Chapter 40 — PENSIONS

(40 ILCS 5/20-104) (from Ch. 108 1/2, par. 20-104) Sec. 20-104. Employee. "Employee": Any person in the service of an employer on or after the effective date, who has pension credit because of service previous or subsequent to the effective date, who is an active or inactive memb…

(40 ILCS 5/20-105) (from Ch. 108 1/2, par. 20-105) Sec. 20-105. Employer. "Employer": The State of Illinois, any agency or instrumentality thereof, or any governmental unit in the State. (Source: Laws 1963, p. 161.)

(40 ILCS 5/20-106) (from Ch. 108 1/2, par. 20-106) (Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional) Sec. 20-106. Final average salary. (a) "Final average salary": The average (or other) salary which is considered by a participating syst…

(40 ILCS 5/20-107) (from Ch. 108 1/2, par. 20-107) Sec. 20-107. Governmental unit. "Governmental unit": The State of Illinois or any agency or instrumentality thereof, or any political subdivision or municipal corporation in the State, which maintains a retirement system for the …

(40 ILCS 5/20-108) (from Ch. 108 1/2, par. 20-108) Sec. 20-108. Participating system. "Participating system": Any retirement system to which "The 1955 Act" or this Article applies. (Source: Laws 1963, p. 161.)

(40 ILCS 5/20-109) (from Ch. 108 1/2, par. 20-109) Sec. 20-109. "Pension credit": Credit or equities acquired by an employee in the form of contributions, earnings or service as defined under the law governing each of the systems in which he has credits or equities, except credit…

(40 ILCS 5/20-110) (from Ch. 108 1/2, par. 20-110) Sec. 20-110. Retirement annuity. "Retirement annuity": Any pension, retirement allowance, retirement annuity, disability pension, disability retirement allowance or disability retirement annuity, and an annuity payable on account…

(40 ILCS 5/20-111) (from Ch. 108 1/2, par. 20-111) Sec. 20-111. Retirement system. "Retirement system": Any retirement system or pension fund which has been created by statute and which is financed in whole or in part by contributions by the State or by any governmental unit of t…

(40 ILCS 5/20-112) (from Ch. 108 1/2, par. 20-112) Sec. 20-112. Survivor's annuity. "Survivor's annuity": Payments by a system which are made to the widow or survivors of an employee or participant in the form of a pension or annuity or a lump sum which, under the provisions of t…

(40 ILCS 5/20-113) (from Ch. 108 1/2, par. 20-113) Sec. 20-113. The 1955 Act. "The 1955 Act": The "Retirement Systems Reciprocal Act" approved July 11, 1955, as amended. (Source: Laws 1963, p. 161.)

(40 ILCS 5/20-114) (from Ch. 108 1/2, par. 20-114) Sec. 20-114. Benefits covered by this article. The provisions of this Article shall be applicable and limited only to a retirement annuity and survivor's annuity, and to the pension credit established for such purposes. Any death…

(40 ILCS 5/20-115) (from Ch. 108 1/2, par. 20-115) Sec. 20-115. Eligibility for a proportional annuity. Any person who has pension credit in 2 or more participating systems shall be entitled to a proportional retirement annuity, and his survivors shall be entitled to a survivors …

(40 ILCS 5/20-116) (from Ch. 108 1/2, par. 20-116) Sec. 20-116. Minimum qualifying age - Deferred payments. If the minimum qualifying age in any of the participating systems is lower than the minimum qualifying age in any other participating system which is to provide a proportio…

(40 ILCS 5/20-117) (from Ch. 108 1/2, par. 20-117) Sec. 20-117. Vesting of pension credit - Combined pension credit under all participating systems. If the vesting of pension credit in any participating system for a retirement annuity or survivor's annuity is based upon length of…

(40 ILCS 5/20-118) (from Ch. 108 1/2, par. 20-118) Sec. 20-118. Waiver of pension credits - Reinstatement. Any employee who shall have waived, by the acceptance of a refund, his pension credit in any participating system, may have his pension credit reinstated by repayment of the…

(40 ILCS 5/20-119) (from Ch. 108 1/2, par. 20-119) Sec. 20-119. Concurrent employment. Any employee who is concurrently employed by employers under 2 or more participating systems is entitled to establish pension credit in accordance with the provisions of each system. If the con…

(40 ILCS 5/20-120) (from Ch. 108 1/2, par. 20-120) Sec. 20-120. Duplication of pension credits. In no event shall pension credit for the same service rendered by an employee be accredited in more than one participating system. If employment is covered by more than one participati…

(40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121) (Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional) Sec. 20-121. Calculation of proportional retirement annuities. (a) Upon retirement of the employee, a proportional retirement annuity sh…

(40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123) (Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional) Sec. 20-123. Survivor's annuity. The provisions governing a retirement annuity shall be applicable to a survivor's annuity. Appropriate …

(40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124) (Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional) Sec. 20-124. Maximum benefits. (a) In no event shall the combined retirement or survivors annuities exceed the highest annuity which wou…

(40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125) (Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional) Sec. 20-125. Return to employment - suspension of benefits. If a retired employee returns to employment which is covered by a system fro…

(40 ILCS 5/20-126) (from Ch. 108 1/2, par. 20-126) Sec. 20-126. Responsibility of participating systems. Each participating system shall submit to the other participating systems, upon request, a report, properly certified, regarding the pension credits of each employee and any o…

(40 ILCS 5/20-127) (from Ch. 108 1/2, par. 20-127) Sec. 20-127. Responsibility of employee. It shall be the duty and responsibility of an employee having pension credit in any participating system to make available such information or any other required data relating thereto, to …

(40 ILCS 5/20-128) (from Ch. 108 1/2, par. 20-128) Sec. 20-128. Payment of benefits. Two or more participating systems may agree to have the combined benefits paid by one of the systems, in which case, the system which pays the combined benefit shall receive from the other system…

(40 ILCS 5/20-129) (from Ch. 108 1/2, par. 20-129) Sec. 20-129. Retirement systems covered by article. This Article shall apply only to those retirement systems which have accepted it, as specified in the respective divisions or Articles of this Code governing such systems. (Sour…

(40 ILCS 5/20-130) (from Ch. 108 1/2, par. 20-130) Sec. 20-130. Conflict between this Article and the Articles governing the participating systems. If any of the provisions of this Article are inconsistent with the provisions of the Article governing any participating system, the…

(40 ILCS 5/20-131) (from Ch. 108 1/2, par. 20-131) Sec. 20-131. Retirement Annuities and Survivors Annuities - Guarantees. (a) This amendatory Act of 1975 (P.A. 79-782) shall not be applied to deprive any person or his survivor of eligibility for an annuity or to reduce the annui…

(40 ILCS 5/20-132) (from Ch. 108 1/2, par. 20-132) Sec. 20-132. Short title. This Article shall be known as the "Retirement Systems Reciprocal Act" and is a continuation of the "Retirement Systems Reciprocal Act", approved July 11, 1955, as amended. (Source: Laws 1963, p. 161.)

(40 ILCS 5/20-133) (from Ch. 108 1/2, par. 20-133) Sec. 20-133. General provisions and savings clause. The provisions of Article 1 and Article 23 of this Code apply to this Article as though such provisions were fully set forth in this Article as a part thereof. (Source: Laws 196…

(40 ILCS 5/21-101) (from Ch. 108 1/2, par. 21-101) Sec. 21-101. Name of Act. This Article shall be known and may be cited as the "Social Security Enabling Act", and is a continuation of the "Social Security Enabling Act", approved August 6, 1951, as amended. (Source: P.A. 84-1028…

(40 ILCS 5/21-102) (from Ch. 108 1/2, par. 21-102) Sec. 21-102. Terms defined. For the purposes of this Article, the terms defined in the Section following this Section and preceding Section 21-103 shall have the meanings ascribed to them, except when the context otherwise requir…

(40 ILCS 5/21-102.1) (from Ch. 108 1/2, par. 21-102.1) Sec. 21-102.1. Social Security Act. "Social Security Act" means the Act of Congress approved August 14, 1935, Chapter 531, 49 Stat. 620, as heretofore or hereafter amended. (Source: P.A. 84-1028.)

(40 ILCS 5/21-102.10) (from Ch. 108 1/2, par. 21-102.10) Sec. 21-102.10. Governing body. "Governing body" means: (a) in cities, the city council; (b) in villages or incorporated towns, the board of trustees; (c) in townships, the town clerk for purposes of receiving petitions, th…

(40 ILCS 5/21-102.11) (from Ch. 108 1/2, par. 21-102.11) Sec. 21-102.11. Absolute coverage group. "Absolute coverage group" means a political subdivision that has not established a retirement system for its employees as of the time the entity enters into a coverage agreement. (So…

(40 ILCS 5/21-102.12) (from Ch. 108 1/2, par. 21-102.12) Sec. 21-102.12. "Retirement system coverage group" means a grouping of employees who are in positions covered by a public retirement system which has been placed under social security coverage by either Section 218(d)(3) or…

(40 ILCS 5/21-102.13) (from Ch. 108 1/2, par. 21-102.13) Sec. 21-102.13. Employment. "Employment" means service covered under a coverage agreement pursuant to this Article, which is performed by a person who is employed by the State or a political subdivision, or who holds an ele…

(40 ILCS 5/21-102.14) (from Ch. 108 1/2, par. 21-102.14) Sec. 21-102.14. Employee. "Employee" means any person engaged in employment. (Source: P.A. 84-1028.)

(40 ILCS 5/21-102.15) (from Ch. 108 1/2, par. 21-102.15) Sec. 21-102.15. Policeman. "Policeman" means any person who is a member of the police department of a municipality as defined in Section 3-103 of this Code or of a city subject to Article 5 of this Code, whether paid on a f…

(40 ILCS 5/21-102.16) (from Ch. 108 1/2, par. 21-102.16) Sec. 21-102.16. Fireman. "Fireman" means any member of a regularly constituted fire department of a municipality as defined in Section 4-103 of this Code, or of a city subject to Article 6 of this Code, whether paid on a fu…

(40 ILCS 5/21-102.17) (from Ch. 108 1/2, par. 21-102.17) Sec. 21-102.17. Wages. "Wages" means remuneration for employment, including the cash value of remuneration paid in any medium other than cash, but not including that part of such remuneration which would not constitute "wag…

(40 ILCS 5/21-102.18) (from Ch. 108 1/2, par. 21-102.18) Sec. 21-102.18. Mandatory medicare coverage. "Mandatory medicare coverage" means the mandatory coverage in the Federal Medicare Insurance Program of all State and local governmental personnel who are in positions not covere…

(40 ILCS 5/21-102.19) (from Ch. 108 1/2, par. 21-102.19) Sec. 21-102.19. Optional medicare coverage. "Optional medicare coverage" means coverage in the Federal Medicare Insurance Program, by means of a voluntary coverage agreement, of State or local government personnel who are i…

(40 ILCS 5/21-102.2) (from Ch. 108 1/2, par. 21-102.2) Sec. 21-102.2. Federal Insurance Contributions Act. "Federal Insurance Contributions Act" or "FICA" means Subchapters A, B and C of Chapter 21 of the Federal Internal Revenue Code of 1986, as such Code may from time to time b…

(40 ILCS 5/21-102.20) (from Ch. 108 1/2, par. 21-102.20) Sec. 21-102.20. Mandatory Social Security Coverage. "Mandatory Social Security coverage" means the coverage in the federal Social Security System that is required under Section 210 of the federal Social Security Act for cer…

(40 ILCS 5/21-102.3) (from Ch. 108 1/2, par. 21-102.3) Sec. 21-102.3. State Agency. "State Agency" means the Social Security Division of the State Employees' Retirement System of Illinois. The board of trustees of such system shall serve as the administrative body thereof, but ma…

(40 ILCS 5/21-102.4) (from Ch. 108 1/2, par. 21-102.4) Sec. 21-102.4. Secretary. "Secretary" means the Secretary of the Department of Health and Human Services, or any individual to whom the Secretary has delegated any of his functions under the Social Security Act with respect t…

(40 ILCS 5/21-102.5) (from Ch. 108 1/2, par. 21-102.5) Sec. 21-102.5. Federal-State Agreement. "Federal-State Agreement" means the agreement between the Secretary and the State of Illinois entered into by the State Agency on September 15, 1953, as authorized by the Social Securit…

(40 ILCS 5/21-102.6) (from Ch. 108 1/2, par. 21-102.6) Sec. 21-102.6. Modification to the Federal-State Agreement. "Modification to the Federal-State Agreement" means an amendment to the Federal-State Agreement to extend coverage to coverage groups or additional employee classifi…

(40 ILCS 5/21-102.7) (from Ch. 108 1/2, par. 21-102.7) Sec. 21-102.7. Coverage agreement. "Coverage agreement" means an agreement between the State Agency and a coverage group for the purpose of extending social security coverage to the employees of the coverage group. Such agree…

(40 ILCS 5/21-102.8) (from Ch. 108 1/2, par. 21-102.8) Sec. 21-102.8. Political subdivision. "Political subdivision" means any of the following: (a) a city, village, township, incorporated town or county, or a school, road, library, park, hospital or other local district with gen…