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91_SB0662 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
$3,000death 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 3of 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 , whichhad 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 set12 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 to30 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 1licensed 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 beapplicable 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 $3,000death 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 $3,000death 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 $3,000death benefit or 11 apply the additional service credits to a single sum death 12 benefit and forego the $5,000 $3,000death 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 $3,000death 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 15 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 $3,000plus 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 $3,000and, 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 $3,000plus 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 $3,000death 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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