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90_HB3515ccr001
LRB9011159EGfgccr6
1 90TH GENERAL ASSEMBLY
2 CONFERENCE COMMITTEE REPORT
3 ON HOUSE BILL 3515
4 -------------------------------------------------------------
5 -------------------------------------------------------------
6 To the President of the Senate and the Speaker of the
7 House of Representatives:
8 We, the conference committee appointed to consider the
9 differences between the houses in relation to Senate
10 Amendment No. 1 to House Bill 3515, recommend the following:
11 (1) That the Senate recede from Senate Amendment No. 1;
12 and
13 (2) That House Bill 3515 be amended as follows:
14 by replacing the title with the following:
15 "AN ACT in relation to public employee retirement
16 benefits, amending named Acts."; and
17 by replacing everything after the enacting clause with the
18 following:
19 "Section 5. The Illinois Pension Code is amended by
20 changing Sections 2-121, 2-123, 2-126, 2-126.1, 3-114.3,
21 3-114.4, 3-121, 5-156, 5-157, 5-167.4, 5-168, 5-172, 5-204,
22 6-128.4, 6-165, 7-146, 7-150, 7-159, 7-173.1, 7-173.2, 8-137,
23 8-137.1, 8-138, 8-139, 8-150.1, 8-158, 8-173, 8-244.1,
24 11-134, 11-134.1, 11-134.2, 11-134.3, 11-145.1, 11-153,
25 11-169, 11-181, 11-182, 11-183, 12-133.1, 12-166, 14-104,
26 14-104.10 (as added by P.A. 90-32), 14-133.1, 15-107, 15-135,
27 15-136, 15-136.4, 15-141, 15-142, 15-145, 15-146, 15-150,
28 15-153.2, 15-153.3, 15-154, 15-157, 15-158.2, 15-158.3,
29 15-165, 15-167, 18-129, and 18-133.1 and adding Sections
30 3-114.6, 8-230.7, 12-133.5, 15-103.1, 15-103.2, 15-103.3, and
31 15-134.5 as follows:
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1 (40 ILCS 5/2-121) (from Ch. 108 1/2, par. 2-121)
2 Sec. 2-121. Survivor's annuity - conditions for payment.
3 (a) A survivor's annuity shall be payable to a surviving
4 spouse or eligible child (1) upon the death in service of a
5 participant with at least 2 years of service credit, or (2)
6 upon the death of an annuitant in receipt of a retirement
7 annuity, or (3) upon the death of a participant who
8 terminated service with at least 4 years of service credit.
9 The change in this subsection (a) made by this amendatory
10 Act of 1995 applies to survivors of participants who die on
11 or after December 1, 1994, without regard to whether or not
12 the participant was in service on or after the effective date
13 of this amendatory Act of 1995.
14 (b) To be eligible for the survivor's annuity, the
15 spouse and the participant or annuitant must have been
16 married for a continuous period of at least one year
17 immediately preceding the date of death, but need not have
18 been married on the day of the participant's last termination
19 of service, regardless of whether such termination occurred
20 prior to the effective date of this amendatory Act of 1985.
21 (c) The annuity shall be payable beginning on the date
22 of a participant's death, or the first of the month following
23 an annuitant's death, if the spouse is then age 50 or over,
24 or beginning at age 50 if the spouse is then under age 50.
25 If an eligible child or children of the participant or
26 annuitant (or a child or children of the eligible spouse
27 meeting the criteria of item (1), (2), or (3) of subsection
28 (d) of this Section) also survive, and the child or children
29 are under the care of the eligible spouse, the annuity shall
30 begin as of the date of a participant's death, or the first
31 of the month following an annuitant's death, without regard
32 to the spouse's age.
33 The change to this subsection made by this amendatory Act
34 of 1998 (relating to children of an eligible spouse) applies
35 to the eligible spouse of a participant or annuitant who dies
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1 on or after the effective date of this amendatory Act,
2 without regard to whether the participant or annuitant is in
3 service on or after that effective date.
4 (d) For the purposes of this Section and Section
5 2-121.1, "eligible child" means a child of the deceased
6 participant or annuitant who is at least one of the
7 following:
8 (1) unmarried and under the age of 18;
9 (2) unmarried, a full-time student, and under the
10 age of 22;
11 (3) dependent by reason of physical or mental
12 disability.
13 The inclusion of unmarried students under age 22 in the
14 calculation of survivor's annuities by this amendatory Act of
15 1991 shall apply to all eligible students beginning January
16 1, 1992, without regard to whether the deceased participant
17 or annuitant was in service on or after the effective date of
18 this amendatory Act of 1991.
19 Adopted children shall have the same status as children
20 of the participant or annuitant, but only if the proceedings
21 for adoption are commenced at least one year prior to the
22 date of the participant's or annuitant's death.
23 (e) Remarriage of a surviving spouse prior to attainment
24 of age 55 shall disqualify the surviving spouse from the
25 receipt of a survivor's annuity.
26 (Source: P.A. 89-136, eff. 7-14-95.)
27 (40 ILCS 5/2-123) (from Ch. 108 1/2, par. 2-123)
28 Sec. 2-123. Refunds.
29 (a) A participant who ceases to be a member, other than
30 an annuitant, shall, upon written request, receive a refund
31 of his or her total contributions, without interest. The
32 refund shall include the additional contributions for the
33 automatic increase in retirement annuity. By accepting the
34 refund, a participant forfeits all accrued rights and
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1 benefits in the System and loses credit for all service.
2 However, if he or she again becomes a member, he or she may
3 resume status as a participant and reestablish any forfeited
4 service credit by paying to the System the full amount
5 refunded, together with interest at 4% per annum from the
6 time the refund is paid to the date the member again becomes
7 a participant.
8 A former member of the General Assembly may reestablish
9 any service credit forfeited by acceptance of a refund by
10 paying to the System on or before February 1, 1993, the full
11 amount refunded, together with interest at 4% per annum from
12 the date of payment of the refund to the date of repayment.
13 When a member or former member owes money to the System,
14 interest at the rate of 4% per annum shall accrue and be
15 payable on such amounts owed beginning on the date of
16 termination of service as a member until the contributions
17 due have been paid in full.
18 (b) A participant who (1) has elected to cease making
19 contributions for survivor's annuity under subsection (b) of
20 Section 2-126, (2) has no eligible survivor's annuity
21 beneficiary survivor upon becoming an annuitant, or (3) who
22 terminates service with less than 8 years of service is
23 entitled to a refund of the contributions for a survivor's
24 annuity, without interest. If the such person later marries,
25 a survivor's annuity shall not be payable upon his or her
26 death, unless the amount of the such refund is repaid to the
27 System, together with interest at the rate of 4% per year
28 from the date of refund to the date of repayment.
29 (c) If at the date of retirement or death of a
30 participant who served as an officer of the General Assembly,
31 the total period of such service is less than 4 years, the
32 additional contributions made by such member on the
33 additional salary as an officer shall be refunded unless the
34 participant served as an officer for at least 2 years and has
35 contributed the amount he or she would have contributed if he
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1 or she had served as an officer for 4 years as provided in
2 Section 2-126.
3 (d) Upon the termination of the last survivor's annuity
4 payable to a survivor of a deceased participant, the excess,
5 if any, of the total contributions made by the participant
6 for retirement and survivor's annuity, without interest, over
7 the total amount of retirement and survivor's annuity
8 payments received by the participant and the participant's
9 survivors shall be refunded upon request:
10 (i) if there was a surviving spouse of the deceased
11 participant who was eligible for a survivor's annuity, to
12 the designated beneficiary of that spouse or, if the
13 designated beneficiary is deceased or there is no
14 designated beneficiary, to that spouse's estate;
15 (ii) if there was no eligible surviving spouse of
16 the deceased participant, to the designated beneficiary
17 of the deceased participant or, if the designated
18 beneficiary is deceased or there is no designated
19 beneficiary, to the deceased participant's estate.
20 (e) Upon the death of a participant, if a survivor's
21 annuity is not payable under this Article, a beneficiary
22 designated by the participant shall be entitled to a refund
23 of all contributions made by the participant. If the
24 participant has not designated a refund beneficiary, the
25 surviving spouse shall be entitled to the refund of
26 contributions; if there is no surviving spouse, the
27 contributions shall be refunded to the participant's
28 surviving children, if any, and if no children survive, the
29 refund payment shall be made to the participant's estate.
30 (Source: P.A. 90-448, eff. 8-16-97.)
31 (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
32 Sec. 2-126. Contributions by participants.
33 (a) Each participant shall contribute toward the cost of
34 his or her retirement annuity a percentage of each payment of
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1 salary received by him or her for service as a member as
2 follows: for service between October 31, 1947 and January 1,
3 1959, 5%; for service between January 1, 1959 and June 30,
4 1969, 6%; for service between July 1, 1969 and January 10,
5 1973, 6 1/2%; for service after January 10, 1973, 7%; for
6 service after December 31, 1981, 8 1/2%.
7 (b) Beginning August 2, 1949, each male participant, and
8 from July 1, 1971, each female participant shall contribute
9 towards the cost of the survivor's annuity 2% of salary.
10 A participant who has no eligible survivor's annuity
11 beneficiary may elect to cease making contributions for
12 survivor's annuity under this subsection. A survivor's
13 annuity shall not be payable upon the death of a person who
14 has made this election, unless prior to that death the
15 election has been revoked and the amount of the contributions
16 that would have been paid under this subsection in the
17 absence of the election is paid to the System, together with
18 interest at the rate of 4% per year from the date the
19 contributions would have been made to the date of payment.
20 (c) Beginning July 1, 1967, each participant shall
21 contribute 1% of salary towards the cost of automatic
22 increase in annuity provided in Section 2-119.1. These
23 contributions shall be made concurrently with contributions
24 for retirement annuity purposes.
25 (d) In addition, each participant serving as an officer
26 of the General Assembly shall contribute, for the same
27 purposes and at the same rates as are required of a regular
28 participant, on each additional payment received as an
29 officer. If the participant serves as an officer for at
30 least 2 but less than 4 years, he or she shall contribute an
31 amount equal to the amount that would have been contributed
32 had the participant served as an officer for 4 years.
33 Persons who serve as officers in the 87th General Assembly
34 but cannot receive the additional payment to officers because
35 of the ban on increases in salary during their terms may
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1 nonetheless make contributions based on those additional
2 payments for the purpose of having the additional payments
3 included in their highest salary for annuity purposes;
4 however, persons electing to make these additional
5 contributions must also pay an amount representing the
6 corresponding employer contributions, as calculated by the
7 System.
8 (Source: P.A. 86-273; 87-1265.)
9 (40 ILCS 5/2-126.1) (from Ch. 108 1/2, par. 2-126.1)
10 Sec. 2-126.1. Pickup of contributions.
11 (a) The State shall pick up the participant
12 contributions required under Section 2-126 for all salary
13 earned after December 31, 1981. The contributions so picked
14 up shall be treated as employer contributions in determining
15 tax treatment under the United States Internal Revenue Code.
16 The State shall pay these participant contributions from the
17 same source of funds which is used in paying salary to the
18 participant. The State may pick up these contributions by a
19 reduction in the cash salary of the participant. If
20 participant contributions are picked up they shall be treated
21 for all purposes of this Article 2 in the same manner as
22 participant contributions that were made prior to the date
23 that the pick up of contributions began.
24 (b) Subject to the requirements of federal law, a
25 participant may elect to have the employer pick up optional
26 contributions that the participant has elected to pay to the
27 System, and the contributions so picked up shall be treated
28 as employer contributions for the purposes of determining
29 federal tax treatment. The employer shall pick up the
30 contributions by a reduction in the cash salary of the
31 participant and shall pay the contributions from the same
32 fund that is used to pay earnings to the participant. The
33 election to have optional contributions picked up is
34 irrevocable and the optional contributions may not thereafter
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1 be prepaid, by direct payment or otherwise. If the provision
2 authorizing the optional contribution requires payment by a
3 stated date (rather than the date of withdrawal or
4 retirement), that requirement shall be deemed to have been
5 satisfied if (i) on or before the stated date the participant
6 executes a valid irrevocable election to have the
7 contributions picked up under this subsection, and (ii) the
8 picked-up contributions are in fact paid to the System as
9 provided in the election.
10 (Source: P.A. 90-448, eff. 8-16-97.)
11 (40 ILCS 5/3-114.3) (from Ch. 108 1/2, par. 3-114.3)
12 Sec. 3-114.3. Heart attack suffered in performance of
13 duties. Any police officer who suffers a heart attack as a
14 result of the performance and discharge of police duty shall
15 be considered as having been injured in the performance of an
16 act of duty and shall be eligible for the benefits provided
17 under this Article for police officers injured in the
18 performance of an act of duty or, if applicable, the benefits
19 provided in Section 3-114.6.
20 (Source: P.A. 83-1440.)
21 (40 ILCS 5/3-114.4) (from Ch. 108 1/2, par. 3-114.4)
22 Sec. 3-114.4. Return to active duty after disability. A
23 police officer who receives a disability pension under
24 Section Sections 3-114.1, or 3-114.2, or 3-114.6 for more
25 than 2 years and who returns to active duty must remain in
26 active police service for at least 5 years before becoming
27 eligible for a disability pension greater than the pension
28 paid for the prior disability.
29 (Source: P.A. 83-1440.)
30 (40 ILCS 5/3-114.6 new)
31 Sec. 3-114.6. Occupational disease disability pension.
32 (a) This Section applies only to police officers who are
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1 employed by a municipality with a combined police and fire
2 department and who have regular firefighting duties in
3 addition to their law enforcement duties.
4 (b) The General Assembly finds that service in a police
5 department that also has firefighting duties requires
6 officers to perform unusual tasks in times of stress and
7 danger; that officers are subject to exposure to extreme heat
8 or extreme cold in certain seasons while performing their
9 duties; that they are required to work in the midst of and
10 are subject to heavy smoke fumes and carcinogenic, poisonous,
11 toxic, or chemical gases from fires; and that these
12 conditions exist and arise out of or in the course of
13 employment.
14 (c) An active officer with 5 or more years of creditable
15 service who is found to be unable to perform his or her
16 duties in the department by reason of heart disease,
17 tuberculosis, or any disease of the lungs or respiratory
18 tract, resulting from service as an officer, is entitled to
19 an occupational disease disability pension during any period
20 of such disability for which he or she has no right to
21 receive salary.
22 An active officer who has completed 5 or more years of
23 service and is unable to perform his or her duties in the
24 department by reason of a disabling cancer, which develops or
25 manifests itself during a period while the officer is in the
26 service of the department, is entitled to receive an
27 occupational disease disability benefit during any period of
28 such disability for which he or she does not have a right to
29 receive salary. In order to receive this occupational
30 disease disability benefit, the cancer must be of a type that
31 may be caused by exposure to heat, radiation, or a known
32 carcinogen as defined by the International Agency for
33 Research on Cancer.
34 An officer who, after the effective date of this
35 amendatory Act of 1998, enters the service of a combined
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1 police and fire department and has regular firefighting
2 duties shall be examined by one or more practicing physicians
3 appointed by the board. If the examination discloses
4 impairment of the heart, lungs, or respiratory tract, or the
5 existence of cancer, the officer shall not be entitled to an
6 occupational disease disability pension under this Section
7 unless and until a subsequent examination reveals no such
8 impairment or cancer.
9 The occupational disease disability pension shall be 65%
10 of the salary attached to the rank held by the officer at the
11 time of his or her removal from the municipality's department
12 payroll.
13 The occupational disease disability pension is payable to
14 the officer during the period of the disability. If the
15 disability ceases before the death of the officer, the
16 disability pension payable under this Section shall also
17 cease and the officer thereafter shall receive such pension
18 benefits as are provided in accordance with other provisions
19 of this Article.
20 If an officer dies while still disabled and receiving a
21 disability pension under this Section, the disability pension
22 shall continue to be paid to the officer's survivors in the
23 sequence provided in Section 3-112.
24 (40 ILCS 5/3-121) (from Ch. 108 1/2, par. 3-121)
25 Sec. 3-121. Marriage and remarriage. The pensions
26 provided in Sections 3-112, 3-114.1, and 3-114.2, and 3-114.6
27 shall not be paid to a child or dependent parent after
28 marriage or remarriage of the child or dependent parent
29 following the death of the police officer.
30 The pensions provided in Sections 3-112, 3-114.1 and
31 3-114.2 shall not be paid to a surviving spouse after
32 remarriage following the death of the police officer, if the
33 remarriage occurs (i) prior to January 1, 1974 or (ii) after
34 December 31, 1974 but before the effective date of this
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1 amendatory Act of 1995. Remarriage on or after the effective
2 date of this amendatory Act of 1995 does not affect the
3 surviving spouse's eligibility for those pensions, regardless
4 of whether the deceased police officer was in service on or
5 after that effective date. A surviving spouse whose pension
6 was terminated due to remarriage during 1974, and who applies
7 for reinstatement of that pension before January 1, 1990,
8 shall be entitled to have the pension reinstated beginning on
9 January 1, 1990.
10 (Source: P.A. 89-408, eff. 11-15-95.)
11 (40 ILCS 5/5-156) (from Ch. 108 1/2, par. 5-156)
12 Sec. 5-156. Proof of duty or ordinary disability -
13 Physical examinations. Proof of duty, occupational disease,
14 or ordinary disability shall be furnished to the board by at
15 least one licensed and practicing physician appointed by the
16 board. In cases where the board requests an applicant to get
17 a second opinion, the applicant must select a physician from
18 a list of qualified licensed and practicing physicians who
19 specialize in the various medical areas related to duty
20 injuries and illnesses, as established by the board. The
21 board may require other evidence of disability. A disabled
22 policeman who receives a duty, occupational disease, or
23 ordinary disability benefit shall be examined at least once a
24 year by one or more physicians appointed by the board. When
25 the disability ceases, the board shall discontinue payment of
26 the benefit, and the policeman shall be returned to active
27 service.
28 (Source: P.A. 86-272.)
29 (40 ILCS 5/5-157) (from Ch. 108 1/2, par. 5-157)
30 Sec. 5-157. Administration of disability benefits.
31 If a policeman who is granted duty or ordinary disability
32 benefit refuses to submit to examination by a physician
33 appointed by the board, he shall have no further right to
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1 receive the benefit.
2 A policeman who has withdrawn from service while disabled
3 and entered upon annuity prior to the effective date, and who
4 has thereafter been reinstated as a policeman, shall have no
5 right to ordinary disability benefit in excess of the amount
6 previously received unless he serves at least one year after
7 such reinstatement. This provision shall apply throughout
8 the duration of any disability incurred by the policeman
9 within one year after his reinstatement resulting from any
10 cause other than injury incurred in the performance of an act
11 of duty.
12 A policeman who assumes regular employment for
13 compensation, while in receipt of ordinary or duty disability
14 benefits, shall not be entitled to receive any amount of such
15 disability benefits which, when added to his compensation for
16 such employment during disability, would exceed 150% of the
17 rate of salary which would be paid to him if he were working
18 in his regularly appointed civil service position as a
19 policeman; or, from and after January 1, 1970, the rate of
20 salary on which his disability benefit is based. The changes
21 made to this Section by this amendatory Act of 1998 are not
22 limited to persons in service on or after the effective date
23 of this amendatory Act.
24 Disability benefit shall not be paid for any part of time
25 for which a disabled policeman shall receive any part of his
26 salary.
27 Except as herein otherwise provided, disability benefit
28 shall not be paid for any disability based upon or caused by
29 any mental or physical defect which the policeman had at the
30 time he entered the police service.
31 Disability benefit shall not be allowed to any policeman
32 who re-enters the public service in any capacity where his
33 salary is payable in whole or in part by taxes levied upon
34 taxable property in the city in which this Article is in
35 effect, or out of special revenues of any department of the
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1 city. The disability benefit shall be suspended during the
2 period he is in the public service for compensation, and
3 shall be resumed when he withdraws from such service.
4 Any disability benefit paid in violation of this Section
5 or of this Article shall be construed to have been paid in
6 error, and the amounts so paid shall be charged as a debit in
7 the account of any person to whom the same was paid and shall
8 be deducted from any moneys thereafter payable to such person
9 out of this fund, or to the widow, heirs or estate of such
10 person.
11 (Source: P.A. 76-847.)
12 (40 ILCS 5/5-167.4) (from Ch. 108 1/2, par. 5-167.4)
13 Sec. 5-167.4. Widow annuitant minimum annuity.
14 (a) Notwithstanding any other provision of this Article,
15 beginning January 1, 1996, the minimum amount of widow's
16 annuity payable to any person who is entitled to receive a
17 widow's annuity under this Article is $700 per month, without
18 regard to whether the deceased policeman is in service on or
19 after the effective date of this amendatory Act of 1995.
20 Notwithstanding any other provision of this Article,
21 beginning January 1, 1999, the minimum amount of widow's
22 annuity payable to any person who is entitled to receive a
23 widow's annuity under this Article is $800 per month, without
24 regard to whether the deceased policeman is in service on or
25 after the effective date of this amendatory Act of 1998.
26 (b) Effective January 1, 1994, the minimum amount of
27 widow's annuity shall be $700 per month for the following
28 classes of widows, without regard to whether the deceased
29 policeman is in service on or after the effective date of
30 this amendatory Act of 1993: (1) the widow of a policeman who
31 dies in service with at least 10 years of service credit, or
32 who dies in service after June 30, 1981; and (2) the widow of
33 a policeman who withdraws from service with 20 or more years
34 of service credit and does not withdraw a refund, provided
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1 that the widow is married to the policeman before he
2 withdraws from service.
3 (c) The city, in addition to the contributions otherwise
4 made by it under the other provisions of this Article, shall
5 make such contributions as are necessary for the minimum
6 widow's annuities provided under this Section in the manner
7 prescribed in Section 5-175.
8 (Source: P.A. 89-12, eff. 4-20-95.)
9 (40 ILCS 5/5-168) (from Ch. 108 1/2, par. 5-168)
10 Sec. 5-168. Financing.
11 (a) Except as expressly provided in this Section, the
12 city shall levy a tax annually upon all taxable property
13 therein for the purpose of providing revenue for the fund.
14 The tax shall be at a rate that will produce a sum which,
15 when added to the amounts deducted from the policemen's
16 salaries and the amounts deposited in accordance with
17 subsection (g), is sufficient for the purposes of the fund.
18 For the years 1968 and 1969, the city council shall levy
19 a tax annually at a rate on the dollar of the assessed
20 valuation of all taxable property that will produce, when
21 extended, not to exceed $9,700,000. Beginning with the year
22 1970 and each year thereafter the city council shall levy a
23 tax annually at a rate on the dollar of the assessed
24 valuation of all taxable property that will produce when
25 extended an amount not to exceed the total amount of
26 contributions by the policemen to the Fund made in the
27 calendar year 2 years before the year for which the
28 applicable annual tax is levied, multiplied by 1.40 for the
29 tax levy year 1970; by 1.50 for the year 1971; by 1.65 for
30 1972; by 1.85 for 1973; by 1.90 for 1974; by 1.97 for 1975
31 through 1981; by 2.00 for 1982 and for each year thereafter.
32 (b) The tax shall be levied and collected in like manner
33 with the general taxes of the city, and is in addition to all
34 other taxes which the city is now or may hereafter be
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1 authorized to levy upon all taxable property therein, and is
2 exclusive of and in addition to the amount of tax the city is
3 now or may hereafter be authorized to levy for general
4 purposes under any law which may limit the amount of tax
5 which the city may levy for general purposes. The county
6 clerk of the county in which the city is located, in reducing
7 tax levies under Section 8-3-1 of the Illinois Municipal
8 Code, shall not consider the tax herein authorized as a part
9 of the general tax levy for city purposes, and shall not
10 include the tax in any limitation of the percent of the
11 assessed valuation upon which taxes are required to be
12 extended for the city.
13 (c) On or before January 10 of each year, the board
14 shall notify the city council of the requirement that the tax
15 herein authorized be levied by the city council for that
16 current year. The board shall compute the amounts necessary
17 for the purposes of this fund to be credited to the reserves
18 established and maintained within the fund; shall make an
19 annual determination of the amount of the required city
20 contributions; and shall certify the results thereof to the
21 city council.
22 As soon as any revenue derived from the tax is collected
23 it shall be paid to the city treasurer of the city and shall
24 be held by him for the benefit of the fund in accordance with
25 this Article.
26 (d) If the funds available are insufficient during any
27 year to meet the requirements of this Article, the city may
28 issue tax anticipation warrants against the tax levy for the
29 current fiscal year.
30 (e) The various sums, including interest, to be
31 contributed by the city, shall be taken from the revenue
32 derived from such tax or otherwise as expressly provided in
33 this Section. Any moneys of the city derived from any source
34 other than the tax herein authorized shall not be used for
35 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
35 in 2007; $2,520,000 in 2008; $2,100,000 in 2009; $1,680,000
-17- LRB9011159EGfgccr6
1 in 2010; $1,260,000 in 2011; $840,000 in 2012; and $420,000
2 in 2013.
3 The additional city contributions required under this
4 subsection are intended to decrease the unfunded liability of
5 the fund and shall not decrease the amount of the city
6 contributions required under the other provisions of this
7 Article. The additional city contributions made under this
8 subsection may be used by the fund for any its lawful
9 purposes.
10 (Source: P.A. 89-12, eff. 4-20-95.)
11 (40 ILCS 5/5-172) (from Ch. 108 1/2, par. 5-172)
12 Sec. 5-172. Contributions by city for duty and
13 occupational disease disability benefits and supplemental
14 annuity. In lieu of salary deductions for annuity purposes,
15 the city shall contribute the required amounts for any period
16 during which a policeman receives a duty disability benefit
17 or occupational disease disability benefit. The
18 contributions shall be credited to the disabled policeman and
19 shall be regarded for all purposes hereof as sums deducted
20 from his salary.
21 The city shall also contribute all amounts ordinarily
22 contributed by it for annuity purposes for the policeman as
23 though he were in active discharge of his duties during such
24 disability.
25 To provide supplemental annuity, the city shall
26 contribute such equal sums annually, from the date of the
27 policeman's death, which if improved by interest will be
28 sufficient, when payment of compensation annuity ceases, to
29 provide supplemental annuity to the widow for life.
30 (Source: P.A. 81-1536.)
31 (40 ILCS 5/5-204) (from Ch. 108 1/2, par. 5-204)
32 Sec. 5-204. Duty disability reserve. Amounts contributed
33 by the city for duty disability benefit, occupational disease
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1 disability benefit, child's disability benefit, and
2 compensation annuity shall be credited to this reserve, and
3 all such benefits and annuities shall be charged to it.
4 (Source: Laws 1963, p. 161.)
5 (40 ILCS 5/6-128.4) (from Ch. 108 1/2, par. 6-128.4)
6 Sec. 6-128.4. Minimum widow's annuities.
7 (a) Notwithstanding any other provision of this Article,
8 beginning January 1, 1996, the minimum amount of widow's
9 annuity payable to any person who is entitled to receive a
10 widow's annuity under this Article is $700 per month, without
11 regard to whether the deceased fireman is in service on or
12 after the effective date of this amendatory Act of 1995.
13 (b) Notwithstanding Section 6-128.3, beginning January
14 1, 1994, the minimum widow's annuity under this Article shall
15 be $700 per month for (1) all persons receiving widow's
16 annuities on that date who are survivors of employees who
17 retired at age 50 or over with at least 20 years of service,
18 and (2) persons who become eligible for widow's annuities and
19 are survivors of employees who retired at age 50 or over with
20 at least 20 years of service.
21 (c) Notwithstanding Section 6-128.3, beginning January
22 1, 1999, the minimum widow's annuity under this Article shall
23 be $800 per month for (1) all persons receiving widow's
24 annuities on that date who are survivors of employees who
25 retired at age 50 or over with at least 20 years of service,
26 and (2) persons who become eligible for widow's annuities and
27 are survivors of employees who retired at age 50 or over with
28 at least 20 years of service.
29 (Source: P.A. 89-136, eff. 7-14-95.)
30 (40 ILCS 5/6-165) (from Ch. 108 1/2, par. 6-165)
31 Sec. 6-165. Financing; tax.
32 (a) Except as expressly provided in this Section, each
33 city shall levy a tax annually upon all taxable property
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1 therein for the purpose of providing revenue for the fund.
2 For the years prior to the year 1960, the tax rate shall be
3 as provided for in the "Firemen's Annuity and Benefit Fund of
4 the Illinois Municipal Code". The tax, from and after
5 January 1, 1968 to and including the year 1971, shall not
6 exceed .0863% of the value, as equalized or assessed by the
7 Department of Revenue, of all taxable property in the city.
8 Beginning with the year 1972 and each year thereafter the
9 city shall levy a tax annually at a rate on the dollar of the
10 value, as equalized or assessed by the Department of Revenue
11 of all taxable property within such city that will produce,
12 when extended, not to exceed an amount equal to the total
13 amount of contributions by the employees to the fund made in
14 the calendar year 2 years prior to the year for which the
15 annual applicable tax is levied, multiplied by 2.23 through
16 the calendar year 1981, and by 2.26 for the year 1982 and for
17 each year thereafter.
18 To provide revenue for the ordinary death benefit
19 established by Section 6-150 of this Article, in addition to
20 the contributions by the firemen for this purpose, the city
21 council shall for the year 1962 and each year thereafter
22 annually levy a tax, which shall be in addition to and
23 exclusive of the taxes authorized to be levied under the
24 foregoing provisions of this Section, upon all taxable
25 property in the city, as equalized or assessed by the
26 Department of Revenue, at such rate per cent of the value of
27 such property as shall be sufficient to produce for each year
28 the sum of $142,000.
29 The amounts produced by the taxes levied annually,
30 together with the deposit expressly authorized in this
31 Section, shall be sufficient, when added to the amounts
32 deducted from the salaries of firemen and applied to the
33 fund, to provide for the purposes of the fund.
34 (b) The taxes shall be levied and collected in like
35 manner with the general taxes of the city, and shall be in
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1 addition to all other taxes which the city may levy upon all
2 taxable property therein and shall be exclusive of and in
3 addition to the amount of tax the city may levy for general
4 purposes under Section 8-3-1 of the Illinois Municipal Code,
5 approved May 29, 1961, as amended, or under any other law or
6 laws which may limit the amount of tax which the city may
7 levy for general purposes.
8 (c) The amounts of the taxes to be levied in each year
9 shall be certified to the city council by the board.
10 (d) As soon as any revenue derived from such taxes is
11 collected, it shall be paid to the city treasurer and held
12 for the benefit of the fund, and all such revenue shall be
13 paid into the fund in accordance with the provisions of this
14 Article.
15 (e) If the funds available are insufficient during any
16 year to meet the requirements of this Article, the city may
17 issue tax anticipation warrants, against the tax levies
18 herein authorized for the current fiscal year.
19 (f) The various sums, hereinafter stated, including
20 interest, to be contributed by the city, shall be taken from
21 the revenue derived from the taxes or otherwise as expressly
22 provided in this Section. Except for defraying the cost of
23 administration of the fund during the calendar year in which
24 a city first attains a population of 500,000 and comes under
25 the provisions of this Article and the first calendar year
26 thereafter, any money of the city derived from any source
27 other than these taxes or the sale of tax anticipation
28 warrants shall not be used to provide revenue for the fund,
29 nor to pay any part of the cost of administration thereof,
30 unless applied to make the deposit expressly authorized in
31 this Section or the additional city contributions required
32 under subsection (h).
33 (g) In lieu of levying all or a portion of the tax
34 required under this Section in any year, the city may deposit
35 with the city treasurer no later than March 1 of that year
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1 for the benefit of the fund, to be held in accordance with
2 this Article, an amount that, together with the taxes levied
3 under this Section for that year, is not less than the amount
4 of the city contributions for that year as certified by the
5 board to the city council. The deposit may be derived from
6 any source legally available for that purpose, including, but
7 not limited to, the proceeds of city borrowings. The making
8 of a deposit shall satisfy fully the requirements of this
9 Section for that year to the extent of the amounts so
10 deposited. Amounts deposited under this subsection may be
11 used by the fund for any of the purposes for which the
12 proceeds of the taxes levied under this Section may be used,
13 including the payment of any amount that is otherwise
14 required by this Article to be paid from the proceeds of
15 those taxes.
16 (h) In addition to the contributions required under the
17 other provisions of this Article, by November 1 of the
18 following specified years, the city shall deposit with the
19 city treasurer for the benefit of the fund, to be held and
20 used in accordance with this Article, the following specified
21 amounts: $6,300,000 in 1999; $5,880,000 in 2000; $5,460,000
22 in 2001; $5,040,000 in 2002; $4,620,000 in 2003; $4,200,000
23 in 2004; $3,780,000 in 2005; $3,360,000 in 2006; $2,940,000
24 in 2007; $2,520,000 in 2008; $2,100,000 in 2009; $1,680,000
25 in 2010; $1,260,000 in 2011; $840,000 in 2012; and $420,000
26 in 2013.
27 The additional city contributions required under this
28 subsection are intended to decrease the unfunded liability of
29 the fund and shall not decrease the amount of the city
30 contributions required under the other provisions of this
31 Article. The additional city contributions made under this
32 subsection may be used by the fund for any its lawful
33 purposes.
34 (Source: P.A. 89-136, eff. 7-14-95.)
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1 (40 ILCS 5/7-146) (from Ch. 108 1/2, par. 7-146)
2 Sec. 7-146. Temporary disability benefits - Eligibility.
3 Temporary disability benefits shall be payable to
4 participating employees as hereinafter provided.
5 (a) The participating employee shall be considered
6 temporarily disabled if:
7 1. He is unable to perform the duties of any position
8 which might reasonably be assigned to him by his employing
9 municipality or instrumentality thereof or participating
10 instrumentality due to mental or physical disability caused
11 by bodily injury or disease, other than as a result of
12 self-inflicted injury or addiction to narcotic drugs;
13 2. The Board has received written certifications from at
14 least 1 licensed and practicing physician and the governing
15 body of the employing municipality or instrumentality thereof
16 or participating instrumentality stating that the employee
17 meets the conditions set forth in subparagraph 1 of this
18 paragraph (a).
19 (b) A temporary disability benefit shall be payable to a
20 temporarily disabled employee provided:
21 1. He:
22 (i) has at least one 1 year of service immediately
23 preceding at the date the temporary disability was incurred
24 and has made contributions to the fund for at least the
25 number of months of service normally required in his position
26 during a 12-month period, or has at least 5 years of service
27 credit, the last year of which immediately precedes such
28 date; or
29 (ii) had qualified under clause (i) above, but had an
30 interruption in service with the same participating
31 municipality or participating instrumentality of not more
32 than 3 months in the 12 months preceding the date the
33 temporary disability was incurred and was not paid a
34 separation benefit; or
35 (iii) had qualified under clause (i) above, but had an
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1 interruption after 20 or more years of creditable service,
2 was not paid a separation benefit, and returned to service
3 prior to the date the disability was incurred.
4 Item (iii) of this subdivision shall apply to all
5 employees whose disabilities were incurred on or after July
6 1, 1985, and any such employee who becomes eligible for a
7 disability benefit under item (iii) shall be entitled to
8 receive a lump sum payment of any accumulated disability
9 benefits which may accrue from the date the disability was
10 incurred until the effective date of this amendatory Act of
11 1987.
12 Periods of qualified leave granted in compliance with the
13 federal Family and Medical Leave Act shall be ignored for
14 purposes of determining the number of consecutive months of
15 employment under this subdivision (b)1.
16 2. He has been temporarily disabled for at least 30
17 days, except where a former temporary or permanent and total
18 disability has reoccurred within 6 months after the employee
19 has returned to service.
20 3. He is receiving no earnings from a participating
21 municipality or instrumentality thereof or participating
22 instrumentality, except as allowed under subsection (f) of
23 Section 7-152.
24 4. He has not refused to submit to a reasonable physical
25 examination by a physician appointed by the Board.
26 5. His disability is not the result of a mental or
27 physical condition which existed on the earliest date of
28 service from which he has uninterrupted service, including
29 prior service, at the date of his disability, provided that
30 this limitation shall not be applicable to a participating
31 employee who: (i) on the date of disability has 5 years of
32 creditable service, exclusive of creditable service for
33 periods of disability; or (ii) received no medical treatment
34 for the condition for the 3 years immediately prior to such
35 earliest date of service.
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1 6. He is not separated from the service of the
2 participating municipality or instrumentality thereof or
3 participating instrumentality which employed him on the date
4 his temporary disability was incurred; for the purposes of
5 payment of temporary disability benefits, a participating
6 employee, whose employment relationship is terminated by his
7 employing municipality, shall be deemed not to be separated
8 from the service of his employing municipality or
9 participating instrumentality if he continues disabled by the
10 same condition and so long as he is otherwise entitled to
11 such disability benefit.
12 (Source: P.A. 86-272; 87-740.)
13 (40 ILCS 5/7-150) (from Ch. 108 1/2, par. 7-150)
14 Sec. 7-150. Total and permanent disability benefits -
15 Eligibility. Total and permanent disability benefits shall be
16 payable to participating employees as hereinafter provided,
17 including those employees receiving disability benefit on
18 July 1, 1962.
19 (a) A participating employee shall be considered totally
20 and permanently disabled if:
21 1. He is unable to engage in any gainful activity
22 because of any medically determinable physical or mental
23 impairment which can be expected to result in death or be of
24 a long continued and indefinite duration, other than as a
25 result of self-inflicted injury or addiction to narcotic
26 drugs;
27 2. The Board has received a written certification by at
28 least 1 licensed and practicing physician stating that the
29 employee meets the qualifications of subparagraph 1 of this
30 paragraph (a).
31 (b) A totally and permanently disabled employee is
32 entitled to a permanent disability benefit provided:
33 1. He has exhausted his temporary disability benefits.
34 2. He:
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1 (i) has at least one year of service immediately
2 preceding the date the disability was incurred and has made
3 contributions to the fund for at least the number of months
4 of service normally required in his position during a 12
5 month period, or has at least 5 years of service credit, the
6 last year of which immediately preceded the date the
7 disability was incurred; or
8 (ii) had qualified under clause (i) above, but had an
9 interruption in service with the same participating
10 municipality or participating instrumentality of not more
11 than 3 months in the 12 months preceding the date the
12 temporary disability was incurred and was not paid a
13 separation benefit; or
14 (iii) had qualified under clause (i) above, but had an
15 interruption after 20 or more years of creditable service,
16 was not paid a separation benefit, and returned to service
17 prior to the date the disability was incurred.
18 Item (iii) of this subdivision shall apply to all
19 employees whose disabilities were incurred on or after July
20 1, 1985, and any such employee who becomes eligible for a
21 disability benefit under item (iii) shall be entitled to
22 receive a lump sum payment of any accumulated disability
23 benefits which may accrue from the date the disability was
24 incurred until the effective date of this amendatory Act of
25 1987.
26 Periods of qualified leave granted in compliance with the
27 federal Family and Medical Leave Act shall be ignored for
28 purposes of determining the number of consecutive months of
29 employment under this subdivision (b)2.
30 3. He is receiving no earnings from a participating
31 municipality or instrumentality thereof or participating
32 instrumentality, except as allowed under subsection (f) of
33 Section 7-152.
34 4. He has not refused to submit to a reasonable physical
35 examination by a physician appointed by the Board.
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1 5. His disability is not the result of a mental or
2 physical condition which existed on the earliest date of
3 service from which he has uninterrupted service, including
4 prior service, at the date of his disability, provided that
5 this limitation shall not be applicable to a participating
6 employee who, without receiving a disability benefit,
7 receives 5 years of creditable service.
8 6. He is not separated from the service of his employing
9 participating municipality or instrumentality thereof or
10 participating instrumentality on the date his temporary
11 disability was incurred; for the purposes of payment of total
12 and permanent disability benefits, a participating employee,
13 whose employment relationship is terminated by his employing
14 municipality, shall be deemed not to be separated from the
15 service of his employing municipality or participating
16 instrumentality if he continues disabled by the same
17 condition and so long as he is otherwise entitled to such
18 disability benefit.
19 7. He has not refused to apply for a disability benefit
20 under the Federal Social Security Act at the request of the
21 Board.
22 (c) A participating employee shall remain eligible and
23 may make application for a total and permanent disability
24 benefit within 90 days after the termination of his temporary
25 disability benefits or within such longer period terminating
26 at the end of the period during which his employing
27 municipality is prevented from employing him by reason of any
28 statutory prohibition.
29 (Source: P.A. 86-272; 87-740.)
30 (40 ILCS 5/7-159) (from Ch. 108 1/2, par. 7-159)
31 Sec. 7-159. Surviving spouse annuity - refund of survivor
32 credits.
33 (a) Any employee annuitant who (1) upon the date a
34 retirement annuity begins is not then married, or (2) is
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1 married to a person who would not qualify for surviving
2 spouse annuity if the person died on such date, is entitled
3 to a refund of the survivor credits including interest
4 accumulated on the date the annuity begins, excluding
5 survivor credits and interest thereon credited during periods
6 of disability, and no spouse shall have a right to any
7 surviving spouse annuity from this Fund. If the employee
8 annuitant reenters service and upon subsequent retirement has
9 a spouse who would qualify for a surviving spouse annuity,
10 the employee annuitant may pay the fund the amount of the
11 refund plus interest at the effective rate at the date of
12 payment. The payment shall qualify the spouse for a
13 surviving spouse annuity and the amount paid shall be
14 considered as survivor contributions.
15 (b) Instead of a refund under subsection (a), the
16 retiring employee may elect to convert the amount of the
17 refund into an annuity, payable separately from the
18 retirement annuity. If the annuitant dies before the
19 guaranteed amount has been distributed, the remainder shall
20 be paid in a lump sum to the designated beneficiary of the
21 annuitant. The Board shall adopt any rules necessary for the
22 implementation of this subsection.
23 (Source: P. A. 77-2121.)
24 (40 ILCS 5/7-173.1) (from Ch. 108 1/2, par. 7-173.1)
25 Sec. 7-173.1. Additional contribution by sheriff's law
26 enforcement employees.
27 (a) Each sheriff's law enforcement employee shall make
28 an additional contribution of 1% of earnings, which shall be
29 considered as normal contributions. For earnings on or after
30 July 1, 1988, the additional contribution shall be 2% of
31 earnings.
32 This additional contribution shall be payable for
33 retroactive service periods which the employee elects to
34 establish and to periods of authorized leave of absence.
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1 (b) If the employee is awarded a retirement annuity
2 under Section 7-142 and not under Section 7-142.1, then the
3 additional contribution required under this Section shall be
4 refunded with interest or paid as provided in subsection (c).
5 If the employee returns to a participating status as a
6 sheriff's law enforcement employee, the employee may repay
7 the amount refunded with interest and upon subsequent
8 retirement be entitled to a recomputation of the retirement
9 annuity under Section 7-142.1 if the total service as a
10 sheriff's law enforcement employee meets the requirements of
11 that Section.
12 (c) Instead of a refund under subsection (b), the
13 retiring employee may elect to convert the amount of the
14 refund into an annuity, payable separately from the
15 retirement annuity. If the annuitant dies before the
16 guaranteed amount has been distributed, the remainder shall
17 be paid in a lump sum to the designated beneficiary of the
18 annuitant. The Board shall adopt any rules necessary for the
19 implementation of this subsection.
20 (Source: P.A. 85-941.)
21 (40 ILCS 5/7-173.2) (from Ch. 108 1/2, par. 7-173.2)
22 Sec. 7-173.2. Pickup of employee contributions.
23 (a) Until July 1, 1984, each participating municipality
24 and each participating instrumentality may elect, for all of
25 its employees, to pick up the employee contributions required
26 by subparagraphs 1 and 3 of subsection (a) of Section 7-173
27 and, in the case of sheriff's law enforcement employees,
28 required by Section 7-173.1. The pick up may be for employee
29 contributions on earnings received by employees after
30 December 31, 1981 and shall be applicable to the
31 contributions on total earnings paid in any month. The
32 decision to pick up contributions shall be made by the
33 governing body.
34 Beginning July 1, 1984, the pick up of employee
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1 contributions shall cease to be optional. Each participating
2 municipality and participating instrumentality shall pick up
3 the employee contributions required by subparagraphs 1 and 3
4 of subsection (a) of Section 7-173 and, in the case of
5 sheriff's law enforcement employees, contributions required
6 by Section 7-173.1, for all compensation earned after such
7 date.
8 (b) Contributions that are picked up shall be treated as
9 employer contributions in determining tax treatment under the
10 United States Internal Revenue Code. The employee
11 contribution shall be paid from the same source of funds as
12 is used in payment of earnings to the employee and may not be
13 paid from funds raised by the tax levy authorized by Section
14 7-171. The contributions shall be picked up by a reduction
15 in earnings payment to employees. Employee contributions
16 that are picked up shall be considered as earnings under
17 Section 7-114. The pick up shall not apply to contributions
18 made for additional contributions under subsection (a) 2 of
19 Section 7-173, authorized leave of absence under subsection
20 (a)4 of Section 7-139, out-of-state service under subsection
21 (a) 6 of Section 7-139, retroactive service under subsection
22 (a) 7 of Section 7-139 or repayments of separation of
23 benefits under Section 7-109. If a participating
24 municipality or participating instrumentality fails to report
25 participating employee earnings which should have been
26 reported to the fund and pays the employee the full amount of
27 earnings including employee contributions which should have
28 been picked up and forwarded to the fund, then the employee
29 shall make payment of the employee contributions to the fund
30 on behalf of employer and such contributions shall be
31 considered as picked up contributions if paid in the year the
32 earnings were received, or by January 31st of the following
33 year, and are reflected as picked up on reports to the
34 Internal Revenue Service. If they cannot be so reflected, or
35 if received after that date, they shall not be treated as
-30- LRB9011159EGfgccr6
1 picked up contributions. Picked up employee contributions
2 shall be considered as employee contributions in computing
3 benefits paid under this Article 7.
4 (c) Subject to the requirements of federal law, an
5 employee may elect to have the employer pick up optional
6 contributions that the employee has elected to pay to the
7 Fund, and the contributions so picked up shall be treated as
8 employer contributions for the purposes of determining
9 federal tax treatment. The employer shall pick up the
10 contributions by a reduction in the cash salary of the
11 employee and shall pay the contributions from the same source
12 of funds that is used to pay earnings to the employee. The
13 employee's election to have the optional contributions picked
14 up is irrevocable and the optional contributions may not
15 thereafter be prepaid, by direct payment or otherwise.
16 (Source: P.A. 84-812.)
17 (40 ILCS 5/8-137) (from Ch. 108 1/2, par. 8-137)
18 Sec. 8-137. Automatic increase in annuity.
19 (a) An employee who retired or retires from service
20 after December 31, 1959 and before January 1, 1987, having
21 attained age 60 or more, shall, in January of the year after
22 the year in which the first anniversary of retirement occurs,
23 have the amount of his then fixed and payable monthly annuity
24 increased by 1 1/2%, and such first fixed annuity as granted
25 at retirement increased by a further 1 1/2% in January of
26 each year thereafter. Beginning with January of the year
27 1972, such increases shall be at the rate of 2% in lieu of
28 the aforesaid specified 1 1/2%, and beginning with January of
29 the year 1984 such increases shall be at the rate of 3%.
30 Beginning in January of 1999, such increases shall be at the
31 rate of 3% of the currently payable monthly annuity,
32 including any increases previously granted under this
33 Article. An such employee who retires on annuity after
34 December 31, 1959 and before January 1, 1987, but before age
-31- LRB9011159EGfgccr6
1 60, shall receive such increases beginning in January of the
2 year after the year in which he attains age 60.
3 An employee who retires from service on or after January
4 1, 1987 shall, upon the first annuity payment date following
5 the first anniversary of the date of retirement, or upon the
6 first annuity payment date following attainment of age 60,
7 whichever occurs later, have his then fixed and payable
8 monthly annuity increased by 3%, and such annuity shall be
9 increased by an additional 3% of the original fixed annuity
10 on the same date each year thereafter. Beginning in January
11 of 1999, such increases shall be at the rate of 3% of the
12 currently payable monthly annuity, including any increases
13 previously granted under this Article.
14 (b) The foregoing provision is not applicable to an
15 employee retiring and receiving a term annuity, as herein
16 defined, nor to any otherwise qualified employee who retires
17 before he makes employee contributions (at the 1/2 of 1% rate
18 as provided in this Act) for this additional annuity for not
19 less than the equivalent of one full year. Such employee,
20 however, shall make arrangement to pay to the fund a balance
21 of such 1/2 of 1% contributions, based on his final salary,
22 as will bring such 1/2 of 1% contributions, computed without
23 interest, to the equivalent of or completion of one year's
24 contributions.
25 Beginning with January, 1960, each employee shall
26 contribute by means of salary deductions 1/2 of 1% of each
27 salary payment, concurrently with and in addition to the
28 employee contributions otherwise made for annuity purposes.
29 Each such additional contribution shall be credited to an
30 account in the prior service annuity reserve, to be used,
31 together with city contributions, to defray the cost of the
32 specified annuity increments. Any balance in such account at
33 the beginning of each calendar year shall be credited with
34 interest at the rate of 3% per annum.
35 Such additional employee contributions are not
-32- LRB9011159EGfgccr6
1 refundable, except to an employee who withdraws and applies
2 for refund under this Article, and in cases where a term
3 annuity becomes payable. In such cases his contributions
4 shall be refunded, without interest, and charged to such
5 account in the prior service annuity reserve.
6 (Source: P.A. 84-1472.)
7 (40 ILCS 5/8-137.1) (from Ch. 108 1/2, par. 8-137.1)
8 Sec. 8-137.1. Automatic increases in annuity for certain
9 heretofore retired participants. A retired municipal
10 employee who (a) is receiving annuity based on a service
11 credit of 20 or more years regardless of age at retirement or
12 based on a service credit of 15 or more years with retirement
13 at age 55 or over, and (b) does not qualify for the automatic
14 increases in annuity provided for in Section 8-137 of this
15 Article, and (c) elects to make a contribution to the Fund at
16 a time and manner prescribed by the Retirement Board, of a
17 sum equal to 1% of the amount of final monthly salary times
18 the number of full years of service on which the annuity was
19 based in those cases where the annuity was computed on the
20 money purchase formula and in those cases in which the
21 annuity was computed under the minimum annuity formula
22 provisions of this Article a sum equal to 1% of the average
23 monthly salary on which the annuity was based times such
24 number of full years of service, shall have his original
25 fixed and payable monthly amount of annuity increased in
26 January of the year following the year in which he attains
27 the age of 65 years, if such age of 65 years is attained in
28 the year 1969 or later, by an amount equal to 1-1/2%, and by
29 an equal additional 1-1/2% in January of each year
30 thereafter. Beginning with January of the year 1972, such
31 increases shall be at the rate of 2% in lieu of the aforesaid
32 specified 1 1/2%, and beginning January of the year 1984 such
33 increases shall be at the rate of 3%. Beginning in January
34 of 1999, such increases shall be at the rate of 3% of the
-33- LRB9011159EGfgccr6
1 currently payable monthly annuity, including any increases
2 previously granted under this Article.
3 Whenever the retired municipal employee receiving annuity
4 has attained the age of 66 or more in 1969, he shall have
5 such annuity increased in January, 1970 by an amount equal to
6 1-1/2% multiplied by the number equal to the number of months
7 of January elapsing from and including January of the year
8 immediately following the year he attained the age of 65 if
9 retired at or before age 65, or from and including January of
10 the year immediately following the year of retirement if
11 retired at an age greater than 65, to and including January,
12 1970, and by an equal additional 1-1/2% in January of each
13 year thereafter. Beginning with January of the year 1972,
14 such increases shall be at the rate of 2% in lieu of the
15 aforesaid specified 1 1/2%, and beginning January of the year
16 1984 such increases shall be at the rate of 3%. Beginning in
17 January of 1999, such increases shall be at the rate of 3% of
18 the currently payable monthly annuity, including any
19 increases previously granted under this Article.
20 To defray the annual cost of such increases, the annual
21 interest income of the Fund, accruing from investments held
22 by the Fund, exclusive of gains or losses on sales or
23 exchanges of assets during the year, over and above 4% a
24 year, shall be used to the extent necessary and available to
25 finance the cost of such increases for the following year,
26 and such amount shall be transferred as of the end of each
27 year, beginning with the year 1969, to a Fund account
28 designated as the Supplementary Payment Reserve from the
29 Investment and Interest Reserve set forth in Section 8-221.
30 The sums contributed by annuitants as provided for in this
31 Section shall also be placed in the aforesaid Supplementary
32 Payment Reserve and shall be applied and used for the
33 purposes of such Fund account, together with the aforesaid
34 interest.
35 In the event the monies in the Supplementary Payment
-34- LRB9011159EGfgccr6
1 Reserve in any year arising from: (1) the available interest
2 income as defined hereinbefore and accruing in the preceding
3 year above 4% a year and (2) the contributions by retired
4 persons, as set forth hereinbefore, are insufficient to make
5 the total payments to all persons estimated to be entitled to
6 the annuity increases specified hereinbefore, then (3) any
7 interest earnings over 4% a year beginning with the year 1969
8 which were not previously used to finance such increases and
9 which were transferred to the Prior Service Annuity Reserve
10 may be used to the extent necessary and available to provide
11 sufficient funds to finance such increases for the current
12 year, and such sums shall be transferred from the Prior
13 Service Annuity Reserve.
14 In the event the total monies available in the
15 Supplementary Payment Reserve from the preceding indicated
16 sources are insufficient to make the total payments to all
17 persons entitled to such increases for the year, a
18 proportionate amount computed as the ratio of the monies
19 available to the total of the total payments for that year
20 shall be paid to each person for that year.
21 The Fund shall be obligated for the payment of the
22 increases in annuity as provided for in this Section only to
23 the extent that the assets for such purpose, as specified
24 herein, are available.
25 (Source: P.A. 83-802.)
26 (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
27 Sec. 8-138. Minimum annuities - Additional provisions.
28 (a) An employee who withdraws after age 65 or more with
29 at least 20 years of service, for whom the amount of age and
30 service and prior service annuity combined is less than the
31 amount stated in this Section, shall from the date of
32 withdrawal, instead of all annuities otherwise provided, be
33 entitled to receive an annuity for life of $150 a year, plus
34 1 1/2% for each year of service, to and including 20 years,
-35- LRB9011159EGfgccr6
1 and 1 2/3% for each year of service over 20 years, of his
2 highest average annual salary for any 4 consecutive years
3 within the last 10 years of service immediately preceding the
4 date of withdrawal.
5 An employee who withdraws after 20 or more years of
6 service, before age 65, shall be entitled to such annuity, to
7 begin not earlier than upon attained age of 55 years if under
8 such age at withdrawal, reduced by 2% for each full year or
9 fractional part thereof that his attained age is less than
10 65, plus an additional 2% reduction for each full year or
11 fractional part thereof that his attained age when annuity is
12 to begin is less than 60 so that the total reduction at age
13 55 shall be 30%.
14 (b) An employee who withdraws after July 1, 1957, at age
15 60 or over, with 20 or more years of service, for whom the
16 age and service and prior service annuity combined, is less
17 than the amount stated in this paragraph, shall, from the
18 date of withdrawal, instead of such annuities, be entitled to
19 receive an annuity for life equal to 1 2/3% for each year of
20 service, of the highest average annual salary for any 5
21 consecutive years within the last 10 years of service
22 immediately preceding the date of withdrawal; provided, that
23 in the case of any employee who withdraws on or after July 1,
24 1971, such employee age 60 or over with 20 or more years of
25 service, shall receive an annuity for life equal to 1.67% for
26 each of the first 10 years of service; 1.90% for each of the
27 next 10 years of service; 2.10% for each year of service in
28 excess of 20 but not exceeding 30; and 2.30% for each year of
29 service in excess of 30, based on the highest average annual
30 salary for any 4 consecutive years within the last 10 years
31 of service immediately preceding the date of withdrawal.
32 An employee who withdraws after July 1, 1957 and before
33 January 1, 1988, with 20 or more years of service, before age
34 60 years is entitled to annuity, to begin not earlier than
35 upon attained age of 55 years, if under such age at
-36- LRB9011159EGfgccr6
1 withdrawal, as computed in the last preceding paragraph,
2 reduced 0.25% for each full month or fractional part thereof
3 that his attained age when annuity is to begin is less than
4 60 if the employee was born before January 1, 1936, or 0.5%
5 for each such month if the employee was born on or after
6 January 1, 1936.
7 Any employee born before January 1, 1936, who withdraws
8 with 20 or more years of service, and any employee with 20 or
9 more years of service who withdraws on or after January 1,
10 1988, may elect to receive, in lieu of any other employee
11 annuity provided in this Section, an annuity for life equal
12 to 1.80% for each of the first 10 years of service, 2.00% for
13 each of the next 10 years of service, 2.20% for each year of
14 service in excess of 20 but not exceeding 30, and 2.40% for
15 each year of service in excess of 30, of the highest average
16 annual salary for any 4 consecutive years within the last 10
17 years of service immediately preceding the date of
18 withdrawal, to begin not earlier than upon attained age of 55
19 years, if under such age at withdrawal, reduced 0.25% for
20 each full month or fractional part thereof that his attained
21 age when annuity is to begin is less than 60; except that an
22 employee retiring on or after January 1, 1988, at age 55 or
23 over but less than age 60, having at least 35 years of
24 service, or an employee retiring on or after July 1, 1990, at
25 age 55 or over but less than age 60, having at least 30 years
26 of service, or an employee retiring on or after the effective
27 date of this amendatory Act of 1997, at age 55 or over but
28 less than age 60, having at least 25 years of service, shall
29 not be subject to the reduction in retirement annuity because
30 of retirement below age 60.
31 However, in the case of an employee who retired on or
32 after January 1, 1985 but before January 1, 1988, at age 55
33 or older and with at least 35 years of service, and who was
34 subject under this subsection (b) to the reduction in
35 retirement annuity because of retirement below age 60, that
-37- LRB9011159EGfgccr6
1 reduction shall cease to be effective January 1, 1991, and
2 the retirement annuity shall be recalculated accordingly.
3 Any employee who withdraws on or after July 1, 1990, with
4 20 or more years of service, may elect to receive, in lieu of
5 any other employee annuity provided in this Section, an
6 annuity for life equal to 2.20% for each year of service of
7 the highest average annual salary for any 4 consecutive years
8 within the last 10 years of service immediately preceding the
9 date of withdrawal, to begin not earlier than upon attained
10 age of 55 years, if under such age at withdrawal, reduced
11 0.25% for each full month or fractional part thereof that his
12 attained age when annuity is to begin is less than 60; except
13 that an employee retiring at age 55 or over but less than age
14 60, having at least 30 years of service, shall not be subject
15 to the reduction in retirement annuity because of retirement
16 below age 60.
17 Any employee who withdraws on or after the effective date
18 of this amendatory Act of 1997 with 20 or more years of
19 service may elect to receive, in lieu of any other employee
20 annuity provided in this Section, an annuity for life equal
21 to 2.20%, for each year of service, of the highest average
22 annual salary for any 4 consecutive years within the last 10
23 years of service immediately preceding the date of
24 withdrawal, to begin not earlier than upon attainment of age
25 55 (age 50 if the employee has at least 30 years of service),
26 reduced 0.25% for each full month or remaining fractional
27 part thereof that the employee's attained age when annuity is
28 to begin is less than 60; except that an employee retiring at
29 age 50 or over with at least 30 years of service or at age 55
30 or over with at least 25 years of service shall not be
31 subject to the reduction in retirement annuity because of
32 retirement below age 60.
33 The maximum annuity payable under part (a) and (b) of
34 this Section shall not exceed 70% of highest average annual
35 salary in the case of an employee who withdraws prior to July
-38- LRB9011159EGfgccr6
1 1, 1971, and 75% if withdrawal takes place on or after July
2 1, 1971. For the purpose of the minimum annuity provided in
3 this Section $1,500 is considered the minimum annual salary
4 for any year; and the maximum annual salary for the
5 computation of such annuity is $4,800 for any year before
6 1953, $6000 for the years 1953 to 1956, inclusive, and the
7 actual annual salary, as salary is defined in this Article,
8 for any year thereafter.
9 To preserve rights existing on December 31, 1959, for
10 participants and contributors on that date to the fund
11 created by the Court and Law Department Employees' Annuity
12 Act, who became participants in the fund provided for on
13 January 1, 1960, the maximum annual salary to be considered
14 for such persons for the years 1955 and 1956 is $7,500.
15 (c) For an employee receiving disability benefit, his
16 salary for annuity purposes under paragraphs (a) and (b) of
17 this Section, for all periods of disability benefit
18 subsequent to the year 1956, is the amount on which his
19 disability benefit was based.
20 (d) An employee with 20 or more years of service, whose
21 entire disability benefit credit period expires before
22 attainment of age 55 while still disabled for service, is
23 entitled upon withdrawal to the larger of (1) the minimum
24 annuity provided above, assuming he is then age 55, and
25 reducing such annuity to its actuarial equivalent as of his
26 attained age on such date or (2) the annuity provided from
27 his age and service and prior service annuity credits.
28 (e) The minimum annuity provisions do not apply to any
29 former municipal employee receiving an annuity from the fund
30 who re-enters service as a municipal employee, unless he
31 renders at least 3 years of additional service after the date
32 of re-entry.
33 (f) An employee in service on July 1, 1947, or who
34 became a contributor after July 1, 1947 and before attainment
35 of age 70, who withdraws after age 65, with less than 20
-39- LRB9011159EGfgccr6
1 years of service for whom the annuity has been fixed under
2 this Article shall, instead of the annuity so fixed, receive
3 an annuity as follows:
4 Such amount as he could have received had the accumulated
5 amounts for annuity been improved with interest at the
6 effective rate to the date of his withdrawal, or to
7 attainment of age 70, whichever is earlier, and had the city
8 contributed to such earlier date for age and service annuity
9 the amount that it would have contributed had he been under
10 age 65, after the date his annuity was fixed in accordance
11 with this Article, and assuming his annuity were computed
12 from such accumulations as of his age on such earlier date.
13 The annuity so computed shall not exceed the annuity which
14 would be payable under the other provisions of this Section
15 if the employee was credited with 20 years of service and
16 would qualify for annuity thereunder.
17 (g) Instead of the annuity provided in this Article, an
18 employee having attained age 65 with at least 15 years of
19 service who withdraws from service on or after July 1, 1971
20 and whose annuity computed under other provisions of this
21 Article is less than the amount provided under this
22 paragraph, is entitled to a minimum annuity for life equal to
23 1% of the highest average annual salary, as salary is defined
24 and limited in this Section for any 4 consecutive years
25 within the last 10 years of service for each year of service,
26 plus the sum of $25 for each year of service. The annuity
27 shall not exceed 60% of such highest average annual salary.
28 (g-1) Instead of any other retirement annuity provided
29 in this Article, an employee who has at least 10 years of
30 service and withdraws from service on or after January 1,
31 1999 may elect to receive a retirement annuity for life,
32 beginning no earlier than upon attainment of age 60, equal to
33 2.2% of final average salary for each year of service,
34 subject to a maximum of 75% of final average salary. For the
35 purpose of calculating this annuity, "final average salary"
-40- LRB9011159EGfgccr6
1 means the highest average annual salary for any 4 consecutive
2 years in the last 10 years of service.
3 (h) The minimum annuities provided under this Section
4 shall be paid in equal monthly installments.
5 (i) The amendatory provisions of part (b) and (g) of
6 this Section shall be effective July 1, 1971 and apply in the
7 case of every qualifying employee withdrawing on or after
8 July 1, 1971.
9 (j) The amendatory provisions of this amendatory Act of
10 1985 (P.A. 84-23) relating to the discount of annuity because
11 of retirement prior to attainment of age 60, and to the
12 retirement formula, for those born before January 1, 1936,
13 shall apply only to qualifying employees withdrawing on or
14 after July 18, 1985.
15 (k) Beginning on January 1, 1999 the effective date of
16 this amendatory Act of 1997, the minimum amount of employee's
17 annuity shall be $850 $550 per month for life for the
18 following classes of employees, without regard to the fact
19 that withdrawal occurred prior to the effective date of this
20 amendatory Act of 1998 1997:
21 (1) any employee annuitant alive and receiving a
22 life annuity on the effective date of this amendatory Act
23 of 1998 1997, except a reciprocal annuity;
24 (2) any employee annuitant alive and receiving a
25 term annuity on the effective date of this amendatory Act
26 of 1998 1997, except a reciprocal annuity;
27 (3) any employee annuitant alive and receiving a
28 reciprocal annuity on the effective date of this
29 amendatory Act of 1998 1997, whose service in this fund
30 is at least 5 years;
31 (4) any employee annuitant withdrawing after age 60
32 on or after the effective date of this amendatory Act of
33 1998 1997, with at least 10 years of service in this
34 fund.
35 The increases granted under items (1), (2) and (3) of
-41- LRB9011159EGfgccr6
1 this subsection (k) shall not be limited by any other Section
2 of this Act.
3 (Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
4 (40 ILCS 5/8-139) (from Ch. 108 1/2, par. 8-139)
5 Sec. 8-139. Reversionary annuity.
6 (a) An employee, prior to retirement on annuity, may
7 elect to take a lesser amount of annuity and provide, with
8 the actuarial value of the amount by which his annuity is
9 reduced, a reversionary annuity for a wife, husband, parent,
10 child, brother or sister. The option shall be exercised by
11 filing a written designation with the board prior to
12 retirement, and may be revoked by the employee at any time
13 before retirement. The death of the employee prior to his
14 retirement shall automatically void the option.
15 (b) The death of the designated reversionary annuitant
16 prior to the employee's retirement shall automatically void
17 the option. If the reversionary annuitant dies after the
18 employee's retirement, and before the death of the employee
19 annuitant, the reduced annuity being paid to the retired
20 employee annuitant shall be increased to the amount of
21 annuity before reduction for the reversionary annuity and no
22 reversionary annuity shall be payable.
23 The option is subject to the further condition that no
24 reversionary annuity shall be paid to a parent, child,
25 brother, or sister if the employee dies before the expiration
26 of 365 730 days from the date his written designation was
27 filed with the board, even though he has retired and is
28 receiving a reduced annuity.
29 (c) The employee exercising this option shall not reduce
30 his retirement annuity by more than $400 $200 a month, or
31 elect to provide a reversionary annuity of less than $50 per
32 month. No option shall be permitted if the reversionary
33 annuity for a widow, when added to the widow's annuity
34 payable under this Article, exceeds 100% 80% of the reduced
-42- LRB9011159EGfgccr6
1 annuity payable to the employee.
2 (d) A reversionary annuity shall begin on the day
3 following the death of the annuitant and shall be paid as
4 provided in Section 8-125.
5 (e) The increases in annuity provided in Section 8-137
6 of this Article shall, as to an employee so electing a
7 reduced annuity relate to the amount of the original annuity,
8 and such amount shall constitute the annuity on which such
9 automatic increases shall be based.
10 (f) For annuities elected after June 30, 1983, the
11 amount of the monthly reversionary annuity shall be
12 determined by multiplying the amount of the monthly reduction
13 in the employee's annuity by the factor in the following
14 table based on the age of the employee and the difference in
15 the age of the employee and the age of the reversionary
16 annuitant at the starting date of the employee's annuity:
17 Employee's Age
18 Reversionary
19 Annuitant's Age 55-57 58-60 61-63 64-66 67-69 70 &
20 Over
21 30 or more years 2.18 1.84 1.55 1.29 1.08 0.91
22 younger
23 25-29 years younger 2.29 1.94 1.63 1.37 1.15 0.97
24 20-24 years younger 2.44 2.07 1.75 1.48 1.25 1.06
25 15-19 years younger 2.65 2.26 1.92 1.63 1.39 1.19
26 10-14 years younger 2.94 2.53 2.16 1.85 1.59 1.37
27 5-9 years younger 3.35 2.90 2.51 2.16 1.88 1.64
28 0-4 years younger 3.93 3.44 3.00 2.61 2.29 2.02
29 1-5 years older 4.76 4.21 3.71 3.26 2.88 2.56
30 6-10 years older 5.93 5.30 4.71 4.16 3.70 3.29
31 11-15 years older 7.58 6.83 6.11 5.40 4.82 4.32
32 16-20 years older 9.84 8.93 8.02 7.13 6.43 5.87
33 21-25 years older 12.91 11.82 10.73 9.66 8.88 8.35
34 26-30 years older 17.15 15.96 14.80 13.65 12.97 12.82
35 31 or more years 23.34 22.32 21.45 20.62 20.85 23.28
-43- LRB9011159EGfgccr6
1 older
2 (Source: P.A. 90-31, eff. 6-27-97.)
3 (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
4 Sec. 8-150.1. Minimum annuities for widows. The widow
5 (otherwise eligible for widow's annuity under other Sections
6 of this Article 8) of an employee hereinafter described, who
7 retires from service or dies while in the service subsequent
8 to the effective date of this amendatory provision, and for
9 which widow the amount of widow's annuity and widow's prior
10 service annuity combined, fixed or provided for such widow
11 under other provisions of this Article is less than the
12 amount provided in this Section, shall, from and after the
13 date her otherwise provided annuity would begin, in lieu of
14 such otherwise provided widow's and widow's prior service
15 annuity, be entitled to the following indicated amount of
16 annuity:
17 (a) The widow of any employee who dies while in service
18 on or after the date on which he attains age 60 if the death
19 occurs before July 1, 1990, or on or after the date on which
20 he attains age 55 if the death occurs on or after July 1,
21 1990, with at least 20 years of service, or on or after the
22 date on which he attains age 50 if the death occurs on or
23 after the effective date of this amendatory Act of 1997 with
24 at least 30 years of service, shall be entitled to an annuity
25 equal to one-half of the amount of annuity which her deceased
26 husband would have been entitled to receive had he withdrawn
27 from the service on the day immediately preceding the date of
28 his death, conditional upon such widow having attained the
29 age of 60 or more years on such date if the death occurs
30 before July 1, 1990, or age 55 or more if the death occurs on
31 or after July 1, 1990, or age 50 or more if the death occurs
32 on or after January 1, 1998 and the employee is age 50 or
33 over with at least 30 years of service or age 55 or over with
34 at least 25 years of service. Except as provided in
-44- LRB9011159EGfgccr6
1 subsection (k), this widow's annuity shall not, however,
2 exceed the sum of $500 a month if the employee's death in
3 service occurs before January 23, 1987. The widow's annuity
4 shall not be limited to a maximum dollar amount if the
5 employee's death in service occurs on or after January 23,
6 1987.
7 If the employee dies in service before July 1, 1990, and
8 if such widow of such described employee shall not be 60 or
9 more years of age on such date of death, the amount provided
10 in the immediately preceding paragraph for a widow 60 or more
11 years of age, shall, in the case of such younger widow, be
12 reduced by 0.25% for each month that her then attained age is
13 less than 60 years if the employee was born before January 1,
14 1936 or dies in service on or after January 1, 1988, or by
15 0.5% for each month that her then attained age is less than
16 60 years if the employee was born on or after July 1, 1936
17 and dies in service before January 1, 1988.
18 If the employee dies in service on or after July 1, 1990,
19 and if the widow of the employee has not attained age 55 on
20 or before the employee's date of death, the amount otherwise
21 provided in this subsection (a) shall be reduced by 0.25% for
22 each month that her then attained age is less than 55 years;
23 except that if the employee dies in service on or after
24 January 1, 1998 at age 50 or over with at least 30 years of
25 service or at age 55 or over with at least 25 years of
26 service, there shall be no reduction due to the widow's age
27 if she has attained age 50 on or before the employee's date
28 of death, and if the widow has not attained age 50 on or
29 before the employee's date of death the amount otherwise
30 provided in this subsection (a) shall be reduced by 0.25% for
31 each month that her then attained age is less than 50 years.
32 (b) The widow of any employee who dies subsequent to the
33 date of his retirement on annuity, and who so retired on or
34 after the date on which he attained the age of 60 or more
35 years if retirement occurs before July 1, 1990, or on or
-45- LRB9011159EGfgccr6
1 after the date on which he attained age 55 if retirement
2 occurs on or after July 1, 1990, with at least 20 years of
3 service, or on or after the date on which he attained age 50
4 if the retirement occurs on or after the effective date of
5 this amendatory Act of 1997 with at least 30 years of
6 service, shall be entitled to an annuity equal to one-half of
7 the amount of annuity which her deceased husband received as
8 of the date of his retirement on annuity, conditional upon
9 such widow having attained the age of 60 or more years on the
10 date of her husband's retirement on annuity if retirement
11 occurs before July 1, 1990, or age 55 or more if retirement
12 occurs on or after July 1, 1990, or age 50 or more if the
13 retirement on annuity occurs on or after January 1, 1998 and
14 the employee is age 50 or over with at least 30 years of
15 service or age 55 or over with at least 25 years of service.
16 Except as provided in subsection (k), this widow's annuity
17 shall not, however, exceed the sum of $500 a month if the
18 employee's death occurs before January 23, 1987. The widow's
19 annuity shall not be limited to a maximum dollar amount if
20 the employee's death occurs on or after January 23, 1987,
21 regardless of the date of retirement; provided that, if
22 retirement was before January 23, 1987, the employee or
23 eligible spouse repays the excess spouse refund with interest
24 at the effective rate from the date of refund to the date of
25 repayment.
26 If the date of the employee's retirement on annuity is
27 before July 1, 1990, and if such widow of such described
28 employee shall not have attained such age of 60 or more years
29 on such date of her husband's retirement on annuity, the
30 amount provided in the immediately preceding paragraph for a
31 widow 60 or more years of age on the date of her husband's
32 retirement on annuity, shall, in the case of such then
33 younger widow, be reduced by 0.25% for each month that her
34 then attained age was less than 60 years if the employee was
35 born before January 1, 1936 or withdraws from service on or
-46- LRB9011159EGfgccr6
1 after January 1, 1988, or by 0.5% for each month that her
2 then attained age is less than 60 years if the employee was
3 born on or after January 1, 1936 and withdraws from service
4 before January 1, 1988.
5 If the date of the employee's retirement on annuity is on
6 or after July 1, 1990, and if the widow of the employee has
7 not attained age 55 by the date of the employee's retirement
8 on annuity, the amount otherwise provided in this subsection
9 (b) shall be reduced by 0.25% for each month that her then
10 attained age is less than 55 years; except that if the
11 employee retires on annuity on or after January 1, 1998 at
12 age 50 or over with at least 30 years of service or at age 55
13 or over with at least 25 years of service, there shall be no
14 reduction due to the widow's age if she has attained age 50
15 on or before the employee's date of death, and if the widow
16 has not attained age 50 on or before the employee's date of
17 death the amount otherwise provided in this subsection (b)
18 shall be reduced by 0.25% for each month that her then
19 attained age is less than 50 years.
20 (c) The foregoing provisions relating to minimum
21 annuities for widows shall not apply to the widow of any
22 former municipal employee receiving an annuity from the fund
23 on August 9, 1965 or on the effective date of this amendatory
24 provision, who re-enters service as a municipal employee,
25 unless such employee renders at least 3 years of additional
26 service after the date of re-entry.
27 (d) In computing the amount of annuity which the husband
28 specified in the foregoing paragraphs (a) and (b) of this
29 Section would have been entitled to receive, or received,
30 such amount shall be the annuity to which such husband would
31 have been, or was entitled, before reduction in the amount of
32 his annuity for the purposes of the voluntary optional
33 reversionary annuity provided for in Sec. 8-139 of this
34 Article, if such option was elected.
35 (e) (Blank).
-47- LRB9011159EGfgccr6
1 (f) (Blank).
2 (g) The amendatory provisions of this amendatory Act of
3 1985 relating to annuity discount because of age for widows
4 of employees born before January 1, 1936, shall apply only to
5 qualifying widows of employees withdrawing or dying in
6 service on or after July 18, 1985.
7 (h) Beginning on January 1, 1999 the effective date of
8 this amendatory Act of 1997, the minimum amount of widow's
9 annuity shall be $800 $500 per month for life for the
10 following classes of widows, without regard to the fact that
11 the death of the employee occurred prior to the effective
12 date of this amendatory Act of 1998 1997:
13 (1) any widow annuitant alive and receiving a life
14 annuity on the effective date of this amendatory Act of
15 1998 1997, except a reciprocal annuity;
16 (2) any widow annuitant alive and receiving a term
17 annuity on the effective date of this amendatory Act of
18 1998 1997, except a reciprocal annuity;
19 (3) any widow annuitant alive and receiving a
20 reciprocal annuity on the effective date of this
21 amendatory Act of 1998 1997, whose employee spouse's
22 service in this fund was at least 5 years;
23 (4) the widow of an employee with at least 10 years
24 of service in this fund who dies after retirement, if the
25 retirement occurred prior to the effective date of this
26 amendatory Act of 1998 1997;
27 (5) the widow of an employee with at least 10 years
28 of service in this fund who dies after retirement, if
29 withdrawal occurs on or after the effective date of this
30 amendatory Act of 1998 1997;
31 (6) the widow of an employee who dies in service
32 with at least 5 years of service in this fund, if the
33 death in service occurs on or after the effective date of
34 this amendatory Act of 1998 1997.
35 The increases granted under items (1), (2), (3) and (4)
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1 of this subsection (h) shall not be limited by any other
2 Section of this Act.
3 (i) The widow of an employee who retired or died in
4 service on or after January 1, 1985 and before July 1, 1990,
5 at age 55 or older, and with at least 35 years of service
6 credit, shall be entitled to have her widow's annuity
7 increased, effective January 1, 1991, to an amount equal to
8 50% of the retirement annuity that the deceased employee
9 received on the date of retirement, or would have been
10 eligible to receive if he had retired on the day preceding
11 the date of his death in service, provided that if the widow
12 had not attained age 60 by the date of the employee's
13 retirement or death in service, the amount of the annuity
14 shall be reduced by 0.25% for each month that her then
15 attained age was less than age 60 if the employee's
16 retirement or death in service occurred on or after January
17 1, 1988, or by 0.5% for each month that her attained age is
18 less than age 60 if the employee's retirement or death in
19 service occurred prior to January 1, 1988. However, in cases
20 where a refund of excess contributions for widow's annuity
21 has been paid by the Fund, the increase in benefit provided
22 by this subsection (i) shall be contingent upon repayment of
23 the refund to the Fund with interest at the effective rate
24 from the date of refund to the date of payment.
25 (j) If a deceased employee is receiving a retirement
26 annuity at the time of death and that death occurs on or
27 after June 27, the effective date of this amendatory Act of
28 1997, the widow may elect to receive, in lieu of any other
29 annuity provided under this Article, 50% of the deceased
30 employee's retirement annuity at the time of death reduced by
31 0.25% for each month that the widow's age on the date of
32 death is less than 55; except that if the employee dies on or
33 after January 1, 1998 and withdrew from service on or after
34 June 27, 1997 at age 50 or over with at least 30 years of
35 service or at age 55 or over with at least 25 years of
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1 service, there shall be no reduction due to the widow's age
2 if she has attained age 50 on or before the employee's date
3 of death, and if the widow has not attained age 50 on or
4 before the employee's date of death the amount otherwise
5 provided in this subsection (j) shall be reduced by 0.25% for
6 each month that her age on the date of death is less than 50
7 years. However, in cases where a refund of excess
8 contributions for widow's annuity has been paid by the Fund,
9 the benefit provided by this subsection (j) is contingent
10 upon repayment of the refund to the Fund with interest at the
11 effective rate from the date of refund to the date of
12 payment.
13 (k) For widows of employees who died before January 23,
14 1987 after retirement on annuity or in service, the maximum
15 dollar amount limitation on widow's annuity shall cease to
16 apply, beginning with the first annuity payment after the
17 effective date of this amendatory Act of 1997; except that if
18 a refund of excess contributions for widow's annuity has been
19 paid by the Fund, the increase resulting from this subsection
20 (k) shall not begin before the refund has been repaid to the
21 Fund, together with interest at the effective rate from the
22 date of the refund to the date of repayment.
23 (Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
24 (40 ILCS 5/8-158) (from Ch. 108 1/2, par. 8-158)
25 Sec. 8-158. Child's annuity. A child's annuity is
26 payable monthly after the death of an employee parent to the
27 child until the child's attainment of age 18, under the
28 following conditions, if the child was born before the
29 employee attained age 65, and before he withdrew from
30 service:
31 (a) upon death resulting from injury incurred in
32 the performance of an act of duty;
33 (b) upon death in service from any cause other than
34 injury incurred in the performance of an act of duty, if
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1 the employee has at least 4 years of service after the
2 date of his original entry into service, and at least 2
3 years after the date of his latest re-entry;
4 (c) upon death of an employee who withdraws from
5 service after age 55 (or after age 50 with at least 30
6 years of service if withdrawal is on or after June 27,
7 1997) and who has entered upon or is eligible for
8 annuity.
9 Payment shall be made as provided in Section 8-125.
10 (Source: P.A. 90-31, eff. 6-27-97.)
11 (40 ILCS 5/8-173) (from Ch. 108 1/2, par. 8-173)
12 Sec. 8-173. Financing; tax levy.
13 (a) Except as provided in subsection (f) of this
14 Section, the city council of the city shall levy a tax
15 annually upon all taxable property in the city at a rate that
16 will produce a sum which, when added to the amounts deducted
17 from the salaries of the employees or otherwise contributed
18 by them and the amounts deposited under subsection (f), will
19 be sufficient for the requirements of this Article, but which
20 when extended will produce an amount not to exceed the
21 greater of the following: (a) the sum obtained by the levy of
22 a tax of .1093% of the value, as equalized or assessed by the
23 Department of Revenue, of all taxable property within such
24 city, or (b) the sum of $12,000,000. However any city in
25 which a Fund has been established and in operation under this
26 Article for more than 3 years prior to 1970, that city shall
27 levy for the year 1970 a tax at a rate on the dollar of
28 assessed valuation of all taxable property that will produce,
29 when extended, an amount not to exceed 1.2 times the total
30 amount of contributions made by employees to the Fund for
31 annuity purposes in the calendar year 1968, and, for the year
32 1971 and 1972 such levy that will produce, when extended, an
33 amount not to exceed 1.3 times the total amount of
34 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
35 extended for such city.
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1 Revenues derived from such tax shall be paid to the city
2 treasurer of the city as collected and held by him for the
3 benefit of the fund.
4 If the payments on account of taxes are insufficient
5 during any year to meet the requirements of this Article, the
6 city may issue tax anticipation warrants against the current
7 tax levy.
8 (b) On or before January 10, annually, the board shall
9 notify the city council of the requirements of this Article
10 that the tax herein provided shall be levied for that current
11 year. The board shall compute the amounts necessary to be
12 credited to the reserves established and maintained as herein
13 provided, and shall make an annual determination of the
14 amount of the required city contributions, and certify the
15 results thereof to the city council.
16 (c) In respect to employees of the city who are
17 transferred to the employment of a park district by virtue of
18 the "Exchange of Functions Act of 1957", the corporate
19 authorities of the park district shall annually levy a tax
20 upon all the taxable property in the park district at such
21 rate per cent of the value of such property, as equalized or
22 assessed by the Department of Revenue, as shall be
23 sufficient, when added to the amounts deducted from their
24 salaries and otherwise contributed by them to provide the
25 benefits to which they and their dependents and beneficiaries
26 are entitled under this Article. The city shall not levy a
27 tax hereunder in respect to such employees.
28 The tax so levied by the park district shall be in
29 addition to and exclusive of all other taxes authorized to be
30 levied by the park district for corporate, annuity fund, or
31 other purposes. The county clerk of the county in which the
32 park district is located, in reducing any tax levied under
33 the provisions of any act concerning the levy and extension
34 of taxes shall not consider such tax as part of the general
35 tax levy for park purposes, and shall not include the same in
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1 any limitation of the per cent of the assessed valuation upon
2 which taxes are required to be extended for the park
3 district. The proceeds of the tax levied by the park
4 district, upon receipt by the district, shall be immediately
5 paid over to the city treasurer of the city for the uses and
6 purposes of the fund.
7 The various sums, to be contributed by the city and park
8 district and allocated for the purposes of this Article, and
9 any interest to be contributed by the city, shall be derived
10 from the revenue from the taxes authorized in this Section
11 said tax or otherwise as expressly provided in this Section.
12 If it is not possible or practicable for the city to make
13 contributions for age and service annuity and widow's annuity
14 at the same time that employee contributions are made for
15 such purposes, such city contributions shall be construed to
16 be due and payable as of the end of the fiscal year for which
17 the tax is levied and shall accrue thereafter with interest
18 at the effective rate until paid.
19 (d) With respect to employees whose wages are funded as
20 participants under the Comprehensive Employment and Training
21 Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
22 93-567, 88 Stat. 1845), hereinafter referred to as CETA,
23 subsequent to October 1, 1978, and in instances where the
24 board has elected to establish a manpower program reserve,
25 the board shall compute the amounts necessary to be credited
26 to the manpower program reserves established and maintained
27 as herein provided, and shall make a periodic determination
28 of the amount of required contributions from the City to the
29 reserve to be reimbursed by the federal government in
30 accordance with rules and regulations established by the
31 Secretary of the United States Department of Labor or his
32 designee, and certify the results thereof to the City
33 Council. Any such amounts shall become a credit to the City
34 and will be used to reduce the amount which the City would
35 otherwise contribute during succeeding years for all
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1 employees.
2 (e) In lieu of establishing a manpower program reserve
3 with respect to employees whose wages are funded as
4 participants under the Comprehensive Employment and Training
5 Act of 1973, as authorized by subsection (d), the board may
6 elect to establish a special municipality contribution rate
7 for all such employees. If this option is elected, the City
8 shall contribute to the Fund from federal funds provided
9 under the Comprehensive Employment and Training Act program
10 at the special rate so established and such contributions
11 shall become a credit to the City and be used to reduce the
12 amount which the City would otherwise contribute during
13 succeeding years for all employees.
14 (f) In lieu of levying all or a portion of the tax
15 required under this Section in any year, the city may deposit
16 with the city treasurer no later than March 1 of that year
17 for the benefit of the fund, to be held in accordance with
18 this Article, an amount that, together with the taxes levied
19 under this Section for that year, is not less than the amount
20 of the city contributions for that year as certified by the
21 board to the city council. The deposit may be derived from
22 any source legally available for that purpose, including, but
23 not limited to, the proceeds of city borrowings. The making
24 of a deposit shall satisfy fully the requirements of this
25 Section for that year to the extent of the amounts so
26 deposited. Amounts deposited under this subsection may be
27 used by the fund for any of the purposes for which the
28 proceeds of the tax levied by the city under this Section may
29 be used, including the payment of any amount that is
30 otherwise required by this Article to be paid from the
31 proceeds of that tax.
32 (Source: P.A. 90-31, eff. 6-27-97; revised 12-18-97.)
33 (40 ILCS 5/8-230.7 new)
34 Sec. 8-230.7. Service rendered to Public Building
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1 Commission.
2 (a) An employee or former employee may contribute to the
3 fund and receive credit for all periods of full-time
4 employment by the Public Building Commission created by the
5 employing city, except for those periods for which the
6 employee retains a right to credit in another public pension
7 fund or retirement system. Such service credit shall be paid
8 for and granted on the same basis and under the same
9 conditions as are applicable in the case of employees who
10 make payment for past service under Section 8-230, provided
11 that the person must also pay the corresponding employer
12 contributions. The contributions shall be based on the
13 salary actually received by the person from the Commission
14 for that employment.
15 (b) A person establishing service credit under
16 subsection (a) may, at the same time, reinstate service
17 credit that was terminated through receipt of a refund by
18 repaying to the Fund the amount of the refund plus interest
19 at the effective rate from the date of the refund to the date
20 of repayment.
21 (c) An eligible person may establish service credit
22 under subsection (a) and reinstate service credit under
23 subsection (b) without returning to active service as an
24 employee under this Article, but the required contributions
25 and repayment must be received by the Fund before the person
26 begins to receive a retirement annuity under this Article.
27 (40 ILCS 5/8-244.1) (from Ch. 108 1/2, par. 8-244.1)
28 Sec. 8-244.1. Payment of annuity other than direct.
29 (a) The board, at the written direction and request of
30 any annuitant, may, solely as an accommodation to such
31 annuitant, pay the annuity due him to a bank, savings and
32 loan association or any other financial institution insured
33 by an agency of the federal government, for deposit to his
34 account, or to a bank or trust company for deposit in a trust
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1 established by him for his benefit with such bank, savings
2 and loan association or trust company, and such annuitant may
3 withdraw such direction at any time. The board may also, in
4 the case of any disability beneficiary or annuitant for whom
5 no estate guardian has been appointed and who is confined in
6 a publicly owned and operated mental institution, pay such
7 disability benefit or annuity due such person to the
8 superintendent or other head of such institution or hospital
9 for deposit to such person's trust fund account maintained
10 for him by such institution or hospital, if by law such trust
11 fund accounts are authorized or recognized.
12 (b) An annuitant formerly employed by the City of
13 Chicago may authorize the withholding of a portion of his or
14 her annuity for payment of dues to the labor organization
15 which formerly represented the annuitant when the annuitant
16 was an active employee; however, no withholding shall