093_HB3183eng

 
HB3183 Engrossed                     LRB093 07931 EFG 08122 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  1-119,  15-107, 15-112, 15-113.3, 15-134,
 6    15-136,  15-153,  15-154,  15-158.2,  15-186.1,  15-187,  and
 7    15-190 as follows:

 8        (40 ILCS 5/1-119)
 9        Sec.  1-119.   Qualified  Illinois   Domestic   Relations
10    Orders.
11        (a)  For the purposes of this Section:
12             (1)  "Alternate  payee"  means  the  spouse,  former
13        spouse,  child,  or  other  dependent  of  a  member,  as
14        designated in a QILDRO.
15             (2)  "Death  benefit"  means any nonperiodic benefit
16        payable upon the death of a member to a survivor  of  the
17        member   or   to   the   member's  estate  or  designated
18        beneficiary,  including  any  refund   of   contributions
19        following  the member's death, whether or not the benefit
20        is so called under the applicable Article of this Code.
21             (3)  "Disability  benefit"  means  any  periodic  or
22        nonperiodic benefit payable to a disabled member based on
23        occupational or nonoccupational  disability  or  disease,
24        including  any  periodic  or nonperiodic increases in the
25        benefit, whether or not the benefit is  so  called  under
26        the applicable Article of this Code.
27             (4)  "Member"  means  any person who participates in
28        or has service credits in a retirement system,  including
29        a  person  who  is  receiving or is eligible to receive a
30        retirement  or  disability  benefit,  without  regard  to
31        whether the person has withdrawn from service.
 
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 1             (5)  "Member's refund" means a return of  all  or  a
 2        portion  of  a  member's contributions that is elected by
 3        the member (or provided  by  operation  of  law)  and  is
 4        payable before the member's death.
 5             (6)  "Qualified  Illinois  Domestic Relations Order"
 6        or "QILDRO" means an Illinois court order that creates or
 7        recognizes the existence of an alternate payee's right to
 8        receive all or a portion of a member's  accrued  benefits
 9        in  a  retirement  system,  is  issued  pursuant  to this
10        Section and Section 503(b)(2) of  the  Illinois  Marriage
11        and   Dissolution   of   Marriage   Act,  and  meets  the
12        requirements of this Section.  A QILDRO is not  the  same
13        as  a  qualified  domestic relations order or QDRO issued
14        pursuant to Section 414(p) of the Internal  Revenue  Code
15        of  1986.   The requirements of paragraphs (2) and (3) of
16        that Section do not apply to  orders  issued  under  this
17        Section   and   shall  not  be  deemed  a  guide  to  the
18        interpretation of this Section; a QILDRO is  intended  to
19        be  a  domestic  relations  order  within  the meaning of
20        paragraph (11) of that Section.
21             (7)  "Regular payee" means  the  person  to  whom  a
22        benefit  would  be payable in the absence of an effective
23        QILDRO.
24             (8)  "Retirement  benefit"  means  any  periodic  or
25        nonperiodic benefit payable to a retired member based  on
26        age  or  service,  or  on  the amounts accumulated to the
27        credit of the member for retirement  purposes,  including
28        any  periodic  or  nonperiodic  increases in the benefit,
29        whether or  not  the  benefit  is  so  called  under  the
30        applicable Article of this Code.
31             (9)  "Retirement   system"  or  "system"  means  any
32        retirement system, pension fund, or other public employee
33        retirement benefit plan that is maintained or established
34        under any of Articles 2 through 18 of this Code.
 
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 1             (10)  "Surviving  spouse"  means  the  spouse  of  a
 2        member at the time of the member's death.
 3             (11)  "Survivor's  benefit"   means   any   periodic
 4        benefit  payable to a surviving spouse, child, parent, or
 5        other  survivor  of  a  deceased  member,  including  any
 6        periodic or nonperiodic increases in the benefit, whether
 7        or not the benefit is  so  called  under  the  applicable
 8        Article of this Code.
 9        (b) (1)  An Illinois court of competent jurisdiction in a
10    proceeding  for  declaration of invalidity of marriage, legal
11    separation, or dissolution of marriage that provides for  the
12    distribution  of  property,  or  any  proceeding  to amend or
13    enforce such a property distribution, may order that  all  or
14    any  part  of  any  (i)  retirement  benefit or (ii) member's
15    refund payable to or on behalf of the member be instead  paid
16    by the retirement system to a designated alternate payee.
17        (2)  An order issued under this Section provides only for
18    the  diversion  to  an  alternate  payee  of certain benefits
19    otherwise  payable  by  the  retirement  system   under   the
20    provisions of this Code.  The existence of a QILDRO shall not
21    cause the retirement system to pay any benefit, or any amount
22    of  benefit,  to  an alternate payee that would not have been
23    payable by the system to a regular payee in  the  absence  of
24    the QILDRO.
25        (3)  A  QILDRO  shall not affect the vesting, accrual, or
26    amount of any benefit, nor the date or conditions upon  which
27    any  benefit  becomes payable, nor the right of the member or
28    the  member's  survivors  to  make  any  election   otherwise
29    authorized under this Code, except as provided in subsections
30    (i) and (j).
31        (4)  A QILDRO shall not apply to or affect the payment of
32    any  survivor's  benefit,  death benefit, disability benefit,
33    life insurance benefit, or health insurance benefit.
34        (c) (1)  A  QILDRO  must  contain  the  name,   residence
 
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 1    address,  and social security number of the member and of the
 2    alternate payee and must identify the  retirement  system  to
 3    which it is directed and the court issuing the order.
 4        (2)  A  QILDRO  must  specify  each  benefit  to which it
 5    applies, and it must specify the amount of the benefit to  be
 6    paid  to  the  alternate  payee,  which  in  the  case  of  a
 7    nonperiodic  benefit  shall  be  expressed as a dollar amount
 8    (except that a nonperiodic benefit payable  to  an  alternate
 9    payee  of  a  participant in the self-managed plan authorized
10    under Article 15 of this Code may be expressed  as  a  dollar
11    amount  or as a percentage of the participant's account), and
12    in the case of a periodic benefit shall  be  expressed  as  a
13    dollar amount per month.
14        (3)  With  respect to each benefit to which it applies, a
15    QILDRO must specify when the order will take effect.  In  the
16    case of a periodic benefit that is being paid at the time the
17    order  is received, a QILDRO shall take effect immediately or
18    on a specified later date; if it takes effect immediately, it
19    shall become effective on  the  first  benefit  payment  date
20    occurring at least 30 days after the order is received by the
21    retirement  system.   In  the  case  of  any other benefit, a
22    QILDRO shall take effect when the  benefit  becomes  payable,
23    except  that a lump-sum benefit payable to an alternate payee
24    of a participant in the self-managed  plan  authorized  under
25    Article  15  of this Code may be paid upon the request of the
26    alternate payee.  However, in no event shall a  QILDRO  apply
27    to any benefit paid by the retirement system before or within
28    30 days after the order is received.  A retirement system may
29    adopt  rules  to  prorate  the  amount of the first and final
30    periodic payments to an alternate payee.
31        (4)  A QILDRO must also contain any  provisions  required
32    under subsection (n) or (p).
33        (d) (1)  An  order issued under this Section shall not be
34    implemented unless a certified copy of  the  order  has  been
 
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 1    filed  with the retirement system.  The system shall promptly
 2    notify the member and the alternate payee by first class mail
 3    of its receipt of the order.
 4        (2)  Neither the retirement system, nor  its  board,  nor
 5    any  of  its  employees  shall  be  liable to the member, the
 6    regular payee, or any  other  person  for  any  amount  of  a
 7    benefit  that  is paid in good faith to an alternate payee in
 8    accordance with a QILDRO.
 9        (3)  At the time the order is submitted to the retirement
10    system, it  shall  be  accompanied  by  a  nonrefundable  $50
11    processing  fee  payable to the retirement system, to be used
12    by the system to defer any administrative costs  arising  out
13    of the implementation of the QILDRO.
14        (e) (1)  Each   alternate   payee   is   responsible  for
15    maintaining a current residence  address  on  file  with  the
16    retirement  system.  The retirement system shall have no duty
17    to attempt to locate any alternate payee by any  means  other
18    than  sending written notice to the last known address of the
19    alternate payee on file with the system.
20        (2)  In the  event  that  the  system  cannot  locate  an
21    alternate  payee  when  a benefit becomes payable, the system
22    shall hold the amount of the benefit payable to the alternate
23    payee and make payment to the alternate payee if he or she is
24    located within the following  180  days.   If  the  alternate
25    payee  has not been located within 180 days from the date the
26    benefit becomes payable, the system shall pay the benefit and
27    the amounts held to the  regular  payee.   If  the  alternate
28    payee  is  subsequently  located,  the system shall thereupon
29    implement the QILDRO, but the interest of the alternate payee
30    in any amounts already paid to the  regular  payee  shall  be
31    extinguished.   Amounts  held under this subsection shall not
32    bear interest.
33        (f) (1)  If the amount of a benefit that is specified  in
34    a  QILDRO   for  payment  to  an  alternate payee exceeds the
 
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 1    actual amount of  that  benefit  payable  by  the  retirement
 2    system,  the  excess  shall  be  disregarded.  The retirement
 3    system shall have no liability to any alternate payee or  any
 4    other person for the disregarded amounts.
 5        (2)  In  the  event of multiple QILDROs against a member,
 6    the retirement system shall honor all of the QILDROs  to  the
 7    extent  possible.   However, if the total amount of a benefit
 8    to be paid to alternate payees under all  QILDROs  in  effect
 9    against  the member exceeds the actual amount of that benefit
10    payable by the system, the QILDROs shall be satisfied in  the
11    order  of their receipt by the system until the amount of the
12    benefit is exhausted, and shall not  be  adjusted  pro  rata.
13    Any  amounts  that  cannot  be  paid due to exhaustion of the
14    benefit shall remain unpaid, and the retirement system  shall
15    have  no liability to any alternate payee or any other person
16    for such amounts.
17        (3)  A modification of a QILDRO shall be filed  with  the
18    retirement  system  in  the  same  manner as a new QILDRO.  A
19    modification that does not increase the amount of any benefit
20    payable to the alternate  payee,  and  does  not  expand  the
21    QILDRO  to  affect any benefit not affected by the unmodified
22    QILDRO,  does  not  affect  the  priority  of  payment  under
23    subdivision (f)(2); the priority of payment of a QILDRO  that
24    has  been  modified  to  increase  the  amount of any benefit
25    payable to the alternate payee, or to expand  the  QILDRO  to
26    affect a benefit not affected by the unmodified QILDRO, shall
27    be  based  on  the  date  on  which  the  system receives the
28    modification of the QILDRO.
29        (g) (1)  Upon the death of the alternate  payee  under  a
30    QILDRO,  the  QILDRO  shall expire and cease to be effective,
31    and in the absence of another QILDRO, the  right  to  receive
32    any affected benefit shall revert to the regular payee.
33        (2)  All  QILDROs relating to a member's participation in
34    a particular retirement system shall expire and cease  to  be
 
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 1    effective  upon  the  issuance  of  a  member's  refund  that
 2    terminates  the  member's  participation  in  that retirement
 3    system, without regard to whether the refund was paid to  the
 4    member  or  to an alternate payee under a QILDRO.  An expired
 5    QILDRO shall not be automatically revived by  any  subsequent
 6    return by the member to service under that retirement system.
 7        (h) (1)  Within  45  days after receiving a subpoena from
 8    any party to a proceeding for declaration  of  invalidity  of
 9    marriage,  legal  separation,  or  dissolution of marriage in
10    which a QILDRO may be issued, or after  receiving  a  request
11    from  the member, a retirement system shall issue a statement
12    of a member's accumulated  contributions,  accrued  benefits,
13    and   other   interests  in  the  plan  administered  by  the
14    retirement system based on the data on file with  the  system
15    on  the  date  the  subpoena is received, and of any relevant
16    procedures, rules, or modifications to the model QILDRO  form
17    that have been adopted by the retirement system.
18        (2)  In  no event shall the retirement system be required
19    to furnish to any person  an  actuarial  opinion  as  to  the
20    present value of the member's benefits or other interests.
21        (3)  The  papers, entries, and records, or parts thereof,
22    of any retirement system may be proved  by  a  copy  thereof,
23    certified  under the signature of the secretary of the system
24    or other duly appointed keeper of the records of  the  system
25    and the corporate seal, if any.
26        (i)  In   a  retirement  system  in  which  a  member  or
27    beneficiary is required to apply to the system for payment of
28    a benefit,  the  required  application  may  be  made  by  an
29    alternate  payee who is entitled to all of that benefit under
30    a  QILDRO,  provided  that  all  other   qualifications   and
31    requirements have been met.  However, the alternate payee may
32    not  make the required application for a member's refund or a
33    retirement benefit if the member  is  in  active  service  or
34    below   the   minimum   age  for  receiving  an  undiscounted
 
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 1    retirement annuity in the retirement system that has received
 2    the QILDRO or in any other retirement  system  in  which  the
 3    member  has  creditable  service  and  in  which the member's
 4    rights under the Retirement Systems Reciprocal Act  would  be
 5    affected as a result of the alternate payee's application for
 6    a member's refund or retirement benefit.
 7        (j) (1)  So  long as there is in effect a QILDRO relating
 8    to a member's retirement benefit, the affected member may not
 9    elect a form of payment that has the  effect  of  diminishing
10    the  amount  of  the  payment to which any alternate payee is
11    entitled, unless the alternate payee  has  consented  to  the
12    election  in writing and this consent has been filed with the
13    retirement system.
14        (2)  If a member attempts to make an election  prohibited
15    under  subdivision (j)(1), the retirement system shall reject
16    the election and advise the member of the need to obtain  the
17    alternate payee's consent.
18        (3)  If   a  retirement  system  discovers  that  it  has
19    mistakenly allowed an election prohibited  under  subdivision
20    (j)(1),   it  shall  thereupon  disallow  that  election  and
21    recalculate any benefits affected  thereby.   If  the  system
22    determines that an amount paid to a regular payee should have
23    been  paid  to  an  alternate  payee,  the  system  shall, if
24    possible, recoup the amounts as provided in subsection (k) of
25    this Section.
26        (k)  In the event that a regular payee  or  an  alternate
27    payee  is  overpaid,  the  retirement system shall recoup the
28    amounts by deducting the overpayment from future payments and
29    making payment to the  other  payee.   The  system  may  make
30    deductions  for  recoupment over a period of time in the same
31    manner as is provided by law or rule for  the  recoupment  of
32    other   amounts   incorrectly  disbursed  by  the  system  in
33    instances not involving  a  QILDRO.   The  retirement  system
34    shall incur no liability to either the alternate payee or the
 
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 1    regular  payee as a result of any payment made in good faith,
 2    regardless of  whether  the  system  is  able  to  accomplish
 3    recoupment.
 4        (l) (1)  A   retirement   system  that  has,  before  the
 5    effective date of this Section, received  and  implemented  a
 6    domestic relations order that directs payment of a benefit to
 7    a  person  other  than  the  regular  payee  may  continue to
 8    implement that order, and shall not be liable to the  regular
 9    payee for any amounts paid in good faith to that other person
10    in accordance with the order.
11        (2)  A  domestic  relations  order directing payment of a
12    benefit to a person other than the  regular  payee  that  was
13    issued  by a court but not implemented by a retirement system
14    prior to the effective date of this Section  shall  be  void.
15    However,  a  person who is the beneficiary or alternate payee
16    of a domestic relations order that  is  rendered  void  under
17    this  subsection may petition the court that issued the order
18    for an amended order that complies with this Section.
19        (m) (1)  In accordance with Article XIII,  Section  5  of
20    the  Illinois Constitution, which prohibits the impairment or
21    diminishment of benefits granted under this  Code,  a  QILDRO
22    issued  against  a  member of a retirement system established
23    under an Article of this Code that  exempts  the  payment  of
24    benefits or refunds from attachment, garnishment, judgment or
25    other  legal  process  shall  not  be  effective  without the
26    written  consent  of  the  member   if   the   member   began
27    participating  in  the  retirement  system  on  or before the
28    effective date of this Section.  That  consent  must  specify
29    the  retirement  system, the court case number, and the names
30    and social security numbers of the member and  the  alternate
31    payee.   The  consent  must  accompany  the QILDRO when it is
32    filed  with  the  retirement   system,   and   must   be   in
33    substantially the following form:

34                    CONSENT TO ISSUANCE OF QILDRO
 
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 1    Court Case Number: ....................
 2    Member's Social Security Number: ........................
 3    Alternate payee's Social Security Number: ...............
 4        I,  (name),  a  member of the (retirement system), hereby
 5    consent to the issuance  of  a  Qualified  Illinois  Domestic
 6    Relations  Order.  I understand that under the Order, certain
 7    benefits that would otherwise be payable  to  me,  or  to  my
 8    surviving  spouse or estate, will instead be payable to (name
 9    of alternate payee).  I also  understand  that  my  right  to
10    elect  certain  forms  of payment of my retirement benefit or
11    member's refund may be limited as a result of the Order.
12        DATED:.......................
13        SIGNED:......................

14        (2)  A member's consent to the issuance of a QILDRO shall
15    be irrevocable, and shall apply to any QILDRO  that  pertains
16    to  the  alternate  payee  and retirement system named in the
17    consent.
18        (n)  An order issued  under  this  Section  shall  be  in
19    substantially  the  following  form  (omitting any provisions
20    that are not applicable):

21             QUALIFIED ILLINOIS DOMESTIC RELATIONS ORDER

22        THIS CAUSE coming before the Court for the purpose of the
23    entry of a Qualified Illinois Domestic Relations Order  under
24    the provisions of Section 1-119 of the Illinois Pension Code,
25    the  Court  having  jurisdiction  over  the  parties  and the
26    subject matter hereof;  the Court finding  that  one  of  the
27    parties to this proceeding is a member of a retirement system
28    subject  to  Section 1-119 of the Illinois Pension Code, this
29    Order is entered to implement  a  division  of  that  party's
30    interest  in the retirement system; and the Court being fully
31    advised;
32        IT IS HEREBY ORDERED AS FOLLOWS:
33        (1)  The definitions  and  other  provisions  of  Section
 
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 1    1-119  of  the Illinois Pension Code are adopted by reference
 2    and made a part of this Order.
 3        (2)  Identification of Retirement System and parties:
 4             Retirement System: (name and address)
 5             Member: (name, residence address and social security
 6        number)
 7             Alternate payee: (name, residence address and social
 8        security number)
 9        (3)  The  Retirement  System  shall  pay  the   indicated
10    amounts  of the following specified benefits to the alternate
11    payee under the following terms and conditions:
12             (i)  Of  the  member's   retirement   benefit,   the
13        Retirement  System  shall  pay  to  the  alternate  payee
14        $......  per  month, beginning (if the benefit is already
15        being paid, either immediately or on  a  specified  later
16        date;  otherwise,  on  the  date  the  retirement benefit
17        commences),  and  ending  upon  the  termination  of  the
18        retirement benefit or the death of the  alternate  payee,
19        whichever occurs first.
20             (ii)  Of  any  member's refund that becomes payable,
21        the Retirement System shall pay to  the  alternate  payee
22        $...... when the member's refund becomes payable.
23        (4)  In  accordance  with subsection (j) of Section 1-119
24    of the Illinois Pension Code, so long as this  QILDRO  is  in
25    effect,  the  member  may  not elect a form of payment of the
26    retirement benefit that has the  effect  of  diminishing  the
27    amount  of  the  payment  to  which  the  alternate  payee is
28    entitled, unless the alternate payee  has  consented  to  the
29    election  in writing and this consent has been filed with the
30    retirement system.
31        (5)  If the member began participating in the  Retirement
32    System  before the effective date of this Section, this Order
33    shall not take  effect  unless  accompanied  by  the  written
34    consent  of  the  member  as required under subsection (m) of
 
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 1    Section 1-119 of the Illinois Pension Code.
 2        (6)  The Court retains jurisdiction to modify this Order.

 3        DATED:.......................

 4        SIGNED:......................

 5        (o) (1)  A court in Illinois that  has  issued  a  QILDRO
 6    shall  retain  jurisdiction  of  all  issues  relating to the
 7    modification of the QILDRO.  The  Administrative  Review  Law
 8    and the rules adopted pursuant thereto shall govern and apply
 9    to   all   proceedings   for   judicial   review   of   final
10    administrative  decisions  of  the  board  of trustees of the
11    retirement system arising under this Section.
12        (2)  The term "administrative decision" is defined as  in
13    Section  3-101 of the Code of Civil Procedure.  The venue for
14    review under the Administrative Review Law shall be the  same
15    as   is   provided  by  law  for  judicial  review  of  other
16    administrative decisions of the retirement system.
17        (p) (1)  Each retirement system may adopt any  procedures
18    or   rules   that  it  deems  necessary  or  useful  for  the
19    implementation of this Section.
20        (2)  Each retirement system may by rule modify the  model
21    QILDRO  form  provided  in  subsection  (n)  or  require that
22    additional information be included in  QILDROs  presented  to
23    the  system,  as  may  be  necessary to meet the needs of the
24    retirement system.
25    (Source: P.A. 90-731, eff. 7-1-99.)

26        (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
27        Sec. 15-107.  Employee.
28        (a)  "Employee" means  any  member  of  the  educational,
29    administrative,  secretarial,  clerical, mechanical, labor or
30    other staff of an employer whose employment is permanent  and
31    continuous or who is employed in a position in which services
32    are  expected  to  be  rendered  on a continuous basis for at
 
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 1    least 4 months or one academic term, whichever is  less,  who
 2    (A)  receives  payment  for  personal  services  on a warrant
 3    issued pursuant to a payroll voucher certified by an employer
 4    and drawn by the State Comptroller upon the  State  Treasurer
 5    or  by an employer upon trust, federal or other funds, or (B)
 6    is on a leave of absence without pay.   Employment  which  is
 7    irregular,  intermittent or temporary shall not be considered
 8    continuous for purposes of this paragraph.
 9        However, a person is not an "employee" if he or she:
10             (1)  is  a  student  enrolled   in   and   regularly
11        attending  classes in a college or university which is an
12        employer, and is employed on a temporary  basis  at  less
13        than full time;
14             (2)  is  currently receiving a retirement annuity or
15        a disability retirement annuity  under  Section  15-153.2
16        from this System;
17             (3)  is on a military leave of absence;
18             (4)  is eligible to participate in the Federal Civil
19        Service   Retirement   System  and  is  currently  making
20        contributions to that system based upon earnings paid  by
21        an employer;
22             (5)  is  on  leave  of  absence without pay for more
23        than  60  days  immediately  following   termination   of
24        disability benefits under this Article;
25             (6)  is  hired  after  June  30,  1979  as  a public
26        service employment program participant under the  Federal
27        Comprehensive  Employment  and  Training Act and receives
28        earnings in whole or in part from  funds  provided  under
29        that Act; or
30             (7)  is employed on or after July 1, 1991 to perform
31        services  that  are  excluded by subdivision (a)(7)(f) or
32        (a)(19) of Section 210 of the federal Social Security Act
33        from the definition of employment given in  that  Section
34        (42 U.S.C. 410).; or
 
HB3183 Engrossed            -14-     LRB093 07931 EFG 08122 b
 1             (8)  participates   in   an   optional  program  for
 2        part-time workers under Section 15-158.1.
 3        (b)  Any employer may, by filing a  written  notice  with
 4    the  board,  exclude  from  the  definition of "employee" all
 5    persons employed pursuant  to  a  federally  funded  contract
 6    entered  into  after  July  1,  1982  with a federal military
 7    department  in  a  program  providing  training  in  military
 8    courses to federal military  personnel  on  a  military  site
 9    owned  by  the United States Government, if this exclusion is
10    not prohibited by the federally funded  contract  or  federal
11    laws or rules governing the administration of the contract.
12        (c)  Any person appointed by the Governor under the Civil
13    Administrative Code of the State is an employee, if he or she
14    is  a participant in this system on the effective date of the
15    appointment.
16        (d)  A participant on lay-off status under civil  service
17    rules  is  considered  an employee for not more than 120 days
18    from the date of the lay-off.
19        (e)  A participant is considered an employee  during  (1)
20    the first 60 days of disability leave, (2) the period, not to
21    exceed  one  year,  in  which  his  or  her  eligibility  for
22    disability  benefits  is  being  considered  by  the board or
23    reviewed by the courts, and (3) the period he or she receives
24    disability benefits under the provisions of  Section  15-152,
25    workers'  compensation  or  occupational disease benefits, or
26    disability income under an insurance contract financed wholly
27    or partially by the employer.
28        (f)  Absences without pay, other than  formal  leaves  of
29    absence, of less than 30 calendar days, are not considered as
30    an interruption of a person's status as an employee.  If such
31    absences  during any period of 12 months exceed 30 work days,
32    the  employee  status  of  the  person   is   considered   as
33    interrupted as of the 31st work day.
34        (g)  A  staff  member  whose employment contract requires
 
HB3183 Engrossed            -15-     LRB093 07931 EFG 08122 b
 1    services during an academic  term  is  to  be  considered  an
 2    employee during the summer and other vacation periods, unless
 3    he  or she declines an employment contract for the succeeding
 4    academic term or his or her employment  status  is  otherwise
 5    terminated,  and  he or she receives no earnings during these
 6    periods.
 7        (h)  An  individual  who  was  a  participating  employee
 8    employed  in  the  fire  department  of  the  University   of
 9    Illinois's  Champaign-Urbana  campus immediately prior to the
10    elimination of that fire department and who immediately after
11    the elimination of that fire department  became  employed  by
12    the  fire  department  of  the  City of Urbana or the City of
13    Champaign shall continue to be considered as an employee  for
14    purposes  of  this  Article  for  so  long  as the individual
15    remains employed as a firefighter by the City  of  Urbana  or
16    the  City  of  Champaign.   The  individual shall cease to be
17    considered an employee under this  subsection  (h)  upon  the
18    first   termination  of  the  individual's  employment  as  a
19    firefighter by the City of Urbana or the City of Champaign.
20        (i)  An individual who is employed on a  full-time  basis
21    as an officer or employee of a statewide teacher organization
22    that  serves  System participants or an officer of a national
23    teacher organization  that  serves  System  participants  may
24    participate  in  the  System and shall be deemed an employee,
25    provided  that  (1)  the  individual  has  previously  earned
26    creditable service under this  Article,  (2)  the  individual
27    files  with  the  System  an irrevocable election to become a
28    participant, and (3) the individual does not  receive  credit
29    for that employment under any other Article of this Code.  An
30    employee  under this subsection (i) is responsible for paying
31    to the System both (A) employee contributions  based  on  the
32    actual  compensation  received  for  service with the teacher
33    organization and (B)  employer  contributions  equal  to  the
34    normal  costs  (as  defined in Section 15-155) resulting from
 
HB3183 Engrossed            -16-     LRB093 07931 EFG 08122 b
 1    that service; all or any part of these contributions  may  be
 2    paid  on  the employee's behalf or picked up for tax purposes
 3    (if  authorized   under   federal   law)   by   the   teacher
 4    organization.
 5        A person who is an employee as defined in this subsection
 6    (i) may establish service credit for similar employment prior
 7    to  becoming  an  employee under this subsection by paying to
 8    the System for that employment the contributions specified in
 9    this subsection, plus interest at the effective rate from the
10    date of service to the  date  of  payment.   However,  credit
11    shall not be granted under this subsection for any such prior
12    employment  for which the applicant received credit under any
13    other provision of this Code, or during which  the  applicant
14    was on a leave of absence under Section 15-113.2.
15    (Source:  P.A.  90-448,  eff.  8-16-97; 90-576, eff. 3-31-98;
16    90-766, eff. 8-14-98; 91-887, eff. 7-6-00.)

17        (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
18        Sec. 15-112.  Final rate of  earnings.   "Final  rate  of
19    earnings":  For an employee who is paid on an hourly basis or
20    who receives an  annual  salary  in  installments  during  12
21    months  of  each  academic  year, the average annual earnings
22    during the 48 consecutive calendar month period  ending  with
23    the  last  day  of  final  termination of employment or the 4
24    consecutive academic years of service in which the employee's
25    earnings were the highest, whichever is  greater.    For  any
26    other  employee,  the  average  annual  earnings during the 4
27    consecutive academic years of service in  which  his  or  her
28    earnings  were the highest. For an employee with less than 48
29    months or  4  consecutive  academic  years  of  service,  the
30    average  earnings during his or her entire period of service.
31    The earnings of an employee  with  more  than  36  months  of
32    service  prior to the date of becoming a participant are, for
33    such period, considered equal to the average earnings  during
 
HB3183 Engrossed            -17-     LRB093 07931 EFG 08122 b
 1    the last 36 months of such service.  For an employee on leave
 2    of  absence  with pay, or on leave of absence without pay who
 3    makes contributions during such leave, earnings  are  assumed
 4    to  be  equal to the basic compensation on the date the leave
 5    began.  For an employee on  disability  leave,  earnings  are
 6    assumed  to  be  equal  to the basic compensation on the date
 7    disability occurs or  the  average  earnings  during  the  24
 8    months  immediately  preceding  the month in which disability
 9    occurs, whichever is greater.
10        For a participant who retires on or after  the  effective
11    date of this amendatory Act of 1997 with at least 20 years of
12    service  as  a  firefighter  or  police  officer  under  this
13    Article,  the final rate of earnings shall be the annual rate
14    of earnings received by the participant on his  or  her  last
15    day as a firefighter or police officer under this Article, if
16    that is greater than the final rate of earnings as calculated
17    under the other provisions of this Section.
18        If  a  participant  is  an employee for at least 6 months
19    during the academic year in which his or  her  employment  is
20    terminated, the annual final rate of earnings shall be 25% of
21    the  sum  of (1) the annual basic compensation for that year,
22    and (2) the amount earned during the  36  months  immediately
23    preceding  that  year, if this is greater than the final rate
24    of earnings as calculated under the other provisions of  this
25    Section.
26        In the determination of the final rate of earnings for an
27    employee,  that  part  of  an  employee's  earnings  for  any
28    academic  year  beginning  after June 30, 1997, which exceeds
29    the employee's earnings with that employer for the  preceding
30    year  by more than 20 percent shall be excluded; in the event
31    that an employee has more than one employer  this  limitation
32    shall  be  calculated  separately  for the earnings with each
33    employer.   In  making  such  calculation,  only  the   basic
34    compensation of employees shall be considered, without regard
 
HB3183 Engrossed            -18-     LRB093 07931 EFG 08122 b
 1    to   vacation   or   overtime  or  to  contracts  for  summer
 2    employment.
 3        The  following  are  not  considered   as   earnings   in
 4    determining   final   rate  of  earnings:  (1)  severance  or
 5    separation pay, (2) retirement pay, (3)  payment  for  unused
 6    sick  leave, and (4) payments from an employer for the period
 7    used in determining final rate of earnings  for  any  purpose
 8    other  than  (i)  services rendered, (ii) leave of absence or
 9    vacation granted during that period, and (iii) vacation of up
10    to 56 work  days  allowed  upon  termination  of  employment;
11    except  that,  if the benefit has been collectively bargained
12    between the employer and the recognized collective bargaining
13    agent pursuant to the Illinois  Educational  Labor  Relations
14    Act,  payment  received  during  a period of up to 2 academic
15    years for unused sick leave may be considered as earnings  in
16    accordance   with   the   applicable   collective  bargaining
17    agreement, subject to the 20%  increase  limitation  of  this
18    Section.   Any unused sick leave considered as earnings under
19    this Section shall not be taken into account  in  calculating
20    service credit under Section 15-113.4.
21        Intermittent  periods  of  service shall be considered as
22    consecutive in determining final rate of earnings.
23    (Source: P.A. 91-887, eff. 7-6-00; 92-599, eff. 6-28-02.)

24        (40 ILCS 5/15-113.3) (from Ch. 108 1/2, par. 15-113.3)
25        Sec. 15-113.3.  Service for periods of military  service.
26    "Service  for  periods  of military service":  Those periods,
27    not exceeding 5 years, during which a person  served  in  the
28    armed  forces  of the United States, of which all but 2 years
29    must have immediately followed a period of employment with an
30    employer under this System or the State Employees' Retirement
31    System of Illinois;  provided  that  the  person  received  a
32    discharge   other  than  dishonorable  and  again  became  an
33    employee under this System within one year  after  discharge.
 
HB3183 Engrossed            -19-     LRB093 07931 EFG 08122 b
 1    However,  for  the  up  to  2  years  of military service not
 2    immediately following employment,  the  applicant  must  make
 3    contributions  to  the System equal to (1) 8% of at the rates
 4    provided in Section 15-157 based upon  the  employee's  basic
 5    compensation  on  the  last  date as a participating employee
 6    prior to such military service, or on the  first  date  as  a
 7    participating employee after such military service, whichever
 8    is  greater, plus (2) an amount determined by the board to be
 9    equal to the employer's normal cost of the  benefits  accrued
10    for such military service, plus (3) interest on items (1) and
11    (2) at the effective rate from the later of the date of first
12    membership  in  the  System  or  the  date  of  conclusion of
13    military service to the date of payment.  The change  in  the
14    required  contribution  for purchased military credit made by
15    this amendatory Act of 1993 does not entitle any person to  a
16    refund of contributions already paid.  The contributions paid
17    under this Section are not normal contributions as defined in
18    Section  15-114  or  additional  contributions  as defined in
19    Section 15-115.
20        The changes to this Section made by this  amendatory  Act
21    of  1991  shall apply not only to persons who on or after its
22    effective date are in service under the System, but  also  to
23    persons  whose  employment  terminated  prior  to  that date,
24    whether or not the person is an annuitant on that  date.   In
25    the  case  of  an  annuitant who applies for credit allowable
26    under this Section for a period of military service that  did
27    not  immediately  follow  employment,  and  who  has made the
28    required contributions for such credit, the annuity shall  be
29    recalculated  to  include the additional service credit, with
30    the increase taking effect on the date  the  System  received
31    written  notification  of  the annuitant's intent to purchase
32    the credit, if payment of all the required  contributions  is
33    made  within  60  days  of  such notice, or else on the first
34    annuity payment date following the date  of  payment  of  the
 
HB3183 Engrossed            -20-     LRB093 07931 EFG 08122 b
 1    required  contributions.  In calculating the automatic annual
 2    increase for an annuity that has been recalculated under this
 3    Section, the increase attributable to the additional  service
 4    allowable under this amendatory Act of 1991 shall be included
 5    in  the  calculation  of  automatic annual increases accruing
 6    after the effective date of the recalculation.
 7    (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)

 8        (40 ILCS 5/15-134) (from Ch. 108 1/2, par. 15-134)
 9        Sec. 15-134.  Participant.
10        (a)  Each person shall, as  a  condition  of  employment,
11    become  a  participant  and be subject to this Article on the
12    date that he or she becomes an employee, makes an election to
13    participate in, or otherwise becomes a participant in one  of
14    the retirement programs offered under this Article, whichever
15    date is later.
16        An  employee  who becomes a participant shall continue to
17    be a participant until he or she becomes an  annuitant,  dies
18    or  accepts  a  refund of contributions, except that a person
19    shall not be deemed a participant while participating  in  an
20    optional  program  for  part-time  workers  established under
21    Section 15-158.1.
22        (b)  A  person  employed  concurrently  by  2   or   more
23    employers  is  eligible  to  participate  in  the  system  on
24    compensation received from all employers.
25    (Source: P.A.  89-430,  eff.  12-15-95;  90-65,  eff. 7-7-97;
26    90-448, eff. 8-16-97; 90-655, eff. 7-30-98.)

27        (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
28        Sec.  15-136.  Retirement  annuities   -   Amount.    The
29    provisions  of  this  Section  15-136  apply  only  to  those
30    participants who are participating in the traditional benefit
31    package  or  the portable benefit package and do not apply to
32    participants who are participating in the self-managed plan.
 
HB3183 Engrossed            -21-     LRB093 07931 EFG 08122 b
 1        (a)  The amount of a  participant's  retirement  annuity,
 2    expressed  in  the  form  of  a single-life annuity, shall be
 3    determined by whichever of the following rules is  applicable
 4    and provides the largest annuity:
 5        Rule  1:  The  retirement annuity shall be 1.67% of final
 6    rate of earnings for each of the first 10 years  of  service,
 7    1.90%  for  each  of  the next 10 years of service, 2.10% for
 8    each year of service in excess of 20 but  not  exceeding  30,
 9    and  2.30%  for each year in excess of 30; or for persons who
10    retire on or after January 1, 1998, 2.2% of the final rate of
11    earnings for each year of service.
12        Rule 2:  The retirement annuity shall be the sum  of  the
13    following,   determined   from   amounts   credited   to  the
14    participant in accordance with the actuarial tables  and  the
15    prescribed  rate  of  interest  in  effect  at  the  time the
16    retirement annuity begins:
17             (i)  the normal annuity which can be provided on  an
18        actuarially  equivalent  basis, by the accumulated normal
19        contributions as of the date the annuity begins; and
20             (ii)  an annuity from employer contributions  of  an
21        amount  equal  to  that  which  can  be  provided  on  an
22        actuarially  equivalent basis from the accumulated normal
23        contributions  made  by  the  participant  under  Section
24        15-113.6 and Section 15-113.7 plus 1.4  times  all  other
25        accumulated normal contributions made by the participant;
26        and
27             (iii)  the  annuity  that  can  be  provided  on  an
28        actuarially equivalent basis from the entire contribution
29        made by the participant under Section 15-113.3.
30        With  respect  to  a  police  officer  or firefighter who
31    retires on or after August 14, 1998, the  accumulated  normal
32    contributions  taken  into account under clauses (i) and (ii)
33    of  this  Rule  2  shall  include   the   additional   normal
34    contributions made by the police officer or firefighter under
 
HB3183 Engrossed            -22-     LRB093 07931 EFG 08122 b
 1    Section 15-157(a).
 2        The  amount of a retirement annuity calculated under this
 3    Rule  2  shall  be  computed  solely  on  the  basis  of  the
 4    participant's accumulated normal contributions, as  specified
 5    in  this  Rule  and  defined  in  Section  15-116. Neither an
 6    employee or employer contribution for early retirement  under
 7    Section 15-136.2 nor any other employer contribution shall be
 8    used in the calculation of the amount of a retirement annuity
 9    under this Rule 2.
10        This  amendatory  Act  of  the 91st General Assembly is a
11    clarification  of  existing  law   and   applies   to   every
12    participant and annuitant without regard to whether status as
13    an  employee  terminates  before  the  effective date of this
14    amendatory Act.
15        Rule 3:  The retirement annuity of a participant  who  is
16    employed  at  least  one-half time during the period on which
17    his or her final rate of earnings is based, shall be equal to
18    the  participant's  years  of  service  not  to  exceed   30,
19    multiplied  by  (1)  $96  if  the participant's final rate of
20    earnings is less than $3,500, (2) $108 if the final  rate  of
21    earnings is at least $3,500 but less than $4,500, (3) $120 if
22    the  final  rate of earnings is at least $4,500 but less than
23    $5,500, (4) $132 if the final rate of earnings  is  at  least
24    $5,500  but  less  than $6,500, (5) $144 if the final rate of
25    earnings is at least $6,500 but less than $7,500, (6) $156 if
26    the final rate of earnings is at least $7,500 but  less  than
27    $8,500,  (7)  $168  if the final rate of earnings is at least
28    $8,500 but less than $9,500, and (8) $180 if the  final  rate
29    of  earnings  is  $9,500 or more, except that the annuity for
30    those  persons  having  made  an   election   under   Section
31    15-154(a-1)   shall  be  calculated  and  payable  under  the
32    portable  retirement  benefit   program   pursuant   to   the
33    provisions of Section 15-136.4.
34        Rule  4:  A participant who is at least age 50 and has 25
 
HB3183 Engrossed            -23-     LRB093 07931 EFG 08122 b
 1    or more years of service as a police officer or  firefighter,
 2    and  a  participant who is age 55 or over and has at least 20
 3    but less than 25 years of service  as  a  police  officer  or
 4    firefighter,  shall  be  entitled  to a retirement annuity of
 5    2 1/4% of the final rate of earnings for each of the first 10
 6    years of service as a police officer or  firefighter,  2 1/2%
 7    for  each of the next 10 years of service as a police officer
 8    or firefighter, and 2 3/4% for each  year  of  service  as  a
 9    police   officer   or  firefighter  in  excess  of  20.   The
10    retirement annuity for all other service  shall  be  computed
11    under Rule 1.
12        For purposes of this Rule 4, a participant's service as a
13    firefighter shall also include the following:
14             (i)  service  that  is performed while the person is
15        an employee under subsection (h) of Section 15-107; and
16             (ii)  in  the  case  of  an  individual  who  was  a
17        participating employee employed in the fire department of
18        the  University  of  Illinois's  Champaign-Urbana  campus
19        immediately  prior  to  the  elimination  of  that   fire
20        department  and  who immediately after the elimination of
21        that fire department transferred to another job with  the
22        University  of Illinois, service performed as an employee
23        of the University of Illinois in a  position  other  than
24        police  officer  or  firefighter,  from  the date of that
25        transfer until the employee's next termination of service
26        with the University of Illinois.
27        Rule 5:  The retirement  annuity  of  a  participant  who
28    elected  early  retirement  under  the  provisions of Section
29    15-136.2 and who, on or before  February  16,  1995,  brought
30    administrative  proceedings  pursuant  to  the administrative
31    rules adopted by the System to challenge the  calculation  of
32    his  or  her  retirement  annuity  shall  be  the  sum of the
33    following,  determined   from   amounts   credited   to   the
34    participant  in  accordance with the actuarial tables and the
 
HB3183 Engrossed            -24-     LRB093 07931 EFG 08122 b
 1    prescribed rate  of  interest  in  effect  at  the  time  the
 2    retirement annuity begins:
 3             (i)  the  normal annuity which can be provided on an
 4        actuarially equivalent basis, by the  accumulated  normal
 5        contributions as of the date the annuity begins; and
 6             (ii)  an  annuity  from employer contributions of an
 7        amount  equal  to  that  which  can  be  provided  on  an
 8        actuarially equivalent basis from the accumulated  normal
 9        contributions  made  by  the  participant  under  Section
10        15-113.6  and  Section  15-113.7 plus 1.4 times all other
11        accumulated normal contributions made by the participant;
12        and
13             (iii)  an  annuity  which  can  be  provided  on  an
14        actuarially   equivalent   basis   from   the    employee
15        contribution for early retirement under Section 15-136.2,
16        and  an  annuity from employer contributions of an amount
17        equal to that which can be  provided  on  an  actuarially
18        equivalent basis from the employee contribution for early
19        retirement under Section 15-136.2.
20        In  no event shall a retirement annuity under this Rule 5
21    be lower than the amount obtained by adding (1)  the  monthly
22    amount   obtained  by  dividing  the  combined  employee  and
23    employer contributions made under  Section  15-136.2  by  the
24    System's annuity factor for the age of the participant at the
25    beginning  of  the  annuity payment period and (2) the amount
26    equal to the participant's annuity if calculated  under  Rule
27    1, reduced under Section 15-136(b) as if no contributions had
28    been made under Section 15-136.2.
29        With  respect  to  a  participant  who is qualified for a
30    retirement annuity under this Rule 5 whose retirement annuity
31    began before the effective date of this amendatory Act of the
32    91st General Assembly, and for whom an employee  contribution
33    was made under Section 15-136.2, the System shall recalculate
34    the  retirement  annuity  under this Rule 5 and shall pay any
 
HB3183 Engrossed            -25-     LRB093 07931 EFG 08122 b
 1    additional amounts due in  the  manner  provided  in  Section
 2    15-186.1 for benefits mistakenly set too low.
 3        The  amount of a retirement annuity calculated under this
 4    Rule 5 shall  be  computed  solely  on  the  basis  of  those
 5    contributions  specifically set forth in this Rule 5.  Except
 6    as provided in clause  (iii)  of  this  Rule  5,  neither  an
 7    employee nor employer contribution for early retirement under
 8    Section  15-136.2, nor any other employer contribution, shall
 9    be used in the calculation of  the  amount  of  a  retirement
10    annuity under this Rule 5.
11        The General Assembly has adopted the changes set forth in
12    Section  25  of  this  amendatory  Act  of  the  91st General
13    Assembly in recognition that the decision  of  the  Appellate
14    Court for the Fourth District in Mattis v. State Universities
15    Retirement  System  et al. might be deemed to give some right
16    to the plaintiff in that case.  The changes made  by  Section
17    25  of this amendatory Act of the 91st General Assembly are a
18    legislative implementation of the decision of  the  Appellate
19    Court for the Fourth District in Mattis v. State Universities
20    Retirement System et al. with respect to that plaintiff.
21        The  changes made by Section 25 of this amendatory Act of
22    the 91st General Assembly apply without regard to whether the
23    person is in service as an employee on or after its effective
24    date.
25        (b)  The retirement annuity provided under Rules 1 and  3
26    above  shall  be  reduced  by  1/2  of  1% for each month the
27    participant is under  age  60  at  the  time  of  retirement.
28    However,  this  reduction  shall  not  apply in the following
29    cases:
30             (1)  For a  disabled  participant  whose  disability
31        benefits  have  been  discontinued  because he or she has
32        exhausted  eligibility  for  disability  benefits   under
33        clause (6) of Section 15-152;
34             (2)  For  a  participant who has at least the number
 
HB3183 Engrossed            -26-     LRB093 07931 EFG 08122 b
 1        of years of service required to retire at any  age  under
 2        subsection (a) of Section 15-135; or
 3             (3)  For  that portion of a retirement annuity which
 4        has  been  provided  on  account  of   service   of   the
 5        participant  during  periods when he or she performed the
 6        duties of a  police  officer  or  firefighter,  if  these
 7        duties  were  performed  for at least 5 years immediately
 8        preceding the date the retirement annuity is to begin.
 9        (c)  The maximum retirement annuity provided under  Rules
10    1, 2, 4, and 5 shall be the lesser of (1) the annual limit of
11    benefits  as specified in Section 415 of the Internal Revenue
12    Code of 1986, as such Section may be  amended  from  time  to
13    time  and  as  such  benefit  limits shall be adjusted by the
14    Commissioner of Internal Revenue, and (2) 80% of  final  rate
15    of earnings.
16        (d)  An  annuitant whose status as an employee terminates
17    after August 14, 1969 shall receive  automatic  increases  in
18    his or her retirement annuity as follows:
19        Effective  January  1  immediately following the date the
20    retirement annuity begins, the  annuitant  shall  receive  an
21    increase  in  his or her monthly retirement annuity of 0.125%
22    of the monthly retirement annuity provided under Rule 1, Rule
23    2, Rule 3, Rule 4, or Rule  5,  contained  in  this  Section,
24    multiplied  by  the  number of full months which elapsed from
25    the date the retirement annuity payments began to January  1,
26    1972,  plus 0.1667% of such annuity, multiplied by the number
27    of full months which elapsed from January  1,  1972,  or  the
28    date  the  retirement  annuity  payments  began, whichever is
29    later, to  January  1,  1978,  plus  0.25%  of  such  annuity
30    multiplied  by  the  number of full months which elapsed from
31    January 1, 1978, or the date the retirement annuity  payments
32    began,  whichever  is  later,  to  the  effective date of the
33    increase.
34        The annuitant shall receive an increase  in  his  or  her
 
HB3183 Engrossed            -27-     LRB093 07931 EFG 08122 b
 1    monthly  retirement  annuity  on  each  January  1 thereafter
 2    during the annuitant's life of  3%  of  the  monthly  annuity
 3    provided  under  Rule  1,  Rule  2, Rule 3, Rule 4, or Rule 5
 4    contained in  this  Section.   The  change  made  under  this
 5    subsection  by  P.A.  81-970 is effective January 1, 1980 and
 6    applies  to  each  annuitant  whose  status  as  an  employee
 7    terminates before or after that date.
 8        Beginning January 1, 1990, all automatic annual increases
 9    payable  under  this  Section  shall  be  calculated   as   a
10    percentage  of  the  total annuity payable at the time of the
11    increase, including all increases  previously  granted  under
12    this Article.
13        The  change  made  in  this subsection by P.A. 85-1008 is
14    effective January 26, 1988, and is applicable without  regard
15    to whether status as an employee terminated before that date.
16        (e)  If,  on  January 1, 1987, or the date the retirement
17    annuity payment period begins, whichever is later, the sum of
18    the retirement annuity provided under Rule 1  or  Rule  2  of
19    this  Section  and  the  automatic  annual increases provided
20    under the preceding subsection or Section  15-136.1,  amounts
21    to  less  than the retirement annuity which would be provided
22    by Rule 3, the retirement annuity shall be  increased  as  of
23    January  1,  1987, or the date the retirement annuity payment
24    period begins, whichever is later, to the amount which  would
25    be  provided by Rule 3 of this Section. Such increased amount
26    shall be considered as the retirement annuity in  determining
27    benefits  provided under other Sections of this Article. This
28    paragraph applies without regard  to  whether  status  as  an
29    employee   terminated  before  the  effective  date  of  this
30    amendatory Act of  1987,  provided  that  the  annuitant  was
31    employed  at  least  one-half time during the period on which
32    the final rate of earnings was based.
33        (f)  A participant is entitled to such additional annuity
34    as may be provided on an actuarially equivalent basis, by any
 
HB3183 Engrossed            -28-     LRB093 07931 EFG 08122 b
 1    accumulated additional contributions to his  or  her  credit.
 2    However, the additional contributions made by the participant
 3    toward the automatic increases in annuity provided under this
 4    Section  shall  not  be taken into account in determining the
 5    amount of such additional annuity.
 6        (g)  If, (1) by law, a function of a  governmental  unit,
 7    as  defined by Section 20-107 of this Code, is transferred in
 8    whole or in part  to  an  employer,  and  (2)  a  participant
 9    transfers  employment  from  such  governmental  unit to such
10    employer within 6 months after the transfer of the  function,
11    and (3) the sum of (A) the annuity payable to the participant
12    under  Rule  1,  2, or 3 of this Section (B) all proportional
13    annuities payable to the participant by all other  retirement
14    systems  covered  by  Article 20, and (C) the initial primary
15    insurance amount to which the participant is  entitled  under
16    the  Social Security Act, is less than the retirement annuity
17    which would have been payable if  all  of  the  participant's
18    pension  credits  validated  under  Section  20-109  had been
19    validated under this system, a supplemental annuity equal  to
20    the  difference  in  such  amounts  shall  be  payable to the
21    participant.
22        (h)  On January 1, 1981, an annuitant who was receiving a
23    retirement annuity on or before January 1,  1971  shall  have
24    his  or  her  retirement annuity then being paid increased $1
25    per month for each year of creditable service. On January  1,
26    1982,  an  annuitant  whose  retirement  annuity  began on or
27    before January 1, 1977, shall  have  his  or  her  retirement
28    annuity  then being paid increased $1 per month for each year
29    of creditable service.
30        (i)  On January 1, 1987, any annuitant  whose  retirement
31    annuity  began  on  or before January 1, 1977, shall have the
32    monthly retirement annuity increased by an amount equal to 8¢
33    per year of creditable service times the number of years that
34    have elapsed since the annuity began.
 
HB3183 Engrossed            -29-     LRB093 07931 EFG 08122 b
 1    (Source: P.A. 91-887  (Sections  20  and  25),  eff.  7-6-00;
 2    92-16, eff. 6-28-01.)

 3        (40 ILCS 5/15-153) (from Ch. 108 1/2, par. 15-153)
 4        Sec.   15-153.    Disability   benefits   -  Amount.  The
 5    disability benefit shall be the greater of  (1)  50%  of  the
 6    basic  compensation  which  would  have  been  paid  had  the
 7    participant continued in service for the entire period during
 8    which  disability  benefits  are  payable,  excluding wage or
 9    salary increases subsequent to  the  date  of  disability  or
10    extra  prospective  earnings on a summer teaching contract or
11    other extra service not yet entered upon or (2)  50%  of  the
12    participant's   average   earnings   during   the  24  months
13    immediately preceding the month in which  disability  occurs.
14    In determining the disability benefit, the basic compensation
15    of a participating employee on leave of absence or on lay-off
16    status  shall  be  assumed  to  be  equal to his or her basic
17    compensation on the date the  leave  of  absence  or  lay-off
18    begins.
19        If  the  disability benefit is 50% of basic compensation,
20    payments during the academic fiscal year  shall  accrue  over
21    the  period  that the basic compensation would have been paid
22    had the participant continued in service.  If the  disability
23    benefit  is  50%  of  the average earnings of the participant
24    during the 24 months immediately preceding the month in which
25    disability occurs, payments during the year shall accrue over
26    a period of 12 months. Disability benefits shall be  paid  as
27    of  the  end  of  each  calendar  month during which payments
28    accrue. Payments for fractional parts of  a  month  shall  be
29    determined by prorating the total amount payable for the full
30    month  on  the  basis of days elapsing during the month.  Any
31    disability benefit accrued but  unpaid  on  the  death  of  a
32    participant shall be paid to the participant's beneficiary.
33    (Source: P.A. 84-1472.)
 
HB3183 Engrossed            -30-     LRB093 07931 EFG 08122 b
 1        (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
 2        Sec. 15-154.  Refunds.
 3        (a)  A   participant  whose  status  as  an  employee  is
 4    terminated, regardless of cause, or who has been on  lay  off
 5    status  for  more  than  120 days, and who is not on leave of
 6    absence, is  entitled  to  a  refund  of  contributions  upon
 7    application;  except  that  not  more  than  one  such refund
 8    application may be made during any academic year.
 9        Except as set forth in subsections (a-1) and  (a-2),  the
10    refund   shall   be   the  sum  of  the  accumulated  normal,
11    additional, and survivors insurance contributions,  plus  the
12    entire  contribution  made  by  the participant under Section
13    15-113.3, less the  amount  of  interest  credited  on  these
14    contributions  each year in excess of 4 1/2% of the amount on
15    which interest was calculated.
16        (a-1)  A  person  who  elects,  in  accordance  with  the
17    requirements of  Section  15-134.5,  to  participate  in  the
18    portable  benefit  package  and  who  becomes a participating
19    employee under that retirement program upon the conclusion of
20    the  one-year  waiting  period  applicable  to  the  portable
21    benefit  package  election  shall  have  his  or  her  refund
22    calculated in accordance with the  provisions  of  subsection
23    (a-2).
24        (a-2)  The  refund  payable to a participant described in
25    subsection (a-1)  shall  be  the  sum  of  the  participant's
26    accumulated  normal  and additional contributions, as defined
27    in Sections 15-116 and 15-117, plus the  entire  contribution
28    made  by  the  participant  under  Section  15-113.3.  If the
29    participant terminates with 5 or more years  of  service  for
30    employment  as  defined  in Section 15-113.1, he or she shall
31    also be entitled to a distribution of employer  contributions
32    in  an  amount equal to the sum of the accumulated normal and
33    additional contributions, as defined in Sections  15-116  and
34    15-117.
 
HB3183 Engrossed            -31-     LRB093 07931 EFG 08122 b
 1        (b)  Upon   acceptance   of  a  refund,  the  participant
 2    forfeits all accrued rights and credits in the System, and if
 3    subsequently reemployed, the participant shall be  considered
 4    a  new  employee subject to all the qualifying conditions for
 5    participation and eligibility for benefits applicable to  new
 6    employees.   If  such  person  again  becomes a participating
 7    employee and continues as such for 2 years, or is employed by
 8    an employer and participates for at  least  2  years  in  the
 9    Federal  Civil  Service  Retirement  System, all such rights,
10    credits, and  previous  status  as  a  participant  shall  be
11    restored upon repayment of the amount of the refund, together
12    with  compound  interest thereon from the date the refund was
13    received to the date of repayment at the rate of 6% per annum
14    through August 31, 1982, and at  the  effective  rates  after
15    that  date.    When  a  participant  in  the portable benefit
16    package who received a refund which included  a  distribution
17    of  employer  contributions  repays a refund pursuant to this
18    Section, one-half of the amount repaid shall  be  deemed  the
19    member's   reinstated   accumulated   normal  and  additional
20    contributions and the other half shall  be  allocated  as  an
21    employer  contribution  to the System, except that any amount
22    repaid for previously purchased military service credit under
23    Section  15-113.3   shall   be   accounted   for   as   such.
24    Notwithstanding  Section  1-103.1 and the other provisions of
25    this Section, a person who was a participant  in  the  System
26    from  February  14,  1966  until  March  13, 1981 may restore
27    credits previously  forfeited  by  acceptance  of  a  refund,
28    without  returning  to  service,  by  applying in writing and
29    repaying to the System by July 1,  2002  the  amount  of  the
30    refund  plus  interest  at the effective rate calculated from
31    the date of the refund to the date of repayment.
32        (c)  If  a  participant  covered  under  the  traditional
33    benefit package has made survivors  insurance  contributions,
34    but  has  no survivors insurance beneficiary upon retirement,
 
HB3183 Engrossed            -32-     LRB093 07931 EFG 08122 b
 1    he or she  shall  be  entitled  to  elect  a  refund  of  the
 2    accumulated survivors insurance contributions, or to elect an
 3    additional  annuity  the  value  of  which  is  equal  to the
 4    accumulated survivors insurance contributions.  This election
 5    must be made  prior  to  the  date  the  person's  retirement
 6    annuity is approved by the System Board of Trustees.
 7        (d)  A  participant,  upon  application, is entitled to a
 8    refund of his or  her  accumulated  additional  contributions
 9    attributable to the additional contributions described in the
10    last  sentence  of subsection (c) of Section 15-157. Upon the
11    acceptance  of  such  a  refund  of  accumulated   additional
12    contributions,   the  participant  forfeits  all  rights  and
13    credits which may have accrued because of such contributions.
14        (e)  A participant who terminates  his  or  her  employee
15    status  and  elects  to  waive  service  credit under Section
16    15-154.2, is entitled to a refund of the accumulated  normal,
17    additional  and  survivors  insurance  contributions, if any,
18    which were credited the participant for this service,  or  to
19    an  additional  annuity  the  value  of which is equal to the
20    accumulated  normal,  additional  and   survivors   insurance
21    contributions,  if  any;  except  that not more than one such
22    refund application may be made during any academic year. Upon
23    acceptance of  this  refund,  the  participant  forfeits  all
24    rights and credits accrued because of this service.
25        (f)  If  a  police  officer  or  firefighter  receives  a
26    retirement annuity under Rule 1 or 3 of Section 15-136, he or
27    she  shall  be  entitled  at  retirement  to  a refund of the
28    difference   between   his   or   her   accumulated    normal
29    contributions  and  the normal contributions which would have
30    accumulated had such person filed a waiver of the  retirement
31    formula provided by Rule 4 of Section 15-136.
32        (g)  If,  at  the time of retirement, a participant would
33    be entitled to a retirement annuity under Rule 1, 2, 3, 4, or
34    5 of Section 15-136, or under Section 15-136.4,  that exceeds
 
HB3183 Engrossed            -33-     LRB093 07931 EFG 08122 b
 1    the maximum specified in clause  (1)  of  subsection  (c)  of
 2    Section  15-136,  he  or she shall be entitled to a refund of
 3    the employee contributions, if any, paid under Section 15-157
 4    after the date upon which continuance of  such  contributions
 5    would  have otherwise caused the retirement annuity to exceed
 6    this maximum, plus compound interest at the effective rates.
 7    (Source: P.A. 91-887  (Sections  10  and  25),  eff.  7-6-00;
 8    92-16, eff. 6-28-01; 92-424, eff. 8-17-01.)

 9        (40 ILCS 5/15-158.2)
10        Sec. 15-158.2. Self-managed plan.
11        (a)  Purpose.   The  General  Assembly  finds  that it is
12    important for colleges and universities to be able to attract
13    and retain the most qualified employees and that in order  to
14    attract and retain these employees, colleges and universities
15    should have the flexibility to provide a defined contribution
16    plan  as  an alternative for eligible employees who elect not
17    to  participate  in  a  defined  benefit  retirement  program
18    provided  under  this  Article.    Accordingly,   the   State
19    Universities   Retirement  System  is  hereby  authorized  to
20    establish and administer a  self-managed  plan,  which  shall
21    offer  participating  employees the opportunity to accumulate
22    assets for retirement through a combination of  employee  and
23    employer  contributions that may be invested in mutual funds,
24    collective investment funds, or other investment products and
25    used to purchase annuity contracts, either fixed or  variable
26    or  a  combination thereof.  The plan must be qualified under
27    the Internal Revenue Code of 1986.
28        (b)  Adoption by employers.   Each  employer  subject  to
29    this  Article  may  elect  to  adopt  the  self-managed  plan
30    established under this Section; this election is irrevocable.
31    An  employer's  election to adopt the self-managed plan makes
32    available to the eligible  employees  of  that  employer  the
33    elections described in Section 15-134.5.
 
HB3183 Engrossed            -34-     LRB093 07931 EFG 08122 b
 1        The  State  Universities  Retirement  System shall be the
 2    plan sponsor for the self-managed plan and  shall  prepare  a
 3    plan  document and prescribe such rules and procedures as are
 4    considered necessary or desirable for the  administration  of
 5    the self-managed plan.  Consistent with its fiduciary duty to
 6    the  participants and beneficiaries of the self-managed plan,
 7    the Board of Trustees of the System may delegate  aspects  of
 8    plan administration as it sees fit to companies authorized to
 9    do  business  in  this  State,  to  the  employers,  or  to a
10    combination of both.
11        (c)  Selection of service providers and funding vehicles.
12    The System, in consultation with the employers, shall solicit
13    proposals to  provide  administrative  services  and  funding
14    vehicles for the self-managed plan from insurance and annuity
15    companies  and mutual fund companies, banks, trust companies,
16    or other financial institutions authorized to do business  in
17    this   State.    In  reviewing  the  proposals  received  and
18    approving and contracting with no fewer than 2  and  no  more
19    than  7  companies, at least 2 of which must be insurance and
20    annuity companies, the Board of Trustees of the System  shall
21    consider, among other things, the following criteria:
22             (1)  the  nature  and  extent  of  the benefits that
23        would be provided to the participants;
24             (2)  the reasonableness of the benefits in  relation
25        to the premium charged;
26             (3)  the  suitability  of  the benefits to the needs
27        and interests of  the  participating  employees  and  the
28        employer;
29             (4)  the  ability of the company to provide benefits
30        under the contract and the  financial  stability  of  the
31        company; and
32             (5)  the efficacy of the contract in the recruitment
33        and retention of employees.
34        The  System,  in  consultation  with the employers, shall
 
HB3183 Engrossed            -35-     LRB093 07931 EFG 08122 b
 1    periodically review each approved  company.   A  company  may
 2    continue  to  provide  administrative  services  and  funding
 3    vehicles  for  the  self-managed  plan  only  so  long  as it
 4    continues to be an approved company under contract  with  the
 5    Board.
 6        (d)  Employee Direction.  Employees who are participating
 7    in  the  program  must  be  allowed to direct the transfer of
 8    their account balances among the various  investment  options
 9    offered,  subject  to applicable contractual provisions.  The
10    participant shall not be deemed  a  fiduciary  by  reason  of
11    providing  such  investment  direction.   A  person  who is a
12    fiduciary shall not be liable for  any  loss  resulting  from
13    such  investment  direction  and  shall not be deemed to have
14    breached any fiduciary duty by acting in accordance with that
15    direction.  Neither the System nor  the  employer  guarantees
16    any of the investments in the employee's account balances.
17        (e)  Participation.   An employee eligible to participate
18    in the self-managed plan must  make  a  written  election  in
19    accordance  with  the  provisions of Section 15-134.5 and the
20    procedures established by the System.  Participation  in  the
21    self-managed  plan by an electing employee shall begin on the
22    first day of the first pay period following the later of  the
23    date  the employee's election is filed with the System or the
24    effective date as of which the employee's employer begins  to
25    offer  participation in the self-managed plan.  Employers may
26    not make the self-managed plan available earlier than January
27    1, 1998.  An employee's participation in any other retirement
28    program administered by the System under this  Article  shall
29    terminate  on the date that participation in the self-managed
30    plan begins.
31        An  employee  who  has  elected  to  participate  in  the
32    self-managed  plan   under   this   Section   must   continue
33    participation while employed in an eligible position, and may
34    not  participate in any other retirement program administered
 
HB3183 Engrossed            -36-     LRB093 07931 EFG 08122 b
 1    by the System under  this  Article  while  employed  by  that
 2    employer   or   any  other  employer  that  has  adopted  the
 3    self-managed plan, unless the self-managed plan is terminated
 4    in accordance with subsection (i).
 5        Participation in the self-managed plan under this Section
 6    shall  constitute  membership  in  the   State   Universities
 7    Retirement System.
 8        A participant under this Section shall be entitled to the
 9    benefits of Article 20 of this Code.
10        (f)  Establishment of Initial Account Balance.  If at the
11    time  an  employee  elects to participate in the self-managed
12    plan he or she has rights and credits in the  System  due  to
13    previous  participation  in  the traditional benefit package,
14    the System  shall  establish  for  the  employee  an  opening
15    account balance in the self-managed plan, equal to the amount
16    of contribution refund that the employee would be eligible to
17    receive  under  Section  15-154  if  the  employee terminated
18    employment  on  that   date   and   elected   a   refund   of
19    contributions,  except  that  this  hypothetical refund shall
20    include interest at the effective  rate  for  the  respective
21    years.   The  System  shall  transfer assets from the defined
22    benefit retirement program to the self-managed plan, as a tax
23    free transfer in accordance  with  Internal  Revenue  Service
24    guidelines,  for  purposes  of funding the employee's opening
25    account balance.
26        (g)  No Duplication of Service  Credit.   Notwithstanding
27    any  other  provision  of  this  Article, an employee may not
28    purchase or receive service or service credit  applicable  to
29    any other retirement program administered by the System under
30    this  Article  for any period during which the employee was a
31    participant in the self-managed plan established  under  this
32    Section.
33        (h)  Contributions.    The  self-managed  plan  shall  be
34    funded by contributions from employees participating  in  the
 
HB3183 Engrossed            -37-     LRB093 07931 EFG 08122 b
 1    self-managed  plan  and employer contributions as provided in
 2    this Section.
 3        The contribution rate for employees participating in  the
 4    self-managed  plan  under  this Section shall be equal to the
 5    employee contribution rate  for  other  participants  in  the
 6    System,   as  provided  in  Section  15-157.   This  required
 7    contribution shall be made as  an  "employer  pick-up"  under
 8    Section  414(h)  of  the Internal Revenue Code of 1986 or any
 9    successor Section thereof.  Any employee participating in the
10    System's traditional benefit package  prior  to  his  or  her
11    election  to  participate  in  the  self-managed  plan  shall
12    continue  to  have  the  employer  pick  up the contributions
13    required under Section 15-157.  However, the  amounts  picked
14    up  after  the  election  of  the  self-managed plan shall be
15    remitted to and treated as assets of the  self-managed  plan.
16    In  no  event  shall  an employee have an option of receiving
17    these  amounts  in  cash.   Employees  may  make   additional
18    contributions  to  the  self-managed  plan in accordance with
19    procedures prescribed by the System, to the extent  permitted
20    under rules prescribed by the System.
21        The  program  shall provide for employer contributions to
22    be credited to each self-managed plan participant at  a  rate
23    of  7.6%  of  the  participating  employee's salary, less the
24    amount used by the System to provide disability benefits  for
25    the employee.  The amounts so credited shall be paid into the
26    participant's  self-managed  plan  accounts in a manner to be
27    prescribed by the System.
28        An amount of employer contribution, not exceeding  1%  of
29    the  participating  employee's  salary, shall be used for the
30    purpose of providing the disability benefits of the System to
31    the employee.  Prior to the beginning of each plan year under
32    the self-managed plan, the Board of Trustees shall determine,
33    as  a  percentage  of  salary,   the   amount   of   employer
34    contributions  to  be  allocated  during  that  plan year for
 
HB3183 Engrossed            -38-     LRB093 07931 EFG 08122 b
 1    providing  disability   benefits   for   employees   in   the
 2    self-managed plan.
 3        The   State  of  Illinois  shall  make  contributions  by
 4    appropriations to the System of  the  employer  contributions
 5    required  for  employees  who participate in the self-managed
 6    plan under this  Section.    The  amount  required  shall  be
 7    certified  by the Board of Trustees of the System and paid by
 8    the State in accordance  with  Section  15-165.   The  System
 9    shall  not  be  obligated  to  remit  the  required  employer
10    contributions  to any of the insurance and annuity companies,
11    mutual fund  companies,  banks,  trust  companies,  financial
12    institutions,  or  other  sponsors  of  any  of  the  funding
13    vehicles  offered  under  the  self-managed plan until it has
14    received the required employer contributions from the  State.
15    In  the  event  of  a  deficiency  in  the  amount  of  State
16    contributions,  the  System  shall implement those procedures
17    described in subsection (c) of Section 15-165 to  obtain  the
18    required funding from the General Revenue Fund.
19        (i)  Termination.  The self-managed plan authorized under
20    this  Section may be terminated by the System, subject to the
21    terms of any relevant contracts, and the System shall have no
22    obligation to reestablish the self-managed  plan  under  this
23    Section.   This  Section does not create a right to continued
24    participation in any self-managed plan set up by  the  System
25    under  this Section.  If the self-managed plan is terminated,
26    the participants shall have the right to participate  in  one
27    of  the  other  retirement programs offered by the System and
28    receive service credit in such other retirement  program  for
29    any years of employment following the termination.
30        (j)  Vesting;   Withdrawal;   Return   to   Service.    A
31    participant  in  the  self-managed plan becomes vested in the
32    employer contributions credited to his or her accounts in the
33    self-managed plan on the earliest to occur of the  following:
34    (1)  completion  of  5  years  of  service  with  an employer
 
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 1    described  in  Section  15-106;  (2)   the   death   of   the
 2    participating   employee   while   employed  by  an  employer
 3    described in Section 15-106, if the participant has completed
 4    at least 1 1/2 years of service;  or  (3)  the  participant's
 5    election  to  retire  and  apply the reciprocal provisions of
 6    Article 20 of this Code.
 7        A participant in the self-managed  plan  who  receives  a
 8    distribution   of   his   or  her  vested  amounts  from  the
 9    self-managed plan while not yet eligible for retirement under
10    this Article (and Article 20, if  applicable)  shall  forfeit
11    all  service  credit  and  accrued  rights  in the System; if
12    subsequently re-employed, the participant shall be considered
13    a new employee.  If a  former  participant  again  becomes  a
14    participating    employee   (or   becomes   employed   by   a
15    participating system under  Article  20  of  this  Code)  and
16    continues  as  such  for  at  least 2 years, all such rights,
17    service credits, and previous status as a  participant  shall
18    be restored upon repayment of the amount of the distribution,
19    without interest.
20        (k)  Benefit  amounts.   If  an employee who is vested in
21    employer contributions terminates  employment,  the  employee
22    shall  be entitled to a benefit which is based on the account
23    values   attributable   to   both   employer   and   employee
24    contributions and any investment return thereon.
25        If  an  employee  who   is   not   vested   in   employer
26    contributions  terminates  employment,  the employee shall be
27    entitled to a benefit based  solely  on  the  account  values
28    attributable   to   the   employee's  contributions  and  any
29    investment return thereon, and the employer contributions and
30    any  investment  return  thereon  shall  be  forfeited.   Any
31    employer contributions which are forfeited shall be  held  in
32    escrow by the company investing those contributions and shall
33    be  used  as directed by the System for future allocations of
34    employer contributions or  for  the  restoration  of  amounts
 
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 1    previously  forfeited by former participants who again become
 2    participating employees.
 3    (Source: P.A. 90-448, eff.  8-16-97;  90-576,  eff.  3-31-98;
 4    90-766, eff. 8-14-98; 91-887, eff. 7-6-00.)

 5        (40 ILCS 5/15-186.1) (from Ch. 108 1/2, par. 15-186.1)
 6        Sec.  15-186.1.   Mistake  in  benefit.   If  the  System
 7    mistakenly  sets any benefit at an incorrect amount, it shall
 8    recalculate the benefit as soon as may be  practicable  after
 9    the mistake is discovered.
10        If  the  benefit  was  mistakenly set too low, the System
11    shall make a lump sum payment to the recipient of  an  amount
12    equal to the difference between the benefits that should have
13    been  paid  and  those  actually  paid,  plus interest at the
14    effective rate from the date the unpaid  amounts  accrued  to
15    the date of payment.
16        If  the  benefit  was mistakenly set too high, the System
17    may recover the amount overpaid from the  recipient  thereof,
18    plus  interest  at  the  effective  rate  from  the  date  of
19    overpayment  to  the  date of recovery, either directly or by
20    deducting such amount from the remaining benefits payable  to
21    the recipient.  However, if (1) the amount of the benefit was
22    mistakenly  set  too high, and (2) the error was undiscovered
23    for 3 years or longer, and (3) the error was not  the  result
24    of  incorrect  information supplied by the affected member or
25    beneficiary, then upon discovery of the mistake  the  benefit
26    shall  be adjusted to the correct level, but the recipient of
27    the benefit need not repay to the System the  excess  amounts
28    received in error.
29    (Source: P.A. 85-1008.)

30        (40 ILCS 5/15-187) (from Ch. 108 1/2, par. 15-187)
31        Sec.  15-187.  Felony  conviction.   None of the benefits
32    provided under this Article shall be paid to any  person  who
 
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 1    is  convicted  of any felony relating to or arising out of or
 2    in connection with the person's service as an employee.
 3        This Section shall not operate to impair any contract  or
 4    vested  right  heretofore  acquired  under  any  law  or laws
 5    continued in this Article, nor to preclude  the  right  to  a
 6    refund.    No refund paid to any person who is convicted of a
 7    felony relating to or arising out of or  in  connection  with
 8    the  person's  service  as an employee shall include employer
 9    contributions or interest or, in the case of the self-managed
10    plan  authorized  under  Section   15-158.2,   any   employer
11    contributions   or   investment   return   on  such  employer
12    contributions.
13        All persons entering service subsequent to July  9,  1955
14    shall  be  deemed to have consented to the provisions of this
15    Section as a condition of coverage.
16    (Source: P.A. 83-1440.)

17        (40 ILCS 5/15-190) (from Ch. 108 1/2, par. 15-190)
18        Sec. 15-190. Persons under legal disability.  If a person
19    is under legal disability when any right or privilege accrues
20    to him or her under this Article, a guardian may be appointed
21    pursuant to law, and may, on behalf of such person, claim and
22    exercise any such right or privilege with the same force  and
23    effect as if the person had not been under a legal disability
24    and had claimed or exercised such right or privilege.
25        If  a  person's application for benefits or a physician's
26    certificate on file with the board shows that the  person  is
27    under  a legal disability, and no guardian has been appointed
28    for his or  her  estate,  the  benefits  payable  under  this
29    Article  may  be  paid (1) directly to the person under legal
30    disability, (2) to any person who has legally  qualified  and
31    is  acting  as  guardian  of the property of the person under
32    legal disability, (3) to either parent of  the  person  under
33    legal  disability  or  any  adult person with whom the person
 
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 1    under legal disability may at the time  be  living,  provided
 2    only  that  such parent or adult person to whom any amount is
 3    to be paid shall have advised the board in writing that  such
 4    amount  will  be  held  or used for the benefit of the person
 5    under legal disability, or (4) (3)  to  the  trustee  of  any
 6    trust  created for the sole benefit of the person under legal
 7    disability while that person is living,  provided  only  that
 8    the  trustee  of  such trust to whom any amount is to be paid
 9    shall have advised the board in writing that such amount will
10    be held or used for the benefit of  the  person  under  legal
11    disability.   The  system  shall not be required to determine
12    the validity of the trust or any of the terms  thereof.   The
13    representation  of  the  trustee  that  the  trust  meets the
14    requirements of this Section shall be conclusive  as  to  the
15    system.   The  written  receipt  of  the  person  under legal
16    disability or the other  person  who  receives  such  payment
17    shall  be  an absolute discharge of the system's liability in
18    respect of the amount so paid.
19    (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)

20        Section 99.  Effective date.  This Act takes effect  upon
21    becoming law.