Personnel and Pensions Committee

Adopted in House Comm. on Nov 17, 2010

 

 


 

 


 
09600SB0550ham001LRB096 06603 JDS 44019 a

1
AMENDMENT TO SENATE BILL 550

2    AMENDMENT NO. ______. Amend Senate Bill 550 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Section 1-160 as follows:
 
6    (40 ILCS 5/1-160)
7    Sec. 1-160. Provisions applicable to new hires.
8    (a) The The provisions of this Section apply to a person
9who first becomes an employee and a participant under any
10retirement system or pension fund under this Code, other than a
11retirement system or pension fund established under Article 2,
123, 4, 5, 6, or 18 of this Code, on or after the effective date
13of this amendatory Act of the 96th General Assembly
14notwithstanding any other provision of this Code to the
15contrary, but do not apply to any self-managed plan established
16under this Code, to any person with respect to service as a

 

 

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1sheriff's law enforcement employee under Article 7, or to any
2participant of the retirement plan established under Section
322-101.
4    (b) "Final average salary" means the average monthly salary
5obtained by dividing the total salary of the participant during
6the 96 consecutive months of service within the last 120 months
7of service in which the total salary was the highest by the
8number of months of service in that period; however, the annual
9final average salary may not exceed $106,800, as automatically
10increased by the lesser of 3% or one-half of the annual
11increase in the consumer price index-u during the preceding
1212-month calendar year. For the purposes of a person who first
13becomes an employee of any retirement system or pension fund to
14which this Section applies on or after the effective date of
15this amendatory Act of the 96th General Assembly, in this Code,
16"final average salary" shall be substituted for the following:
17        (1) In Articles 7 (except for service as sheriff's law
18    enforcement employees) and 15, "final rate of earnings".
19        (2) In Articles 8, 9, 10, 11, and 12, "highest average
20    annual salary for any 4 consecutive years within the last
21    10 years of service immediately preceding the date of
22    withdrawal".
23        (3) In Article 13, "average final salary".
24        (4) In Article 14, "final average compensation".
25        (5) In Article 17, "average salary".
26        (6) In Section 22-207, "wages or salary received by him

 

 

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1    at the date of retirement or discharge".
2    For the purposes of this Section, "consumer price index-u"
3means the index published by the Bureau of Labor Statistics of
4the United States Department of Labor that measures the average
5change in prices of goods and services purchased by all urban
6consumers, United States city average, all items, 1982-84 =
7100. The new amount resulting from each annual adjustment shall
8be determined by the Public Pension Division of the Department
9of Insurance and made available to the boards of the retirement
10systems and pension funds.
11    (c) A participant is entitled to a retirement annuity
12beginning on the date specified by the participant in a written
13application only if, on that specified date, he or she has
14attained age 67 and has at least 10 years of service credit.
15    A participant who has attained age 62 and has at least 10
16years of service credit may elect to receive the lower
17retirement annuity provided in subsection (d) of this Section.
18    (d) The retirement annuity of a participant who is retiring
19after attaining age 62 with at least 10 years of service credit
20shall be reduced by one-half of 1% for each month that the
21member's age is under age 67.
22    (e) Any retirement annuity or supplemental annuity shall be
23subject to annual increases upon (1) attainment of age 67 or
24(2) the first anniversary of the commencement of the annuity,
25whichever occurs later. Each annual increase shall be
26calculated at 3% or one-half the annual increase in the

 

 

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1consumer price index-u for the preceding calendar year,
2whichever is less, of the originally granted retirement
3annuity. If the increase in the consumer price index-u for the
4preceding calendar year is zero or there is a decrease, then
5the annuity shall not be increased.
6    (f) The initial survivor's annuity of an otherwise eligible
7survivor of a participant who first becomes a participant on or
8after the effective date of this amendatory Act of the 96th
9General Assembly shall be in the amount of 66 2/3% of the
10participant's earned retirement annuity at the date of death
11and shall be increased (1) on each January 1 occurring on or
12after the commencement of the annuity if the deceased member
13died while receiving a retirement annuity or (2) in other
14cases, on each January 1 occurring after the first anniversary
15of the commencement of the annuity. Each annual increase shall
16be calculated at 3% or one-half the annual increase in the
17consumer price index-u for the preceding calendar year,
18whichever is less, of the originally granted survivor's
19annuity. If the increase in the consumer price index-u for the
20preceding calendar year is zero or there is a decrease, then
21the annuity shall not be increased.
22    (g) The benefits in Section 14-110 apply only if the person
23is a State policeman, a fire fighter in the fire protection
24service of a department, or a security employee of the
25Department of Corrections or the Department of Juvenile
26Justice, as those terms are defined in subsection (b) of

 

 

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1Section 14-110. A person who meets the requirements of this
2Section is entitled to an annuity calculated under the
3provisions of Section 14-110, in lieu of the regular or minimum
4retirement annuity, only if the person has withdrawn from
5service with not less than 20 years of eligible creditable
6service and has attained age 60, regardless of whether the
7attainment of age 60 occurs while the person is still in
8service.
9    (h) If a person who first becomes a member of a retirement
10system or pension fund subject to this Section on or after the
11effective date of this amendatory Act of the 96th General
12Assembly is receiving a retirement annuity or retirement
13pension under that system or fund and accepts employment in a
14position covered under the same Article or any other Article of
15this Code on a full-time basis, then the person's retirement
16annuity or retirement pension under that system or fund shall
17be suspended during that employment. Upon termination of that
18employment, the person's retirement annuity or retirement
19pension payments shall resume and, if appropriate, be
20recalculated under the applicable provisions of this Code.
21    (i) Notwithstanding any other provision of this Section, a
22person who first becomes a participant of the retirement system
23established under Article 15 on or after the effective date of
24this amendatory Act of the 96th General Assembly shall have the
25option to enroll in the self-managed plan created under Section
2615-158.2 of this Code.

 

 

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1    (j) In the case of a conflict between the provisions of
2this Section and any other provision of this Code, the
3provisions of this Section shall control.
4(Source: P.A. 96-889, eff. 1-1-11.)".