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91_SB0296
LRB9101878EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 15-136, 15-136.3, and 15-145.
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 15-136, 15-136.3, and 15-145 as follows:
7 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
8 Sec. 15-136. Retirement annuities - Amount. The
9 provisions of this Section 15-136 apply only to those
10 participants who are participating in the traditional benefit
11 package or the portable benefit package and do not apply to
12 participants who are participating in the self-managed plan.
13 (a) The amount of a participant's retirement annuity,
14 expressed in the form of a single-life annuity, shall be
15 determined by whichever of the following rules is applicable
16 and provides the largest annuity:
17 Rule 1: The retirement annuity shall be 1.67% of final
18 rate of earnings for each of the first 10 years of service,
19 1.90% for each of the next 10 years of service, 2.10% for
20 each year of service in excess of 20 but not exceeding 30,
21 and 2.30% for each year in excess of 30; or for persons who
22 retire on or after January 1, 1998, 2.2% of the final rate of
23 earnings for each year of service.
24 Rule 2: The retirement annuity shall be the sum of the
25 following, determined from amounts credited to the
26 participant in accordance with the actuarial tables and the
27 prescribed rate of interest in effect at the time the
28 retirement annuity begins:
29 (i) the normal annuity which can be provided on an
30 actuarially equivalent basis, by the accumulated normal
31 contributions as of the date the annuity begins; and
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1 (ii) an annuity from employer contributions of an
2 amount which can be provided on an actuarially equivalent
3 basis from the accumulated normal contributions made by
4 the participant under Section 15-113.6 and Section
5 15-113.7 plus 1.4 times all other accumulated normal
6 contributions made by the participant.
7 With respect to a police officer or firefighter who retires
8 on or after the effective date of this amendatory Act of
9 1998, the accumulated normal contributions taken into account
10 under clauses (i) and (ii) of this Rule 2 shall include the
11 additional normal contributions made by the police officer or
12 firefighter under Section 15-157(a).
13 Rule 3: The retirement annuity of a participant who is
14 employed at least one-half time during the period on which
15 his or her final rate of earnings is based, shall be equal to
16 the participant's years of service not to exceed 30,
17 multiplied by (1) $96 if the participant's final rate of
18 earnings is less than $3,500, (2) $108 if the final rate of
19 earnings is at least $3,500 but less than $4,500, (3) $120 if
20 the final rate of earnings is at least $4,500 but less than
21 $5,500, (4) $132 if the final rate of earnings is at least
22 $5,500 but less than $6,500, (5) $144 if the final rate of
23 earnings is at least $6,500 but less than $7,500, (6) $156 if
24 the final rate of earnings is at least $7,500 but less than
25 $8,500, (7) $168 if the final rate of earnings is at least
26 $8,500 but less than $9,500, and (8) $180 if the final rate
27 of earnings is $9,500 or more, except that the annuity for
28 those persons having made an election under Section
29 15-154(a-1) shall be calculated and payable under the
30 portable retirement benefit program pursuant to the
31 provisions of Section 15-136.4.
32 Rule 4: A participant who is at least age 50 and has 25
33 or more years of service as a police officer or firefighter,
34 and a participant who is age 55 or over and has at least 20
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1 but less than 25 years of service as a police officer or
2 firefighter, shall be entitled to a retirement annuity of
3 2 1/4% of the final rate of earnings for each of the first 10
4 years of service as a police officer or firefighter, 2 1/2%
5 for each of the next 10 years of service as a police officer
6 or firefighter, and 2 3/4% for each year of service as a
7 police officer or firefighter in excess of 20. The
8 retirement annuity for all other service shall be computed
9 under Rule 1.
10 For purposes of this Rule 4, a participant's service as a
11 firefighter shall also include the following:
12 (i) service that is performed while the person is
13 an employee under subsection (h) of Section 15-107; and
14 (ii) in the case of an individual who was a
15 participating employee employed in the fire department of
16 the University of Illinois's Champaign-Urbana campus
17 immediately prior to the elimination of that fire
18 department and who immediately after the elimination of
19 that fire department transferred to another job with the
20 University of Illinois, service performed as an employee
21 of the University of Illinois in a position other than
22 police officer or firefighter, from the date of that
23 transfer until the employee's next termination of service
24 with the University of Illinois.
25 (b) The retirement annuity provided under Rules 1 and 3
26 above shall be reduced by 1/2 of 1% for each month the
27 participant is under age 60 at the time of retirement.
28 However, this reduction shall not apply in the following
29 cases:
30 (1) For a disabled participant whose disability
31 benefits have been discontinued because he or she has
32 exhausted eligibility for disability benefits under
33 clause (6) of Section 15-152;
34 (2) For a participant who has at least the number
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1 of years of service required to retire at any age under
2 subsection (a) of Section 15-135; or
3 (3) For that portion of a retirement annuity which
4 has been provided on account of service of the
5 participant during periods when he or she performed the
6 duties of a police officer or firefighter, if these
7 duties were performed for at least 5 years immediately
8 preceding the date the retirement annuity is to begin.
9 (c) The maximum retirement annuity provided under Rules
10 1, 2, and 4 shall be the lesser of (1) the annual limit of
11 benefits as specified in Section 415 of the Internal Revenue
12 Code of 1986, as such Section may be amended from time to
13 time and as such benefit limits shall be adjusted by the
14 Commissioner of Internal Revenue, and (2) 80% of final rate
15 of earnings.
16 (d) An annuitant whose status as an employee terminates
17 after August 14, 1969 shall receive automatic increases in
18 his or her retirement annuity as follows:
19 Effective January 1 immediately following the date the
20 retirement annuity begins, the annuitant shall receive an
21 increase in his or her monthly retirement annuity of 0.125%
22 of the monthly retirement annuity provided under Rule 1, Rule
23 2, Rule 3, or Rule 4, contained in this Section, multiplied
24 by the number of full months which elapsed from the date the
25 retirement annuity payments began to January 1, 1972, plus
26 0.1667% of such annuity, multiplied by the number of full
27 months which elapsed from January 1, 1972, or the date the
28 retirement annuity payments began, whichever is later, to
29 January 1, 1978, plus 0.25% of such annuity multiplied by the
30 number of full months which elapsed from January 1, 1978, or
31 the date the retirement annuity payments began, whichever is
32 later, to the effective date of the increase.
33 The annuitant shall receive an increase in his or her
34 monthly retirement annuity on each January 1 thereafter
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1 during the annuitant's life of 3% of the monthly annuity
2 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
3 this Section. The change made under this subsection by P.A.
4 81-970 is effective January 1, 1980 and applies to each
5 annuitant whose status as an employee terminates before or
6 after that date.
7 Beginning January 1, 1990, all automatic annual increases
8 payable under this Section shall be calculated as a
9 percentage of the total annuity payable at the time of the
10 increase, including all increases previously granted under
11 this Article.
12 The change made in this subsection by P.A. 85-1008 is
13 effective January 26, 1988, and is applicable without regard
14 to whether status as an employee terminated before that date.
15 (e) If, on January 1, 1987, or the date the retirement
16 annuity payment period begins, whichever is later, the sum of
17 the retirement annuity provided under Rule 1 or Rule 2 of
18 this Section and the automatic annual increases provided
19 under the preceding subsection or Section 15-136.1, amounts
20 to less than the retirement annuity which would be provided
21 by Rule 3, the retirement annuity shall be increased as of
22 January 1, 1987, or the date the retirement annuity payment
23 period begins, whichever is later, to the amount which would
24 be provided by Rule 3 of this Section. Such increased amount
25 shall be considered as the retirement annuity in determining
26 benefits provided under other Sections of this Article. This
27 paragraph applies without regard to whether status as an
28 employee terminated before the effective date of this
29 amendatory Act of 1987, provided that the annuitant was
30 employed at least one-half time during the period on which
31 the final rate of earnings was based.
32 (f) A participant is entitled to such additional annuity
33 as may be provided on an actuarially equivalent basis, by any
34 accumulated additional contributions to his or her credit.
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1 However, the additional contributions made by the participant
2 toward the automatic increases in annuity provided under this
3 Section shall not be taken into account in determining the
4 amount of such additional annuity.
5 (g) If, (1) by law, a function of a governmental unit,
6 as defined by Section 20-107 of this Code, is transferred in
7 whole or in part to an employer, and (2) a participant
8 transfers employment from such governmental unit to such
9 employer within 6 months after the transfer of the function,
10 and (3) the sum of (A) the annuity payable to the participant
11 under Rule 1, 2, or 3 of this Section (B) all proportional
12 annuities payable to the participant by all other retirement
13 systems covered by Article 20, and (C) the initial primary
14 insurance amount to which the participant is entitled under
15 the Social Security Act, is less than the retirement annuity
16 which would have been payable if all of the participant's
17 pension credits validated under Section 20-109 had been
18 validated under this system, a supplemental annuity equal to
19 the difference in such amounts shall be payable to the
20 participant.
21 (h) On January 1, 1981, an annuitant who was receiving a
22 retirement annuity on or before January 1, 1971 shall have
23 his or her retirement annuity then being paid increased $1
24 per month for each year of creditable service. On January 1,
25 1982, an annuitant whose retirement annuity began on or
26 before January 1, 1977, shall have his or her retirement
27 annuity then being paid increased $1 per month for each year
28 of creditable service.
29 (i) On January 1, 1987, any annuitant whose retirement
30 annuity began on or before January 1, 1977, shall have the
31 monthly retirement annuity increased by an amount equal to 8¢
32 per year of creditable service times the number of years that
33 have elapsed since the annuity began.
34 (j) On January 1, 2000, every annuitant who began
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1 receiving a retirement annuity before January 1, 1980 shall
2 have the monthly retirement annuity increased by whichever of
3 the following percentages is applicable:
4 5% if the annuity began in 1979;
5 10% if the annuity began in 1978;
6 14% if the annuity began in 1977;
7 14% if the annuity began in 1976;
8 18% if the annuity began in 1975;
9 23% if the annuity began in 1974;
10 32% if the annuity began in 1973 or before.
11 The increase under this subsection shall be calculated as
12 a percentage of the amount of the retirement annuity payable
13 on December 31, 1999, including any increases previously
14 received under this Article, and shall be included in the
15 calculation of increases granted on January 1, 2000 or
16 thereafter under subsection (d).
17 (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
18 eff. 8-16-97; 90-576, eff. 3-31-98; 90-655, eff. 7-30-98;
19 90-766, eff. 8-14-98.)
20 (40 ILCS 5/15-136.3)
21 Sec. 15-136.3. Minimum retirement annuity.
22 (a) Beginning January 1, 1997, any person who is
23 receiving a monthly retirement annuity under this Article
24 which, after inclusion of (1) all one-time and automatic
25 annual increases to which the person is entitled, (2) any
26 supplemental annuity payable under Section 15-136.1, and (3)
27 any amount deducted under Section 15-138 or 15-140 to provide
28 a reversionary annuity, is less than the minimum monthly
29 retirement benefit amount specified in subsection (b) of this
30 Section, shall be entitled to a monthly supplemental payment
31 equal to the difference.
32 (b) For purposes of the calculation in subsection (a),
33 the minimum monthly retirement benefit amount is the sum of
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1 $25 for each year of service credit, up to a maximum of 30
2 years of service, plus the amount of the increase received by
3 the annuitant under subsection (j) of Section 15-136, if any.
4 (c) This Section applies to all persons receiving a
5 retirement annuity under this Article, without regard to
6 whether or not employment terminated prior to the effective
7 date of this Section.
8 (Source: P.A. 89-616, eff. 8-9-96.)
9 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
10 Sec. 15-145. Survivors insurance benefits; conditions
11 and amounts.
12 (a) The survivors insurance benefits provided under this
13 Section shall be payable to the eligible survivors of a
14 participant covered under the traditional benefit package
15 upon the death of (1) a participating employee with at least
16 1 1/2 years of service, (2) a participant who terminated
17 employment with at least 10 years of service, and (3) an
18 annuitant in receipt of a retirement annuity or disability
19 retirement annuity under this Article.
20 Service under the State Employees' Retirement System of
21 Illinois, the Teachers' Retirement System of the State of
22 Illinois and the Public School Teachers' Pension and
23 Retirement Fund of Chicago shall be considered in determining
24 eligibility for survivors benefits under this Section.
25 If by law, a function of a governmental unit, as defined
26 by Section 20-107, is transferred in whole or in part to an
27 employer, and an employee transfers employment from this
28 governmental unit to such employer within 6 months after the
29 transfer of this function, the service credits in the
30 governmental unit's retirement system which have been
31 validated under Section 20-109 shall be considered in
32 determining eligibility for survivors benefits under this
33 Section.
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1 (b) A surviving spouse of a deceased participant, or of
2 a deceased annuitant who had a survivors insurance
3 beneficiary at the time of retirement, shall receive a
4 survivors annuity of 30% of the final rate of earnings.
5 Payments shall begin on the day following the participant's
6 or annuitant's death or the date the surviving spouse attains
7 age 50, whichever is later, and continue until the death of
8 the surviving spouse. The annuity shall be payable to the
9 surviving spouse prior to attainment of age 50 if the
10 surviving spouse has in his or her care a deceased
11 participant's or annuitant's dependent unmarried child under
12 age 18 (under age 22 if a full-time student) who is eligible
13 for a survivors annuity. Remarriage of a surviving spouse
14 prior to attainment of age 55 shall disqualify him or her for
15 the receipt of a survivors annuity.
16 (c) Each dependent unmarried child under age 18 (under
17 age 22 if a full-time student) of a deceased participant, or
18 of a deceased annuitant who had a survivors insurance
19 beneficiary at the time of his or her retirement, shall
20 receive a survivors annuity equal to the sum of (1) 20% of
21 the final rate of earnings, and (2) 10% of the final rate of
22 earnings divided by the number of children entitled to this
23 benefit. Payments shall begin on the day following the
24 participant's or annuitant's death and continue until the
25 child marries, dies, or attains age 18 (age 22 if a full-time
26 student). If the child is in the care of a surviving spouse
27 who is eligible for survivors insurance benefits, the child's
28 benefit shall be paid to the surviving spouse.
29 Each unmarried child over age 18 of a deceased
30 participant or of a deceased annuitant who had a survivor's
31 insurance beneficiary at the time of his or her retirement,
32 and who was dependent upon the participant or annuitant by
33 reason of a physical or mental disability which began prior
34 to the date the child attained age 18 (age 22 if a full-time
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1 student), shall receive a survivor's annuity equal to the sum
2 of (1) 20% of the final rate of earnings, and (2) 10% of the
3 final rate of earnings divided by the number of children
4 entitled to survivors benefits. Payments shall begin on the
5 day following the participant's or annuitant's death and
6 continue until the child marries, dies, or is no longer
7 disabled. If the child is in the care of a surviving spouse
8 who is eligible for survivors insurance benefits, the child's
9 benefit may be paid to the surviving spouse. For the
10 purposes of this Section, disability means inability to
11 engage in any substantial gainful activity by reason of any
12 medically determinable physical or mental impairment that can
13 be expected to result in death or that has lasted or can be
14 expected to last for a continuous period of at least one
15 year.
16 (d) Each dependent parent of a deceased participant, or
17 of a deceased annuitant who had a survivors insurance
18 beneficiary at the time of his or her retirement, shall
19 receive a survivors annuity equal to the sum of (1) 20% of
20 final rate of earnings, and (2) 10% of final rate of earnings
21 divided by the number of parents who qualify for the benefit.
22 Payments shall begin when the parent reaches age 55 or the
23 day following the participant's or annuitant's death,
24 whichever is later, and continue until the parent dies.
25 Remarriage of a parent prior to attainment of age 55 shall
26 disqualify the parent for the receipt of a survivors annuity.
27 (e) In addition to the survivors annuity provided above,
28 each survivors insurance beneficiary shall, upon death of the
29 participant or annuitant, receive a lump sum payment of
30 $1,000 divided by the number of such beneficiaries.
31 (f) The changes made in this Section by Public Act
32 81-712 pertaining to survivors annuities in cases of
33 remarriage prior to age 55 shall apply to each survivors
34 insurance beneficiary who remarries after June 30, 1979,
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1 regardless of the date that the participant or annuitant
2 terminated his employment or died.
3 (g) On January 1, 1981, any person who was receiving a
4 survivors annuity on or before January 1, 1971 shall have the
5 survivors annuity then being paid increased by 1% for each
6 full year which has elapsed from the date the annuity began.
7 On January 1, 1982, any survivor whose annuity began after
8 January 1, 1971, but before January 1, 1981, shall have the
9 survivor's annuity then being paid increased by 1% for each
10 year which has elapsed from the date the survivor's annuity
11 began. On January 1, 1987, any survivor who began receiving a
12 survivor's annuity on or before January 1, 1977, shall have
13 the monthly survivor's annuity increased by $1 for each full
14 year which has elapsed since the date the survivor's annuity
15 began.
16 (g-1) On January 1, 2000, every recipient of a
17 survivor's annuity whose original annuity began before
18 January 1, 1980 shall have the monthly survivor's annuity
19 increased by whichever of the following percentages is
20 applicable:
21 5% if the original annuity began in 1979;
22 10% if the original annuity began in 1978;
23 14% if the original annuity began in 1977;
24 14% if the original annuity began in 1976;
25 18% if the original annuity began in 1975;
26 23% if the original annuity began in 1974;
27 32% if the original annuity began in 1973 or before.
28 In the case of the survivor of a deceased annuitant who
29 died while receiving a retirement annuity, "original annuity"
30 means the deceased annuitant's retirement annuity; in all
31 other cases, "original annuity" means the survivor's annuity.
32 The increase under this subsection shall be calculated as
33 a percentage of the amount of the survivor's annuity payable
34 on December 31, 1999, including any increases previously
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1 received under this Article, and shall be included in the
2 calculation of increases granted on January 1, 2000 or
3 thereafter under subsection (j).
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 (l) The changes made to this Section and Section 15-131
8 by this amendatory Act of 1997, relating to benefits for
9 certain unmarried children who are full-time students under
10 age 22, apply without regard to whether the deceased member
11 was in service on or after the effective date of this
12 amendatory Act of 1997. These changes do not authorize the
13 repayment of a refund or a re-election of benefits, and any
14 benefit or increase in benefits resulting from these changes
15 is not payable retroactively for any period before the
16 effective date of this amendatory Act of 1997.
17 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
18 Section 99. Effective date. This Act takes effect upon
19 becoming law.