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91_SB1501
LRB9110333EGfg
1 AN ACT in relation to public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The State Employees Group Insurance Act of
5 1971 is amended by changing Section 6.10 as follows:
6 (5 ILCS 375/6.10)
7 Sec. 6.10. Contributions to the Community College
8 Health Insurance Security Fund.
9 (a) Beginning January 1, 1999, every active contributor
10 of the State Universities Retirement System (established
11 under Article 15 of the Illinois Pension Code) who (1) is a
12 full-time employee of a community college district (other
13 than a community college district subject to Article VII of
14 the Public Community College Act) or an association of
15 community college boards and (2) is not an employee as
16 defined in Section 3 of this Act shall make contributions
17 toward the cost of community college annuitant and survivor
18 health benefits at the rate of 0.50% of salary.
19 These contributions shall be deducted by the employer and
20 paid to the State Universities Retirement System as service
21 agent for the Department of Central Management Services. The
22 System may use the same processes for collecting the
23 contributions required by this subsection that it uses to
24 collect the contributions received from those employees under
25 Section 15-157 of the Illinois Pension Code. An employer may
26 agree to pick up or pay the contributions required under this
27 subsection on behalf of the employee; such contributions
28 shall be deemed to have been paid by the employee.
29 A person required to make contributions under this
30 subsection (a) who purchases optional service credit under
31 Article 15 of the Illinois Pension Code must also pay the
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1 contribution required under this subsection (a) with respect
2 to that optional service credit. This contribution must be
3 received by the System before that optional service credit is
4 granted.
5 The State Universities Retirement System shall promptly
6 deposit all moneys collected under this subsection (a) into
7 the Community College Health Insurance Security Fund created
8 in Section 6.9 of this Act. The moneys collected under this
9 Section shall be used only for the purposes authorized in
10 Section 6.9 of this Act and shall not be considered to be
11 assets of the State Universities Retirement System.
12 Contributions made under this Section are not transferable to
13 other pension funds or retirement systems and are not
14 refundable upon termination of service.
15 (b) Beginning January 1, 1999, every community college
16 district (other than a community college district subject to
17 Article VII of the Public Community College Act) or
18 association of community college boards that is an employer
19 under the State Universities Retirement System shall
20 contribute toward the cost of the community college health
21 benefits provided under Section 6.9 of this Act an amount
22 equal to 0.50% of the salary paid to its full-time employees
23 who participate in the State Universities Retirement System
24 and are not members as defined in Section 3 of this Act.
25 These contributions shall be paid by the employer to the
26 State Universities Retirement System as service agent for the
27 Department of Central Management Services. The System may
28 use the same processes for collecting the contributions
29 required by this subsection that it uses to collect the
30 contributions received from those employers under Section
31 15-155 of the Illinois Pension Code.
32 The State Universities Retirement System shall promptly
33 deposit all moneys collected under this subsection (b) into
34 the Community College Health Insurance Security Fund created
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1 in Section 6.9 of this Act. The moneys collected under this
2 Section shall be used only for the purposes authorized in
3 Section 6.9 of this Act and shall not be considered to be
4 assets of the State Universities Retirement System.
5 Contributions made under this Section are not transferable to
6 other pension funds or retirement systems and are not
7 refundable upon termination of service.
8 (c) On or before November 15 of each year, the Board of
9 Trustees of the State Universities Retirement System shall
10 certify to the Governor, the Director of Central Management
11 Services, and the State Comptroller its estimate of the total
12 amount of contributions to be paid under subsection (a) of
13 this Section for the next fiscal year. The certification
14 shall include a detailed explanation of the methods and
15 information that the Board relied upon in preparing its
16 estimate. As soon as possible after the effective date of
17 this Section, the Board shall submit its estimate for fiscal
18 year 1999.
19 (d) Beginning in fiscal year 1999, on the first day of
20 each month, or as soon thereafter as may be practical, the
21 State Treasurer and the State Comptroller shall transfer from
22 the General Revenue Fund to the Community College Health
23 Insurance Security Fund 1/12 of the annual amount
24 appropriated for that fiscal year to the State Comptroller
25 for deposit into the Community College Health Insurance
26 Security Fund under Section 1.4 of the State Pension Funds
27 Continuing Appropriation Act.
28 (e) Except where otherwise specified in this Section,
29 the definitions that apply to Article 15 of the Illinois
30 Pension Code apply to this Section.
31 (Source: P.A. 90-497, eff. 8-18-97.)
32 Section 10. The Illinois Pension Code is amended by
33 changing Sections 15-107, 15-111, 15-112, 15-134.5, 15-136,
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1 15-136.2, 15-136.3, 15-136.4, 15-139, 15-140, 15-141, 15-142,
2 15-144, 15-145, 15-146, 15-148, 15-153.3, 15-154, 15-158.2,
3 15-181, 20-121, 20-123, 20-124, 20-125, and 20-131 as
4 follows:
5 (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
6 Sec. 15-107. Employee.
7 (a) "Employee" means any member of the educational,
8 administrative, secretarial, clerical, mechanical, labor or
9 other staff of an employer whose employment is permanent and
10 continuous or who is employed in a position in which services
11 are expected to be rendered on a continuous basis for at
12 least 4 months or one academic term, whichever is less, who
13 (A) receives payment for personal services on a warrant
14 issued pursuant to a payroll voucher certified by an employer
15 and drawn by the State Comptroller upon the State Treasurer
16 or by an employer upon trust, federal or other funds, or (B)
17 is on a leave of absence without pay. Employment which is
18 irregular, intermittent or temporary shall not be considered
19 continuous for purposes of this paragraph.
20 However, a person is not an "employee" if he or she:
21 (1) is a student enrolled in and regularly
22 attending classes in a college or university which is an
23 employer, and is employed on a temporary basis at less
24 than full time;
25 (2) is currently receiving a retirement annuity or
26 a disability retirement annuity under Section 15-153.2
27 from this System;
28 (3) is on a military leave of absence;
29 (4) is eligible to participate in the Federal Civil
30 Service Retirement System and is currently making
31 contributions to that system based upon earnings paid by
32 an employer;
33 (5) is on leave of absence without pay for more
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1 than 60 days immediately following termination of
2 disability benefits under this Article;
3 (6) is hired after June 30, 1979 as a public
4 service employment program participant under the Federal
5 Comprehensive Employment and Training Act and receives
6 earnings in whole or in part from funds provided under
7 that Act;
8 (7) is employed on or after July 1, 1991 to perform
9 services that are excluded by subdivision (a)(7)(f) or
10 (a)(19) of Section 210 of the federal Social Security Act
11 from the definition of employment given in that Section
12 (42 U.S.C. 410); or
13 (8) participates in an optional program for
14 part-time workers under Section 15-158.1.
15 (b) Any employer may, by filing a written notice with
16 the board, exclude from the definition of "employee" all
17 persons employed pursuant to a federally funded contract
18 entered into after July 1, 1982 with a federal military
19 department in a program providing training in military
20 courses to federal military personnel on a military site
21 owned by the United States Government, if this exclusion is
22 not prohibited by the federally funded contract or federal
23 laws or rules governing the administration of the contract.
24 (c) Any person appointed by the Governor under the Civil
25 Administrative Code of the State is an employee, if he or she
26 is a participant in this system on the effective date of the
27 appointment.
28 (d) A participant on lay-off status under civil service
29 rules is considered an employee for not more than 120 days
30 from the date of the lay-off.
31 (e) A participant is considered an employee during (1)
32 the first 60 days of disability leave, (2) the period, not to
33 exceed one year, in which his or her eligibility for
34 disability benefits is being considered by the board or
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1 reviewed by the courts, and (3) the period he or she receives
2 disability benefits under the provisions of Section 15-152,
3 workers' compensation or occupational disease benefits, or
4 disability income under an insurance contract financed wholly
5 or partially by the employer.
6 (f) Absences without pay, other than formal leaves of
7 absence, of less than 30 calendar days, are not considered as
8 an interruption of a person's status as an employee. If such
9 absences during any period of 12 months exceed 30 work days,
10 the employee status of the person is considered as
11 interrupted as of the 31st work day.
12 (g) A staff member whose employment contract requires
13 services during an academic term is to be considered an
14 employee during the summer and other vacation periods, unless
15 he or she declines an employment contract for the succeeding
16 academic term or his or her employment status is otherwise
17 terminated, and he or she receives no earnings during these
18 periods.
19 (h) An individual who was a participating employee
20 employed in the fire department of the University of
21 Illinois's Champaign-Urbana campus immediately prior to the
22 elimination of that fire department and who immediately after
23 the elimination of that fire department became employed by
24 the fire department of the City of Urbana or the City of
25 Champaign shall continue to be considered as an employee for
26 purposes of this Article for so long as the individual
27 remains employed as a firefighter by the City of Urbana or
28 the City of Champaign. The individual shall cease to be
29 considered an employee under this subsection (h) upon the
30 first termination of the individual's employment as a
31 firefighter by the City of Urbana or the City of Champaign.
32 (i) An individual who is employed on a full-time basis
33 as an officer or employee of a statewide teacher organization
34 that serves System participants or an officer of a national
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1 teacher organization that serves System participants may
2 participate in the System and shall be deemed an employee,
3 provided that (1) the individual has previously earned
4 creditable service under this Article, (2) the individual
5 files with the System an irrevocable election to become a
6 participant, and (3) the individual does not receive credit
7 for that employment under any other Article of this Code. An
8 employee under this subsection (i) is responsible for paying
9 to the System both (A) employee contributions based on the
10 actual compensation received for service with the teacher
11 organization and (B) employer contributions equal to the
12 normal costs (as defined in Section 15-155) resulting from
13 that service; all or any part of these contributions may be
14 paid on the employee's behalf or picked up for tax purposes
15 (if authorized under federal law) by the teacher
16 organization.
17 A person who is an employee as defined in this subsection
18 (i) may establish service credit for similar employment prior
19 to becoming an employee under this subsection by paying to
20 the System for that employment the contributions specified in
21 this subsection, plus interest at the effective rate from the
22 date of service to the date of payment. However, credit
23 shall not be granted under this subsection for any such prior
24 employment for which the applicant received credit under any
25 other provision of this Code, or during which the applicant
26 was on a leave of absence under Section 15-113.2.
27 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
28 90-576, eff. 3-31-98; 90-766, eff. 8-14-98.)
29 (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
30 Sec. 15-111. Earnings. "Earnings": An amount paid for
31 personal services equal to the sum of the basic compensation
32 plus extra compensation for summer teaching, overtime or
33 other extra service. For periods for which an employee
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1 receives service credit under subsection (c) of Section
2 15-113.1 or Section 15-113.2, earnings are equal to the basic
3 compensation on which contributions are paid by the employee
4 during such periods. Compensation for employment which is
5 irregular, intermittent and temporary shall not be considered
6 earnings, unless the participant is also receiving earnings
7 from the employer as an employee under Section 15-107.
8 With respect to transition pay paid by the University of
9 Illinois to a person who was a participating employee
10 employed in the fire department of the University of
11 Illinois's Champaign-Urbana campus immediately prior to the
12 elimination of that fire department:
13 (1) "Earnings" includes transition pay paid to the
14 employee on or after the effective date of this
15 amendatory Act of the 91st General Assembly.
16 (2) "Earnings" includes transition pay paid to the
17 employee before the effective date of this amendatory Act
18 of the 91st General Assembly only if (i) employee
19 contributions under Section 15-157 have been withheld
20 from that transition pay or (ii) the employee pays to the
21 System before January 1, 2001 an amount representing
22 employee contributions under Section 15-157 on that
23 transition pay. Employee contributions under item (ii)
24 may be paid in a lump sum, by withholding from additional
25 transition pay accruing before January 1, 2001, or in any
26 other manner approved by the System. Upon payment of the
27 employee contributions on transition pay, the
28 corresponding employer contributions become an obligation
29 of the State.
30 (Source: P.A. 87-8.)
31 (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
32 Sec. 15-112. Final rate of earnings. "Final rate of
33 earnings": For an employee who is paid on an hourly basis or
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1 who receives an annual salary in installments during 12
2 months of each academic year, the average annual earnings
3 during the 48 consecutive calendar month period ending with
4 the last day of final termination of employment or the 4
5 consecutive academic years of service in which the employee's
6 earnings were the highest, whichever is greater. For any
7 other employee, the average annual earnings during the 4
8 consecutive academic years of service in which his or her
9 earnings were the highest. For an employee with less than 48
10 months or 4 consecutive academic years of service, the
11 average earnings during his or her entire period of service.
12 The earnings of an employee with more than 36 months of
13 service prior to the date of becoming a participant are, for
14 such period, considered equal to the average earnings during
15 the last 36 months of such service. For an employee on leave
16 of absence with pay, or on leave of absence without pay who
17 makes contributions during such leave, earnings are assumed
18 to be equal to the basic compensation on the date the leave
19 began. For an employee on disability leave, earnings are
20 assumed to be equal to the basic compensation on the date
21 disability occurs or the average earnings during the 24
22 months immediately preceding the month in which disability
23 occurs, whichever is greater.
24 For a participant who retires on or after the effective
25 date of this amendatory Act of 1997 with at least 20 years of
26 service as a firefighter or police officer under this
27 Article, the final rate of earnings shall be the annual rate
28 of earnings received by the participant on his or her last
29 day as a firefighter or police officer under this Article, if
30 that is greater than the final rate of earnings as calculated
31 under the other provisions of this Section.
32 If a participant is an employee for at least 6 months
33 during the academic year in which his or her employment is
34 terminated, the annual final rate of earnings shall be 25% of
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1 the sum of (1) the annual basic compensation for that year,
2 and (2) the amount earned during the 36 months immediately
3 preceding that year, if this is greater than the final rate
4 of earnings as calculated under the other provisions of this
5 Section.
6 In the determination of the final rate of earnings for an
7 employee, that part of an employee's earnings for any
8 academic year beginning after June 30, 1997, which exceeds
9 the employee's earnings with that employer for the preceding
10 year by more than 20 percent shall be excluded; in the event
11 that an employee has more than one employer this limitation
12 shall be calculated separately for the earnings with each
13 employer. In making such calculation, only the basic
14 compensation of employees shall be considered, without regard
15 to vacation or overtime or to contracts for summer
16 employment.
17 The following are not considered as earnings in
18 determining final rate of earnings: severance or separation
19 pay, retirement pay, payment in lieu of unused sick leave and
20 payments from an employer for the period used in determining
21 final rate of earnings for any purpose other than services
22 rendered, leave of absence or vacation granted during that
23 period, and vacation of up to 56 work days allowed upon
24 termination of employment under a vacation policy of an
25 employer which was in effect on or before January 1, 1977.
26 Intermittent periods of service shall be considered as
27 consecutive in determining final rate of earnings.
28 (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
29 (40 ILCS 5/15-134.5)
30 Sec. 15-134.5. Retirement program elections.
31 (a) All participating employees are participants under
32 the traditional benefit package prior to January 1, 1998.
33 Effective as of the date that an employer elects, as
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1 described in Section 15-158.2, to offer to its employees the
2 portable benefit package and the self-managed plan as
3 alternatives to the traditional benefit package, each of that
4 employer's eligible employees (as defined in subsection (b))
5 shall be given the choice to elect which retirement program
6 he or she wishes to participate in with respect to all
7 periods of covered employment occurring on and after the
8 effective date of the employee's election. The retirement
9 program election made by an eligible employee must be made in
10 writing, in the manner prescribed by the System, and within
11 the time period described in subsection (d) or (d-1).
12 The employee election authorized by this Section is a
13 one-time, irrevocable election. If an employee terminates
14 employment after making the election provided under this
15 subsection (a), then upon his or her subsequent re-employment
16 with an employer the original election shall automatically
17 apply to him or her, provided that the employer is then a
18 participating employer as described in Section 15-158.2.
19 An eligible employee who fails to make this election
20 shall, by default, participate in the traditional benefit
21 package.
22 (b) "Eligible employee" means an employee (as defined in
23 Section 15-107) who is either a currently eligible employee
24 or a newly eligible employee. For purposes of this Section,
25 a "currently eligible employee" is an employee who is
26 employed by an employer on the effective date on which the
27 employer offers to its employees the portable benefit package
28 and the self-managed plan as alternatives to the traditional
29 benefit package. A "newly eligible employee" is an employee
30 who first becomes employed by an employer after the effective
31 date on which the employer offers its employees the portable
32 benefit package and the self-managed plan as alternatives to
33 the traditional benefit package. A newly eligible employee
34 participates in the traditional benefit package until he or
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1 she makes an election to participate in the portable benefit
2 package or the self-managed plan. If an employee does not
3 elect to participate in the portable benefit package or the
4 self-managed plan, he or she shall continue to participate in
5 the traditional benefit package by default.
6 (c) An eligible employee who at the time he or she is
7 first eligible to make the election described in subsection
8 (a) does not have sufficient age and service to qualify for a
9 retirement annuity under Section 15-135 may elect to
10 participate in the traditional benefit package, the portable
11 benefit package, or the self-managed plan. An eligible
12 employee who has sufficient age and service to qualify for a
13 retirement annuity under Section 15-135 at the time he or she
14 is first eligible to make the election described in
15 subsection (a) may elect to participate in the traditional
16 benefit package or the portable benefit package, but may not
17 elect to participate in the self-managed plan.
18 (d) A currently eligible employee must make this
19 election within one year after the effective date of the
20 employer's adoption of the self-managed plan.
21 A newly eligible employee must make this election within
22 one year after the date on which the System receives the
23 report of status certification from the employer 60 days
24 after becoming an eligible employee. If an employee elects
25 to participate in the self-managed plan, no employer
26 contributions shall be remitted to the self-managed plan when
27 the employee's account balance transfer is made. Employer
28 contributions to the self-managed plan shall commence as of
29 the first pay period that begins after the System receives
30 the employee's election.
31 (d-1) A newly eligible employee who, prior to the
32 effective date of this amendatory Act of the 91st General
33 Assembly, fails to make the election within the period
34 provided under subsection (d) and participates by default in
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1 the traditional benefit package may make a late election to
2 participate in the portable benefit package or the
3 self-managed plan instead of the traditional benefit package
4 at any time within one year after the effective date of this
5 amendatory Act of the 91st General Assembly. The employer
6 shall not remit contributions to the System on behalf of a
7 newly eligible employee until the earlier of the expiration
8 of the employee's 60-day election period or the date on which
9 the employee submits a properly completed election to the
10 employer or to the System.
11 (e) If a currently an eligible employee elects the
12 portable benefit package, that election shall not become
13 effective until the one-year anniversary of the date on which
14 the election is filed with the System, provided the employee
15 remains continuously employed by the employer throughout the
16 one-year waiting period, and any benefits payable to or on
17 account of the employee before such one-year waiting period
18 has ended shall not be determined under the provisions
19 applicable to the portable benefit package but shall instead
20 be determined in accordance with the traditional benefit
21 package. If a currently an eligible employee who has elected
22 the portable benefit package terminates employment covered by
23 the System before the one-year waiting period has ended, then
24 no benefits shall be determined under the portable benefit
25 package provisions while he or she is inactive in the System
26 and upon re-employment with an employer covered by the System
27 he or she shall begin a new one-year waiting period before
28 the provisions of the portable benefit package become
29 effective.
30 (f) An eligible employee shall be provided with written
31 information prepared or prescribed by the System which
32 describes the employee's retirement program choices. The
33 eligible employee shall be offered an opportunity to receive
34 counseling from the System prior to making his or her
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1 election. This counseling may consist of videotaped
2 materials, group presentations, individual consultation with
3 an employee or authorized representative of the System in
4 person or by telephone or other electronic means, or any
5 combination of these methods.
6 (Source: P.A. 90-766, eff. 8-14-98.)".
7 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
8 Sec. 15-136. Retirement annuities - Amount. The
9 provisions of this Section 15-136 apply only to those
10 participants who are participating in the traditional benefit
11 package or the portable benefit package and do not apply to
12 participants who are participating in the self-managed plan.
13 (a) The amount of a participant's retirement annuity,
14 expressed in the form of a single-life annuity, shall be
15 determined by whichever of the following rules is applicable
16 and provides the largest annuity:
17 Rule 1: The retirement annuity shall be 1.67% of final
18 rate of earnings for each of the first 10 years of service,
19 1.90% for each of the next 10 years of service, 2.10% for
20 each year of service in excess of 20 but not exceeding 30,
21 and 2.30% for each year in excess of 30; or for persons who
22 retire on or after January 1, 1998, 2.2% of the final rate of
23 earnings for each year of service.
24 Rule 2: The retirement annuity shall be the sum of the
25 following, determined from amounts credited to the
26 participant in accordance with the actuarial tables and the
27 prescribed rate of interest in effect at the time the
28 retirement annuity begins:
29 (i) the normal annuity which can be provided on an
30 actuarially equivalent basis, by the accumulated normal
31 contributions as of the date the annuity begins; and
32 (ii) an annuity from employer contributions of an
33 amount equal to that which can be provided on an
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1 actuarially equivalent basis from the accumulated normal
2 contributions made by the participant under Section
3 15-113.6 and Section 15-113.7 and the employee
4 contribution made under Section 15-136.2; and
5 (iii) an annuity from employer contributions of an
6 amount equal to that which can be provided on an
7 actuarially equivalent basis from plus 1.4 times all
8 other accumulated normal contributions made by the
9 participant other than contributions made under Section
10 15-113.6, 15-113.7, or 15-136.2 and multiplied by 1.4.
11 The employee contribution made under Section 15-136.2 shall
12 be treated as a normal contribution for purposes of this Rule
13 2 only (regardless of whether that employee contribution was
14 paid by the employer on behalf of the participant).
15 With respect to any retirement annuity that began before
16 the effective date of this amendatory Act of the 91st General
17 Assembly and for which an employee contribution was made
18 under Section 15-136.2, the System shall recalculate the
19 retirement annuity and shall pay the amounts thus due in the
20 manner provided in Section 15-186.1 for benefits mistakenly
21 set too low.
22 In no event shall an increased Rule 2 retirement annuity
23 otherwise resulting from this amendatory Act of the 91st
24 General Assembly be lower than the amount obtained by adding
25 (1) the monthly amount obtained by dividing the combined
26 employee and employer contributions made under Section
27 15-136.2 by the System's annuity factor for the age of the
28 participant at the beginning of the annuity payment period
29 and (2) the amount equal to the participant's annuity if
30 calculated under Rule 1, reduced under Section 15-136(b) as
31 if no contributions had been made under Section 15-136.2.
32 The changes made by this amendatory Act of the 91st
33 General Assembly are a legislative response to and
34 implementation of the Fourth District Appellate Court
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1 decision in Mattis v. State Universities Retirement System et
2 al. The changes made by this amendatory Act of the 91st
3 General Assembly apply without regard to whether the person
4 is in service as an employee on or after its effective date.
5 With respect to a police officer or firefighter who
6 retires on or after August 14, the effective date of this
7 amendatory Act of 1998, the accumulated normal contributions
8 taken into account under clauses (i) and (ii) of this Rule 2
9 shall include the additional normal contributions made by the
10 police officer or firefighter under Section 15-157(a).
11 Rule 3: The retirement annuity of a participant who is
12 employed at least one-half time during the period on which
13 his or her final rate of earnings is based, shall be equal to
14 the participant's years of service not to exceed 30,
15 multiplied by (1) $96 if the participant's final rate of
16 earnings is less than $3,500, (2) $108 if the final rate of
17 earnings is at least $3,500 but less than $4,500, (3) $120 if
18 the final rate of earnings is at least $4,500 but less than
19 $5,500, (4) $132 if the final rate of earnings is at least
20 $5,500 but less than $6,500, (5) $144 if the final rate of
21 earnings is at least $6,500 but less than $7,500, (6) $156 if
22 the final rate of earnings is at least $7,500 but less than
23 $8,500, (7) $168 if the final rate of earnings is at least
24 $8,500 but less than $9,500, and (8) $180 if the final rate
25 of earnings is $9,500 or more, except that the annuity for
26 those persons having made an election under Section
27 15-154(a-1) shall be calculated and payable under the
28 portable retirement benefit program pursuant to the
29 provisions of Section 15-136.4.
30 Rule 4: A participant who is at least age 50 and has 25
31 or more years of service as a police officer or firefighter,
32 and a participant who is age 55 or over and has at least 20
33 but less than 25 years of service as a police officer or
34 firefighter, shall be entitled to a retirement annuity of
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1 2 1/4% of the final rate of earnings for each of the first 10
2 years of service as a police officer or firefighter, 2 1/2%
3 for each of the next 10 years of service as a police officer
4 or firefighter, and 2 3/4% for each year of service as a
5 police officer or firefighter in excess of 20. The
6 retirement annuity for all other service shall be computed
7 under Rule 1.
8 For purposes of this Rule 4, a participant's service as a
9 firefighter shall also include the following:
10 (i) service that is performed while the person is
11 an employee under subsection (h) of Section 15-107; and
12 (ii) in the case of an individual who was a
13 participating employee employed in the fire department of
14 the University of Illinois's Champaign-Urbana campus
15 immediately prior to the elimination of that fire
16 department and who immediately after the elimination of
17 that fire department transferred to another job with the
18 University of Illinois, service performed as an employee
19 of the University of Illinois in a position other than
20 police officer or firefighter, from the date of that
21 transfer until the employee's next termination of service
22 with the University of Illinois.
23 (b) The retirement annuity provided under Rules 1 and 3
24 above shall be reduced by 1/2 of 1% for each month the
25 participant is under age 60 at the time of retirement.
26 However, this reduction shall not apply in the following
27 cases:
28 (1) For a disabled participant whose disability
29 benefits have been discontinued because he or she has
30 exhausted eligibility for disability benefits under
31 clause (6) of Section 15-152;
32 (2) For a participant who has at least the number
33 of years of service required to retire at any age under
34 subsection (a) of Section 15-135; or
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1 (3) For that portion of a retirement annuity which
2 has been provided on account of service of the
3 participant during periods when he or she performed the
4 duties of a police officer or firefighter, if these
5 duties were performed for at least 5 years immediately
6 preceding the date the retirement annuity is to begin.
7 (c) The maximum retirement annuity provided under Rules
8 1, 2, and 4 shall be the lesser of (1) the annual limit of
9 benefits as specified in Section 415 of the Internal Revenue
10 Code of 1986, as such Section may be amended from time to
11 time and as such benefit limits shall be adjusted by the
12 Commissioner of Internal Revenue, and (2) 80% of final rate
13 of earnings.
14 (d) An annuitant whose status as an employee terminates
15 after August 14, 1969 shall receive automatic increases in
16 his or her retirement annuity as follows:
17 Effective January 1 immediately following the date the
18 retirement annuity begins, the annuitant shall receive an
19 increase in his or her monthly retirement annuity of 0.125%
20 of the monthly retirement annuity provided under Rule 1, Rule
21 2, Rule 3, or Rule 4, contained in this Section, multiplied
22 by the number of full months which elapsed from the date the
23 retirement annuity payments began to January 1, 1972, plus
24 0.1667% of such annuity, multiplied by the number of full
25 months which elapsed from January 1, 1972, or the date the
26 retirement annuity payments began, whichever is later, to
27 January 1, 1978, plus 0.25% of such annuity multiplied by the
28 number of full months which elapsed from January 1, 1978, or
29 the date the retirement annuity payments began, whichever is
30 later, to the effective date of the increase.
31 The annuitant shall receive an increase in his or her
32 monthly retirement annuity on each January 1 thereafter
33 during the annuitant's life of 3% of the monthly annuity
34 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
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1 this Section. The change made under this subsection by P.A.
2 81-970 is effective January 1, 1980 and applies to each
3 annuitant whose status as an employee terminates before or
4 after that date.
5 Beginning January 1, 1990, all automatic annual increases
6 payable under this Section shall be calculated as a
7 percentage of the total annuity payable at the time of the
8 increase, including all increases previously granted under
9 this Article.
10 The change made in this subsection by P.A. 85-1008 is
11 effective January 26, 1988, and is applicable without regard
12 to whether status as an employee terminated before that date.
13 (e) If, on January 1, 1987, or the date the retirement
14 annuity payment period begins, whichever is later, the sum of
15 the retirement annuity provided under Rule 1 or Rule 2 of
16 this Section and the automatic annual increases provided
17 under the preceding subsection or Section 15-136.1, amounts
18 to less than the retirement annuity which would be provided
19 by Rule 3, the retirement annuity shall be increased as of
20 January 1, 1987, or the date the retirement annuity payment
21 period begins, whichever is later, to the amount which would
22 be provided by Rule 3 of this Section. Such increased amount
23 shall be considered as the retirement annuity in determining
24 benefits provided under other Sections of this Article. This
25 paragraph applies without regard to whether status as an
26 employee terminated before the effective date of this
27 amendatory Act of 1987, provided that the annuitant was
28 employed at least one-half time during the period on which
29 the final rate of earnings was based.
30 (f) A participant is entitled to such additional annuity
31 as may be provided on an actuarially equivalent basis, by any
32 accumulated additional contributions to his or her credit.
33 However, the additional contributions made by the participant
34 toward the automatic increases in annuity provided under this
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1 Section shall not be taken into account in determining the
2 amount of such additional annuity.
3 (g) If, (1) by law, a function of a governmental unit,
4 as defined by Section 20-107 of this Code, is transferred in
5 whole or in part to an employer, and (2) a participant
6 transfers employment from such governmental unit to such
7 employer within 6 months after the transfer of the function,
8 and (3) the sum of (A) the annuity payable to the participant
9 under Rule 1, 2, or 3 of this Section (B) all proportional
10 annuities payable to the participant by all other retirement
11 systems covered by Article 20, and (C) the initial primary
12 insurance amount to which the participant is entitled under
13 the Social Security Act, is less than the retirement annuity
14 which would have been payable if all of the participant's
15 pension credits validated under Section 20-109 had been
16 validated under this system, a supplemental annuity equal to
17 the difference in such amounts shall be payable to the
18 participant.
19 (h) On January 1, 1981, an annuitant who was receiving a
20 retirement annuity on or before January 1, 1971 shall have
21 his or her retirement annuity then being paid increased $1
22 per month for each year of creditable service. On January 1,
23 1982, an annuitant whose retirement annuity began on or
24 before January 1, 1977, shall have his or her retirement
25 annuity then being paid increased $1 per month for each year
26 of creditable service.
27 (i) On January 1, 1987, any annuitant whose retirement
28 annuity began on or before January 1, 1977, shall have the
29 monthly retirement annuity increased by an amount equal to 8¢
30 per year of creditable service times the number of years that
31 have elapsed since the annuity began.
32 (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
33 eff. 8-16-97; 90-576, eff. 3-31-98; 90-655, eff. 7-30-98;
34 90-766, eff. 8-14-98.)
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1 (40 ILCS 5/15-136.2) (from Ch. 108 1/2, par. 15-136.2)
2 Sec. 15-136.2. Early retirement without discount.
3 (a) A participant whose retirement annuity begins after
4 June 1, 1981 and on or before September 1, 2002 and within
5 six months of the last day of employment for which retirement
6 contributions were required, may elect at the time of
7 application to make a one time employee contribution to the
8 System and thereby avoid the early retirement reduction in
9 retirement annuity specified under subsection (b) of Section
10 15-136. The exercise of the election shall obligate the last
11 employer to also make a one time non-refundable contribution
12 to the System.
13 Unless otherwise contractually waived by agreement with
14 the employer, any person who began to receive a retirement
15 annuity on or after October 6, 1998 and such retirement
16 annuity (i) began within 6 months of the last day of
17 employment for which retirement contributions were required
18 and (ii) was reduced under Section 15-136(b) due to
19 retirement below age 60, may elect, within 6 months after the
20 effective date of this amendatory Act of the 91st General
21 Assembly, to make a one-time employee contribution to the
22 System under this Section and have the retirement annuity
23 recalculated in accordance with Rule 2 of Section 15-136.
24 The exercise of this election obligates the last employer to
25 also make a one-time contribution to the System.
26 (b) The one time employee and employer contributions
27 shall be a percentage of the retiring participant's highest
28 full time annual salary rate during the academic years which
29 were considered in determining his or her final rate of
30 earnings, or if not full time then the full time equivalent.
31 The employee contribution rate shall be 7% multiplied by the
32 lesser of the following 2 sums: (1) the number of years that
33 the participant is less than age 60; or (2) the number of
34 years that the participant's creditable service is less than
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1 35 years. The employer contribution shall be at the rate of
2 20% for each year the participant is less than age 60. The
3 employer shall pay the employer contribution from the same
4 source of funds which is used in paying earnings to
5 employees.
6 Upon receipt of the application and election, the System
7 shall determine the one time employee and employer
8 contributions. The provisions of this Section shall not be
9 applicable until all the above outlined contributions have
10 been received by the System; however, the date such
11 contributions are received shall not be considered in
12 determining the effective date of retirement.
13 For persons who apply to the Board after the effective
14 date of this amendatory Act of 1993 and before July 1, 1993,
15 requesting a retirement annuity to begin no earlier than July
16 1, 1993 and no later than June 30, 1994, the employer shall
17 pay both the employee and employer contributions required
18 under this Section.
19 (c) The number of employees making a contribution
20 retiring under this Section in any fiscal year may be limited
21 at the option of the employer to no less than 15% of those
22 eligible. The right to elect to make a contribution under
23 this Section early retirement without discount shall be
24 allocated among those applying on the basis of seniority in
25 the service of the last employer.
26 (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
27 (40 ILCS 5/15-136.3)
28 Sec. 15-136.3. Minimum retirement annuity.
29 (a) Beginning January 1, 1997, any person who is
30 receiving a monthly retirement annuity under this Article
31 which, after inclusion of (1) all one-time and automatic
32 annual increases to which the person is entitled, (2) any
33 supplemental annuity payable under Section 15-136.1, and (3)
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1 any amount deducted under Section 15-138 or 15-140 to provide
2 a reversionary annuity, is less than the minimum monthly
3 retirement benefit amount specified in subsection (b) of this
4 Section, shall be entitled to a monthly supplemental payment
5 equal to the difference.
6 (b) For purposes of the calculation in subsection (a),
7 the minimum monthly retirement benefit amount is the sum of
8 $25 for each year of service credit, up to a maximum of 30
9 years of service. For a person receiving a supplemental
10 payment under this Section, the $25 shall be increased by 3%
11 on the later of (i) January 1, 2001 or (ii) the January 1
12 occurring on or next after the first anniversary of the
13 granting of the supplemental payment, and by 3% of the
14 current amount on each January 1 following the initial
15 increase.
16 (c) The change to this Section made by this amendatory
17 Act of the 91st General Assembly applies to all persons
18 receiving a retirement annuity under this Article, without
19 regard to whether or not employment terminated prior to the
20 effective date of this amendatory Act Section.
21 (Source: P.A. 89-616, eff. 8-9-96.)
22 (40 ILCS 5/15-136.4)
23 Sec. 15-136.4. Retirement and Survivor Benefits Under
24 Portable Benefit Package.
25 (a) This Section 15-136.4 describes the form of annuity
26 and survivor benefits available to a participant who has
27 elected the portable benefit package and has completed the
28 one-year waiting period required under subsection (e) of
29 Section 15-134.5. For purposes of this Section, the term
30 "eligible spouse" means the husband or wife of a participant
31 to whom the participant is married on the date the
32 participant's retirement annuity begins, provided however,
33 that if the participant should die prior to the commencement
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1 of retirement annuity benefits, then "eligible spouse" means
2 the husband or wife, if any, to whom the participant was
3 married throughout the one-year period preceding the date of
4 his or her death.
5 (b) This subsection (b) describes the normal form of
6 annuity payable to a participant subject to this Section
7 15-136.4. If the participant is unmarried on the date his or
8 her annuity payments commence, then the annuity payments
9 shall be made in the form of a single-life annuity as
10 described in Section 15-118. If the participant is married
11 on the date his or her annuity payments commence, then the
12 annuity payments shall be paid in the form of a qualified
13 joint and survivor annuity that is the actuarial equivalent
14 of the single-life annuity. Under the "qualified joint and
15 survivor annuity", a reduced amount shall be paid to the
16 participant for his or her lifetime and his or her eligible
17 spouse, if surviving at the participant's death, shall be
18 entitled to receive thereafter a lifetime survivorship
19 annuity in a monthly amount equal to 50% of the reduced
20 monthly amount that was payable to the participant. The last
21 payment of a qualified joint and survivor annuity shall be
22 made as of the first day of the month in which the death of
23 the survivor occurs.
24 (c) Instead of the normal form of annuity that would be
25 paid under subsection (b), a participant may elect in writing
26 within the 90-day period prior to the date his or her annuity
27 payments commence to waive the normal form of annuity payment
28 and receive an optional form of annuity as described in
29 subsection (h). If the participant is married and elects an
30 optional form of annuity under subsection (h) other than a
31 joint and survivor annuity with the eligible spouse
32 designated as the contingent annuitant, then such election
33 shall require the consent of his or her eligible spouse in
34 the manner described in subsection (d). At any time during
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1 the 90-day period preceding the date the participant's
2 annuity commences, the participant may revoke the optional
3 form elected under this subsection (c) and reinstate coverage
4 under the qualified joint and survivor annuity without the
5 spouse's consent, but an election to revoke the optional form
6 elected and elect a new optional form or designate a
7 different contingent annuitant shall not be effective without
8 the eligible spouse's consent.
9 (d) The eligible spouse's consent to any election made
10 pursuant to this Section that requires the eligible spouse's
11 consent shall be in writing and shall acknowledge the effect
12 of the consent. In addition, the eligible spouse's signature
13 on the written consent must be witnessed by a notary public.
14 The eligible spouse's consent need not be obtained if the
15 system is satisfied that there is no eligible spouse, that
16 the eligible spouse cannot be located, or because of any
17 other relevant circumstances. An eligible spouse's consent
18 under this Section is valid only with respect to the
19 specified optional form of payment and, if applicable,
20 contingent annuitant designated by the participant. If the
21 optional form of payment or the contingent annuitant is
22 subsequently changed (other than by a revocation of the
23 optional form and reinstatement of the qualified joint and
24 survivor annuity), a new consent by the eligible spouse is
25 required. The eligible spouse's consent to an election made
26 by a participant pursuant to this Section, once made, may not
27 be revoked by the eligible spouse.
28 (e) Within a reasonable period of time preceding the
29 date a participant's annuity commences, a participant shall
30 be supplied with a written explanation of (1) the terms and
31 conditions of the normal form single-life annuity and
32 qualified joint and survivor annuity, (2) the participant's
33 right to elect a single-life annuity or an optional form of
34 payment under subsection (h) subject to his or her eligible
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1 spouse's consent, if applicable, and (3) the participant's
2 right to reinstate coverage under the qualified joint and
3 survivor annuity prior to his or her annuity commencement
4 date by revoking an election of an optional form of benefit
5 under subsection (h).
6 (f) If a married participant with at least 1.5 years 5
7 years of service dies prior to commencing retirement annuity
8 payments and prior to taking a refund under Section 15-154,
9 his or her eligible spouse is entitled to receive a
10 pre-retirement survivor annuity, if there is not then in
11 effect a waiver of the pre-retirement survivor annuity. The
12 pre-retirement survivor annuity payable under this subsection
13 shall be a monthly annuity payable for the eligible spouse's
14 life, commencing as of the beginning of the month next
15 following the later of the date of the participant's death or
16 the date the participant would have first met the eligibility
17 requirements for retirement, and continuing through the
18 beginning of the month in which the death of the eligible
19 spouse occurs. The monthly amount payable to the spouse
20 under the pre-retirement survivor annuity shall be equal to
21 the monthly amount that would be payable as a survivor
22 annuity under the qualified joint and survivor annuity
23 described in subsection (b) if: (1) in the case of a
24 participant who dies on or after the date on which the
25 participant has met the eligibility requirements for
26 retirement, the participant had retired with an immediate
27 qualified joint and survivor annuity on the day before the
28 participant's date of death; or (2) in the case of a
29 participant who dies before the earliest date on which the
30 participant would have met the eligibility requirements for
31 retirement age, the participant had separated from service on
32 the date of death, survived to the earliest retirement age
33 based on service prior to his or her death, retired with an
34 immediate qualified joint and survivor annuity at the
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1 earliest retirement age, and died on the day after the day on
2 which the participant would have attained the earliest
3 retirement age.
4 (g) A married participant who has not retired may elect
5 at any time to waive the pre-retirement survivor annuity
6 described in subsection (f). Any such election shall require
7 the consent of the participant's eligible spouse in the
8 manner described in subsection (e). A waiver of the
9 pre-retirement survivor annuity shall increase the lump sum
10 death benefit payable under subsection (b) of Section 15-141.
11 Prior to electing any waiver of the pre-retirement survivor
12 annuity, the participant shall be provided with a written
13 explanation of (1) the terms and conditions of the
14 pre-retirement survivor annuity and the death benefits
15 payable from the system both with and without the
16 pre-retirement survivor annuity, (2) the participant's right
17 to elect a waiver of the pre-retirement survivor annuity
18 coverage subject to his or her spouse's consent, and (3) the
19 participant's right to reinstate pre-retirement survivor
20 annuity coverage at any time by revoking a prior waiver of
21 such coverage.
22 (h) By filing a timely election with the system, a
23 participant who will be eligible to receive a retirement
24 annuity under this Section may waive the normal form of
25 annuity payment described in subsection (b), subject to
26 obtaining the consent of his or her eligible spouse, if
27 applicable, and elect to receive any one of the following
28 optional annuity forms:
29 (1) Joint and Survivor Annuity Options: The
30 participant may elect to receive a reduced annuity
31 payable for his or her life and to have a lifetime
32 survivorship annuity in a monthly amount equal to 50%,
33 75%, or 100% (as elected by the participant) of that
34 reduced monthly amount, to be paid after the
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1 participant's death to his or her contingent annuitant,
2 if the contingent annuitant is alive at the time of the
3 participant's death.
4 (2) Single-Life Annuity Option (optional for
5 married participants). The participant may elect to
6 receive a single-life annuity payable for his or her life
7 only.
8 All optional forms shall be in an amount that is the
9 actuarial equivalent of the single-life annuity.
10 For the purposes of this Section, the term "contingent
11 annuitant" means the beneficiary who is designated by a
12 participant at the time the participant elects a joint and
13 survivor annuity to receive the lifetime survivorship annuity
14 in the event the beneficiary survives the participant at the
15 participant's death.
16 (i) Under no circumstances may an option be elected,
17 changed, or revoked after the date the participant's
18 retirement annuity commences.
19 (j) An election made pursuant to subsection (h) shall
20 become inoperative if the participant or the contingent
21 annuitant dies before the date the participant's annuity
22 payments commence, or if the eligible spouse's consent is
23 required and not given.
24 (k) (Blank). For purposes of applying the provisions of
25 Section 20-123 of this Code, the portable benefit package
26 shall be treated as if it were provided by a participating
27 system that has no survivor's annuity benefit.
28 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
29 (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
30 Sec. 15-139. Retirement annuities; cancellation;
31 suspended during employment.
32 (a) If an annuitant returns to employment for an
33 employer within 60 days after the beginning of the retirement
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1 annuity payment period, the retirement annuity shall be
2 cancelled, and the annuitant shall refund to the System the
3 total amount of the retirement annuity payments which he or
4 she received. If the retirement annuity is cancelled, the
5 participant shall continue to participate in the System.
6 (b) If an annuitant retires prior to age 60 and receives
7 or becomes entitled to receive during any month compensation
8 in excess of the monthly retirement annuity (including any
9 automatic annual increases) for services performed after the
10 date of retirement for any employer under this System, the
11 State Employees' Retirement System of Illinois, or the
12 Teachers' Retirement System of the State of Illinois, that
13 portion of the monthly retirement annuity provided by
14 employer contributions shall not be payable.
15 If an annuitant retires at age 60 or over and receives or
16 becomes entitled to receive during any academic year
17 compensation in excess of the difference between his or her
18 highest annual earnings prior to retirement and his or her
19 annual retirement annuity computed under Rule 1, Rule 2, Rule
20 3 or Rule 4 of Section 15-136, or under Section 15-136.4, for
21 services performed after the date of retirement for any
22 employer under this System, that portion of the monthly
23 retirement annuity provided by employer contributions shall
24 be reduced by an amount equal to the compensation that
25 exceeds such difference.
26 However, any remuneration received for serving as a
27 member of the Illinois Educational Labor Relations Board
28 shall be excluded from "compensation" for the purposes of
29 this subsection (b), and serving as a member of the Illinois
30 Educational Labor Relations Board shall not be deemed to be a
31 return to employment for the purposes of this Section. This
32 provision applies without regard to whether service was
33 terminated prior to the effective date of this amendatory Act
34 of 1991.
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1 (c) If an employer certifies that an annuitant has been
2 reemployed on a permanent and continuous basis or in a
3 position in which the annuitant is expected to serve for at
4 least 9 months, the annuitant shall resume his or her status
5 as a participating employee and shall be entitled to all
6 rights applicable to participating employees upon filing with
7 the board an election to forego all annuity payments during
8 the period of reemployment. Upon subsequent retirement, the
9 retirement annuity shall consist of the annuity which was
10 terminated by the reemployment, plus the additional
11 retirement annuity based upon service granted during the
12 period of reemployment, but the combined retirement annuity
13 shall not exceed the maximum annuity applicable on the date
14 of the last retirement.
15 The total service and earnings credited before and after
16 the initial date of retirement shall be considered in
17 determining eligibility of the employee or the employee's
18 beneficiary to benefits under this Article, and in
19 calculating final rate of earnings.
20 In determining the death benefit payable to a beneficiary
21 of an annuitant who again becomes a participating employee
22 under this Section, accumulated normal and additional
23 contributions shall be considered as the sum of the
24 accumulated normal and additional contributions at the date
25 of initial retirement and the accumulated normal and
26 additional contributions credited after that date, less the
27 sum of the annuity payments received by the annuitant.
28 The survivors insurance benefits provided under Section
29 15-145 shall not be applicable to an annuitant who resumes
30 his or her status as a participating employee, unless the
31 annuitant, at the time of initial retirement, has a survivors
32 insurance beneficiary who could qualify for such benefits.
33 If the annuitant's employment is terminated because of
34 circumstances other than death before 9 months from the date
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1 of reemployment, the provisions of this Section regarding
2 resumption of status as a participating employee shall not
3 apply. The normal and survivors insurance contributions which
4 are deducted during this period shall be refunded to the
5 annuitant without interest, and subsequent benefits under
6 this Article shall be the same as those which were applicable
7 prior to the date the annuitant resumed employment.
8 The amendments made to this Section by this amendatory
9 Act of the 91st General Assembly apply without regard to
10 whether the annuitant was in service on or after the
11 effective date of this amendatory Act.
12 (Source: P.A. 86-1488.)
13 (40 ILCS 5/15-140) (from Ch. 108 1/2, par. 15-140)
14 Sec. 15-140. Reversionary annuities. A participant in
15 the traditional benefit package entitled to a retirement
16 annuity may, prior to retirement, elect to take a reduced
17 retirement annuity and provide with the actuarial value of
18 the reduction, a reversionary annuity to a dependent
19 beneficiary, subject to the following conditions: (1) the
20 participant's written notice of election to provide such
21 annuity is received by the board at least 30 days before the
22 retirement annuity payment period begins, and (2) the amount
23 of the reversionary annuity is not less than $10 per month,
24 and (3) the reversionary annuity is payable only if the
25 participant dies after retirement.
26 The participant may revoke the election by filing a
27 written notice of revocation with the board. The
28 beneficiary's death prior to retirement of the participant
29 shall constitute a revocation of the election.
30 The amount of the reversionary annuity shall be that
31 specified in the participant's notice of election, but not
32 more than the amount which when added to the survivors
33 annuity payable to the dependent beneficiary, would equal the
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1 participant's reduced retirement annuity. The participant
2 shall specify in the notice of election whether the full
3 retirement annuity is to be resumed or the reduced retirement
4 annuity is to be continued, in the event the beneficiary
5 predeceases the annuitant.
6 The reversionary annuity payment period shall begin on
7 the day following the annuitant's death. A reversionary
8 annuity shall not be payable if the beneficiary predeceases
9 the annuitant.
10 (Source: P.A. 84-1028.)
11 (40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
12 Sec. 15-141. Death benefits - Death of participant.
13 (a) The beneficiary of a participant under the
14 traditional benefit package is entitled to a death benefit
15 equal to the sum of (1) the employee's accumulated normal and
16 additional contributions on the date of death, (2) the
17 employee's accumulated survivors insurance contributions on
18 the date of death, if a survivors insurance benefit is not
19 payable, (3) an amount equal to the employee's final rate of
20 earnings, but not more than $5,000 if (i) the beneficiary,
21 under rules of the board, was dependent upon the participant,
22 (ii) the participant was a participating employee immediately
23 prior to his or her death, and (iii) a survivors insurance
24 benefit is not payable, and (4) $2,500 if (i) the beneficiary
25 was not dependent upon the participant, (ii) the participant
26 was a participating employee immediately prior to his or her
27 death, and (iii) a survivors insurance benefit is not
28 payable.
29 (b) If the participant has elected to participate in the
30 portable benefit package and has completed the one-year
31 waiting period required under subsection (e) of Section
32 15-134.5, the death benefit shall be equal to the employee's
33 accumulated normal and additional contributions on the date
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1 of death plus, if the employee died with 1.5 or 5 or more
2 years of service for employment as defined in Section
3 15-113.1, employer contributions in an amount equal to the
4 sum of the accumulated normal and additional contributions;
5 except that if a pre-retirement survivor annuity is payable
6 under Section 15-136.4, the death benefit payable under this
7 paragraph shall be reduced, but to not less than zero, by the
8 actuarial value of the benefit payable to the surviving
9 spouse. The beneficiary of the participant must be his or
10 her spouse unless the spouse has consented to the designation
11 of another beneficiary in the manner described in subsection
12 (d) of Section 15-136.4.
13 (c) If payments are made under any State or Federal
14 Workers' Compensation or Occupational Diseases Law because of
15 the death of an employee, the portion of the death benefit
16 payable from employer contributions shall be reduced by the
17 total amount of the payments.
18 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
19 (40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142)
20 Sec. 15-142. Death benefits - Death of annuitant. Upon
21 the death of an annuitant receiving a retirement annuity or
22 disability retirement annuity, the annuitant's beneficiary
23 shall, if a survivor's insurance benefit is not payable under
24 Section 15-145 and an a pre-retirement survivor annuity is
25 not payable under Section 15-136.4, be entitled to a death
26 benefit equal to the greater of the following: (1) the
27 excess, if any, of the sum of the accumulated normal,
28 survivors insurance, and additional contributions as of the
29 date of retirement or the date the disability retirement
30 annuity began, whichever is earlier, over the sum of all
31 annuity payments made prior to the date of death, or (2)
32 $1,000.
33 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
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1 (40 ILCS 5/15-144) (from Ch. 108 1/2, par. 15-144)
2 Sec. 15-144. Beneficiary annuities. This Section
3 applies only to the death benefits of persons who became
4 participants before August 22, 1997 (the effective date of
5 Public Act 90-511).
6 If a deceased participant has specified in a written
7 notice on file with the board prior to his or her death, or
8 if the participant has not so specified, but the beneficiary
9 specifies in the application for the death benefit that the
10 benefit be paid as an annuity or as a designated cash payment
11 plus an annuity, it shall be paid in the manner thus
12 specified, unless the annuity is less than $10 per month, in
13 which case the death benefit shall be paid in a single cash
14 sum. If the death benefit is paid as an annuity, the
15 beneficiary may elect to take an amount not in excess of $500
16 in a single cash sum. The annuity payable to a beneficiary
17 shall be the actuarial equivalent of the death benefit,
18 determined as of the participant's date of death, on the
19 basis of the age of the beneficiary at that time.
20 The beneficiary annuity payment period shall begin on the
21 day following the death of the deceased and shall terminate
22 on the date of the beneficiary's death. If the beneficiary
23 may receive the death benefit in a single cash sum, but
24 elects to receive an annuity, he or she may, within one year
25 after the death of the participant or annuitant, revoke this
26 election and receive in a single cash sum the excess of the
27 amount of the death benefit upon which the annuity was based
28 over the sum of the annuity payments received.
29 (Source: P.A. 83-1440.)
30 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
31 Sec. 15-145. Survivors insurance benefits; conditions
32 and amounts.
33 (a) The survivors insurance benefits provided under this
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1 Section shall be payable to the eligible survivors of a
2 participant covered under the traditional benefit package
3 upon the death of (1) a participating employee with at least
4 1 1/2 years of service, (2) a participant who terminated
5 employment with at least 10 years of service, and (3) an
6 annuitant in receipt of a retirement annuity or disability
7 retirement annuity under this Article.
8 Service under the State Employees' Retirement System of
9 Illinois, the Teachers' Retirement System of the State of
10 Illinois and the Public School Teachers' Pension and
11 Retirement Fund of Chicago shall be considered in determining
12 eligibility for survivors benefits under this Section.
13 If by law, a function of a governmental unit, as defined
14 by Section 20-107, is transferred in whole or in part to an
15 employer, and an employee transfers employment from this
16 governmental unit to such employer within 6 months after the
17 transfer of this function, the service credits in the
18 governmental unit's retirement system which have been
19 validated under Section 20-109 shall be considered in
20 determining eligibility for survivors benefits under this
21 Section.
22 (b) A surviving spouse of a deceased participant, or of
23 a deceased annuitant who did not take a refund or additional
24 annuity consisting of accumulated survivors insurance
25 contributions who had a survivors insurance beneficiary at
26 the time of retirement, shall receive a survivors annuity of
27 30% of the final rate of earnings. Payments shall begin on
28 the day following the participant's or annuitant's death or
29 the date the surviving spouse attains age 50, whichever is
30 later, and continue until the death of the surviving spouse.
31 The annuity shall be payable to the surviving spouse prior to
32 attainment of age 50 if the surviving spouse has in his or
33 her care a deceased participant's or annuitant's dependent
34 unmarried child under age 18 (under age 22 if a full-time
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1 student) who is eligible for a survivors annuity. Remarriage
2 of a surviving spouse prior to attainment of age 55 that
3 occurs before the effective date of this amendatory Act of
4 the 91st General Assembly shall disqualify him or her for the
5 receipt of a survivors annuity.
6 (c) Each dependent unmarried child under age 18 (under
7 age 22 if a full-time student) of a deceased participant, or
8 of a deceased annuitant who did not take a refund or
9 additional annuity consisting of accumulated survivors
10 insurance contributions who had a survivors insurance
11 beneficiary at the time of his or her retirement, shall
12 receive a survivors annuity equal to the sum of (1) 20% of
13 the final rate of earnings, and (2) 10% of the final rate of
14 earnings divided by the number of children entitled to this
15 benefit. Payments shall begin on the day following the
16 participant's or annuitant's death and continue until the
17 child marries, dies, or attains age 18 (age 22 if a full-time
18 student). If the child is in the care of a surviving spouse
19 who is eligible for survivors insurance benefits, the child's
20 benefit shall be paid to the surviving spouse.
21 Each unmarried child over age 18 of a deceased
22 participant or of a deceased annuitant who had a survivor's
23 insurance beneficiary at the time of his or her retirement,
24 and who was dependent upon the participant or annuitant by
25 reason of a physical or mental disability which began prior
26 to the date the child attained age 18 (age 22 if a full-time
27 student), shall receive a survivor's annuity equal to the sum
28 of (1) 20% of the final rate of earnings, and (2) 10% of the
29 final rate of earnings divided by the number of children
30 entitled to survivors benefits. Payments shall begin on the
31 day following the participant's or annuitant's death and
32 continue until the child marries, dies, or is no longer
33 disabled. If the child is in the care of a surviving spouse
34 who is eligible for survivors insurance benefits, the child's
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1 benefit may be paid to the surviving spouse. For the
2 purposes of this Section, disability means inability to
3 engage in any substantial gainful activity by reason of any
4 medically determinable physical or mental impairment that can
5 be expected to result in death or that has lasted or can be
6 expected to last for a continuous period of at least one
7 year.
8 (d) Each dependent parent of a deceased participant, or
9 of a deceased annuitant who did not take a refund or
10 additional annuity consisting of accumulated survivors
11 insurance contributions who had a survivors insurance
12 beneficiary at the time of his or her retirement, shall
13 receive a survivors annuity equal to the sum of (1) 20% of
14 final rate of earnings, and (2) 10% of final rate of earnings
15 divided by the number of parents who qualify for the benefit.
16 Payments shall begin when the parent reaches age 55 or the
17 day following the participant's or annuitant's death,
18 whichever is later, and continue until the parent dies.
19 Remarriage of a parent prior to attainment of age 55 shall
20 disqualify the parent for the receipt of a survivors annuity.
21 (e) In addition to the survivors annuity provided above,
22 each survivors insurance beneficiary shall, upon death of the
23 participant or annuitant, receive a lump sum payment of
24 $1,000 divided by the number of such beneficiaries.
25 (f) The changes made in this Section by Public Act
26 81-712 pertaining to survivors annuities in cases of
27 remarriage prior to age 55 shall apply to each survivors
28 insurance beneficiary who remarries after June 30, 1979,
29 regardless of the date that the participant or annuitant
30 terminated his employment or died.
31 The change made to this Section by this amendatory Act of
32 the 91st General Assembly, pertaining to remarriage prior to
33 age 55, applies without regard to whether the deceased
34 participant or annuitant was in service on or after the
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1 effective date of this amendatory Act of the 91st General
2 Assembly.
3 (g) On January 1, 1981, any person who was receiving a
4 survivors annuity on or before January 1, 1971 shall have the
5 survivors annuity then being paid increased by 1% for each
6 full year which has elapsed from the date the annuity began.
7 On January 1, 1982, any survivor whose annuity began after
8 January 1, 1971, but before January 1, 1981, shall have the
9 survivor's annuity then being paid increased by 1% for each
10 year which has elapsed from the date the survivor's annuity
11 began. On January 1, 1987, any survivor who began receiving a
12 survivor's annuity on or before January 1, 1977, shall have
13 the monthly survivor's annuity increased by $1 for each full
14 year which has elapsed since the date the survivor's annuity
15 began.
16 (h) If the sum of the lump sum and total monthly
17 survivor benefits payable under this Section upon the death
18 of a participant amounts to less than the sum of the death
19 benefits payable under items (2) and (3) of Section 15-141,
20 the difference shall be paid in a lump sum to the beneficiary
21 of the participant who is living on the date that this
22 additional amount becomes payable.
23 (i) If the sum of the lump sum and total monthly
24 survivor benefits payable under this Section upon the death
25 of an annuitant receiving a retirement annuity or disability
26 retirement annuity amounts to less than the death benefit
27 payable under Section 15-142, the difference shall be paid to
28 the beneficiary of the annuitant who is living on the date
29 that this additional amount becomes payable.
30 (j) Effective on the later of (1) January 1, 1990, or
31 (2) the January 1 on or next after the date on which the
32 survivor annuity begins, if the deceased member died while
33 receiving a retirement annuity, or in all other cases the
34 January 1 nearest the first anniversary of the date the
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1 survivor annuity payments begin, every survivors insurance
2 beneficiary shall receive an increase in his or her monthly
3 survivors annuity of 3%. On each January 1 after the initial
4 increase, the monthly survivors annuity shall be increased by
5 3% of the total survivors annuity provided under this
6 Article, including previous increases provided by this
7 subsection. Such increases shall apply to the survivors
8 insurance beneficiaries of each participant and annuitant,
9 whether or not the employment status of the participant or
10 annuitant terminates before the effective date of this
11 amendatory Act of 1990. This subsection (j) also applies to
12 persons receiving a survivor annuity under the portable
13 benefit package.
14 (k) If the Internal Revenue Code of 1986, as amended,
15 requires that the survivors benefits be payable at an age
16 earlier than that specified in this Section the benefits
17 shall begin at the earlier age, in which event, the
18 survivor's beneficiary shall be entitled only to that amount
19 which is equal to the actuarial equivalent of the benefits
20 provided by this Section.
21 (l) The changes made to this Section and Section 15-131
22 by this amendatory Act of 1997, relating to benefits for
23 certain unmarried children who are full-time students under
24 age 22, apply without regard to whether the deceased member
25 was in service on or after the effective date of this
26 amendatory Act of 1997. These changes do not authorize the
27 repayment of a refund or a re-election of benefits, and any
28 benefit or increase in benefits resulting from these changes
29 is not payable retroactively for any period before the
30 effective date of this amendatory Act of 1997.
31 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
32 (40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
33 Sec. 15-146. Survivors insurance benefits - Minimum
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1 amounts.
2 (a) The minimum total survivors annuity payable on
3 account of the death of a participant shall be 50% of the
4 retirement annuity which would have been provided under Rule
5 1, Rule 2, or Rule 3 of Section 15-136 upon the participant's
6 attainment of the minimum age at which the penalty for early
7 retirement would not be applicable or the date of the
8 participant's death, whichever is later, on the basis of
9 credits earned prior to the time of death.
10 (b) The minimum total survivors annuity payable on
11 account of the death of an annuitant shall be 50% of the
12 retirement annuity which is payable under Section 15-136 at
13 the time of death or 50% of the disability retirement annuity
14 payable under Section 15-153.2. This minimum survivors
15 annuity shall apply to each participant and annuitant who
16 dies after September 16, 1979, whether or not his or her
17 employee status terminates before or after that date.
18 (c) If an annuitant has elected a reversionary annuity,
19 the retirement annuity referred to in this Section is that
20 which would have been payable had such election not been
21 filed.
22 (d) Beginning January 1, 2001, any person who is
23 receiving a survivors annuity under this Article which, after
24 inclusion of all one-time and automatic annual increases to
25 which the person is entitled, is less than the sum of $25 for
26 each year (up to a maximum of 30 years) of the deceased
27 member's service credit, shall be entitled to a monthly
28 supplemental payment equal to the difference. For a person
29 receiving a supplemental payment under this Section, the $25
30 shall be increased by 3% on the January 1 occurring on or
31 next after the first anniversary of the granting of the
32 supplemental payment, and by 3% of the current amount on each
33 January 1 following the initial increase.
34 If 2 or more persons are receiving survivors annuities
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1 based on the same deceased member, the calculation of the
2 supplemental payment under this subsection shall be based on
3 the total of those annuities and divided pro rata. The
4 supplemental payment is not subject to any limitation on the
5 maximum amount of the annuity and shall not be included in
6 the calculation of any automatic annual increase under
7 Section 15-145.
8 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
9 (40 ILCS 5/15-148) (from Ch. 108 1/2, par. 15-148)
10 Sec. 15-148. Survivors insurance benefits - General
11 provisions. The survivors annuity is payable monthly. Any
12 annuity due but unpaid upon the death of the annuitant, shall
13 be paid to the annuitant's estate.
14 A person who becomes entitled to more than one survivors
15 insurance benefit because of the death of 2 or more persons
16 shall receive only the largest of the benefits; except that
17 this limitation does not apply to a survivors insurance
18 beneficiary who is entitled to a survivor's annuity by reason
19 of a mental or physical disability.
20 A survivors insurance beneficiary or the personal
21 representative of the estate of a deceased survivors
22 insurance beneficiary or the personal representative of a
23 survivors insurance beneficiary who is under a legal
24 disability may waive the right to receive survivorship
25 benefits, provided written notice of the waiver is given by
26 the beneficiary or representative to the board within 6
27 months after the death of the participant or annuitant and
28 before any payment is made pursuant to an application filed
29 by such person.
30 (Source: P.A. 83-1440.)
31 (40 ILCS 5/15-153.3) (from Ch. 108 1/2, par. 15-153.3)
32 Sec. 15-153.3. Automatic increase in disability benefit.
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1 Each disability benefit payable under Section 15-150 and
2 calculated under Section 15-153 or 15-153.2 that has not yet
3 received an initial increase under this Section shall be
4 increased by 0.25% of the monthly disability benefit
5 multiplied by the number of full months that have elapsed
6 since the benefit began 7% of the original fixed amount of
7 such benefit on January 1, 2001 1991 or the January 1 on or
8 next following the fourth anniversary of the granting of the
9 benefit, whichever occurs later.
10 On each January 1 following the initial 7% increase under
11 this Section, the disability benefit shall be increased by 3%
12 of the current amount of the benefit, including prior
13 increases under this Article.
14 The changes made to this Section by this amendatory Act
15 of the 91st General Assembly apply without regard to whether
16 the benefit recipient was in service on ar after the
17 effective date of this amendatory Act.
18 (Source: P.A. 90-766, eff. 8-14-98.)
19 (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
20 Sec. 15-154. Refunds.
21 (a) A participant whose status as an employee is
22 terminated, regardless of cause, or who has been on lay off
23 status for more than 120 days, and who is not on leave of
24 absence, is entitled to a refund of contributions upon
25 application; except that not more than one such refund
26 application may be made during any academic year.
27 Except as set forth in subsections (a-1) and (a-2), the
28 refund shall be the sum of the accumulated normal, additional
29 and survivors insurance contributions, less the amount of
30 interest credited on these contributions each year in excess
31 of 4 1/2% of the amount on which interest was calculated.
32 (a-1) A person who elects, in accordance with the
33 requirements of Section 15-134.5, to participate in the
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1 portable benefit package and who becomes a participating
2 employee under that retirement program upon the conclusion of
3 the one-year waiting period applicable to the portable
4 benefit package election shall have his or her refund
5 calculated in accordance with the provisions of subsection
6 (a-2).
7 (a-2) The refund payable to a participant described in
8 subsection (a-1) shall be the sum of the participant's
9 accumulated normal and additional contributions, as defined
10 in Sections 15-116 and 15-117. If the participant terminates
11 with 5 or more years of service for employment as defined in
12 Section 15-113.1, he or she shall also be entitled to a
13 distribution of employer contributions in an amount equal to
14 the sum of the accumulated normal and additional
15 contributions, as defined in Sections 15-116 and 15-117.
16 (b) Upon acceptance of a refund, the participant
17 forfeits all accrued rights and credits in the System, and if
18 subsequently reemployed, the participant shall be considered
19 a new employee subject to all the qualifying conditions for
20 participation and eligibility for benefits applicable to new
21 employees. If such person again becomes a participating
22 employee and continues as such for 2 years, or is employed by
23 an employer and participates for at least 2 years in the
24 Federal Civil Service Retirement System, all such rights,
25 credits, and previous status as a participant shall be
26 restored upon repayment of the amount of the refund, together
27 with compound interest thereon from the date the refund was
28 received to the date of repayment at the rate of 6% per annum
29 through August 31, 1982, and at the effective rates after
30 that date.
31 (c) If a participant covered under the traditional
32 transitional benefit package has made survivors insurance
33 contributions, but has no survivors insurance beneficiary
34 upon retirement, he or she shall be entitled to elect a
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1 refund of the accumulated survivors insurance contributions,
2 or to elect an additional annuity the value of which is equal
3 to the accumulated survivors insurance contributions. This
4 election must be made prior to the date the person's
5 retirement annuity is approved by the Board of Trustees.
6 (d) A participant, upon application, is entitled to a
7 refund of his or her accumulated additional contributions
8 attributable to the additional contributions described in the
9 last sentence of subsection (c) of Section 15-157. Upon the
10 acceptance of such a refund of accumulated additional
11 contributions, the participant forfeits all rights and
12 credits which may have accrued because of such contributions.
13 (e) A participant who terminates his or her employee
14 status and elects to waive service credit under Section
15 15-154.2, is entitled to a refund of the accumulated normal,
16 additional and survivors insurance contributions, if any,
17 which were credited the participant for this service, or to
18 an additional annuity the value of which is equal to the
19 accumulated normal, additional and survivors insurance
20 contributions, if any; except that not more than one such
21 refund application may be made during any academic year. Upon
22 acceptance of this refund, the participant forfeits all
23 rights and credits accrued because of this service.
24 (f) If a police officer or firefighter receives a
25 retirement annuity under Rule 1 or 3 of Section 15-136, he or
26 she shall be entitled at retirement to a refund of the
27 difference between his or her accumulated normal
28 contributions and the normal contributions which would have
29 accumulated had such person filed a waiver of the retirement
30 formula provided by Rule 4 of Section 15-136.
31 (g) If, at the time of retirement, a participant would
32 be entitled to a retirement annuity under Rule 1, 2, 3 or 4
33 of Section 15-136, or under Section 15-136.4, that exceeds
34 the maximum specified in clause (1) of subsection (c) of
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1 Section 15-136, he or she shall be entitled to a refund of
2 the employee contributions, if any, paid under Section 15-157
3 after the date upon which continuance of such contributions
4 would have otherwise caused the retirement annuity to exceed
5 this maximum, plus compound interest at the effective rates.
6 (Source: P.A. 90-448, eff. 8-16-97; 90-576, eff. 3-31-98;
7 90-766, eff. 8-14-98.)
8 (40 ILCS 5/15-158.2)
9 Sec. 15-158.2. Self-managed plan.
10 (a) Purpose. The General Assembly finds that it is
11 important for colleges and universities to be able to attract
12 and retain the most qualified employees and that in order to
13 attract and retain these employees, colleges and universities
14 should have the flexibility to provide a defined contribution
15 plan as an alternative for eligible employees who elect not
16 to participate in a defined benefit retirement program
17 provided under this Article. Accordingly, the State
18 Universities Retirement System is hereby authorized to
19 establish and administer a self-managed plan, which shall
20 offer participating employees the opportunity to accumulate
21 assets for retirement through a combination of employee and
22 employer contributions that may be invested in mutual funds,
23 collective investment funds, or other investment products and
24 used to purchase annuity contracts, either fixed or variable
25 or a combination thereof. The plan must be qualified under
26 the Internal Revenue Code of 1986.
27 (b) Adoption by employers. Each employer subject to
28 this Article may elect to adopt the self-managed plan
29 established under this Section; this election is irrevocable.
30 An employer's election to adopt the self-managed plan makes
31 available to the eligible employees of that employer the
32 elections described in Section 15-134.5.
33 The State Universities Retirement System shall be the
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1 plan sponsor for the self-managed plan and shall prepare a
2 plan document and prescribe such rules and procedures as are
3 considered necessary or desirable for the administration of
4 the self-managed plan. Consistent with its fiduciary duty to
5 the participants and beneficiaries of the self-managed plan,
6 the Board of Trustees of the System may delegate aspects of
7 plan administration as it sees fit to companies authorized to
8 do business in this State, to the employers, or to a
9 combination of both.
10 (c) Selection of service providers and funding vehicles.
11 The System, in consultation with the employers, shall solicit
12 proposals to provide administrative services and funding
13 vehicles for the self-managed plan from insurance and annuity
14 companies and mutual fund companies, banks, trust companies,
15 or other financial institutions authorized to do business in
16 this State. In reviewing the proposals received and
17 approving and contracting with no fewer than 2 and no more
18 than 7 companies, at least 2 of which must be insurance and
19 annuity companies, the Board of Trustees of the System shall
20 consider, among other things, the following criteria:
21 (1) the nature and extent of the benefits that
22 would be provided to the participants;
23 (2) the reasonableness of the benefits in relation
24 to the premium charged;
25 (3) the suitability of the benefits to the needs
26 and interests of the participating employees and the
27 employer;
28 (4) the ability of the company to provide benefits
29 under the contract and the financial stability of the
30 company; and
31 (5) the efficacy of the contract in the recruitment
32 and retention of employees.
33 The System, in consultation with the employers, shall
34 periodically review each approved company. A company may
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1 continue to provide administrative services and funding
2 vehicles for the self-managed plan only so long as it
3 continues to be an approved company under contract with the
4 Board.
5 (d) Employee Direction. Employees who are participating
6 in the program must be allowed to direct the transfer of
7 their account balances among the various investment options
8 offered, subject to applicable contractual provisions. The
9 participant shall not be deemed a fiduciary by reason of
10 providing such investment direction. A person who is a
11 fiduciary shall not be liable for any loss resulting from
12 such investment direction and shall not be deemed to have
13 breached any fiduciary duty by acting in accordance with that
14 direction. Neither the System nor the employer guarantees
15 any of the investments in the employee's account balances.
16 (e) Participation. An employee eligible to participate
17 in the self-managed plan must make a written election in
18 accordance with the provisions of Section 15-134.5 and the
19 procedures established by the System. Participation in the
20 self-managed plan by an electing employee shall begin on the
21 first day of the first pay period following the later of the
22 date the employee's election is filed with the System or the
23 effective date as of which the employee's employer begins to
24 offer participation in the self-managed plan. Employers may
25 not make the self-managed plan available earlier than January
26 1, 1998. An employee's participation in any other retirement
27 program administered by the System under this Article shall
28 terminate on the date that participation in the self-managed
29 plan begins.
30 An employee who has elected to participate in the
31 self-managed plan under this Section must continue
32 participation while employed in an eligible position, and may
33 not participate in any other retirement program administered
34 by the System under this Article while employed by that
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1 employer or any other employer that has adopted the
2 self-managed plan, unless the self-managed plan is terminated
3 in accordance with subsection (i).
4 Participation in the self-managed plan under this Section
5 shall constitute membership in the State Universities
6 Retirement System.
7 A participant under this Section shall be entitled to the
8 benefits of Article 20 of this Code. modified to reflect the
9 following principles:
10 (1) The amount of any retirement annuities payable
11 under this Section depend solely on the value of the
12 participant's vested account balances and are not subject
13 to a maximum annuity benefit limitation or any adjustment
14 pursuant to the proportional retirement annuity
15 provisions of Article 20. If a participant in the
16 self-managed plan under this Section elects to apply the
17 provisions of Article 20, the dollar amount of the
18 proportional retirement annuity payable from the System
19 shall be deemed to be zero and the provisions of the
20 second paragraph of Section 20-131 shall not apply with
21 respect to the retirement annuity benefits payable to the
22 participant under this Section.
23 (2) For purposes of Section 20-123 of this Code,
24 the self-managed plan shall be treated as if it were
25 provided by a participating system that has no survivor's
26 annuity benefit.
27 (3) Notwithstanding Section 20-125 of this Code,
28 upon reemployment by a participating system of a retired
29 participant in the self-managed plan, the retirement
30 annuity payment made to such participant from any annuity
31 contracts acquired from the participant's self-managed
32 plan account balances shall not be suspended.
33 (f) Establishment of Initial Account Balance. If at the
34 time an employee elects to participate in the self-managed
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1 plan he or she has rights and credits in the System due to
2 previous participation in the traditional benefit package,
3 the System shall establish for the employee an opening
4 account balance in the self-managed plan, equal to the amount
5 of contribution refund that the employee would be eligible to
6 receive under Section 15-154 if the employee terminated
7 employment on that date and elected a refund of
8 contributions, except that this hypothetical refund shall
9 include interest at the effective rate for the respective
10 years. The System shall transfer assets from the defined
11 benefit retirement program to the self-managed plan, as a tax
12 free transfer in accordance with Internal Revenue Service
13 guidelines, for purposes of funding the employee's opening
14 account balance.
15 (g) No Duplication of Service Credit. Notwithstanding
16 any other provision of this Article, an employee may not
17 purchase or receive service or service credit applicable to
18 any other retirement program administered by the System under
19 this Article for any period during which the employee was a
20 participant in the self-managed plan established under this
21 Section.
22 (h) Contributions. The self-managed plan shall be
23 funded by contributions from employees participating in the
24 self-managed plan and employer contributions as provided in
25 this Section.
26 The contribution rate for employees participating in the
27 self-managed plan under this Section shall be equal to the
28 employee contribution rate for other participants in the
29 System, as provided in Section 15-157. This required
30 contribution shall be made as an "employer pick-up" under
31 Section 414(h) of the Internal Revenue Code of 1986 or any
32 successor Section thereof. Any employee participating in the
33 System's traditional benefit package prior to his or her
34 election to participate in the self-managed plan shall
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1 continue to have the employer pick up the contributions
2 required under Section 15-157. However, the amounts picked
3 up after the election of the self-managed plan shall be
4 remitted to and treated as assets of the self-managed plan.
5 In no event shall an employee have an option of receiving
6 these amounts in cash. Employees may make additional
7 contributions to the self-managed plan in accordance with
8 procedures prescribed by the System, to the extent permitted
9 under rules prescribed by the System.
10 The program shall provide for employer contributions to
11 be credited to each self-managed plan participant at a rate
12 of 7.6% of the participating employee's salary, less the
13 amount used by the System to provide disability benefits for
14 the employee. The amounts so credited shall be paid into the
15 participant's self-managed plan accounts in a manner to be
16 prescribed by the System.
17 An amount of employer contribution, not exceeding 1% of
18 the participating employee's salary, shall be used for the
19 purpose of providing the disability benefits of the System to
20 the employee. Prior to the beginning of each plan year under
21 the self-managed plan, the Board of Trustees shall determine,
22 as a percentage of salary, the amount of employer
23 contributions to be allocated during that plan year for
24 providing disability benefits for employees in the
25 self-managed plan.
26 The State of Illinois shall make contributions by
27 appropriations to the System of the employer contributions
28 required for employees who participate in the self-managed
29 plan under this Section. The amount required shall be
30 certified by the Board of Trustees of the System and paid by
31 the State in accordance with Section 15-165. The System
32 shall not be obligated to remit the required employer
33 contributions to any of the insurance and annuity companies,
34 mutual fund companies, banks, trust companies, financial
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1 institutions, or other sponsors of any of the funding
2 vehicles offered under the self-managed plan until it has
3 received the required employer contributions from the State.
4 In the event of a deficiency in the amount of State
5 contributions, the System shall implement those procedures
6 described in subsection (c) of Section 15-165 to obtain the
7 required funding from the General Revenue Fund.
8 (i) Termination. The self-managed plan authorized under
9 this Section may be terminated by the System, subject to the
10 terms of any relevant contracts, and the System shall have no
11 obligation to reestablish the self-managed plan under this
12 Section. This Section does not create a right to continued
13 participation in any self-managed plan set up by the System
14 under this Section. If the self-managed plan is terminated,
15 the participants shall have the right to participate in one
16 of the other retirement programs offered by the System and
17 receive service credit in such other retirement program for
18 any years of employment following the termination.
19 (j) Vesting; Withdrawal; Return to Service. A
20 participant in the self-managed plan becomes vested in the
21 employer contributions credited to his or her accounts in the
22 self-managed plan on the earliest to occur of the following:
23 (1) completion of 5 years of service with an employer
24 described in Section 15-106; (2) the death of the
25 participating employee while employed by an employer
26 described in Section 15-106, if the participant has completed
27 at least 1 1/2 years of service; or (3) the participant's
28 election to retire and apply the reciprocal provisions of
29 Article 20 of this Code.
30 A participant in the self-managed plan who receives a
31 distribution of his or her vested amounts from the
32 self-managed plan while not yet eligible for retirement under
33 this Article (and Article 20, if applicable) upon or after
34 termination of employment shall forfeit all service credit
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1 and accrued rights in the System; if subsequently
2 re-employed, the participant shall be considered a new
3 employee. If a former participant again becomes a
4 participating employee (or becomes employed by a
5 participating system under Article 20 of this Code) and
6 continues as such for at least 2 years, all such rights,
7 service credits, and previous status as a participant shall
8 be restored upon repayment of the amount of the distribution,
9 without interest.
10 (k) Benefit amounts. If an employee who is vested in
11 employer contributions terminates employment, the employee
12 shall be entitled to a benefit which is based on the account
13 values attributable to both employer and employee
14 contributions and any investment return thereon.
15 If an employee who is not vested in employer
16 contributions terminates employment, the employee shall be
17 entitled to a benefit based solely on the account values
18 attributable to the employee's contributions and any
19 investment return thereon, and the employer contributions and
20 any investment return thereon shall be forfeited. Any
21 employer contributions which are forfeited shall be held in
22 escrow by the company investing those contributions and shall
23 be used as directed by the System for future allocations of
24 employer contributions or for the restoration of amounts
25 previously forfeited by former participants who again become
26 participating employees.
27 (Source: P.A. 89-430, eff. 12-15-95; 90-448, eff. 8-16-97;
28 90-576, eff. 3-31-98; 90-766, eff. 8-14-98.)
29 (40 ILCS 5/15-181) (from Ch. 108 1/2, par. 15-181)
30 Sec. 15-181. Duties of employers.
31 (a) Each employer, in preparing payroll vouchers for
32 participating employees, shall indicate, in addition to other
33 information: (1) the amount of employee contributions and
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1 survivors insurance contributions required under Section
2 15-157, (2) the gross earnings payable to each employee, and
3 (3) the total of all contributions required under Section
4 15-157. An additional certified copy of each payroll
5 certified by each employer shall be forwarded along with the
6 original payroll to the Director of Central Management
7 Services, State Comptroller, and other officer receiving the
8 original certified payroll for transmittal to the board.
9 (b) Each employer, in drawing warrants or checks against
10 trust or federal funds for items of salary on payroll
11 vouchers certified by employers, shall draw such warrants or
12 checks to participating employees for the amount of cash
13 salary or wages specified for the period, and shall draw a
14 warrant or check to this system for the total of the
15 contributions required under Section 15-157. The warrant or
16 check drawn to this system, together with the additional copy
17 of the payroll supplied by the employer, shall be transmitted
18 immediately to the board.
19 (c) The City of Champaign and the City of Urbana, as
20 employers of persons who participate in this System pursuant
21 to subsection (h) of Section 15-107, shall each collect and
22 transmit to the System from each payroll the employee
23 contributions required under Section 15-157, together with
24 such payroll documentation as the Board may require, at the
25 time that the payroll is paid.
26 (Source: P.A. 90-576, eff. 3-31-98.).
27 (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
28 Sec. 20-121. Calculation of proportional retirement
29 annuities. Upon retirement of the employee, a proportional
30 retirement annuity shall be computed by each participating
31 system in which pension credit has been established on the
32 basis of pension credits under each system. The computation
33 shall be in accordance with the formula or method prescribed
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1 by each participating system which is in effect at the date
2 of the employee's latest withdrawal from service covered by
3 any of the systems in which he has pension credits which he
4 elects to have considered under this Article. However, the
5 amount of any retirement annuity payable under the
6 self-managed plan established under Section 15-158.2 of this
7 Code depends solely on the value of the participant's vested
8 account balances and is not subject to any proportional
9 adjustment under this Section.
10 Combined pension credit under all retirement systems
11 subject to this Article shall be considered in determining
12 whether the minimum qualification has been met and the
13 formula or method of computation which shall be applied. If
14 a system has a step-rate formula for calculation of the
15 retirement annuity, pension credits covering previous service
16 which have been established under another system shall be
17 considered in determining which range or ranges of the
18 step-rate formula are to be applicable to the employee.
19 Interest on pension credit shall continue to accumulate
20 in accordance with the provisions of the law governing the
21 retirement system in which the same has been established
22 during the time an employee is in the service of another
23 employer, on the assumption such employee, for interest
24 purposes for pension credit, is continuing in the service
25 covered by such retirement system.
26 (Source: P.A. 79-782.)
27 (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
28 Sec. 20-123. Survivor's annuity. The provisions
29 governing a retirement annuity shall be applicable to a
30 survivor's annuity. Appropriate credits shall be established
31 for survivor's annuity purposes in those participating
32 systems which provide survivor's annuities, according to the
33 same conditions and subject to the same limitations and
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1 restrictions herein prescribed for a retirement annuity. If
2 a participating system has no survivor's annuity benefit, or
3 if the survivor's annuity benefit under that system is
4 waived, pension credit established in that this system shall
5 not be considered in determining eligibility for or the
6 amount of the survivor's annuity which may be payable by any
7 other participating system.
8 For persons who participate in the self-managed plan
9 established under Section 15-158.2 or the portable benefit
10 package established under Section 15-136.4, pension credit
11 established under Article 15 may be considered in determining
12 eligibility for or the amount of the survivor's annuity that
13 is payable by any other participating system, but pension
14 credit established in any other system shall not result in
15 any right to a survivor's annuity under the Article 15
16 system.
17 (Source: P.A. 79-782.)
18 (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
19 Sec. 20-124. Maximum benefits. In no event shall the
20 combined retirement or survivors annuities exceed the highest
21 annuity which would have been payable by any participating
22 system in which the employee has pension credits, if all of
23 his pension credits had been validated in that system.
24 If the combined annuities should exceed the highest
25 maximum as determined in accordance with this Section, the
26 respective annuities shall be reduced proportionately
27 according to the ratio which the amount of each proportional
28 annuity bears to the aggregate of all such annuities.
29 In the case of a participant in the self-managed plan
30 established under Section 15-158.2 of this Code to whom the
31 provisions of this Article apply:
32 (i) For purposes of calculating the combined
33 retirement annuity and the proportionate reduction, if
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1 any, in a retirement annuity other than one payable under
2 the self-managed plan, the amount of the Article 15
3 retirement annuity shall be deemed to be the highest
4 annuity to which the annuitant would have been entitled
5 if he or she had participated in the traditional benefit
6 package as defined in Section 15-103.1 rather than the
7 self-managed plan.
8 (ii) For purposes of calculating the combined
9 survivor's annuity and the proportionate reduction, if
10 any, in a survivor's annuity other than one payable under
11 the self-managed plan, the amount of the Article 15
12 survivor's annuity shall be deemed to be the highest
13 survivor's annuity to which the survivor would have been
14 entitled if the deceased employee had participated in the
15 traditional benefit package as defined in Section
16 15-103.1 rather than the self-managed plan.
17 (iii) Benefits payable under the self-managed plan
18 are not subject to proportionate reduction under this
19 Section.
20 (Source: P.A. 79-782.)
21 (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
22 Sec. 20-125. Return to employment - suspension of
23 benefits. If a retired employee returns to employment which
24 is covered by a system from which he is receiving a
25 proportional annuity under this Article, his proportional
26 annuity from all participating systems shall be suspended
27 during the period of re-employment, except that this
28 suspension does not apply to any distributions payable under
29 the self-managed plan established under Section 15-158.2 of
30 this Code.
31 The provisions of the Article under which such employment
32 would be covered shall govern the determination of whether
33 the employee has returned to employment, and if applicable
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1 the exemption of temporary employment or employment not
2 exceeding a specified duration or frequency, for all
3 participating systems from which the retired employee is
4 receiving a proportional annuity under this Article,
5 notwithstanding any contrary provisions in the other Articles
6 governing such systems.
7 (Source: P.A. 85-1008.)
8 (40 ILCS 5/20-131) (from Ch. 108 1/2, par. 20-131)
9 Sec. 20-131. Retirement Annuities and Survivors
10 Annuities - Guarantees.
11 (a) This amendatory Act of 1975 (P.A. 79-782) shall not
12 be applied to deprive any person or his survivor of
13 eligibility for an annuity or to reduce the annuity or to
14 deprive such person of rights to which he or his survivor
15 would have been entitled under the provisions of Article 20
16 which were in effect immediately prior to September 5, 1975,
17 if he was an employee immediately prior to that date.
18 (b) If the combined retirement annuity benefits provided
19 under Public Act 79-782 are less than the combined retirement
20 annuity benefits that would have been payable under the
21 alternative formula of Section 20-122, the system under which
22 retirement would have occurred, as provided by Section
23 20-122, shall increase the proportional retirement annuity by
24 an amount equal to the difference.
25 (c) Subsection (b) of this Section does not apply to the
26 retirement annuity benefits payable under the self-managed
27 plan established under Section 15-158.2 of this Code.
28 (Source: P.A. 86-820.)
29 (40 ILCS 5/15-158.1 rep.)
30 Section 94. The Illinois Pension Code is amended by
31 repealing Section 15-158.1.
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1 Section 99. Effective date. This Act takes effect upon
2 becoming law.