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90_SB0335
40 ILCS 5/5-132 from Ch. 108 1/2, par. 5-132
30 ILCS 805/8.21 new
Amends the Chicago Police Article of the Pension Code to
base retirement benefits on the highest 36 months, rather
than 4 years, of salary within the last 10 years of service,
for persons retiring after December 31, 1997. Amends the
State Mandates Act to require implementation without
reimbursement. Effective immediately.
LRB9002272EGfg
LRB9002272EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Section 5-132 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 Section 5-132 as follows:
7 (40 ILCS 5/5-132) (from Ch. 108 1/2, par. 5-132)
8 Sec. 5-132. Minimum annuity. Any policeman who withdraws
9 on or after July 8, 1957, or any policeman transferred to the
10 police service of the city under the Exchange of Functions
11 Act of 1957 who withdraws on or after July 17, 1959, after
12 completing at least 20 years of service, for whom the annuity
13 otherwise provided in this Article is less than that stated
14 in this Section, has a right to receive annuity as follows:
15 (a) If he is age 55 or more on withdrawal, his annuity
16 after such withdrawal, shall be equal to 2% of the average
17 salary for 4 consecutive years of highest salaries within the
18 last 10 years of service before withdrawal, for each year of
19 service, together with 1/6 of 1% of such average salary for
20 each complete month of service of each fractional year, but
21 not in excess of 75% of the average annual salary.
22 (b) If he is age 50 or more but less than age 55 on
23 withdrawal, his annuity shall be equal to 2% of the average
24 salary for the 4 highest consecutive years of the last 10
25 years of service for each year of service, together with 1/16
26 of 1% of such average salary for each month of each
27 fractional year of service, reduced by 1/2 of 1% for each
28 month that he is less than age 55.
29 (c) If he is less than age 50 on withdrawal, he may,
30 upon attainment of age 50 or over, become entitled to the
31 annuity provided in this Section or, he may, upon application
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1 before age 50, receive a refund of the deductions from
2 salary, plus interest at 1 1/2% per annum if he is entitled
3 to refund under Section 5-163.
4 (d) In lieu of the annuity provided in the foregoing
5 provisions of this Section 5-132 any policeman who withdraws
6 from the service after December 31, 1973, after having
7 attained age 53 in the service with 23 or more years of
8 service credit shall be entitled to an annuity computed as
9 follows if such annuity is greater than that provided in the
10 foregoing paragraphs of this Section 5-132: An annuity equal
11 to 50% of the average salary for the 4 highest consecutive
12 years of the last 10 years of service plus additional annuity
13 equal to 2% of such average salary for each completed year of
14 service or fraction thereof rendered after his attainment of
15 age 53 and the completion of 23 years of service.
16 Any policeman who has completed 23 years of service prior
17 to his attainment of age 53 in the service and continues in
18 the service until his attainment of age 53 shall have added
19 to his annuity, computed as provided in the immediately
20 preceding paragraph, an additional annuity equal to 1% of
21 such average salary for each completed year of service or
22 fraction thereof in excess of 23 years up to age 53.
23 (e) In lieu of the annuity provided in the foregoing
24 provisions of this Section, any policeman who withdraws from
25 the service either (i) after December 31, 1983 with at least
26 22 years of service credit and having attained age 52 in the
27 service, or (ii) after December 31, 1984 with at least 21
28 years of service credit and having attained age 51 in the
29 service, or (iii) after December 31, 1985 with at least 20
30 years of service credit and having attained age 50 in the
31 service, or (iv) after December 31, 1990, with at least 20
32 years of service credit regardless of age, shall be entitled
33 to an annuity to begin not earlier than upon attainment of
34 age 50 if under such age at withdrawal, computed as follows:
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1 an annuity equal to 50% of the average salary for the 4
2 highest consecutive years of the last 10 years of service,
3 plus additional annuity equal to 2% of such average salary
4 for each completed year of service or fraction thereof
5 rendered after his completion of the minimum number of years
6 of service required for him to be eligible under this
7 subsection (e). However, the annuity provided under this
8 subsection (e) may not exceed 75% of such average salary.
9 (f) A policeman withdrawing after September 1, 1969,
10 may, in addition, be entitled to the benefits provided by
11 Section 5-167.1 of this Article if he so qualifies under that
12 Section.
13 If, on withdrawal, total service is less than 20 years,
14 the policeman shall not be entitled to an annuity under this
15 Section but may receive an annuity under the other provisions
16 of this Article or, if entitled thereto under Section 5-163,
17 a refund of the deductions from salary, including, in the
18 case of policemen transferred to the police service of the
19 city under the Exchange of Functions Act of 1957, the
20 additional contribution paid on salary received from August
21 1, 1957, to July 17, 1959, as provided in the Park
22 Policemen's Annuity Act, together with interest at 1 1/2% per
23 annum.
24 Moneys voluntarily contributed under the Policemen's
25 Annuity and Benefit Fund Act of the Illinois Municipal Code,
26 or the Park Policemen's Annuity Act, shall be refunded to the
27 contributing policemen who were in service on January 1,
28 1954, or in the case of policemen transferred to the police
29 service of the city under the Exchange of Functions Act of
30 1957, who were in service on July 17, 1959.
31 The age and service annuity formula in this Section shall
32 not apply to any policeman who, having retired before July 8,
33 1957, or before July 17, 1959, in the case of a policeman
34 transferred under the provisions of the Exchange of Functions
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1 Act of 1957, re-enters the police service after such dates,
2 whichever are applicable.
3 (g) For the purpose of this Section, "average salary"
4 means:
5 (1) for a policeman withdrawing from service before
6 January 1, 1998, the average of the highest 4 consecutive
7 years of salary within the last 10 years of service;
8 (2) for a policeman withdrawing from service on or
9 after January 1, 1998, the average of the highest 36
10 consecutive months of salary within the last 10 years of
11 service.
12 (Source: P.A. 86-1488.)
13 Section 90. The State Mandates Act is amended by adding
14 Section 8.21 as follows:
15 (30 ILCS 805/8.21 new)
16 Sec. 8.21. Exempt mandate. Notwithstanding Sections 6
17 and 8 of this Act, no reimbursement by the State is required
18 for the implementation of any mandate created by this
19 amendatory Act of 1997.
20 Section 99. Effective date. This Act takes effect upon
21 becoming law.