State of Illinois
92nd General Assembly
Legislation

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92_SB0486

 
                                               LRB9207945EGfg

 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 9-134 and 9-146.1 as follows:

 6        (40 ILCS 5/9-134) (from Ch. 108 1/2, par. 9-134)
 7        Sec. 9-134.  Minimum annuity - Additional provisions.
 8        (a)  An employee who withdraws after July 1, 1957 at  age
 9    60  or  more  with  20 or more years of service, for whom the
10    amount of age and service and prior service annuity  combined
11    is  less than the amount stated in this Section from the date
12    of withdrawal, instead of all annuities otherwise provided in
13    this Article, is entitled to receive an annuity for  life  of
14    an  amount  equal  to 1 2/3% for each year of service, of his
15    highest average annual salary for  any  5  consecutive  years
16    within the last 10 years of service immediately preceding the
17    date of withdrawal; provided that in the case of any employee
18    who  withdraws on or after July 1, 1971, such employee age 60
19    or over with 20 or more years of service, or who withdraws on
20    or after January 1, 1982 and on or after attainment of age 65
21    with 10 or more years of service, shall  instead  receive  an
22    annuity  for  life  equal  to  1.67% for each of the first 10
23    years of service; 1.90% for each of  the  next  10  years  of
24    service;  2.10%  for each year of service in excess of 20 but
25    not exceeding 30; and 2.30%  for  each  year  of  service  in
26    excess  of 30, based on the highest average annual salary for
27    any 4 consecutive years within the last 10 years  of  service
28    immediately preceding the date of withdrawal.
29        An  employee  who withdraws after July 1, 1957, but prior
30    to January 1, 1988, with 20 or more years of service,  before
31    age  60 is entitled to annuity, to begin not earlier than age
 
                            -2-                LRB9207945EGfg
 1    55, if under such age at withdrawal, as computed in the  last
 2    preceding paragraph, reduced 1/2 of 1% for each full month or
 3    fractional part thereof that his attained age when annuity is
 4    to  begin is less than 60 to the end that the total reduction
 5    at age 55 shall be 30%, except that an employee  retiring  at
 6    age 55 or over but less than age 60, having at least 35 years
 7    of  service,  shall  not  be  subject to the reduction in his
 8    retirement annuity because of retirement below age 60.
 9        An employee who withdraws on or after  January  1,  1988,
10    with  20  or  more  years  of  service  and before age 60, is
11    entitled to annuity as computed above, to begin  not  earlier
12    than  age  50 if under such age at withdrawal, reduced 1/2 of
13    1% for each full month or fractional part  thereof  that  his
14    attained age when annuity is to begin is less than 60, to the
15    end  that  the total reduction at age 50 shall be 60%, except
16    that an employee retiring at age 50 or over but less than age
17    60, having at least 30 years of service, shall not be subject
18    to the reduction in retirement annuity because of  retirement
19    below age 60.
20        An employee who withdraws on or after January 1, 1992 but
21    before  January  1,  1993,  at  age 60 or over with 5 or more
22    years of service, may elect, in lieu of  any  other  employee
23    annuity  provided  in this Section, to receive an annuity for
24    life equal to 2.20%  for  each  of  the  first  20  years  of
25    service,  and 2.40% for each year of service in excess of 20,
26    based  on  the  highest  average  annual  salary  for  any  4
27    consecutive  years  within  the  last  10  years  of  service
28    immediately preceding the date of  withdrawal.   An  employee
29    who withdraws on or after January 1, 1992, but before January
30    1,  1993,  on  or  after  attainment  of  age  55  but before
31    attainment of age 60 with 5 or  more  years  of  service,  is
32    entitled  to  elect  such  annuity,  but the annuity shall be
33    reduced 0.25% for each full month or fractional part  thereof
34    that  his  attained  age when the annuity is to begin is less
 
                            -3-                LRB9207945EGfg
 1    than age 60, to the end that the total reduction  at  age  55
 2    shall  be  15%, except that an employee retiring at age 55 or
 3    over but less than age  60,  having  at  least  30  years  of
 4    service,  shall not be subject to the reduction in retirement
 5    annuity because of retirement below  age  60.   This  annuity
 6    benefit  formula  shall only apply to those employees who are
 7    age 55 or over prior to January 1, 1993,  and  who  elect  to
 8    withdraw  at  age  55 or over on or after January 1, 1992 but
 9    before January 1, 1993.
10        The maximum annuity under this paragraph  (a)  shall  not
11    exceed  70%  of  highest  average  annual  salary  for  any 5
12    consecutive years within the last 10 years of service in  the
13    case  of an employee who withdraws prior to July 1, 1971, and
14    75%  of  the  highest  average  annual  salary  for   any   4
15    consecutive  years  within  the  last  10  years  of  service
16    immediately  preceding  the  date of withdrawal if withdrawal
17    takes place on or after July 1, 1971 and prior to January  1,
18    1988,  and 80% of the highest average annual salary for any 4
19    consecutive  years  within  the  last  10  years  of  service
20    immediately preceding the date of  withdrawal  if  withdrawal
21    takes  place  on  or  after  January 1, 1988. Fifteen hundred
22    dollars shall be considered  the  minimum  amount  of  annual
23    salary  for  any year, and the maximum shall be his salary as
24    defined in this Article, except that  for  the  years  before
25    1957  and  subsequent to 1952 the maximum annual salary to be
26    considered shall be $6,000, and for any year before the  year
27    1953, $4,800.
28        (b)  Any  employee who withdraws on or after July 1, 1985
29    but prior to January 1, 1988, at age 60 or over  with  10  or
30    more  years  of  service, may elect in lieu of the benefit in
31    paragraph (a) to receive an annuity for life equal  to  2.00%
32    for each year of service, based on the highest average annual
33    salary  for  any 4 consecutive years within the last 10 years
34    of service immediately preceding the date of withdrawal.   An
 
                            -4-                LRB9207945EGfg
 1    employee who withdraws on or after July 1, 1985, but prior to
 2    January 1, 1988, with 10 or more years of service, but before
 3    age  60,  is  entitled  to  elect  such annuity, to begin not
 4    earlier than age 55, but the annuity shall  be  reduced  0.5%
 5    for  each  full  month  or  fractional  part thereof that his
 6    attained age when the annuity is to begin is less than 60, to
 7    the end that the total reduction at  age  55  shall  be  30%;
 8    except  that  an employee retiring at age 55 or over but less
 9    than age 60, having at least 30 years of service,  shall  not
10    be  subject to the reduction in retirement annuity because of
11    retirement below age 60.
12        An employee who withdraws on or after January 1, 1988, at
13    age 60 or over with 10 or more years of service,  may  elect,
14    in  lieu  of  the  benefit  in  paragraph  (a), to receive an
15    annuity for life equal to 2.20% for  each  of  the  first  20
16    years of service, and 2.4% for each year of service in excess
17    of  20,  based on the highest average annual salary for any 4
18    consecutive  years  within  the  last  10  years  of  service
19    immediately preceding the date of withdrawal. An employee who
20    withdraws on or after January 1, 1988, with 10 or more  years
21    of  service,  but  before  age  60, is entitled to elect such
22    annuity, to begin not earlier than age 50,  but  the  annuity
23    shall  be reduced 0.5% for each full month or fractional part
24    thereof that his attained age when the annuity is to begin is
25    less than 60, to the end that the total reduction at  age  50
26    shall  be  60%, except that an employee retiring at age 50 or
27    over but less than age  60,  having  at  least  30  years  of
28    service,  shall not be subject to the reduction in retirement
29    annuity because of retirement below age 60.
30        An employee who withdraws on or after June 30, 2001  with
31    10  or  more years of service may elect, in lieu of any other
32    retirement annuity provided under this Article, to receive an
33    annuity for life, beginning no earlier than  upon  attainment
34    of  age  50,  equal  to  2.40%  of his or her highest average
 
                            -5-                LRB9207945EGfg
 1    annual salary for any 4 consecutive years within the last  10
 2    years  of  service immediately preceding withdrawal, for each
 3    year of service.  If the employee has less than 30  years  of
 4    service,  the  annuity shall be reduced by 0.5% for each full
 5    month or  remaining  fraction  thereof  that  the  employee's
 6    attained age when the annuity is to begin is less than 60.
 7        The  maximum  annuity  under this paragraph (b) shall not
 8    exceed 75% of the highest average annual  salary  for  any  4
 9    consecutive  years  within  the  last  10  years  of  service
10    immediately  preceding  the  date of withdrawal if withdrawal
11    occurs prior to January  1,  1988,  or  80%  of  the  highest
12    average  annual salary for any 4 consecutive years within the
13    last 10 years of service immediately preceding  the  date  of
14    withdrawal  if  withdrawal takes place on or after January 1,
15    1988.
16        The provisions of this paragraph (b) do not apply to  any
17    former  County  employee  receiving an annuity from the fund,
18    who re-enters service as a County employee, unless he renders
19    at least 3 years of additional  service  after  the  date  of
20    re-entry.
21        (c)  For  an  employee  receiving disability benefit, the
22    salary for annuity purposes under paragraph  (a)  or  (b)  of
23    this  Section  shall,  for  all periods of disability benefit
24    subsequent to the year 1956,  be  the  amount  on  which  his
25    disability benefit was based.
26        (d)  A  county employee with 20 or more years of service,
27    whose entire disability benefit credit period expires  before
28    attainment  of  age  50  (age  55 if expiration occurs before
29    January  1,  1988),  while  still  disabled  for  service  is
30    entitled upon withdrawal to the larger of:
31             (1)  The minimum annuity  provided  above,  assuming
32        that  he  is  then  age  50  (age 55 if expiration occurs
33        before January 1, 1988), and reducing such annuity to its
34        actuarial equivalent at his attained age on such date, or
 
                            -6-                LRB9207945EGfg
 1             (2)  the annuity provided from his age  and  service
 2        and prior service annuity credits.
 3        (e)  The minimum annuity provisions above do not apply to
 4    any  former  county  employee  receiving  an annuity from the
 5    fund, who re-enters service as a county employee,  unless  he
 6    renders at least 3 years of additional service after the date
 7    of re-entry.
 8        (f)  Any  employee  in  service  on  July 1, 1947, or who
 9    enters  service  thereafter  before  attaining  age  65   and
10    withdraws after age 65 with less than 10 years of service for
11    whom  the annuity has been fixed under the foregoing Sections
12    of this Article, shall, instead  of  the  annuity  so  fixed,
13    receive an annuity as follows:
14        Such amount as he could have received had the accumulated
15    amounts  for  annuity  been  improved  with  interest  at the
16    effective rate to the date of withdrawal, or to attainment of
17    age 70, whichever is earlier, and had the county  contributed
18    to  such  earlier date for age and service annuity the amount
19    that it would have contributed had  he  been  under  age  65,
20    after  the date his annuity was fixed in accordance with this
21    Article, and assuming his annuity  were  computed  from  such
22    accumulations  as  of  his  age on such earlier date. However
23    those employees who before  July  1,  1953,  made  additional
24    contributions in accordance with this Article, the annuity so
25    computed  under  this  paragraph shall not exceed the annuity
26    which would be payable under the  other  provisions  of  this
27    Section  if the employee concerned was credited with 20 years
28    of service and would qualify for annuity thereunder.
29        (g)  Instead of the annuity provided in this or any other
30    Section of this Article, an employee having attained  age  65
31    with  at  least  15  years  of service may elect to receive a
32    minimum annual annuity for life equal to 1%  of  the  highest
33    average  annual salary for any 4 consecutive years within the
34    last 10 years of service immediately preceding retirement for
 
                            -7-                LRB9207945EGfg
 1    each year of service, plus the sum of $25 for  each  year  of
 2    service  provided  that no such minimum annual annuity may be
 3    greater than 60% of such highest average annual salary.
 4        (h)  The   annuity   is   payable   in   equal    monthly
 5    installments.
 6        (i)  If,   by   operation   of   law,  a  function  of  a
 7    governmental unit, as defined by Section 20-107 of this Code,
 8    is transferred in whole or in part to  the  county  in  which
 9    this  Article 9 is created as set forth in Section 9-101, and
10    employees of the governmental unit are transferred as a class
11    to such county, the earnings credits in the retirement system
12    covering the governmental  unit  which  have  been  validated
13    under  Section  20-109  of  this  Code shall be considered in
14    determining the highest average annual salary for purposes of
15    this Section 9-134.
16        (j)  The annuity being paid to an employee  annuitant  on
17    July  1, 1988, shall be increased on that date by 1% for each
18    full year that has elapsed from the date the annuity began.
19        (k)  Notwithstanding anything to  the  contrary  in  this
20    Article  9, Section 20-131 shall not apply to an employee who
21    withdraws on or after January 1, 1988, but prior to attaining
22    age 55.  Therefore, no employee shall be entitled to elect to
23    have the alternative formula previously set forth in  Section
24    20-122  prior  to  the  amendatory  Act  of 1975 apply to any
25    annuity, the payment of  which  commenced  after  January  1,
26    1988, but prior to such employee's attainment of age 55.
27    (Source: P.A. 86-272; 87-794.)

28        (40 ILCS 5/9-146.1) (from Ch. 108 1/2, par. 9-146.1)
29        Sec. 9-146.1. Minimum annuities for widows.  The widow of
30    an  employee  who  retires  from service or dies while in the
31    service  subsequent  to  June  11,  1965,  who  is  otherwise
32    eligible for widow's annuity under this Article and for  whom
33    the  amount  of  widow's  annuity  and  widow's prior service
 
                            -8-                LRB9207945EGfg
 1    annuity combined, fixed or  provided  for  such  widow  under
 2    other  provisions  of  this Article 9 is less than the amount
 3    hereinafter provided in this Section, shall, from  and  after
 4    the  date her otherwise provided annuity would begin, in lieu
 5    of such otherwise provided widow's and widow's prior  service
 6    annuity,  be  entitled  to  the following indicated amount of
 7    annuity:
 8        (a)  The widow, of any employee who  dies  while  in  the
 9    service  on  or after the date on which he attains the age of
10    60 or more years with at least 20 years of service, or 10  or
11    more  years of service if death occurs on or after attainment
12    of age 65 and on or after January 1, 1982, shall be  entitled
13    to  an  annuity  equal  to  one-half of the amount of annuity
14    which her  deceased  husband  would  have  been  entitled  to
15    receive  had  he  withdrawn  from  the  service  on  the  day
16    immediately preceding the date of his death, conditional upon
17    such  widow  having  attained  the age of 60 or more years on
18    such date. Such amount of widow's annuity shall not, however,
19    exceed the sum of $500 a month if  death  in  service  occurs
20    before July 1, 1985.
21        If  such widow of such described employee shall not be 60
22    or more years of age  on  such  date  of  death,  the  amount
23    provided  in  the immediately preceding paragraph for a widow
24    60 or more years of age, shall, in the case of  such  younger
25    widow,  be  reduced  by 1/2 of 1 per cent for each month that
26    her then attained age is less than 60 years; except that such
27    younger widow of an employee who dies while in service on  or
28    after  July  1, 1985 with at least 30 years of service, shall
29    not be subject to the reduction in widow's annuity because of
30    her age less than 60 on the date of the employee's death.
31        (b)  The widow, of any employee who  dies  subsequent  to
32    the  date of his retirement on annuity, and who so retired on
33    or after the date on which he attained the age of 60 or  more
34    years  with at least 20 years of service, or 10 or more years
 
                            -9-                LRB9207945EGfg
 1    of service if retirement occurs on or after attainment of age
 2    65 and on or after January 1, 1982, shall be entitled  to  an
 3    annuity  equal to one-half of the amount of annuity which her
 4    deceased husband received as of the date of his retirement on
 5    annuity, conditional upon such widow having attained the  age
 6    of  60  or more years on the date of her husband's retirement
 7    on  annuity.  Such  amount  of  widow's  annuity  shall  not,
 8    however, exceed the sum of $500 a month if the  death  occurs
 9    before the effective date of this amendatory Act of 1991.
10        If  such  widow of such described employee shall not have
11    attained such age of 60 or more years on  such  date  of  her
12    husband's  retirement  on annuity, the amount provided in the
13    immediately preceding paragraph for a widow 60 or more  years
14    of  age  on  the date of her husband's retirement on annuity,
15    shall, in the case of such then younger widow, be reduced  by
16    1/2  of  1 per cent for each month that her then attained age
17    was less than 60 years; except that such younger widow of  an
18    employee  retiring  on or after July 1, 1985 with at least 30
19    years of service, shall not be subject to  the  reduction  in
20    widow's  annuity  because of her age less than 60 on the date
21    of the employee's retirement.
22        (c)  The  foregoing  provisions   relating   to   minimum
23    annuities  for  widows  shall  not  apply to the widow of any
24    former county employee receiving an annuity from the Fund  on
25    June  11,  1965,  who re-enters service as a county employee,
26    unless such employee renders at least 3 years  of  additional
27    service after the date of re-entry.
28        (d)  An  annuity  being  paid  to  a  surviving spouse on
29    January  1,  1984  shall  be  increased  by  10%  and   shall
30    thereafter   be   paid   at  the  increased  rate  until  the
31    termination of the annuity by  death  or  other  cause.   The
32    annuity  for  a  qualifying  widow  shall not exceed $500 per
33    month.
34        (e)  The widow of any employee who dies while in  service
 
                            -10-               LRB9207945EGfg
 1    on  or  after  July 1, 1985 but prior to January 1, 1988, and
 2    the widow of an employee who retires on or after July 1, 1985
 3    but prior to January 1,  1988  with  at  least  10  years  of
 4    service, and the widow of an employee who retires on or after
 5    January  1,  1984  but prior to July 1, 1985 with at least 30
 6    years of service, shall be entitled to an  annuity  equal  to
 7    one-half  of the amount of annuity which her deceased husband
 8    would have received had he retired immediately prior  to  his
 9    death  or  one-half  the  amount  of  the  originally granted
10    retirement annuity, whichever is  applicable.   Such  widow's
11    annuity  will be reduced 0.5% for each month that the widow's
12    attained age  is  less  than  age  60  on  the  date  of  the
13    employee's  death  in service or retirement if the employee's
14    death in service or retirement is  before  January  1,  1988;
15    except  that  such younger widow of an employee with at least
16    30 years of service shall not be subject to the reduction  in
17    widow's  annuity  because of her age less than 60 on the date
18    of the employee's death in service or retirement.
19        The widow of an employee who dies in service on or  after
20    January  1, 1988, or retires on or after January 1, 1988 with
21    at least 10 years of service, shall be entitled to an annuity
22    equal to 1/2 of the amount  of  annuity  which  her  deceased
23    husband  would have received had he retired immediately prior
24    to his death or 1/2 of the amount of the  annuity  which  her
25    deceased  husband  received  as  of  the  date  of his death,
26    whichever is  applicable.   Such  widow's  annuity  shall  be
27    reduced  0.5% for each month that the widow's attained age is
28    less than age 60 on the  date  of  the  employee's  death  if
29    employee's death in service or retirement is after January 1,
30    1988;  except  that such younger widow of an employee with at
31    least 30 years  of  service  shall  not  be  subject  to  the
32    reduction  in  widow's annuity because of her age on the date
33    of the employee's death.
34        In lieu of any other annuity provided  by  this  Article,
 
                            -11-               LRB9207945EGfg
 1    the  widow  of  an  employee  who dies in service on or after
 2    January 1, 1992, or retires on or after January 1, 1992  with
 3    at least 10 years of service, shall be entitled to an annuity
 4    equal  to  1/2  of  the  amount of annuity which her deceased
 5    husband would have received had he retired immediately  prior
 6    to  his  death  or 1/2 of the amount of the annuity which her
 7    deceased husband received  as  of  the  date  of  his  death,
 8    whichever  is  applicable.   Such  widow's  annuity  shall be
 9    reduced 0.5% for each month that the widow's attained age  is
10    less  than age 55 on the date of the employee's death; except
11    that such younger widow of an employee with at least 30 years
12    of service shall not be subject to the reduction  in  widow's
13    annuity  because  of  her  age  on the date of the employee's
14    death.
15        In lieu of any other annuity provided  by  this  Article,
16    the  widow  of  an  employee who dies in service or withdraws
17    from service on or after January 1, 1992 but  before  January
18    1,  1993  at  age 55 or over with at least 5 but less than 10
19    years of service, shall be entitled to an  annuity  equal  to
20    half  of  the  amount  of  annuity which her deceased husband
21    would have received had he retired immediately prior  to  his
22    death or half of the amount of the annuity which her deceased
23    husband  received  as  of the date of his death, whichever is
24    applicable.  This widow's annuity shall be reduced  0.5%  for
25    each  month  that the widow's attained age is less than 60 on
26    the date of the employee's death.
27        However, in the case of an employee dying in service, the
28    amount of widow's annuity shall not be less than 10%  of  the
29    highest  average  annual  salary  for any 4 consecutive years
30    within the last 10 years of service immediately preceding the
31    date of withdrawal.  The maximum amount of annuity under this
32    paragraph shall not be limited  to  a  dollar  maximum.   The
33    provisions  of this paragraph shall not apply to the widow of
34    any former County employee receiving an annuity from the fund
 
                            -12-               LRB9207945EGfg
 1    who re-enters service  as  a  County  employee,  unless  such
 2    employee renders at least 3 years of additional service after
 3    the date of re-entry.
 4        (f)  An  annuity being paid to a surviving spouse on July
 5    1, 1988, shall be increased on that date by 1% for each  full
 6    year that has elapsed from the date the annuity began.
 7        (g)  In  lieu  of  any  other annuity provided under this
 8    Article, if the deceased employee was receiving a  retirement
 9    annuity  at the time of his death and that death occurs on or
10    after January 1, 1993, the widow's annuity shall  be  50%  of
11    the  deceased  employee's  retirement  annuity at the time of
12    death, reduced by 0.5% for each month that the widow's age on
13    the date of death is less than 55, except that the  reduction
14    does not apply if the deceased employee had at least 30 years
15    of service.
16        (h)  In  lieu  of  any  other annuity provided under this
17    Article, the widow of an employee who dies in service  on  or
18    after January 1, 2001 or has at least 10 years of service and
19    dies  on  or after January 1, 2001 while receiving an annuity
20    shall be entitled to a widow's annuity equal to  65%  of  the
21    amount  of  annuity  which  her  deceased  husband would have
22    received had he retired immediately prior to his death or 65%
23    of the amount of  the  annuity  which  her  deceased  husband
24    received   as   of  the  date  of  his  death,  whichever  is
25    applicable.  This widow's annuity shall be  reduced  by  0.5%
26    for  each  month  that  the  widow's  age  on the date of the
27    employee's death is less than 55, unless the deceased husband
28    had at least 30 years of service, in which case the reduction
29    does not apply.
30    (Source: P.A. 86-273; 87-794; 87-1265.)

31        Section 90.  The State Mandates Act is amended by  adding
32    Section 8.25 as follows:
 
                            -13-               LRB9207945EGfg
 1        (30 ILCS 805/8.25 new)
 2        Sec.  8.25.  Exempt  mandate.  Notwithstanding Sections 6
 3    and 8 of this Act, no reimbursement by the State is  required
 4    for  the  implementation  of  any  mandate  created  by  this
 5    amendatory Act of the 92nd General Assembly.

 6        Section  99.  Effective date.  This Act takes effect upon
 7    becoming law.

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