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91_SB0662
LRB9102930EGfg
1 AN ACT in relation to public employee pension benefits,
2 amending named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Sections 7-118, 7-137, 7-141, 7-146, 7-152, 7-156,
7 7-157, 7-158, 7-164, 7-172, 7-205, and 7-206 as follows:
8 (40 ILCS 5/7-118) (from Ch. 108 1/2, par. 7-118)
9 Sec. 7-118. "Beneficiary":
10 (a) The surviving spouse of an employee or of an
11 employee annuitant, or if no surviving spouse survives, the
12 person or persons designated by a participating employee or
13 employee annuitant, or if no person so designated survives,
14 or if no designation is on file, the estate of the employee
15 or employee annuitant. The person or persons designated by a
16 beneficiary annuitant, or if no person designated survives,
17 or if no designation is on file, the estate of the
18 beneficiary annuitant. The estate of a surviving spouse
19 annuitant where the employee or employee annuitant filed no
20 designation, or no person designated survives at the death of
21 a surviving spouse annuitant. Designations of beneficiaries
22 shall be in writing on forms prescribed by the board and
23 effective upon filing in the fund offices. The designation
24 forms shall provide for contingent beneficiaries. Divorce,
25 dissolution or annulment of marriage revokes the designation
26 of an employee's former spouse as a beneficiary on a
27 designation executed before entry of judgment for divorce,
28 dissolution or annulment of marriage.
29 (b) Notwithstanding the foregoing, an employee, former
30 employee who has not yet received a retirement annuity or
31 separation benefit, or employee annuitant may elect to name
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1 any person, trust or charity to be the primary beneficiary of
2 any death benefit payable by reason of his death. Such
3 election shall state specifically whether it is his intention
4 to exclude the spouse, shall be in writing, and may be
5 revoked at any time. Such election or revocation shall take
6 effect upon being filed in the fund offices.
7 (c) If a surviving spouse annuity is payable to a former
8 spouse upon the death of an employee annuitant, the former
9 spouse, unless designated by the employee annuitant after
10 dissolution of the marriage, shall not be the beneficiary for
11 the purposes of the $5,000 $3,000 death benefit payable under
12 subparagraph 6 of Section 7-164. This benefit shall be paid
13 to the designated beneficiary of the employee annuitant or,
14 if there is no designation, then to the estate of the
15 employee annuitant.
16 (Source: P.A. 89-136, eff. 7-14-95; 90-448, eff. 8-16-97.)
17 (40 ILCS 5/7-137) (from Ch. 108 1/2, par. 7-137)
18 Sec. 7-137. Participating and covered employees.
19 (a) The persons described in this paragraph (a) shall be
20 included within and be subject to this Article and eligible
21 to benefits from this fund, beginning upon the dates
22 hereinafter specified:
23 1. Except as to the employees specifically excluded
24 under the provisions of this Article, all persons who are
25 employees of any municipality (or instrumentality
26 thereof) or participating instrumentality on the
27 effective date of participation of the municipality or
28 participating instrumentality beginning upon such
29 effective date.
30 2. Except as to the employees specifically excluded
31 under the provisions of this Article, all persons, who
32 became employees of any participating municipality (or
33 instrumentality thereof) or participating instrumentality
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1 after the effective date of participation of such
2 municipality or participating instrumentality, beginning
3 upon the date such person becomes an employee.
4 3. All persons who file notice with the board as
5 provided in paragraph (b)2 or (b)3 and 3 of this Section,
6 beginning upon the date of filing such notice.
7 (b) The following described persons shall not be
8 considered participating employees eligible for benefits from
9 this fund, but shall be included within and be subject to
10 this Article (each of the descriptions is not exclusive but
11 is cumulative):
12 1. Any person who occupies an office or is employed
13 in a position normally requiring performance of duty
14 during less than 600 hours a year for a municipality
15 (including all instrumentalities thereof) or a
16 participating instrumentality. If a school treasurer
17 performs services for more than one school district, the
18 total number of hours of service normally required for
19 the several school districts shall be considered to
20 determine whether he qualifies under this paragraph;
21 2. Any person who holds elective office unless he
22 has elected while in that office in a written notice on
23 file with the board to become a participating employee;
24 3. Any person working for a city hospital unless
25 any such person, while in active employment, has elected
26 in a written notice on file with the board to become a
27 participating employee and notification thereof is
28 received by the board;
29 4. Any person who becomes an employee after June
30 30, 1979 as a public service employment program
31 participant under the federal Comprehensive Employment
32 and Training Act and whose wages or fringe benefits are
33 paid in whole or in part by funds provided under such
34 Act.
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1 (c) Any person electing to be a participating employee,
2 pursuant to paragraph (b) of this Section may not change such
3 election, except as provided in Section 7-137.1.
4 (d) Any employee who occupied the position of school
5 nurse in any participating municipality on August 8, 1961 and
6 continuously thereafter until the effective date of the
7 exercise of the option authorized by this subparagraph, who
8 on August 7, 1961 was a member of the Teachers' Retirement
9 System of Illinois, by virtue of certification by the
10 Department of Registration and Education as a public health
11 nurse, may elect to terminate participation in this Fund in
12 order to re-establish membership in such System. The
13 election may be exercised by filing written notice thereof
14 with the Board or with the Board of Trustees of said
15 Teachers' Retirement System, not later than September 30,
16 1963, and shall be effective on the first day of the calendar
17 month next following the month in which the notice was filed.
18 If the written notice is filed with such Teachers' Retirement
19 System, that System shall immediately notify this Fund, but
20 neither failure nor delay in notification shall affect the
21 validity of the employee's election. If the option is
22 exercised, the Fund shall notify such Teachers' Retirement
23 System of such fact and transfer to that system the amounts
24 contributed by the employee to this Fund, including interest
25 at 3% per annum, but excluding contributions applicable to
26 social security coverage during the period beginning August
27 8, 1961 to the effective date of the employee's election.
28 Participation in this Fund as to any credits on or after
29 August 8, 1961 and up to the effective date of the employee's
30 election shall terminate on such effective date.
31 (e) Any participating municipality or participating
32 instrumentality, other than a school district or special
33 education joint agreement created under Section 10-22.31 of
34 the School Code, may, by a resolution or ordinance duly
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1 adopted by its governing body, elect to exclude from
2 participation and eligibility for benefits all persons who
3 are employed after the effective date of such resolution or
4 ordinance and who occupy an office or are employed in a
5 position normally requiring performance of duty for less than
6 1000 hours per year for the participating municipality
7 (including all instrumentalities thereof) or participating
8 instrumentality, except for persons employed in a position
9 normally requiring performance of duty for 600 hours or more
10 per year (i) by such participating municipality or
11 participating instrumentality prior to the effective date of
12 the resolution or ordinance, (ii) by any participating
13 municipality or participating instrumentality prior to
14 January 1, 1982, and (iii) by a participating municipality or
15 participating instrumentality that, which had not adopted
16 such a resolution when the person was employed, and the
17 function served by the employee's position is assumed by
18 another participating municipality or participating
19 instrumentality, or (iv) by any participating municipality or
20 participating instrumentality upon a return to employment
21 after retirement from a position (not necessarily with the
22 same employer) normally requiring the performance of duty for
23 at least 600 but less than 1000 hours per year for which the
24 person participated in the Fund. A participating
25 municipality or participating instrumentality included in and
26 subject to this Article after January 1, 1982 may adopt such
27 resolution or ordinance only prior to the date it becomes
28 included in and subject to this Article. Notwithstanding the
29 foregoing, a participating municipality or participating
30 instrumentality which is formed solely to succeed to the
31 functions of a participating municipality or participating
32 instrumentality shall be considered to have adopted any such
33 resolution or ordinance which may have been applicable to the
34 employees performing such functions. The election made by
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1 the resolution or ordinance shall take effect at the time
2 specified in the resolution or ordinance, and once effective
3 shall be irrevocable.
4 The change in this subsection made by this amendatory Act
5 of the 91st General Assembly also applies to persons whose
6 initial withdrawal from service occurred before the effective
7 date of this amendatory Act.
8 (Source: P.A. 86-272; 87-740; 87-850.)
9 (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
10 Sec. 7-141. Retirement annuities - Conditions.
11 Retirement annuities shall be payable as hereinafter set
12 forth:
13 (a) A participating employee who, regardless of cause,
14 is separated from the service of all participating
15 municipalities and instrumentalities thereof and
16 participating instrumentalities shall be entitled to a
17 retirement annuity provided:
18 1. He is at least age 55, or in the case of a
19 person who is eligible to have his annuity calculated
20 under Section 7-142.1, he is at least age 50.;
21 2. He is (i) an employee who was employed by any
22 participating municipality or participating
23 instrumentality which had not elected to exclude persons
24 employed in positions normally requiring performance of
25 duty for less than 1000 hours per year or was employed in
26 a position normally requiring performance of duty for 600
27 hours or more per year prior to such election by any
28 participating municipality or participating
29 instrumentality included in and subject to this Article
30 on or before the effective date of this amendatory Act of
31 1981 which made such election and is not entitled to
32 receive earnings for employment in a position normally
33 requiring performance of duty for 600 hours or more per
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1 year for any participating municipality and
2 instrumentalities thereof and participating
3 instrumentality; or (ii) an employee who was employed
4 only by a participating municipality or participating
5 instrumentality, or participating municipalities or
6 participating instrumentalities, which have elected to
7 exclude persons in positions normally requiring
8 performance of duty for less than 1000 hours per year
9 after the effective date of such exclusion or which are
10 included under and subject to the Article after the
11 effective date of this amendatory Act of 1981 and elects
12 to exclude persons in such positions, and is not entitled
13 to receive earnings for employment in a position normally
14 requiring performance of duty for 1000 hours or more per
15 year by such a participating municipality or
16 participating instrumentality.;
17 3. The amount of his annuity, before the
18 application of paragraph (b) of Section 7-142, is at
19 least $10 per month.;
20 4. If he first became a participating employee
21 after December 31, 1961, he has at least 8 years of
22 service.
23 (b) Retirement annuities shall be payable:
24 1. As provided in Section 7-119.;
25 2. Except as provided in item 3, upon receipt by
26 the fund of a written application by the board. The
27 effective date may be no earlier than the first day of
28 the first full calendar month after termination of
29 participating employment. not more than one year prior to
30 the date of the receipt by the fund of the application;
31 3. Upon attainment of age 70 1/2 if (i) the member
32 has not submitted an application for the annuity, (ii)
33 the member has at least 8 years of service credit and is
34 no longer in service, (iii) the pension amount is at
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1 least $30 per month, and (iv) the Fund is able to locate
2 the member.;
3 4. To the beneficiary of the deceased annuitant for
4 the unpaid amount accrued to date of death, if any.
5 (c) The amendment to subdivision (b)(2) of this Section
6 made by this amendatory Act of the 91st General Assembly,
7 removing the one year limitation on retroactive annuity,
8 applies to every person who has not yet begun receiving a
9 retirement annuity, without regard to whether the person
10 terminated employment prior to the effective date of this
11 amendatory Act.
12 (Source: P.A. 87-740.)
13 (40 ILCS 5/7-146) (from Ch. 108 1/2, par. 7-146)
14 Sec. 7-146. Temporary disability benefits - Eligibility.
15 Temporary disability benefits shall be payable to
16 participating employees as hereinafter provided.
17 (a) The participating employee shall be considered
18 temporarily disabled if:
19 1. He is unable to perform the duties of any
20 position which might reasonably be assigned to him by his
21 employing municipality or instrumentality thereof or
22 participating instrumentality due to mental or physical
23 disability caused by bodily injury or disease, other than
24 as a result of self-inflicted injury or addiction to
25 narcotic drugs;
26 2. The Board has received written certifications
27 from at least one 1 licensed and practicing physician and
28 the governing body of the employing municipality or
29 instrumentality thereof or participating instrumentality
30 stating that the employee meets the conditions set forth
31 in subparagraph 1 of this paragraph (a).
32 (b) A temporary disability benefit shall be payable to a
33 temporarily disabled employee provided:
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1 1. He:
2 (i) has at least one year of service
3 immediately preceding at the date the temporary
4 disability was incurred and has made contributions
5 to the fund for at least the number of months of
6 service normally required in his position during a
7 12-month period, or has at least 5 years of service
8 credit, the last year of which immediately precedes
9 such date; or
10 (ii) had qualified under clause (i) above, but
11 had an interruption in service with the same
12 participating municipality or participating
13 instrumentality of not more than 3 months in the 12
14 months preceding the date the temporary disability
15 was incurred and was not paid a separation benefit;
16 or
17 (iii) had qualified under clause (i) above,
18 but had an interruption after 20 or more years of
19 creditable service, was not paid a separation
20 benefit, and returned to service prior to the date
21 the disability was incurred.
22 Item (iii) of this subdivision shall apply to all
23 employees whose disabilities were incurred on or after
24 July 1, 1985, and any such employee who becomes eligible
25 for a disability benefit under item (iii) shall be
26 entitled to receive a lump sum payment of any accumulated
27 disability benefits which may accrue from the date the
28 disability was incurred until the effective date of this
29 amendatory Act of 1987.
30 Periods of qualified leave granted in compliance
31 with the federal Family and Medical Leave Act shall be
32 ignored for purposes of determining the number of
33 consecutive months of employment under this subdivision
34 (b)1.
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1 2. He has been temporarily disabled for at least 30
2 days, except where a former temporary or permanent and
3 total disability has reoccurred within 6 months after the
4 employee has returned to service.
5 3. He is receiving no earnings from a participating
6 municipality or instrumentality thereof or participating
7 instrumentality, except as allowed under subsection (f)
8 of Section 7-152.
9 4. He has not refused to submit to a reasonable
10 physical examination by a physician appointed by the
11 Board.
12 5. His disability is not the result of a mental or
13 physical condition which existed on the earliest date of
14 service from which he has uninterrupted service,
15 including prior service, at the date of his disability,
16 provided that this limitation is not applicable if the
17 date of disability is after December 31, 2000, nor is it
18 shall not be applicable to a participating employee who:
19 (i) on the date of disability has 5 years of creditable
20 service, exclusive of creditable service for periods of
21 disability; or (ii) received no medical treatment for the
22 condition for the 3 years immediately prior to such
23 earliest date of service.
24 6. He is not separated from the service of the
25 participating municipality or instrumentality thereof or
26 participating instrumentality which employed him on the
27 date his temporary disability was incurred; for the
28 purposes of payment of temporary disability benefits, a
29 participating employee, whose employment relationship is
30 terminated by his employing municipality, shall be deemed
31 not to be separated from the service of his employing
32 municipality or participating instrumentality if he
33 continues disabled by the same condition and so long as
34 he is otherwise entitled to such disability benefit.
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1 (Source: P.A. 90-766, eff. 8-14-98.)
2 (40 ILCS 5/7-152) (from Ch. 108 1/2, par. 7-152)
3 Sec. 7-152. Disability benefits - Amount. The amount of
4 the monthly temporary and total and permanent disability
5 benefits shall be 50% of the participating employee's final
6 rate of earnings on the date disability was incurred, subject
7 to the following adjustments:
8 (a) The amount of the monthly temporary and total and
9 permanent disability benefits shall be 60% (rather than 50%)
10 of the participating employee's final rate of earnings on the
11 date disability was incurred, if the date of disability
12 occurs after the employer files with the board an undertaking
13 to be responsible for the additional costs resulting from
14 this increase. The undertaking may provide for all or a
15 portion of those additional costs to be collected by the
16 employer from its employees, through deductions from earnings
17 or in any other manner. The undertaking may be terminated by
18 the employer (or rejected by the board) at any time, in which
19 case benefits granted thereafter shall be based on the 50%
20 rate, but benefits already based on the 60% rate shall be
21 unaffected by the termination of the undertaking.
22 (a-5) If the participating employee has a reduced rate
23 of earnings at the time his employment ceases because of
24 disability, the rate of earnings shall be computed on the
25 basis of his last 12 month period of full-time employment.
26 (b) If the participating employee is eligible for a
27 disability benefit under the Federal Social Security Act, the
28 amount of monthly disability benefits shall be reduced, but
29 not to less than $10 a month, by the amount he would be
30 eligible to receive as a disability benefit under the Federal
31 Social Security Act, whether or not because of service as a
32 covered employee under this Article. The reduction shall be
33 effective as of the month the employee is eligible for Social
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1 Security disability benefits. The Board may make such
2 reduction if it appears that the employee may be so eligible
3 pending determination of eligibility and make an appropriate
4 adjustment if necessary after such determination. If the
5 employee, because of his refusal to accept rehabilitation
6 services under the Federal Rehabilitation Act of 1973 or the
7 Federal Social Security Act, or because he is receiving
8 workers' compensation benefits, has his Social Security
9 benefits reduced or terminated, the disability benefit shall
10 be reduced as if the employee were receiving his full Social
11 Security disability benefit.
12 (c) If the employee is over age 65, was not eligible for
13 a Social Security benefit immediately before reaching age 65
14 and is eligible for a Social Security old-age insurance
15 benefit, the amount of the monthly disability benefit shall
16 be reduced, but not to less than $10 a month, by the amount
17 of the old-age insurance benefit to which the employee is
18 entitled whether or not the employee applies for the Social
19 Security old-age insurance benefit. This reduction shall be
20 made in the month after the month in which the employee
21 attains age 65. However, if the employee was receiving a
22 Social Security disability benefit before reaching age 65,
23 the disability benefits after age 65 shall be determined
24 under subsection (b) of this Section.
25 (d) The amount of disability benefits shall not be
26 reduced by reason of any increase, other than one resulting
27 from a correction in the employee's wage records, in the
28 amount of disability or old-age insurance benefits under the
29 Federal Social Security Act which takes effect after the
30 month of the initial reduction under paragraph (b) or (c) of
31 this Section.
32 (e) If the employee in any month receives compensation
33 from gainful employment which is more than 25% of the final
34 rate of earnings on which his disability benefits are based,
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1 the temporary disability benefit payable for that month shall
2 be reduced by an amount equal to such excess.
3 (f) An employee who has been disabled for at least 30
4 days may return to work for the employer on a part-time basis
5 for a trial work period of up to one year, during which the
6 disability shall be deemed to continue. Service credit shall
7 continue to accrue and the disability benefit shall continue
8 to be paid during the trial work period, but the benefit
9 shall be reduced by the amount of earnings received by the
10 disabled employee. Return to service on a full-time basis
11 shall terminate the trial work period. The reduction under
12 this subsection (f) shall be in lieu of the reduction, if
13 any, required under subsection (e).
14 (g) Beginning January 1, 1988, every total and permanent
15 disability benefit shall be increased by 3% of the original
16 amount of the benefit, not compounded, on each January 1
17 following the later of (1) the date the total and permanent
18 disability benefit begins, or (2) the date the total and
19 permanent disability benefit would have begun if the employee
20 had been paid a temporary disability benefit for 30 months.
21 (Source: P.A. 87-740.)
22 (40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156)
23 Sec. 7-156. Surviving spouse annuities - amount.
24 (a) The amount of surviving spouse annuity shall be:
25 (1). Upon the death of an employee annuitant or
26 such person entitled, upon application, to a retirement
27 annuity at date of death, (i) an amount equal to 1/2 of
28 the retirement annuity which was or would have been
29 payable exclusive of the amount so payable which was
30 provided from additional credits, and disregarding any
31 election made under paragraph (b) of Section 7-142, plus
32 (ii) an annuity which could be provided at the then
33 attained age of the surviving spouse and under actuarial
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1 tables then in effect, from the excess of the additional
2 credits, (excluding any such credits used to create a
3 reversionary annuity) used to provide the annuity granted
4 pursuant to paragraph (a)(2) of Section 7-142 of this
5 article over the total annuity payments made pursuant
6 thereto.
7 (2). Upon the death of a participating employee on
8 or after attainment of age 55, an amount equal to 1/2 of
9 the retirement annuity which he could have had as of the
10 date of death had he then retired and applied for
11 annuity, exclusive of the portion thereof which could
12 have been provided from additional credits, and
13 disregarding paragraph (b) of Section 7-142, plus an
14 amount equal to the annuity which could be provided from
15 the total of his accumulated additional credits at date
16 of death, on the basis of the attained age of the
17 surviving spouse on such date.
18 (3). Upon the death of a participating employee
19 before age 55, an amount equal to 1/2 of the retirement
20 annuity which he could have had as of his attained age on
21 the date of death, had he then retired and applied for
22 annuity, and the provisions of this Article that no such
23 annuity shall begin until the employee has attained at
24 least age 55 were not applicable, exclusive of the
25 portion thereof which could have been provided from
26 additional credits and disregarding paragraph (b) of
27 Section 7-142, plus an amount equal to the annuity which
28 could be provided from the total of his accumulated
29 additional credits at date of death, on the basis of the
30 attained age of the surviving spouse on such date.
31 If a surviving spouse is more than 5 years younger than
32 the deceased, that portion of the annuity which is not based
33 on additional credits shall be reduced in the ratio of the
34 value of a life annuity of $1 per year at an age of 5 years
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1 less than the attained age of the deceased, at the earlier of
2 the date of the death or the date his retirement annuity
3 begins, to the value of a life annuity of $1 per year at the
4 attained age of the surviving spouse on such date, according
5 to actuarial tables approved by the Board.
6 In computing the amount of a surviving spouse annuity,
7 incremental increases of retirement annuities to the date of
8 death of the employee annuitant shall be considered.
9 (b) Each surviving spouse annuity payable on January 1,
10 1988 shall be increased on that date by 3% of the original
11 amount of the annuity. Each surviving spouse annuity that
12 begins after January 1, 1988 shall be increased on the
13 January 1 next occurring after the annuity begins, by an
14 amount equal to (i) 3% of the original amount thereof if the
15 deceased employee was receiving a retirement annuity at the
16 time of his death; otherwise (ii) 0.167% of the original
17 amount thereof for each complete month which has elapsed
18 since the date the annuity began. However, if the death of a
19 retirement annuitant occurs in the month of December, the
20 initial increase under this subsection shall be effective
21 with the first payment of the surviving spouse annuity; in
22 this case, references in this Article to the original amount
23 of the surviving spouse annuity shall be deemed to refer to
24 the calculated amount of the annuity before the immediate
25 increase was applied.
26 On each January 1 after the date of the initial increase
27 under this subsection, each surviving spouse annuity shall be
28 increased by 3% of the originally granted amount of the
29 annuity.
30 The change in this subsection made by this amendatory Act
31 of the 91st General Assembly applies to deaths occurring on
32 or after December 1, 2001, without regard to whether the
33 deceased employee was in service on or after the effective
34 date of this amendatory Act.
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1 (Source: P.A. 85-941.)
2 (40 ILCS 5/7-157) (from Ch. 108 1/2, par. 7-157)
3 Sec. 7-157. Surviving spouse annuities - marriage to
4 terminate.
5 (a) If any surviving spouse annuitant marries before
6 January 1, 2001 and, before reaching age 55, the annuity
7 shall be terminated as of the end of the calendar month
8 following the month in which the marriage occurs.
9 (b) Subsection (a) does not apply to a surviving spouse
10 who remarries after December 31, 2000.
11 (Source: P.A. 81-618.)
12 (40 ILCS 5/7-158) (from Ch. 108 1/2, par. 7-158)
13 Sec. 7-158. Surviving spouse annuities - Options. In
14 lieu of the surviving spouse annuity an eligible surviving
15 spouse shall have the option of receiving other benefits as
16 follows:
17 1. The surviving spouse of a participating employee may
18 elect to receive either a single sum death benefit or a
19 surviving spouse annuity and the $5,000 $3,000 death benefit
20 provided in Sections 7-163 and 7-164.
21 2. The surviving spouse of an employee, who has
22 separated from service and would have been entitled to a
23 retirement annuity on date of death, may elect to receive
24 either a single sum death benefit or a surviving spouse
25 annuity and the $5,000 $3,000 death benefit provided in
26 Sections 7-163 and 7-164.
27 3. If any surviving spouse annuity is payable prior to
28 the earliest age at which the recipient will become eligible
29 for a widows' or widowers' insurance benefit under the
30 Federal Social Security Act, the recipient may elect that the
31 annuity payments from this fund shall exceed those payable
32 after attaining such age by an amount not in excess of the
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1 estimated Social Security Benefit, determined as of the
2 effective date of the surviving spouse annuity, provided that
3 in no case shall the total annuity payments made by this fund
4 exceed in actuarial value the annuity which would have been
5 paid had no such election been made.
6 4. The surviving spouse of a participating employee,
7 whose annuity was suspended upon return to employment and who
8 had one year or more of service after his return, may apply
9 the additional service credits to a supplemental surviving
10 spouse annuity and receive the $5,000 $3,000 death benefit or
11 apply the additional service credits to a single sum death
12 benefit and forego the $5,000 $3,000 death benefit payable
13 upon the death of an annuitant.
14 5. The surviving spouse of a participating employee,
15 whose annuity was suspended upon return to employment and who
16 had less than one year of service after his return, shall
17 have the additional service credits applied towards a
18 supplemental surviving spouse annuity and shall receive the
19 $5,000 $3,000 death benefit.
20 (Source: P.A. 85-941.)
21 (40 ILCS 5/7-164) (from Ch. 108 1/2, par. 7-164)
22 Sec. 7-164. Death benefits - Amount. The amount of the
23 death benefit shall be:
24 1. Upon the death of an employee with at least one year
25 of service occurring while in an employment relationship
26 (including employees drawing disability benefits) with a
27 participating municipality or participating instrumentality,
28 an amount equal to the sum of:
29 (a) The employee's normal, additional and survivor
30 credits, including interest credited thereto through the
31 end of the preceding calendar year, but excluding credits
32 and interest thereon allowed for periods of disability.
33 (b) An amount equal to the employee's annual final
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1 rate of earnings. An employee who dies as a result of
2 injuries connected with his duties shall be considered to
3 have a year of service for purposes of this benefit.
4 2. Upon the death of an employee with less than one 1
5 year of service occurring while in the service of any
6 participating municipality or instrumentality, an amount
7 equal to the sum of his accumulated normal, additional and
8 survivor credits on the date of death, excluding those
9 credits and interest thereon allowed during periods of
10 disability.
11 3. Upon the death of an employee who has separated from
12 service and was not entitled to a retirement annuity on the
13 date of death, an amount equal to the sum of his accumulated
14 normal, survivor and additional credits on the date of death
15 excluding those credits and interest thereon allowed during
16 periods of disability.
17 4. Upon the death of an employee in an employment
18 relationship, or an employee who has service and was entitled
19 to a retirement annuity on the date of death, when a
20 surviving spouse or child annuity is awarded, $5,000 $3,000.
21 5. Upon the death of an employee, who has separated from
22 service and was entitled to a retirement annuity on the date
23 of death, and no surviving spouse or child annuity is
24 awarded, $5,000 $3,000 plus an amount equal to his
25 accumulated normal, survivor and additional credits on the
26 date of death, excluding those credits and interest earned
27 thereon allowed during periods of disability.
28 6. Upon the death of an employee annuitant, $5,000
29 $3,000 and, unless a surviving spouse, child or reversionary
30 annuity is payable, the sum of (i) the excess of the normal
31 and survivor credits, excluding those allowed during periods
32 of disability, which the annuitant had as of the effective
33 date of his annuity over the total annuities paid pursuant to
34 paragraph (a) 1 of Section 7-142 to the date of death, plus
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1 (ii) the excess of the additional credits, excluding any such
2 credits used to create a reversionary annuity, used to
3 provide the annuity granted pursuant to paragraph (a) 2 of
4 Section 7-142 over the total annuity payments made pursuant
5 thereto to the time of death.
6 7. Upon the death of an annuitant receiving a
7 reversionary annuity or of a person designated to receive a
8 reversionary annuity prior to the receipt of such annuity the
9 sum of the additional credits of the person creating the
10 reversionary annuity as of the effective date of his own
11 retirement annuity over the reversionary annuity payments, if
12 any, made prior to the date of death of such annuitant or
13 person designated to receive the reversionary annuity.
14 8. Upon the death of an annuitant receiving a
15 beneficiary annuity which was effective before January 1,
16 1986, the excess of the death benefit which was used to
17 provide the annuity, over the sum of all annuity payments
18 made to the beneficiary. Upon the death of an annuitant
19 receiving a beneficiary annuity effective January 1, 1986 or
20 thereafter, the sum of (i) the excess of the normal and
21 survivor credits, excluding those allowed during periods of
22 disability, which the annuitant had as of the effective date
23 of his annuity over the total annuities paid pursuant to
24 paragraph (c) of Section 7-165, to date of death, plus (ii)
25 the excess of the additional credits, excluding any such
26 credits used to create a reversionary annuity, used to
27 provide the annuity granted pursuant to paragraph (d) of
28 Section 7-165 over the total annuity payments made pursuant
29 thereto to the time of death.
30 9. Upon the marriage prior to reaching age 55 (except
31 for a surviving spouse who remarries after December 31, 2000)
32 or death of a person receiving a surviving spouse annuity,
33 unless a child annuity is payable, the sum of (i) the excess
34 of the normal and survivor credits, excluding those credits
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1 and interest thereon allowed during periods of disability,
2 attributable to the employee at the effective date of the
3 annuity or date of death, whichever first occurred, over the
4 total of all annuity payments attributable to paragraph (a) 1
5 of Section 7-142 made to the employee or surviving spouse
6 plus (ii) the excess of the additional credits, excluding any
7 such credits used to create a reversionary annuity or used to
8 provide the annuity attributable to paragraph (a) 2 of
9 Section 7-142 over the total of such payments.
10 10. Upon the marriage, death or attainment of age 18 of
11 a child receiving a child annuity, if no other child
12 annuities are payable, the sum of (i) the excess of the
13 normal and survivor credits excluding those credits and
14 interest thereon allowed during periods of disability, of the
15 employee at the effective date of the annuity or date of
16 death, whichever first occurred, over the total annuity
17 payments attributable to paragraph (a) 1 of Section 7-142
18 made to the employee, surviving spouse and children plus (ii)
19 the excess of the additional credits, excluding any such
20 credits used to create a reversionary annuity, used to
21 provide the annuity attributable to paragraph (a) 2 of
22 Section 7-142 over the total annuity payments made to the
23 employee, surviving spouse and children, pursuant thereto.
24 11. Upon the death of the participating employee whose
25 annuity was suspended upon his return to employment:
26 a. If a surviving spouse or child annuity is
27 awarded, $5,000 $3,000;
28 b. If no surviving spouse or child annuity is
29 awarded and he had less than one year's service upon
30 return, $5,000 $3,000 plus the excess of the normal,
31 survivor and additional credits, including interest
32 thereon, but excluding those allowed during a period of
33 disability, at the effective date of the suspended
34 annuity, plus those allowed after his return, over all
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1 annuity payments made to the employee;
2 c. If no surviving spouse or child annuity is
3 awarded and he has one year or more of service upon
4 return, the higher of (a) the payment under subparagraph
5 b of this paragraph or (b) the payment under paragraph 1
6 of this Section, taking into consideration only the
7 service and credits allowed after his return, plus the
8 excess of the normal, survivor and additional credits,
9 including interest thereon, excluding those allowed
10 during periods of disability, at the effective date of
11 his suspended annuity over all annuity payments made to
12 the employee.
13 12. The $3,000 or $5,000 death benefit provided in
14 paragraphs 4 and 6 shall not be payable to beneficiaries of
15 persons who terminated service prior to September 8, 1971,
16 unless the payment or agreement for payment provided by
17 Section 7-144.2 of this Article is made prior to the date of
18 death.
19 13. The increase in certain death benefits from $1,000
20 to $3,000 provided by this amendatory Act of 1987 shall apply
21 only to deaths occurring on or after January 1, 1988.
22 The increase in certain death benefits from $3,000 to
23 $5,000 provided by this amendatory Act of the 91st General
24 Assembly applies to deaths that occur on or after the
25 effective date of this amendatory Act, without regard to
26 whether the deceased person was in service on or after that
27 date.
28 (Source: P.A. 85-941.)
29 (40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
30 Sec. 7-172. Contributions by participating
31 municipalities and participating instrumentalities.
32 (a) Each participating municipality and each
33 participating instrumentality shall make payment to the fund
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1 as follows:
2 1. municipality contributions in an amount
3 determined by applying the municipality contribution rate
4 to each payment of earnings paid to each of its
5 participating employees;
6 2. an amount equal to the employee contributions
7 provided by paragraphs (a) and (b) of Section 7-173,
8 whether or not the employee contributions are withheld as
9 permitted by that Section;
10 3. all accounts receivable, together with interest
11 charged thereon, as provided in Section 7-209;
12 4. if it has no participating employees with
13 current earnings, an amount payable which, over a period
14 of 20 years beginning with the year following an award of
15 benefit, will amortize, at the effective rate for that
16 year, any negative balance in its municipality reserve
17 resulting from the award. This amount when established
18 will be payable as a separate contribution whether or not
19 it later has participating employees.
20 (b) A separate municipality contribution rate shall be
21 determined for each calendar year for all participating
22 municipalities together with all instrumentalities thereof.
23 The municipality contribution rate shall be determined for
24 participating instrumentalities as if they were participating
25 municipalities. The municipality contribution rate shall be
26 the sum of the following percentages:
27 1. The percentage of earnings of all the
28 participating employees of all participating
29 municipalities and participating instrumentalities which,
30 if paid over the entire period of their service, will be
31 sufficient when combined with all employee contributions
32 available for the payment of benefits, to provide all
33 annuities for participating employees, and the $5,000
34 $3,000 death benefit payable under Sections 7-158 and
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1 7-164, such percentage to be known as the normal cost
2 rate.
3 2. The percentage of earnings of the participating
4 employees of each participating municipality and
5 participating instrumentalities necessary to adjust for
6 the difference between the present value of all benefits,
7 excluding temporary and total and permanent disability
8 and death benefits, to be provided for its participating
9 employees and the sum of its accumulated municipality
10 contributions and the accumulated employee contributions
11 and the present value of expected future employee and
12 municipality contributions pursuant to subparagraph 1 of
13 this paragraph (b). This adjustment shall be spread over
14 the remainder of the period of 40 years from the first of
15 the year following the date of determination.
16 3. The percentage of earnings of the participating
17 employees of all municipalities and participating
18 instrumentalities necessary to provide the present value
19 of all temporary and total and permanent disability
20 benefits granted during the most recent year for which
21 information is available.
22 4. The percentage of earnings of the participating
23 employees of all participating municipalities and
24 participating instrumentalities necessary to provide the
25 present value of the net single sum death benefits
26 expected to become payable from the reserve established
27 under Section 7-206 during the year for which this rate
28 is fixed.
29 5. The percentage of earnings necessary to meet any
30 deficiency arising in the Terminated Municipality
31 Reserve.
32 (c) A separate municipality contribution rate shall be
33 computed for each participating municipality or participating
34 instrumentality for its sheriff's law enforcement employees.
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1 A separate municipality contribution rate shall be
2 computed for the sheriff's law enforcement employees of each
3 forest preserve district that elects to have such employees.
4 For the period from January 1, 1986 to December 31, 1986,
5 such rate shall be the forest preserve district's regular
6 rate plus 2%.
7 In the event that the Board determines that there is an
8 actuarial deficiency in the account of any municipality with
9 respect to a person who has elected to participate in the
10 Fund under Section 3-109.1 of this Code, the Board may adjust
11 the municipality's contribution rate so as to make up that
12 deficiency over such reasonable period of time as the Board
13 may determine.
14 (d) The Board may establish a separate municipality
15 contribution rate for all employees who are program
16 participants employed under the Federal Comprehensive
17 Employment Training Act by all of the participating
18 municipalities and instrumentalities. The Board may also
19 provide that, in lieu of a separate municipality rate for
20 these employees, a portion of the municipality contributions
21 for such program participants shall be refunded or an extra
22 charge assessed so that the amount of municipality
23 contributions retained or received by the fund for all CETA
24 program participants shall be an amount equal to that which
25 would be provided by the separate municipality contribution
26 rate for all such program participants. Refunds shall be
27 made to prime sponsors of programs upon submission of a claim
28 therefor and extra charges shall be assessed to participating
29 municipalities and instrumentalities. In establishing the
30 municipality contribution rate as provided in paragraph (b)
31 of this Section, the use of a separate municipality
32 contribution rate for program participants or the refund of a
33 portion of the municipality contributions, as the case may
34 be, may be considered.
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1 (e) Computations of municipality contribution rates for
2 the following calendar year shall be made prior to the
3 beginning of each year, from the information available at the
4 time the computations are made, and on the assumption that
5 the employees in each participating municipality or
6 participating instrumentality at such time will continue in
7 service until the end of such calendar year at their
8 respective rates of earnings at such time.
9 (f) Any municipality which is the recipient of State
10 allocations representing that municipality's contributions
11 for retirement annuity purposes on behalf of its employees as
12 provided in Section 12-21.16 of the Illinois Public Aid Code
13 shall pay the allocations so received to the Board for such
14 purpose. Estimates of State allocations to be received
15 during any taxable year shall be considered in the
16 determination of the municipality's tax rate for that year
17 under Section 7-171. If a special tax is levied under
18 Section 7-171, none of the proceeds may be used to reimburse
19 the municipality for the amount of State allocations received
20 and paid to the Board. Any multiple-county or consolidated
21 health department which receives contributions from a county
22 under Section 11.2 of "An Act in relation to establishment
23 and maintenance of county and multiple-county health
24 departments", approved July 9, 1943, as amended, or
25 distributions under Section 3 of the Department of Public
26 Health Act, shall use these only for municipality
27 contributions by the health department.
28 (g) Municipality contributions for the several purposes
29 specified shall, for township treasurers and employees in the
30 offices of the township treasurers who meet the qualifying
31 conditions for coverage hereunder, be allocated among the
32 several school districts and parts of school districts
33 serviced by such treasurers and employees in the proportion
34 which the amount of school funds of each district or part of
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1 a district handled by the treasurer bears to the total amount
2 of all school funds handled by the treasurer.
3 From the funds subject to allocation among districts and
4 parts of districts pursuant to the School Code, the trustees
5 shall withhold the proportionate share of the liability for
6 municipality contributions imposed upon such districts by
7 this Section, in respect to such township treasurers and
8 employees and remit the same to the Board.
9 The municipality contribution rate for an educational
10 service center shall initially be the same rate for each year
11 as the regional office of education or school district which
12 serves as its administrative agent. When actuarial data
13 become available, a separate rate shall be established as
14 provided in subparagraph (i) of this Section.
15 The municipality contribution rate for a public agency,
16 other than a vocational education cooperative, formed under
17 the Intergovernmental Cooperation Act shall initially be the
18 average rate for the municipalities which are parties to the
19 intergovernmental agreement. When actuarial data become
20 available, a separate rate shall be established as provided
21 in subparagraph (i) of this Section.
22 (h) Each participating municipality and participating
23 instrumentality shall make the contributions in the amounts
24 provided in this Section in the manner prescribed from time
25 to time by the Board and all such contributions shall be
26 obligations of the respective participating municipalities
27 and participating instrumentalities to this fund. The
28 failure to deduct any employee contributions shall not
29 relieve the participating municipality or participating
30 instrumentality of its obligation to this fund. Delinquent
31 payments of contributions due under this Section may, with
32 interest, be recovered by civil action against the
33 participating municipalities or participating
34 instrumentalities. Municipality contributions, other than
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1 the amount necessary for employee contributions and Social
2 Security contributions, for periods of service by employees
3 from whose earnings no deductions were made for employee
4 contributions to the fund, may be charged to the municipality
5 reserve for the municipality or participating
6 instrumentality.
7 (i) Contributions by participating instrumentalities
8 shall be determined as provided herein except that the
9 percentage derived under subparagraph 2 of paragraph (b) of
10 this Section, and the amount payable under subparagraph 5 of
11 paragraph (a) of this Section, shall be based on an
12 amortization period of 10 years.
13 (Source: P.A. 90-448, eff. 8-16-97.)
14 (40 ILCS 5/7-205) (from Ch. 108 1/2, par. 7-205)
15 Sec. 7-205. Reserves for annuities. Appropriate reserves
16 shall be created for payment of all annuities granted under
17 this Article at the time such annuities are granted and in
18 amounts determined to be necessary under actuarial tables
19 adopted by the Board upon recommendation of the actuary of
20 the fund. All annuities payable shall be charged to the
21 annuity reserve.
22 1. Amounts credited to annuity reserves shall be derived
23 by transfer of all the employee credits from the appropriate
24 employee reserves and by charges to the municipality reserve
25 of those municipalities in which the retiring employee has
26 accumulated service. If a retiring employee has accumulated
27 service in more than one participating municipality or
28 participating instrumentality, aggregate municipality charges
29 shall be prorated on a basis of the employee's earnings in
30 case of concurrent service and creditable service in other
31 cases.
32 2. Supplemental annuities shall be handled as a separate
33 annuity and amounts to be credited to the annuity reserve
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1 therefor shall be derived in the same manner as a regular
2 annuity.
3 3. When a retirement annuity is granted to an employee
4 with a spouse eligible for a surviving spouse annuity, there
5 shall be credited to the annuity reserve an amount to fund
6 the cost of both the retirement and surviving spouse annuity
7 as a joint and survivors annuity.
8 4. Beginning January 1, 1989, when a retirement annuity
9 is awarded, an amount equal to the present value of the
10 $3,000 or $5,000 death benefit payable upon the death of the
11 annuitant shall be transferred to the annuity reserve from
12 the appropriate municipality reserves in the same manner as
13 the transfer for annuities.
14 5. All annuity reserves shall be revalued annually as of
15 December 31. Beginning as of December 31, 1973, adjustment
16 required therein by such revaluation shall be charged or
17 credited to the earnings and experience variation reserve.
18 6. There shall be credited to the annuity reserve all of
19 the payments made by annuitants under Section 7-144.2, plus
20 an additional amount from the earnings and experience
21 variation reserve to fund the cost of the incremental
22 annuities granted to annuitants making these payments.
23 7. As of December 31, 1972, the excess in the annuity
24 reserve shall be transferred to the municipality reserves.
25 An amount equal to the deficiency in the reserve of
26 participating municipalities and participating
27 instrumentalities which have no participating employees shall
28 be allocated to their reserves. The remainder shall be
29 allocated in amounts proportionate to the present value, as
30 of January 1, 1972, of annuities of annuitants of the
31 remaining participating municipalities and participating
32 instrumentalities.
33 (Source: P.A. 89-136, eff. 7-14-95.)
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1 (40 ILCS 5/7-206) (from Ch. 108 1/2, par. 7-206)
2 Sec. 7-206. Death Reserve. All death benefit payments
3 shall be charged to the Death Reserve, other than the $3,000
4 or $5,000 death benefits paid after December 31, 1988 upon
5 the death of an annuitant. All contributions for death
6 purposes under Section 7-172(b)4 shall be credited to the
7 same reserve. Whenever the balance in such reserve at the
8 close of a year exceeds 100% of the average annual charges to
9 this account during the 3 preceding calendar years, the basic
10 actuarial assumptions upon which municipality contribution
11 rates for these purposes are based, shall be reviewed and
12 revised in such manner as is deemed necessary to reduce such
13 balance.
14 (Source: P.A. 89-136, eff. 7-14-95.)
15 Section 90. The State Mandates Act is amended by adding
16 Section 8.23 as follows:
17 (30 ILCS 805/8.23 new)
18 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
19 and 8 of this Act, no reimbursement by the State is required
20 for the implementation of any mandate created by this
21 amendatory Act of the 91st General Assembly.
22 Section 99. Effective date. This Act takes effect
23 January 1, 2001.