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92_HB3796 LRB9209481EGfg 1 AN ACT in relation to public employee benefits. 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 Section 14-108 as follows: 6 (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108) 7 Sec. 14-108. Amount of retirement annuity. A member who 8 has contributed to the System for at least 12 months shall be 9 entitled to a prior service annuity for each year of 10 certified prior service credited to him, except that a member 11 shall receive 1/3 of the prior service annuity for each year 12 of service for which contributions have been made and all of 13 such annuity shall be payable after the member has made 14 contributions for a period of 3 years. Proportionate amounts 15 shall be payable for service of less than a full year after 16 completion of at least 12 months. 17 The total period of service to be considered in 18 establishing the measure of prior service annuity shall 19 include service credited in the Teachers' Retirement System 20 of the State of Illinois and the State Universities 21 Retirement System for which contributions have been made by 22 the member to such systems; provided that at least 1 year of 23 the total period of 3 years prescribed for the allowance of a 24 full measure of prior service annuity shall consist of 25 membership service in this system for which credit has been 26 granted. 27 (a) In the case of a member who retires on or after 28 January 1, 1998 and is a noncovered employee, the retirement 29 annuity for membership service and prior service shall be 30 2.2% of final average compensation for each year of service. 31 Any service credit established as a covered employee shall be -2- LRB9209481EGfg 1 computed as stated in paragraph (b). 2 (b) In the case of a member who retires on or after 3 January 1, 1998 and is a covered employee, the retirement 4 annuity for membership service and prior service shall be 5 computed as stated in paragraph (a) for all service credit 6 established as a noncovered employee; for service credit 7 established as a covered employee it shall be 1.67% of final 8 average compensation for each year of service. 9 (c) For a member retiring after attaining age 55 but 10 before age 60 with at least 30 but less than 35 years of 11 creditable service if retirement is before January 1, 2001, 12 or with at least 25 but less than 30 years of creditable 13 service if retirement is on or after January 1, 2001, the 14 retirement annuity shall be reduced by 1/2 of 1% for each 15 month that the member's age is under age 60 at the time of 16 retirement. 17 (d) A retirement annuity shall not exceed 75% of final 18 average compensation, subject to such extension as may result 19 from the application of Section 14-114 or Section 14-115. 20 (e) The retirement annuity payable to any covered 21 employee who is a member of the System and in service on 22 January 1, 1969, or in service thereafter in 1969 as a result 23 of legislation enacted by the Illinois General Assembly 24 transferring the member to State employment from county 25 employment in a county Department of Public Aid in counties 26 of 3,000,000 or more population, under a plan of coordination 27 with the Old Age, Survivors and Disability provisions 28 thereof, if not fully insured for Old Age Insurance payments 29 under the Federal Old Age, Survivors and Disability Insurance 30 provisions at the date of acceptance of a retirement annuity, 31 shall not be less than the amount for which the member would 32 have been eligible if coordination were not applicable. 33 (f) The retirement annuity payable to any covered 34 employee who is a member of the System and in service on -3- LRB9209481EGfg 1 January 1, 1969, or in service thereafter in 1969 as a result 2 of the legislation designated in the immediately preceding 3 paragraph, if fully insured for Old Age Insurance payments 4 under the Federal Social Security Act at the date of 5 acceptance of a retirement annuity, shall not be less than an 6 amount which when added to the Primary Insurance Benefit 7 payable to the member upon attainment of age 65 under such 8 Federal Act, will equal the annuity which would otherwise be 9 payable if the coordinated plan of coverage were not 10 applicable. 11 (g) In the case of a member who is a noncovered 12 employee, the retirement annuity for eligible creditable 13membershipservice as defined in Section 14-110a security14employee of the Department of Corrections or security15employee of the Department of Human Servicesshall be: if 16 retirement occurs on or after January 1, 2001, 3% of final 17 average compensation for each year of creditable service; or 18 if retirement occurs before January 1, 2001, 1.9% of final 19 average compensation for each of the first 10 years of 20 service, 2.1% for each of the next 10 years of service, 2.25% 21 for each year of service in excess of 20 but not exceeding 22 30, and 2.5% for each year in excess of 30; except that the 23 annuity may be calculated under subsection (a) rather than 24 this subsection (g) if the resulting annuity is greater. 25 (h) In the case of a member who is a covered employee, 26 the retirement annuity for eligible creditablemembership27 service as defined in Section 14-110a security employee of28the Department of Corrections or security employee of the29Department of Human Servicesshall be: if retirement occurs 30 on or after January 1, 2001, 2.5% of final average 31 compensation for each year of creditable service; or if 32 retirement occurs before January 1, 2001, 1.67% of final 33 average compensation for each of the first 10 years of 34 service, 1.90% for each of the next 10 years of service, -4- LRB9209481EGfg 1 2.10% for each year of service in excess of 20 but not 2 exceeding 30, and 2.30% for each year in excess of 30. 3 (i) (Blank).For the purposes of this Section and4Section 14-133 of this Act, the term "security employee of5the Department of Corrections" and the term "security6employee of the Department of Human Services" shall have the7meanings ascribed to them in subsection (c) of Section814-110.9 (j) The retirement annuity computed pursuant to 10 paragraphs (g) or (h) shall be applicable only tothose11securityemployeesof the Department of Corrections and12security employees of the Department of Human Serviceswho 13 have at least 20 years of membership service andwhoare not 14 eligible for the alternative retirement annuity provided 15 under Section 14-110. However, persons transferring to this 16 System under Section 14-108.2 or 14-108.2c who have service 17 credit under Article 16 of this Code may count such service 18 toward establishing their eligibility under the 20-year 19 service requirement of this subsection; but such service may 20 be used only for establishing such eligibility, and not for 21 the purpose of increasing or calculating any benefit. 22 (k) (Blank). 23 (l) The changes to this Section made by this amendatory 24 Act of 1997 (changing certain retirement annuity formulas 25 from a stepped rate to a flat rate) apply to members who 26 retire on or after January 1, 1998, without regard to whether 27 employment terminated before the effective date of this 28 amendatory Act of 1997. An annuity shall not be calculated 29 in steps by using the new flat rate for some steps and the 30 superseded stepped rate for other steps of the same type of 31 service. 32 (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01) 33 Section 99. Effective date. This Act takes effect upon -5- LRB9209481EGfg 1 becoming law.