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91_SB0489
LRB9101796EGfgA
1 AN ACT to amend the Illinois Pension Code by changing
2 Sections 18-125 and 18-133.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Sections 18-125 and 18-133 as follows:
7 (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125)
8 Sec. 18-125. Retirement annuity amount.
9 (a) The annual retirement annuity for a participant who
10 terminated service as a judge prior to July 1, 1971 shall be
11 based on the law in effect at the time of termination of
12 service.
13 (b) Effective July 1, 1971, the retirement annuity for
14 any participant in service on or after such date shall be 3
15 1/2% of final average salary, as defined in this Section, for
16 each of the first 10 years of service, and 5% of such final
17 average salary for each year of service on excess of 10.
18 For purposes of this Section, final average salary shall
19 be:
20 (1) the average salary for the last 4 years of
21 credited service as a judge for a participant who
22 terminates service before July 1, 1975.
23 (2) for a participant who terminates service after
24 June 30, 1975 and before July 1, 1982, the salary on the
25 last day of employment as a judge.
26 (3) for any participant who terminates service
27 after June 30, 1982 and before January 1, 1990, the
28 average salary for the final year of service as a judge.
29 (4) for a participant who terminates service on or
30 after January 1, 1990 but before the effective date of
31 this amendatory Act of 1995, the salary on the last day
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1 of employment as a judge.
2 (5) for a participant who terminates service on or
3 after the effective date of this amendatory Act of 1995,
4 the salary on the last day of employment as a judge, or
5 the highest salary received by the participant for
6 employment as a judge in a position held by the
7 participant for at least 4 consecutive years, whichever
8 is greater.
9 However, in the case of a participant who elects to
10 discontinue contributions as provided in subdivision (a)(2)
11 of Section 18-133, the time of such election shall be
12 considered the last day of employment in the determination of
13 final average salary under this subsection.
14 The maximum retirement annuity for any participant shall
15 be 85% of final average salary.
16 (c) The retirement annuity for a participant who retires
17 prior to age 60 with less than 28 years of service in the
18 System shall be reduced 1/2 of 1% for each month that the
19 participant's age is under 60 years at the time the annuity
20 commences. However, for a participant who retires on or
21 after the effective date of this amendatory Act of the 91st
22 General Assembly, the percentage reduction in retirement
23 annuity imposed under this subsection shall be reduced by
24 5/12 of 1% for every month of service in excess of 20 years,
25 and therefore a participant with at least 26 years of service
26 may retire at age 55 without any reduction in annuity.
27 The reduction in retirement annuity imposed by this
28 subsection shall not apply in the case of retirement on
29 account of disability.
30 (Source: P.A. 89-136, eff. 7-14-95.)
31 (40 ILCS 5/18-133) (from Ch. 108 1/2, par. 18-133)
32 Sec. 18-133. Financing; employee contributions.
33 (a) Effective July 1, 1967, each participant is required
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1 to contribute 7 1/2% of each payment of salary toward the
2 retirement annuity. Such contributions shall continue during
3 the entire time the participant is in service, with the
4 following exceptions:
5 (1) Contributions for the retirement annuity are
6 not required on salary received after 18 years of service
7 by persons who were participants before January 2, 1954.
8 (2) A participant who continues to serve as a judge
9 after becoming eligible to receive the maximum rate of
10 annuity may elect, through a written direction filed with
11 the Board, to discontinue contributing to the System.
12 Any such option elected by a judge shall be irrevocable
13 unless prior to January 1, 2001 July 1, 1996, and while
14 continuing to serve as judge, the judge (A) files with
15 the Board a letter cancelling the direction to
16 discontinue contributing to the System and requesting
17 that such contributing resume, and (B) pays into the
18 System an amount equal to the total of the discontinued
19 contributions plus interest thereon at 5% per annum.
20 Service credits earned in any other "participating
21 system" as defined in Article 20 of this Code shall be
22 considered for purposes of determining a judge's
23 eligibility to discontinue contributions under this
24 subdivision (a)(2).
25 (3) A participant who (i) continues to serve as a
26 judge after becoming eligible to receive the maximum rate
27 of annuity and (ii) has not elected to discontinue
28 contributing to the System under subdivision (a)(2) of
29 this Section (or has revoked any such election) may
30 elect, through a written direction filed with the Board,
31 to make contributions to the System based only on the
32 amount of the increases in salary received by the judge
33 on or after the date of the election, rather than the
34 total salary received. If a judge who is making
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1 contributions to the System on the effective date of this
2 amendatory Act of the 91st General Assembly makes an
3 election to limit contributions under this subdivision
4 (a)(3) within 90 days after that effective date, the
5 election shall be deemed to become effective on that
6 effective date and the judge shall be entitled to receive
7 a refund of any excess contributions paid to the System
8 during that 90-day period; any other election under this
9 subdivision (a)(3) becomes effective on the first of the
10 month following the date of the election. An election to
11 limit contributions under this subdivision (a)(3) is
12 irrevocable. Service credits earned in any other
13 participating system as defined in Article 20 of this
14 Code shall be considered for purposes of determining a
15 judge's eligibility to make an election under this
16 subdivision (a)(3).
17 (b) Beginning July 1, 1969, each participant is required
18 to contribute 1% of each payment of salary towards the
19 automatic increase in annuity provided in Section 18-125.1.
20 However, such contributions need not be made by any
21 participant who has elected prior to September 15, 1969, not
22 to be subject to the automatic increase in annuity
23 provisions.
24 (c) Effective July 13, 1953, each married participant
25 subject to the survivor's annuity provisions is required to
26 contribute 2 1/2% of each payment of salary, whether or not
27 he or she is required to make any other contributions under
28 this Section. Such contributions shall be made concurrently
29 with the contributions made for annuity purposes.
30 (Source: P.A. 89-136, eff. 7-14-95.)
31 Section 99. Effective date. This Act takes effect upon
32 becoming law.