Full Text of HB4666 97th General Assembly
HB4666eng 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 2-108.1, 2-119.1, 2-121.1, 2-126, 18-125, 18-125.1, | 6 | | 18-128.01, and 18-133 as follows:
| 7 | | (40 ILCS 5/2-108.1) (from Ch. 108 1/2, par. 2-108.1)
| 8 | | Sec. 2-108.1. Highest salary for annuity purposes.
| 9 | | (a) "Highest salary for annuity purposes" means whichever | 10 | | of
the following is applicable to the participant:
| 11 | | For a participant who first becomes a participant of this | 12 | | System before August 10, 2009 (the effective date of Public Act | 13 | | 96-207):
| 14 | | (1) For a participant who is a member of the General | 15 | | Assembly on his
or her last day of service: the highest | 16 | | salary that is prescribed by law,
on the participant's last | 17 | | day of service, for a member of the General
Assembly who is | 18 | | not an officer; plus, if the participant was elected or
| 19 | | appointed to serve as an officer of the General Assembly | 20 | | for 2 or more
years and has made contributions as required | 21 | | under subsection (d) of
Section 2-126, the highest | 22 | | additional amount of compensation prescribed by
law, at the | 23 | | time of the participant's service as an officer, for |
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| 1 | | members of
the General Assembly who serve in that office.
| 2 | | (2) For a participant who holds one of the State | 3 | | executive offices
specified in Section 2-105 on his or her | 4 | | last day of service: the highest
salary prescribed by law | 5 | | for service in that office on the participant's
last day of | 6 | | service.
| 7 | | (3) For a participant who is Clerk or Assistant Clerk | 8 | | of the House of Representatives or Secretary or Assistant | 9 | | Secretary of the Senate
on his or her last day of service: | 10 | | the salary received for service in that
capacity on the | 11 | | last day of service, but not to exceed the highest salary
| 12 | | (including additional compensation for service as an | 13 | | officer) that is
prescribed by law on the participant's | 14 | | last day of service for the highest
paid officer of the | 15 | | General Assembly.
| 16 | | (4) For a participant who is a continuing participant | 17 | | under Section
2-117.1 on his or her last day of service: | 18 | | the salary received for service
in that capacity on the | 19 | | last day of service, but not to exceed the highest
salary | 20 | | (including additional compensation for service as an | 21 | | officer) that
is prescribed by law on the participant's | 22 | | last day of service for the
highest paid officer of the | 23 | | General Assembly.
| 24 | | For a participant who first becomes a participant of this | 25 | | System on or after August 10, 2009 (the effective date of | 26 | | Public Act 96-207) and before January 1, 2011 (the effective |
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| 1 | | date of Public Act 96-889), the average monthly salary obtained | 2 | | by dividing the total salary of the participant during the | 3 | | period of: (1) the 48 consecutive months of service within the | 4 | | last 120 months of service in which the total compensation was | 5 | | the highest, or (2) the total period of service, if less than | 6 | | 48 months, by the number of months of service in that period. | 7 | | For a participant who first becomes a participant of this | 8 | | System on or after January 1, 2011 (the effective date of | 9 | | Public Act 96-889) but before the effective date of this | 10 | | amendatory Act of the 97th General Assembly , the average | 11 | | monthly salary obtained by dividing the total salary of the | 12 | | participant during the 96 consecutive months of service within | 13 | | the last 120 months of service in which the total compensation | 14 | | was the highest by the number of months of service in that | 15 | | period; however, beginning January 1, 2011, the highest salary | 16 | | for annuity purposes may not exceed $106,800, except that that | 17 | | amount shall annually thereafter be increased by the lesser of | 18 | | (i) 3% of that amount, including all previous adjustments, or | 19 | | (ii) the annual unadjusted percentage increase (but not less | 20 | | than zero) in the consumer price index-u
for the 12 months | 21 | | ending with the September preceding each November 1. | 22 | | For a participant who first becomes a participant of this | 23 | | System on or after the effective date of this amendatory Act of | 24 | | the 97th General Assembly, the average monthly salary obtained | 25 | | by dividing the total salary of the participant during the 96 | 26 | | consecutive months of service within the last 120 months of |
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| 1 | | service in which the total compensation was the highest by the | 2 | | number of months of service in that period; however, the | 3 | | highest salary for annuity purposes may not exceed in any year | 4 | | the salary limitation determined for that year by the Public | 5 | | Pension Division of the Department of Insurance under | 6 | | subsection (b-5) of Section 1-160 of this Code. | 7 | | (a-5) "Consumer price index-u" means
the index published by | 8 | | the Bureau of Labor Statistics of the United States
Department | 9 | | of Labor that measures the average change in prices of goods | 10 | | and
services purchased by all urban consumers, United States | 11 | | city average, all
items, 1982-84 = 100. | 12 | | The new amount resulting from each annual adjustment
shall | 13 | | be determined by the Public Pension Division of the Department | 14 | | of Insurance shall determine in October of each year (i) the | 15 | | annual unadjusted percentage increase (but not less than zero) | 16 | | in the consumer price index-u
for the 12 months ending with the | 17 | | preceding September and (ii) the salary limitation under | 18 | | subsection (a) for the following year for the category of | 19 | | participants who first become participants of this System on or | 20 | | after January 1, 2011 but before the effective date of this | 21 | | amendatory Act of the 97th General Assembly. The Division shall | 22 | | make these determinations and made available to the Board by | 23 | | November 1 of each year. | 24 | | (b) The earnings limitations of subsection (a) apply to | 25 | | earnings
under any other participating system under the | 26 | | Retirement Systems Reciprocal
Act that are considered in |
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| 1 | | calculating a proportional annuity under this
Article, except | 2 | | in the case of a person who first became a member of this
| 3 | | System before August 22,
1994.
| 4 | | (c) In calculating the subsection (a) earnings limitation | 5 | | to be applied to
earnings under any other participating system | 6 | | under the Retirement Systems
Reciprocal Act for the purpose of | 7 | | calculating a proportional annuity under this
Article, the | 8 | | participant's last day of service shall be deemed to mean the | 9 | | last
day of service in any participating system from which the | 10 | | person has applied
for a proportional annuity under the | 11 | | Retirement Systems Reciprocal Act.
| 12 | | (Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11; | 13 | | 96-1490, eff. 1-1-11.)
| 14 | | (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
| 15 | | Sec. 2-119.1. Automatic increase in retirement annuity.
| 16 | | (a) Except as otherwise provided in this Section, a A | 17 | | participant who retires after June 30, 1967, and who has not
| 18 | | received an initial increase under this Section before the | 19 | | effective date
of this amendatory Act of 1991, shall, in | 20 | | January or July next following
the first anniversary of | 21 | | retirement, whichever occurs first, and in the same
month of | 22 | | each year thereafter, but in no event prior to age 60, have the | 23 | | amount
of the originally granted retirement annuity increased | 24 | | as follows: for each
year through 1971, 1 1/2%; for each year | 25 | | from 1972 through 1979, 2%; and for
1980 and each year |
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| 1 | | thereafter, 3%. Annuitants who have received an initial
| 2 | | increase under this subsection prior to the effective date of | 3 | | this amendatory
Act of 1991 shall continue to receive their | 4 | | annual increases in the same month
as the initial increase.
| 5 | | (b) Beginning January 1, 1990, for eligible participants | 6 | | who remain
in service after attaining 20 years of creditable | 7 | | service, the 3% increases
provided under subsection (a) shall | 8 | | begin to accrue on the January 1 next
following the date upon | 9 | | which the participant (1) attains age 55, or (2)
attains 20 | 10 | | years of creditable service, whichever occurs later, and shall
| 11 | | continue to accrue while the participant remains in service; | 12 | | such increases
shall become payable on January 1 or July 1, | 13 | | whichever occurs first, next
following the first anniversary of | 14 | | retirement. For any person who has service
credit in the System | 15 | | for the entire period from January 15, 1969 through
December | 16 | | 31, 1992, regardless of the date of termination of service, the
| 17 | | reference to age 55 in clause (1) of this subsection (b) shall | 18 | | be deemed to
mean age 50.
| 19 | | This subsection (b) does not apply to any person who first | 20 | | becomes a
member of the System after the effective date of this | 21 | | amendatory Act of
the 93rd General Assembly.
| 22 | | (b-5) Notwithstanding any other provision of this Article, | 23 | | a participant who first becomes a participant on or after | 24 | | January 1, 2011 (the effective date of Public Act 96-889) but | 25 | | before the effective date of this amendatory Act of the 97th | 26 | | General Assembly shall, in January or July next following the |
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| 1 | | first anniversary of retirement, whichever occurs first, and in | 2 | | the same month of each year thereafter, but in no event prior | 3 | | to age 67, have the amount of the retirement annuity then being | 4 | | paid increased by 3% or the annual unadjusted percentage | 5 | | increase in the Consumer Price Index for All Urban Consumers as | 6 | | determined by the Public Pension Division of the Department of | 7 | | Insurance under subsection (a-5) (a) of Section 2-108.1, | 8 | | whichever is less. | 9 | | (b-10) Notwithstanding any other provision of this | 10 | | Article, a participant who first becomes a participant on or | 11 | | after the effective date of this amendatory Act of the 97th | 12 | | General Assembly shall, in January or July next following the | 13 | | first anniversary of retirement, whichever occurs first, and in | 14 | | the same month of each year thereafter, but in no event prior | 15 | | to age 67, have the annuity increased by 3% or one-half the | 16 | | annual unadjusted percentage increase (but not less than zero) | 17 | | in the Consumer Price Index for All Urban Consumers as | 18 | | determined by the Public Pension Division of the Department of | 19 | | Insurance under subsection (a-5) of Section 2-108.1, whichever | 20 | | is less, of the originally granted retirement annuity. | 21 | | (c) The foregoing provisions relating to automatic | 22 | | increases are not
applicable to a participant who retires | 23 | | before having made contributions
(at the rate prescribed in | 24 | | Section 2-126) for automatic increases for less
than the | 25 | | equivalent of one full year. However, in order to be eligible | 26 | | for
the automatic increases, such a participant may make |
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| 1 | | arrangements to pay
to the system the amount required to bring | 2 | | the total contributions for the
automatic increase to the | 3 | | equivalent of one year's contributions based upon
his or her | 4 | | last salary.
| 5 | | (d) A participant who terminated service prior to July 1, | 6 | | 1967, with at
least 14 years of service is entitled to an | 7 | | increase in retirement annuity
beginning January, 1976, and to | 8 | | additional increases in January of each
year thereafter.
| 9 | | The initial increase shall be 1 1/2% of the originally | 10 | | granted retirement
annuity multiplied by the number of full | 11 | | years that the annuitant was in
receipt of such annuity prior | 12 | | to January 1, 1972, plus 2% of the originally
granted | 13 | | retirement annuity for each year after that date. The | 14 | | subsequent
annual increases shall be at the rate of 2% of the | 15 | | originally granted
retirement annuity for each year through | 16 | | 1979 and at the rate of 3% for
1980 and thereafter.
| 17 | | (e) Except as otherwise provided in this Section, beginning | 18 | | Beginning January 1, 1990, all automatic annual increases | 19 | | payable
under this Section shall be calculated as a percentage | 20 | | of the total annuity
payable at the time of the increase, | 21 | | including previous increases granted
under this Article.
| 22 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| 23 | | (40 ILCS 5/2-121.1) (from Ch. 108 1/2, par. 2-121.1)
| 24 | | Sec. 2-121.1. Survivor's annuity - amount.
| 25 | | (a) A surviving spouse shall be entitled to 66 2/3% of the |
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| 1 | | amount of
retirement annuity to which the participant or | 2 | | annuitant was entitled on
the date of death, without regard to | 3 | | whether the participant had attained
age 55 prior to his or her | 4 | | death, subject to a minimum payment of 10% of
salary. If a | 5 | | surviving spouse, regardless of age, has in his or her care
at | 6 | | the date of death any eligible child or children of the | 7 | | participant, the
survivor's annuity shall be the greater of the | 8 | | following: (1) 66 2/3% of
the amount of retirement annuity to | 9 | | which the participant or annuitant was
entitled on the date of | 10 | | death, or (2) 30% of the participant's salary
increased by 10% | 11 | | of salary on account of each such child, subject to a
total | 12 | | payment for the surviving spouse and children of 50% of salary. | 13 | | If
eligible children survive but there is no surviving spouse, | 14 | | or if the
surviving spouse dies or becomes disqualified by
| 15 | | remarriage while eligible children survive, each
eligible | 16 | | child shall be entitled to an annuity of 20% of salary, subject
| 17 | | to a maximum total payment for all such children of 50% of | 18 | | salary.
| 19 | | However, the survivor's annuity payable under this Section | 20 | | shall not be
less than 100% of the amount of retirement annuity | 21 | | to which the participant
or annuitant was entitled on the date | 22 | | of death, if he or she is survived by
a dependent disabled | 23 | | child.
| 24 | | The salary to be used for determining these benefits shall | 25 | | be the
salary used for determining the amount of retirement | 26 | | annuity as provided
in Section 2-119.01.
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| 1 | | (b) Upon the death of a participant after the termination | 2 | | of service or
upon death of an annuitant, the maximum total | 3 | | payment to a surviving spouse
and eligible children, or to | 4 | | eligible children alone if there is no surviving
spouse, shall | 5 | | be 75% of the retirement annuity to which the participant
or | 6 | | annuitant was entitled, unless there is a dependent disabled | 7 | | child
among the survivors.
| 8 | | (c) When a child ceases to be an eligible child, the | 9 | | annuity to that
child, or to the surviving spouse on account of | 10 | | that child, shall thereupon
cease, and the annuity payable to | 11 | | the surviving spouse or other eligible
children shall be | 12 | | recalculated if necessary.
| 13 | | Upon the ineligibility of the last eligible child, the | 14 | | annuity shall
immediately revert to the amount payable upon | 15 | | death of a participant or
annuitant who leaves no eligible | 16 | | children. If the surviving spouse is then
under age 50, the | 17 | | annuity as revised shall be deferred until the attainment
of | 18 | | age 50.
| 19 | | (d) Except as otherwise provided in this Section, beginning | 20 | | Beginning January 1, 1990, every survivor's annuity shall be | 21 | | increased
(1) on each January 1 occurring on or after the | 22 | | commencement of the annuity if
the deceased member died while | 23 | | receiving a retirement annuity, or (2) in
other cases, on each | 24 | | January 1 occurring on or after the first anniversary
of the | 25 | | commencement of the annuity, by an amount equal to 3% of the | 26 | | current
amount of the annuity, including any previous increases |
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| 1 | | under this Article.
Such increases shall apply without regard | 2 | | to whether the deceased member
was in service on or after the | 3 | | effective date of this amendatory Act of
1991, but shall not | 4 | | accrue for any period prior to January 1, 1990.
| 5 | | (d-5) Notwithstanding any other provision of this Article, | 6 | | the initial survivor's annuity of a survivor of a participant | 7 | | who first becomes a participant on or after January 1, 2011 | 8 | | (the effective date of Public Act 96-889) but before the | 9 | | effective date of this amendatory Act of the 97th General | 10 | | Assembly shall be in the amount of 66 2/3% of the amount of the | 11 | | retirement annuity to which the participant or annuitant was | 12 | | entitled on the date of death and shall be increased (1) on | 13 | | each January 1 occurring on or after the commencement of the | 14 | | annuity if
the deceased member died while receiving a | 15 | | retirement annuity or (2) in
other cases, on each January 1 | 16 | | occurring on or after the first anniversary
of the commencement | 17 | | of the annuity, by an amount equal to 3% or the annual | 18 | | unadjusted percentage increase in the Consumer Price Index for | 19 | | All Urban Consumers as determined by the Public Pension | 20 | | Division of the Department of Insurance under subsection (a-5) | 21 | | (a) of Section 2-108.1, whichever is less, of the survivor's | 22 | | annuity then being paid. | 23 | | (d-10) Notwithstanding any other provision of this | 24 | | Article, the initial survivor's annuity of a survivor of a | 25 | | participant who first becomes a participant on or after the | 26 | | effective date of this amendatory Act of the 97th General |
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| 1 | | Assembly shall be in the amount of 66 2/3% of the amount of the | 2 | | retirement annuity to which the participant or annuitant was | 3 | | entitled on the date of death and shall be increased (1) on | 4 | | each January 1 occurring on or after the commencement of the | 5 | | annuity if
the deceased member died while receiving a | 6 | | retirement annuity or (2) in
other cases, on each January 1 | 7 | | occurring on or after the first anniversary
of the commencement | 8 | | of the annuity, by an amount equal to 3% or one-half the annual | 9 | | unadjusted percentage increase (but not less than zero) in the | 10 | | Consumer Price Index for All Urban Consumers as determined by | 11 | | the Public Pension Division of the Department of Insurance | 12 | | under subsection (a-5) of Section 2-108.1, whichever is less, | 13 | | of the originally granted survivor's annuity. | 14 | | (e) Notwithstanding any other provision of this Article, | 15 | | beginning
January 1, 1990, the minimum survivor's annuity | 16 | | payable to any person who
is entitled to receive a survivor's | 17 | | annuity under this Article shall be
$300 per month, without | 18 | | regard to whether or not the deceased participant
was in | 19 | | service on the effective date of this amendatory Act of 1989.
| 20 | | (f) In the case of a proportional survivor's annuity | 21 | | arising under
the Retirement Systems Reciprocal Act where the | 22 | | amount payable by the
System on January 1, 1993 is less than | 23 | | $300 per month, the amount payable
by the System shall be | 24 | | increased beginning on that date by a monthly amount
equal to | 25 | | $2 for each full year that has expired since the annuity began.
| 26 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
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| 1 | | (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
| 2 | | Sec. 2-126. Contributions by participants.
| 3 | | (a) Each participant shall contribute toward the cost of | 4 | | his or her
retirement annuity a percentage of each payment of | 5 | | salary received by him or
her for service as a member as | 6 | | follows: for service between October 31, 1947
and January 1, | 7 | | 1959, 5%; for service between January 1, 1959 and June 30, | 8 | | 1969,
6%; for service between July 1, 1969 and January 10, | 9 | | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for | 10 | | service after December 31, 1981, 8 1/2%.
| 11 | | (b) Beginning August 2, 1949, each male participant, and | 12 | | from July 1,
1971, each female participant shall contribute | 13 | | towards the cost of the
survivor's annuity 2% of salary.
| 14 | | A participant who has no eligible survivor's annuity | 15 | | beneficiary may elect
to cease making contributions for | 16 | | survivor's annuity under this subsection.
A survivor's annuity | 17 | | shall not be payable upon the death of a person who has
made | 18 | | this election, unless prior to that death the election has been | 19 | | revoked
and the amount of the contributions that would have | 20 | | been paid under this
subsection in the absence of the election | 21 | | is paid to the System, together
with interest at the rate of 4% | 22 | | per year from the date the contributions
would have been made | 23 | | to the date of payment.
| 24 | | (c) Beginning July 1, 1967, each participant shall | 25 | | contribute 1% of
salary towards the cost of automatic increase |
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| 1 | | in annuity provided in
Section 2-119.1. These contributions | 2 | | shall be made concurrently with
contributions for retirement | 3 | | annuity purposes.
| 4 | | (d) In addition, each participant serving as an officer of | 5 | | the General
Assembly shall contribute, for the same purposes | 6 | | and at the same rates
as are required of a regular participant, | 7 | | on each additional payment
received as an officer. If the | 8 | | participant serves as an
officer for at least 2 but less than 4 | 9 | | years, he or she shall
contribute an amount equal to the amount | 10 | | that would have been contributed
had the participant served as | 11 | | an officer for 4 years. Persons who serve
as officers in the | 12 | | 87th General Assembly but cannot receive the additional
payment | 13 | | to officers because of the ban on increases in salary during | 14 | | their
terms may nonetheless make contributions based on those | 15 | | additional payments
for the purpose of having the additional | 16 | | payments included in their highest
salary for annuity purposes; | 17 | | however, persons electing to make these
additional | 18 | | contributions must also pay an amount representing the
| 19 | | corresponding employer contributions, as calculated by the | 20 | | System.
| 21 | | (e) Notwithstanding any other provision of this Article, | 22 | | the required contribution of a participant who first becomes a | 23 | | participant on or after January 1, 2011 shall not be based on | 24 | | any salary in excess of the applicable annually-adjusted | 25 | | limitation on exceed the contribution that would be due under | 26 | | this Article if that participant's highest salary for annuity |
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| 1 | | purposes were $106,800, plus any increases in that amount under | 2 | | Section 2-108.1. | 3 | | (Source: P.A. 96-1490, eff. 1-1-11.)
| 4 | | (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
| 5 | | Sec. 18-125. Retirement annuity amount.
| 6 | | (a) The annual retirement annuity for a participant who | 7 | | terminated
service as a judge prior to July 1, 1971 shall be | 8 | | based on the law in
effect at the time of termination of | 9 | | service.
| 10 | | (b) Except as provided in subsection (b-5), effective July | 11 | | 1, 1971, the retirement annuity for any participant
in service | 12 | | on or after such date shall be 3 1/2% of final average salary,
| 13 | | as defined in this Section, for each of the first 10 years of | 14 | | service, and
5% of such final average salary for each year of | 15 | | service on excess of 10.
| 16 | | For purposes of this Section, final average salary for a | 17 | | participant who first serves as a judge before August 10, 2009 | 18 | | (the effective date of Public Act 96-207) shall be:
| 19 | | (1) the average salary for the last 4 years of credited | 20 | | service as a
judge for a participant who terminates service | 21 | | before July 1, 1975.
| 22 | | (2) for a participant who terminates service after June | 23 | | 30, 1975
and before July 1, 1982, the salary on the last | 24 | | day of employment as a judge.
| 25 | | (3) for any participant who terminates service after |
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| 1 | | June 30, 1982 and
before January 1, 1990, the average | 2 | | salary for the final year of service as
a judge.
| 3 | | (4) for a participant who terminates service on or | 4 | | after January 1,
1990 but before the effective date of this | 5 | | amendatory Act of 1995, the
salary on the last day of | 6 | | employment as a judge.
| 7 | | (5) for a participant who terminates service on or | 8 | | after the effective
date of this amendatory Act of 1995, | 9 | | the salary on the last day of employment
as a judge, or the | 10 | | highest salary received by the participant for employment | 11 | | as
a judge in a position held by the participant for at | 12 | | least 4 consecutive years,
whichever is greater.
| 13 | | However, in the case of a participant who elects to | 14 | | discontinue contributions
as provided in subdivision (a)(2) of | 15 | | Section 18-133, the time of such
election shall be considered | 16 | | the last day of employment in the determination
of final | 17 | | average salary under this subsection.
| 18 | | For a participant who first serves as a judge on or after | 19 | | August 10, 2009 (the effective date of Public Act 96-207) and | 20 | | before January 1, 2011 (the effective date of Public Act | 21 | | 96-889), final average salary shall be the average monthly | 22 | | salary obtained by dividing the total salary of the participant | 23 | | during the period of: (1) the 48 consecutive months of service | 24 | | within the last 120 months of service in which the total | 25 | | compensation was the highest, or (2) the total period of | 26 | | service, if less than 48 months, by the number of months of |
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| 1 | | service in that period. | 2 | | The maximum retirement annuity for any participant shall be | 3 | | 85% of final
average salary.
| 4 | | (b-5) Notwithstanding any other provision of this Article, | 5 | | for a participant who first serves as a judge on or after | 6 | | January 1, 2011 (the effective date of Public Act 96-889), the | 7 | | annual
retirement annuity is 3% of the
participant's final | 8 | | average salary for each year of service. The maximum retirement
| 9 | | annuity payable shall be 60% of the participant's final average | 10 | | salary. | 11 | | For a participant who first serves as a judge on or after | 12 | | January 1, 2011 (the effective date of Public Act 96-889) but | 13 | | before the effective date of this amendatory Act of the 97th | 14 | | General Assembly , final average salary shall be the average | 15 | | monthly salary obtained by dividing the total salary of the | 16 | | judge during the 96 consecutive months of service within the | 17 | | last 120 months of service in which the total salary was the | 18 | | highest by the number of months of service in that period; | 19 | | however, beginning January 1, 2011, the annual salary may not | 20 | | exceed $106,800, except that that amount shall annually | 21 | | thereafter be increased by the lesser of (i) 3% of that amount, | 22 | | including all previous adjustments, or (ii) the annual | 23 | | unadjusted percentage increase (but not less than zero) in the | 24 | | consumer price index-u
for the 12 months ending with the | 25 | | September preceding each November 1. | 26 | | For a participant who first serves as a judge on or after |
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| 1 | | the effective date of this amendatory Act of the 97th General | 2 | | Assembly, final average salary shall be the average monthly | 3 | | salary obtained by dividing the total salary of the judge | 4 | | during the 96 consecutive months of service within the last 120 | 5 | | months of service in which the total salary was the highest by | 6 | | the number of months of service in that period; however, the | 7 | | annual salary may not exceed in any year the salary limitation | 8 | | determined for that year by the Public Pension Division of the | 9 | | Department of Insurance under subsection (b-5) of Section 1-160 | 10 | | of this Code. | 11 | | (b-10) "Consumer price index-u" means
the index published | 12 | | by the Bureau of Labor Statistics of the United States
| 13 | | Department of Labor that measures the average change in prices | 14 | | of goods and
services purchased by all urban consumers, United | 15 | | States city average, all
items, 1982-84 = 100. | 16 | | The new amount resulting from each annual adjustment
shall | 17 | | be determined by the Public Pension Division of the Department | 18 | | of Insurance shall determine in October of each year (i) the | 19 | | annual unadjusted percentage increase (but not less than zero) | 20 | | in the consumer price index-u
for the 12 months ending with the | 21 | | preceding September and (ii) the salary limitation under | 22 | | subsection (b-5) of this Section for the following year for the | 23 | | category of participants who first serve as a judge on or after | 24 | | January 1, 2011 but before the effective date of this | 25 | | amendatory Act of the 97th General Assembly. The Division shall | 26 | | make these determinations and made available to the Board by |
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| 1 | | November 1st of each year. | 2 | | (c) The retirement annuity for a participant who retires | 3 | | prior to age 60
with less than 28 years of service in the | 4 | | System shall be reduced 1/2 of 1%
for each month that the | 5 | | participant's age is under 60 years at the time the
annuity | 6 | | commences. However, for a participant who retires on or after | 7 | | the
effective date of this amendatory Act of the 91st General | 8 | | Assembly, the
percentage reduction in retirement annuity | 9 | | imposed under this subsection shall
be reduced by 5/12 of 1% | 10 | | for every month of service in this System in excess of
20 | 11 | | years, and therefore a participant with at least 26 years of | 12 | | service in this
System may retire at age 55 without any | 13 | | reduction in annuity.
| 14 | | The reduction in retirement annuity imposed by this | 15 | | subsection shall not
apply in the case of retirement on account | 16 | | of disability.
| 17 | | (d) Notwithstanding any other provision of this Article, | 18 | | for a participant who first serves as a judge on or after | 19 | | January 1, 2011 (the effective date of Public Act 96-889) and | 20 | | who is retiring after attaining age 62, the retirement annuity | 21 | | shall be reduced by 1/2
of 1% for each month that the | 22 | | participant's age is under age 67 at the time the annuity | 23 | | commences. | 24 | | (Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11; | 25 | | 96-1000, eff. 7-2-10; 96-1490, eff. 1-1-11.)
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| 1 | | (40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
| 2 | | Sec. 18-125.1. Automatic increase in retirement annuity. | 3 | | Except as otherwise provided in this Section, a A participant | 4 | | who
retires from service after June 30, 1969, shall, in January | 5 | | of the year next
following the year in which the first | 6 | | anniversary of retirement occurs, and in
January of each year | 7 | | thereafter, have the amount of his or her originally
granted | 8 | | retirement annuity increased as follows: for each year up to | 9 | | and
including 1971, 1 1/2%; for each year from 1972 through | 10 | | 1979 inclusive, 2%; and
for 1980 and each year thereafter, 3%.
| 11 | | Notwithstanding any other provision of this Article, a | 12 | | retirement annuity for a participant who first serves as a | 13 | | judge on or after January 1, 2011 (the effective date of Public | 14 | | Act 96-889) but before the effective date of this amendatory | 15 | | Act of the 97th General Assembly shall be increased in January | 16 | | of the year next
following the year in which the first | 17 | | anniversary of retirement occurs, but in no event prior to age | 18 | | 67, and in
January of each year thereafter, by an amount equal | 19 | | to 3% or the annual percentage increase in the consumer price | 20 | | index-u as determined by the Public Pension Division of the | 21 | | Department of Insurance under subsection (b-10) (b-5) of | 22 | | Section 18-125, whichever is less, of the retirement annuity | 23 | | then being paid. | 24 | | Notwithstanding any other provision of this Article, a | 25 | | retirement annuity for a participant who first serves as a | 26 | | judge on or after the effective date of this amendatory Act of |
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| 1 | | the 97th General Assembly shall be increased in January of the | 2 | | year next
following the year in which the first anniversary of | 3 | | retirement occurs, but in no event prior to age 67, and in
| 4 | | January of each year thereafter, by an amount equal to 3% or | 5 | | one-half the annual unadjusted percentage increase (but not | 6 | | less than zero) in the consumer price index-u as determined by | 7 | | the Public Pension Division of the Department of Insurance | 8 | | under subsection (b-10) of Section 18-125, whichever is less, | 9 | | of the originally granted retirement annuity. | 10 | | This Section is not applicable to a participant who retires | 11 | | before he
or she has made contributions at the rate prescribed | 12 | | in Section 18-133 for
automatic increases for not less than the | 13 | | equivalent of one full year, unless
such a participant arranges | 14 | | to pay the system the amount required to bring
the total | 15 | | contributions for the automatic increase to the equivalent of
| 16 | | one year's contribution based upon his or her last year's | 17 | | salary.
| 18 | | This Section is applicable to all participants in service | 19 | | after June 30,
1969 unless a participant has elected, prior to | 20 | | September 1,
1969, in a written direction filed with the board | 21 | | not to be subject to
the provisions of this Section. Any | 22 | | participant in service on or after
July 1, 1992 shall have the | 23 | | option of electing prior to April 1, 1993,
in a written | 24 | | direction filed with the board, to be covered by the provisions | 25 | | of
the 1969 amendatory Act. Such participant shall be required | 26 | | to make the
aforesaid additional contributions with compound |
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| 1 | | interest at 4% per annum.
| 2 | | Any participant who has become eligible to receive the | 3 | | maximum rate of
annuity and who resumes service as a judge | 4 | | after receiving a retirement
annuity under this Article shall | 5 | | have the amount of his or her
retirement annuity increased by | 6 | | 3% of the originally granted annuity amount
for each year of | 7 | | such resumed service, beginning in January of the year
next | 8 | | following the date of such resumed service, upon subsequent
| 9 | | termination of such resumed service.
| 10 | | Beginning January 1, 1990, all automatic annual increases | 11 | | payable
under this Section shall be calculated as a percentage | 12 | | of the total annuity
payable at the time of the increase, | 13 | | including previous increases granted
under this Article.
| 14 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| 15 | | (40 ILCS 5/18-128.01) (from Ch. 108 1/2, par. 18-128.01)
| 16 | | Sec. 18-128.01. Amount of survivor's annuity.
| 17 | | (a) Upon the death of
an annuitant, his or her surviving | 18 | | spouse shall be entitled to a survivor's
annuity of 66 2/3% of | 19 | | the annuity the annuitant was receiving immediately
prior to | 20 | | his or her death, inclusive of annual increases in the | 21 | | retirement
annuity to the date of death.
| 22 | | (b) Upon the death of an active participant, his or her | 23 | | surviving spouse
shall receive a survivor's annuity of 66 2/3% | 24 | | of the annuity earned by the
participant as of the date of his | 25 | | or her death, determined without regard
to whether the |
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| 1 | | participant had attained age 60 as of that time, or 7 1/2%
of | 2 | | the last salary of the decedent, whichever is greater.
| 3 | | (c) Upon the death of a participant who had terminated | 4 | | service with at
least 10 years of service, his or her surviving | 5 | | spouse shall be entitled
to a survivor's annuity of 66 2/3% of | 6 | | the annuity earned by the deceased
participant at the date of | 7 | | death.
| 8 | | (d) Upon the death of an annuitant, active participant, or | 9 | | participant
who had terminated service with at least 10 years | 10 | | of service, each surviving
child under the age of 18 or | 11 | | disabled as defined in Section 18-128 shall
be entitled to a | 12 | | child's annuity in an amount equal to 5% of the decedent's
| 13 | | final salary, not to exceed in total for all such children the | 14 | | greater of
20% of the decedent's last salary or 66 2/3% of the | 15 | | annuity received or
earned by the decedent as provided under | 16 | | subsections (a) and (b) of this
Section. This child's annuity | 17 | | shall be paid whether or not a survivor's
annuity was elected | 18 | | under Section 18-123.
| 19 | | (e) The changes made in the survivor's annuity provisions | 20 | | by Public Act
82-306 shall apply to the survivors of a deceased | 21 | | participant or annuitant
whose death occurs on or after August | 22 | | 21, 1981.
| 23 | | (f) Except as otherwise provided in this Section, beginning | 24 | | Beginning January 1, 1990, every survivor's annuity shall be
| 25 | | increased
(1) on each January 1 occurring on or after the | 26 | | commencement of the annuity if
the deceased member died while |
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| 1 | | receiving a retirement annuity, or (2) in other cases,
on each | 2 | | January 1 occurring on or after the first anniversary of
the | 3 | | commencement of the annuity, by an amount equal to 3% of the | 4 | | current
amount of the annuity, including any previous increases | 5 | | under this Article.
Such increases shall apply without regard | 6 | | to whether the deceased member
was in service on or after the | 7 | | effective date of this amendatory Act of
1991, but shall not | 8 | | accrue for any period prior to January 1, 1990.
| 9 | | (g) Notwithstanding any other provision of this Article, | 10 | | the initial survivor's annuity for a survivor of a participant | 11 | | who first serves as a judge after January 1, 2011 (the | 12 | | effective date of Public Act 96-889) but before the effective | 13 | | date of this amendatory Act of the 97th General Assembly shall | 14 | | be in the amount of 66 2/3% of the annuity received or earned | 15 | | by the decedent, and shall be increased (1) on each January 1 | 16 | | occurring on or after the commencement of the annuity if
the | 17 | | deceased participant died while receiving a retirement | 18 | | annuity, or (2) in other cases,
on each January 1 occurring on | 19 | | or after the first anniversary of
the commencement of the | 20 | | annuity, but in no event prior to age 67, by an amount equal to | 21 | | 3% or the annual unadjusted percentage increase in the consumer | 22 | | price index-u as determined by the Public Pension Division of | 23 | | the Department of Insurance under subsection (b-10) (b-5) of | 24 | | Section 18-125, whichever is less, of the survivor's annuity | 25 | | then being paid. | 26 | | (h) Notwithstanding any other provision of this Article, |
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| 1 | | the initial survivor's annuity for a survivor of a participant | 2 | | who first serves as a judge on or after the effective date of | 3 | | this amendatory Act of the 97th General Assembly shall be in | 4 | | the amount of 66 2/3% of the annuity received or earned by the | 5 | | decedent, and shall be increased (1) on each January 1 | 6 | | occurring on or after the commencement of the annuity if
the | 7 | | deceased participant died while receiving a retirement | 8 | | annuity, or (2) in other cases,
on each January 1 occurring on | 9 | | or after the first anniversary of
the commencement of the | 10 | | annuity, but in no event prior to age 67, by an amount equal to | 11 | | 3% or one-half the annual unadjusted percentage increase (but | 12 | | not less than zero) in the consumer price index-u as determined | 13 | | by the Public Pension Division of the Department of Insurance | 14 | | under subsection (b-10) of Section 18-125, whichever is less, | 15 | | of the originally granted survivor's annuity. | 16 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| 17 | | (40 ILCS 5/18-133) (from Ch. 108 1/2, par. 18-133)
| 18 | | Sec. 18-133. Financing; employee contributions.
| 19 | | (a) Effective July 1, 1967, each participant is required to | 20 | | contribute
7 1/2% of each payment of salary toward the | 21 | | retirement annuity. Such
contributions shall continue during | 22 | | the entire time the participant is in
service, with the | 23 | | following exceptions:
| 24 | | (1) Contributions for the retirement annuity are not | 25 | | required on salary
received after 18 years of service by |
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| 1 | | persons who were participants before
January 2, 1954.
| 2 | | (2) A participant who continues to serve as a judge | 3 | | after becoming
eligible to receive the maximum rate of | 4 | | annuity may elect, through a written
direction filed with | 5 | | the Board, to discontinue contributing to the System.
Any | 6 | | such option elected by a judge shall be irrevocable unless | 7 | | prior to
January 1, 2000, and while continuing to
serve as | 8 | | judge, the judge (A) files with the Board a letter | 9 | | cancelling the
direction to discontinue contributing to | 10 | | the System and requesting that such
contributing resume, | 11 | | and (B) pays into the System an amount equal to the total
| 12 | | of the discontinued contributions plus interest thereon at | 13 | | 5% per annum.
Service credits earned in any other | 14 | | "participating system" as defined in
Article 20 of this | 15 | | Code shall be considered for purposes of determining a
| 16 | | judge's eligibility to discontinue contributions under | 17 | | this subdivision
(a)(2).
| 18 | | (3) A participant who (i) has attained age 60, (ii) | 19 | | continues to serve
as a judge after becoming eligible to | 20 | | receive the maximum rate of annuity,
and (iii) has not | 21 | | elected to discontinue contributing to the System under
| 22 | | subdivision (a)(2) of this Section (or has revoked any such | 23 | | election) may
elect, through a written direction filed with | 24 | | the Board, to make contributions
to the System based only | 25 | | on the amount of the increases in salary received by
the | 26 | | judge on or after the date of the election, rather than the |
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| 1 | | total salary
received. If a judge who is making | 2 | | contributions to the System on the
effective date of this | 3 | | amendatory Act of the 91st General Assembly makes an
| 4 | | election to limit contributions under this subdivision | 5 | | (a)(3) within 90 days
after that effective date, the | 6 | | election shall be deemed to become
effective on that | 7 | | effective date and the judge shall be entitled to receive a
| 8 | | refund of any excess contributions paid to the System | 9 | | during that 90-day
period; any other election under this | 10 | | subdivision (a)(3) becomes effective
on the first of the | 11 | | month following the date of the election. An election to
| 12 | | limit contributions under this subdivision (a)(3) is | 13 | | irrevocable. Service
credits earned in any other | 14 | | participating system as defined in Article 20 of
this Code | 15 | | shall be considered for purposes of determining a judge's | 16 | | eligibility
to make an election under this subdivision | 17 | | (a)(3).
| 18 | | (b) Beginning July 1, 1969, each participant is required to | 19 | | contribute
1% of each payment of salary towards the automatic | 20 | | increase in annuity
provided in Section 18-125.1. However, such | 21 | | contributions need not be made
by any participant who has | 22 | | elected prior to September 15, 1969, not to be
subject to the | 23 | | automatic increase in annuity provisions.
| 24 | | (c) Effective July 13, 1953, each married participant | 25 | | subject to the
survivor's annuity provisions is required to | 26 | | contribute 2 1/2% of each
payment of salary, whether or not he |
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| 1 | | or she is required to make any other
contributions under this | 2 | | Section. Such contributions shall be made
concurrently with the | 3 | | contributions made for annuity purposes.
| 4 | | (d) Notwithstanding any other provision of this Article, | 5 | | the required contributions for a participant who first becomes | 6 | | a participant on or after January 1, 2011 shall not be based on | 7 | | any salary in excess of the applicable annually-adjusted | 8 | | limitation on salary used for determining exceed the | 9 | | contributions that would be due under this Article if that | 10 | | participant's final average salary highest salary for annuity | 11 | | purposes were $106,800, plus any increase in that amount under | 12 | | Section 18-125. | 13 | | (Source: P.A. 96-1490, eff. 1-1-11.)
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