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90_SB0667ham001
LRB9000609EGfgam20
1 AMENDMENT TO SENATE BILL 667
2 AMENDMENT NO. . Amend Senate Bill 667 by replacing
3 the title with the following:
4 "AN ACT in relation to public employee retirement
5 benefits."; and
6 by replacing everything after the enacting clause with the
7 following:
8 "Section 5. The Property Tax Code is amended by changing
9 Section 18-185 as follows:
10 (35 ILCS 200/18-185)
11 Sec. 18-185. Short title; definitions. This Section and
12 Sections 18-190 through 18-245 may be cited as the Property
13 Tax Extension Limitation Law. As used in Sections 18-190
14 through 18-245:
15 "Consumer Price Index" means the Consumer Price Index for
16 All Urban Consumers for all items published by the United
17 States Department of Labor.
18 "Extension limitation" means (a) the lesser of 5% or the
19 percentage increase in the Consumer Price Index during the
20 12-month calendar year preceding the levy year or (b) the
21 rate of increase approved by voters under Section 18-205.
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1 "Affected county" means a county of 3,000,000 or more
2 inhabitants or a county contiguous to a county of 3,000,000
3 or more inhabitants.
4 "Taxing district" has the same meaning provided in
5 Section 1-150, except as otherwise provided in this Section.
6 For the 1991 through 1994 levy years only, "taxing district"
7 includes only each non-home rule taxing district having the
8 majority of its 1990 equalized assessed value within any
9 county or counties contiguous to a county with 3,000,000 or
10 more inhabitants. Beginning with the 1995 levy year, "taxing
11 district" includes only each non-home rule taxing district
12 subject to this Law before the 1995 levy year and each
13 non-home rule taxing district not subject to this Law before
14 the 1995 levy year having the majority of its 1994 equalized
15 assessed value in an affected county or counties. Beginning
16 with the levy year in which this Law becomes applicable to a
17 taxing district as provided in Section 18-213, "taxing
18 district" also includes those taxing districts made subject
19 to this Law as provided in Section 18-213.
20 "Aggregate extension" for taxing districts to which this
21 Law applied before the 1995 levy year means the annual
22 corporate extension for the taxing district and those special
23 purpose extensions that are made annually for the taxing
24 district, excluding special purpose extensions: (a) made for
25 the taxing district to pay interest or principal on general
26 obligation bonds that were approved by referendum; (b) made
27 for any taxing district to pay interest or principal on
28 general obligation bonds issued before October 1, 1991; (c)
29 made for any taxing district to pay interest or principal on
30 bonds issued to refund or continue to refund those bonds
31 issued before October 1, 1991; (d) made for any taxing
32 district to pay interest or principal on bonds issued to
33 refund or continue to refund bonds issued after October 1,
34 1991 that were approved by referendum; (e) made for any
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1 taxing district to pay interest or principal on revenue bonds
2 issued before October 1, 1991 for payment of which a property
3 tax levy or the full faith and credit of the unit of local
4 government is pledged; however, a tax for the payment of
5 interest or principal on those bonds shall be made only after
6 the governing body of the unit of local government finds that
7 all other sources for payment are insufficient to make those
8 payments; (f) made for payments under a building commission
9 lease when the lease payments are for the retirement of bonds
10 issued by the commission before October 1, 1991, to pay for
11 the building project; (g) made for payments due under
12 installment contracts entered into before October 1, 1991;
13 (h) made for payments of principal and interest on bonds
14 issued under the Metropolitan Water Reclamation District Act
15 to finance construction projects initiated before October 1,
16 1991; (i) made for payments of principal and interest on
17 limited bonds, as defined in Section 3 of the Local
18 Government Debt Reform Act, in an amount not to exceed the
19 debt service extension base less the amount in items (b),
20 (c), (e), and (h) of this definition for non-referendum
21 obligations, except obligations initially issued pursuant to
22 referendum; and (j) made for payments of principal and
23 interest on bonds issued under Section 15 of the Local
24 Government Debt Reform Act; and (k) made by a school district
25 that participates in the Special Education District of Lake
26 County, created by special education joint agreement under
27 Section 10-22.31 of the School Code, for payment of the
28 school district's share of the amounts required to be
29 contributed by the Special Education District of Lake County
30 to the Illinois Municipal Retirement Fund under Article 7 of
31 the Illinois Pension Code; the amount of any extension under
32 this item (k) shall be certified by the school district to
33 the county clerk.
34 "Aggregate extension" for the taxing districts to which
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1 this Law did not apply before the 1995 levy year (except
2 taxing districts subject to this Law in accordance with
3 Section 18-213) means the annual corporate extension for the
4 taxing district and those special purpose extensions that are
5 made annually for the taxing district, excluding special
6 purpose extensions: (a) made for the taxing district to pay
7 interest or principal on general obligation bonds that were
8 approved by referendum; (b) made for any taxing district to
9 pay interest or principal on general obligation bonds issued
10 before March 1, 1995; (c) made for any taxing district to pay
11 interest or principal on bonds issued to refund or continue
12 to refund those bonds issued before March 1, 1995; (d) made
13 for any taxing district to pay interest or principal on bonds
14 issued to refund or continue to refund bonds issued after
15 March 1, 1995 that were approved by referendum; (e) made for
16 any taxing district to pay interest or principal on revenue
17 bonds issued before March 1, 1995 for payment of which a
18 property tax levy or the full faith and credit of the unit of
19 local government is pledged; however, a tax for the payment
20 of interest or principal on those bonds shall be made only
21 after the governing body of the unit of local government
22 finds that all other sources for payment are insufficient to
23 make those payments; (f) made for payments under a building
24 commission lease when the lease payments are for the
25 retirement of bonds issued by the commission before March 1,
26 1995 to pay for the building project; (g) made for payments
27 due under installment contracts entered into before March 1,
28 1995; (h) made for payments of principal and interest on
29 bonds issued under the Metropolitan Water Reclamation
30 District Act to finance construction projects initiated
31 before October 1, 1991; (i) made for payments of principal
32 and interest on limited bonds, as defined in Section 3 of the
33 Local Government Debt Reform Act, in an amount not to exceed
34 the debt service extension base less the amount in items (b),
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1 (c), (e), and (h) of this definition for non-referendum
2 obligations, except obligations initially issued pursuant to
3 referendum; (j) made for payments of principal and interest
4 on bonds issued under Section 15 of the Local Government Debt
5 Reform Act; (k) made for payments of principal and interest
6 on bonds authorized by Public Act 88-503 and issued under
7 Section 20a of the Chicago Park District Act for aquarium or
8 museum projects; and (l) made for payments of principal and
9 interest on bonds authorized by Public Act 87-1191 and issued
10 under Section 42 of the Cook County Forest Preserve District
11 Act for zoological park projects.
12 "Aggregate extension" for all taxing districts to which
13 this Law applies in accordance with Section 18-213, except
14 for those taxing districts subject to paragraph (2) of
15 subsection (e) of Section 18-213, means the annual corporate
16 extension for the taxing district and those special purpose
17 extensions that are made annually for the taxing district,
18 excluding special purpose extensions: (a) made for the taxing
19 district to pay interest or principal on general obligation
20 bonds that were approved by referendum; (b) made for any
21 taxing district to pay interest or principal on general
22 obligation bonds issued before the date on which the
23 referendum making this Law applicable to the taxing district
24 is held; (c) made for any taxing district to pay interest or
25 principal on bonds issued to refund or continue to refund
26 those bonds issued before the date on which the referendum
27 making this Law applicable to the taxing district is held;
28 (d) made for any taxing district to pay interest or principal
29 on bonds issued to refund or continue to refund bonds issued
30 after the date on which the referendum making this Law
31 applicable to the taxing district is held if the bonds were
32 approved by referendum after the date on which the referendum
33 making this Law applicable to the taxing district is held;
34 (e) made for any taxing district to pay interest or principal
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1 on revenue bonds issued before the date on which the
2 referendum making this Law applicable to the taxing district
3 is held for payment of which a property tax levy or the full
4 faith and credit of the unit of local government is pledged;
5 however, a tax for the payment of interest or principal on
6 those bonds shall be made only after the governing body of
7 the unit of local government finds that all other sources for
8 payment are insufficient to make those payments; (f) made for
9 payments under a building commission lease when the lease
10 payments are for the retirement of bonds issued by the
11 commission before the date on which the referendum making
12 this Law applicable to the taxing district is held to pay for
13 the building project; (g) made for payments due under
14 installment contracts entered into before the date on which
15 the referendum making this Law applicable to the taxing
16 district is held; (h) made for payments of principal and
17 interest on limited bonds, as defined in Section 3 of the
18 Local Government Debt Reform Act, in an amount not to exceed
19 the debt service extension base less the amount in items (b),
20 (c), and (e) of this definition for non-referendum
21 obligations, except obligations initially issued pursuant to
22 referendum; (i) made for payments of principal and interest
23 on bonds issued under Section 15 of the Local Government Debt
24 Reform Act; and (j) made for a qualified airport authority to
25 pay interest or principal on general obligation bonds issued
26 for the purpose of paying obligations due under, or financing
27 airport facilities required to be acquired, constructed,
28 installed or equipped pursuant to, contracts entered into
29 before March 1, 1996 (but not including any amendments to
30 such a contract taking effect on or after that date).
31 "Aggregate extension" for all taxing districts to which
32 this Law applies in accordance with paragraph (2) of
33 subsection (e) of Section 18-213 means the annual corporate
34 extension for the taxing district and those special purpose
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1 extensions that are made annually for the taxing district,
2 excluding special purpose extensions: (a) made for the taxing
3 district to pay interest or principal on general obligation
4 bonds that were approved by referendum; (b) made for any
5 taxing district to pay interest or principal on general
6 obligation bonds issued before the effective date of this
7 amendatory Act of 1997; (c) made for any taxing district to
8 pay interest or principal on bonds issued to refund or
9 continue to refund those bonds issued before the effective
10 date of this amendatory Act of 1997; (d) made for any taxing
11 district to pay interest or principal on bonds issued to
12 refund or continue to refund bonds issued after the effective
13 date of this amendatory Act of 1997 if the bonds were
14 approved by referendum after the effective date of this
15 amendatory Act of 1997; (e) made for any taxing district to
16 pay interest or principal on revenue bonds issued before the
17 effective date of this amendatory Act of 1997 for payment of
18 which a property tax levy or the full faith and credit of the
19 unit of local government is pledged; however, a tax for the
20 payment of interest or principal on those bonds shall be made
21 only after the governing body of the unit of local government
22 finds that all other sources for payment are insufficient to
23 make those payments; (f) made for payments under a building
24 commission lease when the lease payments are for the
25 retirement of bonds issued by the commission before the
26 effective date of this amendatory Act of 1997 to pay for the
27 building project; (g) made for payments due under installment
28 contracts entered into before the effective date of this
29 amendatory Act of 1997; (h) made for payments of principal
30 and interest on limited bonds, as defined in Section 3 of the
31 Local Government Debt Reform Act, in an amount not to exceed
32 the debt service extension base less the amount in items (b),
33 (c), and (e) of this definition for non-referendum
34 obligations, except obligations initially issued pursuant to
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1 referendum; (i) made for payments of principal and interest
2 on bonds issued under Section 15 of the Local Government Debt
3 Reform Act; and (j) made for a qualified airport authority to
4 pay interest or principal on general obligation bonds issued
5 for the purpose of paying obligations due under, or financing
6 airport facilities required to be acquired, constructed,
7 installed or equipped pursuant to, contracts entered into
8 before March 1, 1996 (but not including any amendments to
9 such a contract taking effect on or after that date).
10 "Debt service extension base" means an amount equal to
11 that portion of the extension for a taxing district for the
12 1994 levy year, or for those taxing districts subject to this
13 Law in accordance with Section 18-213, except for those
14 subject to paragraph (2) of subsection (e) of Section 18-213,
15 for the levy year in which the referendum making this Law
16 applicable to the taxing district is held, or for those
17 taxing districts subject to this Law in accordance with
18 paragraph (2) of subsection (e) of Section 18-213 for the
19 1996 levy year, constituting an extension for payment of
20 principal and interest on bonds issued by the taxing district
21 without referendum, but not including (i) bonds authorized by
22 Public Act 88-503 and issued under Section 20a of the Chicago
23 Park District Act for aquarium and museum projects; (ii)
24 bonds issued under Section 15 of the Local Government Debt
25 Reform Act; or (iii) refunding obligations issued to refund
26 or to continue to refund obligations initially issued
27 pursuant to referendum. The debt service extension base may
28 be established or increased as provided under Section 18-212.
29 "Special purpose extensions" include, but are not limited
30 to, extensions for levies made on an annual basis for
31 unemployment and workers' compensation, self-insurance,
32 contributions to pension plans, and extensions made pursuant
33 to Section 6-601 of the Illinois Highway Code for a road
34 district's permanent road fund whether levied annually or
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1 not. The extension for a special service area is not
2 included in the aggregate extension.
3 "Aggregate extension base" means the taxing district's
4 last preceding aggregate extension as adjusted under Sections
5 18-215 through 18-230.
6 "Levy year" has the same meaning as "year" under Section
7 1-155.
8 "New property" means (i) the assessed value, after final
9 board of review or board of appeals action, of new
10 improvements or additions to existing improvements on any
11 parcel of real property that increase the assessed value of
12 that real property during the levy year multiplied by the
13 equalization factor issued by the Department under Section
14 17-30 and (ii) the assessed value, after final board of
15 review or board of appeals action, of real property not
16 exempt from real estate taxation, which real property was
17 exempt from real estate taxation for any portion of the
18 immediately preceding levy year, multiplied by the
19 equalization factor issued by the Department under Section
20 17-30.
21 "Qualified airport authority" means an airport authority
22 organized under the Airport Authorities Act and located in a
23 county bordering on the State of Wisconsin and having a
24 population in excess of 200,000 and not greater than 500,000.
25 "Recovered tax increment value" means the amount of the
26 current year's equalized assessed value, in the first year
27 after a municipality terminates the designation of an area as
28 a redevelopment project area previously established under the
29 Tax Increment Allocation Development Act in the Illinois
30 Municipal Code, previously established under the Industrial
31 Jobs Recovery Law in the Illinois Municipal Code, or
32 previously established under the Economic Development Area
33 Tax Increment Allocation Act, of each taxable lot, block,
34 tract, or parcel of real property in the redevelopment
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1 project area over and above the initial equalized assessed
2 value of each property in the redevelopment project area.
3 Except as otherwise provided in this Section, "limiting
4 rate" means a fraction the numerator of which is the last
5 preceding aggregate extension base times an amount equal to
6 one plus the extension limitation defined in this Section and
7 the denominator of which is the current year's equalized
8 assessed value of all real property in the territory under
9 the jurisdiction of the taxing district during the prior levy
10 year. For those taxing districts that reduced their
11 aggregate extension for the last preceding levy year, the
12 highest aggregate extension in any of the last 3 preceding
13 levy years shall be used for the purpose of computing the
14 limiting rate. The denominator shall not include new
15 property. The denominator shall not include the recovered
16 tax increment value.
17 (Source: P.A. 88-455; 89-1, eff. 2-12-95; 89-138, eff.
18 7-14-95; 89-385, eff. 8-18-95; 89-436, eff. 1-1-96; 89-449,
19 eff. 6-1-96; 89-510, eff. 7-11-96; 89-718, eff. 3-7-97.)
20 Section 10. The Illinois Pension Code is amended by
21 changing Sections 7-132, 7-141.1, 7-171, 14-105.1, 15-112,
22 15-113.2, 15-113.3, 15-113.4, 15-113.7, 15-125, 15-136.2,
23 15-143, 15-153.2, 15-157, 15-167.2, 15-185, 15-190, 15-191,
24 16-127, 16-140, and 18-112 and adding Sections 2-117.4,
25 9-134.3, and 15-168.1 as follows:
26 (40 ILCS 5/2-117.4 new)
27 Sec. 2-117.4. Retransfer of creditable service to
28 Article 14 system. If a person transferred creditable
29 service to this System under Section 14-105.1 between January
30 1, 1990 and February 1, 1991, and that transfer resulted in
31 the person having excess service not established in this
32 System, the person may elect to transfer that excess service
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1 back into the Article 14 retirement system. Application to
2 transfer excess service under this Section must be made to
3 the Board in writing within 6 months after the effective date
4 of this Section. The amount of excess service to be
5 retransferred shall be calculated by multiplying the number
6 of years of service transferred from the Article 14 system
7 under Section 14-105.1 by a fraction, the denominator of
8 which is the total employee contribution (including interest)
9 transferred to this system under Section 14-105.1 and the
10 numerator of which is the amount of that transferred employee
11 contribution not used to establish service in this System.
12 At the time of the retransfer, the System shall also
13 transfer to the State Employees' Retirement System an amount,
14 calculated by the Board, equal to (i) the employee
15 contributions (including interest), if any, that were
16 transferred to this System by the applicant under Section
17 14-105.1 and not used to establish service under this
18 Article, plus (ii) regular interest on those unused employee
19 contributions from the date of the transfer under Section
20 14-105.1 to the date of the retransfer under this Section.
21 (40 ILCS 5/7-132) (from Ch. 108 1/2, par. 7-132)
22 Sec. 7-132. Municipalities, instrumentalities and
23 participating instrumentalities included and effective dates.
24 (A) Municipalities and their instrumentalities.
25 (a) The following described municipalities, but not
26 including any with more than 1,000,000 inhabitants, and the
27 instrumentalities thereof, shall be included within and be
28 subject to this Article beginning upon the effective dates
29 specified by the Board:
30 (1) Except as to the municipalities and
31 instrumentalities thereof specifically excluded under
32 this Article, every county shall be subject to this
33 Article, and all cities, villages and incorporated towns
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1 having a population in excess of 5,000 inhabitants as
2 determined by the last preceding decennial or subsequent
3 federal census, shall be subject to this Article
4 following publication of the census by the Bureau of the
5 Census. Within 90 days after publication of the census,
6 the Board shall notify any municipality that has become
7 subject to this Article as a result of that census, and
8 shall provide information to the corporate authorities of
9 the municipality explaining the duties and consequences
10 of participation. The notification shall also include a
11 proposed date upon which participation by the
12 municipality will commence.
13 However, for any city, village or incorporated town
14 that attains a population over 5,000 inhabitants after
15 having provided social security coverage for its
16 employees under the Social Security Enabling Act,
17 participation under this Article shall not be mandatory
18 but may be elected in accordance with subparagraph (3) or
19 (4) of this paragraph (a), whichever is applicable.
20 (2) School districts, other than those specifically
21 excluded under this Article, shall be subject to this
22 Article, without election, with respect to all employees
23 thereof.
24 (3) Towns and all other bodies politic and
25 corporate which are formed by vote of, or are subject to
26 control by, the electors in towns and are located in
27 towns which are not participating municipalities on the
28 effective date of this Act, may become subject to this
29 Article by election pursuant to Section 7-132.1.
30 (4) Any other municipality (together with its
31 instrumentalities), other than those specifically
32 excluded from participation and those described in
33 paragraph (3) above, may elect to be included either by
34 referendum under Section 7-134 or by the adoption of a
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1 resolution or ordinance by its governing body. A copy of
2 such resolution or ordinance duly authenticated and
3 certified by the clerk of the municipality or other
4 appropriate official of its governing body shall
5 constitute the required notice to the board of such
6 action.
7 (b) A municipality that is about to begin participation
8 shall submit to the Board an application to participate, in a
9 form acceptable to the Board, not later than 90 days prior to
10 the proposed effective date of participation. The Board
11 shall act upon the application within 90 days, and if it
12 finds that the application is in conformity with its
13 requirements and the requirements of this Article,
14 participation by the applicant shall commence on a date
15 acceptable to the municipality and specified by the Board,
16 but in no event more than one year from the date of
17 application.
18 (c) A participating municipality which succeeds to the
19 functions of a participating municipality which is dissolved
20 or terminates its existence shall assume and be transferred
21 the net accumulation balance in the municipality reserve and
22 the municipality account receivable balance of the terminated
23 municipality.
24 (d) In the case of a Veterans Assistance Commission
25 whose employees were being treated by the Fund on January 1,
26 1990 as employees of the county served by the Commission, the
27 Fund may continue to treat the employees of the Veterans
28 Assistance Commission as county employees for the purposes of
29 this Article, unless the Commission becomes a participating
30 instrumentality in accordance with subsection (B) of this
31 Section.
32 (B) Participating instrumentalities.
33 (a) The participating instrumentalities designated in
34 paragraph (b) of this subsection shall be included within and
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1 be subject to this Article if:
2 (1) an application to participate, in a form
3 acceptable to the Board and adopted by a two-thirds vote
4 of the governing body, is presented to the Board not
5 later than 90 days prior to the proposed effective date;
6 and
7 (2) the Board finds that the application is in
8 conformity with its requirements, that the applicant has
9 reasonable expectation to continue as a political entity
10 for a period of at least 10 years and has the prospective
11 financial capacity to meet its current and future
12 obligations to the Fund, and that the actuarial soundness
13 of the Fund may be reasonably expected to be unimpaired
14 by approval of participation by the applicant.
15 The Board shall notify the applicant of its findings
16 within 90 days after receiving the application, and if the
17 Board approves the application, participation by the
18 applicant shall commence on the effective date specified by
19 the Board.
20 (b) The following participating instrumentalities, so
21 long as they meet the requirements of Section 7-108 and the
22 area served by them or within their jurisdiction is not
23 located entirely within a municipality having more than one
24 million inhabitants, may be included hereunder:
25 i. Township School District Trustees.
26 ii. Multiple County and Consolidated Health
27 Departments created under Division 5-25 of the Counties
28 Code or its predecessor law.
29 iii. Public Building Commissions created under the
30 Public Building Commission Act, and located in counties
31 of less than 1,000,000 inhabitants.
32 iv. A multitype, consolidated or cooperative
33 library system created under the Illinois Library System
34 Act. Any library system created under the Illinois
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1 Library System Act that has one or more predecessors that
2 participated in the Fund may participate in the Fund upon
3 application. The Board shall establish procedures for
4 implementing the transfer of rights and obligations from
5 the predecessor system to the successor system.
6 v. Regional Planning Commissions created under
7 Division 5-14 of the Counties Code or its predecessor
8 law.
9 vi. Local Public Housing Authorities created under
10 the Housing Authorities Act, located in counties of less
11 than 1,000,000 inhabitants.
12 vii. Illinois Municipal League.
13 viii. Northeastern Illinois Metropolitan Area
14 Planning Commission.
15 ix. Southwestern Illinois Metropolitan Area
16 Planning Commission.
17 x. Illinois Association of Park Districts.
18 xi. Illinois Supervisors, County Commissioners and
19 Superintendents of Highways Association.
20 xii. Tri-City Regional Port District.
21 xiii. An association, or not-for-profit
22 corporation, membership in which is authorized under
23 Section 85-15 of the Township Code.
24 xiv. Drainage Districts operating under the
25 Illinois Drainage Code.
26 xv. Local mass transit districts created under the
27 Local Mass Transit District Act.
28 xvi. Soil and water conservation districts created
29 under the Soil and Water Conservation Districts Law.
30 xvii. Commissions created to provide water supply
31 or sewer services or both under Division 135 or Division
32 136 of Article 11 of the Illinois Municipal Code.
33 xviii. Public water districts created under the
34 Public Water District Act.
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1 xix. Veterans Assistance Commissions established
2 under Section 9 of the Military Veterans Assistance Act
3 that serve counties with a population of less than
4 1,000,000.
5 xx. The governing body of an entity, other than a
6 vocational education cooperative, created under an
7 intergovernmental cooperative agreement established
8 between participating municipalities under the
9 Intergovernmental Cooperation Act, which by the terms of
10 the agreement is the employer of the persons performing
11 services under the agreement under the usual common law
12 rules determining the employer-employee relationship.
13 The governing body of such an intergovernmental
14 cooperative entity established prior to July 1, 1988 may
15 make participation retroactive to the effective date of
16 the agreement and, if so, the effective date of
17 participation shall be the date the required application
18 is filed with the fund. If any such entity is unable to
19 pay the required employer contributions to the fund, then
20 the participating municipalities shall make payment of
21 the required contributions and the payments shall be
22 allocated as provided in the agreement or, if not so
23 provided, equally among them.
24 xxi. The Illinois Municipal Electric Agency.
25 xxii. The Waukegan Port District.
26 xxiii. The Fox Waterway Agency created under the
27 Fox Waterway Agency Act.
28 (c) The governing boards of special education joint
29 agreements created under Section 10-22.31 of the School Code
30 without designation of an administrative district, shall be
31 included within and be subject to this Article as
32 participating instrumentalities when the joint agreement
33 becomes effective. However, the governing board of any such
34 special education joint agreement in effect before September
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1 5, 1975 shall not be subject to this Article unless the joint
2 agreement is modified by the school districts to provide that
3 the governing board is subject to this Article, except as
4 otherwise provided by this Section.
5 The governing board of the Special Education District of
6 Lake County shall become subject to this Article as a
7 participating instrumentality on July 1, 1997.
8 Notwithstanding subdivision (a)1 of Section 7-139, on the
9 effective date of participation, employees of the governing
10 board of the Special Education District of Lake County shall
11 receive creditable service for their prior service with that
12 employer, up to a maximum of 5 years, without any employee
13 contribution. Employees may establish creditable service for
14 the remainder of their prior service with that employer, if
15 any, by applying in writing and paying an employee
16 contribution in an amount determined by the Fund, based on
17 the employee contribution rates in effect at the time of
18 application for the creditable service and the employee's
19 salary rate on the effective date of participation for that
20 employer, plus interest at the effective rate from the date
21 of the prior service to the date of payment. Application for
22 this creditable service must be made before July 1, 1998; the
23 payment may be made at any time while the employee is still
24 in service. The employer may elect to make the required
25 contribution on behalf of the employee.
26 The governing board of a special education joint
27 agreement created under Section 10-22.31 of the School Code
28 for which an administrative district has been designated, if
29 there are employees of the cooperative educational entity who
30 are not employees of the administrative district, may elect
31 to participate in the Fund and be included within this
32 Article as a participating instrumentality, subject to such
33 application procedures and rules as the Board may prescribe.
34 The Boards of Control of cooperative or joint educational
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1 programs or projects created and administered under Section
2 3-15.14 of the School Code, whether or not the Boards act as
3 their own administrative district, shall be included within
4 and be subject to this Article as participating
5 instrumentalities when the agreement establishing the
6 cooperative or joint educational program or project becomes
7 effective.
8 The governing board of a special education joint
9 agreement entered into after June 30, 1984 and prior to
10 September 17, 1985 which provides for representation on the
11 governing board by less than all the participating districts
12 shall be included within and subject to this Article as a
13 participating instrumentality. Such participation shall be
14 effective as of the date the joint agreement becomes
15 effective.
16 The governing boards of educational service centers
17 established under Section 2-3.62 of the School Code shall be
18 included within and subject to this Article as participating
19 instrumentalities. The governing boards of vocational
20 education cooperative agreements created under the
21 Intergovernmental Cooperation Act and approved by the State
22 Board of Education shall be included within and be subject to
23 this Article as participating instrumentalities. If any such
24 governing boards or boards of control are unable to pay the
25 required employer contributions to the fund, then the school
26 districts served by such boards shall make payment of
27 required contributions as provided in Section 7-172. The
28 payments shall be allocated among the several school
29 districts in proportion to the number of students in average
30 daily attendance for the last full school year for each
31 district in relation to the total number of students in
32 average attendance for such period for all districts served.
33 If such educational service centers, vocational education
34 cooperatives or cooperative or joint educational programs or
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1 projects created and administered under Section 3-15.14 of
2 the School Code are dissolved, the assets and obligations
3 shall be distributed among the districts in the same
4 proportions unless otherwise provided.
5 (d) The governing boards of special recreation joint
6 agreements created under Section 8-10b of the Park District
7 Code, operating without designation of an administrative
8 district or an administrative municipality appointed to
9 administer the program operating under the authority of such
10 joint agreement shall be included within and be subject to
11 this Article as participating instrumentalities when the
12 joint agreement becomes effective. However, the governing
13 board of any such special recreation joint agreement in
14 effect before January 1, 1980 shall not be subject to this
15 Article unless the joint agreement is modified, by the
16 districts and municipalities which are parties to the
17 agreement, to provide that the governing board is subject to
18 this Article.
19 If the Board returns any employer and employee
20 contributions to any employer which erroneously submitted
21 such contributions on behalf of a special recreation joint
22 agreement, the Board shall include interest computed from the
23 end of each year to the date of payment, not compounded, at
24 the rate of 7% per annum.
25 (e) Each multi-township assessment district, the board
26 of trustees of which has adopted this Article by ordinance
27 prior to April 1, 1982, shall be a participating
28 instrumentality included within and subject to this Article
29 effective December 1, 1981. The contributions required under
30 Section 7-172 shall be included in the budget prepared under
31 and allocated in accordance with Section 2-30 of the Property
32 Tax Code.
33 (f) Beginning January 1, 1992, each prospective
34 participating municipality or participating instrumentality
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1 shall pay to the Fund the cost, as determined by the Board,
2 of a study prepared by the Fund or its actuary, detailing the
3 prospective costs of participation in the Fund to be expected
4 by the municipality or instrumentality.
5 (Source: P.A. 88-670, eff. 12-2-94, 89-162, eff. 7-19-95.)
6 (40 ILCS 5/7-141.1)
7 Sec. 7-141.1. Early retirement incentive.
8 (a) The General Assembly finds and declares that:
9 (1) Units of local government across the State have
10 been functioning under a financial crisis.
11 (2) This financial crisis is expected to continue.
12 (3) Units of local government must depend on
13 additional sources of revenue and, when those sources are
14 not forthcoming, must establish cost-saving programs.
15 (4) An early retirement incentive designed
16 specifically to target highly-paid senior employees could
17 result in significant annual cost savings.
18 (5) The early retirement incentive should be made
19 available only to those units of local government that
20 determine that an early retirement incentive is in their
21 best interest.
22 (6) A unit of local government adopting a program
23 of early retirement incentives under this Section is
24 encouraged to implement personnel procedures to prohibit,
25 for at least 5 years, the rehiring (whether on payroll or
26 by independent contract) of employees who receive early
27 retirement incentives.
28 (7) A unit of local government adopting a program
29 of early retirement incentives under this Section is also
30 encouraged to replace as few of the participating
31 employees as possible and to hire replacement employees
32 for salaries totaling no more than 80% of the total
33 salaries formerly paid to the employees who participate
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1 in the early retirement program.
2 It is the primary purpose of this Section to encourage
3 units of local government that can realize true cost savings,
4 or have determined that an early retirement program is in
5 their best interest, to implement an early retirement
6 program.
7 (b) This Section does not apply to any employer that is
8 a city, village, or incorporated town, nor to the employees
9 of any such employer. All references in this Section to an
10 "employer" or "unit of local government" are specifically
11 intended to exclude every employer that is a city, village,
12 or incorporated town.
13 The benefits provided in this Section are available only
14 to members employed by a participating employer that has
15 filed with the Board of the Fund a resolution or ordinance
16 expressly providing for the creation of an early retirement
17 incentive program under this Section for its employees and
18 specifying the effective date of the early retirement
19 incentive program. Subject to the limitation in subsection
20 (h), an employer may adopt a resolution or ordinance
21 providing a program of early retirement incentives under this
22 Section at any time, but no more often than once in 5 years.
23 The resolution or ordinance shall be in substantially the
24 following form:
25 RESOLUTION (ORDINANCE) NO. ....
26 A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
27 RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
28 IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
29 WHEREAS, Section 7-141.1 of the Illinois Pension Code
30 provides that a participating employer may elect to adopt an
31 early retirement incentive program offered by the Illinois
32 Municipal Retirement Fund by adopting a resolution or
33 ordinance; and
34 WHEREAS, The goal of adopting an early retirement program
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1 is to realize a substantial savings in personnel costs by
2 offering early retirement incentives to employees who have
3 accumulated many years of service credit; and
4 WHEREAS, Implementation of the early retirement program
5 will provide a budgeting tool to aid in controlling payroll
6 costs; and
7 WHEREAS, The (name of governing body) has determined that
8 the adoption of an early retirement incentive program is in
9 the best interests of the (name of participating employer);
10 therefore be it
11 RESOLVED (ORDAINED) by the (name of governing body) of
12 (name of participating employer) that:
13 (1) The (name of participating employer) does hereby
14 adopt the Illinois Municipal Retirement Fund early retirement
15 incentive program as provided in Section 7-141.1 of the
16 Illinois Pension Code. The early retirement incentive
17 program shall take effect on (date).
18 (2) In order to help achieve a true cost savings, a
19 person who retires under the early retirement incentive
20 program shall lose those incentives if he or she later
21 accepts employment with any IMRF employer in a position for
22 which participation in IMRF is required or is elected by the
23 employee.
24 (3) In order to utilize an early retirement incentive as
25 a budgeting tool, the (name of participating employer) will
26 use its best efforts either to limit the number of employees
27 who replace the employees who retire under the early
28 retirement program or to limit the salaries paid to the
29 employees who replace the employees who retire under the
30 early retirement program.
31 (4) The effective date of each employee's retirement
32 under this early retirement program shall be set by (name of
33 employer) and shall be no earlier than the effective date of
34 the program and no later than one year after that effective
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1 date; except that the employee may require that the
2 retirement date set by the employer be no later than the June
3 30 next occurring after the effective date of the program and
4 no earlier than the date upon which the employee qualifies
5 for retirement.
6 (5) To be eligible for the early retirement incentive
7 under this Section, the employee must have attained age 50
8 and have at least 20 years of creditable service by his or
9 her retirement date.
10 (6) The (clerk or secretary) shall promptly file a
11 certified copy of this resolution (ordinance) with the Board
12 of Trustees of the Illinois Municipal Retirement Fund.
13 CERTIFICATION
14 I, (name), the (clerk or secretary) of the (name of
15 participating employer) of the County of (name), State of
16 Illinois, do hereby certify that I am the keeper of the books
17 and records of the (name of employer) and that the foregoing
18 is a true and correct copy of a resolution (ordinance) duly
19 adopted by the (governing body) at a meeting duly convened
20 and held on (date).
21 SEAL
22 (Signature of clerk or secretary)
23 (c) To be eligible for the benefits provided under an
24 early retirement incentive program adopted under this
25 Section, a member must:
26 (1) be a participating employee of this Fund who,
27 on the effective date of the program, (i) is in active
28 payroll status as an employee of a participating employer
29 that has filed the required ordinance or resolution with
30 the Board, (ii) is on layoff status from such a position
31 with a right of re-employment or recall to service, (iii)
32 is on a leave of absence from such a position, or (iv) is
33 on disability but has not been receiving benefits under
34 Section 7-146 or 7-150 for a period of more than 2 years
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1 from the date of application;
2 (2) have never previously received a retirement
3 annuity under this Article or under the Retirement
4 Systems Reciprocal Act using service credit established
5 under this Article;
6 (3) file with the Board within 60 days of the
7 effective date of the program an application requesting
8 the benefits provided in this Section;
9 (4) have at least 20 years of creditable service in
10 the Fund by the date of retirement, without the use of
11 any creditable service established under this Section;
12 (5) have attained age 50 by the date of retirement,
13 without the use of any age enhancement received under
14 this Section; and
15 (6) be eligible to receive a retirement annuity
16 under this Article by the date of retirement, for which
17 purpose the age enhancement and creditable service
18 established under this Section may be considered.
19 (d) The employer shall determine the retirement date for
20 each employee participating in the early retirement program
21 adopted under this Section. The retirement date shall be no
22 earlier than the effective date of the program and no later
23 than one year after that effective date, except that the
24 employee may require that the retirement date set by the
25 employer be no later than the June 30 next occurring after
26 the effective date of the program and no earlier than the
27 date upon which the employee qualifies for retirement. The
28 employer shall give each employee participating in the early
29 retirement program at least 30 days written notice of the
30 employee's designated retirement date, unless the employee
31 waives this notice requirement.
32 (e) An eligible person may establish up to 5 years of
33 creditable service under this Section. In addition, for each
34 period of creditable service established under this Section,
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1 a person shall have his or her age at retirement deemed
2 enhanced by an equivalent period.
3 The creditable service established under this Section may
4 be used for all purposes under this Article and the
5 Retirement Systems Reciprocal Act, except for the computation
6 of final rate of earnings and the determination of earnings,
7 salary, or compensation under this or any other Article of
8 the Code.
9 The age enhancement established under this Section may be
10 used for all purposes under this Article (including
11 calculation of the reduction imposed under subdivision
12 (a)1b(iv) of Section 7-142), except for purposes of a
13 reversionary annuity under Section 7-145 and any
14 distributions required because of age. The age enhancement
15 established under this Section may be used in calculating a
16 proportionate annuity payable by this Fund under the
17 Retirement Systems Reciprocal Act, but shall not be used in
18 determining benefits payable under other Articles of this
19 Code under the Retirement Systems Reciprocal Act.
20 (f) For all creditable service established under this
21 Section, the member must pay to the Fund an employee
22 contribution consisting of 4.5% of the member's highest
23 annual salary rate used in the determination of the final
24 rate of earnings for retirement annuity purposes for each
25 year of creditable service granted under this Section. For
26 creditable service established under this Section by a person
27 who is a sheriff's law enforcement employee to be deemed
28 service as a sheriff's law enforcement employee, the employee
29 contribution shall be at the rate of 6.5% of highest annual
30 salary per year of creditable service granted. Contributions
31 for fractions of a year of service shall be prorated. Any
32 amounts that are disregarded in determining the final rate of
33 earnings under subdivision (d)(5) of Section 7-116 (the 125%
34 rule) shall also be disregarded in determining the required
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1 contribution under this subsection (f).
2 The employee contribution shall be paid to the Fund as
3 follows: If the member is entitled to a lump sum payment for
4 accumulated vacation, sick leave, or personal leave upon
5 withdrawal from service, the employer shall deduct the
6 employee contribution from that lump sum and pay the deducted
7 amount directly to the Fund. If there is no such lump sum
8 payment or the required employee contribution exceeds the net
9 amount of the lump sum payment, then the remaining amount
10 due, at the option of the employee, may either be paid to the
11 Fund before the annuity commences or deducted from the
12 retirement annuity in 24 equal monthly installments.
13 (g) An annuitant who has received any age enhancement or
14 creditable service under this Section and thereafter accepts
15 employment with or enters into a personal services contract
16 with an employer under this Article thereby forfeits that age
17 enhancement and creditable service. A person forfeiting
18 early retirement incentives under this subsection (i) must
19 repay to the Fund that portion of the retirement annuity
20 already received which is attributable to the early
21 retirement incentives that are being forfeited, (ii) shall
22 not be eligible to participate in any future early retirement
23 program adopted under this Section, and (iii) is entitled to
24 a refund of the employee contribution paid under subsection
25 (f). The Board shall deduct the required repayment from the
26 refund and may impose a reasonable payment schedule for
27 repaying the amount, if any, by which the required repayment
28 exceeds the refund amount.
29 (h) The additional unfunded liability accruing as a
30 result of the adoption of a program of early retirement
31 incentives under this Section by an employer shall be
32 amortized over a period of 10 years beginning on January 1 of
33 the second calendar year following the calendar year in which
34 the latest date for beginning to receive a retirement annuity
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1 under the program (as determined by the employer under
2 subsection (d) of this Section) occurs; except that the
3 employer may provide for a shorter amortization period (of no
4 less than 5 years) by adopting an ordinance or resolution
5 specifying the length of the amortization period and
6 submitting a certified copy of the ordinance or resolution to
7 the Fund no later than 6 months after the effective date of
8 the program. An employer, at its discretion, may accelerate
9 payments to the Fund.
10 An employer may provide more than one early retirement
11 incentive program for its employees under this Section.
12 However, an employer that has provided an early retirement
13 incentive program for its employees under this Section may
14 not provide another early retirement incentive program under
15 this Section until (1) the liability arising from the earlier
16 program has been fully paid to the Fund and (2) at least 6
17 years have elapsed from the effective date of the previous
18 program.
19 (Source: P.A. 89-329, eff. 8-17-95.)
20 (40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
21 Sec. 7-171. Finance; taxes.
22 (a) Each municipality other than a school district shall
23 appropriate an amount sufficient to provide for the current
24 municipality contributions required by Section 7-172 of this
25 Article, for the fiscal year for which the appropriation is
26 made and all amounts due for municipal contributions for
27 previous years. Those municipalities which have been assessed
28 an annual amount to amortize its unfunded obligation, as
29 provided in subparagraph 5 of paragraph (a) of Section 7-172
30 of this Article, shall include in the appropriation an amount
31 sufficient to pay the amount assessed. The appropriation
32 shall be based upon an estimate of assets available for
33 municipality contributions and liabilities therefor for the
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1 fiscal year for which appropriations are to be made,
2 including funds available from levies for this purpose in
3 prior years.
4 (b) For the purpose of providing monies for municipality
5 contributions, beginning for the year in which a municipality
6 is included in this fund:
7 (1) A municipality other than a school district may
8 levy a tax which shall not exceed the amount appropriated
9 for municipality contributions.
10 (2) A school district may levy a tax in an amount
11 reasonably calculated at the time of the levy to provide
12 for the municipality contributions required under Section
13 7-172 of this Article for the fiscal years for which
14 revenues from the levy will be received and all amounts
15 due for municipal contributions for previous years. Any
16 levy adopted before the effective date of this amendatory
17 Act of 1995 by a school district shall be considered
18 valid and authorized to the extent that the amount was
19 reasonably calculated at the time of the levy to provide
20 for the municipality contributions required under Section
21 7-172 for the fiscal years for which revenues from the
22 levy will be received and all amounts due for municipal
23 contributions for previous years. In no event shall a
24 budget adopted by a school district limit a levy of that
25 school district adopted under this Section.
26 (c) Any county which is a part of an educational service
27 region comprised of two or more counties formed under Section
28 3A of The School Code may include in its appropriation an
29 amount sufficient to provide its proportionate share of the
30 municipality contributions of the region. The tax levy
31 authorized by this Section may include an amount necessary to
32 provide monies for this contribution.
33 (d) Any county that is a part of a multiple-county
34 health department or consolidated health department which is
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1 formed under "An Act in relation to the establishment and
2 maintenance of county and multiple-county public health
3 departments", approved July 9, 1943, as amended, and which is
4 a participating instrumentality may include in the county's
5 appropriation an amount sufficient to provide its
6 proportionate share of municipality contributions of the
7 department. The tax levy authorized by this Section may
8 include the amount necessary to provide monies for this
9 contribution.
10 (d-5) A school district participating in a special
11 education joint agreement created under Section 10-22.31 of
12 the School Code that is a participating instrumentality may
13 include in the school district's tax levy under this Section
14 an amount sufficient to provide its proportionate share of
15 the municipality contributions for current and prior service
16 by employees of the participating instrumentality created
17 under the joint agreement.
18 (e) Such tax shall be levied and collected in like
19 manner, with the general taxes of the municipality and shall
20 be in addition to all other taxes which the municipality is
21 now or may hereafter be authorized to levy upon all taxable
22 property therein, and shall be exclusive of and in addition
23 to the amount of tax levied for general purposes under
24 Section 8-3-1 of the "Illinois Municipal Code", approved May
25 29, 1961, as amended, or under any other law or laws which
26 may limit the amount of tax which the municipality may levy
27 for general purposes. The tax may be levied by the governing
28 body of the municipality without being authorized as being
29 additional to all other taxes by a vote of the people of the
30 municipality.
31 (f) The county clerk of the county in which any such
32 municipality is located, in reducing tax levies shall not
33 consider any such tax as a part of the general tax levy for
34 municipality purposes, and shall not include the same in the
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1 limitation of any other tax rate which may be extended.
2 (g) The amount of the tax to be levied in any year
3 shall, within the limits herein prescribed, be determined by
4 the governing body of the respective municipality.
5 (h) The revenue derived from any such tax levy shall be
6 used only for the purposes specified in this Article, and, as
7 collected, shall be paid to the treasurer of the municipality
8 levying the tax. Monies received by a county treasurer for
9 use in making contributions to a consolidated educational
10 service region for its municipality contributions shall be
11 held by him for that purpose and paid to the region in the
12 same manner as other monies appropriated for the expense of
13 the region.
14 (Source: P.A. 89-329, eff. 8-17-95.)
15 (40 ILCS 5/9-134.3 new)
16 Sec. 9-134.3. Early retirement incentives.
17 (a) To be eligible for the benefits provided in this
18 Section, a person must:
19 (1) be a current contributing member of the Fund
20 established under this Article who, on May 1, 1997 and
21 within 30 days prior to the date of retirement, is (i) in
22 active payroll status in a position of employment under
23 this Article or (ii) receiving disability benefits under
24 Section 9-156 or 9-157;
25 (2) have not previously retired from the Fund;
26 (3) file with the Board before October 1, 1997, a
27 written application requesting the benefits provided in
28 this Section;
29 (4) elect to retire under this Section on or after
30 September 1, 1997 and on or before February 28, 1998 (or
31 the date established under subsection (d), if
32 applicable);
33 (5) have attained age 55 on or before the date of
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1 retirement and before February 28, 1998; and
2 (6) have at least 10 years of creditable service in
3 the Fund, excluding service in any of the other
4 participating systems under the Retirement Systems
5 Reciprocal Act, by the effective date of the retirement
6 annuity or February 28, 1998, whichever occurs first.
7 (b) An employee who qualifies for the benefits provided
8 under this Section shall be entitled to the following:
9 (1) The employee's retirement annuity, as
10 calculated under the other provisions of this Article,
11 shall be increased at the time of retirement by an amount
12 equal to 1% of the employee's average annual salary for
13 the highest 4 consecutive years within the last 10 years
14 of service, multiplied by the employee's number of years
15 of service credit in this Fund up to a maximum of 10
16 years; except that the total retirement annuity,
17 including any additional benefits elected under Section
18 9-121.6 or 9-179.3, shall not exceed 80% of that highest
19 average annual salary.
20 (2) If the employee's retirement annuity is
21 calculated under Section 9-134, the employee shall not be
22 subject to the reduction in retirement annuity because of
23 retirement below age 60 that is otherwise required under
24 that Section.
25 (c) A person who elects to retire under the provisions
26 of this Section thereby relinquishes his or her right, if
27 any, to have the retirement annuity calculated under the
28 alternative formula formerly set forth in Section 20-122 of
29 the Retirement Systems Reciprocal Act.
30 (d) In the case of an employee whose immediate
31 retirement could jeopardize public safety or create hardship
32 for the employer, the deadline for retirement provided in
33 subdivision (a)(4) of this Section may be extended to a
34 specified date, no later than August 31, 1998, by the
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1 employee's department head, with the approval of the
2 President of the County Board. In the case of an employee
3 who is not employed by a department of the County, the
4 employee's "department head", for the purposes of this
5 Section, shall be a person designated by the President of the
6 County Board.
7 (e) Notwithstanding Section 9-161, an annuitant who
8 reenters service under this Article after receiving a
9 retirement annuity based on benefits provided under this
10 Section thereby forfeits the right to continue to receive
11 those benefits and shall have his or her retirement annuity
12 recalculated without the benefits provided in this Section.
13 (f) This Section also applies to the Fund established
14 under Article 10 of this Code.
15 (40 ILCS 5/14-105.1) (from Ch. 108 1/2, par. 14-105.1)
16 Sec. 14-105.1. Transfer and reinstatement by General
17 Assembly member.
18 (a) Any active (and until February 1, 1993, any former)
19 member of the General Assembly Retirement System may apply
20 for transfer of his credits and creditable service
21 accumulated under this System to the General Assembly System
22 or a Fund established under Article 5 or 12 of this Code.
23 Such credits and creditable service shall be transferred
24 forthwith. Payment by this System to the General Assembly
25 Retirement System or the Fund established under Article 5 or
26 12 shall be made at the same time and shall consist of:
27 (1) the amounts accumulated to the credit of the
28 applicant, including regular interest, on the books of
29 the System on the date of transfer; and
30 (2) employer contributions in an amount equal to
31 the amount of member contributions as determined under
32 subparagraph (1).
33 Participation in this System as to any credits transferred
-33- LRB9000609EGfgam20
1 under this Section shall terminate on the date of transfer.
2 (b) An active (and until February 1, 1993, a former)
3 member of the General Assembly who has service credits and
4 creditable service under the System may establish additional
5 service credits and creditable service for periods during
6 which he was an elected official and could have elected to
7 participate but did not so elect. Service credits and
8 creditable service may be established by payment to the
9 System of an amount equal to the contributions he would have
10 made if he had elected to participate, plus regular interest
11 to the date of payment.
12 (c) An active (and until February 1, 1993, a former)
13 member of the General Assembly Retirement System may
14 reinstate service and service credits terminated upon receipt
15 of a separation benefit, by payment to the System of the
16 amount of the separation benefit plus regular interest
17 thereon to the date of payment.
18 (d) An active member of this System may reinstate
19 creditable service that was terminated upon transfer under
20 subsection (a) and has been retransferred back to this System
21 under Section 2-117.4 of this Code by applying to the System
22 in writing within 6 months after the effective date of this
23 amendatory Act and paying to the System an amount to be
24 determined by the Board, equal to (1) the difference between
25 the amount of employee and employer contributions for that
26 service as defined in this Section and the amount repaid to
27 this System under Section 2-117.4, plus (2) regular interest
28 thereon from the date of the transfer to the Article 2 system
29 under this Section to the date of payment.
30 (Source: P.A. 86-27; 86-273; 86-1028; 86-1488; 87-794.)
31 (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
32 Sec. 15-112. Final rate of earnings. "Final rate of
33 earnings": For an employee who is paid on an hourly basis or
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1 who receives an annual salary in installments during 12
2 months of each academic year, the average annual earnings
3 during the 48 consecutive calendar month period ending with
4 the last day of final termination of employment or the 4
5 consecutive academic years of service in which the employee's
6 earnings were the highest, whichever is greater. For any
7 other employee, the average annual earnings during the 4
8 consecutive academic years of service in which his or her
9 earnings were the highest. For an employee with less than 48
10 months or 4 consecutive academic years of service, the
11 average earnings during his or her entire period of service.
12 The earnings of an employee with more than 36 months of
13 service prior to the date of becoming a participant are, for
14 such period, considered equal to the average earnings during
15 the last 36 months of such service. For an employee on leave
16 of absence with pay, or on leave of absence without pay who
17 makes contributions during such leave, earnings are assumed
18 to be equal to the basic compensation on the date the leave
19 began. For an employee on disability leave, earnings are
20 assumed to be equal to the basic compensation on the date
21 disability occurs or the average earnings during the 24
22 months immediately preceding the month in which disability
23 occurs, whichever is greater.
24 For a participant who retires on or after the effective
25 date of this amendatory Act of 1997 with at least 20 years of
26 service as a firefighter or police officer under this
27 Article, the final rate of earnings shall be the annual rate
28 of earnings received by the participant on his or her last
29 day as a firefighter or police officer under this Article, if
30 that is greater than the final rate of earnings as calculated
31 under the other provisions of this Section.
32 If a participant is an employee for at least 6 months
33 during the academic year in which his or her employment is
34 terminated, the annual final rate of earnings shall be 25% of
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1 the sum of (1) the annual basic compensation for that year,
2 and (2) the amount earned during the 36 months immediately
3 preceding that year, if this is greater than the final rate
4 of earnings as calculated under the other provisions of this
5 Section.
6 In the determination of the final rate of earnings for an
7 employee, that part of an employee's earnings for any
8 academic year beginning after June 30, 1997, which exceeds
9 the employee's earnings with that employer for the preceding
10 year by more than 20 percent shall be excluded; in the event
11 that an employee has more than one employer this limitation
12 shall be calculated separately for the earnings with each
13 employer. In making such calculation, only the basic
14 compensation of employees shall be considered, without regard
15 to vacation or overtime or to contracts for summer
16 employment.
17 The following are not considered as earnings in
18 determining final rate of earnings: separation pay,
19 retirement pay, payment in lieu of unused sick leave and
20 payments from an employer for the period used in determining
21 final rate of earnings for any purpose other than services
22 rendered, leave of absence or vacation granted during that
23 period, and vacation of up to 56 work days allowed upon
24 termination of employment under a vacation policy of an
25 employer which was in effect on or before January 1, 1977.
26 Intermittent periods of service shall be considered as
27 consecutive in determining final rate of earnings.
28 (Source: P.A. 84-1472.)
29 (40 ILCS 5/15-113.2) (from Ch. 108 1/2, par. 15-113.2)
30 Sec. 15-113.2. Service for leaves of absence. "Service
31 for leaves of absence" includes those periods of leaves of
32 absence at less than 50% pay, except military leave and
33 periods of disability leave in excess of 60 days, for which
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1 the employee pays the contributions required under Section
2 15-157 in accordance with rules prescribed by the board based
3 upon the employee's basic compensation on the date the leave
4 begins, or in the case of leave for service with a teacher
5 organization, based upon the actual compensation received by
6 the employee for such service after January 26, 1988, if the
7 employee so elects within 30 days of that date or the date
8 the leave for service with a teacher organization begins,
9 whichever is later; provided that the employee (1) returns to
10 employment covered by this system at the expiration of the
11 leave, or within 30 days after the termination of a
12 disability which occurs during the leave and continues this
13 employment at a percentage of time equal to or greater than
14 the percentage of time immediately preceding the leave of
15 absence for at least 8 consecutive months or a period equal
16 to the period of the leave, whichever is less, or (2) is
17 precluded from meeting the foregoing conditions because of
18 disability or death. If service credit is denied because the
19 employee fails to meet these conditions, the contributions
20 covering the leave of absence shall be refunded without
21 interest. The return to employment condition does not apply
22 if the leave of absence is for service with a teacher
23 organization and the leave of absence is in effect on the
24 effective date of this amendatory Act of 1993.
25 Service credit provided under this Section shall not
26 exceed 3 years in any period of 10 years, unless the employee
27 is on special leave granted by the employer for service with
28 a teacher organization. Commencing with the fourth year in
29 any period of 10 years, a participant on such special leave
30 is also required to pay employer contributions equal to the
31 normal cost as defined in Section 15-155, based upon the
32 employee's basic compensation on the date the leave begins,
33 or based upon the actual compensation received by the
34 employee for service with a teacher organization if the
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1 employee has so elected.
2 (Source: P.A. 86-1488; 87-1265.)
3 (40 ILCS 5/15-113.3) (from Ch. 108 1/2, par. 15-113.3)
4 Sec. 15-113.3. Service for periods of military service.
5 "Service for periods of military service": Those periods,
6 not exceeding 5 years, during which a person served in the
7 armed forces of the United States, of which all but 2 years
8 must have immediately followed a period of employment with an
9 employer under this system or the State Employees' Retirement
10 System of Illinois; provided that the person received a
11 discharge other than dishonorable and again became an
12 employee under this system within one year after discharge.
13 However, for the up to 2 years of military service not
14 immediately following employment, the applicant must make
15 contributions to the System (1) at the rates provided in
16 Section 15-157 based upon the employee's basic compensation
17 on the last date as a participating employee prior to such
18 military service, or on the first date as a participating
19 employee after such military service, whichever is greater,
20 plus (2) an amount determined by the board to be equal to the
21 employer's normal cost of the benefits accrued for such
22 military service, plus (3) interest on items (1) and (2) at
23 the effective rate from the later of the date of first
24 membership in the System or the date of conclusion of
25 military service to the date of payment. The change in the
26 required contribution for purchased military credit made by
27 this amendatory Act of 1993 does not entitle any person to a
28 refund of contributions already paid.
29 The changes to this Section made by this amendatory Act
30 of 1991 shall apply not only to persons who on or after its
31 effective date are in service under the System, but also to
32 persons whose employment terminated prior to that date,
33 whether or not the person is an annuitant on that date. In
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1 the case of an annuitant who applies for credit allowable
2 under this Section for a period of military service that did
3 not immediately follow employment, and who has made the
4 required contributions for such credit, the annuity shall be
5 recalculated to include the additional service credit, with
6 the increase taking effect on the date the System received
7 written notification of the annuitant's intent to purchase
8 the credit, if payment of all the required contributions is
9 made within 60 days of such notice, or else on the first
10 annuity payment date following the date of payment of the
11 required contributions. In calculating the automatic annual
12 increase for an annuity that has been recalculated under this
13 Section, the increase attributable to the additional service
14 allowable under this amendatory Act of 1991 shall be included
15 in the calculation of automatic annual increases accruing
16 after the effective date of the recalculation.
17 (Source: P.A. 87-794; 87-1265.)
18 (40 ILCS 5/15-113.4) (from Ch. 108 1/2, par. 15-113.4)
19 Sec. 15-113.4. Service for unused sick leave. "Service
20 for unused sick leave": A participant who is an employee
21 under this System or one of the other systems subject to
22 Article 20 of this Code within 60 days immediately preceding
23 the date on which his or her retirement annuity begins, is
24 entitled to credit for service for that portion of unused
25 sick leave earned in the course of employment with an
26 employer and credited on the date of termination of
27 employment by an employer for which payment is not received,
28 in accordance with the following schedule: 30 through 90
29 full calendar days and 20 through 59 full work days of unused
30 sick leave, 1/4 of a year of service; 91 through 180 full
31 calendar days and 60 through 119 full work days, 1/2 of a
32 year of service; 181 through 270 full calendar days and 120
33 through 179 full work days, 3/4 of a year of service; 271
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1 through 360 full calendar days and 180 through 240 full work
2 days, one year of service. Only uncompensated, unused sick
3 leave earned in accordance with an employer's sick leave
4 accrual policy generally applicable to employees or a class
5 of employees shall be taken into account in calculating
6 service credit under this Section. Any uncompensated, unused
7 sick leave granted by an employer to facilitate the hiring,
8 retirement, termination, or other special circumstances of an
9 employee shall not be taken into account in calculating
10 service credit under this Section. If a participant
11 transfers from one employer to another, the unused sick leave
12 credited by the previous employer shall be considered in
13 determining service to be credited under this Section, even
14 if the participant terminated service prior to the effective
15 date of P.A. 86-272 (August 23, 1989); if necessary, the
16 retirement annuity shall be recalculated to reflect such sick
17 leave credit. Each employer shall certify to the board the
18 number of days of unused sick leave accrued to the
19 participant's credit on the date that the participant's
20 status as an employee terminated. This period of unused sick
21 leave shall not be considered in determining the date the
22 retirement annuity begins.
23 (Source: P.A. 86-272; 87-794.)
24 (40 ILCS 5/15-113.7) (from Ch. 108 1/2, par. 15-113.7)
25 Sec. 15-113.7. Service for other public employment.
26 "Service for other public employment": Includes those
27 periods not exceeding the lesser of 10 years or 2/3 of the
28 service granted under other Sections of this Article dealing
29 with service credit, during which a person was employed full
30 time by the United States government, or by the government of
31 a state, or by a political subdivision of a state, or by an
32 agency or instrumentality of any of the foregoing, if the
33 person (1) cannot qualify for a retirement pension or other
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1 benefit based upon employer contributions from another
2 retirement system, exclusive of federal social security,
3 based in whole or in part upon this employment, and (2) pays
4 the lesser of (A) an amount equal to 8% of his or her annual
5 basic compensation on the date of becoming a participating
6 employee subsequent to this service multiplied by the number
7 of years of such service, together with compound interest
8 from the date participation begins to the date payment is
9 received by the board at the rate of 6% per annum through
10 August 31, 1982, and at the effective rates after that date,
11 and (B) 50% of the actuarial value of the increase in the
12 retirement annuity provided by this service, and (3)
13 contributes for at least 5 years subsequent to this
14 employment to one or more of the following systems: the
15 State Universities Retirement System, the Teachers'
16 Retirement System of the State of Illinois, and the Public
17 School Teachers' Pension and Retirement Fund of Chicago. If
18 a function of a governmental unit as defined by Section
19 20-107 is transferred by law, in whole or in part to an
20 employer, and an employee transfers employment from this
21 governmental unit to such employer within 6 months of the
22 transfer of the function, the payment for service authorized
23 under this Section shall not exceed the amount which would
24 have been payable for this service to the retirement system
25 covering the governmental unit from which the function was
26 transferred.
27 The service granted under this Section shall not be
28 considered in determining whether the person has the minimum
29 of 8 years of service required to qualify for a retirement
30 annuity at age 55 or the 5 years of service required to
31 qualify for a retirement annuity at age 62, as provided in
32 Section 15-135. The maximum allowable service of 10 years
33 for this governmental employment shall be reduced by the
34 service credit which is validated under paragraph (3) of
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1 Section 16-127 and paragraph one of Section 17-133.
2 Except as hereinafter provided, this Section shall not
3 apply to persons who become participants in the system after
4 September 1, 1974. Except as hereinafter provided, credit
5 for military service under this Section shall be allowed only
6 to persons who have applied for such credit before September
7 1, 1974. The foregoing September 1, 1974, limitations do not
8 apply to any person who became a participant in the system on
9 or before January 15, 1977, and prior thereto, had a minimum
10 of 20 years of service credit granted in the General Assembly
11 Retirement System.
12 (Source: P.A. 87-1265.)
13 (40 ILCS 5/15-125) (from Ch. 108 1/2, par. 15-125)
14 Sec. 15-125. "Prescribed Rate of Interest; Effective
15 Rate of Interest":
16 (1) "Prescribed rate of interest": The rate of interest
17 to be used in actuarial valuations and in development of
18 actuarial tables as determined by the board on the basis of
19 the probable average effective rate of interest on a long
20 term basis.
21 (2) "Effective rate of interest": The interest rate for
22 all or any part of a fiscal year that is determined by the
23 board based on factors including the system's past and
24 expected investment experience; historical and expected
25 fluctuations in the market value of investments; the
26 desirability of minimizing volatility in the effective rate
27 of interest from year to year; the provision of reserves for
28 anticipated losses upon sales, redemptions, or other
29 disposition of investments and for variations in interest
30 experience. This amendatory Act of 1997 is a clarification
31 of existing law. The interest rate for any fiscal year
32 determined by the board from the investment experience of the
33 preceding fiscal years and the estimated investment
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1 experience of the current fiscal year. In determining the
2 effective rate of interest to be credited to member
3 contribution accounts and other reserves, the board may
4 provide for reserves for anticipated losses upon sales,
5 redemptions or other disposition of investments and for
6 reserves for variations in interest experience.
7 (Source: P.A. 79-1146.)
8 (40 ILCS 5/15-136.2) (from Ch. 108 1/2, par. 15-136.2)
9 Sec. 15-136.2. Early retirement without discount. A
10 participant whose retirement annuity begins after June 1,
11 1981 and on or before September 1, 2002 1997 and within six
12 months of the last day of employment for which retirement
13 contributions were required, may elect at the time of
14 application to make a one time employee contribution to the
15 System and thereby avoid the early retirement reduction in
16 retirement annuity specified under subsection (b) of Section
17 15-136. The exercise of the election shall obligate the last
18 employer to also make a one time non-refundable contribution
19 to the System.
20 The one time employee and employer contributions shall be
21 a percentage of the retiring participant's highest full time
22 annual salary rate during the academic years which were
23 considered in determining his or her final rate of earnings,
24 or if not full time then the full time equivalent. The
25 employee contribution rate shall be 7% multiplied by the
26 lesser of the following 2 sums: (1) the number of years that
27 the participant is less than age 60; or (2) the number of
28 years that the participant's creditable service is less than
29 35 years. The employer contribution shall be at the rate of
30 20% for each year the participant is less than age 60. The
31 employer shall pay the employer contribution from the same
32 source of funds which is used in paying earnings to
33 employees.
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1 Upon receipt of the application and election, the System
2 shall determine the one time employee and employer
3 contributions. The provisions of this Section shall not be
4 applicable until all the above outlined contributions have
5 been received by the System; however, the date such
6 contributions are received shall not be considered in
7 determining the effective date of retirement.
8 For persons who apply to the Board after the effective
9 date of this amendatory Act of 1993 and before July 1, 1993,
10 requesting a retirement annuity to begin no earlier than July
11 1, 1993 and no later than June 30, 1994, the employer shall
12 pay both the employee and employer contributions required
13 under this Section.
14 The number of employees retiring under this Section in
15 any fiscal year may be limited at the option of the employer
16 to no less than 15% of those eligible. The right to elect
17 early retirement without discount shall be allocated among
18 those applying on the basis of seniority in the service of
19 the last employer.
20 (Source: P.A. 87-794; 87-1265.)
21 (40 ILCS 5/15-143) (from Ch. 108 1/2, par. 15-143)
22 Sec. 15-143. Death benefits - General provisions. All
23 death benefits shall be paid as a single cash sum or
24 otherwise as the beneficiary and the board mutually agree,
25 except where an annuity is payable under Section 15-144. A
26 death benefit shall be paid as soon as practicable after
27 receipt by the board of (1) a written application by the
28 beneficiary and (2) such evidence of death and identification
29 as the board shall require.
30 (Source: P.A. 83-1440.)
31 (40 ILCS 5/15-153.2) (from Ch. 108 1/2, par. 15-153.2)
32 Sec. 15-153.2. Disability retirement annuity. A
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1 participant whose disability benefits are discontinued under
2 the provisions of clause (6) (5) of Section 15-152, is
3 entitled to a disability retirement annuity of 35% of the
4 basic compensation which was payable to the participant at
5 the time that disability began, provided at least 2 licensed
6 and practicing physicians appointed by the board certify that
7 the participant has a medically determinable physical or
8 mental impairment which would prevent him or her from
9 engaging in any substantial gainful activity, and which can
10 be expected to result in death or which has lasted or can be
11 expected to last for a continuous period of not less than 12
12 months. The terms "medically determinable physical or mental
13 impairment" and "substantial gainful activity" shall have the
14 meanings ascribed to them in the "Social Security Act", as
15 now or hereafter amended, and the regulations issued
16 thereunder.
17 The disability retirement annuity payment period shall
18 begin immediately following the expiration of the disability
19 benefit payments under clause (6) (5) of Section 15-152 and
20 shall be discontinued when (1) the physical or mental
21 impairment no longer prevents the participant from engaging
22 in any substantial gainful activity, (2) the participant dies
23 or (3) the participant elects to receive a retirement annuity
24 under Sections 15-135 and 15-136. If a person's disability
25 retirement annuity is discontinued under clause (1), all
26 rights and credits accrued in the system on the date that the
27 disability retirement annuity began shall be restored, and
28 the disability retirement annuity paid shall be considered as
29 disability payments under clause (6) (5) of Section 15-152.
30 (Source: P.A. 83-1440.)
31 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
32 Sec. 15-157. Employee Contributions.
33 (a) Each participating employee shall make contributions
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1 towards the retirement annuity of each payment of earnings
2 applicable to employment under this system on and after the
3 date of becoming a participant as follows: Prior to
4 September 1, 1949, 3 1/2% of earnings; from September 1, 1949
5 to August 31, 1955, 5%; from September 1, 1955 to August 31,
6 1969, 6%; from September 1, 1969, 6 1/2%. These
7 contributions are to be considered as normal contributions
8 for purposes of this Article.
9 Each participant who is a police officer or firefighter
10 shall make normal contributions of 8% of each payment of
11 earnings applicable to employment as a police officer or
12 firefighter under this system on or after September 1, 1981,
13 unless he or she files with the board within 60 days after
14 the effective date of this amendatory Act of 1991 or 60 days
15 after the board receives notice that he or she is employed as
16 a police officer or firefighter, whichever is later, a
17 written notice waiving the retirement formula provided by
18 Rule 4 of Section 15-136. This waiver shall be irrevocable.
19 If a participant had met the conditions set forth in Section
20 15-132.1 prior to the effective date of this amendatory Act
21 of 1991 but failed to make the additional normal
22 contributions required by this paragraph, he or she may elect
23 to pay the additional contributions plus compound interest at
24 the effective rate. If such payment is received by the
25 board, the service shall be considered as police officer
26 service in calculating the retirement annuity under Rule 4 of
27 Section 15-136.
28 (b) Starting September 1, 1969, each participating
29 employee shall make additional contributions of 1/2 of 1% of
30 earnings to finance a portion of the cost of the annual
31 increases in retirement annuity provided under Section
32 15-136.
33 (c) Each participating employee shall make survivors
34 insurance contributions of 1% of earnings applicable under
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1 this system on and after August 1, 1959. Contributions in
2 excess of $80 during any fiscal year beginning before August
3 31, 1969 and in excess of $120 during any fiscal year
4 thereafter until September 1, 1971 shall be considered as
5 additional contributions for purposes of this Article.
6 (d) If the board by board rule so permits and subject to
7 such conditions and limitations as may be specified in its
8 rules, a participant may make other additional contributions
9 of such percentage of earnings or amounts as the participant
10 shall elect in a written notice thereof received by the
11 board.
12 (e) That fraction of a participant's total accumulated
13 normal contributions, the numerator of which is equal to the
14 number of years of service in excess of that which is
15 required to qualify for the maximum retirement annuity, and
16 the denominator of which is equal to the total service of the
17 participant, shall be considered as accumulated additional
18 contributions. The determination of the applicable maximum
19 annuity and the adjustment in contributions required by this
20 provision shall be made as of the date of the participant's
21 retirement.
22 (f) Notwithstanding the foregoing, a participating
23 employee shall not be required to make contributions under
24 this Section after the date upon which continuance of such
25 contributions would otherwise cause his or her retirement
26 annuity to exceed the maximum retirement annuity as specified
27 in clause (1) of subsection (c) of Section 15-136.
28 (Source: P.A. 86-272; 86-1488.)
29 (40 ILCS 5/15-167.2) (from Ch. 108 1/2, par. 15-167.2)
30 Sec. 15-167.2. To issue bonds. To borrow money and, in
31 evidence of its obligation to repay the borrowing, to issue
32 bonds for the purpose of financing the cost of any project.
33 The bonds shall be authorized pursuant to a resolution to be
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1 adopted by the board setting forth all details in connection
2 with the bonds.
3 The principal amount of the outstanding bonds of the
4 board shall not at any time exceed $20,000,000 $10,000,000.
5 The bonds may be issued in one or more series, bear such
6 date or dates, become due at such time or times within 40
7 years, bear interest payable at such intervals and at such
8 rate or rates, which rates may be fixed or variable, be in
9 such denominations, be in such form, either coupon,
10 registered or book-entry, carry such conversion, registration
11 and exchange privileges, be subject to defeasance upon such
12 terms, have such rank or priority, be executed in such
13 manner, be payable in such medium of payment at such place or
14 places within or without the State of Illinois, make
15 provision for a corporate trustee within or without the State
16 of Illinois with respect to such bonds, prescribe the rights,
17 powers and duties thereof to be exercised for the benefit of
18 the board, the system and the protection of the bondholders,
19 provide for the holding in trust, investment and use of
20 moneys, funds and accounts held in connection therewith, be
21 subject to such terms of redemption with or without premium,
22 and be sold in such manner at private or public sale and at
23 such price, all as the board shall determine. Whenever bonds
24 are sold at a price less than par, they shall be sold at such
25 price and bear interest at such rate or rates that either the
26 true interest cost (yield) or the net interest rate, as may
27 be selected by the board, received upon the sale of such
28 bonds does not exceed the maximum interest rate permitted by
29 the Bond Authorization Act, as amended at the time of the
30 making of the contract.
31 Any bonds may be refunded or advance refunded upon such
32 terms as the board may determine for such term of years, not
33 exceeding 40 years, and in such principal amount, as may be
34 deemed necessary by the board. Any redemption premium
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1 payable upon the redemption of bonds may be payable from the
2 proceeds of refunding bonds issued for the purpose of
3 refunding such bonds, from any lawfully available source or
4 from both refunding bond proceeds and such other sources.
5 The bonds or refunding bonds shall be obligations of the
6 board payable from the income, interest and dividends derived
7 from investments of the board, all as may be designated in
8 the resolution of the board authorizing the issuance of the
9 bonds. The bonds shall be secured as provided in the
10 authorizing resolution, which may, notwithstanding any other
11 provision of this Code, include a specific pledge or
12 assignment of and lien on or security interest in the income,
13 interest and dividends derived from investments of the board
14 and a specific pledge or assignment of and lien on or
15 security interest in any funds, reserves or accounts
16 established or provided for by the resolution of the board
17 authorizing the issuance of the bonds. The bonds or refunding
18 bonds shall not be payable from any employer or employee
19 contributions derived from State appropriations nor
20 constitute obligations or indebtedness of the State of
21 Illinois or of any municipal corporation or other body
22 politic and corporate in the State.
23 The holder or holders of any bonds issued by the board
24 may bring suits at law or proceedings in equity to compel the
25 performance and observance by the board or any of its agents
26 or employees of any contract or covenant made with the
27 holders of the bonds, to compel the board or any of its
28 agents or employees to perform any duties required to be
29 performed for the benefit of the holders of the bonds by the
30 provisions of the resolution authorizing their issuance, and
31 to enjoin the board or any of its agents or employees from
32 taking any action in conflict with any such contract or
33 covenant.
34 Notwithstanding the provisions of Section 15-188 of this
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1 Code, if the board fails to pay the principal of, premium, if
2 any, or interest on any of the bonds as they become due, a
3 civil action to compel payment may be instituted in the
4 appropriate circuit court by the holder or holders of the
5 bonds upon which such default exists or by a trustee acting
6 on behalf of the holders.
7 No bonds may be issued under this Section until a copy of
8 the resolution of the board authorizing such bonds, certified
9 by the secretary of the board, has been filed with the
10 Governor of the State of Illinois.
11 "Bonds" means any instrument evidencing the obligation to
12 pay money, including without limitation bonds, notes,
13 installment or financing contracts, leases, certificates,
14 warrants, and any other evidences of indebtedness.
15 "Project" means the acquisition, construction, equipping,
16 improving, expanding and furnishing of any office building
17 for the use of the system, including any real estate or
18 interest in real estate necessary or useful in connection
19 therewith.
20 "Cost of any project" includes all capital costs of the
21 project, an amount for expenses of issuing any bonds to
22 finance such project, including underwriter's discount and
23 costs of bond insurance or other credit enhancement, an
24 amount necessary to provide for a reserve fund for the
25 payment of the principal of and interest on such bonds and an
26 amount to pay interest on such bonds for a period not to
27 exceed the greater of 2 years or a period ending 6 months
28 after the estimated date of completion of the project.
29 (Source: P.A. 86-1034.)
30 (40 ILCS 5/15-168.1 new)
31 Sec. 15-168.1. Testimony and the production of records.
32 The secretary of the Board shall have the power to issue
33 subpoenas to compel the attendance of witnesses and the
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1 production of documents and records, including law
2 enforcement records maintained by law enforcement agencies,
3 in conjunction with a disability claim, administrative review
4 proceedings, or felony forfeiture investigation. The fees of
5 witnesses for attendance and travel shall be the same as the
6 fees of witnesses before the circuit courts of this State and
7 shall be paid by the party seeking the subpoena. The Board
8 may apply to any circuit court in the State for an order
9 requiring compliance with a subpoena issued under this
10 Section. Subpoenas issued under this Section shall be
11 subject to applicable provisions of the Code of Civil
12 Procedure.
13 (40 ILCS 5/15-185) (from Ch. 108 1/2, par. 15-185)
14 Sec. 15-185. Annuities, etc. Exempt. The accumulated
15 employee and employer contributions shall be held in trust
16 for each participant and annuitant, and this trust shall be
17 treated as a spendthrift trust. Except as provided in this
18 Article, all cash, securities and other property of this
19 system, all annuities and other benefits payable under this
20 Article and all accumulated credits of participants and
21 annuitants in this system and the right of any person to
22 receive an annuity or other benefit under this Article, or a
23 refund of contributions, shall not be subject to judgment,
24 execution, garnishment, attachment, or other seizure by
25 process, in bankruptcy or otherwise, nor to sale, pledge,
26 mortgage or other alienation, and shall not be assignable.
27 The board, however, may deduct from the benefits, refunds and
28 credits payable to the participant, annuitant or beneficiary,
29 amounts owed by the participant or annuitant to the system.
30 No attempted sale, transfer or assignment of any benefit,
31 refund or credit shall prevent the right of the board to make
32 the deduction and offset authorized in this Section. Any
33 participant or annuitant may authorize the board to deduct
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1 from disability benefits or annuities, premiums due under any
2 group hospital-surgical insurance program which is sponsored
3 or approved by any employer; however, the deductions from
4 disability benefits may not begin prior to 6 months after the
5 disability occurs.
6 A person receiving an annuity or benefit may also
7 authorize withholding from such annuity or benefit for the
8 purposes enumerated in the State Salary and Annuity
9 Withholding Act.
10 This amendatory Act of 1989 is a clarification of
11 existing law and shall be applicable to every participant and
12 annuitant without regard to whether status as an employee
13 terminates before the effective date of this amendatory Act
14 of 1989.
15 (Source: P.A. 86-273; 86-1488.)
16 (40 ILCS 5/15-190) (from Ch. 108 1/2, par. 15-190)
17 Sec. 15-190. Persons under legal disability. If a person
18 is under legal disability when any right or privilege accrues
19 to him or her under this Article, a guardian may be appointed
20 pursuant to law, and may, on behalf of such person, claim and
21 exercise any such right or privilege with the same force and
22 effect as if the person had not been under a legal disability
23 and had claimed or exercised such right or privilege.
24 If a person's application for benefits or a physician's
25 certificate on file with the board shows that the person is
26 under a legal disability, and no guardian has been appointed
27 for his or her estate, the benefits payable under this
28 Article may be paid (1) directly to the person under legal
29 disability, or (2) to either parent of the person under legal
30 disability or any adult person with whom the person under
31 legal disability may at the time be living, provided only
32 that such parent or adult person to whom any amount is to be
33 paid shall have advised the board in writing that such amount
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1 will be held or used for the benefit of the person under
2 legal disability, or (3) to the trustee of any trust created
3 for the sole benefit of the person under legal disability
4 while that person is living, provided only that the trustee
5 of such trust to whom any amount is to be paid shall have
6 advised the board in writing that such amount will be held or
7 used for the benefit of the person under legal disability.
8 The system shall not be required to determine the validity of
9 the trust or any of the terms thereof. The representation of
10 the trustee that the trust meets the requirements of this
11 Section shall be conclusive as to the system. The written
12 receipt of the person under legal disability or the other
13 person who receives such payment shall be an absolute
14 discharge of the system's liability in respect of the amount
15 so paid.
16 (Source: P.A. 86-1488.)
17 (40 ILCS 5/15-191) (from Ch. 108 1/2, par. 15-191)
18 Sec. 15-191. Payment of benefits to minors. If any
19 benefits under this Article become payable to a minor, the
20 board may make payment (1) directly to the minor, (2) to any
21 person who has legally qualified and is acting as guardian of
22 the minor's person or property in any jurisdiction, or (3) to
23 either parent of the minor or to any adult person with whom
24 the minor may at the time be living, provided only that the
25 parent or other person to whom any amount is to be paid shall
26 have advised the board in writing that such amount will be
27 held or used for the benefit of the minor, or (4) to the
28 trustee of any trust created for the sole benefit of the
29 minor while that minor is living, provided only that the
30 trustee of such trust to whom any amount is to be paid shall
31 have advised the board in writing that such amount will be
32 held or used for the benefit of the minor. The system shall
33 not be required to determine the validity of the trust or any
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1 of the terms thereof. The representation of the trustee that
2 the trust meets the requirements of this Section shall be
3 conclusive as to the system. The written receipt of the
4 minor, parent, trustee, or other person who receives such
5 payment shall be an absolute discharge of the system's
6 liability in respect of the amount so paid.
7 (Source: P.A. 83-1440.)
8 (40 ILCS 5/16-127) (from Ch. 108 1/2, par. 16-127)
9 Sec. 16-127. Computation of creditable service.
10 (a) Each member shall receive regular credit for all
11 service as a teacher from the date membership begins, for
12 which satisfactory evidence is supplied and all contributions
13 have been paid.
14 (b) The following periods of service shall earn optional
15 credit and each member shall receive credit for all such
16 service for which satisfactory evidence is supplied and all
17 contributions have been paid as of the date specified:
18 (1) Prior service as a teacher.
19 (2) Service in a capacity essentially similar or
20 equivalent to that of a teacher, in the public common
21 schools in school districts in this State not included
22 within the provisions of this System, or of any other
23 State, territory, dependency or possession of the United
24 States, or in schools operated by or under the auspices
25 of the United States, or under the auspices of any agency
26 or department of any other State, and service during any
27 period of professional speech correction or special
28 education experience for a public agency within this
29 State or any other State, territory, dependency or
30 possession of the United States, and service prior to
31 February 1, 1951 as a recreation worker for the Illinois
32 Department of Public Safety, for a period not exceeding
33 the lesser of 2/5 of the total creditable service of the
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1 member or 10 years. The maximum service of 10 years
2 which is allowable under this paragraph shall be reduced
3 by the service credit which is validated by other
4 retirement systems under paragraph (i) of Section 15-113
5 and paragraph 1 of Section 17-133. Credit granted under
6 this paragraph may not be used in determination of a
7 retirement annuity or disability benefits unless the
8 member has at least 5 years of creditable service earned
9 subsequent to this employment with one or more of the
10 following systems: Teachers' Retirement System of the
11 State of Illinois, State Universities Retirement System,
12 and the Public School Teachers' Pension and Retirement
13 Fund of Chicago. Whenever such service credit exceeds
14 the maximum allowed for all purposes of this Article, the
15 first service rendered in point of time shall be
16 considered. The changes to this subdivision (b)(2) made
17 by Public Act 86-272 shall apply not only to persons who
18 on or after its effective date (August 23, 1989) are in
19 service as a teacher under the System, but also to
20 persons whose status as such a teacher terminated prior
21 to such effective date, whether or not such person is an
22 annuitant on that date.
23 (3) Any periods immediately following teaching
24 service, under this System or under Article 17, (or
25 immediately following service prior to February 1, 1951
26 as a recreation worker for the Illinois Department of
27 Public Safety) spent in active service with the military
28 forces of the United States; periods spent in educational
29 programs that prepare for return to teaching sponsored by
30 the federal government following such active military
31 service; if a teacher returns to teaching service within
32 one calendar year after discharge or after the completion
33 of the educational program, a further period, not
34 exceeding one calendar year, between time spent in
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1 military service or in such educational programs and the
2 return to employment as a teacher under this System; and
3 a period of up to 2 years of active military service not
4 immediately following employment as a teacher.
5 The changes to this Section and Section 16-128
6 relating to military service made by P.A. 87-794 shall
7 apply not only to persons who on or after its effective
8 date are in service as a teacher under the System, but
9 also to persons whose status as a teacher terminated
10 prior to that date, whether or not the person is an
11 annuitant on that date. In the case of an annuitant who
12 applies for credit allowable under this Section for a
13 period of military service that did not immediately
14 follow employment, and who has made the required
15 contributions for such credit, the annuity shall be
16 recalculated to include the additional service credit,
17 with the increase taking effect on the date the System
18 received written notification of the annuitant's intent
19 to purchase the credit, if payment of all the required
20 contributions is made within 60 days of such notice, or
21 else on the first annuity payment date following the date
22 of payment of the required contributions. In calculating
23 the automatic annual increase for an annuity that has
24 been recalculated under this Section, the increase
25 attributable to the additional service allowable under
26 P.A. 87-794 shall be included in the calculation of
27 automatic annual increases accruing after the effective
28 date of the recalculation.
29 Credit for military service shall be determined as
30 follows: if entry occurs during the months of July,
31 August, or September and the member was a teacher at the
32 end of the immediately preceding school term, credit
33 shall be granted from July 1 of the year in which he or
34 she entered service; if entry occurs during the school
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1 term and the teacher was in teaching service at the
2 beginning of the school term, credit shall be granted
3 from July 1 of such year. In all other cases where credit
4 for military service is allowed, credit shall be granted
5 from the date of entry into the service.
6 The total period of military service for which
7 credit is granted shall not exceed 5 years for any member
8 unless the service: (A) is validated before July 1,
9 1964, and (B) does not extend beyond July 1, 1963.
10 Credit for military service shall be granted under this
11 Section only if not more than 5 years of the military
12 service for which credit is granted under this Section is
13 used by the member to qualify for a military retirement
14 allotment from any branch of the armed forces of the
15 United States. The changes to this subdivision (b)(3)
16 made by Public Act 86-272 shall apply not only to persons
17 who on or after its effective date (August 23, 1989) are
18 in service as a teacher under the System, but also to
19 persons whose status as such a teacher terminated prior
20 to such effective date, whether or not such person is an
21 annuitant on that date.
22 (4) Any periods served as a member of the General
23 Assembly.
24 (5)(i) Any periods for which a teacher, as defined
25 in Section 16-106, is granted a leave of absence,
26 provided he or she returns to teaching service creditable
27 under this System or the State Universities Retirement
28 System following the leave; (ii) periods during which a
29 teacher is involuntarily laid off from teaching, provided
30 he or she returns to teaching following the lay-off;
31 (iii) periods prior to July 1, 1983 during which a
32 teacher ceased covered employment due to pregnancy,
33 provided that the teacher returned to teaching service
34 creditable under this System or the State Universities
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1 Retirement System following the pregnancy and submits
2 evidence satisfactory to the Board documenting that the
3 employment ceased due to pregnancy. However, total
4 credit under this paragraph (5) may not exceed 3 years.
5 Any qualified member or annuitant may apply for
6 credit under item (iii) of this paragraph (5) without
7 regard to whether service was terminated before the
8 effective date of this amendatory Act of 1995. In the
9 case of an annuitant who establishes credit under item
10 (iii), the annuity shall be recalculated to include the
11 additional service credit. The increase in annuity shall
12 take effect on the date the System receives written
13 notification of the annuitant's intent to purchase the
14 credit, if the required evidence is submitted and the
15 required contribution paid within 60 days of that
16 notification, otherwise on the first annuity payment date
17 following the System's receipt of the required evidence
18 and contribution. The increase in an annuity
19 recalculated under this provision shall be included in
20 the calculation of automatic annual increases in the
21 annuity accruing after the effective date of the
22 recalculation.
23 Optional credit may be purchased under this
24 subsection (b)(5) for periods during which a teacher has
25 been granted a leave of absence pursuant to Section 24-13
26 of the School Code. A teacher whose service under this
27 Article terminated prior to the effective date of P.A.
28 86-1488 shall be eligible to purchase such optional
29 credit. If a teacher who purchases this optional credit
30 is already receiving a retirement annuity under this
31 Article, the annuity shall be recalculated as if the
32 annuitant had applied for the leave of absence credit at
33 the time of retirement. The difference between the
34 entitled annuity and the actual annuity shall be credited
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1 to the purchase of the optional credit. The remainder of
2 the purchase cost of the optional credit shall be paid on
3 or before April 1, 1992.
4 The change in this paragraph made by Public Act
5 86-273 shall be applicable to teachers who retire after
6 June 1, 1989, as well as to teachers who are in service
7 on that date.
8 (6) Any days of unused and uncompensated
9 accumulated sick leave earned by a teacher. The service
10 credit granted under this paragraph shall be the ratio of
11 the number of unused and uncompensated accumulated sick
12 leave days to 170 days, subject to a maximum of one year
13 of service credit. Prior to the member's retirement,
14 each former employer shall certify to the System the
15 number of unused and uncompensated accumulated sick leave
16 days credited to the member at the time of termination of
17 service. The period of unused sick leave shall not be
18 considered in determining the effective date of
19 retirement. A member is not required to make
20 contributions in order to obtain service credit for
21 unused sick leave.
22 Credit for sick leave shall, at retirement, be
23 granted by the System for any retiring regional or
24 assistant regional superintendent of schools at the rate
25 of 6 days per year of creditable service or portion
26 thereof established while serving as such superintendent
27 or assistant superintendent.
28 (7) Periods prior to February 1, 1987 served as an
29 employee of the Illinois Mathematics and Science Academy
30 for which credit has not been terminated under Section
31 15-113.9 of this Code.
32 (8) Service as a substitute teacher for work
33 performed prior to July 1, 1990.
34 (9) Service as a part-time teacher for work
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1 performed prior to July 1, 1990.
2 (10) Up to 5 2 years of employment with Southern
3 Illinois University - Carbondale between January 1, 1959
4 and December 31, 1963 from September 1, 1959 to August
5 31, 1961, or with Governors State University from
6 September 1, 1972 to August 31, 1974, for which the
7 teacher has no credit under Article 15. To receive
8 credit under this item (10), a teacher must apply in
9 writing to the Board and pay the required contributions
10 before May 1, 1998 1993 and have at least 12 years of
11 service credit under this Article.
12 (c) The service credits specified in this Section shall
13 be granted only if: (1) such service credits are not used
14 for credit in any other statutory tax-supported public
15 employee retirement system other than the federal Social
16 Security program; and (2) the member makes the required
17 contributions as specified in Section 16-128. The service
18 credit shall be effective as of the date the required
19 contributions are completed.
20 Any service credits granted under this Section shall
21 terminate upon cessation of membership for any cause.
22 Credit may not be granted under this Section covering any
23 period for which an age retirement or disability retirement
24 allowance has been paid.
25 (Source: P.A. 88-45; 89-430, eff. 12-15-95.)
26 (40 ILCS 5/16-140) (from Ch. 108 1/2, par. 16-140)
27 Sec. 16-140. Survivors' benefits - definitions.
28 (a) For the purpose of Sections 16-138 through 16-143.2,
29 the following terms shall have the following meanings, unless
30 the context otherwise requires:
31 (1) "Average salary": the average salary for the highest
32 4 consecutive years within the last 10 years of creditable
33 service immediately preceding date of death or retirement,
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1 whichever is applicable, or the average salary for the total
2 creditable service if service is less than 4 years.
3 (2) "Member": any teacher included in the membership of
4 the system. However, a teacher who becomes an annuitant of
5 the system or a teacher whose services terminate after 20
6 years of service from any cause other than retirement is
7 considered a member, subject to the conditions and
8 limitations stated in this Article.
9 (3) "Dependent beneficiary": (A) a surviving spouse of a
10 member or annuitant who was married to the member or
11 annuitant for the 12 month period immediately preceding and
12 on the date of death of such member or annuitant, except
13 where a child is born of such marriage, in which case the
14 qualifying period shall not be applicable; (A-1) a surviving
15 spouse of a member or annuitant who (i) was married to the
16 member or annuitant on the date of the member or annuitant's
17 death, (ii) was married to the member or annuitant for a
18 period of at least 12 months (but not necessarily the 12
19 months immediately preceding the member or annuitant's
20 death), (iii) first applied for a survivor's benefit before
21 April January 1, 1997 1994, and (iv) has not received a
22 benefit under subsection (a) of Section 16-141 or paragraph
23 (1) of Section 16-142; (B) an eligible child of a member or
24 annuitant; and (C) a dependent parent.
25 Unless otherwise designated by the member, eligibility
26 for benefits shall be in the order named, except that a
27 dependent parent shall be eligible only if there is no other
28 dependent beneficiary. Any benefit to be received by or paid
29 to a dependent beneficiary to be determined under this
30 paragraph as provided in Sections 16-141 and 16-142 may be
31 received by or paid to a trust established for such dependent
32 beneficiary if such dependent beneficiary is living at the
33 time such benefit would be received by or paid to such trust.
34 (4) "Eligible child": an unmarried natural or adopted
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1 child of the member or annuitant under age 18. An unmarried
2 natural or adopted child, regardless of age, who is dependent
3 by reason of a physical or mental disability, except any such
4 child receiving benefits under Article III of the Illinois
5 Public Aid Code, is eligible for so long as such physical or
6 mental disability continues. An adopted child, however, is
7 eligible only if the proceedings for adoption were finalized
8 while the child was a minor.
9 For purposes of this subsection, "disability" means an
10 inability to engage in any substantial gainful activity by
11 reason of any medically determinable physical or mental
12 impairment which can be expected to result in death or which
13 has lasted or can be expected to last for a continuous period
14 of not less than 12 months.
15 (5) "Dependent parent": a parent who was receiving at
16 least 1/2 of his or her support from a member or annuitant
17 for the 12-month period immediately preceding and on the date
18 of such member's or annuitant's death, provided however, that
19 such dependent status terminates upon a member's acceptance
20 of a refund for survivor benefit contributions as provided
21 under Section 16-142.
22 (6) "Non-dependent beneficiary": any person,
23 organization or other entity designated by the member who
24 does not qualify as a dependent beneficiary.
25 (7) "In service": the condition of a member being in
26 receipt of salary as a teacher at any time within 12 months
27 immediately before his or her death, being on leave of
28 absence for which the member, upon return to teaching, would
29 be eligible to purchase service credit under subsection
30 (b)(5) of Section 16-127, or being in receipt of a disability
31 or occupational disability benefit. This term does not
32 include any annuitant or member who previously accepted a
33 refund of survivor benefit contributions under paragraph (1)
34 of Section 16-142 unless the conditions specified in
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1 subsection (b) of Section 16-143.2 are met.
2 (b) The change to this Section made by this amendatory
3 Act of 1997 applies without regard to whether the deceased
4 member or annuitant was in service on or after the effective
5 date of this amendatory Act.
6 (Source: P.A. 89-430, eff. 12-15-95.)
7 (40 ILCS 5/18-112) (from Ch. 108 1/2, par. 18-112)
8 Sec. 18-112. Service. "Service": The period beginning
9 on the day a person first became a judge, whether prior or
10 subsequent to the effective date, and ending on the date
11 under consideration, excluding all intervening periods during
12 which he or she was not a judge following resignation or
13 expiration of any term of election or appointment.
14 Service also includes the following:
15 (a) Any period prior to January 1, 1964 during which a
16 judge served as a justice of the peace, police magistrate or
17 master in chancery, or as a civil referee, commissioner or
18 trial assistant to the chief judge in the Municipal Court of
19 Chicago, or performed judicial duties as an assistant to the
20 judge of the Probate Court of Cook County. A judge shall be
21 entitled to credit for all or as much as the judge may desire
22 of such service, not exceeding 8 years, upon payment of the
23 participant's contribution covering such service at the
24 contribution rates in effect on July 1, 1969, together with
25 interest at 4% per annum compounded annually, from the dates
26 the service was rendered to the date of payment, provided
27 credit for such service had not been granted in any public
28 pension fund or retirement system in the State. The required
29 contributions shall be based upon the rate of salary in
30 effect for the judge on the date he or she entered the system
31 or on January 1, 1964, whichever is later.
32 (b) Service rendered after January 1, 1964, as a
33 holdover magistrate or master in chancery of the Circuit
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1 Court. A judge shall be entitled to credit for any period of
2 such service, not exceeding a total of 8 years, together with
3 the period of service taken into account in paragraph (a).
4 Service credit under this paragraph is subject to the same
5 contribution requirements and other limitations that are
6 prescribed for service credit under paragraph (a).
7 (c) Any period that a participant served as a member of
8 the General Assembly, subject to the following conditions:
9 (1) He or she has been a participant in this system for
10 at least 4 years and has contributed to the system for
11 service rendered as a member of the General Assembly
12 subsequent to November 1, 1941, at the contribution rates in
13 effect for a judge on the date of becoming a participant,
14 including interest at 3% per annum compounded annually from
15 the date such service was rendered to the date of payment,
16 based on the salary in effect during such period of service;
17 and
18 (2) The participant is not entitled to credit for such
19 service in any other public retirement system in the State.
20 (d) Any period a participant served as a judge or
21 commissioner of the Court of Claims of this State after
22 November 1, 1941, provided he or she contributes to the
23 system at the contribution rates in effect on the date of
24 becoming a participant, based on salary received during such
25 service, including interest at 3% per annum compounded
26 annually from the date such service was rendered to the date
27 of payment.
28 (e) Any period that a participant served as State's
29 Attorney or Public Defender of any county of this State,
30 subject to the following conditions: (1) such service was not
31 credited under any public pension fund or retirement system;
32 (2) the maximum service to be credited in this system shall
33 be 8 years; (3) the participant must have at least 6 years of
34 service as a judge and as a participant of this system; and
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1 (4) the participant has made contributions to the system for
2 such service at the contribution rates in effect on the date
3 of becoming a participant in this system based upon the
4 salary of the judge on such date, including interest at 4%
5 per annum compounded annually from such date to the date of
6 payment.
7 A judge who terminated service before January 26, 1988
8 and whose retirement annuity began after January 1, 1988 may
9 establish credit for service as a Public Defender in
10 accordance with the other provisions of this subsection by
11 making application and paying the required contributions to
12 the Board not later than 30 days after August 23, 1989. In
13 such cases, the Board shall recalculate the retirement
14 annuity, effective on the first day of the next calendar
15 month beginning at least 30 days after the application is
16 received.
17 (f) Except as otherwise provided under subsection (g),
18 any period as a participating policeman, employee or teacher
19 under Article 5, 14 or 16 of this Code, subject to the
20 following conditions: (1) the credits accrued under Article
21 5, 14 or 16 have been transferred to this system; and (2) the
22 participant has contributed to the system an amount equal to
23 (A) contributions at the rate in effect for participants at
24 the date of membership in this system based upon the salary
25 of the judge on such date, (B) the employer's share of the
26 normal cost under this system for each year that credit is
27 being established, based on the salary in effect at the date
28 of membership in this system, and (C) interest at 6% per
29 annum, compounded annually, from the date of membership to
30 the date of payment; less (D) the amount transferred on
31 behalf of the participant from Article 5, 14 or 16.
32 (g) Any period that a participant served as the
33 Administrative Director of the Circuit Court of Cook County,
34 as Executive Director of the Home Rule Commission, as
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1 assistant corporation counsel in the Chicago Law Department,
2 or as an employee of the Cook County Treasurer, or as the
3 Legal Adviser of the State Board of Education, subject to the
4 following conditions: (1) the maximum amount of such service
5 which may be credited is 10 years (11 years in the case of
6 service as the Legal Adviser of the State Board of
7 Education); (2) in order to qualify for such credit in this
8 system, a judge must have at least 6 years of service as a
9 judge and participant of this system; (3) the last 6 years of
10 service credited in this system shall be as a judge and a
11 participant in this system; (4) credits accrued to the
12 participant under any other public pension fund or public
13 retirement system in the State, if any, by reason of the
14 service to be established under this paragraph (g) has been
15 transferred to this system; (4.5) in the case of service as
16 the Legal Adviser of the State Board of Education,
17 application is made in writing to the board of the system
18 before July 1, 1998; and (5) the participant has contributed
19 to this system the amount, if any, by which the amount
20 transferred pursuant to subdivision (4) of this paragraph, if
21 any, is less than the amount which the participant would have
22 contributed to the system during the period of time being
23 counted as service under this paragraph had the participant
24 been a judge participating in this system during that time,
25 based on the rate of contribution in effect and the salary
26 earned by the participant on the date he or she became a
27 participant, with interest accruing on such deficiency at a
28 rate of 5% per annum from the date he or she became a
29 participant through the date on which such deficiency is
30 paid.
31 (h) Any period that a participant served as a full-time
32 attorney employed by the Chicago Transit Authority created by
33 the Metropolitan Transit Authority Act, subject to the
34 following conditions: (1) any credit received for such
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1 service in the pension fund established under Section 22-101
2 has been terminated; (2) the maximum amount of such service
3 to be credited in this system shall be 10 years; (3) the
4 participant must have at least 6 years of service as a judge
5 and as a participant of this system; and (4) the participant
6 has made contributions to the system for such service at the
7 contribution rates in effect on the date of becoming a
8 participant in this system based upon the salary of the judge
9 on such date, including interest at 5% per annum compounded
10 annually from such date to the date of payment.
11 (i) Any period during which a participant received
12 temporary total disability benefit payments, as provided in
13 Section 18-126.1.
14 Service during a fraction of a month shall be considered
15 a month of service, but no more than one month of service
16 shall be credited for all service during any calendar month.
17 (Source: P.A. 86-272; 86-273; 86-1028; 87-1265.)
18 (40 ILCS 5/15-144 rep.)
19 Section 15. The Illinois Pension Code is amended by
20 repealing Section 15-144.
21 Section 90. The State Mandates Act is amended by adding
22 Section 8.21 as follows:
23 (30 ILCS 805/8.21 new)
24 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
25 and 8 of this Act, no reimbursement by the State is required
26 for the implementation of any mandate created by this
27 amendatory Act of 1997.
28 Section 99. Effective date. This Act takes effect upon
29 becoming law.".