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91_HB1582sam001
LRB9101659EGfgam04
1 AMENDMENT TO HOUSE BILL 1582
2 AMENDMENT NO. . Amend House Bill 1582 by replacing
3 the title with the following:
4 "AN ACT in relation to public employee benefits."; and
5 by replacing everything after the enacting clause with the
6 following:
7 "Section 5. The Illinois Pension Code is amended by
8 changing Sections 14-107, 14-108, 14-114, 16-132, 16-133, and
9 16-133.1 as follows:
10 (40 ILCS 5/14-107) (from Ch. 108 1/2, par. 14-107)
11 Sec. 14-107. Retirement annuity - service and age -
12 conditions. A member is entitled to a retirement annuity
13 after having at least 8 years of creditable service.
14 A member who has at least 35 years of creditable service
15 may claim his or her retirement annuity at any age. A member
16 having at least 8 years of creditable service but less than
17 35 may claim his or her retirement annuity upon or after
18 attainment of age 60 or, beginning January 1, 2001, any
19 lesser age which, when added to the number of years of his or
20 her creditable service, equals at least 85. A member upon or
21 after attainment of age 55 having at least 25 years 30 years
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1 of creditable service (30 years if retirement is before
2 January 1, 2001) may elect to receive the lower retirement
3 annuity provided in paragraph (c) of Section 14-108 of this
4 Code. For purposes of the rule of 85, portions of years
5 shall be counted in whole months.
6 The allowance shall begin with the first full calendar
7 month specified in the member's application therefor, the
8 first day of which shall not be before the date of withdrawal
9 as approved by the board. Regardless of the date of
10 withdrawal, the allowance need not begin within one year of
11 application therefor.
12 (Source: P.A. 82-342.)
13 (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
14 Sec. 14-108. Amount of retirement annuity. A member who
15 has contributed to the System for at least 12 months shall be
16 entitled to a prior service annuity for each year of
17 certified prior service credited to him, except that a member
18 shall receive 1/3 of the prior service annuity for each year
19 of service for which contributions have been made and all of
20 such annuity shall be payable after the member has made
21 contributions for a period of 3 years. Proportionate amounts
22 shall be payable for service of less than a full year after
23 completion of at least 12 months.
24 The total period of service to be considered in
25 establishing the measure of prior service annuity shall
26 include service credited in the Teachers' Retirement System
27 of the State of Illinois and the State Universities
28 Retirement System for which contributions have been made by
29 the member to such systems; provided that at least 1 year of
30 the total period of 3 years prescribed for the allowance of a
31 full measure of prior service annuity shall consist of
32 membership service in this system for which credit has been
33 granted.
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1 (a) In the case of a member who retires on or after
2 January 1, 1998 and is a noncovered employee, the retirement
3 annuity for membership service and prior service shall be
4 2.2% of final average compensation for each year of service.
5 Any service credit established as a covered employee shall be
6 computed as stated in paragraph (b).
7 (b) In the case of a member who retires on or after
8 January 1, 1998 and is a covered employee, the retirement
9 annuity for membership service and prior service shall be
10 computed as stated in paragraph (a) for all service credit
11 established as a noncovered employee; for service credit
12 established as a covered employee it shall be 1.67% of final
13 average compensation for each year of service.
14 (c) For a member with 30 but less than 35 years of
15 creditable service retiring after attaining age 55 but before
16 age 60 with at least 30 but less than 35 years of creditable
17 service if retirement is before January 1, 2001, or with at
18 least 25 but less than 30 years of creditable service if
19 retirement is on or after January 1, 2001, the retirement
20 annuity shall be reduced by 1/2 of 1% for each month that the
21 member's age is under age 60 at the time of retirement.
22 (d) A retirement annuity shall not exceed 75% of final
23 average compensation, subject to such extension as may result
24 from the application of Section 14-114 or Section 14-115.
25 (e) 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 legislation enacted by the Illinois General Assembly
29 transferring the member to State employment from county
30 employment in a county Department of Public Aid in counties
31 of 3,000,000 or more population, under a plan of coordination
32 with the Old Age, Survivors and Disability provisions
33 thereof, if not fully insured for Old Age Insurance payments
34 under the Federal Old Age, Survivors and Disability Insurance
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1 provisions at the date of acceptance of a retirement annuity,
2 shall not be less than the amount for which the member would
3 have been eligible if coordination were not applicable.
4 (f) The retirement annuity payable to any covered
5 employee who is a member of the System and in service on
6 January 1, 1969, or in service thereafter in 1969 as a result
7 of the legislation designated in the immediately preceding
8 paragraph, if fully insured for Old Age Insurance payments
9 under the Federal Social Security Act at the date of
10 acceptance of a retirement annuity, shall not be less than an
11 amount which when added to the Primary Insurance Benefit
12 payable to the member upon attainment of age 65 under such
13 Federal Act, will equal the annuity which would otherwise be
14 payable if the coordinated plan of coverage were not
15 applicable.
16 (g) In the case of a member who is a noncovered
17 employee, the retirement annuity for membership service as a
18 security employee of the Department of Corrections or
19 security employee of the Department of Human Services shall
20 be 1.9% of final average compensation for each of the first
21 10 years of service,; 2.1% for each of the next 10 years of
22 service,; 2.25% for each year of service in excess of 20 but
23 not exceeding 30,; and 2.5% for each year in excess of 30;
24 except that the annuity may be calculated under subsection
25 (a) rather than this subsection (g) if the resulting annuity
26 is greater.
27 (h) In the case of a member who is a covered employee,
28 the retirement annuity for membership service as a security
29 employee of the Department of Corrections or security
30 employee of the Department of Human Services shall be 1.67%
31 of final average compensation for each of the first 10 years
32 of service,; 1.90% for each of the next 10 years of service,;
33 2.10% for each year of service in excess of 20 but not
34 exceeding 30,; and 2.30% for each year in excess of 30.
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1 (i) For the purposes of this Section and Section 14-133
2 of this Act, the term "security employee of the Department of
3 Corrections" and the term "security employee of the
4 Department of Human Services" shall have the meanings
5 ascribed to them in subsection (c) of Section 14-110.
6 (j) The retirement annuity computed pursuant to
7 paragraphs (g) or (h) shall be applicable only to those
8 security employees of the Department of Corrections and
9 security employees of the Department of Human Services who
10 have at least 20 years of membership service and who are not
11 eligible for the alternative retirement annuity provided
12 under Section 14-110. However, persons transferring to this
13 System under Section 14-108.2 who have service credit under
14 Article 16 of this Code may count such service toward
15 establishing their eligibility under the 20-year service
16 requirement of this subsection; but such service may be used
17 only for establishing such eligibility, and not for the
18 purpose of increasing or calculating any benefit.
19 (k) (Blank).
20 (l) The changes to this Section made by this amendatory
21 Act of 1997 (changing certain retirement annuity formulas
22 from a stepped rate to a flat rate) apply to members who
23 retire on or after January 1, 1998, without regard to whether
24 employment terminated before the effective date of this
25 amendatory Act of 1997. An annuity shall not be calculated
26 in steps by using the new flat rate for some steps and the
27 superseded stepped rate for other steps of the same type of
28 service.
29 (Source: P.A. 89-507, eff. 7-1-97; 90-65, eff. 7-7-97;
30 90-448, eff. 8-16-97; 90-655, eff. 7-30-98.)
31 (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
32 Sec. 14-114. Automatic increase in retirement annuity.
33 (a) Any person receiving a retirement annuity under this
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1 Article who retires having attained age 60, or who retires
2 before age 60 having at least 35 years of creditable service,
3 or who retires on or after January 1, 2001 at an age which,
4 when added to the number of years of his or her creditable
5 service, equals at least 85, shall, on January 1, next
6 following the first full year of retirement, have the amount
7 of the then fixed and payable monthly retirement annuity
8 increased 3%. Any person receiving a retirement annuity
9 under this Article who retires before attainment of age 60
10 and with less than (i) 35 years of creditable service if
11 retirement is before January 1, 2001, or (ii) the number of
12 years of creditable service which, when added to the member's
13 age, would equal 85, if retirement is on or after January 1,
14 2001, shall have the amount of the fixed and payable
15 retirement annuity increased by 3% on the January 1 occurring
16 on or next following (1) attainment of age 60, or (2) the
17 first anniversary of retirement, whichever occurs later.
18 However, for persons who receive the alternative retirement
19 annuity under Section 14-110, references in this subsection
20 (a) to attainment of age 60 shall be deemed to refer to
21 attainment of age 55. For a person receiving early
22 retirement incentives under Section 14-108.3 whose retirement
23 annuity began after January 1, 1992 pursuant to an extension
24 granted under subsection (e) of that Section, the first
25 anniversary of retirement shall be deemed to be January 1,
26 1993.
27 On each January 1 following the date of the initial
28 increase under this subsection, the employee's monthly
29 retirement annuity shall be increased by an additional 3%.
30 Beginning January 1, 1990, all automatic annual increases
31 payable under this Section shall be calculated as a
32 percentage of the total annuity payable at the time of the
33 increase, including previous increases granted under this
34 Article.
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1 (b) The provisions of subsection (a) of this Section
2 shall be applicable to an employee only if the employee makes
3 the additional contributions required after December 31, 1969
4 for the purpose of the automatic increases for not less than
5 the equivalent of one full year. If an employee becomes an
6 annuitant before his additional contributions equal one full
7 year's contributions based on his salary at the date of
8 retirement, the employee may pay the necessary balance of the
9 contributions to the system, without interest, and be
10 eligible for the increasing annuity authorized by this
11 Section.
12 (c) The provisions of subsection (a) of this Section
13 shall not be applicable to any annuitant who is on retirement
14 on December 31, 1969, and thereafter returns to State
15 service, unless the member has established at least one year
16 of additional creditable service following reentry into
17 service.
18 (d) In addition to other increases which may be provided
19 by this Section, on January 1, 1981 any annuitant who was
20 receiving a retirement annuity on or before January 1, 1971
21 shall have his retirement annuity then being paid increased
22 $1 per month for each year of creditable service. On January
23 1, 1982, any annuitant who began receiving a retirement
24 annuity on or before January 1, 1977, shall have his
25 retirement annuity then being paid increased $1 per month for
26 each year of creditable service.
27 On January 1, 1987, any annuitant who began receiving a
28 retirement annuity on or before January 1, 1977, shall have
29 the monthly retirement annuity increased by an amount equal
30 to 8¢ per year of creditable service times the number of
31 years that have elapsed since the annuity began.
32 (e) Every person who receives the alternative retirement
33 annuity under Section 14-110 and who is eligible to receive
34 the 3% increase under subsection (a) on January 1, 1986,
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1 shall also receive on that date a one-time increase in
2 retirement annuity equal to the difference between (1) his
3 actual retirement annuity on that date, including any
4 increases received under subsection (a), and (2) the amount
5 of retirement annuity he would have received on that date if
6 the amendments to subsection (a) made by Public Act 84-162
7 had been in effect since the date of his retirement.
8 (Source: P.A. 86-273; 87-1265.)
9 (40 ILCS 5/16-132) (from Ch. 108 1/2, par. 16-132)
10 Sec. 16-132. Retirement annuity eligibility. A member
11 who has at least 20 years of creditable service is entitled
12 to a retirement annuity upon or after attainment of age 55.
13 A member who has at least 10 but less than 20 years of
14 creditable service is entitled to a retirement annuity upon
15 or after attainment of age 60. A member who has at least 5
16 but less than 10 years of creditable service is entitled to a
17 retirement annuity upon or after attainment of age 62. A
18 member who (i) has earned during the period immediately
19 preceding the last day of service at least one year of
20 contributing creditable service as an employee of a
21 department as defined in Section 14-103.04, (ii) has earned
22 at least 5 years of contributing creditable service as an
23 employee of a department as defined in Section 14-103.04, and
24 (iii) retires on or after January 1, 2001 is entitled to a
25 retirement annuity upon or after attainment of an age which,
26 when added to the number of years of his or her total
27 creditable service, equals at least 85. Portions of years
28 shall be counted as decimal equivalents.
29 A member who is eligible to receive a retirement annuity
30 of at least 74.6% of final average salary and will attain age
31 55 on or before December 31 during the year which commences
32 on July 1 shall be deemed to attain age 55 on the preceding
33 June 1.
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1 A member meeting the above eligibility conditions is
2 entitled to a retirement annuity upon written application to
3 the board setting forth the date the member wishes the
4 retirement annuity to commence. However, the effective date
5 of the retirement annuity shall be no earlier than the day
6 following the last day of creditable service, regardless of
7 the date of official termination of employment. To be
8 eligible for a retirement annuity, a member shall not be
9 employed as a teacher in the schools included under this
10 System or under Article 17, unless the member is disabled (in
11 which event, eligibility for salary must cease), or unless
12 the System is required by federal law to commence payment due
13 to the member's age; the changes to this sentence made by
14 this amendatory Act of 1991 shall apply without regard to
15 whether the member terminated employment before or after its
16 effective date.
17 (Source: P.A. 90-582, eff. 5-27-98.)
18 (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
19 Sec. 16-133. Retirement annuity; amount.
20 (a) The amount of the retirement annuity shall be the
21 larger of the amounts determined under paragraphs (A) and (B)
22 below:
23 (A) An amount consisting of the sum of the
24 following:
25 (1) An amount that can be provided on an
26 actuarially equivalent basis by the member's
27 accumulated contributions at the time of retirement;
28 and
29 (2) The sum of (i) the amount that can be
30 provided on an actuarially equivalent basis by the
31 member's accumulated contributions representing
32 service prior to July 1, 1947, and (ii) the amount
33 that can be provided on an actuarially equivalent
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1 basis by the amount obtained by multiplying 1.4
2 times the member's accumulated contributions
3 covering service subsequent to June 30, 1947; and
4 (3) If there is prior service, 2 times the
5 amount that would have been determined under
6 subparagraph (2) of paragraph (A) above on account
7 of contributions which would have been made during
8 the period of prior service creditable to the member
9 had the System been in operation and had the member
10 made contributions at the contribution rate in
11 effect prior to July 1, 1947.
12 (B) An amount consisting of the greater of the
13 following:
14 (1) For creditable service earned before July
15 1, 1998 that has not been augmented under Section
16 16-129.1: 1.67% of final average salary for each of
17 the first 10 years of creditable service, 1.90% of
18 final average salary for each year in excess of 10
19 but not exceeding 20, 2.10% of final average salary
20 for each year in excess of 20 but not exceeding 30,
21 and 2.30% of final average salary for each year in
22 excess of 30; and
23 For creditable service earned on or after July
24 1, 1998 by a member who has at least 24 years of
25 creditable service on July 1, 1998 and who does not
26 elect to augment service under Section 16-129.1:
27 2.2% of final average salary for each year of
28 creditable service earned on or after July 1, 1998
29 but before the member reaches a total of 30 years of
30 creditable service and 2.3% of final average salary
31 for each year of creditable service earned on or
32 after July 1, 1998 and after the member reaches a
33 total of 30 years of creditable service; and
34 For all other creditable service: 2.2% of
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1 final average salary for each year of creditable
2 service; or
3 (2) 1.5% of final average salary for each year
4 of creditable service plus the sum $7.50 for each of
5 the first 20 years of creditable service.
6 The amount of the retirement annuity determined under
7 this paragraph (B) shall be reduced by 1/2 of 1% for each
8 month that the member is less than age 60 at the time the
9 retirement annuity begins. However, this reduction shall
10 not apply (i) if the member has at least 35 years of
11 creditable service, or (ii) if the member retires on
12 account of disability under Section 16-149.2 of this
13 Article with at least 20 years of creditable service, or
14 (iii) if the member (1) has earned during the period
15 immediately preceding the last day of service at least
16 one year of contributing creditable service as an
17 employee of a department as defined in Section 14-103.04,
18 (2) has earned at least 5 years of contributing
19 creditable service as an employee of a department as
20 defined in Section 14-103.04, (3) retires on or after
21 January 1, 2001, and (4) retires having attained an age
22 which, when added to the number of years of his or her
23 total creditable service, equals at least 85. Portions
24 of years shall be counted as decimal equivalents.
25 (b) For purposes of this Section, final average salary
26 shall be the average salary for the highest 4 consecutive
27 years within the last 10 years of creditable service as
28 determined under rules of the board. The minimum final
29 average salary shall be considered to be $2,400 per year.
30 In the determination of final average salary for members
31 other than elected officials and their appointees when such
32 appointees are allowed by statute, that part of a member's
33 salary for any year beginning after June 30, 1979 which
34 exceeds the member's annual full-time salary rate with the
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1 same employer for the preceding year by more than 20% shall
2 be excluded. The exclusion shall not apply in any year in
3 which the member's creditable earnings are less than 50% of
4 the preceding year's mean salary for downstate teachers as
5 determined by the survey of school district salaries provided
6 in Section 2-3.103 of the School Code.
7 (c) In determining the amount of the retirement annuity
8 under paragraph (B) of this Section, a fractional year shall
9 be granted proportional credit.
10 (d) The retirement annuity determined under paragraph
11 (B) of this Section shall be available only to members who
12 render teaching service after July 1, 1947 for which member
13 contributions are required, and to annuitants who re-enter
14 under the provisions of Section 16-150.
15 (e) The maximum retirement annuity provided under
16 paragraph (B) of this Section shall be 75% of final average
17 salary.
18 (f) A member retiring after the effective date of this
19 amendatory Act of 1998 shall receive a pension equal to 75%
20 of final average salary if the member is qualified to receive
21 a retirement annuity equal to at least 74.6% of final average
22 salary under this Article or as proportional annuities under
23 Article 20 of this Code.
24 (Source: P.A. 90-582, eff. 5-27-98; 91-17, eff. 6-4-99;
25 91-887, eff. 7-6-00.)
26 (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
27 Sec. 16-133.1. Automatic annual increase in annuity.
28 (a) Each member with creditable service and retiring on
29 or after August 26, 1969 is entitled to the automatic annual
30 increases in annuity provided under this Section while
31 receiving a retirement annuity or disability retirement
32 annuity from the system.
33 An annuitant shall first be entitled to an initial
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1 increase under this Section on the January 1 next following
2 the first anniversary of retirement, or January 1 of the year
3 next following attainment of age 61, whichever is later. At
4 such time, the system shall pay an initial increase
5 determined as follows:
6 (1) 1.5% of the originally granted retirement
7 annuity or disability retirement annuity multiplied by
8 the number of years elapsed, if any, from the later of
9 (1) attainment of age 55, or (2) the date of retirement,
10 until January 1, 1972, plus
11 (2) 2% of the originally granted annuity multiplied
12 by the number of years elapsed, if any, from the date of
13 retirement or between January 1, 1972, whichever is
14 later, until and January 1, 1978, plus
15 (3) 3% of the originally granted annuity multiplied
16 by the number of years elapsed from the date of
17 retirement or between January 1, 1978, whichever is
18 later, until and the effective date of the initial
19 increase.
20 However, the initial annual increase calculated under this
21 Section for the recipient of a disability retirement annuity
22 granted under Section 16-149.2 shall be reduced by an amount
23 equal to the total of all increases in that annuity received
24 under Section 16-149.5 (but not exceeding 100% of the amount
25 of the initial increase otherwise provided under this
26 Section).
27 Following the initial increase, automatic annual
28 increases in annuity shall be payable on each January 1
29 thereafter during the lifetime of the annuitant, determined
30 as a percentage of the originally granted retirement annuity
31 or disability retirement annuity for increases granted prior
32 to January 1, 1990, and calculated as a percentage of the
33 total amount of annuity, including previous increases under
34 this Section, for increases granted on or after January 1,
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1 1990, as follows: 1.5% for periods prior to January 1, 1972,
2 2% for periods after December 31, 1971 and prior to January
3 1, 1978, and 3% for periods after December 31, 1977.
4 (b) The automatic annual increases in annuity provided
5 under this Section shall not be applicable unless a member
6 has made contributions toward such increases for a period
7 equivalent to one full year of creditable service. If a
8 member contributes for service performed after August 26,
9 1969 but the member becomes an annuitant before such
10 contributions amount to one full year's contributions based
11 on the salary at the date of retirement, he or she may pay
12 the necessary balance of the contributions to the system and
13 be eligible for the automatic annual increases in annuity
14 provided under this Section.
15 (c) Each member shall make contributions toward the cost
16 of the automatic annual increases in annuity as provided
17 under Section 16-152.
18 (d) An annuitant receiving a retirement annuity or
19 disability retirement annuity on July 1, 1969, who
20 subsequently re-enters service as a teacher is eligible for
21 the automatic annual increases in annuity provided under this
22 Section if he or she renders at least one year of creditable
23 service following the latest re-entry.
24 (e) In addition to the automatic annual increases in
25 annuity provided under this Section, an annuitant who meets
26 the service requirements of this Section and whose retirement
27 annuity or disability retirement annuity began on or before
28 January 1, 1971 shall receive, on January 1, 1981, an
29 increase in the annuity then being paid of one dollar per
30 month for each year of creditable service. On January 1,
31 1982, an annuitant whose retirement annuity or disability
32 retirement annuity began on or before January 1, 1977 shall
33 receive an increase in the annuity then being paid of one
34 dollar per month for each year of creditable service.
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1 On January 1, 1987, any annuitant whose retirement
2 annuity began on or before January 1, 1977, shall receive an
3 increase in the monthly retirement annuity equal to 8¢ per
4 year of creditable service times the number of years that
5 have elapsed since the annuity began.
6 (Source: P.A. 86-273; 86-1488.)
7 Section 99. Effective date. This Act takes effect upon
8 becoming law.".