Full Text of SB2005 98th General Assembly
SB2005sam001 98TH GENERAL ASSEMBLY | Sen. Chapin Rose Filed: 5/1/2014
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| 1 | | AMENDMENT TO SENATE BILL 2005
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2005 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Section 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 | 9 | | of this
Section 15-136 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 self-managed plan.
| 13 | | (a) The amount of a participant's retirement annuity, | 14 | | expressed in the form
of a single-life annuity, shall be | 15 | | determined by whichever of the following
rules is applicable | 16 | | and provides the largest annuity:
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| 1 | | Rule 1: The retirement annuity shall be 1.67% of final rate | 2 | | of earnings for
each of the first 10 years of service, 1.90% | 3 | | for each of the next 10 years of
service, 2.10% for each year | 4 | | of service in excess of 20 but not exceeding 30,
and 2.30% for | 5 | | each year in excess of 30; or for persons who retire on or
| 6 | | after January 1, 1998, 2.2% of the final rate of earnings for | 7 | | each year of
service.
| 8 | | Rule 2: The retirement annuity shall be the sum of the | 9 | | following,
determined from amounts credited to the participant | 10 | | in accordance with the
actuarial tables and the effective rate | 11 | | of interest in effect at the
time the retirement annuity | 12 | | begins:
| 13 | | (i) the normal annuity which can be provided on an | 14 | | actuarially
equivalent basis, by the accumulated normal | 15 | | contributions as of
the date the annuity begins;
| 16 | | (ii) an annuity from employer contributions of an | 17 | | amount equal to that
which can be provided on an | 18 | | actuarially equivalent basis from the accumulated
normal | 19 | | contributions made by the participant under Section | 20 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other | 21 | | accumulated normal contributions made by
the participant; | 22 | | and
| 23 | | (iii) the annuity that can be provided on an | 24 | | actuarially equivalent basis
from the entire contribution | 25 | | made by the participant under Section 15-113.3.
| 26 | | With respect to a police officer or firefighter who retires |
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| 1 | | on or after
August 14, 1998, the accumulated normal | 2 | | contributions taken into account under
clauses (i) and (ii) of | 3 | | this Rule 2 shall include the additional normal
contributions | 4 | | made by the police officer or firefighter under Section
| 5 | | 15-157(a).
| 6 | | The amount of a retirement annuity calculated under this | 7 | | Rule 2 shall
be computed solely on the basis of the | 8 | | participant's accumulated normal
contributions, as specified | 9 | | in this Rule and defined in Section 15-116.
Neither an employee | 10 | | or employer contribution for early retirement under
Section | 11 | | 15-136.2 nor any other employer contribution shall be used in | 12 | | the
calculation of the amount of a retirement annuity under | 13 | | this Rule 2.
| 14 | | This amendatory Act of the 91st General Assembly is a | 15 | | clarification of
existing law and applies to every participant | 16 | | and annuitant without regard to
whether status as an employee | 17 | | terminates before the effective date of this
amendatory Act.
| 18 | | This Rule 2 does not apply to a person who first becomes an | 19 | | employee under this Article on or after July 1, 2005.
| 20 | | Rule 3: The retirement annuity of a participant who is | 21 | | employed
at least one-half time during the period on which his | 22 | | or her final rate of
earnings is based, shall be equal to the | 23 | | participant's years of service
not to exceed 30, multiplied by | 24 | | (1) $96 if the participant's final rate
of earnings is less | 25 | | than $3,500, (2) $108 if the final rate of earnings is
at least | 26 | | $3,500 but less than $4,500, (3) $120 if the final rate of |
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| 1 | | earnings
is at least $4,500 but less than $5,500, (4) $132 if | 2 | | the final rate
of earnings is at least $5,500 but less than | 3 | | $6,500, (5)
$144 if the final rate of earnings is at least | 4 | | $6,500 but less than
$7,500, (6) $156 if the final rate of | 5 | | earnings is at least $7,500 but less
than $8,500, (7) $168 if | 6 | | the final rate of earnings is at least $8,500 but
less than | 7 | | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
| 8 | | more, except that the annuity for those persons having made an | 9 | | election under
Section 15-154(a-1) shall be calculated and | 10 | | payable under the portable
retirement benefit program pursuant | 11 | | to the provisions of Section 15-136.4.
| 12 | | Rule 4: A participant who is at least age 50 and has 25 or | 13 | | more years of
service as a police officer or firefighter, and a | 14 | | participant who is age 55 or
over and has at least 20 but less | 15 | | than 25 years of service as a police officer
or firefighter, | 16 | | shall be entitled to a retirement annuity of 2 1/4% of the
| 17 | | final rate of earnings for each of the first 10 years of | 18 | | service as a police
officer or firefighter, 2 1/2% for each of | 19 | | the next 10 years of service as a
police officer or | 20 | | firefighter, and 2 3/4% for each year of service as a police
| 21 | | officer or firefighter in excess of 20. The retirement annuity | 22 | | for all other
service shall be computed under Rule 1. A Tier 2 | 23 | | member is eligible for a retirement annuity calculated under | 24 | | Rule 4 only if that Tier 2 member meets the service | 25 | | requirements for that benefit calculation as prescribed under | 26 | | this Rule 4 in addition to the applicable age requirement under |
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| 1 | | subsection (a-5) of Section 15-135.
| 2 | | For purposes of this Rule 4, a participant's service as a | 3 | | firefighter
shall also include the following:
| 4 | | (i) service that is performed while the person is an | 5 | | employee under
subsection (h) of Section 15-107; and
| 6 | | (ii) in the case of an individual who was a | 7 | | participating employee
employed in the fire department of | 8 | | the University of Illinois's
Champaign-Urbana campus | 9 | | immediately prior to the elimination of that fire
| 10 | | department and who immediately after the elimination of | 11 | | that fire department
transferred to another job with the | 12 | | University of Illinois, service performed
as an employee of | 13 | | the University of Illinois in a position other than police
| 14 | | officer or firefighter, from the date of that transfer | 15 | | until the employee's
next termination of service with the | 16 | | University of Illinois.
| 17 | | (b) For a Tier 1 member, the retirement annuity provided | 18 | | under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for each | 19 | | month the participant is under age 60 at the
time of | 20 | | retirement. However, this reduction shall not apply in the | 21 | | following
cases:
| 22 | | (1) For a disabled participant whose disability | 23 | | benefits have been
discontinued because he or she has | 24 | | exhausted eligibility for disability
benefits under clause | 25 | | (6) of Section 15-152;
| 26 | | (2) For a participant who has at least the number of |
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| 1 | | years of service
required to retire at any age under | 2 | | subsection (a) of Section 15-135; or
| 3 | | (3) For that portion of a retirement annuity which has | 4 | | been provided on
account of service of the participant | 5 | | during periods when he or she performed
the duties of a | 6 | | police officer or firefighter, if these duties were | 7 | | performed
for at least 5 years immediately preceding the | 8 | | date the retirement annuity
is to begin.
| 9 | | (b-5) The retirement annuity of a Tier 2 member who is | 10 | | retiring after attaining age 62 with at least 10 years of | 11 | | service credit shall be reduced by 1/2 of 1% for each full | 12 | | month that the member's age is under age 67. | 13 | | (c) The maximum retirement annuity provided under Rules 1, | 14 | | 2, 4,
and 5
shall be the lesser of (1) the annual limit of | 15 | | benefits as specified in
Section 415 of the Internal Revenue | 16 | | Code of 1986, as such Section may be
amended from time to time | 17 | | and as such benefit limits shall be adjusted by
the | 18 | | Commissioner of Internal Revenue, and (2) 80% of final rate of
| 19 | | earnings.
| 20 | | (d) A Tier 1 member whose status as an employee terminates | 21 | | after August 14,
1969 shall receive automatic increases in his | 22 | | or her retirement annuity as
follows:
| 23 | | Effective January 1 immediately following the date the | 24 | | retirement annuity
begins, the annuitant shall receive an | 25 | | increase in his or her monthly
retirement annuity of 0.125% of | 26 | | the monthly retirement annuity provided under
Rule 1, Rule 2, |
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| 1 | | Rule 3, or Rule 4 contained in this
Section, multiplied by
the | 2 | | number of full months which elapsed from the date the | 3 | | retirement annuity
payments began to January 1, 1972, plus | 4 | | 0.1667% of such annuity, multiplied by
the number of full | 5 | | months which elapsed from January 1, 1972, or the date the
| 6 | | retirement annuity payments began, whichever is later, to | 7 | | January 1, 1978, plus
0.25% of such annuity multiplied by the | 8 | | number of full months which elapsed
from January 1, 1978, or | 9 | | the date the retirement annuity payments began,
whichever is | 10 | | later, to the effective date of the increase.
| 11 | | The annuitant shall receive an increase in his or her | 12 | | monthly retirement
annuity on each January 1 thereafter during | 13 | | the annuitant's life of 3% of
the monthly annuity provided | 14 | | under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this | 15 | | Section. The change made under this subsection by P.A. 81-970 | 16 | | is
effective January 1, 1980 and applies to each annuitant | 17 | | whose status as
an employee terminates before or after that | 18 | | date.
| 19 | | Beginning January 1, 1990, all automatic annual increases | 20 | | payable under
this Section shall be calculated as a percentage | 21 | | of the total annuity
payable at the time of the increase, | 22 | | including all increases previously
granted under this Article.
| 23 | | The change made in this subsection by P.A. 85-1008 is | 24 | | effective January
26, 1988, and is applicable without regard to | 25 | | whether status as an employee
terminated before that date.
| 26 | | (d-5) A retirement annuity of a Tier 2 member shall receive |
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| 1 | | annual increases on the January 1 occurring either on or after | 2 | | the attainment of age 67 or the first anniversary of the | 3 | | annuity start date, whichever is later. Each annual increase | 4 | | shall be calculated at 3% or one half the annual unadjusted | 5 | | percentage increase (but not less than zero) in the consumer | 6 | | price index-u for the 12 months ending with the September | 7 | | preceding each November 1, whichever is less, of the originally | 8 | | granted retirement annuity. If the annual unadjusted | 9 | | percentage change in the consumer price index-u for the 12 | 10 | | months ending with the September preceding each November 1 is | 11 | | zero or there is a decrease, then the annuity shall not be | 12 | | increased. | 13 | | (e) If, on January 1, 1987, or the date the retirement | 14 | | annuity payment
period begins, whichever is later, the sum of | 15 | | the retirement annuity
provided under Rule 1 or Rule 2 of this | 16 | | Section
and the automatic annual increases provided under the | 17 | | preceding subsection
or Section 15-136.1, amounts to less than | 18 | | the retirement
annuity which would be provided by Rule 3, the | 19 | | retirement
annuity shall be increased as of January 1, 1987, or | 20 | | the date the
retirement annuity payment period begins, | 21 | | whichever is later, to the amount
which would be provided by | 22 | | Rule 3 of this Section. Such increased
amount shall be | 23 | | considered as the retirement annuity in determining
benefits | 24 | | provided under other Sections of this Article. This paragraph
| 25 | | applies without regard to whether status as an employee | 26 | | terminated before the
effective date of this amendatory Act of |
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| 1 | | 1987, provided that the annuitant was
employed at least | 2 | | one-half time during the period on which the final rate of
| 3 | | earnings was based.
| 4 | | (f) A participant is entitled to such additional annuity as | 5 | | may be provided
on an actuarially equivalent basis, by any | 6 | | accumulated
additional contributions to his or her credit. | 7 | | However,
the additional contributions made by the participant | 8 | | toward the automatic
increases in annuity provided under this | 9 | | Section shall not be taken into
account in determining the | 10 | | amount of such additional annuity.
| 11 | | (g) If, (1) by law, a function of a governmental unit, as | 12 | | defined by Section
20-107 of this Code, is transferred in whole | 13 | | or in part to an employer, and (2)
a participant transfers | 14 | | employment from such governmental unit to such employer
within | 15 | | 6 months after the transfer of the function, and (3) the sum of | 16 | | (A) the
annuity payable to the participant under Rule 1, 2, or | 17 | | 3 of this Section (B)
all proportional annuities payable to the | 18 | | participant by all other retirement
systems covered by Article | 19 | | 20, and (C) the initial primary insurance amount to
which the | 20 | | participant is entitled under the Social Security Act, is less | 21 | | than
the retirement annuity which would have been payable if | 22 | | all of the
participant's pension credits validated under | 23 | | Section 20-109 had been validated
under this system, a | 24 | | supplemental annuity equal to the difference in such
amounts | 25 | | shall be payable to the participant.
| 26 | | (h) On January 1, 1981, an annuitant who was receiving
a |
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| 1 | | retirement annuity on or before January 1, 1971 shall have his | 2 | | or her
retirement annuity then being paid increased $1 per | 3 | | month for
each year of creditable service. On January 1, 1982, | 4 | | an annuitant whose
retirement annuity began on or before | 5 | | January 1, 1977, shall have his or her
retirement annuity then | 6 | | being paid increased $1 per month for each year of
creditable | 7 | | service.
| 8 | | (i) On January 1, 1987, any annuitant whose retirement | 9 | | annuity began on or
before January 1, 1977, shall have the | 10 | | monthly retirement annuity increased by
an amount equal to 8˘ | 11 | | per year of creditable service times the number of years
that | 12 | | have elapsed since the annuity began.
| 13 | | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12; | 14 | | 98-92, eff. 7-16-13.)
| 15 | | (Text of Section after amendment by P.A. 98-599 )
| 16 | | Sec. 15-136. Retirement annuities - Amount. The provisions | 17 | | of this
Section 15-136 apply only to those participants who are | 18 | | participating in the
traditional benefit package or the | 19 | | portable benefit package and do not
apply to participants who | 20 | | are participating in the self-managed plan.
| 21 | | (a) The amount of a participant's retirement annuity, | 22 | | expressed in the form
of a single-life annuity, shall be | 23 | | determined by whichever of the following
rules is applicable | 24 | | and provides the largest annuity:
| 25 | | Rule 1: The retirement annuity shall be 1.67% of final rate |
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| 1 | | of earnings for
each of the first 10 years of service, 1.90% | 2 | | for each of the next 10 years of
service, 2.10% for each year | 3 | | of service in excess of 20 but not exceeding 30,
and 2.30% for | 4 | | each year in excess of 30; or for persons who retire on or
| 5 | | after January 1, 1998, 2.2% of the final rate of earnings for | 6 | | each year of
service.
| 7 | | Rule 2: The retirement annuity shall be the sum of the | 8 | | following,
determined from amounts credited to the participant | 9 | | in accordance with the
actuarial tables and the effective rate | 10 | | of interest in effect at the
time the retirement annuity | 11 | | begins:
| 12 | | (i) the normal annuity 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), by the | 16 | | accumulated normal contributions as of
the date the annuity | 17 | | begins;
| 18 | | (ii) an annuity from employer contributions of an | 19 | | amount equal to that
which can be provided on an | 20 | | actuarially equivalent basis (using the effective rate of | 21 | | interest in effect at the time of retirement for | 22 | | retirements occurring on or after July 1, 2014) from the | 23 | | accumulated
normal contributions made by the participant | 24 | | under Section 15-113.6 and Section
15-113.7 plus 1.4 times | 25 | | all other accumulated normal contributions made by
the | 26 | | participant; and
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| 1 | | (iii) the annuity that can be provided on an | 2 | | actuarially equivalent basis
(using the effective rate of | 3 | | interest in effect at the time of retirement for | 4 | | retirements occurring on or after July 1, 2014) from the | 5 | | entire contribution made by the participant under Section | 6 | | 15-113.3.
| 7 | | Notwithstanding any other provision of this Rule 2, a | 8 | | participant's retirement annuity calculated under this Rule 2 | 9 | | shall not be less than the retirement annuity that participant | 10 | | would have received under this Rule 2 had he or she retired on | 11 | | June 30, 2014 during the fiscal year preceding the effective | 12 | | date of this amendatory Act of the 98th General Assembly . | 13 | | With respect to a police officer or firefighter who retires | 14 | | on or after
August 14, 1998, the accumulated normal | 15 | | contributions taken into account under
clauses (i) and (ii) of | 16 | | this Rule 2 shall include the additional normal
contributions | 17 | | made by the police officer or firefighter under Section
| 18 | | 15-157(a).
| 19 | | The amount of a retirement annuity calculated under this | 20 | | Rule 2 shall
be computed solely on the basis of the | 21 | | participant's accumulated normal
contributions, as specified | 22 | | in this Rule and defined in Section 15-116.
Neither an employee | 23 | | or employer contribution for early retirement under
Section | 24 | | 15-136.2 nor any other employer contribution shall be used in | 25 | | the
calculation of the amount of a retirement annuity under | 26 | | this Rule 2.
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| 1 | | This amendatory Act of the 91st General Assembly is a | 2 | | clarification of
existing law and applies to every participant | 3 | | and annuitant without regard to
whether status as an employee | 4 | | terminates before the effective date of this
amendatory Act.
| 5 | | This Rule 2 does not apply to a person who first becomes an | 6 | | employee under this Article on or after July 1, 2005.
| 7 | | Rule 3: The retirement annuity of a participant who is | 8 | | employed
at least one-half time during the period on which his | 9 | | or her final rate of
earnings is based, shall be equal to the | 10 | | participant's years of service
not to exceed 30, multiplied by | 11 | | (1) $96 if the participant's final rate
of earnings is less | 12 | | than $3,500, (2) $108 if the final rate of earnings is
at least | 13 | | $3,500 but less than $4,500, (3) $120 if the final rate of | 14 | | earnings
is at least $4,500 but less than $5,500, (4) $132 if | 15 | | the final rate
of earnings is at least $5,500 but less than | 16 | | $6,500, (5)
$144 if the final rate of earnings is at least | 17 | | $6,500 but less than
$7,500, (6) $156 if the final rate of | 18 | | earnings is at least $7,500 but less
than $8,500, (7) $168 if | 19 | | the final rate of earnings is at least $8,500 but
less than | 20 | | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
| 21 | | more, except that the annuity for those persons having made an | 22 | | election under
Section 15-154(a-1) shall be calculated and | 23 | | payable under the portable
retirement benefit program pursuant | 24 | | to the provisions of Section 15-136.4.
| 25 | | Rule 4: A participant who is at least age 50 and has 25 or | 26 | | more years of
service as a police officer or firefighter, and a |
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| 1 | | participant who is age 55 or
over and has at least 20 but less | 2 | | than 25 years of service as a police officer
or firefighter, | 3 | | shall be entitled to a retirement annuity of 2 1/4% of the
| 4 | | final rate of earnings for each of the first 10 years of | 5 | | service as a police
officer or firefighter, 2 1/2% for each of | 6 | | the next 10 years of service as a
police officer or | 7 | | firefighter, and 2 3/4% for each year of service as a police
| 8 | | officer or firefighter in excess of 20. The retirement annuity | 9 | | for all other
service shall be computed under Rule 1. A Tier 2 | 10 | | member is eligible for a retirement annuity calculated under | 11 | | Rule 4 only if that Tier 2 member meets the service | 12 | | requirements for that benefit calculation as prescribed under | 13 | | this Rule 4 in addition to the applicable age requirement under | 14 | | subsection (a-5) of Section 15-135.
| 15 | | For purposes of this Rule 4, a participant's service as a | 16 | | firefighter
shall also include the following:
| 17 | | (i) service that is performed while the person is an | 18 | | employee under
subsection (h) of Section 15-107; and
| 19 | | (ii) in the case of an individual who was a | 20 | | participating employee
employed in the fire department of | 21 | | the University of Illinois's
Champaign-Urbana campus | 22 | | immediately prior to the elimination of that fire
| 23 | | department and who immediately after the elimination of | 24 | | that fire department
transferred to another job with the | 25 | | University of Illinois, service performed
as an employee of | 26 | | the University of Illinois in a position other than police
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| 1 | | officer or firefighter, from the date of that transfer | 2 | | until the employee's
next termination of service with the | 3 | | University of Illinois.
| 4 | | (b) For a Tier 1 member, the retirement annuity provided | 5 | | under Rules 1 and 3 above shall be
reduced by 1/2 of 1% for each | 6 | | month the participant is under age 60 at the
time of | 7 | | retirement. However, this reduction shall not apply in the | 8 | | following
cases:
| 9 | | (1) For a disabled participant whose disability | 10 | | benefits have been
discontinued because he or she has | 11 | | exhausted eligibility for disability
benefits under clause | 12 | | (6) of Section 15-152;
| 13 | | (2) For a participant who has at least the number of | 14 | | years of service
required to retire at any age under | 15 | | subsection (a) of Section 15-135; or
| 16 | | (3) For that portion of a retirement annuity which has | 17 | | been provided on
account of service of the participant | 18 | | during periods when he or she performed
the duties of a | 19 | | police officer or firefighter, if these duties were | 20 | | performed
for at least 5 years immediately preceding the | 21 | | date the retirement annuity
is to begin.
| 22 | | (b-5) The retirement annuity of a Tier 2 member who is | 23 | | retiring after attaining age 62 with at least 10 years of | 24 | | service credit shall be reduced by 1/2 of 1% for each full | 25 | | month that the member's age is under age 67. | 26 | | (c) The maximum retirement annuity provided under Rules 1, |
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| 1 | | 2, 4,
and 5
shall be the lesser of (1) the annual limit of | 2 | | benefits as specified in
Section 415 of the Internal Revenue | 3 | | Code of 1986, as such Section may be
amended from time to time | 4 | | and as such benefit limits shall be adjusted by
the | 5 | | Commissioner of Internal Revenue, and (2) 80% of final rate of
| 6 | | earnings.
| 7 | | (d) This subsection (d) is subject to subsections (d-1) and | 8 | | (d-2). A Tier 1 member whose status as an employee terminates | 9 | | after August 14,
1969 shall receive automatic increases in his | 10 | | or her retirement annuity as
follows:
| 11 | | Effective January 1 immediately following the date the | 12 | | retirement annuity
begins, the annuitant shall receive an | 13 | | increase in his or her monthly
retirement annuity of 0.125% of | 14 | | the monthly retirement annuity provided under
Rule 1, Rule 2, | 15 | | Rule 3, or Rule 4 contained in this
Section, multiplied by
the | 16 | | number of full months which elapsed from the date the | 17 | | retirement annuity
payments began to January 1, 1972, plus | 18 | | 0.1667% of such annuity, multiplied by
the number of full | 19 | | months which elapsed from January 1, 1972, or the date the
| 20 | | retirement annuity payments began, whichever is later, to | 21 | | January 1, 1978, plus
0.25% of such annuity multiplied by the | 22 | | number of full months which elapsed
from January 1, 1978, or | 23 | | the date the retirement annuity payments began,
whichever is | 24 | | later, to the effective date of the increase.
| 25 | | The annuitant shall receive an increase in his or her | 26 | | monthly retirement
annuity on each January 1 thereafter during |
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| 1 | | the annuitant's life of 3% of
the monthly annuity provided | 2 | | under Rule 1, Rule 2, Rule 3, or Rule 4 contained
in this | 3 | | Section. The change made under this subsection by P.A. 81-970 | 4 | | is
effective January 1, 1980 and applies to each annuitant | 5 | | whose status as
an employee terminates before or after that | 6 | | date.
| 7 | | Beginning January 1, 1990, all automatic annual increases | 8 | | payable under
this Section shall be calculated as a percentage | 9 | | of the total annuity
payable at the time of the increase, | 10 | | including all increases previously
granted under this Article.
| 11 | | The change made in this subsection by P.A. 85-1008 is | 12 | | effective January
26, 1988, and is applicable without regard to | 13 | | whether status as an employee
terminated before that date.
| 14 | | (d-1) Notwithstanding subsection (d), but subject to the | 15 | | provisions of subsection (d-2), all automatic increases | 16 | | payable under subsection (d) on or after the effective date of | 17 | | this amendatory Act of the 98th General Assembly shall be | 18 | | calculated as 3% of the lesser of (1) the total annuity
payable | 19 | | at the time of the increase, including previous
increases | 20 | | granted, or (2) $1,000 multiplied by the number of years of | 21 | | creditable service upon which the annuity is based; however, in | 22 | | the case of an initial increase subject to this subsection, the | 23 | | amount of that increase shall be prorated if less than one year | 24 | | has elapsed since retirement. | 25 | | Beginning January 1, 2016, the $1,000 referred to in item | 26 | | (2) of this subsection (d-1) shall be increased on each January |
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| 1 | | 1 by the annual unadjusted percentage increase (but not less | 2 | | than zero) in the consumer price index-u for the 12 months | 3 | | ending with the preceding September; these adjustments shall be | 4 | | cumulative and compounded.
For the purposes of this subsection | 5 | | (d-1), "consumer price index-u" means the index published by | 6 | | the Bureau of Labor Statistics of the United States Department | 7 | | of Labor that measures the average change in prices of goods | 8 | | and services purchased by all urban consumers, United States | 9 | | city average, all items, 1982-84 = 100. The new dollar amount | 10 | | resulting from each annual adjustment shall be determined by | 11 | | the Public Pension Division of the Department of Insurance and | 12 | | made available to the System by November 1 of each year. | 13 | | This subsection (d-1) is applicable without regard to | 14 | | whether the person is in service on or after the effective date | 15 | | of this amendatory Act of the 98th General Assembly. | 16 | | (d-2) Notwithstanding subsections (d) and (d-1), for an | 17 | | active or inactive Tier 1 member who has not begun to receive a | 18 | | retirement annuity under this Article before July 1, 2014: | 19 | | (1) the automatic annual increase payable under | 20 | | subsection (d) the second January following the date the | 21 | | retirement annuity begins shall be equal to 0% of the total | 22 | | annuity payable at the time of the increase, if he or she | 23 | | is at least age 50 on the effective date of this amendatory | 24 | | Act; | 25 | | (2) the automatic annual increase payable under | 26 | | subsection (d) the second, fourth, and sixth January |
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| 1 | | following the date the retirement annuity begins shall be | 2 | | equal to 0% of the total annuity payable at the time of the | 3 | | increase, if he or she is at least age 47 but less than age | 4 | | 50 on the effective date of this amendatory Act; | 5 | | (3) the automatic annual increase payable under | 6 | | subsection (d) the second, fourth, sixth, and eighth | 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 at least age 44 but | 10 | | less than age 47 on the effective date of this amendatory | 11 | | Act; | 12 | | (4) the automatic annual increase payable under | 13 | | subsection (d) the second, fourth, sixth, eighth, and tenth | 14 | | January following the date the retirement annuity begins | 15 | | shall be equal to 0% of the total annuity payable at the | 16 | | time of the increase, if he or she is less than age 44 on | 17 | | the effective date of this amendatory Act. | 18 | | (d-5) A retirement annuity of a Tier 2 member shall receive | 19 | | annual increases on the January 1 occurring either on or after | 20 | | the attainment of age 67 or the first anniversary of the | 21 | | annuity start date, whichever is later. Each annual increase | 22 | | shall be calculated at 3% or one half the annual unadjusted | 23 | | percentage increase (but not less than zero) in the consumer | 24 | | price index-u for the 12 months ending with the September | 25 | | preceding each November 1, whichever is less, of the originally | 26 | | granted retirement annuity. If the annual unadjusted |
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| 1 | | percentage change in the consumer price index-u for the 12 | 2 | | months ending with the September preceding each November 1 is | 3 | | zero or there is a decrease, then the annuity shall not be | 4 | | increased. | 5 | | (e) If, on January 1, 1987, or the date the retirement | 6 | | annuity payment
period begins, whichever is later, the sum of | 7 | | the retirement annuity
provided under Rule 1 or Rule 2 of this | 8 | | Section
and the automatic annual increases provided under the | 9 | | preceding subsection
or Section 15-136.1, amounts to less than | 10 | | the retirement
annuity which would be provided by Rule 3, the | 11 | | retirement
annuity shall be increased as of January 1, 1987, or | 12 | | the date the
retirement annuity payment period begins, | 13 | | whichever is later, to the amount
which would be provided by | 14 | | Rule 3 of this Section. Such increased
amount shall be | 15 | | considered as the retirement annuity in determining
benefits | 16 | | provided under other Sections of this Article. This paragraph
| 17 | | applies without regard to whether status as an employee | 18 | | terminated before the
effective date of this amendatory Act of | 19 | | 1987, provided that the annuitant was
employed at least | 20 | | one-half time during the period on which the final rate of
| 21 | | earnings was based.
| 22 | | (f) A participant is entitled to such additional annuity as | 23 | | may be provided
on an actuarially equivalent basis, by any | 24 | | accumulated
additional contributions to his or her credit. | 25 | | However,
the additional contributions made by the participant | 26 | | toward the automatic
increases in annuity provided under this |
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| 1 | | Section shall not be taken into
account in determining the | 2 | | amount of such additional annuity.
| 3 | | (g) If, (1) by law, a function of a governmental unit, as | 4 | | defined by Section
20-107 of this Code, is transferred in whole | 5 | | or in part to an employer, and (2)
a participant transfers | 6 | | employment from such governmental unit to such employer
within | 7 | | 6 months after the transfer of the function, and (3) the sum of | 8 | | (A) the
annuity payable to the participant under Rule 1, 2, or | 9 | | 3 of this Section (B)
all proportional annuities payable to the | 10 | | participant by all other retirement
systems covered by Article | 11 | | 20, and (C) the initial primary insurance amount to
which the | 12 | | participant is entitled under the Social Security Act, is less | 13 | | than
the retirement annuity which would have been payable if | 14 | | all of the
participant's pension credits validated under | 15 | | Section 20-109 had been validated
under this system, a | 16 | | supplemental annuity equal to the difference in such
amounts | 17 | | shall be payable to the participant.
| 18 | | (h) On January 1, 1981, an annuitant who was receiving
a | 19 | | retirement annuity on or before January 1, 1971 shall have his | 20 | | or her
retirement annuity then being paid increased $1 per | 21 | | month for
each year of creditable service. On January 1, 1982, | 22 | | an annuitant whose
retirement annuity began on or before | 23 | | January 1, 1977, shall have his or her
retirement annuity then | 24 | | being paid increased $1 per month for each year of
creditable | 25 | | service.
| 26 | | (i) On January 1, 1987, any annuitant whose retirement |
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| 1 | | annuity began on or
before January 1, 1977, shall have the | 2 | | monthly retirement annuity increased by
an amount equal to 8˘ | 3 | | per year of creditable service times the number of years
that | 4 | | have elapsed since the annuity began.
| 5 | | (j) For participants to whom subsection (a-3) of Section | 6 | | 15-135 applies, the references to age 50, 55, and 62 in this | 7 | | Section are increased as provided in subsection (a-3) of | 8 | | Section 15-135. | 9 | | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12; | 10 | | 98-92, eff. 7-16-13; 98-599, eff. 6-1-14.)
| 11 | | Section 95. No acceleration or delay. Where this Act makes | 12 | | changes in a statute that is represented in this Act by text | 13 | | that is not yet or no longer in effect (for example, a Section | 14 | | represented by multiple versions), the use of that text does | 15 | | not accelerate or delay the taking effect of (i) the changes | 16 | | made by this Act or (ii) provisions derived from any other | 17 | | Public Act.
| 18 | | Section 99. Effective date. This Act takes effect upon | 19 | | becoming law.".
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