093_SB0820enr

 
SB820 Enrolled                       LRB093 11011 EFG 11672 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  16-113,  16-129.1,  16-133.2,  16-149.2,
 6    16-150, 16-151,  16-182,  16-184,  16-185,  and  16-186.3  as
 7    follows:

 8        (40 ILCS 5/16-113) (from Ch. 108 1/2, par. 16-113)
 9        Sec.  16-113.   Accumulated  contributions.  "Accumulated
10    contributions": The sum of all contributions to  this  System
11    made  by  or  on  behalf of a member in respect to membership
12    service and credited to his or her  account  in  the  Benefit
13    Trust  Reserve  Members'  Contribution Reserve, together with
14    regular interest thereon.
15    (Source: P.A. 83-1440.)

16        (40 ILCS 5/16-129.1)
17        Sec. 16-129.1.  Optional increase in retirement annuity.
18        (a)  A member of the System may qualify for the augmented
19    rate under subdivision (a)(B)(1) of Section  16-133  for  all
20    years  of  creditable  service  earned before July 1, 1998 by
21    making the optional contribution specified in subsection (b).
22    A member may not elect to qualify for the augmented rate  for
23    only a portion of his or her creditable service earned before
24    July 1, 1998.
25        (b)  The contribution shall be an amount equal to 1.0% of
26    the  member's highest salary rate in the 4 consecutive school
27    years immediately prior to but not including the school  year
28    in  which the application occurs, multiplied by the number of
29    years of creditable service earned by the member before  July
30    1, 1998 or 20, whichever is less.  This contribution shall be
 
SB820 Enrolled             -2-       LRB093 11011 EFG 11672 b
 1    reduced by 1.0% of that salary rate for every 3 full years of
 2    creditable  service earned by the member after June 30, 1998.
 3    The contribution shall be further reduced at the rate of  25%
 4    of  the  contribution  (as reduced for service after June 30,
 5    1998) for each year of the member's total creditable  service
 6    in  excess  of  34  years.  The contribution shall not in any
 7    event exceed 20% of that salary rate.
 8        The member shall pay to the  System  the  amount  of  the
 9    contribution  as  calculated at the time of application under
10    this Section.  The  amount  of  the  contribution  determined
11    under  this  subsection  shall be recalculated at the time of
12    retirement, and if the System determines that the amount paid
13    by the member exceeds the  recalculated  amount,  the  System
14    shall  refund  the  difference  to  the  member  with regular
15    interest from the date of payment to the date of refund.
16        The contribution required by  this  subsection  shall  be
17    paid  in one of the following ways or in a combination of the
18    following ways that does not extend over more than 5 years:
19             (i)  in  a  lump  sum  on  or  before  the  date  of
20        retirement;
21             (ii)  in substantially  equal  installments  over  a
22        period of time not to exceed 5 years, as a deduction from
23        salary  in  accordance  with  subsection  (b)  of Section
24        16-154;
25             (iii)  if the member  becomes  an  annuitant  before
26        June   30,   2003,   in   substantially   equal   monthly
27        installments  over  a  24-month  period,  by reducing the
28        annuitant's monthly benefit over a 24-month period by the
29        amount of the  otherwise  applicable  contribution.   For
30        federal  and Illinois tax purposes, the monthly amount by
31        which the annuitant's benefit is  reduced  shall  not  be
32        treated as a contribution by the annuitant, but rather as
33        a reduction of the annuitant's monthly benefit.
34        (c)  If  the  member  fails to make the full contribution
 
SB820 Enrolled             -3-       LRB093 11011 EFG 11672 b
 1    under this Section in a timely  fashion,  the  payments  made
 2    under  this  Section shall be refunded to the member, without
 3    interest.   If  the  member  dies  before  making  the   full
 4    contribution,  the payments made under this Section, together
 5    with regular interest  thereon,  shall  be  refunded  to  the
 6    member's  designated  beneficiary  for benefits under Section
 7    16-138.
 8        (d)  For  purposes  of  this  Section   and   subdivision
 9    (a)(B)(1)  of  Section  16-133,  optional  creditable service
10    established by a member shall be deemed to have  been  earned
11    at  the time of the employment or other qualifying event upon
12    which the service is based,  rather  than  at  the  time  the
13    credit was established in this System.
14        (e)  The  contributions  required  under this Section are
15    the responsibility of  the  teacher  and  not  the  teacher's
16    employer.   However,  an  employer of teachers may, after the
17    effective date of this amendatory Act of  1998,  specifically
18    agree,  through  collective  bargaining or otherwise, to make
19    the contributions required by this Section on behalf of those
20    teachers.
21        (f)  A person who, on or after July 1,  1998  and  before
22    June 4, 1999, began receiving a retirement annuity calculated
23    at  the  augmented  rate  may  apply  in  writing to have the
24    annuity recalculated to reflect the changes to  this  Section
25    and  Section  16-133  that  were enacted in Public Act 91-17.
26    The  amount  of  any  resulting  decrease  in  the   optional
27    contribution  shall  be  refunded  to  the annuitant, without
28    interest.  Any resulting increase in retirement annuity shall
29    take effect on the next annuity payment  date  following  the
30    date of application under this subsection.
31    (Source: P.A. 91-17, eff. 6-4-99; 92-416, eff. 8-17-01.)

32        (40 ILCS 5/16-133.2) (from Ch. 108 1/2, par. 16-133.2)
33        Sec.  16-133.2.  Early  retirement  without  discount.  A
 
SB820 Enrolled             -4-       LRB093 11011 EFG 11672 b
 1    member retiring after June 1, 1980 and on or before June  30,
 2    2005,  and  applying for a retirement annuity within 6 months
 3    of  the  last  day   of   teaching   for   which   retirement
 4    contributions  were  required,  may  elect  at  the  time  of
 5    application  for  a  retirement  annuity,  to make a one time
 6    member contribution to  the  System  and  thereby  avoid  the
 7    reduction in the retirement annuity for retirement before age
 8    60  specified  in  paragraph  (B)  of  Section  16-133.   The
 9    exercise  of  the  election  shall  also  obligate  the  last
10    employer  to  make  a one time non-refundable contribution to
11    the System.  Substitute teachers  wishing  to  exercise  this
12    election  must  teach 85 or more days in one school term with
13    one employer, who shall  be  deemed  the  last  employer  for
14    purposes of this Section.  The last day of teaching with that
15    employer  must  be within 6 months of the date of application
16    for  retirement.   All  substitute  teaching  credit  applied
17    toward the required 85 days must be  earned  after  June  30,
18    1990.
19        The one time member and employer contributions shall be a
20    percentage  of  the  retiring  member's highest annual salary
21    rate used in the determination  of  the  average  salary  for
22    retirement  annuity  purposes.  However, when determining the
23    one-time member and employer contributions, that  part  of  a
24    member's  salary  with  the  same  employer which exceeds the
25    annual salary rate for the preceding year by  more  than  20%
26    shall  be  excluded.  The member contribution shall be at the
27    rate of 7% for the lesser of the following  2  periods:   (1)
28    for each year that the member is less than age 60; or (2) for
29    each  year  that the member's creditable service is less than
30    35 years.  If a member is at least age 55 and has at least 34
31    years  of  creditable  service,   no   member   or   employer
32    contribution   for  the  early  retirement  option  shall  be
33    required.  The employer contribution shall be at the rate  of
34    20% for each year the member is under age 60.
 
SB820 Enrolled             -5-       LRB093 11011 EFG 11672 b
 1        Upon  receipt of the application and election, the System
 2    shall  determine  the  one   time   employee   and   employer
 3    contributions  required.   The  member  contribution shall be
 4    credited to the individual account  of  the  member  and  the
 5    employer  contribution shall be credited to the Benefit Trust
 6    Reserve Employer's Contribution Reserve.  The  provisions  of
 7    this  Section  shall  not  be  applicable  until the member's
 8    contribution, if  any,  has  been  received  by  the  System;
 9    however,  the  date such contributions are received shall not
10    be  considered  in  determining   the   effective   date   of
11    retirement.
12        The  number  of members working for a single employer who
13    may retire under this Section in any year may be  limited  at
14    the option of the employer to a specified percentage of those
15    eligible, not less than 30%, with the right to participate to
16    be  allocated  among those applying on the basis of seniority
17    in the service of the employer.
18    (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99.)

19        (40 ILCS 5/16-149.2) (from Ch. 108 1/2, par. 16-149.2)
20        Sec. 16-149.2.  Disability retirement annuity.
21        (a)  A  member  whose   disability   benefit   has   been
22    terminated  under  the  provisions  of  Section 16-149 may be
23    retired on a disability retirement annuity payable  effective
24    the  day  following  such  termination  provided  the  member
25    remains disabled under the standard of disability provided in
26    Section 16-149.
27        The  disability  retirement annuity shall be payable upon
28    receipt of written certificates  from  at  least  2  licensed
29    physicians   designated   by   the   System   verifying   the
30    continuation   of  the  disability  condition.  A  disability
31    retirement annuity shall not be paid during  any  period  for
32    which  the  member  receives  benefits  under Section 16-133,
33    Section 16-149, or Section 16-149.1 or has a right to receive
 
SB820 Enrolled             -6-       LRB093 11011 EFG 11672 b
 1    a salary as a teacher, or is employed in any  capacity  as  a
 2    teacher  by the employers included under this System or in an
 3    equivalent capacity in any other public  or  private  school,
 4    college or university.
 5        (b)  The  disability retirement annuity shall be equal to
 6    the larger of:  (1) 35% of the most  recent  annual  contract
 7    salary  rate  or  for  part-time and substitute members after
 8    June 30, 1990, the most recent annualized salary rate; or (2)
 9    if disability commences prior to the member's  attainment  of
10    age  55,  the  amount  computed  in  accordance  with Section
11    16-133, provided the amount computed under paragraph  (B)  of
12    Section  16-133  shall be reduced by 1/2 of 1% for each month
13    that the member is less than age 55;  or  (3)  if  disability
14    commences  after  the  member's attainment of age 55, and the
15    member is not receiving a retirement  annuity  under  Section
16    16-133,  the  amount  computed  in  accordance  with  Section
17    16-133.
18        Prior  to  July  1,  1990,  if  the most recent period of
19    service of  any  member  eligible  to  receive  a  disability
20    retirement  annuity was rendered on a less than full-time but
21    not less than half-time basis, the amount of  the  disability
22    retirement  annuity payable shall be computed on the basis of
23    the salary received by such member for the member's last year
24    of service on a full-time basis if such  salary  was  greater
25    than the member's most recent salary.
26        (c)  If  an  annuitant  receiving a disability retirement
27    annuity under this Section is engaged in or able to engage in
28    gainful employment paying more than  the  difference  between
29    the  disability  retirement  annuity and the salary rate upon
30    which the disability benefit is based, with no salary  to  be
31    considered  less  than the minimum prescribed in Section 24-8
32    of the School Code, the disability retirement  annuity  shall
33    be reduced to an amount which together with the amount earned
34    by  the  annuitant,  equals  the  salary  rate upon which the
 
SB820 Enrolled             -7-       LRB093 11011 EFG 11672 b
 1    disability benefit is based.  However, for  the  purposes  of
 2    this  subsection  (c)  only,  the  salary rate upon which the
 3    benefit is based shall be deemed to increase by  15%  on  the
 4    tenth anniversary of the commencement of the annuity.
 5        Once  each  year  during  the  first  5  years  following
 6    retirement  on  a  disability retirement annuity, and once in
 7    every 3-year period thereafter, the  System  may  require  an
 8    annuitant to undergo a medical examination, by a physician or
 9    physicians  designated  by  the  System.   If  the  annuitant
10    refuses  to  submit  to such medical examination, the annuity
11    shall be  discontinued  until  such  time  as  the  annuitant
12    consents to the examination, and if refusal continues for one
13    year, all the rights to the annuity shall be revoked.
14        (d)  If   an   annuitant   in  receipt  of  a  disability
15    retirement annuity returns to active service as a teacher  or
16    is  no  longer  disabled,  such  annuity  shall cease and the
17    annuitant shall again  become  a  member  of  the  Retirement
18    System  and,  if  in  active service as a teacher, shall make
19    regular   contributions.      The    remaining    accumulated
20    contributions   shall   be   transferred   to   the  Members'
21    Contribution  Reserve  from   the   Employer's   Contribution
22    Reserve.   All  service for which the annuitant had credit on
23    the date of disability shall be properly reestablished.
24        An  annuitant  in  receipt  of  a  disability  retirement
25    annuity who returns to active service as a  teacher  and  who
26    again   becomes   disabled   shall   not  be  entitled  to  a
27    recomputation of the disability retirement annuity  based  on
28    amendments  enacted while the annuitant was in receipt of the
29    annuity unless at least one year  of  creditable  service  is
30    rendered after the latest re-entry into service.
31        (e)  An  annuitant  in receipt of a disability retirement
32    annuity may, upon reaching retirement  age  as  specified  in
33    Section 16-132, apply for a retirement annuity which is to be
34    calculated  as  specified  in Section 16-133.  The disability
 
SB820 Enrolled             -8-       LRB093 11011 EFG 11672 b
 1    retirement annuity shall be discontinued upon commencement of
 2    the retirement annuity.
 3        (f)  The  board  shall  prescribe  rules  governing   the
 4    filing, investigation, control, and supervision of disability
 5    retirement   claims.    The   rules  shall  include  specific
 6    standards to  be  used  when  requesting  additional  medical
 7    examinations,  hospital  records  or other data necessary for
 8    determining the employment  capacity  and  condition  of  the
 9    annuitant.   Costs  incurred by a claimant in connection with
10    completing a claim for disability benefits shall be  paid  by
11    the claimant.
12        The  changes  to this Section made by this amendatory Act
13    of 1991 shall apply not only to persons who on or  after  its
14    effective  date are in service as a teacher under the System,
15    but also to persons whose  status  as  a  teacher  terminated
16    prior to that date, whether or not the person is an annuitant
17    on that date.
18    (Source: P.A. 86-273; 86-1488; 87-794.)

19        (40 ILCS 5/16-150) (from Ch. 108 1/2, par. 16-150)
20        Sec.  16-150.   Re-entry.   If  an  annuitant  under this
21    System is again employed as a teacher for an aggregate period
22    exceeding that  permitted  by  Section  16-118,  his  or  her
23    retirement  annuity  shall  be  terminated  and the annuitant
24    shall  thereupon  be  regarded  as  an  active  member.   The
25    annuitant's  remaining  accumulated  contributions  shall  be
26    transferred to the Members'  Contribution  Reserve  from  the
27    Employer's Contribution Reserve.
28        Such  annuitant is not entitled to a recomputation of his
29    or her retirement annuity unless at least one  full  year  of
30    creditable service is rendered after the latest re-entry into
31    service and the annuitant must have rendered at least 3 years
32    of  creditable  service  after  last re-entry into service to
33    qualify for a recomputation of the retirement  annuity  based
 
SB820 Enrolled             -9-       LRB093 11011 EFG 11672 b
 1    on  amendments  enacted  while  in  receipt  of  a retirement
 2    annuity, except when retirement was due to disability.
 3        However, regardless of age, an annuitant in receipt of  a
 4    retirement  annuity  may  be  given temporary employment by a
 5    school board  not  exceeding  that  permitted  under  Section
 6    16-118 and continue to receive the retirement annuity.
 7        Unless  retirement  was  necessitated  by  disability,  a
 8    retirement  shall  be considered cancelled and the retirement
 9    allowance must be repaid in full if the annuitant is employed
10    as a teacher within the school year during which service  was
11    terminated.
12        An annuitant's retirement which does not include a period
13    of  at  least  one  full  and  complete  school year shall be
14    considered cancelled  and  the  retirement  annuity  must  be
15    repaid  in  full  unless  such retirement was necessitated by
16    disability.
17    (Source: P.A. 86-273; 87-794.)

18        (40 ILCS 5/16-151) (from Ch. 108 1/2, par. 16-151)
19        Sec. 16-151. Refund.  Upon termination of employment as a
20    teacher for any cause  other  than  death  or  retirement,  a
21    member shall be paid the following amount upon demand made at
22    least 4 months after ceasing to teach:
23             (1)  from   the   Benefit   Trust  Reserve  Members'
24        Contribution Reserve, the actual total contributions paid
25        by or on behalf of  the  member  for  membership  service
26        which  have  not  been  previously refunded and which are
27        then credited to the member's individual account  in  the
28        Benefit  Trust  Reserve  Members'  Contribution  Reserve,
29        without interest thereon, and
30             (2)  from   the  Benefit  Trust  Reserve  Employer's
31        Contribution  Reserve,  the  actual   contributions   not
32        previously  refunded,  paid by or on behalf of the member
33        for prior service and towards the cost of  the  automatic
 
SB820 Enrolled             -10-      LRB093 11011 EFG 11672 b
 1        annual  increase  in retirement annuity as provided under
 2        Section 16-152, without interest thereon.
 3        Any such amounts may be paid to the member either in  one
 4    sum  or,  at  the  election  of  the  board,  in  4 quarterly
 5    payments.
 6        Contributions  credited  to  a  member  for  periods   of
 7    disability  as  provided  in Sections 16-149 and 16-149.1 are
 8    not refundable.
 9        Upon acceptance of  a  refund,  all  accrued  rights  and
10    credits  in  the  System  are forfeited and may be reinstated
11    only if the refund is repaid together with interest from  the
12    date  of the refund to the date of repayment at the following
13    rates compounded annually:  for  periods  prior  to  July  1,
14    1965, regular interest; for periods from July 1, 1965 to June
15    30, 1977, 4% per year; for periods on and after July 1, 1977,
16    regular interest. Repayment shall be permitted upon return to
17    membership; however, service credit previously forfeited by a
18    refund and subsequently reinstated may not be used as a basis
19    for   the  payment  of  benefits,  other  than  a  refund  of
20    contributions,  prior  to  the  completion  of  one  year  of
21    creditable  service  following  the   refund,   except   when
22    repayment   is   permitted   under   the  provisions  of  the
23    "Retirement Systems Reciprocal Act" contained in Article 20.
24    (Source: P.A. 90-448, eff. 8-16-97.)

25        (40 ILCS 5/16-182) (from Ch. 108 1/2, par. 16-182)
26        Sec. 16-182.  Members' Contribution Reserve.
27        (a)  On July 1, 2003, the Members'  Contribution  Reserve
28    is  abolished  and the remaining balance shall be transferred
29    from that Reserve to the Benefit Trust Reserve.   A  Members'
30    Contribution  Reserve shall be established for the purpose of
31    accumulating  with  regular  interest  the  contributions  of
32    members made prior to retirement.
33        This Reserve shall be credited with:
 
SB820 Enrolled             -11-      LRB093 11011 EFG 11672 b
 1             (1)  The   total   accumulated   contributions   for
 2        membership service,  as  of  the  date  this  reserve  is
 3        established,   exclusive   of  contributions  for  annual
 4        increases in retirement annuity and survivor benefits.
 5             (2)  The member contributions received under Section
 6        16-133.2.
 7             (3)  The normal contributions under  Section  16-128
 8        and Section 16-131.2 together with regular interest.
 9             (4)  The  total of all normal contributions for each
10        fiscal year as of the end of the fiscal year.
11             (5)  The excess of the accumulated contributions  of
12        an  annuitant  at  retirement over the retirement annuity
13        payments received, to  be  computed  upon  re-entry  into
14        service  after  termination  of  a  retirement annuity as
15        provided in Section 16-150, or  after  termination  of  a
16        disability  retirement  annuity  as  provided  in Section
17        16-149.2.
18             (6)  Regular    interest    on    the    accumulated
19        contributions in the members' contribution reserve as  of
20        the end of the previous fiscal year, credited to the date
21        of retirement or death for those retiring or dying during
22        the  fiscal  year,  and to the end of the fiscal year for
23        all other members.
24        (b)  This Reserve shall be charged with:
25             (1)  The  accumulated   contributions   of   members
26        retired under the provisions of Sections 16-133, 16-136.4
27        and 16-149.2.
28             (2)  The   accumulated   contributions   of  members
29        granted a refund under the provisions of Section 16-151.
30             (3)  The  accumulated  contributions   of   deceased
31        members  upon  payment of a refund as provided in Section
32        16-138.
33             (4)  The  accumulated  contributions  together  with
34        regular interest as provided in Section 16-131.1.
 
SB820 Enrolled             -12-      LRB093 11011 EFG 11672 b
 1        (c)  Upon the granting of a  retirement  annuity  or  the
 2    payment  of  a  single-sum  retirement  benefit or a death or
 3    refund benefit, all individual  accumulated  credits  of  the
 4    member concerned shall be terminated.
 5        (d)  Amounts  credited  to  the account of a member under
 6    this Reserve shall  not  be  used  until  such  member  dies,
 7    retires,   accepts  a  refund,  or  requests  a  transfer  of
 8    contributions.
 9    (Source: P.A. 87-11.)

10        (40 ILCS 5/16-184) (from Ch. 108 1/2, par. 16-184)
11        Sec. 16-184.  Supplementary Annuity Reserve.
12        (a)  Except as provided in subsection (b), a  Reserve  to
13    be  known as the Supplementary Annuity Reserve is established
14    for the purpose of  crediting  funds  received  and  charging
15    disbursements  made for supplementary annuities under Section
16    16-135 and Section 16-149.4.
17        This Reserve shall be credited with:
18             (1)  The  total  of  all   contributions   made   by
19        annuitants to qualify for supplementary annuities.
20             (2)  Amounts  contributed to the System by the State
21        of Illinois that are sufficient to assure payment of  the
22        supplementary annuities.
23             (3)  Regular   interest  computed  annually  on  the
24        average balance in this reserve.
25        This Reserve  shall  be  charged  with  all  supplemental
26    annuity payments under Section 16-135 and Section 16-149.4.
27        (b)  On  the  July  1,  2003  next  occurring  after  the
28    effective  date  of  this  amendatory Act of the 91st General
29    Assembly, the Supplemental Annuity Reserve is  abolished  and
30    any  remaining balance shall be transferred from that Reserve
31    to the Benefit Trust Reserve Employer's Contribution Reserve.
32    (Source: P.A. 91-887, eff. 7-6-00.)
 
SB820 Enrolled             -13-      LRB093 11011 EFG 11672 b
 1        (40 ILCS 5/16-185) (from Ch. 108 1/2, par. 16-185)
 2        Sec.  16-185.   Benefit  Trust  Employer's   Contribution
 3    Reserve.
 4        (a)  On July 1, 2003, the Employer's Contribution Reserve
 5    shall  be  renamed  the  Benefit  Trust Reserve.  The Benefit
 6    Trust Reserve shall serve as a clearing  account  for  income
 7    and  expenses  of the System as well as transfers to and from
 8    the other reserve accounts established under this Article and
 9    adjustments thereto.
10        (b)  This   Reserve   shall   be   credited   with    all
11    contributions,  investment  income, and other income received
12    by the System, except as otherwise required by this Article.:
13             (1)  All amounts contributed by  the  State,  except
14        those  credited  to other reserve accounts as provided in
15        this Article.
16             (2)  The total  member  and  employer  contributions
17        except those required by other reserve accounts.
18             (3)  The  total  income  from invested assets of the
19        System, and other miscellaneous income.
20             (4)  The  interest  portion   of   the   accumulated
21        contributions of members granted refunds.
22             (5)  Contributions made by annuitants to qualify for
23        automatic  annual  increases  in  annuity,  except  those
24        required by other reserve accounts.
25        (c)  This  Reserve shall be charged with all benefits and
26    refunds paid and all other expenses of the System, except  as
27    otherwise required under this Article.:
28             (1)  All  amounts necessary to be transferred to the
29        Members' Contribution Reserve.
30             (2)  All retirement annuity,  single-sum  retirement
31        benefit   and  disability  retirement  annuity  payments,
32        including automatic annual increases in annuities, except
33        as provided by other reserve accounts.
34             (3)  All  amounts  necessary  to  be   refunded   to
 
SB820 Enrolled             -14-      LRB093 11011 EFG 11672 b
 1        withdrawing  members  except  as provided by the Members'
 2        Contribution Reserve.
 3             (4)  All   benefits   paid   to    temporarily    or
 4        accidentally  disabled  members  of  this System, and all
 5        amounts credited to the accounts of such disabled members
 6        in lieu of contributions.
 7             (5)  All amounts payable as death benefits except as
 8        provided by the Members' Contribution Reserve.
 9             (6)  All amounts necessary for the payment of  costs
10        for  the  health insurance program as provided under this
11        Article.
12             (7)  All survivor benefit contributions refunded  to
13        an annuitant as provided under Section 16-143.2.
14             (8)  All  amounts  paid  in  accordance with Section
15        16-131.1 except as provided by the Members'  Contribution
16        Reserve.
17             (9)  Interest   to  be  credited  to  other  reserve
18        accounts as specified in this Article.
19             (10)  Recognition of unrealized gains or  losses  in
20        market   value,   upon  adoption  of  generally  accepted
21        accounting principles that allow for such recognition.
22    (Source: P.A. 89-235, eff. 8-4-95; 90-448, eff. 8-16-97.)

23        (40 ILCS 5/16-186.3) (from Ch. 108 1/2, par. 16-186.3)
24        Sec. 16-186.3.  Reserve for minimum retirement annuity.
25        (a)  A Minimum Retirement Annuity Reserve is  established
26    for  the  purpose  of  crediting  funds received and charging
27    disbursements for minimum retirement annuity  payments  under
28    Section 16-136.2 and Section 16-136.3.
29        This Reserve shall be credited with:
30             (1)  The   total   of   all  contributions  made  by
31        annuitants to qualify for the minimum retirement annuity.
32             (2)  Amounts contributed to the System by the  State
33        of  Illinois that are sufficient to assure payment of the
 
SB820 Enrolled             -15-      LRB093 11011 EFG 11672 b
 1        minimum  retirement  annuity   payments   under   Section
 2        16-136.2 and Section 16-136.3.
 3             (3)  Regular   interest  computed  annually  on  the
 4        average balance in this Reserve.
 5        This Reserve shall be charged with all minimum retirement
 6    annuity payments under Section 16-136.2 and Section 16-136.3.
 7        (b)  After all minimum retirement annuity  payments  have
 8    been completed, any remaining funds shall be transferred from
 9    this   Reserve   to  the  Benefit  Trust  Reserve  Employer's
10    Contribution Reserve.
11    (Source: P.A. 88-593, eff. 8-22-94.)

12        Section 99. Effective date.  This Act takes  effect  upon
13    becoming law.