State of Illinois
91st General Assembly
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91_SB1254

 
                                               LRB9107773LDsb

 1        AN  ACT in relation to public employee pensions, amending
 2    named Acts.

 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:

 5        Section  5.   The  Illinois  Pension  Code  is amended by
 6    changing Sections 14-114, 14-119, 14-121,  15-136,  15-136.3,
 7    15-145, 16-133.1, 16-143.1, 17-119, and 17-122 as follows:

 8        (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
 9        Sec. 14-114.  Automatic increase in retirement annuity.
10        (a)  Any person receiving a retirement annuity under this
11    Article  who  retires  having attained age 60, or who retires
12    before age 60 having at least 35 years of creditable service,
13    shall on January 1, next following the  first  full  year  of
14    retirement,  have  the  amount  of the then fixed and payable
15    monthly  retirement  annuity  increased   3%.    Any   person
16    receiving a retirement annuity under this Article who retires
17    before  attainment  of  age 60 and with less than 35 years of
18    creditable service shall have the amount  of  the  fixed  and
19    payable  retirement  annuity increased by 3% on the January 1
20    occurring on or next following (1) attainment of age  60,  or
21    (2)  the  first  anniversary  of retirement, whichever occurs
22    later.  However, for  persons  who  receive  the  alternative
23    retirement  annuity  under Section 14-110, references in this
24    subsection (a) to attainment of age 60  shall  be  deemed  to
25    refer  to attainment of age 55.  For a person receiving early
26    retirement incentives under Section 14-108.3 whose retirement
27    annuity began after January 1, 1992 pursuant to an  extension
28    granted  under  subsection  (e)  of  that  Section, the first
29    anniversary of retirement shall be deemed to  be  January  1,
30    1993.
31        On  each  January  1  following  the  date of the initial
 
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 1    increase  under  this  subsection,  the  employee's   monthly
 2    retirement annuity shall be increased by an additional 3%.
 3        Beginning January 1, 1990, all automatic annual increases
 4    payable   under   this  Section  shall  be  calculated  as  a
 5    percentage of the total annuity payable at the  time  of  the
 6    increase,  including  previous  increases  granted under this
 7    Article.
 8        (b)  The provisions of subsection  (a)  of  this  Section
 9    shall be applicable to an employee only if the employee makes
10    the additional contributions required after December 31, 1969
11    for  the purpose of the automatic increases for not less than
12    the equivalent of one full year. If an  employee  becomes  an
13    annuitant  before his additional contributions equal one full
14    year's contributions based on  his  salary  at  the  date  of
15    retirement, the employee may pay the necessary balance of the
16    contributions   to  the  system,  without  interest,  and  be
17    eligible  for  the  increasing  annuity  authorized  by  this
18    Section.
19        (c)  The provisions of subsection  (a)  of  this  Section
20    shall not be applicable to any annuitant who is on retirement
21    on  December  31,  1969,  and  thereafter  returns  to  State
22    service,  unless the member has established at least one year
23    of  additional  creditable  service  following  reentry  into
24    service.
25        (d)  In addition to other increases which may be provided
26    by this Section, on January 1, 1981  any  annuitant  who  was
27    receiving  a  retirement annuity on or before January 1, 1971
28    shall have his retirement annuity then being  paid  increased
29    $1 per month for each year of creditable service.  On January
30    1,  1982,  any  annuitant  who  began  receiving a retirement
31    annuity  on  or  before  January  1,  1977,  shall  have  his
32    retirement annuity then being paid increased $1 per month for
33    each year of creditable service.
34        On January 1, 1987, any annuitant who began  receiving  a
 
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 1    retirement  annuity  on or before January 1, 1977, shall have
 2    the monthly retirement annuity increased by an  amount  equal
 3    to  8¢  per  year  of  creditable service times the number of
 4    years that have elapsed since the annuity began.
 5        (d-1)  On January 1,  2000,  every  annuitant  who  began
 6    receiving  a  retirement annuity on or before January 1, 1991
 7    shall have the monthly retirement  annuity  increased  by  an
 8    amount equal to 25¢ multiplied by the number of full years of
 9    creditable  service  multiplied  by  the number of full years
10    that have elapsed since the annuity began.   Every  annuitant
11    who  begins  receiving  a retirement annuity after January 1,
12    1991 and before  January  1,  1998  shall  have  the  monthly
13    retirement  annuity  increased  on  January 1, 2000 or on the
14    January  1  occurring  on  or  next  following  the   seventh
15    anniversary  of  retirement, whichever is later, by an amount
16    equal to $1.75 multiplied by the  number  of  full  years  of
17    creditable  service  upon  which  the  retirement  annuity is
18    based.  The increase under this subsection shall be  included
19    in  the  calculation  of  increases granted simultaneously or
20    thereafter under subsection (a).
21        (e)  Every person who receives the alternative retirement
22    annuity under Section 14-110 and who is eligible  to  receive
23    the  3%  increase  under  subsection  (a) on January 1, 1986,
24    shall also receive  on  that  date  a  one-time  increase  in
25    retirement  annuity  equal  to the difference between (1) his
26    actual  retirement  annuity  on  that  date,  including   any
27    increases  received  under subsection (a), and (2) the amount
28    of retirement annuity he would have received on that date  if
29    the  amendments  to  subsection (a) made by Public Act 84-162
30    had been in effect since the date of his retirement.
31    (Source: P.A. 86-273; 87-1265.)

32        (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
33        Sec. 14-119.  Amount of widow's annuity.
 
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 1        (a)  The widow's annuity shall be 50% of  the  amount  of
 2    retirement annuity payable to the member on the date of death
 3    while  on  retirement  if an annuitant, or on the date of his
 4    death while in service if an employee, regardless of his  age
 5    on  such date, or on the date of withdrawal if death occurred
 6    after termination of service under the conditions  prescribed
 7    in the preceding Section.
 8        (b)  If  an eligible widow, regardless of age, has in her
 9    care any unmarried child or children of the member under  age
10    18 (under age 22 if a full-time student), the widow's annuity
11    shall  be  increased  in  the  amount of 5% of the retirement
12    annuity for each such child, but the combined payments for  a
13    widow  and  children shall not exceed 66 2/3% of the member's
14    earned retirement annuity.
15        The amount of retirement annuity from which  the  widow's
16    annuity is derived shall be that earned by the member without
17    regard  to whether he attained age 60 prior to his withdrawal
18    under the conditions stated or prior to his death.
19        (c)  Adopted children shall be considered as children  of
20    the   member  only  if  the  proceedings  for  adoption  were
21    commenced at least 1 year prior to the member's death.
22        Marriage of a child shall render the child ineligible for
23    further consideration in the increase in the  amount  of  the
24    widow's annuity.
25        Attainment  of  age  18  (age  22 if a full-time student)
26    shall render a child ineligible for further consideration  in
27    the  increase  of the widow's annuity, but the annuity to the
28    widow shall be continued thereafter, without  regard  to  her
29    age at that time.
30        (d)  A  widow's annuity payable on account of any covered
31    employee who shall have been a covered employee for at  least
32    18  months shall be reduced by 1/2 of the amount of survivors
33    benefits to which his beneficiaries are  eligible  under  the
34    provisions  of  the  Federal Social Security Act, except that
 
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 1    (1) the amount of any  widow's  annuity  payable  under  this
 2    Article  shall not be reduced by reason of any increase under
 3    that Act which occurs  after  the  offset  required  by  this
 4    subsection  is  first  applied  to  that annuity, and (2) for
 5    benefits granted on or after  January  1,  1992,  the  offset
 6    under  this subsection (d) shall not exceed 50% of the amount
 7    of widow's annuity otherwise payable.
 8        (e)  Upon the death of a recipient of a  widow's  annuity
 9    the   excess,   if      any,   of  the  member's  accumulated
10    contributions  plus  credited  interest  over   all   annuity
11    payments  to the member and widow, exclusive of the $500 lump
12    sum payment, shall be paid to the named  beneficiary  of  the
13    widow, or if none has been named, to the estate of the widow,
14    provided no reversionary annuity is payable.
15        (f)  On  January  1,  1981,  any  recipient  of a widow's
16    annuity who was receiving a  widow's  annuity  on  or  before
17    January  1,  1971,  shall have her widow's annuity then being
18    paid increased by 1% for each full  year  which  has  elapsed
19    from the date the widow's annuity began.  On January 1, 1982,
20    any  recipient  of  a  widow's  annuity who began receiving a
21    widow's annuity after January 1, 1971, but before January  1,
22    1981,   shall  have  her  widow's  annuity  then  being  paid
23    increased by 1% for each full year which has elapsed from the
24    date the widow's annuity began.   On  January  1,  1987,  any
25    recipient  of  a  widow's  annuity  who  began  receiving the
26    widow's annuity on or before January 1, 1977, shall have  the
27    monthly  widow's  annuity  increased by $1 for each full year
28    which has elapsed since the date the annuity began.
29        (f-1)  On  January  1,  2000,  every  widow   who   began
30    receiving  a  widow's  annuity  on  or before January 1, 1991
31    shall have the monthly widow's annuity increased by an amount
32    equal to 25¢ multiplied by the number of full  years  of  the
33    deceased spouse's creditable service multiplied by the sum of
34    (i)  the  number  of  full  years that have elapsed since the
 
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 1    widow's annuity began and (ii) the number of full  years,  if
 2    any,  during  which the deceased spouse received a retirement
 3    annuity under this Article.  Every widow who begins receiving
 4    a widow's annuity after January 1, 1991 and before January 1,
 5    2000 shall have the  monthly  widow's  annuity  increased  on
 6    January  1,  2000  or  on  the January 1 occurring on or next
 7    following the seventh anniversary of the commencement of  the
 8    widow's  annuity,  whichever  is later, by an amount equal to
 9    25¢ multiplied by the number of full years  of  the  deceased
10    spouse's  creditable service multiplied by the sum of (i) the
11    number of full years that  have  elapsed  since  the  widow's
12    annuity  began  and  (ii)  the  number of full years, if any,
13    during  which  the  deceased  spouse  received  a  retirement
14    annuity  under  this  Article.   The  increase   under   this
15    subsection  shall be included in the calculation of increases
16    granted simultaneously or thereafter under subsection (g).
17        (g)  Beginning January 1,  1990,  every  widow's  annuity
18    shall  be  increased  (1)  on  each January 1 occurring on or
19    after the commencement of the annuity if the deceased  member
20    died  while  receiving  a retirement annuity, or (2) in other
21    cases, on each January 1 occurring  on  or  after  the  first
22    anniversary  of the commencement of the annuity, by an amount
23    equal to 3% of the current amount of the  annuity,  including
24    any  previous  increases  under  this Article. Such increases
25    shall apply without regard to whether the deceased member was
26    in service on or after  the  effective  date  of  Public  Act
27    86-1488, but shall not accrue for any period prior to January
28    1, 1990.
29    (Source: P.A. 90-448, eff. 8-16-97.)

30        (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
31        Sec.  14-121.   Amount of survivors annuity.  A survivors
32    annuity beneficiary shall  be  entitled  upon  death  of  the
33    member  to  a  single sum payment of $1,000, payable pro rata
 
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 1    among all persons entitled thereto, together with a survivors
 2    annuity  payable  at  the  rates  and  under  the  conditions
 3    specified in this Article.
 4        (a)  If the survivors annuity beneficiary  is  a  spouse,
 5    the   survivors   annuity  shall  be  30%  of  final  average
 6    compensation subject to a maximum payment of $400 per month.
 7        (b)  If an eligible child or children under the care of a
 8    spouse also survives  the  member,  such  spouse  as  natural
 9    guardian  of the child or children shall receive, in addition
10    to the foregoing annuity, 20% of final  average  compensation
11    on  account  of  each  such  child  and  10% of final average
12    compensation divided pro rata among such children, subject to
13    a  maximum  payment  on  account  of  all  survivor   annuity
14    beneficiaries of $600 per month, or 80% of the member's final
15    average compensation, whichever is the lesser.
16        (c)  If    the    survivors    annuity   beneficiary   or
17    beneficiaries consists of an unmarried child or children, the
18    amount of survivors annuity shall be  20%  of  final  average
19    compensation   to  each  child,  and  10%  of  final  average
20    compensation  divided  pro  rata  among  all  such   children
21    entitled to such annuity, subject to a maximum payment to all
22    children  combined  of  $600 per month or 80% of the member's
23    final average compensation, whichever is the lesser.
24        (d)  If the survivors annuity beneficiary is one or  more
25    dependent  parents, the annuity shall be 20% of final average
26    compensation  to  each  parent  and  10%  of  final   average
27    compensation  divided  pro rata among the parents who qualify
28    for this annuity,  subject  to  a  maximum  payment  to  both
29    dependent parents of $400 per month.
30        (e)  The  survivors  annuity  to  the spouse, children or
31    dependent parents of a member whose death  occurs  after  the
32    date  of  last  withdrawal,  or after retirement, or while in
33    service following reentry into service after  retirement  but
34    before  completing  1  1/2  years  of  additional  creditable
 
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 1    service,  shall  not exceed the lesser of 80% of the member's
 2    earned retirement annuity at the date of death or the maximum
 3    previously established in this Section.
 4        (f)  In  applying  the  limitation  prescribed   on   the
 5    combined   payments   to   2   or   more   survivors  annuity
 6    beneficiaries, the annuity on  account  of  each  beneficiary
 7    shall  be  reduced  pro rata until such time as the number of
 8    beneficiaries makes the reduction no longer applicable.
 9        (g)  A  survivors  annuity  payable  on  account  of  any
10    covered employee who shall have been a covered  employee  for
11    at  least  18  months  at  date  of death or last withdrawal,
12    whichever is the later,  shall  be  reduced  by  1/2  of  the
13    survivors  benefits  to  which his beneficiaries are eligible
14    under the federal Social Security Act, except  that  (1)  the
15    survivors  annuity  payable  under  this Article shall not be
16    reduced by any increase under that Act which occurs after the
17    offset required by this subsection is first applied  to  that
18    annuity,  and (2) for benefits granted on or after January 1,
19    1992, the offset under this subsection (g) shall  not  exceed
20    50% of the amount of survivors annuity otherwise payable.
21        (h)  The minimum payment to a beneficiary hereunder shall
22    be  $60  per month, which shall be reduced in accordance with
23    the limitation prescribed on the  combined  payments  to  all
24    beneficiaries of a member.
25        (i)  Subject  to  the  conditions  set  forth  in Section
26    14-120, the minimum total survivors annuity  benefit  payable
27    to  the  survivors annuity beneficiaries of a deceased member
28    or annuitant whose death occurs on or after January 1,  1984,
29    shall  be 50% of the amount of retirement annuity that was or
30    would have been payable to the deceased on the date of death,
31    regardless of the age of the deceased on such date.   If  the
32    minimum total benefit provided by this subsection exceeds the
33    maximum  otherwise imposed by this Section, the minimum total
34    benefit shall nevertheless be payable.  Any increase  in  the
 
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 1    total  survivors annuity benefit resulting from the operation
 2    of this subsection  shall  be  divided  among  the  survivors
 3    annuity  beneficiaries of the deceased in proportion to their
 4    shares of  the  total  survivors  annuity  benefit  otherwise
 5    payable under this Section.
 6        (j)  Any  survivors  annuity  beneficiary  whose  annuity
 7    terminates  due  to  any  condition specified in this Article
 8    other than death shall be entitled to a refund of the excess,
 9    if any, of the accumulated contributions of the  member  plus
10    credited  interest  over  all  payments  to  the  member  and
11    beneficiary  or  beneficiaries,  exclusive  of the single sum
12    payment  of  $1,000,  provided   no   future   survivors   or
13    reversionary annuity benefits are payable.
14        (k)  Upon  the  death of the last eligible recipient of a
15    survivors  annuity  the  excess,  if  any,  of  the  member's
16    accumulated contributions plus  credited  interest  over  all
17    annuity payments to the member and survivors exclusive of the
18    single  sum  payment  of  $1000,  shall  be paid to the named
19    beneficiary of the last eligible survivor,  or  if  none  has
20    been  named,  to  the  estate  of the last eligible survivor,
21    provided no reversionary annuity is payable.
22        (l)  On January 1, 1981, any survivor who was receiving a
23    survivors annuity on or before January 1,  1971,  shall  have
24    his  survivors  annuity  then  being paid increased by 1% for
25    each full year which has elapsed from the  date  the  annuity
26    began.   On January 1, 1982, any survivor who began receiving
27    a survivor's  annuity  after  January  1,  1971,  but  before
28    January 1, 1981, shall have his survivor's annuity then being
29    paid increased by 1% for each full year that has elapsed from
30    the  date the annuity began. On January 1, 1987, any survivor
31    who began receiving a survivor's annuity on or before January
32    1, 1977, shall have the monthly survivor's annuity  increased
33    by $1 for each full year which has elapsed since the date the
34    survivor's annuity began.
 
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 1        (m)  Beginning  January 1, 1990, every survivor's annuity
 2    shall be increased (1) on each  January  1  occurring  on  or
 3    after  the commencement of the annuity if the deceased member
 4    died while receiving a retirement annuity, or  (2)  in  other
 5    cases,  on  each  January  1  occurring on or after the first
 6    anniversary of the commencement of the annuity, by an  amount
 7    equal  to  3% of the current amount of the annuity, including
 8    any previous increases under this Article.    Such  increases
 9    shall apply without regard to whether the deceased member was
10    in  service  on  or  after  the  effective date of Public Act
11    86-1488, but shall not accrue for any period prior to January
12    1, 1990.
13        (n)  On  January  1,  2000,  every  survivor  who   began
14    receiving  a  survivor's annuity on or before January 1, 1991
15    shall have the monthly survivor's  annuity  increased  by  an
16    amount equal to 25¢ multiplied by the number of full years of
17    the  deceased's  creditable  service multiplied by the sum of
18    (i) the number of full years  that  have  elapsed  since  the
19    survivor's  annuity  began and (ii) the number of full years,
20    if any, during  which  the  deceased  received  a  retirement
21    annuity  under  this  Article.    Every  survivor  who begins
22    receiving a survivor's annuity  after  January  1,  1991  and
23    before  January  1,  2000  shall  have the monthly survivor's
24    annuity increased on January 1, 2000  or  on  the  January  1
25    occurring on or next following the seventh anniversary of the
26    commencement  of  the survivor's annuity, whichever is later,
27    by an amount equal to 25¢ multiplied by the  number  of  full
28    years  of the deceased's creditable service multiplied by the
29    sum of (i) the number of full years that have  elapsed  since
30    the  survivor's  annuity  began  and  (ii) the number of full
31    years,  if  any,  during  which  the  deceased   received   a
32    retirement  annuity  under  this Article.  The increase under
33    this subsection shall  be  included  in  the  calculation  of
34    increases   granted   simultaneously   or   thereafter  under
 
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 1    subsection (m).
 2    (Source: P.A. 86-273; 86-1488; 87-794.)

 3        (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
 4        Sec.  15-136.   Retirement  annuities  -   Amount.    The
 5    provisions  of  this  Section  15-136  apply  only  to  those
 6    participants who are participating in the traditional benefit
 7    package  or  the portable benefit package and do not apply to
 8    participants who are participating in the self-managed plan.
 9        (a)  The amount of a  participant's  retirement  annuity,
10    expressed  in  the  form  of  a single-life annuity, shall be
11    determined by whichever of the following rules is  applicable
12    and provides the largest annuity:
13        Rule  1:  The  retirement annuity shall be 1.67% of final
14    rate of earnings for each of the first 10 years  of  service,
15    1.90%  for  each  of  the next 10 years of service, 2.10% for
16    each year of service in excess of 20 but  not  exceeding  30,
17    and  2.30%  for each year in excess of 30; or for persons who
18    retire on or after January 1, 1998, 2.2% of the final rate of
19    earnings for each year of service.
20        Rule 2:  The retirement annuity shall be the sum  of  the
21    following,   determined   from   amounts   credited   to  the
22    participant in accordance with the actuarial tables  and  the
23    prescribed  rate  of  interest  in  effect  at  the  time the
24    retirement annuity begins:
25             (i)  the normal annuity which can be provided on  an
26        actuarially  equivalent  basis, by the accumulated normal
27        contributions as of the date the annuity begins; and
28             (ii)  an annuity from employer contributions  of  an
29        amount which can be provided on an actuarially equivalent
30        basis  from  the accumulated normal contributions made by
31        the  participant  under  Section  15-113.6  and   Section
32        15-113.7  plus  1.4  times  all  other accumulated normal
33        contributions made by the participant.
 
                            -12-               LRB9107773LDsb
 1    With respect to a police officer or firefighter  who  retires
 2    on  or  after  the  effective  date of this amendatory Act of
 3    1998, the accumulated normal contributions taken into account
 4    under clauses (i) and (ii) of this Rule 2 shall  include  the
 5    additional normal contributions made by the police officer or
 6    firefighter under Section 15-157(a).
 7        Rule  3:  The  retirement annuity of a participant who is
 8    employed at least one-half time during the  period  on  which
 9    his or her final rate of earnings is based, shall be equal to
10    the   participant's  years  of  service  not  to  exceed  30,
11    multiplied by (1) $96 if  the  participant's  final  rate  of
12    earnings  is  less than $3,500, (2) $108 if the final rate of
13    earnings is at least $3,500 but less than $4,500, (3) $120 if
14    the final rate of earnings is at least $4,500 but  less  than
15    $5,500,  (4)  $132  if the final rate of earnings is at least
16    $5,500 but less than $6,500, (5) $144 if the  final  rate  of
17    earnings is at least $6,500 but less than $7,500, (6) $156 if
18    the  final  rate of earnings is at least $7,500 but less than
19    $8,500, (7) $168 if the final rate of earnings  is  at  least
20    $8,500  but  less than $9,500, and (8) $180 if the final rate
21    of earnings is $9,500 or more, except that  the  annuity  for
22    those   persons   having   made  an  election  under  Section
23    15-154(a-1)  shall  be  calculated  and  payable  under   the
24    portable   retirement   benefit   program   pursuant  to  the
25    provisions of Section 15-136.4.
26        Rule 4:  A participant who is at least age 50 and has  25
27    or  more years of service as a police officer or firefighter,
28    and a participant who is age 55 or over and has at  least  20
29    but  less  than  25  years  of service as a police officer or
30    firefighter, shall be entitled to  a  retirement  annuity  of
31    2 1/4% of the final rate of earnings for each of the first 10
32    years  of  service as a police officer or firefighter, 2 1/2%
33    for each of the next 10 years of service as a police  officer
34    or  firefighter,  and  2 3/4%  for  each year of service as a
 
                            -13-               LRB9107773LDsb
 1    police  officer  or  firefighter  in  excess  of   20.    The
 2    retirement  annuity  for  all other service shall be computed
 3    under Rule 1.
 4        For purposes of this Rule 4, a participant's service as a
 5    firefighter shall also include the following:
 6             (i)  service that is performed while the  person  is
 7        an employee under subsection (h) of Section 15-107; and
 8             (ii)  in  the  case  of  an  individual  who  was  a
 9        participating employee employed in the fire department of
10        the  University  of  Illinois's  Champaign-Urbana  campus
11        immediately   prior  to  the  elimination  of  that  fire
12        department and who immediately after the  elimination  of
13        that  fire department transferred to another job with the
14        University of Illinois, service performed as an  employee
15        of  the  University  of Illinois in a position other than
16        police officer or firefighter,  from  the  date  of  that
17        transfer until the employee's next termination of service
18        with the University of Illinois.
19        (b)  The  retirement annuity provided under Rules 1 and 3
20    above shall be reduced by  1/2  of  1%  for  each  month  the
21    participant  is  under  age  60  at  the  time of retirement.
22    However, this reduction shall  not  apply  in  the  following
23    cases:
24             (1)  For  a  disabled  participant  whose disability
25        benefits have been discontinued because  he  or  she  has
26        exhausted   eligibility  for  disability  benefits  under
27        clause (6) of Section 15-152;
28             (2)  For a participant who has at least  the  number
29        of  years  of service required to retire at any age under
30        subsection (a) of Section 15-135; or
31             (3)  For that portion of a retirement annuity  which
32        has   been   provided   on  account  of  service  of  the
33        participant during periods when he or she  performed  the
34        duties  of  a  police  officer  or  firefighter, if these
 
                            -14-               LRB9107773LDsb
 1        duties were performed for at least  5  years  immediately
 2        preceding the date the retirement annuity is to begin.
 3        (c)  The  maximum retirement annuity provided under Rules
 4    1, 2, and 4 shall be the lesser of (1) the  annual  limit  of
 5    benefits  as specified in Section 415 of the Internal Revenue
 6    Code of 1986, as such Section may be  amended  from  time  to
 7    time  and  as  such  benefit  limits shall be adjusted by the
 8    Commissioner of Internal Revenue, and (2) 80% of  final  rate
 9    of earnings.
10        (d)  An  annuitant whose status as an employee terminates
11    after August 14, 1969 shall receive  automatic  increases  in
12    his or her retirement annuity as follows:
13        Effective  January  1  immediately following the date the
14    retirement annuity begins, the  annuitant  shall  receive  an
15    increase  in  his or her monthly retirement annuity of 0.125%
16    of the monthly retirement annuity provided under Rule 1, Rule
17    2, Rule 3, or Rule 4, contained in this  Section,  multiplied
18    by  the number of full months which elapsed from the date the
19    retirement annuity payments began to January  1,  1972,  plus
20    0.1667%  of  such  annuity,  multiplied by the number of full
21    months which elapsed from January 1, 1972, or  the  date  the
22    retirement  annuity  payments  began,  whichever is later, to
23    January 1, 1978, plus 0.25% of such annuity multiplied by the
24    number of full months which elapsed from January 1, 1978,  or
25    the  date the retirement annuity payments began, whichever is
26    later, to the effective date of the increase.
27        The annuitant shall receive an increase  in  his  or  her
28    monthly  retirement  annuity  on  each  January  1 thereafter
29    during the annuitant's life of  3%  of  the  monthly  annuity
30    provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
31    this  Section.  The change made under this subsection by P.A.
32    81-970 is effective January  1,  1980  and  applies  to  each
33    annuitant  whose  status  as an employee terminates before or
34    after that date.
 
                            -15-               LRB9107773LDsb
 1        Beginning January 1, 1990, all automatic annual increases
 2    payable  under  this  Section  shall  be  calculated   as   a
 3    percentage  of  the  total annuity payable at the time of the
 4    increase, including all increases  previously  granted  under
 5    this Article.
 6        The  change  made  in  this subsection by P.A. 85-1008 is
 7    effective January 26, 1988, and is applicable without  regard
 8    to whether status as an employee terminated before that date.
 9        (e)  If,  on  January 1, 1987, or the date the retirement
10    annuity payment period begins, whichever is later, the sum of
11    the retirement annuity provided under Rule 1  or  Rule  2  of
12    this  Section  and  the  automatic  annual increases provided
13    under the preceding subsection or Section  15-136.1,  amounts
14    to  less  than the retirement annuity which would be provided
15    by Rule 3, the retirement annuity shall be  increased  as  of
16    January  1,  1987, or the date the retirement annuity payment
17    period begins, whichever is later, to the amount which  would
18    be  provided by Rule 3 of this Section. Such increased amount
19    shall be considered as the retirement annuity in  determining
20    benefits  provided under other Sections of this Article. This
21    paragraph applies without regard  to  whether  status  as  an
22    employee   terminated  before  the  effective  date  of  this
23    amendatory Act of  1987,  provided  that  the  annuitant  was
24    employed  at  least  one-half time during the period on which
25    the final rate of earnings was based.
26        (f)  A participant is entitled to such additional annuity
27    as may be provided on an actuarially equivalent basis, by any
28    accumulated additional contributions to his  or  her  credit.
29    However, the additional contributions made by the participant
30    toward the automatic increases in annuity provided under this
31    Section  shall  not  be taken into account in determining the
32    amount of such additional annuity.
33        (g)  If, (1) by law, a function of a  governmental  unit,
34    as  defined by Section 20-107 of this Code, is transferred in
 
                            -16-               LRB9107773LDsb
 1    whole or in part  to  an  employer,  and  (2)  a  participant
 2    transfers  employment  from  such  governmental  unit to such
 3    employer within 6 months after the transfer of the  function,
 4    and (3) the sum of (A) the annuity payable to the participant
 5    under  Rule  1,  2, or 3 of this Section (B) all proportional
 6    annuities payable to the participant by all other  retirement
 7    systems  covered  by  Article 20, and (C) the initial primary
 8    insurance amount to which the participant is  entitled  under
 9    the  Social Security Act, is less than the retirement annuity
10    which would have been payable if  all  of  the  participant's
11    pension  credits  validated  under  Section  20-109  had been
12    validated under this system, a supplemental annuity equal  to
13    the  difference  in  such  amounts  shall  be  payable to the
14    participant.
15        (h)  On January 1, 1981, an annuitant who was receiving a
16    retirement annuity on or before January 1,  1971  shall  have
17    his  or  her  retirement annuity then being paid increased $1
18    per month for each year of creditable service. On January  1,
19    1982,  an  annuitant  whose  retirement  annuity  began on or
20    before January 1, 1977, shall  have  his  or  her  retirement
21    annuity  then being paid increased $1 per month for each year
22    of creditable service.
23        (i)  On January 1, 1987, any annuitant  whose  retirement
24    annuity  began  on  or before January 1, 1977, shall have the
25    monthly retirement annuity increased by an amount equal to 8¢
26    per year of creditable service times the number of years that
27    have elapsed since the annuity began.
28        (j)  On  January  1,  2000,  every  annuitant  who  began
29    receiving a retirement annuity on or before January  1,  1991
30    shall  have  the  monthly  retirement annuity increased by an
31    amount equal to 25¢ multiplied by the number of full years of
32    creditable service multiplied by the  number  of  full  years
33    that  have  elapsed since the annuity began.  Every annuitant
34    who begins receiving a retirement annuity  after  January  1,
 
                            -17-               LRB9107773LDsb
 1    1991  and  before  January  1,  1998  shall  have the monthly
 2    retirement annuity increased on January 1,  2000  or  on  the
 3    January   1  occurring  on  or  next  following  the  seventh
 4    anniversary of retirement, whichever is later, by  an  amount
 5    equal  to  $1.75  multiplied  by  the number of full years of
 6    creditable service  upon  which  the  retirement  annuity  is
 7    based.   The increase under this subsection shall be included
 8    in the calculation of  increases  granted  simultaneously  or
 9    thereafter under subsection (d).
10    (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
11    eff.  8-16-97;  90-576,  eff.  3-31-98; 90-655, eff. 7-30-98;
12    90-766, eff. 8-14-98.)

13        (40 ILCS 5/15-136.3)
14        Sec. 15-136.3. Minimum retirement annuity.
15        (a)  Beginning  January  1,  1997,  any  person  who   is
16    receiving  a  monthly  retirement  annuity under this Article
17    which, after inclusion of  (1)  all  one-time  and  automatic
18    annual  increases  to  which  the person is entitled, (2) any
19    supplemental annuity payable under Section 15-136.1, and  (3)
20    any amount deducted under Section 15-138 or 15-140 to provide
21    a  reversionary  annuity,  is  less  than the minimum monthly
22    retirement benefit amount specified in subsection (b) of this
23    Section, shall be entitled to a monthly supplemental  payment
24    equal to the difference.
25        (b)  For  purposes  of the calculation in subsection (a),
26    the minimum monthly retirement benefit amount is the  sum  of
27    $25  for  each  year of service credit, up to a maximum of 30
28    years of service, plus the amount of the increase received by
29    the annuitant under subsection (j) of Section 15-136, if any.
30        (c)  This Section applies  to  all  persons  receiving  a
31    retirement  annuity  under  this  Article,  without regard to
32    whether or not employment terminated prior to  the  effective
33    date of this Section.
 
                            -18-               LRB9107773LDsb
 1    (Source: P.A. 89-616, eff. 8-9-96.)

 2        (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
 3        Sec.  15-145.   Survivors  insurance benefits; conditions
 4    and amounts.
 5        (a)  The survivors insurance benefits provided under this
 6    Section shall be payable  to  the  eligible  survivors  of  a
 7    participant  covered  under  the  traditional benefit package
 8    upon the death of (1) a participating employee with at  least
 9    1 1/2  years  of  service,  (2)  a participant who terminated
10    employment with at least 10 years  of  service,  and  (3)  an
11    annuitant  in  receipt  of a retirement annuity or disability
12    retirement annuity under this Article.
13        Service under the State Employees' Retirement  System  of
14    Illinois,  the  Teachers'  Retirement  System of the State of
15    Illinois  and  the  Public  School  Teachers'   Pension   and
16    Retirement Fund of Chicago shall be considered in determining
17    eligibility for survivors benefits under this Section.
18        If  by law, a function of a governmental unit, as defined
19    by Section 20-107, is transferred in whole or in part  to  an
20    employer,  and  an  employee  transfers  employment from this
21    governmental unit to such employer within 6 months after  the
22    transfer  of  this  function,  the  service  credits  in  the
23    governmental   unit's   retirement  system  which  have  been
24    validated  under  Section  20-109  shall  be  considered   in
25    determining  eligibility  for  survivors  benefits under this
26    Section.
27        (b)  A surviving spouse of a deceased participant, or  of
28    a   deceased   annuitant   who   had  a  survivors  insurance
29    beneficiary at  the  time  of  retirement,  shall  receive  a
30    survivors  annuity  of  30%  of  the  final rate of earnings.
31    Payments shall begin on the day following  the  participant's
32    or annuitant's death or the date the surviving spouse attains
33    age  50,  whichever is later, and continue until the death of
 
                            -19-               LRB9107773LDsb
 1    the surviving spouse.  The annuity shall be  payable  to  the
 2    surviving  spouse  prior  to  attainment  of  age  50  if the
 3    surviving  spouse  has  in  his  or  her  care   a   deceased
 4    participant's  or annuitant's dependent unmarried child under
 5    age 18 (under age 22 if a full-time student) who is  eligible
 6    for  a  survivors  annuity.  Remarriage of a surviving spouse
 7    prior to attainment of age 55 shall disqualify him or her for
 8    the receipt of a survivors annuity.
 9        (c)  Each dependent unmarried child under age  18  (under
10    age  22 if a full-time student) of a deceased participant, or
11    of  a  deceased  annuitant  who  had  a  survivors  insurance
12    beneficiary at the time  of  his  or  her  retirement,  shall
13    receive  a  survivors  annuity equal to the sum of (1) 20% of
14    the final rate of earnings, and (2) 10% of the final rate  of
15    earnings  divided  by the number of children entitled to this
16    benefit.  Payments shall  begin  on  the  day  following  the
17    participant's  or  annuitant's  death  and continue until the
18    child marries, dies, or attains age 18 (age 22 if a full-time
19    student).  If the child is in the care of a surviving  spouse
20    who is eligible for survivors insurance benefits, the child's
21    benefit shall be paid to the surviving spouse.
22        Each   unmarried   child   over  age  18  of  a  deceased
23    participant or of a deceased annuitant who had  a  survivor's
24    insurance  beneficiary  at the time of his or her retirement,
25    and who was dependent upon the participant  or  annuitant  by
26    reason  of  a physical or mental disability which began prior
27    to the date the child attained age 18 (age 22 if a  full-time
28    student), shall receive a survivor's annuity equal to the sum
29    of  (1) 20% of the final rate of earnings, and (2) 10% of the
30    final rate of earnings divided  by  the  number  of  children
31    entitled  to survivors benefits.  Payments shall begin on the
32    day following the  participant's  or  annuitant's  death  and
33    continue  until  the  child  marries,  dies,  or is no longer
34    disabled.  If the child is in the care of a surviving  spouse
 
                            -20-               LRB9107773LDsb
 1    who is eligible for survivors insurance benefits, the child's
 2    benefit  may  be  paid  to  the  surviving  spouse.   For the
 3    purposes of  this  Section,  disability  means  inability  to
 4    engage  in  any substantial gainful activity by reason of any
 5    medically determinable physical or mental impairment that can
 6    be expected to result in death or that has lasted or  can  be
 7    expected  to  last  for  a  continuous period of at least one
 8    year.
 9        (d)  Each dependent parent of a deceased participant,  or
10    of  a  deceased  annuitant  who  had  a  survivors  insurance
11    beneficiary  at  the  time  of  his  or her retirement, shall
12    receive a survivors annuity equal to the sum of  (1)  20%  of
13    final rate of earnings, and (2) 10% of final rate of earnings
14    divided by the number of parents who qualify for the benefit.
15    Payments  shall  begin  when the parent reaches age 55 or the
16    day  following  the  participant's  or   annuitant's   death,
17    whichever  is  later,  and  continue  until  the parent dies.
18    Remarriage of a parent prior to attainment of  age  55  shall
19    disqualify the parent for the receipt of a survivors annuity.
20        (e)  In addition to the survivors annuity provided above,
21    each survivors insurance beneficiary shall, upon death of the
22    participant  or  annuitant,  receive  a  lump  sum payment of
23    $1,000 divided by the number of such beneficiaries.
24        (f)  The changes made  in  this  Section  by  Public  Act
25    81-712   pertaining   to  survivors  annuities  in  cases  of
26    remarriage prior to age 55  shall  apply  to  each  survivors
27    insurance  beneficiary  who  remarries  after  June 30, 1979,
28    regardless of the date  that  the  participant  or  annuitant
29    terminated his employment or died.
30        (g)  On  January  1, 1981, any person who was receiving a
31    survivors annuity on or before January 1, 1971 shall have the
32    survivors annuity then being paid increased by  1%  for  each
33    full  year which has elapsed from the date the annuity began.
34    On January 1, 1982, any survivor whose  annuity  began  after
 
                            -21-               LRB9107773LDsb
 1    January  1,  1971, but before January 1, 1981, shall have the
 2    survivor's annuity then being paid increased by 1%  for  each
 3    year  which  has elapsed from the date the survivor's annuity
 4    began. On January 1, 1987, any survivor who began receiving a
 5    survivor's annuity on or before January 1, 1977,  shall  have
 6    the  monthly survivor's annuity increased by $1 for each full
 7    year which has elapsed since the date the survivor's  annuity
 8    began.
 9        (g-1)  On  January  1,  2000,  every  survivor  who began
10    receiving a survivor's annuity on or before January  1,  1991
11    shall  have  the  monthly  survivor's annuity increased by an
12    amount equal to 25¢ multiplied by the number of full years of
13    the deceased's creditable service multiplied by  the  sum  of
14    (i)  the  number  of  full  years that have elapsed since the
15    survivor's annuity began and (ii) the number of  full  years,
16    if  any,  during  which  the  deceased  received a retirement
17    annuity under  this  Article.    Every  survivor  who  begins
18    receiving  a  survivor's  annuity  after  January 1, 1991 and
19    before January 1, 2000  shall  have  the  monthly  survivor's
20    annuity  increased  on  January  1,  2000 or on the January 1
21    occurring on or next following the seventh anniversary of the
22    commencement of the survivor's annuity, whichever  is  later,
23    by  an  amount  equal to 25¢ multiplied by the number of full
24    years of the deceased's creditable service multiplied by  the
25    sum  of  (i) the number of full years that have elapsed since
26    the survivor's annuity began and  (ii)  the  number  of  full
27    years,   if   any,  during  which  the  deceased  received  a
28    retirement annuity under this Article.   The  increase  under
29    this  subsection  shall  be  included  in  the calculation of
30    increases  granted   simultaneously   or   thereafter   under
31    subsection (j).
32        (h)  If  the  sum  of  the  lump  sum  and  total monthly
33    survivor benefits payable under this Section upon  the  death
34    of  a  participant  amounts to less than the sum of the death
 
                            -22-               LRB9107773LDsb
 1    benefits payable under items (2) and (3) of  Section  15-141,
 2    the difference shall be paid in a lump sum to the beneficiary
 3    of  the  participant  who  is  living  on  the date that this
 4    additional amount becomes payable.
 5        (i)  If the  sum  of  the  lump  sum  and  total  monthly
 6    survivor  benefits  payable under this Section upon the death
 7    of an annuitant receiving a retirement annuity or  disability
 8    retirement  annuity  amounts  to  less than the death benefit
 9    payable under Section 15-142, the difference shall be paid to
10    the beneficiary of the annuitant who is living  on  the  date
11    that this additional amount becomes payable.
12        (j)  Effective  on  the  later of (1) January 1, 1990, or
13    (2) the January 1 on or next after  the  date  on  which  the
14    survivor  annuity  begins,  if the deceased member died while
15    receiving a retirement annuity, or in  all  other  cases  the
16    January  1  nearest  the  first  anniversary  of the date the
17    survivor annuity payments begin,  every  survivors  insurance
18    beneficiary  shall  receive an increase in his or her monthly
19    survivors annuity of 3%.  On each January 1 after the initial
20    increase, the monthly survivors annuity shall be increased by
21    3%  of  the  total  survivors  annuity  provided  under  this
22    Article,  including  previous  increases  provided  by   this
23    subsection.   Such  increases  shall  apply  to the survivors
24    insurance beneficiaries of each  participant  and  annuitant,
25    whether  or  not  the employment status of the participant or
26    annuitant  terminates  before  the  effective  date  of  this
27    amendatory Act of 1990.
28        (k)  If the Internal Revenue Code of  1986,  as  amended,
29    requires  that  the  survivors  benefits be payable at an age
30    earlier than that specified  in  this  Section  the  benefits
31    shall   begin  at  the  earlier  age,  in  which  event,  the
32    survivor's beneficiary shall be entitled only to that  amount
33    which  is  equal  to the actuarial equivalent of the benefits
34    provided by this Section.
 
                            -23-               LRB9107773LDsb
 1        (l)  The changes made to this Section and Section  15-131
 2    by  this  amendatory  Act  of  1997, relating to benefits for
 3    certain unmarried children who are full-time  students  under
 4    age  22,  apply without regard to whether the deceased member
 5    was in service  on  or  after  the  effective  date  of  this
 6    amendatory  Act  of 1997.  These changes do not authorize the
 7    repayment of a refund or a re-election of benefits,  and  any
 8    benefit  or increase in benefits resulting from these changes
 9    is not  payable  retroactively  for  any  period  before  the
10    effective date of this amendatory Act of 1997.
11    (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)

12        (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
13        Sec. 16-133.1.  Automatic annual increase in annuity.
14        (a)  Each  member with creditable service and retiring on
15    or after August 26, 1969 is entitled to the automatic  annual
16    increases  in  annuity  provided  under  this  Section  while
17    receiving  a  retirement  annuity  or  disability  retirement
18    annuity from the system.
19        An  annuitant  shall  first  be  entitled  to  an initial
20    increase under this Section on the January 1  next  following
21    the first anniversary of retirement, or January 1 of the year
22    next  following attainment of age 61, whichever is later.  At
23    such  time,  the  system  shall  pay  an   initial   increase
24    determined  as  follows:   1.5%  of  the  originally  granted
25    retirement   annuity   or   disability   retirement   annuity
26    multiplied  by  the number of years elapsed from the later of
27    (1) attainment of age 55, or  (2)  the  date  of  retirement,
28    until  January  1,  1972,  plus  2% of the originally granted
29    annuity multiplied by the number  of  years  elapsed  between
30    January  1,  1972  and  January  1,  1978,  plus  3%  of  the
31    originally  granted annuity multiplied by the number of years
32    elapsed between January 1, 1978 and the effective date of the
33    initial  increase.   However,  the  initial  annual  increase
 
                            -24-               LRB9107773LDsb
 1    calculated  under  this  Section  for  the  recipient  of   a
 2    disability  retirement annuity granted under Section 16-149.2
 3    shall be reduced by an amount  equal  to  the  total  of  all
 4    increases  in  that  annuity  received under Section 16-149.5
 5    (but not exceeding 100% of the amount of the initial increase
 6    otherwise provided under this Section).
 7        Following  the   initial   increase,   automatic   annual
 8    increases  in  annuity  shall  be  payable  on each January 1
 9    thereafter during the lifetime of the  annuitant,  determined
10    as  a percentage of the originally granted retirement annuity
11    or disability retirement annuity for increases granted  prior
12    to  January  1,  1990,  and calculated as a percentage of the
13    total amount of annuity, including previous  increases  under
14    this  Section,  for  increases granted on or after January 1,
15    1990, as follows:  1.5% for periods prior to January 1, 1972,
16    2% for periods after December 31, 1971 and prior  to  January
17    1, 1978, and 3% for periods after December 31, 1977.
18        (b)  The  automatic  annual increases in annuity provided
19    under this Section shall not be applicable  unless  a  member
20    has  made  contributions  toward  such increases for a period
21    equivalent to one full year of  creditable  service.    If  a
22    member  contributes  for  service  performed after August 26,
23    1969  but  the  member  becomes  an  annuitant  before   such
24    contributions  amount  to one full year's contributions based
25    on the salary at the date of retirement, he or  she  may  pay
26    the  necessary balance of the contributions to the system and
27    be eligible for the automatic  annual  increases  in  annuity
28    provided under this Section.
29        (c)  Each member shall make contributions toward the cost
30    of  the  automatic  annual  increases  in annuity as provided
31    under Section 16-152.
32        (d)  An  annuitant  receiving  a  retirement  annuity  or
33    disability  retirement  annuity  on   July   1,   1969,   who
34    subsequently  re-enters  service as a teacher is eligible for
 
                            -25-               LRB9107773LDsb
 1    the automatic annual increases in annuity provided under this
 2    Section if he or she renders at least one year of  creditable
 3    service following the latest re-entry.
 4        (e)  In  addition  to  the  automatic annual increases in
 5    annuity provided under this Section, an annuitant  who  meets
 6    the service requirements of this Section and whose retirement
 7    annuity  or  disability retirement annuity began on or before
 8    January 1,  1971  shall  receive,  on  January  1,  1981,  an
 9    increase  in  the  annuity  then being paid of one dollar per
10    month for each year of creditable  service.   On  January  1,
11    1982,  an  annuitant  whose  retirement annuity or disability
12    retirement annuity began on or before January 1,  1977  shall
13    receive  an  increase  in  the annuity then being paid of one
14    dollar per month for each year of creditable service.
15        On  January  1,  1987,  any  annuitant  whose  retirement
16    annuity began on or before January 1, 1977, shall receive  an
17    increase  in  the  monthly retirement annuity equal to 8¢ per
18    year of creditable service times the  number  of  years  that
19    have elapsed since the annuity began.
20        (f)  On  January  1,  2000,  every  annuitant  who  began
21    receiving  a  retirement annuity on or before January 1, 1991
22    shall have the monthly retirement  annuity  increased  by  an
23    amount equal to 25¢ multiplied by the number of full years of
24    creditable  service  multiplied  by  the number of full years
25    that have elapsed since the annuity began.   Every  annuitant
26    who  begins  receiving  a retirement annuity after January 1,
27    1991  and  before  July  1,  1998  shall  have  the   monthly
28    retirement  annuity  increased  on  January 1, 2000 or on the
29    January  1  occurring  on  or  next  following  the   seventh
30    anniversary  of  retirement, whichever is later, by an amount
31    equal to $1.75 multiplied by the  number  of  full  years  of
32    creditable  service  upon  which  the  retirement  annuity is
33    based.  The increase under this subsection shall be  included
34    in  the  calculation  of  increases granted simultaneously or
 
                            -26-               LRB9107773LDsb
 1    thereafter under subsection (a).
 2    (Source: P.A. 86-273; 86-1488.)

 3        (40 ILCS 5/16-143.1) (from Ch. 108 1/2, par. 16-143.1)
 4        Sec. 16-143.1.  Increase in survivor benefits.
 5        (a)  Beginning January 1, 1990, each  survivor's  benefit
 6    and  each  reversionary  annuity payable under Section 16-136
 7    shall be increased by 3%  of  the  currently  payable  amount
 8    thereof  (1)  on  each  January  1  occurring on or after the
 9    commencement of the annuity  if  the  deceased  teacher  died
10    while   receiving   a  retirement  or  disability  retirement
11    annuity, or (2) in other cases, on each January  1  occurring
12    on  or  after  the  first  anniversary of the granting of the
13    benefit, without regard to whether the deceased  teacher  was
14    in  service on or after the effective date of this amendatory
15    Act of 1991, but such increases  shall  not  accrue  for  any
16    period prior to January 1, 1990.
17        (b)  On   January   1,  1981,  any  beneficiary  who  was
18    receiving a survivor's monthly benefit on or  before  January
19    1,  1971, shall have the benefit then being paid increased by
20    1% for each full year elapsed from the  date  the  survivor's
21    benefit began.  On January 1, 1982, any beneficiary who began
22    receiving a survivor's monthly benefit after January 1, 1971,
23    but  before January 1, 1981 shall have the benefit then being
24    paid increased by 1% for each year elapsed from the date  the
25    survivor's benefit began.
26        On   January  1,  1987,  any  beneficiary  whose  monthly
27    survivor's benefit began on or before January 1, 1977,  shall
28    have  the monthly survivor's benefit increased by $1 for each
29    full year which has elapsed since  the  date  the  survivor's
30    benefit began.
31        (c)  On   January  1,  2000,  every  survivor  who  began
32    receiving a survivor's benefit on or before January  1,  1991
33    shall  have  the  monthly  survivor's benefit increased by an
 
                            -27-               LRB9107773LDsb
 1    amount equal to 25¢ multiplied by the number of full years of
 2    the deceased's creditable service multiplied by  the  sum  of
 3    (i)  the  number  of  full  years that have elapsed since the
 4    survivor's benefit began and (ii) the number of  full  years,
 5    if  any,  during  which  the  deceased  received a retirement
 6    annuity  under  this  Article.   Every  survivor  who  begins
 7    receiving a survivor's benefit  after  January  1,  1991  and
 8    before  January  1,  2000  shall  have the monthly survivor's
 9    benefit increased on January 1, 2000  or  on  the  January  1
10    occurring on or next following the seventh anniversary of the
11    commencement  of  the survivor's benefit, whichever is later,
12    by an amount equal to 25¢ multiplied by the  number  of  full
13    years  of the deceased's creditable service multiplied by the
14    sum of (i) the number of full years that have  elapsed  since
15    the  survivor's  benefit  began  and  (ii) the number of full
16    years,  if  any,  during  which  the  deceased   received   a
17    retirement  annuity  under  this Article.  The increase under
18    this subsection shall  be  included  in  the  calculation  of
19    increases   granted   simultaneously   or   thereafter  under
20    subsection (a).
21    (Source: P.A. 86-273; 86-1488.)

22        (40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
23        Sec. 17-119.  Automatic annual increase in pension.
24        (a)  Each teacher retiring on or after September 1, 1959,
25    is entitled  to  the  annual  increase  in  pension,  defined
26    herein, while he is receiving a pension from the Fund.
27             1.  The   term   "base   pension"  means  a  service
28        retirement or disability retirement pension in the amount
29        fixed and payable at the date of retirement of a teacher.
30             2.  The annual increase in pension shall be  at  the
31        rate of 1 1/2% of base pension. This increase shall first
32        occur  in  January  of  the year next following the first
33        anniversary of retirement. At such time  the  Fund  shall
 
                            -28-               LRB9107773LDsb
 1        pay the pro rata part of the increase for the period from
 2        the  first  anniversary  date  to  the  date of the first
 3        increase in pension. Beginning January 1, 1972, the  rate
 4        of  annual  increase  in  pension shall be 2% of the base
 5        pension. Beginning January 1, 1979, the  rate  of  annual
 6        increase  in  pension  shall  be  3% of the base pension.
 7        Beginning January 1, 1990, all automatic annual increases
 8        payable under this  Section  shall  be  calculated  as  a
 9        percentage  of  the  total pension payable at the time of
10        the increase, including all increases previously  granted
11        under this Article, notwithstanding Section 17-157.
12             3.  An  increase in pension shall be granted only if
13        the retired teacher is age 60 or  over.  If  the  teacher
14        attains  age 60 after retirement, the increase in pension
15        shall begin in January of the  year  following  the  61st
16        birthday.  At  such  time the Fund also shall pay the pro
17        rata part of the increase from the 61st birthday  to  the
18        date of first increase in pension.
19        (b)  In addition to other increases which may be provided
20    by  this  Section,  on  January  1,  1981 any teacher who was
21    receiving a retirement pension on or before January  1,  1971
22    shall  have  his retirement pension then being paid increased
23    $1 per month for each year of creditable service.  On January
24    1, 1982, any teacher whose retirement  pension  began  on  or
25    before  January  1,  1977,  shall have his retirement pension
26    then being paid increased $1  per  month  for  each  year  of
27    creditable service.
28        On  January 1, 1987, any teacher whose retirement pension
29    began on or before January 1, 1977, shall  have  the  monthly
30    retirement  pension  increased  by  an amount equal to 8¢ per
31    year of creditable service times the  number  of  years  that
32    have elapsed since the retirement pension began.
33        (c)  On  January  1,  2000,  every  pensioner  who  began
34    receiving  a  retirement pension on or before January 1, 1991
 
                            -29-               LRB9107773LDsb
 1    shall have the monthly retirement  pension  increased  by  an
 2    amount equal to 25¢ multiplied by the number of full years of
 3    creditable  service  multiplied  by  the number of full years
 4    that have elapsed since the pension began.   Every  pensioner
 5    who  begins  receiving  a retirement pension after January 1,
 6    1991  and  before  July  1,  1998  shall  have  the   monthly
 7    retirement  pension  increased  on  January 1, 2000 or on the
 8    January  1  occurring  on  or  next  following  the   seventh
 9    anniversary  of  retirement, whichever is later, by an amount
10    equal to $1.75 multiplied by the  number  of  full  years  of
11    creditable  service  upon  which  the  retirement  pension is
12    based.  The increase under this subsection shall be  included
13    in  the  calculation  of  increases granted simultaneously or
14    thereafter under subsection (a).   Section  17-157  does  not
15    apply to the increase provided under this subsection.
16    (Source: P.A. 90-566, eff. 1-2-98.)

17        (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
18        Sec. 17-122. Survivor's and children's pensions - Amount.
19        (a)  Upon  the  death  of  a teacher who has completed at
20    least 1 1/2 years of contributing service  with  either  this
21    Fund  or  the  State  Universities  Retirement  System or the
22    Teachers'  Retirement  System  of  the  State  of   Illinois,
23    provided  his  death  occurred  while  (a)  in active service
24    covered by  the  Fund  or  during  his  first  18  months  of
25    continuous  employment  without  a break in service under any
26    other  participating  system  as  defined  in  the   Illinois
27    Retirement   Systems   Reciprocal   Act   except   the  State
28    Universities Retirement System and the  Teachers'  Retirement
29    System of the State of Illinois, (b) on a creditable leave of
30    absence,  (c)  on a noncreditable leave of absence of no more
31    than one year, or (d)  a  pension  was  deferred  or  pending
32    provided  the  teacher  had  at  least  10 years of validated
33    service credit, or upon the death of  a  pensioner  otherwise
 
                            -30-               LRB9107773LDsb
 1    qualified   for   such  benefit,  the  surviving  spouse  and
 2    unmarried minor children of the deceased teacher under age 18
 3    shall be entitled to pensions, under  the  conditions  stated
 4    hereinafter.   Such  survivor's and children's pensions shall
 5    be based on the average of the 4 highest consecutive years of
 6    salary in the last 10 years of  service  or  on  the  average
 7    salary for total service, if total service has been less than
 8    4 years, according to the following percentages:
 9             30%  of  average  salary  or  50%  of the retirement
10        pension earned  by  the  teacher,  whichever  is  larger,
11        subject  to the prescribed maximum monthly payment, for a
12        surviving spouse alone on attainment of age 50;
13             60% of average salary for  a  surviving  spouse  and
14        eligible minor children of the deceased teacher.
15        If  no  eligible spouse survives, or the surviving spouse
16    remarries, or the parent of  the  children  of  the  deceased
17    member  is  otherwise  ineligible for a survivor's pension, a
18    children's pension for eligible minor children under  age  18
19    shall  be  paid  to  their parent or legal guardian for their
20    benefit according to the following percentages:
21             30% of average salary for one child;
22             60% of average salary for 2 or more children.
23        (b)  On January 1, 1981, any survivor or  child  who  was
24    receiving  a  survivor's  or  children's pension on or before
25    January 1, 1971, shall  have  his  survivor's  or  children's
26    pension  then  being  paid increased by 1% for each full year
27    which has elapsed  from  the  date  the  pension  began.   On
28    January  1,  1982,  any survivor or child whose pension began
29    after January 1, 1971, but before January 1, 1981, shall have
30    his  survivor's  or  children's  pension  then   being   paid
31    increased  1%  for  each full year which has elapsed from the
32    date the pension began.  On January 1, 1987, any survivor  or
33    child whose pension began on or before January 1, 1977, shall
34    have  the  monthly survivor's or children's pension increased
 
                            -31-               LRB9107773LDsb
 1    by $1 for each full year which has elapsed since the  pension
 2    began.
 3        (c)  On  January  1,  2000,  every  survivor or child who
 4    began receiving a survivor's  or  children's  pension  on  or
 5    before  January  1,  1991  shall  have  the  monthly  pension
 6    increased  by an amount equal to 25¢ multiplied by the number
 7    of full years of the deceased's creditable service multiplied
 8    by the sum of (i) the number of full years that have  elapsed
 9    since the survivor's or children's pension began and (ii) the
10    number  of  full  years,  if  any,  during which the deceased
11    received a retirement  pension  under  this  Article.   Every
12    survivor  or  child  who  begins  receiving  a  survivor's or
13    children's pension after January 1, 1991 and  before  January
14    1,  2000  shall have the monthly pension increased on January
15    1, 2000 or on the January 1 occurring on  or  next  following
16    the  seventh  anniversary of the commencement of the pension,
17    whichever is later, by an amount equal to 25¢  multiplied  by
18    the number of full years of the deceased's creditable service
19    multiplied  by  the  sum of (i) the number of full years that
20    have elapsed since the survivor's annuity began and (ii)  the
21    number  of  full  years,  if  any,  during which the deceased
22    received  a  retirement  pension  under  this  Article.   The
23    increase under this  subsection  shall  be  included  in  the
24    calculation of increases granted simultaneously or thereafter
25    under  subsection  (d).  Section 17-157 does not apply to the
26    increase provided under this subsection.
27        (d)  Beginning January  1,  1990,  every  survivor's  and
28    children's  pension  shall be increased (1) on each January 1
29    occurring on or after the commencement of the pension if  the
30    deceased  teacher  died while receiving a retirement pension,
31    or (2) in other cases, on each  January  1  occurring  on  or
32    after  the  first  anniversary  of  the  commencement  of the
33    pension, by an amount equal to 3% of the  current  amount  of
34    the pension, including all increases previously granted under
 
                            -32-               LRB9107773LDsb
 1    this Article, notwithstanding Section 17-157.  Such increases
 2    shall  apply  without  regard to whether the deceased teacher
 3    was in service  on  or  after  the  effective  date  of  this
 4    amendatory  Act  of 1991, but shall not accrue for any period
 5    prior to January 1, 1990.
 6        (e)  Subject  to  the  minimum  established  below,   the
 7    maximum amount of pension for a surviving spouse alone or one
 8    minor child shall be $400 per month, and the maximum combined
 9    pensions  for a surviving spouse and children of the deceased
10    teacher shall be $600 per  month,  with  individual  pensions
11    adjusted  for all beneficiaries pro rata to conform with this
12    limitation.   If  proration  is   unnecessary   the   minimum
13    survivor's  and  children's  pensions shall be $40 per month.
14    The minimum total survivor's and children's  pension  payable
15    upon  the  death  of  a contributor or annuitant which occurs
16    after  December  31,  1986,  shall  be  50%  of  the   earned
17    retirement   pension   of   such  contributor  or  annuitant,
18    calculated without early retirement discount in the  case  of
19    death in service.
20        On  death  after  retirement,  the  total  survivor's and
21    children's pensions shall not exceed the  monthly  retirement
22    or   disability   pension  paid  to  the  deceased  retirant.
23    Survivor's and children's benefits described in this  Section
24    shall apply to all service and disability pensioners eligible
25    for a pension as of July 1, 1981.
26    (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)

27        Section  90.  The State Mandates Act is amended by adding
28    Section 8.24 as follows:

29        (30 ILCS 805/8.24 new)
30        Sec. 8.24. Exempt mandate.   Notwithstanding  Sections  6
31    and  8 of this Act, no reimbursement by the State is required
32    for  the  implementation  of  any  mandate  created  by  this
 
                            -33-               LRB9107773LDsb
 1    amendatory Act of the 91st General Assembly.

 2        Section 99. Effective date.  This Act takes  effect  upon
 3    becoming law.

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