State of Illinois
91st General Assembly
Legislation

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91_HB4194

 
                                               LRB9110333EGfg

 1        AN ACT in relation to public employee benefits.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  State Employees Group Insurance Act of
 5    1971 is amended by changing Section 6.10 as follows:

 6        (5 ILCS 375/6.10)
 7        Sec.  6.10.    Contributions  to  the  Community  College
 8    Health Insurance Security Fund.
 9        (a)  Beginning January 1, 1999, every active  contributor
10    of  the  State  Universities  Retirement  System (established
11    under Article 15 of the Illinois Pension Code) who (1)  is  a
12    full-time  employee  of  a  community college district (other
13    than a community college district subject to Article  VII  of
14    the  Public  Community  College  Act)  or  an  association of
15    community college boards  and  (2)  is  not  an  employee  as
16    defined  in  Section  3  of this Act shall make contributions
17    toward the cost of community college annuitant  and  survivor
18    health benefits at the rate of 0.50% of salary.
19        These contributions shall be deducted by the employer and
20    paid  to  the State Universities Retirement System as service
21    agent for the Department of Central Management Services.  The
22    System  may  use  the  same  processes  for  collecting   the
23    contributions  required  by  this  subsection that it uses to
24    collect the contributions received from those employees under
25    Section 15-157 of the Illinois Pension Code.  An employer may
26    agree to pick up or pay the contributions required under this
27    subsection on behalf  of  the  employee;  such  contributions
28    shall be deemed to have been paid by the employee.
29        A  person  required  to  make  contributions  under  this
30    subsection  (a)  who  purchases optional service credit under
31    Article 15 of the Illinois Pension Code  must  also  pay  the
 
                            -2-                LRB9110333EGfg
 1    contribution  required under this subsection (a) with respect
 2    to that optional service credit.  This contribution  must  be
 3    received by the System before that optional service credit is
 4    granted.
 5        The  State  Universities Retirement System shall promptly
 6    deposit all moneys collected under this subsection  (a)  into
 7    the  Community College Health Insurance Security Fund created
 8    in Section 6.9 of this Act.  The moneys collected under  this
 9    Section  shall  be  used  only for the purposes authorized in
10    Section 6.9 of this Act and shall not  be  considered  to  be
11    assets   of   the   State   Universities  Retirement  System.
12    Contributions made under this Section are not transferable to
13    other  pension  funds  or  retirement  systems  and  are  not
14    refundable upon termination of service.
15        (b)  Beginning January 1, 1999, every  community  college
16    district  (other than a community college district subject to
17    Article  VII  of  the  Public  Community  College   Act)   or
18    association  of  community college boards that is an employer
19    under  the  State  Universities   Retirement   System   shall
20    contribute  toward  the  cost of the community college health
21    benefits provided under Section 6.9 of  this  Act  an  amount
22    equal  to 0.50% of the salary paid to its full-time employees
23    who participate in the State Universities  Retirement  System
24    and are not members as defined in Section 3 of this Act.
25        These  contributions shall be paid by the employer to the
26    State Universities Retirement System as service agent for the
27    Department of Central Management Services.   The  System  may
28    use  the  same  processes  for  collecting  the contributions
29    required by this subsection  that  it  uses  to  collect  the
30    contributions  received  from  those  employers under Section
31    15-155 of the Illinois Pension Code.
32        The State Universities Retirement System  shall  promptly
33    deposit  all  moneys collected under this subsection (b) into
34    the Community College Health Insurance Security Fund  created
 
                            -3-                LRB9110333EGfg
 1    in  Section 6.9 of this Act.  The moneys collected under this
 2    Section shall be used only for  the  purposes  authorized  in
 3    Section  6.9  of  this  Act and shall not be considered to be
 4    assets  of  the   State   Universities   Retirement   System.
 5    Contributions made under this Section are not transferable to
 6    other  pension  funds  or  retirement  systems  and  are  not
 7    refundable upon termination of service.
 8        (c)  On  or before November 15 of each year, the Board of
 9    Trustees of the State Universities  Retirement  System  shall
10    certify  to  the Governor, the Director of Central Management
11    Services, and the State Comptroller its estimate of the total
12    amount of contributions to be paid under  subsection  (a)  of
13    this  Section  for  the  next fiscal year.  The certification
14    shall include a  detailed  explanation  of  the  methods  and
15    information  that  the  Board  relied  upon  in preparing its
16    estimate.  As soon as possible after the  effective  date  of
17    this  Section, the Board shall submit its estimate for fiscal
18    year 1999.
19        (d)  Beginning in fiscal year 1999, on the first  day  of
20    each  month,  or  as soon thereafter as may be practical, the
21    State Treasurer and the State Comptroller shall transfer from
22    the General Revenue Fund  to  the  Community  College  Health
23    Insurance   Security   Fund   1/12   of   the  annual  amount
24    appropriated for that fiscal year to  the  State  Comptroller
25    for  deposit  into  the  Community  College  Health Insurance
26    Security Fund under Section 1.4 of the  State  Pension  Funds
27    Continuing Appropriation Act.
28        (e)  Except  where  otherwise  specified in this Section,
29    the definitions that apply to  Article  15  of  the  Illinois
30    Pension Code apply to this Section.
31    (Source: P.A. 90-497, eff. 8-18-97.)

32        Section  10.   The  Illinois  Pension  Code is amended by
33    changing Sections 15-107, 15-111, 15-112,  15-134.5,  15-136,
 
                            -4-                LRB9110333EGfg
 1    15-136.2, 15-136.3, 15-136.4, 15-139, 15-140, 15-141, 15-142,
 2    15-144,  15-145,  15-146, 15-148, 15-153.3, 15-154, 15-158.2,
 3    15-181,  20-121,  20-123,  20-124,  20-125,  and  20-131   as
 4    follows:

 5        (40 ILCS 5/15-107) (from Ch. 108 1/2, par. 15-107)
 6        Sec. 15-107.  Employee.
 7        (a)  "Employee"  means  any  member  of  the educational,
 8    administrative, secretarial, clerical, mechanical,  labor  or
 9    other  staff of an employer whose employment is permanent and
10    continuous or who is employed in a position in which services
11    are expected to be rendered on  a  continuous  basis  for  at
12    least  4  months or one academic term, whichever is less, who
13    (A) receives payment  for  personal  services  on  a  warrant
14    issued pursuant to a payroll voucher certified by an employer
15    and  drawn  by the State Comptroller upon the State Treasurer
16    or by an employer upon trust, federal or other funds, or  (B)
17    is  on  a  leave of absence without pay.  Employment which is
18    irregular, intermittent or temporary shall not be  considered
19    continuous for purposes of this paragraph.
20        However, a person is not an "employee" if he or she:
21             (1)  is   a   student   enrolled  in  and  regularly
22        attending classes in a college or university which is  an
23        employer,  and  is  employed on a temporary basis at less
24        than full time;
25             (2)  is currently receiving a retirement annuity  or
26        a  disability  retirement  annuity under Section 15-153.2
27        from this System;
28             (3)  is on a military leave of absence;
29             (4)  is eligible to participate in the Federal Civil
30        Service  Retirement  System  and  is   currently   making
31        contributions  to that system based upon earnings paid by
32        an employer;
33             (5)  is on leave of absence  without  pay  for  more
 
                            -5-                LRB9110333EGfg
 1        than   60   days  immediately  following  termination  of
 2        disability benefits under this Article;
 3             (6)  is hired  after  June  30,  1979  as  a  public
 4        service  employment program participant under the Federal
 5        Comprehensive Employment and Training  Act  and  receives
 6        earnings  in  whole  or in part from funds provided under
 7        that Act;
 8             (7)  is employed on or after July 1, 1991 to perform
 9        services that are excluded by  subdivision  (a)(7)(f)  or
10        (a)(19) of Section 210 of the federal Social Security Act
11        from  the  definition of employment given in that Section
12        (42 U.S.C. 410); or
13             (8)  participates  in  an   optional   program   for
14        part-time workers under Section 15-158.1.
15        (b)  Any  employer  may,  by filing a written notice with
16    the board, exclude from  the  definition  of  "employee"  all
17    persons  employed  pursuant  to  a  federally funded contract
18    entered into after July  1,  1982  with  a  federal  military
19    department  in  a  program  providing  training  in  military
20    courses  to  federal  military  personnel  on a military site
21    owned by the United States Government, if this  exclusion  is
22    not  prohibited  by  the federally funded contract or federal
23    laws or rules governing the administration of the contract.
24        (c)  Any person appointed by the Governor under the Civil
25    Administrative Code of the State is an employee, if he or she
26    is a participant in this system on the effective date of  the
27    appointment.
28        (d)  A  participant on lay-off status under civil service
29    rules is considered an employee for not more  than  120  days
30    from the date of the lay-off.
31        (e)  A  participant  is considered an employee during (1)
32    the first 60 days of disability leave, (2) the period, not to
33    exceed  one  year,  in  which  his  or  her  eligibility  for
34    disability benefits is  being  considered  by  the  board  or
 
                            -6-                LRB9110333EGfg
 1    reviewed by the courts, and (3) the period he or she receives
 2    disability  benefits  under the provisions of Section 15-152,
 3    workers' compensation or occupational  disease  benefits,  or
 4    disability income under an insurance contract financed wholly
 5    or partially by the employer.
 6        (f)  Absences  without  pay,  other than formal leaves of
 7    absence, of less than 30 calendar days, are not considered as
 8    an interruption of a person's status as an employee.  If such
 9    absences during any period of 12 months exceed 30 work  days,
10    the   employee   status   of  the  person  is  considered  as
11    interrupted as of the 31st work day.
12        (g)  A staff member whose  employment  contract  requires
13    services  during  an  academic  term  is  to be considered an
14    employee during the summer and other vacation periods, unless
15    he or she declines an employment contract for the  succeeding
16    academic  term  or  his or her employment status is otherwise
17    terminated, and he or she receives no earnings  during  these
18    periods.
19        (h)  An  individual  who  was  a  participating  employee
20    employed   in  the  fire  department  of  the  University  of
21    Illinois's Champaign-Urbana campus immediately prior  to  the
22    elimination of that fire department and who immediately after
23    the  elimination  of  that fire department became employed by
24    the fire department of the City of  Urbana  or  the  City  of
25    Champaign  shall continue to be considered as an employee for
26    purposes of this  Article  for  so  long  as  the  individual
27    remains  employed  as  a firefighter by the City of Urbana or
28    the City of Champaign.  The  individual  shall  cease  to  be
29    considered  an  employee  under  this subsection (h) upon the
30    first  termination  of  the  individual's  employment  as   a
31    firefighter by the City of Urbana or the City of Champaign.
32        (i)  An  individual  who is employed on a full-time basis
33    as an officer or employee of a statewide teacher organization
34    that serves System participants or an officer of  a  national
 
                            -7-                LRB9110333EGfg
 1    teacher  organization  that  serves  System  participants may
 2    participate in the System and shall be  deemed  an  employee,
 3    provided  that  (1)  the  individual  has  previously  earned
 4    creditable  service  under  this  Article, (2) the individual
 5    files with the System an irrevocable  election  to  become  a
 6    participant,  and  (3) the individual does not receive credit
 7    for that employment under any other Article of this Code.  An
 8    employee under this subsection (i) is responsible for  paying
 9    to  the  System  both (A) employee contributions based on the
10    actual compensation received for  service  with  the  teacher
11    organization  and  (B)  employer  contributions  equal to the
12    normal costs (as defined in Section  15-155)  resulting  from
13    that  service;  all or any part of these contributions may be
14    paid on the employee's behalf or picked up for  tax  purposes
15    (if   authorized   under   federal   law)   by   the  teacher
16    organization.
17        A person who is an employee as defined in this subsection
18    (i) may establish service credit for similar employment prior
19    to becoming an employee under this subsection  by  paying  to
20    the System for that employment the contributions specified in
21    this subsection, plus interest at the effective rate from the
22    date  of  service  to  the  date of payment.  However, credit
23    shall not be granted under this subsection for any such prior
24    employment for which the applicant received credit under  any
25    other  provision  of this Code, or during which the applicant
26    was on a leave of absence under Section 15-113.2.
27    (Source: P.A. 89-430, eff. 12-15-95;  90-448,  eff.  8-16-97;
28    90-576, eff. 3-31-98; 90-766, eff. 8-14-98.)

29        (40 ILCS 5/15-111) (from Ch. 108 1/2, par. 15-111)
30        Sec.  15-111.   Earnings.  "Earnings": An amount paid for
31    personal services equal to the sum of the basic  compensation
32    plus  extra  compensation  for  summer  teaching, overtime or
33    other extra service.   For  periods  for  which  an  employee
 
                            -8-                LRB9110333EGfg
 1    receives  service  credit  under  subsection  (c)  of Section
 2    15-113.1 or Section 15-113.2, earnings are equal to the basic
 3    compensation on which contributions are paid by the  employee
 4    during  such  periods.   Compensation for employment which is
 5    irregular, intermittent and temporary shall not be considered
 6    earnings, unless the participant is also  receiving  earnings
 7    from the employer as an employee under Section 15-107.
 8        With  respect to transition pay paid by the University of
 9    Illinois  to  a  person  who  was  a  participating  employee
10    employed  in  the  fire  department  of  the  University   of
11    Illinois's  Champaign-Urbana  campus immediately prior to the
12    elimination of that fire department:
13             (1)  "Earnings" includes transition pay paid to  the
14        employee   on   or  after  the  effective  date  of  this
15        amendatory Act of the 91st General Assembly.
16             (2)  "Earnings" includes transition pay paid to  the
17        employee before the effective date of this amendatory Act
18        of  the  91st  General  Assembly  only  if  (i)  employee
19        contributions  under  Section  15-157  have been withheld
20        from that transition pay or (ii) the employee pays to the
21        System before January  1,  2001  an  amount  representing
22        employee  contributions  under  Section  15-157  on  that
23        transition  pay.   Employee contributions under item (ii)
24        may be paid in a lump sum, by withholding from additional
25        transition pay accruing before January 1, 2001, or in any
26        other manner approved by the System.  Upon payment of the
27        employee   contributions   on   transition    pay,    the
28        corresponding employer contributions become an obligation
29        of the State.
30    (Source: P.A. 87-8.)

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
 
                            -9-                LRB9110333EGfg
 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
 
                            -10-               LRB9110333EGfg
 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: severance or separation
19    pay, 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. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)

29        (40 ILCS 5/15-134.5)
30        Sec. 15-134.5.  Retirement program elections.
31        (a)  All participating employees are  participants  under
32    the traditional benefit package prior to January 1, 1998.
33        Effective  as  of  the  date  that an employer elects, as
 
                            -11-               LRB9110333EGfg
 1    described in Section 15-158.2, to offer to its employees  the
 2    portable   benefit  package  and  the  self-managed  plan  as
 3    alternatives to the traditional benefit package, each of that
 4    employer's eligible employees (as defined in subsection  (b))
 5    shall  be  given the choice to elect which retirement program
 6    he or she wishes  to  participate  in  with  respect  to  all
 7    periods  of  covered  employment  occurring  on and after the
 8    effective date of the employee's  election.   The  retirement
 9    program election made by an eligible employee must be made in
10    writing,  in  the manner prescribed by the System, and within
11    the time period described in subsection (d) or (d-1).
12        The employee election authorized by  this  Section  is  a
13    one-time,  irrevocable  election.   If an employee terminates
14    employment after making  the  election  provided  under  this
15    subsection (a), then upon his or her subsequent re-employment
16    with  an  employer  the original election shall automatically
17    apply to him or her, provided that the  employer  is  then  a
18    participating employer as described in Section 15-158.2.
19        An  eligible  employee  who  fails  to make this election
20    shall, by default, participate  in  the  traditional  benefit
21    package.
22        (b)  "Eligible employee" means an employee (as defined in
23    Section  15-107)  who is either a currently eligible employee
24    or a newly eligible employee.  For purposes of this  Section,
25    a  "currently  eligible  employee"  is  an  employee  who  is
26    employed  by  an  employer on the effective date on which the
27    employer offers to its employees the portable benefit package
28    and the self-managed plan as alternatives to the  traditional
29    benefit  package.  A "newly eligible employee" is an employee
30    who first becomes employed by an employer after the effective
31    date on which the employer offers its employees the  portable
32    benefit  package and the self-managed plan as alternatives to
33    the traditional benefit package. A  newly  eligible  employee
34    participates  in  the traditional benefit package until he or
 
                            -12-               LRB9110333EGfg
 1    she makes an election to participate in the portable  benefit
 2    package  or  the  self-managed plan.  If an employee does not
 3    elect to participate in the portable benefit package  or  the
 4    self-managed plan, he or she shall continue to participate in
 5    the traditional benefit package by default.
 6        (c)  An  eligible  employee  who at the time he or she is
 7    first eligible to make the election described  in  subsection
 8    (a) does not have sufficient age and service to qualify for a
 9    retirement   annuity   under  Section  15-135  may  elect  to
10    participate in the traditional benefit package, the  portable
11    benefit  package,  or  the  self-managed  plan.   An eligible
12    employee who has sufficient age and service to qualify for  a
13    retirement annuity under Section 15-135 at the time he or she
14    is   first   eligible  to  make  the  election  described  in
15    subsection (a) may elect to participate  in  the  traditional
16    benefit  package or the portable benefit package, but may not
17    elect to participate in the self-managed plan.
18        (d)  A  currently  eligible  employee  must   make   this
19    election  within  one  year  after  the effective date of the
20    employer's adoption of the self-managed plan.
21        A newly eligible employee must make this election  within
22    one  year  after  the  date  on which the System receives the
23    report of status certification  from  the  employer  60  days
24    after  becoming  an eligible employee.  If an employee elects
25    to  participate  in  the  self-managed  plan,   no   employer
26    contributions shall be remitted to the self-managed plan when
27    the  employee's  account  balance transfer is made.  Employer
28    contributions to the self-managed plan shall commence  as  of
29    the  first  pay  period that begins after the System receives
30    the employee's election.
31        (d-1)  A  newly  eligible  employee  who,  prior  to  the
32    effective date of this amendatory Act  of  the  91st  General
33    Assembly,  fails  to  make  the  election  within  the period
34    provided under subsection  (d) and participates by default in
 
                            -13-               LRB9110333EGfg
 1    the traditional benefit package may make a late  election  to
 2    participate   in   the   portable   benefit  package  or  the
 3    self-managed plan instead of the traditional benefit  package
 4    at  any time within one year after the effective date of this
 5    amendatory Act of the 91st  General  Assembly.  The  employer
 6    shall  not  remit  contributions to the System on behalf of a
 7    newly eligible employee until the earlier of  the  expiration
 8    of the employee's 60-day election period or the date on which
 9    the  employee  submits  a  properly completed election to the
10    employer or to the System.
11        (e)  If a  currently  an  eligible  employee  elects  the
12    portable  benefit  package,  that  election  shall not become
13    effective until the one-year anniversary of the date on which
14    the election is filed with the System, provided the  employee
15    remains  continuously employed by the employer throughout the
16    one-year waiting period, and any benefits payable  to  or  on
17    account  of  the employee before such one-year waiting period
18    has ended  shall  not  be  determined  under  the  provisions
19    applicable  to the portable benefit package but shall instead
20    be determined in  accordance  with  the  traditional  benefit
21    package.  If a currently an eligible employee who has elected
22    the portable benefit package terminates employment covered by
23    the System before the one-year waiting period has ended, then
24    no  benefits  shall  be determined under the portable benefit
25    package provisions while he or she is inactive in the  System
26    and upon re-employment with an employer covered by the System
27    he  or  she  shall begin a new one-year waiting period before
28    the  provisions  of  the  portable  benefit  package   become
29    effective.
30        (f)  An  eligible employee shall be provided with written
31    information  prepared  or  prescribed  by  the  System  which
32    describes the employee's  retirement  program  choices.   The
33    eligible  employee shall be offered an opportunity to receive
34    counseling from  the  System  prior  to  making  his  or  her
 
                            -14-               LRB9110333EGfg
 1    election.    This   counseling   may  consist  of  videotaped
 2    materials, group presentations, individual consultation  with
 3    an  employee  or  authorized  representative of the System in
 4    person or by telephone or  other  electronic  means,  or  any
 5    combination of these methods.
 6    (Source: P.A. 90-766, eff. 8-14-98.)".

 7        (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
 8        Sec.   15-136.    Retirement  annuities  -  Amount.   The
 9    provisions  of  this  Section  15-136  apply  only  to  those
10    participants who are participating in the traditional benefit
11    package or the portable benefit package and do not  apply  to
12    participants who are participating in the self-managed plan.
13        (a)  The  amount  of  a participant's retirement annuity,
14    expressed in the form of  a  single-life  annuity,  shall  be
15    determined  by whichever of the following rules is applicable
16    and provides the largest annuity:
17        Rule 1:  The retirement annuity shall be 1.67%  of  final
18    rate  of  earnings for each of the first 10 years of service,
19    1.90% for each of the next 10 years  of  service,  2.10%  for
20    each  year  of  service in excess of 20 but not exceeding 30,
21    and 2.30% for each year in excess of 30; or for  persons  who
22    retire on or after January 1, 1998, 2.2% of the final rate of
23    earnings for each year of service.
24        Rule  2:  The  retirement annuity shall be the sum of the
25    following,  determined   from   amounts   credited   to   the
26    participant  in  accordance with the actuarial tables and the
27    prescribed rate  of  interest  in  effect  at  the  time  the
28    retirement annuity begins:
29             (i)  the  normal annuity which can be provided on an
30        actuarially equivalent basis, by the  accumulated  normal
31        contributions as of the date the annuity begins; and
32             (ii)  an  annuity  from employer contributions of an
33        amount  equal  to  that  which  can  be  provided  on  an
 
                            -15-               LRB9110333EGfg
 1        actuarially equivalent basis from the accumulated  normal
 2        contributions  made  by  the  participant  under  Section
 3        15-113.6   and   Section   15-113.7   and   the  employee
 4        contribution made under Section 15-136.2; and
 5             (iii)  an annuity from employer contributions of  an
 6        amount  equal  to  that  which  can  be  provided  on  an
 7        actuarially  equivalent  basis  from  plus  1.4 times all
 8        other  accumulated  normal  contributions  made  by   the
 9        participant  other  than contributions made under Section
10        15-113.6, 15-113.7, or 15-136.2 and multiplied by 1.4.
11    The employee contribution made under Section  15-136.2  shall
12    be treated as a normal contribution for purposes of this Rule
13    2  only (regardless of whether that employee contribution was
14    paid by the employer on behalf of the participant).
15        With respect to any retirement annuity that began  before
16    the effective date of this amendatory Act of the 91st General
17    Assembly  and  for  which  an  employee contribution was made
18    under Section 15-136.2,  the  System  shall  recalculate  the
19    retirement  annuity and shall pay the amounts thus due in the
20    manner provided in Section 15-186.1 for  benefits  mistakenly
21    set too low.
22        In  no event shall an increased Rule 2 retirement annuity
23    otherwise resulting from this  amendatory  Act  of  the  91st
24    General  Assembly be lower than the amount obtained by adding
25    (1) the monthly amount  obtained  by  dividing  the  combined
26    employee   and  employer  contributions  made  under  Section
27    15-136.2 by the System's annuity factor for the  age  of  the
28    participant  at  the  beginning of the annuity payment period
29    and (2) the amount equal  to  the  participant's  annuity  if
30    calculated  under  Rule 1, reduced under Section 15-136(b) as
31    if no contributions had been made under Section 15-136.2.
32        The changes made by  this  amendatory  Act  of  the  91st
33    General   Assembly   are   a   legislative  response  to  and
34    implementation  of  the  Fourth  District   Appellate   Court
 
                            -16-               LRB9110333EGfg
 1    decision in Mattis v. State Universities Retirement System et
 2    al.   The  changes  made  by  this amendatory Act of the 91st
 3    General Assembly apply without regard to whether  the  person
 4    is in service as an employee on or after its effective date.
 5        With  respect  to  a  police  officer  or firefighter who
 6    retires on or after August 14, the  effective  date  of  this
 7    amendatory  Act of 1998, the accumulated normal contributions
 8    taken into account under clauses (i) and (ii) of this Rule  2
 9    shall include the additional normal contributions made by the
10    police officer or firefighter under Section 15-157(a).
11        Rule  3:  The  retirement annuity of a participant who is
12    employed at least one-half time during the  period  on  which
13    his or her final rate of earnings is based, shall be equal to
14    the   participant's  years  of  service  not  to  exceed  30,
15    multiplied by (1) $96 if  the  participant's  final  rate  of
16    earnings  is  less than $3,500, (2) $108 if the final rate of
17    earnings is at least $3,500 but less than $4,500, (3) $120 if
18    the final rate of earnings is at least $4,500 but  less  than
19    $5,500,  (4)  $132  if the final rate of earnings is at least
20    $5,500 but less than $6,500, (5) $144 if the  final  rate  of
21    earnings is at least $6,500 but less than $7,500, (6) $156 if
22    the  final  rate of earnings is at least $7,500 but less than
23    $8,500, (7) $168 if the final rate of earnings  is  at  least
24    $8,500  but  less than $9,500, and (8) $180 if the final rate
25    of earnings is $9,500 or more, except that  the  annuity  for
26    those   persons   having   made  an  election  under  Section
27    15-154(a-1)  shall  be  calculated  and  payable  under   the
28    portable   retirement   benefit   program   pursuant  to  the
29    provisions of Section 15-136.4.
30        Rule 4:  A participant who is at least age 50 and has  25
31    or  more years of service as a police officer or firefighter,
32    and a participant who is age 55 or over and has at  least  20
33    but  less  than  25  years  of service as a police officer or
34    firefighter, shall be entitled to  a  retirement  annuity  of
 
                            -17-               LRB9110333EGfg
 1    2 1/4% of the final rate of earnings for each of the first 10
 2    years  of  service as a police officer or firefighter, 2 1/2%
 3    for each of the next 10 years of service as a police  officer
 4    or  firefighter,  and  2 3/4%  for  each year of service as a
 5    police  officer  or  firefighter  in  excess  of   20.    The
 6    retirement  annuity  for  all other service shall be computed
 7    under Rule 1.
 8        For purposes of this Rule 4, a participant's service as a
 9    firefighter shall also include the following:
10             (i)  service that is performed while the  person  is
11        an employee under subsection (h) of Section 15-107; and
12             (ii)  in  the  case  of  an  individual  who  was  a
13        participating employee employed in the fire department of
14        the  University  of  Illinois's  Champaign-Urbana  campus
15        immediately   prior  to  the  elimination  of  that  fire
16        department and who immediately after the  elimination  of
17        that  fire department transferred to another job with the
18        University of Illinois, service performed as an  employee
19        of  the  University  of Illinois in a position other than
20        police officer or firefighter,  from  the  date  of  that
21        transfer until the employee's next termination of service
22        with the University of Illinois.
23        (b)  The  retirement annuity provided under Rules 1 and 3
24    above shall be reduced by  1/2  of  1%  for  each  month  the
25    participant  is  under  age  60  at  the  time of retirement.
26    However, this reduction shall  not  apply  in  the  following
27    cases:
28             (1)  For  a  disabled  participant  whose disability
29        benefits have been discontinued because  he  or  she  has
30        exhausted   eligibility  for  disability  benefits  under
31        clause (6) of Section 15-152;
32             (2)  For a participant who has at least  the  number
33        of  years  of service required to retire at any age under
34        subsection (a) of Section 15-135; or
 
                            -18-               LRB9110333EGfg
 1             (3)  For that portion of a retirement annuity  which
 2        has   been   provided   on  account  of  service  of  the
 3        participant during periods when he or she  performed  the
 4        duties  of  a  police  officer  or  firefighter, if these
 5        duties were performed for at least  5  years  immediately
 6        preceding the date the retirement annuity is to begin.
 7        (c)  The  maximum retirement annuity provided under Rules
 8    1, 2, and 4 shall be the lesser of (1) the  annual  limit  of
 9    benefits  as specified in Section 415 of the Internal Revenue
10    Code of 1986, as such Section may be  amended  from  time  to
11    time  and  as  such  benefit  limits shall be adjusted by the
12    Commissioner of Internal Revenue, and (2) 80% of  final  rate
13    of earnings.
14        (d)  An  annuitant whose status as an employee terminates
15    after August 14, 1969 shall receive  automatic  increases  in
16    his or her retirement annuity as follows:
17        Effective  January  1  immediately following the date the
18    retirement annuity begins, the  annuitant  shall  receive  an
19    increase  in  his or her monthly retirement annuity of 0.125%
20    of the monthly retirement annuity provided under Rule 1, Rule
21    2, Rule 3, or Rule 4, contained in this  Section,  multiplied
22    by  the number of full months which elapsed from the date the
23    retirement annuity payments began to January  1,  1972,  plus
24    0.1667%  of  such  annuity,  multiplied by the number of full
25    months which elapsed from January 1, 1972, or  the  date  the
26    retirement  annuity  payments  began,  whichever is later, to
27    January 1, 1978, plus 0.25% of such annuity multiplied by the
28    number of full months which elapsed from January 1, 1978,  or
29    the  date the retirement annuity payments began, whichever is
30    later, to the effective date of the increase.
31        The annuitant shall receive an increase  in  his  or  her
32    monthly  retirement  annuity  on  each  January  1 thereafter
33    during the annuitant's life of  3%  of  the  monthly  annuity
34    provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
 
                            -19-               LRB9110333EGfg
 1    this  Section.  The change made under this subsection by P.A.
 2    81-970 is effective January  1,  1980  and  applies  to  each
 3    annuitant  whose  status  as an employee terminates before or
 4    after that date.
 5        Beginning January 1, 1990, all automatic annual increases
 6    payable  under  this  Section  shall  be  calculated   as   a
 7    percentage  of  the  total annuity payable at the time of the
 8    increase, including all increases  previously  granted  under
 9    this Article.
10        The  change  made  in  this subsection by P.A. 85-1008 is
11    effective January 26, 1988, and is applicable without  regard
12    to whether status as an employee terminated before that date.
13        (e)  If,  on  January 1, 1987, or the date the retirement
14    annuity payment period begins, whichever is later, the sum of
15    the retirement annuity provided under Rule 1  or  Rule  2  of
16    this  Section  and  the  automatic  annual increases provided
17    under the preceding subsection or Section  15-136.1,  amounts
18    to  less  than the retirement annuity which would be provided
19    by Rule 3, the retirement annuity shall be  increased  as  of
20    January  1,  1987, or the date the retirement annuity payment
21    period begins, whichever is later, to the amount which  would
22    be  provided by Rule 3 of this Section. Such increased amount
23    shall be considered as the retirement annuity in  determining
24    benefits  provided under other Sections of this Article. This
25    paragraph applies without regard  to  whether  status  as  an
26    employee   terminated  before  the  effective  date  of  this
27    amendatory Act of  1987,  provided  that  the  annuitant  was
28    employed  at  least  one-half time during the period on which
29    the final rate of earnings was based.
30        (f)  A participant is entitled to such additional annuity
31    as may be provided on an actuarially equivalent basis, by any
32    accumulated additional contributions to his  or  her  credit.
33    However, the additional contributions made by the participant
34    toward the automatic increases in annuity provided under this
 
                            -20-               LRB9110333EGfg
 1    Section  shall  not  be taken into account in determining the
 2    amount of such additional annuity.
 3        (g)  If, (1) by law, a function of a  governmental  unit,
 4    as  defined by Section 20-107 of this Code, is transferred in
 5    whole or in part  to  an  employer,  and  (2)  a  participant
 6    transfers  employment  from  such  governmental  unit to such
 7    employer within 6 months after the transfer of the  function,
 8    and (3) the sum of (A) the annuity payable to the participant
 9    under  Rule  1,  2, or 3 of this Section (B) all proportional
10    annuities payable to the participant by all other  retirement
11    systems  covered  by  Article 20, and (C) the initial primary
12    insurance amount to which the participant is  entitled  under
13    the  Social Security Act, is less than the retirement annuity
14    which would have been payable if  all  of  the  participant's
15    pension  credits  validated  under  Section  20-109  had been
16    validated under this system, a supplemental annuity equal  to
17    the  difference  in  such  amounts  shall  be  payable to the
18    participant.
19        (h)  On January 1, 1981, an annuitant who was receiving a
20    retirement annuity on or before January 1,  1971  shall  have
21    his  or  her  retirement annuity then being paid increased $1
22    per month for each year of creditable service. On January  1,
23    1982,  an  annuitant  whose  retirement  annuity  began on or
24    before January 1, 1977, shall  have  his  or  her  retirement
25    annuity  then being paid increased $1 per month for each year
26    of creditable service.
27        (i)  On January 1, 1987, any annuitant  whose  retirement
28    annuity  began  on  or before January 1, 1977, shall have the
29    monthly retirement annuity increased by an amount equal to 8¢
30    per year of creditable service times the number of years that
31    have elapsed since the annuity began.
32    (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
33    eff. 8-16-97; 90-576, eff.  3-31-98;  90-655,  eff.  7-30-98;
34    90-766, eff. 8-14-98.)
 
                            -21-               LRB9110333EGfg
 1        (40 ILCS 5/15-136.2) (from Ch. 108 1/2, par. 15-136.2)
 2        Sec. 15-136.2.  Early retirement without discount.
 3        (a)  A  participant whose retirement annuity begins after
 4    June 1, 1981 and on or before September 1,  2002  and  within
 5    six months of the last day of employment for which retirement
 6    contributions  were  required,  may  elect  at  the  time  of
 7    application  to  make a one time employee contribution to the
 8    System and thereby avoid the early  retirement  reduction  in
 9    retirement  annuity specified under subsection (b) of Section
10    15-136.  The exercise of the election shall obligate the last
11    employer to also make a one time non-refundable  contribution
12    to the System.
13        Unless  otherwise  contractually waived by agreement with
14    the employer, any person who began to  receive  a  retirement
15    annuity  on  or  after  October  6,  1998 and such retirement
16    annuity (i)  began  within  6  months  of  the  last  day  of
17    employment  for  which retirement contributions were required
18    and  (ii)  was  reduced  under  Section  15-136(b)   due   to
19    retirement below age 60, may elect, within 6 months after the
20    effective  date  of  this  amendatory Act of the 91st General
21    Assembly, to make a one-time  employee  contribution  to  the
22    System  under  this  Section  and have the retirement annuity
23    recalculated in accordance with Rule  2  of  Section  15-136.
24    The  exercise of this election obligates the last employer to
25    also make a one-time contribution to the System.
26        (b)  The one time  employee  and  employer  contributions
27    shall  be  a percentage of the retiring participant's highest
28    full time annual salary rate during the academic years  which
29    were  considered  in  determining  his  or  her final rate of
30    earnings, or if not full time then the full time  equivalent.
31    The  employee contribution rate shall be 7% multiplied by the
32    lesser of the following 2 sums: (1) the number of years  that
33    the  participant  is  less  than age 60; or (2) the number of
34    years that the participant's creditable service is less  than
 
                            -22-               LRB9110333EGfg
 1    35  years.  The employer contribution shall be at the rate of
 2    20% for each year the participant is less than age  60.   The
 3    employer  shall  pay  the employer contribution from the same
 4    source  of  funds  which  is  used  in  paying  earnings   to
 5    employees.
 6        Upon  receipt of the application and election, the System
 7    shall  determine  the  one   time   employee   and   employer
 8    contributions.   The  provisions of this Section shall not be
 9    applicable until all the above  outlined  contributions  have
10    been   received   by  the  System;  however,  the  date  such
11    contributions  are  received  shall  not  be  considered   in
12    determining the effective date of retirement.
13        For  persons  who  apply to the Board after the effective
14    date of this amendatory Act of 1993 and before July 1,  1993,
15    requesting a retirement annuity to begin no earlier than July
16    1,  1993  and no later than June 30, 1994, the employer shall
17    pay both the employee  and  employer  contributions  required
18    under this Section.
19        (c)  The   number  of  employees  making  a  contribution
20    retiring under this Section in any fiscal year may be limited
21    at the option of the employer to no less than  15%  of  those
22    eligible.   The  right  to elect to make a contribution under
23    this Section  early  retirement  without  discount  shall  be
24    allocated  among  those applying on the basis of seniority in
25    the service of the last employer.
26    (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)

27        (40 ILCS 5/15-136.3)
28        Sec. 15-136.3. Minimum retirement annuity.
29        (a)  Beginning  January  1,  1997,  any  person  who   is
30    receiving  a  monthly  retirement  annuity under this Article
31    which, after inclusion of  (1)  all  one-time  and  automatic
32    annual  increases  to  which  the person is entitled, (2) any
33    supplemental annuity payable under Section 15-136.1, and  (3)
 
                            -23-               LRB9110333EGfg
 1    any amount deducted under Section 15-138 or 15-140 to provide
 2    a  reversionary  annuity,  is  less  than the minimum monthly
 3    retirement benefit amount specified in subsection (b) of this
 4    Section, shall be entitled to a monthly supplemental  payment
 5    equal to the difference.
 6        (b)  For  purposes  of the calculation in subsection (a),
 7    the minimum monthly retirement benefit amount is the  sum  of
 8    $25  for  each  year of service credit, up to a maximum of 30
 9    years of service.  For  a  person  receiving  a  supplemental
10    payment  under this Section, the $25 shall be increased by 3%
11    on the later of (i) January 1, 2001 or  (ii)  the  January  1
12    occurring  on  or  next  after  the  first anniversary of the
13    granting of the  supplemental  payment,  and  by  3%  of  the
14    current  amount  on  each  January  1  following  the initial
15    increase.
16        (c)  The change to this Section made by  this  amendatory
17    Act  of  the  91st  General  Assembly  applies to all persons
18    receiving a retirement annuity under  this  Article,  without
19    regard  to  whether or not employment terminated prior to the
20    effective date of this amendatory Act Section.
21    (Source: P.A. 89-616, eff. 8-9-96.)

22        (40 ILCS 5/15-136.4)
23        Sec. 15-136.4. Retirement  and  Survivor  Benefits  Under
24    Portable Benefit Package.
25        (a)  This  Section 15-136.4 describes the form of annuity
26    and survivor benefits available  to  a  participant  who  has
27    elected  the  portable  benefit package and has completed the
28    one-year waiting period  required  under  subsection  (e)  of
29    Section  15-134.5.   For  purposes  of this Section, the term
30    "eligible spouse" means the husband or wife of a  participant
31    to   whom   the  participant  is  married  on  the  date  the
32    participant's retirement annuity  begins,  provided  however,
33    that  if the participant should die prior to the commencement
 
                            -24-               LRB9110333EGfg
 1    of retirement annuity benefits, then "eligible spouse"  means
 2    the  husband  or  wife,  if  any, to whom the participant was
 3    married throughout the one-year period preceding the date  of
 4    his or her death.
 5        (b)  This  subsection  (b)  describes  the normal form of
 6    annuity payable to a  participant  subject  to  this  Section
 7    15-136.4.  If the participant is unmarried on the date his or
 8    her  annuity  payments  commence,  then  the annuity payments
 9    shall be made  in  the  form  of  a  single-life  annuity  as
10    described  in  Section 15-118.  If the participant is married
11    on the date his or her annuity payments  commence,  then  the
12    annuity  payments  shall  be  paid in the form of a qualified
13    joint and survivor annuity that is the  actuarial  equivalent
14    of  the  single-life annuity.  Under the "qualified joint and
15    survivor annuity", a reduced amount  shall  be  paid  to  the
16    participant  for  his or her lifetime and his or her eligible
17    spouse, if surviving at the  participant's  death,  shall  be
18    entitled   to  receive  thereafter  a  lifetime  survivorship
19    annuity in a monthly amount  equal  to  50%  of  the  reduced
20    monthly amount that was payable to the participant.  The last
21    payment  of  a  qualified joint and survivor annuity shall be
22    made as of the first day of the month in which the  death  of
23    the survivor occurs.
24        (c)  Instead  of the normal form of annuity that would be
25    paid under subsection (b), a participant may elect in writing
26    within the 90-day period prior to the date his or her annuity
27    payments commence to waive the normal form of annuity payment
28    and receive an optional  form  of  annuity  as  described  in
29    subsection  (h).  If the participant is married and elects an
30    optional form of annuity under subsection (h)  other  than  a
31    joint   and   survivor   annuity  with  the  eligible  spouse
32    designated as the contingent annuitant,  then  such  election
33    shall  require  the  consent of his or her eligible spouse in
34    the manner described in subsection (d).  At any  time  during
 
                            -25-               LRB9110333EGfg
 1    the  90-day  period  preceding  the  date  the  participant's
 2    annuity  commences,  the  participant may revoke the optional
 3    form elected under this subsection (c) and reinstate coverage
 4    under the qualified joint and survivor  annuity  without  the
 5    spouse's consent, but an election to revoke the optional form
 6    elected  and  elect  a  new  optional  form  or  designate  a
 7    different contingent annuitant shall not be effective without
 8    the eligible spouse's consent.
 9        (d)   The  eligible spouse's consent to any election made
10    pursuant to this Section that requires the eligible  spouse's
11    consent  shall be in writing and shall acknowledge the effect
12    of the consent.  In addition, the eligible spouse's signature
13    on the written consent must be witnessed by a notary  public.
14    The  eligible  spouse's  consent  need not be obtained if the
15    system is satisfied that there is no  eligible  spouse,  that
16    the  eligible  spouse  cannot  be  located, or because of any
17    other relevant circumstances.  An eligible  spouse's  consent
18    under  this  Section  is  valid  only  with  respect  to  the
19    specified  optional  form  of  payment  and,  if  applicable,
20    contingent  annuitant  designated by the participant.  If the
21    optional form of  payment  or  the  contingent  annuitant  is
22    subsequently  changed  (other  than  by  a  revocation of the
23    optional form and reinstatement of the  qualified  joint  and
24    survivor  annuity),  a  new consent by the eligible spouse is
25    required.  The eligible spouse's consent to an election  made
26    by a participant pursuant to this Section, once made, may not
27    be revoked by the eligible spouse.
28        (e)   Within  a  reasonable  period of time preceding the
29    date a participant's annuity commences, a  participant  shall
30    be  supplied  with a written explanation of (1) the terms and
31    conditions  of  the  normal  form  single-life  annuity   and
32    qualified  joint  and survivor annuity, (2) the participant's
33    right to elect a single-life annuity or an optional  form  of
34    payment  under  subsection (h) subject to his or her eligible
 
                            -26-               LRB9110333EGfg
 1    spouse's consent, if applicable, and  (3)  the  participant's
 2    right  to  reinstate  coverage  under the qualified joint and
 3    survivor annuity prior to his  or  her  annuity  commencement
 4    date  by  revoking an election of an optional form of benefit
 5    under subsection (h).
 6        (f)  If a married participant with at least 1.5  years  5
 7    years  of service dies prior to commencing retirement annuity
 8    payments and prior to taking a refund under  Section  15-154,
 9    his   or  her  eligible  spouse  is  entitled  to  receive  a
10    pre-retirement survivor annuity, if  there  is  not  then  in
11    effect  a waiver of the pre-retirement survivor annuity.  The
12    pre-retirement survivor annuity payable under this subsection
13    shall be a monthly annuity payable for the eligible  spouse's
14    life,  commencing  as  of  the  beginning  of  the month next
15    following the later of the date of the participant's death or
16    the date the participant would have first met the eligibility
17    requirements  for  retirement,  and  continuing  through  the
18    beginning of the month in which the  death  of  the  eligible
19    spouse  occurs.   The  monthly  amount  payable to the spouse
20    under the pre-retirement survivor annuity shall be  equal  to
21    the  monthly  amount  that  would  be  payable  as a survivor
22    annuity  under  the  qualified  joint  and  survivor  annuity
23    described in  subsection  (b)  if:  (1)  in  the  case  of  a
24    participant  who  dies  on  or  after  the  date on which the
25    participant  has  met  the   eligibility   requirements   for
26    retirement,  the  participant  had  retired with an immediate
27    qualified joint and survivor annuity on the  day  before  the
28    participant's  date   of  death;  or  (2)  in  the  case of a
29    participant who dies before the earliest date  on  which  the
30    participant  would  have met the eligibility requirements for
31    retirement age, the participant had separated from service on
32    the date of death, survived to the  earliest  retirement  age
33    based  on  service prior to his or her death, retired with an
34    immediate  qualified  joint  and  survivor  annuity  at   the
 
                            -27-               LRB9110333EGfg
 1    earliest retirement age, and died on the day after the day on
 2    which  the  participant  would  have  attained  the  earliest
 3    retirement age.
 4        (g)  A  married participant who has not retired may elect
 5    at any time to  waive  the  pre-retirement  survivor  annuity
 6    described in subsection (f).  Any such election shall require
 7    the  consent  of  the  participant's  eligible  spouse in the
 8    manner  described  in  subsection  (e).   A  waiver  of   the
 9    pre-retirement  survivor  annuity shall increase the lump sum
10    death benefit payable under subsection (b) of Section 15-141.
11    Prior to electing any waiver of the  pre-retirement  survivor
12    annuity,  the  participant  shall  be provided with a written
13    explanation  of  (1)  the  terms  and   conditions   of   the
14    pre-retirement   survivor  annuity  and  the  death  benefits
15    payable  from  the  system  both   with   and   without   the
16    pre-retirement  survivor annuity, (2) the participant's right
17    to elect a waiver  of  the  pre-retirement  survivor  annuity
18    coverage  subject to his or her spouse's consent, and (3) the
19    participant's  right  to  reinstate  pre-retirement  survivor
20    annuity coverage at any time by revoking a  prior  waiver  of
21    such coverage.
22        (h)  By  filing  a  timely  election  with  the system, a
23    participant who will be  eligible  to  receive  a  retirement
24    annuity  under  this  Section  may  waive  the normal form of
25    annuity payment  described  in  subsection  (b),  subject  to
26    obtaining  the  consent  of  his  or  her eligible spouse, if
27    applicable, and elect to receive any  one  of  the  following
28    optional annuity forms:
29             (1)   Joint   and  Survivor  Annuity  Options:   The
30        participant  may  elect  to  receive  a  reduced  annuity
31        payable for his or  her  life  and  to  have  a  lifetime
32        survivorship  annuity  in  a monthly amount equal to 50%,
33        75%, or 100% (as elected  by  the  participant)  of  that
34        reduced   monthly   amount,   to   be   paid   after  the
 
                            -28-               LRB9110333EGfg
 1        participant's death to his or her  contingent  annuitant,
 2        if  the  contingent annuitant is alive at the time of the
 3        participant's death.
 4             (2)  Single-Life  Annuity   Option   (optional   for
 5        married  participants).   The  participant  may  elect to
 6        receive a single-life annuity payable for his or her life
 7        only.
 8    All optional  forms  shall  be  in  an  amount  that  is  the
 9    actuarial equivalent of the single-life annuity.
10        For  the  purposes  of this Section, the term "contingent
11    annuitant" means the  beneficiary  who  is  designated  by  a
12    participant  at  the  time the participant elects a joint and
13    survivor annuity to receive the lifetime survivorship annuity
14    in the event the beneficiary survives the participant at  the
15    participant's death.
16        (i)  Under  no  circumstances  may  an option be elected,
17    changed,  or  revoked  after  the  date   the   participant's
18    retirement annuity commences.
19        (j)  An  election  made  pursuant to subsection (h) shall
20    become inoperative  if  the  participant  or  the  contingent
21    annuitant  dies  before  the  date  the participant's annuity
22    payments commence, or if the  eligible  spouse's  consent  is
23    required and not given.
24        (k)  (Blank).  For purposes of applying the provisions of
25    Section 20-123 of this Code,  the  portable  benefit  package
26    shall  be  treated  as if it were provided by a participating
27    system that has no survivor's annuity benefit.
28    (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)

29        (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
30        Sec.   15-139.    Retirement   annuities;   cancellation;
31    suspended during employment.
32        (a)  If  an  annuitant  returns  to  employment  for   an
33    employer within 60 days after the beginning of the retirement
 
                            -29-               LRB9110333EGfg
 1    annuity  payment  period,  the  retirement  annuity  shall be
 2    cancelled, and the annuitant shall refund to the  System  the
 3    total  amount  of the retirement annuity payments which he or
 4    she received. If the retirement  annuity  is  cancelled,  the
 5    participant shall continue to participate in the System.
 6        (b)  If an annuitant retires prior to age 60 and receives
 7    or  becomes entitled to receive during any month compensation
 8    in excess of the monthly retirement  annuity  (including  any
 9    automatic  annual increases) for services performed after the
10    date of retirement for any employer under  this  System,  the
11    State  Employees'  Retirement  System  of  Illinois,  or  the
12    Teachers'  Retirement  System  of the State of Illinois, that
13    portion  of  the  monthly  retirement  annuity  provided   by
14    employer contributions shall not be payable.
15        If an annuitant retires at age 60 or over and receives or
16    becomes   entitled   to  receive  during  any  academic  year
17    compensation in excess of the difference between his  or  her
18    highest  annual  earnings  prior to retirement and his or her
19    annual retirement annuity computed under Rule 1, Rule 2, Rule
20    3 or Rule 4 of Section 15-136, or under Section 15-136.4, for
21    services performed after  the  date  of  retirement  for  any
22    employer  under  this  System,  that  portion  of the monthly
23    retirement annuity provided by employer  contributions  shall
24    be  reduced  by  an  amount  equal  to  the compensation that
25    exceeds such difference.
26        However, any  remuneration  received  for  serving  as  a
27    member  of  the  Illinois  Educational  Labor Relations Board
28    shall be excluded from "compensation"  for  the  purposes  of
29    this  subsection (b), and serving as a member of the Illinois
30    Educational Labor Relations Board shall not be deemed to be a
31    return to employment for the purposes of this  Section.  This
32    provision  applies  without  regard  to  whether  service was
33    terminated prior to the effective date of this amendatory Act
34    of 1991.
 
                            -30-               LRB9110333EGfg
 1        (c)  If an employer certifies that an annuitant has  been
 2    reemployed  on  a  permanent  and  continuous  basis  or in a
 3    position in which the annuitant is expected to serve  for  at
 4    least  9 months, the annuitant shall resume his or her status
 5    as a participating employee and  shall  be  entitled  to  all
 6    rights applicable to participating employees upon filing with
 7    the  board  an election to forego all annuity payments during
 8    the period of reemployment. Upon subsequent  retirement,  the
 9    retirement  annuity  shall  consist  of the annuity which was
10    terminated  by  the   reemployment,   plus   the   additional
11    retirement  annuity  based  upon  service  granted during the
12    period of reemployment, but the combined  retirement  annuity
13    shall  not  exceed the maximum annuity applicable on the date
14    of the last retirement.
15        The total service and earnings credited before and  after
16    the  initial  date  of  retirement  shall  be  considered  in
17    determining  eligibility  of  the  employee or the employee's
18    beneficiary  to  benefits  under   this   Article,   and   in
19    calculating final rate of earnings.
20        In determining the death benefit payable to a beneficiary
21    of  an  annuitant  who again becomes a participating employee
22    under  this  Section,  accumulated  normal   and   additional
23    contributions   shall   be  considered  as  the  sum  of  the
24    accumulated normal and additional contributions at  the  date
25    of   initial   retirement  and  the  accumulated  normal  and
26    additional contributions credited after that date,  less  the
27    sum of the annuity payments received by the annuitant.
28        The  survivors  insurance benefits provided under Section
29    15-145 shall not be applicable to an  annuitant  who  resumes
30    his  or  her  status  as a participating employee, unless the
31    annuitant, at the time of initial retirement, has a survivors
32    insurance beneficiary who could qualify for such benefits.
33        If the annuitant's employment is  terminated  because  of
34    circumstances  other than death before 9 months from the date
 
                            -31-               LRB9110333EGfg
 1    of reemployment, the provisions  of  this  Section  regarding
 2    resumption  of  status  as a participating employee shall not
 3    apply. The normal and survivors insurance contributions which
 4    are deducted during this period  shall  be  refunded  to  the
 5    annuitant  without  interest,  and  subsequent benefits under
 6    this Article shall be the same as those which were applicable
 7    prior to the date the annuitant resumed employment.
 8        The amendments made to this Section  by  this  amendatory
 9    Act  of  the  91st  General  Assembly apply without regard to
10    whether  the  annuitant  was  in  service  on  or  after  the
11    effective date of this amendatory Act.
12    (Source: P.A. 86-1488.)

13        (40 ILCS 5/15-140) (from Ch. 108 1/2, par. 15-140)
14        Sec. 15-140.  Reversionary annuities.  A  participant  in
15    the  traditional  benefit  package  entitled  to a retirement
16    annuity may, prior to retirement, elect  to  take  a  reduced
17    retirement  annuity  and  provide with the actuarial value of
18    the  reduction,  a  reversionary  annuity  to   a   dependent
19    beneficiary,  subject  to  the  following conditions: (1) the
20    participant's written notice  of  election  to  provide  such
21    annuity  is received by the board at least 30 days before the
22    retirement annuity payment period begins, and (2) the  amount
23    of  the  reversionary annuity is not less than $10 per month,
24    and (3) the reversionary  annuity  is  payable  only  if  the
25    participant dies after retirement.
26        The  participant  may  revoke  the  election  by filing a
27    written  notice   of   revocation   with   the   board.   The
28    beneficiary's  death  prior  to retirement of the participant
29    shall constitute a revocation of the election.
30        The amount of the  reversionary  annuity  shall  be  that
31    specified  in  the  participant's notice of election, but not
32    more than the  amount  which  when  added  to  the  survivors
33    annuity payable to the dependent beneficiary, would equal the
 
                            -32-               LRB9110333EGfg
 1    participant's  reduced  retirement annuity.   The participant
 2    shall specify in the notice  of  election  whether  the  full
 3    retirement annuity is to be resumed or the reduced retirement
 4    annuity  is  to  be  continued,  in the event the beneficiary
 5    predeceases the annuitant.
 6        The reversionary annuity payment period  shall  begin  on
 7    the  day  following  the  annuitant's  death.  A reversionary
 8    annuity shall not be payable if the  beneficiary  predeceases
 9    the annuitant.
10    (Source: P.A. 84-1028.)

11        (40 ILCS 5/15-141) (from Ch. 108 1/2, par. 15-141)
12        Sec. 15-141. Death benefits - Death of participant.
13        (a)  The   beneficiary   of   a   participant  under  the
14    traditional benefit package is entitled to  a  death  benefit
15    equal to the sum of (1) the employee's accumulated normal and
16    additional  contributions  on  the  date  of  death,  (2) the
17    employee's accumulated survivors insurance  contributions  on
18    the  date  of  death, if a survivors insurance benefit is not
19    payable, (3) an amount equal to the employee's final rate  of
20    earnings,  but  not  more than $5,000 if (i) the beneficiary,
21    under rules of the board, was dependent upon the participant,
22    (ii) the participant was a participating employee immediately
23    prior to his or her death, and (iii)  a  survivors  insurance
24    benefit is not payable, and (4) $2,500 if (i) the beneficiary
25    was  not dependent upon the participant, (ii) the participant
26    was a participating employee immediately prior to his or  her
27    death,  and  (iii)  a  survivors  insurance  benefit  is  not
28    payable.
29        (b)  If the participant has elected to participate in the
30    portable  benefit  package  and  has  completed  the one-year
31    waiting period  required  under  subsection  (e)  of  Section
32    15-134.5,  the death benefit shall be equal to the employee's
33    accumulated normal and additional contributions on  the  date
 
                            -33-               LRB9110333EGfg
 1    of  death  plus,  if  the employee died with 1.5 or 5 or more
 2    years  of  service  for  employment  as  defined  in  Section
 3    15-113.1, employer contributions in an amount  equal  to  the
 4    sum  of  the accumulated normal and additional contributions;
 5    except that if a pre-retirement survivor annuity  is  payable
 6    under  Section 15-136.4, the death benefit payable under this
 7    paragraph shall be reduced, but to not less than zero, by the
 8    actuarial value of  the  benefit  payable  to  the  surviving
 9    spouse.   The  beneficiary  of the participant must be his or
10    her spouse unless the spouse has consented to the designation
11    of another beneficiary in the manner described in  subsection
12    (d) of Section 15-136.4.
13        (c)  If  payments  are  made  under  any State or Federal
14    Workers' Compensation or Occupational Diseases Law because of
15    the death of an employee, the portion of  the  death  benefit
16    payable  from  employer contributions shall be reduced by the
17    total amount of the payments.
18    (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)

19        (40 ILCS 5/15-142) (from Ch. 108 1/2, par. 15-142)
20        Sec. 15-142.  Death benefits - Death of annuitant.   Upon
21    the  death  of an annuitant receiving a retirement annuity or
22    disability retirement annuity,  the  annuitant's  beneficiary
23    shall, if a survivor's insurance benefit is not payable under
24    Section  15-145  and  an a pre-retirement survivor annuity is
25    not payable under Section 15-136.4, be entitled  to  a  death
26    benefit  equal  to  the  greater  of  the  following: (1) the
27    excess, if  any,  of  the  sum  of  the  accumulated  normal,
28    survivors  insurance,  and additional contributions as of the
29    date of retirement or  the  date  the  disability  retirement
30    annuity  began,  whichever  is  earlier,  over the sum of all
31    annuity payments made prior to the  date  of  death,  or  (2)
32    $1,000.
33    (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
 
                            -34-               LRB9110333EGfg
 1        (40 ILCS 5/15-144) (from Ch. 108 1/2, par. 15-144)
 2        Sec.   15-144.    Beneficiary  annuities.   This  Section
 3    applies only to the death  benefits  of  persons  who  became
 4    participants  before  August  22, 1997 (the effective date of
 5    Public Act 90-511).
 6        If a deceased participant  has  specified  in  a  written
 7    notice  on  file with the board prior to his or her death, or
 8    if the participant has not so specified, but the  beneficiary
 9    specifies  in  the application for the death benefit that the
10    benefit be paid as an annuity or as a designated cash payment
11    plus an  annuity,  it  shall  be  paid  in  the  manner  thus
12    specified,  unless the annuity is less than $10 per month, in
13    which case the death benefit shall be paid in a  single  cash
14    sum.   If  the  death  benefit  is  paid  as  an annuity, the
15    beneficiary may elect to take an amount not in excess of $500
16    in a single cash sum. The annuity payable  to  a  beneficiary
17    shall  be  the  actuarial  equivalent  of  the death benefit,
18    determined as of the participant's  date  of  death,  on  the
19    basis of the age of the beneficiary at that time.
20        The beneficiary annuity payment period shall begin on the
21    day  following  the death of the deceased and shall terminate
22    on the date of the beneficiary's death.  If  the  beneficiary
23    may  receive  the  death  benefit  in  a single cash sum, but
24    elects to receive an annuity, he or she may, within one  year
25    after  the death of the participant or annuitant, revoke this
26    election and receive in a single cash sum the excess  of  the
27    amount  of the death benefit upon which the annuity was based
28    over the sum of the annuity payments received.
29    (Source: P.A. 83-1440.)

30        (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
31        Sec. 15-145.  Survivors  insurance  benefits;  conditions
32    and amounts.
33        (a)  The survivors insurance benefits provided under this
 
                            -35-               LRB9110333EGfg
 1    Section  shall  be  payable  to  the  eligible survivors of a
 2    participant covered under  the  traditional  benefit  package
 3    upon  the death of (1) a participating employee with at least
 4    1 1/2 years of service,  (2)  a  participant  who  terminated
 5    employment  with  at  least  10  years of service, and (3) an
 6    annuitant in receipt of a retirement  annuity  or  disability
 7    retirement annuity under this Article.
 8        Service  under  the State Employees' Retirement System of
 9    Illinois, the Teachers' Retirement System  of  the  State  of
10    Illinois   and   the  Public  School  Teachers'  Pension  and
11    Retirement Fund of Chicago shall be considered in determining
12    eligibility for survivors benefits under this Section.
13        If by law, a function of a governmental unit, as  defined
14    by  Section  20-107, is transferred in whole or in part to an
15    employer, and an  employee  transfers  employment  from  this
16    governmental  unit to such employer within 6 months after the
17    transfer  of  this  function,  the  service  credits  in  the
18    governmental  unit's  retirement  system  which   have   been
19    validated   under  Section  20-109  shall  be  considered  in
20    determining eligibility for  survivors  benefits  under  this
21    Section.
22        (b)  A  surviving spouse of a deceased participant, or of
23    a deceased annuitant who did not take a refund or  additional
24    annuity   consisting   of   accumulated  survivors  insurance
25    contributions who had a survivors  insurance  beneficiary  at
26    the  time of retirement, shall receive a survivors annuity of
27    30% of the final rate of earnings.  Payments shall  begin  on
28    the  day  following the participant's or annuitant's death or
29    the date the surviving spouse attains age  50,  whichever  is
30    later,  and continue until the death of the surviving spouse.
31    The annuity shall be payable to the surviving spouse prior to
32    attainment of age 50 if the surviving spouse has  in  his  or
33    her  care  a  deceased participant's or annuitant's dependent
34    unmarried child under age 18 (under age  22  if  a  full-time
 
                            -36-               LRB9110333EGfg
 1    student) who is eligible for a survivors annuity.  Remarriage
 2    of  a  surviving  spouse  prior  to attainment of age 55 that
 3    occurs before the effective date of this  amendatory  Act  of
 4    the 91st General Assembly shall disqualify him or her for the
 5    receipt of a survivors annuity.
 6        (c)  Each  dependent  unmarried child under age 18 (under
 7    age 22 if a full-time student) of a deceased participant,  or
 8    of  a  deceased  annuitant  who  did  not  take  a  refund or
 9    additional  annuity  consisting  of   accumulated   survivors
10    insurance   contributions   who  had  a  survivors  insurance
11    beneficiary at the time  of  his  or  her  retirement,  shall
12    receive  a  survivors  annuity equal to the sum of (1) 20% of
13    the final rate of earnings, and (2) 10% of the final rate  of
14    earnings  divided  by the number of children entitled to this
15    benefit.  Payments shall  begin  on  the  day  following  the
16    participant's  or  annuitant's  death  and continue until the
17    child marries, dies, or attains age 18 (age 22 if a full-time
18    student).  If the child is in the care of a surviving  spouse
19    who is eligible for survivors insurance benefits, the child's
20    benefit shall be paid to the surviving spouse.
21        Each   unmarried   child   over  age  18  of  a  deceased
22    participant or of a deceased annuitant who had  a  survivor's
23    insurance  beneficiary  at the time of his or her retirement,
24    and who was dependent upon the participant  or  annuitant  by
25    reason  of  a physical or mental disability which began prior
26    to the date the child attained age 18 (age 22 if a  full-time
27    student), shall receive a survivor's annuity equal to the sum
28    of  (1) 20% of the final rate of earnings, and (2) 10% of the
29    final rate of earnings divided  by  the  number  of  children
30    entitled  to survivors benefits.  Payments shall begin on the
31    day following the  participant's  or  annuitant's  death  and
32    continue  until  the  child  marries,  dies,  or is no longer
33    disabled.  If the child is in the care of a surviving  spouse
34    who is eligible for survivors insurance benefits, the child's
 
                            -37-               LRB9110333EGfg
 1    benefit  may  be  paid  to  the  surviving  spouse.   For the
 2    purposes of  this  Section,  disability  means  inability  to
 3    engage  in  any substantial gainful activity by reason of any
 4    medically determinable physical or mental impairment that can
 5    be expected to result in death or that has lasted or  can  be
 6    expected  to  last  for  a  continuous period of at least one
 7    year.
 8        (d)  Each dependent parent of a deceased participant,  or
 9    of  a  deceased  annuitant  who  did  not  take  a  refund or
10    additional  annuity  consisting  of   accumulated   survivors
11    insurance   contributions   who  had  a  survivors  insurance
12    beneficiary at the time  of  his  or  her  retirement,  shall
13    receive  a  survivors  annuity equal to the sum of (1) 20% of
14    final rate of earnings, and (2) 10% of final rate of earnings
15    divided by the number of parents who qualify for the benefit.
16    Payments shall begin when the parent reaches age  55  or  the
17    day   following   the  participant's  or  annuitant's  death,
18    whichever is later,  and  continue  until  the  parent  dies.
19    Remarriage  of  a  parent prior to attainment of age 55 shall
20    disqualify the parent for the receipt of a survivors annuity.
21        (e)  In addition to the survivors annuity provided above,
22    each survivors insurance beneficiary shall, upon death of the
23    participant or annuitant,  receive  a  lump  sum  payment  of
24    $1,000 divided by the number of such beneficiaries.
25        (f)  The  changes  made  in  this  Section  by Public Act
26    81-712  pertaining  to  survivors  annuities  in   cases   of
27    remarriage  prior  to  age  55  shall apply to each survivors
28    insurance beneficiary who  remarries  after  June  30,  1979,
29    regardless  of  the  date  that  the participant or annuitant
30    terminated his employment or died.
31        The change made to this Section by this amendatory Act of
32    the 91st General Assembly, pertaining to remarriage prior  to
33    age  55,  applies  without  regard  to  whether  the deceased
34    participant or annuitant was  in  service  on  or  after  the
 
                            -38-               LRB9110333EGfg
 1    effective  date  of  this  amendatory Act of the 91st General
 2    Assembly.
 3        (g)  On January 1, 1981, any person who was  receiving  a
 4    survivors annuity on or before January 1, 1971 shall have the
 5    survivors  annuity  then  being paid increased by 1% for each
 6    full year which has elapsed from the date the annuity  began.
 7    On  January  1,  1982, any survivor whose annuity began after
 8    January 1, 1971, but before January 1, 1981, shall  have  the
 9    survivor's  annuity  then being paid increased by 1% for each
10    year which has elapsed from the date the  survivor's  annuity
11    began. On January 1, 1987, any survivor who began receiving a
12    survivor's  annuity  on or before January 1, 1977, shall have
13    the monthly survivor's annuity increased by $1 for each  full
14    year  which has elapsed since the date the survivor's annuity
15    began.
16        (h)  If the  sum  of  the  lump  sum  and  total  monthly
17    survivor  benefits  payable under this Section upon the death
18    of a participant amounts to less than the sum  of  the  death
19    benefits  payable  under items (2) and (3) of Section 15-141,
20    the difference shall be paid in a lump sum to the beneficiary
21    of the participant who  is  living  on  the  date  that  this
22    additional amount becomes payable.
23        (i)  If  the  sum  of  the  lump  sum  and  total monthly
24    survivor benefits payable under this Section upon  the  death
25    of  an annuitant receiving a retirement annuity or disability
26    retirement annuity amounts to less  than  the  death  benefit
27    payable under Section 15-142, the difference shall be paid to
28    the  beneficiary  of  the annuitant who is living on the date
29    that this additional amount becomes payable.
30        (j)  Effective on the later of (1) January  1,  1990,  or
31    (2)  the  January  1  on  or next after the date on which the
32    survivor annuity begins, if the deceased  member  died  while
33    receiving  a  retirement  annuity,  or in all other cases the
34    January 1 nearest the  first  anniversary  of  the  date  the
 
                            -39-               LRB9110333EGfg
 1    survivor  annuity  payments  begin, every survivors insurance
 2    beneficiary shall receive an increase in his or  her  monthly
 3    survivors annuity of 3%.  On each January 1 after the initial
 4    increase, the monthly survivors annuity shall be increased by
 5    3%  of  the  total  survivors  annuity  provided  under  this
 6    Article,   including  previous  increases  provided  by  this
 7    subsection.  Such increases  shall  apply  to  the  survivors
 8    insurance  beneficiaries  of  each participant and annuitant,
 9    whether or not the employment status of  the  participant  or
10    annuitant  terminates  before  the  effective  date  of  this
11    amendatory  Act of 1990.  This subsection (j) also applies to
12    persons receiving  a  survivor  annuity  under  the  portable
13    benefit package.
14        (k)  If  the  Internal  Revenue Code of 1986, as amended,
15    requires that the survivors benefits be  payable  at  an  age
16    earlier  than  that  specified  in  this Section the benefits
17    shall  begin  at  the  earlier  age,  in  which  event,   the
18    survivor's  beneficiary shall be entitled only to that amount
19    which is equal to the actuarial equivalent  of  the  benefits
20    provided by this Section.
21        (l)  The  changes made to this Section and Section 15-131
22    by this amendatory Act of  1997,  relating  to  benefits  for
23    certain  unmarried  children who are full-time students under
24    age 22, apply without regard to whether the  deceased  member
25    was  in  service  on  or  after  the  effective  date of this
26    amendatory Act of 1997.  These changes do not  authorize  the
27    repayment  of  a refund or a re-election of benefits, and any
28    benefit or increase in benefits resulting from these  changes
29    is  not  payable  retroactively  for  any  period  before the
30    effective date of this amendatory Act of 1997.
31    (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)

32        (40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
33        Sec. 15-146.   Survivors  insurance  benefits  -  Minimum
 
                            -40-               LRB9110333EGfg
 1    amounts.
 2        (a)  The  minimum  total  survivors  annuity  payable  on
 3    account  of  the  death  of a participant shall be 50% of the
 4    retirement annuity which would have been provided under  Rule
 5    1, Rule 2, or Rule 3 of Section 15-136 upon the participant's
 6    attainment  of the minimum age at which the penalty for early
 7    retirement would  not  be  applicable  or  the  date  of  the
 8    participant's  death,  whichever  is  later,  on the basis of
 9    credits earned prior to the time of death.
10        (b)  The  minimum  total  survivors  annuity  payable  on
11    account of the death of an annuitant  shall  be  50%  of  the
12    retirement  annuity  which is payable under Section 15-136 at
13    the time of death or 50% of the disability retirement annuity
14    payable  under  Section  15-153.2.  This  minimum   survivors
15    annuity  shall  apply  to  each participant and annuitant who
16    dies after September 16, 1979, whether  or  not  his  or  her
17    employee status terminates before or after that date.
18        (c)  If  an annuitant has elected a reversionary annuity,
19    the retirement annuity referred to in this  Section  is  that
20    which  would  have  been  payable  had such election not been
21    filed.
22        (d)  Beginning  January  1,  2001,  any  person  who   is
23    receiving a survivors annuity under this Article which, after
24    inclusion  of  all one-time and automatic annual increases to
25    which the person is entitled, is less than the sum of $25 for
26    each year (up to a maximum  of  30  years)  of  the  deceased
27    member's  service  credit,  shall  be  entitled  to a monthly
28    supplemental payment equal to the difference.  For  a  person
29    receiving  a supplemental payment under this Section, the $25
30    shall be increased by 3% on the January  1  occurring  on  or
31    next  after  the  first  anniversary  of  the granting of the
32    supplemental payment, and by 3% of the current amount on each
33    January 1 following the initial increase.
34        If 2 or more persons are  receiving  survivors  annuities
 
                            -41-               LRB9110333EGfg
 1    based  on  the  same  deceased member, the calculation of the
 2    supplemental payment under this subsection shall be based  on
 3    the  total  of  those  annuities  and  divided pro rata.  The
 4    supplemental payment is not subject to any limitation on  the
 5    maximum  amount  of  the annuity and shall not be included in
 6    the  calculation  of  any  automatic  annual  increase  under
 7    Section 15-145.
 8    (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)

 9        (40 ILCS 5/15-148) (from Ch. 108 1/2, par. 15-148)
10        Sec. 15-148.   Survivors  insurance  benefits  -  General
11    provisions.    The  survivors annuity is payable monthly. Any
12    annuity due but unpaid upon the death of the annuitant, shall
13    be paid to the annuitant's estate.
14        A person who becomes entitled to more than one  survivors
15    insurance  benefit  because of the death of 2 or more persons
16    shall receive only the largest of the benefits;  except  that
17    this  limitation  does  not  apply  to  a survivors insurance
18    beneficiary who is entitled to a survivor's annuity by reason
19    of a mental or physical disability.
20        A  survivors  insurance  beneficiary  or   the   personal
21    representative   of   the  estate  of  a  deceased  survivors
22    insurance beneficiary or the  personal  representative  of  a
23    survivors   insurance   beneficiary  who  is  under  a  legal
24    disability  may  waive  the  right  to  receive  survivorship
25    benefits, provided written notice of the waiver is  given  by
26    the  beneficiary  or  representative  to  the  board within 6
27    months after the death of the participant  or  annuitant  and
28    before  any  payment is made pursuant to an application filed
29    by such person.
30    (Source: P.A. 83-1440.)

31        (40 ILCS 5/15-153.3) (from Ch. 108 1/2, par. 15-153.3)
32        Sec. 15-153.3. Automatic increase in disability  benefit.
 
                            -42-               LRB9110333EGfg
 1    Each  disability  benefit  payable  under  Section 15-150 and
 2    calculated under Section 15-153 or 15-153.2 that has not  yet
 3    received  an  initial  increase  under  this Section shall be
 4    increased  by  0.25%  of  the  monthly   disability   benefit
 5    multiplied  by  the  number  of full months that have elapsed
 6    since the benefit began 7% of the original  fixed  amount  of
 7    such  benefit  on January 1, 2001 1991 or the January 1 on or
 8    next following the fourth anniversary of the granting of  the
 9    benefit, whichever occurs later.
10        On each January 1 following the initial 7% increase under
11    this Section, the disability benefit shall be increased by 3%
12    of  the  current  amount  of  the  benefit,  including  prior
13    increases under this Article.
14        The  changes  made to this Section by this amendatory Act
15    of the 91st General Assembly apply without regard to  whether
16    the  benefit  recipient  was  in  service  on  ar  after  the
17    effective date of this amendatory Act.
18    (Source: P.A. 90-766, eff. 8-14-98.)

19        (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
20        Sec. 15-154.  Refunds.
21        (a)  A   participant  whose  status  as  an  employee  is
22    terminated, regardless of cause, or who has been on  lay  off
23    status  for  more  than  120 days, and who is not on leave of
24    absence, is  entitled  to  a  refund  of  contributions  upon
25    application;  except  that  not  more  than  one  such refund
26    application may be made during any academic year.
27        Except as set forth in subsections (a-1) and  (a-2),  the
28    refund shall be the sum of the accumulated normal, additional
29    and  survivors  insurance  contributions,  less the amount of
30    interest credited on these contributions each year in  excess
31    of 4 1/2% of the amount on which interest was calculated.
32        (a-1)  A  person  who  elects,  in  accordance  with  the
33    requirements  of  Section  15-134.5,  to  participate  in the
 
                            -43-               LRB9110333EGfg
 1    portable benefit package  and  who  becomes  a  participating
 2    employee under that retirement program upon the conclusion of
 3    the  one-year  waiting  period  applicable  to  the  portable
 4    benefit  package  election  shall  have  his  or  her  refund
 5    calculated  in  accordance  with the provisions of subsection
 6    (a-2).
 7        (a-2)  The refund payable to a participant  described  in
 8    subsection  (a-1)  shall  be  the  sum  of  the participant's
 9    accumulated normal and additional contributions,  as  defined
10    in Sections 15-116 and 15-117.  If the participant terminates
11    with  5 or more years of service for employment as defined in
12    Section 15-113.1, he or she  shall  also  be  entitled  to  a
13    distribution  of employer contributions in an amount equal to
14    the  sum   of   the   accumulated   normal   and   additional
15    contributions, as defined in Sections 15-116 and 15-117.
16        (b)  Upon   acceptance   of  a  refund,  the  participant
17    forfeits all accrued rights and credits in the System, and if
18    subsequently reemployed, the participant shall be  considered
19    a  new  employee subject to all the qualifying conditions for
20    participation and eligibility for benefits applicable to  new
21    employees.  If  such  person  again  becomes  a participating
22    employee and continues as such for 2 years, or is employed by
23    an employer and participates for at  least  2  years  in  the
24    Federal  Civil  Service  Retirement  System, all such rights,
25    credits, and  previous  status  as  a  participant  shall  be
26    restored upon repayment of the amount of the refund, together
27    with  compound  interest thereon from the date the refund was
28    received to the date of repayment at the rate of 6% per annum
29    through August 31, 1982, and at  the  effective  rates  after
30    that date.
31        (c)  If  a  participant  covered  under  the  traditional
32    transitional  benefit  package  has  made survivors insurance
33    contributions, but has  no  survivors  insurance  beneficiary
34    upon  retirement,  he  or  she  shall  be entitled to elect a
 
                            -44-               LRB9110333EGfg
 1    refund of the accumulated survivors insurance  contributions,
 2    or to elect an additional annuity the value of which is equal
 3    to  the  accumulated survivors insurance contributions.  This
 4    election  must  be  made  prior  to  the  date  the  person's
 5    retirement annuity is approved by the Board of Trustees.
 6        (d)  A participant, upon application, is  entitled  to  a
 7    refund  of  his  or  her accumulated additional contributions
 8    attributable to the additional contributions described in the
 9    last sentence of subsection (c) of Section 15-157.  Upon  the
10    acceptance   of  such  a  refund  of  accumulated  additional
11    contributions,  the  participant  forfeits  all  rights   and
12    credits which may have accrued because of such contributions.
13        (e)  A  participant  who  terminates  his or her employee
14    status and elects  to  waive  service  credit  under  Section
15    15-154.2,  is entitled to a refund of the accumulated normal,
16    additional and survivors  insurance  contributions,  if  any,
17    which  were  credited the participant for this service, or to
18    an additional annuity the value of  which  is  equal  to  the
19    accumulated   normal,   additional  and  survivors  insurance
20    contributions, if any; except that not  more  than  one  such
21    refund application may be made during any academic year. Upon
22    acceptance  of  this  refund,  the  participant  forfeits all
23    rights and credits accrued because of this service.
24        (f)  If  a  police  officer  or  firefighter  receives  a
25    retirement annuity under Rule 1 or 3 of Section 15-136, he or
26    she shall be entitled  at  retirement  to  a  refund  of  the
27    difference    between   his   or   her   accumulated   normal
28    contributions and the normal contributions which  would  have
29    accumulated  had such person filed a waiver of the retirement
30    formula provided by Rule 4 of Section 15-136.
31        (g)  If, at the time of retirement, a  participant  would
32    be  entitled  to a retirement annuity under Rule 1, 2, 3 or 4
33    of Section 15-136, or under Section 15-136.4,   that  exceeds
34    the  maximum  specified  in  clause  (1) of subsection (c) of
 
                            -45-               LRB9110333EGfg
 1    Section 15-136, he or she shall be entitled to  a  refund  of
 2    the employee contributions, if any, paid under Section 15-157
 3    after  the  date upon which continuance of such contributions
 4    would have otherwise caused the retirement annuity to  exceed
 5    this maximum, plus compound interest at the effective rates.
 6    (Source: P.A.  90-448,  eff.  8-16-97;  90-576, eff. 3-31-98;
 7    90-766, eff. 8-14-98.)

 8        (40 ILCS 5/15-158.2)
 9        Sec. 15-158.2. Self-managed plan.
10        (a)  Purpose.  The General  Assembly  finds  that  it  is
11    important for colleges and universities to be able to attract
12    and  retain the most qualified employees and that in order to
13    attract and retain these employees, colleges and universities
14    should have the flexibility to provide a defined contribution
15    plan as an alternative for eligible employees who  elect  not
16    to  participate  in  a  defined  benefit  retirement  program
17    provided   under   this   Article.   Accordingly,  the  State
18    Universities  Retirement  System  is  hereby  authorized   to
19    establish  and  administer  a  self-managed plan, which shall
20    offer participating employees the opportunity  to  accumulate
21    assets  for  retirement through a combination of employee and
22    employer contributions that may be invested in mutual  funds,
23    collective investment funds, or other investment products and
24    used  to purchase annuity contracts, either fixed or variable
25    or a combination thereof.  The plan must be  qualified  under
26    the Internal Revenue Code of 1986.
27        (b)  Adoption  by  employers.   Each  employer subject to
28    this  Article  may  elect  to  adopt  the  self-managed  plan
29    established under this Section; this election is irrevocable.
30    An employer's election to adopt the self-managed  plan  makes
31    available  to  the  eligible  employees  of that employer the
32    elections described in Section 15-134.5.
33        The State Universities Retirement  System  shall  be  the
 
                            -46-               LRB9110333EGfg
 1    plan  sponsor  for  the self-managed plan and shall prepare a
 2    plan document and prescribe such rules and procedures as  are
 3    considered  necessary  or desirable for the administration of
 4    the self-managed plan.  Consistent with its fiduciary duty to
 5    the participants and beneficiaries of the self-managed  plan,
 6    the  Board  of Trustees of the System may delegate aspects of
 7    plan administration as it sees fit to companies authorized to
 8    do business  in  this  State,  to  the  employers,  or  to  a
 9    combination of both.
10        (c)  Selection of service providers and funding vehicles.
11    The System, in consultation with the employers, shall solicit
12    proposals  to  provide  administrative  services  and funding
13    vehicles for the self-managed plan from insurance and annuity
14    companies and mutual fund companies, banks, trust  companies,
15    or  other financial institutions authorized to do business in
16    this  State.    In  reviewing  the  proposals  received   and
17    approving  and  contracting  with no fewer than 2 and no more
18    than 7 companies, at least 2 of which must be  insurance  and
19    annuity  companies, the Board of Trustees of the System shall
20    consider, among other things, the following criteria:
21             (1)  the nature and  extent  of  the  benefits  that
22        would be provided to the participants;
23             (2)  the  reasonableness of the benefits in relation
24        to the premium charged;
25             (3)  the suitability of the benefits  to  the  needs
26        and  interests  of  the  participating  employees and the
27        employer;
28             (4)  the ability of the company to provide  benefits
29        under  the  contract  and  the financial stability of the
30        company; and
31             (5)  the efficacy of the contract in the recruitment
32        and retention of employees.
33        The System, in consultation  with  the  employers,  shall
34    periodically  review  each  approved  company.  A company may
 
                            -47-               LRB9110333EGfg
 1    continue  to  provide  administrative  services  and  funding
 2    vehicles for  the  self-managed  plan  only  so  long  as  it
 3    continues  to  be an approved company under contract with the
 4    Board.
 5        (d)  Employee Direction.  Employees who are participating
 6    in the program must be allowed  to  direct  the  transfer  of
 7    their  account  balances among the various investment options
 8    offered, subject to applicable contractual provisions.    The
 9    participant  shall  not  be  deemed  a fiduciary by reason of
10    providing such investment  direction.   A  person  who  is  a
11    fiduciary  shall  not  be  liable for any loss resulting from
12    such investment direction and shall not  be  deemed  to  have
13    breached any fiduciary duty by acting in accordance with that
14    direction.    Neither  the System nor the employer guarantees
15    any of the investments in the employee's account balances.
16        (e)  Participation.  An employee eligible to  participate
17    in  the  self-managed  plan  must  make a written election in
18    accordance with the provisions of Section  15-134.5  and  the
19    procedures  established  by the System.  Participation in the
20    self-managed plan by an electing employee shall begin on  the
21    first  day of the first pay period following the later of the
22    date the employee's election is filed with the System or  the
23    effective  date as of which the employee's employer begins to
24    offer participation in the self-managed plan.  Employers  may
25    not make the self-managed plan available earlier than January
26    1, 1998.  An employee's participation in any other retirement
27    program  administered  by the System under this Article shall
28    terminate on the date that participation in the  self-managed
29    plan begins.
30        An  employee  who  has  elected  to  participate  in  the
31    self-managed   plan   under   this   Section   must  continue
32    participation while employed in an eligible position, and may
33    not participate in any other retirement program  administered
34    by  the  System  under  this  Article  while employed by that
 
                            -48-               LRB9110333EGfg
 1    employer  or  any  other  employer  that  has   adopted   the
 2    self-managed plan, unless the self-managed plan is terminated
 3    in accordance with subsection (i).
 4        Participation in the self-managed plan under this Section
 5    shall   constitute   membership  in  the  State  Universities
 6    Retirement System.
 7        A participant under this Section shall be entitled to the
 8    benefits of Article 20 of this Code. modified to reflect  the
 9    following principles:
10             (1)  The  amount of any retirement annuities payable
11        under this Section depend solely  on  the  value  of  the
12        participant's vested account balances and are not subject
13        to a maximum annuity benefit limitation or any adjustment
14        pursuant   to   the   proportional   retirement   annuity
15        provisions  of  Article  20.   If  a  participant  in the
16        self-managed plan under this Section elects to apply  the
17        provisions  of  Article  20,  the  dollar  amount  of the
18        proportional retirement annuity payable from  the  System
19        shall  be  deemed  to  be  zero and the provisions of the
20        second paragraph of Section 20-131 shall not  apply  with
21        respect to the retirement annuity benefits payable to the
22        participant under this Section.
23             (2)  For  purposes  of  Section 20-123 of this Code,
24        the self-managed plan shall be  treated  as  if  it  were
25        provided by a participating system that has no survivor's
26        annuity benefit.
27             (3)  Notwithstanding  Section  20-125  of this Code,
28        upon reemployment by a participating system of a  retired
29        participant  in  the  self-managed  plan,  the retirement
30        annuity payment made to such participant from any annuity
31        contracts acquired from  the  participant's  self-managed
32        plan account balances shall not be suspended.
33        (f)  Establishment of Initial Account Balance.  If at the
34    time  an  employee  elects to participate in the self-managed
 
                            -49-               LRB9110333EGfg
 1    plan he or she has rights and credits in the  System  due  to
 2    previous  participation  in  the traditional benefit package,
 3    the System  shall  establish  for  the  employee  an  opening
 4    account balance in the self-managed plan, equal to the amount
 5    of contribution refund that the employee would be eligible to
 6    receive  under  Section  15-154  if  the  employee terminated
 7    employment  on  that   date   and   elected   a   refund   of
 8    contributions,  except  that  this  hypothetical refund shall
 9    include interest at the effective  rate  for  the  respective
10    years.   The  System  shall  transfer assets from the defined
11    benefit retirement program to the self-managed plan, as a tax
12    free transfer in accordance  with  Internal  Revenue  Service
13    guidelines,  for  purposes  of funding the employee's opening
14    account balance.
15        (g)  No Duplication of Service  Credit.   Notwithstanding
16    any  other  provision  of  this  Article, an employee may not
17    purchase or receive service or service credit  applicable  to
18    any other retirement program administered by the System under
19    this  Article  for any period during which the employee was a
20    participant in the self-managed plan established  under  this
21    Section.
22        (h)  Contributions.    The  self-managed  plan  shall  be
23    funded by contributions from employees participating  in  the
24    self-managed  plan  and employer contributions as provided in
25    this Section.
26        The contribution rate for employees participating in  the
27    self-managed  plan  under  this Section shall be equal to the
28    employee contribution rate  for  other  participants  in  the
29    System,   as  provided  in  Section  15-157.   This  required
30    contribution shall be made as  an  "employer  pick-up"  under
31    Section  414(h)  of  the Internal Revenue Code of 1986 or any
32    successor Section thereof.  Any employee participating in the
33    System's traditional benefit package  prior  to  his  or  her
34    election  to  participate  in  the  self-managed  plan  shall
 
                            -50-               LRB9110333EGfg
 1    continue  to  have  the  employer  pick  up the contributions
 2    required under Section 15-157.  However, the  amounts  picked
 3    up  after  the  election  of  the  self-managed plan shall be
 4    remitted to and treated as assets of the  self-managed  plan.
 5    In  no  event  shall  an employee have an option of receiving
 6    these  amounts  in  cash.   Employees  may  make   additional
 7    contributions  to  the  self-managed  plan in accordance with
 8    procedures prescribed by the System, to the extent  permitted
 9    under rules prescribed by the System.
10        The  program  shall provide for employer contributions to
11    be credited to each self-managed plan participant at  a  rate
12    of  7.6%  of  the  participating  employee's salary, less the
13    amount used by the System to provide disability benefits  for
14    the employee.  The amounts so credited shall be paid into the
15    participant's  self-managed  plan  accounts in a manner to be
16    prescribed by the System.
17        An amount of employer contribution, not exceeding  1%  of
18    the  participating  employee's  salary, shall be used for the
19    purpose of providing the disability benefits of the System to
20    the employee.  Prior to the beginning of each plan year under
21    the self-managed plan, the Board of Trustees shall determine,
22    as  a  percentage  of  salary,   the   amount   of   employer
23    contributions  to  be  allocated  during  that  plan year for
24    providing  disability   benefits   for   employees   in   the
25    self-managed plan.
26        The   State  of  Illinois  shall  make  contributions  by
27    appropriations to the System of  the  employer  contributions
28    required  for  employees  who participate in the self-managed
29    plan under this  Section.    The  amount  required  shall  be
30    certified  by the Board of Trustees of the System and paid by
31    the State in accordance  with  Section  15-165.   The  System
32    shall  not  be  obligated  to  remit  the  required  employer
33    contributions  to any of the insurance and annuity companies,
34    mutual fund  companies,  banks,  trust  companies,  financial
 
                            -51-               LRB9110333EGfg
 1    institutions,  or  other  sponsors  of  any  of  the  funding
 2    vehicles  offered  under  the  self-managed plan until it has
 3    received the required employer contributions from the  State.
 4    In  the  event  of  a  deficiency  in  the  amount  of  State
 5    contributions,  the  System  shall implement those procedures
 6    described in subsection (c) of Section 15-165 to  obtain  the
 7    required funding from the General Revenue Fund.
 8        (i)  Termination.  The self-managed plan authorized under
 9    this  Section may be terminated by the System, subject to the
10    terms of any relevant contracts, and the System shall have no
11    obligation to reestablish the self-managed  plan  under  this
12    Section.   This  Section does not create a right to continued
13    participation in any self-managed plan set up by  the  System
14    under  this Section.  If the self-managed plan is terminated,
15    the participants shall have the right to participate  in  one
16    of  the  other  retirement programs offered by the System and
17    receive service credit in such other retirement  program  for
18    any years of employment following the termination.
19        (j)  Vesting;   Withdrawal;   Return   to   Service.    A
20    participant  in  the  self-managed plan becomes vested in the
21    employer contributions credited to his or her accounts in the
22    self-managed plan on the earliest to occur of the  following:
23    (1)  completion  of  5  years  of  service  with  an employer
24    described  in  Section  15-106;  (2)   the   death   of   the
25    participating   employee   while   employed  by  an  employer
26    described in Section 15-106, if the participant has completed
27    at least 1 1/2 years of service;  or  (3)  the  participant's
28    election  to  retire  and  apply the reciprocal provisions of
29    Article 20 of this Code.
30        A participant in the self-managed  plan  who  receives  a
31    distribution   of   his   or  her  vested  amounts  from  the
32    self-managed plan while not yet eligible for retirement under
33    this Article (and Article 20, if applicable)  upon  or  after
34    termination  of  employment  shall forfeit all service credit
 
                            -52-               LRB9110333EGfg
 1    and  accrued  rights   in   the   System;   if   subsequently
 2    re-employed,  the  participant  shall  be  considered  a  new
 3    employee.    If   a   former   participant  again  becomes  a
 4    participating   employee   (or   becomes   employed   by    a
 5    participating  system  under  Article  20  of  this Code) and
 6    continues as such for at least  2  years,  all  such  rights,
 7    service  credits,  and previous status as a participant shall
 8    be restored upon repayment of the amount of the distribution,
 9    without interest.
10        (k)  Benefit amounts.  If an employee who  is  vested  in
11    employer  contributions  terminates  employment, the employee
12    shall be entitled to a benefit which is based on the  account
13    values   attributable   to   both   employer   and   employee
14    contributions and any investment return thereon.
15        If   an   employee   who   is   not  vested  in  employer
16    contributions terminates employment, the  employee  shall  be
17    entitled  to  a  benefit  based  solely on the account values
18    attributable  to  the  employee's   contributions   and   any
19    investment return thereon, and the employer contributions and
20    any  investment  return  thereon  shall  be  forfeited.   Any
21    employer  contributions  which are forfeited shall be held in
22    escrow by the company investing those contributions and shall
23    be used as directed by the System for future  allocations  of
24    employer  contributions  or  for  the  restoration of amounts
25    previously forfeited by former participants who again  become
26    participating employees.
27    (Source:  P.A.  89-430,  eff. 12-15-95; 90-448, eff. 8-16-97;
28    90-576, eff. 3-31-98; 90-766, eff. 8-14-98.)

29        (40 ILCS 5/15-181) (from Ch. 108 1/2, par. 15-181)
30        Sec. 15-181. Duties of employers.
31        (a)  Each employer, in  preparing  payroll  vouchers  for
32    participating employees, shall indicate, in addition to other
33    information:  (1)  the  amount  of employee contributions and
 
                            -53-               LRB9110333EGfg
 1    survivors  insurance  contributions  required  under  Section
 2    15-157, (2) the gross earnings payable to each employee,  and
 3    (3)  the  total  of  all contributions required under Section
 4    15-157.   An  additional  certified  copy  of  each   payroll
 5    certified  by each employer shall be forwarded along with the
 6    original  payroll  to  the  Director  of  Central  Management
 7    Services, State Comptroller, and other officer receiving  the
 8    original certified payroll for transmittal to the board.
 9        (b)  Each employer, in drawing warrants or checks against
10    trust  or  federal  funds  for  items  of  salary  on payroll
11    vouchers certified by employers, shall draw such warrants  or
12    checks  to  participating  employees  for  the amount of cash
13    salary or wages specified for the period, and  shall  draw  a
14    warrant  or  check  to  this  system  for  the  total  of the
15    contributions required under Section 15-157.  The warrant  or
16    check drawn to this system, together with the additional copy
17    of the payroll supplied by the employer, shall be transmitted
18    immediately to the board.
19        (c)  The  City  of  Champaign  and the City of Urbana, as
20    employers of persons who participate in this System  pursuant
21    to  subsection  (h) of Section 15-107, shall each collect and
22    transmit  to  the  System  from  each  payroll  the  employee
23    contributions required under Section  15-157,  together  with
24    such  payroll  documentation as the Board may require, at the
25    time that the payroll is paid.
26    (Source: P.A. 90-576, eff. 3-31-98.).

27        (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
28        Sec.  20-121.  Calculation  of  proportional   retirement
29    annuities.   Upon  retirement of the employee, a proportional
30    retirement annuity shall be computed  by  each  participating
31    system  in  which  pension credit has been established on the
32    basis of pension credits under each system.  The  computation
33    shall  be in accordance with the formula or method prescribed
 
                            -54-               LRB9110333EGfg
 1    by each participating system which is in effect at  the  date
 2    of  the  employee's latest withdrawal from service covered by
 3    any of the systems in which he has pension credits  which  he
 4    elects  to  have considered under this Article.  However, the
 5    amount  of  any  retirement   annuity   payable   under   the
 6    self-managed  plan established under Section 15-158.2 of this
 7    Code depends solely on the value of the participant's  vested
 8    account  balances  and  is  not  subject  to any proportional
 9    adjustment under this Section.
10        Combined pension  credit  under  all  retirement  systems
11    subject  to  this  Article shall be considered in determining
12    whether the  minimum  qualification  has  been  met  and  the
13    formula  or method of computation which shall be applied.  If
14    a system has a  step-rate  formula  for  calculation  of  the
15    retirement annuity, pension credits covering previous service
16    which  have  been  established  under another system shall be
17    considered in  determining  which  range  or  ranges  of  the
18    step-rate formula are to be applicable to the employee.
19        Interest  on  pension credit shall continue to accumulate
20    in accordance with the provisions of the  law  governing  the
21    retirement  system  in  which  the  same has been established
22    during the time an employee is  in  the  service  of  another
23    employer,  on  the  assumption  such  employee,  for interest
24    purposes for pension credit, is  continuing  in  the  service
25    covered by such retirement system.
26    (Source: P.A. 79-782.)

27        (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
28        Sec.   20-123.    Survivor's   annuity.   The  provisions
29    governing a retirement  annuity  shall  be  applicable  to  a
30    survivor's annuity.  Appropriate credits shall be established
31    for   survivor's  annuity  purposes  in  those  participating
32    systems which provide survivor's annuities, according to  the
33    same  conditions  and  subject  to  the  same limitations and
 
                            -55-               LRB9110333EGfg
 1    restrictions herein prescribed for a retirement annuity.   If
 2    a  participating system has no survivor's annuity benefit, or
 3    if the  survivor's  annuity  benefit  under  that  system  is
 4    waived,  pension credit established in that this system shall
 5    not be considered  in  determining  eligibility  for  or  the
 6    amount  of the survivor's annuity which may be payable by any
 7    other participating system.
 8        For persons who  participate  in  the  self-managed  plan
 9    established  under  Section  15-158.2 or the portable benefit
10    package established under Section  15-136.4,  pension  credit
11    established under Article 15 may be considered in determining
12    eligibility  for or the amount of the survivor's annuity that
13    is payable by any other  participating  system,  but  pension
14    credit  established  in  any other system shall not result in
15    any right to  a  survivor's  annuity  under  the  Article  15
16    system.
17    (Source: P.A. 79-782.)

18        (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
19        Sec.  20-124.   Maximum  benefits.  In no event shall the
20    combined retirement or survivors annuities exceed the highest
21    annuity which would have been payable  by  any  participating
22    system  in  which the employee has pension credits, if all of
23    his pension credits had been validated in that system.
24        If the  combined  annuities  should  exceed  the  highest
25    maximum  as  determined  in accordance with this Section, the
26    respective  annuities  shall   be   reduced   proportionately
27    according  to the ratio which the amount of each proportional
28    annuity bears to the aggregate of all such annuities.
29        In the case of a participant  in  the  self-managed  plan
30    established  under  Section 15-158.2 of this Code to whom the
31    provisions of this Article apply:
32             (i)  For  purposes  of  calculating   the   combined
33        retirement  annuity  and  the proportionate reduction, if
 
                            -56-               LRB9110333EGfg
 1        any, in a retirement annuity other than one payable under
 2        the self-managed plan,  the  amount  of  the  Article  15
 3        retirement  annuity  shall  be  deemed  to be the highest
 4        annuity to which the annuitant would have  been  entitled
 5        if  he or she had participated in the traditional benefit
 6        package as defined in Section 15-103.1  rather  than  the
 7        self-managed plan.
 8             (ii)  For   purposes  of  calculating  the  combined
 9        survivor's annuity and the  proportionate  reduction,  if
10        any, in a survivor's annuity other than one payable under
11        the  self-managed  plan,  the  amount  of  the Article 15
12        survivor's annuity shall be  deemed  to  be  the  highest
13        survivor's  annuity to which the survivor would have been
14        entitled if the deceased employee had participated in the
15        traditional  benefit  package  as  defined   in   Section
16        15-103.1 rather than the self-managed plan.
17             (iii)  Benefits  payable under the self-managed plan
18        are not subject to  proportionate  reduction  under  this
19        Section.
20    (Source: P.A. 79-782.)

21        (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
22        Sec.  20-125.   Return  to  employment  -  suspension  of
23    benefits.   If a retired employee returns to employment which
24    is  covered  by  a  system  from  which  he  is  receiving  a
25    proportional annuity under  this  Article,  his  proportional
26    annuity  from  all  participating  systems shall be suspended
27    during  the  period  of  re-employment,  except   that   this
28    suspension  does not apply to any distributions payable under
29    the self-managed plan established under Section  15-158.2  of
30    this Code.
31        The provisions of the Article under which such employment
32    would  be  covered  shall govern the determination of whether
33    the employee has returned to employment,  and  if  applicable
 
                            -57-               LRB9110333EGfg
 1    the  exemption  of  temporary  employment  or  employment not
 2    exceeding  a  specified  duration  or  frequency,   for   all
 3    participating  systems  from  which  the  retired employee is
 4    receiving  a  proportional  annuity   under   this   Article,
 5    notwithstanding any contrary provisions in the other Articles
 6    governing such systems.
 7    (Source: P.A. 85-1008.)

 8        (40 ILCS 5/20-131) (from Ch. 108 1/2, par. 20-131)
 9        Sec.   20-131.    Retirement   Annuities   and  Survivors
10    Annuities - Guarantees.
11        (a)  This amendatory Act of 1975 (P.A. 79-782) shall  not
12    be   applied  to  deprive  any  person  or  his  survivor  of
13    eligibility for an annuity or to reduce  the  annuity  or  to
14    deprive  such  person  of  rights to which he or his survivor
15    would have been entitled under the provisions of  Article  20
16    which  were in effect immediately prior to September 5, 1975,
17    if he was an employee immediately prior to that date.
18        (b)  If the combined retirement annuity benefits provided
19    under Public Act 79-782 are less than the combined retirement
20    annuity benefits that  would  have  been  payable  under  the
21    alternative formula of Section 20-122, the system under which
22    retirement  would  have  occurred,  as  provided  by  Section
23    20-122, shall increase the proportional retirement annuity by
24    an amount equal to the difference.
25        (c)  Subsection (b) of this Section does not apply to the
26    retirement  annuity  benefits  payable under the self-managed
27    plan established under Section 15-158.2 of this Code.
28    (Source: P.A. 86-820.)

29        (40 ILCS 5/15-158.1 rep.)
30        Section 94.  The Illinois  Pension  Code  is  amended  by
31    repealing Section 15-158.1.
 
                            -58-               LRB9110333EGfg
 1        Section  99.  Effective date.  This Act takes effect upon
 2    becoming law.

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