HB6225 98TH GENERAL ASSEMBLY

  
  

 


 
98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB6225

 

Introduced , by Rep. Chad Hays

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/15-136  from Ch. 108 1/2, par. 15-136

    Amends the State Universities Article of the Illinois Pension Code. In the money-purchase formula of Rule 2, as amended by Public Act 98-599, 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. 98-599). Includes a nonacceleration provision. Effective immediately.


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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,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Section 15-136 as follows:
 
6    (40 ILCS 5/15-136)  (from Ch. 108 1/2, par. 15-136)
7    (Text of Section before amendment by P.A. 98-599)
8    Sec. 15-136. Retirement annuities - Amount. The provisions
9of this Section 15-136 apply only to those participants who are
10participating in the traditional benefit package or the
11portable benefit package and do not apply to participants who
12are participating in the self-managed plan.
13    (a) The amount of a participant's retirement annuity,
14expressed in the form of a single-life annuity, shall be
15determined by whichever of the following rules is applicable
16and provides the largest annuity:
17    Rule 1: The retirement annuity shall be 1.67% of final rate
18of earnings for each of the first 10 years of service, 1.90%
19for each of the next 10 years of service, 2.10% for each year
20of service in excess of 20 but not exceeding 30, and 2.30% for
21each year in excess of 30; or for persons who retire on or
22after January 1, 1998, 2.2% of the final rate of earnings for
23each year of service.

 

 

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1    Rule 2: The retirement annuity shall be the sum of the
2following, determined from amounts credited to the participant
3in accordance with the actuarial tables and the effective rate
4of interest in effect at the time the retirement annuity
5begins:
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    15-113.6 and Section 15-113.7 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 15-113.3.
19    With respect to a police officer or firefighter who retires
20on or after August 14, 1998, the accumulated normal
21contributions taken into account under clauses (i) and (ii) of
22this Rule 2 shall include the additional normal contributions
23made by the police officer or firefighter under Section
2415-157(a).
25    The amount of a retirement annuity calculated under this
26Rule 2 shall be computed solely on the basis of the

 

 

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1participant's accumulated normal contributions, as specified
2in this Rule and defined in Section 15-116. Neither an employee
3or employer contribution for early retirement under Section
415-136.2 nor any other employer contribution shall be used in
5the calculation of the amount of a retirement annuity under
6this Rule 2.
7    This amendatory Act of the 91st General Assembly is a
8clarification of existing law and applies to every participant
9and annuitant without regard to whether status as an employee
10terminates before the effective date of this amendatory Act.
11    This Rule 2 does not apply to a person who first becomes an
12employee under this Article on or after July 1, 2005.
13    Rule 3: The retirement annuity of a participant who is
14employed at least one-half time during the period on which his
15or her final rate of earnings is based, shall be equal to the
16participant's years of service not to exceed 30, multiplied by
17(1) $96 if the participant's final rate of earnings is less
18than $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
20earnings is at least $4,500 but less than $5,500, (4) $132 if
21the 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
24earnings is at least $7,500 but less than $8,500, (7) $168 if
25the 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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1more, except that the annuity for those persons having made an
2election under Section 15-154(a-1) shall be calculated and
3payable under the portable retirement benefit program pursuant
4to the provisions of Section 15-136.4.
5    Rule 4: A participant who is at least age 50 and has 25 or
6more years of service as a police officer or firefighter, and a
7participant who is age 55 or over and has at least 20 but less
8than 25 years of service as a police officer or firefighter,
9shall be entitled to a retirement annuity of 2 1/4% of the
10final rate of earnings for each of the first 10 years of
11service as a police officer or firefighter, 2 1/2% for each of
12the next 10 years of service as a police officer or
13firefighter, and 2 3/4% for each year of service as a police
14officer or firefighter in excess of 20. The retirement annuity
15for all other service shall be computed under Rule 1. A Tier 2
16member is eligible for a retirement annuity calculated under
17Rule 4 only if that Tier 2 member meets the service
18requirements for that benefit calculation as prescribed under
19this Rule 4 in addition to the applicable age requirement under
20subsection (a-5) of Section 15-135.
21    For purposes of this Rule 4, a participant's service as a
22firefighter shall also include the following:
23        (i) service that is performed while the person is an
24    employee under subsection (h) of Section 15-107; 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 Champaign-Urbana 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
11under Rules 1 and 3 above shall be reduced by 1/2 of 1% for each
12month the participant is under age 60 at the time of
13retirement. However, this reduction shall not apply in the
14following 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 15-152;
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 15-135; 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    (b-5) The retirement annuity of a Tier 2 member who is
3retiring after attaining age 62 with at least 10 years of
4service credit shall be reduced by 1/2 of 1% for each full
5month that the member's age is under age 67.
6    (c) The maximum retirement annuity provided under Rules 1,
72, 4, and 5 shall be the lesser of (1) the annual limit of
8benefits as specified in Section 415 of the Internal Revenue
9Code of 1986, as such Section may be amended from time to time
10and as such benefit limits shall be adjusted by the
11Commissioner of Internal Revenue, and (2) 80% of final rate of
12earnings.
13    (d) A Tier 1 member whose status as an employee terminates
14after August 14, 1969 shall receive automatic increases in his
15or her retirement annuity as follows:
16    Effective January 1 immediately following the date the
17retirement annuity begins, the annuitant shall receive an
18increase in his or her monthly retirement annuity of 0.125% of
19the monthly retirement annuity provided under Rule 1, Rule 2,
20Rule 3, or Rule 4 contained in this Section, multiplied by the
21number of full months which elapsed from the date the
22retirement annuity payments began to January 1, 1972, plus
230.1667% of such annuity, multiplied by the number of full
24months which elapsed from January 1, 1972, or the date the
25retirement annuity payments began, whichever is later, to
26January 1, 1978, plus 0.25% of such annuity multiplied by the

 

 

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1number of full months which elapsed from January 1, 1978, or
2the date the retirement annuity payments began, whichever is
3later, to the effective date of the increase.
4    The annuitant shall receive an increase in his or her
5monthly retirement annuity on each January 1 thereafter during
6the annuitant's life of 3% of the monthly annuity provided
7under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
8Section. The change made under this subsection by P.A. 81-970
9is effective January 1, 1980 and applies to each annuitant
10whose status as an employee terminates before or after that
11date.
12    Beginning January 1, 1990, all automatic annual increases
13payable under this Section shall be calculated as a percentage
14of the total annuity payable at the time of the increase,
15including all increases previously granted under this Article.
16    The change made in this subsection by P.A. 85-1008 is
17effective January 26, 1988, and is applicable without regard to
18whether status as an employee terminated before that date.
19    (d-5) A retirement annuity of a Tier 2 member shall receive
20annual increases on the January 1 occurring either on or after
21the attainment of age 67 or the first anniversary of the
22annuity start date, whichever is later. Each annual increase
23shall be calculated at 3% or one half the annual unadjusted
24percentage increase (but not less than zero) in the consumer
25price index-u for the 12 months ending with the September
26preceding each November 1, whichever is less, of the originally

 

 

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1granted retirement annuity. If the annual unadjusted
2percentage change in the consumer price index-u for the 12
3months ending with the September preceding each November 1 is
4zero or there is a decrease, then the annuity shall not be
5increased.
6    (e) If, on January 1, 1987, or the date the retirement
7annuity payment period begins, whichever is later, the sum of
8the retirement annuity provided under Rule 1 or Rule 2 of this
9Section and the automatic annual increases provided under the
10preceding subsection or Section 15-136.1, amounts to less than
11the retirement annuity which would be provided by Rule 3, the
12retirement annuity shall be increased as of January 1, 1987, or
13the date the retirement annuity payment period begins,
14whichever is later, to the amount which would be provided by
15Rule 3 of this Section. Such increased amount shall be
16considered as the retirement annuity in determining benefits
17provided under other Sections of this Article. This paragraph
18applies without regard to whether status as an employee
19terminated before the effective date of this amendatory Act of
201987, provided that the annuitant was employed at least
21one-half time during the period on which the final rate of
22earnings was based.
23    (f) A participant is entitled to such additional annuity as
24may be provided on an actuarially equivalent basis, by any
25accumulated additional contributions to his or her credit.
26However, the additional contributions made by the participant

 

 

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1toward the automatic increases in annuity provided under this
2Section shall not be taken into account in determining the
3amount of such additional annuity.
4    (g) If, (1) by law, a function of a governmental unit, as
5defined by Section 20-107 of this Code, is transferred in whole
6or in part to an employer, and (2) a participant transfers
7employment from such governmental unit to such employer within
86 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
103 of this Section (B) all proportional annuities payable to the
11participant by all other retirement systems covered by Article
1220, and (C) the initial primary insurance amount to which the
13participant is entitled under the Social Security Act, is less
14than the retirement annuity which would have been payable if
15all of the participant's pension credits validated under
16Section 20-109 had been validated under this system, a
17supplemental annuity equal to the difference in such amounts
18shall be payable to the participant.
19    (h) On January 1, 1981, an annuitant who was receiving a
20retirement annuity on or before January 1, 1971 shall have his
21or her retirement annuity then being paid increased $1 per
22month for each year of creditable service. On January 1, 1982,
23an annuitant whose retirement annuity began on or before
24January 1, 1977, shall have his or her retirement annuity then
25being paid increased $1 per month for each year of creditable
26service.

 

 

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1    (i) On January 1, 1987, any annuitant whose retirement
2annuity began on or before January 1, 1977, shall have the
3monthly retirement annuity increased by an amount equal to 8¢
4per year of creditable service times the number of years that
5have elapsed since the annuity began.
6(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12;
798-92, eff. 7-16-13.)
 
8    (Text of Section after amendment by P.A. 98-599)
9    Sec. 15-136. Retirement annuities - Amount. The provisions
10of this Section 15-136 apply only to those participants who are
11participating in the traditional benefit package or the
12portable benefit package and do not apply to participants who
13are participating in the self-managed plan.
14    (a) The amount of a participant's retirement annuity,
15expressed in the form of a single-life annuity, shall be
16determined by whichever of the following rules is applicable
17and provides the largest annuity:
18    Rule 1: The retirement annuity shall be 1.67% of final rate
19of earnings for each of the first 10 years of service, 1.90%
20for each of the next 10 years of service, 2.10% for each year
21of service in excess of 20 but not exceeding 30, and 2.30% for
22each year in excess of 30; or for persons who retire on or
23after January 1, 1998, 2.2% of the final rate of earnings for
24each year of service.
25    Rule 2: The retirement annuity shall be the sum of the

 

 

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1following, determined from amounts credited to the participant
2in accordance with the actuarial tables and the effective rate
3of interest in effect at the time the retirement annuity
4begins:
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 15-113.6 and Section 15-113.7 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    15-113.3.
26    Notwithstanding any other provision of this Rule 2, a

 

 

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1participant's retirement annuity calculated under this Rule 2
2shall not be less than the retirement annuity that participant
3would have received under this Rule 2 had he or she retired on
4June 30, 2014 during the fiscal year preceding the effective
5date of this amendatory Act of the 98th General Assembly.
6    With respect to a police officer or firefighter who retires
7on or after August 14, 1998, the accumulated normal
8contributions taken into account under clauses (i) and (ii) of
9this Rule 2 shall include the additional normal contributions
10made by the police officer or firefighter under Section
1115-157(a).
12    The amount of a retirement annuity calculated under this
13Rule 2 shall be computed solely on the basis of the
14participant's accumulated normal contributions, as specified
15in this Rule and defined in Section 15-116. Neither an employee
16or employer contribution for early retirement under Section
1715-136.2 nor any other employer contribution shall be used in
18the calculation of the amount of a retirement annuity under
19this Rule 2.
20    This amendatory Act of the 91st General Assembly is a
21clarification of existing law and applies to every participant
22and annuitant without regard to whether status as an employee
23terminates before the effective date of this amendatory Act.
24    This Rule 2 does not apply to a person who first becomes an
25employee under this Article on or after July 1, 2005.
26    Rule 3: The retirement annuity of a participant who is

 

 

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1employed at least one-half time during the period on which his
2or her final rate of earnings is based, shall be equal to the
3participant's years of service not to exceed 30, multiplied by
4(1) $96 if the participant's final rate of earnings is less
5than $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
7earnings is at least $4,500 but less than $5,500, (4) $132 if
8the 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
11earnings is at least $7,500 but less than $8,500, (7) $168 if
12the 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
14more, except that the annuity for those persons having made an
15election under Section 15-154(a-1) shall be calculated and
16payable under the portable retirement benefit program pursuant
17to the provisions of Section 15-136.4.
18    Rule 4: A participant who is at least age 50 and has 25 or
19more years of service as a police officer or firefighter, and a
20participant who is age 55 or over and has at least 20 but less
21than 25 years of service as a police officer or firefighter,
22shall be entitled to a retirement annuity of 2 1/4% of the
23final rate of earnings for each of the first 10 years of
24service as a police officer or firefighter, 2 1/2% for each of
25the next 10 years of service as a police officer or
26firefighter, and 2 3/4% for each year of service as a police

 

 

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1officer or firefighter in excess of 20. The retirement annuity
2for all other service shall be computed under Rule 1. A Tier 2
3member is eligible for a retirement annuity calculated under
4Rule 4 only if that Tier 2 member meets the service
5requirements for that benefit calculation as prescribed under
6this Rule 4 in addition to the applicable age requirement under
7subsection (a-5) of Section 15-135.
8    For purposes of this Rule 4, a participant's service as a
9firefighter shall also include the following:
10        (i) service that is performed while the person is an
11    employee under subsection (h) of Section 15-107; 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 Champaign-Urbana 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
24under Rules 1 and 3 above shall be reduced by 1/2 of 1% for each
25month the participant is under age 60 at the time of
26retirement. However, this reduction shall not apply in the

 

 

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1following 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 15-152;
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 15-135; 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    (b-5) The retirement annuity of a Tier 2 member who is
16retiring after attaining age 62 with at least 10 years of
17service credit shall be reduced by 1/2 of 1% for each full
18month that the member's age is under age 67.
19    (c) The maximum retirement annuity provided under Rules 1,
202, 4, and 5 shall be the lesser of (1) the annual limit of
21benefits as specified in Section 415 of the Internal Revenue
22Code of 1986, as such Section may be amended from time to time
23and as such benefit limits shall be adjusted by the
24Commissioner of Internal Revenue, and (2) 80% of final rate of
25earnings.
26    (d) This subsection (d) is subject to subsections (d-1) and

 

 

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1(d-2). A Tier 1 member whose status as an employee terminates
2after August 14, 1969 shall receive automatic increases in his
3or her retirement annuity as follows:
4    Effective January 1 immediately following the date the
5retirement annuity begins, the annuitant shall receive an
6increase in his or her monthly retirement annuity of 0.125% of
7the monthly retirement annuity provided under Rule 1, Rule 2,
8Rule 3, or Rule 4 contained in this Section, multiplied by the
9number of full months which elapsed from the date the
10retirement annuity payments began to January 1, 1972, plus
110.1667% of such annuity, multiplied by the number of full
12months which elapsed from January 1, 1972, or the date the
13retirement annuity payments began, whichever is later, to
14January 1, 1978, plus 0.25% of such annuity multiplied by the
15number of full months which elapsed from January 1, 1978, or
16the date the retirement annuity payments began, whichever is
17later, to the effective date of the increase.
18    The annuitant shall receive an increase in his or her
19monthly retirement annuity on each January 1 thereafter during
20the annuitant's life of 3% of the monthly annuity provided
21under Rule 1, Rule 2, Rule 3, or Rule 4 contained in this
22Section. The change made under this subsection by P.A. 81-970
23is effective January 1, 1980 and applies to each annuitant
24whose status as an employee terminates before or after that
25date.
26    Beginning January 1, 1990, all automatic annual increases

 

 

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1payable under this Section shall be calculated as a percentage
2of the total annuity payable at the time of the increase,
3including all increases previously granted under this Article.
4    The change made in this subsection by P.A. 85-1008 is
5effective January 26, 1988, and is applicable without regard to
6whether status as an employee terminated before that date.
7    (d-1) Notwithstanding subsection (d), but subject to the
8provisions of subsection (d-2), all automatic increases
9payable under subsection (d) on or after the effective date of
10this amendatory Act of the 98th General Assembly shall be
11calculated as 3% of the lesser of (1) the total annuity payable
12at the time of the increase, including previous increases
13granted, or (2) $1,000 multiplied by the number of years of
14creditable service upon which the annuity is based; however, in
15the case of an initial increase subject to this subsection, the
16amount of that increase shall be prorated if less than one year
17has elapsed since retirement.
18    Beginning January 1, 2016, the $1,000 referred to in item
19(2) of this subsection (d-1) shall be increased on each January
201 by the annual unadjusted percentage increase (but not less
21than zero) in the consumer price index-u for the 12 months
22ending with the preceding September; these adjustments shall be
23cumulative and compounded. For the purposes of this subsection
24(d-1), "consumer price index-u" means the index published by
25the Bureau of Labor Statistics of the United States Department
26of Labor that measures the average change in prices of goods

 

 

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1and services purchased by all urban consumers, United States
2city average, all items, 1982-84 = 100. The new dollar amount
3resulting from each annual adjustment shall be determined by
4the Public Pension Division of the Department of Insurance and
5made available to the System by November 1 of each year.
6    This subsection (d-1) is applicable without regard to
7whether the person is in service on or after the effective date
8of this amendatory Act of the 98th General Assembly.
9    (d-2) Notwithstanding subsections (d) and (d-1), for an
10active or inactive Tier 1 member who has not begun to receive a
11retirement 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    (d-5) A retirement annuity of a Tier 2 member shall receive
12annual increases on the January 1 occurring either on or after
13the attainment of age 67 or the first anniversary of the
14annuity start date, whichever is later. Each annual increase
15shall be calculated at 3% or one half the annual unadjusted
16percentage increase (but not less than zero) in the consumer
17price index-u for the 12 months ending with the September
18preceding each November 1, whichever is less, of the originally
19granted retirement annuity. If the annual unadjusted
20percentage change in the consumer price index-u for the 12
21months ending with the September preceding each November 1 is
22zero or there is a decrease, then the annuity shall not be
23increased.
24    (e) If, on January 1, 1987, or the date the retirement
25annuity payment period begins, whichever is later, the sum of
26the retirement annuity provided under Rule 1 or Rule 2 of this

 

 

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1Section and the automatic annual increases provided under the
2preceding subsection or Section 15-136.1, amounts to less than
3the retirement annuity which would be provided by Rule 3, the
4retirement annuity shall be increased as of January 1, 1987, or
5the date the retirement annuity payment period begins,
6whichever is later, to the amount which would be provided by
7Rule 3 of this Section. Such increased amount shall be
8considered as the retirement annuity in determining benefits
9provided under other Sections of this Article. This paragraph
10applies without regard to whether status as an employee
11terminated before the effective date of this amendatory Act of
121987, provided that the annuitant was employed at least
13one-half time during the period on which the final rate of
14earnings was based.
15    (f) A participant is entitled to such additional annuity as
16may be provided on an actuarially equivalent basis, by any
17accumulated additional contributions to his or her credit.
18However, the additional contributions made by the participant
19toward the automatic increases in annuity provided under this
20Section shall not be taken into account in determining the
21amount of such additional annuity.
22    (g) If, (1) by law, a function of a governmental unit, as
23defined by Section 20-107 of this Code, is transferred in whole
24or in part to an employer, and (2) a participant transfers
25employment from such governmental unit to such employer within
266 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
23 of this Section (B) all proportional annuities payable to the
3participant by all other retirement systems covered by Article
420, and (C) the initial primary insurance amount to which the
5participant is entitled under the Social Security Act, is less
6than the retirement annuity which would have been payable if
7all of the participant's pension credits validated under
8Section 20-109 had been validated under this system, a
9supplemental annuity equal to the difference in such amounts
10shall be payable to the participant.
11    (h) On January 1, 1981, an annuitant who was receiving a
12retirement annuity on or before January 1, 1971 shall have his
13or her retirement annuity then being paid increased $1 per
14month for each year of creditable service. On January 1, 1982,
15an annuitant whose retirement annuity began on or before
16January 1, 1977, shall have his or her retirement annuity then
17being paid increased $1 per month for each year of creditable
18service.
19    (i) On January 1, 1987, any annuitant whose retirement
20annuity began on or before January 1, 1977, shall have the
21monthly retirement annuity increased by an amount equal to 8¢
22per year of creditable service times the number of years that
23have elapsed since the annuity began.
24    (j) For participants to whom subsection (a-3) of Section
2515-135 applies, the references to age 50, 55, and 62 in this
26Section are increased as provided in subsection (a-3) of

 

 

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1Section 15-135.
2(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12;
398-92, eff. 7-16-13; 98-599, eff. 6-1-14.)
 
4    Section 95. No acceleration or delay. Where this Act makes
5changes in a statute that is represented in this Act by text
6that is not yet or no longer in effect (for example, a Section
7represented by multiple versions), the use of that text does
8not accelerate or delay the taking effect of (i) the changes
9made by this Act or (ii) provisions derived from any other
10Public Act.
 
11    Section 99. Effective date. This Act takes effect upon
12becoming law.