Illinois General Assembly - Full Text of HB4622
Illinois General Assembly

Previous General Assemblies

Full Text of HB4622  97th General Assembly

HB4622ham001 97TH GENERAL ASSEMBLY

Rep. Elaine Nekritz

Filed: 2/21/2012

 

 


 

 


 
09700HB4622ham001LRB097 16031 EFG 66269 a

1
AMENDMENT TO HOUSE BILL 4622

2    AMENDMENT NO. ______. Amend House Bill 4622 on page 1, in
3line 5, by changing "and 7-220" to "7-220, 15-113, 15-135,
415-136, 15-136.4, 15-139, and 15-153.2"; and
 
5on page 19, below line 12, by inserting the following:
 
6    "(40 ILCS 5/15-113)  (from Ch. 108 1/2, par. 15-113)
7    Sec. 15-113. Service. "Service": The periods defined in
8Sections 15-113.1 through 15-113.9 and Section 15-113.11.
9(Source: P.A. 84-1472.)
 
10    (40 ILCS 5/15-135)  (from Ch. 108 1/2, par. 15-135)
11    Sec. 15-135. Retirement annuities - Conditions.
12    (a) A participant who retires in one of the following
13specified years with the specified amount of service is
14entitled to a retirement annuity at any age under the
15retirement program applicable to the participant:

 

 

09700HB4622ham001- 2 -LRB097 16031 EFG 66269 a

1        35 years if retirement is in 1997 or before;
2        34 years if retirement is in 1998;
3        33 years if retirement is in 1999;
4        32 years if retirement is in 2000;
5        31 years if retirement is in 2001;
6        30 years if retirement is in 2002 or later.
7    A participant with 8 or more years of service after
8September 1, 1941, is entitled to a retirement annuity on or
9after attainment of age 55.
10    A participant with at least 5 but less than 8 years of
11service after September 1, 1941, is entitled to a retirement
12annuity on or after attainment of age 62.
13    A participant who has at least 25 years of service in this
14system as a police officer or firefighter is entitled to a
15retirement annuity on or after the attainment of age 50, if
16Rule 4 of Section 15-136 is applicable to the participant.
17    (b) The annuity payment period shall begin on the date
18specified by the participant or the recipient of a disability
19retirement annuity submitting a written application, which
20date shall not be prior to termination of employment or more
21than one year before the application is received by the board;
22however, if the participant is not an employee of an employer
23participating in this System or in a participating system as
24defined in Article 20 of this Code on April 1 of the calendar
25year next following the calendar year in which the participant
26attains age 70 1/2, the annuity payment period shall begin on

 

 

09700HB4622ham001- 3 -LRB097 16031 EFG 66269 a

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

 

 

09700HB4622ham001- 4 -LRB097 16031 EFG 66269 a

1retirement annuity begins:
2        (i) the normal annuity which can be provided on an
3    actuarially equivalent basis, by the accumulated normal
4    contributions as of the date the annuity begins;
5        (ii) an annuity from employer contributions of an
6    amount equal to that which can be provided on an
7    actuarially equivalent basis from the accumulated normal
8    contributions made by the participant under Section
9    15-113.6 and Section 15-113.7 plus 1.4 times all other
10    accumulated normal contributions made by the participant;
11    and
12        (iii) the annuity that can be provided on an
13    actuarially equivalent basis from the entire contribution
14    made by the participant under Section 15-113.3.
15    With respect to a police officer or firefighter who retires
16on or after August 14, 1998, the accumulated normal
17contributions taken into account under clauses (i) and (ii) of
18this Rule 2 shall include the additional normal contributions
19made by the police officer or firefighter under Section
2015-157(a).
21    The amount of a retirement annuity calculated under this
22Rule 2 shall be computed solely on the basis of the
23participant's accumulated normal contributions, as specified
24in this Rule and defined in Section 15-116. Neither an employee
25or employer contribution for early retirement under Section
2615-136.2 nor any other employer contribution shall be used in

 

 

09700HB4622ham001- 5 -LRB097 16031 EFG 66269 a

1the calculation of the amount of a retirement annuity under
2this Rule 2.
3    This amendatory Act of the 91st General Assembly is a
4clarification of existing law and applies to every participant
5and annuitant without regard to whether status as an employee
6terminates before the effective date of this amendatory Act.
7    This Rule 2 does not apply to a person who first becomes an
8employee under this Article on or after July 1, 2005.
9    Rule 3: The retirement annuity of a participant who is
10employed at least one-half time during the period on which his
11or her final rate of earnings is based, shall be equal to the
12participant's years of service not to exceed 30, multiplied by
13(1) $96 if the participant's final rate of earnings is less
14than $3,500, (2) $108 if the final rate of earnings is at least
15$3,500 but less than $4,500, (3) $120 if the final rate of
16earnings is at least $4,500 but less than $5,500, (4) $132 if
17the final rate of earnings is at least $5,500 but less than
18$6,500, (5) $144 if the final rate of earnings is at least
19$6,500 but less than $7,500, (6) $156 if the final rate of
20earnings is at least $7,500 but less than $8,500, (7) $168 if
21the final rate of earnings is at least $8,500 but less than
22$9,500, and (8) $180 if the final rate of earnings is $9,500 or
23more, except that the annuity for those persons having made an
24election under Section 15-154(a-1) shall be calculated and
25payable under the portable retirement benefit program pursuant
26to the provisions of Section 15-136.4.

 

 

09700HB4622ham001- 6 -LRB097 16031 EFG 66269 a

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

 

 

09700HB4622ham001- 7 -LRB097 16031 EFG 66269 a

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

 

 

09700HB4622ham001- 8 -LRB097 16031 EFG 66269 a

1    In no event shall a retirement annuity under this Rule 5 be
2lower than the amount obtained by adding (1) the monthly amount
3obtained by dividing the combined employee and employer
4contributions made under Section 15-136.2 by the System's
5annuity factor for the age of the participant at the beginning
6of the annuity payment period and (2) the amount equal to the
7participant's annuity if calculated under Rule 1, reduced under
8Section 15-136(b) as if no contributions had been made under
9Section 15-136.2.
10    With respect to a participant who is qualified for a
11retirement annuity under this Rule 5 whose retirement annuity
12began before the effective date of this amendatory Act of the
1391st General Assembly, and for whom an employee contribution
14was made under Section 15-136.2, the System shall recalculate
15the retirement annuity under this Rule 5 and shall pay any
16additional amounts due in the manner provided in Section
1715-186.1 for benefits mistakenly set too low.
18    The amount of a retirement annuity calculated under this
19Rule 5 shall be computed solely on the basis of those
20contributions specifically set forth in this Rule 5. Except as
21provided in clause (iii) of this Rule 5, neither an employee
22nor employer contribution for early retirement under Section
2315-136.2, nor any other employer contribution, shall be used in
24the calculation of the amount of a retirement annuity under
25this Rule 5.
26    The General Assembly has adopted the changes set forth in

 

 

09700HB4622ham001- 9 -LRB097 16031 EFG 66269 a

1Section 25 of this amendatory Act of the 91st General Assembly
2in recognition that the decision of the Appellate Court for the
3Fourth District in Mattis v. State Universities Retirement
4System et al. might be deemed to give some right to the
5plaintiff in that case. The changes made by Section 25 of this
6amendatory Act of the 91st General Assembly are a legislative
7implementation of the decision of the Appellate Court for the
8Fourth District in Mattis v. State Universities Retirement
9System et al. with respect to that plaintiff.
10    The changes made by Section 25 of this amendatory Act of
11the 91st General Assembly apply without regard to whether the
12person is in service as an employee on or after its effective
13date.
14    (b) The retirement annuity provided under Rules 1 and 3
15above shall be reduced by 1/2 of 1% for each month the
16participant is under age 60 at the time of retirement. However,
17this reduction shall not apply in the following cases:
18        (1) For a disabled participant whose disability
19    benefits have been discontinued because he or she has
20    exhausted eligibility for disability benefits under clause
21    (6) of Section 15-152;
22        (2) For a participant who has at least the number of
23    years of service required to retire at any age under
24    subsection (a) of Section 15-135; or
25        (3) For that portion of a retirement annuity which has
26    been provided on account of service of the participant

 

 

09700HB4622ham001- 10 -LRB097 16031 EFG 66269 a

1    during periods when he or she performed the duties of a
2    police officer or firefighter, if these duties were
3    performed for at least 5 years immediately preceding the
4    date the retirement annuity is to begin.
5    (c) The maximum retirement annuity provided under Rules 1,
62, 4, and 5 shall be the lesser of (1) the annual limit of
7benefits as specified in Section 415 of the Internal Revenue
8Code of 1986, as such Section may be amended from time to time
9and as such benefit limits shall be adjusted by the
10Commissioner of Internal Revenue, and (2) 80% of final rate of
11earnings.
12    (d) An annuitant whose status as an employee terminates
13after August 14, 1969 shall receive automatic increases in his
14or her retirement annuity as follows:
15    Effective January 1 immediately following the date the
16retirement annuity begins, the annuitant shall receive an
17increase in his or her monthly retirement annuity of 0.125% of
18the monthly retirement annuity provided under Rule 1, Rule 2,
19Rule 3, Rule 4, or Rule 5, contained in this Section,
20multiplied by the number of full months which elapsed from the
21date the retirement annuity payments began to January 1, 1972,
22plus 0.1667% of such annuity, multiplied by the number of full
23months which elapsed from January 1, 1972, or the date the
24retirement annuity payments began, whichever is later, to
25January 1, 1978, plus 0.25% of such annuity multiplied by the
26number of full months which elapsed from January 1, 1978, or

 

 

09700HB4622ham001- 11 -LRB097 16031 EFG 66269 a

1the date the retirement annuity payments began, whichever is
2later, to the effective date of the increase.
3    The annuitant shall receive an increase in his or her
4monthly retirement annuity on each January 1 thereafter during
5the annuitant's life of 3% of the monthly annuity provided
6under Rule 1, Rule 2, Rule 3, Rule 4, or Rule 5 contained in
7this Section. The change made under this subsection by P.A.
881-970 is effective January 1, 1980 and applies to each
9annuitant whose status as an employee terminates before or
10after that date.
11    Beginning January 1, 1990, all automatic annual increases
12payable under this Section shall be calculated as a percentage
13of the total annuity payable at the time of the increase,
14including all increases previously granted under this Article.
15    The change made in this subsection by P.A. 85-1008 is
16effective January 26, 1988, and is applicable without regard to
17whether status as an employee terminated before that date.
18    (e) If, on January 1, 1987, or the date the retirement
19annuity payment period begins, whichever is later, the sum of
20the retirement annuity provided under Rule 1 or Rule 2 of this
21Section and the automatic annual increases provided under the
22preceding subsection or Section 15-136.1, amounts to less than
23the retirement annuity which would be provided by Rule 3, the
24retirement annuity shall be increased as of January 1, 1987, or
25the date the retirement annuity payment period begins,
26whichever is later, to the amount which would be provided by

 

 

09700HB4622ham001- 12 -LRB097 16031 EFG 66269 a

1Rule 3 of this Section. Such increased amount shall be
2considered as the retirement annuity in determining benefits
3provided under other Sections of this Article. This paragraph
4applies without regard to whether status as an employee
5terminated before the effective date of this amendatory Act of
61987, provided that the annuitant was employed at least
7one-half time during the period on which the final rate of
8earnings was based.
9    (f) A participant is entitled to such additional annuity as
10may be provided on an actuarially equivalent basis, by any
11accumulated additional contributions to his or her credit.
12However, the additional contributions made by the participant
13toward the automatic increases in annuity provided under this
14Section shall not be taken into account in determining the
15amount of such additional annuity.
16    (g) If, (1) by law, a function of a governmental unit, as
17defined by Section 20-107 of this Code, is transferred in whole
18or in part to an employer, and (2) a participant transfers
19employment from such governmental unit to such employer within
206 months after the transfer of the function, and (3) the sum of
21(A) the annuity payable to the participant under Rule 1, 2, or
223 of this Section (B) all proportional annuities payable to the
23participant by all other retirement systems covered by Article
2420, and (C) the initial primary insurance amount to which the
25participant is entitled under the Social Security Act, is less
26than the retirement annuity which would have been payable if

 

 

09700HB4622ham001- 13 -LRB097 16031 EFG 66269 a

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

 

 

09700HB4622ham001- 14 -LRB097 16031 EFG 66269 a

115-134.5. For purposes of this Section, the term "eligible
2spouse" means the husband or wife of a participant to whom the
3participant is married on the date the participant's annuity
4payment period begins, provided however, that if the
5participant should die prior to the commencement of retirement
6annuity benefits, then "eligible spouse" means the husband or
7wife, if any, to whom the participant was married throughout
8the one-year period preceding the date of his or her death.
9    (b) This subsection (b) describes the normal form of
10annuity payable to a participant subject to this Section
1115-136.4. If the participant is unmarried on the date his or
12her annuity payment period begins, then the annuity payments
13shall be made in the form of a single-life annuity as described
14in Section 15-118. If the participant is married on the date
15his or her annuity payments commence, then the annuity payments
16shall be paid in the form of a qualified joint and survivor
17annuity that is the actuarial equivalent of the single-life
18annuity. Under the "qualified joint and survivor annuity", a
19reduced amount shall be paid to the participant for his or her
20lifetime and his or her eligible spouse, if surviving at the
21participant's death, shall be entitled to receive thereafter a
22lifetime survivorship annuity in a monthly amount equal to 50%
23of the reduced monthly amount that was payable to the
24participant. The last payment of a qualified joint and survivor
25annuity shall be made as of the first day of the month in which
26the death of the survivor occurs.

 

 

09700HB4622ham001- 15 -LRB097 16031 EFG 66269 a

1    (c) Instead of the normal form of annuity that would be
2paid under subsection (b), a participant may elect in writing
3within the 180-day 90-day period prior to the date his or her
4annuity payments commence to waive the normal form of annuity
5payment and receive an optional form of payment as described in
6subsection (h). If the participant is married and elects an
7optional form of payment under subsection (h) other than a
8joint and survivor annuity with the eligible spouse designated
9as the contingent annuitant, then such election shall require
10the consent of his or her eligible spouse in the manner
11described in subsection (d). At any time during the 180-day
1290-day period preceding the date the participant's payment
13period begins, the participant may revoke the optional form of
14payment elected under this subsection (c) and reinstate
15coverage under the qualified joint and survivor annuity without
16the spouse's consent, but an election to revoke the optional
17form elected and elect a new optional form of payment or
18designate a different contingent annuitant shall not be
19effective without the eligible spouse's consent.
20    (d) The eligible spouse's consent to any election made
21pursuant to this Section that requires the eligible spouse's
22consent shall be in writing and shall acknowledge the effect of
23the consent. In addition, the eligible spouse's signature on
24the written consent must be witnessed by a notary public. The
25eligible spouse's consent need not be obtained if the system is
26satisfied that there is no eligible spouse, that the eligible

 

 

09700HB4622ham001- 16 -LRB097 16031 EFG 66269 a

1spouse cannot be located, or because of any other relevant
2circumstances. An eligible spouse's consent under this Section
3is valid only with respect to the specified optional form of
4payment and, if applicable, contingent annuitant designated by
5the participant. If the optional form of payment or the
6contingent annuitant is subsequently changed (other than by a
7revocation of the optional form of payment and reinstatement of
8the qualified joint and survivor annuity), a new consent by the
9eligible spouse is required. The eligible spouse's consent to
10an election made by a participant pursuant to this Section,
11once made, may not be revoked by the eligible spouse.
12    (e) Within a reasonable period of time preceding the date a
13participant's annuity commences, a participant shall be
14supplied with a written explanation of (1) the terms and
15conditions of the normal form single-life annuity and qualified
16joint and survivor annuity, (2) the participant's right to
17elect a single-life annuity or an optional form of payment
18under subsection (h) subject to his or her eligible spouse's
19consent, if applicable, and (3) the participant's right to
20reinstate coverage under the qualified joint and survivor
21annuity prior to his or her annuity commencement date by
22revoking an election of an optional form of payment under
23subsection (h).
24    (f) If a married participant with at least 1.5 years of
25service dies prior to commencing retirement annuity payments
26and prior to taking a refund under Section 15-154, his or her

 

 

09700HB4622ham001- 17 -LRB097 16031 EFG 66269 a

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

 

 

09700HB4622ham001- 18 -LRB097 16031 EFG 66269 a

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

 

 

09700HB4622ham001- 19 -LRB097 16031 EFG 66269 a

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

 

 

09700HB4622ham001- 20 -LRB097 16031 EFG 66269 a

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

 

 

09700HB4622ham001- 21 -LRB097 16031 EFG 66269 a

1portion of the monthly retirement annuity provided by employer
2contributions shall not be payable.
3    If an annuitant retires at age 60 or over and receives or
4becomes entitled to receive during any academic year
5compensation in excess of the difference between his or her
6highest annual earnings prior to retirement and his or her
7annual retirement annuity computed under Rule 1, Rule 2, Rule
83, Rule 4, or Rule 5 of Section 15-136, or under Section
915-136.4, for services performed after the date of retirement
10for any employer under this System, that portion of the monthly
11retirement annuity provided by employer contributions shall be
12reduced by an amount equal to the compensation that exceeds
13such difference.
14    However, any remuneration received for serving as a member
15of the Illinois Educational Labor Relations Board shall be
16excluded from "compensation" for the purposes of this
17subsection (b), and serving as a member of the Illinois
18Educational Labor Relations Board shall not be deemed to be a
19return to employment for the purposes of this Section. This
20provision applies without regard to whether service was
21terminated prior to the effective date of this amendatory Act
22of 1991.
23    (c) If an employer certifies that an annuitant has been
24reemployed on a permanent and continuous basis or in a position
25in which the annuitant is expected to serve for at least 9
26months, the annuitant shall resume his or her status as a

 

 

09700HB4622ham001- 22 -LRB097 16031 EFG 66269 a

1participating employee and shall be entitled to all rights
2applicable to participating employees upon filing with the
3board an election to forego all annuity payments during the
4period of reemployment. Upon subsequent retirement, the
5retirement annuity shall consist of the annuity which was
6terminated by the reemployment, plus the additional retirement
7annuity based upon service granted during the period of
8reemployment, but the combined retirement annuity shall not
9exceed the maximum annuity applicable on the date of the last
10retirement.
11    The total service and earnings credited before and after
12the initial date of retirement shall be considered in
13determining eligibility of the employee or the employee's
14beneficiary to benefits under this Article, and in calculating
15final rate of earnings.
16    In determining the death benefit payable to a beneficiary
17of an annuitant who again becomes a participating employee
18under this Section, accumulated normal and additional
19contributions shall be considered as the sum of the accumulated
20normal and additional contributions at the date of initial
21retirement and the accumulated normal and additional
22contributions credited after that date, less the sum of the
23annuity payments received by the annuitant.
24    The survivors insurance benefits provided under Section
2515-145 shall not be applicable to an annuitant who resumes his
26or her status as a participating employee, unless the

 

 

09700HB4622ham001- 23 -LRB097 16031 EFG 66269 a

1annuitant, at the time of initial retirement, has a survivors
2insurance beneficiary who could qualify for such benefits.
3    If the participant's annuitant's employment is terminated
4because of circumstances other than death before 9 months from
5the date of reemployment, the provisions of this Section
6regarding resumption of status as a participating employee
7shall not apply. The normal and survivors insurance
8contributions which are deducted during this period shall be
9refunded to the annuitant without interest, and subsequent
10benefits under this Article shall be the same as those which
11were applicable prior to the date the annuitant resumed
12employment.
13    The amendments made to this Section by this amendatory Act
14of the 91st General Assembly apply without regard to whether
15the annuitant was in service on or after the effective date of
16this amendatory Act.
17(Source: P.A. 91-887 (Sections 10 and 25), eff. 7-6-00; 92-16,
18eff. 6-28-01.)
 
19    (40 ILCS 5/15-153.2)  (from Ch. 108 1/2, par. 15-153.2)
20    Sec. 15-153.2. Disability retirement annuity. A
21participant whose disability benefits are discontinued under
22the provisions of clause (6) of Section 15-152 and who is not a
23participant in the optional retirement plan established under
24Section 15-158.2 is entitled to a disability retirement annuity
25of 35% of the basic compensation which was payable to the

 

 

09700HB4622ham001- 24 -LRB097 16031 EFG 66269 a

1participant at the time that disability began, provided that
2the board determines that the participant has a medically
3determinable physical or mental impairment that prevents him or
4her from engaging in any substantial gainful activity, and
5which can be expected to result in death or which has lasted or
6can be expected to last for a continuous period of not less
7than 12 months.
8    The board's determination of whether a participant is
9disabled shall be based upon:
10        (i) a written certificate from one or more licensed and
11    practicing physicians appointed by or acceptable to the
12    board, stating that the participant is unable to engage in
13    any substantial gainful activity; and
14        (ii) any other medical examinations, hospital records,
15    laboratory results, or other information necessary for
16    determining the employment capacity and condition of the
17    participant.
18    The terms "medically determinable physical or mental
19impairment" and "substantial gainful activity" shall have the
20meanings ascribed to them in the federal Social Security Act,
21as now or hereafter amended, and the regulations issued
22thereunder.
23    The disability retirement annuity payment period shall
24begin immediately following the expiration of the disability
25benefit payments under clause (6) of Section 15-152 and shall
26be discontinued for a recipient of a disability retirement

 

 

09700HB4622ham001- 25 -LRB097 16031 EFG 66269 a

1annuity when (1) the physical or mental impairment no longer
2prevents the participant from engaging in any substantial
3gainful activity, (2) the participant dies or (3) the
4participant elects to receive a retirement annuity under
5Sections 15-135 and 15-136. If a person's disability retirement
6annuity is discontinued under clause (1), all rights and
7credits accrued in the system on the date that the disability
8retirement annuity began shall be restored, and the disability
9retirement annuity paid shall be considered as disability
10payments under clause (6) of Section 15-152.
11(Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-511,
12eff. 8-22-97; 90-766, eff. 8-14-98.)".