State of Illinois
91st General Assembly
Legislation

   [ Search ]   [ Legislation ]
[ Home ]   [ Back ]   [ Bottom ]



91_HB4339

 
                                              LRB9111503EGfgB

 1        AN  ACT  to amend the Illinois Pension Code and the State
 2    Mandates Act.

 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 13-213,  13-302,  13-303,  13-304,  13-306,
 7    13-314, and 13-603 as follows:

 8        (40 ILCS 5/13-213) (from Ch. 108 1/2, par. 13-213)
 9        Sec. 13-213.  "Contributions": Any moneys paid or payable
10    to  into  the Fund by the District or by any employee, or any
11    salary deduction hereunder.
12    (Source: P.A. 87-794.)

13        (40 ILCS 5/13-302) (from Ch. 108 1/2, par. 13-302)
14        Sec. 13-302.  Computation of retirement annuity.
15        (a)  Computation of annuity.  An employee  who  withdraws
16    from service on or after July 1, 1989 and who has met the age
17    and service requirements and other conditions for eligibility
18    set  forth  in  Section 13-301 of this Article is entitled to
19    receive a retirement  annuity  for  life  equal  to  2.2%  of
20    average  final  salary  for  each  of  the  first 20 years of
21    service, and 2.4% of average final salary for  each  year  of
22    service  in  excess  of 20.  The retirement annuity shall not
23    exceed 80% of average final salary.
24        (b)  Early retirement discount.  If an  employee  retires
25    prior  to  attainment  of  age  60 with less than 30 years of
26    service, the annuity computed above shall be reduced  by  1/2
27    of 1% for each full month between the date the annuity begins
28    and  attainment  of  age  60, or each full month by which the
29    employee's service is less than 30 years, whichever is less.
30    However, where the employee first enters service  after  June
 
                            -2-               LRB9111503EGfgB
 1    13,  1997  the  effective date of this amendatory Act of 1997
 2    and does not have at least 10 years of service  exclusive  of
 3    credit  under Article 20, the annuity computed above shall be
 4    reduced by 1/2 of 1% for each full month between the date the
 5    annuity begins and attainment of age 60.
 6        (c)  (Blank).  Early  retirement  without  discount.   An
 7    employee  who  has attained age 50 and retires after December
 8    31, 1987 and before June 30, 1997, and who retires  within  6
 9    months  of  the  last  day for which retirement contributions
10    were required, may elect at the time of application to make a
11    one-time employee contribution to the Fund and thereby  avoid
12    the  early  retirement reduction specified in subsection (b).
13    The exercise of the election shall also obligate the employer
14    to make a one-time nonrefundable contribution to the Fund.
15        The one-time employee and employer contributions shall be
16    a percentage of the retiring employee's last full-time annual
17    salary, calculated as the total amount paid during  the  last
18    260 work days immediately prior to the date of withdrawal, or
19    if  not full-time then the full time equivalent, and based on
20    the employee's age and service at retirement.   The  employee
21    contribution rate shall be 7% multiplied by the lesser of the
22    following  2  numbers:  (1)  the  number of years, or portion
23    thereof, that the employee is less than age 60;  or  (2)  the
24    number  of  years,  or  portion  thereof, that the employee's
25    service is less than 30  years.   The  employer  contribution
26    shall  be  at  the  rate  of  20%  for  each year, or portion
27    thereof, that the participant is less than age 60.
28        Upon  receipt  of  the  application,  the   Board   shall
29    determine    the    corresponding   employee   and   employer
30    contributions.  The annuity shall not be payable  under  this
31    subsection  until  both  the required contributions have been
32    received by the Fund.  However, the  date  the  contributions
33    are  received  shall  not  be  considered  in determining the
34    effective date of retirement.
 
                            -3-               LRB9111503EGfgB
 1        The number of employees who may retire under this Section
 2    in any year may be limited at the option of the District to a
 3    specified percentage of those eligible, not lower  than  30%,
 4    with  the  right  to  participate to be allocated among those
 5    applying on the basis of seniority  in  the  service  of  the
 6    employer.
 7        An   employee   who   has   terminated   employment   and
 8    subsequently re-enters service shall not be entitled to early
 9    retirement  without discount under this subsection unless the
10    employee continues in service for  at  least  4  years  after
11    re-entry.
12        (c-1)  Early   retirement  without  discount;  retirement
13    after June 29, 1997.  An employee who (i) has attained age 55
14    (age 50 if the employee first entered service before June 13,
15    1997) the effective date of this  amendatory  Act  of  1997),
16    (ii)  has  at  least  10 years of service exclusive of credit
17    under Article 20, (iii)  retires  after  June  29,  1997  and
18    before January 1, 2008 2003, and (iv) retires within 6 months
19    of the last day for which retirement annuity contributions as
20    defined in Section 13-502 were required or within 6 months of
21    the  last  date  for which disability payments were provided,
22    may elect at the time of application to make  an  a  one-time
23    employee contribution to the Fund and thereby avoid the early
24    retirement   reduction  specified  in  subsection  (b).   The
25    exercise of the election shall also obligate the employer  to
26    make  a  one-time nonrefundable contribution to the Fund upon
27    the employee's retirement.
28        The one-time employee and employer contributions shall be
29    a percentage of the  retiring  employee's  highest  full-time
30    annual  salary,  calculated  as  the  total  amount of salary
31    included in the highest 26 consecutive pay periods as used in
32    the average  final  salary  calculation,  and  based  on  the
33    employee's  age and service at retirement.  The employee rate
34    shall be 7% multiplied by  the  lesser  of  the  following  2
 
                            -4-               LRB9111503EGfgB
 1    numbers:  (1)  the  number of years, or portion thereof, that
 2    the employee is less than age 60; or (2) the number of years,
 3    or portion thereof, that the employee's service is less  than
 4    30  years.  The employer contribution shall be at the rate of
 5    20% for each year, or portion thereof, that  the  participant
 6    is less than age 60.
 7        Upon  receipt  of  the  application, the Board may make a
 8    preliminary determination of the required shall determine the
 9    corresponding employee and employer contributions; the  final
10    determination  of  these amounts shall be made as of the date
11    of retirement.  An employee may elect to  make  the  employee
12    contribution   required   under   this   subsection   through
13    pre-retirement  contributions, post-retirement contributions,
14    or a combination of both.  The  employee's  specific  payment
15    plan  is  subject  to  the  Fund's  approval  and  must be in
16    compliance  with  the   Fund's   established   administrative
17    procedures  and  policies.   The annuity shall not be payable
18    under this subsection until both the  required  contributions
19    have  been  received  by  the  Fund,  unless the employee has
20    elected to make post-retirement contributions.  However,  the
21    date  the  contributions are received shall not be considered
22    in determining the effective date of retirement.
23        Pre-retirement  contributions  shall  accumulate  without
24    interest and may commence no earlier than  36  months  before
25    the   employee   is   eligible  to  retire.    Pre-retirement
26    contributions may be paid either directly to the Fund  or  on
27    the same basis and under the same conditions as contributions
28    required   under   Section   13-502.   If,  at  the  time  of
29    retirement, the employee is  ineligible  or  the  option  for
30    early   retirement   without   discount   has   expired,  the
31    contributions paid by  the  employee  under  this  subsection
32    shall be refunded, without interest.
33        Post-retirement  contributions made within 6 months after
34    retirement and before commencement of  annuity  payments  are
 
                            -5-               LRB9111503EGfgB
 1    not subject to interest.  Other post-retirement contributions
 2    shall  include  interest  at  a  rate  equal  to  the  Fund's
 3    actuarial  investment  return assumption utilized in the most
 4    recent Annual Actuarial Statement, computed from the date  of
 5    retirement  to  the  date  of payment, and must be fully paid
 6    within 36 months after retirement.   In  the  event  that  an
 7    employee  who  elects  to  make post-retirement contributions
 8    dies before making payment in full, the Fund may recover  the
 9    additional  amounts  due from any subsequent annuity payment,
10    survivor annuity, or refund.
11        The number of employees who may retire under this Section
12    in any year may be limited at the option of the District to a
13    specified percentage of those eligible, not lower  than  30%,
14    with  the  right  to  participate to be allocated among those
15    applying on the basis of seniority  in  the  service  of  the
16    employer.
17        An   employee   who   has   terminated   employment   and
18    subsequently re-enters service shall not be entitled to early
19    retirement  without discount under this subsection unless the
20    employee continues in service for  at  least  4  years  after
21    re-entry.
22        (d)  Annual  increase.  Except for employees retiring and
23    receiving a term annuity, an employee who retires on or after
24    July 1, 1985 but before the effective date of this amendatory
25    Act of the  91st  General  Assembly  shall,  upon  the  first
26    payment  date  following the first anniversary of the date of
27    retirement, have the monthly annuity increased by 3%  of  the
28    amount   of   the  monthly  annuity  fixed  at  the  date  of
29    retirement.  Except for employees retiring  and  receiving  a
30    term  annuity,  an  employee  who  retires  on  or  after the
31    effective date of this amendatory Act  of  the  91st  General
32    Assembly  shall,  on  the first day of the month in which the
33    first anniversary of the date of retirement occurs, have  the
34    monthly  annuity increased by 3% of the amount of the monthly
 
                            -6-               LRB9111503EGfgB
 1    annuity fixed at the date of retirement.  The monthly annuity
 2    shall be increased by an additional 3% on the same date  each
 3    year  thereafter.   Beginning  January  1,  1993,  all annual
 4    increases payable under this subsection (or  any  predecessor
 5    provision,  regardless  of  the  date of retirement) shall be
 6    calculated at the rate of 3% of the monthly  annuity  payable
 7    at   the  time  of  the  increase,  including  any  increases
 8    previously granted under this Article.
 9        Any employee who (i) retired before July 1, 1985 with  at
10    least  10  years  of  creditable service, (ii) is receiving a
11    retirement annuity under this  Article,  other  than  a  term
12    annuity, and (iii) has not received any annual increase under
13    this  subsection,  shall begin receiving the annual increases
14    provided under this subsection  (d)  beginning  on  the  next
15    annuity  payment  date  following  the effective date of this
16    amendatory Act of 1997.
17        (e)  Minimum retirement annuity.   Beginning  January  1,
18    1993,  the  minimum  monthly retirement annuity shall be $500
19    for any annuitant having at least 10 years of  service  under
20    this Article, other than a term annuitant or an annuitant who
21    began  receiving  the  annuity  before attaining age 60.  Any
22    such annuitant who is receiving a  monthly  annuity  of  less
23    than  $500  shall  have the annuity increased to $500 on that
24    date.
25        Beginning January 1, 1993, the minimum monthly retirement
26    annuity shall be $250 for any annuitant (other than a term or
27    reciprocal annuitant or an annuitant under subsection (d)  of
28    Section  13-301)  having  less than 10 years of service under
29    this Article, and  for  any  annuitant  (other  than  a  term
30    annuitant)  having  at  least  10 years of service under this
31    Article who began receiving the annuity before attaining  age
32    60.  Any such annuitant who is receiving a monthly annuity of
33    less  than  $250  shall have the annuity increased to $250 on
34    that date.
 
                            -7-               LRB9111503EGfgB
 1        Notwithstanding any other provision of  this  subsection,
 2    beginning  on  the  first  annuity payment date following the
 3    effective date of this amendatory Act  of  the  91st  General
 4    Assembly, an employee who retired before August 23, 1989 with
 5    at  least  10  years of service under this Article but before
 6    attaining  age  60  (regardless  of  whether  the  retirement
 7    annuity was subject to an early retirement discount) shall be
 8    entitled to the same minimum monthly retirement annuity under
 9    this subsection as an employee who retired with at  least  10
10    years  of  service under this Article and after attaining age
11    60.
12    (Source: P.A. 90-12, eff. 6-13-97.)

13        (40 ILCS 5/13-303) (from Ch. 108 1/2, par. 13-303)
14        Sec. 13-303.  Reversionary annuity.
15        (a)  An employee, prior to  retirement  on  annuity,  may
16    elect  a  lesser  amount  of  annuity  and  provide, with the
17    actuarial value  of  the  amount  by  which  his  annuity  is
18    reduced, a reversionary annuity for a wife, husband, parents,
19    children, brothers or sisters.  The election may be exercised
20    by  filing  a  written  designation  with  the Board prior to
21    retirement, and may be revoked by the employee  at  any  time
22    before  retirement.   The  death  of  the  employee  prior to
23    retirement shall automatically void the election.
24        (b)  The death of the designated  reversionary  annuitant
25    prior  to  the employee's retirement shall automatically void
26    the election, but, if death of  the  designated  reversionary
27    annuitant  occurs after retirement, the reduced annuity being
28    paid to the retired employee annuitant shall remain unchanged
29    and no reversionary annuity shall be payable.
30        No reversionary annuity shall be  paid  if  the  employee
31    dies  before  the  expiration  of  730 days from the date the
32    written designation was filed with the board, even though the
33    employee retired and was receiving a reduced annuity.
 
                            -8-               LRB9111503EGfgB
 1        (c)  An employee exercising this option shall not  reduce
 2    the  annuity  by  more  than  25%,  nor  elect  to  provide a
 3    reversionary annuity of less than $100 per  month.   No  such
 4    option  shall  be permitted if the reversionary annuity for a
 5    surviving  spouse,  when  added  to  the  surviving  spouse's
 6    annuity payable  under  this  Article,  exceeds  85%  of  the
 7    reduced annuity payable to the employee.
 8        (d)  A  reversionary  annuity  shall  begin  on  the  day
 9    following  the death of the annuitant, with the first payment
10    due and payable one month later, and shall  continue  monthly
11    thereafter until the death of the reversionary annuitant.
12        (e)  The   increases   in  annuity  provided  in  Section
13    13-302(d) shall, as to an  employee  so  electing  a  reduced
14    annuity,  relate  to  the amount of reduced annuity, and such
15    lesser amount shall constitute  the  annuity  on  which  such
16    increases shall be based.
17        (f)  For  determining  the  actuarial  value  under  this
18    option   of  the  employee's  annuity  and  the  reversionary
19    annuity, the Fund shall use an actuarial table recommended by
20    the Fund's actuarial consultant and approved by the Board  of
21    Trustees  the  following actuarial table shall be used: "1951
22    Group Annuity Male Table of Mortality," set back 5 years  for
23    employees, with 3% interest.
24    (Source: P.A. 87-794.)

25        (40 ILCS 5/13-304) (from Ch. 108 1/2, par. 13-304)
26        Sec.  13-304.  Optional  plan  of additional benefits and
27    contributions.
28        (a)  While this plan is in effect, an  eligible  employee
29    may  establish  additional  optional  credit  for  additional
30    benefits   by  electing  in  writing  at  any  time  to  make
31    additional  optional   contributions.    The   employee   may
32    discontinue  making  the additional optional contributions at
33    any time by notifying the Fund in writing.
 
                            -9-               LRB9111503EGfgB
 1        Employees first entering service after June 30, 1997  are
 2    not  eligible  to  participate  in the plan established under
 3    this Section.
 4        (b)  Additional optional contributions for the additional
 5    optional benefits shall be as follows:
 6             (1)  For contributions  on  current  salary  through
 7        December  31,  2004,  the  service  after  the  option is
 8        elected, an additional contribution  rate  is  of  3%  of
 9        salary.    Beginning  January  1,  2005,  the  additional
10        contribution  rate  is 3.1% of salary.  Beginning January
11        1, 2006, the additional  contribution  rate  is  3.2%  of
12        salary.    Beginning  January  1,  2007,  the  additional
13        contribution rate is 3.3% of salary.  These contributions
14        shall  be  paid contributed to the Fund on the same basis
15        and under the same conditions as  contributions  required
16        under Section 13-502.
17             (2)  For   contributions  on  past  service  through
18        December 31, 2004, the before the option is  elected,  an
19        additional  contribution  rate is of 3% of the salary for
20        the applicable period of service, plus  interest  at  the
21        annual  rate  as shall from time to time be determined by
22        the Board, compounded annually from the date  of  service
23        to  the  date of payment.  Beginning January 1, 2005, the
24        additional contribution rate  is  3.1%  of  salary,  plus
25        interest.   Beginning  January  1,  2006,  the additional
26        contribution rate  is  3.2%  of  salary,  plus  interest.
27        Beginning  January  1,  2007, the additional contribution
28        rate is 3.3% of  salary,  plus  interest.   The  interest
29        shall  be calculated at the annual rate from time to time
30        determined by the Board,  compounded  annually  from  the
31        date  of  service  to the date of payment.  Contributions
32        for service before the option is elected may be  made  in
33        lump  sum  payments to the Fund or by contributing to the
34        Fund on the same basis and under the same  conditions  as
 
                            -10-              LRB9111503EGfgB
 1        contributions   required  under  Section  13-502.     All
 2        payments for past service must be  paid  in  full  before
 3        credit is given.  A person who has withdrawn from service
 4        may  pay  the additional contribution for past service at
 5        any time within 30 days after withdrawal from service, so
 6        long as payment is made in  full  before  the  retirement
 7        annuity  commences.  No additional optional contributions
 8        may be made for any period of service  for  which  credit
 9        has  been previously forfeited by acceptance of a refund,
10        unless the refund is repaid in full with interest at  the
11        rate specified in Section 13-603, from the date of refund
12        to   the  date  of  repayment.   Nothing  herein  may  be
13        construed to allow an additional optional contribution to
14        be made on the account of a deceased employee.
15        (c)  Additional optional benefit  shall  accrue  for  all
16    periods    of   eligible   service   for   which   additional
17    contributions are paid in full.  The additional benefit shall
18    consist of an additional 1% of average final salary for  each
19    year  of  service  for which optional contributions have been
20    paid, to be added to the  employee's  retirement  annuity  as
21    otherwise  computed  under  this Article.  The calculation of
22    these additional benefits shall be subject to the same  terms
23    and  conditions  as  are  used  in  the  calculation  of  the
24    retirement   annuity  under  this  Article.   The  additional
25    benefit shall be included in the calculation of the automatic
26    annual increase in annuity under Section  13-302(d),  and  in
27    the   calculation   of   surviving   spouse's  annuity  where
28    applicable.  However, no additional benefits will be  granted
29    which  produce  a  total  annuity greater than the applicable
30    maximum established for that type of annuity in this Article.
31    The total additional optional benefit that  may  be  received
32    under this Section is 15% of average final salary.
33        (d)  Refunds  of  additional optional contributions shall
34    be made on the same basis and under the  same  conditions  as
 
                            -11-              LRB9111503EGfgB
 1    provided under Section 13-601.
 2        (e)  Optional  contributions  shall be accounted for in a
 3    separate Optional Contribution Reserve.
 4        (f)  The tax levy computed under Section 13-503 shall  be
 5    based  on  employee  contributions  including  the  amount of
 6    optional additional employee contributions.
 7        (g)  Service eligible under this Section may include only
 8    service as an employee as  defined  in  Section  13-204,  and
 9    subject  to  Section  13-401  and 13-402.  No service granted
10    under Section 13-801 or 13-802 shall be eligible for optional
11    service  credit.   No  optional   service   credit   may   be
12    established  for  any  military  service,  or for any service
13    under any other  Article  of  this  Code.   Optional  service
14    credit  may  be established for any period of disability paid
15    from this Fund, if the  employee  makes  additional  optional
16    contributions for such period of disability.
17        (h)  This  plan  of  optional  benefits and contributions
18    shall not apply to service prior to  withdrawal  rendered  by
19    any   former  employee  who  re-enters  service  unless  such
20    employee renders not  less  than  36  consecutive  months  of
21    additional service after the date of re-entry.
22        (i)  (Blank). The effective date of this optional plan of
23    additional  benefits and contributions shall be the date upon
24    which  approval  was  received  from  the  Internal   Revenue
25    Service, July 31, 1987.
26        (j)  This  plan  of additional benefits and contributions
27    shall  expire  December  31,  2007   2002.    No   additional
28    contributions  may be made after that date, and no additional
29    benefits will accrue after that date.
30        (k)  The maximum optional benefits for current and  prior
31    service  for  which  an  employee can make contributions in a
32    single year shall be limited to 15 years of service  in  1997
33    and before; 9 years of service in 1998; 6 years of service in
34    1999;  and  3  years  of  service in any single calendar year
 
                            -12-              LRB9111503EGfgB
 1    2000, 2001, and 2002.  No  person  may  establish  additional
 2    optional  benefits  under this Section for more than 15 years
 3    of service.
 4    (Source: P.A. 90-12, eff. 6-13-97.)

 5        (40 ILCS 5/13-306) (from Ch. 108 1/2, par. 13-306)
 6        Sec. 13-306.  Computation of surviving spouse's annuity.
 7        (a)  Computation of the annuity.  The surviving  spouse's
 8    annuity  shall  be  equal  to  60%  of the retirement annuity
 9    earned and accrued to the credit of  the  deceased  employee,
10    whether  death  occurs  while in service or after withdrawal,
11    plus 1% for each year of total service of the employee  to  a
12    maximum  of  85%;  provided,  however, that if the employee's
13    death arises out of and  in  the  course  of  the  employee's
14    service  to  the employer and is compensable under either the
15    Illinois  Workers'  Compensation  Act  or  Illinois  Workers'
16    Occupational Diseases Act, the surviving spouse's annuity  is
17    payable  regardless  of  the employee's length of service and
18    shall be not less than 50% of the employee's  salary  at  the
19    date of death.
20        For  any  death  in service the early retirement discount
21    required under Section 13-302(b)  shall  not  be  applied  in
22    computing  the  retirement  annuity  upon  which is based the
23    surviving spouse's annuity.
24        (b)  Reciprocal service.  For any employee  or  annuitant
25    who  retires  on or after July 1, 1985 and whose death occurs
26    after January 1, 1991, having at least 15  years  of  service
27    with the employer under this Article, and who was eligible at
28    the  time  of  death  or elected at the time of retirement to
29    have his or her retirement annuity calculated as provided  in
30    Section  20-131  of  this  Code, the surviving spouse benefit
31    shall be calculated as of the date of the employee's death as
32    indicated in subsection (a) as a percentage of the employee's
33    total benefit as if all service had been with  the  employer.
 
                            -13-              LRB9111503EGfgB
 1    That  benefit shall then be reduced by the amounts payable by
 2    each of the reciprocal funds as of the date of death so  that
 3    the total surviving spouse benefit at that date will be equal
 4    to  the benefit which would have been payable had all service
 5    been with the employer under this Article.
 6        (c)  Discount for age differential.  The  annuity  for  a
 7    surviving  spouse  shall be discounted by 0.25% for each full
 8    month that the spouse is younger than the employee as of  the
 9    date  of  withdrawal  from  service  or death in service to a
10    maximum discount of 60% of the surviving  spouse  annuity  as
11    calculated  under  subsections  (a),  (b),  and  (e)  of this
12    Section.  The discount shall be reduced by 10% for each  full
13    year  the  marriage  has  been in continuous effect as of the
14    date of withdrawal or death in service.  There  shall  be  no
15    discount if the marriage has been in continuous effect for 10
16    full  years  or  more  at  the time of withdrawal or death in
17    service.
18        (d)  Annual increase.  On the first day of each  calendar
19    month  in which there occurs an anniversary of the employee's
20    date of retirement  or  date  of  death,  whichever  occurred
21    first,  the  surviving  spouse's  annuity,  other than a term
22    annuity under Section 13-307, shall be increased by an amount
23    equal to 3% of the amount of the annuity.  Beginning  January
24    1,  1993,  all annual increases payable under this subsection
25    (or any predecessor  provision  of  this  Article)  shall  be
26    calculated  at  the rate of 3% of the monthly annuity payable
27    at  the  time  of  the  increase,  including  any   increases
28    previously granted under this Article.
29        Beginning  January  1,  1993, surviving spouse annuitants
30    whose deceased spouse died, retired or withdrew from  service
31    before  August  23,  1989  with  at least 10 years of service
32    under this Article shall be eligible for the annual increases
33    provided under this subsection.
34        (e)  Minimum  surviving  spouse's   annuity.    Beginning
 
                            -14-              LRB9111503EGfgB
 1    January  1,  1993,  the  minimum  monthly  surviving spouse's
 2    annuity shall be $500 for any annuitant whose deceased spouse
 3    had at least 10 years of service under  this  Article,  other
 4    than  a  surviving  spouse  who  is a term annuitant or whose
 5    deceased spouse began receiving a  retirement  annuity  under
 6    this Article before attainment of age 60.  Any such surviving
 7    spouse  annuitant  who is receiving a monthly annuity of less
 8    than $500 shall have the annuity increased to  $500  on  that
 9    date.
10        Beginning  January 1, 1993, the minimum monthly surviving
11    spouse's annuity shall be $250 for any annuitant (other  than
12    a term or reciprocal annuitant or an annuitant survivor under
13    subsection  (d)  of Section 13-301) whose deceased spouse had
14    less than 10 years of service under this Article, and for any
15    annuitant (other than a term annuitant) whose deceased spouse
16    had at least 10 years of service under this Article and began
17    receiving a retirement  annuity  under  this  Article  before
18    attainment  of  age  60.  Any such surviving spouse annuitant
19    who is receiving a monthly annuity of less  than  $250  shall
20    have the annuity increased to $250 on that date.
21        Notwithstanding  any  other provision of this subsection,
22    beginning on the first annuity  payment  date  following  the
23    effective  date  of  this  amendatory Act of the 91st General
24    Assembly, an annuitant whose deceased spouse  retired  before
25    August  23, 1989 with at least 10 years of service under this
26    Article but before attaining age 60  (regardless  of  whether
27    the  retirement  annuity  was  subject to an early retirement
28    discount) shall be  entitled  to  the  same  minimum  monthly
29    surviving  spouse's  annuity  under  this  subsection  as  an
30    annuitant  whose  deceased  spouse  retired  with at least 10
31    years of service under this Article and after  attaining  age
32    60.
33        The  minimum  annuity  provided under this subsection (e)
34    shall  be  subject  to  the  age  discount   provided   under
 
                            -15-              LRB9111503EGfgB
 1    subsection (c) of this Section.
 2    (Source: P.A. 90-12, eff. 6-13-97.)

 3        (40 ILCS 5/13-314) (from Ch. 108 1/2, par. 13-314)
 4        Sec.    13-314.  Alternative    provisions    for   Water
 5    Reclamation District commissioners.
 6        (a)  Transfer of credits.  Any Water Reclamation District
 7    commissioner elected by  vote  of  the  people  and  who  has
 8    elected to participate in this Fund may transfer to this Fund
 9    credits  and  creditable  service accumulated under any other
10    pension fund or retirement system established under  Articles
11    2  through  18  of this Code, upon payment to the Fund of (1)
12    the amount by which the employer and  employee  contributions
13    that  would have been required if he had participated in this
14    Fund during the period for which credit is being transferred,
15    plus interest, exceeds the amounts actually transferred  from
16    such  other  fund  or  system to this Fund, plus (2) interest
17    thereon at 6% per year compounded annually from the  date  of
18    transfer to the date of payment.
19        (b)  Alternative  annuity.   Any participant commissioner
20    may elect to establish alternative credits for an alternative
21    annuity by electing in writing to  make  additional  optional
22    contributions  in accordance with this Section and procedures
23    established by the Board.  Such commissioner may  discontinue
24    making the additional optional contributions by notifying the
25    fund   in   writing  in  accordance  with  this  Section  and
26    procedures established by the Board.
27        Additional optional  contributions  for  the  alternative
28    annuity shall be as follows:
29             (1)  For  service  after  the  option is elected, an
30        additional  contribution  of  3%  of  salary   shall   be
31        contributed  to  the Fund on the same basis and under the
32        same conditions as contributions required  under  Section
33        13-502.
 
                            -16-              LRB9111503EGfgB
 1             (2)  For  contributions  on  past service before the
 2        option is elected, the additional contribution  shall  be
 3        3%  of  the  salary for the applicable period of service,
 4        plus interest at the annual rate from  time  to  time  as
 5        determined  by  the  Board,  compounded annually from the
 6        date of service to the date  of  payment.   Contributions
 7        for service before the option is elected may be made in a
 8        lump  sum  payment  to the Fund or by contributing to the
 9        Fund on the same basis and under the same  conditions  as
10        contributions   required   under  Section  13-502.    All
11        payments for past service must be  paid  in  full  before
12        credit  is  given.   No additional optional contributions
13        may be made for any period of service  for  which  credit
14        has  been previously forfeited by acceptance of a refund,
15        unless the refund is repaid in full with interest at  the
16        rate specified in Section 13-603, from the date of refund
17        to the date of repayment.
18        In lieu of the retirement annuity otherwise payable under
19    this Article, any commissioner who has elected to participate
20    in  the  Fund  and  make additional optional contributions in
21    accordance with this Section, has attained age 55, and has at
22    least 6 years of  service  credit,  may  elect  to  have  the
23    retirement   annuity   computed   as   follows:   3%  of  the
24    participant's average final salary as a commissioner for each
25    of the first 8 years of  service  credit,  plus  4%  of  such
26    salary  for  each of the next 4 years of service credit, plus
27    5% of such salary for each year of service credit  in  excess
28    of  12 years, subject to a maximum of 80% of such salary.  To
29    the extent such commissioner  has  made  additional  optional
30    contributions  with  respect  to  only  a portion of years of
31    service  credit,  the  retirement  annuity  will   first   be
32    determined in accordance with this Section to the extent such
33    additional  optional  contributions  were  made,  and then in
34    accordance with the remaining Sections of this Article to the
 
                            -17-              LRB9111503EGfgB
 1    extent of years of  service  credit  with  respect  to  which
 2    additional  optional contributions were not made.  The change
 3    in minimum retirement age  (from  60  to  55)  made  by  this
 4    amendatory Act of 1993 applies to persons who begin receiving
 5    a  retirement  annuity  under  this  Section  on or after the
 6    effective date of this  amendatory  Act,  without  regard  to
 7    whether they are in service on or after that date.
 8        (c)  Disability  benefits.   In  lieu  of  the disability
 9    benefits  otherwise   payable   under   this   Article,   any
10    commissioner  who (1) has elected to participate in the Fund,
11    and (2) has become permanently disabled and as a  consequence
12    is unable to perform the duties of office, and (3) was making
13    optional contributions in accordance with this Section at the
14    time  the  disability  was  incurred,  may elect to receive a
15    disability annuity calculated in accordance with the  formula
16    in subsection (b).  For the purposes of this subsection, such
17    commissioner  shall  be  considered permanently disabled only
18    if: (i) disability occurs while in service as a  commissioner
19    and  is  of  such  a  nature  as  to  prevent  the reasonable
20    performance of the duties of office at the time; and (ii) the
21    Board has received a written  certification  by  at  least  2
22    licensed   physicians  appointed  by  it  stating  that  such
23    commissioner is disabled and that the disability is likely to
24    be permanent.
25        (d)  Alternative survivor's  benefits.  In  lieu  of  the
26    survivor's benefits otherwise payable under this Article, the
27    spouse or eligible child of any deceased commissioner who (1)
28    had  elected  to  participate in the Fund, and (2) was either
29    making additional  optional  contributions  on  the  date  of
30    death,  or  was  receiving  an  annuity calculated under this
31    Section at the time of death, may elect to receive an annuity
32    beginning on the date of the commissioner's  death,  provided
33    that  the  spouse  and commissioner must have been married on
34    the date of the last termination of a service as commissioner
 
                            -18-              LRB9111503EGfgB
 1    and for a continuous period of at least one year  immediately
 2    preceding death.
 3        The annuity shall be payable beginning on the date of the
 4    commissioner's death if the spouse is then age 50 or over, or
 5    beginning  at age 50 if the age of the spouse is less than 50
 6    years.  If  a  minor  unmarried  child  or  children  of  the
 7    commissioner,  under  age  18, also survive, and the child or
 8    children are under the  care  of  the  eligible  spouse,  the
 9    annuity   shall  begin  as  of  the  date  of  death  of  the
10    commissioner without regard to the spouse's age.
11        The annuity to a spouse shall be 66 2/3% of the amount of
12    retirement annuity earned by the commissioner on the date  of
13    death,  subject  to  a  minimum  payment  of  10%  of salary,
14    provided that if an eligible spouse, regardless of  age,  has
15    in  his  or her care at the date of death of the commissioner
16    any unmarried child or children of the commissioner under age
17    18, the minimum annuity shall be 30%  of  the  commissioner's
18    salary,  plus 10% of salary on account of each minor child of
19    the commissioner, subject to  a  combined  total  payment  on
20    account  of  a spouse and minor children not to exceed 50% of
21    the deceased commissioner's salary. In the event there  shall
22    be  no  spouse  of  the  commissioner  surviving, or should a
23    spouse die while eligible minor children  still  survive  the
24    commissioner, each such child shall be entitled to an annuity
25    equal  to  20%  of  salary  of  the commissioner subject to a
26    combined total payment on account of all such children not to
27    exceed 50% of salary of the commissioner. The  salary  to  be
28    used  in  the calculation of these benefits shall be the same
29    as that prescribed for determining a  retirement  annuity  as
30    provided in subsection (b) of this Section.
31        Upon   the   death  of  a  commissioner  occurring  after
32    termination of a service or while in receipt of a  retirement
33    annuity,  the  combined  total  payment to a spouse and minor
34    children, or to minor children alone if  no  eligible  spouse
 
                            -19-              LRB9111503EGfgB
 1    survives, shall be limited to 75% of the amount of retirement
 2    annuity earned by the commissioner.
 3        Adopted children shall have status as natural children of
 4    the  commissioner  only  if the proceedings for adoption were
 5    commenced at  least  one  year  prior  to  the  date  of  the
 6    commissioner's death.
 7        Marriage  of  a  child or attainment of age 18, whichever
 8    first occurs, shall render the child ineligible  for  further
 9    consideration in the payment of annuity to a spouse or in the
10    increase   in   the   amount   thereof.  Upon  attainment  of
11    ineligibility  of   the   youngest   minor   child   of   the
12    commissioner,  the  annuity  shall  immediately revert to the
13    amount payable upon death of a commissioner leaving no  minor
14    children  surviving.  If  the  spouse is under age 50 at such
15    time, the annuity as revised shall be deferred until such age
16    is attained.
17        (e)  Refunds.    Refunds    of    additional     optional
18    contributions  shall  be made on the same basis and under the
19    same conditions as provided under  Section  13-601.  Interest
20    shall  be  credited  on  the  same  basis  and under the same
21    conditions as for other contributions.
22        Optional  contributions  shall  be  accounted  for  in  a
23    separate   Commission's   Optional   Contribution    Reserve.
24    Optional  contributions  under this Section shall be included
25    in the amount of employee contributions used to  compute  the
26    tax levy under Section 13-503.
27        (f)  Effective  date.  The effective date of this plan of
28    optional alternative benefits and contributions shall be  the
29    date  upon which approval was received from the U.S. Internal
30    Revenue Service.  The plan of optional  alternative  benefits
31    and  contributions  shall  not  be  available  to  any former
32    employee receiving an annuity from the Fund on the  effective
33    date,  unless  said  former  employee  re-enters  service and
34    renders at least 3 years of additional service after the date
 
                            -20-              LRB9111503EGfgB
 1    of re-entry as a commissioner.
 2    (Source: P.A. 90-12, eff. 6-13-97.)

 3        (40 ILCS 5/13-603) (from Ch. 108 1/2, par. 13-603)
 4        Sec. 13-603.  Restoration of rights.  If an employee  who
 5    has  received a refund subsequently re-enters the service and
 6    renders one year of contributing service  from  the  date  of
 7    such  re-entry,  the  employee  shall  be  entitled  to  have
 8    restored  all  accumulation  and  service  credits previously
 9    forfeited by making a  repayment  of  the  refund,  including
10    interest  of  8% per annum from the date of the refund to the
11    date of repayment at a rate equal to the  higher  of  8%  per
12    annum  or  the actuarial investment return assumption used in
13    the Fund's most recent Annual Actuarial Statement.  Repayment
14    may be made either directly  to  the  Fund  or  in  a  manner
15    similar to that provided for the contributions required under
16    Section  13-502.   The  repayment must be made in a lump sum.
17    The service credits represented thereby, or any part thereof,
18    shall not become effective unless the  full  amount  due  has
19    been  paid  by  the  employee,  including  interest.   If the
20    employee fails to make a full repayment, any partial  amounts
21    paid  by  the  employee shall be refunded without interest if
22    the employee dies in service or withdraws.
23    (Source: P.A. 87-794.)

24        Section 90.  The State Mandates Act is amended by  adding
25    Section 8.24 as follows:

26        (30 ILCS 805/8.24 new)
27        Sec.  8.24.  Exempt  mandate.  Notwithstanding Sections 6
28    and 8 of this Act, no reimbursement by the State is  required
29    for  the  implementation  of  any  mandate  created  by  this
30    amendatory Act of the 91st General Assembly.
 
                            -21-              LRB9111503EGfgB
 1        Section  99.  Effective date.  This Act takes effect upon
 2    becoming law.

[ Top ]