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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.
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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
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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
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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
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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.
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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:
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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
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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
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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
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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.
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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
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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.