Sen. Heather A. Steans

Filed: 5/16/2012

 

 


 

 


 
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1
AMENDMENT TO HOUSE BILL 4996

2    AMENDMENT NO. ______. Amend House Bill 4996, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Pension Code is amended by
6changing Sections 15-113, 15-135, 15-136, 15-136.4, 15-139,
715-153.2, and 15-186 and by adding Sections 15-139.5 and
815-168.2 as follows:
 
9    (40 ILCS 5/15-113)  (from Ch. 108 1/2, par. 15-113)
10    Sec. 15-113. Service. "Service": The periods defined in
11Sections 15-113.1 through 15-113.9 and Section 15-113.11.
12(Source: P.A. 84-1472.)
 
13    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
14    Sec. 15-135. Retirement annuities - Conditions.
15    (a) A participant who retires in one of the following

 

 

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1specified years with the specified amount of service is
2entitled to a retirement annuity at any age under the
3retirement program applicable to the participant:
4        35 years if retirement is in 1997 or before;
5        34 years if retirement is in 1998;
6        33 years if retirement is in 1999;
7        32 years if retirement is in 2000;
8        31 years if retirement is in 2001;
9        30 years if retirement is in 2002 or later.
10    A participant with 8 or more years of service after
11September 1, 1941, is entitled to a retirement annuity on or
12after attainment of age 55.
13    A participant with at least 5 but less than 8 years of
14service after September 1, 1941, is entitled to a retirement
15annuity on or after attainment of age 62.
16    A participant who has at least 25 years of service in this
17system as a police officer or firefighter is entitled to a
18retirement annuity on or after the attainment of age 50, if
19Rule 4 of Section 15-136 is applicable to the participant.
20    (b) The annuity payment period shall begin on the date
21specified by the participant or the recipient of a disability
22retirement annuity submitting a written application, which
23date shall not be prior to termination of employment or more
24than one year before the application is received by the board;
25however, if the participant is not an employee of an employer
26participating in this System or in a participating system as

 

 

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1defined in Article 20 of this Code on April 1 of the calendar
2year next following the calendar year in which the participant
3attains age 70 1/2, the annuity payment period shall begin on
4that date regardless of whether an application has been filed.
5    (c) An annuity is not payable if the amount provided under
6Section 15-136 is less than $10 per month.
7(Source: P.A. 92-749, eff. 8-2-02.)
 
8    (40 ILCS 5/15-136)  (from Ch. 108 1/2, par. 15-136)
9    Sec. 15-136. Retirement annuities - Amount. The provisions
10of this Section 15-136 apply only to those participants who are
11participating in the traditional benefit package or the
12portable benefit package and do not apply to participants who
13are participating in the self-managed plan.
14    (a) The amount of a participant's retirement annuity,
15expressed in the form of a single-life annuity, shall be
16determined by whichever of the following rules is applicable
17and provides the largest annuity:
18    Rule 1: The retirement annuity shall be 1.67% of final rate
19of earnings for each of the first 10 years of service, 1.90%
20for each of the next 10 years of service, 2.10% for each year
21of service in excess of 20 but not exceeding 30, and 2.30% for
22each year in excess of 30; or for persons who retire on or
23after January 1, 1998, 2.2% of the final rate of earnings for
24each year of service.
25    Rule 2: The retirement annuity shall be the sum of the

 

 

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1following, determined from amounts credited to the participant
2in accordance with the actuarial tables and the effective
3prescribed rate of interest in effect at the time the
4retirement annuity begins:
5        (i) the normal annuity which can be provided on an
6    actuarially equivalent basis, by the accumulated normal
7    contributions as of the date the annuity begins;
8        (ii) an annuity from employer contributions of an
9    amount equal to that which can be provided on an
10    actuarially equivalent basis from the accumulated normal
11    contributions made by the participant under Section
12    15-113.6 and Section 15-113.7 plus 1.4 times all other
13    accumulated normal contributions made by the participant;
14    and
15        (iii) the annuity that can be provided on an
16    actuarially equivalent basis from the entire contribution
17    made by the participant under Section 15-113.3.
18    With respect to a police officer or firefighter who retires
19on or after August 14, 1998, the accumulated normal
20contributions taken into account under clauses (i) and (ii) of
21this Rule 2 shall include the additional normal contributions
22made by the police officer or firefighter under Section
2315-157(a).
24    The amount of a retirement annuity calculated under this
25Rule 2 shall be computed solely on the basis of the
26participant's accumulated normal contributions, as specified

 

 

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1in this Rule and defined in Section 15-116. Neither an employee
2or employer contribution for early retirement under Section
315-136.2 nor any other employer contribution shall be used in
4the calculation of the amount of a retirement annuity under
5this Rule 2.
6    This amendatory Act of the 91st General Assembly is a
7clarification of existing law and applies to every participant
8and annuitant without regard to whether status as an employee
9terminates before the effective date of this amendatory Act.
10    This Rule 2 does not apply to a person who first becomes an
11employee under this Article on or after July 1, 2005.
12    Rule 3: The retirement annuity of a participant who is
13employed at least one-half time during the period on which his
14or her final rate of earnings is based, shall be equal to the
15participant's years of service not to exceed 30, multiplied by
16(1) $96 if the participant's final rate of earnings is less
17than $3,500, (2) $108 if the final rate of earnings is at least
18$3,500 but less than $4,500, (3) $120 if the final rate of
19earnings is at least $4,500 but less than $5,500, (4) $132 if
20the final rate of earnings is at least $5,500 but less than
21$6,500, (5) $144 if the final rate of earnings is at least
22$6,500 but less than $7,500, (6) $156 if the final rate of
23earnings is at least $7,500 but less than $8,500, (7) $168 if
24the final rate of earnings is at least $8,500 but less than
25$9,500, and (8) $180 if the final rate of earnings is $9,500 or
26more, except that the annuity for those persons having made an

 

 

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1election under Section 15-154(a-1) shall be calculated and
2payable under the portable retirement benefit program pursuant
3to the provisions of Section 15-136.4.
4    Rule 4: A participant who is at least age 50 and has 25 or
5more years of service as a police officer or firefighter, and a
6participant who is age 55 or over and has at least 20 but less
7than 25 years of service as a police officer or firefighter,
8shall be entitled to a retirement annuity of 2 1/4% of the
9final rate of earnings for each of the first 10 years of
10service as a police officer or firefighter, 2 1/2% for each of
11the next 10 years of service as a police officer or
12firefighter, and 2 3/4% for each year of service as a police
13officer or firefighter in excess of 20. The retirement annuity
14for all other service shall be computed under Rule 1.
15    For purposes of this Rule 4, a participant's service as a
16firefighter shall also include the following:
17        (i) service that is performed while the person is an
18    employee under subsection (h) of Section 15-107; and
19        (ii) in the case of an individual who was a
20    participating employee employed in the fire department of
21    the University of Illinois's Champaign-Urbana campus
22    immediately prior to the elimination of that fire
23    department and who immediately after the elimination of
24    that fire department transferred to another job with the
25    University of Illinois, service performed as an employee of
26    the University of Illinois in a position other than police

 

 

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1    officer or firefighter, from the date of that transfer
2    until the employee's next termination of service with the
3    University of Illinois.
4    Rule 5: The retirement annuity of a participant who elected
5early retirement under the provisions of Section 15-136.2 and
6who, on or before February 16, 1995, brought administrative
7proceedings pursuant to the administrative rules adopted by the
8System to challenge the calculation of his or her retirement
9annuity shall be the sum of the following, determined from
10amounts credited to the participant in accordance with the
11actuarial tables and the prescribed rate of interest in effect
12at the time the retirement annuity begins:
13        (i) the normal annuity which can be provided on an
14    actuarially equivalent basis, by the accumulated normal
15    contributions as of the date the annuity begins; and
16        (ii) an annuity from employer contributions of an
17    amount equal to that which can be provided on an
18    actuarially equivalent basis from the accumulated normal
19    contributions made by the participant under Section
20    15-113.6 and Section 15-113.7 plus 1.4 times all other
21    accumulated normal contributions made by the participant;
22    and
23        (iii) an annuity which can be provided on an
24    actuarially equivalent basis from the employee
25    contribution for early retirement under Section 15-136.2,
26    and an annuity from employer contributions of an amount

 

 

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1    equal to that which can be provided on an actuarially
2    equivalent basis from the employee contribution for early
3    retirement under Section 15-136.2.
4    In no event shall a retirement annuity under this Rule 5 be
5lower than the amount obtained by adding (1) the monthly amount
6obtained by dividing the combined employee and employer
7contributions made under Section 15-136.2 by the System's
8annuity factor for the age of the participant at the beginning
9of the annuity payment period and (2) the amount equal to the
10participant's annuity if calculated under Rule 1, reduced under
11Section 15-136(b) as if no contributions had been made under
12Section 15-136.2.
13    With respect to a participant who is qualified for a
14retirement annuity under this Rule 5 whose retirement annuity
15began before the effective date of this amendatory Act of the
1691st General Assembly, and for whom an employee contribution
17was made under Section 15-136.2, the System shall recalculate
18the retirement annuity under this Rule 5 and shall pay any
19additional amounts due in the manner provided in Section
2015-186.1 for benefits mistakenly set too low.
21    The amount of a retirement annuity calculated under this
22Rule 5 shall be computed solely on the basis of those
23contributions specifically set forth in this Rule 5. Except as
24provided in clause (iii) of this Rule 5, neither an employee
25nor employer contribution for early retirement under Section
2615-136.2, nor any other employer contribution, shall be used in

 

 

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1the calculation of the amount of a retirement annuity under
2this Rule 5.
3    The General Assembly has adopted the changes set forth in
4Section 25 of this amendatory Act of the 91st General Assembly
5in recognition that the decision of the Appellate Court for the
6Fourth District in Mattis v. State Universities Retirement
7System et al. might be deemed to give some right to the
8plaintiff in that case. The changes made by Section 25 of this
9amendatory Act of the 91st General Assembly are a legislative
10implementation of the decision of the Appellate Court for the
11Fourth District in Mattis v. State Universities Retirement
12System et al. with respect to that plaintiff.
13    The changes made by Section 25 of this amendatory Act of
14the 91st General Assembly apply without regard to whether the
15person is in service as an employee on or after its effective
16date.
17    (b) The retirement annuity provided under Rules 1 and 3
18above shall be reduced by 1/2 of 1% for each month the
19participant is under age 60 at the time of retirement. However,
20this reduction shall not apply in the following cases:
21        (1) For a disabled participant whose disability
22    benefits have been discontinued because he or she has
23    exhausted eligibility for disability benefits under clause
24    (6) of Section 15-152;
25        (2) For a participant who has at least the number of
26    years of service required to retire at any age under

 

 

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1    subsection (a) of Section 15-135; or
2        (3) For that portion of a retirement annuity which has
3    been provided on account of service of the participant
4    during periods when he or she performed the duties of a
5    police officer or firefighter, if these duties were
6    performed for at least 5 years immediately preceding the
7    date the retirement annuity is to begin.
8    (c) The maximum retirement annuity provided under Rules 1,
92, 4, and 5 shall be the lesser of (1) the annual limit of
10benefits as specified in Section 415 of the Internal Revenue
11Code of 1986, as such Section may be amended from time to time
12and as such benefit limits shall be adjusted by the
13Commissioner of Internal Revenue, and (2) 80% of final rate of
14earnings.
15    (d) An annuitant whose status as an employee terminates
16after August 14, 1969 shall receive automatic increases in his
17or her retirement annuity as follows:
18    Effective January 1 immediately following the date the
19retirement annuity begins, the annuitant shall receive an
20increase in his or her monthly retirement annuity of 0.125% of
21the monthly retirement annuity provided under Rule 1, Rule 2,
22Rule 3, Rule 4, or Rule 5, contained in this Section,
23multiplied by the number of full months which elapsed from the
24date the retirement annuity payments began to January 1, 1972,
25plus 0.1667% of such annuity, multiplied by the number of full
26months which elapsed from January 1, 1972, or the date the

 

 

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1retirement annuity payments began, whichever is later, to
2January 1, 1978, plus 0.25% of such annuity multiplied by the
3number of full months which elapsed from January 1, 1978, or
4the date the retirement annuity payments began, whichever is
5later, to the effective date of the increase.
6    The annuitant shall receive an increase in his or her
7monthly retirement annuity on each January 1 thereafter during
8the annuitant's life of 3% of the monthly annuity provided
9under Rule 1, Rule 2, Rule 3, Rule 4, or Rule 5 contained in
10this Section. The change made under this subsection by P.A.
1181-970 is effective January 1, 1980 and applies to each
12annuitant whose status as an employee terminates before or
13after that date.
14    Beginning January 1, 1990, all automatic annual increases
15payable under this Section shall be calculated as a percentage
16of the total annuity payable at the time of the increase,
17including all increases previously granted under this Article.
18    The change made in this subsection by P.A. 85-1008 is
19effective January 26, 1988, and is applicable without regard to
20whether status as an employee terminated before that date.
21    (e) If, on January 1, 1987, or the date the retirement
22annuity payment period begins, whichever is later, the sum of
23the retirement annuity provided under Rule 1 or Rule 2 of this
24Section and the automatic annual increases provided under the
25preceding subsection or Section 15-136.1, amounts to less than
26the retirement annuity which would be provided by Rule 3, the

 

 

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1retirement annuity shall be increased as of January 1, 1987, or
2the date the retirement annuity payment period begins,
3whichever is later, to the amount which would be provided by
4Rule 3 of this Section. Such increased amount shall be
5considered as the retirement annuity in determining benefits
6provided under other Sections of this Article. This paragraph
7applies without regard to whether status as an employee
8terminated before the effective date of this amendatory Act of
91987, provided that the annuitant was employed at least
10one-half time during the period on which the final rate of
11earnings was based.
12    (f) A participant is entitled to such additional annuity as
13may be provided on an actuarially equivalent basis, by any
14accumulated additional contributions to his or her credit.
15However, the additional contributions made by the participant
16toward the automatic increases in annuity provided under this
17Section shall not be taken into account in determining the
18amount of such additional annuity.
19    (g) If, (1) by law, a function of a governmental unit, as
20defined by Section 20-107 of this Code, is transferred in whole
21or in part to an employer, and (2) a participant transfers
22employment from such governmental unit to such employer within
236 months after the transfer of the function, and (3) the sum of
24(A) the annuity payable to the participant under Rule 1, 2, or
253 of this Section (B) all proportional annuities payable to the
26participant by all other retirement systems covered by Article

 

 

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120, and (C) the initial primary insurance amount to which the
2participant is entitled under the Social Security Act, is less
3than the retirement annuity which would have been payable if
4all of the participant's pension credits validated under
5Section 20-109 had been validated under this system, a
6supplemental annuity equal to the difference in such amounts
7shall be payable to the participant.
8    (h) On January 1, 1981, an annuitant who was receiving a
9retirement annuity on or before January 1, 1971 shall have his
10or her retirement annuity then being paid increased $1 per
11month for each year of creditable service. On January 1, 1982,
12an annuitant whose retirement annuity began on or before
13January 1, 1977, shall have his or her retirement annuity then
14being paid increased $1 per month for each year of creditable
15service.
16    (i) On January 1, 1987, any annuitant whose retirement
17annuity began on or before January 1, 1977, shall have the
18monthly retirement annuity increased by an amount equal to 8
19per year of creditable service times the number of years that
20have elapsed since the annuity began.
21(Source: P.A. 93-347, eff. 7-24-03; 94-4, eff. 6-1-05.)
 
22    (40 ILCS 5/15-136.4)
23    Sec. 15-136.4. Retirement and Survivor Benefits Under
24Portable Benefit Package.
25    (a) This Section 15-136.4 describes the form of annuity and

 

 

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1survivor benefits available to a participant who has elected
2the portable benefit package and has completed the one-year
3waiting period required under subsection (e) of Section
415-134.5. For purposes of this Section, the term "eligible
5spouse" means the husband or wife of a participant to whom the
6participant is married on the date the participant's annuity
7payment period begins, provided however, that if the
8participant should die prior to the commencement of retirement
9annuity benefits, then "eligible spouse" means the husband or
10wife, if any, to whom the participant was married throughout
11the one-year period preceding the date of his or her death.
12    (b) This subsection (b) describes the normal form of
13annuity payable to a participant subject to this Section
1415-136.4. If the participant is unmarried on the date his or
15her annuity payment period begins, then the annuity payments
16shall be made in the form of a single-life annuity as described
17in Section 15-118. If the participant is married on the date
18his or her annuity payments commence, then the annuity payments
19shall be paid in the form of a qualified joint and survivor
20annuity that is the actuarial equivalent of the single-life
21annuity. Under the "qualified joint and survivor annuity", a
22reduced amount shall be paid to the participant for his or her
23lifetime and his or her eligible spouse, if surviving at the
24participant's death, shall be entitled to receive thereafter a
25lifetime survivorship annuity in a monthly amount equal to 50%
26of the reduced monthly amount that was payable to the

 

 

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1participant. The last payment of a qualified joint and survivor
2annuity shall be made as of the first day of the month in which
3the death of the survivor occurs.
4    (c) Instead of the normal form of annuity that would be
5paid under subsection (b), a participant may elect in writing
6within the 180-day 90-day period prior to the date his or her
7annuity payments commence to waive the normal form of annuity
8payment and receive an optional form of payment as described in
9subsection (h). If the participant is married and elects an
10optional form of payment under subsection (h) other than a
11joint and survivor annuity with the eligible spouse designated
12as the contingent annuitant, then such election shall require
13the consent of his or her eligible spouse in the manner
14described in subsection (d). At any time during the 180-day
1590-day period preceding the date the participant's payment
16period begins, the participant may revoke the optional form of
17payment elected under this subsection (c) and reinstate
18coverage under the qualified joint and survivor annuity without
19the spouse's consent, but an election to revoke the optional
20form elected and elect a new optional form of payment or
21designate a different contingent annuitant shall not be
22effective without the eligible spouse's consent.
23    (d) The eligible spouse's consent to any election made
24pursuant to this Section that requires the eligible spouse's
25consent shall be in writing and shall acknowledge the effect of
26the consent. In addition, the eligible spouse's signature on

 

 

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1the written consent must be witnessed by a notary public. The
2eligible spouse's consent need not be obtained if the system is
3satisfied that there is no eligible spouse, that the eligible
4spouse cannot be located, or because of any other relevant
5circumstances. An eligible spouse's consent under this Section
6is valid only with respect to the specified optional form of
7payment and, if applicable, contingent annuitant designated by
8the participant. If the optional form of payment or the
9contingent annuitant is subsequently changed (other than by a
10revocation of the optional form of payment and reinstatement of
11the qualified joint and survivor annuity), a new consent by the
12eligible spouse is required. The eligible spouse's consent to
13an election made by a participant pursuant to this Section,
14once made, may not be revoked by the eligible spouse.
15    (e) Within a reasonable period of time preceding the date a
16participant's annuity commences, a participant shall be
17supplied with a written explanation of (1) the terms and
18conditions of the normal form single-life annuity and qualified
19joint and survivor annuity, (2) the participant's right to
20elect a single-life annuity or an optional form of payment
21under subsection (h) subject to his or her eligible spouse's
22consent, if applicable, and (3) the participant's right to
23reinstate coverage under the qualified joint and survivor
24annuity prior to his or her annuity commencement date by
25revoking an election of an optional form of payment under
26subsection (h).

 

 

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1    (f) If a married participant with at least 1.5 years of
2service dies prior to commencing retirement annuity payments
3and prior to taking a refund under Section 15-154, his or her
4eligible spouse is entitled to receive a pre-retirement
5survivor annuity, if there is not then in effect a waiver of
6the pre-retirement survivor annuity. The pre-retirement
7survivor annuity payable under this subsection shall be a
8monthly annuity payable for the eligible spouse's life,
9commencing as of the beginning of the month next following the
10later of the date of the participant's death or the date the
11participant would have first met the eligibility requirements
12for retirement, and continuing through the beginning of the
13month in which the death of the eligible spouse occurs. The
14monthly amount payable to the spouse under the pre-retirement
15survivor annuity shall be equal to the monthly amount that
16would be payable as a survivor annuity under the qualified
17joint and survivor annuity described in subsection (b) if: (1)
18in the case of a participant who dies on or after the date on
19which the participant has met the eligibility requirements for
20retirement, the participant had retired with an immediate
21qualified joint and survivor annuity on the day before the
22participant's date of death; or (2) in the case of a
23participant who dies before the earliest date on which the
24participant would have met the eligibility requirements for
25retirement age, the participant had separated from service on
26the date of death, survived to the earliest retirement age

 

 

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1based on service prior to his or her death, retired with an
2immediate qualified joint and survivor annuity at the earliest
3retirement age, and died on the day after the day on which the
4participant would have attained the earliest retirement age.
5    (g) A married participant who has not retired may elect at
6any time to waive the pre-retirement survivor annuity described
7in subsection (f). Any such election shall require the consent
8of the participant's eligible spouse in the manner described in
9subsection (d). A waiver of the pre-retirement survivor annuity
10shall increase the lump sum death benefit payable under
11subsection (b) of Section 15-141. Prior to electing any waiver
12of the pre-retirement survivor annuity, the participant shall
13be provided with a written explanation of (1) the terms and
14conditions of the pre-retirement survivor annuity and the death
15benefits payable from the system both with and without the
16pre-retirement survivor annuity, (2) the participant's right
17to elect a waiver of the pre-retirement survivor annuity
18coverage subject to his or her spouse's consent, and (3) the
19participant's right to reinstate pre-retirement survivor
20annuity coverage at any time by revoking a prior waiver of such
21coverage.
22    (h) By filing a timely election with the system, a
23participant who will be eligible to receive a retirement
24annuity under this Section may waive the normal form of annuity
25payment described in subsection (b), subject to obtaining the
26consent of his or her eligible spouse, if applicable, and elect

 

 

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1to receive any one of the following optional forms of payment:
2        (1) Joint and Survivor Annuity Options: The
3    participant may elect to receive a reduced annuity payable
4    for his or her life and to have a lifetime survivorship
5    annuity in a monthly amount equal to 50%, 75%, or 100% (as
6    elected by the participant) of that reduced monthly amount,
7    to be paid after the participant's death to his or her
8    contingent annuitant, if the contingent annuitant is alive
9    at the time of the participant's death.
10        (2) Single-Life Annuity Option (optional for married
11    participants). The participant may elect to receive a
12    single-life annuity payable for his or her life only.
13        (3) Lump sum retirement benefit. The participant may
14    elect to receive a lump sum retirement benefit that is
15    equal to the amount of a refund payable under Section
16    15-154(a-2).
17All joint and survivor annuity forms shall be in an amount that
18is the actuarial equivalent of the single-life annuity.
19    For the purposes of this Section, the term "contingent
20annuitant" means the beneficiary who is designated by a
21participant at the time the participant elects a joint and
22survivor annuity to receive the lifetime survivorship annuity
23in the event the beneficiary survives the participant at the
24participant's death.
25    (i) Under no circumstances may an option be elected,
26changed, or revoked after the date the participant's retirement

 

 

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1annuity commences.
2    (j) An election made pursuant to subsection (h) shall
3become inoperative if the participant or the contingent
4annuitant dies before the date the participant's annuity
5payments commence, or if the eligible spouse's consent is
6required and not given.
7    (k) (Blank).
8    (l) The automatic annual increases described in subsection
9(d) of Section 15-136 shall apply to retirement benefits under
10the portable benefit package and the automatic annual increases
11described in subsection (j) of Section 15-145 shall apply to
12survivor benefits under the portable benefit package.
13(Source: P.A. 96-586, eff. 8-18-09.)
 
14    (40 ILCS 5/15-139)  (from Ch. 108 1/2, par. 15-139)
15    Sec. 15-139. Retirement annuities; cancellation; suspended
16during employment.
17    (a) If an annuitant returns to employment for an employer
18within 60 days after the beginning of the retirement annuity
19payment period, the retirement annuity shall be cancelled, and
20the annuitant shall refund to the System the total amount of
21the retirement annuity payments which he or she received. If
22the retirement annuity is cancelled, the participant shall
23continue to participate in the System.
24    (b) If an annuitant retires prior to age 60 and receives or
25becomes entitled to receive during any month compensation in

 

 

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1excess of the monthly retirement annuity (including any
2automatic annual increases) for services performed after the
3date of retirement for any employer under this System, that
4portion of the monthly retirement annuity provided by employer
5contributions shall not be payable.
6    If an annuitant retires at age 60 or over and receives or
7becomes entitled to receive during any academic year
8compensation in excess of the difference between his or her
9highest annual earnings prior to retirement and his or her
10annual retirement annuity computed under Rule 1, Rule 2, Rule
113, Rule 4, or Rule 5 of Section 15-136, or under Section
1215-136.4, for services performed after the date of retirement
13for any employer under this System, that portion of the monthly
14retirement annuity provided by employer contributions shall be
15reduced by an amount equal to the compensation that exceeds
16such difference.
17    However, any remuneration received for serving as a member
18of the Illinois Educational Labor Relations Board shall be
19excluded from "compensation" for the purposes of this
20subsection (b), and serving as a member of the Illinois
21Educational Labor Relations Board shall not be deemed to be a
22return to employment for the purposes of this Section. This
23provision applies without regard to whether service was
24terminated prior to the effective date of this amendatory Act
25of 1991.
26    (c) If an employer certifies that an annuitant has been

 

 

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1reemployed on a permanent and continuous basis or in a position
2in which the annuitant is expected to serve for at least 9
3months, the annuitant shall resume his or her status as a
4participating employee and shall be entitled to all rights
5applicable to participating employees upon filing with the
6board an election to forgo forego all annuity payments during
7the period of reemployment. Upon subsequent retirement, the
8retirement annuity shall consist of the annuity which was
9terminated by the reemployment, plus the additional retirement
10annuity based upon service granted during the period of
11reemployment, but the combined retirement annuity shall not
12exceed the maximum annuity applicable on the date of the last
13retirement.
14    The total service and earnings credited before and after
15the initial date of retirement shall be considered in
16determining eligibility of the employee or the employee's
17beneficiary to benefits under this Article, and in calculating
18final rate of earnings.
19    In determining the death benefit payable to a beneficiary
20of an annuitant who again becomes a participating employee
21under this Section, accumulated normal and additional
22contributions shall be considered as the sum of the accumulated
23normal and additional contributions at the date of initial
24retirement and the accumulated normal and additional
25contributions credited after that date, less the sum of the
26annuity payments received by the annuitant.

 

 

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1    The survivors insurance benefits provided under Section
215-145 shall not be applicable to an annuitant who resumes his
3or her status as a participating employee, unless the
4annuitant, at the time of initial retirement, has a survivors
5insurance beneficiary who could qualify for such benefits.
6    If the participant's annuitant's employment is terminated
7because of circumstances other than death before 9 months from
8the date of reemployment, the provisions of this Section
9regarding resumption of status as a participating employee
10shall not apply. The normal and survivors insurance
11contributions which are deducted during this period shall be
12refunded to the annuitant without interest, and subsequent
13benefits under this Article shall be the same as those which
14were applicable prior to the date the annuitant resumed
15employment.
16    The amendments made to this Section by this amendatory Act
17of the 91st General Assembly apply without regard to whether
18the annuitant was in service on or after the effective date of
19this amendatory Act.
20(Source: P.A. 91-887 (Sections 10 and 25), eff. 7-6-00; 92-16,
21eff. 6-28-01.)
 
22    (40 ILCS 5/15-139.5 new)
23    Sec. 15-139.5. Return to work by affected annuitant; notice
24and contribution by employer.
25    (a) An employer who employs or re-employs a person

 

 

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1receiving a retirement annuity from the System in an academic
2year beginning on or after August 1, 2013 must notify the
3System of that employment within 60 days after employing the
4annuitant. The notice must include a copy of the contract of
5employment; if no written contract of employment exists, then
6the notice must specify the rate of compensation and the
7anticipated length of employment of that annuitant. The notice
8must specify whether the annuitant will be compensated from
9federal, corporate, foundation, or trust funds or grants of
10State funds that identify the principal investigator by name.
11The notice must include the employer's determination of whether
12or not the annuitant is an "affected annuitant" as defined in
13subsection (b).
14    The employer must also record, document, and certify to the
15System (i) the number of paid days and paid weeks worked by the
16annuitant in the academic year, (ii) the amount of compensation
17paid to the annuitant for employment during the academic year,
18and (iii) the amount of that compensation, if any, that comes
19from either federal, corporate, foundation, or trust funds or
20grants of State funds that identify the principal investigator
21by name.
22    As used in this Section, "academic year" has the meaning
23ascribed to that term in Section 15-126.1; "paid day" means a
24day on which a person performs personal services for an
25employer and for which the person is compensated by the
26employer; and "paid week" means a calendar week in which a

 

 

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1person has at least one paid day.
2    For the purposes of this Section, an annuitant whose
3employment by an employer extends over more than one academic
4year shall be deemed to be re-employed by that employer in each
5of those academic years.
6    The System may specify the time, form, and manner of
7providing the determinations, notifications, certifications,
8and documentation required under this Section.
9    (b) A person receiving a retirement annuity from the System
10becomes an "affected annuitant" on the first day of the
11academic year following the academic year in which the
12annuitant first meets both of the following conditions:
13        (1) While receiving a retirement annuity under this
14    Article, the annuitant has been employed on or after August
15    1, 2013 by one or more employers under this Article for a
16    total of more than 18 paid weeks (which need not have been
17    with the same employer or in the same academic year);
18    except that any periods of employment for which the
19    annuitant was compensated solely from federal, corporate,
20    foundation, or trust funds or grants of State funds that
21    identify the principal investigator by name are excluded.
22        (2) While receiving a retirement annuity under this
23    Article, the annuitant was employed on or after August 1,
24    2013 by one or more employers under this Article and
25    received or became entitled to receive during an academic
26    year compensation for that employment in excess of 40% of

 

 

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1    his or her highest annual earnings prior to retirement;
2    except that compensation paid from federal, corporate,
3    foundation, or trust funds or grants of State funds that
4    identify the principal investigator by name is excluded.
5    A person who becomes an affected annuitant remains an
6affected annuitant, except for any period during which the
7person returns to active service and does not receive a
8retirement annuity from the System.
9    (c) It is the obligation of the employer to determine
10whether an annuitant is an affected annuitant before employing
11the annuitant. For that purpose the employer may require the
12annuitant to disclose and document his or her relevant prior
13employment and earnings history. Failure of the employer to
14make this determination correctly and in a timely manner or to
15include this determination with the notification required
16under subsection (a) does not excuse the employer from making
17the contribution required under subsection (e).
18    The System may assist the employer in determining whether a
19person is an affected annuitant. The System shall inform the
20employer if it discovers that the employer's determination is
21inconsistent with the employment and earnings information in
22the System's records.
23    (d) Upon the request of an annuitant, the System shall
24certify to the annuitant the following information as reported
25by the employers, as that information is indicated in the
26records of the System: (i) the annuitant's highest annual

 

 

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1earnings prior to retirement, (ii) the number of paid weeks
2worked by the annuitant for an employer on or after August 1,
32013, (iii) the compensation paid for that employment in each
4academic year, and (iv) whether any of that employment or
5compensation has been certified to the System as being paid
6from federal, corporate, foundation, or trust funds or grants
7of State funds that identify the principal investigator by
8name. The System shall only be required to certify information
9that is received from the employers.
10    (e) In addition to the requirements of subsection (a), an
11employer who employs an affected annuitant must pay to the
12System an employer contribution in the amount and manner
13provided in this Section, unless the annuitant is compensated
14by that employer solely from federal, corporate, foundation, or
15trust funds or grants of State funds that identify the
16principal investigator by name.
17    The employer contribution required under this Section for
18employment of an affected annuitant in an academic year shall
19be equal to 12 times the amount of the gross monthly retirement
20annuity payable to the annuitant for the month in which the
21first paid day of that employment in that academic year occurs,
22after any reduction in that annuity that may be imposed under
23subsection (b) of Section 15-139.
24    If an affected annuitant is employed by more than one
25employer in an academic year, the employer contribution
26required under this Section shall be divided among those

 

 

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1employers in proportion to their respective portions of the
2total compensation paid to the affected annuitant for that
3employment during that academic year.
4    If the System determines that an employer, without
5reasonable justification, has failed to make the determination
6of affected annuitant status correctly and in a timely manner,
7or has failed to notify the system or to correctly document or
8certify to the System any of the information required by this
9Section, and that failure results in a delayed determination by
10the System that a contribution is payable under this Section,
11then the amount of that employer's contribution otherwise
12determined under this Section shall be doubled.
13    The System shall deem a failure to correctly determine the
14annuitant's status to be justified if the employer establishes
15to the System's satisfaction that the employer, after due
16diligence, made an erroneous determination that the annuitant
17was not an affected annuitant due to reasonable reliance on
18false or misleading information provided by the annuitant or
19another employer, or an error in the annuitant's official
20employment or earnings records.
21    (f) Whenever the System determines that an employer is
22liable for a contribution under this Section, it shall so
23notify the employer and certify the amount of the contribution.
24The employer may pay the required contribution without interest
25at any time within one year after receipt of the certification.
26If the employer fails to pay within that year, then interest

 

 

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1shall be charged at a rate equal to the System's prescribed
2rate of interest, compounded annually from the 366th day after
3receipt of the certification from the System. Payment must be
4concluded within 2 years after receipt of the certification by
5the employer. If the employer fails to make complete payment,
6including applicable interest, within 2 years, then the System
7may, after giving notice to the employer, certify the
8delinquent amount to the State Comptroller, and the Comptroller
9shall thereupon deduct the certified delinquent amount from
10State funds payable to the employer and pay them instead to the
11System.
12    (g) If an employer is required to make a contribution to
13the System as a result of employing an affected annuitant and
14the annuitant later elects to forgo his or her annuity in that
15same academic year pursuant to subsection (c) of Section
1615-139, then the required contribution by the employer shall be
17waived, and if the contribution has already been paid, it shall
18be refunded to the employer without interest.
19    (h) Notwithstanding any other provision of this Article,
20the employer contribution required under this Section shall not
21be included in the determination of any benefit under this
22Article or any other Article of this Code, regardless of
23whether the annuitant returns to active service, and is in
24addition to any other State or employer contribution required
25under this Article.
26    (i) Notwithstanding any other provision of this Section to

 

 

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1the contrary, if an employer employs an affected annuitant in
2order to continue critical operations in the event of either an
3employee's unforeseen illness, accident, or death or a
4catastrophic incident or disaster, then, for one and only one
5academic year, the employer is not required to pay the
6contribution set forth in this Section for that annuitant. The
7employer shall, however, immediately notify the System upon
8employing a person subject to this subsection (i). For the
9purposes of this subsection (i), "critical operations" means
10teaching services, medical services, student welfare services,
11and any other services that are critical to the mission of the
12employer.
 
13    (40 ILCS 5/15-153.2)  (from Ch. 108 1/2, par. 15-153.2)
14    Sec. 15-153.2. Disability retirement annuity. A
15participant whose disability benefits are discontinued under
16the provisions of clause (6) of Section 15-152 and who is not a
17participant in the optional retirement plan established under
18Section 15-158.2 is entitled to a disability retirement annuity
19of 35% of the basic compensation which was payable to the
20participant at the time that disability began, provided that
21the board determines that the participant has a medically
22determinable physical or mental impairment that prevents him or
23her from engaging in any substantial gainful activity, and
24which can be expected to result in death or which has lasted or
25can be expected to last for a continuous period of not less

 

 

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1than 12 months.
2    The board's determination of whether a participant is
3disabled shall be based upon:
4        (i) a written certificate from one or more licensed and
5    practicing physicians appointed by or acceptable to the
6    board, stating that the participant is unable to engage in
7    any substantial gainful activity; and
8        (ii) any other medical examinations, hospital records,
9    laboratory results, or other information necessary for
10    determining the employment capacity and condition of the
11    participant.
12    The terms "medically determinable physical or mental
13impairment" and "substantial gainful activity" shall have the
14meanings ascribed to them in the federal Social Security Act,
15as now or hereafter amended, and the regulations issued
16thereunder.
17    The disability retirement annuity payment period shall
18begin immediately following the expiration of the disability
19benefit payments under clause (6) of Section 15-152 and shall
20be discontinued for a recipient of a disability retirement
21annuity when (1) the physical or mental impairment no longer
22prevents the participant from engaging in any substantial
23gainful activity, (2) the participant dies or (3) the
24participant elects to receive a retirement annuity under
25Sections 15-135 and 15-136. If a person's disability retirement
26annuity is discontinued under clause (1), all rights and

 

 

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1credits accrued in the system on the date that the disability
2retirement annuity began shall be restored, and the disability
3retirement annuity paid shall be considered as disability
4payments under clause (6) of Section 15-152.
5(Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-511,
6eff. 8-22-97; 90-766, eff. 8-14-98.)
 
7    (40 ILCS 5/15-168.2 new)
8    Sec. 15-168.2. Audit of employers. Beginning August 1,
92013, the System may audit the employment records and payroll
10records of all employers. When the System audits an employer,
11it shall specify the exact information it requires, which may
12include but need not be limited to the names, titles, and
13earnings history of every individual receiving compensation
14from the employer. If an employer is audited by the System,
15then the employer must provide to the System all necessary
16documents and records within 60 calendar days after receiving
17notification from the System. When the System audits an
18employer, it shall send related correspondence by certified
19mail.
 
20    (40 ILCS 5/15-186)  (from Ch. 108 1/2, par. 15-186)
21    Sec. 15-186. Fraud.
22    Any person who knowingly makes any false statement, or
23falsifies or permits to be falsified any record or records of
24this system, in any attempt to defraud the system or to mislead

 

 

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1or defraud an employer with respect to employment of an
2annuitant under Section 15-139.5, is guilty of a Class A
3misdemeanor.
4(Source: P.A. 77-2830.)
 
5    Section 99. Effective date. This Act takes effect July 1,
62012.".