Illinois Administrative Code

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Section 1540.230 Contributions By the State (Repealed) (Source: Repealed at 8 Ill.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Section 1540.240 Actuarially Funded Basis (Repealed) (Source: Repealed at 11 Ill.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)

Section 1540.50 Credit for Service for Which Contributions are Permitted a) Exercise of Option 1) For purposes of purchasing certain service credit provided for in the Act, any member of the System as defined in such Act who meets the requirements shall be eligible to exercise an…

Section 1540.60 Severance of Employment – A Condition to the Payment of a Refund or Retirement Annuity a) Application for Refund or Retirement Annuity Any member who is eligible to receive a refund of contributions or a retirement annuity may elect to apply for that refund or ret…

Section 1540.70 Death Benefits and Survivor's Annuities a) Benefit Application Any person claiming a death benefit or survivor's annuity shall file at the Springfield Office of the System a written application for such benefit on a form prescribed by the Board. b) Proof of Death …

Section 1540.80 Disability Claims a) Nonoccupational Disability and Temporary Disability 1) Any member of the State Employees' Retirement System (SERS) claiming benefits for nonoccupational disability or temporary disability shall file at the Springfield Office of SERS a written …

Section 1540.81 Occupational Death Benefits For the purpose of determining a survivor's eligibility for occupational death benefits, a member's death shall be deemed as the proximate result of bodily injuries sustained or a hazard undergone while in the performance and within the…

Section 1540.85 Benefit Suspension and Termination for Gainful Employment or Activity a) Suspension of Benefit for Gainful Employment or Activity If the System becomes aware that a member who is receiving an occupational, nonoccupational, or temporary disability benefit under Art…

Section 1540.90 Benefit Offset a) Occupational Disability, Occupational Death, and Survivor’s annuity Any amounts received under the Workers' Compensation Act [820 ILCS 305] or the Workers' Occupational Diseases Act [820 ILCS 310] as compensation for the disability or death of a …

Section 1540.APPENDIX A Grievance Form Grievance Discrimination Based on Disability It is the policy of the State Employees' Retirement System to provide assistance in filling out this form. If assistance is needed, please ask: State Employees' Retirement System, ADA Coordinator …

Section 1540.TABLE A Optional Forms of Benefits - Basis of Computation AGE A B 1 0.000342 0.000171 2 0.000342 0.000171 3 0.000342 0.000171 4 0.000342 0.000171 5 0.000342 0.000171 6 0.000342 0.000140 7 0.000318 0.000118 8 0.000302 0.000104 9 0.000294 0.000097 10 0.000292 0.000096 …

Section 1570.10 Expenses Incurred Establishing Social Security Coverage The Social Security Unit, referred to hereafter as the "State Agency" does not assume obligation for the cost of any legal services, actuarial studies, professional consultation fees or administrative costs i…

Section 1570.100 Recovery of Administrative Expenses of the Social Security Unit a) General Conditions for Recovery of Administrative Expenses 1) Each entity electing participation in the Social Security insurance program shall reimburse the State Agency for the benefit of the St…