Public Act 93-0494
SB1476 Enrolled LRB093 10980 EFG 11590 b
AN ACT in relation to public employee benefits.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Pension Code is amended by
changing Section 2-119.1 as follows:
(40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
Sec. 2-119.1. Automatic increase in retirement annuity.
(a) A participant who retires after June 30, 1967, and
who has not received an initial increase under this Section
before the effective date of this amendatory Act of 1991,
shall, in January or July next following the first
anniversary of retirement, whichever occurs first, and in the
same month of each year thereafter, but in no event prior to
age 60, have the amount of the originally granted retirement
annuity increased as follows: for each year through 1971, 1
1/2%; for each year from 1972 through 1979, 2%; and for 1980
and each year thereafter, 3%. Annuitants who have received
an initial increase under this subsection prior to the
effective date of this amendatory Act of 1991 shall continue
to receive their annual increases in the same month as the
initial increase.
(b) Beginning January 1, 1990, for eligible participants
who remain in service after attaining 20 years of creditable
service, the 3% increases provided under subsection (a) shall
begin to accrue on the January 1 next following the date upon
which the participant (1) attains age 55, or (2) attains 20
years of creditable service, whichever occurs later, and
shall continue to accrue while the participant remains in
service; such increases shall become payable on January 1 or
July 1, whichever occurs first, next following the first
anniversary of retirement. For any person who has service
credit in the System for the entire period from January 15,
1969 through December 31, 1992, regardless of the date of
termination of service, the reference to age 55 in clause (1)
of this subsection (b) shall be deemed to mean age 50.
This subsection (b) does not apply to any person who
first becomes a member of the System after the effective date
of this amendatory Act of the 93rd General Assembly.
(c) The foregoing provisions relating to automatic
increases are not applicable to a participant who retires
before having made contributions (at the rate prescribed in
Section 2-126) for automatic increases for less than the
equivalent of one full year. However, in order to be
eligible for the automatic increases, such a participant may
make arrangements to pay to the system the amount required to
bring the total contributions for the automatic increase to
the equivalent of one year's contributions based upon his or
her last salary.
(d) A participant who terminated service prior to July
1, 1967, with at least 14 years of service is entitled to an
increase in retirement annuity beginning January, 1976, and
to additional increases in January of each year thereafter.
The initial increase shall be 1 1/2% of the originally
granted retirement annuity multiplied by the number of full
years that the annuitant was in receipt of such annuity
prior to January 1, 1972, plus 2% of the originally granted
retirement annuity for each year after that date. The
subsequent annual increases shall be at the rate of 2% of the
originally granted retirement annuity for each year through
1979 and at the rate of 3% for 1980 and thereafter.
(e) Beginning January 1, 1990, all automatic annual
increases payable under this Section shall be calculated as a
percentage of the total annuity payable at the time of the
increase, including previous increases granted under this
Article.
(Source: P.A. 86-273; 87-794; 87-1265.)
Section 99. Effective date. This Act takes effect upon
becoming law.