Rep. Michael J. Zalewski

Filed: 4/30/2013

 

 


 

 


 
09800SB1922ham001LRB098 09566 EFG 45131 a

1
AMENDMENT TO SENATE BILL 1922

2    AMENDMENT NO. ______. Amend Senate Bill 1922 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Illinois Pension Code is amended by
5changing Sections 9-134 and 9-160 as follows:
 
6    (40 ILCS 5/9-134)  (from Ch. 108 1/2, par. 9-134)
7    Sec. 9-134. Minimum annuity - Additional provisions.
8    (a) An employee who withdraws after July 1, 1957 at age 60
9or more with 20 or more years of service, for whom the amount
10of age and service and prior service annuity combined is less
11than the amount stated in this Section from the date of
12withdrawal, instead of all annuities otherwise provided in this
13Article, is entitled to receive an annuity for life of an
14amount equal to 1 2/3% for each year of service, of his highest
15average annual salary for any 5 consecutive years within the
16last 10 years of service immediately preceding the date of

 

 

09800SB1922ham001- 2 -LRB098 09566 EFG 45131 a

1withdrawal; provided that in the case of any employee who
2withdraws on or after July 1, 1971, such employee age 60 or
3over with 20 or more years of service, or who withdraws on or
4after January 1, 1982 and on or after attainment of age 65 with
510 or more years of service, shall instead receive an annuity
6for life equal to 1.67% for each of the first 10 years of
7service; 1.90% for each of the next 10 years of service; 2.10%
8for each year of service in excess of 20 but not exceeding 30;
9and 2.30% for each year of service in excess of 30, based on
10the highest average annual salary for any 4 consecutive years
11within the last 10 years of service immediately preceding the
12date of withdrawal.
13    An employee who withdraws after July 1, 1957, but prior to
14January 1, 1988, with 20 or more years of service, before age
1560 is entitled to annuity, to begin not earlier than age 55, if
16under such age at withdrawal, as computed in the last preceding
17paragraph, reduced 1/2 of 1% for each full month or fractional
18part thereof that his attained age when annuity is to begin is
19less than 60 to the end that the total reduction at age 55
20shall be 30%, except that an employee retiring at age 55 or
21over but less than age 60, having at least 35 years of service,
22shall not be subject to the reduction in his retirement annuity
23because of retirement below age 60.
24    An employee who withdraws on or after January 1, 1988, with
2520 or more years of service and before age 60, is entitled to
26annuity as computed above, to begin not earlier than age 50 if

 

 

09800SB1922ham001- 3 -LRB098 09566 EFG 45131 a

1under such age at withdrawal, reduced 1/2 of 1% for each full
2month or fractional part thereof that his attained age when
3annuity is to begin is less than 60, to the end that the total
4reduction at age 50 shall be 60%, except that an employee
5retiring at age 50 or over but less than age 60, having at
6least 30 years of service, shall not be subject to the
7reduction in retirement annuity because of retirement below age
860.
9    An employee who withdraws on or after January 1, 1992 but
10before January 1, 1993, at age 60 or over with 5 or more years
11of service, may elect, in lieu of any other employee annuity
12provided in this Section, to receive an annuity for life equal
13to 2.20% for each of the first 20 years of service, and 2.40%
14for each year of service in excess of 20, based on the highest
15average annual salary for any 4 consecutive years within the
16last 10 years of service immediately preceding the date of
17withdrawal. An employee who withdraws on or after January 1,
181992, but before January 1, 1993, on or after attainment of age
1955 but before attainment of age 60 with 5 or more years of
20service, is entitled to elect such annuity, but the annuity
21shall be reduced 0.25% for each full month or fractional part
22thereof that his attained age when the annuity is to begin is
23less than age 60, to the end that the total reduction at age 55
24shall be 15%, except that an employee retiring at age 55 or
25over but less than age 60, having at least 30 years of service,
26shall not be subject to the reduction in retirement annuity

 

 

09800SB1922ham001- 4 -LRB098 09566 EFG 45131 a

1because of retirement below age 60. This annuity benefit
2formula shall only apply to those employees who are age 55 or
3over prior to January 1, 1993, and who elect to withdraw at age
455 or over on or after January 1, 1992 but before January 1,
51993.
6    An employee who withdraws on or after July 1, 1996 but
7before August 1, 1996, at age 55 or over with 8 or more years of
8service, may elect, in lieu of any other employee annuity
9provided in this Section, to receive an annuity for life equal
10to 2.20% for each of the first 20 years of service, and 2.40%
11for each year of service in excess of 20, based on the highest
12average annual salary for any 4 consecutive years within the
13last 10 years of service immediately preceding the date of
14withdrawal, but the annuity shall be reduced by 0.25% for each
15full month or fractional part thereof that the annuitant's
16attained age when the annuity is to begin is less than age 60,
17unless the annuitant has at least 30 years of service.
18    The maximum annuity under this paragraph (a) shall not
19exceed 70% of highest average annual salary for any 5
20consecutive years within the last 10 years of service in the
21case of an employee who withdraws prior to July 1, 1971, and
2275% of the highest average annual salary for any 4 consecutive
23years within the last 10 years of service immediately preceding
24the date of withdrawal if withdrawal takes place on or after
25July 1, 1971 and prior to January 1, 1988, and 80% of the
26highest average annual salary for any 4 consecutive years

 

 

09800SB1922ham001- 5 -LRB098 09566 EFG 45131 a

1within the last 10 years of service immediately preceding the
2date of withdrawal if withdrawal takes place on or after
3January 1, 1988. Fifteen hundred dollars shall be considered
4the minimum amount of annual salary for any year, and the
5maximum shall be his salary as defined in this Article, except
6that for the years before 1957 and subsequent to 1952 the
7maximum annual salary to be considered shall be $6,000, and for
8any year before the year 1953, $4,800.
9    (b) Any employee who withdraws on or after July 1, 1985 but
10prior to January 1, 1988, at age 60 or over with 10 or more
11years of service, may elect in lieu of the benefit in paragraph
12(a) to receive an annuity for life equal to 2.00% for each year
13of service, based on the highest average annual salary for any
144 consecutive years within the last 10 years of service
15immediately preceding the date of withdrawal. An employee who
16withdraws on or after July 1, 1985, but prior to January 1,
171988, with 10 or more years of service, but before age 60, is
18entitled to elect such annuity, to begin not earlier than age
1955, but the annuity shall be reduced 0.5% for each full month
20or fractional part thereof that his attained age when the
21annuity is to begin is less than 60, to the end that the total
22reduction at age 55 shall be 30%; except that an employee
23retiring at age 55 or over but less than age 60, having at
24least 30 years of service, shall not be subject to the
25reduction in retirement annuity because of retirement below age
2660.

 

 

09800SB1922ham001- 6 -LRB098 09566 EFG 45131 a

1    An employee who withdraws on or after January 1, 1988, at
2age 60 or over with 10 or more years of service, may elect, in
3lieu of the benefit in paragraph (a), to receive an annuity for
4life equal to 2.20% for each of the first 20 years of service,
5and 2.4% for each year of service in excess of 20, based on the
6highest average annual salary for any 4 consecutive years
7within the last 10 years of service immediately preceding the
8date of withdrawal. An employee who withdraws on or after
9January 1, 1988, with 10 or more years of service, but before
10age 60, is entitled to elect such annuity, to begin not earlier
11than age 50, but the annuity shall be reduced 0.5% for each
12full month or fractional part thereof that his attained age
13when the annuity is to begin is less than 60, to the end that
14the total reduction at age 50 shall be 60%, except that an
15employee retiring at age 50 or over but less than age 60,
16having at least 30 years of service, shall not be subject to
17the reduction in retirement annuity because of retirement below
18age 60.
19    An employee who withdraws on or after June 30, 2002 with 10
20or more years of service may elect, in lieu of any other
21retirement annuity provided under this Article, to receive an
22annuity for life, beginning no earlier than upon attainment of
23age 50, equal to 2.40% of his or her highest average annual
24salary for any 4 consecutive years within the last 10 years of
25service immediately preceding withdrawal, for each year of
26service. If the employee has less than 30 years of service, the

 

 

09800SB1922ham001- 7 -LRB098 09566 EFG 45131 a

1annuity shall be reduced by 0.5% for each full month or
2remaining fraction thereof that the employee's attained age
3when the annuity is to begin is less than 60.
4    The maximum annuity under this paragraph (b) shall not
5exceed 75% of the highest average annual salary for any 4
6consecutive years within the last 10 years of service
7immediately preceding the date of withdrawal if withdrawal
8occurs prior to January 1, 1988, or 80% of the highest average
9annual salary for any 4 consecutive years within the last 10
10years of service immediately preceding the date of withdrawal
11if withdrawal takes place on or after January 1, 1988.
12    The provisions of this paragraph (b) do not apply to any
13former County employee receiving an annuity from the fund, who
14re-enters service as a County employee, unless he renders at
15least 3 years of additional service after the date of re-entry.
16    (c) For an employee receiving disability benefit, the
17salary for annuity purposes under paragraph (a) or (b) of this
18Section shall, for all periods of disability benefit subsequent
19to the year 1956, be the amount on which his disability benefit
20was based.
21    (d) A county employee with 20 or more years of service,
22whose entire disability benefit credit period expires before
23attainment of age 50 (age 55 if expiration occurs before
24January 1, 1988, or age 62 if the member first became a
25participant on or after January 1, 2011), while still disabled
26for service is entitled upon withdrawal to the larger of:

 

 

09800SB1922ham001- 8 -LRB098 09566 EFG 45131 a

1        (1) The minimum annuity provided above, assuming that
2    he is then age 50 (age 55 if expiration occurs before
3    January 1, 1988, or age 62 if the member first became a
4    participant on or after January 1, 2011), and reducing such
5    annuity to its actuarial equivalent at his attained age on
6    such date, or
7        (2) the annuity provided from his age and service and
8    prior service annuity credits.
9    (e) The minimum annuity provisions above do not apply to
10any former county employee receiving an annuity from the fund,
11who re-enters service as a county employee, unless he renders
12at least 3 years of additional service after the date of
13re-entry.
14    (f) Any employee in service on July 1, 1947, or who enters
15service thereafter before attaining age 65 and withdraws after
16age 65 with less than 10 years of service for whom the annuity
17has been fixed under the foregoing Sections of this Article,
18shall, instead of the annuity so fixed, receive an annuity as
19follows:
20    Such amount as he could have received had the accumulated
21amounts for annuity been improved with interest at the
22effective rate to the date of withdrawal, or to attainment of
23age 70, whichever is earlier, and had the county contributed to
24such earlier date for age and service annuity the amount that
25it would have contributed had he been under age 65, after the
26date his annuity was fixed in accordance with this Article, and

 

 

09800SB1922ham001- 9 -LRB098 09566 EFG 45131 a

1assuming his annuity were computed from such accumulations as
2of his age on such earlier date. However those employees who
3before July 1, 1953, made additional contributions in
4accordance with this Article, the annuity so computed under
5this paragraph shall not exceed the annuity which would be
6payable under the other provisions of this Section if the
7employee concerned was credited with 20 years of service and
8would qualify for annuity thereunder.
9    (g) Instead of the annuity provided in this or any other
10Section of this Article, an employee having attained age 65
11with at least 15 years of service may elect to receive a
12minimum annual annuity for life equal to 1% of the highest
13average annual salary for any 4 consecutive years within the
14last 10 years of service immediately preceding retirement for
15each year of service, plus the sum of $25 for each year of
16service provided that no such minimum annual annuity may be
17greater than 60% of such highest average annual salary.
18    (h) The annuity is payable in equal monthly installments.
19    (i) If, by operation of law, a function of a governmental
20unit, as defined by Section 20-107 of this Code, is transferred
21in whole or in part to the county in which this Article 9 is
22created as set forth in Section 9-101, and employees of the
23governmental unit are transferred as a class to such county,
24the earnings credits in the retirement system covering the
25governmental unit which have been validated under Section
2620-109 of this Code shall be considered in determining the

 

 

09800SB1922ham001- 10 -LRB098 09566 EFG 45131 a

1highest average annual salary for purposes of this Section
29-134.
3    (j) The annuity being paid to an employee annuitant on July
41, 1988, shall be increased on that date by 1% for each full
5year that has elapsed from the date the annuity began.
6    (k) Notwithstanding anything to the contrary in this
7Article 9, Section 20-131 shall not apply to an employee who
8withdraws on or after January 1, 1988, but prior to attaining
9age 55. Therefore, no employee shall be entitled to elect to
10have the alternative formula previously set forth in Section
1120-122 prior to the amendatory Act of 1975 apply to any
12annuity, the payment of which commenced after January 1, 1988,
13but prior to such employee's attainment of age 55.
14(Source: P.A. 92-599, eff. 6-28-02.)
 
15    (40 ILCS 5/9-160)  (from Ch. 108 1/2, par. 9-160)
16    Sec. 9-160. Annuity after withdrawal while disabled. An
17employee whose disability continues after he has received
18ordinary disability benefit for the maximum period of time
19prescribed by this Article, and who withdraws before age 60
20while still so disabled, is entitled to receive the annuity
21provided from the total sum accumulated to his credit from
22employee contributions and county contributions to be computed
23as of his age on the date of withdrawal.
24    The annuity to which his wife shall be entitled upon his
25death, shall be fixed on the date of his withdrawal. It shall

 

 

09800SB1922ham001- 11 -LRB098 09566 EFG 45131 a

1be provided on a reversionary annuity basis from the total sum
2accumulated to his credit for widow's annuity on the date of
3such withdrawal.
4    Upon the death of any such employee while on annuity, if
5his service was at least 4 years after the date of his original
6entry, and at least 2 years after the date of his latest
7re-entry, his unmarried child or children under age 18 shall be
8entitled to annuity specified in this Article for children of
9an employee who retires after age 50 (age 55 for withdrawal
10before January 1, 1988), subject to prescribed limitations on
11total payments to a family of an employee.
12(Source: P.A. 85-964.)
 
13    Section 99. Effective date. This Act takes effect upon
14becoming law.".