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91_HB1583sam002
LRB9101658EGfgam02
1 AMENDMENT TO HOUSE BILL 1583
2 AMENDMENT NO. . Amend House Bill 1583, AS AMENDED,
3 by inserting after the end of Section 15 the following:
4 "Section 20. The Illinois Pension Code is amended by
5 changing Sections 15-136, 15-136.2, and 15-185 as follows:
6 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
7 Sec. 15-136. Retirement annuities - Amount. The
8 provisions of this Section 15-136 apply only to those
9 participants who are participating in the traditional benefit
10 package or the portable benefit package and do not apply to
11 participants who are participating in the self-managed plan.
12 (a) The amount of a participant's retirement annuity,
13 expressed in the form of a single-life annuity, shall be
14 determined by whichever of the following rules is applicable
15 and provides the largest annuity:
16 Rule 1: The retirement annuity shall be 1.67% of final
17 rate of earnings for each of the first 10 years of service,
18 1.90% for each of the next 10 years of service, 2.10% for
19 each year of service in excess of 20 but not exceeding 30,
20 and 2.30% for each year in excess of 30; or for persons who
21 retire on or after January 1, 1998, 2.2% of the final rate of
22 earnings for each year of service.
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1 Rule 2: The retirement annuity shall be the sum of the
2 following, determined from amounts credited to the
3 participant in accordance with the actuarial tables and the
4 prescribed rate of interest in effect at the time the
5 retirement annuity begins:
6 (i) the normal annuity which can be provided on an
7 actuarially equivalent basis, by the accumulated normal
8 contributions as of the date the annuity begins; and
9 (ii) an annuity from employer contributions of an
10 amount equal to that which can be provided on an
11 actuarially equivalent basis from the accumulated normal
12 contributions made by the participant under Section
13 15-113.6 and Section 15-113.7 plus 1.4 times all other
14 accumulated normal contributions made by the participant.
15 With respect to a police officer or firefighter who
16 retires on or after August 14, the effective date of this
17 amendatory Act of 1998, the accumulated normal contributions
18 taken into account under clauses (i) and (ii) of this Rule 2
19 shall include the additional normal contributions made by the
20 police officer or firefighter under Section 15-157(a).
21 The amount of a retirement annuity calculated under this
22 Rule 2 shall be computed solely on the basis of the
23 participant's accumulated normal contributions, as specified
24 in this Rule and defined in Section 15-116. Neither an
25 employee or employer contribution for early retirement under
26 Section 15-136.2 nor any other employer contribution shall be
27 used in the calculation of the amount of a retirement annuity
28 under this Rule 2.
29 This amendatory Act of the 91st General Assembly is a
30 clarification of existing law and applies to every
31 participant and annuitant without regard to whether status as
32 an employee terminates before the effective date of this
33 amendatory Act.
34 Rule 3: The retirement annuity of a participant who is
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1 employed at least one-half time during the period on which
2 his or her final rate of earnings is based, shall be equal to
3 the participant's years of service not to exceed 30,
4 multiplied by (1) $96 if the participant's final rate of
5 earnings is less than $3,500, (2) $108 if the final rate of
6 earnings is at least $3,500 but less than $4,500, (3) $120 if
7 the final rate of earnings is at least $4,500 but less than
8 $5,500, (4) $132 if the final rate of earnings is at least
9 $5,500 but less than $6,500, (5) $144 if the final rate of
10 earnings is at least $6,500 but less than $7,500, (6) $156 if
11 the final rate of earnings is at least $7,500 but less than
12 $8,500, (7) $168 if the final rate of earnings is at least
13 $8,500 but less than $9,500, and (8) $180 if the final rate
14 of earnings is $9,500 or more, except that the annuity for
15 those persons having made an election under Section
16 15-154(a-1) shall be calculated and payable under the
17 portable retirement benefit program pursuant to the
18 provisions of Section 15-136.4.
19 Rule 4: A participant who is at least age 50 and has 25
20 or more years of service as a police officer or firefighter,
21 and a participant who is age 55 or over and has at least 20
22 but less than 25 years of service as a police officer or
23 firefighter, shall be entitled to a retirement annuity of
24 2 1/4% of the final rate of earnings for each of the first 10
25 years of service as a police officer or firefighter, 2 1/2%
26 for each of the next 10 years of service as a police officer
27 or firefighter, and 2 3/4% for each year of service as a
28 police officer or firefighter in excess of 20. The
29 retirement annuity for all other service shall be computed
30 under Rule 1.
31 For purposes of this Rule 4, a participant's service as a
32 firefighter shall also include the following:
33 (i) service that is performed while the person is
34 an employee under subsection (h) of Section 15-107; and
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1 (ii) in the case of an individual who was a
2 participating employee employed in the fire department of
3 the University of Illinois's Champaign-Urbana campus
4 immediately prior to the elimination of that fire
5 department and who immediately after the elimination of
6 that fire department transferred to another job with the
7 University of Illinois, service performed as an employee
8 of the University of Illinois in a position other than
9 police officer or firefighter, from the date of that
10 transfer until the employee's next termination of service
11 with the University of Illinois.
12 (b) The retirement annuity provided under Rules 1 and 3
13 above shall be reduced by 1/2 of 1% for each month the
14 participant is under age 60 at the time of retirement.
15 However, this reduction shall not apply in the following
16 cases:
17 (1) For a disabled participant whose disability
18 benefits have been discontinued because he or she has
19 exhausted eligibility for disability benefits under
20 clause (6) of Section 15-152;
21 (2) For a participant who has at least the number
22 of years of service required to retire at any age under
23 subsection (a) of Section 15-135; or
24 (3) For that portion of a retirement annuity which
25 has been provided on account of service of the
26 participant during periods when he or she performed the
27 duties of a police officer or firefighter, if these
28 duties were performed for at least 5 years immediately
29 preceding the date the retirement annuity is to begin.
30 (c) The maximum retirement annuity provided under Rules
31 1, 2, and 4 shall be the lesser of (1) the annual limit of
32 benefits as specified in Section 415 of the Internal Revenue
33 Code of 1986, as such Section may be amended from time to
34 time and as such benefit limits shall be adjusted by the
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1 Commissioner of Internal Revenue, and (2) 80% of final rate
2 of earnings.
3 (d) An annuitant whose status as an employee terminates
4 after August 14, 1969 shall receive automatic increases in
5 his or her retirement annuity as follows:
6 Effective January 1 immediately following the date the
7 retirement annuity begins, the annuitant shall receive an
8 increase in his or her monthly retirement annuity of 0.125%
9 of the monthly retirement annuity provided under Rule 1, Rule
10 2, Rule 3, or Rule 4, contained in this Section, multiplied
11 by the number of full months which elapsed from the date the
12 retirement annuity payments began to January 1, 1972, plus
13 0.1667% of such annuity, multiplied by the number of full
14 months which elapsed from January 1, 1972, or the date the
15 retirement annuity payments began, whichever is later, to
16 January 1, 1978, plus 0.25% of such annuity multiplied by the
17 number of full months which elapsed from January 1, 1978, or
18 the date the retirement annuity payments began, whichever is
19 later, to the effective date of the increase.
20 The annuitant shall receive an increase in his or her
21 monthly retirement annuity on each January 1 thereafter
22 during the annuitant's life of 3% of the monthly annuity
23 provided under Rule 1, Rule 2, Rule 3, or Rule 4 contained in
24 this Section. The change made under this subsection by P.A.
25 81-970 is effective January 1, 1980 and applies to each
26 annuitant whose status as an employee terminates before or
27 after that date.
28 Beginning January 1, 1990, all automatic annual increases
29 payable under this Section shall be calculated as a
30 percentage of the total annuity payable at the time of the
31 increase, including all increases previously granted under
32 this Article.
33 The change made in this subsection by P.A. 85-1008 is
34 effective January 26, 1988, and is applicable without regard
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1 to whether status as an employee terminated before that date.
2 (e) If, on January 1, 1987, or the date the retirement
3 annuity payment period begins, whichever is later, the sum of
4 the retirement annuity provided under Rule 1 or Rule 2 of
5 this Section and the automatic annual increases provided
6 under the preceding subsection or Section 15-136.1, amounts
7 to less than the retirement annuity which would be provided
8 by Rule 3, the retirement annuity shall be increased as of
9 January 1, 1987, or the date the retirement annuity payment
10 period begins, whichever is later, to the amount which would
11 be provided by Rule 3 of this Section. Such increased amount
12 shall be considered as the retirement annuity in determining
13 benefits provided under other Sections of this Article. This
14 paragraph applies without regard to whether status as an
15 employee terminated before the effective date of this
16 amendatory Act of 1987, provided that the annuitant was
17 employed at least one-half time during the period on which
18 the final rate of earnings was based.
19 (f) A participant is entitled to such additional annuity
20 as may be provided on an actuarially equivalent basis, by any
21 accumulated additional contributions to his or her credit.
22 However, the additional contributions made by the participant
23 toward the automatic increases in annuity provided under this
24 Section shall not be taken into account in determining the
25 amount of such additional annuity.
26 (g) If, (1) by law, a function of a governmental unit,
27 as defined by Section 20-107 of this Code, is transferred in
28 whole or in part to an employer, and (2) a participant
29 transfers employment from such governmental unit to such
30 employer within 6 months after the transfer of the function,
31 and (3) the sum of (A) the annuity payable to the participant
32 under Rule 1, 2, or 3 of this Section (B) all proportional
33 annuities payable to the participant by all other retirement
34 systems covered by Article 20, and (C) the initial primary
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1 insurance amount to which the participant is entitled under
2 the Social Security Act, is less than the retirement annuity
3 which would have been payable if all of the participant's
4 pension credits validated under Section 20-109 had been
5 validated under this system, a supplemental annuity equal to
6 the difference in such amounts shall be payable to the
7 participant.
8 (h) On January 1, 1981, an annuitant who was receiving a
9 retirement annuity on or before January 1, 1971 shall have
10 his or her retirement annuity then being paid increased $1
11 per month for each year of creditable service. On January 1,
12 1982, an annuitant whose retirement annuity began on or
13 before January 1, 1977, shall have his or her retirement
14 annuity then being paid increased $1 per month for each year
15 of creditable service.
16 (i) On January 1, 1987, any annuitant whose retirement
17 annuity began on or before January 1, 1977, shall have the
18 monthly retirement annuity increased by an amount equal to 8¢
19 per year of creditable service times the number of years that
20 have elapsed since the annuity began.
21 (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
22 eff. 8-16-97; 90-576, eff. 3-31-98; 90-655, eff. 7-30-98;
23 90-766, eff. 8-14-98.)
24 (40 ILCS 5/15-136.2) (from Ch. 108 1/2, par. 15-136.2)
25 Sec. 15-136.2. Early retirement without discount. A
26 participant whose retirement annuity begins after June 1,
27 1981 and on or before September 1, 2002 and within six months
28 of the last day of employment for which retirement
29 contributions were required, may elect at the time of
30 application to make a one time employee contribution to the
31 System and thereby avoid the early retirement reduction in
32 retirement annuity specified under subsection (b) of Section
33 15-136. The exercise of the election shall obligate the last
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1 employer to also make a one time non-refundable contribution
2 to the System.
3 The one time employee and employer contributions shall be
4 a percentage of the retiring participant's highest full time
5 annual salary rate during the academic years which were
6 considered in determining his or her final rate of earnings,
7 or if not full time then the full time equivalent. The
8 employee contribution rate shall be 7% multiplied by the
9 lesser of the following 2 sums: (1) the number of years that
10 the participant is less than age 60; or (2) the number of
11 years that the participant's creditable service is less than
12 35 years. The employer contribution shall be at the rate of
13 20% for each year the participant is less than age 60. The
14 employer shall pay the employer contribution from the same
15 source of funds which is used in paying earnings to
16 employees.
17 Upon receipt of the application and election, the System
18 shall determine the one time employee and employer
19 contributions. The provisions of this Section shall not be
20 applicable until all the above outlined contributions have
21 been received by the System; however, the date such
22 contributions are received shall not be considered in
23 determining the effective date of retirement.
24 Employee and employer contributions under this Section
25 shall be used only to eliminate the reduction for early
26 retirement under Rules 1 and 3 of Section 15-136 and shall
27 not be used in calculating annuities under Rules 2 or 4 set
28 forth in Section 15-136. This amendatory Act of the 91st
29 General Assembly is a clarification of existing law and
30 applies to every participant and annuitant without regard to
31 whether status as an employee terminates before the effective
32 date of this amendatory Act.
33 For persons who apply to the Board after the effective
34 date of this amendatory Act of 1993 and before July 1, 1993,
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1 requesting a retirement annuity to begin no earlier than July
2 1, 1993 and no later than June 30, 1994, the employer shall
3 pay both the employee and employer contributions required
4 under this Section.
5 The number of employees retiring under this Section in
6 any fiscal year may be limited at the option of the employer
7 to no less than 15% of those eligible. The right to elect
8 early retirement without discount shall be allocated among
9 those applying on the basis of seniority in the service of
10 the last employer.
11 (Source: P.A. 90-65, eff. 7-7-97; 90-511, eff. 8-22-97.)
12 (40 ILCS 5/15-185) (from Ch. 108 1/2, par. 15-185)
13 Sec. 15-185. Annuities, etc., exempt. The accumulated
14 employee and employer contributions shall be held in trust
15 for each participant and annuitant, and this trust shall be
16 treated as a spendthrift trust. Except as provided in this
17 Article, all cash, securities and other property of this
18 system, all annuities and other benefits payable under this
19 Article and all accumulated credits of participants and
20 annuitants in this system and the right of any person to
21 receive an annuity or other benefit under this Article, or a
22 refund of contributions, shall not be subject to judgment,
23 execution, garnishment, attachment, or other seizure by
24 process, in bankruptcy or otherwise, nor to sale, pledge,
25 mortgage or other alienation, and shall not be assignable.
26 The board, however, may deduct from the benefits, refunds and
27 credits payable to the participant, annuitant or beneficiary,
28 amounts owed by the participant or annuitant to the system.
29 No attempted sale, transfer or assignment of any benefit,
30 refund or credit shall prevent the right of the board to make
31 the deduction and offset authorized in this Section. Any
32 participant or annuitant may authorize the board to deduct
33 from disability benefits or annuities, premiums due under any
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1 group hospital-surgical insurance program which is sponsored
2 or approved by any employer; however, the deductions from
3 disability benefits may not begin prior to 6 months after the
4 disability occurs.
5 A person receiving an annuity or benefit under this
6 Article may also authorize withholding from that annuity or
7 benefit for the purposes enumerated in and in accordance with
8 the provisions of the State Salary and Annuity Withholding
9 Act.
10 This Section is not intended to, and does not, affect the
11 calculation of any benefit under this Article or dictate how
12 or to what extent employee or employer contributions are to
13 be taken into account in calculating benefits. This
14 amendatory Act of the 91st General Assembly is a
15 clarification of existing law and applies to every
16 participant and annuitant without regard to whether status as
17 an employee terminates before the effective date of this
18 amendatory Act.
19 Public Act 86-273 is a clarification of existing law and
20 shall be applicable to every participant and annuitant
21 without regard to whether status as an employee terminates
22 before the effective date of that Act.
23 (Source: P.A. 90-65, eff. 7-7-97; 90-448, eff. 8-16-97;
24 90-511, eff. 8-22-97; 90-655, eff. 7-30-98.)
25 Section 25. The Illinois Pension Code is amended by
26 changing Section 15-136, 15-139, 15-146, 15-146.1, and 15-154
27 as follows:
28 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
29 Sec. 15-136. Retirement annuities - Amount. The
30 provisions of this Section 15-136 apply only to those
31 participants who are participating in the traditional benefit
32 package or the portable benefit package and do not apply to
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1 participants who are participating in the self-managed plan.
2 (a) The amount of a participant's retirement annuity,
3 expressed in the form of a single-life annuity, shall be
4 determined by whichever of the following rules is applicable
5 and provides the largest annuity:
6 Rule 1: The retirement annuity shall be 1.67% of final
7 rate of earnings for each of the first 10 years of service,
8 1.90% for each of the next 10 years of service, 2.10% for
9 each year of service in excess of 20 but not exceeding 30,
10 and 2.30% for each year in excess of 30; or for persons who
11 retire on or after January 1, 1998, 2.2% of the final rate of
12 earnings for each year of service.
13 Rule 2: The retirement annuity shall be the sum of the
14 following, determined from amounts credited to the
15 participant in accordance with the actuarial tables and the
16 prescribed rate of interest in effect at the time the
17 retirement annuity begins:
18 (i) the normal annuity which can be provided on an
19 actuarially equivalent basis, by the accumulated normal
20 contributions as of the date the annuity begins; and
21 (ii) an annuity from employer contributions of an
22 amount which can be provided on an actuarially equivalent
23 basis from the accumulated normal contributions made by
24 the participant under Section 15-113.6 and Section
25 15-113.7 plus 1.4 times all other accumulated normal
26 contributions made by the participant.
27 With respect to a police officer or firefighter who retires
28 on or after the effective date of this amendatory Act of
29 1998, the accumulated normal contributions taken into account
30 under clauses (i) and (ii) of this Rule 2 shall include the
31 additional normal contributions made by the police officer or
32 firefighter under Section 15-157(a).
33 Rule 3: The retirement annuity of a participant who is
34 employed at least one-half time during the period on which
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1 his or her final rate of earnings is based, shall be equal to
2 the participant's years of service not to exceed 30,
3 multiplied by (1) $96 if the participant's final rate of
4 earnings is less than $3,500, (2) $108 if the final rate of
5 earnings is at least $3,500 but less than $4,500, (3) $120 if
6 the final rate of earnings is at least $4,500 but less than
7 $5,500, (4) $132 if the final rate of earnings is at least
8 $5,500 but less than $6,500, (5) $144 if the final rate of
9 earnings is at least $6,500 but less than $7,500, (6) $156 if
10 the final rate of earnings is at least $7,500 but less than
11 $8,500, (7) $168 if the final rate of earnings is at least
12 $8,500 but less than $9,500, and (8) $180 if the final rate
13 of earnings is $9,500 or more, except that the annuity for
14 those persons having made an election under Section
15 15-154(a-1) shall be calculated and payable under the
16 portable retirement benefit program pursuant to the
17 provisions of Section 15-136.4.
18 Rule 4: A participant who is at least age 50 and has 25
19 or more years of service as a police officer or firefighter,
20 and a participant who is age 55 or over and has at least 20
21 but less than 25 years of service as a police officer or
22 firefighter, shall be entitled to a retirement annuity of
23 2 1/4% of the final rate of earnings for each of the first 10
24 years of service as a police officer or firefighter, 2 1/2%
25 for each of the next 10 years of service as a police officer
26 or firefighter, and 2 3/4% for each year of service as a
27 police officer or firefighter in excess of 20. The
28 retirement annuity for all other service shall be computed
29 under Rule 1.
30 For purposes of this Rule 4, a participant's service as a
31 firefighter shall also include the following:
32 (i) service that is performed while the person is
33 an employee under subsection (h) of Section 15-107; and
34 (ii) in the case of an individual who was a
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1 participating employee employed in the fire department of
2 the University of Illinois's Champaign-Urbana campus
3 immediately prior to the elimination of that fire
4 department and who immediately after the elimination of
5 that fire department transferred to another job with the
6 University of Illinois, service performed as an employee
7 of the University of Illinois in a position other than
8 police officer or firefighter, from the date of that
9 transfer until the employee's next termination of service
10 with the University of Illinois.
11 Rule 5: The retirement annuity of a participant who
12 elected early retirement under the provisions of Section
13 15-136.2 and who, on or before February 16 1995, brought
14 administrative proceedings pursuant to the administrative
15 rules adopted by the System to challenge the calculation of
16 his or her retirement annuity shall be the sum of the
17 following, determined from amounts credited to the
18 participant in accordance with the actuarial tables and the
19 prescribed rate of interest in effect at the time the
20 retirement annuity begins:
21 (i) the normal annuity which can be provided on an
22 actuarially equivalent basis, by the accumulated normal
23 contributions as of the date the annuity begins; and
24 (ii) an annuity from employer contributions of an
25 amount equal to that which can be provided on an
26 actuarially equivalent basis from the accumulated normal
27 contributions made by the participant under Section
28 15-113.6 and Section 15-113.7 plus 1.4 times all other
29 accumulated normal contributions made by the participant;
30 and
31 (iii) an annuity which can be provided on an
32 actuarially equivalent basis from the employee
33 contribution for early retirement under Section 15-136.2,
34 and an annuity from employer contributions of an amount
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1 equal to that which can be provided on an actuarially
2 equivalent basis from the employee contribution for early
3 retirement under Section 15-136.2.
4 In no event shall a retirement annuity under this Rule 5
5 be lower than the amount obtained by adding (1) the monthly
6 amount obtained by dividing the combined employee and
7 employer contributions made under Section 15-136.2 by the
8 System's annuity factor for the age of the participant at the
9 beginning of the annuity payment period and (2) the amount
10 equal to the participant's annuity if calculated under Rule
11 1, reduced under Section 15-136(b) as if no contributions had
12 been made under Section 15-136.2.
13 With respect to a participant who is qualified for a
14 retirement annuity under this Rule 5 whose retirement annuity
15 began before the effective date of this amendatory Act of the
16 91st General Assembly, and for whom an employee contribution
17 was made under Section 15-136.2, the System shall recalculate
18 the retirement annuity under this Rule 5 and shall pay any
19 additional amounts due in the manner provided in Section
20 15-186.1 for benefits mistakenly set too low.
21 The amount of a retirement annuity calculated under this
22 Rule 5 shall be computed solely on the basis of those
23 contributions specifically set forth in this Rule 5. Except
24 as provided in clause (iii) of this Rule 5, neither an
25 employee nor employer contribution for early retirement under
26 Section 15-136.2, nor any other employer contribution, shall
27 be used in the calculation of the amount of a retirement
28 annuity under this Rule 5.
29 The General Assembly has adopted the changes set forth in
30 Section 25 of this amendatory Act of the 91st General
31 Assembly in recognition that the decision of the Appellate
32 Court for the Fourth District in Mattis v. State Universities
33 Retirement System et al. might be deemed to give some right
34 to the plaintiff in that case. The changes made by Section
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1 25 of this amendatory Act of the 91st General Assembly are a
2 legislative implementation of the decision of the Appellate
3 Court for the Fourth District in Mattis v. State Universities
4 Retirement System et al. with respect to that plaintiff.
5 The changes made by Section 25 of this amendatory Act of
6 the 91st General Assembly apply without regard to whether the
7 person is in service as an employee on or after its effective
8 date.
9 (b) The retirement annuity provided under Rules 1 and 3
10 above shall be reduced by 1/2 of 1% for each month the
11 participant is under age 60 at the time of retirement.
12 However, this reduction shall not apply in the following
13 cases:
14 (1) For a disabled participant whose disability
15 benefits have been discontinued because he or she has
16 exhausted eligibility for disability benefits under
17 clause (6) of Section 15-152;
18 (2) For a participant who has at least the number
19 of years of service required to retire at any age under
20 subsection (a) of Section 15-135; or
21 (3) For that portion of a retirement annuity which
22 has been provided on account of service of the
23 participant during periods when he or she performed the
24 duties of a police officer or firefighter, if these
25 duties were performed for at least 5 years immediately
26 preceding the date the retirement annuity is to begin.
27 (c) The maximum retirement annuity provided under Rules
28 1, 2, and 4, and 5 shall be the lesser of (1) the annual
29 limit of benefits as specified in Section 415 of the Internal
30 Revenue Code of 1986, as such Section may be amended from
31 time to time and as such benefit limits shall be adjusted by
32 the Commissioner of Internal Revenue, and (2) 80% of final
33 rate of earnings.
34 (d) An annuitant whose status as an employee terminates
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1 after August 14, 1969 shall receive automatic increases in
2 his or her retirement annuity as follows:
3 Effective January 1 immediately following the date the
4 retirement annuity begins, the annuitant shall receive an
5 increase in his or her monthly retirement annuity of 0.125%
6 of the monthly retirement annuity provided under Rule 1, Rule
7 2, Rule 3, or Rule 4, or Rule 5, contained in this Section,
8 multiplied by the number of full months which elapsed from
9 the date the retirement annuity payments began to January 1,
10 1972, plus 0.1667% of such annuity, multiplied by the number
11 of full months which elapsed from January 1, 1972, or the
12 date the retirement annuity payments began, whichever is
13 later, to January 1, 1978, plus 0.25% of such annuity
14 multiplied by the number of full months which elapsed from
15 January 1, 1978, or the date the retirement annuity payments
16 began, whichever is later, to the effective date of the
17 increase.
18 The annuitant shall receive an increase in his or her
19 monthly retirement annuity on each January 1 thereafter
20 during the annuitant's life of 3% of the monthly annuity
21 provided under Rule 1, Rule 2, Rule 3, or Rule 4, or Rule 5
22 contained in this Section. The change made under this
23 subsection by P.A. 81-970 is effective January 1, 1980 and
24 applies to each annuitant whose status as an employee
25 terminates before or after that date.
26 Beginning January 1, 1990, all automatic annual increases
27 payable under this Section shall be calculated as a
28 percentage of the total annuity payable at the time of the
29 increase, including all increases previously granted under
30 this Article.
31 The change made in this subsection by P.A. 85-1008 is
32 effective January 26, 1988, and is applicable without regard
33 to whether status as an employee terminated before that date.
34 (e) If, on January 1, 1987, or the date the retirement
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1 annuity payment period begins, whichever is later, the sum of
2 the retirement annuity provided under Rule 1 or Rule 2 of
3 this Section and the automatic annual increases provided
4 under the preceding subsection or Section 15-136.1, amounts
5 to less than the retirement annuity which would be provided
6 by Rule 3, the retirement annuity shall be increased as of
7 January 1, 1987, or the date the retirement annuity payment
8 period begins, whichever is later, to the amount which would
9 be provided by Rule 3 of this Section. Such increased amount
10 shall be considered as the retirement annuity in determining
11 benefits provided under other Sections of this Article. This
12 paragraph applies without regard to whether status as an
13 employee terminated before the effective date of this
14 amendatory Act of 1987, provided that the annuitant was
15 employed at least one-half time during the period on which
16 the final rate of earnings was based.
17 (f) A participant is entitled to such additional annuity
18 as may be provided on an actuarially equivalent basis, by any
19 accumulated additional contributions to his or her credit.
20 However, the additional contributions made by the participant
21 toward the automatic increases in annuity provided under this
22 Section shall not be taken into account in determining the
23 amount of such additional annuity.
24 (g) If, (1) by law, a function of a governmental unit,
25 as defined by Section 20-107 of this Code, is transferred in
26 whole or in part to an employer, and (2) a participant
27 transfers employment from such governmental unit to such
28 employer within 6 months after the transfer of the function,
29 and (3) the sum of (A) the annuity payable to the participant
30 under Rule 1, 2, or 3 of this Section (B) all proportional
31 annuities payable to the participant by all other retirement
32 systems covered by Article 20, and (C) the initial primary
33 insurance amount to which the participant is entitled under
34 the Social Security Act, is less than the retirement annuity
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1 which would have been payable if all of the participant's
2 pension credits validated under Section 20-109 had been
3 validated under this system, a supplemental annuity equal to
4 the difference in such amounts shall be payable to the
5 participant.
6 (h) On January 1, 1981, an annuitant who was receiving a
7 retirement annuity on or before January 1, 1971 shall have
8 his or her retirement annuity then being paid increased $1
9 per month for each year of creditable service. On January 1,
10 1982, an annuitant whose retirement annuity began on or
11 before January 1, 1977, shall have his or her retirement
12 annuity then being paid increased $1 per month for each year
13 of creditable service.
14 (i) On January 1, 1987, any annuitant whose retirement
15 annuity began on or before January 1, 1977, shall have the
16 monthly retirement annuity increased by an amount equal to 8¢
17 per year of creditable service times the number of years that
18 have elapsed since the annuity began.
19 (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
20 eff. 8-16-97; 90-576, eff. 3-31-98; 90-655, eff. 7-30-98;
21 90-766, eff. 8-14-98.)
22 (40 ILCS 5/15-139) (from Ch. 108 1/2, par. 15-139)
23 Sec. 15-139. Retirement annuities; Cancellation;
24 Suspended during employment.
25 (a) If an annuitant returns to employment for an
26 employer within 60 days after the beginning of the retirement
27 annuity payment period, the retirement annuity shall be
28 cancelled, and the annuitant shall refund to the System the
29 total amount of the retirement annuity payments which he or
30 she received. If the retirement annuity is cancelled, the
31 participant shall continue to participate in the System.
32 (b) If an annuitant retires prior to age 60 and receives
33 or becomes entitled to receive during any month compensation
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1 in excess of the monthly retirement annuity for services
2 performed after the date of retirement for any employer under
3 this System, the State Employees' Retirement System of
4 Illinois, or the Teachers' Retirement System of the State of
5 Illinois, that portion of the monthly retirement annuity
6 provided by employer contributions shall not be payable.
7 If an annuitant retires at age 60 or over and receives or
8 becomes entitled to receive during any academic year
9 compensation in excess of the difference between his or her
10 highest annual earnings prior to retirement and his or her
11 annual retirement annuity computed under Rule 1, Rule 2, Rule
12 3, or Rule 4, or Rule 5 of Section 15-136 for services
13 performed after the date of retirement for any employer under
14 this System, that portion of the monthly retirement annuity
15 provided by employer contributions shall be reduced by an
16 amount equal to the compensation that exceeds such
17 difference.
18 However, any remuneration received for serving as a
19 member of the Illinois Educational Labor Relations Board
20 shall be excluded from "compensation" for the purposes of
21 this subsection (b), and serving as a member of the Illinois
22 Educational Labor Relations Board shall not be deemed to be a
23 return to employment for the purposes of this Section. This
24 provision applies without regard to whether service was
25 terminated prior to the effective date of this amendatory Act
26 of 1991.
27 (c) If an employer certifies that an annuitant has been
28 reemployed on a permanent and continuous basis or in a
29 position in which the annuitant is expected to serve for at
30 least 9 months, the annuitant shall resume his or her status
31 as a participating employee and shall be entitled to all
32 rights applicable to participating employees upon filing with
33 the board an election to forego all annuity payments during
34 the period of reemployment. Upon subsequent retirement, the
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1 retirement annuity shall consist of the annuity which was
2 terminated by the reemployment, plus the additional
3 retirement annuity based upon service granted during the
4 period of reemployment, but the combined retirement annuity
5 shall not exceed the maximum annuity applicable on the date
6 of the last retirement.
7 The total service and earnings credited before and after
8 the initial date of retirement shall be considered in
9 determining eligibility of the employee or the employee's
10 beneficiary to benefits under this Article, and in
11 calculating final rate of earnings.
12 In determining the death benefit payable to a beneficiary
13 of an annuitant who again becomes a participating employee
14 under this Section, accumulated normal and additional
15 contributions shall be considered as the sum of the
16 accumulated normal and additional contributions at the date
17 of initial retirement and the accumulated normal and
18 additional contributions credited after that date, less the
19 sum of the annuity payments received by the annuitant.
20 The survivors insurance benefits provided under Section
21 15-145 shall not be applicable to an annuitant who resumes
22 his or her status as a participating employee, unless the
23 annuitant, at the time of initial retirement, has a survivors
24 insurance beneficiary who could qualify for such benefits.
25 If the annuitant's employment is terminated because of
26 circumstances other than death before 9 months from the date
27 of reemployment, the provisions of this Section regarding
28 resumption of status as a participating employee shall not
29 apply. The normal and survivors insurance contributions which
30 are deducted during this period shall be refunded to the
31 annuitant without interest, and subsequent benefits under
32 this Article shall be the same as those which were applicable
33 prior to the date the annuitant resumed employment.
34 (Source: P.A. 86-1488.)
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1 (40 ILCS 5/15-146) (from Ch. 108 1/2, par. 15-146)
2 Sec. 15-146. Survivors insurance benefits - Minimum
3 amounts.
4 (a) The minimum total survivors annuity payable on
5 account of the death of a participant shall be 50% of the
6 retirement annuity which would have been provided under Rule
7 1, Rule 2, or Rule 3, or Rule 5 of Section 15-136 upon the
8 participant's attainment of the minimum age at which the
9 penalty for early retirement would not be applicable or the
10 date of the participant's death, whichever is later, on the
11 basis of credits earned prior to the time of death.
12 (b) The minimum total survivors annuity payable on
13 account of the death of an annuitant shall be 50% of the
14 retirement annuity which is payable under Section 15-136 at
15 the time of death or 50% of the disability retirement annuity
16 payable under Section 15-153.2. This minimum survivors
17 annuity shall apply to each participant and annuitant who
18 dies after September 16, 1979, whether or not his or her
19 employee status terminates before or after that date.
20 (c) If an annuitant has elected a reversionary annuity,
21 the retirement annuity referred to in this Section is that
22 which would have been payable had such election not been
23 filed.
24 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98.)
25 (40 ILCS 5/15-146.1) (from Ch. 108 1/2, par. 15-146.1)
26 Sec. 15-146.1. Survivors insurance benefits-Maximum
27 amounts. (a) The maximum total survivors annuity payable on
28 account of any deceased participating employee shall be the
29 lesser of: (1) 80% of the final rate of earnings; or (2) (A)
30 $400 per month if one survivors insurance beneficiary is
31 entitled to a survivors annuity, or (B) $600 per month if
32 there are 2 or more such beneficiaries.
33 (b) The maximum total survivors annuity payable on
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1 account of the death of any person occurring after retirement
2 or after termination of his or her employee status shall be
3 the lesser of: (1) 80% of the final rate of earnings; (2)
4 (A) $400 per month if one survivors insurance beneficiary is
5 entitled to a survivors annuity, or (B) $600 per month if
6 there are 2 or more such beneficiaries; or (3) 80% of the
7 retirement annuity payable to the annuitant at the date of
8 retirement under the provisions of Rule 1, Rule 2, or Rule 3,
9 or Rule 5 of Section 15-136, or 80% of the retirement annuity
10 which would have been payable to the participant upon
11 attainment of the minimum age at which the penalty for early
12 retirement would not be applicable or the date of death,
13 whichever is later, based upon credits earned as of the date
14 of death.
15 (c) The maximum total survivors annuity payable on
16 account of the death of any person whose death occurs while
17 in receipt of a disability retirement annuity under Section
18 15-153.2 shall be the lesser of (1) 80% of his or her final
19 rate of earnings, (2) (A) $400 per month if one survivors
20 insurance beneficiary is entitled to a survivors annuity, or
21 (B) $600 per month if 2 or more survivors insurance
22 beneficiaries qualify for this benefit, or (3) 80% of the
23 retirement annuity which would have been payable upon
24 attainment of the age at which the penalty for early
25 retirement would not be applicable or the date of death,
26 whichever is later, based upon the participant's credits on
27 the date of death, or 80% of the disability retirement
28 annuity whichever is greater.
29 (d) If the minimum annuity provided under Section 15-146
30 exceeds the maximum annuity provided under this Section, the
31 minimum annuity shall be payable.
32 (e) If an annuitant has elected a reversionary annuity,
33 the retirement annuity referred to in this Section is that
34 which would have been payable had such election not been
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1 filed.
2 (f) If a survivors insurance beneficiary qualifies for a
3 survivors or widows annuity because of pension credits
4 established by the participant or annuitant in another system
5 covered by Article 20, and the combined survivors annuities
6 exceed the highest survivors annuity which could be provided
7 by either system based upon the combined pension credits, the
8 survivors annuity payable by this system shall be reduced to
9 that amount which, when added to the survivors annuity
10 payable by the other system, would equal this highest
11 survivors annuity. If the other system has a similar
12 provision for adjustment of the survivors annuity, the
13 respective proportional survivors annuities shall be reduced
14 proportionately according to the ratio which the amount of
15 each proportional survivors annuity bears to the aggregate of
16 all proportional survivors annuities. If a survivors annuity
17 is payable by another system covered by Article 20, and the
18 survivor elects to waive the survivors annuity and accept a
19 lump sum payment or death benefit in lieu of the survivors
20 annuity, this system shall, for the purpose of adjusting the
21 survivors annuity under this subsection, assume that the
22 survivor was entitled to a survivors annuity which, in
23 accordance with actuarial tables of this system, is the
24 actuarial equivalent of the amount of the lump sum payment or
25 death benefit.
26 (g) The total monthly survivors annuity payable to the
27 beneficiaries of any annuitant who terminated employment
28 before July 14, 1959 and whose death occurs after September
29 16, 1977 shall not exceed $200.
30 (h) Whenever a reduction in the survivors annuity is
31 made as authorized above, the survivors annuity to each
32 dependent parent shall be proportionately reduced or
33 eliminated, and if further reduction is necessary, the
34 survivors annuity payable to every other person shall be
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1 proportionately decreased.
2 (Source: P.A. 86-272.)
3 (40 ILCS 5/15-154) (from Ch. 108 1/2, par. 15-154)
4 Sec. 15-154. Refunds.
5 (a) A participant whose status as an employee is
6 terminated, regardless of cause, or who has been on lay off
7 status for more than 120 days, and who is not on leave of
8 absence, is entitled to a refund of contributions upon
9 application; except that not more than one such refund
10 application may be made during any academic year.
11 Except as set forth in subsections (a-1) and (a-2), the
12 refund shall be the sum of the accumulated normal, additional
13 and survivors insurance contributions, less the amount of
14 interest credited on these contributions each year in excess
15 of 4 1/2% of the amount on which interest was calculated.
16 (a-1) A person who elects, in accordance with the
17 requirements of Section 15-134.5, to participate in the
18 portable benefit package and who becomes a participating
19 employee under that retirement program upon the conclusion of
20 the one-year waiting period applicable to the portable
21 benefit package election shall have his or her refund
22 calculated in accordance with the provisions of subsection
23 (a-2).
24 (a-2) The refund payable to a participant described in
25 subsection (a-1) shall be the sum of the participant's
26 accumulated normal and additional contributions, as defined
27 in Sections 15-116 and 15-117. If the participant terminates
28 with 5 or more years of service for employment as defined in
29 Section 15-113.1, he or she shall also be entitled to a
30 distribution of employer contributions in an amount equal to
31 the sum of the accumulated normal and additional
32 contributions, as defined in Sections 15-116 and 15-117.
33 (b) Upon acceptance of a refund, the participant
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1 forfeits all accrued rights and credits in the System, and if
2 subsequently reemployed, the participant shall be considered
3 a new employee subject to all the qualifying conditions for
4 participation and eligibility for benefits applicable to new
5 employees. If such person again becomes a participating
6 employee and continues as such for 2 years, or is employed by
7 an employer and participates for at least 2 years in the
8 Federal Civil Service Retirement System, all such rights,
9 credits, and previous status as a participant shall be
10 restored upon repayment of the amount of the refund, together
11 with compound interest thereon from the date the refund was
12 received to the date of repayment at the rate of 6% per annum
13 through August 31, 1982, and at the effective rates after
14 that date.
15 (c) If a participant covered under the transitional
16 benefit package has made survivors insurance contributions,
17 but has no survivors insurance beneficiary upon retirement,
18 he or she shall be entitled to a refund of the accumulated
19 survivors insurance contributions, or to an additional
20 annuity the value of which is equal to the accumulated
21 survivors insurance contributions.
22 (d) A participant, upon application, is entitled to a
23 refund of his or her accumulated additional contributions
24 attributable to the additional contributions described in the
25 last sentence of subsection (c) of Section 15-157. Upon the
26 acceptance of such a refund of accumulated additional
27 contributions, the participant forfeits all rights and
28 credits which may have accrued because of such contributions.
29 (e) A participant who terminates his or her employee
30 status and elects to waive service credit under Section
31 15-154.2, is entitled to a refund of the accumulated normal,
32 additional and survivors insurance contributions, if any,
33 which were credited the participant for this service, or to
34 an additional annuity the value of which is equal to the
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1 accumulated normal, additional and survivors insurance
2 contributions, if any; except that not more than one such
3 refund application may be made during any academic year. Upon
4 acceptance of this refund, the participant forfeits all
5 rights and credits accrued because of this service.
6 (f) If a police officer or firefighter receives a
7 retirement annuity under Rule 1 or 3 of Section 15-136, he or
8 she shall be entitled at retirement to a refund of the
9 difference between his or her accumulated normal
10 contributions and the normal contributions which would have
11 accumulated had such person filed a waiver of the retirement
12 formula provided by Rule 4 of Section 15-136.
13 (g) If, at the time of retirement, a participant would
14 be entitled to a retirement annuity under Rule 1, 2, 3, or 4,
15 or 5 of Section 15-136 that exceeds the maximum specified in
16 clause (1) of subsection (c) of Section 15-136, he or she
17 shall be entitled to a refund of the employee contributions,
18 if any, paid under Section 15-157 after the date upon which
19 continuance of such contributions would have otherwise caused
20 the retirement annuity to exceed this maximum, plus compound
21 interest at the effective rates.
22 (Source: P.A. 90-448, eff. 8-16-97; 90-576, eff. 3-31-98;
23 90-766, eff. 8-14-98.)
24 Section 90. Severability.
25 (a) It is the intent of the General Assembly that the
26 changes made by Section 25 of this amendatory Act of the 91st
27 General Assembly are not severable from one another, and
28 should any of the changes made by Section 25 be declared
29 invalid, then the remainder of those changes shall not remain
30 in effect.
31 (b) Except as set forth in subsection (a), the
32 provisions of this amendatory Act of the 91st General
33 Assembly are severable under Section 1.31 of the Statute on
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1 Statutes. Without limiting the foregoing, it is the intent
2 of the General Assembly that should the provisions of Section
3 25 of this amendatory Act of the 91st General Assembly be
4 declared invalid, then the remainder of this Act shall remain
5 in effect.".