Illinois General Assembly - Full Text of HB3813
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Full Text of HB3813  97th General Assembly

HB3813enr 97TH GENERAL ASSEMBLY

  
  
  

 


 
HB3813 EnrolledLRB097 13613 AMC 58149 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 1-114, 1-135, 3-110, 4-108, 5-214, 6-209, 8-138,
68-226, 8-233, 9-219, 11-134, 11-215, 11-217, 15-107, 16-106,
7and 17-134 as follows:
 
8    (40 ILCS 5/1-114)  (from Ch. 108 1/2, par. 1-114)
9    Sec. 1-114. Liability for Breach of Fiduciary Duty. (a) Any
10person who is a fiduciary with respect to a retirement system
11or pension fund established under this Code who breaches any
12duty imposed upon fiduciaries by this Code, including, but not
13limited to, a failure to report a reasonable suspicion of a
14false statement specified in Section 1-135 of this Code, shall
15be personally liable to make good to such retirement system or
16pension fund any losses to it resulting from each such breach,
17and to restore to such retirement system or pension fund any
18profits of such fiduciary which have been made through use of
19assets of the retirement system or pension fund by the
20fiduciary, and shall be subject to such equitable or remedial
21relief as the court may deem appropriate, including the removal
22of such fiduciary.
23    (b) No person shall be liable with respect to a breach of

 

 

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1fiduciary duty under this Code if such breach occurred before
2such person became a fiduciary or after such person ceased to
3be a fiduciary.
4(Source: P.A. 82-960.)
 
5    (40 ILCS 5/1-135)
6    Sec. 1-135. Fraud. Any person who knowingly makes any false
7statement or falsifies or permits to be falsified any record of
8a retirement system or pension fund created under this Code or
9the Illinois State Board of Investment in an attempt to defraud
10the retirement system or pension fund created under this Code
11or the Illinois State Board of Investment is guilty of a Class
123 felony. Any reasonable suspicion by any appointed or elected
13commissioner, trustee, director, or board member of a
14retirement system or pension fund created under this Code or
15the State Board of Investment of a false statement or falsified
16record being submitted or permitted by a person under this Code
17shall be immediately referred to the board of trustees of the
18applicable retirement system or pension fund created under this
19Code, the State Board of Investment, or the State's Attorney of
20the jurisdiction where the alleged fraudulent activity
21occurred. The board of trustees of a retirement system or
22pension fund created under this Code or the State Board of
23Investment shall immediately notify the State's Attorney of the
24jurisdiction where any alleged fraudulent activity occurred
25for investigation. For the purposes of this Section,

 

 

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1"reasonable suspicion" means a belief, based upon specific and
2articulable facts, taken together with rational inferences
3from those facts, that would lead a reasonable person to
4believe that fraud has been, or will be, committed. A
5reasonable suspicion is more than a non-particularized
6suspicion. A mere inconsistency, standing alone, does not give
7rise to a reasonable suspicion.
8(Source: P.A. 96-6, eff. 4-3-09.)
 
9    (40 ILCS 5/3-110)  (from Ch. 108 1/2, par. 3-110)
10    Sec. 3-110. Creditable service.
11    (a) "Creditable service" is the time served by a police
12officer as a member of a regularly constituted police force of
13a municipality. In computing creditable service furloughs
14without pay exceeding 30 days shall not be counted, but all
15leaves of absence for illness or accident, regardless of
16length, and all periods of disability retirement for which a
17police officer has received no disability pension payments
18under this Article shall be counted.
19    (a-5) Up to 3 years of time during which the police officer
20receives a disability pension under Section 3-114.1, 3-114.2,
213-114.3, or 3-114.6 shall be counted as creditable service,
22provided that (i) the police officer returns to active service
23after the disability for a period at least equal to the period
24for which credit is to be established and (ii) the police
25officer makes contributions to the fund based on the rates

 

 

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1specified in Section 3-125.1 and the salary upon which the
2disability pension is based. These contributions may be paid at
3any time prior to the commencement of a retirement pension. The
4police officer may, but need not, elect to have the
5contributions deducted from the disability pension or to pay
6them in installments on a schedule approved by the board. If
7not deducted from the disability pension, the contributions
8shall include interest at the rate of 6% per year, compounded
9annually, from the date for which service credit is being
10established to the date of payment. If contributions are paid
11under this subsection (a-5) in excess of those needed to
12establish the credit, the excess shall be refunded. This
13subsection (a-5) applies to persons receiving a disability
14pension under Section 3-114.1, 3-114.2, 3-114.3, or 3-114.6 on
15the effective date of this amendatory Act of the 91st General
16Assembly, as well as persons who begin to receive such a
17disability pension after that date.
18    (b) Creditable service includes all periods of service in
19the military, naval or air forces of the United States entered
20upon while an active police officer of a municipality, provided
21that upon applying for a permanent pension, and in accordance
22with the rules of the board, the police officer pays into the
23fund the amount the officer would have contributed if he or she
24had been a regular contributor during such period, to the
25extent that the municipality which the police officer served
26has not made such contributions in the officer's behalf. The

 

 

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1total amount of such creditable service shall not exceed 5
2years, except that any police officer who on July 1, 1973 had
3more than 5 years of such creditable service shall receive the
4total amount thereof.
5    (b-5) Creditable service includes all periods of service in
6the military, naval, or air forces of the United States entered
7upon before beginning service as an active police officer of a
8municipality, provided that, in accordance with the rules of
9the board, the police officer pays into the fund the amount the
10police officer would have contributed if he or she had been a
11regular contributor during such period, plus an amount
12determined by the Board to be equal to the municipality's
13normal cost of the benefit, plus interest at the actuarially
14assumed rate calculated from the date the employee last became
15a police officer under this Article. The total amount of such
16creditable service shall not exceed 2 years.
17    (c) Creditable service also includes service rendered by a
18police officer while on leave of absence from a police
19department to serve as an executive of an organization whose
20membership consists of members of a police department, subject
21to the following conditions: (i) the police officer is a
22participant of a fund established under this Article with at
23least 10 years of service as a police officer; (ii) the police
24officer received no credit for such service under any other
25retirement system, pension fund, or annuity and benefit fund
26included in this Code; (iii) pursuant to the rules of the board

 

 

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1the police officer pays to the fund the amount he or she would
2have contributed had the officer been an active member of the
3police department; and (iv) the organization pays a
4contribution equal to the municipality's normal cost for that
5period of service; and (v) for all leaves of absence under this
6subsection (c), including those beginning before the effective
7date of this amendatory Act of the 97th General Assembly, the
8police officer continues to remain in sworn status, subject to
9the professional standards of the public employer or those
10terms established in statute.
11        (d)(1) Creditable service also includes periods of
12    service originally established in another police pension
13    fund under this Article or in the Fund established under
14    Article 7 of this Code for which (i) the contributions have
15    been transferred under Section 3-110.7 or Section 7-139.9
16    and (ii) any additional contribution required under
17    paragraph (2) of this subsection has been paid in full in
18    accordance with the requirements of this subsection (d).
19        (2) If the board of the pension fund to which
20    creditable service and related contributions are
21    transferred under Section 7-139.9 determines that the
22    amount transferred is less than the true cost to the
23    pension fund of allowing that creditable service to be
24    established, then in order to establish that creditable
25    service the police officer must pay to the pension fund,
26    within the payment period specified in paragraph (3) of

 

 

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1    this subsection, an additional contribution equal to the
2    difference, as determined by the board in accordance with
3    the rules and procedures adopted under paragraph (6) of
4    this subsection. If the board of the pension fund to which
5    creditable service and related contributions are
6    transferred under Section 3-110.7 determines that the
7    amount transferred is less than the true cost to the
8    pension fund of allowing that creditable service to be
9    established, then the police officer may elect (A) to
10    establish that creditable service by paying to the pension
11    fund, within the payment period specified in paragraph (3)
12    of this subsection (d), an additional contribution equal to
13    the difference, as determined by the board in accordance
14    with the rules and procedures adopted under paragraph (6)
15    of this subsection (d) or (B) to have his or her creditable
16    service reduced by an amount equal to the difference
17    between the amount transferred under Section 3-110.7 and
18    the true cost to the pension fund of allowing that
19    creditable service to be established, as determined by the
20    board in accordance with the rules and procedures adopted
21    under paragraph (6) of this subsection (d).
22        (3) Except as provided in paragraph (4), the additional
23    contribution that is required or elected under paragraph
24    (2) of this subsection (d) must be paid to the board (i)
25    within 5 years from the date of the transfer of
26    contributions under Section 3-110.7 or 7-139.9 and (ii)

 

 

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1    before the police officer terminates service with the fund.
2    The additional contribution may be paid in a lump sum or in
3    accordance with a schedule of installment payments
4    authorized by the board.
5        (4) If the police officer dies in service before
6    payment in full has been made and before the expiration of
7    the 5-year payment period, the surviving spouse of the
8    officer may elect to pay the unpaid amount on the officer's
9    behalf within 6 months after the date of death, in which
10    case the creditable service shall be granted as though the
11    deceased police officer had paid the remaining balance on
12    the day before the date of death.
13        (5) If the additional contribution that is required or
14    elected under paragraph (2) of this subsection (d) is not
15    paid in full within the required time, the creditable
16    service shall not be granted and the police officer (or the
17    officer's surviving spouse or estate) shall be entitled to
18    receive a refund of (i) any partial payment of the
19    additional contribution that has been made by the police
20    officer and (ii) those portions of the amounts transferred
21    under subdivision (a)(1) of Section 3-110.7 or
22    subdivisions (a)(1) and (a)(3) of Section 7-139.9 that
23    represent employee contributions paid by the police
24    officer (but not the accumulated interest on those
25    contributions) and interest paid by the police officer to
26    the prior pension fund in order to reinstate service

 

 

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1    terminated by acceptance of a refund.
2        At the time of paying a refund under this item (5), the
3    pension fund shall also repay to the pension fund from
4    which the contributions were transferred under Section
5    3-110.7 or 7-139.9 the amount originally transferred under
6    subdivision (a)(2) of that Section, plus interest at the
7    rate of 6% per year, compounded annually, from the date of
8    the original transfer to the date of repayment. Amounts
9    repaid to the Article 7 fund under this provision shall be
10    credited to the appropriate municipality.
11        Transferred credit that is not granted due to failure
12    to pay the additional contribution within the required time
13    is lost; it may not be transferred to another pension fund
14    and may not be reinstated in the pension fund from which it
15    was transferred.
16        (6) The Public Employee Pension Fund Division of the
17    Department of Insurance shall establish by rule the manner
18    of making the calculation required under paragraph (2) of
19    this subsection, taking into account the appropriate
20    actuarial assumptions; the police officer's service, age,
21    and salary history; the level of funding of the pension
22    fund to which the credits are being transferred; and any
23    other factors that the Division determines to be relevant.
24    The rules may require that all calculations made under
25    paragraph (2) be reported to the Division by the board
26    performing the calculation, together with documentation of

 

 

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1    the creditable service to be transferred, the amounts of
2    contributions and interest to be transferred, the manner in
3    which the calculation was performed, the numbers relied
4    upon in making the calculation, the results of the
5    calculation, and any other information the Division may
6    deem useful.
7        (e)(1) Creditable service also includes periods of
8    service originally established in the Fund established
9    under Article 7 of this Code for which the contributions
10    have been transferred under Section 7-139.11.
11        (2) If the board of the pension fund to which
12    creditable service and related contributions are
13    transferred under Section 7-139.11 determines that the
14    amount transferred is less than the true cost to the
15    pension fund of allowing that creditable service to be
16    established, then the amount of creditable service the
17    police officer may establish under this subsection (e)
18    shall be reduced by an amount equal to the difference, as
19    determined by the board in accordance with the rules and
20    procedures adopted under paragraph (3) of this subsection.
21        (3) The Public Pension Division of the Department of
22    Financial and Professional Regulation shall establish by
23    rule the manner of making the calculation required under
24    paragraph (2) of this subsection, taking into account the
25    appropriate actuarial assumptions; the police officer's
26    service, age, and salary history; the level of funding of

 

 

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1    the pension fund to which the credits are being
2    transferred; and any other factors that the Division
3    determines to be relevant. The rules may require that all
4    calculations made under paragraph (2) be reported to the
5    Division by the board performing the calculation, together
6    with documentation of the creditable service to be
7    transferred, the amounts of contributions and interest to
8    be transferred, the manner in which the calculation was
9    performed, the numbers relied upon in making the
10    calculation, the results of the calculation, and any other
11    information the Division may deem useful.
12        (4) Until January 1, 2010, a police officer who
13    transferred service from the Fund established under
14    Article 7 of this Code under the provisions of Public Act
15    94-356 may establish additional credit, but only for the
16    amount of the service credit reduction in that transfer, as
17    calculated under paragraph (3) of this subsection (e). This
18    credit may be established upon payment by the police
19    officer of an amount to be determined by the board, equal
20    to (1) the amount that would have been contributed as
21    employee and employer contributions had all of the service
22    been as an employee under this Article, plus interest
23    thereon at the rate of 6% per year, compounded annually
24    from the date of service to the date of transfer, less (2)
25    the total amount transferred from the Article 7 Fund, plus
26    (3) interest on the difference at the rate of 6% per year,

 

 

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1    compounded annually, from the date of the transfer to the
2    date of payment. The additional service credit is allowed
3    under this amendatory Act of the 95th General Assembly
4    notwithstanding the provisions of Article 7 terminating
5    all transferred credits on the date of transfer.
6(Source: P.A. 95-812, eff. 8-13-08; 96-297, eff. 8-11-09;
796-1260, eff. 7-23-10.)
 
8    (40 ILCS 5/4-108)  (from Ch. 108 1/2, par. 4-108)
9    Sec. 4-108. Creditable service.
10    (a) Creditable service is the time served as a firefighter
11of a municipality. In computing creditable service, furloughs
12and leaves of absence without pay exceeding 30 days in any one
13year shall not be counted, but leaves of absence for illness or
14accident regardless of length, and periods of disability for
15which a firefighter received no disability pension payments
16under this Article, shall be counted.
17    (b) Furloughs and leaves of absence of 30 days or less in
18any one year may be counted as creditable service, if the
19firefighter makes the contribution to the fund that would have
20been required had he or she not been on furlough or leave of
21absence. To qualify for this creditable service, the
22firefighter must pay the required contributions to the fund not
23more than 90 days subsequent to the termination of the furlough
24or leave of absence, to the extent that the municipality has
25not made such contribution on his or her behalf.

 

 

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1    (c) Creditable service includes:
2        (1) Service in the military, naval or air forces of the
3    United States entered upon when the person was an active
4    firefighter, provided that, upon applying for a permanent
5    pension, and in accordance with the rules of the board the
6    firefighter pays into the fund the amount that would have
7    been contributed had he or she been a regular contributor
8    during such period of service, if and to the extent that
9    the municipality which the firefighter served made no such
10    contributions in his or her behalf. The total amount of
11    such creditable service shall not exceed 5 years, except
12    that any firefighter who on July 1, 1973 had more than 5
13    years of such creditable service shall receive the total
14    amount thereof as of that date.
15        (1.5) Up to 24 months of service in the military,
16    naval, or air forces of the United States that was served
17    prior to employment by a municipality or fire protection
18    district as a firefighter. To receive the credit for the
19    military service prior to the employment as a firefighter,
20    the firefighter must apply in writing to the fund and must
21    make contributions to the fund equal to (i) the employee
22    contributions that would have been required had the service
23    been rendered as a member, plus (ii) an amount determined
24    by the fund to be equal to the employer's normal cost of
25    the benefits accrued for that military service, plus (iii)
26    interest at the actuarially assumed rate provided by the

 

 

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1    Department of Financial and Professional Regulation,
2    compounded annually from the first date of membership in
3    the fund to the date of payment on items (i) and (ii). The
4    changes to this paragraph (1.5) by this amendatory Act of
5    the 95th General Assembly apply only to participating
6    employees in service on or after its effective date.
7        (2) Service prior to July 1, 1976 by a firefighter
8    initially excluded from participation by reason of age who
9    elected to participate and paid the required contributions
10    for such service.
11        (3) Up to 8 years of service by a firefighter as an
12    officer in a statewide firefighters' association when he is
13    on a leave of absence from a municipality's payroll,
14    provided that (i) the firefighter has at least 10 years of
15    creditable service as an active firefighter, (ii) the
16    firefighter contributes to the fund the amount that he
17    would have contributed had he remained an active member of
18    the fund, and (iii) the employee or statewide firefighter
19    association contributes to the fund an amount equal to the
20    employer's required contribution as determined by the
21    board, and (iv) for all leaves of absence under this
22    subdivision (3), including those beginning before the
23    effective date of this amendatory Act of the 97th General
24    Assembly, the firefighter continues to remain in sworn
25    status, subject to the professional standards of the public
26    employer or those terms established in statute.

 

 

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1        (4) Time spent as an on-call fireman for a
2    municipality, calculated at the rate of one year of
3    creditable service for each 5 years of time spent as an
4    on-call fireman, provided that (i) the firefighter has at
5    least 18 years of creditable service as an active
6    firefighter, (ii) the firefighter spent at least 14 years
7    as an on-call firefighter for the municipality, (iii) the
8    firefighter applies for such creditable service within 30
9    days after the effective date of this amendatory Act of
10    1989, (iv) the firefighter contributes to the Fund an
11    amount representing employee contributions for the number
12    of years of creditable service granted under this
13    subdivision (4), based on the salary and contribution rate
14    in effect for the firefighter at the date of entry into the
15    Fund, to be determined by the board, and (v) not more than
16    3 years of creditable service may be granted under this
17    subdivision (4).
18        Except as provided in Section 4-108.5, creditable
19    service shall not include time spent as a volunteer
20    firefighter, whether or not any compensation was received
21    therefor. The change made in this Section by Public Act
22    83-0463 is intended to be a restatement and clarification
23    of existing law, and does not imply that creditable service
24    was previously allowed under this Article for time spent as
25    a volunteer firefighter.
26        (5) Time served between July 1, 1976 and July 1, 1988

 

 

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1    in the position of protective inspection officer or
2    administrative assistant for fire services, for a
3    municipality with a population under 10,000 that is located
4    in a county with a population over 3,000,000 and that
5    maintains a firefighters' pension fund under this Article,
6    if the position included firefighting duties,
7    notwithstanding that the person may not have held an
8    appointment as a firefighter, provided that application is
9    made to the pension fund within 30 days after the effective
10    date of this amendatory Act of 1991, and the corresponding
11    contributions are paid for the number of years of service
12    granted, based upon the salary and contribution rate in
13    effect for the firefighter at the date of entry into the
14    pension fund, as determined by the Board.
15        (6) Service before becoming a participant by a
16    firefighter initially excluded from participation by
17    reason of age who becomes a participant under the amendment
18    to Section 4-107 made by this amendatory Act of 1993 and
19    pays the required contributions for such service.
20        (7) Up to 3 years of time during which the firefighter
21    receives a disability pension under Section 4-110,
22    4-110.1, or 4-111, provided that (i) the firefighter
23    returns to active service after the disability for a period
24    at least equal to the period for which credit is to be
25    established and (ii) the firefighter makes contributions
26    to the fund based on the rates specified in Section 4-118.1

 

 

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1    and the salary upon which the disability pension is based.
2    These contributions may be paid at any time prior to the
3    commencement of a retirement pension. The firefighter may,
4    but need not, elect to have the contributions deducted from
5    the disability pension or to pay them in installments on a
6    schedule approved by the board. If not deducted from the
7    disability pension, the contributions shall include
8    interest at the rate of 6% per year, compounded annually,
9    from the date for which service credit is being established
10    to the date of payment. If contributions are paid under
11    this subdivision (c)(7) in excess of those needed to
12    establish the credit, the excess shall be refunded. This
13    subdivision (c)(7) applies to persons receiving a
14    disability pension under Section 4-110, 4-110.1, or 4-111
15    on the effective date of this amendatory Act of the 91st
16    General Assembly, as well as persons who begin to receive
17    such a disability pension after that date.
18(Source: P.A. 94-856, eff. 6-15-06; 95-1056, eff. 4-10-09.)
 
19    (40 ILCS 5/5-214)  (from Ch. 108 1/2, par. 5-214)
20    Sec. 5-214. Credit for other service. Any participant in
21this fund (other than a member of the fire department of the
22city) who has rendered service as a member of the police
23department of the city for a period of 3 years or more is
24entitled to credit for the various purposes of this Article for
25service rendered prior to becoming a member or subsequent

 

 

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1thereto for the following periods:
2        (a) While on leave of absence from the police
3    department assigned or detailed to investigative,
4    protective, security or police work for the park district
5    of the city, the department of the Port of Chicago or the
6    sanitary district in which the city is located.
7        (b) As a temporary police officer in the city or while
8    serving in the office of the mayor or in the office of the
9    corporation counsel, as a member of the city council of the
10    city, as an employee of the Policemen's Annuity and Benefit
11    Fund created by this Article, as the head of an
12    organization whose membership consists of members of the
13    police department, the Public Vehicle License Commission
14    and the board of election commissioners of the city,
15    provided that, in each of these cases and for all periods
16    specified in this item (b), including those beginning
17    before the effective date of this amendatory Act of the
18    97th General Assembly, the police officer is on leave and
19    continues to remain in sworn status, subject to the
20    professional standards of the public employer or those
21    terms established in statute.
22        (c) While performing safety or investigative work for
23    the county in which such city is principally located or for
24    the State of Illinois or for the federal government, on
25    leave of absence from the department of police, or while
26    performing investigative work for the department as a

 

 

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1    civilian employee of the department.
2        (d) While on leave of absence from the police
3    department of the city and serving as the chief of police
4    of a police department outside the city.
5    No credit shall be granted in this fund, however, for this
6service if the policeman has credit therefor in any other
7annuity and benefit fund, or unless he contributes to this fund
8the amount he would have contributed with interest had he
9remained an active member of the police department in the
10position he occupied as a result of a civil service competitive
11examination, certification and appointment by the Civil
12Service Board; or in the case of a city operating under the
13provisions of a personnel ordinance the position he occupied as
14a result of a personnel ordinance competitive examination
15certification and appointment under the authority of a
16Municipal Personnel ordinance.
17    Concurrently with such contributions, the city shall
18contribute the amounts provided by this Article. No credit
19shall be allowed for any period of time for which contributions
20by the policeman have not been paid. The period of service
21rendered by such policeman prior to the date he became a member
22of the police department of the city or while detailed,
23assigned or on leave of absence and employed in any of the
24departments set forth hereinabove in this Section for which
25such policeman has contributed to this fund shall be credited
26to him as service for all the purposes of this Article, except

 

 

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1that he shall not have any of the rights conferred by the
2provisions of Sections 5-127 and 5-162 of this Article.
3    The changes in this Section made by Public Act 86-273 shall
4apply to members of the fund who have not begun receiving a
5pension under this Article on August 23, 1989, without regard
6to whether employment is terminated before that date.
7(Source: P.A. 86-273; 87-1265.)
 
8    (40 ILCS 5/6-209)  (from Ch. 108 1/2, par. 6-209)
9    Sec. 6-209. In computing the service rendered by a fireman
10prior to the effective date, the following periods shall be
11counted, in addition to all periods during which he performed
12the duties of his position, as periods of service for annuity
13purposes only: All periods of (a) vacation, (b) leave of
14absence with whole or part pay, (c) leave of absence without
15pay which were necessary on account of disability, and (d)
16leave of absence during which he was engaged in the military or
17naval service of the United States of America. Service credit
18shall not be allowed for any period during which a fireman was
19in receipt of pension on account of disability from any pension
20fund superseded by this fund.
21    In computing the service rendered by a fireman on and after
22the effective date, the following periods shall be counted in
23addition to all periods during which he performed the duties of
24his position, as periods of service for annuity purposes only:
25All periods of (a) vacation, (b) leave of absence with whole or

 

 

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1part pay, (c) leave of absence during which he was engaged in
2the military or naval service of the United States of America,
3(d) disability for which he receives any disability benefit,
4(e) disability for which he receives whole or part pay, (f)
5leave of absence, or other authorized relief from active duty,
6during which he served as president of The Firemen's
7Association of Chicago, provided that for all leaves of absence
8or other authorized relief under this item (f), including those
9beginning before the effective date of this amendatory Act of
10the 97th General Assembly, the fireman continues to remain in
11sworn status, subject to the professional standards of the
12public employer or those terms established in statute, (g)
13periods of suspension from duty not to exceed a total of one
14year during the total period of service of the fireman, and (h)
15a period of time not to exceed 23 days in 1980 in accordance
16with an agreement with the City on a settlement of strike;
17provided that the fireman elects to make contributions to the
18Fund for the various annuity and benefit purposes according to
19the provisions of this Article as though he were an active
20fireman, based upon the salary attached to the civil service
21rank held by him during such absence from duty, and if the
22fireman so elects, the city shall make the prescribed
23concurrent contributions for such annuity and benefit purposes
24as provided in this Article, all to the end that such fireman
25shall be entitled to receive the same annuities and benefits
26for which he would otherwise be eligible if he had continued as

 

 

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1an active fireman during the periods of absence from duty.
2    In computing service on and after the effective date for
3ordinary disability benefit, all periods described in the
4preceding paragraph, except any period for which a fireman
5receives ordinary disability benefit, shall be counted as
6periods of service.
7    In computing service for any of the purposes of this
8Article, credit shall be given for any periods prior to January
99, 1997, during which an active fireman (or fire paramedic) who
10is a member of the General Assembly is on leave of absence or
11is otherwise authorized to be absent from duty to enable him to
12perform his legislative duties, notwithstanding any reduction
13in salary for such periods and notwithstanding that the
14contributions paid by the fireman were based on such reduced
15salary rather than the full amount of salary attached to his
16civil service rank.
17    In computing service for any of the purposes of this
18Article, no credit shall be given for any period during which a
19fireman was not rendering active service because of his
20discharge from the service, unless proceedings to test the
21legality of the discharge are filed in a court of competent
22jurisdiction within one year from the date of discharge and a
23final judgment is entered therein declaring the discharge
24illegal.
25    No overtime or extra service shall be included in computing
26service of a fireman and not more than one year or a proper

 

 

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1fractional part thereof of service shall be allowed for service
2rendered during any calendar year.
3(Source: P.A. 86-273; 86-1488; 87-1265.)
 
4    (40 ILCS 5/8-138)  (from Ch. 108 1/2, par. 8-138)
5    Sec. 8-138. Minimum annuities - Additional provisions.
6    (a) An employee who withdraws after age 65 or more with at
7least 20 years of service, for whom the amount of age and
8service and prior service annuity combined is less than the
9amount stated in this Section, shall from the date of
10withdrawal, instead of all annuities otherwise provided, be
11entitled to receive an annuity for life of $150 a year, plus 1
121/2% for each year of service, to and including 20 years, and 1
132/3% for each year of service over 20 years, of his highest
14average annual salary for any 4 consecutive years within the
15last 10 years of service immediately preceding the date of
16withdrawal.
17    An employee who withdraws after 20 or more years of
18service, before age 65, shall be entitled to such annuity, to
19begin not earlier than upon attained age of 55 years if under
20such age at withdrawal, reduced by 2% for each full year or
21fractional part thereof that his attained age is less than 65,
22plus an additional 2% reduction for each full year or
23fractional part thereof that his attained age when annuity is
24to begin is less than 60 so that the total reduction at age 55
25shall be 30%.

 

 

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1    (b) An employee who withdraws after July 1, 1957, at age 60
2or over, with 20 or more years of service, for whom the age and
3service and prior service annuity combined, is less than the
4amount stated in this paragraph, shall, from the date of
5withdrawal, instead of such annuities, be entitled to receive
6an annuity for life equal to 1 2/3% for each year of service,
7of the highest average annual salary for any 5 consecutive
8years within the last 10 years of service immediately preceding
9the date of withdrawal; provided, that in the case of any
10employee who withdraws on or after July 1, 1971, such employee
11age 60 or over with 20 or more years of service, shall receive
12an annuity for life equal to 1.67% for each of the first 10
13years of service; 1.90% for each of the next 10 years of
14service; 2.10% for each year of service in excess of 20 but not
15exceeding 30; and 2.30% for each year of service in excess of
1630, based on the highest average annual salary for any 4
17consecutive years within the last 10 years of service
18immediately preceding the date of withdrawal.
19    An employee who withdraws after July 1, 1957 and before
20January 1, 1988, with 20 or more years of service, before age
2160 years is entitled to annuity, to begin not earlier than upon
22attained age of 55 years, if under such age at withdrawal, as
23computed in the last preceding paragraph, reduced 0.25% for
24each full month or fractional part thereof that his attained
25age when annuity is to begin is less than 60 if the employee
26was born before January 1, 1936, or 0.5% for each such month if

 

 

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1the employee was born on or after January 1, 1936.
2    Any employee born before January 1, 1936, who withdraws
3with 20 or more years of service, and any employee with 20 or
4more years of service who withdraws on or after January 1,
51988, may elect to receive, in lieu of any other employee
6annuity provided in this Section, an annuity for life equal to
71.80% for each of the first 10 years of service, 2.00% for each
8of the next 10 years of service, 2.20% for each year of service
9in excess of 20 but not exceeding 30, and 2.40% for each year
10of service in excess of 30, of the highest average annual
11salary for any 4 consecutive years within the last 10 years of
12service immediately preceding the date of withdrawal, to begin
13not earlier than upon attained age of 55 years, if under such
14age at withdrawal, reduced 0.25% for each full month or
15fractional part thereof that his attained age when annuity is
16to begin is less than 60; except that an employee retiring on
17or after January 1, 1988, at age 55 or over but less than age
1860, having at least 35 years of service, or an employee
19retiring on or after July 1, 1990, at age 55 or over but less
20than age 60, having at least 30 years of service, or an
21employee retiring on or after the effective date of this
22amendatory Act of 1997, at age 55 or over but less than age 60,
23having at least 25 years of service, shall not be subject to
24the reduction in retirement annuity because of retirement below
25age 60.
26    However, in the case of an employee who retired on or after

 

 

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1January 1, 1985 but before January 1, 1988, at age 55 or older
2and with at least 35 years of service, and who was subject
3under this subsection (b) to the reduction in retirement
4annuity because of retirement below age 60, that reduction
5shall cease to be effective January 1, 1991, and the retirement
6annuity shall be recalculated accordingly.
7    Any employee who withdraws on or after July 1, 1990, with
820 or more years of service, may elect to receive, in lieu of
9any other employee annuity provided in this Section, an annuity
10for life equal to 2.20% for each year of service if withdrawal
11is before January 1, 2002, or 2.40% for each year of service if
12withdrawal is on or after January 1, 2002, of the highest
13average annual salary for any 4 consecutive years within the
14last 10 years of service immediately preceding the date of
15withdrawal, to begin not earlier than upon attained age of 55
16years, if under such age at withdrawal, reduced 0.25% for each
17full month or fractional part thereof that his attained age
18when annuity is to begin is less than 60; except that an
19employee retiring at age 55 or over but less than age 60,
20having at least 30 years of service, shall not be subject to
21the reduction in retirement annuity because of retirement below
22age 60.
23    Any employee who withdraws on or after the effective date
24of this amendatory Act of 1997 with 20 or more years of service
25may elect to receive, in lieu of any other employee annuity
26provided in this Section, an annuity for life equal to 2.20%

 

 

HB3813 Enrolled- 27 -LRB097 13613 AMC 58149 b

1for each year of service, if withdrawal is before January 1,
22002, or 2.40% for each year of service if withdrawal is on or
3after January 1, 2002, of the highest average annual salary for
4any 4 consecutive years within the last 10 years of service
5immediately preceding the date of withdrawal, to begin not
6earlier than upon attainment of age 55 (age 50 if the employee
7has at least 30 years of service), reduced 0.25% for each full
8month or remaining fractional part thereof that the employee's
9attained age when annuity is to begin is less than 60; except
10that an employee retiring at age 50 or over with at least 30
11years of service or at age 55 or over with at least 25 years of
12service shall not be subject to the reduction in retirement
13annuity because of retirement below age 60.
14    The maximum annuity payable under part (a) and (b) of this
15Section shall not exceed 70% of highest average annual salary
16in the case of an employee who withdraws prior to July 1, 1971,
1775% if withdrawal takes place on or after July 1, 1971 and
18prior to January 1, 2002, or 80% if withdrawal takes place on
19or after January 1, 2002. For the purpose of the minimum
20annuity provided in this Section $1,500 is considered the
21minimum annual salary for any year; and the maximum annual
22salary for the computation of such annuity is $4,800 for any
23year before 1953, $6000 for the years 1953 to 1956, inclusive,
24and the actual annual salary, as salary is defined in this
25Article, for any year thereafter.
26    To preserve rights existing on December 31, 1959, for

 

 

HB3813 Enrolled- 28 -LRB097 13613 AMC 58149 b

1participants and contributors on that date to the fund created
2by the Court and Law Department Employees' Annuity Act, who
3became participants in the fund provided for on January 1,
41960, the maximum annual salary to be considered for such
5persons for the years 1955 and 1956 is $7,500.
6    (c) For an employee receiving disability benefit, his
7salary for annuity purposes under paragraphs (a) and (b) of
8this Section, for all periods of disability benefit subsequent
9to the year 1956, is the amount on which his disability benefit
10was based.
11    (d) An employee with 20 or more years of service, whose
12entire disability benefit credit period expires before
13attainment of age 55 while still disabled for service, is
14entitled upon withdrawal to the larger of (1) the minimum
15annuity provided above, assuming he is then age 55, and
16reducing such annuity to its actuarial equivalent as of his
17attained age on such date or (2) the annuity provided from his
18age and service and prior service annuity credits.
19    (e) The minimum annuity provisions do not apply to any
20former municipal employee receiving an annuity from the fund
21who re-enters service as a municipal employee, unless he
22renders at least 3 years of additional service after the date
23of re-entry.
24    (f) An employee in service on July 1, 1947, or who became a
25contributor after July 1, 1947 and before attainment of age 70,
26who withdraws after age 65, with less than 20 years of service

 

 

HB3813 Enrolled- 29 -LRB097 13613 AMC 58149 b

1for whom the annuity has been fixed under this Article shall,
2instead of the annuity so fixed, receive an annuity as follows:
3    Such amount as he could have received had the accumulated
4amounts for annuity been improved with interest at the
5effective rate to the date of his withdrawal, or to attainment
6of age 70, whichever is earlier, and had the city contributed
7to such earlier date for age and service annuity the amount
8that it would have contributed had he been under age 65, after
9the date his annuity was fixed in accordance with this Article,
10and assuming his annuity were computed from such accumulations
11as of his age on such earlier date. The annuity so computed
12shall not exceed the annuity which would be payable under the
13other provisions of this Section if the employee was credited
14with 20 years of service and would qualify for annuity
15thereunder.
16    (g) Instead of the annuity provided in this Article, an
17employee having attained age 65 with at least 15 years of
18service who withdraws from service on or after July 1, 1971 and
19whose annuity computed under other provisions of this Article
20is less than the amount provided under this paragraph, is
21entitled to a minimum annuity for life equal to 1% of the
22highest average annual salary, as salary is defined and limited
23in this Section for any 4 consecutive years within the last 10
24years of service for each year of service, plus the sum of $25
25for each year of service. The annuity shall not exceed 60% of
26such highest average annual salary.

 

 

HB3813 Enrolled- 30 -LRB097 13613 AMC 58149 b

1    (g-1) Instead of any other retirement annuity provided in
2this Article, an employee who has at least 10 years of service
3and withdraws from service on or after January 1, 1999 may
4elect to receive a retirement annuity for life, beginning no
5earlier than upon attainment of age 60, equal to 2.2% if
6withdrawal is before January 1, 2002, or 2.4% if withdrawal is
7on or after January 1, 2002, of final average salary for each
8year of service, subject to a maximum of 75% of final average
9salary if withdrawal is before January 1, 2002, or 80% if
10withdrawal is on or after January 1, 2002. For the purpose of
11calculating this annuity, "final average salary" means the
12highest average annual salary for any 4 consecutive years in
13the last 10 years of service. Nothwithstanding any provision of
14this subsection to the contrary, the "final average salary" for
15a participant that received credit under subsection (c) of
16Section 8-226 means the highest average salary for any 4
17consecutive years (or any 8 consecutive years if the employee
18first became a participant on or after January 1, 2011) in the
1910 years immediately prior to the leave of absence, and adding
20to that highest average salary, the product of (i) that highest
21average salary, (ii) the average percentage increase in the
22Consumer Price Index during each 12-month calendar year for the
23calendar years during the participant's leave of absence, and
24(iii) the length of the leave of absence in years, provided
25that this shall not exceed the participant's salary at the
26local labor organization. For purposes of this Section, the

 

 

HB3813 Enrolled- 31 -LRB097 13613 AMC 58149 b

1Consumer Price Index is the Consumer Price Index for All Urban
2Consumers for all items published by the United States
3Department of Labor.
4    (h) The minimum annuities provided under this Section shall
5be paid in equal monthly installments.
6    (i) The amendatory provisions of part (b) and (g) of this
7Section shall be effective July 1, 1971 and apply in the case
8of every qualifying employee withdrawing on or after July 1,
91971.
10    (j) The amendatory provisions of this amendatory Act of
111985 (P.A. 84-23) relating to the discount of annuity because
12of retirement prior to attainment of age 60, and to the
13retirement formula, for those born before January 1, 1936,
14shall apply only to qualifying employees withdrawing on or
15after July 18, 1985.
16    (j-1) The changes made to this Section by Public Act 92-609
17(increasing the retirement formula to 2.4% per year of service
18and increasing the maximum to 80%) apply to persons who
19withdraw from service on or after January 1, 2002, regardless
20of whether that withdrawal takes place before the effective
21date of that Act. In the case of a person who withdraws from
22service on or after January 1, 2002 but begins to receive a
23retirement annuity before July 1, 2002, the annuity shall be
24recalculated, with the increase resulting from Public Act
2592-609 accruing from the date the retirement annuity began. The
26changes made by Public Act 92-609 control over the changes made

 

 

HB3813 Enrolled- 32 -LRB097 13613 AMC 58149 b

1by Public Act 92-599, as provided in Section 95 of P.A. 92-609.
2    (k) Beginning on January 1, 1999, the minimum amount of
3employee's annuity shall be $850 per month for life for the
4following classes of employees, without regard to the fact that
5withdrawal occurred prior to the effective date of this
6amendatory Act of 1998:
7        (1) any employee annuitant alive and receiving a life
8    annuity on the effective date of this amendatory Act of
9    1998, except a reciprocal annuity;
10        (2) any employee annuitant alive and receiving a term
11    annuity on the effective date of this amendatory Act of
12    1998, except a reciprocal annuity;
13        (3) any employee annuitant alive and receiving a
14    reciprocal annuity on the effective date of this amendatory
15    Act of 1998, whose service in this fund is at least 5
16    years;
17        (4) any employee annuitant withdrawing after age 60 on
18    or after the effective date of this amendatory Act of 1998,
19    with at least 10 years of service in this fund.
20    The increases granted under items (1), (2) and (3) of this
21subsection (k) shall not be limited by any other Section of
22this Act.
23(Source: P.A. 95-331, eff. 8-21-07.)
 
24    (40 ILCS 5/8-226)  (from Ch. 108 1/2, par. 8-226)
25    Sec. 8-226. Computation of service. In computing the term

 

 

HB3813 Enrolled- 33 -LRB097 13613 AMC 58149 b

1of service of an employee prior to the effective date, the
2entire period beginning on the date he was first appointed and
3ending on the day before the effective date, except any
4intervening period during which he was separated by withdrawal
5from service, shall be counted for all purposes of this
6Article, except that for any employee who was not in service on
7the day before the effective date, service rendered prior to
8such date shall not be considered for the purposes of Section
98-138.
10    For a person employed by an employer for whom this Article
11was in effect prior to January 1, 1950, from whose salary
12deductions are first made under this Article after December 31,
131949, any period of service rendered prior to the effective
14date, unless he was in service on the day before the effective
15date, shall not be counted as service.
16    The time a person was an employee of any territory annexed
17to the city prior to the effective date shall be counted as a
18period of service.
19    In computing the term of service of any employee subsequent
20to the day before the effective date, the following periods
21shall be counted as periods of service for age and service,
22widow's and child's annuity purposes:
23        (a) The time during which he performed the duties of
24    his position;
25        (b) Vacations, leaves of absence with whole or part
26    pay, and leaves of absence without pay not longer than 90

 

 

HB3813 Enrolled- 34 -LRB097 13613 AMC 58149 b

1    days;
2        (c) Leaves of absence without pay that begin before the
3    effective date of this amendatory Act of the 97th General
4    Assembly and during which a participant is employed
5    full-time by a local labor organization that represents
6    municipal employees, provided that (1) the participant
7    continues to make employee contributions to the Fund as
8    though he were an active employee, based on the regular
9    salary rate received by the participant for his municipal
10    employment immediately prior to such leave of absence (and
11    in the case of such employment prior to December 9, 1987,
12    pays to the Fund an amount equal to the employee
13    contributions for such employment plus regular interest
14    thereon as calculated by the board), and based on his
15    current salary with such labor organization after the
16    effective date of this amendatory Act of 1991, (2) after
17    January 1, 1989 the participant, or the labor organization
18    on the participant's behalf, makes contributions to the
19    Fund as though it were the employer, in the same amount and
20    same manner as specified under this Article, based on the
21    regular salary rate received by the participant for his
22    municipal employment immediately prior to such leave of
23    absence, and based on his current salary with such labor
24    organization after the effective date of this amendatory
25    Act of 1991, and (3) the participant does not receive
26    credit in any pension plan established by the local labor

 

 

HB3813 Enrolled- 35 -LRB097 13613 AMC 58149 b

1    organization based on his employment by the organization;
2        (d) Any period of disability for which he received (i)
3    a disability benefit under this Article, or (ii) a
4    temporary total disability benefit under the Workers'
5    Compensation Act if the disability results from a condition
6    commonly termed heart attack or stroke or any other
7    condition falling within the broad field of coronary
8    involvement or heart disease, or (iii) whole or part pay;
9        (e) Any period for which contributions and service
10    credit have been transferred to this Fund under subsection
11    (d) of Section 9-121.1 or subsection (d) of Section
12    12-127.1 of this Code.
13    For a person employed by an employer in which the 1921 Act
14was in effect prior to January 1, 1950, from whose salary
15deductions are first made under the 1921 Act or this Article
16after December 31, 1949, any period of service rendered
17subsequent to the effective date and prior to the date he
18became an employee and contributor, shall not be counted as a
19period of service under this Article, except such period for
20which he made payment as provided in Section 8-230 of this
21Article, in which case such period shall be counted as a period
22of service for all annuity purposes hereunder.
23    In computing the term of service of an employee subsequent
24to the day before the effective date for ordinary disability
25benefit purposes, all periods described in the preceding
26paragraph, except any such period for which he receives

 

 

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1ordinary disability benefit, shall be counted as periods of
2service; provided, that for any person employed by an employer
3in which this Article was in effect prior to January 1, 1950,
4from whose salary deductions are first made under this Article
5after December 31, 1949, any period of service rendered
6subsequent to the effective date and prior to the date he
7became an employee and contributor, shall not be counted as a
8period of service for ordinary disability benefit purposes,
9unless the person made payment for the period as provided in
10Section 8-230 of this Article, in which case the period shall
11be counted as a period of service for ordinary disability
12purposes for periods of disability on or after the effective
13date of this amendatory Act of 1997.
14    Overtime or extra service shall not be included in
15computing any term of service. Not more than 1 year of service
16shall be allowed for service rendered during any calendar year.
17    For the purposes of this Section, the phrase "any pension
18plan established by the local labor organization" means any
19pension plan in which a participant may receive credit as a
20result of his or her membership in the local labor
21organization, including, but not limited to, the local labor
22organization itself and its affiliates at the local,
23intrastate, State, multi-state, national, or international
24level. The definition of this phrase is a declaration of
25existing law and shall not be construed as a new enactment.
26(Source: P.A. 90-511, eff. 8-22-97.)
 

 

 

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1    (40 ILCS 5/8-233)  (from Ch. 108 1/2, par. 8-233)
2    Sec. 8-233. Basis of annual salary. For the purpose of this
3Article, the annual salary of an employee whose salary or wage
4is appropriated, fixed, or arranged in the annual appropriation
5ordinance upon other than an annual basis shall be determined
6as follows:
7    (a) If the employee is paid on a monthly basis, the annual
8salary is 12 times the monthly salary. If the employee is paid
9on a weekly basis, the annual salary is 52 times the weekly
10salary.
11    "Monthly salary" means the amount of compensation or salary
12appropriated and payable for a normal and regular month's work
13in the employee's position in the service. "Weekly salary"
14means the amount of compensation or salary appropriated and
15payable for a normal and regular week's work in the employee's
16position in the service. If the work is on a regularly
17scheduled part time basis, then "monthly salary" and "weekly
18salary" refer, respectively, to the part time monthly or weekly
19salary.
20    If the appropriation for the position is for a shorter
21period than 12 months a year, or 52 weeks a year if on a weekly
22basis, or the employee is in a class, grade, or category in
23which the employee normally works for fewer than 12 months or
2452 weeks a year, then the basis shall be adjusted downward to
25the extent that the appropriated or customary work period is

 

 

HB3813 Enrolled- 38 -LRB097 13613 AMC 58149 b

1less than the normal 12 months or 52 weeks of service in a
2year.
3    Compensation for overtime, at regular or overtime rates,
4that is paid in addition to the appropriated regular and normal
5monthly or weekly salary shall not be considered.
6    (b) If the employee is paid on a daily basis, the annual
7salary is 260 times the daily wage. If the employee is paid on
8an hourly basis, the annual salary is 2080 times the hourly
9wage.
10    The norm is based on a 12-month per year, 5-day work week
11of 8 hours per day and 40 hours per week, with consideration
12given only to time compensated for at the straight time rate of
13compensation or wage. The norm shall be increased (subject to a
14maximum of 300 days or 2400 hours per year) or decreased for an
15employee to the extent that the normal and established work
16period, at the straight time compensation or wage for the
17position held in the class, grade, or category in which the
18employee is assigned, is for a greater or lesser number of
19months, weeks, days, or hours than the period on which the
20established norm is based.
21    "Daily wage" and "hourly wage" mean, respectively, the
22normal, regular, or basic straight time rate of compensation or
23wage appropriated and payable for a normal and regular day's
24work, or hour's work, in the employee's position in the
25service.
26    Any time worked in excess of the norm (or the increased or

 

 

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1decreased norm, whichever is applicable) that is compensated
2for at overtime, premium, or other than regular or basic
3straight time rates shall not be considered as time worked, and
4the compensation for that work shall not be considered as
5salary or wage. Such time and compensation shall in every case
6and for all purposes be considered overtime and shall be
7excluded for all purposes under this Article. However, the
8straight time portion of compensation or wage, for time worked
9on holidays that fall within an employee's established norm,
10shall be included for all purposes under this Article.
11    (c) For minimum annuity purposes under Section 8-138, where
12a salary rate change occurs during the year, it shall be
13considered that the annual salary for that year is (1) the
14annual equivalent of the monthly, weekly, daily, or hourly
15salary or wage rate that was applicable for the greater number
16of months, weeks, days, or hours (whichever is applicable) in
17the year under consideration, or (2) the annual equivalent of
18the average salary or wage rate in effect for the employee
19during the year, whichever is greater. The average salary or
20wage rate shall be calculated by multiplying each salary or
21wage rate in effect for the employee during the year by the
22number of months, weeks, days, or hours (whichever is
23applicable) during which that rate was in effect, and dividing
24the sum of the resulting products by the total number of
25months, weeks, days, or hours (whichever is applicable) worked
26by the employee during the year.

 

 

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1    (d) The changes to subsection (c) made by this amendatory
2Act of 1997 apply to persons withdrawing from service on or
3after July 1, 1990 and for each such person are intended to be
4retroactive to the date upon which the affected annuity began.
5The Fund shall recompute the affected annuity and shall pay the
6additional amount due for the period before the increase
7resulting from this amendatory Act in a lump sum, without
8interest.
9    (e) This Article shall not be construed to authorize a
10salary paid by an entity other than an employer, as defined in
11Section 8-110, to be used to calculate the highest average
12annual salary of a participant. This subsection (e) is a
13declaration of existing law and shall not be construed as a new
14enactment.
15(Source: P.A. 90-31, eff. 6-27-97.)
 
16    (40 ILCS 5/9-219)  (from Ch. 108 1/2, par. 9-219)
17    Sec. 9-219. Computation of service.
18    (1) In computing the term of service of an employee prior
19to the effective date, the entire period beginning on the date
20he was first appointed and ending on the day before the
21effective date, except any intervening period during which he
22was separated by withdrawal from service, shall be counted for
23all purposes of this Article.
24    (2) In computing the term of service of any employee on or
25after the effective date, the following periods of time shall

 

 

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1be counted as periods of service for age and service, widow's
2and child's annuity purposes:
3        (a) The time during which he performed the duties of
4    his position.
5        (b) Vacations, leaves of absence with whole or part
6    pay, and leaves of absence without pay not longer than 90
7    days.
8        (c) For an employee who is a member of a county police
9    department or a correctional officer with the county
10    department of corrections, approved leaves of absence
11    without pay during which the employee serves as a full-time
12    officer or employee of an employee association, the
13    membership of which consists of other participants in the
14    Fund, provided that the employee contributes to the Fund
15    (1) the amount that he would have contributed had he
16    remained an active employee in the position he occupied at
17    the time the leave of absence was granted, (2) an amount
18    calculated by the Board representing employer
19    contributions, and (3) regular interest thereon from the
20    date of service to the date of payment. However, if the
21    employee's application to establish credit under this
22    subsection is received by the Fund on or after July 1, 2002
23    and before July 1, 2003, the amount representing employer
24    contributions specified in item (2) shall be waived.
25        For a former member of a county police department who
26    has received a refund under Section 9-164, periods during

 

 

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1    which the employee serves as head of an employee
2    association, the membership of which consists of other
3    police officers, provided that the employee contributes to
4    the Fund (1) the amount that he would have contributed had
5    he remained an active member of the county police
6    department in the position he occupied at the time he left
7    service, (2) an amount calculated by the Board representing
8    employer contributions, and (3) regular interest thereon
9    from the date of service to the date of payment. However,
10    if the former member of the county police department
11    retires on or after January 1, 1993 but no later than March
12    1, 1993, the amount representing employer contributions
13    specified in item (2) shall be waived.
14        For leaves of absence to which this item (c) applies
15    and for other periods to which this item (c) applies,
16    including those leaves of absence and other periods of
17    service beginning before the effective date of this
18    amendatory Act of the 97th General Assembly, the employee
19    or former member must continue to remain in sworn status,
20    subject to the professional standards of the public
21    employer or those terms established in statute.
22        (d) Any period of disability for which he received
23    disability benefit or whole or part pay.
24        (e) Accumulated vacation or other time for which an
25    employee who retires on or after November 1, 1990 receives
26    a lump sum payment at the time of retirement, provided that

 

 

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1    contributions were made to the fund at the time such lump
2    sum payment was received. The service granted for the lump
3    sum payment shall not change the employee's date of
4    withdrawal for computing the effective date of the annuity.
5        (f) An employee may receive service credit for annuity
6    purposes for accumulated sick leave as of the date of the
7    employee's withdrawal from service, not to exceed a total
8    of 180 days, provided that the amount of such accumulated
9    sick leave is certified by the County Comptroller to the
10    Board and the employee pays an amount equal to 8.5% (9% for
11    members of the County Police Department who are eligible to
12    receive an annuity under Section 9-128.1) of the amount
13    that would have been paid had such accumulated sick leave
14    been paid at the employee's final rate of salary. Such
15    payment shall be made within 30 days after the date of
16    withdrawal and prior to receipt of the first annuity check.
17    The service credit granted for such accumulated sick leave
18    shall not change the employee's date of withdrawal for the
19    purpose of computing the effective date of the annuity.
20    (3) In computing the term of service of an employee on or
21after the effective date for ordinary disability benefit
22purposes, the following periods of time shall be counted as
23periods of service:
24        (a) Unless otherwise specified in Section 9-157, the
25    time during which he performed the duties of his position.
26        (b) Paid vacations and leaves of absence with whole or

 

 

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1    part pay.
2        (c) Any period for which he received duty disability
3    benefit.
4        (d) Any period of disability for which he received
5    whole or part pay.
6    (4) For an employee who on January 1, 1958, was transferred
7by Act of the 70th General Assembly from his position in a
8department of welfare of any city located in the county in
9which this Article is in force and effect to a similar position
10in a department of such county, service shall also be credited
11for ordinary disability benefit and child's annuity for such
12period of department of welfare service during which period he
13was a contributor to a statutory annuity and benefit fund in
14such city and for which purposes service credit would otherwise
15not be credited by virtue of such involuntary transfer.
16    (5) An employee described in subsection (e) of Section
179-108 shall receive credit for child's annuity and ordinary
18disability benefit for the period of time for which he was
19credited with service in the fund from which he was
20involuntarily separated through class or group transfer;
21provided, that no such credit shall be allowed to the extent
22that it results in a duplication of credits or benefits, and
23neither shall such credit be allowed to the extent that it was
24or may be forfeited by the application for and acceptance of a
25refund from the fund from which the employee was transferred.
26    (6) Overtime or extra service shall not be included in

 

 

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1computing service. Not more than 1 year of service shall be
2allowed for service rendered during any calendar year.
3(Source: P.A. 92-599, eff. 6-28-02.)
 
4    (40 ILCS 5/11-134)  (from Ch. 108 1/2, par. 11-134)
5    Sec. 11-134. Minimum annuities.
6    (a) An employee whose withdrawal occurs after July 1, 1957
7at age 60 or over, with 20 or more years of service, (as
8service is defined or computed in Section 11-216), for whom the
9age and service and prior service annuity combined is less than
10the amount stated in this Section, shall, from and after the
11date of withdrawal, in lieu of all annuities otherwise provided
12in this Article, be entitled to receive an annuity for life of
13an amount equal to 1 2/3% for each year of service, of the
14highest average annual salary for any 5 consecutive years
15within the last 10 years of service immediately preceding the
16date of withdrawal; provided, that in the case of any employee
17who withdraws on or after July 1, 1971, such employee age 60 or
18over with 20 or more years of service, shall be entitled to
19instead receive an annuity for life equal to 1.67% for each of
20the first 10 years of service; 1.90% for each of the next 10
21years of service; 2.10% for each year of service in excess of
2220 but not exceeding 30; and 2.30% for each year of service in
23excess of 30, based on the highest average annual salary for
24any 4 consecutive years within the last 10 years of service
25immediately preceding the date of withdrawal.

 

 

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1    An employee who withdraws after July 1, 1957 and before
2January 1, 1988, with 20 or more years of service, before age
360, shall be entitled to an annuity, to begin not earlier than
4age 55, if under such age at withdrawal, as computed in the
5last preceding paragraph, reduced 0.25% if the employee was
6born before January 1, 1936, or 0.5% if the employee was born
7on or after January 1, 1936, for each full month or fractional
8part thereof that his attained age when such annuity is to
9begin is less than 60.
10    Any employee born before January 1, 1936 who withdraws with
1120 or more years of service, and any employee with 20 or more
12years of service who withdraws on or after January 1, 1988, may
13elect to receive, in lieu of any other employee annuity
14provided in this Section, an annuity for life equal to 1.80%
15for each of the first 10 years of service, 2.00% for each of
16the next 10 years of service, 2.20% for each year of service in
17excess of 20, but not exceeding 30, and 2.40% for each year of
18service in excess of 30, of the highest average annual salary
19for any 4 consecutive years within the last 10 years of service
20immediately preceding the date of withdrawal, to begin not
21earlier than upon attained age of 55 years, if under such age
22at withdrawal, reduced 0.25% for each full month or fractional
23part thereof that his attained age when annuity is to begin is
24less than 60; except that an employee retiring on or after
25January 1, 1988, at age 55 or over but less than age 60, having
26at least 35 years of service, or an employee retiring on or

 

 

HB3813 Enrolled- 47 -LRB097 13613 AMC 58149 b

1after July 1, 1990, at age 55 or over but less than age 60,
2having at least 30 years of service, or an employee retiring on
3or after the effective date of this amendatory Act of 1997, at
4age 55 or over but less than age 60, having at least 25 years of
5service, shall not be subject to the reduction in retirement
6annuity because of retirement below age 60.
7    However, in the case of an employee who retired on or after
8January 1, 1985 but before January 1, 1988, at age 55 or older
9and with at least 35 years of service, and who was subject
10under this subsection (a) to the reduction in retirement
11annuity because of retirement below age 60, that reduction
12shall cease to be effective January 1, 1991, and the retirement
13annuity shall be recalculated accordingly.
14    Any employee who withdraws on or after July 1, 1990, with
1520 or more years of service, may elect to receive, in lieu of
16any other employee annuity provided in this Section, an annuity
17for life equal to 2.20% for each year of service if withdrawal
18is before January 1, 2002, or 2.40% for each year of service if
19withdrawal is on or after January 1, 2002, of the highest
20average annual salary for any 4 consecutive years within the
21last 10 years of service immediately preceding the date of
22withdrawal, to begin not earlier than upon attained age of 55
23years, if under such age at withdrawal, reduced 0.25% for each
24full month or fractional part thereof that his attained age
25when annuity is to begin is less than 60; except that an
26employee retiring at age 55 or over but less than age 60,

 

 

HB3813 Enrolled- 48 -LRB097 13613 AMC 58149 b

1having at least 30 years of service, shall not be subject to
2the reduction in retirement annuity because of retirement below
3age 60.
4    Any employee who withdraws on or after the effective date
5of this amendatory Act of 1997 with 20 or more years of service
6may elect to receive, in lieu of any other employee annuity
7provided in this Section, an annuity for life equal to 2.20%
8for each year of service if withdrawal is before January 1,
92002, or 2.40% for each year of service if withdrawal is on or
10after January 1, 2002, of the highest average annual salary for
11any 4 consecutive years within the last 10 years of service
12immediately preceding the date of withdrawal, to begin not
13earlier than upon attainment of age 55 (age 50 if the employee
14has at least 30 years of service), reduced 0.25% for each full
15month or remaining fractional part thereof that the employee's
16attained age when annuity is to begin is less than 60; except
17that an employee retiring at age 50 or over with at least 30
18years of service or at age 55 or over with at least 25 years of
19service shall not be subject to the reduction in retirement
20annuity because of retirement below age 60.
21    The maximum annuity payable under this paragraph (a) of
22this Section shall not exceed 70% of highest average annual
23salary in the case of an employee who withdraws prior to July
241, 1971, 75% if withdrawal takes place on or after July 1, 1971
25and prior to January 1, 2002, or 80% if withdrawal is on or
26after January 1, 2002. For the purpose of the minimum annuity

 

 

HB3813 Enrolled- 49 -LRB097 13613 AMC 58149 b

1provided in said paragraphs $1,500 shall be considered the
2minimum annual salary for any year; and the maximum annual
3salary to be considered for the computation of such annuity
4shall be $4,800 for any year prior to 1953, $6,000 for the
5years 1953 to 1956, inclusive, and the actual annual salary, as
6salary is defined in this Article, for any year thereafter.
7    (b) For an employee receiving disability benefit, his
8salary for annuity purposes under this Section shall, for all
9periods of disability benefit subsequent to the year 1956, be
10the amount on which his disability benefit was based.
11    (c) An employee with 20 or more years of service, whose
12entire disability benefit credit period expires prior to
13attainment of age 55 while still disabled for service, shall be
14entitled upon withdrawal to the larger of (1) the minimum
15annuity provided above assuming that he is then age 55, and
16reducing such annuity to its actuarial equivalent at his
17attained age on such date, or (2) the annuity provided from his
18age and service and prior service annuity credits.
19    (d) The minimum annuity provisions as aforesaid shall not
20apply to any former employee receiving an annuity from the
21fund, and who re-enters service as an employee, unless he
22renders at least 3 years of additional service after the date
23of re-entry.
24    (e) An employee in service on July 1, 1947, or who became a
25contributor after July 1, 1947 and prior to July 1, 1950, or
26who shall become a contributor to the fund after July 1, 1950

 

 

HB3813 Enrolled- 50 -LRB097 13613 AMC 58149 b

1prior to attainment of age 70, who withdraws after age 65 with
2less than 20 years of service, for whom the annuity has been
3fixed under the foregoing Sections of this Article shall, in
4lieu of the annuity so fixed, receive an annuity as follows:
5    Such amount as he could have received had the accumulated
6amounts for annuity been improved with interest at the
7effective rate to the date of his withdrawal, or to attainment
8of age 70, whichever is earlier, and had the city contributed
9to such earlier date for age and service annuity the amount
10that would have been contributed had he been under age 65,
11after the date his annuity was fixed in accordance with this
12Article, and assuming his annuity were computed from such
13accumulations as of his age on such earlier date. The annuity
14so computed shall not exceed the annuity which would be payable
15under the other provisions of this Section if the employee was
16credited with 20 years of service and would qualify for annuity
17thereunder.
18    (f) In lieu of the annuity provided in this or in any other
19Section of this Article, an employee having attained age 65
20with at least 15 years of service who withdraws from service on
21or after July 1, 1971 and whose annuity computed under other
22provisions of this Article is less than the amount provided
23under this paragraph shall be entitled to receive a minimum
24annual annuity for life equal to 1% of the highest average
25annual salary for any 4 consecutive years within the last 10
26years of service immediately preceding retirement for each year

 

 

HB3813 Enrolled- 51 -LRB097 13613 AMC 58149 b

1of his service plus the sum of $25 for each year of service.
2Such annual annuity shall not exceed the maximum percentages
3stated under paragraph (a) of this Section of such highest
4average annual salary.
5    (f-1) Instead of any other retirement annuity provided in
6this Article, an employee who has at least 10 years of service
7and withdraws from service on or after January 1, 1999 may
8elect to receive a retirement annuity for life, beginning no
9earlier than upon attainment of age 60, equal to 2.2% if
10withdrawal is before January 1, 2002, or 2.4% for each year of
11service if withdrawal is on or after January 1, 2002, of final
12average salary for each year of service, subject to a maximum
13of 75% of final average salary if withdrawal is before January
141, 2002, or 80% if withdrawal is on or after January 1, 2002.
15For the purpose of calculating this annuity, "final average
16salary" means the highest average annual salary for any 4
17consecutive years in the last 10 years of service.
18Nothwithstanding any provision of this subsection to the
19contrary, the "final average salary" for a participant that
20received credit under item (3) of subsection (c) of Section
2111-215 means the highest average salary for any 4 consecutive
22years (or any 8 consecutive years if the employee first became
23a participant on or after January 1, 2011) in the 10 years
24immediately prior to the leave of absence, and adding to that
25highest average salary, the product of (i) that highest average
26salary, (ii) the average percentage increase in the Consumer

 

 

HB3813 Enrolled- 52 -LRB097 13613 AMC 58149 b

1Price Index during each 12-month calendar year for the calendar
2years during the participant's leave of absence, and (iii) the
3length of the leave of absence in years, provided that this
4shall not exceed the participant's salary at the local labor
5organization. For purposes of this Section, the Consumer Price
6Index is the Consumer Price Index for All Urban Consumers for
7all items published by the United States Department of Labor.
8    (g) Any annuity payable under the preceding subsections of
9this Section 11-134 shall be paid in equal monthly
10installments.
11    (h) The amendatory provisions of part (a) and (f) of this
12Section shall be effective July 1, 1971 and apply in the case
13of every qualifying employee withdrawing on or after July 1,
141971.
15    (h-1) The changes made to this Section by Public Act 92-609
16(increasing the retirement formula to 2.4% per year of service
17and increasing the maximum to 80%) apply to persons who
18withdraw from service on or after January 1, 2002, regardless
19of whether that withdrawal takes place before the effective
20date of that Act. In the case of a person who withdraws from
21service on or after January 1, 2002 but begins to receive a
22retirement annuity before July 1, 2002, the annuity shall be
23recalculated, with the increase resulting from Public Act
2492-609 accruing from the date the retirement annuity began. The
25changes made by Public Act 92-609 control over the changes made
26by Public Act 92-599, as provided in Section 95 of P.A. 92-609.

 

 

HB3813 Enrolled- 53 -LRB097 13613 AMC 58149 b

1    (i) The amendatory provisions of this amendatory Act of
21985 relating to the discount of annuity because of retirement
3prior to attainment of age 60 and increasing the retirement
4formula for those born before January 1, 1936, shall apply only
5to qualifying employees withdrawing on or after August 16,
61985.
7    (j) Beginning on January 1, 1999, the minimum amount of
8employee's annuity shall be $850 per month for life for the
9following classes of employees, without regard to the fact that
10withdrawal occurred prior to the effective date of this
11amendatory Act of 1998:
12        (1) any employee annuitant alive and receiving a life
13    annuity on the effective date of this amendatory Act of
14    1998, except a reciprocal annuity;
15        (2) any employee annuitant alive and receiving a term
16    annuity on the effective date of this amendatory Act of
17    1998, except a reciprocal annuity;
18        (3) any employee annuitant alive and receiving a
19    reciprocal annuity on the effective date of this amendatory
20    Act of 1998, whose service in this fund is at least 5
21    years;
22        (4) any employee annuitant withdrawing after age 60 on
23    or after the effective date of this amendatory Act of 1998,
24    with at least 10 years of service in this fund.
25    The increases granted under items (1), (2) and (3) of this
26subsection (j) shall not be limited by any other Section of

 

 

HB3813 Enrolled- 54 -LRB097 13613 AMC 58149 b

1this Act.
2(Source: P.A. 95-331, eff. 8-21-07.)
 
3    (40 ILCS 5/11-215)  (from Ch. 108 1/2, par. 11-215)
4    Sec. 11-215. Computation of service.
5    (a) In computing the term of service of an employee prior
6to the effective date, the entire period beginning on the date
7he was first appointed and ending on the day before the
8effective date, except any intervening period during which he
9was separated by withdrawal from service, shall be counted for
10all purposes of this Article. Only the first year of each
11period of lay-off or leave of absence without pay, continuing
12or extending for a period in excess of one year, shall be
13counted as such service.
14    (b) For a person employed by an employer for whom this
15Article was in effect prior to August 1, 1949, from whose
16salary deductions are first made under this Article after July
1731, 1949, any period of service rendered prior to the effective
18date, unless he was in service on the day before the effective
19date, shall not be counted as service.
20    (c) In computing the term of service of an employee
21subsequent to the day before the effective date, the following
22periods of time shall be counted as periods of service for
23annuity purposes:
24        (1) the time during which he performed the duties of
25    his position;

 

 

HB3813 Enrolled- 55 -LRB097 13613 AMC 58149 b

1        (2) leaves of absence with whole or part pay, and
2    leaves of absence without pay not longer than 90 days;
3        (3) leaves of absence without pay that begin before the
4    effective date of this amendatory Act of the 97th General
5    Assembly and during which a participant is employed
6    full-time by a local labor organization that represents
7    municipal employees, provided that (A) the participant
8    continues to make employee contributions to the Fund as
9    though he were an active employee, based on the regular
10    salary rate received by the participant for his municipal
11    employment immediately prior to such leave of absence (and
12    in the case of such employment prior to December 9, 1987,
13    pays to the Fund an amount equal to the employee
14    contributions for such employment plus regular interest
15    thereon as calculated by the board), and based on his
16    current salary with such labor organization after the
17    effective date of this amendatory Act of 1991, (B) after
18    January 1, 1989 the participant, or the labor organization
19    on the participant's behalf, makes contributions to the
20    Fund as though it were the employer, in the same amount and
21    same manner as specified under this Article, based on the
22    regular salary rate received by the participant for his
23    municipal employment immediately prior to such leave of
24    absence, and based on his current salary with such labor
25    organization after the effective date of this amendatory
26    Act of 1991, and (C) the participant does not receive

 

 

HB3813 Enrolled- 56 -LRB097 13613 AMC 58149 b

1    credit in any pension plan established by the local labor
2    organization based on his employment by the organization;
3        (4) any period of disability for which he received (i)
4    a disability benefit under this Article, or (ii) a
5    temporary total disability benefit under the Workers'
6    Compensation Act if the disability results from a condition
7    commonly termed heart attack or stroke or any other
8    condition falling within the broad field of coronary
9    involvement or heart disease, or (iii) whole or part pay.
10    (d) For a person employed by an employer, or the retirement
11board, in which "The 1935 Act" was in effect prior to August 1,
121949, from whose salary deductions are first made under "The
131935 Act" or this Article after July 31, 1949, any period of
14service rendered subsequent to the effective date and prior to
15August 1, 1949, shall not be counted as a period of service
16under this Article, except such period for which he made
17payment, as provided in Section 11-221 of this Article, in
18which case such period shall be counted as a period of service
19for all annuity purposes hereunder.
20    (e) In computing the term of service of an employee
21subsequent to the day before the effective date for ordinary
22disability benefit purposes, the following periods of time
23shall be counted as periods of service:
24        (1) any period during which he performed the duties of
25    his position;
26        (2) leaves of absence with whole or part pay;

 

 

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1        (3) any period of disability for which he received (i)
2    a duty disability benefit under this Article, or (ii) a
3    temporary total disability benefit under the Workers'
4    Compensation Act if the disability results from a condition
5    commonly termed heart attack or stroke or any other
6    condition falling within the broad field of coronary
7    involvement or heart disease, or (iii) whole or part pay.
8    However, any period of service rendered by an employee
9contributor prior to the date he became a contributor to the
10fund shall not be counted as a period of service for ordinary
11disability purposes, unless the person made payment for the
12period as provided in Section 11-221 of this Article, in which
13case the period shall be counted as a period of service for
14ordinary disability purposes for periods of disability on or
15after the effective date of this amendatory Act of 1997.
16    Overtime or extra service shall not be included in
17computing any term of service. Not more than 1 year of service
18shall be allowed for service rendered during any calendar year.
19    For the purposes of this Section, the phrase "any pension
20plan established by the local labor organization" means any
21pension plan in which a participant may receive credit as a
22result of his or her membership in the local labor
23organization, including, but not limited to, the local labor
24organization itself and its affiliates at the local,
25intrastate, State, multi-state, national, or international
26level. The definition of this phrase is a declaration of

 

 

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1existing law and shall not be construed as a new enactment.
2(Source: P.A. 90-511, eff. 8-22-97.)
 
3    (40 ILCS 5/11-217)  (from Ch. 108 1/2, par. 11-217)
4    Sec. 11-217. Basis of annual salary. For the purpose of
5this Article, the annual salary of an employee whose salary or
6wage is appropriated, fixed, or arranged in the annual
7appropriation ordinance upon other than an annual basis shall
8be determined as follows:
9    (a) If the employee is paid on a monthly basis, the annual
10salary is 12 times the monthly salary. If the employee is paid
11on a weekly basis, the annual salary is 52 times the weekly
12salary.
13    "Monthly salary" means the amount of compensation or salary
14appropriated and payable for a normal and regular month's work
15in the employee's position in the service. "Weekly salary"
16means the amount of compensation or salary appropriated and
17payable for a normal and regular week's work in the employee's
18position in the service. If the work is on a regularly
19scheduled part time basis, then "monthly salary" and "weekly
20salary" refer, respectively, to the part time monthly or weekly
21salary.
22    If the appropriation for the position is for a shorter
23period than 12 months a year, or 52 weeks a year if on a weekly
24basis, or the employee is in a class, grade, or category in
25which the employee normally works for fewer than 12 months or

 

 

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152 weeks a year, then the basis shall be adjusted downward to
2the extent that the appropriated or customary work period is
3less than the normal 12 months or 52 weeks of service in a
4year.
5    Compensation for overtime, at regular or overtime rates,
6that is paid in addition to the appropriated regular and normal
7monthly or weekly salary shall not be considered.
8    (b) If the employee is paid on a daily basis, the annual
9salary is 260 times the daily wage. If the employee is paid on
10an hourly basis, the annual salary is 2080 times the hourly
11wage.
12    The norm is based on a 12-month per year, 5-day work week
13of 8 hours per day and 40 hours per week, with consideration
14given only to time compensated for at the straight time rate of
15compensation or wage. The norm shall be increased (subject to a
16maximum of 300 days or 2400 hours per year) or decreased for an
17employee to the extent that the normal and established work
18period, at the straight time compensation or wage for the
19position held in the class, grade, or category in which the
20employee is assigned, is for a greater or lesser number of
21months, weeks, days, or hours than the period on which the
22established norm is based.
23    "Daily wage" and "hourly wage" mean, respectively, the
24normal, regular, or basic straight time rate of compensation or
25wage appropriated and payable for a normal and regular day's
26work, or hour's work, in the employee's position in the

 

 

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1service.
2    Any time worked in excess of the norm (or the increased or
3decreased norm, whichever is applicable) that is compensated
4for at overtime, premium, or other than regular or basic
5straight time rates shall not be considered as time worked, and
6the compensation for that work shall not be considered as
7salary or wage. Such time and compensation shall in every case
8and for all purposes be considered overtime and shall be
9excluded for all purposes under this Article. However, the
10straight time portion of compensation or wage, for time worked
11on holidays that fall within an employee's established norm,
12shall be included for all purposes under this Article.
13    (c) For minimum annuity purposes under Section 11-134,
14where a salary rate change occurs during the year, it shall be
15considered that the annual salary for that year is (1) the
16annual equivalent of the monthly, weekly, daily, or hourly
17salary or wage rate that was applicable for the greater number
18of months, weeks, days, or hours (whichever is applicable) in
19the year under consideration, or (2) the annual equivalent of
20the average salary or wage rate in effect for the employee
21during the year, whichever is greater. The average salary or
22wage rate shall be calculated by multiplying each salary or
23wage rate in effect for the employee during the year by the
24number of months, weeks, days, or hours (whichever is
25applicable) during which that rate was in effect, and dividing
26the sum of the resulting products by the total number of

 

 

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1months, weeks, days, or hours (whichever is applicable) worked
2by the employee during the year.
3    (d) The changes to subsection (c) made by this amendatory
4Act of 1997 apply to persons withdrawing from service on or
5after July 1, 1990 and for each such person are intended to be
6retroactive to the date upon which the affected annuity began.
7The Fund shall recompute the affected annuity and shall pay the
8additional amount due for the period before the increase
9resulting from this amendatory Act in a lump sum, without
10interest.
11    (e) This Article shall not be construed to authorize a
12salary paid by an entity other than an employer, as defined in
13Section 11-107, to be used to calculate the highest average
14annual salary of a participant. This subsection (e) is a
15declaration of existing law and shall not be construed as a new
16enactment.
17(Source: P.A. 90-31, eff. 6-27-97.)
 
18    (40 ILCS 5/15-107)  (from Ch. 108 1/2, par. 15-107)
19    Sec. 15-107. Employee.
20    (a) "Employee" means any member of the educational,
21administrative, secretarial, clerical, mechanical, labor or
22other staff of an employer whose employment is permanent and
23continuous or who is employed in a position in which services
24are expected to be rendered on a continuous basis for at least
254 months or one academic term, whichever is less, who (A)

 

 

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1receives payment for personal services on a warrant issued
2pursuant to a payroll voucher certified by an employer and
3drawn by the State Comptroller upon the State Treasurer or by
4an employer upon trust, federal or other funds, or (B) is on a
5leave of absence without pay. Employment which is irregular,
6intermittent or temporary shall not be considered continuous
7for purposes of this paragraph.
8    However, a person is not an "employee" if he or she:
9        (1) is a student enrolled in and regularly attending
10    classes in a college or university which is an employer,
11    and is employed on a temporary basis at less than full
12    time;
13        (2) is currently receiving a retirement annuity or a
14    disability retirement annuity under Section 15-153.2 from
15    this System;
16        (3) is on a military leave of absence;
17        (4) is eligible to participate in the Federal Civil
18    Service Retirement System and is currently making
19    contributions to that system based upon earnings paid by an
20    employer;
21        (5) is on leave of absence without pay for more than 60
22    days immediately following termination of disability
23    benefits under this Article;
24        (6) is hired after June 30, 1979 as a public service
25    employment program participant under the Federal
26    Comprehensive Employment and Training Act and receives

 

 

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1    earnings in whole or in part from funds provided under that
2    Act; or
3        (7) is employed on or after July 1, 1991 to perform
4    services that are excluded by subdivision (a)(7)(f) or
5    (a)(19) of Section 210 of the federal Social Security Act
6    from the definition of employment given in that Section (42
7    U.S.C. 410).
8    (b) Any employer may, by filing a written notice with the
9board, exclude from the definition of "employee" all persons
10employed pursuant to a federally funded contract entered into
11after July 1, 1982 with a federal military department in a
12program providing training in military courses to federal
13military personnel on a military site owned by the United
14States Government, if this exclusion is not prohibited by the
15federally funded contract or federal laws or rules governing
16the administration of the contract.
17    (c) Any person appointed by the Governor under the Civil
18Administrative Code of the State is an employee, if he or she
19is a participant in this system on the effective date of the
20appointment.
21    (d) A participant on lay-off status under civil service
22rules is considered an employee for not more than 120 days from
23the date of the lay-off.
24    (e) A participant is considered an employee during (1) the
25first 60 days of disability leave, (2) the period, not to
26exceed one year, in which his or her eligibility for disability

 

 

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1benefits is being considered by the board or reviewed by the
2courts, and (3) the period he or she receives disability
3benefits under the provisions of Section 15-152, workers'
4compensation or occupational disease benefits, or disability
5income under an insurance contract financed wholly or partially
6by the employer.
7    (f) Absences without pay, other than formal leaves of
8absence, of less than 30 calendar days, are not considered as
9an interruption of a person's status as an employee. If such
10absences during any period of 12 months exceed 30 work days,
11the employee status of the person is considered as interrupted
12as of the 31st work day.
13    (g) A staff member whose employment contract requires
14services during an academic term is to be considered an
15employee during the summer and other vacation periods, unless
16he or she declines an employment contract for the succeeding
17academic term or his or her employment status is otherwise
18terminated, and he or she receives no earnings during these
19periods.
20    (h) An individual who was a participating employee employed
21in the fire department of the University of Illinois's
22Champaign-Urbana campus immediately prior to the elimination
23of that fire department and who immediately after the
24elimination of that fire department became employed by the fire
25department of the City of Urbana or the City of Champaign shall
26continue to be considered as an employee for purposes of this

 

 

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1Article for so long as the individual remains employed as a
2firefighter by the City of Urbana or the City of Champaign. The
3individual shall cease to be considered an employee under this
4subsection (h) upon the first termination of the individual's
5employment as a firefighter by the City of Urbana or the City
6of Champaign.
7    (i) An individual who is employed on a full-time basis as
8an officer or employee of a statewide teacher organization that
9serves System participants or an officer of a national teacher
10organization that serves System participants may participate
11in the System and shall be deemed an employee, provided that
12(1) the individual has previously earned creditable service
13under this Article, (2) the individual files with the System an
14irrevocable election to become a participant before the
15effective date of this amendatory Act of the 97th General
16Assembly, and (3) the individual does not receive credit for
17that employment under any other Article of this Code, and (4)
18the individual first became a full-time employee of the teacher
19organization and becomes a participant before the effective
20date of this amendatory Act of the 97th General Assembly. An
21employee under this subsection (i) is responsible for paying to
22the System both (A) employee contributions based on the actual
23compensation received for service with the teacher
24organization and (B) employer contributions equal to the normal
25costs (as defined in Section 15-155) resulting from that
26service; all or any part of these contributions may be paid on

 

 

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1the employee's behalf or picked up for tax purposes (if
2authorized under federal law) by the teacher organization.
3    A person who is an employee as defined in this subsection
4(i) may establish service credit for similar employment prior
5to becoming an employee under this subsection by paying to the
6System for that employment the contributions specified in this
7subsection, plus interest at the effective rate from the date
8of service to the date of payment. However, credit shall not be
9granted under this subsection for any such prior employment for
10which the applicant received credit under any other provision
11of this Code, or during which the applicant was on a leave of
12absence under Section 15-113.2.
13    (j) A person employed by the State Board of Higher
14Education in a position with the Illinois Century Network as of
15June 30, 2004 shall be considered to be an employee for so long
16as he or she remains continuously employed after that date by
17the Department of Central Management Services in a position
18with the Illinois Century Network, the Bureau of Communication
19and Computer Services, or, if applicable, any successor bureau
20and meets the requirements of subsection (a).
21(Source: P.A. 95-369, eff. 8-23-07.)
 
22    (40 ILCS 5/16-106)  (from Ch. 108 1/2, par. 16-106)
23    Sec. 16-106. Teacher. "Teacher": The following
24individuals, provided that, for employment prior to July 1,
251990, they are employed on a full-time basis, or if not

 

 

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1full-time, on a permanent and continuous basis in a position in
2which services are expected to be rendered for at least one
3school term:
4        (1) Any educational, administrative, professional or
5    other staff employed in the public common schools included
6    within this system in a position requiring certification
7    under the law governing the certification of teachers;
8        (2) Any educational, administrative, professional or
9    other staff employed in any facility of the Department of
10    Children and Family Services or the Department of Human
11    Services, in a position requiring certification under the
12    law governing the certification of teachers, and any person
13    who (i) works in such a position for the Department of
14    Corrections, (ii) was a member of this System on May 31,
15    1987, and (iii) did not elect to become a member of the
16    State Employees' Retirement System pursuant to Section
17    14-108.2 of this Code; except that "teacher" does not
18    include any person who (A) becomes a security employee of
19    the Department of Human Services, as defined in Section
20    14-110, after June 28, 2001 (the effective date of Public
21    Act 92-14), or (B) becomes a member of the State Employees'
22    Retirement System pursuant to Section 14-108.2c of this
23    Code;
24        (3) Any regional superintendent of schools, assistant
25    regional superintendent of schools, State Superintendent
26    of Education; any person employed by the State Board of

 

 

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1    Education as an executive; any executive of the boards
2    engaged in the service of public common school education in
3    school districts covered under this system of which the
4    State Superintendent of Education is an ex-officio member;
5        (4) Any employee of a school board association
6    operating in compliance with Article 23 of the School Code
7    who is certificated under the law governing the
8    certification of teachers;
9        (5) Any person employed by the retirement system who:
10            (i) was an employee of and a participant in the
11        system on August 17, 2001 (the effective date of Public
12        Act 92-416), or
13            (ii) becomes an employee of the system on or after
14        August 17, 2001;
15        (6) Any educational, administrative, professional or
16    other staff employed by and under the supervision and
17    control of a regional superintendent of schools, provided
18    such employment position requires the person to be
19    certificated under the law governing the certification of
20    teachers and is in an educational program serving 2 or more
21    districts in accordance with a joint agreement authorized
22    by the School Code or by federal legislation;
23        (7) Any educational, administrative, professional or
24    other staff employed in an educational program serving 2 or
25    more school districts in accordance with a joint agreement
26    authorized by the School Code or by federal legislation and

 

 

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1    in a position requiring certification under the laws
2    governing the certification of teachers;
3        (8) Any officer or employee of a statewide teacher
4    organization or officer of a national teacher organization
5    who is certified under the law governing certification of
6    teachers, provided: (i) the individual had previously
7    established creditable service under this Article, (ii)
8    the individual files with the system an irrevocable
9    election to become a member before the effective date of
10    this amendatory Act of the 97th General Assembly, and (iii)
11    the individual does not receive credit for such service
12    under any other Article of this Code, and (iv) the
13    individual first became an officer or employee of the
14    teacher organization and becomes a member before the
15    effective date of this amendatory Act of the 97th General
16    Assembly;
17        (9) Any educational, administrative, professional, or
18    other staff employed in a charter school operating in
19    compliance with the Charter Schools Law who is certificated
20    under the law governing the certification of teachers.
21        (10) Any person employed, on the effective date of this
22    amendatory Act of the 94th General Assembly, by the
23    Macon-Piatt Regional Office of Education in a
24    birth-through-age-three pilot program receiving funds
25    under Section 2-389 of the School Code who is required by
26    the Macon-Piatt Regional Office of Education to hold a

 

 

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1    teaching certificate, provided that the Macon-Piatt
2    Regional Office of Education makes an election, within 6
3    months after the effective date of this amendatory Act of
4    the 94th General Assembly, to have the person participate
5    in the system. Any service established prior to the
6    effective date of this amendatory Act of the 94th General
7    Assembly for service as an employee of the Macon-Piatt
8    Regional Office of Education in a birth-through-age-three
9    pilot program receiving funds under Section 2-389 of the
10    School Code shall be considered service as a teacher if
11    employee and employer contributions have been received by
12    the system and the system has not refunded those
13    contributions.
14    An annuitant receiving a retirement annuity under this
15Article or under Article 17 of this Code who is employed by a
16board of education or other employer as permitted under Section
1716-118 or 16-150.1 is not a "teacher" for purposes of this
18Article. A person who has received a single-sum retirement
19benefit under Section 16-136.4 of this Article is not a
20"teacher" for purposes of this Article.
21    A person who is a teacher as described in item (8) of this
22Section may establish service credit for similar employment
23prior to becoming certified as a teacher if he or she (i) is
24certified as a teacher on or before the effective date of this
25amendatory Act of the 94th General Assembly, (ii) applies in
26writing to the system within 6 months after the effective date

 

 

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1of this amendatory Act of the 94th General Assembly, and (iii)
2pays to the system contributions equal to the normal costs
3calculated from the date of first full-time employment as
4described in item (8) to the date of payment, compounded
5annually at the rate of 8.5% per year for periods before the
6effective date of this amendatory Act of the 94th General
7Assembly and for subsequent periods at a rate equal to the
8System's actuarially assumed rate of return on investments.
9However, credit shall not be granted under this paragraph for
10any such prior employment for which the applicant received
11credit under any other provision of this Code.
12(Source: P.A. 93-320, eff. 7-23-03; 94-1111, eff. 2-27-07.)
 
13    (40 ILCS 5/17-134)  (from Ch. 108 1/2, par. 17-134)
14    Sec. 17-134. Contributions for leaves of absence; military
15service; computing service. In computing service for pension
16purposes the following periods of service shall stand in lieu
17of a like number of years of teaching service upon payment
18therefor in the manner hereinafter provided: (a) time spent on
19a leave of absence granted by the employer; (b) service with
20teacher or labor organizations based upon special leaves of
21absence therefor granted by an Employer; (c) a maximum of 5
22years spent in the military service of the United States, of
23which up to 2 years may have been served outside the pension
24period; (d) unused sick days at termination of service to a
25maximum of 244 days; (e) time lost due to layoff and

 

 

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1curtailment of the school term from June 6 through June 21,
21976; and (f) time spent after June 30, 1982 as a member of the
3Board of Education, if required to resign from an
4administrative or teaching position in order to qualify as a
5member of the Board of Education.
6        (1) For time spent on or after September 6, 1948 on
7    sabbatical leaves of absence or sick leaves, for which
8    salaries are paid, an Employer shall make payroll
9    deductions at the applicable rates in effect during such
10    periods.
11        (2) For time spent on a leave of absence granted by the
12    employer for which no salaries are paid, teachers desiring
13    credit therefor shall pay the required contributions at the
14    rates in effect during such periods as though they were in
15    teaching service. If an Employer pays salary for vacations
16    which occur during a teacher's sick leave or maternity or
17    paternity leave without salary, vacation pay for which the
18    teacher would have qualified while in active service shall
19    be considered part of the teacher's total salary for
20    pension purposes. No more than 36 months of leave credit
21    may be allowed any person during the entire term of
22    service. Sabbatical leave credit shall be limited to the
23    time the person on leave without salary under an Employer's
24    rules is allowed to engage in an activity for which he
25    receives salary or compensation.
26        (3) For time spent prior to September 6, 1948, on

 

 

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1    sabbatical leaves of absence or sick leaves for which
2    salaries were paid, teachers desiring service credit
3    therefor shall pay the required contributions at the
4    maximum applicable rates in effect during such periods.
5        (4) For service with teacher or labor organizations
6    authorized by special leaves of absence, for which no
7    payroll deductions are made by an Employer, teachers
8    desiring service credit therefor shall contribute to the
9    Fund upon the basis of the actual salary received from such
10    organizations at the percentage rates in effect during such
11    periods for certified positions with such Employer. To the
12    extent the actual salary exceeds the regular salary, which
13    shall be defined as the salary rate, as calculated by the
14    Board, in effect for the teacher's regular position in
15    teaching service on September 1, 1983 or on the effective
16    date of the leave with the organization, whichever is
17    later, the organization shall pay to the Fund the
18    employer's normal cost as set by the Board on the
19    increment. Notwithstanding any other provision of this
20    subdivision (4), teachers are only eligible for credit for
21    service under this subdivision (4) if the special leave of
22    absence begins before the effective date of this amendatory
23    Act of the 97th General Assembly.
24        (5) For time spent in the military service, teachers
25    entitled to and desiring credit therefor shall contribute
26    the amount required for each year of service or fraction

 

 

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1    thereof at the rates in force (a) at the date of
2    appointment, or (b) on return to teaching service as a
3    regularly certified teacher, as the case may be; provided
4    such rates shall not be less than $450 per year of service.
5    These conditions shall apply unless an Employer elects to
6    and does pay into the Fund the amount which would have been
7    due from such person had he been employed as a teacher
8    during such time. In the case of credit for military
9    service not during the pension period, the teacher must
10    also pay to the Fund an amount determined by the Board to
11    be equal to the employer's normal cost of the benefits
12    accrued from such service, plus interest thereon at 5% per
13    year, compounded annually, from the date of appointment to
14    the date of payment.
15        The changes to this Section made by Public Act 87-795
16    shall apply not only to persons who on or after its
17    effective date are in service under the Fund, but also to
18    persons whose status as a teacher terminated prior to that
19    date, whether or not the person is an annuitant on that
20    date. In the case of an annuitant who applies for credit
21    allowable under this Section for a period of military
22    service that did not immediately follow employment, and who
23    has made the required contributions for such credit, the
24    annuity shall be recalculated to include the additional
25    service credit, with the increase taking effect on the date
26    the Fund received written notification of the annuitant's

 

 

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1    intent to purchase the credit, if payment of all the
2    required contributions is made within 60 days of such
3    notice, or else on the first annuity payment date following
4    the date of payment of the required contributions. In
5    calculating the automatic annual increase for an annuity
6    that has been recalculated under this Section, the increase
7    attributable to the additional service allowable under
8    this amendatory Act of 1991 shall be included in the
9    calculation of automatic annual increases accruing after
10    the effective date of the recalculation.
11        The total credit for military service shall not exceed
12    5 years, except that any teacher who on July 1, 1963, had
13    validated credit for more than 5 years of military service
14    shall be entitled to the total amount of such credit.
15        (6) A maximum of 244 unused sick days credited to his
16    account by an Employer on the date of termination of
17    employment. Members, upon verification of unused sick
18    days, may add this service time to total creditable
19    service.
20        (7) In all cases where time spent on leave is
21    creditable and no payroll deductions therefor are made by
22    an Employer, persons desiring service credit shall make the
23    required contributions directly to the Fund.
24        (8) For time lost without pay due to layoff and
25    curtailment of the school term from June 6 through June 21,
26    1976, as provided in item (e) of the first paragraph of

 

 

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1    this Section, persons who were contributors on the days
2    immediately preceding such layoff shall receive credit
3    upon paying to the Fund a contribution based on the rates
4    of compensation and employee contributions in effect at the
5    time of such layoff, together with an additional amount
6    equal to 12.2% of the compensation computed for such period
7    of layoff, plus interest on the entire amount at 5% per
8    annum from January 1, 1978 to the date of payment. If such
9    contribution is paid, salary for pension purposes for any
10    year in which such a layoff occurred shall include the
11    compensation recognized for purposes of computing that
12    contribution.
13        (9) For time spent after June 30, 1982, as a
14    nonsalaried member of the Board of Education, if required
15    to resign from an administrative or teaching position in
16    order to qualify as a member of the Board of Education, an
17    administrator or teacher desiring credit therefor shall
18    pay the required contributions at the rates and salaries in
19    effect during such periods as though the member were in
20    service.
21    Effective September 1, 1974, the interest charged for
22validation of service described in paragraphs (2) through (5)
23of this Section shall be compounded annually at a rate of 5%
24commencing one year after the termination of the leave or
25return to service.
26(Source: P.A. 92-599, eff. 6-28-02.)
 

 

 

HB3813 Enrolled- 77 -LRB097 13613 AMC 58149 b

1    Section 97. Retroactive repeal. This amendatory Act of the
297th General Assembly hereby repeals and declares void ab
3initio the last paragraph of Section 16-106 of the Illinois
4Pension Code as contained in Public Act 94-1111 as that
5paragraph furnishes no vested rights because it violates
6multiple provisions of the 1970 Illinois Constitution,
7including, but not limited to, Article VIII, Section 1. Upon
8receipt of an application within 6 months after the effective
9date of this amendatory Act of the 97th General Assembly, the
10System shall immediately refund any contributions made by or on
11behalf of a person to receive service credit pursuant to the
12text set forth in Public Act 94-1111, as well as any amount
13determined by the Board to be equal to the investment earned by
14the System on those contributions since their receipt.
 
15    Section 98. Severability. The provisions of this Act are
16severable under Section 1.31 of the Statute on Statutes.
 
17    Section 99. Effective date. This Act takes effect upon
18becoming law.