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| [ Introduced ] | [ Engrossed ] | [ Senate Amendment 001 ] |
91_HB1582enr HB1582 Enrolled LRB9101659EGfg 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 14-107, 14-108, 14-114, 16-132, 16-133, and 6 16-133.1 as follows: 7 (40 ILCS 5/14-107) (from Ch. 108 1/2, par. 14-107) 8 Sec. 14-107. Retirement annuity - service and age - 9 conditions. A member is entitled to a retirement annuity 10 after having at least 8 years of creditable service. 11 A member who has at least 35 years of creditable service 12 may claim his or her retirement annuity at any age. A member 13 having at least 8 years of creditable service but less than 14 35 may claim his or her retirement annuity upon or after 15 attainment of age 60 or, beginning January 1, 2001, any 16 lesser age which, when added to the number of years of his or 17 her creditable service, equals at least 85. A member upon or 18 after attainment of age 55 having at least 25 years30 years19 of creditable service (30 years if retirement is before 20 January 1, 2001) may elect to receive the lower retirement 21 annuity provided in paragraph (c) of Section 14-108 of this 22 Code. For purposes of the rule of 85, portions of years 23 shall be counted in whole months. 24 The allowance shall begin with the first full calendar 25 month specified in the member's application therefor, the 26 first day of which shall not be before the date of withdrawal 27 as approved by the board. Regardless of the date of 28 withdrawal, the allowance need not begin within one year of 29 application therefor. 30 (Source: P.A. 82-342.) HB1582 Enrolled -2- LRB9101659EGfg 1 (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108) 2 Sec. 14-108. Amount of retirement annuity. A member who 3 has contributed to the System for at least 12 months shall be 4 entitled to a prior service annuity for each year of 5 certified prior service credited to him, except that a member 6 shall receive 1/3 of the prior service annuity for each year 7 of service for which contributions have been made and all of 8 such annuity shall be payable after the member has made 9 contributions for a period of 3 years. Proportionate amounts 10 shall be payable for service of less than a full year after 11 completion of at least 12 months. 12 The total period of service to be considered in 13 establishing the measure of prior service annuity shall 14 include service credited in the Teachers' Retirement System 15 of the State of Illinois and the State Universities 16 Retirement System for which contributions have been made by 17 the member to such systems; provided that at least 1 year of 18 the total period of 3 years prescribed for the allowance of a 19 full measure of prior service annuity shall consist of 20 membership service in this system for which credit has been 21 granted. 22 (a) In the case of a member who retires on or after 23 January 1, 1998 and is a noncovered employee, the retirement 24 annuity for membership service and prior service shall be 25 2.2% of final average compensation for each year of service. 26 Any service credit established as a covered employee shall be 27 computed as stated in paragraph (b). 28 (b) In the case of a member who retires on or after 29 January 1, 1998 and is a covered employee, the retirement 30 annuity for membership service and prior service shall be 31 computed as stated in paragraph (a) for all service credit 32 established as a noncovered employee; for service credit 33 established as a covered employee it shall be 1.67% of final 34 average compensation for each year of service. HB1582 Enrolled -3- LRB9101659EGfg 1 (c) For a memberwith 30 but less than 35 years of2creditable serviceretiring after attaining age 55 but before 3 age 60 with at least 30 but less than 35 years of creditable 4 service if retirement is before January 1, 2001, or with at 5 least 25 but less than 30 years of creditable service if 6 retirement is on or after January 1, 2001, the retirement 7 annuity shall be reduced by 1/2 of 1% for each month that the 8 member's age is under age 60 at the time of retirement. 9 (d) A retirement annuity shall not exceed 75% of final 10 average compensation, subject to such extension as may result 11 from the application of Section 14-114 or Section 14-115. 12 (e) The retirement annuity payable to any covered 13 employee who is a member of the System and in service on 14 January 1, 1969, or in service thereafter in 1969 as a result 15 of legislation enacted by the Illinois General Assembly 16 transferring the member to State employment from county 17 employment in a county Department of Public Aid in counties 18 of 3,000,000 or more population, under a plan of coordination 19 with the Old Age, Survivors and Disability provisions 20 thereof, if not fully insured for Old Age Insurance payments 21 under the Federal Old Age, Survivors and Disability Insurance 22 provisions at the date of acceptance of a retirement annuity, 23 shall not be less than the amount for which the member would 24 have been eligible if coordination were not applicable. 25 (f) The retirement annuity payable to any covered 26 employee who is a member of the System and in service on 27 January 1, 1969, or in service thereafter in 1969 as a result 28 of the legislation designated in the immediately preceding 29 paragraph, if fully insured for Old Age Insurance payments 30 under the Federal Social Security Act at the date of 31 acceptance of a retirement annuity, shall not be less than an 32 amount which when added to the Primary Insurance Benefit 33 payable to the member upon attainment of age 65 under such 34 Federal Act, will equal the annuity which would otherwise be HB1582 Enrolled -4- LRB9101659EGfg 1 payable if the coordinated plan of coverage were not 2 applicable. 3 (g) In the case of a member who is a noncovered 4 employee, the retirement annuity for membership service as a 5 security employee of the Department of Corrections or 6 security employee of the Department of Human Services shall 7 be 1.9% of final average compensation for each of the first 8 10 years of service,;2.1% for each of the next 10 years of 9 service,;2.25% for each year of service in excess of 20 but 10 not exceeding 30,;and 2.5% for each year in excess of 30; 11 except that the annuity may be calculated under subsection 12 (a) rather than this subsection (g) if the resulting annuity 13 is greater. 14 (h) In the case of a member who is a covered employee, 15 the retirement annuity for membership service as a security 16 employee of the Department of Corrections or security 17 employee of the Department of Human Services shall be 1.67% 18 of final average compensation for each of the first 10 years 19 of service,;1.90% for each of the next 10 years of service,;20 2.10% for each year of service in excess of 20 but not 21 exceeding 30,;and 2.30% for each year in excess of 30. 22 (i) For the purposes of this Section and Section 14-133 23 of this Act, the term "security employee of the Department of 24 Corrections" and the term "security employee of the 25 Department of Human Services" shall have the meanings 26 ascribed to them in subsection (c) of Section 14-110. 27 (j) The retirement annuity computed pursuant to 28 paragraphs (g) or (h) shall be applicable only to those 29 security employees of the Department of Corrections and 30 security employees of the Department of Human Services who 31 have at least 20 years of membership service and who are not 32 eligible for the alternative retirement annuity provided 33 under Section 14-110. However, persons transferring to this 34 System under Section 14-108.2 who have service credit under HB1582 Enrolled -5- LRB9101659EGfg 1 Article 16 of this Code may count such service toward 2 establishing their eligibility under the 20-year service 3 requirement of this subsection; but such service may be used 4 only for establishing such eligibility, and not for the 5 purpose of increasing or calculating any benefit. 6 (k) (Blank). 7 (l) The changes to this Section made by this amendatory 8 Act of 1997 (changing certain retirement annuity formulas 9 from a stepped rate to a flat rate) apply to members who 10 retire on or after January 1, 1998, without regard to whether 11 employment terminated before the effective date of this 12 amendatory Act of 1997. An annuity shall not be calculated 13 in steps by using the new flat rate for some steps and the 14 superseded stepped rate for other steps of the same type of 15 service. 16 (Source: P.A. 89-507, eff. 7-1-97; 90-65, eff. 7-7-97; 17 90-448, eff. 8-16-97; 90-655, eff. 7-30-98.) 18 (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114) 19 Sec. 14-114. Automatic increase in retirement annuity. 20 (a) Any person receiving a retirement annuity under this 21 Article who retires having attained age 60, or who retires 22 before age 60 having at least 35 years of creditable service, 23 or who retires on or after January 1, 2001 at an age which, 24 when added to the number of years of his or her creditable 25 service, equals at least 85, shall, on January 1,next 26 following the first full year of retirement, have the amount 27 of the then fixed and payable monthly retirement annuity 28 increased 3%. Any person receiving a retirement annuity 29 under this Article who retires before attainment of age 60 30 and with less than (i) 35 years of creditable service if 31 retirement is before January 1, 2001, or (ii) the number of 32 years of creditable service which, when added to the member's 33 age, would equal 85, if retirement is on or after January 1, HB1582 Enrolled -6- LRB9101659EGfg 1 2001, shall have the amount of the fixed and payable 2 retirement annuity increased by 3% on the January 1 occurring 3 on or next following (1) attainment of age 60, or (2) the 4 first anniversary of retirement, whichever occurs later. 5 However, for persons who receive the alternative retirement 6 annuity under Section 14-110, references in this subsection 7 (a) to attainment of age 60 shall be deemed to refer to 8 attainment of age 55. For a person receiving early 9 retirement incentives under Section 14-108.3 whose retirement 10 annuity began after January 1, 1992 pursuant to an extension 11 granted under subsection (e) of that Section, the first 12 anniversary of retirement shall be deemed to be January 1, 13 1993. 14 On each January 1 following the date of the initial 15 increase under this subsection, the employee's monthly 16 retirement annuity shall be increased by an additional 3%. 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 previous increases granted under this 21 Article. 22 (b) The provisions of subsection (a) of this Section 23 shall be applicable to an employee only if the employee makes 24 the additional contributions required after December 31, 1969 25 for the purpose of the automatic increases for not less than 26 the equivalent of one full year. If an employee becomes an 27 annuitant before his additional contributions equal one full 28 year's contributions based on his salary at the date of 29 retirement, the employee may pay the necessary balance of the 30 contributions to the system, without interest, and be 31 eligible for the increasing annuity authorized by this 32 Section. 33 (c) The provisions of subsection (a) of this Section 34 shall not be applicable to any annuitant who is on retirement HB1582 Enrolled -7- LRB9101659EGfg 1 on December 31, 1969, and thereafter returns to State 2 service, unless the member has established at least one year 3 of additional creditable service following reentry into 4 service. 5 (d) In addition to other increases which may be provided 6 by this Section, on January 1, 1981 any annuitant who was 7 receiving a retirement annuity on or before January 1, 1971 8 shall have his retirement annuity then being paid increased 9 $1 per month for each year of creditable service. On January 10 1, 1982, any annuitant who began receiving a retirement 11 annuity on or before January 1, 1977, shall have his 12 retirement annuity then being paid increased $1 per month for 13 each year of creditable service. 14 On January 1, 1987, any annuitant who began receiving a 15 retirement annuity on or before January 1, 1977, shall have 16 the monthly retirement annuity increased by an amount equal 17 to 8¢ per year of creditable service times the number of 18 years that have elapsed since the annuity began. 19 (e) Every person who receives the alternative retirement 20 annuity under Section 14-110 and who is eligible to receive 21 the 3% increase under subsection (a) on January 1, 1986, 22 shall also receive on that date a one-time increase in 23 retirement annuity equal to the difference between (1) his 24 actual retirement annuity on that date, including any 25 increases received under subsection (a), and (2) the amount 26 of retirement annuity he would have received on that date if 27 the amendments to subsection (a) made by Public Act 84-162 28 had been in effect since the date of his retirement. 29 (Source: P.A. 86-273; 87-1265.) 30 (40 ILCS 5/16-132) (from Ch. 108 1/2, par. 16-132) 31 Sec. 16-132. Retirement annuity eligibility. A member 32 who has at least 20 years of creditable service is entitled 33 to a retirement annuity upon or after attainment of age 55. HB1582 Enrolled -8- LRB9101659EGfg 1 A member who has at least 10 but less than 20 years of 2 creditable service is entitled to a retirement annuity upon 3 or after attainment of age 60. A member who has at least 5 4 but less than 10 years of creditable service is entitled to a 5 retirement annuity upon or after attainment of age 62. A 6 member who (i) has earned during the period immediately 7 preceding the last day of service at least one year of 8 contributing creditable service as an employee of a 9 department as defined in Section 14-103.04, (ii) has earned 10 at least 5 years of contributing creditable service as an 11 employee of a department as defined in Section 14-103.04, and 12 (iii) retires on or after January 1, 2001 is entitled to a 13 retirement annuity upon or after attainment of an age which, 14 when added to the number of years of his or her total 15 creditable service, equals at least 85. Portions of years 16 shall be counted as decimal equivalents. 17 A member who is eligible to receive a retirement annuity 18 of at least 74.6% of final average salary and will attain age 19 55 on or before December 31 during the year which commences 20 on July 1 shall be deemed to attain age 55 on the preceding 21 June 1. 22 A member meeting the above eligibility conditions is 23 entitled to a retirement annuity upon written application to 24 the board setting forth the date the member wishes the 25 retirement annuity to commence. However, the effective date 26 of the retirement annuity shall be no earlier than the day 27 following the last day of creditable service, regardless of 28 the date of official termination of employment. To be 29 eligible for a retirement annuity, a member shall not be 30 employed as a teacher in the schools included under this 31 System or under Article 17, unless the member is disabled (in 32 which event, eligibility for salary must cease), or unless 33 the System is required by federal law to commence payment due 34 to the member's age; the changes to this sentence made by HB1582 Enrolled -9- LRB9101659EGfg 1 this amendatory Act of 1991 shall apply without regard to 2 whether the member terminated employment before or after its 3 effective date. 4 (Source: P.A. 90-582, eff. 5-27-98.) 5 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133) 6 Sec. 16-133. Retirement annuity; amount. 7 (a) The amount of the retirement annuity shall be the 8 larger of the amounts determined under paragraphs (A) and (B) 9 below: 10 (A) An amount consisting of the sum of the 11 following: 12 (1) An amount that can be provided on an 13 actuarially equivalent basis by the member's 14 accumulated contributions at the time of retirement; 15 and 16 (2) The sum of (i) the amount that can be 17 provided on an actuarially equivalent basis by the 18 member's accumulated contributions representing 19 service prior to July 1, 1947, and (ii) the amount 20 that can be provided on an actuarially equivalent 21 basis by the amount obtained by multiplying 1.4 22 times the member's accumulated contributions 23 covering service subsequent to June 30, 1947; and 24 (3) If there is prior service, 2 times the 25 amount that would have been determined under 26 subparagraph (2) of paragraph (A) above on account 27 of contributions which would have been made during 28 the period of prior service creditable to the member 29 had the System been in operation and had the member 30 made contributions at the contribution rate in 31 effect prior to July 1, 1947. 32 (B) An amount consisting of the greater of the 33 following: HB1582 Enrolled -10- LRB9101659EGfg 1 (1) For creditable service earned before July 2 1, 1998 that has not been augmented under Section 3 16-129.1: 1.67% of final average salary for each of 4 the first 10 years of creditable service, 1.90% of 5 final average salary for each year in excess of 10 6 but not exceeding 20, 2.10% of final average salary 7 for each year in excess of 20 but not exceeding 30, 8 and 2.30% of final average salary for each year in 9 excess of 30; and 10 For creditable service earned on or after July 11 1, 1998 by a member who has at least 24 years of 12 creditable service on July 1, 1998 and who does not 13 elect to augment service under Section 16-129.1: 14 2.2% of final average salary for each year of 15 creditable service earned on or after July 1, 1998 16 but before the member reaches a total of 30 years of 17 creditable service and 2.3% of final average salary 18 for each year of creditable service earned on or 19 after July 1, 1998 and after the member reaches a 20 total of 30 years of creditable service; and 21 For all other creditable service: 2.2% of 22 final average salary for each year of creditable 23 service; or 24 (2) 1.5% of final average salary for each year 25 of creditable service plus the sum $7.50 for each of 26 the first 20 years of creditable service. 27 The amount of the retirement annuity determined under 28 this paragraph (B) shall be reduced by 1/2 of 1% for each 29 month that the member is less than age 60 at the time the 30 retirement annuity begins. However, this reduction shall 31 not apply (i) if the member has at least 35 years of 32 creditable service, or (ii) if the member retires on 33 account of disability under Section 16-149.2 of this 34 Article with at least 20 years of creditable service, or HB1582 Enrolled -11- LRB9101659EGfg 1 (iii) if the member (1) has earned during the period 2 immediately preceding the last day of service at least 3 one year of contributing creditable service as an 4 employee of a department as defined in Section 14-103.04, 5 (2) has earned at least 5 years of contributing 6 creditable service as an employee of a department as 7 defined in Section 14-103.04, (3) retires on or after 8 January 1, 2001, and (4) retires having attained an age 9 which, when added to the number of years of his or her 10 total creditable service, equals at least 85. Portions 11 of years shall be counted as decimal equivalents. 12 (b) For purposes of this Section, final average salary 13 shall be the average salary for the highest 4 consecutive 14 years within the last 10 years of creditable service as 15 determined under rules of the board. The minimum final 16 average salary shall be considered to be $2,400 per year. 17 In the determination of final average salary for members 18 other than elected officials and their appointees when such 19 appointees are allowed by statute, that part of a member's 20 salary for any year beginning after June 30, 1979 which 21 exceeds the member's annual full-time salary rate with the 22 same employer for the preceding year by more than 20% shall 23 be excluded. The exclusion shall not apply in any year in 24 which the member's creditable earnings are less than 50% of 25 the preceding year's mean salary for downstate teachers as 26 determined by the survey of school district salaries provided 27 in Section 2-3.103 of the School Code. 28 (c) In determining the amount of the retirement annuity 29 under paragraph (B) of this Section, a fractional year shall 30 be granted proportional credit. 31 (d) The retirement annuity determined under paragraph 32 (B) of this Section shall be available only to members who 33 render teaching service after July 1, 1947 for which member 34 contributions are required, and to annuitants who re-enter HB1582 Enrolled -12- LRB9101659EGfg 1 under the provisions of Section 16-150. 2 (e) The maximum retirement annuity provided under 3 paragraph (B) of this Section shall be 75% of final average 4 salary. 5 (f) A member retiring after the effective date of this 6 amendatory Act of 1998 shall receive a pension equal to 75% 7 of final average salary if the member is qualified to receive 8 a retirement annuity equal to at least 74.6% of final average 9 salary under this Article or as proportional annuities under 10 Article 20 of this Code. 11 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99; 12 91-887, eff. 7-6-00.) 13 (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1) 14 Sec. 16-133.1. Automatic annual increase in annuity. 15 (a) Each member with creditable service and retiring on 16 or after August 26, 1969 is entitled to the automatic annual 17 increases in annuity provided under this Section while 18 receiving a retirement annuity or disability retirement 19 annuity from the system. 20 An annuitant shall first be entitled to an initial 21 increase under this Section on the January 1 next following 22 the first anniversary of retirement, or January 1 of the year 23 next following attainment of age 61, whichever is later. At 24 such time, the system shall pay an initial increase 25 determined as follows: 26 (1) 1.5% of the originally granted retirement 27 annuity or disability retirement annuity multiplied by 28 the number of years elapsed, if any, fromthe later of29(1) attainment of age 55, or (2)the date of retirement,30 until January 1, 1972, plus 31 (2) 2% of the originally granted annuity multiplied 32 by the number of years elapsed, if any, from the date of 33 retirement orbetweenJanuary 1, 1972, whichever is HB1582 Enrolled -13- LRB9101659EGfg 1 later, untilandJanuary 1, 1978, plus 2 (3) 3% of the originally granted annuity multiplied 3 by the number of years elapsed from the date of 4 retirement orbetweenJanuary 1, 1978, whichever is 5 later, untilandthe effective date of the initial 6 increase. 7 However, the initial annual increase calculated under this 8 Section for the recipient of a disability retirement annuity 9 granted under Section 16-149.2 shall be reduced by an amount 10 equal to the total of all increases in that annuity received 11 under Section 16-149.5 (but not exceeding 100% of the amount 12 of the initial increase otherwise provided under this 13 Section). 14 Following the initial increase, automatic annual 15 increases in annuity shall be payable on each January 1 16 thereafter during the lifetime of the annuitant, determined 17 as a percentage of the originally granted retirement annuity 18 or disability retirement annuity for increases granted prior 19 to January 1, 1990, and calculated as a percentage of the 20 total amount of annuity, including previous increases under 21 this Section, for increases granted on or after January 1, 22 1990, as follows: 1.5% for periods prior to January 1, 1972, 23 2% for periods after December 31, 1971 and prior to January 24 1, 1978, and 3% for periods after December 31, 1977. 25 (b) The automatic annual increases in annuity provided 26 under this Section shall not be applicable unless a member 27 has made contributions toward such increases for a period 28 equivalent to one full year of creditable service. If a 29 member contributes for service performed after August 26, 30 1969 but the member becomes an annuitant before such 31 contributions amount to one full year's contributions based 32 on the salary at the date of retirement, he or she may pay 33 the necessary balance of the contributions to the system and 34 be eligible for the automatic annual increases in annuity HB1582 Enrolled -14- LRB9101659EGfg 1 provided under this Section. 2 (c) Each member shall make contributions toward the cost 3 of the automatic annual increases in annuity as provided 4 under Section 16-152. 5 (d) An annuitant receiving a retirement annuity or 6 disability retirement annuity on July 1, 1969, who 7 subsequently re-enters service as a teacher is eligible for 8 the automatic annual increases in annuity provided under this 9 Section if he or she renders at least one year of creditable 10 service following the latest re-entry. 11 (e) In addition to the automatic annual increases in 12 annuity provided under this Section, an annuitant who meets 13 the service requirements of this Section and whose retirement 14 annuity or disability retirement annuity began on or before 15 January 1, 1971 shall receive, on January 1, 1981, an 16 increase in the annuity then being paid of one dollar per 17 month for each year of creditable service. On January 1, 18 1982, an annuitant whose retirement annuity or disability 19 retirement annuity began on or before January 1, 1977 shall 20 receive an increase in the annuity then being paid of one 21 dollar per month for each year of creditable service. 22 On January 1, 1987, any annuitant whose retirement 23 annuity began on or before January 1, 1977, shall receive an 24 increase in the monthly retirement annuity equal to 8¢ per 25 year of creditable service times the number of years that 26 have elapsed since the annuity began. 27 (Source: P.A. 86-273; 86-1488.) 28 Section 99. Effective date. This Act takes effect upon 29 becoming law.