093_HB0005

 
                                     LRB093 02189 EFG 02196 b

 1        AN ACT in relation to public employee benefits.

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

 4        Section 5.  The  Illinois  Pension  Code  is  amended  by
 5    changing Sections 11-134, 11-134.1, 11-145.1, 11-163, 11-167,
 6    and 11-170.1 and adding Section 11-221.4 as follows:

 7        (40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
 8        Sec. 11-134.  Minimum annuities.
 9        (a)  An  employee  whose  withdrawal occurs after July 1,
10    1957 at age 60 or over, with 20 or more years of service, (as
11    service is defined or computed in Section 11-216),  for  whom
12    the  age  and  service  and prior service annuity combined is
13    less than the amount stated in this Section, shall, from  and
14    after  the  date  of  withdrawal,  in  lieu  of all annuities
15    otherwise provided in this Article, be entitled to receive an
16    annuity for life of an amount equal to 1 2/3% for  each  year
17    of  service,  of  the highest average annual salary for any 5
18    consecutive  years  within  the  last  10  years  of  service
19    immediately preceding the date of withdrawal; provided,  that
20    in the case of any employee who withdraws on or after July 1,
21    1971,  such  employee age 60 or over with 20 or more years of
22    service, shall be entitled to instead receive an annuity  for
23    life  equal  to  1.67%  for  each  of  the  first 10 years of
24    service; 1.90% for each of the  next  10  years  of  service;
25    2.10%  for  each  year  of  service  in  excess of 20 but not
26    exceeding 30; and 2.30% for each year of service in excess of
27    30, based on the highest average  annual  salary  for  any  4
28    consecutive  years  within  the  last  10  years  of  service
29    immediately preceding the date of withdrawal.
30        An  employee  who withdraws after July 1, 1957 and before
31    January 1, 1988, with 20 or more years of service, before age
 
                            -2-      LRB093 02189 EFG 02196 b
 1    60, shall be entitled to an annuity,  to  begin  not  earlier
 2    than  age 55, if under such age at withdrawal, as computed in
 3    the last preceding paragraph, reduced 0.25% if  the  employee
 4    was  born before January 1, 1936, or 0.5% if the employee was
 5    born on or after January 1, 1936,  for  each  full  month  or
 6    fractional  part  thereof  that  his  attained  age when such
 7    annuity is to begin is less than 60.
 8        Any employee born before January 1,  1936  who  withdraws
 9    with 20 or more years of service, and any employee with 20 or
10    more  years  of  service who withdraws on or after January 1,
11    1988, may elect to receive, in lieu  of  any  other  employee
12    annuity  provided  in this Section, an annuity for life equal
13    to 1.80% for each of the first 10 years of service, 2.00% for
14    each of the next 10 years of service, 2.20% for each year  of
15    service  in excess of 20, but not exceeding 30, and 2.40% for
16    each year of service in excess of 30, of the highest  average
17    annual  salary for any 4 consecutive years within the last 10
18    years  of  service  immediately   preceding   the   date   of
19    withdrawal, to begin not earlier than upon attained age of 55
20    years,  if  under  such  age at withdrawal, reduced 0.25% for
21    each full month or fractional part thereof that his  attained
22    age  when annuity is to begin is less than 60; except that an
23    employee retiring on or after January 1, 1988, at age  55  or
24    over  but  less  than  age  60,  having  at least 35 years of
25    service, or an employee retiring on or after July 1, 1990, at
26    age 55 or over but less than age 60, having at least 30 years
27    of service, or an employee retiring on or after the effective
28    date of this amendatory Act of 1997, at age 55  or  over  but
29    less  than age 60, having at least 25 years of service, shall
30    not be subject to the reduction in retirement annuity because
31    of retirement below age 60.
32        However, in the case of an employee  who  retired  on  or
33    after  January  1, 1985 but before January 1, 1988, at age 55
34    or older and with at least 35 years of service, and  who  was
 
                            -3-      LRB093 02189 EFG 02196 b
 1    subject  under  this  subsection  (a)  to  the  reduction  in
 2    retirement  annuity  because of retirement below age 60, that
 3    reduction shall cease to be effective January  1,  1991,  and
 4    the retirement annuity shall be recalculated accordingly.
 5        Any employee who withdraws on or after July 1, 1990, with
 6    20 or more years of service, may elect to receive, in lieu of
 7    any  other  employee  annuity  provided  in  this Section, an
 8    annuity for life equal to 2.20% for each year of  service  if
 9    withdrawal  is  before  January  1,  2002,  60 days after the
10    effective date of this amendatory Act  of  the  92nd  General
11    Assembly,  or 2.40% for each year of service if withdrawal is
12    on or after January 1, 2002, 60 days after the effective date
13    of this amendatory Act of the 92nd General Assembly or later,
14    of the highest average annual salary for  any  4  consecutive
15    years  within  the  last  10  years  of  service  immediately
16    preceding  the  date of withdrawal, to begin not earlier than
17    upon  attained  age  of  55  years,  if  under  such  age  at
18    withdrawal, reduced 0.25% for each full month  or  fractional
19    part  thereof  that his attained age when annuity is to begin
20    is less than 60; except that an employee retiring at  age  55
21    or  over  but  less  than age 60, having at least 30 years of
22    service, shall not be subject to the reduction in  retirement
23    annuity because of retirement below age 60.
24        Any employee who withdraws on or after the effective date
25    of  this  amendatory  Act  of  1997  with 20 or more years of
26    service may elect to receive, in lieu of any  other  employee
27    annuity  provided  in this Section, an annuity for life equal
28    to 2.20% for each year of service  if  withdrawal  is  before
29    January  1,  2002,  60  days after the effective date of this
30    amendatory Act of the 92nd General  Assembly,  or  2.40%  for
31    each  year of service if withdrawal is on or after January 1,
32    2002, 60 days after the effective date of this amendatory Act
33    of the 92nd General Assembly or later, of the highest average
34    annual salary for any 4 consecutive years within the last  10
 
                            -4-      LRB093 02189 EFG 02196 b
 1    years   of   service   immediately   preceding  the  date  of
 2    withdrawal, to begin not earlier than upon attainment of  age
 3    55 (age 50 if the employee has at least 30 years of service),
 4    reduced  0.25%  for  each  full month or remaining fractional
 5    part thereof that the employee's attained age when annuity is
 6    to begin is less than 60; except that an employee retiring at
 7    age 50 or over with at least 30 years of service or at age 55
 8    or over with at least  25  years  of  service  shall  not  be
 9    subject  to  the  reduction  in retirement annuity because of
10    retirement below age 60.
11        The maximum annuity payable under this paragraph  (a)  of
12    this  Section  shall not exceed 70% of highest average annual
13    salary in the case of an employee who withdraws prior to July
14    1, 1971, 75% if withdrawal takes place on or  after  July  1,
15    1971  and  prior  to  January  1,  2002,  60  days  after the
16    effective date of this amendatory Act  of  the  92nd  General
17    Assembly, or 80% if withdrawal is on or after January 1, 2002
18    60  days  after  the effective date of this amendatory Act of
19    the 92nd General Assembly or later.  For the purpose  of  the
20    minimum  annuity  provided in said paragraphs $1,500 shall be
21    considered the minimum annual salary for any  year;  and  the
22    maximum annual salary to be considered for the computation of
23    such  annuity  shall  be  $4,800  for any year prior to 1953,
24    $6,000 for the years 1953 to 1956, inclusive, and the  actual
25    annual  salary, as salary is defined in this Article, for any
26    year thereafter.
27        (b)  For an employee receiving  disability  benefit,  his
28    salary for annuity purposes under this Section shall, for all
29    periods of disability benefit subsequent to the year 1956, be
30    the amount on which his disability benefit was based.
31        (c)  An  employee with 20 or more years of service, whose
32    entire disability benefit  credit  period  expires  prior  to
33    attainment  of age 55 while still disabled for service, shall
34    be entitled upon withdrawal to the larger of (1) the  minimum
 
                            -5-      LRB093 02189 EFG 02196 b
 1    annuity  provided  above assuming that he is then age 55, and
 2    reducing such annuity to  its  actuarial  equivalent  at  his
 3    attained  age  on such date, or (2) the annuity provided from
 4    his age and service and prior service annuity credits.
 5        (d)  The minimum annuity provisions  as  aforesaid  shall
 6    not  apply  to  any former employee receiving an annuity from
 7    the fund, and who re-enters service as an employee, unless he
 8    renders at least 3 years of additional service after the date
 9    of re-entry.
10        (e)  An employee in service  on  July  1,  1947,  or  who
11    became  a contributor after July 1, 1947 and prior to July 1,
12    1950, or who shall become a contributor  to  the  fund  after
13    July  1,  1950  prior  to attainment of age 70, who withdraws
14    after age 65 with less than 20 years of service, for whom the
15    annuity has been fixed under the foregoing Sections  of  this
16    Article  shall,  in  lieu of the annuity so fixed, receive an
17    annuity as follows:
18        Such amount as he could have received had the accumulated
19    amounts for  annuity  been  improved  with  interest  at  the
20    effective   rate  to  the  date  of  his  withdrawal,  or  to
21    attainment of age 70, whichever is earlier, and had the  city
22    contributed  to such earlier date for age and service annuity
23    the amount that would have been contributed had he been under
24    age 65, after the date his annuity was  fixed  in  accordance
25    with  this  Article,  and  assuming his annuity were computed
26    from such accumulations as of his age on such  earlier  date.
27    The  annuity  so  computed shall not exceed the annuity which
28    would be payable under the other provisions of  this  Section
29    if  the  employee  was  credited with 20 years of service and
30    would qualify for annuity thereunder.
31        (f)  In lieu of the annuity provided in this  or  in  any
32    other  Section  of  this Article, an employee having attained
33    age 65 with at least 15 years of service who  withdraws  from
34    service  on  or after July 1, 1971 and whose annuity computed
 
                            -6-      LRB093 02189 EFG 02196 b
 1    under other provisions of  this  Article  is  less  than  the
 2    amount  provided  under  this  paragraph shall be entitled to
 3    receive a minimum annual annuity for life equal to 1% of  the
 4    highest  average  annual  salary  for any 4 consecutive years
 5    within the last 10 years  of  service  immediately  preceding
 6    retirement  for  each year of his service plus the sum of $25
 7    for each year of  service.  Such  annual  annuity  shall  not
 8    exceed  the maximum percentages stated under paragraph (a) of
 9    this Section of such highest average annual salary.
10        (f-1)  Instead of any other retirement  annuity  provided
11    in  this  Article,  an  employee who has at least 10 years of
12    service and withdraws from service on  or  after  January  1,
13    1999  may  elect  to  receive  a retirement annuity for life,
14    beginning no earlier than upon attainment of age 60, equal to
15    2.2% if withdrawal is before January 1, 2002, 60  days  after
16    the effective date of this amendatory Act of the 92nd General
17    Assembly or 2.4% for each year of service if withdrawal is on
18    or after January 1, 2002, 60 days after the effective date of
19    this amendatory Act of the 92nd General Assembly or later, of
20    final  average  salary for each year of service, subject to a
21    maximum of 75% of  final  average  salary  if  withdrawal  is
22    before  January  1, 2002, 60 days after the effective date of
23    this amendatory Act of the 92nd General Assembly, or  80%  if
24    withdrawal  is  on or after January 1, 2002 60 days after the
25    effective date of this amendatory Act  of  the  92nd  General
26    Assembly  or  later.    For  the  purpose of calculating this
27    annuity, "final average salary"  means  the  highest  average
28    annual  salary  for  any  4  consecutive years in the last 10
29    years of service.
30        (g)  Any annuity payable under the preceding  subsections
31    of  this  Section  11-134  shall  be  paid  in  equal monthly
32    installments.
33        (h)  The amendatory provisions of part  (a)  and  (f)  of
34    this Section shall be effective July 1, 1971 and apply in the
 
                            -7-      LRB093 02189 EFG 02196 b
 1    case  of  every  qualifying  employee withdrawing on or after
 2    July 1, 1971.
 3        (h-1)  The changes made to this  Section  by  Public  Act
 4    92-609  this  amendatory  Act  of  the  92nd General Assembly
 5    (increasing the  retirement  formula  to  2.4%  per  year  of
 6    service  and  increasing the maximum to 80%) apply to persons
 7    who withdraw from  service  on  or  after  January  1,  2002,
 8    regardless  of whether that withdrawal takes place before the
 9    effective date of that this amendatory Act.  In the case of a
10    person who withdraws from service on or after January 1, 2002
11    but begins to receive a retirement  annuity  before  July  1,
12    2002  the  effective date of this amendatory Act, the annuity
13    shall be  recalculated,  with  the  increase  resulting  from
14    Public  this amendatory Act 92-609 accruing from the date the
15    retirement annuity began.  The changes  made  by  Public  Act
16    92-609 control over the changes made by Public Act 92-599, as
17    provided in Section 95 of P.A. 92-609.
18        (i)  The  amendatory provisions of this amendatory Act of
19    1985  relating  to  the  discount  of  annuity   because   of
20    retirement  prior  to attainment of age 60 and increasing the
21    retirement formula for those born  before  January  1,  1936,
22    shall  apply  only  to qualifying employees withdrawing on or
23    after August 16, 1985.
24        (j)  Beginning on July  1,  2003  January  1,  1999,  the
25    minimum amount of employee's annuity shall be $1,050 $850 per
26    month  for  life  for  the  following  classes  of employees,
27    without regard to the fact that withdrawal occurred prior  to
28    the effective date of this amendatory Act of the 93rd General
29    Assembly 1998:
30             (1)  any  employee  annuitant  alive and receiving a
31        life annuity on the effective date of this amendatory Act
32        of the 93rd General Assembly 1998,  except  a  reciprocal
33        annuity;
34             (2)  any  employee  annuitant  alive and receiving a
 
                            -8-      LRB093 02189 EFG 02196 b
 1        term annuity on the effective date of this amendatory Act
 2        of the 93rd General Assembly 1998,  except  a  reciprocal
 3        annuity;
 4             (3)  any  employee  annuitant  alive and receiving a
 5        reciprocal  annuity  on  the  effective  date   of   this
 6        amendatory  Act  of the 93rd General Assembly 1998, whose
 7        service in this fund is at least 5 years;
 8             (4)  any employee annuitant withdrawing after age 60
 9        on or after the effective date of this amendatory Act  of
10        the 93rd General Assembly 1998, with at least 10 years of
11        service in this fund.
12        The  increases  granted  under  items (1), (2) and (3) of
13    this subsection (j) shall not be limited by any other Section
14    of this Act.
15    (Source: P.A. 92-599,  eff.  6-28-02;  92-609,  eff.  7-1-02;
16    revised 9-11-02.)

17        (40 ILCS 5/11-134.1) (from Ch. 108 1/2, par. 11-134.1)
18        Sec. 11-134.1. Automatic increase in annuity.
19        (a)  An  employee  who  retired  or  retires from service
20    after December 31, 1963, and before January 1,  1987,  having
21    attained  age  60  or more, shall, in the month of January of
22    the year following the year in which the first anniversary of
23    retirement occurs, have the amount  of  his  then  fixed  and
24    payable  monthly  annuity increased by 1 1/2%, and such first
25    fixed annuity as granted at retirement increased by a further
26    1 1/2% in January of each year  thereafter.   Beginning  with
27    January of the year 1972, such increases shall be at the rate
28    of  2%  in  lieu of the aforesaid specified 1 1/2%. Beginning
29    January, 1984, such increases shall be at  the  rate  of  3%.
30    Beginning  in January of 1999, such increases shall be at the
31    rate  of  3%  of  the  currently  payable  monthly   annuity,
32    including   any   increases  previously  granted  under  this
33    Article.  An employee who retires on annuity  after  December
 
                            -9-      LRB093 02189 EFG 02196 b
 1    31,  1963  and  before  January 1, 1987, but prior to age 60,
 2    shall receive such increases beginning with  January  of  the
 3    year  immediately  following the year in which he attains the
 4    age of 60 years.
 5        An employee who retires from service on or after  January
 6    1,  1987 shall, upon the first annuity payment date following
 7    the first anniversary of the date of retirement, or upon  the
 8    first  annuity  payment  date following attainment of age 60,
 9    whichever occurs later,  have  his  then  fixed  and  payable
10    monthly  annuity  increased  by 3%, and such annuity shall be
11    increased by an additional 3% of the original  fixed  annuity
12    on  the same date each year thereafter.  Beginning in January
13    of 1999, such increases shall be at the rate  of  3%  of  the
14    currently  payable  monthly  annuity, including any increases
15    previously granted under this Article.
16        (a-5) Notwithstanding the provisions of  subsection  (a),
17    upon  the  first annuity payment date following (1) the third
18    anniversary of retirement, (2) the attainment of age  53,  or
19    (3)  January  1,  2002,  the date 60 days after the effective
20    date of this amendatory Act of  the  92nd  General  Assembly,
21    whichever  occurs  latest, the monthly annuity of an employee
22    who retires on annuity prior to the attainment of age 60  and
23    who  has  not received an increase under subsection (a) shall
24    be increased by 3%, and the such annuity shall  be  increased
25    by  an  additional 3% of the current payable monthly annuity,
26    including any such increases previously  granted  under  this
27    Article,   on  the  same  date  each  year  thereafter.   The
28    increases provided under this subsection are in lieu  of  the
29    increases provided in subsection (a).
30        (a-6)  Notwithstanding  the provisions of subsections (a)
31    and (a-5), for all calendar years following the year in which
32    this amendatory  Act  of  the  93rd  General  Assembly  takes
33    effect,  an increase in annuity under this Section that would
34    otherwise take effect at  any  time  during  the  year  shall
 
                            -10-     LRB093 02189 EFG 02196 b
 1    instead take effect in January of that year.
 2        (b)  Subsections  (a),  and  (a-5),  and  (a-6)  are  not
 3    applicable  to  an  employee  retiring  and  receiving a term
 4    annuity, as defined in this Article,  nor  to  any  otherwise
 5    qualified  employee  who  retires  before  he shall have made
 6    employee contributions (at the 1/2 of 1% rate as  hereinafter
 7    provided) for the purposes of this additional annuity for not
 8    less  than  the  equivalent of one full year.  Such employee,
 9    however, shall make arrangement to pay to the fund a  balance
10    of  such  1/2 of 1% contributions, based on his final salary,
11    as will bring such 1/2 of 1% contributions, computed  without
12    interest,  to  the  equivalent of or completion of one year's
13    contributions.
14        Beginning with the month of January, 1964, each  employee
15    shall  contribute  by means of salary deductions 1/2 of 1% of
16    each salary payment, concurrently with and in addition to the
17    employee contributions otherwise made for annuity purposes.
18        Each  such  additional  employee  contribution  shall  be
19    credited to an account in the prior service annuity  reserve,
20    to  be  used, together with city contributions, to defray the
21    cost of the specified annuity increments. Any balance  as  of
22    the  beginning of each calendar year existing in such account
23    shall be credited with interest at the rate of 3% per annum.
24        Such employee  contributions  shall  not  be  subject  to
25    refund,  except  to  an employee who resigns or is discharged
26    and applies for refund under this Article, and also in  cases
27    where a term annuity becomes payable.
28        In   such  cases  the  employee  contributions  shall  be
29    refunded  him,  without  interest,   and   charged   to   the
30    aforementioned account in the prior service annuity reserve.
31    (Source:  P.A.  92-599,  eff.  6-28-02;  92-609, eff. 7-1-02;
32    revised 8-26-02.)

33        (40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
 
                            -11-     LRB093 02189 EFG 02196 b
 1        Sec. 11-145.1.  Minimum annuities for widows.
 2        The widow otherwise eligible for  widow's  annuity  under
 3    other Sections of this Article 11, of an employee hereinafter
 4    described,  who  retires  from  service  or dies while in the
 5    service subsequent to the effective date of  this  amendatory
 6    provision,  and for which widow the amount of widow's annuity
 7    and widow's prior service annuity combined, fixed or provided
 8    for such widow under other provisions of said Article  11  is
 9    less  than  the  amount hereinafter provided in this section,
10    shall, from and after the date her otherwise provided annuity
11    would begin, in lieu of such otherwise provided  widow's  and
12    widow's  prior  service annuity, be entitled to the following
13    indicated amount of annuity:
14        (a)  The widow of any employee who dies while in  service
15    on  or after the date on which he attains age 60 if the death
16    occurs before July 1, 1990, or on or after the date on  which
17    he  attains  age  55  if the death occurs on or after July 1,
18    1990, with at least 20 years of service, or on or  after  the
19    date  on  which  he  attains age 50 if the death occurs on or
20    after the effective date of this amendatory Act of 1997  with
21    at least 30 years of service, shall be entitled to an annuity
22    equal to one-half of the amount of annuity which her deceased
23    husband  would have been entitled to receive had he withdrawn
24    from the service on the day immediately preceding the date of
25    his death, conditional upon such widow having attained age 60
26    on or before such date if the death  occurs  before  July  1,
27    1990, or age 55 if the death occurs on or after July 1, 1990,
28    or age 50 if the death occurs on or after January 1, 1998 and
29    the  employee  is  age  50  or over with at least 30 years of
30    service or age 55 or over with at least 25 years of  service.
31    Except  as  provided  in  subsection (j), the widow's annuity
32    shall not, however, exceed the sum of $500  a  month  if  the
33    employee's  death  in service occurs before January 23, 1987.
34    The widow's annuity shall not be limited to a maximum  dollar
 
                            -12-     LRB093 02189 EFG 02196 b
 1    amount  if the employee's death in service occurs on or after
 2    January 23, 1987.
 3        If the employee dies in service before July 1, 1990,  and
 4    if  such  widow of such described employee shall not be 60 or
 5    more years of age on such date of death, the amount  provided
 6    in the immediately preceding paragraph for a widow 60 or more
 7    years  of  age,  shall, in the case of such younger widow, be
 8    reduced by 0.25% for each month that her then attained age is
 9    less than 60 years if the employee was born before January 1,
10    1936, or dies in service on or after January 1, 1988, or 0.5%
11    for each month that her then attained age  is  less  than  60
12    years  if  the  employee was born on or after January 1, 1936
13    and dies in service before January 1, 1988.
14        If the employee dies in service on or after July 1, 1990,
15    and if the widow of the employee has not attained age  55  on
16    or  before the employee's date of death, the amount otherwise
17    provided in this subsection (a) shall be reduced by 0.25% for
18    each month that her then attained age is less than 55  years;
19    except  that  if  the  employee  dies  in service on or after
20    January 1, 1998 at age 50 or over with at least 30  years  of
21    service  or  at  age  55  or  over  with at least 25 years of
22    service, there shall be no reduction due to the  widow's  age
23    if  she  has attained age 50 on or before the employee's date
24    of death, and if the widow has not  attained  age  50  on  or
25    before  the  employee's  date  of  death the amount otherwise
26    provided in this subsection (a) shall be reduced by 0.25% for
27    each month that her then attained age is less than 50 years.
28        (b)  The widow of any employee who dies subsequent to the
29    date of his retirement on annuity, and who so retired  on  or
30    after  the  date  on  which  he attained age 60 if retirement
31    occurs before July 1, 1990, or on or after the date on  which
32    he  attained  age 55 if retirement occurs on or after July 1,
33    1990, with at least 20 years of service, or on or  after  the
34    date  on which he attained age 50 if the retirement occurs on
 
                            -13-     LRB093 02189 EFG 02196 b
 1    or after the effective date of this amendatory  Act  of  1997
 2    with  at  least  30 years of service, shall be entitled to an
 3    annuity equal to one-half of the amount of annuity which  her
 4    deceased husband received as of the date of his retirement on
 5    annuity,  conditional  upon such widow having attained age 60
 6    on or before the date of her husband's retirement on  annuity
 7    if  retirement  occurs  before  July  1,  1990,  or age 55 if
 8    retirement occurs on or after July 1, 1990, or age 50 if  the
 9    retirement  on annuity occurs on or after January 1, 1998 and
10    the employee is age 50 or over with  at  least  30  years  of
11    service  or age 55 or over with at least 25 years of service.
12    Except as provided in subsection (j),  this  widow's  annuity
13    shall  not,  however,  exceed  the sum of $500 a month if the
14    employee's death occurs before January 23, 1987. The  widow's
15    annuity  shall  not  be limited to a maximum dollar amount if
16    the employee's death occurs on or  after  January  23,  1987,
17    regardless  of  the  date  of  retirement;  provided that, if
18    retirement was before  January  23,  1987,  the  employee  or
19    eligible spouse repays the excess spouse refund with interest
20    at  the effective rate from the date of refund to the date of
21    repayment.
22        If the date of the employee's retirement  on  annuity  is
23    before  July  1,  1990,  and  if such widow of such described
24    employee shall not have attained such age of 60 or more years
25    on such date of her  husband's  retirement  on  annuity,  the
26    amount  provided in the immediately preceding paragraph for a
27    widow 60 or more years of age on the date  of  her  husband's
28    retirement  on  annuity,  shall,  in  the  case  of such then
29    younger widow, be reduced by 0.25% for each  month  that  her
30    then  attained age was less than 60 years if the employee was
31    born before January 1, 1936, or withdraws from service on  or
32    after  January  1, 1988, or 0.5% for each month that her then
33    attained age was less than 60 years if the employee was  born
34    on or after January 1, 1936 and withdraws from service before
 
                            -14-     LRB093 02189 EFG 02196 b
 1    January 1, 1988.
 2        If the date of the employee's retirement on annuity is on
 3    or  after  July 1, 1990, and if the widow of the employee has
 4    not attained age 55 by the date of the employee's  retirement
 5    on  annuity, the amount otherwise provided in this subsection
 6    (b) shall be reduced by 0.25% for each month  that  her  then
 7    attained  age  is  less  than  55  years;  except that if the
 8    employee retires on annuity on or after January  1,  1998  at
 9    age 50 or over with at least 30 years of service or at age 55
10    or  over with at least 25 years of service, there shall be no
11    reduction due to the widow's age if she has attained  age  50
12    on  or  before the employee's date of death, and if the widow
13    has not attained age 50 on or before the employee's  date  of
14    death  the  amount  otherwise provided in this subsection (b)
15    shall be reduced by  0.25%  for  each  month  that  her  then
16    attained age is less than 50 years.
17        (c)  The   foregoing   provisions   relating  to  minimum
18    annuities for widows shall not apply  to  the  widow  of  any
19    former  employee receiving an annuity from the fund on August
20    2,  1965  or  on  the  effective  date  of  this   amendatory
21    provision, who re-enters service as a former employee, unless
22    such  employee renders at least 3 years of additional service
23    after the date of re-entry.
24        (d)  (Blank).
25        (e)  (Blank).
26        (f)  The amendments to this Section  by  this  amendatory
27    Act of 1985, relating to changing the discount because of age
28    from  1/2  of  1%  to 0.25% per month for widows of employees
29    born before January 1, 1936, shall apply only  to  qualifying
30    widows  whose  husbands  die while in the service on or after
31    August 16, 1985 or withdraw and enter on annuity on or  after
32    August 16, 1985.
33        (g)  Beginning  on  the  first  payment date occurring at
34    least 30 days after the effective date of this amendatory Act
 
                            -15-     LRB093 02189 EFG 02196 b
 1    of the 93rd General Assembly, January 1,  1999,  the  minimum
 2    amount  of widow's annuity shall be $1,000 $800 per month for
 3    life for the following classes of widows, without  regard  to
 4    the fact that the death of the employee occurred prior to the
 5    effective  date  of  this  amendatory Act of the 93rd General
 6    Assembly 1998:
 7             (1)  any widow annuitant alive and receiving a  term
 8        annuity  on  the effective date of this amendatory Act of
 9        the 93rd  General  Assembly  1998,  except  a  reciprocal
10        annuity;
11             (2)  any  widow annuitant alive and receiving a life
12        annuity on the effective date of this amendatory  Act  of
13        the  93rd  General  Assembly  1998,  except  a reciprocal
14        annuity;
15             (3)  any  widow  annuitant  alive  and  receiving  a
16        reciprocal  annuity  on  the  effective  date   of   this
17        amendatory  Act  of the 93rd General Assembly 1998, whose
18        employee spouse's service in this fund  was  at  least  5
19        years;
20             (4)  the widow of an employee with at least 10 years
21        of service in this fund who dies after retirement, if the
22        retirement  occurred  prior to the effective date of this
23        amendatory Act of the 93rd General Assembly 1998;
24             (5)  the widow of an employee with at least 10 years
25        of service in this fund who  dies  after  retirement,  if
26        withdrawal  occurs on or after the effective date of this
27        amendatory Act of the 93rd General Assembly 1998;
28             (6)  the widow of an employee who  dies  in  service
29        with  at  least  5  years of service in this fund, if the
30        death in service occurs on or after the effective date of
31        this amendatory Act of the 93rd General Assembly 1998.
32        The increases granted under items (1), (2), (3)  and  (4)
33    of  this  subsection  (g)  shall  not be limited by any other
34    Section of this Act.
 
                            -16-     LRB093 02189 EFG 02196 b
 1        (h)  The widow of an employee  who  retired  or  died  in
 2    service  on or after January 1, 1985 and before July 1, 1990,
 3    at age 55 or older, and with at least  35  years  of  service
 4    credit,  shall  be  entitled  to  have  her  widow's  annuity
 5    increased,  effective  January 1, 1991, to an amount equal to
 6    50% of the retirement  annuity  that  the  deceased  employee
 7    received  on  the  date  of  retirement,  or  would have been
 8    eligible to receive if he had retired on  the  day  preceding
 9    the  date of his death in service, provided that if the widow
10    had not attained  age  60  by  the  date  of  the  employee's
11    retirement  or  death  in  service, the amount of the annuity
12    shall be reduced by  0.25%  for  each  month  that  her  then
13    attained   age  was  less  than  age  60  if  the  employee's
14    retirement or death in service occurred on or  after  January
15    1,  1988, or by 0.5%  for each month that her attained age is
16    less than age 60 if the employee's  retirement  or  death  in
17    service occurred prior to January 1, 1988.  However, in cases
18    where  a  refund  of excess contributions for widow's annuity
19    has been paid by the Fund, the increase in  benefit  provided
20    by  this subsection (h) shall be contingent upon repayment of
21    the refund to the Fund with interest at  the  effective  rate
22    from the date of refund to the date of payment.
23        (i)  If  a  deceased  employee  is receiving a retirement
24    annuity at the time of death and  that  death  occurs  on  or
25    after  June 27, 1997, the widow may elect to receive, in lieu
26    of any other annuity provided under this Article, 50% of  the
27    deceased  employee's  retirement annuity at the time of death
28    reduced by 0.25% for each month that the widow's age  on  the
29    date  of  death  is less than 55; except that if the employee
30    dies on or after January 1, 1998 and withdrew from service on
31    or after June 27, 1997 at age 50 or over  with  at  least  30
32    years  of service or at age 55 or over with at least 25 years
33    of service, there shall be no reduction due  to  the  widow's
34    age  if  she  has attained age 50 on or before the employee's
 
                            -17-     LRB093 02189 EFG 02196 b
 1    date of death, and if the widow has not attained age 50 on or
 2    before the employee's date  of  death  the  amount  otherwise
 3    provided in this subsection (i) shall be reduced by 0.25% for
 4    each  month that her age on the date of death is less than 50
 5    years.   However,  in  cases  where  a   refund   of   excess
 6    contributions  for widow's annuity has been paid by the Fund,
 7    the benefit provided by this  subsection  (i)  is  contingent
 8    upon repayment of the refund to the Fund with interest at the
 9    effective  rate  from  the  date  of  refund  to  the date of
10    payment.
11        (j)  For widows of employees who died before January  23,
12    1987  after  retirement on annuity or in service, the maximum
13    dollar amount limitation on widow's annuity  shall  cease  to
14    apply,  beginning  with  the  first annuity payment after the
15    effective date of this amendatory Act of 1997; except that if
16    a refund of excess contributions for widow's annuity has been
17    paid by the Fund, the increase resulting from this subsection
18    (j) shall not begin before the refund has been repaid to  the
19    Fund,  together  with interest at the effective rate from the
20    date of the refund to the date of repayment.
21        (k)  In lieu  of  any  other  annuity  provided  in  this
22    Article,  an  eligible  spouse  of  an  employee  who dies in
23    service on or after January 1, 2002  (regardless  of  whether
24    that  death in service occurs prior to at least 60 days after
25    the effective date of this amendatory Act of  the  93rd  92nd
26    General  Assembly) with at least 10 years of service shall be
27    entitled to an annuity of 50% of the minimum formula  annuity
28    earned  and accrued to the credit of the employee at the date
29    of death.  For the purposes of this subsection,  the  minimum
30    formula  annuity  earned  and  accrued  to  the credit of the
31    employee is equal to 2.40% for each year of  service  of  the
32    highest  average  annual  salary  for any 4 consecutive years
33    within the last 10 years of service immediately preceding the
34    date of death, up to a maximum of 80% of the highest  average
 
                            -18-     LRB093 02189 EFG 02196 b
 1    annual  salary.  This annuity shall not be reduced due to the
 2    age of the employee or spouse.   In  addition  to  any  other
 3    eligibility  requirements  under  this Article, the spouse is
 4    eligible for this annuity only if the marriage was in  effect
 5    for 10 full years or more.
 6        (l)  In  lieu  of  any  other  annuity  provided  in this
 7    Article, an eligible spouse  of  any  employee  who  dies  in
 8    service on or after the effective date of this amendatory Act
 9    of  the  93rd  General  Assembly  with  at  least 10 years of
10    Laborers' service shall be entitled to  an  annuity  of  60%,
11    plus 1% for each year of total Laborers' service to a maximum
12    of  85%, of the minimum formula annuity earned and accrued to
13    the credit of the employee at the date of  death.    For  the
14    purposes  of  this  subsection,  the  minimum formula annuity
15    earned and accrued to the credit of the employee is equal to,
16    for each year of service, 2.4% of the highest average  annual
17    salary  for  any 4 consecutive years within the last 10 years
18    of service immediately preceding the  date  of  death,  to  a
19    maximum  of  80%  of the highest average annual salary.  This
20    annuity shall not be reduced due to the age of  the  employee
21    or spouse.
22        In lieu of any other annuity provided in this Article, an
23    eligible  spouse  of  any  employee  annuitant who dies after
24    retirement on or after the effective date of this  amendatory
25    Act  of  the  93rd General Assembly with at least 10 years of
26    Laborers' service shall be entitled to  an  annuity  of  60%,
27    plus 1% for each year of total Laborers' service to a maximum
28    of  85%, of the deceased employee's retirement annuity at the
29    time of death, reduced by  0.25%  for  each  month  that  the
30    widow's age on the date of death is less than 55; except that
31    if  the  employee  withdrew from service on or after June 27,
32    1997 at age 50 or over with at least 30 years of  service  or
33    at  age  55  or over with at least 25 years of service, there
34    shall be no reduction due to  the  widow's  age  if  she  has
 
                            -19-     LRB093 02189 EFG 02196 b
 1    attained  age  50  on or before the employee's date of death,
 2    and if the widow has not attained age 50  on  or  before  the
 3    employee's  date  of  death  the amount otherwise provided in
 4    this subsection (l) shall be reduced by 0.25% for each  month
 5    that  her  than attained age is less than 50 years.  However,
 6    in cases where a refund of excess contributions  for  widow's
 7    annuity  has  been  paid by the Fund, the benefit provided by
 8    this subsection (l)  is  contingent  upon  repayment  of  the
 9    refund  to  the Fund with interest at the effective rate from
10    the date of refund to the date of payment.
11        In addition to any other eligibility  requirements  under
12    this  Article, a spouse is eligible for an annuity under this
13    subsection (l) only if the marriage was in effect for 10 full
14    years or more at the date of retirement or death in service.
15    (Source: P.A. 92-599, eff. 6-28-02.)

16        (40 ILCS 5/11-163) (from Ch. 108 1/2, par. 11-163)
17        Sec. 11-163. Restoration of rights.  An employee who  has
18    withdrawn  as  a  refund  the  amounts  credited  for annuity
19    purposes, and who (i) re-enters service of the  employer  and
20    serves  for periods comprising at least 90 days 2 years after
21    the date of the last refund paid to him or (ii) has completed
22    at least 2 years of service under a participating system  (as
23    defined  in the Retirement Systems Reciprocal Act) other than
24    this Fund after the date of the last refund, shall  have  his
25    annuity rights restored by making application to the board in
26    writing  for the privilege of re-instating such rights and by
27    compliance with the following provisions:
28             (a)  After that 90 day or 2 year  period,  whichever
29        applies,  he  shall  repay  in full to the Fund, while in
30        service, in full  all  refunds  received,  together  with
31        interest at the effective rate from the application dates
32        of such refund or refunds to the date of repayment.;
33             (b)  If  payment  is  not  made  in  a  single  sum,
 
                            -20-     LRB093 02189 EFG 02196 b
 1        repayment  may be made in installments by deductions from
 2        salary or otherwise, in such manner and  amounts  as  the
 3        board,  by  rule,  may  prescribe,  with  interest at the
 4        effective rate accruing on the  unpaid  balance  employee
 5        may  elect.  The employee shall be credited with interest
 6        at the effective rate from the date of  each  installment
 7        until full repayment is made.
 8             (c)  If  the employee withdraws from service or dies
 9        in service before full repayment is made  or  during  the
10        required 90 day or 2 year period, service credit shall be
11        restored  in  accordance  with  Section  11-221.2(b)  any
12        repayments  made  shall  be  refunded,  without  interest
13        thereon  and  in accordance with the refund provisions of
14        this Article.
15             (d)  If  the  employee  repays  the   refund   while
16        participating  in  a  participating system (as defined in
17        the Retirement Systems Reciprocal Act)  other  than  this
18        Fund,  the  service  credit  restored  must be used for a
19        proportional annuity calculated in  accordance  with  the
20        Retirement  Systems  Reciprocal Act.  If not so used, the
21        restored service credit shall be forfeited and the amount
22        of the repayment shall be refunded, without interest.
23    (Source: Laws 1963, p. 161.)

24        (40 ILCS 5/11-167) (from Ch. 108 1/2, par. 11-167)
25        Sec. 11-167.  Refunds in lieu of annuity.  In lieu of  an
26    annuity,  an  employee who withdraws, and whose annuity would
27    amount to less than $800  a  month  for  life  may  elect  to
28    receive  a  refund of the total sum accumulated to his credit
29    from employee contributions for annuity purposes.
30        The widow of any employee, eligible for annuity upon  the
31    death of her husband, whose annuity would amount to less than
32    $800  a  month  for  life, may, in lieu of a widow's annuity,
33    elect to receive a refund of  the  accumulated  contributions
 
                            -21-     LRB093 02189 EFG 02196 b
 1    for annuity purposes, based on the amounts contributed by her
 2    deceased   employee  husband,  but  reduced  by  any  amounts
 3    theretofore paid to him in the form of an annuity  or  refund
 4    out of such accumulated contributions.
 5        Accumulated   contributions   shall   mean   the  amounts
 6    including  interest  credited  thereon  contributed  by   the
 7    employee  for age and service and widow's annuity to the date
 8    of his withdrawal  or  death,  whichever  first  occurs,  and
 9    including  the accumulations from any amounts contributed for
10    him as salary  deductions  while  receiving  duty  disability
11    benefits;  provided that such amounts contributed by the city
12    after December 31, 1983 while the employee is receiving  duty
13    disability  benefits and amounts credited to the employee for
14    annuity purposes by the fund after December  31,  2000  while
15    the  employee is receiving ordinary disability benefits shall
16    not be included.
17        The acceptance of such refund in lieu of widow's annuity,
18    on the part of a widow, shall not deprive a child or children
19    of the right to receive a child's annuity as provided  for in
20    Sections 11-153 and 11-154 of this Article, and neither shall
21    the payment of a child's annuity in the case of  such  refund
22    to  a  widow reduce the amount herein set forth as refundable
23    to such widow electing a refund in lieu of widow's annuity.
24    (Source: P.A. 91-887,  eff.  7-6-00;  92-599,  eff.  6-28-02;
25    revised 10-22-02.)

26        (40 ILCS 5/11-170.1) (from Ch. 108 1/2, par. 11-170.1)
27        Sec. 11-170.1. Pickup of employee contributions.
28        (a)  The  employer may pick up the employee contributions
29    required by Sections 11-156, 11-170, 11-174 and 11-175.1  for
30    salary   earned   after   December  31,  1981.   If  employee
31    contributions are not picked up, the amount that  would  have
32    been  picked  up  under  this  amendatory  Act  of 1980 shall
33    continue to be deducted from salary.   If  contributions  are
 
                            -22-     LRB093 02189 EFG 02196 b
 1    picked  up they shall be treated as employer contributions in
 2    determining tax treatment under the  United  States  Internal
 3    Revenue   Code;  however,  the  employer  shall  continue  to
 4    withhold Federal and state  income  taxes  based  upon  these
 5    contributions  until  the  Internal  Revenue  Service  or the
 6    Federal courts rule that pursuant to Section  414(h)  of  the
 7    United  States  Internal  Revenue  Code,  these contributions
 8    shall not be included as gross income of the  employee  until
 9    such  time  as  they  are distributed or made available.  The
10    employer shall pay these employee contributions from the same
11    source of funds  which  is  used  in  paying  salary  to  the
12    employee.   The employer may pick up these contributions by a
13    reduction in the cash salary of the employee or by an  offset
14    against  a  future  salary  increase or by a combination of a
15    reduction in  salary  and  offset  against  a  future  salary
16    increase.  If employee contributions are picked up they shall
17    be  treated  for  all  purposes of this Article 11, including
18    Section 11-169, in the same manner and to the same extent  as
19    employee contributions made prior to the date picked up.
20        (b)  Subject  to  the requirements of federal law and the
21    rules of the Board, the Fund may allow the employee to  elect
22    to  have the employer pick up the optional contributions that
23    the employee  has  elected  to  pay  to  the  Fund,  and  the
24    contributions  so  picked  up  shall  be  treated as employer
25    contributions for the  purpose  of  determining  federal  tax
26    treatment.  The employer shall pick up the contributions by a
27    reduction  in  the  cash salary of the employee and shall pay
28    contributions from the same source of funds that is  used  to
29    pay  earnings  of  the  employee.   The  election to have the
30    contributions picked up  is  irrevocable,  and  the  optional
31    contributions  may  not  thereafter  be  prepaid,  by  direct
32    payment or otherwise.
33        If  the  provision  authorizing the optional contribution
34    requires payment by a stated date (rather than  the  date  of
 
                            -23-     LRB093 02189 EFG 02196 b
 1    withdrawal  or retirement), the requirement will be deemed to
 2    have been satisfied if (i) on or before the stated  date  the
 3    employee  executes  a  valid irrevocable election to have the
 4    contributions picked up under this subsection, and  (ii)  the
 5    picked-up  contributions  are  in  fact  paid  to the Fund as
 6    provided in the election.
 7        If  employee  contributions  are  picked  up  under  this
 8    subsection, they shall be treated for all  purposes  of  this
 9    Article  11, including Section 11-169, in the same manner and
10    to the same extent as optional  employee  contributions  made
11    prior to the date picked up.
12    (Source: P.A. 81-1536.)

13        (40 ILCS 5/11-221.4 new)
14        Sec.  11-221.4.  Credit for certain military service.  In
15    addition to any creditable service established under  Section
16    11-221,  creditable  service for annuity purposes only may be
17    granted for service in the armed forces of the United  States
18    that  was  not  immediately  preceded  by  service  with  the
19    employer.  A member shall receive service credit for military
20    service   under  this  Section,  provided  that  all  of  the
21    following conditions are met:
22             (1)  The employee must be employed by  the  employer
23        and  contributing to the Fund for current service when he
24        makes the payment for military service.
25             (2)  The employee must have  entered  or  re-entered
26        the  service  of  the  employer  within 2 years after his
27        discharge.
28             (3)  The discharge from military service  must  have
29        been other than a dishonorable discharge.
30             (4)  The  employee must apply to the Fund in writing
31        and provide evidence of  the  military  service  that  is
32        satisfactory to the Board.
33             (5)  The  employee  must  have  paid  for all unpaid
 
                            -24-     LRB093 02189 EFG 02196 b
 1        service with the employer (refund repayment, payment  for
 2        temporary   service,   or  any  other  service  with  the
 3        employer) before payment may be made under this Section.
 4             (6)  The employee must  have  been  in  active  duty
 5        military service; service in the military reserves is not
 6        eligible under this Section.
 7             (7)  The  employee  must  not  receive credit in any
 8        other pension plan for this period of military service.
 9             (8)  The employee must contribute  to  the  Fund  an
10        amount representing employee contributions.  The required
11        contribution  shall  be  calculated by the Fund, based on
12        the contribution  rates in effect during  the  period  of
13        military  service  and  the employee's salary rate on the
14        first day of service in the Fund following  the  military
15        service, and shall include interest at the effective rate
16        from  the  employee's  first  day  of service in the Fund
17        following the military service to the  date  of  payment.
18        The  employee  must pay the required contribution in full
19        before withdrawal or death in service.  If  the  employee
20        withdraws or dies in service before full payment is made,
21        the amount paid by him shall be refunded.
22             (9)  The   amount   of   military   service   credit
23        established by an employee under this Section, when added
24        to  his credit for military service under Section 11-221,
25        shall not exceed 5 years.

26        Section 90.  The State Mandates Act is amended by  adding
27    Section 8.27 as follows:

28        (30 ILCS 805/8.27 new)
29        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
30    and 8 of this Act, no reimbursement by the State is  required
31    for  the  implementation  of  any  mandate  created  by  this
32    amendatory Act of the 93rd General Assembly.
 
                            -25-     LRB093 02189 EFG 02196 b
 1        Section  99.  Effective date.  This Act takes effect upon
 2    becoming law.