Public Act 90-0032 of the 90th General Assembly
Public Act 90-0032
HB0313 Enrolled LRB9000555EGfg
AN ACT in relation to public employee pensions.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by
changing Sections 3-110.5, 3-110.6, 4-109.1, 4-115.1,
5-167.5, 5-237, 6-164.2, 7-139.8, 7-141.1, 8-138, 8-150.1,
8-159, 8-164.1, 9-101, 9-121.13, 9-133, 9-133.1, 9-179.3,
11-134, 11-145.1, 11-154, 11-160.1, 14-104, 14-110, 15-157,
15-157.1, 16-127, 16-141, 17-106, 17-115, 17-116.1, 17-117,
17-117.1, 17-120, 17-122, 17-134, 17-146, 17-146.1 and 17-149
and adding Sections 7-145.1, 7-145.2, 9-120.1, 9-134.3,
9-146.2, and 14-104.10 as follows:
(40 ILCS 5/3-110.5) (from Ch. 108 1/2, par. 3-110.5)
Sec. 3-110.5. Transfer to Article 14 system.
(a) Until January 1, 1990, any active member of the
State Employees' Retirement System who is a State policeman
and until July 1, 1998, any active member of the State
Employees' Retirement System who is a security employee of
the Department of Corrections may apply for transfer of his
or her creditable service accumulated in any police pension
fund under this Article to the State Employees' Retirement
System. Such creditable service shall be transferred only
upon payment by such police pension fund to the State
Employees' Retirement System of an amount equal to:
(1) the amounts accumulated to the credit of the
applicant on the books of the fund on the date of
transfer; and
(2) employer contributions in an amount equal to
the amount determined under subparagraph (1); and
(3) any interest paid by the applicant in order to
reinstate service.
Participation in this Fund shall terminate on the date of
transfer.
(b) Until January 1, 1990, any such State policeman and
until July 1, 1998, any such security employee of the
Department of Corrections may reinstate service which was
terminated by receipt of a refund, by payment to the police
pension fund of the amount of the refund with interest
thereon at the rate of 6% per year, compounded annually, from
the date of refund to the date of payment.
(Source: P.A. 86-272.)
(40 ILCS 5/3-110.6) (from Ch. 108 1/2, par. 3-110.6)
Sec. 3-110.6. Transfer to Article 14 System.
(a) Any active member of the State Employees' Retirement
System who is an investigator for the Office of the State's
Attorneys Appellate Prosecutor or a controlled substance
inspector may apply for transfer of his or her creditable
service accumulated in any police pension fund under this
Article to the State Employees' Retirement System in
accordance with Section 14-110. The creditable service shall
be transferred only upon payment by the police pension fund
to the State Employees' Retirement System of an amount equal
to:
(1) the amounts accumulated to the credit of the
applicant on the books of the fund on the date of
transfer; and
(2) employer contributions in an amount equal to
the amount determined under subparagraph (1); and
(3) any interest paid by the applicant in order to
reinstate service.
Participation in the police pension fund shall terminate on
the date of transfer.
(b) Any such investigator or inspector may reinstate
service which was terminated by receipt of a refund, by
paying to the police pension fund the amount of the refund
with interest thereon at the rate of 6% per year, compounded
annually, from the date of refund to the date of payment.
(Source: P.A. 87-1265.)
(40 ILCS 5/4-109.1) (from Ch. 108 1/2, par. 4-109.1)
Sec. 4-109.1. Increase in pension.
(a) Except as provided in subsection (e), the monthly
pension of a firefighter who retires after July 1, 1971 and
prior to January 1, 1986, shall, upon either the first of the
month following the first anniversary of the date of
retirement if 60 years of age or over at retirement date, or
upon the first day of the month following attainment of age
60 if it occurs after the first anniversary of retirement, be
increased by 2% of the originally granted monthly pension and
by an additional 2% in each January thereafter. Effective
January 1976, the rate of the annual increase shall be 3% of
the originally granted monthly pension.
(b) The monthly pension of a firefighter who retired
from service with 20 or more years of service, on or before
July 1, 1971, shall be increased, in January of the year
following the year of attaining age 65 or in January 1972, if
then over age 65, by 2% of the originally granted monthly
pension, for each year the firefighter received pension
payments. In each January thereafter, he or she shall
receive an additional increase of 2% of the original monthly
pension. Effective January 1976, the rate of the annual
increase shall be 3%.
(c) The monthly pension of a firefighter who is
receiving a disability pension under this Article shall be
increased, in January of the year following the year the
firefighter attains age 60, or in January 1974, if then over
age 60, by 2% of the originally granted monthly pension for
each year he or she received pension payments. In each
January thereafter, the firefighter shall receive an
additional increase of 2% of the original monthly pension.
Effective January 1976, the rate of the annual increase shall
be 3%.
(c-1) On January 1, 1998, every child's disability
benefit payable on that date under Section 4-110 or 4-110.1
shall be increased by an amount equal to 1/12 of 3% of the
amount of the benefit, multiplied by the number of months for
which the benefit has been payable. On each January 1
thereafter, every child's disability benefit payable under
Section 4-110 or 4-110.1 shall be increased by 3% of the
amount of the benefit then being paid, including any previous
increases received under this Article. These increases are
not subject to any limitation on the maximum benefit amount
included in Section 4-110 or 4-110.1.
(d) The monthly pension of a firefighter who retires
after January 1, 1986, shall, upon either the first of the
month following the first anniversary of the date of
retirement if 55 years of age or over at retirement date, or
upon the first day of the month following attainment of age
55 if it occurs after the first anniversary of retirement, be
increased by 3% of the originally granted monthly pension for
each full year that has elapsed since the pension began, and
by an additional 3% in each January thereafter.
(e) Notwithstanding the provisions of subsection (a),
upon the first day of the month following (1) the first
anniversary of the date of retirement, or (2) the attainment
of age 55, or (3) July 1, 1987, whichever occurs latest, the
monthly pension of a firefighter who retired on or after
January 1, 1977 and on or before January 1, 1986 and did not
receive an increase under subsection (a) before July 1, 1987,
shall be increased by 3% of the originally granted monthly
pension for each full year that has elapsed since the pension
began, and by an additional 3% in each January thereafter.
The increases provided under this subsection are in lieu of
the increases provided in subsection (a).
(Source: P.A. 85-941.)
(40 ILCS 5/4-115.1) (from Ch. 108 1/2, par. 4-115.1)
Sec. 4-115.1. Eligibility of children. Dependent
benefits shall be paid to each natural child of a deceased
firefighter, and to each child legally adopted before the
firefighter attains age 50, until the child's attainment of
age 18, or marriage, whichever occurs first, whether or not
the death of the firefighter occurred prior to November 21,
1975.
Benefits payable to or on account of a child under this
Article shall not be reduced or terminated by reason of the
child's adoption by a third party after the firefighter's
death.
Benefits payable to or on account of a child under this
Article to children shall not be reduced or terminated by
reason of the child's attainment of age 18 if he or she is
then dependent by reason of a physical or mental disability
but shall continue to be paid as long as such dependency
continues. Individuals over the age of 18 and adjudged as a
disabled person pursuant to Article XIa of the Probate Act of
1975, except for persons receiving benefits under Article III
of the Illinois Public Aid Code, shall be eligible to receive
benefits under this Act.
(Source: P.A. 83-1440.)
(40 ILCS 5/5-167.5) (from Ch. 108 1/2, par. 5-167.5)
Sec. 5-167.5. Group health benefit.
(a) For the purposes of this Section: (1) "annuitant"
means a person receiving an age and service annuity, a prior
service annuity, a widow's annuity, a widow's prior service
annuity, or a minimum annuity on or after January 1, 1988,
under Article 5, 6, 8 or 11, by reason of previous employment
by the City of Chicago (hereinafter, in this Section, "the
city"); (2) "Medicare Plan annuitant" means an annuitant
described in item (1) who is eligible for Medicare benefits;
and (3) "non-Medicare Plan annuitant" means an annuitant
described in item (1) who is not eligible for Medicare
benefits.
(b) The city shall continue to offer group health
benefits to annuitants and their eligible dependents through
June 30, 2002. The same basic city health care plan
available as of June 30, 1988 (hereinafter called the basic
city plan) shall cease to be a plan offered by the city,
except as specified in subparagraphs (4) and (5) below, and
shall be closed to new enrollment or transfer of coverage for
any non-Medicare Plan annuitant as of the effective date of
this amendatory Act of 1997. The city shall offer
non-Medicare Plan annuitants and their eligible dependents
the option of enrolling in its Annuitant Preferred Provider
Plan, and may offer additional plans for any annuitant. The
city may amend, modify, or terminate any of its additional
plans at its sole discretion. If the city offers more than
one annuitant plan, the city shall allow annuitants to
convert coverage from one city annuitant plan to another,
except the basic city plan, during times designated by the
city, which periods of time shall occur at least annually.
For the period dating from the effective date of this
amendatory Act of 1997 through June 30, 2002, monthly premium
rates may be increased for annuitants during the time of
their participation in non-Medicare plans, except as provided
in subparagraphs (1) through (4) of this subsection.
(1) For non-Medicare Plan annuitants who retired
prior to January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
not exceed the highest premium rate chargeable under any
city non-Medicare Plan annuitant coverage as of December
1, 1996.
(2) For non-Medicare Plan annuitants who retire on
or after January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
be the rate in effect on December 1, 1996, with monthly
premium increases to take effect no sooner than April 1,
1998 at the lower of (i) the premium rate determined
pursuant to subsection (g) or (ii) 10% of the immediately
previous month's rate for similar coverage.
(3) In no event shall any non-Medicare Plan
annuitant's share of monthly premium for non-Medicare
Plan coverage exceed 10% of the annuitant's monthly
annuity.
(4) Non-Medicare Plan annuitants who are enrolled
in the basic city plan as of July 1, 1998 may remain in
the basic city plan, if they so choose, on the condition
that they are not entitled to the caps on rates set forth
in subparagraphs (1) through (3), and their premium rate
shall be the rate determined in accordance with
subsections (c) and (g).
(5) Medicare Plan annuitants who are currently
enrolled in the basic city plan for Medicare eligible
annuitants may remain in that plan, if they so choose,
through June 30, 2002. Annuitants shall not be allowed
to enroll in or transfer into the basic city plan for
Medicare eligible annuitants on or after July 1, 1999.
The city shall continue to offer annuitants a
supplemental Medicare Plan for Medicare eligible
annuitants through June 30, 2002, and the city may offer
additional plans to Medicare eligible annuitants in its
sole discretion. All Medicare Plan annuitant monthly
rates shall be determined in accordance with subsections
(c) and (g).
(c) Effective the date the initial increased annuitant
payments pursuant to subsection (g) take effect, The city
shall pay 50% of the aggregated costs of the claims or
premiums, whichever is applicable, as determined in
accordance with subsection (g), of annuitants and their
dependents under all health care plans offered by the city.
The city may reduce its obligation by application of price
reductions obtained as a result of financial arrangements
with providers or plan administrators. The claims or
premiums of all annuitants and their dependents under all of
the plans offered by the city shall be aggregated for the
purpose of calculating the city's payment required under this
subsection, as well as for the setting of rates of payment
for annuitants as required under subsection (g).
(d) From January 1, 1988 until December 31, 1992, the
board shall pay to the city on behalf of each of the board's
annuitants who chooses to participate in any of the city's
plans the following amounts: up to a maximum of $65 per month
for each such annuitant who is not qualified to receive
medicare benefits, and up to a maximum of $35 per month for
each such annuitant who is qualified to receive medicare
benefits. From January 1, 1993 until June 30, 2002 December
31, 1997, the board shall pay to the city on behalf of each
of the board's annuitants who chooses to participate in any
of the city's plans the following amounts: up to a maximum of
$75 per month for each such annuitant who is not qualified to
receive medicare benefits, and up to a maximum of $45 per
month for each such annuitant who is qualified to receive
medicare benefits.
For the period January 1, 1988 through the effective date
of this amendatory Act of 1989, payments under this Section
shall be reduced by the amounts paid by or on behalf of the
board's annuitants covered during that period.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 5-168; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be
charged against it.
(e) The city's obligations under subsections (b) and (c)
shall terminate on June 30, 2002 December 31, 1997, except
with regard to covered expenses incurred but not paid as of
that date. This subsection shall not affect other
obligations that may be imposed by law.
(f) The group coverage plans described in this Section
are not and shall not be construed to be pension or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(g) For each annuitant plan offered by the city, the
aggregate cost of claims, as reflected in the claim records
of the plan administrator, and premiums for each calendar
year from 1989 through 1997 of all annuitants and dependents
covered by the city's group health care plans shall be
estimated by the city, based upon a written determination by
a qualified independent actuary to be appointed and paid by
the city and the board. If the such estimated annual cost
for each annuitant plan offered by the city is more than the
estimated amount to be contributed by the city for that plan
pursuant to subsections (b) and (c) during that year plus the
estimated amounts to be paid pursuant to subsection (d) and
by the other pension boards on behalf of other participating
annuitants, the difference shall be paid by all participating
annuitants participating in the plan, except as provided in
subsection (b). The city, based upon the determination of
the independent actuary, shall set the monthly amounts to be
paid by the participating annuitants. The initial
determination of such payments shall be prospective only and
shall be based upon the estimated costs for the balance of
the year. The board may deduct the amounts to be paid by its
annuitants from the participating annuitants' monthly
annuities.
If it is determined from the city's annual audit, or from
audited experience data, that the total amount paid by all
participating annuitants was more or less than the difference
between (1) the cost of providing the group health care
plans, and (2) the sum of the amount to be paid by the city
as determined under subsection (c) and the amounts paid by
all the pension boards, then the independent actuary and the
city shall account for the excess or shortfall in the next
year's payments by annuitants, except as provided in
subsection (b).
(h) An annuitant may elect to terminate coverage in a
plan at the end of any month any time, which election shall
terminate the annuitant's obligation to contribute toward
payment of the excess described in subsection (g).
(i) The city shall advise the board of all proposed
premium increases for health care at least 75 days prior to
the effective date of the change, and any increase shall be
prospective only.
(Source: P.A. 86-273.)
(40 ILCS 5/5-237)
Sec. 5-237. Transfer of creditable service to Article 9
fund.
(a) Any person who is an active participant in the
pension fund established under Article 9 of this Code and who
was employed by the office of the Cook County State's
Attorney on January 1, 1995 may apply for transfer of his or
her credits and creditable service accumulated in this Fund
to that Article 9 fund. Upon receipt of a written
application to make this transfer, the Fund shall pay to the
Article 9 fund an amount consisting of:
(1) the amounts credited to the applicant through
employee contributions, plus accumulated interest; plus
(2) an amount representing municipality
contributions, equal to the amount determined under item
(1); plus
(3) any interest paid to the Fund in order to
reinstate credits and creditable service under subsection
(b).
Participation in this Fund shall terminate on the date of the
transfer.
(a-5) Until July 1, 1998, any person who is an active
participant in the pension fund established under Article 9
of this Code and a member of the county police department as
defined in Section 9-128.1 may apply for transfer of his or
her credits and creditable service accumulated in this Fund
to that Article 9 fund. Upon receipt of a written
application to make this transfer, the Fund shall pay to the
Article 9 fund an amount consisting of:
(1) the amounts credited to the applicant through
employee contributions, plus accumulated interest; plus
(2) an amount representing municipality
contributions, equal to the amount determined under item
(1); plus
(3) any interest paid to the Fund in order to
reinstate credits and creditable service under subsection
(b).
Participation in this Fund shall terminate on the date of the
transfer.
(b) As part of a transfer under subsection (a) or (a-5),
a person may reinstate credits and creditable service that
was terminated upon receipt of a refund, by paying to the
Fund the amount of the refund plus interest thereon at the
rate of 6% per year, compounded annually, from the date of
the refund to the date of payment.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/6-164.2) (from Ch. 108 1/2, par. 6-164.2)
Sec. 6-164.2. Group health benefit.
(a) For the purposes of this Section: (1) "annuitant"
means a person receiving an age and service annuity, a prior
service annuity, a widow's annuity, a widow's prior service
annuity, or a minimum annuity on or after January 1, 1988,
under Article 5, 6, 8 or 11, by reason of previous employment
by the City of Chicago (hereinafter, in this Section, "the
city"); (2) "Medicare Plan annuitant" means an annuitant
described in item (1) who is eligible for Medicare benefits;
and (3) "non-Medicare Plan annuitant" means an annuitant
described in item (1) who is not eligible for Medicare
benefits.
(b) The city shall continue to offer group health
benefits to annuitants and their eligible dependents through
June 30, 2002. The same basic city health care plan
available as of June 30, 1988 (hereinafter called the basic
city plan) shall cease to be a plan offered by the city,
except as specified in subparagraphs (4) and (5) below, and
shall be closed to new enrollment or transfer of coverage for
any non-Medicare Plan annuitant as of the effective date of
this amendatory Act of 1997. The city shall offer
non-Medicare Plan annuitants and their eligible dependents
the option of enrolling in its Annuitant Preferred Provider
Plan, and may offer additional plans for any annuitant. The
city may amend, modify, or terminate any of its additional
plans at its sole discretion. If the city offers more than
one annuitant plan, the city shall allow annuitants to
convert coverage from one city annuitant plan to another,
except the basic city plan, during times designated by the
city, which periods of time shall occur at least annually.
For the period dating from the effective date of this
amendatory Act of 1997 through June 30, 2002, monthly
premium rates may be increased for annuitants during the time
of their participation in non-Medicare plans, except as
provided in subparagraphs (1) through (4) of this subsection.
(1) For non-Medicare Plan annuitants who retired
prior to January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
not exceed the highest premium rate chargeable under any
city non-Medicare Plan annuitant coverage as of December
1, 1996.
(2) For non-Medicare Plan annuitants who retire on
or after January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
be the rate in effect on December 1, 1996, with monthly
premium increases to take effect no sooner than April 1,
1998 at the lower of (i) the premium rate determined
pursuant to subsection (g) or (ii) 10% of the immediately
previous month's rate for similar coverage.
(3) In no event shall any non-Medicare Plan
annuitant's share of monthly premium for non-Medicare
Plan coverage exceed 10% of the annuitant's monthly
annuity.
(4) Non-Medicare Plan annuitants who are enrolled
in the basic city plan as of July 1, 1998 may remain in
the basic city plan, if they so choose, on the condition
that they are not entitled to the caps on rates set forth
in subparagraphs (1) through (3), and their premium rate
shall be the rate determined in accordance with
subsections (c) and (g).
(5) Medicare Plan annuitants who are currently
enrolled in the basic city plan for Medicare eligible
annuitants may remain in that plan, if they so choose,
through June 30, 2002. Annuitants shall not be allowed
to enroll in or transfer into the basic city plan for
Medicare eligible annuitants on or after July 1, 1999.
The city shall continue to offer annuitants a
supplemental Medicare Plan for Medicare eligible
annuitants through June 30, 2002, and the city may offer
additional plans to Medicare eligible annuitants in its
sole discretion. All Medicare Plan annuitant monthly
rates shall be determined in accordance with subsections
(c) and (g).
(c) Effective the date the initial increased annuitant
payments pursuant to subsection (g) take effect, The city
shall pay 50% of the aggregated costs of the claims or
premiums, whichever is applicable, as determined in
accordance with subsection (g), of annuitants and their
dependents under all health care plans offered by the city.
The city may reduce its obligation by application of price
reductions obtained as a result of financial arrangements
with providers or plan administrators. The claims or
premiums of all annuitants and their dependents under all of
the plans offered by the city shall be aggregated for the
purpose of calculating the city's payment required under this
subsection, as well as for the setting of rates of payment
for annuitants as required under subsection (g).
(d) From January 1, 1988 until December 31, 1992, the
board shall pay to the city on behalf of each of the board's
annuitants who chooses to participate in any of the city's
plans the following amounts: up to a maximum of $65 per month
for each such annuitant who is not qualified to receive
medicare benefits, and up to a maximum of $35 per month for
each such annuitant who is qualified to receive medicare
benefits. From January 1, 1993 until June 30, 2002 December
31, 1997, the board shall pay to the city on behalf of each
of the board's annuitants who chooses to participate in any
of the city's plans the following amounts: up to a maximum of
$75 per month for each such annuitant who is not qualified to
receive medicare benefits, and up to a maximum of $45 per
month for each such annuitant who is qualified to receive
medicare benefits.
For the period January 1, 1988 through the effective date
of this amendatory Act of 1989, payments under this Section
shall be reduced by the amounts paid by or on behalf of the
board's annuitants covered during that period.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 6-165; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be
charged against it.
(e) The city's obligations under subsections (b) and (c)
shall terminate on June 30, 2002 December 31, 1997, except
with regard to covered expenses incurred but not paid as of
that date. This subsection shall not affect other
obligations that may be imposed by law.
(f) The group coverage plans described in this Section
are not and shall not be construed to be pension or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(g) For each annuitant plan offered by the city, the
aggregate cost of claims, as reflected in the claim records
of the plan administrator, and premiums for each calendar
year from 1989 through 1997 of all annuitants and dependents
covered by the city's group health care plans shall be
estimated by the city, based upon a written determination by
a qualified independent actuary to be appointed and paid by
the city and the board. If the such estimated annual cost
for each annuitant plan offered by the city is more than the
estimated amount to be contributed by the city for that plan
pursuant to subsections (b) and (c) during that year plus the
estimated amounts to be paid pursuant to subsection (d) and
by the other pension boards on behalf of other participating
annuitants, the difference shall be paid by all participating
annuitants participating in the plan, except as provided in
subsection (b). The city, based upon the determination of
the independent actuary, shall set the monthly amounts to be
paid by the participating annuitants. The initial
determination of such payments shall be prospective only and
shall be based upon the estimated costs for the balance of
the year. The board may deduct the amounts to be paid by its
annuitants from the participating annuitants' monthly
annuities.
If it is determined from the city's annual audit, or from
audited experience data, that the total amount paid by all
participating annuitants was more or less than the difference
between (1) the cost of providing the group health care
plans, and (2) the sum of the amount to be paid by the city
as determined under subsection (c) and the amounts paid by
all the pension boards, then the independent actuary and the
city shall account for the excess or shortfall in the next
year's payments by annuitants, except as provided in
subsection (b).
(h) An annuitant may elect to terminate coverage in a
plan at the end of any month any time, which election shall
terminate the annuitant's obligation to contribute toward
payment of the excess described in subsection (g).
(i) The city shall advise the board of all proposed
premium increases for health care at least 75 days prior to
the effective date of the change, and any increase shall be
prospective only.
(Source: P.A. 86-273.)
(40 ILCS 5/7-139.8) (from Ch. 108 1/2, par. 7-139.8)
Sec. 7-139.8. Transfer to Article 14 System.
(a) Any active member of the State Employees' Retirement
System who is an investigator for the Office of the State's
Attorneys Appellate Prosecutor or a controlled substance
inspector may apply for transfer of his or her credits and
creditable service accumulated in this Fund for service as a
sheriff's law enforcement employee to the State Employees'
Retirement System in accordance with Section 14-110. The
creditable service shall be transferred only upon payment by
this Fund to the State Employees' Retirement System of an
amount equal to:
(1) the amounts accumulated to the credit of the
applicant for service as a sheriff's law enforcement
employee, including interest; and
(2) municipality credits based on such service,
including interest; and
(3) any interest paid by the applicant to reinstate
such service.
Participation in this Fund as to any credits transferred
under this Section shall terminate on the date of transfer.
(b) Any such investigator or inspector may reinstate
credits and creditable service terminated upon receipt of a
separation benefit, by paying to the Fund the amount of the
separation benefit plus interest thereon at the rate of 6%
per year to the date of payment.
(Source: P.A. 87-1265.)
(40 ILCS 5/7-141.1)
Sec. 7-141.1. Early retirement incentive.
(a) The General Assembly finds and declares that:
(1) Units of local government across the State have
been functioning under a financial crisis.
(2) This financial crisis is expected to continue.
(3) Units of local government must depend on
additional sources of revenue and, when those sources are
not forthcoming, must establish cost-saving programs.
(4) An early retirement incentive designed
specifically to target highly-paid senior employees could
result in significant annual cost savings.
(5) The early retirement incentive should be made
available only to those units of local government that
determine that an early retirement incentive is in their
best interest.
(6) A unit of local government adopting a program
of early retirement incentives under this Section is
encouraged to implement personnel procedures to prohibit,
for at least 5 years, the rehiring (whether on payroll or
by independent contract) of employees who receive early
retirement incentives.
(7) A unit of local government adopting a program
of early retirement incentives under this Section is also
encouraged to replace as few of the participating
employees as possible and to hire replacement employees
for salaries totaling no more than 80% of the total
salaries formerly paid to the employees who participate
in the early retirement program.
It is the primary purpose of this Section to encourage
units of local government that can realize true cost savings,
or have determined that an early retirement program is in
their best interest, to implement an early retirement
program.
(b) Until the effective date of this amendatory Act of
1997, this Section does not apply to any employer that is a
city, village, or incorporated town, nor to the employees of
any such employer. Beginning on the effective date of this
amendatory Act of 1997, any employer under this Article,
including an employer that is a city, village, or
incorporated town, may establish an early retirement
incentive program for its employees under this Section. The
decision of a city, village, or incorporated town to consider
or establish an early retirement program is at the sole
discretion of that city, village, or incorporated town, and
nothing in this amendatory Act of 1997 limits or otherwise
diminishes this discretion. Nothing contained in this
Section shall be construed to require a city, village, or
incorporated town to establish an early retirement program
and no city, village, or incorporated town may be compelled
to implement such a program. All references in this Section
to an "employer" or "unit of local government" are
specifically intended to exclude every employer that is a
city, village, or incorporated town.
The benefits provided in this Section are available only
to members employed by a participating employer that has
filed with the Board of the Fund a resolution or ordinance
expressly providing for the creation of an early retirement
incentive program under this Section for its employees and
specifying the effective date of the early retirement
incentive program. Subject to the limitation in subsection
(h), an employer may adopt a resolution or ordinance
providing a program of early retirement incentives under this
Section at any time, but no more often than once in 5 years.
The resolution or ordinance shall be in substantially the
following form:
RESOLUTION (ORDINANCE) NO. ....
A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
WHEREAS, Section 7-141.1 of the Illinois Pension Code
provides that a participating employer may elect to adopt an
early retirement incentive program offered by the Illinois
Municipal Retirement Fund by adopting a resolution or
ordinance; and
WHEREAS, The goal of adopting an early retirement program
is to realize a substantial savings in personnel costs by
offering early retirement incentives to employees who have
accumulated many years of service credit; and
WHEREAS, Implementation of the early retirement program
will provide a budgeting tool to aid in controlling payroll
costs; and
WHEREAS, The (name of governing body) has determined that
the adoption of an early retirement incentive program is in
the best interests of the (name of participating employer);
therefore be it
RESOLVED (ORDAINED) by the (name of governing body) of
(name of participating employer) that:
(1) The (name of participating employer) does hereby
adopt the Illinois Municipal Retirement Fund early retirement
incentive program as provided in Section 7-141.1 of the
Illinois Pension Code. The early retirement incentive
program shall take effect on (date).
(2) In order to help achieve a true cost savings, a
person who retires under the early retirement incentive
program shall lose those incentives if he or she later
accepts employment with any IMRF employer in a position for
which participation in IMRF is required or is elected by the
employee.
(3) In order to utilize an early retirement incentive as
a budgeting tool, the (name of participating employer) will
use its best efforts either to limit the number of employees
who replace the employees who retire under the early
retirement program or to limit the salaries paid to the
employees who replace the employees who retire under the
early retirement program.
(4) The effective date of each employee's retirement
under this early retirement program shall be set by (name of
employer) and shall be no earlier than the effective date of
the program and no later than one year after that effective
date; except that the employee may require that the
retirement date set by the employer be no later than the June
30 next occurring after the effective date of the program and
no earlier than the date upon which the employee qualifies
for retirement.
(5) To be eligible for the early retirement incentive
under this Section, the employee must have attained age 50
and have at least 20 years of creditable service by his or
her retirement date.
(6) The (clerk or secretary) shall promptly file a
certified copy of this resolution (ordinance) with the Board
of Trustees of the Illinois Municipal Retirement Fund.
CERTIFICATION
I, (name), the (clerk or secretary) of the (name of
participating employer) of the County of (name), State of
Illinois, do hereby certify that I am the keeper of the books
and records of the (name of employer) and that the foregoing
is a true and correct copy of a resolution (ordinance) duly
adopted by the (governing body) at a meeting duly convened
and held on (date).
SEAL
(Signature of clerk or secretary)
(c) To be eligible for the benefits provided under an
early retirement incentive program adopted under this
Section, a member must:
(1) be a participating employee of this Fund who,
on the effective date of the program, (i) is in active
payroll status as an employee of a participating employer
that has filed the required ordinance or resolution with
the Board, (ii) is on layoff status from such a position
with a right of re-employment or recall to service, (iii)
is on a leave of absence from such a position, or (iv) is
on disability but has not been receiving benefits under
Section 7-146 or 7-150 for a period of more than 2 years
from the date of application;
(2) have never previously received a retirement
annuity under this Article or under the Retirement
Systems Reciprocal Act using service credit established
under this Article;
(3) file with the Board within 60 days of the
effective date of the program an application requesting
the benefits provided in this Section;
(4) have at least 20 years of creditable service in
the Fund by the date of retirement, without the use of
any creditable service established under this Section;
(5) have attained age 50 by the date of retirement,
without the use of any age enhancement received under
this Section; and
(6) be eligible to receive a retirement annuity
under this Article by the date of retirement, for which
purpose the age enhancement and creditable service
established under this Section may be considered.
(d) The employer shall determine the retirement date for
each employee participating in the early retirement program
adopted under this Section. The retirement date shall be no
earlier than the effective date of the program and no later
than one year after that effective date, except that the
employee may require that the retirement date set by the
employer be no later than the June 30 next occurring after
the effective date of the program and no earlier than the
date upon which the employee qualifies for retirement. The
employer shall give each employee participating in the early
retirement program at least 30 days written notice of the
employee's designated retirement date, unless the employee
waives this notice requirement.
(e) An eligible person may establish up to 5 years of
creditable service under this Section. In addition, for each
period of creditable service established under this Section,
a person shall have his or her age at retirement deemed
enhanced by an equivalent period.
The creditable service established under this Section may
be used for all purposes under this Article and the
Retirement Systems Reciprocal Act, except for the computation
of final rate of earnings and the determination of earnings,
salary, or compensation under this or any other Article of
the Code.
The age enhancement established under this Section may be
used for all purposes under this Article (including
calculation of the reduction imposed under subdivision
(a)1b(iv) of Section 7-142), except for purposes of a
reversionary annuity under Section 7-145 and any
distributions required because of age. The age enhancement
established under this Section may be used in calculating a
proportionate annuity payable by this Fund under the
Retirement Systems Reciprocal Act, but shall not be used in
determining benefits payable under other Articles of this
Code under the Retirement Systems Reciprocal Act.
(f) For all creditable service established under this
Section, the member must pay to the Fund an employee
contribution consisting of 4.5% of the member's highest
annual salary rate used in the determination of the final
rate of earnings for retirement annuity purposes for each
year of creditable service granted under this Section. For
creditable service established under this Section by a person
who is a sheriff's law enforcement employee to be deemed
service as a sheriff's law enforcement employee, the employee
contribution shall be at the rate of 6.5% of highest annual
salary per year of creditable service granted. Contributions
for fractions of a year of service shall be prorated. Any
amounts that are disregarded in determining the final rate of
earnings under subdivision (d)(5) of Section 7-116 (the 125%
rule) shall also be disregarded in determining the required
contribution under this subsection (f).
The employee contribution shall be paid to the Fund as
follows: If the member is entitled to a lump sum payment for
accumulated vacation, sick leave, or personal leave upon
withdrawal from service, the employer shall deduct the
employee contribution from that lump sum and pay the deducted
amount directly to the Fund. If there is no such lump sum
payment or the required employee contribution exceeds the net
amount of the lump sum payment, then the remaining amount
due, at the option of the employee, may either be paid to the
Fund before the annuity commences or deducted from the
retirement annuity in 24 equal monthly installments.
(g) An annuitant who has received any age enhancement or
creditable service under this Section and thereafter accepts
employment with or enters into a personal services contract
with an employer under this Article thereby forfeits that age
enhancement and creditable service. A person forfeiting
early retirement incentives under this subsection (i) must
repay to the Fund that portion of the retirement annuity
already received which is attributable to the early
retirement incentives that are being forfeited, (ii) shall
not be eligible to participate in any future early retirement
program adopted under this Section, and (iii) is entitled to
a refund of the employee contribution paid under subsection
(f). The Board shall deduct the required repayment from the
refund and may impose a reasonable payment schedule for
repaying the amount, if any, by which the required repayment
exceeds the refund amount.
(h) The additional unfunded liability accruing as a
result of the adoption of a program of early retirement
incentives under this Section by an employer shall be
amortized over a period of 10 years beginning on January 1 of
the second calendar year following the calendar year in which
the latest date for beginning to receive a retirement annuity
under the program (as determined by the employer under
subsection (d) of this Section) occurs; except that the
employer may provide for a shorter amortization period (of no
less than 5 years) by adopting an ordinance or resolution
specifying the length of the amortization period and
submitting a certified copy of the ordinance or resolution to
the Fund no later than 6 months after the effective date of
the program. An employer, at its discretion, may accelerate
payments to the Fund.
An employer may provide more than one early retirement
incentive program for its employees under this Section.
However, an employer that has provided an early retirement
incentive program for its employees under this Section may
not provide another early retirement incentive program under
this Section until (1) the liability arising from the earlier
program has been fully paid to the Fund and (2) at least 6
years have elapsed from the effective date of the previous
program.
(Source: P.A. 89-329, eff. 8-17-95.)
(40 ILCS 5/7-145.1 new)
Sec. 7-145.1. Alternative annuity for county officers.
(a) The benefits provided in this Section and Section
7-145.2 are available only if the county board has filed with
the Board of the Fund a resolution or ordinance expressly
consenting to the availability of these benefits for its
elected county officers. The county board's consent is
irrevocable.
An elected county officer may elect to establish
alternative credits for an alternative annuity by electing in
writing to make additional optional contributions in
accordance with this Section and procedures established by
the board. The elected county officer may discontinue making
the additional optional contributions by notifying the Fund
in writing in accordance with this Section and procedures
established by the board.
Additional optional contributions for the alternative
annuity shall be as follows:
(1) For service after the option is elected, an
additional contribution of 3% of salary shall be
contributed to the Fund on the same basis and under the
same conditions as contributions required under Section
7-173.
(2) For service before the option is elected, an
additional contribution of 3% of the salary for the
applicable period of service, plus interest at the
effective rate from the date of service to the date of
payment. All payments for past service must be paid in
full before credit is given. No additional optional
contributions may be made for any period of service for
which credit has been previously forfeited by acceptance
of a refund, unless the refund is repaid in full with
interest at the effective rate from the date of refund to
the date of repayment.
(b) In lieu of the retirement annuity otherwise payable
under this Article, an elected county officer who (1) has
elected to participate in the Fund and make additional
optional contributions in accordance with this Section and
(2) has attained age 55 with at least 8 years of service
credit (or has attained age 50 with at least 20 years of
service as a sheriff's law enforcement employee) may elect to
have his retirement annuity computed as follows: 3% of the
participant's salary at the time of termination of service
for each of the first 8 years of service credit, plus 4% of
that salary for each of the next 4 years of service credit,
plus 5% of that salary for each year of service credit in
excess of 12 years, subject to a maximum of 80% of that
salary. To the extent that the elected county officer has
made additional optional contributions with respect to only a
portion of his years of service credit, his retirement
annuity will first be determined in accordance with this
Section to the extent that additional optional contributions
were made, and then in accordance with the remaining Sections
of this Article to the extent of years of service credit with
respect to which additional optional contributions were not
made.
(c) In lieu of the disability benefits otherwise payable
under this Article, an elected county officer who (1) has
elected to participate in the Fund, and (2) has become
permanently disabled and as a consequence is unable to
perform the duties of his office, and (3) was making optional
contributions in accordance with this Section at the time the
disability was incurred, may elect to receive a disability
annuity calculated in accordance with the formula in
subsection (b). For the purposes of this subsection, an
elected county officer shall be considered permanently
disabled only if: (i) disability occurs while in service as
an elected county officer and is of such a nature as to
prevent him from reasonably performing the duties of his
office at the time; and (ii) the board has received a written
certification by at least 2 licensed physicians appointed by
it stating that the officer is disabled and that the
disability is likely to be permanent.
(d) Refunds of additional optional contributions shall
be made on the same basis and under the same conditions as
provided under Section 7-166, 7-167 and 7-168. Interest
shall be credited at the effective rate on the same basis and
under the same conditions as for other contributions.
(e) The plan of optional alternative benefits and
contributions shall be available to persons who are elected
county officers and active contributors to the Fund on or
after November 15, 1994. A person who was an elected county
officer and an active contributor to the Fund on November 15,
1994 but is no longer an active contributor may apply to make
additional optional contributions under this Section at any
time within 90 days after the effective date of this
amendatory Act of 1997; if the person is an annuitant, the
resulting increase in annuity shall begin to accrue on the
first day of the month following the month in which the
required payment is received by the Fund.
(f) For the purposes of this Section and Section
7-145.2, the terms "elected county officer" and "elected
county office" include, but are not limited to: (1) the
county clerk, recorder, treasurer, coroner, assessor (if
elected), auditor, sheriff, and State's Attorney; members of
the county board; and the clerk of the circuit court; and (2)
a person who has been appointed to fill a vacancy in an
office that is normally filled by election on a countywide
basis, for the duration of his or her service in that office.
The terms "elected county officer" and "elected county
office" do not include any officer or office of a county that
has not consented to the availability of benefits under this
Section and Section 7-145.2.
(40 ILCS 5/7-145.2 new)
Sec. 7-145.2. Alternative survivor's benefits for
survivors of county officers.
In lieu of the survivor's benefits otherwise payable
under this Article, the spouse or eligible child of any
deceased elected county officer who (1) had elected to
participate in the Fund, and (2) was either making additional
optional contributions in accordance with Section 7-145.1 on
the date of death, or was receiving an annuity calculated
under that Section at the time of death, may elect to receive
an annuity beginning on the date of the elected county
officer's death, provided that the spouse and officer must
have been married on the date of the last termination of his
or her service as an elected county officer and for a
continuous period of at least one year immediately preceding
his or her death.
The annuity shall be payable beginning on the date of the
elected county officer's death if the spouse is then age 50
or over, or beginning at age 50 if the age of the spouse is
less than 50 years. If a minor unmarried child or children
of the county officer, under age 18, also survive, and the
child or children are under the care of the eligible spouse,
the annuity shall begin as of the date of death of the
elected county officer without regard to the spouse's age.
The annuity to a spouse shall be 66 2/3% of the amount of
retirement annuity earned by the elected county officer on
the date of death, subject to a minimum payment of 10% of
salary, provided that if an eligible spouse, regardless of
age, has in his or her care at the date of death of the
elected county officer any unmarried child or children of the
county officer, under age 18, the minimum annuity shall be
30% of the elected officer's salary, plus 10% of salary on
account of each minor child of the elected county officer,
subject to a combined total payment on account of a spouse
and minor children not to exceed 50% of the deceased
officer's salary. In the event there shall be no spouse of
the elected county officer surviving, or should a spouse
remarry or die while eligible minor children still survive
the elected county officer, each such child shall be entitled
to an annuity equal to 20% of salary of the elected officer
subject to a combined total payment on account of all such
children not to exceed 50% of salary of the elected county
officer. The salary to be used in the calculation of these
benefits shall be the same as that prescribed for determining
a retirement annuity as provided in Section 7-145.1.
Upon the death of an elected county officer occurring
after termination of service or while in receipt of a
retirement annuity, the combined total payment to a spouse
and minor children, or to minor children alone if no eligible
spouse survives, shall be limited to 75% of the amount of
retirement annuity earned by the county officer.
Adopted children shall have status as children of the
elected county officer only if the proceedings for adoption
were commenced at least one year prior to the date of the
elected county officer's death.
Marriage of a child or attainment of age 18, whichever
first occurs, shall render the child ineligible for further
consideration in the payment of an annuity to a spouse or in
the increase in the amount thereof. Upon attainment of
ineligibility of the youngest minor child of the elected
county officer, the annuity shall immediately revert to the
amount payable upon death of an elected county officer
leaving no minor children surviving him or her. If the
spouse is under age 50 at such time, the annuity as revised
shall be deferred until such age is attained. Remarriage of
a widow or widower prior to attainment of age 55 shall
disqualify the spouse from the receipt of an annuity.
(40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
Sec. 8-138. Minimum annuities - Additional provisions.
(a) An employee who withdraws after age 65 or more with
at least 20 years of service, for whom the amount of age and
service and prior service annuity combined is less than the
amount stated in this Section, shall from the date of
withdrawal, instead of all annuities otherwise provided, be
entitled to receive an annuity for life of $150 a year, plus
1 1/2% for each year of service, to and including 20 years,
and 1 2/3% for each year of service over 20 years, of his
highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal.
An employee who withdraws after 20 or more years of
service, before age 65, shall be entitled to such annuity, to
begin not earlier than upon attained age of 55 years if under
such age at withdrawal, reduced by 2% for each full year or
fractional part thereof that his attained age is less than
65, plus an additional 2% reduction for each full year or
fractional part thereof that his attained age when annuity is
to begin is less than 60 so that the total reduction at age
55 shall be 30%.
(b) An employee who withdraws after July 1, 1957, at age
60 or over, with 20 or more years of service, for whom the
age and service and prior service annuity combined, is less
than the amount stated in this paragraph, shall, from the
date of withdrawal, instead of such annuities, be entitled to
receive an annuity for life equal to 1 2/3% for each year of
service, of the highest average annual salary for any 5
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal; provided, that
in the case of any employee who withdraws on or after July 1,
1971, such employee age 60 or over with 20 or more years of
service, shall receive an annuity for life equal to 1.67% for
each of the first 10 years of service; 1.90% for each of the
next 10 years of service; 2.10% for each year of service in
excess of 20 but not exceeding 30; and 2.30% for each year of
service in excess of 30, based on the highest average annual
salary for any 4 consecutive years within the last 10 years
of service immediately preceding the date of withdrawal.
An employee who withdraws after July 1, 1957 and before
January 1, 1988, with 20 or more years of service, before age
60 years is entitled to annuity, to begin not earlier than
upon attained age of 55 years, if under such age at
withdrawal, as computed in the last preceding paragraph,
reduced 0.25% for each full month or fractional part thereof
that his attained age when annuity is to begin is less than
60 if the employee was born before January 1, 1936, or 0.5%
for each such month if the employee was born on or after
January 1, 1936.
Any employee born before January 1, 1936, who withdraws
with 20 or more years of service, and any employee with 20 or
more years of service who withdraws on or after January 1,
1988, may elect to receive, in lieu of any other employee
annuity provided in this Section, an annuity for life equal
to 1.80% for each of the first 10 years of service, 2.00% for
each of the next 10 years of service, 2.20% for each year of
service in excess of 20 but not exceeding 30, and 2.40% for
each year of service in excess of 30, of the highest average
annual salary for any 4 consecutive years within the last 10
years of service immediately preceding the date of
withdrawal, to begin not earlier than upon attained age of 55
years, if under such age at withdrawal, reduced 0.25% for
each full month or fractional part thereof that his attained
age when annuity is to begin is less than 60; except that an
employee retiring on or after January 1, 1988, at age 55 or
over but less than age 60, having at least 35 years of
service, or an employee retiring on or after July 1, 1990, at
age 55 or over but less than age 60, having at least 30 years
of service, or an employee retiring on or after the effective
date of this amendatory Act of 1997, at age 55 or over but
less than age 60, having at least 25 years of service, shall
not be subject to the reduction in retirement annuity because
of retirement below age 60.
However, in the case of an employee who retired on or
after January 1, 1985 but before January 1, 1988, at age 55
or older and with at least 35 years of service, and who was
subject under this subsection (b) to the reduction in
retirement annuity because of retirement below age 60, that
reduction shall cease to be effective January 1, 1991, and
the retirement annuity shall be recalculated accordingly.
Any employee who withdraws on or after July 1, 1990, with
20 or more years of service, may elect to receive, in lieu of
any other employee annuity provided in this Section, an
annuity for life equal to 2.20% for each year of service of
the highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal, to begin not earlier than upon attained
age of 55 years, if under such age at withdrawal, reduced
0.25% for each full month or fractional part thereof that his
attained age when annuity is to begin is less than 60; except
that an employee retiring at age 55 or over but less than age
60, having at least 30 years of service, shall not be subject
to the reduction in retirement annuity because of retirement
below age 60.
Any employee who withdraws on or after the effective date
of this amendatory Act of 1997 with 20 or more years of
service may elect to receive, in lieu of any other employee
annuity provided in this Section, an annuity for life equal
to 2.20%, for each year of service, of the highest average
annual salary for any 4 consecutive years within the last 10
years of service immediately preceding the date of
withdrawal, to begin not earlier than upon attainment of age
55 (age 50 if the employee has at least 30 years of service),
reduced 0.25% for each full month or remaining fractional
part thereof that the employee's attained age when annuity is
to begin is less than 60; except that an employee retiring at
age 50 or over with at least 30 years of service or at age 55
or over with at least 25 years of service shall not be
subject to the reduction in retirement annuity because of
retirement below age 60.
The maximum annuity payable under part (a) and (b) of
this Section shall not exceed 70% of highest average annual
salary in the case of an employee who withdraws prior to July
1, 1971, and 75% if withdrawal takes place on or after July
1, 1971. For the purpose of the minimum annuity provided in
this Section $1,500 is considered the minimum annual salary
for any year; and the maximum annual salary for the
computation of such annuity is $4,800 for any year before
1953, $6000 for the years 1953 to 1956, inclusive, and the
actual annual salary, as salary is defined in this Article,
for any year thereafter.
To preserve rights existing on December 31, 1959, for
participants and contributors on that date to the fund
created by the Court and Law Department Employees' Annuity
Act, who became participants in the fund provided for on
January 1, 1960, the maximum annual salary to be considered
for such persons for the years 1955 and 1956 is $7,500.
(c) For an employee receiving disability benefit, his
salary for annuity purposes under paragraphs (a) and (b) of
this Section, for all periods of disability benefit
subsequent to the year 1956, is the amount on which his
disability benefit was based.
(d) An employee with 20 or more years of service, whose
entire disability benefit credit period expires before
attainment of age 55 while still disabled for service, is
entitled upon withdrawal to the larger of (1) the minimum
annuity provided above, assuming he is then age 55, and
reducing such annuity to its actuarial equivalent as of his
attained age on such date or (2) the annuity provided from
his age and service and prior service annuity credits.
(e) The minimum annuity provisions do not apply to any
former municipal employee receiving an annuity from the fund
who re-enters service as a municipal employee, unless he
renders at least 3 years of additional service after the date
of re-entry.
(f) An employee in service on July 1, 1947, or who
became a contributor after July 1, 1947 and before attainment
of age 70, who withdraws after age 65, with less than 20
years of service for whom the annuity has been fixed under
this Article shall, instead of the annuity so fixed, receive
an annuity as follows:
Such amount as he could have received had the accumulated
amounts for annuity been improved with interest at the
effective rate to the date of his withdrawal, or to
attainment of age 70, whichever is earlier, and had the city
contributed to such earlier date for age and service annuity
the amount that it would have contributed had he been under
age 65, after the date his annuity was fixed in accordance
with this Article, and assuming his annuity were computed
from such accumulations as of his age on such earlier date.
The annuity so computed shall not exceed the annuity which
would be payable under the other provisions of this Section
if the employee was credited with 20 years of service and
would qualify for annuity thereunder.
(g) Instead of the annuity provided in this Article, an
employee having attained age 65 with at least 15 years of
service who withdraws from service on or after July 1, 1971
and whose annuity computed under other provisions of this
Article is less than the amount provided under this
paragraph, is entitled to a minimum annuity for life equal to
1% of the highest average annual salary, as salary is defined
and limited in this Section for any 4 consecutive years
within the last 10 years of service for each year of service,
plus the sum of $25 for each year of service. The annuity
shall not exceed 60% of such highest average annual salary.
(h) The minimum annuities provided under this Section
shall be paid in equal monthly installments.
(i) The amendatory provisions of part (b) and (g) of
this Section shall be effective July 1, 1971 and apply in the
case of every qualifying employee withdrawing on or after
July 1, 1971.
(j) The amendatory provisions of this amendatory Act of
1985 (P.A. 84-23) relating to the discount of annuity because
of retirement prior to attainment of age 60, and to the
retirement formula, for those born before January 1, 1936,
shall apply only to qualifying employees withdrawing on or
after July 18, 1985.
(k) Beginning on the effective date of this amendatory
Act of 1997 January 1, 1991, the minimum amount of employee's
annuity shall be $550 $350 per month for life for the
following classes of employees, without regard to the fact
that withdrawal occurred prior to the effective date of this
amendatory Act of 1997 January 1, 1991:
(1) any employee annuitant alive and receiving a
life annuity on the effective date of this amendatory Act
of 1997 January 1, 1991, except a reciprocal annuity;
(2) any employee annuitant alive and receiving a
term annuity on the effective date of this amendatory Act
of 1997 January 1, 1991, except a reciprocal annuity;
(3) any employee annuitant alive and receiving a
reciprocal annuity on the effective date of this
amendatory Act of 1997 January 1, 1991, whose service in
this fund is at least 5 years;
(4) any employee annuitant withdrawing after age 60
on or after the effective date of this amendatory Act of
1997 January 1, 1991, with at least 10 years of service
in this fund.
The increases granted under items (1), (2) and (3) of
this subsection (k) shall not be limited by any other Section
of this Act.
(Source: P.A. 85-964; 86-1488.)
(40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
Sec. 8-150.1. Minimum annuities for widows. The widow
(otherwise eligible for widow's annuity under other Sections
of this Article 8) of an employee hereinafter described, who
retires from service or dies while in the service subsequent
to the effective date of this amendatory provision, and for
which widow the amount of widow's annuity and widow's prior
service annuity combined, fixed or provided for such widow
under other provisions of this Article is less than the
amount provided in this Section, shall, from and after the
date her otherwise provided annuity would begin, in lieu of
such otherwise provided widow's and widow's prior service
annuity, be entitled to the following indicated amount of
annuity:
(a) The widow of any employee who dies while in service
on or after the date on which he attains age 60 if the death
occurs before July 1, 1990, or on or after the date on which
he attains age 55 if the death occurs on or after July 1,
1990, with at least 20 years of service, or on or after the
date on which he attains age 50 if the death occurs on or
after the effective date of this amendatory Act of 1997 with
at least 30 years of service, shall be entitled to an annuity
equal to one-half of the amount of annuity which her deceased
husband would have been entitled to receive had he withdrawn
from the service on the day immediately preceding the date of
his death, conditional upon such widow having attained the
age of 60 or more years on such date if the death occurs
before July 1, 1990, or age 55 or more if the death occurs on
or after July 1, 1990. Such amount of widow's annuity shall
not, however, exceed the sum of $500 a month if the
employee's death in service occurs before January 23, 1987.
The widow's annuity shall not be limited to a maximum dollar
amount if the employee's death in service occurs on or after
January 23, 1987.
If the employee dies in service before July 1, 1990, and
if such widow of such described employee shall not be 60 or
more years of age on such date of death, the amount provided
in the immediately preceding paragraph for a widow 60 or more
years of age, shall, in the case of such younger widow, be
reduced by 0.25% for each month that her then attained age is
less than 60 years if the employee was born before January 1,
1936 or dies in service on or after January 1, 1988, or by
0.5% for each month that her then attained age is less than
60 years if the employee was born on or after July 1, 1936
and dies in service before January 1, 1988.
If the employee dies in service on or after July 1, 1990,
and if the widow of the employee has not attained age 55 on
or before the employee's date of death, the amount otherwise
provided in this subsection (a) shall be reduced by 0.25% for
each month that her then attained age is less than 55 years.
(b) The widow of any employee who dies subsequent to the
date of his retirement on annuity, and who so retired on or
after the date on which he attained the age of 60 or more
years if retirement occurs before July 1, 1990, or on or
after the date on which he attained age 55 if retirement
occurs on or after July 1, 1990, with at least 20 years of
service, or on or after the date on which he attained age 50
if the retirement occurs on or after the effective date of
this amendatory Act of 1997 with at least 30 years of
service, shall be entitled to an annuity equal to one-half of
the amount of annuity which her deceased husband received as
of the date of his retirement on annuity, conditional upon
such widow having attained the age of 60 or more years on the
date of her husband's retirement on annuity if retirement
occurs before July 1, 1990, or age 55 or more if retirement
occurs on or after July 1, 1990. Such amount of widow's
annuity shall not, however, exceed the sum of $500 a month if
the employee's death occurs before January 23, 1987. The
widow's annuity shall not be limited to a maximum dollar
amount if the employee's death occurs on or after January 23,
1987, regardless of the date of retirement; provided that, if
retirement was before January 23, 1987, the employee or
eligible spouse repays the excess spouse refund with interest
at the effective rate from the date of refund to the date of
repayment.
If the date of the employee's retirement on annuity is
before July 1, 1990, and if such widow of such described
employee shall not have attained such age of 60 or more years
on such date of her husband's retirement on annuity, the
amount provided in the immediately preceding paragraph for a
widow 60 or more years of age on the date of her husband's
retirement on annuity, shall, in the case of such then
younger widow, be reduced by 0.25% for each month that her
then attained age was less than 60 years if the employee was
born before January 1, 1936 or withdraws from service on or
after January 1, 1988, or by 0.5% for each month that her
then attained age is less than 60 years if the employee was
born on or after January 1, 1936 and withdraws from service
before January 1, 1988.
If the date of the employee's retirement on annuity is on
or after July 1, 1990, and if the widow of the employee has
not attained age 55 by the date of the employee's retirement
on annuity, the amount otherwise provided in this subsection
(b) shall be reduced by 0.25% for each month that her then
attained age is less than 55 years.
(c) The foregoing provisions relating to minimum
annuities for widows shall not apply to the widow of any
former municipal employee receiving an annuity from the fund
on August 9, 1965 or on the effective date of this amendatory
provision, who re-enters service as a municipal employee,
unless such employee renders at least 3 years of additional
service after the date of re-entry.
(d) In computing the amount of annuity which the husband
specified in the foregoing paragraphs (a) and (b) of this
Section would have been entitled to receive, or received,
such amount shall be the annuity to which such husband would
have been, or was entitled, before reduction in the amount of
his annuity for the purposes of the voluntary optional
reversionary annuity provided for in Sec. 8-139 of this
Article, if such option was elected.
(e) The amendatory provisions of part (a) and (b) of
this Section (increasing the maximum from $300 to $400 a
month) shall be effective as of July 1, 1971, and apply in
the case of every qualifying widow whose husband dies while
in service on or after July 1, 1971 or withdraws and enters
on annuity on or after July 1, 1971.
(f) The amendments of part (a) and (b) of this Section
by this amendatory Act of 1983 (increasing the maximum from
$400 to $500 a month) shall be effective as of January 1,
1984 and shall apply in the case of every qualifying widow
whose husband dies while in the service on or after January
1, 1984, or withdraws and enters on annuity on or after
January 1, 1984.
(g) The amendatory provisions of this amendatory Act of
1985 relating to annuity discount because of age for widows
of employees born before January 1, 1936, shall apply only to
qualifying widows of employees withdrawing or dying in
service on or after July 18, 1985.
(h) Beginning on the effective date of this amendatory
Act of 1997 January 1, 1991, the minimum amount of widow's
annuity shall be $500 $300 per month for life for the
following classes of widows, without regard to the fact that
the death of the employee occurred prior to the effective
date of this amendatory Act of 1997 January 1, 1991:
(1) any widow annuitant alive and receiving a life
annuity on the effective date of this amendatory Act of
1997 January 1, 1991, except a reciprocal annuity;
(2) any widow annuitant alive and receiving a term
annuity on the effective date of this amendatory Act of
1997 January 1, 1991, except a reciprocal annuity;
(3) any widow annuitant alive and receiving a
reciprocal annuity on the effective date of this
amendatory Act of 1997 January 1, 1991, whose employee
spouse's service in this fund was at least 5 years;
(4) the widow of an employee with at least 10 years
of service in this fund who dies after retirement, if the
retirement occurred prior to the effective date of this
amendatory Act of 1997 January 1, 1991;
(5) the widow of an employee with at least 10 years
of service in this fund who dies after retirement, if
withdrawal occurs on or after the effective date of this
amendatory Act of 1997 January 1, 1991;
(6) the widow of an employee who dies in service
with at least 5 years of service in this fund, if the
death in service occurs on or after the effective date of
this amendatory Act of 1997 January 1, 1991.
The increases granted under items (1), (2), (3) and (4)
of this subsection (h) shall not be limited by any other
Section of this Act.
(i) The widow of an employee who retired or died in
service on or after January 1, 1985 and before July 1, 1990,
at age 55 or older, and with at least 35 years of service
credit, shall be entitled to have her widow's annuity
increased, effective January 1, 1991, to an amount equal to
50% of the retirement annuity that the deceased employee
received on the date of retirement, or would have been
eligible to receive if he had retired on the day preceding
the date of his death in service, provided that if the widow
had not attained age 60 by the date of the employee's
retirement or death in service, the amount of the annuity
shall be reduced by 0.25% for each month that her then
attained age was less than age 60 if the employee's
retirement or death in service occurred on or after January
1, 1988, or by 0.5% for each month that her attained age is
less than age 60 if the employee's retirement or death in
service occurred prior to January 1, 1988. However, in cases
where a refund of excess contributions for widow's annuity
has been paid by the Fund, the increase in benefit provided
by this subsection (i) shall be contingent upon repayment of
the refund to the Fund with interest at the effective rate
from the date of refund to the date of payment.
(j) If a deceased employee is receiving a retirement
annuity at the time of death and that death occurs on or
after the effective date of this amendatory Act of 1997, the
widow may elect to receive, in lieu of any other annuity
provided under this Article, 50% of the deceased employee's
retirement annuity at the time of death reduced by 0.25% for
each month that the widow's age on the date of death is less
than 55. However, in cases where a refund of excess
contributions for widow's annuity has been paid by the Fund,
the benefit provided by this subsection (j) is contingent
upon repayment of the refund to the Fund with interest at the
effective rate from the date of refund to the date of
payment.
(Source: P.A. 85-964; 86-1488.)
(40 ILCS 5/8-159) (from Ch. 108 1/2, par. 8-159)
Sec. 8-159. Amount of child's annuity. Beginning on the
effective date of this amendatory Act of 1997 January 1,
1988, the amount of a child's annuity shall be $220 $120 per
month for each child while the spouse of the deceased
employee parent survives, and $250 $150 per month for each
child when no such spouse survives, and shall be subject to
the following limitations:
(1) If the combined annuities for the widow and children
of an employee whose death resulted from injury incurred in
the performance of duty, or for the children where a widow
does not exist, exceed 70% of the employee's final monthly
salary, the annuity for each child shall be reduced pro rata
so that the combined annuities for the family shall not
exceed such limitation.
(2) For the family of an employee whose death is the
result of any cause other than injury incurred in the
performance of duty, in which the combined annuities for the
family exceed 60% of the employee's final monthly salary, the
annuity for each child shall be reduced pro rata so that the
combined annuities for the family shall not exceed such
limitation.
(3) The increase in child's annuity provided by this
amendatory Act of 1997 1987 shall apply to all child's
annuities being paid on or after the effective date of this
amendatory Act of 1997. January 1, 1988, subject to The
above limitations on the combined annuities for a family in
parts (1) and (2) of this Section do not apply to families of
employees who died before the effective date of this
amendatory Act of 1997.
(4) The amendments to parts (1) and (2) of this Section
made by Public Act 84-1472 (eliminating the further
limitation that the monthly combined family amount shall not
exceed $500 plus 10% of the employee's final monthly salary)
shall apply in the case of every qualifying child whose
employee parent dies in the service or enters on annuity on
or after January 23, 1987.
(Source: P.A. 85-964.)
(40 ILCS 5/8-164.1) (from Ch. 108 1/2, par. 8-164.1)
Sec. 8-164.1. Group health benefit.
(a) For the purposes of this Section: (1) "annuitant"
means a person receiving an age and service annuity, a prior
service annuity, a widow's annuity, a widow's prior service
annuity, or a minimum annuity on or after January 1, 1988,
under Article 5, 6, 8 or 11, by reason of previous employment
by the City of Chicago (hereinafter, in this Section, "the
city"); (2) "Medicare Plan annuitant" means an annuitant
described in item (1) who is eligible for Medicare benefits;
and (3) "non-Medicare Plan annuitant" means an annuitant
described in item (1) who is not eligible for Medicare
benefits.
(b) The city shall continue to offer group health
benefits to annuitants and their eligible dependents through
June 30, 2002. The same basic city health care plan
available as of June 30, 1988 (hereinafter called the basic
city plan) shall cease to be a plan offered by the city,
except as specified in subparagraphs (4) and (5) below, and
shall be closed to new enrollment or transfer of coverage for
any non-Medicare Plan annuitant as of the effective date of
this amendatory Act of 1997. The city shall offer
non-Medicare Plan annuitants and their eligible dependents
the option of enrolling in its Annuitant Preferred Provider
Plan, and may offer additional plans for any annuitant. The
city may amend, modify, or terminate any of its additional
plans at its sole discretion. If the city offers more than
one annuitant plan, the city shall allow annuitants to
convert coverage from one city annuitant plan to another,
except the basic city plan, during times designated by the
city, which periods of time shall occur at least annually.
For the period dating from the effective date of this
amendatory Act of 1997 through June 30, 2002, monthly premium
rates may be increased for annuitants during the time of
their participation in non-Medicare plans, except as provided
in subparagraphs (1) through (4) of this subsection.
(1) For non-Medicare Plan annuitants who retired
prior to January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
not exceed the highest premium rate chargeable under any
city non-Medicare Plan annuitant coverage as of December
1, 1996.
(2) For non-Medicare Plan annuitants who retire on
or after January 1, 1988, the annuitant's share of
monthly premium for non-Medicare Plan coverage only shall
be the rate in effect on December 1, 1996, with monthly
premium increases to take effect no sooner than April 1,
1998 at the lower of (i) the premium rate determined
pursuant to subsection (g) or (ii) 10% of the immediately
previous month's rate for similar coverage.
(3) In no event shall any non-Medicare Plan
annuitant's share of monthly premium for non-Medicare
Plan coverage exceed 10% of the annuitant's monthly
annuity.
(4) Non-Medicare Plan annuitants who are enrolled
in the basic city plan as of July 1, 1998 may remain in
the basic city plan, if they so choose, on the condition
that they are not entitled to the caps on rates set forth
in subparagraphs (1) through (3), and their premium rate
shall be the rate determined in accordance with
subsections (c) and (g).
(5) Medicare Plan annuitants who are currently
enrolled in the basic city plan for Medicare eligible
annuitants may remain in that plan, if they so choose,
through June 30, 2002. Annuitants shall not be allowed
to enroll in or transfer into the basic city plan for
Medicare eligible annuitants on or after July 1, 1999.
The city shall continue to offer annuitants a
supplemental Medicare Plan for Medicare eligible
annuitants through June 30, 2002, and the city may offer
additional plans to Medicare eligible annuitants in its
sole discretion. All Medicare Plan annuitant monthly
rates shall be determined in accordance with subsections
(c) and (g).
(c) Effective the date the initial increased annuitant
payments pursuant to subsection (g) take effect, The city
shall pay 50% of the aggregated costs of the claims or
premiums, whichever is applicable, as determined in
accordance with subsection (g), of annuitants and their
dependents under all health care plans offered by the city.
The city may reduce its obligation by application of price
reductions obtained as a result of financial arrangements
with providers or plan administrators. The claims or
premiums of all annuitants and their dependents under all of
the plans offered by the city shall be aggregated for the
purpose of calculating the city's payment required under this
subsection, as well as for the setting of rates of payment
for annuitants as required under subsection (g).
(d) From January 1, 1988 until December 31, 1992, the
board shall pay to the city on behalf of each of the board's
annuitants who chooses to participate in any of the city's
plans the following amounts: up to a maximum of $65 per month
for each such annuitant who is not qualified to receive
medicare benefits, and up to a maximum of $35 per month for
each such annuitant who is qualified to receive medicare
benefits. From January 1, 1993 until June 30, 2002 December
31, 1997, the board shall pay to the city on behalf of each
of the board's annuitants who chooses to participate in any
of the city's plans the following amounts: up to a maximum of
$75 per month for each such annuitant who is not qualified to
receive medicare benefits, and up to a maximum of $45 per
month for each such annuitant who is qualified to receive
medicare benefits.
For the period January 1, 1988 through the effective date
of this amendatory Act of 1989, payments under this Section
shall be reduced by the amounts paid by or on behalf of the
board's annuitants covered during that period.
Commencing on the effective date of this amendatory Act
of 1989, the board is authorized to pay to the board of
education on behalf of each person who chooses to participate
in the board of education's plan the amounts specified in
this subsection (d) during the years indicated. For the
period January 1, 1988 through the effective date of this
amendatory Act of 1989, the board shall pay to the board of
education annuitants who participate in the board of
education's health benefits plan for annuitants the following
amounts: $10 per month to each annuitant who is not qualified
to receive medicare benefits, and $14 per month to each
annuitant who is qualified to receive medicare benefits.
The payments described in this subsection shall be paid
from the tax levy authorized under Section 8-189; such
amounts shall be credited to the reserve for group hospital
care and group medical and surgical plan benefits, and all
payments to the city required under this subsection shall be
charged against it.
(e) The city's obligations under subsections (b) and (c)
shall terminate on June 30, 2002 December 31, 1997, except
with regard to covered expenses incurred but not paid as of
that date. This subsection shall not affect other
obligations that may be imposed by law.
(f) The group coverage plans described in this Section
are not and shall not be construed to be pension or
retirement benefits for purposes of Section 5 of Article XIII
of the Illinois Constitution of 1970.
(g) For each annuitant plan offered by the city, the
aggregate cost of claims, as reflected in the claim records
of the plan administrator, and premiums for each calendar
year from 1989 through 1997 of all annuitants and dependents
covered by the city's group health care plans shall be
estimated by the city, based upon a written determination by
a qualified independent actuary to be appointed and paid by
the city and the board. If the such estimated annual cost
for each annuitant plan offered by the city is more than the
estimated amount to be contributed by the city for that plan
pursuant to subsections (b) and (c) during that year plus the
estimated amounts to be paid pursuant to subsection (d) and
by the other pension boards on behalf of other participating
annuitants, the difference shall be paid by all participating
annuitants participating in the plan, except as provided in
subsection (b). The city, based upon the determination of
the independent actuary, shall set the monthly amounts to be
paid by the participating annuitants. The initial
determination of such payments shall be prospective only and
shall be based upon the estimated costs for the balance of
the year. The board may deduct the amounts to be paid by its
annuitants from the participating annuitants' monthly
annuities.
If it is determined from the city's annual audit, or from
audited experience data, that the total amount paid by all
participating annuitants was more or less than the difference
between (1) the cost of providing the group health care
plans, and (2) the sum of the amount to be paid by the city
as determined under subsection (c) and the amounts paid by
all the pension boards, then the independent actuary and the
city shall account for the excess or shortfall in the next
year's payments by annuitants, except as provided in
subsection (b).
(h) An annuitant may elect to terminate coverage in a
plan at the end of any month any time, which election shall
terminate the annuitant's obligation to contribute toward
payment of the excess described in subsection (g).
(i) The city shall advise the board of all proposed
premium increases for health care at least 75 days prior to
the effective date of the change, and any increase shall be
prospective only.
(Source: P.A. 86-273.)
(40 ILCS 5/9-101) (from Ch. 108 1/2, par. 9-101)
Sec. 9-101. Creation of fund. In each county of more
than 3,000,000 500,000 inhabitants a County Employees' and
Officers' Annuity and Benefit Fund shall be created, set
apart, maintained and administered, in the manner prescribed
in this Article, for the benefit of the employees and
officers herein designated and their beneficiaries.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/9-120.1 new)
Sec. 9-120.1. CTA - continued participation; military
service credit.
(a) A person who (i) has at least 20 years of creditable
service in the Fund, (ii) has not begun receiving a
retirement annuity under this Article, and (iii) is employed
in a position under which he or she is eligible to actively
participate in the retirement system established under
Section 22-101 of this Code may elect, after he or she ceases
to be a participant but in no event after June 1, 1998, to
continue his or her participation in this Fund while employed
by the Chicago Transit Authority, for up to 10 additional
years, by making written application to the Board.
(b) A person who elects to continue participation under
this Section shall make contributions directly to the Fund,
not less frequently than monthly, based on the person's
actual Chicago Transit Authority compensation and the rates
applicable to employees under this Fund. Creditable service
shall be granted to any person for the period, not exceeding
10 years, during which the person continues participation in
this Fund under this Section and continues to make
contributions as required. For periods of service
established under this Section, the person's actual Chicago
Transit Authority compensation shall be considered his or her
salary for purposes of calculating benefits under this
Article.
(c) A person who elects to continue participation under
this Section may cancel that election at any time.
(d) A person who elects to continue participation under
this Section may establish service credit in this Fund for
periods of employment by the Chicago Transit Authority prior
to that election, by applying in writing and paying to the
Fund an amount representing employee contributions for the
service being established, based on the person's actual
Chicago Transit Authority compensation and the rates then
applicable to employees under this Fund, without interest.
(e) A person who qualifies under this Section may elect
to purchase credit for up to 4 years of military service,
whether or not that service followed service as a county
employee. The military service need not have been served in
wartime, but the employee must not have been dishonorably
discharged. To establish this creditable service the
applicant must pay to the Fund, on or before July 1, 1998, an
amount determined by the Fund to represent the employee
contributions for the creditable service, based on the
employee's rate of compensation on his or her last day of
service as a contributor before the military service or his
or her salary on the first day of service following the
military service, whichever is greater, plus interest at the
effective rate from the date of discharge to the date of
payment. For the purposes of this subsection, "military
service" includes service in the United States armed forces
reserves.
(f) Notwithstanding any other provision of this Section,
a person may not establish creditable service under this
Section for any period for which the person receives credit
under any other public employee retirement system, including
the retirement system established under Section 22-101 of
this Code, unless the credit under that retirement system has
been irrevocably relinquished.
(40 ILCS 5/9-121.13)
Sec. 9-121.13. State's Attorney employee Transfer of
Article 5 credits.
(a) An active participant in the Fund who was employed
by the office of the Cook County State's Attorney on January
1, 1995 may transfer to this Fund credits and creditable
service accumulated under the pension fund established under
Article 5 of this Code, as provided in Section 5-237, by
submitting a written application to the Fund and paying to
the Fund the amount, if any, by which the amount transferred
to the Fund under Section 5-237 is less than the amount of
employee and employer contributions that would have been
received by the Fund if the service being transferred had
been served as a participant of this Fund, including interest
at the rate of 6% per year, compounded annually, from the
date of the service to the date of payment.
(b) Until July 1, 1998, an active participant in the
Fund who is a member of the county police department may
transfer to this Fund credits and creditable service
accumulated under the pension fund established under Article
5 of this Code, as provided in Section 5-237, by submitting a
written application to the Fund and paying to the Fund the
amount, if any, by which the amount transferred to the Fund
under Section 5-237 is less than the amount of employee and
employer contributions that would have been received by the
Fund if the service being transferred had been served as a
participant of this Fund, including interest at the rate of
6% per year, compounded annually, from the date of the
service to the date of payment.
(c) The applicant may elect to have the service
transferred be deemed service as a member of the county
police department; if the applicant so elects, the required
payment shall be calculated on the basis of the rates
applicable to members of the county police department.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/9-133) (from Ch. 108 1/2, par. 9-133)
Sec. 9-133. Automatic increase in annuity.
(a) An employee who retired or retires from service
after December 31, 1959, having attained age 60 or more or,
beginning January 1, 1991, having attained 30 or more years
of creditable service, shall, in the month of January of the
year following the year in which the first anniversary of
retirement occurs, have his then fixed and payable monthly
annuity increased by 1 1/2%, and such first fixed annuity as
granted at retirement increased by a further 1 1/2% in
January of each year thereafter. Beginning with January of
the year 1972, such increases shall be at the rate of 2% in
lieu of the aforesaid specified 1 1/2%. Beginning with
January of the year 1982, such increases shall be at the rate
of 3% in lieu of the aforesaid specified 2%. Beginning
January 1, 1998, these increases shall be at the rate of 3%
of the current amount of the annuity, including any previous
increases received under this Article, without regard to
whether the annuitant is in service on or after the effective
date of this amendatory Act of 1997.
An employee who retires on annuity before age 60 and,
beginning January 1, 1991, with less than 30 years of
creditable service shall receive such increases beginning
with January of the year immediately following the year in
which he attains the age of 60 years. An employee who
retires on annuity before age 60 and before January 1, 1991,
with at least 30 years of creditable service, shall be
entitled to receive the first increase under this subsection
no later than January 1, 1993.
For an employee who, in accordance with the provisions of
Section 9-108.1 of this Act, shall have become a member of
the State System established under Article 14 on February 1,
1974, the first such automatic increase shall begin in
January of 1975.
(b) Subsection (a) is not applicable to an employee
retiring and receiving a term annuity, as defined in this
Act, nor to any otherwise qualified employee who retires
before he makes employee contributions (at the 1/2 of 1% rate
as provided in this Section) for this additional annuity for
not less than the equivalent of one full year. Such
employee, however, shall make arrangement to pay to the fund
a balance of such contributions, based on his final salary,
as will bring such 1/2 of 1% contributions, computed without
interest, to the equivalent of one year's contributions.
Beginning with the month of January, 1960, each employee
shall contribute by means of salary deductions 1/2 of 1% of
each salary payment, concurrently with and in addition to the
employee contributions otherwise provided for annuity
purposes.
Each such additional contribution shall be credited to an
account in the prior service annuity reserve, to be used,
together with county contributions, to defray the cost of the
specified annuity increments. Any balance in such account as
of the beginning of each calendar year shall be credited with
interest at the rate of 3% per annum.
Such additional employee contributions are not
refundable, except to an employee who withdraws and applies
for refund under this Article, or applies for annuity, and
also in cases where a term annuity becomes payable. In such
cases his contributions shall be refunded, without interest,
and charged to the prior service annuity reserve.
(Source: P.A. 87-794; 87-1265.)
(40 ILCS 5/9-133.1) (from Ch. 108 1/2, par. 9-133.1)
Sec. 9-133.1. Automatic increases in annuity for certain
heretofore retired participants. A retired employee retired
at age 55 or over and who (a) is receiving annuity based on a
service credit of 20 or more years, and (b) does not qualify
for the automatic increases in annuity provided for in Sec.
9-133 of this Article, and (c) elects to make a contribution
to the Fund at a time and manner prescribed by the Retirement
Board, of a sum equal to 1% of the final average monthly
salary forming the basis of the calculation of their annuity
multiplied by years of credited service, or 1% of their final
monthly salary multiplied by years of credited service in any
case where the final average salary is not used in the
calculation, shall have his original fixed and payable
monthly amount of annuity increased in January of the year
following the year in which he attains the age of 65 years,
if such age of 65 years is attained in the year 1969 or
later, by an amount equal to 1 1/2%, and by an equal
additional 1 1/2% in January of each year thereafter.
Beginning with January of the year 1972, such increases shall
be at the rate of 2% in lieu of the aforesaid specified 1
1/2%. Beginning with January of the year 1982, such
increases shall be at the rate of 3% in lieu of the aforesaid
specified 2%. Beginning January 1, 1998, these increases
shall be at the rate of 3% of the current amount of the
annuity, including any previous increases received under this
Article, without regard to whether the annuitant is in
service on or after the effective date of this amendatory Act
of 1997.
In those cases in which the retired employee receiving
annuity has attained the age of 66 or more years in the year
1969, he shall have such annuity increased in January of the
year 1970 by an amount equal to 1 1/2% multiplied by the
number equal to the number of months of January elapsing from
and including January of the year immediately following the
year he attained the age of 65 years if retired at or prior
to age 65, or from and including January of the year
immediately following the year of retirement if retired at an
age greater than 65 years, to and including January of the
year 1970, and by an equal additional 1 1/2% in January of
each year thereafter. Beginning with January of the year
1972, such increases shall be at the rate of 2% in lieu of
the aforesaid specified 1 1/2%. Beginning with January of
the year 1982, such increases shall be at the rate of 3% in
lieu of the aforesaid specified 2%. Beginning January 1,
1998, these increases shall be at the rate of 3% of the
current amount of the annuity, including any previous
increases received under this Article, without regard to
whether the annuitant is in service on or after the effective
date of this amendatory Act of 1997.
To defray the annual cost of such increases, the annual
interest income of the Fund, accruing from investments held
by the Fund, exclusive of gains or losses on sales or
exchanges of assets during the year, over and above 4% a
year, shall be used to the extent necessary and available to
finance the cost of such increases for the following year,
and such amount shall be transferred as of the end of each
year, beginning with the year 1969, to a Fund account
designated as the Supplementary Payment Reserve from the
Investment and Interest Reserve set forth in Sec. 9-214. The
sums contributed by annuitants as provided for in this
Section shall also be placed in the aforesaid Supplementary
Payment Reserve and shall be applied for and used for the
purposes of such Fund account, together with the aforesaid
interest.
In the event the monies in the Supplementary Payment
Reserve in any year arising from: (1) the available interest
income as defined hereinbefore and accruing in the preceding
year above 4% a year and (2) the contributions by retired
persons, as set forth hereinbefore, are insufficient to make
the total payments to all persons estimated to be entitled to
the annuity increases specified hereinbefore, then (3) any
interest earnings over 4% a year beginning with the year 1969
which were not previously used to finance such increases and
which were transferred to the Prior Service Annuity Reserve
may be used to the extent necessary and available to provide
sufficient funds to finance such increases for the current
year, and such sums shall be transferred from the Prior
Service Annuity Reserve.
In the event the total monies available in the
Supplementary Payment Reserve from the preceding indicated
sources are insufficient to make the total payments to all
persons entitled to such increases for the year, a
proportionate amount computed as the ratio of the monies
available to the total of the total payments for that year
shall be paid to each person for that year.
The Fund shall be obligated for the payment of the
increases in annuity as provided for in this Section only to
the extent that the assets for such purpose, as specified
herein, are available.
(Source: P.A. 83-1362.)
(40 ILCS 5/9-134.3 new)
Sec. 9-134.3. Early retirement incentives.
(a) To be eligible for the benefits provided in this
Section, a person must:
(1) be a current contributing member of the Fund
established under this Article who, on May 1, 1997 and
within 30 days prior to the date of retirement, is (i) in
active payroll status in a position of employment under
this Article or (ii) receiving disability benefits under
Section 9-156 or 9-157;
(2) have not previously retired from the Fund;
(3) file with the Board before October 1, 1997, a
written application requesting the benefits provided in
this Section;
(4) elect to retire under this Section on or after
September 1, 1997 and on or before February 28, 1998 (or
the date established under subsection (d), if
applicable);
(5) have attained age 55 on or before the date of
retirement and before February 28, 1998; and
(6) have at least 10 years of creditable service in
the Fund, excluding service in any of the other
participating systems under the Retirement Systems
Reciprocal Act, by the effective date of the retirement
annuity or February 28, 1998, whichever occurs first.
(b) An employee who qualifies for the benefits provided
under this Section shall be entitled to the following:
(1) The employee's retirement annuity, as
calculated under the other provisions of this Article,
shall be increased at the time of retirement by an amount
equal to 1% of the employee's average annual salary for
the highest 4 consecutive years within the last 10 years
of service, multiplied by the employee's number of years
of service credit in this Fund up to a maximum of 10
years; except that the total retirement annuity,
including any additional benefits elected under Section
9-121.6 or 9-179.3, shall not exceed 80% of that highest
average annual salary.
(2) If the employee's retirement annuity is
calculated under Section 9-134, the employee shall not be
subject to the reduction in retirement annuity because of
retirement below age 60 that is otherwise required under
that Section.
(c) A person who elects to retire under the provisions
of this Section thereby relinquishes his or her right, if
any, to have the retirement annuity calculated under the
alternative formula formerly set forth in Section 20-122 of
the Retirement Systems Reciprocal Act.
(d) In the case of an employee whose immediate
retirement could jeopardize public safety or create hardship
for the employer, the deadline for retirement provided in
subdivision (a)(4) of this Section may be extended to a
specified date, no later than August 31, 1998, by the
employee's department head, with the approval of the
President of the County Board. In the case of an employee
who is not employed by a department of the County, the
employee's "department head", for the purposes of this
Section, shall be a person designated by the President of the
County Board.
(e) Notwithstanding Section 9-161, an annuitant who
reenters service under this Article after receiving a
retirement annuity based on benefits provided under this
Section thereby forfeits the right to continue to receive
those benefits and shall have his or her retirement annuity
recalculated without the benefits provided in this Section.
(f) This Section also applies to the Fund established
under Article 10 of this Code.
(40 ILCS 5/9-146.2 new)
Sec. 9-146.2. Automatic annual increase in widow's
annuity.
(a) Every widow's annuity, other than a term annuity,
shall be increased on January 1, 1998 or the January 1
occurring on or immediately after the first anniversary of
the deceased employee's death, whichever occurs later, by an
amount equal to 3% of the amount of the annuity.
On each January 1 after the date of the initial increase
under this Section, the widow's annuity shall be increased by
an amount equal to 3% of the amount of the widow's annuity
payable at the time of the increase, including any increases
previously granted under this Article.
(b) Limitations on the maximum amount of widow's annuity
imposed under Section 9-150 do not apply to the annual
increases provided under this Section.
(c) The increases provided under this Section also apply
to compensation annuities and supplemental annuities payable
under Section 9-147. The increases provided under this
Section do not apply to term annuities.
(40 ILCS 5/9-179.3) (from Ch. 108 1/2, par. 9-179.3)
Sec. 9-179.3. Optional plan of additional benefits and
contributions.
(a) While this plan is in effect, an employee may
establish additional optional credit for additional optional
benefits by electing in writing at any time to make
additional optional contributions. The employee may
discontinue making the additional optional contributions at
any time by notifying the fund in writing.
(b) Additional optional contributions for the additional
optional benefits shall be as follows:
(1) For service after the option is elected, an
additional contribution of 3% of salary shall be
contributed to the fund on the same basis and under the
same conditions as contributions required under Sections
9-170 and 9-176.
(2) For service before the option is elected, an
additional contribution of 3% of the salary for the
applicable period of service, plus interest at the
effective rate from the date of service to the date of
payment. All payments for past service must be paid in
full before credit is given. No additional optional
contributions may be made for any period of service for
which credit has been previously forfeited by acceptance
of a refund, unless the refund is repaid in full with
interest at the effective rate from the date of refund to
the date of repayment.
(c) Additional optional benefits shall accrue for all
periods of eligible service for which additional
contributions are paid in full. The additional benefit shall
consist of an additional 1% for each year of service for
which optional contributions have been paid, based on the
highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal, to be added to the employee retirement
annuity benefits as otherwise computed under this Article.
The calculation of these additional benefits shall be subject
to the same terms and conditions as are used in the
calculation of retirement annuity under Section 9-134. The
additional benefit shall be included in the calculation of
the automatic annual increase in annuity, and in the
calculation of widow's annuity, where applicable. However no
additional benefits will be granted which produce a total
annuity greater than the applicable maximum established for
that type of annuity in this Article, and additional benefits
shall not apply to any benefit computed under Section
9-128.1.
(d) Refunds of additional optional contributions shall
be made on the same basis and under the same conditions as
provided under Sections 9-164, 9-166 and 9-167. Interest
shall be credited at the effective rate on the same basis and
under the same conditions as for other contributions.
(e) Optional contributions shall be accounted for in a
separate Optional Contribution Reserve.
(f) The tax levy, computed under Section 9-169, shall be
based on employee contributions including the amount of
optional additional employee contributions.
(g) Service eligible under this Section may include only
service as an employee of the County as defined in Section
9-108, and subject to Sections 9-219 and 9-220. No service
granted under Section 9-121.1, 9-121.4 or 9-179.2 shall be
eligible for optional service credit. No optional service
credit may be established for any military service, or for
any service under any other Article of this Code. Optional
service credit may be established for any period of
disability paid from this fund, if the employee makes
additional optional contributions for such periods of
disability.
(h) This plan of optional benefits and contributions
shall not apply to any former county employee receiving an
annuity from the fund, who re-enters service as a County
employee, unless he renders at least 3 years of additional
service after the date of re-entry.
(i) The effective date of the optional plan of
additional benefits and contributions shall be July 1, 1985,
or the date upon which approval is received from the Internal
Revenue Service, whichever is later.
(j) This plan of additional benefits and contributions
shall expire July 1, 2002 1997. No additional contributions
may be made after that date, and no additional benefits will
accrue after that date.
(Source: P.A. 86-1027; 87-794.)
(40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
Sec. 11-134. Minimum annuities.
(a) An employee whose withdrawal occurs after July 1,
1957 at age 60 or over, with 20 or more years of service, (as
service is defined or computed in Section 11-216), for whom
the age and service and prior service annuity combined is
less than the amount stated in this section, shall, from and
after the date of withdrawal, in lieu of all annuities
otherwise provided in this Article, be entitled to receive an
annuity for life of an amount equal to 1 2/3% for each year
of service, of the highest average annual salary for any 5
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal; provided, that
in the case of any employee who withdraws on or after July 1,
1971, such employee age 60 or over with 20 or more years of
service, shall be entitled to instead receive an annuity for
life equal to 1.67% for each of the first 10 years of
service; 1.90% for each of the next 10 years of service;
2.10% for each year of service in excess of 20 but not
exceeding 30; and 2.30% for each year of service in excess of
30, based on the highest average annual salary for any 4
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal.
An employee who withdraws after July 1, 1957 and before
January 1, 1988, with 20 or more years of service, before age
60, shall be entitled to an annuity, to begin not earlier
than age 55, if under such age at withdrawal, as computed in
the last preceding paragraph, reduced 0.25% if the employee
was born before January 1, 1936, or 0.5% if the employee was
born on or after January 1, 1936, for each full month or
fractional part thereof that his attained age when such
annuity is to begin is less than 60.
Any employee born before January 1, 1936 who withdraws
with 20 or more years of service, and any employee with 20 or
more years of service who withdraws on or after January 1,
1988, may elect to receive, in lieu of any other employee
annuity provided in this Section, an annuity for life equal
to 1.80% for each of the first 10 years of service, 2.00% for
each of the next 10 years of service, 2.20% for each year of
service in excess of 20, but not exceeding 30, and 2.40% for
each year of service in excess of 30, of the highest average
annual salary for any 4 consecutive years within the last 10
years of service immediately preceding the date of
withdrawal, to begin not earlier than upon attained age of 55
years, if under such age at withdrawal, reduced 0.25% for
each full month or fractional part thereof that his attained
age when annuity is to begin is less than 60; except that an
employee retiring on or after January 1, 1988, at age 55 or
over but less than age 60, having at least 35 years of
service, or an employee retiring on or after July 1, 1990, at
age 55 or over but less than age 60, having at least 30 years
of service, or an employee retiring on or after the effective
date of this amendatory Act of 1997, at age 55 or over but
less than age 60, having at least 25 years of service, shall
not be subject to the reduction in retirement annuity because
of retirement below age 60.
However, in the case of an employee who retired on or
after January 1, 1985 but before January 1, 1988, at age 55
or older and with at least 35 years of service, and who was
subject under this subsection (a) to the reduction in
retirement annuity because of retirement below age 60, that
reduction shall cease to be effective January 1, 1991, and
the retirement annuity shall be recalculated accordingly.
Any employee who withdraws on or after July 1, 1990, with
20 or more years of service, may elect to receive, in lieu of
any other employee annuity provided in this Section, an
annuity for life equal to 2.20% for each year of service of
the highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal, to begin n