40 ILCS 5/8-138.4
2021 Illinois Compiled Statutes|Chapter 40 - PENSIONS|40 ILCS 5/ - Illinois Pension Code.|Article 8 - Municipal Employees', Officers', And Officials' Annuity And Benefit Fund--Cities Over 500,000 Inhabitants

Sec. 8-138.4. Early retirement incentive.(a) To be eligible for the benefits provided in this Section, an  employee must:(1) have been a contributor to the Fund who (i) on     October 15, 2003, was in active payroll status as an employee; (ii) returns to active payroll status from an approved leave of absence prior to December 15, 2003; (iii) on October 15, 2003, is receiving ordinary or duty disability benefits under Section 8-160 or 8-161; or (iv)  has been subjected to an involuntary termination or layoff by the employer and restored to service by his or her employer prior to January 31, 2004;(2) have not previously retired under this Article;(3) file with the Board on or before January 30,     2004, a written election requesting the benefits provided in this Section;(4) withdraw from service on or after January 31,     2004 and on or before February 29, 2004 (or the date established under subsection (a-5), if applicable); and(5) by the date of withdrawal or by February 29,     2004, whichever is earlier, have attained age 50 with at least 10 years of creditable service in this Fund, without including any creditable service established under this Section, and a total of at least 70 combined years of age and creditable service, without including any creditable service established under this Section, in one or more of the participating systems under the Retirement Systems Reciprocal Act.A person is not eligible for the benefits provided in this Section if the  person (i) elects to receive the alternative annuity for city officers  under Section 8-243.2, or (ii) elects to receive a retirement annuity  calculated under the alternative formula formerly set forth in Section  20-122.(a-5) To ensure that the efficient operation of employers under this Article  is not jeopardized by the simultaneous retirement of large numbers of critical  personnel, each employer may, for its critical employees, extend the February 29, 2004 deadline for terminating employment under this Article established in  subdivision (a)(4) of this Section to a date not later than May 31, 2004 by  so  notifying the Fund by January 31, 2004.(b) An eligible employee may establish up to 5 years of creditable  service under this Section, in increments of one month, by making the  contributions specified in subsection (d).  In addition, for each month of  creditable service established under this Section, a person's age at retirement  shall be deemed to be one month older than it actually is, except for  determination of eligibility for automatic annual increases under Sections  8-137 and 8-137.1. Furthermore, an eligible employee must establish at least  the amount of age and creditable service necessary to bring his or her age and  total creditable service, including service  in this Fund, service established under this Section, and service in any of the  other participating  systems under the Retirement Systems Reciprocal Act, to a minimum that will  satisfy the  requirements of Section 8-138.The creditable service under this Section may be used for all  purposes under this Article and the Retirement Systems Reciprocal Act,  except for the computation of average annual salary and the determination  of salary, earnings, or compensation under this or any other Article of  this Code.(c) An eligible employee shall be entitled to have his or her retirement  annuity calculated in accordance with the formula provided in Section  8-138, except that the annuity shall not be subject to reduction because of  withdrawal or commencement of the annuity before attainment of age 60.(d) For each month of creditable service established under this Section,  the employee must pay to the Fund an employee contribution, to be calculated  by the Fund, equal to 4.25% of the member's monthly salary rate  on October 15, 2003.  The employee may elect to pay the entire contribution  before the  retirement annuity commences, or to have it deducted from the annuity over  a period not longer than 24 months.  If the retired employee dies before the  contribution has been paid in full, the unpaid installments may be deducted  from any annuity or other benefit payable to the employee's survivors.All employee contributions paid under this Section shall not be deemed  contributions made by employees for annuity purposes under Section 8-173,  and shall be made and credited to a special reserve, without interest.  Employee contributions paid under this Section may be refunded under the  same terms and conditions as are applicable to other employee contributions  for retirement annuity.(e) Notwithstanding Section 8-165, an annuitant who reenters service under  this Article after receiving a retirement annuity based on benefits provided  under this Section thereby forfeits the right to continue to receive those  benefits, and shall have his or her retirement annuity recalculated at the  appropriate time without the benefits provided in this Section.(f) No employer action in declaring an employee to be a critical employee pursuant to subsection (a-5) shall be construed as an impairment of any pension benefit or entitlement. No early retirement option or resultant benefit conferred under this Section shall, in any manner, vest for any employee until the earlier date of the employer's decision to release the employee from service or May 31, 2004.         (Source: P.A. 93-654, eff. 1-16-04.)