Full Text of HB0146 97th General Assembly
HB0146 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB0146 Introduced 1/18/2011, by Rep. Jack D. Franks SYNOPSIS AS INTRODUCED: |
| 40 ILCS 5/2-108.1 | from Ch. 108 1/2, par. 2-108.1 | 40 ILCS 5/2-126 | from Ch. 108 1/2, par. 2-126 | 40 ILCS 5/7-116 | from Ch. 108 1/2, par. 7-116 | 40 ILCS 5/7-173 | from Ch. 108 1/2, par. 7-173 | 40 ILCS 5/14-103.12 | from Ch. 108 1/2, par. 14-103.12 | 40 ILCS 5/14-133 | from Ch. 108 1/2, par. 14-133 | 40 ILCS 5/15-112 | from Ch. 108 1/2, par. 15-112 | 40 ILCS 5/15-157 | from Ch. 108 1/2, par. 15-157 | 40 ILCS 5/16-133 | from Ch. 108 1/2, par. 16-133 | 40 ILCS 5/16-152 | from Ch. 108 1/2, par. 16-152 | 40 ILCS 5/18-125 | from Ch. 108 1/2, par. 18-125 | 40 ILCS 5/18-133 | from Ch. 108 1/2, par. 18-133 |
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Amends the General Assembly, Illinois Municipal Retirement Fund, State Employees, State Universities, Downstate Teachers, and Judges Articles of the Illinois Pension Code. Caps the highest salary for annuity purposes, final rate of earnings, final average compensation, and final average salary for current members, participants, and participating employees of the affected systems at $106,800, but authorizes that amount to be annually increased
by the lesser of 3% or one-half of the annual percentage increase in the consumer price index-u
for the 12 months ending with the September preceding each
November 1. Requires employee contributions to also be based on these capped amounts. Effective July 1, 2011.
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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,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 2-108.1, 2-126, 7-116, 7-173, 14-103.12, 14-133, | 6 | | 15-112, 15-157, 16-133, 16-152, 18-125, and 18-133 as follows:
| 7 | | (40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
| 8 | | Sec. 2-108.1. Highest salary for annuity purposes.
| 9 | | (a) "Highest salary for annuity purposes" means whichever | 10 | | of
the following is applicable to the participant:
| 11 | | For a participant who first becomes a participant of this | 12 | | System before August 10, 2009 (the effective date of Public Act | 13 | | 96-207):
| 14 | | (1) For a participant who is a member of the General | 15 | | Assembly on his
or her last day of service: the highest | 16 | | salary that is prescribed by law,
on the participant's last | 17 | | day of service, for a member of the General
Assembly who is | 18 | | not an officer; plus, if the participant was elected or
| 19 | | appointed to serve as an officer of the General Assembly | 20 | | for 2 or more
years and has made contributions as required | 21 | | under subsection (d) of
Section 2-126, the highest | 22 | | additional amount of compensation prescribed by
law, at the | 23 | | time of the participant's service as an officer, for |
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| 1 | | members of
the General Assembly who serve in that office.
| 2 | | (2) For a participant who holds one of the State | 3 | | executive offices
specified in Section 2-105 on his or her | 4 | | last day of service: the highest
salary prescribed by law | 5 | | for service in that office on the participant's
last day of | 6 | | service.
| 7 | | (3) For a participant who is Clerk or Assistant Clerk | 8 | | of the House of Representatives or Secretary or Assistant | 9 | | Secretary of the Senate
on his or her last day of service: | 10 | | the salary received for service in that
capacity on the | 11 | | last day of service, but not to exceed the highest salary
| 12 | | (including additional compensation for service as an | 13 | | officer) that is
prescribed by law on the participant's | 14 | | last day of service for the highest
paid officer of the | 15 | | General Assembly.
| 16 | | (4) For a participant who is a continuing participant | 17 | | under Section
2-117.1 on his or her last day of service: | 18 | | the salary received for service
in that capacity on the | 19 | | last day of service, but not to exceed the highest
salary | 20 | | (including additional compensation for service as an | 21 | | officer) that
is prescribed by law on the participant's | 22 | | last day of service for the
highest paid officer of the | 23 | | General Assembly.
| 24 | | For a participant who first becomes a participant of this | 25 | | System on or after August 10, 2009 (the effective date of | 26 | | Public Act 96-207) and before January 1, 2011 (the effective |
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| 1 | | date of Public Act 96-889), the average monthly salary obtained | 2 | | by dividing the total salary of the participant during the | 3 | | period of: (1) the 48 consecutive months of service within the | 4 | | last 120 months of service in which the total compensation was | 5 | | the highest, or (2) the total period of service, if less than | 6 | | 48 months, by the number of months of service in that period. | 7 | | For a participant who first becomes a participant of this | 8 | | System on or after January 1, 2011 (the effective date of | 9 | | Public Act 96-889), the average monthly salary obtained by | 10 | | dividing the total salary of the participant during the 96 | 11 | | consecutive months of service within the last 120 months of | 12 | | service in which the total compensation was the highest by the | 13 | | number of months of service in that period; however, beginning | 14 | | January 1, 2011, the highest salary for annuity purposes may | 15 | | not exceed $106,800, except that that amount shall annually | 16 | | thereafter be increased by the lesser of (i) 3% of that amount, | 17 | | including all previous adjustments, or (ii) the annual | 18 | | unadjusted percentage increase (but not less than zero) in the | 19 | | consumer price index-u
for the 12 months ending with the | 20 | | September preceding each November 1. | 21 | | Notwithstanding any provision of this Article, for any | 22 | | person who is a participant on the effective date of this | 23 | | amendatory Act of the 97th General Assembly, the annual highest | 24 | | salary for annuity purposes may not exceed $106,800, as | 25 | | automatically increased
by the lesser of 3% or one-half of the | 26 | | annual percentage increase in the consumer price index-u
for |
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| 1 | | the 12 months ending with the September preceding each
November | 2 | | 1. | 3 | | "Consumer price index-u" means
the index published by the | 4 | | Bureau of Labor Statistics of the United States
Department of | 5 | | Labor that measures the average change in prices of goods and
| 6 | | services purchased by all urban consumers, United States city | 7 | | average, all
items, 1982-84 = 100. The new amount resulting | 8 | | from each annual adjustment
shall be determined by the Public | 9 | | Pension Division of the Department of Insurance and made | 10 | | available to the Board by November 1 of each year. | 11 | | (b) The earnings limitations of subsection (a) apply to | 12 | | earnings
under any other participating system under the | 13 | | Retirement Systems Reciprocal
Act that are considered in | 14 | | calculating a proportional annuity under this
Article, except | 15 | | in the case of a person who first became a member of this
| 16 | | System before August 22,
1994.
| 17 | | (c) In calculating the subsection (a) earnings limitation | 18 | | to be applied to
earnings under any other participating system | 19 | | under the Retirement Systems
Reciprocal Act for the purpose of | 20 | | calculating a proportional annuity under this
Article, the | 21 | | participant's last day of service shall be deemed to mean the | 22 | | last
day of service in any participating system from which the | 23 | | person has applied
for a proportional annuity under the | 24 | | Retirement Systems Reciprocal Act.
| 25 | | (Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11; | 26 | | 96-1490, eff. 1-1-11.)
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| 1 | | (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
| 2 | | Sec. 2-126. Contributions by participants.
| 3 | | (a) Each participant shall contribute toward the cost of | 4 | | his or her
retirement annuity a percentage of each payment of | 5 | | salary received by him or
her for service as a member as | 6 | | follows: for service between October 31, 1947
and January 1, | 7 | | 1959, 5%; for service between January 1, 1959 and June 30, | 8 | | 1969,
6%; for service between July 1, 1969 and January 10, | 9 | | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for | 10 | | service after December 31, 1981, 8 1/2%.
| 11 | | (b) Beginning August 2, 1949, each male participant, and | 12 | | from July 1,
1971, each female participant shall contribute | 13 | | towards the cost of the
survivor's annuity 2% of salary.
| 14 | | A participant who has no eligible survivor's annuity | 15 | | beneficiary may elect
to cease making contributions for | 16 | | survivor's annuity under this subsection.
A survivor's annuity | 17 | | shall not be payable upon the death of a person who has
made | 18 | | this election, unless prior to that death the election has been | 19 | | revoked
and the amount of the contributions that would have | 20 | | been paid under this
subsection in the absence of the election | 21 | | is paid to the System, together
with interest at the rate of 4% | 22 | | per year from the date the contributions
would have been made | 23 | | to the date of payment.
| 24 | | (c) Beginning July 1, 1967, each participant shall | 25 | | contribute 1% of
salary towards the cost of automatic increase |
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| 1 | | in annuity provided in
Section 2-119.1. These contributions | 2 | | shall be made concurrently with
contributions for retirement | 3 | | annuity purposes.
| 4 | | (d) In addition, each participant serving as an officer of | 5 | | the General
Assembly shall contribute, for the same purposes | 6 | | and at the same rates
as are required of a regular participant, | 7 | | on each additional payment
received as an officer. If the | 8 | | participant serves as an
officer for at least 2 but less than 4 | 9 | | years, he or she shall
contribute an amount equal to the amount | 10 | | that would have been contributed
had the participant served as | 11 | | an officer for 4 years. Persons who serve
as officers in the | 12 | | 87th General Assembly but cannot receive the additional
payment | 13 | | to officers because of the ban on increases in salary during | 14 | | their
terms may nonetheless make contributions based on those | 15 | | additional payments
for the purpose of having the additional | 16 | | payments included in their highest
salary for annuity purposes; | 17 | | however, persons electing to make these
additional | 18 | | contributions must also pay an amount representing the
| 19 | | corresponding employer contributions, as calculated by the | 20 | | System.
| 21 | | (e) Notwithstanding any other provision of this Article, | 22 | | the required contribution of a participant who first becomes a | 23 | | participant on or after January 1, 2011 or who is a participant | 24 | | on the effective date of this amendatory Act of the 97th | 25 | | General Assembly shall not exceed the contribution that would | 26 | | be due under this Article if that participant's highest salary |
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| 1 | | for annuity purposes were $106,800, plus any increases in that | 2 | | amount under Section 2-108.1. | 3 | | (Source: P.A. 96-1490, eff. 1-1-11.)
| 4 | | (40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
| 5 | | Sec. 7-116. "Final rate of earnings":
| 6 | | (a) For retirement and survivor annuities, the monthly | 7 | | earnings obtained
by dividing the total earnings received by | 8 | | the employee during the period of
either (1) the 48 consecutive | 9 | | months of service within the last 120 months of
service in | 10 | | which his total earnings were the highest or (2) the
employee's | 11 | | total period of service, by the number of months
of service in | 12 | | such period.
| 13 | | (b) For death benefits, the higher of the rate determined | 14 | | under
paragraph (a) of this Section or total earnings received | 15 | | in the last 12 months
of service divided by twelve. If the | 16 | | deceased employee has less than 12 months
of service, the | 17 | | monthly final rate shall be the monthly rate of pay the
| 18 | | employee was receiving when he began service.
| 19 | | (c) For disability benefits, the total earnings of a | 20 | | participating
employee in the last 12 calendar months of | 21 | | service prior to the date he
becomes disabled divided by 12.
| 22 | | (d) In computing the final rate of earnings: (1) the | 23 | | earnings rate for
all periods of prior service shall be | 24 | | considered equal to the average
earnings rate for the last 3 | 25 | | calendar years of prior service for
which creditable service is |
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| 1 | | received under Section 7-139 or, if there is less than 3 years | 2 | | of
creditable prior service, the average for the total prior | 3 | | service period
for which creditable service is received under | 4 | | Section 7-139; (2) for out
of state service and authorized
| 5 | | leave, the earnings rate shall be the rate upon which service | 6 | | credits are
granted; (3) periods of military leave shall not be | 7 | | considered; (4) the
earnings rate for all periods of disability | 8 | | shall be considered equal to
the rate of earnings upon which | 9 | | the employee's disability benefits are
computed for such | 10 | | periods; (5) the earnings to be considered for each of
the | 11 | | final three months of the final earnings period shall not | 12 | | exceed 125%
of the highest earnings of any other month in the | 13 | | final earnings period;
and (6) the annual amount of final rate | 14 | | of earnings shall be the monthly
amount multiplied by the | 15 | | number of months of service normally required by
the position | 16 | | in a year.
| 17 | | (e) Notwithstanding any provision of this Article, for any | 18 | | person who is a participating employee on the effective date of | 19 | | this amendatory Act of the 97th General Assembly, except for a | 20 | | sheriff's law enforcement employee under this Article, the | 21 | | annual final rate of earnings may not exceed $106,800, as | 22 | | automatically increased
by the lesser of 3% or one-half of the | 23 | | annual percentage increase in the consumer price index-u
for | 24 | | the 12 months ending with the September preceding each
November | 25 | | 1. For the purposes of this subsection (e), "consumer price | 26 | | index-u" means
the index published by the Bureau of Labor |
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| 1 | | Statistics of the United States
Department of Labor that | 2 | | measures the average change in prices of goods and
services | 3 | | purchased by all urban consumers, United States city average, | 4 | | all
items, 1982-84 = 100. | 5 | | (Source: P.A. 90-448, eff. 8-16-97.)
| 6 | | (40 ILCS 5/7-173) (from Ch. 108 1/2, par. 7-173)
| 7 | | Sec. 7-173. Contributions by employees.
| 8 | | (a) Each participating employee shall make contributions | 9 | | to the fund as
follows:
| 10 | | 1. For retirement annuity purposes, normal | 11 | | contributions of 3 3/4%
of earnings.
| 12 | | 2. Additional contributions of such percentages of | 13 | | each payment of
earnings, as shall be elected by the | 14 | | employee for retirement annuity
purposes, but not in excess | 15 | | of 10%. The selected rate shall be
applicable to all | 16 | | earnings paid following receipt by the Board of written | 17 | | notice of election to
make such contributions. Additional | 18 | | contributions at the selected rate
shall be made | 19 | | concurrently with normal contributions.
| 20 | | 3. Survivor contributions, by each participating | 21 | | employee, of 3/4%
of each payment of earnings.
| 22 | | (b) Each employee shall make contributions for Federal
| 23 | | Social Security taxes, for periods during which he is a covered
| 24 | | employee, as required by the Social Security Enabling Act and | 25 | | State and federal law. For
participating employees, such |
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| 1 | | contributions shall be in addition to
those required under | 2 | | paragraph (a) of this Section.
| 3 | | (c) Contributions shall be deducted from each | 4 | | corresponding payment
of earnings paid to each employee and | 5 | | shall be remitted to the board by
the participating | 6 | | municipality or participating instrumentality making
such | 7 | | payment. The remittance, together with a report of the earnings
| 8 | | and contributions shall be made as directed by the board. For | 9 | | township
treasurers and employees of township treasurers | 10 | | qualifying as employees
hereunder, the contributions herein | 11 | | required as deductions from salary
shall be withheld by the | 12 | | school township trustees from funds available
for the payment | 13 | | of the compensation of such treasurers and employees as
| 14 | | provided in the School Code and remitted to the board.
| 15 | | (d) An employee who has made additional contributions under
| 16 | | paragraph (a)2 of this Section may upon retirement or at any | 17 | | time prior
thereto, elect to withdraw the total of such | 18 | | additional contributions
including interest credited thereon | 19 | | to the end of the preceding calendar
year.
| 20 | | (e) Failure to make the deductions for employee | 21 | | contributions
provided in paragraph (c) of this Section shall | 22 | | not relieve the employee
from liability for such contributions. | 23 | | The amount of such liability may
be deducted, with interest | 24 | | charged under Section 7-209, from any
annuities or benefits | 25 | | payable hereunder to the employee or any other
person receiving | 26 | | an annuity or benefit by reason of such employee's
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| 1 | | participation.
| 2 | | (f) A participating employee who has at least 40 years of | 3 | | creditable
service in the Fund may elect to cease making the | 4 | | contributions required
under this Section. The status of the | 5 | | employee under this Article shall be
unaffected by this | 6 | | election, except that the employee shall not receive any
| 7 | | additional creditable service for the periods of employment | 8 | | following the
election. An election under this subsection | 9 | | relieves the employer from
making additional employer | 10 | | contributions in relation to that employee.
| 11 | | (g) Notwithstanding any other provision of this Article, | 12 | | the required contribution of a participant who first becomes a | 13 | | participant on or after January 1, 2011 or who is a participant | 14 | | on the effective date of this amendatory Act of the 97th | 15 | | General Assembly shall not exceed the contribution that would | 16 | | be due under this Article if that participant's highest salary | 17 | | for annuity purposes were $106,800, plus any increases in that | 18 | | amount under Section 7-116. | 19 | | (Source: P.A. 96-1084, eff. 7-16-10; 96-1258, eff. 7-23-10; | 20 | | revised 9-2-10.)
| 21 | | (40 ILCS 5/14-103.12) (from Ch. 108 1/2, par. 14-103.12)
| 22 | | Sec. 14-103.12. Final average compensation.
| 23 | | (a) For retirement and
survivor annuities, "final average | 24 | | compensation" means the monthly
compensation obtained by | 25 | | dividing the total compensation of an employee
during the |
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| 1 | | period of: (1) the 48 consecutive months of service within the
| 2 | | last 120 months of service in which the total compensation was | 3 | | the highest,
or (2) the total period of service, if less than | 4 | | 48 months, by the number
of months of service in such period; | 5 | | provided that for purposes of
a retirement annuity the average | 6 | | compensation for the last 12 months of the
48-month period | 7 | | shall not exceed the final average compensation by more than
| 8 | | 25%.
| 9 | | (b) For death and disability benefits, in the case of a | 10 | | full-time
employee, "final average compensation" means the | 11 | | greater of (1) the rate
of compensation of the employee at the | 12 | | date of death or disability
multiplied by 1 in the case of a | 13 | | salaried employee, by 174 in the case of
an hourly employee, | 14 | | and by 22 in the case of a per diem employee, or (2)
for | 15 | | benefits commencing on or after January 1, 1991, final average
| 16 | | compensation as determined under subsection (a).
| 17 | | For purposes of this paragraph, full or part-time status | 18 | | shall be
certified by the employing agency. Final rate of | 19 | | compensation for a
part-time employee shall be the total | 20 | | compensation earned during the last
full calendar month prior | 21 | | to the date of death or disability.
| 22 | | (c) Notwithstanding the provisions of subsection (a), for | 23 | | the purpose
of calculating retirement and survivor annuities of | 24 | | persons with at least
20 years of eligible creditable service | 25 | | as defined in Section 14-110, "final average compensation" | 26 | | means the monthly rate of
compensation received by the person |
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| 1 | | on the last day of eligible creditable
service (but not to | 2 | | exceed 115% of the average monthly compensation received
by the | 3 | | person for the last 24 months of service, unless the person was | 4 | | in
service as a State policeman before the effective date of | 5 | | this amendatory
Act of 1997), or the average monthly | 6 | | compensation received by the person for
the last 48 months of | 7 | | service prior to retirement, whichever is greater.
| 8 | | (d) Notwithstanding the provisions of subsection (a), for a | 9 | | person who
was receiving, on the date of retirement or death, a | 10 | | disability benefit
calculated under subdivision (b)(2) of this | 11 | | Section, the final average
compensation used to calculate the | 12 | | disability benefit may be used for
purposes of calculating the | 13 | | retirement and survivor annuities.
| 14 | | (e) In computing the final average compensation, periods of | 15 | | military leave
shall not be considered.
| 16 | | (f) The changes to this Section made by this amendatory Act | 17 | | of 1997
(redefining final average compensation for members | 18 | | under the alternative
formula) apply to members who retire on | 19 | | or after January 1, 1998, without
regard to whether employment | 20 | | terminated before the effective date of this
amendatory Act of | 21 | | 1997.
| 22 | | (g) For a member on leave of absence without pay who | 23 | | purchases service credit for such period of leave pursuant to | 24 | | subsection (l) of Section 14-104, earnings are assumed to be | 25 | | equal to the rate of compensation in effect immediately prior | 26 | | to the leave. If no contributions are required to establish |
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| 1 | | service credit for the period of leave, the member may elect to | 2 | | establish earnings credit for the leave period within 48 months | 3 | | after returning to work by making the employee and employer | 4 | | contributions required by subsection (l) of Section 14-104, | 5 | | based on the rate of compensation in effect immediately prior | 6 | | to the leave, plus interest at the actuarially assumed rate. In | 7 | | determining the contributions required for establishing | 8 | | service credit under this subsection (g), the interest shall be | 9 | | calculated from the beginning of the leave of absence to the | 10 | | date of payment. | 11 | | (h) Notwithstanding any provision of this Article, for any | 12 | | person who is a member on the effective date of this amendatory | 13 | | Act of the 97th General Assembly, annual final average | 14 | | compensation may not exceed $106,800, as automatically | 15 | | increased
by the lesser of 3% or one-half of the annual | 16 | | percentage increase in the consumer price index-u
for the 12 | 17 | | months ending with the September preceding each
November 1. For | 18 | | the purposes of this subsection (h), "consumer price index-u" | 19 | | means
the index published by the Bureau of Labor Statistics of | 20 | | the United States
Department of Labor that measures the average | 21 | | change in prices of goods and
services purchased by all urban | 22 | | consumers, United States city average, all
items, 1982-84 = | 23 | | 100. | 24 | | (Source: P.A. 96-525, eff. 8-14-09.)
| 25 | | (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
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| 1 | | Sec. 14-133. Contributions on behalf of members.
| 2 | | (a) Each participating employee shall make contributions | 3 | | to the System,
based on the employee's compensation, as | 4 | | follows:
| 5 | | (1) Covered employees, except as indicated below, 3.5% | 6 | | for
retirement annuity, and 0.5% for a widow or survivors
| 7 | | annuity;
| 8 | | (2) Noncovered employees, except as indicated below, | 9 | | 7% for retirement
annuity and 1% for a widow or survivors | 10 | | annuity;
| 11 | | (3) Noncovered employees serving in a position in which | 12 | | "eligible
creditable service" as defined in Section 14-110 | 13 | | may be earned, 1% for a widow
or survivors annuity
plus the | 14 | | following amount for retirement annuity: 8.5% through | 15 | | December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% | 16 | | in 2004 and thereafter;
| 17 | | (4) Covered employees serving in a position in which | 18 | | "eligible creditable
service" as defined in Section 14-110 | 19 | | may be earned, 0.5% for a widow or survivors annuity
plus | 20 | | the following amount for retirement annuity: 5% through | 21 | | December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 | 22 | | and thereafter;
| 23 | | (5) Each security employee of the Department of | 24 | | Corrections
or of the Department of Human Services who is a | 25 | | covered employee, 0.5% for a widow or survivors annuity
| 26 | | plus the following amount for retirement annuity: 5% |
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| 1 | | through December 31,
2001; 6% in 2002; 7% in 2003; and 8% | 2 | | in 2004 and thereafter;
| 3 | | (6) Each security employee of the Department of | 4 | | Corrections
or of the Department of Human Services who is | 5 | | not a covered employee, 1% for a widow or survivors annuity
| 6 | | plus the following amount for retirement annuity: 8.5% | 7 | | through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and | 8 | | 11.5% in 2004 and thereafter.
| 9 | | (b) Contributions shall be in the form of a deduction from
| 10 | | compensation and shall be made notwithstanding that the | 11 | | compensation
paid in cash to the employee shall be reduced | 12 | | thereby below the minimum
prescribed by law or regulation. Each | 13 | | member is deemed to consent and
agree to the deductions from | 14 | | compensation provided for in this Article,
and shall receipt in | 15 | | full for salary or compensation.
| 16 | | (c) Notwithstanding any other provision of this Article, | 17 | | the required contribution of a participant who first becomes a | 18 | | participant on or after January 1, 2011 or who is a participant | 19 | | on the effective date of this amendatory Act of the 97th | 20 | | General Assembly shall not exceed the contribution that would | 21 | | be due under this Article if that participant's highest salary | 22 | | for annuity purposes were $106,800, plus any increases in that | 23 | | amount under Section 14-103.12. | 24 | | (Source: P.A. 92-14, eff. 6-28-01.)
| 25 | | (40 ILCS 5/15-112) (from Ch. 108 1/2, par. 15-112)
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| 1 | | Sec. 15-112. Final rate of earnings. | 2 | | "Final rate of earnings": | 3 | | (a) This subsection (a) applies only to a person who first | 4 | | becomes a participant of any system before January 1, 2011. | 5 | |
For an employee who is paid on an hourly basis or who | 6 | | receives an annual salary
in installments during 12 months of | 7 | | each academic year, the average annual
earnings during the 48 | 8 | | consecutive calendar month period ending with the last
day of | 9 | | final termination of employment or the 4 consecutive academic | 10 | | years of
service in which the employee's earnings were the | 11 | | highest, whichever is
greater.
For any other employee, the | 12 | | average annual earnings during the 4 consecutive
academic years | 13 | | of service in which his or her earnings were the highest.
For | 14 | | an employee with less than 48 months or 4 consecutive academic | 15 | | years of
service, the average earnings during his or her entire | 16 | | period of service.
The earnings of an employee with more than | 17 | | 36 months of service prior to the
date of becoming a | 18 | | participant are, for such period, considered equal to the
| 19 | | average earnings during the last 36 months of such service. | 20 | | (b) This subsection (b) applies to a person to whom | 21 | | subsection (a) does not apply. | 22 | | For an employee who is paid on an hourly basis or who | 23 | | receives an annual salary in installments during 12 months of | 24 | | each academic year, the average annual earnings obtained by | 25 | | dividing by 8 the total earnings of the employee during the 96 | 26 | | consecutive months in which the total earnings were the highest |
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| 1 | | within the last 120 months prior to termination. | 2 | | For any other employee, the average annual earnings during | 3 | | the 8 consecutive academic years within the 10 years prior to | 4 | | termination in which the employee's earnings were the highest. | 5 | | For an employee with less than 96 consecutive months or 8 | 6 | | consecutive academic years of service, whichever is necessary, | 7 | | the average earnings during his or her entire period of | 8 | | service. | 9 | | (c) For an
employee on leave of absence with pay, or on | 10 | | leave of absence without pay
who makes contributions during | 11 | | such leave, earnings are assumed to be equal
to the basic | 12 | | compensation on the date the leave began. | 13 | | (d) For an employee on
disability leave, earnings are | 14 | | assumed to be equal to the basic compensation
on the date | 15 | | disability occurs or the average earnings during the 24 months
| 16 | | immediately preceding the month in which disability occurs, | 17 | | whichever is
greater.
| 18 | | (e) For a participant who retires on or after the effective | 19 | | date of this
amendatory Act of 1997 with at least 20 years of | 20 | | service as a firefighter or
police officer under this Article, | 21 | | the final rate of earnings shall be the
annual rate of earnings | 22 | | received by the participant on his or her last day as a
| 23 | | firefighter or police officer under this Article, if that is | 24 | | greater than the
final rate of earnings as calculated under the | 25 | | other provisions of this
Section.
| 26 | | (f) If a participant to whom subsection (a) of this Section |
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| 1 | | applies is an employee for at least
6 months during the | 2 | | academic year in which his or her employment
is terminated, the | 3 | | annual final rate of earnings shall be 25% of the sum
of (1) | 4 | | the annual basic compensation for that year, and (2) the amount
| 5 | | earned during the 36 months immediately preceding that year, if | 6 | | this is
greater than the final rate of earnings as calculated | 7 | | under the other
provisions of this Section.
| 8 | | (g) In the determination of the final rate of earnings for | 9 | | an employee, that
part of an employee's earnings for any | 10 | | academic year beginning after June 30,
1997, which exceeds the | 11 | | employee's earnings with that employer for the
preceding year | 12 | | by more than 20 percent shall be excluded; in the event
that an | 13 | | employee has more than one employer
this limitation shall be | 14 | | calculated separately for the earnings with
each employer. In | 15 | | making such calculation, only the basic compensation of
| 16 | | employees shall be considered, without regard to vacation or | 17 | | overtime or to
contracts for summer employment.
| 18 | | (h) The following are not considered as earnings in | 19 | | determining final rate of
earnings: (1) severance or separation | 20 | | pay, (2) retirement pay, (3)
payment for unused sick leave, and | 21 | | (4) payments from an employer for
the period used in | 22 | | determining final rate of earnings for any purpose other
than | 23 | | (i) services rendered, (ii) leave of absence or vacation | 24 | | granted
during that period, and (iii) vacation of up to 56 work | 25 | | days allowed upon
termination of employment; except that, if | 26 | | the benefit has been collectively
bargained between the |
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| 1 | | employer and the recognized collective bargaining agent
| 2 | | pursuant to the Illinois Educational Labor Relations Act, | 3 | | payment received
during a period of up to 2 academic years for | 4 | | unused sick leave may be
considered as earnings in accordance | 5 | | with the applicable collective bargaining
agreement, subject | 6 | | to the 20% increase limitation of this Section. Any unused
sick | 7 | | leave considered as earnings under this Section shall not be | 8 | | taken into
account in calculating service credit under Section | 9 | | 15-113.4.
| 10 | | (i) Intermittent periods of service shall be considered as | 11 | | consecutive in
determining final rate of earnings.
| 12 | | (j) Notwithstanding any provision of this Article, for any | 13 | | person who is a participating employee on the effective date of | 14 | | this amendatory Act of the 97th General Assembly, the annual | 15 | | final rate of earnings may not exceed $106,800, as | 16 | | automatically increased
by the lesser of 3% or one-half of the | 17 | | annual percentage increase in the consumer price index-u
for | 18 | | the 12 months ending with the September preceding each
November | 19 | | 1. For the purposes of this Section, "consumer price index-u" | 20 | | means
the index published by the Bureau of Labor Statistics of | 21 | | the United States
Department of Labor that measures the average | 22 | | change in prices of goods and
services purchased by all urban | 23 | | consumers, United States city average, all
items, 1982-84 = | 24 | | 100. | 25 | | (Source: P.A. 96-1490, eff. 1-1-11.)
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| 1 | | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
| 2 | | Sec. 15-157. Employee Contributions.
| 3 | | (a) Each participating employee
shall make contributions | 4 | | towards the retirement
benefits payable under the retirement | 5 | | program applicable to the
employee from each payment
of | 6 | | earnings applicable to employment under this system on and | 7 | | after the
date of becoming a participant as follows: Prior to | 8 | | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 | 9 | | to August 31, 1955, 5%; from
September 1, 1955 to August 31, | 10 | | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions | 11 | | are to be considered as normal contributions for purposes
of | 12 | | this Article.
| 13 | | Each participant who is a police officer or firefighter | 14 | | shall make normal
contributions of 8% of each payment of | 15 | | earnings applicable to employment as a
police officer or | 16 | | firefighter under this system on or after September 1, 1981,
| 17 | | unless he or she files with the board within 60 days after the | 18 | | effective date
of this amendatory Act of 1991 or 60 days after | 19 | | the board receives notice that
he or she is employed as a | 20 | | police officer or firefighter, whichever is later,
a written | 21 | | notice waiving the retirement formula provided by Rule 4 of | 22 | | Section
15-136. This waiver shall be irrevocable. If a | 23 | | participant had met the
conditions set forth in Section | 24 | | 15-132.1 prior to the effective date of this
amendatory Act of | 25 | | 1991 but failed to make the additional normal contributions
| 26 | | required by this paragraph, he or she may elect to pay the |
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| 1 | | additional
contributions plus compound interest at the | 2 | | effective rate. If such payment
is received by the board, the | 3 | | service shall be considered as police officer
service in | 4 | | calculating the retirement annuity under Rule 4 of Section | 5 | | 15-136.
While performing service described in clause (i) or | 6 | | (ii) of Rule 4 of Section
15-136, a participating employee | 7 | | shall be deemed to be employed as a
firefighter for the purpose | 8 | | of determining the rate of employee contributions
under this | 9 | | Section.
| 10 | | (b) Starting September 1, 1969, each participating | 11 | | employee shall make
additional contributions of 1/2 of 1% of | 12 | | earnings to finance a portion
of the cost of the annual | 13 | | increases in retirement annuity provided under
Section 15-136, | 14 | | except that with respect to participants in the
self-managed | 15 | | plan this additional contribution shall be used to finance the
| 16 | | benefits obtained under that retirement program.
| 17 | | (c) In addition to the amounts described in subsections (a) | 18 | | and (b) of this
Section, each participating employee shall make | 19 | | contributions of 1% of earnings
applicable under this system on | 20 | | and after August 1, 1959. The contributions
made under this | 21 | | subsection (c) shall be considered as survivor's insurance
| 22 | | contributions for purposes of this Article if the employee is | 23 | | covered under
the traditional benefit package, and such | 24 | | contributions shall be considered
as additional contributions | 25 | | for purposes of this Article if the employee is
participating | 26 | | in the self-managed plan or has elected to participate in the
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| 1 | | portable benefit package and has completed the applicable | 2 | | one-year waiting
period. Contributions in excess of $80 during | 3 | | any fiscal year beginning before
August 31, 1969 and in excess | 4 | | of $120 during any fiscal year thereafter until
September 1, | 5 | | 1971 shall be considered as additional contributions for | 6 | | purposes
of this Article.
| 7 | | (d) If the board by board rule so permits and subject to | 8 | | such conditions
and limitations as may be specified in its | 9 | | rules, a participant may make
other additional contributions of | 10 | | such percentage of earnings or amounts as
the participant shall | 11 | | elect in a written notice thereof received by the board.
| 12 | | (e) That fraction of a participant's total accumulated | 13 | | normal
contributions, the numerator of which is equal to the | 14 | | number of years of
service in excess of that which is required | 15 | | to qualify for the maximum
retirement annuity, and the | 16 | | denominator of which is equal to the total
service of the | 17 | | participant, shall be considered as accumulated additional
| 18 | | contributions. The determination of the applicable maximum | 19 | | annuity and
the adjustment in contributions required by this | 20 | | provision shall be made
as of the date of the participant's | 21 | | retirement.
| 22 | | (f) Notwithstanding the foregoing, a participating | 23 | | employee shall not
be required to make contributions under this | 24 | | Section after the date upon
which continuance of such | 25 | | contributions would otherwise cause his or her
retirement | 26 | | annuity to exceed the maximum retirement annuity as specified |
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| 1 | | in
clause (1) of subsection (c) of Section 15-136.
| 2 | | (g) A participating employee may make contributions for the | 3 | | purchase of
service credit under this Article.
| 4 | | (h) Notwithstanding any other provision of this Article, | 5 | | the required contribution of a participant who first becomes a | 6 | | participant on or after January 1, 2011 or who is a participant | 7 | | on the effective date of this amendatory Act of the 97th | 8 | | General Assembly shall not exceed the contribution that would | 9 | | be due under this Article if that participant's highest salary | 10 | | for annuity purposes were $106,800, plus any increases in that | 11 | | amount under Section 15-112. | 12 | | (Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448, | 13 | | eff. 8-16-97;
90-511, eff. 8-22-97; 90-576, eff. 3-31-98; | 14 | | 90-655, eff. 7-30-98; 90-766, eff.
8-14-98.)
| 15 | | (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
| 16 | | Sec. 16-133. Retirement annuity; amount.
| 17 | | (a) The amount of the retirement annuity shall be (i) in | 18 | | the case of a person who first became a teacher under this | 19 | | Article before July 1, 2005, the larger of the
amounts | 20 | | determined under paragraphs (A) and (B) below, or (ii) in the | 21 | | case of a person who first becomes a teacher under this Article | 22 | | on or after July 1, 2005, the amount determined under the | 23 | | applicable provisions of paragraph (B):
| 24 | | (A) An amount consisting of the sum of the following:
| 25 | | (1) An amount that can be provided on an |
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| 1 | | actuarially equivalent basis
by the member's | 2 | | accumulated contributions at the time of retirement; | 3 | | and
| 4 | | (2) The sum of (i) the amount that can be provided | 5 | | on an actuarially
equivalent basis by the member's | 6 | | accumulated contributions representing
service prior | 7 | | to July 1, 1947, and (ii) the amount that can be | 8 | | provided on
an actuarially equivalent basis by the | 9 | | amount obtained by multiplying 1.4
times the member's | 10 | | accumulated contributions covering service subsequent | 11 | | to
June 30, 1947; and
| 12 | | (3) If there is prior service, 2 times the amount | 13 | | that would have been
determined under subparagraph (2) | 14 | | of paragraph (A) above on account of
contributions | 15 | | which would have been made during the period of prior | 16 | | service
creditable to the member had the System been in | 17 | | operation and had the
member made contributions at the | 18 | | contribution rate in effect prior to
July 1, 1947.
| 19 | | This paragraph (A) does not apply to a person who first | 20 | | becomes a teacher under this Article on or after July 1, | 21 | | 2005.
| 22 | | (B) An amount consisting of the greater of the | 23 | | following:
| 24 | | (1) For creditable service earned before July 1, | 25 | | 1998 that has not
been augmented under Section | 26 | | 16-129.1: 1.67% of final average salary for
each of the |
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| 1 | | first 10 years of creditable service, 1.90% of final | 2 | | average salary
for each year in excess of 10 but not | 3 | | exceeding 20, 2.10% of final average
salary for each | 4 | | year in excess of 20 but not exceeding 30, and 2.30% of | 5 | | final
average salary for each year in excess of 30; and
| 6 | | For creditable service earned on or after July 1, | 7 | | 1998 by a member who
has at least 24 years of | 8 | | creditable service on July 1, 1998 and who
does not | 9 | | elect to augment service under Section 16-129.1: 2.2% | 10 | | of final
average salary for each year of creditable | 11 | | service earned on or after July 1,
1998 but before the | 12 | | member reaches a total of 30 years of creditable | 13 | | service
and 2.3% of final average salary for each year | 14 | | of creditable service earned
on or after July 1, 1998 | 15 | | and after the member reaches a total of 30 years of
| 16 | | creditable service; and
| 17 | | For all other creditable service: 2.2% of final | 18 | | average salary
for each year of creditable service; or
| 19 | | (2) 1.5% of final average salary for each year of
| 20 | | creditable service plus the sum $7.50 for each of the | 21 | | first 20 years of
creditable service.
| 22 | | The amount of the retirement annuity determined under this | 23 | | paragraph (B)
shall be reduced by 1/2 of 1% for each month | 24 | | that the member is less than
age 60 at the time the | 25 | | retirement annuity begins. However, this reduction
shall | 26 | | not apply (i) if the member has at least 35 years of |
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| 1 | | creditable service,
or (ii) if the member retires on | 2 | | account of disability under Section 16-149.2
of this | 3 | | Article with at least 20 years of creditable service, or | 4 | | (iii) if
the member (1) has earned during the period | 5 | | immediately preceding the last
day of service at least one | 6 | | year of contributing creditable service as an
employee of a | 7 | | department as defined in Section 14-103.04, (2) has earned | 8 | | at
least 5 years of contributing creditable service as an | 9 | | employee of a department
as defined in Section 14-103.04, | 10 | | (3) retires on or after January 1, 2001, and
(4) retires | 11 | | having attained an age which, when added to the number of | 12 | | years of
his or her total creditable service, equals at | 13 | | least 85. Portions of years
shall be counted as decimal | 14 | | equivalents.
| 15 | | (b) For purposes of this Section, final average salary | 16 | | shall be the
average salary for the highest 4 consecutive years | 17 | | within the last 10 years
of creditable service as determined | 18 | | under rules of the board. The minimum
final average salary | 19 | | shall be considered to be $2,400 per year.
| 20 | | In the determination of final average salary for members | 21 | | other than
elected officials and their appointees when such | 22 | | appointees are allowed by
statute, that part of a member's | 23 | | salary for any year beginning after June
30, 1979 which exceeds | 24 | | the member's annual full-time salary rate with the
same | 25 | | employer for the preceding year by more than 20% shall be | 26 | | excluded.
The exclusion shall not apply in any year in which |
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| 1 | | the member's creditable
earnings are less than 50% of the | 2 | | preceding year's mean salary for downstate
teachers as | 3 | | determined by the survey of school district salaries provided | 4 | | in
Section 2-3.103 of the School Code.
| 5 | | Notwithstanding any provision of this Article, for any | 6 | | person who is a member on the effective date of this amendatory | 7 | | Act of the 97th General Assembly, the annual final average | 8 | | compensation may not exceed $106,800, as automatically | 9 | | increased
by the lesser of 3% or one-half of the annual | 10 | | percentage increase in the consumer price index-u
for the 12 | 11 | | months ending with the September preceding each
November 1. For | 12 | | the purposes of this subsection (b), "consumer price index-u" | 13 | | means
the index published by the Bureau of Labor Statistics of | 14 | | the United States
Department of Labor that measures the average | 15 | | change in prices of goods and
services purchased by all urban | 16 | | consumers, United States city average, all
items, 1982-84 = | 17 | | 100. | 18 | | (c) In determining the amount of the retirement annuity | 19 | | under paragraph
(B) of this Section, a fractional year shall be | 20 | | granted proportional credit.
| 21 | | (d) The retirement annuity determined under paragraph (B) | 22 | | of this Section
shall be available only to members who render | 23 | | teaching service after July
1, 1947 for which member | 24 | | contributions are required, and to annuitants who
re-enter | 25 | | under the provisions of Section 16-150.
| 26 | | (e) The maximum retirement annuity provided under |
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| 1 | | paragraph (B) of this
Section shall be 75% of final average | 2 | | salary.
| 3 | | (f) A member retiring after the effective date of this | 4 | | amendatory Act
of 1998 shall receive a pension equal to 75% of | 5 | | final average salary if the
member is qualified to receive a | 6 | | retirement annuity equal to at least 74.6%
of final average | 7 | | salary under this Article or as proportional annuities under
| 8 | | Article 20 of this Code.
| 9 | | (Source: P.A. 94-4, eff. 6-1-05.)
| 10 | | (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
| 11 | | Sec. 16-152. Contributions by members.
| 12 | | (a) Each member shall make contributions for membership | 13 | | service to this
System as follows:
| 14 | | (1) Effective July 1, 1998, contributions of 7.50% of | 15 | | salary towards the
cost of the retirement annuity. Such | 16 | | contributions shall be deemed "normal
contributions".
| 17 | | (2) Effective July 1, 1969, contributions of 1/2 of 1% | 18 | | of salary toward
the cost of the automatic annual increase | 19 | | in retirement annuity provided
under Section 16-133.1.
| 20 | | (3) Effective July 24, 1959, contributions of 1% of | 21 | | salary towards the
cost of survivor benefits. Such | 22 | | contributions shall not be credited to
the individual | 23 | | account of the member and shall not be subject to refund
| 24 | | except as provided under Section 16-143.2.
| 25 | | (4) Effective July 1, 2005, contributions of 0.40% of |
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| 1 | | salary toward the cost of the early retirement without | 2 | | discount option provided under Section 16-133.2. This | 3 | | contribution shall cease upon termination of the early | 4 | | retirement without discount option as provided in Section | 5 | | 16-176.
| 6 | | (b) The minimum required contribution for any year of | 7 | | full-time
teaching service shall be $192.
| 8 | | (c) Contributions shall not be required of any annuitant | 9 | | receiving
a retirement annuity who is given employment as | 10 | | permitted under Section 16-118 or 16-150.1.
| 11 | | (d) A person who (i) was a member before July 1, 1998, (ii) | 12 | | retires with
more than 34 years of creditable service, and | 13 | | (iii) does not elect to qualify
for the augmented rate under | 14 | | Section 16-129.1 shall be entitled, at the time
of retirement, | 15 | | to receive a partial refund of contributions made under this
| 16 | | Section for service occurring after the later of June 30, 1998 | 17 | | or attainment
of 34 years of creditable service, in an amount | 18 | | equal to 1.00% of the salary
upon which those contributions | 19 | | were based.
| 20 | | (e) A member's contributions toward the cost of early | 21 | | retirement without discount made under item (a)(4) of this | 22 | | Section shall not be refunded if the member has elected early | 23 | | retirement without discount under Section 16-133.2 and has | 24 | | begun to receive a retirement annuity under this Article | 25 | | calculated in accordance with that election. Otherwise, a | 26 | | member's contributions toward the cost of early retirement |
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| 1 | | without discount made under item (a)(4) of this Section shall | 2 | | be refunded according to whichever one of the following | 3 | | circumstances occurs first: | 4 | | (1) The contributions shall be refunded to the member, | 5 | | without interest, within 120 days after the member's | 6 | | retirement annuity commences, if the member does not elect | 7 | | early retirement without discount under Section 16-133.2. | 8 | | (2) The contributions shall be included, without | 9 | | interest, in any refund claimed by the member under Section | 10 | | 16-151. | 11 | | (3) The contributions shall be refunded to the member's | 12 | | designated beneficiary (or if there is no beneficiary, to | 13 | | the member's estate), without interest, if the member dies | 14 | | without having begun to receive a retirement annuity under | 15 | | this Article. | 16 | | (4) The contributions shall be refunded to the member, | 17 | | without interest, within 120 days after the early | 18 | | retirement without discount option provided under Section | 19 | | 16-133.2 is terminated under Section 16-176.
| 20 | | (f) Notwithstanding any other provision of this Article, | 21 | | the required contribution of a participant who first becomes a | 22 | | participant on or after January 1, 2011 or who is a participant | 23 | | on the effective date of this amendatory Act of the 97th | 24 | | General Assembly shall not exceed the contribution that would | 25 | | be due under this Article if that participant's highest salary | 26 | | for annuity purposes were $106,800, plus any increases in that |
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| 1 | | amount under Section 16-133. | 2 | | (Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)
| 3 | | (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
| 4 | | Sec. 18-125. Retirement annuity amount.
| 5 | | (a) The annual retirement annuity for a participant who | 6 | | terminated
service as a judge prior to July 1, 1971 shall be | 7 | | based on the law in
effect at the time of termination of | 8 | | service.
| 9 | | (b) Except as provided in subsection (b-5), effective July | 10 | | 1, 1971, the retirement annuity for any participant
in service | 11 | | on or after such date shall be 3 1/2% of final average salary,
| 12 | | as defined in this Section, for each of the first 10 years of | 13 | | service, and
5% of such final average salary for each year of | 14 | | service on excess of 10.
| 15 | | For purposes of this Section, final average salary for a | 16 | | participant who first serves as a judge before August 10, 2009 | 17 | | (the effective date of Public Act 96-207) shall be:
| 18 | | (1) the average salary for the last 4 years of credited | 19 | | service as a
judge for a participant who terminates service | 20 | | before July 1, 1975.
| 21 | | (2) for a participant who terminates service after June | 22 | | 30, 1975
and before July 1, 1982, the salary on the last | 23 | | day of employment as a judge.
| 24 | | (3) for any participant who terminates service after | 25 | | June 30, 1982 and
before January 1, 1990, the average |
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| 1 | | salary for the final year of service as
a judge.
| 2 | | (4) for a participant who terminates service on or | 3 | | after January 1,
1990 but before the effective date of this | 4 | | amendatory Act of 1995, the
salary on the last day of | 5 | | employment as a judge.
| 6 | | (5) for a participant who terminates service on or | 7 | | after the effective
date of this amendatory Act of 1995, | 8 | | the salary on the last day of employment
as a judge, or the | 9 | | highest salary received by the participant for employment | 10 | | as
a judge in a position held by the participant for at | 11 | | least 4 consecutive years,
whichever is greater.
| 12 | | However, in the case of a participant who elects to | 13 | | discontinue contributions
as provided in subdivision (a)(2) of | 14 | | Section 18-133, the time of such
election shall be considered | 15 | | the last day of employment in the determination
of final | 16 | | average salary under this subsection.
| 17 | | For a participant who first serves as a judge on or after | 18 | | August 10, 2009 (the effective date of Public Act 96-207) and | 19 | | before January 1, 2011 (the effective date of Public Act | 20 | | 96-889), final average salary shall be the average monthly | 21 | | salary obtained by dividing the total salary of the participant | 22 | | during the period of: (1) the 48 consecutive months of service | 23 | | within the last 120 months of service in which the total | 24 | | compensation was the highest, or (2) the total period of | 25 | | service, if less than 48 months, by the number of months of | 26 | | service in that period. |
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| 1 | | The maximum retirement annuity for any participant shall be | 2 | | 85% of final
average salary.
| 3 | | (b-5) Notwithstanding any other provision of this Article, | 4 | | for a participant who first serves as a judge on or after | 5 | | January 1, 2011 (the effective date of Public Act 96-889), the | 6 | | annual
retirement annuity is 3% of the
participant's final | 7 | | average salary for each year of service. The maximum retirement
| 8 | | annuity payable shall be 60% of the participant's final average | 9 | | salary. | 10 | | For a participant who first serves as a judge on or after | 11 | | January 1, 2011 (the effective date of Public Act 96-889), | 12 | | final average salary shall be the average monthly salary | 13 | | obtained by dividing the total salary of the judge during the | 14 | | 96 consecutive months of service within the last 120 months of | 15 | | service in which the total salary was the highest by the number | 16 | | of months of service in that period; however, beginning January | 17 | | 1, 2011, the annual salary may not exceed $106,800, except that | 18 | | that amount shall annually thereafter be increased by the | 19 | | lesser of (i) 3% of that amount, including all previous | 20 | | adjustments, or (ii) the annual unadjusted percentage increase | 21 | | (but not less than zero) in the consumer price index-u
for the | 22 | | 12 months ending with the September preceding each November 1. | 23 | | Notwithstanding any provision of this Article, for any | 24 | | person who is a participant on the effective date of this | 25 | | amendatory Act of the 97th General Assembly, the annual final | 26 | | average salary may not exceed $106,800, as automatically |
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| 1 | | increased
by the lesser of 3% or one-half of the annual | 2 | | percentage increase in the consumer price index-u
for the 12 | 3 | | months ending with the September preceding each
November 1. | 4 | | "Consumer price index-u" means
the index published by the | 5 | | Bureau of Labor Statistics of the United States
Department of | 6 | | Labor that measures the average change in prices of goods and
| 7 | | services purchased by all urban consumers, United States city | 8 | | average, all
items, 1982-84 = 100. The new amount resulting | 9 | | from each annual adjustment
shall be determined by the Public | 10 | | Pension Division of the Department of Insurance and made | 11 | | available to the Board by November 1st of each year. | 12 | | (c) The retirement annuity for a participant who retires | 13 | | prior to age 60
with less than 28 years of service in the | 14 | | System shall be reduced 1/2 of 1%
for each month that the | 15 | | participant's age is under 60 years at the time the
annuity | 16 | | commences. However, for a participant who retires on or after | 17 | | the
effective date of this amendatory Act of the 91st General | 18 | | Assembly, the
percentage reduction in retirement annuity | 19 | | imposed under this subsection shall
be reduced by 5/12 of 1% | 20 | | for every month of service in this System in excess of
20 | 21 | | years, and therefore a participant with at least 26 years of | 22 | | service in this
System may retire at age 55 without any | 23 | | reduction in annuity.
| 24 | | The reduction in retirement annuity imposed by this | 25 | | subsection shall not
apply in the case of retirement on account | 26 | | of disability.
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| 1 | | (d) Notwithstanding any other provision of this Article, | 2 | | for a participant who first serves as a judge on or after | 3 | | January 1, 2011 (the effective date of Public Act 96-889) and | 4 | | who is retiring after attaining age 62, the retirement annuity | 5 | | shall be reduced by 1/2
of 1% for each month that the | 6 | | participant's age is under age 67 at the time the annuity | 7 | | commences. | 8 | | (Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11; | 9 | | 96-1000, eff. 7-2-10; 96-1490, eff. 1-1-11.)
| 10 | | (40 ILCS 5/18-133) (from Ch. 108 1/2, par. 18-133)
| 11 | | Sec. 18-133. Financing; employee contributions.
| 12 | | (a) Effective July 1, 1967, each participant is required to | 13 | | contribute
7 1/2% of each payment of salary toward the | 14 | | retirement annuity. Such
contributions shall continue during | 15 | | the entire time the participant is in
service, with the | 16 | | following exceptions:
| 17 | | (1) Contributions for the retirement annuity are not | 18 | | required on salary
received after 18 years of service by | 19 | | persons who were participants before
January 2, 1954.
| 20 | | (2) A participant who continues to serve as a judge | 21 | | after becoming
eligible to receive the maximum rate of | 22 | | annuity may elect, through a written
direction filed with | 23 | | the Board, to discontinue contributing to the System.
Any | 24 | | such option elected by a judge shall be irrevocable unless | 25 | | prior to
January 1, 2000, and while continuing to
serve as |
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| 1 | | judge, the judge (A) files with the Board a letter | 2 | | cancelling the
direction to discontinue contributing to | 3 | | the System and requesting that such
contributing resume, | 4 | | and (B) pays into the System an amount equal to the total
| 5 | | of the discontinued contributions plus interest thereon at | 6 | | 5% per annum.
Service credits earned in any other | 7 | | "participating system" as defined in
Article 20 of this | 8 | | Code shall be considered for purposes of determining a
| 9 | | judge's eligibility to discontinue contributions under | 10 | | this subdivision
(a)(2).
| 11 | | (3) A participant who (i) has attained age 60, (ii) | 12 | | continues to serve
as a judge after becoming eligible to | 13 | | receive the maximum rate of annuity,
and (iii) has not | 14 | | elected to discontinue contributing to the System under
| 15 | | subdivision (a)(2) of this Section (or has revoked any such | 16 | | election) may
elect, through a written direction filed with | 17 | | the Board, to make contributions
to the System based only | 18 | | on the amount of the increases in salary received by
the | 19 | | judge on or after the date of the election, rather than the | 20 | | total salary
received. If a judge who is making | 21 | | contributions to the System on the
effective date of this | 22 | | amendatory Act of the 91st General Assembly makes an
| 23 | | election to limit contributions under this subdivision | 24 | | (a)(3) within 90 days
after that effective date, the | 25 | | election shall be deemed to become
effective on that | 26 | | effective date and the judge shall be entitled to receive a
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| 1 | | refund of any excess contributions paid to the System | 2 | | during that 90-day
period; any other election under this | 3 | | subdivision (a)(3) becomes effective
on the first of the | 4 | | month following the date of the election. An election to
| 5 | | limit contributions under this subdivision (a)(3) is | 6 | | irrevocable. Service
credits earned in any other | 7 | | participating system as defined in Article 20 of
this Code | 8 | | shall be considered for purposes of determining a judge's | 9 | | eligibility
to make an election under this subdivision | 10 | | (a)(3).
| 11 | | (b) Beginning July 1, 1969, each participant is required to | 12 | | contribute
1% of each payment of salary towards the automatic | 13 | | increase in annuity
provided in Section 18-125.1. However, such | 14 | | contributions need not be made
by any participant who has | 15 | | elected prior to September 15, 1969, not to be
subject to the | 16 | | automatic increase in annuity provisions.
| 17 | | (c) Effective July 13, 1953, each married participant | 18 | | subject to the
survivor's annuity provisions is required to | 19 | | contribute 2 1/2% of each
payment of salary, whether or not he | 20 | | or she is required to make any other
contributions under this | 21 | | Section. Such contributions shall be made
concurrently with the | 22 | | contributions made for annuity purposes.
| 23 | | (d) Notwithstanding any other provision of this Article, | 24 | | the required contributions for a participant who first becomes | 25 | | a participant on or after January 1, 2011 or who is a | 26 | | participant on the effective date of this amendatory Act of the |
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| 1 | | 97th General Assembly shall not exceed the contributions that | 2 | | would be due under this Article if that participant's highest | 3 | | salary for annuity purposes were $106,800, plus any increase in | 4 | | that amount under Section 18-125. | 5 | | (Source: P.A. 96-1490, eff. 1-1-11.)
| 6 | | Section 99. Effective date. This Act takes effect July 1, | 7 | | 2011.
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