Full Text of SB3630 97th General Assembly
SB3630 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 SB3630 Introduced 2/10/2012, by Sen. Kwame Raoul SYNOPSIS AS INTRODUCED: |
|
40 ILCS 5/9-134 | from Ch. 108 1/2, par. 9-134 |
40 ILCS 5/9-160 | from Ch. 108 1/2, par. 9-160 |
|
Amends the Cook County Article of the Illinois Pension Code. Provides that a county employee with 20 or more years of service, who first became a participant on or after January 1, 2011 and whose entire
disability benefit credit period expires before attainment of age 62, may qualify for certain annuities. Effective immediately.
|
| |
| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
|
| | | SB3630 | | LRB097 19617 EFG 64871 b |
|
| 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 9-134 and 9-160 as follows:
| 6 | | (40 ILCS 5/9-134) (from Ch. 108 1/2, par. 9-134)
| 7 | | Sec. 9-134. Minimum annuity - Additional provisions.
| 8 | | (a) An employee who withdraws after July 1, 1957 at age 60 | 9 | | or more with
20 or more years of service, for whom the amount | 10 | | of age and service and
prior service annuity combined is less | 11 | | than the amount stated in this
Section from the date of | 12 | | withdrawal, instead of all annuities otherwise
provided in this | 13 | | Article, is entitled to receive an annuity for life of an
| 14 | | amount equal to 1 2/3% for each year of service, of his highest | 15 | | average
annual salary for any 5 consecutive years within the | 16 | | last 10 years of
service immediately preceding the date of | 17 | | withdrawal; provided that in the
case of any employee who | 18 | | withdraws on or after July 1, 1971, such employee
age 60 or | 19 | | over with 20 or more years of service, or who withdraws on or
| 20 | | after January 1, 1982 and on or after attainment of age 65 with | 21 | | 10 or more
years of service, shall instead receive an annuity | 22 | | for life equal to 1.67%
for each of the first 10 years of | 23 | | service; 1.90% for each of the next 10
years of service; 2.10% |
| | | SB3630 | - 2 - | LRB097 19617 EFG 64871 b |
|
| 1 | | for each year of service in excess of 20 but not
exceeding 30; | 2 | | and 2.30% for each year of service in excess of 30, based on
| 3 | | the highest average annual salary for any 4 consecutive years | 4 | | within the
last 10 years of service immediately preceding the | 5 | | date of withdrawal.
| 6 | | An employee who withdraws after July 1, 1957, but prior to | 7 | | January 1,
1988, with 20 or more years of service, before age | 8 | | 60 is entitled to
annuity, to begin not earlier than age 55, if | 9 | | under such age at withdrawal,
as computed in the last preceding | 10 | | paragraph, reduced 1/2 of 1% for each
full month or fractional | 11 | | part thereof that his attained age when annuity is
to begin is | 12 | | less than 60 to the end that the total reduction at age 55
| 13 | | shall be 30%, except that an employee retiring at age 55 or | 14 | | over but less
than age 60, having at least 35 years of service, | 15 | | shall not be subject to
the reduction in his retirement annuity | 16 | | because of retirement below age 60.
| 17 | | An employee who withdraws on or after January 1, 1988, with | 18 | | 20 or more
years of service and before age 60, is entitled to | 19 | | annuity as computed
above, to begin not earlier than age 50 if | 20 | | under such age at withdrawal,
reduced 1/2 of 1% for each full | 21 | | month or fractional part thereof that his
attained age when | 22 | | annuity is to begin is less than 60, to the end that the
total | 23 | | reduction at age 50 shall be 60%, except that an employee | 24 | | retiring at
age 50 or over but less than age 60, having at | 25 | | least 30 years of service,
shall not be subject to the | 26 | | reduction in retirement annuity because of
retirement below age |
| | | SB3630 | - 3 - | LRB097 19617 EFG 64871 b |
|
| 1 | | 60.
| 2 | | An employee who withdraws on or after January 1, 1992 but | 3 | | before
January 1, 1993, at age 60 or over with 5 or more years | 4 | | of service, may
elect, in lieu of any other employee annuity | 5 | | provided in this Section, to
receive an annuity for life equal | 6 | | to 2.20% for each of the first 20 years
of service, and 2.40% | 7 | | for each year of service in excess of 20, based on the
highest | 8 | | average annual salary for any 4 consecutive years within the | 9 | | last
10 years of service immediately preceding the date of | 10 | | withdrawal. An
employee who withdraws on or after January 1, | 11 | | 1992, but before January 1,
1993, on or after attainment of age | 12 | | 55 but before attainment of age 60 with
5 or more years of | 13 | | service, is entitled to elect such annuity, but the
annuity | 14 | | shall be reduced 0.25% for each full month or fractional part
| 15 | | thereof that his attained age when the annuity is to begin is | 16 | | less than age
60, to the end that the total reduction at age 55 | 17 | | shall be 15%, except that
an employee retiring at age 55 or | 18 | | over but less than age 60, having at
least 30 years of service, | 19 | | shall not be subject to the reduction in
retirement annuity | 20 | | because of retirement below age 60. This annuity benefit
| 21 | | formula shall only apply to those employees who are age 55 or | 22 | | over prior to
January 1, 1993, and who elect to withdraw at age | 23 | | 55 or over on or after
January 1, 1992 but before January 1, | 24 | | 1993.
| 25 | | An employee who withdraws on or after July 1, 1996 but | 26 | | before
August 1, 1996, at age 55 or over with 8 or more years of |
| | | SB3630 | - 4 - | LRB097 19617 EFG 64871 b |
|
| 1 | | service, may
elect, in lieu of any other employee annuity | 2 | | provided in this Section, to
receive an annuity for life equal | 3 | | to 2.20% for each of the first 20 years
of service, and 2.40% | 4 | | for each year of service in excess of 20, based on the
highest | 5 | | average annual salary for any 4 consecutive years within the | 6 | | last
10 years of service immediately preceding the date of | 7 | | withdrawal, but the
annuity shall be reduced by 0.25% for each | 8 | | full month or fractional part
thereof that the annuitant's | 9 | | attained age when the annuity is to begin is
less than age 60, | 10 | | unless the annuitant has at least 30 years of service.
| 11 | | The maximum annuity under this paragraph (a) shall not | 12 | | exceed 70% of
highest average annual salary for any 5 | 13 | | consecutive years within the last
10 years of service in the | 14 | | case of an employee who withdraws prior to July
1, 1971, and | 15 | | 75% of the highest average annual salary for any 4 consecutive
| 16 | | years within the last 10 years of service immediately preceding | 17 | | the date of
withdrawal if withdrawal takes place on or after | 18 | | July 1, 1971 and prior
to January 1, 1988, and 80% of the | 19 | | highest average annual salary for any 4
consecutive years | 20 | | within the last 10 years of service immediately preceding
the | 21 | | date of withdrawal if withdrawal takes place on or after | 22 | | January 1,
1988. Fifteen hundred dollars shall be considered | 23 | | the minimum amount of
annual salary for any year, and the | 24 | | maximum shall be his salary as defined
in this Article, except | 25 | | that for the years before 1957 and subsequent to
1952 the | 26 | | maximum annual salary to be considered shall be $6,000, and for
|
| | | SB3630 | - 5 - | LRB097 19617 EFG 64871 b |
|
| 1 | | any year before the year 1953, $4,800.
| 2 | | (b) Any employee who withdraws on or after July 1, 1985 but | 3 | | prior to
January 1, 1988, at age 60 or over with 10 or more | 4 | | years of service, may
elect in lieu of the benefit in paragraph | 5 | | (a) to receive an annuity for
life equal to 2.00% for each year | 6 | | of service, based on the highest average
annual salary for any | 7 | | 4 consecutive years within the last 10 years of
service | 8 | | immediately preceding the date of withdrawal. An employee who
| 9 | | withdraws on or after July 1, 1985, but prior to January 1, | 10 | | 1988, with 10
or more years of service, but before age 60, is | 11 | | entitled to elect such
annuity, to begin not earlier than age | 12 | | 55, but the annuity shall be reduced
0.5% for each full month | 13 | | or fractional part thereof that his attained age
when the | 14 | | annuity is to begin is less than 60, to the end that the total
| 15 | | reduction at age 55 shall be 30%; except that an employee | 16 | | retiring at age
55 or over but less than age 60, having at | 17 | | least 30 years of service, shall
not be subject to the | 18 | | reduction in retirement annuity because of retirement
below age | 19 | | 60.
| 20 | | An employee who withdraws on or after January 1, 1988, at | 21 | | age 60 or
over with 10 or more years of service, may elect, in | 22 | | lieu of the benefit in
paragraph (a), to receive an annuity for | 23 | | life equal to 2.20% for each of the
first 20 years of service, | 24 | | and 2.4% for each year of service in excess of 20,
based on the | 25 | | highest average annual salary for any 4 consecutive years | 26 | | within
the last 10 years of service immediately preceding the |
| | | SB3630 | - 6 - | LRB097 19617 EFG 64871 b |
|
| 1 | | date of withdrawal.
An employee who withdraws on or after | 2 | | January 1, 1988, with 10 or more
years of service, but before | 3 | | age 60, is entitled to elect such annuity, to
begin not earlier | 4 | | than age 50, but the annuity shall be reduced 0.5% for
each | 5 | | full month or fractional part thereof that his attained age | 6 | | when the
annuity is to begin is less than 60, to the end that | 7 | | the total reduction at
age 50 shall be 60%, except that an | 8 | | employee retiring at age 50 or over
but less than age 60, | 9 | | having at least 30 years of service, shall not be
subject to | 10 | | the reduction in retirement annuity because of retirement below
| 11 | | age 60.
| 12 | | An employee who withdraws on or after June 30, 2002 with 10 | 13 | | or more
years of service may elect, in lieu of any other | 14 | | retirement annuity provided
under this Article, to receive an | 15 | | annuity for life, beginning no earlier than
upon attainment of | 16 | | age 50, equal to 2.40% of his or her highest average annual
| 17 | | salary for any 4 consecutive years within the last 10 years of | 18 | | service
immediately preceding withdrawal, for each year of | 19 | | service. If the employee
has less than 30 years of service, the | 20 | | annuity shall be reduced by 0.5% for
each full month or | 21 | | remaining fraction thereof that the employee's attained age
| 22 | | when the annuity is to begin is less than 60.
| 23 | | The maximum annuity under this paragraph (b) shall not | 24 | | exceed 75% of the
highest average annual salary for any 4 | 25 | | consecutive years within the last
10 years of service | 26 | | immediately preceding the date of withdrawal if
withdrawal |
| | | SB3630 | - 7 - | LRB097 19617 EFG 64871 b |
|
| 1 | | occurs prior to January 1, 1988, or 80% of the highest average
| 2 | | annual salary for any 4 consecutive years within the last 10 | 3 | | years of
service immediately preceding the date of withdrawal | 4 | | if withdrawal takes
place on or after January 1, 1988.
| 5 | | The provisions of this paragraph (b) do not apply to any | 6 | | former County
employee receiving an annuity from the fund, who | 7 | | re-enters service as a
County employee, unless he renders at | 8 | | least 3 years of additional service
after the date of re-entry.
| 9 | | (c) For an employee receiving disability benefit, the | 10 | | salary for annuity
purposes under paragraph (a) or (b) of this | 11 | | Section shall, for all periods of
disability benefit subsequent | 12 | | to the year 1956, be the amount on which his
disability benefit | 13 | | was based.
| 14 | | (d) A county employee with 20 or more years of service, | 15 | | whose entire
disability benefit credit period expires before | 16 | | attainment of age 50
(age 55 if expiration occurs before | 17 | | January 1, 1988 , or age 62 if the member first became a | 18 | | participant on or after January 1, 2011 ), while
still disabled | 19 | | for service is entitled upon withdrawal to the larger of:
| 20 | | (1) The minimum annuity provided above, assuming that | 21 | | he is then age 50
(age 55 if expiration occurs before | 22 | | January 1, 1988 , or age 62 if the member first became a | 23 | | participant on or after January 1, 2011 ), and reducing such
| 24 | | annuity to its actuarial equivalent at his attained age on | 25 | | such date, or
| 26 | | (2) the annuity provided from his age and service and |
| | | SB3630 | - 8 - | LRB097 19617 EFG 64871 b |
|
| 1 | | prior service
annuity credits.
| 2 | | (e) The minimum annuity provisions above do not apply to | 3 | | any former
county employee receiving an annuity from the fund, | 4 | | who re-enters service
as a county employee, unless he renders | 5 | | at least 3 years of additional
service after the date of | 6 | | re-entry.
| 7 | | (f) Any employee in service on July 1, 1947, or who enters | 8 | | service
thereafter before attaining age 65 and withdraws after | 9 | | age 65 with less
than 10 years of service for whom the annuity | 10 | | has been fixed under the
foregoing Sections of this Article, | 11 | | shall, instead of the annuity so fixed,
receive an annuity as | 12 | | follows:
| 13 | | Such amount as he could have received had the accumulated | 14 | | amounts for
annuity been improved with interest at the | 15 | | effective rate to the date of
withdrawal, or to attainment of | 16 | | age 70, whichever is earlier, and had the
county contributed to | 17 | | such earlier date for age and service annuity the
amount that | 18 | | it would have contributed had he been under age 65, after the
| 19 | | date his annuity was fixed in accordance with this Article, and | 20 | | assuming
his annuity were computed from such accumulations as | 21 | | of his age on such
earlier date. However those employees who | 22 | | before July 1, 1953, made
additional contributions in | 23 | | accordance with this Article, the annuity so
computed under | 24 | | this paragraph shall not exceed the annuity which would be
| 25 | | payable under the other provisions of this Section if the | 26 | | employee
concerned was credited with 20 years of service and |
| | | SB3630 | - 9 - | LRB097 19617 EFG 64871 b |
|
| 1 | | would qualify for
annuity thereunder.
| 2 | | (g) Instead of the annuity provided in this or any other | 3 | | Section of this
Article, an employee having attained age 65 | 4 | | with at least 15 years of
service may elect to receive a | 5 | | minimum annual annuity for life equal to 1%
of the highest | 6 | | average annual salary for any 4 consecutive years within the
| 7 | | last 10 years of service immediately preceding retirement for | 8 | | each year of
service, plus the sum of $25 for each year of | 9 | | service provided that no such
minimum annual annuity may be | 10 | | greater than 60% of such highest average
annual salary.
| 11 | | (h) The annuity is payable in equal monthly installments.
| 12 | | (i) If, by operation of law, a function of a governmental | 13 | | unit, as
defined by Section 20-107 of this Code, is transferred | 14 | | in whole or in part
to the county in which this Article 9 is | 15 | | created as set forth in Section
9-101, and employees of the | 16 | | governmental unit are transferred as a class to
such county, | 17 | | the earnings credits in the retirement system covering the
| 18 | | governmental unit which have been validated under Section | 19 | | 20-109 of this
Code shall be considered in determining the | 20 | | highest average annual salary
for purposes of this Section | 21 | | 9-134.
| 22 | | (j) The annuity being paid to an employee annuitant on July | 23 | | 1, 1988,
shall be increased on that date by 1% for each full | 24 | | year that has elapsed
from the date the annuity began.
| 25 | | (k) Notwithstanding anything to the contrary in this | 26 | | Article 9, Section
20-131 shall not apply to an employee who |
| | | SB3630 | - 10 - | LRB097 19617 EFG 64871 b |
|
| 1 | | withdraws on or after January 1,
1988, but prior to attaining | 2 | | age 55. Therefore, no employee shall be
entitled to elect to | 3 | | have the alternative formula previously set forth in
Section | 4 | | 20-122 prior to the amendatory Act of 1975 apply to any | 5 | | annuity,
the payment of which commenced after January 1, 1988, | 6 | | but prior to such
employee's attainment of age 55.
| 7 | | (Source: P.A. 92-599, eff. 6-28-02.)
| 8 | | (40 ILCS 5/9-160) (from Ch. 108 1/2, par. 9-160)
| 9 | | Sec. 9-160. Annuity after withdrawal while disabled. An | 10 | | employee whose disability continues after he has received | 11 | | ordinary
disability benefit for the maximum period of time | 12 | | prescribed by this
Article, and who withdraws before age 60 | 13 | | while still so disabled, is
entitled to receive the annuity | 14 | | provided from the total sum accumulated
to his credit from | 15 | | employee contributions and county contributions to be
computed | 16 | | as of his age on the date of withdrawal.
| 17 | | The annuity to which his wife shall be entitled upon his | 18 | | death, shall
be fixed on the date of his withdrawal. It shall | 19 | | be provided on a
reversionary annuity basis from the total sum | 20 | | accumulated to his credit
for widow's annuity on the date of | 21 | | such withdrawal.
| 22 | | Upon the death of any such employee while on annuity, if | 23 | | his service
was at least 4 years after the date of his original | 24 | | entry, and at least
2 years after the date of his latest | 25 | | re-entry, his unmarried child or
children under age 18 shall be |
| | | SB3630 | - 11 - | LRB097 19617 EFG 64871 b |
|
| 1 | | entitled to annuity specified in this
Article for children of | 2 | | an employee who retires after age 50 (age 55 for
withdrawal | 3 | | before January 1, 1988), subject to
prescribed limitations on | 4 | | total payments to a family of an employee.
| 5 | | (Source: P.A. 85-964.)
| 6 | | Section 99. Effective date. This Act takes effect upon | 7 | | becoming law.
|
|