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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB1198
Introduced 2/8/2007, by Sen. James A. DeLeo SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/5-132 |
from Ch. 108 1/2, par. 5-132 |
40 ILCS 5/5-148 |
from Ch. 108 1/2, par. 5-148 |
30 ILCS 805/8.31 new |
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Amends the Chicago Police Article of the Illinois Pension Code to provide an
increase in the retirement benefit formula. Changes the maximum annuity from
75% to 80% of average salary. Provides for 2.5% (rather than 2%) of average
salary for each year of service beyond 20. Applies to persons withdrawing from
service after the effective date. Amends the State Mandates Act to require
implementation without reimbursement. Effective immediately.
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FISCAL NOTE ACT MAY APPLY |
PENSION IMPACT NOTE ACT MAY APPLY |
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
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A BILL FOR
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SB1198 |
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LRB095 06684 AMC 26796 b |
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| AN ACT in relation to public employee benefits.
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| Be it enacted by the People of the State of Illinois, |
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| represented in the General Assembly:
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| Section 5. The Illinois Pension Code is amended by changing |
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| Sections 5-132
and 5-148 as follows:
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| (40 ILCS 5/5-132)
(from Ch. 108 1/2, par. 5-132)
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| Sec. 5-132. Minimum annuity. |
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| (1) Any policeman who withdraws on or after
July 8, 1957, |
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| or any policeman
transferred to the police service of the city |
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| under the Exchange of
Functions Act of 1957 who withdraws on or |
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| after July 17, 1959, after
completing at least 20 years of |
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| service, for whom the
annuity otherwise provided in this |
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| Article is less than that stated in this
Section has a right to |
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| receive annuity as follows:
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| (a) If he is age 55 or more on withdrawal, his annuity |
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| after such
withdrawal , shall be equal to 2% of the average |
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| salary for 4 consecutive
years of highest salaries within |
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| the last 10 years of service before
withdrawal, for each |
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| year of service, together with 1/6 of 1% of such
average |
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| salary for each complete month of service of each |
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| fractional year,
but not in excess of 75% of the average |
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| annual salary.
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| (b) If he is age 50 or more but less than age 55 on |
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LRB095 06684 AMC 26796 b |
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| withdrawal, his
annuity shall be equal to 2% of the average |
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| salary for the 4 highest
consecutive years of the last 10 |
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| years of service for each year of service,
together with |
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| 1/16 of 1% of such average salary for each month of each
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| fractional year of service, reduced by 1/2 of 1% for each |
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| month that he is
less than age 55.
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| (c) If he is less than age 50 on withdrawal, he may, |
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| upon attainment of
age 50 or over, become entitled to the |
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| annuity provided in this Section or,
he may, upon |
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| application before age 50, receive a refund of the |
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| deductions
from salary, plus interest at 1 1/2% per annum |
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| if he is entitled to refund
under Section 5-163.
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| (d) In lieu of the annuity provided in the foregoing |
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| provisions of this
Section 5-132 any policeman who |
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| withdraws from the service after December
31, 1973, after |
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| having attained age 53 in the service with
23 or more years |
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| of service credit shall be entitled to an
annuity computed |
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| as follows if such annuity is greater than that provided
in |
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| the foregoing paragraphs of this Section 5-132: An annuity |
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| equal to
50% of the average salary for the 4
highest |
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| consecutive years of the last 10 years of service plus
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| additional annuity equal to 2% of such average salary for |
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| each completed
year of service or fraction
thereof rendered |
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| after his attainment of age 53 and the completion
of 23 |
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| years of service.
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| Any policeman who has completed 23 years of service |
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LRB095 06684 AMC 26796 b |
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| prior to
his attainment of age 53 in the service and |
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| continues in the
service until his attainment of age 53 |
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| shall have added to his
annuity, computed as provided in |
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| the immediately preceding paragraph, an
additional annuity |
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| equal to 1% of such average salary for each
completed year |
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| of service or fraction thereof in excess of 23
years up to |
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| age 53.
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| (e) In lieu of the annuity provided in the foregoing |
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| provisions of this
Section any policeman who withdraws from |
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| the service either (i) after
December 31, 1983 with at |
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| least 22 years of service credit and having
attained age 52 |
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| in the service, or (ii) after December 31, 1984 with at
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| least 21 years of service credit and having attained age 51 |
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| in the service,
or (iii) after December 31, 1985 with at |
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| least 20 years of service credit
and having attained age 50 |
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| in the service, or (iv) after December 31,
1990, with at |
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| least 20 years of service credit regardless of age, shall
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| be entitled to an annuity to begin not earlier than upon |
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| attainment of
age 50 if under such age at withdrawal, |
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| computed as follows: an annuity
equal to 50% of the average |
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| salary for the 4 highest consecutive years of the
last 10 |
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| years of service, plus additional annuity equal to 2% of |
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| such average
salary for each completed year of service or |
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| fraction thereof rendered after
his completion of the |
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| minimum number of years of service required for him to be
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| eligible under this subsection (e). In lieu of any annuity |
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| provided in the
foregoing provisions of this Section, any |
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| policeman who withdraws from the
service after December 31, |
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| 2003, with at least 20 years of service credit
regardless |
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| of age, shall be entitled to an annuity to begin not |
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| earlier than
upon attainment of age 50, if under that age |
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| at withdrawal, equal to 2.5% of
the average salary for the |
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| 4 highest consecutive years of the last 10 years of
service |
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| for each completed year of service or fraction thereof. |
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| However,
the annuity provided under this subsection (e) may |
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| not exceed 75% of such
average salary.
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| (f) In lieu of the annuity provided in the foregoing |
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| provisions
of this Section, a policeman who withdraws from |
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| service after
the effective date of this amendatory Act of |
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| the 95th General Assembly
with at least 20 years of service |
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| credit may elect to receive an annuity,
to begin not |
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| earlier than upon attainment of age 50 if under that age at
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| withdrawal, equal to 50% of average salary plus 2.5% of |
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| average salary for
each completed year of service or |
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| fraction thereof in excess of 20, but not
to exceed a |
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| maximum of 80% of average salary. |
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| (2) A policeman withdrawing after September 1, 1969, may, |
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| in addition, be
entitled to the benefits provided by Section |
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| 5-167.1 of this Article if he
so qualifies under that Section.
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| (3) If, on withdrawal, total service is less than 20 years, |
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| the policeman
shall not be entitled to an annuity under this |
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| Section but may receive an
annuity under the other provisions |
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LRB095 06684 AMC 26796 b |
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| of this Article or, if entitled thereto
under Section 5--163, a |
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| refund of the deductions from salary, including, in
the case of |
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| policemen transferred to the police service of the city under
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| the Exchange of Functions Act of 1957, the additional |
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| contribution paid on
salary received from August 1, 1957, to |
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| July 17, 1959, as provided in the
Park Policemen's Annuity Act, |
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| together with interest at 1 1/2% per annum.
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| Moneys voluntarily contributed under the Policemen's |
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| Annuity and Benefit
Fund Act of the Illinois Municipal Code, or |
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| the Park Policemen's Annuity
Act, shall be refunded to the |
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| contributing policemen who were in service on
January 1, 1954, |
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| or in the case of policemen transferred to the police
service |
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| of the city under the Exchange of Functions Act of 1957, who |
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| were
in service on July 17, 1959.
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| The age and service annuity formula in this Section shall |
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| not apply to
any policeman who, having retired before July 8, |
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| 1957, or before July 17,
1959, in the case of a policeman |
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| transferred under the provisions of the
Exchange of Functions |
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| Act of 1957, re-enters the police service after such
dates, |
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| whichever are applicable.
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| (4) For the purpose of this Section and Section 5-148, |
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| "average salary"
means the average of the highest 4 consecutive |
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| years of salary within the last
10 years of service.
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| (Source: P.A. 93-654, eff. 1-16-04.)
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| (40 ILCS 5/5-148) (from Ch. 108 1/2, par. 5-148)
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LRB095 06684 AMC 26796 b |
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| Sec. 5-148. Maximum annuities. No annuity in excess of 75% |
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| of the highest
salary considered for annuity purposes in |
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| accordance with this Article
(80% of average salary in the case |
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| of a policeman whose annuity is
calculated under subdivision |
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| (1)(f) of Section 5-132)
shall be payable to a policeman, or to |
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| the widow of a policeman
whose death results from injury |
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| incurred in the performance of an act of
duty. No amount of |
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| annuity in excess of $500 per month shall be payable
to the |
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| widow of a policeman whose death results from any cause other
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| than injury incurred in the performance of an act of duty, |
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| except as
provided in Section 5-136.1.
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| If, when a policeman's annuity is fixed, there is to his |
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| credit, for such
annuity, an amount in excess of that necessary |
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| to provide an annuity of 75%
of his highest salary (80% of |
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| average salary in the case of a policeman whose
annuity is |
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| calculated under subdivision (1)(f) of Section 5-132) , 7/24 of
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| such excess shall be refunded if the policeman is a future |
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| entrant; and if he
is a present employee, there shall be |
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| refunded , a part of such excess
amount proportionately equal to |
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| that part of the entire amount to his credit
for such annuity |
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| purposes, which the sum that has resulted from salary
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| deductions bears to such entire amount.
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| Until January 1, 1986, if, when a widow's annuity is fixed, |
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| there is to the
policeman's credit, for widow's annuity, an |
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| amount in excess of that necessary
to provide an annuity of |
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| $500 per month, 1/3 of such excess shall be refunded
to the |
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LRB095 06684 AMC 26796 b |
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| policeman if he is a future entrant; and, if he is a present |
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| employee,
there shall be refunded a part of such excess amount |
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| proportionately equal to
that part of the entire amount to his |
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| credit for such annuity purposes which
the sum that has |
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| resulted from employee contributions bears to such entire
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| amount. If the widow's annuity is fixed on or after January 1, |
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| 1986, no refund
of excess contributions shall be made under |
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| this paragraph.
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| Until January 1, 1986, if at the time of the death of a |
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| policeman
resulting from injury
incurred in the performance of |
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| an act of duty, there is to his credit,
for widow's annuity, an |
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| amount in excess of that necessary to provide an
annuity of 75% |
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| of his highest salary, or $500 per month if death results
from |
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| any other cause, 1/3 of such excess shall be refunded to his |
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| widow
if he was a future entrant; and, if he was a present |
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| employee, there
shall be refunded to his widow a part of such |
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| excess amount
proportionately equal to that part of the entire |
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| amount to his credit
for such annuity purposes which the sum |
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| that has resulted from employee's
contributions bears to such |
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| entire amount. If employee dies in service
on or after January |
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| 1, 1986, no refund of excess contributions shall be
made under |
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| this paragraph.
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| This amendatory Act of 1972 does not increase the amount of |
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| any
widow's annuity which is fixed before the effective date of |
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| this
amendatory Act of 1972.
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| (Source: P.A. 84-1104.)
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