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    AN ACT concerning State government.

 
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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 2-108.1 and 18-125 as follows:
 



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    (40 ILCS 5/2-108.1)  (from Ch. 108 1/2, par. 2-108.1)



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    Sec. 2-108.1. Highest salary for annuity purposes. 

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    (a) "Highest salary for annuity purposes" means whichever 
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of
the following is applicable to the participant:

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    For a participant who first becomes a participant of this 
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System before the effective date of this amendatory Act of the 
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96th General Assembly: 

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        (1) For a participant who is a member of the General 
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    Assembly on his
or her last day of service: the highest 
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    salary that is prescribed by law,
on the participant's last 
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    day of service, for a member of the General
Assembly who is 
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    not an officer; plus, if the participant was elected or

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    appointed to serve as an officer of the General Assembly 
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    for 2 or more
years and has made contributions as required 
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    under subsection (d) of
Section 2-126, the highest 
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    additional amount of compensation prescribed by
law, at the 
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    time of the participant's service as an officer, for 
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    members of
the General Assembly who serve in that office.


 


 






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            (2) For a participant who holds one of the State 
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    executive offices
specified in Section 2-105 on his or her 
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    last day of service: the highest
salary prescribed by law 
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    for service in that office on the participant's
last day of 
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    service.


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        (3) For a participant who is Clerk or Assistant Clerk 
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    of the House of Representatives or Secretary or Assistant 
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    Secretary of the Senate
on his or her last day of service: 
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    the salary received for service in that
capacity on the 
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    last day of service, but not to exceed the highest salary

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    (including additional compensation for service as an 
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    officer) that is
prescribed by law on the participant's 
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    last day of service for the highest
paid officer of the 
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    General Assembly.


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        (4) For a participant who is a continuing participant 
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    under Section
2-117.1 on his or her last day of service: 
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    the salary received for service
in that capacity on the 
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    last day of service, but not to exceed the highest
salary 
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    (including additional compensation for service as an 
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    officer) that
is prescribed by law on the participant's 
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    last day of service for the
highest paid officer of the 
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    General Assembly.

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    For a participant who first becomes a participant of this 
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System on or after the effective date of this amendatory Act of 
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the 96th General Assembly, the average monthly salary obtained 
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by dividing the total salary of the participant during the 
 


 






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period of: (1) the 48 consecutive months of service within the 
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last 120 months of service in which the total compensation was 
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the highest, or (2) the total period of service, if less than 
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48 months, by the number of months of service in that period. 
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    (b) The earnings limitations of subsection (a) apply to 
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earnings
under any other participating system under the 
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Retirement Systems Reciprocal
Act that are considered in 
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calculating a proportional annuity under this
Article, except 
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in the case of a person who first became a member of this

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System before August 22,
1994.

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    (c) In calculating the subsection (a) earnings limitation 
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to be applied to
earnings under any other participating system 
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under the Retirement Systems
Reciprocal Act for the purpose of 
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calculating a proportional annuity under this
Article, the 
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participant's last day of service shall be deemed to mean the 
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last
day of service in any participating system from which the 
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person has applied
for a proportional annuity under the 
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Retirement Systems Reciprocal Act.

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(Source: P.A. 90-655, eff. 7-30-98.)


 



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    (40 ILCS 5/18-125)  (from Ch. 108 1/2, par. 18-125)


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    Sec. 18-125. Retirement annuity amount. 

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    (a) The annual retirement annuity for a participant who 
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terminated
service as a judge prior to July 1, 1971 shall be 
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based on the law in
effect at the time of termination of 
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service.

 


 






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    (b) Effective July 1, 1971, the retirement annuity for any 
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participant
in service on or after such date shall be 3 1/2% of 
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final average salary,
as defined in this Section, for each of 
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the first 10 years of service, and
5% of such final average 
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salary for each year of service on excess of 10.

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    For purposes of this Section, final average salary for a 
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participant who first serves a judge before the effective date 
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of this amendatory Act of the 96th General Assembly shall be:


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        (1) the average salary for the last 4 years of credited 
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    service as a
judge for a participant who terminates service 
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    before July 1, 1975.


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        (2) for a participant who terminates service after June 
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    30, 1975
and before July 1, 1982, the salary on the last 
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    day of employment as a judge.


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        (3) for any participant who terminates service after 
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    June 30, 1982 and
before January 1, 1990, the average 
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    salary for the final year of service as
a judge.


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        (4) for a participant who terminates service on or 
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    after January 1,
1990 but before the effective date of this 
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    amendatory Act of 1995, the
salary on the last day of 
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    employment as a judge.


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        (5) for a participant who terminates service on or 
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    after the effective
date of this amendatory Act of 1995, 
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    the salary on the last day of employment
as a judge, or the 
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    highest salary received by the participant for employment 
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    as
a judge in a position held by the participant for at 
 


 






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    least 4 consecutive years,
whichever is greater.

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    However, in the case of a participant who elects to 
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discontinue contributions
as provided in subdivision (a)(2) of 
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Section 18-133, the time of such
election shall be considered 
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the last day of employment in the determination
of final 
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average salary under this subsection.

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    For a participant who first serves a judge on or after the 
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effective date of this amendatory Act of the 96th General 
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Assembly, final average salary shall be the average monthly 
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salary obtained by dividing the total salary of the participant 
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during the period of: (1) the 48 consecutive months of service 
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within the last 120 months of service in which the total 
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compensation was the highest, or (2) the total period of 
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service, if less than 48 months, by the number of months of 
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service in that period. 
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    The maximum retirement annuity for any participant shall be 
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85% of final
average salary.

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    (c) The retirement annuity for a participant who retires 
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prior to age 60
with less than 28 years of service in the 
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System shall be reduced 1/2 of 1%
for each month that the 
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participant's age is under 60 years at the time the
annuity 
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commences.  However, for a participant who retires on or after 
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the
effective date of this amendatory Act of the 91st General 
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Assembly, the
percentage reduction in retirement annuity 
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imposed under this subsection shall
be reduced by 5/12 of 1% 
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for every month of service in this System in excess of
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years, and therefore a participant with at least 26 years of 
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service in this
System may retire at age 55 without any 
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reduction in annuity.

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    The reduction in retirement annuity imposed by this 
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subsection shall not
apply in the case of retirement on account 
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of disability.

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(Source: P.A. 91-653, eff. 12-10-99.)



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