(40 ILCS 5/Art. 7 heading)
(40 ILCS 5/7-101) (from Ch. 108 1/2, par. 7-101)
Sec. 7-101.
Creation of fund.
A retirement and benefit fund to be known as the "Illinois Municipal
Retirement Fund" is hereby created.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-102) (from Ch. 108 1/2, par. 7-102)
Sec. 7-102.
Purpose.
The purpose of this fund is to provide a sound and
efficient system for
the payment of annuities and other benefits, in addition to the annuities
and benefits available, as herein provided, under the Federal Social
Security Act, to certain officers and employees, and to their
beneficiaries, of municipalities, as herein defined.
It is the mission of this Fund to efficiently and impartially develop,
implement and administer programs that provide income protection to members
and their beneficiaries on behalf of participating employers in a prudent
manner.
(Source: P.A. 87-740.)
(40 ILCS 5/7-103) (from Ch. 108 1/2, par. 7-103)
Sec. 7-103.
Terms defined.
The terms used in this Article have the meanings ascribed to them in
Sections 7-104 to 7-131, inclusive, except when the context otherwise
requires.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-104) (from Ch. 108 1/2, par. 7-104)
Sec. 7-104.
Fund.
"Fund": The Illinois Municipal Retirement Fund.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-105) (from Ch. 108 1/2, par. 7-105)
Sec. 7-105. "Municipality": A city, village, incorporated town, county,
township; a Financial Oversight Panel established pursuant to Article 1H of the School Code; and any school, park, sanitary, road forest preserve, water, fire
protection, public health, river conservancy, mosquito abatement,
tuberculosis sanitarium, public community college district, or other local
district with general continuous power to levy taxes on the property within
such district; now existing or hereafter created within the State; and, for
the purposes of providing annuities and benefits to its employees, the fund
itself.
(Source: P.A. 97-429, eff. 8-16-11.)
(40 ILCS 5/7-106) (from Ch. 108 1/2, par. 7-106)
Sec. 7-106.
Participating municipality.
"Participating municipality": Any municipality included within this fund
in accordance with Section 7-132.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-107) (from Ch. 108 1/2, par. 7-107)
Sec. 7-107.
Instrumentality.
"Instrumentality": Any body, corporate or politic, or any legal entity,
other than a municipality, having power to appropriate for, or to authorize
expenditures for, payment of earnings to employees from any fund or funds
derived in whole or in part from taxes, assessments, fees or other revenues
of a municipality; and, in counties, the several county fee offices.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-108) (from Ch. 108 1/2, par. 7-108)
Sec. 7-108. "Participating Instrumentality".
(a) A political entity created
under the laws of the State of Illinois, without general continuous power
to levy taxes, and which is legally separate and distinct from the State of
Illinois and any municipality and whose employees by reason of their
relation to such political entity are not employees of the State of
Illinois or a municipality; for the purposes of providing annuities and benefits to its employees, the Police Officers' Pension Investment Fund, as created under Article 22B of this Code; and for the purposes of providing annuities and benefits to its employees, the Firefighters' Pension Investment Fund, as created under Article 22C of this Code.
(b) A not-for-profit organization, which is incorporated under the laws
of the State of Illinois, or an association, membership in which is limited
to municipalities or limited to townships and authorized by statute.
(Source: P.A. 102-637, eff. 8-27-21.)
(40 ILCS 5/7-109) (from Ch. 108 1/2, par. 7-109)
Sec. 7-109. Employee.
(1) "Employee" means any person who:
(2) "Employee" does not include persons who:
(3) All persons, including, without limitation, public defenders and
probation officers, who receive earnings from general or special funds
of a county for performance of personal services or official duties
within the territorial limits of the county, are employees of the county
(unless excluded by subsection (2) of this Section) notwithstanding that
they may be appointed by and are subject to the direction of a person or
persons other than a county board or a county officer. It is hereby
established that an employer-employee relationship under the usual
common law rules exists between such employees and the county paying
their salaries by reason of the fact that the county boards fix their
rates of compensation, appropriate funds for payment of their earnings
and otherwise exercise control over them. This finding and this
amendatory Act shall apply to all such employees from the date of
appointment whether such date is prior to or after the effective date of
this amendatory Act and is intended to clarify existing law pertaining
to their status as participating employees in the Fund.
(Source: P.A. 102-15, eff. 6-17-21; 102-637, eff. 8-27-21; 102-813, eff. 5-13-22.)
(40 ILCS 5/7-109.1) (from Ch. 108 1/2, par. 7-109.1)
Sec. 7-109.1.
"Seasonal Employee":
An employee whose position normally
requires regular service during a period of at least 6 consecutive months,
but less than 12 months, in a 12 month period.
(Source: Laws 1967, p. 2091.)
(40 ILCS 5/7-109.2) (from Ch. 108 1/2, par. 7-109.2)
Sec. 7-109.2.
"Intermittent Employee":
An employee, whose position normally
requires service intermittently, rather than regularly, and a person whose
position normally requires regular service for a period of less than 6
consecutive months in a 12 month period.
(Source: Laws 1967, p. 2091.)
(40 ILCS 5/7-109.3) (from Ch. 108 1/2, par. 7-109.3)
Sec. 7-109.3. "Sheriff's Law Enforcement Employees".
(a) "Sheriff's law enforcement employee" or "SLEP" means:
(b) An employee who is a sheriff's law enforcement employee and is granted
military leave or authorized leave of absence shall receive service credit in
that capacity. Sheriff's law enforcement employees shall not be entitled to
out-of-State service credit under Section 7-139.
(Source: P.A. 100-354, eff. 8-25-17; 100-1097, eff. 8-26-18.)
(40 ILCS 5/7-109.4)
Sec. 7-109.4. Tier 1 regular employee. "Tier 1 regular employee" means a participant or an annuitant under this Article who first became a participant or member before January 1, 2011 under any retirement system or pension fund under this Code, other than a retirement system or pension fund established under Articles 2, 3, 4, 5, 6, or 18 or in any self-managed plan established under this Code, or the retirement plan established under Section 22-101.
"Tier 1 regular employee" includes a person who received a separation benefit but is otherwise qualified under this Section and subsequently becomes a participating employee on or after January 1, 2011.
"Tier 1 regular employee" includes a former participating employee who received a separation benefit under Section 7-167 for service earned prior to January 1, 2011 who returns to a qualifying position after January 1, 2011.
"Tier 1 regular employee" includes a participating employee who has omitted service as defined in Section 7-111.5 that includes any period prior to January 1, 2011 only if he or she establishes sufficient service credit under item (12) of subsection (a) of Section 7-139 to include service prior to January 1, 2011.
Notwithstanding anything contrary in this Section, "Tier 1 regular employee" does not include a participant or annuitant who is eligible to have his or her annuity calculated under Section 7-142.1 or a person who elected to establish alternative credits under Section 7-145.1.
(Source: P.A. 102-210, eff. 1-1-22.)
(40 ILCS 5/7-109.5)
Sec. 7-109.5. Tier 2 regular employee. "Tier 2 regular employee" means a person who first becomes a participant under this Article on or after January 1, 2011 and is not a Tier 1 regular employee.
Notwithstanding anything contrary in this Section, "Tier 2 regular employee" does not include a participant or annuitant who is eligible to have his or her annuity calculated under Section 7-142.1 or a person who elected to establish alternative credits by electing in writing after January 1, 2011, but before August 8, 2011, under Section 7-145.1 of this Code.
(Source: P.A. 102-210, eff. 1-1-22.)
(40 ILCS 5/7-110) (from Ch. 108 1/2, par. 7-110)
Sec. 7-110.
Participating employee.
"Participating employee": Any person included within this fund, and
eligible to benefits therefrom, as provided in Section 7-137.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-111) (from Ch. 108 1/2, par. 7-111)
Sec. 7-111.
"Prior Service":
The period beginning on the day a
participating employee first became an employee of a municipality, or of an
instrumentality thereof, or of a municipality or instrumentality that was
superseded by the employing participating municipality, or of a participating
instrumentality, and ending on the effective date of participation of the
municipality or participating instrumentality, or upon the latest termination
of service prior to such effective date, but excluding (a) the intervening
periods during which the employee was separated from the service of the
municipality and all instrumentalities thereof, or of the participating
instrumentality, (b) periods during which the employee was employed
in a position normally requiring less than 600 hours of service during a year,
and (c) periods during which the employee served in a position normally
requiring
performance of duty less than 1000 hours per year, if the
participating municipality or participating instrumentality adopted, prior to
its effective date of participation, a resolution or ordinance
excluding persons in such positions from participation.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/7-111.5)
Sec. 7-111.5. "Omitted service": The period of service with a participating municipality or participating instrumentality during which an employee was required to participate in the Fund, but was not actually enrolled.
(Source: P.A. 98-932, eff. 8-15-14.)
(40 ILCS 5/7-112) (from Ch. 108 1/2, par. 7-112)
Sec. 7-112.
"Current Service":
The period beginning on the day an employee
first becomes a participating employee and ending on the day of the latest
separation from service of all participating municipalities, and
instrumentalities thereof, and participating instrumentalities, but
excluding all intervening periods during which the employee was separated
from the service of all participating municipalities and instrumentalities
thereof, and participating instrumentalities.
(Source: Laws 1967, p. 2091.)
(40 ILCS 5/7-113) (from Ch. 108 1/2, par. 7-113)
Sec. 7-113.
"Creditable Service":
All periods of prior service or
current service for which credits are granted under the provisions of Section
7-139.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/7-114) (from Ch. 108 1/2, par. 7-114)
Sec. 7-114. Earnings. "Earnings":
(a) An amount to be determined by the board, equal to the sum of:
(b) For purposes of determining benefits payable under this fund
payments to a person who is engaged in an independently established
trade, occupation, profession or business and who is paid for his
service on a basis other than a monthly or other regular salary, are not
earnings.
(c) If a disabled participating employee is eligible to receive Workers'
Compensation for an accidental injury and the participating municipality or
instrumentality which employed the participating employee when injured
continues to pay the participating employee regular salary or other
compensation or pays the employee an amount in excess of the Workers'
Compensation amount, then earnings shall be deemed to be the total payments,
including an amount equal to the Workers' Compensation payments. These
payments shall be subject to employee contributions and allocated as if paid to
the participating employee when the regular payroll amounts would have been
paid if the participating employee had continued working, and creditable
service shall be awarded for this period.
(d) If an elected official who is a participating employee becomes disabled
but does not resign and is not removed from office, then earnings shall include
all salary payments made for the remainder of that term of office and the
official shall be awarded creditable service for the term of office.
(e) If a participating employee is paid pursuant to "An Act to provide for
the continuation of compensation for law enforcement officers, correctional
officers and firemen who suffer disabling injury in the line of duty", approved
September 6, 1973, as amended, the payments shall be deemed earnings, and the
participating employee shall be awarded creditable service for this period.
(f) Additional compensation received by a person while serving as a
supervisor of assessments, assessor, deputy assessor or member of a board of
review from the State of Illinois pursuant to Section 4-10 or 4-15 of the
Property Tax Code shall not be
earnings for purposes of this Article and shall not be included in the
contribution formula or calculation of benefits for such person pursuant to
this Article.
(g) Notwithstanding any other provision of this Article, calendar year earnings for Tier 2 regular employees to whom this Section applies shall not exceed the amount determined by the Public Pension Division of the Department of Insurance as required in this subsection; however, that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, including all previous adjustments.
For the purposes of this Section, "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the Fund by November 1 of each year.
(Source: P.A. 102-210, eff. 1-1-22.)
(40 ILCS 5/7-115) (from Ch. 108 1/2, par. 7-115)
Sec. 7-115.
Rate of earnings.
"Rate of earnings": The actual rate upon which the earnings of an
employee are calculated at any time, as certified in a written notice, on
file with the board, by the governing body of the municipality, or
instrumentality, or participating instrumentality. For periods during which
the employee did not participate but is entitled to creditable service,
the monthly earnings shall be considered to be the earnings in the position
for each calendar year divided by the number of months of creditable service
in that year.
(Source: P.A. 82-596.)
(40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
Sec. 7-116. "Final rate of earnings":
(a) For retirement and survivor annuities, the monthly earnings obtained
by dividing the total earnings received by the employee during the period of
either (1) for Tier 1 regular employees, the 48 consecutive months of service within the last 120 months of
service in which his total earnings were the highest, (2) for Tier 2 regular employees, the 96 consecutive
months of service within the last 120 months of service in
which his total earnings were the highest, or (3) the
employee's total period of service, by the number of months
of service in such period.
(b) For death benefits, the higher of the rate determined under
paragraph (a) of this Section or total earnings received in the last 12 months
of service divided by twelve. If the deceased employee has less than 12 months
of service, the monthly final rate shall be the monthly rate of pay the
employee was receiving when he began service.
(c) For disability benefits, the total earnings of a participating
employee in the last 12 calendar months of service prior to the date he
becomes disabled divided by 12.
(d) In computing the final rate of earnings: (1) the earnings rate for
all periods of prior service shall be considered equal to the average
earnings rate for the last 3 calendar years of prior service for
which creditable service is received under Section 7-139 or, if there is less than 3 years of
creditable prior service, the average for the total prior service period
for which creditable service is received under Section 7-139; (2) for out
of state service and authorized
leave, the earnings rate shall be the rate upon which service credits are
granted; (3) periods of military leave shall not be considered; (4) the
earnings rate for all periods of disability shall be considered equal to
the rate of earnings upon which the employee's disability benefits are
computed for such periods; (5) the earnings to be considered for each of
the final three months of the final earnings period for persons who first became participants before January 1, 2012 and the earnings to be considered for each of the final 24 months for participants who first become participants on or after January 1, 2012 shall not exceed 125%
of the highest earnings of any other month in the final earnings period;
and (6) the annual amount of final rate of earnings shall be the monthly
amount multiplied by the number of months of service normally required by
the position in a year.
(Source: P.A. 102-210, eff. 1-1-22.)
(40 ILCS 5/7-117) (from Ch. 108 1/2, par. 7-117)
Sec. 7-117.
Annuitant.
"Annuitant": A person receiving an annuity from this fund.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-118) (from Ch. 108 1/2, par. 7-118)
Sec. 7-118. "Beneficiary".
(a) "Beneficiary" means:
(b) Designations of
beneficiaries shall be in writing on forms prescribed by the board and
effective upon filing in the fund offices. The designation forms shall
provide for contingent beneficiaries. Divorce, dissolution or annulment
of marriage revokes the designation of an employee's former spouse as a
beneficiary on a designation executed before entry of judgment for divorce,
dissolution or annulment of marriage.
(Source: P.A. 96-1140, eff. 7-21-10.)
(40 ILCS 5/7-119) (from Ch. 108 1/2, par. 7-119)
Sec. 7-119.
Annuity.
"Annuity": A series of equal monthly payments, payable as of the first
day of each calendar month during the life of an annuitant, the first
payment to be made as of the first day of the calendar month coincidental
with or next following the date upon which the annuity begins, and the last
payment to be made as of the first day of the calendar month in which the
annuitant dies or the annuity is terminated.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-120) (from Ch. 108 1/2, par. 7-120)
Sec. 7-120.
Board.
"Board": The board of trustees of the fund.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-121) (from Ch. 108 1/2, par. 7-121)
Sec. 7-121.
"Governing body":
(a) the city council in cities; (b) the board
of trustees in villages or in incorporated towns; (c) the county board in
counties; (d) in townships, the electors for purposes of electing whether
the township shall participate and to appropriate funds and levy taxes for
municipal contributions, under Section 7-171, for the town and any other
bodies politic included as a part of the town under Section 7-132.1 and the
Board of Town Trustees for all other purposes; (e) the
corporate authority,
body or officers, as the case may be, authorized by law to levy taxes for
the maintenance and operation of the municipality in other municipalities;
(f) the person or group of persons having ultimate authority to expend
funds for the payment of earnings to employees in participating
instrumentalities; or, (g) the board itself.
(Source: P.A. 82-783.)
(40 ILCS 5/7-122) (from Ch. 108 1/2, par. 7-122)
Sec. 7-122.
Effective date.
"Effective date": The date the provisions of this fund become applicable
to any participating municipality and to all instrumentalities thereof and
to participating instrumentalities, as provided in Section 7-132.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-123) (from Ch. 108 1/2, par. 7-123)
Sec. 7-123.
Effective rate of interest.
"Effective rate of interest":
The interest rate determined by the Board for any calendar year which shall
distribute, to the extent reasonably determinable prior to the year for which
the rate is applicable, the current earnings (excluding capital gains) on
assets of the fund to reserves as provided by Section 7-209, after
due allowance is made for special reserve requirements under Section 7-208.
(Source: P.A. 91-357, eff. 7-29-99.)
(40 ILCS 5/7-124) (from Ch. 108 1/2, par. 7-124)
Sec. 7-124.
Prescribed rate of interest.
"Prescribed rate of interest": The rate of interest to be used for
calculation of the rates of municipality contributions and amounts of
annuities and benefits as determined by the board on the basis of the
probable effective rate of interest on a long term basis.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-125) (from Ch. 108 1/2, par. 7-125)
Sec. 7-125.
Federal Social Security Act.
"Federal Social Security Act": Title II of the Social Security Act of
August 14, 1935, 74th Congress, Ch. 531, 49 Stat. 620, 42 U.S. Code, Ch. 7,
Supp., as heretofore or hereafter amended.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-126) (from Ch. 108 1/2, par. 7-126)
Sec. 7-126.
Federal Insurance Contributions Act.
"Federal Insurance Contributions Act": Chapter 21 of Sub-title C of the
Internal Revenue Code of 1954, 83rd Congress, Public Law 591, Chap. 736,
approved August 16, 1954, as heretofore or hereafter amended.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-127) (from Ch. 108 1/2, par. 7-127)
Sec. 7-127.
Social Security Enabling Act.
"Social Security Enabling Act": Article 21 of the Illinois Pension Code,
as the same may from time to time be amended.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-128) (from Ch. 108 1/2, par. 7-128)
Sec. 7-128.
State agency.
"State agency": The Social Security Unit of the State Employees'
Retirement System of Illinois as defined in the Social Security Enabling
Act or any agency succeeding to the duties thereof.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-129) (from Ch. 108 1/2, par. 7-129)
Sec. 7-129.
Covered municipalities and participating instrumentalities.
"Covered municipalities and participating instrumentalities":
Municipalities and participating instrumentalities covered under the
Federal Social Security Act as provided in Section 7-136 hereof.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-130) (from Ch. 108 1/2, par. 7-130)
Sec. 7-130.
Covered employee.
"Covered employee": An employee covered under the Federal Social
Security Act as provided in Section 7-138 hereof.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-132)
(from Ch. 108 1/2, par. 7-132)
Sec. 7-132. Municipalities, instrumentalities and participating
instrumentalities included and effective dates.
(A) Municipalities and their instrumentalities.
(a) The following described municipalities, but not including any with
more than 1,000,000 inhabitants, and the instrumentalities thereof,
shall be included within and be subject to this Article beginning upon the
effective dates specified by the Board:
(b) A municipality that is about to begin participation shall submit to
the Board an application to participate, in a form acceptable to the Board,
not later than 90 days prior to the proposed effective date of
participation. The Board shall act upon the application within 90 days,
and if it finds that the application is in conformity with its requirements
and the requirements of this Article, participation by the applicant shall
commence on a date acceptable to the municipality and specified by the
Board, but in no event more than one year from the date of application.
(c) A participating municipality which succeeds to the functions
of a participating municipality which is dissolved or terminates its
existence shall assume and be transferred the net accumulation balance
in the municipality reserve and the municipality account receivable
balance of the terminated municipality.
(d) In the case of a Veterans Assistance Commission whose employees
were being treated by the Fund on January 1, 1990 as employees of the
county served by the Commission, the Fund may continue to treat the
employees of the Veterans Assistance Commission as county employees for
the purposes of this Article, unless the Commission becomes a participating
instrumentality in accordance with subsection (B) of this Section.
(B) Participating instrumentalities.
(a) The participating instrumentalities designated in
paragraph (b) of this subsection shall be included within
and be subject to this Article if:
The Board shall notify the applicant of its findings within 90 days
after receiving the application, and if the
Board approves the application, participation by the applicant shall
commence on the effective date specified by the Board.
(b) The following participating instrumentalities, so long as
they meet the requirements of Section 7-108 and the area served by them
or within their jurisdiction is not located entirely within a municipality
having more than one million inhabitants, may be included hereunder:
(c) The governing boards of special education joint agreements
created under Section 10-22.31 of the School Code without designation of an
administrative district shall be included within and be subject to this
Article as participating instrumentalities when the joint agreement becomes
effective. However, the governing board of any such special education
joint agreement in effect before September 5, 1975 shall not be subject to this
Article unless the joint agreement is modified by the school districts to
provide that the governing board is subject to this Article, except as
otherwise provided by this Section.
The governing board of the Special Education District of Lake County shall
become subject to this Article as a participating instrumentality on July 1,
1997. Notwithstanding subdivision (a)1 of Section 7-139, on the effective date
of participation, employees of the governing board of the Special Education
District of Lake County shall receive creditable service for their prior
service with that employer, up to a maximum of 5 years, without any employee
contribution. Employees may establish creditable service for the remainder
of their prior service with that employer, if any, by applying in writing and
paying an employee contribution in an amount determined by the Fund, based on
the employee contribution rates in effect at the time of application for the
creditable service and the employee's salary rate on the effective date of
participation for that employer, plus interest at the effective rate from the
date of the prior service to the date of payment. Application for this
creditable service must be made before July 1, 1998; the payment may be made
at any time while the employee is still in service. The employer may elect to
make the required contribution on behalf of the employee.
The governing board of a special education joint agreement created
under Section 10-22.31 of the School Code for which an administrative
district has been designated, if there are employees of the cooperative
educational entity who are not employees of the administrative district,
may elect to participate in the Fund and be included within this Article as
a participating instrumentality, subject to such application procedures and
rules as the Board may prescribe.
The Boards of Control of cooperative or joint educational programs or
projects created and administered under Section 3-15.14 of the School
Code, whether or not the Boards act as their own administrative district,
shall be included within and be subject to this Article as participating
instrumentalities when the agreement establishing the cooperative or joint
educational program or project becomes effective.
The governing board of a special education joint agreement entered into
after June 30, 1984 and prior to September 17, 1985 which provides for
representation on the governing board by less than all the participating
districts shall be included within and subject to this Article as a
participating instrumentality. Such participation shall be effective as of
the date the joint agreement becomes effective.
The governing boards of educational service centers established under
Section 2-3.62 of the School Code shall be included within and subject to
this Article as participating instrumentalities. The governing boards of
vocational education cooperative agreements created under the
Intergovernmental Cooperation Act and approved by the State Board of
Education shall be included within and be subject to this
Article as participating instrumentalities. If any such governing boards
or boards of control are unable to pay the required employer contributions
to the fund, then the school districts served by such boards shall make
payment of required contributions as provided in Section 7-172. The
payments shall be allocated among the several school districts in
proportion to the number of students in average daily attendance for the
last full school year for each district in relation to the total number of
students in average attendance for such period for all districts served.
If such educational service centers, vocational education cooperatives or
cooperative or joint educational programs or projects created and
administered under Section 3-15.14 of the School Code are dissolved, the
assets and obligations shall be distributed among the districts in the
same proportions unless otherwise provided.
The governing board of Paris Cooperative High School shall be included within and be subject to this
Article as a participating instrumentality on the effective date of this amendatory Act of the 96th General Assembly. If the governing board of Paris Cooperative High School is unable to pay the required employer contributions
to the fund, then the school districts served shall make
payment of required contributions as provided in Section 7-172. The
payments shall be allocated among the several school districts in
proportion to the number of students in average daily attendance for the
last full school year for each district in relation to the total number of
students in average attendance for such period for all districts served.
If Paris Cooperative High School is dissolved, then the
assets and obligations shall be distributed among the districts in the
same proportions unless otherwise provided.
The Philip J. Rock Center and School shall be included within and be subject to this Article as a participating instrumentality on the effective date of this amendatory Act of the 97th General Assembly. The Philip J. Rock Center and School shall certify to the Fund the dates of service of all employees within 90 days of the effective date of this amendatory Act of the 97th General Assembly. The Fund shall transfer to the IMRF account of the Philip J. Rock Center and School all creditable service and all employer contributions made on behalf of the employees for service at the Philip J. Rock Center and School that were reported and paid to IMRF by another employer prior to this date. If the Philip J. Rock Center and School is unable to pay the required employer contributions to the Fund, then the amount due will be paid by all employers as defined in item (2) of paragraph (a) of subsection (A) of this Section. The payments shall be allocated among these employers in proportion to the number of students in average daily attendance for the last full school year for each district in relation to the total number of students in average attendance for such period for all districts. If the Philip J. Rock Center and School is dissolved, then its IMRF assets and obligations shall be distributed in the same proportions unless otherwise provided.
Financial Oversight Panels established under Article 1H of the School Code shall be included within and be subject to this Article as a participating instrumentality on the effective date of this amendatory Act of the 97th General Assembly. If the Financial Oversight Panel is unable to pay the required employer contributions to the fund, then the school districts served shall make payment of required contributions as provided in Section 7-172. If the Financial Oversight Panel is dissolved, then the assets and obligations shall be distributed to the district served.
(d) The governing boards of special recreation joint agreements
created under Section 8-10b of the Park District Code, operating
without
designation of an administrative district or an administrative
municipality appointed to administer the program operating under the
authority of such joint agreement shall be included within and be
subject to this Article as participating instrumentalities when the
joint agreement becomes effective. However, the governing board of any
such special recreation joint agreement in effect before January 1,
1980 shall not be subject to this Article unless the joint agreement is
modified, by the districts and municipalities which are parties to the
agreement, to provide that the governing board is subject to this Article.
If the Board returns any employer and employee contributions to any
employer which erroneously submitted such contributions on behalf of a
special recreation joint agreement, the Board shall include interest
computed from the end of each year to the date of payment, not compounded,
at the rate of 7% per annum.
(e) Each multi-township assessment district, the board of
trustees of which has adopted this Article by ordinance prior to April 1,
1982, shall be a participating instrumentality included within and subject
to this Article effective December 1, 1981. The contributions required
under Section 7-172 shall be included in the budget prepared under and
allocated in accordance with Section 2-30 of the Property Tax Code.
(f) The Illinois Medical District Commission created under the Illinois Medical District Act may be included within and subject to
this Article as a participating instrumentality, notwithstanding that the location of the District is entirely within the City of Chicago. To become a participating instrumentality, the Commission must apply to the Board in the manner set forth in paragraph (a) of this subsection (B). If the
Board approves the application, under the criteria and procedures set forth in paragraph (a) and any other applicable rules, criteria, and procedures of the Board, participation by the Commission shall
commence on the effective date specified by the Board.
(C) Prospective participants.
Beginning January 1, 1992, each prospective participating
municipality or participating instrumentality shall pay to the Fund the
cost, as determined by the Board, of a study prepared by the Fund or its
actuary, detailing the prospective costs of participation in the Fund to be
expected by the municipality or instrumentality.
(Source: P.A. 102-637, eff. 8-27-21.)
(40 ILCS 5/7-132.1) (from Ch. 108 1/2, par. 7-132.1)
Sec. 7-132.1.
Towns - Election to participate.
For purposes of this Article, a town which is not a participating
municipality on the effective date of this Act, shall be considered to
include the town itself and all other bodies politic heretofor or hereafter
established by or subject to the direct or indirect control of the town
electors. As so defined, a town may participate in the Fund, on the first
day of January after the year in which a valid participation ordinance, adopted by the town electors, has been filed with
the Board. The following procedures shall govern adoption of a participation
ordinance by the town electors:
Upon the filing of the ordinance, for the purpose of providing benefits
to their employees and their survivors, the town and the other bodies
politic, whether or not they were participating municipalities, shall be
considered and deemed to be a single municipality. It is declared to be the
policy of the State, that since the town and the other bodies politic serve
the same geographical area, that for the purposes of this Article they are
properly designated as a single municipality.
No town may elect to participate in this Fund except as provided in this
Section. In any town which has not elected to participate in the Fund on
the effective date of this Act, no body politic established by or subject
to the control of the town electors may elect to participate in the Fund,
except as a part of the town as provided in this Section.
(Source: P.A. 91-357, eff. 7-29-99.)
(40 ILCS 5/7-132.2) (from Ch. 108 1/2, par. 7-132.2)
Sec. 7-132.2.
Regional office of education.
(a) A regional office of education serving 2 or more counties, except those serving a county of 1,000,000 inhabitants or more, formed pursuant to
Article 3A of the School Code shall be included within and be subject to this
Article, effective as of the effective date of consolidation. For the purpose
of this Article, a regional office of education serving 2 or more counties shall be considered a
participating instrumentality but the requirements of Sections 7-106 and 7-132
shall not apply to it. Each county served by a regional office of education
that serves 2 or more
counties shall pay its proportional cost of the office's
municipality contributions. This cost shall be included in the budget prepared
under and apportioned in the manner provided by Section 3A-7 of the School
Code. Each county may include the cost for its share of the municipality
contributions required for the regional office of education in
its appropriation and tax levy under Section 7-171 of this Article.
(b) At the request of the county, the Board may designate any
participating regional office of education
to be a separate reporting entity distinct from the county.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/7-132.3) (from Ch. 108 1/2, par. 7-132.3)
Sec. 7-132.3.
The EDC Foundation of Chicago.
The EDC
Foundation of Chicago, an Illinois not-for-profit
corporation, may participate in the Fund and become subject to this Article as follows:
(1) By October 1 of the year preceding the year in which participation
is to begin, the Foundation may, with the authorization of at least
two-thirds of the members of its governing body, file an application with the Board.
(2) The Board shall review the application to determine whether it is in
conformity with the provisions of this Article. Along with such other
provisions as the Board may require, the application shall include a
demonstration that (i) the Foundation has a reasonable expectation of
continuing in existence for at least 10 years, and (ii) the Foundation has
the prospective financial capacity to enable it to meet its current and
future obligations to the Fund. Such financial capacity may be established
by evidence of a contractual commitment by the City of Chicago to assume or
guarantee any unpaid obligations of the Foundation to the Fund, or by the
Foundation entering into an agreement with the Board to pay annually to the
Fund any actuarially determined unfunded obligation relating to the
Foundation, in addition to the employer contributions required under Section 7-172.
(3) If the Board determines that the application is in conformity with
the requirements of this Article, and that participation by the Foundation
would not reasonably be expected to impair the actuarial soundness of the
Fund, it shall approve the application.
If the application is approved, the Foundation's employees shall begin
participation on the following January 1, and the Foundation shall
thereupon become a participating instrumentality for the purposes of Section 7-172.
(Source: P.A. 86-272.)
(40 ILCS 5/7-134) (from Ch. 108 1/2, par. 7-134)
Sec. 7-134.
Municipality referendum and notice of election to
participate.
(a) A municipality electing to be included within this Article by
referendum shall hold such referendum within the territory of the municipality
following the filing of a written petition of at least 300 legal voters
or at least 1% of the legal voters of the municipality, whichever is less.
The question shall be certified to the proper election officials, who
shall submit the question to the voters at an election in accordance with
the general election law.
If a majority of the voters who vote upon
this question vote for inclusion of the
municipality, notice of the election to be included shall be given as
provided in this section and the municipality shall thereupon be so
included.
The proposition shall be in substantially the following form:
--------------------------------------------------------------
Shall the....(here name the
municipality or municipalities in which YES
the question is being voted upon) be
included within the provisions of Article -------------------
7 of the Illinois Pension Code, as
amended, pertaining to the creation of the NO
"Illinois Municipal Retirement Fund"?
--------------------------------------------------------------
Where the boundaries of 2 or more municipalities are coextensive, one
ballot is sufficient for all municipalities specified in the ballot.
(b) A municipality electing to participate shall within 10 days
after the election submit to the board a certified notice of the
election to participate. The notice shall:
1. Be in writing,
2. Indicate the date of the election,
3. Specify all the instrumentalities of the municipality,
4. Be officially certified by the clerk or other proper official of
the municipality as having been duly made in accordance with the
provisions of this Article.
(Source: P.A. 81-1535.)
(40 ILCS 5/7-135) (from Ch. 108 1/2, par. 7-135)
Sec. 7-135. Authorized agents.
(a) Each participating municipality and participating
instrumentality shall appoint an authorized agent who shall have the
powers and duties set forth in this section. In absence of such
appointment, the duties of the authorized agent shall devolve upon the
clerk or secretary of the municipality or instrumentality, the township supervisor in the case of a township, and in the
case of township school trustees upon the township school treasurer.
(b) The authorized agent shall have the following powers and duties:
(c) The governing body of each participating municipality and
participating instrumentality may delegate any or all of the following
powers and duties to its authorized agent:
If a governing body does not authorize its agent to perform the
powers and duties set forth in this paragraph (c), they shall be
performed by the governing body itself, unless the governing body by
resolution duly certified to the fund delegates them to some other
officer or employee.
(d) The delivery of any communication or document by an employee or
a participating municipality or participating instrumentality to its
authorized agent shall not constitute delivery to the fund.
(Source: P.A. 97-328, eff. 8-12-11; 97-609, eff. 1-1-12; 98-218, eff. 8-9-13.)
(40 ILCS 5/7-135.5)
Sec. 7-135.5. Required public posting of information by the Fund.
(a) The Fund shall post on its publicly available website the following information regarding municipalities that participate in the Fund that the Fund has in its possession: (1) copies of all resolutions adopted by a municipality on or after January 1, 1995 to participate in the Fund if such a resolution was required; (2) an annual report listing each municipality and the date each municipality first became a municipality that participates in the Fund; (3) all documents pertaining to each municipality's annual projected future contributions under this Article; and (4) information about the amount of each municipality's past required contributions to the Fund for each year of participation on or after January 1, 1995 and before, if available.
(b) A municipality that has a website shall post to its website, no later than January 1, 2021, a link to the information provided by the Fund under this Section. A municipality that establishes a website on or after January 1, 2021 shall post to its website a link to the information provided by the Fund under this Section.
(c) This Section does not require the Fund to post on its website information that is exempt from disclosure under the Freedom of Information Act.
This Section does not require a municipality to establish or maintain a website.
(Source: P.A. 101-504, eff. 7-1-20.)
(40 ILCS 5/7-136) (from Ch. 108 1/2, par. 7-136)
Sec. 7-136.
Municipalities and participating instrumentalities covered under the
Federal Social Security Act and effective dates.
Subject to the provisions of the Agreement with the State Agency as
provided in Section 7-170, the following described municipalities
(including all instrumentalities thereof), and participating
instrumentalities shall be considered covered under the Federal Social
Security Act and shall be subject to this Article pertaining to covered
municipalities and participating instrumentalities beginning upon the
effective dates hereinafter specified:
(a) All municipalities (and instrumentalities thereof) and participating
instrumentalities participating on December 31, 1957 shall be covered as of
January 1, 1956;
(b) All municipalities (and instrumentalities thereof) and participating
instrumentalities that begin participation after December 31, 1957, shall
be considered covered as of the effective date of participation.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-137) (from Ch. 108 1/2, par. 7-137)
Sec. 7-137. Participating and covered employees.
(a) The persons described in this paragraph (a) shall be included within
and be subject to this Article and eligible to benefits from this fund,
beginning upon the dates hereinafter specified:
(b) The following described persons shall not be considered
participating employees eligible for benefits from this fund, but shall
be included within and be subject to this Article (each of the
descriptions is not exclusive but is cumulative):
(c) Any person electing to be a participating employee, pursuant to
paragraph (b) of this Section may not change such election,
except as provided in Section 7-137.1.
(d) Any employee who occupied the position of school nurse in any
participating municipality on August 8, 1961 and continuously thereafter
until the effective date of the exercise of the option authorized by
this subparagraph, who on August 7, 1961 was a member of the Teachers'
Retirement System of Illinois, by virtue of certification by the
Department of Registration and Education as a public health nurse, may
elect to terminate participation in this Fund in order to re-establish
membership in such System. The election may be exercised by filing
written notice thereof with the Board or with the Board of Trustees of
said Teachers' Retirement System, not later than September 30, 1963, and
shall be effective on the first day of the calendar month next following
the month in which the notice was filed. If the written notice is filed
with such Teachers' Retirement System, that System shall immediately
notify this Fund, but neither failure nor delay in notification shall
affect the validity of the employee's election. If the option is
exercised, the Fund shall notify such Teachers' Retirement System of
such fact and transfer to that system the amounts contributed by the
employee to this Fund, including interest at 3% per annum, but excluding
contributions applicable to social security coverage during the period
beginning August 8, 1961 to the effective date of the employee's
election. Participation in this Fund as to any credits on or after
August 8, 1961 and up to the effective date of the employee's election
shall terminate on such effective date.
(e) Any participating municipality or participating instrumentality,
other than a school district or special education joint agreement created
under Section 10-22.31 of the School Code, may, by a resolution or
ordinance duly adopted by its governing body, elect to exclude from
participation and eligibility for benefits all persons who are employed
after the effective date of such resolution or ordinance and who occupy an
office or are employed in a position normally requiring performance of duty
for less than 1000 hours per year for the participating municipality
(including all instrumentalities thereof) or participating instrumentality
except for persons employed in a position normally requiring performance of
duty for 600 hours or more per year (i) by such participating municipality
or participating instrumentality prior to the effective date of the
resolution or ordinance and (ii) by a
participating municipality or participating instrumentality, which had not
adopted such a resolution when the person was employed, and the function
served by the employee's position is assumed by another participating
municipality or participating instrumentality. Notwithstanding
the foregoing, a participating municipality or participating
instrumentality which is formed solely to succeed to the functions of a
participating municipality or participating instrumentality shall be
considered to have adopted any such resolution or ordinance which may have
been applicable to the employees performing such functions. The election
made by the resolution or ordinance shall take effect at the time specified
in the resolution or ordinance, and once effective shall be irrevocable.
(Source: P.A. 99-900, eff. 8-26-16; 100-274, eff. 1-1-18.)
(40 ILCS 5/7-137.1) (from Ch. 108 1/2, par. 7-137.1)
Sec. 7-137.1.
Elected officials.
(a) A person holding an elective office who has elected
to participate in the Fund while in that office may revoke that election
and cease participating in the Fund by notifying the Board in writing
before January 1, 1992.
Upon such revocation, the person shall forfeit all creditable service
earned while holding that office, and the Board shall refund to the person,
without interest, all employee contributions paid for the forfeited
creditable service. The Board shall also refund or credit to the employing
municipality, without interest, the employer contributions relating to the
forfeited service, except those for death and disability.
(b) Notwithstanding the provisions of Sections 7-141 and 7-144,
beginning January 1, 1992, a person who holds an elective office and has
not elected to participate in the Fund with respect to that office (or has
revoked his election to participate with respect to that office under
subsection (a) of this Section) shall not be disqualified from receiving a
retirement annuity by reason of holding such office, provided that the
annuity is not based on any credits received for participating while
holding that office.
(Source: P.A. 87-740.)
(40 ILCS 5/7-137.2)
Sec. 7-137.2. Participation by elected members of county boards.
(a) An elected member of a county board is not eligible to participate in the Fund with respect to that position unless the county board has adopted a resolution, after public debate and in a form acceptable to the Fund, certifying that persons in the position of elected member of the county board are expected to work at least 600 hours annually (or 1000 hours annually in a county that has adopted a resolution pursuant to subsection (e) of Section 7-137 of this Code). The resolution must be adopted and filed with the Fund no more than 90 days after each general election in which a member of the county board is elected.
(b) An elected member of a county board that participates in the Fund with respect to that position shall monthly submit, to the county fiscal officer, time sheets documenting the time spent on official government business as an elected member of the county board. The time sheets shall be (1) submitted on paper or electronically, or both, and (2) maintained by the county board for 5 years. An elected member of a county board who fails to submit time sheets or fails to conduct official government business with respect to that position for either 600 hours or 1000 hours (whichever is applicable) annually shall not be permitted to continue participation in the Fund as an elected member of a county board. The Fund may request that the governing body certify that an elected member of a county board is permitted to continue participation with respect to that position.
(Source: P.A. 99-900, eff. 8-26-16.)
(40 ILCS 5/7-138) (from Ch. 108 1/2, par. 7-138)
Sec. 7-138.
Employees covered under the Federal Social Security Act and
effective dates.
Subject to the Agreement with the State Agency as described in Section
7-170, the following described employees of covered municipalities and of
covered participating instrumentalities shall be considered covered under
the Federal Social Security Act and shall be subject to the provisions of
this Article pertaining to covered employees beginning upon the effective
dates hereinafter specified:
(a) Each person who was an employee of a municipality or participating
instrumentality covered as of January 1, 1956, and employed by such
municipality or participating instrumentality on December 31, 1957, shall
be considered a covered employee as of January 1, 1956, or the date
employment with such municipality or participating instrumentality began,
whichever is later;
(b) Each person who was an employee of a municipality or participating
instrumentality covered as of January 1, 1956, who was not employed by such
municipality or participating instrumentality on December 31, 1957, shall
be considered a covered employee as of the first date of employment after
such date;
(c) Each person who was an employee of a municipality or participating
instrumentality becoming covered after December 31, 1957, shall be
considered a covered employee on the date the municipality or participating
instrumentality becomes a covered municipality or participating
instrumentality or on the first date of employment, whichever is later;
(d) Each person who performs service for a municipality or participating
instrumentality defined as covered transportation service under Section 210
of the Federal Social Security Act if he (1) meets the requirements of
Section 7-137 of this Act, (2) is employed by a municipality or
participating instrumentality which has elected to participate and has been
accepted for participation, and (3) is subject to the Federal Insurance
Contributions Act, shall be considered a covered employee for the purpose
of computing benefits under this Article, but no contributions need be made
for Social Security purposes under this Article so long as contributions
are being made under the Federal Insurance Contributions Act in respect to
such service.
(Source: P.A. 78-811.)
(40 ILCS 5/7-139) (from Ch. 108 1/2, par. 7-139)
Sec. 7-139. Credits and creditable service to employees.
(a) Each participating employee shall be granted credits and creditable
service, for purposes of determining the amount of any annuity or benefit
to which he or a beneficiary is entitled, as follows:
(b) Creditable service - amount:
(c) No application for correction of credits or creditable service shall
be considered unless the board receives an application for correction while
(1) the applicant is a participating employee and in active employment
with a participating municipality or instrumentality, or (2) while the
applicant is actively participating in a pension fund or retirement
system which is a participating system under the Retirement Systems
Reciprocal Act. A participating employee or other applicant shall not be
entitled to credits or creditable service unless the required employee
contributions are made in a lump sum or in installments made in accordance
with board rule. Payments made to establish service credit under paragraph 1, 4, 5, 5.1, 6, 7, or 12 of subsection (a) of this Section must be received by the Board while the applicant is an active participant in the Fund or a reciprocal retirement system, except that an applicant may make one payment after termination of active participation in the Fund or a reciprocal retirement system.
(d) Upon the granting of a retirement, surviving spouse or child
annuity, a death benefit or a separation benefit, on account of any
employee, all individual accumulated credits shall thereupon terminate.
Upon the withdrawal of additional contributions, the credits applicable
thereto shall thereupon terminate. Terminated credits shall not be applied
to increase the benefits any remaining employee would otherwise receive under
this Article.
(Source: P.A. 100-148, eff. 8-18-17; 101-492, eff. 8-23-19.)
(40 ILCS 5/7-139.1) (from Ch. 108 1/2, par. 7-139.1)
Sec. 7-139.1.
General Assembly transfers and credits.
(a) Any active member of the General Assembly Retirement System (and
until February 1, 1993, any former member of that System who has not yet
retired) may apply for transfer of his credits and creditable service
accumulated under this Fund to the General Assembly System. Also, any
active member of the State Employees' Retirement System of Illinois who is
an officer of the General Assembly may apply for a similar transfer from
this Fund, provided that such member received credit under this Fund as an
elected county officer. Such credits and creditable service shall be
transferred forthwith. Payment by this Fund to the General Assembly System
or the State Employees' Retirement System shall be made at the same time
and shall consist of:
Participation in this Fund as to any credits transferred under this
Section shall terminate on the date of transfer.
(b) An active member of the General Assembly Retirement System (and
until February 1, 1993, any former member of that System who has not yet
retired) who has service credits and creditable service under the Fund may
establish additional service credits and creditable service for periods
during which he was an elected official and could have elected to
participate but did not so elect. Service credits and creditable service
may be established by payment to the fund of an amount equal to the
contributions he would have made if he had elected to participate, plus
interest to the date of payment. The limitations in subparagraph (c) of
Section 7-139 of this Article shall not apply to payments made under this
Section.
(c) An active member of the General Assembly Retirement System (and
until February 1, 1993, any former member of that System who has not yet
retired) may reinstate service and service credits terminated upon receipt
of a separation benefit, by payment to the Fund of the amount of the
separation benefit plus interest thereon to the date of payment.
(Source: P.A. 87-794.)
(40 ILCS 5/7-139.1a)
Sec. 7-139.1a. Transfer from Article 3. On and after July 1, 2022 but no later than January 1, 2023, a participating sheriff's law enforcement employee may elect to transfer up to 10 years of service credit to the Fund as set forth in Section 3-110.14. To establish creditable service under this Section, the sheriff's law enforcement employee may elect to do either of the following:
Notwithstanding the amount transferred by the Article 3 fund pursuant to Section 3-110.14, in no event shall the service credit established under this Section exceed the lesser of 10 years or the actual amount of service credit that had been earned in the Article 3 fund. If an amount greater than the amount described under paragraph (1) is transferred to the Fund, the additional amount shall be credited to the account of the sheriff's law enforcement employee's employer.
(Source: P.A. 102-1061, eff. 6-10-22.)
(40 ILCS 5/7-139.2) (from Ch. 108 1/2, par. 7-139.2)
Sec. 7-139.2. Validation of service credits. An active member of the General Assembly having no service credits or
creditable service in the Fund, may establish service credit and
creditable service for periods during which he was an employee of a
municipality in an elective office and could have elected to participate
in the Fund but did not so elect. Service credits and creditable service
may be established by payment to the Fund of an amount equal to the
contributions he would have made
if he had elected to participate plus
interest to the date of payment, together with the applicable
municipality credits including interest, but the total period of such
creditable service that may be validated shall not exceed 8 years. Payments made to establish such service credit must be received by the Board while the member is an active participant in the General Assembly Retirement System, except that one payment will be permitted after the member terminates such service.
(Source: P.A. 100-148, eff. 8-18-17.)
(40 ILCS 5/7-139.3) (from Ch. 108 1/2, par. 7-139.3)
Sec. 7-139.3.
Validation of service credits.
An active member of the General Assembly having no service credits or
creditable service in the Fund may establish service credit and
creditable service for periods during which he held an elective office
in a municipality but could not participate in the Fund because the
municipality was not a participant in the Fund. Service credits and
creditable service may be established by payment to the Fund of an
amount equal to the contributions he would have made if he had
participated, with interest to the date of payment, together with the
applicable municipality credits with interest.
(Source: P.A. 81-1536.)
(40 ILCS 5/7-139.4) (from Ch. 108 1/2, par. 7-139.4)
Sec. 7-139.4.
Termination of participation as an employee.
Any
participating employee who is an active member of the General Assembly
on or after November 20, 1979 may, upon written application to the
Board within 90 days of that date or of becoming an active member of
the General Assembly, whichever is later, terminate his participation as
an employee in this fund. Any person who has terminated his
participation as an employee under this Section and has continued the
employment upon which such employee status has been based may revoke
that termination after it has been in effect at least one year by filing
a notice of the revocation with the Board. Any such person may then
establish service credit and creditable service for any period of
service during which the termination of participation was in effect by
paying into the fund, within 6 months after revoking the termination of
participation, an amount equal to the employee contributions which would have
been required during the period for which the termination was
in effect together with interest thereon at 6% per annum compounded
annually.
(Source: P.A. 81-1536.)
(40 ILCS 5/7-139.5) (from Ch. 108 1/2, par. 7-139.5)
Sec. 7-139.5.
(a) Persons otherwise required or eligible to participate
in the Fund who elect to continue participation in the General Assembly
System under Section 2-117.1 may not participate in the Fund for the duration
of such continued participation under Section 2-117.1.
(b) Upon terminating such continued participation, a person may transfer
credits and creditable service accumulated under Section 2-117.1 to this
Fund, upon payment to the Fund of (1) the amount by which the employer
and employee contributions that would have been required if he had participated
in this Fund during the period for which credit under Section 2-117.1 is
being transferred, plus interest, exceeds the amounts actually transferred
under that Section to the Fund, plus (2) interest thereon at 6% per annum
compounded annually from the date of such participation to the date of payment.
(Source: P.A. 82-342.)
(40 ILCS 5/7-139.6) (from Ch. 108 1/2, par. 7-139.6)
Sec. 7-139.6.
Transfer of creditable service to Article 8, 9 or 13 fund.
(a) Any city officer as defined in Section 8-243.2 of this Code,
any county officer elected by vote of the people who is
a participant in a pension fund established under Article 9 of this Code,
any chief of the County Police Department or undersheriff of the County
Sheriff's Department who has elected under subparagraph (j) of Section 9-128.1
to be included within the provisions of Section 9-128.1 of Article 9 of this
Code, and any elected sanitary district commissioner who is a participant in
a pension fund established under Article 13 of this Code, may apply for
transfer of his credits and creditable service accumulated in this Fund to
such Article 8, 9 or 13 fund. Such creditable service shall be
transferred forthwith. Payment by this Fund to the Article 8, 9 or 13
fund shall be made at the same time and shall consist of:
(b) Any such elected city officer, county officer, chief of the County
Police Department, undersheriff of the County Sheriff's Department, or
sanitary
district commissioner who has credits and creditable service under the Fund
may establish additional credits and creditable service for periods during
which he could have elected to participate but did not so elect. Credits
and creditable service may be established by payment to the Fund of an
amount equal to the contributions he would have made if he had elected to
participate, plus interest thereon to the date of payment. The limitations
in subparagraph (c) of Section 7-139 of this Article shall not
apply to payments made under this Section.
(c) Any such elected city officer, county officer, chief of the County
Police Department, undersheriff of the County Sheriff's Department, or
sanitary district commissioner may reinstate credits and creditable service
terminated upon receipt of a separation benefit, by payment to
the Fund of the amount of the separation benefit plus interest thereon at
the rate of 6% per year to the date of payment.
(Source: P.A. 89-643, eff. 8-9-96.)
(40 ILCS 5/7-139.7)
Sec. 7-139.7. (Repealed).
(Source: P.A. 87-1265. Repealed by P.A. 98-932, eff. 8-15-14.)
(40 ILCS 5/7-139.8) (from Ch. 108 1/2, par. 7-139.8)
Sec. 7-139.8. Transfer to Article 14 System.
(a) Any active member of the State Employees' Retirement System who is a State policeman, an investigator for the Secretary of State, a conservation police officer, an investigator for the Office of the Attorney General, an investigator for the Department of Revenue, an investigator for the Illinois Gaming Board, an arson investigator, a Commerce Commission police officer, an
investigator for the Office of the State's Attorneys Appellate Prosecutor,
or a controlled substance inspector
may apply for transfer of some or all of his or her credits and creditable service
accumulated in this Fund for service as a sheriff's law enforcement
employee, person employed by a participating municipality to perform police duties, or law enforcement officer employed on a full-time basis by a forest preserve district to the State Employees' Retirement System in accordance with
Section 14-110. The creditable service shall be transferred only upon payment
by this Fund to the State Employees' Retirement System of an amount equal to:
(b) Any person applying to transfer service under this Section may reinstate credits and
creditable service terminated upon receipt of a separation benefit, by paying
to the Fund the amount of the separation benefit plus interest thereon at the actuarially assumed rate of interest
to the date of payment.
(Source: P.A. 102-210, eff. 7-30-21; 102-856, eff. 1-1-23.)
(40 ILCS 5/7-139.9)
Sec. 7-139.9. (Repealed).
(Source: P.A. 90-460, eff. 8-17-97. Repealed by P.A. 98-932, eff. 8-15-14.)
(40 ILCS 5/7-139.10)
Sec. 7-139.10. Transfer to Article 4 pension fund. A person who has elected under Section 4-108.4 to become an
active participant in a firefighter pension fund established under Article 4 of
this Code may apply for transfer to that Article 4 fund of his or her
creditable service accumulated under this Article for municipal firefighter
service. At the time of the transfer, the Fund
shall pay to the firefighter pension fund an amount equal to:
Participation in this fund with respect to the transferred credits shall
terminate on the date of transfer.
For the purpose of this Section, "municipal firefighter service" means
service with the fire department of a participating municipality for which the
applicant
established
creditable service under this Article.
(Source: P.A. 93-689, eff. 7-1-04.)
(40 ILCS 5/7-139.11)
Sec. 7-139.11. (Repealed).
(Source: P.A. 95-1036, eff. 2-17-09. Repealed by P.A. 98-932, eff. 8-15-14.)
(40 ILCS 5/7-139.12)
Sec. 7-139.12. Transfer of creditable service to Article 14. A person employed by the Chicago Metropolitan Agency for Planning (formerly the Regional Planning Board) on the effective date of this Section who was a member of the State Employees' Retirement System of Illinois as an employee of the Chicago Area Transportation Study may apply for transfer of his or her creditable service as an employee of the Chicago Metropolitan Agency for Planning upon payment of (1) the amounts accumulated to the credit of the applicant for such service on the books of the Fund on the date of transfer and (2) the corresponding municipality credits, including interest, on the books of the Fund on the date of transfer. Participation in this Fund with respect to the transferred credits shall terminate on the date of transfer.
(Source: P.A. 95-677, eff. 10-11-07; 95-876, eff. 8-21-08.)
(40 ILCS 5/7-139.13)
Sec. 7-139.13. (Repealed).
(Source: P.A. 97-273, eff. 8-8-11. Repealed by P.A. 98-932, eff. 8-15-14.)
(40 ILCS 5/7-139.14)
(Text of Section from P.A. 102-857)
Sec. 7-139.14. Transfer to Article 3 pension fund.
(a) Within 6 months after July 23, 2021 (the effective date of Public Act 102-113), an active member of a pension fund established under Article 3 of this Code may apply for transfer to that Article 3 pension fund of his or her credits and creditable service accumulated in this Fund for service as a sheriff's law enforcement employee, person employed by a participating municipality to perform police duties, or law enforcement officer employed on a full-time basis by a forest preserve district. The creditable service shall be transferred only upon payment by this Fund to such Article 3 pension fund of an amount equal to:
Within 6 months after the effective date of this amendatory Act of the 102nd General Assembly, an active member of a pension fund established under Article 3 of this Code may apply for transfer to that Article 3 pension fund of his or her credits and creditable service accumulated in this Fund for service as a county correctional officer or as a person employed by a participating municipality to perform administrative duties related to law enforcement. The creditable service shall be transferred only upon payment by this Fund to such Article 3 pension fund of an amount equal to:
Participation in this Fund as to any credits transferred under this Section shall terminate on the date of transfer.
(b) Notwithstanding any other provision of this Code, any person applying to transfer service under this Section may reinstate credits and creditable service terminated upon receipt of a separation benefit by paying to the Fund the amount of the separation benefit plus interest thereon at the actuarially assumed rate of interest to the date of payment. Such payment must be made within 90 days after notification by the Fund of the cost of such reinstatement.
(Source: P.A. 102-113, eff. 7-23-21; 102-857, eff. 5-13-22.)
(Text of Section from P.A. 102-1061)
Sec. 7-139.14. Transfer to Article 3 pension fund.
(a) No later than June 30, 2023, an active member of a pension fund established under Article 3 of this Code may apply for transfer to that Article 3 pension fund of his or her credits and creditable service accumulated in this Fund for service as a sheriff's law enforcement employee, person employed by a participating municipality to perform police duties, law enforcement officer employed on a full-time basis by a forest preserve district, or person employed by a participating municipality or instrumentality to perform administrative duties related to law enforcement. The creditable service shall be transferred only upon payment by this Fund to such Article 3 pension fund of an amount equal to:
Participation in this Fund as to any credits transferred under this Section shall terminate on the date of transfer.
(b) Notwithstanding any other provision of this Code, any person applying to transfer service under this Section may reinstate credits and creditable service terminated upon receipt of a separation benefit by paying to the Fund the amount of the separation benefit plus interest thereon at the actuarially assumed rate of interest to the date of payment. Such payment must be made within 60 days after notification by the Fund of the cost of such reinstatement.
(Source: P.A. 102-113, eff. 7-23-21; 102-1061, eff. 1-1-23.)
(40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
Sec. 7-141. Retirement annuities; conditions. Retirement annuities shall be payable as hereinafter set forth:
(a) A participating employee who, regardless of cause, is separated
from the service of all participating municipalities and
instrumentalities thereof and participating instrumentalities shall be
entitled to a retirement annuity provided:
(b) Retirement annuities shall be payable:
(Source: P.A. 102-210, Article 5, Section 5-5, eff. 7-30-21; 102-210, Article 10, Section 10-5, eff. 1-1-22; 102-813, eff. 5-13-22.)
(40 ILCS 5/7-141.1)
Sec. 7-141.1. Early retirement incentive.
(a) The General Assembly finds and declares that:
It is the primary purpose of this Section to encourage units of local
government that can realize true cost savings, or have determined that an early
retirement program is in their best interest, to implement an early retirement
program.
(b) Until June 27, 1997 (the effective date of Public Act 90-32), this
Section does not apply to any employer that is a city, village, or incorporated
town, nor to the employees of any such employer. Beginning on June 27, 1997 (the effective
date of Public Act 90-32), any employer under this Article, including
an employer that is a city, village, or incorporated town, may establish an
early retirement incentive program for its employees under this Section. The
decision of a city, village, or incorporated town to consider or establish an
early retirement program is at the sole discretion of that city, village, or
incorporated town, and nothing in Public Act 90-32 limits or
otherwise diminishes this discretion. Nothing contained in this Section shall
be construed to require a city, village, or incorporated town to establish an
early retirement program and no city, village, or incorporated town may be
compelled to implement such a program.
The benefits provided in this Section are available only to members
employed by a participating employer that has filed with the Board of the
Fund a resolution or ordinance expressly providing for the creation of an
early retirement incentive program under this Section for its employees and
specifying the effective date of the early retirement incentive program.
Subject to the limitation in subsection (h), an employer may adopt a resolution
or ordinance providing a program of early retirement incentives under this
Section at any time.
The resolution or ordinance shall be in substantially the following form:
WHEREAS, Section 7-141.1 of the Illinois Pension Code provides that a
participating employer may elect to adopt an early retirement
incentive program offered by the Illinois Municipal Retirement Fund by
adopting a resolution or ordinance; and
WHEREAS, The goal of adopting an early retirement program is
to realize a substantial savings in personnel costs by offering early
retirement incentives to employees who have accumulated many years of
service credit; and
WHEREAS, Implementation of the early retirement program will provide a
budgeting tool to aid in controlling payroll costs; and
WHEREAS, The (name of governing body) has determined that the adoption of an
early retirement incentive program is in the best interests of the (name of
participating employer); therefore be it
RESOLVED (ORDAINED) by the (name of governing body) of (name of
participating employer) that:
(1) The (name of participating employer) does hereby adopt the Illinois
Municipal Retirement Fund early retirement incentive program as provided in
Section 7-141.1 of the Illinois Pension Code. The early retirement incentive
program shall take effect on (date).
(2) In order to help achieve a true cost savings, a person who retires under
the early retirement incentive program shall lose those incentives if he or she
later accepts employment with or enters into a personal services contract with any IMRF employer.
(3) In order to utilize an early retirement incentive as a budgeting
tool, the (name of participating employer) will use its best efforts either
to limit the number of employees who replace the employees who retire under
the early retirement program or to limit the salaries paid to the employees who
replace the employees who retire under the early retirement program.
(4) The effective date of each employee's retirement under this early
retirement program shall be set by (name of employer) and shall be no
earlier than the effective date of the program and no later than one year after
that effective date; except that the employee may require that the retirement
date set by the employer be no later than the June 30 next occurring after the
effective date of the program and no earlier than the date upon which the
employee qualifies for retirement.
(5) To be eligible for the early retirement incentive under this Section,
the employee must have attained age 50 and have at least 20 years of creditable
service by his or her retirement date.
(6) The (clerk or secretary) shall promptly file a certified copy of
this resolution (ordinance) with the Board of Trustees of the Illinois
Municipal Retirement Fund.
CERTIFICATION
I, (name), the (clerk or secretary) of the (name of participating
employer) of the County of (name), State of Illinois, do hereby certify
that I am the keeper of the books and records of the (name of employer)
and that the foregoing is a true and correct copy of a resolution
(ordinance) duly adopted by the (governing body) at a meeting duly convened
and held on (date).
SEAL
(Signature of clerk or secretary)
(c) To be eligible for the benefits provided under an early retirement
incentive program adopted under this Section, a member must:
(d) The employer shall determine the retirement date for each employee
participating in the early retirement program adopted under this Section. The
retirement date shall be no earlier than the effective date of the program and
no later than one year after that effective date, except that the employee may
require that the retirement date set by the employer be no later than the June
30 next occurring after the effective date of the program and no earlier than
the date upon which the employee qualifies for retirement. The employer shall
give each employee participating in the early retirement program at least 30
days written notice of the employee's designated retirement date, unless the
employee waives this notice requirement.
(e) An eligible person may establish up to 5 years of creditable service
under this Section. In addition, for each period of creditable service
established under this Section, a person shall have his or her age at
retirement deemed enhanced by an equivalent period.
The creditable service established under this Section may be used for all
purposes under this Article and the Retirement Systems Reciprocal Act,
except for the computation of final rate of earnings and the determination
of earnings, salary, or compensation under this or any other Article of the
Code.
The age enhancement established under this Section may be used for all
purposes under this Article (including calculation of the reduction imposed
under subdivision (a)1b(iv) of Section 7-142), except for purposes of a
reversionary annuity under Section 7-145 and any distributions required because
of age. The age enhancement established under this Section may be used in
calculating a proportionate annuity payable by this Fund under the Retirement
Systems Reciprocal Act, but shall not be used in determining benefits payable
under other Articles of this Code under the Retirement Systems Reciprocal Act.
(f) For all creditable service established under this Section, the
member must pay to the Fund an employee contribution consisting of the total employee contribution rate in effect at the time the member purchases the service for the plan in which the member was participating with the employer at that time multiplied by the member's highest annual salary rate used in the determination of the
final rate of earnings for retirement annuity purposes for each year of
creditable service granted under this Section.
Contributions for fractions of a year of service shall be prorated.
Any amounts that are disregarded in determining the final rate of earnings
under subdivision (d)(5) of Section 7-116 (the 125% rule) shall also be
disregarded in determining the required contribution under this subsection (f).
The employee contribution shall be paid to the Fund as follows: If the
member is entitled to a lump sum payment for accumulated vacation, sick leave,
or personal leave upon withdrawal from service, the employer shall deduct the
employee contribution from that lump sum and pay the deducted amount directly
to the Fund. If there is no such lump sum payment or the required employee
contribution exceeds the net amount of the lump sum payment, then the remaining
amount due, at the option of the employee, may either be paid to the Fund
before the annuity commences or deducted from the retirement annuity in 24
equal monthly installments.
(g) An annuitant who has received any age enhancement or creditable service
under this Section and thereafter accepts employment with or enters into a
personal services contract with an employer under this Article thereby forfeits
that age enhancement and creditable service; except that this restriction
does not apply to (1) service in an elective office, so long as the annuitant
does not participate in this Fund with respect to that office, (2) a person appointed as an officer under subsection (f) of Section 3-109 of this Code, and (3) a person appointed as an auxiliary police officer pursuant to Section 3.1-30-5 of the Illinois Municipal Code. A person
forfeiting early retirement incentives under this subsection (i) must repay to
the Fund that portion of the retirement annuity already received which is
attributable to the early retirement incentives that are being forfeited, (ii)
shall not be eligible to participate in any future early retirement program
adopted under this Section, and (iii) is entitled to a refund of the employee
contribution paid under subsection (f). The Board shall deduct the required
repayment from the refund and may impose a reasonable payment schedule for
repaying the amount, if any, by which the required repayment exceeds the refund
amount.
(h) The additional unfunded liability accruing as a result of the adoption
of a program of early retirement incentives under this Section by an employer
shall be amortized over a period of 10 years beginning on January 1 of the
second calendar year following the calendar year in which the latest date for
beginning to receive a retirement annuity under the program (as determined by
the employer under subsection (d) of this Section) occurs; except that the
employer may provide for a shorter amortization period (of no less than 5
years) by adopting an ordinance or resolution specifying the length of the
amortization period and submitting a certified copy of the ordinance or
resolution to the Fund no later than 6 months after the effective date of the
program. An employer, at its discretion, may accelerate payments to the Fund.
An employer may provide more than one early retirement incentive program
for its employees under this Section. However, an employer that has provided
an early retirement incentive program for its employees under this Section may
not provide another early retirement incentive program under this Section until the liability arising from the earlier program has been fully paid to
the Fund.
(Source: P.A. 102-210, eff. 1-1-22; 102-850, eff. 5-13-22.)
(40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
Sec. 7-142. Retirement annuities - Amount.
(a) The amount of a retirement annuity shall be the sum of the
following, determined in accordance with the actuarial tables in effect at
the time of the grant of the annuity:
(b) If payment of an annuity begins prior to the earliest age at
which the employee will become eligible for an old age insurance benefit
under the Federal Social Security Act, he may elect that the annuity
payments from this fund shall exceed those payable after his attaining
such age by an amount, computed as determined by rules of the Board, but
not in excess of his estimated Social Security Benefit, determined as
of the effective date of the annuity, provided that in no case shall the
total annuity payments made by this fund exceed in actuarial value the
annuity which would have been payable had no such election been made.
(c) Beginning
January 1, 1984 and each January 1 thereafter, the retirement annuity of a Tier 1 regular employee shall be increased
by 3% each year, not compounded. This increase shall be computed from the effective date of the retirement annuity, the first increase being 0.25% of the monthly amount times the number of months from the effective date to January 1. This increase shall not be applicable to
annuitants who are not in service on or after September 8, 1971.
A retirement annuity of a Tier 2 regular employee shall receive annual increases on the January 1 occurring either on or after the attainment of age 67 or the first anniversary of the annuity start date, whichever is later. Each annual increase shall be calculated at the lesser of 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1 of the originally granted retirement annuity. If the annual unadjusted percentage change in the consumer price index-u for the 12 months ending with the September preceding each November 1 is zero or there is a decrease, then the annuity shall not be increased.
(d) Any elected county officer who was entitled to receive a stipend from the State on or after July 1, 2009 and on or before June 30, 2010 may establish earnings credit for the amount of stipend not received, if the elected county official applies in writing to the fund within 6 months after the effective date of this amendatory Act of the 96th General Assembly and pays to the fund an amount equal to (i) employee contributions on the amount of stipend not received, (ii) employer contributions determined by the Board equal to the employer's normal cost of the benefit on the amount of stipend not received, plus (iii) interest on items (i) and (ii) at the actuarially assumed rate.
(Source: P.A. 102-210, eff. 1-1-22.)
(40 ILCS 5/7-142.1) (from Ch. 108 1/2, par. 7-142.1)
Sec. 7-142.1. Sheriff's law enforcement employees.
(a) In lieu of the retirement annuity provided by subparagraph 1 of
paragraph (a) of Section 7-142:
Any sheriff's law enforcement employee who
has 20 or more years of service in that capacity and who terminates
service prior to January 1, 1988 shall be entitled at his
option to receive a monthly retirement annuity for his service as a
sheriff's law enforcement employee computed by multiplying 2% for each year
of such service up to 10 years, 2 1/4% for each year
of such service above 10 years and up to 20 years, and
2 1/2% for each year of such service above
20 years, by his annual final rate of earnings and dividing by 12.
Any sheriff's law enforcement employee who has 20 or more years of
service in that capacity and who terminates service on or after January 1,
1988 and before July 1, 2004 shall be entitled at his option to receive
a monthly retirement
annuity for his service as a sheriff's law enforcement employee computed by
multiplying 2.5% for each year of such service up to 20 years, 2% for each
year of such service above 20 years and up to 30 years, and 1% for each
year of such service above 30 years, by his annual final rate of earnings
and dividing by 12.
Any sheriff's law enforcement employee who has 20 or more years of
service in that capacity and who terminates service on or after July 1,
2004 shall be entitled at his or her option to receive a monthly retirement
annuity for service as a sheriff's law enforcement employee computed by
multiplying 2.5% for each year of such service by his annual final rate of
earnings and dividing by 12.
If a sheriff's law enforcement employee has service in any other
capacity, his retirement annuity for service as a sheriff's law enforcement
employee may be computed under this Section and the retirement annuity for
his other service under Section 7-142.
In no case shall the total monthly retirement annuity for persons who retire before July 1, 2004 exceed 75% of the
monthly final rate of earnings. In no case shall the total monthly retirement annuity for persons who retire on or after July 1, 2004 exceed 80% of the
monthly final rate of earnings.
(b) Whenever continued group insurance coverage is elected in accordance
with the provisions of Section 367h of the Illinois Insurance Code, as now
or hereafter amended, the total monthly premium for such continued group
insurance coverage or such portion thereof as is not paid
by the municipality shall, upon request of the person electing such
continued group insurance coverage, be deducted from any monthly pension
benefit otherwise payable to such person pursuant to this Section, to be
remitted by the Fund to the insurance company
or other entity providing the group insurance coverage.
(c) A sheriff's law enforcement employee who began service in that capacity prior to the effective date of this amendatory Act of the 97th General Assembly and who has service in any other
capacity may convert up to 10 years of that service into service as a sheriff's
law enforcement employee by paying to the Fund an amount equal to (1) the
additional employee contribution required under Section 7-173.1, plus (2) the additional employer contribution required under Section 7-172, plus (3) interest on items (1) and (2) at the
prescribed rate from the date of the service to the date of payment.
Application must be received by the Board while the employee is an active participant in the Fund. Payment must be received while the member is an active participant, except that one payment will be permitted after termination of participation.
(d) The changes to subsections (a) and (b) of this Section made by this amendatory Act of the 94th General Assembly apply only to persons in service on or after July 1, 2004. In the case of such a person who begins to receive a retirement annuity before the effective date of this amendatory Act of the 94th General Assembly, the annuity shall be recalculated prospectively to reflect those changes, with the resulting increase beginning to accrue on the first annuity payment date following the effective date of this amendatory Act.
(e) Any elected county officer who was entitled to receive a stipend from the State on or after July 1, 2009 and on or before June 30, 2010 may establish earnings credit for the amount of stipend not received, if the elected county official applies in writing to the fund within 6 months after the effective date of this amendatory Act of the 96th General Assembly and pays to the fund an amount equal to (i) employee contributions on the amount of stipend not received, (ii) employer contributions determined by the Board equal to the employer's normal cost of the benefit on the amount of stipend not received, plus (iii) interest on items (i) and (ii) at the actuarially assumed rate.
(f) Notwithstanding any other provision of this Article,
the provisions of this subsection (f) apply to a person who first
becomes a sheriff's law enforcement employee under this Article on or after January 1, 2011.
A sheriff's law enforcement employee age 55 or more who has 10 or more years of service in that capacity shall be entitled at his option to receive a monthly retirement annuity for his or her service as a sheriff's law enforcement employee computed by multiplying 2.5% for each year of such service by his or her final rate of earnings.
The retirement annuity of a sheriff's law enforcement employee who is retiring after attaining age 50 with 10 or more years of creditable service shall be reduced by one-half of 1% for each month that the sheriff's law enforcement employee's age is under age 55.
The maximum retirement annuity under this subsection (f) shall be 75%
of final rate of earnings.
For the purposes of this subsection (f), "final rate of earnings" means the average monthly earnings obtained by dividing the total salary of the sheriff's law enforcement employee during the 96 consecutive months of service within the last 120 months of service in which the total earnings was the highest by the number of months of service in that period.
Notwithstanding any other provision of this Article, beginning on January 1, 2011, for all purposes under this Code (including without limitation the calculation of benefits and employee contributions), the annual earnings of a sheriff's law enforcement employee to whom this Section applies shall not include overtime and shall not exceed $106,800; however, that amount shall annually thereafter be increased by the lesser of (i) 3% of that amount, including all previous adjustments, or (ii) one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, including all previous adjustments.
(g) Notwithstanding any other provision of this Article, the monthly annuity
of a person who first becomes a sheriff's law enforcement employee under this Article on or after January 1, 2011 shall be increased on the January 1 occurring either on or after the attainment of age 60 or the first anniversary of the annuity start date, whichever is later. Each annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted retirement annuity. If the annual unadjusted percentage change in the consumer price index-u for a 12-month period ending in September is zero or, when compared with the preceding period, decreases, then the annuity shall not be increased.
(h) Notwithstanding any other provision of this Article, for a person who first becomes a sheriff's law enforcement employee under this Article on or after January 1, 2011, the annuity to which the surviving spouse, children, or parents are entitled under this subsection (h) shall be in the amount of 66 2/3% of the sheriff's law enforcement employee's earned annuity at the date of death.
(i) Notwithstanding any other provision of this Article, the monthly annuity
of a survivor of a person who first becomes a sheriff's law enforcement employee under this Article on or after January 1, 2011 shall be increased on the January 1 after attainment of age 60 by the recipient of the survivor's annuity and
each January 1 thereafter by 3% or one-half the annual unadjusted percentage increase in the consumer price index-u for the
12 months ending with the September preceding each November 1, whichever is less, of the originally granted pension. If the annual unadjusted percentage change in
the consumer price index-u for a 12-month period ending in September is zero or, when compared with the preceding period, decreases, then the annuity shall not
be increased.
(j) For the purposes of this Section, "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the boards of the pension funds.
(Source: P.A. 100-148, eff. 8-18-17.)
(40 ILCS 5/7-143) (from Ch. 108 1/2, par. 7-143)
Sec. 7-143.
Retirement annuities-Reduction.
If the participating employee elects a reversionary annuity in
accordance with Section 7-145, his retirement annuity shall be reduced by
an amount equal to the annuity which could be provided for him at the time
the annuity begins from the accumulated additional credits required to
provide the reversionary annuity.
(Source: P.A. 77-2121.)
(40 ILCS 5/7-144) (from Ch. 108 1/2, par. 7-144)
Sec. 7-144. Retirement annuities - suspended during employment.
(a) If any person
receiving any annuity again becomes an employee
and receives earnings from employment in a position requiring him, or entitling him to elect, to
become a participating employee, then the annuity payable to such employee
shall be suspended as of the 1st day of the month coincidental with or
next following the date upon which such person becomes such an employee, unless the person is authorized under subsection (b) of Section 7-137.1 of this Code to continue receiving a retirement annuity during that period.
Upon proper qualification of the participating employee payment of such
annuity may be resumed on the 1st day of the month following such
qualification and upon proper application therefor. The participating
employee in such case shall be entitled to a supplemental annuity
arising from service and credits earned subsequent to such re-entry as a
participating employee.
Notwithstanding any other provision of this Article, an annuitant shall be considered a participating employee if he or she returns to work as an employee with a participating employer and works more than 599 hours annually (or 999 hours annually with a participating employer that has adopted a resolution pursuant to subsection (e) of Section 7-137 of this Code). Each of these annual periods shall commence on the month and day upon which the annuitant is first employed with the participating employer following the effective date of the annuity.
(a-5) If any annuitant under this Article must be considered a participating employee per the provisions of subsection (a) of this Section, and the participating municipality or participating instrumentality that employs or re-employs that annuitant knowingly fails to notify the Board to suspend the annuity, the participating municipality or participating instrumentality may be required to reimburse the Fund for an amount up to one-half of the total of any annuity payments made to the annuitant after the date the annuity should have been suspended, as determined by the Board. In no case shall the total amount repaid by the annuitant plus any amount reimbursed by the employer to the Fund be more than the total of all annuity payments made to the annuitant after the date the annuity should have been suspended. This subsection shall not apply if the annuitant returned to work for the employer for less than 12 months.
The Fund shall notify all annuitants that they must notify the Fund immediately if they return to work for any participating employer. The notification by the Fund shall occur upon retirement and no less than annually thereafter in a format determined by the Fund. The Fund shall also develop and maintain a system to track annuitants who have returned to work and notify the participating employer and annuitant at least annually of the limitations on returning to work under this Section.
(b) Supplemental annuities to persons who return to service for less
than 48 months shall be computed under the provisions of Sections 7-141,
7-142 and 7-143. In determining whether an employee is eligible for an
annuity which requires a minimum period of service, his entire period of
service shall be taken into consideration but the supplemental annuity
shall be based on earnings and service in the supplemental period only.
The effective date of the suspended and supplemental annuity for the
purpose of increases after retirement shall be considered to be the
effective date of the suspended annuity.
(c) Supplemental annuities to persons who return to service for 48
months or more shall be a monthly amount determined as follows:
(d) If a Tier 2 regular employee becomes a member or participant under any other system or fund created by this Code and is employed on a full-time basis, except for those members or participants exempted from the provisions of subsection (a) of Section 1-160 of this Code (other than a participating employee under this Article), then the person's retirement annuity shall be suspended during that employment. Upon termination of that employment, the person's retirement annuity shall resume and be recalculated as required by this Section.
(e) If a Tier 2 regular employee first began participation on or after January 1, 2012 and is receiving a retirement annuity and accepts on a contractual basis a position to provide services to a governmental entity from which he or she has retired, then that person's annuity or retirement pension shall be suspended during that contractual service, notwithstanding the provisions of any other Section in this Article. Such annuitant shall notify the Fund, as well as his or her contractual employer, of his or her retirement status before accepting contractual employment. A person who fails to submit such notification shall be guilty of a Class A misdemeanor and required to pay a fine of $1,000. Upon termination of that contractual employment, the person's retirement annuity shall resume and be recalculated as required by this Section.
(Source: P.A. 102-210, eff. 1-1-22.)
(40 ILCS 5/7-144.2) (from Ch. 108 1/2, par. 7-144.2)
Sec. 7-144.2.
Incremental retirement annuity.
Each employee annuitant who terminated service prior to the effective
date of this amendatory Act of 1971 is entitled to receive a monthly
incremental retirement annuity, effective January 1, 1972, of .167% of his
monthly retirement annuity amount, multiplied by the number of months from
the effective date of his annuity to January 1, 1972. This monthly
incremental annuity shall be increased on each January 1 thereafter during
the lifetime of the annuitant by 2% of the monthly retirement annuity
amount. Beginning January 1, 1984 and each January 1 thereafter, the monthly
incremental annuity shall be increased by 3% of the monthly retirement annuity
amount. The incremental annuity is payable only if the annuitant agrees to
pay the fund an amount equal to 1% of 1/12 of his annual final rate of
earnings, determined as of the date of his retirement, multiplied by the
number of full years of service. The annuitant, prior to December 1, 1971,
may authorize the fund to deduct the payment from his annuity if the total
payment can be deducted in one month. If the agreement or payment is
received by the fund prior to December 1, 1971, the incremental annuity
shall be effective January 1, 1972. If the agreement or payment is not
received before December 1, 1971, the incremental annuity shall be
effective the first day of the next month after receipt of payment by the
fund, but if received after the 15th day, the first day of the month
following the next month, and shall not be paid retroactively.
The monthly retirement annuity amount, for the purpose of this Section,
shall be the annuity amount initially awarded or, if adjusted under
paragraph (b) of Section 7-142, the adjusted amount, disregarding any
incremental annuities previously granted.
(Source: P.A. 83-664.)
(40 ILCS 5/7-144.3) (from Ch. 108 1/2, par. 7-144.3)
Sec. 7-144.3.
Supplemental benefit payment.
(a) A supplemental benefit payment, consisting of a sum calculated as
provided in subsection (c), shall be payable to each eligible retirement
annuitant and surviving spouse annuitant on July 1, 1993, and on each
subsequent July 1; except that if this Code is amended to change the
uncompounded annual increase in retirement annuity granted in subsection
(c) of Section 7-142 to a compounded annual increase, no supplemental
benefit shall be paid under this Section on any July 1 occurring on or
after the effective date of that amendment. The amount of the supplemental
benefit payment, and a person's eligibility to receive the supplemental
benefit payment, shall be redetermined for each year in which the benefit
is payable.
(b) To be eligible to receive a supplemental benefit payment, a person
must be entitled to receive a retirement annuity or surviving spouse
annuity from the Fund on the July 1 supplemental benefit payment date, and
must have been receiving that annuity during each of the 12 months
immediately preceding that date; except that a surviving spouse annuitant
whose surviving spouse annuity began less than one year before the July 1
supplemental benefit payment date shall be eligible if the deceased spouse
received a retirement annuity from the Fund during the period from the
previous July 1 until the start of the surviving spouse annuity.
(c) The amount of the supplemental benefit payment shall be determined
by the Board as follows:
(Source: P.A. 87-850.)
(40 ILCS 5/7-145) (from Ch. 108 1/2, par. 7-145)
Sec. 7-145. Reversionary annuities.
(a) An employee entitled to a retirement annuity may elect to provide a
reversionary annuity for a beneficiary if:
(b) An election shall become effective only:
(c) The amount of the reversionary annuity shall be that specified in
the notice of election.
(d) Reversionary annuity shall begin the first day of the month
following the month in which the last payment of the employee annuity is
payable because of death, provided the beneficiary is alive at such time.
If the beneficiary does not survive the annuitant, no reversionary annuity
shall be payable, but only the death benefit as provided in Sections 7-163
and 7-164.
(e) Any election made under this Section shall be irrevocable by the employee.
(Source: P.A. 98-1078, eff. 1-1-15.)
(40 ILCS 5/7-145.1)
Sec. 7-145.1. Alternative annuity for county officers.
(a) The benefits provided in this Section and Section 7-145.2 are available
only if, prior to the effective date of this amendatory Act of the 97th General Assembly, the county board has filed with the Board of the Fund a resolution or
ordinance expressly consenting to the availability of these benefits for its
elected county officers. The county board's consent is irrevocable with
respect to persons participating in the program, but may be revoked at any time
with respect to persons who have not paid an additional optional contribution
under this Section before the date of revocation.
An elected county officer may elect to establish alternative credits for
an alternative annuity by electing in writing before the effective date of this amendatory Act of the 97th General Assembly to make additional optional
contributions in accordance with this Section and procedures established
by the board. These alternative credits are available only for periods of
service as an elected county officer. The elected county officer may
discontinue making the additional optional contributions by notifying the
Fund in writing in accordance with this Section and procedures established
by the board.
Additional optional contributions for the alternative annuity shall
be as follows:
No additional optional contributions may be made for any period of service
for which credit has been previously forfeited by acceptance of a refund,
unless the refund is repaid in full with interest at the effective rate from
the date of refund to the date of repayment.
(b) In lieu of the retirement annuity otherwise payable under this Article,
an elected county officer who (1) has elected to participate in the Fund and
make additional optional contributions in accordance with this Section, (2)
has held and made additional optional contributions with respect to the same
elected county office for at least 8 years, and (3) has attained
age 55 with at least 8 years of service credit (or has attained age 50 with at
least 20 years of service as a sheriff's law enforcement employee) may elect
to have his retirement annuity computed as follows: 3% of the participant's
salary for each of the first 8 years
of service credit, plus 4% of that salary for each of the next 4 years of
service credit, plus 5% of that salary for each year of service credit in
excess of 12 years, subject to a maximum of 80% of that salary.
This formula applies only to service in an elected county office that the
officer held for at least 8 years, and only to service for which additional
optional contributions have been paid under this Section. If an elected county
officer qualifies to have this formula applied to service in more than one
elected county office, the qualifying service shall be accumulated for purposes
of determining the applicable accrual percentages, but the salary used for each
office shall be the separate salary calculated for that office, as defined in
subsection (g).
To the extent that the elected county officer has service credit that does
not qualify for this formula, his retirement annuity will first be determined
in accordance with this formula with respect to the service to which this
formula applies, and then in accordance with the remaining Sections of this
Article with respect to the service to which this formula does not apply.
(c) In lieu of the disability benefits otherwise payable under this
Article, an elected county officer who (1) has
elected to participate in the Fund, and (2) has become
permanently disabled and as a consequence is unable to perform the duties
of his office, and (3) was making optional contributions in accordance with
this Section at the time the disability was incurred, may elect to receive
a disability annuity calculated in accordance with the formula in subsection
(b). For the purposes of this subsection, an elected county officer shall be
considered permanently disabled only if: (i) disability occurs while in
service as an elected county officer and is of such a nature as to prevent him
from reasonably performing the duties of his office at the time; and (ii) the
board has received a written certification by at least 2 licensed physicians
appointed by it stating that the officer is disabled and that the disability
is likely to be permanent.
(d) Refunds of additional optional contributions shall be made on the
same basis and under the same conditions as provided under Section 7-166,
7-167 and 7-168. Interest shall be credited at the effective rate on the
same basis and under the same conditions as for other contributions.
If an elected county officer fails to hold that same elected county
office for at least 8 years, he or she shall be entitled after leaving office
to receive a refund of the additional optional contributions made with respect
to that office, plus interest at the effective rate.
(e) The plan of optional alternative benefits and contributions shall be
available to persons who are elected county officers and active contributors
to the Fund on or after November 15, 1994 and elected to establish alternative credit before the effective date of this amendatory Act of the 97th General Assembly. A person who was an elected county
officer and an active contributor to the Fund on November 15, 1994 but is
no longer an active contributor may apply to make additional optional
contributions under this Section at any time within 90 days after the
effective date of this amendatory Act of 1997; if the person is an annuitant,
the resulting increase in annuity shall begin to accrue on the first day of
the month following the month in which the required payment is received by the
Fund.
(f) For the purposes of this Section and Section 7-145.2, the terms "elected
county officer" and "elected county office" include, but are not limited to:
(1) the county clerk, recorder, treasurer, coroner, assessor (if elected),
auditor, sheriff, and
State's Attorney; members of the county board; and the clerk of the circuit
court; and (2) a person who has been appointed to fill a vacancy in an
office that is normally filled by election on a countywide basis, for the
duration of his or her service in that office. The terms "elected county
officer" and "elected county office" do not include any officer or office of
a county that has not consented to the availability of benefits under this
Section and Section 7-145.2.
(g) For the purposes of this Section and Section 7-145.2, the term
"salary" means the final rate of earnings for the elected county office held,
calculated in a manner consistent with Section 7-116, but for that office
only. If an elected county officer qualifies to have the formula in subsection
(b) applied to service in more than one elected county office, a separate
salary shall be calculated and applied with respect to each such office.
(h) The changes to this Section made by this amendatory Act of the 91st
General Assembly apply to persons who first make an additional optional
contribution under this Section on or after the effective date of this
amendatory Act.
(i) Any elected county officer who was entitled to receive a stipend from the State on or after July 1, 2009 and on or before June 30, 2010 may establish earnings credit for the amount of stipend not received, if the elected county official applies in writing to the fund within 6 months after the effective date of this amendatory Act of the 96th General Assembly and pays to the fund an amount equal to (i) employee contributions on the amount of stipend not received, (ii) employer contributions determined by the Board equal to the employer's normal cost of the benefit on the amount of stipend not received, plus (iii) interest on items (i) and (ii) at the actuarially assumed rate.
(Source: P.A. 100-148, eff. 8-18-17.)
(40 ILCS 5/7-145.2)
Sec. 7-145.2. Alternative survivor's benefits for survivors of county
officers.
In lieu of the survivor's benefits otherwise payable under this
Article, the spouse or eligible child of any deceased elected county
officer who (1) had elected to participate in the
Fund, and (2) was either making additional optional contributions in
accordance with Section 7-145.1 on the date of death, or was receiving
an annuity calculated under that Section at the time of death, may elect to
receive an annuity beginning on the date of the
elected county officer's death, provided that the spouse and officer must
have been married on the date of the last termination of his or her service
as an elected county officer and for a continuous period of at least one year
immediately preceding his or her death.
The annuity shall be payable beginning on the date of the elected
county officer's death if the spouse is then age 50 or over, or beginning
at age 50 if the age of the spouse is less than 50 years. If a minor
unmarried child or children of the county officer, under age 18, also
survive, and the child or children are under the care of the eligible
spouse, the annuity shall begin as of the date of death of the elected county
officer without regard to the spouse's age.
The annuity to a spouse shall be 66 2/3% of the amount of retirement
annuity earned by the elected county officer on the date of death, subject to a
minimum payment of 10% of salary, provided that if an eligible spouse,
regardless of age, has in his or her care at the date of death of the
elected county officer any unmarried child or children of the county
officer, under age 18, the minimum annuity shall be 30% of the elected
officer's salary, plus 10% of salary on account of each minor child
of the elected county officer, subject to a combined total payment on
account of a spouse and minor children not to exceed 50% of the deceased
officer's salary. In the event there shall be no spouse
of the elected county officer surviving, or should a
spouse remarry or die while eligible minor children still survive the
elected county officer, each such child shall be entitled to an annuity
equal to 20% of salary of the elected officer subject to a combined total
payment on account of all such children not to exceed 50% of salary of the
elected county officer. The salary to be used in the calculation of these
benefits shall be the same as that prescribed for determining a retirement
annuity as provided in Section 7-145.1.
Upon the death of an elected county officer occurring after termination
of service or while in receipt of a retirement annuity, the combined total
payment to a spouse and minor children, or to minor children alone if no
eligible spouse survives, shall be limited to 75% of the amount of
retirement annuity earned by the county officer.
Marriage of a child or attainment of age 18, whichever first occurs,
shall render the child ineligible for further consideration in the payment
of an annuity to a spouse or in the increase in the amount thereof. Upon
attainment of ineligibility of the youngest minor child of the elected
county officer, the annuity shall immediately revert to the amount payable
upon death of an elected county officer leaving no minor children surviving
him or her. If the spouse is under age 50 at such time, the annuity as
revised shall be deferred until such age is attained. Remarriage of a
widow or widower prior to attainment of age 55 shall disqualify the spouse
from the receipt of an annuity.
(Source: P.A. 95-279, eff. 1-1-08.)
(40 ILCS 5/7-146) (from Ch. 108 1/2, par. 7-146)
Sec. 7-146. Temporary disability benefits - Eligibility. Temporary
disability benefits shall be payable to participating employees as
hereinafter provided.
(a) The participating employee shall be considered temporarily
disabled if:
(b) A temporary disability benefit shall be payable to a temporarily
disabled employee provided:
(40 ILCS 5/7-147) (from Ch. 108 1/2, par. 7-147)
Sec. 7-147.
Temporary disability benefits - Commencement and duration.
Temporary disability
benefits shall be payable:
(a) Upon receipt by the fund of a written application therefor. The
effective date may be not more than 6 months prior to the receipt by the
fund of the application. However, if an employee executes an application
and delay in filing is caused by negligence or fault of any officer or
employee of the applicant's municipality or participating instrumentality,
the effective date may be the later of 30 days prior to the date the
application is executed or one year prior to the date received by the fund.
(b) Once a month as of the end of each calendar month;
(c) For less than a month in a fraction equal to that created by making
the number of days of disability in the month the numerator and the number
of the days in the month the denominator;
(d) To the beneficiary of a deceased participating employee for the
unpaid amount accrued to the date of death;
(e) For a period ending on the last day of the month when the total
period during which temporary disability benefits are paid equals 1/2 of
the total period of service (excluding periods of disability) of the
employee as of the date of his disability or 30 months, whichever is the
lesser; provided that when a participating employee becomes disabled within
5 years of a previous period or periods of temporary or total and permanent
disability, temporary disability benefits shall be payable for a period not
to exceed the lesser of 30 months or a period computed as follows:
1. the lesser of 30 months or 1/2 of the total service preceding the
first period of disability within such 5-year period;
2. less the total amount of all periods of disability within said 5-year
period;
3. plus 1/2 of the total amount of service (excluding periods of
disability) subsequent to the first period of disability within such 5-year
period;
(f) while the temporary disability continues.
(Source: P.A. 86-272.)
(40 ILCS 5/7-149) (from Ch. 108 1/2, par. 7-149)
Sec. 7-149.
Temporary disability benefits-Periodic checks.
The Board shall conduct periodic checks to determine if any
participating employee is disabled. Such checks may consist of periodic
examinations by a physician or physicians appointed by the Board, requiring
the employee to submit evidence of continuing disability and such other
investigations as the Board may deem appropriate. The following shall
constitute prima-facie evidence of termination of temporary disability:
(a) A written report by a physician appointed by the Board stating that
the temporary disability has ceased;
(b) The earning of compensation by the employee from any source for
personal services, in excess of 25% of the monthly rate of earnings upon
which his disability benefits are based.
(Source: Laws 1965, p. 1086.)
(40 ILCS 5/7-150) (from Ch. 108 1/2, par. 7-150)
Sec. 7-150. Total and permanent disability benefits - Eligibility. Total and permanent disability benefits shall be payable to
participating employees as hereinafter provided, including those
employees receiving disability benefit on July 1, 1962.
(a) A participating employee shall be considered totally and
permanently disabled if:
(b) A totally and permanently disabled employee is entitled to a
permanent disability benefit provided:
(c) A participating employee shall remain eligible and may make
application for a total and permanent disability benefit within 90 days
after the termination of his temporary disability benefits or within
such longer period terminating at the end of the period during which his
employing municipality is prevented from employing him by reason of any
statutory prohibition.
(Source: P.A. 101-151, eff. 7-26-19.)
(40 ILCS 5/7-151) (from Ch. 108 1/2, par. 7-151)
Sec. 7-151.
Total and permanent disability benefits - Commencement and
duration. Permanent disability benefits shall be payable:
(a) As of the date temporary disability benefits are exhausted;
(b) Once a month as of the end of each month;
(c) For less than a month in a fraction equal to that created by making
the number of days of disability in the month the numerator and the number
of the days in the month the denominator;
(d) To the beneficiary of a deceased employee for the unpaid amount
accrued to the date of death;
(e) While total and permanent disability
continues;
(f) For the period ending on the last day of the month which is the
later of the following:
(Source: P.A. 92-424, eff. 8-17-01.)
(40 ILCS 5/7-152) (from Ch. 108 1/2, par. 7-152)
Sec. 7-152.
Disability benefits - Amount.
The amount of the monthly
temporary and total and permanent disability benefits shall be 50% of the
participating employee's final rate of earnings on the date disability was
incurred, subject to the following adjustments:
(a) If the participating employee has a reduced rate of earnings at the
time his employment ceases because of disability, the rate of earnings shall
be computed on the basis of his last 12 month period of full-time employment.
(b) If the participating employee is eligible for a disability benefit
under the federal Social Security Act, the amount of monthly disability
benefits shall be reduced, but not to less than $10 a month, by the amount
he would be eligible to receive as a disability benefit under the federal
Social Security Act, whether or not because of service as a covered employee
under this Article. The reduction shall be effective as of the month the
employee is eligible for Social Security disability benefits. The Board
may make such reduction if it appears that the employee may be so eligible
pending determination of eligibility and make an appropriate adjustment
if necessary after such determination. If the employee, because of his
refusal to accept rehabilitation services under the federal Rehabilitation
Act of 1973 or the federal Social Security Act, or because he is receiving
workers' compensation benefits, has his Social Security benefits reduced or
terminated, the disability benefit shall be reduced as if the employee were
receiving his full Social Security disability benefit.
(c) If the employee (i) is over the age for a full Social Security
old-age insurance benefit, (ii) was not eligible for a Social
Security disability benefit immediately before reaching that age, and (iii) is eligible for a full Social Security old-age insurance
benefit, then the amount of the monthly disability benefit shall be
reduced, but not to less than $10 a month, by the amount of the old-age
insurance benefit to which the employee is entitled, whether or not the
employee applies for the Social Security old-age insurance benefit. This
reduction shall be made in the month after the month in which the employee
attains the age for a full Social Security old-age insurance benefit. However, if the employee was receiving a Social Security disability
benefit before reaching the age for a full Social Security old-age insurance
benefit, the disability benefits after that age
shall be determined under subsection (b) of this Section.
(d) The amount of disability benefits shall not be reduced by reason of
any increase, other than one resulting from a correction in the employee's
wage records, in the amount of disability or old-age insurance benefits
under the federal Social Security Act which takes effect after the month
of the initial reduction under paragraph (b) or (c) of this Section.
(e) If the employee in any month receives compensation from gainful
employment which is more than 25% of the final rate of earnings on which
his disability benefits are based, the temporary disability benefit payable
for that month shall be reduced by an amount equal to such excess.
(f) An employee who has been disabled for at least 30 days may return to
work for the employer on a part-time basis for a trial work period of up to
one year, during which the disability shall be deemed to continue. Service
credit shall continue to accrue and the disability benefit shall continue
to be paid during the trial work period, but the benefit shall be reduced
by the amount of earnings received by the disabled employee. Return to
service on a full-time basis shall terminate the trial work period. The
reduction under this subsection (f) shall be in lieu of the reduction, if
any, required under subsection (e).
(g) Beginning January 1, 1988, every total and permanent disability benefit
shall be increased by 3% of the original amount of the benefit, not
compounded, on each January 1 following the later of (1) the date the total
and permanent disability benefit begins, or (2) the date the total and
permanent disability benefit would have begun if the employee had been paid
a temporary disability benefit for 30 months.
(Source: P.A. 92-424, eff. 8-17-01.)
(40 ILCS 5/7-153) (from Ch. 108 1/2, par. 7-153)
Sec. 7-153.
Total and permanent disability benefits; periodic checks.
The board shall conduct periodic checks to determine if participating
employees who are drawing a total permanent disability benefit remain
totally and permanently disabled. Such checks may consist of periodic
examination by a physician or physicians appointed by the board,
requiring the employee to submit evidence of continuing disability or
absence of gainful employment and such other investigations as the board
may deem appropriate. A written report by a physician appointed by the
board stating that the employee is no longer totally and permanently
disabled shall constitute prima-facie evidence of termination of total
and permanent disability, except as provided in subsection (f) of
Section 7-152.
(Source: P.A. 87-740.)
(40 ILCS 5/7-154) (from Ch. 108 1/2, par. 7-154)
Sec. 7-154. Surviving spouse annuities - Eligibility.
(a) A surviving spouse annuity shall be payable to the eligible
surviving spouse of a participating employee, an employee annuitant, or a
person who on the date of death would have been entitled to a retirement
annuity, had he applied for such annuity, and who dies at any time when a
surviving spouse annuity equals at least $5 per month, provided:
(b) If a person is the spouse of a retiring participating
employee on the date of the initial payment of a retirement annuity and is
qualified to receive a surviving spouse annuity upon the death of the
employee and the surviving spouse contributions are not refunded to the
employee, then a surviving spouse annuity shall be payable to that person
even if the marriage to the employee is dissolved after that date.
(c) Eligibility of a surviving spouse shall be determined as of the
date of death. Only one surviving spouse annuity shall be paid on
account of the death of any employee.
(Source: P.A. 99-682, eff. 7-29-16.)
(40 ILCS 5/7-155) (from Ch. 108 1/2, par. 7-155)
Sec. 7-155. Surviving spouse annuities-commencement.
(a) A surviving spouse annuity shall begin on the 1st day of the month
next following the month in which the participating employee, or the
employee annuitant or such person entitled to a retirement annuity died,
upon a written application therefor, provided:
(b) A person receiving a surviving spouse annuity whose annuity was granted but limited to one year prior to the application date under the former provisions of this Section may reapply for annuity payments for the period denied due to the one-year limitation. Such annuity payments shall not include interest based on late payment.
(c) The changes to this Section made by this amendatory Act of the 99th General Assembly apply without regard to whether the deceased spouse was in service on or after the effective date of this amendatory Act.
(Source: P.A. 99-580, eff. 7-15-16.)
(40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156)
Sec. 7-156. Surviving spouse annuities - amount.
(a) The amount of surviving spouse annuity shall be:
1. Upon the death of an employee annuitant or such person entitled, upon
application, to a retirement annuity at date of death, (i) an amount equal
to 50% for a Tier 1 regular employee or 66 2/3% for a Tier 2 regular employee of the retirement annuity which was or would
have been payable exclusive of the amount so payable which was provided from
additional credits, and disregarding any election made under paragraph (b) of
Section 7-142, plus (ii) an annuity which could be provided at the then
attained age of the surviving spouse and under actuarial tables then in effect,
from the excess of the additional credits, (excluding any such credits used to
create a reversionary annuity) used to provide the annuity granted pursuant to
paragraph (a) (2) of Section 7-142 of this article over the total annuity
payments made pursuant thereto.
2. Upon the death of a participating employee on or after attainment of
age 55, an amount equal to 50% for a Tier 1 regular employee or 66 2/3% for a Tier 2 regular employee of the retirement annuity
which he could have had as of the date of death had he then retired and applied
for annuity, exclusive of the portion thereof which could have been provided
from additional credits, and disregarding paragraph (b) of Section 7-142,
plus an amount equal to the annuity which could be provided from the total
of his accumulated additional credits at date of death, on the basis of the
attained age of the surviving spouse on such date.
3. Upon the death of a participating employee before age 55, an amount equal
to 50% for a Tier 1 regular employee or 66 2/3% for a Tier 2 regular employee of the retirement annuity which he could have had
as of his attained age on the date of death, had he then retired and applied
for annuity, and the provisions of this Article that no such annuity shall
begin until the employee has attained at least age 55 were not applicable,
exclusive of the portion thereof which could have been provided from
additional credits and disregarding paragraph (b) of Section 7-142, plus an
amount equal to the annuity which could be provided from the total of his
accumulated additional credits at date of death, on the basis of the
attained age of the surviving spouse on such date.
In the case of the surviving spouse of a person who dies before June 1, 2006 (the
effective date of Public Act 94-712), if
the surviving spouse is more than 5 years younger than the deceased,
that portion of the annuity which is not based on additional credits shall
be reduced in the ratio of the value of a life annuity of $1 per year at an
age of 5 years less than the attained age of the deceased, at the earlier
of the date of the death or the date his retirement annuity begins, to the
value of a life annuity of $1 per year at the attained age of the surviving
spouse on such date, according to actuarial tables approved by the Board.
This reduction does not apply to the surviving spouse of a person who dies
on or after June 1, 2006 (the effective date of Public Act 94-712).
In computing the amount of a surviving spouse annuity, incremental increases
of retirement annuities to the date of death of the employee annuitant shall be
considered.
(b) If the employee was a Tier 1 regular employee, each surviving spouse annuity payable on January 1, 1988 shall be
increased on that date by 3% of the original amount of the annuity. Each
surviving spouse annuity that begins after January 1, 1988 shall be
increased on the January 1 next occurring after the annuity begins, by an
amount equal to (i) 3% of the original amount thereof if the deceased
employee was receiving a retirement annuity at the time of his death; otherwise
(ii) 0.25% of the original amount thereof for each complete
month which has elapsed since the date the annuity began.
On each January 1 after the date of the initial increase under this
subsection, each surviving spouse annuity shall be increased by 3% of the
originally granted amount of the annuity.
(c) If the participating employee was a Tier 2 regular employee, each surviving spouse annuity shall be increased (1) on each January 1 occurring on or after the commencement of the annuity if the deceased member died while receiving a retirement annuity or (2) in other cases, on each January 1 occurring after the first anniversary of the commencement of the annuity. Such annual increase shall be calculated at 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the September preceding each November 1, whichever is less, of the originally granted surviving spouse annuity. If the annual unadjusted percentage change in the consumer price index-u for the 12 months ending with the September preceding each November 1 is zero or there is a decrease, then the annuity shall not be increased.
(Source: P.A. 102-210, eff. 1-1-22.)
(40 ILCS 5/7-157) (from Ch. 108 1/2, par. 7-157)
Sec. 7-157.
Surviving spouse annuities - marriage to terminate.
If a
surviving spouse annuitant marries before reaching age 55, the
annuity shall be terminated as of the end of the calendar month following the
month in which the marriage occurs, unless the marriage occurs after
December 31, 2000.
(Source: P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/7-158) (from Ch. 108 1/2, par. 7-158)
Sec. 7-158.
Surviving spouse annuities - Options.
In lieu of the surviving
spouse annuity an eligible surviving spouse
shall have the option of receiving other benefits as follows:
1. The surviving spouse of a participating employee may elect to
receive either a single sum death benefit or a surviving spouse annuity
and the $3,000 death benefit provided in Sections 7-163 and 7-164.
2. The surviving spouse of an employee, who has separated from
service and would have been entitled to a retirement annuity on date of
death, may elect to receive either a single sum death benefit or a
surviving spouse annuity and the $3,000 death benefit provided in
Sections 7-163 and 7-164.
3. If any surviving spouse annuity is payable prior to the earliest age at
which the recipient will become eligible for a widows' or widowers' insurance
benefit under the Federal Social Security Act, the recipient may elect
that the annuity payments from this fund shall exceed those payable after
attaining such age by an amount not in excess of the estimated Social
Security Benefit, determined as of the effective date of the surviving
spouse annuity, provided that in no case shall the total annuity
payments made by this fund exceed in actuarial value the annuity which
would have been paid had no such election been made.
4. The surviving spouse of a participating employee, whose annuity
was suspended upon return to employment and who had one year or more of
service after his return, may apply the additional service credits to a
supplemental surviving spouse annuity and receive the $3,000 death
benefit or apply the additional service credits to a single sum death
benefit and forego the $3,000 death benefit payable upon the death of an
annuitant.
5. The surviving spouse of a participating employee, whose annuity
was suspended upon return to employment and who had less than one year
of service after his return, shall have the additional service credits
applied towards a supplemental surviving spouse annuity and shall
receive the $3,000 death benefit.
(Source: P.A. 85-941.)
(40 ILCS 5/7-159) (from Ch. 108 1/2, par. 7-159)
Sec. 7-159. Surviving spouse annuity - refund of survivor credits.
(a) Any employee annuitant who (1) upon the date a retirement annuity
begins is not then married, or (2) is married to a person who would not qualify
for surviving spouse annuity if the person died on such date, is entitled to a
refund of the survivor credits including interest accumulated on the date the
annuity begins, excluding survivor credits and interest thereon credited during
periods of disability, and no spouse shall have a right to any surviving spouse
annuity from this Fund. If the employee annuitant
reenters service and upon subsequent retirement has a spouse who would
qualify for a surviving spouse annuity, the employee annuitant may pay the
fund the amount of the refund plus interest at the effective rate at the
date of payment. The payment shall qualify the spouse for a surviving
spouse annuity and the amount paid shall be considered as survivor
contributions.
(b) Instead of a refund under subsection (a), the retiring employee may
elect to convert the amount of the refund into an annuity, payable
separately from the retirement annuity. If the annuitant dies before the
guaranteed amount has been distributed, the remainder shall be paid in a lump
sum to the designated beneficiary of the annuitant. The Board shall adopt any
rules necessary for the implementation of this subsection.
(c) An annuitant who retired prior to June 1, 2011 and received a refund of
survivor credits under subsection (a), and who thereafter became, and remains,
either:
The Fund may allow the annuitant to repay this refund over a period of not more
than 24 months. To the extent permitted by the Internal Revenue Code of 1986, as amended, for federal and State tax purposes, if a member pays in monthly
installments by reducing the monthly benefit by the amount of the otherwise
applicable contribution, the monthly amount by which the annuitant's benefit is
reduced shall not be treated as a contribution by the annuitant but rather as a
reduction of the annuitant's monthly benefit.
If an annuitant makes an election under this subsection (c) and the contributions
required are not paid in full, an otherwise qualifying spouse shall be given the
option to make an additional lump sum payment of the remaining contributions
and qualify for a surviving spouse annuity. Otherwise, an additional refund
representing contributions made hereunder shall be paid at the annuitant's death
and there shall be no surviving spouse annuity paid.
(d) Any surviving spouse of an annuitant who (1) retired prior to June 1, 2011, (2) was not married on the date the retirement annuity began, (3) received a refund of survivor credits under subsection (a), and (4) died prior to the implementation of Public Act 99-682 on December 29, 2016 may, within a period of one year beginning 5 months after the effective date of this amendatory Act of the 101st General Assembly, make an election to re-establish rights to a surviving spouse annuity under Sections 7-154 through 7-158 (notwithstanding the eligibility requirements of paragraph (a) of subsection (1) of Section 7-154), by paying to the Fund: (i) the total amount of the refund received for survivor credits; and (ii) interest thereon at the actuarially assumed rate of return from the date of the refund to the date of payment. The surviving spouse must also provide documentation proving he or she was married to the annuitant or a party to a civil union with the annuitant at the time of death and has not subsequently remarried. This proof must include a marriage certificate or a certificate for a civil union and any other supporting documents deemed necessary by the Fund.
(Source: P.A. 101-610, eff. 1-1-20.)
(40 ILCS 5/7-160) (from Ch. 108 1/2, par. 7-160)
Sec. 7-160. Child annuities-eligibility.
Child annuities shall be payable to each child of an employee annuitant
who dies with no surviving spouse and whose spouse would have been eligible
to receive a surviving spouse annuity, and each child of a deceased
employee whose surviving spouse dies and whose spouse, immediately prior to
death, was receiving or would have been eligible to receive, a surviving
spouse annuity, or who left no surviving spouse, is eligible to receive a
child annuity, provided:
(Source: P.A. 95-279, eff. 1-1-08.)
(40 ILCS 5/7-161) (from Ch. 108 1/2, par. 7-161)
Sec. 7-161.
Child annuities-commencement.
A child annuity shall begin upon proper application therefor, on the
first day of the month following the month in which the survivor of his
parents has died, and shall continue until death, or until the first day of
the month coincidental with or next preceding the day the child attains age
18 or marries, whichever first occurs.
(Source: P.A. 77-2121.)
(40 ILCS 5/7-162) (from Ch. 108 1/2, par. 7-162)
Sec. 7-162.
Child annuities-amount.
The amount of child annuities shall be:
1. The aggregate of all child annuities in an amount equal to the
surviving spouse annuity which the spouse of the employee was receiving, or
eligible to receive, immediately prior to death, or which the spouse of the
annuitant would have received if surviving;
2. The child annuity payable at any time to each eligible child shall be
an amount determined by dividing the aggregate amount of all child
annuities by the number of children then eligible to receive child
annuities.
(Source: P.A. 77-2121.)
(40 ILCS 5/7-163) (from Ch. 108 1/2, par. 7-163)
Sec. 7-163.
Death benefits-eligibility.
Death benefits shall be payable as hereinafter set forth:
1. To the beneficiary defined in Section 7-118;
2. A death benefit shall be paid to the beneficiary as soon as
practicable after receipt by the board of:
a. A certified copy of the death certificate of the employee or
annuitant;
b. A written application of the beneficiary for such benefit.
(Source: P.A. 78-255.)
(40 ILCS 5/7-164) (from Ch. 108 1/2, par. 7-164)
Sec. 7-164.
Death benefits - Amount.
The amount of the death benefit
shall be:
1. Upon the death of an employee with at least one year of service
occurring while in an employment relationship (including employees
drawing disability benefits) with a participating municipality or
participating instrumentality, an amount equal to the sum of:
2. Upon the death of an employee with less than 1 year of service
occurring while in the service of any participating municipality or
instrumentality, an amount equal to the sum of his accumulated normal,
additional and survivor credits on the date of death, excluding those
credits and interest thereon allowed during periods of disability.
3. Upon the death of an employee who has separated from service and
was not entitled to a retirement annuity on the date of death, an amount
equal to the sum of his accumulated normal, survivor and additional
credits on the date of death excluding those credits and interest
thereon allowed during periods of disability.
4. Upon the death of an employee in an employment relationship, or
an employee who has service and was entitled to a retirement annuity on
the date of death, when a surviving spouse or child annuity is awarded,
$3,000.
5. Upon the death of an employee, who has separated from service and
was entitled to a retirement annuity on the date of death, and no
surviving spouse or child annuity is awarded, $3,000 plus an amount
equal to his accumulated normal, survivor and additional credits on the
date of death, excluding those credits and interest earned thereon
allowed during periods of disability.
6. Upon the death of an employee annuitant, $3,000 and, unless a
surviving spouse, child or reversionary annuity is payable, the sum of
(i) the excess of the normal and survivor credits, excluding those
allowed during periods of disability, which the annuitant had as of the
effective date of his annuity over the total annuities paid pursuant to
paragraph (a) 1 of Section 7-142 to the date of death, plus (ii) the
excess of the additional credits, excluding any such credits used to
create a reversionary annuity, used to provide the annuity granted
pursuant to paragraph (a) 2 of Section 7-142 over the total annuity
payments made pursuant thereto to the time of death.
7. Upon the death of an annuitant receiving a reversionary annuity
or of a person designated to receive a reversionary annuity prior to the
receipt of such annuity the sum of the additional credits of the person
creating the reversionary annuity as of the effective date of his own
retirement annuity over the reversionary annuity payments, if any, made
prior to the date of death of such annuitant or person designated to
receive the reversionary annuity.
8. Upon the death of an annuitant receiving a beneficiary annuity
which was effective before January 1, 1986,
the excess of the death benefit which was used to provide the annuity,
over the sum of all annuity payments made to the beneficiary.
Upon the death of an annuitant receiving a beneficiary annuity effective
January 1, 1986 or thereafter, the sum of (i) the excess of the normal and
survivor credits, excluding those allowed during periods of disability,
which the annuitant had as of the effective date of his annuity over the
total annuities paid pursuant to paragraph (c) of Section 7-165, to date of
death, plus (ii) the excess of the additional credits, excluding any such
credits used to create a reversionary annuity, used to provide the annuity
granted pursuant to paragraph (d) of Section 7-165 over the total annuity
payments made pursuant thereto to the time of death.
9. Upon the marriage prior to reaching age 55 (except for a surviving
spouse who remarries after December 31, 2000) or death of a person receiving
a surviving spouse annuity, unless a child annuity is payable, the sum of (i)
the excess of the normal and survivor credits, excluding those credits and
interest thereon allowed during periods of disability, attributable to
the employee at the effective date of the annuity or date of death,
whichever first occurred, over the total of all annuity payments
attributable to paragraph (a) 1 of Section 7-142 made to the employee or
surviving spouse plus (ii) the excess of the additional credits,
excluding any such credits used to create a reversionary annuity or used
to provide the annuity attributable to paragraph (a) 2 of Section 7-142
over the total of such payments.
10. Upon the marriage, death or attainment of age 18 of a child
receiving a child annuity, if no other child annuities are payable, the
sum of (i) the excess of the normal and survivor credits excluding those
credits and interest thereon allowed during periods of disability, of
the employee at the effective date of the annuity or date of death,
whichever first occurred, over the total annuity payments attributable
to paragraph (a) 1 of Section 7-142 made to the employee, surviving
spouse and children plus (ii) the excess of the additional credits,
excluding any such credits used to create a reversionary annuity, used
to provide the annuity attributable to paragraph (a) 2 of Section 7-142
over the total annuity payments made to the employee, surviving spouse
and children, pursuant thereto.
11. Upon the death of the participating employee whose annuity was
suspended upon his return to employment:
12. The $3,000 death benefit provided in paragraphs 4 and 6 shall
not be payable to beneficiaries of persons who terminated service prior
to September 8, 1971, unless the payment or agreement for payment
provided by Section 7-144.2 of this Article is made prior to the date of
death.
13. The increase in certain death benefits from $1,000 to $3,000
provided by this amendatory Act of 1987 shall apply only to deaths
occurring on or after January 1, 1988.
(Source: P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/7-165) (from Ch. 108 1/2, par. 7-165)
Sec. 7-165.
Beneficiary annuities.
(a) The beneficiary entitled to a death benefit under paragraph 1, 2 or 3
of Section 7-164 may elect to receive the benefit in the form of an annuity
for life, if the death benefit will provide an immediate annuity of at
least $10 per month.
(b) When a death benefit is payable in the form of an annuity, the
annuity shall begin on the first day of the month following the month of
death of the employee or annuitant;
(c) The amount of beneficiary annuity shall be that which can be
provided from the death benefit under actuarial tables adopted by the
Board.
(d) If a deceased participating employee has additional credits, the
beneficiary may elect to receive an annuity for life in an amount which can
be provided therefrom under actuarial tables adopted by the Board, provided
the annuity would be at least $10 per month.
(Source: P.A. 85-941.)
(40 ILCS 5/7-166) (from Ch. 108 1/2, par. 7-166)
Sec. 7-166. Separation benefits - eligibility. Separation benefits
shall be payable as hereinafter set forth:
(Source: P.A. 99-747, eff. 1-1-17.)
(40 ILCS 5/7-167) (from Ch. 108 1/2, par. 7-167)
Sec. 7-167.
Separation benefits - Payment.
Separation benefits shall be paid
in the form of a single cash sum as soon as practicable after receipt by the
board of:
(Source: P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/7-168) (from Ch. 108 1/2, par. 7-168)
Sec. 7-168.
Separation benefits - Amount.
The amount of the separation benefits shall be the sum of the employee's
accumulated normal, survivor and additional contributions.
(Source: P.A. 87-740.)
(40 ILCS 5/7-169) (from Ch. 108 1/2, par. 7-169)
Sec. 7-169. Separation benefits; repayments.
(a) If an employee who has
received a separation benefit subsequently becomes a participating employee,
and renders at least 2 years of contributing service from the date of such
re-entry, he may pay to the fund the amount of the separation benefit, plus
interest at the effective rate for each year from the date of payment of the
separation benefit to the date of repayment. Upon payment his creditable
service shall be reinstated and the payment shall be credited to his account
as normal contributions. Application must be received by the Board while the employee is an active participant in the Fund or a reciprocal retirement system. Payment must be received while the member is an active participant, except that one payment will be permitted after termination of participation in the Fund or a reciprocal retirement system.
(b) Beginning July 1, 2004, the requirement of
returning to service for at least 2 years does not apply to persons who return
to service as a sheriff's law enforcement employee. This subsection applies only to persons in service on or after July 1, 2004. In the case of such a person who begins to receive a retirement annuity before the effective date of this amendatory Act of the 94th General Assembly, the annuity shall be recalculated prospectively to reflect any credits reinstated as a result of this subsection, with the resulting increase in annuity beginning to accrue on the first annuity payment date following the effective date of this amendatory Act, but not earlier than the date the repayment is received by the Fund.
(Source: P.A. 100-148, eff. 8-18-17.)
(40 ILCS 5/7-169.1) (from Ch. 108 1/2, par. 7-169.1)
Sec. 7-169.1.
Repayment of refund obtained from superseded funds.
An employee who received a refund of deductions from the Illinois
Municipal Public Utility Employees' Annuity and Benefit Fund,
and subsequently becomes a participating employee under this Article and
renders two years of contributing service, may pay to the Fund the amount
of the refund, including any interest received, plus interest at the
effective rate for each year from the date of payment of the refund to
the date of repayment. Upon payment, his
service under the Illinois Municipal Public Utility Employees' Annuity
and Benefit Fund shall be established as creditable service under this
Article and the payment shall be credited as normal contributions to his
account.
(Source: P.A. 84-1028.)
(40 ILCS 5/7-170) (from Ch. 108 1/2, par. 7-170)
Sec. 7-170. Federal Social Security coverage.
(a) It is declared to be the policy and purpose to extend to covered
employees as defined in Section 7-138, the benefits of the Federal Old
Age and Survivors Insurance System as authorized by the Federal Social
Security Act and amendments thereto. To effect this, the board shall
take such action as may be required by applicable State and Federal laws
or regulations.
(b) The board shall execute an agreement with the State Agency to
secure coverage of covered employees as provided in paragraph (a) of
this section.
(c) Each participating municipality and each participating instrumentality
shall remit payment of contributions for Social Security purposes on behalf
of covered employees and covered municipalities and participating
instrumentalities
as required by applicable State and federal laws and regulations.
(d) Contributions of covered employees for Federal
Social Security purposes shall be paid in such
amounts and at such time as required by applicable State and federal laws and regulations.
(e) (Blank).
(f) The board shall maintain such records and submit such reports as may
be required by applicable State and Federal laws or regulations.
(Source: P.A. 96-1084, eff. 7-16-10; 97-933, eff. 8-10-12.)
(40 ILCS 5/7-171) (from Ch. 108 1/2, par. 7-171)
Sec. 7-171. Finance; taxes.
(a) Each municipality other than a school district shall
appropriate an amount sufficient to provide for the current
municipality contributions required by Section 7-172 of
this Article, for the fiscal year for which the appropriation is made
and all amounts due for municipal contributions for previous years.
Those municipalities which have been assessed an annual amount to
amortize its unfunded obligation, as provided in subparagraph 4 of
paragraph (a) of Section 7-172 of this Article, shall include in the
appropriation an amount sufficient to pay the amount assessed. The
appropriation shall be based upon an estimate of assets available for
municipality contributions and liabilities therefor for the fiscal year
for which appropriations are to be made, including funds available from
levies for this purpose in prior years.
(b) For the purpose of providing monies for municipality
contributions, beginning for the year in which a municipality is
included in this fund:
(c) Any county which is served by a regional office of education that
serves 2 or more
counties may include in its
appropriation an amount sufficient to provide its proportionate share of the
municipality contributions for that regional office of education. The tax levy authorized by this Section may include an amount
necessary to provide monies for this contribution.
(d) Any county that is a part of a multiple-county health department
or consolidated health department which is formed under "An Act in
relation to the establishment and maintenance of county and
multiple-county public health departments", approved July 9, 1943, as
amended, and which is a participating instrumentality may include in the
county's appropriation an amount sufficient to provide its proportionate
share of municipality contributions of the department. The tax levy
authorized by this Section may include the amount necessary to provide
monies for this contribution.
(d-5) A school district participating in a special education joint
agreement created under Section 10-22.31 of the School Code that is a
participating instrumentality may include in the school district's
tax levy under this Section an amount sufficient to provide its
proportionate share of the municipality contributions for current and prior
service by employees of the participating instrumentality created under the
joint agreement.
(e) Such tax shall be levied and collected in like manner, with the
general taxes of the municipality and shall be in addition to all other
taxes which the municipality is now or may hereafter be authorized to
levy upon all taxable property therein, and shall be exclusive of and in
addition to the amount of tax levied for general purposes under Section
8-3-1 of the "Illinois Municipal Code", approved May 29, 1961, as
amended, or under any other law or laws which may limit the amount of
tax which the municipality may levy for general purposes. The tax may
be levied by the governing body of the municipality without being
authorized as being additional to all other taxes by a vote of the
people of the municipality.
(f) The county clerk of the county in which any such municipality is
located, in reducing tax levies shall not consider any such tax as a
part of the general tax levy for municipality purposes, and shall not
include the same in the limitation of any other tax rate which may be
extended.
(g) The amount of the tax to be levied in any year shall, within the
limits herein prescribed, be determined by the governing body of the
respective municipality.
(h) The revenue derived from any such tax levy shall be used only
for the contributions required under Section 7-172 and, as collected, shall be
paid to the treasurer of the municipality levying the tax. Monies
received by a county treasurer for use in making contributions to a regional
office of education for its
municipality contributions shall be held by him for that purpose and paid to
the regional office of education in the same manner as other
monies appropriated for the expense of the regional office.
(Source: P.A. 96-1084, eff. 7-16-10; 97-933, eff. 8-10-12.)
(40 ILCS 5/7-172) (from Ch. 108 1/2, par. 7-172)
Sec. 7-172. Contributions by participating municipalities and
participating instrumentalities.
(a) Each participating municipality and each participating
instrumentality shall make payment to the fund as follows:
(b) A separate municipality contribution rate shall be determined
for each calendar year for all participating municipalities together
with all instrumentalities thereof. The municipality contribution rate
shall be determined for participating instrumentalities as if they were
participating municipalities. The municipality contribution rate shall
be the sum of the following percentages:
(c) A separate municipality contribution rate shall be computed for
each participating municipality or participating instrumentality
for its sheriff's law enforcement employees.
A separate municipality contribution rate shall be computed for the
sheriff's law enforcement employees of each forest preserve district that
elects to have such employees. For the period from January 1, 1986 to
December 31, 1986, such rate shall be the forest preserve district's regular
rate plus 2%.
In the event that the Board determines that there is an actuarial
deficiency in the account of any municipality with respect to a person who
has elected to participate in the Fund under Section 3-109.1 of this Code,
the Board may adjust the municipality's contribution rate so as to make up
that deficiency over such reasonable period of time as the Board may determine.
(d) The Board may establish a separate municipality contribution
rate for all employees who are program participants employed under the
federal Comprehensive Employment Training Act by all of the
participating municipalities and instrumentalities. The Board may also
provide that, in lieu of a separate municipality rate for these
employees, a portion of the municipality contributions for such program
participants shall be refunded or an extra charge assessed so that the
amount of municipality contributions retained or received by the fund
for all CETA program participants shall be an amount equal to that which
would be provided by the separate municipality contribution rate for all
such program participants. Refunds shall be made to prime sponsors of
programs upon submission of a claim therefor and extra charges shall be
assessed to participating municipalities and instrumentalities. In
establishing the municipality contribution rate as provided in paragraph
(b) of this Section, the use of a separate municipality contribution
rate for program participants or the refund of a portion of the
municipality contributions, as the case may be, may be considered.
(e) Computations of municipality contribution rates for the
following calendar year shall be made prior to the beginning of each
year, from the information available at the time the computations are
made, and on the assumption that the employees in each participating
municipality or participating instrumentality at such time will continue
in service until the end of such calendar year at their respective rates
of earnings at such time.
(f) Any municipality which is the recipient of State allocations
representing that municipality's contributions for retirement annuity
purposes on behalf of its employees as provided in Section 12-21.16 of
the Illinois Public Aid Code shall pay the allocations so
received to the Board for such purpose. Estimates of State allocations to
be received during any taxable year shall be considered in the
determination of the municipality's tax rate for that year under Section
7-171. If a special tax is levied under Section 7-171, none of the
proceeds may be used to reimburse the municipality for the amount of State
allocations received and paid to the Board. Any multiple-county or
consolidated health department which receives contributions from a county
under Section 11.2 of "An Act in relation to establishment and maintenance
of county and multiple-county health departments", approved July 9, 1943,
as amended, or distributions under Section 3 of the Department of Public
Health Act, shall use these only for municipality contributions by the
health department.
(g) Municipality contributions for the several purposes specified
shall, for township treasurers and employees in the offices of the
township treasurers who meet the qualifying conditions for coverage
hereunder, be allocated among the several school districts and parts of
school districts serviced by such treasurers and employees in the
proportion which the amount of school funds of each district or part of
a district handled by the treasurer bears to the total amount of all
school funds handled by the treasurer.
From the funds subject to allocation among districts and parts of
districts pursuant to the School Code, the trustees shall withhold the
proportionate share of the liability for municipality contributions imposed
upon such districts by this Section, in respect to such township treasurers
and employees and remit the same to the Board.
The municipality contribution rate for an educational service center shall
initially be the same rate for each year as the regional office of
education or school district
which serves as its administrative agent. When actuarial data become
available, a separate rate shall be established as provided in subparagraph
(i) of this Section.
The municipality contribution rate for a public agency, other than a
vocational education cooperative, formed under the Intergovernmental
Cooperation Act shall initially be the average rate for the municipalities
which are parties to the intergovernmental agreement. When actuarial data
become available, a separate rate shall be established as provided in
subparagraph (i) of this Section.
(h) Each participating municipality and participating
instrumentality shall make the contributions in the amounts provided in
this Section in the manner prescribed from time to time by the Board and
all such contributions shall be obligations of the respective
participating municipalities and participating instrumentalities to this
fund. The failure to deduct any employee contributions shall not
relieve the participating municipality or participating instrumentality
of its obligation to this fund. Delinquent payments of contributions
due under this Section may, with interest, be recovered by civil action
against the participating municipalities or participating
instrumentalities. Municipality contributions, other than the amount
necessary for employee contributions, for
periods of service by employees from whose earnings no deductions were made
for employee contributions to the fund, may be charged to the municipality
reserve for the municipality or participating instrumentality.
(i) Contributions by participating instrumentalities shall be
determined as provided herein except that the percentage derived under
subparagraph 2 of paragraph (b) of this Section, and the amount payable
under subparagraph 4 of paragraph (a) of this Section, shall be based on
an amortization period of 10 years.
(j) Notwithstanding the other provisions of this Section, the additional unfunded liability accruing as a result of Public Act 94-712
shall be amortized over a period of 30 years beginning on January 1 of the
second calendar year following the calendar year in which Public Act 94-712 takes effect, except that the employer may provide for a longer amortization period by adopting a resolution or ordinance specifying a 35-year or 40-year period and submitting a certified copy of the ordinance or resolution to the fund no later than June 1 of the calendar year following the calendar year in which Public Act 94-712 takes effect.
(k) If the amount of a participating employee's reported earnings for any of the 12-month periods used to determine the final rate of earnings exceeds the employee's 12-month reported earnings with the same employer for the previous year by the greater of 6% or 1.5 times the annual increase in the Consumer Price Index-U, as established by the United States Department of Labor for the preceding September, the participating municipality or participating instrumentality that paid those earnings shall pay to the Fund, in addition to any other contributions required under this Article, the present value of the increase in the pension resulting from the portion of the increase in reported earnings that is in excess of the greater of 6% or 1.5 times the annual increase in the Consumer Price Index-U, as determined by the Fund. This present value shall be computed on the basis of the actuarial assumptions and tables used in the most recent actuarial valuation of the Fund that is available at the time of the computation.
Whenever it determines that a payment is or may be required under this subsection (k), the fund shall calculate the amount of the payment and bill the participating municipality or participating instrumentality for that amount. The bill shall specify the calculations used to determine the amount due. If the participating municipality or participating instrumentality disputes the amount of the bill, it may, within 30 days after receipt of the bill, apply to the fund in writing for a recalculation. The application must specify in detail the grounds of the dispute. Upon receiving a timely application for recalculation, the fund shall review the application and, if appropriate, recalculate the amount due.
The participating municipality and participating instrumentality contributions required under this subsection (k) may be paid in the form of a lump sum within 90 days after receipt of the bill. If the participating municipality and participating instrumentality contributions are not paid within 90 days after receipt of the bill, then interest will be charged at a rate equal to the fund's annual actuarially assumed rate of return on investment compounded annually from the 91st day after receipt of the bill. Payments must be concluded within 3 years after receipt of the bill by the participating municipality or participating instrumentality.
When assessing payment for any amount due under this subsection (k), the fund shall exclude earnings increases resulting from overload or overtime earnings.
When assessing payment for any amount due under this subsection (k), the fund shall exclude earnings increases resulting from payments for unused vacation time, but only for payments for unused vacation time made in the final 3 months of the final rate of earnings period.
When assessing payment for any amount due under this subsection (k), the fund shall also exclude earnings increases attributable to standard employment promotions resulting in increased responsibility and workload.
When assessing payment for any amount due under this subsection (k), the fund shall exclude reportable earnings increases resulting from periods where the member was paid through workers' compensation.
This subsection (k) does not apply to earnings increases paid to individuals under contracts or collective bargaining agreements entered into, amended, or renewed before January 1, 2012 (the effective date of Public Act 97-609), earnings increases paid to members who are 10 years or more from retirement eligibility, or earnings increases resulting from an increase in the number of hours required to be worked.
When assessing payment for any amount due under this subsection (k), the fund shall also exclude earnings attributable to personnel policies adopted before January 1, 2012 (the effective date of Public Act 97-609) as long as those policies are not applicable to employees who begin service on or after January 1, 2012 (the effective date of Public Act 97-609).
The change made to this Section by Public Act 100-139 is a clarification of existing law and is intended to be retroactive to January 1, 2012 (the effective date of Public Act 97-609).
(Source: P.A. 102-849, eff. 5-13-22.)
(40 ILCS 5/7-172.1) (from Ch. 108 1/2, par. 7-172.1)
Sec. 7-172.1. Actions to enforce payments by municipalities and
instrumentalities.
(a) If any participating municipality or participating
instrumentality fails to transmit to the Fund contributions required of it
under this Article or contributions collected by it from its participating
employees for the purposes of this Article for more than
60 days after the payment of such contributions is due, the Fund, after
giving notice to such municipality or instrumentality, may certify to
the State Comptroller the amounts of such delinquent payments in accordance with any applicable rules of the Comptroller, and the
Comptroller shall deduct the amounts so certified or any part thereof
from any payments of State funds to the municipality or instrumentality
involved and shall remit the amount so deducted to the Fund. If State
funds from which such deductions may be made are not available, the Fund
may proceed against the municipality or instrumentality to recover the
amounts of such delinquent payments in the appropriate circuit court.
(b) If any participating municipality fails to transmit to the Fund
contributions required of it under this Article or contributions collected
by it from its participating employees for the purposes of this Article for
more than 60 days after the payment of such contributions is due, the Fund,
after giving notice to such municipality, may certify the fact of such
delinquent payment to the county treasurer of the county in which such
municipality is located, who shall thereafter remit the amounts collected
from the tax levied by the municipality under Section 7-171 directly to
the Fund.
(c) If reports furnished to the Fund by the municipality or
instrumentality involved are inadequate for the computation of the
amounts of such delinquent payments, the Fund may provide for such audit
of the records of the municipality or instrumentality as may be required
to establish the amounts of such delinquent payments. The municipality
or instrumentality shall make its records available to the Fund for the
purpose of such audit. The cost of such audit shall be added to the
amount of the delinquent payments and shall be recovered by the Fund
from the municipality or instrumentality at the same time and in the
same manner as the delinquent payments are recovered.
(Source: P.A. 99-8, eff. 7-9-15; 99-239, eff. 8-3-15; 99-642, eff. 7-28-16.)
(40 ILCS 5/7-172.2) (from Ch. 108 1/2, par. 7-172.2)
Sec. 7-172.2.
In addition to the payments otherwise required by this
Article, each participating municipality and each participating
instrumentality shall make payment of Social Security contributions and
medicare taxes in the amounts and in the manner provided by law. Each employee shall make contributions for Federal Social Security and medicare taxes, for periods during which he or she is a covered employee, as required by the Social Security Enabling Act and State and federal law.
(Source: P.A. 97-933, eff. 8-10-12.)
(40 ILCS 5/7-173) (from Ch. 108 1/2, par. 7-173)
Sec. 7-173. Contributions by employees.
(a) Each participating employee shall make contributions to the fund as
follows:
(b) (Blank).
(c) Contributions shall be deducted from each corresponding payment
of earnings paid to each employee and shall be remitted to the board by
the participating municipality or participating instrumentality making
such payment. The remittance, together with a report of the earnings
and contributions shall be made as directed by the board. For township
treasurers and employees of township treasurers qualifying as employees
hereunder, the contributions herein required as deductions from salary
shall be withheld by the school township trustees from funds available
for the payment of the compensation of such treasurers and employees as
provided in the School Code and remitted to the board.
(d) An employee who has made additional contributions under
paragraph (a)2 of this Section may upon retirement or at any time prior
thereto, elect to withdraw the total of such additional contributions
including interest credited thereon to the end of the preceding calendar
year, to the extent permitted by the federal Internal Revenue Code of 1986, as now or hereafter amended.
(e) Failure to make the deductions for employee contributions
provided in paragraph (c) of this Section shall not relieve the employee
from liability for such contributions. The amount of such liability may
be deducted, with interest charged under Section 7-209, from any
annuities or benefits payable hereunder to the employee or any other
person receiving an annuity or benefit by reason of such employee's
participation.
(f) A participating employee who has at least 40 years of creditable
service in the Fund may elect to cease making the contributions required
under this Section. The status of the employee under this Article shall be
unaffected by this election, except that the employee shall not receive any
additional creditable service for the periods of employment following the
election. An election under this subsection relieves the employer from
making additional employer contributions in relation to that employee.
(Source: P.A. 97-333, eff. 8-12-11; 97-933, eff. 8-10-12; 98-218, eff. 8-9-13.)
(40 ILCS 5/7-173.1) (from Ch. 108 1/2, par. 7-173.1)
Sec. 7-173.1. Additional contribution by sheriff's law enforcement
employees.
(a) Each sheriff's law enforcement employee shall make an additional
contribution of 1% of earnings, which shall be considered as normal
contributions. For earnings on or after July 1, 1988, the additional
contribution shall be 2% of earnings. For earnings on or after the effective date of this amendatory Act of the 94th General Assembly, the additional contribution shall be 3% of earnings; this increase
is intended to defray the employee's portion of the cost of the benefit
increases provided by this amendatory Act of the 94th General Assembly.
This additional contribution shall be payable for retroactive service periods
which the employee elects to establish and to periods of authorized leave of
absence.
(b) If the employee is awarded a retirement annuity under Section
7-142 and not under Section 7-142.1, then the additional contribution required
under this Section shall be refunded with interest or paid as provided in
subsection (c). If the employee returns to a participating status as a
sheriff's law enforcement employee, the employee may repay the amount refunded
with interest and upon subsequent retirement be entitled to a recomputation of
the retirement annuity under Section 7-142.1 if the total service as a
sheriff's law enforcement employee meets the requirements of that Section.
(c) Instead of a refund under subsection (b), the retiring employee may
elect to convert the amount of the refund into an annuity, payable
separately from the retirement annuity. If the annuitant dies before the
guaranteed amount has been distributed, the remainder shall be paid in a lump
sum to the designated beneficiary of the annuitant. The Board shall adopt any
rules necessary for the implementation of this subsection.
(Source: P.A. 94-712, eff. 6-1-06.)
(40 ILCS 5/7-173.2) (from Ch. 108 1/2, par. 7-173.2)
Sec. 7-173.2.
Pickup of employee contributions.
(a) Until July 1, 1984, each participating municipality and each
participating instrumentality may elect, for all of its employees, to pick up
the employee contributions required by subparagraphs 1 and 3 of subsection (a)
of Section 7-173 and, in the case of sheriff's law enforcement employees,
required by Section 7-173.1. The pick up may be for employee contributions on
earnings received by employees after December 31, 1981 and shall be applicable
to the contributions on total earnings paid in any month. The decision to pick
up contributions shall be made by the governing body.
Beginning July 1, 1984, the pick up of employee contributions shall cease to
be optional. Each participating municipality and participating instrumentality
shall pick up the employee contributions required by subparagraphs 1 and 3 of
subsection (a) of Section 7-173 and, in the case of sheriff's law enforcement
employees, contributions required by Section 7-173.1, for all compensation
earned after such date.
(b) Contributions that are picked up shall be treated as employer
contributions in determining tax treatment under the United States Internal
Revenue Code. The employee contribution shall be paid from the same source
of funds as is used in payment of earnings to the employee and may not be
paid from funds raised by the tax levy authorized by Section 7-171. The
contributions shall be picked up by a reduction in earnings payment to
employees. Employee contributions that are picked up shall be considered as
earnings under Section 7-114. If a participating municipality or
participating instrumentality fails to report participating employee earnings
which should have been reported to the fund and pays the employee the full
amount of earnings including employee contributions which should have been
picked up and forwarded to the fund, then the employee shall make payment of
the employee contributions to the fund on behalf of employer and such
contributions shall be considered as picked up contributions
if paid in the year the earnings were received, or by January 31st of the
following year, and are reflected as picked up on reports to the Internal
Revenue Service. If they cannot be so reflected, or if received after that
date, they shall not be treated as picked up contributions. Picked up employee
contributions shall be considered as employee contributions in computing
benefits paid under this Article 7.
(c) Subject to the requirements of federal law, an employee may elect to
have the employer pick up optional contributions that the employee has elected
to pay to the Fund, and the contributions so picked up shall be treated as
employer contributions for the purposes of determining federal tax treatment.
The employer shall pick up the contributions by a reduction in the cash salary
of the employee and shall pay the contributions from the same source of funds
that is used to pay earnings to the employee. The employee's election to have
the optional contributions picked up is irrevocable and the optional
contributions may not thereafter be prepaid, by direct payment or otherwise.
(Source: P.A. 90-766, eff. 8-14-98.)
(40 ILCS 5/7-174) (from Ch. 108 1/2, par. 7-174)
Sec. 7-174. Board created.
(a) A board of 8 members shall
constitute a board of trustees authorized to carry out the provisions of
this Article. Each trustee shall be a participating employee of a
participating municipality or participating instrumentality or an annuitant
of the Fund and no person shall be eligible to become a trustee after January
1, 1979 who does not have the minimum service credit in this Fund to qualify for a pension.
(b) The board shall consist of representatives of various groups as
follows:
(c) A person elected as a trustee shall qualify as a trustee, after
declaration by the board that he has been duly elected, upon taking and
subscribing to the constitutional oath of office and filing same in the
office of the Fund.
(d) The term of office of each trustee shall begin upon January 1 of
the year following the year in which he is elected and shall continue
for a period of 5 years and until a successor has been elected and
qualified, or until prior resignation, death, incapacity or
disqualification.
(e) Any elected trustee (other than the annuitant trustee) shall be
disqualified immediately upon termination of employment with all participating
municipalities and instrumentalities thereof or upon any change in status which
removes any such trustee from all employments within the group he represents.
The annuitant trustee shall be disqualified upon termination of his or her
annuity.
(f) The trustees shall fill any vacancy in the board by appointment,
for the period until the next election of trustees, or, if the remaining
term is less than 2 years, for the remainder of the term, and until his
successor has been elected and qualified.
(g) Trustees shall serve without compensation, but shall be
reimbursed for any reasonable expenses incurred in attending meetings of
the board and in performing duties on behalf of the Fund and for the
amount of any earnings withheld by any employing municipality or
participating instrumentality because of attendance at any board
meeting.
(h) Each trustee shall be entitled to
one vote on any and all actions before the board. At least 5 concurring votes
shall be necessary for every decision or action by the board at any of its
meetings. No decision or action shall become effective unless presented and so
approved at a regular or duly called special meeting of the board.
(Source: P.A. 102-479, eff. 8-20-21.)
(40 ILCS 5/7-174.5)
Sec. 7-174.5. Leaves of absence for trustees. Each participating municipality or instrumentality that employs an employee who is an elected trustee shall make available to the elected trustee at least 20 days of paid leave of absence per year for the purpose of attending meetings of the Board of Trustees, committee meetings of the Board of Trustees, and seminars regarding issues for which the Board of Trustees is responsible. The Fund may reimburse affected participating municipalities and instrumentalities for the actual cost of hiring a substitute employee during such leaves of absence.
(Source: P.A. 102-943, eff. 1-1-23.)
(40 ILCS 5/7-175) (from Ch. 108 1/2, par. 7-175)
Sec. 7-175. Board elections.
(a) During the period beginning on August 1 and ending on September 15
of each year the board shall accept nominations of candidates for election
to the trusteeships for terms beginning the next January 1, new
trusteeships or vacancies to be filled by election.
(b) All nominations shall be by petition. Three petitions for an
executive trustee shall be signed by governing bodies of contributing
participating municipalities or instrumentalities.
A petition for an
employee trustee shall be signed by at least 350 participating employees
who were participants during July of the current year and who, if their
employment status remained unchanged, would be eligible to vote for such
candidate at the following election.
A petition for an annuitant trustee shall be signed by at least 100 persons
who were annuitants of the Fund during July of the current year and who, if
their annuitant status remains unchanged, would be eligible to vote for the
candidate at the following election.
(c) A separate ballot shall be used for each class of trustee and the
names of all candidates properly nominated in petitions received by the
board shall be placed in alphabetical order upon the proper ballot. Where
two employee trustees are elected to a full term in the same year, there
shall be one election for the two trusteeships and the two candidates
getting the highest number of votes shall be elected.
(d) At any election, each contributing participating municipality and
participating instrumentality and each contributing participating employee
employed by such participating municipality or participating
instrumentality during September of any year, shall be entitled to vote as
follows:
(e) The election shall be by ballot pursuant to the rules and
regulations established by the board and shall be completed by December 31
of the year. The results shall be entered in the minutes of the meeting of
the board following the tally of votes.
(f) In case of a tie vote, the candidate employed by or retired from the
participating municipality or participating instrumentality having the greatest
number of participating employees at the time shall be elected.
(g) Notwithstanding any other provision of this Article, if only one candidate is properly nominated in petitions received by the Board, that candidate shall be deemed the winner. In the case of 2 employee trustees elected to a full term in the same year, if only 2 candidates are properly nominated in petitions received by the Board, those 2 candidates shall both be deemed winners. If a candidate is deemed a winner under this paragraph, no election under this Section or Section 7-175.1 shall be required.
(Source: P.A. 98-932, eff. 8-15-14.)
(40 ILCS 5/7-175.1) (from Ch. 108 1/2, par. 7-175.1)
Sec. 7-175.1. Election of employee and annuitant trustees.
(a) The board shall prepare and send ballots and ballot envelopes to the
employees and annuitants eligible to vote as of September of that
year. The ballots shall contain the names of all candidates in alphabetical
order and an appropriate place where a name may be written in on
the ballot.
The ballot envelope shall have on the outside a form of certificate stating
that the person voting the ballot is a participating employee or annuitant
entitled to vote.
(b) Employees and annuitants, upon receipt of the ballot, shall vote the
ballot and place it in the ballot envelope, seal the envelope, execute the
certificate thereon and return the ballot to the Fund.
(c) The board shall set a final date for ballot return, and ballots
received prior to that date in a ballot envelope with a
properly executed certificate and properly voted, shall be valid ballots.
(d) The board shall set a day for counting the ballots and
name judges and clerks of election to conduct the count of ballots, and shall
make any rules and regulations necessary for the conduct of the
count.
(e) No election under this Section shall be required if a candidate is deemed the winner under subsection (g) of Section 7-175.
(f) Nothing in this Section shall preclude the Board from adopting rules that provide for Internet balloting or phone balloting in addition to election by mail under this Section. An Internet or phone ballot cast in accordance with rules adopted under this subsection shall be a valid ballot.
(Source: P.A. 100-935, eff. 1-1-19.)
(40 ILCS 5/7-176) (from Ch. 108 1/2, par. 7-176)
Sec. 7-176.
Board officers.
The board shall elect from its members a president, vice president and
secretary, to serve at the board's pleasure. They shall perform the duties
designated by the board and serve without compensation.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-177) (from Ch. 108 1/2, par. 7-177)
Sec. 7-177. Board meetings.
The board shall hold regular meetings at least 4 times in each year and such special meetings
at such other times as may be called by the executive director upon written
notice of at least 3 trustees. At least 5 days' notice of each meeting
shall be given to each trustee. All meetings of the board shall be open to
the public and shall be held in the offices of the board or in any other
place specifically designated in the notice of any meeting.
(Source: P.A. 98-218, eff. 8-9-13.)
(40 ILCS 5/7-178) (from Ch. 108 1/2, par. 7-178)
Sec. 7-178.
Board powers and duties.
The board shall have the powers and duties stated in Sections 7-179 to
7-200, inclusive, in addition to such other powers and duties provided in
this Article.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-179) (from Ch. 108 1/2, par. 7-179)
Sec. 7-179.
To authorize and suspend annuities.
To authorize or suspend the payment of any annuity or benefit in
accordance with this Article.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-180) (from Ch. 108 1/2, par. 7-180)
Sec. 7-180.
To prepare and approve budget.
To prepare and approve, prior to the beginning of each calendar year, a
budget of operating expenses for such year.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-181) (from Ch. 108 1/2, par. 7-181)
Sec. 7-181.
To subpoena witnesses.
To compel witnesses to attend meetings and to testify upon any necessary
matter concerning the fund and allow fees not in excess of $10 to any such
witness for such attendance upon any one day.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-182) (from Ch. 108 1/2, par. 7-182)
Sec. 7-182.
To authorize municipality contribution rates and adopt actuarial tables and
interest rates.
To authorize municipality contribution rates and adopt actuarial tables
and establish effective and prescribed rates of interest.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-183) (from Ch. 108 1/2, par. 7-183)
Sec. 7-183.
To request information.
To request such information from any participating or covered employee
or from any participating or covered municipality or instrumentality
thereof or participating instrumentality as is necessary for the proper
operation of the fund.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-184) (from Ch. 108 1/2, par. 7-184)
Sec. 7-184.
To determine prior service.
To determine the length of prior service from such information as is
available. Any such determination shall be conclusive as to any such period
of service, unless the board reconsiders the case and changes the
determination.
The change to this Section made by this amendatory Act of the 91st General
Assembly applies without regard to whether the individual is in service on or
after the effective date of this amendatory Act.
(Source: P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/7-185) (from Ch. 108 1/2, par. 7-185)
Sec. 7-185.
To establish offices.
To establish an office or offices with suitable space for meetings of
the board and for use of the necessary administrative personnel. All books
and records of the fund shall be kept in such office or offices or in such
other places as the board shall designate for safekeeping.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-186) (from Ch. 108 1/2, par. 7-186)
Sec. 7-186.
To appoint executive director.
To appoint an executive director to manage the office and carry out the
technical administrative duties of the fund.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-187) (from Ch. 108 1/2, par. 7-187)
Sec. 7-187.
To appoint actuary.
To appoint an actuary to perform all the necessary actuarial
requirements of the fund.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-188) (from Ch. 108 1/2, par. 7-188)
Sec. 7-188.
To appoint investment counsel.
To appoint such investment counsel as, in the opinion of the board, may
be required from time to time.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-189) (from Ch. 108 1/2, par. 7-189)
Sec. 7-189.
To obtain additional services.
To obtain by employment or by contract such additional actuarial
services and such legal, medical, clerical or other services as is required
for the efficient administration of the fund.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-190) (from Ch. 108 1/2, par. 7-190)
Sec. 7-190.
To fix compensation of employees.
To determine and fix the rate of compensation to be paid to the
executive director, actuary, investment counsel, auditor, legal or medical
counsel, and employees.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-191) (from Ch. 108 1/2, par. 7-191)
Sec. 7-191. To have accounts audited.
To have the accounts of the fund audited annually by a certified public
accountant.
(Source: P.A. 102-210, eff. 1-1-22.)
(40 ILCS 5/7-192) (from Ch. 108 1/2, par. 7-192)
Sec. 7-192.
To submit annual statements.
To submit an annual statement to the governing body of each
participating municipality and governing body of each participating
instrumentality and to any participating employee upon request, as soon
after the end of each calendar year as possible. The statement shall
include the following:
a. A balance sheet, showing the financial and actuarial condition of the
fund as of the end of the calendar year;
b. A statement of receipts and disbursements during such year;
c. A statement showing changes in the asset, liability, reserve and
surplus accounts during such year;
d. A detailed statement of investments as of the end of such year;
e. Such additional statistics as are deemed necessary for a proper
interpretation of the condition of the fund.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-193) (from Ch. 108 1/2, par. 7-193)
Sec. 7-193.
To provide individual statements.
To submit an individual statement to any participating employee upon his
reasonable request. The statement shall indicate the amount of
accumulations of each type to the employee's credit, as of the latest date
practicable.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-194) (from Ch. 108 1/2, par. 7-194)
Sec. 7-194.
To accept gifts.
To accept any gift, grant or bequest of any money or securities for the
purposes designated by the grantor if such purpose is specified as
providing cash benefits to some or all of the participating employees or
annuitants of this fund, or if no such purposes are designated, for the
purpose of distribution to all the participating employees at the end of
the year in the same proportion as the interest at the effective rate is
allocated for the year.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-195) (from Ch. 108 1/2, par. 7-195)
Sec. 7-195.
To make investments.
To determine the limitations on the amounts of cash to be invested in
order to maintain such cash balances as may be deemed advisable to meet
current annuity, benefit and expense requirements, and invest the available
cash within these limits in securities, in accordance with Section 7-201.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-195.1) (from Ch. 108 1/2, par. 7-195.1)
Sec. 7-195.1. To establish and maintain a revolving account. To establish and maintain a revolving account in a bank or savings and
loan association, approved by the
State Treasurer as a State depositary and having capital funds, represented
by capital, surplus, and undivided profits, of at least 5 million dollars,
for the purpose of making payments of annuities, benefits, and
administrative expenses and payments to the State Agency provided in
Section 7-170. All funds deposited in such account shall be placed in the
name of the Fund and shall be withdrawn only by a check or draft upon the
bank or savings and loan association signed by the president of the
board or the executive director, as the
board may direct. In case the president or executive director, whose
signature appears upon any check or draft, after attaching his signature
ceases to hold office before the delivery thereof to the payee, his
signature nevertheless shall be valid and sufficient for all purposes with
the same effect as if he had remained in office until delivery thereof. The
revolving account shall be created by resolution of the board. The monies in the revolving account shall
be held and expenditures shall be made by the Fund for the purposes herein
set forth. The Fund shall reimburse the revolving account for expenditures
for such purposes.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of the Public Funds Investment Act, as now or hereafter
amended. The limitations set forth in such Section 6 shall be applicable
only at the time of investment and shall not require the liquidation of
any investment at any time.
(Source: P.A. 99-8, eff. 7-9-15.)
(40 ILCS 5/7-196) (from Ch. 108 1/2, par. 7-196)
Sec. 7-196.
To keep data.
To keep in convenient form the data necessary for all required
calculations and valuations as required by the actuary.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-197) (from Ch. 108 1/2, par. 7-197)
Sec. 7-197.
To keep permanent records.
To keep a permanent record of all the proceedings of the board and such
other records as shall be necessary or desirable for administration of the
Fund. For the protection of participating employees and their
beneficiaries, the Board, the Executive Director, and its agents and
employees are prohibited from disclosing the contents of an employee's
files, records, papers or communications relating to individual employees,
except for purposes directly connected with the administration of the Fund.
In any judicial or administrative proceeding except as such proceeding is
directly concerned with the administration of the Fund, such files,
records, papers and communications shall be deemed privileged
communications. The proceedings of the Board and reports of participating
municipalities and instrumentalities shall be public records open to
inspection.
(Source: Laws 1967, p. 2091.)
(40 ILCS 5/7-197.1) (from Ch. 108 1/2, par. 7-197.1)
Sec. 7-197.1.
To reproduce records.
To have any records kept by the board photographed, microfilmed or
otherwise reproduced on film. The photographs, microfilm and reproductions
shall be deemed original records and documents for all purposes, including
introduction in evidence before all courts and administrative agencies.
(Source: P.A. 76-1820.)
(40 ILCS 5/7-198) (from Ch. 108 1/2, par. 7-198)
Sec. 7-198.
To make rules.
To establish such rules and regulations not inconsistent with the other
provisions of this Article as are necessary or desirable for the efficient
administration of the fund, including, without limitation, the time and
manner of reporting and making contributions by participating
municipalities and participating instrumentalities.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-199) (from Ch. 108 1/2, par. 7-199)
Sec. 7-199.
To appoint committees.
To appoint committees of 3 or more trustees to perform such functions as
may be directed by the board.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-199.1) (from Ch. 108 1/2, par. 7-199.1)
Sec. 7-199.1.
To administer a joint group accident and health
insurance program in accordance with this Section.
(a) The board may purchase and administer a joint group accident and
health insurance policy as defined in Section 4 of the "Illinois Insurance
Code", approved June 29, 1937, as amended, for the benefit of one or more
classes of employees or retired employees of participating municipalities
and participating instrumentalities, or their spouses or surviving
spouses.
(b) All participating municipalities and participating instrumentalities
are hereby authorized to participate in any such joint group accident and
health insurance policy established under this Section.
(c) The board may promulgate such rules as may be necessary or
convenient relating to the purchase and administration of any such policy,
and to the conditions and terms of participation therein and withdrawal
therefrom by participating municipalities and participating instrumentalities.
(d) Any monies received by the board relating to its duties under this
Section shall not be deemed contributions to or assets of the fund, and all
such monies shall be held by the board in a separate account.
(e) The board shall submit an annual report of its activities under this
Section to each municipality and instrumentality participating in a policy
administered under this Section.
(f) The group accident and health insurance program established under
this Section is not and shall not be construed to be a pension or retirement
benefit for purposes of Section 5 of Article XIII of the Illinois Constitution
of 1970.
(Source: P.A. 84-812.)
(40 ILCS 5/7-199.2) (from Ch. 108 1/2, par. 7-199.2)
Sec. 7-199.2.
To determine unfunded liability.
To cause to be
actuarially determined the unfunded liability existing in the Fund as of the
date provided by subsection (c) of Section 5-1 of the School Code by reason
of annuities and other benefits payable and to become payable from the Fund
to persons specified in that subsection with respect to periods of service
ending on or before that date, to report the amount so determined to each
school board required under that subsection to pay a proportionate share of
that amount to the Fund, and to receive and apply in accordance with this
Article all amounts so paid to the Fund by those school boards.
(Source: P.A. 87-473.)
(40 ILCS 5/7-199.3)
Sec. 7-199.3.
To establish and administer deferred compensation and
tax-deferred annuity programs for units of local government.
The Board may establish and administer deferred compensation, tax deferred
annuity, and similar tax-savings programs for employees of units of local
government, which shall be known as the "IMRF-Plus" program. The program shall
provide for the Board to review proposed investment offerings and shall require
that only investments determined to be acceptable by the Board may be used for
investing compensation contributed to the program.
The program shall include appropriate provisions pertaining to its day to day
operation, including methods of electing to contribute income, methods of
changing the amount of income contributed, methods of selecting from among
investment options available under the program, and any other provisions that
the Board may deem appropriate.
The program shall provide for the preparation of pamphlets describing the
program and outlining the options and opportunities available to local
government employees under the program. These pamphlets shall be distributed
from time to time to all eligible employees.
The program established under this Section shall not be implemented or
amended until the Board is satisfied that compensation contributed under the
program is not subject to income tax for the year in which it is earned and
that the taxation of such compensation will be deferred until the time of its
distribution to the employee.
The program shall also provide for the recovery of the expenses of its
administration by charging those expenses against the earnings from
investments, by charging fees equitably prorated among the participating local
government employees, or by some other appropriate and equitable method
determined by the Board. Different methods for recovery of administrative
expenses may be provided in relation to different types of investment programs,
and the Board may provide for the allocation of administration expenses among
varying types of programs for this purpose.
The Board shall review and oversee the administration of the program.
This Section does not limit the power or authority of any unit of local
government, school district, or institution supported in whole or in part by
public funds to establish and administer any other deferred compensation plans
or tax-deferred annuity programs that may be authorized by law.
(Source: P.A. 90-448, eff. 8-16-97.)
(40 ILCS 5/7-200) (from Ch. 108 1/2, par. 7-200)
Sec. 7-200.
To carry on other duties.
To carry on generally any other reasonable activities, including,
without limitation, the making of administrative decisions on participation
and coverage, which are necessary for carrying out the intent of this fund
in accordance with the provisions of this Article.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-201) (from Ch. 108 1/2, par. 7-201)
Sec. 7-201.
The assets of the fund in excess of the amount of
cash required for current operation as determined by the board shall be
invested, subject to the requirements and restrictions set forth in Sections
1-109, 1-109.1, 1-109.2, 1-110, 1-111, 1-114 and 1-115 of this Code.
No bank or savings and loan association shall receive investment funds
as permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating to certain
investments of public funds by public agencies", approved July 23, 1943, as
now or hereafter amended. The limitations set forth in such Section 6
shall be applicable only at the time of investment and shall not require
the liquidation of any investment at any time.
The board may sell any security belonging to the fund at any time in
its judgment that it is necessary or desirable to do so.
The board shall have the authority to enter into such agreements and to
execute such documents as it determines to be necessary to complete any
investment transaction.
All investments shall be clearly held and accounted for to indicate ownership
by the board. The board may direct the registration of securities or the
holding of interests in real property in its own name or in the name of a
nominee created for the express purpose of registration of securities or
the holding of interests in real property by a savings and loan
association or national or State bank or trust company authorized to
conduct a trust business in the State of Illinois. The
board may hold title to interests in real property in the name of the Fund
or in the name of a title holding corporation created for the express
purpose of holding title to interests in real property.
Investments shall be carried at cost or at a book value in accordance with
generally accepted accounting principles and accounting procedures approved
by the board.
The book value of investments held by any pension fund or retirement system
in one or more commingled investment accounts shall be the cost of its units
of participation in such commingled account or accounts as recorded on the
books of the board.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/7-201.1) (from Ch. 108 1/2, par. 7-201.1)
Sec. 7-201.1.
Participation in commingled investment funds-Transfer of
investment functions and securities.
(a) The retirement board may invest in any commingled investment fund or
funds established and maintained by the Illinois State Board of Investment
under the provisions of Article 22A of this Code. The book value of all
commingled equity participations plus the book value of other stock
investments owned by this system shall not exceed the maximum permissible
percentage rate for equity investments prescribed in Section 7-201. All
commingled fund participations shall be subject to the law governing the
Illinois State Board of Investment and the rules, policies and directives
of that Board.
(b) The retirement board may, by resolution duly adopted by a majority
vote of its membership, transfer to the Illinois State Board of Investment
created by Article 22A of this Code, for management and administration, all
investments owned by the Fund of every kind and character. Upon completion
of such transfer, the authority of the retirement board to make investments
shall terminate. Thereafter, all investments of the reserves of the Fund
shall be made by the Illinois State Board of Investment in accordance with
the provisions of Article 22A of this Code.
Such transfer shall be made not later than the first day of the fourth
month next following the date of such resolution. Before such transfer an
audit of such investments shall be completed by a certified public
accountant selected by the Illinois State Board of Investment and approved
by the Auditor General of the State of Illinois. The expense of such audit
shall be defrayed by the retirement board.
(Source: P.A. 78-645.)
(40 ILCS 5/7-202) (from Ch. 108 1/2, par. 7-202)
Sec. 7-202.
Accounts.
An adequate system of accounts shall be kept in accordance with
generally accepted accounting and sound actuarial principles. The accounts
and reserves designated in Section 7-203 to 7-208, inclusive, shall be
maintained.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-203) (from Ch. 108 1/2, par. 7-203)
Sec. 7-203.
Employee reserves.
Separate reserves shall be maintained for each participating employee in
such detail as is necessary to administer all benefits provided herein, and
to segregate accurately the separate liabilities of each participating
municipality and its instrumentalities, or of any participating
instrumentality, with respect to each participating employee.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-204) (from Ch. 108 1/2, par. 7-204)
Sec. 7-204.
Municipality reserves.
(a) Except as provided in paragraph (b) of this Section, each
participating municipality and its instrumentalities, and each
participating instrumentality, shall be treated as an independent unit
within the fund, except that if it has any sheriff's law enforcement
employees, it shall be treated as 2 independent units, one
for its sheriff's law enforcement employees and the second for its other
employees. Separate municipality reserves shall be maintained in such form
and detail as is necessary to show the net accumulated balances of each
municipality, created or arising under this Article.
(b) In the event of termination and dissolution of any participating
municipality or participating instrumentality and its obligations are not
assumed or transferred by law to another municipality, any net debit or
credit balance remaining in the reserve account of such municipality, or
participating instrumentality, shall be transferred to a Terminated
Municipality Reserve Account which shall be used to fund any future
benefits of its employees arising out of service with the terminated
municipality or participating instrumentality.
Any deficiency arising in the Terminated Municipality Reserve Account
shall be eliminated by a contribution by all remaining municipalities and
participating instrumentalities at a uniform percent of payroll, to be
determined, collected with other contributions required under Section 7-172.
(c) The municipality reserve for each municipality or participating
instrumentality that has any sheriff's law enforcement
employees shall be divided into 2
reserves. A reserve for the sheriff's law enforcement employees shall be
allocated an amount in the same proportion to the total amount in reserve
as the total number of sheriff's law enforcement employees is to the total
participating employees of the municipality or participating
instrumentality
at that date. The remainder shall be
allocated to the reserve for other employees.
(Source: P.A. 87-740.)
(40 ILCS 5/7-205) (from Ch. 108 1/2, par. 7-205)
Sec. 7-205. Reserves for annuities. Appropriate reserves shall be created
for payment of all annuities
granted under this Article at the time such annuities are granted and in
amounts determined to be necessary under actuarial tables adopted by the
Board upon recommendation of the actuary of the fund. All annuities payable
shall be charged to the annuity reserve.
1. Amounts credited to annuity reserves shall be derived by transfer of
all the employee credits from the appropriate employee reserves and by
charges to the municipality reserve of those municipalities in which the
retiring employee has accumulated service. If a retiring employee has
accumulated service in more than one participating municipality or
participating instrumentality, the municipality charges for non-concurrent service shall be calculated as follows:
Aggregate municipality charges for concurrent service shall be prorated based on the employee's earnings. The municipality charges for retirement annuities calculated under subparagraph a. of paragraph 1. of subsection (a) of Section 7-142 shall be prorated based on actual contributions.
2. Supplemental annuities shall be handled as a separate annuity and
amounts to be credited to the annuity reserve therefor shall be derived in
the same manner as a regular annuity.
3. When a retirement annuity is granted to an employee with a spouse
eligible for a surviving spouse annuity, there shall be credited to the
annuity reserve an amount to fund the cost of both the retirement and
surviving spouse annuity as a joint and survivors annuity.
4. Beginning January 1, 1989, when a retirement annuity is awarded, an
amount equal to the present
value of the $3,000 death benefit payable upon the death of the annuitant
shall be transferred to the annuity reserve from the appropriate
municipality reserves in the same manner as the transfer for annuities.
5. All annuity reserves shall be revalued annually as of December 31.
Beginning as of December 31, 1973, adjustment required therein by such
revaluation shall be charged or credited to the earnings and experience
variation reserve.
6. There shall be credited to the annuity reserve all of the
payments
made by annuitants under Section 7-144.2, plus an
additional amount from the
earnings and experience variation reserve to fund the cost of the
incremental annuities granted to annuitants making these payments.
7. As of December 31, 1972, the excess in the annuity reserve shall be
transferred to the municipality reserves. An amount equal to the deficiency
in the reserve of participating municipalities and participating
instrumentalities which have no participating employees shall be allocated
to their reserves. The remainder shall be allocated in amounts
proportionate to the present value, as of January 1, 1972, of annuities of
annuitants of the remaining participating municipalities and participating
instrumentalities.
(Source: P.A. 97-319, eff. 1-1-12; 97-609, eff. 1-1-12; 97-813, eff. 7-13-12.)
(40 ILCS 5/7-205.1) (from Ch. 108 1/2, par. 7-205.1)
Sec. 7-205.1.
Reserves for Disability Benefits.
A temporary and total and permanent disability benefit reserves shall be
created for payment of all temporary and total and permanent disability
benefits.
1. Amounts to fund the cost of total and permanent disability benefits
shall be established at the time such benefits are granted under actuarial
tables adopted by the Board upon recommendation of the Actuary of the Fund.
All total and permanent disability benefits payable shall be charged to
this reserved amount.
2. Temporary disability benefit payments shall be charged to the
disability reserve when made.
3. Amounts credited to the disability reserve shall be derived from
municipality contributions made pursuant to Section 7-172, paragraph (b),
subparagraph 3.
4. The total and permanent disability reserve shall be revalued annually
as of December 31. Any adjustment required therein by such revaluation
shall be charged or credited to the earnings and experience variation
reserve.
(Source: P.A. 77-2121.)
(40 ILCS 5/7-206) (from Ch. 108 1/2, par. 7-206)
Sec. 7-206.
Death Reserve.
All death benefit payments shall be charged
to the Death Reserve, other than $3,000 death benefits paid after December
31, 1988 upon the death of an annuitant. All
contributions for death purposes under Section 7-172(b)4 shall be
credited to the same reserve. Whenever the balance in such reserve at the
close of a year exceeds 100% of the average annual charges to this account
during the 3 preceding calendar years, the basic actuarial assumptions upon
which municipality contribution rates for these purposes are based, shall
be reviewed and revised in such manner as is deemed necessary to reduce
such balance.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/7-207.1) (from Ch. 108 1/2, par. 7-207.1)
Sec. 7-207.1.
Reserve For Variation In Benefit Payments.
A Reserve for Variation in Benefit Payments may be established.
1. Credits to such Reserve shall consist of:
(a) Any employee contributions,
not in excess of $10.00, received by
the Fund subsequent to claim for and payment of a separation refund,
provided, however, that upon request of any employee rightfully entitled
thereto the aforesaid amount shall be paid him from this Reserve.
(b) Any benefit checks or warrants issued and outstanding more than
two years.
(c) Any balances in Employee or Municipality Reserves that are not
properly creditable to those Reserves.
2. Charges to such Reserve shall consist of:
(a) Benefit claims properly payable under this Article, the reserves
for which have been previously transferred to this reserve or for which
no reserves exist.
(b) Benefit overpayments deemed uncollectible by the Board.
(c) Amount required to adjust employee or municipal reserves to
correct balance.
(Source: P.A. 81-1536.)
(40 ILCS 5/7-208) (from Ch. 108 1/2, par. 7-208)
Sec. 7-208.
Earnings and experience variation reserve.
One
earnings and experience variation reserve shall be maintained. All other
accounts for this purpose shall be abolished upon the effective date of this
amendatory Act of 1995. Moneys in abolished reserve accounts shall be
transferred to the earnings and experience variation reserve. No more than
one-half of all interest income and earnings on investments of whatever type,
including realized gains on disposition of investments and unrealized
gains in market value, shall be credited thereto. All investment earnings
expense of whatever type, including realized losses on disposition of
investments and unrealized losses in market value, shall be charged
thereto. All administrative expenses directly relating to investments may be
charged thereto. Excess or deficiencies in the annuity and disability reserves
shall be charged or credited to this reserve. Whenever a balance exists in
such reserve, it shall be included in the basis used for determining the
effective interest rate. The
balance in the reserve shall be distributed as of the end of each year, but a
contingency balance of not more than twice the projected interest requirement
for the next year may be maintained.
If the balance ever exceeds twice the projected requirement, the excess shall
be distributed to municipality reserves.
If the Board determines that the funds available in this reserve, after
required transfers, will not be sufficient to provide administrative expenses
of the fund, the Board may include in the municipality contribution rate
authorized by Section 7-172 a percentage of earnings on the earnings of
all participating employees to provide an amount required for the
administrative expenses.
Upon adoption of generally accepted accounting procedures that allow for
the recognition of unrealized gains or losses in market value, those gains or
losses shall be allocated to employer accounts including the earnings and
experience variation reserve in the same proportion those accounts were to
total assets prior to the implementation of market value accounting.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/7-209) (from Ch. 108 1/2, par. 7-209)
Sec. 7-209.
Earnings and Interest.
(a) Balances at the beginning of each year which remain in employee
reserves at the end of the year shall be credited with interest annually at
the prescribed rate.
(b) Municipality reserves shall be charged or credited, as the case may
be, with interest at the prescribed rate applied to the balance therein at
the beginning of the year.
(c) Municipality accounts receivable shall be charged with interest at a
rate of 1/2% per month before July 1, 1984, and 1% per month thereafter
on the balance therein unpaid one month or more. The
unpaid balance shall include charges established retroactively because of
failure of the municipality to report amounts which should be receivable.
Credit balances shall be disregarded in this calculation.
(d) The annuity total and permanent disability reserves shall be
credited with interest at the prescribed rate at the end of each year. For
purposes of this computation, the prescribed rate shall be applied to the
balances therein at the beginning of the year.
(e) Amounts credited or charged under subsection (a), (b), (c), or
(d) of
this Section shall be charged or credited to the earnings and experience
variation reserve. Any remaining balance, in excess of the contingency
balance established, shall be transferred to the municipality reserves in
proportion to present values of the annuities of the annuitants of each
participating municipality and participating instrumentality plus the
balance in their municipality reserve.
(f) The Board shall fix the rate of interest, to be charged on back,
retroactive, or reinstatement contributions.
(Source: P.A. 89-136, eff. 7-14-95.)
(40 ILCS 5/7-210) (from Ch. 108 1/2, par. 7-210)
Sec. 7-210. Funds.
(a) All money received by the board shall immediately be deposited with the custodian for the account of the Fund, or in the case of
funds received under Section 7-199.1, in a separate account maintained for
that purpose. All payments from the accounts of the Fund
shall be made by the custodian only, and only by a check or draft signed by the president of the
board or the executive director, as the
board may direct. Such checks and drafts shall be drawn only upon proper authorization by the
board as properly recorded in the official minute books of the meetings
of the board.
(b) (Blank).
(c) The assets of the Fund shall be invested as one fund, and no
particular person, municipality, or instrumentality thereof or
participating instrumentality shall have any right in any specific
security or in any item of cash other than an undivided interest in the
whole.
(d) Except as provided in subsection (d-5), whenever any employees of a municipality or participating
instrumentality have been or shall be excluded from participation in
this Fund by virtue of the application of paragraph b of Section 7-109
(2), the board shall issue a check or draft in an amount
equal to the accumulated contributions of such employees. Such check or draft
shall be drawn in favor of the pension or retirement fund
in which such employees have or shall become participants. Such transfer
shall terminate any further rights of such employees under this Fund.
(d-5) Upon creation of a newly established Article 3 police pension fund by referendum under Section 3-145 or by census under Section 3-105, the following amounts shall be transferred from this Fund to the new police pension fund, within 30 days after an application therefor is received from the new pension fund:
(e) If a participating instrumentality terminates participation
because it fails to meet the requirements of Section 7-108, it shall
pay to the Fund the amount equal to any net debit balance in its
municipality reserve account and account receivable. Its successors, and
assigns and transferees of its assets shall be obligated to make this
payment to the extent of the value of assets transferred to them. The
Fund shall pay an amount equal to any net credit balance to the
participating instrumentality, its successors or assigns. Any remaining
net debit or credit balance not collectible or payable shall be
transferred to the terminated municipality reserve account. The Fund
shall pay to each employee of the participating instrumentality an
amount equal to his credits in the employee reserves. The employees
shall have no further rights to any benefits from the Fund, except that
annuities awarded prior to the date of termination shall continue to be
paid.
(Source: P.A. 98-729, eff. 7-26-14; 99-8, eff. 7-9-15.)
(40 ILCS 5/7-211) (from Ch. 108 1/2, par. 7-211)
Sec. 7-211. Authorizations.
(a) Each participating municipality and instrumentality thereof and
each participating instrumentality shall:
(b) Each participating employee shall, by virtue of the payment of
contributions to this fund, receive a vested interest in the annuities
and benefits provided in this Article and in consideration of such vested
interest shall be deemed to have agreed and authorized the deduction from
earnings of all contributions payable to this fund in accordance with this
Article.
(c) Payment of earnings less the amounts of contributions provided in
this Article and in the Social Security Enabling Act shall be a full
and complete discharge of all claims for payment for services rendered
by any employee during the period covered by any such payment.
(d) Any covered annuitant may authorize the withholding of all or a portion
of his or her annuity, for the payment of premiums on group accident and health
insurance provided pursuant to Section 7-199.1. The annuitant may revoke
this authorization at any time.
(Source: P.A. 96-1084, eff. 7-16-10.)
(40 ILCS 5/7-212) (from Ch. 108 1/2, par. 7-212)
Sec. 7-212.
Executive director.
The executive director shall be in charge of the general administration
of the fund. He shall have such special powers and duties as may be
properly delegated or assigned by the board from time to time. Such general
administrative duties shall include: the computation of the amounts of
annuities, benefits, prior service credits and contributions required for
reinstatement of credits for board consideration; the processing of
approved benefit claims and expenses of administration for payment; the
placing of any and all matters before the board which require action or are
in the interest of the board or the fund; the preparation and maintenance
of necessary and proper records for administrative and actuarial purposes;
the conduct of any necessary or desirable communications in the course of
operations of the fund; and the carrying out of any actions of the board
which are so delegated.
(Source: P.A. 77-2121.)
(40 ILCS 5/7-213) (from Ch. 108 1/2, par. 7-213)
Sec. 7-213.
Actuary.
The actuary shall be the technical advisor of the board and in addition
to general advice shall specifically be responsible for and shall:
1. Make a general investigation, at least once every 3 years, of the
experience of the participating municipalities and participating
instrumentalities as to mortality, disability, retirement, separation,
marital status of employees, marriage of surviving spouses, interest and
employee earnings rates and to make recommendations as a result of any such
investigation as to:
a. The actuarial tables to be used for computing annuities and benefits
and for determining the premiums for disability and death benefit purposes;
b. The tables to be used in any regular actuarial valuations; and
c. The prescribed rate of interest.
2. Make the computations of municipality obligations, contribution rates
including annual valuations of the liabilities and reserves for present and
prospective annuities and benefits, and certify to the correctness thereof;
3. Recommend the effective rate of interest to be applicable to each
year;
4. Advise the board on any matters of an actuarial nature affecting the
fund.
(Source: P.A. 77-2121.)
(40 ILCS 5/7-214) (from Ch. 108 1/2, par. 7-214)
Sec. 7-214. Custodian. The Board shall appoint one or more custodians to receive and hold the assets of the Fund on such terms as the Board may agree.
(Source: P.A. 99-8, eff. 7-9-15.)
(40 ILCS 5/7-215) (from Ch. 108 1/2, par. 7-215)
Sec. 7-215.
Retirement Systems Reciprocal Act.
The "Retirement Systems Reciprocal Act", being Article 20 of this Code
as now enacted or hereafter amended is hereby adopted and made a part of
this Article. The additional cost of annuities resulting from awards made
under Section 20-122 of this Code, in excess of employee contributions made
under that Section, shall be financed by a uniform contribution rate paid
by all municipalities and participating instrumentalities with other
contributions under Section 7-172. If a person is qualified for an annuity
under such Act, the Fund may make payments of less than $10 per month,
notwithstanding the limitations set forth in this Article.
(Source: P.A. 78-896.)
(40 ILCS 5/7-217) (from Ch. 108 1/2, par. 7-217)
Sec. 7-217.
Payment of benefits and assignments.
(a) Except as otherwise provided in this Section, all moneys in the
Fund created by this Article, and all securities
and other property of the Fund, and all annuities and other benefits
payable under this Article, and all accumulated contributions and other
credits of employees in this Fund, and the right of any person to receive
an annuity or other benefit under this Article, or a refund or return of
contributions, shall not be subject to judgment, execution, garnishment,
attachment, or other seizure by process, in bankruptcy or otherwise, nor to
sale, pledge, mortgage or other alienation, and shall not be assignable.
Notwithstanding Section 1-103.1, the changes in this Section made by this
amendatory Act of 1991 shall not be limited to persons in service on or
after its effective date. All annuities and other benefits payable under
this Fund and all accumulated credits of employees in the Fund shall be
exempt from state and
municipal taxes.
(b) The board, in its discretion, may:
(c) The board may retain out of any annuity or benefit payable to
any person such amount or amounts as the board may determine are owing
to the fund because required employee contributions were not made, in
whole or in part, or employee obligations to return refunds were not
made, or because money was paid to any annuitant or employee through
misrepresentation, fraud or error.
(d) The board and the fund shall be held free from any liability for
any money retained or paid in accordance with this section and the
employee shall be assumed to have assented and agreed to any such
disposition of money due.
(e) An annuitant entitled to receive an annuity may, for personal
reasons and without disclosure thereof, request the board in writing to
suspend for any period payment of all or any part of such annuity
otherwise payable hereunder. The board, on receipt of such request,
shall authorize such suspension, in which event the annuitant shall be
deemed to have forfeited all rights to the amount of annuity so
suspended, but shall retain the right to have full annuity otherwise
payable reinstated as to future monthly payments upon written notice to
the board of his desire to revoke his prior request for a suspension
under this paragraph.
(f) The board may reimburse any municipality or participating
instrumentality for employee contributions due such municipality or
participating instrumentality, from funds withheld by the board pursuant
to this Section.
(g) An annuitant may authorize the withholding of a portion of his
annuity for payment of dues to any labor organization designated by the
annuitant; however, no portion of annuities may be withheld pursuant to
this subsection for payment to any one labor organization unless a minimum
of 100 annuitants authorize such withholding,
except that the Board may allow such withholding
for less than 100 annuitants during a probationary period of between 3 and
6 months, as determined by the Board. The Board shall prescribe a form for
the authorization of such withholding, and shall provide such forms to
employees, annuitants and labor organizations upon request. Amounts
withheld by the Board under this subsection shall be promptly paid over to
the designated organizations.
(Source: P.A. 87-740.)
(40 ILCS 5/7-218) (from Ch. 108 1/2, par. 7-218)
Sec. 7-218.
Compulsory retirement.
No provision of this Article shall operate to cause compulsory
retirement of any employee, nor to give any employee any specific right to
remain in service. Separations and retirements from the service of a
municipality or participating instrumentality shall be made in accordance
with the currently existing practices of the respective municipalities and
participating instrumentalities.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-219) (from Ch. 108 1/2, par. 7-219)
Sec. 7-219. Felony conviction.
None of the benefits provided for in this Article shall be paid to any
person who is convicted of any felony relating to or arising out of or in
connection with his service as an employee.
None of the benefits provided for in this Article shall be paid to any person who otherwise would receive a survivor benefit who is convicted of any felony relating to or arising out of or in connection with the service of the employee from whom the benefit results.
This Section shall not operate to impair any contract or vested right
heretofore acquired under any law or laws continued in this Article, nor to
preclude the right to a refund, and for the changes under this amendatory Act of the 100th General Assembly, shall not impair any contract or vested right acquired by a survivor prior to the effective date of this amendatory Act of the 100th General Assembly.
All future entrants entering service subsequent to July 9, 1955 shall be
deemed to have consented to the provisions of this Section as a condition
of coverage, and all participants entering service subsequent to the effective date of this amendatory Act of the 100th General Assembly shall be deemed to have consented to the provisions of this amendatory Act as a condition of participation.
(Source: P.A. 100-334, eff. 8-25-17.)
(40 ILCS 5/7-220) (from Ch. 108 1/2, par. 7-220)
Sec. 7-220. Administrative review. The provisions of the Administrative Review Law, and all amendments and
modifications thereof and the rules adopted
pursuant thereto shall apply to and govern all proceedings for the judicial
review of final administrative decisions of the retirement board provided
for under this Article. The term "administrative decision" is as defined in
Section 3-101 of the Code of Civil Procedure. The venue for actions brought under the Administrative Review Law shall be any county in which the Board maintains an office or the county in which the member's employing participating municipality or participating instrumentality has its main office.
(Source: P.A. 96-1140, eff. 7-21-10; 97-933, eff. 8-10-12.)
(40 ILCS 5/7-221) (from Ch. 108 1/2, par. 7-221)
Sec. 7-221.
General provisions and savings clause.
The provisions of Article 1 and Article 23 of this Code apply to this
Article as though such provisions were fully set forth in this Article as a
part thereof.
(Source: Laws 1963, p. 161.)
(40 ILCS 5/7-222) (from Ch. 108 1/2, par. 7-222)
Sec. 7-222.
Reduction of disability and survivor's benefits on
account of corresponding benefits payable under the Workers'
Compensation Act and the Workers' Occupational Diseases Act. Whenever
any person is entitled to a disability or survivors benefit under this
Article and to benefits under the Workers' Compensation Act or the
Workers' Occupational Diseases Act in relation to the same injury or
disease, the monthly benefits payable under this Article shall be
reduced by the amount of any such benefits payable under either of those
Acts, except payments for medical, surgical and hospital services,
non-medical remedial care and treatment rendered in accordance with a
religious method of healing recognized by the laws of this State, and
for artificial members or appliances, and fixed statutory payments for
the loss of or the permanent and complete loss of the use of any bodily
member, provided that the monthly benefit payable under this Article
shall not be reduced to less than $10 per month. If the benefits
deductible under this paragraph are stated in a weekly amount, the
monthly amount for the purposes of this Section shall be 4 1/3 times the
weekly amount.
(Source: P.A. 81-992.)
(40 ILCS 5/7-223) (from Ch. 108 1/2, par. 7-223)
Sec. 7-223.
The amendments to Sections 7-137, 7-146, 7-147, 7-150 and
7-151 of this Article (relating to attainment of age 70) made by this
amendatory Act of 1989 shall be retroactive to January 1, 1987.
(Source: P.A. 86-272.)
(40 ILCS 5/7-224)
Sec. 7-224.
Section 415 limitations.
Notwithstanding any other
provisions of this Article, the combined benefits and contributions provided to
any participating employee by all plans of any participating municipality and
its instrumentalities and any participating instrumentality shall not exceed
the limitations specified in Section 415(b), (c), and (e) of the Internal
Revenue Code of 1986. If a participating employee's benefits or contributions
under this Article, combined with those under any other plan of the
participating municipality and its instrumentalities or participating
instrumentality, would otherwise violate those limitations, the benefits and
contributions under the other plan shall be reduced, rather than the benefits
and contributions provided under this Article. To the extent that the other
plan fails to limit such benefits and contributions, that plan shall be
disqualified.
(Source: P.A. 91-887, eff. 7-6-00.)
(40 ILCS 5/7-225)
Sec. 7-225. Increases in earnings; pension impact statement. Before increasing the earnings of an officer, executive, or manager by 12% or more:
The provisions of this Section do not apply to any of the following: increases attributable to standard employment promotions resulting in increased responsibility and workloads; earnings increases paid to individuals under contracts or collective bargaining agreements entered into, amended, or renewed before January 1, 2012; earnings increases paid to members who are 10 years or more from retirement eligibility; or earnings increases resulting from an increase in the number of hours required to be worked.
(Source: P.A. 97-609, eff. 1-1-12.)
Structure Illinois Compiled Statutes
40 ILCS 5/ - Illinois Pension Code.
Article 1 - General Provisions: Short Title, Effect Of Code And Other Provisions
Article 1A - Regulation Of Public Pension Funds
Article 2 - General Assembly Retirement System
Article 3 - Police Pension Fund - Municipalities 500,000 And Under
Article 4 - Firefighters' Pension Fund - Municipalities 500,000 And Under
Article 5 - Policemen's Annuity And Benefit Fund--Cities Over 500,000
Article 6 - Firemen's Annuity And Benefit Fund--Cities Over 500,000
Article 7 - Illinois Municipal Retirement Fund
Article 10 - Forest Preserve District Employees' Annuity And Benefit Fund
Article 13 - Metropolitan Water Reclamation District Retirement Fund
Article 14 - State Employees' Retirement System Of Illinois
Article 15 - State Universities Retirement System
Article 16 - Teachers' Retirement System Of The State Of Illinois
Article 17 - Public School Teachers' Pension And Retirement Fund--Cities Of Over 500,000 Inhabitants
Article 18 - Judges Retirement System Of Illinois
Article 20 - Retirement Systems Reciprocal Act
Article 21 - Social Security Enabling Act
Article 22 - Miscellaneous Collateral Provisions
Article 22A - Investment Board
Article 22B - The Police Officers' Pension Investment Fund
Article 22C - The Firefighters' Pension Investment Fund