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90_SB0905
40 ILCS 5/14-114 from Ch. 108 1/2, par. 14-114
Amends the State Employee Article of the Pension Code.
Provides a one-time increase in retirement annuities for all
annuitants. Effective immediately.
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1 AN ACT to amend the Illinois Pension Code by changing
2 Section 14-114.
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 14-114 as follows:
7 (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
8 Sec. 14-114. Automatic increase in retirement annuity.
9 (a) Any person receiving a retirement annuity under this
10 Article who retires having attained age 60, or who retires
11 before age 60 having at least 35 years of creditable service,
12 shall on January 1, next following the first full year of
13 retirement, have the amount of the then fixed and payable
14 monthly retirement annuity increased 3%. Any person
15 receiving a retirement annuity under this Article who retires
16 before attainment of age 60 and with less than 35 years of
17 creditable service shall have the amount of the fixed and
18 payable retirement annuity increased by 3% on the January 1
19 occurring on or next following (1) attainment of age 60, or
20 (2) the first anniversary of retirement, whichever occurs
21 later. However, for persons who receive the alternative
22 retirement annuity under Section 14-110, references in this
23 subsection (a) to attainment of age 60 shall be deemed to
24 refer to attainment of age 55. For a person receiving early
25 retirement incentives under Section 14-108.3 whose retirement
26 annuity began after January 1, 1992 pursuant to an extension
27 granted under subsection (e) of that Section, the first
28 anniversary of retirement shall be deemed to be January 1,
29 1993.
30 On each January 1 following the date of the initial
31 increase under this subsection, the employee's monthly
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1 retirement annuity shall be increased by an additional 3%.
2 Beginning January 1, 1990, all automatic annual increases
3 payable under this Section shall be calculated as a
4 percentage of the total annuity payable at the time of the
5 increase, including previous increases granted under this
6 Article.
7 (b) The provisions of subsection (a) of this Section
8 shall be applicable to an employee only if the employee makes
9 the additional contributions required after December 31, 1969
10 for the purpose of the automatic increases for not less than
11 the equivalent of one full year. If an employee becomes an
12 annuitant before his additional contributions equal one full
13 year's contributions based on his salary at the date of
14 retirement, the employee may pay the necessary balance of the
15 contributions to the system, without interest, and be
16 eligible for the increasing annuity authorized by this
17 Section.
18 (c) The provisions of subsection (a) of this Section
19 shall not be applicable to any annuitant who is on retirement
20 on December 31, 1969, and thereafter returns to State
21 service, unless the member has established at least one year
22 of additional creditable service following reentry into
23 service.
24 (d) In addition to other increases which may be provided
25 by this Section, on January 1, 1981 any annuitant who was
26 receiving a retirement annuity on or before January 1, 1971
27 shall have his retirement annuity then being paid increased
28 $1 per month for each year of creditable service. On January
29 1, 1982, any annuitant who began receiving a retirement
30 annuity on or before January 1, 1977, shall have his
31 retirement annuity then being paid increased $1 per month for
32 each year of creditable service.
33 On January 1, 1987, any annuitant who began receiving a
34 retirement annuity on or before January 1, 1977, shall have
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1 the monthly retirement annuity increased by an amount equal
2 to 8¢ per year of creditable service times the number of
3 years that have elapsed since the annuity began.
4 In addition to any other increases that may be provided
5 under this Article, on January 1, 1998 every person who is
6 then receiving a retirement annuity under this Article shall
7 have the monthly retirement annuity increased by 3% of the
8 amount otherwise payable plus an additional 0.5% for each
9 full year beyond the sixth year that has elapsed since the
10 annuity began.
11 (e) Every person who receives the alternative retirement
12 annuity under Section 14-110 and who is eligible to receive
13 the 3% increase under subsection (a) on January 1, 1986,
14 shall also receive on that date a one-time increase in
15 retirement annuity equal to the difference between (1) his
16 actual retirement annuity on that date, including any
17 increases received under subsection (a), and (2) the amount
18 of retirement annuity he would have received on that date if
19 the amendments to subsection (a) made by Public Act 84-162
20 had been in effect since the date of his retirement.
21 (Source: P.A. 86-273; 87-1265.)
22 Section 99. Effective date. This Act takes effect upon
23 becoming law.