Illinois General Assembly - Illinois Compiled Statutes

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40 ILCS 5/9-133

(40 ILCS 5/9-133) (from Ch. 108 1/2, par. 9-133)

Sec. 9-133. Automatic increase in annuity.

(a) An employee who retired or retires from service after December 31, 1959,
having attained age 60 or more or, beginning January 1, 1991, having attained
30 or more years of creditable service, shall, in the month of January of the
year following the year in which the first anniversary of retirement occurs,
have his then fixed and payable monthly annuity increased by 1 1/2%, and such
first fixed annuity as granted at retirement increased by a further 1 1/2% in
January of each year thereafter.  Beginning with January of the year 1972, such
increases shall be at the rate of 2% in lieu of the aforesaid specified 1 1/2%.
Beginning with January of the year 1982, such increases shall be at the rate
of 3% in lieu of the aforesaid specified 2%.  Beginning January 1, 1998,
these increases shall be at the rate of 3% of the current amount of the
annuity, including any previous increases received under this Article,
without regard to whether the annuitant is in service on or after the
effective date of this amendatory Act of 1997.

An employee who retires on
annuity before age 60 and, beginning January 1, 1991, with less than 30 years
of creditable service shall receive such increases beginning with January of
the year immediately following the year in which he attains the age of 60
years.  An employee who retires on annuity before age 60 and before January 1,
1991, with at least 30 years of creditable service, shall be entitled to
receive the first increase under this subsection no later than January 1, 1993.

For an employee who, in accordance with the provisions of Section
9-108.1 of this Act, shall have become a member of the State System
established under Article 14 on February 1, 1974, the first such
automatic increase shall begin in January of 1975.

(b) Subsection (a) is not applicable to an employee retiring and receiving a
term annuity, as defined in this Act, nor to any otherwise qualified employee
who retires before he makes employee contributions (at the 1/2 of 1% rate as
provided in this Section) for this additional annuity for not less than the
equivalent of one full year.  Such employee, however, shall make arrangement to
pay to the fund a balance of such contributions, based on his final salary, as
will bring such 1/2 of 1% contributions, computed without interest, to the
equivalent of one year's contributions.

Beginning with the month of January, 1960, each employee shall
contribute by means of salary deductions 1/2 of 1% of each salary
payment, concurrently with and in addition to the employee contributions
otherwise provided for annuity purposes.

Each such additional contribution shall be used, together with county
contributions, to defray the cost of the specified annuity increments.

Such additional employee contributions are not refundable, except to
an employee who withdraws and applies for refund under this Article, or
applies for annuity, and also in cases where a term annuity becomes
payable. In such cases his contributions shall be refunded, without
interest.

(Source: P.A. 95-369, eff. 8-23-07.)