State of Illinois
90th General Assembly
Legislation

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90_HB2337

      40 ILCS 5/14-114          from Ch. 108 1/2, par. 14-114
      40 ILCS 5/14-119          from Ch. 108 1/2, par. 14-119
      40 ILCS 5/14-121          from Ch. 108 1/2, par. 14-121
      40 ILCS 5/15-136          from Ch. 108 1/2, par. 15-136
      40 ILCS 5/15-136.3
      40 ILCS 5/15-145          from Ch. 108 1/2, par. 15-145
      40 ILCS 5/16-133.1        from Ch. 108 1/2, par. 16-133.1
      40 ILCS 5/16-143.1        from Ch. 108 1/2, par. 16-143.1
      40 ILCS 5/17-119          from Ch. 108 1/2, par. 17-119
      40 ILCS 5/17-122          from Ch. 108 1/2, par. 17-122
      30 ILCS 805/8.21 new
          Amends the State Employee, State Universities,  Downstate
      Teacher,  and Chicago Teacher Articles of the Pension Code to
      provide for a one-time increase  in  certain  retirement  and
      survivor's  annuities.   Amends  the  State  Mandates  Act to
      require  implementation  without  reimbursement.    Effective
      immediately.
                                                     LRB9006807EGfg
                                               LRB9006807EGfg
 1        AN  ACT in relation to public employee pensions, amending
 2    named Acts.
 3        Be it enacted by the People of  the  State  of  Illinois,
 4    represented in the General Assembly:
 5        Section  5.   The  Illinois  Pension  Code  is amended by
 6    changing Sections 14-114, 14-119, 14-121,  15-136,  15-136.3,
 7    15-145, 16-133.1, 16-143.1, 17-119, and 17-122 as follows:
 8        (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
 9        Sec. 14-114.  Automatic increase in retirement annuity.
10        (a)  Any person receiving a retirement annuity under this
11    Article  who  retires  having attained age 60, or who retires
12    before age 60 having at least 35 years of creditable service,
13    shall on January 1, next following the  first  full  year  of
14    retirement,  have  the  amount  of the then fixed and payable
15    monthly  retirement  annuity  increased   3%.    Any   person
16    receiving a retirement annuity under this Article who retires
17    before  attainment  of  age 60 and with less than 35 years of
18    creditable service shall have the amount  of  the  fixed  and
19    payable  retirement  annuity increased by 3% on the January 1
20    occurring on or next following (1) attainment of age  60,  or
21    (2)  the  first  anniversary  of retirement, whichever occurs
22    later.  However, for  persons  who  receive  the  alternative
23    retirement  annuity  under Section 14-110, references in this
24    subsection (a) to attainment of age 60  shall  be  deemed  to
25    refer  to attainment of age 55.  For a person receiving early
26    retirement incentives under Section 14-108.3 whose retirement
27    annuity began after January 1, 1992 pursuant to an  extension
28    granted  under  subsection  (e)  of  that  Section, the first
29    anniversary of retirement shall be deemed to  be  January  1,
30    1993.
31        On  each  January  1  following  the  date of the initial
                            -2-                LRB9006807EGfg
 1    increase  under  this  subsection,  the  employee's   monthly
 2    retirement annuity shall be increased by an additional 3%.
 3        Beginning January 1, 1990, all automatic annual increases
 4    payable   under   this  Section  shall  be  calculated  as  a
 5    percentage of the total annuity payable at the  time  of  the
 6    increase,  including  previous  increases  granted under this
 7    Article.
 8        (b)  The provisions of subsection  (a)  of  this  Section
 9    shall be applicable to an employee only if the employee makes
10    the additional contributions required after December 31, 1969
11    for  the purpose of the automatic increases for not less than
12    the equivalent of one full year. If an  employee  becomes  an
13    annuitant  before his additional contributions equal one full
14    year's contributions based on  his  salary  at  the  date  of
15    retirement, the employee may pay the necessary balance of the
16    contributions   to  the  system,  without  interest,  and  be
17    eligible  for  the  increasing  annuity  authorized  by  this
18    Section.
19        (c)  The provisions of subsection  (a)  of  this  Section
20    shall not be applicable to any annuitant who is on retirement
21    on  December  31,  1969,  and  thereafter  returns  to  State
22    service,  unless the member has established at least one year
23    of  additional  creditable  service  following  reentry  into
24    service.
25        (d)  In addition to other increases which may be provided
26    by this Section, on January 1, 1981  any  annuitant  who  was
27    receiving  a  retirement annuity on or before January 1, 1971
28    shall have his retirement annuity then being  paid  increased
29    $1 per month for each year of creditable service.  On January
30    1,  1982,  any  annuitant  who  began  receiving a retirement
31    annuity  on  or  before  January  1,  1977,  shall  have  his
32    retirement annuity then being paid increased $1 per month for
33    each year of creditable service.
34        On January 1, 1987, any annuitant who began  receiving  a
                            -3-                LRB9006807EGfg
 1    retirement  annuity  on or before January 1, 1977, shall have
 2    the monthly retirement annuity increased by an  amount  equal
 3    to  8¢  per  year  of  creditable service times the number of
 4    years that have elapsed since the annuity began.
 5        (d-1)  On January 1,  1998,  every  annuitant  who  began
 6    receiving  a  retirement annuity on or before January 1, 1991
 7    shall have the monthly retirement  annuity  increased  by  an
 8    amount equal to 25¢ multiplied by the number of full years of
 9    creditable  service  multiplied  by  the number of full years
10    that have elapsed since the annuity began.   Every  annuitant
11    who  begins  receiving  a retirement annuity after January 1,
12    1991 and before  January  1,  1998  shall  have  the  monthly
13    retirement annuity increased on the January 1 occurring on or
14    next  following  the seventh anniversary of retirement, by an
15    amount equal to $1.75 multiplied by the number of full  years
16    of  creditable  service  upon which the retirement annuity is
17    based.  The increase under this subsection shall be  included
18    in  the  calculation  of  increases granted simultaneously or
19    thereafter under subsection (a).
20        (e)  Every person who receives the alternative retirement
21    annuity under Section 14-110 and who is eligible  to  receive
22    the  3%  increase  under  subsection  (a) on January 1, 1986,
23    shall also receive  on  that  date  a  one-time  increase  in
24    retirement  annuity  equal  to the difference between (1) his
25    actual  retirement  annuity  on  that  date,  including   any
26    increases  received  under subsection (a), and (2) the amount
27    of retirement annuity he would have received on that date  if
28    the  amendments  to  subsection (a) made by Public Act 84-162
29    had been in effect since the date of his retirement.
30    (Source: P.A. 86-273; 87-1265.)
31        (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
32        Sec. 14-119.  Amount of widow's annuity.
33        (a)  The widow's annuity shall be 50% of  the  amount  of
                            -4-                LRB9006807EGfg
 1    retirement annuity payable to the member on the date of death
 2    while  on  retirement  if an annuitant, or on the date of his
 3    death while in service if an employee, regardless of his  age
 4    on  such date, or on the date of withdrawal if death occurred
 5    after termination of service under the conditions  prescribed
 6    in the preceding Section.
 7        (b)  If  an eligible widow, regardless of age, has in her
 8    care any unmarried child or children of the member under  age
 9    18 (under age 22 if a full-time student), the widow's annuity
10    shall  be  increased  in  the  amount of 5% of the retirement
11    annuity for each such child, but the combined payments for  a
12    widow  and  children shall not exceed 66 2/3% of the member's
13    earned retirement annuity.
14        The amount of retirement annuity from which  the  widow's
15    annuity is derived shall be that earned by the member without
16    regard  to whether he attained age 60 prior to his withdrawal
17    under the conditions stated or prior to his death.
18        (c)  Adopted children shall be considered as children  of
19    the   member  only  if  the  proceedings  for  adoption  were
20    commenced at least 1 year prior to the member's death.
21        Marriage of a child shall render the child ineligible for
22    further consideration in the increase in the  amount  of  the
23    widow's annuity.
24        Attainment  of  age  18  (age  22 if a full-time student)
25    shall render a child ineligible for further consideration  in
26    the  increase  of the widow's annuity, but the annuity to the
27    widow shall be continued thereafter, without  regard  to  her
28    age at that time.
29        (d)  A  widow's annuity payable on account of any covered
30    employee who shall have been a covered employee for at  least
31    18  months shall be reduced by 1/2 of the amount of survivors
32    benefits to which his beneficiaries are  eligible  under  the
33    provisions  of  the  Federal Social Security Act, except that
34    (1) the amount of any  widow's  annuity  payable  under  this
                            -5-                LRB9006807EGfg
 1    Article  shall not be reduced by reason of any increase under
 2    that Act which occurs  after  the  offset  required  by  this
 3    subsection  is  first  applied  to  that annuity, and (2) for
 4    benefits granted on or after  January  1,  1992,  the  offset
 5    under  this subsection (d) shall not exceed 50% of the amount
 6    of widow's annuity otherwise payable.
 7        (e)  Upon the death of a recipient of a  widow's  annuity
 8    the   excess,   if      any,   of  the  member's  accumulated
 9    contributions  plus  credited  interest  over   all   annuity
10    payments  to the member and widow, exclusive of the $500 lump
11    sum payment, shall be paid to the named  beneficiary  of  the
12    widow, or if none has been named, to the estate of the widow,
13    provided no reversionary annuity is payable.
14        (f)  On  January  1,  1981,  any  recipient  of a widow's
15    annuity who was receiving a  widow's  annuity  on  or  before
16    January  1,  1971,  shall have her widow's annuity then being
17    paid increased by 1% for each full  year  which  has  elapsed
18    from the date the widow's annuity began.  On January 1, 1982,
19    any  recipient  of  a  widow's  annuity who began receiving a
20    widow's annuity after January 1, 1971, but before January  1,
21    1981,   shall  have  her  widow's  annuity  then  being  paid
22    increased by 1% for each full year which has elapsed from the
23    date the widow's annuity began.   On  January  1,  1987,  any
24    recipient  of  a  widow's  annuity  who  began  receiving the
25    widow's annuity on or before January 1, 1977, shall have  the
26    monthly  widow's  annuity  increased by $1 for each full year
27    which has elapsed since the date the annuity began.
28        (f-1)  On  January  1,  1998,  every  widow   who   began
29    receiving  a  widow's  annuity  on  or before January 1, 1991
30    shall have the monthly widow's annuity increased by an amount
31    equal to 25¢ multiplied by the number of full  years  of  the
32    deceased spouse's creditable service multiplied by the sum of
33    (i)  the  number  of  full  years that have elapsed since the
34    widow's annuity began and (ii) the number of full  years,  if
                            -6-                LRB9006807EGfg
 1    any,  during  which the deceased spouse received a retirement
 2    annuity under this Article.  Every widow who begins receiving
 3    a widow's annuity after January 1, 1991 and before January 1,
 4    1998 shall have the monthly widow's annuity increased on  the
 5    January   1  occurring  on  or  next  following  the  seventh
 6    anniversary of the commencement of the widow's annuity, by an
 7    amount equal to 25¢ multiplied by the number of full years of
 8    the deceased spouse's creditable service  multiplied  by  the
 9    sum  of  (i) the number of full years that have elapsed since
10    the widow's annuity began and (ii) the number of full  years,
11    if   any,   during  which  the  deceased  spouse  received  a
12    retirement annuity under this Article.   The  increase  under
13    this  subsection  shall  be  included  in  the calculation of
14    increases  granted   simultaneously   or   thereafter   under
15    subsection (g).
16        (g)  Beginning  January  1,  1990,  every widow's annuity
17    shall be increased (1) on each  January  1  occurring  on  or
18    after  the commencement of the annuity if the deceased member
19    died while receiving a retirement annuity, or  (2)  in  other
20    cases,  on  each  January  1  occurring on or after the first
21    anniversary of the commencement of the annuity, by an  amount
22    equal  to  3% of the current amount of the annuity, including
23    any previous increases under  this  Article.  Such  increases
24    shall apply without regard to whether the deceased member was
25    in  service  on  or  after  the  effective date of Public Act
26    86-1488, but shall not accrue for any period prior to January
27    1, 1990.
28    (Source: P.A. 90-448, eff. 8-16-97.)
29        (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
30        Sec. 14-121.  Amount of survivors annuity.   A  survivors
31    annuity  beneficiary  shall  be  entitled  upon  death of the
32    member to a single sum payment of $1,000,  payable  pro  rata
33    among all persons entitled thereto, together with a survivors
                            -7-                LRB9006807EGfg
 1    annuity  payable  at  the  rates  and  under  the  conditions
 2    specified in this Article.
 3        (a)  If  the  survivors  annuity beneficiary is a spouse,
 4    the  survivors  annuity  shall  be  30%  of   final   average
 5    compensation subject to a maximum payment of $400 per month.
 6        (b)  If an eligible child or children under the care of a
 7    spouse  also  survives  the  member,  such  spouse as natural
 8    guardian of the child or children shall receive, in  addition
 9    to  the  foregoing annuity, 20% of final average compensation
10    on account of each  such  child  and  10%  of  final  average
11    compensation divided pro rata among such children, subject to
12    a   maximum  payment  on  account  of  all  survivor  annuity
13    beneficiaries of $600 per month, or 80% of the member's final
14    average compensation, whichever is the lesser.
15        (c)  If   the   survivors    annuity    beneficiary    or
16    beneficiaries consists of an unmarried child or children, the
17    amount  of  survivors  annuity  shall be 20% of final average
18    compensation  to  each  child,  and  10%  of  final   average
19    compensation   divided  pro  rata  among  all  such  children
20    entitled to such annuity, subject to a maximum payment to all
21    children combined of $600 per month or 80%  of  the  member's
22    final average compensation, whichever is the lesser.
23        (d)  If  the survivors annuity beneficiary is one or more
24    dependent parents, the annuity shall be 20% of final  average
25    compensation   to  each  parent  and  10%  of  final  average
26    compensation divided pro rata among the parents  who  qualify
27    for  this  annuity,  subject  to  a  maximum  payment to both
28    dependent parents of $400 per month.
29        (e)  The survivors annuity to  the  spouse,  children  or
30    dependent  parents  of  a member whose death occurs after the
31    date of last withdrawal, or after  retirement,  or  while  in
32    service  following  reentry into service after retirement but
33    before  completing  1  1/2  years  of  additional  creditable
34    service, shall not exceed the lesser of 80% of  the  member's
                            -8-                LRB9006807EGfg
 1    earned retirement annuity at the date of death or the maximum
 2    previously established in this Section.
 3        (f)  In   applying   the  limitation  prescribed  on  the
 4    combined  payments   to   2   or   more   survivors   annuity
 5    beneficiaries,  the  annuity  on  account of each beneficiary
 6    shall be reduced pro rata until such time as  the  number  of
 7    beneficiaries makes the reduction no longer applicable.
 8        (g)  A  survivors  annuity  payable  on  account  of  any
 9    covered  employee  who shall have been a covered employee for
10    at least 18 months at  date  of  death  or  last  withdrawal,
11    whichever  is  the  later,  shall  be  reduced  by 1/2 of the
12    survivors benefits to which his  beneficiaries  are  eligible
13    under  the  federal  Social Security Act, except that (1) the
14    survivors annuity payable under this  Article  shall  not  be
15    reduced by any increase under that Act which occurs after the
16    offset  required  by this subsection is first applied to that
17    annuity, and (2) for benefits granted on or after January  1,
18    1992,  the  offset under this subsection (g) shall not exceed
19    50% of the amount of survivors annuity otherwise payable.
20        (h)  The minimum payment to a beneficiary hereunder shall
21    be $60 per month, which shall be reduced in  accordance  with
22    the  limitation  prescribed  on  the combined payments to all
23    beneficiaries of a member.
24        (i)  Subject to  the  conditions  set  forth  in  Section
25    14-120,  the  minimum total survivors annuity benefit payable
26    to the survivors annuity beneficiaries of a  deceased  member
27    or  annuitant whose death occurs on or after January 1, 1984,
28    shall be 50% of the amount of retirement annuity that was  or
29    would have been payable to the deceased on the date of death,
30    regardless  of  the age of the deceased on such date.  If the
31    minimum total benefit provided by this subsection exceeds the
32    maximum otherwise imposed by this Section, the minimum  total
33    benefit  shall  nevertheless be payable.  Any increase in the
34    total survivors annuity benefit resulting from the  operation
                            -9-                LRB9006807EGfg
 1    of  this  subsection  shall  be  divided  among the survivors
 2    annuity beneficiaries of the deceased in proportion to  their
 3    shares  of  the  total  survivors  annuity  benefit otherwise
 4    payable under this Section.
 5        (j)  Any  survivors  annuity  beneficiary  whose  annuity
 6    terminates due to any condition  specified  in  this  Article
 7    other than death shall be entitled to a refund of the excess,
 8    if  any,  of the accumulated contributions of the member plus
 9    credited  interest  over  all  payments  to  the  member  and
10    beneficiary or beneficiaries, exclusive  of  the  single  sum
11    payment   of   $1,000,   provided   no  future  survivors  or
12    reversionary annuity benefits are payable.
13        (k)  Upon the death of the last eligible recipient  of  a
14    survivors  annuity  the  excess,  if  any,  of  the  member's
15    accumulated  contributions  plus  credited  interest over all
16    annuity payments to the member and survivors exclusive of the
17    single sum payment of $1000,  shall  be  paid  to  the  named
18    beneficiary  of  the  last  eligible survivor, or if none has
19    been named, to the estate  of  the  last  eligible  survivor,
20    provided no reversionary annuity is payable.
21        (l)  On January 1, 1981, any survivor who was receiving a
22    survivors  annuity  on  or before January 1, 1971, shall have
23    his survivors annuity then being paid  increased  by  1%  for
24    each  full  year  which has elapsed from the date the annuity
25    began.  On January 1, 1982, any survivor who began  receiving
26    a  survivor's  annuity  after  January  1,  1971,  but before
27    January 1, 1981, shall have his survivor's annuity then being
28    paid increased by 1% for each full year that has elapsed from
29    the date the annuity began. On January 1, 1987, any  survivor
30    who began receiving a survivor's annuity on or before January
31    1,  1977, shall have the monthly survivor's annuity increased
32    by $1 for each full year which has elapsed since the date the
33    survivor's annuity began.
34        (m)  Beginning January 1, 1990, every survivor's  annuity
                            -10-               LRB9006807EGfg
 1    shall  be  increased  (1)  on  each January 1 occurring on or
 2    after the commencement of the annuity if the deceased  member
 3    died  while  receiving  a retirement annuity, or (2) in other
 4    cases, on each January 1 occurring  on  or  after  the  first
 5    anniversary  of the commencement of the annuity, by an amount
 6    equal to 3% of the current amount of the  annuity,  including
 7    any  previous  increases  under this Article.  Such increases
 8    shall apply without regard to whether the deceased member was
 9    in service on or after  the  effective  date  of  Public  Act
10    86-1488, but shall not accrue for any period prior to January
11    1, 1990.
12        (n)  On   January  1,  1998,  every  survivor  who  began
13    receiving a survivor's annuity on or before January  1,  1991
14    shall  have  the  monthly  survivor's annuity increased by an
15    amount equal to 25¢ multiplied by the number of full years of
16    the deceased's creditable service multiplied by  the  sum  of
17    (i)  the  number  of  full  years that have elapsed since the
18    survivor's annuity began and (ii) the number of  full  years,
19    if  any,  during  which  the  deceased  received a retirement
20    annuity under  this  Article.    Every  survivor  who  begins
21    receiving  a  survivor's  annuity  after  January 1, 1991 and
22    before January 1, 1998  shall  have  the  monthly  survivor's
23    annuity  increased  on  the  January  1  occurring on or next
24    following the seventh anniversary of the commencement of  the
25    survivor's  annuity,  by an amount equal to 25¢ multiplied by
26    the number of full years of the deceased's creditable service
27    multiplied by the sum of (i) the number of  full  years  that
28    have  elapsed since the survivor's annuity began and (ii) the
29    number of full years,  if  any,  during  which  the  deceased
30    received  a  retirement  annuity  under  this  Article.   The
31    increase under this  subsection  shall  be  included  in  the
32    calculation of increases granted simultaneously or thereafter
33    under subsection (m).
34    (Source: P.A. 86-273; 86-1488; 87-794.)
                            -11-               LRB9006807EGfg
 1        (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
 2        Sec. 15-136.  Retirement annuities - Amount.
 3        (a)  The  amount  of  the  retirement  annuity  shall  be
 4    determined  by whichever of the following rules is applicable
 5    and provides the largest annuity:
 6        Rule 1:  The retirement annuity shall be 1.67%  of  final
 7    rate  of  earnings for each of the first 10 years of service,
 8    1.90% for each of the next 10 years  of  service,  2.10%  for
 9    each  year  of  service in excess of 20 but not exceeding 30,
10    and 2.30% for each year in excess of 30; or for  persons  who
11    retire on or after January 1, 1998, 2.2% of the final rate of
12    earnings  for each year of service.  However, except that the
13    annuity for those  persons  having  made  an  election  under
14    Section 15-154(a-1) shall be calculated and payable under the
15    portable   retirement   benefit   program   pursuant  to  the
16    provisions of Section 15-136.4.
17        Rule 2:  The retirement annuity shall be the sum  of  the
18    following,   determined   from   amounts   credited   to  the
19    participant in accordance with the actuarial tables  and  the
20    prescribed  rate  of  interest  in  effect  at  the  time the
21    retirement annuity begins:
22             (i)  The normal annuity which can be provided on  an
23        actuarially  equivalent  basis, by the accumulated normal
24        contributions as of the date the annuity begins; and
25             (ii)  an annuity from employer contributions  of  an
26        amount which can be provided on an actuarially equivalent
27        basis  from  the accumulated normal contributions made by
28        the  participant  under  Section  15-113.6  and   Section
29        15-113.7  plus  1.4  times  all  other accumulated normal
30        contributions made by the participant,  except  that  the
31        annuity  for  those persons having made an election under
32        Section 15-154(a-1) shall be calculated and payable under
33        the portable retirement benefit program pursuant  to  the
34        provisions of Section 15-136.4.
                            -12-               LRB9006807EGfg
 1        Rule  3:  The  retirement annuity of a participant who is
 2    employed at least one-half time during the  period  on  which
 3    his or her final rate of earnings is based, shall be equal to
 4    the   participant's  years  of  service  not  to  exceed  30,
 5    multiplied by (1) $96 if  the  participant's  final  rate  of
 6    earnings  is  less than $3,500, (2) $108 if the final rate of
 7    earnings is at least $3,500 but less than $4,500, (3) $120 if
 8    the final rate of earnings is at least $4,500 but  less  than
 9    $5,500,  (4)  $132  if the final rate of earnings is at least
10    $5,500 but less than $6,500, (5) $144 if the  final  rate  of
11    earnings is at least $6,500 but less than $7,500, (6) $156 if
12    the  final  rate of earnings is at least $7,500 but less than
13    $8,500, (7) $168 if the final rate of earnings  is  at  least
14    $8,500  but  less than $9,500, and (8) $180 if the final rate
15    of earnings is $9,500 or more, except that  the  annuity  for
16    those   persons   having   made  an  election  under  Section
17    15-154(a-1)  shall  be  calculated  and  payable  under   the
18    portable   retirement   benefit   program   pursuant  to  the
19    provisions of Section 15-136.4.
20        Rule 4:  A participant who is at least age 50 and has  25
21    or  more years of service as a police officer or firefighter,
22    and a participant who is age 55 or over and has at  least  20
23    but  less  than  25  years  of service as a police officer or
24    firefighter, shall be entitled to a retirement annuity  of  2
25    1/4%  of  the final rate of earnings for each of the first 10
26    years of service as a police officer or firefighter,  2  1/2%
27    for  each of the next 10 years of service as a police officer
28    or firefighter, and 2 3/4% for each  year  of  service  as  a
29    police  officer  or  firefighter in excess of 20, except that
30    the annuity for those persons having made an  election  under
31    Section 15-154(a-1) shall be calculated and payable under the
32    portable   retirement   benefit   program   pursuant  to  the
33    provisions of Section 15-136.4.  The retirement  annuity  for
34    all  other  service  shall  be computed under Rule 1, payable
                            -13-               LRB9006807EGfg
 1    under the portable retirement benefit program pursuant to the
 2    provisions of Section 15-136.4, if applicable.
 3        (b)  The retirement annuity provided under Rules 1 and  3
 4    above  shall  be  reduced  by  1/2  of  1% for each month the
 5    participant is under  age  60  at  the  time  of  retirement.
 6    However,  this  reduction  shall  not  apply in the following
 7    cases:
 8             (1)  For a  disabled  participant  whose  disability
 9        benefits  have  been  discontinued  because he or she has
10        exhausted  eligibility  for  disability  benefits   under
11        clause (6) of Section 15-152;
12             (2)  For  a  participant who has at least the number
13        of years of service required to retire at any  age  under
14        subsection (a) of Section 15-135; or
15             (3)  For  that portion of a retirement annuity which
16        has  been  provided  on  account  of   service   of   the
17        participant  during  periods when he or she performed the
18        duties of a  police  officer  or  firefighter,  if  these
19        duties  were  performed  for at least 5 years immediately
20        preceding the date the retirement annuity is to begin.
21        (c)  The maximum retirement annuity provided under  Rules
22    1,  2,  and  4 shall be the lesser of (1) the annual limit of
23    benefits as specified in Section 415 of the Internal  Revenue
24    Code  of  1986,  as  such Section may be amended from time to
25    time and as such benefit limits  shall  be  adjusted  by  the
26    Commissioner  of  Internal Revenue, and (2) 80% of final rate
27    of earnings.
28        (d)  An annuitant whose status as an employee  terminates
29    after  August  14,  1969 shall receive automatic increases in
30    his or her retirement annuity as follows:
31        Effective January 1 immediately following  the  date  the
32    retirement  annuity  begins,  the  annuitant shall receive an
33    increase in his or her monthly retirement annuity  of  0.125%
34    of the monthly retirement annuity provided under Rule 1, Rule
                            -14-               LRB9006807EGfg
 1    2,  Rule  3, or Rule 4, contained in this Section, multiplied
 2    by the number of full months which elapsed from the date  the
 3    retirement  annuity  payments  began to January 1, 1972, plus
 4    0.1667% of such annuity, multiplied by  the  number  of  full
 5    months  which  elapsed  from January 1, 1972, or the date the
 6    retirement annuity payments began,  whichever  is  later,  to
 7    January 1, 1978, plus 0.25% of such annuity multiplied by the
 8    number  of full months which elapsed from January 1, 1978, or
 9    the date the retirement annuity payments began, whichever  is
10    later, to the effective date of the increase.
11        The  annuitant  shall  receive  an increase in his or her
12    monthly retirement  annuity  on  each  January  1  thereafter
13    during  the  annuitant's  life  of  3% of the monthly annuity
14    provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
15    this Section.  The change made under this subsection by  P.A.
16    81-970  is  effective  January  1,  1980  and applies to each
17    annuitant whose status as an employee  terminates  before  or
18    after that date.
19        Beginning January 1, 1990, all automatic annual increases
20    payable   under   this  Section  shall  be  calculated  as  a
21    percentage of the total annuity payable at the  time  of  the
22    increase,  including  all  increases previously granted under
23    this Article.
24        The change made in this subsection  by  P.A.  85-1008  is
25    effective  January 26, 1988, and is applicable without regard
26    to whether status as an employee terminated before that date.
27        (e)  If, on January 1, 1987, or the date  the  retirement
28    annuity payment period begins, whichever is later, the sum of
29    the  retirement  annuity  provided  under Rule 1 or Rule 2 of
30    this Section and  the  automatic  annual  increases  provided
31    under  the  preceding subsection or Section 15-136.1, amounts
32    to less than the retirement annuity which would  be  provided
33    by  Rule  3,  the retirement annuity shall be increased as of
34    January 1, 1987, or the date the retirement  annuity  payment
                            -15-               LRB9006807EGfg
 1    period  begins, whichever is later, to the amount which would
 2    be provided by Rule 3 of this Section. Such increased  amount
 3    shall  be considered as the retirement annuity in determining
 4    benefits provided under other Sections of this Article.  This
 5    paragraph  applies  without  regard  to  whether status as an
 6    employee  terminated  before  the  effective  date  of   this
 7    amendatory  Act  of  1987,  provided  that  the annuitant was
 8    employed at least one-half time during the  period  on  which
 9    the final rate of earnings was based.
10        (f)  A participant is entitled to such additional annuity
11    as may be provided on an actuarially equivalent basis, by any
12    accumulated  additional  contributions  to his or her credit.
13    However, the additional contributions made by the participant
14    toward the automatic increases in annuity provided under this
15    Section shall not be taken into account  in  determining  the
16    amount of such additional annuity.
17        (g)  If,  (1)  by law, a function of a governmental unit,
18    as defined by Section 20-107 of this Code, is transferred  in
19    whole  or  in  part  to  an  employer,  and (2) a participant
20    transfers employment from  such  governmental  unit  to  such
21    employer  within 6 months after the transfer of the function,
22    and (3) the sum of (A) the annuity payable to the participant
23    under Rule 1, 2, or 3 of this Section  (B)  all  proportional
24    annuities  payable to the participant by all other retirement
25    systems covered by Article 20, and (C)  the  initial  primary
26    insurance  amount  to which the participant is entitled under
27    the Social Security Act, is less than the retirement  annuity
28    which  would  have  been  payable if all of the participant's
29    pension credits  validated  under  Section  20-109  had  been
30    validated  under this system, a supplemental annuity equal to
31    the difference in  such  amounts  shall  be  payable  to  the
32    participant.
33        (h)  On January 1, 1981, an annuitant who was receiving a
34    retirement  annuity  on  or before January 1, 1971 shall have
                            -16-               LRB9006807EGfg
 1    his or her retirement annuity then being  paid  increased  $1
 2    per  month for each year of creditable service. On January 1,
 3    1982, an annuitant  whose  retirement  annuity  began  on  or
 4    before  January  1,  1977,  shall  have his or her retirement
 5    annuity then being paid increased $1 per month for each  year
 6    of creditable service.
 7        (i)  On  January  1, 1987, any annuitant whose retirement
 8    annuity began on or before January 1, 1977,  shall  have  the
 9    monthly retirement annuity increased by an amount equal to 8¢
10    per year of creditable service times the number of years that
11    have elapsed since the annuity began.
12        (j)  On  January  1,  1998,  every  annuitant  who  began
13    receiving  a  retirement annuity on or before January 1, 1991
14    shall have the monthly retirement  annuity  increased  by  an
15    amount equal to 25¢ multiplied by the number of full years of
16    creditable  service  multiplied  by  the number of full years
17    that have elapsed since the annuity began.   Every  annuitant
18    who  begins  receiving  a retirement annuity after January 1,
19    1991 and before  January  1,  1998  shall  have  the  monthly
20    retirement annuity increased on the January 1 occurring on or
21    next  following  the seventh anniversary of retirement, by an
22    amount equal to $1.75 multiplied by the number of full  years
23    of  creditable  service  upon which the retirement annuity is
24    based.  The increase under this subsection shall be  included
25    in  the  calculation  of  increases granted simultaneously or
26    thereafter under subsection (d).
27    (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
28    eff. 8-16-97; revised 8-21-97.)
29        (40 ILCS 5/15-136.3)
30        Sec. 15-136.3. Minimum retirement annuity.
31        (a)  Beginning  January  1,  1997,  any  person  who   is
32    receiving  a  monthly  retirement  annuity under this Article
33    which, after inclusion of  (1)  all  one-time  and  automatic
                            -17-               LRB9006807EGfg
 1    annual  increases  to  which  the person is entitled, (2) any
 2    supplemental annuity payable under Section 15-136.1, and  (3)
 3    any amount deducted under Section 15-138 or 15-140 to provide
 4    a  reversionary  annuity,  is  less  than the minimum monthly
 5    retirement benefit amount specified in subsection (b) of this
 6    Section, shall be entitled to a monthly supplemental  payment
 7    equal to the difference.
 8        (b)  For  purposes  of the calculation in subsection (a),
 9    the minimum monthly retirement benefit amount is the  sum  of
10    $25  for  each  year of service credit, up to a maximum of 30
11    years of service, plus the amount of the increase received by
12    the annuitant under subsection (j) of Section 15-136, if any.
13        (c)  This Section applies  to  all  persons  receiving  a
14    retirement  annuity  under  this  Article,  without regard to
15    whether or not employment terminated prior to  the  effective
16    date of this Section.
17    (Source: P.A. 89-616, eff. 8-9-96.)
18        (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
19        Sec.  15-145.   Survivors  insurance benefits; Conditions
20    and amounts.
21        (a)  The survivors insurance benefits provided under this
22    Section  shall  be  payable  upon  the   death   of   (1)   a
23    participating  employee with at least 1 1/2 years of service,
24    (2) a participant who terminated employment with at least  10
25    years  of  service,  and  (3)  an  annuitant  in receipt of a
26    retirement annuity or  disability  retirement  annuity  under
27    this Article.
28        Service  under  the State Employees' Retirement System of
29    Illinois, the Teachers' Retirement System  of  the  State  of
30    Illinois   and   the  Public  School  Teacher's  Pension  and
31    Retirement Fund of Chicago shall be considered in determining
32    eligibility for survivors benefits under this Section.
33        If by law, a function of a governmental unit, as  defined
                            -18-               LRB9006807EGfg
 1    by  Section  20-107, is transferred in whole or in part to an
 2    employer, and an  employee  transfers  employment  from  this
 3    governmental  unit to such employer within 6 months after the
 4    transfer  of  this  function,  the  service  credits  in  the
 5    governmental  unit's  retirement  system  which   have   been
 6    validated   under  Section  20-109  shall  be  considered  in
 7    determining eligibility for  survivors  benefits  under  this
 8    Section.
 9        (b)  A  surviving spouse of a deceased participant, or of
10    a  deceased  annuitant  who   had   a   survivors   insurance
11    beneficiary  at  the  time  of  retirement,  shall  receive a
12    survivors annuity of 30%  of  the  final  rate  of  earnings.
13    Payments  shall  begin on the day following the participant's
14    or annuitant's death or the date the surviving spouse attains
15    age 50, whichever is later, and continue until the  death  of
16    the  surviving  spouse.   The annuity shall be payable to the
17    surviving spouse  prior  to  attainment  of  age  50  if  the
18    surviving   spouse   has  in  his  or  her  care  a  deceased
19    participant's or annuitant's dependent unmarried child  under
20    age  18 (under age 22 if a full-time student) who is eligible
21    for a survivors annuity.  Remarriage of  a  surviving  spouse
22    prior to attainment of age 55 shall disqualify him or her for
23    the receipt of a survivors annuity.
24        (c)  Each  dependent  unmarried child under age 18 (under
25    age 22 if a full-time student) of a deceased participant,  or
26    of  a  deceased  annuitant  who  had  a  survivors  insurance
27    beneficiary  at  the  time  of  his  or her retirement, shall
28    receive a survivors annuity equal to the sum of  (1)  20%  of
29    the  final rate of earnings, and (2) 10% of the final rate of
30    earnings divided by the number of children entitled  to  this
31    benefit.   Payments  shall  begin  on  the  day following the
32    participant's or annuitant's death  and  continue  until  the
33    child marries, dies, or attains age 18 (age 22 if a full-time
34    student).   If the child is in the care of a surviving spouse
                            -19-               LRB9006807EGfg
 1    who is eligible for survivors insurance benefits, the child's
 2    benefit shall be paid to the surviving spouse.
 3        Each  unmarried  child  over  age  18   of   a   deceased
 4    participant  or  of a deceased annuitant who had a survivor's
 5    insurance beneficiary at the time of his or  her  retirement,
 6    and  who  was  dependent upon the participant or annuitant by
 7    reason of a physical or mental disability which  began  prior
 8    to  the date the child attained age 18 (age 22 if a full-time
 9    student), shall receive a survivor's annuity equal to the sum
10    of (1) 20% of the final rate of earnings, and (2) 10% of  the
11    final  rate  of  earnings  divided  by the number of children
12    entitled to survivors benefits.  Payments shall begin on  the
13    day  following  the  participant's  or  annuitant's death and
14    continue until the child  marries,  dies,  or  is  no  longer
15    disabled.   If the child is in the care of a surviving spouse
16    who is eligible for survivors insurance benefits, the child's
17    benefit may  be  paid  to  the  surviving  spouse.   For  the
18    purposes  of  this  Section,  disability  means  inability to
19    engage in any substantial gainful activity by reason  of  any
20    medically determinable physical or mental impairment that can
21    be  expected  to result in death or that has lasted or can be
22    expected to last for a continuous  period  of  at  least  one
23    year.
24        (d)  Each  dependent parent of a deceased participant, or
25    of  a  deceased  annuitant  who  had  a  survivors  insurance
26    beneficiary at the time  of  his  or  her  retirement,  shall
27    receive  a  survivors  annuity equal to the sum of (1) 20% of
28    final rate of earnings, and (2) 10% of final rate of earnings
29    divided by the number of parents who qualify for the benefit.
30    Payments shall begin when the parent reaches age  55  or  the
31    day   following   the  participant's  or  annuitant's  death,
32    whichever is later,  and  continue  until  the  parent  dies.
33    Remarriage  of  a  parent prior to attainment of age 55 shall
34    disqualify the parent for the receipt of a survivors annuity.
                            -20-               LRB9006807EGfg
 1        (e)  In addition to the survivors annuity provided above,
 2    each survivors insurance beneficiary shall, upon death of the
 3    participant or annuitant,  receive  a  lump  sum  payment  of
 4    $1,000 divided by the number of such beneficiaries.
 5        (f)  The  changes  made  in  this  Section  by Public Act
 6    81-712  pertaining  to  survivors  annuities  in   cases   of
 7    remarriage  prior  to  age  55  shall apply to each survivors
 8    insurance beneficiary who  remarries  after  June  30,  1979,
 9    regardless  of  the  date  that  the participant or annuitant
10    terminated his employment or died.
11        (g)  On January 1, 1981, any person who was  receiving  a
12    survivors annuity on or before January 1, 1971 shall have the
13    survivors  annuity  then  being paid increased by 1% for each
14    full year which has elapsed from the date the annuity  began.
15    On  January  1,  1982, any survivor whose annuity began after
16    January 1, 1971, but before January 1, 1981, shall  have  the
17    survivor's  annuity  then being paid increased by 1% for each
18    year which has elapsed from the date the  survivor's  annuity
19    began. On January 1, 1987, any survivor who began receiving a
20    survivor's  annuity  on or before January 1, 1977, shall have
21    the monthly survivor's annuity increased by $1 for each  full
22    year  which has elapsed since the date the survivor's annuity
23    began.
24        (g-1)  On January  1,  1998,  every  survivor  who  began
25    receiving  a  survivor's annuity on or before January 1, 1991
26    shall have the monthly survivor's  annuity  increased  by  an
27    amount equal to 25¢ multiplied by the number of full years of
28    the  deceased's  creditable  service multiplied by the sum of
29    (i) the number of full years  that  have  elapsed  since  the
30    survivor's  annuity  began and (ii) the number of full years,
31    if any, during  which  the  deceased  received  a  retirement
32    annuity  under  this  Article.    Every  survivor  who begins
33    receiving a survivor's annuity  after  January  1,  1991  and
34    before  January  1,  1998  shall  have the monthly survivor's
                            -21-               LRB9006807EGfg
 1    annuity increased on the  January  1  occurring  on  or  next
 2    following  the seventh anniversary of the commencement of the
 3    survivor's annuity, by an amount equal to 25¢  multiplied  by
 4    the number of full years of the deceased's creditable service
 5    multiplied  by  the  sum of (i) the number of full years that
 6    have elapsed since the survivor's annuity began and (ii)  the
 7    number  of  full  years,  if  any,  during which the deceased
 8    received a  retirement  annuity  under  this  Article.    The
 9    increase  under  this  subsection  shall  be  included in the
10    calculation of increases granted simultaneously or thereafter
11    under subsection (j).
12        (h)  If the  sum  of  the  lump  sum  and  total  monthly
13    survivor  benefits  payable under this Section upon the death
14    of a participant amounts to less than the sum  of  the  death
15    benefits  payable  under items (2) and (3) of Section 15-141,
16    the difference shall be paid in a lump sum to the beneficiary
17    of the participant who  is  living  on  the  date  that  this
18    additional amount becomes payable.
19        (i)  If  the  sum  of  the  lump  sum  and  total monthly
20    survivor benefits payable under this Section upon  the  death
21    of  an annuitant receiving a retirement annuity or disability
22    retirement annuity amounts to less  than  the  death  benefit
23    payable under Section 15-142, the difference shall be paid to
24    the  beneficiary  of  the annuitant who is living on the date
25    that this additional amount becomes payable.
26        (j)  Effective on the later of (1) January  1,  1990,  or
27    (2)  the  January  1  on  or next after the date on which the
28    survivor annuity begins, if the deceased  member  died  while
29    receiving  a  retirement  annuity,  or in all other cases the
30    January 1 nearest the  first  anniversary  of  the  date  the
31    survivor  annuity  payments  begin, every survivors insurance
32    beneficiary shall receive an increase in his or  her  monthly
33    survivors annuity of 3%.  On each January 1 after the initial
34    increase, the monthly survivors annuity shall be increased by
                            -22-               LRB9006807EGfg
 1    3%  of  the  total  survivors  annuity  provided  under  this
 2    Article,   including  previous  increases  provided  by  this
 3    subsection.  Such increases  shall  apply  to  the  survivors
 4    insurance  beneficiaries  of  each participant and annuitant,
 5    whether or not the employment status of  the  participant  or
 6    annuitant  terminates  before  the  effective  date  of  this
 7    amendatory Act of 1990.
 8        (k)  If  the  Internal  Revenue Code of 1986, as amended,
 9    requires that the survivors benefits be  payable  at  an  age
10    earlier  than  that  specified  in  this Section the benefits
11    shall  begin  at  the  earlier  age,  in  which  event,   the
12    survivor's  beneficiary shall be entitled only to that amount
13    which is equal to the actuarial equivalent  of  the  benefits
14    provided by this Section.
15        (l)  The  changes made to this Section and Section 15-131
16    by this amendatory Act of  1997,  relating  to  benefits  for
17    certain  unmarried  children who are full-time students under
18    age 22, apply without regard to whether the  deceased  member
19    was  in  service  on  or  after  the  effective  date of this
20    amendatory Act of 1997.  These changes do not  authorize  the
21    repayment  of  a refund or a re-election of benefits, and any
22    benefit or increase in benefits resulting from these  changes
23    is  not  payable  retroactively  for  any  period  before the
24    effective date of this amendatory Act of 1997.
25    (Source: P.A. 90-448, eff. 8-16-97.)
26        (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
27        Sec. 16-133.1.  Automatic annual increase in annuity.
28        (a)  Each member with creditable service and retiring  on
29    or  after August 26, 1969 is entitled to the automatic annual
30    increases  in  annuity  provided  under  this  Section  while
31    receiving  a  retirement  annuity  or  disability  retirement
32    annuity from the system.
33        An annuitant  shall  first  be  entitled  to  an  initial
                            -23-               LRB9006807EGfg
 1    increase  under  this Section on the January 1 next following
 2    the first anniversary of retirement, or January 1 of the year
 3    next following attainment of age 61, whichever is later.   At
 4    such   time,   the  system  shall  pay  an  initial  increase
 5    determined  as  follows:   1.5%  of  the  originally  granted
 6    retirement   annuity   or   disability   retirement   annuity
 7    multiplied by the number of years elapsed from the  later  of
 8    (1)  attainment  of  age  55,  or (2) the date of retirement,
 9    until January 1, 1972, plus  2%  of  the  originally  granted
10    annuity  multiplied  by  the  number of years elapsed between
11    January  1,  1972  and  January  1,  1978,  plus  3%  of  the
12    originally granted annuity multiplied by the number of  years
13    elapsed between January 1, 1978 and the effective date of the
14    initial  increase.   However,  the  initial  annual  increase
15    calculated   under  this  Section  for  the  recipient  of  a
16    disability retirement annuity granted under Section  16-149.2
17    shall  be  reduced  by  an  amount  equal to the total of all
18    increases in that annuity  received  under  Section  16-149.5
19    (but not exceeding 100% of the amount of the initial increase
20    otherwise provided under this Section).
21        Following   the   initial   increase,   automatic  annual
22    increases in annuity shall  be  payable  on  each  January  1
23    thereafter  during  the lifetime of the annuitant, determined
24    as a percentage of the originally granted retirement  annuity
25    or  disability retirement annuity for increases granted prior
26    to January 1, 1990, and calculated as  a  percentage  of  the
27    total  amount  of annuity, including previous increases under
28    this Section, for increases granted on or  after  January  1,
29    1990, as follows:  1.5% for periods prior to January 1, 1972,
30    2%  for  periods after December 31, 1971 and prior to January
31    1, 1978, and 3% for periods after December 31, 1977.
32        (b)  The automatic annual increases in  annuity  provided
33    under  this  Section  shall not be applicable unless a member
34    has made contributions toward such  increases  for  a  period
                            -24-               LRB9006807EGfg
 1    equivalent  to  one  full  year  of creditable service.  If a
 2    member contributes for service  performed  after  August  26,
 3    1969   but  the  member  becomes  an  annuitant  before  such
 4    contributions amount to one full year's  contributions  based
 5    on  the  salary  at the date of retirement, he or she may pay
 6    the necessary balance of the contributions to the system  and
 7    be  eligible  for  the  automatic annual increases in annuity
 8    provided under this Section.
 9        (c)  Each member shall make contributions toward the cost
10    of the automatic annual  increases  in  annuity  as  provided
11    under Section 16-152.
12        (d)  An  annuitant  receiving  a  retirement  annuity  or
13    disability   retirement   annuity   on   July  1,  1969,  who
14    subsequently re-enters service as a teacher is  eligible  for
15    the automatic annual increases in annuity provided under this
16    Section  if he or she renders at least one year of creditable
17    service following the latest re-entry.
18        (e)  In addition to the  automatic  annual  increases  in
19    annuity  provided  under this Section, an annuitant who meets
20    the service requirements of this Section and whose retirement
21    annuity or disability retirement annuity began on  or  before
22    January  1,  1971  shall  receive,  on  January  1,  1981, an
23    increase in the annuity then being paid  of  one  dollar  per
24    month  for  each  year  of creditable service.  On January 1,
25    1982, an annuitant whose  retirement  annuity  or  disability
26    retirement  annuity  began on or before January 1, 1977 shall
27    receive an increase in the annuity then  being  paid  of  one
28    dollar per month for each year of creditable service.
29        On  January  1,  1987,  any  annuitant  whose  retirement
30    annuity  began on or before January 1, 1977, shall receive an
31    increase in the monthly retirement annuity equal  to  8¢  per
32    year  of  creditable  service  times the number of years that
33    have elapsed since the annuity began.
34        (f)  On  January  1,  1998,  every  annuitant  who  began
                            -25-               LRB9006807EGfg
 1    receiving a retirement annuity on or before January  1,  1991
 2    shall  have  the  monthly  retirement annuity increased by an
 3    amount equal to 25¢ multiplied by the number of full years of
 4    creditable service multiplied by the  number  of  full  years
 5    that  have  elapsed since the annuity began.  Every annuitant
 6    who begins receiving a retirement annuity  after  January  1,
 7    1991  and  before  January  1,  1998  shall  have the monthly
 8    retirement annuity increased on the January 1 occurring on or
 9    next following the seventh anniversary of retirement,  by  an
10    amount  equal to $1.75 multiplied by the number of full years
11    of creditable service upon which the  retirement  annuity  is
12    based.   The increase under this subsection shall be included
13    in the calculation of  increases  granted  simultaneously  or
14    thereafter under subsection (a).
15    (Source: P.A. 86-273; 86-1488.)
16        (40 ILCS 5/16-143.1) (from Ch. 108 1/2, par. 16-143.1)
17        Sec. 16-143.1.  Increase in survivor benefits.
18        (a)  Beginning  January  1, 1990, each survivor's benefit
19    and each reversionary annuity payable  under  Section  16-136
20    shall  be  increased  by  3%  of the currently payable amount
21    thereof (1) on each January  1  occurring  on  or  after  the
22    commencement  of  the  annuity  if  the deceased teacher died
23    while  receiving  a  retirement  or   disability   retirement
24    annuity,  or  (2) in other cases, on each January 1 occurring
25    on or after the first anniversary  of  the  granting  of  the
26    benefit,  without  regard to whether the deceased teacher was
27    in service on or after the effective date of this  amendatory
28    Act  of  1991,  but  such  increases shall not accrue for any
29    period prior to January 1, 1990.
30        (b)  On  January  1,  1981,  any  beneficiary   who   was
31    receiving  a  survivor's monthly benefit on or before January
32    1, 1971, shall have the benefit then being paid increased  by
33    1%  for  each  full year elapsed from the date the survivor's
                            -26-               LRB9006807EGfg
 1    benefit began.  On January 1, 1982, any beneficiary who began
 2    receiving a survivor's monthly benefit after January 1, 1971,
 3    but before January 1, 1981 shall have the benefit then  being
 4    paid  increased by 1% for each year elapsed from the date the
 5    survivor's benefit began.
 6        On  January  1,  1987,  any  beneficiary  whose   monthly
 7    survivor's  benefit began on or before January 1, 1977, shall
 8    have the monthly survivor's benefit increased by $1 for  each
 9    full  year  which  has  elapsed since the date the survivor's
10    benefit began.
11        (c)  On  January  1,  1998,  every  survivor  who   began
12    receiving  a  survivor's benefit on or before January 1, 1991
13    shall have the monthly survivor's  benefit  increased  by  an
14    amount equal to 25¢ multiplied by the number of full years of
15    the  deceased's  creditable  service multiplied by the sum of
16    (i) the number of full years  that  have  elapsed  since  the
17    survivor's  benefit  began and (ii) the number of full years,
18    if any, during  which  the  deceased  received  a  retirement
19    annuity  under  this  Article.    Every  survivor  who begins
20    receiving a survivor's benefit  after  January  1,  1991  and
21    before  January  1,  1998  shall  have the monthly survivor's
22    benefit increased on the  January  1  occurring  on  or  next
23    following  the seventh anniversary of the commencement of the
24    survivor's benefit, by an amount equal to 25¢  multiplied  by
25    the number of full years of the deceased's creditable service
26    multiplied  by  the  sum of (i) the number of full years that
27    have elapsed since the survivor's benefit began and (ii)  the
28    number  of  full  years,  if  any,  during which the deceased
29    received a  retirement  annuity  under  this  Article.    The
30    increase  under  this  subsection  shall  be  included in the
31    calculation of increases granted simultaneously or thereafter
32    under subsection (a).
33    (Source: P.A. 86-273; 86-1488.)
                            -27-               LRB9006807EGfg
 1        (40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
 2        Sec. 17-119.  Automatic annual increase in pension.
 3        (a)  Each teacher retiring on or after September 1, 1959,
 4    is entitled  to  the  annual  increase  in  pension,  defined
 5    herein, while he is receiving a pension from the fund.
 6        1.  The term "base pension" means a service retirement or
 7    disability retirement pension in the amount fixed and payable
 8    at the date of retirement of a teacher.
 9        2.  The  annual  increase in pension shall be at the rate
10    of 1 1/2% of base pension.  This increase shall  first  occur
11    in  January  of the year next following the first anniversary
12    of retirement.  At such time the fund shall pay the pro  rata
13    part   of   the  increase  for  the  period  from  the  first
14    anniversary date  to  the  date  of  the  first  increase  in
15    pension.   Beginning  January  1,  1972,  the  rate of annual
16    increase  in  pension  shall  be  2%  of  the  base  pension.
17    Beginning January 1, 1979, the rate  of  annual  increase  in
18    pension  shall  be 3% of the base pension.  Beginning January
19    1, 1990, all automatic annual increases  payable  under  this
20    Section  shall  be  calculated  as  a percentage of the total
21    pension payable at the time of the  increase,  including  all
22    increases    previously    granted    under   this   Article,
23    notwithstanding Section 17-157.
24        3.  An increase in pension shall be granted only  if  the
25    retired teacher is age 60 or over. If the teacher attains age
26    60  after  retirement, the increase in pension shall begin in
27    January of the year following the 61st birthday. At such time
28    the fund also shall pay the pro rata  part  of  the  increase
29    from  the  61st  birthday  to  the  date of first increase in
30    pension.
31        (b)  In addition to other increases which may be provided
32    by this Section, on January  1,  1981  any  teacher  who  was
33    receiving  a  retirement pension on or before January 1, 1971
34    shall have his retirement pension then being  paid  increased
                            -28-               LRB9006807EGfg
 1    $1 per month for each year of creditable service.  On January
 2    1,  1982,  any  teacher  whose retirement pension began on or
 3    before January 1, 1977, shall  have  his  retirement  pension
 4    then  being  paid  increased  $1  per  month for each year of
 5    creditable service.
 6        On January 1, 1987, any teacher whose retirement  pension
 7    began  on  or  before January 1, 1977, shall have the monthly
 8    retirement pension increased by an amount  equal  to  8¢  per
 9    year  of  creditable  service  times the number of years that
10    have elapsed since the retirement pension began.
11        (c)  On  January  1,  1998,  every  pensioner  who  began
12    receiving a retirement pension on or before January  1,  1991
13    shall  have  the  monthly  retirement pension increased by an
14    amount equal to 25¢ multiplied by the number of full years of
15    creditable service multiplied by the  number  of  full  years
16    that  have  elapsed since the pension began.  Every pensioner
17    who begins receiving a retirement pension  after  January  1,
18    1991  and  before  January  1,  1998  shall  have the monthly
19    retirement pension increased on the January 1 occurring on or
20    next following the seventh anniversary of retirement,  by  an
21    amount  equal to $1.75 multiplied by the number of full years
22    of creditable service upon which the  retirement  pension  is
23    based.   The increase under this subsection shall be included
24    in the calculation of  increases  granted  simultaneously  or
25    thereafter  under  subsection  (a).   Section 17-157 does not
26    apply to the increase provided under this subsection.
27    (Source: P.A. 86-273.)
28        (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
29        Sec. 17-122. Survivor's and children's pensions - Amount.
30        (a)  Upon the death of a teacher  who  has  completed  at
31    least  1 1/2  years  of contributing service with either this
32    Fund or the  State  Universities  Retirement  System  or  the
33    Teachers'   Retirement  System  of  the  State  of  Illinois,
                            -29-               LRB9006807EGfg
 1    provided his death  occurred  while  (a)  in  active  service
 2    covered  by  the  fund  or  during  his  first  18  months of
 3    continuous employment without a break in  service  under  any
 4    other   participating  system  as  defined  in  the  Illinois
 5    Retirement  Systems   Reciprocal   Act   except   the   State
 6    Universities  Retirement  System and the Teachers' Retirement
 7    System of the State of Illinois, (b) on a creditable leave of
 8    absence, (c) on a noncreditable leave of absence of  no  more
 9    than  one  year,  or  (d)  a  pension was deferred or pending
10    provided the teacher had  at  least  10  years  of  validated
11    service  credit,  or  upon the death of a pensioner otherwise
12    qualified  for  such  benefit,  the  surviving   spouse   and
13    unmarried minor children of the deceased teacher under age 18
14    shall  be  entitled  to pensions, under the conditions stated
15    hereinafter.  Such survivor's and children's  pensions  shall
16    be based on the average of the 4 highest consecutive years of
17    salary  in  the  last  10  years of service or on the average
18    salary for total service, if total service has been less than
19    4 years, according to the following percentages:
20             30% of average  salary  or  50%  of  the  retirement
21        pension  earned  by  the  teacher,  whichever  is larger,
22        subject to the prescribed maximum monthly payment, for  a
23        surviving spouse alone on attainment of age 50;
24             60%  of  average  salary  for a surviving spouse and
25        eligible minor children of the deceased teacher.
26        If no eligible spouse survives, or the  surviving  spouse
27    remarries,  or  the  parent  of  the children of the deceased
28    member is otherwise ineligible for a  survivor's  pension,  a
29    children's  pension  for eligible minor children under age 18
30    shall be paid to their parent or  legal  guardian  for  their
31    benefit according to the following percentages:
32        30% of average salary for one child;
33        60% of average salary for 2 or more children.
34        (b)  On  January  1,  1981, any survivor or child who was
                            -30-               LRB9006807EGfg
 1    receiving a survivor's or children's  pension  on  or  before
 2    January  1,  1971,  shall  have  his survivor's or children's
 3    pension then being paid increased by 1% for  each  full  year
 4    which has elapsed from the date the pension began. On January
 5    1,  1982,  any  survivor  or  child whose pension began after
 6    January 1, 1971, but before January 1, 1981, shall  have  his
 7    survivor's or children's pension then being paid increased 1%
 8    for  each  full  year  which  has  elapsed  from the date the
 9    pension began. On January 1,  1987,  any  survivor  or  child
10    whose  pension began on or before January 1, 1977, shall have
11    the monthly survivor's or children's pension increased by  $1
12    for each full year which has elapsed since the pension began.
13        (c)  On  January  1,  1998,  every  survivor or child who
14    began receiving a survivor's  or  children's  pension  on  or
15    before  January  1,  1991  shall  have  the  monthly  pension
16    increased  by an amount equal to 25¢ multiplied by the number
17    of full years of the deceased's creditable service multiplied
18    by the sum of (i) the number of full years that have  elapsed
19    since the survivor's or children's pension began and (ii) the
20    number  of  full  years,  if  any,  during which the deceased
21    received a retirement pension  under  this  Article.    Every
22    survivor  or  child  who  begins  receiving  a  survivor's or
23    children's pension after January 1, 1991 and  before  January
24    1,  1998  shall  have  the  monthly  pension increased on the
25    January  1  occurring  on  or  next  following  the   seventh
26    anniversary  of the commencement of the pension, by an amount
27    equal to 25¢ multiplied by the number of full  years  of  the
28    deceased's  creditable  service  multiplied by the sum of (i)
29    the  number  of  full  years  that  have  elapsed  since  the
30    survivor's annuity began and (ii) the number of  full  years,
31    if  any,  during  which  the  deceased  received a retirement
32    pension  under  this  Article.   The  increase   under   this
33    subsection  shall be included in the calculation of increases
34    granted simultaneously or thereafter  under  subsection  (d).
                            -31-               LRB9006807EGfg
 1    Section  17-157 does not apply to the increase provided under
 2    this subsection.
 3        (d)  Beginning January  1,  1990,  every  survivor's  and
 4    children's  pension  shall be increased (1) on each January 1
 5    occurring on or after the commencement of the pension if  the
 6    deceased  teacher  died while receiving a retirement pension,
 7    or (2) in other cases, on each  January  1  occurring  on  or
 8    after  the  first  anniversary  of  the  commencement  of the
 9    pension, by an amount equal to 3% of the  current  amount  of
10    the pension, including all increases previously granted under
11    this Article, notwithstanding Section 17-157.  Such increases
12    shall  apply  without  regard to whether the deceased teacher
13    was in service  on  or  after  the  effective  date  of  this
14    amendatory  Act  of 1991, but shall not accrue for any period
15    prior to January 1, 1990.
16        (e)  Subject  to  the  minimum  established  below,   the
17    maximum amount of pension for a surviving spouse alone or one
18    minor child shall be $400 per month, and the maximum combined
19    pensions  for a surviving spouse and children of the deceased
20    teacher shall be $600 per  month,  with  individual  pensions
21    adjusted  for all beneficiaries pro rata to conform with this
22    limitation.   If  proration  is   unnecessary   the   minimum
23    survivor's  and  children's  pensions shall be $40 per month.
24    The minimum total survivor's and children's  pension  payable
25    upon  the  death  of  a contributor or annuitant which occurs
26    after  December  31,  1986,  shall  be  50%  of  the   earned
27    retirement   pension   of   such  contributor  or  annuitant,
28    calculated without early retirement discount in the  case  of
29    death in service.
30        On  death  after  retirement,  the  total  survivor's and
31    children's pensions shall not exceed the  monthly  retirement
32    or   disability   pension  paid  to  the  deceased  retirant.
33    Survivor's and children's benefits described in this  Section
34    shall apply to all service and disability pensioners eligible
                            -32-               LRB9006807EGfg
 1    for a pension as of July 1, 1981.
 2    (Source: P.A. 90-32, eff. 6-27-97.)
 3        Section  90.  The State Mandates Act is amended by adding
 4    Section 8.21 as follows:
 5        (30 ILCS 805/8.21 new)
 6        Sec. 8.21. Exempt mandate.   Notwithstanding  Sections  6
 7    and  8 of this Act, no reimbursement by the State is required
 8    for  the  implementation  of  any  mandate  created  by  this
 9    amendatory Act of 1997.
10        Section 99. Effective date.  This Act takes  effect  upon
11    becoming law.

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