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90_HB3515enr
40 ILCS 5/8-230.1 from Ch. 108 1/2, par. 8-230.1
Amends the Illinois Pension Code. Makes technical
changes in a Section of the Chicago Municipal Article
relating to contributions.
LRB9011159EGfg
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1 AN ACT in relation to public employee retirement
2 benefits, amending named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Sections 2-121, 2-123, 2-126, 2-126.1, 3-114.3,
7 3-114.4, 3-121, 5-156, 5-157, 5-167.4, 5-168, 5-172, 5-204,
8 6-128.4, 6-165, 7-146, 7-150, 7-159, 7-173.1, 7-173.2, 8-137,
9 8-137.1, 8-138, 8-139, 8-150.1, 8-158, 8-173, 8-244.1,
10 11-134, 11-134.1, 11-134.2, 11-134.3, 11-145.1, 11-153,
11 11-169, 11-181, 11-182, 11-183, 12-133.1, 12-166, 14-104,
12 14-104.10 (as added by P.A. 90-32), 14-133.1, 15-107, 15-135,
13 15-136, 15-136.4, 15-141, 15-142, 15-145, 15-146, 15-150,
14 15-153.2, 15-153.3, 15-154, 15-157, 15-158.2, 15-158.3,
15 15-165, 15-167, 18-129, and 18-133.1 and adding Sections
16 3-114.6, 8-230.7, 12-133.5, 15-103.1, 15-103.2, 15-103.3, and
17 15-134.5 as follows:
18 (40 ILCS 5/2-121) (from Ch. 108 1/2, par. 2-121)
19 Sec. 2-121. Survivor's annuity - conditions for payment.
20 (a) A survivor's annuity shall be payable to a surviving
21 spouse or eligible child (1) upon the death in service of a
22 participant with at least 2 years of service credit, or (2)
23 upon the death of an annuitant in receipt of a retirement
24 annuity, or (3) upon the death of a participant who
25 terminated service with at least 4 years of service credit.
26 The change in this subsection (a) made by this amendatory
27 Act of 1995 applies to survivors of participants who die on
28 or after December 1, 1994, without regard to whether or not
29 the participant was in service on or after the effective date
30 of this amendatory Act of 1995.
31 (b) To be eligible for the survivor's annuity, the
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1 spouse and the participant or annuitant must have been
2 married for a continuous period of at least one year
3 immediately preceding the date of death, but need not have
4 been married on the day of the participant's last termination
5 of service, regardless of whether such termination occurred
6 prior to the effective date of this amendatory Act of 1985.
7 (c) The annuity shall be payable beginning on the date
8 of a participant's death, or the first of the month following
9 an annuitant's death, if the spouse is then age 50 or over,
10 or beginning at age 50 if the spouse is then under age 50.
11 If an eligible child or children of the participant or
12 annuitant (or a child or children of the eligible spouse
13 meeting the criteria of item (1), (2), or (3) of subsection
14 (d) of this Section) also survive, and the child or children
15 are under the care of the eligible spouse, the annuity shall
16 begin as of the date of a participant's death, or the first
17 of the month following an annuitant's death, without regard
18 to the spouse's age.
19 The change to this subsection made by this amendatory Act
20 of 1998 (relating to children of an eligible spouse) applies
21 to the eligible spouse of a participant or annuitant who dies
22 on or after the effective date of this amendatory Act,
23 without regard to whether the participant or annuitant is in
24 service on or after that effective date.
25 (d) For the purposes of this Section and Section
26 2-121.1, "eligible child" means a child of the deceased
27 participant or annuitant who is at least one of the
28 following:
29 (1) unmarried and under the age of 18;
30 (2) unmarried, a full-time student, and under the
31 age of 22;
32 (3) dependent by reason of physical or mental
33 disability.
34 The inclusion of unmarried students under age 22 in the
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1 calculation of survivor's annuities by this amendatory Act of
2 1991 shall apply to all eligible students beginning January
3 1, 1992, without regard to whether the deceased participant
4 or annuitant was in service on or after the effective date of
5 this amendatory Act of 1991.
6 Adopted children shall have the same status as children
7 of the participant or annuitant, but only if the proceedings
8 for adoption are commenced at least one year prior to the
9 date of the participant's or annuitant's death.
10 (e) Remarriage of a surviving spouse prior to attainment
11 of age 55 shall disqualify the surviving spouse from the
12 receipt of a survivor's annuity.
13 (Source: P.A. 89-136, eff. 7-14-95.)
14 (40 ILCS 5/2-123) (from Ch. 108 1/2, par. 2-123)
15 Sec. 2-123. Refunds.
16 (a) A participant who ceases to be a member, other than
17 an annuitant, shall, upon written request, receive a refund
18 of his or her total contributions, without interest. The
19 refund shall include the additional contributions for the
20 automatic increase in retirement annuity. By accepting the
21 refund, a participant forfeits all accrued rights and
22 benefits in the System and loses credit for all service.
23 However, if he or she again becomes a member, he or she may
24 resume status as a participant and reestablish any forfeited
25 service credit by paying to the System the full amount
26 refunded, together with interest at 4% per annum from the
27 time the refund is paid to the date the member again becomes
28 a participant.
29 A former member of the General Assembly may reestablish
30 any service credit forfeited by acceptance of a refund by
31 paying to the System on or before February 1, 1993, the full
32 amount refunded, together with interest at 4% per annum from
33 the date of payment of the refund to the date of repayment.
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1 When a member or former member owes money to the System,
2 interest at the rate of 4% per annum shall accrue and be
3 payable on such amounts owed beginning on the date of
4 termination of service as a member until the contributions
5 due have been paid in full.
6 (b) A participant who (1) has elected to cease making
7 contributions for survivor's annuity under subsection (b) of
8 Section 2-126, (2) has no eligible survivor's annuity
9 beneficiary survivor upon becoming an annuitant, or (3) who
10 terminates service with less than 8 years of service is
11 entitled to a refund of the contributions for a survivor's
12 annuity, without interest. If the such person later marries,
13 a survivor's annuity shall not be payable upon his or her
14 death, unless the amount of the such refund is repaid to the
15 System, together with interest at the rate of 4% per year
16 from the date of refund to the date of repayment.
17 (c) If at the date of retirement or death of a
18 participant who served as an officer of the General Assembly,
19 the total period of such service is less than 4 years, the
20 additional contributions made by such member on the
21 additional salary as an officer shall be refunded unless the
22 participant served as an officer for at least 2 years and has
23 contributed the amount he or she would have contributed if he
24 or she had served as an officer for 4 years as provided in
25 Section 2-126.
26 (d) Upon the termination of the last survivor's annuity
27 payable to a survivor of a deceased participant, the excess,
28 if any, of the total contributions made by the participant
29 for retirement and survivor's annuity, without interest, over
30 the total amount of retirement and survivor's annuity
31 payments received by the participant and the participant's
32 survivors shall be refunded upon request:
33 (i) if there was a surviving spouse of the deceased
34 participant who was eligible for a survivor's annuity, to
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1 the designated beneficiary of that spouse or, if the
2 designated beneficiary is deceased or there is no
3 designated beneficiary, to that spouse's estate;
4 (ii) if there was no eligible surviving spouse of
5 the deceased participant, to the designated beneficiary
6 of the deceased participant or, if the designated
7 beneficiary is deceased or there is no designated
8 beneficiary, to the deceased participant's estate.
9 (e) Upon the death of a participant, if a survivor's
10 annuity is not payable under this Article, a beneficiary
11 designated by the participant shall be entitled to a refund
12 of all contributions made by the participant. If the
13 participant has not designated a refund beneficiary, the
14 surviving spouse shall be entitled to the refund of
15 contributions; if there is no surviving spouse, the
16 contributions shall be refunded to the participant's
17 surviving children, if any, and if no children survive, the
18 refund payment shall be made to the participant's estate.
19 (Source: P.A. 90-448, eff. 8-16-97.)
20 (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
21 Sec. 2-126. Contributions by participants.
22 (a) Each participant shall contribute toward the cost of
23 his or her retirement annuity a percentage of each payment of
24 salary received by him or her for service as a member as
25 follows: for service between October 31, 1947 and January 1,
26 1959, 5%; for service between January 1, 1959 and June 30,
27 1969, 6%; for service between July 1, 1969 and January 10,
28 1973, 6 1/2%; for service after January 10, 1973, 7%; for
29 service after December 31, 1981, 8 1/2%.
30 (b) Beginning August 2, 1949, each male participant, and
31 from July 1, 1971, each female participant shall contribute
32 towards the cost of the survivor's annuity 2% of salary.
33 A participant who has no eligible survivor's annuity
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1 beneficiary may elect to cease making contributions for
2 survivor's annuity under this subsection. A survivor's
3 annuity shall not be payable upon the death of a person who
4 has made this election, unless prior to that death the
5 election has been revoked and the amount of the contributions
6 that would have been paid under this subsection in the
7 absence of the election is paid to the System, together with
8 interest at the rate of 4% per year from the date the
9 contributions would have been made to the date of payment.
10 (c) Beginning July 1, 1967, each participant shall
11 contribute 1% of salary towards the cost of automatic
12 increase in annuity provided in Section 2-119.1. These
13 contributions shall be made concurrently with contributions
14 for retirement annuity purposes.
15 (d) In addition, each participant serving as an officer
16 of the General Assembly shall contribute, for the same
17 purposes and at the same rates as are required of a regular
18 participant, on each additional payment received as an
19 officer. If the participant serves as an officer for at
20 least 2 but less than 4 years, he or she shall contribute an
21 amount equal to the amount that would have been contributed
22 had the participant served as an officer for 4 years.
23 Persons who serve as officers in the 87th General Assembly
24 but cannot receive the additional payment to officers because
25 of the ban on increases in salary during their terms may
26 nonetheless make contributions based on those additional
27 payments for the purpose of having the additional payments
28 included in their highest salary for annuity purposes;
29 however, persons electing to make these additional
30 contributions must also pay an amount representing the
31 corresponding employer contributions, as calculated by the
32 System.
33 (Source: P.A. 86-273; 87-1265.)
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1 (40 ILCS 5/2-126.1) (from Ch. 108 1/2, par. 2-126.1)
2 Sec. 2-126.1. Pickup of contributions.
3 (a) The State shall pick up the participant
4 contributions required under Section 2-126 for all salary
5 earned after December 31, 1981. The contributions so picked
6 up shall be treated as employer contributions in determining
7 tax treatment under the United States Internal Revenue Code.
8 The State shall pay these participant contributions from the
9 same source of funds which is used in paying salary to the
10 participant. The State may pick up these contributions by a
11 reduction in the cash salary of the participant. If
12 participant contributions are picked up they shall be treated
13 for all purposes of this Article 2 in the same manner as
14 participant contributions that were made prior to the date
15 that the pick up of contributions began.
16 (b) Subject to the requirements of federal law, a
17 participant may elect to have the employer pick up optional
18 contributions that the participant has elected to pay to the
19 System, and the contributions so picked up shall be treated
20 as employer contributions for the purposes of determining
21 federal tax treatment. The employer shall pick up the
22 contributions by a reduction in the cash salary of the
23 participant and shall pay the contributions from the same
24 fund that is used to pay earnings to the participant. The
25 election to have optional contributions picked up is
26 irrevocable and the optional contributions may not thereafter
27 be prepaid, by direct payment or otherwise. If the provision
28 authorizing the optional contribution requires payment by a
29 stated date (rather than the date of withdrawal or
30 retirement), that requirement shall be deemed to have been
31 satisfied if (i) on or before the stated date the participant
32 executes a valid irrevocable election to have the
33 contributions picked up under this subsection, and (ii) the
34 picked-up contributions are in fact paid to the System as
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1 provided in the election.
2 (Source: P.A. 90-448, eff. 8-16-97.)
3 (40 ILCS 5/3-114.3) (from Ch. 108 1/2, par. 3-114.3)
4 Sec. 3-114.3. Heart attack suffered in performance of
5 duties. Any police officer who suffers a heart attack as a
6 result of the performance and discharge of police duty shall
7 be considered as having been injured in the performance of an
8 act of duty and shall be eligible for the benefits provided
9 under this Article for police officers injured in the
10 performance of an act of duty or, if applicable, the benefits
11 provided in Section 3-114.6.
12 (Source: P.A. 83-1440.)
13 (40 ILCS 5/3-114.4) (from Ch. 108 1/2, par. 3-114.4)
14 Sec. 3-114.4. Return to active duty after disability. A
15 police officer who receives a disability pension under
16 Section Sections 3-114.1, or 3-114.2, or 3-114.6 for more
17 than 2 years and who returns to active duty must remain in
18 active police service for at least 5 years before becoming
19 eligible for a disability pension greater than the pension
20 paid for the prior disability.
21 (Source: P.A. 83-1440.)
22 (40 ILCS 5/3-114.6 new)
23 Sec. 3-114.6. Occupational disease disability pension.
24 (a) This Section applies only to police officers who are
25 employed by a municipality with a combined police and fire
26 department and who have regular firefighting duties in
27 addition to their law enforcement duties.
28 (b) The General Assembly finds that service in a police
29 department that also has firefighting duties requires
30 officers to perform unusual tasks in times of stress and
31 danger; that officers are subject to exposure to extreme heat
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1 or extreme cold in certain seasons while performing their
2 duties; that they are required to work in the midst of and
3 are subject to heavy smoke fumes and carcinogenic, poisonous,
4 toxic, or chemical gases from fires; and that these
5 conditions exist and arise out of or in the course of
6 employment.
7 (c) An active officer with 5 or more years of creditable
8 service who is found to be unable to perform his or her
9 duties in the department by reason of heart disease,
10 tuberculosis, or any disease of the lungs or respiratory
11 tract, resulting from service as an officer, is entitled to
12 an occupational disease disability pension during any period
13 of such disability for which he or she has no right to
14 receive salary.
15 An active officer who has completed 5 or more years of
16 service and is unable to perform his or her duties in the
17 department by reason of a disabling cancer, which develops or
18 manifests itself during a period while the officer is in the
19 service of the department, is entitled to receive an
20 occupational disease disability benefit during any period of
21 such disability for which he or she does not have a right to
22 receive salary. In order to receive this occupational
23 disease disability benefit, the cancer must be of a type that
24 may be caused by exposure to heat, radiation, or a known
25 carcinogen as defined by the International Agency for
26 Research on Cancer.
27 An officer who, after the effective date of this
28 amendatory Act of 1998, enters the service of a combined
29 police and fire department and has regular firefighting
30 duties shall be examined by one or more practicing physicians
31 appointed by the board. If the examination discloses
32 impairment of the heart, lungs, or respiratory tract, or the
33 existence of cancer, the officer shall not be entitled to an
34 occupational disease disability pension under this Section
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1 unless and until a subsequent examination reveals no such
2 impairment or cancer.
3 The occupational disease disability pension shall be 65%
4 of the salary attached to the rank held by the officer at the
5 time of his or her removal from the municipality's department
6 payroll.
7 The occupational disease disability pension is payable to
8 the officer during the period of the disability. If the
9 disability ceases before the death of the officer, the
10 disability pension payable under this Section shall also
11 cease and the officer thereafter shall receive such pension
12 benefits as are provided in accordance with other provisions
13 of this Article.
14 If an officer dies while still disabled and receiving a
15 disability pension under this Section, the disability pension
16 shall continue to be paid to the officer's survivors in the
17 sequence provided in Section 3-112.
18 (40 ILCS 5/3-121) (from Ch. 108 1/2, par. 3-121)
19 Sec. 3-121. Marriage and remarriage. The pensions
20 provided in Sections 3-112, 3-114.1, and 3-114.2, and 3-114.6
21 shall not be paid to a child or dependent parent after
22 marriage or remarriage of the child or dependent parent
23 following the death of the police officer.
24 The pensions provided in Sections 3-112, 3-114.1 and
25 3-114.2 shall not be paid to a surviving spouse after
26 remarriage following the death of the police officer, if the
27 remarriage occurs (i) prior to January 1, 1974 or (ii) after
28 December 31, 1974 but before the effective date of this
29 amendatory Act of 1995. Remarriage on or after the effective
30 date of this amendatory Act of 1995 does not affect the
31 surviving spouse's eligibility for those pensions, regardless
32 of whether the deceased police officer was in service on or
33 after that effective date. A surviving spouse whose pension
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1 was terminated due to remarriage during 1974, and who applies
2 for reinstatement of that pension before January 1, 1990,
3 shall be entitled to have the pension reinstated beginning on
4 January 1, 1990.
5 (Source: P.A. 89-408, eff. 11-15-95.)
6 (40 ILCS 5/5-156) (from Ch. 108 1/2, par. 5-156)
7 Sec. 5-156. Proof of duty or ordinary disability -
8 Physical examinations. Proof of duty, occupational disease,
9 or ordinary disability shall be furnished to the board by at
10 least one licensed and practicing physician appointed by the
11 board. In cases where the board requests an applicant to get
12 a second opinion, the applicant must select a physician from
13 a list of qualified licensed and practicing physicians who
14 specialize in the various medical areas related to duty
15 injuries and illnesses, as established by the board. The
16 board may require other evidence of disability. A disabled
17 policeman who receives a duty, occupational disease, or
18 ordinary disability benefit shall be examined at least once a
19 year by one or more physicians appointed by the board. When
20 the disability ceases, the board shall discontinue payment of
21 the benefit, and the policeman shall be returned to active
22 service.
23 (Source: P.A. 86-272.)
24 (40 ILCS 5/5-157) (from Ch. 108 1/2, par. 5-157)
25 Sec. 5-157. Administration of disability benefits.
26 If a policeman who is granted duty or ordinary disability
27 benefit refuses to submit to examination by a physician
28 appointed by the board, he shall have no further right to
29 receive the benefit.
30 A policeman who has withdrawn from service while disabled
31 and entered upon annuity prior to the effective date, and who
32 has thereafter been reinstated as a policeman, shall have no
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1 right to ordinary disability benefit in excess of the amount
2 previously received unless he serves at least one year after
3 such reinstatement. This provision shall apply throughout
4 the duration of any disability incurred by the policeman
5 within one year after his reinstatement resulting from any
6 cause other than injury incurred in the performance of an act
7 of duty.
8 A policeman who assumes regular employment for
9 compensation, while in receipt of ordinary or duty disability
10 benefits, shall not be entitled to receive any amount of such
11 disability benefits which, when added to his compensation for
12 such employment during disability, would exceed 150% of the
13 rate of salary which would be paid to him if he were working
14 in his regularly appointed civil service position as a
15 policeman; or, from and after January 1, 1970, the rate of
16 salary on which his disability benefit is based. The changes
17 made to this Section by this amendatory Act of 1998 are not
18 limited to persons in service on or after the effective date
19 of this amendatory Act.
20 Disability benefit shall not be paid for any part of time
21 for which a disabled policeman shall receive any part of his
22 salary.
23 Except as herein otherwise provided, disability benefit
24 shall not be paid for any disability based upon or caused by
25 any mental or physical defect which the policeman had at the
26 time he entered the police service.
27 Disability benefit shall not be allowed to any policeman
28 who re-enters the public service in any capacity where his
29 salary is payable in whole or in part by taxes levied upon
30 taxable property in the city in which this Article is in
31 effect, or out of special revenues of any department of the
32 city. The disability benefit shall be suspended during the
33 period he is in the public service for compensation, and
34 shall be resumed when he withdraws from such service.
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1 Any disability benefit paid in violation of this Section
2 or of this Article shall be construed to have been paid in
3 error, and the amounts so paid shall be charged as a debit in
4 the account of any person to whom the same was paid and shall
5 be deducted from any moneys thereafter payable to such person
6 out of this fund, or to the widow, heirs or estate of such
7 person.
8 (Source: P.A. 76-847.)
9 (40 ILCS 5/5-167.4) (from Ch. 108 1/2, par. 5-167.4)
10 Sec. 5-167.4. Widow annuitant minimum annuity.
11 (a) Notwithstanding any other provision of this Article,
12 beginning January 1, 1996, the minimum amount of widow's
13 annuity payable to any person who is entitled to receive a
14 widow's annuity under this Article is $700 per month, without
15 regard to whether the deceased policeman is in service on or
16 after the effective date of this amendatory Act of 1995.
17 Notwithstanding any other provision of this Article,
18 beginning January 1, 1999, the minimum amount of widow's
19 annuity payable to any person who is entitled to receive a
20 widow's annuity under this Article is $800 per month, without
21 regard to whether the deceased policeman is in service on or
22 after the effective date of this amendatory Act of 1998.
23 (b) Effective January 1, 1994, the minimum amount of
24 widow's annuity shall be $700 per month for the following
25 classes of widows, without regard to whether the deceased
26 policeman is in service on or after the effective date of
27 this amendatory Act of 1993: (1) the widow of a policeman who
28 dies in service with at least 10 years of service credit, or
29 who dies in service after June 30, 1981; and (2) the widow of
30 a policeman who withdraws from service with 20 or more years
31 of service credit and does not withdraw a refund, provided
32 that the widow is married to the policeman before he
33 withdraws from service.
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1 (c) The city, in addition to the contributions otherwise
2 made by it under the other provisions of this Article, shall
3 make such contributions as are necessary for the minimum
4 widow's annuities provided under this Section in the manner
5 prescribed in Section 5-175.
6 (Source: P.A. 89-12, eff. 4-20-95.)
7 (40 ILCS 5/5-168) (from Ch. 108 1/2, par. 5-168)
8 Sec. 5-168. Financing.
9 (a) Except as expressly provided in this Section, the
10 city shall levy a tax annually upon all taxable property
11 therein for the purpose of providing revenue for the fund.
12 The tax shall be at a rate that will produce a sum which,
13 when added to the amounts deducted from the policemen's
14 salaries and the amounts deposited in accordance with
15 subsection (g), is sufficient for the purposes of the fund.
16 For the years 1968 and 1969, the city council shall levy
17 a tax annually at a rate on the dollar of the assessed
18 valuation of all taxable property that will produce, when
19 extended, not to exceed $9,700,000. Beginning with the year
20 1970 and each year thereafter the city council shall levy a
21 tax annually at a rate on the dollar of the assessed
22 valuation of all taxable property that will produce when
23 extended an amount not to exceed the total amount of
24 contributions by the policemen to the Fund made in the
25 calendar year 2 years before the year for which the
26 applicable annual tax is levied, multiplied by 1.40 for the
27 tax levy year 1970; by 1.50 for the year 1971; by 1.65 for
28 1972; by 1.85 for 1973; by 1.90 for 1974; by 1.97 for 1975
29 through 1981; by 2.00 for 1982 and for each year thereafter.
30 (b) The tax shall be levied and collected in like manner
31 with the general taxes of the city, and is in addition to all
32 other taxes which the city is now or may hereafter be
33 authorized to levy upon all taxable property therein, and is
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1 exclusive of and in addition to the amount of tax the city is
2 now or may hereafter be authorized to levy for general
3 purposes under any law which may limit the amount of tax
4 which the city may levy for general purposes. The county
5 clerk of the county in which the city is located, in reducing
6 tax levies under Section 8-3-1 of the Illinois Municipal
7 Code, shall not consider the tax herein authorized as a part
8 of the general tax levy for city purposes, and shall not
9 include the tax in any limitation of the percent of the
10 assessed valuation upon which taxes are required to be
11 extended for the city.
12 (c) On or before January 10 of each year, the board
13 shall notify the city council of the requirement that the tax
14 herein authorized be levied by the city council for that
15 current year. The board shall compute the amounts necessary
16 for the purposes of this fund to be credited to the reserves
17 established and maintained within the fund; shall make an
18 annual determination of the amount of the required city
19 contributions; and shall certify the results thereof to the
20 city council.
21 As soon as any revenue derived from the tax is collected
22 it shall be paid to the city treasurer of the city and shall
23 be held by him for the benefit of the fund in accordance with
24 this Article.
25 (d) If the funds available are insufficient during any
26 year to meet the requirements of this Article, the city may
27 issue tax anticipation warrants against the tax levy for the
28 current fiscal year.
29 (e) The various sums, including interest, to be
30 contributed by the city, shall be taken from the revenue
31 derived from such tax or otherwise as expressly provided in
32 this Section. Any moneys of the city derived from any source
33 other than the tax herein authorized shall not be used for
34 any purpose of the fund nor the cost of administration
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1 thereof, unless applied to make the deposit expressly
2 authorized in this Section or the additional city
3 contributions required under subsection (h).
4 (f) If it is not possible or practicable for the city to
5 make its contributions at the time that salary deductions are
6 made, the city shall make such contributions as soon as
7 possible thereafter, with interest thereon to the time it is
8 made.
9 (g) In lieu of levying all or a portion of the tax
10 required under this Section in any year, the city may deposit
11 with the city treasurer no later than March 1 of that year
12 for the benefit of the fund, to be held in accordance with
13 this Article, an amount that, together with the taxes levied
14 under this Section for that year, is not less than the amount
15 of the city contributions for that year as certified by the
16 board to the city council. The deposit may be derived from
17 any source legally available for that purpose, including, but
18 not limited to, the proceeds of city borrowings. The making
19 of a deposit shall satisfy fully the requirements of this
20 Section for that year to the extent of the amounts so
21 deposited. Amounts deposited under this subsection may be
22 used by the fund for any of the purposes for which the
23 proceeds of the tax levied under this Section may be used,
24 including the payment of any amount that is otherwise
25 required by this Article to be paid from the proceeds of that
26 tax.
27 (h) In addition to the contributions required under the
28 other provisions of this Article, by November 1 of the
29 following specified years, the city shall deposit with the
30 city treasurer for the benefit of the fund, to be held and
31 used in accordance with this Article, the following specified
32 amounts: $6,300,000 in 1999; $5,880,000 in 2000; $5,460,000
33 in 2001; $5,040,000 in 2002; $4,620,000 in 2003; $4,200,000
34 in 2004; $3,780,000 in 2005; $3,360,000 in 2006; $2,940,000
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1 in 2007; $2,520,000 in 2008; $2,100,000 in 2009; $1,680,000
2 in 2010; $1,260,000 in 2011; $840,000 in 2012; and $420,000
3 in 2013.
4 The additional city contributions required under this
5 subsection are intended to decrease the unfunded liability of
6 the fund and shall not decrease the amount of the city
7 contributions required under the other provisions of this
8 Article. The additional city contributions made under this
9 subsection may be used by the fund for any of its lawful
10 purposes.
11 (Source: P.A. 89-12, eff. 4-20-95.)
12 (40 ILCS 5/5-172) (from Ch. 108 1/2, par. 5-172)
13 Sec. 5-172. Contributions by city for duty and
14 occupational disease disability benefits and supplemental
15 annuity. In lieu of salary deductions for annuity purposes,
16 the city shall contribute the required amounts for any period
17 during which a policeman receives a duty disability benefit
18 or occupational disease disability benefit. The
19 contributions shall be credited to the disabled policeman and
20 shall be regarded for all purposes hereof as sums deducted
21 from his salary.
22 The city shall also contribute all amounts ordinarily
23 contributed by it for annuity purposes for the policeman as
24 though he were in active discharge of his duties during such
25 disability.
26 To provide supplemental annuity, the city shall
27 contribute such equal sums annually, from the date of the
28 policeman's death, which if improved by interest will be
29 sufficient, when payment of compensation annuity ceases, to
30 provide supplemental annuity to the widow for life.
31 (Source: P.A. 81-1536.)
32 (40 ILCS 5/5-204) (from Ch. 108 1/2, par. 5-204)
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1 Sec. 5-204. Duty disability reserve. Amounts contributed
2 by the city for duty disability benefit, occupational disease
3 disability benefit, child's disability benefit, and
4 compensation annuity shall be credited to this reserve, and
5 all such benefits and annuities shall be charged to it.
6 (Source: Laws 1963, p. 161.)
7 (40 ILCS 5/6-128.4) (from Ch. 108 1/2, par. 6-128.4)
8 Sec. 6-128.4. Minimum widow's annuities.
9 (a) Notwithstanding any other provision of this Article,
10 beginning January 1, 1996, the minimum amount of widow's
11 annuity payable to any person who is entitled to receive a
12 widow's annuity under this Article is $700 per month, without
13 regard to whether the deceased fireman is in service on or
14 after the effective date of this amendatory Act of 1995.
15 (b) Notwithstanding Section 6-128.3, beginning January
16 1, 1994, the minimum widow's annuity under this Article shall
17 be $700 per month for (1) all persons receiving widow's
18 annuities on that date who are survivors of employees who
19 retired at age 50 or over with at least 20 years of service,
20 and (2) persons who become eligible for widow's annuities and
21 are survivors of employees who retired at age 50 or over with
22 at least 20 years of service.
23 (c) Notwithstanding Section 6-128.3, beginning January
24 1, 1999, the minimum widow's annuity under this Article shall
25 be $800 per month for (1) all persons receiving widow's
26 annuities on that date who are survivors of employees who
27 retired at age 50 or over with at least 20 years of service,
28 and (2) persons who become eligible for widow's annuities and
29 are survivors of employees who retired at age 50 or over with
30 at least 20 years of service.
31 (Source: P.A. 89-136, eff. 7-14-95.)
32 (40 ILCS 5/6-165) (from Ch. 108 1/2, par. 6-165)
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1 Sec. 6-165. Financing; tax.
2 (a) Except as expressly provided in this Section, each
3 city shall levy a tax annually upon all taxable property
4 therein for the purpose of providing revenue for the fund.
5 For the years prior to the year 1960, the tax rate shall be
6 as provided for in the "Firemen's Annuity and Benefit Fund of
7 the Illinois Municipal Code". The tax, from and after
8 January 1, 1968 to and including the year 1971, shall not
9 exceed .0863% of the value, as equalized or assessed by the
10 Department of Revenue, of all taxable property in the city.
11 Beginning with the year 1972 and each year thereafter the
12 city shall levy a tax annually at a rate on the dollar of the
13 value, as equalized or assessed by the Department of Revenue
14 of all taxable property within such city that will produce,
15 when extended, not to exceed an amount equal to the total
16 amount of contributions by the employees to the fund made in
17 the calendar year 2 years prior to the year for which the
18 annual applicable tax is levied, multiplied by 2.23 through
19 the calendar year 1981, and by 2.26 for the year 1982 and for
20 each year thereafter.
21 To provide revenue for the ordinary death benefit
22 established by Section 6-150 of this Article, in addition to
23 the contributions by the firemen for this purpose, the city
24 council shall for the year 1962 and each year thereafter
25 annually levy a tax, which shall be in addition to and
26 exclusive of the taxes authorized to be levied under the
27 foregoing provisions of this Section, upon all taxable
28 property in the city, as equalized or assessed by the
29 Department of Revenue, at such rate per cent of the value of
30 such property as shall be sufficient to produce for each year
31 the sum of $142,000.
32 The amounts produced by the taxes levied annually,
33 together with the deposit expressly authorized in this
34 Section, shall be sufficient, when added to the amounts
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1 deducted from the salaries of firemen and applied to the
2 fund, to provide for the purposes of the fund.
3 (b) The taxes shall be levied and collected in like
4 manner with the general taxes of the city, and shall be in
5 addition to all other taxes which the city may levy upon all
6 taxable property therein and shall be exclusive of and in
7 addition to the amount of tax the city may levy for general
8 purposes under Section 8-3-1 of the Illinois Municipal Code,
9 approved May 29, 1961, as amended, or under any other law or
10 laws which may limit the amount of tax which the city may
11 levy for general purposes.
12 (c) The amounts of the taxes to be levied in each year
13 shall be certified to the city council by the board.
14 (d) As soon as any revenue derived from such taxes is
15 collected, it shall be paid to the city treasurer and held
16 for the benefit of the fund, and all such revenue shall be
17 paid into the fund in accordance with the provisions of this
18 Article.
19 (e) If the funds available are insufficient during any
20 year to meet the requirements of this Article, the city may
21 issue tax anticipation warrants, against the tax levies
22 herein authorized for the current fiscal year.
23 (f) The various sums, hereinafter stated, including
24 interest, to be contributed by the city, shall be taken from
25 the revenue derived from the taxes or otherwise as expressly
26 provided in this Section. Except for defraying the cost of
27 administration of the fund during the calendar year in which
28 a city first attains a population of 500,000 and comes under
29 the provisions of this Article and the first calendar year
30 thereafter, any money of the city derived from any source
31 other than these taxes or the sale of tax anticipation
32 warrants shall not be used to provide revenue for the fund,
33 nor to pay any part of the cost of administration thereof,
34 unless applied to make the deposit expressly authorized in
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1 this Section or the additional city contributions required
2 under subsection (h).
3 (g) In lieu of levying all or a portion of the tax
4 required under this Section in any year, the city may deposit
5 with the city treasurer no later than March 1 of that year
6 for the benefit of the fund, to be held in accordance with
7 this Article, an amount that, together with the taxes levied
8 under this Section for that year, is not less than the amount
9 of the city contributions for that year as certified by the
10 board to the city council. The deposit may be derived from
11 any source legally available for that purpose, including, but
12 not limited to, the proceeds of city borrowings. The making
13 of a deposit shall satisfy fully the requirements of this
14 Section for that year to the extent of the amounts so
15 deposited. Amounts deposited under this subsection may be
16 used by the fund for any of the purposes for which the
17 proceeds of the taxes levied under this Section may be used,
18 including the payment of any amount that is otherwise
19 required by this Article to be paid from the proceeds of
20 those taxes.
21 (h) In addition to the contributions required under the
22 other provisions of this Article, by November 1 of the
23 following specified years, the city shall deposit with the
24 city treasurer for the benefit of the fund, to be held and
25 used in accordance with this Article, the following specified
26 amounts: $6,300,000 in 1999; $5,880,000 in 2000; $5,460,000
27 in 2001; $5,040,000 in 2002; $4,620,000 in 2003; $4,200,000
28 in 2004; $3,780,000 in 2005; $3,360,000 in 2006; $2,940,000
29 in 2007; $2,520,000 in 2008; $2,100,000 in 2009; $1,680,000
30 in 2010; $1,260,000 in 2011; $840,000 in 2012; and $420,000
31 in 2013.
32 The additional city contributions required under this
33 subsection are intended to decrease the unfunded liability of
34 the fund and shall not decrease the amount of the city
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1 contributions required under the other provisions of this
2 Article. The additional city contributions made under this
3 subsection may be used by the fund for any of its lawful
4 purposes.
5 (Source: P.A. 89-136, eff. 7-14-95.)
6 (40 ILCS 5/7-146) (from Ch. 108 1/2, par. 7-146)
7 Sec. 7-146. Temporary disability benefits - Eligibility.
8 Temporary disability benefits shall be payable to
9 participating employees as hereinafter provided.
10 (a) The participating employee shall be considered
11 temporarily disabled if:
12 1. He is unable to perform the duties of any position
13 which might reasonably be assigned to him by his employing
14 municipality or instrumentality thereof or participating
15 instrumentality due to mental or physical disability caused
16 by bodily injury or disease, other than as a result of
17 self-inflicted injury or addiction to narcotic drugs;
18 2. The Board has received written certifications from at
19 least 1 licensed and practicing physician and the governing
20 body of the employing municipality or instrumentality thereof
21 or participating instrumentality stating that the employee
22 meets the conditions set forth in subparagraph 1 of this
23 paragraph (a).
24 (b) A temporary disability benefit shall be payable to a
25 temporarily disabled employee provided:
26 1. He:
27 (i) has at least one 1 year of service immediately
28 preceding at the date the temporary disability was incurred
29 and has made contributions to the fund for at least the
30 number of months of service normally required in his position
31 during a 12-month period, or has at least 5 years of service
32 credit, the last year of which immediately precedes such
33 date; or
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1 (ii) had qualified under clause (i) above, but had an
2 interruption in service with the same participating
3 municipality or participating instrumentality of not more
4 than 3 months in the 12 months preceding the date the
5 temporary disability was incurred and was not paid a
6 separation benefit; or
7 (iii) had qualified under clause (i) above, but had an
8 interruption after 20 or more years of creditable service,
9 was not paid a separation benefit, and returned to service
10 prior to the date the disability was incurred.
11 Item (iii) of this subdivision shall apply to all
12 employees whose disabilities were incurred on or after July
13 1, 1985, and any such employee who becomes eligible for a
14 disability benefit under item (iii) shall be entitled to
15 receive a lump sum payment of any accumulated disability
16 benefits which may accrue from the date the disability was
17 incurred until the effective date of this amendatory Act of
18 1987.
19 Periods of qualified leave granted in compliance with the
20 federal Family and Medical Leave Act shall be ignored for
21 purposes of determining the number of consecutive months of
22 employment under this subdivision (b)1.
23 2. He has been temporarily disabled for at least 30
24 days, except where a former temporary or permanent and total
25 disability has reoccurred within 6 months after the employee
26 has returned to service.
27 3. He is receiving no earnings from a participating
28 municipality or instrumentality thereof or participating
29 instrumentality, except as allowed under subsection (f) of
30 Section 7-152.
31 4. He has not refused to submit to a reasonable physical
32 examination by a physician appointed by the Board.
33 5. His disability is not the result of a mental or
34 physical condition which existed on the earliest date of
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1 service from which he has uninterrupted service, including
2 prior service, at the date of his disability, provided that
3 this limitation shall not be applicable to a participating
4 employee who: (i) on the date of disability has 5 years of
5 creditable service, exclusive of creditable service for
6 periods of disability; or (ii) received no medical treatment
7 for the condition for the 3 years immediately prior to such
8 earliest date of service.
9 6. He is not separated from the service of the
10 participating municipality or instrumentality thereof or
11 participating instrumentality which employed him on the date
12 his temporary disability was incurred; for the purposes of
13 payment of temporary disability benefits, a participating
14 employee, whose employment relationship is terminated by his
15 employing municipality, shall be deemed not to be separated
16 from the service of his employing municipality or
17 participating instrumentality if he continues disabled by the
18 same condition and so long as he is otherwise entitled to
19 such disability benefit.
20 (Source: P.A. 86-272; 87-740.)
21 (40 ILCS 5/7-150) (from Ch. 108 1/2, par. 7-150)
22 Sec. 7-150. Total and permanent disability benefits -
23 Eligibility. Total and permanent disability benefits shall be
24 payable to participating employees as hereinafter provided,
25 including those employees receiving disability benefit on
26 July 1, 1962.
27 (a) A participating employee shall be considered totally
28 and permanently disabled if:
29 1. He is unable to engage in any gainful activity
30 because of any medically determinable physical or mental
31 impairment which can be expected to result in death or be of
32 a long continued and indefinite duration, other than as a
33 result of self-inflicted injury or addiction to narcotic
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1 drugs;
2 2. The Board has received a written certification by at
3 least 1 licensed and practicing physician stating that the
4 employee meets the qualifications of subparagraph 1 of this
5 paragraph (a).
6 (b) A totally and permanently disabled employee is
7 entitled to a permanent disability benefit provided:
8 1. He has exhausted his temporary disability benefits.
9 2. He:
10 (i) has at least one year of service immediately
11 preceding the date the disability was incurred and has made
12 contributions to the fund for at least the number of months
13 of service normally required in his position during a 12
14 month period, or has at least 5 years of service credit, the
15 last year of which immediately preceded the date the
16 disability was incurred; or
17 (ii) had qualified under clause (i) above, but had an
18 interruption in service with the same participating
19 municipality or participating instrumentality of not more
20 than 3 months in the 12 months preceding the date the
21 temporary disability was incurred and was not paid a
22 separation benefit; or
23 (iii) had qualified under clause (i) above, but had an
24 interruption after 20 or more years of creditable service,
25 was not paid a separation benefit, and returned to service
26 prior to the date the disability was incurred.
27 Item (iii) of this subdivision shall apply to all
28 employees whose disabilities were incurred on or after July
29 1, 1985, and any such employee who becomes eligible for a
30 disability benefit under item (iii) shall be entitled to
31 receive a lump sum payment of any accumulated disability
32 benefits which may accrue from the date the disability was
33 incurred until the effective date of this amendatory Act of
34 1987.
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1 Periods of qualified leave granted in compliance with the
2 federal Family and Medical Leave Act shall be ignored for
3 purposes of determining the number of consecutive months of
4 employment under this subdivision (b)2.
5 3. He is receiving no earnings from a participating
6 municipality or instrumentality thereof or participating
7 instrumentality, except as allowed under subsection (f) of
8 Section 7-152.
9 4. He has not refused to submit to a reasonable physical
10 examination by a physician appointed by the Board.
11 5. His disability is not the result of a mental or
12 physical condition which existed on the earliest date of
13 service from which he has uninterrupted service, including
14 prior service, at the date of his disability, provided that
15 this limitation shall not be applicable to a participating
16 employee who, without receiving a disability benefit,
17 receives 5 years of creditable service.
18 6. He is not separated from the service of his employing
19 participating municipality or instrumentality thereof or
20 participating instrumentality on the date his temporary
21 disability was incurred; for the purposes of payment of total
22 and permanent disability benefits, a participating employee,
23 whose employment relationship is terminated by his employing
24 municipality, shall be deemed not to be separated from the
25 service of his employing municipality or participating
26 instrumentality if he continues disabled by the same
27 condition and so long as he is otherwise entitled to such
28 disability benefit.
29 7. He has not refused to apply for a disability benefit
30 under the Federal Social Security Act at the request of the
31 Board.
32 (c) A participating employee shall remain eligible and
33 may make application for a total and permanent disability
34 benefit within 90 days after the termination of his temporary
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1 disability benefits or within such longer period terminating
2 at the end of the period during which his employing
3 municipality is prevented from employing him by reason of any
4 statutory prohibition.
5 (Source: P.A. 86-272; 87-740.)
6 (40 ILCS 5/7-159) (from Ch. 108 1/2, par. 7-159)
7 Sec. 7-159. Surviving spouse annuity - refund of survivor
8 credits.
9 (a) Any employee annuitant who (1) upon the date a
10 retirement annuity begins is not then married, or (2) is
11 married to a person who would not qualify for surviving
12 spouse annuity if the person died on such date, is entitled
13 to a refund of the survivor credits including interest
14 accumulated on the date the annuity begins, excluding
15 survivor credits and interest thereon credited during periods
16 of disability, and no spouse shall have a right to any
17 surviving spouse annuity from this Fund. If the employee
18 annuitant reenters service and upon subsequent retirement has
19 a spouse who would qualify for a surviving spouse annuity,
20 the employee annuitant may pay the fund the amount of the
21 refund plus interest at the effective rate at the date of
22 payment. The payment shall qualify the spouse for a
23 surviving spouse annuity and the amount paid shall be
24 considered as survivor contributions.
25 (b) Instead of a refund under subsection (a), the
26 retiring employee may elect to convert the amount of the
27 refund into an annuity, payable separately from the
28 retirement annuity. If the annuitant dies before the
29 guaranteed amount has been distributed, the remainder shall
30 be paid in a lump sum to the designated beneficiary of the
31 annuitant. The Board shall adopt any rules necessary for the
32 implementation of this subsection.
33 (Source: P. A. 77-2121.)
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1 (40 ILCS 5/7-173.1) (from Ch. 108 1/2, par. 7-173.1)
2 Sec. 7-173.1. Additional contribution by sheriff's law
3 enforcement employees.
4 (a) Each sheriff's law enforcement employee shall make
5 an additional contribution of 1% of earnings, which shall be
6 considered as normal contributions. For earnings on or after
7 July 1, 1988, the additional contribution shall be 2% of
8 earnings.
9 This additional contribution shall be payable for
10 retroactive service periods which the employee elects to
11 establish and to periods of authorized leave of absence.
12 (b) If the employee is awarded a retirement annuity
13 under Section 7-142 and not under Section 7-142.1, then the
14 additional contribution required under this Section shall be
15 refunded with interest or paid as provided in subsection (c).
16 If the employee returns to a participating status as a
17 sheriff's law enforcement employee, the employee may repay
18 the amount refunded with interest and upon subsequent
19 retirement be entitled to a recomputation of the retirement
20 annuity under Section 7-142.1 if the total service as a
21 sheriff's law enforcement employee meets the requirements of
22 that Section.
23 (c) Instead of a refund under subsection (b), the
24 retiring employee may elect to convert the amount of the
25 refund into an annuity, payable separately from the
26 retirement annuity. If the annuitant dies before the
27 guaranteed amount has been distributed, the remainder shall
28 be paid in a lump sum to the designated beneficiary of the
29 annuitant. The Board shall adopt any rules necessary for the
30 implementation of this subsection.
31 (Source: P.A. 85-941.)
32 (40 ILCS 5/7-173.2) (from Ch. 108 1/2, par. 7-173.2)
33 Sec. 7-173.2. Pickup of employee contributions.
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1 (a) Until July 1, 1984, each participating municipality
2 and each participating instrumentality may elect, for all of
3 its employees, to pick up the employee contributions required
4 by subparagraphs 1 and 3 of subsection (a) of Section 7-173
5 and, in the case of sheriff's law enforcement employees,
6 required by Section 7-173.1. The pick up may be for employee
7 contributions on earnings received by employees after
8 December 31, 1981 and shall be applicable to the
9 contributions on total earnings paid in any month. The
10 decision to pick up contributions shall be made by the
11 governing body.
12 Beginning July 1, 1984, the pick up of employee
13 contributions shall cease to be optional. Each participating
14 municipality and participating instrumentality shall pick up
15 the employee contributions required by subparagraphs 1 and 3
16 of subsection (a) of Section 7-173 and, in the case of
17 sheriff's law enforcement employees, contributions required
18 by Section 7-173.1, for all compensation earned after such
19 date.
20 (b) Contributions that are picked up shall be treated as
21 employer contributions in determining tax treatment under the
22 United States Internal Revenue Code. The employee
23 contribution shall be paid from the same source of funds as
24 is used in payment of earnings to the employee and may not be
25 paid from funds raised by the tax levy authorized by Section
26 7-171. The contributions shall be picked up by a reduction
27 in earnings payment to employees. Employee contributions
28 that are picked up shall be considered as earnings under
29 Section 7-114. The pick up shall not apply to contributions
30 made for additional contributions under subsection (a) 2 of
31 Section 7-173, authorized leave of absence under subsection
32 (a)4 of Section 7-139, out-of-state service under subsection
33 (a) 6 of Section 7-139, retroactive service under subsection
34 (a) 7 of Section 7-139 or repayments of separation of
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1 benefits under Section 7-109. If a participating
2 municipality or participating instrumentality fails to report
3 participating employee earnings which should have been
4 reported to the fund and pays the employee the full amount of
5 earnings including employee contributions which should have
6 been picked up and forwarded to the fund, then the employee
7 shall make payment of the employee contributions to the fund
8 on behalf of employer and such contributions shall be
9 considered as picked up contributions if paid in the year the
10 earnings were received, or by January 31st of the following
11 year, and are reflected as picked up on reports to the
12 Internal Revenue Service. If they cannot be so reflected, or
13 if received after that date, they shall not be treated as
14 picked up contributions. Picked up employee contributions
15 shall be considered as employee contributions in computing
16 benefits paid under this Article 7.
17 (c) Subject to the requirements of federal law, an
18 employee may elect to have the employer pick up optional
19 contributions that the employee has elected to pay to the
20 Fund, and the contributions so picked up shall be treated as
21 employer contributions for the purposes of determining
22 federal tax treatment. The employer shall pick up the
23 contributions by a reduction in the cash salary of the
24 employee and shall pay the contributions from the same source
25 of funds that is used to pay earnings to the employee. The
26 employee's election to have the optional contributions picked
27 up is irrevocable and the optional contributions may not
28 thereafter be prepaid, by direct payment or otherwise.
29 (Source: P.A. 84-812.)
30 (40 ILCS 5/8-137) (from Ch. 108 1/2, par. 8-137)
31 Sec. 8-137. Automatic increase in annuity.
32 (a) An employee who retired or retires from service
33 after December 31, 1959 and before January 1, 1987, having
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1 attained age 60 or more, shall, in January of the year after
2 the year in which the first anniversary of retirement occurs,
3 have the amount of his then fixed and payable monthly annuity
4 increased by 1 1/2%, and such first fixed annuity as granted
5 at retirement increased by a further 1 1/2% in January of
6 each year thereafter. Beginning with January of the year
7 1972, such increases shall be at the rate of 2% in lieu of
8 the aforesaid specified 1 1/2%, and beginning with January of
9 the year 1984 such increases shall be at the rate of 3%.
10 Beginning in January of 1999, such increases shall be at the
11 rate of 3% of the currently payable monthly annuity,
12 including any increases previously granted under this
13 Article. An such employee who retires on annuity after
14 December 31, 1959 and before January 1, 1987, but before age
15 60, shall receive such increases beginning in January of the
16 year after the year in which he attains age 60.
17 An employee who retires from service on or after January
18 1, 1987 shall, upon the first annuity payment date following
19 the first anniversary of the date of retirement, or upon the
20 first annuity payment date following attainment of age 60,
21 whichever occurs later, have his then fixed and payable
22 monthly annuity increased by 3%, and such annuity shall be
23 increased by an additional 3% of the original fixed annuity
24 on the same date each year thereafter. Beginning in January
25 of 1999, such increases shall be at the rate of 3% of the
26 currently payable monthly annuity, including any increases
27 previously granted under this Article.
28 (b) The foregoing provision is not applicable to an
29 employee retiring and receiving a term annuity, as herein
30 defined, nor to any otherwise qualified employee who retires
31 before he makes employee contributions (at the 1/2 of 1% rate
32 as provided in this Act) for this additional annuity for not
33 less than the equivalent of one full year. Such employee,
34 however, shall make arrangement to pay to the fund a balance
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1 of such 1/2 of 1% contributions, based on his final salary,
2 as will bring such 1/2 of 1% contributions, computed without
3 interest, to the equivalent of or completion of one year's
4 contributions.
5 Beginning with January, 1960, each employee shall
6 contribute by means of salary deductions 1/2 of 1% of each
7 salary payment, concurrently with and in addition to the
8 employee contributions otherwise made for annuity purposes.
9 Each such additional contribution shall be credited to an
10 account in the prior service annuity reserve, to be used,
11 together with city contributions, to defray the cost of the
12 specified annuity increments. Any balance in such account at
13 the beginning of each calendar year shall be credited with
14 interest at the rate of 3% per annum.
15 Such additional employee contributions are not
16 refundable, except to an employee who withdraws and applies
17 for refund under this Article, and in cases where a term
18 annuity becomes payable. In such cases his contributions
19 shall be refunded, without interest, and charged to such
20 account in the prior service annuity reserve.
21 (Source: P.A. 84-1472.)
22 (40 ILCS 5/8-137.1) (from Ch. 108 1/2, par. 8-137.1)
23 Sec. 8-137.1. Automatic increases in annuity for certain
24 heretofore retired participants. A retired municipal
25 employee who (a) is receiving annuity based on a service
26 credit of 20 or more years regardless of age at retirement or
27 based on a service credit of 15 or more years with retirement
28 at age 55 or over, and (b) does not qualify for the automatic
29 increases in annuity provided for in Section 8-137 of this
30 Article, and (c) elects to make a contribution to the Fund at
31 a time and manner prescribed by the Retirement Board, of a
32 sum equal to 1% of the amount of final monthly salary times
33 the number of full years of service on which the annuity was
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1 based in those cases where the annuity was computed on the
2 money purchase formula and in those cases in which the
3 annuity was computed under the minimum annuity formula
4 provisions of this Article a sum equal to 1% of the average
5 monthly salary on which the annuity was based times such
6 number of full years of service, shall have his original
7 fixed and payable monthly amount of annuity increased in
8 January of the year following the year in which he attains
9 the age of 65 years, if such age of 65 years is attained in
10 the year 1969 or later, by an amount equal to 1-1/2%, and by
11 an equal additional 1-1/2% in January of each year
12 thereafter. Beginning with January of the year 1972, such
13 increases shall be at the rate of 2% in lieu of the aforesaid
14 specified 1 1/2%, and beginning January of the year 1984 such
15 increases shall be at the rate of 3%. Beginning in January
16 of 1999, such increases shall be at the rate of 3% of the
17 currently payable monthly annuity, including any increases
18 previously granted under this Article.
19 Whenever the retired municipal employee receiving annuity
20 has attained the age of 66 or more in 1969, he shall have
21 such annuity increased in January, 1970 by an amount equal to
22 1-1/2% multiplied by the number equal to the number of months
23 of January elapsing from and including January of the year
24 immediately following the year he attained the age of 65 if
25 retired at or before age 65, or from and including January of
26 the year immediately following the year of retirement if
27 retired at an age greater than 65, to and including January,
28 1970, and by an equal additional 1-1/2% in January of each
29 year thereafter. Beginning with January of the year 1972,
30 such increases shall be at the rate of 2% in lieu of the
31 aforesaid specified 1 1/2%, and beginning January of the year
32 1984 such increases shall be at the rate of 3%. Beginning in
33 January of 1999, such increases shall be at the rate of 3% of
34 the currently payable monthly annuity, including any
HB3515 Enrolled -34- LRB9011159EGfg
1 increases previously granted under this Article.
2 To defray the annual cost of such increases, the annual
3 interest income of the Fund, accruing from investments held
4 by the Fund, exclusive of gains or losses on sales or
5 exchanges of assets during the year, over and above 4% a
6 year, shall be used to the extent necessary and available to
7 finance the cost of such increases for the following year,
8 and such amount shall be transferred as of the end of each
9 year, beginning with the year 1969, to a Fund account
10 designated as the Supplementary Payment Reserve from the
11 Investment and Interest Reserve set forth in Section 8-221.
12 The sums contributed by annuitants as provided for in this
13 Section shall also be placed in the aforesaid Supplementary
14 Payment Reserve and shall be applied and used for the
15 purposes of such Fund account, together with the aforesaid
16 interest.
17 In the event the monies in the Supplementary Payment
18 Reserve in any year arising from: (1) the available interest
19 income as defined hereinbefore and accruing in the preceding
20 year above 4% a year and (2) the contributions by retired
21 persons, as set forth hereinbefore, are insufficient to make
22 the total payments to all persons estimated to be entitled to
23 the annuity increases specified hereinbefore, then (3) any
24 interest earnings over 4% a year beginning with the year 1969
25 which were not previously used to finance such increases and
26 which were transferred to the Prior Service Annuity Reserve
27 may be used to the extent necessary and available to provide
28 sufficient funds to finance such increases for the current
29 year, and such sums shall be transferred from the Prior
30 Service Annuity Reserve.
31 In the event the total monies available in the
32 Supplementary Payment Reserve from the preceding indicated
33 sources are insufficient to make the total payments to all
34 persons entitled to such increases for the year, a
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1 proportionate amount computed as the ratio of the monies
2 available to the total of the total payments for that year
3 shall be paid to each person for that year.
4 The Fund shall be obligated for the payment of the
5 increases in annuity as provided for in this Section only to
6 the extent that the assets for such purpose, as specified
7 herein, are available.
8 (Source: P.A. 83-802.)
9 (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
10 Sec. 8-138. Minimum annuities - Additional provisions.
11 (a) An employee who withdraws after age 65 or more with
12 at least 20 years of service, for whom the amount of age and
13 service and prior service annuity combined is less than the
14 amount stated in this Section, shall from the date of
15 withdrawal, instead of all annuities otherwise provided, be
16 entitled to receive an annuity for life of $150 a year, plus
17 1 1/2% for each year of service, to and including 20 years,
18 and 1 2/3% for each year of service over 20 years, of his
19 highest average annual salary for any 4 consecutive years
20 within the last 10 years of service immediately preceding the
21 date of withdrawal.
22 An employee who withdraws after 20 or more years of
23 service, before age 65, shall be entitled to such annuity, to
24 begin not earlier than upon attained age of 55 years if under
25 such age at withdrawal, reduced by 2% for each full year or
26 fractional part thereof that his attained age is less than
27 65, plus an additional 2% reduction for each full year or
28 fractional part thereof that his attained age when annuity is
29 to begin is less than 60 so that the total reduction at age
30 55 shall be 30%.
31 (b) An employee who withdraws after July 1, 1957, at age
32 60 or over, with 20 or more years of service, for whom the
33 age and service and prior service annuity combined, is less
HB3515 Enrolled -36- LRB9011159EGfg
1 than the amount stated in this paragraph, shall, from the
2 date of withdrawal, instead of such annuities, be entitled to
3 receive an annuity for life equal to 1 2/3% for each year of
4 service, of the highest average annual salary for any 5
5 consecutive years within the last 10 years of service
6 immediately preceding the date of withdrawal; provided, that
7 in the case of any employee who withdraws on or after July 1,
8 1971, such employee age 60 or over with 20 or more years of
9 service, shall receive an annuity for life equal to 1.67% for
10 each of the first 10 years of service; 1.90% for each of the
11 next 10 years of service; 2.10% for each year of service in
12 excess of 20 but not exceeding 30; and 2.30% for each year of
13 service in excess of 30, based on the highest average annual
14 salary for any 4 consecutive years within the last 10 years
15 of service immediately preceding the date of withdrawal.
16 An employee who withdraws after July 1, 1957 and before
17 January 1, 1988, with 20 or more years of service, before age
18 60 years is entitled to annuity, to begin not earlier than
19 upon attained age of 55 years, if under such age at
20 withdrawal, as computed in the last preceding paragraph,
21 reduced 0.25% for each full month or fractional part thereof
22 that his attained age when annuity is to begin is less than
23 60 if the employee was born before January 1, 1936, or 0.5%
24 for each such month if the employee was born on or after
25 January 1, 1936.
26 Any employee born before January 1, 1936, who withdraws
27 with 20 or more years of service, and any employee with 20 or
28 more years of service who withdraws on or after January 1,
29 1988, may elect to receive, in lieu of any other employee
30 annuity provided in this Section, an annuity for life equal
31 to 1.80% for each of the first 10 years of service, 2.00% for
32 each of the next 10 years of service, 2.20% for each year of
33 service in excess of 20 but not exceeding 30, and 2.40% for
34 each year of service in excess of 30, of the highest average
HB3515 Enrolled -37- LRB9011159EGfg
1 annual salary for any 4 consecutive years within the last 10
2 years of service immediately preceding the date of
3 withdrawal, to begin not earlier than upon attained age of 55
4 years, if under such age at withdrawal, reduced 0.25% for
5 each full month or fractional part thereof that his attained
6 age when annuity is to begin is less than 60; except that an
7 employee retiring on or after January 1, 1988, at age 55 or
8 over but less than age 60, having at least 35 years of
9 service, or an employee retiring on or after July 1, 1990, at
10 age 55 or over but less than age 60, having at least 30 years
11 of service, or an employee retiring on or after the effective
12 date of this amendatory Act of 1997, at age 55 or over but
13 less than age 60, having at least 25 years of service, shall
14 not be subject to the reduction in retirement annuity because
15 of retirement below age 60.
16 However, in the case of an employee who retired on or
17 after January 1, 1985 but before January 1, 1988, at age 55
18 or older and with at least 35 years of service, and who was
19 subject under this subsection (b) to the reduction in
20 retirement annuity because of retirement below age 60, that
21 reduction shall cease to be effective January 1, 1991, and
22 the retirement annuity shall be recalculated accordingly.
23 Any employee who withdraws on or after July 1, 1990, with
24 20 or more years of service, may elect to receive, in lieu of
25 any other employee annuity provided in this Section, an
26 annuity for life equal to 2.20% for each year of service of
27 the highest average annual salary for any 4 consecutive years
28 within the last 10 years of service immediately preceding the
29 date of withdrawal, to begin not earlier than upon attained
30 age of 55 years, if under such age at withdrawal, reduced
31 0.25% for each full month or fractional part thereof that his
32 attained age when annuity is to begin is less than 60; except
33 that an employee retiring at age 55 or over but less than age
34 60, having at least 30 years of service, shall not be subject
HB3515 Enrolled -38- LRB9011159EGfg
1 to the reduction in retirement annuity because of retirement
2 below age 60.
3 Any employee who withdraws on or after the effective date
4 of this amendatory Act of 1997 with 20 or more years of
5 service may elect to receive, in lieu of any other employee
6 annuity provided in this Section, an annuity for life equal
7 to 2.20%, for each year of service, of the highest average
8 annual salary for any 4 consecutive years within the last 10
9 years of service immediately preceding the date of
10 withdrawal, to begin not earlier than upon attainment of age
11 55 (age 50 if the employee has at least 30 years of service),
12 reduced 0.25% for each full month or remaining fractional
13 part thereof that the employee's attained age when annuity is
14 to begin is less than 60; except that an employee retiring at
15 age 50 or over with at least 30 years of service or at age 55
16 or over with at least 25 years of service shall not be
17 subject to the reduction in retirement annuity because of
18 retirement below age 60.
19 The maximum annuity payable under part (a) and (b) of
20 this Section shall not exceed 70% of highest average annual
21 salary in the case of an employee who withdraws prior to July
22 1, 1971, and 75% if withdrawal takes place on or after July
23 1, 1971. For the purpose of the minimum annuity provided in
24 this Section $1,500 is considered the minimum annual salary
25 for any year; and the maximum annual salary for the
26 computation of such annuity is $4,800 for any year before
27 1953, $6000 for the years 1953 to 1956, inclusive, and the
28 actual annual salary, as salary is defined in this Article,
29 for any year thereafter.
30 To preserve rights existing on December 31, 1959, for
31 participants and contributors on that date to the fund
32 created by the Court and Law Department Employees' Annuity
33 Act, who became participants in the fund provided for on
34 January 1, 1960, the maximum annual salary to be considered
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1 for such persons for the years 1955 and 1956 is $7,500.
2 (c) For an employee receiving disability benefit, his
3 salary for annuity purposes under paragraphs (a) and (b) of
4 this Section, for all periods of disability benefit
5 subsequent to the year 1956, is the amount on which his
6 disability benefit was based.
7 (d) An employee with 20 or more years of service, whose
8 entire disability benefit credit period expires before
9 attainment of age 55 while still disabled for service, is
10 entitled upon withdrawal to the larger of (1) the minimum
11 annuity provided above, assuming he is then age 55, and
12 reducing such annuity to its actuarial equivalent as of his
13 attained age on such date or (2) the annuity provided from
14 his age and service and prior service annuity credits.
15 (e) The minimum annuity provisions do not apply to any
16 former municipal employee receiving an annuity from the fund
17 who re-enters service as a municipal employee, unless he
18 renders at least 3 years of additional service after the date
19 of re-entry.
20 (f) An employee in service on July 1, 1947, or who
21 became a contributor after July 1, 1947 and before attainment
22 of age 70, who withdraws after age 65, with less than 20
23 years of service for whom the annuity has been fixed under
24 this Article shall, instead of the annuity so fixed, receive
25 an annuity as follows:
26 Such amount as he could have received had the accumulated
27 amounts for annuity been improved with interest at the
28 effective rate to the date of his withdrawal, or to
29 attainment of age 70, whichever is earlier, and had the city
30 contributed to such earlier date for age and service annuity
31 the amount that it would have contributed had he been under
32 age 65, after the date his annuity was fixed in accordance
33 with this Article, and assuming his annuity were computed
34 from such accumulations as of his age on such earlier date.
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1 The annuity so computed shall not exceed the annuity which
2 would be payable under the other provisions of this Section
3 if the employee was credited with 20 years of service and
4 would qualify for annuity thereunder.
5 (g) Instead of the annuity provided in this Article, an
6 employee having attained age 65 with at least 15 years of
7 service who withdraws from service on or after July 1, 1971
8 and whose annuity computed under other provisions of this
9 Article is less than the amount provided under this
10 paragraph, is entitled to a minimum annuity for life equal to
11 1% of the highest average annual salary, as salary is defined
12 and limited in this Section for any 4 consecutive years
13 within the last 10 years of service for each year of service,
14 plus the sum of $25 for each year of service. The annuity
15 shall not exceed 60% of such highest average annual salary.
16 (g-1) Instead of any other retirement annuity provided
17 in this Article, an employee who has at least 10 years of
18 service and withdraws from service on or after January 1,
19 1999 may elect to receive a retirement annuity for life,
20 beginning no earlier than upon attainment of age 60, equal to
21 2.2% of final average salary for each year of service,
22 subject to a maximum of 75% of final average salary. For the
23 purpose of calculating this annuity, "final average salary"
24 means the highest average annual salary for any 4 consecutive
25 years in the last 10 years of service.
26 (h) The minimum annuities provided under this Section
27 shall be paid in equal monthly installments.
28 (i) The amendatory provisions of part (b) and (g) of
29 this Section shall be effective July 1, 1971 and apply in the
30 case of every qualifying employee withdrawing on or after
31 July 1, 1971.
32 (j) The amendatory provisions of this amendatory Act of
33 1985 (P.A. 84-23) relating to the discount of annuity because
34 of retirement prior to attainment of age 60, and to the
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1 retirement formula, for those born before January 1, 1936,
2 shall apply only to qualifying employees withdrawing on or
3 after July 18, 1985.
4 (k) Beginning on January 1, 1999 the effective date of
5 this amendatory Act of 1997, the minimum amount of employee's
6 annuity shall be $850 $550 per month for life for the
7 following classes of employees, without regard to the fact
8 that withdrawal occurred prior to the effective date of this
9 amendatory Act of 1998 1997:
10 (1) any employee annuitant alive and receiving a
11 life annuity on the effective date of this amendatory Act
12 of 1998 1997, except a reciprocal annuity;
13 (2) any employee annuitant alive and receiving a
14 term annuity on the effective date of this amendatory Act
15 of 1998 1997, except a reciprocal annuity;
16 (3) any employee annuitant alive and receiving a
17 reciprocal annuity on the effective date of this
18 amendatory Act of 1998 1997, whose service in this fund
19 is at least 5 years;
20 (4) any employee annuitant withdrawing after age 60
21 on or after the effective date of this amendatory Act of
22 1998 1997, with at least 10 years of service in this
23 fund.
24 The increases granted under items (1), (2) and (3) of
25 this subsection (k) shall not be limited by any other Section
26 of this Act.
27 (Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
28 (40 ILCS 5/8-139) (from Ch. 108 1/2, par. 8-139)
29 Sec. 8-139. Reversionary annuity.
30 (a) An employee, prior to retirement on annuity, may
31 elect to take a lesser amount of annuity and provide, with
32 the actuarial value of the amount by which his annuity is
33 reduced, a reversionary annuity for a wife, husband, parent,
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1 child, brother or sister. The option shall be exercised by
2 filing a written designation with the board prior to
3 retirement, and may be revoked by the employee at any time
4 before retirement. The death of the employee prior to his
5 retirement shall automatically void the option.
6 (b) The death of the designated reversionary annuitant
7 prior to the employee's retirement shall automatically void
8 the option. If the reversionary annuitant dies after the
9 employee's retirement, and before the death of the employee
10 annuitant, the reduced annuity being paid to the retired
11 employee annuitant shall be increased to the amount of
12 annuity before reduction for the reversionary annuity and no
13 reversionary annuity shall be payable.
14 The option is subject to the further condition that no
15 reversionary annuity shall be paid to a parent, child,
16 brother, or sister if the employee dies before the expiration
17 of 365 730 days from the date his written designation was
18 filed with the board, even though he has retired and is
19 receiving a reduced annuity.
20 (c) The employee exercising this option shall not reduce
21 his retirement annuity by more than $400 $200 a month, or
22 elect to provide a reversionary annuity of less than $50 per
23 month. No option shall be permitted if the reversionary
24 annuity for a widow, when added to the widow's annuity
25 payable under this Article, exceeds 100% 80% of the reduced
26 annuity payable to the employee.
27 (d) A reversionary annuity shall begin on the day
28 following the death of the annuitant and shall be paid as
29 provided in Section 8-125.
30 (e) The increases in annuity provided in Section 8-137
31 of this Article shall, as to an employee so electing a
32 reduced annuity relate to the amount of the original annuity,
33 and such amount shall constitute the annuity on which such
34 automatic increases shall be based.
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1 (f) For annuities elected after June 30, 1983, the
2 amount of the monthly reversionary annuity shall be
3 determined by multiplying the amount of the monthly reduction
4 in the employee's annuity by the factor in the following
5 table based on the age of the employee and the difference in
6 the age of the employee and the age of the reversionary
7 annuitant at the starting date of the employee's annuity:
8 Employee's Age
9 Reversionary
10 Annuitant's Age 55-57 58-60 61-63 64-66 67-69 70 &
11 Over
12 30 or more years 2.18 1.84 1.55 1.29 1.08 0.91
13 younger
14 25-29 years younger 2.29 1.94 1.63 1.37 1.15 0.97
15 20-24 years younger 2.44 2.07 1.75 1.48 1.25 1.06
16 15-19 years younger 2.65 2.26 1.92 1.63 1.39 1.19
17 10-14 years younger 2.94 2.53 2.16 1.85 1.59 1.37
18 5-9 years younger 3.35 2.90 2.51 2.16 1.88 1.64
19 0-4 years younger 3.93 3.44 3.00 2.61 2.29 2.02
20 1-5 years older 4.76 4.21 3.71 3.26 2.88 2.56
21 6-10 years older 5.93 5.30 4.71 4.16 3.70 3.29
22 11-15 years older 7.58 6.83 6.11 5.40 4.82 4.32
23 16-20 years older 9.84 8.93 8.02 7.13 6.43 5.87
24 21-25 years older 12.91 11.82 10.73 9.66 8.88 8.35
25 26-30 years older 17.15 15.96 14.80 13.65 12.97 12.82
26 31 or more years 23.34 22.32 21.45 20.62 20.85 23.28
27 older
28 (Source: P.A. 90-31, eff. 6-27-97.)
29 (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
30 Sec. 8-150.1. Minimum annuities for widows. The widow
31 (otherwise eligible for widow's annuity under other Sections
32 of this Article 8) of an employee hereinafter described, who
33 retires from service or dies while in the service subsequent
HB3515 Enrolled -44- LRB9011159EGfg
1 to the effective date of this amendatory provision, and for
2 which widow the amount of widow's annuity and widow's prior
3 service annuity combined, fixed or provided for such widow
4 under other provisions of this Article is less than the
5 amount provided in this Section, shall, from and after the
6 date her otherwise provided annuity would begin, in lieu of
7 such otherwise provided widow's and widow's prior service
8 annuity, be entitled to the following indicated amount of
9 annuity:
10 (a) The widow of any employee who dies while in service
11 on or after the date on which he attains age 60 if the death
12 occurs before July 1, 1990, or on or after the date on which
13 he attains age 55 if the death occurs on or after July 1,
14 1990, with at least 20 years of service, or on or after the
15 date on which he attains age 50 if the death occurs on or
16 after the effective date of this amendatory Act of 1997 with
17 at least 30 years of service, shall be entitled to an annuity
18 equal to one-half of the amount of annuity which her deceased
19 husband would have been entitled to receive had he withdrawn
20 from the service on the day immediately preceding the date of
21 his death, conditional upon such widow having attained the
22 age of 60 or more years on such date if the death occurs
23 before July 1, 1990, or age 55 or more if the death occurs on
24 or after July 1, 1990, or age 50 or more if the death occurs
25 on or after January 1, 1998 and the employee is age 50 or
26 over with at least 30 years of service or age 55 or over with
27 at least 25 years of service. Except as provided in
28 subsection (k), this widow's annuity shall not, however,
29 exceed the sum of $500 a month if the employee's death in
30 service occurs before January 23, 1987. The widow's annuity
31 shall not be limited to a maximum dollar amount if the
32 employee's death in service occurs on or after January 23,
33 1987.
34 If the employee dies in service before July 1, 1990, and
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1 if such widow of such described employee shall not be 60 or
2 more years of age on such date of death, the amount provided
3 in the immediately preceding paragraph for a widow 60 or more
4 years of age, shall, in the case of such younger widow, be
5 reduced by 0.25% for each month that her then attained age is
6 less than 60 years if the employee was born before January 1,
7 1936 or dies in service on or after January 1, 1988, or by
8 0.5% for each month that her then attained age is less than
9 60 years if the employee was born on or after July 1, 1936
10 and dies in service before January 1, 1988.
11 If the employee dies in service on or after July 1, 1990,
12 and if the widow of the employee has not attained age 55 on
13 or before the employee's date of death, the amount otherwise
14 provided in this subsection (a) shall be reduced by 0.25% for
15 each month that her then attained age is less than 55 years;
16 except that if the employee dies in service on or after
17 January 1, 1998 at age 50 or over with at least 30 years of
18 service or at age 55 or over with at least 25 years of
19 service, there shall be no reduction due to the widow's age
20 if she has attained age 50 on or before the employee's date
21 of death, and if the widow has not attained age 50 on or
22 before the employee's date of death the amount otherwise
23 provided in this subsection (a) shall be reduced by 0.25% for
24 each month that her then attained age is less than 50 years.
25 (b) The widow of any employee who dies subsequent to the
26 date of his retirement on annuity, and who so retired on or
27 after the date on which he attained the age of 60 or more
28 years if retirement occurs before July 1, 1990, or on or
29 after the date on which he attained age 55 if retirement
30 occurs on or after July 1, 1990, with at least 20 years of
31 service, or on or after the date on which he attained age 50
32 if the retirement occurs on or after the effective date of
33 this amendatory Act of 1997 with at least 30 years of
34 service, shall be entitled to an annuity equal to one-half of
HB3515 Enrolled -46- LRB9011159EGfg
1 the amount of annuity which her deceased husband received as
2 of the date of his retirement on annuity, conditional upon
3 such widow having attained the age of 60 or more years on the
4 date of her husband's retirement on annuity if retirement
5 occurs before July 1, 1990, or age 55 or more if retirement
6 occurs on or after July 1, 1990, or age 50 or more if the
7 retirement on annuity occurs on or after January 1, 1998 and
8 the employee is age 50 or over with at least 30 years of
9 service or age 55 or over with at least 25 years of service.
10 Except as provided in subsection (k), this widow's annuity
11 shall not, however, exceed the sum of $500 a month if the
12 employee's death occurs before January 23, 1987. The widow's
13 annuity shall not be limited to a maximum dollar amount if
14 the employee's death occurs on or after January 23, 1987,
15 regardless of the date of retirement; provided that, if
16 retirement was before January 23, 1987, the employee or
17 eligible spouse repays the excess spouse refund with interest
18 at the effective rate from the date of refund to the date of
19 repayment.
20 If the date of the employee's retirement on annuity is
21 before July 1, 1990, and if such widow of such described
22 employee shall not have attained such age of 60 or more years
23 on such date of her husband's retirement on annuity, the
24 amount provided in the immediately preceding paragraph for a
25 widow 60 or more years of age on the date of her husband's
26 retirement on annuity, shall, in the case of such then
27 younger widow, be reduced by 0.25% for each month that her
28 then attained age was less than 60 years if the employee was
29 born before January 1, 1936 or withdraws from service on or
30 after January 1, 1988, or by 0.5% for each month that her
31 then attained age is less than 60 years if the employee was
32 born on or after January 1, 1936 and withdraws from service
33 before January 1, 1988.
34 If the date of the employee's retirement on annuity is on
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1 or after July 1, 1990, and if the widow of the employee has
2 not attained age 55 by the date of the employee's retirement
3 on annuity, the amount otherwise provided in this subsection
4 (b) shall be reduced by 0.25% for each month that her then
5 attained age is less than 55 years; except that if the
6 employee retires on annuity on or after January 1, 1998 at
7 age 50 or over with at least 30 years of service or at age 55
8 or over with at least 25 years of service, there shall be no
9 reduction due to the widow's age if she has attained age 50
10 on or before the employee's date of death, and if the widow
11 has not attained age 50 on or before the employee's date of
12 death the amount otherwise provided in this subsection (b)
13 shall be reduced by 0.25% for each month that her then
14 attained age is less than 50 years.
15 (c) The foregoing provisions relating to minimum
16 annuities for widows shall not apply to the widow of any
17 former municipal employee receiving an annuity from the fund
18 on August 9, 1965 or on the effective date of this amendatory
19 provision, who re-enters service as a municipal employee,
20 unless such employee renders at least 3 years of additional
21 service after the date of re-entry.
22 (d) In computing the amount of annuity which the husband
23 specified in the foregoing paragraphs (a) and (b) of this
24 Section would have been entitled to receive, or received,
25 such amount shall be the annuity to which such husband would
26 have been, or was entitled, before reduction in the amount of
27 his annuity for the purposes of the voluntary optional
28 reversionary annuity provided for in Sec. 8-139 of this
29 Article, if such option was elected.
30 (e) (Blank).
31 (f) (Blank).
32 (g) The amendatory provisions of this amendatory Act of
33 1985 relating to annuity discount because of age for widows
34 of employees born before January 1, 1936, shall apply only to
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1 qualifying widows of employees withdrawing or dying in
2 service on or after July 18, 1985.
3 (h) Beginning on January 1, 1999 the effective date of
4 this amendatory Act of 1997, the minimum amount of widow's
5 annuity shall be $800 $500 per month for life for the
6 following classes of widows, without regard to the fact that
7 the death of the employee occurred prior to the effective
8 date of this amendatory Act of 1998 1997:
9 (1) any widow annuitant alive and receiving a life
10 annuity on the effective date of this amendatory Act of
11 1998 1997, except a reciprocal annuity;
12 (2) any widow annuitant alive and receiving a term
13 annuity on the effective date of this amendatory Act of
14 1998 1997, except a reciprocal annuity;
15 (3) any widow annuitant alive and receiving a
16 reciprocal annuity on the effective date of this
17 amendatory Act of 1998 1997, whose employee spouse's
18 service in this fund was at least 5 years;
19 (4) the widow of an employee with at least 10 years
20 of service in this fund who dies after retirement, if the
21 retirement occurred prior to the effective date of this
22 amendatory Act of 1998 1997;
23 (5) the widow of an employee with at least 10 years
24 of service in this fund who dies after retirement, if
25 withdrawal occurs on or after the effective date of this
26 amendatory Act of 1998 1997;
27 (6) the widow of an employee who dies in service
28 with at least 5 years of service in this fund, if the
29 death in service occurs on or after the effective date of
30 this amendatory Act of 1998 1997.
31 The increases granted under items (1), (2), (3) and (4)
32 of this subsection (h) shall not be limited by any other
33 Section of this Act.
34 (i) The widow of an employee who retired or died in
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1 service on or after January 1, 1985 and before July 1, 1990,
2 at age 55 or older, and with at least 35 years of service
3 credit, shall be entitled to have her widow's annuity
4 increased, effective January 1, 1991, to an amount equal to
5 50% of the retirement annuity that the deceased employee
6 received on the date of retirement, or would have been
7 eligible to receive if he had retired on the day preceding
8 the date of his death in service, provided that if the widow
9 had not attained age 60 by the date of the employee's
10 retirement or death in service, the amount of the annuity
11 shall be reduced by 0.25% for each month that her then
12 attained age was less than age 60 if the employee's
13 retirement or death in service occurred on or after January
14 1, 1988, or by 0.5% for each month that her attained age is
15 less than age 60 if the employee's retirement or death in
16 service occurred prior to January 1, 1988. However, in cases
17 where a refund of excess contributions for widow's annuity
18 has been paid by the Fund, the increase in benefit provided
19 by this subsection (i) shall be contingent upon repayment of
20 the refund to the Fund with interest at the effective rate
21 from the date of refund to the date of payment.
22 (j) If a deceased employee is receiving a retirement
23 annuity at the time of death and that death occurs on or
24 after June 27, the effective date of this amendatory Act of
25 1997, the widow may elect to receive, in lieu of any other
26 annuity provided under this Article, 50% of the deceased
27 employee's retirement annuity at the time of death reduced by
28 0.25% for each month that the widow's age on the date of
29 death is less than 55; except that if the employee dies on or
30 after January 1, 1998 and withdrew from service on or after
31 June 27, 1997 at age 50 or over with at least 30 years of
32 service or at age 55 or over with at least 25 years of
33 service, there shall be no reduction due to the widow's age
34 if she has attained age 50 on or before the employee's date
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1 of death, and if the widow has not attained age 50 on or
2 before the employee's date of death the amount otherwise
3 provided in this subsection (j) shall be reduced by 0.25% for
4 each month that her age on the date of death is less than 50
5 years. However, in cases where a refund of excess
6 contributions for widow's annuity has been paid by the Fund,
7 the benefit provided by this subsection (j) is contingent
8 upon repayment of the refund to the Fund with interest at the
9 effective rate from the date of refund to the date of
10 payment.
11 (k) For widows of employees who died before January 23,
12 1987 after retirement on annuity or in service, the maximum
13 dollar amount limitation on widow's annuity shall cease to
14 apply, beginning with the first annuity payment after the
15 effective date of this amendatory Act of 1997; except that if
16 a refund of excess contributions for widow's annuity has been
17 paid by the Fund, the increase resulting from this subsection
18 (k) shall not begin before the refund has been repaid to the
19 Fund, together with interest at the effective rate from the
20 date of the refund to the date of repayment.
21 (Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
22 (40 ILCS 5/8-158) (from Ch. 108 1/2, par. 8-158)
23 Sec. 8-158. Child's annuity. A child's annuity is
24 payable monthly after the death of an employee parent to the
25 child until the child's attainment of age 18, under the
26 following conditions, if the child was born before the
27 employee attained age 65, and before he withdrew from
28 service:
29 (a) upon death resulting from injury incurred in
30 the performance of an act of duty;
31 (b) upon death in service from any cause other than
32 injury incurred in the performance of an act of duty, if
33 the employee has at least 4 years of service after the
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1 date of his original entry into service, and at least 2
2 years after the date of his latest re-entry;
3 (c) upon death of an employee who withdraws from
4 service after age 55 (or after age 50 with at least 30
5 years of service if withdrawal is on or after June 27,
6 1997) and who has entered upon or is eligible for
7 annuity.
8 Payment shall be made as provided in Section 8-125.
9 (Source: P.A. 90-31, eff. 6-27-97.)
10 (40 ILCS 5/8-173) (from Ch. 108 1/2, par. 8-173)
11 Sec. 8-173. Financing; tax levy.
12 (a) Except as provided in subsection (f) of this
13 Section, the city council of the city shall levy a tax
14 annually upon all taxable property in the city at a rate that
15 will produce a sum which, when added to the amounts deducted
16 from the salaries of the employees or otherwise contributed
17 by them and the amounts deposited under subsection (f), will
18 be sufficient for the requirements of this Article, but which
19 when extended will produce an amount not to exceed the
20 greater of the following: (a) the sum obtained by the levy of
21 a tax of .1093% of the value, as equalized or assessed by the
22 Department of Revenue, of all taxable property within such
23 city, or (b) the sum of $12,000,000. However any city in
24 which a Fund has been established and in operation under this
25 Article for more than 3 years prior to 1970, that city shall
26 levy for the year 1970 a tax at a rate on the dollar of
27 assessed valuation of all taxable property that will produce,
28 when extended, an amount not to exceed 1.2 times the total
29 amount of contributions made by employees to the Fund for
30 annuity purposes in the calendar year 1968, and, for the year
31 1971 and 1972 such levy that will produce, when extended, an
32 amount not to exceed 1.3 times the total amount of
33 contributions made by of employees to the Fund for annuity
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1 purposes in the calendar years 1969 and 1970, respectively;
2 and for the year 1973 an amount not to exceed 1.365 times
3 such total amount of contributions made by employees for
4 annuity purposes in the calendar year 1971; and for the year
5 1974 an amount not to exceed 1.430 times such total amount of
6 contributions made by employees for annuity purposes in the
7 calendar year 1972; and for the year 1975 an amount not to
8 exceed 1.495 times such total amount of contributions made by
9 employees for annuity purposes in the calendar year 1973; and
10 for the year 1976 an amount not to exceed 1.560 times such
11 total amount of contributions made by employees for annuity
12 purposes in the calendar year 1974; and for the year 1977 an
13 amount not to exceed 1.625 times such total amount of
14 contributions made by employees for annuity purposes in the
15 calendar year 1975; and for the year 1978 and each year
16 thereafter, such levy as that will produce, when extended, an
17 amount not to exceed 1.690 times the total amount of
18 contributions made by or on behalf of employees to the Fund
19 for annuity purposes in the calendar year 2 years prior to
20 the year for which the annual applicable tax is levied,
21 multiplied by 1.690 for the years 1978 through 1998 and by
22 1.250 for the year 1999 and for each year thereafter.
23 The tax shall be levied and collected in like manner with
24 the general taxes of the city, and shall be exclusive of and
25 in addition to the amount of tax the city is now or may
26 hereafter be authorized to levy for general purposes under
27 any laws which may limit the amount of tax which the city may
28 levy for general purposes. The county clerk of the county in
29 which the city is located, in reducing tax levies under the
30 provisions of any Act concerning the levy and extension of
31 taxes, shall not consider the tax herein provided for as a
32 part of the general tax levy for city purposes, and shall not
33 include the same within any limitation of the percent of the
34 assessed valuation upon which taxes are required to be
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1 extended for such city.
2 Revenues derived from such tax shall be paid to the city
3 treasurer of the city as collected and held by him for the
4 benefit of the fund.
5 If the payments on account of taxes are insufficient
6 during any year to meet the requirements of this Article, the
7 city may issue tax anticipation warrants against the current
8 tax levy.
9 (b) On or before January 10, annually, the board shall
10 notify the city council of the requirements of this Article
11 that the tax herein provided shall be levied for that current
12 year. The board shall compute the amounts necessary to be
13 credited to the reserves established and maintained as herein
14 provided, and shall make an annual determination of the
15 amount of the required city contributions, and certify the
16 results thereof to the city council.
17 (c) In respect to employees of the city who are
18 transferred to the employment of a park district by virtue of
19 the "Exchange of Functions Act of 1957", the corporate
20 authorities of the park district shall annually levy a tax
21 upon all the taxable property in the park district at such
22 rate per cent of the value of such property, as equalized or
23 assessed by the Department of Revenue, as shall be
24 sufficient, when added to the amounts deducted from their
25 salaries and otherwise contributed by them to provide the
26 benefits to which they and their dependents and beneficiaries
27 are entitled under this Article. The city shall not levy a
28 tax hereunder in respect to such employees.
29 The tax so levied by the park district shall be in
30 addition to and exclusive of all other taxes authorized to be
31 levied by the park district for corporate, annuity fund, or
32 other purposes. The county clerk of the county in which the
33 park district is located, in reducing any tax levied under
34 the provisions of any act concerning the levy and extension
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1 of taxes shall not consider such tax as part of the general
2 tax levy for park purposes, and shall not include the same in
3 any limitation of the per cent of the assessed valuation upon
4 which taxes are required to be extended for the park
5 district. The proceeds of the tax levied by the park
6 district, upon receipt by the district, shall be immediately
7 paid over to the city treasurer of the city for the uses and
8 purposes of the fund.
9 The various sums, to be contributed by the city and park
10 district and allocated for the purposes of this Article, and
11 any interest to be contributed by the city, shall be derived
12 from the revenue from the taxes authorized in this Section
13 said tax or otherwise as expressly provided in this Section.
14 If it is not possible or practicable for the city to make
15 contributions for age and service annuity and widow's annuity
16 at the same time that employee contributions are made for
17 such purposes, such city contributions shall be construed to
18 be due and payable as of the end of the fiscal year for which
19 the tax is levied and shall accrue thereafter with interest
20 at the effective rate until paid.
21 (d) With respect to employees whose wages are funded as
22 participants under the Comprehensive Employment and Training
23 Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
24 93-567, 88 Stat. 1845), hereinafter referred to as CETA,
25 subsequent to October 1, 1978, and in instances where the
26 board has elected to establish a manpower program reserve,
27 the board shall compute the amounts necessary to be credited
28 to the manpower program reserves established and maintained
29 as herein provided, and shall make a periodic determination
30 of the amount of required contributions from the City to the
31 reserve to be reimbursed by the federal government in
32 accordance with rules and regulations established by the
33 Secretary of the United States Department of Labor or his
34 designee, and certify the results thereof to the City
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1 Council. Any such amounts shall become a credit to the City
2 and will be used to reduce the amount which the City would
3 otherwise contribute during succeeding years for all
4 employees.
5 (e) In lieu of establishing a manpower program reserve
6 with respect to employees whose wages are funded as
7 participants under the Comprehensive Employment and Training
8 Act of 1973, as authorized by subsection (d), the board may
9 elect to establish a special municipality contribution rate
10 for all such employees. If this option is elected, the City
11 shall contribute to the Fund from federal funds provided
12 under the Comprehensive Employment and Training Act program
13 at the special rate so established and such contributions
14 shall become a credit to the City and be used to reduce the
15 amount which the City would otherwise contribute during
16 succeeding years for all employees.
17 (f) In lieu of levying all or a portion of the tax
18 required under this Section in any year, the city may deposit
19 with the city treasurer no later than March 1 of that year
20 for the benefit of the fund, to be held in accordance with
21 this Article, an amount that, together with the taxes levied
22 under this Section for that year, is not less than the amount
23 of the city contributions for that year as certified by the
24 board to the city council. The deposit may be derived from
25 any source legally available for that purpose, including, but
26 not limited to, the proceeds of city borrowings. The making
27 of a deposit shall satisfy fully the requirements of this
28 Section for that year to the extent of the amounts so
29 deposited. Amounts deposited under this subsection may be
30 used by the fund for any of the purposes for which the
31 proceeds of the tax levied by the city under this Section may
32 be used, including the payment of any amount that is
33 otherwise required by this Article to be paid from the
34 proceeds of that tax.
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1 (Source: P.A. 90-31, eff. 6-27-97; revised 12-18-97.)
2 (40 ILCS 5/8-230.7 new)
3 Sec. 8-230.7. Service rendered to Public Building
4 Commission.
5 (a) An employee or former employee may contribute to the
6 fund and receive credit for all periods of full-time
7 employment by the Public Building Commission created by the
8 employing city, except for those periods for which the
9 employee retains a right to credit in another public pension
10 fund or retirement system. Such service credit shall be paid
11 for and granted on the same basis and under the same
12 conditions as are applicable in the case of employees who
13 make payment for past service under Section 8-230, provided
14 that the person must also pay the corresponding employer
15 contributions. The contributions shall be based on the
16 salary actually received by the person from the Commission
17 for that employment.
18 (b) A person establishing service credit under
19 subsection (a) may, at the same time, reinstate service
20 credit that was terminated through receipt of a refund by
21 repaying to the Fund the amount of the refund plus interest
22 at the effective rate from the date of the refund to the date
23 of repayment.
24 (c) An eligible person may establish service credit
25 under subsection (a) and reinstate service credit under
26 subsection (b) without returning to active service as an
27 employee under this Article, but the required contributions
28 and repayment must be received by the Fund before the person
29 begins to receive a retirement annuity under this Article.
30 (40 ILCS 5/8-244.1) (from Ch. 108 1/2, par. 8-244.1)
31 Sec. 8-244.1. Payment of annuity other than direct.
32 (a) The board, at the written direction and request of
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1 any annuitant, may, solely as an accommodation to such
2 annuitant, pay the annuity due him to a bank, savings and
3 loan association or any other financial institution insured
4 by an agency of the federal government, for deposit to his
5 account, or to a bank or trust company for deposit in a trust
6 established by him for his benefit with such bank, savings
7 and loan association or trust company, and such annuitant may
8 withdraw such direction at any time. The board may also, in
9 the case of any disability beneficiary or annuitant for whom
10 no estate guardian has been appointed and who is confined in
11 a publicly owned and operated mental institution, pay such
12 disability benefit or annuity due such person to the
13 superintendent or other head of such institution or hospital
14 for deposit to such person's trust fund account maintained
15 for him by such institution or hospital, if by law such trust
16 fund accounts are authorized or recognized.
17 (b) An annuitant formerly employed by the City of
18 Chicago may authorize the withholding of a portion of his or
19 her annuity for payment of dues to the labor organization
20 which formerly represented the annuitant when the annuitant
21 was an active employee; however, no withholding shall be
22 required under this subsection for payment to one labor
23 organization unless a minimum of 25 annuitants authorize such
24 withholding. The Board shall prescribe a form for the
25 authorization of withholding of dues, release of name, social
26 security number and address and sha