Illinois General Assembly - Illinois Compiled Statutes

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40 ILCS 5/8-137

(40 ILCS 5/8-137)

(from Ch. 108 1/2, par. 8-137)

Sec. 8-137. Automatic increase in annuity.

(a) An employee who retired or retires from service after December 31,
1959 and before January 1, 1987, having attained age 60 or more, shall,
in January of the year
after the year in which the first anniversary of retirement occurs, have
the amount of his then fixed and payable monthly annuity increased by 1
1/2%, and such first fixed annuity as granted at retirement increased by
a further 1 1/2% in January of each year thereafter.  Beginning with
January of the year 1972, such increases shall be at the rate of 2% in
lieu of the aforesaid specified 1 1/2%, and beginning with January of the
year 1984 such increases shall be at the rate of 3%.
Beginning in January of 1999, such increases
shall be at the rate of 3% of the currently payable monthly annuity,
including any increases previously granted under this Article.  An
employee who retires on annuity after December 31, 1959 and before
January 1, 1987, but before age 60, shall receive such
increases beginning in January of the year after the year
in which he attains age 60.

An employee who retires from service on or after January 1, 1987 shall, upon
the first annuity payment date following the first anniversary of the date of
retirement, or upon the first annuity payment date following attainment of age
60, whichever occurs later, have his then fixed and payable monthly annuity
increased by 3%, and such annuity shall be increased by an additional 3% of the
original fixed annuity on the same date each year thereafter.  Beginning in
January of 1999, such increases shall be at the rate of 3% of the currently
payable monthly annuity, including any increases previously granted under this
Article.

(a-5) Notwithstanding the provisions of subsection (a), upon the first
annuity payment date following (1) the third anniversary of retirement, (2)
the attainment of age 53, or (3) January 1, 2002, whichever
occurs latest,
the
monthly annuity of an employee who retires on annuity prior to the attainment
of age 60 and has not received an increase under subsection (a) shall
be
increased by 3%, and the annuity shall be increased by an additional
3% of the
current payable monthly annuity, including any
increases previously
granted
under this Article, on the same date each year thereafter.  The increases
provided under this subsection are in lieu of the increases provided in
subsection (a).

(a-6) Notwithstanding the provisions of subsections (a) and (a-5), for all
calendar years following the year in which this amendatory Act of the 93rd
General Assembly takes effect, an increase in annuity under this Section that
would otherwise take effect at any time during the year shall instead take
effect in January of that year.

(b) Subsections (a), (a-5), and (a-6) are not
applicable to an employee retiring
and receiving a term annuity, as herein defined, nor to any otherwise
qualified employee who retires before he makes employee contributions (at
the 1/2 of 1% rate as provided in this Act) for this additional
annuity for not less than the equivalent of one full year.  Such
employee, however, shall make arrangement to pay to the fund a balance
of such 1/2 of 1% contributions, based on his final salary, as will
bring such 1/2 of 1% contributions, computed without interest, to the
equivalent of or completion of one year's contributions.

Beginning with January, 1960, each employee shall contribute by means of
salary deductions 1/2 of 1% of each salary payment, concurrently with
and in addition to the employee contributions otherwise made for annuity
purposes.

Each such additional contribution shall be credited to an account in
the prior service annuity reserve, to be used, together with city
contributions, to defray the cost of the specified annuity increments.
Any balance in such account at the beginning of each calendar year shall
be credited with interest at the rate of 3% per annum.

Such additional employee contributions are not refundable, except to
an employee who withdraws and applies for refund under this Article, and
in cases where a term annuity becomes payable. In such cases his
contributions shall be refunded, without interest, and charged to such
account in the prior service annuity reserve.

(Source: P.A. 103-443, eff. 8-4-23.)