Temporary disability benefits shall be payable to
participating employees as hereinafter provided.
(a) The participating employee shall be considered
temporarily disabled if:
1. He is unable to perform the duties of any position
which might reasonably be assigned to him by his employing
municipality or instrumentality thereof or participating
instrumentality due to mental or physical disability caused
by bodily injury or disease, other than as a result of
self-inflicted injury or addiction to narcotic drugs;
2. The Board has received written certifications from at
least 1 licensed and practicing physician and the governing
body of the employing municipality or instrumentality thereof
or participating instrumentality stating that the employee
meets the conditions set forth in subparagraph 1 of this
paragraph (a).
(b) A temporary disability benefit shall be payable to a
temporarily disabled employee provided:
1. He:
(i) has at least one 1 year of service immediately
preceding at the date the temporary disability was incurred
and has made contributions to the fund for at least the
number of months of service normally required in his position
during a 12-month period, or has at least 5 years of service
credit, the last year of which immediately precedes such
date; or
(ii) had qualified under clause (i) above, but had an
interruption in service with the same participating
municipality or participating instrumentality of not more
than 3 months in the 12 months preceding the date the
temporary disability was incurred and was not paid a
separation benefit; or
(iii) had qualified under clause (i) above, but had an
interruption after 20 or more years of creditable service,
was not paid a separation benefit, and returned to service
prior to the date the disability was incurred.
Item (iii) of this subdivision shall apply to all
employees whose disabilities were incurred on or after July
1, 1985, and any such employee who becomes eligible for a
disability benefit under item (iii) shall be entitled to
receive a lump sum payment of any accumulated disability
benefits which may accrue from the date the disability was
incurred until the effective date of this amendatory Act of
1987.
Periods of qualified leave granted in compliance with the
federal Family and Medical Leave Act shall be ignored for
purposes of determining the number of consecutive months of
employment under this subdivision (b)1.
2. He has been temporarily disabled for at least 30
days, except where a former temporary or permanent and total
disability has reoccurred within 6 months after the employee
has returned to service.
3. He is receiving no earnings from a participating
municipality or instrumentality thereof or participating
instrumentality, except as allowed under subsection (f) of
Section 7-152.
4. He has not refused to submit to a reasonable physical
examination by a physician appointed by the Board.
5. His disability is not the result of a mental or
physical condition which existed on the earliest date of
service from which he has uninterrupted service, including
prior service, at the date of his disability, provided that
this limitation shall not be applicable to a participating
employee who: (i) on the date of disability has 5 years of
creditable service, exclusive of creditable service for
periods of disability; or (ii) received no medical treatment
for the condition for the 3 years immediately prior to such
earliest date of service.
6. He is not separated from the service of the
participating municipality or instrumentality thereof or
participating instrumentality which employed him on the date
his temporary disability was incurred; for the purposes of
payment of temporary disability benefits, a participating
employee, whose employment relationship is terminated by his
employing municipality, shall be deemed not to be separated
from the service of his employing municipality or
participating instrumentality if he continues disabled by the
same condition and so long as he is otherwise entitled to
such disability benefit.
(Source: P.A. 86-272; 87-740.)
(40 ILCS 5/7-150) (from Ch. 108 1/2, par. 7-150)
Sec. 7-150. Total and permanent disability benefits -
Eligibility. Total and permanent disability benefits shall be
payable to participating employees as hereinafter provided,
including those employees receiving disability benefit on
July 1, 1962.
(a) A participating employee shall be considered totally
and permanently disabled if:
1. He is unable to engage in any gainful activity
because of any medically determinable physical or mental
impairment which can be expected to result in death or be of
a long continued and indefinite duration, other than as a
result of self-inflicted injury or addiction to narcotic
drugs;
2. The Board has received a written certification by at
least 1 licensed and practicing physician stating that the
employee meets the qualifications of subparagraph 1 of this
paragraph (a).
(b) A totally and permanently disabled employee is
entitled to a permanent disability benefit provided:
1. He has exhausted his temporary disability benefits.
2. He:
(i) has at least one year of service immediately
preceding the date the disability was incurred and has made
contributions to the fund for at least the number of months
of service normally required in his position during a 12
month period, or has at least 5 years of service credit, the
last year of which immediately preceded the date the
disability was incurred; or
(ii) had qualified under clause (i) above, but had an
interruption in service with the same participating
municipality or participating instrumentality of not more
than 3 months in the 12 months preceding the date the
temporary disability was incurred and was not paid a
separation benefit; or
(iii) had qualified under clause (i) above, but had an
interruption after 20 or more years of creditable service,
was not paid a separation benefit, and returned to service
prior to the date the disability was incurred.
Item (iii) of this subdivision shall apply to all
employees whose disabilities were incurred on or after July
1, 1985, and any such employee who becomes eligible for a
disability benefit under item (iii) shall be entitled to
receive a lump sum payment of any accumulated disability
benefits which may accrue from the date the disability was
incurred until the effective date of this amendatory Act of
1987.
Periods of qualified leave granted in compliance with the
federal Family and Medical Leave Act shall be ignored for
purposes of determining the number of consecutive months of
employment under this subdivision (b)2.
3. He is receiving no earnings from a participating
municipality or instrumentality thereof or participating
instrumentality, except as allowed under subsection (f) of
Section 7-152.
4. He has not refused to submit to a reasonable physical
examination by a physician appointed by the Board.
5. His disability is not the result of a mental or
physical condition which existed on the earliest date of
service from which he has uninterrupted service, including
prior service, at the date of his disability, provided that
this limitation shall not be applicable to a participating
employee who, without receiving a disability benefit,
receives 5 years of creditable service.
6. He is not separated from the service of his employing
participating municipality or instrumentality thereof or
participating instrumentality on the date his temporary
disability was incurred; for the purposes of payment of total
and permanent disability benefits, a participating employee,
whose employment relationship is terminated by his employing
municipality, shall be deemed not to be separated from the
service of his employing municipality or participating
instrumentality if he continues disabled by the same
condition and so long as he is otherwise entitled to such
disability benefit.
7. He has not refused to apply for a disability benefit
under the Federal Social Security Act at the request of the
Board.
(c) A participating employee shall remain eligible and
may make application for a total and permanent disability
benefit within 90 days after the termination of his temporary
disability benefits or within such longer period terminating
at the end of the period during which his employing
municipality is prevented from employing him by reason of any
statutory prohibition.
(Source: P.A. 86-272; 87-740.)
(40 ILCS 5/7-159) (from Ch. 108 1/2, par. 7-159)
Sec. 7-159. Surviving spouse annuity - refund of survivor
credits.
(a) Any employee annuitant who (1) upon the date a
retirement annuity begins is not then married, or (2) is
married to a person who would not qualify for surviving
spouse annuity if the person died on such date, is entitled
to a refund of the survivor credits including interest
accumulated on the date the annuity begins, excluding
survivor credits and interest thereon credited during periods
of disability, and no spouse shall have a right to any
surviving spouse annuity from this Fund. If the employee
annuitant reenters service and upon subsequent retirement has
a spouse who would qualify for a surviving spouse annuity,
the employee annuitant may pay the fund the amount of the
refund plus interest at the effective rate at the date of
payment. The payment shall qualify the spouse for a
surviving spouse annuity and the amount paid shall be
considered as survivor contributions.
(b) Instead of a refund under subsection (a), the
retiring employee may elect to convert the amount of the
refund into an annuity, payable separately from the
retirement annuity. If the annuitant dies before the
guaranteed amount has been distributed, the remainder shall
be paid in a lump sum to the designated beneficiary of the
annuitant. The Board shall adopt any rules necessary for the
implementation of this subsection.
(Source: P. A. 77-2121.)
(40 ILCS 5/7-173.1) (from Ch. 108 1/2, par. 7-173.1)
Sec. 7-173.1. Additional contribution by sheriff's law
enforcement employees.
(a) Each sheriff's law enforcement employee shall make
an additional contribution of 1% of earnings, which shall be
considered as normal contributions. For earnings on or after
July 1, 1988, the additional contribution shall be 2% of
earnings.
This additional contribution shall be payable for
retroactive service periods which the employee elects to
establish and to periods of authorized leave of absence.
(b) If the employee is awarded a retirement annuity
under Section 7-142 and not under Section 7-142.1, then the
additional contribution required under this Section shall be
refunded with interest or paid as provided in subsection (c).
If the employee returns to a participating status as a
sheriff's law enforcement employee, the employee may repay
the amount refunded with interest and upon subsequent
retirement be entitled to a recomputation of the retirement
annuity under Section 7-142.1 if the total service as a
sheriff's law enforcement employee meets the requirements of
that Section.
(c) Instead of a refund under subsection (b), the
retiring employee may elect to convert the amount of the
refund into an annuity, payable separately from the
retirement annuity. If the annuitant dies before the
guaranteed amount has been distributed, the remainder shall
be paid in a lump sum to the designated beneficiary of the
annuitant. The Board shall adopt any rules necessary for the
implementation of this subsection.
(Source: P.A. 85-941.)
(40 ILCS 5/7-173.2) (from Ch. 108 1/2, par. 7-173.2)
Sec. 7-173.2. Pickup of employee contributions.
(a) Until July 1, 1984, each participating municipality
and each participating instrumentality may elect, for all of
its employees, to pick up the employee contributions required
by subparagraphs 1 and 3 of subsection (a) of Section 7-173
and, in the case of sheriff's law enforcement employees,
required by Section 7-173.1. The pick up may be for employee
contributions on earnings received by employees after
December 31, 1981 and shall be applicable to the
contributions on total earnings paid in any month. The
decision to pick up contributions shall be made by the
governing body.
Beginning July 1, 1984, the pick up of employee
contributions shall cease to be optional. Each participating
municipality and participating instrumentality shall pick up
the employee contributions required by subparagraphs 1 and 3
of subsection (a) of Section 7-173 and, in the case of
sheriff's law enforcement employees, contributions required
by Section 7-173.1, for all compensation earned after such
date.
(b) Contributions that are picked up shall be treated as
employer contributions in determining tax treatment under the
United States Internal Revenue Code. The employee
contribution shall be paid from the same source of funds as
is used in payment of earnings to the employee and may not be
paid from funds raised by the tax levy authorized by Section
7-171. The contributions shall be picked up by a reduction
in earnings payment to employees. Employee contributions
that are picked up shall be considered as earnings under
Section 7-114. The pick up shall not apply to contributions
made for additional contributions under subsection (a) 2 of
Section 7-173, authorized leave of absence under subsection
(a)4 of Section 7-139, out-of-state service under subsection
(a) 6 of Section 7-139, retroactive service under subsection
(a) 7 of Section 7-139 or repayments of separation of
benefits under Section 7-109. If a participating
municipality or participating instrumentality fails to report
participating employee earnings which should have been
reported to the fund and pays the employee the full amount of
earnings including employee contributions which should have
been picked up and forwarded to the fund, then the employee
shall make payment of the employee contributions to the fund
on behalf of employer and such contributions shall be
considered as picked up contributions if paid in the year the
earnings were received, or by January 31st of the following
year, and are reflected as picked up on reports to the
Internal Revenue Service. If they cannot be so reflected, or
if received after that date, they shall not be treated as
picked up contributions. Picked up employee contributions
shall be considered as employee contributions in computing
benefits paid under this Article 7.
(c) Subject to the requirements of federal law, an
employee may elect to have the employer pick up optional
contributions that the employee has elected to pay to the
Fund, 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 source
of funds that is used to pay earnings to the employee. The
employee's election to have the optional contributions picked
up is irrevocable and the optional contributions may not
thereafter be prepaid, by direct payment or otherwise.
(Source: P.A. 84-812.)
(40 ILCS 5/8-137) (from Ch. 108 1/2, par. 8-137)
Sec. 8-137. Automatic increase in annuity.
(a) An employee who retired or retires from service
after December 31, 1959 and before January 1, 1987, having
attained age 60 or more, shall, in January of the year after
the year in which the first anniversary of retirement occurs,
have the amount of 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%, and beginning with January of
the year 1984 such increases shall be at the rate of 3%.
Beginning in January of 1999, such increases shall be at the
rate of 3% of the currently payable monthly annuity,
including any increases previously granted under this
Article. An such employee who retires on annuity after
December 31, 1959 and before January 1, 1987, but before age
60, shall receive such increases beginning in January of the
year after the year in which he attains age 60.
An employee who retires from service on or after January
1, 1987 shall, upon the first annuity payment date following
the first anniversary of the date of retirement, or upon the
first annuity payment date following attainment of age 60,
whichever occurs later, have his then fixed and payable
monthly annuity increased by 3%, and such annuity shall be
increased by an additional 3% of the original fixed annuity
on the same date each year thereafter. Beginning in January
of 1999, such increases shall be at the rate of 3% of the
currently payable monthly annuity, including any increases
previously granted under this Article.
(b) The foregoing provision is not applicable to an
employee retiring and receiving a term annuity, as herein
defined, nor to any otherwise qualified employee who retires
before he makes employee contributions (at the 1/2 of 1% rate
as provided in this Act) 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 1/2 of 1% contributions, based on his final salary,
as will bring such 1/2 of 1% contributions, computed without
interest, to the equivalent of or completion of one year's
contributions.
Beginning with 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 made for annuity purposes.
Each such additional contribution shall be credited to an
account in the prior service annuity reserve, to be used,
together with city contributions, to defray the cost of the
specified annuity increments. Any balance in such account at
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, and in cases where a term
annuity becomes payable. In such cases his contributions
shall be refunded, without interest, and charged to such
account in the prior service annuity reserve.
(Source: P.A. 84-1472.)
(40 ILCS 5/8-137.1) (from Ch. 108 1/2, par. 8-137.1)
Sec. 8-137.1. Automatic increases in annuity for certain
heretofore retired participants. A retired municipal
employee who (a) is receiving annuity based on a service
credit of 20 or more years regardless of age at retirement or
based on a service credit of 15 or more years with retirement
at age 55 or over, and (b) does not qualify for the automatic
increases in annuity provided for in Section 8-137 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 amount of final monthly salary times
the number of full years of service on which the annuity was
based in those cases where the annuity was computed on the
money purchase formula and in those cases in which the
annuity was computed under the minimum annuity formula
provisions of this Article a sum equal to 1% of the average
monthly salary on which the annuity was based times such
number of full years of service, 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%, and beginning January of the year 1984 such
increases shall be at the rate of 3%. Beginning in January
of 1999, such increases shall be at the rate of 3% of the
currently payable monthly annuity, including any increases
previously granted under this Article.
Whenever the retired municipal employee receiving annuity
has attained the age of 66 or more in 1969, he shall have
such annuity increased in January, 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 if
retired at or before age 65, or from and including January of
the year immediately following the year of retirement if
retired at an age greater than 65, to and including January,
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%, and beginning January of the year
1984 such increases shall be at the rate of 3%. Beginning in
January of 1999, such increases shall be at the rate of 3% of
the currently payable monthly annuity, including any
increases previously granted under this Article.
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 Section 8-221.
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 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. 83-802.)
(40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
Sec. 8-138. Minimum annuities - Additional provisions.
(a) An employee who withdraws after age 65 or more with
at least 20 years of service, for whom the amount of age and
service and prior service annuity combined is less than the
amount stated in this Section, shall from the date of
withdrawal, instead of all annuities otherwise provided, be
entitled to receive an annuity for life of $150 a year, plus
1 1/2% for each year of service, to and including 20 years,
and 1 2/3% for each year of service over 20 years, of his
highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal.
An employee who withdraws after 20 or more years of
service, before age 65, shall be entitled to such annuity, to
begin not earlier than upon attained age of 55 years if under
such age at withdrawal, reduced by 2% for each full year or
fractional part thereof that his attained age is less than
65, plus an additional 2% reduction for each full year or
fractional part thereof that his attained age when annuity is
to begin is less than 60 so that the total reduction at age
55 shall be 30%.
(b) An employee who withdraws after July 1, 1957, at age
60 or over, with 20 or more years of service, for whom the
age and service and prior service annuity combined, is less
than the amount stated in this paragraph, shall, from the
date of withdrawal, instead of such annuities, be entitled to
receive an annuity for life equal to 1 2/3% for each year of
service, of the highest average annual salary for any 5
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal; provided, that
in the case of any employee who withdraws on or after July 1,
1971, such employee age 60 or over with 20 or more years of
service, shall receive an annuity for life equal to 1.67% for
each of the first 10 years of service; 1.90% for each of the
next 10 years of service; 2.10% for each year of service in
excess of 20 but not exceeding 30; and 2.30% for each year of
service in excess of 30, 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.
An employee who withdraws after July 1, 1957 and before
January 1, 1988, with 20 or more years of service, before age
60 years is entitled to annuity, to begin not earlier than
upon attained age of 55 years, if under such age at
withdrawal, as computed in the last preceding paragraph,
reduced 0.25% for each full month or fractional part thereof
that his attained age when annuity is to begin is less than
60 if the employee was born before January 1, 1936, or 0.5%
for each such month if the employee was born on or after
January 1, 1936.
Any employee born before January 1, 1936, who withdraws
with 20 or more years of service, and any employee with 20 or
more years of service who withdraws on or after January 1,
1988, may elect to receive, in lieu of any other employee
annuity provided in this Section, an annuity for life equal
to 1.80% for each of the first 10 years of service, 2.00% for
each of the next 10 years of service, 2.20% for each year of
service in excess of 20 but not exceeding 30, and 2.40% for
each year of service in excess of 30, of the highest average
annual salary for any 4 consecutive years within the last 10
years of service immediately preceding the date of
withdrawal, to begin not earlier than upon attained age of 55
years, if under such age at withdrawal, reduced 0.25% for
each full month or fractional part thereof that his attained
age when annuity is to begin is less than 60; except that an
employee retiring on or after January 1, 1988, at age 55 or
over but less than age 60, having at least 35 years of
service, or an employee retiring on or after July 1, 1990, at
age 55 or over but less than age 60, having at least 30 years
of service, or an employee retiring on or after the effective
date of this amendatory Act of 1997, at age 55 or over but
less than age 60, having at least 25 years of service, shall
not be subject to the reduction in retirement annuity because
of retirement below age 60.
However, in the case of an employee who retired on or
after January 1, 1985 but before January 1, 1988, at age 55
or older and with at least 35 years of service, and who was
subject under this subsection (b) to the reduction in
retirement annuity because of retirement below age 60, that
reduction shall cease to be effective January 1, 1991, and
the retirement annuity shall be recalculated accordingly.
Any employee who withdraws on or after July 1, 1990, with
20 or more years of service, may elect to receive, in lieu of
any other employee annuity provided in this Section, an
annuity for life equal to 2.20% for each year of service of
the highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal, to begin not earlier than upon attained
age of 55 years, if under such age at withdrawal, reduced
0.25% for each full month or fractional part thereof that his
attained age when annuity is to begin is less than 60; except
that an employee retiring at age 55 or over but less than age
60, having at least 30 years of service, shall not be subject
to the reduction in retirement annuity because of retirement
below age 60.
Any employee who withdraws on or after the effective date
of this amendatory Act of 1997 with 20 or more years of
service may elect to receive, in lieu of any other employee
annuity provided in this Section, an annuity for life equal
to 2.20%, for each year of service, of the highest average
annual salary for any 4 consecutive years within the last 10
years of service immediately preceding the date of
withdrawal, to begin not earlier than upon attainment of age
55 (age 50 if the employee has at least 30 years of service),
reduced 0.25% for each full month or remaining fractional
part thereof that the employee's attained age when annuity is
to begin is less than 60; except that an employee retiring at
age 50 or over with at least 30 years of service or at age 55
or over with at least 25 years of service shall not be
subject to the reduction in retirement annuity because of
retirement below age 60.
The maximum annuity payable under part (a) and (b) of
this Section shall not exceed 70% of highest average annual
salary in the case of an employee who withdraws prior to July
1, 1971, and 75% if withdrawal takes place on or after July
1, 1971. For the purpose of the minimum annuity provided in
this Section $1,500 is considered the minimum annual salary
for any year; and the maximum annual salary for the
computation of such annuity is $4,800 for any year before
1953, $6000 for the years 1953 to 1956, inclusive, and the
actual annual salary, as salary is defined in this Article,
for any year thereafter.
To preserve rights existing on December 31, 1959, for
participants and contributors on that date to the fund
created by the Court and Law Department Employees' Annuity
Act, who became participants in the fund provided for on
January 1, 1960, the maximum annual salary to be considered
for such persons for the years 1955 and 1956 is $7,500.
(c) For an employee receiving disability benefit, his
salary for annuity purposes under paragraphs (a) and (b) of
this Section, for all periods of disability benefit
subsequent to the year 1956, is the amount on which his
disability benefit was based.
(d) An employee with 20 or more years of service, whose
entire disability benefit credit period expires before
attainment of age 55 while still disabled for service, is
entitled upon withdrawal to the larger of (1) the minimum
annuity provided above, assuming he is then age 55, and
reducing such annuity to its actuarial equivalent as of his
attained age on such date or (2) the annuity provided from
his age and service and prior service annuity credits.
(e) The minimum annuity provisions do not apply to any
former municipal employee receiving an annuity from the fund
who re-enters service as a municipal employee, unless he
renders at least 3 years of additional service after the date
of re-entry.
(f) An employee in service on July 1, 1947, or who
became a contributor after July 1, 1947 and before attainment
of age 70, who withdraws after age 65, with less than 20
years of service for whom the annuity has been fixed under
this Article shall, instead of the annuity so fixed, receive
an annuity as follows:
Such amount as he could have received had the accumulated
amounts for annuity been improved with interest at the
effective rate to the date of his withdrawal, or to
attainment of age 70, whichever is earlier, and had the city
contributed to such earlier date for age and service annuity
the amount that it would have contributed had he been under
age 65, after the date his annuity was fixed in accordance
with this Article, and assuming his annuity were computed
from such accumulations as of his age on such earlier date.
The annuity so computed shall not exceed the annuity which
would be payable under the other provisions of this Section
if the employee was credited with 20 years of service and
would qualify for annuity thereunder.
(g) Instead of the annuity provided in this Article, an
employee having attained age 65 with at least 15 years of
service who withdraws from service on or after July 1, 1971
and whose annuity computed under other provisions of this
Article is less than the amount provided under this
paragraph, is entitled to a minimum annuity for life equal to
1% of the highest average annual salary, as salary is defined
and limited in this Section for any 4 consecutive years
within the last 10 years of service for each year of service,
plus the sum of $25 for each year of service. The annuity
shall not exceed 60% of such highest average annual salary.
(g-1) Instead of any other retirement annuity provided
in this Article, an employee who has at least 10 years of
service and withdraws from service on or after January 1,
1999 may elect to receive a retirement annuity for life,
beginning no earlier than upon attainment of age 60, equal to
2.2% of final average salary for each year of service,
subject to a maximum of 75% of final average salary. For the
purpose of calculating this annuity, "final average salary"
means the highest average annual salary for any 4 consecutive
years in the last 10 years of service.
(h) The minimum annuities provided under this Section
shall be paid in equal monthly installments.
(i) The amendatory provisions of part (b) and (g) of
this Section shall be effective July 1, 1971 and apply in the
case of every qualifying employee withdrawing on or after
July 1, 1971.
(j) The amendatory provisions of this amendatory Act of
1985 (P.A. 84-23) relating to the discount of annuity because
of retirement prior to attainment of age 60, and to the
retirement formula, for those born before January 1, 1936,
shall apply only to qualifying employees withdrawing on or
after July 18, 1985.
(k) Beginning on January 1, 1999 the effective date of
this amendatory Act of 1997, the minimum amount of employee's
annuity shall be $850 $550 per month for life for the
following classes of employees, without regard to the fact
that withdrawal occurred prior to the effective date of this
amendatory Act of 1998 1997:
(1) any employee annuitant alive and receiving a
life annuity on the effective date of this amendatory Act
of 1998 1997, except a reciprocal annuity;
(2) any employee annuitant alive and receiving a
term annuity on the effective date of this amendatory Act
of 1998 1997, except a reciprocal annuity;
(3) any employee annuitant alive and receiving a
reciprocal annuity on the effective date of this
amendatory Act of 1998 1997, whose service in this fund
is at least 5 years;
(4) any employee annuitant withdrawing after age 60
on or after the effective date of this amendatory Act of
1998 1997, with at least 10 years of service in this
fund.
The increases granted under items (1), (2) and (3) of
this subsection (k) shall not be limited by any other Section
of this Act.
(Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
(40 ILCS 5/8-139) (from Ch. 108 1/2, par. 8-139)
Sec. 8-139. Reversionary annuity.
(a) An employee, prior to retirement on annuity, may
elect to take a lesser amount of annuity and provide, with
the actuarial value of the amount by which his annuity is
reduced, a reversionary annuity for a wife, husband, parent,
child, brother or sister. The option shall be exercised by
filing a written designation with the board prior to
retirement, and may be revoked by the employee at any time
before retirement. The death of the employee prior to his
retirement shall automatically void the option.
(b) The death of the designated reversionary annuitant
prior to the employee's retirement shall automatically void
the option. If the reversionary annuitant dies after the
employee's retirement, and before the death of the employee
annuitant, the reduced annuity being paid to the retired
employee annuitant shall be increased to the amount of
annuity before reduction for the reversionary annuity and no
reversionary annuity shall be payable.
The option is subject to the further condition that no
reversionary annuity shall be paid to a parent, child,
brother, or sister if the employee dies before the expiration
of 365 730 days from the date his written designation was
filed with the board, even though he has retired and is
receiving a reduced annuity.
(c) The employee exercising this option shall not reduce
his retirement annuity by more than $400 $200 a month, or
elect to provide a reversionary annuity of less than $50 per
month. No option shall be permitted if the reversionary
annuity for a widow, when added to the widow's annuity
payable under this Article, exceeds 100% 80% of the reduced
annuity payable to the employee.
(d) A reversionary annuity shall begin on the day
following the death of the annuitant and shall be paid as
provided in Section 8-125.
(e) The increases in annuity provided in Section 8-137
of this Article shall, as to an employee so electing a
reduced annuity relate to the amount of the original annuity,
and such amount shall constitute the annuity on which such
automatic increases shall be based.
(f) For annuities elected after June 30, 1983, the
amount of the monthly reversionary annuity shall be
determined by multiplying the amount of the monthly reduction
in the employee's annuity by the factor in the following
table based on the age of the employee and the difference in
the age of the employee and the age of the reversionary
annuitant at the starting date of the employee's annuity:
Employee's Age
Reversionary
Annuitant's Age 55-57 58-60 61-63 64-66 67-69 70 &
Over
30 or more years 2.18 1.84 1.55 1.29 1.08 0.91
younger
25-29 years younger 2.29 1.94 1.63 1.37 1.15 0.97
20-24 years younger 2.44 2.07 1.75 1.48 1.25 1.06
15-19 years younger 2.65 2.26 1.92 1.63 1.39 1.19
10-14 years younger 2.94 2.53 2.16 1.85 1.59 1.37
5-9 years younger 3.35 2.90 2.51 2.16 1.88 1.64
0-4 years younger 3.93 3.44 3.00 2.61 2.29 2.02
1-5 years older 4.76 4.21 3.71 3.26 2.88 2.56
6-10 years older 5.93 5.30 4.71 4.16 3.70 3.29
11-15 years older 7.58 6.83 6.11 5.40 4.82 4.32
16-20 years older 9.84 8.93 8.02 7.13 6.43 5.87
21-25 years older 12.91 11.82 10.73 9.66 8.88 8.35
26-30 years older 17.15 15.96 14.80 13.65 12.97 12.82
31 or more years 23.34 22.32 21.45 20.62 20.85 23.28
older
(Source: P.A. 90-31, eff. 6-27-97.)
(40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
Sec. 8-150.1. Minimum annuities for widows. The widow
(otherwise eligible for widow's annuity under other Sections
of this Article 8) of an employee hereinafter described, who
retires from service or dies while in the service subsequent
to the effective date of this amendatory provision, and for
which widow the amount of widow's annuity and widow's prior
service annuity combined, fixed or provided for such widow
under other provisions of this Article is less than the
amount provided in this Section, shall, from and after the
date her otherwise provided annuity would begin, in lieu of
such otherwise provided widow's and widow's prior service
annuity, be entitled to the following indicated amount of
annuity:
(a) The widow of any employee who dies while in service
on or after the date on which he attains age 60 if the death
occurs before July 1, 1990, or on or after the date on which
he attains age 55 if the death occurs on or after July 1,
1990, with at least 20 years of service, or on or after the
date on which he attains age 50 if the death occurs on or
after the effective date of this amendatory Act of 1997 with
at least 30 years of service, shall be entitled to an annuity
equal to one-half of the amount of annuity which her deceased
husband would have been entitled to receive had he withdrawn
from the service on the day immediately preceding the date of
his death, conditional upon such widow having attained the
age of 60 or more years on such date if the death occurs
before July 1, 1990, or age 55 or more if the death occurs on
or after July 1, 1990, or age 50 or more if the death occurs
on or after January 1, 1998 and the employee is age 50 or
over with at least 30 years of service or age 55 or over with
at least 25 years of service. Except as provided in
subsection (k), this widow's annuity shall not, however,
exceed the sum of $500 a month if the employee's death in
service occurs before January 23, 1987. The widow's annuity
shall not be limited to a maximum dollar amount if the
employee's death in service occurs on or after January 23,
1987.
If the employee dies in service before July 1, 1990, and
if such widow of such described employee shall not be 60 or
more years of age on such date of death, the amount provided
in the immediately preceding paragraph for a widow 60 or more
years of age, shall, in the case of such younger widow, be
reduced by 0.25% for each month that her then attained age is
less than 60 years if the employee was born before January 1,
1936 or dies in service on or after January 1, 1988, or by
0.5% for each month that her then attained age is less than
60 years if the employee was born on or after July 1, 1936
and dies in service before January 1, 1988.
If the employee dies in service on or after July 1, 1990,
and if the widow of the employee has not attained age 55 on
or before the employee's date of death, the amount otherwise
provided in this subsection (a) shall be reduced by 0.25% for
each month that her then attained age is less than 55 years;
except that if the employee dies in service on or after
January 1, 1998 at age 50 or over with at least 30 years of
service or at age 55 or over with at least 25 years of
service, there shall be no reduction due to the widow's age
if she has attained age 50 on or before the employee's date
of death, and if the widow has not attained age 50 on or
before the employee's date of death the amount otherwise
provided in this subsection (a) shall be reduced by 0.25% for
each month that her then attained age is less than 50 years.
(b) The widow of any employee who dies subsequent to the
date of his retirement on annuity, and who so retired on or
after the date on which he attained the age of 60 or more
years if retirement occurs before July 1, 1990, or on or
after the date on which he attained age 55 if retirement
occurs on or after July 1, 1990, with at least 20 years of
service, or on or after the date on which he attained age 50
if the retirement occurs on or after the effective date of
this amendatory Act of 1997 with at least 30 years of
service, shall be entitled to an annuity equal to one-half of
the amount of annuity which her deceased husband received as
of the date of his retirement on annuity, conditional upon
such widow having attained the age of 60 or more years on the
date of her husband's retirement on annuity if retirement
occurs before July 1, 1990, or age 55 or more if retirement
occurs on or after July 1, 1990, or age 50 or more if the
retirement on annuity occurs on or after January 1, 1998 and
the employee is age 50 or over with at least 30 years of
service or age 55 or over with at least 25 years of service.
Except as provided in subsection (k), this widow's annuity
shall not, however, exceed the sum of $500 a month if the
employee's death occurs before January 23, 1987. The widow's
annuity shall not be limited to a maximum dollar amount if
the employee's death occurs on or after January 23, 1987,
regardless of the date of retirement; provided that, if
retirement was before January 23, 1987, the employee or
eligible spouse repays the excess spouse refund with interest
at the effective rate from the date of refund to the date of
repayment.
If the date of the employee's retirement on annuity is
before July 1, 1990, and if such widow of such described
employee shall not have attained such age of 60 or more years
on such date of her husband's retirement on annuity, the
amount provided in the immediately preceding paragraph for a
widow 60 or more years of age on the date of her husband's
retirement on annuity, shall, in the case of such then
younger widow, be reduced by 0.25% for each month that her
then attained age was less than 60 years if the employee was
born before January 1, 1936 or withdraws from service on or
after January 1, 1988, or by 0.5% for each month that her
then attained age is less than 60 years if the employee was
born on or after January 1, 1936 and withdraws from service
before January 1, 1988.
If the date of the employee's retirement on annuity is on
or after July 1, 1990, and if the widow of the employee has
not attained age 55 by the date of the employee's retirement
on annuity, the amount otherwise provided in this subsection
(b) shall be reduced by 0.25% for each month that her then
attained age is less than 55 years; except that if the
employee retires on annuity on or after January 1, 1998 at
age 50 or over with at least 30 years of service or at age 55
or over with at least 25 years of service, there shall be no
reduction due to the widow's age if she has attained age 50
on or before the employee's date of death, and if the widow
has not attained age 50 on or before the employee's date of
death the amount otherwise provided in this subsection (b)
shall be reduced by 0.25% for each month that her then
attained age is less than 50 years.
(c) The foregoing provisions relating to minimum
annuities for widows shall not apply to the widow of any
former municipal employee receiving an annuity from the fund
on August 9, 1965 or on the effective date of this amendatory
provision, who re-enters service as a municipal employee,
unless such employee renders at least 3 years of additional
service after the date of re-entry.
(d) In computing the amount of annuity which the husband
specified in the foregoing paragraphs (a) and (b) of this
Section would have been entitled to receive, or received,
such amount shall be the annuity to which such husband would
have been, or was entitled, before reduction in the amount of
his annuity for the purposes of the voluntary optional
reversionary annuity provided for in Sec. 8-139 of this
Article, if such option was elected.
(e) (Blank).
(f) (Blank).
(g) The amendatory provisions of this amendatory Act of
1985 relating to annuity discount because of age for widows
of employees born before January 1, 1936, shall apply only to
qualifying widows of employees withdrawing or dying in
service on or after July 18, 1985.
(h) Beginning on January 1, 1999 the effective date of
this amendatory Act of 1997, the minimum amount of widow's
annuity shall be $800 $500 per month for life for the
following classes of widows, without regard to the fact that
the death of the employee occurred prior to the effective
date of this amendatory Act of 1998 1997:
(1) any widow annuitant alive and receiving a life
annuity on the effective date of this amendatory Act of
1998 1997, except a reciprocal annuity;
(2) any widow annuitant alive and receiving a term
annuity on the effective date of this amendatory Act of
1998 1997, except a reciprocal annuity;
(3) any widow annuitant alive and receiving a
reciprocal annuity on the effective date of this
amendatory Act of 1998 1997, whose employee spouse's
service in this fund was at least 5 years;
(4) the widow of an employee with at least 10 years
of service in this fund who dies after retirement, if the
retirement occurred prior to the effective date of this
amendatory Act of 1998 1997;
(5) the widow of an employee with at least 10 years
of service in this fund who dies after retirement, if
withdrawal occurs on or after the effective date of this
amendatory Act of 1998 1997;
(6) the widow of an employee who dies in service
with at least 5 years of service in this fund, if the
death in service occurs on or after the effective date of
this amendatory Act of 1998 1997.
The increases granted under items (1), (2), (3) and (4)
of this subsection (h) shall not be limited by any other
Section of this Act.
(i) The widow of an employee who retired or died in
service on or after January 1, 1985 and before July 1, 1990,
at age 55 or older, and with at least 35 years of service
credit, shall be entitled to have her widow's annuity
increased, effective January 1, 1991, to an amount equal to
50% of the retirement annuity that the deceased employee
received on the date of retirement, or would have been
eligible to receive if he had retired on the day preceding
the date of his death in service, provided that if the widow
had not attained age 60 by the date of the employee's
retirement or death in service, the amount of the annuity
shall be reduced by 0.25% for each month that her then
attained age was less than age 60 if the employee's
retirement or death in service occurred on or after January
1, 1988, or by 0.5% for each month that her attained age is
less than age 60 if the employee's retirement or death in
service occurred prior to January 1, 1988. However, in cases
where a refund of excess contributions for widow's annuity
has been paid by the Fund, the increase in benefit provided
by this subsection (i) shall be contingent upon repayment of
the refund to the Fund with interest at the effective rate
from the date of refund to the date of payment.
(j) If a deceased employee is receiving a retirement
annuity at the time of death and that death occurs on or
after June 27, the effective date of this amendatory Act of
1997, the widow may elect to receive, in lieu of any other
annuity provided under this Article, 50% of the deceased
employee's retirement annuity at the time of death reduced by
0.25% for each month that the widow's age on the date of
death is less than 55; except that if the employee dies on or
after January 1, 1998 and withdrew from service on or after
June 27, 1997 at age 50 or over with at least 30 years of
service or at age 55 or over with at least 25 years of
service, there shall be no reduction due to the widow's age
if she has attained age 50 on or before the employee's date
of death, and if the widow has not attained age 50 on or
before the employee's date of death the amount otherwise
provided in this subsection (j) shall be reduced by 0.25% for
each month that her age on the date of death is less than 50
years. However, in cases where a refund of excess
contributions for widow's annuity has been paid by the Fund,
the benefit provided by this subsection (j) is contingent
upon repayment of the refund to the Fund with interest at the
effective rate from the date of refund to the date of
payment.
(k) For widows of employees who died before January 23,
1987 after retirement on annuity or in service, the maximum
dollar amount limitation on widow's annuity shall cease to
apply, beginning with the first annuity payment after the
effective date of this amendatory Act of 1997; except that if
a refund of excess contributions for widow's annuity has been
paid by the Fund, the increase resulting from this subsection
(k) shall not begin before the refund has been repaid to the
Fund, together with interest at the effective rate from the
date of the refund to the date of repayment.
(Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
(40 ILCS 5/8-158) (from Ch. 108 1/2, par. 8-158)
Sec. 8-158. Child's annuity. A child's annuity is
payable monthly after the death of an employee parent to the
child until the child's attainment of age 18, under the
following conditions, if the child was born before the
employee attained age 65, and before he withdrew from
service:
(a) upon death resulting from injury incurred in
the performance of an act of duty;
(b) upon death in service from any cause other than
injury incurred in the performance of an act of duty, if
the employee has at least 4 years of service after the
date of his original entry into service, and at least 2
years after the date of his latest re-entry;
(c) upon death of an employee who withdraws from
service after age 55 (or after age 50 with at least 30
years of service if withdrawal is on or after June 27,
1997) and who has entered upon or is eligible for
annuity.
Payment shall be made as provided in Section 8-125.
(Source: P.A. 90-31, eff. 6-27-97.)
(40 ILCS 5/8-173) (from Ch. 108 1/2, par. 8-173)
Sec. 8-173. Financing; tax levy.
(a) Except as provided in subsection (f) of this
Section, the city council of the city shall levy a tax
annually upon all taxable property in the city at a rate that
will produce a sum which, when added to the amounts deducted
from the salaries of the employees or otherwise contributed
by them and the amounts deposited under subsection (f), will
be sufficient for the requirements of this Article, but which
when extended will produce an amount not to exceed the
greater of the following: (a) the sum obtained by the levy of
a tax of .1093% of the value, as equalized or assessed by the
Department of Revenue, of all taxable property within such
city, or (b) the sum of $12,000,000. However any city in
which a Fund has been established and in operation under this
Article for more than 3 years prior to 1970, that city shall
levy for the year 1970 a tax at a rate on the dollar of
assessed valuation of all taxable property that will produce,
when extended, an amount not to exceed 1.2 times the total
amount of contributions made by employees to the Fund for
annuity purposes in the calendar year 1968, and, for the year
1971 and 1972 such levy that will produce, when extended, an
amount not to exceed 1.3 times the total amount of
contributions made by of employees to the Fund for annuity
purposes in the calendar years 1969 and 1970, respectively;
and for the year 1973 an amount not to exceed 1.365 times
such total amount of contributions made by employees for
annuity purposes in the calendar year 1971; and for the year
1974 an amount not to exceed 1.430 times such total amount of
contributions made by employees for annuity purposes in the
calendar year 1972; and for the year 1975 an amount not to
exceed 1.495 times such total amount of contributions made by
employees for annuity purposes in the calendar year 1973; and
for the year 1976 an amount not to exceed 1.560 times such
total amount of contributions made by employees for annuity
purposes in the calendar year 1974; and for the year 1977 an
amount not to exceed 1.625 times such total amount of
contributions made by employees for annuity purposes in the
calendar year 1975; and for the year 1978 and each year
thereafter, such levy as that will produce, when extended, an
amount not to exceed 1.690 times the total amount of
contributions made by or on behalf of employees to the Fund
for annuity purposes in the calendar year 2 years prior to
the year for which the annual applicable tax is levied,
multiplied by 1.690 for the years 1978 through 1998 and by
1.250 for the year 1999 and for each year thereafter.
The tax shall be levied and collected in like manner with
the general taxes of the city, and shall be exclusive of and
in addition to the amount of tax the city is now or may
hereafter be authorized to levy for general purposes under
any laws which may limit the amount of tax which the city may
levy for general purposes. The county clerk of the county in
which the city is located, in reducing tax levies under the
provisions of any Act concerning the levy and extension of
taxes, shall not consider the tax herein provided for as a
part of the general tax levy for city purposes, and shall not
include the same within any limitation of the percent of the
assessed valuation upon which taxes are required to be
extended for such city.
Revenues derived from such tax shall be paid to the city
treasurer of the city as collected 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
city may issue tax anticipation warrants against the current
tax levy.
(b) On or before January 10, annually, the board shall
notify the city council of the requirements of this Article
that the tax herein provided shall be levied for that current
year. The board shall compute the amounts necessary to be
credited to the reserves established and maintained as herein
provided, and shall make an annual determination of the
amount of the required city contributions, and certify the
results thereof to the city council.
(c) In respect to employees of the city who are
transferred to the employment of a park district by virtue of
the "Exchange of Functions Act of 1957", the corporate
authorities of the park district shall annually levy a tax
upon all the taxable property in the park district at such
rate per cent of the value of such property, as equalized or
assessed by the Department of Revenue, as shall be
sufficient, when added to the amounts deducted from their
salaries and otherwise contributed by them to provide the
benefits to which they and their dependents and beneficiaries
are entitled under this Article. The city shall not levy a
tax hereunder in respect to such employees.
The tax so levied by the park district shall be in
addition to and exclusive of all other taxes authorized to be
levied by the park district for corporate, annuity fund, or
other purposes. The county clerk of the county in which the
park district is located, in reducing any tax levied under
the provisions of any act concerning the levy and extension
of taxes shall not consider such tax as part of the general
tax levy for park purposes, and shall not include the same in
any limitation of the per cent of the assessed valuation upon
which taxes are required to be extended for the park
district. The proceeds of the tax levied by the park
district, upon receipt by the district, shall be immediately
paid over to the city treasurer of the city for the uses and
purposes of the fund.
The various sums, to be contributed by the city and park
district and allocated for the purposes of this Article, and
any interest to be contributed by the city, shall be derived
from the revenue from the taxes authorized in this Section
said tax or otherwise as expressly provided in this Section.
If it is not possible or practicable for the city to make
contributions for age and service annuity and widow's annuity
at the same time that employee contributions are made for
such purposes, such city contributions shall be construed to
be due and payable as of the end of the fiscal year for which
the tax is levied and shall accrue thereafter with interest
at the effective rate until paid.
(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 City 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 City
Council. Any such amounts shall become a credit to the City
and will be used to reduce the amount which the City 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 municipality contribution rate
for all such employees. If this option is elected, the City
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 City and be used to reduce the
amount which the City would otherwise contribute during
succeeding years for all employees.
(f) In lieu of levying all or a portion of the tax
required under this Section in any year, the city may deposit
with the city treasurer no later than March 1 of that year
for the benefit of the fund, to be held in accordance with
this Article, an amount that, together with the taxes levied
under this Section for that year, is not less than the amount
of the city contributions for that year as certified by the
board to the city council. The deposit may be derived from
any source legally available for that purpose, including, but
not limited to, the proceeds of city borrowings. The making
of a deposit shall satisfy fully the requirements of this
Section for that year to the extent of the amounts so
deposited. Amounts deposited under this subsection may be
used by the fund for any of the purposes for which the
proceeds of the tax levied by the city under this Section may
be used, including the payment of any amount that is
otherwise required by this Article to be paid from the
proceeds of that tax.
(Source: P.A. 90-31, eff. 6-27-97; revised 12-18-97.)
(40 ILCS 5/8-230.7 new)
Sec. 8-230.7. Service rendered to Public Building
Commission.
(a) An employee or former employee may contribute to the
fund and receive credit for all periods of full-time
employment by the Public Building Commission created by the
employing city, except for those periods for which the
employee retains a right to credit in another public pension
fund or retirement system. Such service credit shall be paid
for and granted on the same basis and under the same
conditions as are applicable in the case of employees who
make payment for past service under Section 8-230, provided
that the person must also pay the corresponding employer
contributions. The contributions shall be based on the
salary actually received by the person from the Commission
for that employment.
(b) A person establishing service credit under
subsection (a) may, at the same time, reinstate service
credit that was terminated through receipt of a refund by
repaying to the Fund the amount of the refund plus interest
at the effective rate from the date of the refund to the date
of repayment.
(c) An eligible person may establish service credit
under subsection (a) and reinstate service credit under
subsection (b) without returning to active service as an
employee under this Article, but the required contributions
and repayment must be received by the Fund before the person
begins to receive a retirement annuity under this Article.
(40 ILCS 5/8-244.1) (from Ch. 108 1/2, par. 8-244.1)
Sec. 8-244.1. Payment of annuity other than direct.
(a) The board, at the written direction and request of
any annuitant, may, solely as an accommodation to such
annuitant, pay the annuity due him to a bank, savings and
loan association or any other financial institution insured
by an agency of the federal government, for deposit to his
account, or to a bank or trust company for deposit in a trust
established by him for his benefit with such bank, savings
and loan association or trust company, and such annuitant may
withdraw such direction at any time. The board may also, in
the case of any disability beneficiary or annuitant for whom
no estate guardian has been appointed and who is confined in
a publicly owned and operated mental institution, pay such
disability benefit or annuity due such person to the
superintendent or other head of such institution or hospital
for deposit to such person's trust fund account maintained
for him by such institution or hospital, if by law such trust
fund accounts are authorized or recognized.
(b) An annuitant formerly employed by the City of
Chicago may authorize the withholding of a portion of his or
her annuity for payment of dues to the labor organization
which formerly represented the annuitant when the annuitant
was an active employee; however, no withholding shall be
required under this subsection for payment to one labor
organization unless a minimum of 25 annuitants authorize such
withholding. The Board shall prescribe a form for the
authorization of withholding of dues, release of name, social
security number and address and shall provide such forms to
employees, annuitants and labor organizations upon request.
Amounts withheld by the Board under this subsection shall be
promptly paid over to the designated organizations,
indicating the names, social security numbers and addresses
of annuitants on whose behalf dues were withheld.
At the request and at the expense of the labor
organization that formerly represented the annuitant, the
City of Chicago shall coordinate mailings no more than twice
in any twelve-month period to such annuitants and the Board
shall supply current annuitant addresses to the City of
Chicago upon request. These mailings shall be limited to
informing the annuitants of their rights under this
subsection (b), the form authorizing the withholding of dues
from their annuity and information supplied by the labor
organization pertinent to the decision of whether to exercise
the rights of this subsection. To meet this obligation, the
City of Chicago shall, upon request, create and update
records of all retirees for each labor organization as far
back in time as records permit, including their names,
addresses, phone numbers and social security numbers.
(Source: P.A. 83-1362.)
(40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
Sec. 11-134. Minimum annuities.
(a) An employee whose withdrawal occurs after July 1,
1957 at age 60 or over, with 20 or more years of service, (as
service is defined or computed in Section 11-216), for whom
the age and service and prior service annuity combined is
less than the amount stated in this Section, shall, from and
after the date of withdrawal, in lieu of all annuities
otherwise provided in this Article, be entitled to receive an
annuity for life of an amount equal to 1 2/3% for each year
of service, of the highest average annual salary for any 5
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal; provided, that
in the case of any employee who withdraws on or after July 1,
1971, such employee age 60 or over with 20 or more years of
service, shall be entitled to instead receive an annuity for
life equal to 1.67% for each of the first 10 years of
service; 1.90% for each of the next 10 years of service;
2.10% for each year of service in excess of 20 but not
exceeding 30; and 2.30% for each year of service in excess of
30, 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.
An employee who withdraws after July 1, 1957 and before
January 1, 1988, with 20 or more years of service, before age
60, shall be entitled to an annuity, to begin not earlier
than age 55, if under such age at withdrawal, as computed in
the last preceding paragraph, reduced 0.25% if the employee
was born before January 1, 1936, or 0.5% if the employee was
born on or after January 1, 1936, for each full month or
fractional part thereof that his attained age when such
annuity is to begin is less than 60.
Any employee born before January 1, 1936 who withdraws
with 20 or more years of service, and any employee with 20 or
more years of service who withdraws on or after January 1,
1988, may elect to receive, in lieu of any other employee
annuity provided in this Section, an annuity for life equal
to 1.80% for each of the first 10 years of service, 2.00% for
each of the next 10 years of service, 2.20% for each year of
service in excess of 20, but not exceeding 30, and 2.40% for
each year of service in excess of 30, of the highest average
annual salary for any 4 consecutive years within the last 10
years of service immediately preceding the date of
withdrawal, to begin not earlier than upon attained age of 55
years, if under such age at withdrawal, reduced 0.25% for
each full month or fractional part thereof that his attained
age when annuity is to begin is less than 60; except that an
employee retiring on or after January 1, 1988, at age 55 or
over but less than age 60, having at least 35 years of
service, or an employee retiring on or after July 1, 1990, at
age 55 or over but less than age 60, having at least 30 years
of service, or an employee retiring on or after the effective
date of this amendatory Act of 1997, at age 55 or over but
less than age 60, having at least 25 years of service, shall
not be subject to the reduction in retirement annuity because
of retirement below age 60.
However, in the case of an employee who retired on or
after January 1, 1985 but before January 1, 1988, at age 55
or older and with at least 35 years of service, and who was
subject under this subsection (a) to the reduction in
retirement annuity because of retirement below age 60, that
reduction shall cease to be effective January 1, 1991, and
the retirement annuity shall be recalculated accordingly.
Any employee who withdraws on or after July 1, 1990, with
20 or more years of service, may elect to receive, in lieu of
any other employee annuity provided in this Section, an
annuity for life equal to 2.20% for each year of service of
the highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal, to begin not earlier than upon attained
age of 55 years, if under such age at withdrawal, reduced
0.25% for each full month or fractional part thereof that his
attained age when annuity is to begin is less than 60; except
that an employee retiring at age 55 or over but less than age
60, having at least 30 years of service, shall not be subject
to the reduction in retirement annuity because of retirement
below age 60.
Any employee who withdraws on or after the effective date
of this amendatory Act of 1997 with 20 or more years of
service may elect to receive, in lieu of any other employee
annuity provided in this Section, an annuity for life equal
to 2.20%, for each year of service, of the highest average
annual salary for any 4 consecutive years within the last 10
years of service immediately preceding the date of
withdrawal, to begin not earlier than upon attainment of age
55 (age 50 if the employee has at least 30 years of service),
reduced 0.25% for each full month or remaining fractional
part thereof that the employee's attained age when annuity is
to begin is less than 60; except that an employee retiring at
age 50 or over with at least 30 years of service or at age 55
or over with at least 25 years of service shall not be
subject to the reduction in retirement annuity because of
retirement below age 60.
The maximum annuity payable under this paragraph (a) of
this Section shall not exceed 70% of highest average annual
salary in the case of an employee who withdraws prior to July
1, 1971, and 75% if withdrawal takes place on or after July
1, 1971. For the purpose of the minimum annuity provided in
said paragraphs $1,500 shall be considered the minimum annual
salary for any year; and the maximum annual salary to be
considered for the computation of such annuity shall be
$4,800 for any year prior to 1953, $6,000 for the years 1953
to 1956, inclusive, and the actual annual salary, as salary
is defined in this Article, for any year thereafter.
(b) For an employee receiving disability benefit, his
salary for annuity purposes under this Section shall, for all
periods of disability benefit subsequent to the year 1956, be
the amount on which his disability benefit was based.
(c) An employee with 20 or more years of service, whose
entire disability benefit credit period expires prior to
attainment of age 55 while still disabled for service, shall
be entitled upon withdrawal to the larger of (1) the minimum
annuity provided above assuming that he is then age 55, and
reducing such annuity to its actuarial equivalent at his
attained age on such date, or (2) the annuity provided from
his age and service and prior service annuity credits.
(d) The minimum annuity provisions as aforesaid shall
not apply to any former employee receiving an annuity from
the fund, and who re-enters service as an employee, unless he
renders at least 3 years of additional service after the date
of re-entry.
(e) An employee in service on July 1, 1947, or who
became a contributor after July 1, 1947 and prior to July 1,
1950, or who shall become a contributor to the fund after
July 1, 1950 prior to attainment of age 70, who withdraws
after age 65 with less than 20 years of service, for whom the
annuity has been fixed under the foregoing Sections of this
Article shall, in lieu of the annuity so fixed, receive an
annuity as follows:
Such amount as he could have received had the accumulated
amounts for annuity been improved with interest at the
effective rate to the date of his withdrawal, or to
attainment of age 70, whichever is earlier, and had the city
contributed to such earlier date for age and service annuity
the amount that would have been contributed had he been under
age 65, after the date his annuity was fixed in accordance
with this Article, and assuming his annuity were computed
from such accumulations as of his age on such earlier date.
The annuity so computed shall not exceed the annuity which
would be payable under the other provisions of this Section
if the employee was credited with 20 years of service and
would qualify for annuity thereunder.
(f) In lieu of the annuity provided in this or in any
other Section of this Article, an employee having attained
age 65 with at least 15 years of service who withdraws from
service on or after July 1, 1971 and whose annuity computed
under other provisions of this Article is less than the
amount provided under this paragraph shall be entitled to
receive a minimum annual annuity for life equal to 1% of the
highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding
retirement for each year of his service plus the sum of $25
for each year of service. Such annual annuity shall not
exceed the maximum percentages stated under paragraph (a) of
this Section of such highest average annual salary.
(f-1) Instead of any other retirement annuity provided
in this Article, an employee who has at least 10 years of
service and withdraws from service on or after January 1,
1999 may elect to receive a retirement annuity for life,
beginning no earlier than upon attainment of age 60, equal to
2.2% of final average salary for each year of service,
subject to a maximum of 75% of final average salary. For the
purpose of calculating this annuity, "final average salary"
means the highest average annual salary for any 4 consecutive
years in the last 10 years of service.
(g) Any annuity payable under the preceding subsections
of this Section 11-134 shall be paid in equal monthly
installments.
(h) The amendatory provisions of part (a) and (f) of
this Section shall be effective July 1, 1971 and apply in the
case of every qualifying employee withdrawing on or after
July 1, 1971.
(i) The amendatory provisions of this amendatory Act of
1985 relating to the discount of annuity because of
retirement prior to attainment of age 60 and increasing the
retirement formula for those born before January 1, 1936,
shall apply only to qualifying employees withdrawing on or
after August 16, 1985.
(j) Beginning on January 1, 1999 the effective date of
this amendatory Act of 1997, the minimum amount of employee's
annuity shall be $850 $550 per month for life for the
following classes of employees, without regard to the fact
that withdrawal occurred prior to the effective date of this
amendatory Act of 1998 1997:
(1) any employee annuitant alive and receiving a
life annuity on the effective date of this amendatory Act
of 1998 1997, except a reciprocal annuity;
(2) any employee annuitant alive and receiving a
term annuity on the effective date of this amendatory Act
of 1998 1997, except a reciprocal annuity;
(3) any employee annuitant alive and receiving a
reciprocal annuity on the effective date of this
amendatory Act of 1998 1997, whose service in this fund
is at least 5 years;
(4) any employee annuitant withdrawing after age 60
on or after the effective date of this amendatory Act of
1998 1997, with at least 10 years of service in this
fund.
The increases granted under items (1), (2) and (3) of
this subsection (j) shall not be limited by any other Section
of this Act.
(Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
(40 ILCS 5/11-134.1) (from Ch. 108 1/2, par. 11-134.1)
Sec. 11-134.1. Automatic increase in annuity.
(a) An employee who retired or retires from service
after December 31, 1963, and before January 1, 1987, having
attained age 60 or more, shall, in the month of January of
the year following the year in which the first anniversary of
retirement occurs, have the amount of 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
January, 1984, such increases shall be at the rate of 3%.
Beginning in January of 1999, such increases shall be at the
rate of 3% of the currently payable monthly annuity,
including any increases previously granted under this
Article. An Such employee who retires on annuity after
December 31, 1963 and before January 1, 1987, but prior to
age 60, 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 from service on or after January
1, 1987 shall, upon the first annuity payment date following
the first anniversary of the date of retirement, or upon the
first annuity payment date following attainment of age 60,
whichever occurs later, have his then fixed and payable
monthly annuity increased by 3%, and such annuity shall be
increased by an additional 3% of the original fixed annuity
on the same date each year thereafter. Beginning in January
of 1999, such increases shall be at the rate of 3% of the
currently payable monthly annuity, including any increases
previously granted under this Article.
(b) The foregoing provision is not applicable to an
employee retiring and receiving a term annuity, as defined in
this Article, nor to any otherwise qualified employee who
retires before he shall have made employee contributions (at
the 1/2 of 1% rate as hereinafter provided) for the purposes
of 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 1/2 of 1%
contributions, based on his final salary, as will bring such
1/2 of 1% contributions, computed without interest, to the
equivalent of or completion of one year's contributions.
Beginning with the month of January, 1964, 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 made for annuity purposes.
Each such additional employee contribution shall be
credited to an account in the prior service annuity reserve,
to be used, together with city contributions, to defray the
cost of the specified annuity increments. Any balance as of
the beginning of each calendar year existing in such account
shall be credited with interest at the rate of 3% per annum.
Such employee contributions shall not be subject to
refund, except to an employee who resigns or is discharged
and applies for refund under this Article, and also in cases
where a term annuity becomes payable.
In such cases the employee contributions shall be
refunded him, without interest, and charged to the
aforementioned account in the prior service annuity reserve.
(Source: P.A. 84-1472.)
(40 ILCS 5/11-134.2) (from Ch. 108 1/2, par. 11-134.2)
Sec. 11-134.2. Reversionary annuity.
(a) An employee, prior to retirement on annuity, may
elect to take a lesser amount of annuity and provide, with
the actuarial value of the amount by which his annuity is
reduced, a reversionary annuity for a wife, husband, parent,
child, brother or sister. The option shall be exercised by
filing a written designation with the board prior to
retirement, and may be revoked by the employee at any time
before retirement. The death of the employee prior to his
retirement shall automatically void the option.
(b) The death of the designated reversionary annuitant
prior to the employee's retirement shall automatically void
the option. If the reversionary annuitant dies after the
employee's retirement, and before the death of the employee
annuitant, the reduced annuity being paid to the retired
employee annuitant shall be increased to the amount of
annuity before reduction for the reversionary annuity and no
reversionary annuity shall be payable.
The option is subject to the further condition that no
reversionary annuity shall be paid to a parent, child,
brother, or sister if the employee dies before the expiration
of 365 730 days from the date his written designation was
filed with the board, even though he has retired and is
receiving a reduced annuity.
(c) The employee exercising this option shall not reduce
his retirement annuity by more than $400 $200 per month, or
elect to provide a reversionary annuity of less than $50 per
month. No option shall be permitted if the reversionary
annuity for a widow, when added to the widow's annuity
payable under this Article, exceeds 100% 80% of the reduced
annuity payable to the employee.
(d) A reversionary annuity shall begin on the day
following the death of the annuitant and shall be paid as
provided in Section 11-124.
(e) The increases in annuity provided in Section
11-134.1 of this Article shall, as to an employee so electing
a reduced annuity, relate to the amount of the original
annuity, and such amount shall constitute the annuity on
which such increases shall be based.
(f) For annuities elected after June 30, 1983, the
amount of the monthly reversionary annuity shall be
determined by multiplying the amount of the monthly reduction
in the employee's annuity by the factor in the following
table based on the age of the employee and the difference in
the age of the employee and the age of the reversionary
annuitant at the starting date of the employee's annuity:
Employee's Age
Reversionary
Annuitant's Age 55-57 58-60 61-63 64-66 67-69 70 &
Over
30 or more years 2.18 1.84 1.55 1.29 1.08 0.91
younger
25-29 years younger 2.29 1.94 1.63 1.37 1.15 0.97
20-24 years younger 2.44 2.07 1.75 1.48 1.25 1.06
15-19 years younger 2.65 2.26 1.92 1.63 1.39 1.19
10-14 years younger 2.94 2.53 2.16 1.85 1.59 1.37
5-9 years younger 3.35 2.90 2.51 2.16 1.88 1.64
0-4 years younger 3.93 3.44 3.00 2.61 2.29 2.02
1-5 years older 4.76 4.21 3.71 3.26 2.88 2.56
6-10 years older 5.93 5.30 4.71 4.16 3.70 3.29
11-15 years older 7.58 6.83 6.11 5.40 4.82 4.32
16-20 years older 9.84 8.93 8.02 7.13 6.43 5.87
21-25 years older 12.91 11.82 10.73 9.66 8.88 8.35
26-30 years older 17.15 15.96 14.80 13.65 12.97 12.82
31 or more years 23.34 22.32 21.45 20.62 20.85 23.28
older
(Source: P.A. 90-31, eff. 6-27-97.)
(40 ILCS 5/11-134.3) (from Ch. 108 1/2, par. 11-134.3)
Sec. 11-134.3. Automatic increases in annuity for certain
heretofore retired participants. A retired employee who (a)
is receiving annuity based on a service credit of 20 or more
years regardless of age at retirement or based on a service
credit of 15 or more years with retirement at age 55 or over,
and (b) does not qualify for the automatic increases in
annuity provided for in Section 11-134.1 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 amount of final monthly salary times the number of
full years of service on which the annuity was based in those
cases where the annuity was computed on the money purchase
formula, and in those cases in which the annuity was computed
under the minimum annuity formula provisions of this Article
a sum equal to 1% of the average monthly salary on which the
annuity was based times such number of full years of service,
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 January, 1984,
such increases shall be at the rate of 3%. Beginning in
January of 1999, such increases shall be at the rate of 3% of
the currently payable monthly annuity, including any
increases previously granted under this Article.
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 January, 1984,
such increases shall be at the rate of 3%. Beginning in
January of 1999, such increases shall be at the rate of 3% of
the currently payable monthly annuity, including any
increases previously granted under this Article.
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. 11-210. 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. 83-802.)
(40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
Sec. 11-145.1. Minimum annuities for widows. The widow
otherwise eligible for widow's annuity under other Sections
of this Article 11, of an employee hereinafter described, who
retires from service or dies while in the service subsequent
to the effective date of this amendatory provision, and for
which widow the amount of widow's annuity and widow's prior
service annuity combined, fixed or provided for such widow
under other provisions of said Article 11 is less than the
amount hereinafter provided in this section, shall, from and
after the date her otherwise provided annuity would begin, in
lieu of such otherwise provided widow's and widow's prior
service annuity, be entitled to the following indicated
amount of annuity:
(a) The widow of any employee who dies while in service
on or after the date on which he attains age 60 if the death
occurs before July 1, 1990, or on or after the date on which
he attains age 55 if the death occurs on or after July 1,
1990, with at least 20 years of service, or on or after the
date on which he attains age 50 if the death occurs on or
after the effective date of this amendatory Act of 1997 with
at least 30 years of service, shall be entitled to an annuity
equal to one-half of the amount of annuity which her deceased
husband would have been entitled to receive had he withdrawn
from the service on the day immediately preceding the date of
his death, conditional upon such widow having attained age 60
on or before such date if the death occurs before July 1,
1990, or age 55 if the death occurs on or after July 1, 1990,
or age 50 if the death occurs on or after January 1, 1998 and
the employee is age 50 or over with at least 30 years of
service or age 55 or over with at least 25 years of service.
Except as provided in subsection (j), the widow's annuity
shall not, however, exceed the sum of $500 a month if the
employee's death in service occurs before January 23, 1987.
The widow's annuity shall not be limited to a maximum dollar
amount if the employee's death in service occurs on or after
January 23, 1987.
If the employee dies in service before July 1, 1990, and
if such widow of such described employee shall not be 60 or
more years of age on such date of death, the amount provided
in the immediately preceding paragraph for a widow 60 or more
years of age, shall, in the case of such younger widow, be
reduced by 0.25% for each month that her then attained age is
less than 60 years if the employee was born before January 1,
1936, or dies in service on or after January 1, 1988, or 0.5%
for each month that her then attained age is less than 60
years if the employee was born on or after January 1, 1936
and dies in service before January 1, 1988.
If the employee dies in service on or after July 1, 1990,
and if the widow of the employee has not attained age 55 on
or before the employee's date of death, the amount otherwise
provided in this subsection (a) shall be reduced by 0.25% for
each month that her then attained age is less than 55 years;
except that if the employee dies in service on or after
January 1, 1998 at age 50 or over with at least 30 years of
service or at age 55 or over with at least 25 years of
service, there shall be no reduction due to the widow's age
if she has attained age 50 on or before the employee's date
of death, and if the widow has not attained age 50 on or
before the employee's date of death the amount otherwise
provided in this subsection (a) shall be reduced by 0.25% for
each month that her then attained age is less than 50 years.
(b) The widow of any employee who dies subsequent to the
date of his retirement on annuity, and who so retired on or
after the date on which he attained age 60 if retirement
occurs before July 1, 1990, or on or after the date on which
he attained age 55 if retirement occurs on or after July 1,
1990, with at least 20 years of service, or on or after the
date on which he attained age 50 if the retirement occurs on
or after the effective date of this amendatory Act of 1997
with at least 30 years of service, shall be entitled to an
annuity equal to one-half of the amount of annuity which her
deceased husband received as of the date of his retirement on
annuity, conditional upon such widow having attained age 60
on or before the date of her husband's retirement on annuity
if retirement occurs before July 1, 1990, or age 55 if
retirement occurs on or after July 1, 1990, or age 50 if the
retirement on annuity occurs on or after January 1, 1998 and
the employee is age 50 or over with at least 30 years of
service or age 55 or over with at least 25 years of service.
Except as provided in subsection (j), this widow's annuity
shall not, however, exceed the sum of $500 a month if the
employee's death occurs before January 23, 1987. The widow's
annuity shall not be limited to a maximum dollar amount if
the employee's death occurs on or after January 23, 1987,
regardless of the date of retirement; provided that, if
retirement was before January 23, 1987, the employee or
eligible spouse repays the excess spouse refund with interest
at the effective rate from the date of refund to the date of
repayment.
If the date of the employee's retirement on annuity is
before July 1, 1990, and if such widow of such described
employee shall not have attained such age of 60 or more years
on such date of her husband's retirement on annuity, the
amount provided in the immediately preceding paragraph for a
widow 60 or more years of age on the date of her husband's
retirement on annuity, shall, in the case of such then
younger widow, be reduced by 0.25% for each month that her
then attained age was less than 60 years if the employee was
born before January 1, 1936, or withdraws from service on or
after January 1, 1988, or 0.5% for each month that her then
attained age was less than 60 years if the employee was born
on or after January 1, 1936 and withdraws from service before
January 1, 1988.
If the date of the employee's retirement on annuity is on
or after July 1, 1990, and if the widow of the employee has
not attained age 55 by the date of the employee's retirement
on annuity, the amount otherwise provided in this subsection
(b) shall be reduced by 0.25% for each month that her then
attained age is less than 55 years; except that if the
employee retires on annuity on or after January 1, 1998 at
age 50 or over with at least 30 years of service or at age 55
or over with at least 25 years of service, there shall be no
reduction due to the widow's age if she has attained age 50
on or before the employee's date of death, and if the widow
has not attained age 50 on or before the employee's date of
death the amount otherwise provided in this subsection (b)
shall be reduced by 0.25% for each month that her then
attained age is less than 50 years.
(c) The foregoing provisions relating to minimum
annuities for widows shall not apply to the widow of any
former employee receiving an annuity from the fund on August
2, 1965 or on the effective date of this amendatory
provision, who re-enters service as a former employee, unless
such employee renders at least 3 years of additional service
after the date of re-entry.
(d) (Blank).
(e) (Blank).
(f) The amendments to this Section by this amendatory
Act of 1985, relating to changing the discount because of age
from 1/2 of 1% to 0.25% per month for widows of employees
born before January 1, 1936, shall apply only to qualifying
widows whose husbands die while in the service on or after
August 16, 1985 or withdraw and enter on annuity on or after
August 16, 1985.
(g) Beginning on January 1, 1999 the effective date of
this amendatory Act of 1997, the minimum amount of widow's
annuity shall be $800 $500 per month for life for the
following classes of widows, without regard to the fact that
the death of the employee occurred prior to the effective
date of this amendatory Act of 1998 1997:
(1) any widow annuitant alive and receiving a term
annuity on the effective date of this amendatory Act of
1998 1997, except a reciprocal annuity;
(2) any widow annuitant alive and receiving a life
annuity on the effective date of this amendatory Act of
1998 1997, except a reciprocal annuity;
(3) any widow annuitant alive and receiving a
reciprocal annuity on the effective date of this
amendatory Act of 1998 1997, whose employee spouse's
service in this fund was at least 5 years;
(4) the widow of an employee with at least 10 years
of service in this fund who dies after retirement, if the
retirement occurred prior to the effective date of this
amendatory Act of 1998 1997;
(5) the widow of an employee with at least 10 years
of service in this fund who dies after retirement, if
withdrawal occurs on or after the effective date of this
amendatory Act of 1998 1997;
(6) the widow of an employee who dies in service
with at least 5 years of service in this fund, if the
death in service occurs on or after the effective date of
this amendatory Act of 1998 1997.
The increases granted under items (1), (2), (3) and (4)
of this subsection (g) shall not be limited by any other
Section of this Act.
(h) The widow of an employee who retired or died in
service on or after January 1, 1985 and before July 1, 1990,
at age 55 or older, and with at least 35 years of service
credit, shall be entitled to have her widow's annuity
increased, effective January 1, 1991, to an amount equal to
50% of the retirement annuity that the deceased employee
received on the date of retirement, or would have been
eligible to receive if he had retired on the day preceding
the date of his death in service, provided that if the widow
had not attained age 60 by the date of the employee's
retirement or death in service, the amount of the annuity
shall be reduced by 0.25% for each month that her then
attained age was less than age 60 if the employee's
retirement or death in service occurred on or after January
1, 1988, or by 0.5% for each month that her attained age is
less than age 60 if the employee's retirement or death in
service occurred prior to January 1, 1988. However, in cases
where a refund of excess contributions for widow's annuity
has been paid by the Fund, the increase in benefit provided
by this subsection (h) shall be contingent upon repayment of
the refund to the Fund with interest at the effective rate
from the date of refund to the date of payment.
(i) If a deceased employee is receiving a retirement
annuity at the time of death and that death occurs on or
after June 27, the effective date of this amendatory Act of
1997, the widow may elect to receive, in lieu of any other
annuity provided under this Article, 50% of the deceased
employee's retirement annuity at the time of death reduced by
0.25% for each month that the widow's age on the date of
death is less than 55; except that if the employee dies on or
after January 1, 1998 and withdrew from service on or after
June 27, 1997 at age 50 or over with at least 30 years of
service or at age 55 or over with at least 25 years of
service, there shall be no reduction due to the widow's age
if she has attained age 50 on or before the employee's date
of death, and if the widow has not attained age 50 on or
before the employee's date of death the amount otherwise
provided in this subsection (i) shall be reduced by 0.25% for
each month that her age on the date of death is less than 50
years. However, in cases where a refund of excess
contributions for widow's annuity has been paid by the Fund,
the benefit provided by this subsection (i) is contingent
upon repayment of the refund to the Fund with interest at the
effective rate from the date of refund to the date of
payment.
(j) For widows of employees who died before January 23,
1987 after retirement on annuity or in service, the maximum
dollar amount limitation on widow's annuity shall cease to
apply, beginning with the first annuity payment after the
effective date of this amendatory Act of 1997; except that if
a refund of excess contributions for widow's annuity has been
paid by the Fund, the increase resulting from this subsection
(j) shall not begin before the refund has been repaid to the
Fund, together with interest at the effective rate from the
date of the refund to the date of repayment.
(Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
(40 ILCS 5/11-153) (from Ch. 108 1/2, par. 11-153)
Sec. 11-153. Child's annuity.
(a) A "Child's Annuity" shall be payable monthly after
the death of an employee parent to an unmarried child until
the child's attainment of age 18 or marriage, whichever event
shall first occur, under the following conditions, if the
child was born or in esse before the employee attained age
65, and before he withdrew from service:
(1) upon death resulting from injury incurred in
the performance of an act of duty;
(2) upon death in service from any cause other than
injury incurred in the performance of duty, if the
employee has at least 4 years of service after the date
of his original entry into service, and at least 2 years
after the date of his latest re-entry;
(3) upon death of an employee who withdraws from
service after age 55 (or after age 50 with at least 30
years of service if withdrawal is on or after June 27,
1997) and who has entered upon or is eligible for
annuity.
Payment shall be made as provided in Section 11-124.
(b) After July 24, 1967, an adopted child shall be
entitled to the same child's annuity benefits provided for
natural children in this Article, if:
(1) the child was legally adopted by the employee
at least one year prior to the death of the employee; and
(2) the child was adopted before the employee
attained age 55.
(Source: P.A. 90-31, eff. 6-27-97.)
(40 ILCS 5/11-169) (from Ch. 108 1/2, par. 11-169)
Sec. 11-169. Financing; tax levy.
(a) Except as provided in subsection (f) of this
Section, the city council of the city shall levy a tax
annually upon all taxable property in the city 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 and the amounts deposited under
subsection (f), will be sufficient for the requirements of
this Article. For the years prior to the year 1950 the tax
rate shall be as provided for under "The 1935 Act".
Beginning with the year 1950 to and including the year 1969
such tax shall be not more than .036% annually of the value,
as equalized or assessed by the Department of Revenue, of all
taxable property within such city. Beginning with the year
1970 and each year thereafter the city 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 such city that will produce, when extended,
not to exceed an amount equal to the total amount of
contributions by the employees to the fund made in the
calendar year 2 years prior to the year for which the annual
applicable tax is levied, multiplied by 1.1 for the years
1970, 1971 and 1972; 1.145 for the year 1973; 1.19 for the
year 1974; 1.235 for the year 1975; 1.280 for the year 1976;
1.325 for the year 1977; and 1.370 for the years 1978 through
1998; and 1.000 for the year 1999 1978 and for each year
thereafter.
The tax shall be levied and collected in like manner with
the general taxes of the city, and shall be exclusive of and
in addition to the amount of tax the city is now or may
hereafter be authorized to levy for general purposes under
any laws which may limit the amount of tax which the city may
levy for general purposes. The county clerk of the county in
which the city is located, in reducing tax levies under the
provisions of any Act concerning the levy and extension of
taxes, shall not consider the tax herein provided for as a
part of the general tax levy for city purposes, and shall not
include the same within any limitation of the per cent of the
assessed valuation upon which taxes are required to be
extended for such city.
Revenues derived from such tax shall be paid to the city
treasurer of the city as collected 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
city may issue tax anticipation warrants against the current
tax levy.
(b) On or before January 10, annually, the board shall
notify the city council of the requirement of this Article
that the tax herein provided shall be levied for that current
year. The board shall compute the amounts necessary for the
purposes of this fund to be credited to the reserves
established and maintained as herein provided, and shall make
an annual determination of the amount of the required city
contributions; and certify the results thereof to the city
council.
(c) In respect to employees of the city who are
transferred to the employment of a park district by virtue of
"Exchange of Functions Act of 1957" the corporate authorities
of the park district shall annually levy a tax upon all the
taxable property in the park district at such rate per cent
of the value of such property, as equalized or assessed by
the Department of Revenue, as shall be sufficient, when added
to the amounts deducted from their salaries and otherwise
contributed by them, to provide the benefits to which they
and their dependents and beneficiaries are entitled under
this Article. The city shall not levy a tax hereunder in
respect to such employees.
The tax so levied by the park district shall be in
addition to and exclusive of all other taxes authorized to be
levied by the park district for corporate, annuity fund, or
other purposes. The county clerk of the county in which the
park district is located, in reducing any tax levied under
the provisions of any Act concerning the levy and extension
of taxes shall not consider such tax as part of the general
tax levy for park purposes, and shall not include the same in
any limitation of the per cent of the assessed valuation upon
which taxes are required to be extended for the park
district. The proceeds of the tax levied by the park
district, upon receipt by the district, shall be immediately
paid over to the city treasurer of the city for the uses and
purposes of the fund.
The various sums to be contributed by the city and
allocated for the purposes of this Article, and any interest
to be contributed by the city, shall be taken from the
revenue derived from the taxes authorized in this Section,
tax and no money of such city derived from any source other
than the levy and collection of those taxes the tax or the
sale of tax anticipation warrants in accordance with the
provisions of this Article shall be used to provide revenue
for this Article, except as expressly provided in this
Section.
If it is not possible for the city to make contributions
for age and service annuity and widow's annuity concurrently
with the employee's contributions made for such purposes,
such city shall make such contributions as soon as possible
and practicable thereafter with interest thereon at the
effective rate to the time they 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 City 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 City
Council. Any such amounts shall become a credit to the City
and will be used to reduce the amount which the City 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 municipality contribution rate
for all such employees. If this option is elected, the City
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 City and be used to reduce the
amount which the City would otherwise contribute during
succeeding years for all employees.
(f) In lieu of levying all or a portion of the tax
required under this Section in any year, the city may deposit
with the city treasurer no later than March 1 of that year
for the benefit of the fund, to be held in accordance with
this Article, an amount that, together with the taxes levied
under this Section for that year, is not less than the amount
of the city contributions for that year as certified by the
board to the city council. The deposit may be derived from
any source legally available for that purpose, including, but
not limited to, the proceeds of city borrowings. The making
of a deposit shall satisfy fully the requirements of this
Section for that year to the extent of the amounts so
deposited. Amounts deposited under this subsection may be
used by the fund for any of the purposes for which the
proceeds of the tax levied by the city under this Section may
be used, including the payment of any amount that is
otherwise required by this Article to be paid from the
proceeds of that tax.
(Source: P.A. 90-31, eff. 6-27-97.)
(40 ILCS 5/11-181) (from Ch. 108 1/2, par. 11-181)
Sec. 11-181. Board created. A board of 8 5 members shall
constitute the a board of trustees authorized to carry out
the provisions of this Article. The board shall be known as
the Retirement Board of the Laborers' and Retirement Board
Employees' Annuity and Benefit Fund of the city. The board
shall consist of 5 3 persons appointed and 2 employees and
one annuitant elected in the manner hereinafter prescribed.
The 3 appointed members of the board shall be appointed
as follows:
One member shall be appointed by the comptroller of the
such city, who may be himself or anyone chosen from among
employees of the city who are versed in the affairs of the
comptroller's office; one member shall be appointed by the
City Treasurer of the such city, who may be himself or a
person chosen from among employees of the city who are versed
in the affairs of the City Treasurer's office; one member
shall be an employee of the city appointed by the president
of the local labor organization representing a majority of
the employees participating in the Fund; and 2 members shall
be one person appointed by the civil service commission or
the Department of Personnel of the such city from among
employees of the such city who are versed in the affairs of
the civil service commission's office or the Department of
Personnel.
The member appointed by the comptroller shall hold office
for a term ending on December 1st of the first year following
the year of appointment. The member appointed by the City
Treasurer shall hold office for a term ending on December 1st
of the second year following the year of appointment. The
member appointed by the civil service commission shall hold
office for a term ending on the first day in the month of
December of the third year following the year of appointment.
The additional member appointed by the civil service
commission under this amendatory Act of 1998 shall hold
office for an initial term ending on December 1, 2000, and
the member appointed by the labor organization president
shall hold office for an initial term ending on December 1,
2001. Thereafter each appointive member shall be appointed
by the officer or body that appointed his predecessor, for a
term of 3 years.
The 2 employee members of the board shall be elected as
follows:
Within 30 days from and after the appointive members have
been appointed and have qualified, the appointive members
shall arrange for and hold an election.
One employee shall be elected for a term ending on
December 1st of the first year next following the effective
date; one for a term ending on December 1st of the following
year.
The initial annuitant member shall be appointed by the
other members of the board for an initial term ending on
December 1, 1999. Thereafter, the annuitant member shall be
elected for a 2-year term ending on December 1st of the next
odd-numbered year.
The members of the retirement board of a laborers' and
retirement board employees' annuity and benefit fund holding
office in a city at the time this Article becomes effective,
including elective and appointive members, shall continue in
office until the expiration of their terms and until their
respective successors are elected or appointed and have
qualified.
(Source: P.A. 83-499.)
(40 ILCS 5/11-182) (from Ch. 108 1/2, par. 11-182)
Sec. 11-182. Board elections; qualification; oath.
(a) In each year, the board shall conduct a regular
election, under rules adopted by it, at least 30 days prior
to the expiration of the term of the employee member whose
term next expires, for the election of a successor for a term
of 2 years. Each employee member and his or her successor
shall be an employee who holds a position by certification
and appointment as a result of competitive civil service
examination as distinguished from temporary appointment, or
so holds a position which is not exempt from the classified
service or the personnel ordinance of a city that has adopted
a career service ordinance, for a period of not less than 5
years prior to date of election. At any such election,
including the initial election and special elections to fill
vacancies in such office all persons who are employees at the
time such election is held, shall have a right to vote. The
ballot shall be of secret character.
(b) In each odd-numbered year, the board shall conduct a
regular election, under rules adopted by it, at least 30 days
prior to the expiration of the term of the annuitant member,
for the election of a successor for a term of 2 years. Each
annuitant member and his or her successor shall be a former
employee receiving a retirement (age and service or prior
service) annuity from the Fund. At any such election, all
persons who are receiving a retirement (age and service or
prior service) annuity from the Fund at the time the election
is held have a right to vote. The ballot shall be of secret
character.
(c) Any appointive or elective member of the board shall
hold office until his or her successor is elected and
qualified.
Any person elected or appointed as a member of the board
shall qualify for the office by taking an oath of office to
be administered by the city clerk or any person designated by
the city clerk him. A copy thereof shall be kept in the
office of the city clerk.
Any appointment shall be in writing and the written
instrument shall be filed with the oath.
(Source: P.A. 83-499.)
(40 ILCS 5/11-183) (from Ch. 108 1/2, par. 11-183)
Sec. 11-183. Board vacancy. A vacancy in the membership
of the board shall be filled as follows:
If the vacancy is that of an appointive member, the
person or body who appointed the member him shall appoint a
person to serve for the unexpired term. If the vacancy is
that of an elective member, office the remaining members of
the board shall appoint a successor, who shall be an employee
or annuitant (as the case may be) who is qualified to hold
the position, to from among the employees who hold or who is
on a leave of absence from a position to which he was
appointed by virtue of certification and appointment as the
result of competitive civil service examination, who shall
serve during the remainder of the unexpired term.
Any appointive or elective member, who leaves the service
of the city, other than the annuitant member, shall
automatically cease to be a member of the board. If the
annuitant member ceases to be an annuitant of the Fund, he or
she shall cease to be a member of the board and the position
shall be deemed to have become vacant.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/12-133.1) (from Ch. 108 1/2, par. 12-133.1)
Sec. 12-133.1. Annual increase in basic retirement
annuity.
(a) Any employee upon withdrawal from service on or
after July 1, 1965, and retiring on a retirement annuity,
shall be entitled to an annual increase in his basic
retirement annuity as defined herein while he is in receipt
of such annuity.
(a) The term "basic retirement annuity" shall mean the
retirement annuity of the amount fixed and payable at date of
retirement of the employee.
(b) The annual increase in annuity shall be 1 1/2% of
the basic retirement annuity. The increase shall first occur
in the month of January or the month of July, whichever first
occurs next following or coincidental with the first
anniversary of retirement. Effective January 1, 1972, the
annual rate of increase in annuity thereafter shall be 2% of
the basic retirement annuity, provided that beginning as of
January 1, 1976, the annual rate of increase shall be 3% of
the basic retirement annuity.
(c) For an employee who retires with less than 30 years
of service, the An increase in the basic retirement annuity
shall begin in any case not earlier than in the month of
January or the month of July, whichever occurs first,
following or coincidental with the employee's attainment of
age 60.
For an employee who retires with at least 30 years of
service, the annual increase under this Section shall begin
in the month of January or the month of July, whichever first
occurs next following or coincidental with the later of (1)
the first anniversary of retirement or (2) July 1, 1998,
without regard to the attainment of age 60 and without regard
to whether or not the employee was in service on or after the
effective date of this amendatory Act of 1998.
(d) The increase in the basic retirement annuity shall
not be applicable unless the employee otherwise qualified has
made contributions to the fund as provided herein for an
equivalent period of one full year. If such contributions
were not made, the employee may make the required payment to
the fund at the time of retirement, in a single sum, without
interest.
(e) The additional contributions by an employee towards
the annual increase in basic retirement annuity shall not be
refundable, except to an employee who withdraws and applies
for a refund under this Article, or dies while in service,
and also in cases where a temporary annuity becomes payable.
In such cases his contributions shall be refunded without
interest.
(Source: P.A. 86-272.)
(40 ILCS 5/12-133.5 new)
Sec. 12-133.5. Early retirement incentives.
(a) To be eligible for the benefits provided in this
Section, a person must:
(1) have been, on July 1, 1998, an employee (i)
contributing to the Fund in active payroll status in a
position of employment under this Article, or (ii)
receiving duty or ordinary disability benefits under
Section 12-140, 12-142, or 12-143;
(2) not have begun to receive a retirement annuity
under this Article before August 31, 1998;
(3) file with the Board, within 90 days after the
effective date of this Section, a written election
requesting the benefits provided in this Section;
(4) withdraw from service on or after August 31,
1998 and no later than December 31, 1998;
(5) have attained age 50 on or before the date of
withdrawal; and
(6) have, by the date of withdrawal, a total of at
least 20 years of creditable service with participating
systems under the Retirement Systems Reciprocal Act, of
which at least 15 years must be under this Fund (not
including any creditable service established under this
Section).
(b) An eligible person may establish up to 5 years of
creditable service under this Article, in increments of one
month, by making the contributions specified in subsection
(c).
The creditable service established under this Section may
be used for all purposes under this Article and the
Retirement Systems Reciprocal Act, except for the computation
of the highest average annual salary under Section 12-133 or
the determination of salary under this or any other Article
of this Code.
(c) For each month of creditable service established
under this Section, the person must pay to the Fund an
employee contribution to be determined by the Fund, equal to
4.50% of the person's monthly salary rate in effect on the
date of withdrawal. Subject to the requirements of
subsection (d), the person may elect to pay the required
employee contribution before the retirement annuity begins or
through deduction from the retirement annuity over a period
of up to 24 months.
If a person who retires under this Section dies before
all payments of employee contribution have been made, the
remaining payments shall be deducted from any survivor or
death benefits payable to the person's surviving spouse or
beneficiary.
All employee contributions paid under this Section shall
be deemed employee contributions for the purposes of
determining the tax levy under Section 12-149. Employee
contributions made under this Section may be refunded under
the same terms and conditions as other employee contributions
under this Article.
(d) A person who retires under the provisions of this
Section shall have his or her retirement annuity calculated
under the provisions of Section 12-133, except that the
retirement annuity shall not be subject to the reduction for
retirement under age 60 that is specified in Section 12-133.
(e) Notwithstanding Section 12-146 of this Article, an
annuitant who re-enters service under this Article after
receiving a retirement annuity based on the additional
benefits provided under this Section thereby forfeits the
right to continue to receive those additional benefits and
upon again retiring shall have his or her retirement annuity
recalculated without the additional benefits provided in this
Section.
(40 ILCS 5/12-166) (from Ch. 108 1/2, par. 12-166)
Sec. 12-166. To invest money. To invest and reinvest
the moneys of the fund subject to the requirements and
restrictions set forth in this Article and in Sections 1-109,
1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115 in
accordance with the provisions set forth in Section 1-113 of
this Act.
No investments shall be purchased or sold or in any
manner hypothecated except by the action of the board duly
entered in the record of its proceedings.
The board may hold, purchase, sell, assign, transfer or
dispose of any of the securities and investments in which any
of the moneys of the fund or the proceeds of those said
investments have been invested.
The board shall have the authority to enter into any
agreements and to execute any documents that it determines to
be necessary to complete any investment transaction.
All investments shall be clearly held and accounted for
to indicate ownership by the fund. The board may direct the
registration of securities or the holding of interests in
real property in the name of the fund or in the name of a
nominee created for the express purpose of registering
securities or holding interests in real property by a
national or state bank or trust company authorized to conduct
a trust business in the State of Illinois. The board may
hold title to interests in real property in the name of the
fund or in the name of a title holding corporation created
for the express purpose of holding title to interests in real
property.
Investments shall be carried at cost or at a value
determined in accordance with generally accepted accounting
principles and accounting procedures approved by the board.
No bank or savings and loan association shall receive
investment funds as permitted by this Section, unless it has
complied with the requirements established pursuant to
Section 6 of the Public Funds Investment Act. Those
requirements shall be applicable only at the time of
investment and shall not require the liquidation of any
investment at any time.
The board of trustees of any fund established under this
Article may not transfer its investment authority, nor
transfer the assets of the fund to any other person or entity
for the purpose of consolidating or merging its assets and
management with any other pension fund or public investment
authority, unless the board resolution authorizing such
transfer is submitted for approval to the contributors and
retirees of the fund at elections held not less than 30 days
after the adoption of such resolution by the board, and such
resolution is approved by a majority of the votes cast on the
question in both the contributors election and the retirees
election. The election procedures and qualifications
governing the election of trustees shall govern the
submission of resolutions for approval under this paragraph,
insofar as they may be made applicable.
(Source: P.A. 83-970.)
(40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
Sec. 14-104. Service for which contributions permitted.
Contributions provided for in this Section shall cover the
period of service granted. Except as otherwise provided in
this Section, the contributions shall, and be based upon the
employee's compensation and contribution rate in effect on
the date he last became a member of the System; provided that
for all employment prior to January 1, 1969 the contribution
rate shall be that in effect for a noncovered employee on the
date he last became a member of the System. Except as
otherwise provided in this Section, contributions permitted
under this Section shall include regular interest from the
date an employee last became a member of the System to the
date of payment.
These contributions must be paid in full before
retirement either in a lump sum or in installment payments in
accordance with such rules as may be adopted by the board.
(a) Any member may make contributions as required in
this Section for any period of service, subsequent to the
date of establishment, but prior to the date of membership.
(b) Any employee who had been previously excluded from
membership because of age at entry and subsequently became
eligible may elect to make contributions as required in this
Section for the period of service during which he was
ineligible.
(c) An employee of the Department of Insurance who,
after January 1, 1944 but prior to becoming eligible for
membership, received salary from funds of insurance companies
in the process of rehabilitation, liquidation, conservation
or dissolution, may elect to make contributions as required
in this Section for such service.
(d) Any employee who rendered service in a State office
to which he was elected, or rendered service in the elective
office of Clerk of the Appellate Court prior to the date he
became a member, may make contributions for such service as
required in this Section. Any member who served by
appointment of the Governor under the Civil Administrative
Code of Illinois and did not participate in this System may
make contributions as required in this Section for such
service.
(e) Any person employed by the United States government
or any instrumentality or agency thereof from January 1, 1942
through November 15, 1946 as the result of a transfer from
State service by executive order of the President of the
United States shall be entitled to prior service credit
covering the period from January 1, 1942 through December 31,
1943 as provided for in this Article and to membership
service credit for the period from January 1, 1944 through
November 15, 1946 by making the contributions required in
this Section. A person so employed on January 1, 1944 but
whose employment began after January 1, 1942 may qualify for
prior service and membership service credit under the same
conditions.
(f) An employee of the Department of Labor of the State
of Illinois who performed services for and under the
supervision of that Department prior to January 1, 1944 but
who was compensated for those services directly by federal
funds and not by a warrant of the Auditor of Public Accounts
paid by the State Treasurer may establish credit for such
employment by making the contributions required in this
Section. An employee of the Department of Agriculture of the
State of Illinois, who performed services for and under the
supervision of that Department prior to June 1, 1963, but was
compensated for those services directly by federal funds and
not paid by a warrant of the Auditor of Public Accounts paid
by the State Treasurer, and who did not contribute to any
other public employee retirement system for such service, may
establish credit for such employment by making the
contributions required in this Section.
(g) Any employee who executed a waiver of membership
within 60 days prior to January 1, 1944 may, at any time
while in the service of a department, file with the board a
rescission of such waiver. Upon making the contributions
required by this Section, the member shall be granted the
creditable service that would have been received if the
waiver had not been executed.
(h) Until May 1, 1990, an employee who was employed on a
full-time basis by a regional planning commission for at
least 5 continuous years may establish creditable service for
such employment by making the contributions required under
this Section, provided that any credits earned by the
employee in the commission's retirement plan have been
terminated.
(i) Any person who rendered full time contractual
services to the General Assembly as a member of a legislative
staff may establish service credit for up to 8 years of such
services by making the contributions required under this
Section, provided that application therefor is made not later
than July 1, 1991.
(j) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, an employee may establish service credit for a
period of up to 2 years spent in active military service for
which he does not qualify for credit under Section 14-105,
provided that (1) he was not dishonorably discharged from
such military service, and (2) the amount of service credit
established by a member under this subsection (j), when added
to the amount of military service credit granted to the
member under subsection (b) of Section 14-105, shall not
exceed 5 years.
(k) An employee who was employed on a full-time basis by
the Illinois State's Attorneys Association Statewide
Appellate Assistance Service LEAA-ILEC grant project prior to
the time that project became the State's Attorneys Appellate
Service Commission, now the Office of the State's Attorneys
Appellate Prosecutor, an agency of State government, may
establish creditable service for not more than 60 months
service for such employment by making contributions required
under this Section.
(l) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, a member may establish service credit for periods
of less than one year spent on authorized leave of absence
from service, provided that (1) the period of leave began on
or after January 1, 1982 and (2) any credit established by
the member for the period of leave in any other public
employee retirement system has been terminated. A member may
establish service credit under this subsection for more than
one period of authorized leave, and in that case the total
period of service credit established by the member under this
subsection may exceed one year. In determining the
contributions required for establishing service credit under
this subsection, the interest shall be calculated from the
beginning of the leave of absence to the date of payment.
(m) (l) Any person who rendered contractual services to
a member of the General Assembly as a worker in the member's
district office may establish creditable service for up to 3
years of those contractual services by making the
contributions required under this Section. The System shall
determine a full-time salary equivalent for the purpose of
calculating the required contribution. To establish credit
under this subsection, the applicant must apply to the System
by March 1, 1998.
(n) (l) Any person who rendered contractual services to
a member of the General Assembly as a worker providing
constituent services to persons in the member's district may
establish creditable service for up to 8 years of those
contractual services by making the contributions required
under this Section. The System shall determine a full-time
salary equivalent for the purpose of calculating the required
contribution. To establish credit under this subsection, the
applicant must apply to the System by March 1, 1998.
(o) A member who participated in the Illinois
Legislative Staff Internship Program may establish creditable
service for up to one year of that participation by making
the contribution required under this Section. The System
shall determine a full-time salary equivalent for the purpose
of calculating the required contribution. Credit may not be
established under this subsection for any period for which
service credit is established under any other provision of
this Code.
(Source: P.A. 90-32, eff. 6-27-97; 90-448, eff. 8-16-97;
90-511, eff. 8-22-97; revised 9-5-97.)
(40 ILCS 5/14-104.10)
Sec. 14-104.10. Federal or out-of-state employment. A
contributing employee may establish additional service credit
for periods of full-time employment by the federal government
or a unit of state or local government located outside
Illinois for which he or she does not qualify for credit
under any other provision of this Article, provided that (i)
the amount of service credit established by a person under
this Section shall not exceed 8 years or 40% of his or her
membership service under this Article, whichever is less,
(ii) the amount of service credit established by a person
under this Section for federal employment, when added to the
amount of all military service credit granted to the person
under this Article, shall not exceed 8 years, and (iii) any
credit received for the federal or out-of-state employment in
any federal or other public employee pension fund or
retirement system has been terminated or relinquished.
Credit may not be established under this Section for any
period of military service or for any period for which credit
has been or may be established under Section 14-110 or any
other provision of this Article.
In order to establish service credit under this Section,
the applicant must submit a written application to the System
by June 30, 1999 1998, including documentation of the federal
or out-of-state employment satisfactory to the Board, and pay
to the System (1) employee contributions at the rates
provided in this Article based upon the person's salary on
the last day as a participating employee prior to the federal
or out-of-state employment, or on the first day as a
participating employee after that employment, whichever is
greater, plus (2) an amount determined by the Board to be
equal to the employer's normal cost of the benefits accrued
for that employment, plus (3) regular interest on items (1)
and (2) from the date of conclusion of the employment to the
date of payment.
(Source: P.A. 90-32, eff. 6-27-97.)
(40 ILCS 5/14-133.1) (from Ch. 108 1/2, par. 14-133.1)
Sec. 14-133.1. Pickup of contributions.
(a) Each department shall pick up the employee
contributions required by Section 14-133 for all compensation
earned after December 31, 1981, and the contributions so
picked up shall be treated as employer contributions in
determining tax treatment under the United States Internal
Revenue Code; however, each department shall continue to
withhold federal and State income taxes based upon these
contributions until the Internal Revenue Service or the
federal courts rule that pursuant to Section 414(h) of the
United States Internal Revenue Code, these contributions
shall not be included as gross income of the employee until
such time as they are distributed or made available.
The department shall pay these employee contributions
from the same fund which is used in paying earnings to the
employee. The department 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 14 in the same
manner and to the same extent as employee contributions made
prior to the date picked up.
(b) Subject to the requirements of federal law, an
employee of a department may elect to have the department
pick up optional contributions that the employee has elected
to pay to the System, and the contributions so picked up
shall be treated as employer contributions for the purposes
of determining federal tax treatment. The department 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
election to have optional contributions picked up is
irrevocable and the optional contributions may not thereafter
be prepaid, by direct payment or otherwise. If the provision
authorizing the optional contribution requires payment by a
stated date (rather than the date of withdrawal or
retirement), that requirement shall be deemed to have been
satisfied if (i) on or before the stated date the employee
executes a valid irrevocable election to have the
contributions picked up under this subsection, and (ii) the
picked-up contributions are in fact paid to the System as
provided in the election.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/15-103.1 new)
Sec. 15-103.1. Traditional Benefit Package.
"Traditional benefit package": The defined benefit retirement
program maintained under the System which includes retirement
annuities payable directly from the System as provided in
Sections 15-135 through 15-140 (but disregarding Section
15-136.4), disability retirement annuities payable under
Section 15-153.2, death benefits payable directly from the
System as provided in Sections 15-141 through 15-144,
survivors insurance benefits payable directly from the System
as provided in Sections 15-145 through 15-149, and
contribution refunds as provided in Section 15-154. The
traditional benefit package also includes disability benefits
as provided in Sections 15-150 through 15-153.3.
(40 ILCS 5/15-103.2 new)
Sec. 15-103.2. Portable Benefit Package. "Portable
benefit package": The defined benefit retirement program
maintained under the System which includes retirement
annuities payable directly from the System as provided in
Sections 15-135 through 15-139 (specifically including
Section 15-136.4), disability retirement annuities payable
under Section 15-153.2, death benefits payable directly from
the System as provided in Sections 15-141 through 15-144, and
contribution refunds as provided in Section 15-154. The
portable benefit package also includes disability benefits as
provided in Sections 15-150 through 15-153.3. The portable
benefit package does not include the survivors insurance
benefits payable directly from the System as provided in
Sections 15-145 through 15-149.
(40 ILCS 5/15-103.3 new)
Sec. 15-103.3. Self-Managed Plan. "Self-managed plan":
The defined contribution retirement program maintained under
the System as described in Section 15-158.2. The
self-managed plan also includes disability benefits as
provided in Sections 15-150 through 15-153.3 (but
disregarding disability retirement annuities under Section
15-153.2). The self-managed plan does not include retirement
annuities, death benefits, or survivors insurance benefits
payable directly from the System as provided in Sections
15-135 through 15-149 and Section 15-153.2, or refunds
determined under Section 15-154.
(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;
(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); or
(8) participates in an optional program for
part-time workers under Section 15-158.1.
(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
or an officer of a national teacher organization 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.
(Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
90-576, eff. 3-31-98.)
(40 ILCS 5/15-134.5 new)
Sec. 15-134.5. Retirement Program Elections.
(a) All participating employees are participants under
the traditional benefit package prior to January 1, 1998.
Effective as of the date that an employer elects, as
described in Section 15-158.2, to offer to its employees the
portable benefit package and the self-managed plan as
alternatives to the traditional benefit package, each of that
employer's eligible employees (as defined in subsection (b))
shall be given the choice to elect which retirement program
he or she wishes to participate in with respect to all
periods of covered employment occurring on and after the
effective date of the employee's election. The retirement
program election made by an eligible employee must be made in
writing, in the manner prescribed by the System, and within
the time period described in subsection (d). The employee
election authorized by this Section is a one-time,
irrevocable election. If an employee terminates employment
after making the election provided under this subsection (a),
then upon his or her subsequent re-employment with an
employer the original election shall automatically apply to
him or her, provided that the employer is then a
participating employer as described in Section 15-158.2.
(b) "Eligible employee" means an employee (as defined in
Section 15-107) who is either a currently eligible employee
or a newly eligible employee. For purposes of this Section,
a "currently eligible employee" is an employee who is
employed by an employer on the effective date on which the
employer offers to its employees the portable benefit package
and the self-managed plan as alternatives to the traditional
benefit package. A "newly eligible employee" is an employee
who first becomes employed by an employer after the effective
date on which the employer offers its employees the portable
benefit package and the self-managed plan as alternatives to
the traditional benefit package.
(c) An eligible employee who at the time he or she is
first eligible to make the election described in subsection
(a) does not have sufficient age and service to qualify for a
retirement annuity under Section 15-135 may elect to
participate in the traditional benefit package, the portable
benefit package, or the self-managed plan. An eligible
employee who has sufficient age and service to qualify for a
retirement annuity under Section 15-135 at the time he or she
is first eligible to make the election described in
subsection (a) may elect to participate in the traditional
benefit package or the portable benefit package, but may not
elect to participate in the self-managed plan.
(d) A currently eligible employee must make this
election within one year after the effective date of the
employer's adoption of the self-managed plan. A newly
eligible employee must make this election within 60 days
after becoming an eligible employee. The employer shall not
remit contributions to the system on behalf of a newly
eligible employee until the earlier of the expiration of the
employee's 60-day election period or the date on which the
employee submits a properly completed election to the
employer or to the system.
(e) If an eligible employee elects the portable benefit
package, that election shall not become effective until the
one-year anniversary of the date on which the election is
filed with the system, provided the employee remains
continuously employed by the employer throughout the one-year
waiting period, and any benefits payable to or on account of
the employee before such one-year waiting period has ended
shall not be determined under the provisions applicable to
the portable benefit package but shall instead be determined
in accordance with the traditional benefit package. If an
eligible employee who has elected the portable benefit
package terminates employment covered by the system before
the one-year waiting period has ended, then no benefits shall
be determined under the portable benefit package provisions
while he or she is inactive in the system and upon
re-employment with an employer covered by the system he or
she shall begin a new one-year waiting period before the
provisions of the portable benefit package become effective.
(f) An eligible employee shall be provided with written
information prepared or prescribed by the system which
describes the employee's retirement program choices. The
eligible employee shall be offered an opportunity to receive
counseling from the system prior to making his or her
election. This counseling may consist of videotaped
materials, group presentations, individual consultation with
an employee or authorized representative of the system in
person or by telephone or other electronic means, or any
combination of these methods.
(40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
Sec. 15-135. Retirement annuities - Conditions.
(a) A participant who retires in one of the following
specified years with the specified amount of service is
entitled to a retirement annuity at any age under the
retirement program applicable to the participant:
35 years if retirement is in 1997 or before;
34 years if retirement is in 1998;
33 years if retirement is in 1999;
32 years if retirement is in 2000;
31 years if retirement is in 2001;
30 years if retirement is in 2002;
35 years if retirement is in 2003 or later.
A participant with 8 or more years of service after
September 1, 1941, is entitled to a retirement annuity on or
after attainment of age 55.
A participant with at least 5 but less than 8 years of
service after September 1, 1941, is entitled to a retirement
annuity on or after attainment of age 62.
A participant who has at least 25 years of service in
this system as a police officer or firefighter is entitled to
a retirement annuity on or after the attainment of age 50, if
Rule 4 of Section 15-136 is applicable to the participant.
(b) The annuity payment period shall begin on the date
specified by the participant submitting a written
application, which date shall not be prior to termination of
employment or more than one year before the application is
received by the board; however, if the participant is not an
employee of an employer participating in this System or in a
participating system as defined in Article 20 of this Code on
April 1 of the calendar year next following the calendar year
in which the participant attains following the attainment of
age 70 1/2, the annuity payment period shall begin on that
date regardless of whether an application has been filed.
(c) An annuity is not payable if the amount provided
under Section 15-136 is less than $10 per month.
(Source: P.A. 90-65, eff. 7-7-97.)
(40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
Sec. 15-136. Retirement annuities - Amount. The
provisions of this Section 15-136 apply only to those
participants who are participating in the traditional benefit
package or the portable benefit package and do not apply to
participants who are participating in the self-managed plan.
(a) The amount of a participant's the retirement
annuity, expressed in the form of a single-life annuity,
shall be determined by whichever of the following rules is
applicable and provides the largest annuity:
Rule 1: The retirement annuity shall be 1.67% of final
rate of earnings for each of the first 10 years of service,
1.90% for each of the next 10 years of service, 2.10% for
each year of service in excess of 20 but not exceeding 30,
and 2.30% for each year in excess of 30; or for persons who
retire on or after January 1, 1998, 2.2% of the final rate of
earnings for each year of service. However, the annuity for
those persons having made an election under Section
15-154(a-1) shall be calculated and payable under the
portable retirement benefit program pursuant to the
provisions of Section 15-136.4.
Rule 2: The retirement annuity shall be the sum of the
following, determined from amounts credited to the
participant in accordance with the actuarial tables and the
prescribed rate of interest in effect at the time the
retirement annuity begins:
(i) The normal annuity which can be provided on an
actuarially equivalent basis, by the accumulated normal
contributions as of the date the annuity begins; and
(ii) an annuity from employer contributions of an
amount which can be provided on an actuarially equivalent
basis from the accumulated normal contributions made by
the participant under Section 15-113.6 and Section
15-113.7 plus 1.4 times all other accumulated normal
contributions made by the participant, except that the
annuity for those persons having made an election under
Section 15-154(a-1) shall be calculated and payable under
the portable retirement benefit program pursuant to the
provisions of Section 15-136.4.
With respect to a police officer or firefighter who retires
on or after the effective date of this amendatory Act of
1998, the accumulated normal contributions taken into account
under clauses (i) and (ii) of this Rule 2 shall include the
additional normal contributions made by the police officer or
firefighter under Section 15-157(a).
Rule 3: The retirement annuity of a participant who is
employed at least one-half time during the period on which
his or her final rate of earnings is based, shall be equal to
the participant's years of service not to exceed 30,
multiplied by (1) $96 if the participant's final rate of
earnings is less than $3,500, (2) $108 if the final rate of
earnings is at least $3,500 but less than $4,500, (3) $120 if
the final rate of earnings is at least $4,500 but less than
$5,500, (4) $132 if the final rate of earnings is at least
$5,500 but less than $6,500, (5) $144 if the final rate of
earnings is at least $6,500 but less than $7,500, (6) $156 if
the final rate of earnings is at least $7,500 but less than
$8,500, (7) $168 if the final rate of earnings is at least
$8,500 but less than $9,500, and (8) $180 if the final rate
of earnings is $9,500 or more, except that the annuity for
those persons having made an election under Section
15-154(a-1) shall be calculated and payable under the
portable retirement benefit program pursuant to the
provisions of Section 15-136.4.
Rule 4: A participant who is at least age 50 and has 25
or more years of service as a police officer or firefighter,
and a participant who is age 55 or over and has at least 20
but less than 25 years of service as a police officer or
firefighter, shall be entitled to a retirement annuity of
2 1/4% of the final rate of earnings for each of the first 10
years of service as a police officer or firefighter, 2 1/2%
for each of the next 10 years of service as a police officer
or firefighter, and 2 3/4% for each year of service as a
police officer or firefighter in excess of 20, except that
the annuity for those persons having made an election under
Section 15-154(a-1) shall be calculated and payable under the
portable retirement benefit program pursuant to the
provisions of Section 15-136.4. The retirement annuity for
all other service shall be computed under Rule 1, payable
under the portable retirement benefit program pursuant to the
provisions of Section 15-136.4, if applicable.
For purposes of this Rule 4, a participant's service as a
firefighter shall also include the following:
(i) service that is performed while the person is
an employee under subsection (h) of Section 15-107; and
(ii) in the case of 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 transferred to another job with the
University of Illinois, service performed as an employee
of the University of Illinois in a position other than
police officer or firefighter, from the date of that
transfer until the employee's next termination of service
with the University of Illinois.
(b) The retirement annuity provided under Rules 1 and 3
above shall be reduced by 1/2 of 1% for each month the
participant is under age 60 at the time of retirement.
However, this reduction shall not apply in the following
cases:
(1) For a disabled participant whose disability
benefits have been discontinued because he or she has
exhausted eligibility for disability benefits under
clause (6) of Section 15-152;
(2) For a participant who has at least the number
of years of service required to retire at any age under
subsection (a) of Section 15-135; or
(3) For that portion of a retirement annuity which
has been provided on account of service of the
participant during periods when he or she performed the
duties of a police officer or firefighter, if these
duties were performed for at least 5 years immediately
preceding the date the retirement annuity is to begin.
(c) The maximum retirement annuity provided under Rules
1, 2, and 4 shall be the lesser of (1) the annual limit of
benefits as specified in Section 415 of the Internal Revenue
Code of 1986, as such Section may be amended from time to
time and as such benefit limits shall be adjusted by the
Commissioner of Internal Revenue, and (2) 80% of final rate
of earnings.
(d) An annuitant whose status as an employee terminates
after August 14, 1969 shall receive automatic increases in
his or her retirement annuity as follows:
Effective January 1 immediately following the date the
retirement annuity begins, the annuitant shall receive an
increase in his or her monthly retirement annuity of 0.125%
of the monthly retirement annuity provided under Rule 1, Rule
2, Rule 3, or Rule 4, contained in this Section, multiplied
by the number of full months which elapsed from the date the
retirement annuity payments began to January 1, 1972, plus
0.1667% of such annuity, multiplied by the number of full
months which elapsed from January 1, 1972, or the date the
retirement annuity payments began, whichever is later, to
January 1, 1978, plus 0.25% of such annuity multiplied by the
number of full months which elapsed from January 1, 1978, or
the date the retirement annuity payments began, whichever is
later, to the effective date of the increase.
The annuitant shall receive an increase in his or her
monthly retirement annuity on each January 1 thereafter
during the annuitant's life of 3% of the monthly annuity
provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
this Section. The change made under this subsection by P.A.
81-970 is effective January 1, 1980 and applies to each
annuitant whose status as an employee terminates before or
after that date.
Beginning January 1, 1990, all automatic annual increases
payable under this Section shall be calculated as a
percentage of the total annuity payable at the time of the
increase, including all increases previously granted under
this Article.
The change made in this subsection by P.A. 85-1008 is
effective January 26, 1988, and is applicable without regard
to whether status as an employee terminated before that date.
(e) If, on January 1, 1987, or the date the retirement
annuity payment period begins, whichever is later, the sum of
the retirement annuity provided under Rule 1 or Rule 2 of
this Section and the automatic annual increases provided
under the preceding subsection or Section 15-136.1, amounts
to less than the retirement annuity which would be provided
by Rule 3, the retirement annuity shall be increased as of
January 1, 1987, or the date the retirement annuity payment
period begins, whichever is later, to the amount which would
be provided by Rule 3 of this Section. Such increased amount
shall be considered as the retirement annuity in determining
benefits provided under other Sections of this Article. This
paragraph applies without regard to whether status as an
employee terminated before the effective date of this
amendatory Act of 1987, provided that the annuitant was
employed at least one-half time during the period on which
the final rate of earnings was based.
(f) A participant is entitled to such additional annuity
as may be provided on an actuarially equivalent basis, by any
accumulated additional contributions to his or her credit.
However, the additional contributions made by the participant
toward the automatic increases in annuity provided under this
Section shall not be taken into account in determining the
amount of such additional annuity.
(g) If, (1) by law, a function of a governmental unit,
as defined by Section 20-107 of this Code, is transferred in
whole or in part to an employer, and (2) a participant
transfers employment from such governmental unit to such
employer within 6 months after the transfer of the function,
and (3) the sum of (A) the annuity payable to the participant
under Rule 1, 2, or 3 of this Section (B) all proportional
annuities payable to the participant by all other retirement
systems covered by Article 20, and (C) the initial primary
insurance amount to which the participant is entitled under
the Social Security Act, is less than the retirement annuity
which would have been payable if all of the participant's
pension credits validated under Section 20-109 had been
validated under this system, a supplemental annuity equal to
the difference in such amounts shall be payable to the
participant.
(h) On January 1, 1981, an annuitant who was receiving a
retirement annuity on or before January 1, 1971 shall have
his or her retirement annuity then being paid increased $1
per month for each year of creditable service. On January 1,
1982, an annuitant whose retirement annuity began on or
before January 1, 1977, shall have his or her retirement
annuity then being paid increased $1 per month for each year
of creditable service.
(i) On January 1, 1987, any annuitant whose retirement
annuity began on or before January 1, 1977, shall have the
monthly retirement annuity increased by an amount equal to 8¢
per year of creditable service times the number of years that
have elapsed since the annuity began.
(Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
eff. 8-16-97; 90-576, eff. 3-31-98.)
(40 ILCS 5/15-136.4)
Sec. 15-136.4. Retirement and Survivor Benefits Under
Portable Retirement Benefit Package Program.
(a) This Section 15-136.4 describes the form of annuity
and survivor benefits available to a participant who has
elected the portable benefit package and has completed the
one-year waiting period required under subsection (e) of
Section 15-134.5. For purposes of this Section, the term
"eligible spouse" means the husband or wife of a participant
to whom the participant is married on the date the
participant's retirement annuity begins, provided. however,
that if the participant should die prior to the commencement
of retirement date the annuity benefits would have begun,
then "eligible spouse" means the husband or wife, if any, to
whom the participant was married throughout the one-year
period preceding the date of his or her death.
(b) This subsection (b) describes the normal form of
annuity payable to a participant subject to this Section
15-136.4. If the participant is unmarried on the date his or
her annuity payments commence, then the annuity payments
shall be made in the form of a single-life annuity as
described in Section 15-118. If the participant is married
on the date his or her annuity payments commence, then the
annuity payments shall be paid in the form of a qualified
joint and survivor annuity that is the actuarial equivalent
of the single-life annuity. Under the "qualified joint and
survivor annuity", a reduced amount shall be paid to the
participant for his or her lifetime and his or her eligible
spouse, if surviving at the participant's death, shall be
entitled to receive thereafter a lifetime survivorship
annuity in a monthly amount equal to 50% of the reduced
monthly amount that was payable to the participant. The last
payment of a qualified joint and survivor annuity shall be
made as of the first day of the month in which the death of
the survivor occurs. If a participant has an eligible spouse
on the date his or her annuity payments commence, the annuity
shall be paid in the form of a 50% joint and survivor annuity
unless the participant elects otherwise in writing and his or
her eligible spouse consents to that election. Under a 50%
joint and survivor annuity, a reduced amount shall be paid to
the participant for his or her lifetime and his or her
eligible spouse, if surviving at the participant's death,
shall be entitled to receive thereafter a lifetime
survivorship annuity in a monthly amount equal to 50% of the
reduced monthly amount that was payable to the participant.
The reduced amount payable to the participant under the 50%
joint and survivor annuity shall be determined so that the
aggregate of the annuity payments expected to be made to the
participant and his or her eligible spouse is the actuarial
equivalent of a single-life annuity. The last payment of a
50% joint and survivor annuity shall be made as of the first
day of the month in which the death of the survivor occurs.
(c) Instead of the normal form of annuity that would be
paid under subsection (b), a participant may elect in writing
within the 90-day period prior to the date his or her annuity
payments commence to waive the normal form of annuity payment
and receive an optional form of annuity as described in
subsection (h). If the participant is married and elects an
optional form of annuity under subsection (h) other than a
joint and survivor annuity with the eligible spouse
designated as the contingent annuitant, then such election
shall require the consent of his or her eligible spouse in
the manner described in subsection (d). At any time during
the 90-day period preceding the date the participant's
annuity commences, the participant may revoke the optional
form elected under this subsection (c) and reinstate coverage
under the qualified joint and survivor annuity without the
spouse's consent, but an election to revoke the optional form
elected and elect a new optional form or designate a
different contingent annuitant shall not be effective without
the eligible spouse's consent. Instead of the 50% joint and
survivor annuity, a participant may elect in writing, within
the 90-day period prior to the date his or her annuity
payments commence, and only with the consent of his or her
eligible spouse, to receive a monthly amount in the form of a
single-life annuity. A participant may also elect instead an
optional form of benefit under subsection (k). However, if
the participant does elect an optional form of benefit under
subsection (k) and if the contingent annuitant under the
option is not the participant's eligible spouse, then the
optional election shall be canceled and the annuity shall be
paid in the form of a 50% joint and survivor annuity unless,
within the 90-day period preceding the annuity commencement
date, the eligible spouse consents to the optional election.
(d) A participant may also revoke any election made
under this Section at any time during the 90-day period
preceding the date the participant's annuity commences if the
purpose of such revocation is to reinstate coverage under the
50% joint and survivor annuity.
(d) (e) The eligible spouse's consent to any election
made pursuant to this Section that requires the eligible
spouse's consent shall be in writing and shall acknowledge
the effect of the consent. In addition, the eligible
spouse's signature on the written consent must be witnessed
by a notary public. The eligible spouse's consent need not
be obtained if the system is satisfied that there is no
eligible spouse, that the eligible spouse cannot be located,
or because of any other relevant circumstances. An eligible
spouse's consent under this Section is valid only with
respect to the specified optional form of payment and, if
applicable, alternate contingent annuitant designated by the
participant. If the optional form of payment or the
alternate contingent annuitant is subsequently changed (other
than by a revocation of the optional form and reinstatement
of the qualified joint and survivor annuity), a new consent
by the eligible spouse is required. The eligible spouse's
consent to an election made by a participant pursuant to this
Section, once made, may not be revoked by the eligible
spouse.
(e) (f) Within a reasonable period of time preceding the
date a participant's annuity commences, a participant shall
be supplied with a written explanation of (1) the terms and
conditions of the normal form single-life annuity and
qualified 50% joint and survivor annuity, (2) the
participant's right, if any, to elect a single-life annuity
or an optional form of payment under subsection (h) (k) in
lieu of the 50% joint and survivor annuity and subject, in
certain cases, to his or her eligible spouse's consent, if
applicable, and (3) the participant's right to reinstate
coverage under the qualified 50% joint and survivor annuity
prior to his or her annuity commencement date by revoking an
election of a single-life annuity or an optional form of
benefit under subsection (h) (k).
(g) If a participant does not have an eligible spouse
on the date his or her annuity payments commence, the
participant shall receive a single-life annuity, subject to
his or her right, if any, to elect an optional form of
benefit. The last payment of the single-life annuity shall be
made as of the first day of the month in which the death of
the participant occurs.
(h) A participant with a least 5 years of service whose
employment has not terminated shall be covered by the 50%
joint and survivor annuity provisions so that if he or she
dies prior to termination of employment, his or her eligible
spouse will be entitled to receive an annuity. The annuity
payable under this subsection (h) to the eligible spouse
shall be actuarially equivalent to the
(f) If a married participant with at least 5 years of
service dies prior to commencing retirement annuity payments
and prior to taking a refund under Section 15-154, his or her
eligible spouse is entitled to receive a pre-retirement
survivor annuity, if there is not then in effect a waiver of
the pre-retirement survivor annuity. The pre-retirement
survivor annuity payable under this subsection shall be a
monthly annuity payable for the eligible spouse's life,
commencing as of the beginning of the month next following
the later of the date of the participant's death or the date
the participant would have first met the eligibility
requirements for retirement, and continuing through the
beginning of the month in which the death of the eligible
spouse occurs. The monthly amount payable to the spouse
under the pre-retirement survivor annuity shall be equal to
the monthly amount that would be payable as a survivor
annuity under the qualified joint and survivor annuity
described in subsection (b) if: (1) in the case of a
participant who dies on or after the date on which the
participant has met the eligibility requirements for attained
the earliest retirement age, the participant had retired with
an immediate qualified joint and survivor annuity on the day
before the participant's date of death; or (2) in the case
of a participant who dies on or before the earliest date on
which the participant would have met the eligibility
requirements for attained the earliest retirement age, the
participant had separated from service on the date of death,
survived to the earliest retirement age based on service
prior to his or her death, retired with an immediate
qualified joint and survivor annuity at the earliest
retirement age, and died on the day after the day on which
the participant would have attained the earliest retirement
age.
(g) A married participant who has not retired may elect
at any time to waive the pre-retirement survivor annuity
described in subsection (f). Any such election shall require
the consent of the participant's eligible spouse in the
manner described in subsection (e). A waiver of the
pre-retirement survivor annuity shall increase the lump sum
death benefit payable under subsection (b) of Section 15-141.
Prior to electing any waiver of the pre-retirement survivor
annuity, the participant shall be provided with a written
explanation of (1) the terms and conditions of the
pre-retirement survivor annuity and the death benefits
payable from the system both with and without the
pre-retirement survivor annuity, (2) the participant's right
to elect a waiver of the pre-retirement survivor annuity
coverage subject to his or her spouse's consent, and (3) the
participant's right to reinstate pre-retirement survivor
annuity coverage at any time by revoking a prior waiver of
such coverage.
(h) By filing a timely election with the system, a
participant who will be eligible to receive a retirement
annuity under this Section may waive the normal form of
annuity payment described in subsection (b), subject to
obtaining the consent of his or her eligible spouse, if
applicable, and elect to receive any one of the following
optional annuity forms:
(1) Joint and Survivor Annuity Options: The
participant may elect to receive a reduced annuity
payable for his or her life and to have a lifetime
survivorship annuity in a monthly amount equal to 50%,
75%, or 100% (as elected by the participant) of that
reduced monthly amount, to be paid after the
participant's death to his or her contingent annuitant,
if the contingent annuitant is alive at the time of the
participant's death.
(2) Single-Life Annuity Option (optional for
married participants). The participant may elect to
receive a single-life annuity payable for his or her life
only.
All optional forms shall be in an amount that is the
actuarial equivalent of the single-life annuity.
For the purposes of this Section, the term "contingent
annuitant" means the beneficiary who is designated by a
participant at the time the participant elects a joint and
survivor annuity to receive the lifetime survivorship annuity
in the event the beneficiary survives the participant at the
participant's death.
The annuity payable to an eligible spouse of a
participant shall commence as of the beginning of the month
next following the later of the date of death or the date the
participant would have met the eligibility requirements for
an annuity and shall continue through the beginning of the
month in which the death of the eligible spouse occurs.
No benefit shall be payable under this subsection (h) for
death during employment after the participant has satisfied
the requirements for retirement if an option is effective
under subsection (k).
(i) A participant who (1) has terminated employment with
at least 5 years of service, (2) has not begun receiving
annuity payments, (3) has not taken a refund under Section
15-154(a-2), and (4) has not elected an effective option
under subsection (k), shall be covered by the 50% joint and
survivor annuity provisions of subsection (b) until the date
his or her annuity payments commence. If the participant
dies before the date his or her annuity payments commence,
the participant's surviving eligible spouse shall receive an
annuity computed in accordance with the applicable provisions
of this Section as if the participant's annuity payments had
commenced on the first day of the month coincident with or
next following the later of his or her date of death or the
date the participant would have been eligible for a
retirement annuity based on service prior to his or her
death. The annuity payable to such an eligible spouse shall
commence on the first day of the month coincident with or
next following the later of the participant's date of death
or the date the participant would have been eligible for a
retirement annuity based on service prior to his death and
shall continue through the beginning of the month in which
the death of the eligible spouse occurs.
(j) The provisions of subsection (i) shall not affect
the right of a participant to elect a single-life annuity,
pursuant to the provisions of subsection (b).
(k) By filing a timely election with the system, a
participant who will be eligible to receive a retirement
annuity under this Section may designate his or her spouse or
any person approved by the system as his or her contingent
annuitant and elect to receive an annuity payable in
accordance with one of the following options, instead of the
annuity to which he or she may otherwise become entitled:
Option 1: The participant shall receive a reduced
annuity payable for life, and payments in the amount of
100% of such reduced amount shall, after the
participant's death, be continued to the contingent
annuitant during the latter's lifetime.
Option 2: The participant shall receive a reduced
annuity payable for life, and payments in the amount of
75% of such reduced annuity shall, after the
participant's death, be continued to the contingent
annuitant during the latter's lifetime.
Option 3: The participant shall receive a reduced
annuity payable for life, and payments in the amount of
50% of such reduced annuity shall, after the
participant's death, be continued to the contingent
annuitant during the latter's lifetime.
The aggregate of the annuity payments expected to be paid
to a participant and his contingent annuitant under any of
the above options shall be the actuarial equivalent of the
annuity that the participant is otherwise entitled to receive
upon retirement.
(i) Under no circumstances may an option be elected,
changed, or revoked after the date the participant's
retirement annuity commences. An option in favor of a
contingent annuitant who is not the participant's eligible
spouse may be revoked at any time prior to the date the
participant's annuity payments commence. If the contingent
annuitant under the elected option is not the participant's
eligible spouse, then the election is valid only if the
eligible spouse consents to the participant's optional
election and to the specific contingent annuitant within the
90-day period preceding the date the participant's annuity
commences.
(j) An election made pursuant to this subsection (h) (k)
shall become inoperative if the participant's employment
terminates before he or she is eligible for a retirement
annuity, or if the participant or the contingent annuitant
dies before the date the participant's annuity payments
commence, or if the eligible spouse's consent is required and
not given.
(k) For purposes of applying the provisions of Section
20-123 of this Code, the portable benefit package shall be
treated as if it were provided by a participating system that
has no survivor's annuity benefit. An effective option under
this subsection (k) takes the place of any benefit otherwise
payable under this Section, and the form made available by
the system for election of the option shall so specify.
(1) Within the appropriate applicable period under
Section 417 of the Internal Revenue Code of 1986, as amended
from time to time, a participant shall be supplied with a
written explanation of (1) the terms and conditions of the
preretirement survivor annuity under subsections (h) and (i),
(2) the participant's right, if any, to elect a single-life
annuity or an optional form of payment under subsection (k)
in lieu of the preretirement survivor annuity and subject, in
certain cases, to his or her eligible spouse's consent, and
(3) the participant's right to reinstate coverage under the
preretirement survivor annuity by revoking an election of a
single-life annuity or an optional form of benefit under
subsection (k).
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
Sec. 15-141. Death benefits - Death of participant.
(a) The beneficiary of a participant under the
traditional benefit package is entitled to a death benefit
equal to the sum of (1) the employee's accumulated normal and
additional contributions on the date of death, (2) the
employee's accumulated survivors insurance contributions on
the date of death, if a survivors insurance benefit is not
payable, (3) an amount equal to the employee's final rate of
earnings, but not more than $5,000 if (i) the beneficiary,
under rules of the board, was dependent upon the participant,
(ii) the participant was a participating employee immediately
prior to his or her death, and (iii) a survivors insurance
benefit is not payable, and (4) $2,500 if (i) the beneficiary
was not dependent upon the participant, (ii) the participant
was a participating employee immediately prior to his or her
death, and (iii) a survivors insurance benefit is not
payable.
(b) However, If the participant has elected to
participate in the portable benefit package and has completed
the one-year waiting period required under subsection (e) of
retirement benefit program by making the election specified
in Section 15-134.5 15-154(a-1), the death benefit shall be
calculated as follows. The death benefit shall be equal to
the employee's accumulated normal and additional
contributions on the date of death plus, or if the employee
died with 5 or more years of service for employment as
defined in Section 15-113.1, his or her beneficiary shall
also be entitled to employer contributions in an amount equal
to the sum of the accumulated normal and additional
contributions; except that if a pre-retirement survivor
annuity benefit to a surviving spouse is payable under
Section 15-136.4, the death benefit payable under this
paragraph shall be reduced, but to not less than zero, by the
actuarial value of the benefit payable to the surviving
spouse. The beneficiary of the participant must be his or
her spouse unless the spouse has consented to the designation
of another beneficiary in the manner described in subsection
(d) of Section 15-136.4.
(c) If payments are made under any State or Federal
Workers' Compensation or Occupational Diseases Law because of
the death of an employee, the portion of the death benefit
payable from employer contributions shall be reduced by the
total amount of the payments.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142)
Sec. 15-142. Death benefits - Death of annuitant. Upon
the death of an annuitant receiving a retirement annuity or
disability retirement annuity, the annuitant's beneficiary
shall, if a survivor's insurance benefit is not payable under
Section 15-145 and a pre-retirement survivor or an annuity is
not payable under Section 15-136.4, be entitled to a death
benefit equal to the greater of the following: (1) the
excess, if any, of the sum of the accumulated normal,
survivors insurance, and additional contributions as of the
date of retirement, or the date the disability retirement
annuity began, whichever is earlier, over the sum of all
annuity payments made prior to the date of death, or (2)
$1,000.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
Sec. 15-145. Survivors insurance benefits; conditions
and amounts.
(a) The survivors insurance benefits provided under this
Section shall be payable to the eligible survivors of a
participant covered under the traditional benefit package
upon the death of (1) a participating employee with at least
1 1/2 years of service, (2) a participant who terminated
employment with at least 10 years of service, and (3) an
annuitant in receipt of a retirement annuity or disability
retirement annuity under this Article.
Service under the State Employees' Retirement System of
Illinois, the Teachers' Retirement System of the State of
Illinois and the Public School Teachers' Teacher's Pension
and Retirement Fund of Chicago shall be considered in
determining eligibility for survivors benefits under this
Section.
If by law, a function of a governmental unit, as defined
by Section 20-107, is transferred in whole or in part to an
employer, and an employee transfers employment from this
governmental unit to such employer within 6 months after the
transfer of this function, the service credits in the
governmental unit's retirement system which have been
validated under Section 20-109 shall be considered in
determining eligibility for survivors benefits under this
Section.
(b) A surviving spouse of a deceased participant, or of
a deceased annuitant who had a survivors insurance
beneficiary at the time of retirement, shall receive a
survivors annuity of 30% of the final rate of earnings.
Payments shall begin on the day following the participant's
or annuitant's death or the date the surviving spouse attains
age 50, whichever is later, and continue until the death of
the surviving spouse. The annuity shall be payable to the
surviving spouse prior to attainment of age 50 if the
surviving spouse has in his or her care a deceased
participant's or annuitant's dependent unmarried child under
age 18 (under age 22 if a full-time student) who is eligible
for a survivors annuity. Remarriage of a surviving spouse
prior to attainment of age 55 shall disqualify him or her for
the receipt of a survivors annuity.
(c) Each dependent unmarried child under age 18 (under
age 22 if a full-time student) of a deceased participant, or
of a deceased annuitant who had a survivors insurance
beneficiary at the time of his or her retirement, shall
receive a survivors annuity equal to the sum of (1) 20% of
the final rate of earnings, and (2) 10% of the final rate of
earnings divided by the number of children entitled to this
benefit. Payments shall begin on the day following the
participant's or annuitant's death and continue until the
child marries, dies, or attains age 18 (age 22 if a full-time
student). If the child is in the care of a surviving spouse
who is eligible for survivors insurance benefits, the child's
benefit shall be paid to the surviving spouse.
Each unmarried child over age 18 of a deceased
participant or of a deceased annuitant who had a survivor's
insurance beneficiary at the time of his or her retirement,
and who was dependent upon the participant or annuitant by
reason of a physical or mental disability which began prior
to the date the child attained age 18 (age 22 if a full-time
student), shall receive a survivor's annuity equal to the sum
of (1) 20% of the final rate of earnings, and (2) 10% of the
final rate of earnings divided by the number of children
entitled to survivors benefits. Payments shall begin on the
day following the participant's or annuitant's death and
continue until the child marries, dies, or is no longer
disabled. If the child is in the care of a surviving spouse
who is eligible for survivors insurance benefits, the child's
benefit may be paid to the surviving spouse. For the
purposes of this Section, disability means inability to
engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment that can
be expected to result in death or that has lasted or can be
expected to last for a continuous period of at least one
year.
(d) Each dependent parent of a deceased participant, or
of a deceased annuitant who had a survivors insurance
beneficiary at the time of his or her retirement, shall
receive a survivors annuity equal to the sum of (1) 20% of
final rate of earnings, and (2) 10% of final rate of earnings
divided by the number of parents who qualify for the benefit.
Payments shall begin when the parent reaches age 55 or the
day following the participant's or annuitant's death,
whichever is later, and continue until the parent dies.
Remarriage of a parent prior to attainment of age 55 shall
disqualify the parent for the receipt of a survivors annuity.
(e) In addition to the survivors annuity provided above,
each survivors insurance beneficiary shall, upon death of the
participant or annuitant, receive a lump sum payment of
$1,000 divided by the number of such beneficiaries.
(f) The changes made in this Section by Public Act
81-712 pertaining to survivors annuities in cases of
remarriage prior to age 55 shall apply to each survivors
insurance beneficiary who remarries after June 30, 1979,
regardless of the date that the participant or annuitant
terminated his employment or died.
(g) On January 1, 1981, any person who was receiving a
survivors annuity on or before January 1, 1971 shall have the
survivors annuity then being paid increased by 1% for each
full year which has elapsed from the date the annuity began.
On January 1, 1982, any survivor whose annuity began after
January 1, 1971, but before January 1, 1981, shall have the
survivor's annuity then being paid increased by 1% for each
year which has elapsed from the date the survivor's annuity
began. On January 1, 1987, any survivor who began receiving a
survivor's annuity on or before January 1, 1977, shall have
the monthly survivor's annuity increased by $1 for each full
year which has elapsed since the date the survivor's annuity
began.
(h) If the sum of the lump sum and total monthly
survivor benefits payable under this Section upon the death
of a participant amounts to less than the sum of the death
benefits payable under items (2) and (3) of Section 15-141,
the difference shall be paid in a lump sum to the beneficiary
of the participant who is living on the date that this
additional amount becomes payable.
(i) If the sum of the lump sum and total monthly
survivor benefits payable under this Section upon the death
of an annuitant receiving a retirement annuity or disability
retirement annuity amounts to less than the death benefit
payable under Section 15-142, the difference shall be paid to
the beneficiary of the annuitant who is living on the date
that this additional amount becomes payable.
(j) Effective on the later of (1) January 1, 1990, or
(2) the January 1 on or next after the date on which the
survivor annuity begins, if the deceased member died while
receiving a retirement annuity, or in all other cases the
January 1 nearest the first anniversary of the date the
survivor annuity payments begin, every survivors insurance
beneficiary shall receive an increase in his or her monthly
survivors annuity of 3%. On each January 1 after the initial
increase, the monthly survivors annuity shall be increased by
3% of the total survivors annuity provided under this
Article, including previous increases provided by this
subsection. Such increases shall apply to the survivors
insurance beneficiaries of each participant and annuitant,
whether or not the employment status of the participant or
annuitant terminates before the effective date of this
amendatory Act of 1990.
(k) If the Internal Revenue Code of 1986, as amended,
requires that the survivors benefits be payable at an age
earlier than that specified in this Section the benefits
shall begin at the earlier age, in which event, the
survivor's beneficiary shall be entitled only to that amount
which is equal to the actuarial equivalent of the benefits
provided by this Section.
(l) The changes made to this Section and Section 15-131
by this amendatory Act of 1997, relating to benefits for
certain unmarried children who are full-time students under
age 22, apply without regard to whether the deceased member
was in service on or after the effective date of this
amendatory Act of 1997. These changes do not authorize the
repayment of a refund or a re-election of benefits, and any
benefit or increase in benefits resulting from these changes
is not payable retroactively for any period before the
effective date of this amendatory Act of 1997.
(Source: P.A. 90-448, eff. 8-16-97; revised 2-24-98.)
(40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
Sec. 15-146. Survivors insurance benefits - Minimum
amounts.
(a) The minimum total survivors annuity payable on
account of the death of a participant shall be 50% of the
retirement annuity which would have been provided under Rule
1, Rule 2, or Rule 3 of Section 15-136 upon the participant's
attainment of the minimum age at which the penalty for early
retirement would not be applicable or the date of the
participant's death, whichever is later, on the basis of
credits earned prior to the time of death.
(b) The minimum total survivors annuity payable on
account of the death of an annuitant shall be 50% of the
retirement annuity which is payable under Section 15-136 at
the time of death or 50% of the disability retirement annuity
payable under Section 15-153.2. This minimum survivors
annuity shall apply to each participant and annuitant who
dies after September 16, 1979, whether or not his or her
employee status terminates before or after that date.
(c) If an annuitant has elected a reversionary annuity,
the retirement annuity referred to in this Section is that
which would have been payable had such election not been
filed.
(d) If a participant has made the election provided for
under Section 15-154(a-1), the minimum survivor benefit shall
be determined under Section 15-136.4.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/15-150) (from Ch. 108 1/2, par. 15-150)
Sec. 15-150. Disability benefits - Eligibility. A
participant may be granted is entitled to a disability
benefit if: (1) while a participating employee, he or she
becomes physically or mentally incapacitated and unable to
perform the duties of his or her assigned position for any
period exceeding 60 days; and (2) the employee had completed
2 years of service at the time of disability, unless the
disability is a result of an accident.
An employee shall be considered disabled only during the
period for which the board determines, based upon the
evidence listed below, has received (1) a written certificate
by at least 2 licensed and practicing physicians appointed by
the board stating that the employee is disabled and unable to
reasonably perform the duties of his or her assigned position
as a result of a physical or mental disability. This
determination shall be based upon:
(i) a written certificate from one or more licensed
and practicing physicians appointed by or acceptable to
the board, stating that the employee is disabled and
unable to reasonably perform the duties of his or her
assigned position;
(ii) and (2) a written certificate from by the
employer stating that the employee is unable to perform
the duties of his or her assigned that position; and
(iii) any other medical examinations, hospital
records, laboratory results, or other information
necessary for determining the employment capacity and
condition of the employee.
The board shall prescribe rules governing the filing,
investigation, control, and supervision of disability claims.
Costs incurred by a claimant in connection with completing a
claim for disability benefits shall be paid (A) by the
claimant, in the case of the one required medical
examination, medical certificate, and employer's certificate
and any other requirements generally imposed by the board on
all disability benefit claimants; and (B) by the System, in
the case of any additional medical examination or other
additional requirement imposed on a particular claimant that
is not imposed generally on all disability benefit claimants.
Pregnancy and childbirth shall be considered a
disability.
(Source: P.A. 84-1028.)
(40 ILCS 5/15-153.2) (from Ch. 108 1/2, par. 15-153.2)
Sec. 15-153.2. Disability retirement annuity. A
participant whose disability benefits are discontinued under
the provisions of clause (6) of Section 15-152 and who is not
a participant in the optional retirement plan established
under Section 15-158.2, is entitled to a disability
retirement annuity of 35% of the basic compensation which was
payable to the participant at the time that disability began,
provided that at least 2 licensed and practicing physicians
appointed by the board determines certify that the
participant has a medically determinable physical or mental
impairment that prevents which would prevent him or her from
engaging in any substantial gainful activity, and which can
be expected to result in death or which has lasted or can be
expected to last for a continuous period of not less than 12
months.
The board's determination of whether a participant is
disabled shall be based upon:
(i) a written certificate from one or more licensed
and practicing physicians appointed by or acceptable to
the board, stating that the participant is unable to
engage in any substantial gainful activity; and
(ii) any other medical examinations, hospital
records, laboratory results, or other information
necessary for determining the employment capacity and
condition of the participant.
The terms "medically determinable physical or mental
impairment" and "substantial gainful activity" shall have the
meanings ascribed to them in the federal "Social Security
Act", as now or hereafter amended, and the regulations issued
thereunder.
The disability retirement annuity payment period shall
begin immediately following the expiration of the disability
benefit payments under clause (6) of Section 15-152 and shall
be discontinued when (1) the physical or mental impairment no
longer prevents the participant from engaging in any
substantial gainful activity, (2) the participant dies or (3)
the participant elects to receive a retirement annuity under
Sections 15-135 and 15-136. If a person's disability
retirement annuity is discontinued under clause (1), all
rights and credits accrued in the system on the date that the
disability retirement annuity began shall be restored, and
the disability retirement annuity paid shall be considered as
disability payments under clause (6) of Section 15-152.
(Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-511,
eff. 8-22-97.)
(40 ILCS 5/15-153.3) (from Ch. 108 1/2, par. 15-153.3)
Sec. 15-153.3. Automatic increase in disability benefit.
Each disability benefit payable under Section 15-150 and
calculated under Section 15-153 or 15-153.2 shall be
increased by 7% of the original fixed amount of such benefit
on January 1, 1991 or January 1 on or next following the
fourth anniversary of the granting of the benefit, whichever
occurs later. On each January 1 following the 7% increase,
the disability benefit shall be increased by 3% of the
current amount of the benefit, including prior increases
under this Article.
(Source: P.A. 86-1488.)
(40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
Sec. 15-154. Refunds.
(a) A participant whose status as an employee is
terminated, regardless of cause, or who has been on lay off
status for more than 120 days, and who is not on leave of
absence, is entitled to a refund of contributions upon
application; except that not more than one such refund
application may be made during any academic year.
Except as set forth in subsections (a-1) and (a-2), the
refund shall be the sum of the accumulated normal, additional
and survivors insurance contributions, less the amount of
interest credited on these contributions each year in excess
of 4 1/2% of the amount on which interest was calculated.
(a-1) A person who elects, in accordance with the
requirements of Section 15-134.5, to participate in the
portable benefit package and who becomes a participating
employee under that retirement program upon the conclusion of
the one-year waiting period applicable to the portable
benefit package election shall have his or her refund
calculated in accordance with the provisions of subsection
(a-2).
(a-1) Every person who becomes an eligible employee as
described in Section 15-158.2 after the date on which his or
her employer first offers an optional retirement program
under Section 15-158.2 may elect within 60 days of becoming a
participant to have any refund calculated pursuant to
subsection (a-2) by forgoing all survivors insurance benefits
to which the person's survivors would otherwise be entitled
under this Article. This election is irrevocable and may be
made by filing an election with the system on such form as
the Executive Director shall prescribe.
Each person who is an eligible employee as described in
Section 15-158.2 on the date on which his or her employer
first offers an optional retirement program under Section
15-158.2 shall have a one-time option to elect to have his or
her refund calculated pursuant to subsection (a-2), by
forgoing all survivors insurance benefits to which the
person's survivors would otherwise be entitled under this
Article. The election will not be effective until one year
after the election is filed with the system. This election
is irrevocable and may be made by filing an election with the
system, on such form as the Executive Director shall
prescribe, within one year after the date on which his or her
employer first offers an optional retirement program under
Section 15-158.2.
A person may make the one-time irrevocable election
authorized under this Section or the election authorized
under Section 15-158.2(g), but may not make both elections.
Any person interested in electing the portable retirement
benefit program provided under this Section and Section
15-136.4 must be given a consultation with the State
Universities Retirement System before making that election.
(a-2) The refund payable to a participant described in
elected under subsection (a-1) shall be the sum of the
participant's accumulated normal and additional
contributions, as defined in Sections 15-116 and 15-117. If
the participant terminates with 5 or more years of service
for employment as defined in Section 15-113.1, he or she
shall also be entitled to a distribution refund of employer
contributions in an amount equal to the sum of the
accumulated normal and additional contributions, as defined
in Sections 15-116 and 15-117.
(b) Upon acceptance of a refund, the participant
forfeits all accrued rights and credits in the System, and if
subsequently reemployed, the participant shall be considered
a new employee subject to all the qualifying conditions for
participation and eligibility for benefits applicable to new
employees. If such person again becomes a participating
employee and continues as such for 2 years, or is employed by
an employer and participates for at least 2 years in the
Federal Civil Service Retirement System, all such rights,
credits, and previous status as a participant shall be
restored upon repayment of the amount of the refund, together
with compound interest thereon from the date the refund was
received to the date of repayment at the rate of 6% per annum
through August 31, 1982, and at the effective rates after
that date.
(c) If a participant covered under the transitional
benefit package has made survivors insurance contributions,
but has no survivors insurance beneficiary upon retirement,
he or she shall be entitled to a refund of the accumulated
survivors insurance contributions, or to an additional
annuity the value of which is equal to the accumulated
survivors insurance contributions.
(d) A participant, upon application, is entitled to a
refund of his or her accumulated additional contributions
attributable to the additional contributions described in the
last sentence of subsection (c) of Section 15-157 except
those covering the cost of the annual increase in the
retirement annuity provided under Section 15-136. Upon the
acceptance of such a refund of accumulated additional
contributions, the participant forfeits all rights and
credits which may have accrued because of such contributions.
(e) A participant who terminates his or her employee
status and elects to waive service credit under Section
15-154.2, is entitled to a refund of the accumulated normal,
additional and survivors insurance contributions, if any,
which were credited the participant for this service, or to
an additional annuity the value of which is equal to the
accumulated normal, additional and survivors insurance
contributions, if any; except that not more than one such
refund application may be made during any academic year. Upon
acceptance of this refund, the participant forfeits all
rights and credits accrued because of this service.
(f) If a police officer or firefighter receives a
retirement annuity under Rule 1, 2, or 3 of Section 15-136,
he or she shall be entitled at retirement to a refund of the
difference between his or her accumulated normal
contributions and the normal contributions which would have
accumulated had such person filed a waiver of the retirement
formula provided by Rule 4 of Section 15-136.
(g) If, at the time of retirement, a participant would
be entitled to a retirement annuity under Rule 1, 2, 3 or 4
of Section 15-136 that exceeds the maximum specified in
clause (1) of subsection (c) of Section 15-136, he or she
shall be entitled to a refund of the employee contributions,
if any, paid under Section 15-157 after the date upon which
continuance of such contributions would have otherwise caused
the retirement annuity to exceed this maximum, plus compound
interest at the effective rates.
(Source: P.A. 90-448, eff. 8-16-97; 90-576, eff. 3-31-98.)
(40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
Sec. 15-157. Employee Contributions.
(a) Each participating employee shall make contributions
towards the retirement benefits payable under the retirement
program applicable to the employee from annuity of each
payment of earnings applicable to employment under this
system on and after the date of becoming a participant as
follows: Prior to September 1, 1949, 3 1/2% of earnings;
from September 1, 1949 to August 31, 1955, 5%; from September
1, 1955 to August 31, 1969, 6%; from September 1, 1969, 6
1/2%. These contributions are to be considered as normal
contributions for purposes of this Article.
Each participant who is a police officer or firefighter
shall make normal contributions of 8% of each payment of
earnings applicable to employment as a police officer or
firefighter under this system on or after September 1, 1981,
unless he or she files with the board within 60 days after
the effective date of this amendatory Act of 1991 or 60 days
after the board receives notice that he or she is employed as
a police officer or firefighter, whichever is later, a
written notice waiving the retirement formula provided by
Rule 4 of Section 15-136. This waiver shall be irrevocable.
If a participant had met the conditions set forth in Section
15-132.1 prior to the effective date of this amendatory Act
of 1991 but failed to make the additional normal
contributions required by this paragraph, he or she may elect
to pay the additional contributions plus compound interest at
the effective rate. If such payment is received by the
board, the service shall be considered as police officer
service in calculating the retirement annuity under Rule 4 of
Section 15-136. While performing service described in clause
(i) or (ii) of Rule 4 of Section 15-136, a participating
employee shall be deemed to be employed as a firefighter for
the purpose of determining the rate of employee contributions
under this Section.
(b) Starting September 1, 1969, each participating
employee shall make additional contributions of 1/2 of 1% of
earnings to finance a portion of the cost of the annual
increases in retirement annuity provided under Section
15-136, except that with respect to participants in the
self-managed plan this additional contribution shall be used
to finance the benefits obtained under that retirement
program.
(c) In addition to the amounts described in subsections
(a) and (b) of this Section, each participating employee
shall make additional contributions of 1% of earnings
applicable under this system on and after August 1, 1959.
The contributions contribution made under this subsection (c)
shall be considered as survivor's insurance contributions for
purposes of this Article if the employee is covered under the
traditional benefit package, and such contributions shall be
considered as additional contributions for purposes of this
Article if the employee is participating in the self-managed
plan or has elected to participate in the portable benefit
package and has completed the applicable one-year waiting
period shall be used to finance survivors insurance benefits,
unless the participant has made an election under Section
15-154(a-1), in which case the contribution made under this
subsection shall be used to finance the benefits obtained
under that election. Contributions in excess of $80 during
any fiscal year beginning before August 31, 1969 and in
excess of $120 during any fiscal year thereafter until
September 1, 1971 shall be considered as additional
contributions for purposes of this Article.
(d) If the board by board rule so permits and subject to
such conditions and limitations as may be specified in its
rules, a participant may make other additional contributions
of such percentage of earnings or amounts as the participant
shall elect in a written notice thereof received by the
board.
(e) That fraction of a participant's total accumulated
normal contributions, the numerator of which is equal to the
number of years of service in excess of that which is
required to qualify for the maximum retirement annuity, and
the denominator of which is equal to the total service of the
participant, shall be considered as accumulated additional
contributions. The determination of the applicable maximum
annuity and the adjustment in contributions required by this
provision shall be made as of the date of the participant's
retirement.
(f) Notwithstanding the foregoing, a participating
employee shall not be required to make contributions under
this Section after the date upon which continuance of such
contributions would otherwise cause his or her retirement
annuity to exceed the maximum retirement annuity as specified
in clause (1) of subsection (c) of Section 15-136.
(g) A participating employee may make contributions for
the purchase of service credit under this Article.
(Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97;
90-448, eff. 8-16-97; 90-511, eff. 8-22-97; 90-576, eff.
3-31-98.)
(40 ILCS 5/15-158.2)
Sec. 15-158.2. Self-managed plan Optional retirement
program for educational employees.
(a) Purpose. The General Assembly finds that it is
important for colleges and universities to be able to attract
and retain the most qualified employees and that in order to
attract and retain these employees, colleges and universities
should have the flexibility to provide a defined contribution
plan as an alternative retirement program for eligible
employees who elect not to participate in a defined benefit
the other retirement program programs provided under this
Article. Accordingly, the State Universities Retirement
System is hereby authorized to establish and administer a
self-managed plan, which shall offer participating employees
the opportunity to accumulate assets for retirement through a
combination of employee and employer contributions that may
be invested in mutual funds, collective investment funds, or
other investment products and used to purchase annuity
contracts, either fixed or variable or a combination thereof.
The plan must be qualified under the Internal Revenue Code of
1986.
(b) Definitions. For the purposes of this Section,
"eligible employee" means an employee (other than an employee
performing service described in clause (i) or (ii) of Rule 4
of Section 15-136) who is eligible to participate in the
State Universities Retirement System and who does not have
sufficient age and service to qualify for a retirement
annuity under Section 15-135. A "currently eligible
employee" is an employee who becomes an eligible employee on
the effective date of the optional retirement program
established by the employee's employer. A "newly eligible
employee" is an employee who becomes an eligible employee
after the effective date of the optional retirement program
established by the employee's employer.
(b) Adoption by employers. (c) Program. Each employer
subject to this Article may elect to adopt the self-managed
plan established establish an optional retirement program
under this Section; this election is irrevocable. An
employer's election to adopt the self-managed plan makes
available to the eligible employees of that employer the
elections described in Section 15-134.5. for the eligible
employees whom it employs. The optional retirement program
shall provide retirement benefits for participating employees
through the purchase of annuity contracts, either fixed or
variable or a combination thereof, through the purchase of
mutual funds, or through both and shall also provide for
disability benefits.
The State Universities Retirement System shall be the
plan sponsor for the self-managed plan and shall prepare a
plan document and prescribe such rules and procedures as are
considered necessary or desirable for the administration of
the self-managed plan program. Consistent with its fiduciary
duty to the participants and beneficiaries of the
self-managed plan program, the Board of Trustees of the
System may delegate aspects of plan program administration as
it sees fit to companies authorized to do business in this
State, to the employers, or to a combination of both.
The plan must be qualified under the Internal Revenue
Code of 1986.
(c) Selection of service providers and funding vehicles.
(d) Proposals. The System, in consultation with the
employers, shall solicit proposals to provide administrative
services and funding vehicles for the self-managed plan
participate in the program from insurance and annuity
companies and mutual fund companies, banks, trust companies,
or other financial institutions authorized to do business in
this State. In reviewing the proposals received and
approving and contracting with no fewer than 2 and no more
than 7 companies, at least 2 of which must be insurance and
annuity companies, the Board of Trustees of the System shall
consider, among other things, the following criteria:
(1) the nature and extent of the benefits that
would be provided to the participants;
(2) the reasonableness of the benefits in relation
to the premium charged;
(3) the suitability of the benefits to the needs
and interests of the participating employees and the
employer;
(4) the ability of the company to provide benefits
under the contract and the financial stability of the
company; and
(5) the efficacy of the contract in the recruitment
and retention of employees.
An employer that elects to offer an optional retirement
program under subsection (c) may only select for
participation in the program 2 or more of the companies
approved by the Board of Trustees of the System. The System,
in consultation with the employers, shall periodically review
each approved company.; A company may continue to provide
administrative services and funding vehicles for the
self-managed plan participate in the program only so long as
it continues to be an approved company under contract with
the Board.
(d) Employee Direction. Employees who are participating
in the program must be allowed to direct the transfer of
their account balances among the various investment options
offered, subject to applicable contractual provisions. The
participant shall not be deemed a fiduciary by reason of
providing such investment direction. A person who is a
fiduciary shall not be liable for any loss resulting from
such investment direction and shall not be deemed to have
breached any fiduciary duty by acting in accordance with that
direction. Neither the System nor the employer guarantees
any of the investments in the employee's account balances.
(e) Participation. An employee eligible to participate
in the self-managed plan must make a written election in
accordance with the provisions of Section 15-134.5 and the
procedures established by the System. Participation in the
self-managed plan by an electing employee shall begin on the
first day of the first pay period following the later of the
date the employee's election is filed with the System or the
effective date as of which the employee's employer begins to
offer participation in the self-managed plan. Employers may
not make the self-managed plan available earlier than January
1, 1998. An employee's participation in any other retirement
program administered by the System under this Article shall
terminate on the date that participation in the self-managed
plan begins.
An employee who has elected to participate in the
self-managed plan under this Section must continue
participation while employed in an eligible position, and may
not participate in any other retirement program administered
by the System under this Article while employed by that
employer or any other employer that has adopted the
self-managed plan, unless the self-managed plan is terminated
in accordance with subsection (i).
Participation in the self-managed plan under this Section
shall constitute membership in the State Universities
Retirement System.
A participant under this Section shall be entitled to the
benefits of Article 20 of this Code modified to reflect the
following principles:
(1) The amount of any retirement annuities payable
under this Section depend solely on the value of the
participant's vested account balances and are not subject
to a maximum annuity benefit limitation or any adjustment
pursuant to the proportional retirement annuity
provisions of Article 20. If a participant in the
self-managed plan under this Section elects to apply the
provisions of Article 20, the dollar amount of the
proportional retirement annuity payable from the System
shall be deemed to be zero and the provisions of the
second paragraph of Section 20-131 shall not apply with
respect to the retirement annuity benefits payable to the
participant under this Section.
(2) For purposes of Section 20-123 of this Code,
the self-managed plan shall be treated as if it were
provided by a participating system that has no survivor's
annuity benefit.
(3) Notwithstanding Section 20-125 of this Code,
upon reemployment by a participating system of a retired
participant in the self-managed plan, the retirement
annuity payment made to such participant from any annuity
contracts acquired from the participant's self-managed
plan account balances shall not be suspended.
(f) Establishment of Initial Account Balance. If at the
time an employee elects to participate in the self-managed
plan he or she has rights and credits in the System due to
previous participation in the traditional benefit package,
the System shall establish for the employee an opening
account balance in the self-managed plan, equal to the amount
of contribution refund that the employee would be eligible to
receive under Section 15-154 if the employee terminated
employment on that date and elected a refund of
contributions, except that this hypothetical refund shall
include interest at the effective rate for the respective
years. The System shall transfer assets from the defined
benefit retirement program to the self-managed plan, as a tax
free transfer in accordance with Internal Revenue Service
guidelines, for purposes of funding the employee's opening
account balance.
(g) No Duplication of Service Credit. Notwithstanding
any other provision of this Article, an employee may not
purchase or receive service or service credit applicable to
any other retirement program administered by the System under
this Article for any period during which the employee was a
participant in the self-managed plan established under this
Section.
(e) System Conflict of Interest. In order to preclude
any conflict of interest by the System, only insurance and
annuity companies and mutual fund companies that are
authorized to do business in this State may be approved, in
accordance with the procedures of subsection (d), to
participate in this program and offer investment options for
program participants.
(f) Account Balance Transfers. Employees who are
participating in the program must be allowed to transfer
their account balances from the investment options offered by
one of the companies selected by the employer to the
investment options offered by another company so selected,
subject to applicable contractual provisions.
(g) Participation. Any eligible employee may elect to
participate in the optional retirement program offered by the
employer under subsection (c). The election must be made in
writing and in the manner prescribed by the System. A
currently eligible employee must make this election within
one year after the effective date of the employer's optional
retirement program. A newly eligible employee must make this
election within 60 days after becoming an eligible employee.
A person may make the one-time irrevocable election
authorized under this Section or the election authorized
under Section 15-154(a-1), but may not make both elections.
The employer shall not remit contributions on behalf of a
newly eligible employee to the State Universities Retirement
System until the 60-day period has run unless an election by
the employee has been made earlier. Any eligible employee
interested in electing the optional retirement program
provided under this Section must be given a consultation with
the State Universities Retirement System before making that
election.
Participation in the optional retirement program shall
begin on the first day of the first pay period following the
date of election, but no earlier than January 1, 1998. The
employee's participation in any other retirement program
administered by the System under this Article shall terminate
on the date that participation in the optional retirement
program begins, and the employee shall thereby be deemed to
have elected to receive a refund of contributions as provided
in Section 15-154, except that such deemed refund shall
include interest at the effective rate for the respective
years, and except that any funds which would have been
received shall instead be transferred directly to the
optional retirement program as a tax free transfer in
accordance with Internal Revenue Service guidelines.
Notwithstanding any other provision of this Code, an
employee may not purchase or receive service or service
credit applicable to any other retirement program
administered by the System under this Article for any period
during which the employee was a participant in the optional
retirement program established under this Section.
An employee who has elected to participate in the
optional retirement program under this Section must continue
participation while employed in an eligible position, and may
not participate in any other retirement program administered
by the System under this Article while employed by that
employer, unless the optional retirement program is
terminated in accordance with subsection (i).
Participation in the optional retirement program under
this Section shall constitute membership in the State
Universities Retirement System, although a participant under
this Section shall not be entitled to receive any benefits
under any other provisions of Article 15 or of Article 20.
An employee who receives a disability benefit or a retirement
benefit under this Section or an employee who receives a lump
sum distribution from a mutual fund company under this
Section and uses the lump sum to purchase an annuity shall be
considered an employee or an annuitant under Article 15 for
purposes of the State Employees Group Insurance Act of 1971.
Participation in the optional retirement program under this
Section creates a contractual relationship with respect to
the investment of the employee's account balance between the
employee and the company providing the investment options for
the employee's account balance. Participation does not
create a contractual relationship between the employee and
the System or between the employee and his or her employer.
(h) Contributions. The self-managed plan shall be funded
by contributions from employees participating in the
self-managed plan and employer contributions as provided in
this Section.
The contribution rate for employees participating in the
self-managed plan optional retirement program under this
Section shall be equal to the employee contribution rate for
other participants in the System, as provided in Section
15-157. This required contribution shall may be made as an
"employer pick-up" under Section 414(h) of the Internal
Revenue Code of 1986 or any successor Section thereof. Any
employee participating in the System's traditional benefit
package prior to his or her election System or who elects to
participate in the self-managed plan optional retirement
program shall continue to have the employer pick up "pick-up"
the contributions required under Section 15-157 contribution.
However, the amounts picked up after the election of the
self-managed plan optional retirement program shall be
remitted to and treated as assets of the self-managed the
optional retirement plan. In no event shall an employee have
an option of receiving these amounts in cash. Employees may
make additional contributions to the self-managed plan in
accordance with procedures prescribed by the System, to the
extent permitted under rules prescribed by the System.
The program shall provide for employer contributions to
be credited to each self-managed plan participant at a rate
of no more than 7.6% of the participating employee's salary,
less the amount used by the System to provide disability
benefits for the employee. The amounts so credited shall be
paid into the participant's self-managed plan accounts in a
manner to be prescribed by the System.
An amount of employer contribution, not exceeding 1% of
the participating employee's salary, shall be used for the
purpose of providing the disability benefits of the System to
the employee. Prior to the beginning of each plan year under
the self-managed plan, the Board of Trustees shall determine,
as a percentage of salary, the amount of employer
contributions to be allocated during that plan year for
providing disability benefits for employees in the
self-managed plan. The optional retirement program shall be
funded by contributions from employees participating in the
program and employer contributions as required by the plan.
The plan shall be funded in a manner consistent with the
requirements of Internal Revenue Code Section 412, and
regulations promulgated thereunder, as that Section applies
to money purchase plans.
The State of Illinois shall make contributions by
appropriations to the System of the employer contributions
required for employees who participate in the self-managed
plan optional retirement program under this Section. The
amount required shall be certified by the Board of Trustees
of the System and paid by the State in accordance with
Section 15-165. The System shall not be obligated to remit
the required employer contributions to any of the insurance
and annuity companies, and mutual fund companies, banks,
trust companies, financial institutions, or other sponsors of
any of the funding vehicles offered under the self-managed
plan participating in the optional retirement program under
subsection (d) until it has received the required employer
contributions from the State. In the event of a deficiency
in the amount of State contributions, the System shall
implement those procedures described in subsection (c) of
Section 15-165 to obtain the required funding from the
General Revenue Fund.
The contributions and interest thereon, and any benefits
based upon them, shall be treated as provided in the funding
vehicles for this plan. An amount of up to 1% of each
participating employee's salary shall be taken from the
employer contribution to the optional retirement program and
shall be contributed, on the employee's behalf, to a plan
which the System offers to provide for disability benefits.
(i) Termination. The self-managed plan An optional
retirement program authorized under this Section may be
terminated by the System employer, subject to the terms of
any relevant contracts, and the System employer shall have no
obligation to reestablish the self-managed plan an optional
retirement program under this Section. This Section does not
create a right to continued participation in any self-managed
plan optional retirement program set up by the System an
employer under this Section. If the self-managed plan an
optional retirement program is terminated, the participants
shall have the right to participate in one of the other
retirement programs offered by the System and receive service
credit in such other retirement program for any years of
employment following the termination.
(j) Vesting; Withdrawal; Return to Service. A
participant in the self-managed plan becomes vested in the
employer contributions credited to his or her accounts in the
self-managed plan on the earliest to occur of the following:
(1) completion of 5 years of service with an employer
described in Section 15-106; (2) the death of the
participating employee while employed by an employer
described in Section 15-106, if the participant has completed
at least 1 1/2 years of service; or (3) the participant's
election to retire and apply the reciprocal provisions of
Article 20 of this Code.
A participant in the self-managed plan who receives a
distribution of his or her vested amounts from the
self-managed plan upon or after termination of employment
shall forfeit all service credit and accrued rights in the
System; if subsequently re-employed, the participant shall be
considered a new employee. If a former participant again
becomes a participating employee (or becomes employed by a
participating system under Article 20 of this Code) and
continues as such for at least 2 years, all such rights,
service credits, and previous status as a participant shall
be restored upon repayment of the amount of the distribution,
without interest. Employer contributions shall be vested
after five years of employment.
(k) Benefit amounts. If an employee who is vested in
employer contributions terminates employment prior to
completing five years of service, the employee shall be
entitled to a benefit in accordance with the terms of the
employer's retirement plan which is based on the account
values accumulation value attributable to both employer and
employee the employee's contributions and any investment
return thereon.
If an employee who is not vested in employer
contributions terminates employment, the employee shall be
entitled to a benefit based solely on the account values
Benefits for employees who terminate with at least five years
of service shall be in accordance with the terms of the
optional retirement plan and based on the accumulation value
attributable to both the employer and the employee's
contributions and any investment return thereon, and the
employer contributions and any investment return thereon
shall be forfeited. Any employer contributions which are
forfeited shall be held in escrow by the company investing
those contributions and shall be used as directed by the
System for future allocations of to reduce the next premium
payment due from the employer contributions or for the
restoration of amounts previously forfeited by former
participants who again become participating employees.
(Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
90-576, eff. 3-31-98.)
(40 ILCS 5/15-158.3)
Sec. 15-158.3. Reports on cost reduction; effect on
retirement at any age with 30 years of service.
(a) On or before November 15, 2001 and on or before
November 15th of each year thereafter, the Board shall have
the System's actuary prepare a report showing, on a fiscal
year by fiscal year basis, the actual rate of participation
in the self-managed plan optional retirement program
authorized by Section 15-158.2, (i) by employees of the
System's covered higher educational institutions who were
hired on or after the implementation date of the self-managed
plan optional retirement program and (ii) by other System
participants.
The actuary's report must also quantify the extent to
which employee optional retirement plan participation has
reduced the State's required contributions to the System,
expressed both in dollars and as a percentage of covered
payroll, in relation to what the State's contributions to the
System would have been (1) if the self-managed plan optional
retirement program had not been implemented, and (2) if 45%
of employees of the System's covered higher educational
institutions who were hired on or after the implementation
date of the self-managed plan optional retirement program had
elected to participate in the self-managed plan optional
retirement program and 10% of other System participants had
transferred to the self-managed plan optional retirement
program following its implementation.
(b) On or before November 15th of 2001 and on or before
November 15th of each year thereafter, the Illinois Board of
Higher Education, in conjunction with the Bureau of the
Budget, shall prepare a report showing, on a fiscal year by
fiscal year basis, the amount by which the costs associated
with compensable sick leave have been reduced as a result of
the termination of compensable sick leave accrual on and
after January 1, 1998 by employees of higher education
institutions who are participants in the System.
(c) On or before November 15 of 2001 and on or before
November 15th of each year thereafter, the Department of
Central Management Services shall prepare a report showing,
on a fiscal year by fiscal year basis, the amount by which
the State's cost for health insurance coverage under the
State Employees Group Insurance Act of 1971 for retirees of
the State's universities and their survivors has declined as
a result of requiring some of those retirees and survivors to
contribute to the cost of their basic health insurance.
These year-by-year reductions in cost must be quantified both
in dollars and as a level percentage of payroll covered by
the System.
(d) The reports required under subsections (a), (b), and
(c) shall be disseminated to the Board, the Pension Laws
Commission, the Illinois Economic and Fiscal Commission, the
Illinois Board of Higher Education, and the Governor.
(e) The reports required under subsections (a), (b), and
(c) shall be taken into account by the Pension Laws
Commission in making any recommendation to extend by
legislation beyond December 31, 2002 the provision that
allows a System participant to retire at any age with 30 or
more years of service as authorized in Section 15-135. If
that provision is extended beyond December 31, 2002, and if
the most recent report under subsection (a) indicates that
actual State contributions to the System for the period
during which the self-managed plan optional retirement
program has been in operation have exceeded the projected
State contributions under the assumptions in clause (2) of
subsection (a), then any extension of the provision beyond
December 31, 2002 must require that the System's higher
educational institutions and agencies cover any funding
deficiency through an annual payment to the System out of
appropriate resources of their own.
(Source: P.A. 90-9, eff. 7-1-97.)
(40 ILCS 5/15-165) (from Ch. 108 1/2, par. 15-165)
Sec. 15-165. To certify amounts and submit vouchers.
(a) The Board shall certify to the Governor on or before
November 15 of each year the appropriation required from
State funds for the purposes of this System for the following
fiscal year. The certification shall include a copy of the
actuarial recommendations upon which it is based.
(b) The Board shall certify to the State Comptroller or
employer, as the case may be, from time to time, by its
president and secretary, with its seal attached, the amounts
payable to the System from the various funds.
(c) Beginning in State fiscal year 1996, on or as soon
as possible after the 15th day of each month the Board shall
submit vouchers for payment of State contributions to the
System, in a total monthly amount of one-twelfth of the
required annual State contribution certified under subsection
(a). These vouchers shall be paid by the State Comptroller
and Treasurer by warrants drawn on the funds appropriated to
the System for that fiscal year.
If in any month the amount remaining unexpended from all
other appropriations to the System for the applicable fiscal
year (including the appropriations to the System under
Section 8.12 of the State Finance Act and Section 1 of the
State Pension Funds Continuing Appropriation Act) is less
than the amount lawfully vouchered under this Section, the
difference shall be paid from the General Revenue Fund under
the continuing appropriation authority provided in Section
1.1 of the State Pension Funds Continuing Appropriation Act.
(d) So long as the payments received are the full amount
lawfully vouchered under this Section, payments received by
the System under this Section shall be applied first toward
the employer contribution to the self-managed plan optional
retirement program established under Section 15-158.2.
Payments shall be applied second toward the employer's
portion of the normal costs of the System, as defined in
subsection (f) of Section 15-155. The balance shall be
applied toward the unfunded actuarial liabilities of the
System.
(e) In the event that the System does not receive, as a
result of legislative enactment or otherwise, payments
sufficient to fully fund the employer contribution to the
self-managed plan optional retirement program established
under Section 15-158.2 and to fully fund that portion of the
employer's portion of the normal costs of the System, as
calculated in accordance with Section 15-155(a-1), then any
payments received shall be applied proportionately to the
optional retirement program established under Section
15-158.2 and to the employer's portion of the normal costs of
the System, as calculated in accordance with Section
15-155(a-1).
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/15-167) (from Ch. 108 1/2, par. 15-167)
Sec. 15-167. To invest money. To invest the funds of
the system, subject to the requirements and restrictions set
forth in Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111,
1-114, and 1-115, and 15-158.2(d) of this Code and to invest
in real estate acquired by purchase, gift, condemnation or
otherwise, and any office building or buildings existing or
to be constructed thereon, including any additions thereto or
expansions thereof, for the use of the system. The board may
lease surplus space in any of the buildings and use rental
proceeds for operation, maintenance, improving, expanding and
furnishing of the buildings or for any other lawful system
purpose.
No bank or savings and loan association shall receive
investment funds as permitted by this Section, unless it has
complied with the requirements established pursuant to
Section 6 of "An Act relating to certain investments of
public funds by public agencies", approved July 23, 1943, as
now or hereafter amended. The limitations set forth in such
Section 6 shall be applicable only at the time of investment
and shall not require the liquidation of any investment at
any time.
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.
All investments shall be clearly held and accounted for
to indicate ownership by the board. The 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 value
determined in accordance with generally accepted accounting
principles and accounting procedures approved by the Board.
All additions to assets from income, interest, and
dividends from investments shall be used to pay benefits,
operating and administrative expenses of the system, debt
service, including any redemption premium, on any bonds
issued by the board, expenses incurred or deposits required
in connection with such bonds, and such other costs as may be
provided in accordance with this Article.
(Source: P.A. 90-19, eff. 6-20-97.)
(40 ILCS 5/18-129) (from Ch. 108 1/2, par. 18-129)
Sec. 18-129. Refund of contributions; repayment.
(a) A participant who ceases to be a judge may, upon
application to the Board, receive a refund of his or her
total contributions to the System including the contributions
made towards the automatic increase in retirement annuity and
contributions for the survivor's annuity, without interest,
provided he or she is not then immediately eligible to
receive a retirement annuity.
Upon receipt of a refund, the applicant shall cease to be
a participant and shall thereupon relinquish all rights in
the System. However, upon again becoming a participant, the
judge shall receive credit for all previous judicial service
upon payment to the System of the amount refunded together
with interest at 4% per annum from the time of the refund to
the date of repayment.
(b) Upon death of a participant who did not become an
annuitant, where no spouse or other beneficiaries eligible
for an annuity survive, the participant's designated
beneficiary or estate shall be entitled to a refund of his or
her total contributions to the System, including
contributions made towards the automatic increase in
retirement annuity and contributions for the survivor's
annuity, without interest.
(c) Upon death of an annuitant, where no spouse or other
beneficiaries eligible for an annuity survive, the designated
beneficiary or estate shall receive a refund of the
contributions made for the survivor's annuity, without
interest. If the annuitant received annuity payments in the
aggregate less than his or her contributions for retirement
annuity and the contributions towards the automatic increase
in the retirement annuity, the designated beneficiary or
estate shall also be refunded the difference between the
total of such contributions, excluding interest, and the sum
of annuity payments made.
(d) A participant or annuitant whose marriage is
terminated by death or dissolution, an unmarried participant,
and an annuitant who was not married while he or she was a
judge, shall, upon application to the Board, receive a refund
of his or her contributions for the survivor's annuity,
without interest. Upon the issuance of a refund under this
subsection, the recipient's credit for survivor's annuity
purposes shall terminate and the recipient shall not
thereafter make contributions for survivor's annuity, except
in accordance with subsection (f) or (g). Upon the death of
a participant or annuitant who received such a refund, any
eligible children shall nevertheless be entitled to the
child's annuities provided in Section 18-128.01.
(e) Upon the death of a surviving spouse who, together
with the deceased judge, did not receive annuity payments in
the aggregate equal to the judge's total contributions to the
System, the estate of the surviving spouse shall be refunded
the difference between the total payments and total
contributions, excluding interest.
(f) Upon marriage or remarriage, a participant or
annuitant shall receive full credit for survivor's annuity
purposes upon:
(1) in the case of a participant, making the
contributions required under Section 18-123 beginning on
the date of the marriage or remarriage;
(2) repaying in full any survivor's annuity
contributions that have been refunded; and
(3) making survivor's annuity contributions for the
period of participation during which he or she was
unmarried, together with interest thereon at 3% per
annum.
The time and manner of making such repayments shall be
prescribed by the Board.
(g) Upon marriage or remarriage, a participant who does
not make the payments required for full survivor's annuity
credit under subsection (f) may receive partial credit for
survivor's annuity by making survivor's annuity contributions
under Section 18-123 beginning on the date of the marriage or
remarriage.
Notwithstanding any other provision of this Article, the
survivor's annuity (but not any child's annuity) payable
under this Article on behalf of a deceased person with only
partial credit for survivor's annuity shall be reduced by
multiplying the amount of the survivor's annuity that would
have been payable if the person had full credit by a
fraction, the numerator of which is the number of months of
service for which survivor's annuity contributions have been
credited in this System, and the denominator of which is the
total number of months of service in this System.
(Source: P.A. 86-273; 87-1265.)
(40 ILCS 5/18-133.1) (from Ch. 108 1/2, par. 18-133.1)
Sec. 18-133.1. Pickup of contributions.
(a) Each employer may pick up the participant
contributions required under Section 18-133 for all salary
earned after December 31, 1981. If an employer decides not
to pick up the contributions, the employee contributions
shall continue to be deducted from salary. If contributions
are picked up they shall be treated as employer contributions
in determining tax treatment under the United States Internal
Revenue Code. However, the employer shall continue to
withhold Federal and State income taxes based upon these
contributions until the Internal Revenue Service or the
Federal courts rule that pursuant to Section 414(h) of the
United States Internal Revenue Code, these contributions
shall not be included as gross income of the participant
until such time as they are distributed or made available.
The employer shall pay these participant contributions from
the same source of funds which is used in paying earnings to
the participant. The employer may pick up these
contributions by a reduction in the cash salary of the
participant 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 participant
contributions are picked up they shall be treated for all
purposes of this Article as participant contributions were
considered prior to the time they were picked up.
(b) Subject to the requirements of federal law, a
participant may elect to have the employer pick up optional
contributions that the participant has elected to pay to the
System, 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
participant and shall pay the contributions from the same
fund that is used to pay earnings to the participant. The
election to have optional contributions picked up is
irrevocable and the optional contributions may not thereafter
be prepaid, by direct payment or otherwise. If the provision
authorizing the optional contribution requires payment by a
stated date (rather than the date of withdrawal or
retirement), that requirement shall be deemed to have been
satisfied if (i) on or before the stated date the participant
executes a valid irrevocable election to have the
contributions picked up under this subsection, and (ii) the
picked-up contributions are in fact paid to the System as
provided in the election.
(Source: P.A. 90-448, eff. 8-16-97.)
Section 10. The State Mandates Act is amended by adding
Section 8.22 as follows:
(30 ILCS 805/8.22 new)
Sec. 8.22. 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 1998.
Section 99. Effective date. This Act takes effect upon
becoming law.