Full Text of HB3161 103rd General Assembly
HB3161enr 103RD GENERAL ASSEMBLY |
| | HB3161 Enrolled | | LRB103 30865 RPS 57378 b |
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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 | 5 | | changing Sections 8-137 and 8-137.1 as follows:
| 6 | | (40 ILCS 5/8-137)
(from Ch. 108 1/2, par. 8-137)
| 7 | | (Text of Section WITHOUT the changes made by P.A. 98-641, | 8 | | which has been held unconstitutional) | 9 | | Sec. 8-137. Automatic increase in annuity.
| 10 | | (a) An employee who retired or retires from service after | 11 | | December 31,
1959 and before January 1, 1987, having attained | 12 | | age 60 or more, shall,
in January of the year
after the year in | 13 | | which the first anniversary of retirement occurs, have
the | 14 | | amount of his then fixed and payable monthly annuity increased | 15 | | by 1
1/2%, and such first fixed annuity as granted at | 16 | | retirement increased by
a further 1 1/2% in January of each | 17 | | year thereafter. Beginning with
January of the year 1972, such | 18 | | increases shall be at the rate of 2% in
lieu of the aforesaid | 19 | | specified 1 1/2%, and beginning with January of the
year 1984 | 20 | | such increases shall be at the rate of 3%.
Beginning in January | 21 | | of 1999, such increases
shall be at the rate of 3% of the | 22 | | currently payable monthly annuity,
including any increases | 23 | | previously granted under this Article. An
employee who retires |
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| 1 | | on annuity after December 31, 1959 and before
January 1, 1987, | 2 | | but before age 60, shall receive such
increases beginning in | 3 | | January of the year after the year
in which he attains age 60.
| 4 | | An employee who retires from service on or after January | 5 | | 1, 1987 shall, upon
the first annuity payment date following | 6 | | the first anniversary of the date of
retirement, or upon the | 7 | | first annuity payment date following attainment of age
60, | 8 | | whichever occurs later, have his then fixed and payable | 9 | | monthly annuity
increased by 3%, and such annuity shall be | 10 | | increased by an additional 3% of the
original fixed annuity on | 11 | | the same date each year thereafter. Beginning in
January of | 12 | | 1999, such increases shall be at the rate of 3% of the | 13 | | currently
payable monthly annuity, including any increases | 14 | | previously granted under this
Article.
| 15 | | (a-5) Notwithstanding the provisions of subsection (a), | 16 | | upon the first
annuity payment date following (1) the third | 17 | | anniversary of retirement, (2)
the attainment of age 53, or | 18 | | (3) January 1, 2002, whichever
occurs latest,
the
monthly | 19 | | annuity of an employee who retires on annuity prior to the | 20 | | attainment
of age 60 and has not received an increase under | 21 | | subsection (a) shall
be
increased by 3%, and the annuity shall | 22 | | be increased by an additional
3% of the
current payable | 23 | | monthly annuity, including any
increases previously
granted
| 24 | | under this Article, on the same date each year thereafter. The | 25 | | increases
provided under this subsection are in lieu of the | 26 | | increases provided in
subsection (a).
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| 1 | | (a-6) Notwithstanding the provisions of subsections (a) | 2 | | and (a-5), for all
calendar years following the year in which | 3 | | this amendatory Act of the 93rd
General Assembly takes effect, | 4 | | an increase in annuity under this Section that
would otherwise | 5 | | take effect at any time during the year shall instead take
| 6 | | effect in January of that year.
| 7 | | (b) Subsections (a), (a-5), and (a-6) are not
applicable | 8 | | to an employee retiring
and receiving a term annuity, as | 9 | | herein defined, nor to any otherwise
qualified employee who | 10 | | retires before he makes employee contributions (at
the 1/2 of | 11 | | 1% rate as provided in this Act) for this additional
annuity | 12 | | for not less than the equivalent of one full year. Such
| 13 | | employee, however, shall make arrangement to pay to the fund a | 14 | | balance
of such 1/2 of 1% contributions, based on his final | 15 | | salary, as will
bring such 1/2 of 1% contributions, computed | 16 | | without interest, to the
equivalent of or completion of one | 17 | | year's contributions.
| 18 | | Beginning with January, 1960, each employee shall | 19 | | contribute by means of
salary deductions 1/2 of 1% of each | 20 | | salary payment, concurrently with
and in addition to the | 21 | | employee contributions otherwise made for annuity
purposes.
| 22 | | Each such additional contribution shall be credited to an | 23 | | account in
the prior service annuity reserve, to be used, | 24 | | together with city
contributions, to defray the cost of the | 25 | | specified annuity increments.
Any balance in such account at | 26 | | the beginning of each calendar year shall
be credited with |
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| 1 | | interest at the rate of 3% per annum.
| 2 | | Such additional employee contributions are not refundable, | 3 | | except to
an employee who withdraws and applies for refund | 4 | | under this Article, and
in cases where a term annuity becomes | 5 | | payable. In such cases his
contributions shall be refunded, | 6 | | without interest, and charged to such
account in the prior | 7 | | service annuity reserve.
| 8 | | (Source: P.A. 92-599, eff. 6-28-02; 92-609, eff.
7-1-02; | 9 | | 93-654, eff. 1-16-04.)
| 10 | | (40 ILCS 5/8-137.1) (from Ch. 108 1/2, par. 8-137.1)
| 11 | | (Text of Section WITHOUT the changes made by P.A. 98-641, | 12 | | which has been held unconstitutional) | 13 | | Sec. 8-137.1. Automatic increases in annuity for certain | 14 | | heretofore retired
participants.
A retired municipal employee | 15 | | who (a) is receiving annuity based on a
service credit of 20 or | 16 | | more years regardless of age at retirement or based
on a | 17 | | service credit of 15 or more years with retirement at age 55 or | 18 | | over,
and (b) does not qualify for the automatic increases in | 19 | | annuity provided
for in Section 8-137 of this Article, and (c) | 20 | | elects to make a contribution
to the Fund at a time and manner | 21 | | prescribed by the Retirement Board, of a
sum equal to 1% of the | 22 | | amount of final monthly salary times the number of
full years | 23 | | of service on which the annuity was based in those cases where
| 24 | | the annuity was computed on the money purchase formula and in | 25 | | those cases
in which the annuity was computed under the |
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| 1 | | minimum annuity formula
provisions of this Article a sum equal | 2 | | to 1% of the average monthly salary
on which the annuity was | 3 | | based times such number of full years of service,
shall have | 4 | | his original fixed and payable monthly amount of annuity
| 5 | | increased in January of the year following the year in which he | 6 | | attains the
age of 65 years, if such age of 65 years is | 7 | | attained in the year 1969 or
later, by an amount equal to | 8 | | 1-1/2%, and by an equal additional 1-1/2% in
January of each | 9 | | year thereafter. Beginning with January of the year 1972,
such | 10 | | increases shall be at the rate of 2% in lieu of the aforesaid
| 11 | | specified 1 1/2%, and beginning January of the year 1984 such | 12 | | increases
shall be at the rate of 3%.
Beginning in January of | 13 | | 1999, such increases shall be at the rate of
3% of the | 14 | | currently payable monthly annuity, including any increases | 15 | | previously
granted under this Article.
| 16 | | Whenever the retired municipal employee receiving annuity | 17 | | has attained
the age of 66 or more in 1969, he shall have such | 18 | | annuity increased in
January, 1970 by an amount equal to | 19 | | 1-1/2% multiplied by the number equal
to the number of months | 20 | | of January elapsing from and including January of
the year | 21 | | immediately following the year he attained the age of 65 if
| 22 | | retired at or before age 65, or from and including January of | 23 | | the year
immediately following the year of retirement if | 24 | | retired at an age greater
than 65, to and including January, | 25 | | 1970, and by an equal additional 1-1/2%
in January of each year | 26 | | thereafter. Beginning with January of the year
1972, such |
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| 1 | | increases shall be at the rate of 2% in lieu of the aforesaid
| 2 | | specified 1 1/2%, and beginning January of the year 1984 such | 3 | | increases
shall be at the rate of 3%.
Beginning in January of | 4 | | 1999, such increases shall be at the rate of
3% of the | 5 | | currently payable monthly annuity, including any increases | 6 | | previously
granted under this Article.
| 7 | | To defray the annual cost of such increases, the annual | 8 | | interest income
of the Fund, accruing from investments held by | 9 | | the Fund, exclusive of gains
or losses on sales or exchanges of | 10 | | assets during the year, over and above
4% a year, shall be used | 11 | | to the extent necessary and available to finance
the cost of | 12 | | such increases for the following year, and such amount shall | 13 | | be
transferred as of the end of each year, beginning with the | 14 | | year 1969, to a
Fund account designated as the Supplementary | 15 | | Payment Reserve from the
Investment and Interest Reserve set | 16 | | forth in Section 8-221. The sums
contributed by annuitants as | 17 | | provided for in this Section shall also be
placed in the | 18 | | aforesaid Supplementary Payment Reserve and shall be applied
| 19 | | and used for the purposes of such Fund account, together with | 20 | | the aforesaid
interest.
| 21 | | In the event the monies in the Supplementary Payment | 22 | | Reserve in any year
arising from: (1) the available interest | 23 | | income as defined hereinbefore and
accruing in the preceding | 24 | | year above 4% a year and (2) the contributions by
retired | 25 | | persons, as set forth hereinbefore, are insufficient to make | 26 | | the
total payments to all persons estimated to be entitled to |
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| 1 | | the annuity
increases specified hereinbefore, then (3) any | 2 | | interest earnings over 4% a
year beginning with the year 1969 | 3 | | which were not previously used to finance
such increases and | 4 | | which were transferred to the Prior Service Annuity
Reserve | 5 | | may be used to the extent necessary and available to provide
| 6 | | sufficient funds to finance such increases for the current | 7 | | year, and such
sums shall be transferred from the Prior | 8 | | Service Annuity Reserve.
| 9 | | In the event the total monies available in the | 10 | | Supplementary Payment
Reserve from the preceding indicated | 11 | | sources are insufficient to make the
total payments to all | 12 | | persons entitled to such increases for the year, a
| 13 | | proportionate amount computed as the ratio of the monies | 14 | | available to the
total of the total payments for that year | 15 | | shall be paid to each person for
that year.
| 16 | | The Fund shall be obligated for the payment of the | 17 | | increases in annuity
as provided for in this Section only to | 18 | | the extent that the assets for such
purpose, as specified | 19 | | herein, are available.
| 20 | | (Source: P.A. 90-766, eff. 8-14-98.) | 21 | | (40 ILCS 5/8-174.2 rep.) | 22 | | Section 10. The Illinois Pension Code is amended by | 23 | | repealing Section 8-174.2.
| 24 | | Section 99. Effective date. This Act takes effect upon | 25 | | becoming law.
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