| ||||
| Public Act 103-0443 | ||||
| ||||
| ||||
AN ACT concerning public employee benefits.
| ||||
Be it enacted by the People of the State of Illinois,
| ||||
represented in the General Assembly:
| ||||
Section 5. The Illinois Pension Code is amended by | ||||
changing Sections 8-137 and 8-137.1 as follows:
| ||||
(40 ILCS 5/8-137)
(from Ch. 108 1/2, par. 8-137)
| ||||
(Text of Section WITHOUT the changes made by P.A. 98-641, | ||||
which has been held unconstitutional) | ||||
Sec. 8-137. Automatic increase in annuity.
| ||||
(a) An employee who retired or retires from service after | ||||
December 31,
1959 and before January 1, 1987, having attained | ||||
age 60 or more, shall,
in January of the year
after the year in | ||||
which the first anniversary of retirement occurs, have
the | ||||
amount of his then fixed and payable monthly annuity increased | ||||
by 1
1/2%, and such first fixed annuity as granted at | ||||
retirement increased by
a further 1 1/2% in January of each | ||||
year thereafter. Beginning with
January of the year 1972, such | ||||
increases shall be at the rate of 2% in
lieu of the aforesaid | ||||
specified 1 1/2%, and beginning with January of the
year 1984 | ||||
such increases shall be at the rate of 3%.
Beginning in January | ||||
of 1999, such increases
shall be at the rate of 3% of the | ||||
currently payable monthly annuity,
including any increases | ||||
previously granted under this Article. An
employee who retires | ||||
on annuity after December 31, 1959 and before
January 1, 1987, | ||
but before age 60, shall receive such
increases beginning in | ||
January of the year after the year
in which he attains age 60.
| ||
An employee who retires from service on or after January | ||
1, 1987 shall, upon
the first annuity payment date following | ||
the first anniversary of the date of
retirement, or upon the | ||
first annuity payment date following attainment of age
60, | ||
whichever occurs later, have his then fixed and payable | ||
monthly annuity
increased by 3%, and such annuity shall be | ||
increased by an additional 3% of the
original fixed annuity on | ||
the same date each year thereafter. Beginning in
January of | ||
1999, such increases shall be at the rate of 3% of the | ||
currently
payable monthly annuity, including any increases | ||
previously granted under this
Article.
| ||
(a-5) Notwithstanding the provisions of subsection (a), | ||
upon the first
annuity payment date following (1) the third | ||
anniversary of retirement, (2)
the attainment of age 53, or | ||
(3) January 1, 2002, whichever
occurs latest,
the
monthly | ||
annuity of an employee who retires on annuity prior to the | ||
attainment
of age 60 and has not received an increase under | ||
subsection (a) shall
be
increased by 3%, and the annuity shall | ||
be increased by an additional
3% of the
current payable | ||
monthly annuity, including any
increases previously
granted
| ||
under this Article, on the same date each year thereafter. The | ||
increases
provided under this subsection are in lieu of the | ||
increases provided in
subsection (a).
| ||
(a-6) Notwithstanding the provisions of subsections (a) | ||
and (a-5), for all
calendar years following the year in which | ||
this amendatory Act of the 93rd
General Assembly takes effect, | ||
an increase in annuity under this Section that
would otherwise | ||
take effect at any time during the year shall instead take
| ||
effect in January of that year.
| ||
(b) Subsections (a), (a-5), and (a-6) are not
applicable | ||
to an employee retiring
and receiving a term annuity, as | ||
herein defined, nor to any otherwise
qualified employee who | ||
retires before he makes employee contributions (at
the 1/2 of | ||
1% rate as provided in this Act) for this additional
annuity | ||
for not less than the equivalent of one full year. Such
| ||
employee, however, shall make arrangement to pay to the fund a | ||
balance
of such 1/2 of 1% contributions, based on his final | ||
salary, as will
bring such 1/2 of 1% contributions, computed | ||
without interest, to the
equivalent of or completion of one | ||
year's contributions.
| ||
Beginning with January, 1960, each employee shall | ||
contribute by means of
salary deductions 1/2 of 1% of each | ||
salary payment, concurrently with
and in addition to the | ||
employee contributions otherwise made for annuity
purposes.
| ||
Each such additional contribution shall be credited to an | ||
account in
the prior service annuity reserve, to be used, | ||
together with city
contributions, to defray the cost of the | ||
specified annuity increments.
Any balance in such account at | ||
the beginning of each calendar year shall
be credited with | ||
interest at the rate of 3% per annum.
| ||
Such additional employee contributions are not refundable, | ||
except to
an employee who withdraws and applies for refund | ||
under this Article, and
in cases where a term annuity becomes | ||
payable. In such cases his
contributions shall be refunded, | ||
without interest, and charged to such
account in the prior | ||
service annuity reserve.
| ||
(Source: P.A. 92-599, eff. 6-28-02; 92-609, eff.
7-1-02; | ||
93-654, eff. 1-16-04.)
| ||
(40 ILCS 5/8-137.1) (from Ch. 108 1/2, par. 8-137.1)
| ||
(Text of Section WITHOUT the changes made by P.A. 98-641, | ||
which has been held unconstitutional) | ||
Sec. 8-137.1. Automatic increases in annuity for certain | ||
heretofore retired
participants.
A retired municipal employee | ||
who (a) is receiving annuity based on a
service credit of 20 or | ||
more years regardless of age at retirement or based
on a | ||
service credit of 15 or more years with retirement at age 55 or | ||
over,
and (b) does not qualify for the automatic increases in | ||
annuity provided
for in Section 8-137 of this Article, and (c) | ||
elects to make a contribution
to the Fund at a time and manner | ||
prescribed by the Retirement Board, of a
sum equal to 1% of the | ||
amount of final monthly salary times the number of
full years | ||
of service on which the annuity was based in those cases where
| ||
the annuity was computed on the money purchase formula and in | ||
those cases
in which the annuity was computed under the | ||
minimum annuity formula
provisions of this Article a sum equal | ||
to 1% of the average monthly salary
on which the annuity was | ||
based times such number of full years of service,
shall have | ||
his original fixed and payable monthly amount of annuity
| ||
increased in January of the year following the year in which he | ||
attains the
age of 65 years, if such age of 65 years is | ||
attained in the year 1969 or
later, by an amount equal to | ||
1-1/2%, and by an equal additional 1-1/2% in
January of each | ||
year thereafter. Beginning with January of the year 1972,
such | ||
increases shall be at the rate of 2% in lieu of the aforesaid
| ||
specified 1 1/2%, and beginning January of the year 1984 such | ||
increases
shall be at the rate of 3%.
Beginning in January of | ||
1999, such increases shall be at the rate of
3% of the | ||
currently payable monthly annuity, including any increases | ||
previously
granted under this Article.
| ||
Whenever the retired municipal employee receiving annuity | ||
has attained
the age of 66 or more in 1969, he shall have such | ||
annuity increased in
January, 1970 by an amount equal to | ||
1-1/2% multiplied by the number equal
to the number of months | ||
of January elapsing from and including January of
the year | ||
immediately following the year he attained the age of 65 if
| ||
retired at or before age 65, or from and including January of | ||
the year
immediately following the year of retirement if | ||
retired at an age greater
than 65, to and including January, | ||
1970, and by an equal additional 1-1/2%
in January of each year | ||
thereafter. Beginning with January of the year
1972, such | ||
increases shall be at the rate of 2% in lieu of the aforesaid
| ||
specified 1 1/2%, and beginning January of the year 1984 such | ||
increases
shall be at the rate of 3%.
Beginning in January of | ||
1999, such increases shall be at the rate of
3% of the | ||
currently payable monthly annuity, including any increases | ||
previously
granted under this Article.
| ||
To defray the annual cost of such increases, the annual | ||
interest income
of the Fund, accruing from investments held by | ||
the Fund, exclusive of gains
or losses on sales or exchanges of | ||
assets during the year, over and above
4% a year, shall be used | ||
to the extent necessary and available to finance
the cost of | ||
such increases for the following year, and such amount shall | ||
be
transferred as of the end of each year, beginning with the | ||
year 1969, to a
Fund account designated as the Supplementary | ||
Payment Reserve from the
Investment and Interest Reserve set | ||
forth in Section 8-221. The sums
contributed by annuitants as | ||
provided for in this Section shall also be
placed in the | ||
aforesaid Supplementary Payment Reserve and shall be applied
| ||
and used for the purposes of such Fund account, together with | ||
the aforesaid
interest.
| ||
In the event the monies in the Supplementary Payment | ||
Reserve in any year
arising from: (1) the available interest | ||
income as defined hereinbefore and
accruing in the preceding | ||
year above 4% a year and (2) the contributions by
retired | ||
persons, as set forth hereinbefore, are insufficient to make | ||
the
total payments to all persons estimated to be entitled to | ||
the annuity
increases specified hereinbefore, then (3) any | ||
interest earnings over 4% a
year beginning with the year 1969 | ||
which were not previously used to finance
such increases and | ||
which were transferred to the Prior Service Annuity
Reserve | ||
may be used to the extent necessary and available to provide
| ||
sufficient funds to finance such increases for the current | ||
year, and such
sums shall be transferred from the Prior | ||
Service Annuity Reserve.
| ||
In the event the total monies available in the | ||
Supplementary Payment
Reserve from the preceding indicated | ||
sources are insufficient to make the
total payments to all | ||
persons entitled to such increases for the year, a
| ||
proportionate amount computed as the ratio of the monies | ||
available to the
total of the total payments for that year | ||
shall be paid to each person for
that year.
| ||
The Fund shall be obligated for the payment of the | ||
increases in annuity
as provided for in this Section only to | ||
the extent that the assets for such
purpose, as specified | ||
herein, are available.
| ||
(Source: P.A. 90-766, eff. 8-14-98.) | ||
(40 ILCS 5/8-174.2 rep.) | ||
Section 10. The Illinois Pension Code is amended by | ||
repealing Section 8-174.2.
| ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law.
| ||