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Illinois Compiled Statutes
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PENSIONS (40 ILCS 5/) Illinois Pension Code. 40 ILCS 5/Art. 19 Div. 2
(40 ILCS 5/Art. 19 Div. 2 heading)
DIVISION 2.
PUBLIC LIBRARY EMPLOYES'
PENSION FUND
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40 ILCS 5/19-201
(40 ILCS 5/19-201) (from Ch. 108 1/2, par. 19-201)
Sec. 19-201.
Fund - How created.
The board of directors of public libraries organized under an Act of the
General Assembly of the State of Illinois, entitled "An Act to authorize
cities, incorporated towns and townships to establish and maintain free
public libraries and reading rooms", approved and in force March 7, 1872,
and maintained thereunder in cities having a population exceeding 500,000
inhabitants shall have power and it shall be its duty to create a public
library employes' pension fund, which shall consist of amounts retained
from the salaries or wages of employes, as hereinafter provided, which
amounts shall be deducted in equal monthly installments from such salaries
or wages at the regular time or times of the payment thereof, all fees or
penalties collected for retention of books beyond the time prescribed by
rule of the board of directors by virtue of by-laws, rules and regulations
adopted under authority of Section 5 of the Act herein referred to by its
title and such other moneys derived from miscellaneous sources as the
board of directors shall determine.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/19-202
(40 ILCS 5/19-202) (from Ch. 108 1/2, par. 19-202)
Sec. 19-202.
The 1905 Act.
For the purposes of this Division the term "The 1905 Act" means "An Act
to provide for the formation and disbursement of a public library employes'
pension fund in cities having a population exceeding 500,000 inhabitants",
approved May 12, 1905, as amended.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/19-203
(40 ILCS 5/19-203) (from Ch. 108 1/2, par. 19-203)
Sec. 19-203.
Ineligibility for benefits.
Notwithstanding any other provision of this Division, none of the
benefits herein provided for shall be paid to any person who is convicted
of any felony relating to or arising out of or in connection with his
service as an employe.
This section shall not operate to impair any contract or vested right
acquired prior to July 11, 1955, under "The 1905 Act" nor to preclude the
right to a refund.
All future entrants shall be deemed to have consented to the provisions
of this section as a condition of coverage.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/19-204
(40 ILCS 5/19-204) (from Ch. 108 1/2, par. 19-204)
Sec. 19-204.
"Employe" defined - Withdrawals regulated.
The term "employe" under this Division shall include all persons in the
employ of the public library board prior to July 8, 1955, receiving a
stipulated salary per annum; all persons in the employ of the board of
trustees of such Public Library Employes' Pension Fund, prior to July 8,
1955, receiving a stipulated salary; all persons who are contributors to
this fund and have contributed to this fund for a period of at least 1 year
and who may be transferred to any other department of the city or board of
education by reason of the fact that the functions performed by such
persons have been transferred from the jurisdiction of the library board to
that of such other department of the city or board of education; and this
Division shall apply only to those employes who voluntarily accept and
agree to comply with its provisions.
Any employe, a part of whose salary may be set apart to provide for such
fund may be released from the necessity of making further payments to said
fund by filing a written notice of his or her desire to withdraw from
complying with the provisions of this Division with the board of trustees
hereinafter mentioned, which resignation shall operate and go into effect
immediately upon its receipt by said board of trustees.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/19-205
(40 ILCS 5/19-205) (from Ch. 108 1/2, par. 19-205)
Sec. 19-205.
Custodian of fund - Bond - Filing - Breach.
The city treasurer subject to the control and direction of the board of
trustees hereinafter mentioned, shall be the custodian of said pension
fund, and shall secure and safely keep the same and shall keep books and
accounts concerning said fund, in such manner as may be prescribed by the
said board of trustees, which said books and accounts shall always be
subject to the inspection of said board of trustees, or any member thereof.
The city treasurer shall, within 10 days after his election or
appointment, execute a bond to the city, with good and sufficient sureties,
in such penal sum as the said board of trustees shall direct, which said
bond shall be approved by the said board of trustees, and shall be
conditioned for the faithful performance of the duties of said office, and
that he will safely keep and well and truly account for all moneys
belonging to said pension fund, and all interest thereon, which may come
into his hands as such treasurer, and that upon the expiration of his term
of office, or upon his retirement therefrom for any cause, he will
surrender and deliver over to his successor all unexpended moneys, with
such interest as he may have received thereon, and all property which may
have come into his hands as treasurer of said pension fund. Such bonds
shall be filed in the office of the city clerk of said city, and in case of
a breach of the same, or the conditions thereof, suit may be brought on the
same in the name of the said city for the use of said board of trustees, or
any person or persons injured by such breach.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/19-206
(40 ILCS 5/19-206) (from Ch. 108 1/2, par. 19-206)
Sec. 19-206.
Trustees of fund - Powers and duties.
The board of directors of such library shall, in the month of September,
immediately following the passage of "The 1905 Act", arrange for the
election of a board of trustees of said pension fund composed of 5 members,
to be chosen as hereinafter provided, which election shall be held not
later than October 31st of the same year. Said board of trustees shall have
power, and it shall be its duty to administer said fund and to carry out
the provisions of this Division, and for the purpose of enabling such board
of trustees to perform the duties imposed and exercise the powers created
by this Division, the board of trustees shall be and is hereby declared to
be a body politic and corporate.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/19-207
(40 ILCS 5/19-207) (from Ch. 108 1/2, par. 19-207)
Sec. 19-207.
Trustees - How constituted - Election.
The said board of trustees shall consist of the president and secretary
of the board of directors of such public library, 2 employes contributing
to said fund and 1 other member of said board of directors. The president
and secretary of such board of directors shall be ex-officio members of
such board of trustees. The 3 other members of such board of trustees shall
be elected by ballot by the employes contributing to said fund at the time
and for the terms, respectively, as follows: At the first election the
contributors to said fund shall elect 1 of their number to serve for the
term of 1 year and 1 of their number to serve for the term of 2 years and
annually thereafter said contributors shall elect 1 of their number to hold
office for the term of 2 years. At each election the contributors shall
elect a member of the board of directors of such public library to serve as
a member of such board of trustees for a term of 1 year.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/19-208
(40 ILCS 5/19-208) (from Ch. 108 1/2, par. 19-208)
Sec. 19-208.
Trustees - Vacancy - Powers and duties.
Whenever any elective member of the board of trustees shall cease to be
in the employ of or to be a member of said board of directors of such
public library, his or her membership in said board of trustees shall
cease.
Said board of trustees shall have power and it shall be its duty:
(1) To determine the amount which shall be deducted from the salaries or
wages paid to employees for the benefit of said pension fund: Provided, the
amount of such deduction shall not be less than the equivalent of 6% of the
salary or wages of such employe.
(2) To make all payments from said pension fund pursuant to the
provisions of this Division.
(3) To administer and invest in its discretion any part of the said
pension fund remaining in the hands of said treasurer.
(4) To pay all necessary expenses in connection with the administration
of said fund and in carrying out the provisions of this Division for which
provision is not otherwise made.
(5) To determine the amount to be paid as benefits or annuities under
this act and to increase or reduce the same in its discretion: Provided,
that the amount paid as benefit or annuity shall not be increased or
reduced after a contributor has become an annuitant.
(6) To take by gift, grant or bequest, or otherwise, any money or
property of any kind and hold the same for the benefit of said fund.
(7) To purchase, hold, sell or assign and transfer any of the securities
in which said fund or any part thereof may be invested, subject to the
approval of the board of directors of such public library.
(8) To exempt any of said employes from the operation of this Division,
whenever in its judgment the interests of said fund shall render such
exemption necessary and advisable.
(9) To fill any vacancy or vacancies in said board of trustees until the
next annual election, as hereinbefore provided.
(10) To make and establish all such rules for the transaction of its
business and such other rules, regulations and by-laws as may be necessary
for the proper administration of said fund committed to its charge, and the
performance of the duties imposed upon it.
(11) It shall keep full and complete records of its meetings and of the
receipts and disbursements on account of such fund, and also complete lists
of all contributors to said fund, and of all annuitants receiving benefits
therefrom, and such other records as in its judgment shall seem necessary,
and shall make and publish annually a full and complete statement of its
financial transactions.
(12) Said board shall hear and determine all applications for benefits
under this Division, and shall have power to suspend any annuity whenever
the annuitant becomes actively employed by another public body within the
State of Illinois; whenever, in its judgment, the disability of such
beneficiary has ceased; or for other good cause.
(13) To compromise, settle or liquidate any claim against said fund, by
surrendering the contribution or contributions of any individual or
individuals, and make the necessary rules, prescribing the terms under
which such settlements may be made, providing there shall be no rule
allowing restitution of deductions from salaries after the contributor
shall have become eligible to an annuity under this Division.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/19-209
(40 ILCS 5/19-209) (from Ch. 108 1/2, par. 19-209)
Sec. 19-209.
Beneficiaries of fund.
Any employe who shall have attained the age of 55 years, and shall have
been an employe for a period of 10 years, and shall have contributed to
said fund for the same period, shall have the right to retire and become a
beneficiary under this Division, and to receive such benefit or annuity
from said fund as shall be determined by said board of trustees, which said
benefit or annuity shall be proportionate to the scale of pensions
enumerated in Section 19-211 of this Division.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/19-210
(40 ILCS 5/19-210) (from Ch. 108 1/2, par. 19-210)
Sec. 19-210.
Benefit to widow, next of kin, designated beneficiary, or
estate. Upon the death of any contributor or pensioner, the board of trustees
shall pay an amount equal to a refund of contributions as provided in
Section 19-215 of this Division: (a) to the widow of such deceased
contributor or pensioner, or (b) if there be no widow then to the
children, under the age of 18, of such deceased contributor or
pensioner, share and share alike, or (c) if there be no widow or
children under the age of 18, such amount may be paid to a beneficiary
designated in writing to the board of trustees by such contributor or
pensioner, or (d) if there be no widow, or children under the age of 18,
or designated beneficiary, or if there be a beneficiary designated and
such beneficiary shall predecease the contributor or pensioner, then
such sum shall be paid to the executor or administrator of the estate of
such deceased person provided, that if the estate of such contributor or
pensioner shall come within the provisions of Article XXV of the Probate
Act of 1975, as amended, such amount may be paid out under
the provisions of said Article; and further provided, that wherever any
benefits have been paid to a contributor or pensioner during his life
time, the amount paid under this section shall be decreased by the total
amount previously paid to such contributor or pensioner.
(Source: P.A. 81-264.)
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40 ILCS 5/19-211
(40 ILCS 5/19-211) (from Ch. 108 1/2, par. 19-211)
Sec. 19-211.
Annuitants - Retirement from service - Notice - Amount of
pension. Any person who has been an employe for a period of 20 years or more
who shall have attained the age of 50 years, and is a contributor to said fund,
and shall have contributed to said fund for the same period, may retire
upon 60 days' notice to be given to said board of trustees unless such
notice is waived by said board of trustees, and become an annuitant under
this act and be entitled to a monthly pension of $60. Provided, that for
every additional full year of service after 20 years rendered before such
retirement, an increase of $7 per month shall be added to the monthly
pension allowed until the maximum of $200 per month shall have been
attained; And, provided further, that no pension shall exceed 60% of the
maximum annual salary received during the employe's term of service.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/19-212
(40 ILCS 5/19-212) (from Ch. 108 1/2, par. 19-212)
Sec. 19-212.
Amount of pension - "Average monthly salary" defined.
Any employee who is contributing and has contributed to this fund for 20
or more full years, who shall have attained the age of 60 or more years may
retire and in lieu of the pension otherwise herein provided, and at his
option, receive a monthly pension equal to 1 2/3% of such contributor's
average monthly salary for each full year of service. Provided that for any
contributor who retires under the age of 60, who has attained the age of 55
or more years and has contributed to this fund for 20 or more full years,
the amount of pension under this section shall be reduced by 1/2 of 1% per
month for each month such contributor lacks of attainment of age 60; and
provided further that in no case shall the pension exceed 60% of said
contributor's average monthly salary.
Average monthly salary is defined as the highest average monthly salary
for any 5 consecutive years in the last 10 years of service of such
contributor.
(Source: Laws 1963, p. 2034.)
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40 ILCS 5/19-213
(40 ILCS 5/19-213) (from Ch. 108 1/2, par. 19-213)
Sec. 19-213.
Beneficiaries to file statement of intent - right to become
beneficiary. Every person who is in the employ of the board of directors of
such library when "The 1905 Act" goes into effect and who intends to become a
beneficiary of the pension fund created thereby shall, on or before the
15th day of November succeeding the election of said board of trustees,
file a statement of such intent with said board upon blanks prepared for
that purpose. Every person who becomes an employe, after "The 1905 Act" has
taken effect and who intends to become a beneficiary under "The 1905 Act"
or this Division shall within 6 months after such entry file a statement of
such intent with said board of trustees upon blanks prepared for that purpose.
Provided that after July 16, 1941, employes of the board of trustees of
such Public Library Employes' Pension Fund, who become eligible to
participate in the benefits of said fund shall have the right, upon filing
a statement of intent with the board of trustees, to become a beneficiary
of such pension fund, to contribute to such pension fund an amount
equivalent to the contributions which would have been paid to that date had
the person become a contributor at the time "The 1905 Act" became effective
or became a contributor at the date of his entry into the service of the
board of trustees of the Public Library Employes' Pension Fund, and to be
credited with length of service for the period for which contributions
shall have been paid.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/19-214
(40 ILCS 5/19-214) (from Ch. 108 1/2, par. 19-214)
Sec. 19-214.
Retirement for disability - Notice - Annuity.
Any person who has contributed to said fund for a period for 10 years or
more may retire on account of serious disability, rendering him or her
unable to properly discharge his or her duties, upon 90 days' notice to be
given to said board of trustees (unless such notice is waived by said board
of trustees) and may become an annuitant under this Division, and shall
thereupon be entitled to receive for a period of 2 years (which may be
extended upon proof of continued disability) such part of the annuity then
allowed under the rules of said trustees, as said trustees may determine.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/19-215
(40 ILCS 5/19-215) (from Ch. 108 1/2, par. 19-215)
Sec. 19-215.
Dismissals and resignations - Refund plus
interest - Reinstatement of credit in fund.
Any employe who has been contributing to said fund, and who shall be
dismissed or resign may, upon application receive the total amount paid
into said fund by such person so dismissed or resigning plus interest at
the rate of 4% per annum to the date of such dismissal or resignation;
provided, however, that no interest shall accrue or shall be paid on such
amount in the case of any person becoming an employe and a contributor to
this fund on or after July 21, 1947.
Any present contributor to this fund who shall have received a refund of
prior contributions from this fund may at any time prior to July 1, 1959,
repay to this fund the amount of such refund together with interest at four
per cent per annum from the date of refund to the date of repayment, and
credit for such length of service shall be restored.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/19-216
(40 ILCS 5/19-216) (from Ch. 108 1/2, par. 19-216)
Sec. 19-216.
Retirement Systems Reciprocal Act.
The "Retirement Systems Reciprocal Act", being Article 20 of this Code,
is hereby adopted and made part of this Division. Provided, that where
there is a direct conflict between the provisions of such act and the
specific provisions of this Division, such latter provisions shall prevail.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/19-217
(40 ILCS 5/19-217) (from Ch. 108 1/2, par. 19-217)
Sec. 19-217.
Monthly reports to treasurer of fund.
The president and secretary of the public library board shall certify
monthly to the treasurer all amounts deducted in accordance with the
provisions of this Division from the salaries paid by the public library
board, which amounts, as well as all other sums contributed to said fund
under the provisions of this Division, shall be set apart and held by said
treasurer for the purpose hereinbefore specified, subject to the order of
said board of trustees, and shall be paid out upon warrants signed by the
president and secretary of said board of trustees.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/19-218
(40 ILCS 5/19-218) (from Ch. 108 1/2, par. 19-218)
Sec. 19-218.
Annuities exempt from execution - Assignments prohibited.
All annuities granted under the provisions of "The 1905 Act" or this
Division shall be exempt from attachment and garnishment process, and no
annuitant shall have the right to transfer or assign his or her annuity,
either by way of mortgage or otherwise.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/19-219
(40 ILCS 5/19-219) (from Ch. 108 1/2, par. 19-219)
Sec. 19-219.
Interference with enforcement of division - Penalty.
Any person who shall, directly or indirectly, avoid or seek to avoid any
or all the provisions of this Division, or who shall, directly or
indirectly, interfere with, or obstruct the enforcement of any of the
provisions of this Division, shall be guilty of a Class B misdemeanor.
(Source: P.A. 77-2560.)
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40 ILCS 5/19-220
(40 ILCS 5/19-220) (from Ch. 108 1/2, par. 19-220)
Sec. 19-220.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Division as though such provisions were fully set forth in this Division as
a part thereof.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/19-221
(40 ILCS 5/19-221) (from Ch. 108 1/2, par. 19-221)
Sec. 19-221.
Public Library Employes' Pension Fund superseded.
Any Public Library Employes' Pension Fund in operation on December 31,
1965, in a city having a population exceeding 500,000 inhabitants, by
virtue of and under the provisions of this Article 19, Division 2, Sec.
19-201 to 19-220, both inclusive, of the "Illinois Pension Code" approved
March 18, 1963, shall be superseded by and merged, effective and as of
January 1, 1966, into the fund in operation in such city for municipal
employees on such date under the provisions of and by virtue of Article 8,
Section 8-101 to 8-253, both inclusive, of the "Illinois Pension Code"
approved March 18, 1963, as amended.
On such January 1, 1966, or as soon as possible and practicable
thereafter, all monies, securities, assets, records, and other property of
such public library employes' pension fund shall be transferred by the
board of trustees of such fund to the custody and ownership of the
retirement board of the annuity and benefit fund, in operation in such city
under and by virtue of the provisions of the aforementioned Article 8 of
the "Illinois Pension Code", and such public library employes' pension fund
shall thereupon cease to exist as a separate fund.
The retirement board of the fund into which said public library
employes' pension fund is to be merged, shall assume all of the liabilities
of such superseded fund, and all pensions, refunds and benefits allowed by
the board of trustees of the superseded fund prior to January 1, 1966
shall, from and after such date, be paid by the retirement board according
to the law under which they were allowed, and all claims for any pension,
refund, or benefit accrued or pending prior to January 1, 1966 under such
superseded fund, shall be allowed or refused by the retirement board in
accordance with the law then applicable thereto, and if allowed shall be
paid from the fund superseding the public library employes' pension fund.
(Source: Laws 1965, p. 2326.)
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40 ILCS 5/Art. 20
(40 ILCS 5/Art. 20 heading)
ARTICLE 20.
RETIREMENT SYSTEMS RECIPROCAL ACT
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40 ILCS 5/20-101
(40 ILCS 5/20-101) (from Ch. 108 1/2, par. 20-101)
Sec. 20-101.
Continuity and preservation of pension credits.
There is established a plan for the continuity and preservation of
pension credit, in accordance with the provisions hereof, in the case of
employees transferring employment from one governmental unit to another.
The purpose of this plan is to assure full and continuous pension credit
for all service in public employment which is covered by a retirement
system.
The acceptance of the provisions of this Article, shall be optional with
the employee, or in the event of his death, with his survivor; however, the
provisions of Section 20-120 shall be applicable to every person who applies
for benefits from 2 or more retirement systems covered by this Article.
(Source: P.A. 77-531.)
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40 ILCS 5/20-102
(40 ILCS 5/20-102) (from Ch. 108 1/2, par. 20-102)
Sec. 20-102.
Terms defined.
The terms as used in this Article, shall have the meanings ascribed to
them in Sections 20-103 to 20-113, inclusive, except when the context
otherwise requires.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/20-103
(40 ILCS 5/20-103) (from Ch. 108 1/2, par. 20-103)
Sec. 20-103.
Effective date.
"Effective date": July 1, 1955, or in the case of any retirement system
becoming subject to the provisions of "The 1955 Act" or this Article
after such date, the date when such retirement system comes under the
provisions of "The 1955 Act" or this Article.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/20-104
(40 ILCS 5/20-104) (from Ch. 108 1/2, par. 20-104)
Sec. 20-104.
Employee.
"Employee": Any person in the service of an employer on or after the
effective date, who has pension credit because of service previous or
subsequent to the effective date, who is an active or inactive member or
participant of a retirement system.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/20-105
(40 ILCS 5/20-105) (from Ch. 108 1/2, par. 20-105)
Sec. 20-105.
Employer.
"Employer": The State of Illinois, any agency or instrumentality
thereof, or any governmental unit in the State.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/20-106
(40 ILCS 5/20-106) (from Ch. 108 1/2, par. 20-106)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-106. Final average salary.
(a) "Final average salary": The average (or other) salary which is
considered by a participating system in determining the amount of the
retirement annuity or survivor's annuity.
(b) Earnings credits under all participating systems shall be
considered by each system in determining final average salary, but subject to the limitations imposed by this amendatory Act of the 98th General Assembly for a participant in a defined contribution plan established under Article 2, 14, 15, or 16 of this Code. In
calculating a proportional retirement or survivor's annuity based on these
earnings credits, the participating system shall apply any limitations on
earnings for annuity purposes that are imposed by the Article governing the
system.
(Source: P.A. 98-599, eff. 6-1-14 .) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional) Sec. 20-106.
Final average salary.
(a) "Final average salary": The average (or other) salary which is
considered by a participating system in determining the amount of the
retirement annuity or survivor's annuity.
(b) Earnings credits under all participating systems shall be
considered by each system in determining final average salary. In
calculating a proportional retirement or survivor's annuity based on these
earnings credits, the participating system shall apply any limitations on
earnings for annuity purposes that are imposed by the Article governing the
system.
(Source: P.A. 88-593, eff. 8-22-94.)
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40 ILCS 5/20-107
(40 ILCS 5/20-107) (from Ch. 108 1/2, par. 20-107)
Sec. 20-107.
Governmental unit.
"Governmental unit": The State of Illinois or any agency or
instrumentality thereof, or any political subdivision or municipal
corporation in the State, which maintains a retirement system for the
benefit of its employees.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/20-108
(40 ILCS 5/20-108) (from Ch. 108 1/2, par. 20-108)
Sec. 20-108.
Participating system.
"Participating system": Any retirement system to which "The 1955 Act"
or this Article applies.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/20-109
(40 ILCS 5/20-109) (from Ch. 108 1/2, par. 20-109)
Sec. 20-109. "Pension credit": Credit or equities acquired by an
employee in the form of contributions, earnings or service as defined
under the law governing each of the systems in which he has credits or
equities, except credits and equities (1) of less than one year in any
one system, except that this one-year limitation shall not apply to
(A) employees who transfer or are transferred, as a class, from one
participating system to another or who are persons to whom Section
14-108.2a or 14-108.2b applies or (B) persons who move from participation with a school district as a teacher aide under Article 7 to participation under Article 16; or (2) which have previously been
forfeited by acceptance of a refund or which have been applied towards a
retirement annuity and have not been reestablished in accordance with the
law governing the system from which the refund or retirement annuity had
been received. If a retirement system provides no refund of contributions,
the pension credit in the case of any employee who has participated in that
system shall be considered effective for the purposes of this Article.
(Source: P.A. 94-834, eff. 6-6-06.)
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40 ILCS 5/20-110
(40 ILCS 5/20-110) (from Ch. 108 1/2, par. 20-110)
Sec. 20-110.
Retirement annuity.
"Retirement annuity": Any pension, retirement allowance, retirement
annuity, disability pension, disability retirement allowance or disability
retirement annuity, and an annuity payable on account of retirement for
age, years of service or total and permanent disability.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/20-111
(40 ILCS 5/20-111) (from Ch. 108 1/2, par. 20-111)
Sec. 20-111.
Retirement system.
"Retirement system": Any retirement system or pension fund which has
been created by statute and which is financed in whole or in part by
contributions by the State or by any governmental unit of the State or any
municipality of the State.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/20-112
(40 ILCS 5/20-112) (from Ch. 108 1/2, par. 20-112)
Sec. 20-112.
Survivor's annuity.
"Survivor's annuity": Payments by a system which are made to the widow
or survivors of an employee or participant in the form of a pension or
annuity or a lump sum which, under the provisions of the law governing such
system, is considered as a widow's or survivor's benefit, or a lump sum
which is made in lieu of a pension or annuity which would otherwise be
payable to the widow or survivor.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/20-113
(40 ILCS 5/20-113) (from Ch. 108 1/2, par. 20-113)
Sec. 20-113.
The 1955 Act.
"The 1955 Act": The "Retirement Systems Reciprocal Act" approved July
11, 1955, as amended.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/20-114
(40 ILCS 5/20-114) (from Ch. 108 1/2, par. 20-114)
Sec. 20-114.
Benefits covered by this article.
The provisions of this Article shall be applicable and limited only to a
retirement annuity and survivor's annuity, and to the pension credit
established for such purposes. Any death benefit, ordinary disability
benefit, duty disability benefit, accidental disability benefit,
supplemental annuity, or any other type of annuity or benefit provided by
any retirement system, not included in the definition of retirement annuity
and survivor's annuity shall not be affected by the provisions except as
provided in Section 20-124.
(Source: P.A. 76-744.)
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40 ILCS 5/20-115
(40 ILCS 5/20-115) (from Ch. 108 1/2, par. 20-115)
Sec. 20-115.
Eligibility for a proportional annuity.
Any person who has
pension credit in 2 or more participating systems shall be entitled to a
proportional retirement annuity, and his survivors shall be entitled to a
survivors annuity in accordance with the provisions of this Article, if his
combined pension credit is at least equal to the longest minimum qualifying
period prescribed by any of such systems. The qualifying period of each of
these systems shall be that which was in effect on the date of the employee's
latest withdrawal from service covered by any of these systems.
Each participating system shall, in determining eligibility for a
proportional retirement annuity or survivors annuity, consider the combined
service and contributions of the employee for which pension credit has been
granted under all participating systems. If the law
governing a participating system provides that a retirement or survivors
annuity shall be payable only if the annuity exceeds a certain dollar
minimum, the proportional annuity provided by pension credits under all
participating systems shall be considered in determining whether this
requirement has been met.
(Source: P.A. 85-1209.)
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40 ILCS 5/20-116
(40 ILCS 5/20-116) (from Ch. 108 1/2, par. 20-116)
Sec. 20-116.
Minimum qualifying age - Deferred payments.
If the minimum qualifying age in any of the participating systems is
lower than the minimum qualifying age in any other participating system
which is to provide a proportional retirement annuity, or proportional
survivor's annuity, payments by such other system shall be deferred until
the employee or survivor has attained the minimum qualifying age prescribed
for such system.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/20-117
(40 ILCS 5/20-117) (from Ch. 108 1/2, par. 20-117)
Sec. 20-117.
Vesting of pension credit - Combined pension credit under all
participating systems. If the vesting of pension credit in any
participating system for a retirement annuity or survivor's annuity is
based upon length of service, the combined service under all participating
systems shall be considered in establishing such vesting of pension credit.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/20-118
(40 ILCS 5/20-118) (from Ch. 108 1/2, par. 20-118)
Sec. 20-118.
Waiver of pension credits - Reinstatement.
Any employee who shall have waived, by the acceptance of a refund, his
pension credit in any participating system, may have his pension credit
reinstated by repayment of the refund, including interest from the date of
refund to the date of repayment, provided (1) the system is authorized by
law to receive the repayment, and (2) the employee has completed at least 2
years of service under a participating system subsequent to the date of the
last refund. Each system shall consider pension credits under all
participating systems in determining whether the employee meets the service
requirements under that system for repayment of a refund. The repayment of
a refund under this section shall not be considered as an election to
accept the provisions of the other sections of this Article.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/20-119
(40 ILCS 5/20-119) (from Ch. 108 1/2, par. 20-119)
Sec. 20-119.
Concurrent employment.
Any employee who is concurrently
employed by employers under 2 or more participating systems is entitled to
establish pension credit in accordance with the provisions of each system.
If the concurrent employment results in duplication of credits, each of
the systems shall reduce the service credit for the period of concurrent
employment to its full-time equivalent, using as a basis for this
adjustment, the earnings credited for each employment. However, no such
reduction in service credit shall be applied for the purpose of meeting
the one-year minimum service requirement in item (1) of Section 20-109,
except as provided in Section 20-120.
Combined earnings credits shall be limited to the earnings credits which
would have been established by full-time employment with the employer from
which the employee was receiving the highest salary.
Seasonal employment covered by a retirement system during a period for
which credit has been granted in another retirement system is concurrent
employment within the meaning of this Section and no adjustment of the
credits for seasonal employment is required, unless it results in a
duplication of pension credits. If seasonal employment results in a
duplication of credits, it shall be adjusted in accordance with Section
20-120.
(Source: P.A. 87-794.)
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40 ILCS 5/20-120
(40 ILCS 5/20-120) (from Ch. 108 1/2, par. 20-120)
Sec. 20-120.
Duplication of pension credits.
In no event shall pension credit for the same service rendered by an
employee be accredited in more than one participating system. If employment
is covered by more than one participating system, pension credit shall be
granted by that system which was first authorized to grant the credit, or
if more than one participating system was authorized to grant credit at the
same time, the employee shall elect, prior to retirement, the system under
which credit shall be granted. The participating system under which pension
credit is forfeited because of the application of this section, shall
refund to the employee, the contributions for the period of service
forfeited.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/20-121
(40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-121. Calculation of proportional retirement annuities. (a) Upon
retirement of the employee, a proportional retirement annuity shall be computed
by each participating system in which pension credit has been established on
the basis of pension credits under each system. The computation shall be in
accordance with the formula or method prescribed by each participating system
which is in effect at the date of the employee's latest withdrawal from service
covered by any of the systems in which he has pension credits which he elects
to have considered under this Article. However, the amount of any retirement
annuity payable under the self-managed plan established under Section 15-158.2
of this Code or under the defined contribution plan established under Article 2, 14, 15, or 16 of this Code depends solely on the value of the participant's vested account
balances and is not subject to any proportional adjustment under this
Section.
(a-5) For persons who participate in a defined contribution plan established under Article 2, 14, 15, or 16 of this Code to whom the provisions of this Article apply, the pension credits established under the defined contribution plan may be considered in
determining eligibility for or the amount of the defined benefit retirement annuity that is
payable by any other participating system. (b) Combined pension credit under all retirement systems subject to this
Article shall be considered in determining whether the minimum qualification
has been met and the formula or method of computation which shall be applied, except as may be otherwise provided with respect to vesting in State or employer contributions in a defined contribution plan.
If a system has a step-rate formula for calculation of the retirement annuity,
pension credits covering previous service which have been established under
another system shall be considered in determining which range or ranges of
the step-rate formula are to be applicable to the employee.
(c) Interest on pension credit shall continue to accumulate in accordance with
the provisions of the law governing the retirement system in which the same
has been established during the time an employee is in the service of another
employer, on the assumption such employee, for interest purposes for pension
credit, is continuing in the service covered by such retirement system.
(Source: P.A. 98-599, eff. 6-1-14 .) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-121.
Calculation of proportional retirement annuities.
Upon
retirement of the employee, a proportional retirement annuity shall be computed
by each participating system in which pension credit has been established on
the basis of pension credits under each system. The computation shall be in
accordance with the formula or method prescribed by each participating system
which is in effect at the date of the employee's latest withdrawal from service
covered by any of the systems in which he has pension credits which he elects
to have considered under this Article. However, the amount of any retirement
annuity payable under the self-managed plan established under Section 15-158.2
of this Code depends solely on the value of the participant's vested account
balances and is not subject to any proportional adjustment under this
Section.
Combined pension credit under all retirement systems subject to this
Article shall be considered in determining whether the minimum qualification
has been met and the formula or method of computation which shall be applied.
If a system has a step-rate formula for calculation of the retirement annuity,
pension credits covering previous service which have been established under
another system shall be considered in determining which range or ranges of
the step-rate formula are to be applicable to the employee.
Interest on pension credit shall continue to accumulate in accordance with
the provisions of the law governing the retirement system in which the same
has been established during the time an employee is in the service of another
employer, on the assumption such employee, for interest purposes for pension
credit, is continuing in the service covered by such retirement system.
(Source: P.A. 91-887, eff. 7-6-00.)
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40 ILCS 5/20-123
(40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-123. Survivor's annuity. The provisions governing a retirement
annuity shall be applicable to a survivor's annuity. Appropriate credits shall
be established for survivor's annuity purposes in those participating systems
which provide survivor's annuities, according to the same conditions and
subject to the same limitations and restrictions herein prescribed for a
retirement annuity. If a participating system has no survivor's annuity
benefit, or if the survivor's annuity benefit under that system is waived,
pension credit established in that system shall not be considered
in determining eligibility for or the amount of the survivor's annuity which
may be payable by any other participating system.
For persons who participate in the self-managed plan established under
Section 15-158.2 or the portable benefit package established under Section
15-136.4, pension credit established under Article 15 may be considered in
determining eligibility for or the amount of the survivor's annuity that is
payable by any other participating system, but pension credit established in
any other system shall not result in any right to a survivor's annuity under
the Article 15 system.
For persons who participate in a defined contribution plan established under Article 2, 14, 15, or 16 of this Code to whom the provisions of this Article apply, the pension credits established under the defined contribution plan may be considered in
determining eligibility for or the amount of the defined benefit survivor's annuity that is
payable by any other participating system, but pension credits established in
any other system shall not result in any right to or increase in the value of a survivor's annuity under
the defined contribution plan, which depends solely on the options chosen and the value of the participant's vested account
balances and is not subject to any proportional adjustment under this
Section. (Source: P.A. 98-599, eff. 6-1-14 .) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-123.
Survivor's annuity.
The provisions governing a retirement
annuity shall be applicable to a survivor's annuity. Appropriate credits shall
be established for survivor's annuity purposes in those participating systems
which provide survivor's annuities, according to the same conditions and
subject to the same limitations and restrictions herein prescribed for a
retirement annuity. If a participating system has no survivor's annuity
benefit, or if the survivor's annuity benefit under that system is waived,
pension credit established in that system shall not be considered
in determining eligibility for or the amount of the survivor's annuity which
may be payable by any other participating system.
For persons who participate in the self-managed plan established under
Section 15-158.2 or the portable benefit package established under Section
15-136.4, pension credit established under Article 15 may be considered in
determining eligibility for or the amount of the survivor's annuity that is
payable by any other participating system, but pension credit established in
any other system shall not result in any right to a survivor's annuity under
the Article 15 system.
(Source: P.A. 91-887, eff. 7-6-00.)
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40 ILCS 5/20-124
(40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-124. Maximum benefits. (a) In no event shall the combined retirement
or survivors annuities exceed the highest annuity which would have been payable
by any participating system in which the employee has pension credits, if all
of his pension credits had been validated in that system.
If the combined annuities should exceed the highest maximum as determined
in accordance with this Section, the respective annuities shall be reduced
proportionately according to the ratio which the amount of each proportional
annuity bears to the aggregate of all such annuities.
(b) In the case of a participant in the self-managed plan established under
Section 15-158.2 of this Code to whom the provisions of this Article apply:
(i) For purposes of calculating the combined | | retirement annuity and the proportionate reduction, if any, in a retirement annuity other than one payable under the self-managed plan, the amount of the Article 15 retirement annuity shall be deemed to be the highest annuity to which the annuitant would have been entitled if he or she had participated in the traditional benefit package as defined in Section 15-103.1 rather than the self-managed plan.
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(ii) For purposes of calculating the combined
| | survivor's annuity and the proportionate reduction, if any, in a survivor's annuity other than one payable under the self-managed plan, the amount of the Article 15 survivor's annuity shall be deemed to be the highest survivor's annuity to which the survivor would have been entitled if the deceased employee had participated in the traditional benefit package as defined in Section 15-103.1 rather than the self-managed plan.
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(iii) Benefits payable under the self-managed plan
| | are not subject to proportionate reduction under this Section.
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(c) In the case of a participant in a defined contribution plan established under
Article 2, 14, 15, or 16 of this Code to whom the provisions of this Article apply:
(i) For purposes of calculating the combined
| | retirement annuity and the proportionate reduction, if any, in a defined benefit retirement annuity, any benefit payable under the defined contribution plan shall not be considered.
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| (ii) For purposes of calculating the combined
| | survivor's annuity and the proportionate reduction, if any, in a defined benefit survivor's annuity, any benefit payable under the defined contribution plan shall not be considered.
|
| (iii) Benefits payable under a defined contribution
| | plan established under Article 2, 14, 15, or 16 of this Code are not subject to proportionate reduction under this Section.
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| (Source: P.A. 98-599, eff. 6-1-14 .)
(Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-124.
Maximum benefits.
In no event shall the combined retirement
or survivors annuities exceed the highest annuity which would have been payable
by any participating system in which the employee has pension credits, if all
of his pension credits had been validated in that system.
If the combined annuities should exceed the highest maximum as determined
in accordance with this Section, the respective annuities shall be reduced
proportionately according to the ratio which the amount of each proportional
annuity bears to the aggregate of all such annuities.
In the case of a participant in the self-managed plan established under
Section 15-158.2 of this Code to whom the provisions of this Article apply:
(i) For purposes of calculating the combined
| | retirement annuity and the proportionate reduction, if any, in a retirement annuity other than one payable under the self-managed plan, the amount of the Article 15 retirement annuity shall be deemed to be the highest annuity to which the annuitant would have been entitled if he or she had participated in the traditional benefit package as defined in Section 15-103.1 rather than the self-managed plan.
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(ii) For purposes of calculating the combined
| | survivor's annuity and the proportionate reduction, if any, in a survivor's annuity other than one payable under the self-managed plan, the amount of the Article 15 survivor's annuity shall be deemed to be the highest survivor's annuity to which the survivor would have been entitled if the deceased employee had participated in the traditional benefit package as defined in Section 15-103.1 rather than the self-managed plan.
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(iii) Benefits payable under the self-managed plan
| | are not subject to proportionate reduction under this Section.
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(Source: P.A. 91-887, eff. 7-6-00.)
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40 ILCS 5/20-125
(40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-125. Return to employment - suspension of benefits. If a retired
employee returns to employment which is covered by a system from which he is
receiving a proportional annuity under this Article, his proportional annuity
from all participating systems shall be suspended during the period of
re-employment, except that this suspension does not apply to any
distributions payable under the self-managed plan established under Section
15-158.2 or under a defined contribution plan established under Article 2, 14, 15, or 16 of this Code.
The provisions of the Article under which such employment would be
covered shall govern the determination of whether the employee has returned
to employment, and if applicable the exemption of temporary employment or
employment not exceeding a specified duration or frequency, for all
participating systems from which the retired employee is receiving a
proportional annuity under this Article, notwithstanding any contrary
provisions in the other Articles governing such systems.
(Source: P.A. 98-599, eff. 6-1-14 .) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 20-125.
Return to employment - suspension of benefits.
If a retired
employee returns to employment which is covered by a system from which he is
receiving a proportional annuity under this Article, his proportional annuity
from all participating systems shall be suspended during the period of
re-employment, except that this suspension does not apply to any
distributions payable under the self-managed plan established under Section
15-158.2 of this Code.
The provisions of the Article under which such employment would be
covered shall govern the determination of whether the employee has returned
to employment, and if applicable the exemption of temporary employment or
employment not exceeding a specified duration or frequency, for all
participating systems from which the retired employee is receiving a
proportional annuity under this Article, notwithstanding any contrary
provisions in the other Articles governing such systems.
(Source: P.A. 91-887, eff. 7-6-00.)
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40 ILCS 5/20-126
(40 ILCS 5/20-126) (from Ch. 108 1/2, par. 20-126)
Sec. 20-126.
Responsibility of participating systems.
Each
participating system shall submit to the other participating systems,
upon request, a report, properly certified, regarding the
pension credits of each employee and any other pertinent information which may be
necessary for proper administration of this Article.
(Source: P.A. 79-782.)
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40 ILCS 5/20-127
(40 ILCS 5/20-127) (from Ch. 108 1/2, par. 20-127)
Sec. 20-127.
Responsibility of employee.
It shall be the duty and responsibility of an employee having pension
credit in any participating system to make available such information or
any other required data relating thereto, to the participating systems in
which he has pension credits, in order that the pension credit may be
applied in the manner herein provided. A participating system shall be
under no obligation or responsibility to initiate any inquiry or
investigation for the purpose of establishing pension credit in the case of
any employee, in the absence of a request from the employee, accompanied by
sufficient facts bearing upon the credit.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/20-128
(40 ILCS 5/20-128) (from Ch. 108 1/2, par. 20-128)
Sec. 20-128.
Payment of benefits.
Two or more participating systems may agree to have the combined
benefits paid by one of the systems, in which case, the system which pays
the combined benefit shall receive from the other system, a lump sum
payment equal to the actuarial equivalent of the proportional annuity
determined in accordance with annuity tables which are acceptable to both
systems.
(Source: P.A. 78-779.)
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40 ILCS 5/20-129
(40 ILCS 5/20-129) (from Ch. 108 1/2, par. 20-129)
Sec. 20-129.
Retirement systems covered by article.
This Article shall apply only to those retirement systems which have
accepted it, as specified in the respective divisions or Articles of this
Code governing such systems.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/20-130
(40 ILCS 5/20-130) (from Ch. 108 1/2, par. 20-130)
Sec. 20-130.
Conflict between this Article and the Articles governing
the participating systems. If any of the provisions of this Article are
inconsistent with the provisions of the Article governing any participating
system, the provisions shall, if possible, be interpreted so as to give effect
to the purpose of both Articles; however, if this is not possible, the
provisions of the Article governing the participating system, with the
exception of those covering suspension of benefits upon return to
employment, shall control.
(Source: P.A. 79-782.)
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40 ILCS 5/20-131
(40 ILCS 5/20-131) (from Ch. 108 1/2, par. 20-131)
Sec. 20-131.
Retirement Annuities and Survivors Annuities - Guarantees.
(a) This amendatory Act of 1975 (P.A. 79-782) shall not be applied to
deprive any person or his survivor of eligibility for an annuity or to reduce
the annuity or to deprive such person of rights to which he or his survivor
would have been entitled under the provisions of Article 20 which were in
effect immediately prior to September 5, 1975, if he was an employee
immediately prior to that date.
(b) If the combined retirement annuity benefits provided under Public
Act 79-782 are less than the combined retirement annuity benefits that would
have been payable under the alternative formula of Section 20-122, the system
under which retirement would have occurred, as provided by Section 20-122,
shall increase the proportional retirement annuity by an amount equal to the
difference.
(c) Subsection (b) of this Section does not apply to the retirement
annuity benefits payable under the self-managed plan established under Section
15-158.2 of this Code.
(Source: P.A. 91-887, eff. 7-6-00.)
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40 ILCS 5/20-132
(40 ILCS 5/20-132) (from Ch. 108 1/2, par. 20-132)
Sec. 20-132.
Short title.
This Article shall be known as the "Retirement Systems Reciprocal Act"
and is a continuation of the "Retirement Systems Reciprocal Act", approved
July 11, 1955, as amended.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/20-133
(40 ILCS 5/20-133) (from Ch. 108 1/2, par. 20-133)
Sec. 20-133.
General provisions and savings clause.
The provisions of Article
1 and Article 23 of this Code apply to this Article as though such provisions
were fully set forth in this Article as a part thereof.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/Art. 21
(40 ILCS 5/Art. 21 heading)
ARTICLE 21.
SOCIAL SECURITY ENABLING ACT
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40 ILCS 5/21-101
(40 ILCS 5/21-101) (from Ch. 108 1/2, par. 21-101)
Sec. 21-101.
Name of Act.
This Article shall be known and may be cited
as the "Social Security Enabling Act", and is a continuation of the "Social
Security Enabling Act", approved August 6, 1951, as amended.
(Source: P.A. 84-1028.)
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40 ILCS 5/21-102
(40 ILCS 5/21-102) (from Ch. 108 1/2, par. 21-102)
Sec. 21-102. Terms defined. For the purposes of this Article,
the terms defined in the Section following this Section and preceding Section 21-103 shall have
the meanings ascribed to them, except when the context otherwise
requires.
(Source: P.A. 97-333, eff. 8-12-11.)
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40 ILCS 5/21-102.1
(40 ILCS 5/21-102.1) (from Ch. 108 1/2, par. 21-102.1)
Sec. 21-102.1.
Social Security Act.
"Social Security Act" means the Act of Congress approved August 14, 1935,
Chapter 531, 49 Stat. 620, as heretofore or hereafter amended.
(Source: P.A. 84-1028.)
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40 ILCS 5/21-102.2
(40 ILCS 5/21-102.2) (from Ch. 108 1/2, par. 21-102.2)
Sec. 21-102.2.
Federal Insurance Contributions Act.
"Federal Insurance
Contributions Act" or "FICA" means Subchapters A, B and C of Chapter 21 of
the Federal Internal Revenue Code of 1986, as such Code may from time to
time be amended.
(Source: P.A. 85-442.)
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40 ILCS 5/21-102.3
(40 ILCS 5/21-102.3) (from Ch. 108 1/2, par. 21-102.3)
Sec. 21-102.3.
State Agency.
"State Agency" means the Social Security
Division of the State Employees'
Retirement System of Illinois. The board of trustees of such system shall
serve as the administrative body thereof, but may delegate any of its
functions with respect to the administration of such Division to any
individual.
(Source: P.A. 84-1028.)
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40 ILCS 5/21-102.4
(40 ILCS 5/21-102.4) (from Ch. 108 1/2, par. 21-102.4)
Sec. 21-102.4.
Secretary.
"Secretary" means the Secretary of the
Department of Health and Human Services, or any individual to whom the
Secretary has delegated any of his functions under the Social Security Act
with respect to coverage of employees of States and their political
subdivisions.
(Source: P.A. 84-1028.)
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40 ILCS 5/21-102.5
(40 ILCS 5/21-102.5) (from Ch. 108 1/2, par. 21-102.5)
Sec. 21-102.5.
Federal-State Agreement.
"Federal-State Agreement"
means the agreement between the Secretary and the State of Illinois entered
into by the State Agency on September 15, 1953, as authorized by the Social
Security Enabling Act for the purpose of extending coverage under Title II
of the Social Security Act.
(Source: P.A. 84-1028.)
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40 ILCS 5/21-102.6
(40 ILCS 5/21-102.6) (from Ch. 108 1/2, par. 21-102.6)
Sec. 21-102.6.
Modification to the Federal-State Agreement.
"Modification to the Federal-State Agreement" means an amendment to the
Federal-State Agreement to extend coverage to coverage groups or
additional employee classifications consistent with the provisions of Section
218 of the Social Security Act and this Article.
(Source: P.A. 84-1028.)
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40 ILCS 5/21-102.7
(40 ILCS 5/21-102.7) (from Ch. 108 1/2, par. 21-102.7)
Sec. 21-102.7.
Coverage agreement.
"Coverage agreement" means an
agreement between the State Agency and a coverage group for the purpose of
extending social security coverage to the employees of the coverage group.
Such agreement shall specify the terms, conditions and scope of coverage.
(Source: P.A. 84-1028.)
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40 ILCS 5/21-102.8
(40 ILCS 5/21-102.8) (from Ch. 108 1/2, par. 21-102.8)
Sec. 21-102.8.
Political subdivision.
"Political subdivision" means any of the following:
(a) a city, village, township, incorporated town or county, or a school,
road, library, park, hospital or other local district with general
continuous power to levy taxes on property within such district;
(b) an instrumentality created under the laws of the State of Illinois
which is legally separate and distinct from the State of Illinois, and
which is not an entity included in subdivision (a) of this Section;
(c) a noncorporate public entity created and existing under a contract
or agreement between 2 or more public agencies as provided for in this
Intergovernmental Cooperation Act, or between 2 or more school districts
under The School Code, or between 2 or more governmental entities under any
other Act authorizing intergovernmental cooperation.
(Source: P.A. 84-1028.)
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40 ILCS 5/21-102.9
(40 ILCS 5/21-102.9) (from Ch. 108 1/2, par. 21-102.9)
Sec. 21-102.9.
Retirement system.
"Retirement system" means any annuity, pension or retirement fund or system
established by State law or by action of a political subdivision, except
those applying to municipal firemen and police.
(Source: P.A. 84-1028.)
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40 ILCS 5/21-102.10
(40 ILCS 5/21-102.10) (from Ch. 108 1/2, par. 21-102.10)
Sec. 21-102.10.
Governing body.
"Governing body" means: (a) in cities, the city council; (b)
in villages or incorporated towns, the board of trustees; (c) in townships,
the town clerk for purposes of receiving petitions, the electors for
purposes of the election
of social security coverage, and
the board of town trustees for all other purposes; (d) in other political
subdivisions, the corporate authority, body or officer authorized by law to
levy taxes for the maintenance and operation of the political subdivision;
(e) in political subdivisions without the authority to levy taxes and in
noncorporate public entities, the person or group of persons having ultimate
authority to expend funds for the payment of earnings to employees.
(Source: P.A. 84-1028.)
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40 ILCS 5/21-102.11
(40 ILCS 5/21-102.11) (from Ch. 108 1/2, par. 21-102.11)
Sec. 21-102.11.
Absolute coverage group.
"Absolute coverage group"
means a political subdivision that has not established a retirement system
for its employees as of the time the entity enters into a coverage agreement.
(Source: P.A. 84-1028.)
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40 ILCS 5/21-102.12
(40 ILCS 5/21-102.12) (from Ch. 108 1/2, par. 21-102.12)
Sec. 21-102.12.
"Retirement system coverage group" means a grouping of
employees who are in positions covered by a public retirement system which
has been placed under social security coverage by either Section 218(d)(3)
or Section 218(d)(6) of the Social Security Act.
(Source: P.A. 84-1028.)
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40 ILCS 5/21-102.13
(40 ILCS 5/21-102.13) (from Ch. 108 1/2, par. 21-102.13)
Sec. 21-102.13.
Employment.
"Employment" means service
covered under a coverage agreement pursuant to this Article, which is
performed by a person who is employed by the State or a political
subdivision, or who holds an elective or appointive office of the State or
a political subdivision.
(Source: P.A. 84-1028.)
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40 ILCS 5/21-102.14
(40 ILCS 5/21-102.14) (from Ch. 108 1/2, par. 21-102.14)
Sec. 21-102.14.
Employee.
"Employee" means any person engaged in employment.
(Source: P.A. 84-1028.)
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40 ILCS 5/21-102.15
(40 ILCS 5/21-102.15) (from Ch. 108 1/2, par. 21-102.15)
Sec. 21-102.15.
Policeman.
"Policeman" means any person who is a member
of the police department of a municipality as defined in Section 3-103 of
this Code or of a city subject to Article 5 of this Code, whether paid on a
full-time or part-time basis, or of a law enforcement organization within a
department or agency of the State, and who is by virtue of such public employment
vested by law with a primary duty to maintain public order or to make arrests
for offenses, whether that duty extends to all offenses or is limited to
specific offenses.
(Source: P.A. 84-1028.)
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40 ILCS 5/21-102.16
(40 ILCS 5/21-102.16) (from Ch. 108 1/2, par. 21-102.16)
Sec. 21-102.16.
Fireman.
"Fireman" means any member of
a regularly constituted fire department of a municipality as defined in
Section 4-103 of this Code, or of a city subject to Article 6 of this Code,
whether paid on a full time, part time or per-call basis; or any member
occupying a classified position as a fire fighter in the fire protection
service of a State department.
(Source: P.A. 84-1028.)
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40 ILCS 5/21-102.17
(40 ILCS 5/21-102.17) (from Ch. 108 1/2, par. 21-102.17)
Sec. 21-102.17.
Wages.
"Wages" means remuneration for employment, including
the cash value of remuneration paid in any medium other than cash,
but not including that part of such remuneration which would not constitute
"wages" within the meaning of the Social Security Act for wages paid
prior to January 1, 1987, or the Federal Insurance Contributions Act for
wages paid after December 31, 1986.
(Source: P.A. 85-442.)
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40 ILCS 5/21-102.18
(40 ILCS 5/21-102.18) (from Ch. 108 1/2, par. 21-102.18)
Sec. 21-102.18.
Mandatory medicare coverage.
"Mandatory medicare
coverage" means the mandatory coverage in the Federal Medicare Insurance
Program of all State and local governmental personnel who are in positions
not covered under the Federal Social Security Insurance Program and who
were not performing regular and substantial services prior to April 1,
1986, without regard to whether such State or local government has come
under the provisions of this Article with respect to the Federal Social
Security Insurance Program.
(Source: P.A. 84-1472.)
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40 ILCS 5/21-102.19
(40 ILCS 5/21-102.19) (from Ch. 108 1/2, par. 21-102.19)
Sec. 21-102.19.
Optional medicare coverage.
"Optional medicare
coverage" means coverage in the Federal Medicare Insurance Program, by
means of a voluntary coverage agreement, of State or local government
personnel who are in positions not covered under the Federal Social Security
Insurance Program, and who were performing regular and substantial services
for such State or local government on March 31, 1986, and who have not
terminated such service after March 31, 1986.
(Source: P.A. 84-1472.)
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40 ILCS 5/21-102.20
(40 ILCS 5/21-102.20) (from Ch. 108 1/2, par. 21-102.20)
Sec. 21-102.20.
Mandatory Social Security Coverage.
"Mandatory Social
Security coverage" means the coverage in the federal Social Security System
that is required under Section 210 of the federal Social Security Act for
certain State and local government personnel who are not members of a State
or local governmental retirement system.
(Source: P.A. 87-11 .)
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40 ILCS 5/21-103
(40 ILCS 5/21-103) (from Ch. 108 1/2, par. 21-103)
Sec. 21-103.
Political subdivision - election of coverage.
(a) Any political subdivision other than a school district
and other than a political subdivision which is
participating in the Illinois Municipal Retirement Fund under Article 7 of this
Code may, by resolution of the governing body (in the case of a township,
at an annual town meeting or at a special town meeting called for that
purpose), or by referendum, elect to have its employees covered
by the Social Security Act.
Whenever a petition requesting Social Security coverage for
employees, signed by not less than 5% of the legal voters of the
political subdivision, is presented to the governing body, such governing
body shall cause such proposition to be certified to the proper election
officials who shall submit the proposition to the voters at the next
appropriate election in accordance with the general election law, or in the
case of a township at the next annual town meeting if the petition is received
more than 15 and less than 60 days before the annual town meeting, or else at a
special town meeting called for that purpose. In the territory of the
political subdivision every elector may vote upon the proposition stated in the
petition. Such proposition shall be in substantially the following form:
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Shall....(political subdivision) enter into a coverage agreement with the Social Security Division of YES the State Employees' Retirement - - - - - - - - - - - - - - - - - - - - - - -
System for extension of Federal Social NO Security coverage to employees of....(political subdivision)? - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
If a majority of all of the votes cast upon the proposition is in favor
thereof, or if the governing body has adopted a resolution or ordinance
providing for coverage of its employees, the governing body shall execute the
coverage agreement provided by the State Agency and submit such coverage
agreement to the State Agency for approval. The coverage agreement shall be
approved by the State Agency if it meets the requirements of subsection (b).
(b) Each coverage agreement of a political subdivision and any
amendment thereof shall be approved by the State Agency if it finds that
such coverage agreement, or such coverage agreement as amended,
is in conformity with such requirements as are provided in the regulations
of the State Agency, except that no such coverage agreement shall be
approved unless:
(1) it is in conformity with the requirements of the | | Social Security Act and with the Federal-State Agreement entered into under this Article;
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(2) it provides that all services which constitute
| | employment and are performed in the employ of the political subdivision by any employees thereof shall be covered by the coverage agreement, except that such agreement may, if the political subdivision so requests, exclude all services in one or more classes of elective positions, or positions the compensation for which is on a fee basis;
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(3) it provides for such methods of administration of
| | the coverage agreement by the political subdivision as are found by the State Agency to be necessary for the proper and efficient administration of the coverage agreement; and
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(4) it provides for an effective date of coverage not
| | earlier than the first day of the fifth calendar year preceding the year in which the resulting modification of the Federal-State Agreement is agreed to by the Secretary and the State.
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(c) In addition to the requirements in subsection (b), no coverage
agreement which provides for an effective date of coverage prior to January
1, 1987 shall be approved unless:
(1) it specifies the sources from which the funds
| | required of it by this Article are expected to be derived, and contains reasonable assurance that such sources will be adequate for such purpose;
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(2) it contains a promise to deliver the proper funds
| | to the State Agency on or before the date requested by the State Agency;
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(3) it specifies some officer to act as custodian of
| | all funds collected and to be responsible to the State Agency for the delivery of such funds;
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(4) it provides that the political subdivision shall
| | pay contributions on covered wages at such times as the State Agency may by regulations prescribe, in the amounts and at the rates provided by this Article; and
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(5) it provides that the political subdivision will
| | make such reports as the State Agency may from time to time require, and comply with such provisions as the State Agency or the Secretary may from time to time find necessary.
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(Source: P.A. 90-448, eff. 8-16-97 .)
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40 ILCS 5/21-104
(40 ILCS 5/21-104) (from Ch. 108 1/2, par. 21-104)
Sec. 21-104.
Noncorporate public entities - election
of coverage. Any noncorporate public entity may by
resolution of its governing body elect to have its employees covered by the
Social Security Act in the same manner and subject to the same
conditions as are set forth in Sections 21-103 and 21-105, but subject
to the following additional conditions:
(a) that the agreement by which the entity was created or an amendment
to that agreement authorizes the entity to provide for the extension of
Social Security benefits to its employees; and
(b) that Social Security contributions due on wages covered under the
agreement paid prior to January 1, 1987 and wage reports required for
calendar years prior to 1987 are submitted to the State Agency along with
the coverage agreement executed by the entity.
(Source: P.A. 85-442.)
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40 ILCS 5/21-105
(40 ILCS 5/21-105) (from Ch. 108 1/2, par. 21-105)
Sec. 21-105.
Retirement systems - election of coverage.
A referendum
on the question
of coverage under the Social Security Act may be authorized by the Governor
with respect to any retirement system, or by the
board of trustees of such system, or by the governing body of any
political subdivision which has established a retirement system, except
for a retirement system established under Article
3, 4, 5 or 6 of this Code.
Such a referendum shall also be held upon petition
signed by at least 10% of the members of any retirement system except for
a retirement system established
under Article 3, 4, 5 or 6 of this Code. Such
petition shall be examined and checked by the governing body or board of
trustees of the retirement system, and such
board or body shall certify that each signer of the petition is an
eligible member qualified
to vote in such referendum, and that the names of all ineligible individuals
have been stricken.
Prior to a referendum on that question and to the notice of
the referendum required by either Section 218(d)(3) or 218(d)(7)
of the Social
Security Act, a plan of coverage shall be formulated by the governing
body of each retirement system or Board of Trustees, as the case may be,
whose members are to participate in the referendum for the coordination
of the retirement system with the social security insurance provisions
of Title II of the Social Security Act.
Where a retirement system is governed by an Act of the State of
Illinois, such plan of coverage shall be presented to the General
Assembly for enactment by amendment to such Act.
The ballot to be used in the
referendum shall contain a clear description of the plan of coverage,
which description may take the form of a summary statement setting forth
the changes or revisions, if any, to be made in the benefit and
contribution provisions of the retirement system, and the obligations to
be imposed upon the members of the system if the plan of coverage is
approved in the referendum and their positions are included under an
agreement pursuant to the provisions of this Article.
The referendum shall be subject to the following conditions:
(a) Only eligible employees as defined in Section 218(d)(3) of the Social
Security Act shall be permitted to vote.
(b) Should such referendum under Section 218(d)(3)
fail to obtain approval, any subsequent referendum among members
of the retirement
system in question shall not be held for a period of at least 3 years
from the date of the
referendum.
(c) Upon receipt of satisfactory proof that the conditions of the
referendum specified in either Section 218(d)(3) or Section 218(d)(7)
of the Social Security Act have been met, the Governor or an official of the
State designated by him shall so certify to the Secretary. Proper steps
to give effect to the results of the referendum
shall then be taken by the State Agency, and a modification to the
Federal-State Agreement shall be executed in accordance with
Section 21-108 within a period of 2 years from the date of the referendum.
(Source: P.A. 84-1028.)
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40 ILCS 5/21-105.1
(40 ILCS 5/21-105.1) (from Ch. 108 1/2, par. 21-105.1)
Sec. 21-105.1. Election of optional medicare coverage. The State or
any political subdivision or noncorporate public entity may elect to
provide optional medicare coverage for its personnel in the same manner and
subject to the same conditions as are set forth in Sections 21-103, 21-104
and 21-105 for the election of Social Security coverage, including a retirement system established under Article 3, 4, 5, or 6 of this Code, notwithstanding the provisions contained in Section 21-105 of this Article.
(Source: P.A. 98-1117, eff. 8-26-14.)
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40 ILCS 5/21-105.2
(40 ILCS 5/21-105.2) (from Ch. 108 1/2, par. 21-105.2)
Sec. 21-105.2.
Mandatory Social Security Coverage.
Beginning July 1,
1991, the State and all political subdivisions that have any employees who
are subject to mandatory Social Security coverage shall report the wages of
those employees on their quarterly wage reports to the IRS, and shall make
the appropriate FICA contributions as required by law with respect to those
employees. Such employees may be added to the appropriate coverage groups
in accordance with the modification procedures provided in this Article.
(Source: P.A. 87-11.)
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40 ILCS 5/21-106
(40 ILCS 5/21-106) (from Ch. 108 1/2, par. 21-106)
Sec. 21-106.
Municipal police and firemen.
(1) If a municipality enters into a coverage agreement under this
Article prior to having established a pension plan under Article 3 or 4 of
this Code, all police positions and all firemen positions, including
members of a volunteer fire department organized pursuant to municipal
ordinance, shall become subject to social security and be included within
the absolute coverage group of the municipality in compliance with Section
218(b)(5) of the Social Security Act. If a municipality establishes a
pension plan under Article 3 or 4 of this Code subsequent to establishing
social security coverage under the conditions set forth in this subsection,
the police and firemen positions shall remain subject to social security as
part of the original absolute coverage group.
(2) If a municipality enters into a coverage agreement under
this Article subsequent to having established a pension plan under
Article 3, 4, 5 or 6 of this Code, or subsequent to becoming legally obligated
to establish such plan even though having not complied, all police and firemen
positions included under such pension plan shall be exempted from social
security coverage and excluded from the absolute coverage group of that
municipality pursuant to Section 218(d)(5)(A) of the Social Security Act.
(3) If the covered or non-covered social security status of the police
and firemen positions in a municipality has been determined under the
conditions set forth in either subsection (1) or (2) of this Section, such
covered or non-covered status shall remain in effect in the event the
municipality shall begin participation in the Illinois Municipal Retirement
Fund pursuant to Sections 7-132 and 7-134 of this Code.
(4) Police and firemen positions which have not acquired social security
coverage as part of an absolute coverage group under an agreement executed
by the municipality pursuant to Section 21-103 shall not acquire social
security coverage by virtue of the municipality's mandate to participate
in the Illinois Municipal Retirement Fund under Section 7-132, or the
municipality's election to participate under Section 7-134.
(5) Incumbents occupying police and firemen positions who because of
age, physical condition, length of service or other disqualifications are
ineligible to participate in local pension plans established under Articles
3 and 4 of this Code are also excluded from social security coverage if the
employing municipality has obtained social security coverage under the
conditions stated in subsections (2) and (4) of this Section, except that
beginning July 1, 1991, such persons are subject to mandatory Social Security
coverage.
(Source: P.A. 87-11.)
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40 ILCS 5/21-107
(40 ILCS 5/21-107) (from Ch. 108 1/2, par. 21-107)
Sec. 21-107.
State police and firemen.
Any position in the
service of a State agency, department, board or commission which (1) has
been designated as a fireman, police officer, or law enforcement officer by
the State Department of Central Management Services, the State Attorney
General or the State Agency, or declared to be a fireman or police position
as a result of a court ruling upon the question, and (2) extends to the
incumbent the right to participation in the State Employees' Retirement
System, shall be exempted from Social Security coverage in compliance with
Section 218(d)(5)(A) of the Social Security Act, effective as of the date
of such designation or court ruling, except that beginning July 1, 1991,
incumbents of such positions who do not participate in the State Employees'
Retirement System shall be subject to mandatory Social Security coverage.
(Source: P.A. 85-442; 87-11.)
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40 ILCS 5/21-108
(40 ILCS 5/21-108) (from Ch. 108 1/2, par. 21-108)
Sec. 21-108.
Modification to Federal-State Agreement.
Upon approval
of the coverage agreement submitted by an absolute or retirement system
coverage group, the State Agency, on behalf of the State of Illinois, shall
modify the Federal-State Agreement to extend coverage to employees of the
coverage group consistent with the provisions
of Section 218 of the Social Security Act, this Article and the approved
coverage agreement. Such modification shall specify:
(1) the coverage group or employee classification to be covered;
(2) any employee classification to be excluded, or to continue to be excluded in
the case of a modification to extend coverage to additional employee
classifications of a covered political subdivision;
(3) the approximate number of employees to be covered by the modification;
(4) the title of the reporting official designated by the political
subdivision as responsible for social security reporting to the State Agency;
(5) the effective date of coverage; and
(6) the controlling date for purposes of retroactive coverage.
(Source: P.A. 84-1028.)
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40 ILCS 5/21-109
(40 ILCS 5/21-109) (from Ch. 108 1/2, par. 21-109)
Sec. 21-109.
Payment of Contributions.
(a) Absolute coverage group: Each political subdivision which has
established Social Security coverage for its employees under this Article
shall pay contributions on
covered wages paid prior to January 1, 1987 in the amounts and at the rates
prescribed by subchapters A and B of the Federal Insurance Contributions
Act at the times prescribed in the regulations of the State Agency.
Taxes due on wages covered under the Social Security Coverage Agreement
paid after December 31, 1986 shall be paid by each political subdivision to
the Internal Revenue Service in the amounts and at the rates specified in
the Federal Insurance Contributions Act and at the times prescribed in the
regulations of the Internal Revenue Service.
Every political subdivision required to make
payments is authorized in consideration of the employee's retention in,
or entry upon, employment to impose upon each of its employees, as to
services which are covered by the coverage agreement, a contribution with
respect to wages computed by applying the rates of contribution prescribed by
Subchapter A of the Federal Insurance Contributions Act, and to deduct the
amount of such contribution from such employee's wages when paid.
Failure to deduct such contribution shall not relieve the employee or
employer of liability therefor.
(b) Retirement system coverage group: As a condition of its coverage
agreement, the governing body or board of trustees of any retirement system
which has adopted Social Security coverage for its members under this Article
shall assume responsibility to the State Agency for the compiling of wage data,
the collection of related contributions prescribed by subchapters A and B of
the Federal Insurance Contributions Act, and the timely reporting and payment
of such items upon the wages of all covered employees paid prior to January 1,
1987 in the manner and at the times prescribed by the State Agency.
Coincident to the adoption of coverage, the governing body or board of
trustees of the retirement system shall promulgate rules and regulations
in conformity with federal regulations, applicable to the State or local
governmental entities or to the agencies and employees participating
therein, to insure the correct application of coverage and the timely and
accurate reporting of wages and collection of contributions.
In the event of failure by the retirement system or the governmental
entities or agencies participating therein to comply with the timely reporting
and payment requirements imposed by this Section, the retirement system
shall be assessed any federal interest or late filing penalties arising
therefrom.
The contributions collected under this Section by any retirement system which
elects to adopt coverage shall be remitted at such times as the State Agency
shall prescribe.
The employees comprising the executive and administrative staff of any
retirement system which elects to adopt the provisions of this
Article shall have the contributions made by the body employing them.
(c) If more or less than the correct amount of contributions is paid to
the State Agency, proper adjustment, or refund without interest if
adjustment is impractical, shall be made in such manner and at such times
as the State Agency shall prescribe.
(Source: P.A. 90-448, eff. 8-16-97.)
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40 ILCS 5/21-109.1
(40 ILCS 5/21-109.1) (from Ch. 108 1/2, par. 21-109.1)
Sec. 21-109.1.
(a) Notwithstanding any law to the contrary, State
agencies, as defined in the State Auditing Act, shall remit to the
Comptroller all contributions required under subchapters A, B and C
of the Federal Insurance Contributions Act, at the rates and at the times
specified in that Act, for wages paid on or after January 1, 1987 on a
warrant of the State Comptroller.
(b) The Comptroller shall establish a fund to be known as the Social
Security Administration Fund, with the State Treasurer as ex officio
custodian. Contributions and other monies received by the Comptroller for
the purposes of the Federal Insurance Contributions Act shall either be
directly remitted to the U.S. Secretary of the Treasury or be held in
trust in such fund, and shall be paid upon the order of the Comptroller for:
(1) payment of amounts required to be paid to the U. | | S. Secretary of the Treasury in the amounts and at the times specified in the Federal Insurance Contributions Act; and
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(2) payment of refunds for overpayments which are not
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(c) The Comptroller may collect from a State agency the actual or
anticipated amount of any interest and late charges arising from the State
agency's failure to collect and remit to the Comptroller contributions as
required by the Federal Insurance Contributions Act. Such interest and
charges shall be due and payable upon receipt of notice thereof from the
Comptroller.
(d) The Comptroller shall pay to the U. S. Secretary of the Treasury
such amounts at such times as may be required under the Federal Insurance
Contributions Act.
(e) The Comptroller may direct and the State Treasurer shall transfer amounts from the Social Security Administration Fund into the Capital Facility and Technology Modernization Fund as the Comptroller deems necessary. The Comptroller may direct and the State Treasurer shall transfer any such amounts so transferred to the Capital Facility and Technology Modernization Fund back to the Social Security Administration Fund at any time.
(Source: P.A. 102-16, eff. 6-17-21.)
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40 ILCS 5/21-110
(40 ILCS 5/21-110) (from Ch. 108 1/2, par. 21-110)
Sec. 21-110.
Tax levy.
The governing body of any political subdivision
with the power to levy taxes is hereby authorized and empowered to increase
its annual tax levy above the limitation now or hereafter otherwise
authorized by law, by the amount necessary to meet the cost of
participation in the Federal Social Security Insurance Program, including
any share of the cost of participation of an instrumentality or entity
described in subsection (b) or (c) of Section 21-102.8 for which the
political subdivision is responsible, without regard to whether such
participation is mandatory or optional, and without regard to whether the
political subdivision has otherwise come under the provisions of this
Article for purposes of participation in the Federal Social Security
Insurance Program.
(Source: P.A. 87-11.)
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40 ILCS 5/21-110.1
(40 ILCS 5/21-110.1) (from Ch. 108 1/2, par. 21-110.1)
Sec. 21-110.1.
Medicare taxes.
(a) The governing body of every
political subdivision with the power to levy taxes is hereby authorized and
empowered to increase its annual tax levy above the limitation now or
hereafter otherwise authorized by law, by the amount necessary to meet the
cost of its participation in the Federal Medicare Program, including any
share of the cost of participation of an instrumentality or entity
described in subsection (b) or (c) of Section 21-102.8 for which the
political subdivision is responsible, without regard
to whether such participation is mandatory or optional, and without regard
to whether the political subdivision has come under the provisions of this
Article for purposes of participation in the Federal Social Security Insurance Program.
(b) The payment of medicare taxes to the State Agency shall be made in
the same manner and under the same conditions as are set forth in Section
21-109 for payment of Social Security contributions, except that the State
Agency may designate a retirement system to assume responsibility to the
State Agency for the compiling of wage data, the collection of medicare
taxes, and the timely reporting and payment of such items for specified
persons under mandatory or optional medicare coverage, regardless of
whether such retirement system has entered into a coverage agreement for
Social Security coverage pursuant to Section 21-105.
(c) The penalty and audit provisions of Sections 21-112, 21-113 and
21-114 shall apply to the failure or refusal to make timely and correct
payments of medicare taxes or reports of wages in accordance with State
Agency regulations.
(Source: P.A. 84-1472.)
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40 ILCS 5/21-112
(40 ILCS 5/21-112) (from Ch. 108 1/2, par. 21-112)
Sec. 21-112.
Penalties.
For failure to make timely reporting of
employee wages and payment of contributions on covered wages paid prior
to January 1, 1987 in accordance with State Agency
regulations, a delinquent political subdivision or retirement system may be
assessed a late filing penalty which shall be, upon receipt of notice,
immediately due and payable to the State Agency. The amount of the penalty
may be adjusted from time to time with the approval of the Board of
Trustees of the State Employees' Retirement System of Illinois. If
the late filing is of such duration that the State Agency is unable
to make timely payment on behalf of the political subdivision or retirement
system to the U.S. Department of Health and Human Services and a federal
interest charge arises, the late filing penalty shall be applied toward
payment of the federal interest charge. If the federal interest charge
exceeds the amount of the late filing penalty, the political subdivision or
retirement system shall be assessed the balance of the federal interest charge.
(Source: P.A. 85-442.)
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40 ILCS 5/21-113
(40 ILCS 5/21-113) (from Ch. 108 1/2, par. 21-113)
Sec. 21-113.
Tax audit.
(1) Upon failure or refusal of any covered
political subdivision or retirement system to submit wage reports and pay
amounts due the State Agency on covered wages paid prior to January 1,
1987 in accordance with the terms of its agreement or applicable
regulations, the State Agency after giving notice may order the entity to
make its payroll books and related records available at the office of the
State Agency in Springfield, or at the business office of the entity as the
State Agency shall direct, and may audit those books and records to determine
the liability for reporting wages, the amount of contributions
due, the late filing penalty, and the federal interest
charge. The expenses incurred by the State
Agency to conduct the audit may be included in the amount due.
(2) Upon completion of the audit, the entity shall be given an opportunity
to make payment of the amount due. In the event of refusal to make
payment, the State Agency shall then certify the amount to be collected to
the State Comptroller who shall deduct such amounts or any part thereof
from any State funds to which the entity may be entitled. Upon exercising
the State's right of setoff, the Comptroller shall pay amounts so deducted
to the State Agency.
(3) If State funds are not available from which setoff can be made by
the Comptroller, the State Agency may proceed by instituting action in
the appropriate circuit court against the defaulting entity
to recover the amount due.
(Source: P.A. 85-442.)
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40 ILCS 5/21-114
(40 ILCS 5/21-114) (from Ch. 108 1/2, par. 21-114)
Sec. 21-114.
General investigative audits.
The State Agency upon
its own initiative may conduct investigative field audits of the books and
payroll records for calendar years prior to 1987 of any political
subdivision or retirement system which has adopted coverage. The audits
may be conducted at the business office of any participating entity or at
any other site mutually convenient to the State Agency and the entity. The
State Agency may require covered entities to submit reconciliation
statements disclosing total wages and compensation disbursed for all
personal services performed during a designated period for comparison with
wages included upon reports for which contributions were paid in that same period.
The State Agency may also require, accept and rely upon payroll audits
performed by the field staff of any retirement system conducted in accordance
with guidelines established by the State Agency, to determine compliance
with the reporting and collection of contributions upon covered wages.
The cost of investigative audits conducted by the State Agency under
this Section shall be recovered through levy of the annual administrative
charge as provided in Section 21-116; however, if the investigative audit
should disclose substantial noncompliance requiring an extensive audit,
the State Agency may assess audit costs summarily against the noncomplying
entity.
(Source: P.A. 85-442.)
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40 ILCS 5/21-115
(40 ILCS 5/21-115) (from Ch. 108 1/2, par. 21-115)
Sec. 21-115.
Special fund abolished; designation of remittance agents.
(a) The Social Security Contribution Fund is abolished at the close of
business on June 30, 1997. Any balance then remaining in that Fund shall be
transferred to the Social Security Administration Fund created under Section
21-109.1, and any amounts thereafter designated for deposit into the Social
Security Contribution Fund shall instead be deposited into the Social Security
Administration Fund.
(b) The State Agency is authorized to designate any retirement
system which has adopted coverage under this Article to act as remittance agent
on behalf of the State Agency and to make payment of the Social Security
contributions collected upon the wages of employees within the retirement
system coverage group directly to the designated Federal Reserve Bank. Any
retirement system so designated as a
remittance agent shall continue to be subject to the regulations of the State
Agency with respect to coverage determinations, wage reporting, corrective
adjustments, and accountability for tax collections in the same manner as any
other covered entity.
(Source: P.A. 90-448, eff. 8-16-97.)
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40 ILCS 5/21-117
(40 ILCS 5/21-117) (from Ch. 108 1/2, par. 21-117)
Sec. 21-117.
Inactivation.
Any political subdivision which ceases its corporate existence as the result of legal
dissolution, annexation, or consolidation, shall promptly notify the
State Agency and furnish
legal documentation of such fact, whereupon the State Agency shall notify
the Secretary of the U.S. Department of Health and
Human Services to permanently inactivate
the coverage and reporting requirements applicable to such entity. If any
employees remain upon the payroll of the entity beyond the official date
of dissolution, the notice to the State Agency shall specify the ending
date of the calendar month in which their employment relationship shall
cease, and the coverage and reporting requirements under the entity's agreement
shall continue upon any wages paid during that period. The dissolution
notice must identify the name and address of the repository where the payroll
books and records of the dissolved entity shall be preserved for the statutory period.
(Source: P.A. 84-1028.)
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40 ILCS 5/21-118
(40 ILCS 5/21-118) (from Ch. 108 1/2, par. 21-118)
Sec. 21-118.
Administrative review.
All orders for
inactivation of a plan under Section 21-117 made by the State Agency shall
be subject to judicial review pursuant to the provisions of the
Administrative Review Law, and all amendments and modifications thereof,
and the rules adopted pursuant thereto.
(Source: P.A. 84-1028.)
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