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90_HB0068
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
40 ILCS 5/8-159 from Ch. 108 1/2, par. 8-159
30 ILCS 805/8.21 new
Amends the Chicago Municipal Article of the Pension Code.
Increases the minimum retirement annuity. Provides for
retirement at age 50 with 30 years of service. Eliminates
the age discount for employees who retire at age 55 with 25
years of service. Increases the minimum widow's annuity and
allows certain widows to elect to receive 50% of the deceased
employee's retirement annuity instead of a widow's annuity.
Increases the child's annuity and removes the combined family
maximum for certain persons currently eligible for child's
annuities. Amends the State Mandates Act to require
implementation without reimbursement. Effective immediately.
LRB9000178EGfg
LRB9000178EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 8-138, 8-150.1, and 8-159 and to amend the State
3 Mandates 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, 8-150.1, and 8-159 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, may elect to receive, in lieu of any other employee
31 annuity provided in this Section, an annuity for life equal
32 to 1.80% for each of the first 10 years of service, 2.00% for
33 each of the next 10 years of service, 2.20% for each year of
34 service in excess of 20 but not exceeding 30, and 2.40% for
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1 each year of service in excess of 30, of the highest average
2 annual salary for any 4 consecutive years within the last 10
3 years of service immediately preceding the date of
4 withdrawal, to begin not earlier than upon attained age of 55
5 years, if under such age at withdrawal, reduced 0.25% for
6 each full month or fractional part thereof that his attained
7 age when annuity is to begin is less than 60; except that an
8 employee retiring on or after January 1, 1988, at age 55 or
9 over but less than age 60, having at least 35 years of
10 service, or an employee retiring on or after July 1, 1990, at
11 age 55 or over but less than age 60, having at least 30 years
12 of service, or an employee retiring on or after the effective
13 date of this amendatory Act of 1997, at age 55 or over but
14 less than age 60, having at least 25 years of service, shall
15 not be subject to the reduction in retirement annuity because
16 of 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, may elect to receive, in lieu of
26 any other employee annuity provided in this Section, an
27 annuity for life equal to 2.20% for each year of service of
28 the highest average annual salary for any 4 consecutive years
29 within the last 10 years of service immediately preceding the
30 date of withdrawal, to begin not earlier than upon attained
31 age of 55 years, if under such age at withdrawal, reduced
32 0.25% for each full month or fractional part thereof that his
33 attained age when annuity is to begin is less than 60; except
34 that an employee retiring at age 55 or over but less than age
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1 60, having at least 30 years of service, shall not be subject
2 to the reduction in retirement annuity because of retirement
3 below age 60.
4 Any employee who withdraws on or after the effective date
5 of this amendatory Act of 1997 with 20 or more years of
6 service may elect to receive, in lieu of any other employee
7 annuity provided in this Section, an annuity for life equal
8 to 2.20%, for each year of service, of the highest average
9 annual salary for any 4 consecutive years within the last 10
10 years of service immediately preceding the date of
11 withdrawal, to begin not earlier than upon attainment of age
12 55 (age 50 if the employee has at least 30 years of service),
13 reduced 0.25% for each full month or remaining fractional
14 part thereof that the employee's attained age when annuity is
15 to begin is less than 60; except that an employee retiring at
16 age 50 or over with at least 30 years of service or at age 55
17 or over with at least 25 years of service shall not be
18 subject to the reduction in retirement annuity because of
19 retirement below age 60.
20 The maximum annuity payable under part (a) and (b) of
21 this Section shall not exceed 70% of highest average annual
22 salary in the case of an employee who withdraws prior to July
23 1, 1971, and 75% if withdrawal takes place on or after July
24 1, 1971. For the purpose of the minimum annuity provided in
25 this Section $1,500 is considered the minimum annual salary
26 for any year; and the maximum annual salary for the
27 computation of such annuity is $4,800 for any year before
28 1953, $6000 for the years 1953 to 1956, inclusive, and the
29 actual annual salary, as salary is defined in this Article,
30 for any year thereafter.
31 To preserve rights existing on December 31, 1959, for
32 participants and contributors on that date to the fund
33 created by the Court and Law Department Employees' Annuity
34 Act, who became participants in the fund provided for on
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1 January 1, 1960, the maximum annual salary to be considered
2 for such persons for the years 1955 and 1956 is $7,500.
3 (c) For an employee receiving disability benefit, his
4 salary for annuity purposes under paragraphs (a) and (b) of
5 this Section, for all periods of disability benefit
6 subsequent to the year 1956, is the amount on which his
7 disability benefit was based.
8 (d) An employee with 20 or more years of service, whose
9 entire disability benefit credit period expires before
10 attainment of age 55 while still disabled for service, is
11 entitled upon withdrawal to the larger of (1) the minimum
12 annuity provided above, assuming he is then age 55, and
13 reducing such annuity to its actuarial equivalent as of his
14 attained age on such date or (2) the annuity provided from
15 his age and service and prior service annuity credits.
16 (e) The minimum annuity provisions do not apply to any
17 former municipal employee receiving an annuity from the fund
18 who re-enters service as a municipal employee, unless he
19 renders at least 3 years of additional service after the date
20 of re-entry.
21 (f) An employee in service on July 1, 1947, or who
22 became a contributor after July 1, 1947 and before attainment
23 of age 70, who withdraws after age 65, with less than 20
24 years of service for whom the annuity has been fixed under
25 this Article shall, instead of the annuity so fixed, receive
26 an annuity as follows:
27 Such amount as he could have received had the accumulated
28 amounts for annuity been improved with interest at the
29 effective rate to the date of his withdrawal, or to
30 attainment of age 70, whichever is earlier, and had the city
31 contributed to such earlier date for age and service annuity
32 the amount that it would have contributed had he been under
33 age 65, after the date his annuity was fixed in accordance
34 with this Article, and assuming his annuity were computed
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1 from such accumulations as of his age on such earlier date.
2 The annuity so computed shall not exceed the annuity which
3 would be payable under the other provisions of this Section
4 if the employee was credited with 20 years of service and
5 would qualify for annuity thereunder.
6 (g) Instead of the annuity provided in this Article, an
7 employee having attained age 65 with at least 15 years of
8 service who withdraws from service on or after July 1, 1971
9 and whose annuity computed under other provisions of this
10 Article is less than the amount provided under this
11 paragraph, is entitled to a minimum annuity for life equal to
12 1% of the highest average annual salary, as salary is defined
13 and limited in this Section for any 4 consecutive years
14 within the last 10 years of service for each year of service,
15 plus the sum of $25 for each year of service. The annuity
16 shall not exceed 60% of such highest average annual salary.
17 (h) The minimum annuities provided under this Section
18 shall be paid in equal monthly installments.
19 (i) The amendatory provisions of part (b) and (g) of
20 this Section shall be effective July 1, 1971 and apply in the
21 case of every qualifying employee withdrawing on or after
22 July 1, 1971.
23 (j) The amendatory provisions of this amendatory Act of
24 1985 (P.A. 84-23) relating to the discount of annuity because
25 of retirement prior to attainment of age 60, and to the
26 retirement formula, for those born before January 1, 1936,
27 shall apply only to qualifying employees withdrawing on or
28 after July 18, 1985.
29 (k) Beginning on the effective date of this amendatory
30 Act of 1997 January 1, 1991, the minimum amount of employee's
31 annuity shall be $550 $350 per month for life for the
32 following classes of employees, without regard to the fact
33 that withdrawal occurred prior to the effective date of this
34 amendatory Act of 1997 January 1, 1991:
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1 (1) any employee annuitant alive and receiving a
2 life annuity on the effective date of this amendatory Act
3 of 1997 January 1, 1991, except a reciprocal annuity;
4 (2) any employee annuitant alive and receiving a
5 term annuity on the effective date of this amendatory Act
6 of 1997 January 1, 1991, except a reciprocal annuity;
7 (3) any employee annuitant alive and receiving a
8 reciprocal annuity on the effective date of this
9 amendatory Act of 1997 January 1, 1991, whose service in
10 this fund is at least 5 years;
11 (4) any employee annuitant withdrawing after age 60
12 on or after the effective date of this amendatory Act of
13 1997 January 1, 1991, with at least 10 years of service
14 in this fund.
15 The increases granted under items (1), (2) and (3) of
16 this subsection (k) shall not be limited by any other Section
17 of this Act.
18 (Source: P.A. 85-964; 86-1488.)
19 (40 ILCS 5/8-150.1) (from Ch. 108 1/2, par. 8-150.1)
20 Sec. 8-150.1. Minimum annuities for widows. The widow
21 (otherwise eligible for widow's annuity under other Sections
22 of this Article 8) of an employee hereinafter described, who
23 retires from service or dies while in the service subsequent
24 to the effective date of this amendatory provision, and for
25 which widow the amount of widow's annuity and widow's prior
26 service annuity combined, fixed or provided for such widow
27 under other provisions of this Article is less than the
28 amount provided in this Section, shall, from and after the
29 date her otherwise provided annuity would begin, in lieu of
30 such otherwise provided widow's and widow's prior service
31 annuity, be entitled to the following indicated amount of
32 annuity:
33 (a) The widow of any employee who dies while in service
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1 on or after the date on which he attains age 60 if the death
2 occurs before July 1, 1990, or on or after the date on which
3 he attains age 55 if the death occurs on or after July 1,
4 1990, with at least 20 years of service, or on or after the
5 date on which he attains age 50 if the death occurs on or
6 after the effective date of this amendatory Act of 1997 with
7 at least 30 years of service, shall be entitled to an annuity
8 equal to one-half of the amount of annuity which her deceased
9 husband would have been entitled to receive had he withdrawn
10 from the service on the day immediately preceding the date of
11 his death, conditional upon such widow having attained the
12 age of 60 or more years on such date if the death occurs
13 before July 1, 1990, or age 55 or more if the death occurs on
14 or after July 1, 1990. Such amount of widow's annuity shall
15 not, however, exceed the sum of $500 a month if the
16 employee's death in service occurs before January 23, 1987.
17 The widow's annuity shall not be limited to a maximum dollar
18 amount if the employee's death in service occurs on or after
19 January 23, 1987.
20 If the employee dies in service before July 1, 1990, and
21 if such widow of such described employee shall not be 60 or
22 more years of age on such date of death, the amount provided
23 in the immediately preceding paragraph for a widow 60 or more
24 years of age, shall, in the case of such younger widow, be
25 reduced by 0.25% for each month that her then attained age is
26 less than 60 years if the employee was born before January 1,
27 1936 or dies in service on or after January 1, 1988, or by
28 0.5% for each month that her then attained age is less than
29 60 years if the employee was born on or after July 1, 1936
30 and dies in service before January 1, 1988.
31 If the employee dies in service on or after July 1, 1990,
32 and if the widow of the employee has not attained age 55 on
33 or before the employee's date of death, the amount otherwise
34 provided in this subsection (a) shall be reduced by 0.25% for
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1 each month that her then attained age is less than 55 years.
2 (b) The widow of any employee who dies subsequent to the
3 date of his retirement on annuity, and who so retired on or
4 after the date on which he attained the age of 60 or more
5 years if retirement occurs before July 1, 1990, or on or
6 after the date on which he attained age 55 if retirement
7 occurs on or after July 1, 1990, with at least 20 years of
8 service, or on or after the date on which he attained age 50
9 if the retirement occurs on or after the effective date of
10 this amendatory Act of 1997 with at least 30 years of
11 service, shall be entitled to an annuity equal to one-half of
12 the amount of annuity which her deceased husband received as
13 of the date of his retirement on annuity, conditional upon
14 such widow having attained the age of 60 or more years on the
15 date of her husband's retirement on annuity if retirement
16 occurs before July 1, 1990, or age 55 or more if retirement
17 occurs on or after July 1, 1990. Such amount of widow's
18 annuity shall not, however, exceed the sum of $500 a month if
19 the employee's death occurs before January 23, 1987. The
20 widow's annuity shall not be limited to a maximum dollar
21 amount if the employee's death occurs on or after January 23,
22 1987, regardless of the date of retirement; provided that, if
23 retirement was before January 23, 1987, the employee or
24 eligible spouse repays the excess spouse refund with interest
25 at the effective rate from the date of refund to the date of
26 repayment.
27 If the date of the employee's retirement on annuity is
28 before July 1, 1990, and if such widow of such described
29 employee shall not have attained such age of 60 or more years
30 on such date of her husband's retirement on annuity, the
31 amount provided in the immediately preceding paragraph for a
32 widow 60 or more years of age on the date of her husband's
33 retirement on annuity, shall, in the case of such then
34 younger widow, be reduced by 0.25% for each month that her
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1 then attained age was less than 60 years if the employee was
2 born before January 1, 1936 or withdraws from service on or
3 after January 1, 1988, or by 0.5% for each month that her
4 then attained age is less than 60 years if the employee was
5 born on or after January 1, 1936 and withdraws from service
6 before January 1, 1988.
7 If the date of the employee's retirement on annuity is on
8 or after July 1, 1990, and if the widow of the employee has
9 not attained age 55 by the date of the employee's retirement
10 on annuity, the amount otherwise provided in this subsection
11 (b) shall be reduced by 0.25% for each month that her then
12 attained age is less than 55 years.
13 (c) The foregoing provisions relating to minimum
14 annuities for widows shall not apply to the widow of any
15 former municipal employee receiving an annuity from the fund
16 on August 9, 1965 or on the effective date of this amendatory
17 provision, who re-enters service as a municipal employee,
18 unless such employee renders at least 3 years of additional
19 service after the date of re-entry.
20 (d) In computing the amount of annuity which the husband
21 specified in the foregoing paragraphs (a) and (b) of this
22 Section would have been entitled to receive, or received,
23 such amount shall be the annuity to which such husband would
24 have been, or was entitled, before reduction in the amount of
25 his annuity for the purposes of the voluntary optional
26 reversionary annuity provided for in Sec. 8-139 of this
27 Article, if such option was elected.
28 (e) The amendatory provisions of part (a) and (b) of
29 this Section (increasing the maximum from $300 to $400 a
30 month) shall be effective as of July 1, 1971, and apply in
31 the case of every qualifying widow whose husband dies while
32 in service on or after July 1, 1971 or withdraws and enters
33 on annuity on or after July 1, 1971.
34 (f) The amendments of part (a) and (b) of this Section
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1 by this amendatory Act of 1983 (increasing the maximum from
2 $400 to $500 a month) shall be effective as of January 1,
3 1984 and shall apply in the case of every qualifying widow
4 whose husband dies while in the service on or after January
5 1, 1984, or withdraws and enters on annuity on or after
6 January 1, 1984.
7 (g) The amendatory provisions of this amendatory Act of
8 1985 relating to annuity discount because of age for widows
9 of employees born before January 1, 1936, shall apply only to
10 qualifying widows of employees withdrawing or dying in
11 service on or after July 18, 1985.
12 (h) Beginning on the effective date of this amendatory
13 Act of 1997 January 1, 1991, the minimum amount of widow's
14 annuity shall be $500 $300 per month for life for the
15 following classes of widows, without regard to the fact that
16 the death of the employee occurred prior to the effective
17 date of this amendatory Act of 1997 January 1, 1991:
18 (1) any widow annuitant alive and receiving a life
19 annuity on the effective date of this amendatory Act of
20 1997 January 1, 1991, except a reciprocal annuity;
21 (2) any widow annuitant alive and receiving a term
22 annuity on the effective date of this amendatory Act of
23 1997 January 1, 1991, except a reciprocal annuity;
24 (3) any widow annuitant alive and receiving a
25 reciprocal annuity on the effective date of this
26 amendatory Act of 1997 January 1, 1991, whose employee
27 spouse's service in this fund was at least 5 years;
28 (4) the widow of an employee with at least 10 years
29 of service in this fund who dies after retirement, if the
30 retirement occurred prior to the effective date of this
31 amendatory Act of 1997 January 1, 1991;
32 (5) the widow of an employee with at least 10 years
33 of service in this fund who dies after retirement, if
34 withdrawal occurs on or after the effective date of this
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1 amendatory Act of 1997 January 1, 1991;
2 (6) the widow of an employee who dies in service
3 with at least 5 years of service in this fund, if the
4 death in service occurs on or after the effective date of
5 this amendatory Act of 1997 January 1, 1991.
6 The increases granted under items (1), (2), (3) and (4)
7 of this subsection (h) shall not be limited by any other
8 Section of this Act.
9 (i) The widow of an employee who retired or died in
10 service on or after January 1, 1985 and before July 1, 1990,
11 at age 55 or older, and with at least 35 years of service
12 credit, shall be entitled to have her widow's annuity
13 increased, effective January 1, 1991, to an amount equal to
14 50% of the retirement annuity that the deceased employee
15 received on the date of retirement, or would have been
16 eligible to receive if he had retired on the day preceding
17 the date of his death in service, provided that if the widow
18 had not attained age 60 by the date of the employee's
19 retirement or death in service, the amount of the annuity
20 shall be reduced by 0.25% for each month that her then
21 attained age was less than age 60 if the employee's
22 retirement or death in service occurred on or after January
23 1, 1988, or by 0.5% for each month that her attained age is
24 less than age 60 if the employee's retirement or death in
25 service occurred prior to January 1, 1988. However, in cases
26 where a refund of excess contributions for widow's annuity
27 has been paid by the Fund, the increase in benefit provided
28 by this subsection (i) shall be contingent upon repayment of
29 the refund to the Fund with interest at the effective rate
30 from the date of refund to the date of payment.
31 (j) If a deceased employee is receiving a retirement
32 annuity at the time of death and that death occurs on or
33 after the effective date of this amendatory Act of 1997, the
34 widow may elect to receive, in lieu of any other annuity
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1 provided under this Article, 50% of the deceased employee's
2 retirement annuity at the time of death reduced by 0.25% for
3 each month that the widow's age on the date of death is less
4 than 55. However, in cases where a refund of excess
5 contributions for widow's annuity has been paid by the Fund,
6 the benefit provided by this subsection (j) is contingent
7 upon repayment of the refund to the Fund with interest at the
8 effective rate from the date of refund to the date of
9 payment.
10 (Source: P.A. 85-964; 86-1488.)
11 (40 ILCS 5/8-159) (from Ch. 108 1/2, par. 8-159)
12 Sec. 8-159. Amount of child's annuity. Beginning on the
13 effective date of this amendatory Act of 1997 January 1,
14 1988, the amount of a child's annuity shall be $220 $120 per
15 month for each child while the spouse of the deceased
16 employee parent survives, and $250 $150 per month for each
17 child when no such spouse survives, and shall be subject to
18 the following limitations:
19 (1) If the combined annuities for the widow and children
20 of an employee whose death resulted from injury incurred in
21 the performance of duty, or for the children where a widow
22 does not exist, exceed 70% of the employee's final monthly
23 salary, the annuity for each child shall be reduced pro rata
24 so that the combined annuities for the family shall not
25 exceed such limitation.
26 (2) For the family of an employee whose death is the
27 result of any cause other than injury incurred in the
28 performance of duty, in which the combined annuities for the
29 family exceed 60% of the employee's final monthly salary, the
30 annuity for each child shall be reduced pro rata so that the
31 combined annuities for the family shall not exceed such
32 limitation.
33 (3) The increase in child's annuity provided by this
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1 amendatory Act of 1997 1987 shall apply to all child's
2 annuities being paid on or after the effective date of this
3 amendatory Act of 1997. January 1, 1988, subject to The
4 above limitations on the combined annuities for a family in
5 parts (1) and (2) of this Section do not apply to families of
6 employees who died before the effective date of this
7 amendatory Act of 1997.
8 (4) The amendments to parts (1) and (2) of this Section
9 made by Public Act 84-1472 (eliminating the further
10 limitation that the monthly combined family amount shall not
11 exceed $500 plus 10% of the employee's final monthly salary)
12 shall apply in the case of every qualifying child whose
13 employee parent dies in the service or enters on annuity on
14 or after January 23, 1987.
15 (Source: P.A. 85-964.)
16 Section 90. The State Mandates Act is amended by adding
17 Section 8.21 as follows:
18 (30 ILCS 805/8.21 new)
19 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
20 and 8 of this Act, no reimbursement by the State is required
21 for the implementation of any mandate created by this
22 amendatory Act of 1997.
23 Section 99. Effective date. This Act takes effect upon
24 becoming law.