[ Home ] [ ILCS ] [ Search ] [ Bottom ]
[ Other General Assemblies ]
Public Act 91-0887
HB1583 Enrolled LRB9101658EGfg
AN ACT in relation to public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Employees Group Insurance Act of
1971 is amended by changing Section 6.10 as follows:
(5 ILCS 375/6.10)
Sec. 6.10. Contributions to the Community College Health
Insurance Security Fund.
(a) Beginning January 1, 1999, every active contributor
of the State Universities Retirement System (established
under Article 15 of the Illinois Pension Code) who (1) is a
full-time employee of a community college district (other
than a community college district subject to Article VII of
the Public Community College Act) or an association of
community college boards and (2) is not an employee as
defined in Section 3 of this Act shall make contributions
toward the cost of community college annuitant and survivor
health benefits at the rate of 0.50% of salary.
These contributions shall be deducted by the employer and
paid to the State Universities Retirement System as service
agent for the Department of Central Management Services. The
System may use the same processes for collecting the
contributions required by this subsection that it uses to
collect the contributions received from those employees under
Section 15-157 of the Illinois Pension Code. An employer may
agree to pick up or pay the contributions required under this
subsection on behalf of the employee; such contributions
shall be deemed to have been paid by the employee.
A person required to make contributions under this
subsection (a) who purchases optional service credit under
Article 15 of the Illinois Pension Code must also pay the
contribution required under this subsection (a) with respect
to that optional service credit. This contribution must be
received by the System before that optional service credit is
granted.
The State Universities Retirement System shall promptly
deposit all moneys collected under this subsection (a) into
the Community College Health Insurance Security Fund created
in Section 6.9 of this Act. The moneys collected under this
Section shall be used only for the purposes authorized in
Section 6.9 of this Act and shall not be considered to be
assets of the State Universities Retirement System.
Contributions made under this Section are not transferable to
other pension funds or retirement systems and are not
refundable upon termination of service.
(b) Beginning January 1, 1999, every community college
district (other than a community college district subject to
Article VII of the Public Community College Act) or
association of community college boards that is an employer
under the State Universities Retirement System shall
contribute toward the cost of the community college health
benefits provided under Section 6.9 of this Act an amount
equal to 0.50% of the salary paid to its full-time employees
who participate in the State Universities Retirement System
and are not members as defined in Section 3 of this Act.
These contributions shall be paid by the employer to the
State Universities Retirement System as service agent for the
Department of Central Management Services. The System may
use the same processes for collecting the contributions
required by this subsection that it uses to collect the
contributions received from those employers under Section
15-155 of the Illinois Pension Code.
The State Universities Retirement System shall promptly
deposit all moneys collected under this subsection (b) into
the Community College Health Insurance Security Fund created
in Section 6.9 of this Act. The moneys collected under this
Section shall be used only for the purposes authorized in
Section 6.9 of this Act and shall not be considered to be
assets of the State Universities Retirement System.
Contributions made under this Section are not transferable to
other pension funds or retirement systems and are not
refundable upon termination of service.
(c) On or before November 15 of each year, the Board of
Trustees of the State Universities Retirement System shall
certify to the Governor, the Director of Central Management
Services, and the State Comptroller its estimate of the total
amount of contributions to be paid under subsection (a) of
this Section for the next fiscal year. The certification
shall include a detailed explanation of the methods and
information that the Board relied upon in preparing its
estimate. As soon as possible after the effective date of
this Section, the Board shall submit its estimate for fiscal
year 1999.
(d) Beginning in fiscal year 1999, on the first day of
each month, or as soon thereafter as may be practical, the
State Treasurer and the State Comptroller shall transfer from
the General Revenue Fund to the Community College Health
Insurance Security Fund 1/12 of the annual amount
appropriated for that fiscal year to the State Comptroller
for deposit into the Community College Health Insurance
Security Fund under Section 1.4 of the State Pension Funds
Continuing Appropriation Act.
(e) Except where otherwise specified in this Section,
the definitions that apply to Article 15 of the Illinois
Pension Code apply to this Section.
(Source: P.A. 90-497, eff. 8-18-97.)
Section 10. The Illinois Pension Code is amended by
changing Sections 1-113.2, 1-116, 2-121, 2-121.1, 3-110,
7-139, 7-141, 7-141.1, 7-145.1, 7-157, 7-164, 7-166, 7-167,
7-184, 7-211, 8-125, 8-139, 8-153, 8-171, 8-244, 9-149,
9-194, 11-124, 11-134.2, 11-148, 11-167, 11-181, 11-182,
11-223, 13-303, 13-309, 13-310, 13-311, 13-314, 13-603,
14-118, 14-120, 14-128, 14-130, 15-107, 15-111, 15-112,
15-120, 15-134.5, 15-136.4, 15-139, 15-140, 15-141, 15-142,
15-144, 15-145, 15-154, 15-158.2, 15-181, 16-133, 16-135,
16-136.4, 16-138, 16-140, 16-143, 16-149.4, 16-184, 17-106,
17-117, 17-133, 17-150, 18-128, 20-121, 20-123, 20-124,
20-125, and 20-131 and adding Sections 1-120, 7-224, and
15-132.2 as follows:
(40 ILCS 5/1-113.2)
Sec. 1-113.2. List of permitted investments for all
Article 3 or 4 pension funds. Any pension fund established
under Article 3 or 4 may invest in the following items:
(1) Interest bearing direct obligations of the United
States of America.
(2) Interest bearing obligations to the extent that they
are fully guaranteed or insured as to payment of principal
and interest by the United States of America.
(3) Interest bearing bonds, notes, debentures, or other
similar obligations of agencies of the United States of
America. For the purposes of this Section, "agencies of the
United States of America" includes: (i) the Federal National
Mortgage Association and the Student Loan Marketing
Association; (ii) federal land banks, federal intermediate
credit banks, federal farm credit banks, and any other entity
authorized to issue direct debt obligations of the United
States of America under the Farm Credit Act of 1971 or
amendments to that Act; (iii) federal home loan banks and the
Federal Home Loan Mortgage Corporation; and (iv) any agency
created by Act of Congress that is authorized to issue direct
debt obligations of the United States of America.
(4) Interest bearing savings accounts or certificates of
deposit, issued by federally chartered banks or savings and
loan associations, to the extent that the deposits are
insured by agencies or instrumentalities of the federal
government.
(5) Interest bearing savings accounts or certificates of
deposit, issued by State of Illinois chartered banks or
savings and loan associations, to the extent that the
deposits are insured by agencies or instrumentalities of the
federal government.
(6) Investments in credit unions, to the extent that the
investments are insured by agencies or instrumentalities of
the federal government.
(7) Interest bearing bonds of the State of Illinois.
(8) Pooled interest bearing accounts managed by the
Illinois Public Treasurer's Investment Pool in accordance
with the Deposit of State Moneys Act and interest bearing
funds or pooled accounts managed, operated, and administered
by banks, subsidiaries of banks, or subsidiaries of bank
holding companies in accordance with the laws of the State of
Illinois.
(9) Interest bearing bonds or tax anticipation warrants
of any county, township, or municipal corporation of the
State of Illinois.
(10) Direct obligations of the State of Israel, subject
to the conditions and limitations of item (5.1) of Section
1-113.
(11) Money market mutual funds managed by investment
companies that are registered under the federal Investment
Company Act of 1940 and the Illinois Securities Law of 1953
and are diversified, open-ended management investment
companies; provided that the portfolio of the money market
mutual fund is limited to the following:
(i) bonds, notes, certificates of indebtedness,
treasury bills, or other securities that are guaranteed
by the full faith and credit of the United States of
America as to principal and interest;
(ii) bonds, notes, debentures, or other similar
obligations of the United States of America or its
agencies; and
(iii) short term obligations of corporations
organized in the United States with assets exceeding
$400,000,000, provided that (A) the obligations mature no
later than 180 days from the date of purchase, (B) at the
time of purchase, the obligations are rated by at least 2
standard national rating services at one of their 3
highest classifications, and (C) the obligations held by
the mutual fund do not exceed 10% of the corporation's
outstanding obligations.
(12) General accounts of life insurance companies
authorized to transact business in Illinois.
(13) Any combination of the following, not to exceed 10%
of the pension fund's net assets:
(i) separate accounts that are managed by life
insurance companies authorized to transact business in
Illinois and are comprised of diversified portfolios
consisting of common or preferred stocks, bonds, or money
market instruments; and
(ii) separate accounts that are managed by
insurance companies authorized to transact business in
Illinois, and are comprised of real estate or loans upon
real estate secured by first or second mortgages; and
(iii) mutual funds that meet the following
requirements:
(A) the mutual fund is managed by an
investment company as defined and registered under
the federal Investment Company Act of 1940 and
registered under the Illinois Securities Law of
1953;
(B) the mutual fund has been in operation for
at least 5 years;
(C) the mutual fund has total net assets of
$250 million or more; and
(D) the mutual fund is comprised of
diversified portfolios of common or preferred
stocks, bonds, or money market instruments.
(Source: P.A. 90-507, eff. 8-22-97.)
(40 ILCS 5/1-116) (from Ch. 108 1/2, par. 1-116)
Sec. 1-116. Federal contribution and benefit limitations
limitation.
(a) This Section applies to all pension funds and
retirement systems established under this Code.
(a-5) All pension funds and retirement systems
established under this Code shall comply with the applicable
contribution and benefit limitations imposed by Section 415
of the U.S. Internal Revenue Code of 1986 for tax qualified
plans under Section 401(a) of that Code.
(b) If any benefit payable by a pension fund or
retirement system subject to this Section exceeds the
applicable benefit limits set by Section 415 of the U.S.
Internal Revenue Code of 1986 for tax qualified plans under
Section 401(a) of that Code, the excess shall be payable only
from an excess benefit fund established under this Section in
accordance with federal law.
(c) An excess benefit fund shall be established by any
pension fund or retirement system subject to this Section
that has any member eligible to receive a benefit that
exceeds the applicable benefit limits set by Section 415 of
the U.S. Internal Revenue Code of 1986 for tax qualified
plans under Section 401(a) of that Code. Amounts shall be
credited to the excess benefit fund, and payments for excess
benefits made from the excess benefit fund, in a manner
consistent with the applicable federal law.
(d) For purposes of matters relating to the benefit
limits set by Section 415 of the U.S. Internal Revenue Code
of 1986, the limitation year may be defined by each affected
pension fund or retirement system for that fund or system.
(Source: P.A. 90-19, eff. 6-20-97.)
(40 ILCS 5/1-120 new)
Sec. 1-120. Payment to trust.
(a) If a person is a minor or has been determined by a
court to be under a legal disability, any benefits payable to
that person under this Code may be paid to the trustee of a
trust created for the sole benefit of that person while the
person is living, if the trustee of the trust has advised the
board of trustees of the pension fund or retirement system in
writing that the benefits will be held or used for the sole
benefit of that person. The pension fund or retirement
system shall not be required to determine the validity of the
trust or of any of the terms of the trust. The
representation of the trustee that the trust meets the
requirements of this Section shall be conclusive as to the
pension fund or retirement system. Payment of benefits to
the trust shall be an absolute discharge of the pension fund
or retirement system's liability with respect to the amounts
so paid.
(b) For purposes of this Section, "minor" means an
unmarried person under the age of 18.
(c) This Section is not a limitation on any other power
to pay benefits to or on behalf of a minor or person under
legal disability that is granted under this Code or other
applicable law.
(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, if the remarriage occurs
before the effective date of this amendatory Act of the 91st
General Assembly.
The changes made to this subsection by this amendatory
Act of the 91st General Assembly (pertaining to remarriage
prior to age 55) apply without regard to whether the deceased
participant or annuitant was in service on or after the
effective date of this amendatory Act.
(Source: P.A. 89-136, eff. 7-14-95; 90-766, eff. 8-14-98.)
(40 ILCS 5/2-121.1) (from Ch. 108 1/2, par. 2-121.1)
Sec. 2-121.1. Survivor's annuity - amount.
(a) A surviving spouse shall be entitled to 66 2/3% of
the amount of retirement annuity to which the participant or
annuitant was entitled on the date of death, without regard
to whether the participant had attained age 55 prior to his
or her death, subject to a minimum payment of 10% of salary.
If a surviving spouse, regardless of age, has in his or her
care at the date of death any eligible child or children of
the participant, the survivor's annuity shall be the greater
of the following: (1) 66 2/3% of the amount of retirement
annuity to which the participant or annuitant was entitled on
the date of death, or (2) 30% of the participant's salary
increased by 10% of salary on account of each such child,
subject to a total payment for the surviving spouse and
children of 50% of salary. If eligible children survive but
there is no surviving spouse, or if the surviving spouse
remarries or dies or becomes disqualified by remarriage while
eligible children survive, each eligible child shall be
entitled to an annuity of 20% of salary, subject to a maximum
total payment for all such children of 50% of salary.
However, the survivor's annuity payable under this
Section shall not be less than 100% of the amount of
retirement annuity to which the participant or annuitant was
entitled on the date of death, if he or she is survived by a
dependent disabled child.
The salary to be used for determining these benefits
shall be the salary used for determining the amount of
retirement annuity as provided in Section 2-119.01.
(b) Upon the death of a participant after the
termination of service or upon death of an annuitant, the
maximum total payment to a surviving spouse and eligible
children, or to eligible children alone if there is no
surviving spouse, shall be 75% of the retirement annuity to
which the participant or annuitant was entitled, unless there
is a dependent disabled child among the survivors.
(c) When a child ceases to be an eligible child, the
annuity to that child, or to the surviving spouse on account
of that child, shall thereupon cease, and the annuity payable
to the surviving spouse or other eligible children shall be
recalculated if necessary.
Upon the ineligibility of the last eligible child, the
annuity shall immediately revert to the amount payable upon
death of a participant or annuitant who leaves no eligible
children. If the surviving spouse is then under age 50, the
annuity as revised shall be deferred until the attainment of
age 50.
(d) Beginning January 1, 1990, every survivor's annuity
shall be increased (1) on each January 1 occurring on or
after the commencement of the annuity if the deceased member
died while receiving a retirement annuity, or (2) in other
cases, on each January 1 occurring on or after the first
anniversary of the commencement of the annuity, by an amount
equal to 3% of the current amount of the annuity, including
any previous increases under this Article. Such increases
shall apply without regard to whether the deceased member was
in service on or after the effective date of this amendatory
Act of 1991, but shall not accrue for any period prior to
January 1, 1990.
(e) Notwithstanding any other provision of this Article,
beginning January 1, 1990, the minimum survivor's annuity
payable to any person who is entitled to receive a survivor's
annuity under this Article shall be $300 per month, without
regard to whether or not the deceased participant was in
service on the effective date of this amendatory Act of 1989.
(f) In the case of a proportional survivor's annuity
arising under the Retirement Systems Reciprocal Act where the
amount payable by the System on January 1, 1993 is less than
$300 per month, the amount payable by the System shall be
increased beginning on that date by a monthly amount equal to
$2 for each full year that has expired since the annuity
began.
(Source: P.A. 86-273; 86-1488; 87-794; 87-1265.)
(40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
Sec. 3-110. Creditable service.
(a) "Creditable service" is the time served by a police
officer as a member of a regularly constituted police force
of a municipality. In computing creditable service furloughs
without pay exceeding 30 days shall not be counted, but all
leaves of absence for illness or accident, regardless of
length, and all periods of disability retirement for which a
police officer has received no disability pension payments
under this Article shall be counted.
(b) Creditable service includes all periods of service
in the military, naval or air forces of the United States
entered upon while an active police officer of a
municipality, provided that upon applying for a permanent
pension, and in accordance with the rules of the board, the
police officer pays into the fund the amount the officer
would have contributed if he or she had been a regular
contributor during such period, to the extent that the
municipality which the police officer served has not made
such contributions in the officer's behalf. The total amount
of such creditable service shall not exceed 5 years, except
that any police officer who on July 1, 1973 had more than 5
years of such creditable service shall receive the total
amount thereof.
(c) Creditable service also includes service rendered by
a police officer while on leave of absence from a police
department to serve as an executive of an organization whose
membership consists of members of a police department,
subject to the following conditions: (i) the police officer
is a participant of a fund established under this Article
with at least 10 years of service as a police officer; (ii)
the police officer received no credit for such service under
any other retirement system, pension fund, or annuity and
benefit fund included in this Code; (iii) pursuant to the
rules of the board the police officer pays to the fund the
amount he or she would have contributed had the officer been
an active member of the police department; and (iv) the
organization pays a contribution equal to the municipality's
normal cost for that period of service.
(d)(1) Creditable service also includes periods of
service originally established in another police pension fund
under this Article or in the Fund established under Article 7
of this Code for which (i) the contributions have been
transferred under Section 3-110.7 or Section 7-139.9 and (ii)
any additional contribution required under paragraph (2) of
this subsection has been paid in full in accordance with the
requirements of this subsection (d).
(2) If the board of the pension fund to which creditable
service and related contributions are transferred under
Section 3-110.7 or 7-139.9 determines that the amount
transferred is less than the true cost to the pension fund of
allowing that creditable service to be established, then in
order to establish that creditable service the police officer
must pay to the pension fund, within the payment period
specified in paragraph (3) of this subsection, an additional
contribution equal to the difference, as determined by the
board in accordance with the rules and procedures adopted
under paragraph (6) of this subsection.
(3) Except as provided in paragraph (4), the additional
contribution must be paid to the board (i) within 5 years
from the date of the transfer of contributions under Section
3-110.7 or 7-139.9 and (ii) before the police officer
terminates service with the fund. The additional
contribution may be paid in a lump sum or in accordance with
a schedule of installment payments authorized by the board.
(4) If the police officer dies in service before payment
in full has been made and before the expiration of the 5-year
payment period, the surviving spouse of the officer may elect
to pay the unpaid amount on the officer's behalf within 6
months after the date of death, in which case the creditable
service shall be granted as though the deceased police
officer had paid the remaining balance on the day before the
date of death.
(5) If the additional contribution is not paid in full
within the required time, the creditable service shall not be
granted and the police officer (or the officer's surviving
spouse or estate) shall be entitled to receive a refund of
(i) any partial payment of the additional contribution that
has been made by the police officer and (ii) those portions
of the amounts transferred under subdivision (a)(1) of
Section 3-110.7 or subdivisions (a)(1) and (a)(3) of Section
7-139.9 that represent employee contributions paid by the
police officer (but not the accumulated interest on those
contributions) and interest paid by the police officer to the
prior pension fund in order to reinstate service terminated
by acceptance of a refund.
At the time of paying a refund under this item (5), the
pension fund shall also repay to the pension fund from which
the contributions were transferred under Section 3-110.7 or
7-139.9 the amount originally transferred under subdivision
(a)(2) of that Section, plus interest at the rate of 6% per
year, compounded annually, from the date of the original
transfer to the date of repayment. Amounts repaid to the
Article 7 fund under this provision shall be credited to the
appropriate municipality.
Transferred credit that is not granted due to failure to
pay the additional contribution within the required time is
lost; it may not be transferred to another pension fund and
may not be reinstated in the pension fund from which it was
transferred.
(6) The Public Employee Pension Fund Division of the
Department of Insurance shall establish by rule the manner of
making the calculation required under paragraph (2) of this
subsection, taking into account the appropriate actuarial
assumptions; the police officer's service, age, and salary
history; the level of funding of the pension fund to which
the credits are being transferred; and any other factors that
the Division determines to be relevant. The rules may
require that all calculations made under paragraph (2) be
reported to the Division by the board performing the
calculation, together with documentation of the creditable
service to be transferred, the amounts of contributions and
interest to be transferred, the manner in which the
calculation was performed, the numbers relied upon in making
the calculation, the results of the calculation, and any
other information the Division may deem useful.
(Source: P.A. 89-52, eff. 6-30-95; 90-460, eff. 8-17-97.)
(40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
Sec. 7-139. Credits and creditable service to employees.
(a) Each participating employee shall be granted credits
and creditable service, for purposes of determining the
amount of any annuity or benefit to which he or a beneficiary
is entitled, as follows:
1. For prior service: Each participating employee
who is an employee of a participating municipality or
participating instrumentality on the effective date shall
be granted creditable service, but no credits under
paragraph 2 of this subsection (a), for periods of prior
service for which credit has not been received under any
other pension fund or retirement system established under
this Code, as follows:
If the effective date of participation for the
participating municipality or participating
instrumentality is on or before January 1, 1998,
creditable service shall be granted for the entire period
of prior service with that employer without any employee
contribution.
If the effective date of participation for the
participating municipality or participating
instrumentality is after January 1, 1998, creditable
service shall be granted for the last 20% of the period
of prior service with that employer, but no more than 5
years, without any employee contribution. A
participating employee may establish creditable service
for the remainder of the period of prior service with
that employer by making an application in writing,
accompanied by payment of an employee contribution in an
amount determined by the Fund, based on the employee
contribution rates in effect at the time of application
for the creditable service and the employee's salary rate
on the effective date of participation for that employer,
plus interest at the effective rate from the date of the
prior service to the date of payment. Application for
this creditable service may be made at any time while the
employee is still in service.
Any person who has withdrawn from the service of a
participating municipality or participating
instrumentality prior to the effective date, who reenters
the service of the same municipality or participating
instrumentality after the effective date and becomes a
participating employee is entitled to creditable service
for prior service as otherwise provided in this
subdivision (a)(1) only if he or she renders 2 years of
service as a participating employee after the effective
date. Application for such service must be made while in
a participating status. The salary rate to be used in
the calculation of the required employee contribution, if
any, shall be the employee's salary rate at the time of
first reentering service with the employer after the
employer's effective date of participation.
2. For current service, each participating employee
shall be credited with:
a. Additional credits of amounts equal to each
payment of additional contributions received from
him under Section 7-173, as of the date the
corresponding payment of earnings is payable to him.
b. Normal credits of amounts equal to each
payment of normal contributions received from him,
as of the date the corresponding payment of earnings
is payable to him, and normal contributions made for
the purpose of establishing out-of-state service
credits as permitted under the conditions set forth
in paragraph 6 of this subsection (a).
c. Municipality credits in an amount equal to
1.4 times the normal credits, except those
established by out-of-state service credits, as of
the date of computation of any benefit if these
credits would increase the benefit.
d. Survivor credits equal to each payment of
survivor contributions received from the
participating employee as of the date the
corresponding payment of earnings is payable, and
survivor contributions made for the purpose of
establishing out-of-state service credits.
3. For periods of temporary and total and permanent
disability benefits, each employee receiving disability
benefits shall be granted creditable service for the
period during which disability benefits are payable.
Normal and survivor credits, based upon the rate of
earnings applied for disability benefits, shall also be
granted if such credits would result in a higher benefit
to any such employee or his beneficiary.
4. For authorized leave of absence without pay: A
participating employee shall be granted credits and
creditable service for periods of authorized leave of
absence without pay under the following conditions:
a. An application for credits and creditable
service is submitted to the board while the employee
is in a status of active employment, and within 2
years after termination of the leave of absence
period for which credits and creditable service are
sought.
b. Not more than 12 complete months of
creditable service for authorized leave of absence
without pay shall be counted for purposes of
determining any benefits payable under this Article.
c. Credits and creditable service shall be
granted for leave of absence only if such leave is
approved by the governing body of the municipality,
including approval of the estimated cost thereof to
the municipality as determined by the fund, and
employee contributions, plus interest at the
effective rate applicable for each year from the end
of the period of leave to date of payment, have been
paid to the fund in accordance with Section 7-173.
The contributions shall be computed upon the
assumption earnings continued during the period of
leave at the rate in effect when the leave began.
d. Benefits under the provisions of Sections
7-141, 7-146, 7-150 and 7-163 shall become payable
to employees on authorized leave of absence, or
their designated beneficiary, only if such leave of
absence is creditable hereunder, and if the employee
has at least one year of creditable service other
than the service granted for leave of absence. Any
employee contributions due may be deducted from any
benefits payable.
e. No credits or creditable service shall be
allowed for leave of absence without pay during any
period of prior service.
5. For military service: The governing body of a
municipality or participating instrumentality may elect
to allow creditable service to participating employees
who leave their employment to serve in the armed forces
of the United States for all periods of such service,
provided that the person returns to active employment
within 90 days after completion of full time active duty,
but no creditable service shall be allowed such person
for any period that can be used in the computation of a
pension or any other pay or benefit, other than pay for
active duty, for service in any branch of the armed
forces of the United States. If necessary to the
computation of any benefit, the board shall establish
municipality credits for participating employees under
this paragraph on the assumption that the employee
received earnings at the rate received at the time he
left the employment to enter the armed forces. A
participating employee in the armed forces shall not be
considered an employee during such period of service and
no additional death and no disability benefits are
payable for death or disability during such period.
Any participating employee who left his employment
with a municipality or participating instrumentality to
serve in the armed forces of the United States and who
again became a participating employee within 90 days
after completion of full time active duty by entering the
service of a different municipality or participating
instrumentality, which has elected to allow creditable
service for periods of military service under the
preceding paragraph, shall also be allowed creditable
service for his period of military service on the same
terms that would apply if he had been employed, before
entering military service, by the municipality or
instrumentality which employed him after he left the
military service and the employer costs arising in
relation to such grant of creditable service shall be
charged to and paid by that municipality or
instrumentality.
Notwithstanding the foregoing, any participating
employee shall be entitled to creditable service as
required by any federal law relating to re-employment
rights of persons who served in the United States Armed
Services. Such creditable service shall be granted upon
payment by the member of an amount equal to the employee
contributions which would have been required had the
employee continued in service at the same rate of
earnings during the military leave period, plus interest
at the effective rate.
5.1. In addition to any creditable service
established under paragraph 5 of this subsection (a),
creditable service may be granted for up to 24 months of
service in the armed forces of the United States.
In order to receive creditable service for military
service under this paragraph 5.1, a participating
employee must (1) apply to the Fund in writing and
provide evidence of the military service that is
satisfactory to the Board; (2) obtain the written
approval of the current employer; and (3) make
contributions to the Fund equal to (i) the employee
contributions that would have been required had the
service been rendered as a member, plus (ii) an amount
determined by the board to be equal to the employer's
normal cost of the benefits accrued for that military
service, plus (iii) interest on items (i) and (ii) from
the date of first membership in the Fund to the date of
payment. If payment is made during the 6-month period
that begins 3 months after the effective date of this
amendatory Act of 1997, the required interest shall be at
the rate of 2.5% per year, compounded annually;
otherwise, the required interest shall be calculated at
the regular interest rate.
6. For out-of-state service: Creditable service
shall be granted for service rendered to an out-of-state
local governmental body under the following conditions:
The employee had participated and has irrevocably
forfeited all rights to benefits in the out-of-state
public employees pension system; the governing body of
his participating municipality or instrumentality
authorizes the employee to establish such service; the
employee has 2 years current service with this
municipality or participating instrumentality; the
employee makes a payment of contributions, which shall be
computed at 8% (normal) plus 2% (survivor) times length
of service purchased times the average rate of earnings
for the first 2 years of service with the municipality or
participating instrumentality whose governing body
authorizes the service established plus interest at the
effective rate on the date such credits are established,
payable from the date the employee completes the required
2 years of current service to date of payment. In no
case shall more than 120 months of creditable service be
granted under this provision.
7. For retroactive service: Any employee who could
have but did not elect to become a participating
employee, or who should have been a participant in the
Municipal Public Utilities Annuity and Benefit Fund
before that fund was superseded, may receive creditable
service for the period of service not to exceed 50
months; however, a current or former county board member
may establish credit under this paragraph 7 for more than
50 months of service as a member of the county board if
the excess over 50 months is approved by resolution of
the affected county board filed with the Fund before
January 1, 1999.
Any employee who is a participating employee on or
after September 24, 1981 and who was excluded from
participation by the age restrictions removed by Public
Act 82-596 may receive creditable service for the period,
on or after January 1, 1979, excluded by the age
restriction and, in addition, if the governing body of
the participating municipality or participating
instrumentality elects to allow creditable service for
all employees excluded by the age restriction prior to
January 1, 1979, for service during the period prior to
that date excluded by the age restriction. Any employee
who was excluded from participation by the age
restriction removed by Public Act 82-596 and who is not a
participating employee on or after September 24, 1981 may
receive creditable service for service after January 1,
1979. Creditable service under this paragraph shall be
granted upon payment of the employee contributions which
would have been required had he participated, with
interest at the effective rate for each year from the end
of the period of service established to date of payment.
8. For accumulated unused sick leave: A
participating employee who is applying for a retirement
annuity shall be entitled to creditable service for that
portion of the employee's accumulated unused sick leave
for which payment is not received, as follows:
a. Sick leave days shall be limited to those
accumulated under a sick leave plan established by a
participating municipality or participating
instrumentality which is available to all employees
or a class of employees.
b. Only sick leave days accumulated with a
participating municipality or participating
instrumentality with which the employee was in
service within 60 days of the effective date of his
retirement annuity shall be credited; If the
employee was in service with more than one employer
during this period only the sick leave days with the
employer with which the employee has the greatest
number of unpaid sick leave days shall be
considered.
c. The creditable service granted shall be
considered solely for the purpose of computing the
amount of the retirement annuity and shall not be
used to establish any minimum service period
required by any provision of the Illinois Pension
Code, the effective date of the retirement annuity,
or the final rate of earnings.
d. The creditable service shall be at the rate
of 1/20 of a month for each full sick day, provided
that no more than 12 months may be credited under
this subdivision 8.
e. Employee contributions shall not be
required for creditable service under this
subdivision 8.
f. Each participating municipality and
participating instrumentality with which an employee
has service within 60 days of the effective date of
his retirement annuity shall certify to the board
the number of accumulated unpaid sick leave days
credited to the employee at the time of termination
of service.
9. For service transferred from another system:
Credits and creditable service shall be granted for
service under Article 3, 4, 5, 14 or 16 of this Act, to
any active member of this Fund, and to any inactive
member who has been a county sheriff, upon transfer of
such credits pursuant to Section 3-110.3, 4-108.3, 5-235,
14-105.6 or 16-131.4, and payment by the member of the
amount by which (1) the employer and employee
contributions that would have been required if he had
participated in this Fund as a sheriff's law enforcement
employee during the period for which credit is being
transferred, plus interest thereon at the effective rate
for each year, compounded annually, from the date of
termination of the service for which credit is being
transferred to the date of payment, exceeds (2) the
amount actually transferred to the Fund. Such transferred
service shall be deemed to be service as a sheriff's law
enforcement employee for the purposes of Section 7-142.1.
(b) Creditable service - amount:
1. One month of creditable service shall be allowed
for each month for which a participating employee made
contributions as required under Section 7-173, or for
which creditable service is otherwise granted hereunder.
Not more than 1 month of service shall be credited and
counted for 1 calendar month, and not more than 1 year of
service shall be credited and counted for any calendar
year. A calendar month means a nominal month beginning
on the first day thereof, and a calendar year means a
year beginning January 1 and ending December 31.
2. A seasonal employee shall be given 12 months of
creditable service if he renders the number of months of
service normally required by the position in a 12-month
period and he remains in service for the entire 12-month
period. Otherwise a fractional year of service in the
number of months of service rendered shall be credited.
3. An intermittent employee shall be given
creditable service for only those months in which a
contribution is made under Section 7-173.
(c) No application for correction of credits or
creditable service shall be considered unless the board
receives an application for correction while (1) the
applicant is a participating employee and in active
employment with a participating municipality or
instrumentality, or (2) while the applicant is actively
participating in a pension fund or retirement system which is
a participating system under the Retirement Systems
Reciprocal Act. A participating employee or other applicant
shall not be entitled to credits or creditable service unless
the required employee contributions are made in a lump sum or
in installments made in accordance with board rule.
(d) Upon the granting of a retirement, surviving spouse
or child annuity, a death benefit or a separation benefit, on
account of any employee, all individual accumulated credits
shall thereupon terminate. Upon the withdrawal of additional
contributions, the credits applicable thereto shall thereupon
terminate. Terminated credits shall not be applied to
increase the benefits any remaining employee would otherwise
receive under this Article.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
Sec. 7-141. Retirement annuities - Conditions.
Retirement annuities shall be payable as hereinafter set
forth:
(a) A participating employee who, regardless of cause,
is separated from the service of all participating
municipalities and instrumentalities thereof and
participating instrumentalities shall be entitled to a
retirement annuity provided:
1. He is at least age 55, or in the case of a person who
is eligible to have his annuity calculated under Section
7-142.1, he is at least age 50;
2. He is (i) an employee who was employed by any
participating municipality or participating instrumentality
which had not elected to exclude persons employed in
positions normally requiring performance of duty for less
than 1000 hours per year or was employed in a position
normally requiring performance of duty for 600 hours or more
per year prior to such election by any participating
municipality or participating instrumentality included in and
subject to this Article on or before the effective date of
this amendatory Act of 1981 which made such election and is
not entitled to receive earnings for employment in a position
normally requiring performance of duty for 600 hours or more
per year for any participating municipality and
instrumentalities thereof and participating instrumentality;
or (ii) an employee who was employed only by a participating
municipality or participating instrumentality, or
participating municipalities or participating
instrumentalities, which have elected to exclude persons in
positions normally requiring performance of duty for less
than 1000 hours per year after the effective date of such
exclusion or which are included under and subject to the
Article after the effective date of this amendatory Act of
1981 and elects to exclude persons in such positions, and is
not entitled to receive earnings for employment in a position
normally requiring performance of duty for 1000 hours or more
per year by such a participating municipality or
participating instrumentality;
3. The amount of his annuity, before the application of
paragraph (b) of Section 7-142 is at least $10 per month;
4. If he first became a participating employee after
December 31, 1961, he has at least 8 years of service. This
service requirement shall not apply to any participating
employee, regardless of participation date, if the General
Assembly terminates the Fund.
(b) Retirement annuities shall be payable:
1. As provided in Section 7-119;
2. Except as provided in item 3, upon receipt by the
fund of a written application by the board. The effective
date may be not more than one year prior to the date of the
receipt by the fund of the application;
3. Upon attainment of age 70 1/2 if (i) the member (i)
has not submitted an application for the annuity, (ii) the
member has at least 8 years of service credit and is no
longer in service, and (ii) is otherwise entitled to an
annuity under this Article (iii) the pension amount is at
least $30 per month, and (iv) the Fund is able to locate the
member;
4. To the beneficiary of the deceased annuitant for the
unpaid amount accrued to date of death, if any.
(Source: P.A. 87-740.)
(40 ILCS 5/7-141.1)
Sec. 7-141.1. Early retirement incentive.
(a) The General Assembly finds and declares that:
(1) Units of local government across the State have
been functioning under a financial crisis.
(2) This financial crisis is expected to continue.
(3) Units of local government must depend on
additional sources of revenue and, when those sources are
not forthcoming, must establish cost-saving programs.
(4) An early retirement incentive designed
specifically to target highly-paid senior employees could
result in significant annual cost savings.
(5) The early retirement incentive should be made
available only to those units of local government that
determine that an early retirement incentive is in their
best interest.
(6) A unit of local government adopting a program
of early retirement incentives under this Section is
encouraged to implement personnel procedures to prohibit,
for at least 5 years, the rehiring (whether on payroll or
by independent contract) of employees who receive early
retirement incentives.
(7) A unit of local government adopting a program
of early retirement incentives under this Section is also
encouraged to replace as few of the participating
employees as possible and to hire replacement employees
for salaries totaling no more than 80% of the total
salaries formerly paid to the employees who participate
in the early retirement program.
It is the primary purpose of this Section to encourage
units of local government that can realize true cost savings,
or have determined that an early retirement program is in
their best interest, to implement an early retirement
program.
(b) Until the effective date of this amendatory Act of
1997, this Section does not apply to any employer that is a
city, village, or incorporated town, nor to the employees of
any such employer. Beginning on the effective date of this
amendatory Act of 1997, any employer under this Article,
including an employer that is a city, village, or
incorporated town, may establish an early retirement
incentive program for its employees under this Section. The
decision of a city, village, or incorporated town to consider
or establish an early retirement program is at the sole
discretion of that city, village, or incorporated town, and
nothing in this amendatory Act of 1997 limits or otherwise
diminishes this discretion. Nothing contained in this
Section shall be construed to require a city, village, or
incorporated town to establish an early retirement program
and no city, village, or incorporated town may be compelled
to implement such a program.
The benefits provided in this Section are available only
to members employed by a participating employer that has
filed with the Board of the Fund a resolution or ordinance
expressly providing for the creation of an early retirement
incentive program under this Section for its employees and
specifying the effective date of the early retirement
incentive program. Subject to the limitation in subsection
(h), an employer may adopt a resolution or ordinance
providing a program of early retirement incentives under this
Section at any time.
The resolution or ordinance shall be in substantially the
following form:
RESOLUTION (ORDINANCE) NO. ....
A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
WHEREAS, Section 7-141.1 of the Illinois Pension Code
provides that a participating employer may elect to adopt an
early retirement incentive program offered by the Illinois
Municipal Retirement Fund by adopting a resolution or
ordinance; and
WHEREAS, The goal of adopting an early retirement program
is to realize a substantial savings in personnel costs by
offering early retirement incentives to employees who have
accumulated many years of service credit; and
WHEREAS, Implementation of the early retirement program
will provide a budgeting tool to aid in controlling payroll
costs; and
WHEREAS, The (name of governing body) has determined that
the adoption of an early retirement incentive program is in
the best interests of the (name of participating employer);
therefore be it
RESOLVED (ORDAINED) by the (name of governing body) of
(name of participating employer) that:
(1) The (name of participating employer) does hereby
adopt the Illinois Municipal Retirement Fund early retirement
incentive program as provided in Section 7-141.1 of the
Illinois Pension Code. The early retirement incentive
program shall take effect on (date).
(2) In order to help achieve a true cost savings, a
person who retires under the early retirement incentive
program shall lose those incentives if he or she later
accepts employment with any IMRF employer in a position for
which participation in IMRF is required or is elected by the
employee.
(3) In order to utilize an early retirement incentive as
a budgeting tool, the (name of participating employer) will
use its best efforts either to limit the number of employees
who replace the employees who retire under the early
retirement program or to limit the salaries paid to the
employees who replace the employees who retire under the
early retirement program.
(4) The effective date of each employee's retirement
under this early retirement program shall be set by (name of
employer) and shall be no earlier than the effective date of
the program and no later than one year after that effective
date; except that the employee may require that the
retirement date set by the employer be no later than the June
30 next occurring after the effective date of the program and
no earlier than the date upon which the employee qualifies
for retirement.
(5) To be eligible for the early retirement incentive
under this Section, the employee must have attained age 50
and have at least 20 years of creditable service by his or
her retirement date.
(6) The (clerk or secretary) shall promptly file a
certified copy of this resolution (ordinance) with the Board
of Trustees of the Illinois Municipal Retirement Fund.
CERTIFICATION
I, (name), the (clerk or secretary) of the (name of
participating employer) of the County of (name), State of
Illinois, do hereby certify that I am the keeper of the books
and records of the (name of employer) and that the foregoing
is a true and correct copy of a resolution (ordinance) duly
adopted by the (governing body) at a meeting duly convened
and held on (date).
SEAL
(Signature of clerk or secretary)
(c) To be eligible for the benefits provided under an
early retirement incentive program adopted under this
Section, a member must:
(1) be a participating employee of this Fund who,
on the effective date of the program, (i) is in active
payroll status as an employee of a participating employer
that has filed the required ordinance or resolution with
the Board, (ii) is on layoff status from such a position
with a right of re-employment or recall to service, (iii)
is on a leave of absence from such a position, or (iv) is
on disability but has not been receiving benefits under
Section 7-146 or 7-150 for a period of more than 2 years
from the date of application;
(2) have never previously received a retirement
annuity under this Article or under the Retirement
Systems Reciprocal Act using service credit established
under this Article;
(3) (blank); file with the Board within 60 days of
the effective date of the program an application
requesting the benefits provided in this Section;
(4) have at least 20 years of creditable service in
the Fund by the date of retirement, without the use of
any creditable service established under this Section;
(5) have attained age 50 by the date of retirement,
without the use of any age enhancement received under
this Section; and
(6) be eligible to receive a retirement annuity
under this Article by the date of retirement, for which
purpose the age enhancement and creditable service
established under this Section may be considered.
(d) The employer shall determine the retirement date for
each employee participating in the early retirement program
adopted under this Section. The retirement date shall be no
earlier than the effective date of the program and no later
than one year after that effective date, except that the
employee may require that the retirement date set by the
employer be no later than the June 30 next occurring after
the effective date of the program and no earlier than the
date upon which the employee qualifies for retirement. The
employer shall give each employee participating in the early
retirement program at least 30 days written notice of the
employee's designated retirement date, unless the employee
waives this notice requirement.
(e) An eligible person may establish up to 5 years of
creditable service under this Section. In addition, for each
period of creditable service established under this Section,
a person shall have his or her age at retirement deemed
enhanced by an equivalent period.
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 final rate of earnings and the determination of earnings,
salary, or compensation under this or any other Article of
the Code.
The age enhancement established under this Section may be
used for all purposes under this Article (including
calculation of the reduction imposed under subdivision
(a)1b(iv) of Section 7-142), except for purposes of a
reversionary annuity under Section 7-145 and any
distributions required because of age. The age enhancement
established under this Section may be used in calculating a
proportionate annuity payable by this Fund under the
Retirement Systems Reciprocal Act, but shall not be used in
determining benefits payable under other Articles of this
Code under the Retirement Systems Reciprocal Act.
(f) For all creditable service established under this
Section, the member must pay to the Fund an employee
contribution consisting of 4.5% of the member's highest
annual salary rate used in the determination of the final
rate of earnings for retirement annuity purposes for each
year of creditable service granted under this Section. For
creditable service established under this Section by a person
who is a sheriff's law enforcement employee to be deemed
service as a sheriff's law enforcement employee, the employee
contribution shall be at the rate of 6.5% of highest annual
salary per year of creditable service granted. Contributions
for fractions of a year of service shall be prorated. Any
amounts that are disregarded in determining the final rate of
earnings under subdivision (d)(5) of Section 7-116 (the 125%
rule) shall also be disregarded in determining the required
contribution under this subsection (f).
The employee contribution shall be paid to the Fund as
follows: If the member is entitled to a lump sum payment for
accumulated vacation, sick leave, or personal leave upon
withdrawal from service, the employer shall deduct the
employee contribution from that lump sum and pay the deducted
amount directly to the Fund. If there is no such lump sum
payment or the required employee contribution exceeds the net
amount of the lump sum payment, then the remaining amount
due, at the option of the employee, may either be paid to the
Fund before the annuity commences or deducted from the
retirement annuity in 24 equal monthly installments.
(g) An annuitant who has received any age enhancement or
creditable service under this Section and thereafter accepts
employment with or enters into a personal services contract
with an employer under this Article thereby forfeits that age
enhancement and creditable service. A person forfeiting
early retirement incentives under this subsection (i) must
repay to the Fund that portion of the retirement annuity
already received which is attributable to the early
retirement incentives that are being forfeited, (ii) shall
not be eligible to participate in any future early retirement
program adopted under this Section, and (iii) is entitled to
a refund of the employee contribution paid under subsection
(f). The Board shall deduct the required repayment from the
refund and may impose a reasonable payment schedule for
repaying the amount, if any, by which the required repayment
exceeds the refund amount.
(h) The additional unfunded liability accruing as a
result of the adoption of a program of early retirement
incentives under this Section by an employer shall be
amortized over a period of 10 years beginning on January 1 of
the second calendar year following the calendar year in which
the latest date for beginning to receive a retirement annuity
under the program (as determined by the employer under
subsection (d) of this Section) occurs; except that the
employer may provide for a shorter amortization period (of no
less than 5 years) by adopting an ordinance or resolution
specifying the length of the amortization period and
submitting a certified copy of the ordinance or resolution to
the Fund no later than 6 months after the effective date of
the program. An employer, at its discretion, may accelerate
payments to the Fund.
An employer may provide more than one early retirement
incentive program for its employees under this Section.
However, an employer that has provided an early retirement
incentive program for its employees under this Section may
not provide another early retirement incentive program under
this Section until the liability arising from the earlier
program has been fully paid to the Fund.
(Source: P.A. 89-329, eff. 8-17-95; 90-32, eff. 6-27-97.)
(40 ILCS 5/7-145.1)
Sec. 7-145.1. Alternative annuity for county officers.
(a) The benefits provided in this Section and Section
7-145.2 are available only if the county board has filed with
the Board of the Fund a resolution or ordinance expressly
consenting to the availability of these benefits for its
elected county officers. The county board's consent is
irrevocable with respect to persons participating in the
program, but may be revoked at any time with respect to
persons who have not paid an additional optional contribution
under this Section before the date of revocation.
An elected county officer may elect to establish
alternative credits for an alternative annuity by electing in
writing to make additional optional contributions in
accordance with this Section and procedures established by
the board. These alternative credits are available only for
periods of service as an elected county officer. The elected
county officer may discontinue making the additional optional
contributions by notifying the Fund in writing in accordance
with this Section and procedures established by the board.
Additional optional contributions for the alternative
annuity shall be as follows:
(1) For service as an elected county officer after
the option is elected, an additional contribution of 3%
of salary shall be contributed to the Fund on the same
basis and under the same conditions as contributions
required under Section 7-173.
(2) For service as an elected county officer before
the option is elected, an additional contribution of 3%
of the salary for the applicable period of service, plus
interest at the effective rate from the date of service
to the date of payment, plus any additional amount
required by the county board under paragraph (3). All
payments for past service must be paid in full before
credit is given.
(3) With respect to service as an elected county
officer before the option is elected, if payment is made
after the county board has filed with the Board of the
Fund a resolution or ordinance requiring an additional
contribution under this paragraph, then the contribution
required under paragraph (2) shall include an amount to
be determined by the Fund, equal to the actuarial present
value of the additional employer cost that would
otherwise result from the alternative credits being
established for that service. A county board's
resolution or ordinance requiring additional
contributions under this paragraph (3) is irrevocable.
No additional optional contributions may be made for any
period of service for which credit has been previously
forfeited by acceptance of a refund, unless the refund is
repaid in full with interest at the effective rate from the
date of refund to the date of repayment.
(b) In lieu of the retirement annuity otherwise payable
under this Article, an elected county officer who (1) has
elected to participate in the Fund and make additional
optional contributions in accordance with this Section, (2)
has held and made additional optional contributions with
respect to the same elected county office for at least 8
years, and (3) has attained age 55 with at least 8 years of
service credit (or has attained age 50 with at least 20 years
of service as a sheriff's law enforcement employee) may elect
to have his retirement annuity computed as follows: 3% of
the participant's salary for each of the first 8 years of
service credit, plus 4% of that salary for each of the next 4
years of service credit, plus 5% of that salary for each year
of service credit in excess of 12 years, subject to a maximum
of 80% of that salary.
This formula applies only to service in an elected county
office that the officer held for at least 8 years, and only
to service for which additional optional contributions have
been paid under this Section. If an elected county officer
qualifies to have this formula applied to service in more
than one elected county office, the qualifying service shall
be accumulated for purposes of determining the applicable
accrual percentages, but the salary used for each office
shall be the separate salary calculated for that office, as
defined in subsection (g).
To the extent that the elected county officer has service
credit that does not qualify for this formula, his retirement
annuity will first be determined in accordance with this
formula with respect to the service to which this formula
applies, and then in accordance with the remaining Sections
of this Article with respect to the service to which this
formula does not apply.
(c) In lieu of the disability benefits otherwise payable
under this Article, an elected county officer who (1) has
elected to participate in the Fund, and (2) has become
permanently disabled and as a consequence is unable to
perform the duties of his office, and (3) was making optional
contributions in accordance with this Section at the time the
disability was incurred, may elect to receive a disability
annuity calculated in accordance with the formula in
subsection (b). For the purposes of this subsection, an
elected county officer shall be considered permanently
disabled only if: (i) disability occurs while in service as
an elected county officer and is of such a nature as to
prevent him from reasonably performing the duties of his
office at the time; and (ii) the board has received a written
certification by at least 2 licensed physicians appointed by
it stating that the officer is disabled and that the
disability is likely to be permanent.
(d) Refunds of additional optional contributions shall
be made on the same basis and under the same conditions as
provided under Section 7-166, 7-167 and 7-168. Interest
shall be credited at the effective rate on the same basis and
under the same conditions as for other contributions.
If an elected county officer fails to hold that same
elected county office for at least 8 years, he or she shall
be entitled after leaving office to receive a refund of the
additional optional contributions made with respect to that
office, plus interest at the effective rate.
(e) The plan of optional alternative benefits and
contributions shall be available to persons who are elected
county officers and active contributors to the Fund on or
after November 15, 1994. A person who was an elected county
officer and an active contributor to the Fund on November 15,
1994 but is no longer an active contributor may apply to make
additional optional contributions under this Section at any
time within 90 days after the effective date of this
amendatory Act of 1997; if the person is an annuitant, the
resulting increase in annuity shall begin to accrue on the
first day of the month following the month in which the
required payment is received by the Fund.
(f) For the purposes of this Section and Section
7-145.2, the terms "elected county officer" and "elected
county office" include, but are not limited to: (1) the
county clerk, recorder, treasurer, coroner, assessor (if
elected), auditor, sheriff, and State's Attorney; members of
the county board; and the clerk of the circuit court; and (2)
a person who has been appointed to fill a vacancy in an
office that is normally filled by election on a countywide
basis, for the duration of his or her service in that office.
The terms "elected county officer" and "elected county
office" do not include any officer or office of a county that
has not consented to the availability of benefits under this
Section and Section 7-145.2.
(g) For the purposes of this Section and Section
7-145.2, the term "salary" means the final rate of earnings
for the elected county office held, calculated in a manner
consistent with Section 7-116, but for that office only. If
an elected county officer qualifies to have the formula in
subsection (b) applied to service in more than one elected
county office, a separate salary shall be calculated and
applied with respect to each such office.
(h) The changes to this Section made by this amendatory
Act of the 91st General Assembly apply to persons who first
make an additional optional contribution under this Section
on or after the effective date of this amendatory Act.
(Source: P.A. 90-32, eff. 6-27-97; 91-685, eff. 1-26-00.)
(40 ILCS 5/7-157) (from Ch. 108 1/2, par. 7-157)
Sec. 7-157. Surviving spouse annuities - marriage to
terminate. If a any surviving spouse annuitant marries,
before reaching age 55, the annuity shall be terminated as of
the end of the calendar month following the month in which
the marriage occurs, unless the marriage occurs after
December 31, 2000.
(Source: P.A. 81-618.)
(40 ILCS 5/7-164) (from Ch. 108 1/2, par. 7-164)
Sec. 7-164. Death benefits - Amount. The amount of the
death benefit shall be:
1. Upon the death of an employee with at least one year
of service occurring while in an employment relationship
(including employees drawing disability benefits) with a
participating municipality or participating instrumentality,
an amount equal to the sum of:
(a) The employee's normal, additional and survivor
credits, including interest credited thereto through the
end of the preceding calendar year, but excluding credits
and interest thereon allowed for periods of disability.
(b) An amount equal to the employee's annual final
rate of earnings. An employee who dies as a result of
injuries connected with his duties shall be considered to
have a year of service for purposes of this benefit.
2. Upon the death of an employee with less than 1 year
of service occurring while in the service of any
participating municipality or instrumentality, an amount
equal to the sum of his accumulated normal, additional and
survivor credits on the date of death, excluding those
credits and interest thereon allowed during periods of
disability.
3. Upon the death of an employee who has separated from
service and was not entitled to a retirement annuity on the
date of death, an amount equal to the sum of his accumulated
normal, survivor and additional credits on the date of death
excluding those credits and interest thereon allowed during
periods of disability.
4. Upon the death of an employee in an employment
relationship, or an employee who has service and was entitled
to a retirement annuity on the date of death, when a
surviving spouse or child annuity is awarded, $3,000.
5. Upon the death of an employee, who has separated from
service and was entitled to a retirement annuity on the date
of death, and no surviving spouse or child annuity is
awarded, $3,000 plus an amount equal to his accumulated
normal, survivor and additional credits on the date of death,
excluding those credits and interest earned thereon allowed
during periods of disability.
6. Upon the death of an employee annuitant, $3,000 and,
unless a surviving spouse, child or reversionary annuity is
payable, the sum of (i) the excess of the normal and survivor
credits, excluding those allowed during periods of
disability, which the annuitant had as of the effective date
of his annuity over the total annuities paid pursuant to
paragraph (a) 1 of Section 7-142 to the date of death, plus
(ii) the excess of the additional credits, excluding any such
credits used to create a reversionary annuity, used to
provide the annuity granted pursuant to paragraph (a) 2 of
Section 7-142 over the total annuity payments made pursuant
thereto to the time of death.
7. Upon the death of an annuitant receiving a
reversionary annuity or of a person designated to receive a
reversionary annuity prior to the receipt of such annuity the
sum of the additional credits of the person creating the
reversionary annuity as of the effective date of his own
retirement annuity over the reversionary annuity payments, if
any, made prior to the date of death of such annuitant or
person designated to receive the reversionary annuity.
8. Upon the death of an annuitant receiving a
beneficiary annuity which was effective before January 1,
1986, the excess of the death benefit which was used to
provide the annuity, over the sum of all annuity payments
made to the beneficiary. Upon the death of an annuitant
receiving a beneficiary annuity effective January 1, 1986 or
thereafter, the sum of (i) the excess of the normal and
survivor credits, excluding those allowed during periods of
disability, which the annuitant had as of the effective date
of his annuity over the total annuities paid pursuant to
paragraph (c) of Section 7-165, to date of death, plus (ii)
the excess of the additional credits, excluding any such
credits used to create a reversionary annuity, used to
provide the annuity granted pursuant to paragraph (d) of
Section 7-165 over the total annuity payments made pursuant
thereto to the time of death.
9. Upon the marriage prior to reaching age 55 (except
for a surviving spouse who remarries after December 31, 2000)
or death of a person receiving a surviving spouse annuity,
unless a child annuity is payable, the sum of (i) the excess
of the normal and survivor credits, excluding those credits
and interest thereon allowed during periods of disability,
attributable to the employee at the effective date of the
annuity or date of death, whichever first occurred, over the
total of all annuity payments attributable to paragraph (a) 1
of Section 7-142 made to the employee or surviving spouse
plus (ii) the excess of the additional credits, excluding any
such credits used to create a reversionary annuity or used to
provide the annuity attributable to paragraph (a) 2 of
Section 7-142 over the total of such payments.
10. Upon the marriage, death or attainment of age 18 of
a child receiving a child annuity, if no other child
annuities are payable, the sum of (i) the excess of the
normal and survivor credits excluding those credits and
interest thereon allowed during periods of disability, of the
employee at the effective date of the annuity or date of
death, whichever first occurred, over the total annuity
payments attributable to paragraph (a) 1 of Section 7-142
made to the employee, surviving spouse and children plus (ii)
the excess of the additional credits, excluding any such
credits used to create a reversionary annuity, used to
provide the annuity attributable to paragraph (a) 2 of
Section 7-142 over the total annuity payments made to the
employee, surviving spouse and children, pursuant thereto.
11. Upon the death of the participating employee whose
annuity was suspended upon his return to employment:
a. If a surviving spouse or child annuity is
awarded, $3,000;
b. If no surviving spouse or child annuity is
awarded and he had less than one year's service upon
return, $3,000 plus the excess of the normal, survivor
and additional credits, including interest thereon, but
excluding those allowed during a period of disability, at
the effective date of the suspended annuity, plus those
allowed after his return, over all annuity payments made
to the employee;
c. If no surviving spouse or child annuity is
awarded and he has one year or more of service upon
return, the higher of (a) the payment under subparagraph
b of this paragraph or (b) the payment under paragraph 1
of this Section, taking into consideration only the
service and credits allowed after his return, plus the
excess of the normal, survivor and additional credits,
including interest thereon, excluding those allowed
during periods of disability, at the effective date of
his suspended annuity over all annuity payments made to
the employee.
12. The $3,000 death benefit provided in paragraphs 4
and 6 shall not be payable to beneficiaries of persons who
terminated service prior to September 8, 1971, unless the
payment or agreement for payment provided by Section 7-144.2
of this Article is made prior to the date of death.
13. The increase in certain death benefits from $1,000
to $3,000 provided by this amendatory Act of 1987 shall apply
only to deaths occurring on or after January 1, 1988.
(Source: P.A. 85-941.)
(40 ILCS 5/7-166) (from Ch. 108 1/2, par. 7-166)
Sec. 7-166. Separation benefits - Eligibility.
Separation benefits shall be payable as hereinafter set
forth:
1. Upon separation from the service of all participating
municipalities and instrumentalities thereof and
participating instrumentalities, any participating employee
upon the termination of his participation as a participating
employee who, on the date of application for such benefit, is
not entitled to a retirement annuity shall be entitled to a
separation benefit;
2. Upon separation from the service of all participating
municipalities and instrumentalities thereof and
participating instrumentalities, any participating employee
upon the termination of his participation as a participating
employee who, on the date of application for such benefit, is
entitled to a retirement annuity of less than $30 per month
for life may elect to take a separation benefit in lieu of
the retirement annuity.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-167) (from Ch. 108 1/2, par. 7-167)
Sec. 7-167. Separation benefits - Payment. Separation
benefits shall be paid in the form of a single cash sum as
soon as practicable after receipt by the board of:
1. a written application by the employee for such
benefits; and
2. written notice from the last employing
participating municipality or instrumentality thereof or
participating instrumentality, certifying that such
participating employee has separated from service
terminated his participation.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-184) (from Ch. 108 1/2, par. 7-184)
Sec. 7-184. To determine prior service.
To determine the length of prior service from such
information as is available. Any such determination shall be
conclusive as to any such period of service, unless within 2
years of the issuance of the first individual statement to an
employee, the board reconsiders the case and changes the
determination.
The change to this Section made by this amendatory Act of
the 91st General Assembly applies without regard to whether
the individual is in service on or after the effective date
of this amendatory Act.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-211) (from Ch. 108 1/2, par. 7-211)
Sec. 7-211. Authorizations.
(a) Each participating municipality and instrumentality
thereof and each participating instrumentality shall:
1. Deduct all normal and additional contributions
and contributions for federal Social Security taxes as
required by the Social Security Enabling Act from each
payment of earnings payable to each participating
employee who is entitled to any earnings from such
municipality or instrumentality thereof or participating
instrumentality, and to remit all such contributions
immediately to the board; and
2. Pay to the board contributions required by this
Article.
(b) Each participating employee shall, by virtue of the
payment of contributions to this fund, receive a vested
interest in the annuities and benefits provided in this
Article and in consideration of such vested interest shall be
deemed to have agreed and authorized the deduction from
earnings of all contributions payable to this fund in
accordance with this Article.
(c) Payment of earnings less the amounts of
contributions provided in this Article and in the Social
Security Enabling Act shall be a full and complete discharge
of all claims for payment for services rendered by any
employee during the period covered by any such payment.
(d) Any covered annuitant may authorize the withholding
of all or a portion of his or her annuity, for the payment of
premiums on group accident and health insurance provided
pursuant to Section 7-199.1. The annuitant may revoke this
authorization at any time.
(Source: P.A. 84-812.)
(40 ILCS 5/7-224 new)
Sec. 7-224. Section 415 limitations. Notwithstanding
any other provisions of this Article, the combined benefits
and contributions provided to any participating employee by
all plans of any participating municipality and its
instrumentalities and any participating instrumentality shall
not exceed the limitations specified in Section 415(b), (c),
and (e) of the Internal Revenue Code of 1986. If a
participating employee's benefits or contributions under this
Article, combined with those under any other plan of the
participating municipality and its instrumentalities or
participating instrumentality, would otherwise violate those
limitations, the benefits and contributions under the other
plan shall be reduced, rather than the benefits and
contributions provided under this Article. To the extent
that the other plan fails to limit such benefits and
contributions, that plan shall be disqualified.
(40 ILCS 5/8-125) (from Ch. 108 1/2, par. 8-125)
Sec. 8-125. Annuity.
"Annuity": Equal monthly payments for life, unless
otherwise specified.
For annuities taking effect before January 1, 1998, the
first payment shall be due and payable one month after the
occurrence of the event upon which payment of the annuity
depends, and the last payment shall be due and payable as of
the date of the annuitant's death and shall be prorated from
the date of the last preceding payment to the date of death
for deaths that occur on or before March 31, 2000. All
payments made on or after April 1, 2000 shall be made on the
first day of the calendar month and the last payment shall be
made on the first day of the calendar month in which the
annuity payment period ends. All payments for months
beginning with April of 2000 shall be for the entire calendar
month, without proration. A pro rata amount shall be paid for
that part of the month from the March 2000 annuity payment
date through March 31, 2000.
For annuities taking effect on or after January 1, 1998,
payments shall be made as of the first day of the calendar
month, with the first payment to be made as of the first day
of the calendar month coincidental with or next following the
first day of the annuity payment period, and the last payment
to be made as of the first day of the calendar month in which
the annuity payment period ends. For annuities taking effect
on or after January 1, 1998, all payments shall be for the
entire calendar month, without proration.
For the purposes of this Section, the "annuity payment
period" means the period beginning on the day after the
occurrence of the event upon which payment of the annuity
depends, and ending on the day upon which the death of the
annuitant or other event terminating the annuity occurs.
(Source: P.A. 90-31, eff. 6-27-97.)
(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 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 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% 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 50-51 52-54 55-57 58-60 61-63 64-66 67-69 70 &
Over
30 or
more
years
younger 3.03 2.56 2.18 1.84 1.55 1.29 1.08 0.91
25-29
years
younger 3.16 2.68 2.29 1.94 1.63 1.37 1.15 0.97
20-24
years
younger 3.35 2.85 2.44 2.07 1.75 1.48 1.25 1.06
15-19
years
younger 3.60 3.08 2.65 2.26 1.92 1.63 1.39 1.19
10-14
years
younger 3.96 3.40 2.94 2.53 2.16 1.85 1.59 1.37
5-9
years
younger 4.46 3.84 3.35 2.90 2.51 2.16 1.88 1.64
0-4
years
younger 5.15 4.47 3.93 3.44 3.00 2.61 2.29 2.02
1-5
years
older 6.12 5.36 4.76 4.21 3.71 3.26 2.88 2.56
6-10
years
older 7.48 6.61 5.93 5.30 4.71 4.16 3.70 3.29
11-15
years
older 9.37 8.35 7.58 6.83 6.11 5.40 4.82 4.32
16-20
years
older 11.99 10.78 9.84 8.93 8.02 7.13 6.43 5.87
21-25
years
older 15.59 14.06 12.91 11.82 10.73 9.66 8.88 8.35
26-30
years
older 20.42 18.49 17.15 15.96 14.80 13.65 12.97 12.82
31 or
more
years
older 27.07 24.72 23.34 22.32 21.45 20.62 20.85 23.28
(Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
(40 ILCS 5/8-153) (from Ch. 108 1/2, par. 8-153)
Sec. 8-153. Widow's remarriage marriage to terminate
annuity. A widow's annuity shall terminate when she remarries
if the marriage takes place before the date 60 days after the
effective date of this amendatory Act of the 91st General
Assembly. If a widow remarries 60 or more days after the
effective date of this amendatory Act of the 91st General
Assembly, the widow's annuity shall continue without
interruption.
When a widow dies, if she has not received, in the form
of an annuity, an amount equal to the total credited from
employee's contributions and applied for the widow's annuity,
the difference between such annuity credits and the amount
received by her shall be refunded to her, provided, that if a
reversionary annuity is payable to her, or to any other
person designated by the employee, such amount shall not be
refunded but the reversionary annuity shall be payable. If
there is any child of the employee who is under 18 years of
age, the part of any such amount that is required to pay an
annuity to the child shall be transferred to the child's
annuity reserve. In making refunds under this Section, no
interest shall be paid upon either the total of annuity
payments made or the amounts subject to refund. Any refund
shall be paid according to the provisions of Section 8-170.
A subsequent change in marital status of the widow shall
not effect any restoration of any rights under this Article
except in the case of declaration of invalidity of a
subsequent marriage wherein the declaration of invalidity is
based upon charges of bigamy by the subsequent husband or the
legal disability of the subsequent husband to enter into a
marriage.
(Source: P.A. 83-706.)
(40 ILCS 5/8-171) (from Ch. 108 1/2, par. 8-171)
Sec. 8-171. Refund in lieu of annuity. In lieu of an
annuity, an employee who withdraws and whose annuity would
amount to less than $800 $300 a month for life, may elect to
receive a refund of his accumulated contributions for annuity
purposes, based on the amounts contributed by him.
The widow of any employee, eligible for annuity upon the
death of her husband, whose widow's annuity would amount to
less than $800 $300 a month for life, may, in lieu of widow's
annuity, elect to receive a refund of the accumulated
contributions for annuity purposes, based on the amounts
contributed by her deceased employee husband, but reduced by
any amounts theretofore paid to him in the form of an annuity
or refund out of such accumulated contributions.
Accumulated contributions shall mean the amounts -
including the interest credited thereon - contributed by the
employee for age and service and widow's annuity to the date
of his withdrawal or death, whichever first occurs, including
any amounts contributed for him as salary deductions while
receiving duty disability benefits, and, if not otherwise
included, any accumulations from sums contributed by him and
applied to any pension fund superseded by this fund.
The acceptance of such refund in lieu of widow's annuity,
on the part of a widow, shall not deprive a child or children
of the right to receive a child's annuity as provided for in
Sections 8-158 and 8-159 of this Article, and neither shall
the payment of a child's annuity in the case of such refund
to a widow reduce the amount herein set forth as refundable
to such widow electing a refund in lieu of widow's annuity.
(Source: P.A. 86-1488.)
(40 ILCS 5/8-244) (from Ch. 108 1/2, par. 8-244)
Sec. 8-244. Annuities, etc., exempt.
(a) All annuities, refunds, pensions, and disability
benefits granted under this Article, shall be exempt from
attachment or garnishment process and shall not be seized,
taken, subjected to, detained, or levied upon by virtue of
any judgment, or any process or proceeding whatsoever issued
out of or by any court in this State, for the payment and
satisfaction in whole or in part of any debt, damage, claim,
demand, or judgment against any annuitant, pensioner,
participant, refund applicant, or other beneficiary
hereunder.
(b) No annuitant, pensioner, refund applicant, or other
beneficiary shall have any right to transfer or assign his
annuity, refund, or disability benefit or any part thereof by
way of mortgage or otherwise, except that:
(1) an annuitant or pensioner who elects or has
elected to participate in a non-profit group hospital
care plan or group medical surgical plan may with the
approval of the board and in conformity with its
regulations authorize the board to withhold from the
pension or annuity the current premium for such coverage
and pay such premium to the organization underwriting
such plan;
(2) in the case of refunds, a participant may
pledge by assignment, power of attorney, or otherwise, as
security for a loan from a legally operating credit union
making loans only to participants in certain public
employee pension funds described in the Illinois Pension
Code, all or part of any refund which may become payable
to him in the event of his separation from service; and
(3) the board, in its discretion, may pay to the
wife of any annuitant, pensioner, refund applicant, or
disability beneficiary, such an amount out of her
husband's annuity pension, refund, or disability benefit
as any court of competent jurisdiction may order, or such
an amount as the board may consider necessary for the
support of his wife or children, or both in the event of
his disappearance or unexplained absence or of his
failure to support such wife or children.
(c) The board may retain out of any future annuity,
pension, refund or disability benefit payments, such amount,
or amounts, as it may require for the repayment of any moneys
paid to any annuitant, pensioner, refund applicant, or
disability beneficiary through misrepresentation, fraud or
error. Any such action of the board shall relieve and
release the board and the fund from any liability for any
moneys so withheld.
(d) Whenever an annuity or disability benefit is payable
to a minor or to a person certified by a medical doctor
adjudged to be under legal disability, the board, in its
discretion and when it is in to the best interest of the
person concerned, may waive guardianship proceedings and pay
the annuity or benefit to the person providing or caring for
the minor or and to the wife, parent or blood relative
providing or caring for the person under legal disability.
In the event that a person certified by a medical doctor
to be under legal disability (i) has no spouse, blood
relative, or other person providing or caring for him or
her, (ii) has no guardian of his or her estate, and (iii) is
confined to a Medicare approved, State certified nursing home
or to a publicly owned and operated nursing home, hospital,
or mental institution, the Board may pay any benefit due that
person to the nursing home, hospital, or mental institution,
to be used for the sole benefit of the person under legal
disability.
Payment in accordance with this subsection to a person,
nursing home, hospital, or mental institution for the benefit
of a minor or person under legal disability shall be an
absolute discharge of the Fund's liability with respect to
the amount so paid. Any person, nursing home, hospital, or
mental institution accepting payment under this subsection
shall notify the Fund of the death or any other relevant
change in the status of the minor or person under legal
disability.
(Source: P.A. 86-1488.)
(40 ILCS 5/9-149) (from Ch. 108 1/2, par. 9-149)
Sec. 9-149. Widow's remarriage marriage to terminate
annuity. A widow's annuity shall terminate when she
remarries if the marriage takes place before the date 60 days
after the effective date of this amendatory Act of the 91st
General Assembly. If a widow remarries 60 or more days after
the effective date of this amendatory Act of the 91st General
Assembly, the widow's annuity shall continue without
interruption.
When a widow dies, if she has not received, in the form
of an annuity, an amount equal to the total sums accumulated
and credited from the employee's contributions and applied
for the widow's annuity, the difference between such
accumulated annuity credits and the amount received by her in
annuity payments shall be refunded to her; provided that if a
reversionary annuity is payable to her or to any other person
designated by the employee, this such aforesaid amount shall
not be refunded, but the reversionary annuity shall be
payable.
(Source: P.A. 81-1536.)
(40 ILCS 5/9-194) (from Ch. 108 1/2, par. 9-194)
Sec. 9-194. To invest the reserves. To invest the
reserves of the fund in accordance with Sections 1-109,
1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115 of this Act.
Investments made in accordance with Section 1-113 shall be
deemed to be prudent the provisions set forth in Section
1-113 of this Act.
The retirement board may sell any security held by it at
any time it deems it desirable.
The board may enter into agreements and execute 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 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 savings and loan association or 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.
(Source: P.A. 82-960.)
(40 ILCS 5/11-124) (from Ch. 108 1/2, par. 11-124)
Sec. 11-124. Annuity.
"Annuity": Equal monthly payments for life, unless
terminated earlier under Section 11-148, 11-152, 11-153, or
11-230.
For annuities taking effect before January 1, 1998, the
first payment shall be due and payable one month after the
occurrence of the event upon which payment of the annuity
depends. Until August 1, 1999, and payment shall be made
for any part of a monthly period in which death of the
annuitant occurs. Beginning August 1, 1999, all payments
shall be made on the first day of the calendar month and
shall be for the entire calendar month, without proration.
The last payment shall be made on the first day of the
calendar month in which the annuity payment period ends. A
pro rata amount shall be paid for that part of the month from
the July 1999 annuity payment date through July 31, 1999.
For annuities taking effect on or after January 1, 1998,
payments shall be made as of the first day of the calendar
month, with the first payment to be made as of the first day
of the calendar month coincidental with or next following the
first day of the annuity payment period, and the last payment
to be made as of the first day of the calendar month in which
the annuity payment period ends. For annuities taking effect
on or after January 1, 1998, all payments shall be for the
entire calendar month, without proration.
For the purposes of this Section, the "annuity payment
period" means the period beginning on the day after the
occurrence of the event upon which payment of the annuity
depends, and ending on the day upon which the death of the
annuitant or other event terminating the annuity occurs.
(Source: P.A. 90-31, eff. 6-27-97.)
(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 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 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% 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 50-51 52-54 55-57 58-60 61-63 64-66 67-69 70 &
Over
30 or
more
years
younger 3.03 2.56 2.18 1.84 1.55 1.29 1.08 0.91
25-29
years
younger 3.16 2.68 2.29 1.94 1.63 1.37 1.15 0.97
20-24
years
younger 3.35 2.85 2.44 2.07 1.75 1.48 1.25 1.06
15-19
years
younger 3.60 3.08 2.65 2.26 1.92 1.63 1.39 1.19
10-14
years
younger 3.96 3.40 2.94 2.53 2.16 1.85 1.59 1.37
5-9
years
younger 4.46 3.84 3.35 2.90 2.51 2.16 1.88 1.64
0-4
years
younger 5.15 4.47 3.93 3.44 3.00 2.61 2.29 2.02
1-5
years
older 6.12 5.36 4.76 4.21 3.71 3.26 2.88 2.56
6-10
years
older 7.48 6.61 5.93 5.30 4.71 4.16 3.70 3.29
11-15
years
older 9.37 8.35 7.58 6.83 6.11 5.40 4.82 4.32
16-20
years
older 11.99 10.78 9.84 8.93 8.02 7.13 6.43 5.87
21-25
years
older 15.59 14.06 12.91 11.82 10.73 9.66 8.88 8.35
26-30
years
older 20.42 18.49 17.15 15.96 14.80 13.65 12.97 12.82
31 or
more
years
older 27.07 24.72 23.34 22.32 21.45 20.62 20.85 23.28
(Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
(40 ILCS 5/11-148) (from Ch. 108 1/2, par. 11-148)
Sec. 11-148. Widow's remarriage to terminate annuity. A
widow's annuity shall terminate when she remarries if the
marriage takes place before the date 60 days after the
effective date of this amendatory Act of the 91st General
Assembly. If a widow remarries 60 or more days after the
effective date of this amendatory Act of the 91st General
Assembly, the widow's annuity shall continue without
interruption.
When a widow dies, if she has not received, in the form
of an annuity, an amount equal to the total sum accumulated
to his credit from employee's contributions and applied for
the widow's annuity, the difference between such accumulated
annuity credits and the amount received by her in annuity
payments shall be refunded to her, provided, that if a
reversionary annuity is payable if to her, or to any other
person designated by the employee, such aforesaid amount
shall not be refunded but the reversionary annuity shall be
payable. If there is any child of the employee who is under
18 years of age, the part of any such amount that is required
to pay an annuity to the child shall be transferred to the
child's annuity reserve. In making refunds under this
Section, no interest shall be paid upon either the total of
annuity payments made or the amounts subject to refund. Any
refund shall be paid according to the provisions of Section
11-166.
A subsequent change in marital status of the widow shall
not affect any restoration of any rights under this Article
except in the case of declaration of invalidity of a
subsequent marriage wherein the declaration of invalidity is
based upon charges of bigamy by the subsequent husband or the
legal disability of the subsequent husband to enter into a
marriage.
(Source: P.A. 83-706.)
(40 ILCS 5/11-167) (from Ch. 108 1/2, par. 11-167)
Sec. 11-167. Refunds in lieu of annuity. In lieu of an
annuity, an employee who withdraws, and whose annuity would
amount to less than $800 $300 a month for life may elect to
receive a refund of the total sum accumulated to his credit
from employee contributions for annuity purposes.
The widow of any employee, eligible for annuity upon the
death of her husband, whose annuity would amount to less than
$800 $300 a month for life, may, in lieu of a widow's
annuity, elect to receive a refund of the accumulated
contributions for annuity purposes, based on the amounts
contributed by her deceased employee husband, but reduced by
any amounts theretofore paid to him in the form of an annuity
or refund out of such accumulated contributions.
Accumulated contributions shall mean the amounts
including interest credited thereon contributed by the
employee for age and service and widow's annuity to the date
of his withdrawal or death, whichever first occurs, and
including the accumulations from any amounts contributed for
him as salary deductions while receiving duty disability
benefits; provided that such amounts contributed by the city
after December 31, 1983 while the employee is receiving duty
disability benefits.
The acceptance of such refund in lieu of widow's annuity,
on the part of a widow, shall not deprive a child or children
of the right to receive a child's annuity as provided for in
Sections 11-153 and 11-154 of this Article, and neither shall
the payment of a child's annuity in the case of such refund
to a widow reduce the amount herein set forth as refundable
to such widow electing a refund in lieu of widow's annuity.
(Source: P.A. 90-655, eff. 7-30-98.)
(40 ILCS 5/11-181) (from Ch. 108 1/2, par. 11-181)
Sec. 11-181. Board created. A board of 8 members shall
constitute the 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 persons appointed and 2 employees and one
annuitant elected in the manner hereinafter prescribed.
The appointed members of the board shall be appointed as
follows:
One member shall be appointed by the comptroller of the
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 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
appointed by the civil service commission or the Department
of Personnel of the city from among employees of the 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 elected
in 1999 shall be deemed to have been elected for a 3-year
2-year term ending on December 1, 2002. Thereafter, the
annuitant member shall be elected for a 3-year term ending on
December 1st of the third year following the election 1st of
the next odd-numbered year.
(Source: P.A. 90-766, eff. 8-14-98.)
(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 3 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, 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 3 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. 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. 90-766, eff. 8-14-98.)
(40 ILCS 5/11-223) (from Ch. 108 1/2, par. 11-223)
Sec. 11-223. Annuities, etc., exempt.
(a) All annuities, refunds, pensions, and disability
benefits granted under this Article shall be exempt from
attachment or garnishment process and shall not be seized,
taken, subjected to, detained, or levied upon by virtue of
any judgment, or any process or proceeding whatsoever issued
out of or by any court in this State, for the payment and
satisfaction in whole or in part of any debt, damage, claim,
demand, or judgment against any annuitant, participant,
refund applicant, or other beneficiary hereunder.
No annuitant, refund applicant, or other beneficiary may
transfer or assign his annuity, refund, or disability benefit
or any part thereof by way of mortgage or otherwise, except
as provided in Section 11-223.1, and except in the case of
refunds, when a participant has pledged by assignment, power
of attorney, or otherwise, as security for a loan from a
legally operating credit union making loans only to
participants in certain public employee pension funds
described in the Illinois Pension Code, all or part of any
refund which may become payable to him in the event of his
separation from service. The board in its discretion may,
however, pay to the wife or to the unmarried child under 18
years of age of any annuitant, refund applicant, or
disability beneficiary, such an amount out of her husband's
annuity refund, or disability benefit as any court may order,
or such an amount as the board may consider necessary for the
support of his wife or children or both in the event of his
disappearance or unexplained absence or of his failure to
support such wife or children.
(b) The board may retain out of any future annuity,
refund, or disability benefit payments, such amount, or
amounts as it may require for the repayment of any moneys
paid to any annuitant, pensioner, refund applicant, or
disability beneficiary through misrepresentation, fraud or
error. Any such action of the board shall relieve and
release the board and the fund from any liability for any
moneys so withheld.
(c) Whenever an annuity or disability benefit is payable
to a minor or to a person certified by a medical doctor
adjudged to be under legal disability, the board, in its
discretion and when it is in to the best interest of the
person concerned, may waive guardianship or conservatorship
proceedings and pay the annuity or benefit to the person
providing or caring for the minor or and to the wife, parent
or blood relative providing or caring for the person under
legal disability.
In the event that a person certified by a medical doctor
to be under legal disability (i) has no spouse, blood
relative, or other person providing or caring for him or
her, (ii) has no guardian of his or her estate, and (iii) is
confined to a Medicare approved, State certified nursing home
or to a publicly owned and operated nursing home, hospital,
or mental institution, the Board may pay any benefit due that
person to the nursing home, hospital, or mental institution,
to be used for the sole benefit of the person under legal
disability.
Payment in accordance with this subsection to a person,
nursing home, hospital, or mental institution for the benefit
of a minor or person under legal disability shall be an
absolute discharge of the Fund's liability with respect to
the amount so paid. Any person, nursing home, hospital, or
mental institution accepting payment under this subsection
shall notify the Fund of the death or any other relevant
change in the status of the minor or person under legal
disability.
(d) Whenever an annuitant, applicant for refund or
disability beneficiary disappears and his whereabouts are
unknown, and it cannot be ascertained that he is alive, there
shall be paid to his wife or children or both such amount as
will not be in excess of the amount payable to them in the
event such annuitant, applicant for refund or disability
beneficiary had died on the date of disappearance. If he
returns, or upon satisfactory proof of his being alive, the
amount theretofore paid to such beneficiaries shall be
charged against any moneys payable to him under this Article
as though such payment to such beneficiaries had been an
allowance to them out of the moneys payable to the employee
as an annuitant, applicant for refund or disability
beneficiary.
(Source: P.A. 83-706.)
(40 ILCS 5/13-303) (from Ch. 108 1/2, par. 13-303)
Sec. 13-303. Reversionary annuity.
(a) An employee, prior to retirement on annuity, may
elect 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, parents,
children, brothers or sisters. The election may 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
retirement shall automatically void the election.
(b) The death of the designated reversionary annuitant
prior to the employee's retirement shall automatically void
the election, but, if death of the designated reversionary
annuitant occurs after retirement, the reduced annuity being
paid to the retired employee annuitant shall remain unchanged
and no reversionary annuity shall be payable.
No reversionary annuity shall be paid if the employee
dies before the expiration of 730 days from the date the
written designation was filed with the board, even though the
employee retired and was receiving a reduced annuity.
(c) An employee exercising this option shall not reduce
the annuity by more than 25%, nor elect to provide a
reversionary annuity of less than $100 per month. No such
option shall be permitted if the reversionary annuity for a
surviving spouse, when added to the surviving spouse's
annuity payable under this Article, exceeds 85% of the
reduced annuity payable to the employee.
(d) A reversionary annuity shall begin on the day
following the death of the annuitant, with the first payment
due and payable one month later, and shall continue monthly
thereafter until the death of the reversionary annuitant.
(e) The increases in annuity provided in Section
13-302(d) shall, as to an employee so electing a reduced
annuity, relate to the amount of reduced annuity, and such
lesser amount shall constitute the annuity on which such
increases shall be based.
(f) For determining the actuarial value under this
option of the employee's annuity and the reversionary
annuity, the Fund shall use an actuarial table recommended by
the Fund's actuarial consultant and approved by the Board of
Trustees the following actuarial table shall be used: "1951
Group Annuity Male Table of Mortality," set back 5 years for
employees, with 3% interest.
(Source: P.A. 87-794.)
(40 ILCS 5/13-309) (from Ch. 108 1/2, par. 13-309)
Sec. 13-309. Duty disability benefit.
(a) Any employee who becomes disabled, which disability
is the result of an injury or illness compensable under the
Illinois Workers' Compensation Act or the Illinois Workers'
Occupational Diseases Act, is entitled to a duty disability
benefit during the period of disability for which the
employee does not receive any part of salary, or any part of
a retirement annuity under this Article; except that in the
case of an employee who first enters service on or after the
effective date of this amendatory Act of 1997, a duty
disability benefit is not payable for the first 3 days of
disability that would otherwise be payable under this Section
if the disability does not continue for at least 11
additional days. This benefit shall be 75% of salary at the
date disability begins. However, if the disability in any
measure resulted from any physical defect or disease which
existed at the time such injury was sustained or such illness
commenced, the duty disability benefit shall be 50% of
salary.
Unless the employer acknowledges that the disability is a
result of injury or illness compensable under the Workers'
Compensation Act or the Workers' Occupational Diseases Act,
the duty disability benefit shall not be payable until the
issue of compensability under those Acts is finally
adjudicated. The period of disability shall be as determined
by the Illinois Industrial Commission or acknowledged by the
employer.
The first payment shall be made not later than one month
after the benefit is granted, and subsequent payments shall
be made at least monthly. The Board shall by rule prescribe
for the payment of such benefits on the basis of the amount
of salary lost during the period of disability.
(b) The benefit shall be allowed only if the following
requirements are met by the employee:
(1) Application is made to the Board within 90 days
from the date disability begins;
(2) A medical report is submitted by at least one
licensed and practicing physician as part of the
employee's application; and
(3) The employee is examined by at least one
licensed and practicing physician appointed by the Board
and found to be in a disabled physical condition, and
shall be re-examined at least annually thereafter during
the continuance of disability. The employee need not be
re-examined by a licensed and practicing physician if the
attorney for the district certifies in writing that the
employee is entitled to receive compensation under the
Workers' Compensation Act or the Workers' Occupational
Diseases Act.
(c) The benefit shall terminate when:
(1) The employee returns to work or receives a
retirement annuity paid wholly or in part under this
Article;
(2) The disability ceases;
(3) The employee attains age 65, but if the
employee becomes disabled at age 60 or later, benefits
may be extended for a period of no more than 5 years
after disablement;
(4) The employee (i) refuses to submit to
reasonable examinations by physicians or other health
professionals appointed by the Board, (ii) fails or
refuses to consent to and sign an authorization allowing
the Board to receive copies of or to examine the
employee's medical and hospital records, or (iii) fails
or refuses to provide complete information regarding any
other employment for compensation he or she has received
since becoming disabled; or
(5) The employee willfully and continuously refuses
to follow accept medical advice and treatment to enable
the employee to return to work. However this provision
does not apply to an employee who relies in good faith on
treatment by prayer through spiritual means alone in
accordance with the tenets and practice of a recognized
church or religious denomination, by a duly accredited
practitioner thereof.
In the case of a duty disability recipient who returns to
work, the employee must make application to the Retirement
Board within 2 years from the date the employee last received
duty disability benefits in order to become again entitled to
duty disability benefits based on the injury for which a duty
disability benefit was theretofore paid.
(Source: P.A. 90-12, eff. 6-13-97.)
(40 ILCS 5/13-310) (from Ch. 108 1/2, par. 13-310)
Sec. 13-310. Ordinary disability benefit.
(a) Any employee who becomes disabled as the result of
any cause other than injury or illness incurred in the
performance of duty for the employer or any other employer,
or while engaged in self-employment activities, shall be
entitled to an ordinary disability benefit. The eligible
period for this benefit shall be 25% of the employee's total
actual service prior to the date of disability with a
cumulative maximum period of 5 years.
(b) The benefit shall be allowed only if the employee
files an application in writing with the Board, and a medical
report is submitted by at least one licensed and practicing
physician as part of the employee's application.
The benefit is not payable for any disability which
begins during any period of unpaid leave of absence. No
benefit shall be allowed for any period of disability prior
to 30 days before application is made, unless the Board finds
good cause for the delay in filing the application. The
benefit shall not be paid during any period for which the
employee receives or is entitled to receive any part of
salary.
The benefit is not payable for any disability which
begins during any period of absence from duty other than
allowable vacation time in any calendar year. An employee
whose disability begins during any such ineligible period of
absence from service may not receive benefits until the
employee recovers from the disability and is in service for
at least 15 consecutive working days after such recovery.
In the case of an employee who first enters service on or
after the effective date of this amendatory Act of 1997, an
ordinary disability benefit is not payable for the first 3
days of disability that would otherwise be payable under this
Section if the disability does not continue for at least 11
additional days.
(c) The benefit shall be 50% of the employee's salary at
the date of disability, and shall terminate when the earliest
of the following occurs:
(1) The employee returns to work or receives a
retirement annuity paid wholly or in part under this
Article;
(2) The disability ceases;
(3) The employee willfully and continuously refuses
to follow medical advice and treatment to enable the
employee to return to work. However this provision does
not apply to an employee who relies in good faith on
treatment by prayer through spiritual means alone in
accordance with the tenets and practice of a recognized
church or religious denomination, by a duly accredited
practitioner thereof (Blank);
(4) The employee (i) refuses to submit to a
reasonable physical examination within 30 days of
application by a physician appointed by the Board, (ii)
or in the case of chronic alcoholism, the employee
refuses to join a rehabilitation program licensed by the
Department of Public Health of the State of Illinois, and
certified by the Joint Commission on the Accreditation of
Hospitals, (iii) fails or refuses to consent to and sign
an authorization allowing the Board to receive copies of
or to examine the employee's medical and hospital
records, or (iv) fails or refuses to provide complete
information regarding any other employment for
compensation he or she has received since becoming
disabled; or
(5) The eligible period for this benefit has been
exhausted.
The first payment of the benefit shall be made not later
than one month after the same has been granted, and
subsequent payments shall be made at intervals of not more
than 30 days.
(Source: P.A. 90-12, eff. 6-13-97.)
(40 ILCS 5/13-311) (from Ch. 108 1/2, par. 13-311)
Sec. 13-311. Credit for Workers' Compensation payments.
If an employee, or an employee's spouse or children, receives
compensation under any workers' compensation or occupational
diseases law, the surviving spouse's or child's annuity or
the disability benefit payable under this Article shall be
reduced by the amount of the compensation so received if the
amount is less than the annuity or benefit. If the
compensation exceeds the annuity or benefit, no payment of
annuity or benefit shall be made until the period of time has
elapsed when the annuity or benefit payable at the rates
provided in this Article equals the amount of such
compensation. However, the commutation of compensation to a
lump sum basis as provided in the workers' compensation or
occupational diseases law shall not increase the annuity or
benefit provided under this Article; the annuity or benefit
to be paid hereunder shall be based on the amount of
compensation awarded under such laws prior to commutation of
such compensation. No interest shall be considered in these
calculations.
(Source: P.A. 87-794.)
(40 ILCS 5/13-314) (from Ch. 108 1/2, par. 13-314)
Sec. 13-314. Alternative provisions for Water
Reclamation District commissioners.
(a) Transfer of credits. Any Water Reclamation District
commissioner elected by vote of the people and who has
elected to participate in this Fund may transfer to this Fund
credits and creditable service accumulated under any other
pension fund or retirement system established under Articles
2 through 18 of this Code, upon payment to the Fund of (1)
the amount by which the employer and employee contributions
that would have been required if he had participated in this
Fund during the period for which credit is being transferred,
plus interest, exceeds the amounts actually transferred from
such other fund or system to this Fund, plus (2) interest
thereon at 6% per year compounded annually from the date of
transfer to the date of payment.
(b) Alternative annuity. Any participant commissioner
may elect to establish alternative credits for an alternative
annuity by electing in writing to make additional optional
contributions in accordance with this Section and procedures
established by the Board. Such commissioner may discontinue
making the additional optional contributions by notifying the
fund in writing in accordance with this Section and
procedures established by the Board.
Additional optional contributions for the alternative
annuity shall be as follows:
(1) For service after the option is elected, an
additional contribution of 3% of salary shall be
contributed to the Fund on the same basis and under the
same conditions as contributions required under Section
13-502.
(2) For contributions on past service before the
option is elected, the additional contribution shall be
3% of the salary for the applicable period of service,
plus interest at the annual rate from time to time as
determined by the Board, compounded annually from the
date of service to the date of payment. Contributions
for service before the option is elected may be made in a
lump sum payment to the Fund or by contributing to the
Fund on the same basis and under the same conditions as
contributions required under Section 13-502. All
payments for past service must be paid in full before
credit is given. No additional optional contributions
may be made for any period of service for which credit
has been previously forfeited by acceptance of a refund,
unless the refund is repaid in full with interest at the
rate specified in Section 13-603, from the date of refund
to the date of repayment.
In lieu of the retirement annuity otherwise payable under
this Article, any commissioner who has elected to participate
in the Fund and make additional optional contributions in
accordance with this Section, has attained age 55, and has at
least 6 years of service credit, may elect to have the
retirement annuity computed as follows: 3% of the
participant's average final salary as a commissioner for each
of the first 8 years of service credit, plus 4% of such
salary for each of the next 4 years of service credit, plus
5% of such salary for each year of service credit in excess
of 12 years, subject to a maximum of 80% of such salary. To
the extent such commissioner has made additional optional
contributions with respect to only a portion of years of
service credit, the retirement annuity will first be
determined in accordance with this Section to the extent such
additional optional contributions were made, and then in
accordance with the remaining Sections of this Article to the
extent of years of service credit with respect to which
additional optional contributions were not made. The change
in minimum retirement age (from 60 to 55) made by this
amendatory Act of 1993 applies to persons who begin receiving
a retirement annuity under this Section on or after the
effective date of this amendatory Act, without regard to
whether they are in service on or after that date.
(c) Disability benefits. In lieu of the disability
benefits otherwise payable under this Article, any
commissioner who (1) has elected to participate in the Fund,
and (2) has become permanently disabled and as a consequence
is unable to perform the duties of office, and (3) was making
optional contributions in accordance with this Section at the
time the disability was incurred, may elect to receive a
disability annuity calculated in accordance with the formula
in subsection (b). For the purposes of this subsection, such
commissioner shall be considered permanently disabled only
if: (i) disability occurs while in service as a commissioner
and is of such a nature as to prevent the reasonable
performance of the duties of office at the time; and (ii) the
Board has received a written certification by at least 2
licensed physicians appointed by it stating that such
commissioner is disabled and that the disability is likely to
be permanent.
(d) Alternative survivor's benefits. In lieu of the
survivor's benefits otherwise payable under this Article, the
spouse or eligible child of any deceased commissioner who (1)
had elected to participate in the Fund, and (2) was either
making additional optional contributions on the date of
death, or was receiving an annuity calculated under this
Section at the time of death, may elect to receive an annuity
beginning on the date of the commissioner's death, provided
that the spouse and commissioner must have been married on
the date of the last termination of a service as commissioner
and for a continuous period of at least one year immediately
preceding death.
The annuity shall be payable beginning on the date of the
commissioner's death if the spouse is then age 50 or over, or
beginning at age 50 if the age of the spouse is less than 50
years. If a minor unmarried child or children of the
commissioner, under age 18, also survive, and the child or
children are under the care of the eligible spouse, the
annuity shall begin as of the date of death of the
commissioner without regard to the spouse's age.
The annuity to a spouse shall be 66 2/3% of the amount of
retirement annuity earned by the commissioner on the date of
death, subject to a minimum payment of 10% of salary,
provided that if an eligible spouse, regardless of age, has
in his or her care at the date of death of the commissioner
any unmarried child or children of the commissioner under age
18, the minimum annuity shall be 30% of the commissioner's
salary, plus 10% of salary on account of each minor child of
the commissioner, subject to a combined total payment on
account of a spouse and minor children not to exceed 50% of
the deceased commissioner's salary. In the event there shall
be no spouse of the commissioner surviving, or should a
spouse die while eligible minor children still survive the
commissioner, each such child shall be entitled to an annuity
equal to 20% of salary of the commissioner subject to a
combined total payment on account of all such children not to
exceed 50% of salary of the commissioner. The salary to be
used in the calculation of these benefits shall be the same
as that prescribed for determining a retirement annuity as
provided in subsection (b) of this Section.
Upon the death of a commissioner occurring after
termination of a service or while in receipt of a retirement
annuity, the combined total payment to a spouse and minor
children, or to minor children alone if no eligible spouse
survives, shall be limited to 75% of the amount of retirement
annuity earned by the commissioner.
Adopted children shall have status as natural children of
the commissioner only if the proceedings for adoption were
commenced at least one year prior to the date of the
commissioner's death.
Marriage of a child or attainment of age 18, whichever
first occurs, shall render the child ineligible for further
consideration in the payment of annuity to a spouse or in the
increase in the amount thereof. Upon attainment of
ineligibility of the youngest minor child of the
commissioner, the annuity shall immediately revert to the
amount payable upon death of a commissioner leaving no minor
children surviving. If the spouse is under age 50 at such
time, the annuity as revised shall be deferred until such age
is attained.
(e) Refunds. Refunds of additional optional
contributions shall be made on the same basis and under the
same conditions as provided under Section 13-601. Interest
shall be credited on the same basis and under the same
conditions as for other contributions.
Optional contributions shall be accounted for in a
separate Commission's Optional Contribution Reserve.
Optional contributions under this Section shall be included
in the amount of employee contributions used to compute the
tax levy under Section 13-503.
(f) Effective date. The effective date of this plan of
optional alternative benefits and contributions shall be the
date upon which approval was received from the U.S. Internal
Revenue Service. The plan of optional alternative benefits
and contributions shall not be available to any former
employee receiving an annuity from the Fund on the effective
date, unless said former employee re-enters service and
renders at least 3 years of additional service after the date
of re-entry as a commissioner.
(Source: P.A. 90-12, eff. 6-13-97.)
(40 ILCS 5/13-603) (from Ch. 108 1/2, par. 13-603)
Sec. 13-603. Restoration of rights. If an employee who
has received a refund subsequently re-enters the service and
renders one year of contributing service from the date of
such re-entry, the employee shall be entitled to have
restored all accumulation and service credits previously
forfeited by making a repayment of the refund, including
interest of 8% per annum from the date of the refund to the
date of repayment at a rate equal to the higher of 8% per
annum or the actuarial investment return assumption used in
the Fund's most recent Annual Actuarial Statement. Repayment
may be made either directly to the Fund or in a manner
similar to that provided for the contributions required under
Section 13-502. The repayment must be made in a lump sum.
The service credits represented thereby, or any part thereof,
shall not become effective unless the full amount due has
been paid by the employee, including interest. If the
employee fails to make a full repayment, any partial amounts
paid by the employee shall be refunded without interest if
the employee dies in service or withdraws.
(Source: P.A. 87-794.)
(40 ILCS 5/14-118) (from Ch. 108 1/2, par. 14-118)
Sec. 14-118. Widow's annuity - Conditions for payment.
A widow who exercises the right of election to receive an
annuity pursuant to this Section is entitled to a lump sum
payment of $500 plus a widow's annuity, if:
(1) she was married to the deceased member:
(i) in the case of a member who dies before
the effective date of this amendatory Act of the
91st General Assembly, for at least one 1 year prior
to his death or retirement, whichever first occurs,
and also on the day of the last termination of his
service as a State employee; or
(ii) in the case of a member who dies on or
after the effective date of this amendatory Act of
the 91st General Assembly, for at least one year
immediately prior to the date of death, regardless
of the date of withdrawal;
(2) the deceased member had at least 8 years of
creditable service if death occurred while in service, or
while on leave of absence from service, or while in
receipt of a nonoccupational disability or occupational
disability benefit, or after retirement;
(3) she was nominated exclusively to receive the
entire death benefit payable under this Article;
(4) death of the member occurred after withdrawal,
and he had fulfilled the prescribed age and service
conditions for establishing a right in a retirement
annuity; and
(5) she elected to receive the widow's annuity
within 6 months from the date of death of the employee,
otherwise the survivors annuity if applicable, shall be
payable.
If a widow's annuity beneficiary becomes entitled to a
survivors annuity and a widow's annuity, she shall elect to
receive only one of such annuities.
The surviving spouse of a person who (1) died on or after
January 1, 1985, (2) withdrew from service prior to August 1,
1953, (3) was receiving an annuity from the system at the
time of death, and (4) meets all other requirements of this
Section, shall be entitled to the benefits provided under
this Section.
A widow's annuity shall be payable beginning on the first
of the month following the date of death of the member if the
widow has then attained age 50 or, if she is under age 50 on
such date, on the first of the month following her attainment
of such age; provided, that if an unmarried child or children
of the member under age 18 (or under age 22 if a full-time
student) also survive him, and the child or children are
under the care of the eligible widow, the widow's annuity
shall begin on the first of the month following the member's
death without regard to the age of the widow. If she is
under age 50 at the death of the member and she qualifies for
a widow's annuity, she is entitled to receive the lump sum
payment immediately upon application, but payment of the
widow's annuity shall be deferred as provided above.
The provision for a widow's annuity shall not be
construed to affect the payment of a reversionary annuity.
If a widow qualifies for more than one widow's annuity, or
for a widow's annuity and a survivors annuity, she shall
elect to receive only one of such annuities.
This Section shall not apply to the widow of any male
person who first became a member after July 19, 1961.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/14-120) (from Ch. 108 1/2, par. 14-120)
Sec. 14-120. Survivors annuities - Conditions for
payments. A survivors annuity is established for all members
of the System. Upon the death of any male person who was a
member on July 19, 1961, however, his widow may have the
option of receiving the widow's annuity provided in this
Article, in lieu of the survivors annuity.
(a) A survivors annuity beneficiary, as herein defined,
is eligible for a survivors annuity if the deceased member
had completed at least 1 1/2 years of contributing creditable
service if death occurred:
(1) while in service;
(2) while on an approved or authorized leave of
absence from service, not exceeding one year
continuously; or
(3) while in receipt of a non-occupational
disability or an occupational disability benefit.
(b) If death of the member occurs after withdrawal, the
survivors annuity beneficiary is eligible for such annuity
only if the member had fulfilled at the date of withdrawal
the prescribed service conditions for establishing a right in
a retirement annuity.
(c) Payment of the survivors annuity shall begin
immediately if the beneficiary is 50 years or over, or upon
attainment of age 50 if the beneficiary is under that age at
the date of the member's death. In the case of survivors of a
member whose death occurred between November 1, 1970 and July
15, 1971, the payment of the survivors annuity shall begin
upon October 1, 1977, if the beneficiary is then 50 years of
age or older, or upon the attainment of age 50 if the
beneficiary is under that age on October 1, 1977.
If an eligible child or children, under the care of the
spouse also survive the member, the survivors annuity shall
begin immediately without regard to whether the beneficiary
has attained age 50.
Benefits under this Section shall accrue and be payable
for whole calendar months, beginning on the first day of the
month after the initiating event occurs and ending on the
last day of the month in which the terminating event occurs.
(d) A survivor annuity beneficiary means:
(1) A spouse of a member or annuitant if:
(i) in the case of a member or annuitant who
dies before the effective date of this amendatory
Act of the 91st General Assembly, the current
marriage with the member or annuitant was in effect
for at least one year at the date of the member or
annuitant's death or withdrawal, whichever first
occurs; or
(ii) in the case of a member or annuitant who
dies on or after the effective date of this
amendatory Act of the 91st General Assembly, the
current marriage with the member or annuitant was in
effect for at least one year immediately prior to
the date of death, regardless of the date of
withdrawal.
(2) An unmarried child under age 18 (under age 22
if a full-time student) of the member or annuitant; an
unmarried stepchild under age 18 (under age 22 if a
full-time student) who has been such for at least one
year at the date of the member's death or at least one
year at the date of withdrawal, whichever first occurs;
an unmarried adopted child under age 18 (under age 22 if
a full-time student) if the adoption proceedings were
initiated at least one year prior to the death or
withdrawal of the member or annuitant, whichever first
occurs; and an unmarried child over age 18 if he or she
is dependent by reason of a physical or mental
disability, so long as the physical or mental disability
continues. For purposes of this subsection, disability
means inability to engage in any substantial gainful
activity by reason of any medically determinable physical
or mental impairment 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.
(3) A dependent parent of the member or annuitant;
a dependent step-parent by a marriage contracted before
the member or annuitant attained age 18; or a dependent
adopting parent by whom the member or annuitant was
adopted before he or she attained age 18.
(e) Payment of a survivors annuity to a beneficiary
terminates upon: (1) remarriage before age 55 that occurs
before the effective date of this amendatory Act of the 91st
General Assembly or death, if the beneficiary is a spouse;
(2) marriage or death, if the beneficiary is a child; or (3)
remarriage before age 55 or death, if the beneficiary is a
parent. Remarriage of a prospective beneficiary prior to the
attainment of age 50 disqualifies the beneficiary for the
annuity expectancy hereunder, if the remarriage occurs before
the effective date of this amendatory Act of the 91st General
Assembly. Termination due to a marriage or remarriage shall
be permanent, regardless of any future changes in marital
status.
The substantive changes made to this subsection by this
amendatory Act of the 91st General Assembly (pertaining to
remarriage prior to age 55 or 50) apply without regard to
whether the deceased participant or annuitant was in service
on or after the effective date of this amendatory Act.
Any person whose survivors annuity was terminated during
1978 or 1979 due to remarriage at age 55 or over shall be
eligible to apply, not later than July 1, 1990, for a
resumption of that annuity, to begin on July 1, 1990.
(f) The term "dependent" relating to a survivors annuity
means a beneficiary of a survivors annuity who was receiving
from the member at the date of the member's death at least
1/2 of the support for maintenance including board, lodging,
medical care and like living costs.
(g) If there is no eligible spouse surviving the member,
or if a survivors annuity beneficiary includes a spouse who
dies or is disqualified by remarriage remarries, the annuity
is payable to an unmarried child or children. If at the date
of death of the member there is no spouse or unmarried child,
payments shall be made to a dependent parent or parents. If
no eligible survivors annuity beneficiary survives the
member, the non-occupational death benefit is payable in the
manner provided in this Article.
(h) Survivor benefits do not affect any reversionary
annuity.
(i) If a survivors annuity beneficiary becomes entitled
to a widow's annuity or one or more survivors annuities or
both such annuities, the beneficiary shall elect to receive
only one of such annuities.
(j) Contributing creditable service under the State
Universities Retirement System and the Teachers' Retirement
System of the State of Illinois shall be considered in
determining whether the member has met the contributing
service requirements of this Section.
(k) In lieu of the Survivor's Annuity described in this
Section, the spouse of the member has the option to select
the Nonoccupational Death Benefit described in this Article,
provided the spouse is the sole survivor and the sole
nominated beneficiary of the member.
(l) The changes made to this Section and Sections
14-118, 14-119, and 14-128 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; 91-357, eff. 7-29-99.)
(40 ILCS 5/14-128) (from Ch. 108 1/2, par. 14-128)
Sec. 14-128. Occupational death benefit. An
occupational death benefit is provided for a member of the
System whose death, prior to retirement, is the proximate
result of bodily injuries sustained or a hazard undergone
while in the performance and within the scope of the member's
duties.
(a) Conditions for payment.
Exclusive of the lump sum payment provided for herein,
all annuities under this Section shall accrue and be payable
for complete calendar months, beginning on the first day of
the month next following the month in which the initiating
event occurs and ending on the last day of the month in which
the terminating event occurs.
The following named survivors of the member may be
eligible for an annuity under this Section:
(i) The member's spouse.
(ii) An unmarried child of the member under age 18
(under age 22 if a full-time student); an unmarried
stepchild under age 18 (under age 22 if a full-time
student) who has been such for at least one year at the
date of the member's death; an unmarried adopted child
under age 18 (under age 22 if a full-time student) if the
adoption proceedings were initiated at least one year
prior to the death of the member; and an unmarried child
over age 18 who is dependent by reason of a physical or
mental disability, for so long as such physical or mental
disability continues. 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 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.
(iii) If no spouse or eligible children survive: a
dependent parent of the member; a dependent step-parent
by a marriage contracted before the member attained age
18; or a dependent adopting parent by whom the member was
adopted before he or she attained age 18.
The term "dependent" relating to an occupational death
benefit means a survivor of the member who was receiving from
the member at the date of the member's death at least 1/2 of
the support for maintenance including board, lodging, medical
care and like living costs.
Payment of the annuity shall continue until the
occurrence of the following:
(1) remarriage before age 55 that occurs before the
effective date of this amendatory Act of the 91st General
Assembly or death, in the case of a surviving spouse;
(2) attainment of age 18 or termination of
disability, death, or marriage, in the case of an
eligible child;
(3) remarriage before age 55 or death, in the case
of a dependent parent.
If none of the aforementioned beneficiaries is living at
the date of death of the member, no occupational death
benefit shall be payable, but the nonoccupational death
benefit shall be payable as provided in this Article.
The change made to this subsection by this amendatory Act
of the 91st General Assembly (pertaining to remarriage prior
to age 55) applies without regard to whether the deceased
member was in service on or after the effective date of this
amendatory Act.
(b) Amount of benefit.
The member's accumulated contributions plus credited
interest shall be payable in a lump sum to such person as the
member has nominated by written direction, duly acknowledged
and filed with the Board, or if no such nomination to the
estate of the member. When an annuitant is re-employed by a
Department, the accumulated contributions plus credited
interest payable on the member's account shall, if the member
has not previously elected a reversionary annuity, consist of
the excess, if any, of the member's total accumulated
contributions plus credited interest for all creditable
service over the total amount of all retirement annuity
payments received by the member prior to death.
In addition to the foregoing payment, an annuity is
provided for eligible survivors as follows:
(1) If the survivor is a spouse only, the annuity
shall be 50% of the member's final average compensation.
(2) If the spouse has in his or her care an
eligible child or children, the annuity shall be
increased by an amount equal to 15% of the final average
compensation on account of each such child, subject to a
limitation on the combined annuities to a surviving
spouse and children of 75% of final average compensation.
(3) If there is no surviving spouse, or if the
surviving spouse dies or remarries while a child remains
eligible, then each such child shall be entitled to an
annuity of 15% of the deceased member's final average
compensation, subject to a limitation of 50% of final
average compensation to all such children.
(4) If there is no surviving spouse or eligible
children, then an annuity shall be payable to the
member's dependent parents, equal to 25% of final average
compensation to each such beneficiary.
If any annuity payable under this Section is less than
the corresponding survivors annuity, the beneficiary or
beneficiaries of the annuity under this Section may elect to
receive the survivors annuity and the nonoccupational death
benefit provided for in this Article in lieu of the annuity
provided under this Section.
(c) Occupational death claims pending adjudication by
the Industrial Commission or a ruling by the agency
responsible for determining the liability of the State under
the "Workers' Compensation Act" or "Workers' Occupational
Diseases Act" shall be payable under Sections 14-120 and
14-121 the Survivor's Annuity Section of this Article until a
ruling or adjudication occurs, if the beneficiary or
beneficiaries: (1) meet all conditions for payment as
prescribed in this Article; and (2) execute an assignment of
benefits payable as a result of adjudication by the
Industrial Commission or a ruling by the agency responsible
for determining the liability of the State under such Acts.
The assignment shall be made to the System and shall be for
an amount equal to the excess of benefits paid under Sections
14-120 and 14-121 the Survivor's Annuity Section of this
Article over benefits payable as a result of adjudication of
the workers' compensation claim computed from the date of
death of the member.
(d) Every occupational death annuity payable under this
Section shall be increased on each January 1 occurring on or
after (i) January 1, 1990, or (ii) the first anniversary of
the commencement of the annuity, whichever occurs later, by
an amount equal to 3% of the current amount of the annuity,
including any previous increases under this Article, without
regard to whether the deceased member was in service on the
effective date of this amendatory Act of 1991.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
Sec. 14-130. Refunds; rules.
(a) Upon withdrawal a member is entitled to receive,
upon written request, a refund of the member's contributions,
including credits granted while in receipt of disability
benefits, without credited interest. The board, in its
discretion may withhold payment of the refund of a member's
contributions for a period not to exceed 1 year after the
member has ceased to be an employee.
For purposes of this Section, a member will be considered
to have withdrawn from service if a change in, or transfer
of, his position results in his becoming ineligible for
continued membership in this System and eligible for
membership in another public retirement system under this
Act.
(b) A member receiving a refund forfeits and
relinquishes all accrued rights in the System, including all
accumulated creditable service. If the person again becomes
a member of the System and establishes at least 2 years of
creditable service, the member may repay the moneys
previously refunded. However, a former member may restore
credits previously forfeited by acceptance of a refund
without returning to service by applying in writing and
repaying to the System, by April 1, 1993, the amount of the
refund plus regular interest calculated from the date of
refund to the date of repayment.
The repayment of refunds issued prior to January 1, 1984
shall consist of the amount refunded plus 5% interest per
annum compounded annually for the period from the date of the
refund to the end of the month in which repayment is made.
The repayment of refunds issued after January 1, 1984 shall
consist of the amount refunded plus regular interest for the
period from the date of refund to the end of the month in
which repayment is made. However, in the case of a refund
that is repaid in a lump sum between January 1, 1991 and July
1, 1991, repayment shall consist of the amount refunded plus
interest at the rate of 2.5% per annum compounded annually
from the date of the refund to the end of the month in which
repayment is made.
Upon repayment, the member shall receive credit for the
service, member contributions and regular interest that was
forfeited by acceptance of the refund as well as regular
interest for the period of non-membership. Such repayment
shall be made 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.
(b-5) The Board may adopt rules governing the repayment
of refunds and establishment of credits in cases involving
awards of back pay or reinstatement. The rules may authorize
repayment of a refund in installment payments and may waive
the payment of interest on refund amounts repaid in full
within a specified period.
(c) A member no longer in service who is unmarried and
on the date of retirement or who does not have an eligible
survivors annuity beneficiary on the at that date of
application therefor is entitled to a refund of contributions
for widow's annuity or survivors annuity purposes, or both,
as the case may be, without interest. A widow's annuity or
survivors annuity shall not be payable upon the death of a
person who has received this refund, unless prior to that
death the amount of the refund has been repaid to the System,
together with regular interest from the date of the refund to
the date of repayment.
(d) Any member who has service credit in any position
for which an alternative retirement annuity is provided and
in relation to which an increase in the rate of employee
contribution is required, shall be entitled to a refund,
without interest, of that part of the member's employee
contribution which results from that increase in the employee
rate if the member does not qualify for that alternative
retirement annuity at the time of retirement.
(Source: P.A. 90-448, eff. 8-16-97.)
(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
that serves System participants or an officer of a national
teacher organization that serves System participants may
participate in the System and shall be deemed an employee,
provided that (1) the individual has previously earned
creditable service under this Article, (2) the individual
files with the System an irrevocable election to become a
participant, and (3) the individual does not receive credit
for that employment under any other Article of this Code. An
employee under this subsection (i) is responsible for paying
to the System both (A) employee contributions based on the
actual compensation received for service with the teacher
organization and (B) employer contributions equal to the
normal costs (as defined in Section 15-155) resulting from
that service; all or any part of these contributions may be
paid on the employee's behalf or picked up for tax purposes
(if authorized under federal law) by the teacher
organization.
A person who is an employee as defined in this subsection
(i) may establish service credit for similar employment prior
to becoming an employee under this subsection by paying to
the System for that employment the contributions specified in
this subsection, plus interest at the effective rate from the
date of service to the date of payment. However, credit
shall not be granted under this subsection for any such prior
employment for which the applicant received credit under any
other provision of this Code, or during which the applicant
was on a leave of absence under Section 15-113.2.
(Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
90-576, eff. 3-31-98; 90-766, eff. 8-14-98.)
(40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
Sec. 15-111. Earnings. "Earnings": An amount paid for
personal services equal to the sum of the basic compensation
plus extra compensation for summer teaching, overtime or
other extra service. For periods for which an employee
receives service credit under subsection (c) of Section
15-113.1 or Section 15-113.2, earnings are equal to the basic
compensation on which contributions are paid by the employee
during such periods. Compensation for employment which is
irregular, intermittent and temporary shall not be considered
earnings, unless the participant is also receiving earnings
from the employer as an employee under Section 15-107.
With respect to transition pay paid by the University of
Illinois to a person 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:
(1) "Earnings" includes transition pay paid to the
employee on or after the effective date of this
amendatory Act of the 91st General Assembly.
(2) "Earnings" includes transition pay paid to the
employee before the effective date of this amendatory Act
of the 91st General Assembly only if (i) employee
contributions under Section 15-157 have been withheld
from that transition pay or (ii) the employee pays to the
System before January 1, 2001 an amount representing
employee contributions under Section 15-157 on that
transition pay. Employee contributions under item (ii)
may be paid in a lump sum, by withholding from additional
transition pay accruing before January 1, 2001, or in any
other manner approved by the System. Upon payment of the
employee contributions on transition pay, the
corresponding employer contributions become an obligation
of the State.
(Source: P.A. 87-8.)
(40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
Sec. 15-112. Final rate of earnings. "Final rate of
earnings": For an employee who is paid on an hourly basis or
who receives an annual salary in installments during 12
months of each academic year, the average annual earnings
during the 48 consecutive calendar month period ending with
the last day of final termination of employment or the 4
consecutive academic years of service in which the employee's
earnings were the highest, whichever is greater. For any
other employee, the average annual earnings during the 4
consecutive academic years of service in which his or her
earnings were the highest. For an employee with less than 48
months or 4 consecutive academic years of service, the
average earnings during his or her entire period of service.
The earnings of an employee with more than 36 months of
service prior to the date of becoming a participant are, for
such period, considered equal to the average earnings during
the last 36 months of such service. For an employee on leave
of absence with pay, or on leave of absence without pay who
makes contributions during such leave, earnings are assumed
to be equal to the basic compensation on the date the leave
began. For an employee on disability leave, earnings are
assumed to be equal to the basic compensation on the date
disability occurs or the average earnings during the 24
months immediately preceding the month in which disability
occurs, whichever is greater.
For a participant who retires on or after the effective
date of this amendatory Act of 1997 with at least 20 years of
service as a firefighter or police officer under this
Article, the final rate of earnings shall be the annual rate
of earnings received by the participant on his or her last
day as a firefighter or police officer under this Article, if
that is greater than the final rate of earnings as calculated
under the other provisions of this Section.
If a participant is an employee for at least 6 months
during the academic year in which his or her employment is
terminated, the annual final rate of earnings shall be 25% of
the sum of (1) the annual basic compensation for that year,
and (2) the amount earned during the 36 months immediately
preceding that year, if this is greater than the final rate
of earnings as calculated under the other provisions of this
Section.
In the determination of the final rate of earnings for an
employee, that part of an employee's earnings for any
academic year beginning after June 30, 1997, which exceeds
the employee's earnings with that employer for the preceding
year by more than 20 percent shall be excluded; in the event
that an employee has more than one employer this limitation
shall be calculated separately for the earnings with each
employer. In making such calculation, only the basic
compensation of employees shall be considered, without regard
to vacation or overtime or to contracts for summer
employment.
The following are not considered as earnings in
determining final rate of earnings: severance or separation
pay, retirement pay, payment in lieu of unused sick leave and
payments from an employer for the period used in determining
final rate of earnings for any purpose other than services
rendered, leave of absence or vacation granted during that
period, and vacation of up to 56 work days allowed upon
termination of employment under a vacation policy of an
employer which was in effect on or before January 1, 1977.
Intermittent periods of service shall be considered as
consecutive in determining final rate of earnings.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
(40 ILCS 5/15-120) (from Ch. 108 1/2, par. 15-120)
Sec. 15-120. Beneficiary; survivor annuitant under
portable benefit package. "Beneficiary": The person or
persons designated by the participant or annuitant in the
last written designation on file with the board; or if no
person so designated survives, or if no designation is on
file, the estate of the participant or annuitant. Acceptance
by the participant of a refund of accumulated contributions
shall result in cancellation of all beneficiary designations
previously filed. A spouse whose marriage was dissolved shall
be disqualified as beneficiary unless the spouse was
designated as beneficiary after the effective date of the
dissolution of marriage.
After a joint and survivor annuity commences under the
portable benefit package, the survivor annuitant of a joint
and survivor annuity is not disqualified, and may not be
removed, as the survivor annuitant by a dissolution of the
survivor's marriage with the participant or annuitant.
(Source: P.A. 83-1440.)
(40 ILCS 5/15-132.2 new)
Sec. 15-132.2. Retire and retirement. A participant
"retires", and his or her "retirement" begins, when his or
her annuity payment period begins.
(40 ILCS 5/15-134.5)
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) or (d-1).
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.
An eligible employee who fails to make this election
shall, by default, participate in the traditional benefit
package.
(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. A newly eligible employee
participates in the traditional benefit package until he or
she makes an election to participate in the portable benefit
package or the self-managed plan. If an employee does not
elect to participate in the portable benefit package or the
self-managed plan, he or she shall continue to participate in
the traditional benefit package by default.
(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
6 months after the date on which the System receives the
report of status certification from the employer 60 days
after becoming an eligible employee. If an employee elects to
participate in the self-managed plan, no employer
contributions shall be remitted to the self-managed plan when
the employee's account balance transfer is made. Employer
contributions to the self-managed plan shall commence as of
the first pay period that begins after the System receives
the employee's election.
(d-1) A newly eligible employee who, prior to the
effective date of this amendatory Act of the 91st General
Assembly, fails to make the election within the period
provided under subsection (d) and participates by default in
the traditional benefit package may make a late election to
participate in the portable benefit package or the
self-managed plan instead of the traditional benefit package
at any time within 6 months after the effective date of this
amendatory Act of the 91st General Assembly. 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 a currently 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 a currently 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.
(Source: P.A. 90-766, eff. 8-14-98.)
(40 ILCS 5/15-136.4)
Sec. 15-136.4. Retirement and Survivor Benefits Under
Portable Benefit Package.
(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 annuity benefits, 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.
(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.
(d) 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,
contingent annuitant designated by the participant. If the
optional form of payment or the 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) 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 joint and survivor annuity, (2) the participant's
right to elect a single-life annuity or an optional form of
payment under subsection (h) subject to his or her eligible
spouse's consent, if applicable, and (3) the participant's
right to reinstate coverage under the qualified joint and
survivor annuity prior to his or her annuity commencement
date by revoking an election of an optional form of benefit
under subsection (h).
(f) If a married participant with at least 1.5 years 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
retirement, 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 before the earliest date on which the
participant would have met the eligibility requirements for
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.
(3) Lump sum retirement benefit. The participant
may elect to receive a lump sum retirement benefit that
is equal to the amount of a refund payable under Section
15-154(a-2).
All optional annuity 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.
(i) Under no circumstances may an option be elected,
changed, or revoked after the date the participant's
retirement annuity commences.
(j) An election made pursuant to subsection (h) shall
become inoperative 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) (Blank). 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.
(l) The automatic annual increases described in
subsection (d) of Section 15-136 shall apply to retirement
benefits under the portable benefit package and the automatic
annual increases described in subsection (j) of Section
15-145 shall apply to survivor benefits under the portable
benefit package.
(Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
(40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
Sec. 15-139. Retirement annuities; cancellation;
suspended during employment.
(a) If an annuitant returns to employment for an
employer within 60 days after the beginning of the retirement
annuity payment period, the retirement annuity shall be
cancelled, and the annuitant shall refund to the System the
total amount of the retirement annuity payments which he or
she received. If the retirement annuity is cancelled, the
participant shall continue to participate in the System.
(b) If an annuitant retires prior to age 60 and receives
or becomes entitled to receive during any month compensation
in excess of the monthly retirement annuity (including any
automatic annual increases) for services performed after the
date of retirement for any employer under this System, the
State Employees' Retirement System of Illinois, or the
Teachers' Retirement System of the State of Illinois, that
portion of the monthly retirement annuity provided by
employer contributions shall not be payable.
If an annuitant retires at age 60 or over and receives or
becomes entitled to receive during any academic year
compensation in excess of the difference between his or her
highest annual earnings prior to retirement and his or her
annual retirement annuity computed under Rule 1, Rule 2, Rule
3 or Rule 4 of Section 15-136, or under Section 15-136.4, for
services performed after the date of retirement for any
employer under this System, that portion of the monthly
retirement annuity provided by employer contributions shall
be reduced by an amount equal to the compensation that
exceeds such difference.
However, any remuneration received for serving as a
member of the Illinois Educational Labor Relations Board
shall be excluded from "compensation" for the purposes of
this subsection (b), and serving as a member of the Illinois
Educational Labor Relations Board shall not be deemed to be a
return to employment for the purposes of this Section. This
provision applies without regard to whether service was
terminated prior to the effective date of this amendatory Act
of 1991.
(c) If an employer certifies that an annuitant has been
reemployed on a permanent and continuous basis or in a
position in which the annuitant is expected to serve for at
least 9 months, the annuitant shall resume his or her status
as a participating employee and shall be entitled to all
rights applicable to participating employees upon filing with
the board an election to forego all annuity payments during
the period of reemployment. Upon subsequent retirement, the
retirement annuity shall consist of the annuity which was
terminated by the reemployment, plus the additional
retirement annuity based upon service granted during the
period of reemployment, but the combined retirement annuity
shall not exceed the maximum annuity applicable on the date
of the last retirement.
The total service and earnings credited before and after
the initial date of retirement shall be considered in
determining eligibility of the employee or the employee's
beneficiary to benefits under this Article, and in
calculating final rate of earnings.
In determining the death benefit payable to a beneficiary
of an annuitant who again becomes a participating employee
under this Section, accumulated normal and additional
contributions shall be considered as the sum of the
accumulated normal and additional contributions at the date
of initial retirement and the accumulated normal and
additional contributions credited after that date, less the
sum of the annuity payments received by the annuitant.
The survivors insurance benefits provided under Section
15-145 shall not be applicable to an annuitant who resumes
his or her status as a participating employee, unless the
annuitant, at the time of initial retirement, has a survivors
insurance beneficiary who could qualify for such benefits.
If the annuitant's employment is terminated because of
circumstances other than death before 9 months from the date
of reemployment, the provisions of this Section regarding
resumption of status as a participating employee shall not
apply. The normal and survivors insurance contributions which
are deducted during this period shall be refunded to the
annuitant without interest, and subsequent benefits under
this Article shall be the same as those which were applicable
prior to the date the annuitant resumed employment.
The amendments made to this Section by this amendatory
Act of the 91st General Assembly apply without regard to
whether the annuitant was in service on or after the
effective date of this amendatory Act.
(Source: P.A. 86-1488.)
(40 ILCS 5/15-140) (from Ch. 108 1/2, par. 15-140)
Sec. 15-140. Reversionary annuities. A participant in
the traditional benefit package entitled to a retirement
annuity may, prior to retirement, elect to take a reduced
retirement annuity and provide with the actuarial value of
the reduction, a reversionary annuity to a dependent
beneficiary, subject to the following conditions: (1) the
participant's written notice of election to provide such
annuity is received by the board at least 30 days before the
retirement annuity payment period begins, and (2) the amount
of the reversionary annuity is not less than $10 per month,
and (3) the reversionary annuity is payable only if the
participant dies after retirement.
The participant may revoke the election by filing a
written notice of revocation with the board. The
beneficiary's death prior to retirement of the participant
shall constitute a revocation of the election.
The amount of the reversionary annuity shall be that
specified in the participant's notice of election, but not
more than the amount which when added to the survivors
annuity payable to the dependent beneficiary, would equal the
participant's reduced retirement annuity. The participant
shall specify in the notice of election whether the full
retirement annuity is to be resumed or the reduced retirement
annuity is to be continued, in the event the beneficiary
predeceases the annuitant.
The reversionary annuity payment period shall begin on
the day following the annuitant's death. A reversionary
annuity shall not be payable if the beneficiary predeceases
the annuitant.
(Source: P.A. 84-1028.)
(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) 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 Section
15-134.5, the death benefit shall be equal to the employee's
accumulated normal and additional contributions on the date
of death plus, if the employee died with 1.5 or 5 or more
years of service for employment as defined in Section
15-113.1, employer contributions in an amount equal to the
sum of the accumulated normal and additional contributions;
except that if a pre-retirement survivor annuity 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. If the recipient of a pre-retirement survivor
annuity dies before an amount equal to all accumulated normal
and additional contributions as of the date of death have
been paid out, the remaining difference shall be paid to the
member's beneficiary. The primary 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; 90-766, eff. 8-14-98.)
(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 an a pre-retirement survivor 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; 90-766, eff. 8-14-98.)
(40 ILCS 5/15-144) (from Ch. 108 1/2, par. 15-144)
Sec. 15-144. Beneficiary annuities. This Section
applies only to the death benefits of persons who became
participants before August 22, 1997 (the effective date of
Public Act 90-511).
If a deceased participant has specified in a written
notice on file with the board prior to his or her death, or
if the participant has not so specified, but the beneficiary
specifies in the application for the death benefit that the
benefit be paid as an annuity or as a designated cash payment
plus an annuity, it shall be paid in the manner thus
specified, unless the annuity is less than $10 per month, in
which case the death benefit shall be paid in a single cash
sum. If the death benefit is paid as an annuity, the
beneficiary may elect to take an amount not in excess of $500
in a single cash sum. The annuity payable to a beneficiary
shall be the actuarial equivalent of the death benefit,
determined as of the participant's date of death, on the
basis of the age of the beneficiary at that time.
The beneficiary annuity payment period shall begin on the
day following the death of the deceased and shall terminate
on the date of the beneficiary's death. If the beneficiary
may receive the death benefit in a single cash sum, but
elects to receive an annuity, he or she may, within one year
after the death of the participant or annuitant, revoke this
election and receive in a single cash sum the excess of the
amount of the death benefit upon which the annuity was based
over the sum of the annuity payments received.
(Source: P.A. 83-1440.)
(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' 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 did not take a refund or additional
annuity consisting of accumulated survivors insurance
contributions 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 that
occurs before the effective date of this amendatory Act of
the 91st General Assembly 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 did not take a refund or
additional annuity consisting of accumulated survivors
insurance contributions 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 did not take a refund or
additional annuity consisting of accumulated survivors
insurance contributions 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.
The change made to this Section by this amendatory Act of
the 91st General Assembly, pertaining to remarriage prior to
age 55, applies without regard to whether the deceased
participant or annuitant was in service on or after the
effective date of this amendatory Act of the 91st General
Assembly.
(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. This subsection (j) also applies to
persons receiving a survivor annuity under the portable
benefit package.
(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; 90-766, eff. 8-14-98.)
(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-2) The refund payable to a participant described in
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 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 traditional
transitional benefit package has made survivors insurance
contributions, but has no survivors insurance beneficiary
upon retirement, he or she shall be entitled to elect a
refund of the accumulated survivors insurance contributions,
or to elect an additional annuity the value of which is equal
to the accumulated survivors insurance contributions. This
election must be made prior to the date the person's
retirement annuity is approved by the Board of Trustees.
(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. 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 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, or under Section 15-136.4, 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;
90-766, eff. 8-14-98.)
(40 ILCS 5/15-158.2)
Sec. 15-158.2. Self-managed plan.
(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 for eligible employees who elect not
to participate in a defined benefit retirement program
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) Adoption by employers. Each employer subject to
this Article may elect to adopt the self-managed plan
established 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.
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. Consistent with its fiduciary duty to
the participants and beneficiaries of the self-managed plan,
the Board of Trustees of the System may delegate aspects of
plan administration as it sees fit to companies authorized to
do business in this State, to the employers, or to a
combination of both.
(c) Selection of service providers and funding vehicles.
The System, in consultation with the employers, shall solicit
proposals to provide administrative services and funding
vehicles for the self-managed plan 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.
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 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.
(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 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 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 to participate in the self-managed plan shall
continue to have the employer pick up the contributions
required under Section 15-157. However, the amounts picked
up after the election of the self-managed plan shall be
remitted to and treated as assets of the self-managed 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 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 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 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,
mutual fund companies, banks, trust companies, financial
institutions, or other sponsors of any of the funding
vehicles offered under the self-managed plan 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.
(i) Termination. The self-managed plan authorized under
this Section may be terminated by the System, subject to the
terms of any relevant contracts, and the System shall have no
obligation to reestablish the self-managed plan under this
Section. This Section does not create a right to continued
participation in any self-managed plan set up by the System
under this Section. If the self-managed plan 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 while not yet eligible for retirement under
this Article (and Article 20, if applicable) 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.
(k) Benefit amounts. If an employee who is vested in
employer contributions terminates employment, the employee
shall be entitled to a benefit which is based on the account
values attributable to both employer and employee
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
attributable to 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
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; 90-766, eff. 8-14-98.)
(40 ILCS 5/15-181) (from Ch. 108 1/2, par. 15-181)
Sec. 15-181. Duties of employers.
(a) Each employer, in preparing payroll vouchers for
participating employees, shall indicate, in addition to other
information: (1) the amount of employee contributions and
survivors insurance contributions required under Section
15-157, (2) the gross earnings payable to each employee, and
(3) the total of all contributions required under Section
15-157. An additional certified copy of each payroll
certified by each employer shall be forwarded along with the
original payroll to the Director of Central Management
Services, State Comptroller, and other officer receiving the
original certified payroll for transmittal to the board.
(b) Each employer, in drawing warrants or checks against
trust or federal funds for items of salary on payroll
vouchers certified by employers, shall draw such warrants or
checks to participating employees for the amount of cash
salary or wages specified for the period, and shall draw a
warrant or check to this system for the total of the
contributions required under Section 15-157. The warrant or
check drawn to this system, together with the additional copy
of the payroll supplied by the employer, shall be transmitted
immediately to the board.
(c) The City of Champaign and the City of Urbana, as
employers of persons who participate in this System pursuant
to subsection (h) of Section 15-107, shall each collect and
transmit to the System from each payroll the employee
contributions required under Section 15-157, together with
such payroll documentation as the Board may require, at the
time that the payroll is paid.
(Source: P.A. 90-576, eff. 3-31-98.).
(40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
Sec. 16-133. Retirement annuity; amount.
(a) The amount of the retirement annuity shall be the
larger of the amounts determined under paragraphs (A) and (B)
below:
(A) An amount consisting of the sum of the
following:
(1) An amount that can be provided on an
actuarially equivalent basis by the member's
accumulated contributions at the time of retirement;
and
(2) The sum of (i) the amount that can be
provided on an actuarially equivalent basis by the
member's accumulated contributions representing
service prior to July 1, 1947, and (ii) the amount
that can be provided on an actuarially equivalent
basis by the amount obtained by multiplying 1.4
times the member's accumulated contributions
covering service subsequent to June 30, 1947; and
(3) If there is prior service, 2 times the
amount that would have been determined under
subparagraph (2) of paragraph (A) above on account
of contributions which would have been made during
the period of prior service creditable to the member
had the System been in operation and had the member
made contributions at the contribution rate in
effect prior to July 1, 1947.
(B) An amount consisting of the greater of the
following:
(1) For creditable service earned before July
1, 1998 that has not been augmented under Section
16-129.1: 1.67% of final average salary for each of
the first 10 years of creditable service, 1.90% of
final average salary for each year in excess of 10
but not exceeding 20, 2.10% of final average salary
for each year in excess of 20 but not exceeding 30,
and 2.30% of final average salary for each year in
excess of 30; and
For creditable service earned on or after July
1, 1998 by a member who has at least 24 years of
creditable service on July 1, 1998 and who does not
elect to augment service under Section 16-129.1:
2.2% of final average salary for each year of
creditable service earned on or after July 1, 1998
but before the member reaches a total of 30 years of
creditable service and 2.3% of final average salary
for each year of creditable service earned on or
after July 1, 1998 and after the member reaches a
total of 30 years of creditable service; and
For all other creditable service: 2.2% of
final average salary for each year of creditable
service; or
(2) 1.5% of final average salary for each year
of creditable service plus the sum $7.50 for each of
the first 20 years of creditable service.
The amount of the retirement annuity determined under
this paragraph (B) shall be reduced by 1/2 of 1% for each
month that the member is less than age 60 at the time the
retirement annuity begins. However, this reduction shall
not apply (i) if the member has at least 35 years of
creditable service, or (ii) if the member retires on
account of disability under Section 16-149.2 of this
Article with at least 20 years of creditable service.
(b) For purposes of this Section, final average salary
shall be the average salary for the highest 4 consecutive
years within the last 10 years of creditable service as
determined under rules of the board. The minimum final
average salary shall be considered to be $2,400 per year.
In the determination of final average salary for members
other than elected officials and their appointees when such
appointees are allowed by statute, that part of a member's
salary for any year beginning after June 30, 1979 which
exceeds the member's annual full-time salary rate with the
same employer for the preceding year by more than 20% shall
be excluded. The exclusion shall not apply in any year in
which the member's creditable earnings are less than 50% of
the preceding year's mean salary for downstate teachers as
determined by the survey of school district salaries provided
in Section 2-3.103 of the School Code.
(c) In determining the amount of the retirement annuity
under paragraph (B) of this Section, a fractional year shall
be granted proportional credit.
(d) The retirement annuity determined under paragraph
(B) of this Section shall be available only to members who
render teaching service after July 1, 1947 for which member
contributions are required, and to annuitants who re-enter
under the provisions of Section 16-150.
(e) The maximum retirement annuity provided under
paragraph (B) of this Section shall be 75% of final average
salary.
(f) A member retiring after the effective date of this
amendatory Act of 1998 shall receive a pension equal to 75%
of final average salary if the member is qualified to receive
a retirement annuity equal to at least 74.6% of final average
salary under this Article or as proportional annuities under
Article 20 of this Code.
(Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.)
(40 ILCS 5/16-135) (from Ch. 108 1/2, par. 16-135)
Sec. 16-135. Supplementary retirement annuity.
(a) An annuitant who is receiving a retirement annuity
on June 30, 1961 of less than $50 for each year of creditable
service forming the basis of the retirement annuity shall
have his or her retirement annuity increased to $50 per year
for each year of such creditable service, but not exceeding a
total annual retirement annuity of $2,250.
(b) In order to be entitled to the increase in
retirement annuity provided under this Section, an annuitant
is required to make an additional contribution of $5 for each
year of creditable service, not to exceed 45 years together
with interest at the rate of 3% per annum from August 25,
1961.
(c) The supplementary retirement annuity provided under
this Section shall begin to accrue on the first of the month
following receipt of the required contribution from the
annuitant and shall continue to be paid only to the extent
that funds are available in the Supplementary Annuity Reserve
established under Section 16-184.
(Source: P.A. 83-1440.)
(40 ILCS 5/16-136.4) (from Ch. 108 1/2, par. 16-136.4)
Sec. 16-136.4. Single-sum retirement benefit.
(a) A member who has less than 5 years of creditable
service shall be entitled, upon written application to the
board, to receive a retirement benefit payable in a single
sum upon or after the member's attainment of age 65.
However, the benefit shall not be paid while the member is
employed as a teacher in the schools included under this
Article or Article 17, unless the System is required by
federal law to make payment due to the member's age.
(b) The retirement benefit shall consist of a single sum
that is the actuarial equivalent of a life annuity consisting
of 1.67% of the member's final average salary for each year
of creditable service. In determining the amount of the
benefit, a fractional year shall be granted proportional
credit.
For the purposes of this Section, final average salary
shall be the average salary of the member's highest 4
consecutive years of service as determined under rules of the
board. For a member with less than 4 consecutive years of
service, final average salary shall be the average salary
during the member's entire period of service. In the
determination of final average salary for members other than
elected officials and their appointees when such appointees
are allowed by statute, that part of a member's salary which
exceeds the member's annual full-time salary rate with the
same employer for the preceding year by more than 20% shall
be excluded. The exclusion shall not apply in any year in
which the member's creditable earnings are less than 50% of
the preceding year's mean salary for downstate teachers as
determined by the survey of school district salaries provided
in Section 2-3.103 of the School Code.
(c) The retirement benefit determined under this Section
shall be available to all members who render teaching service
after July 1, 1947 for which member contributions are
required.
(d) Upon acceptance of the retirement benefit, all of
the member's accrued rights and credits in the System are
forfeited. Receipt of a single-sum retirement benefit under
this Section does not make a person an "annuitant" for the
purposes of this Article, nor a "benefit recipient" for the
purposes of Sections 16-153.1 through 16-153.4.
(Source: P.A. 87-11.)
(40 ILCS 5/16-138) (from Ch. 108 1/2, par. 16-138)
Sec. 16-138. Refund of contributions upon death of
member or annuitant. Upon the death of a member or
annuitant, the following amount shall be payable (i) to a
beneficiary, nominated by written designation of the member
or annuitant filed with the system, or (ii) if no beneficiary
is nominated, to the surviving spouse, or (iii) if no
beneficiary is nominated and there is no surviving spouse, to
the decedent's estate, upon receipt of proper proof of death:
(1) Upon the death of a member, an amount consisting of
the sum of the following: (A) the member's accumulated
contributions; (B) the sum of the contributions made by the
member toward the cost of the automatic increase in annuity
under Section 16-152, without interest thereon; and (C)
contributions made by the member toward prior service,
without interest thereon.
(2) Upon the death of an annuitant, unless a
reversionary annuity is payable under Section 16-136, an
amount determined by subtracting the total amount of monthly
annuity payments received as a result of the deceased
annuitant's retirement from the sum of: (A) the accumulated
contributions at retirement; (B) the sum of the contributions
made by the deceased toward the cost of the automatic
increase in annuity under Section 16-151, without interest
thereon; and (C) any contributions made by the deceased for
prior service or other purposes, exclusive of contributions
toward the cost of the automatic increase in annuity, without
interest thereon.
(Source: P.A. 83-1440.)
(40 ILCS 5/16-140) (from Ch. 108 1/2, par. 16-140)
Sec. 16-140. Survivors' benefits - definitions.
(a) For the purpose of Sections 16-138 through 16-143.2,
the following terms shall have the following meanings, unless
the context otherwise requires:
(1) "Average salary": the average salary for the
highest 4 consecutive years within the last 10 years of
creditable service immediately preceding date of death or
retirement, whichever is applicable, or the average
salary for the total creditable service if service is
less than 4 years.
(2) "Member": any teacher included in the
membership of the system. However, a teacher who becomes
an annuitant of the system or a teacher whose services
terminate after 20 years of service from any cause other
than retirement is considered a member, subject to the
conditions and limitations stated in this Article.
(3) "Dependent beneficiary": (A) a surviving spouse
of a member or annuitant who was married to the member or
annuitant for the 12 month period immediately preceding
and on the date of death of such member or annuitant,
except where a child is born of such marriage, in which
case the qualifying period shall not be applicable; (A-1)
a surviving spouse of a member or annuitant who (i) was
married to the member or annuitant on the date of the
member or annuitant's death, (ii) was married to the
member or annuitant for a period of at least 12 months
(but not necessarily the 12 months immediately preceding
the member or annuitant's death), and (iii) first applied
for a survivor's benefit before April 1, 1997, and (iv)
has not received a benefit under subsection (a) of
Section 16-141 or paragraph (1) of Section 16-142; (B) an
eligible child of a member or annuitant; and (C) a
dependent parent.
Unless otherwise designated by the member,
eligibility for benefits shall be in the order named,
except that a dependent parent shall be eligible only if
there is no other dependent beneficiary. Any benefit to
be received by or paid to a dependent beneficiary to be
determined under this paragraph as provided in Sections
16-141 and 16-142 may be received by or paid to a trust
established for such dependent beneficiary if such
dependent beneficiary is living at the time such benefit
would be received by or paid to such trust.
(4) "Eligible child": an unmarried natural or
adopted child of the member or annuitant under age 18
(age 22 if a full-time student). An unmarried natural or
adopted child, regardless of age, who is dependent by
reason of a physical or mental disability, except any
such child receiving benefits under Article III of the
Illinois Public Aid Code, is eligible for so long as such
physical or mental disability continues. An adopted
child, however, is eligible only if the proceedings for
adoption were finalized while the child was a minor.
For purposes of this subsection, "disability" means
an inability to engage in any substantial gainful
activity by reason of any medically determinable physical
or mental impairment 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 changes made to this Section by Public Act
90-448, 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 that Act.
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
that Act.
(5) "Dependent parent": a parent who was receiving
at least 1/2 of his or her support from a member or
annuitant for the 12-month period immediately preceding
and on the date of such member's or annuitant's death,
provided however, that such dependent status terminates
upon a member's acceptance of a refund for survivor
benefit contributions as provided under Section 16-142.
(6) "Non-dependent beneficiary": any person,
organization or other entity designated by the member who
does not qualify as a dependent beneficiary.
(7) "In service": the condition of a member being
in receipt of salary as a teacher at any time within 12
months immediately before his or her death, being on
leave of absence for which the member, upon return to
teaching, would be eligible to purchase service credit
under subsection (b)(5) of Section 16-127, or being in
receipt of a disability or occupational disability
benefit. This term does not include any annuitant or
member who previously accepted a refund of survivor
benefit contributions under paragraph (1) of Section
16-142 unless the conditions specified in subsection (b)
of Section 16-143.2 are met.
(b) The change to this Section made by Public Act 90-511
applies without regard to whether the deceased member or
annuitant was in service on or after the effective date of
that Act.
The change to this Section made by this amendatory Act of
the 91st General Assembly applies without regard to whether
the deceased member or annuitant was in service on or after
the effective date of this amendatory Act.
(Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
90-511, eff. 8-22-97; 90-655, eff. 7-30-98.)
(40 ILCS 5/16-143) (from Ch. 108 1/2, par. 16-143)
Sec. 16-143. Survivors' benefits - other conditions and
limitations. The benefits provided under Sections 16-141 and
16-142, shall be subject to the following further conditions
and limitations:
(1) The period during which a member was in receipt of a
disability or occupational disability benefit shall be
considered as creditable service at the annual salary rate on
which the member last made contributions.
(2) All service prior to July 24, 1959, for which
creditable service is granted towards a retirement annuity
shall be considered as creditable service.
(3) No benefits shall be payable unless a member, or a
disabled member, returning to service, has made contributions
to the system for at least one month after July 24, 1959,
except that an annuitant must have contributed to the system
for at least 1 year of creditable service after July 24,
1959.
(4) Creditable service under the State Employees'
Retirement System of Illinois, the State Universities
Retirement System and the Public School Teachers' Pension and
Retirement Fund of Chicago shall be considered in determining
whether the member has met the creditable service
requirement.
(5) If an eligible beneficiary qualifies for a
survivors' benefit because of pension credits established by
the participant or annuitant in another system covered by
Article 20, and the combined survivors' benefits exceed the
highest survivors' benefit payable by either system based
upon the combined pension credits, the survivors' benefit
payable by this system shall be reduced to that amount which
when added to the survivors' benefit payable by the other
system would equal this highest survivors' benefit. If the
other system has a similar provision for adjustment of the
survivors' benefit, the respective proportional survivors'
benefits shall be reduced proportionately according to the
ratio which the amount of each proportional survivors'
benefit bears to the aggregate of all proportional survivors'
benefits. If a survivors' benefit is payable by another
system covered by Article 20, and the survivor elects to
waive the monthly survivors' benefit and accept a lump sum
payment or death benefit in lieu of the monthly survivors'
benefit, this system shall, for the purpose of adjusting the
monthly survivors' benefit under this paragraph, assume that
the survivor had been entitled to a monthly survivors'
benefit which, in accordance with actuarial tables of this
system, is the actuarial equivalent of the amount of the lump
sum payment or death benefit.
(6) Remarriage of a surviving spouse prior to attainment
of age 55 that occurs before the effective date of this
amendatory Act of the 91st General Assembly shall terminate
his or her survivors' benefits.
The change made to this item (6) by this amendatory Act
of the 91st General Assembly applies without regard to
whether the deceased member or annuitant was in service on or
after the effective date of this amendatory Act of the 91st
General Assembly.
(7) The benefits payable to an eligible child shall
terminate when the eligible child marries, dies, or attains
age 18 (age 22 if a full-time student); except that benefits
payable to a dependent disabled eligible child shall
terminate only when the eligible child dies or ceases to be
disabled.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/16-149.4) (from Ch. 108 1/2, par. 16-149.4)
Sec. 16-149.4. Supplementary disability retirement
annuity.
(a) An annuitant receiving a disability retirement
annuity on June 30, 1961 of less than $50 for each year of
creditable service forming the basis of the disability
retirement annuity shall have his or her disability
retirement annuity increased to $50 per year for each year of
such creditable service, with a minimum annuity of $1,000 per
year.
(b) In order to be entitled to the increase in
disability retirement annuity provided under this Section, an
annuitant is required to make an additional contribution of
$5 for each year of creditable service, together with
interest at the rate of 3% per annum from August 25, 1961.
(c) The supplementary retirement annuity provided under
this Section shall begin to accrue on the first of the month
following receipt of the required contributions from the
annuitant and shall continue to be paid only to the extent
that funds are available in the Supplementary Annuity Reserve
established under Section 16-184.
(Source: P.A. 83-1440.)
(40 ILCS 5/16-184) (from Ch. 108 1/2, par. 16-184)
Sec. 16-184. Supplementary Annuity Reserve.
(a) Except as provided in subsection (b), a reserve to
be known as the Supplementary Annuity Reserve is established
for the purpose of crediting funds received and charging
disbursements made for supplementary annuities under Section
16-135 and Section 16-149.4.
This Reserve shall be credited with:
(1) The total of all contributions made by
annuitants to qualify for supplementary annuities.
(2) Amounts contributed to the System by the State
of Illinois that are sufficient to assure payment of the
supplementary annuities.
(3) Regular interest computed annually on the
average balance in this reserve.
This Reserve shall be charged with all supplemental
annuity payments under Section 16-135 and Section 16-149.4.
(b) On the July 1 next occurring after the effective
date of this amendatory Act of the 91st General Assembly, the
Supplemental Annuity Reserve is abolished and any remaining
balance After all supplementary annuity payments have been
completed, any remaining funds shall be transferred from that
this Reserve to the Employer's Contribution Reserve.
(Source: P.A. 88-593, eff. 8-22-94.)
(40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106)
Sec. 17-106. Contributor, member or teacher.
"Contributor", "member" or "teacher": All members of the
teaching force of the city, including principals, assistant
principals, the general superintendent of schools, deputy
superintendents of schools, associate superintendents of
schools, assistant and district superintendents of schools,
members of the Board of Examiners, all other persons whose
employment requires a teaching certificate issued under the
laws governing the certification of teachers, any
educational, administrative, professional, or other staff
employed in a charter school operating in compliance with the
Charter Schools Law who is certified under the law governing
the certification of teachers, and employees of the Board,
but excluding persons contributing concurrently to any other
public employee pension system in Illinois for the same
employment or receiving retirement pensions under another
Article of this Code for that same employment (unless the
person's eligibility to participate in that other pension
system arises from the holding of an elective public office,
and the person has held that public office for at least 10
years), persons employed on an hourly basis, and persons
receiving pensions from the Fund who are employed temporarily
by an Employer for 100 days or less in any school year and
not on an annual basis.
In the case of a person who has been making contributions
and otherwise participating in this Fund prior to the
effective date of this amendatory Act of the 91st General
Assembly 1991, and whose right to participate in the Fund is
established or confirmed by this amendatory Act, such prior
participation in the Fund, including all contributions
previously made and service credits previously earned by the
person, are hereby validated.
(Source: P.A. 89-450, eff. 4-10-96; 90-32, eff. 6-27-97;
90-566, eff. 1-2-98.)
(40 ILCS 5/17-117) (from Ch. 108 1/2, par. 17-117)
Sec. 17-117. Disability retirement pension.
(a) The conditions prescribed in items 1 and 2 in
Section 17-116 for computing service retirement pensions
shall apply in the computation of disability retirement
pensions.
(1) Each teacher retired or retiring after 10 years
of service and with less than 20 years of service because
of permanent disability not incurred as a proximate
result of the performance of duty shall receive a
disability retirement pension equal to 2.2% of average
salary for each year of service after June 30, 1998 and
for each year of service on or before that date that has
been augmented under Section 17-119.1 and 1 2/3% of
average salary for each year of other service.
(2) If the total service is 20 years and less than
25 years and the teacher's age is under 55, the
disability retirement pension shall equal a service
retirement pension discounted 1/2 of 1% for each month
the age of the contributor is less than 55 down to a
minimum age of 50 years, provided the disability
retirement pension so computed shall not be less than the
amount payable under paragraph 1.
(3) If the total service is 20 years or more and
the teacher has attained age 55, and is under age 60, a
disability retirement pension shall equal a service
retirement pension without discount.
(4) If the total service is 25 years or more
regardless of age, a disability pension shall equal a
service retirement pension without discount.
(5) If the total service is 20 years or more and
the teacher is age 60 or over, a service retirement
pension shall be payable.
(b) For disability retirement pensions, the following
further conditions shall apply:
(1) Written application shall be submitted within 3
years from the date of separation.
(2) The applicant shall submit to examination by
physicians appointed by the Board within one year from
the date of their appointment.
(3) Two physicians, appointed by the Board, shall
declare the applicant to be suffering from a disability
which wholly and presumably permanently incapacitates him
for teaching or for service as an employee of the Board.
In the event of disagreement by the physicians, a third
physician, appointed by the Board, shall declare the
applicant wholly and presumably permanently
incapacitated.
(c) Disability retirement pensions shall begin on the
effective date of resignation or the day following the close
of the payroll period for which credit was validated,
whichever is later.
(Source: P.A. 90-32; eff. 6-27-97; 90-566, eff. 1-2-98.)
(40 ILCS 5/17-133) (from Ch. 108 1/2, par. 17-133)
Sec. 17-133. Contributions for periods of outside and
other service. Regularly certified and appointed teachers
who desire to have the following described services credited
for pension purposes shall submit to the Board evidence
thereof and pay into the Fund the amounts prescribed herein:
1. For teaching service by a certified teacher in
the public schools of the several states or in schools
operated by or under the auspices of the United States, a
teacher shall pay the contributions at the rates in force
(a) on the date of appointment as a regularly certified
teacher after salary adjustments are completed, or (b) at
the time of reappointment after salary adjustments are
completed, whichever is later, but not less than $450 per
year of service. Upon the Board's approval of such
service and the payment of the required contributions,
service credit of not more than 10 years shall be
granted.
2. For service as a playground instructor in public
school playgrounds, teachers shall pay the contributions
prescribed in this Article (a) at the time of
appointment, as a regularly certified teacher after
salary adjustments are completed, or (b) on return to
service as a full time regularly certified teacher, as
the case may be, provided such rates or amounts shall not
be less than $450 per year.
3. For service prior to September 1, 1955, in the
public schools of the City as a substitute, evening
school or temporary teacher, or for service as an
Americanization teacher prior to December 31, 1955,
teachers shall pay the contributions prescribed in this
Article (a) at the time of appointment, as a regularly
certified teacher after salary adjustments are completed,
(b) on return to service as a full time regularly
certified teacher, as the case may be, provided such
rates or amounts shall not be less than $450 per year;
and provided further that for teachers employed on or
after September 1, 1953, rates shall not include
contributions for widows' pensions if the service
described in this sub-paragraph 3 was rendered before
that date. Any teacher entitled to repay a refund of
contributions under Section 17-126 126 of this Article
may validate service described in this paragraph by
payment of the amounts prescribed herein, together with
the repayment of the refund, provided that if such
creditable service was the last service rendered in the
public schools of the City and is not automatically
reinstated by repayment of the refund, the rates or
amounts shall not be less than $450 per year.
4. For service after June 30, 1982 as a member of
the Board of Education, if required to resign from an
administrative or teaching position in order to qualify
as a member of the Board of Education.
5. For service during the 1986-87 school year as a
teacher on a special leave of absence with full loss of
salary, teaching for an agency under contract to the
Board of Education, if the teacher returned to employment
in September, 1987. For service under this item 5, the
teacher must pay the contributions at the rates in force
at the completion of the leave period.
For service described in sub-paragraphs 1, 2 and 3 of
this Section, interest shall be charged beginning one year
after the effective date of appointment or reappointment.
Effective September 1, 1974, the interest rate to be
charged by the Fund on contributions provided in
sub-paragraphs 1, 2, 3 and 4 shall be 5% per annum compounded
annually.
(Source: P.A. 90-566, eff. 1-2-98.)
(40 ILCS 5/17-150) (from Ch. 108 1/2, par. 17-150)
Sec. 17-150. Suspension of pensions. Until July 1,
2000, pension payments, exclusive of those made to the
survivors of persons who were contributors, shall be
suspended while the recipient is employed in a teaching
capacity, outside the City in which the Fund exists, by any
public school or charter school in this State, unless the
recipient is so employed temporarily as a substitute teacher
for 100 days or less in a school year or on an hourly basis
with earnings not in excess of the sum payable for 100 days'
substitute service.
Beginning July 1, 2000, pension payments shall no longer
be suspended while the recipient is employed in a teaching
capacity, outside the City in which the Fund exists, by any
public school or charter school in this State, and any
pension that is in a state of suspension under this Section
on July 1, 2000 shall be reinstated on that date.
Notwithstanding Section 17-157, the change to this Section
made by this amendatory Act of the 91st General Assembly
applies without regard to whether or not the pensioner was in
service on or after the effective date of this amendatory
Act.
(Source: P.A. 90-566, eff. 1-2-98.)
(40 ILCS 5/18-128) (from Ch. 108 1/2, par. 18-128)
Sec. 18-128. Survivor's annuities; Conditions for
payment.
(a) A survivor's annuity shall be payable upon the death
of a participant while in service after June 30, 1967 if the
participant had at least 1 1/2 years of service credit as a
judge, or upon death of an inactive participant who had
terminated service as a judge on or after June 30, 1967 with
at least 10 years of service credit, or upon the death of an
annuitant whose retirement becomes effective after June 30,
1967.
(b) The surviving spouse of a deceased participant or
annuitant is entitled to a survivor's annuity beginning at
the date of death if the surviving spouse (1) has been
married to the participant or annuitant for a continuous
period of at least one year immediately preceding the date of
death, and (2) has attained age 50, or, regardless of age,
has in his or her care an eligible child or children of the
decedent as provided under subsections (c) and (d) of this
Section. If the surviving spouse has no such child in his or
her care and has not attained age 50, the survivor's annuity
shall begin upon attainment of age 50. When all such
children of the deceased who are in the care of the surviving
spouse no longer qualify for benefits and the surviving
spouse is under 50 years of age, the surviving spouse's
annuity shall be suspended until he or she attains age 50.
(c) A child's annuity is payable for an unmarried child
of an annuitant or participant so long as the child is (i)
under age 18, (ii) under age 22 and a full time student, or
(iii) age 18 or over if dependent by reason of physical or
mental disability. Disability means inability to engage in
any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can 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.
(d) Adopted children shall have the same status as
natural children, but only if the proceedings for adoption
were commenced at least 6 months prior to the death of the
annuitant or participant.
(e) Remarriage prior to attainment of age 50 that occurs
before the effective date of this amendatory Act of the 91st
General Assembly shall disqualify a surviving spouse for the
receipt of a survivor's annuity.
The change made to this subsection by this amendatory Act
of the 91st General Assembly applies without regard to
whether the deceased judge was in service on or after the
effective date of this amendatory Act of the 91st General
Assembly.
(f) The changes made in survivor's annuity provisions by
Public Act 82-306 shall apply to the survivors of a deceased
participant or annuitant whose death occurs on or after
August 21, 1981 and whose service as a judge terminates on or
after July 1, 1967.
The provision of child's annuities for dependent students
under age 22 by this amendatory Act of 1991 shall apply to
all eligible students beginning January 1, 1992, without
regard to whether the deceased judge was in service on or
after the effective date of this amendatory Act.
(Source: P.A. 87-794.)
(40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
Sec. 20-121. Calculation of proportional retirement
annuities. Upon retirement of the employee, a proportional
retirement annuity shall be computed by each participating
system in which pension credit has been established on the
basis of pension credits under each system. The computation
shall be in accordance with the formula or method prescribed
by each participating system which is in effect at the date
of the employee's latest withdrawal from service covered by
any of the systems in which he has pension credits which he
elects to have considered under this Article. However, the
amount of any retirement annuity payable under the
self-managed plan established under Section 15-158.2 of this
Code depends solely on the value of the participant's vested
account balances and is not subject to any proportional
adjustment under this Section.
Combined pension credit under all retirement systems
subject to this Article shall be considered in determining
whether the minimum qualification has been met and the
formula or method of computation which shall be applied. If
a system has a step-rate formula for calculation of the
retirement annuity, pension credits covering previous service
which have been established under another system shall be
considered in determining which range or ranges of the
step-rate formula are to be applicable to the employee.
Interest on pension credit shall continue to accumulate
in accordance with the provisions of the law governing the
retirement system in which the same has been established
during the time an employee is in the service of another
employer, on the assumption such employee, for interest
purposes for pension credit, is continuing in the service
covered by such retirement system.
(Source: P.A. 79-782.)
(40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
Sec. 20-123. Survivor's annuity. The provisions
governing a retirement annuity shall be applicable to a
survivor's annuity. Appropriate credits shall be established
for survivor's annuity purposes in those participating
systems which provide survivor's annuities, according to the
same conditions and subject to the same limitations and
restrictions herein prescribed for a retirement annuity. If
a participating system has no survivor's annuity benefit, or
if the survivor's annuity benefit under that system is
waived, pension credit established in that this system shall
not be considered in determining eligibility for or the
amount of the survivor's annuity which may be payable by any
other participating system.
For persons who participate in the self-managed plan
established under Section 15-158.2 or the portable benefit
package established under Section 15-136.4, pension credit
established under Article 15 may be considered in determining
eligibility for or the amount of the survivor's annuity that
is payable by any other participating system, but pension
credit established in any other system shall not result in
any right to a survivor's annuity under the Article 15
system.
(Source: P.A. 79-782.)
(40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
Sec. 20-124. Maximum benefits. In no event shall the
combined retirement or survivors annuities exceed the highest
annuity which would have been payable by any participating
system in which the employee has pension credits, if all of
his pension credits had been validated in that system.
If the combined annuities should exceed the highest
maximum as determined in accordance with this Section, the
respective annuities shall be reduced proportionately
according to the ratio which the amount of each proportional
annuity bears to the aggregate of all such annuities.
In the case of a participant in the self-managed plan
established under Section 15-158.2 of this Code to whom the
provisions of this Article apply:
(i) For purposes of calculating the combined
retirement annuity and the proportionate reduction, if
any, in a retirement annuity other than one payable under
the self-managed plan, the amount of the Article 15
retirement annuity shall be deemed to be the highest
annuity to which the annuitant would have been entitled
if he or she had participated in the traditional benefit
package as defined in Section 15-103.1 rather than the
self-managed plan.
(ii) For purposes of calculating the combined
survivor's annuity and the proportionate reduction, if
any, in a survivor's annuity other than one payable under
the self-managed plan, the amount of the Article 15
survivor's annuity shall be deemed to be the highest
survivor's annuity to which the survivor would have been
entitled if the deceased employee had participated in the
traditional benefit package as defined in Section
15-103.1 rather than the self-managed plan.
(iii) Benefits payable under the self-managed plan
are not subject to proportionate reduction under this
Section.
(Source: P.A. 79-782.)
(40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
Sec. 20-125. Return to employment - suspension of
benefits. If a retired employee returns to employment which
is covered by a system from which he is receiving a
proportional annuity under this Article, his proportional
annuity from all participating systems shall be suspended
during the period of re-employment, except that this
suspension does not apply to any distributions payable under
the self-managed plan established under Section 15-158.2 of
this Code.
The provisions of the Article under which such employment
would be covered shall govern the determination of whether
the employee has returned to employment, and if applicable
the exemption of temporary employment or employment not
exceeding a specified duration or frequency, for all
participating systems from which the retired employee is
receiving a proportional annuity under this Article,
notwithstanding any contrary provisions in the other Articles
governing such systems.
(Source: P.A. 85-1008.)
(40 ILCS 5/20-131) (from Ch. 108 1/2, par. 20-131)
Sec. 20-131. Retirement Annuities and Survivors
Annuities - Guarantees.
(a) This amendatory Act of 1975 (P.A. 79-782) shall not
be applied to deprive any person or his survivor of
eligibility for an annuity or to reduce the annuity or to
deprive such person of rights to which he or his survivor
would have been entitled under the provisions of Article 20
which were in effect immediately prior to September 5, 1975,
if he was an employee immediately prior to that date.
(b) If the combined retirement annuity benefits provided
under Public Act 79-782 are less than the combined retirement
annuity benefits that would have been payable under the
alternative formula of Section 20-122, the system under which
retirement would have occurred, as provided by Section
20-122, shall increase the proportional retirement annuity by
an amount equal to the difference.
(c) Subsection (b) of this Section does not apply to the
retirement annuity benefits payable under the self-managed
plan established under Section 15-158.2 of this Code.
(Source: P.A. 86-820.)
(40 ILCS 5/15-158.1 rep.)
Section 15. The Illinois Pension Code is amended by
repealing Section 15-158.1.
Section 20. The Illinois Pension Code is amended by
changing Sections 15-136, 15-136.2, and 15-185 as follows:
(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 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.
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 equal to that 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.
With respect to a police officer or firefighter who
retires on or after August 14, 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).
The amount of a retirement annuity calculated under this
Rule 2 shall be computed solely on the basis of the
participant's accumulated normal contributions, as specified
in this Rule and defined in Section 15-116. Neither an
employee or employer contribution for early retirement under
Section 15-136.2 nor any other employer contribution shall be
used in the calculation of the amount of a retirement annuity
under this Rule 2.
This amendatory Act of the 91st General Assembly is a
clarification of existing law and applies to every
participant and annuitant without regard to whether status as
an employee terminates before the effective date of this
amendatory Act.
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. The
retirement annuity for all other service shall be computed
under Rule 1.
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; 90-655, eff. 7-30-98;
90-766, eff. 8-14-98.)
(40 ILCS 5/15-136.2) (from Ch. 108 1/2, par. 15-136.2)
Sec. 15-136.2. Early retirement without discount. A
participant whose retirement annuity begins after June 1,
1981 and on or before September 1, 2002 and within six months
of the last day of employment for which retirement
contributions were required, may elect at the time of
application to make a one time employee contribution to the
System and thereby avoid the early retirement reduction in
retirement annuity specified under subsection (b) of Section
15-136. The exercise of the election shall obligate the last
employer to also make a one time non-refundable contribution
to the System.
The one time employee and employer contributions shall be
a percentage of the retiring participant's highest full time
annual salary rate during the academic years which were
considered in determining his or her final rate of earnings,
or if not full time then the full time equivalent. The
employee contribution rate shall be 7% multiplied by the
lesser of the following 2 sums: (1) the number of years that
the participant is less than age 60; or (2) the number of
years that the participant's creditable service is less than
35 years. The employer contribution shall be at the rate of
20% for each year the participant is less than age 60. The
employer shall pay the employer contribution from the same
source of funds which is used in paying earnings to
employees.
Upon receipt of the application and election, the System
shall determine the one time employee and employer
contributions. The provisions of this Section shall not be
applicable until all the above outlined contributions have
been received by the System; however, the date such
contributions are received shall not be considered in
determining the effective date of retirement.
Employee and employer contributions under this Section
shall be used only to eliminate the reduction for early
retirement under Rules 1 and 3 of Section 15-136 and shall
not be used in calculating annuities under Rules 2 or 4 set
forth in Section 15-136. This amendatory Act of the 91st
General Assembly is a clarification of existing law and
applies to every participant and annuitant without regard to
whether status as an employee terminates before the effective
date of this amendatory Act.
For persons who apply to the Board after the effective
date of this amendatory Act of 1993 and before July 1, 1993,
requesting a retirement annuity to begin no earlier than July
1, 1993 and no later than June 30, 1994, the employer shall
pay both the employee and employer contributions required
under this Section.
The number of employees retiring under this Section in
any fiscal year may be limited at the option of the employer
to no less than 15% of those eligible. The right to elect
early retirement without discount shall be allocated among
those applying on the basis of seniority in the service of
the last employer.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
(40 ILCS 5/15-185) (from Ch. 108 1/2, par. 15-185)
Sec. 15-185. Annuities, etc., exempt. The accumulated
employee and employer contributions shall be held in trust
for each participant and annuitant, and this trust shall be
treated as a spendthrift trust. Except as provided in this
Article, all cash, securities and other property of this
system, all annuities and other benefits payable under this
Article and all accumulated credits of participants and
annuitants in this system and the right of any person to
receive an annuity or other benefit under this Article, or a
refund of contributions, shall not be subject to judgment,
execution, garnishment, attachment, or other seizure by
process, in bankruptcy or otherwise, nor to sale, pledge,
mortgage or other alienation, and shall not be assignable.
The board, however, may deduct from the benefits, refunds and
credits payable to the participant, annuitant or beneficiary,
amounts owed by the participant or annuitant to the system.
No attempted sale, transfer or assignment of any benefit,
refund or credit shall prevent the right of the board to make
the deduction and offset authorized in this Section. Any
participant or annuitant may authorize the board to deduct
from disability benefits or annuities, premiums due under any
group hospital-surgical insurance program which is sponsored
or approved by any employer; however, the deductions from
disability benefits may not begin prior to 6 months after the
disability occurs.
A person receiving an annuity or benefit under this
Article may also authorize withholding from that annuity or
benefit for the purposes enumerated in and in accordance with
the provisions of the State Salary and Annuity Withholding
Act.
This Section is not intended to, and does not, affect the
calculation of any benefit under this Article or dictate how
or to what extent employee or employer contributions are to
be taken into account in calculating benefits. This
amendatory Act of the 91st General Assembly is a
clarification of existing law and applies to every
participant and annuitant without regard to whether status as
an employee terminates before the effective date of this
amendatory Act.
Public Act 86-273 is a clarification of existing law and
shall be applicable to every participant and annuitant
without regard to whether status as an employee terminates
before the effective date of that Act.
(Source: P.A. 90-65, eff. 7-7-97; 90-448, eff. 8-16-97;
90-511, eff. 8-22-97; 90-655, eff. 7-30-98.)
Section 25. The Illinois Pension Code is amended by
changing Sections 15-136, 15-139, 15-146, 15-146.1, and
15-154 as follows:
(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 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.
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.
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. The
retirement annuity for all other service shall be computed
under Rule 1.
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.
Rule 5: The retirement annuity of a participant who
elected early retirement under the provisions of Section
15-136.2 and who, on or before February 16, 1995, brought
administrative proceedings pursuant to the administrative
rules adopted by the System to challenge the calculation of
his or her 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 equal to that 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;
and
(iii) an annuity which can be provided on an
actuarially equivalent basis from the employee
contribution for early retirement under Section 15-136.2,
and an annuity from employer contributions of an amount
equal to that which can be provided on an actuarially
equivalent basis from the employee contribution for early
retirement under Section 15-136.2.
In no event shall a retirement annuity under this Rule 5
be lower than the amount obtained by adding (1) the monthly
amount obtained by dividing the combined employee and
employer contributions made under Section 15-136.2 by the
System's annuity factor for the age of the participant at the
beginning of the annuity payment period and (2) the amount
equal to the participant's annuity if calculated under Rule
1, reduced under Section 15-136(b) as if no contributions had
been made under Section 15-136.2.
With respect to a participant who is qualified for a
retirement annuity under this Rule 5 whose retirement annuity
began before the effective date of this amendatory Act of the
91st General Assembly, and for whom an employee contribution
was made under Section 15-136.2, the System shall recalculate
the retirement annuity under this Rule 5 and shall pay any
additional amounts due in the manner provided in Section
15-186.1 for benefits mistakenly set too low.
The amount of a retirement annuity calculated under this
Rule 5 shall be computed solely on the basis of those
contributions specifically set forth in this Rule 5. Except
as provided in clause (iii) of this Rule 5, neither an
employee nor employer contribution for early retirement under
Section 15-136.2, nor any other employer contribution, shall
be used in the calculation of the amount of a retirement
annuity under this Rule 5.
The General Assembly has adopted the changes set forth in
Section 25 of this amendatory Act of the 91st General
Assembly in recognition that the decision of the Appellate
Court for the Fourth District in Mattis v. State Universities
Retirement System et al. might be deemed to give some right
to the plaintiff in that case. The changes made by Section
25 of this amendatory Act of the 91st General Assembly are a
legislative implementation of the decision of the Appellate
Court for the Fourth District in Mattis v. State Universities
Retirement System et al. with respect to that plaintiff.
The changes made by Section 25 of this amendatory Act of
the 91st General Assembly apply without regard to whether the
person is in service as an employee on or after its effective
date.
(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, and 5 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, or Rule 5, 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, or Rule 5
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; 90-655, eff. 7-30-98;
90-766, eff. 8-14-98.)
(40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
Sec. 15-139. Retirement annuities; Cancellation;
Suspended during employment.
(a) If an annuitant returns to employment for an
employer within 60 days after the beginning of the retirement
annuity payment period, the retirement annuity shall be
cancelled, and the annuitant shall refund to the System the
total amount of the retirement annuity payments which he or
she received. If the retirement annuity is cancelled, the
participant shall continue to participate in the System.
(b) If an annuitant retires prior to age 60 and receives
or becomes entitled to receive during any month compensation
in excess of the monthly retirement annuity for services
performed after the date of retirement for any employer under
this System, the State Employees' Retirement System of
Illinois, or the Teachers' Retirement System of the State of
Illinois, that portion of the monthly retirement annuity
provided by employer contributions shall not be payable.
If an annuitant retires at age 60 or over and receives or
becomes entitled to receive during any academic year
compensation in excess of the difference between his or her
highest annual earnings prior to retirement and his or her
annual retirement annuity computed under Rule 1, Rule 2, Rule
3, or Rule 4, or Rule 5 of Section 15-136 for services
performed after the date of retirement for any employer under
this System, that portion of the monthly retirement annuity
provided by employer contributions shall be reduced by an
amount equal to the compensation that exceeds such
difference.
However, any remuneration received for serving as a
member of the Illinois Educational Labor Relations Board
shall be excluded from "compensation" for the purposes of
this subsection (b), and serving as a member of the Illinois
Educational Labor Relations Board shall not be deemed to be a
return to employment for the purposes of this Section. This
provision applies without regard to whether service was
terminated prior to the effective date of this amendatory Act
of 1991.
(c) If an employer certifies that an annuitant has been
reemployed on a permanent and continuous basis or in a
position in which the annuitant is expected to serve for at
least 9 months, the annuitant shall resume his or her status
as a participating employee and shall be entitled to all
rights applicable to participating employees upon filing with
the board an election to forego all annuity payments during
the period of reemployment. Upon subsequent retirement, the
retirement annuity shall consist of the annuity which was
terminated by the reemployment, plus the additional
retirement annuity based upon service granted during the
period of reemployment, but the combined retirement annuity
shall not exceed the maximum annuity applicable on the date
of the last retirement.
The total service and earnings credited before and after
the initial date of retirement shall be considered in
determining eligibility of the employee or the employee's
beneficiary to benefits under this Article, and in
calculating final rate of earnings.
In determining the death benefit payable to a beneficiary
of an annuitant who again becomes a participating employee
under this Section, accumulated normal and additional
contributions shall be considered as the sum of the
accumulated normal and additional contributions at the date
of initial retirement and the accumulated normal and
additional contributions credited after that date, less the
sum of the annuity payments received by the annuitant.
The survivors insurance benefits provided under Section
15-145 shall not be applicable to an annuitant who resumes
his or her status as a participating employee, unless the
annuitant, at the time of initial retirement, has a survivors
insurance beneficiary who could qualify for such benefits.
If the annuitant's employment is terminated because of
circumstances other than death before 9 months from the date
of reemployment, the provisions of this Section regarding
resumption of status as a participating employee shall not
apply. The normal and survivors insurance contributions which
are deducted during this period shall be refunded to the
annuitant without interest, and subsequent benefits under
this Article shall be the same as those which were applicable
prior to the date the annuitant resumed employment.
(Source: P.A. 86-1488.)
(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, or Rule 5 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.
(Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
(40 ILCS 5/15-146.1) (from Ch. 108 1/2, par. 15-146.1)
Sec. 15-146.1. Survivors insurance benefits-Maximum
amounts. (a) The maximum total survivors annuity payable on
account of any deceased participating employee shall be the
lesser of: (1) 80% of the final rate of earnings; or (2) (A)
$400 per month if one survivors insurance beneficiary is
entitled to a survivors annuity, or (B) $600 per month if
there are 2 or more such beneficiaries.
(b) The maximum total survivors annuity payable on
account of the death of any person occurring after retirement
or after termination of his or her employee status shall be
the lesser of: (1) 80% of the final rate of earnings; (2)
(A) $400 per month if one survivors insurance beneficiary is
entitled to a survivors annuity, or (B) $600 per month if
there are 2 or more such beneficiaries; or (3) 80% of the
retirement annuity payable to the annuitant at the date of
retirement under the provisions of Rule 1, Rule 2, or Rule 3,
or Rule 5 of Section 15-136, or 80% of the retirement annuity
which would have been payable to the participant upon
attainment of the minimum age at which the penalty for early
retirement would not be applicable or the date of death,
whichever is later, based upon credits earned as of the date
of death.
(c) The maximum total survivors annuity payable on
account of the death of any person whose death occurs while
in receipt of a disability retirement annuity under Section
15-153.2 shall be the lesser of (1) 80% of his or her final
rate of earnings, (2) (A) $400 per month if one survivors
insurance beneficiary is entitled to a survivors annuity, or
(B) $600 per month if 2 or more survivors insurance
beneficiaries qualify for this benefit, or (3) 80% of the
retirement annuity which would have been payable upon
attainment of the age at which the penalty for early
retirement would not be applicable or the date of death,
whichever is later, based upon the participant's credits on
the date of death, or 80% of the disability retirement
annuity whichever is greater.
(d) If the minimum annuity provided under Section 15-146
exceeds the maximum annuity provided under this Section, the
minimum annuity shall be payable.
(e) 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.
(f) If a survivors insurance beneficiary qualifies for a
survivors or widows annuity because of pension credits
established by the participant or annuitant in another system
covered by Article 20, and the combined survivors annuities
exceed the highest survivors annuity which could be provided
by either system based upon the combined pension credits, the
survivors annuity payable by this system shall be reduced to
that amount which, when added to the survivors annuity
payable by the other system, would equal this highest
survivors annuity. If the other system has a similar
provision for adjustment of the survivors annuity, the
respective proportional survivors annuities shall be reduced
proportionately according to the ratio which the amount of
each proportional survivors annuity bears to the aggregate of
all proportional survivors annuities. If a survivors annuity
is payable by another system covered by Article 20, and the
survivor elects to waive the survivors annuity and accept a
lump sum payment or death benefit in lieu of the survivors
annuity, this system shall, for the purpose of adjusting the
survivors annuity under this subsection, assume that the
survivor was entitled to a survivors annuity which, in
accordance with actuarial tables of this system, is the
actuarial equivalent of the amount of the lump sum payment or
death benefit.
(g) The total monthly survivors annuity payable to the
beneficiaries of any annuitant who terminated employment
before July 14, 1959 and whose death occurs after September
16, 1977 shall not exceed $200.
(h) Whenever a reduction in the survivors annuity is
made as authorized above, the survivors annuity to each
dependent parent shall be proportionately reduced or
eliminated, and if further reduction is necessary, the
survivors annuity payable to every other person shall be
proportionately decreased.
(Source: P.A. 86-272.)
(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-2) The refund payable to a participant described in
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 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. 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 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,
or 5 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;
90-766, eff. 8-14-98.)
Section 90. Severability.
(a) It is the intent of the General Assembly that the
changes made by Section 25 of this amendatory Act of the 91st
General Assembly are not severable from one another, and
should any of the changes made by Section 25 be declared
invalid, then the remainder of those changes shall not remain
in effect.
(b) Except as set forth in subsection (a), the
provisions of this amendatory Act of the 91st General
Assembly are severable under Section 1.31 of the Statute on
Statutes. Without limiting the foregoing, it is the intent
of the General Assembly that should the provisions of Section
25 of this amendatory Act of the 91st General Assembly be
declared invalid, then the remainder of this Act shall remain
in effect.
Section 95. The State Mandates Act is amended by adding
Section 8.24 as follows:
(30 ILCS 805/8.24 new)
Sec. 8.24. Exempt mandate. Notwithstanding Sections 6
and 8 of this Act, no reimbursement by the State is required
for the implementation of any mandate created by this
amendatory Act of the 91st General Assembly.
Section 99. Effective date. This Act takes effect upon
becoming law.
[ Top ]