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90_HB1406
40 ILCS 5/9-133 from Ch. 108 1/2, par. 9-133
40 ILCS 5/9-133.1 from Ch. 108 1/2, par. 9-133.1
40 ILCS 5/9-134 from Ch. 108 1/2, par. 9-134
40 ILCS 5/9-146.1 from Ch. 108 1/2, par. 9-146.1
40 ILCS 5/9-146.2 new
40 ILCS 5/9-179.3 from Ch. 108 1/2, par. 9-179.3
30 ILCS 805/8.21 new
Amends the Cook County Article of the Pension Code.
Compounds the 3% annual increase in retirement pensions.
Provides for a compounded 3% annual increase in widow's
annuity. Also makes technical and stylistic changes. Amends
the State Mandates Act to require implementation without
reimbursement. Effective immediately.
LRB9004208EGfg
LRB9004208EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 9-133, 9-133.1, 9-134, 9-146.1, and 9-179.3 and
3 adding Section 9-146.2 and to amend the State 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 9-133, 9-133.1, 9-134, 9-146.1, and 9-179.3
8 and adding Section 9-146.2 as follows:
9 (40 ILCS 5/9-133) (from Ch. 108 1/2, par. 9-133)
10 Sec. 9-133. Automatic increase in annuity.
11 (a) An employee who retired or retires from service
12 after December 31, 1959, having attained age 60 or more or,
13 beginning January 1, 1991, having attained 30 or more years
14 of creditable service, shall, in the month of January of the
15 year following the year in which the first anniversary of
16 retirement occurs, have his then fixed and payable monthly
17 annuity increased by 1.5%. The 1 1/2%, and such first fixed
18 annuity shall be as granted at retirement increased by a
19 further 1.5% of the original monthly annuity 1 1/2% in
20 January of each year thereafter. Beginning with January of
21 the year 1972, such increases shall be at the rate of 2% in
22 lieu of the aforesaid specified 1 1/2%. Beginning with
23 January of the year 1982, such increases shall be at the rate
24 of 3% in lieu of the aforesaid specified 2%. Beginning
25 January 1, 1998, all annual increases payable under this
26 subsection shall be calculated at the rate of 3% of the
27 amount of monthly annuity payable at the time of the
28 increase, including any increases previously granted under
29 this Article.
30 An employee who retires on annuity before age 60 and,
31 beginning January 1, 1991, with less than 30 years of
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1 creditable service shall receive the initial increase under
2 this subsection in such increases beginning with January of
3 the year immediately following the year in which he attains
4 the age of 60 years. An employee who retires on annuity
5 before age 60 and before January 1, 1991, with at least 30
6 years of creditable service, shall be entitled to receive the
7 first increase under this subsection no later than January 1,
8 1993.
9 For an employee who, in accordance with the provisions of
10 Section 9-108.1 of this Act, shall have become a member of
11 the State System established under Article 14 on February 1,
12 1974, the first such automatic increase shall begin in
13 January of 1975.
14 (b) Subsection (a) is not applicable to an employee
15 retiring and receiving a term annuity.
16 Subsection (a) is not applicable, as defined in this Act,
17 nor to any otherwise qualified employee who retires before he
18 makes employee contributions (at the 1/2 of 1% rate as
19 provided in this Section) for this additional annuity for not
20 less than the equivalent of one full year, unless the. Such
21 employee pays, however, shall make arrangement to pay to the
22 fund an amount a balance of such contributions, based on his
23 final salary, as will bring such 1/2 of 1% contributions,
24 based on his final salary and computed without interest, that
25 will bring the total of his contributions under subsection
26 (c) to the equivalent of one year's contributions.
27 (c) Beginning with the month of January, 1960, each
28 employee shall contribute by means of salary deductions 0.5%
29 1/2 of 1% of each salary payment, concurrently with and in
30 addition to the employee contributions otherwise provided for
31 annuity purposes.
32 Each such additional contribution shall be credited to an
33 account in the prior service annuity reserve, to be used,
34 together with county contributions, to defray the cost of the
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1 specified annuity increments. At Any balance in such account
2 as of the beginning of each calendar year, the account shall
3 be credited with interest at the rate of 3% per annum.
4 Such Additional employee contributions are not
5 refundable, except to an employee who withdraws and applies
6 for a refund under this Article, or to whom applies for
7 annuity, and also in cases where a term annuity becomes
8 payable. In such cases his contributions shall be refunded,
9 without interest, and charged to the prior service annuity
10 reserve.
11 (Source: P.A. 87-794; 87-1265.)
12 (40 ILCS 5/9-133.1) (from Ch. 108 1/2, par. 9-133.1)
13 Sec. 9-133.1. Automatic increases in annuity for certain
14 heretofore retired participants.
15 (a) An A retired employee who retired at age 55 or over
16 and who (i) (a) is receiving an annuity based on a service
17 credit of 20 or more years of service credit, (ii) and (b)
18 does not qualify for the automatic increases in annuity
19 provided for in Section Sec. 9-133 of this Article, and (iii)
20 (c) elects to contribute make a contribution to the Fund, at
21 a time and in the manner prescribed by the Retirement Board,
22 of a sum equal to 1% of the final average monthly salary
23 forming the basis of the calculation of the their annuity
24 multiplied by the number of years of credited service, or 1%
25 of the their final monthly salary multiplied by the number of
26 years of credited service in any case where the final average
27 salary is not used in the calculation, shall have his
28 original fixed and payable monthly amount of annuity
29 increased by 1.5% in January of the year following the year
30 in which he attains the age of 65 years, if that such age of
31 65 years is attained in the year 1969 or later, by an amount
32 equal to 1 1/2%, and by an equal additional 1.5% 1 1/2% in
33 January of each year thereafter. Beginning with January of
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1 the year 1972, such increases shall be at the rate of 2% in
2 lieu of the aforesaid specified 1 1/2%. Beginning with
3 January of the year 1982, such increases shall be at the rate
4 of 3% in lieu of the aforesaid specified 2%. Beginning
5 January 1, 1998, all annual increases payable under this
6 subsection shall be calculated at the rate of 3% of the
7 amount of monthly annuity payable at the time of the
8 increase, including any increases previously granted under
9 this Article.
10 (b) A In those cases in which the retired employee who
11 is receiving a retirement annuity and who has attained the
12 age of 66 or more years in the year 1969 or before, he shall
13 have his such annuity increased in January of the year 1970
14 by an amount equal to 1.5% of the originally granted annuity
15 1 1/2% multiplied by the number equal to the number of months
16 of January that have elapsed elapsing from and including
17 January of the year immediately following the year he
18 attained the age of 65 years if he retired at or prior to age
19 65, or from and including January of the year immediately
20 following the year of retirement if he retired at an age
21 greater than 65 years, to and including January of the year
22 1970, and by an equal additional 1.5% 1 1/2% in January of
23 each year thereafter. Beginning with January of the year
24 1972, such increases shall be at the rate of 2% in lieu of
25 the aforesaid specified 1 1/2%. Beginning with January of
26 the year 1982, such increases shall be at the rate of 3% in
27 lieu of the aforesaid specified 2%. Beginning January 1,
28 1998, all annual increases payable under this subsection
29 shall be calculated at the rate of 3% of the amount of
30 monthly annuity payable at the time of the increase,
31 including any increases previously granted under this
32 Article.
33 (c) To defray the annual cost of these such increases,
34 the annual interest income of the Fund, accruing from
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1 investments held by the Fund, exclusive of gains or losses on
2 sales or exchanges of assets during the year, over and above
3 4% a year, shall be used to the extent necessary and
4 available to finance the cost of these such increases for the
5 following year, and such amount shall be transferred as of
6 the end of each year, beginning with the year 1969, to a Fund
7 account designated as the Supplementary Payment Reserve from
8 the Investment and Interest Reserve set forth in Section Sec.
9 9-214. The sums contributed by annuitants as provided for in
10 this Section shall also be placed in the aforesaid
11 Supplementary Payment Reserve and shall be applied for and
12 used for the purposes of such Fund account, together with the
13 aforesaid interest.
14 If In the event the monies in the Supplementary Payment
15 Reserve in any year arising from: (1) the available interest
16 income as defined hereinbefore and accruing in the preceding
17 year over above 4% a year and (2) the contributions by
18 retired persons, as set forth hereinbefore, are insufficient
19 to make the total payments to all persons estimated to be
20 entitled to the annuity increases specified in this Section
21 hereinbefore, then (3) any interest earnings over 4% a year
22 earned in beginning with the year 1969 or later that which
23 were not previously used to finance such increases and that
24 have been which were transferred to the Prior Service Annuity
25 Reserve may be used to the extent necessary and available to
26 provide sufficient funds to finance the such increases for
27 the current year, and those such sums shall be transferred to
28 the Supplementary Payment Reserve from the Prior Service
29 Annuity Reserve.
30 If In the event the total monies available in the
31 Supplementary Payment Reserve from the preceding indicated
32 sources are insufficient to make the total payments to all
33 persons entitled to such increases for the year, a
34 proportionate amount computed as the ratio of the monies
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1 available to the total of the total payments for that year
2 shall be paid to each person for that year.
3 The Fund shall be obligated for the payment of the
4 increases in annuity as provided for in this Section only to
5 the extent that the assets for that such purpose, as
6 specified herein, are available.
7 (Source: P.A. 83-1362.)
8 (40 ILCS 5/9-134) (from Ch. 108 1/2, par. 9-134)
9 Sec. 9-134. Minimum annuity - Additional provisions.
10 (a) An employee who withdraws after July 1, 1957 at age
11 60 or more with 20 or more years of service, for whom the
12 amount of age and service and prior service annuity combined
13 is less than the amount stated in this Section from the date
14 of withdrawal, instead of all annuities otherwise provided in
15 this Article, is entitled to receive an annuity for life of
16 an amount equal to 1 2/3% for each year of service, of his
17 highest average annual salary for any 5 consecutive years
18 within the last 10 years of service immediately preceding the
19 date of withdrawal; provided that in the case of any employee
20 who withdraws on or after July 1, 1971, such employee age 60
21 or over with 20 or more years of service, or who withdraws on
22 or after January 1, 1982 and on or after attainment of age 65
23 with 10 or more years of service, shall instead receive an
24 annuity for life equal to 1.67% for each of the first 10
25 years of service; 1.90% for each of the next 10 years of
26 service; 2.10% for each year of service in excess of 20 but
27 not exceeding 30; and 2.30% for each year of service in
28 excess of 30, based on the highest average annual salary for
29 any 4 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, but prior
32 to January 1, 1988, with 20 or more years of service, before
33 age 60 is entitled to annuity, to begin not earlier than age
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1 55, if under such age at withdrawal, as computed in the last
2 preceding paragraph, reduced 1/2 of 1% for each full month or
3 fractional part thereof that his attained age when annuity is
4 to begin is less than 60 to the end that the total reduction
5 at age 55 shall be 30%, except that an employee retiring at
6 age 55 or over but less than age 60, having at least 35 years
7 of service, shall not be subject to the reduction in his
8 retirement annuity because of retirement below age 60.
9 An employee who withdraws on or after January 1, 1988,
10 with 20 or more years of service and before age 60, is
11 entitled to annuity as computed above, to begin not earlier
12 than age 50 if under such age at withdrawal, reduced 1/2 of
13 1% for each full month or fractional part thereof that his
14 attained age when annuity is to begin is less than 60, to the
15 end that the total reduction at age 50 shall be 60%, except
16 that an employee retiring at age 50 or over but less than age
17 60, having at least 30 years of service, shall not be subject
18 to the reduction in retirement annuity because of retirement
19 below age 60.
20 An employee who withdraws on or after January 1, 1992 but
21 before January 1, 1993, at age 60 or over with 5 or more
22 years of service, may elect, in lieu of any other employee
23 annuity provided in this Section, to receive an annuity for
24 life equal to 2.20% for each of the first 20 years of
25 service, and 2.40% for each year of service in excess of 20,
26 based on the highest average annual salary for any 4
27 consecutive years within the last 10 years of service
28 immediately preceding the date of withdrawal. An employee
29 who withdraws on or after January 1, 1992, but before January
30 1, 1993, on or after attainment of age 55 but before
31 attainment of age 60 with 5 or more years of service, is
32 entitled to elect such annuity, but the annuity shall be
33 reduced 0.25% for each full month or fractional part thereof
34 that his attained age when the annuity is to begin is less
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1 than age 60, to the end that the total reduction at age 55
2 shall be 15%, except that an employee retiring at age 55 or
3 over but less than age 60, having at least 30 years of
4 service, shall not be subject to the reduction in retirement
5 annuity because of retirement below age 60. This annuity
6 benefit formula shall only apply to those employees who are
7 age 55 or over prior to January 1, 1993, and who elect to
8 withdraw at age 55 or over on or after January 1, 1992 but
9 before January 1, 1993.
10 The maximum annuity under this paragraph (a) shall not
11 exceed 70% of highest average annual salary for any 5
12 consecutive years within the last 10 years of service in the
13 case of an employee who withdraws prior to July 1, 1971, and
14 75% of the highest average annual salary for any 4
15 consecutive years within the last 10 years of service
16 immediately preceding the date of withdrawal if withdrawal
17 takes place on or after July 1, 1971 and prior to January 1,
18 1988, and 80% of the highest average annual salary for any 4
19 consecutive years within the last 10 years of service
20 immediately preceding the date of withdrawal if withdrawal
21 takes place on or after January 1, 1988. Fifteen hundred
22 dollars shall be considered the minimum amount of annual
23 salary for any year, and the maximum shall be his salary as
24 defined in this Article, except that for the years before
25 1957 and subsequent to 1952 the maximum annual salary to be
26 considered shall be $6,000, and for any year before the year
27 1953, $4,800.
28 (b) Any employee who withdraws on or after July 1, 1985
29 but prior to January 1, 1988, at age 60 or over with 10 or
30 more years of service, may elect in lieu of the benefit in
31 paragraph (a) to receive an annuity for life equal to 2.00%
32 for each year of service, based on the highest average annual
33 salary for any 4 consecutive years within the last 10 years
34 of service immediately preceding the date of withdrawal. An
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1 employee who withdraws on or after July 1, 1985, but prior to
2 January 1, 1988, with 10 or more years of service, but before
3 age 60, is entitled to elect such annuity, to begin not
4 earlier than age 55, but the annuity shall be reduced 0.5%
5 for each full month or fractional part thereof that his
6 attained age when the annuity is to begin is less than 60, to
7 the end that the total reduction at age 55 shall be 30%;
8 except that an employee retiring at age 55 or over but less
9 than age 60, having at least 30 years of service, shall not
10 be subject to the reduction in retirement annuity because of
11 retirement below age 60.
12 An employee who withdraws on or after January 1, 1988, at
13 age 60 or over with 10 or more years of service, may elect,
14 in lieu of the benefit in paragraph (a), to receive an
15 annuity for life equal to 2.20% for each of the first 20
16 years of service, and 2.4% for each year of service in excess
17 of 20, based on the highest average annual salary for any 12
18 consecutive months (4 consecutive years if withdrawal occurs
19 before the effective date of this amendatory Act of 1997)
20 within the last 10 years of service immediately preceding the
21 date of withdrawal. An employee who withdraws on or after
22 January 1, 1988, with 10 or more years of service, but before
23 age 60, is entitled to elect such annuity, to begin not
24 earlier than age 50, but the annuity shall be reduced 0.5%
25 for each full month or fractional part thereof that his
26 attained age when the annuity is to begin is less than 60, to
27 the end that the total reduction at age 50 shall be 60%,
28 except that an employee retiring at age 50 or over but less
29 than age 60, having at least 30 years of service, shall not
30 be subject to the reduction in retirement annuity because of
31 retirement below age 60.
32 The maximum annuity under this paragraph (b) shall not
33 exceed: (i) 75% of the highest average annual salary for any
34 4 consecutive years within the last 10 years of service
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1 immediately preceding the date of withdrawal if withdrawal
2 occurs prior to January 1, 1988, (ii) or 80% of the highest
3 average annual salary for any 4 consecutive years within the
4 last 10 years of service immediately preceding the date of
5 withdrawal if withdrawal takes place on or after January 1,
6 1988 and before the effective date of this amendatory Act of
7 1997, or (iii) 80% of the highest average annual salary for
8 any 12 consecutive months within the last 10 years of service
9 immediately preceding the date of withdrawal if withdrawal
10 occurs on or after the effective date of this amendatory Act
11 of 1997.
12 The provisions of this paragraph (b) do not apply to any
13 former County employee receiving an annuity from the fund,
14 who re-enters service as a County employee, unless he renders
15 at least 3 years of additional service after the date of
16 re-entry.
17 (c) For an employee receiving disability benefit, the
18 salary for annuity purposes under paragraph (a) or (b) of
19 this Section shall, for all periods of disability benefit
20 subsequent to the year 1956, be the amount on which his
21 disability benefit was based.
22 (d) A county employee with 20 or more years of service,
23 whose entire disability benefit credit period expires before
24 attainment of age 50 (age 55 if expiration occurs before
25 January 1, 1988), while still disabled for service is
26 entitled upon withdrawal to the larger of:
27 (1) The minimum annuity provided above, assuming
28 that he is then age 50 (age 55 if expiration occurs
29 before January 1, 1988), and reducing such annuity to its
30 actuarial equivalent at his attained age on such date, or
31 (2) the annuity provided from his age and service
32 and prior service annuity credits.
33 (e) The minimum annuity provisions above do not apply to
34 any former county employee receiving an annuity from the
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1 fund, who re-enters service as a county employee, unless he
2 renders at least 3 years of additional service after the date
3 of re-entry.
4 (f) Any employee in service on July 1, 1947, or who
5 enters service thereafter before attaining age 65 and
6 withdraws after age 65 with less than 10 years of service for
7 whom the annuity has been fixed under the foregoing Sections
8 of this Article, shall, instead of the annuity so fixed,
9 receive an annuity as follows:
10 Such amount as he could have received had the accumulated
11 amounts for annuity been improved with interest at the
12 effective rate to the date of withdrawal, or to attainment of
13 age 70, whichever is earlier, and had the county contributed
14 to such earlier date for age and service annuity the amount
15 that it would have contributed had he been under age 65,
16 after the date his annuity was fixed in accordance with this
17 Article, and assuming his annuity were computed from such
18 accumulations as of his age on such earlier date. However
19 those employees who before July 1, 1953, made additional
20 contributions in accordance with this Article, the annuity so
21 computed under this paragraph shall not exceed the annuity
22 which would be payable under the other provisions of this
23 Section if the employee concerned was credited with 20 years
24 of service and would qualify for annuity thereunder.
25 (g) Instead of the annuity provided in this or any other
26 Section of this Article, an employee having attained age 65
27 with at least 15 years of service may elect to receive a
28 minimum annual annuity for life equal to 1% of the highest
29 average annual salary for any 12 consecutive months (4
30 consecutive years if withdrawal occurs before the effective
31 date of this amendatory Act of 1997) within the last 10 years
32 of service immediately preceding retirement for each year of
33 service, plus the sum of $25 for each year of service,
34 provided that no such minimum annual annuity may be greater
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1 than 60% of such highest average annual salary.
2 (h) The annuity is payable in equal monthly
3 installments.
4 (i) If, by operation of law, a function of a
5 governmental unit, as defined by Section 20-107 of this Code,
6 is transferred in whole or in part to the county in which
7 this Article 9 is created as set forth in Section 9-101, and
8 employees of the governmental unit are transferred as a class
9 to such county, the earnings credits in the retirement system
10 covering the governmental unit which have been validated
11 under Section 20-109 of this Code shall be considered in
12 determining the highest average annual salary for purposes of
13 this Section 9-134.
14 (j) The annuity being paid to an employee annuitant on
15 July 1, 1988, shall be increased on that date by 1% for each
16 full year that has elapsed from the date the annuity began.
17 (k) Notwithstanding anything to the contrary in this
18 Article 9, Section 20-131 shall not apply to an employee who
19 withdraws on or after January 1, 1988, but prior to attaining
20 age 55. Therefore, no employee shall be entitled to elect to
21 have the alternative formula previously set forth in Section
22 20-122 prior to the amendatory Act of 1975 apply to any
23 annuity, the payment of which commenced after January 1,
24 1988, but prior to such employee's attainment of age 55.
25 (Source: P.A. 86-272; 87-794.)
26 (40 ILCS 5/9-146.1) (from Ch. 108 1/2, par. 9-146.1)
27 Sec. 9-146.1. Minimum annuities for widows. The widow of
28 an employee who retires from service or dies while in the
29 service subsequent to June 11, 1965, who is otherwise
30 eligible for widow's annuity under this Article and for whom
31 the amount of widow's annuity and widow's prior service
32 annuity combined, fixed or provided for such widow under
33 other provisions of this Article 9 is less than the amount
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1 hereinafter provided in this Section, shall, from and after
2 the date her otherwise provided annuity would begin, in lieu
3 of such otherwise provided widow's and widow's prior service
4 annuity, be entitled to the following indicated amount of
5 annuity:
6 (a) The widow, of any employee who dies while in the
7 service on or after the date on which he attains the age of
8 60 or more years with at least 20 years of service, or 10 or
9 more years of service if death occurs on or after attainment
10 of age 65 and on or after January 1, 1982, shall be entitled
11 to an annuity equal to one-half of the amount of annuity
12 which her deceased husband would have been entitled to
13 receive had he withdrawn from the service on the day
14 immediately preceding the date of his death, conditional upon
15 such widow having attained the age of 60 or more years on
16 such date. Such amount of widow's annuity shall not, however,
17 exceed the sum of $500 a month if death in service occurs
18 before July 1, 1985.
19 If such widow of such described employee shall not be 60
20 or more years of age on such date of death, the amount
21 provided in the immediately preceding paragraph for a widow
22 60 or more years of age, shall, in the case of such younger
23 widow, be reduced by 1/2 of 1 per cent for each month that
24 her then attained age is less than 60 years; except that such
25 younger widow of an employee who dies while in service on or
26 after July 1, 1985 with at least 30 years of service, shall
27 not be subject to the reduction in widow's annuity because of
28 her age less than 60 on the date of the employee's death.
29 (b) The widow, of any employee who dies subsequent to
30 the date of his retirement on annuity, and who so retired on
31 or after the date on which he attained the age of 60 or more
32 years with at least 20 years of service, or 10 or more years
33 of service if retirement occurs on or after attainment of age
34 65 and on or after January 1, 1982, shall be entitled to an
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1 annuity equal to one-half of the amount of annuity which her
2 deceased husband received as of the date of his retirement on
3 annuity, conditional upon such widow having attained the age
4 of 60 or more years on the date of her husband's retirement
5 on annuity. Such amount of widow's annuity shall not,
6 however, exceed the sum of $500 a month if the death occurs
7 before the effective date of this amendatory Act of 1991.
8 If such widow of such described employee shall not have
9 attained such age of 60 or more years on such date of her
10 husband's retirement on annuity, the amount provided in the
11 immediately preceding paragraph for a widow 60 or more years
12 of age on the date of her husband's retirement on annuity,
13 shall, in the case of such then younger widow, be reduced by
14 1/2 of 1 per cent for each month that her then attained age
15 was less than 60 years; except that such younger widow of an
16 employee retiring on or after July 1, 1985 with at least 30
17 years of service, shall not be subject to the reduction in
18 widow's annuity because of her age less than 60 on the date
19 of the employee's retirement.
20 (c) The foregoing provisions relating to minimum
21 annuities for widows shall not apply to the widow of any
22 former county employee receiving an annuity from the Fund on
23 June 11, 1965, who re-enters service as a county employee,
24 unless such employee renders at least 3 years of additional
25 service after the date of re-entry.
26 (d) An annuity being paid to a surviving spouse on
27 January 1, 1984 shall be increased by 10% and shall
28 thereafter be paid at the increased rate until the
29 termination of the annuity by death or other cause. The
30 annuity for a qualifying widow shall not exceed $500 per
31 month.
32 (e) The widow of any employee who dies while in service
33 on or after July 1, 1985 but prior to January 1, 1988, and
34 the widow of an employee who retires on or after July 1, 1985
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1 but prior to January 1, 1988 with at least 10 years of
2 service, and the widow of an employee who retires on or after
3 January 1, 1984 but prior to July 1, 1985 with at least 30
4 years of service, shall be entitled to an annuity equal to
5 one-half of the amount of annuity which her deceased husband
6 would have received had he retired immediately prior to his
7 death or one-half the amount of the originally granted
8 retirement annuity, whichever is applicable. Such widow's
9 annuity will be reduced 0.5% for each month that the widow's
10 attained age is less than age 60 on the date of the
11 employee's death in service or retirement if the employee's
12 death in service or retirement is before January 1, 1988;
13 except that such younger widow of an employee with at least
14 30 years of service shall not be subject to the reduction in
15 widow's annuity because of her age less than 60 on the date
16 of the employee's death in service or retirement.
17 The widow of an employee who dies in service on or after
18 January 1, 1988, or retires on or after January 1, 1988 with
19 at least 10 years of service, shall be entitled to an annuity
20 equal to 1/2 of the amount of annuity which her deceased
21 husband would have received had he retired immediately prior
22 to his death or 1/2 of the amount of the annuity which her
23 deceased husband received as of the date of his death,
24 whichever is applicable. Such widow's annuity shall be
25 reduced 0.5% for each month that the widow's attained age is
26 less than age 60 on the date of the employee's death if
27 employee's death in service or retirement is after January 1,
28 1988; except that such younger widow of an employee with at
29 least 30 years of service shall not be subject to the
30 reduction in widow's annuity because of her age on the date
31 of the employee's death.
32 In lieu of any other annuity provided by this Article,
33 the widow of an employee who dies in service on or after
34 January 1, 1992, or retires on or after January 1, 1992 with
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1 at least 10 years of service, shall be entitled to an annuity
2 equal to 1/2 of the amount of annuity which her deceased
3 husband would have received had he retired immediately prior
4 to his death or 1/2 of the amount of the annuity which her
5 deceased husband received as of the date of his death,
6 whichever is applicable. Such widow's annuity shall be
7 reduced 0.5% for each month that the widow's attained age is
8 less than age 55 on the date of the employee's death; except
9 that such younger widow of an employee with at least 30 years
10 of service shall not be subject to the reduction in widow's
11 annuity because of her age on the date of the employee's
12 death.
13 In lieu of any other annuity provided by this Article,
14 the widow of an employee who dies in service or withdraws
15 from service on or after January 1, 1992 but before January
16 1, 1993 at age 55 or over with at least 5 but less than 10
17 years of service, shall be entitled to an annuity equal to
18 half of the amount of annuity which her deceased husband
19 would have received had he retired immediately prior to his
20 death or half of the amount of the annuity which her deceased
21 husband received as of the date of his death, whichever is
22 applicable. This widow's annuity shall be reduced 0.5% for
23 each month that the widow's attained age is less than 60 on
24 the date of the employee's death.
25 However, in the case of an employee dying in service, the
26 amount of widow's annuity shall not be less than 10% of the
27 highest average annual salary for any 12 consecutive months
28 (4 consecutive years if withdrawal occurs before the
29 effective date of this amendatory Act of 1997) within the
30 last 10 years of service immediately preceding the date of
31 withdrawal. The maximum amount of annuity under this
32 paragraph shall not be limited to a dollar maximum. The
33 provisions of this paragraph shall not apply to the widow of
34 any former County employee receiving an annuity from the fund
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1 who re-enters service as a County employee, unless such
2 employee renders at least 3 years of additional service after
3 the date of re-entry.
4 (f) An annuity being paid to a surviving spouse on July
5 1, 1988, shall be increased on that date by 1% for each full
6 year that has elapsed from the date the annuity began.
7 (g) In lieu of any other annuity provided under this
8 Article, if the deceased employee was receiving a retirement
9 annuity at the time of his death and that death occurs on or
10 after January 1, 1993, the widow's annuity shall be 50% of
11 the deceased employee's retirement annuity at the time of
12 death, reduced by 0.5% for each month that the widow's age on
13 the date of death is less than 55, except that the reduction
14 does not apply if the deceased employee had at least 30 years
15 of service.
16 (Source: P.A. 86-273; 87-794; 87-1265.)
17 (40 ILCS 5/9-146.2 new)
18 Sec. 9-146.2. Automatic annual increase in widow's
19 annuity.
20 (a) Every widow's annuity, other than a term annuity,
21 shall be increased by an amount equal to 3% of the amount of
22 the annuity on January 1, 1998 or the January 1 occurring on
23 or immediately after the first anniversary of the deceased
24 employee's death, whichever occurs later.
25 On each January 1 after the date of the initial increase
26 under this Section, the widow's annuity shall be increased by
27 an amount equal to 3% of the amount of widow's annuity
28 payable at the time of the increase, including any increases
29 previously granted under this Article.
30 (b) Limitations on the maximum amount of widow's annuity
31 imposed under Section 9-150 do not apply to the annual
32 increases provided under this Section.
33 (c) The increases provided under this Section also apply
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1 to compensation annuities and supplemental annuities payable
2 under Section 9-147. The increases provided under this
3 Section do not apply to term annuities.
4 (40 ILCS 5/9-179.3) (from Ch. 108 1/2, par. 9-179.3)
5 Sec. 9-179.3. Optional plan of additional benefits and
6 contributions.
7 (a) While this plan is in effect, an employee may
8 establish additional optional credit for additional optional
9 benefits by electing in writing at any time to make
10 additional optional contributions. The employee may
11 discontinue making the additional optional contributions at
12 any time by notifying the fund in writing.
13 (b) Additional optional contributions for the additional
14 optional benefits shall be as follows:
15 (1) For service after the option is elected, an
16 additional contribution of 3% of salary shall be
17 contributed to the fund on the same basis and under the
18 same conditions as contributions required under Sections
19 9-170 and 9-176.
20 (2) For service before the option is elected, an
21 additional contribution of 3% of the salary for the
22 applicable period of service, plus interest at the
23 effective rate from the date of service to the date of
24 payment. All payments for past service must be paid in
25 full before credit is given. No additional optional
26 contributions may be made for any period of service for
27 which credit has been previously forfeited by acceptance
28 of a refund, unless the refund is repaid in full with
29 interest at the effective rate from the date of refund to
30 the date of repayment.
31 (c) Additional optional benefits shall accrue for all
32 periods of eligible service for which additional
33 contributions are paid in full. The additional benefit shall
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1 consist of an additional 1% for each year of service for
2 which optional contributions have been paid, based on the
3 highest average annual salary for any 12 consecutive months
4 (4 consecutive years in the case of a person who retires
5 before the effective date of this amendatory Act of 1997)
6 within the last 10 years of service immediately preceding the
7 date of withdrawal, to be added to the employee retirement
8 annuity benefits as otherwise computed under this Article.
9 The calculation of these additional benefits shall be subject
10 to the same terms and conditions as are used in the
11 calculation of retirement annuity under Section 9-134. The
12 additional benefit shall be included in the calculation of
13 the automatic annual increase in annuity, and in the
14 calculation of widow's annuity, where applicable. However no
15 additional benefits will be granted which produce a total
16 annuity greater than the applicable maximum established for
17 that type of annuity in this Article, and additional benefits
18 shall not apply to any benefit computed under Section
19 9-128.1.
20 (d) Refunds of additional optional contributions shall
21 be made on the same basis and under the same conditions as
22 provided under Sections 9-164, 9-166 and 9-167. Interest
23 shall be credited at the effective rate on the same basis and
24 under the same conditions as for other contributions.
25 (e) Optional contributions shall be accounted for in a
26 separate Optional Contribution Reserve.
27 (f) The tax levy, computed under Section 9-169, shall be
28 based on employee contributions including the amount of
29 optional additional employee contributions.
30 (g) Service eligible under this Section may include only
31 service as an employee of the County as defined in Section
32 9-108, and subject to Sections 9-219 and 9-220. No service
33 granted under Section 9-121.1, 9-121.4 or 9-179.2 shall be
34 eligible for optional service credit. No optional service
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1 credit may be established for any military service, or for
2 any service under any other Article of this Code. Optional
3 service credit may be established for any period of
4 disability paid from this fund, if the employee makes
5 additional optional contributions for such periods of
6 disability.
7 (h) This plan of optional benefits and contributions
8 shall not apply to any former county employee receiving an
9 annuity from the fund, who re-enters service as a County
10 employee, unless he renders at least 3 years of additional
11 service after the date of re-entry.
12 (i) The effective date of the optional plan of
13 additional benefits and contributions shall be July 1, 1985,
14 or the date upon which approval is received from the Internal
15 Revenue Service, whichever is later.
16 (j) This plan of additional benefits and contributions
17 shall expire July 1, 1997. No additional contributions may
18 be made after that date, and no additional benefits will
19 accrue after that date.
20 (Source: P.A. 86-1027; 87-794.)
21 Section 90. The State Mandates Act is amended by adding
22 Section 8.21 as follows:
23 (30 ILCS 805/8.21 new)
24 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
25 and 8 of this Act, no reimbursement by the State is required
26 for the implementation of any mandate created by this
27 amendatory Act of 1997.
28 Section 99. Effective date. This Act takes effect upon
29 becoming law.