Full Text of HB6149 97th General Assembly
HB6149 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB6149 Introduced , by Rep. Daniel Biss SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Pension Code in relation to the 5 State-funded retirement systems. For persons who first become participants on or after July 1, 2013, creates a new benefit package based on an individual "notional cash balance account" instead of the regular benefits of the systems. The plan provides for a different employee contribution rate; for retirement and survivor's annuities based on the participant's account balance; and for annual increases of the lesser of 3% or 1/2 of the annual increase in the cpi-u. Includes other provisions. Also includes conforming and technical changes. Amends the State Mandates Act to require implementation without reimbursement. Effective January 1, 2013.
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| | FISCAL NOTE ACT MAY APPLY | PENSION IMPACT NOTE ACT MAY APPLY | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
| | A BILL FOR |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 1-160, 2-108.1, 2-119, 2-119.01, 2-119.1, 2-121.1, | 6 | | 2-122, 2-126, 15-113.6, 18-124, 18-125, 18-125.1, 18-127, | 7 | | 18-128.01, 18-133, 20-121, 20-123, 20-124, and 20-125 and by | 8 | | adding Sections 1-161, 2-107.1, and 18-110.1 as follows: | 9 | | (40 ILCS 5/1-160) | 10 | | Sec. 1-160. Provisions applicable to new hires. | 11 | | (a) The provisions of this Section apply to a person who, | 12 | | on or after January 1, 2011, first becomes a member or a | 13 | | participant under any reciprocal retirement system or pension | 14 | | fund established under this Code, other than a retirement | 15 | | system or pension fund established under Article 2, 3, 4, 5, 6, | 16 | | or 18 of this Code, notwithstanding any other provision of this | 17 | | Code to the contrary, but do not apply (i) to any self-managed | 18 | | plan established under this Code, (ii) to any person with | 19 | | respect to service as a sheriff's law enforcement employee | 20 | | under Article 7, (iii) with respect to service for which a | 21 | | person participates under Section 1-161, or (iv) to any | 22 | | participant of the retirement plan established under Section | 23 | | 22-101. |
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| 1 | | (b) "Final average salary" means the average monthly (or | 2 | | annual) salary obtained by dividing the total salary or | 3 | | earnings calculated under the Article applicable to the member | 4 | | or participant during the 96 consecutive months (or 8 | 5 | | consecutive years) of service within the last 120 months (or 10 | 6 | | years) of service in which the total salary or earnings | 7 | | calculated under the applicable Article was the highest by the | 8 | | number of months (or years) of service in that period. For the | 9 | | purposes of a person who first becomes a member or participant | 10 | | of any retirement system or pension fund to which this Section | 11 | | applies on or after January 1, 2011, in this Code, "final | 12 | | average salary" shall be substituted for the following: | 13 | | (1) In Articles 7 (except for service as sheriff's law | 14 | | enforcement employees) and 15, "final rate of earnings". | 15 | | (2) In Articles 8, 9, 10, 11, and 12, "highest average | 16 | | annual salary for any 4 consecutive years within the last | 17 | | 10 years of service immediately preceding the date of | 18 | | withdrawal". | 19 | | (3) In Article 13, "average final salary". | 20 | | (4) In Article 14, "final average compensation". | 21 | | (5) In Article 17, "average salary". | 22 | | (6) In Section 22-207, "wages or salary received by him | 23 | | at the date of retirement or discharge". | 24 | | (b-5) Beginning on January 1, 2011, for all purposes under | 25 | | this Code (including without limitation the calculation of | 26 | | benefits and employee contributions), the annual earnings, |
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| 1 | | salary, or wages (based on the plan year) of a member or | 2 | | participant to whom this Section applies shall not exceed | 3 | | $106,800; however, that amount shall annually thereafter be | 4 | | increased by the lesser of (i) 3% of that amount, including all | 5 | | previous adjustments, or (ii) one-half the annual unadjusted | 6 | | percentage increase (but not less than zero) in the consumer | 7 | | price index-u
for the 12 months ending with the September | 8 | | preceding each November 1, including all previous adjustments. | 9 | | For the purposes of this Section, "consumer price index-u" | 10 | | means
the index published by the Bureau of Labor Statistics of | 11 | | the United States
Department of Labor that measures the average | 12 | | change in prices of goods and
services purchased by all urban | 13 | | consumers, United States city average, all
items, 1982-84 = | 14 | | 100. The new amount resulting from each annual adjustment
shall | 15 | | be determined by the Public Pension Division of the Department | 16 | | of Insurance and made available to the boards of the retirement | 17 | | systems and pension funds by November 1 of each year. | 18 | | (c) A member or participant is entitled to a retirement
| 19 | | annuity upon written application if he or she has attained age | 20 | | 67 and has at least 10 years of service credit and is otherwise | 21 | | eligible under the requirements of the applicable Article. | 22 | | A member or participant who has attained age 62 and has at | 23 | | least 10 years of service credit and is otherwise eligible | 24 | | under the requirements of the applicable Article may elect to | 25 | | receive the lower retirement annuity provided
in subsection (d) | 26 | | of this Section. |
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| 1 | | (d) The retirement annuity of a member or participant who | 2 | | is retiring after attaining age 62 with at least 10 years of | 3 | | service credit shall be reduced by one-half
of 1% for each full | 4 | | month that the member's age is under age 67. | 5 | | (e) Any retirement annuity or supplemental annuity shall be | 6 | | subject to annual increases on the January 1 occurring either | 7 | | on or after the attainment of age 67 or the first anniversary | 8 | | of the annuity start date, whichever is later. Each annual | 9 | | increase shall be calculated at 3% or one-half the annual | 10 | | unadjusted percentage increase (but not less than zero) in the | 11 | | consumer price index-u for the 12 months ending with the | 12 | | September preceding each November 1, whichever is less, of the | 13 | | originally granted retirement annuity. If the annual | 14 | | unadjusted percentage change in the consumer price index-u for | 15 | | the 12 months ending with the September preceding each November | 16 | | 1 is zero or there is a decrease, then the annuity shall not be | 17 | | increased. | 18 | | (f) The initial survivor's or widow's annuity of an | 19 | | otherwise eligible survivor or widow of a retired member or | 20 | | participant who first became a member or participant on or | 21 | | after January 1, 2011 shall be in the amount of 66 2/3% of the | 22 | | retired member's or participant's retirement annuity at the | 23 | | date of death. In the case of the death of a member or | 24 | | participant who has not retired and who first became a member | 25 | | or participant on or after January 1, 2011, eligibility for a | 26 | | survivor's or widow's annuity shall be determined by the |
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| 1 | | applicable Article of this Code. The initial benefit shall be | 2 | | 66 2/3% of the earned annuity without a reduction due to age. A | 3 | | child's annuity of an otherwise eligible child shall be in the | 4 | | amount prescribed under each Article if applicable. Any | 5 | | survivor's or widow's annuity shall be increased (1) on each | 6 | | January 1 occurring on or after the commencement of the annuity | 7 | | if
the deceased member died while receiving a retirement | 8 | | annuity or (2) in
other cases, on each January 1 occurring | 9 | | after the first anniversary
of the commencement of the annuity. | 10 | | Each annual increase shall be calculated at 3% or one-half the | 11 | | annual unadjusted percentage increase (but not less than zero) | 12 | | in the consumer price index-u for the 12 months ending with the | 13 | | September preceding each November 1, whichever is less, of the | 14 | | originally granted survivor's annuity. If the annual | 15 | | unadjusted percentage change in the consumer price index-u for | 16 | | the 12 months ending with the September preceding each November | 17 | | 1 is zero or there is a decrease, then the annuity shall not be | 18 | | increased. | 19 | | (g) The benefits in Section 14-110 apply only if the person | 20 | | is a State policeman, a fire fighter in the fire protection | 21 | | service of a department, or a security employee of the | 22 | | Department of Corrections or the Department of Juvenile | 23 | | Justice, as those terms are defined in subsection (c) (b) of | 24 | | Section 14-110. A person who meets the requirements of this | 25 | | Section is entitled to an annuity calculated under the | 26 | | provisions of Section 14-110, in lieu of the regular or minimum |
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| 1 | | retirement annuity, only if the person has withdrawn from | 2 | | service with not less than 20
years of eligible creditable | 3 | | service and has attained age 60, regardless of whether
the | 4 | | attainment of age 60 occurs while the person is
still in | 5 | | service. | 6 | | (h) If a person who first becomes a member or a participant | 7 | | of a retirement system or pension fund subject to this Section | 8 | | on or after January 1, 2011 is receiving a retirement annuity | 9 | | or retirement pension under that system or fund and becomes a | 10 | | member or participant under any other system or fund created by | 11 | | this Code and is employed on a full-time basis, except for | 12 | | those members or participants exempted from the provisions of | 13 | | this Section under subsection (a) of this Section, then the | 14 | | person's retirement annuity or retirement pension under that | 15 | | system or fund shall be suspended during that employment. Upon | 16 | | termination of that employment, the person's retirement | 17 | | annuity or retirement pension payments shall resume and be | 18 | | recalculated if recalculation is provided for under the | 19 | | applicable Article of this Code. | 20 | | If a person who first becomes a member of a retirement | 21 | | system or pension fund subject to this Section on or after | 22 | | January 1, 2012 and is receiving a retirement annuity or | 23 | | retirement pension under that system or fund and accepts on a | 24 | | contractual basis a position to provide services to a | 25 | | governmental entity from which he or she has retired, then that | 26 | | person's annuity or retirement pension earned as an active |
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| 1 | | employee of the employer shall be suspended during that | 2 | | contractual service. A person receiving an annuity or | 3 | | retirement pension under this Code shall notify the pension | 4 | | fund or retirement system from which he or she is receiving an | 5 | | annuity or retirement pension, as well as his or her | 6 | | contractual employer, of his or her retirement status before | 7 | | accepting contractual employment. A person who fails to submit | 8 | | such notification shall be guilty of a Class A misdemeanor and | 9 | | required to pay a fine of $1,000. Upon termination of that | 10 | | contractual employment, the person's retirement annuity or | 11 | | retirement pension payments shall resume and, if appropriate, | 12 | | be recalculated under the applicable provisions of this Code. | 13 | | (i) Notwithstanding any other provision of this Section, a | 14 | | person who first becomes a participant of the retirement system | 15 | | established under Article 15 on or after January 1, 2011 shall | 16 | | have the option to enroll in the self-managed plan created | 17 | | under Section 15-158.2 of this Code. | 18 | | (j) In the case of a conflict between the provisions of | 19 | | this Section and any other provision of this Code, the | 20 | | provisions of this Section shall control.
| 21 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11; | 22 | | 97-609, eff. 1-1-12.) | 23 | | (40 ILCS 5/1-161 new) | 24 | | Sec. 1-161. Cash Balance Plan. | 25 | | (a) Applicability. This Section applies to every person |
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| 1 | | who, on or after July 1, 2013, first begins to participate in a | 2 | | retirement system established under Article 2, 14, 15, 16, or | 3 | | 18 of this Code; except that it does not apply to any person | 4 | | who elects to participate in a self-managed plan established | 5 | | under the applicable retirement system in lieu of the | 6 | | retirement benefits otherwise provided by that system. | 7 | | (b) Title and Nature of Plan. The package of benefits | 8 | | provided under this Section may be referred to as the "cash | 9 | | balance plan". Persons subject to the provisions of this | 10 | | Section may be referred to as "participants in the cash balance | 11 | | plan". | 12 | | The cash balance plan is not a separate retirement plan; it | 13 | | is a package of benefits and employee contributions for certain | 14 | | participants of specified retirement systems established under | 15 | | this Code. This package replaces certain benefits and employee | 16 | | contributions otherwise provided for in Section 1-160 of this | 17 | | Code and the Articles of this Code that govern those retirement | 18 | | systems. Persons who participate in the cash balance plan | 19 | | remain participants in the applicable retirement system. | 20 | | (b-5) Definitions. As used in this Section: | 21 | | "Account" means the notional cash balance account | 22 | | established under this Section for a participant in the cash | 23 | | balance plan. | 24 | | "Consumer Price Index-U" means
the Consumer Price Index | 25 | | published by the Bureau of Labor Statistics of the United | 26 | | States
Department of Labor that measures the average change in |
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| 1 | | prices of goods and
services purchased by all urban consumers, | 2 | | United States city average, all
items, 1982-84 = 100. | 3 | | "Covered employee" means a person employed in a position | 4 | | eligible for Social Security coverage. | 5 | | "Noncovered employee" means a person employed in a position | 6 | | not eligible for Social Security coverage. | 7 | | "Salary" means "salary" as defined in Article 2, 16, or 18, | 8 | | "compensation" as defined in Article 14, or "earnings" as | 9 | | defined in Article 15, whichever is applicable, without regard | 10 | | to the salary limitation in subsection (b-5) of Section 1-160 | 11 | | or the corresponding limitations in Articles 2 and 18. | 12 | | "Special formula employee" means and is limited to a person | 13 | | who is actively employed as a State policeman, a fire fighter | 14 | | in the fire protection service of a department, or a security | 15 | | employee of the Department of Corrections or the Department of | 16 | | Juvenile Justice, as those terms are defined in subsection (c) | 17 | | of Section 14-110. | 18 | | "Special formula employment" means employment as a special | 19 | | formula employee. | 20 | | (c) Cash Balance Account. A notional cash balance account | 21 | | shall be established by the applicable retirement system for | 22 | | each participant in the cash balance plan. The account is | 23 | | notional and does not contain any actual money segregated from | 24 | | the commingled assets of the retirement system. The cash | 25 | | balance in the account is to be used in calculating benefits as | 26 | | provided in this Section, but is not to be used in the |
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| 1 | | calculation of any refund, transfer, or other benefit under the | 2 | | applicable Article. | 3 | | The amounts to be credited to the cash balance account | 4 | | shall consist of (i) amounts contributed by or on behalf of the | 5 | | participant as employee contributions, (ii) attributable | 6 | | employer contributions, and (iii) return on investment that is | 7 | | attributable to the account, all as provided in this Section. | 8 | | Each payment of retirement annuity and each payment of a | 9 | | disability retirement benefit identified in subsection (i) of | 10 | | this Section shall be debited from the participant's cash | 11 | | balance account, except that the balance in the account shall | 12 | | not be less than zero. | 13 | | Whenever necessary for the prompt calculation or | 14 | | administration of a benefit under this Section, the applicable | 15 | | retirement system may estimate an amount to be credited to or | 16 | | debited from a participant's cash balance account and then | 17 | | adjust the amount so credited or debited when more accurate | 18 | | information becomes available. | 19 | | The applicable retirement system shall give to each | 20 | | participant in the cash balance plan who has not yet retired | 21 | | annual notice of (1) the balance in the participant's cash | 22 | | balance account and (2) an estimate of the retirement annuity | 23 | | that will be payable to the participant if he or she retires at | 24 | | age 67 (or, if applicable, at age 60 with 20 years of special | 25 | | formula employment). | 26 | | (d) Employee Contributions. Instead of the employee |
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| 1 | | contributions otherwise required under the applicable Article, | 2 | | each participant in the cash balance plan shall make employee | 3 | | contributions to the retirement system as follows: | 4 | | (1) For a covered employee who is not a special formula | 5 | | employee, 4.0% of each payment of salary. | 6 | | (2) For a covered employee who is a special formula | 7 | | employee, 6.0% of each payment of salary. | 8 | | (3) For a noncovered employee who is not a special | 9 | | formula employee, 8.0% of each payment of salary. | 10 | | (4) For a noncovered employee who is a special formula | 11 | | employee, 12.0% of each payment of salary. | 12 | | The amount of these contributions shall be credited to the | 13 | | participant's cash balance account upon receipt by the | 14 | | retirement system. | 15 | | (e) Attributable Employer Contributions. Upon receipt of | 16 | | each employee contribution under subsection (d), an amount | 17 | | representing the employer contribution shall be credited to the | 18 | | participant's cash balance account. The attributable employer | 19 | | contribution shall be equal to (1) 100% of the employee | 20 | | contribution, for contributions paid during a calendar year on | 21 | | salary up to the Social Security Wage Base for that year, and | 22 | | 50% of the employee contribution, for contributions paid during | 23 | | that year on salary over the Social Security Wage Base for that | 24 | | year, less (2) the amount designated by the retirement system | 25 | | under subsection (i) of this Section as representing the cost | 26 | | of providing disability benefits. |
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| 1 | | The attributable employer contribution to be credited to | 2 | | the participant's account is not the same as the actual | 3 | | employer contributions required under the provisions of the | 4 | | applicable Article of this Code. | 5 | | (f) Attributable Earnings on Investments. An amount | 6 | | representing earnings on investments shall be determined by the | 7 | | retirement system and credited to the participant's cash | 8 | | balance account for each year in which there is a positive | 9 | | balance in that account. The amount shall be a percentage of | 10 | | the average daily balance in the cash balance account during | 11 | | that year, equal to the system's rate of investment earnings in | 12 | | the previous year, but in no case less than 5% or more than 10% | 13 | | of the average daily balance in the cash balance account. | 14 | | (g) Retirement Annuity. A participant in the cash balance | 15 | | plan may begin collecting a retirement annuity at age 67, or in | 16 | | the case of a participant with at least 20 years of special | 17 | | formula employment, at age 60, but in either case no earlier | 18 | | than the date of termination of active employment under the | 19 | | retirement system. | 20 | | The amount of the retirement annuity shall be calculated by | 21 | | the retirement system, based on the balance in the cash balance | 22 | | account, the assumption of future investment returns of 5%, and | 23 | | any other actuarial assumptions and tables adopted by the board | 24 | | of the retirement system for this purpose. The calculation | 25 | | shall take into account the cost of the retirement annuity, the | 26 | | annual increases in retirement annuity, and, if the participant |
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| 1 | | has an eligible survivor, the anticipated survivor's annuity | 2 | | and the annual increases in that annuity. The calculation shall | 3 | | be designed to determine the initial retirement annuity that | 4 | | would result in the balance in the participant's account | 5 | | arriving at zero on the date when the last payment of the | 6 | | retirement annuity (or survivor's annuity, if the participant | 7 | | has an eligible survivor) is anticipated to be paid under the | 8 | | relevant actuarial assumptions. | 9 | | (h) Annual Increase in Retirement Annuity. The retirement | 10 | | annuity shall be subject to annual increases on each January 1 | 11 | | occurring on or after the attainment of age 67 or the first | 12 | | anniversary of the annuity start date, whichever is later. Each | 13 | | annual increase shall be a percentage of the originally granted | 14 | | retirement annuity, equal to 3% or one-half of the annual | 15 | | unadjusted percentage increase in the Consumer Price Index-U | 16 | | for the 12 months ending with the preceding September as | 17 | | certified under subsection (o) of this Section, whichever is | 18 | | less. If that annual unadjusted percentage change is zero or | 19 | | there is a decrease, then the annuity shall not be increased. | 20 | | (i) Disability Benefits. The disability benefits provided | 21 | | under the applicable retirement system apply to participants in | 22 | | the cash balance plan, subject to and in accordance with the | 23 | | eligibility and other provisions of the applicable Article. | 24 | | Retirement due to disability under item (a)2(C) of Section | 25 | | 2-119, under Section 14-126, 15-153.2 or 16-149.2, or under | 26 | | subdivision (a)(2) of Section 18-124 shall be deemed a |
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| 1 | | disability benefit for the purposes of this Section, but | 2 | | payments of these disability retirement benefits shall be | 3 | | subject to debit from the cash balance count under subsection | 4 | | (c) of this Section. | 5 | | The board of each retirement system subject to this Section | 6 | | shall designate annually, as a percentage of salary, an amount | 7 | | representing the anticipated average cost of providing | 8 | | disability benefits for a participant in the cash balance plan. | 9 | | The amount so designated shall not exceed 1% of the | 10 | | participant's salary and shall be used for the sole purpose of | 11 | | calculating attributable employer contributions under | 12 | | subsection (e) of this Section. | 13 | | (j) Return to Service. Upon a return to full-time permanent | 14 | | employment under the same retirement system after beginning to | 15 | | receive a retirement annuity under the cash balance plan, the | 16 | | retirement annuity shall be suspended and active participation | 17 | | in the cash balance plan shall resume. Upon termination of the | 18 | | employment, the retirement annuity shall resume in an amount to | 19 | | be recalculated in accordance with subsection (g), taking into | 20 | | effect the changes in the cash balance account; but the resumed | 21 | | annuity shall in no event be less than the amount of annuity | 22 | | payable at the time it was suspended. | 23 | | (k) Survivor's Annuity. The initial survivor's annuity of | 24 | | an otherwise eligible survivor of a retired participant in the | 25 | | cash balance plan shall be in the amount of 66 2/3% of the | 26 | | retired participant's retirement annuity at the date of death. |
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| 1 | | In the case of the death of a participant in the cash | 2 | | balance plan who was not retired, eligibility for a survivor's | 3 | | annuity shall be determined under the applicable Article of | 4 | | this Code. The initial benefit shall be 66 2/3% of the | 5 | | retirement annuity that would have been payable under this | 6 | | Section if the deceased participant had retired on the date of | 7 | | death, based on the participant's account balance but | 8 | | disregarding the minimum age required for retirement. A child's | 9 | | or parent's annuity for an otherwise eligible child or | 10 | | dependent parent shall be in the amount, if any, prescribed | 11 | | under the applicable Article. | 12 | | (l) Annual Increase in Survivor's Annuity. A survivor's | 13 | | annuity shall be increased (i) on each January 1 occurring on | 14 | | or after the commencement of the annuity if
the deceased | 15 | | participant died while receiving a retirement annuity, or (ii) | 16 | | in
other cases, on each January 1 occurring after the first | 17 | | anniversary
of the commencement of the annuity. Each annual | 18 | | increase shall be a percentage of the originally granted | 19 | | survivor's annuity, equal to 3% or one-half of the annual | 20 | | unadjusted percentage increase in the Consumer Price Index-U | 21 | | for the 12 months ending with the preceding September as | 22 | | certified under subsection (o) of this Section, whichever is | 23 | | less. If that annual unadjusted percentage change is zero or | 24 | | there is a decrease, then the annuity shall not be increased. | 25 | | (m) Applicability of Provisions. The following provisions, | 26 | | if and as they exist in the applicable Article of this Code, do |
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| 1 | | not apply to participants in the cash balance plan: | 2 | | (1) minimum service or vesting requirements; | 3 | | (2) provisions limiting a retirement annuity to a | 4 | | specified percentage of salary; | 5 | | (3) provisions authorizing a minimum retirement or | 6 | | survivor's annuity or a supplemental annuity; | 7 | | (4) provisions authorizing any form of retirement | 8 | | annuity or survivor's annuity not authorized under this | 9 | | Section; | 10 | | (5) provisions authorizing a reversionary annuity; | 11 | | (6) provisions authorizing a refund of employee | 12 | | contributions upon termination of service or any lump-sum | 13 | | payout in lieu of a retirement or survivor's annuity; | 14 | | (7) provisions authorizing optional service credits or | 15 | | the payment of optional additional contributions; | 16 | | (8) a level income option. | 17 | | The Retirement Systems Reciprocal Act applies to | 18 | | participants in the cash balance plan who qualify under Article | 19 | | 20 of this Code, but it does not affect the calculation of | 20 | | benefits payable under this Section. | 21 | | The other provisions of the applicable Articles of this | 22 | | Code continue to apply to participants in the cash balance | 23 | | plan, to the extent that they do not conflict with this | 24 | | Section. In the case of a conflict between the provisions of | 25 | | this Section and any other provision of this Code, the | 26 | | provisions of this Section control. |
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| 1 | | (n) Rules. The Board of each retirement system affected by | 2 | | this Section may adopt rules and procedures for the | 3 | | implementation of this Section, including but not limited to | 4 | | determinations of how to integrate the administration of this | 5 | | Section with the Article under which the retirement system is | 6 | | established and any other applicable provisions of this Code. | 7 | | (o) The Public Pension Division of the Department of | 8 | | Insurance shall determine in October of each year the annual | 9 | | unadjusted percentage increase (but not less than zero) in the | 10 | | Consumer Price Index-U
for the 12 months ending with the | 11 | | preceding September. The Division shall certify its | 12 | | determination to the Board of each retirement system affected | 13 | | by this Section by November 1 of each year.
| 14 | | (40 ILCS 5/2-107.1 new) | 15 | | Sec. 2-107.1. Tier 2 participant. "Tier 2 participant" | 16 | | means a participant who first becomes a participant of this | 17 | | System on or after January 1, 2011 (the effective date of | 18 | | Public Act 96-889) but before July 1, 2013.
| 19 | | (40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
| 20 | | Sec. 2-108.1. Highest salary for annuity purposes.
| 21 | | (a) "Highest salary for annuity purposes" means whichever | 22 | | of
the following is applicable to the participant:
| 23 | | For a participant who first becomes a participant of this | 24 | | System before August 10, 2009 (the effective date of Public Act |
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| 1 | | 96-207):
| 2 | | (1) For a participant who is a member of the General | 3 | | Assembly on his
or her last day of service: the highest | 4 | | salary that is prescribed by law,
on the participant's last | 5 | | day of service, for a member of the General
Assembly who is | 6 | | not an officer; plus, if the participant was elected or
| 7 | | appointed to serve as an officer of the General Assembly | 8 | | for 2 or more
years and has made contributions as required | 9 | | under subsection (d) of
Section 2-126, the highest | 10 | | additional amount of compensation prescribed by
law, at the | 11 | | time of the participant's service as an officer, for | 12 | | members of
the General Assembly who serve in that office.
| 13 | | (2) For a participant who holds one of the State | 14 | | executive offices
specified in Section 2-105 on his or her | 15 | | last day of service: the highest
salary prescribed by law | 16 | | for service in that office on the participant's
last day of | 17 | | service.
| 18 | | (3) For a participant who is Clerk or Assistant Clerk | 19 | | of the House of Representatives or Secretary or Assistant | 20 | | Secretary of the Senate
on his or her last day of service: | 21 | | the salary received for service in that
capacity on the | 22 | | last day of service, but not to exceed the highest salary
| 23 | | (including additional compensation for service as an | 24 | | officer) that is
prescribed by law on the participant's | 25 | | last day of service for the highest
paid officer of the | 26 | | General Assembly.
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| 1 | | (4) For a participant who is a continuing participant | 2 | | under Section
2-117.1 on his or her last day of service: | 3 | | the salary received for service
in that capacity on the | 4 | | last day of service, but not to exceed the highest
salary | 5 | | (including additional compensation for service as an | 6 | | officer) that
is prescribed by law on the participant's | 7 | | last day of service for the
highest paid officer of the | 8 | | General Assembly.
| 9 | | For a participant who first becomes a participant of this | 10 | | System on or after August 10, 2009 (the effective date of | 11 | | Public Act 96-207) and before January 1, 2011 (the effective | 12 | | date of Public Act 96-889), the average monthly salary obtained | 13 | | by dividing the total salary of the participant during the | 14 | | period of: (1) the 48 consecutive months of service within the | 15 | | last 120 months of service in which the total compensation was | 16 | | the highest, or (2) the total period of service, if less than | 17 | | 48 months, by the number of months of service in that period. | 18 | | For a Tier 2 participant who first becomes a participant of | 19 | | this System on or after January 1, 2011 (the effective date of | 20 | | Public Act 96-889) , the average monthly salary obtained by | 21 | | dividing the total salary of the participant during the 96 | 22 | | consecutive months of service within the last 120 months of | 23 | | service in which the total compensation was the highest by the | 24 | | number of months of service in that period; however, beginning | 25 | | January 1, 2011, the highest salary for annuity purposes may | 26 | | not exceed $106,800, except that that amount shall annually |
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| 1 | | thereafter be increased by the lesser of (i) 3% of that amount, | 2 | | including all previous adjustments, or (ii) the annual | 3 | | unadjusted percentage increase (but not less than zero) in the | 4 | | consumer price index-u
for the 12 months ending with the | 5 | | September preceding each November 1. "Consumer price index-u" | 6 | | means
the index published by the Bureau of Labor Statistics of | 7 | | the United States
Department of Labor that measures the average | 8 | | change in prices of goods and
services purchased by all urban | 9 | | consumers, United States city average, all
items, 1982-84 = | 10 | | 100. The new amount resulting from each annual adjustment
shall | 11 | | be determined by the Public Pension Division of the Department | 12 | | of Insurance and made available to the Board by November 1 of | 13 | | each year. | 14 | | (b) The earnings limitations of subsection (a) apply to | 15 | | earnings
under any other participating system under the | 16 | | Retirement Systems Reciprocal
Act that are considered in | 17 | | calculating a proportional annuity under this
Article, except | 18 | | in the case of a person who first became a member of this
| 19 | | System before August 22,
1994.
| 20 | | (c) In calculating the subsection (a) earnings limitation | 21 | | to be applied to
earnings under any other participating system | 22 | | under the Retirement Systems
Reciprocal Act for the purpose of | 23 | | calculating a proportional annuity under this
Article, the | 24 | | participant's last day of service shall be deemed to mean the | 25 | | last
day of service in any participating system from which the | 26 | | person has applied
for a proportional annuity under the |
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| 1 | | Retirement Systems Reciprocal Act.
| 2 | | (Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11; | 3 | | 96-1490, eff. 1-1-11.)
| 4 | | (40 ILCS 5/2-119) (from Ch. 108 1/2, par. 2-119)
| 5 | | Sec. 2-119. Retirement annuity - conditions for | 6 | | eligibility. | 7 | | (a)
A participant whose service as a
member is terminated, | 8 | | regardless of age or cause, is entitled to a retirement
annuity | 9 | | beginning on the date specified by the participant in
a written | 10 | | application subject to the following conditions:
| 11 | | 1. The date the annuity begins does not precede
the | 12 | | date of final
termination of service, or is not more than | 13 | | 30 days before the receipt
of the application
by the board | 14 | | in the case of annuities based on disability or one year | 15 | | before
the receipt of the application in the case of | 16 | | annuities
based on attained age;
| 17 | | 2. The participant meets one of the following | 18 | | eligibility requirements: | 19 | | (i) For a participant who first becomes a participant | 20 | | of this System before January 1, 2011 (the effective date | 21 | | of Public Act 96-889):
| 22 | | (A) He or she has attained age 55 and has at least | 23 | | 8 years of service credit;
| 24 | | (B) He or she has attained age 62 and terminated | 25 | | service after July 1,
1971 with at least 4 years of |
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| 1 | | service credit; or
| 2 | | (C) He or she has completed 8 years of service and | 3 | | has become
permanently disabled and as a consequence, | 4 | | is unable to perform the duties
of his or her office.
| 5 | | (ii) For a Tier 2 participant who first becomes a | 6 | | participant of this System on or after January 1, 2011 (the | 7 | | effective date of Public Act 96-889) , he or she has | 8 | | attained age 67 and has at least 8 years of service credit. | 9 | | (a-5) A Tier 2 participant who first becomes a participant | 10 | | of this System on or after January 1, 2011 (the effective date | 11 | | of Public Act 96-889) who has attained age 62 and has at least | 12 | | 8 years of service credit may elect to receive the lower | 13 | | retirement annuity provided
in paragraph (c) of Section | 14 | | 2-119.01 of this Code. | 15 | | (b) A participant shall be considered permanently disabled | 16 | | only if:
(1) disability occurs while in service and is
of such | 17 | | a nature
as to prevent him or her from reasonably performing | 18 | | the duties of his
or her office at
the time; and (2) the board | 19 | | has received a written certificate by at
least 2 licensed | 20 | | physicians appointed by the board stating that the member is
| 21 | | disabled and that the disability is likely to be permanent.
| 22 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| 23 | | (40 ILCS 5/2-119.01) (from Ch. 108 1/2, par. 2-119.01)
| 24 | | Sec. 2-119.01. Retirement annuities - Amount.
| 25 | | (a) For a participant
in service after June 30, 1977 who |
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| 1 | | has not made contributions to this System
after January 1, | 2 | | 1982, the annual retirement annuity is 3% for each of the
first | 3 | | 8 years of service, plus 4% for each of the next 4 years of | 4 | | service,
plus 5% for each year of service in excess of 12 | 5 | | years, based on the
participant's highest salary for annuity | 6 | | purposes. The maximum
retirement annuity payable
shall be 80% | 7 | | of the participant's highest salary for
annuity purposes.
| 8 | | (b) For a participant in service after June 30, 1977 who | 9 | | has made
contributions to this System on or after January 1, | 10 | | 1982, the annual
retirement annuity is 3% for each of the first | 11 | | 4 years of service, plus 3
1/2% for each of the next 2 years of | 12 | | service, plus 4% for each of the next
2 years of service, plus | 13 | | 4 1/2% for each of the next 4 years of service,
plus 5% for each | 14 | | year of service in excess of 12 years, of the
participant's | 15 | | highest salary for annuity purposes. The maximum retirement
| 16 | | annuity payable shall be 85% of the participant's highest
| 17 | | salary for annuity purposes.
| 18 | | (c) Notwithstanding any other provision of this Article, | 19 | | for a Tier 2 participant who first becomes a participant on or | 20 | | after January 1, 2011 (the effective date of Public Act | 21 | | 96-889) , the annual
retirement annuity is 3% of the
| 22 | | participant's highest salary for annuity purposes for each year | 23 | | of service. The maximum retirement
annuity payable shall be 60% | 24 | | of the participant's highest
salary for annuity purposes. | 25 | | (d) Notwithstanding any other provision of this Article, | 26 | | for a Tier 2 participant who first becomes a participant on or |
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| 1 | | after January 1, 2011 (the effective date of Public Act 96-889) | 2 | | and who is retiring after attaining age 62 with at least 8 | 3 | | years of service credit, the retirement annuity shall be | 4 | | reduced by one-half
of 1% for each month that the member's age | 5 | | is under age 67. | 6 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| 7 | | (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
| 8 | | Sec. 2-119.1. Automatic increase in retirement annuity.
| 9 | | (a) A participant who retires after June 30, 1967, and who | 10 | | has not
received an initial increase under this Section before | 11 | | the effective date
of this amendatory Act of 1991, shall, in | 12 | | January or July next following
the first anniversary of | 13 | | retirement, whichever occurs first, and in the same
month of | 14 | | each year thereafter, but in no event prior to age 60, have the | 15 | | amount
of the originally granted retirement annuity increased | 16 | | as follows: for each
year through 1971, 1 1/2%; for each year | 17 | | from 1972 through 1979, 2%; and for
1980 and each year | 18 | | thereafter, 3%. Annuitants who have received an initial
| 19 | | increase under this subsection prior to the effective date of | 20 | | this amendatory
Act of 1991 shall continue to receive their | 21 | | annual increases in the same month
as the initial increase.
| 22 | | (b) Beginning January 1, 1990, for eligible participants | 23 | | who remain
in service after attaining 20 years of creditable | 24 | | service, the 3% increases
provided under subsection (a) shall | 25 | | begin to accrue on the January 1 next
following the date upon |
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| 1 | | which the participant (1) attains age 55, or (2)
attains 20 | 2 | | years of creditable service, whichever occurs later, and shall
| 3 | | continue to accrue while the participant remains in service; | 4 | | such increases
shall become payable on January 1 or July 1, | 5 | | whichever occurs first, next
following the first anniversary of | 6 | | retirement. For any person who has service
credit in the System | 7 | | for the entire period from January 15, 1969 through
December | 8 | | 31, 1992, regardless of the date of termination of service, the
| 9 | | reference to age 55 in clause (1) of this subsection (b) shall | 10 | | be deemed to
mean age 50.
| 11 | | This subsection (b) does not apply to any person who first | 12 | | becomes a
member of the System after the effective date of this | 13 | | amendatory Act of
the 93rd General Assembly.
| 14 | | (b-5) Notwithstanding any other provision of this Article, | 15 | | a Tier 2 participant who first becomes a participant on or | 16 | | after January 1, 2011 (the effective date of Public Act 96-889) | 17 | | shall, in January or July next following the first anniversary | 18 | | of retirement, whichever occurs first, and in the same month of | 19 | | each year thereafter, but in no event prior to age 67, have the | 20 | | amount of the retirement annuity then being paid increased by | 21 | | 3% or the annual unadjusted percentage increase in the Consumer | 22 | | Price Index for All Urban Consumers as determined by the Public | 23 | | Pension Division of the Department of Insurance under | 24 | | subsection (a) of Section 2-108.1, whichever is less. | 25 | | (c) The foregoing provisions relating to automatic | 26 | | increases are not
applicable to a participant who retires |
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| 1 | | before having made contributions
(at the rate prescribed in | 2 | | Section 2-126) for automatic increases for less
than the | 3 | | equivalent of one full year. However, in order to be eligible | 4 | | for
the automatic increases, such a participant may make | 5 | | arrangements to pay
to the system the amount required to bring | 6 | | the total contributions for the
automatic increase to the | 7 | | equivalent of one year's contributions based upon
his or her | 8 | | last salary.
| 9 | | (d) A participant who terminated service prior to July 1, | 10 | | 1967, with at
least 14 years of service is entitled to an | 11 | | increase in retirement annuity
beginning January, 1976, and to | 12 | | additional increases in January of each
year thereafter.
| 13 | | The initial increase shall be 1 1/2% of the originally | 14 | | granted retirement
annuity multiplied by the number of full | 15 | | years that the annuitant was in
receipt of such annuity prior | 16 | | to January 1, 1972, plus 2% of the originally
granted | 17 | | retirement annuity for each year after that date. The | 18 | | subsequent
annual increases shall be at the rate of 2% of the | 19 | | originally granted
retirement annuity for each year through | 20 | | 1979 and at the rate of 3% for
1980 and thereafter.
| 21 | | (e) Beginning January 1, 1990, all automatic annual | 22 | | increases payable
under this Section shall be calculated as a | 23 | | percentage of the total annuity
payable at the time of the | 24 | | increase, including previous increases granted
under this | 25 | | Article.
| 26 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
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| 1 | | (40 ILCS 5/2-121.1) (from Ch. 108 1/2, par. 2-121.1)
| 2 | | Sec. 2-121.1. Survivor's annuity - amount.
| 3 | | (a) A surviving spouse shall be entitled to 66 2/3% of the | 4 | | amount of
retirement annuity to which the participant or | 5 | | annuitant was entitled on
the date of death, without regard to | 6 | | whether the participant had attained
age 55 prior to his or her | 7 | | death, subject to a minimum payment of 10% of
salary. If a | 8 | | surviving spouse, regardless of age, has in his or her care
at | 9 | | the date of death any eligible child or children of the | 10 | | participant, the
survivor's annuity shall be the greater of the | 11 | | following: (1) 66 2/3% of
the amount of retirement annuity to | 12 | | which the participant or annuitant was
entitled on the date of | 13 | | death, or (2) 30% of the participant's salary
increased by 10% | 14 | | of salary on account of each such child, subject to a
total | 15 | | payment for the surviving spouse and children of 50% of salary. | 16 | | If
eligible children survive but there is no surviving spouse, | 17 | | or if the
surviving spouse dies or becomes disqualified by
| 18 | | remarriage while eligible children survive, each
eligible | 19 | | child shall be entitled to an annuity of 20% of salary, subject
| 20 | | to a maximum total payment for all such children of 50% of | 21 | | salary.
| 22 | | However, the survivor's annuity payable under this Section | 23 | | shall not be
less than 100% of the amount of retirement annuity | 24 | | to which the participant
or annuitant was entitled on the date | 25 | | of death, if he or she is survived by
a dependent disabled |
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| 1 | | child.
| 2 | | The salary to be used for determining these benefits shall | 3 | | be the
salary used for determining the amount of retirement | 4 | | annuity as provided
in Section 2-119.01.
| 5 | | (b) Upon the death of a participant after the termination | 6 | | of service or
upon death of an annuitant, the maximum total | 7 | | payment to a surviving spouse
and eligible children, or to | 8 | | eligible children alone if there is no surviving
spouse, shall | 9 | | be 75% of the retirement annuity to which the participant
or | 10 | | annuitant was entitled, unless there is a dependent disabled | 11 | | child
among the survivors.
| 12 | | (c) When a child ceases to be an eligible child, the | 13 | | annuity to that
child, or to the surviving spouse on account of | 14 | | that child, shall thereupon
cease, and the annuity payable to | 15 | | the surviving spouse or other eligible
children shall be | 16 | | recalculated if necessary.
| 17 | | Upon the ineligibility of the last eligible child, the | 18 | | annuity shall
immediately revert to the amount payable upon | 19 | | death of a participant or
annuitant who leaves no eligible | 20 | | children. If the surviving spouse is then
under age 50, the | 21 | | annuity as revised shall be deferred until the attainment
of | 22 | | age 50.
| 23 | | (d) Beginning January 1, 1990, every survivor's annuity | 24 | | shall be increased
(1) on each January 1 occurring on or after | 25 | | the commencement of the annuity if
the deceased member died | 26 | | while receiving a retirement annuity, or (2) in
other cases, on |
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| 1 | | each January 1 occurring on or after the first anniversary
of | 2 | | the commencement of the annuity, by an amount equal to 3% of | 3 | | the current
amount of the annuity, including any previous | 4 | | increases under this Article.
Such increases shall apply | 5 | | without regard to whether the deceased member
was in service on | 6 | | or after the effective date of this amendatory Act of
1991, but | 7 | | shall not accrue for any period prior to January 1, 1990.
| 8 | | (d-5) Notwithstanding any other provision of this Article, | 9 | | the initial survivor's annuity of a survivor of a Tier 2 | 10 | | participant who first becomes a participant on or after January | 11 | | 1, 2011 (the effective date of Public Act 96-889) shall be in | 12 | | the amount of 66 2/3% of the amount of the retirement annuity | 13 | | to which the participant or annuitant was entitled on the date | 14 | | of death and shall be increased (1) on each January 1 occurring | 15 | | on or after the commencement of the annuity if
the deceased | 16 | | member died while receiving a retirement annuity or (2) in
| 17 | | other cases, on each January 1 occurring on or after the first | 18 | | anniversary
of the commencement of the annuity, by an amount | 19 | | equal to 3% or the annual unadjusted percentage increase in the | 20 | | Consumer Price Index for All Urban Consumers as determined by | 21 | | the Public Pension Division of the Department of Insurance | 22 | | under subsection (a) of Section 2-108.1, whichever is less, of | 23 | | the survivor's annuity then being paid. | 24 | | (e) Notwithstanding any other provision of this Article, | 25 | | beginning
January 1, 1990, the minimum survivor's annuity | 26 | | payable to any person who
is entitled to receive a survivor's |
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| 1 | | annuity under this Article shall be
$300 per month, without | 2 | | regard to whether or not the deceased participant
was in | 3 | | service on the effective date of this amendatory Act of 1989.
| 4 | | (f) In the case of a proportional survivor's annuity | 5 | | arising under
the Retirement Systems Reciprocal Act where the | 6 | | amount payable by the
System on January 1, 1993 is less than | 7 | | $300 per month, the amount payable
by the System shall be | 8 | | increased beginning on that date by a monthly amount
equal to | 9 | | $2 for each full year that has expired since the annuity began.
| 10 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| 11 | | (40 ILCS 5/2-122) (from Ch. 108 1/2, par. 2-122)
| 12 | | Sec. 2-122. Re-entry after retirement. An annuitant who | 13 | | re-enters service as a member shall become a
participant on the | 14 | | date of re-entry and retirement annuity
payments shall cease at | 15 | | that time. The participant shall resume contributions
to the | 16 | | system on the date of re-entry at the rates then in effect and | 17 | | shall
begin to accrue additional service credit. He or she | 18 | | shall be entitled
to all rights
and privileges in the system, | 19 | | including death and disability benefits,
subject to the | 20 | | limitations herein provided, except refund of retirement
| 21 | | annuity contributions.
| 22 | | Upon subsequent retirement, the participant shall be | 23 | | entitled
to a retirement
annuity consisting of: (1) the amount | 24 | | of retirement annuity previously
granted and terminated by | 25 | | re-entry into service; and (2) the
amount of additional |
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| 1 | | retirement annuity earned during the
additional service based | 2 | | on the provisions in effect at the date of such subsequent
| 3 | | retirement. However, the total retirement annuity shall not
| 4 | | exceed the maximum retirement annuity applicable
at the date of | 5 | | the participant's last
retirement. If the salary
of the | 6 | | participant following the latest re-entry
into service is | 7 | | higher than
that in effect at the date of the previous | 8 | | retirement and the
participant
restores to the system all | 9 | | amounts previously received as
retirement annuity payments, | 10 | | upon subsequent
retirement, the retirement annuity shall be | 11 | | recalculated
for all service credited under the system as | 12 | | though the participant
had not previously retired.
| 13 | | The repayment of retirement annuity payments
must be made | 14 | | by
the participant in a single sum or by a withholding from
| 15 | | salary
within a period of 6 years from date of re-entry and in | 16 | | any event before
subsequent retirement. If previous annuity | 17 | | payments have not been repaid
to the system at the date of | 18 | | death of the participant,
any remaining
balance must be fully | 19 | | repaid to the system before any further annuity
shall be | 20 | | payable.
| 21 | | Such member, if unmarried at date of his last retirement, | 22 | | shall also
be entitled to a refund of widow's and widower's | 23 | | annuity contributions,
without interest, covering the period | 24 | | from the date of re-entry into
service to the date of last | 25 | | retirement.
| 26 | | Notwithstanding any other provision of this Article, if a |
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| 1 | | Tier 2 person who first becomes a participant under this System | 2 | | on or after January 1, 2011 (the effective date of Public Act | 3 | | 96-889) is receiving a retirement annuity under this Article | 4 | | and becomes a member or participant under this Article or any | 5 | | other Article of this Code and is employed on a full-time | 6 | | basis, then the person's retirement annuity under this System | 7 | | shall be suspended during that employment. Upon termination of | 8 | | that employment, the person's retirement annuity shall resume | 9 | | and, if appropriate, be recalculated under the applicable | 10 | | provisions of this Article. | 11 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| 12 | | (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
| 13 | | Sec. 2-126. Contributions by participants.
| 14 | | (a) Each participant shall contribute toward the cost of | 15 | | his or her
retirement annuity a percentage of each payment of | 16 | | salary received by him or
her for service as a member as | 17 | | follows: for service between October 31, 1947
and January 1, | 18 | | 1959, 5%; for service between January 1, 1959 and June 30, | 19 | | 1969,
6%; for service between July 1, 1969 and January 10, | 20 | | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for | 21 | | service after December 31, 1981, 8 1/2%.
| 22 | | (b) Beginning August 2, 1949, each male participant, and | 23 | | from July 1,
1971, each female participant shall contribute | 24 | | towards the cost of the
survivor's annuity 2% of salary.
| 25 | | A participant who has no eligible survivor's annuity |
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| 1 | | beneficiary may elect
to cease making contributions for | 2 | | survivor's annuity under this subsection.
A survivor's annuity | 3 | | shall not be payable upon the death of a person who has
made | 4 | | this election, unless prior to that death the election has been | 5 | | revoked
and the amount of the contributions that would have | 6 | | been paid under this
subsection in the absence of the election | 7 | | is paid to the System, together
with interest at the rate of 4% | 8 | | per year from the date the contributions
would have been made | 9 | | to the date of payment.
| 10 | | (c) Beginning July 1, 1967, each participant shall | 11 | | contribute 1% of
salary towards the cost of automatic increase | 12 | | in annuity provided in
Section 2-119.1. These contributions | 13 | | shall be made concurrently with
contributions for retirement | 14 | | annuity purposes.
| 15 | | (d) In addition, each participant serving as an officer of | 16 | | the General
Assembly shall contribute, for the same purposes | 17 | | and at the same rates
as are required of a regular participant, | 18 | | on each additional payment
received as an officer. If the | 19 | | participant serves as an
officer for at least 2 but less than 4 | 20 | | years, he or she shall
contribute an amount equal to the amount | 21 | | that would have been contributed
had the participant served as | 22 | | an officer for 4 years. Persons who serve
as officers in the | 23 | | 87th General Assembly but cannot receive the additional
payment | 24 | | to officers because of the ban on increases in salary during | 25 | | their
terms may nonetheless make contributions based on those | 26 | | additional payments
for the purpose of having the additional |
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| 1 | | payments included in their highest
salary for annuity purposes; | 2 | | however, persons electing to make these
additional | 3 | | contributions must also pay an amount representing the
| 4 | | corresponding employer contributions, as calculated by the | 5 | | System.
| 6 | | (e) Notwithstanding any other provision of this Article, | 7 | | the required contribution of a Tier 2 participant who first | 8 | | becomes a participant on or after January 1, 2011 shall not | 9 | | exceed the contribution that would be due under this Article if | 10 | | that participant's highest salary for annuity purposes were | 11 | | $106,800, plus any increases in that amount under Section | 12 | | 2-108.1. | 13 | | (Source: P.A. 96-1490, eff. 1-1-11.)
| 14 | | (40 ILCS 5/15-113.6) (from Ch. 108 1/2, par. 15-113.6)
| 15 | | Sec. 15-113.6. Service for employment in public schools. | 16 | | "Service for
employment in public schools": Includes
those | 17 | | periods not exceeding the lesser of 10 years or 2/3 of the | 18 | | service
granted under other Sections of this Article dealing | 19 | | with service credit,
during which a person who entered the | 20 | | system after September 1, 1974 was
employed full time by a | 21 | | public common school, public college and public
university, or | 22 | | by an agency or instrumentality of any of the foregoing,
of any | 23 | | state, territory, dependency or possession of the United States | 24 | | of
America, including the Philippine Islands, or a school
| 25 | | operated by or under
the auspices of any agency or department |
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| 1 | | of any other state, if the person
(1) cannot qualify for a | 2 | | retirement pension or other benefit based upon
employer
| 3 | | contributions from another retirement system, exclusive of | 4 | | federal social
security, based in whole or in part upon this | 5 | | employment, and (2) pays the
lesser of (A) an amount equal to | 6 | | 8% of his or her annual basic compensation
on the date of | 7 | | becoming a participating employee subsequent to this service
| 8 | | multiplied by the number of years of such service, together | 9 | | with compound
interest from the date participation begins to | 10 | | the date payment is received
by the board at the rate of 6% per | 11 | | annum through August 31, 1982, and at
the effective rates after | 12 | | that date, and (B) 50% of the actuarial value
of the increase | 13 | | in the retirement annuity provided by this service, and
(3) | 14 | | contributes for at least 5 years subsequent to this employment | 15 | | to one
or more of the following systems: the State Universities | 16 | | Retirement System,
the Teachers' Retirement System of the State | 17 | | of Illinois, and the Public
School Teachers' Pension and | 18 | | Retirement Fund of Chicago.
| 19 | | The service granted under this Section shall not be | 20 | | considered in determining
whether the person has the minimum | 21 | | number of 8 years of service required to qualify
for a | 22 | | retirement annuity at age 55 or the 5 years of service required | 23 | | to
qualify for a retirement annuity at age 62 , as provided in | 24 | | Section 15-135, or the 10 years required by subsection (c) of | 25 | | Section 1-160 for a person subject to that Section who first | 26 | | becomes a participant on or after January 1, 2011 .
The maximum |
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| 1 | | allowable service of 10 years for this governmental employment
| 2 | | shall be reduced by the service credit which is validated under | 3 | | paragraph
(2) of subsection (b) of Section 16-127 and paragraph | 4 | | 1 of Section 17-133.
| 5 | | (Source: P.A. 95-83, eff. 8-13-07; 96-1490, eff. 1-1-11.)
| 6 | | (40 ILCS 5/18-110.1 new) | 7 | | Sec. 18-110.1. Tier 2 participant. "Tier 2 participant" | 8 | | means a participant who first becomes a participant of this | 9 | | System on or after January 1, 2011 (the effective date of | 10 | | Public Act 96-889) but before July 1, 2013.
| 11 | | (40 ILCS 5/18-124) (from Ch. 108 1/2, par. 18-124)
| 12 | | Sec. 18-124. Retirement annuities - conditions for | 13 | | eligibility. | 14 | | (a) This subsection (a) applies to a participant who first | 15 | | serves as a judge before January 1, 2011 ( the effective date of | 16 | | Public Act 96-889) this amendatory Act of the 96th General | 17 | | Assembly . | 18 | | A
participant whose employment as a judge is terminated, | 19 | | regardless of age
or cause is entitled to a retirement annuity | 20 | | beginning on
the date specified in a written application | 21 | | subject to the
following:
| 22 | | (1) the date the annuity begins is subsequent
to the | 23 | | date of final
termination of employment, or the date 30 | 24 | | days prior to the receipt of
the application by the board |
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| 1 | | for annuities based on
disability, or one year before the | 2 | | receipt of the application by the
board for annuities based | 3 | | on attained age;
| 4 | | (2) the participant is at least age 55, or has
become | 5 | | permanently disabled and as
a consequence is unable to | 6 | | perform the duties of his or her office;
| 7 | | (3) the participant has at least 10 years of service
| 8 | | credit , except that a participant terminating service | 9 | | after June
30 1975, with at least 6 years of service | 10 | | credit, shall be entitled to
a retirement annuity at age 62 | 11 | | or over;
| 12 | | (4) the participant is not receiving or entitled
to | 13 | | receive, at the date of
retirement, any salary from an | 14 | | employer for service currently performed.
| 15 | | (b) This subsection (b) applies to a Tier 2 participant who | 16 | | first serves as a judge on or after the effective date of this | 17 | | amendatory Act of the 96th General Assembly . | 18 | | A Tier 2 participant who has at least 8 years of creditable | 19 | | service is
entitled to a retirement annuity when he or she has | 20 | | attained age 67. | 21 | | A Tier 2 participant member who has attained age 62 and has | 22 | | at least 8 years of service credit may elect to receive the | 23 | | lower retirement annuity provided
in subsection (d) of Section | 24 | | 18-125 of this Code. | 25 | | (Source: P.A. 96-889, eff. 1-1-11 .)
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| 1 | | (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
| 2 | | Sec. 18-125. Retirement annuity amount.
| 3 | | (a) The annual retirement annuity for a participant who | 4 | | terminated
service as a judge prior to July 1, 1971 shall be | 5 | | based on the law in
effect at the time of termination of | 6 | | service.
| 7 | | (b) Except as provided in subsection (b-5), effective July | 8 | | 1, 1971, the retirement annuity for any participant
in service | 9 | | on or after such date shall be 3 1/2% of final average salary,
| 10 | | as defined in this Section, for each of the first 10 years of | 11 | | service, and
5% of such final average salary for each year of | 12 | | service on excess of 10.
| 13 | | For purposes of this Section, final average salary for a | 14 | | participant who first serves as a judge before August 10, 2009 | 15 | | (the effective date of Public Act 96-207) shall be:
| 16 | | (1) the average salary for the last 4 years of credited | 17 | | service as a
judge for a participant who terminates service | 18 | | before July 1, 1975.
| 19 | | (2) for a participant who terminates service after June | 20 | | 30, 1975
and before July 1, 1982, the salary on the last | 21 | | day of employment as a judge.
| 22 | | (3) for any participant who terminates service after | 23 | | June 30, 1982 and
before January 1, 1990, the average | 24 | | salary for the final year of service as
a judge.
| 25 | | (4) for a participant who terminates service on or | 26 | | after January 1,
1990 but before the effective date of this |
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| 1 | | amendatory Act of 1995, the
salary on the last day of | 2 | | employment as a judge.
| 3 | | (5) for a participant who terminates service on or | 4 | | after the effective
date of this amendatory Act of 1995, | 5 | | the salary on the last day of employment
as a judge, or the | 6 | | highest salary received by the participant for employment | 7 | | as
a judge in a position held by the participant for at | 8 | | least 4 consecutive years,
whichever is greater.
| 9 | | However, in the case of a participant who elects to | 10 | | discontinue contributions
as provided in subdivision (a)(2) of | 11 | | Section 18-133, the time of such
election shall be considered | 12 | | the last day of employment in the determination
of final | 13 | | average salary under this subsection.
| 14 | | For a participant who first serves as a judge on or after | 15 | | August 10, 2009 (the effective date of Public Act 96-207) and | 16 | | before January 1, 2011 (the effective date of Public Act | 17 | | 96-889), final average salary shall be the average monthly | 18 | | salary obtained by dividing the total salary of the participant | 19 | | during the period of: (1) the 48 consecutive months of service | 20 | | within the last 120 months of service in which the total | 21 | | compensation was the highest, or (2) the total period of | 22 | | service, if less than 48 months, by the number of months of | 23 | | service in that period. | 24 | | The maximum retirement annuity for any participant shall be | 25 | | 85% of final
average salary.
| 26 | | (b-5) Notwithstanding any other provision of this Article, |
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| 1 | | for a Tier 2 participant who first serves as a judge on or | 2 | | after January 1, 2011 (the effective date of Public Act | 3 | | 96-889) , the annual
retirement annuity is 3% of the
| 4 | | participant's final average salary for each year of service. | 5 | | The maximum retirement
annuity payable shall be 60% of the | 6 | | participant's final average salary. | 7 | | For a Tier 2 participant who first serves as a judge on or | 8 | | after January 1, 2011 (the effective date of Public Act | 9 | | 96-889) , final average salary shall be the average monthly | 10 | | salary obtained by dividing the total salary of the judge | 11 | | during the 96 consecutive months of service within the last 120 | 12 | | months of service in which the total salary was the highest by | 13 | | the number of months of service in that period; however, | 14 | | beginning January 1, 2011, the annual salary may not exceed | 15 | | $106,800, except that that amount shall annually thereafter be | 16 | | increased by the lesser of (i) 3% of that amount, including all | 17 | | previous adjustments, or (ii) the annual unadjusted percentage | 18 | | increase (but not less than zero) in the consumer price index-u
| 19 | | for the 12 months ending with the September preceding each | 20 | | November 1. "Consumer price index-u" means
the index published | 21 | | by the Bureau of Labor Statistics of the United States
| 22 | | Department of Labor that measures the average change in prices | 23 | | of goods and
services purchased by all urban consumers, United | 24 | | States city average, all
items, 1982-84 = 100. The new amount | 25 | | resulting from each annual adjustment
shall be determined by | 26 | | the Public Pension Division of the Department of Insurance and |
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| 1 | | made available to the Board by November 1st of each year. | 2 | | (c) The retirement annuity for a participant who retires | 3 | | prior to age 60
with less than 28 years of service in the | 4 | | System shall be reduced 1/2 of 1%
for each month that the | 5 | | participant's age is under 60 years at the time the
annuity | 6 | | commences. However, for a participant who retires on or after | 7 | | the
effective date of this amendatory Act of the 91st General | 8 | | Assembly, the
percentage reduction in retirement annuity | 9 | | imposed under this subsection shall
be reduced by 5/12 of 1% | 10 | | for every month of service in this System in excess of
20 | 11 | | years, and therefore a participant with at least 26 years of | 12 | | service in this
System may retire at age 55 without any | 13 | | reduction in annuity.
| 14 | | The reduction in retirement annuity imposed by this | 15 | | subsection shall not
apply in the case of retirement on account | 16 | | of disability.
| 17 | | (d) Notwithstanding any other provision of this Article, | 18 | | for a Tier 2 participant who first serves as a judge on or | 19 | | after January 1, 2011 (the effective date of Public Act 96-889) | 20 | | and who is retiring after attaining age 62, the retirement | 21 | | annuity shall be reduced by 1/2
of 1% for each month that the | 22 | | participant's age is under age 67 at the time the annuity | 23 | | commences. | 24 | | (Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11; | 25 | | 96-1000, eff. 7-2-10; 96-1490, eff. 1-1-11.)
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| 1 | | (40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
| 2 | | Sec. 18-125.1. Automatic increase in retirement annuity. | 3 | | A participant who
retires from service after June 30, 1969, | 4 | | shall, in January of the year next
following the year in which | 5 | | the first anniversary of retirement occurs, and in
January of | 6 | | each year thereafter, have the amount of his or her originally
| 7 | | granted retirement annuity increased as follows: for each year | 8 | | up to and
including 1971, 1 1/2%; for each year from 1972 | 9 | | through 1979 inclusive, 2%; and
for 1980 and each year | 10 | | thereafter, 3%.
| 11 | | Notwithstanding any other provision of this Article, a | 12 | | retirement annuity for a Tier 2 participant who first serves as | 13 | | a judge on or after January 1, 2011 (the effective date of | 14 | | Public Act 96-889) shall be increased in January of the year | 15 | | next
following the year in which the first anniversary of | 16 | | retirement occurs, but in no event prior to age 67, and in
| 17 | | January of each year thereafter, by an amount equal to 3% or | 18 | | the annual percentage increase in the consumer price index-u as | 19 | | determined by the Public Pension Division of the Department of | 20 | | Insurance under subsection (b-5) of Section 18-125, whichever | 21 | | is less, of the retirement annuity then being paid. | 22 | | This Section is not applicable to a participant who retires | 23 | | before he
or she has made contributions at the rate prescribed | 24 | | in Section 18-133 for
automatic increases for not less than the | 25 | | equivalent of one full year, unless
such a participant arranges | 26 | | to pay the system the amount required to bring
the total |
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| 1 | | contributions for the automatic increase to the equivalent of
| 2 | | one year's contribution based upon his or her last year's | 3 | | salary.
| 4 | | This Section is applicable to all participants in service | 5 | | after June 30,
1969 unless a participant has elected, prior to | 6 | | September 1,
1969, in a written direction filed with the board | 7 | | not to be subject to
the provisions of this Section. Any | 8 | | participant in service on or after
July 1, 1992 shall have the | 9 | | option of electing prior to April 1, 1993,
in a written | 10 | | direction filed with the board, to be covered by the provisions | 11 | | of
the 1969 amendatory Act. Such participant shall be required | 12 | | to make the
aforesaid additional contributions with compound | 13 | | interest at 4% per annum.
| 14 | | Any participant who has become eligible to receive the | 15 | | maximum rate of
annuity and who resumes service as a judge | 16 | | after receiving a retirement
annuity under this Article shall | 17 | | have the amount of his or her
retirement annuity increased by | 18 | | 3% of the originally granted annuity amount
for each year of | 19 | | such resumed service, beginning in January of the year
next | 20 | | following the date of such resumed service, upon subsequent
| 21 | | termination of such resumed service.
| 22 | | Beginning January 1, 1990, all automatic annual increases | 23 | | payable
under this Section shall be calculated as a percentage | 24 | | of the total annuity
payable at the time of the increase, | 25 | | including previous increases granted
under this Article.
| 26 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
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| 1 | | (40 ILCS 5/18-127) (from Ch. 108 1/2, par. 18-127)
| 2 | | Sec. 18-127. Retirement annuity - suspension on | 3 | | reemployment.
| 4 | | (a) A participant receiving a retirement annuity who is | 5 | | regularly
employed for compensation by an employer other than a | 6 | | county, in any
capacity, shall have his or her retirement | 7 | | annuity payments suspended
during such employment. Upon | 8 | | termination of such employment, retirement
annuity payments at | 9 | | the previous rate shall be resumed.
| 10 | | If such a participant resumes service as a judge, he or she
| 11 | | shall receive credit for any additional service. Upon | 12 | | subsequent
retirement, his or her retirement annuity shall be | 13 | | the amount previously
granted, plus the amount earned by the | 14 | | additional judicial service under
the provisions in effect | 15 | | during the period of such additional service.
However, if the | 16 | | participant was receiving the maximum rate of annuity at
the | 17 | | time of re-employment, he or she may elect, in a written | 18 | | direction
filed with the board, not to receive any additional | 19 | | service credit during
the period of re-employment. In such | 20 | | case, contributions shall not be
required during the period of | 21 | | re-employment. Any such election shall be
irrevocable.
| 22 | | (b) Beginning January 1, 1991, any participant receiving a | 23 | | retirement
annuity who accepts temporary employment from an | 24 | | employer other than a
county for a period not exceeding 75 | 25 | | working days in any calendar year
shall not be deemed to be |
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| 1 | | regularly employed for compensation or to have
resumed service | 2 | | as a judge for the purposes of this Article. A day shall
be | 3 | | considered a working day if the annuitant performs on it any of | 4 | | his
duties under the temporary employment agreement.
| 5 | | (c) Except as provided in subsection (a), beginning January | 6 | | 1, 1993,
retirement annuities shall not be subject to | 7 | | suspension upon resumption of
employment for an employer, and | 8 | | any retirement annuity that is then so
suspended shall be | 9 | | reinstated on that date.
| 10 | | (d) The changes made in this Section by this amendatory Act | 11 | | of 1993
shall apply to judges no longer in service on its | 12 | | effective date, as well as to
judges serving on or after that | 13 | | date.
| 14 | | (e) A participant receiving a retirement
annuity under this | 15 | | Article who serves as a part-time employee in any of the | 16 | | following positions: Legislative Inspector General, Special | 17 | | Legislative Inspector General, employee of the Office of the | 18 | | Legislative Inspector General, Executive Director of the | 19 | | Legislative Ethics Commission, or staff of the Legislative | 20 | | Ethics Commission, but has not elected to participate in the | 21 | | Article 14 System with respect to that service, shall not be | 22 | | deemed to be regularly employed for compensation by an employer | 23 | | other than a county, nor to have
resumed service as a judge, on | 24 | | the basis of that service, and the retirement annuity payments | 25 | | and other benefits of that person under this Code shall not be | 26 | | suspended, diminished, or otherwise impaired solely as a |
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| 1 | | consequence of that service. This subsection (e) applies | 2 | | without regard to whether the person is in service as a judge | 3 | | under this Article on or after the effective date of this | 4 | | amendatory Act of the 93rd General Assembly. In this | 5 | | subsection, a "part-time employee" is a person who is not | 6 | | required to work at least 35 hours per week.
| 7 | | (f) A participant receiving a retirement annuity under this | 8 | | Article who has made an election under Section 1-123 and who is | 9 | | serving either as legal counsel in the Office of the Governor | 10 | | or as Chief Deputy Attorney General shall not be deemed to be | 11 | | regularly employed for compensation by an employer other than a | 12 | | county, nor to have resumed service as a judge, on the basis of | 13 | | that service, and the retirement annuity payments and other | 14 | | benefits of that person under this Code shall not be suspended, | 15 | | diminished, or otherwise impaired solely as a consequence of | 16 | | that service. This subsection (f) applies without regard to | 17 | | whether the person is in service as a judge under this Article | 18 | | on or after the effective date of this amendatory Act of the | 19 | | 93rd General Assembly.
| 20 | | (g) Notwithstanding any other provision of this Article, if | 21 | | a person who was a Tier 2 first becomes a participant under | 22 | | this System on or after January 1, 2011 (the effective date of | 23 | | this amendatory Act of the 96th General Assembly) is receiving | 24 | | a retirement annuity under this Article and becomes a member or | 25 | | participant under this Article or any other Article of this | 26 | | Code and is employed on a full-time basis, then the person's |
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| 1 | | retirement annuity under this System shall be suspended during | 2 | | that employment. Upon termination of that employment, the | 3 | | person's retirement annuity shall resume and, if appropriate, | 4 | | be recalculated under the applicable provisions of this | 5 | | Article. | 6 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| 7 | | (40 ILCS 5/18-128.01) (from Ch. 108 1/2, par. 18-128.01)
| 8 | | Sec. 18-128.01. Amount of survivor's annuity.
| 9 | | (a) Upon the death of
an annuitant, his or her surviving | 10 | | spouse shall be entitled to a survivor's
annuity of 66 2/3% of | 11 | | the annuity the annuitant was receiving immediately
prior to | 12 | | his or her death, inclusive of annual increases in the | 13 | | retirement
annuity to the date of death.
| 14 | | (b) Upon the death of an active participant, his or her | 15 | | surviving spouse
shall receive a survivor's annuity of 66 2/3% | 16 | | of the annuity earned by the
participant as of the date of his | 17 | | or her death, determined without regard
to whether the | 18 | | participant had attained age 60 as of that time, or 7 1/2%
of | 19 | | the last salary of the decedent, whichever is greater.
| 20 | | (c) Upon the death of a participant who had terminated | 21 | | service with at
least 10 years of service, his or her surviving | 22 | | spouse shall be entitled
to a survivor's annuity of 66 2/3% of | 23 | | the annuity earned by the deceased
participant at the date of | 24 | | death.
| 25 | | (d) Upon the death of an annuitant, active participant, or |
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| 1 | | participant
who had terminated service with at least 10 years | 2 | | of service, each surviving
child under the age of 18 or | 3 | | disabled as defined in Section 18-128 shall
be entitled to a | 4 | | child's annuity in an amount equal to 5% of the decedent's
| 5 | | final salary, not to exceed in total for all such children the | 6 | | greater of
20% of the decedent's last salary or 66 2/3% of the | 7 | | annuity received or
earned by the decedent as provided under | 8 | | subsections (a) and (b) of this
Section. This child's annuity | 9 | | shall be paid whether or not a survivor's
annuity was elected | 10 | | under Section 18-123.
| 11 | | (e) The changes made in the survivor's annuity provisions | 12 | | by Public Act
82-306 shall apply to the survivors of a deceased | 13 | | participant or annuitant
whose death occurs on or after August | 14 | | 21, 1981.
| 15 | | (f) Beginning January 1, 1990, every survivor's annuity | 16 | | shall be
increased
(1) on each January 1 occurring on or after | 17 | | the commencement of the annuity if
the deceased member died | 18 | | while receiving a retirement annuity, or (2) in other cases,
on | 19 | | each January 1 occurring on or after the first anniversary of
| 20 | | the commencement of the annuity, by an amount equal to 3% of | 21 | | the current
amount of the annuity, including any previous | 22 | | increases under this Article.
Such increases shall apply | 23 | | without regard to whether the deceased member
was in service on | 24 | | or after the effective date of this amendatory Act of
1991, but | 25 | | shall not accrue for any period prior to January 1, 1990.
| 26 | | (g) Notwithstanding any other provision of this Article, |
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| 1 | | the initial survivor's annuity for a survivor of a Tier 2 | 2 | | participant who first serves as a judge after January 1, 2011 | 3 | | (the effective date of Public Act 96-889) shall be in the | 4 | | amount of 66 2/3% of the annuity received or earned by the | 5 | | decedent, and shall be increased (1) on each January 1 | 6 | | occurring on or after the commencement of the annuity if
the | 7 | | deceased participant died while receiving a retirement | 8 | | annuity, or (2) in other cases,
on each January 1 occurring on | 9 | | or after the first anniversary of
the commencement of the | 10 | | annuity, but in no event prior to age 67, by an amount equal to | 11 | | 3% or the annual unadjusted percentage increase in the consumer | 12 | | price index-u as determined by the Public Pension Division of | 13 | | the Department of Insurance under subsection (b-5) of Section | 14 | | 18-125, whichever is less, of the survivor's annuity then being | 15 | | paid. | 16 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| 17 | | (40 ILCS 5/18-133) (from Ch. 108 1/2, par. 18-133)
| 18 | | Sec. 18-133. Financing; employee contributions.
| 19 | | (a) Effective July 1, 1967, each participant is required to | 20 | | contribute
7 1/2% of each payment of salary toward the | 21 | | retirement annuity. Such
contributions shall continue during | 22 | | the entire time the participant is in
service, with the | 23 | | following exceptions:
| 24 | | (1) Contributions for the retirement annuity are not | 25 | | required on salary
received after 18 years of service by |
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| 1 | | persons who were participants before
January 2, 1954.
| 2 | | (2) A participant who continues to serve as a judge | 3 | | after becoming
eligible to receive the maximum rate of | 4 | | annuity may elect, through a written
direction filed with | 5 | | the Board, to discontinue contributing to the System.
Any | 6 | | such option elected by a judge shall be irrevocable unless | 7 | | prior to
January 1, 2000, and while continuing to
serve as | 8 | | judge, the judge (A) files with the Board a letter | 9 | | cancelling the
direction to discontinue contributing to | 10 | | the System and requesting that such
contributing resume, | 11 | | and (B) pays into the System an amount equal to the total
| 12 | | of the discontinued contributions plus interest thereon at | 13 | | 5% per annum.
Service credits earned in any other | 14 | | "participating system" as defined in
Article 20 of this | 15 | | Code shall be considered for purposes of determining a
| 16 | | judge's eligibility to discontinue contributions under | 17 | | this subdivision
(a)(2).
| 18 | | (3) A participant who (i) has attained age 60, (ii) | 19 | | continues to serve
as a judge after becoming eligible to | 20 | | receive the maximum rate of annuity,
and (iii) has not | 21 | | elected to discontinue contributing to the System under
| 22 | | subdivision (a)(2) of this Section (or has revoked any such | 23 | | election) may
elect, through a written direction filed with | 24 | | the Board, to make contributions
to the System based only | 25 | | on the amount of the increases in salary received by
the | 26 | | judge on or after the date of the election, rather than the |
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| 1 | | total salary
received. If a judge who is making | 2 | | contributions to the System on the
effective date of this | 3 | | amendatory Act of the 91st General Assembly makes an
| 4 | | election to limit contributions under this subdivision | 5 | | (a)(3) within 90 days
after that effective date, the | 6 | | election shall be deemed to become
effective on that | 7 | | effective date and the judge shall be entitled to receive a
| 8 | | refund of any excess contributions paid to the System | 9 | | during that 90-day
period; any other election under this | 10 | | subdivision (a)(3) becomes effective
on the first of the | 11 | | month following the date of the election. An election to
| 12 | | limit contributions under this subdivision (a)(3) is | 13 | | irrevocable. Service
credits earned in any other | 14 | | participating system as defined in Article 20 of
this Code | 15 | | shall be considered for purposes of determining a judge's | 16 | | eligibility
to make an election under this subdivision | 17 | | (a)(3).
| 18 | | (b) Beginning July 1, 1969, each participant is required to | 19 | | contribute
1% of each payment of salary towards the automatic | 20 | | increase in annuity
provided in Section 18-125.1. However, such | 21 | | contributions need not be made
by any participant who has | 22 | | elected prior to September 15, 1969, not to be
subject to the | 23 | | automatic increase in annuity provisions.
| 24 | | (c) Effective July 13, 1953, each married participant | 25 | | subject to the
survivor's annuity provisions is required to | 26 | | contribute 2 1/2% of each
payment of salary, whether or not he |
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| 1 | | or she is required to make any other
contributions under this | 2 | | Section. Such contributions shall be made
concurrently with the | 3 | | contributions made for annuity purposes.
| 4 | | (d) Notwithstanding any other provision of this Article, | 5 | | the required contributions for a Tier 2 participant who first | 6 | | becomes a participant on or after January 1, 2011 shall not | 7 | | exceed the contributions that would be due under this Article | 8 | | if that participant's highest salary for annuity purposes were | 9 | | $106,800, plus any increase in that amount under Section | 10 | | 18-125. | 11 | | (Source: P.A. 96-1490, eff. 1-1-11.)
| 12 | | (40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)
| 13 | | Sec. 20-121. Calculation of proportional retirement | 14 | | annuities. Upon
retirement of the employee, a proportional | 15 | | retirement annuity shall be computed
by each participating | 16 | | system in which pension credit has been established on
the | 17 | | basis of pension credits under each system. The computation | 18 | | shall be in
accordance with the formula or method prescribed by | 19 | | each participating system
which is in effect at the date of the | 20 | | employee's latest withdrawal from service
covered by any of the | 21 | | systems in which he has pension credits which he elects
to have | 22 | | considered under this Article. However, (1) the amount of any | 23 | | retirement
annuity payable under the self-managed plan | 24 | | established under Section 15-158.2
of this Code depends solely | 25 | | on the value of the participant's vested account
balances and |
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| 1 | | is not subject to any proportional adjustment under this
| 2 | | Section , and (2) the amount of any retirement
annuity payable | 3 | | under the cash balance plan established under Section 1-161
of | 4 | | this Code shall be calculated solely in accordance with that | 5 | | Section and is not subject to any proportional adjustment under | 6 | | this
Section .
| 7 | | Combined pension credit under all retirement systems | 8 | | subject to this
Article shall be considered in determining | 9 | | whether the minimum qualification
has been met and the formula | 10 | | or method of computation which shall be applied.
If a system | 11 | | has a step-rate formula for calculation of the retirement | 12 | | annuity,
pension credits covering previous service which have | 13 | | been established under
another system shall be considered in | 14 | | determining which range or ranges of
the step-rate formula are | 15 | | to be applicable to the employee.
| 16 | | Interest on pension credit shall continue to accumulate in | 17 | | accordance with
the provisions of the law governing the | 18 | | retirement system in which the same
has been established during | 19 | | the time an employee is in the service of another
employer, on | 20 | | the assumption such employee, for interest purposes for pension
| 21 | | credit, is continuing in the service covered by such retirement | 22 | | system.
| 23 | | (Source: P.A. 91-887, eff. 7-6-00.)
| 24 | | (40 ILCS 5/20-123) (from Ch. 108 1/2, par. 20-123)
| 25 | | Sec. 20-123. Survivor's annuity. The provisions governing |
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| 1 | | a retirement
annuity shall be applicable to a survivor's | 2 | | annuity. Appropriate credits shall
be established for | 3 | | survivor's annuity purposes in those participating systems
| 4 | | which provide survivor's annuities, according to the same | 5 | | conditions and
subject to the same limitations and restrictions | 6 | | herein prescribed for a
retirement annuity. If a participating | 7 | | system has no survivor's annuity
benefit, or if the survivor's | 8 | | annuity benefit under that system is waived,
pension credit | 9 | | established in that system shall not be considered
in | 10 | | determining eligibility for or the amount of the survivor's | 11 | | annuity which
may be payable by any other participating system.
| 12 | | For persons who participate in the self-managed plan | 13 | | established under
Section 15-158.2 or the portable benefit | 14 | | package established under Section
15-136.4, pension credit | 15 | | established under Article 15 may be considered in
determining | 16 | | eligibility for or the amount of the survivor's annuity that is
| 17 | | payable by any other participating system, but pension credit | 18 | | established in
any other system shall not result in any right | 19 | | to a survivor's annuity under
the Article 15 system.
| 20 | | For persons who participate in the cash balance plan | 21 | | established under
Section 1-161, pension credit established | 22 | | under the participating system with respect to which the person | 23 | | participates in the cash balance plan may be considered in
| 24 | | determining eligibility for or the amount of the survivor's | 25 | | annuity that is
payable by any other participating system with | 26 | | respect to which the person does not participate in the cash |
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| 1 | | balance plan, but the amount of any survivor's
annuity payable | 2 | | under the cash balance plan established under Section 1-161 | 3 | | shall be calculated solely in accordance with that Section. | 4 | | (Source: P.A. 91-887, eff. 7-6-00.)
| 5 | | (40 ILCS 5/20-124) (from Ch. 108 1/2, par. 20-124)
| 6 | | Sec. 20-124. Maximum benefits. | 7 | | (a) In no event shall the combined retirement
or survivors | 8 | | annuities exceed the highest annuity which would have been | 9 | | payable
by any participating system in which the employee has | 10 | | pension credits, if all
of his pension credits had been | 11 | | validated in that system.
| 12 | | If the combined annuities should exceed the highest maximum | 13 | | as determined
in accordance with this Section, the respective | 14 | | annuities shall be reduced
proportionately according to the | 15 | | ratio which the amount of each proportional
annuity bears to | 16 | | the aggregate of all such annuities ; except that benefits | 17 | | payable under the cash balance plan established under Section | 18 | | 1-161 are not subject to
proportionate reduction under this | 19 | | Section .
| 20 | | (b) In the case of a participant in the self-managed plan | 21 | | established under
Section 15-158.2 of this Code to whom the | 22 | | provisions of this Article apply:
| 23 | | (i) For purposes of calculating the combined | 24 | | retirement annuity and
the proportionate reduction, if | 25 | | any, in a retirement annuity other than one
payable under |
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| 1 | | the self-managed plan, the amount of the Article 15 | 2 | | retirement
annuity shall be deemed to be the highest | 3 | | annuity to which the annuitant would
have been entitled if | 4 | | he or she had participated in the traditional benefit
| 5 | | package as defined in Section 15-103.1 rather than the | 6 | | self-managed plan.
| 7 | | (ii) For purposes of calculating the combined | 8 | | survivor's annuity and
the proportionate reduction, if | 9 | | any, in a survivor's annuity other than one
payable under | 10 | | the self-managed plan, the amount of the Article 15 | 11 | | survivor's
annuity shall be deemed to be the highest | 12 | | survivor's annuity to which the
survivor would have been | 13 | | entitled if the deceased employee had participated in
the | 14 | | traditional benefit package as defined in Section 15-103.1 | 15 | | rather than the
self-managed plan.
| 16 | | (iii) Benefits payable under the self-managed plan are | 17 | | not subject to
proportionate reduction under this Section.
| 18 | | (Source: P.A. 91-887, eff. 7-6-00.)
| 19 | | (40 ILCS 5/20-125) (from Ch. 108 1/2, par. 20-125)
| 20 | | Sec. 20-125. Return to employment - suspension of benefits. | 21 | | If a retired
employee returns to employment which is covered by | 22 | | a system from which he is
receiving a proportional annuity | 23 | | under this Article, his proportional annuity
from all | 24 | | participating systems shall be suspended during the period of
| 25 | | re-employment, except that this suspension does not apply to |
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| 1 | | any
distributions payable under the self-managed plan | 2 | | established under Section
15-158.2 of this Code.
| 3 | | The provisions of the Article under which such employment | 4 | | would be
covered (including Section 1-161 in the case of a | 5 | | participant in the cash balance plan) shall govern the | 6 | | determination of whether the employee has returned
to | 7 | | employment, and if applicable the exemption of temporary | 8 | | employment or
employment not exceeding a specified duration or | 9 | | frequency, for all
participating systems from which the retired | 10 | | employee is receiving a
proportional annuity under this | 11 | | Article, notwithstanding any contrary
provisions in the other | 12 | | Articles governing such systems.
| 13 | | (Source: P.A. 91-887, eff. 7-6-00.)
| 14 | | Section 90. The State Mandates Act is amended by adding | 15 | | Section 8.36 as follows: | 16 | | (30 ILCS 805/8.36 new) | 17 | | Sec. 8.36. Exempt mandate. Notwithstanding Sections 6 and 8 | 18 | | of this Act, no reimbursement by the State is required for the | 19 | | implementation of any mandate created by this amendatory Act of | 20 | | the 97th General Assembly.
| 21 | | Section 99. Effective date. This Act takes effect January | 22 | | 1, 2013.
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| 1 | |
INDEX
| 2 | |
Statutes amended in order of appearance
| | 3 | | 40 ILCS 5/1-160 | | | 4 | | 40 ILCS 5/1-161 new | | | 5 | | 40 ILCS 5/2-107.1 new | | | 6 | | 40 ILCS 5/2-108.1 | from Ch. 108 1/2, par. 2-108.1 | | 7 | | 40 ILCS 5/2-119 | from Ch. 108 1/2, par. 2-119 | | 8 | | 40 ILCS 5/2-119.01 | from Ch. 108 1/2, par. 2-119.01 | | 9 | | 40 ILCS 5/2-119.1 | from Ch. 108 1/2, par. 2-119.1 | | 10 | | 40 ILCS 5/2-121.1 | from Ch. 108 1/2, par. 2-121.1 | | 11 | | 40 ILCS 5/2-122 | from Ch. 108 1/2, par. 2-122 | | 12 | | 40 ILCS 5/2-126 | from Ch. 108 1/2, par. 2-126 | | 13 | | 40 ILCS 5/15-113.6 | from Ch. 108 1/2, par. 15-113.6 | | 14 | | 40 ILCS 5/18-110.1 new | | | 15 | | 40 ILCS 5/18-124 | from Ch. 108 1/2, par. 18-124 | | 16 | | 40 ILCS 5/18-125 | from Ch. 108 1/2, par. 18-125 | | 17 | | 40 ILCS 5/18-125.1 | from Ch. 108 1/2, par. 18-125.1 | | 18 | | 40 ILCS 5/18-127 | from Ch. 108 1/2, par. 18-127 | | 19 | | 40 ILCS 5/18-128.01 | from Ch. 108 1/2, par. 18-128.01 | | 20 | | 40 ILCS 5/18-133 | from Ch. 108 1/2, par. 18-133 | | 21 | | 40 ILCS 5/20-121 | from Ch. 108 1/2, par. 20-121 | | 22 | | 40 ILCS 5/20-123 | from Ch. 108 1/2, par. 20-123 | | 23 | | 40 ILCS 5/20-124 | from Ch. 108 1/2, par. 20-124 | | 24 | | 40 ILCS 5/20-125 | from Ch. 108 1/2, par. 20-125 | | 25 | | 30 ILCS 805/8.36 new | |
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