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90_SB0257
40 ILCS 5/14-103.12 from Ch. 108 1/2, par. 14-103.12
40 ILCS 5/14-108 from Ch. 108 1/2, par. 14-108
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 5/14-133 from Ch. 108 1/2, par. 14-133
40 ILCS 5/15-136 from Ch. 108 1/2, par. 15-136
40 ILCS 5/15-145 from Ch. 108 1/2, par. 15-145
40 ILCS 5/15-157 from Ch. 108 1/2, par. 15-157
40 ILCS 5/16-133 from Ch. 108 1/2, par. 16-133
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 5/16-152 from Ch. 108 1/2, par. 16-152
Amends the State Employee, State Universities, and
Downstate Teacher Articles of the Pension Code to provide for
a flat rate retirement formula of 1.67% of final average
salary per year of service for employees covered by Social
Security and 2.2% of final average salary per year of service
for employees not covered by Social Security; increases
contributions by 0.5% of salary for persons affected by the
new formula. Provides one-time increases for certain persons
already receiving a retirement or survivor's annuity. Amends
the State Employee Article to provide that all persons who
receive an annuity based on the alternative (State police)
formula may have their retirement annuities based on their
salary on the last day of eligible service rather than a
four-year average salary (currently only State police
officers can do this). Effective immediately.
LRB9002191EGfg
LRB9002191EGfg
1 AN ACT to amend the Illinois Pension Code.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by
5 changing Sections 14-103.12, 14-108, 14-114, 14-119, 14-121,
6 14-133, 15-136, 15-145, 15-157, 16-133, 16-133.1, 16-143.1,
7 and 16-152 as follows:
8 (40 ILCS 5/14-103.12) (from Ch. 108 1/2, par. 14-103.12)
9 Sec. 14-103.12. Final average compensation.
10 (a) For retirement and survivor annuities, "final
11 average compensation" means the monthly compensation obtained
12 by dividing the total compensation of an employee during the
13 period of: (1) the 48 consecutive months of service within
14 the last 120 months of service in which the total
15 compensation was the highest, or (2) the total period of
16 service, if less than 48 months, by the number of months of
17 service in such period; provided that for purposes of a
18 retirement annuity the average compensation for the last 12
19 months of the 48-month period shall not exceed the final
20 average compensation by more than 25%.
21 (b) For death and disability benefits, in the case of a
22 full-time employee, "final average compensation" means the
23 greater of (1) the rate of compensation of the employee at
24 the date of death or disability multiplied by 1 in the case
25 of a salaried employee, by 174 in the case of an hourly
26 employee, and by 22 in the case of a per diem employee, or
27 (2) for benefits commencing on or after January 1, 1991,
28 final average compensation as determined under subsection
29 (a).
30 For purposes of this paragraph, full or part-time status
31 shall be certified by the employing agency. Final rate of
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1 compensation for a part-time employee shall be the total
2 compensation earned during the last full calendar month prior
3 to the date of death or disability.
4 (c) Notwithstanding the provisions of subsection (a),
5 for the purpose of calculating retirement and survivor
6 annuities of persons with at least 20 years of eligible
7 creditable service as a State policeman, "final average
8 compensation" means the monthly rate of compensation received
9 by the person on the last day of eligible creditable service
10 as a State policeman, or the average monthly compensation
11 received by the person for the last 48 months of service
12 prior to retirement, whichever is greater.
13 (d) Notwithstanding the provisions of subsection (a),
14 for a person who was receiving, on the date of retirement or
15 death, a disability benefit calculated under subdivision
16 (b)(2) of this Section, the final average compensation used
17 to calculate the disability benefit may be used for purposes
18 of calculating the retirement and survivor annuities.
19 (e) In computing the final average compensation, periods
20 of military leave shall not be considered.
21 (Source: P.A. 86-273; 86-1488.)
22 (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
23 (Text of Section before amendment by P.A. 89-507)
24 Sec. 14-108. Amount of retirement annuity. A member who
25 has contributed to the System for at least 12 months, shall
26 be entitled to a prior service annuity for each year of
27 certified prior service credited to him, except that a member
28 shall receive 1/3 of the prior service annuity for each year
29 of service for which contributions have been made and all of
30 such annuity shall be payable after the member has made
31 contributions for a period of 3 years. Proportionate amounts
32 shall be payable for service of less than a full year after
33 completion of at least 12 months.
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1 The total period of service to be considered in
2 establishing the measure of prior service annuity shall
3 include service credited in the Teachers' Retirement System
4 of the State of Illinois and the State Universities
5 Retirement System for which contributions have been made by
6 the member to such systems; provided that at least 1 year of
7 the total period of 3 years prescribed for the allowance of a
8 full measure of prior service annuity shall consist of
9 membership service in this system for which credit has been
10 granted.
11 (a) In the case of a member who retires on or after the
12 effective date of this amendatory Act of 1997 and is a
13 noncovered employee, the retirement annuity for membership
14 service and prior service shall be 2.2% 1.67% of final
15 average compensation for each of the first 10 years of
16 service; 1.90% for each of the next 10 years of service;
17 2.10% for each year of service in excess of 20 but not
18 exceeding 30; and 2.30% for each year in excess of 30. Any
19 service credit established as a covered employee shall be
20 considered in determining the applicable percentages and
21 computed as stated in paragraph (b).
22 (b) In the case of a member who retires on or after the
23 effective date of this amendatory Act of 1997 and is a
24 covered employee, the retirement annuity for membership
25 service and prior service shall be computed as stated in
26 paragraph (a) for all service credit established as a
27 noncovered employee; for service credit established as a
28 covered employee it shall be 1.67% of final average
29 compensation 1% for each of the first 10 years of service;
30 1.10% for each of the next 10 years of service; 1.30% for
31 each year of service in excess of 20 but not exceeding 30;
32 and 1.50% for each year of service in excess of 30. Any
33 service credit established as a noncovered employee shall be
34 considered in determining the applicable percentages.
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1 (c) For a member with 30 but less than 35 years of
2 creditable service retiring after attaining age 55 but before
3 age 60, the retirement annuity shall be reduced by 1/2 of 1%
4 for each month that the member's age is under age 60 at the
5 time of retirement.
6 (d) A retirement annuity shall not exceed 75% of final
7 average compensation, subject to such extension as may result
8 from the application of Section 14-114 or Section 14-115.
9 (e) The retirement annuity payable to any covered
10 employee who is a member of the System and in service on
11 January 1, 1969, or in service thereafter in 1969 as a result
12 of legislation enacted by the Illinois General Assembly
13 transferring the member to State employment from county
14 employment in a county Department of Public Aid in counties
15 of 3,000,000 or more population, under a plan of coordination
16 with the Old Age, Survivors and Disability provisions
17 thereof, if not fully insured for Old Age Insurance payments
18 under the Federal Old Age, Survivors and Disability Insurance
19 provisions at the date of acceptance of a retirement annuity,
20 shall not be less than the amount for which the member would
21 have been eligible if coordination were not applicable.
22 (f) The retirement annuity payable to any covered
23 employee who is a member of the System and in service on
24 January 1, 1969, or in service thereafter in 1969 as a result
25 of the legislation designated in the immediately preceding
26 paragraph, if fully insured for Old Age Insurance payments
27 under the Federal Social Security Act at the date of
28 acceptance of a retirement annuity, shall not be less than an
29 amount which when added to the Primary Insurance Benefit
30 payable to the member upon attainment of age 65 under such
31 Federal Act, will equal the annuity which would otherwise be
32 payable if the coordinated plan of coverage were not
33 applicable.
34 (g) In the case of a member who is a noncovered
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1 employee, the retirement annuity for membership service as a
2 full-time security employee of the Department of Corrections
3 or security employee of the Department of Mental Health and
4 Developmental Disabilities shall be 1.9% of final average
5 compensation for each of the first 10 years of service; 2.1%
6 for each of the next 10 years of service; 2.25% for each year
7 of service in excess of 20 but not exceeding 30; and 2.5% for
8 each year in excess of 30; or as provided in subsection (a)
9 if the resulting benefit is greater.
10 (h) In the case of a member who is a covered employee,
11 the retirement annuity for membership service as a full-time
12 security employee of the Department of Corrections or
13 security employee of the Department of Mental Health and
14 Developmental Disabilities shall be 1.67% of final average
15 compensation for each of the first 10 years of service; 1.90%
16 for each of the next 10 years of service; 2.10% for each year
17 of service in excess of 20 but not exceeding 30; and 2.30%
18 for each year in excess of 30.
19 (i) For the purposes of this Section and Section 14-133
20 of this Act, the term "security employee of the Department of
21 Corrections" and the term "security employee of the
22 Department of Mental Health and Developmental Disabilities"
23 shall have the meanings ascribed to them in subsection (c) of
24 Section 14-110.
25 (j) The retirement annuity computed pursuant to
26 paragraphs (g) or (h) shall be applicable only to those
27 security employees of the Department of Corrections and
28 security employees of the Department of Mental Health and
29 Developmental Disabilities who have at least 20 years of
30 membership service and who are not eligible for the
31 alternative retirement annuity provided under Section 14-110.
32 However, persons transferring to this System under Section
33 14-108.2 who have service credit under Article 16 of this
34 Code may count such service toward establishing their
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1 eligibility under the 20-year service requirement of this
2 subsection; but such service may be used only for
3 establishing such eligibility, and not for the purpose of
4 increasing or calculating any benefit.
5 (k) In the case of a member who has at least 10 years of
6 creditable service as a court reporter, the retirement
7 annuity for service as a court reporter shall be 2.2% of
8 final average compensation for each year of such service as a
9 noncovered employee, and 1.5% of final average compensation
10 for each year of such service as a covered employee.
11 (Source: P.A. 86-272; 86-273; 86-1028.)
12 (Text of Section after amendment by P.A. 89-507)
13 Sec. 14-108. Amount of retirement annuity. A member who
14 has contributed to the System for at least 12 months, shall
15 be entitled to a prior service annuity for each year of
16 certified prior service credited to him, except that a member
17 shall receive 1/3 of the prior service annuity for each year
18 of service for which contributions have been made and all of
19 such annuity shall be payable after the member has made
20 contributions for a period of 3 years. Proportionate amounts
21 shall be payable for service of less than a full year after
22 completion of at least 12 months.
23 The total period of service to be considered in
24 establishing the measure of prior service annuity shall
25 include service credited in the Teachers' Retirement System
26 of the State of Illinois and the State Universities
27 Retirement System for which contributions have been made by
28 the member to such systems; provided that at least 1 year of
29 the total period of 3 years prescribed for the allowance of a
30 full measure of prior service annuity shall consist of
31 membership service in this system for which credit has been
32 granted.
33 (a) In the case of a member who retires on or after the
34 effective date of this amendatory Act of 1997 and is a
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1 noncovered employee, the retirement annuity for membership
2 service and prior service shall be 2.2% 1.67% of final
3 average compensation for each of the first 10 years of
4 service; 1.90% for each of the next 10 years of service;
5 2.10% for each year of service in excess of 20 but not
6 exceeding 30; and 2.30% for each year in excess of 30. Any
7 service credit established as a covered employee shall be
8 considered in determining the applicable percentages and
9 computed as stated in paragraph (b).
10 (b) In the case of a member who retires on or after the
11 effective date of this amendatory Act of 1997 and is a
12 covered employee, the retirement annuity for membership
13 service and prior service shall be computed as stated in
14 paragraph (a) for all service credit established as a
15 noncovered employee; for service credit established as a
16 covered employee it shall be 1.67% of final average
17 compensation 1% for each of the first 10 years of service;
18 1.10% for each of the next 10 years of service; 1.30% for
19 each year of service in excess of 20 but not exceeding 30;
20 and 1.50% for each year of service in excess of 30. Any
21 service credit established as a noncovered employee shall be
22 considered in determining the applicable percentages.
23 (c) For a member with 30 but less than 35 years of
24 creditable service retiring after attaining age 55 but before
25 age 60, the retirement annuity shall be reduced by 1/2 of 1%
26 for each month that the member's age is under age 60 at the
27 time of retirement.
28 (d) A retirement annuity shall not exceed 75% of final
29 average compensation, subject to such extension as may result
30 from the application of Section 14-114 or Section 14-115.
31 (e) The retirement annuity payable to any covered
32 employee who is a member of the System and in service on
33 January 1, 1969, or in service thereafter in 1969 as a result
34 of legislation enacted by the Illinois General Assembly
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1 transferring the member to State employment from county
2 employment in a county Department of Public Aid in counties
3 of 3,000,000 or more population, under a plan of coordination
4 with the Old Age, Survivors and Disability provisions
5 thereof, if not fully insured for Old Age Insurance payments
6 under the Federal Old Age, Survivors and Disability Insurance
7 provisions at the date of acceptance of a retirement annuity,
8 shall not be less than the amount for which the member would
9 have been eligible if coordination were not applicable.
10 (f) The retirement annuity payable to any covered
11 employee who is a member of the System and in service on
12 January 1, 1969, or in service thereafter in 1969 as a result
13 of the legislation designated in the immediately preceding
14 paragraph, if fully insured for Old Age Insurance payments
15 under the Federal Social Security Act at the date of
16 acceptance of a retirement annuity, shall not be less than an
17 amount which when added to the Primary Insurance Benefit
18 payable to the member upon attainment of age 65 under such
19 Federal Act, will equal the annuity which would otherwise be
20 payable if the coordinated plan of coverage were not
21 applicable.
22 (g) In the case of a member who is a noncovered
23 employee, the retirement annuity for membership service as a
24 full-time security employee of the Department of Corrections
25 or security employee of the Department of Human Services
26 shall be 1.9% of final average compensation for each of the
27 first 10 years of service; 2.1% for each of the next 10 years
28 of service; 2.25% for each year of service in excess of 20
29 but not exceeding 30; and 2.5% for each year in excess of 30;
30 or as provided in subsection (a) if the resulting benefit is
31 greater.
32 (h) In the case of a member who is a covered employee,
33 the retirement annuity for membership service as a full-time
34 security employee of the Department of Corrections or
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1 security employee of the Department of Human Services shall
2 be 1.67% of final average compensation for each of the first
3 10 years of service; 1.90% for each of the next 10 years of
4 service; 2.10% for each year of service in excess of 20 but
5 not exceeding 30; and 2.30% for each year in excess of 30.
6 (i) For the purposes of this Section and Section 14-133
7 of this Act, the term "security employee of the Department of
8 Corrections" and the term "security employee of the
9 Department of Human Services" shall have the meanings
10 ascribed to them in subsection (c) of Section 14-110.
11 (j) The retirement annuity computed pursuant to
12 paragraphs (g) or (h) shall be applicable only to those
13 security employees of the Department of Corrections and
14 security employees of the Department of Human Services who
15 have at least 20 years of membership service and who are not
16 eligible for the alternative retirement annuity provided
17 under Section 14-110. However, persons transferring to this
18 System under Section 14-108.2 who have service credit under
19 Article 16 of this Code may count such service toward
20 establishing their eligibility under the 20-year service
21 requirement of this subsection; but such service may be used
22 only for establishing such eligibility, and not for the
23 purpose of increasing or calculating any benefit.
24 (k) In the case of a member who has at least 10 years of
25 creditable service as a court reporter, the retirement
26 annuity for service as a court reporter shall be 2.2% of
27 final average compensation for each year of such service as a
28 noncovered employee, and 1.5% of final average compensation
29 for each year of such service as a covered employee.
30 (Source: P.A. 89-507, eff. 7-1-97.)
31 (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
32 Sec. 14-114. Automatic increase in retirement annuity.
33 (a) Any person receiving a retirement annuity under this
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1 Article who retires having attained age 60, or who retires
2 before age 60 having at least 35 years of creditable service,
3 shall on January 1, next following the first full year of
4 retirement, have the amount of the then fixed and payable
5 monthly retirement annuity increased 3%. Any person
6 receiving a retirement annuity under this Article who retires
7 before attainment of age 60 and with less than 35 years of
8 creditable service shall have the amount of the fixed and
9 payable retirement annuity increased by 3% on the January 1
10 occurring on or next following (1) attainment of age 60, or
11 (2) the first anniversary of retirement, whichever occurs
12 later. However, for persons who receive the alternative
13 retirement annuity under Section 14-110, references in this
14 subsection (a) to attainment of age 60 shall be deemed to
15 refer to attainment of age 55. For a person receiving early
16 retirement incentives under Section 14-108.3 whose retirement
17 annuity began after January 1, 1992 pursuant to an extension
18 granted under subsection (e) of that Section, the first
19 anniversary of retirement shall be deemed to be January 1,
20 1993.
21 On each January 1 following the date of the initial
22 increase under this subsection, the employee's monthly
23 retirement annuity shall be increased by an additional 3%.
24 Beginning January 1, 1990, all automatic annual increases
25 payable under this Section shall be calculated as a
26 percentage of the total annuity payable at the time of the
27 increase, including previous increases granted under this
28 Article.
29 (b) The provisions of subsection (a) of this Section
30 shall be applicable to an employee only if the employee makes
31 the additional contributions required after December 31, 1969
32 for the purpose of the automatic increases for not less than
33 the equivalent of one full year. If an employee becomes an
34 annuitant before his additional contributions equal one full
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1 year's contributions based on his salary at the date of
2 retirement, the employee may pay the necessary balance of the
3 contributions to the system, without interest, and be
4 eligible for the increasing annuity authorized by this
5 Section.
6 (c) The provisions of subsection (a) of this Section
7 shall not be applicable to any annuitant who is on retirement
8 on December 31, 1969, and thereafter returns to State
9 service, unless the member has established at least one year
10 of additional creditable service following reentry into
11 service.
12 (d) In addition to other increases which may be provided
13 by this Section, on January 1, 1981 any annuitant who was
14 receiving a retirement annuity on or before January 1, 1971
15 shall have his retirement annuity then being paid increased
16 $1 per month for each year of creditable service. On January
17 1, 1982, any annuitant who began receiving a retirement
18 annuity on or before January 1, 1977, shall have his
19 retirement annuity then being paid increased $1 per month for
20 each year of creditable service.
21 On January 1, 1987, any annuitant who began receiving a
22 retirement annuity on or before January 1, 1977, shall have
23 the monthly retirement annuity increased by an amount equal
24 to 8¢ per year of creditable service times the number of
25 years that have elapsed since the annuity began.
26 On January 1, 1998, every annuitant who began receiving a
27 retirement annuity on or before January 1, 1990 shall have
28 the monthly retirement annuity increased by an amount equal
29 to 10¢ multiplied by the number of full years of creditable
30 service multiplied by the number of full years that have
31 elapsed since the annuity began.
32 (e) Every person who receives the alternative retirement
33 annuity under Section 14-110 and who is eligible to receive
34 the 3% increase under subsection (a) on January 1, 1986,
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1 shall also receive on that date a one-time increase in
2 retirement annuity equal to the difference between (1) his
3 actual retirement annuity on that date, including any
4 increases received under subsection (a), and (2) the amount
5 of retirement annuity he would have received on that date if
6 the amendments to subsection (a) made by Public Act 84-162
7 had been in effect since the date of his retirement.
8 (Source: P.A. 86-273; 87-1265.)
9 (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
10 Sec. 14-119. Amount of widow's annuity.
11 (a) The widow's annuity shall be 50% of the amount of
12 retirement annuity payable to the member on the date of death
13 while on retirement if an annuitant, or on the date of his
14 death while in service if an employee, regardless of his age
15 on such date, or on the date of withdrawal if death occurred
16 after termination of service under the conditions prescribed
17 in the preceding Section.
18 (b) If an eligible widow, regardless of age, has in her
19 care any unmarried child or children of the member under age
20 18, the widow's annuity shall be increased in the amount of
21 5% of the retirement annuity for each such child, but the
22 combined payments for a widow and children shall not exceed
23 66 2/3% of the member's earned retirement annuity.
24 The amount of retirement annuity from which the widow's
25 annuity is derived shall be that earned by the member without
26 regard to whether he attained age 60 prior to his withdrawal
27 under the conditions stated or prior to his death.
28 (c) Adopted children shall be considered as children of
29 the member only if the proceedings for adoption were
30 commenced at least 1 year prior to the member's death.
31 Marriage of a child shall render the child ineligible for
32 further consideration in the increase in the amount of the
33 widow's annuity.
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1 Attainment of age 18 of a child shall render him
2 ineligible for further consideration in the increase of the
3 widow's annuity, but the annuity to the widow shall be
4 continued thereafter, without regard to her age at that time.
5 (d) A widow's annuity payable on account of any covered
6 employee who shall have been a covered employee for at least
7 18 months shall be reduced by 1/2 of the amount of survivors
8 benefits to which his beneficiaries are eligible under the
9 provisions of the Federal Social Security Act, except that
10 (1) the amount of any widow's annuity payable under this
11 Article shall not be reduced by reason of any increase under
12 that Act which occurs after the offset required by this
13 subsection is first applied to that annuity, and (2) for
14 benefits granted on or after January 1, 1992, the offset
15 under this subsection (d) shall not exceed 50% of the amount
16 of widow's annuity otherwise payable.
17 (e) Upon the death of a recipient of a widow's annuity
18 the excess, if any, of the member's accumulated
19 contributions plus credited interest over all annuity
20 payments to the member and widow, exclusive of the $500 lump
21 sum payment, shall be paid to the named beneficiary of the
22 widow, or if none has been named, to the estate of the widow,
23 provided no reversionary annuity is payable.
24 (f) On January 1, 1981, any recipient of a widow's
25 annuity who was receiving a widow's annuity on or before
26 January 1, 1971, shall have her widow's annuity then being
27 paid increased by 1% for each full year which has elapsed
28 from the date the widow's annuity began. On January 1, 1982,
29 any recipient of a widow's annuity who began receiving a
30 widow's annuity after January 1, 1971, but before January 1,
31 1981, shall have her widow's annuity then being paid
32 increased by 1% for each full year which has elapsed from the
33 date the widow's annuity began. On January 1, 1987, any
34 recipient of a widow's annuity who began receiving the
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1 widow's annuity on or before January 1, 1977, shall have the
2 monthly widow's annuity increased by $1 for each full year
3 which has elapsed since the date the annuity began.
4 On January 1, 1998, every widow who began receiving a
5 widow's annuity on or before January 1, 1990 shall have the
6 monthly widow's annuity increased by an amount equal to 10¢
7 multiplied by the number of full years of the deceased
8 spouse's creditable service multiplied by the number of full
9 years that have elapsed since the widow's annuity began.
10 (g) Beginning January 1, 1990, every widow's annuity
11 shall be increased (1) on each January 1 occurring on or
12 after the commencement of the annuity if the deceased member
13 died while receiving a retirement annuity, or (2) in other
14 cases, on each January 1 occurring on or after the first
15 anniversary of the commencement of the annuity, by an amount
16 equal to 3% of the current amount of the annuity, including
17 any previous increases under this Article. Such increases
18 shall apply without regard to whether the deceased member was
19 in service on or after the effective date of Public Act
20 86-1488, but shall not accrue for any period prior to January
21 1, 1990.
22 (Source: P.A. 86-273; 86-1488; 87-794.)
23 (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
24 Sec. 14-121. Amount of survivors annuity. A survivors
25 annuity beneficiary shall be entitled upon death of the
26 member to a single sum payment of $1,000, payable pro rata
27 among all persons entitled thereto, together with a survivors
28 annuity payable at the rates and under the conditions
29 specified in this Article.
30 (a) If the survivors annuity beneficiary is a spouse,
31 the survivors annuity shall be 30% of final average
32 compensation subject to a maximum payment of $400 per month.
33 (b) If an eligible child or children under the care of a
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1 spouse also survives the member, such spouse as natural
2 guardian of the child or children shall receive, in addition
3 to the foregoing annuity, 20% of final average compensation
4 on account of each such child and 10% of final average
5 compensation divided pro rata among such children, subject to
6 a maximum payment on account of all survivor annuity
7 beneficiaries of $600 per month, or 80% of the member's final
8 average compensation, whichever is the lesser.
9 (c) If the survivors annuity beneficiary or
10 beneficiaries consists of an unmarried child or children, the
11 amount of survivors annuity shall be 20% of final average
12 compensation to each child, and 10% of final average
13 compensation divided pro rata among all such children
14 entitled to such annuity, subject to a maximum payment to all
15 children combined of $600 per month or 80% of the member's
16 final average compensation, whichever is the lesser.
17 (d) If the survivors annuity beneficiary is one or more
18 dependent parents, the annuity shall be 20% of final average
19 compensation to each parent and 10% of final average
20 compensation divided pro rata among the parents who qualify
21 for this annuity, subject to a maximum payment to both
22 dependent parents of $400 per month.
23 (e) The survivors annuity to the spouse, children or
24 dependent parents of a member whose death occurs after the
25 date of last withdrawal, or after retirement, or while in
26 service following reentry into service after retirement but
27 before completing 1 1/2 years of additional creditable
28 service, shall not exceed the lesser of 80% of the member's
29 earned retirement annuity at the date of death or the maximum
30 previously established in this Section.
31 (f) In applying the limitation prescribed on the
32 combined payments to 2 or more survivors annuity
33 beneficiaries, the annuity on account of each beneficiary
34 shall be reduced pro rata until such time as the number of
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1 beneficiaries makes the reduction no longer applicable.
2 (g) A survivors annuity payable on account of any
3 covered employee who shall have been a covered employee for
4 at least 18 months at date of death or last withdrawal,
5 whichever is the later, shall be reduced by 1/2 of the
6 survivors benefits to which his beneficiaries are eligible
7 under the federal Social Security Act, except that (1) the
8 survivors annuity payable under this Article shall not be
9 reduced by any increase under that Act which occurs after the
10 offset required by this subsection is first applied to that
11 annuity, and (2) for benefits granted on or after January 1,
12 1992, the offset under this subsection (g) shall not exceed
13 50% of the amount of survivors annuity otherwise payable.
14 (h) The minimum payment to a beneficiary hereunder shall
15 be $60 per month, which shall be reduced in accordance with
16 the limitation prescribed on the combined payments to all
17 beneficiaries of a member.
18 (i) Subject to the conditions set forth in Section
19 14-120, the minimum total survivors annuity benefit payable
20 to the survivors annuity beneficiaries of a deceased member
21 or annuitant whose death occurs on or after January 1, 1984,
22 shall be 50% of the amount of retirement annuity that was or
23 would have been payable to the deceased on the date of death,
24 regardless of the age of the deceased on such date. If the
25 minimum total benefit provided by this subsection exceeds the
26 maximum otherwise imposed by this Section, the minimum total
27 benefit shall nevertheless be payable. Any increase in the
28 total survivors annuity benefit resulting from the operation
29 of this subsection shall be divided among the survivors
30 annuity beneficiaries of the deceased in proportion to their
31 shares of the total survivors annuity benefit otherwise
32 payable under this Section.
33 (j) Any survivors annuity beneficiary whose annuity
34 terminates due to any condition specified in this Article
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1 other than death shall be entitled to a refund of the excess,
2 if any, of the accumulated contributions of the member plus
3 credited interest over all payments to the member and
4 beneficiary or beneficiaries, exclusive of the single sum
5 payment of $1,000, provided no future survivors or
6 reversionary annuity benefits are payable.
7 (k) Upon the death of the last eligible recipient of a
8 survivors annuity the excess, if any, of the member's
9 accumulated contributions plus credited interest over all
10 annuity payments to the member and survivors exclusive of the
11 single sum payment of $1000, shall be paid to the named
12 beneficiary of the last eligible survivor, or if none has
13 been named, to the estate of the last eligible survivor,
14 provided no reversionary annuity is payable.
15 (l) On January 1, 1981, any survivor who was receiving a
16 survivors annuity on or before January 1, 1971, shall have
17 his survivors annuity then being paid increased by 1% for
18 each full year which has elapsed from the date the annuity
19 began. On January 1, 1982, any survivor who began receiving
20 a survivor's annuity after January 1, 1971, but before
21 January 1, 1981, shall have his survivor's annuity then being
22 paid increased by 1% for each full year that has elapsed from
23 the date the annuity began. On January 1, 1987, any survivor
24 who began receiving a survivor's annuity on or before January
25 1, 1977, shall have the monthly survivor's annuity increased
26 by $1 for each full year which has elapsed since the date the
27 survivor's annuity began.
28 On January 1, 1998, every survivor who began receiving a
29 survivor's annuity on or before January 1, 1990 shall have
30 the monthly survivor's annuity increased by an amount equal
31 to 10¢ multiplied by the number of full years of the deceased
32 member's creditable service multiplied by the number of full
33 years that have elapsed since the survivor's annuity began.
34 (m) Beginning January 1, 1990, every survivor's annuity
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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 (Source: P.A. 86-273; 86-1488; 87-794.)
13 (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
14 (Text of Section before amendment by P.A. 89-507)
15 Sec. 14-133. Contributions on behalf of members.
16 (a) Each participating employee shall make contributions
17 to the System, based on the employee's compensation, as
18 follows:
19 (1) Covered employees, except as indicated below,
20 4% 3 1/2% for retirement annuity, and 0.5% 1/2 of 1% for
21 a widow or survivors annuity;
22 (2) Noncovered employees, except as indicated
23 below, 7.5% 7% for retirement annuity and 1% for a widow
24 or survivors annuity;
25 (3) Noncovered employees serving in a position in
26 which "eligible creditable service" as defined in Section
27 14-110 may be earned, 8.5% 8 1/2% for retirement annuity
28 and 1% for a widow or survivors annuity;
29 (4) Covered employees serving in a position in
30 which "eligible creditable service" as defined in Section
31 14-110 may be earned, 5% for retirement annuity and 0.5%
32 for a widow or survivors annuity;
33 (5) Each full-time security employee of the
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1 Department of Corrections or of the Department of Mental
2 Health and Developmental Disabilities who is a covered
3 employee, 5% for retirement annuity and 0.5% 1/2 of 1%
4 for a widow or survivors annuity;
5 (6) Each full-time security employee of the
6 Department of Corrections or of the Department of Mental
7 Health and Developmental Disabilities who is not a
8 covered employee, 8.5% 8 1/2% for retirement annuity and
9 1% for a widow or survivors annuity.
10 (b) Contributions shall be in the form of a deduction
11 from compensation and shall be made notwithstanding that the
12 compensation paid in cash to the employee shall be reduced
13 thereby below the minimum prescribed by law or regulation.
14 Each member is deemed to consent and agree to the deductions
15 from compensation provided for in this Article, and shall
16 receipt in full for salary or compensation.
17 (Source: P.A. 86-273.)
18 (Text of Section after amendment by P.A. 89-507)
19 Sec. 14-133. Contributions on behalf of members.
20 (a) Each participating employee shall make contributions
21 to the System, based on the employee's compensation, as
22 follows:
23 (1) Covered employees, except as indicated below,
24 4% 3 1/2% for retirement annuity, and 0.5% 1/2 of 1% for
25 a widow or survivors annuity;
26 (2) Noncovered employees, except as indicated
27 below, 7.5% 7% for retirement annuity and 1% for a widow
28 or survivors annuity;
29 (3) Noncovered employees serving in a position in
30 which "eligible creditable service" as defined in Section
31 14-110 may be earned, 8.5% 8 1/2% for retirement annuity
32 and 1% for a widow or survivors annuity;
33 (4) Covered employees serving in a position in
34 which "eligible creditable service" as defined in Section
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1 14-110 may be earned, 5% for retirement annuity and 0.5%
2 for a widow or survivors annuity;
3 (5) Each full-time security employee of the
4 Department of Corrections or of the Department of Human
5 Services who is a covered employee, 5% for retirement
6 annuity and 0.5% 1/2 of 1% for a widow or survivors
7 annuity;
8 (6) Each full-time security employee of the
9 Department of Corrections or of the Department of Human
10 Services who is not a covered employee, 8.5% 8 1/2% for
11 retirement annuity and 1% for a widow or survivors
12 annuity.
13 (b) Contributions shall be in the form of a deduction
14 from compensation and shall be made notwithstanding that the
15 compensation paid in cash to the employee shall be reduced
16 thereby below the minimum prescribed by law or regulation.
17 Each member is deemed to consent and agree to the deductions
18 from compensation provided for in this Article, and shall
19 receipt in full for salary or compensation.
20 (Source: P.A. 89-507, eff. 7-1-97.)
21 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
22 Sec. 15-136. Retirement annuities - Amount.
23 (a) The amount of the retirement annuity shall be
24 determined by whichever of the following rules is applicable
25 and provides the largest annuity:
26 Rule 1: The retirement annuity shall be 1.67% of final
27 rate of earnings for each of the first 10 years of service,
28 1.90% for each of the next 10 years of service, 2.10% for
29 each year of service in excess of 20 but not exceeding 30,
30 and 2.30% for each year in excess of 30; or for persons who
31 retire on or after the effective date of this amendatory Act
32 of 1997, 2.2% of the final rate of earnings for each year of
33 service.
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1 Rule 2: The retirement annuity shall be the sum of the
2 following, determined from amounts credited to the
3 participant in accordance with the actuarial tables and the
4 prescribed rate of interest in effect at the time the
5 retirement annuity begins:
6 (i) The normal annuity which can be provided on an
7 actuarial equivalent basis, by the accumulated normal
8 contributions as of the date the annuity begins; and
9 (ii) an annuity from employer contributions of an
10 amount which can be provided on an actuarially equivalent
11 basis from the accumulated normal contributions made by
12 the participant under Section 15-113.6 and Section
13 15-113.7 plus 1.4 times all other accumulated normal
14 contributions made by the participant.
15 Rule 3: The retirement annuity of a participant who is
16 employed at least one-half time during the period on which
17 his or her final rate of earnings is based, shall be equal to
18 the participant's years of service not to exceed 30,
19 multiplied by (1) $96 if the participant's final rate of
20 earnings is less than $3,500, (2) $108 if the final rate of
21 earnings is at least $3,500 but less than $4,500, (3) $120 if
22 the final rate of earnings is at least $4,500 but less than
23 $5,500, (4) $132 if the final rate of earnings is at least
24 $5,500 but less than $6,500, (5) $144 if the final rate of
25 earnings is at least $6,500 but less than $7,500, (6) $156 if
26 the final rate of earnings is at least $7,500 but less than
27 $8,500, (7) $168 if the final rate of earnings is at least
28 $8,500 but less than $9,500, and (8) $180 if the final rate
29 of earnings is $9,500 or more.
30 Rule 4: A participant who is at least age 50 and has 25
31 or more years of service as a police officer or firefighter,
32 and a participant who is age 55 or over and has at least 20
33 but less than 25 years of service as a police officer or
34 firefighter, shall be entitled to a retirement annuity of 2
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1 1/4% of the final rate of earnings for each of the first 10
2 years of service as a police officer or firefighter, 2 1/2%
3 for each of the next 10 years of service as a police officer
4 or firefighter, and 2 3/4% for each year of service as a
5 police officer or firefighter in excess of 20. The
6 retirement annuity for all other service shall be computed
7 under Rule 1.
8 (b) The retirement annuity provided under Rules 1 and 3
9 above shall be reduced by 1/2 of 1% for each month the
10 participant is under age 60 at the time of retirement.
11 However, this reduction shall not apply in the following
12 cases:
13 (1) For a disabled participant whose disability
14 benefits have been discontinued because he or she has
15 exhausted eligibility for disability benefits under
16 clause (6) (5) of Section 15-152;
17 (2) For a participant who has at least 35 years of
18 service; or
19 (3) For that portion of a retirement annuity which
20 has been provided on account of service of the
21 participant during periods when he or she performed the
22 duties of a police officer or firefighter, if these
23 duties were performed for at least 5 years immediately
24 preceding the date the retirement annuity is to begin.
25 (c) The maximum retirement annuity provided under Rules
26 1, 2, and 4 shall be the lesser of (1) the annual limit of
27 benefits as specified in Section 415 of the Internal Revenue
28 Code of 1986, as such Section may be amended from time to
29 time and as such benefit limits shall be adjusted by the
30 Commissioner of Internal Revenue, and (2) 75% of final rate
31 of earnings; however, this limitation of 75% of final rate of
32 earnings shall not apply to a person who is a participant or
33 annuitant on September 15, 1977 if it results in a retirement
34 annuity less than that which is payable to the annuitant or
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1 which would have been payable to the participant under the
2 provisions of this Article in effect on June 30, 1977.
3 (d) An annuitant whose status as an employee terminates
4 after August 14, 1969 shall receive automatic increases in
5 his or her retirement annuity as follows:
6 Effective January 1 immediately following the date the
7 retirement annuity begins, the annuitant shall receive an
8 increase in his or her monthly retirement annuity of 0.125%
9 of the monthly retirement annuity provided under Rule 1, Rule
10 2, Rule 3, or Rule 4, contained in this Section, multiplied
11 by the number of full months which elapsed from the date the
12 retirement annuity payments began to January 1, 1972, plus
13 0.1667% of such annuity, multiplied by the number of full
14 months which elapsed from January 1, 1972, or the date the
15 retirement annuity payments began, whichever is later, to
16 January 1, 1978, plus 0.25% of such annuity multiplied by the
17 number of full months which elapsed from January 1, 1978, or
18 the date the retirement annuity payments began, whichever is
19 later, to the effective date of the increase.
20 The annuitant shall receive an increase in his or her
21 monthly retirement annuity on each January 1 thereafter
22 during the annuitant's life of 3% of the monthly annuity
23 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
24 this Section. The change made under this subsection by P.A.
25 81-970 is effective January 1, 1980 and applies to each
26 annuitant whose status as an employee terminates before or
27 after that date.
28 Beginning January 1, 1990, all automatic annual increases
29 payable under this Section shall be calculated as a
30 percentage of the total annuity payable at the time of the
31 increase, including all increases previously granted under
32 this Article.
33 The change made in this subsection by P.A. 85-1008 is
34 effective January 26, 1988, and is applicable without regard
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1 to whether status as an employee terminated before that date.
2 (e) If, on January 1, 1987, or the date the retirement
3 annuity payment period begins, whichever is later, the sum of
4 the retirement annuity provided under Rule 1 or Rule 2 of
5 this Section and the automatic annual increases provided
6 under the preceding subsection or Section 15-136.1, amounts
7 to less than the retirement annuity which would be provided
8 by Rule 3, the retirement annuity shall be increased as of
9 January 1, 1987, or the date the retirement annuity payment
10 period begins, whichever is later, to the amount which would
11 be provided by Rule 3 of this Section. Such increased amount
12 shall be considered as the retirement annuity in determining
13 benefits provided under other Sections of this Article. This
14 paragraph applies without regard to whether status as an
15 employee terminated before the effective date of this
16 amendatory Act of 1987, provided that the annuitant was
17 employed at least one-half time during the period on which
18 the final rate of earnings was based.
19 (f) A participant is entitled to such additional annuity
20 as may be provided on an actuarial equivalent basis, by any
21 accumulated additional contributions to his or her credit.
22 However, the additional contributions made by the participant
23 toward the automatic increases in annuity provided under this
24 Section shall not be taken into account in determining the
25 amount of such additional annuity.
26 (g) If, (1) by law, a function of a governmental unit,
27 as defined by Section 20-107 of this Code, is transferred in
28 whole or in part to an employer, and (2) a participant
29 transfers employment from such governmental unit to such
30 employer within 6 months after the transfer of the function,
31 and (3) the sum of (A) the annuity payable to the participant
32 under Rule 1, 2, or 3 of this Section (B) all proportional
33 annuities payable to the participant by all other retirement
34 systems covered by Article 20, and (C) the initial primary
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1 insurance amount to which the participant is entitled under
2 the Social Security Act, is less than the retirement annuity
3 which would have been payable if all of the participant's
4 pension credits validated under Section 20-109 had been
5 validated under this system, a supplemental annuity equal to
6 the difference in such amounts shall be payable to the
7 participant.
8 (h) On January 1, 1981, an annuitant who was receiving a
9 retirement annuity on or before January 1, 1971 shall have
10 his or her retirement annuity then being paid increased $1
11 per month for each year of creditable service. On January 1,
12 1982, an annuitant whose retirement annuity began on or
13 before January 1, 1977, shall have his or her retirement
14 annuity then being paid increased $1 per month for each year
15 of creditable service.
16 (i) On January 1, 1987, any annuitant whose retirement
17 annuity began on or before January 1, 1977, shall have the
18 monthly retirement annuity increased by an amount equal to 8¢
19 per year of creditable service times the number of years that
20 have elapsed since the annuity began.
21 On January 1, 1998, every annuitant who began receiving a
22 retirement annuity on or before January 1, 1990 shall have
23 the monthly retirement annuity increased by an amount equal
24 to 10¢ multiplied by the number of full years of creditable
25 service multiplied by the number of full years that have
26 elapsed since the annuity began.
27 (Source: P.A. 86-272; 86-273; 86-1028; revised 5-17-96.)
28 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
29 Sec. 15-145. Survivors insurance benefits; Conditions
30 and amounts.
31 (a) The survivors insurance benefits provided under this
32 Section shall be payable upon the death of (1) a
33 participating employee with at least 1 1/2 years of service,
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1 (2) a participant who terminated employment with at least 10
2 years of service, and (3) an annuitant in receipt of a
3 retirement annuity or disability retirement annuity under
4 this Article.
5 Service under the State Employees' Retirement System of
6 Illinois, the Teachers' Retirement System of the State of
7 Illinois and the Public School Teacher's Pension and
8 Retirement Fund of Chicago shall be considered in determining
9 eligibility for survivors benefits under this Section.
10 If by law, a function of a governmental unit, as defined
11 by Section 20-107, is transferred in whole or in part to an
12 employer, and an employee transfers employment from this
13 governmental unit to such employer within 6 months after the
14 transfer of this function, the service credits in the
15 governmental unit's retirement system which have been
16 validated under Section 20-109 shall be considered in
17 determining eligibility for survivors benefits under this
18 Section.
19 (b) A surviving spouse of a deceased participant, or of
20 a deceased annuitant who had a survivors insurance
21 beneficiary at the time of retirement, shall receive a
22 survivors annuity of 30% of the final rate of earnings.
23 Payments shall begin on the day following the participant's
24 or annuitant's death or the date the surviving spouse attains
25 age 50, whichever is later, and continue until the death of
26 the surviving spouse. The annuity shall be payable to the
27 surviving spouse prior to attainment of age 50 if the
28 surviving spouse has in his or her care a deceased
29 participant's or annuitant's dependent unmarried child under
30 age 18 who is eligible for a survivors annuity. Remarriage
31 of a surviving spouse prior to attainment of age 55 shall
32 disqualify him or her for the receipt of a survivors annuity.
33 (c) Each dependent unmarried child under age 18 of a
34 deceased participant, or of a deceased annuitant who had a
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1 survivors insurance beneficiary at the time of his or her
2 retirement, shall receive a survivors annuity equal to the
3 sum of (1) 20% of the final rate of earnings, and (2) 10% of
4 the final rate of earnings divided by the number of children
5 entitled to this benefit. Payments shall begin on the day
6 following the participant's or annuitant's death and continue
7 until the child marries, dies or attains age 18. If the child
8 is in the care of a surviving spouse who is eligible for
9 survivors insurance benefits, the child's benefit shall be
10 paid to the surviving spouse.
11 Each unmarried child over age 18 of a deceased
12 participant or of a deceased annuitant who had a survivor's
13 insurance beneficiary at the time of his or her retirement,
14 and who was dependent upon the participant or annuitant by
15 reason of a physical or mental disability which began prior
16 to the date the child attained age 18, shall receive a
17 survivor's annuity equal to the sum of (1) 20% of the final
18 rate of earnings, and (2) 10% of the final rate of earnings
19 divided by the number of children entitled to survivors
20 benefits. Payments shall begin on the day following the
21 participant's or annuitant's death and continue until the
22 child marries, dies or is no longer disabled. If the child
23 is in the care of a surviving spouse who is eligible for
24 survivors insurance benefits, the child's benefit may be paid
25 to the surviving spouse. For the purposes of this Section,
26 disability means inability to engage in any substantial
27 gainful activity by reason of any medically determinable
28 physical or mental impairment that can be expected to result
29 in death or that has lasted or can be expected to last for a
30 continuous period of at least one year.
31 (d) Each dependent parent of a deceased participant, or
32 of a deceased annuitant who had a survivors insurance
33 beneficiary at the time of his or her retirement, shall
34 receive a survivors annuity equal to the sum of (1) 20% of
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1 final rate of earnings, and (2) 10% of final rate of earnings
2 divided by the number of parents who qualify for the benefit.
3 Payments shall begin when the parent reaches age 55 or the
4 day following the participant's or annuitant's death,
5 whichever is later, and continue until the parent dies.
6 Remarriage of a parent prior to attainment of age 55 shall
7 disqualify the parent for the receipt of a survivors annuity.
8 (e) In addition to the survivors annuity provided above,
9 each survivors insurance beneficiary shall, upon death of the
10 participant or annuitant, receive a lump sum payment of
11 $1,000 divided by the number of such beneficiaries.
12 (f) The changes made in this Section by Public Act
13 81-712 pertaining to survivors annuities in cases of
14 remarriage prior to age 55 shall apply to each survivors
15 insurance beneficiary who remarries after June 30, 1979,
16 regardless of the date that the participant or annuitant
17 terminated his employment or died.
18 (g) On January 1, 1981, any person who was receiving a
19 survivors annuity on or before January 1, 1971 shall have the
20 survivors annuity then being paid increased by 1% for each
21 full year which has elapsed from the date the annuity began.
22 On January 1, 1982, any survivor whose annuity began after
23 January 1, 1971, but before January 1, 1981, shall have the
24 survivor's annuity then being paid increased by 1% for each
25 year which has elapsed from the date the survivor's annuity
26 began. On January 1, 1987, any survivor who began receiving a
27 survivor's annuity on or before January 1, 1977, shall have
28 the monthly survivor's annuity increased by $1 for each full
29 year which has elapsed since the date the survivor's annuity
30 began.
31 On January 1, 1998, every survivor who began receiving a
32 survivor's annuity on or before January 1, 1990 shall have
33 the monthly survivor's annuity increased by an amount equal
34 to $0.10 multiplied by the number of full years of the
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1 deceased member's creditable service multiplied by the number
2 of full years that have elapsed since the survivor's annuity
3 began.
4 (h) If the sum of the lump sum and total monthly
5 survivor benefits payable under this Section upon the death
6 of a participant amounts to less than the sum of the death
7 benefits payable under items (2) and (3) of Section 15-141,
8 the difference shall be paid in a lump sum to the beneficiary
9 of the participant who is living on the date that this
10 additional amount becomes payable.
11 (i) If the sum of the lump sum and total monthly
12 survivor benefits payable under this Section upon the death
13 of an annuitant receiving a retirement annuity or disability
14 retirement annuity amounts to less than the death benefit
15 payable under Section 15-142, the difference shall be paid to
16 the beneficiary of the annuitant who is living on the date
17 that this additional amount becomes payable.
18 (j) Effective on the later of (1) January 1, 1990, or
19 (2) the January 1 on or next after the date on which the
20 survivor annuity begins, if the deceased member died while
21 receiving a retirement annuity, or in all other cases the
22 January 1 nearest the first anniversary of the date the
23 survivor annuity payments begin, every survivors insurance
24 beneficiary shall receive an increase in his or her monthly
25 survivors annuity of 3%. On each January 1 after the initial
26 increase, the monthly survivors annuity shall be increased by
27 3% of the total survivors annuity provided under this
28 Article, including previous increases provided by this
29 subsection. Such increases shall apply to the survivors
30 insurance beneficiaries of each participant and annuitant,
31 whether or not the employment status of the participant or
32 annuitant terminates before the effective date of this
33 amendatory Act of 1990.
34 (k) If the Internal Revenue Code of 1986, as amended,
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1 requires that the survivors benefits be payable at an age
2 earlier than that specified in this Section the benefits
3 shall begin at the earlier age, in which event, the
4 survivor's beneficiary shall be entitled only to that amount
5 which is equal to the actuarial equivalent of the benefits
6 provided by this Section.
7 (Source: P.A. 86-272; 86-273; 86-1028; 86-1488.)
8 (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
9 Sec. 15-157. Employee Contributions.
10 (a) Each participating employee shall make contributions
11 towards the retirement annuity of each payment of earnings
12 applicable to employment under this system on and after the
13 date of becoming a participant as follows: Prior to
14 September 1, 1949, 3 1/2% of earnings; from September 1, 1949
15 to August 31, 1955, 5%; from September 1, 1955 to August 31,
16 1969, 6%; from September 1, 1969, 6 1/2%. These
17 contributions are to be considered as normal contributions
18 for purposes of this Article.
19 Each participant who is a police officer or firefighter
20 shall make normal contributions of 8% of each payment of
21 earnings applicable to employment as a police officer or
22 firefighter under this system on or after September 1, 1981,
23 unless he or she files with the board within 60 days after
24 the effective date of this amendatory Act of 1991 or 60 days
25 after the board receives notice that he or she is employed as
26 a police officer or firefighter, whichever is later, a
27 written notice waiving the retirement formula provided by
28 Rule 4 of Section 15-136. This waiver shall be irrevocable.
29 If a participant had met the conditions set forth in Section
30 15-132.1 prior to the effective date of this amendatory Act
31 of 1991 but failed to make the additional normal
32 contributions required by this paragraph, he or she may elect
33 to pay the additional contributions plus compound interest at
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1 the effective rate. If such payment is received by the
2 board, the service shall be considered as police officer
3 service in calculating the retirement annuity under Rule 4 of
4 Section 15-136.
5 (a-1) Starting on the effective date of this amendatory
6 Act of 1997, each participating employee shall make
7 additional contributions of 0.5% of earnings to finance a
8 portion of the cost of the increases in retirement annuity
9 provided under Section 15-136 by this amendatory Act of 1997.
10 These contributions shall be considered as a part of normal
11 contributions.
12 (b) Starting September 1, 1969, each participating
13 employee shall make additional contributions of 1/2 of 1% of
14 earnings to finance a portion of the cost of the annual
15 increases in retirement annuity provided under Section
16 15-136.
17 (c) Each participating employee shall make survivors
18 insurance contributions of 1% of earnings applicable under
19 this system on and after August 1, 1959. Contributions in
20 excess of $80 during any fiscal year beginning August 31,
21 1969 and in excess of $120 during any fiscal year thereafter
22 until September 1, 1971 shall be considered as additional
23 contributions for purposes of this Article.
24 (d) If the board by board rule so permits and subject to
25 such conditions and limitations as may be specified in its
26 rules, a participant may make other additional contributions
27 of such percentage of earnings or amounts as the participant
28 shall elect in a written notice thereof received by the
29 board.
30 (e) That fraction of a participant's total accumulated
31 normal contributions, the numerator of which is equal to the
32 number of years of service in excess of that which is
33 required to qualify for the maximum retirement annuity, and
34 the denominator of which is equal to the total service of the
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1 participant, shall be considered as accumulated additional
2 contributions. The determination of the applicable maximum
3 annuity and the adjustment in contributions required by this
4 provision shall be made as of the date of the participant's
5 retirement.
6 (f) Notwithstanding the foregoing, a participating
7 employee shall not be required to make contributions under
8 this Section after the date upon which continuance of such
9 contributions would otherwise cause his or her retirement
10 annuity to exceed the maximum retirement annuity as specified
11 in clause (1) of subsection (c) of Section 15-136.
12 (Source: P.A. 86-272; 86-1488.)
13 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
14 Sec. 16-133. Retirement annuity; amount.
15 (a) The amount of the retirement annuity shall be the
16 larger of the amounts determined under paragraphs (A) and (B)
17 below:
18 (A) An amount consisting of the sum of the
19 following:
20 (1) An amount that can be provided on an
21 actuarially equivalent basis by the member's
22 accumulated contributions at the time of retirement;
23 and
24 (2) The sum of (i) the amount that can be
25 provided on an actuarially equivalent basis by the
26 member's accumulated contributions representing
27 service prior to July 1, 1947, and (ii) the amount
28 that can be provided on an actuarially equivalent
29 basis by the amount obtained by multiplying 1.4
30 times the member's accumulated contributions
31 covering service subsequent to June 30, 1947; and
32 (3) If there is prior service, 2 times the
33 amount that would have been determined under
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1 subparagraph (2) of paragraph (A) above on account
2 of contributions which would have been made during
3 the period of prior service creditable to the member
4 had the System been in operation and had the member
5 made contributions at the contribution rate in
6 effect prior to July 1, 1947.
7 (B) An amount consisting of the greatest greater of
8 the following:
9 (1) 1.67% of final average salary for each of
10 the first 10 years of creditable service, l.90% of
11 final average salary for each year in excess of 10
12 but not exceeding 20, 2.10% of final average salary
13 for each year in excess of 20 but not exceeding 30,
14 and 2.30% of final average salary for each year in
15 excess of 30; and
16 (2) for persons who retire on or after the
17 effective date of this amendatory Act of 1997, 2.2%
18 of final average salary for each year of service;
19 (3) 1 1/2% of final average salary for each
20 year of creditable service plus the sum $7.50 for
21 each of the first 20 years of creditable service.
22 The amount of the retirement annuity determined
23 under this paragraph (B) shall be reduced by 1/2 of 1%
24 for each month that the member is less than age 60 at the
25 time the retirement annuity begins. However, this
26 reduction shall not apply (i) if the member has at least
27 35 years of creditable service, or (ii) if the member
28 retires on account of disability under Section 16-149.2
29 of this Article with at least 20 years of creditable
30 service.
31 (b) For purposes of this Section, final average salary
32 shall be the average salary for the highest 4 consecutive
33 years within the last 10 years of creditable service as
34 determined under rules of the board. The minimum final
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1 average salary shall be considered to be $2,400 per year.
2 In the determination of final average salary for members
3 other than elected officials and their appointees when such
4 appointees are allowed by statute, that part of a member's
5 salary for any year beginning after June 30, 1979 which
6 exceeds the member's annual full-time salary rate with the
7 same employer for the preceding year by more than 20% shall
8 be excluded.
9 (c) In determining the amount of the retirement annuity
10 under paragraph (B) of this Section, a fractional year shall
11 be granted proportional credit.
12 (d) The retirement annuity determined under paragraph
13 (B) of this Section shall be available only to members who
14 render teaching service after July 1, 1947 for which member
15 contributions are required, and to annuitants who re-enter
16 under the provisions of Section 16-150.
17 (e) The maximum retirement annuity provided under
18 paragraph (B) of this Section shall be 75% of final average
19 salary.
20 (Source: P.A. 86-273; 87-794; 87-1265.)
21 (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
22 Sec. 16-133.1. Automatic annual increase in annuity.
23 (a) Each member with creditable service and retiring on
24 or after August 26, 1969 is entitled to the automatic annual
25 increases in annuity provided under this Section while
26 receiving a retirement annuity or disability retirement
27 annuity from the system.
28 An annuitant shall first be entitled to an initial
29 increase under this Section on the January 1 next following
30 the first anniversary of retirement, or January 1 of the year
31 next following attainment of age 61, whichever is later. At
32 such time, the system shall pay an initial increase
33 determined as follows: 1.5% of the originally granted
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1 retirement annuity or disability retirement annuity
2 multiplied by the number of years elapsed from the later of
3 (1) attainment of age 55, or (2) the date of retirement,
4 until January 1, 1972, plus 2% of the originally granted
5 annuity multiplied by the number of years elapsed between
6 January 1, 1972 and January 1, 1978, plus 3% of the
7 originally granted annuity multiplied by the number of years
8 elapsed between January 1, 1978 and the effective date of the
9 initial increase. However, the initial annual increase
10 calculated under this Section for the recipient of a
11 disability retirement annuity granted under Section 16-149.2
12 shall be reduced by an amount equal to the total of all
13 increases in that annuity received under Section 16-149.5
14 (but not exceeding 100% of the amount of the initial increase
15 otherwise provided under this Section).
16 Following the initial increase, automatic annual
17 increases in annuity shall be payable on each January 1
18 thereafter during the lifetime of the annuitant, determined
19 as a percentage of the originally granted retirement annuity
20 or disability retirement annuity for increases granted prior
21 to January 1, 1990, and calculated as a percentage of the
22 total amount of annuity, including previous increases under
23 this Section, for increases granted on or after January 1,
24 1990, as follows: 1.5% for periods prior to January 1, 1972,
25 2% for periods after December 31, 1971 and prior to January
26 1, 1978, and 3% for periods after December 31, 1977.
27 (b) The automatic annual increases in annuity provided
28 under this Section shall not be applicable unless a member
29 has made contributions toward such increases for a period
30 equivalent to one full year of creditable service. If a
31 member contributes for service performed after August 26,
32 1969 but the member becomes an annuitant before such
33 contributions amount to one full year's contributions based
34 on the salary at the date of retirement, he or she may pay
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1 the necessary balance of the contributions to the system and
2 be eligible for the automatic annual increases in annuity
3 provided under this Section.
4 (c) Each member shall make contributions toward the cost
5 of the automatic annual increases in annuity as provided
6 under Section 16-152.
7 (d) An annuitant receiving a retirement annuity or
8 disability retirement annuity on July 1, 1969, who
9 subsequently re-enters service as a teacher is eligible for
10 the automatic annual increases in annuity provided under this
11 Section if he or she renders at least one year of creditable
12 service following the latest re-entry.
13 (e) In addition to the automatic annual increases in
14 annuity provided under this Section, an annuitant who meets
15 the service requirements of this Section and whose retirement
16 annuity or disability retirement annuity began on or before
17 January 1, 1971 shall receive, on January 1, 1981, an
18 increase in the annuity then being paid of one dollar per
19 month for each year of creditable service. On January 1,
20 1982, an annuitant whose retirement annuity or disability
21 retirement annuity began on or before January 1, 1977 shall
22 receive an increase in the annuity then being paid of one
23 dollar per month for each year of creditable service.
24 On January 1, 1987, any annuitant whose retirement
25 annuity began on or before January 1, 1977, shall receive an
26 increase in the monthly retirement annuity equal to 8¢ per
27 year of creditable service times the number of years that
28 have elapsed since the annuity began.
29 On January 1, 1998, every annuitant who began receiving a
30 retirement annuity on or before January 1, 1990 shall have
31 the monthly retirement annuity increased by an amount equal
32 to 10¢ multiplied by the number of full years of creditable
33 service multiplied by the number of full years that have
34 elapsed since the retirement annuity began.
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1 (Source: P.A. 86-273; 86-1488.)
2 (40 ILCS 5/16-143.1) (from Ch. 108 1/2, par. 16-143.1)
3 Sec. 16-143.1. Increase in survivor benefits.
4 (a) Beginning January 1, 1990, each survivor's benefit
5 and each reversionary annuity payable under Section 16-136
6 shall be increased by 3% of the currently payable amount
7 thereof (1) on each January 1 occurring on or after the
8 commencement of the annuity if the deceased teacher died
9 while receiving a retirement or disability retirement
10 annuity, or (2) in other cases, on each January 1 occurring
11 on or after the first anniversary of the granting of the
12 benefit, without regard to whether the deceased teacher was
13 in service on or after the effective date of this amendatory
14 Act of 1991, but such increases shall not accrue for any
15 period prior to January 1, 1990.
16 (b) On January 1, 1981, any beneficiary who was
17 receiving a survivor's monthly benefit on or before January
18 1, 1971, shall have the benefit then being paid increased by
19 1% for each full year elapsed from the date the survivor's
20 benefit began. On January 1, 1982, any beneficiary who began
21 receiving a survivor's monthly benefit after January 1, 1971,
22 but before January 1, 1981 shall have the benefit then being
23 paid increased by 1% for each year elapsed from the date the
24 survivor's benefit began.
25 On January 1, 1987, any beneficiary whose monthly
26 survivor's benefit began on or before January 1, 1977, shall
27 have the monthly survivor's benefit increased by $1 for each
28 full year which has elapsed since the date the survivor's
29 benefit began.
30 On January 1, 1998, every beneficiary who began receiving
31 a survivor's benefit on or before January 1, 1990 shall have
32 the monthly survivor's benefit increased by an amount equal
33 to 10¢ multiplied by the number of full years of the deceased
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1 member's creditable service multiplied by the number of full
2 years that have elapsed since the survivor's benefit began.
3 (Source: P.A. 86-273; 86-1488.)
4 (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
5 Sec. 16-152. Contributions by members.
6 (a) Each member shall make contributions for membership
7 service to this system as follows:
8 (1) Effective July 1, 1971, contributions of 6 1/2%
9 of salary towards the cost of the retirement annuity.
10 Such contributions shall be deemed "normal
11 contributions".
12 (2) Effective July 1, 1969, contributions of 1/2 of
13 1% of salary toward the cost of the automatic annual
14 increase in retirement annuity provided under Section
15 16-133.1.
16 (3) Effective July 24, 1959, contributions of 1% of
17 salary towards the cost of survivor benefits. Such
18 contributions shall not be credited to the individual
19 account of the member and shall not be subject to refund
20 except as provided under Section 16-143.2.
21 (4) Starting on the effective date of this
22 amendatory Act of 1997, each member shall make additional
23 contributions of 0.5% of salary to finance a portion of
24 the cost of the increases in retirement annuity provided
25 under Section 16-133 by this amendatory Act of 1997.
26 These contributions shall be considered as a part of
27 normal contributions.
28 (b) The minimum required contribution for any year of
29 full-time teaching service shall be $192.
30 (c) Contributions shall not be required of any annuitant
31 receiving a retirement annuity who is given temporary
32 employment not exceeding that permitted under Section 16-118.
33 (Source: P.A. 83-1440.)
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1 Section 95. No acceleration or delay. Where this Act
2 makes changes in a statute that is represented in this Act by
3 text that is not yet or no longer in effect (for example, a
4 Section represented by multiple versions), the use of that
5 text does not accelerate or delay the taking effect of (i)
6 the changes made by this Act or (ii) provisions derived from
7 any other Public Act.
8 Section 99. Effective date. This Act takes effect upon
9 becoming law.