(40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 14-114. Automatic increase in retirement annuity.
(a) This subsection (a) is subject to subsections (a-1) and (a-2) of this Section. Any person receiving a retirement annuity under this Article who
retires having attained age 60, or who retires before age 60 having at
least 35 years of creditable service, or who retires on or after January
1, 2001 at an age which, when added to the number of years of his or her
creditable service, equals at least 85, shall, on January 1 next
following the first full year of retirement, have the amount of the then fixed
and payable monthly retirement annuity increased 3%. Any person receiving a
retirement annuity under this Article who retires before attainment of age 60
and with less than (i) 35 years of creditable service if retirement
is before January 1, 2001, or (ii) the number of years of creditable service
which, when added to the member's age, would equal 85, if retirement is on
or after January 1, 2001, shall have the amount of the fixed and payable
retirement annuity increased by 3% on the January 1 occurring on or next
following (1) attainment of age 60, or (2) the first anniversary of retirement,
whichever occurs later. However, for persons who receive the alternative
retirement annuity under Section 14-110, references in this subsection (a) to
attainment of age 60 shall be deemed to refer to attainment of age 55. For a
person receiving early retirement incentives under Section 14-108.3 whose
retirement annuity began after January 1, 1992 pursuant to an extension granted
under subsection (e) of that Section, the first anniversary of retirement shall
be deemed to be January 1, 1993.
For a person who retires on or after June 28, 2001 and on or before October 1, 2001,
and whose retirement annuity is calculated, in whole or in part, under Section
14-110 or subsection (g) or (h) of Section 14-108, the first anniversary of
retirement shall be deemed to be January 1, 2002.
On each January 1 following the date of the initial increase under this
subsection, the employee's monthly retirement annuity shall be increased
by an additional 3%.
Beginning January 1, 1990, all automatic annual increases payable under
this Section shall be calculated as a percentage of the total annuity
payable at the time of the increase, including previous increases granted
under this Article.
(a-1) Notwithstanding subsection (a), but subject to the provisions of subsection (a-2), all automatic increases payable under subsection (a) on or after the effective date of this amendatory Act of the 98th General Assembly shall be calculated as 3% of the lesser of (1) the total annuity
payable at the time of the increase, including previous
increases granted, or (2) $800 ($1,000 for portions of the annuity based
on service as a noncovered employee) multiplied by
the number of years of creditable service upon which the
annuity is based. Beginning January 1, 2016, the $800 ($1,000 for portions of the annuity based
on service as a noncovered employee) referred in item (2) of this subsection (a-1) shall be increased on each January 1 by the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u for the 12 months ending with the preceding September; these adjustments shall be cumulative and compounded.
For the purposes of this subsection (a-1), "consumer price index-u" means the index published by the Bureau of Labor Statistics of the United States Department of Labor that measures the average change in prices of goods and services purchased by all urban consumers, United States city average, all items, 1982-84 = 100. The new dollar amount resulting from each annual adjustment shall be determined by the Public Pension Division of the Department of Insurance and made available to the System by November 1 of each year. This subsection (a-1) is applicable without regard to whether the person is in service on or after the effective date of this amendatory Act of the 98th General Assembly. (a-2) Notwithstanding subsections (a) and (a-1), for an active or inactive Tier 1 member who has not begun to receive a retirement annuity under this Article before July 1, 2014: (1) the second automatic annual increase payable |
For the purposes of Section 1-103.1, this subsection (a-2) is applicable without regard to whether the person is in service on or after the effective date of this amendatory Act of the 98th General Assembly.
(b) The provisions of subsection (a) of this Section shall be
applicable to an employee only if the employee makes the additional
contributions required after December 31, 1969 for the purpose of the
automatic increases for not less than the equivalent of one full year.
If an employee becomes an annuitant before his additional contributions
equal one full year's contributions based on his salary at the date of
retirement, the employee may pay the necessary balance of the
contributions to the system, without interest, and be eligible for the
increasing annuity authorized by this Section.
(c) The provisions of subsection (a) of this Section shall not be
applicable to any annuitant who is on retirement on December 31, 1969, and
thereafter returns to State service, unless the member has established at
least one year of additional creditable service following reentry into service.
(d) In addition to other increases which may be provided by this Section,
on January 1, 1981 any annuitant who was receiving a retirement annuity
on or before January 1, 1971 shall have his retirement annuity then being
paid increased $1 per month for each year of creditable service. On January
1, 1982, any annuitant who began receiving a retirement annuity on or
before January 1, 1977, shall have his retirement annuity then being paid
increased $1 per month for each year of creditable service.
On January 1, 1987, any annuitant who began receiving a retirement
annuity on or before January 1, 1977, shall have the monthly retirement annuity
increased by an amount equal to 8¢ per year of creditable service times the
number of years that have elapsed since the annuity began.
(e) Every person who receives the alternative retirement annuity under
Section 14-110 and who is eligible to receive the 3% increase under subsection
(a) on January 1, 1986, shall also receive on that date a one-time increase
in retirement annuity equal to the difference between (1) his actual
retirement annuity on that date, including any increases received under
subsection (a), and (2) the amount of retirement annuity he would have
received on that date if the amendments to subsection (a) made by Public
Act 84-162 had been in effect since the date of his retirement.
(Source: P.A. 98-599, eff. 6-1-14.)
(Text of Section WITHOUT the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 14-114.
Automatic increase in retirement annuity.
(a) Any person receiving a retirement annuity under this Article who
retires having attained age 60, or who retires before age 60 having at
least 35 years of creditable service, or who retires on or after January
1, 2001 at an age which, when added to the number of years of his or her
creditable service, equals at least 85, shall, on January 1 next
following the first full year of retirement, have the amount of the then fixed
and payable monthly retirement annuity increased 3%. Any person receiving a
retirement annuity under this Article who retires before attainment of age 60
and with less than (i) 35 years of creditable service if retirement
is before January 1, 2001, or (ii) the number of years of creditable service
which, when added to the member's age, would equal 85, if retirement is on
or after January 1, 2001, shall have the amount of the fixed and payable
retirement annuity increased by 3% on the January 1 occurring on or next
following (1) attainment of age 60, or (2) the first anniversary of retirement,
whichever occurs later. However, for persons who receive the alternative
retirement annuity under Section 14-110, references in this subsection (a) to
attainment of age 60 shall be deemed to refer to attainment of age 55. For a
person receiving early retirement incentives under Section 14-108.3 whose
retirement annuity began after January 1, 1992 pursuant to an extension granted
under subsection (e) of that Section, the first anniversary of retirement shall
be deemed to be January 1, 1993.
For a person who retires on or after June 28, 2001 and on or before October 1, 2001,
and whose retirement annuity is calculated, in whole or in part, under Section
14-110 or subsection (g) or (h) of Section 14-108, the first anniversary of
retirement shall be deemed to be January 1, 2002.
On each January 1 following the date of the initial increase under this
subsection, the employee's monthly retirement annuity shall be increased
by an additional 3%.
Beginning January 1, 1990, all automatic annual increases payable under
this Section shall be calculated as a percentage of the total annuity
payable at the time of the increase, including previous increases granted
under this Article.
(b) The provisions of subsection (a) of this Section shall be
applicable to an employee only if the employee makes the additional
contributions required after December 31, 1969 for the purpose of the
automatic increases for not less than the equivalent of one full year.
If an employee becomes an annuitant before his additional contributions
equal one full year's contributions based on his salary at the date of
retirement, the employee may pay the necessary balance of the
contributions to the system, without interest, and be eligible for the
increasing annuity authorized by this Section.
(c) The provisions of subsection (a) of this Section shall not be
applicable to any annuitant who is on retirement on December 31, 1969, and
thereafter returns to State service, unless the member has established at
least one year of additional creditable service following reentry into service.
(d) In addition to other increases which may be provided by this Section,
on January 1, 1981 any annuitant who was receiving a retirement annuity
on or before January 1, 1971 shall have his retirement annuity then being
paid increased $1 per month for each year of creditable service. On January
1, 1982, any annuitant who began receiving a retirement annuity on or
before January 1, 1977, shall have his retirement annuity then being paid
increased $1 per month for each year of creditable service.
On January 1, 1987, any annuitant who began receiving a retirement
annuity on or before January 1, 1977, shall have the monthly retirement annuity
increased by an amount equal to 8¢ per year of creditable service times the
number of years that have elapsed since the annuity began.
(e) Every person who receives the alternative retirement annuity under
Section 14-110 and who is eligible to receive the 3% increase under subsection
(a) on January 1, 1986, shall also receive on that date a one-time increase
in retirement annuity equal to the difference between (1) his actual
retirement annuity on that date, including any increases received under
subsection (a), and (2) the amount of retirement annuity he would have
received on that date if the amendments to subsection (a) made by Public
Act 84-162 had been in effect since the date of his retirement.
(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
92-651, eff. 7-11-02.)
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