State of Illinois
90th General Assembly
Legislation

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90_HB0016

      40 ILCS 5/11-134          from Ch. 108 1/2, par. 11-134
      40 ILCS 5/11-145.1        from Ch. 108 1/2, par. 11-145.1
      30 ILCS 805/8.21 new
          Amends the Chicago Laborer Article of the Pension Code to
      require 15 (rather than 20) years of service to  qualify  for
      the minimum retirement and widow annuities.  Amends the State
      Mandates Act to require implementation without reimbursement.
      Effective immediately.
                                                     LRB9000182EGfg
                                               LRB9000182EGfg
 1        AN  ACT  to  amend  the Illinois Pension Code by changing
 2    Sections 11-134 and 11-145.1 and to amend the State  Mandates
 3    Act.
 4        Be  it  enacted  by  the People of the State of Illinois,
 5    represented in the General Assembly:
 6        Section 5.  The  Illinois  Pension  Code  is  amended  by
 7    changing Sections 11-134 and 11-145.1 as follows:
 8        (40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134)
 9        Sec. 11-134.  Minimum annuities.
10        (a)  An  employee  whose  withdrawal occurs after July 1,
11    1957 at age 60 or over, with 20 or more years of service, (as
12    service is defined or computed in Section 11-216),  for  whom
13    the  age  and  service  and prior service annuity combined is
14    less than the amount stated in this section, shall, from  and
15    after  the  date  of  withdrawal,  in  lieu  of all annuities
16    otherwise provided in this Article, be entitled to receive an
17    annuity for life of an amount equal to 1 2/3% for  each  year
18    of  service,  of  the highest average annual salary for any 5
19    consecutive  years  within  the  last  10  years  of  service
20    immediately preceding the date of withdrawal; provided,  that
21    in the case of any employee who withdraws on or after July 1,
22    1971,  such  employee age 60 or over with 20 or more years of
23    service, shall be entitled to instead receive an annuity  for
24    life  equal  to  1.67%  for  each  of  the  first 10 years of
25    service; 1.90% for each of the  next  10  years  of  service;
26    2.10%  for  each  year  of  service  in  excess of 20 but not
27    exceeding 30; and 2.30% for each year of service in excess of
28    30, based on the highest average  annual  salary  for  any  4
29    consecutive  years  within  the  last  10  years  of  service
30    immediately preceding the date of withdrawal.
31        An  employee  who withdraws after July 1, 1957 and before
                            -2-                LRB9000182EGfg
 1    January 1, 1988, with 20 or more years of service, before age
 2    60, shall be entitled to an annuity,  to  begin  not  earlier
 3    than  age 55, if under such age at withdrawal, as computed in
 4    the last preceding paragraph, reduced 0.25% if  the  employee
 5    was  born before January 1, 1936, or 0.5% if the employee was
 6    born on or after January 1, 1936,  for  each  full  month  or
 7    fractional  part  thereof  that  his  attained  age when such
 8    annuity is to begin is less than 60.
 9        Any employee born before January 1,  1936  who  withdraws
10    with 20 or more years of service, and any employee with 20 or
11    more  years  of  service who withdraws on or after January 1,
12    1988, and any employee with 15 or more years of  service  who
13    withdraws  on  or after the effective date of this amendatory
14    Act of 1997 may elect  to  receive,  in  lieu  of  any  other
15    employee  annuity  provided  in  this Section, an annuity for
16    life equal to 1.80%  for  each  of  the  first  10  years  of
17    service,  2.00%  for  each  of  the next 10 years of service,
18    2.20% for each year of service  in  excess  of  20,  but  not
19    exceeding 30, and 2.40% for each year of service in excess of
20    30,   of   the  highest  average  annual  salary  for  any  4
21    consecutive  years  within  the  last  10  years  of  service
22    immediately preceding the date of withdrawal,  to  begin  not
23    earlier than upon attained age of 55 years, if under such age
24    at   withdrawal,   reduced  0.25%  for  each  full  month  or
25    fractional part thereof that his attained age when annuity is
26    to begin is less than 60; except that an employee retiring on
27    or after January 1, 1988, at age 55 or over but less than age
28    60, having at least 35  years  of  service,  or  an  employee
29    retiring on or after July 1, 1990, at age 55 or over but less
30    than  age  60, having at least 30 years of service, shall not
31    be subject to the reduction in retirement annuity because  of
32    retirement below age 60.
33        However,  in  the  case  of an employee who retired on or
34    after January 1, 1985 but before January 1, 1988, at  age  55
                            -3-                LRB9000182EGfg
 1    or  older  and with at least 35 years of service, and who was
 2    subject  under  this  subsection  (a)  to  the  reduction  in
 3    retirement annuity because of retirement below age  60,  that
 4    reduction  shall  cease  to be effective January 1, 1991, and
 5    the retirement annuity shall be recalculated accordingly.
 6        Any employee who withdraws on or after July 1, 1990, with
 7    20 or more years of service, and any employee with 15 or more
 8    years of service who withdraws on or after the effective date
 9    of this amendatory Act of 1997 may elect to receive, in  lieu
10    of  any  other  employee annuity provided in this Section, an
11    annuity for life equal to 2.20% for each year of  service  of
12    the highest average annual salary for any 4 consecutive years
13    within the last 10 years of service immediately preceding the
14    date  of  withdrawal, to begin not earlier than upon attained
15    age of 55 years, if under such  age  at  withdrawal,  reduced
16    0.25% for each full month or fractional part thereof that his
17    attained age when annuity is to begin is less than 60; except
18    that an employee retiring at age 55 or over but less than age
19    60, having at least 30 years of service, shall not be subject
20    to  the reduction in retirement annuity because of retirement
21    below age 60.
22        The maximum annuity payable under this paragraph  (a)  of
23    this  Section  shall not exceed 70% of highest average annual
24    salary in the case of an employee who withdraws prior to July
25    1, 1971, and 75% if withdrawal takes place on or  after  July
26    1,  1971.  For the purpose of the minimum annuity provided in
27    said paragraphs $1,500 shall be considered the minimum annual
28    salary for any year; and the  maximum  annual  salary  to  be
29    considered  for  the  computation  of  such  annuity shall be
30    $4,800 for any year prior to 1953, $6,000 for the years  1953
31    to  1956,  inclusive, and the actual annual salary, as salary
32    is defined in this Article, for any year thereafter.
33        (b)  For an employee receiving  disability  benefit,  his
34    salary for annuity purposes under this section shall, for all
                            -4-                LRB9000182EGfg
 1    periods of disability benefit subsequent to the year 1956, be
 2    the amount on which his disability benefit was based.
 3        (c)  An  employee  with  20 or more years of service (or,
 4    beginning on the effective date of  this  amendatory  Act  of
 5    1997,  with  15  or  more  years  of  service),  whose entire
 6    disability benefit credit period expires prior to  attainment
 7    of age 55 while still disabled for service, shall be entitled
 8    upon  withdrawal  to  the  larger  of (1) the minimum annuity
 9    provided above assuming that he is then age 55, and  reducing
10    such  annuity to its actuarial equivalent at his attained age
11    on such date, or (2) the annuity provided from  his  age  and
12    service and prior service annuity credits.
13        (d)  The  minimum  annuity  provisions as aforesaid shall
14    not apply to any former employee receiving  an  annuity  from
15    the fund, and who re-enters service as an employee, unless he
16    renders at least 3 years of additional service after the date
17    of re-entry.
18        (e)  An  employee  in  service  on  July  1, 1947, or who
19    became a contributor after July 1, 1947 and prior to July  1,
20    1950,  or  who  shall  become a contributor to the fund after
21    July 1, 1950 prior to attainment of  age  70,  who  withdraws
22    after age 65 with less than 20 years of service, for whom the
23    annuity  has  been fixed under the foregoing sections of this
24    Article shall, in lieu of the annuity so  fixed,  receive  an
25    annuity as follows:
26        Such amount as he could have received had the accumulated
27    amounts  for  annuity  been  improved  with  interest  at the
28    effective  rate  to  the  date  of  his  withdrawal,  or   to
29    attainment  of age 70, whichever is earlier, and had the city
30    contributed to such earlier date for age and service  annuity
31    the amount that would have been contributed had he been under
32    age  65,  after  the date his annuity was fixed in accordance
33    with this Article, and assuming  his  annuity  were  computed
34    from  such  accumulations as of his age on such earlier date.
                            -5-                LRB9000182EGfg
 1    The annuity so computed shall not exceed  the  annuity  which
 2    would  be  payable under the other provisions of this section
 3    if the employee was credited with 20  years  of  service  and
 4    would qualify for annuity thereunder.
 5        (f)  In  lieu  of  the annuity provided in this or in any
 6    other section of this Article, an  employee  having  attained
 7    age  65  with at least 15 years of service who withdraws from
 8    service on or after July 1, 1971 and whose  annuity  computed
 9    under  other  provisions  of  this  Article  is less than the
10    amount provided under this paragraph  shall  be  entitled  to
11    receive  a minimum annual annuity for life equal to 1% of the
12    highest average annual salary for  any  4  consecutive  years
13    within  the  last  10  years of service immediately preceding
14    retirement for each year of his service plus the sum  of  $25
15    for  each  year  of  service.  Such  annual annuity shall not
16    exceed the maximum percentages stated under paragraph (a)  of
17    this Section of such highest average annual salary.
18        (g)  Any  annuity payable under the preceding subsections
19    of this  Section  11-134  shall  be  paid  in  equal  monthly
20    installments.
21        (h)  The  amendatory  provisions  of  part (a) and (f) of
22    this Section shall be effective July 1, 1971 and apply in the
23    case of every qualifying employee  withdrawing  on  or  after
24    July 1, 1971.
25        (i)  The  amendatory provisions of this amendatory Act of
26    1985  relating  to  the  discount  of  annuity   because   of
27    retirement  prior  to attainment of age 60 and increasing the
28    retirement formula for those born  before  January  1,  1936,
29    shall  apply  only  to qualifying employees withdrawing on or
30    after August 16, 1985.
31        (j)  Beginning January 1, 1991,  the  minimum  amount  of
32    employee's  annuity  shall be $350 per month for life for the
33    following classes of employees, without regard  to  the  fact
34    that withdrawal occurred prior to January 1, 1991:
                            -6-                LRB9000182EGfg
 1             (1)  any  employee  annuitant  alive and receiving a
 2        life annuity on January  1,  1991,  except  a  reciprocal
 3        annuity;
 4             (2)  any  employee  annuitant  alive and receiving a
 5        term annuity on January  1,  1991,  except  a  reciprocal
 6        annuity;
 7             (3)  any  employee  annuitant  alive and receiving a
 8        reciprocal annuity on January 1, 1991, whose  service  in
 9        this fund is at least 5 years;
10             (4)  any employee annuitant withdrawing after age 60
11        on  or  after  January 1, 1991, with at least 10 years of
12        service in this fund.
13        The increases granted under items (1),  (2)  and  (3)  of
14    this subsection (j) shall not be limited by any other Section
15    of this Act.
16    (Source: P.A. 85-964; 86-1488.)
17        (40 ILCS 5/11-145.1) (from Ch. 108 1/2, par. 11-145.1)
18        Sec.  11-145.1.  Minimum annuities for widows.  The widow
19    otherwise eligible for widow's annuity under  other  Sections
20    of this Article 11, of an employee hereinafter described, who
21    retires  from service or dies while in the service subsequent
22    to the effective date of this amendatory provision,  and  for
23    which  widow  the amount of widow's annuity and widow's prior
24    service annuity combined, fixed or provided  for  such  widow
25    under  other  provisions  of said Article 11 is less than the
26    amount hereinafter provided in this section, shall, from  and
27    after the date her otherwise provided annuity would begin, in
28    lieu  of  such  otherwise  provided widow's and widow's prior
29    service annuity,  be  entitled  to  the  following  indicated
30    amount of annuity:
31        (a)  The  widow of any employee who dies while in service
32    on or after the date on which he attains age 60 if the  death
33    occurs  before July 1, 1990, or on or after the date on which
                            -7-                LRB9000182EGfg
 1    he attains age 55 if the death occurs on  or  after  July  1,
 2    1990,  with at least 15 years of service (or with at least 20
 3    years of service if the death occurred before  the  effective
 4    date of this amendatory Act of 1997), shall be entitled to an
 5    annuity  equal to one-half of the amount of annuity which her
 6    deceased husband would have been entitled to receive  had  he
 7    withdrawn  from  the service on the day immediately preceding
 8    the date of his death, conditional  upon  such  widow  having
 9    attained  age  60  on or before such date if the death occurs
10    before July 1, 1990, or age 55 if  the  death  occurs  on  or
11    after  July  1, 1990. The widow's annuity shall not, however,
12    exceed the sum of $500 a month if  the  employee's  death  in
13    service  occurs before January 23, 1987.  The widow's annuity
14    shall not be limited  to  a  maximum  dollar  amount  if  the
15    employee's  death  in  service occurs on or after January 23,
16    1987.
17        If the employee dies in service before July 1, 1990,  and
18    if  such  widow of such described employee shall not be 60 or
19    more years of age on such date of death, the amount  provided
20    in the immediately preceding paragraph for a widow 60 or more
21    years  of  age,  shall, in the case of such younger widow, be
22    reduced by 0.25% for each month that her then attained age is
23    less than 60 years if the employee was born before January 1,
24    1936, or dies in service on or after January 1, 1988, or 0.5%
25    for each month that her then attained age  is  less  than  60
26    years  if  the  employee was born on or after January 1, 1936
27    and dies in service before January 1, 1988.
28        If the employee dies in service on or after July 1, 1990,
29    and if the widow of the employee has not attained age  55  on
30    or  before the employee's date of death, the amount otherwise
31    provided in this subsection (a) shall be reduced by 0.25% for
32    each month that her then attained age is less than 55 years.
33        (b)  The widow of any employee who dies subsequent to the
34    date of his retirement on annuity, and who so retired  on  or
                            -8-                LRB9000182EGfg
 1    after  the  date  on  which  he attained age 60 if retirement
 2    occurs before July 1, 1990, or on or after the date on  which
 3    he  attained  age 55 if retirement occurs on or after July 1,
 4    1990, with at least 15 years of service (or with at least  20
 5    years  of  service  if  the  retirement  occurred  before the
 6    effective date of this amendatory  Act  of  1997),  shall  be
 7    entitled  to  an  annuity  equal to one-half of the amount of
 8    annuity which her deceased husband received as of the date of
 9    his retirement on annuity, conditional upon such widow having
10    attained age 60 on  or  before  the  date  of  her  husband's
11    retirement  on  annuity  if  retirement occurs before July 1,
12    1990, or age 55 if retirement occurs  on  or  after  July  1,
13    1990.  Such  amount  of  widow's  annuity shall not, however,
14    exceed the sum of $500 a month if the employee's death occurs
15    before January 23, 1987.  The widow's annuity  shall  not  be
16    limited  to  a  maximum dollar amount if the employee's death
17    occurs on or after January 23, 1987, regardless of  the  date
18    of  retirement;  provided  that,  if  retirement  was  before
19    January  23, 1987, the employee or eligible spouse repays the
20    excess spouse refund with interest at the effective rate from
21    the date of refund to the date of repayment.
22        If the date of the employee's retirement  on  annuity  is
23    before  July  1,  1990,  and  if such widow of such described
24    employee shall not have attained such age of 60 or more years
25    on such date of her  husband's  retirement  on  annuity,  the
26    amount  provided in the immediately preceding paragraph for a
27    widow 60 or more years of age on the date  of  her  husband's
28    retirement  on  annuity,  shall,  in  the  case  of such then
29    younger widow, be reduced by 0.25% for each  month  that  her
30    then  attained age was less than 60 years if the employee was
31    born before January 1, 1936, or withdraws from service on  or
32    after  January  1, 1988, or 0.5% for each month that her then
33    attained age was less than 60 years if the employee was  born
34    on or after January 1, 1936 and withdraws from service before
                            -9-                LRB9000182EGfg
 1    January 1, 1988.
 2        If the date of the employee's retirement on annuity is on
 3    or  after  July 1, 1990, and if the widow of the employee has
 4    not attained age 55 by the date of the employee's  retirement
 5    on  annuity, the amount otherwise provided in this subsection
 6    (b) shall be reduced by 0.25% for each month  that  her  then
 7    attained age is less than 55 years.
 8        (c)  The   foregoing   provisions   relating  to  minimum
 9    annuities for widows shall not apply  to  the  widow  of  any
10    former  employee receiving an annuity from the fund on August
11    2,  1965  or  on  the  effective  date  of  this   amendatory
12    provision, who re-enters service as a former employee, unless
13    such  employee renders at least 3 years of additional service
14    after the date of re-entry.
15        (d)  The amendatory provisions of part  (a)  and  (b)  of
16    this  Section  (increasing  the  maximum  from $300 to $400 a
17    month) shall be effective as of July 1, 1971,  and  apply  in
18    the  case  of every qualifying widow whose husband dies while
19    in service on or after July 1, 1971 and prior to  January  1,
20    1984,  or withdraws and enters on annuity on or after July 1,
21    1971 and prior to January 1, 1984.
22        (e)  The changes made  in  parts  (a)  and  (b)  of  this
23    Section  by  this  amendatory  Act  of  1983  (increasing the
24    maximum from $400 to $500 per month)  shall  apply  to  every
25    qualifying  widow  whose  husband  dies  in the service on or
26    after January 1, 1984, or withdraws and enters on annuity  on
27    or after January 1, 1984.
28        (f)  The  amendments  to  this Section by this amendatory
29    Act of 1985, relating to changing the discount because of age
30    from 1/2 of 1% to 0.25% per month  for  widows  of  employees
31    born  before  January 1, 1936, shall apply only to qualifying
32    widows whose husbands die while in the service  on  or  after
33    August  16, 1985 or withdraw and enter on annuity on or after
34    August 16, 1985.
                            -10-               LRB9000182EGfg
 1        (g)  Beginning January 1, 1991,  the  minimum  amount  of
 2    widow's  annuity  shall  be  $300  per month for life for the
 3    following classes of widows, without regard to the fact  that
 4    the death of the employee occurred prior to January 1, 1991:
 5             (1)  any  widow annuitant alive and receiving a term
 6        annuity on January 1, 1991, except a reciprocal annuity;
 7             (2)  any widow annuitant alive and receiving a  life
 8        annuity on January 1, 1991, except a reciprocal annuity;
 9             (3)  any  widow  annuitant  alive  and  receiving  a
10        reciprocal  annuity  on  January  1, 1991, whose employee
11        spouse's service in this fund was at least 5 years;
12             (4)  the widow of an employee with at least 10 years
13        of service in this fund who dies after retirement, if the
14        retirement occurred prior to January 1, 1991;
15             (5)  the widow of an employee with at least 10 years
16        of service in this fund who  dies  after  retirement,  if
17        withdrawal occurs on or after January 1, 1991;
18             (6)  the  widow  of  an employee who dies in service
19        with at least 5 years of service in  this  fund,  if  the
20        death in service occurs on or after January 1, 1991.
21        The  increases  granted under items (1), (2), (3) and (4)
22    of this subsection (g) shall not  be  limited  by  any  other
23    Section of this Act.
24        (h)  The  widow  of  an  employee  who retired or died in
25    service on or after January 1, 1985 and before July 1,  1990,
26    at  age  55  or  older, and with at least 35 years of service
27    credit,  shall  be  entitled  to  have  her  widow's  annuity
28    increased, effective January 1, 1991, to an amount  equal  to
29    50%  of  the  retirement  annuity  that the deceased employee
30    received on the  date  of  retirement,  or  would  have  been
31    eligible  to  receive  if he had retired on the day preceding
32    the date of his death in service, provided that if the  widow
33    had  not  attained  age  60  by  the  date  of the employee's
34    retirement or death in service, the  amount  of  the  annuity
                            -11-               LRB9000182EGfg
 1    shall  be  reduced  by  0.25%  for  each  month that her then
 2    attained  age  was  less  than  age  60  if  the   employee's
 3    retirement  or  death in service occurred on or after January
 4    1, 1988, or by 0.5%  for each month that her attained age  is
 5    less  than  age  60  if the employee's retirement or death in
 6    service occurred prior to January 1, 1988.  However, in cases
 7    where a refund of excess contributions  for  widow's  annuity
 8    has  been  paid by the Fund, the increase in benefit provided
 9    by this subsection (i) shall be contingent upon repayment  of
10    the  refund  to  the Fund with interest at the effective rate
11    from the date of refund to the date of payment.
12    (Source: P.A. 85-964; 86-1488.)
13        Section 90.  The State Mandates Act is amended by  adding
14    Section 8.21 as follows:
15        (30 ILCS 805/8.21 new)
16        Sec.  8.21.  Exempt  mandate.  Notwithstanding Sections 6
17    and 8 of this Act, no reimbursement by the State is  required
18    for  the  implementation  of  any  mandate  created  by  this
19    amendatory Act of 1997.
20        Section  99.  Effective date.  This Act takes effect upon
21    becoming law.

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