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90_SB0115
40 ILCS 5/2-123 from Ch. 108 1/2, par. 2-123
40 ILCS 5/14-103.05 from Ch. 108 1/2, par. 14-103.05
40 ILCS 5/14-108 from Ch. 108 1/2, par. 14-108
40 ILCS 5/14-130 from Ch. 108 1/2, par. 14-130
40 ILCS 5/14-133 from Ch. 108 1/2, par. 14-133
40 ILCS 5/21-103 from Ch. 108 1/2, par. 21-103
40 ILCS 5/21-109 from Ch. 108 1/2, par. 21-109
40 ILCS 5/21-115 from Ch. 108 1/2, par. 21-115
Amends the General Assembly Article of the Illinois
Pension Code to allow a refund of excess contributions to be
paid to a beneficiary designated by the member's surviving
spouse. Amends the State Employee Article of the Illinois
Pension Code. Authorizes the Board to adopt rules governing
the repayment of refunds and establishment of credits in
cases involving awards of back pay or reinstatement.
Provides that the rules may authorize repayment of a refund
in installment payments and may waive the payment of interest
on refund amounts repaid in full within a specified period.
Specifies that members of certain professional licensing and
disciplinary boards who are compensated on a per-diem basis
do not participate in the System. Removes the requirement
that certain security employees of the Department of
Corrections or Human Services must be employed full-time in
order to qualify for their special retirement formula.
Amends the Social Security Enabling Act Article of the
Illinois Pension Code. Abolishes the Social Security
Contribution Fund at the close of business on June 30, 1997.
Deletes obsolete references to the Fund. Transfers any
remaining balance into the Social Security Administration
Fund. Effective immediately.
LRB9000984EGfgB
LRB9000984EGfgB
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 2-123, 14-103.05, 14-108, 14-130, 14-133, 21-103,
3 21-109, and 21-115.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Pension Code is amended by
7 changing Sections 2-123, 14-103.05, 14-108, 14-130, 14-133,
8 21-103, 21-109, and 21-115 as follows:
9 (40 ILCS 5/2-123) (from Ch. 108 1/2, par. 2-123)
10 Sec. 2-123. Refunds.
11 (a) A participant who ceases to be a member, other than
12 an annuitant, shall, upon written request, receive a refund
13 of his or her total contributions, without interest. The
14 refund shall include the additional contributions for the
15 automatic increase in retirement annuity. By accepting the
16 refund, a participant forfeits all accrued rights and
17 benefits in the System and loses credit for all service.
18 However, if he or she again becomes a member, he or she may
19 resume status as a participant and reestablish any forfeited
20 service credit by paying to the System the full amount
21 refunded, together with interest at 4% per annum from the
22 time the refund is paid to the date the member again becomes
23 a participant.
24 A former member of the General Assembly may reestablish
25 any service credit forfeited by acceptance of a refund by
26 paying to the System on or before February 1, 1993, the full
27 amount refunded, together with interest at 4% per annum from
28 the date of payment of the refund to the date of repayment.
29 When a member or former member owes money to the System,
30 interest at the rate of 4% per annum shall accrue and be
31 payable on such amounts owed beginning on the date of
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1 termination of service as a member until the contributions
2 due have been paid in full.
3 (b) A participant who has no eligible survivor upon
4 becoming an annuitant or who terminates service with less
5 than 8 years of service is entitled to a refund of the
6 contributions for a survivor's annuity, without interest. If
7 such person later marries, a survivor's annuity shall not be
8 payable upon his or her death, unless the amount of such
9 refund is repaid to the System, together with interest at the
10 rate of 4% per year from the date of refund to the date of
11 repayment.
12 (c) If at the date of retirement or death of a
13 participant who served as an officer of the General Assembly,
14 the total period of such service is less than 4 years, the
15 additional contributions made by such member on the
16 additional salary as an officer shall be refunded unless the
17 participant served as an officer for at least 2 years and has
18 contributed the amount he or she would have contributed if he
19 or she had served as an officer for 4 years as provided in
20 Section 2-126.
21 (d) Upon the termination of the last survivor's annuity
22 payable to a survivor of a deceased participant, the excess,
23 if any, of the total contributions made by the participant
24 for retirement and survivor's annuity, without interest, over
25 the total amount of retirement and survivor's annuity
26 payments received by the participant and the participant's
27 survivors shall be refunded upon request:
28 (i) if there was a surviving spouse of the deceased
29 participant who was eligible for a survivor's annuity, to
30 the designated beneficiary of that spouse or, if the
31 designated beneficiary is deceased or there is no
32 designated beneficiary, to that spouse's estate;
33 (ii) if there was no eligible surviving spouse of
34 the deceased participant, to the designated beneficiary
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1 of the deceased participant or, if the designated
2 beneficiary is deceased or there is no designated
3 beneficiary, to the deceased participant's estate.
4 Upon death of the last survivor of a participant and his
5 or her spouse, a death benefit shall be payable consisting of
6 the excess, if any, of the contributions made by the
7 participant for retirement and survivor's annuity, without
8 interest, over the total amount of retirement and survivor's
9 annuity payments made by the System.
10 (e) Upon the death of a participant, if a survivor's
11 annuity is not payable under this Article, a beneficiary
12 designated by the participant shall be entitled to a refund
13 of all contributions made by the participant. If the
14 participant has not designated a refund beneficiary, the
15 surviving spouse shall be entitled to the refund of
16 contributions; if there is no surviving spouse, the
17 contributions shall be refunded to the participant's
18 surviving children, if any, and if no children survive, the
19 refund payment shall be made to the participant's estate.
20 (Source: P.A. 86-273; 87-1265.)
21 (40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
22 Sec. 14-103.05. Employee. Any person employed by a
23 Department who receives salary for personal services rendered
24 to the Department on a warrant issued pursuant to a payroll
25 voucher certified by a Department and drawn by the State
26 Comptroller upon the State Treasurer, including an elected
27 official described in subparagraph (d) of Section 14-104,
28 shall become an employee for purpose of membership in the
29 Retirement System on the first day of such employment.
30 A person entering service on or after January 1, 1972 and
31 prior to January 1, 1984 shall become a member as a condition
32 of employment and shall begin making contributions as of the
33 first day of employment.
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1 A person entering service on or after January 1, 1984
2 shall, upon completion of 6 months of continuous service
3 which is not interrupted by a break of more than 2 months,
4 become a member as a condition of employment. Contributions
5 shall begin the first of the month after completion of the
6 qualifying period.
7 The qualifying period of 6 months of service is not
8 applicable to: (1) a person who has been granted credit for
9 service in a position covered by the State Universities
10 Retirement System, the Teachers' Retirement System of the
11 State of Illinois, the General Assembly Retirement System, or
12 the Judges Retirement System of Illinois unless that service
13 has been forfeited under the laws of those systems; (2) a
14 person entering service on or after July 1, 1991 in a
15 noncovered position; or (3) a person to whom Section
16 14-108.2a or 14-108.2b applies.
17 The term "employee" does not include the following:
18 (1) members of the State Legislature, and persons
19 electing to become members of the General Assembly
20 Retirement System pursuant to Section 2-105;
21 (2) incumbents of offices normally filled by vote
22 of the people;
23 (3) except as otherwise provided in this Section,
24 any person appointed by the Governor with the advice and
25 consent of the Senate unless that person elects to
26 participate in this system;
27 (4) except as provided in Section 14-108.2, any
28 person who is covered or eligible to be covered by the
29 Teachers' Retirement System of the State of Illinois, the
30 State Universities Retirement System, or the Judges
31 Retirement System of Illinois;
32 (5) an employee of a municipality or any other
33 political subdivision of the State;
34 (6) any person who becomes an employee after June
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1 30, 1979 as a public service employment program
2 participant under the Federal Comprehensive Employment
3 and Training Act and whose wages or fringe benefits are
4 paid in whole or in part by funds provided under such
5 Act;
6 (7) enrollees of the Illinois Young Adult
7 Conservation Corps program, administered by the
8 Department of Natural Resources, authorized grantee
9 pursuant to Title VIII of the "Comprehensive Employment
10 and Training Act of 1973", 29 USC 993, as now or
11 hereafter amended;
12 (8) enrollees and temporary staff of programs
13 administered by the Department of Natural Resources under
14 the Youth Conservation Corps Act of 1970;
15 (9) any person who is a member of any professional
16 licensing or disciplinary board created under an Act
17 administered by the Department of Professional Regulation
18 or a successor agency or created or re-created after the
19 effective date of this amendatory Act of 1997, and who
20 receives per diem compensation rather than a salary,
21 notwithstanding that such per diem compensation is paid
22 by warrant issued pursuant to a payroll voucher; such
23 persons have never been included in the membership of
24 this System, and this amendatory Act of 1987 (P.A.
25 84-1472) is not intended to effect any change in the
26 status of such persons;
27 (10) any person who is a member of the Illinois
28 Health Care Cost Containment Council, and receives per
29 diem compensation rather than a salary, notwithstanding
30 that such per diem compensation is paid by warrant issued
31 pursuant to a payroll voucher; such persons have never
32 been included in the membership of this System, and this
33 amendatory Act of 1987 is not intended to effect any
34 change in the status of such persons; or
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1 (11) any person who is a member of the Oil and Gas
2 Board created by Section 1.2 of the Illinois Oil and Gas
3 Act, and receives per diem compensation rather than a
4 salary, notwithstanding that such per diem compensation
5 is paid by warrant issued pursuant to a payroll voucher.
6 (Source: P.A. 88-535; 89-246; eff. 8-4-95; 89-445, eff.
7 2-7-96.)
8 (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
9 (Text of Section before amendment by P.A. 89-507)
10 Sec. 14-108. Amount of retirement annuity. A member who
11 has contributed to the System for at least 12 months, shall
12 be entitled to a prior service annuity for each year of
13 certified prior service credited to him, except that a member
14 shall receive 1/3 of the prior service annuity for each year
15 of service for which contributions have been made and all of
16 such annuity shall be payable after the member has made
17 contributions for a period of 3 years. Proportionate amounts
18 shall be payable for service of less than a full year after
19 completion of at least 12 months.
20 The total period of service to be considered in
21 establishing the measure of prior service annuity shall
22 include service credited in the Teachers' Retirement System
23 of the State of Illinois and the State Universities
24 Retirement System for which contributions have been made by
25 the member to such systems; provided that at least 1 year of
26 the total period of 3 years prescribed for the allowance of a
27 full measure of prior service annuity shall consist of
28 membership service in this system for which credit has been
29 granted.
30 (a) In the case of a member who is a noncovered
31 employee, the retirement annuity for membership service and
32 prior service shall be 1.67% of final average compensation
33 for each of the first 10 years of service; 1.90% for each of
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1 the next 10 years of service; 2.10% for each year of service
2 in excess of 20 but not exceeding 30; and 2.30% for each year
3 in excess of 30. Any service credit established as a covered
4 employee shall be considered in determining the applicable
5 percentages and computed as stated in paragraph (b).
6 (b) In the case of a covered employee, the retirement
7 annuity for membership service and prior service shall be
8 computed as stated in paragraph (a) for all service credit
9 established as a noncovered employee; for service credit
10 established as a covered employee it shall be 1% for each of
11 the first 10 years of service; 1.10% for each of the next 10
12 years of service; 1.30% for each year of service in excess of
13 20 but not exceeding 30; and 1.50% for each year of service
14 in excess of 30. Any service credit established as a
15 noncovered employee shall be considered in determining the
16 applicable percentages.
17 (c) For a member with 30 but less than 35 years of
18 creditable service retiring after attaining age 55 but before
19 age 60, the retirement annuity shall be reduced by 1/2 of 1%
20 for each month that the member's age is under age 60 at the
21 time of retirement.
22 (d) A retirement annuity shall not exceed 75% of final
23 average compensation, subject to such extension as may result
24 from the application of Section 14-114 or Section 14-115.
25 (e) The retirement annuity payable to any covered
26 employee who is a member of the System and in service on
27 January 1, 1969, or in service thereafter in 1969 as a result
28 of legislation enacted by the Illinois General Assembly
29 transferring the member to State employment from county
30 employment in a county Department of Public Aid in counties
31 of 3,000,000 or more population, under a plan of coordination
32 with the Old Age, Survivors and Disability provisions
33 thereof, if not fully insured for Old Age Insurance payments
34 under the Federal Old Age, Survivors and Disability Insurance
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1 provisions at the date of acceptance of a retirement annuity,
2 shall not be less than the amount for which the member would
3 have been eligible if coordination were not applicable.
4 (f) The retirement annuity payable to any covered
5 employee who is a member of the System and in service on
6 January 1, 1969, or in service thereafter in 1969 as a result
7 of the legislation designated in the immediately preceding
8 paragraph, if fully insured for Old Age Insurance payments
9 under the Federal Social Security Act at the date of
10 acceptance of a retirement annuity, shall not be less than an
11 amount which when added to the Primary Insurance Benefit
12 payable to the member upon attainment of age 65 under such
13 Federal Act, will equal the annuity which would otherwise be
14 payable if the coordinated plan of coverage were not
15 applicable.
16 (g) In the case of a member who is a noncovered
17 employee, the retirement annuity for membership service as a
18 full-time security employee of the Department of Corrections
19 or security employee of the Department of Mental Health and
20 Developmental Disabilities shall be 1.9% of final average
21 compensation for each of the first 10 years of service; 2.1%
22 for each of the next 10 years of service; 2.25% for each year
23 of service in excess of 20 but not exceeding 30; and 2.5% for
24 each year in excess of 30.
25 (h) In the case of a covered employee, the retirement
26 annuity for membership service as a full-time security
27 employee of the Department of Corrections or security
28 employee of the Department of Mental Health and Developmental
29 Disabilities shall be 1.67% of final average compensation for
30 each of the first 10 years of service; 1.90% for each of the
31 next 10 years of service; 2.10% for each year of service in
32 excess of 20 but not exceeding 30; and 2.30% for each year in
33 excess of 30.
34 (i) For the purposes of this Section and Section 14-133
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1 of this Act, the term "security employee of the Department of
2 Corrections" and the term "security employee of the
3 Department of Mental Health and Developmental Disabilities"
4 shall have the meanings ascribed to them in subsection (c) of
5 Section 14-110.
6 (j) The retirement annuity computed pursuant to
7 paragraphs (g) or (h) shall be applicable only to those
8 security employees of the Department of Corrections and
9 security employees of the Department of Mental Health and
10 Developmental Disabilities who have at least 20 years of
11 membership service and who are not eligible for the
12 alternative retirement annuity provided under Section 14-110.
13 However, persons transferring to this System under Section
14 14-108.2 who have service credit under Article 16 of this
15 Code may count such service toward establishing their
16 eligibility under the 20-year service requirement of this
17 subsection; but such service may be used only for
18 establishing such eligibility, and not for the purpose of
19 increasing or calculating any benefit.
20 (k) In the case of a member who has at least 10 years of
21 creditable service as a court reporter, the retirement
22 annuity for service as a court reporter shall be 2.2% of
23 final average compensation for each year of such service as a
24 noncovered employee, and 1.5% of final average compensation
25 for each year of such service as a covered employee.
26 (Source: P.A. 86-272; 86-273; 86-1028.)
27 (Text of Section after amendment by P.A. 89-507)
28 Sec. 14-108. Amount of retirement annuity. A member who
29 has contributed to the System for at least 12 months, shall
30 be entitled to a prior service annuity for each year of
31 certified prior service credited to him, except that a member
32 shall receive 1/3 of the prior service annuity for each year
33 of service for which contributions have been made and all of
34 such annuity shall be payable after the member has made
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1 contributions for a period of 3 years. Proportionate amounts
2 shall be payable for service of less than a full year after
3 completion of at least 12 months.
4 The total period of service to be considered in
5 establishing the measure of prior service annuity shall
6 include service credited in the Teachers' Retirement System
7 of the State of Illinois and the State Universities
8 Retirement System for which contributions have been made by
9 the member to such systems; provided that at least 1 year of
10 the total period of 3 years prescribed for the allowance of a
11 full measure of prior service annuity shall consist of
12 membership service in this system for which credit has been
13 granted.
14 (a) In the case of a member who is a noncovered
15 employee, the retirement annuity for membership service and
16 prior service shall be 1.67% of final average compensation
17 for each of the first 10 years of service; 1.90% for each of
18 the next 10 years of service; 2.10% for each year of service
19 in excess of 20 but not exceeding 30; and 2.30% for each year
20 in excess of 30. Any service credit established as a covered
21 employee shall be considered in determining the applicable
22 percentages and computed as stated in paragraph (b).
23 (b) In the case of a covered employee, the retirement
24 annuity for membership service and prior service shall be
25 computed as stated in paragraph (a) for all service credit
26 established as a noncovered employee; for service credit
27 established as a covered employee it shall be 1% for each of
28 the first 10 years of service; 1.10% for each of the next 10
29 years of service; 1.30% for each year of service in excess of
30 20 but not exceeding 30; and 1.50% for each year of service
31 in excess of 30. Any service credit established as a
32 noncovered employee shall be considered in determining the
33 applicable percentages.
34 (c) For a member with 30 but less than 35 years of
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1 creditable service retiring after attaining age 55 but before
2 age 60, the retirement annuity shall be reduced by 1/2 of 1%
3 for each month that the member's age is under age 60 at the
4 time of retirement.
5 (d) A retirement annuity shall not exceed 75% of final
6 average compensation, subject to such extension as may result
7 from the application of Section 14-114 or Section 14-115.
8 (e) The retirement annuity payable to any covered
9 employee who is a member of the System and in service on
10 January 1, 1969, or in service thereafter in 1969 as a result
11 of legislation enacted by the Illinois General Assembly
12 transferring the member to State employment from county
13 employment in a county Department of Public Aid in counties
14 of 3,000,000 or more population, under a plan of coordination
15 with the Old Age, Survivors and Disability provisions
16 thereof, if not fully insured for Old Age Insurance payments
17 under the Federal Old Age, Survivors and Disability Insurance
18 provisions at the date of acceptance of a retirement annuity,
19 shall not be less than the amount for which the member would
20 have been eligible if coordination were not applicable.
21 (f) The retirement annuity payable to any covered
22 employee who is a member of the System and in service on
23 January 1, 1969, or in service thereafter in 1969 as a result
24 of the legislation designated in the immediately preceding
25 paragraph, if fully insured for Old Age Insurance payments
26 under the Federal Social Security Act at the date of
27 acceptance of a retirement annuity, shall not be less than an
28 amount which when added to the Primary Insurance Benefit
29 payable to the member upon attainment of age 65 under such
30 Federal Act, will equal the annuity which would otherwise be
31 payable if the coordinated plan of coverage were not
32 applicable.
33 (g) In the case of a member who is a noncovered
34 employee, the retirement annuity for membership service as a
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1 full-time security employee of the Department of Corrections
2 or security employee of the Department of Human Services
3 shall be 1.9% of final average compensation for each of the
4 first 10 years of service; 2.1% for each of the next 10 years
5 of service; 2.25% for each year of service in excess of 20
6 but not exceeding 30; and 2.5% for each year in excess of 30.
7 (h) In the case of a covered employee, the retirement
8 annuity for membership service as a full-time security
9 employee of the Department of Corrections or security
10 employee of the Department of Human Services shall be 1.67%
11 of final average compensation for each of the first 10 years
12 of service; 1.90% for each of the next 10 years of service;
13 2.10% for each year of service in excess of 20 but not
14 exceeding 30; and 2.30% for each year in excess of 30.
15 (i) For the purposes of this Section and Section 14-133
16 of this Act, the term "security employee of the Department of
17 Corrections" and the term "security employee of the
18 Department of Human Services" shall have the meanings
19 ascribed to them in subsection (c) of Section 14-110.
20 (j) The retirement annuity computed pursuant to
21 paragraphs (g) or (h) shall be applicable only to those
22 security employees of the Department of Corrections and
23 security employees of the Department of Human Services who
24 have at least 20 years of membership service and who are not
25 eligible for the alternative retirement annuity provided
26 under Section 14-110. However, persons transferring to this
27 System under Section 14-108.2 who have service credit under
28 Article 16 of this Code may count such service toward
29 establishing their eligibility under the 20-year service
30 requirement of this subsection; but such service may be used
31 only for establishing such eligibility, and not for the
32 purpose of increasing or calculating any benefit.
33 (k) In the case of a member who has at least 10 years of
34 creditable service as a court reporter, the retirement
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1 annuity for service as a court reporter shall be 2.2% of
2 final average compensation for each year of such service as a
3 noncovered employee, and 1.5% of final average compensation
4 for each year of such service as a covered employee.
5 (Source: P.A. 89-507, eff. 7-1-97.)
6 (40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
7 Sec. 14-130. Refunds; rules.
8 (a) Upon withdrawal a member is entitled to receive,
9 upon written request, a refund of the member's contributions,
10 including credits granted while in receipt of disability
11 benefits, without credited interest. The board, in its
12 discretion may withhold payment of the refund of a member's
13 contributions for a period not to exceed 1 year after the
14 member has ceased to be an employee.
15 For purposes of this Section, a member will be considered
16 to have withdrawn from service if a change in, or transfer
17 of, his position results in his becoming ineligible for
18 continued membership in this System and eligible for
19 membership in another public retirement system under this
20 Act.
21 (b) A member receiving a refund forfeits and
22 relinquishes all accrued rights in the System, including all
23 accumulated creditable service. If the person again becomes
24 a member of the System and establishes at least 2 years of
25 creditable service, the member may repay the moneys
26 previously refunded. However, a former member may restore
27 credits previously forfeited by acceptance of a refund
28 without returning to service by applying in writing and
29 repaying to the System, by April 1, 1993, the amount of the
30 refund plus regular interest calculated from the date of
31 refund to the date of repayment.
32 The repayment of refunds issued prior to January 1, 1984
33 shall consist of the amount refunded plus 5% interest per
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1 annum compounded annually for the period from the date of the
2 refund to the end of the month in which repayment is made.
3 The repayment of refunds issued after January 1, 1984 shall
4 consist of the amount refunded plus regular interest for the
5 period from the date of refund to the end of the month in
6 which repayment is made. However, in the case of a refund
7 that is repaid in a lump sum between January 1, 1991 and July
8 1, 1991, repayment shall consist of the amount refunded plus
9 interest at the rate of 2.5% per annum compounded annually
10 from the date of the refund to the end of the month in which
11 repayment is made.
12 Upon repayment, the member shall receive credit for the
13 service, member contributions and regular interest that was
14 forfeited by acceptance of the refund as well as regular
15 interest for the period of non-membership. Such repayment
16 shall be made in full before retirement either in a lump sum
17 or in installment payments in accordance with such rules as
18 may be adopted by the board.
19 (b-5) The Board may adopt rules governing the repayment
20 of refunds and establishment of credits in cases involving
21 awards of back pay or reinstatement. The rules may authorize
22 repayment of a refund in installment payments and may waive
23 the payment of interest on refund amounts repaid in full
24 within a specified period.
25 (c) A member who is unmarried on the date of retirement
26 or who does not have an eligible survivors annuity
27 beneficiary at that date is entitled to a refund of
28 contributions for widow's annuity or survivors annuity
29 purposes, or both, as the case may be, without interest.
30 (d) Any member who has service credit in any position
31 for which an alternative retirement annuity is provided and
32 in relation to which an increase in the rate of employee
33 contribution is required, shall be entitled to a refund,
34 without interest, of that part of the member's employee
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1 contribution which results from that increase in the employee
2 rate if the member does not qualify for that alternative
3 retirement annuity at the time of retirement.
4 (Source: P.A. 86-1488; 87-1265.)
5 (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
6 (Text of Section before amendment by P.A. 89-507)
7 Sec. 14-133. Contributions on behalf of members.
8 (a) Each participating employee shall make contributions
9 to the System, based on the employee's compensation, as
10 follows:
11 (1) Covered employees, except as indicated below,
12 3.5% 3 1/2% for retirement annuity, and 0.5% 1/2 of 1%
13 for a widow or survivors annuity;
14 (2) Noncovered employees, except as indicated
15 below, 7% for retirement annuity and 1% for a widow or
16 survivors annuity;
17 (3) Noncovered employees serving in a position in
18 which "eligible creditable service" as defined in Section
19 14-110 may be earned, 8.5% 8 1/2% for retirement annuity
20 and 1% for a widow or survivors annuity;
21 (4) Covered employees serving in a position in
22 which "eligible creditable service" as defined in Section
23 14-110 may be earned, 5% for retirement annuity and 0.5%
24 for a widow or survivors annuity;
25 (5) Each full-time security employee of the
26 Department of Corrections or of the Department of Mental
27 Health and Developmental Disabilities who is a covered
28 employee, 5% for retirement annuity and 0.5% 1/2 of 1%
29 for a widow or survivors annuity;
30 (6) Each full-time security employee of the
31 Department of Corrections or of the Department of Mental
32 Health and Developmental Disabilities who is not a
33 covered employee, 8.5% 8 1/2% for retirement annuity and
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1 1% for a widow or survivors annuity.
2 (b) Contributions shall be in the form of a deduction
3 from compensation and shall be made notwithstanding that the
4 compensation paid in cash to the employee shall be reduced
5 thereby below the minimum prescribed by law or regulation.
6 Each member is deemed to consent and agree to the deductions
7 from compensation provided for in this Article, and shall
8 receipt in full for salary or compensation.
9 (Source: P.A. 86-273.)
10 (Text of Section after amendment by P.A. 89-507)
11 Sec. 14-133. Contributions on behalf of members.
12 (a) Each participating employee shall make contributions
13 to the System, based on the employee's compensation, as
14 follows:
15 (1) Covered employees, except as indicated below,
16 3.5% 3 1/2% for retirement annuity, and 0.5% 1/2 of 1%
17 for a widow or survivors annuity;
18 (2) Noncovered employees, except as indicated
19 below, 7% for retirement annuity and 1% for a widow or
20 survivors annuity;
21 (3) Noncovered employees serving in a position in
22 which "eligible creditable service" as defined in Section
23 14-110 may be earned, 8.5% 8 1/2% for retirement annuity
24 and 1% for a widow or survivors annuity;
25 (4) Covered employees serving in a position in
26 which "eligible creditable service" as defined in Section
27 14-110 may be earned, 5% for retirement annuity and 0.5%
28 for a widow or survivors annuity;
29 (5) Each full-time security employee of the
30 Department of Corrections or of the Department of Human
31 Services who is a covered employee, 5% for retirement
32 annuity and 0.5% 1/2 of 1% for a widow or survivors
33 annuity;
34 (6) Each full-time security employee of the
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1 Department of Corrections or of the Department of Human
2 Services who is not a covered employee, 8.5% 8 1/2% for
3 retirement annuity and 1% for a widow or survivors
4 annuity.
5 (b) Contributions shall be in the form of a deduction
6 from compensation and shall be made notwithstanding that the
7 compensation paid in cash to the employee shall be reduced
8 thereby below the minimum prescribed by law or regulation.
9 Each member is deemed to consent and agree to the deductions
10 from compensation provided for in this Article, and shall
11 receipt in full for salary or compensation.
12 (Source: P.A. 89-507, eff. 7-1-97.)
13 (40 ILCS 5/21-103) (from Ch. 108 1/2, par. 21-103)
14 Sec. 21-103. Political subdivision - election of
15 coverage.
16 (a) Any political subdivision other than a school
17 district and other than a political subdivision which is
18 participating in the Illinois Municipal Retirement Fund under
19 Article 7 of this Code may, by resolution of the governing
20 body (in the case of a township, at an annual town meeting or
21 at a special town meeting called for that purpose), or by
22 referendum, elect to have its employees covered by the Social
23 Security Act.
24 Whenever a petition requesting Social Security coverage
25 for employees, signed by not less than 5% of the legal voters
26 of the political subdivision, is presented to the governing
27 body, such governing body shall cause such proposition to be
28 certified to the proper election officials who shall submit
29 the proposition to the voters at the next appropriate
30 election in accordance with the general election law, or in
31 the case of a township at the next annual town meeting if the
32 petition is received more than 15 and less than 60 days
33 before the annual town meeting, or else at a special town
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1 meeting called for that purpose. In the territory of the
2 political subdivision every elector may vote upon the
3 proposition stated in the petition. Such proposition shall
4 be in substantially the following form:
5 -------------------------------------------------------------
6 Shall....(political subdivision)
7 enter into a coverage agreement with
8 the Social Security Division of YES
9 the State Employees' Retirement ----------------------
10 System for extension of Federal Social NO
11 Security coverage to employees
12 of....(political subdivision)?
13 -------------------------------------------------------------
14 If a majority of all of the votes cast upon the
15 proposition is in favor thereof, or if the governing body has
16 adopted a resolution or ordinance providing for coverage of
17 its employees, the governing body shall execute the coverage
18 agreement provided by the State Agency and submit such
19 coverage agreement to the State Agency for approval. The
20 coverage agreement shall be approved by the State Agency if
21 it meets the requirements of subsection (b).
22 (b) Each coverage agreement of a political subdivision
23 and any amendment thereof shall be approved by the State
24 Agency if it finds that such coverage agreement, or such
25 coverage agreement as amended, is in conformity with such
26 requirements as are provided in the regulations of the State
27 Agency, except that no such coverage agreement shall be
28 approved unless:
29 (1) it is in conformity with the requirements of
30 the Social Security Act and with the Federal-State
31 Agreement entered into under this Article;
32 (2) it provides that all services which constitute
33 employment and are performed in the employ of the
34 political subdivision by any employees thereof shall be
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1 covered by the coverage agreement, except that such
2 agreement may, if the political subdivision so requests,
3 exclude all services in one or more classes of elective
4 positions, or positions the compensation for which is on
5 a fee basis;
6 (3) it provides for such methods of administration
7 of the coverage agreement by the political subdivision as
8 are found by the State Agency to be necessary for the
9 proper and efficient administration of the coverage
10 agreement; and
11 (4) it provides for an effective date of coverage
12 not earlier than the first day of the fifth calendar year
13 preceding the year in which the resulting modification of
14 the Federal-State Agreement is agreed to by the Secretary
15 and the State.
16 (c) In addition to the requirements in subsection (b),
17 no coverage agreement which provides for an effective date of
18 coverage prior to January 1, 1987 shall be approved unless:
19 (1) it specifies the sources from which the funds
20 required of it by this Article are expected to be
21 derived, and contains reasonable assurance that such
22 sources will be adequate for such purpose;
23 (2) it contains a promise to deliver the proper
24 funds to the State Agency on or before the date requested
25 by the State Agency;
26 (3) it specifies some officer to act as custodian
27 of all funds collected and to be responsible to the State
28 Agency for the delivery of such funds;
29 (4) it provides that the political subdivision
30 shall pay into the Social Security Contribution Fund
31 contributions on covered wages at such times as the State
32 Agency may by regulations prescribe, in the amounts and
33 at the rates provided by this Article; and
34 (5) it provides that the political subdivision will
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1 make such reports as the State Agency may from time to
2 time require, and comply with such provisions as the
3 State Agency or the Secretary may from time to time find
4 necessary.
5 (Source: P.A. 85-442.)
6 (40 ILCS 5/21-109) (from Ch. 108 1/2, par. 21-109)
7 Sec. 21-109. Payment of Contributions.
8 (a) Absolute coverage group: Each political subdivision
9 which has established Social Security coverage for its
10 employees under this Article shall pay into the Social
11 Security Contribution Fund contributions on covered wages
12 paid prior to January 1, 1987 in the amounts and at the rates
13 prescribed by subchapters A and B of the Federal Insurance
14 Contributions Act at the times prescribed in the regulations
15 of the State Agency. Taxes due on wages covered under the
16 Social Security Coverage Agreement paid after December 31,
17 1986 shall be paid by each political subdivision to the
18 Internal Revenue Service in the amounts and at the rates
19 specified in the Federal Insurance Contributions Act and at
20 the times prescribed in the regulations of the Internal
21 Revenue Service.
22 Every political subdivision required to make payments is
23 authorized in consideration of the employee's retention in,
24 or entry upon, employment to impose upon each of its
25 employees, as to services which are covered by the coverage
26 agreement, a contribution with respect to wages computed by
27 applying the rates of contribution prescribed by Subchapter A
28 of the Federal Insurance Contributions Act, and to deduct the
29 amount of such contribution from such employee's wages when
30 paid.
31 Failure to deduct such contribution shall not relieve the
32 employee or employer of liability therefor.
33 (b) Retirement system coverage group: As a condition of
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1 its coverage agreement, the governing body or board of
2 trustees of any retirement system which has adopted Social
3 Security coverage for its members under this Article shall
4 assume responsibility to the State Agency for the compiling
5 of wage data, the collection of related contributions
6 prescribed by subchapters A and B of the Federal Insurance
7 Contributions Act, and the timely reporting and payment of
8 such items upon the wages of all covered employees paid prior
9 to January 1, 1987 in the manner and at the times prescribed
10 by the State Agency.
11 Coincident to the adoption of coverage, the governing
12 body or board of trustees of the retirement system shall
13 promulgate rules and regulations in conformity with federal
14 regulations, applicable to the State or local governmental
15 entities or to the agencies and employees participating
16 therein, to insure the correct application of coverage and
17 the timely and accurate reporting of wages and collection of
18 contributions.
19 In the event of failure by the retirement system or the
20 governmental entities or agencies participating therein to
21 comply with the timely reporting and payment requirements
22 imposed by this Section, the retirement system shall be
23 assessed any federal interest or late filing penalties
24 arising therefrom.
25 The contributions collected under this Section by any
26 retirement system which elects to adopt coverage shall be
27 remitted at such times as the State Agency shall prescribe
28 for deposit into the Social Security Contribution Fund.
29 The employees comprising the executive and administrative
30 staff of any retirement system which elects to adopt the
31 provisions of this Article shall have the contributions made
32 by the body employing them.
33 (c) If more or less than the correct amount of
34 contributions is paid to the State Agency, proper adjustment,
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1 or refund without interest if adjustment is impractical,
2 shall be made in such manner and at such times as the State
3 Agency shall prescribe.
4 (Source: P.A. 85-442.)
5 (40 ILCS 5/21-115) (from Ch. 108 1/2, par. 21-115)
6 Sec. 21-115. Special fund abolished; designation of
7 remittance agents.
8 (a) The Social Security Contribution Fund is abolished
9 at the close of business on June 30, 1997. Any balance then
10 remaining in that Fund shall be transferred to the Social
11 Security Administration Fund created under Section 21-109.1,
12 and any amounts thereafter designated for deposit into the
13 Social Security Contribution Fund shall instead be deposited
14 into the Social Security Administration Fund. There is
15 hereby established a special fund to be known as the Social
16 Security Contribution Fund. Such fund shall consist of and
17 there shall be deposited in such fund (1) all contributions,
18 interest, and penalties collected under this Article, except
19 as provided in subsection (f) of this Section, (2) all sums
20 recovered upon the bond of the custodian or otherwise for
21 losses sustained by the fund, (3) payments of Medicare taxes
22 in accordance with State Agency regulations, and (4) all
23 other moneys received for the fund from any other source. All
24 moneys in the fund shall be mingled and undivided. Subject to
25 the provisions of this Article, the State Agency is vested
26 with full power, authority and jurisdiction over the fund,
27 including all moneys and property or securities belonging
28 thereto, and may perform any and all acts whether or not
29 specifically designated, which are necessary to the
30 administration thereof.
31 (b) The Social Security Contribution Fund shall be
32 established and held separate and apart from any other funds
33 or moneys of the State of Illinois and shall be used and
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1 administered exclusively for the purpose of this Article.
2 Withdrawals from such fund shall be made solely for the
3 following purposes:
4 (1) payment of amounts required to be paid to the
5 Secretary of the Treasury in relation to Social Security and
6 Medicare coverage,
7 (2) payment of refunds for overpayments which are not
8 otherwise adjustable,
9 (3) payment into the General Revenue Fund of the amount
10 by which penalties collected pursuant to Section 21-112 of
11 this Article exceed the federal interest charges for the
12 corresponding period,
13 (4) payment into the General Revenue Fund of the
14 necessary expenses collected for the performance of tax
15 audits for failure to pay contributions pursuant to Section
16 21-113 of this Article,
17 (5) pursuant to recovery of Social Security
18 contributions paid to the Secretary of the Treasury for the
19 period from January 1, 1979 to June 30, 1981 on sick pay
20 excluded from wages pursuant to Section 209(b) of the Social
21 Security Act, (i) payment of a fee to a private vendor,
22 selected by competitive bidding in accordance with The
23 Illinois Purchasing Act, for the performance of all necessary
24 administrative actions required to obtain and distribute such
25 recovery, the fee to be contingent upon the amount of the
26 recovery and determined by contract, (ii) payment to the
27 Secretary of the Treasury of State Social Security
28 contributions for nonpayroll earnings received by court
29 reporters between January 1, 1977 and December 31, 1986, and
30 (iii) refund to the General Revenue Fund of the remainder of
31 the employer's share of the contributions so recovered,
32 (6) payment of reasonable expenses incurred in locating
33 former State employees for the purpose of refunding the
34 employees' share of Social Security contributions refunded to
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1 the State as a result of the State's actions requesting
2 refunds of contributions paid to the Secretary of the
3 Treasury on sick pay as noted in item (5) and on the amount
4 of voluntary salary reductions by State employees
5 participating in the State's cafeteria plan of fringe
6 benefits under Section 125 of the Internal Revenue Code,
7 (7) out of the employer's share of contributions
8 recovered as a result of the State's action to reduce
9 reported wages by the amount of voluntary salary reduction by
10 State employees participating in the State's cafeteria plan
11 of fringe benefits under Section 125 of the Internal Revenue
12 Code, (i) payment to the Secretary of the Treasury of State
13 Social Security contributions for nonpayroll earnings
14 received by court reporters between January 1, 1977 and
15 December 31, 1986, and (ii) payment of the remainder into the
16 General Revenue Fund, and
17 (8) payment into the Social Security Administration Fund
18 established by Section 21-109.1 of this Article to satisfy
19 the State's liability for Social Security and Medicare
20 contribution liability on wages paid after December 31, 1986,
21 and to dispose of any remaining balance in the Social
22 Security Contribution Fund not required to satisfy the
23 State's liability on wages paid prior to January 1, 1987.
24 (c) From the Social Security Contribution Fund the
25 custodian of the fund shall pay to the Secretary of the
26 Treasury such amounts at such times as may be directed by the
27 State Agency.
28 (d) The Treasurer of the State of Illinois shall be
29 ex-officio treasurer and custodian of the Social Security
30 Contribution Fund and shall administer such fund in
31 accordance with the provisions of this Article and the
32 directions of the State Agency, and shall pay all warrants of
33 the State Comptroller in accordance with the provisions of
34 this Section and with such regulations as the State Agency
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1 may prescribe pursuant thereto.
2 (e) The Comptroller of the State of Illinois is
3 authorized and is directed to draw warrants upon the State
4 Treasurer payable from the Social Security Contribution Fund
5 for purposes provided for in this Article upon presentation
6 of vouchers approved by the State Agency.
7 (b) (f) The State Agency is authorized to designate any
8 retirement system which has adopted coverage under this
9 Article to act as remittance agent on behalf of the State
10 Agency and to make payment of the Social Security
11 contributions collected upon the wages of employees within
12 the retirement system coverage group directly to the
13 designated Federal Reserve Bank without the necessity of
14 deposit or clearance of such collections through the Social
15 Security Contribution Fund. Any retirement system so
16 designated as a remittance agent shall continue to be subject
17 to the regulations of the State Agency with respect to
18 coverage determinations, wage reporting, corrective
19 adjustments, and accountability for tax collections in the
20 same manner as any other covered entity.
21 (Source: P.A. 86-272.)
22 Section 95. No acceleration or delay. Where this Act
23 makes changes in a statute that is represented in this Act by
24 text that is not yet or no longer in effect (for example, a
25 Section represented by multiple versions), the use of that
26 text does not accelerate or delay the taking effect of (i)
27 the changes made by this Act or (ii) provisions derived from
28 any other Public Act.
29 Section 99. Effective date. This Act takes effect upon
30 becoming law.