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91_HB4134
LRB9112077EGfg
1 AN ACT to amend the Illinois Pension Code and the State
2 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 7-116, 7-152, 7-156, and 7-173.1 as
7 follows:
8 (40 ILCS 5/7-116) (from Ch. 108 1/2, par. 7-116)
9 Sec. 7-116. "Final rate of earnings":
10 (a) For retirement and survivor annuities, the monthly
11 earnings obtained by dividing the total earnings received by
12 the employee during the period of either (1) the 48
13 consecutive months of service within the last 120 months of
14 service in which his total earnings were the highest or (2)
15 the employee's total period of service, by the number of
16 months of service in such period.
17 (b) For death benefits, the higher of the rate
18 determined under paragraph (a) of this Section or total
19 earnings received in the last 12 months of service divided by
20 twelve. If the deceased employee has less than 12 months of
21 service, the monthly final rate shall be the monthly rate of
22 pay the employee was receiving when he began service.
23 (c) For disability benefits, the total earnings of a
24 participating employee in the last 12 calendar months of
25 service prior to the date he becomes disabled divided by 12.
26 (d) For persons who have at least 20 years of service
27 credit as a sheriff's law enforcement employee, the rate of
28 earnings on the last day of service in that capacity or the
29 rate determined under the other provisions of this Section,
30 whichever is greater.
31 (e) In computing the final rate of earnings: (1) the
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1 earnings rate for all periods of prior service shall be
2 considered equal to the average earnings rate for the last 3
3 calendar years of prior service for which creditable service
4 is received under Section 7-139 or, if there is less than 3
5 years of creditable prior service, the average for the total
6 prior service period for which creditable service is received
7 under Section 7-139; (2) for out of state service and
8 authorized leave, the earnings rate shall be the rate upon
9 which service credits are granted; (3) periods of military
10 leave shall not be considered; (4) the earnings rate for all
11 periods of disability shall be considered equal to the rate
12 of earnings upon which the employee's disability benefits are
13 computed for such periods; (5) the earnings to be considered
14 for each of the final three months of the final earnings
15 period shall not exceed 125% of the highest earnings of any
16 other month in the final earnings period; and (6) the annual
17 amount of final rate of earnings shall be the monthly amount
18 multiplied by the number of months of service normally
19 required by the position in a year.
20 (Source: P.A. 90-448, eff. 8-16-97.)
21 (40 ILCS 5/7-152) (from Ch. 108 1/2, par. 7-152)
22 Sec. 7-152. Disability benefits - Amount. The amount of
23 the monthly temporary and total and permanent disability
24 benefits shall be 50% of the participating employee's final
25 rate of earnings on the date disability was incurred, subject
26 to the following adjustments:
27 (a) If the participating employee has a reduced rate of
28 earnings at the time his employment ceases because of
29 disability, the rate of earnings shall be computed on the
30 basis of his last 12 month period of full-time employment.
31 (b) If the participating employee is eligible for a
32 disability benefit under the federal Social Security Act, the
33 amount of monthly disability benefits shall be reduced, but
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1 not to less than $10 a month, by the amount he would be
2 eligible to receive as a disability benefit under the federal
3 Social Security Act, whether or not because of service as a
4 covered employee under this Article. The reduction shall be
5 effective as of the month the employee is eligible for Social
6 Security disability benefits. The Board may make such
7 reduction if it appears that the employee may be so eligible
8 pending determination of eligibility and make an appropriate
9 adjustment if necessary after such determination. If the
10 employee, because of his refusal to accept rehabilitation
11 services under the Federal Rehabilitation Act of 1973 or the
12 federal Social Security Act, or because he is receiving
13 workers' compensation benefits, has his Social Security
14 benefits reduced or terminated, the disability benefit shall
15 be reduced as if the employee were receiving his full Social
16 Security disability benefit.
17 (c) If the employee is over age 65, was not eligible for
18 a Social Security benefit immediately before reaching age 65
19 and is eligible for a Social Security old-age insurance
20 benefit, the amount of the monthly disability benefit shall
21 be reduced, but not to less than $10 a month, by the amount
22 of the old-age insurance benefit to which the employee is
23 entitled whether or not the employee applies for the Social
24 Security old-age insurance benefit. This reduction shall be
25 made in the month after the month in which the employee
26 attains age 65. However, if the employee was receiving a
27 Social Security disability benefit before reaching age 65,
28 the disability benefits after age 65 shall be determined
29 under subsection (b) of this Section.
30 (d) The amount of disability benefits shall not be
31 reduced by reason of any increase, other than one resulting
32 from a correction in the employee's wage records, in the
33 amount of disability or old-age insurance benefits under the
34 federal Social Security Act which takes effect after the
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1 month of the initial reduction under paragraph (b) or (c) of
2 this Section.
3 (e) If the employee in any month receives compensation
4 from gainful employment which is more than 25% of the final
5 rate of earnings on which his disability benefits are based,
6 the temporary disability benefit payable for that month shall
7 be reduced by an amount equal to such excess.
8 (f) An employee who has been disabled for at least 30
9 days may return to work for the employer on a part-time basis
10 for a trial work period of up to one year, during which the
11 disability shall be deemed to continue. Service credit shall
12 continue to accrue and the disability benefit shall continue
13 to be paid during the trial work period, but the benefit
14 shall be reduced by the amount of earnings received by the
15 disabled employee. Return to service on a full-time basis
16 shall terminate the trial work period. The reduction under
17 this subsection (f) shall be in lieu of the reduction, if
18 any, required under subsection (e).
19 (g) Beginning January 1, 1988, every total and permanent
20 disability benefit shall be increased by 3% of the original
21 amount of the benefit, not compounded, on each January 1
22 following the later of (1) the date the total and permanent
23 disability benefit begins, or (2) the date the total and
24 permanent disability benefit would have begun if the employee
25 had been paid a temporary disability benefit for 30 months.
26 (h) Beginning January 1, 2001, the basic disability
27 benefit for a sheriff's law enforcement employee whose
28 disability is the result of sickness, accident, or injury
29 incurred in or resulting from the performance of an act of
30 duty shall be 65% of the employee's final rate of earnings on
31 the date the disability was incurred, rather than the 50%
32 otherwise provided under this Section. Sheriff's law
33 enforcement employees who are receiving a disability benefit
34 on that date for a disability that is the result of sickness,
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1 accident, or injury incurred in or resulting from the
2 performance of an act of duty shall have the benefit
3 increased accordingly. The Board shall establish by rule any
4 standards or procedures that it deems necessary or
5 appropriate for the determination of eligibility for the
6 benefit provided under this subsection.
7 (Source: P.A. 87-740.)
8 (40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156)
9 Sec. 7-156. Surviving spouse annuities - amount.
10 (a) The amount of surviving spouse annuity shall be:
11 1. Upon the death of an employee annuitant or such
12 person entitled, upon application, to a retirement annuity at
13 date of death, (i) an amount equal to 1/2 of the retirement
14 annuity (in the case of such a person who dies on or after
15 January 1, 2001 with at least 20 years of service as a
16 sheriff's law enforcement employee, 100% of the retirement
17 annuity) which was or would have been payable exclusive of
18 the amount so payable which was provided from additional
19 credits, and disregarding any election made under paragraph
20 (b) of Section 7-142, plus (ii) an annuity which could be
21 provided at the then attained age of the surviving spouse and
22 under actuarial tables then in effect, from the excess of the
23 additional credits, (excluding any such credits used to
24 create a reversionary annuity) used to provide the annuity
25 granted pursuant to paragraph (a) (2) of Section 7-142 of
26 this article over the total annuity payments made pursuant
27 thereto.
28 2. Upon the death of a participating employee on or
29 after attainment of age 55 (age 50 in the case of a sheriff's
30 law enforcement employee), an amount equal to 1/2 of the
31 retirement annuity (in the case of such a person who dies on
32 or after January 1, 2001 with at least 20 years of service as
33 a sheriff's law enforcement employee, 100% of the retirement
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1 annuity) which he could have had as of the date of death had
2 he then retired and applied for annuity, exclusive of the
3 portion thereof which could have been provided from
4 additional credits, and disregarding paragraph (b) of Section
5 7-142, plus an amount equal to the annuity which could be
6 provided from the total of his accumulated additional credits
7 at date of death, on the basis of the attained age of the
8 surviving spouse on such date.
9 3. Upon the death of a participating employee before age
10 55 (age 50 in the case of a sheriff's law enforcement
11 employee), an amount equal to 1/2 of the retirement annuity
12 (in the case of such a person who dies on or after January 1,
13 2001 with at least 20 years of service as a sheriff's law
14 enforcement employee, 100% of the retirement annuity) which
15 he could have had as of his attained age on the date of
16 death, had he then retired and applied for annuity, and the
17 provisions of this Article that no such annuity shall begin
18 until the employee has attained at least age 55 (age 50 in
19 the case of a sheriff's law enforcement employee) were not
20 applicable, exclusive of the portion thereof which could have
21 been provided from additional credits and disregarding
22 paragraph (b) of Section 7-142, plus an amount equal to the
23 annuity which could be provided from the total of his
24 accumulated additional credits at date of death, on the basis
25 of the attained age of the surviving spouse on such date.
26 If a surviving spouse is more than 5 years younger than
27 the deceased, that portion of the annuity which is not based
28 on additional credits shall be reduced in the ratio of the
29 value of a life annuity of $1 per year at an age of 5 years
30 less than the attained age of the deceased, at the earlier of
31 the date of the death or the date his retirement annuity
32 begins, to the value of a life annuity of $1 per year at the
33 attained age of the surviving spouse on such date, according
34 to actuarial tables approved by the Board. However, this
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1 reduction does not apply to the surviving spouse of a person
2 who dies on or after January 1, 2001 with at least 20 years
3 of service as a sheriff's law enforcement employee.
4 In computing the amount of a surviving spouse annuity,
5 incremental increases of retirement annuities to the date of
6 death of the employee annuitant shall be considered.
7 (b) Each surviving spouse annuity payable on January 1,
8 1988 shall be increased on that date by 3% of the original
9 amount of the annuity. Each surviving spouse annuity that
10 begins after January 1, 1988 shall be increased on the
11 January 1 next occurring after the annuity begins, by an
12 amount equal to (i) 3% of the original amount thereof if the
13 deceased employee was receiving a retirement annuity at the
14 time of his death; otherwise (ii) 0.167% of the original
15 amount thereof for each complete month which has elapsed
16 since the date the annuity began.
17 On each January 1 after the date of the initial increase
18 under this subsection, each surviving spouse annuity shall be
19 increased by 3% of the originally granted amount of the
20 annuity.
21 (Source: P.A. 85-941.)
22 (40 ILCS 5/7-173.1) (from Ch. 108 1/2, par. 7-173.1)
23 Sec. 7-173.1. Additional contribution by sheriff's law
24 enforcement employees.
25 (a) Each sheriff's law enforcement employee shall make
26 an additional contribution of 1% of earnings, which shall be
27 considered as normal contributions. For earnings on or after
28 July 1, 1988 and before January 1, 2001, the additional
29 contribution shall be 2% of earnings. For earnings on or
30 after January 1, 2001, the additional contribution shall be
31 4.5% of earnings.
32 This additional contribution shall be payable for
33 retroactive service periods which the employee elects to
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1 establish and to periods of authorized leave of absence.
2 (b) If the employee is awarded a retirement annuity
3 under Section 7-142 and not under Section 7-142.1, then the
4 additional contribution required under this Section shall be
5 refunded with interest or paid as provided in subsection (c).
6 If the employee returns to a participating status as a
7 sheriff's law enforcement employee, the employee may repay
8 the amount refunded with interest and upon subsequent
9 retirement be entitled to a recomputation of the retirement
10 annuity under Section 7-142.1 if the total service as a
11 sheriff's law enforcement employee meets the requirements of
12 that Section.
13 (c) Instead of a refund under subsection (b), the
14 retiring employee may elect to convert the amount of the
15 refund into an annuity, payable separately from the
16 retirement annuity. If the annuitant dies before the
17 guaranteed amount has been distributed, the remainder shall
18 be paid in a lump sum to the designated beneficiary of the
19 annuitant. The Board shall adopt any rules necessary for the
20 implementation of this subsection.
21 (Source: P.A. 90-766, eff. 8-14-98.)
22 Section 90. The State Mandates Act is amended by adding
23 Section 8.24 as follows:
24 (30 ILCS 805/8.24 new)
25 Sec. 8.24. Exempt mandate. Notwithstanding Sections 6
26 and 8 of this Act, no reimbursement by the State is required
27 for the implementation of any mandate created by this
28 amendatory Act of the 91st General Assembly.
29 Section 99. Effective date. This Act takes effect upon
30 becoming law.