Public Act 90-0448 of the 90th General Assembly
Public Act 90-0448
SB665 Enrolled LRB9000602EGfg
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 State Salary and Annuity Withholding Act
is amended by changing Sections 2, 4, 8, and 9 as follows:
(5 ILCS 365/2) (from Ch. 127, par. 352)
Sec. 2. Definitions. As used in this Act, unless the
context otherwise requires:
"Office" means the State Comptroller, the Board of
Trustees of the State Universities Retirement System, or the
Board of Trustees of any of the following institutions: the
University of Illinois, the Board of Trustees of Southern
Illinois University, Chicago State University, Eastern
Illinois University, Governors State University, Illinois
State University, Northeastern Illinois University, Northern
Illinois University, and Western Illinois University the
Board of Governors of State Colleges and Universities and the
universities and colleges under its jurisdiction and the
Board of Regents and the universities under its jurisdiction.
"Department" means any department, board, commission,
institution, officer, court, or any agency of the State
government, other than the University of Illinois, Southern
Illinois University, Chicago State University, Eastern
Illinois University, Governors State University, Illinois
State University, Northeastern Illinois University, Northern
Illinois University, and Western Illinois University,
receiving State appropriations and having the power to
certify payrolls to the Comptroller authorizing payments of
salary or wages from such appropriations from any State fund
or from trust funds held by the State Treasurer; and the
Board of Trustees of the General Assembly Retirement System,
the Board of Trustees of the State Employees' Retirement
System of Illinois, the Board of Trustees of the Teachers'
Retirement System of the State of Illinois, and the Board of
Trustees of the Judges Retirement System of Illinois created
respectively by Articles 2, 14, 16, and 18 of the "Illinois
Pension Code.", approved March 18, 1963, as heretofore
amended;
"Employee" means any regular officer or employee who
receives salary or wages for personal service rendered to the
State of Illinois and, for the purpose of deduction for the
purchase of United States Savings Bonds, includes any State
contractual employee.;
"Annuitant" means a person receiving a service retirement
annuity allowance or ordinary or accidental disability
benefits under Article 2, Article 14, 15, 16, or Article 18
of the "Illinois Pension Code.", approved March 18, 1963, as
heretofore and hereafter amended;
"Annuity" means the service retirement annuity allowance
or accidental disability benefits received by an annuitant.
(Source: P.A. 89-4, eff. 1-1-96; revised 2-7-97.)
(5 ILCS 365/4) (from Ch. 127, par. 354)
Sec. 4. Authorization of withholding. An employee or
annuitant may authorize the withholding of a portion of his
salary, wages, or annuity for any one or more of the
following purposes:
(1) for purchase of United States Savings Bonds;
(2) for payment of premiums on life or accident and
health insurance as defined in Section 4 of the "Illinois
Insurance Code", approved June 29, 1937, as amended, and for
payment of premiums on policies of automobile insurance as
defined in Section 143.13 of the "Illinois Insurance Code",
as amended, and the personal multiperil coverages commonly
known as homeowner's insurance. However, no portion of
salaries, wages or annuities may be withheld to pay premiums
on automobile, homeowner's, life or accident and health
insurance policies issued by any one insurance company or
insurance service company unless a minimum of 100 employees
or annuitants insured by that company authorize the
withholding by an Office within 6 months after such
withholding begins. If such minimum is not satisfied the
Office may discontinue withholding for such company. For any
insurance company or insurance service company which has not
previously had withholding, the Office may allow withholding
for premiums, where less than 100 policies have been written,
to cover a probationary period. An insurance company which
has discontinued withholding may reinstate it upon
presentation of facts indicating new management or
re-organization satisfactory to the Office;
(3) for payment to any labor organization designated by
the employee;
(4) for payment of dues to any association the
membership of which consists of State employees and former
State employees;
(5) for deposit in any credit union, in which State
employees are within the field of membership as a result of
their employment;
(6) for payment to or for the benefit of an institution
of higher education by an employee of that institution;
(7) for payment of parking fees at the underground
facility located south of the William G. Stratton State
Office Building in Springfield, the parking ramp located at
401 South College Street, west of the William G. Stratton
State Office Building in Springfield, or at the parking
facilities located on the Urbana-Champaign campus of the
University of Illinois;.
(8) for voluntary payment to the State of Illinois of
amounts then due and payable to the State;.
(9) for investment purchases made as a participant in
College Savings Programs established pursuant to Section
30-15.8a of the School Code;.
(10) for voluntary payment to the Illinois Department of
Revenue of amounts due or to become due under the Illinois
Income Tax Act;
(11) for payment of optional contributions to a
retirement system subject to the provisions of the Illinois
Pension Code.
(Source: P.A. 88-161.)
(5 ILCS 365/8) (from Ch. 127, par. 358)
Sec. 8. Payment of certain amounts withheld.
(a) If a withholding authorization is for the purpose of
payment of insurance premiums or for payment to a labor
union, each Office shall make payments, as soon as payroll
warrants are prepared and verified, on behalf of the employee
or annuitant to the payee named in the authorization the
amount specified in the authorization. Such payments shall
be made by warrants prepared at the time the payroll is
processed.
(b) If a withholding authorization is for the purpose of
purchasing United States Savings Bonds, each Office, whenever
a sufficient sum has accumulated in the employee's account to
purchase a bond of the denomination directed by the employee
in his authorization, shall purchase such a United States
Savings Bond in the name designated by the employee and
deliver it to the employee.
(c) If a withholding authorization is for the purpose of
payment of parking fees pursuant to paragraph 7 of Section 4,
the State Comptroller shall deposit 80% of the amount
withheld in the Capital Development Bond Retirement and
Interest Fund in the State Treasury and 20% of the amount
withheld in the State Parking Facility Maintenance Fund in
the State Treasury.
(d) If a withholding authorization is for the purpose of
payment of amounts due or to become due under the Illinois
Income Tax Act, the Office shall pay the amounts withheld
without delay directly to the Department of Revenue or to a
depositary designated by the Department of Revenue.
(Source: P.A. 83-619.)
(5 ILCS 365/9) (from Ch. 127, par. 359)
Sec. 9. Any authorization to withhold from the salary,
wages or annuity of an employee or annuitant shall terminate
and such withholding shall cease upon the happening of any of
the following events:
(1) termination of employment or termination of payment
of an annuity, as the case may be;
(2) written notice by the employee or annuitant of
cancellation of such former authorization, except that an
authorization to withhold for the payment of optional
contributions to a retirement system through an employer
pickup is irrevocable;
(3) expiration of the time during which such withholding
was authorized;
(4) when the total amount authorized to be withheld has
been so withheld.
Upon termination of authorization to purchase United
States Savings Bonds, any amount withheld from the salary or
wages of an employee for such purpose and which has not been
so used shall be immediately remitted by each Office to the
person from whose salary or wages such amount was withheld.
(Source: Laws 1965, p. 1244.)
Section 10. The State Employees Group Insurance Act of
1971 is amended by changing Sections 3 and 6.6 as follows:
(5 ILCS 375/3) (from Ch. 127, par. 523)
(Text of Section before amendment by P.A. 89-507)
Sec. 3. Definitions. Unless the context otherwise
requires, the following words and phrases as used in this Act
shall have the following meanings. The Department may define
these and other words and phrases separately for the purpose
of implementing specific programs providing benefits under
this Act.
(a) "Administrative service organization" means any
person, firm or corporation experienced in the handling of
claims which is fully qualified, financially sound and
capable of meeting the service requirements of a contract of
administration executed with the Department.
(b) "Annuitant" means (1) an employee who retires, or
has retired, on or after January 1, 1966 on an immediate
annuity under the provisions of Articles 2, 14, 15 (including
an employee who has retired and is receiving a retirement
annuity under the an optional retirement program established
under Section 15-158.2 and who would also be eligible for a
retirement annuity had that person been a participant in the
State University Retirement System), paragraphs (b) or (c) of
Section 16-106, or Article 18 of the Illinois Pension Code;
(2) any person who was receiving group insurance coverage
under this Act as of March 31, 1978 by reason of his status
as an annuitant, even though the annuity in relation to which
such coverage was provided is a proportional annuity based on
less than the minimum period of service required for a
retirement annuity in the system involved; (3) any person not
otherwise covered by this Act who has retired as a
participating member under Article 2 of the Illinois Pension
Code but is ineligible for the retirement annuity under
Section 2-119 of the Illinois Pension Code; (4) the spouse of
any person who is receiving a retirement annuity under
Article 18 of the Illinois Pension Code and who is covered
under a group health insurance program sponsored by a
governmental employer other than the State of Illinois and
who has irrevocably elected to waive his or her coverage
under this Act and to have his or her spouse considered as
the "annuitant" under this Act and not as a "dependent"; or
(5) an employee who retires, or has retired, from a qualified
position, as determined according to rules promulgated by the
Director, under a qualified local government or a qualified
rehabilitation facility or a qualified domestic violence
shelter or service. (For definition of "retired employee",
see (p) post).
(c) "Carrier" means (1) an insurance company, a
corporation organized under the Limited Health Service
Organization Act or the Voluntary Health Services Plan Act, a
partnership, or other nongovernmental organization, which is
authorized to do group life or group health insurance
business in Illinois, or (2) the State of Illinois as a
self-insurer.
(d) "Compensation" means salary or wages payable on a
regular payroll by the State Treasurer on a warrant of the
State Comptroller out of any State, trust or federal fund, or
by the Governor of the State through a disbursing officer of
the State out of a trust or out of federal funds, or by any
Department out of State, trust, federal or other funds held
by the State Treasurer or the Department, to any person for
personal services currently performed, and ordinary or
accidental disability benefits under Articles 2, 14, 15
(including ordinary or accidental disability benefits under
the an optional retirement program established under Section
15-158.2), paragraphs (b) or (c) of Section 16-106, or
Article 18 of the Illinois Pension Code, for disability
incurred after January 1, 1966, or benefits payable under the
Workers' Compensation or Occupational Diseases Act or
benefits payable under a sick pay plan established in
accordance with Section 36 of the State Finance Act.
"Compensation" also means salary or wages paid to an employee
of any qualified local government or qualified rehabilitation
facility or a qualified domestic violence shelter or service.
(e) "Commission" means the State Employees Group
Insurance Advisory Commission authorized by this Act.
Commencing July 1, 1984, "Commission" as used in this Act
means the Illinois Economic and Fiscal Commission as
established by the Legislative Commission Reorganization Act
of 1984.
(f) "Contributory", when referred to as contributory
coverage, shall mean optional coverages or benefits elected
by the member toward the cost of which such member makes
contribution, or which are funded in whole or in part through
the acceptance of a reduction in earnings or the foregoing of
an increase in earnings by an employee, as distinguished from
noncontributory coverage or benefits which are paid entirely
by the State of Illinois without reduction of the member's
salary.
(g) "Department" means any department, institution,
board, commission, officer, court or any agency of the State
government receiving appropriations and having power to
certify payrolls to the Comptroller authorizing payments of
salary and wages against such appropriations as are made by
the General Assembly from any State fund, or against trust
funds held by the State Treasurer and includes boards of
trustees of the retirement systems created by Articles 2, 14,
15, 16 and 18 of the Illinois Pension Code. "Department"
also includes the Illinois Comprehensive Health Insurance
Board and the Illinois Rural Bond Bank.
(h) "Dependent", when the term is used in the context of
the health and life plan, means a member's spouse and any
unmarried child (1) from birth to age 19 including an adopted
child, a child who lives with the member from the time of the
filing of a petition for adoption until entry of an order of
adoption, a stepchild or recognized child who lives with the
member in a parent-child relationship, or a child who lives
with the member if such member is a court appointed guardian
of the child, or (2) age 19 to 23 enrolled as a full-time
student in any accredited school, financially dependent upon
the member, and eligible as a dependent for Illinois State
income tax purposes, or (3) age 19 or over who is mentally or
physically handicapped as defined in the Illinois Insurance
Code. For the health plan only, the term "dependent" also
includes any person enrolled prior to the effective date of
this Section who is dependent upon the member to the extent
that the member may claim such person as a dependent for
Illinois State income tax deduction purposes; no other such
person may be enrolled.
(i) "Director" means the Director of the Illinois
Department of Central Management Services.
(j) "Eligibility period" means the period of time a
member has to elect enrollment in programs or to select
benefits without regard to age, sex or health.
(k) "Employee" means and includes each officer or
employee in the service of a department who (1) receives his
compensation for service rendered to the department on a
warrant issued pursuant to a payroll certified by a
department or on a warrant or check issued and drawn by a
department upon a trust, federal or other fund or on a
warrant issued pursuant to a payroll certified by an elected
or duly appointed officer of the State or who receives
payment of the performance of personal services on a warrant
issued pursuant to a payroll certified by a Department and
drawn by the Comptroller upon the State Treasurer against
appropriations made by the General Assembly from any fund or
against trust funds held by the State Treasurer, and (2) is
employed full-time or part-time in a position normally
requiring actual performance of duty during not less than 1/2
of a normal work period, as established by the Director in
cooperation with each department, except that persons elected
by popular vote will be considered employees during the
entire term for which they are elected regardless of hours
devoted to the service of the State, and (3) except that
"employee" does not include any person who is not eligible by
reason of such person's employment to participate in one of
the State retirement systems under Articles 2, 14, 15 (either
the regular Article 15 system or the an optional retirement
program established under Section 15-158.2) or 18, or under
paragraph (b) or (c) of Section 16-106, of the Illinois
Pension Code, but such term does include persons who are
employed during the 6 month qualifying period under Article
14 of the Illinois Pension Code. Such term also includes any
person who (1) after January 1, 1966, is receiving ordinary
or accidental disability benefits under Articles 2, 14, 15
(including ordinary or accidental disability benefits under
the an optional retirement program established under Section
15-158.2), paragraphs (b) or (c) of Section 16-106, or
Article 18 of the Illinois Pension Code, for disability
incurred after January 1, 1966, (2) receives total permanent
or total temporary disability under the Workers' Compensation
Act or Occupational Disease Act as a result of injuries
sustained or illness contracted in the course of employment
with the State of Illinois, or (3) is not otherwise covered
under this Act and has retired as a participating member
under Article 2 of the Illinois Pension Code but is
ineligible for the retirement annuity under Section 2-119 of
the Illinois Pension Code. However, a person who satisfies
the criteria of the foregoing definition of "employee" except
that such person is made ineligible to participate in the
State Universities Retirement System by clause (4) of the
first paragraph of Section 15-107 of the Illinois Pension
Code is also an "employee" for the purposes of this Act.
"Employee" also includes any person receiving or eligible for
benefits under a sick pay plan established in accordance with
Section 36 of the State Finance Act. "Employee" also includes
each officer or employee in the service of a qualified local
government, including persons appointed as trustees of
sanitary districts regardless of hours devoted to the service
of the sanitary district, and each employee in the service of
a qualified rehabilitation facility and each full-time
employee in the service of a qualified domestic violence
shelter or service, as determined according to rules
promulgated by the Director.
(l) "Member" means an employee, annuitant, retired
employee or survivor.
(m) "Optional coverages or benefits" means those
coverages or benefits available to the member on his or her
voluntary election, and at his or her own expense.
(n) "Program" means the group life insurance, health
benefits and other employee benefits designed and contracted
for by the Director under this Act.
(o) "Health plan" means a self-insured health insurance
program offered by the State of Illinois for the purposes of
benefiting employees by means of providing, among others,
wellness programs, utilization reviews, second opinions and
medical fee reviews, as well as for paying for hospital and
medical care up to the maximum coverage provided by the plan,
to its members and their dependents.
(p) "Retired employee" means any person who would be an
annuitant as that term is defined herein but for the fact
that such person retired prior to January 1, 1966. Such term
also includes any person formerly employed by the University
of Illinois in the Cooperative Extension Service who would be
an annuitant but for the fact that such person was made
ineligible to participate in the State Universities
Retirement System by clause (4) of the first paragraph of
Section 15-107 of the Illinois Pension Code.
(q) "Survivor" means a person receiving an annuity as a
survivor of an employee or of an annuitant. "Survivor" also
includes: (1) the surviving dependent of a person who
satisfies the definition of "employee" except that such
person is made ineligible to participate in the State
Universities Retirement System by clause (4) of the first
paragraph of Section 15-107 of the Illinois Pension Code; and
(2) the surviving dependent of any person formerly employed
by the University of Illinois in the Cooperative Extension
Service who would be an annuitant except for the fact that
such person was made ineligible to participate in the State
Universities Retirement System by clause (4) of the first
paragraph of Section 15-107 of the Illinois Pension Code.
(r) "Medical services" means the services provided
within the scope of their licenses by practitioners in all
categories licensed under the Medical Practice Act of 1987.
(s) "Unit of local government" means any county,
municipality, township, school district, special district or
other unit, designated as a unit of local government by law,
which exercises limited governmental powers or powers in
respect to limited governmental subjects, any not-for-profit
association with a membership that primarily includes
townships and township officials, that has duties that
include provision of research service, dissemination of
information, and other acts for the purpose of improving
township government, and that is funded wholly or partly in
accordance with Section 85-15 of the Township Code; any
not-for-profit corporation or association, with a membership
consisting primarily of municipalities, that operates its own
utility system, and provides research, training,
dissemination of information, or other acts to promote
cooperation between and among municipalities that provide
utility services and for the advancement of the goals and
purposes of its membership; and the Illinois Association of
Park Districts. "Qualified local government" means a unit of
local government approved by the Director and participating
in a program created under subsection (i) of Section 10 of
this Act.
(t) "Qualified rehabilitation facility" means any
not-for-profit organization that is accredited by the
Commission on Accreditation of Rehabilitation Facilities or
certified by the Department of Mental Health and
Developmental Disabilities to provide services to persons
with disabilities and which receives funds from the State of
Illinois for providing those services, approved by the
Director and participating in a program created under
subsection (j) of Section 10 of this Act.
(u) "Qualified domestic violence shelter or service"
means any Illinois domestic violence shelter or service and
its administrative offices funded by the Illinois Department
of Public Aid, approved by the Director and participating in
a program created under subsection (k) of Section 10.
(v) "TRS benefit recipient" means a person who:
(1) is not a "member" as defined in this Section;
and
(2) is receiving a monthly benefit or retirement
annuity under Article 16 of the Illinois Pension Code;
and
(3) either (i) has at least 8 years of creditable
service under Article 16 of the Illinois Pension Code, or
(ii) was enrolled in the health insurance program offered
under that Article on January 1, 1996, or (iii) is the
survivor of a benefit recipient who had at least 8 years
of creditable service under Article 16 of the Illinois
Pension Code or was enrolled in the health insurance
program offered under that Article on the effective date
of this amendatory Act of 1995, or (iv) is a recipient or
survivor of a recipient of a disability benefit under
Article 16 of the Illinois Pension Code.
(w) "TRS dependent beneficiary" means a person who:
(1) is not a "member" or "dependent" as defined in
this Section; and
(2) is a TRS benefit recipient's: (A) spouse, (B)
dependent parent who is receiving at least half of his or
her support from the TRS benefit recipient, or (C)
unmarried natural or adopted child who is (i) under age
19, or (ii) enrolled as a full-time student in an
accredited school, financially dependent upon the TRS
benefit recipient, eligible as a dependent for Illinois
State income tax purposes, and either is under age 23 24
or was, on January 1, 1996, participating as a dependent
beneficiary in the health insurance program offered under
Article 16 of the Illinois Pension Code, or (iii) age 19
or over who is mentally or physically handicapped as
defined in the Illinois Insurance Code.
(x) "Military leave with pay and benefits" refers to
individuals in basic training for reserves, special/advanced
training, annual training, emergency call up, or activation
by the President of the United States with approved pay and
benefits.
(y) "Military leave without pay and benefits" refers to
individuals who enlist for active duty in a regular component
of the U.S. Armed Forces or other duty not specified or
authorized under military leave with pay and benefits.
(Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-628,
eff. 8-9-96; revised 8-23-96.)
(Text of Section after amendment by P.A. 89-507)
Sec. 3. Definitions. Unless the context otherwise
requires, the following words and phrases as used in this Act
shall have the following meanings. The Department may define
these and other words and phrases separately for the purpose
of implementing specific programs providing benefits under
this Act.
(a) "Administrative service organization" means any
person, firm or corporation experienced in the handling of
claims which is fully qualified, financially sound and
capable of meeting the service requirements of a contract of
administration executed with the Department.
(b) "Annuitant" means (1) an employee who retires, or
has retired, on or after January 1, 1966 on an immediate
annuity under the provisions of Articles 2, 14, 15 (including
an employee who has retired and is receiving a retirement
annuity under the an optional retirement program established
under Section 15-158.2 and who would also be eligible for a
retirement annuity had that person been a participant in the
State University Retirement System), paragraphs (b) or (c) of
Section 16-106, or Article 18 of the Illinois Pension Code;
(2) any person who was receiving group insurance coverage
under this Act as of March 31, 1978 by reason of his status
as an annuitant, even though the annuity in relation to which
such coverage was provided is a proportional annuity based on
less than the minimum period of service required for a
retirement annuity in the system involved; (3) any person not
otherwise covered by this Act who has retired as a
participating member under Article 2 of the Illinois Pension
Code but is ineligible for the retirement annuity under
Section 2-119 of the Illinois Pension Code; (4) the spouse of
any person who is receiving a retirement annuity under
Article 18 of the Illinois Pension Code and who is covered
under a group health insurance program sponsored by a
governmental employer other than the State of Illinois and
who has irrevocably elected to waive his or her coverage
under this Act and to have his or her spouse considered as
the "annuitant" under this Act and not as a "dependent"; or
(5) an employee who retires, or has retired, from a qualified
position, as determined according to rules promulgated by the
Director, under a qualified local government or a qualified
rehabilitation facility or a qualified domestic violence
shelter or service. (For definition of "retired employee",
see (p) post).
(c) "Carrier" means (1) an insurance company, a
corporation organized under the Limited Health Service
Organization Act or the Voluntary Health Services Plan Act, a
partnership, or other nongovernmental organization, which is
authorized to do group life or group health insurance
business in Illinois, or (2) the State of Illinois as a
self-insurer.
(d) "Compensation" means salary or wages payable on a
regular payroll by the State Treasurer on a warrant of the
State Comptroller out of any State, trust or federal fund, or
by the Governor of the State through a disbursing officer of
the State out of a trust or out of federal funds, or by any
Department out of State, trust, federal or other funds held
by the State Treasurer or the Department, to any person for
personal services currently performed, and ordinary or
accidental disability benefits under Articles 2, 14, 15
(including ordinary or accidental disability benefits under
the an optional retirement program established under Section
15-158.2), paragraphs (b) or (c) of Section 16-106, or
Article 18 of the Illinois Pension Code, for disability
incurred after January 1, 1966, or benefits payable under the
Workers' Compensation or Occupational Diseases Act or
benefits payable under a sick pay plan established in
accordance with Section 36 of the State Finance Act.
"Compensation" also means salary or wages paid to an employee
of any qualified local government or qualified rehabilitation
facility or a qualified domestic violence shelter or service.
(e) "Commission" means the State Employees Group
Insurance Advisory Commission authorized by this Act.
Commencing July 1, 1984, "Commission" as used in this Act
means the Illinois Economic and Fiscal Commission as
established by the Legislative Commission Reorganization Act
of 1984.
(f) "Contributory", when referred to as contributory
coverage, shall mean optional coverages or benefits elected
by the member toward the cost of which such member makes
contribution, or which are funded in whole or in part through
the acceptance of a reduction in earnings or the foregoing of
an increase in earnings by an employee, as distinguished from
noncontributory coverage or benefits which are paid entirely
by the State of Illinois without reduction of the member's
salary.
(g) "Department" means any department, institution,
board, commission, officer, court or any agency of the State
government receiving appropriations and having power to
certify payrolls to the Comptroller authorizing payments of
salary and wages against such appropriations as are made by
the General Assembly from any State fund, or against trust
funds held by the State Treasurer and includes boards of
trustees of the retirement systems created by Articles 2, 14,
15, 16 and 18 of the Illinois Pension Code. "Department"
also includes the Illinois Comprehensive Health Insurance
Board and the Illinois Rural Bond Bank.
(h) "Dependent", when the term is used in the context of
the health and life plan, means a member's spouse and any
unmarried child (1) from birth to age 19 including an adopted
child, a child who lives with the member from the time of the
filing of a petition for adoption until entry of an order of
adoption, a stepchild or recognized child who lives with the
member in a parent-child relationship, or a child who lives
with the member if such member is a court appointed guardian
of the child, or (2) age 19 to 23 enrolled as a full-time
student in any accredited school, financially dependent upon
the member, and eligible as a dependent for Illinois State
income tax purposes, or (3) age 19 or over who is mentally or
physically handicapped as defined in the Illinois Insurance
Code. For the health plan only, the term "dependent" also
includes any person enrolled prior to the effective date of
this Section who is dependent upon the member to the extent
that the member may claim such person as a dependent for
Illinois State income tax deduction purposes; no other such
person may be enrolled.
(i) "Director" means the Director of the Illinois
Department of Central Management Services.
(j) "Eligibility period" means the period of time a
member has to elect enrollment in programs or to select
benefits without regard to age, sex or health.
(k) "Employee" means and includes each officer or
employee in the service of a department who (1) receives his
compensation for service rendered to the department on a
warrant issued pursuant to a payroll certified by a
department or on a warrant or check issued and drawn by a
department upon a trust, federal or other fund or on a
warrant issued pursuant to a payroll certified by an elected
or duly appointed officer of the State or who receives
payment of the performance of personal services on a warrant
issued pursuant to a payroll certified by a Department and
drawn by the Comptroller upon the State Treasurer against
appropriations made by the General Assembly from any fund or
against trust funds held by the State Treasurer, and (2) is
employed full-time or part-time in a position normally
requiring actual performance of duty during not less than 1/2
of a normal work period, as established by the Director in
cooperation with each department, except that persons elected
by popular vote will be considered employees during the
entire term for which they are elected regardless of hours
devoted to the service of the State, and (3) except that
"employee" does not include any person who is not eligible by
reason of such person's employment to participate in one of
the State retirement systems under Articles 2, 14, 15 (either
the regular Article 15 system or the an optional retirement
program established under Section 15-158.2) or 18, or under
paragraph (b) or (c) of Section 16-106, of the Illinois
Pension Code, but such term does include persons who are
employed during the 6 month qualifying period under Article
14 of the Illinois Pension Code. Such term also includes any
person who (1) after January 1, 1966, is receiving ordinary
or accidental disability benefits under Articles 2, 14, 15
(including ordinary or accidental disability benefits under
the an optional retirement program established under Section
15-158.2), paragraphs (b) or (c) of Section 16-106, or
Article 18 of the Illinois Pension Code, for disability
incurred after January 1, 1966, (2) receives total permanent
or total temporary disability under the Workers' Compensation
Act or Occupational Disease Act as a result of injuries
sustained or illness contracted in the course of employment
with the State of Illinois, or (3) is not otherwise covered
under this Act and has retired as a participating member
under Article 2 of the Illinois Pension Code but is
ineligible for the retirement annuity under Section 2-119 of
the Illinois Pension Code. However, a person who satisfies
the criteria of the foregoing definition of "employee" except
that such person is made ineligible to participate in the
State Universities Retirement System by clause (4) of the
first paragraph of Section 15-107 of the Illinois Pension
Code is also an "employee" for the purposes of this Act.
"Employee" also includes any person receiving or eligible for
benefits under a sick pay plan established in accordance with
Section 36 of the State Finance Act. "Employee" also includes
each officer or employee in the service of a qualified local
government, including persons appointed as trustees of
sanitary districts regardless of hours devoted to the service
of the sanitary district, and each employee in the service of
a qualified rehabilitation facility and each full-time
employee in the service of a qualified domestic violence
shelter or service, as determined according to rules
promulgated by the Director.
(l) "Member" means an employee, annuitant, retired
employee or survivor.
(m) "Optional coverages or benefits" means those
coverages or benefits available to the member on his or her
voluntary election, and at his or her own expense.
(n) "Program" means the group life insurance, health
benefits and other employee benefits designed and contracted
for by the Director under this Act.
(o) "Health plan" means a self-insured health insurance
program offered by the State of Illinois for the purposes of
benefiting employees by means of providing, among others,
wellness programs, utilization reviews, second opinions and
medical fee reviews, as well as for paying for hospital and
medical care up to the maximum coverage provided by the plan,
to its members and their dependents.
(p) "Retired employee" means any person who would be an
annuitant as that term is defined herein but for the fact
that such person retired prior to January 1, 1966. Such term
also includes any person formerly employed by the University
of Illinois in the Cooperative Extension Service who would be
an annuitant but for the fact that such person was made
ineligible to participate in the State Universities
Retirement System by clause (4) of the first paragraph of
Section 15-107 of the Illinois Pension Code.
(q) "Survivor" means a person receiving an annuity as a
survivor of an employee or of an annuitant. "Survivor" also
includes: (1) the surviving dependent of a person who
satisfies the definition of "employee" except that such
person is made ineligible to participate in the State
Universities Retirement System by clause (4) of the first
paragraph of Section 15-107 of the Illinois Pension Code; and
(2) the surviving dependent of any person formerly employed
by the University of Illinois in the Cooperative Extension
Service who would be an annuitant except for the fact that
such person was made ineligible to participate in the State
Universities Retirement System by clause (4) of the first
paragraph of Section 15-107 of the Illinois Pension Code.
(r) "Medical services" means the services provided
within the scope of their licenses by practitioners in all
categories licensed under the Medical Practice Act of 1987.
(s) "Unit of local government" means any county,
municipality, township, school district, special district or
other unit, designated as a unit of local government by law,
which exercises limited governmental powers or powers in
respect to limited governmental subjects, any not-for-profit
association with a membership that primarily includes
townships and township officials, that has duties that
include provision of research service, dissemination of
information, and other acts for the purpose of improving
township government, and that is funded wholly or partly in
accordance with Section 85-15 of the Township Code; any
not-for-profit corporation or association, with a membership
consisting primarily of municipalities, that operates its own
utility system, and provides research, training,
dissemination of information, or other acts to promote
cooperation between and among municipalities that provide
utility services and for the advancement of the goals and
purposes of its membership; and the Illinois Association of
Park Districts. "Qualified local government" means a unit of
local government approved by the Director and participating
in a program created under subsection (i) of Section 10 of
this Act.
(t) "Qualified rehabilitation facility" means any
not-for-profit organization that is accredited by the
Commission on Accreditation of Rehabilitation Facilities or
certified by the Department of Human Services (as successor
to the Department of Mental Health and Developmental
Disabilities) to provide services to persons with
disabilities and which receives funds from the State of
Illinois for providing those services, approved by the
Director and participating in a program created under
subsection (j) of Section 10 of this Act.
(u) "Qualified domestic violence shelter or service"
means any Illinois domestic violence shelter or service and
its administrative offices funded by the Department of Human
Services (as successor to the Illinois Department of Public
Aid), approved by the Director and participating in a program
created under subsection (k) of Section 10.
(v) "TRS benefit recipient" means a person who:
(1) is not a "member" as defined in this Section;
and
(2) is receiving a monthly benefit or retirement
annuity under Article 16 of the Illinois Pension Code;
and
(3) either (i) has at least 8 years of creditable
service under Article 16 of the Illinois Pension Code, or
(ii) was enrolled in the health insurance program offered
under that Article on January 1, 1996, or (iii) is the
survivor of a benefit recipient who had at least 8 years
of creditable service under Article 16 of the Illinois
Pension Code or was enrolled in the health insurance
program offered under that Article on the effective date
of this amendatory Act of 1995, or (iv) is a recipient or
survivor of a recipient of a disability benefit under
Article 16 of the Illinois Pension Code.
(w) "TRS dependent beneficiary" means a person who:
(1) is not a "member" or "dependent" as defined in
this Section; and
(2) is a TRS benefit recipient's: (A) spouse, (B)
dependent parent who is receiving at least half of his or
her support from the TRS benefit recipient, or (C)
unmarried natural or adopted child who is (i) under age
19, or (ii) enrolled as a full-time student in an
accredited school, financially dependent upon the TRS
benefit recipient, eligible as a dependent for Illinois
State income tax purposes, and either is under age 23 24
or was, on January 1, 1996, participating as a dependent
beneficiary in the health insurance program offered under
Article 16 of the Illinois Pension Code, or (iii) age 19
or over who is mentally or physically handicapped as
defined in the Illinois Insurance Code.
(x) "Military leave with pay and benefits" refers to
individuals in basic training for reserves, special/advanced
training, annual training, emergency call up, or activation
by the President of the United States with approved pay and
benefits.
(y) "Military leave without pay and benefits" refers to
individuals who enlist for active duty in a regular component
of the U.S. Armed Forces or other duty not specified or
authorized under military leave with pay and benefits.
(Source: P.A. 88-670, eff. 12-2-94; 89-21, eff. 6-21-95;
89-25, eff. 6-21-95; 89-76, eff. 7-1-95; 89-324, eff.
8-13-95; 89-430, eff. 12-15-95; 89-502, eff. 7-1-96; 89-507,
eff. 7-1-97; 89-628, eff. 8-9-96; revised 8-23-96.)
(5 ILCS 375/6.6)
Sec. 6.6. Contributions to the Teacher Health Insurance
Security Fund.
(a) Beginning July 1, 1995, all active contributors of
the Teachers' Retirement System (established under Article 16
of the Illinois Pension Code) who are not employees of a
department as defined in Section 3 of this Act shall make
contributions toward the cost of annuitant and survivor
health benefits at the rate of 0.5% of salary.
These contributions shall be deducted by the employer and
paid to the System as service agent for the Department of
Central Management Services. The System may use the same
processes for collecting the contributions required by this
subsection that it uses to collect contributions received
from school districts and other covered employers under
Sections 16-154 and 16-155 of the Illinois Pension Code. An
employer may agree to pick up or pay the contributions
required under this subsection on behalf of the teacher; such
contributions shall be deemed to have been paid by the
teacher.
A person required to make contributions under this
subsection (a) who purchases optional service credit under
Article 16 of the Illinois Pension Code for a period services
actually performed after June 30, 1995 must also make a
contribution under this subsection for that optional credit,
at the applicable rate of 0.5% of the salary used in
computing the optional service credit, based on the required
employee contributions for that optional service credit, plus
the interest on this those employee contribution
contributions. This contribution shall be collected by the
System as service agent for the Department of Central
Management Services. at the time of receiving The
contribution required under this subsection for the optional
service credit must be paid in full before any annuity based
on that credit begins.
(b) The Teachers' Retirement System shall promptly
deposit all moneys collected under subsection (a) of this
Section into the Teacher Health Insurance Security Fund
created in Section 6.5 of this Act. The moneys collected
under this Section shall be used only for the purposes
authorized in Section 6.5 of this Act and shall not be
considered to be assets of the Teachers' Retirement System.
Contributions made under this Section are not transferable to
other pension funds or retirement systems and are not
refundable upon termination of service.
(c) On or before November 15 of each year, the Board of
Trustees of the Teachers' Retirement System shall certify to
the Governor, the Director of Central Management Services,
and the State Comptroller its estimate of the total amount of
contributions to be paid under subsection (a) of this Section
6.6 for the next fiscal year. The certification shall
include a detailed explanation of the methods and information
that the Board relied upon in preparing its estimate. As
soon as possible after the effective date of this Section,
the Board shall submit its estimate for fiscal year 1996.
(d) Beginning in fiscal year 1996, on the first day of
each month, or as soon thereafter as may be practical, the
State Treasurer and the State Comptroller shall transfer from
the General Revenue Fund to the Teacher Health Insurance
Security Fund 1/12 of the annual amount appropriated for that
fiscal year to the State Comptroller for deposit into the
Teacher Health Insurance Security Fund under Section 1.3 of
the State Pension Funds Continuing Appropriation Act.
(e) Except where otherwise specified in this Section,
the definitions that apply to Article 16 of the Illinois
Pension Code apply to this Section.
(Source: P.A. 89-21, eff. 6-21-95; 89-25, eff. 6-21-95.)
Section 15. The Illinois Income Tax Act is amended by
changing Section 804 as follows:
(35 ILCS 5/804) (from Ch. 120, par. 8-804)
Sec. 804. Failure to Pay Estimated Tax.
(a) In general. In case of any underpayment of estimated
tax by a taxpayer, except as provided in subsection (d) or
(e), the taxpayer shall be liable to a penalty in an amount
determined at the rate prescribed by Section 3-3 of the
Uniform Penalty and Interest Act upon the amount of the
underpayment (determined under subsection (b)) for each
required installment.
(b) Amount of underpayment. For purposes of subsection
(a), the amount of the underpayment shall be the excess of:
(1) the amount of the installment which would be
required to be paid under subsection (c), over
(2) the amount, if any, of the installment paid on
or before the last date prescribed for payment.
(c) Amount of Required Installments.
(1) Amount.
(A) In General. Except as provided in
paragraph (2), the amount of any required
installment shall be 25% of the required annual
payment.
(B) Required Annual Payment. For purposes of
subparagraph (A), the term "required annual payment"
means the lesser of
(i) 90% of the tax shown on the return
for the taxable year, or if no return is filed,
90% of the tax for such year, or
(ii) 100% of the tax shown on the return
of the taxpayer for the preceding taxable year
if a return showing a liability for tax was
filed by the taxpayer for the preceding taxable
year and such preceding year was a taxable year
of 12 months.
(2) Lower Required Installment where Annualized
Income Installment is Less Than Amount Determined Under
Paragraph (1).
(A) In General. In the case of any required
installment if a taxpayer establishes that the
annualized income installment is less than the
amount determined under paragraph (1),
(i) the amount of such required
installment shall be the annualized income
installment, and
(ii) any reduction in a required
installment resulting from the application of
this subparagraph shall be recaptured by
increasing the amount of the next required
installment determined under paragraph (1) by
the amount of such reduction, and by increasing
subsequent required installments to the extent
that the reduction has not previously been
recaptured under this clause.
(B) Determination of Annualized Income
Installment. In the case of any required
installment, the annualized income installment is
the excess, if any, of
(i) an amount equal to the applicable
percentage of the tax for the taxable year
computed by placing on an annualized basis the
net income for months in the taxable year
ending before the due date for the installment,
over
(ii) the aggregate amount of any prior
required installments for the taxable year.
(C) Applicable Percentage.
In the case of the following The applicable
required installments: percentage is:
1st ............................... 22.5%
2nd ............................... 45%
3rd ............................... 67.5%
4th ............................... 90%
(D) Annualized Net Income; Individuals. For
individuals, net income shall be placed on an
annualized basis by:
(i) multiplying by 12, or in the case of
a taxable year of less than 12 months, by the
number of months in the taxable year, the net
income computed without regard to the standard
exemption for the months in the taxable year
ending before the month in which the
installment is required to be paid;
(ii) dividing the resulting amount by the
number of months in the taxable year ending
before the month in which such installment date
falls; and
(iii) deducting from such amount the
standard exemption allowable for the taxable
year, such standard exemption being determined
as of the last date prescribed for payment of
the installment.
(E) Annualized Net Income; Corporations. For
corporations, net income shall be placed on an
annualized basis by multiplying by 12 the taxable
income
(i) for the first 3 months of the taxable
year, in the case of the installment required
to be paid in the 4th month,
(ii) for the first 3 months or for the
first 5 months of the taxable year, in the case
of the installment required to be paid in the
6th month,
(iii) for the first 6 months or for the
first 8 months of the taxable year, in the case
of the installment required to be paid in the
9th month, and
(iv) for the first 9 months or for the
first 11 months of the taxable year, in the
case of the installment required to be paid in
the 12th month of the taxable year,
then dividing the resulting amount by the number of
months in the taxable year (3, 5, 6, 8, 9, or 11 as
the case may be).
(d) Exceptions. Notwithstanding the provisions of the
preceding subsections, the penalty imposed by subsection (a)
shall not be imposed if the taxpayer was not required to file
an Illinois income tax return for the preceding taxable year,
or if the taxpayer has underpaid taxes solely because of the
increased rate in effect during the period from July 1, 1989
through December 1989, or, for individuals, if the taxpayer
had no tax liability for the preceding taxable year and such
year was a taxable year of 12 months.
(e) The penalty imposed for underpayment of estimated
tax by subsection (a) of this Section shall not be imposed to
the extent that the Department or his designate determines,
pursuant to Section 3-8 of the Uniform Penalty and Interest
Act that the penalty should not be imposed.
(f) Definition of tax. For purposes of subsections (b)
and (c), the term "tax" means the excess of the tax imposed
under Article 2 of this Act, over the amounts credited
against such tax under Sections 601(b) (3) and (4).
(g) Application of Section in case of tax withheld on
compensation. For purposes of applying this Section in the
case of an individual, tax withheld under Article 7 for the
taxable year shall be deemed a payment of estimated tax, and
an equal part of such amount shall be deemed paid on each
installment date for such taxable year, unless the taxpayer
establishes the dates on which all amounts were actually
withheld, in which case the amounts so withheld shall be
deemed payments of estimated tax on the dates on which such
amounts were actually withheld.
(g-5) Amounts withheld under the State Salary and
Annuity Withholding Act. An individual who has amounts
withheld under paragraph (10) of Section 4 of the State
Salary and Annuity Withholding Act may elect to have those
amounts treated as payments of estimated tax made on the
dates on which those amounts are actually withheld.
(i) Short taxable year. The application of this Section
to taxable years of less than 12 months shall be in
accordance with regulations prescribed by the Department.
The changes in this Section made by Public Act 84-127
shall apply to taxable years ending on or after January 1,
1986.
(Source: P.A. 86-678; 86-953; 86-1028; 87-205.)
Section 20. The Illinois Pension Code is amended by
changing Sections 2-123, 2-126.1, 7-109.3, 7-111, 7-113,
7-116, 7-118, 7-132.2, 7-139, 7-145, 7-171, 7-172, 14-103.05,
14-104, 14-108, 14-118, 14-119, 14-120, 14-128, 14-130,
14-133, 14-133.1, 15-107, 15-131, 15-134, 15-136, 15-141,
15-142, 15-145, 15-146, 15-154, 15-157, 15-157.1, 15-158.2,
15-165, 15-185, 16-106, 16-140, 16-143, 16-151, 16-152.1,
16-154, 16-155, 16-158.1, 16-179, 16-185, 16-187, 17-116.1,
18-133.1, 21-103, 21-109, and 21-115 and adding Sections
7-199.3, 15-136.4, 16-169.1, 16-181.3, 17-134.1, and 18-112.6
as follows:
(40 ILCS 5/2-123) (from Ch. 108 1/2, par. 2-123)
Sec. 2-123. Refunds.
(a) A participant who ceases to be a member, other than
an annuitant, shall, upon written request, receive a refund
of his or her total contributions, without interest. The
refund shall include the additional contributions for the
automatic increase in retirement annuity. By accepting the
refund, a participant forfeits all accrued rights and
benefits in the System and loses credit for all service.
However, if he or she again becomes a member, he or she may
resume status as a participant and reestablish any forfeited
service credit by paying to the System the full amount
refunded, together with interest at 4% per annum from the
time the refund is paid to the date the member again becomes
a participant.
A former member of the General Assembly may reestablish
any service credit forfeited by acceptance of a refund by
paying to the System on or before February 1, 1993, the full
amount refunded, together with interest at 4% per annum from
the date of payment of the refund to the date of repayment.
When a member or former member owes money to the System,
interest at the rate of 4% per annum shall accrue and be
payable on such amounts owed beginning on the date of
termination of service as a member until the contributions
due have been paid in full.
(b) A participant who has no eligible survivor upon
becoming an annuitant or who terminates service with less
than 8 years of service is entitled to a refund of the
contributions for a survivor's annuity, without interest. If
such person later marries, a survivor's annuity shall not be
payable upon his or her death, unless the amount of such
refund is repaid to the System, together with interest at the
rate of 4% per year from the date of refund to the date of
repayment.
(c) If at the date of retirement or death of a
participant who served as an officer of the General Assembly,
the total period of such service is less than 4 years, the
additional contributions made by such member on the
additional salary as an officer shall be refunded unless the
participant served as an officer for at least 2 years and has
contributed the amount he or she would have contributed if he
or she had served as an officer for 4 years as provided in
Section 2-126.
(d) Upon the termination of the last survivor's annuity
payable to a survivor of a deceased participant, the excess,
if any, of the total contributions made by the participant
for retirement and survivor's annuity, without interest, over
the total amount of retirement and survivor's annuity
payments received by the participant and the participant's
survivors shall be refunded upon request:
(i) if there was a surviving spouse of the deceased
participant who was eligible for a survivor's annuity, to
the designated beneficiary of that spouse or, if the
designated beneficiary is deceased or there is no
designated beneficiary, to that spouse's estate;
(ii) if there was no eligible surviving spouse of
the deceased participant, to the designated beneficiary
of the deceased participant or, if the designated
beneficiary is deceased or there is no designated
beneficiary, to the deceased participant's estate.
Upon death of the last survivor of a participant and his
or her spouse, a death benefit shall be payable consisting of
the excess, if any, of the contributions made by the
participant for retirement and survivor's annuity, without
interest, over the total amount of retirement and survivor's
annuity payments made by the System.
(e) Upon the death of a participant, if a survivor's
annuity is not payable under this Article, a beneficiary
designated by the participant shall be entitled to a refund
of all contributions made by the participant. If the
participant has not designated a refund beneficiary, the
surviving spouse shall be entitled to the refund of
contributions; if there is no surviving spouse, the
contributions shall be refunded to the participant's
surviving children, if any, and if no children survive, the
refund payment shall be made to the participant's estate.
(Source: P.A. 86-273; 87-1265.)
(40 ILCS 5/2-126.1) (from Ch. 108 1/2, par. 2-126.1)
Sec. 2-126.1. Pickup Pick up of contributions.
(a) The State shall pick up the participant
contributions required under Section 2-126 for all salary
earned after December 31, 1981. The contributions so picked
up shall be treated as employer contributions in determining
tax treatment under the United States Internal Revenue Code.
The State shall pay these participant contributions from the
same source of funds which is used in paying salary to the
participant. The State may pick up these contributions by a
reduction in the cash salary of the participant. If
participant contributions are picked up they shall be treated
for all purposes of this Article 2 in the same manner as
participant contributions that were made prior to the date
that the pick up of contributions began.
(b) Subject to the requirements of federal law, a
participant may elect to have the employer pick up optional
contributions that the participant has elected to pay to the
System, and the contributions so picked up shall be treated
as employer contributions for the purposes of determining
federal tax treatment. The employer shall pick up the
contributions by a reduction in the cash salary of the
participant and shall pay the contributions from the same
fund that is used to pay earnings to the participant. The
election to have optional contributions picked up is
irrevocable and the optional contributions may not thereafter
be prepaid, by direct payment or otherwise.
(Source: P.A. 83-1440.)
(40 ILCS 5/7-109.3) (from Ch. 108 1/2, par. 7-109.3)
Sec. 7-109.3. "Sheriff's Law Enforcement Employees".
(a) "Sheriff's law enforcement employee" means:
(1) A county sheriff and all deputies, other than
special deputies, employed on a full time basis in the
office of the sheriff.
(2) A person who has elected to participate in this
Fund under Section 3-109.1 of this Code, and who is
employed by a participating municipality to perform
police duties.
(3) A law enforcement officer employed on a full
time basis by a Forest Preserve District, provided that
such officer shall be deemed a "sheriff's law enforcement
employee" for the purposes of this Article, and service
in that capacity shall be deemed to be service as a
sheriff's law enforcement employee, only if the board of
commissioners of the District have so elected by adoption
of an affirmative resolution. Such election, once made,
may not be rescinded.
(4) A person not eligible to participate in a fund
established under Article 3 of this Code who is employed
on a full-time basis by a participating municipality or
participating instrumentality to perform police duties at
an airport, but only if the governing authority of the
employer has approved sheriff's law enforcement employee
status for its airport police employees by adoption of an
affirmative resolution. Such approval, once given, may
not be rescinded.
(b) An employee who is a sheriff's law enforcement
employee and prior to the time for which he is granted
military leave or authorized leave of absence shall receive
service credit in that capacity. Sheriff's law enforcement
employees shall not be entitled to out of State service
credit under Section 7-139.
(Source: P.A. 86-273; 87-850.)
(40 ILCS 5/7-111) (from Ch. 108 1/2, par. 7-111)
Sec. 7-111. "Prior Service": The period beginning on
the day a participating employee first became an employee of
a municipality, or of an instrumentality thereof, or of a
municipality or instrumentality that was superseded by the
employing participating municipality, or of a participating
instrumentality, and ending on the effective date of
participation of the municipality or participating
instrumentality, or upon the latest termination of service
prior to such effective date, but excluding (a) the
intervening periods during which the employee was separated
from the service of the municipality and all
instrumentalities thereof, or of the participating
instrumentality, or (b) periods during which the employee was
employed in a position normally requiring less than 600 hours
of service during a year, and or (c) periods during which the
employee served by persons beginning participating employment
in a position normally requiring performance of duty less
than 1000 hours per year, if the with a participating
municipality or participating instrumentality adopted, which
prior to its effective the date of participation, it is
included and subject to this Article adopts a resolution or
ordinance excluding persons in such positions from
participation.
(Source: P.A. 82-459.)
(40 ILCS 5/7-113) (from Ch. 108 1/2, par. 7-113)
Sec. 7-113. "Creditable Service": All periods of prior
service or current service for which credits are granted
under the provisions of Section 7-139, including all periods
during which a participating employee was an employee of a
municipality or instrumentality which was superseded by the
employing participating municipality.
(Source: Laws 1967, p. 2091.)
(40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
Sec. 7-116. "Final rate of earnings":
(a) For retirement and survivor annuities, the monthly
earnings obtained by dividing the total earnings received by
the employee during the period of either (1) the 48
consecutive months of service within the last 120 months of
service in which his total earnings were the highest, or (2)
the employee's (his total period of service,) by the number
of months of service in such period.
(b) For death benefits, the higher of the rate
determined under paragraph (a) of this Section or total
earnings received in the last 12 months of service divided by
twelve. If the deceased employee has less than 12 months of
service, the monthly final rate shall be the monthly rate of
pay the employee was receiving when he began service.
(c) For disability benefits, the total earnings of a
participating employee in the last 12 calendar months of
service prior to the date he becomes disabled divided by 12.
(d) In computing the final rate of earnings: (1) the
earnings rate for all periods of prior service shall be
considered equal to the average earnings rate for the last 3
calendar years of prior service for which creditable service
is received under Section 7-139 most immediately preceding
the effective date, or, if there is less than 3 years of
creditable prior service, the average for the total prior
service period for which creditable service is received under
Section 7-139; (2) for out of state service and authorized
leave, the earnings rate shall be the rate upon which service
credits are granted; (3) periods of military leave shall not
be considered; (4) the earnings rate for all periods of
disability shall be considered equal to the rate of earnings
upon which the employee's disability benefits are computed
for such periods; (5) the earnings to be considered for each
of the final three months of the final earnings period shall
not exceed 125% of the highest earnings of any other month in
the final earnings period; and (6) the annual amount of final
rate of earnings shall be the monthly amount multiplied by
the number of months of service normally required by the
position in a year.
(Source: P.A. 78-255.)
(40 ILCS 5/7-118) (from Ch. 108 1/2, par. 7-118)
Sec. 7-118. "Beneficiary":
(a) The surviving spouse of an employee or of an
employee annuitant, or if no surviving spouse survives, the
person or persons designated by a participating employee or
employee annuitant, or if no person so designated survives,
or if no designation is on file, the estate of the employee
or employee annuitant. The person or persons designated by a
beneficiary annuitant, or if no person designated survives,
or if no designation is on file, the estate of the
beneficiary annuitant. The estate of a surviving spouse
annuitant where the employee or employee annuitant filed no
designation, or no person designated survives at the death of
a surviving spouse annuitant. Designations of beneficiaries
shall be in writing on forms prescribed by the board and
effective upon filing in the fund offices. The designation
forms shall provide for contingent beneficiaries. Divorce,
dissolution or annulment of marriage revokes the designation
of an employee's former spouse as a beneficiary on a
designation executed before entry of judgment for divorce,
dissolution or annulment of marriage.
(b) Notwithstanding the foregoing, an employee, former
employee who has not yet received a retirement annuity or
separation benefit, or employee annuitant may elect to name
any person, trust or charity to be the primary beneficiary of
any death benefit payable by reason of his death. Such
election shall state specifically whether it is his intention
to exclude the spouse, shall be in writing, and may be
revoked at any time. Such election or revocation shall take
effect upon being filed in the fund offices.
(c) If a surviving spouse annuity is payable to a former
spouse upon the death of an employee annuitant, the former
spouse, unless designated by the employee annuitant after
dissolution of the marriage, shall not be the beneficiary for
the purposes of the $3,000 death benefit payable under
subparagraph 6 of Section 7-164. This benefit shall be paid
to the designated beneficiary of the employee annuitant or,
if there is no designation, then to the estate of the
employee annuitant.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/7-132.2) (from Ch. 108 1/2, par. 7-132.2)
Sec. 7-132.2. Regional office of education Educational
Service Regions.
(a) A regional office of education serving 2 Educational
Service Regions comprised of two or more counties, except
those serving including a county of 1,000,000 inhabitants or
more, formed pursuant to Article 3A of the School Code shall
be included within and be subject to this Article, effective
as of the effective date of consolidation. For the purpose
of this Article, a regional office of education serving 2 an
Educational Service Region comprised of two or more counties
shall be considered a participating instrumentality but the
requirements of Sections 7-106 and 7-132 shall not apply to
it. Each county served by a regional office of education
that serves 2 in an Educational Service Region comprised of
two or more counties shall pay its proportional cost of the
office's region's municipality contributions. This cost
shall be included in the budget prepared under and
apportioned in the manner provided by Section 3A-7 of the
School Code. Each county may include the cost for its share
of the municipality contributions required for the regional
office of education region in its appropriation and tax levy
under Section 7-171 of this Article.
(b) At the request of the county, the Board may
designate any participating regional office of education
Educational Service Region to be a separate reporting entity
distinct from the county.
(Source: P.A. 87-740.)
(40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
Sec. 7-139. Credits and creditable service to employees.
(a) Each participating employee shall be granted credits
and creditable service, for purposes of determining the
amount of any annuity or benefit to which he or a beneficiary
is entitled, as follows:
1. For prior service: Each participating employee who is
an employee of a participating municipality or participating
instrumentality on the effective date shall be granted
creditable service, but no credits under paragraph 2 of this
subsection (a), for periods his entire period of prior
service for which credit has not been received under any
other pension fund or retirement system established under
this Code, as follows:.
If the effective date of participation for the
participating municipality or participating instrumentality
is on or before January 1, 1998, creditable service shall be
granted for the entire period of prior service with that
employer without any employee contribution.
If the effective date of participation for the
participating municipality or participating instrumentality
is after January 1, 1998, creditable service shall be granted
for the last 20% of the period of prior service with that
employer, but no more than 5 years, without any employee
contribution. A participating employee may establish
creditable service for the remainder of the period of prior
service with that employer by making an application in
writing, accompanied by payment of an employee contribution
in an amount determined by the Fund, based on the employee
contribution rates in effect at the time of application for
the creditable service and the employee's salary rate on the
effective date of participation for that employer, plus
interest at the effective rate from the date of the prior
service to the date of payment. Application for this
creditable service may be made at any time while the employee
is still in service.
Any person who has withdrawn from the service of a
participating municipality or participating instrumentality
prior to the effective date, who reenters the service of the
same municipality or participating instrumentality after the
effective date and becomes a participating employee is
entitled to creditable service for prior service as otherwise
provided in this subdivision (a)(1) only if he or she renders
2 years of service as a participating employee after the
effective date. provided Application for such service must
be is made while in a participating status. The salary rate
to be used in the calculation of the required employee
contribution, if any, shall be the employee's salary rate at
the time of first reentering service with the employer after
the employer's effective date of participation.
2. For current service, each participating employee
shall be credited with:
a. Additional credits of amounts equal to each
payment of additional contributions received from him
under Section 7-173, as of the date the corresponding
payment of earnings is payable to him.
b. Normal credits of amounts equal to each payment
of normal contributions received from him, as of the date
the corresponding payment of earnings is payable to him,
and normal contributions made for the purpose of
establishing out-of-state service credits as permitted
under the conditions set forth in paragraph 6 of this
subsection (a).
c. Municipality credits in an amount equal to 1.4
times the normal credits, except those established by
out-of-state service credits, as of the date of
computation of any benefit if these credits would
increase the benefit.
d. Survivor credits equal to each payment of
survivor contributions received from the participating
employee as of the date the corresponding payment of
earnings is payable, and survivor contributions made for
the purpose of establishing out-of-state service credits.
3. For periods of temporary and total and permanent
disability benefits, each employee receiving disability
benefits shall be granted creditable service for the period
during which disability benefits are payable. Normal and
survivor credits, based upon the rate of earnings applied for
disability benefits, shall also be granted if such credits
would result in a higher benefit to any such employee or his
beneficiary.
4. For authorized leave of absence without pay: A
participating employee shall be granted credits and
creditable service for periods of authorized leave of absence
without pay under the following conditions:
a. An application for credits and creditable
service is shall be submitted to the board while the
employee is in a status of active employment, and within
2 years after termination of the leave of absence period
for which credits and creditable service are sought.
b. Not more than 12 complete months of creditable
service for authorized leave of absence without pay shall
be counted for purposes of determining any benefits
payable under this Article.
c. Credits and creditable service shall be granted
for leave of absence only if such leave is approved by
the governing body of the municipality, including
approval of the estimated cost thereof to the
municipality as determined by the fund, and employee
contributions, plus interest at the effective rate
applicable for each year from the end of the period of
leave to date of payment, have been paid to the fund in
accordance with Section 7-173. The contributions shall
be computed upon the assumption earnings continued during
the period of leave at the rate in effect when the leave
began.
d. Benefits under the provisions of Sections 7-141,
7-146, 7-150 and 7-163 shall become payable to employees
on authorized leave of absence, or their designated
beneficiary, only if such leave of absence is creditable
hereunder, and if the employee has at least one year of
creditable service other than the service granted for
leave of absence. Any employee contributions due may be
deducted from any benefits payable.
e. No credits or creditable service shall be
allowed for leave of absence without pay during any
period of prior service.
5. For military service: The governing body of a
municipality or participating instrumentality may elect to
allow creditable service to participating employees who leave
their employment to serve in the armed forces of the United
States for all periods of such service, provided that the
such person returns to active employment within 90 days after
completion of full time active duty, but no creditable
service shall be allowed such person for any period that can
be used in the computation of a pension or any other pay or
benefit, other than pay for active duty, for service in any
branch of the armed forces of the United States. If
necessary to the computation of any benefit, the board shall
establish municipality credits for participating employees
under this paragraph on the assumption that the employee
received earnings at the rate received at the time he left
the employment to enter the armed forces. A participating
employee in the armed forces shall not be considered an
employee during such period of service and no additional
death and no disability benefits are payable for death or
disability during such period.
Any participating employee who left his employment with a
municipality or participating instrumentality to serve in the
armed forces of the United States and who again became a
participating employee within 90 days after completion of
full time active duty by entering the service of a different
municipality or participating instrumentality, which has
elected to allow creditable service for periods of military
service under the preceding paragraph, shall also be allowed
creditable service for his period of military service on the
same terms that would apply if he had been employed, before
entering military service, by the municipality or
instrumentality which employed him after he left the military
service and the employer costs arising in relation to such
grant of creditable service shall be charged to and paid by
that municipality or instrumentality.
Notwithstanding the foregoing, any participating employee
shall be entitled to creditable service as required by any
federal law relating to re-employment rights of persons who
served in the United States Armed Services. Such creditable
service shall be granted upon payment by the member of an
amount equal to the employee contributions which would have
been required had the employee continued in service at the
same rate of earnings during the military leave period, plus
interest at the effective rate.
5.1. In addition to any creditable service established
under paragraph 5 of this subsection (a), creditable service
may be granted for up to 24 months of service in the armed
forces of the United States.
In order to receive creditable service for military
service under this paragraph 5.1, a participating employee
must (1) apply to the Fund in writing and provide evidence of
the military service that is satisfactory to the Board; (2)
obtain the written approval of the current employer; and (3)
make contributions to the Fund equal to (i) the employee
contributions that would have been required had the service
been rendered as a member, plus (ii) an amount determined by
the board to be equal to the employer's normal cost of the
benefits accrued for that military service, plus (iii)
interest on items (i) and (ii) from the date of first
membership in the Fund to the date of payment. If payment is
made during the 6-month period that begins 3 months after the
effective date of this amendatory Act of 1997, the required
interest shall be at the rate of 2.5% per year, compounded
annually; otherwise, the required interest shall be
calculated at the regular interest rate.
6. For out-of-state service: Creditable service shall be
granted for service rendered to an out-of-state local
governmental body under the following conditions: The
employee had participated and has irrevocably forfeited all
rights to benefits in the out-of-state public employees
pension system; the governing body of his participating
municipality or instrumentality authorizes the employee to
establish such service; the employee has 2 years current
service with this municipality or participating
instrumentality; the employee makes a payment of
contributions, which shall be computed at 8% (normal) plus 2%
(survivor) times length of service purchased times the
average rate of earnings for the first 2 years of service
with the municipality or participating instrumentality whose
governing body authorizes the service established plus
interest at the effective rate on the date such credits are
established, payable from the date the employee completes the
required 2 years of current service to date of payment. In
no case shall more than 120 months of creditable service be
granted under this provision.
7. For retroactive service: Any employee who could have
but did not elect to become a participating employee, or who
should have been a participant in the Municipal Public
Utilities Annuity and Benefit Fund before that fund was
superseded, may receive creditable service for the period of
service not to exceed 50 months; however, a current or former
county board member may establish credit under this paragraph
7 for more than 50 months of service as a member of the
county board if the excess over 50 months is approved by
resolution of the affected county board filed with the Fund
before January 1, 1999.
Any employee who is a participating employee on or after
September 24, 1981 and who was excluded from participation by
the age restrictions removed by Public Act 82-596 may receive
creditable service for the period, on or after January 1,
1979, excluded by the age restriction and, in addition, if
the governing body of the participating municipality or
participating instrumentality elects to allow creditable
service for all employees excluded by the age restriction
prior to January 1, 1979, for service during the period prior
to that date excluded by the age restriction. Any employee
who was excluded from participation by the age restriction
removed by Public Act 82-596 and who is not a participating
employee on or after September 24, 1981 may receive
creditable service for service after January 1, 1979.
Creditable service under this paragraph shall be granted upon
payment of the employee contributions which would have been
required had he participated, with interest at the effective
rate for each year from the end of the period of service
established to date of payment.
8. For accumulated unused sick leave: A participating
employee who is applying for a retirement annuity shall be
entitled to creditable service for that portion of the
employee's his accumulated unused sick leave for which
payment is not received, as follows:
a. Sick leave days shall be limited to those
accumulated under a sick leave plan established by a
participating municipality or participating
instrumentality which is available to all employees or a
class of employees.
b. Only sick leave days accumulated with a
participating municipality or participating
instrumentality with which the employee was in service
within 60 days of the effective date of his retirement
annuity shall be credited; If the employee was in service
with more than one employer during this period only the
sick leave days with the employer with which the employee
has the greatest number of unpaid sick leave days shall
be considered.
c. The creditable service granted shall be
considered solely for the purpose of computing the amount
of the retirement annuity and shall not be used to
establish any minimum service period required by any
provision of the Illinois Pension Code, the effective
date of the retirement annuity, or the final rate of
earnings.
d. The creditable service shall be at the rate of
1/20 of a month for each full sick day, provided that no
more than 12 months may be credited under this
subdivision 8.
e. Employee contributions shall not be required for
creditable service under this subdivision 8.
f. Each participating municipality and
participating instrumentality with which an employee has
service within 60 days of the effective date of his
retirement annuity shall certify to the board the number
of accumulated unpaid sick leave days credited to the
employee at the time of termination of service.
9. For service transferred from another system: Credits
and creditable service shall be granted for service under
Article 3, 4, 5, 14 or 16 of this Act, to any active member
of this Fund, and to any inactive member who has been a
county sheriff, upon transfer of such credits pursuant to
Section 3-110.3, 4-108.3, 5-235, 14-105.6 or 16-131.4, and
payment by the member of the amount by which (1) the employer
and employee contributions that would have been required if
he had participated in this Fund as a sheriff's law
enforcement employee during the period for which credit is
being transferred, plus interest thereon at the effective
rate for each year, compounded annually, from the date of
termination of the service for which credit is being
transferred to the date of payment, exceeds (2) the amount
actually transferred to the Fund. Such transferred service
shall be deemed to be service as a sheriff's law enforcement
employee for the purposes of Section 7-142.1.
(b) Creditable service - amount: 1. One month of
creditable service shall be allowed for each month for which
a participating employee made contributions as required under
Section 7-173, or for which creditable service is otherwise
granted hereunder. Not more than 1 month of service shall be
credited and counted for 1 calendar month, and not more than
1 year of service shall be credited and counted for any
calendar year. A calendar month means a nominal month
beginning on the first day thereof, and a calendar year means
a year beginning January 1 and ending December 31.
2. A seasonal employee shall be given 12 months of
creditable service if he renders the number of months of
service normally required by the position in a 12-month
period and he remains in service for the entire 12-month
period. Otherwise a fractional year of service in the number
of months of service rendered shall be credited.
3. An intermittent employee shall be given creditable
service for only those months in which a contribution is made
under Section 7-173.
(c) No application for correction of credits or
creditable service shall be considered unless the board
receives an application for correction while (1) the
applicant is a participating employee and in active
employment with a participating municipality or
instrumentality, or (2) while the applicant is actively
participating in a pension fund or retirement system which is
a participating system under the Retirement Systems
Reciprocal Act. A participating employee or other applicant
shall not be entitled to credits or creditable service unless
the required employee contributions are made in a lump sum or
in installments made in accordance with board rule.
(d) Upon the granting of a retirement, surviving spouse
or child annuity, a death benefit or a separation benefit, on
account of any employee, all individual accumulated credits
shall thereupon terminate. Upon the withdrawal of additional
contributions, the credits applicable thereto shall thereupon
terminate.
(Source: P.A. 86-273; 86-1028; 87-740.)
(40 ILCS 5/7-145) (from Ch. 108 1/2, par. 7-145)
Sec. 7-145. Reversionary annuities.
(a) An employee entitled to a retirement annuity may
elect to provide a reversionary annuity for a beneficiary if,
at the time such retirement annuity begins:
1. Under the provisions of paragraph (a) 1 of Section
7-142 he is entitled to an immediate annuity of at least $10
per month; and
2. His accumulated additional and optional credits are
sufficient to provide a reversionary annuity, of at least $10
per month, for the beneficiary.
(b) An election shall become effective only:
1. If a written notice thereof by the employee is
received by the board together with his application for
retirement annuity; and
2. If the amount of the beneficiary's reversionary
annuity specified in the notice is not less than $10 nor more
than that which can be provided, at the time, by the
accumulation of additional and optional credits.
(c) The amount of the reversionary annuity shall be that
specified in the notice of election.
(d) Reversionary annuity shall begin the first day of
the month following the month in which the last payment of
the employee annuity is payable because of death, provided
the beneficiary is alive at such time. If the beneficiary
does not survive the annuitant, no reversionary annuity shall
be payable, but only the death benefit as provided in
Sections 7-163 and 7-164.
(e) No reversionary annuity shall be awarded to be
effective on or after January 1, 1986, but reversionary
annuities granted prior to that date shall continue to be
paid.
(Source: P.A. 84-812.)
(40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
Sec. 7-171. Finance; taxes.
(a) Each municipality other than a school district shall
appropriate an amount sufficient to provide for the current
municipality contributions required by Section 7-172 of this
Article, for the fiscal year for which the appropriation is
made and all amounts due for municipal contributions for
previous years. Those municipalities which have been assessed
an annual amount to amortize its unfunded obligation, as
provided in subparagraph 5 of paragraph (a) of Section 7-172
of this Article, shall include in the appropriation an amount
sufficient to pay the amount assessed. The appropriation
shall be based upon an estimate of assets available for
municipality contributions and liabilities therefor for the
fiscal year for which appropriations are to be made,
including funds available from levies for this purpose in
prior years.
(b) For the purpose of providing monies for municipality
contributions, beginning for the year in which a municipality
is included in this fund:
(1) A municipality other than a school district may
levy a tax which shall not exceed the amount appropriated
for municipality contributions.
(2) A school district may levy a tax in an amount
reasonably calculated at the time of the levy to provide
for the municipality contributions required under Section
7-172 of this Article for the fiscal years for which
revenues from the levy will be received and all amounts
due for municipal contributions for previous years. Any
levy adopted before the effective date of this amendatory
Act of 1995 by a school district shall be considered
valid and authorized to the extent that the amount was
reasonably calculated at the time of the levy to provide
for the municipality contributions required under Section
7-172 for the fiscal years for which revenues from the
levy will be received and all amounts due for municipal
contributions for previous years. In no event shall a
budget adopted by a school district limit a levy of that
school district adopted under this Section.
(c) Any county which is served by a regional office of
education that serves 2 a part of an educational service
region comprised of two or more counties formed under Section
3A of the School Code may include in its appropriation an
amount sufficient to provide its proportionate share of the
municipality contributions for that regional office of
education of the region. The tax levy authorized by this
Section may include an amount necessary to provide monies for
this contribution.
(d) Any county that is a part of a multiple-county
health department or consolidated health department which is
formed under "An Act in relation to the establishment and
maintenance of county and multiple-county public health
departments", approved July 9, 1943, as amended, and which is
a participating instrumentality may include in the county's
appropriation an amount sufficient to provide its
proportionate share of municipality contributions of the
department. The tax levy authorized by this Section may
include the amount necessary to provide monies for this
contribution.
(e) Such tax shall be levied and collected in like
manner, with the general taxes of the municipality and shall
be in addition to all other taxes which the municipality is
now or may hereafter be authorized to levy upon all taxable
property therein, and shall be exclusive of and in addition
to the amount of tax levied for general purposes under
Section 8-3-1 of the "Illinois Municipal Code", approved May
29, 1961, as amended, or under any other law or laws which
may limit the amount of tax which the municipality may levy
for general purposes. The tax may be levied by the governing
body of the municipality without being authorized as being
additional to all other taxes by a vote of the people of the
municipality.
(f) The county clerk of the county in which any such
municipality is located, in reducing tax levies shall not
consider any such tax as a part of the general tax levy for
municipality purposes, and shall not include the same in the
limitation of any other tax rate which may be extended.
(g) The amount of the tax to be levied in any year
shall, within the limits herein prescribed, be determined by
the governing body of the respective municipality.
(h) The revenue derived from any such tax levy shall be
used only for the purposes specified in this Article, and, as
collected, shall be paid to the treasurer of the municipality
levying the tax. Monies received by a county treasurer for
use in making contributions to a regional office of education
consolidated educational service region for its municipality
contributions shall be held by him for that purpose and paid
to the regional office of education region in the same manner
as other monies appropriated for the expense of the regional
office region.
(Source: P.A. 89-329, eff. 8-17-95.)
(40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
Sec. 7-172. Contributions by participating
municipalities and participating instrumentalities.
(a) Each participating municipality and each
participating instrumentality shall make payment to the fund
as follows:
1. municipality contributions in an amount
determined by applying the municipality contribution rate
to each payment of earnings paid to each of its
participating employees;
2. an amount equal to the employee contributions
provided by paragraphs (a) and (b) of Section 7-173,
whether or not the employee contributions are withheld as
permitted by that Section;
3. all accounts receivable, together with interest
charged thereon, as provided in Section 7-209;
4. if it has no participating employees with
current earnings, an amount payable which, over a period
of 20 years beginning with the year following an award of
benefit, will amortize, at the effective rate for that
year, any negative balance in its municipality reserve
resulting from the award. This amount when established
will be payable as a separate contribution whether or not
it later has participating employees.
(b) A separate municipality contribution rate shall be
determined for each calendar year for all participating
municipalities together with all instrumentalities thereof.
The municipality contribution rate shall be determined for
participating instrumentalities as if they were participating
municipalities. The municipality contribution rate shall be
the sum of the following percentages:
1. The percentage of earnings of all the
participating employees of all participating
municipalities and participating instrumentalities which,
if paid over the entire period of their service, will be
sufficient when combined with all employee contributions
available for the payment of benefits, to provide all
annuities for participating employees, and the $3,000
death benefit payable under Sections 7-158 and 7-164,
such percentage to be known as the normal cost rate.
2. The percentage of earnings of the participating
employees of each participating municipality and
participating instrumentalities necessary to adjust for
the difference between the present value of all benefits,
excluding temporary and total and permanent disability
and death benefits, to be provided for its participating
employees and the sum of its accumulated municipality
contributions and the accumulated employee contributions
and the present value of expected future employee and
municipality contributions pursuant to subparagraph 1 of
this paragraph (b). This adjustment shall be spread over
the remainder of the period of 40 years from the first of
the year following the date of determination.
3. The percentage of earnings of the participating
employees of all municipalities and participating
instrumentalities necessary to provide the present value
of all temporary and total and permanent disability
benefits granted during the most recent year for which
information is available.
4. The percentage of earnings of the participating
employees of all participating municipalities and
participating instrumentalities necessary to provide the
present value of the net single sum death benefits
expected to become payable from the reserve established
under Section 7-206 during the year for which this rate
is fixed.
5. The percentage of earnings necessary to meet any
deficiency arising in the Terminated Municipality
Reserve.
(c) A separate municipality contribution rate shall be
computed for each participating municipality or participating
instrumentality for its sheriff's law enforcement employees.
A separate municipality contribution rate shall be
computed for the sheriff's law enforcement employees of each
forest preserve district that elects to have such employees.
For the period from January 1, 1986 to December 31, 1986,
such rate shall be the forest preserve district's regular
rate plus 2%.
In the event that the Board determines that there is an
actuarial deficiency in the account of any municipality with
respect to a person who has elected to participate in the
Fund under Section 3-109.1 of this Code, the Board may adjust
the municipality's contribution rate so as to make up that
deficiency over such reasonable period of time as the Board
may determine.
(d) The Board may establish a separate municipality
contribution rate for all employees who are program
participants employed under the Federal Comprehensive
Employment Training Act by all of the participating
municipalities and instrumentalities. The Board may also
provide that, in lieu of a separate municipality rate for
these employees, a portion of the municipality contributions
for such program participants shall be refunded or an extra
charge assessed so that the amount of municipality
contributions retained or received by the fund for all CETA
program participants shall be an amount equal to that which
would be provided by the separate municipality contribution
rate for all such program participants. Refunds shall be
made to prime sponsors of programs upon submission of a claim
therefor and extra charges shall be assessed to participating
municipalities and instrumentalities. In establishing the
municipality contribution rate as provided in paragraph (b)
of this Section, the use of a separate municipality
contribution rate for program participants or the refund of a
portion of the municipality contributions, as the case may
be, may be considered.
(e) Computations of municipality contribution rates for
the following calendar year shall be made prior to the
beginning of each year, from the information available at the
time the computations are made, and on the assumption that
the employees in each participating municipality or
participating instrumentality at such time will continue in
service until the end of such calendar year at their
respective rates of earnings at such time.
(f) Any municipality which is the recipient of State
allocations representing that municipality's contributions
for retirement annuity purposes on behalf of its employees as
provided in Section 12-21.16 of the Illinois Public Aid Code
shall pay the allocations so received to the Board for such
purpose. Estimates of State allocations to be received
during any taxable year shall be considered in the
determination of the municipality's tax rate for that year
under Section 7-171. If a special tax is levied under
Section 7-171, none of the proceeds may be used to reimburse
the municipality for the amount of State allocations received
and paid to the Board. Any multiple-county or consolidated
health department which receives contributions from a county
under Section 11.2 of "An Act in relation to establishment
and maintenance of county and multiple-county health
departments", approved July 9, 1943, as amended, or
distributions under Section 3 of the Department of Public
Health Act, shall use these only for municipality
contributions by the health department.
(g) Municipality contributions for the several purposes
specified shall, for township treasurers and employees in the
offices of the township treasurers who meet the qualifying
conditions for coverage hereunder, be allocated among the
several school districts and parts of school districts
serviced by such treasurers and employees in the proportion
which the amount of school funds of each district or part of
a district handled by the treasurer bears to the total amount
of all school funds handled by the treasurer.
From the funds subject to allocation among districts and
parts of districts pursuant to the School Code, the trustees
shall withhold the proportionate share of the liability for
municipality contributions imposed upon such districts by
this Section, in respect to such township treasurers and
employees and remit the same to the Board.
The municipality contribution rate for an educational
service center shall initially be the same rate for each year
as the regional office of education consolidated educational
service region or school district which serves as its
administrative agent. When actuarial data become available,
a separate rate shall be established as provided in
subparagraph (i) of this Section.
The municipality contribution rate for a public agency,
other than a vocational education cooperative, formed under
the Intergovernmental Cooperation Act shall initially be the
average rate for the municipalities which are parties to the
intergovernmental agreement. When actuarial data become
available, a separate rate shall be established as provided
in subparagraph (i) of this Section.
(h) Each participating municipality and participating
instrumentality shall make the contributions in the amounts
provided in this Section in the manner prescribed from time
to time by the Board and all such contributions shall be
obligations of the respective participating municipalities
and participating instrumentalities to this fund. The
failure to deduct any employee contributions shall not
relieve the participating municipality or participating
instrumentality of its obligation to this fund. Delinquent
payments of contributions due under this Section may, with
interest, be recovered by civil action against the
participating municipalities or participating
instrumentalities. Municipality contributions, other than
the amount necessary for employee contributions and Social
Security contributions, for periods of service by employees
from whose earnings no deductions were made for employee
contributions to the fund, may be charged to the municipality
reserve for the municipality or participating
instrumentality.
(i) Contributions by participating instrumentalities
shall be determined as provided herein except that the
percentage derived under subparagraph 2 of paragraph (b) of
this Section, and the amount payable under subparagraph 5 of
paragraph (a) of this Section, shall be based on an
amortization period of 10 years.
(Source: P.A. 86-273; 87-850.)
(40 ILCS 5/7-199.3 new)
Sec. 7-199.3. To establish and administer deferred
compensation and tax-deferred annuity programs for units of
local government.
The Board may establish and administer deferred
compensation, tax deferred annuity, and similar tax-savings
programs for employees of units of local government, which
shall be known as the "IMRF-Plus" program. The program shall
provide for the Board to review proposed investment offerings
and shall require that only investments determined to be
acceptable by the Board may be used for investing
compensation contributed to the program.
The program shall include appropriate provisions
pertaining to its day to day operation, including methods of
electing to contribute income, methods of changing the amount
of income contributed, methods of selecting from among
investment options available under the program, and any other
provisions that the Board may deem appropriate.
The program shall provide for the preparation of
pamphlets describing the program and outlining the options
and opportunities available to local government employees
under the program. These pamphlets shall be distributed from
time to time to all eligible employees.
The program established under this Section shall not be
implemented or amended until the Board is satisfied that
compensation contributed under the program is not subject to
income tax for the year in which it is earned and that the
taxation of such compensation will be deferred until the time
of its distribution to the employee.
The program shall also provide for the recovery of the
expenses of its administration by charging those expenses
against the earnings from investments, by charging fees
equitably prorated among the participating local government
employees, or by some other appropriate and equitable method
determined by the Board. Different methods for recovery of
administrative expenses may be provided in relation to
different types of investment programs, and the Board may
provide for the allocation of administration expenses among
varying types of programs for this purpose.
The Board shall review and oversee the administration of
the program.
This Section does not limit the power or authority of any
unit of local government, school district, or institution
supported in whole or in part by public funds to establish
and administer any other deferred compensation plans or
tax-deferred annuity programs that may be authorized by law.
(40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
Sec. 14-103.05. Employee. Any person employed by a
Department who receives salary for personal services rendered
to the Department on a warrant issued pursuant to a payroll
voucher certified by a Department and drawn by the State
Comptroller upon the State Treasurer, including an elected
official described in subparagraph (d) of Section 14-104,
shall become an employee for purpose of membership in the
Retirement System on the first day of such employment.
A person entering service on or after January 1, 1972 and
prior to January 1, 1984 shall become a member as a condition
of employment and shall begin making contributions as of the
first day of employment.
A person entering service on or after January 1, 1984
shall, upon completion of 6 months of continuous service
which is not interrupted by a break of more than 2 months,
become a member as a condition of employment. Contributions
shall begin the first of the month after completion of the
qualifying period.
The qualifying period of 6 months of service is not
applicable to: (1) a person who has been granted credit for
service in a position covered by the State Universities
Retirement System, the Teachers' Retirement System of the
State of Illinois, the General Assembly Retirement System, or
the Judges Retirement System of Illinois unless that service
has been forfeited under the laws of those systems; (2) a
person entering service on or after July 1, 1991 in a
noncovered position; or (3) a person to whom Section
14-108.2a or 14-108.2b applies.
The term "employee" does not include the following:
(1) members of the State Legislature, and persons
electing to become members of the General Assembly
Retirement System pursuant to Section 2-105;
(2) incumbents of offices normally filled by vote
of the people;
(3) except as otherwise provided in this Section,
any person appointed by the Governor with the advice and
consent of the Senate unless that person elects to
participate in this system;
(4) except as provided in Section 14-108.2, any
person who is covered or eligible to be covered by the
Teachers' Retirement System of the State of Illinois, the
State Universities Retirement System, or the Judges
Retirement System of Illinois;
(5) an employee of a municipality or any other
political subdivision of the State;
(6) any person who becomes an employee after June
30, 1979 as a public service employment program
participant under the Federal Comprehensive Employment
and Training Act and whose wages or fringe benefits are
paid in whole or in part by funds provided under such
Act;
(7) enrollees of the Illinois Young Adult
Conservation Corps program, administered by the
Department of Natural Resources, authorized grantee
pursuant to Title VIII of the "Comprehensive Employment
and Training Act of 1973", 29 USC 993, as now or
hereafter amended;
(8) enrollees and temporary staff of programs
administered by the Department of Natural Resources under
the Youth Conservation Corps Act of 1970;
(9) any person who is a member of any professional
licensing or disciplinary board created under an Act
administered by the Department of Professional Regulation
or a successor agency or created or re-created after the
effective date of this amendatory Act of 1997, and who
receives per diem compensation rather than a salary,
notwithstanding that such per diem compensation is paid
by warrant issued pursuant to a payroll voucher; such
persons have never been included in the membership of
this System, and this amendatory Act of 1987 (P.A.
84-1472) is not intended to effect any change in the
status of such persons;
(10) any person who is a member of the Illinois
Health Care Cost Containment Council, and receives per
diem compensation rather than a salary, notwithstanding
that such per diem compensation is paid by warrant issued
pursuant to a payroll voucher; such persons have never
been included in the membership of this System, and this
amendatory Act of 1987 is not intended to effect any
change in the status of such persons; or
(11) any person who is a member of the Oil and Gas
Board created by Section 1.2 of the Illinois Oil and Gas
Act, and receives per diem compensation rather than a
salary, notwithstanding that such per diem compensation
is paid by warrant issued pursuant to a payroll voucher.
(Source: P.A. 88-535; 89-246; eff. 8-4-95; 89-445, eff.
2-7-96.)
(40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104)
Sec. 14-104. Service for which contributions permitted.
Contributions provided for in this Section shall cover the
period of service granted, and be based upon employee's
compensation and contribution rate in effect on the date he
last became a member of the System; provided that for all
employment prior to January 1, 1969 the contribution rate
shall be that in effect for a noncovered employee on the date
he last became a member of the System. Contributions
permitted under this Section shall include regular interest
from the date an employee last became a member of the System
to date of payment.
These contributions must be paid in full before
retirement either in a lump sum or in installment payments in
accordance with such rules as may be adopted by the board.
(a) Any member may make contributions as required in
this Section for any period of service, subsequent to the
date of establishment, but prior to the date of membership.
(b) Any employee who had been previously excluded from
membership because of age at entry and subsequently became
eligible may elect to make contributions as required in this
Section for the period of service during which he was
ineligible.
(c) An employee of the Department of Insurance who,
after January 1, 1944 but prior to becoming eligible for
membership, received salary from funds of insurance companies
in the process of rehabilitation, liquidation, conservation
or dissolution, may elect to make contributions as required
in this Section for such service.
(d) Any employee who rendered service in a State office
to which he was elected, or rendered service in the elective
office of Clerk of the Appellate Court prior to the date he
became a member, may make contributions for such service as
required in this Section. Any member who served by
appointment of the Governor under the Civil Administrative
Code of Illinois and did not participate in this System may
make contributions as required in this Section for such
service.
(e) Any person employed by the United States government
or any instrumentality or agency thereof from January 1, 1942
through November 15, 1946 as the result of a transfer from
State service by executive order of the President of the
United States shall be entitled to prior service credit
covering the period from January 1, 1942 through December 31,
1943 as provided for in this Article and to membership
service credit for the period from January 1, 1944 through
November 15, 1946 by making the contributions required in
this Section. A person so employed on January 1, 1944 but
whose employment began after January 1, 1942 may qualify for
prior service and membership service credit under the same
conditions.
(f) An employee of the Department of Labor of the State
of Illinois who performed services for and under the
supervision of that Department prior to January 1, 1944 but
who was compensated for those services directly by federal
funds and not by a warrant of the Auditor of Public Accounts
paid by the State Treasurer may establish credit for such
employment by making the contributions required in this
Section. An employee of the Department of Agriculture of the
State of Illinois, who performed services for and under the
supervision of that Department prior to June 1, 1963, but was
compensated for those services directly by federal funds and
not paid by a warrant of the Auditor of Public Accounts paid
by the State Treasurer, and who did not contribute to any
other public employee retirement system for such service, may
establish credit for such employment by making the
contributions required in this Section.
(g) Any employee who executed a waiver of membership
within 60 days prior to January 1, 1944 may, at any time
while in the service of a department, file with the board a
rescission of such waiver. Upon making the contributions
required by this Section, the member shall be granted the
creditable service that would have been received if the
waiver had not been executed.
(h) Until May 1, 1990, an employee who was employed on a
full-time basis by a regional planning commission for at
least 5 continuous years may establish creditable service for
such employment by making the contributions required under
this Section, provided that any credits earned by the
employee in the commission's retirement plan have been
terminated.
(i) Any person who rendered full time contractual
services to the General Assembly as a member of a legislative
staff may establish service credit for up to 8 years of such
services by making the contributions required under this
Section, provided that application therefor is made not later
than July 1, 1991.
(j) By paying the contributions otherwise required under
this Section, plus an amount determined by the Board to be
equal to the employer's normal cost of the benefit plus
interest, an employee may establish service credit for a
period of up to 2 years spent in active military service for
which he does not qualify for credit under Section 14-105,
provided that (1) he was not dishonorably discharged from
such military service, and (2) the amount of service credit
established by a member under this subsection (j), when added
to the amount of military service credit granted to the
member under subsection (b) of Section 14-105, shall not
exceed 5 years.
(k) An employee who was employed on a full-time basis by
the Illinois State's Attorneys Association Statewide
Appellate Assistance Service LEAA-ILEC grant project prior to
the time that project became the State's Attorneys Appellate
Service Commission, now the Office of the State's Attorneys
Appellate Prosecutor, an agency of State government, may
establish creditable service for not more than 60 months
service for such employment by making contributions required
under this Section.
(l) Any person who rendered contractual services to a
member of the General Assembly as a worker in the member's
district office may establish creditab