093_SB0580

 
                                     LRB093 07377 EFG 07539 b

 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 5-132 and 5-148 as follows:

 6        (40 ILCS 5/5-132) (from Ch. 108 1/2, par. 5-132)
 7        Sec. 5-132. Minimum annuity.
 8        (A)  Any  policeman  who  withdraws  on  or after July 8,
 9    1957, or any policeman transferred to the police  service  of
10    the  city  under  the  Exchange  of Functions Act of 1957 who
11    withdraws on or after July  17,  1959,  after  completing  at
12    least  20  years  of  service, for whom the annuity otherwise
13    provided in this Article is less than  that  stated  in  this
14    Section, has a right to receive annuity as follows:
15             (a)  If  he  is  age  55  or more on withdrawal, his
16        annuity after such withdrawal, shall be equal  to  2%  of
17        the  average  salary  for  4 consecutive years of highest
18        salaries within the  last  10  years  of  service  before
19        withdrawal,  for  each year of service, together with 1/6
20        of 1% of such average salary for each complete  month  of
21        service of each fractional year, but not in excess of 75%
22        of the average annual salary.
23             (b)  If he is age 50 or more but less than age 55 on
24        withdrawal,  his  annuity  shall  be  equal  to 2% of the
25        average salary for the 4 highest consecutive years of the
26        last 10 years  of  service  for  each  year  of  service,
27        together  with 1/16 of 1% of such average salary for each
28        month of each fractional year of service, reduced by  1/2
29        of 1% for each month that he is less than age 55.
30             (c)  If  he  is  less  than age 50 on withdrawal, he
31        may, upon attainment of age 50 or over,  become  entitled
 
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 1        to  the annuity provided in this Section or, he may, upon
 2        application before  age  50,  receive  a  refund  of  the
 3        deductions from salary, plus interest at 1 1/2% per annum
 4        if he is entitled to refund under Section 5-163.
 5             (d)  In   lieu   of  the  annuity  provided  in  the
 6        foregoing provisions of this Section 5-132 any  policeman
 7        who  withdraws  from the service after December 31, 1973,
 8        after having attained age 53 in the service  with  23  or
 9        more  years  of  service  credit  shall be entitled to an
10        annuity computed as follows if such  annuity  is  greater
11        than  that  provided  in the foregoing paragraphs of this
12        Section 5-132: An annuity equal to  50%  of  the  average
13        salary for the 4 highest consecutive years of the last 10
14        years  of  service plus additional annuity equal to 2% of
15        such average salary for each completed year of service or
16        fraction thereof rendered after his attainment of age  53
17        and the completion of 23 years of service.
18             Any  policeman who has completed 23 years of service
19        prior to his attainment of age  53  in  the  service  and
20        continues  in  the service until his attainment of age 53
21        shall have added to his annuity, computed as provided  in
22        the   immediately   preceding  paragraph,  an  additional
23        annuity equal to 1%  of  such  average  salary  for  each
24        completed  year  of service or fraction thereof in excess
25        of 23 years up to age 53.
26             (e)  In  lieu  of  the  annuity  provided   in   the
27        foregoing  provisions  of this Section, any policeman who
28        withdraws from the service either (i) after December  31,
29        1983  with at least 22 years of service credit and having
30        attained age 52 in the service, or  (ii)  after  December
31        31,  1984  with  at  least 21 years of service credit and
32        having attained age 51 in the  service,  or  (iii)  after
33        December  31,  1985  with  at  least  20 years of service
34        credit and having attained age 50 in the service, or (iv)
 
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 1        after December 31,  1990,  with  at  least  20  years  of
 2        service credit regardless of age, shall be entitled to an
 3        annuity  to begin not earlier than upon attainment of age
 4        50 if under such age at withdrawal, computed as  follows:
 5        an  annuity  equal to 50% of the average salary for the 4
 6        highest  consecutive  years  of  the  last  10  years  of
 7        service, plus additional annuity  equal  to  2%  of  such
 8        average  salary  for  each  completed  year of service or
 9        fraction thereof rendered after  his  completion  of  the
10        minimum number of years of service required for him to be
11        eligible  under this subsection (e). However, the annuity
12        provided under this subsection (e) may not exceed 75%  of
13        such average salary.
14             (f)  In   lieu   of  the  annuity  provided  in  the
15        foregoing provisions of this  Section,  a  policeman  who
16        withdraws  from  service  after December 31, 2003 with at
17        least 20 years of service credit may elect to receive  an
18        annuity, to begin not earlier than upon attainment of age
19        50  if  under  that  age  at  withdrawal, equal to 50% of
20        average salary plus  2.5%  of  average  salary  for  each
21        completed  year  of service or fraction thereof in excess
22        of 20, but not to exceed a  maximum  of  80%  of  average
23        salary.
24        (B)  A  policeman  withdrawing  after  September 1, 1969,
25    may, in addition, be entitled to  the  benefits  provided  by
26    Section 5-167.1 of this Article if he so qualifies under that
27    Section.
28        (C)  If,  on  withdrawal,  total  service is less than 20
29    years, the policeman shall not  be  entitled  to  an  annuity
30    under this Section but may receive an annuity under the other
31    provisions  of  this  Article  or,  if entitled thereto under
32    Section 5-163,  a  refund  of  the  deductions  from  salary,
33    including, in the case of policemen transferred to the police
34    service  of  the  city under the Exchange of Functions Act of
 
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 1    1957, the additional contribution  paid  on  salary  received
 2    from  August  1,  1957,  to July 17, 1959, as provided in the
 3    Park Policemen's Annuity Act, together  with  interest  at  1
 4    1/2% per annum.
 5        Moneys  voluntarily  contributed  under  the  Policemen's
 6    Annuity  and Benefit Fund Act of the Illinois Municipal Code,
 7    or the Park Policemen's Annuity Act, shall be refunded to the
 8    contributing policemen who were  in  service  on  January  1,
 9    1954,  or  in the case of policemen transferred to the police
10    service of the city under the Exchange of  Functions  Act  of
11    1957, who were in service on July 17, 1959.
12        The age and service annuity formula in this Section shall
13    not apply to any policeman who, having retired before July 8,
14    1957,  or  before  July  17, 1959, in the case of a policeman
15    transferred under the provisions of the Exchange of Functions
16    Act of 1957, re-enters the police service after  such  dates,
17    whichever are applicable.
18        (D)  For  the  purpose of this Section and Section 5-148,
19    "average  salary"  means  the  average  of  the   highest   4
20    consecutive  years  of  salary  within  the  last 10 years of
21    service.
22    (Source: P.A. 86-1488.)

23        (40 ILCS 5/5-148) (from Ch. 108 1/2, par. 5-148)
24        Sec. 5-148.  Maximum annuities.  No annuity in excess  of
25    75%  of the highest salary considered for annuity purposes in
26    accordance with this Article (80% of average  salary  in  the
27    case  of  a  policeman  whose  annuity  is  calculated  under
28    subdivision  (A)(f)  of  Section 5-132) shall be payable to a
29    policeman, or to the widow of a policeman whose death results
30    from injury incurred in the performance of an  act  of  duty.
31    No  amount  of  annuity  in excess of $500 per month shall be
32    payable to the widow of a policeman whose death results  from
33    any cause other than injury incurred in the performance of an
 
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 1    act of duty, except as provided in Section 5-136.1.
 2        If,  when a policeman's annuity is fixed, there is to his
 3    credit, for  such  annuity,  an  amount  in  excess  of  that
 4    necessary  to provide an annuity of 75% of his highest salary
 5    (80% of average salary in  the  case  of  a  policeman  whose
 6    annuity  is  calculated  under  subdivision (A)(f) of Section
 7    5-132),  7/24  of  such  excess  shall  be  refunded  if  the
 8    policeman is a  future  entrant;  and  if  he  is  a  present
 9    employee,  there  shall  be  refunded,  a part of such excess
10    amount proportionately equal  to  that  part  of  the  entire
11    amount to his credit for such annuity purposes, which the sum
12    that has resulted from salary deductions bears to such entire
13    amount.
14        Until  January  1,  1986,  if,  when a widow's annuity is
15    fixed, there  is  to  the  policeman's  credit,  for  widow's
16    annuity,  an amount in excess of that necessary to provide an
17    annuity of $500 per  month,  1/3  of  such  excess  shall  be
18    refunded  to the policeman if he is a future entrant; and, if
19    he is a present employee, there shall be refunded a  part  of
20    such  excess amount proportionately equal to that part of the
21    entire amount to his credit for such annuity  purposes  which
22    the  sum  that has resulted from employee contributions bears
23    to such entire amount.  If the widow's annuity is fixed on or
24    after January 1, 1986,  no  refund  of  excess  contributions
25    shall be made under this paragraph.
26        Until  January  1, 1986, if at the time of the death of a
27    policeman resulting from injury incurred in  the  performance
28    of  an  act  of  duty,  there  is  to his credit, for widow's
29    annuity, an amount in excess of that necessary to provide  an
30    annuity  of  75%  of his highest salary, or $500 per month if
31    death results from any other cause, 1/3 of such excess  shall
32    be  refunded to his widow if he was a future entrant; and, if
33    he was a present employee, there shall  be  refunded  to  his
34    widow  a  part of such excess amount proportionately equal to
 
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 1    that part of the entire amount to his credit for such annuity
 2    purposes which the sum  that  has  resulted  from  employee's
 3    contributions  bears to such entire amount.  If employee dies
 4    in service on or after January 1, 1986, no refund  of  excess
 5    contributions shall be made under this paragraph.
 6        This  amendatory Act of 1972 does not increase the amount
 7    of any widow's annuity which is fixed  before  the  effective
 8    date of this amendatory Act of 1972.
 9    (Source: P.A. 84-1104.)

10        Section  90.  The State Mandates Act is amended by adding
11    Section 8.27 as follows:

12        (30 ILCS 805/8.27 new)
13        Sec. 8.27. Exempt mandate.   Notwithstanding  Sections  6
14    and  8 of this Act, no reimbursement by the State is required
15    for  the  implementation  of  any  mandate  created  by  this
16    amendatory Act of the 93rd General Assembly.

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