99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4669

 

Introduced , by Rep. Kelly Burke

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/2-108.1  from Ch. 108 1/2, par. 2-108.1
40 ILCS 5/2-119.1  from Ch. 108 1/2, par. 2-119.1
40 ILCS 5/2-121.1  from Ch. 108 1/2, par. 2-121.1
40 ILCS 5/2-126  from Ch. 108 1/2, par. 2-126
40 ILCS 5/18-125  from Ch. 108 1/2, par. 18-125
40 ILCS 5/18-125.1  from Ch. 108 1/2, par. 18-125.1
40 ILCS 5/18-128.01  from Ch. 108 1/2, par. 18-128.01
40 ILCS 5/18-133  from Ch. 108 1/2, par. 18-133

    Amends the General Assembly and Judges Articles of the Illinois Pension Code. Changes the manner in which highest salary for annuity purposes, final average salary, automatic annual increases, and survivor benefits are calculated for persons who first become participants of either system on or after the effective date of the amendatory Act. Also makes technical changes.


LRB099 16679 RPS 41017 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB4669LRB099 16679 RPS 41017 b

1    AN ACT concerning pensions.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 2-108.1, 2-119.1, 2-121.1, 2-126, 18-125, 18-125.1,
618-128.01, and 18-133 as follows:
 
7    (40 ILCS 5/2-108.1)  (from Ch. 108 1/2, par. 2-108.1)
8    (Text of Section WITHOUT the changes made by P.A. 98-599,
9which has been held unconstitutional)
10    Sec. 2-108.1. Highest salary for annuity purposes.
11    (a) "Highest salary for annuity purposes" means whichever
12of the following is applicable to the participant:
13    For a participant who first becomes a participant of this
14System before August 10, 2009 (the effective date of Public Act
1596-207):
16        (1) For a participant who is a member of the General
17    Assembly on his or her last day of service: the highest
18    salary that is prescribed by law, on the participant's last
19    day of service, for a member of the General Assembly who is
20    not an officer; plus, if the participant was elected or
21    appointed to serve as an officer of the General Assembly
22    for 2 or more years and has made contributions as required
23    under subsection (d) of Section 2-126, the highest

 

 

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1    additional amount of compensation prescribed by law, at the
2    time of the participant's service as an officer, for
3    members of the General Assembly who serve in that office.
4        (2) For a participant who holds one of the State
5    executive offices specified in Section 2-105 on his or her
6    last day of service: the highest salary prescribed by law
7    for service in that office on the participant's last day of
8    service.
9        (3) For a participant who is Clerk or Assistant Clerk
10    of the House of Representatives or Secretary or Assistant
11    Secretary of the Senate on his or her last day of service:
12    the salary received for service in that capacity on the
13    last day of service, but not to exceed the highest salary
14    (including additional compensation for service as an
15    officer) that is prescribed by law on the participant's
16    last day of service for the highest paid officer of the
17    General Assembly.
18        (4) For a participant who is a continuing participant
19    under Section 2-117.1 on his or her last day of service:
20    the salary received for service in that capacity on the
21    last day of service, but not to exceed the highest salary
22    (including additional compensation for service as an
23    officer) that is prescribed by law on the participant's
24    last day of service for the highest paid officer of the
25    General Assembly.
26    For a participant who first becomes a participant of this

 

 

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1System on or after August 10, 2009 (the effective date of
2Public Act 96-207) and before January 1, 2011 (the effective
3date of Public Act 96-889), the average monthly salary obtained
4by dividing the total salary of the participant during the
5period of: (1) the 48 consecutive months of service within the
6last 120 months of service in which the total compensation was
7the highest, or (2) the total period of service, if less than
848 months, by the number of months of service in that period.
9    For a participant who first becomes a participant of this
10System on or after January 1, 2011 (the effective date of
11Public Act 96-889) but before the effective date of this
12amendatory Act of the 99th General Assembly, the average
13monthly salary obtained by dividing the total salary of the
14participant during the 96 consecutive months of service within
15the last 120 months of service in which the total compensation
16was the highest by the number of months of service in that
17period; however, beginning January 1, 2011, the highest salary
18for annuity purposes may not exceed $106,800, except that that
19amount shall annually thereafter be increased by the lesser of
20(i) 3% of that amount, including all previous adjustments, or
21(ii) the annual unadjusted percentage increase (but not less
22than zero) in the consumer price index-u for the 12 months
23ending with the September preceding each November 1.
24    For a participant who first becomes a participant of this
25System on or after the effective date of this amendatory Act of
26the 99th General Assembly, the average monthly salary obtained

 

 

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1by dividing the total salary of the participant during the 96
2consecutive months of service within the last 120 months of
3service in which the total compensation was the highest by the
4number of months of service in that period; however, the
5highest salary for annuity purposes may not exceed in any year
6the salary limitation determined for that year by the Public
7Pension Division of the Department of Insurance under
8subsection (b-5) of Section 1-160 of this Code.
9    (a-5) "Consumer price index-u" means the index published by
10the Bureau of Labor Statistics of the United States Department
11of Labor that measures the average change in prices of goods
12and services purchased by all urban consumers, United States
13city average, all items, 1982-84 = 100.
14    The new amount resulting from each annual adjustment shall
15be determined by the Public Pension Division of the Department
16of Insurance shall determine in October of each year (i) the
17annual unadjusted percentage increase (but not less than zero)
18in the consumer price index-u for the 12 months ending with the
19preceding September and (ii) the salary limitation under
20subsection (a) for the following year for the category of
21participants who first become participants of this System on or
22after January 1, 2011 but before the effective date of this
23amendatory Act of the 99th General Assembly. The Division shall
24make these determinations and made available to the Board by
25November 1 of each year.
26    (b) The earnings limitations of subsection (a) apply to

 

 

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1earnings under any other participating system under the
2Retirement Systems Reciprocal Act that are considered in
3calculating a proportional annuity under this Article, except
4in the case of a person who first became a member of this
5System before August 22, 1994 and has not, on or after the
6effective date of this amendatory Act of the 97th General
7Assembly, irrevocably elected to have those limitations apply.
8The limitations of subsection (a) shall apply, however, to
9earnings under any other participating system under the
10Retirement Systems Reciprocal Act that are considered in
11calculating the proportional annuity of a person who first
12became a member of this System before August 22, 1994 if, on or
13after the effective date of this amendatory Act of the 97th
14General Assembly, that member irrevocably elects to have those
15limitations apply.
16    (c) In calculating the subsection (a) earnings limitation
17to be applied to earnings under any other participating system
18under the Retirement Systems Reciprocal Act for the purpose of
19calculating a proportional annuity under this Article, the
20participant's last day of service shall be deemed to mean the
21last day of service in any participating system from which the
22person has applied for a proportional annuity under the
23Retirement Systems Reciprocal Act.
24(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
2596-1490, eff. 1-1-11; 97-967, eff. 8-16-12.)
 

 

 

HB4669- 6 -LRB099 16679 RPS 41017 b

1    (40 ILCS 5/2-119.1)  (from Ch. 108 1/2, par. 2-119.1)
2    (Text of Section WITHOUT the changes made by P.A. 98-599,
3which has been held unconstitutional)
4    Sec. 2-119.1. Automatic increase in retirement annuity.
5    (a) Except as otherwise provided in this Section, a A
6participant who retires after June 30, 1967, and who has not
7received an initial increase under this Section before the
8effective date of this amendatory Act of 1991, shall, in
9January or July next following the first anniversary of
10retirement, whichever occurs first, and in the same month of
11each year thereafter, but in no event prior to age 60, have the
12amount of the originally granted retirement annuity increased
13as follows: for each year through 1971, 1 1/2%; for each year
14from 1972 through 1979, 2%; and for 1980 and each year
15thereafter, 3%. Annuitants who have received an initial
16increase under this subsection prior to the effective date of
17this amendatory Act of 1991 shall continue to receive their
18annual increases in the same month as the initial increase.
19    (b) Beginning January 1, 1990, for eligible participants
20who remain in service after attaining 20 years of creditable
21service, the 3% increases provided under subsection (a) shall
22begin to accrue on the January 1 next following the date upon
23which the participant (1) attains age 55, or (2) attains 20
24years of creditable service, whichever occurs later, and shall
25continue to accrue while the participant remains in service;
26such increases shall become payable on January 1 or July 1,

 

 

HB4669- 7 -LRB099 16679 RPS 41017 b

1whichever occurs first, next following the first anniversary of
2retirement. For any person who has service credit in the System
3for the entire period from January 15, 1969 through December
431, 1992, regardless of the date of termination of service, the
5reference to age 55 in clause (1) of this subsection (b) shall
6be deemed to mean age 50.
7    This subsection (b) does not apply to any person who first
8becomes a member of the System after the effective date of this
9amendatory Act of the 93rd General Assembly.
10    (b-5) Notwithstanding any other provision of this Article,
11a participant who first becomes a participant on or after
12January 1, 2011 (the effective date of Public Act 96-889) but
13before the effective date of this amendatory Act of the 99th
14General Assembly shall, in January or July next following the
15first anniversary of retirement, whichever occurs first, and in
16the same month of each year thereafter, but in no event prior
17to age 67, have the amount of the retirement annuity then being
18paid increased by 3% or the annual unadjusted percentage
19increase in the Consumer Price Index for All Urban Consumers as
20determined by the Public Pension Division of the Department of
21Insurance under subsection (a-5) (a) of Section 2-108.1,
22whichever is less.
23    (b-10) Notwithstanding any other provision of this
24Article, a participant who first becomes a participant on or
25after the effective date of this amendatory Act of the 99th
26General Assembly shall, in January or July next following the

 

 

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1first anniversary of retirement, whichever occurs first, and in
2the same month of each year thereafter, but in no event prior
3to age 67, have the annuity increased by 3% or one-half the
4annual unadjusted percentage increase (but not less than zero)
5in the Consumer Price Index for All Urban Consumers as
6determined by the Public Pension Division of the Department of
7Insurance under subsection (a-5) of Section 2-108.1, whichever
8is less, of the originally granted retirement annuity.
9    (c) The foregoing provisions relating to automatic
10increases are not applicable to a participant who retires
11before having made contributions (at the rate prescribed in
12Section 2-126) for automatic increases for less than the
13equivalent of one full year. However, in order to be eligible
14for the automatic increases, such a participant may make
15arrangements to pay to the system the amount required to bring
16the total contributions for the automatic increase to the
17equivalent of one year's contributions based upon his or her
18last salary.
19    (d) A participant who terminated service prior to July 1,
201967, with at least 14 years of service is entitled to an
21increase in retirement annuity beginning January, 1976, and to
22additional increases in January of each year thereafter.
23    The initial increase shall be 1 1/2% of the originally
24granted retirement annuity multiplied by the number of full
25years that the annuitant was in receipt of such annuity prior
26to January 1, 1972, plus 2% of the originally granted

 

 

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1retirement annuity for each year after that date. The
2subsequent annual increases shall be at the rate of 2% of the
3originally granted retirement annuity for each year through
41979 and at the rate of 3% for 1980 and thereafter.
5    (e) Except as otherwise provided in this Section, beginning
6Beginning January 1, 1990, all automatic annual increases
7payable under this Section shall be calculated as a percentage
8of the total annuity payable at the time of the increase,
9including previous increases granted under this Article.
10(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
11    (40 ILCS 5/2-121.1)  (from Ch. 108 1/2, par. 2-121.1)
12    Sec. 2-121.1. Survivor's annuity - amount.
13    (a) A surviving spouse shall be entitled to 66 2/3% of the
14amount of retirement annuity to which the participant or
15annuitant was entitled on the date of death, without regard to
16whether the participant had attained age 55 prior to his or her
17death, subject to a minimum payment of 10% of salary. If a
18surviving spouse, regardless of age, has in his or her care at
19the date of death any eligible child or children of the
20participant, the survivor's annuity shall be the greater of the
21following: (1) 66 2/3% of the amount of retirement annuity to
22which the participant or annuitant was entitled on the date of
23death, or (2) 30% of the participant's salary increased by 10%
24of salary on account of each such child, subject to a total
25payment for the surviving spouse and children of 50% of salary.

 

 

HB4669- 10 -LRB099 16679 RPS 41017 b

1If eligible children survive but there is no surviving spouse,
2or if the surviving spouse dies or becomes disqualified by
3remarriage while eligible children survive, each eligible
4child shall be entitled to an annuity of 20% of salary, subject
5to a maximum total payment for all such children of 50% of
6salary.
7    However, the survivor's annuity payable under this Section
8shall not be less than 100% of the amount of retirement annuity
9to which the participant or annuitant was entitled on the date
10of death, if he or she is survived by a dependent disabled
11child.
12    The salary to be used for determining these benefits shall
13be the salary used for determining the amount of retirement
14annuity as provided in Section 2-119.01.
15    (b) Upon the death of a participant after the termination
16of service or upon death of an annuitant, the maximum total
17payment to a surviving spouse and eligible children, or to
18eligible children alone if there is no surviving spouse, shall
19be 75% of the retirement annuity to which the participant or
20annuitant was entitled, unless there is a dependent disabled
21child among the survivors.
22    (c) When a child ceases to be an eligible child, the
23annuity to that child, or to the surviving spouse on account of
24that child, shall thereupon cease, and the annuity payable to
25the surviving spouse or other eligible children shall be
26recalculated if necessary.

 

 

HB4669- 11 -LRB099 16679 RPS 41017 b

1    Upon the ineligibility of the last eligible child, the
2annuity shall immediately revert to the amount payable upon
3death of a participant or annuitant who leaves no eligible
4children. If the surviving spouse is then under age 50, the
5annuity as revised shall be deferred until the attainment of
6age 50.
7    (d) Except as otherwise provided in this Section, beginning
8Beginning January 1, 1990, every survivor's annuity shall be
9increased (1) on each January 1 occurring on or after the
10commencement of the annuity if the deceased member died while
11receiving a retirement annuity, or (2) in other cases, on each
12January 1 occurring on or after the first anniversary of the
13commencement of the annuity, by an amount equal to 3% of the
14current amount of the annuity, including any previous increases
15under this Article. Such increases shall apply without regard
16to whether the deceased member was in service on or after the
17effective date of this amendatory Act of 1991, but shall not
18accrue for any period prior to January 1, 1990.
19    (d-5) Notwithstanding any other provision of this Article,
20the initial survivor's annuity of a survivor of a participant
21who first becomes a participant on or after January 1, 2011
22(the effective date of Public Act 96-889) but before the
23effective date of this amendatory Act of the 99th General
24Assembly shall be in the amount of 66 2/3% of the amount of the
25retirement annuity to which the participant or annuitant was
26entitled on the date of death and shall be increased (1) on

 

 

HB4669- 12 -LRB099 16679 RPS 41017 b

1each January 1 occurring on or after the commencement of the
2annuity if the deceased member died while receiving a
3retirement annuity or (2) in other cases, on each January 1
4occurring on or after the first anniversary of the commencement
5of the annuity, by an amount equal to 3% or the annual
6unadjusted percentage increase in the Consumer Price Index for
7All Urban Consumers as determined by the Public Pension
8Division of the Department of Insurance under subsection (a-5)
9(a) of Section 2-108.1, whichever is less, of the survivor's
10annuity then being paid.
11    (d-10) Notwithstanding any other provision of this
12Article, the initial survivor's annuity of a survivor of a
13participant who first becomes a participant on or after the
14effective date of this amendatory Act of the 99th General
15Assembly shall be in the amount of 66 2/3% of the amount of the
16retirement annuity to which the participant or annuitant was
17entitled on the date of death and shall be increased (1) on
18each January 1 occurring on or after the commencement of the
19annuity if the deceased member died while receiving a
20retirement annuity or (2) in other cases, on each January 1
21occurring on or after the first anniversary of the commencement
22of the annuity, by an amount equal to 3% or one-half the annual
23unadjusted percentage increase (but not less than zero) in the
24Consumer Price Index for All Urban Consumers as determined by
25the Public Pension Division of the Department of Insurance
26under subsection (a-5) of Section 2-108.1, whichever is less,

 

 

HB4669- 13 -LRB099 16679 RPS 41017 b

1of the originally granted survivor's annuity.
2    (e) Notwithstanding any other provision of this Article,
3beginning January 1, 1990, the minimum survivor's annuity
4payable to any person who is entitled to receive a survivor's
5annuity under this Article shall be $300 per month, without
6regard to whether or not the deceased participant was in
7service on the effective date of this amendatory Act of 1989.
8    (f) In the case of a proportional survivor's annuity
9arising under the Retirement Systems Reciprocal Act where the
10amount payable by the System on January 1, 1993 is less than
11$300 per month, the amount payable by the System shall be
12increased beginning on that date by a monthly amount equal to
13$2 for each full year that has expired since the annuity began.
14(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
15    (40 ILCS 5/2-126)  (from Ch. 108 1/2, par. 2-126)
16    (Text of Section WITHOUT the changes made by P.A. 98-599,
17which has been held unconstitutional)
18    Sec. 2-126. Contributions by participants.
19    (a) Each participant shall contribute toward the cost of
20his or her retirement annuity a percentage of each payment of
21salary received by him or her for service as a member as
22follows: for service between October 31, 1947 and January 1,
231959, 5%; for service between January 1, 1959 and June 30,
241969, 6%; for service between July 1, 1969 and January 10,
251973, 6 1/2%; for service after January 10, 1973, 7%; for

 

 

HB4669- 14 -LRB099 16679 RPS 41017 b

1service after December 31, 1981, 8 1/2%.
2    (b) Beginning August 2, 1949, each male participant, and
3from July 1, 1971, each female participant shall contribute
4towards the cost of the survivor's annuity 2% of salary.
5    A participant who has no eligible survivor's annuity
6beneficiary may elect to cease making contributions for
7survivor's annuity under this subsection. A survivor's annuity
8shall not be payable upon the death of a person who has made
9this election, unless prior to that death the election has been
10revoked and the amount of the contributions that would have
11been paid under this subsection in the absence of the election
12is paid to the System, together with interest at the rate of 4%
13per year from the date the contributions would have been made
14to the date of payment.
15    (c) Beginning July 1, 1967, each participant shall
16contribute 1% of salary towards the cost of automatic increase
17in annuity provided in Section 2-119.1. These contributions
18shall be made concurrently with contributions for retirement
19annuity purposes.
20    (d) In addition, each participant serving as an officer of
21the General Assembly shall contribute, for the same purposes
22and at the same rates as are required of a regular participant,
23on each additional payment received as an officer. If the
24participant serves as an officer for at least 2 but less than 4
25years, he or she shall contribute an amount equal to the amount
26that would have been contributed had the participant served as

 

 

HB4669- 15 -LRB099 16679 RPS 41017 b

1an officer for 4 years. Persons who serve as officers in the
287th General Assembly but cannot receive the additional payment
3to officers because of the ban on increases in salary during
4their terms may nonetheless make contributions based on those
5additional payments for the purpose of having the additional
6payments included in their highest salary for annuity purposes;
7however, persons electing to make these additional
8contributions must also pay an amount representing the
9corresponding employer contributions, as calculated by the
10System.
11    (e) Notwithstanding any other provision of this Article,
12the required contribution of a participant who first becomes a
13participant on or after January 1, 2011 shall not be based on
14any salary in excess of the applicable annually-adjusted
15limitation on exceed the contribution that would be due under
16this Article if that participant's highest salary for annuity
17purposes were $106,800, plus any increases in that amount under
18Section 2-108.1.
19(Source: P.A. 96-1490, eff. 1-1-11.)
 
20    (40 ILCS 5/18-125)  (from Ch. 108 1/2, par. 18-125)
21    Sec. 18-125. Retirement annuity amount.
22    (a) The annual retirement annuity for a participant who
23terminated service as a judge prior to July 1, 1971 shall be
24based on the law in effect at the time of termination of
25service.

 

 

HB4669- 16 -LRB099 16679 RPS 41017 b

1    (b) Except as provided in subsection (b-5), effective July
21, 1971, the retirement annuity for any participant in service
3on or after such date shall be 3 1/2% of final average salary,
4as defined in this Section, for each of the first 10 years of
5service, and 5% of such final average salary for each year of
6service on excess of 10.
7    For purposes of this Section, final average salary for a
8participant who first serves as a judge before August 10, 2009
9(the effective date of Public Act 96-207) shall be:
10        (1) the average salary for the last 4 years of credited
11    service as a judge for a participant who terminates service
12    before July 1, 1975.
13        (2) for a participant who terminates service after June
14    30, 1975 and before July 1, 1982, the salary on the last
15    day of employment as a judge.
16        (3) for any participant who terminates service after
17    June 30, 1982 and before January 1, 1990, the average
18    salary for the final year of service as a judge.
19        (4) for a participant who terminates service on or
20    after January 1, 1990 but before the effective date of this
21    amendatory Act of 1995, the salary on the last day of
22    employment as a judge.
23        (5) for a participant who terminates service on or
24    after the effective date of this amendatory Act of 1995,
25    the salary on the last day of employment as a judge, or the
26    highest salary received by the participant for employment

 

 

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1    as a judge in a position held by the participant for at
2    least 4 consecutive years, whichever is greater.
3    However, in the case of a participant who elects to
4discontinue contributions as provided in subdivision (a)(2) of
5Section 18-133, the time of such election shall be considered
6the last day of employment in the determination of final
7average salary under this subsection.
8    For a participant who first serves as a judge on or after
9August 10, 2009 (the effective date of Public Act 96-207) and
10before January 1, 2011 (the effective date of Public Act
1196-889), final average salary shall be the average monthly
12salary obtained by dividing the total salary of the participant
13during the period of: (1) the 48 consecutive months of service
14within the last 120 months of service in which the total
15compensation was the highest, or (2) the total period of
16service, if less than 48 months, by the number of months of
17service in that period.
18    The maximum retirement annuity for any participant shall be
1985% of final average salary.
20    (b-5) Notwithstanding any other provision of this Article,
21for a participant who first serves as a judge on or after
22January 1, 2011 (the effective date of Public Act 96-889), the
23annual retirement annuity is 3% of the participant's final
24average salary for each year of service. The maximum retirement
25annuity payable shall be 60% of the participant's final average
26salary.

 

 

HB4669- 18 -LRB099 16679 RPS 41017 b

1    For a participant who first serves as a judge on or after
2January 1, 2011 (the effective date of Public Act 96-889) but
3before the effective date of this amendatory Act of the 99th
4General Assembly, final average salary shall be the average
5monthly salary obtained by dividing the total salary of the
6judge during the 96 consecutive months of service within the
7last 120 months of service in which the total salary was the
8highest by the number of months of service in that period;
9however, beginning January 1, 2011, the annual salary may not
10exceed $106,800, except that that amount shall annually
11thereafter be increased by the lesser of (i) 3% of that amount,
12including all previous adjustments, or (ii) the annual
13unadjusted percentage increase (but not less than zero) in the
14consumer price index-u for the 12 months ending with the
15September preceding each November 1.
16    For a participant who first serves as a judge on or after
17the effective date of this amendatory Act of the 99th General
18Assembly, final average salary shall be the average monthly
19salary obtained by dividing the total salary of the judge
20during the 96 consecutive months of service within the last 120
21months of service in which the total salary was the highest by
22the number of months of service in that period; however, the
23annual salary may not exceed in any year the salary limitation
24determined for that year by the Public Pension Division of the
25Department of Insurance under subsection (b-5) of Section 1-160
26of this Code.

 

 

HB4669- 19 -LRB099 16679 RPS 41017 b

1    (b-10) "Consumer price index-u" means the index published
2by the Bureau of Labor Statistics of the United States
3Department of Labor that measures the average change in prices
4of goods and services purchased by all urban consumers, United
5States city average, all items, 1982-84 = 100.
6    The new amount resulting from each annual adjustment shall
7be determined by the Public Pension Division of the Department
8of Insurance shall determine in October of each year (i) the
9annual unadjusted percentage increase (but not less than zero)
10in the consumer price index-u for the 12 months ending with the
11preceding September and (ii) the salary limitation under
12subsection (b-5) of this Section for the following year for the
13category of participants who first serve as a judge on or after
14January 1, 2011 but before the effective date of this
15amendatory Act of the 99th General Assembly. The Division shall
16make these determinations and made available to the Board by
17November 1st of each year.
18    (c) The retirement annuity for a participant who retires
19prior to age 60 with less than 28 years of service in the
20System shall be reduced 1/2 of 1% for each month that the
21participant's age is under 60 years at the time the annuity
22commences. However, for a participant who retires on or after
23the effective date of this amendatory Act of the 91st General
24Assembly, the percentage reduction in retirement annuity
25imposed under this subsection shall be reduced by 5/12 of 1%
26for every month of service in this System in excess of 20

 

 

HB4669- 20 -LRB099 16679 RPS 41017 b

1years, and therefore a participant with at least 26 years of
2service in this System may retire at age 55 without any
3reduction in annuity.
4    The reduction in retirement annuity imposed by this
5subsection shall not apply in the case of retirement on account
6of disability.
7    (d) Notwithstanding any other provision of this Article,
8for a participant who first serves as a judge on or after
9January 1, 2011 (the effective date of Public Act 96-889) and
10who is retiring after attaining age 62, the retirement annuity
11shall be reduced by 1/2 of 1% for each month that the
12participant's age is under age 67 at the time the annuity
13commences.
14(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
1596-1000, eff. 7-2-10; 96-1490, eff. 1-1-11.)
 
16    (40 ILCS 5/18-125.1)  (from Ch. 108 1/2, par. 18-125.1)
17    Sec. 18-125.1. Automatic increase in retirement annuity.
18Except as otherwise provided in this Section, a A participant
19who retires from service after June 30, 1969, shall, in January
20of the year next following the year in which the first
21anniversary of retirement occurs, and in January of each year
22thereafter, have the amount of his or her originally granted
23retirement annuity increased as follows: for each year up to
24and including 1971, 1 1/2%; for each year from 1972 through
251979 inclusive, 2%; and for 1980 and each year thereafter, 3%.

 

 

HB4669- 21 -LRB099 16679 RPS 41017 b

1    Notwithstanding any other provision of this Article, a
2retirement annuity for a participant who first serves as a
3judge on or after January 1, 2011 (the effective date of Public
4Act 96-889) but before the effective date of this amendatory
5Act of the 99th General Assembly shall be increased in January
6of the year next following the year in which the first
7anniversary of retirement occurs, but in no event prior to age
867, and in January of each year thereafter, by an amount equal
9to 3% or the annual percentage increase in the consumer price
10index-u as determined by the Public Pension Division of the
11Department of Insurance under subsection (b-10) (b-5) of
12Section 18-125, whichever is less, of the retirement annuity
13then being paid.
14    Notwithstanding any other provision of this Article, a
15retirement annuity for a participant who first serves as a
16judge on or after the effective date of this amendatory Act of
17the 99th General Assembly shall be increased in January of the
18year next following the year in which the first anniversary of
19retirement occurs, but in no event prior to age 67, and in
20January of each year thereafter, by an amount equal to 3% or
21one-half the annual unadjusted percentage increase (but not
22less than zero) in the consumer price index-u as determined by
23the Public Pension Division of the Department of Insurance
24under subsection (b-10) of Section 18-125, whichever is less,
25of the originally granted retirement annuity.
26    This Section is not applicable to a participant who retires

 

 

HB4669- 22 -LRB099 16679 RPS 41017 b

1before he or she has made contributions at the rate prescribed
2in Section 18-133 for automatic increases for not less than the
3equivalent of one full year, unless such a participant arranges
4to pay the system the amount required to bring the total
5contributions for the automatic increase to the equivalent of
6one year's contribution based upon his or her last year's
7salary.
8    This Section is applicable to all participants in service
9after June 30, 1969 unless a participant has elected, prior to
10September 1, 1969, in a written direction filed with the board
11not to be subject to the provisions of this Section. Any
12participant in service on or after July 1, 1992 shall have the
13option of electing prior to April 1, 1993, in a written
14direction filed with the board, to be covered by the provisions
15of the 1969 amendatory Act. Such participant shall be required
16to make the aforesaid additional contributions with compound
17interest at 4% per annum.
18    Any participant who has become eligible to receive the
19maximum rate of annuity and who resumes service as a judge
20after receiving a retirement annuity under this Article shall
21have the amount of his or her retirement annuity increased by
223% of the originally granted annuity amount for each year of
23such resumed service, beginning in January of the year next
24following the date of such resumed service, upon subsequent
25termination of such resumed service.
26    Beginning January 1, 1990, all automatic annual increases

 

 

HB4669- 23 -LRB099 16679 RPS 41017 b

1payable under this Section shall be calculated as a percentage
2of the total annuity payable at the time of the increase,
3including previous increases granted under this Article.
4(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
5    (40 ILCS 5/18-128.01)  (from Ch. 108 1/2, par. 18-128.01)
6    Sec. 18-128.01. Amount of survivor's annuity.
7    (a) Upon the death of an annuitant, his or her surviving
8spouse shall be entitled to a survivor's annuity of 66 2/3% of
9the annuity the annuitant was receiving immediately prior to
10his or her death, inclusive of annual increases in the
11retirement annuity to the date of death.
12    (b) Upon the death of an active participant, his or her
13surviving spouse shall receive a survivor's annuity of 66 2/3%
14of the annuity earned by the participant as of the date of his
15or her death, determined without regard to whether the
16participant had attained age 60 as of that time, or 7 1/2% of
17the last salary of the decedent, whichever is greater.
18    (c) Upon the death of a participant who had terminated
19service with at least 10 years of service, his or her surviving
20spouse shall be entitled to a survivor's annuity of 66 2/3% of
21the annuity earned by the deceased participant at the date of
22death.
23    (d) Upon the death of an annuitant, active participant, or
24participant who had terminated service with at least 10 years
25of service, each surviving child under the age of 18 or

 

 

HB4669- 24 -LRB099 16679 RPS 41017 b

1disabled as defined in Section 18-128 shall be entitled to a
2child's annuity in an amount equal to 5% of the decedent's
3final salary, not to exceed in total for all such children the
4greater of 20% of the decedent's last salary or 66 2/3% of the
5annuity received or earned by the decedent as provided under
6subsections (a) and (b) of this Section. This child's annuity
7shall be paid whether or not a survivor's annuity was elected
8under Section 18-123.
9    (e) The changes made in the survivor's annuity provisions
10by Public Act 82-306 shall apply to the survivors of a deceased
11participant or annuitant whose death occurs on or after August
1221, 1981.
13    (f) Except as otherwise provided in this Section, beginning
14Beginning January 1, 1990, every survivor's annuity shall be
15increased (1) on each January 1 occurring on or after the
16commencement of the annuity if the deceased member died while
17receiving a retirement annuity, or (2) in other cases, on each
18January 1 occurring on or after the first anniversary of the
19commencement of the annuity, by an amount equal to 3% of the
20current amount of the annuity, including any previous increases
21under this Article. Such increases shall apply without regard
22to whether the deceased member was in service on or after the
23effective date of this amendatory Act of 1991, but shall not
24accrue for any period prior to January 1, 1990.
25    (g) Notwithstanding any other provision of this Article,
26the initial survivor's annuity for a survivor of a participant

 

 

HB4669- 25 -LRB099 16679 RPS 41017 b

1who first serves as a judge after January 1, 2011 (the
2effective date of Public Act 96-889) but before the effective
3date of this amendatory Act of the 99th General Assembly shall
4be in the amount of 66 2/3% of the annuity received or earned
5by the decedent, and shall be increased (1) on each January 1
6occurring on or after the commencement of the annuity if the
7deceased participant died while receiving a retirement
8annuity, or (2) in other cases, on each January 1 occurring on
9or after the first anniversary of the commencement of the
10annuity, but in no event prior to age 67, by an amount equal to
113% or the annual unadjusted percentage increase in the consumer
12price index-u as determined by the Public Pension Division of
13the Department of Insurance under subsection (b-10) (b-5) of
14Section 18-125, whichever is less, of the survivor's annuity
15then being paid.
16    (h) Notwithstanding any other provision of this Article,
17the initial survivor's annuity for a survivor of a participant
18who first serves as a judge on or after the effective date of
19this amendatory Act of the 99th General Assembly shall be in
20the amount of 66 2/3% of the annuity received or earned by the
21decedent, and shall be increased (1) on each January 1
22occurring on or after the commencement of the annuity if the
23deceased participant died while receiving a retirement
24annuity, or (2) in other cases, on each January 1 occurring on
25or after the first anniversary of the commencement of the
26annuity, but in no event prior to age 67, by an amount equal to

 

 

HB4669- 26 -LRB099 16679 RPS 41017 b

13% or one-half the annual unadjusted percentage increase (but
2not less than zero) in the consumer price index-u as determined
3by the Public Pension Division of the Department of Insurance
4under subsection (b-10) of Section 18-125, whichever is less,
5of the originally granted survivor's annuity.
6(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
7    (40 ILCS 5/18-133)  (from Ch. 108 1/2, par. 18-133)
8    Sec. 18-133. Financing; employee contributions.
9    (a) Effective July 1, 1967, each participant is required to
10contribute 7 1/2% of each payment of salary toward the
11retirement annuity. Such contributions shall continue during
12the entire time the participant is in service, with the
13following exceptions:
14        (1) Contributions for the retirement annuity are not
15    required on salary received after 18 years of service by
16    persons who were participants before January 2, 1954.
17        (2) A participant who continues to serve as a judge
18    after becoming eligible to receive the maximum rate of
19    annuity may elect, through a written direction filed with
20    the Board, to discontinue contributing to the System. Any
21    such option elected by a judge shall be irrevocable unless
22    prior to January 1, 2000, and while continuing to serve as
23    judge, the judge (A) files with the Board a letter
24    cancelling the direction to discontinue contributing to
25    the System and requesting that such contributing resume,

 

 

HB4669- 27 -LRB099 16679 RPS 41017 b

1    and (B) pays into the System an amount equal to the total
2    of the discontinued contributions plus interest thereon at
3    5% per annum. Service credits earned in any other
4    "participating system" as defined in Article 20 of this
5    Code shall be considered for purposes of determining a
6    judge's eligibility to discontinue contributions under
7    this subdivision (a)(2).
8        (3) A participant who (i) has attained age 60, (ii)
9    continues to serve as a judge after becoming eligible to
10    receive the maximum rate of annuity, and (iii) has not
11    elected to discontinue contributing to the System under
12    subdivision (a)(2) of this Section (or has revoked any such
13    election) may elect, through a written direction filed with
14    the Board, to make contributions to the System based only
15    on the amount of the increases in salary received by the
16    judge on or after the date of the election, rather than the
17    total salary received. If a judge who is making
18    contributions to the System on the effective date of this
19    amendatory Act of the 91st General Assembly makes an
20    election to limit contributions under this subdivision
21    (a)(3) within 90 days after that effective date, the
22    election shall be deemed to become effective on that
23    effective date and the judge shall be entitled to receive a
24    refund of any excess contributions paid to the System
25    during that 90-day period; any other election under this
26    subdivision (a)(3) becomes effective on the first of the

 

 

HB4669- 28 -LRB099 16679 RPS 41017 b

1    month following the date of the election. An election to
2    limit contributions under this subdivision (a)(3) is
3    irrevocable. Service credits earned in any other
4    participating system as defined in Article 20 of this Code
5    shall be considered for purposes of determining a judge's
6    eligibility to make an election under this subdivision
7    (a)(3).
8    (b) Beginning July 1, 1969, each participant is required to
9contribute 1% of each payment of salary towards the automatic
10increase in annuity provided in Section 18-125.1. However, such
11contributions need not be made by any participant who has
12elected prior to September 15, 1969, not to be subject to the
13automatic increase in annuity provisions.
14    (c) Effective July 13, 1953, each married participant
15subject to the survivor's annuity provisions is required to
16contribute 2 1/2% of each payment of salary, whether or not he
17or she is required to make any other contributions under this
18Section. Such contributions shall be made concurrently with the
19contributions made for annuity purposes.
20    (d) Notwithstanding any other provision of this Article,
21the required contributions for a participant who first becomes
22a participant on or after January 1, 2011 shall not be based on
23any salary in excess of the applicable annually-adjusted
24limitation on salary used for determining exceed the
25contributions that would be due under this Article if that
26participant's final average salary highest salary for annuity

 

 

HB4669- 29 -LRB099 16679 RPS 41017 b

1purposes were $106,800, plus any increase in that amount under
2Section 18-125.
3(Source: P.A. 96-1490, eff. 1-1-11.)