State of Illinois
90th General Assembly
Legislation

   [ Search ]   [ Legislation ]   [ Bill Summary ]
[ Home ]   [ Back ]   [ Bottom ]



90_HB2594

      40 ILCS 5/5-132           from Ch. 108 1/2, par. 5-132
      40 ILCS 5/5-148           from Ch. 108 1/2, par. 5-148
      30 ILCS 805/8.22 new
          Amends the Chicago Police Article of the Pension Code  to
      provide  an  increase  in  the  retirement  benefit  formula.
      Changes  the  maximum  annuity  from  75%  to  80% of average
      salary.  Provides for 2.5% (rather than 2%) of average salary
      for each year of  service  beyond  20.   Applies  to  persons
      withdrawing from service after December 31, 1998.  Amends the
      State   Mandates   Act   to  require  implementation  without
      reimbursement.  Effective immediately.
                                                     LRB9009029EGfg
                                               LRB9009029EGfg
 1        AN ACT to amend the Illinois  Pension  Code  by  changing
 2    Sections 5-132 and 5-148 and to amend the State Mandates Act.
 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 5-132 and 5-148 as follows:
 7        (40 ILCS 5/5-132) (from Ch. 108 1/2, par. 5-132)
 8        Sec. 5-132. Minimum annuity.
 9        (A)  Any  policeman  who  withdraws  on  or after July 8,
10    1957, or any policeman transferred to the police  service  of
11    the  city  under  the  Exchange  of Functions Act of 1957 who
12    withdraws on or after July  17,  1959,  after  completing  at
13    least  20  years  of  service, for whom the annuity otherwise
14    provided in this Article is less than  that  stated  in  this
15    Section, has a right to receive annuity as follows:
16             (a)  If  he  is  age  55  or more on withdrawal, his
17        annuity after such withdrawal, shall be equal  to  2%  of
18        the  average  salary  for  4 consecutive years of highest
19        salaries within the  last  10  years  of  service  before
20        withdrawal,  for  each year of service, together with 1/6
21        of 1% of such average salary for each complete  month  of
22        service of each fractional year, but not in excess of 75%
23        of the average annual salary.
24             (b)  If he is age 50 or more but less than age 55 on
25        withdrawal,  his  annuity  shall  be  equal  to 2% of the
26        average salary for the 4 highest consecutive years of the
27        last 10 years  of  service  for  each  year  of  service,
28        together  with 1/16 of 1% of such average salary for each
29        month of each fractional year of service, reduced by  1/2
30        of 1% for each month that he is less than age 55.
31             (c)  If  he  is  less  than age 50 on withdrawal, he
                            -2-                LRB9009029EGfg
 1        may, upon attainment of age 50 or over,  become  entitled
 2        to  the annuity provided in this Section or, he may, upon
 3        application before  age  50,  receive  a  refund  of  the
 4        deductions from salary, plus interest at 1 1/2% per annum
 5        if he is entitled to refund under Section 5-163.
 6             (d)  In   lieu   of  the  annuity  provided  in  the
 7        foregoing provisions of this Section 5-132 any  policeman
 8        who  withdraws  from the service after December 31, 1973,
 9        after having attained age 53 in the service  with  23  or
10        more  years  of  service  credit  shall be entitled to an
11        annuity computed as follows if such  annuity  is  greater
12        than  that  provided  in the foregoing paragraphs of this
13        Section 5-132: An annuity equal to  50%  of  the  average
14        salary for the 4 highest consecutive years of the last 10
15        years  of  service plus additional annuity equal to 2% of
16        such average salary for each completed year of service or
17        fraction thereof rendered after his attainment of age  53
18        and the completion of 23 years of service.
19             Any  policeman who has completed 23 years of service
20        prior to his attainment of age  53  in  the  service  and
21        continues  in  the service until his attainment of age 53
22        shall have added to his annuity, computed as provided  in
23        the   immediately   preceding  paragraph,  an  additional
24        annuity equal to 1%  of  such  average  salary  for  each
25        completed  year  of service or fraction thereof in excess
26        of 23 years up to age 53.
27             (e)  In  lieu  of  the  annuity  provided   in   the
28        foregoing  provisions  of this Section, any policeman who
29        withdraws from the service either (i) after December  31,
30        1983  with at least 22 years of service credit and having
31        attained age 52 in the service, or  (ii)  after  December
32        31,  1984  with  at  least 21 years of service credit and
33        having attained age 51 in the  service,  or  (iii)  after
34        December  31,  1985  with  at  least  20 years of service
                            -3-                LRB9009029EGfg
 1        credit and having attained age 50 in the service, or (iv)
 2        after December 31,  1990,  with  at  least  20  years  of
 3        service credit regardless of age, shall be entitled to an
 4        annuity  to begin not earlier than upon attainment of age
 5        50 if under such age at withdrawal, computed as  follows:
 6        an  annuity  equal to 50% of the average salary for the 4
 7        highest  consecutive  years  of  the  last  10  years  of
 8        service, plus additional annuity  equal  to  2%  of  such
 9        average  salary  for  each  completed  year of service or
10        fraction thereof rendered after  his  completion  of  the
11        minimum number of years of service required for him to be
12        eligible  under this subsection (e). However, the annuity
13        provided under this subsection (e) may not exceed 75%  of
14        such average salary.
15             (f)  In   lieu   of  the  annuity  provided  in  the
16        foregoing provisions of this  Section,  a  policeman  who
17        withdraws  from  the service after December 31, 1998 with
18        at least 20 years of service credit may elect to  receive
19        an  annuity, to begin not earlier than upon attainment of
20        age 50 if under that age at withdrawal, equal to  50%  of
21        average  salary  plus  2.5%  of  average  salary for each
22        completed year of service or fraction thereof  in  excess
23        of  20,  but  not  to  exceed a maximum of 80% of average
24        salary.
25        (B)  A policeman withdrawing  after  September  1,  1969,
26    may,  in  addition,  be  entitled to the benefits provided by
27    Section 5-167.1 of this Article if he so qualifies under that
28    Section.
29        (C)  If, on withdrawal, total service  is  less  than  20
30    years,  the  policeman  shall  not  be entitled to an annuity
31    under this Section but may receive an annuity under the other
32    provisions of this Article  or,  if  entitled  thereto  under
33    Section  5-163,  a  refund  of  the  deductions  from salary,
34    including, in the case of policemen transferred to the police
                            -4-                LRB9009029EGfg
 1    service of the city under the Exchange of  Functions  Act  of
 2    1957,  the  additional  contribution  paid on salary received
 3    from August 1, 1957, to July 17, 1959,  as  provided  in  the
 4    Park  Policemen's  Annuity  Act,  together with interest at 1
 5    1/2% per annum.
 6        Moneys  voluntarily  contributed  under  the  Policemen's
 7    Annuity and Benefit Fund Act of the Illinois Municipal  Code,
 8    or the Park Policemen's Annuity Act, shall be refunded to the
 9    contributing  policemen  who  were  in  service on January 1,
10    1954, or in the case of policemen transferred to  the  police
11    service  of  the  city under the Exchange of Functions Act of
12    1957, who were in service on July 17, 1959.
13        The age and service annuity formula in this Section shall
14    not apply to any policeman who, having retired before July 8,
15    1957, or before July 17, 1959, in the  case  of  a  policeman
16    transferred under the provisions of the Exchange of Functions
17    Act  of  1957, re-enters the police service after such dates,
18    whichever are applicable.
19        (D)  For the purpose of this  Section,  "average  salary"
20    means  the  average  of  the  highest  4 consecutive years of
21    salary within the last 10 years of service.
22    (Source: P.A. 86-1488.)
23        (40 ILCS 5/5-148) (from Ch. 108 1/2, par. 5-148)
24        Sec. 5-148.  Maximum annuities.  No annuity in excess  of
25    75%  of the highest salary considered for annuity purposes in
26    accordance with this Article (80% in the case of a  policeman
27    whose  annuity  is  calculated  under  subdivision  (A)(f) of
28    Section 5-132) shall be payable to a  policeman,  or  to  the
29    widow of a policeman whose death results from injury incurred
30    in  the  performance of an act of duty.  No amount of annuity
31    in excess of $500 per month shall be payable to the widow  of
32    a  policeman  whose  death  results from any cause other than
33    injury incurred in the performance of an act of duty,  except
                            -5-                LRB9009029EGfg
 1    as provided in Section 5-136.1.
 2        If,  when a policeman's annuity is fixed, there is to his
 3    credit, for  such  annuity,  an  amount  in  excess  of  that
 4    necessary  to provide an annuity of 75% of his highest salary
 5    (80% in the case of a policeman whose annuity  is  calculated
 6    under  subdivision  (A)(f)  of  Section  5-132), 7/24 of such
 7    excess shall  be  refunded  if  the  policeman  is  a  future
 8    entrant;  and  if  he  is  a present employee, there shall be
 9    refunded, a part of such excess amount proportionately  equal
10    to  that  part  of  the  entire amount to his credit for such
11    annuity purposes, which the sum that has resulted from salary
12    deductions bears to such entire amount.
13        Until January 1, 1986, if,  when  a  widow's  annuity  is
14    fixed,  there  is  to  the  policeman's  credit,  for widow's
15    annuity, an amount in excess of that necessary to provide  an
16    annuity  of  $500  per  month,  1/3  of  such excess shall be
17    refunded to the policeman if he is a future entrant; and,  if
18    he  is  a present employee, there shall be refunded a part of
19    such excess amount proportionately equal to that part of  the
20    entire  amount  to his credit for such annuity purposes which
21    the sum that has resulted from employee  contributions  bears
22    to such entire amount.  If the widow's annuity is fixed on or
23    after  January  1,  1986,  no  refund of excess contributions
24    shall be made under this paragraph.
25        Until January 1, 1986, if at the time of the death  of  a
26    policeman  resulting  from injury incurred in the performance
27    of an act of duty,  there  is  to  his  credit,  for  widow's
28    annuity,  an amount in excess of that necessary to provide an
29    annuity of 75% of his highest salary, or $500  per  month  if
30    death  results from any other cause, 1/3 of such excess shall
31    be refunded to his widow if he was a future entrant; and,  if
32    he  was  a  present  employee, there shall be refunded to his
33    widow a part of such excess amount proportionately  equal  to
34    that part of the entire amount to his credit for such annuity
                            -6-                LRB9009029EGfg
 1    purposes  which  the  sum  that  has resulted from employee's
 2    contributions bears to such entire amount.  If employee  dies
 3    in  service  on or after January 1, 1986, no refund of excess
 4    contributions shall be made under this paragraph.
 5        This amendatory Act of 1972 does not increase the  amount
 6    of  any  widow's  annuity which is fixed before the effective
 7    date of this amendatory Act of 1972.
 8    (Source: P.A. 84-1104.)
 9        Section 90. The State Mandates Act is amended  by  adding
10    Section 8.22 as follows:
11        (30 ILCS 805/8.22 new)
12        Sec.  8.22.  Exempt  mandate.  Notwithstanding Sections 6
13    and 8 of this Act, no reimbursement by the State is  required
14    for  the  implementation  of  any  mandate  created  by  this
15    amendatory Act of 1998.
16        Section  99.  Effective date.  This Act takes effect upon
17    becoming law.

[ Top ]