Chapter 40 — PENSIONS

(40 ILCS 5/14-103.03) (from Ch. 108 1/2, par. 14-103.03) Sec. 14-103.03. Date of establishment. "Date of establishment": January 1, 1944. (Source: P.A. 80-841.)

(40 ILCS 5/14-103.04) (from Ch. 108 1/2, par. 14-103.04) Sec. 14-103.04. Department. "Department": Any department, institution, board, commission, officer, court, or any agency of the State having power to certify payrolls to the State Comptroller authorizing payments of salary o…

(40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05) Sec. 14-103.05. Employee. (a) Any person employed by a Department who receives salary for personal services rendered to the Department on a warrant issued pursuant to a payroll voucher certified by a Department and drawn by…

(40 ILCS 5/14-103.06) (from Ch. 108 1/2, par. 14-103.06) Sec. 14-103.06. Member. "Member": Any employee included in the membership of the system; and any former employee who made contributions to the system and has not received a refund and who is not receiving a retirement annui…

(40 ILCS 5/14-103.07) (from Ch. 108 1/2, par. 14-103.07) Sec. 14-103.07. Annuitant. "Annuitant": A person receiving a retirement annuity under this Article. (Source: P.A. 80-841.)

(40 ILCS 5/14-103.08) (from Ch. 108 1/2, par. 14-103.08) Sec. 14-103.08. Beneficiary. "Beneficiary": A person receiving an annuity or benefit under this Article other than a retirement annuity. (Source: P.A. 80-841.)

(40 ILCS 5/14-103.09) (from Ch. 108 1/2, par. 14-103.09) Sec. 14-103.09. Service. "Service": Service as an employee of a Department, for which compensation is paid by the State. (Source: P.A. 80-841.)

(40 ILCS 5/14-103.10) (from Ch. 108 1/2, par. 14-103.10) (Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional) Sec. 14-103.10. Compensation. (a) For periods of service prior to January 1, 1978, the full rate of salary or wages payable to an …

(40 ILCS 5/14-103.11) (from Ch. 108 1/2, par. 14-103.11) Sec. 14-103.11. Rate of Compensation. The actual rate upon which the compensation of an individual is calculated at any time as certified on a payroll. (Source: P.A. 80-841.)

(40 ILCS 5/14-103.12) (from Ch. 108 1/2, par. 14-103.12) Sec. 14-103.12. Final average compensation. (a) For retirement and survivor annuities, "final average compensation" means the monthly compensation obtained by dividing the total compensation of an employee during the period…

(40 ILCS 5/14-103.13) (from Ch. 108 1/2, par. 14-103.13) Sec. 14-103.13. Membership service. "Membership service": Service rendered while a member of the System for which credit is allowable under this Article, and for persons entering service on or after January 1, 1984, or afte…

(40 ILCS 5/14-103.14) (from Ch. 108 1/2, par. 14-103.14) Sec. 14-103.14. Prior service. "Prior service": Service rendered prior to January 1, 1944 for which credit is allowable under this Article. (Source: P.A. 80-841.)

(40 ILCS 5/14-103.15) (from Ch. 108 1/2, par. 14-103.15) Sec. 14-103.15. Creditable service. "Creditable service": Membership service and the total service certified in prior or military service certificates, if any. (Source: P.A. 80-841.)

(40 ILCS 5/14-103.16) (from Ch. 108 1/2, par. 14-103.16) Sec. 14-103.16. Military service. "Military service": Service in the United States Army, Navy, Air Force, Space Force, Marines or Coast Guard or any women's auxiliary thereof for which credit is allowed under this Article. …

(40 ILCS 5/14-103.17) (from Ch. 108 1/2, par. 14-103.17) Sec. 14-103.17. Accumulated contributions. "Accumulated contributions": The sum contributed by a member including credits granted during disability. (Source: P.A. 81-1536.)

(40 ILCS 5/14-103.18) (from Ch. 108 1/2, par. 14-103.18) Sec. 14-103.18. Annuity. "Annuity": Annual payments for life, or as otherwise provided in this Article, payable in 12 equal monthly installments during the annuity payment period. The first payment shall be made for the fir…

(40 ILCS 5/14-103.19) (from Ch. 108 1/2, par. 14-103.19) Sec. 14-103.19. Actuarial tables. "Actuarial tables": Tables of mathematical functions derived from mortality, disability and turn-over rates, combined with interest discount factors as adopted by the board on recommendatio…

(40 ILCS 5/14-103.20) (from Ch. 108 1/2, par. 14-103.20) Sec. 14-103.20. Reversionary annuity. "Reversionary annuity": A deferred annuity computed according to the actuarial tables payable to a beneficiary who survives the specified annuitant. (Source: P.A. 80-841.)

(40 ILCS 5/14-103.21) (from Ch. 108 1/2, par. 14-103.21) Sec. 14-103.21. Actuarial reserves. "Actuarial reserves": An accumulation of funds in advance of benefit payments which will be sufficient with respect to each member and his beneficiaries, if any, to pay the prescribed ben…

(40 ILCS 5/14-103.22) (from Ch. 108 1/2, par. 14-103.22) Sec. 14-103.22. Retirement. "Retirement": The acceptance of a retirement annuity. (Source: P.A. 80-841.)

(40 ILCS 5/14-103.23) (from Ch. 108 1/2, par. 14-103.23) Sec. 14-103.23. Regular interest. "Regular interest": Interest at such rate determined from the actual experience of the system as may be prescribed by the board, compounded annually. Credit for regular interest each fiscal…

(40 ILCS 5/14-103.24) (from Ch. 108 1/2, par. 14-103.24) Sec. 14-103.24. State. "State": The State of Illinois. (Source: P.A. 80-841.)

(40 ILCS 5/14-103.25) (from Ch. 108 1/2, par. 14-103.25) Sec. 14-103.25. Actuarial equivalent. "Actuarial equivalent": An annuity or benefit of equal value to the contributions plus regular interest, annuity or other benefit, when computed upon the basis of the actuarial tables i…

(40 ILCS 5/14-103.26) (from Ch. 108 1/2, par. 14-103.26) Sec. 14-103.26. Withdrawal. "Withdrawal": Severance of employment of a member as an employee of the State or of all Departments, by resignation, discharge, dismissal or layoff. (Source: P.A. 80-841.)

(40 ILCS 5/14-103.27) (from Ch. 108 1/2, par. 14-103.27) Sec. 14-103.27. Fiscal year. "Fiscal year": The period beginning on July 1 in any year and ending on June 30 of the next succeeding year. (Source: P.A. 80-841.)

(40 ILCS 5/14-103.28) (from Ch. 108 1/2, par. 14-103.28) Sec. 14-103.28. Masculine includes feminine. "Masculine includes feminine": The masculine pronoun includes the feminine pronoun. (Source: P.A. 80-841.)

(40 ILCS 5/14-103.29) (from Ch. 108 1/2, par. 14-103.29) Sec. 14-103.29. The 1943 Act. "The 1943 Act": "An Act to provide for the creation, maintenance and administration of a retirement and benefit system for certain officers and employees of the State of Illinois, their depende…

(40 ILCS 5/14-103.30) (from Ch. 108 1/2, par. 14-103.30) Sec. 14-103.30. State Universities Retirement System. "State Universities Retirement System": The system defined in Article 15 of this Code, being a continuation of the University Retirement System of Illinois. (Source: P.A…

(40 ILCS 5/14-103.31) (from Ch. 108 1/2, par. 14-103.31) Sec. 14-103.31. Teachers' Retirement System of the State of Illinois. "Teachers' Retirement System of the State of Illinois": The system defined in Article 16 of this Code. (Source: P.A. 80-841.)

(40 ILCS 5/14-103.32) (from Ch. 108 1/2, par. 14-103.32) Sec. 14-103.32. Social Security Act. "Social Security Act": The Act of Congress approved August 14, 1935, Chapter 531, 49 Stat. 620, officially cited as the "Social Security Act", as heretofore or hereafter amended. (Source…

(40 ILCS 5/14-103.33) (from Ch. 108 1/2, par. 14-103.33) Sec. 14-103.33. Federal Insurance Contribution 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…

(40 ILCS 5/14-103.34) (from Ch. 108 1/2, par. 14-103.34) Sec. 14-103.34. Social Security Enabling Act. "Social Security Enabling Act": Article 21 of the "Illinois Pension Code", approved March 18, 1963, and all amendments thereto. (Source: P.A. 80-841.)

(40 ILCS 5/14-103.35) (from Ch. 108 1/2, par. 14-103.35) Sec. 14-103.35. State Agency. "State Agency": The Social Security Unit of the State Employees' Retirement System of Illinois as defined in the Social Security Enabling Act, or any agency succeeding to the duties thereof. (S…

(40 ILCS 5/14-103.36) (from Ch. 108 1/2, par. 14-103.36) Sec. 14-103.36. Covered employee. "Covered employee": Any employee covered by coordination with the Federal Social Security Act as herein provided. (Source: P.A. 80-841.)

(40 ILCS 5/14-103.37) (from Ch. 108 1/2, par. 14-103.37) Sec. 14-103.37. Coordination. "Coordination": A plan providing for a coordination of the benefits payable by the system and the contributions to be made by the member with the old age, survivors and disability provisions of…

(40 ILCS 5/14-103.38) (from Ch. 108 1/2, par. 14-103.38) Sec. 14-103.38. Noncovered employee. "Noncovered employee": A member, either in service or on an authorized leave of absence on October 31, 1968 who elected not to accept coordination with the Federal Social Security Act as…

(40 ILCS 5/14-103.39) (from Ch. 108 1/2, par. 14-103.39) Sec. 14-103.39. "Personal services": Beginning January 1, 1978, employment by the State of Illinois for which compensation is certified by a department to the State Comptroller and paid on a regular payroll. (Source: P.A. 8…

(40 ILCS 5/14-103.40) Sec. 14-103.40. (Repealed). (Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 100-587, eff. 6-4-18.)

(40 ILCS 5/14-103.41) Sec. 14-103.41. Tier 1 member. "Tier 1 member": A member of this System who first became a member or participant before January 1, 2011 under any reciprocal retirement system or pension fund established under this Code other than a retirement system or pensi…

(40 ILCS 5/14-103.42) Sec. 14-103.42. Licensed health care professional. "Licensed health care professional": Any individual who has obtained a license through the Department of Financial and Professional Regulation under the Medical Practice Act of 1987, under the Physician Assi…

(40 ILCS 5/14-104) (from Ch. 108 1/2, par. 14-104) Sec. 14-104. Service for which contributions permitted. Contributions provided for in this Section shall cover the period of service granted. Except as otherwise provided in this Section, the contributions shall be based upon the…

(40 ILCS 5/14-104.1) (from Ch. 108 1/2, par. 14-104.1) Sec. 14-104.1. Any member who was an elected police magistrate or justice of the peace serving as a magistrate of the Circuit Court for the duration of his elected term, who has not elected coverage in a retirement system fin…

(40 ILCS 5/14-104.10) Sec. 14-104.10. Federal or out-of-state employment. A contributing employee may establish additional service credit for periods of full-time employment by the federal government or a unit of state or local government located outside Illinois for which he or …

(40 ILCS 5/14-104.11) Sec. 14-104.11. Illinois Finance Authority. An employee may establish creditable service for periods prior to the date upon which the Illinois Finance Authority first becomes a department (as defined in Section 14-103.04) during which he or she was employed …

(40 ILCS 5/14-104.12) Sec. 14-104.12. Early termination incentives under the State Finance Act. Notwithstanding any other provision of this Article and notwithstanding that they may be payable from a personal services line item, early termination incentives paid under Section 14a…

(40 ILCS 5/14-104.13) Sec. 14-104.13. Chicago Metropolitan Agency for Planning; employee election. (a) Within one year after the effective date of this Section, a person employed by the Chicago Metropolitan Agency for Planning (formerly the Regional Planning Board) on the effecti…

(40 ILCS 5/14-104.2) (from Ch. 108 1/2, par. 14-104.2) Sec. 14-104.2. Any member who participated in a voluntary furlough plan or who was subject to a 4 day work week pursuant to negotiated agreements in fiscal years 1983 and 1984 may receive service and earnings credit for such …

(40 ILCS 5/14-104.3) (from Ch. 108 1/2, par. 14-104.3) (Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional) Sec. 14-104.3. Notwithstanding provisions contained in Section 14-103.10, any person who first becomes a member before the effective…

(40 ILCS 5/14-104.4) (from Ch. 108 1/2, par. 14-104.4) Sec. 14-104.4. For purposes of this Article, the term "award for back pay under a statute" means an award, determination or agreement granted or approved by a court or administrative agency which arises under a State or feder…

(40 ILCS 5/14-104.5) (from Ch. 108 1/2, par. 14-104.5) Sec. 14-104.5. A member who enters service on or after January 1, 1984, or after July 1, 1982 as an emergency or temporary employee, as defined in Sections 8b.8 and 8b.9 of the Personnel Code, may receive membership service c…