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[ Conference Committee Report 001 ] |
92_SB0314enr SB314 Enrolled LRB9207506EGfg 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 Sections 8-137, 8-138, 11-134, and 11-134.1 as 6 follows: 7 (40 ILCS 5/8-137) (from Ch. 108 1/2, par. 8-137) 8 Sec. 8-137. Automatic increase in annuity. 9 (a) An employee who retired or retires from service 10 after December 31, 1959 and before January 1, 1987, having 11 attained age 60 or more, shall, in January of the year after 12 the year in which the first anniversary of retirement occurs, 13 have the amount of his then fixed and payable monthly annuity 14 increased by 1 1/2%, and such first fixed annuity as granted 15 at retirement increased by a further 1 1/2% in January of 16 each year thereafter. Beginning with January of the year 17 1972, such increases shall be at the rate of 2% in lieu of 18 the aforesaid specified 1 1/2%, and beginning with January of 19 the year 1984 such increases shall be at the rate of 3%. 20 Beginning in January of 1999, such increases shall be at the 21 rate of 3% of the currently payable monthly annuity, 22 including any increases previously granted under this 23 Article. An employee who retires on annuity after December 24 31, 1959 and before January 1, 1987, but before age 60, shall 25 receive such increases beginning in January of the year after 26 the year in which he attains age 60. 27 An employee who retires from service on or after January 28 1, 1987 shall, upon the first annuity payment date following 29 the first anniversary of the date of retirement, or upon the 30 first annuity payment date following attainment of age 60, 31 whichever occurs later, have his then fixed and payable SB314 Enrolled -2- LRB9207506EGfg 1 monthly annuity increased by 3%, and such annuity shall be 2 increased by an additional 3% of the original fixed annuity 3 on the same date each year thereafter. Beginning in January 4 of 1999, such increases shall be at the rate of 3% of the 5 currently payable monthly annuity, including any increases 6 previously granted under this Article. 7 (a-5) Notwithstanding the provisions of subsection (a), 8 upon the first annuity payment date following (1) the third 9 anniversary of retirement, (2) the attainment of age 53, or 10 (3) January 1, 2002, whichever occurs latest, the monthly 11 annuity of an employee who retires on annuity prior to the 12 attainment of age 60 and has not received an increase under 13 subsection (a) shall be increased by 3%, and the annuity 14 shall be increased by an additional 3% of the current payable 15 monthly annuity, including any increases previously granted 16 under this Article, on the same date each year thereafter. 17 The increases provided under this subsection are in lieu of 18 the increases provided in subsection (a). 19 (b) Subsections (a) and (a-5) areThe foregoing20provision isnot applicable to an employee retiring and 21 receiving a term annuity, as herein defined, nor to any 22 otherwise qualified employee who retires before he makes 23 employee contributions (at the 1/2 of 1% rate as provided in 24 this Act) for this additional annuity for not less than the 25 equivalent of one full year. Such employee, however, shall 26 make arrangement to pay to the fund a balance of such 1/2 of 27 1% contributions, based on his final salary, as will bring 28 such 1/2 of 1% contributions, computed without interest, to 29 the equivalent of or completion of one year's contributions. 30 Beginning with January, 1960, each employee shall 31 contribute by means of salary deductions 1/2 of 1% of each 32 salary payment, concurrently with and in addition to the 33 employee contributions otherwise made for annuity purposes. 34 Each such additional contribution shall be credited to an SB314 Enrolled -3- LRB9207506EGfg 1 account in the prior service annuity reserve, to be used, 2 together with city contributions, to defray the cost of the 3 specified annuity increments. Any balance in such account at 4 the beginning of each calendar year shall be credited with 5 interest at the rate of 3% per annum. 6 Such additional employee contributions are not 7 refundable, except to an employee who withdraws and applies 8 for refund under this Article, and in cases where a term 9 annuity becomes payable. In such cases his contributions 10 shall be refunded, without interest, and charged to such 11 account in the prior service annuity reserve. 12 (Source: P.A. 90-766, eff. 8-14-98.) 13 (40 ILCS 5/8-138) (from Ch. 108 1/2, par. 8-138) 14 Sec. 8-138. Minimum annuities - Additional provisions. 15 (a) An employee who withdraws after age 65 or more with 16 at least 20 years of service, for whom the amount of age and 17 service and prior service annuity combined is less than the 18 amount stated in this Section, shall from the date of 19 withdrawal, instead of all annuities otherwise provided, be 20 entitled to receive an annuity for life of $150 a year, plus 21 1 1/2% for each year of service, to and including 20 years, 22 and 1 2/3% for each year of service over 20 years, of his 23 highest average annual salary for any 4 consecutive years 24 within the last 10 years of service immediately preceding the 25 date of withdrawal. 26 An employee who withdraws after 20 or more years of 27 service, before age 65, shall be entitled to such annuity, to 28 begin not earlier than upon attained age of 55 years if under 29 such age at withdrawal, reduced by 2% for each full year or 30 fractional part thereof that his attained age is less than 31 65, plus an additional 2% reduction for each full year or 32 fractional part thereof that his attained age when annuity is 33 to begin is less than 60 so that the total reduction at age SB314 Enrolled -4- LRB9207506EGfg 1 55 shall be 30%. 2 (b) An employee who withdraws after July 1, 1957, at age 3 60 or over, with 20 or more years of service, for whom the 4 age and service and prior service annuity combined, is less 5 than the amount stated in this paragraph, shall, from the 6 date of withdrawal, instead of such annuities, be entitled to 7 receive an annuity for life equal to 1 2/3% for each year of 8 service, of the highest average annual salary for any 5 9 consecutive years within the last 10 years of service 10 immediately preceding the date of withdrawal; provided, that 11 in the case of any employee who withdraws on or after July 1, 12 1971, such employee age 60 or over with 20 or more years of 13 service, shall receive an annuity for life equal to 1.67% for 14 each of the first 10 years of service; 1.90% for each of the 15 next 10 years of service; 2.10% for each year of service in 16 excess of 20 but not exceeding 30; and 2.30% for each year of 17 service in excess of 30, based on the highest average annual 18 salary for any 4 consecutive years within the last 10 years 19 of service immediately preceding the date of withdrawal. 20 An employee who withdraws after July 1, 1957 and before 21 January 1, 1988, with 20 or more years of service, before age 22 60 years is entitled to annuity, to begin not earlier than 23 upon attained age of 55 years, if under such age at 24 withdrawal, as computed in the last preceding paragraph, 25 reduced 0.25% for each full month or fractional part thereof 26 that his attained age when annuity is to begin is less than 27 60 if the employee was born before January 1, 1936, or 0.5% 28 for each such month if the employee was born on or after 29 January 1, 1936. 30 Any employee born before January 1, 1936, who withdraws 31 with 20 or more years of service, and any employee with 20 or 32 more years of service who withdraws on or after January 1, 33 1988, may elect to receive, in lieu of any other employee 34 annuity provided in this Section, an annuity for life equal SB314 Enrolled -5- LRB9207506EGfg 1 to 1.80% for each of the first 10 years of service, 2.00% for 2 each of the next 10 years of service, 2.20% for each year of 3 service in excess of 20 but not exceeding 30, and 2.40% for 4 each year of service in excess of 30, of the highest average 5 annual salary for any 4 consecutive years within the last 10 6 years of service immediately preceding the date of 7 withdrawal, to begin not earlier than upon attained age of 55 8 years, if under such age at withdrawal, reduced 0.25% for 9 each full month or fractional part thereof that his attained 10 age when annuity is to begin is less than 60; except that an 11 employee retiring on or after January 1, 1988, at age 55 or 12 over but less than age 60, having at least 35 years of 13 service, or an employee retiring on or after July 1, 1990, at 14 age 55 or over but less than age 60, having at least 30 years 15 of service, or an employee retiring on or after the effective 16 date of this amendatory Act of 1997, at age 55 or over but 17 less than age 60, having at least 25 years of service, shall 18 not be subject to the reduction in retirement annuity because 19 of retirement below age 60. 20 However, in the case of an employee who retired on or 21 after January 1, 1985 but before January 1, 1988, at age 55 22 or older and with at least 35 years of service, and who was 23 subject under this subsection (b) to the reduction in 24 retirement annuity because of retirement below age 60, that 25 reduction shall cease to be effective January 1, 1991, and 26 the retirement annuity shall be recalculated accordingly. 27 Any employee who withdraws on or after July 1, 1990, with 28 20 or more years of service, may elect to receive, in lieu of 29 any other employee annuity provided in this Section, an 30 annuity for life equal to 2.20% for each year of service if 31 withdrawal is before January 1, 2002, or 2.40% for each year 32 of service if withdrawal is on or after January 1, 2002, of 33 the highest average annual salary for any 4 consecutive years 34 within the last 10 years of service immediately preceding the SB314 Enrolled -6- LRB9207506EGfg 1 date of withdrawal, to begin not earlier than upon attained 2 age of 55 years, if under such age at withdrawal, reduced 3 0.25% for each full month or fractional part thereof that his 4 attained age when annuity is to begin is less than 60; except 5 that an employee retiring at age 55 or over but less than age 6 60, having at least 30 years of service, shall not be subject 7 to the reduction in retirement annuity because of retirement 8 below age 60. 9 Any employee who withdraws on or after the effective date 10 of this amendatory Act of 1997 with 20 or more years of 11 service may elect to receive, in lieu of any other employee 12 annuity provided in this Section, an annuity for life equal 13 to 2.20%,for each year of service, if withdrawal is before 14 January 1, 2002, or 2.40% for each year of service if 15 withdrawal is on or after January 1, 2002, of the highest 16 average annual salary for any 4 consecutive years within the 17 last 10 years of service immediately preceding the date of 18 withdrawal, to begin not earlier than upon attainment of age 19 55 (age 50 if the employee has at least 30 years of service), 20 reduced 0.25% for each full month or remaining fractional 21 part thereof that the employee's attained age when annuity is 22 to begin is less than 60; except that an employee retiring at 23 age 50 or over with at least 30 years of service or at age 55 24 or over with at least 25 years of service shall not be 25 subject to the reduction in retirement annuity because of 26 retirement below age 60. 27 The maximum annuity payable under part (a) and (b) of 28 this Section shall not exceed 70% of highest average annual 29 salary in the case of an employee who withdraws prior to July 30 1, 1971,and75% if withdrawal takes place on or after July 31 1, 1971 and prior to January 1, 2002, or 80% if withdrawal 32 takes place on or after January 1, 2002. For the purpose of 33 the minimum annuity provided in this Section $1,500 is 34 considered the minimum annual salary for any year; and the SB314 Enrolled -7- LRB9207506EGfg 1 maximum annual salary for the computation of such annuity is 2 $4,800 for any year before 1953, $6000 for the years 1953 to 3 1956, inclusive, and the actual annual salary, as salary is 4 defined in this Article, for any year thereafter. 5 To preserve rights existing on December 31, 1959, for 6 participants and contributors on that date to the fund 7 created by the Court and Law Department Employees' Annuity 8 Act, who became participants in the fund provided for on 9 January 1, 1960, the maximum annual salary to be considered 10 for such persons for the years 1955 and 1956 is $7,500. 11 (c) For an employee receiving disability benefit, his 12 salary for annuity purposes under paragraphs (a) and (b) of 13 this Section, for all periods of disability benefit 14 subsequent to the year 1956, is the amount on which his 15 disability benefit was based. 16 (d) An employee with 20 or more years of service, whose 17 entire disability benefit credit period expires before 18 attainment of age 55 while still disabled for service, is 19 entitled upon withdrawal to the larger of (1) the minimum 20 annuity provided above, assuming he is then age 55, and 21 reducing such annuity to its actuarial equivalent as of his 22 attained age on such date or (2) the annuity provided from 23 his age and service and prior service annuity credits. 24 (e) The minimum annuity provisions do not apply to any 25 former municipal employee receiving an annuity from the fund 26 who re-enters service as a municipal employee, unless he 27 renders at least 3 years of additional service after the date 28 of re-entry. 29 (f) An employee in service on July 1, 1947, or who 30 became a contributor after July 1, 1947 and before attainment 31 of age 70, who withdraws after age 65, with less than 20 32 years of service for whom the annuity has been fixed under 33 this Article shall, instead of the annuity so fixed, receive 34 an annuity as follows: SB314 Enrolled -8- LRB9207506EGfg 1 Such amount as he could have received had the accumulated 2 amounts for annuity been improved with interest at the 3 effective rate to the date of his withdrawal, or to 4 attainment of age 70, whichever is earlier, and had the city 5 contributed to such earlier date for age and service annuity 6 the amount that it would have contributed had he been under 7 age 65, after the date his annuity was fixed in accordance 8 with this Article, and assuming his annuity were computed 9 from such accumulations as of his age on such earlier date. 10 The annuity so computed shall not exceed the annuity which 11 would be payable under the other provisions of this Section 12 if the employee was credited with 20 years of service and 13 would qualify for annuity thereunder. 14 (g) Instead of the annuity provided in this Article, an 15 employee having attained age 65 with at least 15 years of 16 service who withdraws from service on or after July 1, 1971 17 and whose annuity computed under other provisions of this 18 Article is less than the amount provided under this 19 paragraph, is entitled to a minimum annuity for life equal to 20 1% of the highest average annual salary, as salary is defined 21 and limited in this Section for any 4 consecutive years 22 within the last 10 years of service for each year of service, 23 plus the sum of $25 for each year of service. The annuity 24 shall not exceed 60% of such highest average annual salary. 25 (g-1) Instead of any other retirement annuity provided 26 in this Article, an employee who has at least 10 years of 27 service and withdraws from service on or after January 1, 28 1999 may elect to receive a retirement annuity for life, 29 beginning no earlier than upon attainment of age 60, equal to 30 2.2% if withdrawal is before January 1, 2002, or 2.4% if 31 withdrawal is on or after January 1, 2002, of final average 32 salary for each year of service, subject to a maximum of 75% 33 of final average salary if withdrawal is before January 1, 34 2002, or 80% if withdrawal is on or after January 1, 2002. SB314 Enrolled -9- LRB9207506EGfg 1 For the purpose of calculating this annuity, "final average 2 salary" means the highest average annual salary for any 4 3 consecutive years in the last 10 years of service. 4 (h) The minimum annuities provided under this Section 5 shall be paid in equal monthly installments. 6 (i) The amendatory provisions of part (b) and (g) of 7 this Section shall be effective July 1, 1971 and apply in the 8 case of every qualifying employee withdrawing on or after 9 July 1, 1971. 10 (j) The amendatory provisions of this amendatory Act of 11 1985 (P.A. 84-23) relating to the discount of annuity because 12 of retirement prior to attainment of age 60, and to the 13 retirement formula, for those born before January 1, 1936, 14 shall apply only to qualifying employees withdrawing on or 15 after July 18, 1985. 16 (j-1) The changes made to this Section by this 17 amendatory Act of the 92nd General Assembly (increasing the 18 retirement formula to 2.4% per year of service and increasing 19 the maximum to 80%) apply to persons who withdraw from 20 service on or after January 1, 2002, regardless of whether 21 that withdrawal takes place before the effective date of this 22 amendatory Act. In the case of a person who withdraws from 23 service on or after January 1, 2002 but begins to receive a 24 retirement annuity before the effective date of this 25 amendatory Act, the annuity shall be recalculated, with the 26 increase resulting from this amendatory Act accruing from the 27 date the retirement annuity began. 28 (k) Beginning on January 1, 1999, the minimum amount of 29 employee's annuity shall be $850 per month for life for the 30 following classes of employees, without regard to the fact 31 that withdrawal occurred prior to the effective date of this 32 amendatory Act of 1998: 33 (1) any employee annuitant alive and receiving a 34 life annuity on the effective date of this amendatory Act SB314 Enrolled -10- LRB9207506EGfg 1 of 1998, except a reciprocal annuity; 2 (2) any employee annuitant alive and receiving a 3 term annuity on the effective date of this amendatory Act 4 of 1998, except a reciprocal annuity; 5 (3) any employee annuitant alive and receiving a 6 reciprocal annuity on the effective date of this 7 amendatory Act of 1998, whose service in this fund is at 8 least 5 years; 9 (4) any employee annuitant withdrawing after age 60 10 on or after the effective date of this amendatory Act of 11 1998, with at least 10 years of service in this fund. 12 The increases granted under items (1), (2) and (3) of 13 this subsection (k) shall not be limited by any other Section 14 of this Act. 15 (Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97; 16 90-766, eff. 8-14-98.) 17 (40 ILCS 5/11-134) (from Ch. 108 1/2, par. 11-134) 18 Sec. 11-134. Minimum annuities. 19 (a) An employee whose withdrawal occurs after July 1, 20 1957 at age 60 or over, with 20 or more years of service, (as 21 service is defined or computed in Section 11-216), for whom 22 the age and service and prior service annuity combined is 23 less than the amount stated in this Section, shall, from and 24 after the date of withdrawal, in lieu of all annuities 25 otherwise provided in this Article, be entitled to receive an 26 annuity for life of an amount equal to 1 2/3% for each year 27 of service, of the highest average annual salary for any 5 28 consecutive years within the last 10 years of service 29 immediately preceding the date of withdrawal; provided, that 30 in the case of any employee who withdraws on or after July 1, 31 1971, such employee age 60 or over with 20 or more years of 32 service, shall be entitled to instead receive an annuity for 33 life equal to 1.67% for each of the first 10 years of SB314 Enrolled -11- LRB9207506EGfg 1 service; 1.90% for each of the next 10 years of service; 2 2.10% for each year of service in excess of 20 but not 3 exceeding 30; and 2.30% for each year of service in excess of 4 30, based on the highest average annual salary for any 4 5 consecutive years within the last 10 years of service 6 immediately preceding the date of withdrawal. 7 An employee who withdraws after July 1, 1957 and before 8 January 1, 1988, with 20 or more years of service, before age 9 60, shall be entitled to an annuity, to begin not earlier 10 than age 55, if under such age at withdrawal, as computed in 11 the last preceding paragraph, reduced 0.25% if the employee 12 was born before January 1, 1936, or 0.5% if the employee was 13 born on or after January 1, 1936, for each full month or 14 fractional part thereof that his attained age when such 15 annuity is to begin is less than 60. 16 Any employee born before January 1, 1936 who withdraws 17 with 20 or more years of service, and any employee with 20 or 18 more years of service who withdraws on or after January 1, 19 1988, may elect to receive, in lieu of any other employee 20 annuity provided in this Section, an annuity for life equal 21 to 1.80% for each of the first 10 years of service, 2.00% for 22 each of the next 10 years of service, 2.20% for each year of 23 service in excess of 20, but not exceeding 30, and 2.40% for 24 each year of service in excess of 30, of the highest average 25 annual salary for any 4 consecutive years within the last 10 26 years of service immediately preceding the date of 27 withdrawal, to begin not earlier than upon attained age of 55 28 years, if under such age at withdrawal, reduced 0.25% for 29 each full month or fractional part thereof that his attained 30 age when annuity is to begin is less than 60; except that an 31 employee retiring on or after January 1, 1988, at age 55 or 32 over but less than age 60, having at least 35 years of 33 service, or an employee retiring on or after July 1, 1990, at 34 age 55 or over but less than age 60, having at least 30 years SB314 Enrolled -12- LRB9207506EGfg 1 of service, or an employee retiring on or after the effective 2 date of this amendatory Act of 1997, at age 55 or over but 3 less than age 60, having at least 25 years of service, shall 4 not be subject to the reduction in retirement annuity because 5 of retirement below age 60. 6 However, in the case of an employee who retired on or 7 after January 1, 1985 but before January 1, 1988, at age 55 8 or older and with at least 35 years of service, and who was 9 subject under this subsection (a) to the reduction in 10 retirement annuity because of retirement below age 60, that 11 reduction shall cease to be effective January 1, 1991, and 12 the retirement annuity shall be recalculated accordingly. 13 Any employee who withdraws on or after July 1, 1990, with 14 20 or more years of service, may elect to receive, in lieu of 15 any other employee annuity provided in this Section, an 16 annuity for life equal to 2.20% for each year of service if 17 withdrawal is before January 1, 2002, or 2.40% for each year 18 of service if withdrawal is on or after January 1, 2002, of 19 the highest average annual salary for any 4 consecutive years 20 within the last 10 years of service immediately preceding the 21 date of withdrawal, to begin not earlier than upon attained 22 age of 55 years, if under such age at withdrawal, reduced 23 0.25% for each full month or fractional part thereof that his 24 attained age when annuity is to begin is less than 60; except 25 that an employee retiring at age 55 or over but less than age 26 60, having at least 30 years of service, shall not be subject 27 to the reduction in retirement annuity because of retirement 28 below age 60. 29 Any employee who withdraws on or after the effective date 30 of this amendatory Act of 1997 with 20 or more years of 31 service may elect to receive, in lieu of any other employee 32 annuity provided in this Section, an annuity for life equal 33 to 2.20%,for each year of service if withdrawal is before 34 January 1, 2002, or 2.40% for each year of service if SB314 Enrolled -13- LRB9207506EGfg 1 withdrawal is on or after January 1, 2002, of the highest 2 average annual salary for any 4 consecutive years within the 3 last 10 years of service immediately preceding the date of 4 withdrawal, to begin not earlier than upon attainment of age 5 55 (age 50 if the employee has at least 30 years of service), 6 reduced 0.25% for each full month or remaining fractional 7 part thereof that the employee's attained age when annuity is 8 to begin is less than 60; except that an employee retiring at 9 age 50 or over with at least 30 years of service or at age 55 10 or over with at least 25 years of service shall not be 11 subject to the reduction in retirement annuity because of 12 retirement below age 60. 13 The maximum annuity payable under this paragraph (a) of 14 this Section shall not exceed 70% of highest average annual 15 salary in the case of an employee who withdraws prior to July 16 1, 1971, 75% if withdrawal takes place on or after July 1, 17 1971 and prior to January 1, 2002, or 80% if withdrawal is on 18 or after January 1, 2002. For the purpose of the minimum 19 annuity provided in said paragraphs $1,500 shall be 20 considered the minimum annual salary for any year; and the 21 maximum annual salary to be considered for the computation of 22 such annuity shall be $4,800 for any year prior to 1953, 23 $6,000 for the years 1953 to 1956, inclusive, and the actual 24 annual salary, as salary is defined in this Article, for any 25 year thereafter. 26 (b) For an employee receiving disability benefit, his 27 salary for annuity purposes under this Section shall, for all 28 periods of disability benefit subsequent to the year 1956, be 29 the amount on which his disability benefit was based. 30 (c) An employee with 20 or more years of service, whose 31 entire disability benefit credit period expires prior to 32 attainment of age 55 while still disabled for service, shall 33 be entitled upon withdrawal to the larger of (1) the minimum 34 annuity provided above assuming that he is then age 55, and SB314 Enrolled -14- LRB9207506EGfg 1 reducing such annuity to its actuarial equivalent at his 2 attained age on such date, or (2) the annuity provided from 3 his age and service and prior service annuity credits. 4 (d) The minimum annuity provisions as aforesaid shall 5 not apply to any former employee receiving an annuity from 6 the fund, and who re-enters service as an employee, unless he 7 renders at least 3 years of additional service after the date 8 of re-entry. 9 (e) An employee in service on July 1, 1947, or who 10 became a contributor after July 1, 1947 and prior to July 1, 11 1950, or who shall become a contributor to the fund after 12 July 1, 1950 prior to attainment of age 70, who withdraws 13 after age 65 with less than 20 years of service, for whom the 14 annuity has been fixed under the foregoing Sections of this 15 Article shall, in lieu of the annuity so fixed, receive an 16 annuity as follows: 17 Such amount as he could have received had the accumulated 18 amounts for annuity been improved with interest at the 19 effective rate to the date of his withdrawal, or to 20 attainment of age 70, whichever is earlier, and had the city 21 contributed to such earlier date for age and service annuity 22 the amount that would have been contributed had he been under 23 age 65, after the date his annuity was fixed in accordance 24 with this Article, and assuming his annuity were computed 25 from such accumulations as of his age on such earlier date. 26 The annuity so computed shall not exceed the annuity which 27 would be payable under the other provisions of this Section 28 if the employee was credited with 20 years of service and 29 would qualify for annuity thereunder. 30 (f) In lieu of the annuity provided in this or in any 31 other Section of this Article, an employee having attained 32 age 65 with at least 15 years of service who withdraws from 33 service on or after July 1, 1971 and whose annuity computed 34 under other provisions of this Article is less than the SB314 Enrolled -15- LRB9207506EGfg 1 amount provided under this paragraph shall be entitled to 2 receive a minimum annual annuity for life equal to 1% of the 3 highest average annual salary for any 4 consecutive years 4 within the last 10 years of service immediately preceding 5 retirement for each year of his service plus the sum of $25 6 for each year of service. Such annual annuity shall not 7 exceed the maximum percentages stated under paragraph (a) of 8 this Section of such highest average annual salary. 9 (f-1) Instead of any other retirement annuity provided 10 in this Article, an employee who has at least 10 years of 11 service and withdraws from service on or after January 1, 12 1999 may elect to receive a retirement annuity for life, 13 beginning no earlier than upon attainment of age 60, equal to 14 2.2% if withdrawal is before January 1, 2002, or 2.4% for 15 each year of service if withdrawal is on or after January 1, 16 2002, of final average salary for each year of service, 17 subject to a maximum of 75% of final average salary if 18 withdrawal is before January 1, 2002, or 80% if withdrawal is 19 on or after January 1, 2002. For the purpose of calculating 20 this annuity, "final average salary" means the highest 21 average annual salary for any 4 consecutive years in the last 22 10 years of service. 23 (g) Any annuity payable under the preceding subsections 24 of this Section 11-134 shall be paid in equal monthly 25 installments. 26 (h) The amendatory provisions of part (a) and (f) of 27 this Section shall be effective July 1, 1971 and apply in the 28 case of every qualifying employee withdrawing on or after 29 July 1, 1971. 30 (h-1) The changes made to this Section by this 31 amendatory Act of the 92nd General Assembly (increasing the 32 retirement formula to 2.4% per year of service and increasing 33 the maximum to 80%) apply to persons who withdraw from 34 service on or after January 1, 2002, regardless of whether SB314 Enrolled -16- LRB9207506EGfg 1 that withdrawal takes place before the effective date of this 2 amendatory Act. In the case of a person who withdraws from 3 service on or after January 1, 2002 but begins to receive a 4 retirement annuity before the effective date of this 5 amendatory Act, the annuity shall be recalculated, with the 6 increase resulting from this amendatory Act accruing from the 7 date the retirement annuity began. 8 (i) The amendatory provisions of this amendatory Act of 9 1985 relating to the discount of annuity because of 10 retirement prior to attainment of age 60 and increasing the 11 retirement formula for those born before January 1, 1936, 12 shall apply only to qualifying employees withdrawing on or 13 after August 16, 1985. 14 (j) Beginning on January 1, 1999, the minimum amount of 15 employee's annuity shall be $850 per month for life for the 16 following classes of employees, without regard to the fact 17 that withdrawal occurred prior to the effective date of this 18 amendatory Act of 1998: 19 (1) any employee annuitant alive and receiving a 20 life annuity on the effective date of this amendatory Act 21 of 1998, except a reciprocal annuity; 22 (2) any employee annuitant alive and receiving a 23 term annuity on the effective date of this amendatory Act 24 of 1998, except a reciprocal annuity; 25 (3) any employee annuitant alive and receiving a 26 reciprocal annuity on the effective date of this 27 amendatory Act of 1998, whose service in this fund is at 28 least 5 years; 29 (4) any employee annuitant withdrawing after age 60 30 on or after the effective date of this amendatory Act of 31 1998, with at least 10 years of service in this fund. 32 The increases granted under items (1), (2) and (3) of 33 this subsection (j) shall not be limited by any other Section 34 of this Act. SB314 Enrolled -17- LRB9207506EGfg 1 (Source: P.A. 90-32, eff. 6-27-97; 90-511, eff. 8-22-97; 2 90-766, eff. 8-14-98.) 3 (40 ILCS 5/11-134.1) (from Ch. 108 1/2, par. 11-134.1) 4 Sec. 11-134.1. Automatic increase in annuity. 5 (a) An employee who retired or retires from service 6 after December 31, 1963, and before January 1, 1987, having 7 attained age 60 or more, shall, in the month of January of 8 the year following the year in which the first anniversary of 9 retirement occurs, have the amount of his then fixed and 10 payable monthly annuity increased by 1 1/2%, and such first 11 fixed annuity as granted at retirement increased by a further 12 1 1/2% in January of each year thereafter. Beginning with 13 January of the year 1972, such increases shall be at the rate 14 of 2% in lieu of the aforesaid specified 1 1/2%. Beginning 15 January, 1984, such increases shall be at the rate of 3%. 16 Beginning in January of 1999, such increases shall be at the 17 rate of 3% of the currently payable monthly annuity, 18 including any increases previously granted under this 19 Article. An employee who retires on annuity after December 20 31, 1963 and before January 1, 1987, but prior to age 60, 21 shall receive such increases beginning with January of the 22 year immediately following the year in which he attains the 23 age of 60 years. 24 An employee who retires from service on or after January 25 1, 1987 shall, upon the first annuity payment date following 26 the first anniversary of the date of retirement, or upon the 27 first annuity payment date following attainment of age 60, 28 whichever occurs later, have his then fixed and payable 29 monthly annuity increased by 3%, and such annuity shall be 30 increased by an additional 3% of the original fixed annuity 31 on the same date each year thereafter. Beginning in January 32 of 1999, such increases shall be at the rate of 3% of the 33 currently payable monthly annuity, including any increases SB314 Enrolled -18- LRB9207506EGfg 1 previously granted under this Article. 2 (a-5) Notwithstanding the provisions of subsection (a), 3 upon the first annuity payment date following (1) the third 4 anniversary of retirement, (2) the attainment of age 53, or 5 (3) January 1, 2002, whichever occurs latest, the monthly 6 annuity of an employee who retires on annuity prior to the 7 attainment of age 60 and has not received an increase under 8 subsection (a) shall be increased by 3%, and the annuity 9 shall be increased by an additional 3% of the current payable 10 monthly annuity, including any increases previously granted 11 under this Article, on the same date each year thereafter. 12 The increases provided under this subsection are in lieu of 13 the increases provided in subsection (a). 14 (b) Subsections (a) and (a-5) areThe foregoing15provision isnot applicable to an employee retiring and 16 receiving a term annuity, as defined in this Article, nor to 17 any otherwise qualified employee who retires before he shall 18 have made employee contributions (at the 1/2 of 1% rate as 19 hereinafter provided) for the purposes of this additional 20 annuity for not less than the equivalent of one full year. 21 Such employee, however, shall make arrangement to pay to the 22 fund a balance of such 1/2 of 1% contributions, based on his 23 final salary, as will bring such 1/2 of 1% contributions, 24 computed without interest, to the equivalent of or completion 25 of one year's contributions. 26 Beginning with the month of January, 1964, each employee 27 shall contribute by means of salary deductions 1/2 of 1% of 28 each salary payment, concurrently with and in addition to the 29 employee contributions otherwise made for annuity purposes. 30 Each such additional employee contribution shall be 31 credited to an account in the prior service annuity reserve, 32 to be used, together with city contributions, to defray the 33 cost of the specified annuity increments. Any balance as of 34 the beginning of each calendar year existing in such account SB314 Enrolled -19- LRB9207506EGfg 1 shall be credited with interest at the rate of 3% per annum. 2 Such employee contributions shall not be subject to 3 refund, except to an employee who resigns or is discharged 4 and applies for refund under this Article, and also in cases 5 where a term annuity becomes payable. 6 In such cases the employee contributions shall be 7 refunded him, without interest, and charged to the 8 aforementioned account in the prior service annuity reserve. 9 (Source: P.A. 90-766, eff. 8-14-98.) 10 Section 10. The Law Enforcement Officers, Civil Defense 11 Workers, Civil Air Patrol Members, Paramedics, Firemen, 12 Chaplains, and State Employees Compensation Act is amended by 13 changing Section 3 as follows: 14 (820 ILCS 315/3) (from Ch. 48, par. 283) 15 Sec. 3. Duty death benefit. If a claim therefor is made 16 within one year of the date of death of athelaw enforcement 17 officer, civil defense worker, civil air patrol member, 18 paramedic, fireman, chaplain, or State employee killed in the 19 line of duty, compensationin the amount of $10,000shall be 20 paid to the person designated by thealaw enforcement 21 officer, civil defense worker, civil air patrol member, 22 paramedic, fireman, chaplain, or State employee. 23 The amount of compensation shall be $10,000 if the death 24killedin the line of duty occurred prior to January 1, 25 1974;, and$20,000 if such death occurred after December 31, 26 1973 and before July 1, 1983;,$50,000 if such death occurred 27 on or after July 1, 1983 and before January 1, 1996;,28 $100,000 if the death occurred on or after January 1, 1996 29 and before May 18, 2001;the effective date of this30amendatory Act of the 92nd General Assembly, and$118,000 if 31 the death occurred on or after May 18, 2001the effective32date of this amendatory Act of the 92nd General Assemblyand SB314 Enrolled -20- LRB9207506EGfg 1 before the effective date of this amendatory Act of the 92nd 2 General Assembly; and $259,038 if the death occurs on or 3 after the effective date of this amendatory Act of the 92nd 4 General Assembly and before January 1, 2003. 5 For deaths occurring on or afterBeginningJanuary 1, 6 2003, the death compensation rate for death in the line of 7 duty occurring in a particular calendar year shall be the 8 death compensation rate for death occurring in the previous 9 calendar year (or in the case of deaths occurring in 2003, 10 the rate in effect on December 31, 2002) increased by a 11 percentage thereof equal to the percentage increase, if any, 12 in the index known as the Consumer Price Index for All Urban 13 Consumers: U.S. city average, unadjusted, for all items, 14"Employment Cost Index, Wages and Salaries, by Occupation and15Industry Group: State and Local Government Workers: Public16Administration",as published by the United States Department 17 of Labor, Bureau of Labor Statistics, for the 12 months 18 ending with the month of June of that previous calendar year. 19 If no beneficiary is designated or surviving at the death 20 of the law enforcement officer, civil defense worker, civil 21 air patrol member, paramedic, fireman, chaplain, or State 22 employee killed in the line of duty, the compensation shall 23 be paid as follows: 24 (a) when there is a surviving spouse, the entire 25 sum shall be paid to the spouse; 26 (b) when there is no surviving spouse, but a 27 surviving descendant of the decedent, the entire sum 28 shall be paid to the decedent's descendants per stirpes; 29 (c) when there is neither a surviving spouse nor a 30 surviving descendant, the entire sum shall be paid to the 31 parents of the decedent in equal parts, allowing to the 32 surviving parent, if one is dead, the entire sum; and 33 (d) when there is no surviving spouse, descendant 34 or parent of the decedent, but there are surviving SB314 Enrolled -21- LRB9207506EGfg 1 brothers or sisters, or descendants of a brother or 2 sister, who were receiving their principal support from 3 the decedent at his death, the entire sum shall be paid, 4 in equal parts, to the dependent brothers or sisters or 5 dependent descendant of a brother or sister. Dependency 6 shall be determined by the Court of Claims based upon the 7 investigation and report of the Attorney General. 8 When there is no beneficiary designated or surviving at 9 the death of the law enforcement officer, civil defense 10 worker, civil air patrol member, paramedic, fireman, 11 chaplain, or State employee killed in the line of duty and no 12 surviving spouse, descendant, parent, dependent brother or 13 sister, or dependent descendant of a brother or sister, no 14 compensation shall be payable under this Act. 15 No part of such compensation may be paid to any other 16 person for any efforts in securing such compensation. 17 (Source: P.A. 92-3, eff. 5-18-01.) 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 95. To the extent that the changes made in 26 Section 5 of this Act (increasing the retirement formula 27 under Articles 8 and 11 of the Illinois Pension Code) 28 conflict with the corresponding changes made in House Bill 29 5168 of the 92nd General Assembly, the provisions of this Act 30 are intended to control. SB314 Enrolled -22- LRB9207506EGfg 1 Section 99. Effective date. This Act takes effect upon 2 becoming law.