Public Act 90-0511 of the 90th General Assembly
Public Act 90-0511
HB1641 Enrolled LRB9001767MWpc
AN ACT in relation to public employees, amending named
Acts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. The State Employees Group Insurance Act of
1971 is amended by changing Section 3 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 an optional 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
an optional 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, the Board of Examiners established under the Illinois
Public Accounting Act, 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 an optional 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
an optional 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 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 an optional 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
an optional 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, the Board of Examiners established under the Illinois
Public Accounting Act, 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 an optional 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
an optional 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 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.)
Section 1.5. The Property Tax Code is amended by
changing Section 18-185 as follows:
(35 ILCS 200/18-185)
Sec. 18-185. Short title; definitions. This Section and
Sections 18-190 through 18-245 may be cited as the Property
Tax Extension Limitation Law. As used in Sections 18-190
through 18-245:
"Consumer Price Index" means the Consumer Price Index for
All Urban Consumers for all items published by the United
States Department of Labor.
"Extension limitation" means (a) the lesser of 5% or the
percentage increase in the Consumer Price Index during the
12-month calendar year preceding the levy year or (b) the
rate of increase approved by voters under Section 18-205.
"Affected county" means a county of 3,000,000 or more
inhabitants or a county contiguous to a county of 3,000,000
or more inhabitants.
"Taxing district" has the same meaning provided in
Section 1-150, except as otherwise provided in this Section.
For the 1991 through 1994 levy years only, "taxing district"
includes only each non-home rule taxing district having the
majority of its 1990 equalized assessed value within any
county or counties contiguous to a county with 3,000,000 or
more inhabitants. Beginning with the 1995 levy year, "taxing
district" includes only each non-home rule taxing district
subject to this Law before the 1995 levy year and each
non-home rule taxing district not subject to this Law before
the 1995 levy year having the majority of its 1994 equalized
assessed value in an affected county or counties. Beginning
with the levy year in which this Law becomes applicable to a
taxing district as provided in Section 18-213, "taxing
district" also includes those taxing districts made subject
to this Law as provided in Section 18-213.
"Aggregate extension" for taxing districts to which this
Law applied before the 1995 levy year means the annual
corporate extension for the taxing district and those special
purpose extensions that are made annually for the taxing
district, excluding special purpose extensions: (a) made for
the taxing district to pay interest or principal on general
obligation bonds that were approved by referendum; (b) made
for any taxing district to pay interest or principal on
general obligation bonds issued before October 1, 1991; (c)
made for any taxing district to pay interest or principal on
bonds issued to refund or continue to refund those bonds
issued before October 1, 1991; (d) made for any taxing
district to pay interest or principal on bonds issued to
refund or continue to refund bonds issued after October 1,
1991 that were approved by referendum; (e) made for any
taxing district to pay interest or principal on revenue bonds
issued before October 1, 1991 for payment of which a property
tax levy or the full faith and credit of the unit of local
government is pledged; however, a tax for the payment of
interest or principal on those bonds shall be made only after
the governing body of the unit of local government finds that
all other sources for payment are insufficient to make those
payments; (f) made for payments under a building commission
lease when the lease payments are for the retirement of bonds
issued by the commission before October 1, 1991, to pay for
the building project; (g) made for payments due under
installment contracts entered into before October 1, 1991;
(h) made for payments of principal and interest on bonds
issued under the Metropolitan Water Reclamation District Act
to finance construction projects initiated before October 1,
1991; (i) made for payments of principal and interest on
limited bonds, as defined in Section 3 of the Local
Government Debt Reform Act, in an amount not to exceed the
debt service extension base less the amount in items (b),
(c), (e), and (h) of this definition for non-referendum
obligations, except obligations initially issued pursuant to
referendum; and (j) made for payments of principal and
interest on bonds issued under Section 15 of the Local
Government Debt Reform Act; and (k) made by a school district
that participates in the Special Education District of Lake
County, created by special education joint agreement under
Section 10-22.31 of the School Code, for payment of the
school district's share of the amounts required to be
contributed by the Special Education District of Lake County
to the Illinois Municipal Retirement Fund under Article 7 of
the Illinois Pension Code; the amount of any extension under
this item (k) shall be certified by the school district to
the county clerk.
"Aggregate extension" for the taxing districts to which
this Law did not apply before the 1995 levy year (except
taxing districts subject to this Law in accordance with
Section 18-213) means the annual corporate extension for the
taxing district and those special purpose extensions that are
made annually for the taxing district, excluding special
purpose extensions: (a) made for the taxing district to pay
interest or principal on general obligation bonds that were
approved by referendum; (b) made for any taxing district to
pay interest or principal on general obligation bonds issued
before March 1, 1995; (c) made for any taxing district to pay
interest or principal on bonds issued to refund or continue
to refund those bonds issued before March 1, 1995; (d) made
for any taxing district to pay interest or principal on bonds
issued to refund or continue to refund bonds issued after
March 1, 1995 that were approved by referendum; (e) made for
any taxing district to pay interest or principal on revenue
bonds issued before March 1, 1995 for payment of which a
property tax levy or the full faith and credit of the unit of
local government is pledged; however, a tax for the payment
of interest or principal on those bonds shall be made only
after the governing body of the unit of local government
finds that all other sources for payment are insufficient to
make those payments; (f) made for payments under a building
commission lease when the lease payments are for the
retirement of bonds issued by the commission before March 1,
1995 to pay for the building project; (g) made for payments
due under installment contracts entered into before March 1,
1995; (h) made for payments of principal and interest on
bonds issued under the Metropolitan Water Reclamation
District Act to finance construction projects initiated
before October 1, 1991; (i) made for payments of principal
and interest on limited bonds, as defined in Section 3 of the
Local Government Debt Reform Act, in an amount not to exceed
the debt service extension base less the amount in items (b),
(c), (e), and (h) of this definition for non-referendum
obligations, except obligations initially issued pursuant to
referendum; (j) made for payments of principal and interest
on bonds issued under Section 15 of the Local Government Debt
Reform Act; (k) made for payments of principal and interest
on bonds authorized by Public Act 88-503 and issued under
Section 20a of the Chicago Park District Act for aquarium or
museum projects; and (l) made for payments of principal and
interest on bonds authorized by Public Act 87-1191 and issued
under Section 42 of the Cook County Forest Preserve District
Act for zoological park projects.
"Aggregate extension" for all taxing districts to which
this Law applies in accordance with Section 18-213, except
for those taxing districts subject to paragraph (2) of
subsection (e) of Section 18-213, means the annual corporate
extension for the taxing district and those special purpose
extensions that are made annually for the taxing district,
excluding special purpose extensions: (a) made for the taxing
district to pay interest or principal on general obligation
bonds that were approved by referendum; (b) made for any
taxing district to pay interest or principal on general
obligation bonds issued before the date on which the
referendum making this Law applicable to the taxing district
is held; (c) made for any taxing district to pay interest or
principal on bonds issued to refund or continue to refund
those bonds issued before the date on which the referendum
making this Law applicable to the taxing district is held;
(d) made for any taxing district to pay interest or principal
on bonds issued to refund or continue to refund bonds issued
after the date on which the referendum making this Law
applicable to the taxing district is held if the bonds were
approved by referendum after the date on which the referendum
making this Law applicable to the taxing district is held;
(e) made for any taxing district to pay interest or principal
on revenue bonds issued before the date on which the
referendum making this Law applicable to the taxing district
is held for payment of which a property tax levy or the full
faith and credit of the unit of local government is pledged;
however, a tax for the payment of interest or principal on
those bonds shall be made only after the governing body of
the unit of local government finds that all other sources for
payment are insufficient to make those payments; (f) made for
payments under a building commission lease when the lease
payments are for the retirement of bonds issued by the
commission before the date on which the referendum making
this Law applicable to the taxing district is held to pay for
the building project; (g) made for payments due under
installment contracts entered into before the date on which
the referendum making this Law applicable to the taxing
district is held; (h) made for payments of principal and
interest on limited bonds, as defined in Section 3 of the
Local Government Debt Reform Act, in an amount not to exceed
the debt service extension base less the amount in items (b),
(c), and (e) of this definition for non-referendum
obligations, except obligations initially issued pursuant to
referendum; (i) made for payments of principal and interest
on bonds issued under Section 15 of the Local Government Debt
Reform Act; and (j) made for a qualified airport authority to
pay interest or principal on general obligation bonds issued
for the purpose of paying obligations due under, or financing
airport facilities required to be acquired, constructed,
installed or equipped pursuant to, contracts entered into
before March 1, 1996 (but not including any amendments to
such a contract taking effect on or after that date).
"Aggregate extension" for all taxing districts to which
this Law applies in accordance with paragraph (2) of
subsection (e) of Section 18-213 means the annual corporate
extension for the taxing district and those special purpose
extensions that are made annually for the taxing district,
excluding special purpose extensions: (a) made for the taxing
district to pay interest or principal on general obligation
bonds that were approved by referendum; (b) made for any
taxing district to pay interest or principal on general
obligation bonds issued before the effective date of this
amendatory Act of 1997; (c) made for any taxing district to
pay interest or principal on bonds issued to refund or
continue to refund those bonds issued before the effective
date of this amendatory Act of 1997; (d) made for any taxing
district to pay interest or principal on bonds issued to
refund or continue to refund bonds issued after the effective
date of this amendatory Act of 1997 if the bonds were
approved by referendum after the effective date of this
amendatory Act of 1997; (e) made for any taxing district to
pay interest or principal on revenue bonds issued before the
effective date of this amendatory Act of 1997 for payment of
which a property tax levy or the full faith and credit of the
unit of local government is pledged; however, a tax for the
payment of interest or principal on those bonds shall be made
only after the governing body of the unit of local government
finds that all other sources for payment are insufficient to
make those payments; (f) made for payments under a building
commission lease when the lease payments are for the
retirement of bonds issued by the commission before the
effective date of this amendatory Act of 1997 to pay for the
building project; (g) made for payments due under installment
contracts entered into before the effective date of this
amendatory Act of 1997; (h) made for payments of principal
and interest on limited bonds, as defined in Section 3 of the
Local Government Debt Reform Act, in an amount not to exceed
the debt service extension base less the amount in items (b),
(c), and (e) of this definition for non-referendum
obligations, except obligations initially issued pursuant to
referendum; (i) made for payments of principal and interest
on bonds issued under Section 15 of the Local Government Debt
Reform Act; and (j) made for a qualified airport authority to
pay interest or principal on general obligation bonds issued
for the purpose of paying obligations due under, or financing
airport facilities required to be acquired, constructed,
installed or equipped pursuant to, contracts entered into
before March 1, 1996 (but not including any amendments to
such a contract taking effect on or after that date).
"Debt service extension base" means an amount equal to
that portion of the extension for a taxing district for the
1994 levy year, or for those taxing districts subject to this
Law in accordance with Section 18-213, except for those
subject to paragraph (2) of subsection (e) of Section 18-213,
for the levy year in which the referendum making this Law
applicable to the taxing district is held, or for those
taxing districts subject to this Law in accordance with
paragraph (2) of subsection (e) of Section 18-213 for the
1996 levy year, constituting an extension for payment of
principal and interest on bonds issued by the taxing district
without referendum, but not including (i) bonds authorized by
Public Act 88-503 and issued under Section 20a of the Chicago
Park District Act for aquarium and museum projects; (ii)
bonds issued under Section 15 of the Local Government Debt
Reform Act; or (iii) refunding obligations issued to refund
or to continue to refund obligations initially issued
pursuant to referendum. The debt service extension base may
be established or increased as provided under Section 18-212.
"Special purpose extensions" include, but are not limited
to, extensions for levies made on an annual basis for
unemployment and workers' compensation, self-insurance,
contributions to pension plans, and extensions made pursuant
to Section 6-601 of the Illinois Highway Code for a road
district's permanent road fund whether levied annually or
not. The extension for a special service area is not
included in the aggregate extension.
"Aggregate extension base" means the taxing district's
last preceding aggregate extension as adjusted under Sections
18-215 through 18-230.
"Levy year" has the same meaning as "year" under Section
1-155.
"New property" means (i) the assessed value, after final
board of review or board of appeals action, of new
improvements or additions to existing improvements on any
parcel of real property that increase the assessed value of
that real property during the levy year multiplied by the
equalization factor issued by the Department under Section
17-30 and (ii) the assessed value, after final board of
review or board of appeals action, of real property not
exempt from real estate taxation, which real property was
exempt from real estate taxation for any portion of the
immediately preceding levy year, multiplied by the
equalization factor issued by the Department under Section
17-30.
"Qualified airport authority" means an airport authority
organized under the Airport Authorities Act and located in a
county bordering on the State of Wisconsin and having a
population in excess of 200,000 and not greater than 500,000.
"Recovered tax increment value" means the amount of the
current year's equalized assessed value, in the first year
after a municipality terminates the designation of an area as
a redevelopment project area previously established under the
Tax Increment Allocation Development Act in the Illinois
Municipal Code, previously established under the Industrial
Jobs Recovery Law in the Illinois Municipal Code, or
previously established under the Economic Development Area
Tax Increment Allocation Act, of each taxable lot, block,
tract, or parcel of real property in the redevelopment
project area over and above the initial equalized assessed
value of each property in the redevelopment project area.
Except as otherwise provided in this Section, "limiting
rate" means a fraction the numerator of which is the last
preceding aggregate extension base times an amount equal to
one plus the extension limitation defined in this Section and
the denominator of which is the current year's equalized
assessed value of all real property in the territory under
the jurisdiction of the taxing district during the prior levy
year. For those taxing districts that reduced their
aggregate extension for the last preceding levy year, the
highest aggregate extension in any of the last 3 preceding
levy years shall be used for the purpose of computing the
limiting rate. The denominator shall not include new
property. The denominator shall not include the recovered
tax increment value.
(Source: P.A. 88-455; 89-1, eff. 2-12-95; 89-138, eff.
7-14-95; 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449,
eff. 6-1-96; 89-510, eff. 7-11-96; 89-718, eff. 3-7-97.)
Section 2. The Illinois Pension Code is amended by
changing Sections 1-113, 5-152.1, 7-132, 7-171, 8-138,
8-150.1, 8-154, 8-159, 8-226, 11-134, 11-145.1, 11-149,
11-154, 11-215, 14-103.04, 14-104, 15-106, 15-112, 15-113.2,
15-113.3, 15-113.4, 15-113.5, 15-113.7, 15-125, 15-136.2,
15-143, 15-153.2, 15-157, 15-167.2, 15-185, 15-190, 15-191,
16-140, and 16-163 and adding Sections 8-138.3, 9-121.15,
9-220.1, 11-133.2, 14-104.10, 14-105.7, and 15-168.1 as
follows:
(40 ILCS 5/1-113) (from Ch. 108 1/2, par. 1-113)
Sec. 1-113. Investment authority. The investment
authority of a board of trustees of a retirement system or
pension fund established under this Code shall, if so
provided in the Article establishing such retirement system
or pension fund, embrace the following investments:
(1) Bonds, notes and other direct obligations of the
United States Government; bonds, notes and other obligations
of any United States Government agency or instrumentality,
whether or not guaranteed; and obligations the principal and
interest of which are guaranteed unconditionally by the
United States Government or by an agency or instrumentality
thereof.
(2) Obligations of the Inter-American Development Bank,
the International Bank for Reconstruction and Development,
the African Development Bank, the International Finance
Corporation, and the Asian Development Bank.
(3) Obligations of any state, or of any political
subdivision in Illinois, or of any county or city in any
other state having a population as shown by the last federal
census of not less than 30,000 inhabitants provided that such
political subdivision is not permitted by law to become
indebted in excess of 10% of the assessed valuation of
property therein and has not defaulted for a period longer
than 30 days in the payment of interest and principal on any
of its general obligations or indebtedness during a period of
10 calendar years immediately preceding such investment.
(4) Nonconvertible bonds, debentures, notes and other
corporate obligations of any corporation created or existing
under the laws of the United States or any state, district or
territory thereof, provided there has been no default on the
obligations of the corporation or its predecessor(s) during
the 5 calendar years immediately preceding the purchase. Up
to 5% of the assets of a pension fund established under
Article 9 of this Code may be invested in nonconvertible
bonds, debentures, notes, and other corporate obligations of
corporations created or existing under the laws of a foreign
country, provided there has been no default on the
obligations of the corporation or its predecessors during the
5 calendar years immediately preceding the date of purchase.
(5) Obligations guaranteed by the Government of Canada,
or by any Province of Canada, or by any Canadian city with a
population of not less than 150,000 inhabitants, provided (a)
they are payable in United States currency and are exempt
from any Canadian withholding tax; (b) the investment in any
one issue of bonds shall not exceed 10% of the amount
outstanding; and (c) the total investments at book value in
Canadian securities shall be limited to 5% of the total
investment account of the board at book value.
(5.1) Direct obligations of the State of Israel for the
payment of money, or obligations for the payment of money
which are guaranteed as to the payment of principal and
interest by the State of Israel, or common or preferred stock
or notes issued by a bank owned or controlled in whole or in
part by the State of Israel, on the following conditions:
(a) The total investments in such obligations shall
not exceed 5% of the book value of the aggregate
investments owned by the board;
(b) The State of Israel shall not be in default in
the payment of principal or interest on any of its direct
general obligations on the date of such investment;
(c) The bonds, stock or notes, and interest thereon
shall be payable in currency of the United States;
(d) The bonds shall (1) contain an option for the
redemption thereof after 90 days from date of purchase or
(2) either become due 5 years from the date of their
purchase or be subject to redemption 120 days after the
date of notice for redemption;
(e) The investment in these obligations has been
approved in writing by investment counsel employed by the
board, which counsel shall be a national or state bank or
trust company authorized to do a trust business in the
State of Illinois, or an investment advisor qualified
under the Federal Investment Advisors Act of 1940 and
registered under the Illinois Securities Act of 1953;
(f) The fund or system making the investment shall
have at least $5,000,000 of net present assets.
(6) Notes secured by mortgages under Sections 203, 207,
220 and 221 of the National Housing Act which are insured by
the Federal Housing Commissioner, or his successor assigns,
or debentures issued by such Commissioner, which are
guaranteed as to principal and interest by the Federal
Housing Administration, or agency of the United States
Government, provided the aggregate investment shall not
exceed 20% of the total investment account of the board at
book value, and provided further that the investment in such
notes under Sections 220 and 221 shall in no event exceed
one-half of the maximum investment in notes under this
paragraph.
(7) Loans to veterans guaranteed in whole or part by the
United States Government pursuant to Title III of the Act of
Congress known as the "Servicemen's Readjustment Act of
1944," 58 Stat. 284, 38 U.S.C. 693, as amended or
supplemented from time to time, provided such guaranteed
loans are liens upon real estate.
(8) Common and preferred stocks and convertible debt
securities authorized for investment of trust funds under the
laws of the State of Illinois, provided:
(a) the common stocks, except as provided in
subparagraph (h), are listed on a national securities
exchange as defined in the Federal Securities Exchange
Act, or quoted in the National Association of Securities
Dealers Automated Quotation System (NASDAQ);
(b) the securities are of a corporation created or
existing under the laws of the United States or any
state, district or territory thereof, except that up to
5% of the assets of a pension fund established under
Article 9 of this Code may be invested in securities
issued by corporations created or existing under the laws
of a foreign country, if those securities are otherwise
in conformance with this paragraph (8);
(c) the corporation is not in arrears on payment of
dividends on its preferred stock;
(d) the total book value of all stocks and
convertible debt owned by any pension fund or retirement
system shall not exceed 40% of the aggregate book value
of all investments of such pension fund or retirement
system, except for a pension fund or retirement that
system governed by Article 9 or 17, where the total of
all stocks and convertible debt shall not exceed 50% of
the aggregate book value of all fund investments;
(e) the book value of stock and convertible debt
investments in any one corporation shall not exceed 5% of
the total investment account at book value in which such
securities are held, determined as of the date of the
investment, and the investments in the stock of any one
corporation shall not exceed 5% of the total outstanding
stock of such corporation, and the investments in the
convertible debt of any one corporation shall not exceed
5% of the total amount of such debt that may be
outstanding;
(f) the straight preferred stocks or convertible
preferred stocks and convertible debt securities are
issued or guaranteed by a corporation whose common stock
qualifies for investment by the board; and
(g) that any common stocks not listed or quoted as
provided in subdivision 8(a) above be limited to the
following types of institutions: (a) any bank which is a
member of the Federal Deposit Insurance Corporation
having capital funds represented by capital stock,
surplus and undivided profits of at least $20,000,000;
(b) any life insurance company having capital funds
represented by capital stock, special surplus funds and
unassigned surplus totalling at least $50,000,000; and
(c) any fire or casualty insurance company, or a
combination thereof, having capital funds represented by
capital stock, net surplus and voluntary reserves of at
least $50,000,000.
(9) Withdrawable accounts of State chartered and federal
chartered savings and loan associations insured by the
Federal Savings and Loan Insurance Corporation; deposits or
certificates of deposit in State and national banks insured
by the Federal Deposit Insurance Corporation; and share
accounts or share certificate accounts in a State or federal
credit union, the accounts of which are insured as required
by The Illinois Credit Union Act or the Federal Credit Union
Act, as applicable.
No bank or savings and loan association shall receive
investment funds as permitted by this subsection (9), unless
it has complied with the requirements established pursuant to
Section 6 of the Public Funds Investment Act.
(10) Trading, purchase or sale of listed options on
underlying securities owned by the board.
(11) Contracts and agreements supplemental thereto
providing for investments in the general account of a life
insurance company authorized to do business in Illinois.
(12) Conventional mortgage pass-through securities which
are evidenced by interests in Illinois owner-occupied
residential mortgages, having not less than an "A" rating
from at least one national securities rating service. Such
mortgages may have loan-to-value ratios up to 95%, provided
that any amount over 80% is insured by private mortgage
insurance. The pool of such mortgages shall be insured by
mortgage guaranty or equivalent insurance, in accordance with
industry standards.
(13) Pooled or commingled funds managed by a national or
State bank which is authorized to do a trust business in the
State of Illinois, shares of registered investment companies
as defined in the federal Investment Company Act of 1940
which are registered under that Act, and separate accounts of
a life insurance company authorized to do business in
Illinois, where such pooled or commingled funds, shares, or
separate accounts are comprised of common or preferred
stocks, bonds, or money market instruments.
(14) Pooled or commingled funds managed by a national or
state bank which is authorized to do a trust business in the
State of Illinois, separate accounts managed by a life
insurance company authorized to do business in Illinois, and
commingled group trusts managed by an investment adviser
registered under the federal Investment Advisors Act of 1940
(15 U.S.C. 80b-1 et seq.) and under the Illinois Securities
Law of 1953, where such pooled or commingled funds, separate
accounts or commingled group trusts are comprised of real
estate or loans upon real estate secured by first or second
mortgages. The total investment in such pooled or commingled
funds, commingled group trusts and separate accounts shall
not exceed 10% of the aggregate book value of all investments
owned by the fund.
(15) Investment companies which (a) are registered as
such under the Investment Company Act of 1940, (b) are
diversified, open-end management investment companies and (c)
invest only in money market instruments.
(16) Up to 10% of the assets of the fund may be invested
in investments not included in paragraphs (1) through (15) of
this Section, provided that such investments comply with the
requirements and restrictions set forth in Sections 1-109,
1-109.1, 1-109.2, 1-110 and 1-111 of this Code.
The board shall have the authority to enter into such
agreements and to execute such documents as it determines to
be necessary to complete any investment transaction.
Any limitations herein set forth shall be applicable only
at the time of purchase and shall not require the liquidation
of any investment at any time.
All investments shall be clearly held and accounted for
to indicate ownership by such board. Such board may direct
the registration of securities in its own name or in the name
of a nominee created for the express purpose of registration
of securities by a national or state bank or trust company
authorized to conduct a trust business in the State of
Illinois.
Investments shall be carried at cost or at a book value
determined in accordance with generally accepted accounting
principles and accounting procedures approved by such board.
No adjustments shall be made in investment carrying values
for ordinary current market price fluctuations; but reserves
may be provided to account for possible losses or unrealized
gains as determined by such board.
The book value of investments held by any pension fund or
retirement system in one or more commingled investment
accounts shall be the cost of its units of participation in
such commingled account or accounts as recorded on the books
of such board.
(Source: P.A. 86-272; 87-575; 87-794; 87-895.)
(40 ILCS 5/5-152.1)
Sec. 5-152.1. Parent's annuity.
(a) A parent's annuity shall be provided for the natural
parent or parents of a policeman who dies on or after the
effective date of this amendatory Act of 1996 while (i) in
active service, (ii) disabled and in receipt of or pending
receipt of a disability benefit, (iii) on leave of absence
with whole or part pay, (iv) on leave of absence without pay
during a period of not more than 3 months in the aggregate,
(v) in receipt of annuity granted after 20 years of service,
or (vi) out of the service after 20 years of service and
pending receipt of annuity to which the policeman has a right
upon attainment of age 50 or more. However, the parent's
annuity is payable only if there is no surviving spouse or
child entitled to an annuity as a result of the policeman's
death, and satisfactory proof is submitted to the board that
the policeman was contributing to the support of the parent
or parents at the time of death.
(b) Beginning July 1, 1997, a parent's annuity shall be
available to the natural parent or parents of a policeman who
died before August 9, 1996 while (i) in active service, (ii)
disabled and in receipt of or pending receipt of a disability
benefit, (iii) on leave of absence with whole or part pay,
(iv) on leave of absence without pay during a period of not
more than 3 months in the aggregate, (v) in receipt of
annuity granted after 20 years of service, or (vi) out of the
service after 20 years of service and pending receipt of
annuity to which the policeman has a right upon attainment of
age 50 or more. However, the parent's annuity is payable
only if there is no surviving spouse or child entitled to an
annuity as a result of the policeman's death, and
satisfactory proof is submitted to the board that the
policeman was contributing to the support of the parent or
parents at the time of death. The parent's annuity shall
begin no earlier than the first day of the month following
the month in which the application for parent's annuity is
received by the Fund.
(c) The parent's annuity shall be 18% of the current
annual salary attached to the classified position held by the
policeman at the time of death or withdrawal from service for
each eligible surviving parent, payable on a monthly basis.
(Source: P.A. 89-643, eff. 8-9-96.)
(40 ILCS 5/7-132) (from Ch. 108 1/2, par. 7-132)
Sec. 7-132. Municipalities, instrumentalities and
participating instrumentalities included and effective dates.
(A) Municipalities and their instrumentalities.
(a) The following described municipalities, but not
including any with more than 1,000,000 inhabitants, and the
instrumentalities thereof, shall be included within and be
subject to this Article beginning upon the effective dates
specified by the Board:
(1) Except as to the municipalities and
instrumentalities thereof specifically excluded under
this Article, every county shall be subject to this
Article, and all cities, villages and incorporated towns
having a population in excess of 5,000 inhabitants as
determined by the last preceding decennial or subsequent
federal census, shall be subject to this Article
following publication of the census by the Bureau of the
Census. Within 90 days after publication of the census,
the Board shall notify any municipality that has become
subject to this Article as a result of that census, and
shall provide information to the corporate authorities of
the municipality explaining the duties and consequences
of participation. The notification shall also include a
proposed date upon which participation by the
municipality will commence.
However, for any city, village or incorporated town
that attains a population over 5,000 inhabitants after
having provided social security coverage for its
employees under the Social Security Enabling Act,
participation under this Article shall not be mandatory
but may be elected in accordance with subparagraph (3) or
(4) of this paragraph (a), whichever is applicable.
(2) School districts, other than those specifically
excluded under this Article, shall be subject to this
Article, without election, with respect to all employees
thereof.
(3) Towns and all other bodies politic and
corporate which are formed by vote of, or are subject to
control by, the electors in towns and are located in
towns which are not participating municipalities on the
effective date of this Act, may become subject to this
Article by election pursuant to Section 7-132.1.
(4) Any other municipality (together with its
instrumentalities), other than those specifically
excluded from participation and those described in
paragraph (3) above, may elect to be included either by
referendum under Section 7-134 or by the adoption of a
resolution or ordinance by its governing body. A copy of
such resolution or ordinance duly authenticated and
certified by the clerk of the municipality or other
appropriate official of its governing body shall
constitute the required notice to the board of such
action.
(b) A municipality that is about to begin participation
shall submit to the Board an application to participate, in a
form acceptable to the Board, not later than 90 days prior to
the proposed effective date of participation. The Board
shall act upon the application within 90 days, and if it
finds that the application is in conformity with its
requirements and the requirements of this Article,
participation by the applicant shall commence on a date
acceptable to the municipality and specified by the Board,
but in no event more than one year from the date of
application.
(c) A participating municipality which succeeds to the
functions of a participating municipality which is dissolved
or terminates its existence shall assume and be transferred
the net accumulation balance in the municipality reserve and
the municipality account receivable balance of the terminated
municipality.
(d) In the case of a Veterans Assistance Commission
whose employees were being treated by the Fund on January 1,
1990 as employees of the county served by the Commission, the
Fund may continue to treat the employees of the Veterans
Assistance Commission as county employees for the purposes of
this Article, unless the Commission becomes a participating
instrumentality in accordance with subsection (B) of this
Section.
(B) Participating instrumentalities.
(a) The participating instrumentalities designated in
paragraph (b) of this subsection shall be included within and
be subject to this Article if:
(1) an application to participate, in a form
acceptable to the Board and adopted by a two-thirds vote
of the governing body, is presented to the Board not
later than 90 days prior to the proposed effective date;
and
(2) the Board finds that the application is in
conformity with its requirements, that the applicant has
reasonable expectation to continue as a political entity
for a period of at least 10 years and has the prospective
financial capacity to meet its current and future
obligations to the Fund, and that the actuarial soundness
of the Fund may be reasonably expected to be unimpaired
by approval of participation by the applicant.
The Board shall notify the applicant of its findings
within 90 days after receiving the application, and if the
Board approves the application, participation by the
applicant shall commence on the effective date specified by
the Board.
(b) The following participating instrumentalities, so
long as they meet the requirements of Section 7-108 and the
area served by them or within their jurisdiction is not
located entirely within a municipality having more than one
million inhabitants, may be included hereunder:
i. Township School District Trustees.
ii. Multiple County and Consolidated Health
Departments created under Division 5-25 of the Counties
Code or its predecessor law.
iii. Public Building Commissions created under the
Public Building Commission Act, and located in counties
of less than 1,000,000 inhabitants.
iv. A multitype, consolidated or cooperative
library system created under the Illinois Library System
Act. Any library system created under the Illinois
Library System Act that has one or more predecessors that
participated in the Fund may participate in the Fund upon
application. The Board shall establish procedures for
implementing the transfer of rights and obligations from
the predecessor system to the successor system.
v. Regional Planning Commissions created under
Division 5-14 of the Counties Code or its predecessor
law.
vi. Local Public Housing Authorities created under
the Housing Authorities Act, located in counties of less
than 1,000,000 inhabitants.
vii. Illinois Municipal League.
viii. Northeastern Illinois Metropolitan Area
Planning Commission.
ix. Southwestern Illinois Metropolitan Area
Planning Commission.
x. Illinois Association of Park Districts.
xi. Illinois Supervisors, County Commissioners and
Superintendents of Highways Association.
xii. Tri-City Regional Port District.
xiii. An association, or not-for-profit
corporation, membership in which is authorized under
Section 85-15 of the Township Code.
xiv. Drainage Districts operating under the
Illinois Drainage Code.
xv. Local mass transit districts created under the
Local Mass Transit District Act.
xvi. Soil and water conservation districts created
under the Soil and Water Conservation Districts Law.
xvii. Commissions created to provide water supply
or sewer services or both under Division 135 or Division
136 of Article 11 of the Illinois Municipal Code.
xviii. Public water districts created under the
Public Water District Act.
xix. Veterans Assistance Commissions established
under Section 9 of the Military Veterans Assistance Act
that serve counties with a population of less than
1,000,000.
xx. The governing body of an entity, other than a
vocational education cooperative, created under an
intergovernmental cooperative agreement established
between participating municipalities under the
Intergovernmental Cooperation Act, which by the terms of
the agreement is the employer of the persons performing
services under the agreement under the usual common law
rules determining the employer-employee relationship.
The governing body of such an intergovernmental
cooperative entity established prior to July 1, 1988 may
make participation retroactive to the effective date of
the agreement and, if so, the effective date of
participation shall be the date the required application
is filed with the fund. If any such entity is unable to
pay the required employer contributions to the fund, then
the participating municipalities shall make payment of
the required contributions and the payments shall be
allocated as provided in the agreement or, if not so
provided, equally among them.
xxi. The Illinois Municipal Electric Agency.
xxii. The Waukegan Port District.
xxiii. The Fox Waterway Agency created under the
Fox Waterway Agency Act.
(c) The governing boards of special education joint
agreements created under Section 10-22.31 of the School Code
without designation of an administrative district, shall be
included within and be subject to this Article as
participating instrumentalities when the joint agreement
becomes effective. However, the governing board of any such
special education joint agreement in effect before September
5, 1975 shall not be subject to this Article unless the joint
agreement is modified by the school districts to provide that
the governing board is subject to this Article, except as
otherwise provided by this Section.
The governing board of the Special Education District of
Lake County shall become subject to this Article as a
participating instrumentality on July 1, 1997.
Notwithstanding subdivision (a)1 of Section 7-139, on the
effective date of participation, employees of the governing
board of the Special Education District of Lake County shall
receive creditable service for their prior service with that
employer, up to a maximum of 5 years, without any employee
contribution. Employees may establish creditable service for
the remainder of their prior service with that employer, if
any, by applying in writing and paying 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 must be made before July 1, 1998; the
payment may be made at any time while the employee is still
in service. The employer may elect to make the required
contribution on behalf of the employee.
The governing board of a special education joint
agreement created under Section 10-22.31 of the School Code
for which an administrative district has been designated, if
there are employees of the cooperative educational entity who
are not employees of the administrative district, may elect
to participate in the Fund and be included within this
Article as a participating instrumentality, subject to such
application procedures and rules as the Board may prescribe.
The Boards of Control of cooperative or joint educational
programs or projects created and administered under Section
3-15.14 of the School Code, whether or not the Boards act as
their own administrative district, shall be included within
and be subject to this Article as participating
instrumentalities when the agreement establishing the
cooperative or joint educational program or project becomes
effective.
The governing board of a special education joint
agreement entered into after June 30, 1984 and prior to
September 17, 1985 which provides for representation on the
governing board by less than all the participating districts
shall be included within and subject to this Article as a
participating instrumentality. Such participation shall be
effective as of the date the joint agreement becomes
effective.
The governing boards of educational service centers
established under Section 2-3.62 of the School Code shall be
included within and subject to this Article as participating
instrumentalities. The governing boards of vocational
education cooperative agreements created under the
Intergovernmental Cooperation Act and approved by the State
Board of Education shall be included within and be subject to
this Article as participating instrumentalities. If any such
governing boards or boards of control are unable to pay the
required employer contributions to the fund, then the school
districts served by such boards shall make payment of
required contributions as provided in Section 7-172. The
payments shall be allocated among the several school
districts in proportion to the number of students in average
daily attendance for the last full school year for each
district in relation to the total number of students in
average attendance for such period for all districts served.
If such educational service centers, vocational education
cooperatives or cooperative or joint educational programs or
projects created and administered under Section 3-15.14 of
the School Code are dissolved, the assets and obligations
shall be distributed among the districts in the same
proportions unless otherwise provided.
(d) The governing boards of special recreation joint
agreements created under Section 8-10b of the Park District
Code, operating without designation of an administrative
district or an administrative municipality appointed to
administer the program operating under the authority of such
joint agreement shall be included within and be subject to
this Article as participating instrumentalities when the
joint agreement becomes effective. However, the governing
board of any such special recreation joint agreement in
effect before January 1, 1980 shall not be subject to this
Article unless the joint agreement is modified, by the
districts and municipalities which are parties to the
agreement, to provide that the governing board is subject to
this Article.
If the Board returns any employer and employee
contributions to any employer which erroneously submitted
such contributions on behalf of a special recreation joint
agreement, the Board shall include interest computed from the
end of each year to the date of payment, not compounded, at
the rate of 7% per annum.
(e) Each multi-township assessment district, the board
of trustees of which has adopted this Article by ordinance
prior to April 1, 1982, shall be a participating
instrumentality included within and subject to this Article
effective December 1, 1981. The contributions required under
Section 7-172 shall be included in the budget prepared under
and allocated in accordance with Section 2-30 of the Property
Tax Code.
(f) Beginning January 1, 1992, each prospective
participating municipality or participating instrumentality
shall pay to the Fund the cost, as determined by the Board,
of a study prepared by the Fund or its actuary, detailing the
prospective costs of participation in the Fund to be expected
by the municipality or instrumentality.
(Source: P.A. 88-670, eff. 12-2-94, 89-162, eff. 7-19-95.)
(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 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 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.
(d-5) A school district participating in a special
education joint agreement created under Section 10-22.31 of
the School Code that is a participating instrumentality may
include in the school district's tax levy under this Section
an amount sufficient to provide its proportionate share of
the municipality contributions for current and prior service
by employees of the participating instrumentality created
under the joint agreement.
(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 consolidated educational
service region for its municipality contributions shall be
held by him for that purpose and paid to the region in the
same manner as other monies appropriated for the expense of
the region.
(Source: P.A. 89-329, eff. 8-17-95.)
(40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
Sec. 8-138. Minimum annuities - Additional provisions.
(a) An employee who withdraws after age 65 or more with
at least 20 years of service, for whom the amount of age and
service and prior service annuity combined is less than the
amount stated in this Section, shall from the date of
withdrawal, instead of all annuities otherwise provided, be
entitled to receive an annuity for life of $150 a year, plus
1 1/2% for each year of service, to and including 20 years,
and 1 2/3% for each year of service over 20 years, of his
highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal.
An employee who withdraws after 20 or more years of
service, before age 65, shall be entitled to such annuity, to
begin not earlier than upon attained age of 55 years if under
such age at withdrawal, reduced by 2% for each full year or
fractional part thereof that his attained age is less than
65, plus an additional 2% reduction for each full year or
fractional part thereof that his attained age when annuity is
to begin is less than 60 so that the total reduction at age
55 shall be 30%.
(b) An employee who withdraws after July 1, 1957, at age
60 or over, with 20 or more years of service, for whom the
age and service and prior service annuity combined, is less
than the amount stated in this paragraph, shall, from the
date of withdrawal, instead of such annuities, be entitled to
receive an annuity for life equal to 1 2/3% for each year of
service, of the highest average annual salary for any 5
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal; provided, that
in the case of any employee who withdraws on or after July 1,
1971, such employee age 60 or over with 20 or more years of
service, shall receive an annuity for life equal to 1.67% for
each of the first 10 years of service; 1.90% for each of the
next 10 years of service; 2.10% for each year of service in
excess of 20 but not exceeding 30; and 2.30% for each year of
service in excess of 30, based on the highest average annual
salary for any 4 consecutive years within the last 10 years
of service immediately preceding the date of withdrawal.
An employee who withdraws after July 1, 1957 and before
January 1, 1988, with 20 or more years of service, before age
60 years is entitled to annuity, to begin not earlier than
upon attained age of 55 years, if under such age at
withdrawal, as computed in the last preceding paragraph,
reduced 0.25% for each full month or fractional part thereof
that his attained age when annuity is to begin is less than
60 if the employee was born before January 1, 1936, or 0.5%
for each such month if the employee was born on or after
January 1, 1936.
Any employee born before January 1, 1936, who withdraws
with 20 or more years of service, and any employee with 20 or
more years of service who withdraws on or after January 1,
1988, may elect to receive, in lieu of any other employee
annuity provided in this Section, an annuity for life equal
to 1.80% for each of the first 10 years of service, 2.00% for
each of the next 10 years of service, 2.20% for each year of
service in excess of 20 but not exceeding 30, and 2.40% for
each year of service in excess of 30, of the highest average
annual salary for any 4 consecutive years within the last 10
years of service immediately preceding the date of
withdrawal, to begin not earlier than upon attained age of 55
years, if under such age at withdrawal, reduced 0.25% for
each full month or fractional part thereof that his attained
age when annuity is to begin is less than 60; except that an
employee retiring on or after January 1, 1988, at age 55 or
over but less than age 60, having at least 35 years of
service, or an employee retiring on or after July 1, 1990, at
age 55 or over but less than age 60, having at least 30 years
of service, or an employee retiring on or after the effective
date of this amendatory Act of 1997, at age 55 or over but
less than age 60, having at least 25 years of service, shall
not be subject to the reduction in retirement annuity because
of retirement below age 60.
However, in the case of an employee who retired on or
after January 1, 1985 but before January 1, 1988, at age 55
or older and with at least 35 years of service, and who was
subject under this subsection (b) to the reduction in
retirement annuity because of retirement below age 60, that
reduction shall cease to be effective January 1, 1991, and
the retirement annuity shall be recalculated accordingly.
Any employee who withdraws on or after July 1, 1990, with
20 or more years of service, may elect to receive, in lieu of
any other employee annuity provided in this Section, an
annuity for life equal to 2.20% for each year of service of
the highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal, to begin not earlier than upon attained
age of 55 years, if under such age at withdrawal, reduced
0.25% for each full month or fractional part thereof that his
attained age when annuity is to begin is less than 60; except
that an employee retiring at age 55 or over but less than age
60, having at least 30 years of service, shall not be subject
to the reduction in retirement annuity because of retirement
below age 60.
Any employee who withdraws on or after the effective date
of this amendatory Act of 1997 with 20 or more years of
service may elect to receive, in lieu of any other employee
annuity provided in this Section, an annuity for life equal
to 2.20%, for each year of service, of the highest average
annual salary for any 4 consecutive years within the last 10
years of service immediately preceding the date of
withdrawal, to begin not earlier than upon attainment of age
55 (age 50 if the employee has at least 30 years of service),
reduced 0.25% for each full month or remaining fractional
part thereof that the employee's attained age when annuity is
to begin is less than 60; except that an employee retiring at
age 50 or over with at least 30 years of service or at age 55
or over with at least 25 years of service shall not be
subject to the reduction in retirement annuity because of
retirement below age 60.
The maximum annuity payable under part (a) and (b) of
this Section shall not exceed 70% of highest average annual
salary in the case of an employee who withdraws prior to July
1, 1971, and 75% if withdrawal takes place on or after July
1, 1971. For the purpose of the minimum annuity provided in
this Section $1,500 is considered the minimum annual salary
for any year; and the maximum annual salary for the
computation of such annuity is $4,800 for any year before
1953, $6000 for the years 1953 to 1956, inclusive, and the
actual annual salary, as salary is defined in this Article,
for any year thereafter.
To preserve rights existing on December 31, 1959, for
participants and contributors on that date to the fund
created by the Court and Law Department Employees' Annuity
Act, who became participants in the fund provided for on
January 1, 1960, the maximum annual salary to be considered
for such persons for the years 1955 and 1956 is $7,500.
(c) For an employee receiving disability benefit, his
salary for annuity purposes under paragraphs (a) and (b) of
this Section, for all periods of disability benefit
subsequent to the year 1956, is the amount on which his
disability benefit was based.
(d) An employee with 20 or more years of service, whose
entire disability benefit credit period expires before
attainment of age 55 while still disabled for service, is
entitled upon withdrawal to the larger of (1) the minimum
annuity provided above, assuming he is then age 55, and
reducing such annuity to its actuarial equivalent as of his
attained age on such date or (2) the annuity provided from
his age and service and prior service annuity credits.
(e) The minimum annuity provisions do not apply to any
former municipal employee receiving an annuity from the fund
who re-enters service as a municipal employee, unless he
renders at least 3 years of additional service after the date
of re-entry.
(f) An employee in service on July 1, 1947, or who
became a contributor after July 1, 1947 and before attainment
of age 70, who withdraws after age 65, with less than 20
years of service for whom the annuity has been fixed under
this Article shall, instead of the annuity so fixed, receive
an annuity as follows:
Such amount as he could have received had the accumulated
amounts for annuity been improved with interest at the
effective rate to the date of his withdrawal, or to
attainment of age 70, whichever is earlier, and had the city
contributed to such earlier date for age and service annuity
the amount that it would have contributed had he been under
age 65, after the date his annuity was fixed in accordance
with this Article, and assuming his annuity were computed
from such accumulations as of his age on such earlier date.
The annuity so computed shall not exceed the annuity which
would be payable under the other provisions of this Section
if the employee was credited with 20 years of service and
would qualify for annuity thereunder.
(g) Instead of the annuity provided in this Article, an
employee having attained age 65 with at least 15 years of
service who withdraws from service on or after July 1, 1971
and whose annuity computed under other provisions of this
Article is less than the amount provided under this
paragraph, is entitled to a minimum annuity for life equal to
1% of the highest average annual salary, as salary is defined
and limited in this Section for any 4 consecutive years
within the last 10 years of service for each year of service,
plus the sum of $25 for each year of service. The annuity
shall not exceed 60% of such highest average annual salary.
(h) The minimum annuities provided under this Section
shall be paid in equal monthly installments.
(i) The amendatory provisions of part (b) and (g) of
this Section shall be effective July 1, 1971 and apply in the
case of every qualifying employee withdrawing on or after
July 1, 1971.
(j) The amendatory provisions of this amendatory Act of
1985 (P.A. 84-23) relating to the discount of annuity because
of retirement prior to attainment of age 60, and to the
retirement formula, for those born before January 1, 1936,
shall apply only to qualifying employees withdrawing on or
after July 18, 1985.
(k) Beginning on the effective date of this amendatory
Act of 1997 January 1, 1991, the minimum amount of employee's
annuity shall be $550 $350 per month for life for the
following classes of employees, without regard to the fact
that withdrawal occurred prior to the effective date of this
amendatory Act of 1997 January 1, 1991:
(1) any employee annuitant alive and receiving a
life annuity on the effective date of this amendatory Act
of 1997 January 1, 1991, except a reciprocal annuity;
(2) any employee annuitant alive and receiving a
term annuity on the effective date of this amendatory Act
of 1997 January 1, 1991, except a reciprocal annuity;
(3) any employee annuitant alive and receiving a
reciprocal annuity on the effective date of this
amendatory Act of 1997 January 1, 1991, whose service in
this fund is at least 5 years;
(4) any employee annuitant withdrawing after age 60
on or after the effective date of this amendatory Act of
1997 January 1, 1991, with at least 10 years of service
in this fund.
The increases granted under items (1), (2) and (3) of
this subsection (k) shall not be limited by any other Section
of this Act.
(Source: P.A. 85-964; 86-1488.)
(40 ILCS 5/8-138.3 new)
Sec. 8-138.3. Early retirement incentive.
(a) To be eligible for the benefits provided in this
Section, an employee must:
(1) be a current contributor to the Fund who, on
November 1, 1997, is (i) in active payroll status as an
employee or (ii) receiving ordinary or duty disability
benefits under Section 8-160 or 8-161;
(2) have not previously retired under this Article;
(3) file with the Board before June 1, 1998, a
written application requesting the benefits provided in
this Section;
(4) withdraw from service on or after December 31,
1997 and on or before June 30, 1998; and
(5) by the date of withdrawal: (i) have attained
age 55 with at least 10 years of creditable service in
this Fund and a total of at least 15 years of creditable
service in one or more of the participating systems under
the Retirement Systems Reciprocal Act, without including
any creditable service established under this Section; or
(ii) have attained age 50 with at least 10 years of
creditable service in this Fund and a total of at least
30 years of creditable service in one or more of the
participating systems under the Retirement Systems
Reciprocal Act, without including any creditable service
established under this Section.
A person is not eligible for the benefits provided in
this Section if the person (i) elects to receive the
alternative annuity for city officers under Section 8-243.2,
or (ii) elects to receive a retirement annuity calculated
under the alternative formula formerly set forth in Section
20-122.
(b) An eligible employee may establish up to 5 years of
creditable service under this Section, in increments of one
month, by making the contributions specified in subsection
(d). An eligible person must establish at least the amount
of creditable service necessary to bring his or her total
creditable service, including service in this Fund, service
established under this Section, and service in any of the
other participating systems under the Retirement Systems
Reciprocal Act, to a minimum of 20 years.
The creditable service under this Section may be used for
all purposes under this Article and the Retirement Systems
Reciprocal Act, except for the computation of average annual
salary and the determination of salary, earnings, or
compensation under this or any other Article of this Code.
(c) An eligible employee shall be entitled to have his
or her retirement annuity calculated in accordance with the
formula provided in Section 8-138, but with the following
exceptions:
(1) The annuity shall not be subject to reduction
because of withdrawal or commencement of the annuity
before attainment of age 60.
(2) The annuity shall be subject to a maximum of
80% of the employee's highest average annual salary for
any 4 consecutive years within the last 10 years of
service, rather than the 75% maximum otherwise provided
in Section 8-138.
(d) For each month of creditable service established
under this Section, the employee must pay to the Fund an
employee contribution, to be calculated by the Fund, equal to
4.25% of the member's monthly salary rate on November 1,
1997. The employee may elect to pay the entire contribution
before the retirement annuity commences, or to have it
deducted from the annuity over a period not longer than 24
months. If the retired employee dies before the contribution
has been paid in full, the unpaid installments may be
deducted from any annuity or other benefit payable to the
employee's survivors.
All employee contributions paid under this Section shall
be deemed contributions made by employees for annuity
purposes under Section 8-173, and shall be made and credited
to a special reserve, without interest. Employee
contributions paid under this Section may be refunded under
the same terms and conditions as are applicable to other
employee contributions for retirement annuity.
(e) Notwithstanding Section 8-165, an annuitant who
reenters service under this Article after receiving a
retirement annuity based on benefits provided under this
Section thereby forfeits the right to continue to receive
those benefits, and shall have his or her retirement annuity
recalculated at the appropriate time without the benefits
provided in this Section.
(40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
Sec. 8-150.1. Minimum annuities for widows. The widow
(otherwise eligible for widow's annuity under other Sections
of this Article 8) of an employee hereinafter described, who
retires from service or dies while in the service subsequent
to the effective date of this amendatory provision, and for
which widow the amount of widow's annuity and widow's prior
service annuity combined, fixed or provided for such widow
under other provisions of this Article is less than the
amount provided in this Section, shall, from and after the
date her otherwise provided annuity would begin, in lieu of
such otherwise provided widow's and widow's prior service
annuity, be entitled to the following indicated amount of
annuity:
(a) The widow of any employee who dies while in service
on or after the date on which he attains age 60 if the death
occurs before July 1, 1990, or on or after the date on which
he attains age 55 if the death occurs on or after July 1,
1990, with at least 20 years of service, or on or after the
date on which he attains age 50 if the death occurs on or
after the effective date of this amendatory Act of 1997 with
at least 30 years of service, shall be entitled to an annuity
equal to one-half of the amount of annuity which her deceased
husband would have been entitled to receive had he withdrawn
from the service on the day immediately preceding the date of
his death, conditional upon such widow having attained the
age of 60 or more years on such date if the death occurs
before July 1, 1990, or age 55 or more if the death occurs on
or after July 1, 1990. Except as provided in subsection (k),
this such amount of widow's annuity shall not, however,
exceed the sum of $500 a month if the employee's death in
service occurs before January 23, 1987. The widow's annuity
shall not be limited to a maximum dollar amount if the
employee's death in service occurs on or after January 23,
1987.
If the employee dies in service before July 1, 1990, and
if such widow of such described employee shall not be 60 or
more years of age on such date of death, the amount provided
in the immediately preceding paragraph for a widow 60 or more
years of age, shall, in the case of such younger widow, be
reduced by 0.25% for each month that her then attained age is
less than 60 years if the employee was born before January 1,
1936 or dies in service on or after January 1, 1988, or by
0.5% for each month that her then attained age is less than
60 years if the employee was born on or after July 1, 1936
and dies in service before January 1, 1988.
If the employee dies in service on or after July 1, 1990,
and if the widow of the employee has not attained age 55 on
or before the employee's date of death, the amount otherwise
provided in this subsection (a) shall be reduced by 0.25% for
each month that her then attained age is less than 55 years.
(b) The widow of any employee who dies subsequent to the
date of his retirement on annuity, and who so retired on or
after the date on which he attained the age of 60 or more
years if retirement occurs before July 1, 1990, or on or
after the date on which he attained age 55 if retirement
occurs on or after July 1, 1990, with at least 20 years of
service, or on or after the date on which he attained age 50
if the retirement occurs on or after the effective date of
this amendatory Act of 1997 with at least 30 years of
service, shall be entitled to an annuity equal to one-half of
the amount of annuity which her deceased husband received as
of the date of his retirement on annuity, conditional upon
such widow having attained the age of 60 or more years on the
date of her husband's retirement on annuity if retirement
occurs before July 1, 1990, or age 55 or more if retirement
occurs on or after July 1, 1990. Except as provided in
subsection (k), this such amount of widow's annuity shall
not, however, exceed the sum of $500 a month if the
employee's death occurs before January 23, 1987. The widow's
annuity shall not be limited to a maximum dollar amount if
the employee's death occurs on or after January 23, 1987,
regardless of the date of retirement; provided that, if
retirement was before January 23, 1987, the employee or
eligible spouse repays the excess spouse refund with interest
at the effective rate from the date of refund to the date of
repayment.
If the date of the employee's retirement on annuity is
before July 1, 1990, and if such widow of such described
employee shall not have attained such age of 60 or more years
on such date of her husband's retirement on annuity, the
amount provided in the immediately preceding paragraph for a
widow 60 or more years of age on the date of her husband's
retirement on annuity, shall, in the case of such then
younger widow, be reduced by 0.25% for each month that her
then attained age was less than 60 years if the employee was
born before January 1, 1936 or withdraws from service on or
after January 1, 1988, or by 0.5% for each month that her
then attained age is less than 60 years if the employee was
born on or after January 1, 1936 and withdraws from service
before January 1, 1988.
If the date of the employee's retirement on annuity is on
or after July 1, 1990, and if the widow of the employee has
not attained age 55 by the date of the employee's retirement
on annuity, the amount otherwise provided in this subsection
(b) shall be reduced by 0.25% for each month that her then
attained age is less than 55 years.
(c) The foregoing provisions relating to minimum
annuities for widows shall not apply to the widow of any
former municipal employee receiving an annuity from the fund
on August 9, 1965 or on the effective date of this amendatory
provision, who re-enters service as a municipal employee,
unless such employee renders at least 3 years of additional
service after the date of re-entry.
(d) In computing the amount of annuity which the husband
specified in the foregoing paragraphs (a) and (b) of this
Section would have been entitled to receive, or received,
such amount shall be the annuity to which such husband would
have been, or was entitled, before reduction in the amount of
his annuity for the purposes of the voluntary optional
reversionary annuity provided for in Sec. 8-139 of this
Article, if such option was elected.
(e) (Blank). The amendatory provisions of part (a) and
(b) of this Section (increasing the maximum from $300 to $400
a month) shall be effective as of July 1, 1971, and apply in
the case of every qualifying widow whose husband dies while
in service on or after July 1, 1971 or withdraws and enters
on annuity on or after July 1, 1971.
(f) (Blank). The amendments of part (a) and (b) of this
Section by this amendatory Act of 1983 (increasing the
maximum from $400 to $500 a month) shall be effective as of
January 1, 1984 and shall apply in the case of every
qualifying widow whose husband dies while in the service on
or after January 1, 1984, or withdraws and enters on annuity
on or after January 1, 1984.
(g) The amendatory provisions of this amendatory Act of
1985 relating to annuity discount because of age for widows
of employees born before January 1, 1936, shall apply only to
qualifying widows of employees withdrawing or dying in
service on or after July 18, 1985.
(h) Beginning on the effective date of this amendatory
Act of 1997 January 1, 1991, the minimum amount of widow's
annuity shall be $500 $300 per month for life for the
following classes of widows, without regard to the fact that
the death of the employee occurred prior to the effective
date of this amendatory Act of 1997 January 1, 1991:
(1) any widow annuitant alive and receiving a life
annuity on the effective date of this amendatory Act of
1997 January 1, 1991, except a reciprocal annuity;
(2) any widow annuitant alive and receiving a term
annuity on the effective date of this amendatory Act of
1997 January 1, 1991, except a reciprocal annuity;
(3) any widow annuitant alive and receiving a
reciprocal annuity on the effective date of this
amendatory Act of 1997 January 1, 1991, whose employee
spouse's service in this fund was at least 5 years;
(4) the widow of an employee with at least 10 years
of service in this fund who dies after retirement, if the
retirement occurred prior to the effective date of this
amendatory Act of 1997 January 1, 1991;
(5) the widow of an employee with at least 10 years
of service in this fund who dies after retirement, if
withdrawal occurs on or after the effective date of this
amendatory Act of 1997 January 1, 1991;
(6) the widow of an employee who dies in service
with at least 5 years of service in this fund, if the
death in service occurs on or after the effective date of
this amendatory Act of 1997 January 1, 1991.
The increases granted under items (1), (2), (3) and (4)
of this subsection (h) shall not be limited by any other
Section of this Act.
(i) The widow of an employee who retired or died in
service on or after January 1, 1985 and before July 1, 1990,
at age 55 or older, and with at least 35 years of service
credit, shall be entitled to have her widow's annuity
increased, effective January 1, 1991, to an amount equal to
50% of the retirement annuity that the deceased employee
received on the date of retirement, or would have been
eligible to receive if he had retired on the day preceding
the date of his death in service, provided that if the widow
had not attained age 60 by the date of the employee's
retirement or death in service, the amount of the annuity
shall be reduced by 0.25% for each month that her then
attained age was less than age 60 if the employee's
retirement or death in service occurred on or after January
1, 1988, or by 0.5% for each month that her attained age is
less than age 60 if the employee's retirement or death in
service occurred prior to January 1, 1988. However, in cases
where a refund of excess contributions for widow's annuity
has been paid by the Fund, the increase in benefit provided
by this subsection (i) shall be contingent upon repayment of
the refund to the Fund with interest at the effective rate
from the date of refund to the date of payment.
(j) If a deceased employee is receiving a retirement
annuity at the time of death and that death occurs on or
after the effective date of this amendatory Act of 1997, the
widow may elect to receive, in lieu of any other annuity
provided under this Article, 50% of the deceased employee's
retirement annuity at the time of death reduced by 0.25% for
each month that the widow's age on the date of death is less
than 55. However, in cases where a refund of excess
contributions for widow's annuity has been paid by the Fund,
the benefit provided by this subsection (j) is contingent
upon repayment of the refund to the Fund with interest at the
effective rate from the date of refund to the date of
payment.
(k) For widows of employees who died before January 23,
1987 after retirement on annuity or in service, the maximum
dollar amount limitation on widow's annuity shall cease to
apply, beginning with the first annuity payment after the
effective date of this amendatory Act of 1997; except that if
a refund of excess contributions for widow's annuity has been
paid by the Fund, the increase resulting from this subsection
(k) shall not begin before the refund has been repaid to the
Fund, together with interest at the effective rate from the
date of the refund to the date of repayment.
(Source: P.A. 85-964; 86-1488.)
(40 ILCS 5/8-154) (from Ch. 108 1/2, par. 8-154)
Sec. 8-154. Maximum annuities.
(1) The annuities to an employee and his widow, are
subject to the following limitations:
(a) No age and service annuity, or age and service and
prior service annuity combined, in excess of 60% of the
highest salary of an employee, and no minimum annuity in
excess of the amount provided in Section 8-138 or set forth
as a maximum in any other Section of this Code relating to
minimum annuities for municipal employees included under
Article 8 of this Code shall be payable to any employee -
excepting to the extent that the annuity may exceed such per
cent or amount under Section 8-137 and 8-137.1 providing for
automatic increases after retirement.
(b) No annuity in excess of 60% of such highest salary
shall be payable to a widow if death of an employee results
solely from injury incurred in the performance of an act of
duty; provided, the annuity for a widow, or a widow's annuity
plus compensation annuity, shall not exceed $500 per month if
the employee's death occurs before January 23, 1987, except
as provided in paragraph (d). The widow's annuity, or a
widow's annuity plus compensation annuity, shall not be
limited to a maximum dollar amount if the employee's death
occurs on or after January 23, 1987, regardless of the date
of injury.
(c) No annuity in excess of 50% of such highest salary
shall be payable to a widow in the case of death resulting in
whole or in part from any cause other than injury incurred in
the performance of an act of duty; provided, the annuity for
a widow, or a widow's annuity plus supplemental annuity,
shall not exceed $500 per month if the employee's death
occurs before January 23, 1987, except as provided in
paragraph (d). The widow's annuity, or widow's annuity plus
supplemental annuity, shall not be limited to a maximum
dollar amount if the employee's death occurs on or after
January 23, 1987.
(d) For widows of employees who died before January 23,
1987 after retirement on annuity or in service, the maximum
dollar amount limitation on widow's annuity (or widow's
annuity plus compensation or supplemental annuity) shall
cease to apply, beginning with the first annuity payment
after the effective date of this amendatory Act of 1997;
except that if a refund of excess contributions for widow's
annuity has been paid by the Fund, the increase resulting
from this paragraph (d) shall not begin before the refund has
been repaid to the Fund, together with interest at the
effective rate from the date of the refund to the date of
repayment.
(2) If when an employee's annuity is fixed, the amount
accumulated to his credit therefor, as of his age at such
time exceeds the amount necessary for the annuity, all
contributions for annuity purposes after the date on which
the accumulated sums to the credit of such employee for
annuity purposes would first have provided such employee with
such amount of annu