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91_HB1078
LRB9102046EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 3-111, 7-141, 14-107, 14-110, 15-135, and 15-136 and
3 to amend the State Mandates Act.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Illinois Pension Code is amended by
7 changing Sections 3-111, 7-141, 14-107, 14-110, 15-135, and
8 15-136 as follows:
9 (40 ILCS 5/3-111) (from Ch. 108 1/2, par. 3-111)
10 Sec. 3-111. Pension.
11 (a) A police officer age 50 or more with 20 or more
12 years of creditable service, or at any age with 25 or more
13 years of creditable service, who is no longer in service as a
14 police officer, shall receive a pension of 1/2 of the salary
15 attached to the rank held by the officer on the police force
16 for one year immediately prior to retirement or, beginning
17 July 1, 1987 for persons terminating service on or after that
18 date, the salary attached to the rank held on the last day of
19 service or for one year prior to the last day, whichever is
20 greater. The pension shall be increased by 2% of such salary
21 for each additional year of service over 20 years, up to 30
22 years, and 1% of such salary for each additional year of
23 service over 30 years, to a maximum of 75% of such salary.
24 No pension in effect on or granted after June 30, l973 shall
25 be less than $200 per month. Beginning July 1, 1987, the
26 minimum retirement pension for a police officer having at
27 least 20 years of creditable service shall be $400 per month,
28 without regard to whether or not retirement occurred prior to
29 that date.
30 (b) A police officer mandatorily retired from service
31 due to age by operation of law, having at least 8 but less
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1 than 20 years of creditable service, shall receive a pension
2 equal to 2 1/2% of the salary attached to the rank he or she
3 held on the police force for one year immediately prior to
4 retirement or, beginning July 1, 1987 for persons terminating
5 service on or after that date, the salary attached to the
6 rank held on the last day of service or for one year prior to
7 the last day, whichever is greater, for each year of
8 creditable service.
9 A police officer who retires or is separated from service
10 having at least 8 years but less than 20 years of creditable
11 service, who is not mandatorily retired due to age by
12 operation of law, and who does not apply for a refund of
13 contributions at his or her last separation from police
14 service, shall receive a pension upon attaining age 60 equal
15 to 2.5% of the salary attached to the rank held by the police
16 officer on the police force for one year immediately prior to
17 retirement or, beginning July 1, 1987 for persons terminating
18 service on or after that date, the salary attached to the
19 rank held on the last day of service or for one year prior to
20 the last day, whichever is greater, for each year of
21 creditable service.
22 (c) A police officer no longer in service who has at
23 least one but less than 8 years of creditable service in a
24 police pension fund but meets the requirements of this
25 subsection (c) shall be eligible to receive a pension from
26 that fund equal to 2.5% of the salary attached to the rank
27 held on the last day of service under that fund or for one
28 year prior to that last day, whichever is greater, for each
29 year of creditable service in that fund. The pension shall
30 begin no earlier than upon attainment of age 60 (or upon
31 mandatory retirement from the fund by operation of law due to
32 age, if that occurs before age 60) and in no event before the
33 effective date of this amendatory Act of 1997.
34 In order to be eligible for a pension under this
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1 subsection (c), the police officer must have at least 8 years
2 of creditable service in a second police pension fund under
3 this Article and be receiving a pension under subsection (a)
4 or (b) of this Section from that second fund. The police
5 officer need not be in service on or after the effective date
6 of this amendatory Act of 1997.
7 (Source: P.A. 90-460, eff. 8-17-97.)
8 (40 ILCS 5/7-141) (from Ch. 108 1/2, par. 7-141)
9 Sec. 7-141. Retirement annuities - Conditions.
10 Retirement annuities shall be payable as hereinafter set
11 forth:
12 (a) A participating employee who, regardless of cause,
13 is separated from the service of all participating
14 municipalities and instrumentalities thereof and
15 participating instrumentalities shall be entitled to a
16 retirement annuity provided:
17 1. He is at least age 55, or in the case of a
18 person who is eligible to have his annuity calculated
19 under Section 7-142.1, he is at least age 50 or has at
20 least 25 years of creditable service as a sheriff's law
21 enforcement employee;
22 2. He is (i) an employee who was employed by any
23 participating municipality or participating
24 instrumentality which had not elected to exclude persons
25 employed in positions normally requiring performance of
26 duty for less than 1000 hours per year or was employed in
27 a position normally requiring performance of duty for 600
28 hours or more per year prior to such election by any
29 participating municipality or participating
30 instrumentality included in and subject to this Article
31 on or before the effective date of this amendatory Act of
32 1981 which made such election and is not entitled to
33 receive earnings for employment in a position normally
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1 requiring performance of duty for 600 hours or more per
2 year for any participating municipality and
3 instrumentalities thereof and participating
4 instrumentality; or (ii) an employee who was employed
5 only by a participating municipality or participating
6 instrumentality, or participating municipalities or
7 participating instrumentalities, which have elected to
8 exclude persons in positions normally requiring
9 performance of duty for less than 1000 hours per year
10 after the effective date of such exclusion or which are
11 included under and subject to the Article after the
12 effective date of this amendatory Act of 1981 and elects
13 to exclude persons in such positions, and is not entitled
14 to receive earnings for employment in a position normally
15 requiring performance of duty for 1000 hours or more per
16 year by such a participating municipality or
17 participating instrumentality;
18 3. The amount of his annuity, before the
19 application of paragraph (b) of Section 7-142 is at least
20 $10 per month;
21 4. If he first became a participating employee
22 after December 31, 1961, he has at least 8 years of
23 service.
24 (b) Retirement annuities shall be payable:
25 1. As provided in Section 7-119;
26 2. Except as provided in item 3, upon receipt by
27 the fund of a written application by the board. The
28 effective date may be not more than one year prior to the
29 date of the receipt by the fund of the application;
30 3. Upon attainment of age 70 1/2 if (i) the member
31 has not submitted an application for the annuity, (ii)
32 the member has at least 8 years of service credit and is
33 no longer in service, (iii) the pension amount is at
34 least $30 per month, and (iv) the Fund is able to locate
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1 the member;
2 4. To the beneficiary of the deceased annuitant for
3 the unpaid amount accrued to date of death, if any.
4 (Source: P.A. 87-740.)
5 (40 ILCS 5/14-107) (from Ch. 108 1/2, par. 14-107)
6 Sec. 14-107. Retirement annuity - service and age -
7 conditions. A member is entitled to a retirement annuity
8 after having at least 8 years of creditable service. A
9 member who has at least 35 years of creditable service, or at
10 least 25 years of eligible creditable service as defined in
11 Section 14-110, may claim his retirement annuity at any age.
12 A member having at least 8 years of creditable service but
13 less than 35 may claim his retirement annuity upon or after
14 attainment of age 60. A member upon or after attainment of
15 age 55 having at least 30 years of creditable service may
16 elect to receive the lower retirement annuity provided in
17 paragraph (c) of Section 14-108 of this Code. The allowance
18 shall begin with the first full calendar month specified in
19 the member's application therefor, the first day of which
20 shall not be before the date of withdrawal as approved by the
21 board. Regardless of the date of withdrawal, the allowance
22 need not begin within one year of application therefor.
23 (Source: P.A. 82-342.)
24 (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
25 Sec. 14-110. Alternative retirement annuity.
26 (a) Any member who has withdrawn from service with not
27 less than 20 years of eligible creditable service and has
28 attained age 55, and any member who has withdrawn from
29 service with not less than 25 years of eligible creditable
30 service and has attained age 50, regardless of whether the
31 attainment of age 55 either of the specified ages occurs
32 while the member is still in service, and any member who has
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1 withdrawn from service with at least 25 years of eligible
2 creditable service, regardless of age, shall be entitled to
3 receive at the option of the member, in lieu of the regular
4 or minimum retirement annuity, a retirement annuity computed
5 as follows:
6 (i) for periods of service as a noncovered
7 employee, 2 1/4% of final average compensation for each
8 of the first 10 years of creditable service, 2 1/2% for
9 each year above 10 years to and including 20 years of
10 creditable service, and 2 3/4% for each year of
11 creditable service above 20 years; and
12 (ii) for periods of eligible creditable service as
13 a covered employee, 1.67% of final average compensation
14 for each of the first 10 years of such service, 1.90% for
15 each of the next 10 years of such service, 2.10% for each
16 year of such service in excess of 20 but not exceeding
17 30, and 2.30% for each year in excess of 30.
18 Such annuity shall be subject to a maximum of 75% of
19 final average compensation. These rates shall not be
20 applicable to any service performed by a member as a covered
21 employee which is not eligible creditable service. Service
22 as a covered employee which is not eligible creditable
23 service shall be subject to the rates and provisions of
24 Section 14-108.
25 (b) For the purpose of this Section, "eligible
26 creditable service" means creditable service resulting from
27 service in one or more of the following positions:
28 (1) State policeman;
29 (2) fire fighter in the fire protection service of
30 a department;
31 (3) air pilot;
32 (4) special agent;
33 (5) investigator for the Secretary of State;
34 (6) conservation police officer;
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1 (7) investigator for the Department of Revenue;
2 (8) security employee of the Department of Human
3 Services;
4 (9) Central Management Services security police
5 officer;
6 (10) security employee of the Department of
7 Corrections;
8 (11) dangerous drugs investigator;
9 (12) investigator for the Department of State
10 Police;
11 (13) investigator for the Office of the Attorney
12 General;
13 (14) controlled substance inspector;
14 (15) investigator for the Office of the State's
15 Attorneys Appellate Prosecutor;
16 (16) Commerce Commission police officer;
17 (17) arson investigator.
18 A person employed in one of the positions specified in
19 this subsection is entitled to eligible creditable service
20 for service credit earned under this Article while undergoing
21 the basic police training course approved by the Illinois
22 Local Governmental Law Enforcement Officers Training
23 Standards Board, if completion of that training is required
24 of persons serving in that position. For the purposes of
25 this Code, service during the required basic police training
26 course shall be deemed performance of the duties of the
27 specified position, even though the person is not a sworn
28 peace officer at the time of the training.
29 (c) For the purposes of this Section:
30 (1) The term "state policeman" includes any title
31 or position in the Department of State Police that is
32 held by an individual employed under the State Police
33 Act.
34 (2) The term "fire fighter in the fire protection
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1 service of a department" includes all officers in such
2 fire protection service including fire chiefs and
3 assistant fire chiefs.
4 (3) The term "air pilot" includes any employee
5 whose official job description on file in the Department
6 of Central Management Services, or in the department by
7 which he is employed if that department is not covered by
8 the Personnel Code, states that his principal duty is the
9 operation of aircraft, and who possesses a pilot's
10 license; however, the change in this definition made by
11 this amendatory Act of 1983 shall not operate to exclude
12 any noncovered employee who was an "air pilot" for the
13 purposes of this Section on January 1, 1984.
14 (4) The term "special agent" means any person who
15 by reason of employment by the Division of Narcotic
16 Control, the Bureau of Investigation or, after July 1,
17 1977, the Division of Criminal Investigation, the
18 Division of Internal Investigation or any other Division
19 or organizational entity in the Department of State
20 Police is vested by law with duties to maintain public
21 order, investigate violations of the criminal law of this
22 State, enforce the laws of this State, make arrests and
23 recover property. The term "special agent" includes any
24 title or position in the Department of State Police that
25 is held by an individual employed under the State Police
26 Act.
27 (5) The term "investigator for the Secretary of
28 State" means any person employed by the Office of the
29 Secretary of State and vested with such investigative
30 duties as render him ineligible for coverage under the
31 Social Security Act by reason of Sections 218(d)(5)(A),
32 218(d)(8)(D) and 218(l)(1) of that Act.
33 A person who became employed as an investigator for
34 the Secretary of State between January 1, 1967 and
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1 December 31, 1975, and who has served as such until
2 attainment of age 60, either continuously or with a
3 single break in service of not more than 3 years
4 duration, which break terminated before January 1, 1976,
5 shall be entitled to have his retirement annuity
6 calculated in accordance with subsection (a),
7 notwithstanding that he has less than 20 years of credit
8 for such service.
9 (6) The term "Conservation Police Officer" means
10 any person employed by the Division of Law Enforcement of
11 the Department of Natural Resources and vested with such
12 law enforcement duties as render him ineligible for
13 coverage under the Social Security Act by reason of
14 Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of
15 that Act. The term "Conservation Police Officer"
16 includes the positions of Chief Conservation Police
17 Administrator and Assistant Conservation Police
18 Administrator.
19 (7) The term "investigator for the Department of
20 Revenue" means any person employed by the Department of
21 Revenue and vested with such investigative duties as
22 render him ineligible for coverage under the Social
23 Security Act by reason of Sections 218(d)(5)(A),
24 218(d)(8)(D) and 218(l)(1) of that Act.
25 (8) The term "security employee of the Department
26 of Human Services" means any person employed by the
27 Department of Human Services who is employed at the
28 Chester Mental Health Center and has daily contact with
29 the residents thereof, or who is a mental health police
30 officer. "Mental health police officer" means any person
31 employed by the Department of Human Services in a
32 position pertaining to the Department's mental health and
33 developmental disabilities functions who is vested with
34 such law enforcement duties as render the person
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1 ineligible for coverage under the Social Security Act by
2 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
3 218(l)(1) of that Act.
4 (9) "Central Management Services security police
5 officer" means any person employed by the Department of
6 Central Management Services who is vested with such law
7 enforcement duties as render him ineligible for coverage
8 under the Social Security Act by reason of Sections
9 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
10 (10) The term "security employee of the Department
11 of Corrections" means any employee of the Department of
12 Corrections or the former Department of Personnel, and
13 any member or employee of the Prisoner Review Board, who
14 has daily contact with inmates by working within a
15 correctional facility or who is a parole officer or an
16 employee who has direct contact with committed persons in
17 the performance of his or her job duties.
18 (11) The term "dangerous drugs investigator" means
19 any person who is employed as such by the Department of
20 Human Services.
21 (12) The term "investigator for the Department of
22 State Police" means a person employed by the Department
23 of State Police who is vested under Section 4 of the
24 Narcotic Control Division Abolition Act with such law
25 enforcement powers as render him ineligible for coverage
26 under the Social Security Act by reason of Sections
27 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
28 (13) "Investigator for the Office of the Attorney
29 General" means any person who is employed as such by the
30 Office of the Attorney General and is vested with such
31 investigative duties as render him ineligible for
32 coverage under the Social Security Act by reason of
33 Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that
34 Act. For the period before January 1, 1989, the term
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1 includes all persons who were employed as investigators
2 by the Office of the Attorney General, without regard to
3 social security status.
4 (14) "Controlled substance inspector" means any
5 person who is employed as such by the Department of
6 Professional Regulation and is vested with such law
7 enforcement duties as render him ineligible for coverage
8 under the Social Security Act by reason of Sections
9 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
10 The term "controlled substance inspector" includes the
11 Program Executive of Enforcement and the Assistant
12 Program Executive of Enforcement.
13 (15) The term "investigator for the Office of the
14 State's Attorneys Appellate Prosecutor" means a person
15 employed in that capacity on a full time basis under the
16 authority of Section 7.06 of the State's Attorneys
17 Appellate Prosecutor's Act.
18 (16) "Commerce Commission police officer" means any
19 person employed by the Illinois Commerce Commission who
20 is vested with such law enforcement duties as render him
21 ineligible for coverage under the Social Security Act by
22 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
23 218(l)(1) of that Act.
24 (17) "Arson investigator" means any person who is
25 employed as such by the Office of the State Fire Marshal
26 and is vested with such law enforcement duties as render
27 the person ineligible for coverage under the Social
28 Security Act by reason of Sections 218(d)(5)(A),
29 218(d)(8)(D), and 218(l)(1) of that Act. A person who
30 was employed as an arson investigator on January 1, 1995
31 and is no longer in service but not yet receiving a
32 retirement annuity may convert his or her creditable
33 service for employment as an arson investigator into
34 eligible creditable service by paying to the System the
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1 difference between the employee contributions actually
2 paid for that service and the amounts that would have
3 been contributed if the applicant were contributing at
4 the rate applicable to persons with the same social
5 security status earning eligible creditable service on
6 the date of application.
7 (d) A security employee of the Department of
8 Corrections, and a security employee of the Department of
9 Human Services who is not a mental health police officer,
10 shall not be eligible for the alternative retirement annuity
11 provided by this Section unless he or she meets the following
12 minimum age and service requirements at the time of
13 retirement:
14 (i) 25 years of eligible creditable service and age
15 55; or
16 (ii) beginning January 1, 1987, 25 years of
17 eligible creditable service and age 54, or 24 years of
18 eligible creditable service and age 55; or
19 (iii) beginning January 1, 1988, 25 years of
20 eligible creditable service and age 53, or 23 years of
21 eligible creditable service and age 55; or
22 (iv) beginning January 1, 1989, 25 years of
23 eligible creditable service and age 52, or 22 years of
24 eligible creditable service and age 55; or
25 (v) beginning January 1, 1990, 25 years of eligible
26 creditable service and age 51, or 21 years of eligible
27 creditable service and age 55; or
28 (vi) beginning January 1, 1991, 25 years of
29 eligible creditable service and age 50, or 20 years of
30 eligible creditable service and age 55.
31 Persons who have service credit under Article 16 of this
32 Code for service as a security employee of the Department of
33 Corrections in a position requiring certification as a
34 teacher may count such service toward establishing their
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1 eligibility under the service requirements of this Section;
2 but such service may be used only for establishing such
3 eligibility, and not for the purpose of increasing or
4 calculating any benefit.
5 (e) If a member enters military service while working in
6 a position in which eligible creditable service may be
7 earned, and returns to State service in the same or another
8 such position, and fulfills in all other respects the
9 conditions prescribed in this Article for credit for military
10 service, such military service shall be credited as eligible
11 creditable service for the purposes of the retirement annuity
12 prescribed in this Section.
13 (f) For purposes of calculating retirement annuities
14 under this Section, periods of service rendered after
15 December 31, 1968 and before October 1, 1975 as a covered
16 employee in the position of special agent, conservation
17 police officer, mental health police officer, or investigator
18 for the Secretary of State, shall be deemed to have been
19 service as a noncovered employee, provided that the employee
20 pays to the System prior to retirement an amount equal to (1)
21 the difference between the employee contributions that would
22 have been required for such service as a noncovered employee,
23 and the amount of employee contributions actually paid, plus
24 (2) if payment is made after July 31, 1987, regular interest
25 on the amount specified in item (1) from the date of service
26 to the date of payment.
27 For purposes of calculating retirement annuities under
28 this Section, periods of service rendered after December 31,
29 1968 and before January 1, 1982 as a covered employee in the
30 position of investigator for the Department of Revenue shall
31 be deemed to have been service as a noncovered employee,
32 provided that the employee pays to the System prior to
33 retirement an amount equal to (1) the difference between the
34 employee contributions that would have been required for such
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1 service as a noncovered employee, and the amount of employee
2 contributions actually paid, plus (2) if payment is made
3 after January 1, 1990, regular interest on the amount
4 specified in item (1) from the date of service to the date of
5 payment.
6 (g) A State policeman may elect, not later than January
7 1, 1990, to establish eligible creditable service for up to
8 10 years of his service as a policeman under Article 3, by
9 filing a written election with the Board, accompanied by
10 payment of an amount to be determined by the Board, equal to
11 (i) the difference between the amount of employee and
12 employer contributions transferred to the System under
13 Section 3-110.5, and the amounts that would have been
14 contributed had such contributions been made at the rates
15 applicable to State policemen, plus (ii) interest thereon at
16 the effective rate for each year, compounded annually, from
17 the date of service to the date of payment.
18 Subject to the limitation in subsection (i), a State
19 policeman may elect, not later than July 1, 1993, to
20 establish eligible creditable service for up to 10 years of
21 his service as a member of the County Police Department under
22 Article 9, by filing a written election with the Board,
23 accompanied by payment of an amount to be determined by the
24 Board, equal to (i) the difference between the amount of
25 employee and employer contributions transferred to the System
26 under Section 9-121.10 and the amounts that would have been
27 contributed had those contributions been made at the rates
28 applicable to State policemen, plus (ii) interest thereon at
29 the effective rate for each year, compounded annually, from
30 the date of service to the date of payment.
31 (h) Subject to the limitation in subsection (i), a State
32 policeman or investigator for the Secretary of State may
33 elect to establish eligible creditable service for up to 12
34 years of his service as a policeman under Article 5, by
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1 filing a written election with the Board on or before January
2 31, 1992, and paying to the System by January 31, 1994 an
3 amount to be determined by the Board, equal to (i) the
4 difference between the amount of employee and employer
5 contributions transferred to the System under Section 5-236,
6 and the amounts that would have been contributed had such
7 contributions been made at the rates applicable to State
8 policemen, plus (ii) interest thereon at the effective rate
9 for each year, compounded annually, from the date of service
10 to the date of payment.
11 Subject to the limitation in subsection (i), a State
12 policeman, conservation police officer, or investigator for
13 the Secretary of State may elect to establish eligible
14 creditable service for up to 10 years of service as a
15 sheriff's law enforcement employee under Article 7, by filing
16 a written election with the Board on or before January 31,
17 1993, and paying to the System by January 31, 1994 an amount
18 to be determined by the Board, equal to (i) the difference
19 between the amount of employee and employer contributions
20 transferred to the System under Section 7-139.7, and the
21 amounts that would have been contributed had such
22 contributions been made at the rates applicable to State
23 policemen, plus (ii) interest thereon at the effective rate
24 for each year, compounded annually, from the date of service
25 to the date of payment.
26 (i) The total amount of eligible creditable service
27 established by any person under subsections (g), (h), (j),
28 (k), and (l) of this Section shall not exceed 12 years.
29 (j) Subject to the limitation in subsection (i), an
30 investigator for the Office of the State's Attorneys
31 Appellate Prosecutor or a controlled substance inspector may
32 elect to establish eligible creditable service for up to 10
33 years of his service as a policeman under Article 3 or a
34 sheriff's law enforcement employee under Article 7, by filing
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1 a written election with the Board, accompanied by payment of
2 an amount to be determined by the Board, equal to (1) the
3 difference between the amount of employee and employer
4 contributions transferred to the System under Section 3-110.6
5 or 7-139.8, and the amounts that would have been contributed
6 had such contributions been made at the rates applicable to
7 State policemen, plus (2) interest thereon at the effective
8 rate for each year, compounded annually, from the date of
9 service to the date of payment.
10 (k) Subject to the limitation in subsection (i) of this
11 Section, an alternative formula employee may elect to
12 establish eligible creditable service for periods spent as a
13 full-time law enforcement officer or full-time corrections
14 officer employed by the federal government or by a state or
15 local government located outside of Illinois, for which
16 credit is not held in any other public employee pension fund
17 or retirement system. To obtain this credit, the applicant
18 must file a written application with the Board by March 31,
19 1998, accompanied by evidence of eligibility acceptable to
20 the Board and payment of an amount to be determined by the
21 Board, equal to (1) employee contributions for the credit
22 being established, based upon the applicant's salary on the
23 first day as an alternative formula employee after the
24 employment for which credit is being established and the
25 rates then applicable to alternative formula employees, plus
26 (2) an amount determined by the Board to be the employer's
27 normal cost of the benefits accrued for the credit being
28 established, plus (3) regular interest on the amounts in
29 items (1) and (2) from the first day as an alternative
30 formula employee after the employment for which credit is
31 being established to the date of payment.
32 (l) Subject to the limitation in subsection (i), a
33 security employee of the Department of Corrections may elect,
34 not later than July 1, 1998, to establish eligible creditable
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1 service for up to 10 years of his or her service as a
2 policeman under Article 3, by filing a written election with
3 the Board, accompanied by payment of an amount to be
4 determined by the Board, equal to (i) the difference between
5 the amount of employee and employer contributions transferred
6 to the System under Section 3-110.5, and the amounts that
7 would have been contributed had such contributions been made
8 at the rates applicable to security employees of the
9 Department of Corrections, plus (ii) interest thereon at the
10 effective rate for each year, compounded annually, from the
11 date of service to the date of payment.
12 (Source: P.A. 89-136, eff. 7-14-95; 89-445, eff. 2-7-96;
13 89-507, eff. 7-1-97; 90-32, eff. 6-27-97; revised 7-10-98.)
14 (40 ILCS 5/15-135) (from Ch. 108 1/2, par. 15-135)
15 Sec. 15-135. Retirement annuities - Conditions.
16 (a) A participant who retires in one of the following
17 specified years with the specified amount of service is
18 entitled to a retirement annuity at any age under the
19 retirement program applicable to the participant:
20 35 years if retirement is in 1997 or before;
21 34 years if retirement is in 1998;
22 33 years if retirement is in 1999;
23 32 years if retirement is in 2000;
24 31 years if retirement is in 2001;
25 30 years if retirement is in 2002;
26 35 years if retirement is in 2003 or later.
27 A participant with 8 or more years of service after
28 September 1, 1941, is entitled to a retirement annuity on or
29 after attainment of age 55.
30 A participant with at least 5 but less than 8 years of
31 service after September 1, 1941, is entitled to a retirement
32 annuity on or after attainment of age 62.
33 A participant who has at least 25 years of service in
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1 this system as a police officer or firefighter is entitled to
2 a retirement annuity at any age on or after the attainment of
3 age 50, if Rule 4 of Section 15-136 is applicable to the
4 participant.
5 (b) The annuity payment period shall begin on the date
6 specified by the participant submitting a written
7 application, which date shall not be prior to termination of
8 employment or more than one year before the application is
9 received by the board; however, if the participant is not an
10 employee of an employer participating in this System or in a
11 participating system as defined in Article 20 of this Code on
12 April 1 of the calendar year next following the calendar year
13 in which the participant attains age 70 1/2, the annuity
14 payment period shall begin on that date regardless of whether
15 an application has been filed.
16 (c) An annuity is not payable if the amount provided
17 under Section 15-136 is less than $10 per month.
18 (Source: P.A. 90-65, eff. 7-7-97; 90-766, eff. 8-14-98.)
19 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
20 Sec. 15-136. Retirement annuities - Amount. The
21 provisions of this Section 15-136 apply only to those
22 participants who are participating in the traditional benefit
23 package or the portable benefit package and do not apply to
24 participants who are participating in the self-managed plan.
25 (a) The amount of a participant's retirement annuity,
26 expressed in the form of a single-life annuity, shall be
27 determined by whichever of the following rules is applicable
28 and provides the largest annuity:
29 Rule 1: The retirement annuity shall be 1.67% of final
30 rate of earnings for each of the first 10 years of service,
31 1.90% for each of the next 10 years of service, 2.10% for
32 each year of service in excess of 20 but not exceeding 30,
33 and 2.30% for each year in excess of 30; or for persons who
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1 retire on or after January 1, 1998, 2.2% of the final rate of
2 earnings for each year of service.
3 Rule 2: The retirement annuity shall be the sum of the
4 following, determined from amounts credited to the
5 participant in accordance with the actuarial tables and the
6 prescribed rate of interest in effect at the time the
7 retirement annuity begins:
8 (i) the normal annuity which can be provided on an
9 actuarially equivalent basis, by the accumulated normal
10 contributions as of the date the annuity begins; and
11 (ii) an annuity from employer contributions of an
12 amount which can be provided on an actuarially equivalent
13 basis from the accumulated normal contributions made by
14 the participant under Section 15-113.6 and Section
15 15-113.7 plus 1.4 times all other accumulated normal
16 contributions made by the participant.
17 With respect to a police officer or firefighter who retires
18 on or after the effective date of this amendatory Act of
19 1998, the accumulated normal contributions taken into account
20 under clauses (i) and (ii) of this Rule 2 shall include the
21 additional normal contributions made by the police officer or
22 firefighter under Section 15-157(a).
23 Rule 3: The retirement annuity of a participant who is
24 employed at least one-half time during the period on which
25 his or her final rate of earnings is based, shall be equal to
26 the participant's years of service not to exceed 30,
27 multiplied by (1) $96 if the participant's final rate of
28 earnings is less than $3,500, (2) $108 if the final rate of
29 earnings is at least $3,500 but less than $4,500, (3) $120 if
30 the final rate of earnings is at least $4,500 but less than
31 $5,500, (4) $132 if the final rate of earnings is at least
32 $5,500 but less than $6,500, (5) $144 if the final rate of
33 earnings is at least $6,500 but less than $7,500, (6) $156 if
34 the final rate of earnings is at least $7,500 but less than
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1 $8,500, (7) $168 if the final rate of earnings is at least
2 $8,500 but less than $9,500, and (8) $180 if the final rate
3 of earnings is $9,500 or more, except that the annuity for
4 those persons having made an election under Section
5 15-154(a-1) shall be calculated and payable under the
6 portable retirement benefit program pursuant to the
7 provisions of Section 15-136.4.
8 Rule 4: A participant who is at least age 50 and has 25
9 or more years of service as a police officer or firefighter
10 regardless of age, and a participant who is age 55 or over
11 and has at least 20 but less than 25 years of service as a
12 police officer or firefighter, shall be entitled to a
13 retirement annuity of 2 1/4% of the final rate of earnings
14 for each of the first 10 years of service as a police officer
15 or firefighter, 2 1/2% for each of the next 10 years of
16 service as a police officer or firefighter, and 2 3/4% for
17 each year of service as a police officer or firefighter in
18 excess of 20. The retirement annuity for all other service
19 shall be computed under Rule 1.
20 For purposes of this Rule 4, a participant's service as a
21 firefighter shall also include the following:
22 (i) service that is performed while the person is
23 an employee under subsection (h) of Section 15-107; and
24 (ii) in the case of an individual who was a
25 participating employee employed in the fire department of
26 the University of Illinois's Champaign-Urbana campus
27 immediately prior to the elimination of that fire
28 department and who immediately after the elimination of
29 that fire department transferred to another job with the
30 University of Illinois, service performed as an employee
31 of the University of Illinois in a position other than
32 police officer or firefighter, from the date of that
33 transfer until the employee's next termination of service
34 with the University of Illinois.
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1 (b) The retirement annuity provided under Rules 1 and 3
2 above shall be reduced by 1/2 of 1% for each month the
3 participant is under age 60 at the time of retirement.
4 However, this reduction shall not apply in the following
5 cases:
6 (1) For a disabled participant whose disability
7 benefits have been discontinued because he or she has
8 exhausted eligibility for disability benefits under
9 clause (6) of Section 15-152;
10 (2) For a participant who has at least the number
11 of years of service required to retire at any age under
12 subsection (a) of Section 15-135; or
13 (3) For that portion of a retirement annuity which
14 has been provided on account of service of the
15 participant during periods when he or she performed the
16 duties of a police officer or firefighter, if these
17 duties were performed for at least 5 years immediately
18 preceding the date the retirement annuity is to begin.
19 (c) The maximum retirement annuity provided under Rules
20 1, 2, and 4 shall be the lesser of (1) the annual limit of
21 benefits as specified in Section 415 of the Internal Revenue
22 Code of 1986, as such Section may be amended from time to
23 time and as such benefit limits shall be adjusted by the
24 Commissioner of Internal Revenue, and (2) 80% of final rate
25 of earnings.
26 (d) An annuitant whose status as an employee terminates
27 after August 14, 1969 shall receive automatic increases in
28 his or her retirement annuity as follows:
29 Effective January 1 immediately following the date the
30 retirement annuity begins, the annuitant shall receive an
31 increase in his or her monthly retirement annuity of 0.125%
32 of the monthly retirement annuity provided under Rule 1, Rule
33 2, Rule 3, or Rule 4, contained in this Section, multiplied
34 by the number of full months which elapsed from the date the
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1 retirement annuity payments began to January 1, 1972, plus
2 0.1667% of such annuity, multiplied by the number of full
3 months which elapsed from January 1, 1972, or the date the
4 retirement annuity payments began, whichever is later, to
5 January 1, 1978, plus 0.25% of such annuity multiplied by the
6 number of full months which elapsed from January 1, 1978, or
7 the date the retirement annuity payments began, whichever is
8 later, to the effective date of the increase.
9 The annuitant shall receive an increase in his or her
10 monthly retirement annuity on each January 1 thereafter
11 during the annuitant's life of 3% of the monthly annuity
12 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
13 this Section. The change made under this subsection by P.A.
14 81-970 is effective January 1, 1980 and applies to each
15 annuitant whose status as an employee terminates before or
16 after that date.
17 Beginning January 1, 1990, all automatic annual increases
18 payable under this Section shall be calculated as a
19 percentage of the total annuity payable at the time of the
20 increase, including all increases previously granted under
21 this Article.
22 The change made in this subsection by P.A. 85-1008 is
23 effective January 26, 1988, and is applicable without regard
24 to whether status as an employee terminated before that date.
25 (e) If, on January 1, 1987, or the date the retirement
26 annuity payment period begins, whichever is later, the sum of
27 the retirement annuity provided under Rule 1 or Rule 2 of
28 this Section and the automatic annual increases provided
29 under the preceding subsection or Section 15-136.1, amounts
30 to less than the retirement annuity which would be provided
31 by Rule 3, the retirement annuity shall be increased as of
32 January 1, 1987, or the date the retirement annuity payment
33 period begins, whichever is later, to the amount which would
34 be provided by Rule 3 of this Section. Such increased amount
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1 shall be considered as the retirement annuity in determining
2 benefits provided under other Sections of this Article. This
3 paragraph applies without regard to whether status as an
4 employee terminated before the effective date of this
5 amendatory Act of 1987, provided that the annuitant was
6 employed at least one-half time during the period on which
7 the final rate of earnings was based.
8 (f) A participant is entitled to such additional annuity
9 as may be provided on an actuarially equivalent basis, by any
10 accumulated additional contributions to his or her credit.
11 However, the additional contributions made by the participant
12 toward the automatic increases in annuity provided under this
13 Section shall not be taken into account in determining the
14 amount of such additional annuity.
15 (g) If, (1) by law, a function of a governmental unit,
16 as defined by Section 20-107 of this Code, is transferred in
17 whole or in part to an employer, and (2) a participant
18 transfers employment from such governmental unit to such
19 employer within 6 months after the transfer of the function,
20 and (3) the sum of (A) the annuity payable to the participant
21 under Rule 1, 2, or 3 of this Section (B) all proportional
22 annuities payable to the participant by all other retirement
23 systems covered by Article 20, and (C) the initial primary
24 insurance amount to which the participant is entitled under
25 the Social Security Act, is less than the retirement annuity
26 which would have been payable if all of the participant's
27 pension credits validated under Section 20-109 had been
28 validated under this system, a supplemental annuity equal to
29 the difference in such amounts shall be payable to the
30 participant.
31 (h) On January 1, 1981, an annuitant who was receiving a
32 retirement annuity on or before January 1, 1971 shall have
33 his or her retirement annuity then being paid increased $1
34 per month for each year of creditable service. On January 1,
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1 1982, an annuitant whose retirement annuity began on or
2 before January 1, 1977, shall have his or her retirement
3 annuity then being paid increased $1 per month for each year
4 of creditable service.
5 (i) On January 1, 1987, any annuitant whose retirement
6 annuity began on or before January 1, 1977, shall have the
7 monthly retirement annuity increased by an amount equal to 8¢
8 per year of creditable service times the number of years that
9 have elapsed since the annuity began.
10 (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
11 eff. 8-16-97; 90-576, eff. 3-31-98; 90-655, eff. 7-30-98;
12 90-766, eff. 8-14-98.)
13 Section 90. The State Mandates Act is amended by adding
14 Section 8.23 as follows:
15 (30 ILCS 805/8.23 new)
16 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
17 and 8 of this Act, no reimbursement by the State is required
18 for the implementation of any mandate created by this
19 amendatory Act of the 91st General Assembly.
20 Section 99. Effective date. This Act takes effect upon
21 becoming law.