The Illinois Pension Code, specifically Article 2 of the Illinois Pension Code, governs the establishment and administration of retirement systems for state employees. Section 2-119 of the Pension Code outlines the process for calculating a member’s final average salary, which is a critical component in determining pension benefits. For members who have participated in the State Employees’ Retirement System (SERS) of Illinois, the final average salary is generally calculated based on the highest salary earned during any period of 4 consecutive years of creditable service within the last 10 years of creditable service. If a member has less than 4 years of creditable service, the final average salary is the total earnings divided by the number of years of creditable service. This calculation is essential for ensuring that pension benefits accurately reflect a member’s career earnings. The concept of “creditable service” itself is also fundamental, referring to periods of employment for which contributions have been made and which count towards the calculation of pension benefits. The Illinois Pension Code also addresses various aspects of benefit calculation, including the base pension rate, which is multiplied by the final average salary and the years of creditable service to arrive at the annual pension amount. The law also specifies provisions for disability pensions, survivor benefits, and early retirement options, all of which are contingent upon the accurate determination of creditable service and final average salary. Understanding the nuances of these calculations and definitions is paramount for both plan participants and administrators in Illinois.

The Illinois Pension Code, specifically Article 20 concerning the Illinois Municipal Retirement Fund (IMRF), outlines various provisions for members and employers. A critical aspect is the handling of leaves of absence and their impact on service credit. Under IMRF rules, a member on an approved leave of absence for personal reasons, if the employer continues to make contributions on behalf of the member, can have that period recognized as creditable service. However, the law also specifies that if a member is on a leave of absence for military service, that period is generally considered creditable service, provided the member returns to employment within the statutory period and makes required contributions. The question hinges on the specific treatment of a leave for elected office. Illinois law, particularly as it pertains to public employee pension systems, often distinguishes between different types of leaves. For IMRF members, a leave of absence to hold elected office, if permitted by the employer and if the member continues to make contributions to the fund, can be considered creditable service. The key is the continuation of contributions and the employer’s authorization. The Illinois Pension Code, in sections like 40 ILCS 5/7-101 and related provisions for elected officials, addresses this. If an employee of an IMRF participating municipality is elected to a full-time office within that municipality, and the municipality permits the employee to retain their employment status while serving in elected office, and the employee elects to continue making employee contributions and the employer makes its corresponding contributions, then this period is creditable service. Without these conditions met, it would not be. The scenario presented describes a member who was elected to a full-time position within their IMRF-covered employer’s jurisdiction, and the employer permitted this, with the member continuing contributions. Therefore, this period counts as creditable service.

The Illinois Pension Code, specifically Article 15, governs the State Universities Retirement System (SURS). Section 15-136.1 of the Pension Code outlines the conditions under which a member can receive a disability benefit. A member is eligible if they are unable to perform their assigned duties or any other available position with the employer, and this inability is expected to be permanent or of indefinite duration. The benefit amount is calculated based on the member’s credited service and their final rate of salary. For a member with 10 years of credited service and a final rate of salary of \$70,000, the disability benefit would be 50% of their final rate of salary. Therefore, the annual disability benefit is \(0.50 \times \$70,000 = \$35,000\). This benefit is payable until the member reaches the age of normal retirement, at which point it converts to a retirement annuity. The calculation of the disability benefit is a key aspect of understanding employee protections under the Illinois Pension Code for state university employees.

The Illinois Pension Code, specifically Article 1, Section 1-101, defines “Annuitant” as any person who is receiving or entitled to receive a pension or annuity from a retirement system established under this Code. The question presents a scenario involving Ms. Anya Sharma, a former employee of the Illinois State Board of Education, who has retired and is now receiving a monthly pension. This aligns directly with the statutory definition of an annuitant. The other options are incorrect because they describe different statuses or individuals within the pension system. A “contributor” is an active member making contributions, an “eligible survivor” is someone entitled to benefits upon the death of a member or annuitant, and a “vested member” has met the service credit requirements for a future pension but has not yet begun receiving payments. Ms. Sharma’s current status of actively receiving pension payments places her squarely in the category of an annuitant as defined by Illinois law.

The Illinois Pension Code, specifically Article 20 concerning the State Employees’ Retirement System (SERS), outlines the requirements for disability benefits. A member is generally eligible for ordinary disability benefits if they have at least five years of creditable service and are unable to perform their assigned duties due to a mental or physical disability. The condition must be permanent in nature or of indefinite duration. The application process involves submitting a disability application, medical reports from attending physicians, and potentially an examination by a physician designated by the system. The system then reviews these documents to determine if the statutory criteria are met. The benefit amount is typically 50% of the member’s final average salary, provided it does not exceed the amount of service retirement annuity they would have received if they had continued in service until the earliest age at which they could have retired on a service retirement annuity. This question tests the understanding of the minimum service requirement for ordinary disability benefits under Illinois law for state employees.

The Illinois Pension Code, specifically Article 20, governs the creation and administration of retirement systems for public employees. Section 20-109 of the Pension Code addresses the establishment of a board of trustees for each retirement system. This board is responsible for the management and control of the system’s assets and operations. The composition of the board typically includes members elected by active and retired participants, as well as appointed officials or members representing the state or employer. The specific number of trustees and their selection methods are detailed within the Pension Code for each respective system, such as the State Employees’ Retirement System (SERS), the Teachers’ Retirement System (TRS), and the General Assembly Retirement System (GARS). The primary duty of the board is to ensure the financial solvency and proper administration of the pension plan in accordance with the Illinois Pension Code and other applicable laws. This includes making investment decisions, approving benefit claims, and establishing rules and regulations for the system’s operation.

The Illinois Pension Code, specifically Article 15, governs the State Universities Retirement System (SURS). Section 15-107 defines a “participating employee” for SURS. This definition is crucial for determining who is eligible for benefits and contributions. A key aspect of this definition involves the nature of employment and the expected duration. Generally, individuals appointed to a position requiring service for at least one-half of the normal working period in the relevant fiscal year, and who are expected to continue in such service for at least one year, are considered participating employees. This includes individuals holding academic positions, administrative positions, and certain other staff roles within state universities and related entities in Illinois. The intent is to cover those in regular, ongoing employment relationships, rather than temporary or intermittent workers. The specific criteria aim to differentiate between career-oriented employment and short-term assignments. The Illinois Pension Code is the primary statutory authority for the administration and funding of public employee pension plans in Illinois, including SURS, and adherence to its definitions is fundamental for proper plan operation and compliance.

The Illinois Pension Code, specifically Article 1, Section 1-101, defines “service credit” as the period of employment for which contributions are made by or on behalf of a member and the employer, and which is recognized for the purpose of calculating retirement benefits. For the Teachers’ Retirement System of the State of Illinois (TRS), service credit is primarily earned through active participation and contributions. However, the Pension Code also allows for the purchase of certain types of “non-contributory” service credit under specific circumstances. These circumstances often involve periods of employment that would otherwise not be recognized, such as certain leaves of absence, or periods of service with other governmental entities that can be reciprocal. The ability to purchase such credit is governed by strict rules and requires the member to make a payment to the system, typically calculated based on the member’s salary and the system’s actuarial assumptions at the time of purchase, to cover the unfunded liability associated with that service. The question probes the understanding of what constitutes service credit within the Illinois pension framework, particularly the nuances of how it is earned and potentially acquired through purchase, distinguishing it from mere employment duration. The core concept is that service credit is tied to contributions and recognition by the system, not just time spent employed.

The Illinois Pension Code, specifically Article 20, governs the establishment and administration of pension funds for municipal employees in Illinois. Section 20-101 defines “Employee” broadly to include any person in the service of a municipality, including elected officials and appointed officers, who are paid a salary from municipal funds and are required to contribute to the fund. The critical element for inclusion is the nature of the service and the source of compensation. An individual who is a statutory officer of a municipality and receives a salary paid directly from the municipal treasury, and who is required by law to contribute to the Municipal Employees’ Annuity and Benefit Fund of Illinois, is considered an employee for pension purposes under Article 20. This inclusion is irrespective of whether the individual also holds other positions or has other sources of income, as long as the primary service to the municipality meets the statutory criteria. The question hinges on whether the statutory officer’s role and compensation align with the definition of an employee as stipulated in the Illinois Pension Code for pension fund participation. The specific mention of being a statutory officer and receiving a salary from the municipal treasury directly implicates the provisions of Article 20.

The Illinois Pension Code, specifically Article 20, outlines the provisions for the Illinois Municipal Retirement Fund (IMRF). Section 20-107 of the Illinois Pension Code establishes the concept of “creditable service” for participating employees. Creditable service is crucial for calculating retirement annuities. It generally includes periods of service for which contributions have been made. However, the law also addresses situations where employees might have prior service with other governmental entities within Illinois that are also participating in IMRF or other reciprocal retirement systems. The Illinois Pension Code, through its reciprocal provisions (often found in Article 20), allows for the aggregation of service from different Illinois public employment systems under certain conditions. This is designed to prevent individuals from losing pension benefits when they move between different governmental units within the state. For a participant to receive credit for prior service with another participating municipality under IMRF, specific conditions must be met. These typically involve the employee making a contribution to the fund for the period of prior service, calculated according to statutory formulas, and often requiring that the employee was not receiving a pension from the prior system at the time of transfer. The specific calculation for the employee’s contribution for prior service is generally based on the employee’s salary during the prior service period and the contribution rates in effect at that time, plus interest. In this scenario, the employee’s prior service with the Village of Elmwood Park is with an entity that is a participating municipality under IMRF. Therefore, to obtain creditable service for this period, the employee must make a contribution to IMRF. This contribution is calculated as the amount the employee *would have contributed* had they been a participant in IMRF during that period, plus accumulated interest. The Illinois Pension Code specifies that this contribution is based on the employee’s salary during the period of prior service and the employee contribution rate applicable at that time, compounded annually at the statutory interest rate. The statutory interest rate for such contributions is typically set by the Illinois Pension Code and can be subject to change. For the purpose of this question, we assume the statutory interest rate for prior service contributions is 5% compounded annually. Calculation: Employee’s salary during prior service: $30,000 per year for 5 years. Employee contribution rate for IMRF during that period: 8.5%. Statutory interest rate for prior service contributions: 5% compounded annually. Year 1 contribution: $30,000 * 0.085 = $2,550. End of Year 1 balance: $2,550 * (1 + 0.05) = $2,677.50. Year 2 contribution: $30,000 * 0.085 = $2,550. End of Year 2 balance: ($2,677.50 + $2,550) * (1 + 0.05) = $5,227.50 * 1.05 = $5,488.88. Year 3 contribution: $30,000 * 0.085 = $2,550. End of Year 3 balance: ($5,488.88 + $2,550) * (1 + 0.05) = $7,988.88 * 1.05 = $8,388.32. Year 4 contribution: $30,000 * 0.085 = $2,550. End of Year 4 balance: ($8,388.32 + $2,550) * (1 + 0.05) = $10,938.32 * 1.05 = $11,485.24. Year 5 contribution: $30,000 * 0.085 = $2,550. End of Year 5 balance: ($11,485.24 + $2,550) * (1 + 0.05) = $14,035.24 * 1.05 = $14,736.99. The total employee contribution required, including interest, is $14,736.99. This represents the amount the employee must pay to IMRF to receive credit for the five years of service with the Village of Elmwood Park, assuming no prior pension was received from that service and all other statutory requirements are met. This calculation is based on the principles of compounding interest on each year’s notional contribution.

The scenario involves a municipal employee in Illinois who elected to participate in a defined benefit pension plan. The question hinges on understanding the permissible reasons for a refund of contributions upon termination of service. Illinois Pension Code, specifically Article 5 (Illinois Pension Code, 40 ILCS 5/5-101 et seq.), governs these public employee pension systems. A refund of contributions is generally permitted when an employee leaves service and is not eligible for a pension benefit. However, if the employee has accrued sufficient creditable service to qualify for a pension benefit, they are typically not entitled to a refund of their contributions; instead, they would be entitled to a deferred pension benefit. The Illinois Pension Code outlines specific conditions for refunds, which are primarily for those who have not met the minimum service requirements for a pension. For instance, under Article 5, an employee who has not attained at least 8 years of creditable service, and is not eligible for a pension, may elect to receive a refund of their contributions plus any applicable interest. If the employee has accrued 8 or more years of creditable service, they are vested and generally cannot take a refund but must wait until retirement age to receive a pension. Therefore, if Ms. Albright has accrued 10 years of creditable service, she has met the vesting requirement for a pension benefit and is not eligible for a refund of her contributions. She would instead be entitled to a deferred annuity commencing at a future date as per the plan’s provisions.

The Illinois Pension Code, specifically Article 20, governs the creation and administration of pension funds for various public employee groups. Section 20-101 defines “covered employees” as individuals employed by the State of Illinois or any participating instrumentality thereof, who are paid from State treasury funds or funds of a participating instrumentality, and who are not eligible for participation in any other State-administered retirement system. The core principle tested here is the scope of coverage under the Illinois Pension Code for state employees. A critical aspect is distinguishing between those directly paid from the State treasury and those paid from other sources, even if employed by a state entity. For instance, employees of certain universities or quasi-governmental agencies might be covered by separate retirement systems or have different funding mechanisms that place them outside the direct purview of the general State employees’ retirement system as defined by Article 20. The question hinges on the precise wording of “paid from State treasury funds or funds of a participating instrumentality” and the exclusion of those in other State-administered systems. Understanding the definition of a “participating instrumentality” and the conditions for eligibility are paramount. The Illinois Pension Code is designed to consolidate retirement benefits for a broad range of state workers, but specific exclusions and definitions ensure that individuals covered by alternative, state-sanctioned retirement plans are not doubly covered. Therefore, an employee of a state agency whose salary is paid from a federal grant administered by the agency, and who is not eligible for any other state-administered retirement system, would still fall under the general definition of a covered employee if the agency itself is considered a participating instrumentality and the grant funds are managed through the state treasury system for payroll purposes. However, if the federal grant funds are managed entirely outside the state treasury and the employee’s compensation is solely derived from these external funds without being channeled through the state treasury, it could create ambiguity or exclusion depending on specific statutory interpretations and agency agreements. The question focuses on the primary funding source and the employee’s eligibility within the broader state system.

The Illinois Pension Code, specifically Article 15, governs the State Universities Retirement System (SURS). Section 15-136.1 of the Pension Code outlines the requirements for a participant to qualify for a disability retirement annuity. This section establishes that a participant must have at least eight years of creditable service and be unable to engage in any gainful occupation due to a disabling condition. The disabling condition must be certified by at least two physicians, and the participant must be under age 60 at the time of application. The law also requires that the disability must have occurred while the participant was in service. The analysis of the scenario presented demonstrates that Mr. Abernathy, a SURS participant, has 15 years of creditable service and is 55 years old. He has a certified disabling condition preventing him from performing his university duties. Crucially, the condition arose during his employment. Therefore, he meets all the statutory criteria for a disability retirement annuity under Article 15 of the Illinois Pension Code. The other options are incorrect because they either misstate the service requirement, the age limit, or the necessity of the disability occurring while in service. For instance, requiring ten years of service is incorrect, as is suggesting the disability must occur after age 60, or that the participant must be unable to perform any occupation whatsoever globally, rather than their university duties which is the context of the SURS system.

The scenario describes a situation involving a potential violation of the Illinois Pension Code concerning the crediting of service for an employee of a downstate municipal retirement system. Specifically, the question probes the understanding of the permissible methods for crediting service under such systems. The Illinois Pension Code, particularly provisions related to service credit, outlines strict guidelines to prevent improper augmentation of pension benefits. Article 7 of the Illinois Pension Code governs downstate municipal retirement systems. Section 7-139 details the requirements for service credit. Generally, service credit is earned through actual employment and contributions. However, certain provisions allow for the purchase of service credit under specific circumstances, such as periods of military service or certain leaves of absence, provided statutory conditions and contribution requirements are met. The core principle is that service credit must be earned through bona fide employment and contributions, or purchased in a manner explicitly authorized by law. In this case, the employee is seeking credit for a period where they were not actively employed and did not make contributions, nor is the period described as a statutorily permissible purchase of service. Therefore, crediting this period would likely contravene the principles of earned service credit and could be considered an unlawful enhancement of pension benefits under Illinois law. The Illinois Pension Code emphasizes that pension benefits are based on creditable service earned through actual service and contributions, or through statutorily defined purchase provisions. Absent a specific statutory authorization for purchasing service for a period of non-employment without contributions, such crediting would be impermissible.

The Illinois Pension Code, specifically Article 16, governs the State Universities Retirement System (SURS). Section 16-135 of the Pension Code outlines the calculation of a participant’s final rate of creditable earnings. This rate is determined by averaging the participant’s earnings for the highest 48 consecutive months of service within the last 10 years of credited service. If a participant has less than 48 months of service, the average is calculated based on the total months of service. The calculation involves summing the earnings for the qualifying 48 months and dividing by 48. For example, if a participant earned $60,000 in month 1, $62,000 in month 2, …, $70,000 in month 48, the sum of these earnings would be divided by 48 to arrive at the final rate of creditable earnings. This rate is a critical component in the pension benefit formula, which typically involves multiplying the final rate of creditable earnings by the years of credited service and a statutory multiplier. Understanding this calculation is fundamental to determining pension eligibility and benefit amounts under Illinois law for university employees. The concept of “consecutive months” and the “last 10 years” are crucial limitations.

The scenario presented involves a former Illinois public employee who participated in a defined benefit pension plan. The core issue is the treatment of a refund of contributions received by the employee upon separation from service before meeting the minimum service credit requirements for an annuity. Under the Illinois Pension Code, specifically concerning the Illinois Pension Code, Article 2, Section 2-116, when a member receives a refund of their contributions upon leaving service, they forfeit all accrued rights and benefits under the pension system. This forfeiture is absolute unless the member later re-enters service and repays the refund with interest, thereby restoring their prior service credit. The question probes the consequence of receiving such a refund without subsequent re-entry and repayment. The Illinois Pension Code is designed to ensure that benefits are earned through continued service and that refunds represent a complete termination of rights for that period of service. Therefore, a former employee who took a refund and did not re-enter service or repay the refund cannot claim any pension benefits based on the service period for which the refund was taken. The Illinois Pension Code’s provisions on refunds are clear about the forfeiture of rights. The calculation is conceptual: if a refund is taken, service credit is forfeited. If service credit is forfeited, no annuity can be calculated based on that service. Thus, the resulting pension benefit for that period is zero.

The Illinois Pension Code, specifically Article 15, governs the State Universities Retirement System (SURS). Section 15-107 of the Pension Code defines “credited service” for the purpose of calculating retirement annuities. Credited service includes periods of active service for which contributions are made, as well as certain periods of authorized leave of absence for which contributions are made or for which contributions are waived under specific circumstances. It also encompasses periods of disability for which disability benefits are received. Crucially, for purposes of calculating a retirement annuity, only service for which contributions have been made to the system is typically considered. However, the law allows for the purchase of service credit for certain periods of prior service, such as military service or service with other Illinois public employee retirement systems, under specific conditions and payment provisions. The question asks about the maximum creditable service for calculating a retirement annuity under SURS. While an individual might have accumulated many years of employment, the actual creditable service for annuity calculation is capped by the statutory definitions and purchase provisions. The Illinois Pension Code does not impose a universal maximum number of years of service that can be credited for annuity calculation purposes, beyond the total duration of an individual’s eligible employment and purchased service. Therefore, the maximum creditable service is limited by the actual period of service rendered and any eligible prior service that has been purchased according to the provisions of Article 15. The concept of a fixed numerical cap on creditable service, irrespective of actual service rendered and purchased, is not a feature of the SURS system as defined in the Pension Code.

The Illinois Pension Code, specifically Article 2 of the Illinois Pension Code, outlines the framework for the Illinois Municipal Retirement Fund (IMRF). Section 5/2-116.1 of the Pension Code addresses the crediting of service for individuals who have participated in another governmental retirement system. When a member of IMRF has previously participated in another qualified governmental retirement system in Illinois, and that system is not covered by a reciprocal agreement under Article 20 of the Pension Code, the member may elect to have their prior service credited to their IMRF account. This crediting is contingent upon the member making a full refund of contributions and interest from the prior system to IMRF. The amount to be refunded to IMRF is calculated based on the member’s contributions to the prior system, plus interest. The Pension Code specifies that the interest rate used for this calculation is the same rate applied to contributions in the prior system, or if not specified, the IMRF rate. This provision ensures that a member does not receive a double benefit for the same period of service. The core principle is that the member must effectively “transfer” their benefit accrual by refunding their prior service contributions and interest to the new system to gain credit. This process is distinct from reciprocal agreements, which establish a direct transfer of service credit without requiring a refund. Therefore, the correct action involves the refund of prior service contributions and interest to IMRF.

The Illinois Pension Code, specifically Article 20, outlines the requirements for a participant to qualify for a disability retirement annuity. For a participant in a retirement system established under the Illinois Pension Code, such as the State Employees’ Retirement System (SERS) or the Teachers’ Retirement System (TRS), to receive a disability retirement annuity, they must meet specific criteria. One critical criterion, as defined in Section 20-125 of the Illinois Pension Code, is that the applicant must have rendered at least five years of creditable service. This service requirement is a foundational eligibility threshold for disability benefits, irrespective of the severity of the disability or the participant’s age at the time of disability. The law mandates this minimum period of service to ensure that disability annuities are provided to those who have demonstrated a substantial commitment to public service in Illinois, thereby contributing to the long-term financial stability and actuarial soundness of the pension systems. Other factors, such as the nature of the disability and its impact on the ability to perform one’s duties, are assessed by the respective retirement boards, but the five-year service requirement is a non-negotiable prerequisite.

The Illinois Pension Code, specifically Article 15, governs the State Universities Retirement System (SURS). Under Section 15-113.7, a member who leaves SURS-covered employment before becoming eligible for a retirement annuity may elect to receive a refund of their accumulated contributions. This refund, however, is subject to forfeiture of service credit if the member does not repay the refund with interest upon returning to SURS-covered employment. The interest rate for repayment is prescribed by the SURS Board of Trustees, typically a market-based rate designed to make the system whole for the lost investment period. The law distinguishes between a refund of contributions and a deferred annuity. A refund is a return of the member’s own contributions plus any accumulated interest credited to their account, while a deferred annuity is a future pension benefit that vests upon meeting specific service and age requirements. Receiving a refund typically terminates all rights to future benefits from that period of service unless the refund is repaid. The concept of “vesting” is crucial here; in Illinois, for SURS, vesting generally occurs after five years of creditable service. A refund is a payout option for those who have not yet vested or who choose to forfeit their vested rights for immediate liquidity. The interest rate for repayment is not a fixed statutory percentage but is determined by the Board to reflect current economic conditions and ensure actuarial soundness.

The Illinois Pension Code, specifically Article 20, governs the administration and operation of the Illinois Municipal Retirement Fund (IMRF). Section 20-116 of the Pension Code outlines the requirements for a municipality to participate in the IMRF. For a municipality to establish participation, it must adopt an ordinance by a majority vote of its corporate authorities. This ordinance must specify the date from which participation is to be effective and the class or classes of employees to be included. Crucially, the municipality must then certify to the board of trustees of the IMRF that the ordinance has been adopted and provide a list of the employees included. The board of trustees then reviews this submission. If the submission meets the statutory requirements, the board formally approves the municipality’s participation. This process ensures that all legal prerequisites are met before a municipality and its employees become part of the IMRF system, thereby guaranteeing the integrity and proper functioning of the statewide retirement system for municipal employees in Illinois. The effective date of participation is determined by the ordinance and the subsequent approval by the IMRF board.

The scenario describes a situation involving a public employee in Illinois who has accrued service credit from two different state-funded retirement systems: the State Universities Retirement System (SURS) and the Illinois Municipal Retirement Fund (IMRF). The core issue is the potential for “double dipping” or receiving benefits from multiple systems for the same period of service, which is generally prohibited under Illinois pension law to prevent undue financial burden on the state’s retirement systems and to ensure actuarial soundness. The Illinois Pension Code, specifically provisions related to reciprocal credit and limitations on concurrent benefit accrual, governs such situations. When a member has service in more than one reciprocal system, they typically must choose which system will provide the primary benefit, or the systems will coordinate to ensure no duplication of service credit for the same time period. The principle of reciprocity allows members to combine service from different systems under certain conditions, but it does not permit receiving full, independent benefits from each system for overlapping service. The Public Pension Rule of 80, while a factor in calculating benefit eligibility and amounts, is not the primary determinant of whether overlapping service credit can be used in two separate systems for full benefit accrual. The question tests the understanding of how Illinois law prevents duplicate service credit accrual for the same period of employment across different state-administered retirement systems. The correct approach is to recognize that the law mandates coordination between systems to avoid such duplication, thereby preventing the accrual of concurrent full service credit.

The Illinois Pension Code, specifically Article 1, Section 1-101.1 (40 ILCS 5/1-101.1), defines “Public Employee” broadly to include individuals employed by the state or its political subdivisions who are compensated from public funds. This definition is crucial for determining eligibility for participation in state-sponsored retirement systems. The statute further clarifies that certain categories of individuals, such as independent contractors or those compensated solely by federal funds, may be excluded. The question hinges on understanding the scope of this definition as it applies to a specific employment arrangement within Illinois. The scenario presents a consultant providing services to a city, which is a political subdivision of Illinois. The consultant is paid from the city’s general fund, which is derived from public moneys. This payment structure, along with the nature of the services provided (which appear to be integral to the city’s operations rather than an isolated project), strongly suggests the consultant falls under the statutory definition of a public employee for pension purposes, unless specific exclusions within the Pension Code apply, which are not indicated in the provided facts. The key is that compensation is from public funds and the entity is a governmental unit. The definition is inclusive of those rendering services for a governmental unit and paid from public funds.

The scenario presented involves a municipal employee in Illinois who has accrued a significant amount of service credit in the Illinois Municipal Retirement Fund (IMRF). The core issue is determining the implications of accepting employment with another governmental entity in Illinois that also participates in IMRF, specifically regarding the aggregation of service credit and potential benefit calculations. Under the Illinois Pension Code, specifically Article 7, Division 3, which governs the IMRF, a member generally cannot receive credit for the same period of service in more than one pension fund or system in Illinois. However, the law allows for the aggregation of service credit from different Illinois governmental units that are participants in IMRF or other reciprocal retirement systems, provided certain conditions are met. The critical factor here is whether the new employment is with a participating IMRF employer or another system with a reciprocal agreement with IMRF. If both employers are IMRF participants, the service is typically considered continuous for the purpose of calculating a single IMRF benefit, without requiring a separate application or transfer of funds, as long as the employee continues to participate in IMRF. The benefit calculation will be based on the member’s final average salary and the service credit accumulated across all IMRF-covered employment. The Illinois Pension Code, particularly provisions related to reciprocal credit, dictates that a member who moves from one covered employment to another covered employment without a break in service, or with a permissible break, can have their service aggregated. This aggregation ensures that a more robust retirement benefit is provided, reflecting the total years of public service within the IMRF system. The employee’s continued participation in IMRF with the new employer is key.

The Illinois Pension Code, specifically Article 20, addresses the establishment and operation of pension funds for various public employee groups. When a municipality annexes territory containing employees who are members of a different retirement system, the Pension Code dictates a process for integrating these members. Section 20-122 of the Illinois Pension Code outlines the procedure for transferring members and assets when a municipality that is a participating municipality in one retirement system annexes territory that is part of a municipality participating in another retirement system. The core principle is to ensure that the pension rights and accrued benefits of the transferred employees are preserved. This often involves a transfer of assets and liabilities between the respective pension funds. The law prioritizes the continuation of benefits and requires a formal agreement between the pension boards involved, subject to the approval of the Illinois Department of Insurance. The process is designed to prevent any disruption to the pension rights of the affected employees, ensuring continuity of service credit and benefit accrual under the new system, or a method that provides equivalent protection. The key is the statutory mandate to protect accrued pension benefits, which is a fundamental aspect of public pension law in Illinois.

The Illinois Pension Code, specifically Article 20, governs the establishment and administration of pension funds for state employees. When a state employee leaves service before meeting the minimum age and service requirements for a retirement annuity, they are generally entitled to a refund of their contributions. The Illinois Pension Code outlines the specific conditions and calculations for these refunds. For a refund of contributions, the employee must have less than 8 years of credited service and not be eligible for a retirement annuity. The refund typically includes the employee’s contributions plus any accumulated interest. The interest rate applied to refunds is generally specified by statute. In this scenario, given that Mr. Arrington has 5 years of service and has not reached the minimum age for retirement, he is eligible for a refund of his contributions. The Illinois Pension Code, specifically provisions related to refunds of contributions for members who leave service before meeting eligibility for retirement, dictates that such members are entitled to receive their accumulated contributions. The calculation of the refund amount involves the employee’s contributions and any statutory interest. The Illinois Pension Code sets forth the interest accrual rules. For a refund of contributions, the member receives their own contributions plus interest as provided by law. The specific interest rate for refunds is detailed within the Pension Code, and it is applied to the member’s contributions. The Pension Code specifies that members who terminate service without qualifying for a retirement annuity are entitled to a refund of their contributions, including interest. The rate of interest is determined by the Illinois Pension Code.

The scenario involves a public employee in Illinois who participated in a defined benefit pension plan. The core issue is determining the impact of a period of service purchased by the employee on their final average salary calculation for pension purposes, specifically under Illinois Pension Code provisions. The Illinois Pension Code, specifically concerning the calculation of “final average compensation” for retirement annuities, typically considers the highest average compensation for a specified period of consecutive months within the last ten years of service. When a member purchases service credit, the cost is usually based on the employee’s salary at the time of purchase and the actuarial cost to the system. The purchase of service credit, if it represents a period of prior eligible service, is integrated into the member’s credited service history. The final average salary calculation, as defined by statute, is crucial. For many Illinois public employee pension funds, this is the highest average monthly salary earned by the member during any period of 48 consecutive months of creditable service within the last 10 years of creditable service. The purchase of service credit does not retroactively alter the salary earned during the original service periods. Therefore, the salary earned during the purchased service period, if it occurred earlier in the member’s career, would not directly increase the average salary in the final 48 months unless that purchased service period *also* fell within the member’s highest earning years that are used for the final average calculation. The key is that the purchased service adds to the *duration* of credited service, not necessarily the *salary base* used for the final average calculation, unless the purchased service was for a period that would have been part of the member’s highest earning years and is now being recognized. In this specific case, the purchase of service for a period when the employee was on unpaid leave and earned no salary means this purchased service, while adding to the length of service, contributes zero salary to the final average salary calculation. The final average salary is determined by the highest average salary over 48 consecutive months of *actual earnings* within the last 10 years of creditable service. A period of unpaid leave, even if service credit is purchased for it, does not represent actual earnings and thus does not inflate the final average salary. The calculation would therefore rely on the salary earned during the actual working periods that fall within the highest 48 consecutive months of service.

The Illinois Pension Code, specifically Article 20, establishes the framework for public employee pension funds. Section 20-101 defines “credited service” as the aggregate of periods of service for which an employee receives credit under the provisions of a retirement system. Section 20-113 of the Pension Code addresses the calculation of benefits, often involving a formula that multiplies final average compensation by a service credit multiplier and a percentage based on years of service. When a member of the State Employees’ Retirement System (SERS) in Illinois terminates employment and later returns, the treatment of their prior credited service for benefit calculation purposes is governed by specific provisions within the Pension Code and SERS administrative rules. If a member is receiving a retirement annuity and then returns to covered employment, their annuity is typically suspended, not recalculated based on new service unless specific re-employment provisions are met. The question pertains to a member who is already receiving a retirement annuity and then re-enters service. Under Illinois law, a retiree who returns to employment covered by the same retirement system generally has their annuity suspended for the duration of their re-employment. They do not typically receive a new, separate annuity or a recalculation of their original annuity based on the new service while the original annuity is in pay status. Instead, they may accrue additional service credit for the period of re-employment, which would then be factored into a *new* annuity calculation if they retire again after the re-employment period. However, the existing annuity is suspended. Therefore, the member’s original annuity would be suspended, and they would not be eligible to receive both the original annuity and a new annuity based on the subsequent service concurrently. The concept of “double-dipping” is generally prohibited or heavily restricted, and the law focuses on the suspension of benefits during re-employment with the same system.

The Illinois Pension Code, specifically Article 7, governs the State Employees’ Retirement System (SERS). Section 7-139.1 addresses the calculation of a survivor’s annuity for a deceased member. The formula involves a percentage of the member’s final average compensation, dependent on the number of eligible children. For a member with two eligible children, the annuity is calculated as 60% of the final average compensation. If the member’s final average compensation was \$80,000, then the survivor’s annuity for two children would be 0.60 * \$80,000 = \$48,000. This annuity is then divided equally among the eligible children. Therefore, each child would receive \$48,000 / 2 = \$24,000 annually. The law specifies that the annuity for a surviving spouse and children is a combined benefit, not separate payments, and is subject to certain limitations, such as not exceeding the member’s own annuity. However, the question specifically asks for the annual annuity per child based on the provided formula and compensation.

The Illinois Pension Code, specifically Article 16, governs the State Universities Retirement System (SURS). Section 16-133.3 of the Pension Code addresses the calculation of a member’s final average salary for retirement annuity purposes. This section states that the final average salary is the average of the highest creditable earnings for any 48 consecutive months within the last 10 years of credited service. If a member has less than 48 months of service, the final average salary is the total creditable earnings divided by the number of months of service. In this scenario, Ms. Anya Sharma has 60 months of credited service. Her creditable earnings over this period are provided. To determine her final average salary, we need to identify the 48 consecutive months with the highest earnings and then calculate the average of those earnings. Assuming Ms. Sharma’s monthly earnings over her 60 months of service are as follows: Month 1: $6,000 Month 2: $6,100 Month 3: $6,200 Month 4: $6,300 Month 5: $6,400 Month 6: $6,500 Month 7: $6,600 Month 8: $6,700 Month 9: $6,800 Month 10: $6,900 Month 11: $7,000 Month 12: $7,100 Month 13: $7,200 Month 14: $7,300 Month 15: $7,400 Month 16: $7,500 Month 17: $7,600 Month 18: $7,700 Month 19: $7,800 Month 20: $7,900 Month 21: $8,000 Month 22: $8,100 Month 23: $8,200 Month 24: $8,300 Month 25: $8,400 Month 26: $8,500 Month 27: $8,600 Month 28: $8,700 Month 29: $8,800 Month 30: $8,900 Month 31: $9,000 Month 32: $9,100 Month 33: $9,200 Month 34: $9,300 Month 35: $9,400 Month 36: $9,500 Month 37: $9,600 Month 38: $9,700 Month 39: $9,800 Month 40: $9,900 Month 41: $10,000 Month 42: $10,100 Month 43: $10,200 Month 44: $10,300 Month 45: $10,400 Month 46: $10,500 Month 47: $10,600 Month 48: $10,700 Month 49: $10,800 Month 50: $10,900 Month 51: $11,000 Month 52: $11,100 Month 53: $11,200 Month 54: $11,300 Month 55: $11,400 Month 56: $11,500 Month 57: $11,600 Month 58: $11,700 Month 59: $11,800 Month 60: $11,900 The highest 48 consecutive months of earnings are from Month 13 through Month 60. Sum of earnings from Month 13 to Month 60: (7,200 + 7,300 + 7,400 + 7,500 + 7,600 + 7,700 + 7,800 + 7,900 + 8,000 + 8,100 + 8,200 + 8,300 + 8,400 + 8,500 + 8,600 + 8,700 + 8,800 + 8,900 + 9,000 + 9,100 + 9,200 + 9,300 + 9,400 + 9,500 + 9,600 + 9,700 + 9,800 + 9,900 + 10,000 + 10,100 + 10,200 + 10,300 + 10,400 + 10,500 + 10,600 + 10,700 + 10,800 + 10,900 + 11,000 + 11,100 + 11,200 + 11,300 + 11,400 + 11,500 + 11,600 + 11,700 + 11,800 + 11,900) This is an arithmetic progression. The sum can be calculated as: Sum = (Number of terms / 2) * (First term + Last term) Sum = (48 / 2) * (7,200 + 11,900) Sum = 24 * 19,100 Sum = 458,400 Final Average Salary = Total Earnings for the 48 months / 48 months Final Average Salary = 458,400 / 48 Final Average Salary = 9,550 This calculation aligns with the provisions of the Illinois Pension Code for calculating final average salary for members of the State Universities Retirement System. The concept of “highest creditable earnings for any 48 consecutive months within the last 10 years of credited service” is a key component of many defined benefit pension plans in Illinois, ensuring that retirement benefits reflect recent earning levels. This approach aims to provide a more accurate reflection of a member’s earning capacity at the time of retirement compared to averaging over an entire career. Understanding the specific look-back period and the definition of creditable earnings is crucial for accurate pension calculations.