Illinois General Assembly - Illinois Compiled Statutes

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40 ILCS 5/14-108

(40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)

(Text of Section WITH the changes made by P.A. 98-599, which has been
held unconstitutional)

Sec. 14-108. Amount of retirement annuity.

A member who has contributed to the System for at least 12 months shall
be entitled to a prior service annuity for each year of certified prior
service credited to him, except that a member shall receive 1/3 of the prior
service annuity for each year of service for which contributions have been
made and all of such annuity shall be payable after the member has made
contributions for a period of 3 years.  Proportionate amounts shall be payable
for service of less than a full year after completion of at least 12 months.

The total period of service to be considered in establishing the measure
of prior service annuity shall include service credited in the Teachers'
Retirement System of the State of Illinois and the State Universities
Retirement System for which contributions have been made by the member to
such systems; provided that at least 1 year of the total period of 3 years
prescribed for the allowance of a full measure of prior service annuity
shall consist of membership service in this system for which credit has been
granted.

(a) In the case of a member who retires on or after January 1, 1998 and
is a noncovered employee, the retirement annuity for membership service and
prior service shall be 2.2% of final average compensation for each year of
service.  Any service credit established as a covered employee shall be
computed as stated in
paragraph (b).

(b) In the case of a member who retires on or after January 1, 1998
and is a covered employee, the retirement annuity for membership
service and prior service shall be computed as stated in paragraph (a) for
all service credit established as a noncovered employee; for service credit
established as a covered employee it shall be 1.67% of final average
compensation for each year of service.

(c) For a member
retiring after attaining age 55 but before age 60 with at least 30 but less
than 35 years of creditable service if retirement is before January 1, 2001, or
with at least 25 but less than 30 years of creditable service if retirement is
on or after January 1, 2001, the retirement annuity shall be reduced by 1/2
of 1% for each month that the member's age is under age 60 at the time of
retirement. For members to whom subsection (c) of Section 14-107 applies, the references to age 55 and 60 in this subsection (c) are increased as provided in subsection (c) of Section 14-107.

(d) A retirement annuity shall not exceed 75% of final average compensation,
subject to such extension as may result from the application of Section 14-114
or Section 14-115.

(e) The retirement annuity payable to any covered employee who is a member
of the System and in service on January 1, 1969, or in service thereafter
in 1969 as a result of legislation enacted by the Illinois General Assembly
transferring the member to State employment from county employment in a
county Department of Public Aid in counties of 3,000,000 or more population,
under a plan of coordination with the Old Age, Survivors and Disability
provisions thereof, if not fully insured for Old Age Insurance payments
under the Federal Old Age, Survivors and Disability Insurance provisions
at the date of acceptance of a retirement annuity, shall not be less than
the amount for which the member would have been eligible if coordination
were not applicable.

(f) The retirement annuity payable to any covered employee who is a member
of the System and in service on January 1, 1969, or in service thereafter
in 1969 as a result of the legislation designated in the immediately preceding
paragraph, if fully insured for Old Age Insurance payments under the Federal
Social Security Act at the date of acceptance of a retirement annuity, shall
not be less than an amount which when added to the Primary Insurance Benefit
payable to the member upon attainment of age 65 under such Federal Act,
will equal the annuity which would otherwise be payable if the coordinated
plan of coverage were not applicable.

(g) In the case of a member who is a noncovered employee, the retirement
annuity for membership service as a security employee of the Department of
Corrections or security employee of the Department of Human Services shall
be:  if retirement occurs on or after January 1, 2001, 3% of final average
compensation for each year of creditable service; or if retirement occurs
before January 1, 2001, 1.9% of final average compensation for each of the
first 10 years of service, 2.1% for each of the next 10 years of
service, 2.25% for each year of service in excess of 20 but not
exceeding 30, and 2.5% for each year in excess of 30; except that the
annuity may be calculated under subsection (a) rather than this subsection (g)
if the resulting annuity is greater.

(h) In the case of a member who is a covered employee, the retirement
annuity for membership service as a security employee of the Department of
Corrections or security employee of the Department of Human Services shall
be:  if retirement occurs on or after January 1, 2001, 2.5% of final average
compensation for each year of creditable service; if retirement occurs before
January 1, 2001, 1.67% of final average compensation 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 in excess of 30.

(i) For the purposes of this Section and Section 14-133 of this Act,
the term "security employee of the Department of Corrections" and the term
"security employee of the Department of Human Services" shall have the
meanings ascribed to them in subsection (c) of Section 14-110.

(j) The retirement annuity computed pursuant to paragraphs (g) or (h)
shall be applicable only to those security employees of the Department of
Corrections and security employees of the Department of Human Services who
have at least 20 years of membership service and who are not eligible for
the alternative retirement annuity provided under Section 14-110.  However,
persons transferring to this System under Section 14-108.2 or 14-108.2c
who have service credit under Article 16 of this Code may count such service
toward establishing their eligibility under the 20-year service requirement of
this subsection; but such service may be used only for establishing such
eligibility, and not for the purpose of increasing or calculating any benefit.

(k) (Blank).

(l) The changes to this Section made by this amendatory Act of 1997
(changing certain retirement annuity formulas from a stepped rate to a flat
rate) apply to members who retire on or after January 1, 1998, without regard
to whether employment terminated before the effective date of this amendatory
Act of 1997.  An annuity shall not be calculated in steps by using the new flat
rate for some steps and the superseded stepped rate for other steps of the same
type of service.

(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. 14-108.

Amount of retirement annuity.

A member who has contributed to the System for at least 12 months shall
be entitled to a prior service annuity for each year of certified prior
service credited to him, except that a member shall receive 1/3 of the prior
service annuity for each year of service for which contributions have been
made and all of such annuity shall be payable after the member has made
contributions for a period of 3 years.  Proportionate amounts shall be payable
for service of less than a full year after completion of at least 12 months.

The total period of service to be considered in establishing the measure
of prior service annuity shall include service credited in the Teachers'
Retirement System of the State of Illinois and the State Universities
Retirement System for which contributions have been made by the member to
such systems; provided that at least 1 year of the total period of 3 years
prescribed for the allowance of a full measure of prior service annuity
shall consist of membership service in this system for which credit has been
granted.

(a) In the case of a member who retires on or after January 1, 1998 and
is a noncovered employee, the retirement annuity for membership service and
prior service shall be 2.2% of final average compensation for each year of
service.  Any service credit established as a covered employee shall be
computed as stated in
paragraph (b).

(b) In the case of a member who retires on or after January 1, 1998
and is a covered employee, the retirement annuity for membership
service and prior service shall be computed as stated in paragraph (a) for
all service credit established as a noncovered employee; for service credit
established as a covered employee it shall be 1.67% of final average
compensation for each year of service.

(c) For a member
retiring after attaining age 55 but before age 60 with at least 30 but less
than 35 years of creditable service if retirement is before January 1, 2001, or
with at least 25 but less than 30 years of creditable service if retirement is
on or after January 1, 2001, the retirement annuity shall be reduced by 1/2
of 1% for each month that the member's age is under age 60 at the time of
retirement.

(d) A retirement annuity shall not exceed 75% of final average compensation,
subject to such extension as may result from the application of Section 14-114
or Section 14-115.

(e) The retirement annuity payable to any covered employee who is a member
of the System and in service on January 1, 1969, or in service thereafter
in 1969 as a result of legislation enacted by the Illinois General Assembly
transferring the member to State employment from county employment in a
county Department of Public Aid in counties of 3,000,000 or more population,
under a plan of coordination with the Old Age, Survivors and Disability
provisions thereof, if not fully insured for Old Age Insurance payments
under the Federal Old Age, Survivors and Disability Insurance provisions
at the date of acceptance of a retirement annuity, shall not be less than
the amount for which the member would have been eligible if coordination
were not applicable.

(f) The retirement annuity payable to any covered employee who is a member
of the System and in service on January 1, 1969, or in service thereafter
in 1969 as a result of the legislation designated in the immediately preceding
paragraph, if fully insured for Old Age Insurance payments under the Federal
Social Security Act at the date of acceptance of a retirement annuity, shall
not be less than an amount which when added to the Primary Insurance Benefit
payable to the member upon attainment of age 65 under such Federal Act,
will equal the annuity which would otherwise be payable if the coordinated
plan of coverage were not applicable.

(g) In the case of a member who is a noncovered employee, the retirement
annuity for membership service as a security employee of the Department of
Corrections or security employee of the Department of Human Services shall
be:  if retirement occurs on or after January 1, 2001, 3% of final average
compensation for each year of creditable service; or if retirement occurs
before January 1, 2001, 1.9% of final average compensation for each of the
first 10 years of service, 2.1% for each of the next 10 years of
service, 2.25% for each year of service in excess of 20 but not
exceeding 30, and 2.5% for each year in excess of 30; except that the
annuity may be calculated under subsection (a) rather than this subsection (g)
if the resulting annuity is greater.

(h) In the case of a member who is a covered employee, the retirement
annuity for membership service as a security employee of the Department of
Corrections or security employee of the Department of Human Services shall
be:  if retirement occurs on or after January 1, 2001, 2.5% of final average
compensation for each year of creditable service; if retirement occurs before
January 1, 2001, 1.67% of final average compensation 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 in excess of 30.

(i) For the purposes of this Section and Section 14-133 of this Act,
the term "security employee of the Department of Corrections" and the term
"security employee of the Department of Human Services" shall have the
meanings ascribed to them in subsection (c) of Section 14-110.

(j) The retirement annuity computed pursuant to paragraphs (g) or (h)
shall be applicable only to those security employees of the Department of
Corrections and security employees of the Department of Human Services who
have at least 20 years of membership service and who are not eligible for
the alternative retirement annuity provided under Section 14-110.  However,
persons transferring to this System under Section 14-108.2 or 14-108.2c
who have service credit under Article 16 of this Code may count such service
toward establishing their eligibility under the 20-year service requirement of
this subsection; but such service may be used only for establishing such
eligibility, and not for the purpose of increasing or calculating any benefit.

(k) (Blank).

(l) The changes to this Section made by this amendatory Act of 1997
(changing certain retirement annuity formulas from a stepped rate to a flat
rate) apply to members who retire on or after January 1, 1998, without regard
to whether employment terminated before the effective date of this amendatory
Act of 1997.  An annuity shall not be calculated in steps by using the new flat
rate for some steps and the superseded stepped rate for other steps of the same
type of service.

(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01.)