Public Act 90-0766 of the 90th General Assembly
Public Act 90-0766
HB3515 Enrolled LRB9011159EGfg
AN ACT in relation to public employee retirement
benefits, amending named Acts.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by
changing Sections 2-121, 2-123, 2-126, 2-126.1, 3-114.3,
3-114.4, 3-121, 5-156, 5-157, 5-167.4, 5-168, 5-172, 5-204,
6-128.4, 6-165, 7-146, 7-150, 7-159, 7-173.1, 7-173.2, 8-137,
8-137.1, 8-138, 8-139, 8-150.1, 8-158, 8-173, 8-244.1,
11-134, 11-134.1, 11-134.2, 11-134.3, 11-145.1, 11-153,
11-169, 11-181, 11-182, 11-183, 12-133.1, 12-166, 14-104,
14-104.10 (as added by P.A. 90-32), 14-133.1, 15-107, 15-135,
15-136, 15-136.4, 15-141, 15-142, 15-145, 15-146, 15-150,
15-153.2, 15-153.3, 15-154, 15-157, 15-158.2, 15-158.3,
15-165, 15-167, 18-129, and 18-133.1 and adding Sections
3-114.6, 8-230.7, 12-133.5, 15-103.1, 15-103.2, 15-103.3, and
15-134.5 as follows:
(40 ILCS 5/2-121) (from Ch. 108 1/2, par. 2-121)
Sec. 2-121. Survivor's annuity - conditions for payment.
(a) A survivor's annuity shall be payable to a surviving
spouse or eligible child (1) upon the death in service of a
participant with at least 2 years of service credit, or (2)
upon the death of an annuitant in receipt of a retirement
annuity, or (3) upon the death of a participant who
terminated service with at least 4 years of service credit.
The change in this subsection (a) made by this amendatory
Act of 1995 applies to survivors of participants who die on
or after December 1, 1994, without regard to whether or not
the participant was in service on or after the effective date
of this amendatory Act of 1995.
(b) To be eligible for the survivor's annuity, the
spouse and the participant or annuitant must have been
married for a continuous period of at least one year
immediately preceding the date of death, but need not have
been married on the day of the participant's last termination
of service, regardless of whether such termination occurred
prior to the effective date of this amendatory Act of 1985.
(c) The annuity shall be payable beginning on the date
of a participant's death, or the first of the month following
an annuitant's death, if the spouse is then age 50 or over,
or beginning at age 50 if the spouse is then under age 50.
If an eligible child or children of the participant or
annuitant (or a child or children of the eligible spouse
meeting the criteria of item (1), (2), or (3) of subsection
(d) of this Section) also survive, and the child or children
are under the care of the eligible spouse, the annuity shall
begin as of the date of a participant's death, or the first
of the month following an annuitant's death, without regard
to the spouse's age.
The change to this subsection made by this amendatory Act
of 1998 (relating to children of an eligible spouse) applies
to the eligible spouse of a participant or annuitant who dies
on or after the effective date of this amendatory Act,
without regard to whether the participant or annuitant is in
service on or after that effective date.
(d) For the purposes of this Section and Section
2-121.1, "eligible child" means a child of the deceased
participant or annuitant who is at least one of the
following:
(1) unmarried and under the age of 18;
(2) unmarried, a full-time student, and under the
age of 22;
(3) dependent by reason of physical or mental
disability.
The inclusion of unmarried students under age 22 in the
calculation of survivor's annuities by this amendatory Act of
1991 shall apply to all eligible students beginning January
1, 1992, without regard to whether the deceased participant
or annuitant was in service on or after the effective date of
this amendatory Act of 1991.
Adopted children shall have the same status as children
of the participant or annuitant, but only if the proceedings
for adoption are commenced at least one year prior to the
date of the participant's or annuitant's death.
(e) Remarriage of a surviving spouse prior to attainment
of age 55 shall disqualify the surviving spouse from the
receipt of a survivor's annuity.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/2-123) (from Ch. 108 1/2, par. 2-123)
Sec. 2-123. Refunds.
(a) A participant who ceases to be a member, other than
an annuitant, shall, upon written request, receive a refund
of his or her total contributions, without interest. The
refund shall include the additional contributions for the
automatic increase in retirement annuity. By accepting the
refund, a participant forfeits all accrued rights and
benefits in the System and loses credit for all service.
However, if he or she again becomes a member, he or she may
resume status as a participant and reestablish any forfeited
service credit by paying to the System the full amount
refunded, together with interest at 4% per annum from the
time the refund is paid to the date the member again becomes
a participant.
A former member of the General Assembly may reestablish
any service credit forfeited by acceptance of a refund by
paying to the System on or before February 1, 1993, the full
amount refunded, together with interest at 4% per annum from
the date of payment of the refund to the date of repayment.
When a member or former member owes money to the System,
interest at the rate of 4% per annum shall accrue and be
payable on such amounts owed beginning on the date of
termination of service as a member until the contributions
due have been paid in full.
(b) A participant who (1) has elected to cease making
contributions for survivor's annuity under subsection (b) of
Section 2-126, (2) has no eligible survivor's annuity
beneficiary survivor upon becoming an annuitant, or (3) who
terminates service with less than 8 years of service is
entitled to a refund of the contributions for a survivor's
annuity, without interest. If the such person later marries,
a survivor's annuity shall not be payable upon his or her
death, unless the amount of the such refund is repaid to the
System, together with interest at the rate of 4% per year
from the date of refund to the date of repayment.
(c) If at the date of retirement or death of a
participant who served as an officer of the General Assembly,
the total period of such service is less than 4 years, the
additional contributions made by such member on the
additional salary as an officer shall be refunded unless the
participant served as an officer for at least 2 years and has
contributed the amount he or she would have contributed if he
or she had served as an officer for 4 years as provided in
Section 2-126.
(d) Upon the termination of the last survivor's annuity
payable to a survivor of a deceased participant, the excess,
if any, of the total contributions made by the participant
for retirement and survivor's annuity, without interest, over
the total amount of retirement and survivor's annuity
payments received by the participant and the participant's
survivors shall be refunded upon request:
(i) if there was a surviving spouse of the deceased
participant who was eligible for a survivor's annuity, to
the designated beneficiary of that spouse or, if the
designated beneficiary is deceased or there is no
designated beneficiary, to that spouse's estate;
(ii) if there was no eligible surviving spouse of
the deceased participant, to the designated beneficiary
of the deceased participant or, if the designated
beneficiary is deceased or there is no designated
beneficiary, to the deceased participant's estate.
(e) Upon the death of a participant, if a survivor's
annuity is not payable under this Article, a beneficiary
designated by the participant shall be entitled to a refund
of all contributions made by the participant. If the
participant has not designated a refund beneficiary, the
surviving spouse shall be entitled to the refund of
contributions; if there is no surviving spouse, the
contributions shall be refunded to the participant's
surviving children, if any, and if no children survive, the
refund payment shall be made to the participant's estate.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
Sec. 2-126. Contributions by participants.
(a) Each participant shall contribute toward the cost of
his or her retirement annuity a percentage of each payment of
salary received by him or her for service as a member as
follows: for service between October 31, 1947 and January 1,
1959, 5%; for service between January 1, 1959 and June 30,
1969, 6%; for service between July 1, 1969 and January 10,
1973, 6 1/2%; for service after January 10, 1973, 7%; for
service after December 31, 1981, 8 1/2%.
(b) Beginning August 2, 1949, each male participant, and
from July 1, 1971, each female participant shall contribute
towards the cost of the survivor's annuity 2% of salary.
A participant who has no eligible survivor's annuity
beneficiary may elect to cease making contributions for
survivor's annuity under this subsection. A survivor's
annuity shall not be payable upon the death of a person who
has made this election, unless prior to that death the
election has been revoked and the amount of the contributions
that would have been paid under this subsection in the
absence of the election is paid to the System, together with
interest at the rate of 4% per year from the date the
contributions would have been made to the date of payment.
(c) Beginning July 1, 1967, each participant shall
contribute 1% of salary towards the cost of automatic
increase in annuity provided in Section 2-119.1. These
contributions shall be made concurrently with contributions
for retirement annuity purposes.
(d) In addition, each participant serving as an officer
of the General Assembly shall contribute, for the same
purposes and at the same rates as are required of a regular
participant, on each additional payment received as an
officer. If the participant serves as an officer for at
least 2 but less than 4 years, he or she shall contribute an
amount equal to the amount that would have been contributed
had the participant served as an officer for 4 years.
Persons who serve as officers in the 87th General Assembly
but cannot receive the additional payment to officers because
of the ban on increases in salary during their terms may
nonetheless make contributions based on those additional
payments for the purpose of having the additional payments
included in their highest salary for annuity purposes;
however, persons electing to make these additional
contributions must also pay an amount representing the
corresponding employer contributions, as calculated by the
System.
(Source: P.A. 86-273; 87-1265.)
(40 ILCS 5/2-126.1) (from Ch. 108 1/2, par. 2-126.1)
Sec. 2-126.1. Pickup of contributions.
(a) The State shall pick up the participant
contributions required under Section 2-126 for all salary
earned after December 31, 1981. The contributions so picked
up shall be treated as employer contributions in determining
tax treatment under the United States Internal Revenue Code.
The State shall pay these participant contributions from the
same source of funds which is used in paying salary to the
participant. The State may pick up these contributions by a
reduction in the cash salary of the participant. If
participant contributions are picked up they shall be treated
for all purposes of this Article 2 in the same manner as
participant contributions that were made prior to the date
that the pick up of contributions began.
(b) Subject to the requirements of federal law, a
participant may elect to have the employer pick up optional
contributions that the participant has elected to pay to the
System, and the contributions so picked up shall be treated
as employer contributions for the purposes of determining
federal tax treatment. The employer shall pick up the
contributions by a reduction in the cash salary of the
participant and shall pay the contributions from the same
fund that is used to pay earnings to the participant. The
election to have optional contributions picked up is
irrevocable and the optional contributions may not thereafter
be prepaid, by direct payment or otherwise. If the provision
authorizing the optional contribution requires payment by a
stated date (rather than the date of withdrawal or
retirement), that requirement shall be deemed to have been
satisfied if (i) on or before the stated date the participant
executes a valid irrevocable election to have the
contributions picked up under this subsection, and (ii) the
picked-up contributions are in fact paid to the System as
provided in the election.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/3-114.3) (from Ch. 108 1/2, par. 3-114.3)
Sec. 3-114.3. Heart attack suffered in performance of
duties. Any police officer who suffers a heart attack as a
result of the performance and discharge of police duty shall
be considered as having been injured in the performance of an
act of duty and shall be eligible for the benefits provided
under this Article for police officers injured in the
performance of an act of duty or, if applicable, the benefits
provided in Section 3-114.6.
(Source: P.A. 83-1440.)
(40 ILCS 5/3-114.4) (from Ch. 108 1/2, par. 3-114.4)
Sec. 3-114.4. Return to active duty after disability. A
police officer who receives a disability pension under
Section Sections 3-114.1, or 3-114.2, or 3-114.6 for more
than 2 years and who returns to active duty must remain in
active police service for at least 5 years before becoming
eligible for a disability pension greater than the pension
paid for the prior disability.
(Source: P.A. 83-1440.)
(40 ILCS 5/3-114.6 new)
Sec. 3-114.6. Occupational disease disability pension.
(a) This Section applies only to police officers who are
employed by a municipality with a combined police and fire
department and who have regular firefighting duties in
addition to their law enforcement duties.
(b) The General Assembly finds that service in a police
department that also has firefighting duties requires
officers to perform unusual tasks in times of stress and
danger; that officers are subject to exposure to extreme heat
or extreme cold in certain seasons while performing their
duties; that they are required to work in the midst of and
are subject to heavy smoke fumes and carcinogenic, poisonous,
toxic, or chemical gases from fires; and that these
conditions exist and arise out of or in the course of
employment.
(c) An active officer with 5 or more years of creditable
service who is found to be unable to perform his or her
duties in the department by reason of heart disease,
tuberculosis, or any disease of the lungs or respiratory
tract, resulting from service as an officer, is entitled to
an occupational disease disability pension during any period
of such disability for which he or she has no right to
receive salary.
An active officer who has completed 5 or more years of
service and is unable to perform his or her duties in the
department by reason of a disabling cancer, which develops or
manifests itself during a period while the officer is in the
service of the department, is entitled to receive an
occupational disease disability benefit during any period of
such disability for which he or she does not have a right to
receive salary. In order to receive this occupational
disease disability benefit, the cancer must be of a type that
may be caused by exposure to heat, radiation, or a known
carcinogen as defined by the International Agency for
Research on Cancer.
An officer who, after the effective date of this
amendatory Act of 1998, enters the service of a combined
police and fire department and has regular firefighting
duties shall be examined by one or more practicing physicians
appointed by the board. If the examination discloses
impairment of the heart, lungs, or respiratory tract, or the
existence of cancer, the officer shall not be entitled to an
occupational disease disability pension under this Section
unless and until a subsequent examination reveals no such
impairment or cancer.
The occupational disease disability pension shall be 65%
of the salary attached to the rank held by the officer at the
time of his or her removal from the municipality's department
payroll.
The occupational disease disability pension is payable to
the officer during the period of the disability. If the
disability ceases before the death of the officer, the
disability pension payable under this Section shall also
cease and the officer thereafter shall receive such pension
benefits as are provided in accordance with other provisions
of this Article.
If an officer dies while still disabled and receiving a
disability pension under this Section, the disability pension
shall continue to be paid to the officer's survivors in the
sequence provided in Section 3-112.
(40 ILCS 5/3-121) (from Ch. 108 1/2, par. 3-121)
Sec. 3-121. Marriage and remarriage. The pensions
provided in Sections 3-112, 3-114.1, and 3-114.2, and 3-114.6
shall not be paid to a child or dependent parent after
marriage or remarriage of the child or dependent parent
following the death of the police officer.
The pensions provided in Sections 3-112, 3-114.1 and
3-114.2 shall not be paid to a surviving spouse after
remarriage following the death of the police officer, if the
remarriage occurs (i) prior to January 1, 1974 or (ii) after
December 31, 1974 but before the effective date of this
amendatory Act of 1995. Remarriage on or after the effective
date of this amendatory Act of 1995 does not affect the
surviving spouse's eligibility for those pensions, regardless
of whether the deceased police officer was in service on or
after that effective date. A surviving spouse whose pension
was terminated due to remarriage during 1974, and who applies
for reinstatement of that pension before January 1, 1990,
shall be entitled to have the pension reinstated beginning on
January 1, 1990.
(Source: P.A. 89-408, eff. 11-15-95.)
(40 ILCS 5/5-156) (from Ch. 108 1/2, par. 5-156)
Sec. 5-156. Proof of duty or ordinary disability -
Physical examinations. Proof of duty, occupational disease,
or ordinary disability shall be furnished to the board by at
least one licensed and practicing physician appointed by the
board. In cases where the board requests an applicant to get
a second opinion, the applicant must select a physician from
a list of qualified licensed and practicing physicians who
specialize in the various medical areas related to duty
injuries and illnesses, as established by the board. The
board may require other evidence of disability. A disabled
policeman who receives a duty, occupational disease, or
ordinary disability benefit shall be examined at least once a
year by one or more physicians appointed by the board. When
the disability ceases, the board shall discontinue payment of
the benefit, and the policeman shall be returned to active
service.
(Source: P.A. 86-272.)
(40 ILCS 5/5-157) (from Ch. 108 1/2, par. 5-157)
Sec. 5-157. Administration of disability benefits.
If a policeman who is granted duty or ordinary disability
benefit refuses to submit to examination by a physician
appointed by the board, he shall have no further right to
receive the benefit.
A policeman who has withdrawn from service while disabled
and entered upon annuity prior to the effective date, and who
has thereafter been reinstated as a policeman, shall have no
right to ordinary disability benefit in excess of the amount
previously received unless he serves at least one year after
such reinstatement. This provision shall apply throughout
the duration of any disability incurred by the policeman
within one year after his reinstatement resulting from any
cause other than injury incurred in the performance of an act
of duty.
A policeman who assumes regular employment for
compensation, while in receipt of ordinary or duty disability
benefits, shall not be entitled to receive any amount of such
disability benefits which, when added to his compensation for
such employment during disability, would exceed 150% of the
rate of salary which would be paid to him if he were working
in his regularly appointed civil service position as a
policeman; or, from and after January 1, 1970, the rate of
salary on which his disability benefit is based. The changes
made to this Section by this amendatory Act of 1998 are not
limited to persons in service on or after the effective date
of this amendatory Act.
Disability benefit shall not be paid for any part of time
for which a disabled policeman shall receive any part of his
salary.
Except as herein otherwise provided, disability benefit
shall not be paid for any disability based upon or caused by
any mental or physical defect which the policeman had at the
time he entered the police service.
Disability benefit shall not be allowed to any policeman
who re-enters the public service in any capacity where his
salary is payable in whole or in part by taxes levied upon
taxable property in the city in which this Article is in
effect, or out of special revenues of any department of the
city. The disability benefit shall be suspended during the
period he is in the public service for compensation, and
shall be resumed when he withdraws from such service.
Any disability benefit paid in violation of this Section
or of this Article shall be construed to have been paid in
error, and the amounts so paid shall be charged as a debit in
the account of any person to whom the same was paid and shall
be deducted from any moneys thereafter payable to such person
out of this fund, or to the widow, heirs or estate of such
person.
(Source: P.A. 76-847.)
(40 ILCS 5/5-167.4) (from Ch. 108 1/2, par. 5-167.4)
Sec. 5-167.4. Widow annuitant minimum annuity.
(a) Notwithstanding any other provision of this Article,
beginning January 1, 1996, the minimum amount of widow's
annuity payable to any person who is entitled to receive a
widow's annuity under this Article is $700 per month, without
regard to whether the deceased policeman is in service on or
after the effective date of this amendatory Act of 1995.
Notwithstanding any other provision of this Article,
beginning January 1, 1999, the minimum amount of widow's
annuity payable to any person who is entitled to receive a
widow's annuity under this Article is $800 per month, without
regard to whether the deceased policeman is in service on or
after the effective date of this amendatory Act of 1998.
(b) Effective January 1, 1994, the minimum amount of
widow's annuity shall be $700 per month for the following
classes of widows, without regard to whether the deceased
policeman is in service on or after the effective date of
this amendatory Act of 1993: (1) the widow of a policeman who
dies in service with at least 10 years of service credit, or
who dies in service after June 30, 1981; and (2) the widow of
a policeman who withdraws from service with 20 or more years
of service credit and does not withdraw a refund, provided
that the widow is married to the policeman before he
withdraws from service.
(c) The city, in addition to the contributions otherwise
made by it under the other provisions of this Article, shall
make such contributions as are necessary for the minimum
widow's annuities provided under this Section in the manner
prescribed in Section 5-175.
(Source: P.A. 89-12, eff. 4-20-95.)
(40 ILCS 5/5-168) (from Ch. 108 1/2, par. 5-168)
Sec. 5-168. Financing.
(a) Except as expressly provided in this Section, the
city shall levy a tax annually upon all taxable property
therein for the purpose of providing revenue for the fund.
The tax shall be at a rate that will produce a sum which,
when added to the amounts deducted from the policemen's
salaries and the amounts deposited in accordance with
subsection (g), is sufficient for the purposes of the fund.
For the years 1968 and 1969, the city council shall levy
a tax annually at a rate on the dollar of the assessed
valuation of all taxable property that will produce, when
extended, not to exceed $9,700,000. Beginning with the year
1970 and each year thereafter the city council shall levy a
tax annually at a rate on the dollar of the assessed
valuation of all taxable property that will produce when
extended an amount not to exceed the total amount of
contributions by the policemen to the Fund made in the
calendar year 2 years before the year for which the
applicable annual tax is levied, multiplied by 1.40 for the
tax levy year 1970; by 1.50 for the year 1971; by 1.65 for
1972; by 1.85 for 1973; by 1.90 for 1974; by 1.97 for 1975
through 1981; by 2.00 for 1982 and for each year thereafter.
(b) The tax shall be levied and collected in like manner
with the general taxes of the city, and is in addition to all
other taxes which the city is now or may hereafter be
authorized to levy upon all taxable property therein, and is
exclusive of and in addition to the amount of tax the city is
now or may hereafter be authorized to levy for general
purposes under any law which may limit the amount of tax
which the city may levy for general purposes. The county
clerk of the county in which the city is located, in reducing
tax levies under Section 8-3-1 of the Illinois Municipal
Code, shall not consider the tax herein authorized as a part
of the general tax levy for city purposes, and shall not
include the tax in any limitation of the percent of the
assessed valuation upon which taxes are required to be
extended for the city.
(c) On or before January 10 of each year, the board
shall notify the city council of the requirement that the tax
herein authorized be levied by the city council for that
current year. The board shall compute the amounts necessary
for the purposes of this fund to be credited to the reserves
established and maintained within the fund; shall make an
annual determination of the amount of the required city
contributions; and shall certify the results thereof to the
city council.
As soon as any revenue derived from the tax is collected
it shall be paid to the city treasurer of the city and shall
be held by him for the benefit of the fund in accordance with
this Article.
(d) If the funds available are insufficient during any
year to meet the requirements of this Article, the city may
issue tax anticipation warrants against the tax levy for the
current fiscal year.
(e) The various sums, including interest, to be
contributed by the city, shall be taken from the revenue
derived from such tax or otherwise as expressly provided in
this Section. Any moneys of the city derived from any source
other than the tax herein authorized shall not be used for
any purpose of the fund nor the cost of administration
thereof, unless applied to make the deposit expressly
authorized in this Section or the additional city
contributions required under subsection (h).
(f) If it is not possible or practicable for the city to
make its contributions at the time that salary deductions are
made, the city shall make such contributions as soon as
possible thereafter, with interest thereon to the time it is
made.
(g) In lieu of levying all or a portion of the tax
required under this Section in any year, the city may deposit
with the city treasurer no later than March 1 of that year
for the benefit of the fund, to be held in accordance with
this Article, an amount that, together with the taxes levied
under this Section for that year, is not less than the amount
of the city contributions for that year as certified by the
board to the city council. The deposit may be derived from
any source legally available for that purpose, including, but
not limited to, the proceeds of city borrowings. The making
of a deposit shall satisfy fully the requirements of this
Section for that year to the extent of the amounts so
deposited. Amounts deposited under this subsection may be
used by the fund for any of the purposes for which the
proceeds of the tax levied under this Section may be used,
including the payment of any amount that is otherwise
required by this Article to be paid from the proceeds of that
tax.
(h) In addition to the contributions required under the
other provisions of this Article, by November 1 of the
following specified years, the city shall deposit with the
city treasurer for the benefit of the fund, to be held and
used in accordance with this Article, the following specified
amounts: $6,300,000 in 1999; $5,880,000 in 2000; $5,460,000
in 2001; $5,040,000 in 2002; $4,620,000 in 2003; $4,200,000
in 2004; $3,780,000 in 2005; $3,360,000 in 2006; $2,940,000
in 2007; $2,520,000 in 2008; $2,100,000 in 2009; $1,680,000
in 2010; $1,260,000 in 2011; $840,000 in 2012; and $420,000
in 2013.
The additional city contributions required under this
subsection are intended to decrease the unfunded liability of
the fund and shall not decrease the amount of the city
contributions required under the other provisions of this
Article. The additional city contributions made under this
subsection may be used by the fund for any of its lawful
purposes.
(Source: P.A. 89-12, eff. 4-20-95.)
(40 ILCS 5/5-172) (from Ch. 108 1/2, par. 5-172)
Sec. 5-172. Contributions by city for duty and
occupational disease disability benefits and supplemental
annuity. In lieu of salary deductions for annuity purposes,
the city shall contribute the required amounts for any period
during which a policeman receives a duty disability benefit
or occupational disease disability benefit. The
contributions shall be credited to the disabled policeman and
shall be regarded for all purposes hereof as sums deducted
from his salary.
The city shall also contribute all amounts ordinarily
contributed by it for annuity purposes for the policeman as
though he were in active discharge of his duties during such
disability.
To provide supplemental annuity, the city shall
contribute such equal sums annually, from the date of the
policeman's death, which if improved by interest will be
sufficient, when payment of compensation annuity ceases, to
provide supplemental annuity to the widow for life.
(Source: P.A. 81-1536.)
(40 ILCS 5/5-204) (from Ch. 108 1/2, par. 5-204)
Sec. 5-204. Duty disability reserve. Amounts contributed
by the city for duty disability benefit, occupational disease
disability benefit, child's disability benefit, and
compensation annuity shall be credited to this reserve, and
all such benefits and annuities shall be charged to it.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/6-128.4) (from Ch. 108 1/2, par. 6-128.4)
Sec. 6-128.4. Minimum widow's annuities.
(a) Notwithstanding any other provision of this Article,
beginning January 1, 1996, the minimum amount of widow's
annuity payable to any person who is entitled to receive a
widow's annuity under this Article is $700 per month, without
regard to whether the deceased fireman is in service on or
after the effective date of this amendatory Act of 1995.
(b) Notwithstanding Section 6-128.3, beginning January
1, 1994, the minimum widow's annuity under this Article shall
be $700 per month for (1) all persons receiving widow's
annuities on that date who are survivors of employees who
retired at age 50 or over with at least 20 years of service,
and (2) persons who become eligible for widow's annuities and
are survivors of employees who retired at age 50 or over with
at least 20 years of service.
(c) Notwithstanding Section 6-128.3, beginning January
1, 1999, the minimum widow's annuity under this Article shall
be $800 per month for (1) all persons receiving widow's
annuities on that date who are survivors of employees who
retired at age 50 or over with at least 20 years of service,
and (2) persons who become eligible for widow's annuities and
are survivors of employees who retired at age 50 or over with
at least 20 years of service.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/6-165) (from Ch. 108 1/2, par. 6-165)
Sec. 6-165. Financing; tax.
(a) Except as expressly provided in this Section, each
city shall levy a tax annually upon all taxable property
therein for the purpose of providing revenue for the fund.
For the years prior to the year 1960, the tax rate shall be
as provided for in the "Firemen's Annuity and Benefit Fund of
the Illinois Municipal Code". The tax, from and after
January 1, 1968 to and including the year 1971, shall not
exceed .0863% of the value, as equalized or assessed by the
Department of Revenue, of all taxable property in the city.
Beginning with the year 1972 and each year thereafter the
city shall levy a tax annually at a rate on the dollar of the
value, as equalized or assessed by the Department of Revenue
of all taxable property within such city that will produce,
when extended, not to exceed an amount equal to the total
amount of contributions by the employees to the fund made in
the calendar year 2 years prior to the year for which the
annual applicable tax is levied, multiplied by 2.23 through
the calendar year 1981, and by 2.26 for the year 1982 and for
each year thereafter.
To provide revenue for the ordinary death benefit
established by Section 6-150 of this Article, in addition to
the contributions by the firemen for this purpose, the city
council shall for the year 1962 and each year thereafter
annually levy a tax, which shall be in addition to and
exclusive of the taxes authorized to be levied under the
foregoing provisions of this Section, upon all taxable
property in the city, as equalized or assessed by the
Department of Revenue, at such rate per cent of the value of
such property as shall be sufficient to produce for each year
the sum of $142,000.
The amounts produced by the taxes levied annually,
together with the deposit expressly authorized in this
Section, shall be sufficient, when added to the amounts
deducted from the salaries of firemen and applied to the
fund, to provide for the purposes of the fund.
(b) The taxes shall be levied and collected in like
manner with the general taxes of the city, and shall be in
addition to all other taxes which the city may levy upon all
taxable property therein and shall be exclusive of and in
addition to the amount of tax the city may levy 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 city may
levy for general purposes.
(c) The amounts of the taxes to be levied in each year
shall be certified to the city council by the board.
(d) As soon as any revenue derived from such taxes is
collected, it shall be paid to the city treasurer and held
for the benefit of the fund, and all such revenue shall be
paid into the fund in accordance with the provisions of this
Article.
(e) If the funds available are insufficient during any
year to meet the requirements of this Article, the city may
issue tax anticipation warrants, against the tax levies
herein authorized for the current fiscal year.
(f) The various sums, hereinafter stated, including
interest, to be contributed by the city, shall be taken from
the revenue derived from the taxes or otherwise as expressly
provided in this Section. Except for defraying the cost of
administration of the fund during the calendar year in which
a city first attains a population of 500,000 and comes under
the provisions of this Article and the first calendar year
thereafter, any money of the city derived from any source
other than these taxes or the sale of tax anticipation
warrants shall not be used to provide revenue for the fund,
nor to pay any part of the cost of administration thereof,
unless applied to make the deposit expressly authorized in
this Section or the additional city contributions required
under subsection (h).
(g) In lieu of levying all or a portion of the tax
required under this Section in any year, the city may deposit
with the city treasurer no later than March 1 of that year
for the benefit of the fund, to be held in accordance with
this Article, an amount that, together with the taxes levied
under this Section for that year, is not less than the amount
of the city contributions for that year as certified by the
board to the city council. The deposit may be derived from
any source legally available for that purpose, including, but
not limited to, the proceeds of city borrowings. The making
of a deposit shall satisfy fully the requirements of this
Section for that year to the extent of the amounts so
deposited. Amounts deposited under this subsection may be
used by the fund for any of the purposes for which the
proceeds of the taxes levied under this Section may be used,
including the payment of any amount that is otherwise
required by this Article to be paid from the proceeds of
those taxes.
(h) In addition to the contributions required under the
other provisions of this Article, by November 1 of the
following specified years, the city shall deposit with the
city treasurer for the benefit of the fund, to be held and
used in accordance with this Article, the following specified
amounts: $6,300,000 in 1999; $5,880,000 in 2000; $5,460,000
in 2001; $5,040,000 in 2002; $4,620,000 in 2003; $4,200,000
in 2004; $3,780,000 in 2005; $3,360,000 in 2006; $2,940,000
in 2007; $2,520,000 in 2008; $2,100,000 in 2009; $1,680,000
in 2010; $1,260,000 in 2011; $840,000 in 2012; and $420,000
in 2013.
The additional city contributions required under this
subsection are intended to decrease the unfunded liability of
the fund and shall not decrease the amount of the city
contributions required under the other provisions of this
Article. The additional city contributions made under this
subsection may be used by the fund for any of its lawful
purposes.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/7-146) (from Ch. 108 1/2, par. 7-146)
Sec. 7-146. Temporary disability benefits - Eligibility.
Temporary disability benefits shall be payable to
participating employees as hereinafter provided.
(a) The participating employee shall be considered
temporarily disabled if:
1. He is unable to perform the duties of any position
which might reasonably be assigned to him by his employing
municipality or instrumentality thereof or participating
instrumentality due to mental or physical disability caused
by bodily injury or disease, other than as a result of
self-inflicted injury or addiction to narcotic drugs;
2. The Board has received written certifications from at
least 1 licensed and practicing physician and the governing
body of the employing municipality or instrumentality thereof
or participating instrumentality stating that the employee
meets the conditions set forth in subparagraph 1 of this
paragraph (a).
(b) A temporary disability benefit shall be payable to a
temporarily disabled employee provided:
1. He:
(i) has at least one 1 year of service immediately
preceding at the date the temporary disability was incurred
and has made contributions to the fund for at least the
number of months of service normally required in his position
during a 12-month period, or has at least 5 years of service
credit, the last year of which immediately precedes such
date; or
(ii) had qualified under clause (i) above, but had an
interruption in service with the same participating
municipality or participating instrumentality of not more
than 3 months in the 12 months preceding the date the
temporary disability was incurred and was not paid a
separation benefit; or
(iii) had qualified under clause (i) above, but had an
interruption after 20 or more years of creditable service,
was not paid a separation benefit, and returned to service
prior to the date the disability was incurred.
Item (iii) of this subdivision shall apply to all
employees whose disabilities were incurred on or after July
1, 1985, and any such employee who becomes eligible for a
disability benefit under item (iii) shall be entitled to
receive a lump sum payment of any accumulated disability
benefits which may accrue from the date the disability was
incurred until the effective date of this amendatory Act of
1987.
Periods of qualified leave granted in compliance with the
federal Family and Medical Leave Act shall be ignored for
purposes of determining the number of consecutive months of
employment under this subdivision (b)1.
2. He has been temporarily disabled for at least 30
days, except where a former temporary or permanent and total
disability has reoccurred within 6 months after the employee
has returned to service.
3. He is receiving no earnings from a participating
municipality or instrumentality thereof or participating
instrumentality, except as allowed under subsection (f) of
Section 7-152.
4. He has not refused to submit to a reasonable physical
examination by a physician appointed by the Board.
5. His disability is not the result of a mental or
physical condition which existed on the earliest date of
service from which he has uninterrupted service, including
prior service, at the date of his disability, provided that
this limitation shall not be applicable to a participating
employee who: (i) on the date of disability has 5 years of
creditable service, exclusive of creditable service for
periods of disability; or (ii) received no medical treatment
for the condition for the 3 years immediately prior to such
earliest date of service.
6. He is not separated from the service of the
participating municipality or instrumentality thereof or
participating instrumentality which employed him on the date
his temporary disability was incurred; for the purposes of
payment of temporary disability benefits, a participating
employee, whose employment relationship is terminated by his
employing municipality, shall be deemed not to be separated
from the service of his employing municipality or
participating instrumentality if he continues disabled by the
same condition and so long as he is otherwise entitled to
such disability benefit.
(Source: P.A. 86-272; 87-740.)
(40 ILCS 5/7-150) (from Ch. 108 1/2, par. 7-150)
Sec. 7-150. Total and permanent disability benefits -
Eligibility. Total and permanent disability benefits shall be
payable to participating employees as hereinafter provided,
including those employees receiving disability benefit on
July 1, 1962.
(a) A participating employee shall be considered totally
and permanently disabled if:
1. He is unable to engage in any gainful activity
because of any medically determinable physical or mental
impairment which can be expected to result in death or be of
a long continued and indefinite duration, other than as a
result of self-inflicted injury or addiction to narcotic
drugs;
2. The Board has received a written certification by at
least 1 licensed and practicing physician stating that the
employee meets the qualifications of subparagraph 1 of this
paragraph (a).
(b) A totally and permanently disabled employee is
entitled to a permanent disability benefit provided:
1. He has exhausted his temporary disability benefits.
2. He:
(i) has at least one year of service immediately
preceding the date the disability was incurred and has made
contributions to the fund for at least the number of months
of service normally required in his position during a 12
month period, or has at least 5 years of service credit, the
last year of which immediately preceded the date the
disability was incurred; or
(ii) had qualified under clause (i) above, but had an
interruption in service with the same participating
municipality or participating instrumentality of not more
than 3 months in the 12 months preceding the date the
temporary disability was incurred and was not paid a
separation benefit; or
(iii) had qualified under clause (i) above, but had an
interruption after 20 or more years of creditable service,
was not paid a separation benefit, and returned to service
prior to the date the disability was incurred.
Item (iii) of this subdivision shall apply to all
employees whose disabilities were incurred on or after July
1, 1985, and any such employee who becomes eligible for a
disability benefit under item (iii) shall be entitled to
receive a lump sum payment of any accumulated disability
benefits which may accrue from the date the disability was
incurred until the effective date of this amendatory Act of
1987.
Periods of qualified leave granted in compliance with the
federal Family and Medical Leave Act shall be ignored for
purposes of determining the number of consecutive months of
employment under this subdivision (b)2.
3. He is receiving no earnings from a participating
municipality or instrumentality thereof or participating
instrumentality, except as allowed under subsection (f) of
Section 7-152.
4. He has not refused to submit to a reasonable physical
examination by a physician appointed by the Board.
5. His disability is not the result of a mental or
physical condition which existed on the earliest date of
service from which he has uninterrupted service, including
prior service, at the date of his disability, provided that
this limitation shall not be applicable to a participating
employee who, without receiving a disability benefit,
receives 5 years of creditable service.
6. He is not separated from the service of his employing
participating municipality or instrumentality thereof or
participating instrumentality on the date his temporary
disability was incurred; for the purposes of payment of total
and permanent disability benefits, a participating employee,
whose employment relationship is terminated by his employing
municipality, shall be deemed not to be separated from the
service of his employing municipality or participating
instrumentality if he continues disabled by the same
condition and so long as he is otherwise entitled to such
disability benefit.
7. He has not refused to apply for a disability benefit
under the Federal Social Security Act at the request of the
Board.
(c) A participating employee shall remain eligible and
may make application for a total and permanent disability
benefit within 90 days after the termination of his temporary
disability benefits or within such longer period terminating
at the end of the period during which his employing
municipality is prevented from employing him by reason of any
statutory prohibition.
(Source: P.A. 86-272; 87-740.)
(40 ILCS 5/7-159) (from Ch. 108 1/2, par. 7-159)
Sec. 7-159. Surviving spouse annuity - refund of survivor
credits.
(a) Any employee annuitant who (1) upon the date a
retirement annuity begins is not then married, or (2) is
married to a person who would not qualify for surviving
spouse annuity if the person died on such date, is entitled
to a refund of the survivor credits including interest
accumulated on the date the annuity begins, excluding
survivor credits and interest thereon credited during periods
of disability, and no spouse shall have a right to any
surviving spouse annuity from this Fund. If the employee
annuitant reenters service and upon subsequent retirement has
a spouse who would qualify for a surviving spouse annuity,
the employee annuitant may pay the fund the amount of the
refund plus interest at the effective rate at the date of
payment. The payment shall qualify the spouse for a
surviving spouse annuity and the amount paid shall be
considered as survivor contributions.
(b) Instead of a refund under subsection (a), the
retiring employee may elect to convert the amount of the
refund into an annuity, payable separately from the
retirement annuity. If the annuitant dies before the
guaranteed amount has been distributed, the remainder shall
be paid in a lump sum to the designated beneficiary of the
annuitant. The Board shall adopt any rules necessary for the
implementation of this subsection.
(Source: P. A. 77-2121.)
(40 ILCS 5/7-173.1) (from Ch. 108 1/2, par. 7-173.1)
Sec. 7-173.1. Additional contribution by sheriff's law
enforcement employees.
(a) Each sheriff's law enforcement employee shall make
an additional contribution of 1% of earnings, which shall be
considered as normal contributions. For earnings on or after
July 1, 1988, the additional contribution shall be 2% of
earnings.
This additional contribution shall be payable for
retroactive service periods which the employee elects to
establish and to periods of authorized leave of absence.
(b) If the employee is awarded a retirement annuity
under Section 7-142 and not under Section 7-142.1, then the
additional contribution required under this Section shall be
refunded with interest or paid as provided in subsection (c).
If the employee returns to a participating status as a
sheriff's law enforcement employee, the employee may repay
the amount refunded with interest and upon subsequent
retirement be entitled to a recomputation of the retirement
annuity under Section 7-142.1 if the total service as a
sheriff's law enforcement employee meets the requirements of
that Section.
(c) Instead of a refund under subsection (b), the
retiring employee may elect to convert the amount of the
refund into an annuity, payable separately from the
retirement annuity. If the annuitant dies before the
guaranteed amount has been distributed, the remainder shall
be paid in a lump sum to the designated beneficiary of the
annuitant. The Board shall adopt any rules necessary for the
implementation of this subsection.
(Source: P.A. 85-941.)
(40 ILCS 5/7-173.2) (from Ch. 108 1/2, par. 7-173.2)
Sec. 7-173.2. Pickup of employee contributions.
(a) Until July 1, 1984, each participating municipality
and each participating instrumentality may elect, for all of
its employees, to pick up the employee contributions required
by subparagraphs 1 and 3 of subsection (a) of Section 7-173
and, in the case of sheriff's law enforcement employees,
required by Section 7-173.1. The pick up may be for employee
contributions on earnings received by employees after
December 31, 1981 and shall be applicable to the
contributions on total earnings paid in any month. The
decision to pick up contributions shall be made by the
governing body.
Beginning July 1, 1984, the pick up of employee
contributions shall cease to be optional. Each participating
municipality and participating instrumentality shall pick up
the employee contributions required by subparagraphs 1 and 3
of subsection (a) of Section 7-173 and, in the case of
sheriff's law enforcement employees, contributions required
by Section 7-173.1, for all compensation earned after such
date.
(b) Contributions that are picked up shall be treated as
employer contributions in determining tax treatment under the
United States Internal Revenue Code. The employee
contribution shall be paid from the same source of funds as
is used in payment of earnings to the employee and may not be
paid from funds raised by the tax levy authorized by Section
7-171. The contributions shall be picked up by a reduction
in earnings payment to employees. Employee contributions
that are picked up shall be considered as earnings under
Section 7-114. The pick up shall not apply to contributions
made for additional contributions under subsection (a) 2 of
Section 7-173, authorized leave of absence under subsection
(a)4 of Section 7-139, out-of-state service under subsection
(a) 6 of Section 7-139, retroactive service under subsection
(a) 7 of Section 7-139 or repayments of separation of
benefits under Section 7-109. If a participating
municipality or participating instrumentality fails to report
participating employee earnings which should have been
reported to the fund and pays the employee the full amount of
earnings including employee contributions which should have
been picked up and forwarded to the fund, then the employee
shall make payment of the employee contributions to the fund
on behalf of employer and such contributions shall be
considered as picked up contributions if paid in the year the
earnings were received, or by January 31st of the following
year, and are reflected as picked up on reports to the
Internal Revenue Service. If they cannot be so reflected, or
if received after that date, they shall not be treated as
picked up contributions. Picked up employee contributions
shall be considered as employee contributions in computing
benefits paid under this Article 7.
(c) Subject to the requirements of federal law, an
employee may elect to have the employer pick up optional
contributions that the employee has elected to pay to the
Fund, and the contributions so picked up shall be treated as
employer contributions for the purposes of determining
federal tax treatment. The employer shall pick up the
contributions by a reduction in the cash salary of the
employee and shall pay the contributions from the same source
of funds that is used to pay earnings to the employee. The
employee's election to have the optional contributions picked
up is irrevocable and the optional contributions may not
thereafter be prepaid, by direct payment or otherwise.
(Source: P.A. 84-812.)
(40 ILCS 5/8-137) (from Ch. 108 1/2, par. 8-137)
Sec. 8-137. Automatic increase in annuity.
(a) An employee who retired or retires from service
after December 31, 1959 and before January 1, 1987, having
attained age 60 or more, shall, in January of the year after
the year in which the first anniversary of retirement occurs,
have the amount of his then fixed and payable monthly annuity
increased by 1 1/2%, and such first fixed annuity as granted
at retirement increased by a further 1 1/2% in January of
each year thereafter. Beginning with January of the year
1972, such increases shall be at the rate of 2% in lieu of
the aforesaid specified 1 1/2%, and beginning with January of
the year 1984 such increases shall be at the rate of 3%.
Beginning in January of 1999, such increases shall be at the
rate of 3% of the currently payable monthly annuity,
including any increases previously granted under this
Article. An such employee who retires on annuity after
December 31, 1959 and before January 1, 1987, but before age
60, shall receive such increases beginning in January of the
year after the year in which he attains age 60.
An employee who retires from service on or after January
1, 1987 shall, upon the first annuity payment date following
the first anniversary of the date of retirement, or upon the
first annuity payment date following attainment of age 60,
whichever occurs later, have his then fixed and payable
monthly annuity increased by 3%, and such annuity shall be
increased by an additional 3% of the original fixed annuity
on the same date each year thereafter. Beginning in January
of 1999, such increases shall be at the rate of 3% of the
currently payable monthly annuity, including any increases
previously granted under this Article.
(b) The foregoing provision is not applicable to an
employee retiring and receiving a term annuity, as herein
defined, nor to any otherwise qualified employee who retires
before he makes employee contributions (at the 1/2 of 1% rate
as provided in this Act) for this additional annuity for not
less than the equivalent of one full year. Such employee,
however, shall make arrangement to pay to the fund a balance
of such 1/2 of 1% contributions, based on his final salary,
as will bring such 1/2 of 1% contributions, computed without
interest, to the equivalent of or completion of one year's
contributions.
Beginning with January, 1960, each employee shall
contribute by means of salary deductions 1/2 of 1% of each
salary payment, concurrently with and in addition to the
employee contributions otherwise made for annuity purposes.
Each such additional contribution shall be credited to an
account in the prior service annuity reserve, to be used,
together with city contributions, to defray the cost of the
specified annuity increments. Any balance in such account at
the beginning of each calendar year shall be credited with
interest at the rate of 3% per annum.
Such additional employee contributions are not
refundable, except to an employee who withdraws and applies
for refund under this Article, and in cases where a term
annuity becomes payable. In such cases his contributions
shall be refunded, without interest, and charged to such
account in the prior service annuity reserve.
(Source: P.A. 84-1472.)
(40 ILCS 5/8-137.1) (from Ch. 108 1/2, par. 8-137.1)
Sec. 8-137.1. Automatic increases in annuity for certain
heretofore retired participants. A retired municipal
employee who (a) is receiving annuity based on a service
credit of 20 or more years regardless of age at retirement or
based on a service credit of 15 or more years with retirement
at age 55 or over, and (b) does not qualify for the automatic
increases in annuity provided for in Section 8-137 of this
Article, and (c) elects to make a contribution to the Fund at
a time and manner prescribed by the Retirement Board, of a
sum equal to 1% of the amount of final monthly salary times
the number of full years of service on which the annuity was
based in those cases where the annuity was computed on the
money purchase formula and in those cases in which the
annuity was computed under the minimum annuity formula
provisions of this Article a sum equal to 1% of the average
monthly salary on which the annuity was based times such
number of full years of service, shall have his original
fixed and payable monthly amount of annuity increased in
January of the year following the year in which he attains
the age of 65 years, if such age of 65 years is attained in
the year 1969 or later, by an amount equal to 1-1/2%, and by
an equal additional 1-1/2% in January of each year
thereafter. Beginning with January of the year 1972, such
increases shall be at the rate of 2% in lieu of the aforesaid
specified 1 1/2%, and beginning January of the year 1984 such
increases shall be at the rate of 3%. Beginning in January
of 1999, such increases shall be at the rate of 3% of the
currently payable monthly annuity, including any increases
previously granted under this Article.
Whenever the retired municipal employee receiving annuity
has attained the age of 66 or more in 1969, he shall have
such annuity increased in January, 1970 by an amount equal to
1-1/2% multiplied by the number equal to the number of months
of January elapsing from and including January of the year
immediately following the year he attained the age of 65 if
retired at or before age 65, or from and including January of
the year immediately following the year of retirement if
retired at an age greater than 65, to and including January,
1970, and by an equal additional 1-1/2% in January of each
year thereafter. Beginning with January of the year 1972,
such increases shall be at the rate of 2% in lieu of the
aforesaid specified 1 1/2%, and beginning January of the year
1984 such increases shall be at the rate of 3%. Beginning in
January of 1999, such increases shall be at the rate of 3% of
the currently payable monthly annuity, including any
increases previously granted under this Article.
To defray the annual cost of such increases, the annual
interest income of the Fund, accruing from investments held
by the Fund, exclusive of gains or losses on sales or
exchanges of assets during the year, over and above 4% a
year, shall be used to the extent necessary and available to
finance the cost of such increases for the following year,
and such amount shall be transferred as of the end of each
year, beginning with the year 1969, to a Fund account
designated as the Supplementary Payment Reserve from the
Investment and Interest Reserve set forth in Section 8-221.
The sums contributed by annuitants as provided for in this
Section shall also be placed in the aforesaid Supplementary
Payment Reserve and shall be applied and used for the
purposes of such Fund account, together with the aforesaid
interest.
In the event the monies in the Supplementary Payment
Reserve in any year arising from: (1) the available interest
income as defined hereinbefore and accruing in the preceding
year above 4% a year and (2) the contributions by retired
persons, as set forth hereinbefore, are insufficient to make
the total payments to all persons estimated to be entitled to
the annuity increases specified hereinbefore, then (3) any
interest earnings over 4% a year beginning with the year 1969
which were not previously used to finance such increases and
which were transferred to the Prior Service Annuity Reserve
may be used to the extent necessary and available to provide
sufficient funds to finance such increases for the current
year, and such sums shall be transferred from the Prior
Service Annuity Reserve.
In the event the total monies available in the
Supplementary Payment Reserve from the preceding indicated
sources are insufficient to make the total payments to all
persons entitled to such increases for the year, a
proportionate amount computed as the ratio of the monies
available to the total of the total payments for that year
shall be paid to each person for that year.
The Fund shall be obligated for the payment of the
increases in annuity as provided for in this Section only to
the extent that the assets for such purpose, as specified
herein, are available.
(Source: P.A. 83-802.)
(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.
(g-1) Instead of any other retirement annuity provided
in this Article, an employee who has at least 10 years of
service and withdraws from service on or after January 1,
1999 may elect to receive a retirement annuity for life,
beginning no earlier than upon attainment of age 60, equal to
2.2% of final average salary for each year of service,
subject to a maximum of 75% of final average salary. For the
purpose of calculating this annuity, "final average salary"
means the highest average annual salary for any 4 consecutive
years in the last 10 years of service.
(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 January 1, 1999 the effective date of
this amendatory Act of 1997, the minimum amount of employee's
annuity shall be $850 $550 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 1998 1997:
(1) any employee annuitant alive and receiving a
life annuity on the effective date of this amendatory Act
of 1998 1997, except a reciprocal annuity;
(2) any employee annuitant alive and receiving a
term annuity on the effective date of this amendatory Act
of 1998 1997, except a reciprocal annuity;
(3) any employee annuitant alive and receiving a
reciprocal annuity on the effective date of this
amendatory Act of 1998 1997, 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
1998 1997, 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. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
(40 ILCS 5/8-139) (from Ch. 108 1/2, par. 8-139)
Sec. 8-139. Reversionary annuity.
(a) An employee, prior to retirement on annuity, may
elect to take a lesser amount of annuity and provide, with
the actuarial value of the amount by which his annuity is
reduced, a reversionary annuity for a wife, husband, parent,
child, brother or sister. The option shall be exercised by
filing a written designation with the board prior to
retirement, and may be revoked by the employee at any time
before retirement. The death of the employee prior to his
retirement shall automatically void the option.
(b) The death of the designated reversionary annuitant
prior to the employee's retirement shall automatically void
the option. If the reversionary annuitant dies after the
employee's retirement, and before the death of the employee
annuitant, the reduced annuity being paid to the retired
employee annuitant shall be increased to the amount of
annuity before reduction for the reversionary annuity and no
reversionary annuity shall be payable.
The option is subject to the further condition that no
reversionary annuity shall be paid to a parent, child,
brother, or sister if the employee dies before the expiration
of 365 730 days from the date his written designation was
filed with the board, even though he has retired and is
receiving a reduced annuity.
(c) The employee exercising this option shall not reduce
his retirement annuity by more than $400 $200 a month, or
elect to provide a reversionary annuity of less than $50 per
month. No option shall be permitted if the reversionary
annuity for a widow, when added to the widow's annuity
payable under this Article, exceeds 100% 80% of the reduced
annuity payable to the employee.
(d) A reversionary annuity shall begin on the day
following the death of the annuitant and shall be paid as
provided in Section 8-125.
(e) The increases in annuity provided in Section 8-137
of this Article shall, as to an employee so electing a
reduced annuity relate to the amount of the original annuity,
and such amount shall constitute the annuity on which such
automatic increases shall be based.
(f) For annuities elected after June 30, 1983, the
amount of the monthly reversionary annuity shall be
determined by multiplying the amount of the monthly reduction
in the employee's annuity by the factor in the following
table based on the age of the employee and the difference in
the age of the employee and the age of the reversionary
annuitant at the starting date of the employee's annuity:
Employee's Age
Reversionary
Annuitant's Age 55-57 58-60 61-63 64-66 67-69 70 &
Over
30 or more years 2.18 1.84 1.55 1.29 1.08 0.91
younger
25-29 years younger 2.29 1.94 1.63 1.37 1.15 0.97
20-24 years younger 2.44 2.07 1.75 1.48 1.25 1.06
15-19 years younger 2.65 2.26 1.92 1.63 1.39 1.19
10-14 years younger 2.94 2.53 2.16 1.85 1.59 1.37
5-9 years younger 3.35 2.90 2.51 2.16 1.88 1.64
0-4 years younger 3.93 3.44 3.00 2.61 2.29 2.02
1-5 years older 4.76 4.21 3.71 3.26 2.88 2.56
6-10 years older 5.93 5.30 4.71 4.16 3.70 3.29
11-15 years older 7.58 6.83 6.11 5.40 4.82 4.32
16-20 years older 9.84 8.93 8.02 7.13 6.43 5.87
21-25 years older 12.91 11.82 10.73 9.66 8.88 8.35
26-30 years older 17.15 15.96 14.80 13.65 12.97 12.82
31 or more years 23.34 22.32 21.45 20.62 20.85 23.28
older
(Source: P.A. 90-31, eff. 6-27-97.)
(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, or age 50 or more if the death occurs
on or after January 1, 1998 and the employee is age 50 or
over with at least 30 years of service or age 55 or over with
at least 25 years of service. Except as provided in
subsection (k), this 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;
except that if the employee dies in service on or after
January 1, 1998 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, there shall be no reduction due to the widow's age
if she has attained age 50 on or before the employee's date
of death, and if the widow has not attained age 50 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 50 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, or age 50 or more if the
retirement on annuity occurs on or after January 1, 1998 and
the employee is age 50 or over with at least 30 years of
service or age 55 or over with at least 25 years of service.
Except as provided in subsection (k), this 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; except that if the
employee retires on annuity on or after January 1, 1998 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, there shall be no
reduction due to the widow's age if she has attained age 50
on or before the employee's date of death, and if the widow
has not attained age 50 on or before the employee's date of
death 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 50 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).
(f) (Blank).
(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 January 1, 1999 the effective date of
this amendatory Act of 1997, the minimum amount of widow's
annuity shall be $800 $500 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 1998 1997:
(1) any widow annuitant alive and receiving a life
annuity on the effective date of this amendatory Act of
1998 1997, except a reciprocal annuity;
(2) any widow annuitant alive and receiving a term
annuity on the effective date of this amendatory Act of
1998 1997, except a reciprocal annuity;
(3) any widow annuitant alive and receiving a
reciprocal annuity on the effective date of this
amendatory Act of 1998 1997, 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 1998 1997;
(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 1998 1997;
(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 1998 1997.
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 June 27, 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; except that if the employee dies on or
after January 1, 1998 and withdrew from service on or after
June 27, 1997 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, there shall be no reduction due to the widow's age
if she has attained age 50 on or before the employee's date
of death, and if the widow has not attained age 50 on or
before the employee's date of death the amount otherwise
provided in this subsection (j) shall be reduced by 0.25% for
each month that her age on the date of death is less than 50
years. 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. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
(40 ILCS 5/8-158) (from Ch. 108 1/2, par. 8-158)
Sec. 8-158. Child's annuity. A child's annuity is
payable monthly after the death of an employee parent to the
child until the child's attainment of age 18, under the
following conditions, if the child was born before the
employee attained age 65, and before he withdrew from
service:
(a) upon death resulting from injury incurred in
the performance of an act of duty;
(b) upon death in service from any cause other than
injury incurred in the performance of an act of duty, if
the employee has at least 4 years of service after the
date of his original entry into service, and at least 2
years after the date of his latest re-entry;
(c) upon death of an employee who withdraws from
service after age 55 (or after age 50 with at least 30
years of service if withdrawal is on or after June 27,
1997) and who has entered upon or is eligible for
annuity.
Payment shall be made as provided in Section 8-125.
(Source: P.A. 90-31, eff. 6-27-97.)
(40 ILCS 5/8-173) (from Ch. 108 1/2, par. 8-173)
Sec. 8-173. Financing; tax levy.
(a) Except as provided in subsection (f) of this
Section, the city council of the city shall levy a tax
annually upon all taxable property in the city at a rate that
will produce a sum which, when added to the amounts deducted
from the salaries of the employees or otherwise contributed
by them and the amounts deposited under subsection (f), will
be sufficient for the requirements of this Article, but which
when extended will produce an amount not to exceed the
greater of the following: (a) the sum obtained by the levy of
a tax of .1093% of the value, as equalized or assessed by the
Department of Revenue, of all taxable property within such
city, or (b) the sum of $12,000,000. However any city in
which a Fund has been established and in operation under this
Article for more than 3 years prior to 1970, that city shall
levy for the year 1970 a tax at a rate on the dollar of
assessed valuation of all taxable property that will produce,
when extended, an amount not to exceed 1.2 times the total
amount of contributions made by employees to the Fund for
annuity purposes in the calendar year 1968, and, for the year
1971 and 1972 such levy that will produce, when extended, an
amount not to exceed 1.3 times the total amount of
contributions made by of employees to the Fund for annuity
purposes in the calendar years 1969 and 1970, respectively;
and for the year 1973 an amount not to exceed 1.365 times
such total amount of contributions made by employees for
annuity purposes in the calendar year 1971; and for the year
1974 an amount not to exceed 1.430 times such total amount of
contributions made by employees for annuity purposes in the
calendar year 1972; and for the year 1975 an amount not to
exceed 1.495 times such total amount of contributions made by
employees for annuity purposes in the calendar year 1973; and
for the year 1976 an amount not to exceed 1.560 times such
total amount of contributions made by employees for annuity
purposes in the calendar year 1974; and for the year 1977 an
amount not to exceed 1.625 times such total amount of
contributions made by employees for annuity purposes in the
calendar year 1975; and for the year 1978 and each year
thereafter, such levy as that will produce, when extended, an
amount not to exceed 1.690 times the total amount of
contributions made by or on behalf of employees to the Fund
for annuity purposes in the calendar year 2 years prior to
the year for which the annual applicable tax is levied,
multiplied by 1.690 for the years 1978 through 1998 and by
1.250 for the year 1999 and for each year thereafter.
The tax shall be levied and collected in like manner with
the general taxes of the city, and shall be exclusive of and
in addition to the amount of tax the city is now or may
hereafter be authorized to levy for general purposes under
any laws which may limit the amount of tax which the city may
levy for general purposes. The county clerk of the county in
which the city is located, in reducing tax levies under the
provisions of any Act concerning the levy and extension of
taxes, shall not consider the tax herein provided for as a
part of the general tax levy for city purposes, and shall not
include the same within any limitation of the percent of the
assessed valuation upon which taxes are required to be
extended for such city.
Revenues derived from such tax shall be paid to the city
treasurer of the city as collected and held by him for the
benefit of the fund.
If the payments on account of taxes are insufficient
during any year to meet the requirements of this Article, the
city may issue tax anticipation warrants against the current
tax levy.
(b) On or before January 10, annually, the board shall
notify the city council of the requirements of this Article
that the tax herein provided shall be levied for that current
year. The board shall compute the amounts necessary to be
credited to the reserves established and maintained as herein
provided, and shall make an annual determination of the
amount of the required city contributions, and certify the
results thereof to the city council.
(c) In respect to employees of the city who are
transferred to the employment of a park district by virtue of
the "Exchange of Functions Act of 1957", the corporate
authorities of the park district shall annually levy a tax
upon all the taxable property in the park district at such
rate per cent of the value of such property, as equalized or
assessed by the Department of Revenue, as shall be
sufficient, when added to the amounts deducted from their
salaries and otherwise contributed by them to provide the
benefits to which they and their dependents and beneficiaries
are entitled under this Article. The city shall not levy a
tax hereunder in respect to such employees.
The tax so levied by the park district shall be in
addition to and exclusive of all other taxes authorized to be
levied by the park district for corporate, annuity fund, or
other purposes. The county clerk of the county in which the
park district is located, in reducing any tax levied under
the provisions of any act concerning the levy and extension
of taxes shall not consider such tax as part of the general
tax levy for park purposes, and shall not include the same in
any limitation of the per cent of the assessed valuation upon
which taxes are required to be extended for the park
district. The proceeds of the tax levied by the park
district, upon receipt by the district, shall be immediately
paid over to the city treasurer of the city for the uses and
purposes of the fund.
The various sums, to be contributed by the city and park
district and allocated for the purposes of this Article, and
any interest to be contributed by the city, shall be derived
from the revenue from the taxes authorized in this Section
said tax or otherwise as expressly provided in this Section.
If it is not possible or practicable for the city to make
contributions for age and service annuity and widow's annuity
at the same time that employee contributions are made for
such purposes, such city contributions shall be construed to
be due and payable as of the end of the fiscal year for which
the tax is levied and shall accrue thereafter with interest
at the effective rate until paid.
(d) With respect to employees whose wages are funded as
participants under the Comprehensive Employment and Training
Act of 1973, as amended (P.L. 93-203, 87 Stat. 839, P.L.
93-567, 88 Stat. 1845), hereinafter referred to as CETA,
subsequent to October 1, 1978, and in instances where the
board has elected to establish a manpower program reserve,
the board shall compute the amounts necessary to be credited
to the manpower program reserves established and maintained
as herein provided, and shall make a periodic determination
of the amount of required contributions from the City to the
reserve to be reimbursed by the federal government in
accordance with rules and regulations established by the
Secretary of the United States Department of Labor or his
designee, and certify the results thereof to the City
Council. Any such amounts shall become a credit to the City
and will be used to reduce the amount which the City would
otherwise contribute during succeeding years for all
employees.
(e) In lieu of establishing a manpower program reserve
with respect to employees whose wages are funded as
participants under the Comprehensive Employment and Training
Act of 1973, as authorized by subsection (d), the board may
elect to establish a special municipality contribution rate
for all such employees. If this option is elected, the City
shall contribute to the Fund from federal funds provided
under the Comprehensive Employment and Training Act program
at the special rate so established and such contributions
shall become a credit to the City and be used to reduce the
amount which the City would otherwise contribute during
succeeding years for all employees.
(f) In lieu of levying all or a portion of the tax
required under this Section in any year, the city may deposit
with the city treasurer no later than March 1 of that year
for the benefit of the fund, to be held in accordance with
this Article, an amount that, together with the taxes levied
under this Section for that year, is not less than the amount
of the city contributions for that year as certified by the
board to the city council. The deposit may be derived from
any source legally available for that purpose, including, but
not limited to, the proceeds of city borrowings. The making
of a deposit shall satisfy fully the requirements of this
Section for that year to the extent of the amounts so
deposited. Amounts deposited under this subsection may be
used by the fund for any of the purposes for which the
proceeds of the tax levied by the city under this Section may
be used, including the payment of any amount that is
otherwise required by this Article to be paid from the
proceeds of that tax.
(Source: P.A. 90-31, eff. 6-27-97; revised 12-18-97.)
(40 ILCS 5/8-230.7 new)
Sec. 8-230.7. Service rendered to Public Building
Commission.
(a) An employee or former employee may contribute to the
fund and receive credit for all periods of full-time
employment by the Public Building Commission created by the
employing city, except for those periods for which the
employee retains a right to credit in another public pension
fund or retirement system. Such service credit shall be paid
for and granted on the same basis and under the same
conditions as are applicable in the case of employees who
make payment for past service under Section 8-230, provided
that the person must also pay the corresponding employer
contributions. The contributions shall be based on the
salary actually received by the person from the Commission
for that employment.
(b) A person establishing service credit under
subsection (a) may, at the same time, reinstate service
credit that was terminated through receipt of a refund by
repaying to the Fund the amount of the refund plus interest
at the effective rate from the date of the refund to the date
of repayment.
(c) An eligible person may establish service credit
under subsection (a) and reinstate service credit under
subsection (b) without returning to active service as an
employee under this Article, but the required contributions
and repayment must be received by the Fund before the person
begins to receive a retirement annuity under this Article.
(40 ILCS 5/8-244.1) (from Ch. 108 1/2, par. 8-244.1)
Sec. 8-244.1. Payment of annuity other than direct.
(a) The board, at the written direction and request of
any annuitant, may, solely as an accommodation to such
annuitant, pay the annuity due him to a bank, savings and
loan association or any other financial institution insured
by an agency of the federal government, for deposit to his
account, or to a bank or trust company for deposit in a trust
established by him for his benefit with such bank, savings
and loan association or trust company, and such annuitant may
withdraw such direction at any time. The board may also, in
the case of any disability beneficiary or annuitant for whom
no estate guardian has been appointed and who is confined in
a publicly owned and operated mental institution, pay such
disability benefit or annuity due such person to the
superintendent or other head of such institution or hospital
for deposit to such person's trust fund account maintained
for him by such institution or hospital, if by law such trust
fund accounts are authorized or recognized.
(b) An annuitant formerly employed by the City of
Chicago may authorize the withholding of a portion of his or
her annuity for payment of dues to the labor organization
which formerly represented the annuitant when the annuitant
was an active employee; however, no withholding shall be
required under this subsection for payment to one labor
organization unless a minimum of 25 annuitants authorize such
withholding. The Board shall prescribe a form for the
authorization of withholding of dues, release of name, social
security number and address and shall provide such forms to
employees, annuitants and labor organizations upon request.
Amounts withheld by the Board under this subsection shall be
promptly paid over to the designated organizations,
indicating the names, social security numbers and addresses
of annuitants on whose behalf dues were withheld.
At the request and at the expense of the labor
organization that formerly represented the annuitant, the
City of Chicago shall coordinate mailings no more than twice
in any twelve-month period to such annuitants and the Board
shall supply current annuitant addresses to the City of
Chicago upon request. These mailings shall be limited to
informing the annuitants of their rights under this
subsection (b), the form authorizing the withholding of dues
from their annuity and information supplied by the labor
organization pertinent to the decision of whether to exercise
the rights of this subsection. To meet this obligation, the
City of Chicago shall, upon request, create and update
records of all retirees for each labor organization as far
back in time as records permit, including their names,
addresses, phone numbers and social security numbers.
(Source: P.A. 83-1362.)
(40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
Sec. 11-134. Minimum annuities.
(a) An employee whose withdrawal occurs after July 1,
1957 at age 60 or over, with 20 or more years of service, (as
service is defined or computed in Section 11-216), for whom
the age and service and prior service annuity combined is
less than the amount stated in this Section, shall, from and
after the date of withdrawal, in lieu of all annuities
otherwise provided in this Article, be entitled to receive an
annuity for life of an amount equal to 1 2/3% for each year
of service, of the highest average annual salary for any 5
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal; provided, that
in the case of any employee who withdraws on or after July 1,
1971, such employee age 60 or over with 20 or more years of
service, shall be entitled to instead receive an annuity for
life equal to 1.67% for each of the first 10 years of
service; 1.90% for each of the next 10 years of service;
2.10% for each year of service in excess of 20 but not
exceeding 30; and 2.30% for each year of service in excess of
30, based on the highest average annual salary for any 4
consecutive years within the last 10 years of service
immediately preceding the date of withdrawal.
An employee who withdraws after July 1, 1957 and before
January 1, 1988, with 20 or more years of service, before age
60, shall be entitled to an annuity, to begin not earlier
than age 55, if under such age at withdrawal, as computed in
the last preceding paragraph, reduced 0.25% if the employee
was born before January 1, 1936, or 0.5% if the employee was
born on or after January 1, 1936, for each full month or
fractional part thereof that his attained age when such
annuity is to begin is less than 60.
Any employee born before January 1, 1936 who withdraws
with 20 or more years of service, and any employee with 20 or
more years of service who withdraws on or after January 1,
1988, may elect to receive, in lieu of any other employee
annuity provided in this Section, an annuity for life equal
to 1.80% for each of the first 10 years of service, 2.00% for
each of the next 10 years of service, 2.20% for each year of
service in excess of 20, but not exceeding 30, and 2.40% for
each year of service in excess of 30, of the highest average
annual salary for any 4 consecutive years within the last 10
years of service immediately preceding the date of
withdrawal, to begin not earlier than upon attained age of 55
years, if under such age at withdrawal, reduced 0.25% for
each full month or fractional part thereof that his attained
age when annuity is to begin is less than 60; except that an
employee retiring on or after January 1, 1988, at age 55 or
over but less than age 60, having at least 35 years of
service, or an employee retiring on or after July 1, 1990, at
age 55 or over but less than age 60, having at least 30 years
of service, or an employee retiring on or after the effective
date of this amendatory Act of 1997, at age 55 or over but
less than age 60, having at least 25 years of service, shall
not be subject to the reduction in retirement annuity because
of retirement below age 60.
However, in the case of an employee who retired on or
after January 1, 1985 but before January 1, 1988, at age 55
or older and with at least 35 years of service, and who was
subject under this subsection (a) to the reduction in
retirement annuity because of retirement below age 60, that
reduction shall cease to be effective January 1, 1991, and
the retirement annuity shall be recalculated accordingly.
Any employee who withdraws on or after July 1, 1990, with
20 or more years of service, may elect to receive, in lieu of
any other employee annuity provided in this Section, an
annuity for life equal to 2.20% for each year of service of
the highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding the
date of withdrawal, to begin 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 this paragraph (a) 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
said paragraphs $1,500 shall be considered the minimum annual
salary for any year; and the maximum annual salary to be
considered for the computation of such annuity shall be
$4,800 for any year prior to 1953, $6,000 for the years 1953
to 1956, inclusive, and the actual annual salary, as salary
is defined in this Article, for any year thereafter.
(b) For an employee receiving disability benefit, his
salary for annuity purposes under this Section shall, for all
periods of disability benefit subsequent to the year 1956, be
the amount on which his disability benefit was based.
(c) An employee with 20 or more years of service, whose
entire disability benefit credit period expires prior to
attainment of age 55 while still disabled for service, shall
be entitled upon withdrawal to the larger of (1) the minimum
annuity provided above assuming that he is then age 55, and
reducing such annuity to its actuarial equivalent at his
attained age on such date, or (2) the annuity provided from
his age and service and prior service annuity credits.
(d) The minimum annuity provisions as aforesaid shall
not apply to any former employee receiving an annuity from
the fund, and who re-enters service as an employee, unless he
renders at least 3 years of additional service after the date
of re-entry.
(e) An employee in service on July 1, 1947, or who
became a contributor after July 1, 1947 and prior to July 1,
1950, or who shall become a contributor to the fund after
July 1, 1950 prior to attainment of age 70, who withdraws
after age 65 with less than 20 years of service, for whom the
annuity has been fixed under the foregoing Sections of this
Article shall, in lieu 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 would have been 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.
(f) In lieu of the annuity provided in this or in any
other Section of 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 shall be entitled to
receive a minimum annual annuity for life equal to 1% of the
highest average annual salary for any 4 consecutive years
within the last 10 years of service immediately preceding
retirement for each year of his service plus the sum of $25
for each year of service. Such annual annuity shall not
exceed the maximum percentages stated under paragraph (a) of
this Section of such highest average annual salary.
(f-1) Instead of any other retirement annuity provided
in this Article, an employee who has at least 10 years of
service and withdraws from service on or after January 1,
1999 may elect to receive a retirement annuity for life,
beginning no earlier than upon attainment of age 60, equal to
2.2% of final average salary for each year of service,
subject to a maximum of 75% of final average salary. For the
purpose of calculating this annuity, "final average salary"
means the highest average annual salary for any 4 consecutive
years in the last 10 years of service.
(g) Any annuity payable under the preceding subsections
of this Section 11-134 shall be paid in equal monthly
installments.
(h) The amendatory provisions of part (a) and (f) 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.
(i) The amendatory provisions of this amendatory Act of
1985 relating to the discount of annuity because of
retirement prior to attainment of age 60 and increasing the
retirement formula for those born before January 1, 1936,
shall apply only to qualifying employees withdrawing on or
after August 16, 1985.
(j) Beginning on January 1, 1999 the effective date of
this amendatory Act of 1997, the minimum amount of employee's
annuity shall be $850 $550 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 1998 1997:
(1) any employee annuitant alive and receiving a
life annuity on the effective date of this amendatory Act
of 1998 1997, except a reciprocal annuity;
(2) any employee annuitant alive and receiving a
term annuity on the effective date of this amendatory Act
of 1998 1997, except a reciprocal annuity;
(3) any employee annuitant alive and receiving a
reciprocal annuity on the effective date of this
amendatory Act of 1998 1997, 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
1998 1997, with at least 10 years of service in this
fund.
The increases granted under items (1), (2) and (3) of
this subsection (j) shall not be limited by any other Section
of this Act.
(Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97.)
(40 ILCS 5/11-134.1) (from Ch. 108 1/2, par. 11-134.1)
Sec. 11-134.1. Automatic increase in annuity.
(a) An employee who retired or retires from service
after December 31, 1963, and before January 1, 1987, having
attained age 60 or more, shall, in the month of January of
the year following the year in which the first anniversary of
retirement occurs, have the amount of his then fixed and
payable monthly annuity increased by 1 1/2%, and such first
fixed annuity as granted at retirement increased by a further
1 1/2% in January of each year thereafter. Beginning with
January of the year 1972, such increases shall be at the rate
of 2% in lieu of the aforesaid specified 1 1/2%. Beginning
January, 1984, such increases shall be at the rate of 3%.
Beginning in January of 1999, such increases shall be at the
rate of 3% of the currently payable monthly annuity,
including any increases previously granted under this
Article. An Such employee who retires on annuity after
December 31, 1963 and before January 1, 1987, but prior to
age 60, shall receive such increases beginning with January
of the year immediately following the year in which he
attains the age of 60 years.
An employee who retires from service on or after January
1, 1987 shall, upon the first annuity payment date following
the first anniversary of the date of retirement, or upon the
first annuity payment date following attainment of age 60,
whichever occurs later, have his then fixed and payable
monthly annuity increased by 3%, and such annuity shall be
increased by an additional 3% of the original fixed annuity
on the same date each year thereafter. Beginning in January
of 1999, such increases shall be at the rate of 3% of the
currently payable monthly annuity, including any increases
previously granted under this Article.
(b) The foregoing provision is not applicable to an
employee retiring and receiving a