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91_SB1020enr SB1020 Enrolled LRB9106091EGfg 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 SB1020 Enrolled -2- LRB9106091EGfg 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 this System in 25 excess of 20 years, and therefore a participant with at least 26 26 years of service in this System may retire at age 55 27 without any reduction in annuity. 28 The reduction in retirement annuity imposed by this 29 subsection shall not apply in the case of retirement on 30 account of disability. 31 (Source: P.A. 89-136, eff. 7-14-95.) 32 (40 ILCS 5/18-133) (from Ch. 108 1/2, par. 18-133) 33 Sec. 18-133. Financing; employee contributions. SB1020 Enrolled -3- LRB9106091EGfg 1 (a) Effective July 1, 1967, each participant is required 2 to contribute 7 1/2% of each payment of salary toward the 3 retirement annuity. Such contributions shall continue during 4 the entire time the participant is in service, with the 5 following exceptions: 6 (1) Contributions for the retirement annuity are 7 not required on salary received after 18 years of service 8 by persons who were participants before January 2, 1954. 9 (2) A participant who continues to serve as a judge 10 after becoming eligible to receive the maximum rate of 11 annuity may elect, through a written direction filed with 12 the Board, to discontinue contributing to the System. 13 Any such option elected by a judge shall be irrevocable 14 unless prior to January 1, 2000July 1, 1996, and while 15 continuing to serve as judge, the judge (A) files with 16 the Board a letter cancelling the direction to 17 discontinue contributing to the System and requesting 18 that such contributing resume, and (B) pays into the 19 System an amount equal to the total of the discontinued 20 contributions plus interest thereon at 5% per annum. 21 Service credits earned in any other "participating 22 system" as defined in Article 20 of this Code shall be 23 considered for purposes of determining a judge's 24 eligibility to discontinue contributions under this 25 subdivision (a)(2). 26 (3) A participant who (i) has attained age 60, (ii) 27 continues to serve as a judge after becoming eligible to 28 receive the maximum rate of annuity, and (iii) has not 29 elected to discontinue contributing to the System under 30 subdivision (a)(2) of this Section (or has revoked any 31 such election) may elect, through a written direction 32 filed with the Board, to make contributions to the System 33 based only on the amount of the increases in salary 34 received by the judge on or after the date of the SB1020 Enrolled -4- LRB9106091EGfg 1 election, rather than the total salary received. If a 2 judge who is making contributions to the System on the 3 effective date of this amendatory Act of the 91st General 4 Assembly makes an election to limit contributions under 5 this subdivision (a)(3) within 90 days after that 6 effective date, the election shall be deemed to become 7 effective on that effective date and the judge shall be 8 entitled to receive a refund of any excess contributions 9 paid to the System during that 90-day period; any other 10 election under this subdivision (a)(3) becomes effective 11 on the first of the month following the date of the 12 election. An election to limit contributions under this 13 subdivision (a)(3) is irrevocable. Service credits 14 earned in any other participating system as defined in 15 Article 20 of this Code shall be considered for purposes 16 of determining a judge's eligibility to make an election 17 under this subdivision (a)(3). 18 (b) Beginning July 1, 1969, each participant is required 19 to contribute 1% of each payment of salary towards the 20 automatic increase in annuity provided in Section 18-125.1. 21 However, such contributions need not be made by any 22 participant who has elected prior to September 15, 1969, not 23 to be subject to the automatic increase in annuity 24 provisions. 25 (c) Effective July 13, 1953, each married participant 26 subject to the survivor's annuity provisions is required to 27 contribute 2 1/2% of each payment of salary, whether or not 28 he or she is required to make any other contributions under 29 this Section. Such contributions shall be made concurrently 30 with the contributions made for annuity purposes. 31 (Source: P.A. 89-136, eff. 7-14-95.) 32 Section 99. Effective date. This Act takes effect upon 33 becoming law.