(40 ILCS 5/15‑101)(from Ch. 108 1/2, par. 15‑101) Sec. 15‑101. Creation of system. A retirement system is created to provide retirement annuities and other benefits for employees, as defined in this Article, and their dependents. The system shall be known and may be cited as State Universities Retirement System. All the business of the system shall be transacted in that name. (Source: P.A. 83‑1440.)
(40 ILCS 5/15‑102)(from Ch. 108 1/2, par. 15‑102) Sec. 15‑102. Terms defined. The terms used in this Article shall have the meanings ascribed to them in Sections 15‑103 through 15‑132.1, except when the context otherwise requires. (Source: P.A. 91‑357, eff. 7‑29‑99.)
(40 ILCS 5/15‑103)(from Ch. 108 1/2, par. 15‑103) Sec. 15‑103. System. "System": The State Universities Retirement System. (Source: P.A. 83‑1440.)
(40 ILCS 5/15‑103.1) Sec. 15‑103.1. Traditional Benefit Package. "Traditional benefit package": The defined benefit retirement program maintained under the System which includes retirement annuities payable directly from the System as provided in Sections 15‑135 through 15‑140 (but disregarding Section 15‑136.4), disability retirement annuities payable under Section 15‑153.2, death benefits payable directly from the System as provided in Sections 15‑141 through 15‑144, survivors insurance benefits payable directly from the System as provided in Sections 15‑145 through 15‑149, and contribution refunds as provided in Section 15‑154. The traditional benefit package also includes disability benefits as provided in Sections 15‑150 through 15‑153.3. (Source: P.A. 90‑766, eff. 8‑14‑98.)
(40 ILCS 5/15‑103.2) Sec. 15‑103.2. Portable Benefit Package. "Portable benefit package": The defined benefit retirement program maintained under the System which includes retirement annuities payable directly from the System as provided in Sections 15‑135 through 15‑139 (specifically including Section 15‑136.4), disability retirement annuities payable under Section 15‑153.2, death benefits payable directly from the System as provided in Sections 15‑141 through 15‑144, and contribution refunds as provided in Section 15‑154. The portable benefit package also includes disability benefits as provided in Sections 15‑150 through 15‑153.3. The portable benefit package does not include the survivors insurance benefits payable directly from the System as provided in Sections 15‑145 through 15‑149. (Source: P.A. 90‑766, eff. 8‑14‑98.)
(40 ILCS 5/15‑103.3) Sec. 15‑103.3. Self‑Managed Plan. "Self‑managed plan": The defined contribution retirement program maintained under the System as described in Section 15‑158.2. The self‑managed plan also includes disability benefits as provided in Sections 15‑150 through 15‑153.3 (but disregarding disability retirement annuities under Section 15‑153.2). The self‑managed plan does not include retirement annuities, death benefits, or survivors insurance benefits payable directly from the System as provided in Sections 15‑135 through 15‑149 and Section 15‑153.2, or refunds determined under Section 15‑154. (Source: P.A. 90‑766, eff. 8‑14‑98.)
(40 ILCS 5/15‑104)(from Ch. 108 1/2, par. 15‑104) Sec. 15‑104. The 1941 Act. "The 1941 Act": "An Act to provide for the creation, maintenance and administration of a Retirement System for the benefit of the staff members and employees of the state universities and certain affiliated organizations, certain other state educational and scientific agencies, and the survivors, dependents and other beneficiaries of such employees", approved July 21, 1941 as amended, and repealed in 1963. (Source: P.A. 83‑1440.)
(40 ILCS 5/15‑105)(from Ch. 108 1/2, par. 15‑105) Sec. 15‑105. Board. "Board": The Board of Trustees of the System. (Source: Laws 1963, p. 161.)
(40 ILCS 5/15‑106)(from Ch. 108 1/2, par. 15‑106) Sec. 15‑106. Employer. "Employer": The University of Illinois, Southern Illinois University, Chicago State University, Eastern Illinois University, Governors State University, Illinois State University, Northeastern Illinois University, Northern Illinois University, Western Illinois University, the State Board of Higher Education, the Illinois Mathematics and Science Academy, the University Civil Service Merit Board, the Board of Trustees of the State Universities Retirement System, the Illinois Community College Board, community college boards, any association of community college boards organized under Section 3‑55 of the Public Community College Act, the Board of Examiners established under the Illinois Public Accounting Act, and, only during the period for which employer contributions required under Section 15‑155 are paid, the following organizations: the alumni associations, the foundations and the athletic associations which are affiliated with the universities and colleges included in this Section as employers. A department as defined in Section 14‑103.04 is an employer for any person appointed by the Governor under the Civil Administrative Code of Illinois who is a participating employee as defined in Section 15‑109. The Department of Central Management Services is an employer with respect to persons employed by the State Board of Higher Education in positions with the Illinois Century Network as of June 30, 2004 who remain continuously employed after that date by the Department of Central Management Services in positions with the Illinois Century Network, the Bureau of Communication and Computer Services, or, if applicable, any successor bureau. The cities of Champaign and Urbana shall be considered employers, but only during the period for which contributions are required to be made under subsection (b‑1) of Section 15‑155 and only with respect to individuals described in subsection (h) of Section 15‑107. (Source: P.A. 95‑369, eff. 8‑23‑07; 95‑728, eff. date ‑ See Sec. 999.)
(40 ILCS 5/15‑107)(from Ch. 108 1/2, par. 15‑107) Sec. 15‑107. Employee. (a) "Employee" means any member of the educational, administrative, secretarial, clerical, mechanical, labor or other staff of an employer whose employment is permanent and continuous or who is employed in a position in which services are expected to be rendered on a continuous basis for at least 4 months or one academic term, whichever is less, who (A) receives payment for personal services on a warrant issued pursuant to a payroll voucher certified by an employer and drawn by the State Comptroller upon the State Treasurer or by an employer upon trust, federal or other funds, or (B) is on a leave of absence without pay. Employment which is irregular, intermittent or temporary shall not be considered continuous for purposes of this paragraph. However, a person is not an "employee" if he or she: (1) is a student enrolled in and regularly attending
classes in a college or university which is an employer, and is employed on a temporary basis at less than full time;
(2) is currently receiving a retirement annuity or a
disability retirement annuity under Section 15‑153.2 from this System;
(3) is on a military leave of absence; (4) is eligible to participate in the Federal Civil
Service Retirement System and is currently making contributions to that system based upon earnings paid by an employer;
(5) is on leave of absence without pay for more than
60 days immediately following termination of disability benefits under this Article;
(6) is hired after June 30, 1979 as a public service
employment program participant under the Federal Comprehensive Employment and Training Act and receives earnings in whole or in part from funds provided under that Act; or
(7) is employed on or after July 1, 1991 to perform
services that are excluded by subdivision (a)(7)(f) or (a)(19) of Section 210 of the federal Social Security Act from the definition of employment given in that Section (42 U.S.C. 410).
(b) Any employer may, by filing a written notice with the board, exclude from the definition of "employee" all persons employed pursuant to a federally funded contract entered into after July 1, 1982 with a federal military department in a program providing training in military courses to federal military personnel on a military site owned by the United States Government, if this exclusion is not prohibited by the federally funded contract or federal laws or rules governing the administration of the contract. (c) Any person appointed by the Governor under the Civil Administrative Code of the State is an employee, if he or she is a participant in this system on the effective date of the appointment. (d) A participant on lay‑off status under civil service rules is considered an employee for not more than 120 days from the date of the lay‑off. (e) A participant is considered an employee during (1) the first 60 days of disability leave, (2) the period, not to exceed one year, in which his or her eligibility for disability benefits is being considered by the board or reviewed by the courts, and (3) the period he or she receives disability benefits under the provisions of Section 15‑152, workers' compensation or occupational disease benefits, or disability income under an insurance contract financed wholly or partially by the employer. (f) Absences without pay, other than formal leaves of absence, of less than 30 calendar days, are not considered as an interruption of a person's status as an employee. If such absences during any period of 12 months exceed 30 work days, the employee status of the person is considered as interrupted as of the 31st work day. (g) A staff member whose employment contract requires services during an academic term is to be considered an employee during the summer and other vacation periods, unless he or she declines an employment contract for the succeeding academic term or his or her employment status is otherwise terminated, and he or she receives no earnings during these periods. (h) An individual who was a participating employee employed in the fire department of the University of Illinois's Champaign‑Urbana campus immediately prior to the elimination of that fire department and who immediately after the elimination of that fire department became employed by the fire department of the City of Urbana or the City of Champaign shall continue to be considered as an employee for purposes of this Article for so long as the individual remains employed as a firefighter by the City of Urbana or the City of Champaign. The individual shall cease to be considered an employee under this subsection (h) upon the first termination of the individual's employment as a firefighter by the City of Urbana or the City of Champaign. (i) An individual who is employed on a full‑time basis as an officer or employee of a statewide teacher organization that serves System participants or an officer of a national teacher organization that serves System participants may participate in the System and shall be deemed an employee, provided that (1) the individual has previously earned creditable service under this Article, (2) the individual files with the System an irrevocable election to become a participant, and (3) the individual does not receive credit for that employment under any other Article of this Code. An employee under this subsection (i) is responsible for paying to the System both (A) employee contributions based on the actual compensation received for service with the teacher organization and (B) employer contributions equal to the normal costs (as defined in Section 15‑155) resulting from that service; all or any part of these contributions may be paid on the employee's behalf or picked up for tax purposes (if authorized under federal law) by the teacher organization. A person who is an employee as defined in this subsection (i) may establish service credit for similar employment prior to becoming an employee under this subsection by paying to the System for that employment the contributions specified in this subsection, plus interest at the effective rate from the date of service to the date of payment. However, credit shall not be granted under this subsection for any such prior employment for which the applicant received credit under any other provision of this Code, or during which the applicant was on a leave of absence under Section 15‑113.2. (j) A person employed by the State Board of Higher Education in a position with the Illinois Century Network as of June 30, 2004 shall be considered to be an employee for so long as he or she remains continuously employed after that date by the Department of Central Management Services in a position with the Illinois Century Network, the Bureau of Communication and Computer Services, or, if applicable, any successor bureau and meets the requirements of subsection (a). (Source: P.A. 95‑369, eff. 8‑23‑07.)
(40 ILCS 5/15‑108)(from Ch. 108 1/2, par. 15‑108) Sec. 15‑108. Participant. "Participant": A person participating in this system as specified in Section 15‑134. (Source: P.A. 83‑1440.)
(40 ILCS 5/15‑109)(from Ch. 108 1/2, par. 15‑109) Sec. 15‑109. Participating employee. "Participating employee": A participant who at the time is an employee. (Source: P.A. 83‑1440.)
(40 ILCS 5/15‑110)(from Ch. 108 1/2, par. 15‑110) Sec. 15‑110. Basic compensation. "Basic compensation": The gross basic rate of salary or wages payable by an employer, including the value of maintenance, board, living quarters, personal laundry or other allowances furnished in lieu of salary which are considered gross income under the Federal Internal Revenue Code, the employee contributions required under Section 15‑157, and the amount paid by any employer to a custodial account for investment in regulated investment company stocks for the benefit of the employee pursuant to "An Act in relation to payments to custodial accounts for the benefit of employees of public institutions of higher education", approved September 9, 1983, and the amount of the premium payable by any employer to an insurance company or companies on an annuity contract, pursuant to the employee's election to accept a reduction in earnings or forego an increase in earnings under Section 30c of "An Act in relation to State Finance," approved June 10, 1919, as amended, or a tax‑sheltered annuity plan approved by any employer. Basic compensation does not include (1) salary or wages for overtime or other extra service; (2) prospective salary or wages under a summer teaching contract not yet entered upon; and (3) overseas differential allowances, quarters allowances, post allowances, educational allowances and transportation allowances paid by an employer under a contract with the federal government or its agencies for services rendered in other countries. If an employee elects to receive in lieu of cash salary or wages, fringe benefits which are not taxable under the Federal Internal Revenue Code, the amount of the cash salary or wages which is waived shall be included in determining basic compensation. (Source: P.A. 84‑1308.)
(40 ILCS 5/15‑111)(from Ch. 108 1/2, par. 15‑111) Sec. 15‑111. Earnings. "Earnings": An amount paid for personal services equal to the sum of the basic compensation plus extra compensation for summer teaching, overtime or other extra service. For periods for which an employee receives service credit under subsection (c) of Section 15‑113.1 or Section 15‑113.2, earnings are equal to the basic compensation on which contributions are paid by the employee during such periods. Compensation for employment which is irregular, intermittent and temporary shall not be considered earnings, unless the participant is also receiving earnings from the employer as an employee under Section 15‑107. With respect to transition pay paid by the University of Illinois to a person who was a participating employee employed in the fire department of the University of Illinois's Champaign‑Urbana campus immediately prior to the elimination of that fire department: (1) "Earnings" includes transition pay paid to the
employee on or after the effective date of this amendatory Act of the 91st General Assembly.
(2) "Earnings" includes transition pay paid to the
employee before the effective date of this amendatory Act of the 91st General Assembly only if (i) employee contributions under Section 15‑157 have been withheld from that transition pay or (ii) the employee pays to the System before January 1, 2001 an amount representing employee contributions under Section 15‑157 on that transition pay. Employee contributions under item (ii) may be paid in a lump sum, by withholding from additional transition pay accruing before January 1, 2001, or in any other manner approved by the System. Upon payment of the employee contributions on transition pay, the corresponding employer contributions become an obligation of the State.
(Source: P.A. 91‑887, eff. 7‑6‑00.)
(40 ILCS 5/15‑112)(from Ch. 108 1/2, par. 15‑112) Sec. 15‑112. Final rate of earnings. "Final rate of earnings": For an employee who is paid on an hourly basis or who receives an annual salary in installments during 12 months of each academic year, the average annual earnings during the 48 consecutive calendar month period ending with the last day of final termination of employment or the 4 consecutive academic years of service in which the employee's earnings were the highest, whichever is greater. For any other employee, the average annual earnings during the 4 consecutive academic years of service in which his or her earnings were the highest. For an employee with less than 48 months or 4 consecutive academic years of service, the average earnings during his or her entire period of service. The earnings of an employee with more than 36 months of service prior to the date of becoming a participant are, for such period, considered equal to the average earnings during the last 36 months of such service. For an employee on leave of absence with pay, or on leave of absence without pay who makes contributions during such leave, earnings are assumed to be equal to the basic compensation on the date the leave began. For an employee on disability leave, earnings are assumed to be equal to the basic compensation on the date disability occurs or the average earnings during the 24 months immediately preceding the month in which disability occurs, whichever is greater. For a participant who retires on or after the effective date of this amendatory Act of 1997 with at least 20 years of service as a firefighter or police officer under this Article, the final rate of earnings shall be the annual rate of earnings received by the participant on his or her last day as a firefighter or police officer under this Article, if that is greater than the final rate of earnings as calculated under the other provisions of this Section. If a participant is an employee for at least 6 months during the academic year in which his or her employment is terminated, the annual final rate of earnings shall be 25% of the sum of (1) the annual basic compensation for that year, and (2) the amount earned during the 36 months immediately preceding that year, if this is greater than the final rate of earnings as calculated under the other provisions of this Section. In the determination of the final rate of earnings for an employee, that part of an employee's earnings for any academic year beginning after June 30, 1997, which exceeds the employee's earnings with that employer for the preceding year by more than 20 percent shall be excluded; in the event that an employee has more than one employer this limitation shall be calculated separately for the earnings with each employer. In making such calculation, only the basic compensation of employees shall be considered, without regard to vacation or overtime or to contracts for summer employment. The following are not considered as earnings in determining final rate of earnings: (1) severance or separation pay, (2) retirement pay, (3) payment for unused sick leave, and (4) payments from an employer for the period used in determining final rate of earnings for any purpose other than (i) services rendered, (ii) leave of absence or vacation granted during that period, and (iii) vacation of up to 56 work days allowed upon termination of employment; except that, if the benefit has been collectively bargained between the employer and the recognized collective bargaining agent pursuant to the Illinois Educational Labor Relations Act, payment received during a period of up to 2 academic years for unused sick leave may be considered as earnings in accordance with the applicable collective bargaining agreement, subject to the 20% increase limitation of this Section. Any unused sick leave considered as earnings under this Section shall not be taken into account in calculating service credit under Section 15‑113.4. Intermittent periods of service shall be considered as consecutive in determining final rate of earnings. (Source: P.A. 92‑599, eff. 6‑28‑02; 93‑347, eff. 7‑24‑03.)
(40 ILCS 5/15‑113)(from Ch. 108 1/2, par. 15‑113) Sec. 15‑113. Service. "Service": The periods defined in Sections 15‑113.1 through 15‑113.9. (Source: P.A. 84‑1472.)
(40 ILCS 5/15‑113.1)(from Ch. 108 1/2, par. 15‑113.1) Sec. 15‑113.1. Service for employment with an employer defined under Section 15‑106. "Service for employment with an employer defined under Section 15‑106": Includes the following periods: (a) periods prior to September 1, 1941 during which a person was permanently and continuously employed by an employer. (b) periods after August 31, 1941 during which a person was an employee except (1) those during which the employee elected not to participate or was ineligible to participate, (2) those during which the employee was on leave of absence at less than 50% pay, except military and disability leave, but failed, in accordance with rules prescribed by the board, to elect to make and to pay the contributions required under Section 15‑157, and (3) those during which the employee's eligibility for disability benefit was being considered by the board or reviewed by the courts, if the disability benefit was denied. (c) periods after August 31, 1941 during which a person was employed at least one‑half time for an employer preceding the date of becoming a participant or during which a person was employed at least one‑half time for an employer not subject to "The 1941 Act" which employer has since been included as an employer under "The 1941 Act", or this Article, provided the person makes the contributions required under Section 15‑157 based on the rate of earnings during this period equal to the basic compensation on the date of becoming a participating employee together with compound interest from the date participation began to the date payment is received by the board at the rate of 6% per annum through August 31, 1982, and at the effective rates after that date, and provided that the contributions required under Section 15‑155 are also made. However, no service credit shall be allowed for any period of employment during which an individual is excluded from the definition of an employee as provided under subsection (b) of Section 15‑107. (Source: P.A. 84‑1028.)
(40 ILCS 5/15‑113.2)(from Ch. 108 1/2, par. 15‑113.2) Sec. 15‑113.2. Service for leaves of absence. "Service for leaves of absence" includes those periods of leaves of absence at less than 50% pay, except military leave and periods of disability leave in excess of 60 days, for which the employee pays the contributions required under Section 15‑157 in accordance with rules prescribed by the board based upon the employee's basic compensation on the date the leave begins, or in the case of leave for service with a teacher organization, based upon the actual compensation received by the employee for such service after January 26, 1988, if the employee so elects within 30 days of that date or the date the leave for service with a teacher organization begins, whichever is later; provided that the employee (1) returns to employment covered by this system at the expiration of the leave, or within 30 days after the termination of a disability which occurs during the leave and continues this employment at a percentage of time equal to or greater than the percentage of time immediately preceding the leave of absence for at least 8 consecutive months or a period equal to the period of the leave, whichever is less, or (2) is precluded from meeting the foregoing conditions because of disability or death. If service credit is denied because the employee fails to meet these conditions, the contributions covering the leave of absence shall be refunded without interest. The return to employment condition does not apply if the leave of absence is for service with a teacher organization. Service credit provided under this Section shall not exceed 3 years in any period of 10 years, unless the employee is on special leave granted by the employer for service with a teacher organization. Commencing with the fourth year in any period of 10 years, a participant on such special leave is also required to pay employer contributions equal to the normal cost as defined in Section 15‑155, based upon the employee's basic compensation on the date the leave begins, or based upon the actual compensation received by the employee for service with a teacher organization if the employee has so elected. (Source: P.A. 90‑65, eff. 7‑7‑97; 90‑511, eff. 8‑22‑97.)
(40 ILCS 5/15‑113.3)(from Ch. 108 1/2, par. 15‑113.3) Sec. 15‑113.3. Service for periods of military service. "Service for periods of military service": Those periods, not exceeding 5 years, during which a person served in the armed forces of the United States, of which all but 2 years must have immediately followed a period of employment with an employer under this System or the State Employees' Retirement System of Illinois; provided that the person received a discharge other than dishonorable and again became an employee under this System within one year after discharge. However, for the up to 2 years of military service not immediately following employment, the applicant must make contributions to the System equal to (1) 8% of the employee's basic compensation on the last date as a participating employee prior to such military service, or on the first date as a participating employee after such military service, whichever is greater, plus (2) an amount determined by the board to be equal to the employer's normal cost of the benefits accrued for such military service, plus (3) interest on items (1) and (2) at the effective rate from the later of the date of first membership in the System or the date of conclusion of military service to the date of payment. The change in the required contribution for purchased military credit made by this amendatory Act of 1993 does not entitle any person to a refund of contributions already paid. The contributions paid under this Section are not normal contributions as defined in Section 15‑114 or additional contributions as defined in Section 15‑115. The changes to this Section made by this amendatory Act of 1991 shall apply not only to persons who on or after its effective date are in service under the System, but also to persons whose employment terminated prior to that date, whether or not the person is an annuitant on that date. In the case of an annuitant who applies for credit allowable under this Section for a period of military service that did not immediately follow employment, and who has made the required contributions for such credit, the annuity shall be recalculated to include the additional service credit, with the increase taking effect on the date the System received written notification of the annuitant's intent to purchase the credit, if payment of all the required contributions is made within 60 days of such notice, or else on the first annuity payment date following the date of payment of the required contributions. In calculating the automatic annual increase for an annuity that has been recalculated under this Section, the increase attributable to the additional service allowable under this amendatory Act of 1991 shall be included in the calculation of automatic annual increases accruing after the effective date of the recalculation. (Source: P.A. 93‑347, eff. 7‑24‑03.)
(40 ILCS 5/15‑113.4)(from Ch. 108 1/2, par. 15‑113.4) Sec. 15‑113.4. Service for unused sick leave. "Service for unused sick leave": A participant who is an employee under this System or one of the other systems subject to Article 20 of this Code within 60 days immediately preceding the date on which his or her retirement annuity begins, is entitled to credit for service for that portion of unused sick leave earned in the course of employment with an employer and credited on the date of termination of employment by an employer for which payment is not received, in accordance with the following schedule: 30 through 90 full calendar days and 20 through 59 full work days of unused sick leave, 1/4 of a year of service; 91 through 180 full calendar days and 60 through 119 full work days, 1/2 of a year of service; 181 through 270 full calendar days and 120 through 179 full work days, 3/4 of a year of service; 271 through 360 full calendar days and 180 through 240 full work days, one year of service. Only uncompensated, unused sick leave earned in accordance with an employer's sick leave accrual policy generally applicable to employees or a class of employees shall be taken into account in calculating service credit under this Section. Any uncompensated, unused sick leave granted by an employer to facilitate the hiring, retirement, termination, or other special circumstances of an employee shall not be taken into account in calculating service credit under this Section. If a participant transfers from one employer to another, the unused sick leave credited by the previous employer shall be considered in determining service to be credited under this Section, even if the participant terminated service prior to the effective date of P.A. 86‑272 (August 23, 1989); if necessary, the retirement annuity shall be recalculated to reflect such sick leave credit. Each employer shall certify to the board the number of days of unused sick leave accrued to the participant's credit on the date that the participant's status as an employee terminated. This period of unused sick leave shall not be considered in determining the date the retirement annuity begins. (Source: P.A. 90‑65, eff. 7‑7‑97; 90‑511, eff. 8‑22‑97.)
(40 ILCS 5/15‑113.5)(from Ch. 108 1/2, par. 15‑113.5) Sec. 15‑113.5. Service for employment with other public agencies in this State. "Service for employment with other public agencies in this State" includes the following periods: (a) periods during which a person rendered services for the State of Illinois, prior to January 1, 1944, under employment not covered by this Article, if (1) such periods would have been considered creditable service under the State Employees' Retirement System of Illinois had that system been in effect at that time, and (2) service credit for such periods has not been
(40 ILCS 5/15‑101)(from Ch. 108 1/2, par. 15‑101) Sec. 15‑101. Creation of system. A retirement system is created to provide retirement annuities and other benefits for employees, as defined in this Article, and their dependents. The system shall be known and may be cited as State Universities Retirement System. All the business of the system shall be transacted in that name. (Source: P.A. 83‑1440.)
(40 ILCS 5/15‑102)(from Ch. 108 1/2, par. 15‑102) Sec. 15‑102. Terms defined. The terms used in this Article shall have the meanings ascribed to them in Sections 15‑103 through 15‑132.1, except when the context otherwise requires. (Source: P.A. 91‑357, eff. 7‑29‑99.)
(40 ILCS 5/15‑103)(from Ch. 108 1/2, par. 15‑103) Sec. 15‑103. System. "System": The State Universities Retirement System. (Source: P.A. 83‑1440.)
(40 ILCS 5/15‑103.1) Sec. 15‑103.1. Traditional Benefit Package. "Traditional benefit package": The defined benefit retirement program maintained under the System which includes retirement annuities payable directly from the System as provided in Sections 15‑135 through 15‑140 (but disregarding Section 15‑136.4), disability retirement annuities payable under Section 15‑153.2, death benefits payable directly from the System as provided in Sections 15‑141 through 15‑144, survivors insurance benefits payable directly from the System as provided in Sections 15‑145 through 15‑149, and contribution refunds as provided in Section 15‑154. The traditional benefit package also includes disability benefits as provided in Sections 15‑150 through 15‑153.3. (Source: P.A. 90‑766, eff. 8‑14‑98.)
(40 ILCS 5/15‑103.2) Sec. 15‑103.2. Portable Benefit Package. "Portable benefit package": The defined benefit retirement program maintained under the System which includes retirement annuities payable directly from the System as provided in Sections 15‑135 through 15‑139 (specifically including Section 15‑136.4), disability retirement annuities payable under Section 15‑153.2, death benefits payable directly from the System as provided in Sections 15‑141 through 15‑144, and contribution refunds as provided in Section 15‑154. The portable benefit package also includes disability benefits as provided in Sections 15‑150 through 15‑153.3. The portable benefit package does not include the survivors insurance benefits payable directly from the System as provided in Sections 15‑145 through 15‑149. (Source: P.A. 90‑766, eff. 8‑14‑98.)
(40 ILCS 5/15‑103.3) Sec. 15‑103.3. Self‑Managed Plan. "Self‑managed plan": The defined contribution retirement program maintained under the System as described in Section 15‑158.2. The self‑managed plan also includes disability benefits as provided in Sections 15‑150 through 15‑153.3 (but disregarding disability retirement annuities under Section 15‑153.2). The self‑managed plan does not include retirement annuities, death benefits, or survivors insurance benefits payable directly from the System as provided in Sections 15‑135 through 15‑149 and Section 15‑153.2, or refunds determined under Section 15‑154. (Source: P.A. 90‑766, eff. 8‑14‑98.)
(40 ILCS 5/15‑104)(from Ch. 108 1/2, par. 15‑104) Sec. 15‑104. The 1941 Act. "The 1941 Act": "An Act to provide for the creation, maintenance and administration of a Retirement System for the benefit of the staff members and employees of the state universities and certain affiliated organizations, certain other state educational and scientific agencies, and the survivors, dependents and other beneficiaries of such employees", approved July 21, 1941 as amended, and repealed in 1963. (Source: P.A. 83‑1440.)
(40 ILCS 5/15‑105)(from Ch. 108 1/2, par. 15‑105) Sec. 15‑105. Board. "Board": The Board of Trustees of the System. (Source: Laws 1963, p. 161.)
(40 ILCS 5/15‑106)(from Ch. 108 1/2, par. 15‑106) Sec. 15‑106. Employer. "Employer": The University of Illinois, Southern Illinois University, Chicago State University, Eastern Illinois University, Governors State University, Illinois State University, Northeastern Illinois University, Northern Illinois University, Western Illinois University, the State Board of Higher Education, the Illinois Mathematics and Science Academy, the University Civil Service Merit Board, the Board of Trustees of the State Universities Retirement System, the Illinois Community College Board, community college boards, any association of community college boards organized under Section 3‑55 of the Public Community College Act, the Board of Examiners established under the Illinois Public Accounting Act, and, only during the period for which employer contributions required under Section 15‑155 are paid, the following organizations: the alumni associations, the foundations and the athletic associations which are affiliated with the universities and colleges included in this Section as employers. A department as defined in Section 14‑103.04 is an employer for any person appointed by the Governor under the Civil Administrative Code of Illinois who is a participating employee as defined in Section 15‑109. The Department of Central Management Services is an employer with respect to persons employed by the State Board of Higher Education in positions with the Illinois Century Network as of June 30, 2004 who remain continuously employed after that date by the Department of Central Management Services in positions with the Illinois Century Network, the Bureau of Communication and Computer Services, or, if applicable, any successor bureau. The cities of Champaign and Urbana shall be considered employers, but only during the period for which contributions are required to be made under subsection (b‑1) of Section 15‑155 and only with respect to individuals described in subsection (h) of Section 15‑107. (Source: P.A. 95‑369, eff. 8‑23‑07; 95‑728, eff. date ‑ See Sec. 999.)
(40 ILCS 5/15‑107)(from Ch. 108 1/2, par. 15‑107) Sec. 15‑107. Employee. (a) "Employee" means any member of the educational, administrative, secretarial, clerical, mechanical, labor or other staff of an employer whose employment is permanent and continuous or who is employed in a position in which services are expected to be rendered on a continuous basis for at least 4 months or one academic term, whichever is less, who (A) receives payment for personal services on a warrant issued pursuant to a payroll voucher certified by an employer and drawn by the State Comptroller upon the State Treasurer or by an employer upon trust, federal or other funds, or (B) is on a leave of absence without pay. Employment which is irregular, intermittent or temporary shall not be considered continuous for purposes of this paragraph. However, a person is not an "employee" if he or she: (1) is a student enrolled in and regularly attending
classes in a college or university which is an employer, and is employed on a temporary basis at less than full time;
(2) is currently receiving a retirement annuity or a
disability retirement annuity under Section 15‑153.2 from this System;
(3) is on a military leave of absence; (4) is eligible to participate in the Federal Civil
Service Retirement System and is currently making contributions to that system based upon earnings paid by an employer;
(5) is on leave of absence without pay for more than
60 days immediately following termination of disability benefits under this Article;
(6) is hired after June 30, 1979 as a public service
employment program participant under the Federal Comprehensive Employment and Training Act and receives earnings in whole or in part from funds provided under that Act; or
(7) is employed on or after July 1, 1991 to perform
services that are excluded by subdivision (a)(7)(f) or (a)(19) of Section 210 of the federal Social Security Act from the definition of employment given in that Section (42 U.S.C. 410).
(b) Any employer may, by filing a written notice with the board, exclude from the definition of "employee" all persons employed pursuant to a federally funded contract entered into after July 1, 1982 with a federal military department in a program providing training in military courses to federal military personnel on a military site owned by the United States Government, if this exclusion is not prohibited by the federally funded contract or federal laws or rules governing the administration of the contract. (c) Any person appointed by the Governor under the Civil Administrative Code of the State is an employee, if he or she is a participant in this system on the effective date of the appointment. (d) A participant on lay‑off status under civil service rules is considered an employee for not more than 120 days from the date of the lay‑off. (e) A participant is considered an employee during (1) the first 60 days of disability leave, (2) the period, not to exceed one year, in which his or her eligibility for disability benefits is being considered by the board or reviewed by the courts, and (3) the period he or she receives disability benefits under the provisions of Section 15‑152, workers' compensation or occupational disease benefits, or disability income under an insurance contract financed wholly or partially by the employer. (f) Absences without pay, other than formal leaves of absence, of less than 30 calendar days, are not considered as an interruption of a person's status as an employee. If such absences during any period of 12 months exceed 30 work days, the employee status of the person is considered as interrupted as of the 31st work day. (g) A staff member whose employment contract requires services during an academic term is to be considered an employee during the summer and other vacation periods, unless he or she declines an employment contract for the succeeding academic term or his or her employment status is otherwise terminated, and he or she receives no earnings during these periods. (h) An individual who was a participating employee employed in the fire department of the University of Illinois's Champaign‑Urbana campus immediately prior to the elimination of that fire department and who immediately after the elimination of that fire department became employed by the fire department of the City of Urbana or the City of Champaign shall continue to be considered as an employee for purposes of this Article for so long as the individual remains employed as a firefighter by the City of Urbana or the City of Champaign. The individual shall cease to be considered an employee under this subsection (h) upon the first termination of the individual's employment as a firefighter by the City of Urbana or the City of Champaign. (i) An individual who is employed on a full‑time basis as an officer or employee of a statewide teacher organization that serves System participants or an officer of a national teacher organization that serves System participants may participate in the System and shall be deemed an employee, provided that (1) the individual has previously earned creditable service under this Article, (2) the individual files with the System an irrevocable election to become a participant, and (3) the individual does not receive credit for that employment under any other Article of this Code. An employee under this subsection (i) is responsible for paying to the System both (A) employee contributions based on the actual compensation received for service with the teacher organization and (B) employer contributions equal to the normal costs (as defined in Section 15‑155) resulting from that service; all or any part of these contributions may be paid on the employee's behalf or picked up for tax purposes (if authorized under federal law) by the teacher organization. A person who is an employee as defined in this subsection (i) may establish service credit for similar employment prior to becoming an employee under this subsection by paying to the System for that employment the contributions specified in this subsection, plus interest at the effective rate from the date of service to the date of payment. However, credit shall not be granted under this subsection for any such prior employment for which the applicant received credit under any other provision of this Code, or during which the applicant was on a leave of absence under Section 15‑113.2. (j) A person employed by the State Board of Higher Education in a position with the Illinois Century Network as of June 30, 2004 shall be considered to be an employee for so long as he or she remains continuously employed after that date by the Department of Central Management Services in a position with the Illinois Century Network, the Bureau of Communication and Computer Services, or, if applicable, any successor bureau and meets the requirements of subsection (a). (Source: P.A. 95‑369, eff. 8‑23‑07.)
(40 ILCS 5/15‑108)(from Ch. 108 1/2, par. 15‑108) Sec. 15‑108. Participant. "Participant": A person participating in this system as specified in Section 15‑134. (Source: P.A. 83‑1440.)
(40 ILCS 5/15‑109)(from Ch. 108 1/2, par. 15‑109) Sec. 15‑109. Participating employee. "Participating employee": A participant who at the time is an employee. (Source: P.A. 83‑1440.)
(40 ILCS 5/15‑110)(from Ch. 108 1/2, par. 15‑110) Sec. 15‑110. Basic compensation. "Basic compensation": The gross basic rate of salary or wages payable by an employer, including the value of maintenance, board, living quarters, personal laundry or other allowances furnished in lieu of salary which are considered gross income under the Federal Internal Revenue Code, the employee contributions required under Section 15‑157, and the amount paid by any employer to a custodial account for investment in regulated investment company stocks for the benefit of the employee pursuant to "An Act in relation to payments to custodial accounts for the benefit of employees of public institutions of higher education", approved September 9, 1983, and the amount of the premium payable by any employer to an insurance company or companies on an annuity contract, pursuant to the employee's election to accept a reduction in earnings or forego an increase in earnings under Section 30c of "An Act in relation to State Finance," approved June 10, 1919, as amended, or a tax‑sheltered annuity plan approved by any employer. Basic compensation does not include (1) salary or wages for overtime or other extra service; (2) prospective salary or wages under a summer teaching contract not yet entered upon; and (3) overseas differential allowances, quarters allowances, post allowances, educational allowances and transportation allowances paid by an employer under a contract with the federal government or its agencies for services rendered in other countries. If an employee elects to receive in lieu of cash salary or wages, fringe benefits which are not taxable under the Federal Internal Revenue Code, the amount of the cash salary or wages which is waived shall be included in determining basic compensation. (Source: P.A. 84‑1308.)
(40 ILCS 5/15‑111)(from Ch. 108 1/2, par. 15‑111) Sec. 15‑111. Earnings. "Earnings": An amount paid for personal services equal to the sum of the basic compensation plus extra compensation for summer teaching, overtime or other extra service. For periods for which an employee receives service credit under subsection (c) of Section 15‑113.1 or Section 15‑113.2, earnings are equal to the basic compensation on which contributions are paid by the employee during such periods. Compensation for employment which is irregular, intermittent and temporary shall not be considered earnings, unless the participant is also receiving earnings from the employer as an employee under Section 15‑107. With respect to transition pay paid by the University of Illinois to a person who was a participating employee employed in the fire department of the University of Illinois's Champaign‑Urbana campus immediately prior to the elimination of that fire department: (1) "Earnings" includes transition pay paid to the
employee on or after the effective date of this amendatory Act of the 91st General Assembly.
(2) "Earnings" includes transition pay paid to the
employee before the effective date of this amendatory Act of the 91st General Assembly only if (i) employee contributions under Section 15‑157 have been withheld from that transition pay or (ii) the employee pays to the System before January 1, 2001 an amount representing employee contributions under Section 15‑157 on that transition pay. Employee contributions under item (ii) may be paid in a lump sum, by withholding from additional transition pay accruing before January 1, 2001, or in any other manner approved by the System. Upon payment of the employee contributions on transition pay, the corresponding employer contributions become an obligation of the State.
(Source: P.A. 91‑887, eff. 7‑6‑00.)
(40 ILCS 5/15‑112)(from Ch. 108 1/2, par. 15‑112) Sec. 15‑112. Final rate of earnings. "Final rate of earnings": For an employee who is paid on an hourly basis or who receives an annual salary in installments during 12 months of each academic year, the average annual earnings during the 48 consecutive calendar month period ending with the last day of final termination of employment or the 4 consecutive academic years of service in which the employee's earnings were the highest, whichever is greater. For any other employee, the average annual earnings during the 4 consecutive academic years of service in which his or her earnings were the highest. For an employee with less than 48 months or 4 consecutive academic years of service, the average earnings during his or her entire period of service. The earnings of an employee with more than 36 months of service prior to the date of becoming a participant are, for such period, considered equal to the average earnings during the last 36 months of such service. For an employee on leave of absence with pay, or on leave of absence without pay who makes contributions during such leave, earnings are assumed to be equal to the basic compensation on the date the leave began. For an employee on disability leave, earnings are assumed to be equal to the basic compensation on the date disability occurs or the average earnings during the 24 months immediately preceding the month in which disability occurs, whichever is greater. For a participant who retires on or after the effective date of this amendatory Act of 1997 with at least 20 years of service as a firefighter or police officer under this Article, the final rate of earnings shall be the annual rate of earnings received by the participant on his or her last day as a firefighter or police officer under this Article, if that is greater than the final rate of earnings as calculated under the other provisions of this Section. If a participant is an employee for at least 6 months during the academic year in which his or her employment is terminated, the annual final rate of earnings shall be 25% of the sum of (1) the annual basic compensation for that year, and (2) the amount earned during the 36 months immediately preceding that year, if this is greater than the final rate of earnings as calculated under the other provisions of this Section. In the determination of the final rate of earnings for an employee, that part of an employee's earnings for any academic year beginning after June 30, 1997, which exceeds the employee's earnings with that employer for the preceding year by more than 20 percent shall be excluded; in the event that an employee has more than one employer this limitation shall be calculated separately for the earnings with each employer. In making such calculation, only the basic compensation of employees shall be considered, without regard to vacation or overtime or to contracts for summer employment. The following are not considered as earnings in determining final rate of earnings: (1) severance or separation pay, (2) retirement pay, (3) payment for unused sick leave, and (4) payments from an employer for the period used in determining final rate of earnings for any purpose other than (i) services rendered, (ii) leave of absence or vacation granted during that period, and (iii) vacation of up to 56 work days allowed upon termination of employment; except that, if the benefit has been collectively bargained between the employer and the recognized collective bargaining agent pursuant to the Illinois Educational Labor Relations Act, payment received during a period of up to 2 academic years for unused sick leave may be considered as earnings in accordance with the applicable collective bargaining agreement, subject to the 20% increase limitation of this Section. Any unused sick leave considered as earnings under this Section shall not be taken into account in calculating service credit under Section 15‑113.4. Intermittent periods of service shall be considered as consecutive in determining final rate of earnings. (Source: P.A. 92‑599, eff. 6‑28‑02; 93‑347, eff. 7‑24‑03.)
(40 ILCS 5/15‑113)(from Ch. 108 1/2, par. 15‑113) Sec. 15‑113. Service. "Service": The periods defined in Sections 15‑113.1 through 15‑113.9. (Source: P.A. 84‑1472.)
(40 ILCS 5/15‑113.1)(from Ch. 108 1/2, par. 15‑113.1) Sec. 15‑113.1. Service for employment with an employer defined under Section 15‑106. "Service for employment with an employer defined under Section 15‑106": Includes the following periods: (a) periods prior to September 1, 1941 during which a person was permanently and continuously employed by an employer. (b) periods after August 31, 1941 during which a person was an employee except (1) those during which the employee elected not to participate or was ineligible to participate, (2) those during which the employee was on leave of absence at less than 50% pay, except military and disability leave, but failed, in accordance with rules prescribed by the board, to elect to make and to pay the contributions required under Section 15‑157, and (3) those during which the employee's eligibility for disability benefit was being considered by the board or reviewed by the courts, if the disability benefit was denied. (c) periods after August 31, 1941 during which a person was employed at least one‑half time for an employer preceding the date of becoming a participant or during which a person was employed at least one‑half time for an employer not subject to "The 1941 Act" which employer has since been included as an employer under "The 1941 Act", or this Article, provided the person makes the contributions required under Section 15‑157 based on the rate of earnings during this period equal to the basic compensation on the date of becoming a participating employee together with compound interest from the date participation began to the date payment is received by the board at the rate of 6% per annum through August 31, 1982, and at the effective rates after that date, and provided that the contributions required under Section 15‑155 are also made. However, no service credit shall be allowed for any period of employment during which an individual is excluded from the definition of an employee as provided under subsection (b) of Section 15‑107. (Source: P.A. 84‑1028.)
(40 ILCS 5/15‑113.2)(from Ch. 108 1/2, par. 15‑113.2) Sec. 15‑113.2. Service for leaves of absence. "Service for leaves of absence" includes those periods of leaves of absence at less than 50% pay, except military leave and periods of disability leave in excess of 60 days, for which the employee pays the contributions required under Section 15‑157 in accordance with rules prescribed by the board based upon the employee's basic compensation on the date the leave begins, or in the case of leave for service with a teacher organization, based upon the actual compensation received by the employee for such service after January 26, 1988, if the employee so elects within 30 days of that date or the date the leave for service with a teacher organization begins, whichever is later; provided that the employee (1) returns to employment covered by this system at the expiration of the leave, or within 30 days after the termination of a disability which occurs during the leave and continues this employment at a percentage of time equal to or greater than the percentage of time immediately preceding the leave of absence for at least 8 consecutive months or a period equal to the period of the leave, whichever is less, or (2) is precluded from meeting the foregoing conditions because of disability or death. If service credit is denied because the employee fails to meet these conditions, the contributions covering the leave of absence shall be refunded without interest. The return to employment condition does not apply if the leave of absence is for service with a teacher organization. Service credit provided under this Section shall not exceed 3 years in any period of 10 years, unless the employee is on special leave granted by the employer for service with a teacher organization. Commencing with the fourth year in any period of 10 years, a participant on such special leave is also required to pay employer contributions equal to the normal cost as defined in Section 15‑155, based upon the employee's basic compensation on the date the leave begins, or based upon the actual compensation received by the employee for service with a teacher organization if the employee has so elected. (Source: P.A. 90‑65, eff. 7‑7‑97; 90‑511, eff. 8‑22‑97.)
(40 ILCS 5/15‑113.3)(from Ch. 108 1/2, par. 15‑113.3) Sec. 15‑113.3. Service for periods of military service. "Service for periods of military service": Those periods, not exceeding 5 years, during which a person served in the armed forces of the United States, of which all but 2 years must have immediately followed a period of employment with an employer under this System or the State Employees' Retirement System of Illinois; provided that the person received a discharge other than dishonorable and again became an employee under this System within one year after discharge. However, for the up to 2 years of military service not immediately following employment, the applicant must make contributions to the System equal to (1) 8% of the employee's basic compensation on the last date as a participating employee prior to such military service, or on the first date as a participating employee after such military service, whichever is greater, plus (2) an amount determined by the board to be equal to the employer's normal cost of the benefits accrued for such military service, plus (3) interest on items (1) and (2) at the effective rate from the later of the date of first membership in the System or the date of conclusion of military service to the date of payment. The change in the required contribution for purchased military credit made by this amendatory Act of 1993 does not entitle any person to a refund of contributions already paid. The contributions paid under this Section are not normal contributions as defined in Section 15‑114 or additional contributions as defined in Section 15‑115. The changes to this Section made by this amendatory Act of 1991 shall apply not only to persons who on or after its effective date are in service under the System, but also to persons whose employment terminated prior to that date, whether or not the person is an annuitant on that date. In the case of an annuitant who applies for credit allowable under this Section for a period of military service that did not immediately follow employment, and who has made the required contributions for such credit, the annuity shall be recalculated to include the additional service credit, with the increase taking effect on the date the System received written notification of the annuitant's intent to purchase the credit, if payment of all the required contributions is made within 60 days of such notice, or else on the first annuity payment date following the date of payment of the required contributions. In calculating the automatic annual increase for an annuity that has been recalculated under this Section, the increase attributable to the additional service allowable under this amendatory Act of 1991 shall be included in the calculation of automatic annual increases accruing after the effective date of the recalculation. (Source: P.A. 93‑347, eff. 7‑24‑03.)
(40 ILCS 5/15‑113.4)(from Ch. 108 1/2, par. 15‑113.4) Sec. 15‑113.4. Service for unused sick leave. "Service for unused sick leave": A participant who is an employee under this System or one of the other systems subject to Article 20 of this Code within 60 days immediately preceding the date on which his or her retirement annuity begins, is entitled to credit for service for that portion of unused sick leave earned in the course of employment with an employer and credited on the date of termination of employment by an employer for which payment is not received, in accordance with the following schedule: 30 through 90 full calendar days and 20 through 59 full work days of unused sick leave, 1/4 of a year of service; 91 through 180 full calendar days and 60 through 119 full work days, 1/2 of a year of service; 181 through 270 full calendar days and 120 through 179 full work days, 3/4 of a year of service; 271 through 360 full calendar days and 180 through 240 full work days, one year of service. Only uncompensated, unused sick leave earned in accordance with an employer's sick leave accrual policy generally applicable to employees or a class of employees shall be taken into account in calculating service credit under this Section. Any uncompensated, unused sick leave granted by an employer to facilitate the hiring, retirement, termination, or other special circumstances of an employee shall not be taken into account in calculating service credit under this Section. If a participant transfers from one employer to another, the unused sick leave credited by the previous employer shall be considered in determining service to be credited under this Section, even if the participant terminated service prior to the effective date of P.A. 86‑272 (August 23, 1989); if necessary, the retirement annuity shall be recalculated to reflect such sick leave credit. Each employer shall certify to the board the number of days of unused sick leave accrued to the participant's credit on the date that the participant's status as an employee terminated. This period of unused sick leave shall not be considered in determining the date the retirement annuity begins. (Source: P.A. 90‑65, eff. 7‑7‑97; 90‑511, eff. 8‑22‑97.)
(40 ILCS 5/15‑113.5)(from Ch. 108 1/2, par. 15‑113.5) Sec. 15‑113.5. Service for employment with other public agencies in this State. "Service for employment with other public agencies in this State" includes the following periods: (a) periods during which a person rendered services for the State of Illinois, prior to January 1, 1944, under employment not covered by this Article, if (1) such periods would have been considered creditable service under the State Employees' Retirement System of Illinois had that system been in effect at that time, and (2) service credit for such periods has not been
(40 ILCS 5/15‑101)(from Ch. 108 1/2, par. 15‑101) Sec. 15‑101. Creation of system. A retirement system is created to provide retirement annuities and other benefits for employees, as defined in this Article, and their dependents. The system shall be known and may be cited as State Universities Retirement System. All the business of the system shall be transacted in that name. (Source: P.A. 83‑1440.)
(40 ILCS 5/15‑102)(from Ch. 108 1/2, par. 15‑102) Sec. 15‑102. Terms defined. The terms used in this Article shall have the meanings ascribed to them in Sections 15‑103 through 15‑132.1, except when the context otherwise requires. (Source: P.A. 91‑357, eff. 7‑29‑99.)
(40 ILCS 5/15‑103)(from Ch. 108 1/2, par. 15‑103) Sec. 15‑103. System. "System": The State Universities Retirement System. (Source: P.A. 83‑1440.)
(40 ILCS 5/15‑103.1) Sec. 15‑103.1. Traditional Benefit Package. "Traditional benefit package": The defined benefit retirement program maintained under the System which includes retirement annuities payable directly from the System as provided in Sections 15‑135 through 15‑140 (but disregarding Section 15‑136.4), disability retirement annuities payable under Section 15‑153.2, death benefits payable directly from the System as provided in Sections 15‑141 through 15‑144, survivors insurance benefits payable directly from the System as provided in Sections 15‑145 through 15‑149, and contribution refunds as provided in Section 15‑154. The traditional benefit package also includes disability benefits as provided in Sections 15‑150 through 15‑153.3. (Source: P.A. 90‑766, eff. 8‑14‑98.)
(40 ILCS 5/15‑103.2) Sec. 15‑103.2. Portable Benefit Package. "Portable benefit package": The defined benefit retirement program maintained under the System which includes retirement annuities payable directly from the System as provided in Sections 15‑135 through 15‑139 (specifically including Section 15‑136.4), disability retirement annuities payable under Section 15‑153.2, death benefits payable directly from the System as provided in Sections 15‑141 through 15‑144, and contribution refunds as provided in Section 15‑154. The portable benefit package also includes disability benefits as provided in Sections 15‑150 through 15‑153.3. The portable benefit package does not include the survivors insurance benefits payable directly from the System as provided in Sections 15‑145 through 15‑149. (Source: P.A. 90‑766, eff. 8‑14‑98.)
(40 ILCS 5/15‑103.3) Sec. 15‑103.3. Self‑Managed Plan. "Self‑managed plan": The defined contribution retirement program maintained under the System as described in Section 15‑158.2. The self‑managed plan also includes disability benefits as provided in Sections 15‑150 through 15‑153.3 (but disregarding disability retirement annuities under Section 15‑153.2). The self‑managed plan does not include retirement annuities, death benefits, or survivors insurance benefits payable directly from the System as provided in Sections 15‑135 through 15‑149 and Section 15‑153.2, or refunds determined under Section 15‑154. (Source: P.A. 90‑766, eff. 8‑14‑98.)
(40 ILCS 5/15‑104)(from Ch. 108 1/2, par. 15‑104) Sec. 15‑104. The 1941 Act. "The 1941 Act": "An Act to provide for the creation, maintenance and administration of a Retirement System for the benefit of the staff members and employees of the state universities and certain affiliated organizations, certain other state educational and scientific agencies, and the survivors, dependents and other beneficiaries of such employees", approved July 21, 1941 as amended, and repealed in 1963. (Source: P.A. 83‑1440.)
(40 ILCS 5/15‑105)(from Ch. 108 1/2, par. 15‑105) Sec. 15‑105. Board. "Board": The Board of Trustees of the System. (Source: Laws 1963, p. 161.)
(40 ILCS 5/15‑106)(from Ch. 108 1/2, par. 15‑106) Sec. 15‑106. Employer. "Employer": The University of Illinois, Southern Illinois University, Chicago State University, Eastern Illinois University, Governors State University, Illinois State University, Northeastern Illinois University, Northern Illinois University, Western Illinois University, the State Board of Higher Education, the Illinois Mathematics and Science Academy, the University Civil Service Merit Board, the Board of Trustees of the State Universities Retirement System, the Illinois Community College Board, community college boards, any association of community college boards organized under Section 3‑55 of the Public Community College Act, the Board of Examiners established under the Illinois Public Accounting Act, and, only during the period for which employer contributions required under Section 15‑155 are paid, the following organizations: the alumni associations, the foundations and the athletic associations which are affiliated with the universities and colleges included in this Section as employers. A department as defined in Section 14‑103.04 is an employer for any person appointed by the Governor under the Civil Administrative Code of Illinois who is a participating employee as defined in Section 15‑109. The Department of Central Management Services is an employer with respect to persons employed by the State Board of Higher Education in positions with the Illinois Century Network as of June 30, 2004 who remain continuously employed after that date by the Department of Central Management Services in positions with the Illinois Century Network, the Bureau of Communication and Computer Services, or, if applicable, any successor bureau. The cities of Champaign and Urbana shall be considered employers, but only during the period for which contributions are required to be made under subsection (b‑1) of Section 15‑155 and only with respect to individuals described in subsection (h) of Section 15‑107. (Source: P.A. 95‑369, eff. 8‑23‑07; 95‑728, eff. date ‑ See Sec. 999.)
(40 ILCS 5/15‑107)(from Ch. 108 1/2, par. 15‑107) Sec. 15‑107. Employee. (a) "Employee" means any member of the educational, administrative, secretarial, clerical, mechanical, labor or other staff of an employer whose employment is permanent and continuous or who is employed in a position in which services are expected to be rendered on a continuous basis for at least 4 months or one academic term, whichever is less, who (A) receives payment for personal services on a warrant issued pursuant to a payroll voucher certified by an employer and drawn by the State Comptroller upon the State Treasurer or by an employer upon trust, federal or other funds, or (B) is on a leave of absence without pay. Employment which is irregular, intermittent or temporary shall not be considered continuous for purposes of this paragraph. However, a person is not an "employee" if he or she: (1) is a student enrolled in and regularly attending
classes in a college or university which is an employer, and is employed on a temporary basis at less than full time;
(2) is currently receiving a retirement annuity or a
disability retirement annuity under Section 15‑153.2 from this System;
(3) is on a military leave of absence; (4) is eligible to participate in the Federal Civil
Service Retirement System and is currently making contributions to that system based upon earnings paid by an employer;
(5) is on leave of absence without pay for more than
60 days immediately following termination of disability benefits under this Article;
(6) is hired after June 30, 1979 as a public service
employment program participant under the Federal Comprehensive Employment and Training Act and receives earnings in whole or in part from funds provided under that Act; or
(7) is employed on or after July 1, 1991 to perform
services that are excluded by subdivision (a)(7)(f) or (a)(19) of Section 210 of the federal Social Security Act from the definition of employment given in that Section (42 U.S.C. 410).
(b) Any employer may, by filing a written notice with the board, exclude from the definition of "employee" all persons employed pursuant to a federally funded contract entered into after July 1, 1982 with a federal military department in a program providing training in military courses to federal military personnel on a military site owned by the United States Government, if this exclusion is not prohibited by the federally funded contract or federal laws or rules governing the administration of the contract. (c) Any person appointed by the Governor under the Civil Administrative Code of the State is an employee, if he or she is a participant in this system on the effective date of the appointment. (d) A participant on lay‑off status under civil service rules is considered an employee for not more than 120 days from the date of the lay‑off. (e) A participant is considered an employee during (1) the first 60 days of disability leave, (2) the period, not to exceed one year, in which his or her eligibility for disability benefits is being considered by the board or reviewed by the courts, and (3) the period he or she receives disability benefits under the provisions of Section 15‑152, workers' compensation or occupational disease benefits, or disability income under an insurance contract financed wholly or partially by the employer. (f) Absences without pay, other than formal leaves of absence, of less than 30 calendar days, are not considered as an interruption of a person's status as an employee. If such absences during any period of 12 months exceed 30 work days, the employee status of the person is considered as interrupted as of the 31st work day. (g) A staff member whose employment contract requires services during an academic term is to be considered an employee during the summer and other vacation periods, unless he or she declines an employment contract for the succeeding academic term or his or her employment status is otherwise terminated, and he or she receives no earnings during these periods. (h) An individual who was a participating employee employed in the fire department of the University of Illinois's Champaign‑Urbana campus immediately prior to the elimination of that fire department and who immediately after the elimination of that fire department became employed by the fire department of the City of Urbana or the City of Champaign shall continue to be considered as an employee for purposes of this Article for so long as the individual remains employed as a firefighter by the City of Urbana or the City of Champaign. The individual shall cease to be considered an employee under this subsection (h) upon the first termination of the individual's employment as a firefighter by the City of Urbana or the City of Champaign. (i) An individual who is employed on a full‑time basis as an officer or employee of a statewide teacher organization that serves System participants or an officer of a national teacher organization that serves System participants may participate in the System and shall be deemed an employee, provided that (1) the individual has previously earned creditable service under this Article, (2) the individual files with the System an irrevocable election to become a participant, and (3) the individual does not receive credit for that employment under any other Article of this Code. An employee under this subsection (i) is responsible for paying to the System both (A) employee contributions based on the actual compensation received for service with the teacher organization and (B) employer contributions equal to the normal costs (as defined in Section 15‑155) resulting from that service; all or any part of these contributions may be paid on the employee's behalf or picked up for tax purposes (if authorized under federal law) by the teacher organization. A person who is an employee as defined in this subsection (i) may establish service credit for similar employment prior to becoming an employee under this subsection by paying to the System for that employment the contributions specified in this subsection, plus interest at the effective rate from the date of service to the date of payment. However, credit shall not be granted under this subsection for any such prior employment for which the applicant received credit under any other provision of this Code, or during which the applicant was on a leave of absence under Section 15‑113.2. (j) A person employed by the State Board of Higher Education in a position with the Illinois Century Network as of June 30, 2004 shall be considered to be an employee for so long as he or she remains continuously employed after that date by the Department of Central Management Services in a position with the Illinois Century Network, the Bureau of Communication and Computer Services, or, if applicable, any successor bureau and meets the requirements of subsection (a). (Source: P.A. 95‑369, eff. 8‑23‑07.)
(40 ILCS 5/15‑108)(from Ch. 108 1/2, par. 15‑108) Sec. 15‑108. Participant. "Participant": A person participating in this system as specified in Section 15‑134. (Source: P.A. 83‑1440.)
(40 ILCS 5/15‑109)(from Ch. 108 1/2, par. 15‑109) Sec. 15‑109. Participating employee. "Participating employee": A participant who at the time is an employee. (Source: P.A. 83‑1440.)
(40 ILCS 5/15‑110)(from Ch. 108 1/2, par. 15‑110) Sec. 15‑110. Basic compensation. "Basic compensation": The gross basic rate of salary or wages payable by an employer, including the value of maintenance, board, living quarters, personal laundry or other allowances furnished in lieu of salary which are considered gross income under the Federal Internal Revenue Code, the employee contributions required under Section 15‑157, and the amount paid by any employer to a custodial account for investment in regulated investment company stocks for the benefit of the employee pursuant to "An Act in relation to payments to custodial accounts for the benefit of employees of public institutions of higher education", approved September 9, 1983, and the amount of the premium payable by any employer to an insurance company or companies on an annuity contract, pursuant to the employee's election to accept a reduction in earnings or forego an increase in earnings under Section 30c of "An Act in relation to State Finance," approved June 10, 1919, as amended, or a tax‑sheltered annuity plan approved by any employer. Basic compensation does not include (1) salary or wages for overtime or other extra service; (2) prospective salary or wages under a summer teaching contract not yet entered upon; and (3) overseas differential allowances, quarters allowances, post allowances, educational allowances and transportation allowances paid by an employer under a contract with the federal government or its agencies for services rendered in other countries. If an employee elects to receive in lieu of cash salary or wages, fringe benefits which are not taxable under the Federal Internal Revenue Code, the amount of the cash salary or wages which is waived shall be included in determining basic compensation. (Source: P.A. 84‑1308.)
(40 ILCS 5/15‑111)(from Ch. 108 1/2, par. 15‑111) Sec. 15‑111. Earnings. "Earnings": An amount paid for personal services equal to the sum of the basic compensation plus extra compensation for summer teaching, overtime or other extra service. For periods for which an employee receives service credit under subsection (c) of Section 15‑113.1 or Section 15‑113.2, earnings are equal to the basic compensation on which contributions are paid by the employee during such periods. Compensation for employment which is irregular, intermittent and temporary shall not be considered earnings, unless the participant is also receiving earnings from the employer as an employee under Section 15‑107. With respect to transition pay paid by the University of Illinois to a person who was a participating employee employed in the fire department of the University of Illinois's Champaign‑Urbana campus immediately prior to the elimination of that fire department: (1) "Earnings" includes transition pay paid to the
employee on or after the effective date of this amendatory Act of the 91st General Assembly.
(2) "Earnings" includes transition pay paid to the
employee before the effective date of this amendatory Act of the 91st General Assembly only if (i) employee contributions under Section 15‑157 have been withheld from that transition pay or (ii) the employee pays to the System before January 1, 2001 an amount representing employee contributions under Section 15‑157 on that transition pay. Employee contributions under item (ii) may be paid in a lump sum, by withholding from additional transition pay accruing before January 1, 2001, or in any other manner approved by the System. Upon payment of the employee contributions on transition pay, the corresponding employer contributions become an obligation of the State.
(Source: P.A. 91‑887, eff. 7‑6‑00.)
(40 ILCS 5/15‑112)(from Ch. 108 1/2, par. 15‑112) Sec. 15‑112. Final rate of earnings. "Final rate of earnings": For an employee who is paid on an hourly basis or who receives an annual salary in installments during 12 months of each academic year, the average annual earnings during the 48 consecutive calendar month period ending with the last day of final termination of employment or the 4 consecutive academic years of service in which the employee's earnings were the highest, whichever is greater. For any other employee, the average annual earnings during the 4 consecutive academic years of service in which his or her earnings were the highest. For an employee with less than 48 months or 4 consecutive academic years of service, the average earnings during his or her entire period of service. The earnings of an employee with more than 36 months of service prior to the date of becoming a participant are, for such period, considered equal to the average earnings during the last 36 months of such service. For an employee on leave of absence with pay, or on leave of absence without pay who makes contributions during such leave, earnings are assumed to be equal to the basic compensation on the date the leave began. For an employee on disability leave, earnings are assumed to be equal to the basic compensation on the date disability occurs or the average earnings during the 24 months immediately preceding the month in which disability occurs, whichever is greater. For a participant who retires on or after the effective date of this amendatory Act of 1997 with at least 20 years of service as a firefighter or police officer under this Article, the final rate of earnings shall be the annual rate of earnings received by the participant on his or her last day as a firefighter or police officer under this Article, if that is greater than the final rate of earnings as calculated under the other provisions of this Section. If a participant is an employee for at least 6 months during the academic year in which his or her employment is terminated, the annual final rate of earnings shall be 25% of the sum of (1) the annual basic compensation for that year, and (2) the amount earned during the 36 months immediately preceding that year, if this is greater than the final rate of earnings as calculated under the other provisions of this Section. In the determination of the final rate of earnings for an employee, that part of an employee's earnings for any academic year beginning after June 30, 1997, which exceeds the employee's earnings with that employer for the preceding year by more than 20 percent shall be excluded; in the event that an employee has more than one employer this limitation shall be calculated separately for the earnings with each employer. In making such calculation, only the basic compensation of employees shall be considered, without regard to vacation or overtime or to contracts for summer employment. The following are not considered as earnings in determining final rate of earnings: (1) severance or separation pay, (2) retirement pay, (3) payment for unused sick leave, and (4) payments from an employer for the period used in determining final rate of earnings for any purpose other than (i) services rendered, (ii) leave of absence or vacation granted during that period, and (iii) vacation of up to 56 work days allowed upon termination of employment; except that, if the benefit has been collectively bargained between the employer and the recognized collective bargaining agent pursuant to the Illinois Educational Labor Relations Act, payment received during a period of up to 2 academic years for unused sick leave may be considered as earnings in accordance with the applicable collective bargaining agreement, subject to the 20% increase limitation of this Section. Any unused sick leave considered as earnings under this Section shall not be taken into account in calculating service credit under Section 15‑113.4. Intermittent periods of service shall be considered as consecutive in determining final rate of earnings. (Source: P.A. 92‑599, eff. 6‑28‑02; 93‑347, eff. 7‑24‑03.)
(40 ILCS 5/15‑113)(from Ch. 108 1/2, par. 15‑113) Sec. 15‑113. Service. "Service": The periods defined in Sections 15‑113.1 through 15‑113.9. (Source: P.A. 84‑1472.)
(40 ILCS 5/15‑113.1)(from Ch. 108 1/2, par. 15‑113.1) Sec. 15‑113.1. Service for employment with an employer defined under Section 15‑106. "Service for employment with an employer defined under Section 15‑106": Includes the following periods: (a) periods prior to September 1, 1941 during which a person was permanently and continuously employed by an employer. (b) periods after August 31, 1941 during which a person was an employee except (1) those during which the employee elected not to participate or was ineligible to participate, (2) those during which the employee was on leave of absence at less than 50% pay, except military and disability leave, but failed, in accordance with rules prescribed by the board, to elect to make and to pay the contributions required under Section 15‑157, and (3) those during which the employee's eligibility for disability benefit was being considered by the board or reviewed by the courts, if the disability benefit was denied. (c) periods after August 31, 1941 during which a person was employed at least one‑half time for an employer preceding the date of becoming a participant or during which a person was employed at least one‑half time for an employer not subject to "The 1941 Act" which employer has since been included as an employer under "The 1941 Act", or this Article, provided the person makes the contributions required under Section 15‑157 based on the rate of earnings during this period equal to the basic compensation on the date of becoming a participating employee together with compound interest from the date participation began to the date payment is received by the board at the rate of 6% per annum through August 31, 1982, and at the effective rates after that date, and provided that the contributions required under Section 15‑155 are also made. However, no service credit shall be allowed for any period of employment during which an individual is excluded from the definition of an employee as provided under subsection (b) of Section 15‑107. (Source: P.A. 84‑1028.)
(40 ILCS 5/15‑113.2)(from Ch. 108 1/2, par. 15‑113.2) Sec. 15‑113.2. Service for leaves of absence. "Service for leaves of absence" includes those periods of leaves of absence at less than 50% pay, except military leave and periods of disability leave in excess of 60 days, for which the employee pays the contributions required under Section 15‑157 in accordance with rules prescribed by the board based upon the employee's basic compensation on the date the leave begins, or in the case of leave for service with a teacher organization, based upon the actual compensation received by the employee for such service after January 26, 1988, if the employee so elects within 30 days of that date or the date the leave for service with a teacher organization begins, whichever is later; provided that the employee (1) returns to employment covered by this system at the expiration of the leave, or within 30 days after the termination of a disability which occurs during the leave and continues this employment at a percentage of time equal to or greater than the percentage of time immediately preceding the leave of absence for at least 8 consecutive months or a period equal to the period of the leave, whichever is less, or (2) is precluded from meeting the foregoing conditions because of disability or death. If service credit is denied because the employee fails to meet these conditions, the contributions covering the leave of absence shall be refunded without interest. The return to employment condition does not apply if the leave of absence is for service with a teacher organization. Service credit provided under this Section shall not exceed 3 years in any period of 10 years, unless the employee is on special leave granted by the employer for service with a teacher organization. Commencing with the fourth year in any period of 10 years, a participant on such special leave is also required to pay employer contributions equal to the normal cost as defined in Section 15‑155, based upon the employee's basic compensation on the date the leave begins, or based upon the actual compensation received by the employee for service with a teacher organization if the employee has so elected. (Source: P.A. 90‑65, eff. 7‑7‑97; 90‑511, eff. 8‑22‑97.)
(40 ILCS 5/15‑113.3)(from Ch. 108 1/2, par. 15‑113.3) Sec. 15‑113.3. Service for periods of military service. "Service for periods of military service": Those periods, not exceeding 5 years, during which a person served in the armed forces of the United States, of which all but 2 years must have immediately followed a period of employment with an employer under this System or the State Employees' Retirement System of Illinois; provided that the person received a discharge other than dishonorable and again became an employee under this System within one year after discharge. However, for the up to 2 years of military service not immediately following employment, the applicant must make contributions to the System equal to (1) 8% of the employee's basic compensation on the last date as a participating employee prior to such military service, or on the first date as a participating employee after such military service, whichever is greater, plus (2) an amount determined by the board to be equal to the employer's normal cost of the benefits accrued for such military service, plus (3) interest on items (1) and (2) at the effective rate from the later of the date of first membership in the System or the date of conclusion of military service to the date of payment. The change in the required contribution for purchased military credit made by this amendatory Act of 1993 does not entitle any person to a refund of contributions already paid. The contributions paid under this Section are not normal contributions as defined in Section 15‑114 or additional contributions as defined in Section 15‑115. The changes to this Section made by this amendatory Act of 1991 shall apply not only to persons who on or after its effective date are in service under the System, but also to persons whose employment terminated prior to that date, whether or not the person is an annuitant on that date. In the case of an annuitant who applies for credit allowable under this Section for a period of military service that did not immediately follow employment, and who has made the required contributions for such credit, the annuity shall be recalculated to include the additional service credit, with the increase taking effect on the date the System received written notification of the annuitant's intent to purchase the credit, if payment of all the required contributions is made within 60 days of such notice, or else on the first annuity payment date following the date of payment of the required contributions. In calculating the automatic annual increase for an annuity that has been recalculated under this Section, the increase attributable to the additional service allowable under this amendatory Act of 1991 shall be included in the calculation of automatic annual increases accruing after the effective date of the recalculation. (Source: P.A. 93‑347, eff. 7‑24‑03.)
(40 ILCS 5/15‑113.4)(from Ch. 108 1/2, par. 15‑113.4) Sec. 15‑113.4. Service for unused sick leave. "Service for unused sick leave": A participant who is an employee under this System or one of the other systems subject to Article 20 of this Code within 60 days immediately preceding the date on which his or her retirement annuity begins, is entitled to credit for service for that portion of unused sick leave earned in the course of employment with an employer and credited on the date of termination of employment by an employer for which payment is not received, in accordance with the following schedule: 30 through 90 full calendar days and 20 through 59 full work days of unused sick leave, 1/4 of a year of service; 91 through 180 full calendar days and 60 through 119 full work days, 1/2 of a year of service; 181 through 270 full calendar days and 120 through 179 full work days, 3/4 of a year of service; 271 through 360 full calendar days and 180 through 240 full work days, one year of service. Only uncompensated, unused sick leave earned in accordance with an employer's sick leave accrual policy generally applicable to employees or a class of employees shall be taken into account in calculating service credit under this Section. Any uncompensated, unused sick leave granted by an employer to facilitate the hiring, retirement, termination, or other special circumstances of an employee shall not be taken into account in calculating service credit under this Section. If a participant transfers from one employer to another, the unused sick leave credited by the previous employer shall be considered in determining service to be credited under this Section, even if the participant terminated service prior to the effective date of P.A. 86‑272 (August 23, 1989); if necessary, the retirement annuity shall be recalculated to reflect such sick leave credit. Each employer shall certify to the board the number of days of unused sick leave accrued to the participant's credit on the date that the participant's status as an employee terminated. This period of unused sick leave shall not be considered in determining the date the retirement annuity begins. (Source: P.A. 90‑65, eff. 7‑7‑97; 90‑511, eff. 8‑22‑97.)
(40 ILCS 5/15‑113.5)(from Ch. 108 1/2, par. 15‑113.5) Sec. 15‑113.5. Service for employment with other public agencies in this State. "Service for employment with other public agencies in this State" includes the following periods: (a) periods during which a person rendered services for the State of Illinois, prior to January 1, 1944, under employment not covered by this Article, if (1) such periods would have been considered creditable service under the State Employees' Retirement System of Illinois had that system been in effect at that time, and (2) service credit for such periods has not been
