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1 | AN ACT concerning public employee benefits.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Pension Code is amended by changing | ||||||
5 | Sections 9-134 and 9-160 as follows:
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6 | (40 ILCS 5/9-134) (from Ch. 108 1/2, par. 9-134)
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7 | Sec. 9-134. Minimum annuity - Additional provisions.
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8 | (a) An employee who withdraws after July 1, 1957 at age 60 | ||||||
9 | or more with
20 or more years of service, for whom the amount | ||||||
10 | of age and service and
prior service annuity combined is less | ||||||
11 | than the amount stated in this
Section from the date of | ||||||
12 | withdrawal, instead of all annuities otherwise
provided in this | ||||||
13 | Article, is entitled to receive an annuity for life of an
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14 | amount equal to 1 2/3% for each year of service, of his highest | ||||||
15 | average
annual salary for any 5 consecutive years within the | ||||||
16 | last 10 years of
service immediately preceding the date of | ||||||
17 | withdrawal; provided that in the
case of any employee who | ||||||
18 | withdraws on or after July 1, 1971, such employee
age 60 or | ||||||
19 | over with 20 or more years of service, or who withdraws on or
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20 | after January 1, 1982 and on or after attainment of age 65 with | ||||||
21 | 10 or more
years of service, shall instead receive an annuity | ||||||
22 | for life equal to 1.67%
for each of the first 10 years of | ||||||
23 | service; 1.90% for each of the next 10
years of service; 2.10% |
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1 | for each year of service in excess of 20 but not
exceeding 30; | ||||||
2 | and 2.30% for each year of service in excess of 30, based on
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3 | the highest average annual salary for any 4 consecutive years | ||||||
4 | within the
last 10 years of service immediately preceding the | ||||||
5 | date of withdrawal.
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6 | An employee who withdraws after July 1, 1957, but prior to | ||||||
7 | January 1,
1988, with 20 or more years of service, before age | ||||||
8 | 60 is entitled to
annuity, to begin not earlier than age 55, if | ||||||
9 | under such age at withdrawal,
as computed in the last preceding | ||||||
10 | paragraph, reduced 1/2 of 1% for each
full month or fractional | ||||||
11 | part thereof that his attained age when annuity is
to begin is | ||||||
12 | less than 60 to the end that the total reduction at age 55
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13 | shall be 30%, except that an employee retiring at age 55 or | ||||||
14 | over but less
than age 60, having at least 35 years of service, | ||||||
15 | shall not be subject to
the reduction in his retirement annuity | ||||||
16 | because of retirement below age 60.
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17 | An employee who withdraws on or after January 1, 1988, with | ||||||
18 | 20 or more
years of service and before age 60, is entitled to | ||||||
19 | annuity as computed
above, to begin not earlier than age 50 if | ||||||
20 | under such age at withdrawal,
reduced 1/2 of 1% for each full | ||||||
21 | month or fractional part thereof that his
attained age when | ||||||
22 | annuity is to begin is less than 60, to the end that the
total | ||||||
23 | reduction at age 50 shall be 60%, except that an employee | ||||||
24 | retiring at
age 50 or over but less than age 60, having at | ||||||
25 | least 30 years of service,
shall not be subject to the | ||||||
26 | reduction in retirement annuity because of
retirement below age |
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1 | 60.
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2 | An employee who withdraws on or after January 1, 1992 but | ||||||
3 | before
January 1, 1993, at age 60 or over with 5 or more years | ||||||
4 | of service, may
elect, in lieu of any other employee annuity | ||||||
5 | provided in this Section, to
receive an annuity for life equal | ||||||
6 | to 2.20% for each of the first 20 years
of service, and 2.40% | ||||||
7 | for each year of service in excess of 20, based on the
highest | ||||||
8 | average annual salary for any 4 consecutive years within the | ||||||
9 | last
10 years of service immediately preceding the date of | ||||||
10 | withdrawal. An
employee who withdraws on or after January 1, | ||||||
11 | 1992, but before January 1,
1993, on or after attainment of age | ||||||
12 | 55 but before attainment of age 60 with
5 or more years of | ||||||
13 | service, is entitled to elect such annuity, but the
annuity | ||||||
14 | shall be reduced 0.25% for each full month or fractional part
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15 | thereof that his attained age when the annuity is to begin is | ||||||
16 | less than age
60, to the end that the total reduction at age 55 | ||||||
17 | shall be 15%, except that
an employee retiring at age 55 or | ||||||
18 | over but less than age 60, having at
least 30 years of service, | ||||||
19 | shall not be subject to the reduction in
retirement annuity | ||||||
20 | because of retirement below age 60. This annuity benefit
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21 | formula shall only apply to those employees who are age 55 or | ||||||
22 | over prior to
January 1, 1993, and who elect to withdraw at age | ||||||
23 | 55 or over on or after
January 1, 1992 but before January 1, | ||||||
24 | 1993.
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25 | An employee who withdraws on or after July 1, 1996 but | ||||||
26 | before
August 1, 1996, at age 55 or over with 8 or more years of |
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1 | service, may
elect, in lieu of any other employee annuity | ||||||
2 | provided in this Section, to
receive an annuity for life equal | ||||||
3 | to 2.20% for each of the first 20 years
of service, and 2.40% | ||||||
4 | for each year of service in excess of 20, based on the
highest | ||||||
5 | average annual salary for any 4 consecutive years within the | ||||||
6 | last
10 years of service immediately preceding the date of | ||||||
7 | withdrawal, but the
annuity shall be reduced by 0.25% for each | ||||||
8 | full month or fractional part
thereof that the annuitant's | ||||||
9 | attained age when the annuity is to begin is
less than age 60, | ||||||
10 | unless the annuitant has at least 30 years of service.
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11 | The maximum annuity under this paragraph (a) shall not | ||||||
12 | exceed 70% of
highest average annual salary for any 5 | ||||||
13 | consecutive years within the last
10 years of service in the | ||||||
14 | case of an employee who withdraws prior to July
1, 1971, and | ||||||
15 | 75% of the highest average annual salary for any 4 consecutive
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16 | years within the last 10 years of service immediately preceding | ||||||
17 | the date of
withdrawal if withdrawal takes place on or after | ||||||
18 | July 1, 1971 and prior
to January 1, 1988, and 80% of the | ||||||
19 | highest average annual salary for any 4
consecutive years | ||||||
20 | within the last 10 years of service immediately preceding
the | ||||||
21 | date of withdrawal if withdrawal takes place on or after | ||||||
22 | January 1,
1988. Fifteen hundred dollars shall be considered | ||||||
23 | the minimum amount of
annual salary for any year, and the | ||||||
24 | maximum shall be his salary as defined
in this Article, except | ||||||
25 | that for the years before 1957 and subsequent to
1952 the | ||||||
26 | maximum annual salary to be considered shall be $6,000, and for
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1 | any year before the year 1953, $4,800.
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2 | (b) Any employee who withdraws on or after July 1, 1985 but | ||||||
3 | prior to
January 1, 1988, at age 60 or over with 10 or more | ||||||
4 | years 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 | ||||||
6 | of service, based on the highest average
annual salary for any | ||||||
7 | 4 consecutive years within the last 10 years of
service | ||||||
8 | immediately preceding the date of withdrawal. An employee who
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9 | withdraws on or after July 1, 1985, but prior to January 1, | ||||||
10 | 1988, with 10
or more years of service, but before age 60, is | ||||||
11 | entitled to elect such
annuity, to begin not earlier than age | ||||||
12 | 55, but the annuity shall be reduced
0.5% for each full month | ||||||
13 | or fractional part thereof that his attained age
when the | ||||||
14 | annuity is to begin is less than 60, to the end that the total
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15 | reduction at age 55 shall be 30%; except that an employee | ||||||
16 | retiring at age
55 or over but less than age 60, having at | ||||||
17 | least 30 years of service, shall
not be subject to the | ||||||
18 | reduction in retirement annuity because of retirement
below age | ||||||
19 | 60.
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20 | An employee who withdraws on or after January 1, 1988, at | ||||||
21 | age 60 or
over with 10 or more years of service, may elect, in | ||||||
22 | lieu of the benefit in
paragraph (a), to receive an annuity for | ||||||
23 | life equal to 2.20% for each of the
first 20 years of service, | ||||||
24 | and 2.4% for each year of service in excess of 20,
based on the | ||||||
25 | highest average annual salary for any 4 consecutive years | ||||||
26 | within
the last 10 years of service immediately preceding the |
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1 | date of withdrawal.
An employee who withdraws on or after | ||||||
2 | January 1, 1988, with 10 or more
years of service, but before | ||||||
3 | age 60, is entitled to elect such annuity, to
begin not earlier | ||||||
4 | than age 50, but the annuity shall be reduced 0.5% for
each | ||||||
5 | full month or fractional part thereof that his attained age | ||||||
6 | when the
annuity is to begin is less than 60, to the end that | ||||||
7 | the total reduction at
age 50 shall be 60%, except that an | ||||||
8 | employee retiring at age 50 or over
but less than age 60, | ||||||
9 | having at least 30 years of service, shall not be
subject to | ||||||
10 | the reduction in retirement annuity because of retirement below
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11 | age 60.
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12 | An employee who withdraws on or after June 30, 2002 with 10 | ||||||
13 | or more
years of service may elect, in lieu of any other | ||||||
14 | retirement annuity provided
under this Article, to receive an | ||||||
15 | annuity for life, beginning no earlier than
upon attainment of | ||||||
16 | age 50, equal to 2.40% of his or her highest average annual
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17 | salary for any 4 consecutive years within the last 10 years of | ||||||
18 | service
immediately preceding withdrawal, for each year of | ||||||
19 | service. If the employee
has less than 30 years of service, the | ||||||
20 | annuity shall be reduced by 0.5% for
each full month or | ||||||
21 | remaining fraction thereof that the employee's attained age
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22 | when the annuity is to begin is less than 60.
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23 | The maximum annuity under this paragraph (b) shall not | ||||||
24 | exceed 75% of the
highest average annual salary for any 4 | ||||||
25 | consecutive years within the last
10 years of service | ||||||
26 | immediately preceding the date of withdrawal if
withdrawal |
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1 | occurs prior to January 1, 1988, or 80% of the highest average
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2 | annual salary for any 4 consecutive years within the last 10 | ||||||
3 | years of
service immediately preceding the date of withdrawal | ||||||
4 | if withdrawal takes
place on or after January 1, 1988.
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5 | The provisions of this paragraph (b) do not apply to any | ||||||
6 | former County
employee receiving an annuity from the fund, who | ||||||
7 | re-enters service as a
County employee, unless he renders at | ||||||
8 | least 3 years of additional service
after the date of re-entry.
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9 | (c) For an employee receiving disability benefit, the | ||||||
10 | salary for annuity
purposes under paragraph (a) or (b) of this | ||||||
11 | Section shall, for all periods of
disability benefit subsequent | ||||||
12 | to the year 1956, be the amount on which his
disability benefit | ||||||
13 | was based.
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14 | (d) A county employee with 20 or more years of service, | ||||||
15 | whose entire
disability benefit credit period expires before | ||||||
16 | attainment of age 50
(age 55 if expiration occurs before | ||||||
17 | January 1, 1988 , or age 62 if the member first became a | ||||||
18 | participant on or after January 1, 2011 ), while
still disabled | ||||||
19 | for service is entitled upon withdrawal to the larger of:
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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
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24 | annuity to its actuarial equivalent at his attained age on | ||||||
25 | such date, or
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26 | (2) the annuity provided from his age and service and |
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1 | prior service
annuity credits.
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2 | (e) The minimum annuity provisions above do not apply to | ||||||
3 | any former
county employee receiving an annuity from the fund, | ||||||
4 | who re-enters service
as a county employee, unless he renders | ||||||
5 | at least 3 years of additional
service after the date of | ||||||
6 | re-entry.
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7 | (f) Any employee in service on July 1, 1947, or who enters | ||||||
8 | service
thereafter before attaining age 65 and withdraws after | ||||||
9 | age 65 with less
than 10 years of service for whom the annuity | ||||||
10 | has been fixed under the
foregoing Sections of this Article, | ||||||
11 | shall, instead of the annuity so fixed,
receive an annuity as | ||||||
12 | follows:
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13 | Such amount as he could have received had the accumulated | ||||||
14 | amounts for
annuity been improved with interest at the | ||||||
15 | effective rate to the date of
withdrawal, or to attainment of | ||||||
16 | age 70, whichever is earlier, and had the
county contributed to | ||||||
17 | such earlier date for age and service annuity the
amount that | ||||||
18 | it would have contributed had he been under age 65, after the
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19 | date his annuity was fixed in accordance with this Article, and | ||||||
20 | assuming
his annuity were computed from such accumulations as | ||||||
21 | of his age on such
earlier date. However those employees who | ||||||
22 | before July 1, 1953, made
additional contributions in | ||||||
23 | accordance with this Article, the annuity so
computed under | ||||||
24 | this paragraph shall not exceed the annuity which would be
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25 | payable under the other provisions of this Section if the | ||||||
26 | employee
concerned was credited with 20 years of service and |
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1 | would qualify for
annuity thereunder.
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2 | (g) Instead of the annuity provided in this or any other | ||||||
3 | Section of this
Article, an employee having attained age 65 | ||||||
4 | with at least 15 years of
service may elect to receive a | ||||||
5 | minimum annual annuity for life equal to 1%
of the highest | ||||||
6 | average annual salary for any 4 consecutive years within the
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7 | last 10 years of service immediately preceding retirement for | ||||||
8 | each year of
service, plus the sum of $25 for each year of | ||||||
9 | service provided that no such
minimum annual annuity may be | ||||||
10 | greater than 60% of such highest average
annual salary.
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11 | (h) The annuity is payable in equal monthly installments.
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12 | (i) If, by operation of law, a function of a governmental | ||||||
13 | unit, as
defined by Section 20-107 of this Code, is transferred | ||||||
14 | in whole or in part
to the county in which this Article 9 is | ||||||
15 | created as set forth in Section
9-101, and employees of the | ||||||
16 | governmental unit are transferred as a class to
such county, | ||||||
17 | the earnings credits in the retirement system covering the
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18 | governmental unit which have been validated under Section | ||||||
19 | 20-109 of this
Code shall be considered in determining the | ||||||
20 | highest average annual salary
for purposes of this Section | ||||||
21 | 9-134.
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22 | (j) The annuity being paid to an employee annuitant on July | ||||||
23 | 1, 1988,
shall be increased on that date by 1% for each full | ||||||
24 | year that has elapsed
from the date the annuity began.
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25 | (k) Notwithstanding anything to the contrary in this | ||||||
26 | Article 9, Section
20-131 shall not apply to an employee who |
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1 | withdraws on or after January 1,
1988, but prior to attaining | ||||||
2 | age 55. Therefore, no employee shall be
entitled to elect to | ||||||
3 | have the alternative formula previously set forth in
Section | ||||||
4 | 20-122 prior to the amendatory Act of 1975 apply to any | ||||||
5 | annuity,
the payment of which commenced after January 1, 1988, | ||||||
6 | but prior to such
employee's attainment of age 55.
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7 | (Source: P.A. 92-599, eff. 6-28-02.)
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8 | (40 ILCS 5/9-160) (from Ch. 108 1/2, par. 9-160)
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9 | Sec. 9-160. Annuity after withdrawal while disabled. An | ||||||
10 | employee whose disability continues after he has received | ||||||
11 | ordinary
disability benefit for the maximum period of time | ||||||
12 | prescribed by this
Article, and who withdraws before age 60 | ||||||
13 | while still so disabled, is
entitled to receive the annuity | ||||||
14 | provided from the total sum accumulated
to his credit from | ||||||
15 | employee contributions and county contributions to be
computed | ||||||
16 | as of his age on the date of withdrawal.
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17 | The annuity to which his wife shall be entitled upon his | ||||||
18 | death, shall
be fixed on the date of his withdrawal. It shall | ||||||
19 | be provided on a
reversionary annuity basis from the total sum | ||||||
20 | accumulated to his credit
for widow's annuity on the date of | ||||||
21 | such withdrawal.
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22 | Upon the death of any such employee while on annuity, if | ||||||
23 | his service
was at least 4 years after the date of his original | ||||||
24 | entry, and at least
2 years after the date of his latest | ||||||
25 | re-entry, his unmarried child or
children under age 18 shall be |
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1 | entitled to annuity specified in this
Article for children of | ||||||
2 | an employee who retires after age 50 (age 55 for
withdrawal | ||||||
3 | before January 1, 1988), subject to
prescribed limitations on | ||||||
4 | total payments to a family of an employee.
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5 | (Source: P.A. 85-964.)
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6 | Section 99. Effective date. This Act takes effect upon | ||||||
7 | becoming law.
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