093_SB0820ham001

 










                                     LRB093 11011 EFG 14516 a

 1                    AMENDMENT TO SENATE BILL 820

 2        AMENDMENT NO.     .  Amend Senate Bill 820  by  replacing
 3    the title with the following:
 4        "AN ACT in relation to public employee benefits."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7        "Section 5.  The Illinois  Pension  Code  is  amended  by
 8    changing   Sections  16-113,  16-129.1,  16-133.2,  16-149.2,
 9    16-150, 16-151,  16-182,  16-184,  16-185,  and  16-186.3  as
10    follows:

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

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

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

32        (40 ILCS 5/16-149.2) (from Ch. 108 1/2, par. 16-149.2)
33        Sec. 16-149.2.  Disability retirement annuity.
 
                            -6-      LRB093 11011 EFG 14516 a
 1        (a)  A  member  whose   disability   benefit   has   been
 2    terminated  under  the  provisions  of  Section 16-149 may be
 3    retired on a disability retirement annuity payable  effective
 4    the  day  following  such  termination  provided  the  member
 5    remains disabled under the standard of disability provided in
 6    Section 16-149.
 7        The  disability  retirement annuity shall be payable upon
 8    receipt of written certificates  from  at  least  2  licensed
 9    physicians   designated   by   the   System   verifying   the
10    continuation   of  the  disability  condition.  A  disability
11    retirement annuity shall not be paid during  any  period  for
12    which  the  member  receives  benefits  under Section 16-133,
13    Section 16-149, or Section 16-149.1 or has a right to receive
14    a salary as a teacher, or is employed in any  capacity  as  a
15    teacher  by the employers included under this System or in an
16    equivalent capacity in any other public  or  private  school,
17    college or university.
18        (b)  The  disability retirement annuity shall be equal to
19    the larger of:  (1) 35% of the most  recent  annual  contract
20    salary  rate  or  for  part-time and substitute members after
21    June 30, 1990, the most recent annualized salary rate; or (2)
22    if disability commences prior to the member's  attainment  of
23    age  55,  the  amount  computed  in  accordance  with Section
24    16-133, provided the amount computed under paragraph  (B)  of
25    Section  16-133  shall be reduced by 1/2 of 1% for each month
26    that the member is less than age 55;  or  (3)  if  disability
27    commences  after  the  member's attainment of age 55, and the
28    member is not receiving a retirement  annuity  under  Section
29    16-133,  the  amount  computed  in  accordance  with  Section
30    16-133.
31        Prior  to  July  1,  1990,  if  the most recent period of
32    service of  any  member  eligible  to  receive  a  disability
33    retirement  annuity was rendered on a less than full-time but
34    not less than half-time basis, the amount of  the  disability
 
                            -7-      LRB093 11011 EFG 14516 a
 1    retirement  annuity payable shall be computed on the basis of
 2    the salary received by such member for the member's last year
 3    of service on a full-time basis if such  salary  was  greater
 4    than the member's most recent salary.
 5        (c)  If  an  annuitant  receiving a disability retirement
 6    annuity under this Section is engaged in or able to engage in
 7    gainful employment paying more than  the  difference  between
 8    the  disability  retirement  annuity and the salary rate upon
 9    which the disability benefit is based, with no salary  to  be
10    considered  less  than the minimum prescribed in Section 24-8
11    of the School Code, the disability retirement  annuity  shall
12    be reduced to an amount which together with the amount earned
13    by  the  annuitant,  equals  the  salary  rate upon which the
14    disability benefit is based.  However, for  the  purposes  of
15    this  subsection  (c)  only,  the  salary rate upon which the
16    benefit is based shall be deemed to increase by  15%  on  the
17    tenth anniversary of the commencement of the annuity.
18        Once  each  year  during  the  first  5  years  following
19    retirement  on  a  disability retirement annuity, and once in
20    every 3-year period thereafter, the  System  may  require  an
21    annuitant to undergo a medical examination, by a physician or
22    physicians  designated  by  the  System.   If  the  annuitant
23    refuses  to  submit  to such medical examination, the annuity
24    shall be  discontinued  until  such  time  as  the  annuitant
25    consents to the examination, and if refusal continues for one
26    year, all the rights to the annuity shall be revoked.
27        (d)  If   an   annuitant   in  receipt  of  a  disability
28    retirement annuity returns to active service as a teacher  or
29    is  no  longer  disabled,  such  annuity  shall cease and the
30    annuitant shall again  become  a  member  of  the  Retirement
31    System  and,  if  in  active service as a teacher, shall make
32    regular   contributions.      The    remaining    accumulated
33    contributions   shall   be   transferred   to   the  Members'
34    Contribution  Reserve  from   the   Employer's   Contribution
 
                            -8-      LRB093 11011 EFG 14516 a
 1    Reserve.   All  service for which the annuitant had credit on
 2    the date of disability shall be properly reestablished.
 3        An  annuitant  in  receipt  of  a  disability  retirement
 4    annuity who returns to active service as a  teacher  and  who
 5    again   becomes   disabled   shall   not  be  entitled  to  a
 6    recomputation of the disability retirement annuity  based  on
 7    amendments  enacted while the annuitant was in receipt of the
 8    annuity unless at least one year  of  creditable  service  is
 9    rendered after the latest re-entry into service.
10        (e)  An  annuitant  in receipt of a disability retirement
11    annuity may, upon reaching retirement  age  as  specified  in
12    Section 16-132, apply for a retirement annuity which is to be
13    calculated  as  specified  in Section 16-133.  The disability
14    retirement annuity shall be discontinued upon commencement of
15    the retirement annuity.
16        (f)  The  board  shall  prescribe  rules  governing   the
17    filing, investigation, control, and supervision of disability
18    retirement   claims.    The   rules  shall  include  specific
19    standards to  be  used  when  requesting  additional  medical
20    examinations,  hospital  records  or other data necessary for
21    determining the employment  capacity  and  condition  of  the
22    annuitant.   Costs  incurred by a claimant in connection with
23    completing a claim for disability benefits shall be  paid  by
24    the claimant.
25        The  changes  to this Section made by this amendatory Act
26    of 1991 shall apply not only to persons who on or  after  its
27    effective  date are in service as a teacher under the System,
28    but also to persons whose  status  as  a  teacher  terminated
29    prior to that date, whether or not the person is an annuitant
30    on that date.
31    (Source: P.A. 86-273; 86-1488; 87-794.)

32        (40 ILCS 5/16-150) (from Ch. 108 1/2, par. 16-150)
33        Sec.  16-150.   Re-entry.   If  an  annuitant  under this
 
                            -9-      LRB093 11011 EFG 14516 a
 1    System is again employed as a teacher for an aggregate period
 2    exceeding that  permitted  by  Section  16-118,  his  or  her
 3    retirement  annuity  shall  be  terminated  and the annuitant
 4    shall  thereupon  be  regarded  as  an  active  member.   The
 5    annuitant's  remaining  accumulated  contributions  shall  be
 6    transferred to the Members'  Contribution  Reserve  from  the
 7    Employer's Contribution Reserve.
 8        Such  annuitant is not entitled to a recomputation of his
 9    or her retirement annuity unless at least one  full  year  of
10    creditable service is rendered after the latest re-entry into
11    service and the annuitant must have rendered at least 3 years
12    of  creditable  service  after  last re-entry into service to
13    qualify for a recomputation of the retirement  annuity  based
14    on  amendments  enacted  while  in  receipt  of  a retirement
15    annuity, except when retirement was due to disability.
16        However, regardless of age, an annuitant in receipt of  a
17    retirement  annuity  may  be  given temporary employment by a
18    school board  not  exceeding  that  permitted  under  Section
19    16-118 and continue to receive the retirement annuity.
20        Unless  retirement  was  necessitated  by  disability,  a
21    retirement  shall  be considered cancelled and the retirement
22    allowance must be repaid in full if the annuitant is employed
23    as a teacher within the school year during which service  was
24    terminated.
25        An annuitant's retirement which does not include a period
26    of  at  least  one  full  and  complete  school year shall be
27    considered cancelled  and  the  retirement  annuity  must  be
28    repaid  in  full  unless  such retirement was necessitated by
29    disability.
30    (Source: P.A. 86-273; 87-794.)

31        (40 ILCS 5/16-151) (from Ch. 108 1/2, par. 16-151)
32        Sec. 16-151. Refund.  Upon termination of employment as a
33    teacher for any cause  other  than  death  or  retirement,  a
 
                            -10-     LRB093 11011 EFG 14516 a
 1    member shall be paid the following amount upon demand made at
 2    least 4 months after ceasing to teach:
 3             (1)  from   the   Benefit   Trust  Reserve  Members'
 4        Contribution Reserve, the actual total contributions paid
 5        by or on behalf of  the  member  for  membership  service
 6        which  have  not  been  previously refunded and which are
 7        then credited to the member's individual account  in  the
 8        Benefit  Trust  Reserve  Members'  Contribution  Reserve,
 9        without interest thereon, and
10             (2)  from   the  Benefit  Trust  Reserve  Employer's
11        Contribution  Reserve,  the  actual   contributions   not
12        previously  refunded,  paid by or on behalf of the member
13        for prior service and towards the cost of  the  automatic
14        annual  increase  in retirement annuity as provided under
15        Section 16-152, without interest thereon.
16        Any such amounts may be paid to the member either in  one
17    sum  or,  at  the  election  of  the  board,  in  4 quarterly
18    payments.
19        Contributions  credited  to  a  member  for  periods   of
20    disability  as  provided  in Sections 16-149 and 16-149.1 are
21    not refundable.
22        Upon acceptance of  a  refund,  all  accrued  rights  and
23    credits  in  the  System  are forfeited and may be reinstated
24    only if the refund is repaid together with interest from  the
25    date  of the refund to the date of repayment at the following
26    rates compounded annually:  for  periods  prior  to  July  1,
27    1965, regular interest; for periods from July 1, 1965 to June
28    30, 1977, 4% per year; for periods on and after July 1, 1977,
29    regular interest. Repayment shall be permitted upon return to
30    membership; however, service credit previously forfeited by a
31    refund and subsequently reinstated may not be used as a basis
32    for   the  payment  of  benefits,  other  than  a  refund  of
33    contributions,  prior  to  the  completion  of  one  year  of
34    creditable  service  following  the   refund,   except   when
 
                            -11-     LRB093 11011 EFG 14516 a
 1    repayment   is   permitted   under   the  provisions  of  the
 2    "Retirement Systems Reciprocal Act" contained in Article 20.
 3    (Source: P.A. 90-448, eff. 8-16-97.)

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

23        (40 ILCS 5/16-184) (from Ch. 108 1/2, par. 16-184)
24        Sec. 16-184.  Supplementary Annuity Reserve.
25        (a)  Except as provided in subsection (b), a  Reserve  to
26    be  known as the Supplementary Annuity Reserve is established
27    for the purpose of  crediting  funds  received  and  charging
28    disbursements  made for supplementary annuities under Section
29    16-135 and Section 16-149.4.
30        This Reserve shall be credited with:
31             (1)  The  total  of  all   contributions   made   by
32        annuitants to qualify for supplementary annuities.
33             (2)  Amounts  contributed to the System by the State
 
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 1        of Illinois that are sufficient to assure payment of  the
 2        supplementary annuities.
 3             (3)  Regular   interest  computed  annually  on  the
 4        average balance in this reserve.
 5        This Reserve  shall  be  charged  with  all  supplemental
 6    annuity payments under Section 16-135 and Section 16-149.4.
 7        (b)  On  the  July  1,  2003  next  occurring  after  the
 8    effective  date  of  this  amendatory Act of the 91st General
 9    Assembly, the Supplemental Annuity Reserve is  abolished  and
10    any  remaining balance shall be transferred from that Reserve
11    to the Benefit Trust Reserve Employer's Contribution Reserve.
12    (Source: P.A. 91-887, eff. 7-6-00.)

13        (40 ILCS 5/16-185) (from Ch. 108 1/2, par. 16-185)
14        Sec.  16-185.   Benefit  Trust  Employer's   Contribution
15    Reserve.
16        (a)  On July 1, 2003, the Employer's Contribution Reserve
17    shall  be  renamed  the  Benefit  Trust Reserve.  The Benefit
18    Trust Reserve shall serve as a clearing  account  for  income
19    and  expenses  of the System as well as transfers to and from
20    the other reserve accounts established under this Article and
21    adjustments thereto.
22        (b)  This   Reserve   shall   be   credited   with    all
23    contributions,  investment  income, and other income received
24    by the System, except as otherwise required by this Article.:
25             (1)  All amounts contributed by  the  State,  except
26        those  credited  to other reserve accounts as provided in
27        this Article.
28             (2)  The total  member  and  employer  contributions
29        except those required by other reserve accounts.
30             (3)  The  total  income  from invested assets of the
31        System, and other miscellaneous income.
32             (4)  The  interest  portion   of   the   accumulated
33        contributions of members granted refunds.
 
                            -14-     LRB093 11011 EFG 14516 a
 1             (5)  Contributions made by annuitants to qualify for
 2        automatic  annual  increases  in  annuity,  except  those
 3        required by other reserve accounts.
 4        (c)  This  Reserve shall be charged with all benefits and
 5    refunds paid and all other expenses of the System, except  as
 6    otherwise required under this Article.:
 7             (1)  All  amounts necessary to be transferred to the
 8        Members' Contribution Reserve.
 9             (2)  All retirement annuity,  single-sum  retirement
10        benefit   and  disability  retirement  annuity  payments,
11        including automatic annual increases in annuities, except
12        as provided by other reserve accounts.
13             (3)  All  amounts  necessary  to  be   refunded   to
14        withdrawing  members  except  as provided by the Members'
15        Contribution Reserve.
16             (4)  All   benefits   paid   to    temporarily    or
17        accidentally  disabled  members  of  this System, and all
18        amounts credited to the accounts of such disabled members
19        in lieu of contributions.
20             (5)  All amounts payable as death benefits except as
21        provided by the Members' Contribution Reserve.
22             (6)  All amounts necessary for the payment of  costs
23        for  the  health insurance program as provided under this
24        Article.
25             (7)  All survivor benefit contributions refunded  to
26        an annuitant as provided under Section 16-143.2.
27             (8)  All  amounts  paid  in  accordance with Section
28        16-131.1 except as provided by the Members'  Contribution
29        Reserve.
30             (9)  Interest   to  be  credited  to  other  reserve
31        accounts as specified in this Article.
32             (10)  Recognition of unrealized gains or  losses  in
33        market   value,   upon  adoption  of  generally  accepted
34        accounting principles that allow for such recognition.
 
                            -15-     LRB093 11011 EFG 14516 a
 1    (Source: P.A. 89-235, eff. 8-4-95; 90-448, eff. 8-16-97.)

 2        (40 ILCS 5/16-186.3) (from Ch. 108 1/2, par. 16-186.3)
 3        Sec. 16-186.3.  Reserve for minimum retirement annuity.
 4        (a)  A Minimum Retirement Annuity Reserve is  established
 5    for  the  purpose  of  crediting  funds received and charging
 6    disbursements for minimum retirement annuity  payments  under
 7    Section 16-136.2 and Section 16-136.3.
 8        This Reserve shall be credited with:
 9             (1)  The   total   of   all  contributions  made  by
10        annuitants to qualify for the minimum retirement annuity.
11             (2)  Amounts contributed to the System by the  State
12        of  Illinois that are sufficient to assure payment of the
13        minimum  retirement  annuity   payments   under   Section
14        16-136.2 and Section 16-136.3.
15             (3)  Regular   interest  computed  annually  on  the
16        average balance in this Reserve.
17        This Reserve shall be charged with all minimum retirement
18    annuity payments under Section 16-136.2 and Section 16-136.3.
19        (b)  After all minimum retirement annuity  payments  have
20    been completed, any remaining funds shall be transferred from
21    this   Reserve   to  the  Benefit  Trust  Reserve  Employer's
22    Contribution Reserve.
23    (Source: P.A. 88-593, eff. 8-22-94.)

24        Section 99. Effective date.  This Act takes  effect  upon
25    becoming law.".