State of Illinois
90th General Assembly
Legislation

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[ Senate Amendment 001 ]

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:
                            -2-            LRB9011159EGfgccr6
 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
                            -3-            LRB9011159EGfgccr6
 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
                            -4-            LRB9011159EGfgccr6
 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
                            -5-            LRB9011159EGfgccr6
 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
                            -6-            LRB9011159EGfgccr6
 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
                            -7-            LRB9011159EGfgccr6
 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
                            -8-            LRB9011159EGfgccr6
 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
                            -9-            LRB9011159EGfgccr6
 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
                            -10-           LRB9011159EGfgccr6
 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
                            -11-           LRB9011159EGfgccr6
 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
                            -12-           LRB9011159EGfgccr6
 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
                            -13-           LRB9011159EGfgccr6
 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
                            -14-           LRB9011159EGfgccr6
 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
                            -15-           LRB9011159EGfgccr6
 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
                            -16-           LRB9011159EGfgccr6
 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
                            -18-           LRB9011159EGfgccr6
 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
                            -19-           LRB9011159EGfgccr6
 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
                            -20-           LRB9011159EGfgccr6
 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
                            -21-           LRB9011159EGfgccr6
 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.)
                            -22-           LRB9011159EGfgccr6
 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
                            -23-           LRB9011159EGfgccr6
 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.
                            -24-           LRB9011159EGfgccr6
 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:
                            -25-           LRB9011159EGfgccr6
 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.
                            -26-           LRB9011159EGfgccr6
 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
                            -27-           LRB9011159EGfgccr6
 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.
                            -28-           LRB9011159EGfgccr6
 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
                            -29-           LRB9011159EGfgccr6
 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)
                            -48-           LRB9011159EGfgccr6
 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
                            -49-           LRB9011159EGfgccr6
 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
                            -50-           LRB9011159EGfgccr6
 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
                            -51-           LRB9011159EGfgccr6
 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.
                            -52-           LRB9011159EGfgccr6
 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
                            -53-           LRB9011159EGfgccr6
 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
                            -54-           LRB9011159EGfgccr6
 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
                            -55-           LRB9011159EGfgccr6
 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
                            -56-           LRB9011159EGfgccr6
 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