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90_HB0017
40 ILCS 5/8-138 from Ch. 108 1/2, par. 8-138
40 ILCS 5/8-150.1 from Ch. 108 1/2, par. 8-150.1
30 ILCS 805/8.21 new
Amends the Chicago Municipal 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.
LRB9000179EGfg
LRB9000179EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 8-138 and 8-150.1 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 8-138 and 8-150.1 as follows:
8 (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138)
9 Sec. 8-138. Minimum annuities - Additional provisions.
10 (a) An employee who withdraws after age 65 or more with
11 at least 20 years of service, for whom the amount of age and
12 service and prior service annuity combined is less than the
13 amount stated in this Section, shall from the date of
14 withdrawal, instead of all annuities otherwise provided, be
15 entitled to receive an annuity for life of $150 a year, plus
16 1 1/2% for each year of service, to and including 20 years,
17 and 1 2/3% for each year of service over 20 years, of his
18 highest average annual salary for any 4 consecutive years
19 within the last 10 years of service immediately preceding the
20 date of withdrawal.
21 An employee who withdraws after 20 or more years of
22 service, before age 65, shall be entitled to such annuity, to
23 begin not earlier than upon attained age of 55 years if under
24 such age at withdrawal, reduced by 2% for each full year or
25 fractional part thereof that his attained age is less than
26 65, plus an additional 2% reduction for each full year or
27 fractional part thereof that his attained age when annuity is
28 to begin is less than 60 so that the total reduction at age
29 55 shall be 30%.
30 (b) An employee who withdraws after July 1, 1957, at age
31 60 or over, with 20 or more years of service, for whom the
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1 age and service and prior service annuity combined, is less
2 than the amount stated in this paragraph, shall, from the
3 date of withdrawal, instead of such annuities, be entitled to
4 receive an annuity for life equal to 1 2/3% for each year of
5 service, of the highest average annual salary for any 5
6 consecutive years within the last 10 years of service
7 immediately preceding the date of withdrawal; provided, that
8 in the case of any employee who withdraws on or after July 1,
9 1971, such employee age 60 or over with 20 or more years of
10 service, shall receive an annuity for life equal to 1.67% for
11 each of the first 10 years of service; 1.90% for each of the
12 next 10 years of service; 2.10% for each year of service in
13 excess of 20 but not exceeding 30; and 2.30% for each year of
14 service in excess of 30, based on the highest average annual
15 salary for any 4 consecutive years within the last 10 years
16 of service immediately preceding the date of withdrawal.
17 An employee who withdraws after July 1, 1957 and before
18 January 1, 1988, with 20 or more years of service, before age
19 60 years is entitled to annuity, to begin not earlier than
20 upon attained age of 55 years, if under such age at
21 withdrawal, as computed in the last preceding paragraph,
22 reduced 0.25% for each full month or fractional part thereof
23 that his attained age when annuity is to begin is less than
24 60 if the employee was born before January 1, 1936, or 0.5%
25 for each such month if the employee was born on or after
26 January 1, 1936.
27 Any employee born before January 1, 1936, who withdraws
28 with 20 or more years of service, and any employee with 20 or
29 more years of service who withdraws on or after January 1,
30 1988, and any employee with 15 or more years of service who
31 withdraws on or after the effective date of this amendatory
32 Act of 1997 may elect to receive, in lieu of any other
33 employee annuity provided in this Section, an annuity for
34 life equal to 1.80% for each of the first 10 years of
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1 service, 2.00% for each of the next 10 years of service,
2 2.20% for each year of service in excess of 20 but not
3 exceeding 30, and 2.40% for each year of service in excess of
4 30, of the highest average annual salary for any 4
5 consecutive years within the last 10 years of service
6 immediately preceding the date of withdrawal, to begin not
7 earlier than upon attained age of 55 years, if under such age
8 at withdrawal, reduced 0.25% for each full month or
9 fractional part thereof that his attained age when annuity is
10 to begin is less than 60; except that an employee retiring on
11 or after January 1, 1988, at age 55 or over but less than age
12 60, having at least 35 years of service, or an employee
13 retiring on or after July 1, 1990, at age 55 or over but less
14 than age 60, having at least 30 years of service, shall not
15 be subject to the reduction in retirement annuity because of
16 retirement below age 60.
17 However, in the case of an employee who retired on or
18 after January 1, 1985 but before January 1, 1988, at age 55
19 or older and with at least 35 years of service, and who was
20 subject under this subsection (b) to the reduction in
21 retirement annuity because of retirement below age 60, that
22 reduction shall cease to be effective January 1, 1991, and
23 the retirement annuity shall be recalculated accordingly.
24 Any employee who withdraws on or after July 1, 1990, with
25 20 or more years of service, and any employee with 15 or more
26 years of service who withdraws on or after the effective date
27 of this amendatory Act of 1997 may elect to receive, in lieu
28 of any other employee annuity provided in this Section, an
29 annuity for life equal to 2.20% for each year of service of
30 the highest average annual salary for any 4 consecutive years
31 within the last 10 years of service immediately preceding the
32 date of withdrawal, to begin not earlier than upon attained
33 age of 55 years, if under such age at withdrawal, reduced
34 0.25% for each full month or fractional part thereof that his
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1 attained age when annuity is to begin is less than 60; except
2 that an employee retiring at age 55 or over but less than age
3 60, having at least 30 years of service, shall not be subject
4 to the reduction in retirement annuity because of retirement
5 below age 60.
6 The maximum annuity payable under part (a) and (b) of
7 this Section shall not exceed 70% of highest average annual
8 salary in the case of an employee who withdraws prior to July
9 1, 1971, and 75% if withdrawal takes place on or after July
10 1, 1971. For the purpose of the minimum annuity provided in
11 this Section $1,500 is considered the minimum annual salary
12 for any year; and the maximum annual salary for the
13 computation of such annuity is $4,800 for any year before
14 1953, $6000 for the years 1953 to 1956, inclusive, and the
15 actual annual salary, as salary is defined in this Article,
16 for any year thereafter.
17 To preserve rights existing on December 31, 1959, for
18 participants and contributors on that date to the fund
19 created by the Court and Law Department Employees' Annuity
20 Act, who became participants in the fund provided for on
21 January 1, 1960, the maximum annual salary to be considered
22 for such persons for the years 1955 and 1956 is $7,500.
23 (c) For an employee receiving disability benefit, his
24 salary for annuity purposes under paragraphs (a) and (b) of
25 this Section, for all periods of disability benefit
26 subsequent to the year 1956, is the amount on which his
27 disability benefit was based.
28 (d) An employee with 20 or more years of service (or,
29 beginning on the effective date of this amendatory Act of
30 1997, with 15 or more years of service), whose entire
31 disability benefit credit period expires before attainment of
32 age 55 while still disabled for service, is entitled upon
33 withdrawal to the larger of (1) the minimum annuity provided
34 above, assuming he is then age 55, and reducing such annuity
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1 to its actuarial equivalent as of his attained age on such
2 date or (2) the annuity provided from his age and service and
3 prior service annuity credits.
4 (e) The minimum annuity provisions do not apply to any
5 former municipal employee receiving an annuity from the fund
6 who re-enters service as a municipal employee, unless he
7 renders at least 3 years of additional service after the date
8 of re-entry.
9 (f) An employee in service on July 1, 1947, or who
10 became a contributor after July 1, 1947 and before attainment
11 of age 70, who withdraws after age 65, with less than 20
12 years of service for whom the annuity has been fixed under
13 this Article shall, instead of the annuity so fixed, receive
14 an annuity as follows:
15 Such amount as he could have received had the accumulated
16 amounts for annuity been improved with interest at the
17 effective rate to the date of his withdrawal, or to
18 attainment of age 70, whichever is earlier, and had the city
19 contributed to such earlier date for age and service annuity
20 the amount that it would have contributed had he been under
21 age 65, after the date his annuity was fixed in accordance
22 with this Article, and assuming his annuity were computed
23 from such accumulations as of his age on such earlier date.
24 The annuity so computed shall not exceed the annuity which
25 would be payable under the other provisions of this Section
26 if the employee was credited with 20 years of service and
27 would qualify for annuity thereunder.
28 (g) Instead of the annuity provided in this Article, an
29 employee having attained age 65 with at least 15 years of
30 service who withdraws from service on or after July 1, 1971
31 and whose annuity computed under other provisions of this
32 Article is less than the amount provided under this
33 paragraph, is entitled to a minimum annuity for life equal to
34 1% of the highest average annual salary, as salary is defined
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1 and limited in this Section for any 4 consecutive years
2 within the last 10 years of service for each year of service,
3 plus the sum of $25 for each year of service. The annuity
4 shall not exceed 60% of such highest average annual salary.
5 (h) The minimum annuities provided under this Section
6 shall be paid in equal monthly installments.
7 (i) The amendatory provisions of part (b) and (g) of
8 this Section shall be effective July 1, 1971 and apply in the
9 case of every qualifying employee withdrawing on or after
10 July 1, 1971.
11 (j) The amendatory provisions of this amendatory Act of
12 1985 (P.A. 84-23) relating to the discount of annuity because
13 of retirement prior to attainment of age 60, and to the
14 retirement formula, for those born before January 1, 1936,
15 shall apply only to qualifying employees withdrawing on or
16 after July 18, 1985.
17 (k) Beginning January 1, 1991, the minimum amount of
18 employee's annuity shall be $350 per month for life for the
19 following classes of employees, without regard to the fact
20 that withdrawal occurred prior to January 1, 1991:
21 (1) any employee annuitant alive and receiving a
22 life annuity on January 1, 1991, except a reciprocal
23 annuity;
24 (2) any employee annuitant alive and receiving a
25 term annuity on January 1, 1991, except a reciprocal
26 annuity;
27 (3) any employee annuitant alive and receiving a
28 reciprocal annuity on January 1, 1991, whose service in
29 this fund is at least 5 years;
30 (4) any employee annuitant withdrawing after age 60
31 on or after January 1, 1991, with at least 10 years of
32 service in this fund.
33 The increases granted under items (1), (2) and (3) of
34 this subsection (k) shall not be limited by any other Section
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1 of this Act.
2 (Source: P.A. 85-964; 86-1488.)
3 (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
4 Sec. 8-150.1. Minimum annuities for widows. The widow
5 (otherwise eligible for widow's annuity under other Sections
6 of this Article 8) of an employee hereinafter described, who
7 retires from service or dies while in the service subsequent
8 to the effective date of this amendatory provision, and for
9 which widow the amount of widow's annuity and widow's prior
10 service annuity combined, fixed or provided for such widow
11 under other provisions of this Article is less than the
12 amount provided in this Section, shall, from and after the
13 date her otherwise provided annuity would begin, in lieu of
14 such otherwise provided widow's and widow's prior service
15 annuity, be entitled to the following indicated amount of
16 annuity:
17 (a) The widow of any employee who dies while in service
18 on or after the date on which he attains age 60 if the death
19 occurs before July 1, 1990, or on or after the date on which
20 he attains age 55 if the death occurs on or after July 1,
21 1990, with at least 15 years of service (or with at least 20
22 years of service if the death occurred before the effective
23 date of this amendatory Act of 1997), shall be entitled to an
24 annuity equal to one-half of the amount of annuity which her
25 deceased husband would have been entitled to receive had he
26 withdrawn from the service on the day immediately preceding
27 the date of his death, conditional upon such widow having
28 attained the age of 60 or more years on such date if the
29 death occurs before July 1, 1990, or age 55 or more if the
30 death occurs on or after July 1, 1990. Such amount of
31 widow's annuity shall not, however, exceed the sum of $500 a
32 month if the employee's death in service occurs before
33 January 23, 1987. The widow's annuity shall not be limited to
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1 a maximum dollar amount if the employee's death in service
2 occurs on or after January 23, 1987.
3 If the employee dies in service before July 1, 1990, and
4 if such widow of such described employee shall not be 60 or
5 more years of age on such date of death, the amount provided
6 in the immediately preceding paragraph for a widow 60 or more
7 years of age, shall, in the case of such younger widow, be
8 reduced by 0.25% for each month that her then attained age is
9 less than 60 years if the employee was born before January 1,
10 1936 or dies in service on or after January 1, 1988, or by
11 0.5% for each month that her then attained age is less than
12 60 years if the employee was born on or after July 1, 1936
13 and dies in service before January 1, 1988.
14 If the employee dies in service on or after July 1, 1990,
15 and if the widow of the employee has not attained age 55 on
16 or before the employee's date of death, the amount otherwise
17 provided in this subsection (a) shall be reduced by 0.25% for
18 each month that her then attained age is less than 55 years.
19 (b) The widow of any employee who dies subsequent to the
20 date of his retirement on annuity, and who so retired on or
21 after the date on which he attained the age of 60 or more
22 years if retirement occurs before July 1, 1990, or on or
23 after the date on which he attained age 55 if retirement
24 occurs on or after July 1, 1990, with at least 15 years of
25 service (or with at least 20 years of service if the
26 retirement occurred before the effective date of this
27 amendatory Act of 1997), shall be entitled to an annuity
28 equal to one-half of the amount of annuity which her deceased
29 husband received as of the date of his retirement on annuity,
30 conditional upon such widow having attained the age of 60 or
31 more years on the date of her husband's retirement on annuity
32 if retirement occurs before July 1, 1990, or age 55 or more
33 if retirement occurs on or after July 1, 1990. Such amount
34 of widow's annuity shall not, however, exceed the sum of $500
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1 a month if the employee's death occurs before January 23,
2 1987. The widow's annuity shall not be limited to a maximum
3 dollar amount if the employee's death occurs on or after
4 January 23, 1987, regardless of the date of retirement;
5 provided that, if retirement was before January 23, 1987, the
6 employee or eligible spouse repays the excess spouse refund
7 with interest at the effective rate from the date of refund
8 to the date of repayment.
9 If the date of the employee's retirement on annuity is
10 before July 1, 1990, and if such widow of such described
11 employee shall not have attained such age of 60 or more years
12 on such date of her husband's retirement on annuity, the
13 amount provided in the immediately preceding paragraph for a
14 widow 60 or more years of age on the date of her husband's
15 retirement on annuity, shall, in the case of such then
16 younger widow, be reduced by 0.25% for each month that her
17 then attained age was less than 60 years if the employee was
18 born before January 1, 1936 or withdraws from service on or
19 after January 1, 1988, or by 0.5% for each month that her
20 then attained age is less than 60 years if the employee was
21 born on or after January 1, 1936 and withdraws from service
22 before January 1, 1988.
23 If the date of the employee's retirement on annuity is on
24 or after July 1, 1990, and if the widow of the employee has
25 not attained age 55 by the date of the employee's retirement
26 on annuity, the amount otherwise provided in this subsection
27 (b) shall be reduced by 0.25% for each month that her then
28 attained age is less than 55 years.
29 (c) The foregoing provisions relating to minimum
30 annuities for widows shall not apply to the widow of any
31 former municipal employee receiving an annuity from the fund
32 on August 9, 1965 or on the effective date of this amendatory
33 provision, who re-enters service as a municipal employee,
34 unless such employee renders at least 3 years of additional
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1 service after the date of re-entry.
2 (d) In computing the amount of annuity which the husband
3 specified in the foregoing paragraphs (a) and (b) of this
4 Section would have been entitled to receive, or received,
5 such amount shall be the annuity to which such husband would
6 have been, or was entitled, before reduction in the amount of
7 his annuity for the purposes of the voluntary optional
8 reversionary annuity provided for in Sec. 8-139 of this
9 Article, if such option was elected.
10 (e) The amendatory provisions of part (a) and (b) of
11 this Section (increasing the maximum from $300 to $400 a
12 month) shall be effective as of July 1, 1971, and apply in
13 the case of every qualifying widow whose husband dies while
14 in service on or after July 1, 1971 or withdraws and enters
15 on annuity on or after July 1, 1971.
16 (f) The amendments of part (a) and (b) of this Section
17 by this amendatory Act of 1983 (increasing the maximum from
18 $400 to $500 a month) shall be effective as of January 1,
19 1984 and shall apply in the case of every qualifying widow
20 whose husband dies while in the service on or after January
21 1, 1984, or withdraws and enters on annuity on or after
22 January 1, 1984.
23 (g) The amendatory provisions of this amendatory Act of
24 1985 relating to annuity discount because of age for widows
25 of employees born before January 1, 1936, shall apply only to
26 qualifying widows of employees withdrawing or dying in
27 service on or after July 18, 1985.
28 (h) Beginning January 1, 1991, the minimum amount of
29 widow's annuity shall be $300 per month for life for the
30 following classes of widows, without regard to the fact that
31 the death of the employee occurred prior to January 1, 1991:
32 (1) any widow annuitant alive and receiving a life
33 annuity on January 1, 1991, except a reciprocal annuity;
34 (2) any widow annuitant alive and receiving a term
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1 annuity on January 1, 1991, except a reciprocal annuity;
2 (3) any widow annuitant alive and receiving a
3 reciprocal annuity on January 1, 1991, whose employee
4 spouse's service in this fund was at least 5 years;
5 (4) the widow of an employee with at least 10 years
6 of service in this fund who dies after retirement, if the
7 retirement occurred prior to January 1, 1991;
8 (5) the widow of an employee with at least 10 years
9 of service in this fund who dies after retirement, if
10 withdrawal occurs on or after January 1, 1991;
11 (6) the widow of an employee who dies in service
12 with at least 5 years of service in this fund, if the
13 death in service occurs on or after January 1, 1991.
14 The increases granted under items (1), (2), (3) and (4)
15 of this subsection (h) shall not be limited by any other
16 Section of this Act.
17 (i) The widow of an employee who retired or died in
18 service on or after January 1, 1985 and before July 1, 1990,
19 at age 55 or older, and with at least 35 years of service
20 credit, shall be entitled to have her widow's annuity
21 increased, effective January 1, 1991, to an amount equal to
22 50% of the retirement annuity that the deceased employee
23 received on the date of retirement, or would have been
24 eligible to receive if he had retired on the day preceding
25 the date of his death in service, provided that if the widow
26 had not attained age 60 by the date of the employee's
27 retirement or death in service, the amount of the annuity
28 shall be reduced by 0.25% for each month that her then
29 attained age was less than age 60 if the employee's
30 retirement or death in service occurred on or after January
31 1, 1988, or by 0.5% for each month that her attained age is
32 less than age 60 if the employee's retirement or death in
33 service occurred prior to January 1, 1988. However, in cases
34 where a refund of excess contributions for widow's annuity
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1 has been paid by the Fund, the increase in benefit provided
2 by this subsection (i) shall be contingent upon repayment of
3 the refund to the Fund with interest at the effective rate
4 from the date of refund to the date of payment.
5 (Source: P.A. 85-964; 86-1488.)
6 Section 90. The State Mandates Act is amended by adding
7 Section 8.21 as follows:
8 (30 ILCS 805/8.21 new)
9 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
10 and 8 of this Act, no reimbursement by the State is required
11 for the implementation of any mandate created by this
12 amendatory Act of 1997.
13 Section 99. Effective date. This Act takes effect upon
14 becoming law.