(40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
Sec. 8-138. Minimum annuities - Additional provisions.
(a) An employee who withdraws after age 65 or more with at least 20
years of service, for whom the amount of age and service and prior service
annuity combined is less than the amount stated in this Section, shall
from the date of withdrawal, instead of all annuities
otherwise provided, be entitled to receive an annuity for life of $150 a
year, plus 1 1/2% for each year of service, to and including 20 years, and
1 2/3% for each year of service over 20 years, of his highest average
annual salary for any 4 consecutive years within the last 10 years of
service immediately preceding the date of withdrawal.
An employee who withdraws after 20 or more years of service, before age
65, shall be entitled to such annuity, to begin not earlier than upon
attained age of 55 years if under such age at withdrawal, reduced by 2% for
each full year or fractional part thereof that his attained age is less
than 65, plus an additional 2% reduction for each full year or fractional
part thereof that his attained age when annuity is to begin is less than 60
so that the total reduction at age 55 shall be 30%.
(b) An employee who withdraws after July 1, 1957, at age 60 or over,
with 20 or more years of service, for whom the age and service and prior
service annuity combined, is less than the amount stated in this paragraph,
shall, from the date of withdrawal, instead of such annuities, be entitled
to receive an annuity for life equal to 1 2/3% for each year of service, of
the highest average annual salary for any 5 consecutive years within the
last 10 years of service immediately preceding the date of withdrawal;
provided, that in the case of any employee who withdraws on or after July
1, 1971, such employee age 60 or over with 20 or more years of service,
shall receive an annuity for life equal to 1.67% for each of the
first 10 years of service; 1.90% for each of the next 10 years of service;
2.10% for each year of service in excess of 20 but not exceeding 30; and
2.30% for each year of service in excess of 30, based on the highest
average annual salary for any 4 consecutive years within the last 10 years
of service immediately preceding the date of withdrawal.
An employee who withdraws after July 1, 1957 and before January 1,
1988, with 20 or more years of service, before age 60 years is entitled to
annuity, to begin not earlier than upon attained age of 55 years, if under
such age at withdrawal, as computed in the last preceding paragraph,
reduced 0.25% for each full month or fractional part thereof that his
attained age when annuity is to begin is less than 60 if the employee was
born before January 1, 1936, or 0.5% for each such month if the employee
was born on or after January 1, 1936.
Any employee born before January 1, 1936, who withdraws with 20 or more
years of service, and any employee with 20 or more years of service who
withdraws on or after January 1, 1988, may elect to receive, in lieu of any
other employee annuity provided in this Section, an annuity for life equal
to 1.80% for each of the first 10 years of service, 2.00% for each of the
next 10 years of service, 2.20% for each year of service in excess of 20
but not exceeding 30, and 2.40% for each year of service in excess of 30,
of the highest average annual salary for any 4 consecutive
years within the last 10 years of service immediately preceding the date of
withdrawal, to begin not earlier than upon attained age of 55 years, if
under such age at withdrawal, reduced 0.25% for each full month or fractional
part thereof that his attained age when annuity is to begin is less than
60; except that an employee retiring on or after January 1, 1988, at age
55 or over but less than age 60, having at least 35 years of service,
or an employee retiring on or after July 1, 1990, at age 55 or over but
less than age 60, having at least 30 years of service,
or an employee retiring on or after the effective date of this amendatory
Act of 1997, at age 55 or over but less than age 60, having at least 25 years
of service, shall not be subject to the reduction in retirement annuity
because of retirement below age 60.
However, in the case of an employee who retired on or after January 1,
1985 but before January 1, 1988, at age 55 or older and with at least 35
years of service, and who was subject under this subsection (b) to the
reduction in retirement annuity because of retirement below age 60, that
reduction shall cease to be effective January 1, 1991, and the retirement
annuity shall be recalculated accordingly.
Any employee who withdraws on or after July 1, 1990, with 20 or more years of
service, may elect to receive, in lieu of any other employee annuity provided
in this Section, an annuity for life equal to 2.20% for each year of service
if withdrawal is before January 1, 2002, or 2.40% for each year of
service if withdrawal is on or after January 1, 2002,
of the highest average annual salary for any 4 consecutive years within the
last 10 years of service immediately preceding the date of withdrawal, to begin
not earlier than upon attained
age of 55 years, if under such age at withdrawal, reduced 0.25% for each
full month or fractional part thereof that his attained age when annuity is
to begin is less than 60; except that an employee retiring at age 55 or
over but less than age 60, having at least 30 years of service, shall not
be subject to the reduction in retirement annuity because of retirement below
age 60.
Any employee who withdraws on or after the effective date of this
amendatory Act of 1997 with 20 or more years of service may elect to receive,
in lieu of any other employee annuity provided in this Section, an annuity for
life equal to 2.20% for each year of service, if withdrawal is before
January 1, 2002, or 2.40% for each year of service if withdrawal is
on or
after January 1, 2002, of the highest average annual
salary for any 4 consecutive years within the last 10 years of service
immediately preceding the date of withdrawal, to begin not earlier than upon
attainment of age 55 (age 50 if the employee has at least 30 years of service),
reduced 0.25% for each full month or remaining fractional part thereof that the
employee's attained age when annuity is to begin is less than 60; except that
an employee retiring at age 50 or over with at least 30 years of service or at
age 55 or over with at least 25 years of service shall not be subject to the
reduction in retirement annuity because of retirement below age 60.
The maximum annuity payable under part (a) and (b) of this Section shall
not exceed 70% of highest average annual salary in the case of an employee
who withdraws prior to July 1, 1971, 75% if withdrawal takes place on
or after July 1, 1971 and prior to January 1, 2002, or 80% if
withdrawal
takes place on or after January 1, 2002. For the
purpose of the minimum
annuity provided in this Section $1,500 is considered the minimum annual
salary for any year; and the maximum annual salary for the computation of such
annuity is $4,800 for any year before 1953, $6000 for the years 1953 to 1956,
inclusive, and the actual annual salary, as salary is defined in this Article,
for any year thereafter.
To preserve rights existing on December 31, 1959, for participants and
contributors on that date to the fund created by the Court and Law
Department Employees' Annuity Act, who became participants in the fund
provided for on January 1, 1960, the maximum annual salary to be considered
for such persons for the years 1955 and 1956 is $7,500.
(c) For an employee receiving disability benefit, his salary for annuity
purposes under paragraphs (a) and (b) of this Section, for all periods of
disability benefit subsequent to the year 1956, is the amount on which his
disability benefit was based.
(d) An employee with 20 or more years of service, whose entire disability
benefit credit period expires before
attainment of age 55 while still disabled for service, is entitled upon
withdrawal to the larger of (1) the minimum annuity provided above, assuming he
is then age 55, and reducing such annuity to its actuarial equivalent as of his
attained age on such date or (2) the annuity provided from his age and service
and prior service annuity credits.
(e) The minimum annuity provisions do not apply to any former municipal
employee receiving an annuity from the fund who re-enters service as a
municipal employee, unless he renders at least 3 years of additional
service after the date of re-entry.
(f) An employee in service on July 1, 1947, or who became a contributor
after July 1, 1947 and before attainment of age 70, who withdraws after age
65, with less than 20 years of service for whom the annuity has been fixed
under this Article shall, instead of the annuity so fixed, receive an
annuity as follows:
Such amount as he could have received had the accumulated amounts for
annuity been improved with interest at the effective rate to the date of
his withdrawal, or to attainment of age 70, whichever is earlier, and had
the city contributed to such earlier date for age and service annuity the
amount that it would have contributed had he been under age 65, after the
date his annuity was fixed in accordance with this Article, and assuming
his annuity were computed from such accumulations as of his age on such
earlier date. The annuity so computed shall not exceed the annuity which
would be payable under the other provisions of this Section if the employee
was credited with 20 years of service and would qualify for annuity thereunder.
(g) Instead of the annuity provided in this Article, an employee having
attained age 65 with at least 15 years of service who withdraws from
service on or after July 1, 1971 and whose annuity computed under other
provisions of this Article is less than the amount provided under this
paragraph, is entitled to a minimum annuity for life equal to 1% of the
highest average annual salary, as salary is defined and limited in this
Section for any 4 consecutive years within the last 10 years of service for
each year of service, plus the sum of $25 for each year of service. The
annuity shall not exceed 60% of such highest average annual salary.
(g-1) Instead of any other retirement annuity provided in this Article,
an employee who has at least 10 years of service and withdraws from service
on or after January 1, 1999 may elect to receive a retirement annuity for
life, beginning no earlier than upon attainment of age 60, equal to 2.2%
if withdrawal is before January 1, 2002, or 2.4% if withdrawal is on
or after January 1, 2002, of final average salary for each
year of service,
subject to a maximum of 75% of final average salary if withdrawal is before
January 1, 2002, or 80% if withdrawal is on or after January 1, 2002. For
the purpose of calculating this annuity, "final average salary" means the
highest average annual salary for any 4 consecutive years in the last 10 years
of service. Notwithstanding any provision of this subsection to the contrary, the "final average salary" for a participant that received credit under subsection (c) of Section 8-226 means the highest average salary for any 4 consecutive years (or any 8 consecutive years if the employee first became a participant on or after January 1, 2011) in the 10 years immediately prior to the leave of absence, and adding to that highest average salary, the product of (i) that highest average salary, (ii) the average percentage increase in the Consumer Price Index during each 12-month calendar year for the calendar years during the participant's leave of absence, and (iii) the length of the leave of absence in years, provided that this shall not exceed the participant's salary at the local labor organization. For purposes of this Section, the Consumer Price Index is the Consumer Price Index for All Urban Consumers for all items published by the United States Department of Labor.
(h) The minimum annuities provided under this Section shall be paid in
equal monthly installments.
(i) The amendatory provisions of part (b) and (g) of this Section shall
be effective July 1, 1971 and apply in the case of every qualifying
employee withdrawing on or after July 1, 1971.
(j) The amendatory provisions of this amendatory Act of 1985 (P.A.
84-23) relating to the discount of annuity because of retirement prior to
attainment of age 60, and to the retirement formula, for those born before
January 1, 1936, shall apply only to qualifying employees withdrawing on or
after July 18, 1985.
(j-1) The changes made to this Section by Public Act 92-609 (increasing the retirement
formula to 2.4% per year of service and increasing the maximum to 80%) apply
to persons who withdraw from service on or after January 1, 2002, regardless
of whether that withdrawal takes place before the effective date of that Act. In the case of a person who withdraws from service
on or after January 1, 2002 but begins to receive a retirement annuity before
July 1, 2002, the annuity
shall be recalculated, with the increase resulting from Public Act 92-609
accruing from the date the retirement annuity
began. The changes made by Public Act 92-609 control over the changes made
by Public Act 92-599, as provided in Section 95 of P.A. 92-609.
(k) Beginning on January 1, 1999, the minimum amount of employee's annuity
shall be $850 per month for life for the following classes of employees,
without regard to the fact that withdrawal occurred prior to the effective date
of this amendatory Act of 1998:
(1) any employee annuitant alive and receiving a life |