40 ILCS 5/15-134.5
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 15 - State Universities Retirement System

Sec. 15-134.5.     Retirement program elections.(a) All participating employees are participants under the traditional  benefit package prior to January 1, 1998.Effective as of the date that an employer elects, as described in Section  15-158.2, to offer to its employees the portable benefit package and the  self-managed plan as alternatives to the traditional benefit package, each of  that employer's eligible employees (as defined in subsection (b)) shall be  given the choice to elect which retirement program he or she wishes to  participate in with respect to all periods of covered employment occurring on  and after the effective date of the employee's election.  The retirement  program election made by an eligible employee must be made in writing, in the  manner prescribed by the System, and within the time period described in  subsection (d) or (d-1).The employee election authorized by this Section is a one-time, irrevocable  election.  If an employee terminates employment after making the election  provided under this subsection (a), then upon his or her subsequent  re-employment with an employer the original election shall automatically apply  to him or her, provided that the employer is then a participating employer as  described in Section 15-158.2.An eligible employee who fails to make this election shall, by default,  participate in the traditional benefit package.(b) "Eligible employee" means an employee (as defined in Section  15-107) who is either a currently eligible employee or a newly eligible  employee.  For purposes of this Section, a "currently eligible employee"  is an employee who is employed by an employer on the effective date on which  the employer offers to its employees the portable benefit package and the  self-managed plan as alternatives to the traditional benefit package.  A "newly  eligible employee" is an employee who first becomes employed by an employer  after the effective date on which the employer offers its employees the  portable benefit package and the self-managed plan as alternatives to the  traditional benefit package.  A newly eligible employee participates in the traditional benefit package  until he or she makes an election to participate in the portable benefit  package or the self-managed plan.  If an employee does not elect to participate  in the portable benefit package or the self-managed plan, he or she shall  continue to participate in the  traditional benefit package by default.(c) An eligible employee who at the time he or she is first eligible to  make the election described in subsection (a) does not have sufficient age and  service to qualify for a retirement annuity under Section 15-135 may elect to  participate in the traditional benefit package, the portable benefit package,  or the self-managed plan.  An eligible employee who has sufficient age and  service to qualify for a retirement annuity under Section 15-135 at the time he  or she is first eligible to make the election described in subsection (a) may  elect to participate in the traditional benefit package or the portable benefit  package, but may not elect to participate in the self-managed plan.(d) A currently eligible employee must make this election within one year  after the effective date of the employer's adoption of the self-managed plan.A newly eligible employee must make this election within  6 months after the date on which the System receives the report of status  certification from the employer.  If an employee elects to participate in the self-managed plan, no employer  contributions shall be remitted to the self-managed plan when the employee's  account balance transfer is made.  Employer contributions to the self-managed  plan shall commence as of the first pay period that begins after the System  receives the employee's election.(d-1) A newly eligible employee who, prior to the effective date of this  amendatory Act of the 91st General Assembly, fails to make the election within  the period provided under subsection (d) and participates by default in the  traditional benefit package may make a late election to participate in the  portable benefit package or the self-managed plan instead of the traditional  benefit package at any time within 6 months after the effective date of this  amendatory Act of the 91st General Assembly.(e) If a currently eligible employee elects the portable benefit  package, that  election shall not become effective until the one-year anniversary of the date  on which the election is filed with the System, provided the employee remains  continuously employed by the employer throughout the one-year waiting period,  and any benefits payable to or on account of the employee before such one-year  waiting period has ended shall not be determined under the provisions  applicable to the portable benefit package but shall instead be determined in  accordance with the traditional benefit package.  If a currently  eligible employee who  has elected the portable benefit package terminates employment covered by the  System before the one-year waiting period has ended, then no  benefits shall be determined under the portable benefit package provisions  while he or she is inactive in the System and upon re-employment with an  employer covered by the System he or she shall begin a new one-year waiting  period before the provisions of the portable benefit  package become effective.(f) An eligible employee shall be provided with written information prepared  or prescribed by the System which describes the employee's retirement program  choices.  The eligible employee shall be offered an opportunity to  receive counseling from the System prior to making his or her election.  This  counseling may consist of videotaped materials, group presentations, individual  consultation with an employee or authorized representative of the System in  person or by telephone or other electronic means, or any combination of these  methods.    (Source: P.A. 90-766, eff. 8-14-98; 91-887, eff. 7-6-00.)