Illinois General Assembly - Illinois Compiled Statutes

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40 ILCS 5/20-121

(40 ILCS 5/20-121) (from Ch. 108 1/2, par. 20-121)

(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)

Sec. 20-121. Calculation of proportional retirement annuities.

(a) Upon
retirement of the employee, a proportional retirement annuity shall be computed
by each participating system in which pension credit has been established on
the basis of pension credits under each system.  The computation shall be in
accordance with the formula or method prescribed by each participating system
which is in effect at the date of the employee's latest withdrawal from service
covered by any of the systems in which he has pension credits which he elects
to have considered under this Article.  However, the amount of any retirement
annuity payable under the self-managed plan established under Section 15-158.2
of this Code or under the defined contribution plan established under Article 2, 14, 15, or 16 of this Code depends solely on the value of the participant's vested account
balances and is not subject to any proportional adjustment under this
Section.

(a-5) For persons who participate in  a defined contribution plan established under Article 2, 14, 15, or 16 of this Code to whom the provisions of this Article apply, the pension credits established under the defined contribution plan may be considered in
determining eligibility for or the amount of the defined benefit retirement annuity that is
payable by any other participating system.

(b) Combined pension credit under all retirement systems subject to this
Article shall be considered in determining whether the minimum qualification
has been met and the formula or method of computation which shall be applied, except as may be otherwise provided with respect to vesting in State or employer contributions in a defined contribution plan.
If a system has a step-rate formula for calculation of the retirement annuity,
pension credits covering previous service which have been established under
another system shall be considered in determining which range or ranges of
the step-rate formula are to be applicable to the employee.

(c) Interest on pension credit shall continue to accumulate in accordance with
the provisions of the law governing the retirement system in which the same
has been established during the time an employee is in the service of another
employer, on the assumption such employee, for interest purposes for pension
credit, is continuing in the service covered by such retirement system.

(Source: P.A. 98-599, eff. 6-1-14.)

(Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)

Sec. 20-121.

Calculation of proportional retirement annuities.

Upon
retirement of the employee, a proportional retirement annuity shall be computed
by each participating system in which pension credit has been established on
the basis of pension credits under each system.  The computation shall be in
accordance with the formula or method prescribed by each participating system
which is in effect at the date of the employee's latest withdrawal from service
covered by any of the systems in which he has pension credits which he elects
to have considered under this Article.  However, the amount of any retirement
annuity payable under the self-managed plan established under Section 15-158.2
of this Code depends solely on the value of the participant's vested account
balances and is not subject to any proportional adjustment under this
Section.

Combined pension credit under all retirement systems subject to this
Article shall be considered in determining whether the minimum qualification
has been met and the formula or method of computation which shall be applied.
If a system has a step-rate formula for calculation of the retirement annuity,
pension credits covering previous service which have been established under
another system shall be considered in determining which range or ranges of
the step-rate formula are to be applicable to the employee.

Interest on pension credit shall continue to accumulate in accordance with
the provisions of the law governing the retirement system in which the same
has been established during the time an employee is in the service of another
employer, on the assumption such employee, for interest purposes for pension
credit, is continuing in the service covered by such retirement system.

(Source: P.A. 91-887, eff. 7-6-00.)