Part 1540: THE ADMINISTRATION AND OPERATION OF THE STATE EMPLOYEES' RETIREMENT SYSTEM OF ILLINOIS

Section 1540.10 Appointment of Retirement System Coordinator a) The head of every department, as defined in the Retirement System Act, shall appoint an individual(s) employed by or assigned to the department to act as "Retirement System Coordinator" for the agency. b) All Departm…

Section 1540.100 Birth Date Verification a) Any person or persons making application for a retirement annuity, survivors or widows annuity, nonoccupational, occupational or temporary disability benefit shall submit as proof of birth date, a legal copy of their birth certificate o…

Section 1540.110 Marriage Verification a) Proof of Marriage 1) Applicants claiming benefits as a surviving spouse must submit proof of marriage. Documents acceptable as proof of marriage are: A) A copy of the public record of marriage. B) A copy of the religious record of the mar…

Section 1540.120 Level Income Option a) Basis of Computation. The Level Income Option shall be based on an estimate of a member's primary Social Security benefit, as provided by the Social Security Administration. The calculation shall be based on standard actuarial tables mainta…

Section 1540.125 Reversionary Annuity a) The reversionary annuity of a member who elects a reversionary annuity, who accepts the provisions of Article 20 of the Code, and who cashes or deposits the payment of a proportional annuity from another participating system prior to the d…

Section 1540.130 Pension Credit for Unused Sick Leave a) Credit for sick leave shall be determined on the basis of a 260-day work year. b) All unused sick days for which the employee receives credit shall be certified by the last employer responsible for maintaining a sick leave …

Section 1540.140 Removal of Children from Care of Surviving Spouse a) Children Under Age 18 If a spouse is receiving a widow's or survivors' annuity prior to age 50 because minor children of the member are under the care of the spouse and the children are legally removed by order…

Section 1540.150 Proof of Dependency In consideration of the payment of an occupational death benefit, survivors annuity or reversionary annuity, person or persons claiming such benefits as a dependent shall submit acceptable proof to the Board that the member was contributing at…

Section 1540.160 Investigations of Benefit Recipients a) The Board of Trustees of the State Employee's Retirement System recognizes its obligation to provide a systematic and ongoing program for the review and investigation of all benefits payable by the System to assure continue…

Section 1540.170 Interest on Member Contributions a) Credited 1) Interest credited on the member's individual account on and after July 1, 1981 shall be computed once a year at the rate of 6.5% per annum compounded annually on the balance at the beginning of each fiscal year and …

Section 1540.180 Date of Application – Retirement Annuity, Occupational and Nonoccupational and Temporary Disability Benefits, and Resignation Refund Payments A member's written request applying for benefit or resignation refund payment provided for in the Retirement System Act s…

Section 1540.190 Lump Sum Salary Payments a) Employee retirement contributions are not to be assessed against certain lump sum salary payments as provided in the Act. b) Compensation received for unused compensatory time shall be applied to the pay period in which it was earned, …

Section 1540.195 Mandatory Distributions Pursuant to Section 401(a)(9) of the Internal Revenue Code The System shall pay all benefits in accordance with a reasonable good faith interpretation of the requirements of section 401(a)(9) of the Internal Revenue Code. When the System i…

Section 1540.20 Member's Contribution and Service Credit a) The percentage of salary prescribed by the Act governing the System as the rate of member contributions shall be applied against the actual amount of compensation earned and accruing to the member, subject to any statuto…

Section 1540.200 Removal From the Payroll Written applications for nonoccupational disability benefits must be received in the Springfield Office of the System within the statutory time frame after the member's name has been removed from the payroll. The term "removal from the pa…

Section 1540.210 Latest Date of Membership a) The term "date he last became a member of the System" as it pertains to the purchase of service credits is the first day of the latest or current period of membership and is not affected by the payment of contributions for any periods…

Section 1540.220 Period for Payment and Amount of Payment of Contributions a) Period for Payment An eligible member shall exercise an option or options to pay contributions to establish credit for service within the deadline or time frame provided by law and shall make the requir…

Section 1540.230 Contributions By the State (Repealed) (Source: Repealed at 8 Ill. Reg. 4144, effective March 26, 1984)

Section 1540.240 Actuarially Funded Basis (Repealed) (Source: Repealed at 11 Ill. Reg. 11155, effective June 15, 1987)

Section 1540.250 Payments to Establish Credit for Service for Which Contributions are Permitted a) If a member receives one or more contribution refunds from the System, past service credits previously refunded will be reinstated only after the two-year minimum service requiremen…

Section 1540.255 Pick-up Option for Optional Service Contributions a) "Member" as used in this Section means any person who is entitled to reinstate past service credits previously refunded or purchase permissive service credits under the Act creating the State Employees' Retirem…

Section 1540.260 Contributions and Service Credit During Nonwork Periods When State law requires that service credit be granted to a member during nonwork periods, such credit shall be granted based on the member's normal work schedule. Employee and employer contributions shall b…

Section 1540.265 Contributions Due for Service Subject to the Uniformed Services and Reemployment Rights Act A member who receives compensation from a department under the Uniformed Services and Reemployment Rights Act (P.L. 103-353) shall, for the period they receive such compen…

Section 1540.266 Unconditional Discharge other than by Dishonorable Discharge a) For purposes of Section 14-105(b)(2) of the Pension Code, “unconditional discharge other than by dishonorable discharge”, means: 1) the member has not been discharged dishonorably from active-duty mi…

Section 1540.270 Written Appeals and Hearings a) Definition of Terms "Authorized Representative" – a person representing a Petitioner in a written appeal or hearing. "Executive Committee" – a committee consisting of one member of the Board of Trustees, the Chairperson of the Boar…

Section 1540.280 Availability for Public Inspection (Recodified) (Source: Recodified to 2 Ill. Adm. Code 2375.10 at 8 Ill. Reg. 15902)

Section 1540.290 Procedure for Submission, Consideration and Disposition of Petitions Seeking the Promulgation, Amendment or Repeal of these Rules and Regulations (Recodified) (Source: Recodified to 2 Ill. Adm. Code 2375.110 at 8 Ill. Reg. 15902)

Section 1540.30 Determination of Rate of Compensation The following schedule is to be used in establishing monthly rate of compensation for employees receiving salary payments on an hourly, per diem, monthly or part-time basis: a) For all Service Prior to January 1, 1978 1) Full-…

Section 1540.300 Organization of the State Employees' Retirement System (Recodified) (Source: Recodified to 2 Ill. Adm. Code 2375.210 at 8 Ill. Reg. 15902)

Section 1540.310 Amendments This Part may be changed or amended at any regular or special meeting of the Board by a majority vote of the membership of the Board.

Section 1540.320 Optional Forms of Benefits - Basis of Computation For purposes of computing optional forms of benefit provided in the Retirement Act, the interest used shall be 8.50% per annum and the mortality rate shall be 52% of the rate in Table A, column A plus 48% of the r…

Section 1540.330 Board Elections In accordance with the Illinois Pension Code, an election for 2 trustees, one contributing member with at least 8 years of creditable service and one annuitant who has been an annuitant for at least one full year, will be held every 5 years beginn…

Section 1540.331 Board Vacancies When a vacancy occurs for an active or retired elected trustee position, the Board shall appoint a qualifying member to fill the vacancy for the remainder of that term. The announcement of the vacancy and the process to fill such vacancy shall be …

Section 1540.340 Excess Benefit Arrangement a) Adoption and Nature of the Arrangement. 1) The Arrangement. The State Employees' Retirement System of Illinois, pursuant to the authority granted to it by 40 ILCS 5/1-116, hereby adopts the State Employees' Retirement System of Illin…

Section 1540.350 Qualified Illinois Domestic Relations Orders (QILDRO) a) Definitions 1) The definitions in Section 1-119(a) of the Illinois Pension Code (Code) [40 ILCS 5] shall apply to this Section. 2) "Death Benefit" in Section 1-119(a)(2) of the Code includes a lump sum paym…

Section 1540.360 Election to be an Employee under Section 14-103.05(b)(3) of the Illinois Pension Code An election to be considered an "employee" under Section 14-103.05(b)(3) of the Illinois Pension Code is an irrevocable election for all periods during which the person is servi…

Section 1540.370 Americans With Disabilities Act a) Purpose 1) This grievance procedure is established pursuant to the Americans With Disabilities Act of 1990 (ADA) (42 USC 12101 et seq.) and specifically Section 35.107 of the Title II regulations (28 CFR 35.107), requiring the a…

Section 1540.380 Correction of Mistakes in Benefit Payments a) If SERS mistakenly sets any benefit at an incorrect amount, it will recalculate the benefit as soon as may be practicable after the mistake is discovered. b) If the recalculation results in a determination by SERS tha…

Section 1540.385 Suspension of Benefits from Uncashed Warrants a) Monthly benefit payments to annuitants may be suspended when four monthly warrants remain uncashed. The System shall inquire as to the cause for the uncashed warrants. These and subsequent payments shall be made up…

Section 1540.390 Freedom of Information Act a) Purpose. This Section establishes policies and procedures specific to SERS concerning requests for information made under FOIA [5 ILCS 140]. b) Freedom of Information Officer. The Freedom of Information Officer is the staff member at…

Section 1540.395 Accelerated Pension Benefit Payment Program a) Purpose. This Section establishes policies specific to SERS concerning the Accelerated Pension Benefit Payment Options authorized by Sections 14‑147.5 and 14‑147.6 of the Illinois Pension Code (Code) [40 ILCS 5]. b) …

Section 1540.399 Minimum Total Survivors' Annuity Benefit Payments to Multiple Eligible Survivors of a Tier 1 Member a) If the minimum total survivor's annuity benefit prescribed under Section 14-121(i) of the Code is payable on behalf of a deceased Tier 1 member, and an eligible…

Section 1540.40 Prior Service Credit a) Prior Service Form Any member claiming prior service credit shall file at the Springfield Office of the System a written statement on a form prescribed by the Board setting forth in detail all service for which he claims credit rendered pri…

Section 1540.400 Multiple Survivors of a Tier 2 Member a) If 2 or more persons are eligible to receive survivor's annuities, as provided under either Section 1-160(f) or 1-161(i) of the Code, based on the same deceased Tier 2 member, then the calculation of the survivors' annuiti…

Section 1540.401 Implementation of Section 14-110(a-5) of the Code a) The term, "files for the retirement benefit with the System" as used in Section 14-110(a-5) of the Code means all of the following events necessary to validate the member's eligibility for the retirement annuit…

Section 1540.405 Tier 2 Member Final Average Compensation a) For purposes of calculating the final average compensation of a retirement annuity of a Tier 2 member, the average compensation for the last 12 months shall not exceed the average compensation of the final 48 month peri…

Section 1540.406 Retirement Eligibility Criteria For Tier 2 Members Who Are Vested With Police Powers a) A Tier 2 member qualifies for a retirement annuity payable at age 55 provided that the member has attained at least 20 years of eligible creditable service for service as any …

Section 1540.410 Final Average Compensation for Certain Alternative Retirement Annuity Recipients For purposes of retirement and survivor annuities, in the case of a member who first became a member of the System prior to January 1, 1998 and who is eligible to receive an alternat…

Section 1540.415 Prohibited Transactions The payment of any type of refund or any type of accelerated pension benefit payment provided under Article 14 of the Pension Code shall not be transferred to a Roth IRA or any other type of account in which a person can receive distributi…

Section 1540.5 Introduction (Repealed) (Source: Repealed at 41 Ill. Reg. 4217, effective March 22, 2017)