97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB3630

 

Introduced 2/10/2012, by Sen. Kwame Raoul

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/9-134  from Ch. 108 1/2, par. 9-134
40 ILCS 5/9-160  from Ch. 108 1/2, par. 9-160

    Amends the Cook County Article of the Illinois Pension Code. Provides that a county employee with 20 or more years of service, who first became a participant on or after January 1, 2011 and whose entire disability benefit credit period expires before attainment of age 62, may qualify for certain annuities. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3630LRB097 19617 EFG 64871 b

1    AN ACT concerning public employee benefits.
 
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 9-134 and 9-160 as follows:
 
6    (40 ILCS 5/9-134)  (from Ch. 108 1/2, par. 9-134)
7    Sec. 9-134. Minimum annuity - Additional provisions.
8    (a) An employee who withdraws after July 1, 1957 at age 60
9or more with 20 or more years of service, for whom the amount
10of age and service and prior service annuity combined is less
11than the amount stated in this Section from the date of
12withdrawal, instead of all annuities otherwise provided in this
13Article, is entitled to receive an annuity for life of an
14amount equal to 1 2/3% for each year of service, of his highest
15average annual salary for any 5 consecutive years within the
16last 10 years of service immediately preceding the date of
17withdrawal; provided that in the case of any employee who
18withdraws on or after July 1, 1971, such employee age 60 or
19over with 20 or more years of service, or who withdraws on or
20after January 1, 1982 and on or after attainment of age 65 with
2110 or more years of service, shall instead receive an annuity
22for life equal to 1.67% for each of the first 10 years of
23service; 1.90% for each of the next 10 years of service; 2.10%

 

 

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1for each year of service in excess of 20 but not exceeding 30;
2and 2.30% for each year of service in excess of 30, based on
3the highest average annual salary for any 4 consecutive years
4within the last 10 years of service immediately preceding the
5date of withdrawal.
6    An employee who withdraws after July 1, 1957, but prior to
7January 1, 1988, with 20 or more years of service, before age
860 is entitled to annuity, to begin not earlier than age 55, if
9under such age at withdrawal, as computed in the last preceding
10paragraph, reduced 1/2 of 1% for each full month or fractional
11part thereof that his attained age when annuity is to begin is
12less than 60 to the end that the total reduction at age 55
13shall be 30%, except that an employee retiring at age 55 or
14over but less than age 60, having at least 35 years of service,
15shall not be subject to the reduction in his retirement annuity
16because of retirement below age 60.
17    An employee who withdraws on or after January 1, 1988, with
1820 or more years of service and before age 60, is entitled to
19annuity as computed above, to begin not earlier than age 50 if
20under such age at withdrawal, reduced 1/2 of 1% for each full
21month or fractional part thereof that his attained age when
22annuity is to begin is less than 60, to the end that the total
23reduction at age 50 shall be 60%, except that an employee
24retiring at age 50 or over but less than age 60, having at
25least 30 years of service, shall not be subject to the
26reduction in retirement annuity because of retirement below age

 

 

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160.
2    An employee who withdraws on or after January 1, 1992 but
3before January 1, 1993, at age 60 or over with 5 or more years
4of service, may elect, in lieu of any other employee annuity
5provided in this Section, to receive an annuity for life equal
6to 2.20% for each of the first 20 years of service, and 2.40%
7for each year of service in excess of 20, based on the highest
8average annual salary for any 4 consecutive years within the
9last 10 years of service immediately preceding the date of
10withdrawal. An employee who withdraws on or after January 1,
111992, but before January 1, 1993, on or after attainment of age
1255 but before attainment of age 60 with 5 or more years of
13service, is entitled to elect such annuity, but the annuity
14shall be reduced 0.25% for each full month or fractional part
15thereof that his attained age when the annuity is to begin is
16less than age 60, to the end that the total reduction at age 55
17shall be 15%, except that an employee retiring at age 55 or
18over but less than age 60, having at least 30 years of service,
19shall not be subject to the reduction in retirement annuity
20because of retirement below age 60. This annuity benefit
21formula shall only apply to those employees who are age 55 or
22over prior to January 1, 1993, and who elect to withdraw at age
2355 or over on or after January 1, 1992 but before January 1,
241993.
25    An employee who withdraws on or after July 1, 1996 but
26before August 1, 1996, at age 55 or over with 8 or more years of

 

 

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1service, may elect, in lieu of any other employee annuity
2provided in this Section, to receive an annuity for life equal
3to 2.20% for each of the first 20 years of service, and 2.40%
4for each year of service in excess of 20, based on the highest
5average annual salary for any 4 consecutive years within the
6last 10 years of service immediately preceding the date of
7withdrawal, but the annuity shall be reduced by 0.25% for each
8full month or fractional part thereof that the annuitant's
9attained age when the annuity is to begin is less than age 60,
10unless the annuitant has at least 30 years of service.
11    The maximum annuity under this paragraph (a) shall not
12exceed 70% of highest average annual salary for any 5
13consecutive years within the last 10 years of service in the
14case of an employee who withdraws prior to July 1, 1971, and
1575% of the highest average annual salary for any 4 consecutive
16years within the last 10 years of service immediately preceding
17the date of withdrawal if withdrawal takes place on or after
18July 1, 1971 and prior to January 1, 1988, and 80% of the
19highest average annual salary for any 4 consecutive years
20within the last 10 years of service immediately preceding the
21date of withdrawal if withdrawal takes place on or after
22January 1, 1988. Fifteen hundred dollars shall be considered
23the minimum amount of annual salary for any year, and the
24maximum shall be his salary as defined in this Article, except
25that for the years before 1957 and subsequent to 1952 the
26maximum annual salary to be considered shall be $6,000, and for

 

 

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1any year before the year 1953, $4,800.
2    (b) Any employee who withdraws on or after July 1, 1985 but
3prior to January 1, 1988, at age 60 or over with 10 or more
4years of service, may elect in lieu of the benefit in paragraph
5(a) to receive an annuity for life equal to 2.00% for each year
6of service, based on the highest average annual salary for any
74 consecutive years within the last 10 years of service
8immediately preceding the date of withdrawal. An employee who
9withdraws on or after July 1, 1985, but prior to January 1,
101988, with 10 or more years of service, but before age 60, is
11entitled to elect such annuity, to begin not earlier than age
1255, but the annuity shall be reduced 0.5% for each full month
13or fractional part thereof that his attained age when the
14annuity is to begin is less than 60, to the end that the total
15reduction at age 55 shall be 30%; except that an employee
16retiring at age 55 or over but less than age 60, having at
17least 30 years of service, shall not be subject to the
18reduction in retirement annuity because of retirement below age
1960.
20    An employee who withdraws on or after January 1, 1988, at
21age 60 or over with 10 or more years of service, may elect, in
22lieu of the benefit in paragraph (a), to receive an annuity for
23life equal to 2.20% for each of the first 20 years of service,
24and 2.4% for each year of service in excess of 20, based on the
25highest average annual salary for any 4 consecutive years
26within the last 10 years of service immediately preceding the

 

 

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1date of withdrawal. An employee who withdraws on or after
2January 1, 1988, with 10 or more years of service, but before
3age 60, is entitled to elect such annuity, to begin not earlier
4than age 50, but the annuity shall be reduced 0.5% for each
5full month or fractional part thereof that his attained age
6when the annuity is to begin is less than 60, to the end that
7the total reduction at age 50 shall be 60%, except that an
8employee retiring at age 50 or over but less than age 60,
9having at least 30 years of service, shall not be subject to
10the reduction in retirement annuity because of retirement below
11age 60.
12    An employee who withdraws on or after June 30, 2002 with 10
13or more years of service may elect, in lieu of any other
14retirement annuity provided under this Article, to receive an
15annuity for life, beginning no earlier than upon attainment of
16age 50, equal to 2.40% of his or her highest average annual
17salary for any 4 consecutive years within the last 10 years of
18service immediately preceding withdrawal, for each year of
19service. If the employee has less than 30 years of service, the
20annuity shall be reduced by 0.5% for each full month or
21remaining fraction thereof that the employee's attained age
22when the annuity is to begin is less than 60.
23    The maximum annuity under this paragraph (b) shall not
24exceed 75% of the highest average annual salary for any 4
25consecutive years within the last 10 years of service
26immediately preceding the date of withdrawal if withdrawal

 

 

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1occurs prior to January 1, 1988, or 80% of the highest average
2annual salary for any 4 consecutive years within the last 10
3years of service immediately preceding the date of withdrawal
4if withdrawal takes place on or after January 1, 1988.
5    The provisions of this paragraph (b) do not apply to any
6former County employee receiving an annuity from the fund, who
7re-enters service as a County employee, unless he renders at
8least 3 years of additional service after the date of re-entry.
9    (c) For an employee receiving disability benefit, the
10salary for annuity purposes under paragraph (a) or (b) of this
11Section shall, for all periods of disability benefit subsequent
12to the year 1956, be the amount on which his disability benefit
13was based.
14    (d) A county employee with 20 or more years of service,
15whose entire disability benefit credit period expires before
16attainment of age 50 (age 55 if expiration occurs before
17January 1, 1988, or age 62 if the member first became a
18participant on or after January 1, 2011), while still disabled
19for service is entitled upon withdrawal to the larger of:
20        (1) The minimum annuity provided above, assuming that
21    he is then age 50 (age 55 if expiration occurs before
22    January 1, 1988, or age 62 if the member first became a
23    participant on or after January 1, 2011), and reducing such
24    annuity to its actuarial equivalent at his attained age on
25    such date, or
26        (2) the annuity provided from his age and service and

 

 

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1    prior service annuity credits.
2    (e) The minimum annuity provisions above do not apply to
3any former county employee receiving an annuity from the fund,
4who re-enters service as a county employee, unless he renders
5at least 3 years of additional service after the date of
6re-entry.
7    (f) Any employee in service on July 1, 1947, or who enters
8service thereafter before attaining age 65 and withdraws after
9age 65 with less than 10 years of service for whom the annuity
10has been fixed under the foregoing Sections of this Article,
11shall, instead of the annuity so fixed, receive an annuity as
12follows:
13    Such amount as he could have received had the accumulated
14amounts for annuity been improved with interest at the
15effective rate to the date of withdrawal, or to attainment of
16age 70, whichever is earlier, and had the county contributed to
17such earlier date for age and service annuity the amount that
18it would have contributed had he been under age 65, after the
19date his annuity was fixed in accordance with this Article, and
20assuming his annuity were computed from such accumulations as
21of his age on such earlier date. However those employees who
22before July 1, 1953, made additional contributions in
23accordance with this Article, the annuity so computed under
24this paragraph shall not exceed the annuity which would be
25payable under the other provisions of this Section if the
26employee concerned was credited with 20 years of service and

 

 

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1would qualify for annuity thereunder.
2    (g) Instead of the annuity provided in this or any other
3Section of this Article, an employee having attained age 65
4with at least 15 years of service may elect to receive a
5minimum annual annuity for life equal to 1% of the highest
6average annual salary for any 4 consecutive years within the
7last 10 years of service immediately preceding retirement for
8each year of service, plus the sum of $25 for each year of
9service provided that no such minimum annual annuity may be
10greater than 60% of such highest average annual salary.
11    (h) The annuity is payable in equal monthly installments.
12    (i) If, by operation of law, a function of a governmental
13unit, as defined by Section 20-107 of this Code, is transferred
14in whole or in part to the county in which this Article 9 is
15created as set forth in Section 9-101, and employees of the
16governmental unit are transferred as a class to such county,
17the earnings credits in the retirement system covering the
18governmental unit which have been validated under Section
1920-109 of this Code shall be considered in determining the
20highest average annual salary for purposes of this Section
219-134.
22    (j) The annuity being paid to an employee annuitant on July
231, 1988, shall be increased on that date by 1% for each full
24year that has elapsed from the date the annuity began.
25    (k) Notwithstanding anything to the contrary in this
26Article 9, Section 20-131 shall not apply to an employee who

 

 

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1withdraws on or after January 1, 1988, but prior to attaining
2age 55. Therefore, no employee shall be entitled to elect to
3have the alternative formula previously set forth in Section
420-122 prior to the amendatory Act of 1975 apply to any
5annuity, the payment of which commenced after January 1, 1988,
6but prior to such employee's attainment of age 55.
7(Source: P.A. 92-599, eff. 6-28-02.)
 
8    (40 ILCS 5/9-160)  (from Ch. 108 1/2, par. 9-160)
9    Sec. 9-160. Annuity after withdrawal while disabled. An
10employee whose disability continues after he has received
11ordinary disability benefit for the maximum period of time
12prescribed by this Article, and who withdraws before age 60
13while still so disabled, is entitled to receive the annuity
14provided from the total sum accumulated to his credit from
15employee contributions and county contributions to be computed
16as of his age on the date of withdrawal.
17    The annuity to which his wife shall be entitled upon his
18death, shall be fixed on the date of his withdrawal. It shall
19be provided on a reversionary annuity basis from the total sum
20accumulated to his credit for widow's annuity on the date of
21such withdrawal.
22    Upon the death of any such employee while on annuity, if
23his service was at least 4 years after the date of his original
24entry, and at least 2 years after the date of his latest
25re-entry, his unmarried child or children under age 18 shall be

 

 

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1entitled to annuity specified in this Article for children of
2an employee who retires after age 50 (age 55 for withdrawal
3before January 1, 1988), subject to prescribed limitations on
4total payments to a family of an employee.
5(Source: P.A. 85-964.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.