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Full Text of HB4622  97th General Assembly

HB4622enr 97TH GENERAL ASSEMBLY

  
  
  

 


 
HB4622 EnrolledLRB097 16031 JDS 61183 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 7-170, 7-171, 7-172, 7-172.2, 7-173, 7-220, 15-113,
615-135, 15-136, 15-136.4, 15-139, and 15-153.2 as follows:
 
7    (40 ILCS 5/7-170)  (from Ch. 108 1/2, par. 7-170)
8    Sec. 7-170. Federal Social Security coverage.
9    (a) It is declared to be the policy and purpose to extend
10to covered employees as defined in Section 7-138, the benefits
11of the Federal Old Age and Survivors Insurance System as
12authorized by the Federal Social Security Act and amendments
13thereto. To effect this, the board shall take such action as
14may be required by applicable State and Federal laws or
15regulations.
16    (b) The board shall execute an agreement with the State
17Agency to secure coverage of covered employees as provided in
18paragraph (a) of this section.
19    (c) Each participating municipality and each participating
20instrumentality shall remit payment of contributions for
21Social Security purposes on behalf of covered employees and
22covered municipalities and participating instrumentalities as
23required by applicable State and federal laws and regulations.

 

 

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1    (d) Contributions of covered employees to this fund for
2Federal Social Security purposes shall be paid in such amounts
3and at such time as required by applicable State and federal
4laws and regulations.
5    (e) (Blank).
6    (f) The board shall maintain such records and submit such
7reports as may be required by applicable State and Federal laws
8or regulations.
9(Source: P.A. 96-1084, eff. 7-16-10.)
 
10    (40 ILCS 5/7-171)  (from Ch. 108 1/2, par. 7-171)
11    Sec. 7-171. Finance; taxes.
12    (a) Each municipality other than a school district shall
13appropriate an amount sufficient to provide for the current
14municipality contributions required by Section 7-172 of this
15Article, for the fiscal year for which the appropriation is
16made and all amounts due for municipal contributions for
17previous years. Those municipalities which have been assessed
18an annual amount to amortize its unfunded obligation, as
19provided in subparagraph 4 of paragraph (a) of Section 7-172 of
20this Article, shall include in the appropriation an amount
21sufficient to pay the amount assessed. The appropriation shall
22be based upon an estimate of assets available for municipality
23contributions and liabilities therefor for the fiscal year for
24which appropriations are to be made, including funds available
25from levies for this purpose in prior years.

 

 

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1    (b) For the purpose of providing monies for municipality
2contributions, beginning for the year in which a municipality
3is included in this fund:
4        (1) A municipality other than a school district may
5    levy a tax which shall not exceed the amount appropriated
6    for municipality contributions.
7        (2) A school district may levy a tax in an amount
8    reasonably calculated at the time of the levy to provide
9    for the municipality contributions required under Section
10    7-172 of this Article for the fiscal years for which
11    revenues from the levy will be received and all amounts due
12    for municipal contributions for previous years. Any levy
13    adopted before the effective date of this amendatory Act of
14    1995 by a school district shall be considered valid and
15    authorized to the extent that the amount was reasonably
16    calculated at the time of the levy to provide for the
17    municipality contributions required under Section 7-172
18    for the fiscal years for which revenues from the levy will
19    be received and all amounts due for municipal contributions
20    for previous years. In no event shall a budget adopted by a
21    school district limit a levy of that school district
22    adopted under this Section.
23    (c) Any county which is served by a regional office of
24education that serves 2 or more counties may include in its
25appropriation an amount sufficient to provide its
26proportionate share of the municipality contributions for that

 

 

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1regional office of education. The tax levy authorized by this
2Section may include an amount necessary to provide monies for
3this contribution.
4    (d) Any county that is a part of a multiple-county health
5department or consolidated health department which is formed
6under "An Act in relation to the establishment and maintenance
7of county and multiple-county public health departments",
8approved July 9, 1943, as amended, and which is a participating
9instrumentality may include in the county's appropriation an
10amount sufficient to provide its proportionate share of
11municipality contributions of the department. The tax levy
12authorized by this Section may include the amount necessary to
13provide monies for this contribution.
14    (d-5) A school district participating in a special
15education joint agreement created under Section 10-22.31 of the
16School Code that is a participating instrumentality may include
17in the school district's tax levy under this Section an amount
18sufficient to provide its proportionate share of the
19municipality contributions for current and prior service by
20employees of the participating instrumentality created under
21the joint agreement.
22    (e) Such tax shall be levied and collected in like manner,
23with the general taxes of the municipality and shall be in
24addition to all other taxes which the municipality is now or
25may hereafter be authorized to levy upon all taxable property
26therein, and shall be exclusive of and in addition to the

 

 

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1amount of tax levied for general purposes under Section 8-3-1
2of the "Illinois Municipal Code", approved May 29, 1961, as
3amended, or under any other law or laws which may limit the
4amount of tax which the municipality may levy for general
5purposes. The tax may be levied by the governing body of the
6municipality without being authorized as being additional to
7all other taxes by a vote of the people of the municipality.
8    (f) The county clerk of the county in which any such
9municipality is located, in reducing tax levies shall not
10consider any such tax as a part of the general tax levy for
11municipality purposes, and shall not include the same in the
12limitation of any other tax rate which may be extended.
13    (g) The amount of the tax to be levied in any year shall,
14within the limits herein prescribed, be determined by the
15governing body of the respective municipality.
16    (h) The revenue derived from any such tax levy shall be
17used only for the contributions required under Section 7-172
18purposes specified in this Article and, as collected, shall be
19paid to the treasurer of the municipality levying the tax.
20Monies received by a county treasurer for use in making
21contributions to a regional office of education for its
22municipality contributions shall be held by him for that
23purpose and paid to the regional office of education in the
24same manner as other monies appropriated for the expense of the
25regional office.
26(Source: P.A. 96-1084, eff. 7-16-10.)
 

 

 

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1    (40 ILCS 5/7-172)  (from Ch. 108 1/2, par. 7-172)
2    Sec. 7-172. Contributions by participating municipalities
3and participating instrumentalities.
4    (a) Each participating municipality and each participating
5instrumentality shall make payment to the fund as follows:
6        1. municipality contributions in an amount determined
7    by applying the municipality contribution rate to each
8    payment of earnings paid to each of its participating
9    employees;
10        2. an amount equal to the employee contributions
11    provided by paragraph paragraphs (a) and (b) of Section
12    7-173, whether or not the employee contributions are
13    withheld as permitted by that Section;
14        3. all accounts receivable, together with interest
15    charged thereon, as provided in Section 7-209;
16        4. if it has no participating employees with current
17    earnings, an amount payable which, over a closed period of
18    20 years for participating municipalities and 10 years for
19    participating instrumentalities, will amortize, at the
20    effective rate for that year, any unfunded obligation. The
21    unfunded obligation shall be computed as provided in
22    paragraph 2 of subsection (b);
23        5. if it has fewer than 7 participating employees or a
24    negative balance in its municipality reserve, the greater
25    of (A) an amount payable that, over a period of 20 years,

 

 

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1    will amortize at the effective rate for that year any
2    unfunded obligation, computed as provided in paragraph 2 of
3    subsection (b) or (B) the amount required by paragraph 1 of
4    this subsection (a).
5    (b) A separate municipality contribution rate shall be
6determined for each calendar year for all participating
7municipalities together with all instrumentalities thereof.
8The municipality contribution rate shall be determined for
9participating instrumentalities as if they were participating
10municipalities. The municipality contribution rate shall be
11the sum of the following percentages:
12        1. The percentage of earnings of all the participating
13    employees of all participating municipalities and
14    participating instrumentalities which, if paid over the
15    entire period of their service, will be sufficient when
16    combined with all employee contributions available for the
17    payment of benefits, to provide all annuities for
18    participating employees, and the $3,000 death benefit
19    payable under Sections 7-158 and 7-164, such percentage to
20    be known as the normal cost rate.
21        2. The percentage of earnings of the participating
22    employees of each participating municipality and
23    participating instrumentalities necessary to adjust for
24    the difference between the present value of all benefits,
25    excluding temporary and total and permanent disability and
26    death benefits, to be provided for its participating

 

 

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1    employees and the sum of its accumulated municipality
2    contributions and the accumulated employee contributions
3    and the present value of expected future employee and
4    municipality contributions pursuant to subparagraph 1 of
5    this paragraph (b). This adjustment shall be spread over
6    the remainder of the period that is allowable under
7    generally accepted accounting principles.
8        3. The percentage of earnings of the participating
9    employees of all municipalities and participating
10    instrumentalities necessary to provide the present value
11    of all temporary and total and permanent disability
12    benefits granted during the most recent year for which
13    information is available.
14        4. The percentage of earnings of the participating
15    employees of all participating municipalities and
16    participating instrumentalities necessary to provide the
17    present value of the net single sum death benefits expected
18    to become payable from the reserve established under
19    Section 7-206 during the year for which this rate is fixed.
20        5. The percentage of earnings necessary to meet any
21    deficiency arising in the Terminated Municipality Reserve.
22    (c) A separate municipality contribution rate shall be
23computed for each participating municipality or participating
24instrumentality for its sheriff's law enforcement employees.
25    A separate municipality contribution rate shall be
26computed for the sheriff's law enforcement employees of each

 

 

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1forest preserve district that elects to have such employees.
2For the period from January 1, 1986 to December 31, 1986, such
3rate shall be the forest preserve district's regular rate plus
42%.
5    In the event that the Board determines that there is an
6actuarial deficiency in the account of any municipality with
7respect to a person who has elected to participate in the Fund
8under Section 3-109.1 of this Code, the Board may adjust the
9municipality's contribution rate so as to make up that
10deficiency over such reasonable period of time as the Board may
11determine.
12    (d) The Board may establish a separate municipality
13contribution rate for all employees who are program
14participants employed under the federal Comprehensive
15Employment Training Act by all of the participating
16municipalities and instrumentalities. The Board may also
17provide that, in lieu of a separate municipality rate for these
18employees, a portion of the municipality contributions for such
19program participants shall be refunded or an extra charge
20assessed so that the amount of municipality contributions
21retained or received by the fund for all CETA program
22participants shall be an amount equal to that which would be
23provided by the separate municipality contribution rate for all
24such program participants. Refunds shall be made to prime
25sponsors of programs upon submission of a claim therefor and
26extra charges shall be assessed to participating

 

 

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1municipalities and instrumentalities. In establishing the
2municipality contribution rate as provided in paragraph (b) of
3this Section, the use of a separate municipality contribution
4rate for program participants or the refund of a portion of the
5municipality contributions, as the case may be, may be
6considered.
7    (e) Computations of municipality contribution rates for
8the following calendar year shall be made prior to the
9beginning of each year, from the information available at the
10time the computations are made, and on the assumption that the
11employees in each participating municipality or participating
12instrumentality at such time will continue in service until the
13end of such calendar year at their respective rates of earnings
14at such time.
15    (f) Any municipality which is the recipient of State
16allocations representing that municipality's contributions for
17retirement annuity purposes on behalf of its employees as
18provided in Section 12-21.16 of the Illinois Public Aid Code
19shall pay the allocations so received to the Board for such
20purpose. Estimates of State allocations to be received during
21any taxable year shall be considered in the determination of
22the municipality's tax rate for that year under Section 7-171.
23If a special tax is levied under Section 7-171, none of the
24proceeds may be used to reimburse the municipality for the
25amount of State allocations received and paid to the Board. Any
26multiple-county or consolidated health department which

 

 

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1receives contributions from a county under Section 11.2 of "An
2Act in relation to establishment and maintenance of county and
3multiple-county health departments", approved July 9, 1943, as
4amended, or distributions under Section 3 of the Department of
5Public Health Act, shall use these only for municipality
6contributions by the health department.
7    (g) Municipality contributions for the several purposes
8specified shall, for township treasurers and employees in the
9offices of the township treasurers who meet the qualifying
10conditions for coverage hereunder, be allocated among the
11several school districts and parts of school districts serviced
12by such treasurers and employees in the proportion which the
13amount of school funds of each district or part of a district
14handled by the treasurer bears to the total amount of all
15school funds handled by the treasurer.
16    From the funds subject to allocation among districts and
17parts of districts pursuant to the School Code, the trustees
18shall withhold the proportionate share of the liability for
19municipality contributions imposed upon such districts by this
20Section, in respect to such township treasurers and employees
21and remit the same to the Board.
22    The municipality contribution rate for an educational
23service center shall initially be the same rate for each year
24as the regional office of education or school district which
25serves as its administrative agent. When actuarial data become
26available, a separate rate shall be established as provided in

 

 

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1subparagraph (i) of this Section.
2    The municipality contribution rate for a public agency,
3other than a vocational education cooperative, formed under the
4Intergovernmental Cooperation Act shall initially be the
5average rate for the municipalities which are parties to the
6intergovernmental agreement. When actuarial data become
7available, a separate rate shall be established as provided in
8subparagraph (i) of this Section.
9    (h) Each participating municipality and participating
10instrumentality shall make the contributions in the amounts
11provided in this Section in the manner prescribed from time to
12time by the Board and all such contributions shall be
13obligations of the respective participating municipalities and
14participating instrumentalities to this fund. The failure to
15deduct any employee contributions shall not relieve the
16participating municipality or participating instrumentality of
17its obligation to this fund. Delinquent payments of
18contributions due under this Section may, with interest, be
19recovered by civil action against the participating
20municipalities or participating instrumentalities.
21Municipality contributions, other than the amount necessary
22for employee contributions and Social Security contributions,
23for periods of service by employees from whose earnings no
24deductions were made for employee contributions to the fund,
25may be charged to the municipality reserve for the municipality
26or participating instrumentality.

 

 

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1    (i) Contributions by participating instrumentalities shall
2be determined as provided herein except that the percentage
3derived under subparagraph 2 of paragraph (b) of this Section,
4and the amount payable under subparagraph 4 of paragraph (a) of
5this Section, shall be based on an amortization period of 10
6years.
7    (j) Notwithstanding the other provisions of this Section,
8the additional unfunded liability accruing as a result of this
9amendatory Act of the 94th General Assembly shall be amortized
10over a period of 30 years beginning on January 1 of the second
11calendar year following the calendar year in which this
12amendatory Act takes effect, except that the employer may
13provide for a longer amortization period by adopting a
14resolution or ordinance specifying a 35-year or 40-year period
15and submitting a certified copy of the ordinance or resolution
16to the fund no later than June 1 of the calendar year following
17the calendar year in which this amendatory Act takes effect.
18    (k) If the amount of a participating employee's reported
19earnings for any of the 12-month periods used to determine the
20final rate of earnings exceeds the employee's 12 month reported
21earnings with the same employer for the previous year by the
22greater of 6% or 1.5 times the annual increase in the Consumer
23Price Index-U, as established by the United States Department
24of Labor for the preceding September, the participating
25municipality or participating instrumentality that paid those
26earnings shall pay to the Fund, in addition to any other

 

 

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1contributions required under this Article, the present value of
2the increase in the pension resulting from the portion of the
3increase in salary that is in excess of the greater of 6% or
41.5 times the annual increase in the Consumer Price Index-U, as
5determined by the Fund. This present value shall be computed on
6the basis of the actuarial assumptions and tables used in the
7most recent actuarial valuation of the Fund that is available
8at the time of the computation.
9    Whenever it determines that a payment is or may be required
10under this subsection (k), the fund shall calculate the amount
11of the payment and bill the participating municipality or
12participating instrumentality for that amount. The bill shall
13specify the calculations used to determine the amount due. If
14the participating municipality or participating
15instrumentality disputes the amount of the bill, it may, within
1630 days after receipt of the bill, apply to the fund in writing
17for a recalculation. The application must specify in detail the
18grounds of the dispute. Upon receiving a timely application for
19recalculation, the fund shall review the application and, if
20appropriate, recalculate the amount due. The participating
21municipality and participating instrumentality contributions
22required under this subsection (k) may be paid in the form of a
23lump sum within 90 days after receipt of the bill. If the
24participating municipality and participating instrumentality
25contributions are not paid within 90 days after receipt of the
26bill, then interest will be charged at a rate equal to the

 

 

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1fund's annual actuarially assumed rate of return on investment
2compounded annually from the 91st day after receipt of the
3bill. Payments must be concluded within 3 years after receipt
4of the bill by the participating municipality or participating
5instrumentality.
6    When assessing payment for any amount due under this
7subsection (k), the fund shall exclude earnings increases
8resulting from overload or overtime earnings.
9    When assessing payment for any amount due under this
10subsection (k), the fund shall also exclude earnings increases
11attributable to standard employment promotions resulting in
12increased responsibility and workload.
13    This subsection (k) does not apply to earnings increases
14paid to individuals under contracts or collective bargaining
15agreements entered into, amended, or renewed before January 1,
162012 (the effective date of Public Act 97-609) this amendatory
17Act of the 97th General Assembly, earnings increases paid to
18members who are 10 years or more from retirement eligibility,
19or earnings increases resulting from an increase in the number
20of hours required to be worked.
21    When assessing payment for any amount due under this
22subsection (k), the fund shall also exclude earnings
23attributable to personnel policies adopted before January 1,
242012 (the effective date of Public Act 97-609) this amendatory
25Act of the 97th General Assembly as long as those policies are
26not applicable to employees who begin service on or after

 

 

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1January 1, 2012 (the effective date of Public Act 97-609) this
2amendatory Act of the 97th General Assembly.
3(Source: P.A. 96-1084, eff. 7-16-10; 96-1140, eff. 7-21-10;
497-333, eff. 8-12-11; 97-609, eff. 1-1-12.)
 
5    (40 ILCS 5/7-172.2)  (from Ch. 108 1/2, par. 7-172.2)
6    Sec. 7-172.2. In addition to the payments otherwise
7required by this Article, each participating municipality and
8each participating instrumentality shall make payment of
9Social Security contributions and medicare taxes in the amounts
10and in the manner provided by law. Each employee shall make
11contributions for Federal Social Security and medicare taxes,
12for periods during which he or she is a covered employee, as
13required by the Social Security Enabling Act and State and
14federal law.
15(Source: P.A. 84-1472.)
 
16    (40 ILCS 5/7-173)  (from Ch. 108 1/2, par. 7-173)
17    Sec. 7-173. Contributions by employees.
18    (a) Each participating employee shall make contributions
19to the fund as follows:
20        1. For retirement annuity purposes, normal
21    contributions of 3 3/4% of earnings.
22        2. Additional contributions of such percentages of
23    each payment of earnings, as shall be elected by the
24    employee for retirement annuity purposes, but not in excess

 

 

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1    of 10%. The selected rate shall be applicable to all
2    earnings paid following receipt by the Board of written
3    notice of election to make such contributions. Additional
4    contributions at the selected rate shall be made
5    concurrently with normal contributions.
6        3. Survivor contributions, by each participating
7    employee, of 3/4% of each payment of earnings.
8    (b) (Blank) Each employee shall make contributions for
9Federal Social Security taxes, for periods during which he is a
10covered employee, as required by the Social Security Enabling
11Act and State and federal law. For participating employees,
12such contributions shall be in addition to those required under
13paragraph (a) of this Section.
14    (c) Contributions shall be deducted from each
15corresponding payment of earnings paid to each employee and
16shall be remitted to the board by the participating
17municipality or participating instrumentality making such
18payment. The remittance, together with a report of the earnings
19and contributions shall be made as directed by the board. For
20township treasurers and employees of township treasurers
21qualifying as employees hereunder, the contributions herein
22required as deductions from salary shall be withheld by the
23school township trustees from funds available for the payment
24of the compensation of such treasurers and employees as
25provided in the School Code and remitted to the board.
26    (d) An employee who has made additional contributions under

 

 

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1paragraph (a)2 of this Section may upon retirement or at any
2time prior thereto, elect to withdraw the total of such
3additional contributions including interest credited thereon
4to the end of the preceding calendar year.
5    (e) Failure to make the deductions for employee
6contributions provided in paragraph (c) of this Section shall
7not relieve the employee from liability for such contributions.
8The amount of such liability may be deducted, with interest
9charged under Section 7-209, from any annuities or benefits
10payable hereunder to the employee or any other person receiving
11an annuity or benefit by reason of such employee's
12participation.
13    (f) A participating employee who has at least 40 years of
14creditable service in the Fund may elect to cease making the
15contributions required under this Section. The status of the
16employee under this Article shall be unaffected by this
17election, except that the employee shall not receive any
18additional creditable service for the periods of employment
19following the election. An election under this subsection
20relieves the employer from making additional employer
21contributions in relation to that employee.
22(Source: P.A. 96-1084, eff. 7-16-10; 96-1258, eff. 7-23-10;
2397-333, eff. 8-12-11.)
 
24    (40 ILCS 5/7-220)  (from Ch. 108 1/2, par. 7-220)
25    Sec. 7-220. Administrative review. The provisions of the

 

 

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1Administrative Review Law, and all amendments and
2modifications thereof and the rules adopted pursuant thereto
3shall apply to and govern all proceedings for the judicial
4review of final administrative decisions of the retirement
5board provided for under this Article. The term "administrative
6decision" is as defined in Section 3-101 of the Code of Civil
7Procedure. The venue for actions brought under the
8Administrative Review Law shall be any county in which the
9Board maintains an office or the county in which the member's
10plaintiff's employing participating municipality or
11participating instrumentality has its main office.
12(Source: P.A. 96-1140, eff. 7-21-10.)
 
13    (40 ILCS 5/15-113)  (from Ch. 108 1/2, par. 15-113)
14    Sec. 15-113. Service. "Service": The periods defined in
15Sections 15-113.1 through 15-113.9 and Section 15-113.11.
16(Source: P.A. 84-1472.)
 
17    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
18    Sec. 15-135. Retirement annuities - Conditions.
19    (a) A participant who retires in one of the following
20specified years with the specified amount of service is
21entitled to a retirement annuity at any age under the
22retirement program applicable to the participant:
23        35 years if retirement is in 1997 or before;
24        34 years if retirement is in 1998;

 

 

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1        33 years if retirement is in 1999;
2        32 years if retirement is in 2000;
3        31 years if retirement is in 2001;
4        30 years if retirement is in 2002 or later.
5    A participant with 8 or more years of service after
6September 1, 1941, is entitled to a retirement annuity on or
7after attainment of age 55.
8    A participant with at least 5 but less than 8 years of
9service after September 1, 1941, is entitled to a retirement
10annuity on or after attainment of age 62.
11    A participant who has at least 25 years of service in this
12system as a police officer or firefighter is entitled to a
13retirement annuity on or after the attainment of age 50, if
14Rule 4 of Section 15-136 is applicable to the participant.
15    (b) The annuity payment period shall begin on the date
16specified by the participant or the recipient of a disability
17retirement annuity submitting a written application, which
18date shall not be prior to termination of employment or more
19than one year before the application is received by the board;
20however, if the participant is not an employee of an employer
21participating in this System or in a participating system as
22defined in Article 20 of this Code on April 1 of the calendar
23year next following the calendar year in which the participant
24attains age 70 1/2, the annuity payment period shall begin on
25that date regardless of whether an application has been filed.
26    (c) An annuity is not payable if the amount provided under

 

 

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1Section 15-136 is less than $10 per month.
2(Source: P.A. 92-749, eff. 8-2-02.)
 
3    (40 ILCS 5/15-136)  (from Ch. 108 1/2, par. 15-136)
4    Sec. 15-136. Retirement annuities - Amount. The provisions
5of this Section 15-136 apply only to those participants who are
6participating in the traditional benefit package or the
7portable benefit package and do not apply to participants who
8are participating in the self-managed plan.
9    (a) The amount of a participant's retirement annuity,
10expressed in the form of a single-life annuity, shall be
11determined by whichever of the following rules is applicable
12and provides the largest annuity:
13    Rule 1: The retirement annuity shall be 1.67% of final rate
14of earnings for each of the first 10 years of service, 1.90%
15for each of the next 10 years of service, 2.10% for each year
16of service in excess of 20 but not exceeding 30, and 2.30% for
17each year in excess of 30; or for persons who retire on or
18after January 1, 1998, 2.2% of the final rate of earnings for
19each year of service.
20    Rule 2: The retirement annuity shall be the sum of the
21following, determined from amounts credited to the participant
22in accordance with the actuarial tables and the effective
23prescribed rate of interest in effect at the time the
24retirement annuity begins:
25        (i) the normal annuity which can be provided on an

 

 

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1    actuarially equivalent basis, by the accumulated normal
2    contributions as of the date the annuity begins;
3        (ii) an annuity from employer contributions of an
4    amount equal to that which can be provided on an
5    actuarially equivalent basis from the accumulated normal
6    contributions made by the participant under Section
7    15-113.6 and Section 15-113.7 plus 1.4 times all other
8    accumulated normal contributions made by the participant;
9    and
10        (iii) the annuity that can be provided on an
11    actuarially equivalent basis from the entire contribution
12    made by the participant under Section 15-113.3.
13    With respect to a police officer or firefighter who retires
14on or after August 14, 1998, the accumulated normal
15contributions taken into account under clauses (i) and (ii) of
16this Rule 2 shall include the additional normal contributions
17made by the police officer or firefighter under Section
1815-157(a).
19    The amount of a retirement annuity calculated under this
20Rule 2 shall be computed solely on the basis of the
21participant's accumulated normal contributions, as specified
22in this Rule and defined in Section 15-116. Neither an employee
23or employer contribution for early retirement under Section
2415-136.2 nor any other employer contribution shall be used in
25the calculation of the amount of a retirement annuity under
26this Rule 2.

 

 

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1    This amendatory Act of the 91st General Assembly is a
2clarification of existing law and applies to every participant
3and annuitant without regard to whether status as an employee
4terminates before the effective date of this amendatory Act.
5    This Rule 2 does not apply to a person who first becomes an
6employee under this Article on or after July 1, 2005.
7    Rule 3: The retirement annuity of a participant who is
8employed at least one-half time during the period on which his
9or her final rate of earnings is based, shall be equal to the
10participant's years of service not to exceed 30, multiplied by
11(1) $96 if the participant's final rate of earnings is less
12than $3,500, (2) $108 if the final rate of earnings is at least
13$3,500 but less than $4,500, (3) $120 if the final rate of
14earnings is at least $4,500 but less than $5,500, (4) $132 if
15the final rate of earnings is at least $5,500 but less than
16$6,500, (5) $144 if the final rate of earnings is at least
17$6,500 but less than $7,500, (6) $156 if the final rate of
18earnings is at least $7,500 but less than $8,500, (7) $168 if
19the final rate of earnings is at least $8,500 but less than
20$9,500, and (8) $180 if the final rate of earnings is $9,500 or
21more, except that the annuity for those persons having made an
22election under Section 15-154(a-1) shall be calculated and
23payable under the portable retirement benefit program pursuant
24to the provisions of Section 15-136.4.
25    Rule 4: A participant who is at least age 50 and has 25 or
26more years of service as a police officer or firefighter, and a

 

 

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1participant who is age 55 or over and has at least 20 but less
2than 25 years of service as a police officer or firefighter,
3shall be entitled to a retirement annuity of 2 1/4% of the
4final rate of earnings for each of the first 10 years of
5service as a police officer or firefighter, 2 1/2% for each of
6the next 10 years of service as a police officer or
7firefighter, and 2 3/4% for each year of service as a police
8officer or firefighter in excess of 20. The retirement annuity
9for all other service shall be computed under Rule 1.
10    For purposes of this Rule 4, a participant's service as a
11firefighter shall also include the following:
12        (i) service that is performed while the person is an
13    employee under subsection (h) of Section 15-107; and
14        (ii) in the case of an individual who was a
15    participating employee employed in the fire department of
16    the University of Illinois's Champaign-Urbana campus
17    immediately prior to the elimination of that fire
18    department and who immediately after the elimination of
19    that fire department transferred to another job with the
20    University of Illinois, service performed as an employee of
21    the University of Illinois in a position other than police
22    officer or firefighter, from the date of that transfer
23    until the employee's next termination of service with the
24    University of Illinois.
25    Rule 5: The retirement annuity of a participant who elected
26early retirement under the provisions of Section 15-136.2 and

 

 

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1who, on or before February 16, 1995, brought administrative
2proceedings pursuant to the administrative rules adopted by the
3System to challenge the calculation of his or her retirement
4annuity shall be the sum of the following, determined from
5amounts credited to the participant in accordance with the
6actuarial tables and the prescribed rate of interest in effect
7at the time the retirement annuity begins:
8        (i) the normal annuity which can be provided on an
9    actuarially equivalent basis, by the accumulated normal
10    contributions as of the date the annuity begins; and
11        (ii) an annuity from employer contributions of an
12    amount equal to that which can be provided on an
13    actuarially equivalent basis from the accumulated normal
14    contributions made by the participant under Section
15    15-113.6 and Section 15-113.7 plus 1.4 times all other
16    accumulated normal contributions made by the participant;
17    and
18        (iii) an annuity which can be provided on an
19    actuarially equivalent basis from the employee
20    contribution for early retirement under Section 15-136.2,
21    and an annuity from employer contributions of an amount
22    equal to that which can be provided on an actuarially
23    equivalent basis from the employee contribution for early
24    retirement under Section 15-136.2.
25    In no event shall a retirement annuity under this Rule 5 be
26lower than the amount obtained by adding (1) the monthly amount

 

 

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1obtained by dividing the combined employee and employer
2contributions made under Section 15-136.2 by the System's
3annuity factor for the age of the participant at the beginning
4of the annuity payment period and (2) the amount equal to the
5participant's annuity if calculated under Rule 1, reduced under
6Section 15-136(b) as if no contributions had been made under
7Section 15-136.2.
8    With respect to a participant who is qualified for a
9retirement annuity under this Rule 5 whose retirement annuity
10began before the effective date of this amendatory Act of the
1191st General Assembly, and for whom an employee contribution
12was made under Section 15-136.2, the System shall recalculate
13the retirement annuity under this Rule 5 and shall pay any
14additional amounts due in the manner provided in Section
1515-186.1 for benefits mistakenly set too low.
16    The amount of a retirement annuity calculated under this
17Rule 5 shall be computed solely on the basis of those
18contributions specifically set forth in this Rule 5. Except as
19provided in clause (iii) of this Rule 5, neither an employee
20nor employer contribution for early retirement under Section
2115-136.2, nor any other employer contribution, shall be used in
22the calculation of the amount of a retirement annuity under
23this Rule 5.
24    The General Assembly has adopted the changes set forth in
25Section 25 of this amendatory Act of the 91st General Assembly
26in recognition that the decision of the Appellate Court for the

 

 

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1Fourth District in Mattis v. State Universities Retirement
2System et al. might be deemed to give some right to the
3plaintiff in that case. The changes made by Section 25 of this
4amendatory Act of the 91st General Assembly are a legislative
5implementation of the decision of the Appellate Court for the
6Fourth District in Mattis v. State Universities Retirement
7System et al. with respect to that plaintiff.
8    The changes made by Section 25 of this amendatory Act of
9the 91st General Assembly apply without regard to whether the
10person is in service as an employee on or after its effective
11date.
12    (b) The retirement annuity provided under Rules 1 and 3
13above shall be reduced by 1/2 of 1% for each month the
14participant is under age 60 at the time of retirement. However,
15this reduction shall not apply in the following cases:
16        (1) For a disabled participant whose disability
17    benefits have been discontinued because he or she has
18    exhausted eligibility for disability benefits under clause
19    (6) of Section 15-152;
20        (2) For a participant who has at least the number of
21    years of service required to retire at any age under
22    subsection (a) of Section 15-135; or
23        (3) For that portion of a retirement annuity which has
24    been provided on account of service of the participant
25    during periods when he or she performed the duties of a
26    police officer or firefighter, if these duties were

 

 

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1    performed for at least 5 years immediately preceding the
2    date the retirement annuity is to begin.
3    (c) The maximum retirement annuity provided under Rules 1,
42, 4, and 5 shall be the lesser of (1) the annual limit of
5benefits as specified in Section 415 of the Internal Revenue
6Code of 1986, as such Section may be amended from time to time
7and as such benefit limits shall be adjusted by the
8Commissioner of Internal Revenue, and (2) 80% of final rate of
9earnings.
10    (d) An annuitant whose status as an employee terminates
11after August 14, 1969 shall receive automatic increases in his
12or her retirement annuity as follows:
13    Effective January 1 immediately following the date the
14retirement annuity begins, the annuitant shall receive an
15increase in his or her monthly retirement annuity of 0.125% of
16the monthly retirement annuity provided under Rule 1, Rule 2,
17Rule 3, Rule 4, or Rule 5, contained in this Section,
18multiplied by the number of full months which elapsed from the
19date the retirement annuity payments began to January 1, 1972,
20plus 0.1667% of such annuity, multiplied by the number of full
21months which elapsed from January 1, 1972, or the date the
22retirement annuity payments began, whichever is later, to
23January 1, 1978, plus 0.25% of such annuity multiplied by the
24number of full months which elapsed from January 1, 1978, or
25the date the retirement annuity payments began, whichever is
26later, to the effective date of the increase.

 

 

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1    The annuitant shall receive an increase in his or her
2monthly retirement annuity on each January 1 thereafter during
3the annuitant's life of 3% of the monthly annuity provided
4under Rule 1, Rule 2, Rule 3, Rule 4, or Rule 5 contained in
5this Section. The change made under this subsection by P.A.
681-970 is effective January 1, 1980 and applies to each
7annuitant whose status as an employee terminates before or
8after that date.
9    Beginning January 1, 1990, all automatic annual increases
10payable under this Section shall be calculated as a percentage
11of the total annuity payable at the time of the increase,
12including all increases previously granted under this Article.
13    The change made in this subsection by P.A. 85-1008 is
14effective January 26, 1988, and is applicable without regard to
15whether status as an employee terminated before that date.
16    (e) If, on January 1, 1987, or the date the retirement
17annuity payment period begins, whichever is later, the sum of
18the retirement annuity provided under Rule 1 or Rule 2 of this
19Section and the automatic annual increases provided under the
20preceding subsection or Section 15-136.1, amounts to less than
21the retirement annuity which would be provided by Rule 3, the
22retirement annuity shall be increased as of January 1, 1987, or
23the date the retirement annuity payment period begins,
24whichever is later, to the amount which would be provided by
25Rule 3 of this Section. Such increased amount shall be
26considered as the retirement annuity in determining benefits

 

 

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1provided under other Sections of this Article. This paragraph
2applies without regard to whether status as an employee
3terminated before the effective date of this amendatory Act of
41987, provided that the annuitant was employed at least
5one-half time during the period on which the final rate of
6earnings was based.
7    (f) A participant is entitled to such additional annuity as
8may be provided on an actuarially equivalent basis, by any
9accumulated additional contributions to his or her credit.
10However, the additional contributions made by the participant
11toward the automatic increases in annuity provided under this
12Section shall not be taken into account in determining the
13amount of such additional annuity.
14    (g) If, (1) by law, a function of a governmental unit, as
15defined by Section 20-107 of this Code, is transferred in whole
16or in part to an employer, and (2) a participant transfers
17employment from such governmental unit to such employer within
186 months after the transfer of the function, and (3) the sum of
19(A) the annuity payable to the participant under Rule 1, 2, or
203 of this Section (B) all proportional annuities payable to the
21participant by all other retirement systems covered by Article
2220, and (C) the initial primary insurance amount to which the
23participant is entitled under the Social Security Act, is less
24than the retirement annuity which would have been payable if
25all of the participant's pension credits validated under
26Section 20-109 had been validated under this system, a

 

 

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1supplemental annuity equal to the difference in such amounts
2shall be payable to the participant.
3    (h) On January 1, 1981, an annuitant who was receiving a
4retirement annuity on or before January 1, 1971 shall have his
5or her retirement annuity then being paid increased $1 per
6month for each year of creditable service. On January 1, 1982,
7an annuitant whose retirement annuity began on or before
8January 1, 1977, shall have his or her retirement annuity then
9being paid increased $1 per month for each year of creditable
10service.
11    (i) On January 1, 1987, any annuitant whose retirement
12annuity began on or before January 1, 1977, shall have the
13monthly retirement annuity increased by an amount equal to 8
14per year of creditable service times the number of years that
15have elapsed since the annuity began.
16(Source: P.A. 93-347, eff. 7-24-03; 94-4, eff. 6-1-05.)
 
17    (40 ILCS 5/15-136.4)
18    Sec. 15-136.4. Retirement and Survivor Benefits Under
19Portable Benefit Package.
20    (a) This Section 15-136.4 describes the form of annuity and
21survivor benefits available to a participant who has elected
22the portable benefit package and has completed the one-year
23waiting period required under subsection (e) of Section
2415-134.5. For purposes of this Section, the term "eligible
25spouse" means the husband or wife of a participant to whom the

 

 

HB4622 Enrolled- 32 -LRB097 16031 JDS 61183 b

1participant is married on the date the participant's annuity
2payment period begins, provided however, that if the
3participant should die prior to the commencement of retirement
4annuity benefits, then "eligible spouse" means the husband or
5wife, if any, to whom the participant was married throughout
6the one-year period preceding the date of his or her death.
7    (b) This subsection (b) describes the normal form of
8annuity payable to a participant subject to this Section
915-136.4. If the participant is unmarried on the date his or
10her annuity payment period begins, then the annuity payments
11shall be made in the form of a single-life annuity as described
12in Section 15-118. If the participant is married on the date
13his or her annuity payments commence, then the annuity payments
14shall be paid in the form of a qualified joint and survivor
15annuity that is the actuarial equivalent of the single-life
16annuity. Under the "qualified joint and survivor annuity", a
17reduced amount shall be paid to the participant for his or her
18lifetime and his or her eligible spouse, if surviving at the
19participant's death, shall be entitled to receive thereafter a
20lifetime survivorship annuity in a monthly amount equal to 50%
21of the reduced monthly amount that was payable to the
22participant. The last payment of a qualified joint and survivor
23annuity shall be made as of the first day of the month in which
24the death of the survivor occurs.
25    (c) Instead of the normal form of annuity that would be
26paid under subsection (b), a participant may elect in writing

 

 

HB4622 Enrolled- 33 -LRB097 16031 JDS 61183 b

1within the 180-day 90-day period prior to the date his or her
2annuity payments commence to waive the normal form of annuity
3payment and receive an optional form of payment as described in
4subsection (h). If the participant is married and elects an
5optional form of payment under subsection (h) other than a
6joint and survivor annuity with the eligible spouse designated
7as the contingent annuitant, then such election shall require
8the consent of his or her eligible spouse in the manner
9described in subsection (d). At any time during the 180-day
1090-day period preceding the date the participant's payment
11period begins, the participant may revoke the optional form of
12payment elected under this subsection (c) and reinstate
13coverage under the qualified joint and survivor annuity without
14the spouse's consent, but an election to revoke the optional
15form elected and elect a new optional form of payment or
16designate a different contingent annuitant shall not be
17effective without the eligible spouse's consent.
18    (d) The eligible spouse's consent to any election made
19pursuant to this Section that requires the eligible spouse's
20consent shall be in writing and shall acknowledge the effect of
21the consent. In addition, the eligible spouse's signature on
22the written consent must be witnessed by a notary public. The
23eligible spouse's consent need not be obtained if the system is
24satisfied that there is no eligible spouse, that the eligible
25spouse cannot be located, or because of any other relevant
26circumstances. An eligible spouse's consent under this Section

 

 

HB4622 Enrolled- 34 -LRB097 16031 JDS 61183 b

1is valid only with respect to the specified optional form of
2payment and, if applicable, contingent annuitant designated by
3the participant. If the optional form of payment or the
4contingent annuitant is subsequently changed (other than by a
5revocation of the optional form of payment and reinstatement of
6the qualified joint and survivor annuity), a new consent by the
7eligible spouse is required. The eligible spouse's consent to
8an election made by a participant pursuant to this Section,
9once made, may not be revoked by the eligible spouse.
10    (e) Within a reasonable period of time preceding the date a
11participant's annuity commences, a participant shall be
12supplied with a written explanation of (1) the terms and
13conditions of the normal form single-life annuity and qualified
14joint and survivor annuity, (2) the participant's right to
15elect a single-life annuity or an optional form of payment
16under subsection (h) subject to his or her eligible spouse's
17consent, if applicable, and (3) the participant's right to
18reinstate coverage under the qualified joint and survivor
19annuity prior to his or her annuity commencement date by
20revoking an election of an optional form of payment under
21subsection (h).
22    (f) If a married participant with at least 1.5 years of
23service dies prior to commencing retirement annuity payments
24and prior to taking a refund under Section 15-154, his or her
25eligible spouse is entitled to receive a pre-retirement
26survivor annuity, if there is not then in effect a waiver of

 

 

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1the pre-retirement survivor annuity. The pre-retirement
2survivor annuity payable under this subsection shall be a
3monthly annuity payable for the eligible spouse's life,
4commencing as of the beginning of the month next following the
5later of the date of the participant's death or the date the
6participant would have first met the eligibility requirements
7for retirement, and continuing through the beginning of the
8month in which the death of the eligible spouse occurs. The
9monthly amount payable to the spouse under the pre-retirement
10survivor annuity shall be equal to the monthly amount that
11would be payable as a survivor annuity under the qualified
12joint and survivor annuity described in subsection (b) if: (1)
13in the case of a participant who dies on or after the date on
14which the participant has met the eligibility requirements for
15retirement, the participant had retired with an immediate
16qualified joint and survivor annuity on the day before the
17participant's date of death; or (2) in the case of a
18participant who dies before the earliest date on which the
19participant would have met the eligibility requirements for
20retirement age, the participant had separated from service on
21the date of death, survived to the earliest retirement age
22based on service prior to his or her death, retired with an
23immediate qualified joint and survivor annuity at the earliest
24retirement age, and died on the day after the day on which the
25participant would have attained the earliest retirement age.
26    (g) A married participant who has not retired may elect at

 

 

HB4622 Enrolled- 36 -LRB097 16031 JDS 61183 b

1any time to waive the pre-retirement survivor annuity described
2in subsection (f). Any such election shall require the consent
3of the participant's eligible spouse in the manner described in
4subsection (d). A waiver of the pre-retirement survivor annuity
5shall increase the lump sum death benefit payable under
6subsection (b) of Section 15-141. Prior to electing any waiver
7of the pre-retirement survivor annuity, the participant shall
8be provided with a written explanation of (1) the terms and
9conditions of the pre-retirement survivor annuity and the death
10benefits payable from the system both with and without the
11pre-retirement survivor annuity, (2) the participant's right
12to elect a waiver of the pre-retirement survivor annuity
13coverage subject to his or her spouse's consent, and (3) the
14participant's right to reinstate pre-retirement survivor
15annuity coverage at any time by revoking a prior waiver of such
16coverage.
17    (h) By filing a timely election with the system, a
18participant who will be eligible to receive a retirement
19annuity under this Section may waive the normal form of annuity
20payment described in subsection (b), subject to obtaining the
21consent of his or her eligible spouse, if applicable, and elect
22to receive any one of the following optional forms of payment:
23        (1) Joint and Survivor Annuity Options: The
24    participant may elect to receive a reduced annuity payable
25    for his or her life and to have a lifetime survivorship
26    annuity in a monthly amount equal to 50%, 75%, or 100% (as

 

 

HB4622 Enrolled- 37 -LRB097 16031 JDS 61183 b

1    elected by the participant) of that reduced monthly amount,
2    to be paid after the participant's death to his or her
3    contingent annuitant, if the contingent annuitant is alive
4    at the time of the participant's death.
5        (2) Single-Life Annuity Option (optional for married
6    participants). The participant may elect to receive a
7    single-life annuity payable for his or her life only.
8        (3) Lump sum retirement benefit. The participant may
9    elect to receive a lump sum retirement benefit that is
10    equal to the amount of a refund payable under Section
11    15-154(a-2).
12All joint and survivor annuity forms shall be in an amount that
13is the actuarial equivalent of the single-life annuity.
14    For the purposes of this Section, the term "contingent
15annuitant" means the beneficiary who is designated by a
16participant at the time the participant elects a joint and
17survivor annuity to receive the lifetime survivorship annuity
18in the event the beneficiary survives the participant at the
19participant's death.
20    (i) Under no circumstances may an option be elected,
21changed, or revoked after the date the participant's retirement
22annuity commences.
23    (j) An election made pursuant to subsection (h) shall
24become inoperative if the participant or the contingent
25annuitant dies before the date the participant's annuity
26payments commence, or if the eligible spouse's consent is

 

 

HB4622 Enrolled- 38 -LRB097 16031 JDS 61183 b

1required and not given.
2    (k) (Blank).
3    (l) The automatic annual increases described in subsection
4(d) of Section 15-136 shall apply to retirement benefits under
5the portable benefit package and the automatic annual increases
6described in subsection (j) of Section 15-145 shall apply to
7survivor benefits under the portable benefit package.
8(Source: P.A. 96-586, eff. 8-18-09.)
 
9    (40 ILCS 5/15-139)  (from Ch. 108 1/2, par. 15-139)
10    Sec. 15-139. Retirement annuities; cancellation; suspended
11during employment.
12    (a) If an annuitant returns to employment for an employer
13within 60 days after the beginning of the retirement annuity
14payment period, the retirement annuity shall be cancelled, and
15the annuitant shall refund to the System the total amount of
16the retirement annuity payments which he or she received. If
17the retirement annuity is cancelled, the participant shall
18continue to participate in the System.
19    (b) If an annuitant retires prior to age 60 and receives or
20becomes entitled to receive during any month compensation in
21excess of the monthly retirement annuity (including any
22automatic annual increases) for services performed after the
23date of retirement for any employer under this System, that
24portion of the monthly retirement annuity provided by employer
25contributions shall not be payable.

 

 

HB4622 Enrolled- 39 -LRB097 16031 JDS 61183 b

1    If an annuitant retires at age 60 or over and receives or
2becomes entitled to receive during any academic year
3compensation in excess of the difference between his or her
4highest annual earnings prior to retirement and his or her
5annual retirement annuity computed under Rule 1, Rule 2, Rule
63, Rule 4, or Rule 5 of Section 15-136, or under Section
715-136.4, for services performed after the date of retirement
8for any employer under this System, that portion of the monthly
9retirement annuity provided by employer contributions shall be
10reduced by an amount equal to the compensation that exceeds
11such difference.
12    However, any remuneration received for serving as a member
13of the Illinois Educational Labor Relations Board shall be
14excluded from "compensation" for the purposes of this
15subsection (b), and serving as a member of the Illinois
16Educational Labor Relations Board shall not be deemed to be a
17return to employment for the purposes of this Section. This
18provision applies without regard to whether service was
19terminated prior to the effective date of this amendatory Act
20of 1991.
21    (c) If an employer certifies that an annuitant has been
22reemployed on a permanent and continuous basis or in a position
23in which the annuitant is expected to serve for at least 9
24months, the annuitant shall resume his or her status as a
25participating employee and shall be entitled to all rights
26applicable to participating employees upon filing with the

 

 

HB4622 Enrolled- 40 -LRB097 16031 JDS 61183 b

1board an election to forego all annuity payments during the
2period of reemployment. Upon subsequent retirement, the
3retirement annuity shall consist of the annuity which was
4terminated by the reemployment, plus the additional retirement
5annuity based upon service granted during the period of
6reemployment, but the combined retirement annuity shall not
7exceed the maximum annuity applicable on the date of the last
8retirement.
9    The total service and earnings credited before and after
10the initial date of retirement shall be considered in
11determining eligibility of the employee or the employee's
12beneficiary to benefits under this Article, and in calculating
13final rate of earnings.
14    In determining the death benefit payable to a beneficiary
15of an annuitant who again becomes a participating employee
16under this Section, accumulated normal and additional
17contributions shall be considered as the sum of the accumulated
18normal and additional contributions at the date of initial
19retirement and the accumulated normal and additional
20contributions credited after that date, less the sum of the
21annuity payments received by the annuitant.
22    The survivors insurance benefits provided under Section
2315-145 shall not be applicable to an annuitant who resumes his
24or her status as a participating employee, unless the
25annuitant, at the time of initial retirement, has a survivors
26insurance beneficiary who could qualify for such benefits.

 

 

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1    If the participant's annuitant's employment is terminated
2because of circumstances other than death before 9 months from
3the date of reemployment, the provisions of this Section
4regarding resumption of status as a participating employee
5shall not apply. The normal and survivors insurance
6contributions which are deducted during this period shall be
7refunded to the annuitant without interest, and subsequent
8benefits under this Article shall be the same as those which
9were applicable prior to the date the annuitant resumed
10employment.
11    The amendments made to this Section by this amendatory Act
12of the 91st General Assembly apply without regard to whether
13the annuitant was in service on or after the effective date of
14this amendatory Act.
15(Source: P.A. 91-887 (Sections 10 and 25), eff. 7-6-00; 92-16,
16eff. 6-28-01.)
 
17    (40 ILCS 5/15-153.2)  (from Ch. 108 1/2, par. 15-153.2)
18    Sec. 15-153.2. Disability retirement annuity. A
19participant whose disability benefits are discontinued under
20the provisions of clause (6) of Section 15-152 and who is not a
21participant in the optional retirement plan established under
22Section 15-158.2 is entitled to a disability retirement annuity
23of 35% of the basic compensation which was payable to the
24participant at the time that disability began, provided that
25the board determines that the participant has a medically

 

 

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1determinable physical or mental impairment that prevents him or
2her from engaging in any substantial gainful activity, and
3which can be expected to result in death or which has lasted or
4can be expected to last for a continuous period of not less
5than 12 months.
6    The board's determination of whether a participant is
7disabled shall be based upon:
8        (i) a written certificate from one or more licensed and
9    practicing physicians appointed by or acceptable to the
10    board, stating that the participant is unable to engage in
11    any substantial gainful activity; and
12        (ii) any other medical examinations, hospital records,
13    laboratory results, or other information necessary for
14    determining the employment capacity and condition of the
15    participant.
16    The terms "medically determinable physical or mental
17impairment" and "substantial gainful activity" shall have the
18meanings ascribed to them in the federal Social Security Act,
19as now or hereafter amended, and the regulations issued
20thereunder.
21    The disability retirement annuity payment period shall
22begin immediately following the expiration of the disability
23benefit payments under clause (6) of Section 15-152 and shall
24be discontinued for a recipient of a disability retirement
25annuity when (1) the physical or mental impairment no longer
26prevents the participant from engaging in any substantial

 

 

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1gainful activity, (2) the participant dies or (3) the
2participant elects to receive a retirement annuity under
3Sections 15-135 and 15-136. If a person's disability retirement
4annuity is discontinued under clause (1), all rights and
5credits accrued in the system on the date that the disability
6retirement annuity began shall be restored, and the disability
7retirement annuity paid shall be considered as disability
8payments under clause (6) of Section 15-152.
9(Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-511,
10eff. 8-22-97; 90-766, eff. 8-14-98.)
 
11    Section 90. The State Mandates Act is amended by adding
12Section 8.36 as follows:
 
13    (30 ILCS 805/8.36 new)
14    Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8
15of this Act, no reimbursement by the State is required for the
16implementation of any mandate created by this amendatory Act of
17the 97th General Assembly.
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.