(40 ILCS 5/16-165) (from Ch. 108 1/2, par. 16-165)
Sec. 16-165. Board; elected members; vacancies.
(a) In each odd-numbered year, if there are 2 teachers whose terms of office will expire in that year, there shall be elected 2 teachers who
shall hold office for a term of 4 years beginning July 15 next following their
election or, if there are 3 teachers whose terms of office will expire in that year, there shall be elected 3 teachers who shall hold office for a term of 4 years beginning July 15 next following their election, in the manner provided under this Section. An elected teacher
member of the board who ceases to be a teacher as defined in Section 16-106 may
continue to serve on the board for the remainder of the term to which he or she
was elected.
(b) One elected annuitant trustee shall first be elected in
1987, and in every fourth year thereafter, for a
term of 4 years beginning July 15 next following his or her election.
(c) The elected annuitant position created by this amendatory Act of
the 91st General Assembly shall be filled as soon as possible in the manner
provided for vacancies, for an initial term ending July 15, 2001. One
elected annuitant trustee shall be elected in 2001, and in every fourth year
thereafter, for a term of 4 years beginning July 15 next following his or her
election.
The elected teacher position created by this amendatory Act of the 101st General Assembly shall be for an initial 3-year term and shall be filled in the manner provided for vacancies; except that if the teacher candidate who receives the highest number of votes and the incumbent members not up for election belong to the same statewide teacher organization, then the teacher candidate who receives the highest number of votes and is not a member of that statewide teacher organization shall be declared elected. (d) Elections shall be held on May 1, unless May 1 falls on a Saturday
or Sunday, in which event the election shall be conducted on the
following Monday. Candidates shall be nominated by petitions in writing,
signed by not less than 500 teachers or annuitants, as the case may be, with
their addresses shown opposite their names. The petitions shall be filed with
the board's Secretary not less than 90 nor more than 120 days prior to May 1.
The Secretary shall determine their validity not less than 75 days before the
election.
(d-5) Beginning July 15, 2020, not more than 4 of the 5 teachers elected to the Board of Trustees may be active members of the same statewide teacher organization. For the purposes of this Section, "statewide teacher organization" means a teacher organization (1) in which membership is not restricted to persons living or teaching within a limited geographical area of this State and (2) that has among its membership at least 10,000 persons who participate in this System. Candidates for the teacher positions on the Board shall indicate, in their nomination petitions and campaign materials, which (if any) statewide teacher organizations they have belonged to during the 5 years preceding the election. (e) If, for either teacher or annuitant members, the number of qualified
nominees exceeds the number of available positions,
the system shall prepare an appropriate ballot with the names of the candidates
in alphabetical order and shall mail one copy thereof, at least 10 days prior
to the election day, to each teacher or annuitant of this system as of the
latest date practicable, at the latest known address, together with a return
envelope addressed to the board and also a smaller envelope marked "For Ballot
Only", and a slip for signature. Each voter, upon marking his ballot with a
cross mark in the square before the name of the person voted for, shall place
the ballot in the envelope marked "For Ballot Only", seal the envelope, write
on the slip provided therefor his signature and address, enclose both the slip
and sealed envelope containing the marked ballot in the return envelope
addressed to the board, and mail it. Whether a person is eligible to vote for
the teacher nominees or the annuitant nominees shall be
determined from system payroll records as of March 1.
Upon receipt of the return envelopes, the system shall open them and set
aside unopened the envelopes marked "For Ballot Only". On election day ballots
shall be publicly opened and counted by the trustees or canvassers appointed
therefor. Each vote cast for a candidate represents one vote only. No ballot
arriving after 10 o'clock a.m. on election day shall be counted. (e-3) The 2 teacher
candidates or 3 teacher candidates, whichever is applicable for that election, and the annuitant candidate receiving the highest number of votes
shall be declared elected; except that beginning with the election in 2021, if the teacher candidate who receives the highest number of votes and the incumbent members not up for election belong to the same statewide teacher organization, then the second teacher candidate to be declared elected shall be the candidate who is not a member of the same statewide teacher organization and receives the highest number of votes, unless there is no such candidate or at least one candidate declared elected in the same election is not a member of that statewide teacher organization. The board shall declare the results of the election, keep a
record thereof, and notify the candidates of the results thereof within 30 days
after the election.
(e-5) If, for either class of members, there are only as many
qualified nominees as there are positions available, the balloting as described
in this
Section shall not be conducted for those nominees,
and the board shall declare them duly elected.
(f) A vacancy occurring in the elective membership of
the board
shall be filled for the unexpired term by a person qualified
for the vacant position, selected by the remaining elected members of the
board, if there are no more than 6 months remaining on the
term. For a term with more than 6 months remaining, the Director of the
Teachers' Retirement System of the State of Illinois shall institute an
election in accordance with this Act to fill the unexpired term.
(Source: P.A. 101-610, eff. 1-1-20.)
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(40 ILCS 5/16-166) (from Ch. 108 1/2, par. 16-166)
Sec. 16-166.
Board - oath of office.
Each trustee, prior to assuming office, shall take and subscribe to an
oath that he or she will diligently and honestly administer the affairs of the
board, and that he or she will not knowingly violate or willingly permit to be
violated any of the provisions of law applicable to the retirement system.
The oath shall be certified by the officer before whom it is taken, and
immediately filed in the office of the Secretary of State.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-167) (from Ch. 108 1/2, par. 16-167)
Sec. 16-167.
Board - compensation and expenses.
The trustees shall serve without compensation, but shall be reimbursed for
all necessary expenses.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-168) (from Ch. 108 1/2, par. 16-168)
Sec. 16-168.
Board - meeting - rules - voting.
The board shall meet
regularly at least 4 times a year at such time as it may by by-laws provide, or
at the call of the president or of a majority of the members. The board
may adopt rules for the government of its meetings and for the
administration of the system. Each trustee is entitled to
1 vote. The votes of a majority of the members are necessary for a decision by
the trustees at any meeting of the board.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-169) (from Ch. 108 1/2, par. 16-169)
Sec. 16-169. Board - secretary and other employees. The board, by a majority vote of all its members, shall appoint a
secretary who shall not be a member of the board and who shall serve as
the chief executive officer responsible for the detailed administration
of the system.
The secretary and chief executive officer of the system, known as the Executive Director, holding that position on April 1, 2009 is terminated on July 1, 2009, by operation of law, and shall thereafter no longer hold those positions or any other employment position with the system. The board is directed to take whatever action is necessary to effectuate this termination. (Source: P.A. 96-6, eff. 4-3-09.)
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(40 ILCS 5/16-169.1)
Sec. 16-169.1. Testimony and the production of records. The secretary of
the Board shall have the power to issue subpoenas to compel the attendance of
witnesses and the production of documents and records, including law
enforcement records maintained by law enforcement agencies, in conjunction with
the determination of employer payments required under subsection (f) of Section 16-158, a disability claim, an administrative review proceeding, an attempt to obtain information to assist in the collection of sums due to the System, or a felony forfeiture
investigation. The
fees of witnesses for attendance and travel shall be the same as the fees of
witnesses before the circuit courts of this State and shall be paid by the
party seeking the subpoena. The Board may apply to any circuit court in the
State for an order requiring compliance with a subpoena issued under this
Section. Subpoenas issued under this Section shall be subject to applicable
provisions of the Code of Civil Procedure.
(Source: P.A. 99-450, eff. 8-24-15.)
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(40 ILCS 5/16-170) (from Ch. 108 1/2, par. 16-170)
Sec. 16-170.
Board powers and duties.
The board shall have the powers and duties stated in Sections 16-171 through
16-181.2, in addition to the other powers and
duties granted it
in this Article.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-171) (from Ch. 108 1/2, par. 16-171)
Sec. 16-171. To sue and be sued. To sue and be sued in the name of the board.
The board shall not be a corporation. The board may sue to protect any
rights of the retirement system. All actions brought by or against the
board shall be prosecuted or defended, as the case may be, by the Attorney
General. If the board pursues a mandamus action under Section 16-158.2 of this Code as amended by Senate Bill No. 1 of the 98th General Assembly in the form passed by the General Assembly, then the board may select the counsel of their choice.
(Source: P.A. 98-598, eff. 12-5-13.)
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(40 ILCS 5/16-172) (from Ch. 108 1/2, par. 16-172)
Sec. 16-172.
To pay obligations and collect funds due.
To pay promptly expenses and other obligations that accrue under
this Article and to
see that all revenue, including contributions, due the system
is collected without unreasonable delay.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-173) (from Ch. 108 1/2, par. 16-173)
Sec. 16-173.
To maintain records and accounts.
To maintain a separate account for each individual member and annuitant;
to maintain adequate accounting records which shall reflect the financial
condition of the system, and such additional data as shall be necessary for
required calculations, actuarial valuations, and operation of the system;
to have the records of the system photographed, microfilmed or otherwise
reproduced, which photographs, microfilms or reproductions shall be deemed
original records for all purposes.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-174) (from Ch. 108 1/2, par. 16-174)
Sec. 16-174.
To maintain record of proceedings, etc.
To maintain a permanent record of all board
proceedings, which shall be open to public inspection.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-175) (from Ch. 108 1/2, par. 16-175)
Sec. 16-175.
To make annual report.
To make an annual financial report for each fiscal year ended June 30.
A copy of the report shall be transmitted to the State Board of
Education. The report of the retirement system shall contain a summary
of the fiscal transactions for the preceding fiscal year,
the amount of the
accumulated cash and securities, and a balance sheet indicating
the system's financial condition by means of an actuarial
valuation.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-176) (from Ch. 108 1/2, par. 16-176)
Sec. 16-176. To adopt actuarial assumptions. At least once every 3 years, the actuary, as technical advisor,
shall make an actuarial
investigation into the mortality, service and compensation experience of the
members, annuitants, and beneficiaries of the retirement system. Based upon
the result of that investigation, the board shall adopt such
actuarial assumptions as it deems appropriate.
The actuarial investigation required under this Section shall include the System's experience under the early retirement without discount option established in Section 16-133.2, including consideration of the sufficiency of the member and employer contributions under Section 16-133.2 and the active member contribution under Section 16-152 to adequately fund the early retirement without discount option. The Board shall promptly communicate the results of the actuarial investigation to the Commission on Government Forecasting and Accountability. Based on the actuarial investigation, the Commission on Government Forecasting and Accountability shall, no later than February 1 of the next year, recommend to the General Assembly any proportional adjustment in the amounts of the member and employer contributions under Section 16-133.2 that it deems necessary. The early retirement without discount option under subsection (c) of Section 16-133.2 is extended as provided in subsection (d) of that Section. The early retirement without discount option under subsection (d) of Section 16-133.2 terminates on July 1, 2016.(Source: P.A. 98-42, eff. 6-28-13; 99-232, eff. 8-3-15.)
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(40 ILCS 5/16-178) (from Ch. 108 1/2, par. 16-178)
Sec. 16-178.
To receive gifts and legacies.
To receive any gifts or legacies for the benefit of the retirement
system.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-179) (from Ch. 108 1/2, par. 16-179)
Sec. 16-179.
To be trustee of reserves and to invest funds.
To
be the trustee of the reserves created under this Article,
and to invest and reinvest such reserves, subject to the requirements and
restrictions set forth in Sections 1-109, 1-109.1, 1-109.2, 1-110, 1-111,
1-114 and 1-115.
No bank or savings and loan association shall receive investment funds as
permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating to certain investments of
public funds by public agencies", approved July 23, 1943, as now or hereafter
amended. The limitations set forth in such Section 6 shall be applicable
only at the time of investment and shall not require the liquidation of
any investment at any time.
The board shall have the authority to enter into such agreements and to
execute such documents as it determines to be necessary to complete any
investment transaction.
All investments shall be clearly held and accounted for to indicate ownership
by the system. The board may direct the registration of securities or the
holding in interests in real property in the name of the system or in the name
of a nominee created for the express purpose of registration of securities or
holding interests in real property by a national or state bank or trust company
authorized to conduct a trust business in the State of Illinois. The board may
hold title to interests in real property in the name of the system or in the
name of a title holding corporation created for the express purpose of holding
title to interests in real property.
Investments shall be carried at cost or at a value determined in
accordance with generally accepted accounting principles.
(Source: P.A. 90-19, eff. 6-20-97; 90-448, eff. 8-16-97.)
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(40 ILCS 5/16-179.1) (from Ch. 108 1/2, par. 16-179.1)
Sec. 16-179.1.
To
transfer investment functions and securities. The board may, by resolution
duly adopted by a majority
vote of its membership, transfer to the Illinois State Board of Investment
created by Article 22A, for management and administration, all
investments owned by the system of every kind and character.
Upon completion
of such transfer, the authority of the board to make investments
shall terminate. Thereafter, all investments of the assets
of the system shall be made by the Illinois State Board of
Investment in accordance with
the provisions of Article 22A.
Such transfer shall be made not later than the first day of the fourth
month next following the date of such resolution. Before such transfer an
audit of such investments shall be completed by a certified public
accountant selected by the Illinois State Board of Investment and approved
by the Auditor General of the State of Illinois. The expense of such audit
shall be defrayed by the board.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-179.2) (from Ch. 108 1/2, par. 16-179.2)
Sec. 16-179.2.
To Create and Maintain a Salary Reduction Plan.
(1) To
develop a Salary Reduction Plan for members as permitted under the relevant
Sections of the Internal Revenue Code.
(2) To contract with school districts and other employers for the
creation and maintenance of a uniform Salary Reduction Plan for system members.
(3) To adopt all rules necessary and reasonable for the implementation
of this Section.
(Source: P.A. 84-1028.)
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(40 ILCS 5/16-181) (from Ch. 108 1/2, par. 16-181)
Sec. 16-181.
To make deposits.
To keep sufficient cash on deposit in one or more banks, savings and loan
associations or trust companies, organized under the laws of the State of
Illinois or of the United States, for the purpose of making disbursements
for annuities and other expenses; provided that the sum on deposit in any
one bank, savings and loan association or trust company shall not exceed
25% of the paid up capital and surplus of the depository.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements,
other than the maximum deposit requirement, established pursuant to Section
6 of "An Act relating to certain investments of public funds by public
agencies", approved July 23, 1943, as now or hereafter amended.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-181.1) (from Ch. 108 1/2, par. 16-181.1)
Sec. 16-181.1.
To provide office space.
To rent, lease, or acquire
such space as may be necessary for the proper administration of the system.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-181.2) (from Ch. 108 1/2, par. 16-181.2)
Sec. 16-181.2.
To furnish statements.
To furnish annually a statement
of account to each teacher.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-181.3)
Sec. 16-181.3.
To prescribe the manner of payment.
To prescribe by rule
the manner of repaying refunds and purchasing the various optional service
credits permitted under this Article. The rules may prescribe the conditions
under which installment payments or partial payments may be accepted and may
specify the method of computing any interest due.
(Source: P.A. 90-448, eff. 8-16-97.)
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(40 ILCS 5/16-181.4) Sec. 16-181.4. To request information. To request such information from any member, annuitant, beneficiary, or employer as is necessary for the proper administration of the System.
(Source: P.A. 99-450, eff. 8-24-15.) |
(40 ILCS 5/16-182) (from Ch. 108 1/2, par. 16-182)
Sec. 16-182. Members' Contribution Reserve. On July 1, 2003, the
Members' Contribution Reserve is abolished and the remaining balance shall be
transferred from that Reserve to the Benefit Trust Reserve.
(Source: P.A. 95-331, eff. 8-21-07.)
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(40 ILCS 5/16-184) (from Ch. 108 1/2, par. 16-184)
Sec. 16-184.
Supplementary Annuity Reserve.
On July 1, 2003, the Supplemental Annuity
Reserve is abolished and any remaining balance shall be transferred from that
Reserve to the Benefit Trust Reserve.
(Source: P.A. 93-469, eff. 8-8-03.)
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(40 ILCS 5/16-185) (from Ch. 108 1/2, par. 16-185)
Sec. 16-185.
Benefit Trust Reserve.
(a) On July 1, 2003, the Employer's Contribution Reserve shall be
renamed the Benefit Trust Reserve. The Benefit Trust Reserve
shall serve as a clearing account for income and expenses of the System as
well as transfers to and from the other reserve accounts established under
this Article and adjustments thereto.
(b) This Reserve shall be credited with all contributions, investment
income, and other income received by the System, except as otherwise
required by this Article.
(c) This Reserve shall be charged with all benefits and refunds paid and
all other expenses of the System, except as otherwise required under this
Article.
(Source: P.A. 93-469, eff. 8-8-03.)
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(40 ILCS 5/16-186.3) (from Ch. 108 1/2, par. 16-186.3)
Sec. 16-186.3.
Reserve for minimum retirement annuity.
(a) A Minimum Retirement Annuity Reserve is established for the purpose
of crediting funds received and charging disbursements for minimum retirement
annuity payments under Section 16-136.2 and Section 16-136.3.
This Reserve shall be credited with:
(1) The total of all contributions made by annuitants | ||
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(2) Amounts contributed to the System by the State of | ||
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(3) Regular interest computed annually on the average | ||
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This Reserve shall be charged with all minimum retirement annuity
payments under Section 16-136.2 and Section 16-136.3.
(b) After all minimum retirement annuity payments have been completed,
any remaining funds shall be transferred from this Reserve to the Benefit
Trust Reserve.
(Source: P.A. 93-469, eff. 8-8-03.)
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(40 ILCS 5/16-187) (from Ch. 108 1/2, par. 16-187)
Sec. 16-187.
Custodian of fund - warrants and vouchers - audits.
(a) The State Treasurer is ex-officio custodian of the funds of the
retirement system. He or she may process
payments from the funds of the system for
the purposes herein specified upon warrants or direct deposit transmittals
of the State Comptroller.
Commencing January 1, 1987, the State Treasurer shall credit interest, at
current rates, for any monies directly held. Such interest shall be
calculated using an average daily cash basis.
He or she shall be liable on the Treasurer's
official bond for the proper performance of duties and be
held accountable for all cash and securities in his or her
custody. He or she shall keep books and
accounts in the manner prescribed by the board, and they shall always be
subject to the inspection of the board or any member thereof.
(b) The State Comptroller may draw warrants or prepare direct deposit
transmittals payable from the fund upon
the State Treasurer for the purposes herein provided upon the
presentation of vouchers approved by the secretary of
the board. The board shall file with the State Comptroller an attested
copy of a resolution designating such persons as his authority for making
payments upon such vouchers.
(c) At the end of each fiscal year, the board shall have the
accounts and records of the system audited by a person authorized to
practice public accounting under the laws of this state selected by the
Auditor General. Copies of all audits performed shall be filed with the
State Board of Education and the Auditor General.
(Source: P.A. 90-448, eff. 8-16-97.)
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(40 ILCS 5/16-188) (Section scheduled to be repealed on January 1, 2027) Sec. 16-188. Proxy voting. (a) In this Section, "fiduciary" has the meaning given to that term in Section 1-101.2. (b) Notwithstanding the Board's investment authority, and upon the affirmative vote of at least three-fifths of the members of the Board, the State Treasurer shall be authorized to manage the domestic and international proxy voting activity for shares held directly by the System and execute required ballots on behalf of the System. The Board's consent granted under this Section may be revoked at any time upon the affirmative vote of a majority of the members of the Board. (c) When the State Treasurer is managing any proxy voting activity in accordance with subsection (b), the following shall apply: (1) the State Treasurer shall provide the Board with (i) comprehensive proxy voting reports on a quarterly basis and as requested by the Board and (ii) access to communications with its third-party proxy voting service, if any, used in preparing the comprehensive proxy voting reports requested by the Board; and (2) the Board may provide the State Treasurer with guidance for proxy voting, which, if provided, the State Treasurer shall consider when voting. (d) The State Treasurer shall act as a fiduciary to the System with regard to all aspects of the State Treasurer's management of the proxy voting activity as provided under subsection (b). (e) With respect to this Section, and with respect to the State Treasurer's management of the proxy voting activity as provided for under subsection (b), the Board is exempt from any conflicting statutory or common law obligations, including any fiduciary or co-fiduciary duties under this Article and Article 1. (f) With respect to this Section and with respect to the State Treasurer's management of the proxy voting activity as provided for under subsection (b), the Board, its staff, and the trustees of the Board shall not be liable for any damage or suits where damages are sought for negligent or wrongful acts alleged to have been committed in connection with the management of proxy voting activity as provided for under this Section. (g) In order to facilitate the State Treasurer's proxy voting activities under this Section and before the State Treasurer begins proxy voting activities, the State Treasurer and the Board shall enter into an intergovernmental agreement concerning costs, proxy voting guidance, reports and other documents, and other issues. (h) This Section is repealed on January 1, 2027.
(Source: P.A. 103-468, eff. 8-4-23.) |
(40 ILCS 5/16-189) Sec. 16-189. Fiduciary report. On or before September 1, 2023, and annually thereafter, the Board shall publish its guidelines for voting proxy ballots and a detailed report on its website describing how the Board is considering sustainability factors as defined in the Illinois Sustainable Investing Act. The report shall: (1) describe the Board's strategy as it relates to | ||
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(2) outline the process for regular assessment across | ||
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(3) disclose how each investment manager serving as a | ||
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(4) provide a comprehensive proxy voting report; (5) provide an overview of all corporate engagement | ||
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(6) include any other information the Board deems | ||
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(Source: P.A. 103-468, eff. 8-4-23.) |
(40 ILCS 5/16-189.1) (from Ch. 108 1/2, par. 16-189.1)
Sec. 16-189.1.
Benefits payable monthly.
Retirement annuities and other
benefits, unless otherwise specified in this Article, shall be paid in 12
monthly installments as of the first day of each month and shall cover the
preceding month or proportionate part thereof then due. Provided,
however, upon the death of a member in receipt of a benefit, an annuitant
or a beneficiary, benefits shall be paid through the last day of the month
in which death occurs.
(Source: P.A. 84-1028.)
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(40 ILCS 5/16-190) (from Ch. 108 1/2, par. 16-190)
Sec. 16-190.
Annuities, etc., - exempt.
The right of a person to a retirement annuity or other benefit, to the
return of contributions, the retirement annuity or
other benefit itself,
any optional benefit, any other right accrued
or accruing to any person under the provisions of this Article, and the
moneys in the fund created by this Article, shall be subject neither to
attachment, garnishment, execution, or other seizure by process, nor to
sale, pledge, mortgage or other alienation, and shall not be assignable
except as in this Article provided. A person receiving an annuity or benefit
may authorize withholding from such annuity or benefit for the purposes
enumerated in the "State Salary and Annuity Withholding Act", approved August
21, 1961, as now or hereafter amended. The moneys in the fund are exempt from
any state or municipal tax.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-190.1) (from Ch. 108 1/2, par. 16-190.1)
Sec. 16-190.1.
Payment of benefits on account of minors, disabled persons
and others. Benefits under this Article due minors or disabled persons
as defined in Section 16-140(4) may be paid (1) to any person who has legally
qualified and is acting as guardian of the minor's or disabled person's person
or property in any jurisdiction; or (2) to a parent of the minor or to any
adult person with whom the minor or disabled person may be residing, provided
the board is assured that the moneys will be held in trust or used for the
support of the minor or disabled person; or (3) to the trustee of a trust
established for the benefit of the minor or disabled person. In addition, an
adult person to whom benefits under this Article may be paid, while of sound
mind and memory, may designate in writing any adult person with whom he or she
resides or who provides responsible assistance or advice to him or her in the
conduct of his or her affairs to receive benefits due or to become due to him
or her under this Article, and benefits may be paid in accordance with such
designation provided the board is assured that the same will be held in trust
or used for the support of the person making such designation. The written
receipt from the parent or other adult person shall constitute an absolute
discharge of the system's liability in respect of the amounts paid by the
system.
(Source: P.A. 87-1265.)
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(40 ILCS 5/16-190.5) Sec. 16-190.5. Accelerated pension benefit payment in lieu of any pension benefit. (a) As used in this Section: "Eligible person" means a person who: (1) has terminated service; (2) has accrued sufficient service credit to be | ||
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(3) has not received any retirement annuity under | ||
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(4) has not made the election under Section 16-190.6. "Pension benefit" means the benefits under this Article, or Article 1 as it relates to those benefits, including any anticipated annual increases, that an eligible person is entitled to upon attainment of the applicable retirement age. "Pension benefit" also includes applicable survivor's or disability benefits. (b) As soon as practical after June 4, 2018 (the effective date of Public Act 100-587), the System shall calculate, using actuarial tables and other assumptions adopted by the Board, the present value of pension benefits for each eligible person who requests that information and shall offer each eligible person the opportunity to irrevocably elect to receive an amount determined by the System to be equal to 60% of the present value of his or her pension benefits in lieu of receiving any pension benefit. The offer shall specify the dollar amount that the eligible person will receive if he or she so elects and shall expire when a subsequent offer is made to an eligible person. The System shall make a good faith effort to contact every eligible person to notify him or her of the election. Until June 30, 2026, an eligible person may irrevocably elect to receive an accelerated pension benefit payment in the amount that the System offers under this subsection in lieu of receiving any pension benefit. A person who elects to receive an accelerated pension benefit payment under this Section may not elect to proceed under the Retirement Systems Reciprocal Act with respect to service under this Article. (c) A person's creditable service under this Article shall be terminated upon the person's receipt of an accelerated pension benefit payment under this Section, and no other benefit shall be paid under this Article based on the terminated creditable service, including any retirement, survivor, or other benefit; except that to the extent that participation, benefits, or premiums under the State Employees Group Insurance Act of 1971 are based on the amount of service credit, the terminated service credit shall be used for that purpose. (d) If a person who has received an accelerated pension benefit payment under this Section returns to active service under this Article, then: (1) Any benefits under the System earned as a result | ||
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(2) The accelerated pension benefit payment may not | ||
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(e) As a condition of receiving an accelerated pension benefit payment, the accelerated pension benefit payment must be transferred into a tax qualified retirement plan or account. The accelerated pension benefit payment under this Section may be subject to withholding or payment of applicable taxes, but to the extent permitted by federal law, a person who receives an accelerated pension benefit payment under this Section must direct the System to pay all of that payment as a rollover into another retirement plan or account qualified under the Internal Revenue Code of 1986, as amended. (f) Upon receipt of a member's irrevocable election to receive an accelerated pension benefit payment under this Section, the System shall submit a voucher to the Comptroller for payment of the member's accelerated pension benefit payment. The Comptroller shall transfer the amount of the voucher from the State Pension Obligation
Acceleration Bond Fund to the System, and the System shall transfer the amount into the member's eligible retirement plan or qualified account. (g) The Board shall adopt any rules, including emergency rules, necessary to implement this Section. (h) No provision of Public Act 100-587 shall be interpreted in a way that would cause the applicable System to cease to be a qualified plan under the Internal Revenue Code of 1986.
(Source: P.A. 101-10, eff. 6-5-19; 102-558, eff. 8-20-21; 102-718, eff. 5-5-22.) |
(40 ILCS 5/16-190.6) Sec. 16-190.6. Accelerated pension benefit payment for a reduction in annual retirement annuity and survivor's annuity increases. (a) As used in this Section: "Accelerated pension benefit payment" means a lump sum payment equal to 70% of the difference of the present value of the automatic annual increases to a Tier 1 member's retirement annuity and survivor's annuity using the formula applicable to the Tier 1 member and the present value of the automatic annual increases to the Tier 1 member's retirement annuity using the formula provided under subsection (b-5) and the survivor's annuity using the formula provided under subsection (b-6). "Eligible person" means a person who: (1) is a Tier 1 member; (2) has submitted an application for a retirement | ||
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(3) meets the age and service requirements for | ||
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(4) has not received any retirement annuity under | ||
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(5) has not made the election under Section 16-190.5. (b) As soon as practical after June 4, 2018 the effective date of Public Act 100-587) and until June 30, 2026, the System shall implement an accelerated pension benefit payment option for eligible persons. Upon the request of an eligible person, the System shall calculate, using actuarial tables and other assumptions adopted by the Board, an accelerated pension benefit payment amount and shall offer that eligible person the opportunity to irrevocably elect to have his or her automatic annual increases in retirement annuity calculated in accordance with the formula provided under subsection (b-5) and any increases in survivor's annuity payable to his or her survivor's annuity beneficiary calculated in accordance with the formula provided under subsection (b-6) in exchange for the accelerated pension benefit payment. The election under this subsection must be made before the eligible person receives the first payment of a retirement annuity otherwise payable under this Article. (b-5) Notwithstanding any other provision of law, the retirement annuity of a person who made the election under subsection (b) shall be subject to annual increases on the January 1 occurring either on or after the attainment of age 67 or the first anniversary of the annuity start date, whichever is later. Each annual increase shall be calculated at 1.5% of the originally granted retirement annuity. (b-6) Notwithstanding any other provision of law, a survivor's annuity payable to a survivor's annuity beneficiary of a person who made the election under subsection (b) shall be subject to annual increases on the January 1 occurring on or after the first anniversary of the commencement of the annuity. Each annual increase shall be calculated at 1.5% of the originally granted survivor's annuity. (c) If a person who has received an accelerated pension benefit payment returns to active service under this Article, then: (1) the calculation of any future automatic annual | ||
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(2) the accelerated pension benefit payment may not | ||
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(d) As a condition of receiving an accelerated pension benefit payment, the accelerated pension benefit payment must be transferred into a tax qualified retirement plan or account. The accelerated pension benefit payment under this Section may be subject to withholding or payment of applicable taxes, but to the extent permitted by federal law, a person who receives an accelerated pension benefit payment under this Section must direct the System to pay all of that payment as a rollover into another retirement plan or account qualified under the Internal Revenue Code of 1986, as amended. (d-5) Upon receipt of a member's irrevocable election to receive an accelerated pension benefit payment under this Section, the System shall submit a voucher to the Comptroller for payment of the member's accelerated pension benefit payment. The Comptroller shall transfer the amount of the voucher from the State Pension Obligation
Acceleration Bond Fund to the System, and the System shall transfer the amount into the member's eligible retirement plan or qualified account. (e) The Board shall adopt any rules, including emergency rules, necessary to implement this Section. (f) No provision of this Section shall be interpreted in a way that would cause the applicable System to cease to be a qualified plan under the Internal Revenue Code of 1986.
(Source: P.A. 101-10, eff. 6-5-19; 102-718, eff. 5-5-22.) |
(40 ILCS 5/16-191) (from Ch. 108 1/2, par. 16-191)
Sec. 16-191.
No gain or profit on investments.
No trustee or employee of the board shall have any interest in the gains
or profits of any investment made by the board, or as such receive any pay
or emolument for his or her services. No trustee or employee of the board shall,
directly or indirectly, for himself or herself or as an agent, in any
manner use such
gains or profits except to make current and necessary payments authorized
by the board. No trustee or employee of the board shall become an endorser
or surety or in any manner an obligor for moneys loaned or borrowed from
the board.
Any person violating any of the provisions of this section is guilty of
a petty offense.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-192) (from Ch. 108 1/2, par. 16-192)
Sec. 16-192.
Correction of errors.
Should any change or error in the records result in any member, annuitant
or beneficiary receiving from the system more or less than he or she would have been
entitled to receive had the records been correct, the board shall correct
such error, and, as far as practicable, shall adjust the payments in such a
manner that the actuarial equivalent of the benefit to which such
member, annuitant or beneficiary was entitled shall be paid; however, in
no event shall the system be required to change the records of any member,
annuitant or beneficiary if, at the time of discovery of the error,
more than 4 fiscal years have elapsed since the fiscal
year in which the error occurred.
(Source: P.A. 85-1008; 86-1488.)
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(40 ILCS 5/16-193) (from Ch. 108 1/2, par. 16-193)
Sec. 16-193.
Retirement Systems Reciprocal Act.
The "Retirement Systems Reciprocal Act", being Article 20 of this Code,
as now enacted and hereafter amended, is hereby adopted and made a part of
this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/16-197) (from Ch. 108 1/2, par. 16-197)
Sec. 16-197.
Undivided interest.
All assets of the system shall be invested as one fund and no person,
group of persons or entity shall have any right other than to an undivided
interest in the whole, and all references to the reserves shall be
construed as not requiring a segregation of assets but only the maintenance
of a separate account indicating the equities in the assets as a whole.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/16-198) (from Ch. 108 1/2, par. 16-198)
Sec. 16-198.
Fraud.
Any person, member, trustee, or employee of the board who knowingly
makes any false statement or falsifies or permits to be falsified any
record of this retirement system in any attempt to defraud such system as a
result of such act, or intentionally or knowingly defrauds this retirement
system in any manner, is guilty of a Class A misdemeanor.
(Source: P.A. 77-2830.)
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(40 ILCS 5/16-199) (from Ch. 108 1/2, par. 16-199)
Sec. 16-199. Felony conviction. None of the benefits provided for in this Article shall be paid to any
person who is convicted of any felony relating to or arising out of or in
connection with his or her service as a teacher.
None of the benefits provided for in this Article shall be paid to any person who otherwise would receive a survivor benefit who is convicted of any felony relating to or arising out of or in connection with the service of the teacher from whom the benefit results. This Section shall not operate to impair any contract or vested right acquired
prior to July 9, 1955 under any law or laws
continued in this Article, nor to
preclude the right to a refund, and for the changes under this amendatory Act of the 100th General Assembly, shall not impair any contract or vested right acquired by a survivor prior to the effective date of this amendatory Act of the 100th General Assembly. The System may sue any such person to
collect all moneys paid in excess of refundable contributions.
All teachers entering or re-entering service after July 9, 1955 shall be
deemed to have consented to the provisions of this Section as a condition
of membership, and all participants entering service subsequent to the effective date of this amendatory Act of the 100th General Assembly shall be deemed to have consented to the provisions of this amendatory Act as a condition of participation.
(Source: P.A. 100-334, eff. 8-25-17.)
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(40 ILCS 5/16-200) (from Ch. 108 1/2, par. 16-200)
Sec. 16-200.
Administrative review.
The Administrative Review Law, and
all amendments and modifications thereof, and the rules adopted pursuant
thereto, shall apply to and govern all proceedings for the judicial review
of final administrative decisions of the board provided for under this
Article. The term "administrative decision" is defined as in Section 3-101
of the Code of Civil Procedure. The venue for actions brought under the
Administrative Review Law shall be Sangamon County.
(Source: P.A. 87-794.)
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(40 ILCS 5/16-201) (from Ch. 108 1/2, par. 16-201)
Sec. 16-201.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article as a
part thereof.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/16-202) (from Ch. 108 1/2, par. 16-202)
Sec. 16-202.
Savings clause.
The repeal or amendment of any Section
or provision of this Article by this amendatory Act of 1984 shall not affect
or impair any pensions, benefits, rights or credits accrued or in effect
prior thereto.
(Source: P.A. 83-1440.)
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(40 ILCS 5/16-203)
Sec. 16-203. Application and expiration of new benefit increases. (a) As used in this Section, "new benefit increase" means an increase in the amount of any benefit provided under this Article, or an expansion of the conditions of eligibility for any benefit under this Article, that results from an amendment to this Code that takes effect after June 1, 2005 (the effective date of Public Act 94-4). "New benefit increase", however, does not include any benefit increase resulting from the changes made to Article 1 or this Article by Public Act 95-910, Public Act 100-23, Public Act 100-587, Public Act 100-743, Public Act 100-769, Public Act 101-10, Public Act 101-49, Public Act 102-16, or Public Act 102-871. (b) Notwithstanding any other provision of this Code or any subsequent amendment to this Code, every new benefit increase is subject to this Section and shall be deemed to be granted only in conformance with and contingent upon compliance with the provisions of this Section.
(c) The Public Act enacting a new benefit increase must identify and provide for payment to the System of additional funding at least sufficient to fund the resulting annual increase in cost to the System as it accrues. Every new benefit increase is contingent upon the General Assembly providing the additional funding required under this subsection. The Commission on Government Forecasting and Accountability shall analyze whether adequate additional funding has been provided for the new benefit increase and shall report its analysis to the Public Pension Division of the Department of Insurance. A new benefit increase created by a Public Act that does not include the additional funding required under this subsection is null and void. If the Public Pension Division determines that the additional funding provided for a new benefit increase under this subsection is or has become inadequate, it may so certify to the Governor and the State Comptroller and, in the absence of corrective action by the General Assembly, the new benefit increase shall expire at the end of the fiscal year in which the certification is made.
(d) Every new benefit increase shall expire 5 years after its effective date or on such earlier date as may be specified in the language enacting the new benefit increase or provided under subsection (c). This does not prevent the General Assembly from extending or re-creating a new benefit increase by law. (e) Except as otherwise provided in the language creating the new benefit increase, a new benefit increase that expires under this Section continues to apply to persons who applied and qualified for the affected benefit while the new benefit increase was in effect and to the affected beneficiaries and alternate payees of such persons, but does not apply to any other person, including, without limitation, a person who continues in service after the expiration date and did not apply and qualify for the affected benefit while the new benefit increase was in effect.
(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; 102-813, eff. 5-13-22; 102-871, eff. 5-13-22; 103-154, eff. 6-30-23.) |
(40 ILCS 5/16-204) Sec. 16-204. Optional defined contribution benefit. As soon as practicable after the effective date of this amendatory Act of the 100th General Assembly, the System shall offer a defined contribution benefit to active members of the System. The defined contribution benefit shall be an optional benefit to any member who chooses to participate. The defined contribution benefit shall collect optional employee and optional employer contributions into an account and shall offer investment options to the participant. The benefit under this Section shall be operated in full compliance with any applicable State and federal laws, and the System shall utilize generally accepted practices in creating and maintaining the benefit for the best interest of the participants. In administering the defined contribution benefit, the System shall require that the defined contribution benefit recordkeeper agree that, in performing services with respect to the defined contribution benefit, the recordkeeper: (i) will not use information received as a result of providing services with respect to the defined contribution benefit or the participants in the defined contribution benefit to solicit the participants in the defined contribution benefit for the purpose of cross-selling nonplan products and services, unless in response to a request by a participant in the defined contribution benefit; and (ii) will not promote, recommend, endorse, or solicit participants in the defined contribution benefit to purchase any financial products or services outside of the defined contribution benefit, except that links to parts of the recordkeeper's website that are generally available to the public, are about commercial products, and may be encountered by a participant in the regular course of navigating the recordkeeper's website will not constitute a violation of this item (ii). The System may use funds from the employee and employer contributions to defray any and all costs of creating and maintaining the benefit. In addition, the System may use funds provided under Section 16-158 of this Code to defray any and all costs of creating and maintaining the benefit and then shall reimburse those costs from funds received from the employee and employer contributions under this Section. All employers must comply with the reporting and administrative functions established by the System and are required to implement the benefits established under this Section. The System shall produce an annual report on the participation in the benefit and shall make the report public.
As soon as is practicable on or after January 1, 2022, the System shall automatically enroll any employee who first becomes an active member or participant in the System. A member automatically enrolled under this Section shall have 3% of his or her pre-tax gross compensation for each compensation period deferred into his or her deferred compensation account, unless the member otherwise instructs the System on forms approved by the System. A member may elect, in a manner provided for by the System, to not participate in the defined contribution benefit or to increase or reduce the amount of pre-tax gross compensation contributed, consistent with State or federal law. A member shall be automatically enrolled in the benefit beginning the first day of the pay period following the member's 30th day of employment. A member who has been automatically enrolled in the benefit may elect, within 90 days of enrollment, to withdraw from the benefit and receive a refund of amounts deferred, plus or minus any applicable earnings, investment fees, and administrative fees. Any refunded amount shall be included in the member's gross income for the taxable year in which the refund is issued. On or after January 1, 2023, the System may elect to increase the automatic annual contributions under this Section. The increase in the rate of contribution, however, shall not exceed 2% of a member's pre-tax gross compensation per year, and at no time shall any total contribution exceed any contribution limits established by State or federal law. (Source: P.A. 102-540, eff. 8-20-21; 103-552, eff. 8-11-23.) |
(40 ILCS 5/16-205)
Sec. 16-205. (Repealed).
(Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 100-23, eff. 7-6-17.)
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(40 ILCS 5/16-206)
Sec. 16-206. (Repealed).
(Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 100-23, eff. 7-6-17.)
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(40 ILCS 5/Art. 17 heading) ARTICLE 17.
PUBLIC SCHOOL TEACHERS' PENSION AND RETIREMENT FUND--CITIES OF
OVER 500,000 INHABITANTS
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(40 ILCS 5/17-101) (from Ch. 108 1/2, par. 17-101)
Sec. 17-101.
Creation of fund.
In each city with a population over 500,000, there is created a Public
School Teachers' Pension and Retirement Fund to be maintained and
administered in the manner prescribed in this Article and to be known as
the Public School Teachers' Pension and Retirement Fund of ....(city).
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-102) (from Ch. 108 1/2, par. 17-102)
Sec. 17-102.
Terms defined.
The terms used in this Article shall have the meanings ascribed to them
in Sections 17-103 to 17-113, inclusive, except when the context
otherwise requires.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-103) (from Ch. 108 1/2, par. 17-103)
Sec. 17-103.
Actuarial equivalent.
"Actuarial equivalent": A pension equal to the value of another sum or
pension when computed according to the actuarial tables and rate of
interest in use by the board.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-104) (from Ch. 108 1/2, par. 17-104)
Sec. 17-104.
Board.
"Board": Board of Trustees of the Public School Teachers' Pension and
Retirement Fund of ....(city) as created in this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-105) (from Ch. 108 1/2, par. 17-105)
Sec. 17-105.
Board of Education.
"Board of Education": The Board of Education in a city in which the fund
provided by this Article is maintained and operated.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-105.1)
Sec. 17-105.1. Employer. "Employer": The Board of Education, a
charter school as defined under the provisions of Section 27A-5 of the School
Code, and a contract school operating pursuant to an agreement with the Board of Education.
(Source: P.A. 102-636, eff. 8-27-21.)
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(40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106)
Sec. 17-106. Contributor, member or teacher. "Contributor", "member"
or "teacher": All members of the teaching force of the city, including
principals, assistant principals, the general superintendent of schools,
deputy superintendents of schools, associate superintendents of schools,
assistant and district superintendents of schools, members of the Board of
Examiners, all other persons whose employment requires a teaching certificate
issued under the laws governing the certification of teachers, any educational staff employed in a contract school operating pursuant to an agreement with the Board of Education who is employed in a position requiring certification or licensure under the School Code (excluding all managerial, supervisory, and confidential employees) and is required to or elects to participate pursuant to Section 17-134.2, any educational,
administrative, professional, or other staff employed in a charter school
operating in compliance with the Charter Schools Law who is certified under
the law governing the certification of teachers, and employees of the Board,
but excluding persons contributing concurrently to any other public employee
pension system in Illinois for the same employment or receiving retirement
pensions under another Article of this Code for that same employment, persons
employed on an hourly basis (provided that an Employer may not reclassify a non-hourly employee as an hourly employee for the purpose of evading or avoiding its obligations under this Article), and persons receiving pensions from the Fund who
are employed temporarily by an Employer and not on an annual basis.
All teachers or staff regardless of their position shall presumptively be participants in the Fund, unless the Employer establishes to the satisfaction of the Board that an individual certified teacher or staff member is not working as a teacher or administrator directly or indirectly with the Charter School. Any certified teacher or staff employed by a corporate or non-profit entity engaged in the administration of a charter school shall presumptively be a participant in the Fund, unless the organization establishes to the satisfaction of the Board that an individual certified teacher or staff member is not working as a teacher or administrator directly or indirectly with the Charter School. In the case of a person who has been making contributions and otherwise
participating in this Fund prior to the effective date of this amendatory
Act of the 91st General Assembly, and whose right to participate in
the Fund is established or confirmed by this amendatory Act, such prior
participation in the Fund, including all contributions previously made and
service credits previously earned by the person, are hereby validated.
The changes made to this Section and Section 17-149 by this amendatory
Act of the 92nd General Assembly apply without regard to whether the person
was in service on or after the effective date of this amendatory Act,
notwithstanding Sections 1-103.1 and 17-157.
(Source: P.A. 102-636, eff. 8-27-21.)
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(40 ILCS 5/17-106.1) Sec. 17-106.1. Administrator. Administrator means a member who (i) is employed in a position that requires him or her to hold a professional educator license with an administrative endorsement issued by the State Board of Education, (ii) is not on the Chicago teachers' or the Chicago charter school teachers' salary schedule, or (iii) is paid on an administrative payroll.
(Source: P.A. 102-210, eff. 1-1-22.) |
(40 ILCS 5/17-107) (from Ch. 108 1/2, par. 17-107)
Sec. 17-107.
Creditable service.
"Creditable service": Service for which pension credits have not been
validated concurrently with its rendition, but which may be validated for
pension purposes upon compliance with the conditions prescribed in this
Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-108) (from Ch. 108 1/2, par. 17-108)
Sec. 17-108.
Fiscal year and school year.
"Fiscal year" and "school year": Beginning July 1, 1999, the period
beginning on the 1st day of July of one calendar year and ending on the 30th
day of June of the next calendar year. Each fiscal year and each school year
shall be designated for convenience with the same number as the calendar year
in which that fiscal year or school year ends. The fiscal year which begins
September 1, 1998 shall end June 30, 1999.
(Source: P.A. 90-548, eff. 12-4-97.)
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(40 ILCS 5/17-109) (from Ch. 108 1/2, par. 17-109)
Sec. 17-109.
Fund.
"Fund": The Public School Teachers' Pension and Retirement Fund of
....(city).
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-109.1) (from Ch. 108 1/2, par. 17-109.1)
Sec. 17-109.1.
Pension deferred.
"Pension deferred": A pension of a sum determined on termination of
service but payable upon the expiration of a fixed period of time, provided
the person concerned is alive at such date. All such pensions shall be
calculated in accordance with the laws in effect at the date of termination
of service.
(Source: P.A. 83-792.)
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(40 ILCS 5/17-109.2) (from Ch. 108 1/2, par. 17-109.2)
Sec. 17-109.2.
Pension pending period.
"Pension pending period": The time required to process all details attendant on
the granting of a pension after (1) filing an application therefor and (2)
official termination of service.
(Source: P.A. 83-792.)
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(40 ILCS 5/17-110) (from Ch. 108 1/2, par. 17-110)
Sec. 17-110.
Pension period.
"Pension period": All time during which service is creditable for
pension purposes pursuant to this Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-111) (from Ch. 108 1/2, par. 17-111)
Sec. 17-111.
Reversionary pension.
"Reversionary pension": A pension computed on an actuarially equated
basis and payable to a contributor's beneficiary designated under a
prescribed option before retirement, commencing upon the death of the
contributor after retirement on pension and continuing thereafter during
the life of the beneficiary.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-111.1) (from Ch. 108 1/2, par. 17-111.1)
Sec. 17-111.1.
Gender.
Whenever used in this Act, the masculine gender shall be understood to
include the feminine gender.
(Source: P.A. 78-1129.)
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(40 ILCS 5/17-112) (from Ch. 108 1/2, par. 17-112)
Sec. 17-112.
Supplementary payment.
"Supplementary payment": The payment from the retired teachers'
supplementary payment fund necessary to increase a retired teacher's
service or disability retirement pension to the amount provided in Section
17-154.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-113) (from Ch. 108 1/2, par. 17-113)
Sec. 17-113.
Validated service.
"Validated service": Service accredited for pension purposes under this
Article.
(Source: Laws 1963, p. 161.)
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(40 ILCS 5/17-114) (from Ch. 108 1/2, par. 17-114)
Sec. 17-114. Computation of service. (a) When computing days of validated service, contributors shall receive one day of service credit for each day for which they are paid salary representing a partial or a full day of employment rendered to an Employer or the Board. (b) When computing months of validated service, 17 or more days of service rendered to an Employer or the Board in a calendar month shall entitle a contributor to one month of service credit for purposes of this Article. (c) When computing years of validated service rendered, 170 or more days of service in a fiscal year or 10 or more months of service in a fiscal year shall constitute one year of service credit. (d) Notwithstanding subsections (b) and (c) of this Section, validated service in any fiscal year shall be that fraction of a year equal to the ratio of the number of days of service to 170 days. (e) For purposes of this Section, no contributor shall earn (i) more than one year of service credit per fiscal year, (ii) more than one day of service credit per calendar day, or (iii) more than 10 days of service credit in a 2 calendar week period as determined by the Fund.
(Source: P.A. 99-176, eff. 7-29-15.)
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(40 ILCS 5/17-114.1) (from Ch. 108 1/2, par. 17-114.1)
Sec. 17-114.1.
(a) Any active member of the General Assembly Retirement
System may apply for transfer of his credits and creditable service accumulated
under this Fund to the General Assembly System. Such credits and creditable
service shall be transferred forthwith. Payment by this Fund to the General
Assembly Retirement System shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the applicant, including
interest, on the books of the Fund on the date of transfer, but excluding any additional
or optional credits, which credits shall be refunded to the applicant; and
(2) employer credits computed and credited under this Article including
interest, on the books of the Fund on the date the member terminated service
under the Fund. Participation in this Fund as to any credits transferred
under this Section shall terminate on the date of transfer.
(b) An active member of the General Assembly may reinstate service and
service credits terminated upon receipt of a separation benefit, by payment
to the Fund of the amount of the separation benefit plus interest thereon
to the date of payment.
(Source: P.A. 81-1128.)
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(40 ILCS 5/17-114.2) (from Ch. 108 1/2, par. 17-114.2)
Sec. 17-114.2.
Transfer of creditable service to Article 8, 9 or 13
Fund.
(a) Any city officer as defined in Section 8-243.2
of this Code, any county officer elected by vote of the people
who is a participant in the pension fund established under Article 9 of this
Code, and any elected sanitary district commissioner who is a participant in a
pension fund established under Article 13 of this Code,
may apply for transfer of his credits and creditable service
accumulated under this Fund to such Article 8, 9 or 13 fund. Such
creditable service shall be transferred forthwith. Payment by this Fund to
the Article 8, 9 or 13 fund shall be made at the same time and shall consist of:
(1) the amounts accumulated to the credit of the | ||
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(2) employer contributions computed by the Board and | ||
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Participation in this Fund as to any credits transferred under this
Section shall terminate on the date of transfer.
(b) Any such elected city officer, county officer or sanitary
district commissioner
may reinstate credits and creditable service terminated upon receipt of a
separation benefit, by payment to the Fund of the amount of the separation
benefit plus interest thereon to the date of payment.
(Source: P.A. 85-964; 86-1488.)
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(40 ILCS 5/17-114.3) (from Ch. 108 1/2, par. 17-114.3)
Sec. 17-114.3.
(a) Persons otherwise required or eligible to participate
in the Fund who elect to continue participation in the General Assembly
System under Section 2-117.1 may not participate in the Fund for the duration
of such continued participation under Section 2-117.1.
(b) Upon terminating such continued participation, a person may transfer
credits and creditable service accumulated under Section 2-117.1 to this
Fund, upon payment to the Fund of the amount by which (1) the employer
and employee contributions that would have been required if he had participated
in this Fund during the period for which credit under Section 2-117.1 is
being transferred, plus interest thereon at 6% per annum
compounded annually from the date of such participation to the date of
payment, exceeds (2) the amounts actually transferred under that Section to
the Fund.
(Source: P.A. 86-272.)
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(40 ILCS 5/17-115) (from Ch. 108 1/2, par. 17-115)
Sec. 17-115.
Eligibility for service retirement pension.
(a) The Board shall find a contributor eligible for service
retirement pension when he has:
(1) Left the employment of an Employer after | ||
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(2) Contributed to the Fund the total sums provided | ||
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(3) Contributed as a member of the teaching force in | ||
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(4) Filed a written application for pension.
(b) In computing the years of service for which annuity is granted, the
following conditions shall apply:
(1) No more than 10 years of teaching service in | ||
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(2) Up to 5 years of military active service, if | ||
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(Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-116) (from Ch. 108 1/2, par. 17-116)
Sec. 17-116. Service retirement pension.
(a) Each teacher having 20 years of service upon attainment of age 55,
or who thereafter attains age 55 shall be entitled to a service retirement
pension upon or after attainment of age 55; and each teacher in service on or
after July 1, 1971, with 5 or more but less than 20 years of service shall be
entitled to receive a service retirement pension upon or after attainment of
age 62.
(b) The service retirement pension
for a teacher who retires on or after June 25, 1971, at age
60 or over, shall be calculated as follows:
(1) For creditable service earned before July 1, 1998 | ||
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(2) For creditable service earned on or after July 1, | ||
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(3) For all other creditable service: 2.2% of | ||
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(c) When computing such service retirement pensions, the
following conditions shall apply:
1. Average salary shall consist of the average annual | ||
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2. Proportionate credit shall be given for validated | ||
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3. For retirement at age 60 or over the pension shall | ||
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4. For separation from service below age 60 to a | ||
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5. No additional pension shall be granted for service | ||
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6. Service retirement pensions shall begin on the | ||
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7. A member who is eligible to receive a retirement | ||
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8. A member retiring after the effective date of this | ||
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(Source: P.A. 101-263, eff. 8-9-19.)
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(40 ILCS 5/17-116.1)
Sec. 17-116.1. (Repealed).
(Source: P.A. 94-4, eff. 6-1-05. Repealed by P.A. 101-352, eff. 8-9-19.)
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(40 ILCS 5/17-116.3)
Sec. 17-116.3. (Repealed).
(Source: P.A. 92-416, eff. 8-17-01. Repealed by P.A. 101-352, eff. 8-9-19.)
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(40 ILCS 5/17-116.4)
Sec. 17-116.4. (Repealed).
(Source: P.A. 92-416, eff. 8-17-01. Repealed by P.A. 101-352, eff. 8-9-19.)
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(40 ILCS 5/17-116.5)
Sec. 17-116.5. (Repealed).
(Source: P.A. 88-511. Repealed by P.A. 101-352, eff. 8-9-19.)
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(40 ILCS 5/17-116.6)
Sec. 17-116.6. (Repealed).
(Source: P.A. 90-655, eff. 7-30-98. Repealed by P.A. 101-352, eff. 8-9-19.)
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(40 ILCS 5/17-117) (from Ch. 108 1/2, par. 17-117)
Sec. 17-117.
Disability retirement pension.
(a) The conditions prescribed in items 1 and 2 in Section 17-116 for
computing service retirement pensions shall apply in the computation of
disability retirement pensions.
(1) Each teacher retired or retiring after 10 years | ||
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(2) If the total service is 20 years and less than 25 | ||
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(3) If the total service is 20 years or more and the | ||
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(4) If the total service is 25 years or more | ||
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(5) If the total service is 20 years or more and the | ||
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(b) For disability retirement pensions, the following further
conditions shall apply:
(1) Written application shall be submitted within 3 | ||
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(2) The applicant shall submit to examination by | ||
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(3) Two physicians, appointed by the Board, shall | ||
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(c) Disability retirement pensions shall begin on the effective date of
resignation or the day following the close of the payroll period for
which credit was validated, whichever is later.
(Source: P.A. 90-32; eff. 6-27-97; 90-566, eff. 1-2-98; 91-887, eff. 7-6-00.)
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(40 ILCS 5/17-117.1) (from Ch. 108 1/2, par. 17-117.1)
Sec. 17-117.1. Duty disability. A teacher who becomes wholly and
presumably permanently incapacitated for duty while under age
65 as the proximate result of injuries sustained or a hazardous
condition encountered in the performance and within the scope of his
duties, if such injury or hazard was not the result of his own
negligence, shall be entitled to a duty disability benefit, provided:
(1) application for the benefit is made to the Board | ||
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(2) certification is received from 2 or more | ||
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(3) the teacher provides the Board with a copy of the | ||
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The benefit shall be payable during disability and shall be 75% of
the salary in effect at date of disability, payable until the teacher's
attainment of age 65. At such time if disability still exists, the
teacher shall become entitled to a service retirement pension.
Creditable service shall accrue during the period the disability benefit
is payable.
Before any action is taken by the Board on an application for a
duty
disability benefit, the teacher shall file a claim with the Illinois Workers' Compensation
Commission to establish that the disability was incurred while the
teacher was acting within the scope of and in the course of his duties
under the terms of the Workers' Compensation or Occupational Diseases
Acts, whichever may be applicable. The benefit shall be payable after a
finding by the Commission that the claim was compensable under either of
the aforesaid Acts; but if such finding is appealed the benefit shall be
payable only upon affirmance of the Commission's finding. After the
teacher has made timely application for a duty disability benefit
supported by the certificate of two or more physicians, he shall be
entitled to a disability retirement pension provided in Section 17-117
of this Act until such time as the Illinois Workers' Compensation Commission award finding
that his disability is duty-connected as provided in this Section
becomes final.
Any amounts provided for the teacher under such Acts shall be applied
as an offset to the duty disability benefit payable hereunder in such
manner as may be prescribed by the rules of the Board.
(Source: P.A. 93-721, eff. 1-1-05.)
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(40 ILCS 5/17-118) (from Ch. 108 1/2, par. 17-118)
Sec. 17-118.
Disability pension administration.
A disability
pensioner may be required to submit to an examination periodically by a
physician or physicians appointed by the Board. The purpose of
the
examination is to establish whether the disability still exists and to
determine whether the person is still incapacitated for teaching service
or service as an employee of the Board. The Board
may require disability
pensioners to submit evidence of the continued existence of the
disability. The Board may also employ investigative services to
determine whether such pensioners are employed elsewhere as teachers or
to establish whether they are still disabled.
The Board shall cancel a disability pension upon evidence that
a
pensioner is no longer incapacitated for teaching or service as an
employee of the Board. However, if a pensioner has attained age
55 and
has 20 or more years of service, the pension shall not be cancelled
unless he is re-employed as a teacher or as a pensioner-substitute. If a
disability pensioner is re-employed as a teacher or
pensioner-substitute, the pension shall be cancelled on the first day of
re-employment. The pensioner shall reimburse the Fund for pension
payments received after the date of re-employment (if any), plus 5%
interest compounded annually beginning one year after the Fund's
notification of the cancellation and indebtedness. Upon cancellation of
a disability pension, unless such person re-enters service and becomes a
contributor, a refund shall be payable of the excess, if any, of the
refundable contributions paid by him over the amount
paid in disability
pension.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
Sec. 17-119.
Automatic annual increase in pension.
Each teacher
retiring on or after September 1, 1959, is entitled to the annual
increase in pension, defined herein, while he is receiving a
pension from the Fund.
1. The term "base pension" means a service retirement or disability
retirement pension in the amount fixed and payable at the date of
retirement of a teacher.
2. The annual increase in pension shall be at the rate of 1 1/2% of
base pension. This increase shall first occur in January of the year
next following the first anniversary of retirement. At such time the
Fund shall pay the pro rata part of the increase for the period
from the
first anniversary date to the date of the first increase in
pension. Beginning January 1, 1972, the rate of annual increase in
pension shall be 2% of the base pension. Beginning January 1, 1979, the
rate of annual increase in pension shall be 3% of the base pension.
Beginning January 1, 1990, all automatic annual increases payable under
this Section shall be calculated as a percentage of the total pension
payable at the time of the increase, including all increases previously
granted under this Article, notwithstanding Section 17-157.
3. An increase in pension shall be granted only if the retired
teacher is age 60 or over. If the teacher attains age 60 after
retirement, the increase in pension shall begin in January of the
year following the 61st birthday. At such time the Fund also shall
pay
the pro rata part of the increase from the 61st birthday to the date of
first increase in pension.
In addition to other increases which may be provided by this Section, on
January 1, 1981 any teacher who was receiving a retirement pension on or
before January 1, 1971 shall have his retirement pension then being paid
increased $1 per month for each year of creditable service. On January
1, 1982, any teacher whose retirement pension began on or before January 1,
1977, shall have his retirement pension then being paid increased $1 per
month for each year of creditable service.
On January 1, 1987, any teacher whose retirement pension began
on or before January 1, 1977, shall have the monthly retirement pension
increased by an amount equal to 8¢ per year of creditable service times the
number of years that have elapsed since the retirement pension began.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-119.1)
Sec. 17-119.1.
Optional increase in retirement annuity.
(a) A member of the Fund may qualify for the augmented rate under
subdivision (b)(3) of Section 17-116 for all years of creditable service
earned before July 1, 1998 by making the optional contribution specified in
subsection (b); except that a member who retires on or after July 1, 1998
with at least 30 years of creditable service at retirement qualifies for the
augmented rate without making any contribution under subsection (b). Any
member who retires on or after July 1, 1998 and before the effective date of
this amendatory Act of the 92nd General Assembly with at least 30 years of
creditable service shall be paid a lump sum equal to the amount he or she would
have received under the augmented rate minus the amount he or she actually
received. A member may not elect to qualify for the augmented rate for only
a portion of his or her creditable service earned before July 1, 1998.
(b) The contribution shall be an amount equal to 1.0% of the member's
highest salary rate in the 4 consecutive school years immediately prior to but
not including the school year in which the application occurs, multiplied by
the number of years of creditable service earned by the member before July 1,
1998 or 20, whichever is less. This contribution shall be reduced by 1.0% of
that salary rate for every 3 full years of creditable service earned by the
member after June 30, 1998. The contribution shall be further reduced at
the rate of 25% of the contribution (as reduced for service after June 30,
1998) for each year of the member's total creditable service in excess of 34
years. The contribution shall not in any event exceed 20% of that salary
rate.
The member shall pay to the Fund the amount of the contribution as
calculated at the time of application under this Section. The amount of the
contribution determined under this subsection shall be recalculated at the time
of retirement, and if the Fund determines that the amount paid by the member
exceeds the recalculated amount, the Fund shall refund the difference to the
member with regular interest from the date of payment to the date of refund.
The contribution required by this subsection shall be paid in one of the
following ways or in a combination of the following ways that does not extend
over more than 5 years:
(i) in a lump sum on or before the date of retirement;
(ii) in substantially equal installments over a | ||
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(iii) in substantially equal monthly installments | ||
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(c) If the member fails to make the full contribution under this Section
in a timely fashion, the payments made under this Section shall be refunded
to the member, without interest. If the member (including a member who has
become an annuitant) dies before making the full
contribution, the payments made under this Section shall be refunded to the
member's designated beneficiary if there is no survivor's or children's
pension benefit payable. If there is a survivor's or children's benefit
payable, then all payments made under this Section shall be retained by the
Fund and all such survivor's or children's benefits payable shall be calculated
as if all contributions required under this Section have been paid in full.
(d) For purposes of this Section and subsection (b) of Section
17-116, optional creditable service established by a member shall be deemed to
have been earned at the time of the employment or other qualifying event upon
which the service is based, rather than at the time the credit was established
in this Fund.
(e) The contributions required under this Section are the responsibility of
the teacher and not the teacher's employer. However, an employer of teachers
may, after the effective date of this amendatory Act of 1998,
specifically agree, through collective bargaining or otherwise, to make the
contributions required by this Section on behalf of those teachers.
(Source: P.A. 91-17, eff. 6-4-99; 92-416, eff. 8-17-01; 92-599, eff. 6-28-02;
92-651, eff. 7-11-02.)
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(40 ILCS 5/17-120) (from Ch. 108 1/2, par. 17-120)
Sec. 17-120.
Reversionary pension.
Any contributor, at any
time prior to retirement on a service
retirement pension, may exercise an option of taking a lesser amount of
service retirement pension and providing with the remainder of his equity,
determined on an actuarial equivalent basis, a reversionary pension benefit
for any person named in a written designation filed by the contributor with
the Board, provided that the pension resulting from such election
is not
less than $40 per month, or more than the reduced pension payable after the
exercise of the option. If the reduced pension to the retired teacher is
less than that provided for a beneficiary, whether or not the aforesaid
minimum amount is payable, the election shall be void.
The pension to a beneficiary shall begin on the first day of the month
next following the month in which the retired teacher dies.
If the beneficiary survives the date of retirement of the teacher, but does
not survive the retired teacher, no reversionary pensions shall be payable,
and the teacher's service pension shall be restored
to the full service pension amount beginning on the first day of the month next
following the month in which the beneficiary dies or on the effective date
of this amendatory Act of 1997, whichever occurs later.
If the beneficiary dies after the election but before the
retirement of the teacher, the election shall be void. No change shall be
permitted in the written designation filed with the Board.
In the case of a reversionary annuity elected on or after January 1,
1984, no reversionary annuity shall be paid if the teacher dies before the
expiration of 730 days from the date that a written designation was filed
with the Board, even though the teacher was receiving a reduced
annuity.
Sections 1-103.1 and 17-157 do not apply to the changes made to this
Section by this amendatory Act of 1997.
(Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-121) (from Ch. 108 1/2, par. 17-121)
Sec. 17-121.
Survivor's pensions - Eligibility.
(a) A surviving spouse of a teacher shall be entitled to a survivor's
pension only if the surviving spouse was married to the teacher for at least one year immediately prior to
the teacher's death.
The changes made to this subsection (a) by this amendatory Act of the 92nd
General Assembly apply (i) only to the surviving spouse of a person who dies on
or after the effective date of this amendatory Act, and only if the amount of
any refund of contributions for survivor's pension is repaid with interest in
accordance with subsection (f), and (ii) notwithstanding Section 17-157 and
without regard to whether the deceased person was in service on or after the
effective date of this amendatory Act.
(b) If the surviving spouse is under age 50 and there are no eligible
minor children born to or legally adopted by the contributor and his or her
surviving spouse, payment of the survivor's pension shall begin when the
surviving spouse attains age 50.
(c) Beginning January 1, 2003, the remarriage of a surviving spouse at
any age does not terminate his or her survivor's pension.
A surviving spouse whose survivor's pension (or expectation of a survivor's
pension upon attainment of age 50) was terminated before January 1, 2003 due
to remarriage and who applies for reinstatement of that pension and repays the
amount of any refund of contributions for survivor's pension with interest in
accordance with subsection (f) shall be entitled to have the survivor's pension
(or
expectation of a survivor's pension upon attainment of age 50) reinstated.
The reinstated pension shall begin to accrue on the first day of the month
following the month in which the application and repayment, if any, are
received by the Fund, but in no event sooner than January 1, 2003 and, if
subsection (b) applies, no sooner than upon attainment of age 50. The
reinstated pension shall include any one-time or annual increases in the
survivor's pension received prior to the date of termination, but not any
increases that would otherwise have accrued from the date of termination to
the date of reinstatement.
This subsection (c) applies notwithstanding Section 17-157 and without
regard to whether the deceased teacher was in service on or after the
effective date of this amendatory Act of the 92nd General Assembly.
(d) Except as provided in subsection (c), remarriage of the surviving
spouse prior to September 1, 1983 while in receipt of a survivor's pension
shall permanently terminate payment thereof, regardless of any subsequent
change in marital status; however, beginning September 1, 1983, remarriage
of a surviving spouse after attainment of age 55 shall not terminate the
survivor's pension.
A surviving spouse whose pension was terminated on or after September
1, 1983 due to remarriage after attainment of age 55, and who applies for
reinstatement of that pension before January 1, 1990, shall be entitled to
have the pension reinstated effective January 1, 1990.
(e) A surviving spouse of a member or annuitant under this Fund who is
also a dependent beneficiary under the provisions of Section 16-140 is eligible
for a reciprocal survivor's pension, provided that any refund of survivor's
pension contributions is repaid to the Fund and application is made within 30
days after the effective date of this amendatory Act of the 92nd General
Assembly.
(f) If a refund of contributions for survivor's pension has been paid, a
person choosing to establish or reestablish the right to receive a survivor's
pension pursuant to the changes made to this Section by this amendatory Act of
the 92nd General Assembly must first repay to the Fund the amount of the refund
of contributions for survivor's pension, together with interest thereon at the
rate of 5% per year, compounded annually, from the date of the refund to the
date of repayment.
(Source: P.A. 92-416, eff. 8-17-01; 92-599, eff. 6-28-02.)
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(40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
Sec. 17-122.
Survivor's and children's pensions - Amount.
Upon the
death of a teacher who has completed at least 1 1/2 years of
contributing service with either this Fund or the State Universities
Retirement System or the Teachers' Retirement System of the State of
Illinois, provided his death occurred while (a) in active service
covered by the Fund or during his first 18 months of continuous
employment without a break in service under any other participating
system as defined in the Illinois Retirement Systems Reciprocal Act
except the State Universities Retirement System and the Teachers'
Retirement System of the State of Illinois, (b) on a creditable leave of
absence, (c) on a noncreditable leave of absence of no more than one
year, or (d) a pension was deferred or pending provided the teacher had
at least 10 years of validated service credit, or upon the death of a
pensioner otherwise qualified for such benefit, the surviving spouse and
unmarried minor children of the deceased teacher under age 18 shall be
entitled to pensions, under the conditions stated hereinafter. Such
survivor's and children's pensions shall be based on the average of the
4 highest consecutive years of salary in the last 10 years of service or
on the average salary for total service, if total service has been less
than 4 years, according to the following percentages:
30% of average salary or 50% of the retirement pension earned by the
teacher, whichever is larger, subject to the prescribed maximum monthly
payment, for a surviving spouse alone on attainment of age 50;
60% of average salary for a surviving spouse and eligible minor
children of the deceased teacher.
If no eligible spouse survives, or the surviving spouse remarries, or
the parent of the children of the deceased member is otherwise
ineligible for a survivor's pension, a children's pension for eligible
minor children under age 18 shall be paid to their parent or legal
guardian for their benefit according to the following percentages:
30% of average salary for one child;
60% of average salary for 2 or more children.
On January 1, 1981, any survivor or child who was receiving a survivor's
or children's pension on or before January 1, 1971, shall have his survivor's
or children's pension then being paid increased by 1% for each full year
which has elapsed from the date the pension began. On January 1, 1982,
any survivor or child whose pension began after January 1, 1971, but before
January 1, 1981, shall have his survivor's or children's pension then being
paid increased 1% for each full year which has elapsed from the date the
pension began. On January 1, 1987, any survivor or child whose pension began
on or before January 1, 1977, shall have the monthly survivor's or
children's pension increased by $1 for each full year which has elapsed
since the pension began.
Beginning January 1, 1990, every survivor's and children's pension shall be
increased (1) on each January 1 occurring on or after the commencement of the
pension if the deceased teacher died while receiving a retirement pension, or
(2) in other cases, on each January 1 occurring on or after the first
anniversary of the commencement of the pension, by an amount equal to 3% of the
current amount of the pension, including all increases previously granted under
this Article, notwithstanding Section 17-157. Such increases shall apply
without regard to whether the deceased teacher was in service on or after the
effective date of this amendatory Act of 1991, but shall not accrue for any
period prior to January 1, 1990.
Subject to the minimum established below, the maximum amount of
pension for a surviving spouse alone or one
minor child shall be $400 per month, and the maximum combined pensions for
a surviving spouse and children of the deceased teacher shall be $600
per month, with individual pensions adjusted for all beneficiaries
pro rata to conform with this limitation. If proration is unnecessary
the minimum survivor's and children's pensions shall be $40 per month. The
minimum total survivor's and children's pension payable upon the death of a
contributor or annuitant which occurs after December 31, 1986, shall be 50% of
the earned retirement pension of such contributor or annuitant, calculated
without early retirement discount in the case of death in service.
On death after retirement, the total survivor's and children's
pensions shall not exceed the monthly retirement or disability pension
paid to the deceased retirant. Survivor's and children's benefits described
in this Section shall apply to all service and disability pensioners eligible
for a pension as of July 1, 1981.
(Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-123) (from Ch. 108 1/2, par. 17-123)
Sec. 17-123.
Death benefits - Death in service.
If a teacher dies (a) in
service, (b) after resignation or (c) after retirement but before receiving
any pension payment, his or her estate shall be paid a refund of the
amounts he or she contributed to the Fund less (1) any former refund that
has not been repaid, (2) the amount contributed for a survivor's pension in
the event such pension is payable under Sections 17-121 and 17-122 and (3) pension payments received; but if a written
direction, signed by the contributor before an officer authorized to take
acknowledgments and stating that the refund shall be paid to named
beneficiaries, was filed with the Board prior to his or her death, the
refund shall be paid to such named beneficiaries. If any of several named
beneficiaries does not survive the contributor and no directive was furnished
by the member to cover this contingency, the deceased beneficiary's share of
the refund shall be paid to the estate of the
contributor.
In addition to the payment provided in the foregoing paragraph, if
such teacher has received service credit within 13 calendar months of
the date of death or was on a sick leave authorized by the Employer
at the time of death, and if no other pensions or benefits
were payable under the provisions of this Article or any other
participating system, as defined in the Illinois Retirement Systems
Reciprocal Act, except a refund of contributions or a survivor's pension,
there shall be paid a single payment death benefit. For a teacher who
dies on or after the effective date of this amendatory Act of 1991, this
benefit shall be equal to the last month's base rate of salary, subject
to the limitations and conditions set forth in this Article, for each
year of validated service, not to exceed 6 times such salary, or $10,000,
whichever is less. The single payment death benefit shall be paid in the
manner prescribed for a refund of contributions to the Fund.
Death benefits shall be paid only on written application to the
Board.
(Source: P.A. 90-566, eff. 1-2-98; 91-357, eff. 7-29-99.)
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(40 ILCS 5/17-124) (from Ch. 108 1/2, par. 17-124)
Sec. 17-124.
Death Benefits - Death on pension.
On written application to the Board, there shall be paid to the
estate of a deceased teacher-pensioner pension payments, accrued,
temporarily withheld or represented by checks uncashed at the date of
his death and the excess, if any, of an amount equal to his refundable
contributions for service or disability retirement pension over pension
to the date of death; provided, that if there be filed with the Board
prior to the death of the pensioner his written direction, signed and
acknowledged before an officer authorized to take acknowledgments, that
such payments be paid to designated beneficiaries, they shall be so paid
on written application therefor to the Board. If none of several
named
beneficiaries survives the pensioner and no directive was furnished by
the member to cover this contingency, the deceased beneficiary's share
shall be paid to the estate of the pensioner.
If a reversionary pension is payable upon death of a pensioner, the
determination and payment of any refund of contributions payable under
this Section shall be made upon death of the reversionary pensioner. At
such time a refund of contributions less (1) the amount contributed for
annual increases in pension and (2) total pension payments to the
teacher-pensioner and survivor shall be paid in the manner provided in
this Section to the designated beneficiaries, or estate of the deceased
survivor.
If a pension is payable to a surviving spouse and/or minor children
upon death of a pensioner, the determination of any refund of
contributions payable under this Section shall be made upon death of the
survivor and marriage or attainment of age 18 of minor children. At that
time a refund of contributions for retirement and survivors' and
children's pensions less total pension payments to teacher-pensioner,
survivor and minor children shall be paid in the manner provided in this
Section to the designated beneficiaries, or estate of the deceased
survivor.
If eligible beneficiaries for survivors' or children's benefits
existed at the time of a pensioner's retirement but not on the date of
his death thereafter, the excess of total contributions for retirement
and survivors' and children's pensions over pensions paid shall be
determined upon death of the pensioner and paid in the manner provided
in this Section to the designated beneficiaries, or estate of the
deceased teacher-pensioner.
Reversionary or survivor's pension payments accrued, temporarily
withheld, or represented by uncashed checks to the date of death shall
be paid to the reversionary pensioner's or survivor's designated
beneficiaries, or estate in the manner provided in this Section.
On death of a retired teacher whose death occurs on
or after the effective date of this amendatory Act of 1991, there shall
be payable a lump sum
death benefit equal to 6 times the teacher's salary rate for his last
month of service or $10,000, whichever is less, upon death during the
first year on pension minus 1/5 of the death benefit, as defined herein,
for each year or fraction thereof on pension after the first full year,
to a minimum of $5,000.
Notwithstanding Section 17-157, the changes made in this Section and
Section 17-123 by this amendatory Act of 1991 shall apply to teachers dying
on or after the effective date of this amendatory Act of 1991 without
regard to whether service terminated prior to that date.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-125) (from Ch. 108 1/2, par. 17-125)
Sec. 17-125. Refund of contributions. Upon certification by the Employer of a member's resignation or termination prior to completion of the
minimum term of service required to establish eligibility for a pension
and on written application therefor, a teacher shall be paid a refund of
all the amounts the member has contributed to the Fund, less any former
refund
that has not been repaid.
Upon certification by the Employer of the member's resignation or termination
after completion of the minimum
term of service required to establish eligibility for a pension and on
written application therefor, a teacher shall be paid a refund of all
the amounts the member has contributed, less (1) any former refund that has not
been repaid, and (2) pension payments received, provided the member has executed
and delivered to the Board a written acknowledgment of forfeiture of all service credit and rights to pension payments. Thereupon, the member shall have no further interest in or claim against
the Fund.
A request for refund shall
be considered valid if the member's withdrawal from service occurred at least 2
months prior to the filing of such request.
Upon retirement of a teacher either on immediate or deferred pension,
if the teacher is not then married, or if the member's spouse or children do not
meet the qualifying conditions for a survivor's or children's pension,
the total amount contributed by the member or otherwise paid by deductions from
salary for survivor's pension, shall be refunded to the member, without
interest. No survivor's or children's pension rights shall be effective
thereafter in such a case.
During a teacher's term of service, no refund is payable except
contributions made in error.
(Source: P.A. 101-263, eff. 8-9-19.)
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(40 ILCS 5/17-126) (from Ch. 108 1/2, par. 17-126)
Sec. 17-126.
Repayment of refund.
If any person who has received a refund
is reemployed by an Employer and again becomes a contributor for a period of at
least 2
years, or has established credit of at least 2 years of service
subsequent to the date of such refund, in a retirement system which has
subscribed to the "Retirement Systems Reciprocal Act" and is a contributor
thereto, he may repay to the Fund the amount he received as a
refund,
together with interest thereon at 5% per annum compounded annually from
the time the refund
was paid to the date of repayment.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-127) (from Ch. 108 1/2, par. 17-127)
Sec. 17-127. Financing; revenues for the Fund.
(a) The revenues for the Fund shall consist of: (1) amounts paid into
the Fund by contributors thereto and from employer contributions and State
appropriations in accordance with this Article; (2) amounts contributed to the
Fund by an Employer; (3) amounts contributed to the Fund pursuant to any law
now in force or hereafter to be enacted; (4) contributions from any other
source; and (5) the earnings on investments.
(b) The General Assembly finds that for many years the State has
contributed to the Fund an annual amount that is between 20% and 30% of the
amount of the annual State contribution to the Article 16 retirement system,
and the General Assembly declares that it is its goal and intention to continue
this level of contribution to the Fund in the future.
(c) Beginning in State fiscal year 1999, the State shall include in its annual
contribution to the Fund an additional amount equal to 0.544% of the Fund's
total teacher payroll; except that this additional contribution need not be
made in a fiscal year if the Board has certified in the previous fiscal year
that the Fund is at least 90% funded, based on actuarial determinations. These
additional State contributions are intended to offset a portion of the cost to
the Fund of the increases in retirement benefits resulting from this amendatory
Act of 1998.
(d) In addition to any other contribution required under this Article, including the contribution required under subsection (c), the State shall contribute to the Fund the following amounts: (1) For State fiscal year 2018, the State shall | ||
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(2) Beginning in State fiscal year 2019, the State | ||
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(e) The Board shall determine the amount of State contributions required for each fiscal year on the basis of the actuarial tables and other assumptions adopted by the Board and the recommendations of the actuary. On or before November 1 of each year, beginning November 1, 2017, the Board shall submit to the State Actuary, the Governor, and the General Assembly a proposed certification of the amount of the required State contribution to the Fund for the next fiscal year, along with all of the actuarial assumptions, calculations, and data upon which that proposed certification is based. On or before January 1 of each year, beginning January 1,
2018, the State Actuary shall issue a preliminary report
concerning the proposed certification and identifying, if
necessary, recommended changes in actuarial assumptions that
the Board must consider before finalizing its certification of
the required State contributions. (f) On or before January 15, 2018 and each January 15 thereafter, the Board shall certify to the Governor and the
General Assembly the amount of the required State contribution
for the next fiscal year. The certification shall include a
copy of the actuarial recommendations upon which it is based
and shall specifically identify the Fund's projected employer
normal cost for that fiscal year. The Board's certification
must note any deviations from the State Actuary's recommended
changes, the reason or reasons for not following the State
Actuary's recommended changes, and the fiscal impact of not
following the State Actuary's recommended changes on the
required State contribution. For the purposes of this Article, including issuing vouchers, and for the purposes of subsection (h) of Section 1.1 of the State Pension Funds Continuing Appropriation Act, the State contribution specified for State fiscal year 2018 shall be deemed to have been certified, by operation of law and without official action by the Board or the State Actuary, in the amount provided in subsection (c) and subsection (d) of this Section. (g) For State fiscal year 2018, the State Board of Education shall submit vouchers, as directed by the Board, for payment of State contributions to the Fund for the required annual State contribution under subsection (d) of this Section. These vouchers shall be paid by the State Comptroller and Treasurer by warrants drawn on the amount appropriated to the State Board of Education from the Common School Fund in Section 5 of Article 97 of Public Act 100-21. If State appropriations for State fiscal year 2018 are less than the amount lawfully vouchered under this subsection, the difference shall be paid from the Common School Fund under the continuing appropriation authority provided in Section 1.1 of the State Pension Funds Continuing Appropriation Act. (h) For State fiscal year 2018, the Board shall submit vouchers for the payment of State contributions to the Fund for the required annual State contribution under subsection (c) of this Section. Beginning in State fiscal year 2019, the Board shall submit vouchers for payment of State contributions to the Fund for the required annual State contribution under subsections (c) and (d) of this Section. These vouchers shall be paid by the State Comptroller and Treasurer by warrants drawn on the funds appropriated to the Fund for that fiscal year. If State appropriations to the Fund for the applicable fiscal year are less than the amount lawfully vouchered under this subsection, the difference shall be paid from the Common School Fund under the continuing appropriation authority provided in Section 1.1 of the State Pension Funds Continuing Appropriation Act. (Source: P.A. 100-465, eff. 8-31-17.)
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(40 ILCS 5/17-127.1) (from Ch. 108 1/2, par. 17-127.1)
Sec. 17-127.1.
Special revenues.
Donations, gifts, and legacies received
by the fund shall be held and accounted
for as the Board so provides by appropriate
resolution. Nothing
in this Article shall be so construed as to prevent the
Board from directing such resources to be
used for memorial or other commemorative purposes
honoring the grantors, while alive or posthumously, of such special revenues.
(Source: P.A. 90-566, eff. 1-2-98.)
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(40 ILCS 5/17-127.2)
Sec. 17-127.2.
Additional contributions by employer of teachers.
Beginning July 1, 1998, the employer of a teacher shall pay to the
Fund an employer contribution computed as follows:
(1) Beginning July 1, 1998 through June 30, 1999, the | ||
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(2) Beginning July 1, 1999 and thereafter, the | ||
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The employer may pay these employer contributions out of any source of funding
available for that purpose and shall forward the contributions to the Fund on
the schedule established for the payment of member contributions.
These employer contributions need not be made in a fiscal year if the Board
has certified in the previous fiscal year that the Fund is at least 90% funded,
based on actuarial determinations.
These employer contributions are intended to offset a portion of the cost to
the Fund of the increases in retirement benefits resulting from Public Act
90-582.
(Source: P.A. 90-582, eff. 5-27-98; 91-357, eff. 7-29-99.)
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