State of Illinois
91st General Assembly
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91_HB2074

 
                                               LRB9102930EGfg

 1        AN ACT in relation to public employee  pension  benefits,
 2    amending named Acts.

 3        Be  it  enacted  by  the People of the State of Illinois,
 4    represented in the General Assembly:

 5        Section 5.  The  Illinois  Pension  Code  is  amended  by
 6    changing  Sections  7-118, 7-137, 7-141, 7-146, 7-152, 7-156,
 7    7-157, 7-158, 7-164, 7-172, 7-205, and 7-206 as follows:

 8        (40 ILCS 5/7-118) (from Ch. 108 1/2, par. 7-118)
 9        Sec. 7-118.  "Beneficiary":
10        (a)  The  surviving  spouse  of  an  employee  or  of  an
11    employee annuitant, or if no surviving spouse  survives,  the
12    person  or  persons designated by a participating employee or
13    employee annuitant, or if no person so  designated  survives,
14    or  if  no designation is on file, the estate of the employee
15    or employee annuitant.  The person or persons designated by a
16    beneficiary annuitant, or if no person  designated  survives,
17    or   if  no  designation  is  on  file,  the  estate  of  the
18    beneficiary annuitant.  The  estate  of  a  surviving  spouse
19    annuitant  where  the employee or employee annuitant filed no
20    designation, or no person designated survives at the death of
21    a surviving spouse annuitant.  Designations of  beneficiaries
22    shall  be  in  writing  on  forms prescribed by the board and
23    effective upon filing in the fund offices.   The  designation
24    forms  shall  provide for contingent beneficiaries.  Divorce,
25    dissolution or annulment of marriage revokes the  designation
26    of  an  employee's  former  spouse  as  a  beneficiary  on  a
27    designation   executed  before entry of judgment for divorce,
28    dissolution or annulment of marriage.
29        (b)  Notwithstanding the foregoing, an  employee,  former
30    employee  who  has  not  yet received a retirement annuity or
31    separation benefit, or employee annuitant may elect  to  name
 
                            -2-                LRB9102930EGfg
 1    any person, trust or charity to be the primary beneficiary of
 2    any  death  benefit  payable  by  reason  of his death.  Such
 3    election shall state specifically whether it is his intention
 4    to exclude the spouse,  shall  be  in  writing,  and  may  be
 5    revoked  at any time.  Such election or revocation shall take
 6    effect upon being filed in the fund offices.
 7        (c)  If a surviving spouse annuity is payable to a former
 8    spouse upon the death of an employee  annuitant,  the  former
 9    spouse,  unless  designated  by  the employee annuitant after
10    dissolution of the marriage, shall not be the beneficiary for
11    the purposes of the $5,000 $3,000 death benefit payable under
12    subparagraph 6 of Section 7-164.  This benefit shall be  paid
13    to  the  designated beneficiary of the employee annuitant or,
14    if there is  no  designation,  then  to  the  estate  of  the
15    employee annuitant.
16    (Source: P.A. 89-136, eff. 7-14-95; 90-448, eff. 8-16-97.)

17        (40 ILCS 5/7-137) (from Ch. 108 1/2, par. 7-137)
18        Sec. 7-137.  Participating and covered employees.
19        (a)  The persons described in this paragraph (a) shall be
20    included  within  and be subject to this Article and eligible
21    to  benefits  from  this  fund,  beginning  upon  the   dates
22    hereinafter specified:
23             1.  Except as to the employees specifically excluded
24        under the provisions of this Article, all persons who are
25        employees   of   any   municipality  (or  instrumentality
26        thereof)  or   participating   instrumentality   on   the
27        effective  date  of  participation of the municipality or
28        participating   instrumentality   beginning   upon   such
29        effective date.
30             2.  Except as to the employees specifically excluded
31        under the provisions of this Article,  all  persons,  who
32        became  employees  of  any participating municipality (or
33        instrumentality thereof) or participating instrumentality
 
                            -3-                LRB9102930EGfg
 1        after  the  effective  date  of  participation  of   such
 2        municipality  or participating instrumentality, beginning
 3        upon the date such person becomes an employee.
 4             3.  All persons who file notice with  the  board  as
 5        provided in paragraph (b)2 or (b)3 and 3 of this Section,
 6        beginning upon the date of filing such notice.
 7        (b)  The   following   described  persons  shall  not  be
 8    considered participating employees eligible for benefits from
 9    this fund, but shall be included within  and  be  subject  to
10    this  Article  (each of the descriptions is not exclusive but
11    is cumulative):
12             1.  Any person who occupies an office or is employed
13        in a position  normally  requiring  performance  of  duty
14        during  less  than  600  hours  a year for a municipality
15        (including   all   instrumentalities   thereof)   or    a
16        participating  instrumentality.  If  a  school  treasurer
17        performs  services for more than one school district, the
18        total number of hours of service  normally  required  for
19        the  several  school  districts  shall  be  considered to
20        determine whether he qualifies under this paragraph;
21             2.  Any person who holds elective office  unless  he
22        has  elected  while in that office in a written notice on
23        file with the board to become a participating employee;
24             3.  Any person working for a  city  hospital  unless
25        any  such person, while in active employment, has elected
26        in a written notice on file with the board  to  become  a
27        participating   employee   and  notification  thereof  is
28        received by the board;
29             4.  Any person who becomes an  employee  after  June
30        30,   1979   as   a  public  service  employment  program
31        participant under the  federal  Comprehensive  Employment
32        and  Training  Act and whose wages or fringe benefits are
33        paid in whole or in part by  funds  provided  under  such
34        Act.
 
                            -4-                LRB9102930EGfg
 1        (c)  Any  person electing to be a participating employee,
 2    pursuant to paragraph (b) of this Section may not change such
 3    election, except as provided in Section 7-137.1.
 4        (d)  Any employee who occupied  the  position  of  school
 5    nurse in any participating municipality on August 8, 1961 and
 6    continuously  thereafter  until  the  effective  date  of the
 7    exercise of the option authorized by this  subparagraph,  who
 8    on  August  7,  1961 was a member of the Teachers' Retirement
 9    System  of  Illinois,  by  virtue  of  certification  by  the
10    Department of Registration and Education as a  public  health
11    nurse,  may  elect to terminate participation in this Fund in
12    order  to  re-establish  membership  in  such  System.    The
13    election  may  be  exercised by filing written notice thereof
14    with the  Board  or  with  the  Board  of  Trustees  of  said
15    Teachers'  Retirement  System,  not  later than September 30,
16    1963, and shall be effective on the first day of the calendar
17    month next following the month in which the notice was filed.
18    If the written notice is filed with such Teachers' Retirement
19    System, that System shall immediately notify this  Fund,  but
20    neither  failure  nor  delay in notification shall affect the
21    validity of  the  employee's  election.   If  the  option  is
22    exercised,  the  Fund  shall notify such Teachers' Retirement
23    System of such fact and transfer to that system  the  amounts
24    contributed  by the employee to this Fund, including interest
25    at 3% per annum, but excluding  contributions  applicable  to
26    social  security  coverage during the period beginning August
27    8, 1961 to the effective date  of  the  employee's  election.
28    Participation  in  this  Fund  as  to any credits on or after
29    August 8, 1961 and up to the effective date of the employee's
30    election shall terminate on such effective date.
31        (e)  Any  participating  municipality  or   participating
32    instrumentality,  other  than  a  school  district or special
33    education joint agreement created under Section  10-22.31  of
34    the   School  Code,  may,  by  a resolution or ordinance duly
 
                            -5-                LRB9102930EGfg
 1    adopted  by  its  governing  body,  elect  to  exclude   from
 2    participation  and  eligibility  for benefits all persons who
 3    are employed after the effective date of such  resolution  or
 4    ordinance  and  who  occupy  an  office  or are employed in a
 5    position normally requiring performance of duty for less than
 6    1000  hours  per  year  for  the  participating  municipality
 7    (including all instrumentalities  thereof)  or  participating
 8    instrumentality,  except  for  persons employed in a position
 9    normally requiring performance of duty for 600 hours or  more
10    per   year   (i)   by   such  participating  municipality  or
11    participating instrumentality prior to the effective date  of
12    the  resolution  or  ordinance,  (ii)  by  any  participating
13    municipality   or   participating  instrumentality  prior  to
14    January 1, 1982, and (iii) by a participating municipality or
15    participating instrumentality that,  which  had  not  adopted
16    such  a  resolution  when  the  person  was employed, and the
17    function served by the  employee's  position  is  assumed  by
18    another    participating    municipality   or   participating
19    instrumentality, or (iv) by any participating municipality or
20    participating instrumentality upon  a  return  to  employment
21    after  retirement  from  a position (not necessarily with the
22    same employer) normally requiring the performance of duty for
23    at least 600 but less than 1000 hours per year for which  the
24    person   participated   in   the   Fund.    A   participating
25    municipality or participating instrumentality included in and
26    subject  to this Article after January 1, 1982 may adopt such
27    resolution or ordinance only prior to  the  date  it  becomes
28    included in and subject to this Article.  Notwithstanding the
29    foregoing,  a  participating  municipality  or  participating
30    instrumentality  which  is  formed  solely  to succeed to the
31    functions of a participating  municipality  or  participating
32    instrumentality  shall be considered to have adopted any such
33    resolution or ordinance which may have been applicable to the
34    employees performing such functions.  The  election  made  by
 
                            -6-                LRB9102930EGfg
 1    the  resolution  or  ordinance  shall take effect at the time
 2    specified in the resolution or ordinance, and once  effective
 3    shall be irrevocable.
 4        The change in this subsection made by this amendatory Act
 5    of  the  91st  General Assembly also applies to persons whose
 6    initial withdrawal from service occurred before the effective
 7    date of this amendatory Act.
 8    (Source: P.A. 86-272; 87-740; 87-850.)

 9        (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
10        Sec.   7-141.   Retirement   annuities   -    Conditions.
11    Retirement  annuities  shall  be  payable  as hereinafter set
12    forth:
13        (a)  A participating employee who, regardless  of  cause,
14    is   separated   from   the   service  of  all  participating
15    municipalities    and    instrumentalities    thereof     and
16    participating   instrumentalities  shall  be  entitled  to  a
17    retirement annuity provided:
18             1.  He is at least age 55,  or  in  the  case  of  a
19        person  who  is  eligible  to have his annuity calculated
20        under Section 7-142.1, he is at least age 50.;
21             2.  He is (i) an employee who was  employed  by  any
22        participating      municipality      or     participating
23        instrumentality which had not elected to exclude  persons
24        employed  in  positions normally requiring performance of
25        duty for less than 1000 hours per year or was employed in
26        a position normally requiring performance of duty for 600
27        hours or more per year prior  to  such  election  by  any
28        participating      municipality      or     participating
29        instrumentality included in and subject to  this  Article
30        on or before the effective date of this amendatory Act of
31        1981  which  made  such  election  and is not entitled to
32        receive earnings for employment in  a  position  normally
33        requiring  performance  of duty for 600 hours or more per
 
                            -7-                LRB9102930EGfg
 1        year   for    any    participating    municipality    and
 2        instrumentalities      thereof      and     participating
 3        instrumentality; or (ii) an  employee  who  was  employed
 4        only  by  a  participating  municipality or participating
 5        instrumentality,  or  participating   municipalities   or
 6        participating  instrumentalities,  which  have elected to
 7        exclude   persons   in   positions   normally   requiring
 8        performance of duty for less than  1000  hours  per  year
 9        after  the  effective date of such exclusion or which are
10        included under and  subject  to  the  Article  after  the
11        effective  date of this amendatory Act of 1981 and elects
12        to exclude persons in such positions, and is not entitled
13        to receive earnings for employment in a position normally
14        requiring performance of duty for 1000 hours or more  per
15        year    by   such   a   participating   municipality   or
16        participating instrumentality.;
17             3.  The  amount   of   his   annuity,   before   the
18        application  of  paragraph  (b)  of  Section 7-142, is at
19        least $10 per month.;
20             4.  If he  first  became  a  participating  employee
21        after  December  31,  1961,  he  has  at least 8 years of
22        service.
23        (b)  Retirement annuities shall be payable:
24             1.  As provided in Section 7-119.;
25             2.  Except as provided in item 3,  upon  receipt  by
26        the  fund  of  a  written  application by the board.  The
27        effective date may be no earlier than the  first  day  of
28        the  first  full  calendar  month  after  termination  of
29        participating employment. not more than one year prior to
30        the date of the receipt by the fund of the application;
31             3.  Upon  attainment of age 70 1/2 if (i) the member
32        has not submitted an application for  the  annuity,  (ii)
33        the  member has at least 8 years of service credit and is
34        no longer in service, (iii)  the  pension  amount  is  at
 
                            -8-                LRB9102930EGfg
 1        least  $30 per month, and (iv) the Fund is able to locate
 2        the member.;
 3             4.  To the beneficiary of the deceased annuitant for
 4        the unpaid amount accrued to date of death, if any.
 5        (c)  The amendment to subdivision (b)(2) of this  Section
 6    made  by  this  amendatory  Act of the 91st General Assembly,
 7    removing the one  year  limitation  on  retroactive  annuity,
 8    applies  to  every  person  who has not yet begun receiving a
 9    retirement annuity, without  regard  to  whether  the  person
10    terminated  employment  prior  to  the effective date of this
11    amendatory Act.
12    (Source: P.A. 87-740.)

13        (40 ILCS 5/7-146) (from Ch. 108 1/2, par. 7-146)
14        Sec. 7-146.  Temporary disability benefits - Eligibility.
15    Temporary   disability   benefits   shall   be   payable   to
16    participating employees as hereinafter provided.
17        (a)  The  participating  employee  shall  be   considered
18    temporarily disabled if:
19             1.  He  is  unable  to  perform  the  duties  of any
20        position which might reasonably be assigned to him by his
21        employing  municipality  or  instrumentality  thereof  or
22        participating instrumentality due to mental  or  physical
23        disability caused by bodily injury or disease, other than
24        as  a  result  of  self-inflicted  injury or addiction to
25        narcotic drugs;
26             2.  The Board has  received  written  certifications
27        from at least one 1 licensed and practicing physician and
28        the  governing  body  of  the  employing  municipality or
29        instrumentality thereof or participating  instrumentality
30        stating  that the employee meets the conditions set forth
31        in subparagraph 1 of this paragraph (a).
32        (b)  A temporary disability benefit shall be payable to a
33    temporarily disabled employee provided:
 
                            -9-                LRB9102930EGfg
 1             1.  He:
 2                  (i)  has  at  least   one   year   of   service
 3             immediately  preceding  at  the  date  the temporary
 4             disability was incurred and has  made  contributions
 5             to  the  fund  for  at least the number of months of
 6             service normally required in his position  during  a
 7             12-month  period, or has at least 5 years of service
 8             credit, the last year of which immediately  precedes
 9             such date; or
10                  (ii)  had qualified under clause (i) above, but
11             had   an  interruption  in  service  with  the  same
12             participating    municipality    or    participating
13             instrumentality of not more than 3 months in the  12
14             months  preceding  the date the temporary disability
15             was incurred and was not paid a separation  benefit;
16             or
17                  (iii)  had  qualified  under  clause (i) above,
18             but had an interruption after 20 or  more  years  of
19             creditable   service,  was  not  paid  a  separation
20             benefit, and returned to service prior to  the  date
21             the disability was incurred.
22             Item  (iii)  of  this subdivision shall apply to all
23        employees whose disabilities were incurred  on  or  after
24        July  1, 1985, and any such employee who becomes eligible
25        for a  disability  benefit  under  item  (iii)  shall  be
26        entitled to receive a lump sum payment of any accumulated
27        disability  benefits  which  may accrue from the date the
28        disability was incurred until the effective date of  this
29        amendatory Act of 1987.
30             Periods  of  qualified  leave  granted in compliance
31        with the federal Family and Medical Leave  Act  shall  be
32        ignored   for  purposes  of  determining  the  number  of
33        consecutive months of employment under  this  subdivision
34        (b)1.
 
                            -10-               LRB9102930EGfg
 1             2.  He has been temporarily disabled for at least 30
 2        days,  except  where  a former temporary or permanent and
 3        total disability has reoccurred within 6 months after the
 4        employee has returned to service.
 5             3.  He is receiving no earnings from a participating
 6        municipality or instrumentality thereof or  participating
 7        instrumentality,  except  as allowed under subsection (f)
 8        of Section 7-152.
 9             4.  He has not refused to  submit  to  a  reasonable
10        physical  examination  by  a  physician  appointed by the
11        Board.
12             5.  His disability is not the result of a mental  or
13        physical  condition which existed on the earliest date of
14        service  from  which  he   has   uninterrupted   service,
15        including  prior  service, at the date of his disability,
16        provided that this limitation is not  applicable  if  the
17        date of disability is after December 31, 2000, nor is it
18        shall  not be applicable to a participating employee who:
19        (i) on the date of disability has 5 years  of  creditable
20        service,  exclusive  of creditable service for periods of
21        disability; or (ii) received no medical treatment for the
22        condition for the  3  years  immediately  prior  to  such
23        earliest date of service.
24             6.  He  is  not  separated  from  the service of the
25        participating municipality or instrumentality thereof  or
26        participating  instrumentality  which employed him on the
27        date his  temporary  disability  was  incurred;  for  the
28        purposes  of  payment of temporary disability benefits, a
29        participating employee, whose employment relationship  is
30        terminated by his employing municipality, shall be deemed
31        not  to  be  separated  from the service of his employing
32        municipality  or  participating  instrumentality  if   he
33        continues  disabled  by the same condition and so long as
34        he is otherwise entitled to such disability benefit.
 
                            -11-               LRB9102930EGfg
 1    (Source: P.A. 90-766, eff. 8-14-98.)

 2        (40 ILCS 5/7-152) (from Ch. 108 1/2, par. 7-152)
 3        Sec. 7-152.  Disability benefits - Amount.  The amount of
 4    the monthly temporary  and  total  and  permanent  disability
 5    benefits  shall  be 50% of the participating employee's final
 6    rate of earnings on the date disability was incurred, subject
 7    to the following adjustments:
 8        (a)  The amount of the monthly temporary  and  total  and
 9    permanent  disability benefits shall be 60% (rather than 50%)
10    of the participating employee's final rate of earnings on the
11    date disability was  incurred,  if  the  date  of  disability
12    occurs after the employer files with the board an undertaking
13    to  be  responsible  for  the additional costs resulting from
14    this increase.  The undertaking may  provide  for  all  or  a
15    portion  of  those  additional  costs  to be collected by the
16    employer from its employees, through deductions from earnings
17    or in any other manner.  The undertaking may be terminated by
18    the employer (or rejected by the board) at any time, in which
19    case benefits granted thereafter shall be based  on  the  50%
20    rate,  but  benefits  already  based on the 60% rate shall be
21    unaffected by the termination of the undertaking.
22        (a-5)  If the participating employee has a  reduced  rate
23    of  earnings  at  the  time  his employment ceases because of
24    disability, the rate of earnings shall  be  computed  on  the
25    basis of his last 12 month period of full-time employment.
26        (b)  If  the  participating  employee  is  eligible for a
27    disability benefit under the Federal Social Security Act, the
28    amount of monthly disability benefits shall be  reduced,  but
29    not  to  less  than  $10  a  month, by the amount he would be
30    eligible to receive as a disability benefit under the Federal
31    Social Security Act, whether or not because of service  as  a
32    covered  employee under this Article.  The reduction shall be
33    effective as of the month the employee is eligible for Social
 
                            -12-               LRB9102930EGfg
 1    Security  disability  benefits.   The  Board  may  make  such
 2    reduction if it appears that the employee may be so  eligible
 3    pending  determination of eligibility and make an appropriate
 4    adjustment if necessary after  such  determination.   If  the
 5    employee,  because  of  his  refusal to accept rehabilitation
 6    services under the Federal Rehabilitation Act of 1973 or  the
 7    Federal  Social  Security  Act,  or  because  he is receiving
 8    workers'  compensation  benefits,  has  his  Social  Security
 9    benefits reduced or terminated, the disability benefit  shall
10    be  reduced as if the employee were receiving his full Social
11    Security disability benefit.
12        (c)  If the employee is over age 65, was not eligible for
13    a Social Security benefit immediately before reaching age  65
14    and  is  eligible  for  a  Social  Security old-age insurance
15    benefit, the amount of the monthly disability  benefit  shall
16    be  reduced,  but not to less than $10 a month, by the amount
17    of the old-age insurance benefit to  which  the  employee  is
18    entitled  whether  or not the employee applies for the Social
19    Security old-age insurance benefit.  This reduction shall  be
20    made  in  the  month  after  the  month in which the employee
21    attains age 65.  However, if the  employee  was  receiving  a
22    Social  Security  disability  benefit before reaching age 65,
23    the disability benefits after  age  65  shall  be  determined
24    under subsection (b) of this Section.
25        (d)  The  amount  of  disability  benefits  shall  not be
26    reduced by reason of any increase, other than  one  resulting
27    from  a  correction  in  the  employee's wage records, in the
28    amount of disability or old-age insurance benefits under  the
29    Federal  Social  Security  Act  which  takes effect after the
30    month of the initial reduction under paragraph (b) or (c)  of
31    this Section.
32        (e)  If  the  employee in any month receives compensation
33    from gainful employment which is more than 25% of  the  final
34    rate  of earnings on which his disability benefits are based,
 
                            -13-               LRB9102930EGfg
 1    the temporary disability benefit payable for that month shall
 2    be reduced by an amount equal to such excess.
 3        (f)  An employee who has been disabled for  at  least  30
 4    days may return to work for the employer on a part-time basis
 5    for  a  trial work period of up to one year, during which the
 6    disability shall be deemed to continue.  Service credit shall
 7    continue to accrue and the disability benefit shall  continue
 8    to  be  paid  during  the  trial work period, but the benefit
 9    shall be reduced by the amount of earnings  received  by  the
10    disabled  employee.   Return  to service on a full-time basis
11    shall terminate the trial work period.  The  reduction  under
12    this  subsection  (f)  shall  be in lieu of the reduction, if
13    any, required under subsection (e).
14        (g)  Beginning January 1, 1988, every total and permanent
15    disability benefit shall be increased by 3% of  the  original
16    amount  of  the  benefit,  not  compounded, on each January 1
17    following the later of (1) the date the total  and  permanent
18    disability  benefit  begins,  or  (2)  the date the total and
19    permanent disability benefit would have begun if the employee
20    had been paid a temporary disability benefit for 30 months.
21    (Source: P.A. 87-740.)

22        (40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156)
23        Sec. 7-156.  Surviving spouse annuities - amount.
24        (a)  The amount of surviving spouse annuity shall be:
25             (1).  Upon the death of  an  employee  annuitant  or
26        such  person  entitled, upon application, to a retirement
27        annuity at date of death, (i) an amount equal to  1/2  of
28        the  retirement  annuity  which  was  or  would have been
29        payable exclusive of the  amount  so  payable  which  was
30        provided  from  additional  credits, and disregarding any
31        election made under paragraph (b) of Section 7-142,  plus
32        (ii)  an  annuity  which  could  be  provided at the then
33        attained age of the surviving spouse and under  actuarial
 
                            -14-               LRB9102930EGfg
 1        tables  then in effect, from the excess of the additional
 2        credits, (excluding any such credits  used  to  create  a
 3        reversionary annuity) used to provide the annuity granted
 4        pursuant  to  paragraph  (a)(2)  of Section 7-142 of this
 5        article over the total  annuity  payments  made  pursuant
 6        thereto.
 7             (2).  Upon  the death of a participating employee on
 8        or after attainment of age 55, an amount equal to 1/2  of
 9        the  retirement annuity which he could have had as of the
10        date of  death  had  he  then  retired  and  applied  for
11        annuity,  exclusive  of  the  portion thereof which could
12        have  been  provided   from   additional   credits,   and
13        disregarding  paragraph  (b)  of  Section  7-142, plus an
14        amount equal to the annuity which could be provided  from
15        the  total  of his accumulated additional credits at date
16        of death, on  the  basis  of  the  attained  age  of  the
17        surviving spouse on such date.
18             (3).  Upon  the  death  of  a participating employee
19        before age 55, an amount equal to 1/2 of  the  retirement
20        annuity which he could have had as of his attained age on
21        the  date  of  death, had he then retired and applied for
22        annuity, and the provisions of this Article that no  such
23        annuity  shall  begin  until the employee has attained at
24        least age  55  were  not  applicable,  exclusive  of  the
25        portion  thereof  which  could  have  been  provided from
26        additional credits  and  disregarding  paragraph  (b)  of
27        Section  7-142, plus an amount equal to the annuity which
28        could be provided  from  the  total  of  his  accumulated
29        additional  credits at date of death, on the basis of the
30        attained age of the surviving spouse on such date.
31        If a surviving spouse is more than 5 years  younger  than
32    the  deceased, that portion of the annuity which is not based
33    on additional credits shall be reduced in the  ratio  of  the
34    value  of  a life annuity of $1 per year at an age of 5 years
 
                            -15-               LRB9102930EGfg
 1    less than the attained age of the deceased, at the earlier of
 2    the date of the death or  the  date  his  retirement  annuity
 3    begins,  to the value of a life annuity of $1 per year at the
 4    attained age of the surviving spouse on such date,  according
 5    to actuarial tables approved by the Board.
 6        In  computing  the  amount of a surviving spouse annuity,
 7    incremental increases of retirement annuities to the date  of
 8    death of the employee annuitant shall be considered.
 9        (b)  Each  surviving spouse annuity payable on January 1,
10    1988 shall be increased on that date by 3%  of  the  original
11    amount  of  the  annuity.  Each surviving spouse annuity that
12    begins after January  1,  1988  shall  be  increased  on  the
13    January  1  next  occurring  after  the annuity begins, by an
14    amount equal to (i) 3% of the original amount thereof if  the
15    deceased  employee  was receiving a retirement annuity at the
16    time of his death; otherwise  (ii)  0.167%  of  the  original
17    amount  thereof  for  each  complete  month which has elapsed
18    since the date the annuity began.  However, if the death of a
19    retirement annuitant occurs in the  month  of  December,  the
20    initial  increase  under  this  subsection shall be effective
21    with the first payment of the surviving  spouse  annuity;  in
22    this  case, references in this Article to the original amount
23    of the surviving spouse annuity shall be deemed to  refer  to
24    the  calculated  amount  of  the annuity before the immediate
25    increase was applied.
26        On each January 1 after the date of the initial  increase
27    under this subsection, each surviving spouse annuity shall be
28    increased  by  3%  of  the  originally  granted amount of the
29    annuity.
30        The change in this subsection made by this amendatory Act
31    of the 91st General Assembly applies to deaths  occurring  on
32    or  after  December  1,  2001,  without regard to whether the
33    deceased employee was in service on or  after  the  effective
34    date of this amendatory Act.
 
                            -16-               LRB9102930EGfg
 1    (Source: P.A. 85-941.)

 2        (40 ILCS 5/7-157) (from Ch. 108 1/2, par. 7-157)
 3        Sec.  7-157.  Surviving  spouse  annuities  - marriage to
 4    terminate.
 5        (a)  If any surviving  spouse  annuitant  marries  before
 6    January  1,  2001  and,  before  reaching age 55, the annuity
 7    shall be terminated as of  the  end  of  the  calendar  month
 8    following the month in which the marriage occurs.
 9        (b)  Subsection  (a) does not apply to a surviving spouse
10    who remarries after December 31, 2000.
11    (Source: P.A. 81-618.)

12        (40 ILCS 5/7-158) (from Ch. 108 1/2, par. 7-158)
13        Sec. 7-158.  Surviving spouse annuities  -  Options.   In
14    lieu  of  the  surviving spouse annuity an eligible surviving
15    spouse shall have the option of receiving other  benefits  as
16    follows:
17        1.  The  surviving spouse of a participating employee may
18    elect to receive either a  single  sum  death  benefit  or  a
19    surviving  spouse annuity and the $5,000 $3,000 death benefit
20    provided in Sections 7-163 and 7-164.
21        2.  The  surviving  spouse  of  an  employee,   who   has
22    separated  from  service  and  would  have been entitled to a
23    retirement annuity on date of death,  may  elect  to  receive
24    either  a  single  sum  death  benefit  or a surviving spouse
25    annuity and the  $5,000  $3,000  death  benefit  provided  in
26    Sections 7-163 and 7-164.
27        3.  If  any  surviving spouse annuity is payable prior to
28    the earliest age at which the recipient will become  eligible
29    for  a  widows'  or  widowers'  insurance  benefit  under the
30    Federal Social Security Act, the recipient may elect that the
31    annuity payments from this fund shall  exceed  those  payable
32    after  attaining  such  age by an amount not in excess of the
 
                            -17-               LRB9102930EGfg
 1    estimated Social  Security  Benefit,  determined  as  of  the
 2    effective date of the surviving spouse annuity, provided that
 3    in no case shall the total annuity payments made by this fund
 4    exceed  in  actuarial value the annuity which would have been
 5    paid had no such election been made.
 6        4.  The surviving spouse  of  a  participating  employee,
 7    whose annuity was suspended upon return to employment and who
 8    had  one  year or more of service after his return, may apply
 9    the additional service credits to  a  supplemental  surviving
10    spouse annuity and receive the $5,000 $3,000 death benefit or
11    apply  the  additional  service credits to a single sum death
12    benefit and forego the $5,000 $3,000  death  benefit  payable
13    upon the death of an annuitant.
14        5.  The  surviving  spouse  of  a participating employee,
15    whose annuity was suspended upon return to employment and who
16    had less than one year of service  after  his  return,  shall
17    have   the  additional  service  credits  applied  towards  a
18    supplemental surviving spouse annuity and shall  receive  the
19    $5,000 $3,000 death benefit.
20    (Source: P.A. 85-941.)

21        (40 ILCS 5/7-164) (from Ch. 108 1/2, par. 7-164)
22        Sec.  7-164.  Death benefits - Amount.  The amount of the
23    death benefit shall be:
24        1.  Upon the death of an employee with at least one  year
25    of  service  occurring  while  in  an employment relationship
26    (including employees  drawing  disability  benefits)  with  a
27    participating  municipality or participating instrumentality,
28    an amount equal to the sum of:
29             (a)  The employee's normal, additional and  survivor
30        credits,  including interest credited thereto through the
31        end of the preceding calendar year, but excluding credits
32        and interest thereon allowed for periods of disability.
33             (b)  An amount equal to the employee's annual  final
 
                            -18-               LRB9102930EGfg
 1        rate  of  earnings.   An employee who dies as a result of
 2        injuries connected with his duties shall be considered to
 3        have a year of service for purposes of this benefit.
 4        2.  Upon the death of an employee with less  than  one  1
 5    year  of  service  occurring  while  in  the  service  of any
 6    participating  municipality  or  instrumentality,  an  amount
 7    equal to the sum of his accumulated  normal,  additional  and
 8    survivor  credits  on  the  date  of  death,  excluding those
 9    credits  and  interest  thereon  allowed  during  periods  of
10    disability.
11        3.  Upon the death of an employee who has separated  from
12    service  and  was not entitled to a retirement annuity on the
13    date of death, an amount equal to the sum of his  accumulated
14    normal,  survivor and additional credits on the date of death
15    excluding those credits and interest thereon  allowed  during
16    periods of disability.
17        4.  Upon  the  death  of  an  employee  in  an employment
18    relationship, or an employee who has service and was entitled
19    to a  retirement  annuity  on  the  date  of  death,  when  a
20    surviving spouse or child annuity is awarded, $5,000 $3,000.
21        5.  Upon the death of an employee, who has separated from
22    service  and was entitled to a retirement annuity on the date
23    of death,  and  no  surviving  spouse  or  child  annuity  is
24    awarded,   $5,000   $3,000   plus  an  amount  equal  to  his
25    accumulated normal, survivor and additional  credits  on  the
26    date  of  death,  excluding those credits and interest earned
27    thereon allowed during periods of disability.
28        6.  Upon the  death  of  an  employee  annuitant,  $5,000
29    $3,000  and, unless a surviving spouse, child or reversionary
30    annuity is payable, the sum of (i) the excess of  the  normal
31    and  survivor credits, excluding those allowed during periods
32    of disability, which the annuitant had as  of  the  effective
33    date of his annuity over the total annuities paid pursuant to
34    paragraph  (a)  1 of Section 7-142 to the date of death, plus
 
                            -19-               LRB9102930EGfg
 1    (ii) the excess of the additional credits, excluding any such
 2    credits used  to  create  a  reversionary  annuity,  used  to
 3    provide  the  annuity  granted pursuant to paragraph (a) 2 of
 4    Section 7-142 over the total annuity payments  made  pursuant
 5    thereto to the time of death.
 6        7.  Upon   the   death   of   an  annuitant  receiving  a
 7    reversionary annuity or of a person designated to  receive  a
 8    reversionary annuity prior to the receipt of such annuity the
 9    sum  of  the  additional  credits  of the person creating the
10    reversionary annuity as of the  effective  date  of  his  own
11    retirement annuity over the reversionary annuity payments, if
12    any,  made  prior  to  the date of death of such annuitant or
13    person designated to receive the reversionary annuity.
14        8.  Upon  the  death  of   an   annuitant   receiving   a
15    beneficiary  annuity  which  was  effective before January 1,
16    1986, the excess of the  death  benefit  which  was  used  to
17    provide  the  annuity,  over  the sum of all annuity payments
18    made to the beneficiary.  Upon  the  death  of  an  annuitant
19    receiving  a beneficiary annuity effective January 1, 1986 or
20    thereafter, the sum of (i)  the  excess  of  the  normal  and
21    survivor  credits,  excluding those allowed during periods of
22    disability, which the annuitant had as of the effective  date
23    of  his  annuity  over  the  total annuities paid pursuant to
24    paragraph (c) of Section 7-165, to date of death,  plus  (ii)
25    the  excess  of  the  additional  credits, excluding any such
26    credits used  to  create  a  reversionary  annuity,  used  to
27    provide  the  annuity  granted  pursuant  to paragraph (d) of
28    Section 7-165 over the total annuity payments  made  pursuant
29    thereto to the time of death.
30        9.  Upon  the  marriage  prior to reaching age 55 (except
31    for a surviving spouse who remarries after December 31, 2000)
32     or death of a person receiving a surviving  spouse  annuity,
33    unless  a child annuity is payable, the sum of (i) the excess
34    of the normal and survivor credits, excluding  those  credits
 
                            -20-               LRB9102930EGfg
 1    and  interest  thereon  allowed during periods of disability,
 2    attributable to the employee at the  effective  date  of  the
 3    annuity  or date of death, whichever first occurred, over the
 4    total of all annuity payments attributable to paragraph (a) 1
 5    of Section 7-142 made to the  employee  or  surviving  spouse
 6    plus (ii) the excess of the additional credits, excluding any
 7    such credits used to create a reversionary annuity or used to
 8    provide  the  annuity  attributable  to  paragraph  (a)  2 of
 9    Section 7-142 over the total of such payments.
10        10.  Upon the marriage, death or attainment of age 18  of
11    a  child  receiving  a  child  annuity,  if  no  other  child
12    annuities  are  payable,  the  sum  of  (i) the excess of the
13    normal and  survivor  credits  excluding  those  credits  and
14    interest thereon allowed during periods of disability, of the
15    employee  at  the  effective  date  of the annuity or date of
16    death, whichever  first  occurred,  over  the  total  annuity
17    payments  attributable  to  paragraph  (a) 1 of Section 7-142
18    made to the employee, surviving spouse and children plus (ii)
19    the excess of the  additional  credits,  excluding  any  such
20    credits  used  to  create  a  reversionary  annuity,  used to
21    provide the  annuity  attributable  to  paragraph  (a)  2  of
22    Section  7-142  over  the  total annuity payments made to the
23    employee, surviving spouse and children, pursuant thereto.
24        11.  Upon the death of the participating  employee  whose
25    annuity was suspended upon his return to employment:
26             a.  If  a  surviving  spouse  or  child  annuity  is
27        awarded, $5,000 $3,000;
28             b.  If  no  surviving  spouse  or  child  annuity is
29        awarded and he had less  than  one  year's  service  upon
30        return,  $5,000  $3,000  plus  the  excess of the normal,
31        survivor  and  additional  credits,  including   interest
32        thereon,  but  excluding those allowed during a period of
33        disability,  at  the  effective  date  of  the  suspended
34        annuity, plus those allowed after his  return,  over  all
 
                            -21-               LRB9102930EGfg
 1        annuity payments made to the employee;
 2             c.  If  no  surviving  spouse  or  child  annuity is
 3        awarded and he has one  year  or  more  of  service  upon
 4        return,  the higher of (a) the payment under subparagraph
 5        b of this paragraph or (b) the payment under paragraph  1
 6        of  this  Section,  taking  into  consideration  only the
 7        service and credits allowed after his  return,  plus  the
 8        excess  of  the  normal, survivor and additional credits,
 9        including  interest  thereon,  excluding  those   allowed
10        during  periods  of  disability, at the effective date of
11        his suspended annuity over all annuity payments  made  to
12        the employee.
13        12.  The  $3,000  or  $5,000  death  benefit  provided in
14    paragraphs 4 and 6 shall not be payable to  beneficiaries  of
15    persons  who  terminated  service prior to September 8, 1971,
16    unless the payment  or  agreement  for  payment  provided  by
17    Section  7-144.2 of this Article is made prior to the date of
18    death.
19        13.  The increase in certain death benefits  from  $1,000
20    to $3,000 provided by this amendatory Act of 1987 shall apply
21    only to deaths occurring on or after January 1, 1988.
22        The  increase  in  certain  death benefits from $3,000 to
23    $5,000 provided by this amendatory Act of  the  91st  General
24    Assembly  applies  to  deaths  that  occur  on  or  after the
25    effective date of this  amendatory  Act,  without  regard  to
26    whether  the  deceased person was in service on or after that
27    date.
28    (Source: P.A. 85-941.)

29        (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
30        Sec.    7-172.     Contributions     by     participating
31    municipalities and participating instrumentalities.
32        (a)  Each    participating    municipality    and    each
33    participating  instrumentality shall make payment to the fund
 
                            -22-               LRB9102930EGfg
 1    as follows:
 2             1.  municipality   contributions   in   an    amount
 3        determined by applying the municipality contribution rate
 4        to   each  payment  of  earnings  paid  to  each  of  its
 5        participating employees;
 6             2.  an amount equal to  the  employee  contributions
 7        provided  by  paragraphs  (a)  and  (b) of Section 7-173,
 8        whether or not the employee contributions are withheld as
 9        permitted by that Section;
10             3.  all accounts receivable, together with  interest
11        charged thereon, as provided in Section 7-209;
12             4.  if   it  has  no  participating  employees  with
13        current earnings, an amount payable which, over a  period
14        of 20 years beginning with the year following an award of
15        benefit,  will  amortize,  at the effective rate for that
16        year, any negative balance in  its  municipality  reserve
17        resulting  from  the award.  This amount when established
18        will be payable as a separate contribution whether or not
19        it later has participating employees.
20        (b)  A separate municipality contribution rate  shall  be
21    determined  for  each  calendar  year  for  all participating
22    municipalities together with all  instrumentalities  thereof.
23    The  municipality  contribution  rate shall be determined for
24    participating instrumentalities as if they were participating
25    municipalities.  The municipality contribution rate shall  be
26    the sum of the following percentages:
27             1.  The   percentage   of   earnings   of   all  the
28        participating    employees    of    all     participating
29        municipalities and participating instrumentalities which,
30        if  paid over the entire period of their service, will be
31        sufficient when combined with all employee  contributions
32        available  for  the  payment  of benefits, to provide all
33        annuities for participating  employees,  and  the  $5,000
34        $3,000  death  benefit  payable  under Sections 7-158 and
 
                            -23-               LRB9102930EGfg
 1        7-164, such percentage to be known  as  the  normal  cost
 2        rate.
 3             2.  The  percentage of earnings of the participating
 4        employees  of   each   participating   municipality   and
 5        participating  instrumentalities  necessary to adjust for
 6        the difference between the present value of all benefits,
 7        excluding temporary and total  and  permanent  disability
 8        and  death benefits, to be provided for its participating
 9        employees and the sum  of  its  accumulated  municipality
10        contributions  and the accumulated employee contributions
11        and the present value of  expected  future  employee  and
12        municipality  contributions pursuant to subparagraph 1 of
13        this paragraph (b).  This adjustment shall be spread over
14        the remainder of the period of 40 years from the first of
15        the year following the date of determination.
16             3.  The percentage of earnings of the  participating
17        employees   of   all   municipalities  and  participating
18        instrumentalities necessary to provide the present  value
19        of  all  temporary  and  total  and  permanent disability
20        benefits granted during the most recent  year  for  which
21        information is available.
22             4.  The  percentage of earnings of the participating
23        employees  of  all   participating   municipalities   and
24        participating  instrumentalities necessary to provide the
25        present value  of  the  net  single  sum  death  benefits
26        expected  to  become payable from the reserve established
27        under Section 7-206 during the year for which  this  rate
28        is fixed.
29             5.  The percentage of earnings necessary to meet any
30        deficiency   arising   in   the  Terminated  Municipality
31        Reserve.
32        (c)  A separate municipality contribution rate  shall  be
33    computed for each participating municipality or participating
34    instrumentality for its sheriff's law enforcement employees.
 
                            -24-               LRB9102930EGfg
 1        A   separate  municipality  contribution  rate  shall  be
 2    computed for the sheriff's law enforcement employees of  each
 3    forest  preserve district that elects to have such employees.
 4    For the period from January 1, 1986  to  December  31,  1986,
 5    such  rate  shall  be  the forest preserve district's regular
 6    rate plus 2%.
 7        In the event that the Board determines that there  is  an
 8    actuarial  deficiency in the account of any municipality with
 9    respect to a person who has elected  to  participate  in  the
10    Fund under Section 3-109.1 of this Code, the Board may adjust
11    the  municipality's  contribution  rate so as to make up that
12    deficiency over such reasonable period of time as  the  Board
13    may determine.
14        (d)  The  Board  may  establish  a  separate municipality
15    contribution  rate  for  all  employees   who   are   program
16    participants   employed   under   the  Federal  Comprehensive
17    Employment  Training  Act  by  all   of   the   participating
18    municipalities  and  instrumentalities.   The  Board may also
19    provide that, in lieu of a  separate  municipality  rate  for
20    these  employees, a portion of the municipality contributions
21    for such program participants shall be refunded or  an  extra
22    charge   assessed   so   that   the  amount  of  municipality
23    contributions retained or received by the fund for  all  CETA
24    program  participants  shall be an amount equal to that which
25    would be provided by the separate  municipality  contribution
26    rate  for  all  such  program participants.  Refunds shall be
27    made to prime sponsors of programs upon submission of a claim
28    therefor and extra charges shall be assessed to participating
29    municipalities and instrumentalities.   In  establishing  the
30    municipality  contribution  rate as provided in paragraph (b)
31    of  this  Section,  the  use  of  a   separate   municipality
32    contribution rate for program participants or the refund of a
33    portion  of  the  municipality contributions, as the case may
34    be, may be considered.
 
                            -25-               LRB9102930EGfg
 1        (e)  Computations of municipality contribution rates  for
 2    the  following  calendar  year  shall  be  made  prior to the
 3    beginning of each year, from the information available at the
 4    time the computations are made, and on  the  assumption  that
 5    the   employees   in   each   participating  municipality  or
 6    participating instrumentality at such time will  continue  in
 7    service  until  the  end  of  such  calendar  year  at  their
 8    respective rates of earnings at such time.
 9        (f)  Any  municipality  which  is  the recipient of State
10    allocations representing  that  municipality's  contributions
11    for retirement annuity purposes on behalf of its employees as
12    provided  in Section 12-21.16 of the Illinois Public Aid Code
13    shall pay the allocations so received to the Board  for  such
14    purpose.   Estimates  of  State  allocations  to  be received
15    during  any  taxable  year  shall  be   considered   in   the
16    determination  of  the  municipality's tax rate for that year
17    under Section 7-171.   If  a  special  tax  is  levied  under
18    Section  7-171, none of the proceeds may be used to reimburse
19    the municipality for the amount of State allocations received
20    and paid to the Board.  Any multiple-county  or  consolidated
21    health  department which receives contributions from a county
22    under Section 11.2 of "An Act in  relation  to  establishment
23    and   maintenance   of   county  and  multiple-county  health
24    departments",  approved  July  9,  1943,   as   amended,   or
25    distributions  under  Section  3  of the Department of Public
26    Health  Act,  shall   use   these   only   for   municipality
27    contributions by the health department.
28        (g)  Municipality  contributions for the several purposes
29    specified shall, for township treasurers and employees in the
30    offices of the township treasurers who  meet  the  qualifying
31    conditions  for  coverage  hereunder,  be allocated among the
32    several  school  districts  and  parts  of  school  districts
33    serviced by such treasurers and employees in  the  proportion
34    which  the amount of school funds of each district or part of
 
                            -26-               LRB9102930EGfg
 1    a district handled by the treasurer bears to the total amount
 2    of all school funds handled by the treasurer.
 3        From the funds subject to allocation among districts  and
 4    parts  of districts pursuant to the School Code, the trustees
 5    shall withhold the proportionate share of the  liability  for
 6    municipality  contributions  imposed  upon  such districts by
 7    this Section, in respect  to  such  township  treasurers  and
 8    employees and remit the same to the Board.
 9        The  municipality  contribution  rate  for an educational
10    service center shall initially be the same rate for each year
11    as the regional office of education or school district  which
12    serves  as  its  administrative  agent.   When actuarial data
13    become available, a separate rate  shall  be  established  as
14    provided in subparagraph (i) of this Section.
15        The  municipality  contribution rate for a public agency,
16    other than a vocational education cooperative,  formed  under
17    the  Intergovernmental Cooperation Act shall initially be the
18    average rate for the municipalities which are parties to  the
19    intergovernmental  agreement.   When  actuarial  data  become
20    available,  a  separate rate shall be established as provided
21    in subparagraph (i) of this Section.
22        (h)  Each participating  municipality  and  participating
23    instrumentality  shall  make the contributions in the amounts
24    provided in this Section in the manner prescribed  from  time
25    to  time  by  the  Board  and all such contributions shall be
26    obligations of the  respective  participating  municipalities
27    and   participating  instrumentalities  to  this  fund.   The
28    failure  to  deduct  any  employee  contributions  shall  not
29    relieve  the  participating  municipality  or   participating
30    instrumentality  of  its obligation to this fund.  Delinquent
31    payments of contributions due under this  Section  may,  with
32    interest,   be   recovered   by   civil  action  against  the
33    participating      municipalities      or       participating
34    instrumentalities.   Municipality  contributions,  other than
 
                            -27-               LRB9102930EGfg
 1    the amount necessary for employee  contributions  and  Social
 2    Security  contributions,  for periods of service by employees
 3    from whose earnings no  deductions  were  made  for  employee
 4    contributions to the fund, may be charged to the municipality
 5    reserve     for    the    municipality    or    participating
 6    instrumentality.
 7        (i)  Contributions  by  participating   instrumentalities
 8    shall  be  determined  as  provided  herein  except  that the
 9    percentage derived under subparagraph 2 of paragraph  (b)  of
10    this  Section, and the amount payable under subparagraph 5 of
11    paragraph  (a)  of  this  Section,  shall  be  based  on   an
12    amortization period of 10 years.
13    (Source: P.A. 90-448, eff. 8-16-97.)

14        (40 ILCS 5/7-205) (from Ch. 108 1/2, par. 7-205)
15        Sec. 7-205. Reserves for annuities.  Appropriate reserves
16    shall  be  created for payment of all annuities granted under
17    this Article at the time such annuities are  granted  and  in
18    amounts  determined  to  be  necessary under actuarial tables
19    adopted by the Board upon recommendation of  the  actuary  of
20    the  fund.    All  annuities  payable shall be charged to the
21    annuity reserve.
22        1.  Amounts credited to annuity reserves shall be derived
23    by transfer of all the employee credits from the  appropriate
24    employee  reserves and by charges to the municipality reserve
25    of those municipalities in which the  retiring  employee  has
26    accumulated  service.  If a retiring employee has accumulated
27    service  in  more  than  one  participating  municipality  or
28    participating instrumentality, aggregate municipality charges
29    shall be prorated on a basis of the  employee's  earnings  in
30    case  of  concurrent  service and creditable service in other
31    cases.
32        2.  Supplemental annuities shall be handled as a separate
33    annuity and amounts to be credited  to  the  annuity  reserve
 
                            -28-               LRB9102930EGfg
 1    therefor  shall  be  derived  in the same manner as a regular
 2    annuity.
 3        3.  When a retirement annuity is granted to  an  employee
 4    with  a spouse eligible for a surviving spouse annuity, there
 5    shall be credited to the annuity reserve an  amount  to  fund
 6    the  cost of both the retirement and surviving spouse annuity
 7    as a joint and survivors annuity.
 8        4.  Beginning January 1, 1989, when a retirement  annuity
 9    is  awarded,  an  amount  equal  to  the present value of the
10    $3,000 or $5,000 death benefit payable upon the death of  the
11    annuitant  shall  be  transferred to the annuity reserve from
12    the appropriate municipality reserves in the same  manner  as
13    the transfer for annuities.
14        5.  All annuity reserves shall be revalued annually as of
15    December  31.   Beginning as of December 31, 1973, adjustment
16    required therein by such  revaluation  shall  be  charged  or
17    credited to the earnings and experience variation reserve.
18        6.  There shall be credited to the annuity reserve all of
19    the  payments  made by annuitants under Section 7-144.2, plus
20    an  additional  amount  from  the  earnings  and   experience
21    variation  reserve  to  fund  the  cost  of  the  incremental
22    annuities granted to annuitants making these payments.
23        7.  As  of  December  31, 1972, the excess in the annuity
24    reserve shall be transferred to  the  municipality  reserves.
25    An   amount  equal  to  the  deficiency  in  the  reserve  of
26    participating      municipalities      and      participating
27    instrumentalities which have no participating employees shall
28    be allocated to  their  reserves.   The  remainder  shall  be
29    allocated  in  amounts proportionate to the present value, as
30    of January  1,  1972,  of  annuities  of  annuitants  of  the
31    remaining   participating  municipalities  and  participating
32    instrumentalities.
33    (Source: P.A. 89-136, eff. 7-14-95.)
 
                            -29-               LRB9102930EGfg
 1        (40 ILCS 5/7-206) (from Ch. 108 1/2, par. 7-206)
 2        Sec. 7-206.  Death Reserve.  All death  benefit  payments
 3    shall be charged to the Death Reserve, other than the $3,000
 4    or  $5,000  death  benefits paid after December 31, 1988 upon
 5    the death of  an  annuitant.   All  contributions  for  death
 6    purposes  under  Section  7-172(b)4  shall be credited to the
 7    same reserve.  Whenever the balance in such  reserve  at  the
 8    close of a year exceeds 100% of the average annual charges to
 9    this account during the 3 preceding calendar years, the basic
10    actuarial  assumptions  upon  which municipality contribution
11    rates for these purposes are based,  shall  be  reviewed  and
12    revised  in such manner as is deemed necessary to reduce such
13    balance.
14    (Source: P.A. 89-136, eff. 7-14-95.)

15        Section 90.  The State Mandates Act is amended by  adding
16    Section 8.23 as follows:

17        (30 ILCS 805/8.23 new)
18        Sec.  8.23.  Exempt  mandate.  Notwithstanding Sections 6
19    and 8 of this Act, no reimbursement by the State is  required
20    for  the  implementation  of  any  mandate  created  by  this
21    amendatory Act of the 91st General Assembly.

22        Section  99.  Effective  date.   This  Act  takes  effect
23    January 1, 2001.

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