Rep. Kevin A. McCarthy

Filed: 5/25/2010

 

 


 

 


 
09600SB3537ham002 LRB096 18785 AMC 41725 a

1
AMENDMENT TO SENATE BILL 3537

2     AMENDMENT NO. ______. Amend Senate Bill 3537, AS AMENDED,
3 with reference to page and line numbers of House Amendment No.
4 1, on page 1, line 5, after "Sections", by inserting
5 "2-108.1,"; and
 
6 on page 1, line 5, after "18-124,", by inserting "18-125,"; and
 
7 on page 1, immediately below line 6, by inserting the
8 following:
 
9     "(40 ILCS 5/2-108.1)  (from Ch. 108 1/2, par. 2-108.1)
10     (Text of Section after amendment by P.A. 96-889)
11     Sec. 2-108.1. Highest salary for annuity purposes.
12     (a) "Highest salary for annuity purposes" means whichever
13 of the following is applicable to the participant:
14     For a participant who first becomes a participant of this
15 System before August 10, 2009 (the effective date of Public Act

 

 

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1 96-207):
2         (1) For a participant who is a member of the General
3     Assembly on his or her last day of service: the highest
4     salary that is prescribed by law, on the participant's last
5     day of service, for a member of the General Assembly who is
6     not an officer; plus, if the participant was elected or
7     appointed to serve as an officer of the General Assembly
8     for 2 or more years and has made contributions as required
9     under subsection (d) of Section 2-126, the highest
10     additional amount of compensation prescribed by law, at the
11     time of the participant's service as an officer, for
12     members of the General Assembly who serve in that office.
13         (2) For a participant who holds one of the State
14     executive offices specified in Section 2-105 on his or her
15     last day of service: the highest salary prescribed by law
16     for service in that office on the participant's last day of
17     service.
18         (3) For a participant who is Clerk or Assistant Clerk
19     of the House of Representatives or Secretary or Assistant
20     Secretary of the Senate on his or her last day of service:
21     the salary received for service in that capacity on the
22     last day of service, but not to exceed the highest salary
23     (including additional compensation for service as an
24     officer) that is prescribed by law on the participant's
25     last day of service for the highest paid officer of the
26     General Assembly.

 

 

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1         (4) For a participant who is a continuing participant
2     under Section 2-117.1 on his or her last day of service:
3     the salary received for service in that capacity on the
4     last day of service, but not to exceed the highest salary
5     (including additional compensation for service as an
6     officer) that is prescribed by law on the participant's
7     last day of service for the highest paid officer of the
8     General Assembly.
9     For a participant who first becomes a participant of this
10 System on or after August 10, 2009 (the effective date of
11 Public Act 96-207) and before January 1, 2011 (the effective
12 date of Public Act 96-889) this amendatory Act of the 96th
13 General Assembly, the average monthly salary obtained by
14 dividing the total salary of the participant during the period
15 of: (1) the 48 consecutive months of service within the last
16 120 months of service in which the total compensation was the
17 highest, or (2) the total period of service, if less than 48
18 months, by the number of months of service in that period.
19     For a participant who first becomes a participant of this
20 System on or after January 1, 2011 (the effective date of
21 Public Act 96-889) this amendatory Act of the 96th General
22 Assembly, the average monthly salary obtained by dividing the
23 total salary of the participant during the 96 consecutive
24 months of service within the last 120 months of service in
25 which the total compensation was the highest by the number of
26 months of service in that period; however, the highest salary

 

 

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1 for annuity purposes may not exceed the Social Security Covered
2 Wage Base for 2010, as automatically increased by the lesser of
3 3% or one-half of the annual increase in the consumer price
4 index-u during the preceding 12-month calendar year and shall
5 automatically be increased or decreased, as applicable, by a
6 percentage equal to the percentage change in the consumer price
7 index-u during the preceding 12-month calendar year. "Consumer
8 price index-u" means the index published by the Bureau of Labor
9 Statistics of the United States Department of Labor that
10 measures the average change in prices of goods and services
11 purchased by all urban consumers, United States city average,
12 all items, 1982-84 = 100. The new amount resulting from each
13 annual adjustment shall be determined by the Public Pension
14 Division of the Department of Insurance and made available to
15 the Board.
16     (b) The earnings limitations of subsection (a) apply to
17 earnings under any other participating system under the
18 Retirement Systems Reciprocal Act that are considered in
19 calculating a proportional annuity under this Article, except
20 in the case of a person who first became a member of this
21 System before August 22, 1994.
22     (c) In calculating the subsection (a) earnings limitation
23 to be applied to earnings under any other participating system
24 under the Retirement Systems Reciprocal Act for the purpose of
25 calculating a proportional annuity under this Article, the
26 participant's last day of service shall be deemed to mean the

 

 

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1 last day of service in any participating system from which the
2 person has applied for a proportional annuity under the
3 Retirement Systems Reciprocal Act.
4 (Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11.)"; and
 
5 on page 6, line 14, by replacing "then being paid" with "then
6 being paid"; and
 
7 on page 6, line 16, after "less", by inserting ", of the
8 originally granted retirement annuity"; and
 
9 on page 10, lines 14 and 15, by replacing "survivor's annuity
10 then being paid" with "originally granted survivor's annuity
11 then being paid"; and
 
12 on page 12, immediately below line 18, by inserting the
13 following:
 
14     "(40 ILCS 5/18-125)  (from Ch. 108 1/2, par. 18-125)
15     (Text of Section after amendment by P.A. 96-889)
16     Sec. 18-125. Retirement annuity amount.
17     (a) The annual retirement annuity for a participant who
18 terminated service as a judge prior to July 1, 1971 shall be
19 based on the law in effect at the time of termination of
20 service.
21     (b) Except as provided in subsection (b-5), effective July

 

 

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

 

 

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1     least 4 consecutive years, whichever is greater.
2     However, in the case of a participant who elects to
3 discontinue contributions as provided in subdivision (a)(2) of
4 Section 18-133, the time of such election shall be considered
5 the last day of employment in the determination of final
6 average salary under this subsection.
7     For a participant who first serves as a judge on or after
8 August 10, 2009 (the effective date of Public Act 96-207) and
9 before January 1, 2011 (the effective date of Public Act
10 96-889) this amendatory Act of the 96th General Assembly, final
11 average salary shall be the average monthly salary obtained by
12 dividing the total salary of the participant during the period
13 of: (1) the 48 consecutive months of service within the last
14 120 months of service in which the total compensation was the
15 highest, or (2) the total period of service, if less than 48
16 months, by the number of months of service in that period.
17     The maximum retirement annuity for any participant shall be
18 85% of final average salary.
19     (b-5) Notwithstanding any other provision of this Article,
20 for a participant who first serves as a judge on or after
21 January 1, 2011 (the effective date of Public Act 96-889) this
22 amendatory Act of the 96th General Assembly, the annual
23 retirement annuity is 3% of the participant's final average
24 salary for each year of service. The maximum retirement annuity
25 payable shall be 60% of the participant's final average salary.
26     For a participant who first serves as a judge on or after

 

 

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1 January 1, 2011 (the effective date of Public Act 96-889) this
2 amendatory Act of the 96th General Assembly, final average
3 salary shall be the average monthly salary obtained by dividing
4 the total salary of the judge during the 96 consecutive months
5 of service within the last 120 months of service in which the
6 total salary was the highest by the number of months of service
7 in that period; however, the final average salary may not
8 exceed the Social Security Covered Wage Base for 2010, as
9 automatically increased by the lesser of 3% or one-half of the
10 annual increase in the consumer price index-u during the
11 preceding 12-month calendar year and shall automatically be
12 increased or decreased, as applicable, by a percentage equal to
13 the percentage change in the consumer price index-u during the
14 preceding 12-month calendar year. "Consumer price index-u"
15 means the index published by the Bureau of Labor Statistics of
16 the United States Department of Labor that measures the average
17 change in prices of goods and services purchased by all urban
18 consumers, United States city average, all items, 1982-84 =
19 100. The new amount resulting from each annual adjustment shall
20 be determined by the Public Pension Division of the Department
21 of Insurance and made available to the Board.
22     (c) The retirement annuity for a participant who retires
23 prior to age 60 with less than 28 years of service in the
24 System shall be reduced 1/2 of 1% for each month that the
25 participant's age is under 60 years at the time the annuity
26 commences. However, for a participant who retires on or after

 

 

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1 the effective date of this amendatory Act of the 91st General
2 Assembly, the percentage reduction in retirement annuity
3 imposed under this subsection shall be reduced by 5/12 of 1%
4 for every month of service in this System in excess of 20
5 years, and therefore a participant with at least 26 years of
6 service in this System may retire at age 55 without any
7 reduction in annuity.
8     The reduction in retirement annuity imposed by this
9 subsection shall not apply in the case of retirement on account
10 of disability.
11     (d) Notwithstanding any other provision of this Article,
12 for a participant who first serves as a judge on or after the
13 effective date of this amendatory Act of the 96th General
14 Assembly and who is retiring after attaining age 62, the
15 retirement annuity shall be reduced by 1/2 of 1% for each month
16 that the participant's age is under age 67 at the time the
17 annuity commences.
18 (Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11.)"; and
 
19 on page 13, lines 13 and 14, by replacing "retirement annuity
20 then being paid" with "originally granted retirement annuity
21 then being paid"; and
 
22 on page 16, line 26, by replacing "survivor's annuity" with
23 "originally granted survivor's annuity"; and
 

 

 

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1 on page 17, line 1, by replacing "then being paid" with "then
2 being paid".