Full Text of HB5377 97th General Assembly
HB5377 97TH GENERAL ASSEMBLY |
| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012 HB5377 Introduced 2/15/2012, by Rep. Michael W. Tryon SYNOPSIS AS INTRODUCED: |
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40 ILCS 5/2-119.1 | from Ch. 108 1/2, par. 2-119.1 |
40 ILCS 5/14-114 | from Ch. 108 1/2, par. 14-114 |
40 ILCS 5/15-136 | from Ch. 108 1/2, par. 15-136 |
40 ILCS 5/16-133.1 | from Ch. 108 1/2, par. 16-133.1 |
40 ILCS 5/16-136.1 | from Ch. 108 1/2, par. 16-136.1 |
40 ILCS 5/18-125.1 | from Ch. 108 1/2, par. 18-125.1 |
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Amends the Illinois Pension Code in relation to the 5 State-funded retirement systems. Decreases annual increases (COLAs) for certain persons who first became participants before January 1, 2011 and did not begin to receive a retirement annuity before the effective date of this amendatory Act. Provides that the automatic annual increases shall be (1) 3% of the first $50,000 of the annual total annuity
payable at the time of the increase, and (2) if the annual total annuity
payable at the time of the increase exceeds $50,000, a percentage of that excess equal to the lesser of 3% or one-half of the annual unadjusted percentage increase (but not less than zero) in the Consumer Price Index for All Urban Consumers.
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| | FISCAL NOTE ACT MAY APPLY | | PENSION IMPACT NOTE ACT MAY APPLY |
| | A BILL FOR |
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| 1 | | AN ACT concerning public employee benefits.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Pension Code is amended by changing | 5 | | Sections 2-119.1, 14-114, 15-136, 16-133.1, 16-136.1, and | 6 | | 18-125.1 as follows:
| 7 | | (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
| 8 | | Sec. 2-119.1. Automatic increase in retirement annuity.
| 9 | | (a) A participant who retires after June 30, 1967, and who | 10 | | has not
received an initial increase under this Section before | 11 | | the effective date
of this amendatory Act of 1991, shall, in | 12 | | January or July next following
the first anniversary of | 13 | | retirement, whichever occurs first, and in the same
month of | 14 | | each year thereafter, but in no event prior to age 60, have the | 15 | | amount
of the originally granted retirement annuity increased | 16 | | as follows: for each
year through 1971, 1 1/2%; for each year | 17 | | from 1972 through 1979, 2%; and for
1980 and each year | 18 | | thereafter, 3%. Annuitants who have received an initial
| 19 | | increase under this subsection prior to the effective date of | 20 | | this amendatory
Act of 1991 shall continue to receive their | 21 | | annual increases in the same month
as the initial increase.
| 22 | | (b) Beginning January 1, 1990, for eligible participants | 23 | | who remain
in service after attaining 20 years of creditable |
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| 1 | | service, the 3% increases
provided under subsection (a) shall | 2 | | begin to accrue on the January 1 next
following the date upon | 3 | | which the participant (1) attains age 55, or (2)
attains 20 | 4 | | years of creditable service, whichever occurs later, and shall
| 5 | | continue to accrue while the participant remains in service; | 6 | | such increases
shall become payable on January 1 or July 1, | 7 | | whichever occurs first, next
following the first anniversary of | 8 | | retirement. For any person who has service
credit in the System | 9 | | for the entire period from January 15, 1969 through
December | 10 | | 31, 1992, regardless of the date of termination of service, the
| 11 | | reference to age 55 in clause (1) of this subsection (b) shall | 12 | | be deemed to
mean age 50.
| 13 | | This subsection (b) does not apply to any person who first | 14 | | becomes a
member of the System after the effective date of this | 15 | | amendatory Act of
the 93rd General Assembly.
| 16 | | (b-5) Notwithstanding any other provision of this Article, | 17 | | a participant who first becomes a participant on or after | 18 | | January 1, 2011 (the effective date of Public Act 96-889) | 19 | | shall, in January or July next following the first anniversary | 20 | | of retirement, whichever occurs first, and in the same month of | 21 | | each year thereafter, but in no event prior to age 67, have the | 22 | | amount of the retirement annuity then being paid increased by | 23 | | 3% or the annual unadjusted percentage increase in the Consumer | 24 | | Price Index for All Urban Consumers as determined by the Public | 25 | | Pension Division of the Department of Insurance under | 26 | | subsection (a) of Section 2-108.1, whichever is less. |
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| 1 | | (b-10) Notwithstanding any other provision of this | 2 | | Article, for a person who first became a participant of this | 3 | | System before January 1, 2011 and who did not begin to receive | 4 | | a retirement annuity from the System before the effective date | 5 | | of this amendatory Act of the 97th General Assembly, the | 6 | | automatic annual increases payable
under this Section shall be | 7 | | calculated as follows: (1) 3% of the first $50,000 of the | 8 | | annual total annuity
payable at the time of the increase, and | 9 | | (2) if the annual total annuity
payable at the time of the | 10 | | increase exceeds $50,000, a percentage of that excess equal to | 11 | | the lesser of 3% or one-half of the annual unadjusted | 12 | | percentage increase (but not less than zero) in the Consumer | 13 | | Price Index for All Urban Consumers (United States city | 14 | | average, all
items, 1982-84 = 100) for the 12 months ending | 15 | | with the previous September, as determined by the Public | 16 | | Pension Division of the Department of Insurance. | 17 | | (c) The foregoing provisions relating to automatic | 18 | | increases are not
applicable to a participant who retires | 19 | | before having made contributions
(at the rate prescribed in | 20 | | Section 2-126) for automatic increases for less
than the | 21 | | equivalent of one full year. However, in order to be eligible | 22 | | for
the automatic increases, such a participant may make | 23 | | arrangements to pay
to the system the amount required to bring | 24 | | the total contributions for the
automatic increase to the | 25 | | equivalent of one year's contributions based upon
his or her | 26 | | last salary.
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| 1 | | (d) A participant who terminated service prior to July 1, | 2 | | 1967, with at
least 14 years of service is entitled to an | 3 | | increase in retirement annuity
beginning January, 1976, and to | 4 | | additional increases in January of each
year thereafter.
| 5 | | The initial increase shall be 1 1/2% of the originally | 6 | | granted retirement
annuity multiplied by the number of full | 7 | | years that the annuitant was in
receipt of such annuity prior | 8 | | to January 1, 1972, plus 2% of the originally
granted | 9 | | retirement annuity for each year after that date. The | 10 | | subsequent
annual increases shall be at the rate of 2% of the | 11 | | originally granted
retirement annuity for each year through | 12 | | 1979 and at the rate of 3% for
1980 and thereafter.
| 13 | | (e) Beginning January 1, 1990, and except as provided in | 14 | | subsections (b-5) and (b-10), all automatic annual increases | 15 | | payable
under this Section shall be calculated as a percentage | 16 | | of the total annuity
payable at the time of the increase, | 17 | | including previous increases granted
under this Article.
| 18 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
| 19 | | (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
| 20 | | Sec. 14-114. Automatic increase in retirement annuity.
| 21 | | (a) Any person receiving a retirement annuity under this | 22 | | Article who
retires having attained age 60, or who retires | 23 | | before age 60 having at
least 35 years of creditable service, | 24 | | or who retires on or after January
1, 2001 at an age which, | 25 | | when added to the number of years of his or her
creditable |
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| 1 | | service, equals at least 85, shall, on January 1 next
following | 2 | | the first full year of retirement, have the amount of the then | 3 | | fixed
and payable monthly retirement annuity increased 3%. Any | 4 | | person receiving a
retirement annuity under this Article who | 5 | | retires before attainment of age 60
and with less than (i) 35 | 6 | | years of creditable service if retirement
is before January 1, | 7 | | 2001, or (ii) the number of years of creditable service
which, | 8 | | when added to the member's age, would equal 85, if retirement | 9 | | is on
or after January 1, 2001, shall have the amount of the | 10 | | fixed and payable
retirement annuity increased by 3% on the | 11 | | January 1 occurring on or next
following (1) attainment of age | 12 | | 60, or (2) the first anniversary of retirement,
whichever | 13 | | occurs later. However, for persons who receive the alternative
| 14 | | retirement annuity under Section 14-110, references in this | 15 | | subsection (a) to
attainment of age 60 shall be deemed to refer | 16 | | to attainment of age 55. For a
person receiving early | 17 | | retirement incentives under Section 14-108.3 whose
retirement | 18 | | annuity began after January 1, 1992 pursuant to an extension | 19 | | granted
under subsection (e) of that Section, the first | 20 | | anniversary of retirement shall
be deemed to be January 1, | 21 | | 1993.
For a person who retires on or after June 28, 2001 and on | 22 | | or before October 1, 2001,
and whose retirement annuity is | 23 | | calculated, in whole or in part, under Section
14-110 or | 24 | | subsection (g) or (h) of Section 14-108, the first anniversary | 25 | | of
retirement shall be deemed to be January 1, 2002.
| 26 | | On each January 1 following the date of the initial |
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| 1 | | increase under this
subsection, the employee's monthly | 2 | | retirement annuity shall be increased
by an additional 3%.
| 3 | | Beginning January 1, 1990, and except as provided in | 4 | | subsection (a-5) all automatic annual increases payable under
| 5 | | this Section shall be calculated as a percentage of the total | 6 | | annuity
payable at the time of the increase, including previous | 7 | | increases granted
under this Article.
| 8 | | (a-5) Notwithstanding any other provision of this Article, | 9 | | for a person who first became a participant of this System | 10 | | before January 1, 2011 and who did not begin to receive a | 11 | | retirement annuity from the System before the effective date of | 12 | | this amendatory Act of the 97th General Assembly, the automatic | 13 | | annual increases payable
under this Section shall be calculated | 14 | | as follows: (1) 3% of the first $50,000 of the annual total | 15 | | annuity
payable at the time of the increase, and (2) if the | 16 | | annual total annuity
payable at the time of the increase | 17 | | exceeds $50,000, a percentage of that excess equal to the | 18 | | lesser of 3% or one-half of the annual unadjusted percentage | 19 | | increase (but not less than zero) in the Consumer Price Index | 20 | | for All Urban Consumers (United States city average, all
items, | 21 | | 1982-84 = 100) for the 12 months ending with the previous | 22 | | September, as determined by the Public Pension Division of the | 23 | | Department of Insurance. | 24 | | (b) The provisions of subsection (a) of this Section shall | 25 | | be
applicable to an employee only if the employee makes the | 26 | | additional
contributions required after December 31, 1969 for |
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| 1 | | the purpose of the
automatic increases for not less than the | 2 | | equivalent of one full year.
If an employee becomes an | 3 | | annuitant before his additional contributions
equal one full | 4 | | year's contributions based on his salary at the date of
| 5 | | retirement, the employee may pay the necessary balance of the
| 6 | | contributions to the system, without interest, and be eligible | 7 | | for the
increasing annuity authorized by this Section.
| 8 | | (c) The provisions of subsection (a) of this Section shall | 9 | | not be
applicable to any annuitant who is on retirement on | 10 | | December 31, 1969, and
thereafter returns to State service, | 11 | | unless the member has established at
least one year of | 12 | | additional creditable service following reentry into service.
| 13 | | (d) In addition to other increases which may be provided by | 14 | | this Section,
on January 1, 1981 any annuitant who was | 15 | | receiving a retirement annuity
on or before January 1, 1971 | 16 | | shall have his retirement annuity then being
paid increased $1 | 17 | | per month for each year of creditable service. On January
1, | 18 | | 1982, any annuitant who began receiving a retirement annuity on | 19 | | or
before January 1, 1977, shall have his retirement annuity | 20 | | then being paid
increased $1 per month for each year of | 21 | | creditable service.
| 22 | | On January 1, 1987, any annuitant who began receiving a | 23 | | retirement
annuity on or before January 1, 1977, shall have the | 24 | | monthly retirement annuity
increased by an amount equal to 8˘ | 25 | | per year of creditable service times the
number of years that | 26 | | have elapsed since the annuity began.
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| 1 | | (e) Every person who receives the alternative retirement | 2 | | annuity under
Section 14-110 and who is eligible to receive the | 3 | | 3% increase under subsection
(a) on January 1, 1986, shall also | 4 | | receive on that date a one-time increase
in retirement annuity | 5 | | equal to the difference between (1) his actual
retirement | 6 | | annuity on that date, including any increases received under
| 7 | | subsection (a), and (2) the amount of retirement annuity he | 8 | | would have
received on that date if the amendments to | 9 | | subsection (a) made by Public
Act 84-162 had been in effect | 10 | | since the date of his retirement.
| 11 | | (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
| 12 | | 92-651, eff. 7-11-02.)
| 13 | | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
| 14 | | Sec. 15-136. Retirement annuities - Amount. The provisions | 15 | | of this
Section 15-136 apply only to those participants who are | 16 | | participating in the
traditional benefit package or the | 17 | | portable benefit package and do not
apply to participants who | 18 | | are participating in the self-managed plan.
| 19 | | (a) The amount of a participant's retirement annuity, | 20 | | expressed in the form
of a single-life annuity, shall be | 21 | | determined by whichever of the following
rules is applicable | 22 | | and provides the largest annuity:
| 23 | | Rule 1: The retirement annuity shall be 1.67% of final rate | 24 | | of earnings for
each of the first 10 years of service, 1.90% | 25 | | for each of the next 10 years of
service, 2.10% for each year |
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| 1 | | of service in excess of 20 but not exceeding 30,
and 2.30% for | 2 | | each year in excess of 30; or for persons who retire on or
| 3 | | after January 1, 1998, 2.2% of the final rate of earnings for | 4 | | each year of
service.
| 5 | | Rule 2: The retirement annuity shall be the sum of the | 6 | | following,
determined from amounts credited to the participant | 7 | | in accordance with the
actuarial tables and the prescribed rate | 8 | | of interest in effect at the
time the retirement annuity | 9 | | begins:
| 10 | | (i) the normal annuity which can be provided on an | 11 | | actuarially
equivalent basis, by the accumulated normal | 12 | | contributions as of
the date the annuity begins;
| 13 | | (ii) an annuity from employer contributions of an | 14 | | amount equal to that
which can be provided on an | 15 | | actuarially equivalent basis from the accumulated
normal | 16 | | contributions made by the participant under Section | 17 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other | 18 | | accumulated normal contributions made by
the participant; | 19 | | and
| 20 | | (iii) the annuity that can be provided on an | 21 | | actuarially equivalent basis
from the entire contribution | 22 | | made by the participant under Section 15-113.3.
| 23 | | With respect to a police officer or firefighter who retires | 24 | | on or after
August 14, 1998, the accumulated normal | 25 | | contributions taken into account under
clauses (i) and (ii) of | 26 | | this Rule 2 shall include the additional normal
contributions |
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| 1 | | made by the police officer or firefighter under Section
| 2 | | 15-157(a).
| 3 | | The amount of a retirement annuity calculated under this | 4 | | Rule 2 shall
be computed solely on the basis of the | 5 | | participant's accumulated normal
contributions, as specified | 6 | | in this Rule and defined in Section 15-116.
Neither an employee | 7 | | or employer contribution for early retirement under
Section | 8 | | 15-136.2 nor any other employer contribution shall be used in | 9 | | the
calculation of the amount of a retirement annuity under | 10 | | this Rule 2.
| 11 | | This amendatory Act of the 91st General Assembly is a | 12 | | clarification of
existing law and applies to every participant | 13 | | and annuitant without regard to
whether status as an employee | 14 | | terminates before the effective date of this
amendatory Act.
| 15 | | This Rule 2 does not apply to a person who first becomes an | 16 | | employee under this Article on or after July 1, 2005.
| 17 | | Rule 3: The retirement annuity of a participant who is | 18 | | employed
at least one-half time during the period on which his | 19 | | or her final rate of
earnings is based, shall be equal to the | 20 | | participant's years of service
not to exceed 30, multiplied by | 21 | | (1) $96 if the participant's final rate
of earnings is less | 22 | | than $3,500, (2) $108 if the final rate of earnings is
at least | 23 | | $3,500 but less than $4,500, (3) $120 if the final rate of | 24 | | earnings
is at least $4,500 but less than $5,500, (4) $132 if | 25 | | the final rate
of earnings is at least $5,500 but less than | 26 | | $6,500, (5)
$144 if the final rate of earnings is at least |
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| 1 | | $6,500 but less than
$7,500, (6) $156 if the final rate of | 2 | | earnings is at least $7,500 but less
than $8,500, (7) $168 if | 3 | | the final rate of earnings is at least $8,500 but
less than | 4 | | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
| 5 | | more, except that the annuity for those persons having made an | 6 | | election under
Section 15-154(a-1) shall be calculated and | 7 | | payable under the portable
retirement benefit program pursuant | 8 | | to the provisions of Section 15-136.4.
| 9 | | Rule 4: A participant who is at least age 50 and has 25 or | 10 | | more years of
service as a police officer or firefighter, and a | 11 | | participant who is age 55 or
over and has at least 20 but less | 12 | | than 25 years of service as a police officer
or firefighter, | 13 | | shall be entitled to a retirement annuity of 2 1/4% of the
| 14 | | final rate of earnings for each of the first 10 years of | 15 | | service as a police
officer or firefighter, 2 1/2% for each of | 16 | | the next 10 years of service as a
police officer or | 17 | | firefighter, and 2 3/4% for each year of service as a police
| 18 | | officer or firefighter in excess of 20. The retirement annuity | 19 | | for all other
service shall be computed under Rule 1.
| 20 | | For purposes of this Rule 4, a participant's service as a | 21 | | firefighter
shall also include the following:
| 22 | | (i) service that is performed while the person is an | 23 | | employee under
subsection (h) of Section 15-107; and
| 24 | | (ii) in the case of an individual who was a | 25 | | participating employee
employed in the fire department of | 26 | | the University of Illinois's
Champaign-Urbana campus |
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| 1 | | immediately prior to the elimination of that fire
| 2 | | department and who immediately after the elimination of | 3 | | that fire department
transferred to another job with the | 4 | | University of Illinois, service performed
as an employee of | 5 | | the University of Illinois in a position other than police
| 6 | | officer or firefighter, from the date of that transfer | 7 | | until the employee's
next termination of service with the | 8 | | University of Illinois.
| 9 | | Rule 5: The retirement annuity of a participant who elected | 10 | | early
retirement under the provisions of Section 15-136.2 and | 11 | | who, on or before
February 16, 1995, brought administrative | 12 | | proceedings pursuant to the
administrative rules adopted by the | 13 | | System to challenge the calculation of his
or her retirement | 14 | | annuity shall be the sum of the following, determined from
| 15 | | amounts credited to the participant in accordance with the | 16 | | actuarial tables and
the prescribed rate of interest in effect | 17 | | at the time the retirement annuity
begins:
| 18 | | (i) the normal annuity which can be provided on an | 19 | | actuarially equivalent
basis, by the accumulated normal | 20 | | contributions as of the date the annuity
begins; and
| 21 | | (ii) an annuity from employer contributions of an | 22 | | amount equal to that
which can be provided on an | 23 | | actuarially equivalent basis from the accumulated
normal | 24 | | contributions made by the participant under Section | 25 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other | 26 | | accumulated normal contributions made by the
participant; |
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| 1 | | and
| 2 | | (iii) an annuity which can be provided on an | 3 | | actuarially equivalent basis
from the employee | 4 | | contribution for early retirement under Section 15-136.2, | 5 | | and
an annuity from employer contributions of an amount | 6 | | equal to that which can be
provided on an actuarially | 7 | | equivalent basis from the employee contribution for
early | 8 | | retirement under Section 15-136.2.
| 9 | | In no event shall a retirement annuity under this Rule 5 be | 10 | | lower than the
amount obtained by adding (1) the monthly amount | 11 | | obtained by dividing the
combined employee and employer | 12 | | contributions made under Section 15-136.2 by the
System's | 13 | | annuity factor for the age of the participant at the beginning | 14 | | of the
annuity payment period and (2) the amount equal to the | 15 | | participant's annuity if
calculated under Rule 1, reduced under | 16 | | Section 15-136(b) as if no
contributions had been made under | 17 | | Section 15-136.2.
| 18 | | With respect to a participant who is qualified for a | 19 | | retirement annuity under
this Rule 5 whose retirement annuity | 20 | | began before the effective date of this
amendatory Act of the | 21 | | 91st General Assembly, and for whom an employee
contribution | 22 | | was made under Section 15-136.2, the System shall recalculate | 23 | | the
retirement annuity under this Rule 5 and shall pay any | 24 | | additional amounts due
in the manner provided in Section | 25 | | 15-186.1 for benefits mistakenly set too low.
| 26 | | The amount of a retirement annuity calculated under this |
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| 1 | | Rule 5 shall be
computed solely on the basis of those | 2 | | contributions specifically set forth in
this Rule 5. Except as | 3 | | provided in clause (iii) of this Rule 5, neither an
employee | 4 | | nor employer contribution for early retirement under Section | 5 | | 15-136.2,
nor any other employer contribution, shall be used in | 6 | | the calculation of the
amount of a retirement annuity under | 7 | | this Rule 5.
| 8 | | The General Assembly has adopted the changes set forth in | 9 | | Section 25 of this
amendatory Act of the 91st General Assembly | 10 | | in recognition that the decision of
the Appellate Court for the | 11 | | Fourth District in Mattis v. State Universities
Retirement | 12 | | System et al. might be deemed to give some right to the | 13 | | plaintiff in
that case. The changes made by Section 25 of this | 14 | | amendatory Act of the 91st
General Assembly are a legislative | 15 | | implementation of the decision of the
Appellate Court for the | 16 | | Fourth District in Mattis v. State Universities
Retirement | 17 | | System et al. with respect to that plaintiff.
| 18 | | The changes made by Section 25 of this amendatory Act of | 19 | | the 91st General
Assembly apply without regard to whether the | 20 | | person is in service as an
employee on or after its effective | 21 | | date.
| 22 | | (b) The retirement annuity provided under Rules 1 and 3 | 23 | | above shall be
reduced by 1/2 of 1% for each month the | 24 | | participant is under age 60 at the
time of retirement. However, | 25 | | this reduction shall not apply in the following
cases:
| 26 | | (1) For a disabled participant whose disability |
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| 1 | | benefits have been
discontinued because he or she has | 2 | | exhausted eligibility for disability
benefits under clause | 3 | | (6) of Section 15-152;
| 4 | | (2) For a participant who has at least the number of | 5 | | years of service
required to retire at any age under | 6 | | subsection (a) of Section 15-135; or
| 7 | | (3) For that portion of a retirement annuity which has | 8 | | been provided on
account of service of the participant | 9 | | during periods when he or she performed
the duties of a | 10 | | police officer or firefighter, if these duties were | 11 | | performed
for at least 5 years immediately preceding the | 12 | | date the retirement annuity
is to begin.
| 13 | | (c) The maximum retirement annuity provided under Rules 1, | 14 | | 2, 4,
and 5
shall be the lesser of (1) the annual limit of | 15 | | benefits as specified in
Section 415 of the Internal Revenue | 16 | | Code of 1986, as such Section may be
amended from time to time | 17 | | and as such benefit limits shall be adjusted by
the | 18 | | Commissioner of Internal Revenue, and (2) 80% of final rate of
| 19 | | earnings.
| 20 | | (d) An annuitant whose status as an employee terminates | 21 | | after August 14,
1969 shall receive automatic increases in his | 22 | | or her retirement annuity as
follows:
| 23 | | Effective January 1 immediately following the date the | 24 | | retirement annuity
begins, the annuitant shall receive an | 25 | | increase in his or her monthly
retirement annuity of 0.125% of | 26 | | the monthly retirement annuity provided under
Rule 1, Rule 2, |
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| 1 | | Rule 3, Rule 4, or Rule 5, contained in this
Section, | 2 | | multiplied by
the number of full months which elapsed from the | 3 | | date the retirement annuity
payments began to January 1, 1972, | 4 | | plus 0.1667% of such annuity, multiplied by
the number of full | 5 | | months which elapsed from January 1, 1972, or the date the
| 6 | | retirement annuity payments began, whichever is later, to | 7 | | January 1, 1978, plus
0.25% of such annuity multiplied by the | 8 | | number of full months which elapsed
from January 1, 1978, or | 9 | | the date the retirement annuity payments began,
whichever is | 10 | | later, to the effective date of the increase.
| 11 | | The annuitant shall receive an increase in his or her | 12 | | monthly retirement
annuity on each January 1 thereafter during | 13 | | the annuitant's life of 3% of
the monthly annuity provided | 14 | | under Rule 1, Rule 2, Rule 3, Rule 4, or
Rule 5 contained
in | 15 | | this Section. The change made under this subsection by P.A. | 16 | | 81-970 is
effective January 1, 1980 and applies to each | 17 | | annuitant whose status as
an employee terminates before or | 18 | | after that date.
| 19 | | Beginning January 1, 1990, and except as provided in | 20 | | subsection (d-5), all automatic annual increases payable under
| 21 | | this Section shall be calculated as a percentage of the total | 22 | | annuity
payable at the time of the increase, including all | 23 | | increases previously
granted under this Article.
| 24 | | The change made in this subsection by P.A. 85-1008 is | 25 | | effective January
26, 1988, and is applicable without regard to | 26 | | whether status as an employee
terminated before that date.
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| 1 | | (d-5) Notwithstanding any other provision of this Article, | 2 | | for a person who first became a participant of this System | 3 | | before January 1, 2011 and who did not begin to receive a | 4 | | retirement annuity from the System before the effective date of | 5 | | this amendatory Act of the 97th General Assembly, the automatic | 6 | | annual increases payable
under this Section shall be calculated | 7 | | as follows: (1) 3% of the first $50,000 of the annual total | 8 | | annuity
payable at the time of the increase, and (2) if the | 9 | | annual total annuity
payable at the time of the increase | 10 | | exceeds $50,000, a percentage of that excess equal to the | 11 | | lesser of 3% or one-half of the annual unadjusted percentage | 12 | | increase (but not less than zero) in the Consumer Price Index | 13 | | for All Urban Consumers (United States city average, all
items, | 14 | | 1982-84 = 100) for the 12 months ending with the previous | 15 | | September, as determined by the Public Pension Division of the | 16 | | Department of Insurance. | 17 | | (e) If, on January 1, 1987, or the date the retirement | 18 | | annuity payment
period begins, whichever is later, the sum of | 19 | | the retirement annuity
provided under Rule 1 or Rule 2 of this | 20 | | Section
and the automatic annual increases provided under the | 21 | | preceding subsection
or Section 15-136.1, amounts to less than | 22 | | the retirement
annuity which would be provided by Rule 3, the | 23 | | retirement
annuity shall be increased as of January 1, 1987, or | 24 | | the date the
retirement annuity payment period begins, | 25 | | whichever is later, to the amount
which would be provided by | 26 | | Rule 3 of this Section. Such increased
amount shall be |
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| 1 | | considered as the retirement annuity in determining
benefits | 2 | | provided under other Sections of this Article. This paragraph
| 3 | | applies without regard to whether status as an employee | 4 | | terminated before the
effective date of this amendatory Act of | 5 | | 1987, provided that the annuitant was
employed at least | 6 | | one-half time during the period on which the final rate of
| 7 | | earnings was based.
| 8 | | (f) A participant is entitled to such additional annuity as | 9 | | may be provided
on an actuarially equivalent basis, by any | 10 | | accumulated
additional contributions to his or her credit. | 11 | | However,
the additional contributions made by the participant | 12 | | toward the automatic
increases in annuity provided under this | 13 | | Section shall not be taken into
account in determining the | 14 | | amount of such additional annuity.
| 15 | | (g) If, (1) by law, a function of a governmental unit, as | 16 | | defined by Section
20-107 of this Code, is transferred in whole | 17 | | or in part to an employer, and (2)
a participant transfers | 18 | | employment from such governmental unit to such employer
within | 19 | | 6 months after the transfer of the function, and (3) the sum of | 20 | | (A) the
annuity payable to the participant under Rule 1, 2, or | 21 | | 3 of this Section (B)
all proportional annuities payable to the | 22 | | participant by all other retirement
systems covered by Article | 23 | | 20, and (C) the initial primary insurance amount to
which the | 24 | | participant is entitled under the Social Security Act, is less | 25 | | than
the retirement annuity which would have been payable if | 26 | | all of the
participant's pension credits validated under |
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| 1 | | Section 20-109 had been validated
under this system, a | 2 | | supplemental annuity equal to the difference in such
amounts | 3 | | shall be payable to the participant.
| 4 | | (h) On January 1, 1981, an annuitant who was receiving
a | 5 | | retirement annuity on or before January 1, 1971 shall have his | 6 | | or her
retirement annuity then being paid increased $1 per | 7 | | month for
each year of creditable service. On January 1, 1982, | 8 | | an annuitant whose
retirement annuity began on or before | 9 | | January 1, 1977, shall have his or her
retirement annuity then | 10 | | being paid increased $1 per month for each year of
creditable | 11 | | service.
| 12 | | (i) On January 1, 1987, any annuitant whose retirement | 13 | | annuity began on or
before January 1, 1977, shall have the | 14 | | monthly retirement annuity increased by
an amount equal to 8˘ | 15 | | per year of creditable service times the number of years
that | 16 | | have elapsed since the annuity began.
| 17 | | (Source: P.A. 93-347, eff. 7-24-03; 94-4, eff. 6-1-05.)
| 18 | | (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
| 19 | | Sec. 16-133.1. Automatic annual increase in annuity.
| 20 | | (a) Each member with creditable service and retiring on or | 21 | | after August 26,
1969 is entitled to the automatic annual | 22 | | increases in annuity provided under
this Section while | 23 | | receiving a retirement annuity or disability retirement
| 24 | | annuity from the system.
| 25 | | An annuitant shall first be entitled to an initial increase |
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| 1 | | under this
Section on the January 1 next following the first | 2 | | anniversary of retirement,
or January 1 of the year next | 3 | | following attainment of age 61, whichever is
later. At such | 4 | | time, the system shall pay an initial increase determined as
| 5 | | follows and in accordance with subsection (a-5) :
| 6 | | (1) 1.5% of the originally granted retirement annuity | 7 | | or disability
retirement annuity multiplied by the number | 8 | | of years elapsed, if any, from the date of retirement
until | 9 | | January 1, 1972, plus
| 10 | | (2) 2% of the originally granted annuity multiplied by | 11 | | the number of
years elapsed, if any, from the date of | 12 | | retirement or January
1, 1972, whichever is later, until | 13 | | January 1, 1978, plus
| 14 | | (3) 3% of the originally granted annuity multiplied by | 15 | | the number
of years elapsed from the date of retirement or | 16 | | January 1,
1978, whichever is later, until the effective | 17 | | date of the initial
increase.
| 18 | | However, the initial annual increase calculated under this | 19 | | Section for the
recipient of a disability retirement annuity | 20 | | granted under Section 16-149.2
shall be reduced by an amount | 21 | | equal to the total of all increases in that
annuity received | 22 | | under Section 16-149.5 (but not exceeding 100% of the amount
of | 23 | | the initial increase otherwise provided under this Section).
| 24 | | Following the initial increase, automatic annual increases | 25 | | in annuity shall
be payable on each January 1 thereafter during | 26 | | the lifetime of the annuitant,
determined as a percentage of |
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| 1 | | the originally granted retirement annuity
or disability | 2 | | retirement annuity for increases granted prior to January
1, | 3 | | 1990, and calculated as a percentage of the total amount of | 4 | | annuity,
including previous increases under this Section, for | 5 | | increases granted on
or after January 1, 1990, as follows: 1.5% | 6 | | for periods prior to January 1,
1972, 2% for periods after | 7 | | December 31, 1971 and prior to January 1, 1978,
and 3% for | 8 | | periods after December 31, 1977.
| 9 | | (a-5) Notwithstanding any other provision of this Article, | 10 | | for a person who first became a participant of this System | 11 | | before January 1, 2011 and who did not begin to receive a | 12 | | retirement annuity from the System before the effective date of | 13 | | this amendatory Act of the 97th General Assembly, the automatic | 14 | | annual increases payable
under this Section shall be calculated | 15 | | as follows: (1) 3% of the first $50,000 of the annual total | 16 | | annuity
payable at the time of the increase, and (2) if the | 17 | | annual total annuity
payable at the time of the increase | 18 | | exceeds $50,000, a percentage of that excess equal to the | 19 | | lesser of 3% or one-half of the annual unadjusted percentage | 20 | | increase (but not less than zero) in the Consumer Price Index | 21 | | for All Urban Consumers (United States city average, all
items, | 22 | | 1982-84 = 100) for the 12 months ending with the previous | 23 | | September, as determined by the Public Pension Division of the | 24 | | Department of Insurance. | 25 | | (b) The automatic annual increases in annuity provided | 26 | | under this Section
shall not be applicable unless a member has |
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| 1 | | made contributions toward such
increases for a period | 2 | | equivalent to one full year of creditable service.
If a member | 3 | | contributes for service performed after August 26, 1969 but
the | 4 | | member becomes an annuitant before such contributions amount to | 5 | | one
full year's contributions based on the salary at the date | 6 | | of retirement,
he or she may pay the necessary balance of the | 7 | | contributions to the system
and be eligible for the automatic | 8 | | annual increases in annuity provided under
this Section.
| 9 | | (c) Each member shall make contributions toward the cost of | 10 | | the automatic
annual increases in annuity as provided under | 11 | | Section 16-152.
| 12 | | (d) An annuitant receiving a retirement annuity or | 13 | | disability retirement
annuity on July 1, 1969, who subsequently | 14 | | re-enters service as a teacher
is eligible for the automatic | 15 | | annual increases in annuity provided under
this Section if he | 16 | | or she renders at least one year of creditable service
| 17 | | following the latest re-entry.
| 18 | | (e) In addition to the automatic annual increases in | 19 | | annuity provided
under this Section, an annuitant who meets the | 20 | | service requirements of this
Section and whose retirement | 21 | | annuity or disability retirement annuity began
on or before | 22 | | January 1, 1971 shall receive, on January 1, 1981, an increase
| 23 | | in the annuity then being paid of one dollar per month for each | 24 | | year of
creditable service. On January 1, 1982, an annuitant | 25 | | whose retirement
annuity or disability retirement annuity | 26 | | began on or before January 1, 1977
shall receive an increase in |
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| 1 | | the annuity then being paid of one dollar per
month for each | 2 | | year of creditable service.
| 3 | | On January 1, 1987, any annuitant whose retirement annuity | 4 | | began
on or before January 1, 1977, shall receive an increase | 5 | | in the monthly
retirement annuity equal to 8˘ per year of | 6 | | creditable service times the
number of years that have elapsed | 7 | | since the annuity began.
| 8 | | (Source: P.A. 91-927, eff. 12-14-00.)
| 9 | | (40 ILCS 5/16-136.1) (from Ch. 108 1/2, par. 16-136.1)
| 10 | | Sec. 16-136.1. Annual increase for certain annuitants. (a) | 11 | | Any annuitant receiving a retirement annuity on June 30, 1969 | 12 | | and
any member retiring after June 30, 1969 shall be eligible | 13 | | for the annual
increases provided under this Section provided | 14 | | the annuitant is ineligible
for the automatic annual increase | 15 | | in annuity provided under Section
16-133.1, and provided | 16 | | further that (1) retirement occurred at age 55 or over
and was | 17 | | based on 5 or more years of creditable service or (2) if
| 18 | | retirement occurred prior to age 55, the retirement annuity
was | 19 | | based on 20 or more years of creditable service.
| 20 | | (b) An annuitant entitled to increases under this Section | 21 | | shall be entitled
to the initial increase as of the later of: | 22 | | (1) January 1 following
attainment of age 65, (2) January 1 | 23 | | following the first anniversary
of retirement, or (3) the first | 24 | | day of the month following receipt of
the required qualifying | 25 | | contribution from the annuitant. The initial monthly
increase |
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| 1 | | shall be computed on the basis of the period elapsed between
| 2 | | the later of the date of last retirement or attainment of age | 3 | | 50 and the
date of qualification for the initial increase, at | 4 | | the rate of 1 1/2% of
the original monthly retirement annuity | 5 | | per year for periods
prior to September 1, 1971, and at the | 6 | | rate of 2% per year for periods between
September 1, 1971 and | 7 | | September 1, 1978, and at the rate of 3% per year
for periods | 8 | | thereafter , subject to the provisions of subsection (b-5) .
| 9 | | Subject to the provisions of subsection (b-5), an An | 10 | | annuitant who has received an initial increase under this | 11 | | Section,
shall be entitled, on each January 1 following the | 12 | | granting of the
initial increase, to an increase of 3% of the | 13 | | original monthly retirement
annuity for increases granted | 14 | | prior to January 1, 1990, and equal to 3%
of the total annuity, | 15 | | including previous increases under this Section, for
increases | 16 | | granted on or after January 1, 1990. The original monthly
| 17 | | retirement annuity for computations under this subsection
(b) | 18 | | shall be considered to be $83.34 for any annuitant entitled to | 19 | | benefits
under Section 16-134. The minimum original disability | 20 | | retirement annuity
for computations under this subsection (b) | 21 | | shall be considered to be
$33.34 per month for any annuitant | 22 | | retired on account of disability.
| 23 | | (b-5) Notwithstanding any other provision of this Article, | 24 | | for a person who first became a participant of this System | 25 | | before January 1, 2011 and who did not begin to receive a | 26 | | retirement annuity from the System before the effective date of |
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| 1 | | this amendatory Act of the 97th General Assembly, the automatic | 2 | | annual increases payable
under this Section shall be calculated | 3 | | as follows: (1) 3% of the first $50,000 of the annual total | 4 | | annuity
payable at the time of the increase, and (2) if the | 5 | | annual total annuity
payable at the time of the increase | 6 | | exceeds $50,000, a percentage of that excess equal to the | 7 | | lesser of 3% or one-half of the annual unadjusted percentage | 8 | | increase (but not less than zero) in the Consumer Price Index | 9 | | for All Urban Consumers (United States city average, all
items, | 10 | | 1982-84 = 100) for the 12 months ending with the previous | 11 | | September, as determined by the Public Pension Division of the | 12 | | Department of Insurance. | 13 | | (c) An annuitant who otherwise qualifies for annual
| 14 | | increases under this Section must make a one-time payment of
1% | 15 | | of the monthly final average salary for each full year of the | 16 | | creditable
service forming the basis of the retirement annuity | 17 | | or, if the
retirement annuity was not computed using final | 18 | | average salary, 1% of the
original monthly retirement annuity | 19 | | for each full year of service
forming the basis of the | 20 | | retirement annuity.
| 21 | | (d) In addition to other increases which may be provided by | 22 | | this Section,
regardless of creditable service, annuitants not | 23 | | meeting
the service requirements of Section 16-133.1 and whose | 24 | | retirement annuity
began on or before January 1, 1971 shall | 25 | | receive, on January
1, 1981, an increase in the retirement | 26 | | annuity then being paid
of one dollar per month for each year |
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| 1 | | of creditable service forming
the basis of the retirement | 2 | | allowance. On January 1, 1982, annuitants
whose retirement | 3 | | annuity began on or before January 1, 1977, shall receive
an | 4 | | increase in the retirement annuity then being paid of one | 5 | | dollar per
month for each year of creditable service.
| 6 | | On January 1, 1987, any annuitant whose retirement annuity | 7 | | began
on or before January 1, 1977, shall receive an increase | 8 | | in the monthly
retirement annuity equal to 8˘ per year of | 9 | | creditable service times the
number of years that have elapsed | 10 | | since the annuity began.
| 11 | | (Source: P.A. 86-273.)
| 12 | | (40 ILCS 5/18-125.1) (from Ch. 108 1/2, par. 18-125.1)
| 13 | | Sec. 18-125.1. Automatic increase in retirement annuity. | 14 | | (a) A participant who
retires from service after June 30, | 15 | | 1969, shall, in January of the year next
following the year in | 16 | | which the first anniversary of retirement occurs, and in
| 17 | | January of each year thereafter, have the amount of his or her | 18 | | originally
granted retirement annuity increased as follows: | 19 | | for each year up to and
including 1971, 1 1/2%; for each year | 20 | | from 1972 through 1979 inclusive, 2%; and
for 1980 and each | 21 | | year thereafter, 3%.
| 22 | | (b) Notwithstanding any other provision of this Article, a | 23 | | retirement annuity for a participant who first serves as a | 24 | | judge on or after January 1, 2011 (the effective date of Public | 25 | | Act 96-889) shall be increased in January of the year next
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| 1 | | following the year in which the first anniversary of retirement | 2 | | occurs, but in no event prior to age 67, and in
January of each | 3 | | year thereafter, by an amount equal to 3% or the annual | 4 | | percentage increase in the consumer price index-u as determined | 5 | | by the Public Pension Division of the Department of Insurance | 6 | | under subsection (b-5) of Section 18-125, whichever is less, of | 7 | | the retirement annuity then being paid. | 8 | | (c) Notwithstanding any other provision of this Article, | 9 | | for a person who first became a participant of this System | 10 | | before January 1, 2011 and who did not begin to receive a | 11 | | retirement annuity from the System before the effective date of | 12 | | this amendatory Act of the 97th General Assembly, the automatic | 13 | | annual increases payable
under this Section shall be calculated | 14 | | as follows: (1) 3% of the first $50,000 of the annual total | 15 | | annuity
payable at the time of the increase, and (2) if the | 16 | | annual total annuity
payable at the time of the increase | 17 | | exceeds $50,000, a percentage of that excess equal to the | 18 | | lesser of 3% or one-half of the annual unadjusted percentage | 19 | | increase (but not less than zero) in the Consumer Price Index | 20 | | for All Urban Consumers (United States city average, all
items, | 21 | | 1982-84 = 100) for the 12 months ending with the previous | 22 | | September, as determined by the Public Pension Division of the | 23 | | Department of Insurance. | 24 | | (d) This Section is not applicable to a participant who | 25 | | retires before he
or she has made contributions at the rate | 26 | | prescribed in Section 18-133 for
automatic increases for not |
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| 1 | | less than the equivalent of one full year, unless
such a | 2 | | participant arranges to pay the system the amount required to | 3 | | bring
the total contributions for the automatic increase to the | 4 | | equivalent of
one year's contribution based upon his or her | 5 | | last year's salary.
| 6 | | This Section is applicable to all participants in service | 7 | | after June 30,
1969 unless a participant has elected, prior to | 8 | | September 1,
1969, in a written direction filed with the board | 9 | | not to be subject to
the provisions of this Section. Any | 10 | | participant in service on or after
July 1, 1992 shall have the | 11 | | option of electing prior to April 1, 1993,
in a written | 12 | | direction filed with the board, to be covered by the provisions | 13 | | of
the 1969 amendatory Act. Such participant shall be required | 14 | | to make the
aforesaid additional contributions with compound | 15 | | interest at 4% per annum.
| 16 | | (e) Subject to the limitation in subsection (b) or (c), if | 17 | | applicable, a Any participant who has become eligible to | 18 | | receive the maximum rate of
annuity and who resumes service as | 19 | | a judge after receiving a retirement
annuity under this Article | 20 | | shall have the amount of his or her
retirement annuity | 21 | | increased by 3% of the originally granted annuity amount
for | 22 | | each year of such resumed service, beginning in January of the | 23 | | year
next following the date of such resumed service, upon | 24 | | subsequent
termination of such resumed service.
| 25 | | (f) Beginning January 1, 1990, and except as provided in | 26 | | subsection (b) or (c), all automatic annual increases payable
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| 1 | | under this Section shall be calculated as a percentage of the | 2 | | total annuity
payable at the time of the increase, including | 3 | | previous increases granted
under this Article.
| 4 | | (Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
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