Full Text of HB6225 98th General Assembly
HB6225 98TH GENERAL ASSEMBLY
   98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB6225 Introduced , by Rep. Chad Hays SYNOPSIS AS INTRODUCED: 

40 ILCS 5/15136  from Ch. 108 1/2, par. 15136 

Amends the State Universities Article of the Illinois Pension Code. In the moneypurchase formula of Rule 2, as amended by Public Act 98599, bases the minimum money purchase amount on the annuity that would have been payable if the participant had retired on June 30, 2014 (rather than during the fiscal year preceding the effective date of P.A. 98599). Includes a nonacceleration provision. Effective immediately.

 
  FISCAL NOTE ACT MAY APPLY   PENSION IMPACT NOTE ACT MAY APPLY 
  A BILL FOR 

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 1   AN ACT concerning 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 changing  5   Section 15136 as follows:
 6   (40 ILCS 5/15136) (from Ch. 108 1/2, par. 15136)
 7   (Text of Section before amendment by P.A. 98599 )
 8   Sec. 15136. Retirement annuities  Amount. The provisions  9   of this
Section 15136 apply only to those participants who are  10   participating in the
traditional benefit package or the  11   portable benefit package and do not
apply to participants who  12   are participating in the selfmanaged plan.
 13   (a) The amount of a participant's retirement annuity,  14   expressed in the form
of a singlelife annuity, shall be  15   determined by whichever of the following
rules is applicable  16   and provides the largest annuity:
 17   Rule 1: The retirement annuity shall be 1.67% of final rate  18   of earnings for
each of the first 10 years of service, 1.90%  19   for each of the next 10 years of
service, 2.10% for each year  20   of service in excess of 20 but not exceeding 30,
and 2.30% for  21   each year in excess of 30; or for persons who retire on or
 22   after January 1, 1998, 2.2% of the final rate of earnings for  23   each year of
service.

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 1   Rule 2: The retirement annuity shall be the sum of the  2   following,
determined from amounts credited to the participant  3   in accordance with the
actuarial tables and the effective rate  4   of interest in effect at the
time the retirement annuity  5   begins:
 6   (i) the normal annuity which can be provided on an  7   actuarially
equivalent basis, by the accumulated normal  8   contributions as of
the date the annuity begins;
 9   (ii) an annuity from employer contributions of an  10   amount equal to that
which can be provided on an  11   actuarially equivalent basis from the accumulated
normal  12   contributions made by the participant under Section  13   15113.6 and Section
15113.7 plus 1.4 times all other  14   accumulated normal contributions made by
the participant;  15   and
 16   (iii) the annuity that can be provided on an  17   actuarially equivalent basis
from the entire contribution  18   made by the participant under Section 15113.3.
 19   With respect to a police officer or firefighter who retires  20   on or after
August 14, 1998, the accumulated normal  21   contributions taken into account under
clauses (i) and (ii) of  22   this Rule 2 shall include the additional normal
contributions  23   made by the police officer or firefighter under Section
 24   15157(a).
 25   The amount of a retirement annuity calculated under this  26   Rule 2 shall
be computed solely on the basis of the 
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 1   participant's accumulated normal
contributions, as specified  2   in this Rule and defined in Section 15116.
Neither an employee  3   or employer contribution for early retirement under
Section  4   15136.2 nor any other employer contribution shall be used in  5   the
calculation of the amount of a retirement annuity under  6   this Rule 2.
 7   This amendatory Act of the 91st General Assembly is a  8   clarification of
existing law and applies to every participant  9   and annuitant without regard to
whether status as an employee  10   terminates before the effective date of this
amendatory Act.
 11   This Rule 2 does not apply to a person who first becomes an  12   employee under this Article on or after July 1, 2005.
 13   Rule 3: The retirement annuity of a participant who is  14   employed
at least onehalf time during the period on which his  15   or her final rate of
earnings is based, shall be equal to the  16   participant's years of service
not to exceed 30, multiplied by  17   (1) $96 if the participant's final rate
of earnings is less  18   than $3,500, (2) $108 if the final rate of earnings is
at least  19   $3,500 but less than $4,500, (3) $120 if the final rate of  20   earnings
is at least $4,500 but less than $5,500, (4) $132 if  21   the final rate
of earnings is at least $5,500 but less than  22   $6,500, (5)
$144 if the final rate of earnings is at least  23   $6,500 but less than
$7,500, (6) $156 if the final rate of  24   earnings is at least $7,500 but less
than $8,500, (7) $168 if  25   the final rate of earnings is at least $8,500 but
less than  26   $9,500, and (8) $180 if the final rate of earnings is $9,500 or

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 1   more, except that the annuity for those persons having made an  2   election under
Section 15154(a1) shall be calculated and  3   payable under the portable
retirement benefit program pursuant  4   to the provisions of Section 15136.4.
 5   Rule 4: A participant who is at least age 50 and has 25 or  6   more years of
service as a police officer or firefighter, and a  7   participant who is age 55 or
over and has at least 20 but less  8   than 25 years of service as a police officer
or firefighter,  9   shall be entitled to a retirement annuity of 2 1/4% of the
 10   final rate of earnings for each of the first 10 years of  11   service as a police
officer or firefighter, 2 1/2% for each of  12   the next 10 years of service as a
police officer or  13   firefighter, and 2 3/4% for each year of service as a police
 14   officer or firefighter in excess of 20. The retirement annuity  15   for all other
service shall be computed under Rule 1. A Tier 2  16   member is eligible for a retirement annuity calculated under  17   Rule 4 only if that Tier 2 member meets the service  18   requirements for that benefit calculation as prescribed under  19   this Rule 4 in addition to the applicable age requirement under  20   subsection (a5) of Section 15135.
 21   For purposes of this Rule 4, a participant's service as a  22   firefighter
shall also include the following:
 23   (i) service that is performed while the person is an  24   employee under
subsection (h) of Section 15107; and
 25   (ii) in the case of an individual who was a  26   participating employee
employed in the fire department of 
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 1   the University of Illinois's
ChampaignUrbana campus  2   immediately prior to the elimination of that fire
 3   department and who immediately after the elimination of  4   that fire department
transferred to another job with the  5   University of Illinois, service performed
as an employee of  6   the University of Illinois in a position other than police
 7   officer or firefighter, from the date of that transfer  8   until the employee's
next termination of service with the  9   University of Illinois.
 10   (b) For a Tier 1 member, the retirement annuity provided  11   under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for each  12   month the participant is under age 60 at the
time of  13   retirement. However, this reduction shall not apply in the  14   following
cases:
 15   (1) For a disabled participant whose disability  16   benefits have been
discontinued because he or she has  17   exhausted eligibility for disability
benefits under clause  18   (6) of Section 15152;
 19   (2) For a participant who has at least the number of  20   years of service
required to retire at any age under  21   subsection (a) of Section 15135; or
 22   (3) For that portion of a retirement annuity which has  23   been provided on
account of service of the participant  24   during periods when he or she performed
the duties of a  25   police officer or firefighter, if these duties were  26   performed
for at least 5 years immediately preceding the 
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 1   date the retirement annuity
is to begin.
 2   (b5) The retirement annuity of a Tier 2 member who is  3   retiring after attaining age 62 with at least 10 years of  4   service credit shall be reduced by 1/2 of 1% for each full  5   month that the member's age is under age 67.  6   (c) The maximum retirement annuity provided under Rules 1,  7   2, 4,
and 5
shall be the lesser of (1) the annual limit of  8   benefits as specified in
Section 415 of the Internal Revenue  9   Code of 1986, as such Section may be
amended from time to time  10   and as such benefit limits shall be adjusted by
the  11   Commissioner of Internal Revenue, and (2) 80% of final rate of
 12   earnings.
 13   (d) A Tier 1 member whose status as an employee terminates  14   after August 14,
1969 shall receive automatic increases in his  15   or her retirement annuity as
follows:
 16   Effective January 1 immediately following the date the  17   retirement annuity
begins, the annuitant shall receive an  18   increase in his or her monthly
retirement annuity of 0.125% of  19   the monthly retirement annuity provided under
Rule 1, Rule 2,  20   Rule 3, or Rule 4 contained in this
Section, multiplied by
the  21   number of full months which elapsed from the date the  22   retirement annuity
payments began to January 1, 1972, plus  23   0.1667% of such annuity, multiplied by
the number of full  24   months which elapsed from January 1, 1972, or the date the
 25   retirement annuity payments began, whichever is later, to  26   January 1, 1978, plus
0.25% of such annuity multiplied by the 
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 1   number of full months which elapsed
from January 1, 1978, or  2   the date the retirement annuity payments began,
whichever is  3   later, to the effective date of the increase.
 4   The annuitant shall receive an increase in his or her  5   monthly retirement
annuity on each January 1 thereafter during  6   the annuitant's life of 3% of
the monthly annuity provided  7   under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this  8   Section. The change made under this subsection by P.A. 81970  9   is
effective January 1, 1980 and applies to each annuitant  10   whose status as
an employee terminates before or after that  11   date.
 12   Beginning January 1, 1990, all automatic annual increases  13   payable under
this Section shall be calculated as a percentage  14   of the total annuity
payable at the time of the increase,  15   including all increases previously
granted under this Article.
 16   The change made in this subsection by P.A. 851008 is  17   effective January
26, 1988, and is applicable without regard to  18   whether status as an employee
terminated before that date.
 19   (d5) A retirement annuity of a Tier 2 member shall receive  20   annual increases on the January 1 occurring either on or after  21   the attainment of age 67 or the first anniversary of the  22   annuity start date, whichever is later. Each annual increase  23   shall be calculated at 3% or one half the annual unadjusted  24   percentage increase (but not less than zero) in the consumer  25   price indexu for the 12 months ending with the September  26   preceding each November 1, whichever is less, of the originally 
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 1   granted retirement annuity. If the annual unadjusted  2   percentage change in the consumer price indexu for the 12  3   months ending with the September preceding each November 1 is  4   zero or there is a decrease, then the annuity shall not be  5   increased.  6   (e) If, on January 1, 1987, or the date the retirement  7   annuity payment
period begins, whichever is later, the sum of  8   the retirement annuity
provided under Rule 1 or Rule 2 of this  9   Section
and the automatic annual increases provided under the  10   preceding subsection
or Section 15136.1, amounts to less than  11   the retirement
annuity which would be provided by Rule 3, the  12   retirement
annuity shall be increased as of January 1, 1987, or  13   the date the
retirement annuity payment period begins,  14   whichever is later, to the amount
which would be provided by  15   Rule 3 of this Section. Such increased
amount shall be  16   considered as the retirement annuity in determining
benefits  17   provided under other Sections of this Article. This paragraph
 18   applies without regard to whether status as an employee  19   terminated before the
effective date of this amendatory Act of  20   1987, provided that the annuitant was
employed at least  21   onehalf time during the period on which the final rate of
 22   earnings was based.
 23   (f) A participant is entitled to such additional annuity as  24   may be provided
on an actuarially equivalent basis, by any  25   accumulated
additional contributions to his or her credit.  26   However,
the additional contributions made by the participant 
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 1   toward the automatic
increases in annuity provided under this  2   Section shall not be taken into
account in determining the  3   amount of such additional annuity.
 4   (g) If, (1) by law, a function of a governmental unit, as  5   defined by Section
20107 of this Code, is transferred in whole  6   or in part to an employer, and (2)
a participant transfers  7   employment from such governmental unit to such employer
within  8   6 months after the transfer of the function, and (3) the sum of  9   (A) the
annuity payable to the participant under Rule 1, 2, or  10   3 of this Section (B)
all proportional annuities payable to the  11   participant by all other retirement
systems covered by Article  12   20, and (C) the initial primary insurance amount to
which the  13   participant is entitled under the Social Security Act, is less  14   than
the retirement annuity which would have been payable if  15   all of the
participant's pension credits validated under  16   Section 20109 had been validated
under this system, a  17   supplemental annuity equal to the difference in such
amounts  18   shall be payable to the participant.
 19   (h) On January 1, 1981, an annuitant who was receiving
a  20   retirement annuity on or before January 1, 1971 shall have his  21   or her
retirement annuity then being paid increased $1 per  22   month for
each year of creditable service. On January 1, 1982,  23   an annuitant whose
retirement annuity began on or before  24   January 1, 1977, shall have his or her
retirement annuity then  25   being paid increased $1 per month for each year of
creditable  26   service.

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 1   (i) On January 1, 1987, any annuitant whose retirement  2   annuity began on or
before January 1, 1977, shall have the  3   monthly retirement annuity increased by
an amount equal to 8˘  4   per year of creditable service times the number of years
that  5   have elapsed since the annuity began.
 6   (Source: P.A. 97933, eff. 81012; 97968, eff. 81612;  7   9892, eff. 71613.)
 8   (Text of Section after amendment by P.A. 98599 )
 9   Sec. 15136. Retirement annuities  Amount. The provisions  10   of this
Section 15136 apply only to those participants who are  11   participating in the
traditional benefit package or the  12   portable benefit package and do not
apply to participants who  13   are participating in the selfmanaged plan.
 14   (a) The amount of a participant's retirement annuity,  15   expressed in the form
of a singlelife annuity, shall be  16   determined by whichever of the following
rules is applicable  17   and provides the largest annuity:
 18   Rule 1: The retirement annuity shall be 1.67% of final rate  19   of earnings for
each of the first 10 years of service, 1.90%  20   for each of the next 10 years of
service, 2.10% for each year  21   of service in excess of 20 but not exceeding 30,
and 2.30% for  22   each year in excess of 30; or for persons who retire on or
 23   after January 1, 1998, 2.2% of the final rate of earnings for  24   each year of
service.
 25   Rule 2: The retirement annuity shall be the sum of the 
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 1   following,
determined from amounts credited to the participant  2   in accordance with the
actuarial tables and the effective rate  3   of interest in effect at the
time the retirement annuity  4   begins:
 5   (i) the normal annuity which can be provided on an  6   actuarially
equivalent basis (using the effective rate of  7   interest in effect at the time of retirement for  8   retirements occurring on or after July 1, 2014), by the  9   accumulated normal contributions as of
the date the annuity  10   begins;
 11   (ii) an annuity from employer contributions of an  12   amount equal to that
which can be provided on an  13   actuarially equivalent basis (using the effective rate of  14   interest in effect at the time of retirement for  15   retirements occurring on or after July 1, 2014) from the  16   accumulated
normal contributions made by the participant  17   under Section 15113.6 and Section
15113.7 plus 1.4 times  18   all other accumulated normal contributions made by
the  19   participant; and
 20   (iii) the annuity that can be provided on an  21   actuarially equivalent basis
(using the effective rate of  22   interest in effect at the time of retirement for  23   retirements occurring on or after July 1, 2014) from the  24   entire contribution made by the participant under Section  25   15113.3.
 26   Notwithstanding any other provision of this Rule 2, a 
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 1   participant's retirement annuity calculated under this Rule 2  2   shall not be less than the retirement annuity that participant  3   would have received under this Rule 2 had he or she retired on  4   June 30, 2014 during the fiscal year preceding the effective  5   date of this amendatory Act of the 98th General Assembly .  6   With respect to a police officer or firefighter who retires  7   on or after
August 14, 1998, the accumulated normal  8   contributions taken into account under
clauses (i) and (ii) of  9   this Rule 2 shall include the additional normal
contributions  10   made by the police officer or firefighter under Section
 11   15157(a).
 12   The amount of a retirement annuity calculated under this  13   Rule 2 shall
be computed solely on the basis of the  14   participant's accumulated normal
contributions, as specified  15   in this Rule and defined in Section 15116.
Neither an employee  16   or employer contribution for early retirement under
Section  17   15136.2 nor any other employer contribution shall be used in  18   the
calculation of the amount of a retirement annuity under  19   this Rule 2.
 20   This amendatory Act of the 91st General Assembly is a  21   clarification of
existing law and applies to every participant  22   and annuitant without regard to
whether status as an employee  23   terminates before the effective date of this
amendatory Act.
 24   This Rule 2 does not apply to a person who first becomes an  25   employee under this Article on or after July 1, 2005.
 26   Rule 3: The retirement annuity of a participant who is 
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 1   employed
at least onehalf time during the period on which his  2   or her final rate of
earnings is based, shall be equal to the  3   participant's years of service
not to exceed 30, multiplied by  4   (1) $96 if the participant's final rate
of earnings is less  5   than $3,500, (2) $108 if the final rate of earnings is
at least  6   $3,500 but less than $4,500, (3) $120 if the final rate of  7   earnings
is at least $4,500 but less than $5,500, (4) $132 if  8   the final rate
of earnings is at least $5,500 but less than  9   $6,500, (5)
$144 if the final rate of earnings is at least  10   $6,500 but less than
$7,500, (6) $156 if the final rate of  11   earnings is at least $7,500 but less
than $8,500, (7) $168 if  12   the final rate of earnings is at least $8,500 but
less than  13   $9,500, and (8) $180 if the final rate of earnings is $9,500 or
 14   more, except that the annuity for those persons having made an  15   election under
Section 15154(a1) shall be calculated and  16   payable under the portable
retirement benefit program pursuant  17   to the provisions of Section 15136.4.
 18   Rule 4: A participant who is at least age 50 and has 25 or  19   more years of
service as a police officer or firefighter, and a  20   participant who is age 55 or
over and has at least 20 but less  21   than 25 years of service as a police officer
or firefighter,  22   shall be entitled to a retirement annuity of 2 1/4% of the
 23   final rate of earnings for each of the first 10 years of  24   service as a police
officer or firefighter, 2 1/2% for each of  25   the next 10 years of service as a
police officer or  26   firefighter, and 2 3/4% for each year of service as a police

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 1   officer or firefighter in excess of 20. The retirement annuity  2   for all other
service shall be computed under Rule 1. A Tier 2  3   member is eligible for a retirement annuity calculated under  4   Rule 4 only if that Tier 2 member meets the service  5   requirements for that benefit calculation as prescribed under  6   this Rule 4 in addition to the applicable age requirement under  7   subsection (a5) of Section 15135.
 8   For purposes of this Rule 4, a participant's service as a  9   firefighter
shall also include the following:
 10   (i) service that is performed while the person is an  11   employee under
subsection (h) of Section 15107; and
 12   (ii) in the case of an individual who was a  13   participating employee
employed in the fire department of  14   the University of Illinois's
ChampaignUrbana campus  15   immediately prior to the elimination of that fire
 16   department and who immediately after the elimination of  17   that fire department
transferred to another job with the  18   University of Illinois, service performed
as an employee of  19   the University of Illinois in a position other than police
 20   officer or firefighter, from the date of that transfer  21   until the employee's
next termination of service with the  22   University of Illinois.
 23   (b) For a Tier 1 member, the retirement annuity provided  24   under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for each  25   month the participant is under age 60 at the
time of  26   retirement. However, this reduction shall not apply in the 
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 1   following
cases:
 2   (1) For a disabled participant whose disability  3   benefits have been
discontinued because he or she has  4   exhausted eligibility for disability
benefits under clause  5   (6) of Section 15152;
 6   (2) For a participant who has at least the number of  7   years of service
required to retire at any age under  8   subsection (a) of Section 15135; or
 9   (3) For that portion of a retirement annuity which has  10   been provided on
account of service of the participant  11   during periods when he or she performed
the duties of a  12   police officer or firefighter, if these duties were  13   performed
for at least 5 years immediately preceding the  14   date the retirement annuity
is to begin.
 15   (b5) The retirement annuity of a Tier 2 member who is  16   retiring after attaining age 62 with at least 10 years of  17   service credit shall be reduced by 1/2 of 1% for each full  18   month that the member's age is under age 67.  19   (c) The maximum retirement annuity provided under Rules 1,  20   2, 4,
and 5
shall be the lesser of (1) the annual limit of  21   benefits as specified in
Section 415 of the Internal Revenue  22   Code of 1986, as such Section may be
amended from time to time  23   and as such benefit limits shall be adjusted by
the  24   Commissioner of Internal Revenue, and (2) 80% of final rate of
 25   earnings.
 26   (d) This subsection (d) is subject to subsections (d1) and 
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 1   (d2). A Tier 1 member whose status as an employee terminates  2   after August 14,
1969 shall receive automatic increases in his  3   or her retirement annuity as
follows:
 4   Effective January 1 immediately following the date the  5   retirement annuity
begins, the annuitant shall receive an  6   increase in his or her monthly
retirement annuity of 0.125% of  7   the monthly retirement annuity provided under
Rule 1, Rule 2,  8   Rule 3, or Rule 4 contained in this
Section, multiplied by
the  9   number of full months which elapsed from the date the  10   retirement annuity
payments began to January 1, 1972, plus  11   0.1667% of such annuity, multiplied by
the number of full  12   months which elapsed from January 1, 1972, or the date the
 13   retirement annuity payments began, whichever is later, to  14   January 1, 1978, plus
0.25% of such annuity multiplied by the  15   number of full months which elapsed
from January 1, 1978, or  16   the date the retirement annuity payments began,
whichever is  17   later, to the effective date of the increase.
 18   The annuitant shall receive an increase in his or her  19   monthly retirement
annuity on each January 1 thereafter during  20   the annuitant's life of 3% of
the monthly annuity provided  21   under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this  22   Section. The change made under this subsection by P.A. 81970  23   is
effective January 1, 1980 and applies to each annuitant  24   whose status as
an employee terminates before or after that  25   date.
 26   Beginning January 1, 1990, all automatic annual increases 
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 1   payable under
this Section shall be calculated as a percentage  2   of the total annuity
payable at the time of the increase,  3   including all increases previously
granted under this Article.
 4   The change made in this subsection by P.A. 851008 is  5   effective January
26, 1988, and is applicable without regard to  6   whether status as an employee
terminated before that date.
 7   (d1) Notwithstanding subsection (d), but subject to the  8   provisions of subsection (d2), all automatic increases  9   payable under subsection (d) on or after the effective date of  10   this amendatory Act of the 98th General Assembly shall be  11   calculated as 3% of the lesser of (1) the total annuity
payable  12   at the time of the increase, including previous
increases  13   granted, or (2) $1,000 multiplied by the number of years of  14   creditable service upon which the annuity is based; however, in  15   the case of an initial increase subject to this subsection, the  16   amount of that increase shall be prorated if less than one year  17   has elapsed since retirement.  18   Beginning January 1, 2016, the $1,000 referred to in item  19   (2) of this subsection (d1) shall be increased on each January  20   1 by the annual unadjusted percentage increase (but not less  21   than zero) in the consumer price indexu for the 12 months  22   ending with the preceding September; these adjustments shall be  23   cumulative and compounded.
For the purposes of this subsection  24   (d1), "consumer price indexu" means the index published by  25   the Bureau of Labor Statistics of the United States Department  26   of Labor that measures the average change in prices of goods 
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 1   and services purchased by all urban consumers, United States  2   city average, all items, 198284 = 100. The new dollar amount  3   resulting from each annual adjustment shall be determined by  4   the Public Pension Division of the Department of Insurance and  5   made available to the System by November 1 of each year.  6   This subsection (d1) is applicable without regard to  7   whether the person is in service on or after the effective date  8   of this amendatory Act of the 98th General Assembly.  9   (d2) Notwithstanding subsections (d) and (d1), for an  10   active or inactive Tier 1 member who has not begun to receive a  11   retirement annuity under this Article before July 1, 2014:  12   (1) the automatic annual increase payable under  13   subsection (d) the second January following the date the  14   retirement annuity begins shall be equal to 0% of the total  15   annuity payable at the time of the increase, if he or she  16   is at least age 50 on the effective date of this amendatory  17   Act;  18   (2) the automatic annual increase payable under  19   subsection (d) the second, fourth, and sixth January  20   following the date the retirement annuity begins shall be  21   equal to 0% of the total annuity payable at the time of the  22   increase, if he or she is at least age 47 but less than age  23   50 on the effective date of this amendatory Act;  24   (3) the automatic annual increase payable under  25   subsection (d) the second, fourth, sixth, and eighth  26   January following the date the retirement annuity begins 
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 1   shall be equal to 0% of the total annuity payable at the  2   time of the increase, if he or she is at least age 44 but  3   less than age 47 on the effective date of this amendatory  4   Act;  5   (4) the automatic annual increase payable under  6   subsection (d) the second, fourth, sixth, eighth, and tenth  7   January following the date the retirement annuity begins  8   shall be equal to 0% of the total annuity payable at the  9   time of the increase, if he or she is less than age 44 on  10   the effective date of this amendatory Act.  11   (d5) A retirement annuity of a Tier 2 member shall receive  12   annual increases on the January 1 occurring either on or after  13   the attainment of age 67 or the first anniversary of the  14   annuity start date, whichever is later. Each annual increase  15   shall be calculated at 3% or one half the annual unadjusted  16   percentage increase (but not less than zero) in the consumer  17   price indexu for the 12 months ending with the September  18   preceding each November 1, whichever is less, of the originally  19   granted retirement annuity. If the annual unadjusted  20   percentage change in the consumer price indexu for the 12  21   months ending with the September preceding each November 1 is  22   zero or there is a decrease, then the annuity shall not be  23   increased.  24   (e) If, on January 1, 1987, or the date the retirement  25   annuity payment
period begins, whichever is later, the sum of  26   the retirement annuity
provided under Rule 1 or Rule 2 of this 
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 1   Section
and the automatic annual increases provided under the  2   preceding subsection
or Section 15136.1, amounts to less than  3   the retirement
annuity which would be provided by Rule 3, the  4   retirement
annuity shall be increased as of January 1, 1987, or  5   the date the
retirement annuity payment period begins,  6   whichever is later, to the amount
which would be provided by  7   Rule 3 of this Section. Such increased
amount shall be  8   considered as the retirement annuity in determining
benefits  9   provided under other Sections of this Article. This paragraph
 10   applies without regard to whether status as an employee  11   terminated before the
effective date of this amendatory Act of  12   1987, provided that the annuitant was
employed at least  13   onehalf time during the period on which the final rate of
 14   earnings was based.
 15   (f) A participant is entitled to such additional annuity as  16   may be provided
on an actuarially equivalent basis, by any  17   accumulated
additional contributions to his or her credit.  18   However,
the additional contributions made by the participant  19   toward the automatic
increases in annuity provided under this  20   Section shall not be taken into
account in determining the  21   amount of such additional annuity.
 22   (g) If, (1) by law, a function of a governmental unit, as  23   defined by Section
20107 of this Code, is transferred in whole  24   or in part to an employer, and (2)
a participant transfers  25   employment from such governmental unit to such employer
within  26   6 months after the transfer of the function, and (3) the sum of 
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 1   (A) the
annuity payable to the participant under Rule 1, 2, or  2   3 of this Section (B)
all proportional annuities payable to the  3   participant by all other retirement
systems covered by Article  4   20, and (C) the initial primary insurance amount to
which the  5   participant is entitled under the Social Security Act, is less  6   than
the retirement annuity which would have been payable if  7   all of the
participant's pension credits validated under  8   Section 20109 had been validated
under this system, a  9   supplemental annuity equal to the difference in such
amounts  10   shall be payable to the participant.
 11   (h) On January 1, 1981, an annuitant who was receiving
a  12   retirement annuity on or before January 1, 1971 shall have his  13   or her
retirement annuity then being paid increased $1 per  14   month for
each year of creditable service. On January 1, 1982,  15   an annuitant whose
retirement annuity began on or before  16   January 1, 1977, shall have his or her
retirement annuity then  17   being paid increased $1 per month for each year of
creditable  18   service.
 19   (i) On January 1, 1987, any annuitant whose retirement  20   annuity began on or
before January 1, 1977, shall have the  21   monthly retirement annuity increased by
an amount equal to 8˘  22   per year of creditable service times the number of years
that  23   have elapsed since the annuity began.
 24   (j) For participants to whom subsection (a3) of Section  25   15135 applies, the references to age 50, 55, and 62 in this  26   Section are increased as provided in subsection (a3) of 
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 1   Section 15135.  2   (Source: P.A. 97933, eff. 81012; 97968, eff. 81612;  3   9892, eff. 71613; 98599, eff. 6114.)
 4   Section 95. No acceleration or delay. Where this Act makes  5   changes in a statute that is represented in this Act by text  6   that is not yet or no longer in effect (for example, a Section  7   represented by multiple versions), the use of that text does  8   not accelerate or delay the taking effect of (i) the changes  9   made by this Act or (ii) provisions derived from any other  10   Public Act.
 11   Section 99. Effective date. This Act takes effect upon  12   becoming law.

