State of Illinois
92nd General Assembly
Legislation

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92_HB6021

 
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 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 7-142 as follows:

 6        (40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
 7        Sec. 7-142.  Retirement annuities - Amount.
 8        (a)  The  amount of a retirement annuity shall be the sum
 9    of the following, determined in accordance with the actuarial
10    tables in effect at the time of the grant of the annuity:
11             1.  For employees with 8 or more years  of  service,
12        an  annuity  computed pursuant to subparagraphs a or b of
13        this subparagraph 1, whichever is  the  higher,  and  for
14        employees  with  less than 8 years of service the annuity
15        computed pursuant to subparagraph a:
16                  a.  The monthly annuity which can  be  provided
17             from  the total accumulated normal, municipality and
18             prior service credits, as of the attained age of the
19             employee on the date  the  annuity  begins  provided
20             that  such annuity shall not exceed 75% of the final
21             rate of earnings of the employee.
22                  b.  (i) The monthly annuity  amount  determined
23             as  follows by multiplying (a) 1 2/3% for annuitants
24             with not more than 15 years or (b) 1  2/3%  for  the
25             first  15 years and 2% for each year in excess of 15
26             years for annuitants with more than 15 years by  the
27             number of years plus fractional years, prorated on a
28             basis  of months, of creditable service and multiply
29             the product thereof by the employee's final rate  of
30             earnings.
31                  (ii)  For  the  sole  purpose  of computing the
 
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 1             formula (and not for the purposes of the limitations
 2             hereinafter stated) $125  shall  be  considered  the
 3             final  rate of earnings in all cases where the final
 4             rate of earnings is less than such amount.
 5                  (iii)  The   monthly   annuity   computed    in
 6             accordance  with  this  subparagraph  b,  shall  not
 7             exceed  an  amount equal to 75% of the final rate of
 8             earnings.
 9                  (iv)  For employees who have less than 35 years
10             of service, the annuity computed in accordance  with
11             this  subparagraph  b  (as reduced by application of
12             subparagraph (iii) above) shall be reduced by  0.25%
13             thereof  (0.5%  if  service  was  terminated  before
14             January  1, 1988) for each month or fraction thereof
15             (1) that the employee's age is less than  60  years,
16             or  (2)  if  the  employee  has at least 30 years of
17             service credit, that the employee's  service  credit
18             is  less  than  35  years, whichever is less, on the
19             date the annuity begins.  The reduction  under  this
20             item  (iv) does not apply to a person who retires on
21             or after the effective date of this  amendatory  Act
22             of  the 92nd General Assembly with at least 15 years
23             of creditable service in the position  of  Assistant
24             State's Attorney.
25             2.  The annuity which can be provided from the total
26        accumulated  additional credits as of the attained age of
27        the employee on the date the annuity begins.
28        (b)  If  payment  of  an  annuity  begins  prior  to  the
29    earliest age at which the employee will become  eligible  for
30    an  old  age  insurance  benefit  under  the  Federal  Social
31    Security  Act,  he  may  elect that the annuity payments from
32    this fund shall exceed those payable after his attaining such
33    age by an amount, computed as  determined  by  rules  of  the
34    Board,  but  not  in  excess of his estimated Social Security
 
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 1    Benefit, determined as of the effective date of the  annuity,
 2    provided  that  in  no  case shall the total annuity payments
 3    made by this fund exceed in actuarial value the annuity which
 4    would have been payable had no such election been made.
 5        (c)  The retirement annuity shall be increased each  year
 6    by  2%,  not  compounded,  of  the monthly amount of annuity,
 7    taking into consideration any adjustment under paragraph  (b)
 8    of  this  Section.  This  increase  shall  be  effective each
 9    January 1  and  computed  from  the  effective  date  of  the
10    retirement  annuity,  the  first  increase being .167% of the
11    monthly amount times the number of months from the  effective
12    date  to January 1. Beginning January 1, 1984 and thereafter,
13    the retirement annuity shall be increased by  3%  each  year,
14    not  compounded.  This  increase  shall  not be applicable to
15    annuitants who are not in service on or  after  September  8,
16    1971.
17    (Source: P.A. 91-357, eff. 7-29-99.)

18        Section  90.  The State Mandates Act is amended by adding
19    Section 8.26 as follows:

20        (30 ILCS 805/8.26 new)
21        Sec. 8.26. Exempt mandate.   Notwithstanding  Sections  6
22    and  8 of this Act, no reimbursement by the State is required
23    for  the  implementation  of  any  mandate  created  by  this
24    amendatory Act of the 92nd General Assembly.

25        Section 99. Effective date.  This Act takes  effect  upon
26    becoming law.

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