Illinois Compiled Statutes
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40 ILCS 5/15-134.5
(40 ILCS 5/15-134.5)
Retirement program elections.
(a) All participating employees are participants under the traditional
benefit package prior to January 1, 1998.
Effective as of the date that an employer elects, as described in Section
15-158.2, to offer to its employees the portable benefit package and the
self-managed plan as alternatives to the traditional benefit package, each of
that employer's eligible employees (as defined in subsection (b)) shall be
given the choice to elect which retirement program he or she wishes to
participate in with respect to all periods of covered employment occurring on
and after the effective date of the employee's election. The retirement
program election made by an eligible employee must be made in writing, in the
manner prescribed by the System, and within the time period described in
subsection (d) or (d-1).
The employee election authorized by this Section is a one-time, irrevocable
election. If an employee terminates employment after making the election
provided under this subsection (a), then upon his or her subsequent
re-employment with an employer the original election shall automatically apply
to him or her, provided that the employer is then a participating employer as
described in Section 15-158.2.
An eligible employee who fails to make this election shall, by default,
participate in the traditional benefit package.
(b) "Eligible employee" means an employee (as defined in Section
15-107) who is either a currently eligible employee or a newly eligible
employee. For purposes of this Section, a "currently eligible employee"
is an employee who is employed by an employer on the effective date on which
the employer offers to its employees the portable benefit package and the
self-managed plan as alternatives to the traditional benefit package. A "newly
eligible employee" is an employee who first becomes employed by an employer
after the effective date on which the employer offers its employees the
portable benefit package and the self-managed plan as alternatives to the
traditional benefit package.
A newly eligible employee participates in the traditional benefit package
until he or she makes an election to participate in the portable benefit
package or the self-managed plan. If an employee does not elect to participate
in the portable benefit package or the self-managed plan, he or she shall
continue to participate in the
traditional benefit package by default.
(c) An eligible employee who at the time he or she is first eligible to
make the election described in subsection (a) does not have sufficient age and
service to qualify for a retirement annuity under Section 15-135 may elect to
participate in the traditional benefit package, the portable benefit package,
or the self-managed plan. An eligible employee who has sufficient age and
service to qualify for a retirement annuity under Section 15-135 at the time he
or she is first eligible to make the election described in subsection (a) may
elect to participate in the traditional benefit package or the portable benefit
package, but may not elect to participate in the self-managed plan.
(d) A currently eligible employee must make this election within one year
after the effective date of the employer's adoption of the self-managed plan.
A newly eligible employee must make this election within
6 months after the date on which the System receives the report of status
certification from the employer.
If an employee elects to participate in the self-managed plan, no employer
contributions shall be remitted to the self-managed plan when the employee's
account balance transfer is made. Employer contributions to the self-managed
plan shall commence as of the first pay period that begins after the System
receives the employee's election.
(d-1) A newly eligible employee who, prior to the effective date of this
amendatory Act of the 91st General Assembly, fails to make the election within
the period provided under subsection (d) and participates by default in the
traditional benefit package may make a late election to participate in the
portable benefit package or the self-managed plan instead of the traditional
benefit package at any time within 6 months after the effective date of this
amendatory Act of the 91st General Assembly.
(e) If a currently eligible employee elects the portable benefit
election shall not become effective until the one-year anniversary of the date
on which the election is filed with the System, provided the employee remains
continuously employed by the employer throughout the one-year waiting period,
and any benefits payable to or on account of the employee before such one-year
waiting period has ended shall not be determined under the provisions
applicable to the portable benefit package but shall instead be determined in
accordance with the traditional benefit package. If a currently
eligible employee who
has elected the portable benefit package terminates employment covered by the
System before the one-year waiting period has ended, then no
benefits shall be determined under the portable benefit package provisions
while he or she is inactive in the System and upon re-employment with an
employer covered by the System he or she shall begin a new one-year waiting
period before the provisions of the portable benefit
package become effective.
(f) An eligible employee shall be provided with written information prepared
or prescribed by the System which describes the employee's retirement program
choices. The eligible employee shall be offered an opportunity to
receive counseling from the System prior to making his or her election. This
counseling may consist of videotaped materials, group presentations, individual
consultation with an employee or authorized representative of the System in
person or by telephone or other electronic means, or any combination of these
(Source: P.A. 90-766, eff. 8-14-98; 91-887, eff. 7-6-00.)