Full Text of SB2533 101st General Assembly
SB2533 101ST GENERAL ASSEMBLY |
| | 101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020 SB2533 Introduced 1/28/2020, by Sen. Cristina Castro SYNOPSIS AS INTRODUCED: |
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Amends the General Provisions and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Except for persons who elected to establish certain alternative credits, moves provisions concerning Tier 2 members of IMRF from the General Provisions Article to the IMRF Article. Defines Tier 1 regular employee and Tier 2 regular employee. Provides that the increase to the retirement annuity of a Tier 1 regular employee shall be computed from the effective date of the retirement annuity, the first increase being 0.25% (instead of .167%) of the monthly amount times the number of months from the effective date to January 1. Provides that if the employee was a Tier 1 regular employee, the surviving spouse annuity shall be increased by an amount equal to (i) 3% of the original amount thereof if the deceased employee was receiving a retirement annuity at the time of his or her death; otherwise (ii) 0.25% (instead of 0.167%) of the original amount thereof for each complete month that has elapsed since the date the annuity began. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement.
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| | FISCAL NOTE ACT MAY APPLY | PENSION IMPACT NOTE ACT MAY APPLY | STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT |
| | 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 1-160, 7-114, 7-116, 7-141, 7-141.1, 7-142, 7-144, and | 6 | | 7-156 and by adding Sections 7-109.4 and 7-109.5 as follows:
| 7 | | (40 ILCS 5/1-160)
| 8 | | Sec. 1-160. Provisions applicable to new hires. | 9 | | (a) The provisions of this Section apply to a person who, | 10 | | on or after January 1, 2011, first becomes a member or a | 11 | | participant under any reciprocal retirement system or pension | 12 | | fund established under this Code, other than a retirement | 13 | | system or pension fund established under Article 2, 3, 4, 5, 6, | 14 | | 7, 15 , or 18 of this Code, notwithstanding any other provision | 15 | | of this Code to the contrary, but do not apply to any | 16 | | self-managed plan established under this Code , to any person | 17 | | with respect to service as a sheriff's law enforcement employee | 18 | | under Article 7, or to any participant of the retirement plan | 19 | | established under Section 22-101 ; except that this Section | 20 | | applies to a person who elected to establish alternative | 21 | | credits by electing in writing after January 1, 2011, but | 22 | | before August 8, 2011, under Section 7-145.1 of this Code . | 23 | | Notwithstanding anything to the contrary in this Section, for |
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| 1 | | purposes of this Section, a person who is a Tier 1 regular | 2 | | employee as defined in Section 7-109.4 of this Code or who | 3 | | participated in a retirement system under Article 15 prior to | 4 | | January 1, 2011 shall be deemed a person who first became a | 5 | | member or participant prior to January 1, 2011 under any | 6 | | retirement system or pension fund subject to this Section. The | 7 | | changes made to this Section by Public Act 98-596 are a | 8 | | clarification of existing law and are intended to be | 9 | | retroactive to January 1, 2011 (the effective date of Public | 10 | | Act 96-889), notwithstanding the provisions of Section 1-103.1 | 11 | | of this Code. | 12 | | This Section does not apply to a person who first becomes a | 13 | | noncovered employee under Article 14 on or after the | 14 | | implementation date of the plan created under Section 1-161 for | 15 | | that Article, unless that person elects under subsection (b) of | 16 | | Section 1-161 to instead receive the benefits provided under | 17 | | this Section and the applicable provisions of that Article. | 18 | | This Section does not apply to a person who first becomes a | 19 | | member or participant under Article 16 on or after the | 20 | | implementation date of the plan created under Section 1-161 for | 21 | | that Article, unless that person elects under subsection (b) of | 22 | | Section 1-161 to instead receive the benefits provided under | 23 | | this Section and the applicable provisions of that Article. | 24 | | This Section does not apply to a person who elects under | 25 | | subsection (c-5) of Section 1-161 to receive the benefits under | 26 | | Section 1-161. |
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| 1 | | This Section does not apply to a person who first becomes a | 2 | | member or participant of an affected pension fund on or after 6 | 3 | | months after the resolution or ordinance date, as defined in | 4 | | Section 1-162, unless that person elects under subsection (c) | 5 | | of Section 1-162 to receive the benefits provided under this | 6 | | Section and the applicable provisions of the Article under | 7 | | which he or she is a member or participant. | 8 | | (b) "Final average salary" means the average monthly (or | 9 | | annual) salary obtained by dividing the total salary or | 10 | | earnings calculated under the Article applicable to the member | 11 | | or participant during the 96 consecutive months (or 8 | 12 | | consecutive years) of service within the last 120 months (or 10 | 13 | | years) of service in which the total salary or earnings | 14 | | calculated under the applicable Article was the highest by the | 15 | | number of months (or years) of service in that period. For the | 16 | | purposes of a person who first becomes a member or participant | 17 | | of any retirement system or pension fund to which this Section | 18 | | applies on or after January 1, 2011, in this Code, "final | 19 | | average salary" shall be substituted for the following: | 20 | | (1) (Blank). In Article 7 (except for service as | 21 | | sheriff's law enforcement employees), "final rate of | 22 | | earnings". | 23 | | (2) In Articles 8, 9, 10, 11, and 12, "highest average | 24 | | annual salary for any 4 consecutive years within the last | 25 | | 10 years of service immediately preceding the date of | 26 | | withdrawal". |
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| 1 | | (3) In Article 13, "average final salary". | 2 | | (4) In Article 14, "final average compensation". | 3 | | (5) In Article 17, "average salary". | 4 | | (6) In Section 22-207, "wages or salary received by him | 5 | | at the date of retirement or discharge". | 6 | | (b-5) Beginning on January 1, 2011, for all purposes under | 7 | | this Code (including without limitation the calculation of | 8 | | benefits and employee contributions), the annual earnings, | 9 | | salary, or wages (based on the plan year) of a member or | 10 | | participant to whom this Section applies shall not exceed | 11 | | $106,800; however, that amount shall annually thereafter be | 12 | | increased by the lesser of (i) 3% of that amount, including all | 13 | | previous adjustments, or (ii) one-half the annual unadjusted | 14 | | percentage increase (but not less than zero) in the consumer | 15 | | price index-u
for the 12 months ending with the September | 16 | | preceding each November 1, including all previous adjustments. | 17 | | For the purposes of this Section, "consumer price index-u" | 18 | | means
the index published by the Bureau of Labor Statistics of | 19 | | the United States
Department of Labor that measures the average | 20 | | change in prices of goods and
services purchased by all urban | 21 | | consumers, United States city average, all
items, 1982-84 = | 22 | | 100. The new amount resulting from each annual adjustment
shall | 23 | | be determined by the Public Pension Division of the Department | 24 | | of Insurance and made available to the boards of the retirement | 25 | | systems and pension funds by November 1 of each year. | 26 | | (c) A member or participant is entitled to a retirement
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| 1 | | annuity upon written application if he or she has attained age | 2 | | 67 (beginning January 1, 2015, age 65 with respect to service | 3 | | under Article 12 of this Code that is subject to this Section) | 4 | | and has at least 10 years of service credit and is otherwise | 5 | | eligible under the requirements of the applicable Article. | 6 | | A member or participant who has attained age 62 (beginning | 7 | | January 1, 2015, age 60 with respect to service under Article | 8 | | 12 of this Code that is subject to this Section) and has at | 9 | | least 10 years of service credit and is otherwise eligible | 10 | | under the requirements of the applicable Article may elect to | 11 | | receive the lower retirement annuity provided
in subsection (d) | 12 | | of this Section. | 13 | | (c-5) A person who first becomes a member or a participant | 14 | | subject to this Section on or after July 6, 2017 (the effective | 15 | | date of Public Act 100-23), notwithstanding any other provision | 16 | | of this Code to the contrary, is entitled to a retirement | 17 | | annuity under Article 8 or Article 11 upon written application | 18 | | if he or she has attained age 65 and has at least 10 years of | 19 | | service credit and is otherwise eligible under the requirements | 20 | | of Article 8 or Article 11 of this Code, whichever is | 21 | | applicable. | 22 | | (d) The retirement annuity of a member or participant who | 23 | | is retiring after attaining age 62 (beginning January 1, 2015, | 24 | | age 60 with respect to service under Article 12 of this Code | 25 | | that is subject to this Section) with at least 10 years of | 26 | | service credit shall be reduced by one-half
of 1% for each full |
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| 1 | | month that the member's age is under age 67 (beginning January | 2 | | 1, 2015, age 65 with respect to service under Article 12 of | 3 | | this Code that is subject to this Section). | 4 | | (d-5) The retirement annuity payable under Article 8 or | 5 | | Article 11 to an eligible person subject to subsection (c-5) of | 6 | | this Section who is retiring at age 60 with at least 10 years | 7 | | of service credit shall be reduced by one-half of 1% for each | 8 | | full month that the member's age is under age 65. | 9 | | (d-10) Each person who first became a member or participant | 10 | | under Article 8 or Article 11 of this Code on or after January | 11 | | 1, 2011 and prior to the effective date of this amendatory Act | 12 | | of the 100th General Assembly shall make an irrevocable | 13 | | election either: | 14 | | (i) to be eligible for the reduced retirement age | 15 | | provided in subsections (c-5)
and (d-5) of this Section, | 16 | | the eligibility for which is conditioned upon the member or | 17 | | participant agreeing to the increases in employee | 18 | | contributions for age and service annuities provided in | 19 | | subsection (a-5) of Section 8-174 of this Code (for service | 20 | | under Article 8) or subsection (a-5) of Section 11-170 of | 21 | | this Code (for service under Article 11); or | 22 | | (ii) to not agree to item (i) of this subsection | 23 | | (d-10), in which case the member or participant shall | 24 | | continue to be subject to the retirement age provisions in | 25 | | subsections (c) and (d) of this Section and the employee | 26 | | contributions for age and service annuity as provided in |
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| 1 | | subsection (a) of Section 8-174 of this Code (for service | 2 | | under Article 8) or subsection (a) of Section 11-170 of | 3 | | this Code (for service under Article 11). | 4 | | The election provided for in this subsection shall be made | 5 | | between October 1, 2017 and November 15, 2017. A person subject | 6 | | to this subsection who makes the required election shall remain | 7 | | bound by that election. A person subject to this subsection who | 8 | | fails for any reason to make the required election within the | 9 | | time specified in this subsection shall be deemed to have made | 10 | | the election under item (ii). | 11 | | (e) Any retirement annuity or supplemental annuity shall be | 12 | | subject to annual increases on the January 1 occurring either | 13 | | on or after the attainment of age 67 (beginning January 1, | 14 | | 2015, age 65 with respect to service under Article 12 of this | 15 | | Code that is subject to this Section and beginning on the | 16 | | effective date of this amendatory Act of the 100th General | 17 | | Assembly, age 65 with respect to service under Article 8 or | 18 | | Article 11 for eligible persons who: (i) are subject to | 19 | | subsection (c-5) of this Section; or (ii) made the election | 20 | | under item (i) of subsection (d-10) of this Section) or the | 21 | | first anniversary of the annuity start date, whichever is | 22 | | later. Each annual increase shall be calculated at 3% or | 23 | | one-half the annual unadjusted percentage increase (but not | 24 | | less than zero) in the consumer price index-u for the 12 months | 25 | | ending with the September preceding each November 1, whichever | 26 | | is less, of the originally granted retirement annuity. If the |
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| 1 | | annual unadjusted percentage change in the consumer price | 2 | | index-u for the 12 months ending with the September preceding | 3 | | each November 1 is zero or there is a decrease, then the | 4 | | annuity shall not be increased. | 5 | | For the purposes of Section 1-103.1 of this Code, the | 6 | | changes made to this Section by this amendatory Act of the | 7 | | 100th General Assembly are applicable without regard to whether | 8 | | the employee was in active service on or after the effective | 9 | | date of this amendatory Act of the 100th General Assembly. | 10 | | (f) The initial survivor's or widow's annuity of an | 11 | | otherwise eligible survivor or widow of a retired member or | 12 | | participant who first became a member or participant on or | 13 | | after January 1, 2011 shall be in the amount of 66 2/3% of the | 14 | | retired member's or participant's retirement annuity at the | 15 | | date of death. In the case of the death of a member or | 16 | | participant who has not retired and who first became a member | 17 | | or participant on or after January 1, 2011, eligibility for a | 18 | | survivor's or widow's annuity shall be determined by the | 19 | | applicable Article of this Code. The initial benefit shall be | 20 | | 66 2/3% of the earned annuity without a reduction due to age. A | 21 | | child's annuity of an otherwise eligible child shall be in the | 22 | | amount prescribed under each Article if applicable. Any | 23 | | survivor's or widow's annuity shall be increased (1) on each | 24 | | January 1 occurring on or after the commencement of the annuity | 25 | | if
the deceased member died while receiving a retirement | 26 | | annuity or (2) in
other cases, on each January 1 occurring |
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| 1 | | after the first anniversary
of the commencement of the annuity. | 2 | | Each annual increase shall be calculated at 3% or one-half the | 3 | | annual unadjusted percentage increase (but not less than zero) | 4 | | in the consumer price index-u for the 12 months ending with the | 5 | | September preceding each November 1, whichever is less, of the | 6 | | originally granted survivor's annuity. If the annual | 7 | | unadjusted percentage change in the consumer price index-u for | 8 | | the 12 months ending with the September preceding each November | 9 | | 1 is zero or there is a decrease, then the annuity shall not be | 10 | | increased. | 11 | | (g) The benefits in Section 14-110 apply only if the person | 12 | | is a State policeman, a fire fighter in the fire protection | 13 | | service of a department, a conservation police officer, an | 14 | | investigator for the Secretary of State, an arson investigator, | 15 | | a Commerce Commission police officer, investigator for the | 16 | | Department of Revenue or the
Illinois Gaming Board, a security | 17 | | employee of the Department of Corrections or the Department of | 18 | | Juvenile Justice, or a security employee of the Department of | 19 | | Innovation and Technology, as those terms are defined in | 20 | | subsection (b) and subsection (c) of Section 14-110. A person | 21 | | who meets the requirements of this Section is entitled to an | 22 | | annuity calculated under the provisions of Section 14-110, in | 23 | | lieu of the regular or minimum retirement annuity, only if the | 24 | | person has withdrawn from service with not less than 20
years | 25 | | of eligible creditable service and has attained age 60, | 26 | | regardless of whether
the attainment of age 60 occurs while the |
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| 1 | | person is
still in service. | 2 | | (h) If a person who first becomes a member or a participant | 3 | | of a retirement system or pension fund subject to this Section | 4 | | on or after January 1, 2011 is receiving a retirement annuity | 5 | | or retirement pension under that system or fund and becomes a | 6 | | member or participant under any other system or fund created by | 7 | | this Code and is employed on a full-time basis, except for | 8 | | those members or participants exempted from the provisions of | 9 | | this Section under subsection (a) of this Section, then the | 10 | | person's retirement annuity or retirement pension under that | 11 | | system or fund shall be suspended during that employment. Upon | 12 | | termination of that employment, the person's retirement | 13 | | annuity or retirement pension payments shall resume and be | 14 | | recalculated if recalculation is provided for under the | 15 | | applicable Article of this Code. | 16 | | If a person who first becomes a member of a retirement | 17 | | system or pension fund subject to this Section on or after | 18 | | January 1, 2012 and is receiving a retirement annuity or | 19 | | retirement pension under that system or fund and accepts on a | 20 | | contractual basis a position to provide services to a | 21 | | governmental entity from which he or she has retired, then that | 22 | | person's annuity or retirement pension earned as an active | 23 | | employee of the employer shall be suspended during that | 24 | | contractual service. A person receiving an annuity or | 25 | | retirement pension under this Code shall notify the pension | 26 | | fund or retirement system from which he or she is receiving an |
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| 1 | | annuity or retirement pension, as well as his or her | 2 | | contractual employer, of his or her retirement status before | 3 | | accepting contractual employment. A person who fails to submit | 4 | | such notification shall be guilty of a Class A misdemeanor and | 5 | | required to pay a fine of $1,000. Upon termination of that | 6 | | contractual employment, the person's retirement annuity or | 7 | | retirement pension payments shall resume and, if appropriate, | 8 | | be recalculated under the applicable provisions of this Code. | 9 | | (i) (Blank). | 10 | | (j) In the case of a conflict between the provisions of | 11 | | this Section and any other provision of this Code, the | 12 | | provisions of this Section shall control.
| 13 | | (Source: P.A. 100-23, eff. 7-6-17; 100-201, eff. 8-18-17; | 14 | | 100-563, eff. 12-8-17; 100-611, eff. 7-20-18; 100-1166, eff. | 15 | | 1-4-19; 101-610, eff. 1-1-20.) | 16 | | (40 ILCS 5/7-109.4 new) | 17 | | Sec. 7-109.4. Tier 1 regular employee. "Tier 1 regular | 18 | | employee" means a participant or an annuitant under this | 19 | | Article who first became a participant or member before January | 20 | | 1, 2011 under any retirement system or pension fund under this | 21 | | Code, other than a retirement system or pension fund | 22 | | established under Articles 2, 3, 4, 5, 6, or 18 or in any | 23 | | self-managed plan established under this Code, or the | 24 | | retirement plan established under Section 22-101. | 25 | | "Tier 1 regular employee" includes a person who received a |
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| 1 | | separation benefit but is otherwise qualified under this | 2 | | Section and subsequently becomes a participating employee on or | 3 | | after January 1, 2011. | 4 | | "Tier 1 regular employee" includes a former participating | 5 | | employee who received a separation benefit under Section 7-167 | 6 | | for service earned prior to January 1, 2011 who returns to a | 7 | | qualifying position after January 1, 2011. | 8 | | "Tier 1 regular employee" includes a participating | 9 | | employee who has omitted service as defined in Section 7-111.5 | 10 | | that includes any period prior to January 1, 2011 only if he or | 11 | | she establishes sufficient service credit under item (12) of | 12 | | subsection (a) of Section 7-139 to include service prior to | 13 | | January 1, 2011. | 14 | | Notwithstanding anything contrary in this Section, "Tier 1 | 15 | | regular employee" does not include a participant or annuitant | 16 | | who is eligible to have his or her annuity calculated under | 17 | | Section 7-142.1 or a person who elected to establish | 18 | | alternative credits under Section 7-145.1. | 19 | | (40 ILCS 5/7-109.5 new) | 20 | | Sec. 7-109.5. Tier 2 regular employee. "Tier 2 regular | 21 | | employee" means a person who first becomes a participant under | 22 | | this Article on or after January 1, 2011 and is not a Tier 1 | 23 | | regular employee. | 24 | | Notwithstanding anything contrary in this Section, "Tier 2 | 25 | | regular employee" does not include a participant or annuitant |
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| 1 | | who is eligible to have his or her annuity calculated under | 2 | | Section 7-142.1 or a person who elected to establish | 3 | | alternative credits by electing in writing after January 1, | 4 | | 2011, but before August 8, 2011, under Section 7-145.1 of this | 5 | | Code.
| 6 | | (40 ILCS 5/7-114) (from Ch. 108 1/2, par. 7-114)
| 7 | | Sec. 7-114. Earnings. "Earnings":
| 8 | | (a) An amount to be determined by the board, equal to the | 9 | | sum of:
| 10 | | 1. The total amount of money paid to an employee for | 11 | | personal
services or official duties as an employee (except | 12 | | those employed as
independent contractors) paid out of the | 13 | | general fund, or out of any
special funds controlled by the | 14 | | municipality, or by any instrumentality
thereof, or | 15 | | participating instrumentality, including compensation, | 16 | | fees,
allowances (but not including amounts associated | 17 | | with a vehicle allowance payable to an employee who first | 18 | | becomes a participating employee on or after the effective | 19 | | date of this amendatory Act of the 100th General Assembly), | 20 | | or other emolument paid for official duties (but not
| 21 | | including automobile maintenance, travel expense, or | 22 | | reimbursements for
expenditures incurred in the | 23 | | performance of duties) and, for fee
offices, the fees or | 24 | | earnings of the offices to the extent such fees are
paid | 25 | | out of funds controlled by the municipality, or |
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| 1 | | instrumentality or
participating instrumentality; and
| 2 | | 2. The money value, as determined by rules prescribed | 3 | | by the
governing body of the municipality, or | 4 | | instrumentality thereof, of any
board, lodging, fuel, | 5 | | laundry, and other allowances provided an employee
in lieu | 6 | | of money.
| 7 | | (b) For purposes of determining benefits payable under this | 8 | | fund
payments to a person who is engaged in an independently | 9 | | established
trade, occupation, profession or business and who | 10 | | is paid for his
service on a basis other than a monthly or | 11 | | other regular salary, are not
earnings.
| 12 | | (c) If a disabled participating employee is eligible to | 13 | | receive Workers'
Compensation for an accidental injury and the | 14 | | participating municipality or
instrumentality which employed | 15 | | the participating employee when injured
continues to pay the | 16 | | participating employee regular salary or other
compensation or | 17 | | pays the employee an amount in excess of the Workers'
| 18 | | Compensation amount, then earnings shall be deemed to be the | 19 | | total payments,
including an amount equal to the Workers' | 20 | | Compensation payments. These
payments shall be subject to | 21 | | employee contributions and allocated as if paid to
the | 22 | | participating employee when the regular payroll amounts would | 23 | | have been
paid if the participating employee had continued | 24 | | working, and creditable
service shall be awarded for this | 25 | | period.
| 26 | | (d) If an elected official who is a participating employee |
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| 1 | | becomes disabled
but does not resign and is not removed from | 2 | | office, then earnings shall include
all salary payments made | 3 | | for the remainder of that term of office and the
official shall | 4 | | be awarded creditable service for the term of office.
| 5 | | (e) If a participating employee is paid pursuant to "An Act | 6 | | to provide for
the continuation of compensation for law | 7 | | enforcement officers, correctional
officers and firemen who | 8 | | suffer disabling injury in the line of duty", approved
| 9 | | September 6, 1973, as amended, the payments shall be deemed | 10 | | earnings, and the
participating employee shall be awarded | 11 | | creditable service for this period.
| 12 | | (f) Additional compensation received by a person while | 13 | | serving as a
supervisor of assessments, assessor, deputy | 14 | | assessor or member of a board of
review from the State of | 15 | | Illinois pursuant to Section 4-10 or 4-15 of the
Property Tax | 16 | | Code shall not be
earnings for purposes of this Article and | 17 | | shall not be included in the
contribution formula or | 18 | | calculation of benefits for such person pursuant to
this | 19 | | Article.
| 20 | | (g) Notwithstanding any other provision of this Article, | 21 | | calendar year earnings for Tier 2 regular employees to whom | 22 | | this Section applies shall not exceed the amount determined by | 23 | | the Public Pension Division of the Department of Insurance as | 24 | | required in this subsection; however, that amount shall | 25 | | annually thereafter be increased by the lesser of (i) 3% of | 26 | | that amount, including all previous adjustments, or (ii) |
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| 1 | | one-half the annual unadjusted percentage increase (but not | 2 | | less than zero) in the consumer price index-u for the 12 months | 3 | | ending with the September preceding each November 1, including | 4 | | all previous adjustments. | 5 | | For the purposes of this Section, "consumer price index-u" | 6 | | means the index published by the Bureau of Labor Statistics of | 7 | | the United States Department of Labor that measures the average | 8 | | change in prices of goods and services purchased by all urban | 9 | | consumers, United States city average, all items, 1982-84 = | 10 | | 100. The new amount resulting from each annual adjustment shall | 11 | | be determined by the Public Pension Division of the Department | 12 | | of Insurance and made available to the Fund by November 1 of | 13 | | each year. | 14 | | (Source: P.A. 100-411, eff. 8-25-17.)
| 15 | | (40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
| 16 | | (Text of Section WITHOUT the changes made by P.A. 98-599, | 17 | | which has been
held unconstitutional)
| 18 | | Sec. 7-116. "Final rate of earnings":
| 19 | | (a) For retirement and survivor annuities, the monthly | 20 | | earnings obtained
by dividing the total earnings received by | 21 | | the employee during the period of
either (1) for Tier 1 regular | 22 | | employees, the 48 consecutive months of service within the last | 23 | | 120 months of
service in which his total earnings were the | 24 | | highest , (2) for Tier 2 regular employees, the 96 consecutive
| 25 | | months of service within the last 120 months of service in
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| 1 | | which his total earnings were the highest, or (3) or (2) the
| 2 | | employee's total period of service, by the number of months
of | 3 | | service in such period.
| 4 | | (b) For death benefits, the higher of the rate determined | 5 | | under
paragraph (a) of this Section or total earnings received | 6 | | in the last 12 months
of service divided by twelve. If the | 7 | | deceased employee has less than 12 months
of service, the | 8 | | monthly final rate shall be the monthly rate of pay the
| 9 | | employee was receiving when he began service.
| 10 | | (c) For disability benefits, the total earnings of a | 11 | | participating
employee in the last 12 calendar months of | 12 | | service prior to the date he
becomes disabled divided by 12.
| 13 | | (d) In computing the final rate of earnings: (1) the | 14 | | earnings rate for
all periods of prior service shall be | 15 | | considered equal to the average
earnings rate for the last 3 | 16 | | calendar years of prior service for
which creditable service is | 17 | | received under Section 7-139 or, if there is less than 3 years | 18 | | of
creditable prior service, the average for the total prior | 19 | | service period
for which creditable service is received under | 20 | | Section 7-139; (2) for out
of state service and authorized
| 21 | | leave, the earnings rate shall be the rate upon which service | 22 | | credits are
granted; (3) periods of military leave shall not be | 23 | | considered; (4) the
earnings rate for all periods of disability | 24 | | shall be considered equal to
the rate of earnings upon which | 25 | | the employee's disability benefits are
computed for such | 26 | | periods; (5) the earnings to be considered for each of
the |
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| 1 | | final three months of the final earnings period for persons who | 2 | | first became participants before January 1, 2012 and the | 3 | | earnings to be considered for each of the final 24 months for | 4 | | participants who first become participants on or after January | 5 | | 1, 2012 shall not exceed 125%
of the highest earnings of any | 6 | | other month in the final earnings period;
and (6) the annual | 7 | | amount of final rate of earnings shall be the monthly
amount | 8 | | multiplied by the number of months of service normally required | 9 | | by
the position in a year.
| 10 | | (Source: P.A. 97-609, eff. 1-1-12.)
| 11 | | (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
| 12 | | Sec. 7-141. Retirement annuities - Conditions. Retirement | 13 | | annuities shall be payable as hereinafter set forth:
| 14 | | (a) A participating employee who, regardless of cause, is | 15 | | separated
from the service of all participating municipalities | 16 | | and
instrumentalities thereof and participating | 17 | | instrumentalities shall be
entitled to a retirement annuity | 18 | | provided:
| 19 | | 1. He is at least age 55 if he is a Tier 1 regular | 20 | | employee, he is age 62 if he is a Tier 2 regular employee , | 21 | | or , in the case of a person who is eligible
to have his | 22 | | annuity calculated under Section 7-142.1, he is at least | 23 | | age 50;
| 24 | | 2. He is not entitled to receive earnings for | 25 | | employment in a position requiring him, or entitling him to |
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| 1 | | elect, to be a participating employee;
| 2 | | 3. The amount of his annuity, before the application of | 3 | | paragraph (b) of
Section 7-142 is at least $10 per month;
| 4 | | 4. If he first became a participating employee after | 5 | | December 31,
1961 and is a Tier 1 regular employee , he has | 6 | | at least 8 years of service , or, if he is a Tier 2 regular | 7 | | member, he has at least 10 years of service . This service | 8 | | requirement shall not
apply to any participating employee, | 9 | | regardless of participation date, if the
General Assembly | 10 | | terminates the Fund.
| 11 | | (b) Retirement annuities shall be payable:
| 12 | | 1. As provided in Section 7-119;
| 13 | | 2. Except as provided in item 3, upon receipt by the | 14 | | fund of a written
application. The effective date may be | 15 | | not more than one
year prior to the date of the receipt by | 16 | | the fund of the application;
| 17 | | 3. Upon attainment of age 70 1/2 if the member (i) is | 18 | | no longer in
service,
and (ii) is otherwise entitled to an | 19 | | annuity under this Article;
| 20 | | 4. To the beneficiary of the deceased annuitant for the | 21 | | unpaid amount
accrued to date of death, if any.
| 22 | | (Source: P.A. 97-328, eff. 8-12-11; 97-609, eff. 1-1-12.)
| 23 | | (40 ILCS 5/7-141.1)
| 24 | | Sec. 7-141.1. Early retirement incentive.
| 25 | | (a) The General Assembly finds and declares that:
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| 1 | | (1) Units of local government across the State have | 2 | | been functioning
under a financial crisis.
| 3 | | (2) This financial crisis is expected to continue.
| 4 | | (3) Units of local government must depend on additional | 5 | | sources of
revenue and, when those sources are not | 6 | | forthcoming, must establish
cost-saving programs.
| 7 | | (4) An early retirement incentive designed | 8 | | specifically to target
highly-paid senior employees could | 9 | | result in significant annual cost
savings.
| 10 | | (5) The early retirement incentive should be made | 11 | | available only to
those units of local government that | 12 | | determine that an early retirement
incentive is in their | 13 | | best interest.
| 14 | | (6) A unit of local government adopting a program of | 15 | | early retirement
incentives under this Section is | 16 | | encouraged to implement personnel procedures
to prohibit, | 17 | | for at least 5 years, the rehiring (whether on payroll or | 18 | | by
independent contract) of employees who receive early | 19 | | retirement incentives.
| 20 | | (7) A unit of local government adopting a program of | 21 | | early retirement
incentives under this Section is also | 22 | | encouraged to replace as few of the
participating employees | 23 | | as possible and to hire replacement employees for
salaries | 24 | | totaling no more than 80% of the total salaries formerly | 25 | | paid to the
employees who participate in the early | 26 | | retirement program.
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| 1 | | It is the primary purpose of this Section to encourage | 2 | | units of local
government that can realize true cost savings, | 3 | | or have determined that an early
retirement program is in their | 4 | | best interest, to implement an early retirement
program.
| 5 | | (b) Until June 27, 1997 ( the effective date of Public Act | 6 | | 90-32) this amendatory Act of 1997 , this
Section does not apply | 7 | | to any employer that is a city, village, or incorporated
town, | 8 | | nor to the employees of any such employer. Beginning on June | 9 | | 27, 1997 ( the effective
date of Public Act 90-32) this | 10 | | amendatory Act of 1997 , any employer under this Article, | 11 | | including
an employer that is a city, village, or incorporated | 12 | | town, may establish an
early retirement incentive program for | 13 | | its employees under this Section. The
decision of a city, | 14 | | village, or incorporated town to consider or establish an
early | 15 | | retirement program is at the sole discretion of that city, | 16 | | village, or
incorporated town, and nothing in Public Act 90-32 | 17 | | this amendatory Act of 1997 limits or
otherwise diminishes this | 18 | | discretion. Nothing contained in this Section shall
be | 19 | | construed to require a city, village, or incorporated town to | 20 | | establish an
early retirement program and no city, village, or | 21 | | incorporated town may be
compelled to implement such a program.
| 22 | | The benefits provided in this Section are available only to | 23 | | members
employed by a participating employer that has filed | 24 | | with the Board of the
Fund a resolution or ordinance expressly | 25 | | providing for the creation of an
early retirement incentive | 26 | | program under this Section for its employees and
specifying the |
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| 1 | | effective date of the early retirement incentive program.
| 2 | | Subject to the limitation in subsection (h), an employer may | 3 | | adopt a resolution
or ordinance providing a program of early | 4 | | retirement incentives under this
Section at any time.
| 5 | | The resolution or ordinance shall be in substantially the | 6 | | following form:
| 7 | | RESOLUTION (ORDINANCE) NO. ....
| 8 | | A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
| 9 | | RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
| 10 | | IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
| 11 | | WHEREAS, Section 7-141.1 of the Illinois Pension Code | 12 | | provides that a
participating employer may elect to adopt an | 13 | | early retirement
incentive program offered by the Illinois | 14 | | Municipal Retirement Fund by
adopting a resolution or | 15 | | ordinance; and
| 16 | | WHEREAS, The goal of adopting an early retirement program | 17 | | is
to realize a substantial savings in personnel costs by | 18 | | offering early
retirement incentives to employees who have | 19 | | accumulated many years of
service credit; and
| 20 | | WHEREAS, Implementation of the early retirement program | 21 | | will provide a
budgeting tool to aid in controlling payroll | 22 | | costs; and
| 23 | | WHEREAS, The (name of governing body) has determined that | 24 | | the adoption of an
early retirement incentive program is in the | 25 | | best interests of the (name of
participating employer); |
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| 1 | | therefore be it
| 2 | | RESOLVED (ORDAINED) by the (name of governing body) of | 3 | | (name of
participating employer) that:
| 4 | | (1) The (name of participating employer) does hereby adopt | 5 | | the Illinois
Municipal Retirement Fund early retirement | 6 | | incentive program as provided in
Section 7-141.1 of the | 7 | | Illinois Pension Code. The early retirement incentive
program | 8 | | shall take effect on (date).
| 9 | | (2) In order to help achieve a true cost savings, a person | 10 | | who retires under
the early retirement incentive program shall | 11 | | lose those incentives if he or she
later accepts employment | 12 | | with any IMRF employer in a position for which
participation in | 13 | | IMRF is required or is elected by the employee.
| 14 | | (3) In order to utilize an early retirement incentive as a | 15 | | budgeting
tool, the (name of participating employer) will use | 16 | | its best efforts either
to limit the number of employees who | 17 | | replace the employees who retire under
the early retirement | 18 | | program or to limit the salaries paid to the employees who
| 19 | | replace the employees who retire under the early retirement | 20 | | program.
| 21 | | (4) The effective date of each employee's retirement under | 22 | | this early
retirement program shall be set by (name of | 23 | | employer) and shall be no
earlier than the effective date of | 24 | | the program and no later than one year after
that effective | 25 | | date; except that the employee may require that the retirement
| 26 | | date set by the employer be no later than the June 30 next |
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| 1 | | occurring after the
effective date of the program and no | 2 | | earlier than the date upon which the
employee qualifies for | 3 | | retirement.
| 4 | | (5) To be eligible for the early retirement incentive under | 5 | | this Section,
the employee must have attained age 50 and have | 6 | | at least 20 years of creditable
service by his or her | 7 | | retirement date.
| 8 | | (6) The (clerk or secretary) shall promptly file a | 9 | | certified copy of
this resolution (ordinance) with the Board of | 10 | | Trustees of the Illinois
Municipal Retirement Fund.
| 11 | | CERTIFICATION
| 12 | | I, (name), the (clerk or secretary) of the (name of | 13 | | participating
employer) of the County of (name), State of | 14 | | Illinois, do hereby certify
that I am the keeper of the books | 15 | | and records of the (name of employer)
and that the foregoing is | 16 | | a true and correct copy of a resolution
(ordinance) duly | 17 | | adopted by the (governing body) at a meeting duly convened
and | 18 | | held on (date).
| 19 | | SEAL
| 20 | | (Signature of clerk or secretary)
| 21 | | (c) To be eligible for the benefits provided under an early | 22 | | retirement
incentive program adopted under this Section, a | 23 | | member must:
| 24 | | (1) be a participating employee of this Fund who, on | 25 | | the effective date of
the program, (i) is in active payroll |
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| 1 | | status as an employee of a participating
employer that has | 2 | | filed the required ordinance or resolution with the Board,
| 3 | | (ii) is on layoff status from such a position with a right | 4 | | of re-employment or
recall to service, (iii) is on a leave | 5 | | of absence from such a position, or (iv)
is on disability | 6 | | but has not been receiving benefits under Section 7-146 or
| 7 | | 7-150 for a period of more than 2 years from the date of | 8 | | application;
| 9 | | (2) have never previously received a retirement | 10 | | annuity under
this Article or under the Retirement Systems | 11 | | Reciprocal Act using service
credit established under this | 12 | | Article;
| 13 | | (3) (blank);
| 14 | | (4) have at least 20 years of creditable service in the | 15 | | Fund by the date
of retirement, without the use of any | 16 | | creditable service established under this
Section;
| 17 | | (5) have attained age 50 by the date of retirement if | 18 | | he or she is a Tier 1 regular employee or age 57 if he or | 19 | | she is a Tier 2 regular employee , without the use of any
| 20 | | age enhancement received under this Section; and
| 21 | | (6) be eligible to receive a retirement annuity under | 22 | | this Article by the
date of retirement, for which purpose | 23 | | the age enhancement and creditable
service established | 24 | | under this Section may be considered.
| 25 | | (d) The employer shall determine the retirement date for | 26 | | each employee
participating in the early retirement program |
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| 1 | | adopted under this Section. The
retirement date shall be no | 2 | | earlier than the effective date of the program and
no later | 3 | | than one year after that effective date, except that the | 4 | | employee may
require that the retirement date set by the | 5 | | employer be no later than the June
30 next occurring after the | 6 | | effective date of the program and no earlier than
the date upon | 7 | | which the employee qualifies for retirement. The employer shall
| 8 | | give each employee participating in the early retirement | 9 | | program at least 30
days written notice of the employee's | 10 | | designated retirement date, unless the
employee waives this | 11 | | notice requirement.
| 12 | | (e) An eligible person may establish up to 5 years of | 13 | | creditable service
under this Section. In addition, for each | 14 | | period of creditable service
established under this Section, a | 15 | | person shall have his or her age at
retirement deemed enhanced | 16 | | by an equivalent period.
| 17 | | The creditable service established under this Section may | 18 | | be used for all
purposes under this Article and the Retirement | 19 | | Systems Reciprocal Act,
except for the computation of final | 20 | | rate of earnings and the determination
of earnings, salary, or | 21 | | compensation under this or any other Article of the
Code.
| 22 | | The age enhancement established under this Section may be | 23 | | used for all
purposes under this Article (including calculation | 24 | | of the reduction imposed
under subdivision (a)1b(iv) of Section | 25 | | 7-142), except for purposes of a
reversionary annuity under | 26 | | Section 7-145 and any distributions required because
of age. |
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| 1 | | The age enhancement established under this Section may be used | 2 | | in
calculating a proportionate annuity payable by this Fund | 3 | | under the Retirement
Systems Reciprocal Act, but shall not be | 4 | | used in determining benefits payable
under other Articles of | 5 | | this Code under the Retirement Systems Reciprocal Act.
| 6 | | (f) For all creditable service established under this | 7 | | Section, the
member must pay to the Fund an employee | 8 | | contribution consisting of the total employee contribution | 9 | | rate in effect at the time the member purchases the service for | 10 | | the plan in which the member was participating with the | 11 | | employer at that time multiplied by the member's highest annual | 12 | | salary rate used in the determination of the
final rate of | 13 | | earnings for retirement annuity purposes for each year of
| 14 | | creditable service granted under this Section.
Contributions | 15 | | for fractions of a year of service shall be prorated.
Any | 16 | | amounts that are disregarded in determining the final rate of | 17 | | earnings
under subdivision (d)(5) of Section 7-116 (the 125% | 18 | | rule) shall also be
disregarded in determining the required | 19 | | contribution under this subsection (f).
| 20 | | The employee contribution shall be paid to the Fund as | 21 | | follows: If the
member is entitled to a lump sum payment for | 22 | | accumulated vacation, sick leave,
or personal leave upon | 23 | | withdrawal from service, the employer shall deduct the
employee | 24 | | contribution from that lump sum and pay the deducted amount | 25 | | directly
to the Fund. If there is no such lump sum payment or | 26 | | the required employee
contribution exceeds the net amount of |
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| 1 | | the lump sum payment, then the remaining
amount due, at the | 2 | | option of the employee, may either be paid to the Fund
before | 3 | | the annuity commences or deducted from the retirement annuity | 4 | | in 24
equal monthly installments.
| 5 | | (g) An annuitant who has received any age enhancement or | 6 | | creditable service
under this Section and thereafter accepts | 7 | | employment with or enters into a
personal services contract | 8 | | with an employer under this Article thereby forfeits
that age | 9 | | enhancement and creditable service; except that this | 10 | | restriction
does not apply to (1) service in an elective | 11 | | office, so long as the annuitant
does not participate in this | 12 | | Fund with respect to that office, (2) a person appointed as an | 13 | | officer under subsection (f) of Section 3-109 of this Code, and | 14 | | (3) a person appointed as an auxiliary police officer pursuant | 15 | | to Section 3.1-30-5 of the Illinois Municipal Code. A person
| 16 | | forfeiting early retirement incentives under this subsection | 17 | | (i) must repay to
the Fund that portion of the retirement | 18 | | annuity already received which is
attributable to the early | 19 | | retirement incentives that are being forfeited, (ii)
shall not | 20 | | be eligible to participate in any future early retirement | 21 | | program
adopted under this Section, and (iii) is entitled to a | 22 | | refund of the employee
contribution paid under subsection (f). | 23 | | The Board shall deduct the required
repayment from the refund | 24 | | and may impose a reasonable payment schedule for
repaying the | 25 | | amount, if any, by which the required repayment exceeds the | 26 | | refund
amount.
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| 1 | | (h) The additional unfunded liability accruing as a result | 2 | | of the adoption
of a program of early retirement incentives | 3 | | under this Section by an employer
shall be amortized over a | 4 | | period of 10 years beginning on January 1 of the
second | 5 | | calendar year following the calendar year in which the latest | 6 | | date for
beginning to receive a retirement annuity under the | 7 | | program (as determined by
the employer under subsection (d) of | 8 | | this Section) occurs; except that the
employer may provide for | 9 | | a shorter amortization period (of no less than 5
years) by | 10 | | adopting an ordinance or resolution specifying the length of | 11 | | the
amortization period and submitting a certified copy of the | 12 | | ordinance or
resolution to the Fund no later than 6 months | 13 | | after the effective date of the
program. An employer, at its | 14 | | discretion, may accelerate payments to the Fund.
| 15 | | An employer may provide more than one early retirement | 16 | | incentive program
for its employees under this Section. | 17 | | However, an employer that has provided
an early retirement | 18 | | incentive program for its employees under this Section may
not | 19 | | provide another early retirement incentive program under this | 20 | | Section until the liability arising from the earlier program | 21 | | has been fully paid to
the Fund.
| 22 | | (Source: P.A. 99-382, eff. 8-17-15.)
| 23 | | (40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142) | 24 | | Sec. 7-142. Retirement annuities - Amount. | 25 | | (a) The amount of a retirement annuity shall be the sum of |
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| 1 | | the
following, determined in accordance with the actuarial | 2 | | tables in effect at
the time of the grant of the annuity: | 3 | | 1. For Tier 1 regular employees with 8 or more years of | 4 | | service or for Tier 2 regular employees , an annuity
| 5 | | computed pursuant to subparagraphs a or b of this | 6 | | subparagraph 1,
whichever is the higher, and for employees | 7 | | with less than 8 or 10 years of
service , respectively, the | 8 | | annuity computed pursuant to subparagraph a: | 9 | | a. The monthly annuity which can be provided from | 10 | | the total
accumulated normal, municipality and prior | 11 | | service credits, as of the
attained age of the employee | 12 | | on the date the annuity begins provided
that such | 13 | | annuity shall not exceed 75% of the final rate of | 14 | | earnings of
the employee. | 15 | | b. (i) The monthly annuity amount determined as | 16 | | follows by
multiplying (a) 1 2/3% for annuitants with | 17 | | not more than 15 years or (b)
1 2/3% for the first 15 | 18 | | years and 2% for each year in excess of 15 years
for | 19 | | annuitants with more than 15 years by the number of | 20 | | years plus
fractional years, prorated on a basis of | 21 | | months, of creditable service
and multiply the product | 22 | | thereof by the employee's final rate of earnings. | 23 | | (ii) For the sole purpose of computing the formula | 24 | | (and not for the
purposes of the limitations | 25 | | hereinafter stated) $125 shall be considered
the final | 26 | | rate of earnings in all cases where the final rate of |
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| 1 | | earnings
is less than such amount. | 2 | | (iii) The monthly annuity computed in accordance | 3 | | with this
subparagraph b, shall not exceed an amount | 4 | | equal to 75% of the final
rate of earnings. | 5 | | (iv) For employees who have less than 35 years of | 6 | | service, the
annuity computed in accordance with this | 7 | | subparagraph b (as reduced by
application of | 8 | | subparagraph (iii)
above) shall be reduced by 0.25% | 9 | | thereof (0.5% if service was terminated
before January | 10 | | 1, 1988 or if the employee is a Tier 2 regular | 11 | | employee ) for each month or fraction thereof (1) that | 12 | | the
employee's age is less than 60 years for Tier 1 | 13 | | regular employees , or (2) that the employee's age is | 14 | | less than 67 years for Tier 2 regular employees, or (3) | 15 | | if the employee has at least
30 years of service | 16 | | credit, that the employee's service credit is less than
| 17 | | 35 years, whichever is less, on the date the annuity | 18 | | begins. | 19 | | 2. The annuity which can be provided from the total | 20 | | accumulated
additional credits as of the attained age of | 21 | | the employee on the date
the annuity begins. | 22 | | (b) If payment of an annuity begins prior to the earliest | 23 | | age at
which the employee will become eligible for an old age | 24 | | insurance benefit
under the Federal Social Security Act, he may | 25 | | elect that the annuity
payments from this fund shall exceed | 26 | | those payable after his attaining
such age by an amount, |
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| 1 | | computed as determined by rules of the Board, but
not in excess | 2 | | of his estimated Social Security Benefit, determined as
of the | 3 | | effective date of the annuity, provided that in no case shall | 4 | | the
total annuity payments made by this fund exceed in | 5 | | actuarial value the
annuity which would have been payable had | 6 | | no such election been made. | 7 | | (c) The retirement annuity shall be increased each year by | 8 | | 2%, not
compounded, of the monthly amount of annuity, taking | 9 | | into consideration
any adjustment under paragraph (b) of this | 10 | | Section. This increase shall
be effective each January 1 and | 11 | | computed from the effective date of the
retirement annuity, the | 12 | | first increase being .167% of the monthly amount
times the | 13 | | number of months from the effective date to January 1. | 14 | | Beginning
January 1, 1984 and each January 1 thereafter, the | 15 | | retirement annuity of a Tier 1 regular employee shall be | 16 | | increased
by 3% each year, not compounded. This increase shall | 17 | | be computed from the effective date of the retirement annuity, | 18 | | the first increase being 0.25% of the monthly amount times the | 19 | | number of months from the effective date to January 1. This | 20 | | increase shall not be applicable to
annuitants who are not in | 21 | | service on or after September 8, 1971. | 22 | | A retirement annuity of a Tier 2 regular employee shall | 23 | | receive annual increases on the January 1 occurring either on | 24 | | or after the attainment of age 67 or the first anniversary of | 25 | | the annuity start date, whichever is later. Each annual | 26 | | increase shall be calculated at the lesser of 3% or one-half |
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| 1 | | the annual unadjusted percentage increase (but not less than | 2 | | zero) in the consumer price index-u for the 12 months ending | 3 | | with the September preceding each November 1 of the originally | 4 | | granted retirement annuity. If the annual unadjusted | 5 | | percentage change in the consumer price index-u for the 12 | 6 | | months ending with the September preceding each November 1 is | 7 | | zero or there is a decrease, then the annuity shall not be | 8 | | increased. | 9 | | (d) Any elected county officer who was entitled to receive | 10 | | a stipend from the State on or after July 1, 2009 and on or | 11 | | before June 30, 2010 may establish earnings credit for the | 12 | | amount of stipend not received, if the elected county official | 13 | | applies in writing to the fund within 6 months after the | 14 | | effective date of this amendatory Act of the 96th General | 15 | | Assembly and pays to the fund an amount equal to (i) employee | 16 | | contributions on the amount of stipend not received, (ii) | 17 | | employer contributions determined by the Board equal to the | 18 | | employer's normal cost of the benefit on the amount of stipend | 19 | | not received, plus (iii) interest on items (i) and (ii) at the | 20 | | actuarially assumed rate. | 21 | | (Source: P.A. 96-961, eff. 7-2-10.)
| 22 | | (40 ILCS 5/7-144) (from Ch. 108 1/2, par. 7-144)
| 23 | | Sec. 7-144. Retirement annuities - suspended during | 24 | | employment.
| 25 | | (a) If any person
receiving any annuity again becomes an |
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| 1 | | employee
and receives earnings from employment in a position | 2 | | requiring him, or entitling him to elect, to
become a | 3 | | participating employee, then the annuity payable to such | 4 | | employee
shall be suspended as of the 1st day of the month | 5 | | coincidental with or
next following the date upon which such | 6 | | person becomes such an employee, unless the person is | 7 | | authorized under subsection (b) of Section 7-137.1 of this Code | 8 | | to continue receiving a retirement annuity during that period.
| 9 | | Upon proper qualification of the participating employee | 10 | | payment of such
annuity may be resumed on the 1st day of the | 11 | | month following such
qualification and upon proper application | 12 | | therefor. The participating
employee in such case shall be | 13 | | entitled to a supplemental annuity
arising from service and | 14 | | credits earned subsequent to such re-entry as a
participating | 15 | | employee.
| 16 | | Notwithstanding any other provision of this Article, an | 17 | | annuitant shall be considered a participating employee if he or | 18 | | she returns to work as an employee with a participating | 19 | | employer and works more than 599 hours annually (or 999 hours | 20 | | annually with a participating employer that has adopted a | 21 | | resolution pursuant to subsection (e) of Section 7-137 of this | 22 | | Code). Each of these annual periods shall commence on the month | 23 | | and day upon which the annuitant is first employed with the | 24 | | participating employer following the effective date of the | 25 | | annuity. | 26 | | (a-5) If any annuitant under this Article must be |
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| 1 | | considered a participating employee per the provisions of | 2 | | subsection (a) of this Section, and the participating | 3 | | municipality or participating instrumentality that employs or | 4 | | re-employs that annuitant knowingly fails to notify the Board | 5 | | to suspend the annuity, the participating municipality or | 6 | | participating instrumentality may be required to reimburse the | 7 | | Fund for an amount up to one-half of the total of any annuity | 8 | | payments made to the annuitant after the date the annuity | 9 | | should have been suspended, as determined by the Board. In no | 10 | | case shall the total amount repaid by the annuitant plus any | 11 | | amount reimbursed by the employer to the Fund be more than the | 12 | | total of all annuity payments made to the annuitant after the | 13 | | date the annuity should have been suspended. This subsection | 14 | | shall not apply if the annuitant returned to work for the | 15 | | employer for less than 12 months. | 16 | | The Fund shall notify all annuitants that they must notify | 17 | | the Fund immediately if they return to work for any | 18 | | participating employer. The notification by the Fund shall | 19 | | occur upon retirement and no less than annually thereafter in a | 20 | | format determined by the Fund. The Fund shall also develop and | 21 | | maintain a system to track annuitants who have returned to work | 22 | | and notify the participating employer and annuitant at least | 23 | | annually of the limitations on returning to work under this | 24 | | Section. | 25 | | (b) Supplemental annuities to persons who return to service | 26 | | for less
than 48 months shall be computed under the provisions |
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| 1 | | of Sections 7-141,
7-142 and 7-143. In determining whether an | 2 | | employee is eligible for an
annuity which requires a minimum | 3 | | period of service, his entire period of
service shall be taken | 4 | | into consideration but the supplemental annuity
shall be based | 5 | | on earnings and service in the supplemental period only.
The | 6 | | effective date of the suspended and supplemental annuity for | 7 | | the
purpose of increases after retirement shall be considered | 8 | | to be the
effective date of the suspended annuity.
| 9 | | (c) Supplemental annuities to persons who return to service | 10 | | for 48
months or more shall be a monthly amount determined as | 11 | | follows:
| 12 | | (1) An amount shall be computed under subparagraph b of | 13 | | paragraph
(1) of subsection (a) of Section 7-142, | 14 | | considering all of the service
credits of the employee;
| 15 | | (2) The actuarial value in monthly payments for life of | 16 | | the annuity
payments made before suspension shall be | 17 | | determined and subtracted from
the amount determined in (1) | 18 | | above;
| 19 | | (3) The monthly amount of the suspended annuity, with | 20 | | any applicable
increases after retirement computed from | 21 | | the effective date to the date
of reinstatement, shall be | 22 | | subtracted from the amount determined in (2)
above and the | 23 | | remainder shall be the amount of the supplemental annuity
| 24 | | provided that this amount shall not be less than the amount | 25 | | computed under
subsection (b) of this Section.
| 26 | | (4) The suspended annuity shall be reinstated at an |
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| 1 | | amount including
any increases after retirement from the | 2 | | effective date to date of
reinstatement.
| 3 | | (5) The effective date of the combined suspended and | 4 | | supplemental
annuities for the purposes of increases after | 5 | | retirement shall be
considered to be the effective date of | 6 | | the supplemental annuity.
| 7 | | (d) If a Tier 2 regular employee becomes a member or | 8 | | participant under any other system or fund created by this Code | 9 | | and is employed on a full-time basis, except for those members | 10 | | or participants exempted from the provisions of subsection (a) | 11 | | of Section 1-160 of this Code (other than a participating | 12 | | employee under this Article), then the person's retirement | 13 | | annuity shall be suspended during that employment. Upon | 14 | | termination of that employment, the person's retirement | 15 | | annuity shall resume and be recalculated as required by this | 16 | | Section. | 17 | | (e) If a Tier 2 regular employee first began participation | 18 | | on or after January 1, 2012 and is receiving a retirement | 19 | | annuity and accepts on a contractual basis a position to | 20 | | provide services to a governmental entity from which he or she | 21 | | has retired, then that person's annuity or retirement pension | 22 | | shall be suspended during that contractual service, | 23 | | notwithstanding the provisions of any other Section in this | 24 | | Article. Such annuitant shall notify the Fund, as well as his | 25 | | or her contractual employer, of his or her retirement status | 26 | | before accepting contractual employment. A person who fails to |
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| 1 | | submit such notification shall be guilty of a Class A | 2 | | misdemeanor and required to pay a fine of $1,000. Upon | 3 | | termination of that contractual employment, the person's | 4 | | retirement annuity shall resume and be recalculated as required | 5 | | by this Section. | 6 | | (Source: P.A. 98-389, eff. 8-16-13; 99-745, eff. 8-5-16.)
| 7 | | (40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156)
| 8 | | Sec. 7-156. Surviving spouse annuities - amount.
| 9 | | (a) The amount of surviving spouse annuity shall be:
| 10 | | 1. Upon the death of an employee annuitant or such person | 11 | | entitled, upon
application, to a retirement annuity at date of | 12 | | death, (i) an amount equal
to 1/2 50% for a Tier 1 regular | 13 | | employee or 66 2/3% for a Tier 2 regular employee of the | 14 | | retirement annuity which was or would
have been payable | 15 | | exclusive of the amount so payable which was provided from
| 16 | | additional credits, and disregarding any election made under | 17 | | paragraph (b) of
Section 7-142, plus (ii) an annuity which | 18 | | could be provided at the then
attained age of the surviving | 19 | | spouse and under actuarial tables then in effect,
from the | 20 | | excess of the additional credits, (excluding any such credits | 21 | | used to
create a reversionary annuity) used to provide the | 22 | | annuity granted pursuant to
paragraph (a) (2) of Section 7-142 | 23 | | of this article over the total annuity
payments made pursuant | 24 | | thereto.
| 25 | | 2. Upon the death of a participating employee on or after |
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| 1 | | attainment of
age 55, an amount equal to 1/2 50% for a Tier 1 | 2 | | regular employee or 66 2/3% for a Tier 2 regular employee of | 3 | | the retirement annuity
which he could have had as of the date | 4 | | of death had he then retired and applied
for annuity, exclusive | 5 | | of the portion thereof which could have been provided
from | 6 | | additional credits, and disregarding paragraph (b) of Section | 7 | | 7-142,
plus an amount equal to the annuity which could be | 8 | | provided from the total
of his accumulated additional credits | 9 | | at date of death, on the basis of the
attained age of the | 10 | | surviving spouse on such date.
| 11 | | 3. Upon the death of a participating employee before age | 12 | | 55, an amount equal
to 1/2 50% for a Tier 1 regular employee or | 13 | | 66 2/3% for a Tier 2 regular employee of the retirement annuity | 14 | | which he could have had
as of his attained age on the date of | 15 | | death, had he then retired and applied
for annuity, and the | 16 | | provisions of this Article that no such annuity shall
begin | 17 | | until the employee has attained at least age 55 were not | 18 | | applicable,
exclusive of the portion thereof which could have | 19 | | been provided from
additional credits and disregarding | 20 | | paragraph (b) of Section 7-142, plus an
amount equal to the | 21 | | annuity which could be provided from the total of his
| 22 | | accumulated additional credits at date of death, on the basis | 23 | | of the
attained age of the surviving spouse on such date.
| 24 | | In the case of the surviving spouse of a person who dies | 25 | | before June 1, 2006 ( the
effective date of Public Act 94-712) | 26 | | this amendatory Act of the 94th General Assembly , if
the |
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| 1 | | surviving spouse is more than 5 years younger than the | 2 | | deceased,
that portion of the annuity which is not based on | 3 | | additional credits shall
be reduced in the ratio of the value | 4 | | of a life annuity of $1 per year at an
age of 5 years less than | 5 | | the attained age of the deceased, at the earlier
of the date of | 6 | | the death or the date his retirement annuity begins, to the
| 7 | | value of a life annuity of $1 per year at the attained age of | 8 | | the surviving
spouse on such date, according to actuarial | 9 | | tables approved by the Board.
This reduction does not apply to | 10 | | the surviving spouse of a person who dies
on or after June 1, | 11 | | 2006 ( the effective date of Public Act 94-712) this amendatory | 12 | | Act of the 94th General
Assembly .
| 13 | | In computing the amount of a surviving spouse annuity, | 14 | | incremental increases
of retirement annuities to the date of | 15 | | death of the employee annuitant shall be
considered.
| 16 | | (b) If the employee was a Tier 1 regular employee, each | 17 | | Each surviving spouse annuity payable on January 1, 1988 shall | 18 | | be
increased on that date by 3% of the original amount of the | 19 | | annuity. Each
surviving spouse annuity that begins after | 20 | | January 1, 1988 shall be
increased on the January 1 next | 21 | | occurring after the annuity begins, by an
amount equal to (i) | 22 | | 3% of the original amount thereof if the deceased
employee was | 23 | | receiving a retirement annuity at the time of his death; | 24 | | otherwise
(ii) 0.25% 0.167% of the original amount thereof for | 25 | | each complete
month which has elapsed since the date the | 26 | | annuity began.
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| 1 | | On each January 1 after the date of the initial increase | 2 | | under this
subsection, each surviving spouse annuity shall be | 3 | | increased by 3% of the
originally granted amount of the | 4 | | annuity.
| 5 | | (c) If the participating employee was a Tier 2 regular | 6 | | employee, each surviving spouse annuity shall be increased (1) | 7 | | on each January 1 occurring on or after the commencement of the | 8 | | annuity if the deceased member died while receiving a | 9 | | retirement annuity or (2) in other cases, on each January 1 | 10 | | occurring after the first anniversary of the commencement of | 11 | | the annuity. Such annual increase shall be calculated at 3% or | 12 | | one-half the annual unadjusted percentage increase (but not | 13 | | less than zero) in the consumer price index-u for the 12 months | 14 | | ending with the September preceding each November 1, whichever | 15 | | is less, of the originally granted surviving spouse annuity. If | 16 | | the annual unadjusted percentage change in the consumer price | 17 | | index-u for the 12 months ending with the September preceding | 18 | | each November 1 is zero or there is a decrease, then the | 19 | | annuity shall not be increased. | 20 | | (Source: P.A. 94-712, eff. 6-1-06 .)
| 21 | | Section 90. The State Mandates Act is amended by adding | 22 | | Section 8.44 as follows: | 23 | | (30 ILCS 805/8.44 new) | 24 | | Sec. 8.44. Exempt mandate. Notwithstanding Sections 6 and 8 |
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| 1 | | of this Act, no reimbursement by the State is required for the | 2 | | implementation of any mandate created by this amendatory Act of | 3 | | the 101st General Assembly.
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| 1 | |
INDEX
| 2 | |
Statutes amended in order of appearance
| | 3 | | 40 ILCS 5/1-160 | | | 4 | | 40 ILCS 5/7-109.4 new | | | 5 | | 40 ILCS 5/7-109.5 new | | | 6 | | 40 ILCS 5/7-114 | from Ch. 108 1/2, par. 7-114 | | 7 | | 40 ILCS 5/7-116 | from Ch. 108 1/2, par. 7-116 | | 8 | | 40 ILCS 5/7-141 | from Ch. 108 1/2, par. 7-141 | | 9 | | 40 ILCS 5/7-141.1 | | | 10 | | 40 ILCS 5/7-142 | from Ch. 108 1/2, par. 7-142 | | 11 | | 40 ILCS 5/7-144 | from Ch. 108 1/2, par. 7-144 | | 12 | | 40 ILCS 5/7-156 | from Ch. 108 1/2, par. 7-156 | | 13 | | 30 ILCS 805/8.44 new | |
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