State of Illinois
92^nd General Assembly
Legislation

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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)  are  The  foregoing
20    provision is not  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,  and 75% 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)  are  The  foregoing
15    provision is not  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 a the law enforcement
17    officer,  civil  defense  worker,  civil  air  patrol member,
18    paramedic, fireman, chaplain, or State employee killed in the
19    line of duty, compensation in the amount of $10,000 shall  be
20    paid  to  the  person  designated  by  the  a law 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
24    killed in 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   this
30    amendatory  Act of the 92nd General Assembly, and $118,000 if
31    the death occurred on or after May  18,  2001  the  effective
32    date  of this amendatory Act of the 92nd General Assembly and
 
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 after Beginning January 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 and
15    Industry Group: State and Local Government  Workers:   Public
16    Administration", 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.

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