[ Back ] [ Bottom ]
91_HB1582enr
HB1582 Enrolled LRB9101659EGfg
1 AN ACT in relation to 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
5 changing Sections 14-107, 14-108, 14-114, 16-132, 16-133, and
6 16-133.1 as follows:
7 (40 ILCS 5/14-107) (from Ch. 108 1/2, par. 14-107)
8 Sec. 14-107. Retirement annuity - service and age -
9 conditions. A member is entitled to a retirement annuity
10 after having at least 8 years of creditable service.
11 A member who has at least 35 years of creditable service
12 may claim his or her retirement annuity at any age. A member
13 having at least 8 years of creditable service but less than
14 35 may claim his or her retirement annuity upon or after
15 attainment of age 60 or, beginning January 1, 2001, any
16 lesser age which, when added to the number of years of his or
17 her creditable service, equals at least 85. A member upon or
18 after attainment of age 55 having at least 25 years 30 years
19 of creditable service (30 years if retirement is before
20 January 1, 2001) may elect to receive the lower retirement
21 annuity provided in paragraph (c) of Section 14-108 of this
22 Code. For purposes of the rule of 85, portions of years
23 shall be counted in whole months.
24 The allowance shall begin with the first full calendar
25 month specified in the member's application therefor, the
26 first day of which shall not be before the date of withdrawal
27 as approved by the board. Regardless of the date of
28 withdrawal, the allowance need not begin within one year of
29 application therefor.
30 (Source: P.A. 82-342.)
HB1582 Enrolled -2- LRB9101659EGfg
1 (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
2 Sec. 14-108. Amount of retirement annuity. A member who
3 has contributed to the System for at least 12 months shall be
4 entitled to a prior service annuity for each year of
5 certified prior service credited to him, except that a member
6 shall receive 1/3 of the prior service annuity for each year
7 of service for which contributions have been made and all of
8 such annuity shall be payable after the member has made
9 contributions for a period of 3 years. Proportionate amounts
10 shall be payable for service of less than a full year after
11 completion of at least 12 months.
12 The total period of service to be considered in
13 establishing the measure of prior service annuity shall
14 include service credited in the Teachers' Retirement System
15 of the State of Illinois and the State Universities
16 Retirement System for which contributions have been made by
17 the member to such systems; provided that at least 1 year of
18 the total period of 3 years prescribed for the allowance of a
19 full measure of prior service annuity shall consist of
20 membership service in this system for which credit has been
21 granted.
22 (a) In the case of a member who retires on or after
23 January 1, 1998 and is a noncovered employee, the retirement
24 annuity for membership service and prior service shall be
25 2.2% of final average compensation for each year of service.
26 Any service credit established as a covered employee shall be
27 computed as stated in paragraph (b).
28 (b) In the case of a member who retires on or after
29 January 1, 1998 and is a covered employee, the retirement
30 annuity for membership service and prior service shall be
31 computed as stated in paragraph (a) for all service credit
32 established as a noncovered employee; for service credit
33 established as a covered employee it shall be 1.67% of final
34 average compensation for each year of service.
HB1582 Enrolled -3- LRB9101659EGfg
1 (c) For a member with 30 but less than 35 years of
2 creditable service retiring after attaining age 55 but before
3 age 60 with at least 30 but less than 35 years of creditable
4 service if retirement is before January 1, 2001, or with at
5 least 25 but less than 30 years of creditable service if
6 retirement is on or after January 1, 2001, the retirement
7 annuity shall be reduced by 1/2 of 1% for each month that the
8 member's age is under age 60 at the time of retirement.
9 (d) A retirement annuity shall not exceed 75% of final
10 average compensation, subject to such extension as may result
11 from the application of Section 14-114 or Section 14-115.
12 (e) The retirement annuity payable to any covered
13 employee who is a member of the System and in service on
14 January 1, 1969, or in service thereafter in 1969 as a result
15 of legislation enacted by the Illinois General Assembly
16 transferring the member to State employment from county
17 employment in a county Department of Public Aid in counties
18 of 3,000,000 or more population, under a plan of coordination
19 with the Old Age, Survivors and Disability provisions
20 thereof, if not fully insured for Old Age Insurance payments
21 under the Federal Old Age, Survivors and Disability Insurance
22 provisions at the date of acceptance of a retirement annuity,
23 shall not be less than the amount for which the member would
24 have been eligible if coordination were not applicable.
25 (f) The retirement annuity payable to any covered
26 employee who is a member of the System and in service on
27 January 1, 1969, or in service thereafter in 1969 as a result
28 of the legislation designated in the immediately preceding
29 paragraph, if fully insured for Old Age Insurance payments
30 under the Federal Social Security Act at the date of
31 acceptance of a retirement annuity, shall not be less than an
32 amount which when added to the Primary Insurance Benefit
33 payable to the member upon attainment of age 65 under such
34 Federal Act, will equal the annuity which would otherwise be
HB1582 Enrolled -4- LRB9101659EGfg
1 payable if the coordinated plan of coverage were not
2 applicable.
3 (g) In the case of a member who is a noncovered
4 employee, the retirement annuity for membership service as a
5 security employee of the Department of Corrections or
6 security employee of the Department of Human Services shall
7 be 1.9% of final average compensation for each of the first
8 10 years of service,; 2.1% for each of the next 10 years of
9 service,; 2.25% for each year of service in excess of 20 but
10 not exceeding 30,; and 2.5% for each year in excess of 30;
11 except that the annuity may be calculated under subsection
12 (a) rather than this subsection (g) if the resulting annuity
13 is greater.
14 (h) In the case of a member who is a covered employee,
15 the retirement annuity for membership service as a security
16 employee of the Department of Corrections or security
17 employee of the Department of Human Services shall be 1.67%
18 of final average compensation for each of the first 10 years
19 of service,; 1.90% for each of the next 10 years of service,;
20 2.10% for each year of service in excess of 20 but not
21 exceeding 30,; and 2.30% for each year in excess of 30.
22 (i) For the purposes of this Section and Section 14-133
23 of this Act, the term "security employee of the Department of
24 Corrections" and the term "security employee of the
25 Department of Human Services" shall have the meanings
26 ascribed to them in subsection (c) of Section 14-110.
27 (j) The retirement annuity computed pursuant to
28 paragraphs (g) or (h) shall be applicable only to those
29 security employees of the Department of Corrections and
30 security employees of the Department of Human Services who
31 have at least 20 years of membership service and who are not
32 eligible for the alternative retirement annuity provided
33 under Section 14-110. However, persons transferring to this
34 System under Section 14-108.2 who have service credit under
HB1582 Enrolled -5- LRB9101659EGfg
1 Article 16 of this Code may count such service toward
2 establishing their eligibility under the 20-year service
3 requirement of this subsection; but such service may be used
4 only for establishing such eligibility, and not for the
5 purpose of increasing or calculating any benefit.
6 (k) (Blank).
7 (l) The changes to this Section made by this amendatory
8 Act of 1997 (changing certain retirement annuity formulas
9 from a stepped rate to a flat rate) apply to members who
10 retire on or after January 1, 1998, without regard to whether
11 employment terminated before the effective date of this
12 amendatory Act of 1997. An annuity shall not be calculated
13 in steps by using the new flat rate for some steps and the
14 superseded stepped rate for other steps of the same type of
15 service.
16 (Source: P.A. 89-507, eff. 7-1-97; 90-65, eff. 7-7-97;
17 90-448, eff. 8-16-97; 90-655, eff. 7-30-98.)
18 (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
19 Sec. 14-114. Automatic increase in retirement annuity.
20 (a) Any person receiving a retirement annuity under this
21 Article who retires having attained age 60, or who retires
22 before age 60 having at least 35 years of creditable service,
23 or who retires on or after January 1, 2001 at an age which,
24 when added to the number of years of his or her creditable
25 service, equals at least 85, shall, on January 1, next
26 following the first full year of retirement, have the amount
27 of the then fixed and payable monthly retirement annuity
28 increased 3%. Any person receiving a retirement annuity
29 under this Article who retires before attainment of age 60
30 and with less than (i) 35 years of creditable service if
31 retirement is before January 1, 2001, or (ii) the number of
32 years of creditable service which, when added to the member's
33 age, would equal 85, if retirement is on or after January 1,
HB1582 Enrolled -6- LRB9101659EGfg
1 2001, shall have the amount of the fixed and payable
2 retirement annuity increased by 3% on the January 1 occurring
3 on or next following (1) attainment of age 60, or (2) the
4 first anniversary of retirement, whichever occurs later.
5 However, for persons who receive the alternative retirement
6 annuity under Section 14-110, references in this subsection
7 (a) to attainment of age 60 shall be deemed to refer to
8 attainment of age 55. For a person receiving early
9 retirement incentives under Section 14-108.3 whose retirement
10 annuity began after January 1, 1992 pursuant to an extension
11 granted under subsection (e) of that Section, the first
12 anniversary of retirement shall be deemed to be January 1,
13 1993.
14 On each January 1 following the date of the initial
15 increase under this subsection, the employee's monthly
16 retirement annuity shall be increased by an additional 3%.
17 Beginning January 1, 1990, all automatic annual increases
18 payable under this Section shall be calculated as a
19 percentage of the total annuity payable at the time of the
20 increase, including previous increases granted under this
21 Article.
22 (b) The provisions of subsection (a) of this Section
23 shall be applicable to an employee only if the employee makes
24 the additional contributions required after December 31, 1969
25 for the purpose of the automatic increases for not less than
26 the equivalent of one full year. If an employee becomes an
27 annuitant before his additional contributions equal one full
28 year's contributions based on his salary at the date of
29 retirement, the employee may pay the necessary balance of the
30 contributions to the system, without interest, and be
31 eligible for the increasing annuity authorized by this
32 Section.
33 (c) The provisions of subsection (a) of this Section
34 shall not be applicable to any annuitant who is on retirement
HB1582 Enrolled -7- LRB9101659EGfg
1 on December 31, 1969, and thereafter returns to State
2 service, unless the member has established at least one year
3 of additional creditable service following reentry into
4 service.
5 (d) In addition to other increases which may be provided
6 by this Section, on January 1, 1981 any annuitant who was
7 receiving a retirement annuity on or before January 1, 1971
8 shall have his retirement annuity then being paid increased
9 $1 per month for each year of creditable service. On January
10 1, 1982, any annuitant who began receiving a retirement
11 annuity on or before January 1, 1977, shall have his
12 retirement annuity then being paid increased $1 per month for
13 each year of creditable service.
14 On January 1, 1987, any annuitant who began receiving a
15 retirement annuity on or before January 1, 1977, shall have
16 the monthly retirement annuity increased by an amount equal
17 to 8¢ per year of creditable service times the number of
18 years that have elapsed since the annuity began.
19 (e) Every person who receives the alternative retirement
20 annuity under Section 14-110 and who is eligible to receive
21 the 3% increase under subsection (a) on January 1, 1986,
22 shall also receive on that date a one-time increase in
23 retirement annuity equal to the difference between (1) his
24 actual retirement annuity on that date, including any
25 increases received under subsection (a), and (2) the amount
26 of retirement annuity he would have received on that date if
27 the amendments to subsection (a) made by Public Act 84-162
28 had been in effect since the date of his retirement.
29 (Source: P.A. 86-273; 87-1265.)
30 (40 ILCS 5/16-132) (from Ch. 108 1/2, par. 16-132)
31 Sec. 16-132. Retirement annuity eligibility. A member
32 who has at least 20 years of creditable service is entitled
33 to a retirement annuity upon or after attainment of age 55.
HB1582 Enrolled -8- LRB9101659EGfg
1 A member who has at least 10 but less than 20 years of
2 creditable service is entitled to a retirement annuity upon
3 or after attainment of age 60. A member who has at least 5
4 but less than 10 years of creditable service is entitled to a
5 retirement annuity upon or after attainment of age 62. A
6 member who (i) has earned during the period immediately
7 preceding the last day of service at least one year of
8 contributing creditable service as an employee of a
9 department as defined in Section 14-103.04, (ii) has earned
10 at least 5 years of contributing creditable service as an
11 employee of a department as defined in Section 14-103.04, and
12 (iii) retires on or after January 1, 2001 is entitled to a
13 retirement annuity upon or after attainment of an age which,
14 when added to the number of years of his or her total
15 creditable service, equals at least 85. Portions of years
16 shall be counted as decimal equivalents.
17 A member who is eligible to receive a retirement annuity
18 of at least 74.6% of final average salary and will attain age
19 55 on or before December 31 during the year which commences
20 on July 1 shall be deemed to attain age 55 on the preceding
21 June 1.
22 A member meeting the above eligibility conditions is
23 entitled to a retirement annuity upon written application to
24 the board setting forth the date the member wishes the
25 retirement annuity to commence. However, the effective date
26 of the retirement annuity shall be no earlier than the day
27 following the last day of creditable service, regardless of
28 the date of official termination of employment. To be
29 eligible for a retirement annuity, a member shall not be
30 employed as a teacher in the schools included under this
31 System or under Article 17, unless the member is disabled (in
32 which event, eligibility for salary must cease), or unless
33 the System is required by federal law to commence payment due
34 to the member's age; the changes to this sentence made by
HB1582 Enrolled -9- LRB9101659EGfg
1 this amendatory Act of 1991 shall apply without regard to
2 whether the member terminated employment before or after its
3 effective date.
4 (Source: P.A. 90-582, eff. 5-27-98.)
5 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
6 Sec. 16-133. Retirement annuity; amount.
7 (a) The amount of the retirement annuity shall be the
8 larger of the amounts determined under paragraphs (A) and (B)
9 below:
10 (A) An amount consisting of the sum of the
11 following:
12 (1) An amount that can be provided on an
13 actuarially equivalent basis by the member's
14 accumulated contributions at the time of retirement;
15 and
16 (2) The sum of (i) the amount that can be
17 provided on an actuarially equivalent basis by the
18 member's accumulated contributions representing
19 service prior to July 1, 1947, and (ii) the amount
20 that can be provided on an actuarially equivalent
21 basis by the amount obtained by multiplying 1.4
22 times the member's accumulated contributions
23 covering service subsequent to June 30, 1947; and
24 (3) If there is prior service, 2 times the
25 amount that would have been determined under
26 subparagraph (2) of paragraph (A) above on account
27 of contributions which would have been made during
28 the period of prior service creditable to the member
29 had the System been in operation and had the member
30 made contributions at the contribution rate in
31 effect prior to July 1, 1947.
32 (B) An amount consisting of the greater of the
33 following:
HB1582 Enrolled -10- LRB9101659EGfg
1 (1) For creditable service earned before July
2 1, 1998 that has not been augmented under Section
3 16-129.1: 1.67% of final average salary for each of
4 the first 10 years of creditable service, 1.90% of
5 final average salary for each year in excess of 10
6 but not exceeding 20, 2.10% of final average salary
7 for each year in excess of 20 but not exceeding 30,
8 and 2.30% of final average salary for each year in
9 excess of 30; and
10 For creditable service earned on or after July
11 1, 1998 by a member who has at least 24 years of
12 creditable service on July 1, 1998 and who does not
13 elect to augment service under Section 16-129.1:
14 2.2% of final average salary for each year of
15 creditable service earned on or after July 1, 1998
16 but before the member reaches a total of 30 years of
17 creditable service and 2.3% of final average salary
18 for each year of creditable service earned on or
19 after July 1, 1998 and after the member reaches a
20 total of 30 years of creditable service; and
21 For all other creditable service: 2.2% of
22 final average salary for each year of creditable
23 service; or
24 (2) 1.5% of final average salary for each year
25 of creditable service plus the sum $7.50 for each of
26 the first 20 years of creditable service.
27 The amount of the retirement annuity determined under
28 this paragraph (B) shall be reduced by 1/2 of 1% for each
29 month that the member is less than age 60 at the time the
30 retirement annuity begins. However, this reduction shall
31 not apply (i) if the member has at least 35 years of
32 creditable service, or (ii) if the member retires on
33 account of disability under Section 16-149.2 of this
34 Article with at least 20 years of creditable service, or
HB1582 Enrolled -11- LRB9101659EGfg
1 (iii) if the member (1) has earned during the period
2 immediately preceding the last day of service at least
3 one year of contributing creditable service as an
4 employee of a department as defined in Section 14-103.04,
5 (2) has earned at least 5 years of contributing
6 creditable service as an employee of a department as
7 defined in Section 14-103.04, (3) retires on or after
8 January 1, 2001, and (4) retires having attained an age
9 which, when added to the number of years of his or her
10 total creditable service, equals at least 85. Portions
11 of years shall be counted as decimal equivalents.
12 (b) For purposes of this Section, final average salary
13 shall be the average salary for the highest 4 consecutive
14 years within the last 10 years of creditable service as
15 determined under rules of the board. The minimum final
16 average salary shall be considered to be $2,400 per year.
17 In the determination of final average salary for members
18 other than elected officials and their appointees when such
19 appointees are allowed by statute, that part of a member's
20 salary for any year beginning after June 30, 1979 which
21 exceeds the member's annual full-time salary rate with the
22 same employer for the preceding year by more than 20% shall
23 be excluded. The exclusion shall not apply in any year in
24 which the member's creditable earnings are less than 50% of
25 the preceding year's mean salary for downstate teachers as
26 determined by the survey of school district salaries provided
27 in Section 2-3.103 of the School Code.
28 (c) In determining the amount of the retirement annuity
29 under paragraph (B) of this Section, a fractional year shall
30 be granted proportional credit.
31 (d) The retirement annuity determined under paragraph
32 (B) of this Section shall be available only to members who
33 render teaching service after July 1, 1947 for which member
34 contributions are required, and to annuitants who re-enter
HB1582 Enrolled -12- LRB9101659EGfg
1 under the provisions of Section 16-150.
2 (e) The maximum retirement annuity provided under
3 paragraph (B) of this Section shall be 75% of final average
4 salary.
5 (f) A member retiring after the effective date of this
6 amendatory Act of 1998 shall receive a pension equal to 75%
7 of final average salary if the member is qualified to receive
8 a retirement annuity equal to at least 74.6% of final average
9 salary under this Article or as proportional annuities under
10 Article 20 of this Code.
11 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99;
12 91-887, eff. 7-6-00.)
13 (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
14 Sec. 16-133.1. Automatic annual increase in annuity.
15 (a) Each member with creditable service and retiring on
16 or after August 26, 1969 is entitled to the automatic annual
17 increases in annuity provided under this Section while
18 receiving a retirement annuity or disability retirement
19 annuity from the system.
20 An annuitant shall first be entitled to an initial
21 increase under this Section on the January 1 next following
22 the first anniversary of retirement, or January 1 of the year
23 next following attainment of age 61, whichever is later. At
24 such time, the system shall pay an initial increase
25 determined as follows:
26 (1) 1.5% of the originally granted retirement
27 annuity or disability retirement annuity multiplied by
28 the number of years elapsed, if any, from the later of
29 (1) attainment of age 55, or (2) the date of retirement,
30 until January 1, 1972, plus
31 (2) 2% of the originally granted annuity multiplied
32 by the number of years elapsed, if any, from the date of
33 retirement or between January 1, 1972, whichever is
HB1582 Enrolled -13- LRB9101659EGfg
1 later, until and January 1, 1978, plus
2 (3) 3% of the originally granted annuity multiplied
3 by the number of years elapsed from the date of
4 retirement or between January 1, 1978, whichever is
5 later, until and the effective date of the initial
6 increase.
7 However, the initial annual increase calculated under this
8 Section for the recipient of a disability retirement annuity
9 granted under Section 16-149.2 shall be reduced by an amount
10 equal to the total of all increases in that annuity received
11 under Section 16-149.5 (but not exceeding 100% of the amount
12 of the initial increase otherwise provided under this
13 Section).
14 Following the initial increase, automatic annual
15 increases in annuity shall be payable on each January 1
16 thereafter during the lifetime of the annuitant, determined
17 as a percentage of the originally granted retirement annuity
18 or disability retirement annuity for increases granted prior
19 to January 1, 1990, and calculated as a percentage of the
20 total amount of annuity, including previous increases under
21 this Section, for increases granted on or after January 1,
22 1990, as follows: 1.5% for periods prior to January 1, 1972,
23 2% for periods after December 31, 1971 and prior to January
24 1, 1978, and 3% for periods after December 31, 1977.
25 (b) The automatic annual increases in annuity provided
26 under this Section shall not be applicable unless a member
27 has made contributions toward such increases for a period
28 equivalent to one full year of creditable service. If a
29 member contributes for service performed after August 26,
30 1969 but the member becomes an annuitant before such
31 contributions amount to one full year's contributions based
32 on the salary at the date of retirement, he or she may pay
33 the necessary balance of the contributions to the system and
34 be eligible for the automatic annual increases in annuity
HB1582 Enrolled -14- LRB9101659EGfg
1 provided under this Section.
2 (c) Each member shall make contributions toward the cost
3 of the automatic annual increases in annuity as provided
4 under Section 16-152.
5 (d) An annuitant receiving a retirement annuity or
6 disability retirement annuity on July 1, 1969, who
7 subsequently re-enters service as a teacher is eligible for
8 the automatic annual increases in annuity provided under this
9 Section if he or she renders at least one year of creditable
10 service following the latest re-entry.
11 (e) In addition to the automatic annual increases in
12 annuity provided under this Section, an annuitant who meets
13 the service requirements of this Section and whose retirement
14 annuity or disability retirement annuity began on or before
15 January 1, 1971 shall receive, on January 1, 1981, an
16 increase in the annuity then being paid of one dollar per
17 month for each year of creditable service. On January 1,
18 1982, an annuitant whose retirement annuity or disability
19 retirement annuity began on or before January 1, 1977 shall
20 receive an increase in the annuity then being paid of one
21 dollar per month for each year of creditable service.
22 On January 1, 1987, any annuitant whose retirement
23 annuity began on or before January 1, 1977, shall receive an
24 increase in the monthly retirement annuity equal to 8¢ per
25 year of creditable service times the number of years that
26 have elapsed since the annuity began.
27 (Source: P.A. 86-273; 86-1488.)
28 Section 99. Effective date. This Act takes effect upon
29 becoming law.
[ Top ]