(40 ILCS 5/16-136.1) (from Ch. 108 1/2, par. 16-136.1)
(Text of Section WITH the changes made by P.A. 98-599, which has been held unconstitutional)
Sec. 16-136.1. Annual increase for certain annuitants. (a) Any annuitant receiving a retirement annuity on June 30, 1969 and
any member retiring after June 30, 1969 shall be eligible for the annual
increases provided under this Section provided the annuitant is ineligible
for the automatic annual increase in annuity provided under Section
16-133.1, and provided further that (1) retirement occurred at age 55 or over
and was based on 5 or more years of creditable service or (2) if
retirement occurred prior to age 55, the retirement annuity
was based on 20 or more years of creditable service.
(b) This subsection (b) is subject to subsections (b-1) and (b-2). An annuitant entitled to increases under this Section shall be entitled
to the initial increase as of the later of: (1) January 1 following
attainment of age 65, (2) January 1 following the first anniversary
of retirement, or (3) the first day of the month following receipt of
the required qualifying contribution from the annuitant. The initial monthly
increase shall be computed on the basis of the period elapsed between
the later of the date of last retirement or attainment of age 50 and the
date of qualification for the initial increase, at the rate of 1 1/2% of
the original monthly retirement annuity per year for periods
prior to September 1, 1971, and at the rate of 2% per year for periods between
September 1, 1971 and September 1, 1978, and at the rate of 3% per year
for periods thereafter.
An annuitant who has received an initial increase under this Section,
shall be entitled, on each January 1 following the granting of the
initial increase, to an increase of 3% of the original monthly retirement
annuity for increases granted prior to January 1, 1990, and equal to 3%
of the total annuity, including previous increases under this Section, for
increases granted on or after January 1, 1990. The original monthly
retirement annuity for computations under this subsection
(b) shall be considered to be $83.34 for any annuitant entitled to benefits
under Section 16-134. The minimum original disability retirement annuity
for computations under this subsection (b) shall be considered to be
$33.34 per month for any annuitant retired on account of disability.
(b-1) Notwithstanding subsection (b), but subject to the provisions of subsection (b-2), all automatic increases payable under subsection (b) 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) $1,000 multiplied by the number of years of creditable service upon which the annuity is based; however, in the case of an initial increase under subsection (b) that is subject to this subsection, if more than one year has elapsed from the date of retirement to the effective date of the initial
increase under this Section, the applicable percentage shall be the sum of the percentages for each such elapsed year. Beginning January 1, 2016, the $1,000 referred to in item (2) of this subsection (b-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 (b-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 (b-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. (b-2) Notwithstanding subsections (b) and (b-1), for an active or inactive Tier 1 member who is subject to this Section and 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 (b-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.
(c) An annuitant who otherwise qualifies for annual
increases under this Section must make a one-time payment of
1% of the monthly final average salary for each full year of the creditable
service forming the basis of the retirement annuity or, if the
retirement annuity was not computed using final average salary, 1% of the
original monthly retirement annuity for each full year of service
forming the basis of the retirement annuity.
(d) In addition to other increases which may be provided by this Section,
regardless of creditable service, annuitants not meeting
the service requirements of Section 16-133.1 and whose retirement annuity
began on or before January 1, 1971 shall receive, on January
1, 1981, an increase in the retirement annuity then being paid
of one dollar per month for each year of creditable service forming
the basis of the retirement allowance. On January 1, 1982, annuitants
whose retirement annuity began on or before January 1, 1977, shall receive
an increase in the retirement annuity then being paid of one dollar per
month for each year of creditable service.
On January 1, 1987, any annuitant whose retirement annuity began
on or before January 1, 1977, shall receive an increase in the monthly
retirement annuity equal to 8¢ per year of creditable service times the
number of years that have elapsed since the annuity began.
(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. 16-136.1.
Annual increase for certain annuitants.
(a) Any annuitant receiving a retirement annuity on June 30, 1969 and
any member retiring after June 30, 1969 shall be eligible for the annual
increases provided under this Section provided the annuitant is ineligible
for the automatic annual increase in annuity provided under Section
16-133.1, and provided further that (1) retirement occurred at age 55 or over
and was based on 5 or more years of creditable service or (2) if
retirement occurred prior to age 55, the retirement annuity
was based on 20 or more years of creditable service.
(b) An annuitant entitled to increases under this Section shall be entitled
to the initial increase as of the later of: (1) January 1 following
attainment of age 65, (2) January 1 following the first anniversary
of retirement, or (3) the first day of the month following receipt of
the required qualifying contribution from the annuitant. The initial monthly
increase shall be computed on the basis of the period elapsed between
the later of the date of last retirement or attainment of age 50 and the
date of qualification for the initial increase, at the rate of 1 1/2% of
the original monthly retirement annuity per year for periods
prior to September 1, 1971, and at the rate of 2% per year for periods between
September 1, 1971 and September 1, 1978, and at the rate of 3% per year
for periods thereafter.
An annuitant who has received an initial increase under this Section,
shall be entitled, on each January 1 following the granting of the
initial increase, to an increase of 3% of the original monthly retirement
annuity for increases granted prior to January 1, 1990, and equal to 3%
of the total annuity, including previous increases under this Section, for
increases granted on or after January 1, 1990. The original monthly
retirement annuity for computations under this subsection
(b) shall be considered to be $83.34 for any annuitant entitled to benefits
under Section 16-134. The minimum original disability retirement annuity
for computations under this subsection (b) shall be considered to be
$33.34 per month for any annuitant retired on account of disability.
(c) An annuitant who otherwise qualifies for annual
increases under this Section must make a one-time payment of
1% of the monthly final average salary for each full year of the creditable
service forming the basis of the retirement annuity or, if the
retirement annuity was not computed using final average salary, 1% of the
original monthly retirement annuity for each full year of service
forming the basis of the retirement annuity.
(d) In addition to other increases which may be provided by this Section,
regardless of creditable service, annuitants not meeting
the service requirements of Section 16-133.1 and whose retirement annuity
began on or before January 1, 1971 shall receive, on January
1, 1981, an increase in the retirement annuity then being paid
of one dollar per month for each year of creditable service forming
the basis of the retirement allowance. On January 1, 1982, annuitants
whose retirement annuity began on or before January 1, 1977, shall receive
an increase in the retirement annuity then being paid of one dollar per
month for each year of creditable service.
On January 1, 1987, any annuitant whose retirement annuity began
on or before January 1, 1977, shall receive an increase in the monthly
retirement annuity equal to 8¢ per year of creditable service times the
number of years that have elapsed since the annuity began.
(Source: P.A. 86-273.)
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