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Illinois Compiled Statutes
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PENSIONS (40 ILCS 5/) Illinois Pension Code. 40 ILCS 5/14-110 (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110) (Text of Section from P.A. 102-813 and 103-34) Sec. 14-110. Alternative retirement annuity. (a) Any member who has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55, and any member who has withdrawn from service with not less than 25 years of eligible creditable service and has attained age 50, regardless of whether the attainment of either of the specified ages occurs while the member is still in service, shall be entitled to receive at the option of the member, in lieu of the regular or minimum retirement annuity, a retirement annuity computed as follows: (i) for periods of service as a noncovered employee: | | if retirement occurs on or after January 1, 2001, 3% of final average compensation for each year of creditable service; if retirement occurs before January 1, 2001, 2 1/4% of final average compensation for each of the first 10 years of creditable service, 2 1/2% for each year above 10 years to and including 20 years of creditable service, and 2 3/4% for each year of creditable service above 20 years; and
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| (ii) for periods of eligible creditable service as a
| | covered employee: if retirement occurs on or after January 1, 2001, 2.5% of final average compensation for each year of creditable service; if retirement occurs before January 1, 2001, 1.67% of final average compensation for each of the first 10 years of such service, 1.90% for each of the next 10 years of such service, 2.10% for each year of such service in excess of 20 but not exceeding 30, and 2.30% for each year in excess of 30.
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| Such annuity shall be subject to a maximum of 75% of final average compensation if retirement occurs before January 1, 2001 or to a maximum of 80% of final average compensation if retirement occurs on or after January 1, 2001.
These rates shall not be applicable to any service performed by a member as a covered employee which is not eligible creditable service. Service as a covered employee which is not eligible creditable service shall be subject to the rates and provisions of Section 14-108.
(b) For the purpose of this Section, "eligible creditable service" means creditable service resulting from service in one or more of the following positions:
(1) State policeman;
(2) fire fighter in the fire protection service of a
| | (3) air pilot;
(4) special agent;
(5) investigator for the Secretary of State;
(6) conservation police officer;
(7) investigator for the Department of Revenue or the
| | (8) security employee of the Department of Human
| | (9) Central Management Services security police
| | (10) security employee of the Department of
| | Corrections or the Department of Juvenile Justice;
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| (11) dangerous drugs investigator;
(12) investigator for the Illinois State Police;
(13) investigator for the Office of the Attorney
| | (14) controlled substance inspector;
(15) investigator for the Office of the State's
| | Attorneys Appellate Prosecutor;
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| (16) Commerce Commission police officer;
(17) arson investigator;
(18) State highway maintenance worker;
(19) security employee of the Department of
| | Innovation and Technology; or
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| (20) transferred employee.
A person employed in one of the positions specified in this subsection is entitled to eligible creditable service for service credit earned under this Article while undergoing the basic police training course approved by the Illinois Law Enforcement Training Standards Board, if completion of that training is required of persons serving in that position. For the purposes of this Code, service during the required basic police training course shall be deemed performance of the duties of the specified position, even though the person is not a sworn peace officer at the time of the training.
A person under paragraph (20) is entitled to eligible creditable service for service credit earned under this Article on and after his or her transfer by Executive Order No. 2003-10, Executive Order No. 2004-2, or Executive Order No. 2016-1.
(c) For the purposes of this Section:
(1) The term "State policeman" includes any title or
| | position in the Illinois State Police that is held by an individual employed under the Illinois State Police Act.
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| (2) The term "fire fighter in the fire protection
| | service of a department" includes all officers in such fire protection service including fire chiefs and assistant fire chiefs.
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| (3) The term "air pilot" includes any employee whose
| | official job description on file in the Department of Central Management Services, or in the department by which he is employed if that department is not covered by the Personnel Code, states that his principal duty is the operation of aircraft, and who possesses a pilot's license; however, the change in this definition made by Public Act 83-842 shall not operate to exclude any noncovered employee who was an "air pilot" for the purposes of this Section on January 1, 1984.
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| (4) The term "special agent" means any person who by
| | reason of employment by the Division of Narcotic Control, the Bureau of Investigation or, after July 1, 1977, the Division of Criminal Investigation, the Division of Internal Investigation, the Division of Operations, the Division of Patrol, or any other Division or organizational entity in the Illinois State Police is vested by law with duties to maintain public order, investigate violations of the criminal law of this State, enforce the laws of this State, make arrests and recover property. The term "special agent" includes any title or position in the Illinois State Police that is held by an individual employed under the Illinois State Police Act.
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| (5) The term "investigator for the Secretary of
| | State" means any person employed by the Office of the Secretary of State and vested with such investigative duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
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| A person who became employed as an investigator for
| | the Secretary of State between January 1, 1967 and December 31, 1975, and who has served as such until attainment of age 60, either continuously or with a single break in service of not more than 3 years duration, which break terminated before January 1, 1976, shall be entitled to have his retirement annuity calculated in accordance with subsection (a), notwithstanding that he has less than 20 years of credit for such service.
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| (6) The term "Conservation Police Officer" means any
| | person employed by the Division of Law Enforcement of the Department of Natural Resources and vested with such law enforcement duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The term "Conservation Police Officer" includes the positions of Chief Conservation Police Administrator and Assistant Conservation Police Administrator.
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| (7) The term "investigator for the Department of
| | Revenue" means any person employed by the Department of Revenue and vested with such investigative duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
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| The term "investigator for the Illinois Gaming Board"
| | means any person employed as such by the Illinois Gaming Board and vested with such peace officer duties as render the person ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act.
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| (8) The term "security employee of the Department of
| | Human Services" means any person employed by the Department of Human Services who (i) is employed at the Chester Mental Health Center and has daily contact with the residents thereof, (ii) is employed within a security unit at a facility operated by the Department and has daily contact with the residents of the security unit, (iii) is employed at a facility operated by the Department that includes a security unit and is regularly scheduled to work at least 50% of his or her working hours within that security unit, or (iv) is a mental health police officer. "Mental health police officer" means any person employed by the Department of Human Services in a position pertaining to the Department's mental health and developmental disabilities functions who is vested with such law enforcement duties as render the person ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. "Security unit" means that portion of a facility that is devoted to the care, containment, and treatment of persons committed to the Department of Human Services as sexually violent persons, persons unfit to stand trial, or persons not guilty by reason of insanity. With respect to past employment, references to the Department of Human Services include its predecessor, the Department of Mental Health and Developmental Disabilities.
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| The changes made to this subdivision (c)(8) by Public
| | Act 92-14 apply to persons who retire on or after January 1, 2001, notwithstanding Section 1-103.1.
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| (9) "Central Management Services security police
| | officer" means any person employed by the Department of Central Management Services who is vested with such law enforcement duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
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| (10) For a member who first became an employee under
| | this Article before July 1, 2005, the term "security employee of the Department of Corrections or the Department of Juvenile Justice" means any employee of the Department of Corrections or the Department of Juvenile Justice or the former Department of Personnel, and any member or employee of the Prisoner Review Board, who has daily contact with inmates or youth by working within a correctional facility or Juvenile facility operated by the Department of Juvenile Justice or who is a parole officer or an employee who has direct contact with committed persons in the performance of his or her job duties. For a member who first becomes an employee under this Article on or after July 1, 2005, the term means an employee of the Department of Corrections or the Department of Juvenile Justice who is any of the following: (i) officially headquartered at a correctional facility or Juvenile facility operated by the Department of Juvenile Justice, (ii) a parole officer, (iii) a member of the apprehension unit, (iv) a member of the intelligence unit, (v) a member of the sort team, or (vi) an investigator.
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| (11) The term "dangerous drugs investigator" means
| | any person who is employed as such by the Department of Human Services.
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| (12) The term "investigator for the Illinois State
| | Police" means a person employed by the Illinois State Police who is vested under Section 4 of the Narcotic Control Division Abolition Act with such law enforcement powers as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
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| (13) "Investigator for the Office of the Attorney
| | General" means any person who is employed as such by the Office of the Attorney General and is vested with such investigative duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For the period before January 1, 1989, the term includes all persons who were employed as investigators by the Office of the Attorney General, without regard to social security status.
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| (14) "Controlled substance inspector" means any
| | person who is employed as such by the Department of Professional Regulation and is vested with such law enforcement duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. The term "controlled substance inspector" includes the Program Executive of Enforcement and the Assistant Program Executive of Enforcement.
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| (15) The term "investigator for the Office of the
| | State's Attorneys Appellate Prosecutor" means a person employed in that capacity on a full-time basis under the authority of Section 7.06 of the State's Attorneys Appellate Prosecutor's Act.
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| (16) "Commerce Commission police officer" means any
| | person employed by the Illinois Commerce Commission who is vested with such law enforcement duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act.
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| (17) "Arson investigator" means any person who is
| | employed as such by the Office of the State Fire Marshal and is vested with such law enforcement duties as render the person ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. A person who was employed as an arson investigator on January 1, 1995 and is no longer in service but not yet receiving a retirement annuity may convert his or her creditable service for employment as an arson investigator into eligible creditable service by paying to the System the difference between the employee contributions actually paid for that service and the amounts that would have been contributed if the applicant were contributing at the rate applicable to persons with the same social security status earning eligible creditable service on the date of application.
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| (18) The term "State highway maintenance worker"
| | means a person who is either of the following:
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| (i) A person employed on a full-time basis by the
| | Illinois Department of Transportation in the position of highway maintainer, highway maintenance lead worker, highway maintenance lead/lead worker, heavy construction equipment operator, power shovel operator, or bridge mechanic; and whose principal responsibility is to perform, on the roadway, the actual maintenance necessary to keep the highways that form a part of the State highway system in serviceable condition for vehicular traffic.
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| (ii) A person employed on a full-time basis by
| | the Illinois State Toll Highway Authority in the position of equipment operator/laborer H-4, equipment operator/laborer H-6, welder H-4, welder H-6, mechanical/electrical H-4, mechanical/electrical H-6, water/sewer H-4, water/sewer H-6, sign maker/hanger H-4, sign maker/hanger H-6, roadway lighting H-4, roadway lighting H-6, structural H-4, structural H-6, painter H-4, or painter H-6; and whose principal responsibility is to perform, on the roadway, the actual maintenance necessary to keep the Authority's tollways in serviceable condition for vehicular traffic.
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| (19) The term "security employee of the Department of
| | Innovation and Technology" means a person who was a security employee of the Department of Corrections or the Department of Juvenile Justice, was transferred to the Department of Innovation and Technology pursuant to Executive Order 2016-01, and continues to perform similar job functions under that Department.
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| (20) "Transferred employee" means an employee who was
| | transferred to the Department of Central Management Services by Executive Order No. 2003-10 or Executive Order No. 2004-2 or transferred to the Department of Innovation and Technology by Executive Order No. 2016-1, or both, and was entitled to eligible creditable service for services immediately preceding the transfer.
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| (d) A security employee of the Department of Corrections or the Department of Juvenile Justice, a security employee of the Department of Human Services who is not a mental health police officer, and a security employee of the Department of Innovation and Technology shall not be eligible for the alternative retirement annuity provided by this Section unless he or she meets the following minimum age and service requirements at the time of retirement:
(i) 25 years of eligible creditable service and age
| | (ii) beginning January 1, 1987, 25 years of eligible
| | creditable service and age 54, or 24 years of eligible creditable service and age 55; or
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| (iii) beginning January 1, 1988, 25 years of eligible
| | creditable service and age 53, or 23 years of eligible creditable service and age 55; or
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| (iv) beginning January 1, 1989, 25 years of eligible
| | creditable service and age 52, or 22 years of eligible creditable service and age 55; or
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| (v) beginning January 1, 1990, 25 years of eligible
| | creditable service and age 51, or 21 years of eligible creditable service and age 55; or
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| (vi) beginning January 1, 1991, 25 years of eligible
| | creditable service and age 50, or 20 years of eligible creditable service and age 55.
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| Persons who have service credit under Article 16 of this Code for service as a security employee of the Department of Corrections or the Department of Juvenile Justice, or the Department of Human Services in a position requiring certification as a teacher may count such service toward establishing their eligibility under the service requirements of this Section; but such service may be used only for establishing such eligibility, and not for the purpose of increasing or calculating any benefit.
(e) If a member enters military service while working in a position in which eligible creditable service may be earned, and returns to State service in the same or another such position, and fulfills in all other respects the conditions prescribed in this Article for credit for military service, such military service shall be credited as eligible creditable service for the purposes of the retirement annuity prescribed in this Section.
(f) For purposes of calculating retirement annuities under this Section, periods of service rendered after December 31, 1968 and before October 1, 1975 as a covered employee in the position of special agent, conservation police officer, mental health police officer, or investigator for the Secretary of State, shall be deemed to have been service as a noncovered employee, provided that the employee pays to the System prior to retirement an amount equal to (1) the difference between the employee contributions that would have been required for such service as a noncovered employee, and the amount of employee contributions actually paid, plus (2) if payment is made after July 31, 1987, regular interest on the amount specified in item (1) from the date of service to the date of payment.
For purposes of calculating retirement annuities under this Section, periods of service rendered after December 31, 1968 and before January 1, 1982 as a covered employee in the position of investigator for the Department of Revenue shall be deemed to have been service as a noncovered employee, provided that the employee pays to the System prior to retirement an amount equal to (1) the difference between the employee contributions that would have been required for such service as a noncovered employee, and the amount of employee contributions actually paid, plus (2) if payment is made after January 1, 1990, regular interest on the amount specified in item (1) from the date of service to the date of payment.
(g) A State policeman may elect, not later than January 1, 1990, to establish eligible creditable service for up to 10 years of his service as a policeman under Article 3, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.5, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State policeman may elect, not later than July 1, 1993, to establish eligible creditable service for up to 10 years of his service as a member of the County Police Department under Article 9, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 9-121.10 and the amounts that would have been contributed had those contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
(h) Subject to the limitation in subsection (i), a State policeman or investigator for the Secretary of State may elect to establish eligible creditable service for up to 12 years of his service as a policeman under Article 5, by filing a written election with the Board on or before January 31, 1992, and paying to the System by January 31, 1994 an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 5-236, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State policeman, conservation police officer, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 10 years of service as a sheriff's law enforcement employee under Article 7, by filing a written election with the Board on or before January 31, 1993, and paying to the System by January 31, 1994 an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 7-139.7, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State policeman, conservation police officer, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 5 years of service as a police officer under Article 3, a policeman under Article 5, a sheriff's law enforcement employee under Article 7, a member of the county police department under Article 9, or a police officer under Article 15 by filing a written election with the Board and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), an investigator for the Office of the Attorney General, or an investigator for the Department of Revenue, may elect to establish eligible creditable service for up to 5 years of service as a police officer under Article 3, a policeman under Article 5, a sheriff's law enforcement employee under Article 7, or a member of the county police department under Article 9 by filing a written election with the Board within 6 months after August 25, 2009 (the effective date of Public Act 96-745) and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State policeman, conservation police officer, investigator for the Office of the Attorney General, an investigator for the Department of Revenue, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties, or law enforcement officer employed on a full-time basis by a forest preserve district under Article 7, a county corrections officer, or a court services officer under Article 9, by filing a written election with the Board within 6 months after August 25, 2009 (the effective date of Public Act 96-745) and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 7-139.8 and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State policeman, arson investigator, or Commerce Commission police officer may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties under Article 7, a county corrections officer, a court services officer under Article 9, or a firefighter under Article 4 by filing a written election with the Board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a conservation police officer may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties under Article 7, a county corrections officer, or a court services officer under Article 9 by filing a written election with the Board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 7-139.8 and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.
Notwithstanding the limitation in subsection (i), a State policeman or conservation police officer may elect to convert service credit earned under this Article to eligible creditable service, as defined by this Section, by filing a written election with the board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee contributions originally paid for that service and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) the difference between the employer's normal cost of the credit prior to the conversion authorized by Public Act 102-210 and the employer's normal cost of the credit converted in accordance with Public Act 102-210, plus (iii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.
(i) The total amount of eligible creditable service established by any person under subsections (g), (h), (j), (k), (l), (l-5), and (o) of this Section shall not exceed 12 years.
(j) Subject to the limitation in subsection (i), an investigator for the Office of the State's Attorneys Appellate Prosecutor or a controlled substance inspector may elect to establish eligible creditable service for up to 10 years of his service as a policeman under Article 3 or a sheriff's law enforcement employee under Article 7, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (1) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6 or 7-139.8, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (2) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
(k) Subject to the limitation in subsection (i) of this Section, an alternative formula employee may elect to establish eligible creditable service for periods spent as a full-time law enforcement officer or full-time corrections officer employed by the federal government or by a state or local government located outside of Illinois, for which credit is not held in any other public employee pension fund or retirement system. To obtain this credit, the applicant must file a written application with the Board by March 31, 1998, accompanied by evidence of eligibility acceptable to the Board and payment of an amount to be determined by the Board, equal to (1) employee contributions for the credit being established, based upon the applicant's salary on the first day as an alternative formula employee after the employment for which credit is being established and the rates then applicable to alternative formula employees, plus (2) an amount determined by the Board to be the employer's normal cost of the benefits accrued for the credit being established, plus (3) regular interest on the amounts in items (1) and (2) from the first day as an alternative formula employee after the employment for which credit is being established to the date of payment.
(l) Subject to the limitation in subsection (i), a security employee of the Department of Corrections may elect, not later than July 1, 1998, to establish eligible creditable service for up to 10 years of his or her service as a policeman under Article 3, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.5, and the amounts that would have been contributed had such contributions been made at the rates applicable to security employees of the Department of Corrections, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
(l-5) Subject to the limitation in subsection (i) of this Section, a State policeman may elect to establish eligible creditable service for up to 5 years of service as a full-time law enforcement officer employed by the federal government or by a state or local government located outside of Illinois for which credit is not held in any other public employee pension fund or retirement system. To obtain this credit, the applicant must file a written application with the Board no later than 3 years after January 1, 2020 (the effective date of Public Act 101-610), accompanied by evidence of eligibility acceptable to the Board and payment of an amount to be determined by the Board, equal to (1) employee contributions for the credit being established, based upon the applicant's salary on the first day as an alternative formula employee after the employment for which credit is being established and the rates then applicable to alternative formula employees, plus (2) an amount determined by the Board to be the employer's normal cost of the benefits accrued for the credit being established, plus (3) regular interest on the amounts in items (1) and (2) from the first day as an alternative formula employee after the employment for which credit is being established to the date of payment.
(m) The amendatory changes to this Section made by Public Act 94-696 apply only to: (1) security employees of the Department of Juvenile Justice employed by the Department of Corrections before June 1, 2006 (the effective date of Public Act 94-696) and transferred to the Department of Juvenile Justice by Public Act 94-696; and (2) persons employed by the Department of Juvenile Justice on or after June 1, 2006 (the effective date of Public Act 94-696) who are required by subsection (b) of Section 3-2.5-15 of the Unified Code of Corrections to have any bachelor's or advanced degree from an accredited college or university or, in the case of persons who provide vocational training, who are required to have adequate knowledge in the skill for which they are providing the vocational training.
(n) A person employed in a position under subsection (b) of this Section who has purchased service credit under subsection (j) of Section 14-104 or subsection (b) of Section 14-105 in any other capacity under this Article may convert up to 5 years of that service credit into service credit covered under this Section by paying to the Fund an amount equal to (1) the additional employee contribution required under Section 14-133, plus (2) the additional employer contribution required under Section 14-131, plus (3) interest on items (1) and (2) at the actuarially assumed rate from the date of the service to the date of payment.
(o) Subject to the limitation in subsection (i), a conservation police officer, investigator for the Secretary of State, Commerce Commission police officer, investigator for the Department of Revenue or the Illinois Gaming Board, or arson investigator subject to subsection (g) of Section 1-160 may elect to convert up to 8 years of service credit established before January 1, 2020 (the effective date of Public Act 101-610) as a conservation police officer, investigator for the Secretary of State, Commerce Commission police officer, investigator for the Department of Revenue or the Illinois Gaming Board, or arson investigator under this Article into eligible creditable service by filing a written election with the Board no later than one year after January 1, 2020 (the effective date of Public Act 101-610), accompanied by payment of an amount to be determined by the Board equal to (i) the difference between the amount of the employee contributions actually paid for that service and the amount of the employee contributions that would have been paid had the employee contributions been made as a noncovered employee serving in a position in which eligible creditable service, as defined in this Section, may be earned, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21; 102-813, eff. 5-13-22; 103-34, eff. 1-1-24 .)
(Text of Section from P.A. 102-856 and 103-34)
Sec. 14-110. Alternative retirement annuity.
(a) Any member who has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55, and any member who has withdrawn from service with not less than 25 years of eligible creditable service and has attained age 50, regardless of whether the attainment of either of the specified ages occurs while the member is still in service, shall be entitled to receive at the option of the member, in lieu of the regular or minimum retirement annuity, a retirement annuity computed as follows:
(i) for periods of service as a noncovered employee:
| | if retirement occurs on or after January 1, 2001, 3% of final average compensation for each year of creditable service; if retirement occurs before January 1, 2001, 2 1/4% of final average compensation for each of the first 10 years of creditable service, 2 1/2% for each year above 10 years to and including 20 years of creditable service, and 2 3/4% for each year of creditable service above 20 years; and
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| (ii) for periods of eligible creditable service as a
| | covered employee: if retirement occurs on or after January 1, 2001, 2.5% of final average compensation for each year of creditable service; if retirement occurs before January 1, 2001, 1.67% of final average compensation for each of the first 10 years of such service, 1.90% for each of the next 10 years of such service, 2.10% for each year of such service in excess of 20 but not exceeding 30, and 2.30% for each year in excess of 30.
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| Such annuity shall be subject to a maximum of 75% of final average compensation if retirement occurs before January 1, 2001 or to a maximum of 80% of final average compensation if retirement occurs on or after January 1, 2001.
These rates shall not be applicable to any service performed by a member as a covered employee which is not eligible creditable service. Service as a covered employee which is not eligible creditable service shall be subject to the rates and provisions of Section 14-108.
(b) For the purpose of this Section, "eligible creditable service" means creditable service resulting from service in one or more of the following positions:
(1) State policeman;
(2) fire fighter in the fire protection service of a
| | (3) air pilot;
(4) special agent;
(5) investigator for the Secretary of State;
(6) conservation police officer;
(7) investigator for the Department of Revenue or the
| | (8) security employee of the Department of Human
| | (9) Central Management Services security police
| | (10) security employee of the Department of
| | Corrections or the Department of Juvenile Justice;
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| (11) dangerous drugs investigator;
(12) investigator for the Illinois State Police;
(13) investigator for the Office of the Attorney
| | (14) controlled substance inspector;
(15) investigator for the Office of the State's
| | Attorneys Appellate Prosecutor;
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| (16) Commerce Commission police officer;
(17) arson investigator;
(18) State highway maintenance worker;
(19) security employee of the Department of
| | Innovation and Technology; or
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| (20) transferred employee.
A person employed in one of the positions specified in this subsection is entitled to eligible creditable service for service credit earned under this Article while undergoing the basic police training course approved by the Illinois Law Enforcement Training Standards Board, if completion of that training is required of persons serving in that position. For the purposes of this Code, service during the required basic police training course shall be deemed performance of the duties of the specified position, even though the person is not a sworn peace officer at the time of the training.
A person under paragraph (20) is entitled to eligible creditable service for service credit earned under this Article on and after his or her transfer by Executive Order No. 2003-10, Executive Order No. 2004-2, or Executive Order No. 2016-1.
(c) For the purposes of this Section:
(1) The term "State policeman" includes any title or
| | position in the Illinois State Police that is held by an individual employed under the Illinois State Police Act.
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| (2) The term "fire fighter in the fire protection
| | service of a department" includes all officers in such fire protection service including fire chiefs and assistant fire chiefs.
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| (3) The term "air pilot" includes any employee whose
| | official job description on file in the Department of Central Management Services, or in the department by which he is employed if that department is not covered by the Personnel Code, states that his principal duty is the operation of aircraft, and who possesses a pilot's license; however, the change in this definition made by Public Act 83-842 shall not operate to exclude any noncovered employee who was an "air pilot" for the purposes of this Section on January 1, 1984.
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| (4) The term "special agent" means any person who by
| | reason of employment by the Division of Narcotic Control, the Bureau of Investigation or, after July 1, 1977, the Division of Criminal Investigation, the Division of Internal Investigation, the Division of Operations, the Division of Patrol, or any other Division or organizational entity in the Illinois State Police is vested by law with duties to maintain public order, investigate violations of the criminal law of this State, enforce the laws of this State, make arrests and recover property. The term "special agent" includes any title or position in the Illinois State Police that is held by an individual employed under the Illinois State Police Act.
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| (5) The term "investigator for the Secretary of
| | State" means any person employed by the Office of the Secretary of State and vested with such investigative duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
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| A person who became employed as an investigator for
| | the Secretary of State between January 1, 1967 and December 31, 1975, and who has served as such until attainment of age 60, either continuously or with a single break in service of not more than 3 years duration, which break terminated before January 1, 1976, shall be entitled to have his retirement annuity calculated in accordance with subsection (a), notwithstanding that he has less than 20 years of credit for such service.
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| (6) The term "Conservation Police Officer" means any
| | person employed by the Division of Law Enforcement of the Department of Natural Resources and vested with such law enforcement duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The term "Conservation Police Officer" includes the positions of Chief Conservation Police Administrator and Assistant Conservation Police Administrator.
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| (7) The term "investigator for the Department of
| | Revenue" means any person employed by the Department of Revenue and vested with such investigative duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
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| The term "investigator for the Illinois Gaming Board"
| | means any person employed as such by the Illinois Gaming Board and vested with such peace officer duties as render the person ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act.
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| (8) The term "security employee of the Department of
| | Human Services" means any person employed by the Department of Human Services who (i) is employed at the Chester Mental Health Center and has daily contact with the residents thereof, (ii) is employed within a security unit at a facility operated by the Department and has daily contact with the residents of the security unit, (iii) is employed at a facility operated by the Department that includes a security unit and is regularly scheduled to work at least 50% of his or her working hours within that security unit, or (iv) is a mental health police officer. "Mental health police officer" means any person employed by the Department of Human Services in a position pertaining to the Department's mental health and developmental disabilities functions who is vested with such law enforcement duties as render the person ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. "Security unit" means that portion of a facility that is devoted to the care, containment, and treatment of persons committed to the Department of Human Services as sexually violent persons, persons unfit to stand trial, or persons not guilty by reason of insanity. With respect to past employment, references to the Department of Human Services include its predecessor, the Department of Mental Health and Developmental Disabilities.
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| The changes made to this subdivision (c)(8) by Public
| | Act 92-14 apply to persons who retire on or after January 1, 2001, notwithstanding Section 1-103.1.
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| (9) "Central Management Services security police
| | officer" means any person employed by the Department of Central Management Services who is vested with such law enforcement duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
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| (10) For a member who first became an employee under
| | this Article before July 1, 2005, the term "security employee of the Department of Corrections or the Department of Juvenile Justice" means any employee of the Department of Corrections or the Department of Juvenile Justice or the former Department of Personnel, and any member or employee of the Prisoner Review Board, who has daily contact with inmates or youth by working within a correctional facility or Juvenile facility operated by the Department of Juvenile Justice or who is a parole officer or an employee who has direct contact with committed persons in the performance of his or her job duties. For a member who first becomes an employee under this Article on or after July 1, 2005, the term means an employee of the Department of Corrections or the Department of Juvenile Justice who is any of the following: (i) officially headquartered at a correctional facility or Juvenile facility operated by the Department of Juvenile Justice, (ii) a parole officer, (iii) a member of the apprehension unit, (iv) a member of the intelligence unit, (v) a member of the sort team, or (vi) an investigator.
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| (11) The term "dangerous drugs investigator" means
| | any person who is employed as such by the Department of Human Services.
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| (12) The term "investigator for the Illinois State
| | Police" means a person employed by the Illinois State Police who is vested under Section 4 of the Narcotic Control Division Abolition Act with such law enforcement powers as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
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| (13) "Investigator for the Office of the Attorney
| | General" means any person who is employed as such by the Office of the Attorney General and is vested with such investigative duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For the period before January 1, 1989, the term includes all persons who were employed as investigators by the Office of the Attorney General, without regard to social security status.
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| (14) "Controlled substance inspector" means any
| | person who is employed as such by the Department of Professional Regulation and is vested with such law enforcement duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. The term "controlled substance inspector" includes the Program Executive of Enforcement and the Assistant Program Executive of Enforcement.
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| (15) The term "investigator for the Office of the
| | State's Attorneys Appellate Prosecutor" means a person employed in that capacity on a full-time basis under the authority of Section 7.06 of the State's Attorneys Appellate Prosecutor's Act.
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| (16) "Commerce Commission police officer" means any
| | person employed by the Illinois Commerce Commission who is vested with such law enforcement duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act.
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| (17) "Arson investigator" means any person who is
| | employed as such by the Office of the State Fire Marshal and is vested with such law enforcement duties as render the person ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. A person who was employed as an arson investigator on January 1, 1995 and is no longer in service but not yet receiving a retirement annuity may convert his or her creditable service for employment as an arson investigator into eligible creditable service by paying to the System the difference between the employee contributions actually paid for that service and the amounts that would have been contributed if the applicant were contributing at the rate applicable to persons with the same social security status earning eligible creditable service on the date of application.
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| (18) The term "State highway maintenance worker"
| | means a person who is either of the following:
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| (i) A person employed on a full-time basis by the
| | Illinois Department of Transportation in the position of highway maintainer, highway maintenance lead worker, highway maintenance lead/lead worker, heavy construction equipment operator, power shovel operator, or bridge mechanic; and whose principal responsibility is to perform, on the roadway, the actual maintenance necessary to keep the highways that form a part of the State highway system in serviceable condition for vehicular traffic.
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| (ii) A person employed on a full-time basis by
| | the Illinois State Toll Highway Authority in the position of equipment operator/laborer H-4, equipment operator/laborer H-6, welder H-4, welder H-6, mechanical/electrical H-4, mechanical/electrical H-6, water/sewer H-4, water/sewer H-6, sign maker/hanger H-4, sign maker/hanger H-6, roadway lighting H-4, roadway lighting H-6, structural H-4, structural H-6, painter H-4, or painter H-6; and whose principal responsibility is to perform, on the roadway, the actual maintenance necessary to keep the Authority's tollways in serviceable condition for vehicular traffic.
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| (19) The term "security employee of the Department of
| | Innovation and Technology" means a person who was a security employee of the Department of Corrections or the Department of Juvenile Justice, was transferred to the Department of Innovation and Technology pursuant to Executive Order 2016-01, and continues to perform similar job functions under that Department.
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| (20) "Transferred employee" means an employee who was
| | transferred to the Department of Central Management Services by Executive Order No. 2003-10 or Executive Order No. 2004-2 or transferred to the Department of Innovation and Technology by Executive Order No. 2016-1, or both, and was entitled to eligible creditable service for services immediately preceding the transfer.
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| (d) A security employee of the Department of Corrections or the Department of Juvenile Justice, a security employee of the Department of Human Services who is not a mental health police officer, and a security employee of the Department of Innovation and Technology shall not be eligible for the alternative retirement annuity provided by this Section unless he or she meets the following minimum age and service requirements at the time of retirement:
(i) 25 years of eligible creditable service and age
| | (ii) beginning January 1, 1987, 25 years of eligible
| | creditable service and age 54, or 24 years of eligible creditable service and age 55; or
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| (iii) beginning January 1, 1988, 25 years of eligible
| | creditable service and age 53, or 23 years of eligible creditable service and age 55; or
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| (iv) beginning January 1, 1989, 25 years of eligible
| | creditable service and age 52, or 22 years of eligible creditable service and age 55; or
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| (v) beginning January 1, 1990, 25 years of eligible
| | creditable service and age 51, or 21 years of eligible creditable service and age 55; or
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| (vi) beginning January 1, 1991, 25 years of eligible
| | creditable service and age 50, or 20 years of eligible creditable service and age 55.
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| Persons who have service credit under Article 16 of this Code for service as a security employee of the Department of Corrections or the Department of Juvenile Justice, or the Department of Human Services in a position requiring certification as a teacher may count such service toward establishing their eligibility under the service requirements of this Section; but such service may be used only for establishing such eligibility, and not for the purpose of increasing or calculating any benefit.
(e) If a member enters military service while working in a position in which eligible creditable service may be earned, and returns to State service in the same or another such position, and fulfills in all other respects the conditions prescribed in this Article for credit for military service, such military service shall be credited as eligible creditable service for the purposes of the retirement annuity prescribed in this Section.
(f) For purposes of calculating retirement annuities under this Section, periods of service rendered after December 31, 1968 and before October 1, 1975 as a covered employee in the position of special agent, conservation police officer, mental health police officer, or investigator for the Secretary of State, shall be deemed to have been service as a noncovered employee, provided that the employee pays to the System prior to retirement an amount equal to (1) the difference between the employee contributions that would have been required for such service as a noncovered employee, and the amount of employee contributions actually paid, plus (2) if payment is made after July 31, 1987, regular interest on the amount specified in item (1) from the date of service to the date of payment.
For purposes of calculating retirement annuities under this Section, periods of service rendered after December 31, 1968 and before January 1, 1982 as a covered employee in the position of investigator for the Department of Revenue shall be deemed to have been service as a noncovered employee, provided that the employee pays to the System prior to retirement an amount equal to (1) the difference between the employee contributions that would have been required for such service as a noncovered employee, and the amount of employee contributions actually paid, plus (2) if payment is made after January 1, 1990, regular interest on the amount specified in item (1) from the date of service to the date of payment.
(g) A State policeman may elect, not later than January 1, 1990, to establish eligible creditable service for up to 10 years of his service as a policeman under Article 3, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.5, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State policeman may elect, not later than July 1, 1993, to establish eligible creditable service for up to 10 years of his service as a member of the County Police Department under Article 9, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 9-121.10 and the amounts that would have been contributed had those contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
(h) Subject to the limitation in subsection (i), a State policeman or investigator for the Secretary of State may elect to establish eligible creditable service for up to 12 years of his service as a policeman under Article 5, by filing a written election with the Board on or before January 31, 1992, and paying to the System by January 31, 1994 an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 5-236, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State policeman, conservation police officer, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 10 years of service as a sheriff's law enforcement employee under Article 7, by filing a written election with the Board on or before January 31, 1993, and paying to the System by January 31, 1994 an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 7-139.7, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State policeman, conservation police officer, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 5 years of service as a police officer under Article 3, a policeman under Article 5, a sheriff's law enforcement employee under Article 7, a member of the county police department under Article 9, or a police officer under Article 15 by filing a written election with the Board and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), an investigator for the Office of the Attorney General, or an investigator for the Department of Revenue, may elect to establish eligible creditable service for up to 5 years of service as a police officer under Article 3, a policeman under Article 5, a sheriff's law enforcement employee under Article 7, or a member of the county police department under Article 9 by filing a written election with the Board within 6 months after August 25, 2009 (the effective date of Public Act 96-745) and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State policeman, conservation police officer, investigator for the Office of the Attorney General, an investigator for the Department of Revenue, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties, or law enforcement officer employed on a full-time basis by a forest preserve district under Article 7, a county corrections officer, or a court services officer under Article 9, by filing a written election with the Board within 6 months after August 25, 2009 (the effective date of Public Act 96-745) and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 7-139.8 and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State policeman, arson investigator, or Commerce Commission police officer may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties under Article 7, a county corrections officer, a court services officer under Article 9, or a firefighter under Article 4 by filing a written election with the Board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a conservation police officer may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties under Article 7, a county corrections officer, or a court services officer under Article 9 by filing a written election with the Board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 7-139.8 and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), an investigator for the Department of Revenue, investigator for the Illinois Gaming Board, investigator for the Secretary of State, or arson investigator may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties under Article 7, a county corrections officer, a court services officer under Article 9, or a firefighter under Article 4 by filing a written election with the Board within 6 months after the effective date of this amendatory Act of the 102nd General Assembly and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.
Notwithstanding the limitation in subsection (i), a State policeman or conservation police officer may elect to convert service credit earned under this Article to eligible creditable service, as defined by this Section, by filing a written election with the board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee contributions originally paid for that service and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) the difference between the employer's normal cost of the credit prior to the conversion authorized by Public Act 102-210 and the employer's normal cost of the credit converted in accordance with Public Act 102-210, plus (iii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.
Notwithstanding the limitation in subsection (i), an investigator for the Department of Revenue, investigator for the Illinois Gaming Board, investigator for the Secretary of State, or arson investigator may elect to convert service credit earned under this Article to eligible creditable service, as defined by this Section, by filing a written election with the Board within 6 months after the effective date of this amendatory Act of the 102nd General Assembly and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee contributions originally paid for that service and the amounts that would have been contributed had such contributions been made at the rates applicable to investigators for the Department of Revenue, investigators for the Illinois Gaming Board, investigators for the Secretary of State, or arson investigators, plus (ii) the difference between the employer's normal cost of the credit prior to the conversion authorized by this amendatory Act of the 102nd General Assembly and the employer's normal cost of the credit converted in accordance with this amendatory Act of the 102nd General Assembly, plus (iii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.
(i) The total amount of eligible creditable service established by any person under subsections (g), (h), (j), (k), (l), (l-5), and (o) of this Section shall not exceed 12 years.
(j) Subject to the limitation in subsection (i), an investigator for the Office of the State's Attorneys Appellate Prosecutor or a controlled substance inspector may elect to establish eligible creditable service for up to 10 years of his service as a policeman under Article 3 or a sheriff's law enforcement employee under Article 7, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (1) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6 or 7-139.8, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (2) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
(k) Subject to the limitation in subsection (i) of this Section, an alternative formula employee may elect to establish eligible creditable service for periods spent as a full-time law enforcement officer or full-time corrections officer employed by the federal government or by a state or local government located outside of Illinois, for which credit is not held in any other public employee pension fund or retirement system. To obtain this credit, the applicant must file a written application with the Board by March 31, 1998, accompanied by evidence of eligibility acceptable to the Board and payment of an amount to be determined by the Board, equal to (1) employee contributions for the credit being established, based upon the applicant's salary on the first day as an alternative formula employee after the employment for which credit is being established and the rates then applicable to alternative formula employees, plus (2) an amount determined by the Board to be the employer's normal cost of the benefits accrued for the credit being established, plus (3) regular interest on the amounts in items (1) and (2) from the first day as an alternative formula employee after the employment for which credit is being established to the date of payment.
(l) Subject to the limitation in subsection (i), a security employee of the Department of Corrections may elect, not later than July 1, 1998, to establish eligible creditable service for up to 10 years of his or her service as a policeman under Article 3, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.5, and the amounts that would have been contributed had such contributions been made at the rates applicable to security employees of the Department of Corrections, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
(l-5) Subject to the limitation in subsection (i) of this Section, a State policeman may elect to establish eligible creditable service for up to 5 years of service as a full-time law enforcement officer employed by the federal government or by a state or local government located outside of Illinois for which credit is not held in any other public employee pension fund or retirement system. To obtain this credit, the applicant must file a written application with the Board no later than 3 years after January 1, 2020 (the effective date of Public Act 101-610), accompanied by evidence of eligibility acceptable to the Board and payment of an amount to be determined by the Board, equal to (1) employee contributions for the credit being established, based upon the applicant's salary on the first day as an alternative formula employee after the employment for which credit is being established and the rates then applicable to alternative formula employees, plus (2) an amount determined by the Board to be the employer's normal cost of the benefits accrued for the credit being established, plus (3) regular interest on the amounts in items (1) and (2) from the first day as an alternative formula employee after the employment for which credit is being established to the date of payment.
(m) The amendatory changes to this Section made by Public Act 94-696 apply only to: (1) security employees of the Department of Juvenile Justice employed by the Department of Corrections before June 1, 2006 (the effective date of Public Act 94-696) and transferred to the Department of Juvenile Justice by Public Act 94-696; and (2) persons employed by the Department of Juvenile Justice on or after June 1, 2006 (the effective date of Public Act 94-696) who are required by subsection (b) of Section 3-2.5-15 of the Unified Code of Corrections to have any bachelor's or advanced degree from an accredited college or university or, in the case of persons who provide vocational training, who are required to have adequate knowledge in the skill for which they are providing the vocational training.
(n) A person employed in a position under subsection (b) of this Section who has purchased service credit under subsection (j) of Section 14-104 or subsection (b) of Section 14-105 in any other capacity under this Article may convert up to 5 years of that service credit into service credit covered under this Section by paying to the Fund an amount equal to (1) the additional employee contribution required under Section 14-133, plus (2) the additional employer contribution required under Section 14-131, plus (3) interest on items (1) and (2) at the actuarially assumed rate from the date of the service to the date of payment.
(o) Subject to the limitation in subsection (i), a conservation police officer, investigator for the Secretary of State, Commerce Commission police officer, investigator for the Department of Revenue or the Illinois Gaming Board, or arson investigator subject to subsection (g) of Section 1-160 may elect to convert up to 8 years of service credit established before January 1, 2020 (the effective date of Public Act 101-610) as a conservation police officer, investigator for the Secretary of State, Commerce Commission police officer, investigator for the Department of Revenue or the Illinois Gaming Board, or arson investigator under this Article into eligible creditable service by filing a written election with the Board no later than one year after January 1, 2020 (the effective date of Public Act 101-610), accompanied by payment of an amount to be determined by the Board equal to (i) the difference between the amount of the employee contributions actually paid for that service and the amount of the employee contributions that would have been paid had the employee contributions been made as a noncovered employee serving in a position in which eligible creditable service, as defined in this Section, may be earned, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21; 102-856, eff. 1-1-23; 103-34, eff. 1-1-24.)
(Text of Section from P.A. 102-956 and 103-34)
Sec. 14-110. Alternative retirement annuity.
(a) Any member who has withdrawn from service with not less than 20 years of eligible creditable service and has attained age 55, and any member who has withdrawn from service with not less than 25 years of eligible creditable service and has attained age 50, regardless of whether the attainment of either of the specified ages occurs while the member is still in service, shall be entitled to receive at the option of the member, in lieu of the regular or minimum retirement annuity, a retirement annuity computed as follows:
(i) for periods of service as a noncovered employee:
| | if retirement occurs on or after January 1, 2001, 3% of final average compensation for each year of creditable service; if retirement occurs before January 1, 2001, 2 1/4% of final average compensation for each of the first 10 years of creditable service, 2 1/2% for each year above 10 years to and including 20 years of creditable service, and 2 3/4% for each year of creditable service above 20 years; and
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| (ii) for periods of eligible creditable service as a
| | covered employee: if retirement occurs on or after January 1, 2001, 2.5% of final average compensation for each year of creditable service; if retirement occurs before January 1, 2001, 1.67% of final average compensation for each of the first 10 years of such service, 1.90% for each of the next 10 years of such service, 2.10% for each year of such service in excess of 20 but not exceeding 30, and 2.30% for each year in excess of 30.
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| Such annuity shall be subject to a maximum of 75% of final average compensation if retirement occurs before January 1, 2001 or to a maximum of 80% of final average compensation if retirement occurs on or after January 1, 2001.
These rates shall not be applicable to any service performed by a member as a covered employee which is not eligible creditable service. Service as a covered employee which is not eligible creditable service shall be subject to the rates and provisions of Section 14-108.
(b) For the purpose of this Section, "eligible creditable service" means creditable service resulting from service in one or more of the following positions:
(1) State policeman;
(2) fire fighter in the fire protection service of a
| | (3) air pilot;
(4) special agent;
(5) investigator for the Secretary of State;
(6) conservation police officer;
(7) investigator for the Department of Revenue or the
| | (8) security employee of the Department of Human
| | (9) Central Management Services security police
| | (10) security employee of the Department of
| | Corrections or the Department of Juvenile Justice;
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| (11) dangerous drugs investigator;
(12) investigator for the Illinois State Police;
(13) investigator for the Office of the Attorney
| | (14) controlled substance inspector;
(15) investigator for the Office of the State's
| | Attorneys Appellate Prosecutor;
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| (16) Commerce Commission police officer;
(17) arson investigator;
(18) State highway maintenance worker;
(19) security employee of the Department of
| | Innovation and Technology; or
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| (20) transferred employee.
A person employed in one of the positions specified in this subsection is entitled to eligible creditable service for service credit earned under this Article while undergoing the basic police training course approved by the Illinois Law Enforcement Training Standards Board, if completion of that training is required of persons serving in that position. For the purposes of this Code, service during the required basic police training course shall be deemed performance of the duties of the specified position, even though the person is not a sworn peace officer at the time of the training.
A person under paragraph (20) is entitled to eligible creditable service for service credit earned under this Article on and after his or her transfer by Executive Order No. 2003-10, Executive Order No. 2004-2, or Executive Order No. 2016-1.
(c) For the purposes of this Section:
(1) The term "State policeman" includes any title or
| | position in the Illinois State Police that is held by an individual employed under the Illinois State Police Act.
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| (2) The term "fire fighter in the fire protection
| | service of a department" includes all officers in such fire protection service including fire chiefs and assistant fire chiefs.
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| (3) The term "air pilot" includes any employee whose
| | official job description on file in the Department of Central Management Services, or in the department by which he is employed if that department is not covered by the Personnel Code, states that his principal duty is the operation of aircraft, and who possesses a pilot's license; however, the change in this definition made by Public Act 83-842 shall not operate to exclude any noncovered employee who was an "air pilot" for the purposes of this Section on January 1, 1984.
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| (4) The term "special agent" means any person who by
| | reason of employment by the Division of Narcotic Control, the Bureau of Investigation or, after July 1, 1977, the Division of Criminal Investigation, the Division of Internal Investigation, the Division of Operations, the Division of Patrol, or any other Division or organizational entity in the Illinois State Police is vested by law with duties to maintain public order, investigate violations of the criminal law of this State, enforce the laws of this State, make arrests and recover property. The term "special agent" includes any title or position in the Illinois State Police that is held by an individual employed under the Illinois State Police Act.
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| (5) The term "investigator for the Secretary of
| | State" means any person employed by the Office of the Secretary of State and vested with such investigative duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
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| A person who became employed as an investigator for
| | the Secretary of State between January 1, 1967 and December 31, 1975, and who has served as such until attainment of age 60, either continuously or with a single break in service of not more than 3 years duration, which break terminated before January 1, 1976, shall be entitled to have his retirement annuity calculated in accordance with subsection (a), notwithstanding that he has less than 20 years of credit for such service.
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| (6) The term "Conservation Police Officer" means any
| | person employed by the Division of Law Enforcement of the Department of Natural Resources and vested with such law enforcement duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. The term "Conservation Police Officer" includes the positions of Chief Conservation Police Administrator and Assistant Conservation Police Administrator.
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| (7) The term "investigator for the Department of
| | Revenue" means any person employed by the Department of Revenue and vested with such investigative duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
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| The term "investigator for the Illinois Gaming Board"
| | means any person employed as such by the Illinois Gaming Board and vested with such peace officer duties as render the person ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act.
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| (8) The term "security employee of the Department of
| | Human Services" means any person employed by the Department of Human Services who (i) is employed at the Chester Mental Health Center and has daily contact with the residents thereof, (ii) is employed within a security unit at a facility operated by the Department and has daily contact with the residents of the security unit, (iii) is employed at a facility operated by the Department that includes a security unit and is regularly scheduled to work at least 50% of his or her working hours within that security unit, or (iv) is a mental health police officer. "Mental health police officer" means any person employed by the Department of Human Services in a position pertaining to the Department's mental health and developmental disabilities functions who is vested with such law enforcement duties as render the person ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. "Security unit" means that portion of a facility that is devoted to the care, containment, and treatment of persons committed to the Department of Human Services as sexually violent persons, persons unfit to stand trial, or persons not guilty by reason of insanity. With respect to past employment, references to the Department of Human Services include its predecessor, the Department of Mental Health and Developmental Disabilities.
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| The changes made to this subdivision (c)(8) by Public
| | Act 92-14 apply to persons who retire on or after January 1, 2001, notwithstanding Section 1-103.1.
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| (9) "Central Management Services security police
| | officer" means any person employed by the Department of Central Management Services who is vested with such law enforcement duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
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| (10) For a member who first became an employee under
| | this Article before July 1, 2005, the term "security employee of the Department of Corrections or the Department of Juvenile Justice" means any employee of the Department of Corrections or the Department of Juvenile Justice or the former Department of Personnel, and any member or employee of the Prisoner Review Board, who has daily contact with inmates or youth by working within a correctional facility or Juvenile facility operated by the Department of Juvenile Justice or who is a parole officer or an employee who has direct contact with committed persons in the performance of his or her job duties. For a member who first becomes an employee under this Article on or after July 1, 2005, the term means an employee of the Department of Corrections or the Department of Juvenile Justice who is any of the following: (i) officially headquartered at a correctional facility or Juvenile facility operated by the Department of Juvenile Justice, (ii) a parole officer, (iii) a member of the apprehension unit, (iv) a member of the intelligence unit, (v) a member of the sort team, or (vi) an investigator.
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| (11) The term "dangerous drugs investigator" means
| | any person who is employed as such by the Department of Human Services.
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| (12) The term "investigator for the Illinois State
| | Police" means a person employed by the Illinois State Police who is vested under Section 4 of the Narcotic Control Division Abolition Act with such law enforcement powers as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
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| (13) "Investigator for the Office of the Attorney
| | General" means any person who is employed as such by the Office of the Attorney General and is vested with such investigative duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. For the period before January 1, 1989, the term includes all persons who were employed as investigators by the Office of the Attorney General, without regard to social security status.
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| (14) "Controlled substance inspector" means any
| | person who is employed as such by the Department of Professional Regulation and is vested with such law enforcement duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act. The term "controlled substance inspector" includes the Program Executive of Enforcement and the Assistant Program Executive of Enforcement.
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| (15) The term "investigator for the Office of the
| | State's Attorneys Appellate Prosecutor" means a person employed in that capacity on a full-time basis under the authority of Section 7.06 of the State's Attorneys Appellate Prosecutor's Act.
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| (16) "Commerce Commission police officer" means any
| | person employed by the Illinois Commerce Commission who is vested with such law enforcement duties as render him ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act.
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| (17) "Arson investigator" means any person who is
| | employed as such by the Office of the State Fire Marshal and is vested with such law enforcement duties as render the person ineligible for coverage under the Social Security Act by reason of Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of that Act. A person who was employed as an arson investigator on January 1, 1995 and is no longer in service but not yet receiving a retirement annuity may convert his or her creditable service for employment as an arson investigator into eligible creditable service by paying to the System the difference between the employee contributions actually paid for that service and the amounts that would have been contributed if the applicant were contributing at the rate applicable to persons with the same social security status earning eligible creditable service on the date of application.
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| (18) The term "State highway maintenance worker"
| | means a person who is either of the following:
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| (i) A person employed on a full-time basis by the
| | Illinois Department of Transportation in the position of highway maintainer, highway maintenance lead worker, highway maintenance lead/lead worker, heavy construction equipment operator, power shovel operator, or bridge mechanic; and whose principal responsibility is to perform, on the roadway, the actual maintenance necessary to keep the highways that form a part of the State highway system in serviceable condition for vehicular traffic.
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| (ii) A person employed on a full-time basis by
| | the Illinois State Toll Highway Authority in the position of equipment operator/laborer H-4, equipment operator/laborer H-6, welder H-4, welder H-6, mechanical/electrical H-4, mechanical/electrical H-6, water/sewer H-4, water/sewer H-6, sign maker/hanger H-4, sign maker/hanger H-6, roadway lighting H-4, roadway lighting H-6, structural H-4, structural H-6, painter H-4, or painter H-6; and whose principal responsibility is to perform, on the roadway, the actual maintenance necessary to keep the Authority's tollways in serviceable condition for vehicular traffic.
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| (19) The term "security employee of the Department of
| | Innovation and Technology" means a person who was a security employee of the Department of Corrections or the Department of Juvenile Justice, was transferred to the Department of Innovation and Technology pursuant to Executive Order 2016-01, and continues to perform similar job functions under that Department.
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| (20) "Transferred employee" means an employee who was
| | transferred to the Department of Central Management Services by Executive Order No. 2003-10 or Executive Order No. 2004-2 or transferred to the Department of Innovation and Technology by Executive Order No. 2016-1, or both, and was entitled to eligible creditable service for services immediately preceding the transfer.
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| (d) A security employee of the Department of Corrections or the Department of Juvenile Justice, a security employee of the Department of Human Services who is not a mental health police officer, and a security employee of the Department of Innovation and Technology shall not be eligible for the alternative retirement annuity provided by this Section unless he or she meets the following minimum age and service requirements at the time of retirement:
(i) 25 years of eligible creditable service and age
| | (ii) beginning January 1, 1987, 25 years of eligible
| | creditable service and age 54, or 24 years of eligible creditable service and age 55; or
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| (iii) beginning January 1, 1988, 25 years of eligible
| | creditable service and age 53, or 23 years of eligible creditable service and age 55; or
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| (iv) beginning January 1, 1989, 25 years of eligible
| | creditable service and age 52, or 22 years of eligible creditable service and age 55; or
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| (v) beginning January 1, 1990, 25 years of eligible
| | creditable service and age 51, or 21 years of eligible creditable service and age 55; or
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| (vi) beginning January 1, 1991, 25 years of eligible
| | creditable service and age 50, or 20 years of eligible creditable service and age 55.
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| Persons who have service credit under Article 16 of this Code for service as a security employee of the Department of Corrections or the Department of Juvenile Justice, or the Department of Human Services in a position requiring certification as a teacher may count such service toward establishing their eligibility under the service requirements of this Section; but such service may be used only for establishing such eligibility, and not for the purpose of increasing or calculating any benefit.
(e) If a member enters military service while working in a position in which eligible creditable service may be earned, and returns to State service in the same or another such position, and fulfills in all other respects the conditions prescribed in this Article for credit for military service, such military service shall be credited as eligible creditable service for the purposes of the retirement annuity prescribed in this Section.
(f) For purposes of calculating retirement annuities under this Section, periods of service rendered after December 31, 1968 and before October 1, 1975 as a covered employee in the position of special agent, conservation police officer, mental health police officer, or investigator for the Secretary of State, shall be deemed to have been service as a noncovered employee, provided that the employee pays to the System prior to retirement an amount equal to (1) the difference between the employee contributions that would have been required for such service as a noncovered employee, and the amount of employee contributions actually paid, plus (2) if payment is made after July 31, 1987, regular interest on the amount specified in item (1) from the date of service to the date of payment.
For purposes of calculating retirement annuities under this Section, periods of service rendered after December 31, 1968 and before January 1, 1982 as a covered employee in the position of investigator for the Department of Revenue shall be deemed to have been service as a noncovered employee, provided that the employee pays to the System prior to retirement an amount equal to (1) the difference between the employee contributions that would have been required for such service as a noncovered employee, and the amount of employee contributions actually paid, plus (2) if payment is made after January 1, 1990, regular interest on the amount specified in item (1) from the date of service to the date of payment.
(g) A State policeman may elect, not later than January 1, 1990, to establish eligible creditable service for up to 10 years of his service as a policeman under Article 3, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.5, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State policeman may elect, not later than July 1, 1993, to establish eligible creditable service for up to 10 years of his service as a member of the County Police Department under Article 9, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 9-121.10 and the amounts that would have been contributed had those contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
(h) Subject to the limitation in subsection (i), a State policeman or investigator for the Secretary of State may elect to establish eligible creditable service for up to 12 years of his service as a policeman under Article 5, by filing a written election with the Board on or before January 31, 1992, and paying to the System by January 31, 1994 an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 5-236, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State policeman, conservation police officer, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 10 years of service as a sheriff's law enforcement employee under Article 7, by filing a written election with the Board on or before January 31, 1993, and paying to the System by January 31, 1994 an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 7-139.7, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State policeman, conservation police officer, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 5 years of service as a police officer under Article 3, a policeman under Article 5, a sheriff's law enforcement employee under Article 7, a member of the county police department under Article 9, or a police officer under Article 15 by filing a written election with the Board and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6, 5-236, 7-139.8, 9-121.10, or 15-134.4 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), an investigator for the Office of the Attorney General, or an investigator for the Department of Revenue, may elect to establish eligible creditable service for up to 5 years of service as a police officer under Article 3, a policeman under Article 5, a sheriff's law enforcement employee under Article 7, or a member of the county police department under Article 9 by filing a written election with the Board within 6 months after August 25, 2009 (the effective date of Public Act 96-745) and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6, 5-236, 7-139.8, or 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State policeman, conservation police officer, investigator for the Office of the Attorney General, an investigator for the Department of Revenue, or investigator for the Secretary of State may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties, or law enforcement officer employed on a full-time basis by a forest preserve district under Article 7, a county corrections officer, or a court services officer under Article 9, by filing a written election with the Board within 6 months after August 25, 2009 (the effective date of Public Act 96-745) and paying to the System an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 7-139.8 and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a State policeman, arson investigator, or Commerce Commission police officer may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties under Article 7, a county corrections officer, a court services officer under Article 9, or a firefighter under Article 4 by filing a written election with the Board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 4-108.8, 7-139.8, and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.
Subject to the limitation in subsection (i), a conservation police officer may elect to establish eligible creditable service for up to 5 years of service as a person employed by a participating municipality to perform police duties under Article 7, a county corrections officer, or a court services officer under Article 9 by filing a written election with the Board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Sections 7-139.8 and 9-121.10 and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.
Notwithstanding the limitation in subsection (i), a State policeman or conservation police officer may elect to convert service credit earned under this Article to eligible creditable service, as defined by this Section, by filing a written election with the board within 6 months after July 30, 2021 (the effective date of Public Act 102-210) and paying to the System an amount to be determined by the Board equal to (i) the difference between the amount of employee contributions originally paid for that service and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (ii) the difference between the employer's normal cost of the credit prior to the conversion authorized by Public Act 102-210 and the employer's normal cost of the credit converted in accordance with Public Act 102-210, plus (iii) interest thereon at the actuarially assumed rate for each year, compounded annually, from the date of service to the date of payment.
(i) The total amount of eligible creditable service established by any person under subsections (g), (h), (j), (k), (l), (l-5), (o), and (p) of this Section shall not exceed 12 years.
(j) Subject to the limitation in subsection (i), an investigator for the Office of the State's Attorneys Appellate Prosecutor or a controlled substance inspector may elect to establish eligible creditable service for up to 10 years of his service as a policeman under Article 3 or a sheriff's law enforcement employee under Article 7, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (1) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.6 or 7-139.8, and the amounts that would have been contributed had such contributions been made at the rates applicable to State policemen, plus (2) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
(k) Subject to the limitation in subsection (i) of this Section, an alternative formula employee may elect to establish eligible creditable service for periods spent as a full-time law enforcement officer or full-time corrections officer employed by the federal government or by a state or local government located outside of Illinois, for which credit is not held in any other public employee pension fund or retirement system. To obtain this credit, the applicant must file a written application with the Board by March 31, 1998, accompanied by evidence of eligibility acceptable to the Board and payment of an amount to be determined by the Board, equal to (1) employee contributions for the credit being established, based upon the applicant's salary on the first day as an alternative formula employee after the employment for which credit is being established and the rates then applicable to alternative formula employees, plus (2) an amount determined by the Board to be the employer's normal cost of the benefits accrued for the credit being established, plus (3) regular interest on the amounts in items (1) and (2) from the first day as an alternative formula employee after the employment for which credit is being established to the date of payment.
(l) Subject to the limitation in subsection (i), a security employee of the Department of Corrections may elect, not later than July 1, 1998, to establish eligible creditable service for up to 10 years of his or her service as a policeman under Article 3, by filing a written election with the Board, accompanied by payment of an amount to be determined by the Board, equal to (i) the difference between the amount of employee and employer contributions transferred to the System under Section 3-110.5, and the amounts that would have been contributed had such contributions been made at the rates applicable to security employees of the Department of Corrections, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
(l-5) Subject to the limitation in subsection (i) of this Section, a State policeman may elect to establish eligible creditable service for up to 5 years of service as a full-time law enforcement officer employed by the federal government or by a state or local government located outside of Illinois for which credit is not held in any other public employee pension fund or retirement system. To obtain this credit, the applicant must file a written application with the Board no later than 3 years after January 1, 2020 (the effective date of Public Act 101-610), accompanied by evidence of eligibility acceptable to the Board and payment of an amount to be determined by the Board, equal to (1) employee contributions for the credit being established, based upon the applicant's salary on the first day as an alternative formula employee after the employment for which credit is being established and the rates then applicable to alternative formula employees, plus (2) an amount determined by the Board to be the employer's normal cost of the benefits accrued for the credit being established, plus (3) regular interest on the amounts in items (1) and (2) from the first day as an alternative formula employee after the employment for which credit is being established to the date of payment.
(m) The amendatory changes to this Section made by Public Act 94-696 apply only to: (1) security employees of the Department of Juvenile Justice employed by the Department of Corrections before June 1, 2006 (the effective date of Public Act 94-696) and transferred to the Department of Juvenile Justice by Public Act 94-696; and (2) persons employed by the Department of Juvenile Justice on or after June 1, 2006 (the effective date of Public Act 94-696) who are required by subsection (b) of Section 3-2.5-15 of the Unified Code of Corrections to have any bachelor's or advanced degree from an accredited college or university or, in the case of persons who provide vocational training, who are required to have adequate knowledge in the skill for which they are providing the vocational training.
(n) A person employed in a position under subsection (b) of this Section who has purchased service credit under subsection (j) of Section 14-104 or subsection (b) of Section 14-105 in any other capacity under this Article may convert up to 5 years of that service credit into service credit covered under this Section by paying to the Fund an amount equal to (1) the additional employee contribution required under Section 14-133, plus (2) the additional employer contribution required under Section 14-131, plus (3) interest on items (1) and (2) at the actuarially assumed rate from the date of the service to the date of payment.
(o) Subject to the limitation in subsection (i), a conservation police officer, investigator for the Secretary of State, Commerce Commission police officer, investigator for the Department of Revenue or the Illinois Gaming Board, or arson investigator subject to subsection (g) of Section 1-160 may elect to convert up to 8 years of service credit established before January 1, 2020 (the effective date of Public Act 101-610) as a conservation police officer, investigator for the Secretary of State, Commerce Commission police officer, investigator for the Department of Revenue or the Illinois Gaming Board, or arson investigator under this Article into eligible creditable service by filing a written election with the Board no later than one year after January 1, 2020 (the effective date of Public Act 101-610), accompanied by payment of an amount to be determined by the Board equal to (i) the difference between the amount of the employee contributions actually paid for that service and the amount of the employee contributions that would have been paid had the employee contributions been made as a noncovered employee serving in a position in which eligible creditable service, as defined in this Section, may be earned, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
(p) Subject to the limitation in subsection (i), an investigator for the Office of the Attorney General subject to subsection (g) of Section 1-160 may elect to convert up to 8 years of service credit established before the effective date of this amendatory Act of the 102nd General Assembly as an investigator for the Office of the Attorney General under this Article into eligible creditable service by filing a written election with the Board no later than one year after the effective date of this amendatory Act of the 102nd General Assembly, accompanied by payment of an amount to be determined by the Board equal to (i) the difference between the amount of the employee contributions actually paid for that service and the amount of the employee contributions that would have been paid had the employee contributions been made as a noncovered employee serving in a position in which eligible creditable service, as defined in this Section, may be earned, plus (ii) interest thereon at the effective rate for each year, compounded annually, from the date of service to the date of payment.
(Source: P.A. 102-210, eff. 7-30-21; 102-538, eff. 8-20-21; 102-956, eff. 5-27-22 ; 103-34, eff. 1-1-24.)
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40 ILCS 5/14-111
(40 ILCS 5/14-111) (from Ch. 108 1/2, par. 14-111)
Sec. 14-111.
Re-entry After retirement.
(a) An annuitant who re-enters the service of a department and receives
compensation on a regular payroll shall receive no payments of the
retirement annuity during the time he is so employed, with the following
exceptions:
(1) An annuitant who is employed by a department | | while he or she is a continuing participant in the General Assembly Retirement System under Sections 2-117.1 and 14-105.4 will not be considered to have made a re-entry after retirement within the meaning of this Section for the duration of such continuing participation. Any person who is a continuing participant under Sections 2-117.1 and 14-105.4 on the effective date of this amendatory Act of 1991 and whose retirement annuity has been suspended under this Section shall be entitled to receive from the System a sum equal to the annuity payments that have been withheld under this Section, and shall receive the benefit of this amendment without regard to Section 1-103.1.
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(2) An annuitant who accepts temporary employment
| | from such a department for a period not exceeding 75 working days in any calendar year is not considered to make a re-entry after retirement within the meaning of this Section. Any part of a day on temporary employment is considered a full day of employment.
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(b) If such person re-enters the service of a department, not as a
temporary employee, contributions to the system shall begin as of the
date of re-employment and additional creditable service shall begin to
accrue. He shall assume the status of a member entitled to all rights
and privileges in the system, including death and disability benefits,
excluding a refund of contributions.
Upon subsequent retirement, his retirement annuity shall consist of:
(1) the amounts of the annuities terminated by
| | re-entry into service; and
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(2) the amount of the additional retirement annuity
| | earned by the member during the period of additional membership service which shall not be subject to reversionary annuity if any.
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The total retirement annuity shall not, however, exceed the maximum
applicable to the member at the time of original retirement.
In the computation of any such retirement annuity, the time that the
member was on retirement shall not interrupt the continuity of service
for the computation of final average compensation and the additional
membership service shall be considered, together with service rendered
before the previous retirement, in establishing final average
compensation.
A person who re-enters the service of a department within 3 years
after retiring may qualify to have the retirement annuity computed as
though the member had not previously retired by paying to
the System, within 5 years after re-entry and prior to subsequent
retirement, in a lump sum or in installment payments in accordance with
such rules as may be adopted by the Board, an amount equal to all
retirement payments received, including any payments received in accordance
with subsection (c) or (d) of Section 14-130, plus regular interest from
the date retirement payments were suspended to the date of repayment.
(Source: P.A. 86-1488; 87-794.)
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40 ILCS 5/14-112
(40 ILCS 5/14-112) (from Ch. 108 1/2, par. 14-112)
Sec. 14-112.
Level Income Option.
A covered employee who retires
from service prior to the age of becoming eligible for old age insurance
payments under the Federal Social Security Act and who at the time of
retirement is fully insured under that Act, may elect to have the
retirement annuity increased prior to such eligible age and reduced
after such age by amounts which have equivalent actuarial values. Such
modification is for the purpose of coordinating a member's retirement
annuity with old age insurance benefits receivable under that Federal
Act.
However, the option under this Section is not available if the resulting
payments by the System after the employee becomes eligible for old age insurance
payments under the Federal Social Security Act would be less than $10 per month.
(Source: P.A. 81-863.)
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40 ILCS 5/14-113
(40 ILCS 5/14-113) (from Ch. 108 1/2, par. 14-113)
Sec. 14-113.
Reversionary annuity.
A member entitled to a
retirement annuity may elect, at the time of retirement, to receive a
lesser amount of such allowance and provide with the remainder of his
equity, as actuarially determined, an annuity for any person who is
dependent upon the member at the time of retirement, as named in a written
direction filed with the board as a part of his application for a
retirement annuity; provided, that (1) the condition of
dependency exists and is proved to the satisfaction of the board; and
that (2) the reversionary annuity resulting from such election is not
less than $10 per month, nor more than the amount of reduced
retirement annuity which the member receives under this option.
The reversionary annuity shall be the amount determined by the board
in accordance with the member's written direction. A reversionary
annuity shall begin the first day of the month following the death of
the annuitant; provided, that if the designated reversionary annuity
beneficiary does not survive the annuitant, a reversionary annuity shall
not be payable nor shall any change be permitted in the written
direction filed with the board after the retirement annuity has been granted
and became effective.
(Source: P.A. 80-841.)
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40 ILCS 5/14-114
(40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 14-114. Automatic increase in retirement annuity.
(a) This subsection (a) is subject to subsections (a-1) and (a-2) of this Section. Any person receiving a retirement annuity under this Article who
retires having attained age 60, or who retires before age 60 having at
least 35 years of creditable service, or who retires on or after January
1, 2001 at an age which, when added to the number of years of his or her
creditable service, equals at least 85, shall, on January 1 next
following the first full year of retirement, have the amount of the then fixed
and payable monthly retirement annuity increased 3%. Any person receiving a
retirement annuity under this Article who retires before attainment of age 60
and with less than (i) 35 years of creditable service if retirement
is before January 1, 2001, or (ii) the number of years of creditable service
which, when added to the member's age, would equal 85, if retirement is on
or after January 1, 2001, shall have the amount of the fixed and payable
retirement annuity increased by 3% on the January 1 occurring on or next
following (1) attainment of age 60, or (2) the first anniversary of retirement,
whichever occurs later. However, for persons who receive the alternative
retirement annuity under Section 14-110, references in this subsection (a) to
attainment of age 60 shall be deemed to refer to attainment of age 55. For a
person receiving early retirement incentives under Section 14-108.3 whose
retirement annuity began after January 1, 1992 pursuant to an extension granted
under subsection (e) of that Section, the first anniversary of retirement shall
be deemed to be January 1, 1993.
For a person who retires on or after June 28, 2001 and on or before October 1, 2001,
and whose retirement annuity is calculated, in whole or in part, under Section
14-110 or subsection (g) or (h) of Section 14-108, the first anniversary of
retirement shall be deemed to be January 1, 2002.
On each January 1 following the date of the initial increase under this
subsection, the employee's monthly retirement annuity shall be increased
by an additional 3%.
Beginning January 1, 1990, all automatic annual increases payable under
this Section shall be calculated as a percentage of the total annuity
payable at the time of the increase, including previous increases granted
under this Article.
(a-1) Notwithstanding subsection (a), but subject to the provisions of subsection (a-2), all automatic increases payable under subsection (a) on or after the effective date of this amendatory Act of the 98th General Assembly shall be calculated as 3% of the lesser of (1) the total annuity
payable at the time of the increase, including previous
increases granted, or (2) $800 ($1,000 for portions of the annuity based
on service as a noncovered employee) multiplied by
the number of years of creditable service upon which the
annuity is based. Beginning January 1, 2016, the $800 ($1,000 for portions of the annuity based
on service as a noncovered employee) referred in item (2) of this subsection (a-1) shall be increased on each January 1 by the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the preceding September; these adjustments shall be cumulative and compounded.
For the purposes of this subsection (a-1), "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new dollar amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the System by November 1 of each year. This subsection (a-1) is applicable without regard to whether the person is in service on or after the effective date of this amendatory Act of the 98th General Assembly. (a-2) Notwithstanding subsections (a) and (a-1), for an active or inactive Tier 1 member who has not begun to receive a retirement annuity under this Article before July 1, 2014: (1) the second automatic annual increase payable | | under subsection (a) shall be at the rate of 0% of the total annuity payable at the time of the increase if he or she is at least age 50 on the effective date of this amendatory Act;
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| (2) the second, fourth, and sixth automatic annual
| | increases payable under subsection (a) shall be at the rate of 0% of the total annuity payable at the time of the increase if he or she is at least age 47 but less than age 50 on the effective date of this amendatory Act;
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| (3) the second, fourth, sixth, and eighth automatic
| | annual increases payable under subsection (a) shall be at the rate of 0% of the total annuity payable at the time of the increase if he or she is at least age 44 but less than age 47 on the effective date of this amendatory Act; and
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| (4) the second, fourth, sixth, eighth, and tenth
| | automatic annual increases payable under subsection (a) shall be at the rate of 0% of the total annuity payable at the time of the increase if he or she is less than age 44 on the effective date of this amendatory Act.
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| For the purposes of Section 1-103.1, this subsection (a-2) is applicable without regard to whether the person is in service on or after the effective date of this amendatory Act of the 98th General Assembly.
(b) The provisions of subsection (a) of this Section shall be
applicable to an employee only if the employee makes the additional
contributions required after December 31, 1969 for the purpose of the
automatic increases for not less than the equivalent of one full year.
If an employee becomes an annuitant before his additional contributions
equal one full year's contributions based on his salary at the date of
retirement, the employee may pay the necessary balance of the
contributions to the system, without interest, and be eligible for the
increasing annuity authorized by this Section.
(c) The provisions of subsection (a) of this Section shall not be
applicable to any annuitant who is on retirement on December 31, 1969, and
thereafter returns to State service, unless the member has established at
least one year of additional creditable service following reentry into service.
(d) In addition to other increases which may be provided by this Section,
on January 1, 1981 any annuitant who was receiving a retirement annuity
on or before January 1, 1971 shall have his retirement annuity then being
paid increased $1 per month for each year of creditable service. On January
1, 1982, any annuitant who began receiving a retirement annuity on or
before January 1, 1977, shall have his retirement annuity then being paid
increased $1 per month for each year of creditable service.
On January 1, 1987, any annuitant who began receiving a retirement
annuity on or before January 1, 1977, shall have the monthly retirement annuity
increased by an amount equal to 8¢ per year of creditable service times the
number of years that have elapsed since the annuity began.
(e) Every person who receives the alternative retirement annuity under
Section 14-110 and who is eligible to receive the 3% increase under subsection
(a) on January 1, 1986, shall also receive on that date a one-time increase
in retirement annuity equal to the difference between (1) his actual
retirement annuity on that date, including any increases received under
subsection (a), and (2) the amount of retirement annuity he would have
received on that date if the amendments to subsection (a) made by Public
Act 84-162 had been in effect since the date of his retirement.
(Source: P.A. 98-599, eff. 6-1-14 .)
(Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 14-114.
Automatic increase in retirement annuity.
(a) Any person receiving a retirement annuity under this Article who
retires having attained age 60, or who retires before age 60 having at
least 35 years of creditable service, or who retires on or after January
1, 2001 at an age which, when added to the number of years of his or her
creditable service, equals at least 85, shall, on January 1 next
following the first full year of retirement, have the amount of the then fixed
and payable monthly retirement annuity increased 3%. Any person receiving a
retirement annuity under this Article who retires before attainment of age 60
and with less than (i) 35 years of creditable service if retirement
is before January 1, 2001, or (ii) the number of years of creditable service
which, when added to the member's age, would equal 85, if retirement is on
or after January 1, 2001, shall have the amount of the fixed and payable
retirement annuity increased by 3% on the January 1 occurring on or next
following (1) attainment of age 60, or (2) the first anniversary of retirement,
whichever occurs later. However, for persons who receive the alternative
retirement annuity under Section 14-110, references in this subsection (a) to
attainment of age 60 shall be deemed to refer to attainment of age 55. For a
person receiving early retirement incentives under Section 14-108.3 whose
retirement annuity began after January 1, 1992 pursuant to an extension granted
under subsection (e) of that Section, the first anniversary of retirement shall
be deemed to be January 1, 1993.
For a person who retires on or after June 28, 2001 and on or before October 1, 2001,
and whose retirement annuity is calculated, in whole or in part, under Section
14-110 or subsection (g) or (h) of Section 14-108, the first anniversary of
retirement shall be deemed to be January 1, 2002.
On each January 1 following the date of the initial increase under this
subsection, the employee's monthly retirement annuity shall be increased
by an additional 3%.
Beginning January 1, 1990, all automatic annual increases payable under
this Section shall be calculated as a percentage of the total annuity
payable at the time of the increase, including previous increases granted
under this Article.
(b) The provisions of subsection (a) of this Section shall be
applicable to an employee only if the employee makes the additional
contributions required after December 31, 1969 for the purpose of the
automatic increases for not less than the equivalent of one full year.
If an employee becomes an annuitant before his additional contributions
equal one full year's contributions based on his salary at the date of
retirement, the employee may pay the necessary balance of the
contributions to the system, without interest, and be eligible for the
increasing annuity authorized by this Section.
(c) The provisions of subsection (a) of this Section shall not be
applicable to any annuitant who is on retirement on December 31, 1969, and
thereafter returns to State service, unless the member has established at
least one year of additional creditable service following reentry into service.
(d) In addition to other increases which may be provided by this Section,
on January 1, 1981 any annuitant who was receiving a retirement annuity
on or before January 1, 1971 shall have his retirement annuity then being
paid increased $1 per month for each year of creditable service. On January
1, 1982, any annuitant who began receiving a retirement annuity on or
before January 1, 1977, shall have his retirement annuity then being paid
increased $1 per month for each year of creditable service.
On January 1, 1987, any annuitant who began receiving a retirement
annuity on or before January 1, 1977, shall have the monthly retirement annuity
increased by an amount equal to 8¢ per year of creditable service times the
number of years that have elapsed since the annuity began.
(e) Every person who receives the alternative retirement annuity under
Section 14-110 and who is eligible to receive the 3% increase under subsection
(a) on January 1, 1986, shall also receive on that date a one-time increase
in retirement annuity equal to the difference between (1) his actual
retirement annuity on that date, including any increases received under
subsection (a), and (2) the amount of retirement annuity he would have
received on that date if the amendments to subsection (a) made by Public
Act 84-162 had been in effect since the date of his retirement.
(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
92-651, eff. 7-11-02.)
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40 ILCS 5/14-115
(40 ILCS 5/14-115) (from Ch. 108 1/2, par. 14-115)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 14-115. Supplemental Annuity. (a) Each annuitant, who retired at age
55 or over and after the completion of at least 15 years of creditable
service, whose status as an employee terminated before January 1, 1970,
is entitled to a monthly supplemental annuity effective January 1, 1970,
or on January 1 nearest the annuitant's 65th birthday, whichever is
later. Such supplemental annuity shall be 1-1/2% of the monthly
retirement annuity, multiplied by the number of full years which elapsed
from the date of the member's latest retirement to the effective date of
the supplemental annuity. This monthly supplemental annuity shall be
increased on each January 1 thereafter during the lifetime of the
annuitant by 1-1/2% of the monthly retirement annuity disregarding any
supplemental annuity previously granted. Beginning January 1, 1972, the
rate of increase in the supplemental annuity shall be 2%. Beginning January
1, 1979, the rate of increase in the supplemental annuity shall be 3%.
The supplemental annuity under this subsection is payable only if the
annuitant pays to the System, in a single sum, an amount equal to 1% of his
monthly final average compensation multiplied by the number of full years
of creditable service.
(b) Any member who retired with less than 15 years of creditable service
whose status as an employee terminated before January 1, 1970, shall be
entitled to an increase of 3% of the original monthly retirement allowance,
effective January 1, 1982, or on January 1 nearest the annuitant's 65th
birthday, whichever is later. On each January 1 thereafter during the lifetime
of the member, he shall be entitled to an additional increase of 3% of the
original monthly retirement allowance. No qualifying contribution is required
for the supplemental annuity under this subsection.
(c) Beginning January 1, 1990, all automatic annual increases payable
under this Section shall be calculated as a percentage of the total monthly
amount of annuity payable at the time of the increase, including any
supplemental annuity or other increase previously granted under this Article.
(d) Notwithstanding any other provision of this Section, all increases payable under this Section on or after the effective date of this amendatory Act of the 98th General Assembly shall be calculated as 3% of the lesser of (1) the total annuity
payable at the time of the increase, including previous
increases granted, or (2) $800 ($1,000 for portions of the annuity based
on service as a noncovered employee) multiplied by
the number of years of creditable service upon which the
annuity is based. Beginning January 1, 2016, the $800 ($1,000 for portions of the annuity based
on service as a noncovered employee) referred in item (2) of this subsection (d) shall be increased on each January 1 by the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the preceding September; these adjustments shall be cumulative and compounded.
For the purposes of this subsection (d), "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new dollar amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the System by November 1 of each year. This subsection (d) is applicable without regard to whether the person is in service on or after the effective date of this amendatory Act of the 98th General Assembly. (Source: P.A. 98-599, eff. 6-1-14 .) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 14-115.
Supplemental Annuity.
(a) Each annuitant, who retired at age
55 or over and after the completion of at least 15 years of creditable
service, whose status as an employee terminated before January 1, 1970,
is entitled to a monthly supplemental annuity effective January 1, 1970,
or on January 1 nearest the annuitant's 65th birthday, whichever is
later. Such supplemental annuity shall be 1-1/2% of the monthly
retirement annuity, multiplied by the number of full years which elapsed
from the date of the member's latest retirement to the effective date of
the supplemental annuity. This monthly supplemental annuity shall be
increased on each January 1 thereafter during the lifetime of the
annuitant by 1-1/2% of the monthly retirement annuity disregarding any
supplemental annuity previously granted. Beginning January 1, 1972, the
rate of increase in the supplemental annuity shall be 2%. Beginning January
1, 1979, the rate of increase in the supplemental annuity shall be 3%.
The supplemental annuity under this subsection is payable only if the
annuitant pays to the System, in a single sum, an amount equal to 1% of his
monthly final average compensation multiplied by the number of full years
of creditable service.
(b) Any member who retired with less than 15 years of creditable service
whose status as an employee terminated before January 1, 1970, shall be
entitled to an increase of 3% of the original monthly retirement allowance,
effective January 1, 1982, or on January 1 nearest the annuitant's 65th
birthday, whichever is later. On each January 1 thereafter during the lifetime
of the member, he shall be entitled to an additional increase of 3% of the
original monthly retirement allowance. No qualifying contribution is required
for the supplemental annuity under this subsection.
(c) Beginning January 1, 1990, all automatic annual increases payable
under this Section shall be calculated as a percentage of the total monthly
amount of annuity payable at the time of the increase, including any
supplemental annuity or other increase previously granted under this Article.
(Source: P.A. 86-273.)
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40 ILCS 5/14-116
(40 ILCS 5/14-116) (from Ch. 108 1/2, par. 14-116)
Sec. 14-116.
Nonoccupational death benefit-death before
retirement.
(a) Upon death of a member before retirement from any cause other
than illness contracted or injuries received in the performance of duty
to the State, if no survivors annuity beneficiary survives the member,
such person as the member has nominated by written direction
duly acknowledged
and filed with the board or if no such nomination the estate of the
member, except as otherwise provided, shall receive the member's accumulated
contributions plus credited interest. If such member dies in service
and was in receipt of
compensation within a period of 12 months before death, or if death
occurred during the first 30 days of absence on account of disability or
while in receipt of a nonoccupational disability or
occupational disability
benefit, a death benefit shall also be payable in the manner provided in
this Section. The benefit shall be equal to one month's final average
compensation upon death occurring during the first year of service and
an additional amount of one month's final average
compensation for each
additional complete year of creditable service, but not to exceed 6 months'
final average compensation.
(b) When an annuitant re-enters the service in a department, and
dies under the conditions described in paragraph (a) of this Section,
the accumulated contributions plus credited interest to be paid as provided
in this Section
shall, if the member has not previously elected a reversionary
annuity, consist
of the excess, if any, of his accumulated contributions plus credited
interest over the total
amount of retirement annuity payments received
by the member before
death. The death benefit provided from State contributions is
payable only if the member has rendered at least one year of
creditable service
during such re-employment and is paid in the manner provided in this
Article.
(c) Upon the death of a member before retirement, or while in
service after having previously retired, from any cause other than
illness contracted or injuries received in the performance of duty to
the State, leaving an eligible survivors annuity beneficiary, such
person as the member has nominated by written direction duly
acknowledged and
filed with the board or if no such nomination the estate of the member
is entitled to a refund of the member's contributions for
retirement annuity plus credited interest
less
retirement annuity payments, if any, and a
survivors annuity
is payable in the manner provided in this Article.
(d) Instead of a death benefit provided in this Section, the widow
of a member, if eligible therefor, may elect to receive the widow's
annuity and lump sum payment provided in this Article.
(Source: P.A. 80-841.)
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40 ILCS 5/14-117
(40 ILCS 5/14-117) (from Ch. 108 1/2, par. 14-117)
Sec. 14-117.
Nonoccupational death benefit-Death after retirement.
Upon death of a retired member, unless a reversionary annuity,
widow's annuity or survivors annuity is payable, a death benefit shall
be payable to such person as the member shall have nominated by written
direction duly acknowledged and filed with the board or if no such
nomination, to the estate of the member. Such benefit shall consist of
the excess, if any, of the member's accumulated contributions plus credited
interest still
remaining in the system at the time of retirement, over the total amount
of all retirement annuity payments received by the member prior to
death subject to a minimum payment of $500.
(Source: P.A. 80-841.)
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40 ILCS 5/14-118
(40 ILCS 5/14-118) (from Ch. 108 1/2, par. 14-118)
Sec. 14-118.
Widow's annuity - Conditions for payment.
A widow who
exercises the right of election to receive an annuity pursuant to this
Section is entitled to a lump sum payment of $500 plus a widow's
annuity, if:
(1) she was married to the deceased member:
(i) in the case of a member who dies before the | | effective date of this amendatory Act of the 91st General Assembly, for at least one year prior to his death or retirement, whichever first occurs, and also on the day of the last termination of his service as a State employee; or
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(ii) in the case of a member who dies on or after
| | the effective date of this amendatory Act of the 91st General Assembly, for at least one year immediately prior to the date of death, regardless of the date of withdrawal;
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(2) the deceased member had at least 8 years of
| | creditable service if death occurred while in service, or while on leave of absence from service, or while in receipt of a nonoccupational disability or occupational disability benefit, or after retirement;
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(3) she was nominated exclusively to receive the
| | entire death benefit payable under this Article;
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(4) death of the member occurred after withdrawal,
| | and he had fulfilled the prescribed age and service conditions for establishing a right in a retirement annuity; and
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(5) she elected to receive the widow's annuity within
| | 6 months from the date of death of the employee, otherwise the survivors annuity if applicable, shall be payable.
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If a widow's annuity beneficiary becomes entitled to a survivors
annuity and a widow's annuity, she shall elect to receive only one of such
annuities.
The surviving spouse of a person who (1) died on or after January 1,
1985, (2) withdrew from service prior to August 1, 1953, (3) was receiving
an annuity from the system at the time of death, and (4) meets all other
requirements of this Section, shall be entitled to the benefits provided
under this Section.
A widow's annuity shall be payable beginning on the first of the
month following the date of death of the member if the widow has then
attained age 50 or, if she is under age 50 on such date, on the first of
the month following her attainment of such age; provided, that if an
unmarried child or children of the member under age 18 (or under age
22 if a full-time student) also survive him,
and the child or children are under the care of the eligible widow, the
widow's annuity shall begin on the first of the month following the
member's death without regard to the age of the widow. If she is under
age 50 at the death of the member and she qualifies for a widow's
annuity, she is entitled to receive the lump sum payment immediately
upon application, but payment of the widow's annuity shall be deferred
as provided above.
The provision for a widow's annuity shall not be construed to affect the
payment of a reversionary annuity.
If a widow qualifies for more than one widow's annuity, or for a
widow's annuity and a survivors annuity, she shall elect
to receive only one of such annuities.
This Section shall not apply to the widow of any male person who
first became a member after July 19, 1961.
(Source: P.A. 90-448, eff. 8-16-97; 91-887, eff. 7-6-00.)
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40 ILCS 5/14-119
(40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
Sec. 14-119. Amount of widow's annuity.
(a) The widow's annuity shall be 50% of the amount of retirement annuity
payable to the member on the date of death while on retirement if an
annuitant, or on the date of his death while in service if an employee,
regardless of his age on such date, or on the date of withdrawal if death
occurred after termination of service under the conditions prescribed in
the preceding Section.
(b) If an eligible widow, regardless of age, has in her care any
unmarried child or children of the member under age 18 (under age 22 if a
full-time student), the widow's
annuity shall be increased in the amount of 5% of the retirement annuity
for each such child, but the combined payments for a widow and
children shall not exceed 66 2/3% of the member's earned
retirement annuity.
The amount of retirement annuity from which the widow's
annuity is derived shall be that earned by the member without regard to
whether he attained age 60 prior to his withdrawal under the conditions
stated or prior to his death.
(c) Marriage of a child shall render the child ineligible for further
consideration in the increase in the amount of the widow's annuity.
Attainment of age 18 (age 22 if a full-time student)
shall render a child ineligible for
further consideration in the increase of the widow's annuity, but the
annuity to the widow shall be continued thereafter, without regard to
her age at that time.
(d) Except as otherwise provided in this subsection (d), a widow's annuity payable on account of any covered employee who
has been a covered employee for at least 18 months shall be reduced
by 1/2 of the amount of survivors benefits to which his beneficiaries are
eligible under the provisions of the Federal Social Security Act, except
that (1) the amount of any widow's annuity payable under this Article shall
not be reduced by reason of any increase under that Act which occurs after
the offset required by this subsection is first applied to that annuity,
and (2) for benefits granted on or after January 1, 1992, the offset under
this subsection (d) shall not exceed 50% of the amount of widow's annuity
otherwise payable.
Beginning July 1, 2009, the offset under this subsection (d) shall no
longer be applied to any widow's annuity of any person who began receiving retirement benefits or a widow's annuity prior to January 1, 1998.
Beginning July 1, 2009, the offset under this subsection (d) shall no longer be applied to the widow's annuity of any person who began receiving a widow's annuity on or after January 1, 1998 and before the effective date of this amendatory Act of the 95th General Assembly. Any person who began receiving retirement benefits after January 1, 1998 and before the effective date of this amendatory Act of the 95th General Assembly may, during a one-time election period established by the System, elect to reduce his or her retirement annuity by 3.825% in exchange for not having the offset under this subsection (d) applied to his or her widow's annuity. Any employee in service on the effective date of this amendatory Act of the 95th General Assembly may, at the time of retirement, elect to reduce his or her retirement annuity by 3.825% in exchange for not having the offset under this subsection (d) applied to his or her widow's annuity. If a widow's annuity is payable to the widow of an employee based on the employee's death in service, then the offset under this subsection (d) shall no longer be applied to the widow's annuity. A retiree who elects to reduce his or her retirement annuity under this subsection (d) in exchange for not having the offset applied may make an irrevocable election to eliminate the reduction of his or her retirement annuity if there is a change in marital status due to death or divorce, but the retiree is not entitled to reimbursement of any benefit reduction prior to the election. (e) Upon the death of a recipient of a widow's annuity the excess, if
any, of the member's accumulated contributions plus credited interest over
all annuity payments to the member and widow, exclusive of the $500 lump
sum payment, shall be paid to the named beneficiary of the widow, or if
none has been named, to the estate of the widow, provided no reversionary
annuity is payable.
(f) On January 1, 1981, any recipient of a widow's annuity who was receiving
a widow's annuity on or before January 1, 1971, shall have her widow's annuity
then being paid increased by 1% for each full year which has elapsed from
the date the widow's annuity began. On January 1, 1982, any recipient
of a widow's annuity who began receiving a widow's annuity after January
1, 1971, but before January 1, 1981, shall have her widow's annuity then
being paid increased by 1% for each full year which has elapsed from the
date the widow's annuity began. On January 1, 1987, any recipient of a
widow's annuity who began receiving the widow's annuity on or before January
1, 1977, shall have the monthly widow's annuity increased by $1
for each full year which has elapsed since the date the
annuity began.
(g) Beginning January 1, 1990, every widow's annuity shall be
increased (1) on each January 1 occurring on or after the commencement
of the annuity if the deceased member died while receiving a retirement
annuity, or (2) in other cases, on each January 1 occurring on or after
the first anniversary of the commencement of the annuity, by an amount
equal to 3% of the current amount of the annuity, including any previous
increases under this Article. Such increases shall apply without regard to
whether the deceased member was in service on or after the effective date
of Public Act 86-1488, but shall not accrue for any period prior to January
1, 1990.
(Source: P.A. 95-279, eff. 1-1-08; 95-1043, eff. 3-26-09.)
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40 ILCS 5/14-120
(40 ILCS 5/14-120) (from Ch. 108 1/2, par. 14-120)
Sec. 14-120. Survivors annuities - Conditions for payments. A
survivors annuity is established for all members of the System. Upon
the death of any male person who was a member on July 19, 1961, however,
his widow may have the option of receiving the widow's annuity provided
in this Article, in lieu of the survivors annuity.
(a) A survivors annuity beneficiary, as herein defined, is eligible
for a survivors annuity if the deceased member had completed at least 1
1/2 years of contributing creditable service if death occurred:
(1) while in service;
(2) while on an approved or authorized leave of | | absence from service, not exceeding one year continuously; or
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(3) while in receipt of a non-occupational disability
| | or an occupational disability benefit.
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(b) If death of the member occurs after withdrawal, the survivors
annuity beneficiary is eligible for such annuity only if the member had
fulfilled at the date of withdrawal the prescribed service conditions
for establishing a right in a retirement annuity.
(c) Payment of the survivors annuity shall begin immediately if the
beneficiary is 50 years or over, or upon attainment of age 50 if the
beneficiary is under that age at the date of the member's death. In the
case of survivors of a member whose death occurred between November 1,
1970 and July 15, 1971, the payment of the survivors annuity shall begin
upon October 1, 1977, if the beneficiary is then 50 years of age or
older, or upon the attainment of age 50 if the beneficiary is under that
age on October 1, 1977.
If an eligible child or children, under the care of the spouse also
survive the member, the survivors annuity shall begin immediately
without regard to whether the beneficiary has attained age 50.
Benefits under this Section shall accrue and be payable for whole
calendar months, beginning on the first day of the month after the
initiating event occurs and ending on the last day of the month in which
the terminating event occurs.
(d) A survivor annuity beneficiary means:
(1) A spouse of a member or annuitant if:
(i) in the case of a member or annuitant who dies
| | before the effective date of this amendatory Act of the 91st General Assembly, the current marriage with the member or annuitant was in effect for at least one year at the date of death or withdrawal, whichever first occurs; or
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(ii) in the case of a member or annuitant who
| | dies on or after the effective date of this amendatory Act of the 91st General Assembly, the current marriage with the member or annuitant was in effect for at least one year immediately prior to the date of death, regardless of the date of withdrawal.
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(2) An unmarried child under age 18 (under age 22 if
| | a full-time student) of the member or annuitant; an unmarried stepchild under age 18 (under age 22 if a full-time student) who has been such for at least one year at the date of the member's death or at least one year at the date of withdrawal, whichever first occurs; an unmarried adopted child under age 18 (under age 22 if a full-time student); and an unmarried child over age 18 if he or she is dependent by reason of a physical or mental disability, so long as the physical or mental disability continues. For purposes of this subsection, disability means inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.
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(3) A dependent parent of the member or annuitant; a
| | dependent step-parent by a marriage contracted before the member or annuitant attained age 18; or a dependent adopting parent by whom the member or annuitant was adopted before he or she attained age 18.
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(e) Payment of a survivors annuity to a beneficiary terminates upon:
(1) remarriage before age 55 that occurs before the effective date of this
amendatory Act of the 91st General Assembly or death, if the beneficiary
is a spouse; (2) marriage or death, if the beneficiary is
a child; or (3) remarriage before age 55 or death, if the
beneficiary is a parent.
Remarriage of a prospective beneficiary prior
to the attainment of age 50 disqualifies the beneficiary for the annuity
expectancy hereunder, if the remarriage occurs before the effective
date of this amendatory Act of the 91st General Assembly.
Termination due to marriage or remarriage shall be permanent,
regardless of any future changes in marital status.
The substantive changes made to this subsection by this amendatory Act
of the 91st General Assembly (pertaining to remarriage prior to age 55 or 50)
apply without regard to whether the deceased participant or annuitant was in
service on or after the effective date of this amendatory Act.
Any person whose survivors annuity was terminated during 1978 or
1979 due to remarriage at age 55 or over shall be eligible to apply, not later
than July 1, 1990, for a resumption of that annuity, to begin on July 1, 1990.
(f) The term "dependent" relating to a survivors annuity means a
beneficiary of a survivors annuity who was receiving from the member at
the date of the member's death at least 1/2 of the support for
maintenance including board, lodging, medical care and like living costs.
(g) If there is no eligible spouse surviving the member, or if a survivors
annuity beneficiary includes a spouse who dies or is disqualified by
remarriage, the annuity is payable to an unmarried child or
children. If at the date of death of the member there is no spouse or
unmarried child, payments shall be made to a dependent parent or parents.
If no eligible survivors annuity beneficiary survives the member, the
non-occupational death benefit is payable in the manner provided in this
Article.
(h) Survivor benefits do not affect any reversionary annuity.
(i) If a survivors annuity beneficiary becomes entitled to a widow's
annuity or one or more survivors annuities or both such annuities, the
beneficiary shall elect to receive only one of such annuities.
(j) Contributing creditable service under the State Universities Retirement
System and the Teachers' Retirement System of the State of
Illinois shall be considered in determining whether the member has met the
contributing service requirements of this Section.
(k) In lieu of the Survivor's Annuity described in this Section, the spouse
of the member has the option to select the Nonoccupational Death
Benefit described in this Article, provided the spouse is the sole survivor
and the sole nominated beneficiary of the member.
(l) The changes made to this Section and Sections 14-118, 14-119, and
14-128 by this amendatory Act of 1997, relating to benefits for certain
unmarried children who are full-time students under age 22, apply without
regard to whether the deceased member was in service on or after the effective
date of this amendatory Act of 1997. These changes do not authorize the
repayment of a refund or a re-election of benefits, and any benefit or increase
in benefits resulting from these changes is not payable retroactively for any
period before the effective date of this amendatory Act of 1997.
(Source: P.A. 95-279, eff. 1-1-08.)
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40 ILCS 5/14-121 (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
Sec. 14-121. Amount of survivors annuity. A survivors annuity
beneficiary shall be entitled upon death of the member to a single sum
payment of $1,000, payable pro rata among all persons entitled thereto,
together with a survivors annuity payable at the rates and under the
conditions specified in this Article.
(a) If the survivors annuity beneficiary is a spouse, the survivors
annuity shall be 30% of final average compensation subject to a maximum
payment of $400 per month.
(b) If an eligible child or children under the care of a spouse also
survives the member, such spouse as natural guardian of the child or
children shall receive, in addition to the foregoing annuity, 20% of final
average compensation on account of each such child and 10% of final average
compensation divided pro rata among such children, subject to a maximum
payment on account of all survivor annuity beneficiaries of $600 per month,
or 80% of the member's final average compensation, whichever is the lesser.
(c) If the survivors annuity beneficiary or beneficiaries consists of
an unmarried child or children, the amount of survivors annuity shall be
20% of final average compensation to each child, and 10% of final average
compensation divided pro rata among all such children entitled to such annuity,
subject to a maximum payment to all children combined of $600 per month
or 80% of the member's final average compensation, whichever is the lesser.
(d) If the survivors annuity beneficiary is one or more dependent parents,
the annuity shall be 20% of final average compensation to each parent and
10% of final average compensation divided pro rata among the parents who
qualify for this annuity, subject to a maximum payment to both dependent
parents of $400 per month.
(e) The survivors annuity to the spouse, children or dependent parents of
a member whose death occurs after the date of last withdrawal, or after
retirement, or while in service following reentry into service after
retirement but before completing 1 1/2 years of additional creditable
service, shall not exceed the lesser of 80% of the member's earned
retirement annuity at the date of death or the maximum previously
established in this Section.
(f) In applying the limitation prescribed on the combined payments to
2 or more survivors annuity beneficiaries, the annuity on account of each
beneficiary shall be reduced pro rata until such time as the number of
beneficiaries makes the reduction no longer applicable.
(g) Except as otherwise provided in this subsection (g), a survivors annuity payable on account of
any covered employee who has
been a covered employee for at
least 18 months at date of death or last withdrawal, whichever is the later,
shall be reduced by 1/2 of the survivors benefits to which his beneficiaries
are eligible under the federal Social Security Act, except that (1) the
survivors annuity payable under this Article shall not be reduced by any
increase under that Act which occurs after the offset required by this
subsection is first applied to that annuity, (2) for benefits granted on or
after January 1, 1992, the offset under this subsection (g) shall not exceed
50% of the amount of survivors annuity otherwise payable.
Beginning July 1, 2009, the offset under this subsection (g) shall no
longer be applied to any survivors annuity of any person who began receiving retirement benefits or a survivors annuity prior to January 1, 1998.
Beginning July 1, 2009, the offset under this subsection (g) shall no longer be applied to the survivors annuity of any person who began receiving a survivors annuity on or after January 1, 1998 and before the effective date of this amendatory Act of the 95th General Assembly.
Any person who began receiving retirement benefits after January 1, 1998 and before the effective date of this amendatory Act of the 95th General Assembly may, during a one-time election period established by the System, elect to reduce his or her retirement annuity by 3.825% in exchange for not having the offset under this subsection (g) applied to his or her survivors annuity. Any employee in service on the effective date of this amendatory Act of the 95th General Assembly may, at the time of retirement, elect to reduce his or her retirement annuity by 3.825% in exchange for not having the offset under this subsection (g) applied to his or her survivors annuity. If a survivors annuity is payable to the widow of an employee based on the employee's death in service, then the offset under this subsection (g) shall no longer be applied to the survivors annuity. A retiree who elects to reduce his or her retirement annuity under this subsection (g) in exchange for not having the offset applied may make an irrevocable election to eliminate the reduction of his or her retirement annuity if there is a change in marital status due to death or divorce, but the retiree is not entitled to reimbursement of any benefit reduction prior to the election. (h) The minimum payment to a beneficiary hereunder shall be $60 per month,
which shall be reduced in accordance with the limitation prescribed on the
combined payments to all beneficiaries of a member.
(i) Subject to the conditions set forth in Section 14-120, the minimum
total survivors annuity benefit payable to the survivors annuity beneficiaries
of a deceased member or annuitant whose death occurs on or after January
1, 1984, shall be 50% of the amount of retirement annuity that was or would
have been payable to the deceased on the date of death, regardless of the
age of the deceased on such date. If the minimum total benefit provided
by this subsection exceeds the maximum otherwise imposed by this Section,
the minimum total benefit shall nevertheless be payable. Any increase in
the total survivors annuity benefit resulting from the operation of this
subsection shall be divided among the survivors annuity beneficiaries of
the deceased in proportion to their shares of the total survivors annuity
benefit otherwise payable under this Section.
(j) Any survivors annuity beneficiary whose annuity terminates due to any
condition specified in this Article other than death shall be entitled to
a refund of the excess, if any, of the accumulated contributions of the
member plus credited interest over all payments to the member and beneficiary
or beneficiaries, exclusive of the single sum payment of $1,000, provided
no future survivors or reversionary annuity benefits are payable.
(k) Upon the death of the last eligible recipient of a survivors
annuity the excess, if any, of the member's accumulated contributions plus
credited interest over all annuity payments to the member and survivors
exclusive of the single sum payment of $1000, shall be paid to the named
beneficiary of the last eligible survivor, or if none has been named, to
the estate of the last eligible survivor, provided no reversionary annuity
is payable.
(l) On January 1, 1981, any survivor who was receiving a survivors
annuity on or before January 1, 1971, shall have his survivors annuity then
being paid increased by 1% for each full year which has elapsed from the
date the annuity began. On January 1, 1982, any survivor who began receiving
a survivor's annuity after January 1, 1971, but before January 1, 1981,
shall have his survivor's annuity then being paid increased by 1% for each
full year that has elapsed from the date the annuity began.
On January 1, 1987, any survivor who began receiving a survivor's annuity
on or before January 1, 1977, shall have the monthly survivor's annuity
increased by $1 for each full year which has elapsed since the date the
survivor's annuity began.
(m) Beginning January 1, 1990, every survivor's annuity shall be increased
(1) on each January 1 occurring on or after the commencement of the annuity if
the deceased member died while receiving a retirement annuity, or (2) in
other cases, on each January 1 occurring on or after the first anniversary
of the commencement of the annuity, by an amount equal to 3% of the current
amount of the annuity, including any previous increases under this Article.
Such increases shall apply without regard to whether the deceased member
was in service on or after the effective date of Public Act 86-1488,
but shall not accrue for any period prior to January 1, 1990.
(Source: P.A. 95-1043, eff. 3-26-09.)
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40 ILCS 5/14-121.1
(40 ILCS 5/14-121.1) (from Ch. 108 1/2, par. 14-121.1)
Sec. 14-121.1. Required distributions. (a) A person who would be
eligible to receive a widow's or survivor's annuity under this Article but
for the fact that the person has not yet attained age 50, shall be eligible
for a monthly distribution under this subsection (a), provided that the
payment of such distribution is required by federal law.
The distribution shall become payable on (i) July 1, 1987, (ii) December
1 of the calendar year immediately following the calendar year in which the
deceased spouse died, or (iii) December 1 of the calendar year in which the
deceased spouse would have attained age 72, whichever occurs last, and
shall remain payable until the first of the following to occur: (1) the
person becomes eligible to receive a widow's or survivor's annuity under
this Article; (2) the end of the month in which the person
ceases to be eligible to receive a widow's or survivor's annuity upon
attainment of age 50, due to remarriage or death; or (3) the end of the
month in which such distribution ceases to be required by federal law.
The amount of the distribution shall be fixed at the time the
distribution first becomes payable, and shall be calculated in the same
manner as a survivor's annuity under Sections 14-120, 14-121 and 14-122
(or, in the case of a person who has elected to receive a widow's annuity
instead of a survivor's annuity, in the same manner as the widow's annuity
under Sections 14-118 and 14-119), but excluding: (A) any requirement for
an application for the distribution; (B) any automatic annual increases,
supplemental increases, or one-time increases that may be provided by law
for survivor's or widow's annuities; and (C) any lump-sum or death benefit.
(b) For the purpose of this Section, a distribution shall be deemed to be
required by federal law if: (1) directly mandated by federal statute, rule,
or administrative or court decision; or (2) indirectly mandated through
imposition of substantial tax or other penalties for noncompliance.
(c) Notwithstanding Section 1-103.1 of this Code, a member need not be
in service on or after the effective date of this amendatory Act of 1989
for the member's surviving spouse to be eligible for a
distribution under this Section.
(Source: P.A. 102-210, eff. 7-30-21.)
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40 ILCS 5/14-122
(40 ILCS 5/14-122) (from Ch. 108 1/2, par. 14-122)
Sec. 14-122.
Limitation on widow's and survivors annuity.
(a) If a beneficiary
also qualifies for a widow's annuity or
survivors annuity under Articles 2, 15, 16, 17 or 18 of this Code, and
the combined annuities payable thereunder to a widow's annuity or
survivors annuity beneficiary, because of established pension credits,
exceed the highest annuity to such a beneficiary under the aforesaid
Articles, the annuity payable by this system to the eligible beneficiary
shall be reduced to an amount which when added to the annuity payable by
such other system or systems would equal such highest annuity.
(b) If any of the other retirement systems involved provide for a
similar adjustment, the respective annuities shall be reduced in
proportion to the ratio which the amount of each proportional annuity
bears to the aggregate of all proportional annuities.
(c) In the event a beneficiary of such other system or systems
elects to waive a widow's or survivors annuity in favor of a lump sum or
death benefit payment, this system shall, for the adjustment of the
widow's or survivors annuity under this section, assume that the
beneficiary had been entitled to an annuity as an actuarial equivalent
at the date of death of the member or annuitant of such lump sum or
death benefit payment as of attained age of the beneficiary at such date
according to the actuarial tables in use by the system.
(Source: P.A. 80-841.)
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40 ILCS 5/14-123
(40 ILCS 5/14-123) (from Ch. 108 1/2, par. 14-123)
Sec. 14-123. Occupational disability benefits. A member who becomes incapacitated to perform the duties of his position
as the proximate result of bodily injuries
sustained or a hazard undergone while in the performance and within the
scope of the member's duties, shall receive an occupational disability benefit;
provided:
(a) application is made after the date that such | | disability results in the loss of pay, or after the date that the Illinois Workers' Compensation Commission rules on the application for an occupational disability, or after the occurrence of disablement if an occupational disease; and
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(b) proper proof is received from one or more
| | licensed health care professionals designated by the Board certifying that the member is mentally or physically incapacitated.
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The benefit shall be 75% of the member's final average compensation at
date of disability and shall be payable until the first of the following
dates occurs:
(1) the date on which disability ceases;
(2) the date on which the member engages in gainful
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(3) the end of the month in which the member attains
| | age 65, in the case of benefits commencing prior to attainment of age 60;
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(4) the end of the month following the fifth
| | anniversary of the effective date of the benefit, or of the temporary disability benefit if one was received, in the case of benefits commencing on or after attainment of age 60; or
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(5) the end of the month in which the death of the
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At the end of the month in which the benefits cease as prescribed in paragraphs
(3) or (4) above, if the member is still disabled, he shall become entitled
to a retirement annuity and the minimum period of service prescribed for
the receipt of such annuity shall be waived.
In the event that a temporary disability benefit has been received, the
benefit paid under this Section shall be subject to adjustment by the Board
under Section 14-123.1.
The Board shall prescribe rules and regulations governing the filing of
claims for occupational disability benefits, and the investigation, control
and supervision of such claims.
(Source: P.A. 101-54, eff. 7-12-19.)
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40 ILCS 5/14-123.1
(40 ILCS 5/14-123.1) (from Ch. 108 1/2, par. 14-123.1)
Sec. 14-123.1. Temporary disability benefit.
(a) A member who has at least 18 months of creditable service and who
becomes physically or mentally incapacitated to perform the duties of his
position shall receive a temporary disability benefit, provided that:
(1) the agency responsible for determining the | | liability of the State (i) has formally denied all employer-paid temporary total disability benefits under the Workers' Compensation Act or the Workers' Occupational Diseases Act and an appeal of that denial is pending before the Illinois Workers' Compensation Commission, or (ii) has granted and then terminated for any reason an employer-paid temporary total disability benefit and the member has filed a petition for a hearing under Section 19(b) or Section 19(b-1) of the Workers' Compensation Act or Section 19(b) or Section 19(b-1) of the Workers' Occupational Diseases Act;
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(2) application is made after the date that the
| | disability results in loss of pay, and after the date the agency responsible for determining the liability of the State under the Workers' Compensation Act or Workers' Occupational Diseases Act has formally denied or terminated the employer-paid temporary total disability benefit; and
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(3) proper proof is received from one or more
| | licensed health care professionals designated by the Board certifying that the member is mentally or physically incapacitated.
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(b) In the case of a denial of benefits,
the temporary disability benefit shall begin to accrue on the 31st
day of absence from work on account of disability, but the benefit shall
not become actually payable to the member until the expiration of 31
days from the day upon which the member last received or had a
right to receive any compensation.
In the case of termination of an employer-paid temporary total disability
benefit, the temporary disability benefit under this Section shall be
calculated from the day following the date of termination of the employer-paid
benefit or the 31st day of absence from work on account of disability,
whichever is later, but shall not become payable to the member until (i) the
member's right to an employer-paid temporary total disability benefit is denied
as a result of the hearing held under Section 19(b) or Section 19(b-1) of the Workers'
Compensation Act or Section 19(b) or Section 19(b-1) of the Workers' Occupational Diseases Act
or (ii) the expiration of 30 days from the date of termination of the
employer-paid benefit, whichever occurs first. If a terminated employer-paid
temporary total disability benefit is resumed or replaced with another
employer-paid disability benefit and the resumed or replacement benefit is
later terminated and the member again files a petition for a hearing
under Section 19(b) or Section 19(b-1) of the Workers' Compensation Act or Section 19(b) or Section 19(b-1) of
the Workers' Occupational Diseases Act, the member may again become eligible to
receive a temporary disability benefit under this Section. The waiting period
before the temporary disability benefit under this Section becomes payable
applies each time that the benefit is reinstated.
The benefit shall continue to accrue until the first of the following events
occurs:
(1) the disability ceases;
(2) the member engages in gainful employment;
(3) the end of the month in which the member attains
| | age 65, in the case of benefits commencing prior to attainment of age 60;
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(4) the end of the month following the fifth
| | anniversary of the effective date of the benefit in the case of benefits commencing on or after attainment of age 60;
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(5) the end of the month in which the death of the
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(6) the end of the month in which the aggregate
| | period for which temporary disability payments have been made becomes equal to 1/2 of the member's total period of creditable service, not including the time for which he has received a temporary disability benefit or nonoccupational disability benefit; for purposes of this item (6) only, in the case of a member to whom Section 14-108.2a or 14-108.2b applies and who, at the time disability commences, is performing services for the Illinois Department of Public Health or the Illinois State Police relating to the transferred functions referred to in that Section and has less than 10 years of creditable service under this Article, the member's "total period of creditable service" shall be augmented by an amount equal to (i) one half of the member's period of creditable service in the Fund established under Article 8 (excluding any creditable service over 20 years), minus (ii) the amount of the member's creditable service under this Article;
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(7) a payment is made on the member's claim pursuant
| | to a determination made by the agency responsible for determining the liability of the State under the Workers' Compensation Act or the Workers' Occupational Diseases Act;
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(8) a final determination is made on the member's
| | claim by the Illinois Workers' Compensation Commission.
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(c) The temporary disability benefit shall be 50% of the member's final
average compensation at the date of disability.
If a covered employee is eligible under the Social Security Act for a
disability benefit before attaining the Social Security full retirement age, or a retirement benefit on or
after attaining the Social Security full retirement age, then the amount of the member's temporary
disability benefit shall be reduced by the amount of primary benefit the
member is eligible to receive under the Social Security Act, whether or not
such eligibility came about as the result of service as a covered employee
under this Article. The Board may make such reduction pending a
determination of eligibility if it appears that the employee may be so
eligible, and shall make an appropriate adjustment if necessary after such
determination has been made. The amount of temporary disability benefit
payable under this Article shall not be reduced by reason of any increase
in benefits payable under the Social Security Act which occurs after the
reduction required by this paragraph has been applied. As used in this subsection, "Social Security full retirement age" means the age at which an individual is eligible to receive full Social Security retirement benefits.
(d) The temporary disability benefit provided under this Section is
intended as a temporary payment of occupational or nonoccupational
disability benefit, whichever is appropriate, in cases in which the
occupational or nonoccupational character of the disability has not been
finally determined.
When an employer-paid disability benefit is paid or resumed, the Board
shall calculate the benefit that is payable under Section 14-123 and shall
deduct from the benefit payable under Section 14-123 the amounts already paid
under this Section; those amounts shall then be treated as if they had been
paid under Section 14-123.
When a final determination of the character of the
disability has been made by the Illinois Workers' Compensation Commission, or by
settlement between the parties to the disputed claim, the Board shall
calculate the benefit that is payable under Section 14-123 or 14-124,
whichever is applicable, and shall deduct from such benefit the amounts
already paid under this Section; such amounts shall then be treated as if
they had been paid under such Section 14-123 or 14-124.
(e) Any excess benefits paid under this Section shall be subject to recovery
by the System from benefits payable under the Workers' Compensation Act or the
Workers' Occupational Diseases Act or from third parties as provided in Section
14-129, or from any other benefits payable either to the member or on his
behalf under this Article. A member who accepts benefits under this Section
acknowledges and authorizes these recovery rights of the System.
(f) Service credits under the State Universities Retirement System and
the Teachers' Retirement System of the State of Illinois shall be
considered for the purposes of determining temporary disability benefit
eligibility under this Section, and for determining the total period of
time for which such benefits are payable.
(g) The Board shall prescribe rules and regulations governing the filing
of claims for temporary disability benefits, and the investigation, control
and supervision of such claims.
(h) References in this Section to employer-paid benefits include benefits
paid for by the State, either directly or through a program of insurance or
self-insurance, whether paid through the member's own department or through
some other department or entity; but the term does not include benefits paid by
the System under this Article.
(Source: P.A. 101-54, eff. 7-12-19; 102-538, eff. 8-20-21.)
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40 ILCS 5/14-124
(40 ILCS 5/14-124) (from Ch. 108 1/2, par. 14-124)
Sec. 14-124. Nonoccupational disability benefit. A member with at least
1 1/2 years of creditable service may be granted a nonoccupational disability
benefit, if:
(1) application for the benefit is made to the system | | by the member in writing after the commencement of disability;
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(2) the member is found upon medical examination to
| | be mentally or physically incapacitated to perform the duties of the member's position;
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(3) the disability resulted from a cause other than
| | an injury or illness sustained in connection with the member's performance of duty as a State employee;
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(4) the member has been granted a leave of absence
| | for disability at the time of commencement of disability. Renewal of a disability leave of absence shall not be required for the continued payment of benefits; and
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(5) the member has used all accumulated sick leave
| | available at the beginning of the leave of absence for disability.
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The benefit shall begin to accrue on the latest of (i) the 31st
day of absence from work on account of
disability (including any periods of such absence for which sick pay was
received); or (ii) the day following the day on which the member last receives
or has a right to receive any compensation as an employee,
including any sick pay. The benefit shall continue to accrue until the
first of the following to occur:
(a) the date on which disability ceases;
(b) the end of the month in which the member attains
| | age 65 in the case of benefits commencing prior to attainment of age 60;
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(c) the end of the month following the fifth
| | anniversary of the effective date of the benefit, or of the temporary disability benefit if one was received, in the case of benefits commencing on or after attainment of age 60;
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(d) the end of the month in which the aggregate
| | period for which non-occupational disability and temporary disability benefit payments have been made becomes equal to 1/2 of the member's total period of creditable service, not including the time during which he has received a temporary disability benefit or nonoccupational disability benefit; for purposes of this item (d) only, in the case of a member to whom Section 14-108.2a or 14-108.2b applies and who, at the time disability commences, is performing services for the Illinois Department of Public Health or the Illinois State Police relating to the transferred functions referred to in that Section and has less than 10 years of creditable service under this Article, the member's "total period of creditable service" shall be augmented by an amount equal to (i) one half of the member's period of creditable service in the Fund established under Article 8 (excluding any creditable service over 20 years), minus (ii) the amount of the member's creditable service under this Article;
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(e) the date on which the member engages in gainful
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(f) the end of the month in which the death of the
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If disability has ceased and the member again becomes disabled within
60 days from date of resumption of State employment, and if the
disability is due to the same cause for which he received
nonoccupational disability benefit immediately preceding such reentry
into service, the 30 days waiting period prescribed for the receipt of
benefits is waived as to such new period of disability.
A member shall be considered disabled only when the board has
received:
(a) a written certificate by one or more licensed
| | health care professionals designated by the board, certifying that the member is disabled and unable properly to perform the duties of his position at the time of disability; and
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(b) the employee certifies that he is not and has not
| | been engaged in gainful employment.
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The board shall prescribe rules and regulations governing the filing
of claims for nonoccupational disability benefits, and the
investigation, control and supervision of such claims.
Service credits under the State Universities Retirement System and
the Teachers' Retirement System of the State of Illinois shall be
considered for the purposes of nonoccupational disability benefit
eligibility under this Article and for the total period of time for
which such benefits are payable.
(Source: P.A. 101-54, eff. 7-12-19; 102-538, eff. 8-20-21.)
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40 ILCS 5/14-124.5 (40 ILCS 5/14-124.5) Sec. 14-124.5. Reports submitted to the System by licensed health care professionals. A licensed health care professional must submit his or her registration number on all reports submitted to the System.
(Source: P.A. 101-54, eff. 7-12-19.) |
40 ILCS 5/14-125
(40 ILCS 5/14-125) (from Ch. 108 1/2, par. 14-125)
Sec. 14-125. Nonoccupational disability benefit; amount of. The
nonoccupational disability benefit shall be 50% of the member's final
average compensation at the time disability occurred. In the case of a
member whose benefit was resumed due to the same disability, the amount of
the benefit shall be the same
as that last paid before resumption of State employment. In the event
that a temporary disability benefit has been received, the nonoccupational
disability benefit shall be subject to adjustment by the Board under Section 14-123.1.
If a covered employee is eligible for a disability benefit before attaining the Social Security full retirement
age or a retirement benefit on or after attaining the Social Security full retirement age under the federal
Social Security Act, the amount of the member's nonoccupational disability
benefit shall be reduced by the amount of primary benefit the member would
be eligible to receive
under such Act, whether or not entitlement thereto came
about as the result of service as a covered employee under this Article.
The Board may make such reduction if it appears that the employee may be
so eligible pending determination of eligibility and make an appropriate
adjustment if necessary after such determination. The amount of any
nonoccupational
disability benefit payable under
this Article shall not be reduced by reason of any increase under the federal
Social Security Act which occurs after the offset required by this
Section is first applied to that benefit.
As used in this Section, "Social Security full retirement age" means the age at which an individual is eligible to receive full Social Security retirement benefits. (Source: P.A. 101-54, eff. 7-12-19; 102-558, eff. 8-20-21.)
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40 ILCS 5/14-125.1
(40 ILCS 5/14-125.1) (from Ch. 108 1/2, par. 14-125.1)
Sec. 14-125.1.
Automatic increase in disability benefit.
Each
disability benefit payable under Section 14-123 or 14-124 shall be
increased by 7% of the original fixed amount of such benefit on January 1,
1986 or January 1 following the fourth anniversary of the granting of the
benefit, whichever occurs later. On each January 1 following the 7%
increase, but not earlier than January 1, 1991, the disability benefit
shall be increased by 3% of the current
amount of the benefit, including prior increases under this Article.
(Source: P.A. 86-1488.)
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40 ILCS 5/14-126
(40 ILCS 5/14-126) (from Ch. 108 1/2, par. 14-126)
Sec. 14-126.
Nonoccupational disability benefit-Rights on expiration-Retirement
annuity option on re-entry. Any member having 15 or more years of creditable
service, and having attained at least age 55, or having 20 or more years
of creditable service and having attained at least age 50, who, after receiving
nonoccupational disability benefit for the maximum period of time specified
herein is still disabled for service, shall be entitled to receive a retirement
annuity beginning the first of the month following application, without
regard to whether the member has attained age 60.
If a member having 15 but less than 20 years of creditable service is under
age 55 when nonoccupational disability benefits terminate, and the member
has been continuously disabled for service, the member is entitled upon
application to the retirement annuity upon the first of the month after
attainment of age 55.
If a member having 20 or more years of creditable service is under age
50 when nonoccupational disability benefits terminate, and the member has
been continuously disabled for service, the member is entitled upon application
to the retirement annuity beginning upon the first of the month after attainment
of age 50.
As an option to the computation of a retirement annuity in the manner provided
in this Article, if a person who retires on a retirement annuity prior to
age 60 under the provisions of this Section re-enters State employment,
that person may refund to the system the amount theretofore received as
a retirement annuity and upon subsequently retiring from State service shall
be entitled to a retirement annuity computed as though that member had not
previously received such annuity.
(Source: P.A. 80-841.)
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40 ILCS 5/14-126.5 (40 ILCS 5/14-126.5) Sec. 14-126.5. Retirement annuity option for termination of ordinary disability benefit. A member who is subject to the provisions of Section 1-160 whose disability continues but whose disability benefit is either terminated due to attaining age 65 or terminated after 5 years because the ordinary disability benefit commenced after age 60 shall immediately qualify to begin receiving a retirement annuity without the reduction provided under subsection (d) of Section 1-160 if the member has earned at least 10 years of creditable service.
(Source: P.A. 103-553, eff. 8-11-23.) |
40 ILCS 5/14-127
(40 ILCS 5/14-127) (from Ch. 108 1/2, par. 14-127)
Sec. 14-127. Credit during disability. During
any period of disability for which
nonoccupational, occupational or temporary disability benefits are
paid, there shall be credited to the account of the disabled member amounts
representing the contributions the member would have made had he or she remained in active
employment in the same position and at the rate of compensation in effect
at the time disability occurred. Service credit shall also be granted
during any such
periods of disability for all purposes of this Article except for
measuring the duration of nonoccupational and temporary disability
benefits. The resolution of a temporary disability
benefit into an occupational or nonoccupational disability benefit shall
not entitle the disabled member to receive duplicate contribution and
service credit under this Section for the period during which the temporary
disability benefit was paid.
(Source: P.A. 101-54, eff. 7-12-19.)
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40 ILCS 5/14-128
(40 ILCS 5/14-128) (from Ch. 108 1/2, par. 14-128)
Sec. 14-128. Occupational death benefit. An occupational death
benefit is provided for a member of the System whose death, prior to
retirement, is the proximate result of bodily injuries sustained or a
hazard undergone while in the performance and within the scope of the
member's duties.
(a) Conditions for payment.
Exclusive of the lump sum payment provided for herein, all annuities
under this Section shall accrue and be payable for complete calendar
months, beginning on the first day of the month next following the month
in which the initiating event occurs and ending on the last day of the
month in which the terminating event occurs.
The following named survivors of the member
may be eligible for an annuity under this Section:
(i) The member's spouse.
(ii) An unmarried child of the member under age 18 | | (under age 22 if a full-time student); an unmarried stepchild under age 18 (under age 22 if a full-time student) who has been such for at least one year at the date of the member's death; an unmarried adopted child under age 18 (under age 22 if a full-time student); and an unmarried child over age 18 who is dependent by reason of a physical or mental disability, for so long as such physical or mental disability continues. For the purposes of this Section disability means inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.
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(iii) If no spouse or eligible children survive: a
| | dependent parent of the member; a dependent step-parent by a marriage contracted before the member attained age 18; or a dependent adopting parent by whom the member was adopted before he or she attained age 18.
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The term "dependent" relating to an occupational death
benefit means a survivor of the member who was receiving from the member
at the date of the member's death at least 1/2 of the support for maintenance
including board, lodging, medical care and like living costs.
Payment of the annuity shall continue until the occurrence of the following:
(1) remarriage before age 55 that occurs before the
| | effective date of this amendatory Act of the 91st General Assembly or death, in the case of a surviving spouse;
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(2) attainment of age 18 or termination of
| | disability, death, or marriage, in the case of an eligible child;
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(3) remarriage before age 55 or death, in the case of
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If none of the aforementioned beneficiaries is living at the date of
death of the member, no occupational death benefit shall be payable, but
the nonoccupational death benefit shall be payable as provided in this
Article.
The change made to this subsection by this amendatory Act of the 91st
General Assembly (pertaining to remarriage prior to age 55) applies without
regard to whether the deceased member was in service on or after the effective
date of this amendatory Act.
(b) Amount of benefit.
The member's accumulated contributions plus credited interest shall
be payable in a lump sum to such person as the member has nominated by
written direction, duly acknowledged and filed with the Board, or if no
such nomination to the estate of the member. When an annuitant is
re-employed by a Department, the accumulated contributions plus credited
interest payable on the member's account shall, if the member has not
previously elected a reversionary annuity, consist of the excess, if
any, of the member's total accumulated contributions plus credited
interest for all creditable service over the total amount of all
retirement annuity payments received by the member prior to death.
In addition to the foregoing payment, an annuity is provided for
eligible survivors as follows:
(1) If the survivor is a spouse only, the annuity
| | shall be 50% of the member's final average compensation.
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(2) If the spouse has in his or her care an eligible
| | child or children, the annuity shall be increased by an amount equal to 15% of the final average compensation on account of each such child, subject to a limitation on the combined annuities to a surviving spouse and children of 75% of final average compensation.
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(3) If there is no surviving spouse, or if the
| | surviving spouse dies or remarries while a child remains eligible, then each such child shall be entitled to an annuity of 15% of the deceased member's final average compensation, subject to a limitation of 50% of final average compensation to all such children.
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(4) If there is no surviving spouse or eligible
| | children, then an annuity shall be payable to the member's dependent parents, equal to 25% of final average compensation to each such beneficiary.
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If any annuity payable under this Section is less than the corresponding
survivors annuity, the beneficiary or beneficiaries of the annuity under this
Section may elect to receive the survivors annuity and the nonoccupational
death benefit provided for in this Article in lieu of the annuity provided
under this Section.
(c) Occupational death claims pending adjudication by the Illinois Workers' Compensation
Commission or a ruling by the agency responsible for determining the liability
of the State under the "Workers' Compensation Act" or "Workers' Occupational
Diseases Act" shall be payable under Sections 14-120 and 14-121 until a ruling or adjudication
occurs, if the beneficiary or beneficiaries: (1) meet all conditions for
payment as prescribed in this Article; and (2) execute an assignment of
benefits payable as a result of adjudication by the Illinois Workers' Compensation Commission or
a ruling by the agency responsible for determining the liability of the State
under such Acts. The assignment shall be made to the System and shall be for
an amount equal to the excess of benefits paid under Sections 14-120 and
14-121 over benefits
payable as a result of adjudication of the workers' compensation claim
computed from the date of death of the member.
(d) Every occupational death annuity payable under this Section shall
be increased on each January 1 occurring on or after (i) January 1, 1990, or
(ii) the first anniversary of the commencement of the annuity, whichever
occurs later, by an amount equal to 3% of the current amount of the
annuity, including any previous increases under this Article, without
regard to whether the deceased member was in service on the effective date
of this amendatory Act of 1991.
(Source: P.A. 95-279, eff. 1-1-08.)
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40 ILCS 5/14-129
(40 ILCS 5/14-129) (from Ch. 108 1/2, par. 14-129)
Sec. 14-129. Determination of compensability - Offset - Subrogation. Except as provided in Section 14-128 of this Act with respect to occupational
death claims, and except as provided in Section 14-123.1 for temporary
disability benefits, before the board takes any action on an application
for an occupational
disability or occupational death benefit, adjudication by the Illinois Workers' Compensation
Commission or a ruling by the agency responsible for
determining the liability of the State under the Workers' Compensation
Act or the Workers' Occupational Diseases Act shall be had on a claim
to establish that the disability or death was incurred while in the
performance and within the scope of the member's duties, under the terms
of the Illinois Workers' Compensation Act or the Workers' Occupational
Diseases Act, whichever applies. The system shall make payment of an
occupational disability or occupational death
benefit only if the claim is found to be compensable under one or
both of those
Acts.
Any amounts provided for a member or his dependents under those Acts
shall be applied for the period of time prescribed by such Acts for
payments thereunder as an offset to any
occupational disability or
occupational death benefit or to a survivors annuity or annuities
provided in this Article in such manner as may be prescribed by the
rules of the board.
In those cases where the injury or death for which
an occupational
disability or death benefit is payable under this Article was caused
under circumstances creating a legal liability for damages on the part
of some person other than the employer, all of the rights
and privileges, including the right to notice of suit brought against
such other person and the right to commence or join in such suit, as
given the employer, together with the conditions or obligations imposed
under paragraph (b) of Section 5 of the "Workers' Compensation Act",
are also given and granted to the System, to the end that the System
created by this Article may be paid or reimbursed for the amount of
temporary disability, occupational disability or death benefit paid or
to be paid by the
System to the injured employee, or his personal representative in the
event of death, including any contribution amounts credited to the
account of the member under Section 14-127, out of any
judgment, settlement, or payment
for such injury or death obtained by such injured employee or his
personal representative from such other person, or be paid or reimbursed
for such amount paid or to be paid by the System to the surviving spouse
or children of such employee by virtue of the injury or the death of
such employee from such injury.
(Source: P.A. 93-721, eff. 1-1-05.)
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40 ILCS 5/14-130
(40 ILCS 5/14-130) (from Ch. 108 1/2, par. 14-130)
Sec. 14-130. Refunds; rules.
(a) Upon withdrawal a member is entitled to receive, upon written
request, a refund of the member's contributions, including credits granted
while in receipt of disability benefits, without credited interest. The
board, in its discretion may withhold payment of the refund of a member's
contributions for a period not to exceed 1 year after the member has ceased
to be an employee.
For purposes of this Section, a member will be considered to have
withdrawn from service if a change in, or transfer of, his position
results in his becoming ineligible for continued membership in this
System and eligible for membership in another public retirement system
under this Act.
(b) A member receiving a refund forfeits and relinquishes all
accrued rights in the System, including all accumulated creditable
service. If the person again becomes a member of the System and
establishes at least 2 years of creditable service, the member may repay
all the moneys previously refunded or a portion of the moneys previously refunded representing contributions for one or more whole months of creditable service. If a member repays a portion of moneys previously refunded, he or she may later repay some or all of the remaining portion of those previously refunded moneys. However, a former member may restore
credits previously forfeited by acceptance of a refund without returning to
service by applying in writing and repaying to the System, by April 1,
1993, the amount of the refund plus regular interest calculated from the
date of refund to the date of repayment.
The repayment of refunds issued prior to January 1, 1984 shall consist
of the amount refunded plus 5% interest per annum compounded annually for
the period from the date of the refund to the end of the month in which
repayment is made. The repayment of refunds issued after January 1, 1984
shall consist of the amount refunded plus regular interest for the period
from the date of refund to the end of the month in which repayment is made.
The repayment of the refund of a person who accepts an alternative retirement cancellation payment under Section 14-108.5 shall consist of the entire amount paid to the person under subsection (c) of Section 14-108.5 plus regular interest for the period from the date of the refund to the end of the month in which repayment is made. However, in the case of a refund that is repaid in a lump sum between
January 1, 1991 and July 1, 1991, repayment shall consist of the amount
refunded plus interest at the rate of 2.5% per annum compounded annually
from the date of the refund to the end of the month in which repayment is made.
Upon repayment, the member shall receive credit for the
service for which the refund has been repaid, and the corresponding member contributions and regular interest that was forfeited by
acceptance of the refund, as well as regular interest for the period of
non-membership. Such repayment shall be made in full before retirement
either in a lump sum or in installment payments in accordance with such
rules as may be adopted by the board.
(b-5) The Board may adopt rules governing the repayment of refunds
and establishment of credits in cases involving awards of back pay or
reinstatement. The rules may authorize repayment of a refund in installment
payments and may waive the payment of interest on refund amounts repaid in
full within a specified period.
(c) A member no longer in service who is unmarried and does not have an eligible survivors annuity
beneficiary on the date of application therefor is
entitled to a refund of contributions for widow's annuity or survivors
annuity purposes, or both, as the case may be, without interest. A widow's
annuity or survivors annuity shall not be payable upon the death of a person
who has received this refund, unless prior to that death the amount of the
refund has been repaid to the System, together with regular interest from the
date of the refund to the date of repayment.
(d) Any member who has service credit in any position for which an
alternative retirement annuity is provided and in relation to which an
increase in the rate of employee contribution is required, shall be
entitled to a refund, without interest, of that part of the member's
employee contribution which results from that increase in the employee
rate if the member does not qualify for that alternative retirement
annuity at the time of retirement.
(Source: P.A. 93-839, eff. 7-30-04; 94-455, eff. 8-4-05.)
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40 ILCS 5/14-131 (40 ILCS 5/14-131) Sec. 14-131. Contributions by State. (a) The State shall make contributions to the System by appropriations of amounts which, together with other employer contributions from trust, federal, and other funds, employee contributions, investment income, and other income, will be sufficient to meet the cost of maintaining and administering the System on a 90% funded basis in accordance with actuarial recommendations. For the purposes of this Section and Section 14-135.08, references to State contributions refer only to employer contributions and do not include employee contributions that are picked up or otherwise paid by the State or a department on behalf of the employee. (b) The Board shall determine the total amount of State contributions required for each fiscal year on the basis of the actuarial tables and other assumptions adopted by the Board, using the formula in subsection (e). The Board shall also determine a State contribution rate for each fiscal year, expressed as a percentage of payroll, based on the total required State contribution for that fiscal year (less the amount received by the System from appropriations under Section 8.12 of the State Finance Act and Section 1 of the State Pension Funds Continuing Appropriation Act, if any, for the fiscal year ending on the June 30 immediately preceding the applicable November 15 certification deadline), the estimated payroll (including all forms of compensation) for personal services rendered by eligible employees, and the recommendations of the actuary. For the purposes of this Section and Section 14.1 of the State Finance Act, the term "eligible employees" includes employees who participate in the System, persons who may elect to participate in the System but have not so elected, persons who are serving a qualifying period that is required for participation, and annuitants employed by a department as described in subdivision (a)(1) or (a)(2) of Section 14-111. (c) Contributions shall be made by the several departments for each pay period by warrants drawn by the State Comptroller against their respective funds or appropriations based upon vouchers stating the amount to be so contributed. These amounts shall be based on the full rate certified by the Board under Section 14-135.08 for that fiscal year. From March 5, 2004 (the effective date of Public Act 93-665) through the payment of the final payroll from fiscal year 2004 appropriations, the several departments shall not make contributions for the remainder of fiscal year 2004 but shall instead make payments as required under subsection (a-1) of Section 14.1 of the State Finance Act. The several departments shall resume those contributions at the commencement of fiscal year 2005. (c-1) Notwithstanding subsection (c) of this Section, for fiscal years 2010, 2012, and each fiscal year thereafter, contributions by the several departments are not required to be made for General Revenue Funds payrolls processed by the Comptroller. Payrolls paid by the several departments from all other State funds must continue to be processed pursuant to subsection (c) of this Section. (c-2) Unless otherwise directed by the Comptroller under subsection (c-3), the Board shall submit vouchers for payment of State contributions to the System for the applicable month on the 15th day of each month, or as soon thereafter as may be practicable. The amount vouchered for a monthly payment shall total one-twelfth of the fiscal year General Revenue Fund contribution as certified by the System pursuant to Section 14-135.08 of this Code. (c-3) Beginning in State fiscal year 2025, if the Comptroller requests that the Board submit, during a State fiscal year, vouchers for multiple monthly payments for advance payment of State contributions due to the System for that State fiscal year, then the Board shall submit those additional vouchers as directed by the Comptroller, notwithstanding subsection (c-2). Unless an act of appropriations provides otherwise, nothing in this Section authorizes the Board to submit, in a State fiscal year, vouchers for the payment of State contributions to the System in an amount that exceeds the rate of payroll that is certified by the System under Section 14-135.08 for that State fiscal year. (d) If an employee is paid from trust funds or federal funds, the department or other employer shall pay employer contributions from those funds to the System at the certified rate, unless the terms of the trust or the federal-State agreement preclude the use of the funds for that purpose, in which case the required employer contributions shall be paid by the State. (e) For State fiscal years 2012 through 2045, the minimum contribution to the System to be made by the State for each fiscal year shall be an amount determined by the System to be sufficient to bring the total assets of the System up to 90% of the total actuarial liabilities of the System by the end of State fiscal year 2045. In making these determinations, the required State contribution shall be calculated each year as a level percentage of payroll over the years remaining to and including fiscal year 2045 and shall be determined under the projected unit credit actuarial cost method. A change in an actuarial or investment assumption that increases or decreases the required State contribution and first applies in State fiscal year 2018 or thereafter shall be implemented in equal annual amounts over a 5-year period beginning in the State fiscal year in which the actuarial change first applies to the required State contribution. A change in an actuarial or investment assumption that increases or decreases the required State contribution and first applied to the State contribution in fiscal year 2014, 2015, 2016, or 2017 shall be implemented: (i) as already applied in State fiscal years before | | (ii) in the portion of the 5-year period beginning in
| | the State fiscal year in which the actuarial change first applied that occurs in State fiscal year 2018 or thereafter, by calculating the change in equal annual amounts over that 5-year period and then implementing it at the resulting annual rate in each of the remaining fiscal years in that 5-year period.
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| For State fiscal years 1996 through 2005, the State contribution to the System, as a percentage of the applicable employee payroll, shall be increased in equal annual increments so that by State fiscal year 2011, the State is contributing at the rate required under this Section; except that (i) for State fiscal year 1998, for all purposes of this Code and any other law of this State, the certified percentage of the applicable employee payroll shall be 5.052% for employees earning eligible creditable service under Section 14-110 and 6.500% for all other employees, notwithstanding any contrary certification made under Section 14-135.08 before July 7, 1997 (the effective date of Public Act 90-65), and (ii) in the following specified State fiscal years, the State contribution to the System shall not be less than the following indicated percentages of the applicable employee payroll, even if the indicated percentage will produce a State contribution in excess of the amount otherwise required under this subsection and subsection (a): 9.8% in FY 1999; 10.0% in FY 2000; 10.2% in FY 2001; 10.4% in FY 2002; 10.6% in FY 2003; and 10.8% in FY 2004.
Beginning in State fiscal year 2046, the minimum State contribution for each fiscal year shall be the amount needed to maintain the total assets of the System at 90% of the total actuarial liabilities of the System.
Amounts received by the System pursuant to Section 25 of the Budget Stabilization Act or Section 8.12 of the State Finance Act in any fiscal year do not reduce and do not constitute payment of any portion of the minimum State contribution required under this Article in that fiscal year. Such amounts shall not reduce, and shall not be included in the calculation of, the required State contributions under this Article in any future year until the System has reached a funding ratio of at least 90%. A reference in this Article to the "required State contribution" or any substantially similar term does not include or apply to any amounts payable to the System under Section 25 of the Budget Stabilization Act.
Notwithstanding any other provision of this Section, the required State contribution for State fiscal year 2005 and for fiscal year 2008 and each fiscal year thereafter, as calculated under this Section and certified under Section 14-135.08, shall not exceed an amount equal to (i) the amount of the required State contribution that would have been calculated under this Section for that fiscal year if the System had not received any payments under subsection (d) of Section 7.2 of the General Obligation Bond Act, minus (ii) the portion of the State's total debt service payments for that fiscal year on the bonds issued in fiscal year 2003 for the purposes of that Section 7.2, as determined and certified by the Comptroller, that is the same as the System's portion of the total moneys distributed under subsection (d) of Section 7.2 of the General Obligation Bond Act.
(f) (Blank).
(g) For purposes of determining the required State contribution to the System, the value of the System's assets shall be equal to the actuarial value of the System's assets, which shall be calculated as follows:
As of June 30, 2008, the actuarial value of the System's assets shall be equal to the market value of the assets as of that date. In determining the actuarial value of the System's assets for fiscal years after June 30, 2008, any actuarial gains or losses from investment return incurred in a fiscal year shall be recognized in equal annual amounts over the 5-year period following that fiscal year.
(h) For purposes of determining the required State contribution to the System for a particular year, the actuarial value of assets shall be assumed to earn a rate of return equal to the System's actuarially assumed rate of return.
(i) (Blank).
(j) (Blank).
(k) For fiscal year 2012 and each fiscal year thereafter, after the submission of all payments for eligible employees from personal services line items paid from the General Revenue Fund in the fiscal year have been made, the Comptroller shall provide to the System a certification of the sum of all expenditures in the fiscal year for personal services. Upon receipt of the certification, the System shall determine the amount due to the System based on the full rate certified by the Board under Section 14-135.08 for the fiscal year in order to meet the State's obligation under this Section. The System shall compare this amount due to the amount received by the System for the fiscal year. If the amount due is more than the amount received, the difference shall be termed the "Prior Fiscal Year Shortfall" for purposes of this Section, and the Prior Fiscal Year Shortfall shall be satisfied under Section 1.2 of the State Pension Funds Continuing Appropriation Act. If the amount due is less than the amount received, the difference shall be termed the "Prior Fiscal Year Overpayment" for purposes of this Section, and the Prior Fiscal Year Overpayment shall be repaid by the System to the General Revenue Fund as soon as practicable after the certification.
(Source: P.A. 103-588, eff. 6-5-24.)
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40 ILCS 5/14-132
(40 ILCS 5/14-132) (from Ch. 108 1/2, par. 14-132)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 14-132. Obligations of State; funding guarantee. (a) The payment of the required department
contributions, all allowances,
annuities, benefits granted under this Article, and all expenses of
administration of the system are obligations of the State of Illinois to
the extent specified in this Article.
(b) All income of the system
shall be credited to a separate account for this system in the State
treasury and shall be used to pay allowances, annuities, benefits and
administration expense.
(c) Beginning July 1, 2014, the State shall be obligated to contribute to the System in each State fiscal year an amount not less than the sum of (i) the State's normal cost for the year and (ii) the portion of the unfunded accrued liability assigned to that year by law. Notwithstanding any other provision of law, if the State fails to pay an amount required under this subsection, it shall be the obligation of the Board to seek payment of the required amount in compliance with the provisions of this Section and, if the amount remains unpaid, to bring a mandamus action in the Supreme Court of Illinois to compel the State to make the required payment. If the System submits a voucher for contributions required under Section 14-131 and the State fails to pay that voucher within 90 days of its receipt, the Board shall submit a written request to the Comptroller seeking payment. A copy of the request shall be filed with the Secretary of State, and the Secretary of State shall provide a copy to the Governor and General Assembly. No earlier than the 16th day after the System files the request with the Comptroller and Secretary of State, if the amount remains unpaid the Board shall commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to satisfy the voucher. This subsection (c) constitutes an express waiver of the State's sovereign immunity solely to the extent that it permits the Board to commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to pay a voucher for the contributions required under Section 14-131. (d) Beginning in State fiscal year 2016, the State shall be obligated to make the transfers set forth in subsections (c-5) and (c-10) of Section 20 of the Budget Stabilization Act and to pay to the System its proportionate share of the transferred amounts in accordance with Section 25 of the Budget Stabilization Act. Notwithstanding any other provision of law, if the State fails to transfer an amount required under this subsection or to pay to the System its proportionate share of the transferred amount in accordance with Section 25 of the Budget Stabilization Act, it shall be the obligation of the Board to seek transfer or payment of the required amount in compliance with the provisions of this Section and, if the required amount remains untransferred or the required payment remains unpaid, to bring a mandamus action in the Supreme Court of Illinois to compel the State to make the required transfer or payment or both, as the case may be. If the State fails to make a transfer required under subsection (c-5) or (c-10) of Section 20 of the Budget Stabilization Act or a payment to the System required under Section 25 of that Act, the Board shall submit a written request to the Comptroller seeking payment. A copy of the request shall be filed with the Secretary of State, and the Secretary of State shall provide a copy to the Governor and General Assembly. No earlier than the 16th day after the System files the request with the Comptroller and Secretary of State, if the required amount remains untransferred or the required payment remains unpaid, the Board shall commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to make the required transfer or payment or both, as the case may be. This subsection (d) constitutes an express waiver of the State's sovereign immunity solely to the extent that it permits the Board to commence a mandamus action in the Supreme Court of Illinois to compel the Comptroller to make a transfer required under subsection (c-5) or (c-10) of Section 20 of the Budget Stabilization Act and to pay to the System its proportionate share of the transferred amount in accordance with Section 25 of the Budget Stabilization Act. The obligations created by this subsection (d) expire when all of the requirements of subsections (c-5) and (c-10) of Section 20 of the Budget Stabilization Act and Section 25 of the Budget Stabilization Act have been met. (e) Any payments and transfers required to be made by the State pursuant to subsection (c) or (d) are expressly subordinate to the payment of the principal, interest, and premium, if any, on any bonded debt obligation of the State or any other State-created entity, either currently outstanding or to be issued, for which the source of repayment or security thereon is derived directly or indirectly from tax revenues collected by the State or any other State-created entity. Payments on such bonded obligations include any statutory fund transfers or other prefunding mechanisms or formulas set forth, now or hereafter, in State law or bond indentures, into debt service funds or accounts of the State related to such bond obligations, consistent with the payment schedules associated with such obligations. (Source: P.A. 98-599, eff. 6-1-14 .) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 14-132.
Obligations of State.
The payment of the required department
contributions, all allowances,
annuities, benefits granted under this Article, and all expenses of
administration of the system are obligations of the State of Illinois to
the extent specified in this Article.
All income of the system
shall be credited to a separate account for this system in the State
treasury and shall be used to pay allowances, annuities, benefits and
administration expense.
(Source: P.A. 80-841.)
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40 ILCS 5/14-132.2 (40 ILCS 5/14-132.2)
Sec. 14-132.2. Payment into the General Obligation Retirement and Interest Fund. Notwithstanding any other law, on the first day of each month, or as soon thereafter as practical, the System shall pay over to the State for deposit into the General Obligation Retirement and Interest Fund all amounts previously received by the System pursuant to Section 14-135.08(b) representing additional amounts to pay principal of and interest on general obligation bonds authorized by Section 7.2(a) of the General Obligation Bond Act and issued to provide those proceeds deposited by the State with the System in July 2003, representing deposits other than amounts reserved under Section 7.2 of the General Obligation Bond Act.
(Source: P.A. 93-839, eff. 7-30-04.) |
40 ILCS 5/14-133
(40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 14-133. Contributions on behalf of members.
(a) Except as provided in subsection (a-5), each participating employee shall make contributions to the System,
based on the employee's compensation, as follows:
(1) Covered employees, except as indicated below, | | 3.5% for retirement annuity, and 0.5% for a widow or survivors annuity;
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(2) Noncovered employees, except as indicated below,
| | 7% for retirement annuity and 1% for a widow or survivors annuity;
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(3) Noncovered employees serving in a position in
| | which "eligible creditable service" as defined in Section 14-110 may be earned, 1% for a widow or survivors annuity plus the following amount for retirement annuity: 8.5% through December 31, 2001; 9.5% in 2002; 10.5% in 2003; and 11.5% in 2004 and thereafter;
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(4) Covered employees serving in a position in which
| | "eligible creditable service" as defined in Section 14-110 may be earned, 0.5% for a widow or survivors annuity plus the following amount for retirement annuity: 5% through December 31, 2001; 6% in 2002; 7% in 2003; and 8% in 2004 and thereafter;
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(5) Each security employee of the Department of
| | Corrections or of the Department of Human Services who is a covered employee, 0.5% for a widow or survivors annuity plus the following amount for retirement annuity: 5% through December 31, 2001; 6% in 2002; 7% in 2003; and 8% in 2004 and thereafter;
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(6) Each security employee of the Department of
| | Corrections or of the Department of Human Services who is not a covered employee, 1% for a widow or survivors annuity plus the following amount for retirement annuity: 8.5% through December 31, 2001; 9.5% in 2002; 10.5% in 2003; and 11.5% in 2004 and thereafter.
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(a-5) Beginning July 1, 2014, in lieu of the contributions otherwise required under subsection (a), each Tier 1 member who is a participating employee shall make contributions to the System,
based on his or her compensation, as follows:
(1) Covered employees, except as indicated below,
| | 2.5% for retirement annuity, and 0.5% for a widow or survivors annuity;
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| (2) Noncovered employees, except as indicated below,
| | 6% for retirement annuity and 1% for a widow or survivors annuity;
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| (3) Noncovered employees serving in a position in
| | which "eligible creditable service" as defined in Section 14-110 may be earned, 10.5% for retirement annuity and 1% for a widow or survivors annuity;
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| (4) Covered employees serving in a position in which
| | "eligible creditable service" as defined in Section 14-110 may be earned, 7% for retirement annuity and 0.5% for a widow or survivors annuity;
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| (5) Each security employee of the Department of
| | Corrections or of the Department of Human Services who is a covered employee, 7% for retirement annuity and 0.5% for a widow or survivors annuity;
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| (6) Each security employee of the Department of
| | Corrections or of the Department of Human Services who is not a covered employee, 10.5% for retirement annuity and 1% for a widow or survivors annuity.
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| (b) Contributions shall be in the form of a deduction from
compensation and shall be made notwithstanding that the compensation
paid in cash to the employee shall be reduced thereby below the minimum
prescribed by law or regulation. Each member is deemed to consent and
agree to the deductions from compensation provided for in this Article,
and shall receipt in full for salary or compensation.
(Source: P.A. 98-599, eff. 6-1-14 .)
(Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 14-133.
Contributions on behalf of members.
(a) Each participating employee shall make contributions to the System,
based on the employee's compensation, as follows:
(1) Covered employees, except as indicated below,
| | 3.5% for retirement annuity, and 0.5% for a widow or survivors annuity;
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(2) Noncovered employees, except as indicated below,
| | 7% for retirement annuity and 1% for a widow or survivors annuity;
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(3) Noncovered employees serving in a position in
| | which "eligible creditable service" as defined in Section 14-110 may be earned, 1% for a widow or survivors annuity plus the following amount for retirement annuity: 8.5% through December 31, 2001; 9.5% in 2002; 10.5% in 2003; and 11.5% in 2004 and thereafter;
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(4) Covered employees serving in a position in which
| | "eligible creditable service" as defined in Section 14-110 may be earned, 0.5% for a widow or survivors annuity plus the following amount for retirement annuity: 5% through December 31, 2001; 6% in 2002; 7% in 2003; and 8% in 2004 and thereafter;
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(5) Each security employee of the Department of
| | Corrections or of the Department of Human Services who is a covered employee, 0.5% for a widow or survivors annuity plus the following amount for retirement annuity: 5% through December 31, 2001; 6% in 2002; 7% in 2003; and 8% in 2004 and thereafter;
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(6) Each security employee of the Department of
| | Corrections or of the Department of Human Services who is not a covered employee, 1% for a widow or survivors annuity plus the following amount for retirement annuity: 8.5% through December 31, 2001; 9.5% in 2002; 10.5% in 2003; and 11.5% in 2004 and thereafter.
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(b) Contributions shall be in the form of a deduction from
compensation and shall be made notwithstanding that the compensation
paid in cash to the employee shall be reduced thereby below the minimum
prescribed by law or regulation. Each member is deemed to consent and
agree to the deductions from compensation provided for in this Article,
and shall receipt in full for salary or compensation.
(Source: P.A. 92-14, eff. 6-28-01.)
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40 ILCS 5/14-133.1
(40 ILCS 5/14-133.1) (from Ch. 108 1/2, par. 14-133.1)
Sec. 14-133.1.
Pickup of contributions.
(a) Each department shall pick up the employee contributions
required by Section 14-133 for all compensation earned after December 31,
1981, and the contributions so picked up shall be treated as employer
contributions in determining tax treatment under the United States Internal
Revenue Code; however, each department shall continue to withhold federal
and State income taxes based upon these contributions until the Internal
Revenue Service or the federal courts rule that pursuant to Section 414(h)
of the United States Internal Revenue Code, these contributions shall not
be included as gross income of the employee until such time as they are
distributed or made available.
The department shall pay these employee contributions from the same
fund which is used in paying earnings to the
employee. The department may pick up these contributions by a reduction in
the cash salary of the employee or by an offset against a future salary
increase or by a combination of a reduction in salary and offset against a
future salary increase. If employee contributions are picked up they shall
be treated for all purposes of this Article 14 in the same manner and to
the same extent as employee contributions made prior to the date picked up.
(b) Subject to the requirements of federal law, an employee of a
department may elect to have the department pick up optional contributions that
the employee has elected to pay to the System, and the contributions so picked
up shall be treated as employer contributions for the purposes of determining
federal tax treatment. The department shall pick up the contributions by a
reduction in the cash salary of the employee and shall pay the contributions
from the same fund that is used to pay earnings to the employee.
The election to have optional contributions picked up is irrevocable and the
optional contributions may not thereafter be prepaid, by direct payment or
otherwise.
If the provision authorizing the optional contribution requires
payment by a stated date (rather than the date of withdrawal or retirement),
that requirement shall be deemed to have been satisfied if (i) on or before the
stated date the employee executes a valid irrevocable election to have the
contributions picked up under this subsection, and (ii) the picked-up
contributions are in fact paid to the System as provided in the election.
(Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
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40 ILCS 5/14-133.5 (40 ILCS 5/14-133.5) (This Section was added by P.A. 98-599, which has been held unconstitutional) Sec. 14-133.5. Use of contributions for health care subsidies. The System shall not use any contribution received by the System under this Article to provide a subsidy for the cost of participation in a retiree health care program.
(Source: P.A. 98-599, eff. 6-1-14 .) |
40 ILCS 5/14-134
(40 ILCS 5/14-134) (from Ch. 108 1/2, par. 14-134)
Sec. 14-134. Board created.
The retirement system created by this
Article shall be a trust, separate and distinct from all other entities.
The responsibility for the operation of the system and for making effective
this Article is vested in a board of trustees.
The board shall consist of 7 trustees, as follows:
(a) the Director of the
Governor's Office of Management and Budget; (b) the Comptroller; (c)
one trustee, not a State employee, who shall be Chairman, to be appointed
by the Governor for a 5 year term; (d) two members of the system, one of
whom shall be an annuitant age 60 or over, having at least 8 years of
creditable service, to be appointed by the Governor for terms of 5 years;
(e) one member of the system having at least 8 years of creditable service,
to be elected from the contributing membership of the system by the
contributing members as provided in Section 14-134.1; (f) one annuitant of
the system who has been an annuitant for at least one full year, to be
elected from and by the annuitants of the system, as provided in Section
14-134.1. The Director of the
Governor's Office of Management and Budget
and the Comptroller shall
be ex-officio members and shall serve as trustees during their respective terms
of office, except that each of them may designate another officer or employee
from the same agency to serve in his or her place. However, no ex-officio
member may designate a different proxy within one year after designating a
proxy unless the person last so designated has become ineligible to serve in
that capacity. Except for the elected trustees, any vacancy in the office of
trustee shall be filled in the same manner as the office was filled previously.
A trustee shall serve until a successor qualifies, except
that a trustee who is a member of the system shall be disqualified as a
trustee immediately upon terminating service with the State.
Notwithstanding any provision of this Section to the contrary, the term of office of each trustee of the board appointed by the Governor who is sitting on the board on the effective date of this amendatory Act of the 96th General Assembly is terminated on that effective date. Beginning on the 90th day after the effective date of this amendatory Act of the 96th General Assembly, the board shall consist of 13 trustees as follows: (1) the Comptroller, who shall be the Chairperson; (2) six persons appointed by the Governor with the | | advice and consent of the Senate who may not be members of the system or hold an elective State office and who shall serve for a term of 5 years, except that the terms of the initial appointees under this amendatory Act of the 96th General Assembly shall be as follows: 3 for a term of 3 years and 3 for a term of 5 years;
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| (3) four active participants of the system having at
| | least 8 years of creditable service, to be elected from the contributing members of the system by the contribution members as provided in Section 14-134.1; and
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| (4) two annuitants of the system who have been
| | annuitants for at least one full year, to be elected from and by the annuitants of the system, as provided in Section 14-134.1.
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| For the purposes of this Section, the Governor may make a nomination and the Senate may confirm the nominee in advance of the commencement of the nominee's term of office.
The Governor shall make nominations for appointment to the board under this Section within 60 days after the effective date of this amendatory Act of the 96th General Assembly. A trustee sitting on the board on the effective date of this amendatory Act of the 96th General Assembly may not hold over in office for more than 90 days after the effective date of this amendatory Act of the 96th General Assembly. Nothing in this Section shall prevent the Governor from making a temporary appointment or nominating a trustee holding office on the day before the effective date of this amendatory Act of the 96th General Assembly.
Each trustee is entitled to one vote on the board, and 4 trustees shall
constitute a quorum for the transaction of business. The affirmative
votes of a majority of the trustees present, but at least 3 trustees, shall be
necessary for action by the board at any meeting. On the 90th day after the effective date of this amendatory Act of the 96th General Assembly, 7 trustees shall constitute a quorum for the transaction of business and the affirmative vote of a majority of the trustees present, but at least 7 trustees, shall be necessary for action by the board at any meeting. The board's action of July
22, 1986, by which it amended the bylaws of the system to increase the number
of affirmative votes required for board action from 3 to 4 (in response to
Public Act 84-1028, which increased the number of trustees from 5 to 7), and
the board's rejection, between that date and the effective date of this
amendatory Act of 1993, of proposed actions not receiving at least 4
affirmative votes, are hereby validated.
The trustees shall serve without compensation, but shall be reimbursed
from the funds of the system for all necessary expenses incurred through
service on the board.
Each trustee shall take an oath of office that he or she will
diligently and honestly administer the affairs of the system, and will not
knowingly violate or willfully permit the violation of any of
the provisions of law applicable to the system. The oath shall be
subscribed to by the trustee making it, certified by the officer before
whom it is taken, and filed with the Secretary of State. A trustee shall
qualify for membership on the board when the oath has been approved by the
board.
(Source: P.A. 96-6, eff. 4-3-09.)
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40 ILCS 5/14-134.1
(40 ILCS 5/14-134.1) (from Ch. 108 1/2, par. 14-134.1)
Sec. 14-134.1. Board-elected members-vacancies. The 2 elected trustees
shall be elected, beginning in 1986 and every 5 years thereafter, for a
term of 5 years beginning July 15 next following their election. The trustees to be elected under Section 14-134 of this Code in accordance with this amendatory Act of the 96th General Assembly shall be elected within 90 days after the effective date of this amendatory Act of the 96th General Assembly for a term of 5 years after the effective date of this amendatory Act. Trustees shall be elected every 5 years thereafter for a term of 5 years beginning July 15 next following their election. Elections
shall be held on May 1, or on May 2 when May 1 falls on Sunday. Candidates
for the contributing trustee shall be nominated by petitions in writing,
signed by not less than 400 contributors with their addresses shown opposite
their names. Candidates for the annuitant trustee shall be nominated by
petitions in writing, signed by not less than 100 annuitants with their
addresses shown opposite their names.
If there is more than one qualified nominee for either elected trustee,
the board shall conduct a secret ballot election by mail for that trustee,
in accordance with rules as established by the board.
If there is only one qualified person nominated by petition for either
trustee, the election as required by this Section shall not be conducted
for that trustee and the board shall declare such nominee duly elected.
A vacancy occurring in the elective membership of the board shall be filled
for the unexpired term by the board.
(Source: P.A. 96-6, eff. 4-3-09.)
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40 ILCS 5/14-135
(40 ILCS 5/14-135) (from Ch. 108 1/2, par. 14-135)
Sec. 14-135.
Board's powers and duties.
The board shall have the powers
and duties stated in the Sections which succeed this Section and precede
Section 14-136, in addition to the other powers and duties provided in this
Article.
(Source: P.A. 80-841.)
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40 ILCS 5/14-135.01
(40 ILCS 5/14-135.01) (from Ch. 108 1/2, par. 14-135.01)
Sec. 14-135.01.
To establish an office and system of records.
To establish
an office or offices for the meetings of the board and
for the administrative personnel; to provide for the installation of a
complete and adequate system of accounts and records which will give
effect to the requirements of this Article; and to credit all assets of
the system according to the purposes for which they are held. All books
and records shall be kept in such offices.
(Source: P.A. 80-841.)
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40 ILCS 5/14-135.02
(40 ILCS 5/14-135.02) (from Ch. 108 1/2, par. 14-135.02)
Sec. 14-135.02.
To hold meetings.
To hold regular meetings at least quarterly
in each year and such special meetings as may be deemed necessary. All
meetings shall be open to the public. The board shall keep a record of
all its proceedings.
(Source: P.A. 80-841.)
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40 ILCS 5/14-135.03
(40 ILCS 5/14-135.03) (from Ch. 108 1/2, par. 14-135.03)
Sec. 14-135.03.
To prescribe rules and administer system.
To
establish rules and regulations and formulate policy for proper
operation of the system and the transaction of its business; to
prescribe rules for the determination of the value of maintenance,
board, lodging, laundry, and other allowances to employees in lieu of
money; to maintain a separate account on each member's contribution, and
submit a statement of account to each member annually. The Board may
include in such rules and regulations provisions requiring the
disclosure of social security numbers and may provide for the use of
such numbers in the records of the System as it may deem appropriate.
(Source: P.A. 80-841.)
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40 ILCS 5/14-135.04
(40 ILCS 5/14-135.04) (from Ch. 108 1/2, par. 14-135.04)
Sec. 14-135.04.
To pass on annuities.
To consider and pass on all applications
for annuities, allowances
and benefits, and have examinations made of persons receiving disability
benefits, at least once each year.
(Source: P.A. 80-841.)
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40 ILCS 5/14-135.05
(40 ILCS 5/14-135.05) (from Ch. 108 1/2, par. 14-135.05)
Sec. 14-135.05.
To adopt actuarial tables.
To adopt all necessary actuarial
tables to be used in the operation
of the system as prepared by the actuary, and compile such additional
data as may be necessary for required actuarial valuation and
calculation.
(Source: P.A. 80-841.)
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40 ILCS 5/14-135.06
(40 ILCS 5/14-135.06) (from Ch. 108 1/2, par. 14-135.06)
Sec. 14-135.06.
To have an audit and submit statements.
To have the accounts
of the system audited annually by a certified
public accountant designated by the Auditor General; to submit an annual
statement to the Governor as soon as possible after the end of each
fiscal year; and to cause to be published for distribution among the
members a financial statement showing the assets and liabilities of the
system, an income statement, an analysis of operating results, and an
actuarial valuation of the assets and liabilities of the system.
(Source: P.A. 80-841.)
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40 ILCS 5/14-135.07
(40 ILCS 5/14-135.07) (from Ch. 108 1/2, par. 14-135.07)
Sec. 14-135.07.
To accept gifts.
To accept any gift, grant or bequest
of any money or securities for
the purposes designated by the grantor, made with the specific purpose
of providing cash benefits for some or all of the members or any
beneficiary of the system, or if no such purpose is designated to apply
the same against the amount to be contributed by the State.
(Source: P.A. 80-841.)
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40 ILCS 5/14-135.08
(40 ILCS 5/14-135.08) (from Ch. 108 1/2, par. 14-135.08)
Sec. 14-135.08. To certify required State contributions. (a)
To certify to the Governor and to each department, on or before
November 15 of each year until November 15, 2011, the required rate for State contributions to the
System for the next State fiscal year, as determined under subsection (b) of
Section 14-131. The certification to the Governor under this subsection (a) shall include a copy of the
actuarial recommendations upon which the rate is based and shall specifically identify the System's projected State normal cost for that fiscal year.
(a-5) On or before November 1 of each year, beginning November 1, 2012, 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 System 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, 2013, 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. On or before January 15, 2013 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 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. (b) The certifications under subsections (a) and (a-5) shall include an additional amount necessary to pay all principal of and interest on those general obligation bonds due the next fiscal year authorized by Section 7.2(a) of the General Obligation Bond Act and issued to provide the proceeds deposited by the State with the System in July 2003, representing deposits other than amounts reserved under Section 7.2(c) of the General Obligation Bond Act. For State fiscal year 2005, the Board shall make a supplemental certification of the additional amount necessary to pay all principal of and interest on those general obligation bonds due in State fiscal years 2004 and 2005 authorized by Section 7.2(a) of the General Obligation Bond Act and issued to provide the proceeds deposited by the State with the System in July 2003, representing deposits other than amounts reserved under Section 7.2(c) of the General Obligation Bond Act, as soon as practical after the effective date of this amendatory Act of the 93rd General Assembly.
On or before May 1, 2004, the Board shall recalculate and recertify
to the Governor and to each department the amount of the required State
contribution to the System and the required rates for State contributions
to the System for State fiscal year 2005, taking into account the amounts
appropriated to and received by the System under subsection (d) of Section
7.2 of the General Obligation Bond Act.
On or before July 1, 2005, the Board shall recalculate and recertify
to the Governor and to each department the amount of the required State
contribution to the System and the required rates for State contributions
to the System for State fiscal year 2006, taking into account the changes in required State contributions made by this amendatory Act of the 94th General Assembly.
On or before April 1, 2011, the Board shall recalculate and recertify to the Governor and to each department the amount of the required State contribution to the System for State fiscal year 2011, applying the changes made by Public Act 96-889 to the System's assets and liabilities as of June 30, 2009 as though Public Act 96-889 was approved on that date. By November 1, 2017, the Board shall recalculate and recertify to the State Actuary, the Governor, and the General Assembly the amount of the State contribution to the System for State fiscal year 2018, taking into account the changes in required State contributions made by this amendatory Act of the 100th General Assembly. The State Actuary shall review the assumptions and valuations underlying the Board's revised certification and issue a preliminary report concerning the proposed recertification and identifying, if necessary, recommended changes in actuarial assumptions that the Board must consider before finalizing its certification of the required State contributions. The Board's final 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. On or after June 15, 2019, but no later than June 30, 2019, the Board shall recalculate and recertify to the Governor and the General Assembly the amount of the State contribution to the System for State fiscal year 2019, taking into account the changes in required State contributions made by this amendatory Act of the 100th General Assembly. The recalculation shall be made using assumptions adopted by the Board for the original fiscal year 2019 certification. The monthly voucher for the 12th month of fiscal year 2019 shall be paid by the Comptroller after the recertification required pursuant to this paragraph is submitted to the Governor, Comptroller, and General Assembly. The recertification submitted to the General Assembly shall be filed with the Clerk of the House of Representatives and the Secretary of the Senate in electronic form only, in the manner that the Clerk and the Secretary shall direct. (Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18.)
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40 ILCS 5/14-135.09
(40 ILCS 5/14-135.09) (from Ch. 108 1/2, par. 14-135.09)
Sec. 14-135.09.
To obtain services.
To obtain, pursuant to the "Personnel
Code", approved July 18, 1955, as now or hereafter amended, an executive
secretary, an actuary and such medical
and other services as shall be required to transact the business of the
system; and to pay the expenses of the board necessary for the operation
of the system at such rates and in such amounts as the board determines
and approves.
(Source: P.A. 80-841.)
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40 ILCS 5/14-135.10
(40 ILCS 5/14-135.10) (from Ch. 108 1/2, par. 14-135.10)
Sec. 14-135.10.
To subpoena witnesses.
To compel witnesses to attend
and testify before it upon any necessary matter concerning the System, and
to allow reasonable fees to such witnesses for attendance at such meetings
in amounts to be determined by the board. The presiding member of the board
may administer oaths to witnesses.
(Source: P.A. 84-1028.)
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40 ILCS 5/14-135.11 (40 ILCS 5/14-135.11) Sec. 14-135.11. To request information. To request from any member, annuitant, beneficiary, or employer such information as is necessary for the proper administration of the System.
(Source: P.A. 99-450, eff. 8-24-15.) |
40 ILCS 5/14-136
(40 ILCS 5/14-136) (from Ch. 108 1/2, par. 14-136)
Sec. 14-136.
Executive Secretary.
The Executive Secretary shall be the
executive officer in charge of the
administration of the detailed affairs of the system. He shall:
(a) collect and receipt for all payments made to the system,
including member contributions, State contributions, and other income accruing
to the system, and deposit same with the State
Treasurer for its account; (b) sign vouchers for the payment of moneys
by the system in accordance with authorization of the board; and (c)
perform such other duties as the board assigns to him.
(Source: P.A. 80-841.)
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40 ILCS 5/14-137
(40 ILCS 5/14-137) (from Ch. 108 1/2, par. 14-137)
Sec. 14-137.
Treasurer.
The Treasurer of the State of Illinois shall
be, ex-officio, the
treasurer of the system. He shall:
(a) act as official custodian of the cash and securities belonging
to the system and provide adequate safe deposit facilities for their
preservation and hold such cash and securities subject to the order of
the board; (b) receive all items of cash belonging to the system, as the
same are transmitted by the Executive Secretary of the system, including member
contributions, State contributions, interest and principal payments on
investments and other income accruing to the system, and deposit all
such amounts in a special trust fund for the account of this system, and
submit a monthly report to the board of all such transactions; (c) make
payments for purposes specified in this Article upon warrants or direct
deposit transmittals of the
State Comptroller issued in accordance with vouchers signed by the
Executive Secretary pursuant to authorization of the board.
The treasurer shall furnish a corporate surety bond, acceptable to
the board in the penal sum of $50,000, conditioned for the faithful
discharge of his duties, and to deliver up all moneys, securities,
papers, books, records and other property appertaining to his office as
treasurer of the system, whole, safe and undefaced, to his successor in
office. Whenever the board deems the amount of the bond insufficient, it
may require an increase to a penal sum not to exceed $100,000. All
reasonable charges incidental to the procuring and giving of such bond
shall be paid by the board.
Any cash accruing to the special trust fund of the system not required for
current operating expenditures shall upon direction by the Executive Secretary
be transferred immediately to the said Illinois
State Board of Investment for purposes of permanent investment for the system.
Until such transfer is made, those funds shall be invested temporarily
by the Treasurer on behalf of the system and interest earned thereon shall
be credited to the trust fund of the system.
(Source: P.A. 82-391.)
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40 ILCS 5/14-138
(40 ILCS 5/14-138) (from Ch. 108 1/2, par. 14-138)
Sec. 14-138. Actuary. The Actuary shall be the technical advisor of the
board on matters regarding the operation of the system. The actuary
shall:
(a) at least once every 3 years, make a general | | investigation of the mortality, retirement, disability, employment, turnover, interest and earnable compensation;
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(b) recommend tables to be used for all required
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(c) make an annual valuation of the liabilities and
| | reserves of the system, make an annual determination of the amount of contributions required from the State under this Article, and certify the results thereof to the board; and
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(d) perform such other duties as the board may assign.
(Source: P.A. 99-232, eff. 8-3-15.)
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40 ILCS 5/14-139
(40 ILCS 5/14-139) (from Ch. 108 1/2, par. 14-139)
Sec. 14-139.
Legal counsel.
The Attorney General of the State shall be
the legal advisor to the board.
(Source: P.A. 80-841.)
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40 ILCS 5/14-140
(40 ILCS 5/14-140) (from Ch. 108 1/2, par. 14-140)
Sec. 14-140.
Duties of a department.
Each department in the
preparation of payroll vouchers covering payments of salary and wages to
members for employment, shall indicate, for each employee who is a
member of the system, in addition to other things:
(a) the rate of compensation;
(b) the total compensation earned; and
(c) the amount of contributions deducted
for the purposes of the
System.
An additional certified copy of each payroll voucher certified by
each such department shall be prepared and forwarded together with the
original payroll voucher to the Director of Central Management
Services,
State Comptroller or other officer receiving the original certified
payroll voucher for transmittal to the board as herein provided.
Each department, in drawing warrants against trust or federal funds
for items of salary on payroll vouchers certified by the department,
shall draw such warrants to the employees who are members of the system
for the amount of salary or wages specified for the period, less the contributions
to be made to the system as certified in such payroll vouchers, and shall
draw a warrant made payable to the system for the
total of the contributions so withheld from such employees on each such
payroll voucher. The warrant drawn to this system, together with the
additional copy of the payroll shall be transmitted immediately to the
Executive Secretary of the board.
Each Department shall submit to the board a current membership record
for each new employee entitled to membership in the system, and such
other information regarding each employee as the board may require.
(Source: P.A. 82-789.)
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40 ILCS 5/14-141
(40 ILCS 5/14-141) (from Ch. 108 1/2, par. 14-141)
Sec. 14-141.
Duties of Director of Central Management
Services. The Director of Central Management Services
in considering all payroll vouchers which are
required under "An Act in relation to State finance", approved June 10,
1919, as amended, to be approved by the Department of Central Management Services
before
warrants are drawn by the State Comptroller, shall approve such payrolls
if they are prepared in accordance with Section 14-140 of this Article.
(Source: P.A. 82-789.)
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40 ILCS 5/14-142
(40 ILCS 5/14-142) (from Ch. 108 1/2, par. 14-142)
Sec. 14-142.
Duties of Director of Central Management Services.
The Director of Central Management Services in passing
on payroll vouchers as required
under the provisions of the "Personnel Code", approved July 18, 1955, as
amended, shall approve the payroll vouchers if they are prepared in
accordance with Section 14-140 of this Article.
(Source: P.A. 82-789.)
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40 ILCS 5/14-143
(40 ILCS 5/14-143) (from Ch. 108 1/2, par. 14-143)
Sec. 14-143.
Duties of State Comptroller.
The State Comptroller shall
draw warrants or prepare direct deposit transmittals upon the State
Treasurer payable from the funds of this
system for purposes provided for in this Article upon the presentation
of vouchers approved by the Executive Secretary of the board in
accordance with authorization of the board.
The Comptroller, in drawing warrants for items of salary and wages on
payroll vouchers certified by a department, shall deduct the employee contribution
to be withheld therefrom in accordance with this Article, as certified in
such payroll vouchers and shall draw a warrant made
payable to the system for the total of the contributions so withheld on
each such payroll voucher.
(Source: P.A. 82-391.)
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40 ILCS 5/14-144
(40 ILCS 5/14-144) (from Ch. 108 1/2, par. 14-144)
Sec. 14-144.
Authorizations.
Members shall, by virtue of the payment
of the contributions required to be paid to this system, receive a vested
interest in their accumulated contributions in the system, and, in consideration
of such vested interest, each member is deemed to have agreed to and authorized the
deductions from salary of all contributions payable to this system.
Payment of salary as prescribed by law or as contracted by a
department, less the amounts of contributions provided in this Article,
shall, together with such special vested rights, be a full and complete
discharge of all claims of payments for service rendered by a member to
the State during the period covered by any such payment.
(Source: P.A. 80-841.)
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40 ILCS 5/14-145
(40 ILCS 5/14-145) (from Ch. 108 1/2, par. 14-145)
Sec. 14-145.
Retirement systems reciprocal act.
The Retirement Systems
Reciprocal Act, Article 20 of this Code, as now or hereafter amended, is
adopted and made a part of this Article.
(Source: P.A. 80-841.)
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40 ILCS 5/14-146
(40 ILCS 5/14-146) (from Ch. 108 1/2, par. 14-146)
Sec. 14-146.
Undivided interests.
The assets of the system shall be invested
as one fund, and no
particular person, group of persons or entity shall have any right in
any specific security or property, or in any item of cash other than an
undivided interest in the whole as specified in this Article as it now
exists or is subsequently amended.
(Source: P.A. 80-841.)
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40 ILCS 5/14-147
(40 ILCS 5/14-147) (from Ch. 108 1/2, par. 14-147)
Sec. 14-147.
Annuities, etc.
- Exempt. Except as provided in this
Article, all moneys in the fund created by this Article, and all securities
and other property of the System, and all annuities and other benefits
payable under this Article, and all accumulated contributions and other
credits of employees in this System, and the right of any person to receive
an annuity or other benefit under this Article, or a refund or return of
contributions, shall not be subject to judgment, execution, garnishment,
attachment, or other seizure by process, in bankruptcy or otherwise, nor to
sale, pledge, mortgage or other alienation, and shall not be assignable. A
person receiving an annuity or benefit, or refund or return of
contributions, may authorize withholding from such annuity, benefit, refund
or return of contributions in accordance with the provisions of the "State
Salary and Annuity Withholding Act", approved August 21, 1961, as now or
hereafter amended.
The General Assembly finds and declares that the amendment to this
Section made by this amendatory Act of 1989 is a clarification of existing
law, and an indication of its previous intent in enacting and amending
this Section. Notwithstanding Section 1-103.1, application of this
amendment shall not be limited to persons in service on or after the
effective date of this amendatory Act of 1989.
(Source: P.A. 86-273 .)
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40 ILCS 5/14-147.5 (40 ILCS 5/14-147.5) Sec. 14-147.5. 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 | | eligible to receive a retirement annuity under this Article;
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| (3) has not received any retirement annuity under
| | (4) has not made the election under Section 14-147.6.
"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. An eligible person is limited to one calculation and offer per calendar year. 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
| | of that return to active service shall be based solely on the person's creditable service arising from the return to active service.
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| (2) The accelerated pension benefit payment may not
| | be repaid to the System, and the terminated creditable service may not under any circumstances be reinstated.
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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 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.)
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40 ILCS 5/14-147.6 (40 ILCS 5/14-147.6) Sec. 14-147.6. 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 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 | | annuity under this Article;
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| (3) meets the age and service requirements for
| | receiving a retirement annuity under this Article;
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| (4) has not received any retirement annuity under
| | (5) has not made the election under Section 14-147.5.
(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
| | increase in retirement annuity shall be calculated in accordance with the formula provided under subsection (b-5); and
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| (2) the accelerated pension benefit payment may not
| | (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 to the System, and the System shall transfer the amount into a 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.)
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40 ILCS 5/14-148
(40 ILCS 5/14-148) (from Ch. 108 1/2, par. 14-148)
Sec. 14-148.
Fraud.
Any person who knowingly makes any false statement,
or falsifies or
permits to be falsified any record of this system, in any attempt to
defraud the system, is guilty of a Class A misdemeanor.
(Source: P.A. 80-841.)
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40 ILCS 5/14-148.1 (40 ILCS 5/14-148.1) Sec. 14-148.1. Mistake in benefit. If the System mistakenly sets any benefit at an incorrect amount, it shall recalculate the benefit as soon as may be practicable after the mistake is discovered. If the benefit was mistakenly set too low, the System shall make a lump sum payment to the recipient of an amount equal to the difference between the benefits that should have been paid and those actually paid. If the benefit was mistakenly set too high, the System may recover the amount overpaid from the recipient thereof, either directly or by deducting such amount from the remaining benefits payable to the recipient. However, if (1) the amount of the benefit was mistakenly set too high, and (2) the error was undiscovered for 3 years or longer, and (3) the error was not the result of incorrect information supplied by the affected member or beneficiary, then upon discovery of the mistake the benefit shall be adjusted to the correct level, but the recipient of the benefit need not repay to the System the excess amounts received in error. This Section applies to all mistakes in benefit calculations that occur before, on, or after the effective date of this amendatory Act of the 98th General Assembly.
(Source: P.A. 98-1117, eff. 8-26-14.) |
40 ILCS 5/14-148.5 (40 ILCS 5/14-148.5) Sec. 14-148.5. Indemnification of financial institution for recovery of overpayment. The System may indemnify a bank, savings and loan association, or other financial institution insured by an agency of the federal government as necessary to recover for the System any benefit overpayment that the System has made to the financial institution on behalf of a member.
(Source: P.A. 102-210, eff. 7-30-21.) |
40 ILCS 5/14-149
(40 ILCS 5/14-149) (from Ch. 108 1/2, par. 14-149)
Sec. 14-149. Felony conviction. None of the benefits herein provided for
shall be paid to any person
who is convicted of any felony relating to or arising out of or in
connection with his service as an employee.
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 employee from whom the benefit results. This Section shall not operate to impair any contract or vested right
heretofore acquired 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.
All future entrants entering service subsequent to July 9, 1955 shall
be deemed to have consented to the provisions of this section as a
condition of coverage, 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 5/14-150
(40 ILCS 5/14-150) (from Ch. 108 1/2, par. 14-150)
Sec. 14-150.
Administrative review.
The provisions of 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 retirement
board provided for under this Article. The term "administrative
decision" is defined as in Section 3-101 of the Code of Civil Procedure.
(Source: P.A. 82-783.)
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40 ILCS 5/14-151
(40 ILCS 5/14-151) (from Ch. 108 1/2, par. 14-151)
Sec. 14-151.
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: P.A. 80-841.)
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40 ILCS 5/14-152
(40 ILCS 5/14-152) (from Ch. 108 1/2, par. 14-152)
Sec. 14-152.
The amendments to Sections 14-123, 14-123.1 and 14-124 of
this Article (relating to attainment of age 70) made by this amendatory
Act of 1989 shall be retroactive to January 1, 1987.
(Source: P.A. 86-272.)
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40 ILCS 5/14-152.1 (40 ILCS 5/14-152.1) Sec. 14-152.1. 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 96-37, Public Act 100-23, Public Act 100-587, Public Act 100-611, Public Act 101-10, Public Act 101-610, Public Act 102-210, or this amendatory Act of the 102nd General Assembly.
(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. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; 101-610, eff. 1-1-20; 102-210, eff. 7-30-21; 102-856, eff. 1-1-23; 102-956, eff. 5-27-22 .) |
40 ILCS 5/14-152.2 (40 ILCS 5/14-152.2)
Sec. 14-152.2. New benefit increases. The General Assembly finds and declares that the amendment to Section 14-104 made by this amendatory Act of the 95th General Assembly that allows members to establish creditable service for certain participation in the University of Illinois Government Public Service Internship Program (GPSI) constitutes a new benefit increase within the meaning of Section 14-152.1. Funding for this new benefit increase will be provided by additional employee contributions under subsection (r) of Section 14-104.
(Source: P.A. 95-652, eff. 10-11-07.) |
40 ILCS 5/14-153.3 (40 ILCS 5/14-153.3) Sec. 14-153.3. Termination of plan. Upon plan termination, a member's interest in the pension fund will be nonforfeitable.
(Source: P.A. 98-1117, eff. 8-26-14.) |
40 ILCS 5/14-155
(40 ILCS 5/14-155)
Sec. 14-155. (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 5/14-156
(40 ILCS 5/14-156)
Sec. 14-156. (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. 15
(40 ILCS 5/Art. 15 heading)
ARTICLE 15.
STATE UNIVERSITIES RETIREMENT SYSTEM
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40 ILCS 5/15-101
(40 ILCS 5/15-101) (from Ch. 108 1/2, par. 15-101)
Sec. 15-101.
Creation of system.
A
retirement system is created to provide
retirement annuities and other benefits for employees,
as defined in this
Article, and their dependents.
The system shall be known and may be cited as State Universities Retirement
System. All the business of the system
shall be transacted in that name.
(Source: P.A. 83-1440.)
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40 ILCS 5/15-102
(40 ILCS 5/15-102) (from Ch. 108 1/2, par. 15-102)
Sec. 15-102. Terms defined. The terms used in this Article shall have the
meanings ascribed to them in Sections 15-103 through 15-198,
except when the context otherwise requires.
(Source: P.A. 98-92, eff. 7-16-13.)
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40 ILCS 5/15-103
(40 ILCS 5/15-103) (from Ch. 108 1/2, par. 15-103)
Sec. 15-103.
System.
"System": The State Universities Retirement System.
(Source: P.A. 83-1440.)
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40 ILCS 5/15-103.1
(40 ILCS 5/15-103.1)
Sec. 15-103.1.
Traditional Benefit Package.
"Traditional benefit
package":
The defined benefit retirement program maintained under the System which
includes retirement annuities payable directly from the System as provided in
Sections 15-135 through 15-140 (but disregarding Section 15-136.4), disability
retirement annuities payable under Section 15-153.2, death benefits payable
directly from the System as provided in Sections 15-141 through 15-144,
survivors insurance benefits payable directly from the System as provided in
Sections 15-145 through 15-149, and contribution refunds as provided in Section
15-154. The traditional benefit package also includes disability benefits as
provided in Sections 15-150 through 15-153.3.
(Source: P.A. 90-766, eff. 8-14-98.)
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40 ILCS 5/15-103.2
(40 ILCS 5/15-103.2)
Sec. 15-103.2.
Portable Benefit Package.
"Portable benefit package": The
defined benefit retirement program maintained under the System which includes
retirement annuities payable directly from the System as provided in Sections
15-135 through 15-139 (specifically including Section 15-136.4), disability
retirement annuities payable under Section 15-153.2, death benefits payable
directly from the System as provided in Sections 15-141 through 15-144, and
contribution refunds as provided in Section 15-154. The portable benefit
package also includes disability benefits as provided in Sections 15-150
through 15-153.3. The portable benefit package does not include the survivors
insurance benefits payable directly from the System as provided in Sections
15-145 through 15-149.
(Source: P.A. 90-766, eff. 8-14-98.)
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40 ILCS 5/15-103.3
(40 ILCS 5/15-103.3)
Sec. 15-103.3.
Self-Managed Plan.
"Self-managed plan": The defined
contribution retirement program maintained under the System as described in
Section 15-158.2. The self-managed plan also includes disability benefits as
provided in Sections 15-150 through 15-153.3 (but disregarding disability
retirement annuities under Section 15-153.2). The self-managed plan does not
include retirement annuities, death benefits, or survivors insurance benefits
payable directly from the System as provided in Sections 15-135 through 15-149
and Section 15-153.2, or refunds determined under Section 15-154.
(Source: P.A. 90-766, eff. 8-14-98.)
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40 ILCS 5/15-104
(40 ILCS 5/15-104) (from Ch. 108 1/2, par. 15-104)
Sec. 15-104.
The 1941 Act.
"The 1941 Act": "An Act to provide for the creation, maintenance and
administration of a Retirement System for the benefit of the staff members
and employees of the state universities and certain affiliated
organizations, certain other state educational and scientific agencies, and
the survivors, dependents and other beneficiaries of such employees",
approved July 21, 1941 as amended, and repealed in 1963.
(Source: P.A. 83-1440.)
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40 ILCS 5/15-105
(40 ILCS 5/15-105) (from Ch. 108 1/2, par. 15-105)
Sec. 15-105.
Board.
"Board": The Board of Trustees of the System.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/15-106
(40 ILCS 5/15-106) (from Ch. 108 1/2, par. 15-106)
Sec. 15-106. Employer. "Employer": The University of Illinois, Southern
Illinois University, Chicago State University, Eastern Illinois University,
Governors State University, Illinois State University, Northeastern Illinois
University, Northern Illinois University, Western Illinois University, the
State Board of Higher Education, the Illinois Mathematics and Science Academy,
the University Civil Service Merit Board, the Board of
Trustees of the State Universities Retirement System, the Illinois Community
College Board, community college
boards, any association of community college boards organized under Section
3-55 of the Public Community College Act, the Board of Examiners established
under the Illinois Public Accounting Act, and, only during the period for which
employer contributions required under Section 15-155 are paid, the following
organizations: the alumni associations, the foundations and the athletic
associations which are affiliated with the universities and colleges included
in this Section as employers. An individual who begins employment on or after the effective date of this amendatory Act of the 99th General Assembly with any association of community college boards organized under Section 3-55 of the Public Community College Act, the Association of Illinois Middle-Grade Schools, the Illinois Association of School Administrators, the Illinois Association for Supervision and Curriculum Development, the Illinois Principals Association, the Illinois Association of School Business Officials, the Illinois Special Olympics, or an entity not defined as an employer in this Section shall not be deemed an employee for the purposes of this Article with respect to that employment and shall not be eligible to participate in the System with respect to that employment; provided, however, that those individuals who are both employed by such an entity and are participating in the System with respect to that employment on the effective date of this amendatory Act of the 99th General Assembly shall be allowed to continue as participants in the System for the duration of that employment. A department as defined in Section 14-103.04 is
an employer for any person appointed by the Governor under the Civil
Administrative Code of Illinois who is a participating employee as defined in
Section 15-109. The Department of Central Management Services is an employer with respect to persons employed by the State Board of Higher Education in positions with the Illinois Century Network as of June 30, 2004 who remain continuously employed after that date by the Department of Central Management Services in positions with the Illinois Century Network, the Bureau of Communication and Computer Services, or, if applicable, any successor bureau or the Department of Innovation and Technology.
The cities of Champaign and Urbana shall be considered
employers, but only during the period for which contributions are required to
be made under subsection (b-1) of Section 15-155 and only with respect to
individuals described in subsection (h) of Section 15-107.
(Source: P.A. 99-830, eff. 1-1-17; 99-897, eff. 1-1-17; 100-611, eff. 7-20-18.)
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40 ILCS 5/15-107
(40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
Sec. 15-107. Employee.
(a) "Employee" means any member of the educational, administrative,
secretarial, clerical, mechanical, labor or other staff of an employer
whose employment is permanent and continuous or who is employed in a
position in which services are expected to be rendered on a continuous
basis for at least 4 months or one academic term, whichever is less, who
(A) receives payment for personal services on a warrant issued pursuant to
a payroll voucher certified by an employer and drawn by the State
Comptroller upon the State Treasurer or by an employer upon trust, federal
or other funds, or (B) is on a leave of absence without pay. Employment
which is irregular, intermittent or temporary shall not be considered
continuous for purposes of this paragraph.
However, a person is not an "employee" if he or she:
(1) is a student enrolled in and regularly attending | | classes in a college or university which is an employer, and is employed on a temporary basis at less than full time;
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(2) is currently receiving a retirement annuity or a
| | disability retirement annuity under Section 15-153.2 from this System;
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(3) is on a military leave of absence;
(4) is eligible to participate in the Federal Civil
| | Service Retirement System and is currently making contributions to that system based upon earnings paid by an employer;
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(5) is on leave of absence without pay for more than
| | 60 days immediately following termination of disability benefits under this Article;
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(6) is hired after June 30, 1979 as a public service
| | employment program participant under the Federal Comprehensive Employment and Training Act and receives earnings in whole or in part from funds provided under that Act; or
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(7) is employed on or after July 1, 1991 to perform
| | services that are excluded by subdivision (a)(7)(f) or (a)(19) of Section 210 of the federal Social Security Act from the definition of employment given in that Section (42 U.S.C. 410).
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(b) Any employer may, by filing a written notice with the board, exclude
from the definition of "employee" all persons employed pursuant to a federally
funded contract entered into after July 1, 1982 with a federal military
department in a program providing training in military courses to federal
military personnel on a military site owned by the United States Government,
if this exclusion is not prohibited by the federally funded contract or
federal laws or rules governing the administration of the contract.
(c) Any person appointed by the Governor under the Civil Administrative
Code of Illinois is an employee, if he or she is a participant in this
system on the effective date of the appointment.
(d) A participant on lay-off status under civil service rules is
considered an employee for not more than 120 days from the date of the lay-off.
(e) A participant is considered an employee during (1) the first 60 days
of disability leave, (2) the period, not to exceed one year, in which his
or her eligibility for disability benefits is being considered by the board
or reviewed by the courts, and (3) the period he or she receives disability
benefits under the provisions of Section 15-152, workers' compensation or
occupational disease benefits, or disability income under an insurance
contract financed wholly or partially by the employer.
(f) Absences without pay, other than formal leaves of absence, of less
than 30 calendar days, are not considered as an interruption of a person's
status as an employee. If such absences during any period of 12 months
exceed 30 work days, the employee status of the person is considered as
interrupted as of the 31st work day.
(g) A staff member whose employment contract requires services during
an academic term is to be considered an employee during the summer and
other vacation periods, unless he or she declines an employment contract
for the succeeding academic term or his or her employment status is
otherwise terminated, and he or she receives no earnings during these periods.
(h) An individual who was a participating employee employed in the fire
department of the University of Illinois's Champaign-Urbana campus immediately
prior to the elimination of that fire department and who immediately after the
elimination of that fire department became employed by the fire department of
the City of Urbana or the City of Champaign shall continue to be considered as
an employee for purposes of this Article for so long as the individual remains
employed as a firefighter by the City of Urbana or the City of Champaign. The
individual shall cease to be considered an employee under this subsection (h)
upon the first termination of the individual's employment as a firefighter by
the City of Urbana or the City of Champaign.
(i) An individual who is employed on a full-time basis as an officer
or employee of a statewide teacher organization that serves System
participants or an officer of a national teacher organization that serves
System participants may participate in the System and shall be deemed an
employee, provided that (1) the individual has previously earned
creditable service under this Article, (2) the individual files with the
System an irrevocable election to become a participant before January 5, 2012 (the effective date of Public Act 97-651), (3) the
individual does not receive credit for that employment under any other Article
of this Code, and (4) the individual first became a full-time employee of the teacher organization and becomes a participant before January 5, 2012 (the effective date of Public Act 97-651). An employee under this subsection (i) is responsible for paying
to the System both (A) employee contributions based on the actual compensation
received for service with the teacher organization and (B) employer
contributions equal to the normal costs (as defined in Section 15-155)
resulting from that service; all or any part of these contributions may be
paid on the employee's behalf or picked up for tax purposes (if authorized
under federal law) by the teacher organization.
A person who is an employee as defined in this subsection (i) may establish
service credit for similar employment prior to becoming an employee under this
subsection by paying to the System for that employment the contributions
specified in this subsection, plus interest at the effective rate from the
date of service to the date of payment. However, credit shall not be granted
under this subsection for any such prior employment for which the applicant
received credit under any other provision of this Code, or during which
the applicant was on a leave of absence under Section 15-113.2.
(j) A person employed by the State Board of Higher Education in a position with the Illinois Century Network as of June 30, 2004 shall be considered to be an employee for so long as he or she remains continuously employed after that date by the Department of Central Management Services in a position with the Illinois Century Network, the Bureau of Communication and Computer Services, or, if applicable, any successor bureau
or the Department of Innovation and Technology and meets the requirements of subsection (a).
(k) The Board shall promulgate rules with respect to determining whether any person is an employee within the meaning of this Section. In the case of doubt as to whether any person is an employee within the meaning of this
Section or any rule adopted by the Board, the decision of the Board shall be
final.
(Source: P.A. 101-81, eff. 7-12-19; 101-321, eff. 8-9-19.)
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40 ILCS 5/15-108
(40 ILCS 5/15-108) (from Ch. 108 1/2, par. 15-108)
Sec. 15-108.
Participant.
"Participant": A person participating
in this system as specified in Section 15-134.
(Source: P.A. 83-1440.)
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40 ILCS 5/15-108.1 (40 ILCS 5/15-108.1) Sec. 15-108.1. Tier 1 member. "Tier 1 member": A participant or an annuitant of a retirement annuity under this Article, other than a participant in the self-managed plan under Section 15-158.2, who first became a participant or member before January 1, 2011 under any reciprocal retirement system or pension fund established under this Code, other than a retirement system or pension fund established under Articles 2, 3, 4, 5, 6, or 18 of this Code. "Tier 1 member" includes a person who first became a participant under this System before January 1, 2011 and who accepts a refund and is subsequently reemployed by an employer on or after January 1, 2011.
(Source: P.A. 98-92, eff. 7-16-13.) |
40 ILCS 5/15-108.2 (40 ILCS 5/15-108.2) Sec. 15-108.2. Tier 2 member. "Tier 2 member": A person who first becomes a participant under this Article on or after January 1, 2011 and before the implementation date, as defined under subsection (a) of Section 1-161, determined by the Board, other than a person in the self-managed plan established under Section 15-158.2 or a person who makes the election under subsection (c) of Section 1-161, unless the person is otherwise a Tier 1 member. The changes made to this Section by this amendatory Act of the 98th General Assembly are a correction of existing law and are intended to be retroactive to the effective date of Public Act 96-889, notwithstanding the provisions of Section 1-103.1 of this Code.
(Source: P.A. 100-23, eff. 7-6-17; 100-563, eff. 12-8-17.) |
40 ILCS 5/15-109
(40 ILCS 5/15-109) (from Ch. 108 1/2, par. 15-109)
Sec. 15-109.
Participating employee.
"Participating employee": A
participant who at the time is an employee.
(Source: P.A. 83-1440.)
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40 ILCS 5/15-110
(40 ILCS 5/15-110) (from Ch. 108 1/2, par. 15-110)
Sec. 15-110. Basic compensation. "Basic compensation": Subject to Section 15-111.5, the gross
basic rate of salary or wages payable by an employer, including: (1) the value of maintenance, board, living quarters, | | personal laundry, or other allowances furnished in lieu of salary which are considered gross income under the federal Internal Revenue Code of 1986, as amended;
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| (2) the employee contributions required under Section
| | (3) the amount paid by any employer to a custodial
| | account for investment in regulated investment company stocks for the benefit of the employee pursuant to the University Employees Custodial Accounts Act;
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| (4) the amount of the premium payable by any employer
| | to an insurance company or companies on an annuity contract, pursuant to the employee's election to accept a reduction in earnings or forego an increase in earnings under Section 30c of the State Finance Act, or a tax-sheltered annuity plan approved by any employer; and
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| (5) the amount of any elective deferral to a deferred
| | compensation plan established under this Article or Article 24 of this Code pursuant to Section 457(b) of the federal Internal Revenue Code of 1986, as amended.
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| Basic compensation does not include (1)
salary or wages for overtime or other extra service; (2) prospective salary
or wages under a summer teaching contract not yet entered upon; and (3)
overseas differential allowances, quarters allowances, post allowances,
educational allowances and transportation allowances paid by an employer
under a contract with the federal government or its agencies for
services rendered in other countries. If an employee elects to receive in
lieu of cash salary or wages, fringe benefits which are not taxable under
the federal Internal Revenue Code of 1986, as amended, the amount of the cash salary or wages
which is waived shall be included in determining basic compensation.
(Source: P.A. 101-321, eff. 8-9-19.)
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40 ILCS 5/15-111
(40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
Sec. 15-111. Earnings.
(a) "Earnings": Subject to Section 15-111.5, an amount paid for personal services equal to the sum of
the basic compensation plus extra compensation for summer teaching,
overtime or other extra service. For periods for which an employee receives
service credit under subsection (c) of Section 15-113.1 or Section 15-113.2,
earnings are equal to the basic compensation on which contributions are
paid by the employee during such periods. Compensation for employment which is
irregular, intermittent and temporary shall not be considered earnings, unless
the participant is also receiving earnings from the employer as an employee
under Section 15-107.
With respect to transition pay paid by the University of Illinois to a
person who was a participating employee employed in the fire department of
the University of Illinois's Champaign-Urbana campus immediately prior to
the elimination of that fire department:
(1) "Earnings" includes transition pay paid to the | | employee on or after the effective date of this amendatory Act of the 91st General Assembly.
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(2) "Earnings" includes transition pay paid to the
| | employee before the effective date of this amendatory Act of the 91st General Assembly only if (i) employee contributions under Section 15-157 have been withheld from that transition pay or (ii) the employee pays to the System before January 1, 2001 an amount representing employee contributions under Section 15-157 on that transition pay. Employee contributions under item (ii) may be paid in a lump sum, by withholding from additional transition pay accruing before January 1, 2001, or in any other manner approved by the System. Upon payment of the employee contributions on transition pay, the corresponding employer contributions become an obligation of the State.
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(b) For a Tier 2 member, the annual earnings shall not exceed $106,800; however, that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) one half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the retirement systems and pension funds by November 1 of each year.
(c) With each submission of payroll information in the manner prescribed by the System, the
employer shall certify that the payroll information is correct and complies with all applicable
State and federal laws.
(Source: P.A. 98-92, eff. 7-16-13; 99-897, eff. 1-1-17 .)
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40 ILCS 5/15-111.5 (40 ILCS 5/15-111.5) Sec. 15-111.5. Basic compensation and earnings restrictions. For an employee who first
becomes a participant on or after the effective date of this amendatory Act of the 99th General
Assembly, basic compensation under Section 15-110 and earnings under Section 15-111 shall
not include bonuses, housing allowances, vehicle allowances, social club dues, or athletic club dues.
(Source: P.A. 99-897, eff. 1-1-17 .) |
40 ILCS 5/15-112
(40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
Sec. 15-112. Final rate of earnings. "Final rate of earnings": (a) This subsection (a) applies only to a Tier 1 member. For an employee who is paid on an hourly basis or who receives an annual salary
in installments during 12 months of each academic year, the average annual
earnings during the 48 consecutive calendar month period ending with the last
day of final termination of employment or the 4 consecutive academic years of
service in which the employee's earnings were the highest, whichever is
greater.
For any other employee, the average annual earnings during the 4 consecutive
academic years of service in which his or her earnings were the highest.
For an employee with less than 48 months or 4 consecutive academic years of
service, the average earnings during his or her entire period of service.
The earnings of an employee with more than 36 months of service under item (a) of Section 15-113.1 prior to the
date of becoming a participant are, for such period, considered equal to the
average earnings during the last 36 months of such service. (b) This subsection (b) applies to a Tier 2 member. For an employee who is paid on an hourly basis or who receives an annual salary in installments during 12 months of each academic year, the average annual earnings obtained by dividing by 8 the total earnings of the employee during the 96 consecutive months in which the total earnings were the highest within the last 120 months prior to termination. For any other employee, the average annual earnings during the 8 consecutive academic years within the 10 years prior to termination in which the employee's earnings were the highest. For an employee with less than 96 consecutive months or 8 consecutive academic years of service, whichever is necessary, the average earnings during his or her entire period of service. (c) For an
employee on leave of absence with pay, or on leave of absence without pay
who makes contributions during such leave, earnings are assumed to be equal
to the basic compensation on the date the leave began. (d) For an employee on
disability leave, earnings are assumed to be equal to the basic compensation
on the date disability occurs or the average earnings during the 24 months
immediately preceding the month in which disability occurs, whichever is
greater.
(e) For a Tier 1 member who retires on or after the effective date of this
amendatory Act of 1997 with at least 20 years of service as a firefighter or
police officer under this Article, the final rate of earnings shall be the
annual rate of earnings received by the participant on his or her last day as a
firefighter or police officer under this Article, if that is greater than the
final rate of earnings as calculated under the other provisions of this
Section.
(f) If a Tier 1 member is an employee for at least
6 months during the academic year in which his or her employment
is terminated, the annual final rate of earnings shall be 25% of the sum
of (1) the annual basic compensation for that year, and (2) the amount
earned during the 36 months immediately preceding that year, if this is
greater than the final rate of earnings as calculated under the other
provisions of this Section.
(g) In the determination of the final rate of earnings for an employee, that
part of an employee's earnings for any academic year beginning after June 30,
1997, which exceeds the employee's earnings with that employer for the
preceding year by more than 20 percent shall be excluded; in the event
that an employee has more than one employer
this limitation shall be calculated separately for the earnings with
each employer. In making such calculation, only the basic compensation of
employees shall be considered, without regard to vacation or overtime or to
contracts for summer employment. Beginning September 1, 2024, this subsection (g) also applies to an employee who has been employed at 1/2 time or less for 3 or more years.
(h) The following are not considered as earnings in determining final rate of
earnings: (1) severance or separation pay, (2) retirement pay, (3)
payment for unused sick leave, and (4) payments from an employer for
the period used in determining final rate of earnings for any purpose other
than (i) services rendered, (ii) leave of absence or vacation granted
during that period, and (iii) vacation of up to 56 work days allowed upon
termination of employment; except that, if the benefit has been collectively
bargained between the employer and the recognized collective bargaining agent
pursuant to the Illinois Educational Labor Relations Act, payment received
during a period of up to 2 academic years for unused sick leave may be
considered as earnings in accordance with the applicable collective bargaining
agreement, subject to the 20% increase limitation of this Section. Any unused
sick leave considered as earnings under this Section shall not be taken into
account in calculating service credit under Section 15-113.4.
(i) Intermittent periods of service shall be considered as consecutive in
determining final rate of earnings.
(Source: P.A. 103-548, eff. 8-11-23.)
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40 ILCS 5/15-113
(40 ILCS 5/15-113) (from Ch. 108 1/2, par. 15-113)
Sec. 15-113. Service. "Service": The periods defined in Sections
15-113.1 through 15-113.9 and Sections 15-113.11 through 15-113.12.
(Source: P.A. 100-556, eff. 12-8-17.)
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40 ILCS 5/15-113.1
(40 ILCS 5/15-113.1) (from Ch. 108 1/2, par. 15-113.1)
Sec. 15-113.1.
Service for employment with an employer defined under
Section 15-106. "Service for employment with an employer defined under
Section 15-106": Includes the following periods:
(a) periods prior to September 1, 1941 during which a person was permanently
and continuously employed by an employer.
(b) periods after August 31, 1941 during which a person was an employee
except (1) those during which the employee elected not to participate or
was ineligible to participate, (2) those during which the employee was
on leave of absence at less than 50% pay, except military and disability
leave, but failed, in accordance with rules prescribed by the board, to
elect to make and to pay the contributions required under Section 15-157,
and (3) those during which the employee's eligibility for disability
benefit was being considered by the board or reviewed by the courts, if the
disability benefit was denied.
(c) periods after August 31, 1941 during which a person was employed at
least one-half time for an employer preceding the date of becoming a
participant or during which a person was employed at least one-half time for an employer
not subject to "The 1941 Act" which employer has since been included as
an employer under "The 1941 Act", or this Article, provided the person makes
the contributions required under Section 15-157 based on the rate of earnings
during this period equal to the basic compensation on the date of becoming
a participating employee together with compound interest from the date participation
began to the date payment is received by the board at the rate of 6% per
annum through August 31, 1982, and at the effective rates after that date,
and provided that the contributions required under Section 15-155
are also made. However, no service credit shall be allowed for any period
of employment during which an individual is excluded from the definition
of an employee as provided under subsection (b) of Section 15-107.
(Source: P.A. 84-1028.)
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40 ILCS 5/15-113.2
(40 ILCS 5/15-113.2) (from Ch. 108 1/2, par. 15-113.2)
Sec. 15-113.2.
Service for leaves of absence.
"Service for leaves of
absence" includes those periods of leaves of absence at less than 50%
pay, except military leave and periods of disability leave in excess of 60
days, for which the employee pays the contributions required under Section
15-157 in accordance with rules prescribed by the board based upon the
employee's basic compensation on the date the leave begins, or in the case
of leave for service with a teacher organization, based upon the actual
compensation received by the employee for such service after January 26,
1988, if the employee so elects within 30 days of that date or the date the
leave for service with a teacher organization begins, whichever is later;
provided that the employee (1) returns to employment covered by this system
at the expiration of the leave, or within 30 days after the termination of
a disability which occurs during the leave and continues this employment
at a percentage of time equal to or greater than the percentage of time
immediately preceding the leave of absence for at least 8 consecutive
months or a period equal to the period of the leave,
whichever is less, or (2) is precluded from meeting the foregoing
conditions because of disability or death. If service credit is denied
because the employee fails to meet these conditions, the contributions
covering the leave of absence shall be refunded without interest. The
return to employment condition does not apply if the leave of absence is
for service with a teacher organization.
Service credit provided under this Section shall not exceed 3 years in
any period of 10 years, unless the employee is on special leave granted
by the employer for service with a teacher organization. Commencing with
the fourth year in any period of 10 years, a participant on such special
leave is also required to pay employer contributions equal to the normal
cost as defined in Section 15-155, based upon the employee's basic compensation
on the date the leave begins, or based upon the actual compensation
received by the employee for service with a teacher organization if the
employee has so elected.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
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40 ILCS 5/15-113.3
(40 ILCS 5/15-113.3) (from Ch. 108 1/2, par. 15-113.3)
Sec. 15-113.3.
Service for periods of military service.
"Service for
periods of military service": Those periods, not exceeding 5 years, during
which a person served in the armed forces of the United States, of which
all but 2 years must have immediately followed a period of employment
with an employer under this System or the State Employees' Retirement
System of Illinois; provided that the person received a discharge other
than dishonorable and again became an employee under this System within one
year after discharge. However, for the up to 2 years of military service
not immediately following employment, the applicant must make contributions
to the System equal to (1) 8% of the employee's basic compensation on the last date as a
participating employee prior to such military service, or on the first date as
a participating employee after such military service, whichever is greater,
plus (2) an amount determined by the board to be equal to the employer's normal
cost of the benefits accrued for such military service, plus (3) interest on
items (1) and (2) at the effective rate from the later of the date of first
membership in the System or the date of conclusion of military service to the
date of payment. The change in the required contribution for purchased
military credit made by this amendatory Act of 1993 does not entitle any person
to a refund of contributions already paid. The contributions paid under this
Section are not normal contributions as defined in Section 15-114 or additional
contributions as defined in Section 15-115.
The changes to this Section made by this amendatory Act of 1991 shall
apply not only to persons who on or after its effective date are in service
under the System, but also to persons whose employment terminated prior to
that date, whether or not the person is an annuitant on that date. In the
case of an annuitant who applies for credit allowable under this Section
for a period of military service that did not immediately follow
employment, and who has made the required contributions for such credit,
the annuity shall be recalculated to include the additional service credit,
with the increase taking effect on the date the System received written
notification of the annuitant's intent to purchase the credit, if
payment of all the required contributions is made within 60 days of such
notice, or else on the first annuity payment date following the date of
payment of the required contributions. In calculating the automatic annual
increase for an annuity that has been recalculated under this Section, the
increase attributable to the additional service allowable under this
amendatory Act of 1991 shall be included in the calculation of automatic
annual increases accruing after the effective date of the recalculation.
(Source: P.A. 93-347, eff. 7-24-03.)
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40 ILCS 5/15-113.4
(40 ILCS 5/15-113.4) (from Ch. 108 1/2, par. 15-113.4)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 15-113.4. Service for unused sick leave. "Service for unused
sick leave": A person who first becomes a participant before the effective date of this amendatory Act of the 98th
General Assembly and who is an employee under this System or one of
the other systems subject to Article 20 of this Code within 60 days
immediately preceding the date on which his or her retirement annuity
begins, is entitled to credit for service for that portion of unused sick
leave earned in the course of employment with an employer and credited on
the date of termination of employment by an employer for which payment is
not received, in accordance with the following schedule: 30 through 90
full calendar days and 20 through 59 full work days of unused sick leave,
1/4 of a year of service; 91 through 180 full calendar days and 60 through
119 full work days, 1/2 of a year of service; 181 through 270 full calendar
days and 120 through 179 full work days, 3/4 of a year of service; 271
through 360 full calendar days and 180 through 240 full work days, one year
of service.
Only uncompensated, unused sick leave earned in accordance with an
employer's sick leave accrual policy generally applicable to employees or a
class of employees shall be taken into account in calculating service credit
under this Section. Any uncompensated, unused sick leave granted by an
employer to facilitate the hiring, retirement, termination, or other special
circumstances of an employee shall not be taken into account in calculating
service credit under this Section.
If a participant transfers from one employer to another, the
unused sick leave credited by the previous employer shall be considered in
determining service to be credited under this Section, even if the
participant terminated service prior to the effective date of P.A. 86-272
(August 23, 1989); if necessary, the retirement annuity shall be
recalculated to reflect such sick leave credit. Each employer shall
certify to the board the number of days of unused sick leave accrued to the
participant's credit on the date that the participant's status as an
employee terminated. This period of unused sick leave shall not be
considered in determining the date the retirement annuity begins. A person
who first becomes a participant on or after the effective date
of this amendatory Act of the 98th General Assembly shall not
receive service credit for unused sick leave.
(Source: P.A. 98-599, eff. 6-1-14 .) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 15-113.4.
Service for unused sick leave.
"Service for unused
sick leave": A participant who is an employee under this System or one of
the other systems subject to Article 20 of this Code within 60 days
immediately preceding the date on which his or her retirement annuity
begins, is entitled to credit for service for that portion of unused sick
leave earned in the course of employment with an employer and credited on
the date of termination of employment by an employer for which payment is
not received, in accordance with the following schedule: 30 through 90
full calendar days and 20 through 59 full work days of unused sick leave,
1/4 of a year of service; 91 through 180 full calendar days and 60 through
119 full work days, 1/2 of a year of service; 181 through 270 full calendar
days and 120 through 179 full work days, 3/4 of a year of service; 271
through 360 full calendar days and 180 through 240 full work days, one year
of service.
Only uncompensated, unused sick leave earned in accordance with an
employer's sick leave accrual policy generally applicable to employees or a
class of employees shall be taken into account in calculating service credit
under this Section. Any uncompensated, unused sick leave granted by an
employer to facilitate the hiring, retirement, termination, or other special
circumstances of an employee shall not be taken into account in calculating
service credit under this Section.
If a participant transfers from one employer to another, the
unused sick leave credited by the previous employer shall be considered in
determining service to be credited under this Section, even if the
participant terminated service prior to the effective date of P.A. 86-272
(August 23, 1989); if necessary, the retirement annuity shall be
recalculated to reflect such sick leave credit. Each employer shall
certify to the board the number of days of unused sick leave accrued to the
participant's credit on the date that the participant's status as an
employee terminated. This period of unused sick leave shall not be
considered in determining the date the retirement annuity begins.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
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40 ILCS 5/15-113.5
(40 ILCS 5/15-113.5) (from Ch. 108 1/2, par. 15-113.5)
Sec. 15-113.5.
Service for employment with other public agencies in
this State. "Service for employment with other public agencies in
this State" includes the following periods:
(a) periods during which a person rendered services for the State of
Illinois, prior to January 1, 1944, under employment not covered by this
Article, if (1) such periods would have been considered creditable service
under the State Employees' Retirement System of Illinois had that system been
in effect at that time, and (2) service credit for such periods has not been
granted under the State Employees' Retirement System of Illinois.
(b) periods credited under the State Employees' Retirement System of
Illinois on the date an employee became eligible for participation in the State
Universities Retirement System as a result of a transfer of a State function
from a department, commission or other agency of this State to an employer,
excluding periods as a "covered employee" as defined in Article 14 of this
Code, provided the employee has received a refund of his or her contributions
from the State Employees' Retirement System of Illinois and pays to this system
contributions equal to the amount of the refund together with compound interest
at the rate required for repayment of a refund under Section 15-154 from the
date the refund is received to the date payment is made.
(c) periods credited in a retirement system covering a governmental unit,
as defined in Section 20-107 on the date a person becomes a participant,
if (1) a function of this governmental unit is transferred in whole or in
part to an employer, and (2) the person transfers employment from the
governmental unit to such employer within 6 months after the employer
begins operation of this function, and (3) the person cannot qualify for
a proportional retirement annuity from the retirement system covering this
governmental unit, and (4) the participant receives a refund of his or her
contributions from the retirement system covering this governmental unit
and pays to this system contributions equal to the amount of the refund
together with compound interest from the date the refund is made by the
system to the date payment is received by the board at the rate of 6% per
annum through August 31, 1982, and at the effective rates after that date.
(d) periods during which a participant contributed to the Park Policemen's
Annuity Fund as defined in Section 5-219, provided the participant
and the Chicago Policemen's Annuity Fund pay to this system the required
employee and employer contributions.
(e) periods during which a person rendered services for an athletic
association affiliated with the University of Illinois, provided that (1) the
employee was employed by that athletic association on January 1, 1960, (2)
annuity contracts covering that employment have been purchased by other
retirement systems covering employees of the athletic association, and (3) the
employee files with the board an election to become a participant and assigns
to the board his or her right, title, and interest in those annuity
contracts.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
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40 ILCS 5/15-113.6
(40 ILCS 5/15-113.6) (from Ch. 108 1/2, par. 15-113.6)
Sec. 15-113.6. Service for employment in public schools. "Service for
employment in public schools": Includes
those periods not exceeding the lesser of 10 years or 2/3 of the service
granted under other Sections of this Article dealing with service credit,
during which a person who entered the system after September 1, 1974 was
employed full time by a public common school, public college and public
university, or by an agency or instrumentality of any of the foregoing,
of any state, territory, dependency or possession of the United States of
America, including the Philippine Islands, or a school
operated by or under
the auspices of any agency or department of any other state, if the person
(1) cannot qualify for a retirement pension or other benefit based upon
employer
contributions from another retirement system, exclusive of federal social
security, based in whole or in part upon this employment, and (2) pays the
lesser of (A) an amount equal to 8% of his or her annual basic compensation
on the date of becoming a participating employee subsequent to this service
multiplied by the number of years of such service, together with compound
interest from the date participation begins to the date payment is received
by the board at the rate of 6% per annum through August 31, 1982, and at
the effective rates after that date, and (B) 50% of the actuarial value
of the increase in the retirement annuity provided by this service, and
(3) contributes for at least 5 years subsequent to this employment to one
or more of the following systems: the State Universities Retirement System,
the Teachers' Retirement System of the State of Illinois, and the Public
School Teachers' Pension and Retirement Fund of Chicago.
The service granted under this Section shall not be considered in determining
whether the person has the minimum of 8 years of service required to qualify
for a retirement annuity at age 55 or the 5 years of service required to
qualify for a retirement annuity at age 62 or the 10 years of service required to qualify for a retirement annuity at age 67, as provided in Section 15-135.
The maximum allowable service of 10 years for this governmental employment
shall be reduced by the service credit which is validated under paragraph
(2) of subsection (b) of Section 16-127 and paragraph 1 of Section 17-133.
(Source: P.A. 98-92, eff. 7-16-13.)
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40 ILCS 5/15-113.7
(40 ILCS 5/15-113.7) (from Ch. 108 1/2, par. 15-113.7)
Sec. 15-113.7. Service for other public employment. "Service for
other public employment": Includes those periods not exceeding the lesser of
10 years or 2/3 of the service granted under other Sections of this Article
dealing with service credit, during which a person was employed full time by
the United States government, or by the government of a state, or by a
political subdivision of a state, or by an agency or instrumentality of any of
the foregoing, if the person (1) cannot qualify for a retirement pension or
other benefit based upon employer contributions from another retirement system,
exclusive of federal social security, based in whole or in part upon this
employment, and (2) pays the lesser of (A) an amount equal to 8% of his or her
annual basic compensation on the date of becoming a participating employee
subsequent to this service multiplied by the number of years of such service,
together with compound interest from the date participation begins to the date
payment is received by the board at the rate of 6% per annum through August 31,
1982, and at the effective rates after that date, and (B) 50% of the actuarial
value of the increase in the retirement annuity provided by this service, and
(3) contributes for at least 5 years subsequent to this employment to one or
more of the following systems: the State Universities Retirement System, the
Teachers' Retirement System of the State of Illinois, and the Public School
Teachers' Pension and Retirement Fund of Chicago. If a function of a
governmental unit as defined by Section 20-107 is transferred by law, in whole
or in part to an employer, and an employee transfers employment from this
governmental unit to such employer within 6 months of the transfer of the
function, the payment for service authorized under this Section shall not
exceed the amount which would have been payable for this service to the
retirement system covering the governmental unit from which the function was
transferred.
The service granted under this Section shall not be considered in determining
whether the person has the minimum of 8 years of service required to qualify
for a retirement annuity at age 55 or the 5 years of service required to
qualify for a retirement annuity at age 62, as provided in Section 15-135.
The maximum allowable service of 10 years for this governmental employment
shall be reduced by the service credit which is validated under paragraph
(2) of subsection (b) of Section 16-127 and paragraph one of Section 17-133.
Except as hereinafter provided, this Section shall not apply to
persons who become participants in the system after September 1, 1974.
(Source: P.A. 95-83, eff. 8-13-07.)
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40 ILCS 5/15-113.8
(40 ILCS 5/15-113.8) (from Ch. 108 1/2, par. 15-113.8)
Sec. 15-113.8.
Previous service with employer affiliated alumni and
athletic associations and foundations. "Previous service with employer
affiliated alumni and
athletic associations and foundations": Includes the following periods:
(a) Periods of service prior to October 1, 1959 for employer affiliated
alumni associations and foundations for which service credit has been granted
under the provisions relating to this service in effect on January 1, 1984.
(b) Periods of service prior to October 1, 1966 for affiliated athletic
associations for which service credit has been granted under the provisions
relating to this service in effect on January 1, 1984.
(Source: P.A. 83-1440.)
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40 ILCS 5/15-113.9
(40 ILCS 5/15-113.9) (from Ch. 108 1/2, par. 15-113.9)
Sec. 15-113.9.
Service for employment with the Illinois Mathematics
and Science Academy. A participating employee who was employed by the
Illinois Mathematics and Science Academy prior to February 1, 1987 shall be
entitled to receive service credit under this System for any period of such
employment prior to February 1, 1987 for which the required contributions have
been received by this System. If credit for such employment has
been granted under any other retirement system governed by this Code,
credit for such employment shall not be granted under this System unless
(1) the employee so elects in writing prior to April 1, 1987, and (2) the
credit granted for such employment in the other retirement system has been
terminated, and any employee and employer contributions received therefor
by the other retirement system have been
transmitted by that retirement system to this System. Such other
retirement system shall terminate such credit, and transfer the associated
contributions, upon receiving notice of the election from the Board of this System.
(Source: P.A. 84-1472.)
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40 ILCS 5/15-113.10
(40 ILCS 5/15-113.10) (from Ch. 108 1/2, par. 15-113.10)
Sec. 15-113.10.
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, any chief of the County Police Department or undersheriff
of the County Sheriff's Department who has elected under subparagraph (j) of
Section 9-128.1 to be included within the provisions of Section 9-128.1 of
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 to transfer his or her credits and creditable service accumulated
under this System to such Article 8, 9 or 13 fund. Such creditable
service shall be transferred forthwith. Payment by this System 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 | | applicant through employee contribution, including interest, as of the date of transfer; and
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(2) employer contributions equal in amount to the
| | accumulated employee contributions as determined in item (1) above.
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Participation in this System shall terminate on the date of transfer.
(b) Any such elected city officer, county officer, chief of the County
Police Department, undersheriff of the County Sheriff's Department, or
sanitary
district commissioner may reinstate credits and creditable service
terminated upon receipt of a
refund, by payment to the System of the amount of the refund together with
interest at the rate required for repayment of a refund under Section
15-154 from the date the refund was received to the date of payment.
(c) Any such elected city officer, county officer, chief of the County
Police Department, undersheriff of the County Sheriff's Department, or sanitary
district commissioner who has credits and creditable service under the System
may establish additional credits and creditable service for periods during
which he or she could have elected to participate but did not so elect.
Credits and creditable service may be established by payment to the System of
an amount equal to the contributions that he or she would have made if he or
she had elected to participate, plus regular interest to the date of payment.
(Source: P.A. 89-643, eff. 8-9-96.)
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40 ILCS 5/15-113.11 (40 ILCS 5/15-113.11) Sec. 15-113.11. Service for periods of voluntary or involuntary furlough. (a) A participant may establish creditable service and earnings credit for periods of furlough beginning on or after July 1, 2009 and ending on or before June 30, 2011. To receive this credit, the participant must (i) apply in writing to the System before December 31, 2011; (ii) not receive compensation from an employer for any furlough period; and (iii) make, on an after-tax basis, employee contributions required under Section 15-157 based on the rate of basic compensation during the periods of furlough, plus an amount determined by the Board to be equal to the employer's normal cost of the benefit, plus compounded interest at the actuarially assumed rate from the date of voluntary or involuntary furlough to the date of payment. The participant shall provide, at the time of application, written certification from the employer providing the total number of furlough days a participant has been required to take.
(b) A participant may establish creditable service and earnings credit for periods of furlough beginning on or after July 1, 2015 and ending on or before June 30, 2017. To receive this credit, the participant must (i) apply in writing to the System before December 31, 2018; (ii) not receive compensation from an employer for any furlough period; and (iii) make, on an after-tax basis, employee contributions required under Section 15-157 based on the rate of basic compensation during the periods of furlough, plus an amount determined by the Board to be equal to the employer's normal cost of the benefit, plus compounded interest at the actuarially assumed rate from the date of voluntary or involuntary furlough to the date of payment. The participant shall provide, at the time of application, written certification from the employer providing the total number of furlough days a participant has been required to take. (Source: P.A. 99-897, eff. 1-1-17 .) |
40 ILCS 5/15-113.12 (40 ILCS 5/15-113.12) Sec. 15-113.12. Earnings for periods of voluntary pay reduction taken in lieu of furlough. A participant may establish earnings credit for periods of voluntary pay reduction, taken in lieu of furlough, beginning on or after July 1, 2015 and ending on or before June 30, 2017. To receive this credit, the participant must: (1) apply in writing to the System before December 31, 2018; and (2) make, on an after-tax basis, employee contributions required under Section 15-157 based on the voluntary reduction in pay, plus an amount determined by the Board to be equal to the employer's normal cost of the benefit, plus compounded interest at the actuarially assumed rate from the date of voluntary reduction in pay to the date of payment. The participant shall provide, at the time of application, (i) written certification from the employer providing the total voluntary reduction in pay per pay period for each pay period with a voluntary reduction in pay and (ii) written certification from the employer stating that the voluntary reduction in pay was taken in lieu of furlough.
(Source: P.A. 99-897, eff. 1-1-17 .) |
40 ILCS 5/15-114
(40 ILCS 5/15-114) (from Ch. 108 1/2, par. 15-114)
Sec. 15-114.
Normal contributions.
"Normal contributions": The required
contributions specified under Section
15-157 as normal contributions and amounts paid by a
participant for annuity contracts assigned
to the board in order to obtain service credit for employment by affiliated
alumni associations, foundations, and athletic associations,
and amounts contributed by a participant under Section 15-113.5, Section
15-113.6 and Section 15-113.7.
(Source: P.A. 83-1440.)
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40 ILCS 5/15-115
(40 ILCS 5/15-115) (from Ch. 108 1/2, par. 15-115)
Sec. 15-115.
Additional contributions.
"Additional contributions": The
amounts paid by a participating employee which are specified under Section
15-157 as additional contributions.
(Source: P.A. 83-1440.)
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40 ILCS 5/15-116
(40 ILCS 5/15-116) (from Ch. 108 1/2, par. 15-116)
Sec. 15-116.
Accumulated normal contributions.
"Accumulated normal
contributions": The sum of all normal contributions credited
to an employee's account, together with interest
thereon at the effective rate for the respective years.
(Source: P.A. 83-1440.)
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40 ILCS 5/15-117
(40 ILCS 5/15-117) (from Ch. 108 1/2, par. 15-117)
Sec. 15-117.
Accumulated additional contributions.
"Accumulated
additional contributions": The sum of all additional contributions credited
to an employee's account,
together with interest
thereon at the effective rate for the respective years.
(Source: P.A. 83-1440.)
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40 ILCS 5/15-118
(40 ILCS 5/15-118) (from Ch. 108 1/2, par. 15-118)
Sec. 15-118.
Annuity.
"Annuity": A series of monthly payments,
payable as of the first
day of each calendar month during the annuity payment period, the first
payment to be made as of the first day of the calendar month coincidental
with or next following the first day of the annuity payment period and the
last payment to be made as of the first day of the calendar month in which
the annuitant dies or the annuity
payment period ends. An annuitant may
authorize the board to deduct from the annuity, premiums due under any
group hospital-medical insurance program which is sponsored or approved by
any employer.
(Source: P.A. 83-1440.)
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40 ILCS 5/15-119
(40 ILCS 5/15-119) (from Ch. 108 1/2, par. 15-119)
Sec. 15-119.
Annuitant.
"Annuitant": A person receiving a retirement,
reversionary, survivors or beneficiary annuity or disability retirement
annuity from this System.
(Source: P.A. 83-1440.)
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40 ILCS 5/15-120
(40 ILCS 5/15-120) (from Ch. 108 1/2, par. 15-120)
Sec. 15-120. Beneficiary; survivor annuitant under portable benefit
package. "Beneficiary": The person or persons designated
by the participant or annuitant in the last written designation on file
with the board; or if no person so designated survives, or if no designation
is on file, the estate of the participant or annuitant. Acceptance by the
participant of a refund of accumulated contributions or an accelerated pension benefit payment under Section 15-185.5
shall result in cancellation of all beneficiary designations previously
filed. A spouse whose marriage was dissolved shall be disqualified
as beneficiary unless the spouse was designated as beneficiary after the
effective date of the dissolution of marriage.
After a joint and survivor annuity commences under the portable benefit
package, the survivor annuitant of a joint and survivor annuity is not
disqualified, and may not be removed, as the survivor annuitant by a
dissolution of the survivor's marriage with the participant or annuitant.
(Source: P.A. 101-610, eff. 1-1-20.)
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40 ILCS 5/15-121
(40 ILCS 5/15-121) (from Ch. 108 1/2, par. 15-121)
Sec. 15-121.
Additional annuity.
"Additional annuity": The portion of a retirement annuity derived from
accumulated additional contributions.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/15-122
(40 ILCS 5/15-122) (from Ch. 108 1/2, par. 15-122)
Sec. 15-122.
Reversionary annuity.
"Reversionary annuity": The annuity payable to a beneficiary after the
death of the annuitant as specified in Section 15-140.
(Source: Laws 1963, p. 161 .)
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40 ILCS 5/15-123
(40 ILCS 5/15-123) (from Ch. 108 1/2, par. 15-123)
Sec. 15-123.
Beneficiary annuity.
"Beneficiary annuity": The annuity payable to a beneficiary after the
death of a participant or annuitant as specified in Section 15-144.
(Source: Laws 1963, p. 161 .)
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40 ILCS 5/15-124
(40 ILCS 5/15-124) (from Ch. 108 1/2, par. 15-124)
Sec. 15-124.
Actuarial tables.
"Actuarial tables": Such tabular listings of assumed rates of decrement
such as death, disability, retirement and withdrawal from service,
according to age and sex, including mathematical functions derived from the
rates of probability, combined with an interest discount factor, as are
adopted by the board based upon the experience of the system.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/15-125
(40 ILCS 5/15-125) (from Ch. 108 1/2, par. 15-125)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 15-125. "Prescribed Rate of Interest; Effective Rate of Interest".
(1) "Prescribed rate of interest": The rate of interest to be used in
actuarial valuations and in development of actuarial tables as determined
by the board on the basis of the probable average rate of
interest on a long term basis, based on factors including the expected investment experience; historical and expected fluctuations in the market value of investments; the desirability of minimizing volatility in the rate of investment earnings from year to year; and the provision of reserves for anticipated losses upon sales, redemptions, or other disposition of investments and for variations in interest experience.
(2) "Effective rate of interest": For a fiscal year concluding no later than June 30, 2014, the interest rate for all or any part of
a fiscal year that is determined by the board based
on factors including the system's past and expected investment experience;
historical and expected fluctuations in the market value of investments; the
desirability of minimizing volatility in the effective rate of interest from
year to year; and the provision of reserves for anticipated losses upon sales,
redemptions, or other disposition of investments and for variations in interest
experience; except that for the purpose of determining the accumulated normal contributions used in calculating retirement annuities under Rule 2 of Section 15-136, the effective rate of interest shall be determined by the State Comptroller rather than the board. For a fiscal year concluding no later than June 30, 2014, the State Comptroller shall determine the effective rate of interest to be used for this purpose using the factors listed above, and shall certify to the board and the Commission on Government Forecasting and Accountability the rate to be used for this purpose for fiscal year 2006 as soon as possible after the effective date of this amendatory Act of the 94th General Assembly, and for each fiscal year thereafter no later than the January 31 immediately preceding the start of that fiscal year. For a fiscal year that begins on or after July 1, 2014, the effective rate of interest for a given fiscal year shall be equal to the interest rate of 30-year United States Treasury bonds as of the beginning of that given fiscal year, plus 75 basis points. This effective rate of interest shall not be used in determining the prescribed rate of interest as defined in paragraph (1) of this Section. (3) The change made to this Section by Public Acts 90-65 and 90-511 is a clarification of existing law.
(Source: P.A. 98-599, eff. 6-1-14 .) (Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 15-125. "Prescribed Rate of Interest; Effective Rate of Interest".
(1) "Prescribed rate of interest": The rate of interest to be used in
actuarial valuations and in development of actuarial tables as determined
by the board on the basis of the probable average effective rate of
interest on a long term basis.
(2) "Effective rate of interest": The interest rate for all or any part of
a fiscal year that is determined by the board based
on factors including the system's past and expected investment experience;
historical and expected fluctuations in the market value of investments; the
desirability of minimizing volatility in the effective rate of interest from
year to year; and the provision of reserves for anticipated losses upon sales,
redemptions, or other disposition of investments and for variations in interest
experience; except that for the purpose of determining the accumulated normal contributions used in calculating retirement annuities under Rule 2 of Section 15-136, the effective rate of interest shall be determined by the State Comptroller rather than the board. The State Comptroller shall determine the effective rate of interest to be used for this purpose using the factors listed above, and shall certify to the board and the Commission on Government Forecasting and Accountability the rate to be used for this purpose for fiscal year 2006 as soon as possible after the effective date of this amendatory Act of the 94th General Assembly, and for each fiscal year thereafter no later than the January 31 immediately preceding the start of that fiscal year. (3) The change made to this Section by Public Acts 90-65 and 90-511 is a clarification of existing law.
(Source: P.A. 94-4, eff. 6-1-05; 94-982, eff. 6-30-06.)
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40 ILCS 5/15-126
(40 ILCS 5/15-126) (from Ch. 108 1/2, par. 15-126)
Sec. 15-126.
Fiscal year.
"Fiscal year": Until July 1, 1987, the period
beginning on September 1 in any year, and ending on August 31 of the
succeeding year, except that the 1987 fiscal year shall end on June 30.
Beginning July 1, 1987, "fiscal year" means the period beginning on July 1
in any year, and ending on June 30 of the succeeding year.
(Source: P.A. 84-1472.)
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40 ILCS 5/15-126.1
(40 ILCS 5/15-126.1) (from Ch. 108 1/2, par. 15-126.1)
Sec. 15-126.1. Academic year. "Academic year": The 12-month period
beginning on the first day of the fall term as determined
by each employer, or if the employer does not have an academic program
divided into terms, then beginning September 1. For the purposes of Section 15-139.5 and subsection (b) of Section 15-139, however, "academic year" means the 12-month period beginning September 1.
(Source: P.A. 98-596, eff. 11-19-13.)
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40 ILCS 5/15-126.2 (40 ILCS 5/15-126.2) Sec. 15-126.2. Plan year. "Plan year": The 12-month period beginning on July 1 in any year, and ending on June 30 of the succeeding year.
(Source: P.A. 99-450, eff. 8-24-15.) |
40 ILCS 5/15-127
(40 ILCS 5/15-127) (from Ch. 108 1/2, par. 15-127)
Sec. 15-127.
Surviving spouse.
"Surviving spouse": (a) The surviving wife or husband
of a participant, but only if she or he (1) is the mother or father
of the participant's son or daughter, (2) legally adopted the son
or daughter while married to the participant and while the son or daughter
was under age 18, (3) was married
to the participant at the time both of them legally adopted
a child under age 18, or (4) was married to the participant
for not less than one year immediately prior to
the day the participant died; and (b) The surviving
wife or husband of an annuitant, if their marriage occurred at least
one year prior to the date the annuitant died.
The change in this Section made by Public Act 82-478 shall be applicable
to annuitants whose employment status terminated before September 15, 1981
as well as those who terminate employment after that date but not to annuitants
who pass away before that date.
(Source: P.A. 83-1440.)
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40 ILCS 5/15-129
(40 ILCS 5/15-129) (from Ch. 108 1/2, par. 15-129)
Sec. 15-129. Child.
"Child": The child of a participant or an annuitant, including a child born out of wedlock, a stepchild who has been such for not less than 1 year
immediately preceding the death of the participant or annuitant, and an
adopted child.
(Source: P.A. 94-229, eff. 1-1-06; 95-279, eff. 1-1-08.)
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40 ILCS 5/15-130
(40 ILCS 5/15-130) (from Ch. 108 1/2, par. 15-130)
Sec. 15-130.
Parent.
"Parent": The mother or father of a participant or annuitant, a
stepparent of a participant or an annuitant by a marriage contracted before
the participant or annuitant attained age 16, or an adopting parent by whom
the participant or annuitant was adopted before he or she reached age 16.
(Source: P.A. 83-1440.)
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40 ILCS 5/15-131
(40 ILCS 5/15-131) (from Ch. 108 1/2, par. 15-131)
Sec. 15-131.
Survivors insurance beneficiary.
"Survivors insurance
beneficiary": The spouse, dependent unmarried child under age 18 (under age
22 if a full-time student), unmarried child over age 18 who is dependent by
reason of a physical or mental disability which began prior to attainment of
that age, or dependent parent, who could qualify for survivors insurance
payments under this Article.
(Source: P.A. 90-448, eff. 8-16-97.)
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40 ILCS 5/15-132
(40 ILCS 5/15-132) (from Ch. 108 1/2, par. 15-132)
Sec. 15-132.
Accumulated survivors insurance contributions.
"Accumulated survivors insurance contributions": The sum of all
survivors insurance contributions received from a participating
employee, together with interest at the prescribed rate.
(Source: P.A. 81-1165.)
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40 ILCS 5/15-132.1
(40 ILCS 5/15-132.1) (from Ch. 108 1/2, par. 15-132.1)
Sec. 15-132.1.
Police officer.
"Police officer": a participant who is
a peace officer empowered to make arrests to protect the property,
interests, students and personnel of an employer.
(Source: P.A. 86-273; 86-1488.)
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40 ILCS 5/15-132.2
(40 ILCS 5/15-132.2)
Sec. 15-132.2.
Retire and retirement.
A participant "retires", and his or
her "retirement" begins, when his or her annuity payment period begins.
(Source: P.A. 91-887, eff. 7-6-00.)
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40 ILCS 5/15-133
(40 ILCS 5/15-133) (from Ch. 108 1/2, par. 15-133)
Sec. 15-133.
Employer participation.
Each employer shall participate in and be subject to the provisions of
this Article.
(Source: Laws 1963, p. 161.)
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40 ILCS 5/15-134
(40 ILCS 5/15-134) (from Ch. 108 1/2, par. 15-134)
Sec. 15-134. Participant.
(a) Each person shall, as a condition of employment, become a participant
and be subject to this Article on the date that he or she becomes an
employee, makes an election to participate in, or otherwise becomes a
participant in one of the retirement programs offered under this Article,
whichever date is later.
An employee who becomes a participant shall continue to be a participant
until he or she becomes an annuitant, dies or accepts a refund of
contributions.
(b) A person employed concurrently by 2 or more employers is
eligible to participate in the system on compensation received from all
employers.
(Source: P.A. 98-92, eff. 7-16-13.)
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40 ILCS 5/15-134.1
(40 ILCS 5/15-134.1) (from Ch. 108 1/2, par. 15-134.1)
Sec. 15-134.1. Service calculation and adjustment.
(a) For the purposes of computing service for academic years for any participant, the following schedule shall govern: one month of service means
a calendar month during which a participant (i) qualifies as an employee
under Section 15-107 for at least 15 or more days, and (ii) receives any
earnings as an employee; 8 or more
months of service during an academic year shall constitute a year of service;
6 or more but less than 8 months of service during an academic year
shall constitute 3/4 of a year of service; 3 or more but less than 6 months
of service during an academic year shall constitute 1/2 of a
year of service; and one or more but less than 3 months of service during
an academic year shall constitute 1/4 of a year of service. No more than
one year of service may be granted per academic year, regardless of the
number of hours or percentage of time worked. This subsection (a) does not apply to service periods to which subsection (a-5) applies. (a-5) For the purposes of computing service for academic years for any participant, the following schedule shall govern: one month of service means a calendar month during which a participant (i) qualifies as an employee under Section 15-107 and contributes to the System, and (ii) receives any earnings as an employee; 8 or more months of service during an academic year shall constitute a year of service; 6 or more but less than 8 months of service during an academic year shall constitute 3/4 of a year of service; 3 or more but less than 6 months of service during an academic year shall constitute 1/2 of a year of service; and one or more but less than 3 months of service during an academic year shall constitute 1/4 of a year of service. No more than one year of service may be granted per academic year, regardless of the number of hours or percentage of time worked. This subsection (a-5) applies to all service periods of a member who is a participant on or after September 1, 2024; except that such changes shall not apply to service periods that were subject to: (1) a purchase under subsection (i) of Section 15-107, subsection (c) of Section 15-113.1, or Section 15-113.2, 15-113.3, 15-113.5, 15-113.6, 15-113.7, or 15-113.11; (2) a repayment of a refund under subsection (b) of Section 15-154 or a distribution under subsection (j) of Section 15-158.2; or (3) a transfer under Section 15-113.10, 15-134.2, or 15-134.4 if payment for such purchase, repayment, or transfer commenced prior to September 1, 2024.
(b) In calculating a retirement annuity, if a participant has been employed
at 1/2 time or less for 3 or more years after September 1, 1959, service
shall be granted for such employment in excess of 3 years, in the proportion
that the percentage of time employed for each such year of employment
bears to the average annual percentage of time employed during
the period on which the final rate of earnings is based. This adjustment
shall not be made, however, in determining the eligibility for a retirement
annuity, disability benefits, additional death benefits, or survivors'
insurance. The percentage of time employed shall be as reported by the
employer. This subsection (b) shall not apply to a member who is a participant on or after September 1, 2024.
(Source: P.A. 103-548, eff. 8-11-23.)
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40 ILCS 5/15-134.2
(40 ILCS 5/15-134.2) (from Ch. 108 1/2, par. 15-134.2)
Sec. 15-134.2.
Transfer of creditable service to the General Assembly
Retirement System. (a) An active member of the General Assembly Retirement
System may apply to transfer his or her credits and creditable service accumulated
under this system to the General Assembly Retirement System. The credits
and creditable service shall be transferred forthwith. Payment by this
system to the General Assembly Retirement System shall be made at the same
time and shall consist of: (1) the amounts credited to the applicant, through
employee contributions, including interest, as of the date of transfer;
and (2) employer contributions equal in amount to the accumulated employee
contributions as determined in subparagraph (1) above. Participation in
this system shall terminate on the date of transfer.
(b) An active member of the General Assembly may reinstate service credits
terminated upon receipt of a refund by payment to the system of the amount
of the refund together with compound interest at the rate required for repayment
of a refund under Section 15-154 from the date the refund was received to
the date of payment.
(Source: P.A. 83-1440.)
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40 ILCS 5/15-134.3
(40 ILCS 5/15-134.3) (from Ch. 108 1/2, par. 15-134.3)
Sec. 15-134.3.
(a) Persons otherwise required or eligible to participate
in this System who elect to continue participation in the General Assembly
System under Section 2-117.1 may not participate in this System 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 System,
upon payment to this System of the amount by which (1) the employer and
employee contributions that would have been required if he had participated
in this System during the period for which credit under Section 2-117.1
is being transferred, plus interest thereon at the effective rate from the
date of such participation to the date of payment, exceeds (2) the amounts
actually transferred under that Section to this System.
(Source: P.A. 86-272.)
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40 ILCS 5/15-134.4
(40 ILCS 5/15-134.4) (from Ch. 108 1/2, par. 15-134.4)
Sec. 15-134.4. Transfer of creditable service to an Article 3 pension fund, the
Article 5 Pension Fund, or the Article 14 System.
(a) An active member of the Pension Fund established under Article 5 of this
Code may apply, not later than January 1, 1990, to transfer his or her
credits and creditable service
accumulated under this System for service with the City Colleges of Chicago
teaching in the Criminal Justice Program, to the Article 5 Fund. Such
credits and creditable service shall be transferred forthwith. Payment by this
System to the Article 5 Fund shall be made at the same time and shall
consist of: (1) the amounts credited to the applicant for such | | service through employee contributions, including interest, as of the date of transfer; and
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| (2) employer contributions equal in amount to the
| | accumulated employee contributions as determined in item (1).
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Participation in this
System with respect to such credits shall terminate on the date of transfer.
(b) Any active member of the State Employees' Retirement System who is
a State policeman, an investigator for the Secretary of State, or a conservation police officer, and who is not a participating employee in this System, may apply for transfer of
some or all of his or her creditable service accumulated
in this System for service as a police officer to the State Employees'
Retirement System in accordance with Section 14-110. The creditable service shall be transferred only upon payment
by this System to the State Employees' Retirement System of an amount equal to:
(1) the amounts accumulated to the credit of the
| | applicant for the service to be transferred, including interest, as of the date of transfer, and any interest paid by the applicant to reinstate such service; and
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(2) employer contributions equal in amount to the
| | accumulated employee contributions as determined in item (1).
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Participation in this System as to any credits transferred under this
Section shall terminate on the date of transfer.
(c) Any person applying to transfer service under subsection (b) may reinstate credits and
creditable service terminated upon receipt of a refund by paying
to the System the amount of the refund plus interest thereon at the
rate of 6% per year from the date of the refund to the date of payment.
(d) No later than June 30, 2023, any active member of a pension fund established under Article 3 of this Code who is not a participating employee in this System may apply for transfer of some or all of his or her creditable service accumulated in this System for service as a police officer to that Article 3 pension fund in accordance with Section 3-110.13. The creditable service shall be transferred only upon payment by this System to that Article 3 pension fund of an amount equal to:
(1) the amounts accumulated to the credit of the
| | applicant for the service to be transferred, including interest, as of the date of transfer, and any interest paid by the applicant to reinstate such service; and
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| (2) employer contributions equal in amount to the
| | accumulated employee contributions as determined in item (1).
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| Participation in this System as to any credits transferred under this Section shall terminate on the date of transfer.
(e) An application to transfer credits and creditable service under this Section shall be irrevocable.
(Source: P.A. 102-1061, eff. 1-1-23 .)
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40 ILCS 5/15-134.5
(40 ILCS 5/15-134.5)
Sec. 15-134.5.
Retirement program elections.
(a) All participating employees are participants under the traditional
benefit package prior to January 1, 1998.
Effective as of the date that an employer elects, as described in Section
15-158.2, to offer to its employees the portable benefit package and the
self-managed plan as alternatives to the traditional benefit package, each of
that employer's eligible employees (as defined in subsection (b)) shall be
given the choice to elect which retirement program he or she wishes to
participate in with respect to all periods of covered employment occurring on
and after the effective date of the employee's election. The retirement
program election made by an eligible employee must be made in writing, in the
manner prescribed by the System, and within the time period described in
subsection (d) or (d-1).
The employee election authorized by this Section is a one-time, irrevocable
election. If an employee terminates employment after making the election
provided under this subsection (a), then upon his or her subsequent
re-employment with an employer the original election shall automatically apply
to him or her, provided that the employer is then a participating employer as
described in Section 15-158.2.
An eligible employee who fails to make this election shall, by default,
participate in the traditional benefit package.
(b) "Eligible employee" means an employee (as defined in Section
15-107) who is either a currently eligible employee or a newly eligible
employee. For purposes of this Section, a "currently eligible employee"
is an employee who is employed by an employer on the effective date on which
the employer offers to its employees the portable benefit package and the
self-managed plan as alternatives to the traditional benefit package. A "newly
eligible employee" is an employee who first becomes employed by an employer
after the effective date on which the employer offers its employees the
portable benefit package and the self-managed plan as alternatives to the
traditional benefit package.
A newly eligible employee participates in the traditional benefit package
until he or she makes an election to participate in the portable benefit
package or the self-managed plan. If an employee does not elect to participate
in the portable benefit package or the self-managed plan, he or she shall
continue to participate in the
traditional benefit package by default.
(c) An eligible employee who at the time he or she is first eligible to
make the election described in subsection (a) does not have sufficient age and
service to qualify for a retirement annuity under Section 15-135 may elect to
participate in the traditional benefit package, the portable benefit package,
or the self-managed plan. An eligible employee who has sufficient age and
service to qualify for a retirement annuity under Section 15-135 at the time he
or she is first eligible to make the election described in subsection (a) may
elect to participate in the traditional benefit package or the portable benefit
package, but may not elect to participate in the self-managed plan.
(d) A currently eligible employee must make this election within one year
after the effective date of the employer's adoption of the self-managed plan.
A newly eligible employee must make this election within
6 months after the date on which the System receives the report of status
certification from the employer.
If an employee elects to participate in the self-managed plan, no employer
contributions shall be remitted to the self-managed plan when the employee's
account balance transfer is made. Employer contributions to the self-managed
plan shall commence as of the first pay period that begins after the System
receives the employee's election.
(d-1) A newly eligible employee who, prior to the effective date of this
amendatory Act of the 91st General Assembly, fails to make the election within
the period provided under subsection (d) and participates by default in the
traditional benefit package may make a late election to participate in the
portable benefit package or the self-managed plan instead of the traditional
benefit package at any time within 6 months after the effective date of this
amendatory Act of the 91st General Assembly.
(e) If a currently eligible employee elects the portable benefit
package, that
election shall not become effective until the one-year anniversary of the date
on which the election is filed with the System, provided the employee remains
continuously employed by the employer throughout the one-year waiting period,
and any benefits payable to or on account of the employee before such one-year
waiting period has ended shall not be determined under the provisions
applicable to the portable benefit package but shall instead be determined in
accordance with the traditional benefit package. If a currently
eligible employee who
has elected the portable benefit package terminates employment covered by the
System before the one-year waiting period has ended, then no
benefits shall be determined under the portable benefit package provisions
while he or she is inactive in the System and upon re-employment with an
employer covered by the System he or she shall begin a new one-year waiting
period before the provisions of the portable benefit
package become effective.
(f) An eligible employee shall be provided with written information prepared
or prescribed by the System which describes the employee's retirement program
choices. The eligible employee shall be offered an opportunity to
receive counseling from the System prior to making his or her election. This
counseling may consist of videotaped materials, group presentations, individual
consultation with an employee or authorized representative of the System in
person or by telephone or other electronic means, or any combination of these
methods.
(Source: P.A. 90-766, eff. 8-14-98; 91-887, eff. 7-6-00.)
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40 ILCS 5/15-135
(40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
Sec. 15-135. Retirement annuities; conditions.
(a) This subsection (a) applies only to a Tier 1 member. A participant who retires in one of the following specified years with
the specified amount of service is entitled to a retirement annuity at any age
under the retirement program applicable to the participant:
35 years if retirement is in 1997 or before;
34 years if retirement is in 1998;
33 years if retirement is in 1999;
32 years if retirement is in 2000;
31 years if retirement is in 2001;
30 years if retirement is in 2002 or later.
A participant with 8 or more years of service after September 1, 1941, is
entitled to a retirement annuity on or after attainment of age 55.
A participant with at least 5 but less than 8 years
of service after September 1, 1941, is entitled to a retirement annuity on
or after attainment of age 62.
A participant who has at least 25 years of service in this system as a
police officer or firefighter is entitled to a retirement
annuity on or after the attainment of age 50, if Rule 4 of Section
15-136 is applicable to the participant.
(a-5) A Tier 2 member is entitled to a retirement annuity upon written application if he or she has attained age 67 and has at least 10 years of service credit and is otherwise eligible under the requirements of this Article. A Tier 2 member who has attained age 62 and has at least 10 years of service credit and is otherwise eligible under the requirements of this Article may elect to receive the lower retirement annuity provided in subsection (b-5) of Section 15-136 of this Article. (a-10) A Tier 2 member who has at least 20 years of service in this system as a police officer or firefighter is entitled to a retirement annuity upon written application on or after the attainment of age 60 if Rule 4 of Section 15-136 is applicable to the participant. The changes made to this subsection by this amendatory Act of the 101st General Assembly apply retroactively to January 1, 2011. (b) The annuity payment period shall begin on the date specified by the
participant or the recipient of a disability retirement annuity submitting a written application. For a participant, the date on which the annuity payment period begins shall not be prior
to termination of employment or more than one year before the application is
received by the board; however, if the participant is not an employee of an
employer participating in this System or in a participating system as defined
in Article 20 of this Code on April 1 of the calendar year next following
the calendar year in which the participant attains the age specified under Section 401(a)(9) of the Internal Revenue Code of 1986, as amended, the annuity
payment period shall begin on that date regardless of whether an application
has been filed. For a recipient of a disability retirement annuity, the date on which the annuity payment period begins shall not be prior to the discontinuation of the disability retirement annuity under Section 15-153.2.
(c) An annuity is not payable if the amount provided under Section
15-136 is less than $10 per month.
(Source: P.A. 101-610, eff. 1-1-20; 102-210, eff. 7-30-21.)
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40 ILCS 5/15-135.1
(40 ILCS 5/15-135.1)
Sec. 15-135.1.
Election to avoid application of P.A.
90-65.
(a) A participant who was an employee on July 7, 1997 and retires on or
after the effective date of this amendatory Act of the 91st General Assembly
may elect in writing at the time of retirement to have
the retirement annuity calculated in accordance with the provisions of Sections
15-135 and 15-136 as they existed immediately prior to amendment by Public Act
90-65. This election, once made, is irrevocable.
(b) The fact that a person has elected to participate in the optional
retirement program under Section 15-158.2 or has elected the portability
option under subsection (a-1) of Section 15-154 does not prevent the person
from making an election under subsection (a) of this Section; the fact that
such a person makes an election under subsection (a) does not allow the person
to change the irrevocable election that he or she made under Section 15-158.2
or subsection (a-1) of Section 15-154.
(c) The System shall promptly notify the Department of Central Management
Services of each election made under this Section.
(Source: P.A. 91-395, eff. 7-30-99.)
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40 ILCS 5/15-136
(40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
Sec. 15-136. Retirement annuities - Amount. The provisions of this
Section 15-136 apply only to those participants who are participating in the
traditional benefit package or the portable benefit package and do not
apply to participants who are participating in the self-managed plan.
(a) The amount of a participant's retirement annuity, expressed in the form
of a single-life annuity, shall be determined by whichever of the following
rules is applicable and provides the largest annuity:
Rule 1: The retirement annuity shall be 1.67% of final rate of earnings for
each of the first 10 years of service, 1.90% for each of the next 10 years of
service, 2.10% for each year of service in excess of 20 but not exceeding 30,
and 2.30% for each year in excess of 30; or for persons who retire on or
after January 1, 1998, 2.2% of the final rate of earnings for each year of
service.
Rule 2: The retirement annuity shall be the sum of the following,
determined from amounts credited to the participant in accordance with the
actuarial tables and the effective rate of interest in effect at the
time the retirement annuity begins:
(i) the normal annuity which can be provided on an | | actuarially equivalent basis, by the accumulated normal contributions as of the date the annuity begins;
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(ii) an annuity from employer contributions of an
| | amount equal to that which can be provided on an actuarially equivalent basis from the accumulated normal contributions made by the participant under Section 15-113.6 and Section 15-113.7 plus 1.4 times all other accumulated normal contributions made by the participant; and
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(iii) the annuity that can be provided on an
| | actuarially equivalent basis from the entire contribution made by the participant under Section 15-113.3.
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With respect to a police officer or firefighter who retires on or after
August 14, 1998, the accumulated normal contributions taken into account under
clauses (i) and (ii) of this Rule 2 shall include the additional normal
contributions made by the police officer or firefighter under Section
15-157(a).
The amount of a retirement annuity calculated under this Rule 2 shall
be computed solely on the basis of the participant's accumulated normal
contributions, as specified in this Rule and defined in Section 15-116.
Neither an employee or employer contribution for early retirement under
Section 15-136.2 nor any other employer contribution shall be used in the
calculation of the amount of a retirement annuity under this Rule 2.
This amendatory Act of the 91st General Assembly is a clarification of
existing law and applies to every participant and annuitant without regard to
whether status as an employee terminates before the effective date of this
amendatory Act.
This Rule 2 does not apply to a person who first becomes an employee under this Article on or after July 1, 2005.
Rule 3: The retirement annuity of a participant who is employed
at least one-half time during the period on which his or her final rate of
earnings is based, shall be equal to the participant's years of service
not to exceed 30, multiplied by (1) $96 if the participant's final rate
of earnings is less than $3,500, (2) $108 if the final rate of earnings is
at least $3,500 but less than $4,500, (3) $120 if the final rate of earnings
is at least $4,500 but less than $5,500, (4) $132 if the final rate
of earnings is at least $5,500 but less than $6,500, (5)
$144 if the final rate of earnings is at least $6,500 but less than
$7,500, (6) $156 if the final rate of earnings is at least $7,500 but less
than $8,500, (7) $168 if the final rate of earnings is at least $8,500 but
less than $9,500, and (8) $180 if the final rate of earnings is $9,500 or
more, except that the annuity for those persons having made an election under
Section 15-154(a-1) shall be calculated and payable under the portable
retirement benefit program pursuant to the provisions of Section 15-136.4.
Rule 4: A participant who is at least age 50 and has 25 or more years of
service as a police officer or firefighter, and a participant who is age 55 or
over and has at least 20 but less than 25 years of service as a police officer
or firefighter, shall be entitled to a retirement annuity of 2 1/4% of the
final rate of earnings for each of the first 10 years of service as a police
officer or firefighter, 2 1/2% for each of the next 10 years of service as a
police officer or firefighter, and 2 3/4% for each year of service as a police
officer or firefighter in excess of 20. The retirement annuity for all other
service shall be computed under Rule 1. A Tier 2 member is eligible for a retirement annuity calculated under Rule 4 only if that Tier 2 member meets the service requirements for that benefit calculation as prescribed under this Rule 4 in addition to the applicable age requirement under subsection (a-10) of Section 15-135.
For purposes of this Rule 4, a participant's service as a firefighter
shall also include the following:
(i) service that is performed while the person is an
| | employee under subsection (h) of Section 15-107; and
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(ii) in the case of an individual who was a
| | participating employee employed in the fire department of the University of Illinois's Champaign-Urbana campus immediately prior to the elimination of that fire department and who immediately after the elimination of that fire department transferred to another job with the University of Illinois, service performed as an employee of the University of Illinois in a position other than police officer or firefighter, from the date of that transfer until the employee's next termination of service with the University of Illinois.
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(b) For a Tier 1 member, the retirement annuity provided under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for each month the participant is under age 60 at the
time of retirement. However, this reduction shall not apply in the following
cases:
(1) For a disabled participant whose disability
| | benefits have been discontinued because he or she has exhausted eligibility for disability benefits under clause (6) of Section 15-152;
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(2) For a participant who has at least the number of
| | years of service required to retire at any age under subsection (a) of Section 15-135; or
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(3) For that portion of a retirement annuity which
| | has been provided on account of service of the participant during periods when he or she performed the duties of a police officer or firefighter, if these duties were performed for at least 5 years immediately preceding the date the retirement annuity is to begin.
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(b-5) The retirement annuity of a Tier 2 member who is retiring under Rule 1 or 3 after attaining age 62 with at least 10 years of service credit shall be reduced by 1/2 of 1% for each full month that the member's age is under age 67.
(c) The maximum retirement annuity provided under Rules 1, 2, 4,
and 5
shall be the lesser of (1) the annual limit of benefits as specified in
Section 415 of the Internal Revenue Code of 1986, as such Section may be
amended from time to time and as such benefit limits shall be adjusted by
the Commissioner of Internal Revenue, and (2) 80% of final rate of
earnings.
(d) A Tier 1 member whose status as an employee terminates after August 14,
1969 shall receive automatic increases in his or her retirement annuity as
follows:
Effective January 1 immediately following the date the retirement annuity
begins, the annuitant shall receive an increase in his or her monthly
retirement annuity of 0.125% of the monthly retirement annuity provided under
Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
Section, multiplied by
the number of full months which elapsed from the date the retirement annuity
payments began to January 1, 1972, plus 0.1667% of such annuity, multiplied by
the number of full months which elapsed from January 1, 1972, or the date the
retirement annuity payments began, whichever is later, to January 1, 1978, plus
0.25% of such annuity multiplied by the number of full months which elapsed
from January 1, 1978, or the date the retirement annuity payments began,
whichever is later, to the effective date of the increase.
The annuitant shall receive an increase in his or her monthly retirement
annuity on each January 1 thereafter during the annuitant's life of 3% of
the monthly annuity provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this Section. The change made under this subsection by P.A. 81-970 is
effective January 1, 1980 and applies to each annuitant whose status as
an employee terminates before or after that date.
Beginning January 1, 1990, all automatic annual increases payable under
this Section shall be calculated as a percentage of the total annuity
payable at the time of the increase, including all increases previously
granted under this Article.
The change made in this subsection by P.A. 85-1008 is effective January
26, 1988, and is applicable without regard to whether status as an employee
terminated before that date.
(d-5) A retirement annuity of a Tier 2 member shall receive 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 3% or one half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted retirement annuity. If the annual unadjusted percentage change in the consumer price index-u for the 12 months ending with the September preceding each November 1 is zero or there is a decrease, then the annuity shall not be increased.
(e) If, on January 1, 1987, or the date the retirement annuity payment
period begins, whichever is later, the sum of the retirement annuity
provided under Rule 1 or Rule 2 of this Section
and the automatic annual increases provided under the preceding subsection
or Section 15-136.1, amounts to less than the retirement
annuity which would be provided by Rule 3, the retirement
annuity shall be increased as of January 1, 1987, or the date the
retirement annuity payment period begins, whichever is later, to the amount
which would be provided by Rule 3 of this Section. Such increased
amount shall be considered as the retirement annuity in determining
benefits provided under other Sections of this Article. This paragraph
applies without regard to whether status as an employee terminated before the
effective date of this amendatory Act of 1987, provided that the annuitant was
employed at least one-half time during the period on which the final rate of
earnings was based.
(f) A participant is entitled to such additional annuity as may be provided
on an actuarially equivalent basis, by any accumulated
additional contributions to his or her credit. However,
the additional contributions made by the participant toward the automatic
increases in annuity provided under this Section shall not be taken into
account in determining the amount of such additional annuity.
(g) If, (1) by law, a function of a governmental unit, as defined by Section
20-107 of this Code, is transferred in whole or in part to an employer, and (2)
a participant transfers employment from such governmental unit to such employer
within 6 months after the transfer of the function, and (3) the sum of (A) the
annuity payable to the participant under Rule 1, 2, or 3 of this Section (B)
all proportional annuities payable to the participant by all other retirement
systems covered by Article 20, and (C) the initial primary insurance amount to
which the participant is entitled under the Social Security Act, is less than
the retirement annuity which would have been payable if all of the
participant's pension credits validated under Section 20-109 had been validated
under this system, a supplemental annuity equal to the difference in such
amounts shall be payable to the participant.
(h) On January 1, 1981, an annuitant who was receiving
a retirement annuity on or before January 1, 1971 shall have his or her
retirement annuity then being paid increased $1 per month for
each year of creditable service. On January 1, 1982, an annuitant whose
retirement annuity began on or before January 1, 1977, shall have his or her
retirement annuity then being paid increased $1 per month for each year of
creditable service.
(i) On January 1, 1987, any annuitant whose retirement annuity began on or
before January 1, 1977, shall have the monthly retirement annuity increased by
an amount equal to 8¢ per year of creditable service times the number of years
that have elapsed since the annuity began.
(j) The changes made to this Section by this amendatory Act of the 101st General Assembly apply retroactively to January 1, 2011.
(Source: P.A. 101-610, eff. 1-1-20.)
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40 ILCS 5/15-136.1
(40 ILCS 5/15-136.1) (from Ch. 108 1/2, par. 15-136.1)
Sec. 15-136.1.
Retirement annuities - Supplemental annuity.
(a) An
annuitant whose status as an employee terminated before August 15, 1969
with at least 15 years of service is entitled to a supplemental annuity as follows:
Effective January 1, nearest the first anniversary of retirement, or January
1, nearest the annuitant's 65th birthday, whichever is later, the annuitant
shall receive a supplemental annuity of 0.125% of the monthly retirement
annuity which was provided under Rule 1, Rule 2, or Rule 3 of Section 15-136,
multiplied by the number of full months which elapsed from the date of
retirement through December 31, 1971, 0.1667% of such annuity multiplied by
the number of full months which elapsed from January 1, 1972 through
December 31, 1977, and 0.25% of such annuity multiplied by the number of
full months which elapsed from January 1, 1978 to the effective date of the
supplemental annuity.
On each January 1 thereafter during the annuitant's lifetime, he or she
shall receive an additional supplemental annuity of 3% of the monthly annuity
provided under Rule 1, Rule 2 or Rule 3 of Section 15-136. The change made
in this Section by P.A. 81-970 is effective January 1, 1980 and applies
to each annuitant whose status as an employee terminated before August
15, 1969.
The supplemental annuity is payable only if the annuitant files with
the board, an agreement to pay to the system, an amount equal to 1%
of his or her monthly final rate of earnings multiplied by the number of
years of service credited on the date of retirement. The payment shall be
made in a lump sum, and if it is received by the board more than 30 days
after the effective date of the supplemental annuity, the supplemental
annuity shall be deferred to the first day of the month following receipt of the payment.
(b) Each annuitant, whose status as an employee terminated before
August 15, 1969 with less than 15 years of service, is entitled to a monthly
supplemental annuity effective January 1, 1984 or January 1 nearest the
first anniversary of retirement or January 1 nearest his or her
65th birthday, whichever is later, of 3% of the monthly annuity which was
provided by Rule 1, Rule 2, or Rule 3 of Section 15-136. On each January
1 thereafter during the lifetime of the annuitant, he or she shall be
entitled to an additional monthly supplemental annuity of 3% of the monthly
annuity which was provided by Rule 1, Rule 2, or Rule 3 of Section 15-136.
Beginning January 1, 1990, all automatic annual increases payable under
this Section shall be calculated as a percentage of the total annuity
payable at the time of the increase, including all increases previously
granted under this Article.
(Source: P.A. 86-273.)
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40 ILCS 5/15-136.2
(40 ILCS 5/15-136.2) (from Ch. 108 1/2, par. 15-136.2)
Sec. 15-136.2.
Early retirement without discount.
A participant whose
retirement annuity begins after June 1, 1981 and on or before September 1,
2002 and within six months of the last day of employment for which
retirement contributions were required, may elect at the time of
application to make a one time employee contribution to the System and
thereby avoid the early retirement reduction in retirement annuity
specified under subsection (b) of Section 15-136. The exercise of the
election shall obligate the last employer to also make a one time
non-refundable contribution to the System.
The one time employee and employer contributions shall be a percentage
of the retiring participant's highest full time annual salary rate during
the academic years which were considered in determining his or her final
rate of earnings, or if not full time then the full time equivalent. The
employee contribution rate shall be 7% multiplied by the lesser of the
following 2 sums: (1) the number of years that the participant is less than
age 60; or (2) the number of years that the participant's creditable
service is less than 35 years. The employer contribution shall be at the
rate of 20% for each year the participant is less than age 60. The
employer shall pay the employer contribution from the same source of funds
which is used in paying earnings to employees.
Upon receipt of the application and election, the System shall determine
the one time employee and employer contributions. The provisions of this
Section shall not be applicable until all the above outlined contributions
have been received by the System; however, the date such contributions are
received shall not be considered in determining the effective date of
retirement.
Employee and employer contributions under this Section shall be used only
to eliminate the reduction for early retirement under Rules 1 and 3 of Section
15-136 and shall not be used in calculating annuities under Rules 2
or 4
set forth in Section 15-136. This amendatory Act of the 91st General
Assembly is a clarification of existing law and applies to every participant
and annuitant without regard to whether status as an employee terminates before
the effective date of this amendatory Act.
For persons who apply to the Board after the effective date of this
amendatory Act of 1993 and before July 1, 1993, requesting a retirement annuity
to begin no earlier than July 1, 1993 and no later than June 30, 1994, the
employer shall pay both the employee and employer contributions required under
this Section.
The number of employees retiring under this Section in any fiscal year
may be limited at the option of the employer to no less than 15% of those
eligible. The right to elect early retirement without discount shall be
allocated among those applying on the basis of seniority in the service of
the last employer.
(Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97; 91-887, eff. 7-6-00.)
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40 ILCS 5/15-136.3
(40 ILCS 5/15-136.3)
Sec. 15-136.3. Minimum retirement annuity.
(a) Beginning January 1, 1997, any person who is receiving a monthly
retirement
annuity under this Article which, after inclusion of (1) all one-time and
automatic annual increases to which the person is entitled, (2) any
supplemental annuity payable under Section 15-136.1, and (3) any amount
deducted under Section 15-138 or 15-140 to provide a reversionary annuity, is
less than the minimum monthly retirement benefit amount specified in subsection
(b) of this Section, shall be entitled to a monthly supplemental payment equal
to the difference.
(b) For purposes of the calculation in subsection (a), the minimum monthly
retirement benefit amount is the sum of $25 for each year of service credit, up
to a maximum of 30 years of service.
(c) This Section applies to all persons receiving a retirement annuity under
this Article, without regard to whether or not employment terminated prior to
the effective date of this Section.
(Source: P.A. 98-92, eff. 7-16-13.)
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