Chapter 40 — PENSIONS

(40 ILCS 5/16-174) (from Ch. 108 1/2, par. 16-174) Sec. 16-174. To maintain record of proceedings, etc. To maintain a permanent record of all board proceedings, which shall be open to public inspection. (Source: P.A. 83-1440.)

(40 ILCS 5/16-175) (from Ch. 108 1/2, par. 16-175) Sec. 16-175. To make annual report. To make an annual financial report for each fiscal year ended June 30. A copy of the report shall be transmitted to the State Board of Education. The report of the retirement system shall conta…

(40 ILCS 5/16-176) (from Ch. 108 1/2, par. 16-176) Sec. 16-176. To adopt actuarial assumptions. At least once every 3 years, the actuary, as technical advisor, shall make an actuarial investigation into the mortality, service and compensation experience of the members, annuitants…

(40 ILCS 5/16-178) (from Ch. 108 1/2, par. 16-178) Sec. 16-178. To receive gifts and legacies. To receive any gifts or legacies for the benefit of the retirement system. (Source: P.A. 83-1440.)

(40 ILCS 5/16-179) (from Ch. 108 1/2, par. 16-179) Sec. 16-179. To be trustee of reserves and to invest funds. To be the trustee of the reserves created under this Article, and to invest and reinvest such reserves, subject to the requirements and restrictions set forth in Section…

(40 ILCS 5/16-179.1) (from Ch. 108 1/2, par. 16-179.1) Sec. 16-179.1. To transfer investment functions and securities. The board may, by resolution duly adopted by a majority vote of its membership, transfer to the Illinois State Board of Investment created by Article 22A, for ma…

(40 ILCS 5/16-179.2) (from Ch. 108 1/2, par. 16-179.2) Sec. 16-179.2. To Create and Maintain a Salary Reduction Plan. (1) To develop a Salary Reduction Plan for members as permitted under the relevant Sections of the Internal Revenue Code. (2) To contract with school districts an…

(40 ILCS 5/16-181) (from Ch. 108 1/2, par. 16-181) Sec. 16-181. To make deposits. To keep sufficient cash on deposit in one or more banks, savings and loan associations or trust companies, organized under the laws of the State of Illinois or of the United States, for the purpose …

(40 ILCS 5/16-181.1) (from Ch. 108 1/2, par. 16-181.1) Sec. 16-181.1. To provide office space. To rent, lease, or acquire such space as may be necessary for the proper administration of the system. (Source: P.A. 83-1440.)

(40 ILCS 5/16-181.2) (from Ch. 108 1/2, par. 16-181.2) Sec. 16-181.2. To furnish statements. To furnish annually a statement of account to each teacher. (Source: P.A. 83-1440.)

(40 ILCS 5/16-181.3) Sec. 16-181.3. To prescribe the manner of payment. To prescribe by rule the manner of repaying refunds and purchasing the various optional service credits permitted under this Article. The rules may prescribe the conditions under which installment payments or…

(40 ILCS 5/16-181.4) Sec. 16-181.4. To request information. To request such information from any member, annuitant, beneficiary, or employer as is necessary for the proper administration of the System. (Source: P.A. 99-450, eff. 8-24-15.)

(40 ILCS 5/16-182) (from Ch. 108 1/2, par. 16-182) Sec. 16-182. Members' Contribution Reserve. On July 1, 2003, the Members' Contribution Reserve is abolished and the remaining balance shall be transferred from that Reserve to the Benefit Trust Reserve. (Source: P.A. 95-331, eff.…

(40 ILCS 5/16-184) (from Ch. 108 1/2, par. 16-184) Sec. 16-184. Supplementary Annuity Reserve. On July 1, 2003, the Supplemental Annuity Reserve is abolished and any remaining balance shall be transferred from that Reserve to the Benefit Trust Reserve. (Source: P.A. 93-469, eff. …

(40 ILCS 5/16-185) (from Ch. 108 1/2, par. 16-185) Sec. 16-185. Benefit Trust Reserve. (a) On July 1, 2003, the Employer's Contribution Reserve shall be renamed the Benefit Trust Reserve. The Benefit Trust Reserve shall serve as a clearing account for income and expenses of the S…

(40 ILCS 5/16-186.3) (from Ch. 108 1/2, par. 16-186.3) Sec. 16-186.3. Reserve for minimum retirement annuity. (a) A Minimum Retirement Annuity Reserve is established for the purpose of crediting funds received and charging disbursements for minimum retirement annuity payments und…

(40 ILCS 5/16-187) (from Ch. 108 1/2, par. 16-187) Sec. 16-187. Custodian of fund - warrants and vouchers - audits. (a) The State Treasurer is ex-officio custodian of the funds of the retirement system. He or she may process payments from the funds of the system for the purposes …

(40 ILCS 5/16-188) (Section scheduled to be repealed on January 1, 2027) Sec. 16-188. Proxy voting. (a) In this Section, "fiduciary" has the meaning given to that term in Section 1-101.2. (b) Notwithstanding the Board's investment authority, and upon the affirmative vote of at le…

(40 ILCS 5/16-189) Sec. 16-189. Fiduciary report. On or before September 1, 2023, and annually thereafter, the Board shall publish its guidelines for voting proxy ballots and a detailed report on its website describing how the Board is considering sustainability factors as define…

(40 ILCS 5/16-189.1) (from Ch. 108 1/2, par. 16-189.1) Sec. 16-189.1. Benefits payable monthly. Retirement annuities and other benefits, unless otherwise specified in this Article, shall be paid in 12 monthly installments as of the first day of each month and shall cover the prec…

(40 ILCS 5/16-190) (from Ch. 108 1/2, par. 16-190) Sec. 16-190. Annuities, etc., - exempt. The right of a person to a retirement annuity or other benefit, to the return of contributions, the retirement annuity or other benefit itself, any optional benefit, any other right accrued…

(40 ILCS 5/16-190.1) (from Ch. 108 1/2, par. 16-190.1) Sec. 16-190.1. Payment of benefits on account of minors, disabled persons and others. Benefits under this Article due minors or disabled persons as defined in Section 16-140(4) may be paid (1) to any person who has legally qu…

(40 ILCS 5/16-190.5) Sec. 16-190.5. Accelerated pension benefit payment in lieu of any pension benefit. (a) As used in this Section: "Eligible person" means a person who: (1) has terminated service; (2) has accrued sufficient service credit to be eligible to receive a retirement …

(40 ILCS 5/16-190.6) Sec. 16-190.6. Accelerated pension benefit payment for a reduction in annual retirement annuity and survivor's annuity increases. (a) As used in this Section: "Accelerated pension benefit payment" means a lump sum payment equal to 70% of the difference of the…

(40 ILCS 5/16-191) (from Ch. 108 1/2, par. 16-191) Sec. 16-191. No gain or profit on investments. No trustee or employee of the board shall have any interest in the gains or profits of any investment made by the board, or as such receive any pay or emolument for his or her servic…

(40 ILCS 5/16-192) (from Ch. 108 1/2, par. 16-192) Sec. 16-192. Correction of errors. Should any change or error in the records result in any member, annuitant or beneficiary receiving from the system more or less than he or she would have been entitled to receive had the records…

(40 ILCS 5/16-193) (from Ch. 108 1/2, par. 16-193) Sec. 16-193. Retirement Systems Reciprocal Act. The "Retirement Systems Reciprocal Act", being Article 20 of this Code, as now enacted and hereafter amended, is hereby adopted and made a part of this Article. (Source: Laws 1963, …

(40 ILCS 5/16-197) (from Ch. 108 1/2, par. 16-197) Sec. 16-197. Undivided interest. All assets of the system shall be invested as one fund and no person, group of persons or entity shall have any right other than to an undivided interest in the whole, and all references to the re…

(40 ILCS 5/16-198) (from Ch. 108 1/2, par. 16-198) Sec. 16-198. Fraud. Any person, member, trustee, or employee of the board who knowingly makes any false statement or falsifies or permits to be falsified any record of this retirement system in any attempt to defraud such system …

(40 ILCS 5/16-199) (from Ch. 108 1/2, par. 16-199) Sec. 16-199. Felony conviction. None of the benefits provided for in this Article shall be paid to any person who is convicted of any felony relating to or arising out of or in connection with his or her service as a teacher. Non…

(40 ILCS 5/16-200) (from Ch. 108 1/2, par. 16-200) Sec. 16-200. Administrative review. The Administrative Review Law, and all amendments and modifications thereof, and the rules adopted pursuant thereto, shall apply to and govern all proceedings for the judicial review of final a…

(40 ILCS 5/16-201) (from Ch. 108 1/2, par. 16-201) Sec. 16-201. 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 5/16-202) (from Ch. 108 1/2, par. 16-202) Sec. 16-202. Savings clause. The repeal or amendment of any Section or provision of this Article by this amendatory Act of 1984 shall not affect or impair any pensions, benefits, rights or credits accrued or in effect prior there…

(40 ILCS 5/16-203) Sec. 16-203. Application and expiration of new benefit increases. (a) As used in this Section, "new benefit increase" means an increase in the amount of any benefit provided under this Article, or an expansion of the conditions of eligibility for any benefit un…

(40 ILCS 5/16-204) Sec. 16-204. Optional defined contribution benefit. As soon as practicable after the effective date of this amendatory Act of the 100th General Assembly, the System shall offer a defined contribution benefit to active full-time or part-time contractual members …

(40 ILCS 5/16-205) Sec. 16-205. (Repealed). (Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 100-23, eff. 7-6-17.)

(40 ILCS 5/16-206) Sec. 16-206. (Repealed). (Source: P.A. 98-599, eff. 6-1-14. Repealed by P.A. 100-23, eff. 7-6-17.)

(40 ILCS 5/17-101) (from Ch. 108 1/2, par. 17-101) Sec. 17-101. Creation of fund. In each city with a population over 500,000, there is created a Public School Teachers' Pension and Retirement Fund to be maintained and administered in the manner prescribed in this Article and to …

(40 ILCS 5/17-102) (from Ch. 108 1/2, par. 17-102) Sec. 17-102. Terms defined. The terms used in this Article shall have the meanings ascribed to them in Sections 17-103 to 17-113, inclusive, except when the context otherwise requires. (Source: Laws 1963, p. 161.)

(40 ILCS 5/17-103) (from Ch. 108 1/2, par. 17-103) Sec. 17-103. Actuarial equivalent. "Actuarial equivalent": A pension equal to the value of another sum or pension when computed according to the actuarial tables and rate of interest in use by the board. (Source: Laws 1963, p. 16…

(40 ILCS 5/17-104) (from Ch. 108 1/2, par. 17-104) Sec. 17-104. Board. "Board": Board of Trustees of the Public School Teachers' Pension and Retirement Fund of ....(city) as created in this Article. (Source: Laws 1963, p. 161.)

(40 ILCS 5/17-105) (from Ch. 108 1/2, par. 17-105) Sec. 17-105. Board of Education. "Board of Education": The Board of Education in a city in which the fund provided by this Article is maintained and operated. (Source: Laws 1963, p. 161.)

(40 ILCS 5/17-105.1) Sec. 17-105.1. Employer. "Employer": The Board of Education, a charter school as defined under the provisions of Section 27A-5 of the School Code, and a contract school operating pursuant to an agreement with the Board of Education. (Source: P.A. 102-636, eff…

(40 ILCS 5/17-106) (from Ch. 108 1/2, par. 17-106) Sec. 17-106. Contributor, member or teacher. "Contributor", "member" or "teacher": All members of the teaching force of the city, including principals, assistant principals, the general superintendent of schools, deputy superinte…

(40 ILCS 5/17-106.1) Sec. 17-106.1. Administrator. Administrator means a member who (i) is employed in a position that requires him or her to hold a professional educator license with an administrative endorsement issued by the State Board of Education, (ii) is not on the Chicago…

(40 ILCS 5/17-107) (from Ch. 108 1/2, par. 17-107) Sec. 17-107. Creditable service. "Creditable service": Service for which pension credits have not been validated concurrently with its rendition, but which may be validated for pension purposes upon compliance with the conditions…

(40 ILCS 5/17-108) (from Ch. 108 1/2, par. 17-108) Sec. 17-108. Fiscal year and school year. "Fiscal year" and "school year": Beginning July 1, 1999, the period beginning on the 1st day of July of one calendar year and ending on the 30th day of June of the next calendar year. Eac…

(40 ILCS 5/17-109) (from Ch. 108 1/2, par. 17-109) Sec. 17-109. Fund. "Fund": The Public School Teachers' Pension and Retirement Fund of ....(city). (Source: Laws 1963, p. 161.)

(40 ILCS 5/17-109.1) (from Ch. 108 1/2, par. 17-109.1) Sec. 17-109.1. Pension deferred. "Pension deferred": A pension of a sum determined on termination of service but payable upon the expiration of a fixed period of time, provided the person concerned is alive at such date. All …

(40 ILCS 5/17-109.2) (from Ch. 108 1/2, par. 17-109.2) Sec. 17-109.2. Pension pending period. "Pension pending period": The time required to process all details attendant on the granting of a pension after (1) filing an application therefor and (2) official termination of service…