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90_SB1341
40 ILCS 5/18-125 from Ch. 108 1/2, par. 18-125
40 ILCS 5/18-133 from Ch. 108 1/2, par. 18-133
Amends the Judges Article of the Pension Code. Reduces
the amount of the early retirement penalty for certain judges
who retire before attaining age 60. Also provides that a
judge who is eligible to receive the maximum rate of annuity
may elect to have his or her contributions to the System
based only on the increases in salary received by the judge
on or after the date of the election, rather than the total
salary received. Effective immediately.
SDS/bill0058/bkp
SDS/bill0058/bkp
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 18-125 and 18-133.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Sections 18-125 and 18-133 as follows:
7 (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
8 Sec. 18-125. Retirement annuity amount.
9 (a) The annual retirement annuity for a participant who
10 terminated service as a judge prior to July 1, 1971 shall be
11 based on the law in effect at the time of termination of
12 service.
13 (b) Effective July 1, 1971, the retirement annuity for
14 any participant in service on or after such date shall be 3
15 1/2% of final average salary, as defined in this Section, for
16 each of the first 10 years of service, and 5% of such final
17 average salary for each year of service on excess of 10.
18 For purposes of this Section, final average salary shall
19 be:
20 (1) the average salary for the last 4 years of
21 credited service as a judge for a participant who
22 terminates service before July 1, 1975.
23 (2) for a participant who terminates service after
24 June 30, 1975 and before July 1, 1982, the salary on the
25 last day of employment as a judge.
26 (3) for any participant who terminates service
27 after June 30, 1982 and before January 1, 1990, the
28 average salary for the final year of service as a judge.
29 (4) for a participant who terminates service on or
30 after January 1, 1990 but before the effective date of
31 this amendatory Act of 1995, the salary on the last day
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1 of employment as a judge.
2 (5) for a participant who terminates service on or
3 after the effective date of this amendatory Act of 1995,
4 the salary on the last day of employment as a judge, or
5 the highest salary received by the participant for
6 employment as a judge in a position held by the
7 participant for at least 4 consecutive years, whichever
8 is greater.
9 However, in the case of a participant who elects to
10 discontinue contributions as provided in subdivision (a)(2)
11 of Section 18-133, the time of such election shall be
12 considered the last day of employment in the determination of
13 final average salary under this subsection.
14 The maximum retirement annuity for any participant shall
15 be 85% of final average salary.
16 (c) The retirement annuity for a participant who retires
17 prior to age 60 with less than 28 years of service in the
18 System shall be reduced 1/2 of 1% for each month that the
19 participant's age is under 60 years at the time the annuity
20 commences. However, for a participant who retires on or
21 after the effective date of this amendatory Act of 1998, the
22 percentage reduction in retirement annuity imposed under this
23 subsection shall be reduced by 5/12 of 1% for every month of
24 service in excess of 20 years, and therefore a participant
25 with at least 26 years of service may retire at age 55
26 without any reduction in annuity.
27 The reduction in retirement annuity imposed by this
28 subsection shall not apply in the case of retirement on
29 account of disability.
30 (Source: P.A. 89-136, eff. 7-14-95.)
31 (40 ILCS 5/18-133) (from Ch. 108 1/2, par. 18-133)
32 Sec. 18-133. Financing; employee contributions.
33 (a) Effective July 1, 1967, each participant is required
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1 to contribute 7 1/2% of each payment of salary toward the
2 retirement annuity. Such contributions shall continue during
3 the entire time the participant is in service, with the
4 following exceptions:
5 (1) Contributions for the retirement annuity are
6 not required on salary received after 18 years of service
7 by persons who were participants before January 2, 1954.
8 (2) A participant who continues to serve as a judge
9 after becoming eligible to receive the maximum rate of
10 annuity may elect, through a written direction filed with
11 the Board, to discontinue contributing to the System.
12 Any such option elected by a judge shall be irrevocable
13 unless prior to January 1, 1999 July 1, 1996, and while
14 continuing to serve as judge, the judge (A) files with
15 the Board a letter cancelling the direction to
16 discontinue contributing to the System and requesting
17 that such contributing resume, and (B) pays into the
18 System an amount equal to the total of the discontinued
19 contributions plus interest thereon at 5% per annum.
20 Service credits earned in any other "participating
21 system" as defined in Article 20 of this Code shall be
22 considered for purposes of determining a judge's
23 eligibility to discontinue contributions under this
24 subdivision (a)(2).
25 (3) A participant who (i) continues to serve as a
26 judge after becoming eligible to receive the maximum rate
27 of annuity and (ii) has not elected to discontinue
28 contributing to the System under subdivision (a)(2) of
29 this Section (or has revoked any such election) may
30 elect, through a written direction filed with the Board,
31 to make contributions to the System based only on the
32 amount of the increases in salary received by the judge
33 on or after the date of the election, rather than the
34 total salary received. If a judge who is making
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1 contributions to the System on the effective date of this
2 amendatory Act of 1998 makes an election to limit
3 contributions under this subdivision (a)(3) within 90
4 days after that effective date, the election shall be
5 deemed to become effective on that effective date and the
6 judge shall be entitled to receive a refund of any excess
7 contributions paid to the System during that 90-day
8 period; any other election under this subdivision (a)(3)
9 becomes effective on the first of the month following the
10 date of the election. An election to limit contributions
11 under this subdivision (a)(3) is irrevocable. Service
12 credits earned in any other participating system as
13 defined in Article 20 of this Code shall be considered
14 for purposes of determining a judge's eligibility to make
15 an election under this subdivision (a)(3).
16 (b) Beginning July 1, 1969, each participant is required
17 to contribute 1% of each payment of salary towards the
18 automatic increase in annuity provided in Section 18-125.1.
19 However, such contributions need not be made by any
20 participant who has elected prior to September 15, 1969, not
21 to be subject to the automatic increase in annuity
22 provisions.
23 (c) Effective July 13, 1953, each married participant
24 subject to the survivor's annuity provisions is required to
25 contribute 2 1/2% of each payment of salary, whether or not
26 he or she is required to make any other contributions under
27 this Section. Such contributions shall be made concurrently
28 with the contributions made for annuity purposes.
29 (Source: P.A. 89-136, eff. 7-14-95.)
30 Section 99. Effective date. This Act takes effect upon
31 becoming law.