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Public Act 91-0887
HB1583 Enrolled LRB9101658EGfg
AN ACT in relation to public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Employees Group Insurance Act of
1971 is amended by changing Section 6.10 as follows:
(5 ILCS 375/6.10)
Sec. 6.10. Contributions to the Community College Health
Insurance Security Fund.
(a) Beginning January 1, 1999, every active contributor
of the State Universities Retirement System (established
under Article 15 of the Illinois Pension Code) who (1) is a
full-time employee of a community college district (other
than a community college district subject to Article VII of
the Public Community College Act) or an association of
community college boards and (2) is not an employee as
defined in Section 3 of this Act shall make contributions
toward the cost of community college annuitant and survivor
health benefits at the rate of 0.50% of salary.
These contributions shall be deducted by the employer and
paid to the State Universities Retirement System as service
agent for the Department of Central Management Services. The
System may use the same processes for collecting the
contributions required by this subsection that it uses to
collect the contributions received from those employees under
Section 15-157 of the Illinois Pension Code. An employer may
agree to pick up or pay the contributions required under this
subsection on behalf of the employee; such contributions
shall be deemed to have been paid by the employee.
A person required to make contributions under this
subsection (a) who purchases optional service credit under
Article 15 of the Illinois Pension Code must also pay the
contribution required under this subsection (a) with respect
to that optional service credit. This contribution must be
received by the System before that optional service credit is
granted.
The State Universities Retirement System shall promptly
deposit all moneys collected under this subsection (a) into
the Community College Health Insurance Security Fund created
in Section 6.9 of this Act. The moneys collected under this
Section shall be used only for the purposes authorized in
Section 6.9 of this Act and shall not be considered to be
assets of the State Universities Retirement System.
Contributions made under this Section are not transferable to
other pension funds or retirement systems and are not
refundable upon termination of service.
(b) Beginning January 1, 1999, every community college
district (other than a community college district subject to
Article VII of the Public Community College Act) or
association of community college boards that is an employer
under the State Universities Retirement System shall
contribute toward the cost of the community college health
benefits provided under Section 6.9 of this Act an amount
equal to 0.50% of the salary paid to its full-time employees
who participate in the State Universities Retirement System
and are not members as defined in Section 3 of this Act.
These contributions shall be paid by the employer to the
State Universities Retirement System as service agent for the
Department of Central Management Services. The System may
use the same processes for collecting the contributions
required by this subsection that it uses to collect the
contributions received from those employers under Section
15-155 of the Illinois Pension Code.
The State Universities Retirement System shall promptly
deposit all moneys collected under this subsection (b) into
the Community College Health Insurance Security Fund created
in Section 6.9 of this Act. The moneys collected under this
Section shall be used only for the purposes authorized in
Section 6.9 of this Act and shall not be considered to be
assets of the State Universities Retirement System.
Contributions made under this Section are not transferable to
other pension funds or retirement systems and are not
refundable upon termination of service.
(c) On or before November 15 of each year, the Board of
Trustees of the State Universities Retirement System shall
certify to the Governor, the Director of Central Management
Services, and the State Comptroller its estimate of the total
amount of contributions to be paid under subsection (a) of
this Section for the next fiscal year. The certification
shall include a detailed explanation of the methods and
information that the Board relied upon in preparing its
estimate. As soon as possible after the effective date of
this Section, the Board shall submit its estimate for fiscal
year 1999.
(d) Beginning in fiscal year 1999, on the first day of
each month, or as soon thereafter as may be practical, the
State Treasurer and the State Comptroller shall transfer from
the General Revenue Fund to the Community College Health
Insurance Security Fund 1/12 of the annual amount
appropriated for that fiscal year to the State Comptroller
for deposit into the Community College Health Insurance
Security Fund under Section 1.4 of the State Pension Funds
Continuing Appropriation Act.
(e) Except where otherwise specified in this Section,
the definitions that apply to Article 15 of the Illinois
Pension Code apply to this Section.
(Source: P.A. 90-497, eff. 8-18-97.)
Section 10. The Illinois Pension Code is amended by
changing Sections 1-113.2, 1-116, 2-121, 2-121.1, 3-110,
7-139, 7-141, 7-141.1, 7-145.1, 7-157, 7-164, 7-166, 7-167,
7-184, 7-211, 8-125, 8-139, 8-153, 8-171, 8-244, 9-149,
9-194, 11-124, 11-134.2, 11-148, 11-167, 11-181, 11-182,
11-223, 13-303, 13-309, 13-310, 13-311, 13-314, 13-603,
14-118, 14-120, 14-128, 14-130, 15-107, 15-111, 15-112,
15-120, 15-134.5, 15-136.4, 15-139, 15-140, 15-141, 15-142,
15-144, 15-145, 15-154, 15-158.2, 15-181, 16-133, 16-135,
16-136.4, 16-138, 16-140, 16-143, 16-149.4, 16-184, 17-106,
17-117, 17-133, 17-150, 18-128, 20-121, 20-123, 20-124,
20-125, and 20-131 and adding Sections 1-120, 7-224, and
15-132.2 as follows:
(40 ILCS 5/1-113.2)
Sec. 1-113.2. List of permitted investments for all
Article 3 or 4 pension funds. Any pension fund established
under Article 3 or 4 may invest in the following items:
(1) Interest bearing direct obligations of the United
States of America.
(2) Interest bearing obligations to the extent that they
are fully guaranteed or insured as to payment of principal
and interest by the United States of America.
(3) Interest bearing bonds, notes, debentures, or other
similar obligations of agencies of the United States of
America. For the purposes of this Section, "agencies of the
United States of America" includes: (i) the Federal National
Mortgage Association and the Student Loan Marketing
Association; (ii) federal land banks, federal intermediate
credit banks, federal farm credit banks, and any other entity
authorized to issue direct debt obligations of the United
States of America under the Farm Credit Act of 1971 or
amendments to that Act; (iii) federal home loan banks and the
Federal Home Loan Mortgage Corporation; and (iv) any agency
created by Act of Congress that is authorized to issue direct
debt obligations of the United States of America.
(4) Interest bearing savings accounts or certificates of
deposit, issued by federally chartered banks or savings and
loan associations, to the extent that the deposits are
insured by agencies or instrumentalities of the federal
government.
(5) Interest bearing savings accounts or certificates of
deposit, issued by State of Illinois chartered banks or
savings and loan associations, to the extent that the
deposits are insured by agencies or instrumentalities of the
federal government.
(6) Investments in credit unions, to the extent that the
investments are insured by agencies or instrumentalities of
the federal government.
(7) Interest bearing bonds of the State of Illinois.
(8) Pooled interest bearing accounts managed by the
Illinois Public Treasurer's Investment Pool in accordance
with the Deposit of State Moneys Act and interest bearing
funds or pooled accounts managed, operated, and administered
by banks, subsidiaries of banks, or subsidiaries of bank
holding companies in accordance with the laws of the State of
Illinois.
(9) Interest bearing bonds or tax anticipation warrants
of any county, township, or municipal corporation of the
State of Illinois.
(10) Direct obligations of the State of Israel, subject
to the conditions and limitations of item (5.1) of Section
1-113.
(11) Money market mutual funds managed by investment
companies that are registered under the federal Investment
Company Act of 1940 and the Illinois Securities Law of 1953
and are diversified, open-ended management investment
companies; provided that the portfolio of the money market
mutual fund is limited to the following:
(i) bonds, notes, certificates of indebtedness,
treasury bills, or other securities that are guaranteed
by the full faith and credit of the United States of
America as to principal and interest;
(ii) bonds, notes, debentures, or other similar
obligations of the United States of America or its
agencies; and
(iii) short term obligations of corporations
organized in the United States with assets exceeding
$400,000,000, provided that (A) the obligations mature no
later than 180 days from the date of purchase, (B) at the
time of purchase, the obligations are rated by at least 2
standard national rating services at one of their 3
highest classifications, and (C) the obligations held by
the mutual fund do not exceed 10% of the corporation's
outstanding obligations.
(12) General accounts of life insurance companies
authorized to transact business in Illinois.
(13) Any combination of the following, not to exceed 10%
of the pension fund's net assets:
(i) separate accounts that are managed by life
insurance companies authorized to transact business in
Illinois and are comprised of diversified portfolios
consisting of common or preferred stocks, bonds, or money
market instruments; and
(ii) separate accounts that are managed by
insurance companies authorized to transact business in
Illinois, and are comprised of real estate or loans upon
real estate secured by first or second mortgages; and
(iii) mutual funds that meet the following
requirements:
(A) the mutual fund is managed by an
investment company as defined and registered under
the federal Investment Company Act of 1940 and
registered under the Illinois Securities Law of
1953;
(B) the mutual fund has been in operation for
at least 5 years;
(C) the mutual fund has total net assets of
$250 million or more; and
(D) the mutual fund is comprised of
diversified portfolios of common or preferred
stocks, bonds, or money market instruments.
(Source: P.A. 90-507, eff. 8-22-97.)
(40 ILCS 5/1-116) (from Ch. 108 1/2, par. 1-116)
Sec. 1-116. Federal contribution and benefit limitations
limitation.
(a) This Section applies to all pension funds and
retirement systems established under this Code.
(a-5) All pension funds and retirement systems
established under this Code shall comply with the applicable
contribution and benefit limitations imposed by Section 415
of the U.S. Internal Revenue Code of 1986 for tax qualified
plans under Section 401(a) of that Code.
(b) If any benefit payable by a pension fund or
retirement system subject to this Section exceeds the
applicable benefit limits set by Section 415 of the U.S.
Internal Revenue Code of 1986 for tax qualified plans under
Section 401(a) of that Code, the excess shall be payable only
from an excess benefit fund established under this Section in
accordance with federal law.
(c) An excess benefit fund shall be established by any
pension fund or retirement system subject to this Section
that has any member eligible to receive a benefit that
exceeds the applicable benefit limits set by Section 415 of
the U.S. Internal Revenue Code of 1986 for tax qualified
plans under Section 401(a) of that Code. Amounts shall be
credited to the excess benefit fund, and payments for excess
benefits made from the excess benefit fund, in a manner
consistent with the applicable federal law.
(d) For purposes of matters relating to the benefit
limits set by Section 415 of the U.S. Internal Revenue Code
of 1986, the limitation year may be defined by each affected
pension fund or retirement system for that fund or system.
(Source: P.A. 90-19, eff. 6-20-97.)
(40 ILCS 5/1-120 new)
Sec. 1-120. Payment to trust.
(a) If a person is a minor or has been determined by a
court to be under a legal disability, any benefits payable to
that person under this Code may be paid to the trustee of a
trust created for the sole benefit of that person while the
person is living, if the trustee of the trust has advised the
board of trustees of the pension fund or retirement system in
writing that the benefits will be held or used for the sole
benefit of that person. The pension fund or retirement
system shall not be required to determine the validity of the
trust or of any of the terms of the trust. The
representation of the trustee that the trust meets the
requirements of this Section shall be conclusive as to the
pension fund or retirement system. Payment of benefits to
the trust shall be an absolute discharge of the pension fund
or retirement system's liability with respect to the amounts
so paid.
(b) For purposes of this Section, "minor" means an
unmarried person under the age of 18.
(c) This Section is not a limitation on any other power
to pay benefits to or on behalf of a minor or person under
legal disability that is granted under this Code or other
applicable law.
(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, if the remarriage occurs
before the effective date of this amendatory Act of the 91st
General Assembly.
The changes made to this subsection by this amendatory
Act of the 91st General Assembly (pertaining to remarriage
prior to age 55) apply without regard to whether the deceased
participant or annuitant was in service on or after the
effective date of this amendatory Act.
(Source: P.A. 89-136, eff. 7-14-95; 90-766, eff. 8-14-98.)
(40 ILCS 5/2-121.1) (from Ch. 108 1/2, par. 2-121.1)
Sec. 2-121.1. Survivor's annuity - amount.
(a) A surviving spouse shall be entitled to 66 2/3% of
the amount of retirement annuity to which the participant or
annuitant was entitled on the date of death, without regard
to whether the participant had attained age 55 prior to his
or her death, subject to a minimum payment of 10% of salary.
If a surviving spouse, regardless of age, has in his or her
care at the date of death any eligible child or children of
the participant, the survivor's annuity shall be the greater
of the following: (1) 66 2/3% of the amount of retirement
annuity to which the participant or annuitant was entitled on
the date of death, or (2) 30% of the participant's salary
increased by 10% of salary on account of each such child,
subject to a total payment for the surviving spouse and
children of 50% of salary. If eligible children survive but
there is no surviving spouse, or if the surviving spouse
remarries or dies or becomes disqualified by remarriage while
eligible children survive, each eligible child shall be
entitled to an annuity of 20% of salary, subject to a maximum
total payment for all such children of 50% of salary.
However, the survivor's annuity payable under this
Section shall not be less than 100% of the amount of
retirement annuity to which the participant or annuitant was
entitled on the date of death, if he or she is survived by a
dependent disabled child.
The salary to be used for determining these benefits
shall be the salary used for determining the amount of
retirement annuity as provided in Section 2-119.01.
(b) Upon the death of a participant after the
termination of service or upon death of an annuitant, the
maximum total payment to a surviving spouse and eligible
children, or to eligible children alone if there is no
surviving spouse, shall be 75% of the retirement annuity to
which the participant or annuitant was entitled, unless there
is a dependent disabled child among the survivors.
(c) When a child ceases to be an eligible child, the
annuity to that child, or to the surviving spouse on account
of that child, shall thereupon cease, and the annuity payable
to the surviving spouse or other eligible children shall be
recalculated if necessary.
Upon the ineligibility of the last eligible child, the
annuity shall immediately revert to the amount payable upon
death of a participant or annuitant who leaves no eligible
children. If the surviving spouse is then under age 50, the
annuity as revised shall be deferred until the attainment of
age 50.
(d) Beginning January 1, 1990, every survivor's annuity
shall be increased (1) on each January 1 occurring on or
after the commencement of the annuity if the deceased member
died while receiving a retirement annuity, or (2) in other
cases, on each January 1 occurring on or after the first
anniversary of the commencement of the annuity, by an amount
equal to 3% of the current amount of the annuity, including
any previous increases under this Article. Such increases
shall apply without regard to whether the deceased member was
in service on or after the effective date of this amendatory
Act of 1991, but shall not accrue for any period prior to
January 1, 1990.
(e) Notwithstanding any other provision of this Article,
beginning January 1, 1990, the minimum survivor's annuity
payable to any person who is entitled to receive a survivor's
annuity under this Article shall be $300 per month, without
regard to whether or not the deceased participant was in
service on the effective date of this amendatory Act of 1989.
(f) In the case of a proportional survivor's annuity
arising under the Retirement Systems Reciprocal Act where the
amount payable by the System on January 1, 1993 is less than
$300 per month, the amount payable by the System shall be
increased beginning on that date by a monthly amount equal to
$2 for each full year that has expired since the annuity
began.
(Source: P.A. 86-273; 86-1488; 87-794; 87-1265.)
(40 ILCS 5/3-110) (from Ch. 108 1/2, par. 3-110)
Sec. 3-110. Creditable service.
(a) "Creditable service" is the time served by a police
officer as a member of a regularly constituted police force
of a municipality. In computing creditable service furloughs
without pay exceeding 30 days shall not be counted, but all
leaves of absence for illness or accident, regardless of
length, and all periods of disability retirement for which a
police officer has received no disability pension payments
under this Article shall be counted.
(b) Creditable service includes all periods of service
in the military, naval or air forces of the United States
entered upon while an active police officer of a
municipality, provided that upon applying for a permanent
pension, and in accordance with the rules of the board, the
police officer pays into the fund the amount the officer
would have contributed if he or she had been a regular
contributor during such period, to the extent that the
municipality which the police officer served has not made
such contributions in the officer's behalf. The total amount
of such creditable service shall not exceed 5 years, except
that any police officer who on July 1, 1973 had more than 5
years of such creditable service shall receive the total
amount thereof.
(c) Creditable service also includes service rendered by
a police officer while on leave of absence from a police
department to serve as an executive of an organization whose
membership consists of members of a police department,
subject to the following conditions: (i) the police officer
is a participant of a fund established under this Article
with at least 10 years of service as a police officer; (ii)
the police officer received no credit for such service under
any other retirement system, pension fund, or annuity and
benefit fund included in this Code; (iii) pursuant to the
rules of the board the police officer pays to the fund the
amount he or she would have contributed had the officer been
an active member of the police department; and (iv) the
organization pays a contribution equal to the municipality's
normal cost for that period of service.
(d)(1) Creditable service also includes periods of
service originally established in another police pension fund
under this Article or in the Fund established under Article 7
of this Code for which (i) the contributions have been
transferred under Section 3-110.7 or Section 7-139.9 and (ii)
any additional contribution required under paragraph (2) of
this subsection has been paid in full in accordance with the
requirements of this subsection (d).
(2) If the board of the pension fund to which creditable
service and related contributions are transferred under
Section 3-110.7 or 7-139.9 determines that the amount
transferred is less than the true cost to the pension fund of
allowing that creditable service to be established, then in
order to establish that creditable service the police officer
must pay to the pension fund, within the payment period
specified in paragraph (3) of this subsection, an additional
contribution equal to the difference, as determined by the
board in accordance with the rules and procedures adopted
under paragraph (6) of this subsection.
(3) Except as provided in paragraph (4), the additional
contribution must be paid to the board (i) within 5 years
from the date of the transfer of contributions under Section
3-110.7 or 7-139.9 and (ii) before the police officer
terminates service with the fund. The additional
contribution may be paid in a lump sum or in accordance with
a schedule of installment payments authorized by the board.
(4) If the police officer dies in service before payment
in full has been made and before the expiration of the 5-year
payment period, the surviving spouse of the officer may elect
to pay the unpaid amount on the officer's behalf within 6
months after the date of death, in which case the creditable
service shall be granted as though the deceased police
officer had paid the remaining balance on the day before the
date of death.
(5) If the additional contribution is not paid in full
within the required time, the creditable service shall not be
granted and the police officer (or the officer's surviving
spouse or estate) shall be entitled to receive a refund of
(i) any partial payment of the additional contribution that
has been made by the police officer and (ii) those portions
of the amounts transferred under subdivision (a)(1) of
Section 3-110.7 or subdivisions (a)(1) and (a)(3) of Section
7-139.9 that represent employee contributions paid by the
police officer (but not the accumulated interest on those
contributions) and interest paid by the police officer to the
prior pension fund in order to reinstate service terminated
by acceptance of a refund.
At the time of paying a refund under this item (5), the
pension fund shall also repay to the pension fund from which
the contributions were transferred under Section 3-110.7 or
7-139.9 the amount originally transferred under subdivision
(a)(2) of that Section, plus interest at the rate of 6% per
year, compounded annually, from the date of the original
transfer to the date of repayment. Amounts repaid to the
Article 7 fund under this provision shall be credited to the
appropriate municipality.
Transferred credit that is not granted due to failure to
pay the additional contribution within the required time is
lost; it may not be transferred to another pension fund and
may not be reinstated in the pension fund from which it was
transferred.
(6) The Public Employee Pension Fund Division of the
Department of Insurance shall establish by rule the manner of
making the calculation required under paragraph (2) of this
subsection, taking into account the appropriate actuarial
assumptions; the police officer's service, age, and salary
history; the level of funding of the pension fund to which
the credits are being transferred; and any other factors that
the Division determines to be relevant. The rules may
require that all calculations made under paragraph (2) be
reported to the Division by the board performing the
calculation, together with documentation of the creditable
service to be transferred, the amounts of contributions and
interest to be transferred, the manner in which the
calculation was performed, the numbers relied upon in making
the calculation, the results of the calculation, and any
other information the Division may deem useful.
(Source: P.A. 89-52, eff. 6-30-95; 90-460, eff. 8-17-97.)
(40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
Sec. 7-139. Credits and creditable service to employees.
(a) Each participating employee shall be granted credits
and creditable service, for purposes of determining the
amount of any annuity or benefit to which he or a beneficiary
is entitled, as follows:
1. For prior service: Each participating employee
who is an employee of a participating municipality or
participating instrumentality on the effective date shall
be granted creditable service, but no credits under
paragraph 2 of this subsection (a), for periods of prior
service for which credit has not been received under any
other pension fund or retirement system established under
this Code, as follows:
If the effective date of participation for the
participating municipality or participating
instrumentality is on or before January 1, 1998,
creditable service shall be granted for the entire period
of prior service with that employer without any employee
contribution.
If the effective date of participation for the
participating municipality or participating
instrumentality is after January 1, 1998, creditable
service shall be granted for the last 20% of the period
of prior service with that employer, but no more than 5
years, without any employee contribution. A
participating employee may establish creditable service
for the remainder of the period of prior service with
that employer by making an application in writing,
accompanied by payment of an employee contribution in an
amount determined by the Fund, based on the employee
contribution rates in effect at the time of application
for the creditable service and the employee's salary rate
on the effective date of participation for that employer,
plus interest at the effective rate from the date of the
prior service to the date of payment. Application for
this creditable service may be made at any time while the
employee is still in service.
Any person who has withdrawn from the service of a
participating municipality or participating
instrumentality prior to the effective date, who reenters
the service of the same municipality or participating
instrumentality after the effective date and becomes a
participating employee is entitled to creditable service
for prior service as otherwise provided in this
subdivision (a)(1) only if he or she renders 2 years of
service as a participating employee after the effective
date. Application for such service must be made while in
a participating status. The salary rate to be used in
the calculation of the required employee contribution, if
any, shall be the employee's salary rate at the time of
first reentering service with the employer after the
employer's effective date of participation.
2. For current service, each participating employee
shall be credited with:
a. Additional credits of amounts equal to each
payment of additional contributions received from
him under Section 7-173, as of the date the
corresponding payment of earnings is payable to him.
b. Normal credits of amounts equal to each
payment of normal contributions received from him,
as of the date the corresponding payment of earnings
is payable to him, and normal contributions made for
the purpose of establishing out-of-state service
credits as permitted under the conditions set forth
in paragraph 6 of this subsection (a).
c. Municipality credits in an amount equal to
1.4 times the normal credits, except those
established by out-of-state service credits, as of
the date of computation of any benefit if these
credits would increase the benefit.
d. Survivor credits equal to each payment of
survivor contributions received from the
participating employee as of the date the
corresponding payment of earnings is payable, and
survivor contributions made for the purpose of
establishing out-of-state service credits.
3. For periods of temporary and total and permanent
disability benefits, each employee receiving disability
benefits shall be granted creditable service for the
period during which disability benefits are payable.
Normal and survivor credits, based upon the rate of
earnings applied for disability benefits, shall also be
granted if such credits would result in a higher benefit
to any such employee or his beneficiary.
4. For authorized leave of absence without pay: A
participating employee shall be granted credits and
creditable service for periods of authorized leave of
absence without pay under the following conditions:
a. An application for credits and creditable
service is submitted to the board while the employee
is in a status of active employment, and within 2
years after termination of the leave of absence
period for which credits and creditable service are
sought.
b. Not more than 12 complete months of
creditable service for authorized leave of absence
without pay shall be counted for purposes of
determining any benefits payable under this Article.
c. Credits and creditable service shall be
granted for leave of absence only if such leave is
approved by the governing body of the municipality,
including approval of the estimated cost thereof to
the municipality as determined by the fund, and
employee contributions, plus interest at the
effective rate applicable for each year from the end
of the period of leave to date of payment, have been
paid to the fund in accordance with Section 7-173.
The contributions shall be computed upon the
assumption earnings continued during the period of
leave at the rate in effect when the leave began.
d. Benefits under the provisions of Sections
7-141, 7-146, 7-150 and 7-163 shall become payable
to employees on authorized leave of absence, or
their designated beneficiary, only if such leave of
absence is creditable hereunder, and if the employee
has at least one year of creditable service other
than the service granted for leave of absence. Any
employee contributions due may be deducted from any
benefits payable.
e. No credits or creditable service shall be
allowed for leave of absence without pay during any
period of prior service.
5. For military service: The governing body of a
municipality or participating instrumentality may elect
to allow creditable service to participating employees
who leave their employment to serve in the armed forces
of the United States for all periods of such service,
provided that the person returns to active employment
within 90 days after completion of full time active duty,
but no creditable service shall be allowed such person
for any period that can be used in the computation of a
pension or any other pay or benefit, other than pay for
active duty, for service in any branch of the armed
forces of the United States. If necessary to the
computation of any benefit, the board shall establish
municipality credits for participating employees under
this paragraph on the assumption that the employee
received earnings at the rate received at the time he
left the employment to enter the armed forces. A
participating employee in the armed forces shall not be
considered an employee during such period of service and
no additional death and no disability benefits are
payable for death or disability during such period.
Any participating employee who left his employment
with a municipality or participating instrumentality to
serve in the armed forces of the United States and who
again became a participating employee within 90 days
after completion of full time active duty by entering the
service of a different municipality or participating
instrumentality, which has elected to allow creditable
service for periods of military service under the
preceding paragraph, shall also be allowed creditable
service for his period of military service on the same
terms that would apply if he had been employed, before
entering military service, by the municipality or
instrumentality which employed him after he left the
military service and the employer costs arising in
relation to such grant of creditable service shall be
charged to and paid by that municipality or
instrumentality.
Notwithstanding the foregoing, any participating
employee shall be entitled to creditable service as
required by any federal law relating to re-employment
rights of persons who served in the United States Armed
Services. Such creditable service shall be granted upon
payment by the member of an amount equal to the employee
contributions which would have been required had the
employee continued in service at the same rate of
earnings during the military leave period, plus interest
at the effective rate.
5.1. In addition to any creditable service
established under paragraph 5 of this subsection (a),
creditable service may be granted for up to 24 months of
service in the armed forces of the United States.
In order to receive creditable service for military
service under this paragraph 5.1, a participating
employee must (1) apply to the Fund in writing and
provide evidence of the military service that is
satisfactory to the Board; (2) obtain the written
approval of the current employer; and (3) make
contributions to the Fund equal to (i) the employee
contributions that would have been required had the
service been rendered as a member, plus (ii) an amount
determined by the board to be equal to the employer's
normal cost of the benefits accrued for that military
service, plus (iii) interest on items (i) and (ii) from
the date of first membership in the Fund to the date of
payment. If payment is made during the 6-month period
that begins 3 months after the effective date of this
amendatory Act of 1997, the required interest shall be at
the rate of 2.5% per year, compounded annually;
otherwise, the required interest shall be calculated at
the regular interest rate.
6. For out-of-state service: Creditable service
shall be granted for service rendered to an out-of-state
local governmental body under the following conditions:
The employee had participated and has irrevocably
forfeited all rights to benefits in the out-of-state
public employees pension system; the governing body of
his participating municipality or instrumentality
authorizes the employee to establish such service; the
employee has 2 years current service with this
municipality or participating instrumentality; the
employee makes a payment of contributions, which shall be
computed at 8% (normal) plus 2% (survivor) times length
of service purchased times the average rate of earnings
for the first 2 years of service with the municipality or
participating instrumentality whose governing body
authorizes the service established plus interest at the
effective rate on the date such credits are established,
payable from the date the employee completes the required
2 years of current service to date of payment. In no
case shall more than 120 months of creditable service be
granted under this provision.
7. For retroactive service: Any employee who could
have but did not elect to become a participating
employee, or who should have been a participant in the
Municipal Public Utilities Annuity and Benefit Fund
before that fund was superseded, may receive creditable
service for the period of service not to exceed 50
months; however, a current or former county board member
may establish credit under this paragraph 7 for more than
50 months of service as a member of the county board if
the excess over 50 months is approved by resolution of
the affected county board filed with the Fund before
January 1, 1999.
Any employee who is a participating employee on or
after September 24, 1981 and who was excluded from
participation by the age restrictions removed by Public
Act 82-596 may receive creditable service for the period,
on or after January 1, 1979, excluded by the age
restriction and, in addition, if the governing body of
the participating municipality or participating
instrumentality elects to allow creditable service for
all employees excluded by the age restriction prior to
January 1, 1979, for service during the period prior to
that date excluded by the age restriction. Any employee
who was excluded from participation by the age
restriction removed by Public Act 82-596 and who is not a
participating employee on or after September 24, 1981 may
receive creditable service for service after January 1,
1979. Creditable service under this paragraph shall be
granted upon payment of the employee contributions which
would have been required had he participated, with
interest at the effective rate for each year from the end
of the period of service established to date of payment.
8. For accumulated unused sick leave: A
participating employee who is applying for a retirement
annuity shall be entitled to creditable service for that
portion of the employee's accumulated unused sick leave
for which payment is not received, as follows:
a. Sick leave days shall be limited to those
accumulated under a sick leave plan established by a
participating municipality or participating
instrumentality which is available to all employees
or a class of employees.
b. Only sick leave days accumulated with a
participating municipality or participating
instrumentality with which the employee was in
service within 60 days of the effective date of his
retirement annuity shall be credited; If the
employee was in service with more than one employer
during this period only the sick leave days with the
employer with which the employee has the greatest
number of unpaid sick leave days shall be
considered.
c. The creditable service granted shall be
considered solely for the purpose of computing the
amount of the retirement annuity and shall not be
used to establish any minimum service period
required by any provision of the Illinois Pension
Code, the effective date of the retirement annuity,
or the final rate of earnings.
d. The creditable service shall be at the rate
of 1/20 of a month for each full sick day, provided
that no more than 12 months may be credited under
this subdivision 8.
e. Employee contributions shall not be
required for creditable service under this
subdivision 8.
f. Each participating municipality and
participating instrumentality with which an employee
has service within 60 days of the effective date of
his retirement annuity shall certify to the board
the number of accumulated unpaid sick leave days
credited to the employee at the time of termination
of service.
9. For service transferred from another system:
Credits and creditable service shall be granted for
service under Article 3, 4, 5, 14 or 16 of this Act, to
any active member of this Fund, and to any inactive
member who has been a county sheriff, upon transfer of
such credits pursuant to Section 3-110.3, 4-108.3, 5-235,
14-105.6 or 16-131.4, and payment by the member of the
amount by which (1) the employer and employee
contributions that would have been required if he had
participated in this Fund as a sheriff's law enforcement
employee during the period for which credit is being
transferred, plus interest thereon at the effective rate
for each year, compounded annually, from the date of
termination of the service for which credit is being
transferred to the date of payment, exceeds (2) the
amount actually transferred to the Fund. Such transferred
service shall be deemed to be service as a sheriff's law
enforcement employee for the purposes of Section 7-142.1.
(b) Creditable service - amount:
1. One month of creditable service shall be allowed
for each month for which a participating employee made
contributions as required under Section 7-173, or for
which creditable service is otherwise granted hereunder.
Not more than 1 month of service shall be credited and
counted for 1 calendar month, and not more than 1 year of
service shall be credited and counted for any calendar
year. A calendar month means a nominal month beginning
on the first day thereof, and a calendar year means a
year beginning January 1 and ending December 31.
2. A seasonal employee shall be given 12 months of
creditable service if he renders the number of months of
service normally required by the position in a 12-month
period and he remains in service for the entire 12-month
period. Otherwise a fractional year of service in the
number of months of service rendered shall be credited.
3. An intermittent employee shall be given
creditable service for only those months in which a
contribution is made under Section 7-173.
(c) No application for correction of credits or
creditable service shall be considered unless the board
receives an application for correction while (1) the
applicant is a participating employee and in active
employment with a participating municipality or
instrumentality, or (2) while the applicant is actively
participating in a pension fund or retirement system which is
a participating system under the Retirement Systems
Reciprocal Act. A participating employee or other applicant
shall not be entitled to credits or creditable service unless
the required employee contributions are made in a lump sum or
in installments made in accordance with board rule.
(d) Upon the granting of a retirement, surviving spouse
or child annuity, a death benefit or a separation benefit, on
account of any employee, all individual accumulated credits
shall thereupon terminate. Upon the withdrawal of additional
contributions, the credits applicable thereto shall thereupon
terminate. Terminated credits shall not be applied to
increase the benefits any remaining employee would otherwise
receive under this Article.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
Sec. 7-141. Retirement annuities - Conditions.
Retirement annuities shall be payable as hereinafter set
forth:
(a) A participating employee who, regardless of cause,
is separated from the service of all participating
municipalities and instrumentalities thereof and
participating instrumentalities shall be entitled to a
retirement annuity provided:
1. He is at least age 55, or in the case of a person who
is eligible to have his annuity calculated under Section
7-142.1, he is at least age 50;
2. He is (i) an employee who was employed by any
participating municipality or participating instrumentality
which had not elected to exclude persons employed in
positions normally requiring performance of duty for less
than 1000 hours per year or was employed in a position
normally requiring performance of duty for 600 hours or more
per year prior to such election by any participating
municipality or participating instrumentality included in and
subject to this Article on or before the effective date of
this amendatory Act of 1981 which made such election and is
not entitled to receive earnings for employment in a position
normally requiring performance of duty for 600 hours or more
per year for any participating municipality and
instrumentalities thereof and participating instrumentality;
or (ii) an employee who was employed only by a participating
municipality or participating instrumentality, or
participating municipalities or participating
instrumentalities, which have elected to exclude persons in
positions normally requiring performance of duty for less
than 1000 hours per year after the effective date of such
exclusion or which are included under and subject to the
Article after the effective date of this amendatory Act of
1981 and elects to exclude persons in such positions, and is
not entitled to receive earnings for employment in a position
normally requiring performance of duty for 1000 hours or more
per year by such a participating municipality or
participating instrumentality;
3. The amount of his annuity, before the application of
paragraph (b) of Section 7-142 is at least $10 per month;
4. If he first became a participating employee after
December 31, 1961, he has at least 8 years of service. This
service requirement shall not apply to any participating
employee, regardless of participation date, if the General
Assembly terminates the Fund.
(b) Retirement annuities shall be payable:
1. As provided in Section 7-119;
2. Except as provided in item 3, upon receipt by the
fund of a written application by the board. The effective
date may be not more than one year prior to the date of the
receipt by the fund of the application;
3. Upon attainment of age 70 1/2 if (i) the member (i)
has not submitted an application for the annuity, (ii) the
member has at least 8 years of service credit and is no
longer in service, and (ii) is otherwise entitled to an
annuity under this Article (iii) the pension amount is at
least $30 per month, and (iv) the Fund is able to locate the
member;
4. To the beneficiary of the deceased annuitant for the
unpaid amount accrued to date of death, if any.
(Source: P.A. 87-740.)
(40 ILCS 5/7-141.1)
Sec. 7-141.1. Early retirement incentive.
(a) The General Assembly finds and declares that:
(1) Units of local government across the State have
been functioning under a financial crisis.
(2) This financial crisis is expected to continue.
(3) Units of local government must depend on
additional sources of revenue and, when those sources are
not forthcoming, must establish cost-saving programs.
(4) An early retirement incentive designed
specifically to target highly-paid senior employees could
result in significant annual cost savings.
(5) The early retirement incentive should be made
available only to those units of local government that
determine that an early retirement incentive is in their
best interest.
(6) A unit of local government adopting a program
of early retirement incentives under this Section is
encouraged to implement personnel procedures to prohibit,
for at least 5 years, the rehiring (whether on payroll or
by independent contract) of employees who receive early
retirement incentives.
(7) A unit of local government adopting a program
of early retirement incentives under this Section is also
encouraged to replace as few of the participating
employees as possible and to hire replacement employees
for salaries totaling no more than 80% of the total
salaries formerly paid to the employees who participate
in the early retirement program.
It is the primary purpose of this Section to encourage
units of local government that can realize true cost savings,
or have determined that an early retirement program is in
their best interest, to implement an early retirement
program.
(b) Until the effective date of this amendatory Act of
1997, this Section does not apply to any employer that is a
city, village, or incorporated town, nor to the employees of
any such employer. Beginning on the effective date of this
amendatory Act of 1997, any employer under this Article,
including an employer that is a city, village, or
incorporated town, may establish an early retirement
incentive program for its employees under this Section. The
decision of a city, village, or incorporated town to consider
or establish an early retirement program is at the sole
discretion of that city, village, or incorporated town, and
nothing in this amendatory Act of 1997 limits or otherwise
diminishes this discretion. Nothing contained in this
Section shall be construed to require a city, village, or
incorporated town to establish an early retirement program
and no city, village, or incorporated town may be compelled
to implement such a program.
The benefits provided in this Section are available only
to members employed by a participating employer that has
filed with the Board of the Fund a resolution or ordinance
expressly providing for the creation of an early retirement
incentive program under this Section for its employees and
specifying the effective date of the early retirement
incentive program. Subject to the limitation in subsection
(h), an employer may adopt a resolution or ordinance
providing a program of early retirement incentives under this
Section at any time.
The resolution or ordinance shall be in substantially the
following form:
RESOLUTION (ORDINANCE) NO. ....
A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
WHEREAS, Section 7-141.1 of the Illinois Pension Code
provides that a participating employer may elect to adopt an
early retirement incentive program offered by the Illinois
Municipal Retirement Fund by adopting a resolution or
ordinance; and
WHEREAS, The goal of adopting an early retirement program
is to realize a substantial savings in personnel costs by
offering early retirement incentives to employees who have
accumulated many years of service credit; and
WHEREAS, Implementation of the early retirement program
will provide a budgeting tool to aid in controlling payroll
costs; and
WHEREAS, The (name of governing body) has determined that
the adoption of an early retirement incentive program is in
the best interests of the (name of participating employer);
therefore be it
RESOLVED (ORDAINED) by the (name of governing body) of
(name of participating employer) that:
(1) The (name of participating employer) does hereby
adopt the Illinois Municipal Retirement Fund early retirement
incentive program as provided in Section 7-141.1 of the
Illinois Pension Code. The early retirement incentive
program shall take effect on (date).
(2) In order to help achieve a true cost savings, a
person who retires under the early retirement incentive
program shall lose those incentives if he or she later
accepts employment with any IMRF employer in a position for
which participation in IMRF is required or is elected by the
employee.
(3) In order to utilize an early retirement incentive as
a budgeting tool, the (name of participating employer) will
use its best efforts either to limit the number of employees
who replace the employees who retire under the early
retirement program or to limit the salaries paid to the
employees who replace the employees who retire under the
early retirement program.
(4) The effective date of each employee's retirement
under this early retirement program shall be set by (name of
employer) and shall be no earlier than the effective date of
the program and no later than one year after that effective
date; except that the employee may require that the
retirement date set by the employer be no later than the June
30 next occurring after the effective date of the program and
no earlier than the date upon which the employee qualifies
for retirement.
(5) To be eligible for the early retirement incentive
under this Section, the employee must have attained age 50
and have at least 20 years of creditable service by his or
her retirement date.
(6) The (clerk or secretary) shall promptly file a
certified copy of this resolution (ordinance) with the Board
of Trustees of the Illinois Municipal Retirement Fund.
CERTIFICATION
I, (name), the (clerk or secretary) of the (name of
participating employer) of the County of (name), State of
Illinois, do hereby certify that I am the keeper of the books
and records of the (name of employer) and that the foregoing
is a true and correct copy of a resolution (ordinance) duly
adopted by the (governing body) at a meeting duly convened
and held on (date).
SEAL
(Signature of clerk or secretary)
(c) To be eligible for the benefits provided under an
early retirement incentive program adopted under this
Section, a member must:
(1) be a participating employee of this Fund who,
on the effective date of the program, (i) is in active
payroll status as an employee of a participating employer
that has filed the required ordinance or resolution with
the Board, (ii) is on layoff status from such a position
with a right of re-employment or recall to service, (iii)
is on a leave of absence from such a position, or (iv) is
on disability but has not been receiving benefits under
Section 7-146 or 7-150 for a period of more than 2 years
from the date of application;
(2) have never previously received a retirement
annuity under this Article or under the Retirement
Systems Reciprocal Act using service credit established
under this Article;
(3) (blank); file with the Board within 60 days of
the effective date of the program an application
requesting the benefits provided in this Section;
(4) have at least 20 years of creditable service in
the Fund by the date of retirement, without the use of
any creditable service established under this Section;
(5) have attained age 50 by the date of retirement,
without the use of any age enhancement received under
this Section; and
(6) be eligible to receive a retirement annuity
under this Article by the date of retirement, for which
purpose the age enhancement and creditable service
established under this Section may be considered.
(d) The employer shall determine the retirement date for
each employee participating in the early retirement program
adopted under this Section. The retirement date shall be no
earlier than the effective date of the program and no later
than one year after that effective date, except that the
employee may require that the retirement date set by the
employer be no later than the June 30 next occurring after
the effective date of the program and no earlier than the
date upon which the employee qualifies for retirement. The
employer shall give each employee participating in the early
retirement program at least 30 days written notice of the
employee's designated retirement date, unless the employee
waives this notice requirement.
(e) An eligible person may establish up to 5 years of
creditable service under this Section. In addition, for each
period of creditable service established under this Section,
a person shall have his or her age at retirement deemed
enhanced by an equivalent period.
The creditable service established under this Section may
be used for all purposes under this Article and the
Retirement Systems Reciprocal Act, except for the computation
of final rate of earnings and the determination of earnings,
salary, or compensation under this or any other Article of
the Code.
The age enhancement established under this Section may be
used for all purposes under this Article (including
calculation of the reduction imposed under subdivision
(a)1b(iv) of Section 7-142), except for purposes of a
reversionary annuity under Section 7-145 and any
distributions required because of age. The age enhancement
established under this Section may be used in calculating a
proportionate annuity payable by this Fund under the
Retirement Systems Reciprocal Act, but shall not be used in
determining benefits payable under other Articles of this
Code under the Retirement Systems Reciprocal Act.
(f) For all creditable service established under this
Section, the member must pay to the Fund an employee
contribution consisting of 4.5% of the member's highest
annual salary rate used in the determination of the final
rate of earnings for retirement annuity purposes for each
year of creditable service granted under this Section. For
creditable service established under this Section by a person
who is a sheriff's law enforcement employee to be deemed
service as a sheriff's law enforcement employee, the employee
contribution shall be at the rate of 6.5% of highest annual
salary per year of creditable service granted. Contributions
for fractions of a year of service shall be prorated. Any
amounts that are disregarded in determining the final rate of
earnings under subdivision (d)(5) of Section 7-116 (the 125%
rule) shall also be disregarded in determining the required
contribution under this subsection (f).
The employee contribution shall be paid to the Fund as
follows: If the member is entitled to a lump sum payment for
accumulated vacation, sick leave, or personal leave upon
withdrawal from service, the employer shall deduct the
employee contribution from that lump sum and pay the deducted
amount directly to the Fund. If there is no such lump sum
payment or the required employee contribution exceeds the net
amount of the lump sum payment, then the remaining amount
due, at the option of the employee, may either be paid to the
Fund before the annuity commences or deducted from the
retirement annuity in 24 equal monthly installments.
(g) An annuitant who has received any age enhancement or
creditable service under this Section and thereafter accepts
employment with or enters into a personal services contract
with an employer under this Article thereby forfeits that age
enhancement and creditable service. A person forfeiting
early retirement incentives under this subsection (i) must
repay to the Fund that portion of the retirement annuity
already received which is attributable to the early
retirement incentives that are being forfeited, (ii) shall
not be eligible to participate in any future early retirement
program adopted under this Section, and (iii) is entitled to
a refund of the employee contribution paid under subsection
(f). The Board shall deduct the required repayment from the
refund and may impose a reasonable payment schedule for
repaying the amount, if any, by which the required repayment
exceeds the refund amount.
(h) The additional unfunded liability accruing as a
result of the adoption of a program of early retirement
incentives under this Section by an employer shall be
amortized over a period of 10 years beginning on January 1 of
the second calendar year following the calendar year in which
the latest date for beginning to receive a retirement annuity
under the program (as determined by the employer under
subsection (d) of this Section) occurs; except that the
employer may provide for a shorter amortization period (of no
less than 5 years) by adopting an ordinance or resolution
specifying the length of the amortization period and
submitting a certified copy of the ordinance or resolution to
the Fund no later than 6 months after the effective date of
the program. An employer, at its discretion, may accelerate
payments to the Fund.
An employer may provide more than one early retirement
incentive program for its employees under this Section.
However, an employer that has provided an early retirement
incentive program for its employees under this Section may
not provide another early retirement incentive program under
this Section until the liability arising from the earlier
program has been fully paid to the Fund.
(Source: P.A. 89-329, eff. 8-17-95; 90-32, eff. 6-27-97.)
(40 ILCS 5/7-145.1)
Sec. 7-145.1. Alternative annuity for county officers.
(a) The benefits provided in this Section and Section
7-145.2 are available only if the county board has filed with
the Board of the Fund a resolution or ordinance expressly
consenting to the availability of these benefits for its
elected county officers. The county board's consent is
irrevocable with respect to persons participating in the
program, but may be revoked at any time with respect to
persons who have not paid an additional optional contribution
under this Section before the date of revocation.
An elected county officer may elect to establish
alternative credits for an alternative annuity by electing in
writing to make additional optional contributions in
accordance with this Section and procedures established by
the board. These alternative credits are available only for
periods of service as an elected county officer. The elected
county officer may discontinue making the additional optional
contributions by notifying the Fund in writing in accordance
with this Section and procedures established by the board.
Additional optional contributions for the alternative
annuity shall be as follows:
(1) For service as an elected county officer after
the option is elected, an additional contribution of 3%
of salary shall be contributed to the Fund on the same
basis and under the same conditions as contributions
required under Section 7-173.
(2) For service as an elected county officer before
the option is elected, an additional contribution of 3%
of the salary for the applicable period of service, plus
interest at the effective rate from the date of service
to the date of payment, plus any additional amount
required by the county board under paragraph (3). All
payments for past service must be paid in full before
credit is given.
(3) With respect to service as an elected county
officer before the option is elected, if payment is made
after the county board has filed with the Board of the
Fund a resolution or ordinance requiring an additional
contribution under this paragraph, then the contribution
required under paragraph (2) shall include an amount to
be determined by the Fund, equal to the actuarial present
value of the additional employer cost that would
otherwise result from the alternative credits being
established for that service. A county board's
resolution or ordinance requiring additional
contributions under this paragraph (3) is irrevocable.
No additional optional contributions may be made for any
period of service for which credit has been previously
forfeited by acceptance of a refund, unless the refund is
repaid in full with interest at the effective rate from the
date of refund to the date of repayment.
(b) In lieu of the retirement annuity otherwise payable
under this Article, an elected county officer who (1) has
elected to participate in the Fund and make additional
optional contributions in accordance with this Section, (2)
has held and made additional optional contributions with
respect to the same elected county office for at least 8
years, and (3) has attained age 55 with at least 8 years of
service credit (or has attained age 50 with at least 20 years
of service as a sheriff's law enforcement employee) may elect
to have his retirement annuity computed as follows: 3% of
the participant's salary for each of the first 8 years of
service credit, plus 4% of that salary for each of the next 4
years of service credit, plus 5% of that salary for each year
of service credit in excess of 12 years, subject to a maximum
of 80% of that salary.
This formula applies only to service in an elected county
office that the officer held for at least 8 years, and only
to service for which additional optional contributions have
been paid under this Section. If an elected county officer
qualifies to have this formula applied to service in more
than one elected county office, the qualifying service shall
be accumulated for purposes of determining the applicable
accrual percentages, but the salary used for each office
shall be the separate salary calculated for that office, as
defined in subsection (g).
To the extent that the elected county officer has service
credit that does not qualify for this formula, his retirement
annuity will first be determined in accordance with this
formula with respect to the service to which this formula
applies, and then in accordance with the remaining Sections
of this Article with respect to the service to which this
formula does not apply.
(c) In lieu of the disability benefits otherwise payable
under this Article, an elected county officer who (1) has
elected to participate in the Fund, and (2) has become
permanently disabled and as a consequence is unable to
perform the duties of his office, and (3) was making optional
contributions in accordance with this Section at the time the
disability was incurred, may elect to receive a disability
annuity calculated in accordance with the formula in
subsection (b). For the purposes of this subsection, an
elected county officer shall be considered permanently
disabled only if: (i) disability occurs while in service as
an elected county officer and is of such a nature as to
prevent him from reasonably performing the duties of his
office at the time; and (ii) the board has received a written
certification by at least 2 licensed physicians appointed by
it stating that the officer is disabled and that the
disability is likely to be permanent.
(d) Refunds of additional optional contributions shall
be made on the same basis and under the same conditions as
provided under Section 7-166, 7-167 and 7-168. Interest
shall be credited at the effective rate on the same basis and
under the same conditions as for other contributions.
If an elected county officer fails to hold that same
elected county office for at least 8 years, he or she shall
be entitled after leaving office to receive a refund of the
additional optional contributions made with respect to that
office, plus interest at the effective rate.
(e) The plan of optional alternative benefits and
contributions shall be available to persons who are elected
county officers and active contributors to the Fund on or
after November 15, 1994. A person who was an elected county
officer and an active contributor to the Fund on November 15,
1994 but is no longer an active contributor may apply to make
additional optional contributions under this Section at any
time within 90 days after the effective date of this
amendatory Act of 1997; if the person is an annuitant, the
resulting increase in annuity shall begin to accrue on the
first day of the month following the month in which the
required payment is received by the Fund.
(f) For the purposes of this Section and Section
7-145.2, the terms "elected county officer" and "elected
county office" include, but are not limited to: (1) the
county clerk, recorder, treasurer, coroner, assessor (if
elected), auditor, sheriff, and State's Attorney; members of
the county board; and the clerk of the circuit court; and (2)
a person who has been appointed to fill a vacancy in an
office that is normally filled by election on a countywide
basis, for the duration of his or her service in that office.
The terms "elected county officer" and "elected county
office" do not include any officer or office of a county that
has not consented to the availability of benefits under this
Section and Section 7-145.2.
(g) For the purposes of this Section and Section
7-145.2, the term "salary" means the final rate of earnings
for the elected county office held, calculated in a manner
consistent with Section 7-116, but for that office only. If
an elected county officer qualifies to have the formula in
subsection (b) applied to service in more than one elected
county office, a separate salary shall be calculated and
applied with respect to each such office.
(h) The changes to this Section made by this amendatory
Act of the 91st General Assembly apply to persons who first
make an additional optional contribution under this Section
on or after the effective date of this amendatory Act.
(Source: P.A. 90-32, eff. 6-27-97; 91-685, eff. 1-26-00.)
(40 ILCS 5/7-157) (from Ch. 108 1/2, par. 7-157)
Sec. 7-157. Surviving spouse annuities - marriage to
terminate. If a any surviving spouse annuitant marries,
before reaching age 55, the annuity shall be terminated as of
the end of the calendar month following the month in which
the marriage occurs, unless the marriage occurs after
December 31, 2000.
(Source: P.A. 81-618.)
(40 ILCS 5/7-164) (from Ch. 108 1/2, par. 7-164)
Sec. 7-164. Death benefits - Amount. The amount of the
death benefit shall be:
1. Upon the death of an employee with at least one year
of service occurring while in an employment relationship
(including employees drawing disability benefits) with a
participating municipality or participating instrumentality,
an amount equal to the sum of:
(a) The employee's normal, additional and survivor
credits, including interest credited thereto through the
end of the preceding calendar year, but excluding credits
and interest thereon allowed for periods of disability.
(b) An amount equal to the employee's annual final
rate of earnings. An employee who dies as a result of
injuries connected with his duties shall be considered to
have a year of service for purposes of this benefit.
2. Upon the death of an employee with less than 1 year
of service occurring while in the service of any
participating municipality or instrumentality, an amount
equal to the sum of his accumulated normal, additional and
survivor credits on the date of death, excluding those
credits and interest thereon allowed during periods of
disability.
3. Upon the death of an employee who has separated from
service and was not entitled to a retirement annuity on the
date of death, an amount equal to the sum of his accumulated
normal, survivor and additional credits on the date of death
excluding those credits and interest thereon allowed during
periods of disability.
4. Upon the death of an employee in an employment
relationship, or an employee who has service and was entitled
to a retirement annuity on the date of death, when a
surviving spouse or child annuity is awarded, $3,000.
5. Upon the death of an employee, who has separated from
service and was entitled to a retirement annuity on the date
of death, and no surviving spouse or child annuity is
awarded, $3,000 plus an amount equal to his accumulated
normal, survivor and additional credits on the date of death,
excluding those credits and interest earned thereon allowed
during periods of disability.
6. Upon the death of an employee annuitant, $3,000 and,
unless a surviving spouse, child or reversionary annuity is
payable, the sum of (i) the excess of the normal and survivor
credits, excluding those allowed during periods of
disability, which the annuitant had as of the effective date
of his annuity over the total annuities paid pursuant to
paragraph (a) 1 of Section 7-142 to the date of death, plus
(ii) the excess of the additional credits, excluding any such
credits used to create a reversionary annuity, used to
provide the annuity granted pursuant to paragraph (a) 2 of
Section 7-142 over the total annuity payments made pursuant
thereto to the time of death.
7. Upon the death of an annuitant receiving a
reversionary annuity or of a person designated to receive a
reversionary annuity prior to the receipt of such annuity the
sum of the additional credits of the person creating the
reversionary annuity as of the effective date of his own
retirement annuity over the reversionary annuity payments, if
any, made prior to the date of death of such annuitant or
person designated to receive the reversionary annuity.
8. Upon the death of an annuitant receiving a
beneficiary annuity which was effective before January 1,
1986, the excess of the death benefit which was used to
provide the annuity, over the sum of all annuity payments
made to the beneficiary. Upon the death of an annuitant
receiving a beneficiary annuity effective January 1, 1986 or
thereafter, the sum of (i) the excess of the normal and
survivor credits, excluding those allowed during periods of
disability, which the annuitant had as of the effective date
of his annuity over the total annuities paid pursuant to
paragraph (c) of Section 7-165, to date of death, plus (ii)
the excess of the additional credits, excluding any such
credits used to create a reversionary annuity, used to
provide the annuity granted pursuant to paragraph (d) of
Section 7-165 over the total annuity payments made pursuant
thereto to the time of death.
9. Upon the marriage prior to reaching age 55 (except
for a surviving spouse who remarries after December 31, 2000)
or death of a person receiving a surviving spouse annuity,
unless a child annuity is payable, the sum of (i) the excess
of the normal and survivor credits, excluding those credits
and interest thereon allowed during periods of disability,
attributable to the employee at the effective date of the
annuity or date of death, whichever first occurred, over the
total of all annuity payments attributable to paragraph (a) 1
of Section 7-142 made to the employee or surviving spouse
plus (ii) the excess of the additional credits, excluding any
such credits used to create a reversionary annuity or used to
provide the annuity attributable to paragraph (a) 2 of
Section 7-142 over the total of such payments.
10. Upon the marriage, death or attainment of age 18 of
a child receiving a child annuity, if no other child
annuities are payable, the sum of (i) the excess of the
normal and survivor credits excluding those credits and
interest thereon allowed during periods of disability, of the
employee at the effective date of the annuity or date of
death, whichever first occurred, over the total annuity
payments attributable to paragraph (a) 1 of Section 7-142
made to the employee, surviving spouse and children plus (ii)
the excess of the additional credits, excluding any such
credits used to create a reversionary annuity, used to
provide the annuity attributable to paragraph (a) 2 of
Section 7-142 over the total annuity payments made to the
employee, surviving spouse and children, pursuant thereto.
11. Upon the death of the participating employee whose
annuity was suspended upon his return to employment:
a. If a surviving spouse or child annuity is
awarded, $3,000;
b. If no surviving spouse or child annuity is
awarded and he had less than one year's service upon
return, $3,000 plus the excess of the normal, survivor
and additional credits, including interest thereon, but
excluding those allowed during a period of disability, at
the effective date of the suspended annuity, plus those
allowed after his return, over all annuity payments made
to the employee;
c. If no surviving spouse or child annuity is
awarded and he has one year or more of service upon
return, the higher of (a) the payment under subparagraph
b of this paragraph or (b) the payment under paragraph 1
of this Section, taking into consideration only the
service and credits allowed after his return, plus the
excess of the normal, survivor and additional credits,
including interest thereon, excluding those allowed
during periods of disability, at the effective date of
his suspended annuity over all annuity payments made to
the employee.
12. The $3,000 death benefit provided in paragraphs 4
and 6 shall not be payable to beneficiaries of persons who
terminated service prior to September 8, 1971, unless the
payment or agreement for payment provided by Section 7-144.2
of this Article is made prior to the date of death.
13. The increase in certain death benefits from $1,000
to $3,000 provided by this amendatory Act of 1987 shall apply
only to deaths occurring on or after January 1, 1988.
(Source: P.A. 85-941.)
(40 ILCS 5/7-166) (from Ch. 108 1/2, par. 7-166)
Sec. 7-166. Separation benefits - Eligibility.
Separation benefits shall be payable as hereinafter set
forth:
1. Upon separation from the service of all participating
municipalities and instrumentalities thereof and
participating instrumentalities, any participating employee
upon the termination of his participation as a participating
employee who, on the date of application for such benefit, is
not entitled to a retirement annuity shall be entitled to a
separation benefit;
2. Upon separation from the service of all participating
municipalities and instrumentalities thereof and
participating instrumentalities, any participating employee
upon the termination of his participation as a participating
employee who, on the date of application for such benefit, is
entitled to a retirement annuity of less than $30 per month
for life may elect to take a separation benefit in lieu of
the retirement annuity.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-167) (from Ch. 108 1/2, par. 7-167)
Sec. 7-167. Separation benefits - Payment. Separation
benefits shall be paid in the form of a single cash sum as
soon as practicable after receipt by the board of:
1. a written application by the employee for such
benefits; and
2. written notice from the last employing
participating municipality or instrumentality thereof or
participating instrumentality, certifying that such
participating employee has separated from service
terminated his participation.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-184) (from Ch. 108 1/2, par. 7-184)
Sec. 7-184. To determine prior service.
To determine the length of prior service from such
information as is available. Any such determination shall be
conclusive as to any such period of service, unless within 2
years of the issuance of the first individual statement to an
employee, the board reconsiders the case and changes the
determination.
The change to this Section made by this amendatory Act of
the 91st General Assembly applies without regard to whether
the individual is in service on or after the effective date
of this amendatory Act.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-211) (from Ch. 108 1/2, par. 7-211)
Sec. 7-211. Authorizations.
(a) Each participating municipality and instrumentality
thereof and each participating instrumentality shall:
1. Deduct all normal and additional contributions
and contributions for federal Social Security taxes as
required by the Social Security Enabling Act from each
payment of earnings payable to each participating
employee who is entitled to any earnings from such
municipality or instrumentality thereof or participating
instrumentality, and to remit all such contributions
immediately to the board; and
2. Pay to the board contributions required by this
Article.
(b) Each participating employee shall, by virtue of the
payment of contributions to this fund, receive a vested
interest in the annuities and benefits provided in this
Article and in consideration of such vested interest shall be
deemed to have agreed and authorized the deduction from
earnings of all contributions payable to this fund in
accordance with this Article.
(c) Payment of earnings less the amounts of
contributions provided in this Article and in the Social
Security Enabling Act shall be a full and complete discharge
of all claims for payment for services rendered by any
employee during the period covered by any such payment.
(d) Any covered annuitant may authorize the withholding
of all or a portion of his or her annuity, for the payment of
premiums on group accident and health insurance provided
pursuant to Section 7-199.1. The annuitant may revoke this
authorization at any time.
(Source: P.A. 84-812.)
(40 ILCS 5/7-224 new)
Sec. 7-224. Section 415 limitations. Notwithstanding
any other provisions of this Article, the combined benefits
and contributions provided to any participating employee by
all plans of any participating municipality and its
instrumentalities and any participating instrumentality shall
not exceed the limitations specified in Section 415(b), (c),
and (e) of the Internal Revenue Code of 1986. If a
participating employee's benefits or contributions under this
Article, combined with those under any other plan of the
participating municipality and its instrumentalities or
participating instrumentality, would otherwise violate those
limitations, the benefits and contributions under the other
plan shall be reduced, rather than the benefits and
contributions provided under this Article. To the extent
that the other plan fails to limit such benefits and
contributions, that plan shall be disqualified.
(40 ILCS 5/8-125) (from Ch. 108 1/2, par. 8-125)
Sec. 8-125. Annuity.
"Annuity": Equal monthly payments for life, unless
otherwise specified.
For annuities taking effect before January 1, 1998, the
first payment shall be due and payable one month after the
occurrence of the event upon which payment of the annuity
depends, and the last payment shall be due and payable as of
the date of the annuitant's death and shall be prorated from
the date of the last preceding payment to the date of death
for deaths that occur on or before March 31, 2000. All
payments made on or after April 1, 2000 shall be made on the
first day of the calendar month and the last payment shall be
made on the first day of the calendar month in which the
annuity payment period ends. All payments for months
beginning with April of 2000 shall be for the entire calendar
month, without proration. A pro rata amount shall be paid for
that part of the month from the March 2000 annuity payment
date through March 31, 2000.
For annuities taking effect on or after January 1, 1998,
payments shall be made as of the first day of the calendar
month, with the first payment to be made as of the first day
of the calendar month coincidental with or next following the
first day of the annuity payment period, and the last payment
to be made as of the first day of the calendar month in which
the annuity payment period ends. For annuities taking effect
on or after January 1, 1998, all payments shall be for the
entire calendar month, without proration.
For the purposes of this Section, the "annuity payment
period" means the period beginning on the day after the
occurrence of the event upon which payment of the annuity
depends, and ending on the day upon which the death of the
annuitant or other event terminating the annuity occurs.
(Source: P.A. 90-31, eff. 6-27-97.)
(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 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 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% 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 50-51 52-54 55-57 58-60 61-63 64-66 67-69 70 &
Over
30 or
more
years
younger 3.03 2.56 2.18 1.84 1.55 1.29 1.08 0.91
25-29
years
younger 3.16 2.68 2.29 1.94 1.63 1.37 1.15 0.97
20-24
years
younger 3.35 2.85 2.44 2.07 1.75 1.48 1.25 1.06
15-19
years
younger 3.60 3.08 2.65 2.26 1.92 1.63 1.39 1.19
10-14
years
younger 3.96 3.40 2.94 2.53 2.16 1.85 1.59 1.37
5-9
years
younger 4.46 3.84 3.35 2.90 2.51 2.16 1.88 1.64
0-4
years
younger 5.15 4.47 3.93 3.44 3.00 2.61 2.29 2.02
1-5
years
older 6.12 5.36 4.76 4.21 3.71 3.26 2.88 2.56
6-10
years
older 7.48 6.61 5.93 5.30 4.71 4.16 3.70 3.29
11-15
years
older 9.37 8.35 7.58 6.83 6.11 5.40 4.82 4.32
16-20
years
older 11.99 10.78 9.84 8.93 8.02 7.13 6.43 5.87
21-25
years
older 15.59 14.06 12.91 11.82 10.73 9.66 8.88 8.35
26-30
years
older 20.42 18.49 17.15 15.96 14.80 13.65 12.97 12.82
31 or
more
years
older 27.07 24.72 23.34 22.32 21.45 20.62 20.85 23.28
(Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
(40 ILCS 5/8-153) (from Ch. 108 1/2, par. 8-153)
Sec. 8-153. Widow's remarriage marriage to terminate
annuity. A widow's annuity shall terminate when she remarries
if the marriage takes place before the date 60 days after the
effective date of this amendatory Act of the 91st General
Assembly. If a widow remarries 60 or more days after the
effective date of this amendatory Act of the 91st General
Assembly, the widow's annuity shall continue without
interruption.
When a widow dies, if she has not received, in the form
of an annuity, an amount equal to the total credited from
employee's contributions and applied for the widow's annuity,
the difference between such annuity credits and the amount
received by her shall be refunded to her, provided, that if a
reversionary annuity is payable to her, or to any other
person designated by the employee, such amount shall not be
refunded but the reversionary annuity shall be payable. If
there is any child of the employee who is under 18 years of
age, the part of any such amount that is required to pay an
annuity to the child shall be transferred to the child's
annuity reserve. In making refunds under this Section, no
interest shall be paid upon either the total of annuity
payments made or the amounts subject to refund. Any refund
shall be paid according to the provisions of Section 8-170.
A subsequent change in marital status of the widow shall
not effect any restoration of any rights under this Article
except in the case of declaration of invalidity of a
subsequent marriage wherein the declaration of invalidity is
based upon charges of bigamy by the subsequent husband or the
legal disability of the subsequent husband to enter into a
marriage.
(Source: P.A. 83-706.)
(40 ILCS 5/8-171) (from Ch. 108 1/2, par. 8-171)
Sec. 8-171. Refund in lieu of annuity. In lieu of an
annuity, an employee who withdraws and whose annuity would
amount to less than $800 $300 a month for life, may elect to
receive a refund of his accumulated contributions for annuity
purposes, based on the amounts contributed by him.
The widow of any employee, eligible for annuity upon the
death of her husband, whose widow's annuity would amount to
less than $800 $300 a month for life, may, in lieu of widow's
annuity, elect to receive a refund of the accumulated
contributions for annuity purposes, based on the amounts
contributed by her deceased employee husband, but reduced by
any amounts theretofore paid to him in the form of an annuity
or refund out of such accumulated contributions.
Accumulated contributions shall mean the amounts -
including the interest credited thereon - contributed by the
employee for age and service and widow's annuity to the date
of his withdrawal or death, whichever first occurs, including
any amounts contributed for him as salary deductions while
receiving duty disability benefits, and, if not otherwise
included, any accumulations from sums contributed by him and
applied to any pension fund superseded by this fund.
The acceptance of such refund in lieu of widow's annuity,
on the part of a widow, shall not deprive a child or children
of the right to receive a child's annuity as provided for in
Sections 8-158 and 8-159 of this Article, and neither shall
the payment of a child's annuity in the case of such refund
to a widow reduce the amount herein set forth as refundable
to such widow electing a refund in lieu of widow's annuity.
(Source: P.A. 86-1488.)
(40 ILCS 5/8-244) (from Ch. 108 1/2, par. 8-244)
Sec. 8-244. Annuities, etc., exempt.
(a) All annuities, refunds, pensions, and disability
benefits granted under this Article, shall be exempt from
attachment or garnishment process and shall not be seized,
taken, subjected to, detained, or levied upon by virtue of
any judgment, or any process or proceeding whatsoever issued
out of or by any court in this State, for the payment and
satisfaction in whole or in part of any debt, damage, claim,
demand, or judgment against any annuitant, pensioner,
participant, refund applicant, or other beneficiary
hereunder.
(b) No annuitant, pensioner, refund applicant, or other
beneficiary shall have any right to transfer or assign his
annuity, refund, or disability benefit or any part thereof by
way of mortgage or otherwise, except that:
(1) an annuitant or pensioner who elects or has
elected to participate in a non-profit group hospital
care plan or group medical surgical plan may with the
approval of the board and in conformity with its
regulations authorize the board to withhold from the
pension or annuity the current premium for such coverage
and pay such premium to the organization underwriting
such plan;
(2) in the case of refunds, a participant may
pledge by assignment, power of attorney, or otherwise, as
security for a loan from a legally operating credit union
making loans only to participants in certain public
employee pension funds described in the Illinois Pension
Code, all or part of any refund which may become payable
to him in the event of his separation from service; and
(3) the board, in its discretion, may pay to the
wife of any annuitant, pensioner, refund applicant, or
disability beneficiary, such an amount out of her
husband's annuity pension, refund, or disability benefit
as any court of competent jurisdiction may order, or such
an amount as the board may consider necessary for the
support of his wife or children, or both in the event of
his disappearance or unexplained absence or of his
failure to support such wife or children.
(c) The board may retain out of any future annuity,
pension, refund or disability benefit payments, such amount,
or amounts, as it may require for the repayment of any moneys
paid to any annuitant, pensioner, refund applicant, or
disability beneficiary through misrepresentation, fraud or
error. Any such action of the board shall relieve and
release the board and the fund from any liability for any
moneys so withheld.
(d) Whenever an annuity or disability benefit is payable
to a minor or to a person certified by a medical doctor
adjudged to be under legal disability, the board, in its
discretion and when it is in to the best interest of the
person concerned, may waive guardianship proceedings and pay
the annuity or benefit to the person providing or caring for
the minor or and to the wife, parent or blood relative
providing or caring for the person under legal disability.
In the event that a person certified by a medical doctor
to be under legal disability (i) has no spouse, blood
relative, or other person providing or caring for him or
her, (ii) has no guardian of his or her estate, and (iii) is
confined to a Medicare approved, State certified nursing home
or to a publicly owned and operated nursing home, hospital,
or mental institution, the Board may pay any benefit due that
person to the nursing home, hospital, or mental institution,
to be used for the sole benefit of the person under legal
disability.
Payment in accordance with this subsection to a person,
nursing home, hospital, or mental institution for the benefit
of a minor or person under legal disability shall be an
absolute discharge of the Fund's liability with respect to
the amount so paid. Any person, nursing home, hospital, or
mental institution accepting payment under this subsection
shall notify the Fund of the death or any other relevant
change in the status of the minor or person under legal
disability.
(Source: P.A. 86-1488.)
(40 ILCS 5/9-149) (from Ch. 108 1/2, par. 9-149)
Sec. 9-149. Widow's remarriage marriage to terminate
annuity. A widow's annuity shall terminate when she
remarries if the marriage takes place before the date 60 days
after the effective date of this amendatory Act of the 91st
General Assembly. If a widow remarries 60 or more days after
the effective date of this amendatory Act of the 91st General
Assembly, the widow's annuity shall continue without
interruption.
When a widow dies, if she has not received, in the form
of an annuity, an amount equal to the total sums accumulated
and credited from the employee's contributions and applied
for the widow's annuity, the difference between such
accumulated annuity credits and the amount received by her in
annuity payments shall be refunded to her; provided that if a
reversionary annuity is payable to her or to any other person
designated by the employee, this such aforesaid amount shall
not be refunded, but the reversionary annuity shall be
payable.
(Source: P.A. 81-1536.)
(40 ILCS 5/9-194) (from Ch. 108 1/2, par. 9-194)
Sec. 9-194. To invest the reserves. To invest the
reserves of the fund in accordance with Sections 1-109,
1-109.1, 1-109.2, 1-110, 1-111, 1-114, and 1-115 of this Act.
Investments made in accordance with Section 1-113 shall be
deemed to be prudent the provisions set forth in Section
1-113 of this Act.
The retirement board may sell any security held by it at
any time it deems it desirable.
The board may enter into agreements and execute documents
that it determines to be necessary to complete any investment
transaction.
All investments shall be clearly held and accounted for
to indicate ownership by the board. The board may direct the
registration of securities in its own name or in the name of
a nominee created for the express purpose of registration of
securities by a savings and loan association or national or
State bank or trust company authorized to conduct a trust
business in the State of Illinois.
Investments shall be carried at cost or at a value
determined in accordance with generally accepted accounting
principles.
(Source: P.A. 82-960.)
(40 ILCS 5/11-124) (from Ch. 108 1/2, par. 11-124)
Sec. 11-124. Annuity.
"Annuity": Equal monthly payments for life, unless
terminated earlier under Section 11-148, 11-152, 11-153, or
11-230.
For annuities taking effect before January 1, 1998, the
first payment shall be due and payable one month after the
occurrence of the event upon which payment of the annuity
depends. Until August 1, 1999, and payment shall be made
for any part of a monthly period in which death of the
annuitant occurs. Beginning August 1, 1999, all payments
shall be made on the first day of the calendar month and
shall be for the entire calendar month, without proration.
The last payment shall be made on the first day of the
calendar month in which the annuity payment period ends. A
pro rata amount shall be paid for that part of the month from
the July 1999 annuity payment date through July 31, 1999.
For annuities taking effect on or after January 1, 1998,
payments shall be made as of the first day of the calendar
month, with the first payment to be made as of the first day
of the calendar month coincidental with or next following the
first day of the annuity payment period, and the last payment
to be made as of the first day of the calendar month in which
the annuity payment period ends. For annuities taking effect
on or after January 1, 1998, all payments shall be for the
entire calendar month, without proration.
For the purposes of this Section, the "annuity payment
period" means the period beginning on the day after the
occurrence of the event upon which payment of the annuity
depends, and ending on the day upon which the death of the
annuitant or other event terminating the annuity occurs.
(Source: P.A. 90-31, eff. 6-27-97.)
(40 ILCS 5/11-134.2) (from Ch. 108 1/2, par. 11-134.2)
Sec. 11-134.2. 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 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 per 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% 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 11-124.
(e) The increases in annuity provided in Section
11-134.1 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 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 50-51 52-54 55-57 58-60 61-63 64-66 67-69 70 &
Over
30 or
more
years
younger 3.03 2.56 2.18 1.84 1.55 1.29 1.08 0.91
25-29
years
younger 3.16 2.68 2.29 1.94 1.63 1.37 1.15 0.97
20-24
years
younger 3.35 2.85 2.44 2.07 1.75 1.48 1.25 1.06
15-19
years
younger 3.60 3.08 2.65 2.26 1.92 1.63 1.39 1.19
10-14
years
younger 3.96 3.40 2.94 2.53 2.16 1.85 1.59 1.37
5-9
years
younger 4.46 3.84 3.35 2.90 2.51 2.16 1.88 1.64
0-4
years
younger 5.15 4.47 3.93 3.44 3.00 2.61 2.29 2.02
1-5
years
older 6.12 5.36 4.76 4.21 3.71 3.26 2.88 2.56
6-10
years
older 7.48 6.61 5.93 5.30 4.71 4.16 3.70 3.29
11-15
years
older 9.37 8.35 7.58 6.83 6.11 5.40 4.82 4.32
16-20
years
older 11.99 10.78 9.84 8.93 8.02 7.13 6.43 5.87
21-25
years
older 15.59 14.06 12.91 11.82 10.73 9.66 8.88 8.35
26-30
years
older 20.42 18.49 17.15 15.96 14.80 13.65 12.97 12.82
31 or
more
years
older 27.07 24.72 23.34 22.32 21.45 20.62 20.85 23.28
(Source: P.A. 90-31, eff. 6-27-97; 90-766, eff. 8-14-98.)
(40 ILCS 5/11-148) (from Ch. 108 1/2, par. 11-148)
Sec. 11-148. Widow's remarriage to terminate annuity. A
widow's annuity shall terminate when she remarries if the
marriage takes place before the date 60 days after the
effective date of this amendatory Act of the 91st General
Assembly. If a widow remarries 60 or more days after the
effective date of this amendatory Act of the 91st General
Assembly, the widow's annuity shall continue without
interruption.
When a widow dies, if she has not received, in the form
of an annuity, an amount equal to the total sum accumulated
to his credit from employee's contributions and applied for
the widow's annuity, the difference between such accumulated
annuity credits and the amount received by her in annuity
payments shall be refunded to her, provided, that if a
reversionary annuity is payable if to her, or to any other
person designated by the employee, such aforesaid amount
shall not be refunded but the reversionary annuity shall be
payable. If there is any child of the employee who is under
18 years of age, the part of any such amount that is required
to pay an annuity to the child shall be transferred to the
child's annuity reserve. In making refunds under this
Section, no interest shall be paid upon either the total of
annuity payments made or the amounts subject to refund. Any
refund shall be paid according to the provisions of Section
11-166.
A subsequent change in marital status of the widow shall
not affect any restoration of any rights under this Article
except in the case of declaration of invalidity of a
subsequent marriage wherein the declaration of invalidity is
based upon charges of bigamy by the subsequent husband or the
legal disability of the subsequent husband to enter into a
marriage.
(Source: P.A. 83-706.)
(40 ILCS 5/11-167) (from Ch. 108 1/2, par. 11-167)
Sec. 11-167. Refunds in lieu of annuity. In lieu of an
annuity, an employee who withdraws, and whose annuity would
amount to less than $800 $300 a month for life may elect to
receive a refund of the total sum accumulated to his credit
from employee contributions for annuity purposes.
The widow of any employee, eligible for annuity upon the
death of her husband, whose annuity would amount to less than
$800 $300 a month for life, may, in lieu of a widow's
annuity, elect to receive a refund of the accumulated
contributions for annuity purposes, based on the amounts
contributed by her deceased employee husband, but reduced by
any amounts theretofore paid to him in the form of an annuity
or refund out of such accumulated contributions.
Accumulated contributions shall mean the amounts
including interest credited thereon contributed by the
employee for age and service and widow's annuity to the date
of his withdrawal or death, whichever first occurs, and
including the accumulations from any amounts contributed for
him as salary deductions while receiving duty disability
benefits; provided that such amounts contributed by the city
after December 31, 1983 while the employee is receiving duty
disability benefits.
The acceptance of such refund in lieu of widow's annuity,
on the part of a widow, shall not deprive a child or children
of the right to receive a child's annuity as provided for in
Sections 11-153 and 11-154 of this Article, and neither shall
the payment of a child's annuity in the case of such refund
to a widow reduce the amount herein set forth as refundable
to such widow electing a refund in lieu of widow's annuity.
(Source: P.A. 90-655, eff. 7-30-98.)
(40 ILCS 5/11-181) (from Ch. 108 1/2, par. 11-181)
Sec. 11-181. Board created. A board of 8 members shall
constitute the board of trustees authorized to carry out the
provisions of this Article. The board shall be known as the
Retirement Board of the Laborers' and Retirement Board
Employees' Annuity and Benefit Fund of the city. The board
shall consist of 5 persons appointed and 2 employees and one
annuitant elected in the manner hereinafter prescribed.
The appointed members of the board shall be appointed as
follows:
One member shall be appointed by the comptroller of the
city, who may be himself or anyone chosen from among
employees of the city who are versed in the affairs of the
comptroller's office; one member shall be appointed by the
City Treasurer of the city, who may be himself or a person
chosen from among employees of the city who are versed in the
affairs of the City Treasurer's office; one member shall be
an employee of the city appointed by the president of the
local labor organization representing a majority of the
employees participating in the Fund; and 2 members shall be
appointed by the civil service commission or the Department
of Personnel of the city from among employees of the city who
are versed in the affairs of the civil service commission's
office or the Department of Personnel.
The member appointed by the comptroller shall hold office
for a term ending on December 1st of the first year following
the year of appointment. The member appointed by the City
Treasurer shall hold office for a term ending on December 1st
of the second year following the year of appointment. The
member appointed by the civil service commission shall hold
office for a term ending on the first day in the month of
December of the third year following the year of appointment.
The additional member appointed by the civil service
commission under this amendatory Act of 1998 shall hold
office for an initial term ending on December 1, 2000, and
the member appointed by the labor organization president
shall hold office for an initial term ending on December 1,
2001. Thereafter each appointive member shall be appointed
by the officer or body that appointed his predecessor, for a
term of 3 years.
The 2 employee members of the board shall be elected as
follows:
Within 30 days from and after the appointive members have
been appointed and have qualified, the appointive members
shall arrange for and hold an election.
One employee shall be elected for a term ending on
December 1st of the first year next following the effective
date; one for a term ending on December 1st of the following
year.
The initial annuitant member shall be appointed by the
other members of the board for an initial term ending on
December 1, 1999. Thereafter, The annuitant member elected
in 1999 shall be deemed to have been elected for a 3-year
2-year term ending on December 1, 2002. Thereafter, the
annuitant member shall be elected for a 3-year term ending on
December 1st of the third year following the election 1st of
the next odd-numbered year.
(Source: P.A. 90-766, eff. 8-14-98.)
(40 ILCS 5/11-182) (from Ch. 108 1/2, par. 11-182)
Sec. 11-182. Board elections; qualification; oath.
(a) In each year, the board shall conduct a regular
election, under rules adopted by it, at least 30 days prior
to the expiration of the term of the employee member whose
term next expires, for the election of a successor for a term
of 3 2 years. Each employee member and his or her successor
shall be an employee who holds a position by certification
and appointment as a result of competitive civil service
examination as distinguished from temporary appointment, or
so holds a position which is not exempt from the classified
service or the personnel ordinance of a city that has adopted
a career service ordinance, for a period of not less than 5
years prior to date of election. At any such election, all
persons who are employees at the time such election is held
shall have a right to vote. The ballot shall be of secret
character.
(b) In each odd-numbered year, The board shall conduct a
regular election, under rules adopted by it, at least 30 days
prior to the expiration of the term of the annuitant member,
for the election of a successor for a term of 3 2 years.
Each annuitant member and his or her successor shall be a
former employee receiving a retirement (age and service or
prior service) annuity from the Fund. At any such election,
all persons who are receiving a retirement (age and service
or prior service) annuity from the Fund at the time the
election is held have a right to vote. The ballot shall be
of secret character.
(c) Any appointive or elective member of the board shall
hold office until his or her successor is elected and
qualified.
Any person elected or appointed as a member of the board
shall qualify for the office by taking an oath of office to
be administered by the city clerk or any person designated by
the city clerk. A copy thereof shall be kept in the office
of the city clerk.
Any appointment shall be in writing and the written
instrument shall be filed with the oath.
(Source: P.A. 90-766, eff. 8-14-98.)
(40 ILCS 5/11-223) (from Ch. 108 1/2, par. 11-223)
Sec. 11-223. Annuities, etc., exempt.
(a) All annuities, refunds, pensions, and disability
benefits granted under this Article shall be exempt from
attachment or garnishment process and shall not be seized,
taken, subjected to, detained, or levied upon by virtue of
any judgment, or any process or proceeding whatsoever issued
out of or by any court in this State, for the payment and
satisfaction in whole or in part of any debt, damage, claim,
demand, or judgment against any annuitant, participant,
refund applicant, or other beneficiary hereunder.
No annuitant, refund applicant, or other beneficiary may
transfer or assign his annuity, refund, or disability benefit
or any part thereof by way of mortgage or otherwise, except
as provided in Section 11-223.1, and except in the case of
refunds, when a participant has pledged by assignment, power
of attorney, or otherwise, as security for a loan from a
legally operating credit union making loans only to
participants in certain public employee pension funds
described in the Illinois Pension Code, all or part of any
refund which may become payable to him in the event of his
separation from service. The board in its discretion may,
however, pay to the wife or to the unmarried child under 18
years of age of any annuitant, refund applicant, or
disability beneficiary, such an amount out of her husband's
annuity refund, or disability benefit as any court may order,
or such an amount as the board may consider necessary for the
support of his wife or children or both in the event of his
disappearance or unexplained absence or of his failure to
support such wife or children.
(b) The board may retain out of any future annuity,
refund, or disability benefit payments, such amount, or
amounts as it may require for the repayment of any moneys
paid to any annuitant, pensioner, refund applicant, or
disability beneficiary through misrepresentation, fraud or
error. Any such action of the board shall relieve and
release the board and the fund from any liability for any
moneys so withheld.
(c) Whenever an annuity or disability benefit is payable
to a minor or to a person certified by a medical doctor
adjudged to be under legal disability, the board, in its
discretion and when it is in to the best interest of the
person concerned, may waive guardianship or conservatorship
proceedings and pay the annuity or benefit to the person
providing or caring for the minor or and to the wife, parent
or blood relative providing or caring for the person under
legal disability.
In the event that a person certified by a medical doctor
to be under legal disability (i) has no spouse, blood
relative, or other person providing or caring for him or
her, (ii) has no guardian of his or her estate, and (iii) is
confined to a Medicare approved, State certified nursing home
or to a publicly owned and operated nursing home, hospital,
or mental institution, the Board may pay any benefit due that
person to the nursing home, hospital, o