State of Illinois
91st General Assembly
Legislation

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91_SB1047ham001

 










                                           LRB9105902EGfgam03

 1                    AMENDMENT TO SENATE BILL 1047

 2        AMENDMENT NO.     .  Amend Senate Bill 1047 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 14-103.05, 14-106, 14-107, 14-108, 14-110,
 9    14-114, 14-133, 16-132, 16-133, and 16-133.1 as follows:

10        (40 ILCS 5/14-103.05) (from Ch. 108 1/2, par. 14-103.05)
11        Sec. 14-103.05.  Employee.
12        (a)  Any person employed by  a  Department  who  receives
13    salary  for personal services rendered to the Department on a
14    warrant issued pursuant to a payroll voucher certified  by  a
15    Department  and drawn by the State Comptroller upon the State
16    Treasurer,  including  an  elected  official   described   in
17    subparagraph  (d) of Section 14-104, shall become an employee
18    for purpose of membership in the  Retirement  System  on  the
19    first day of such employment.
20        A person entering service on or after January 1, 1972 and
21    prior to January 1, 1984 shall become a member as a condition
 
                            -2-            LRB9105902EGfgam03
 1    of  employment and shall begin making contributions as of the
 2    first day of employment.
 3        A person entering service on or  after  January  1,  1984
 4    shall,  upon  completion  of  6  months of continuous service
 5    which is not interrupted by a break of more  than  2  months,
 6    become  a member as a condition of employment.  Contributions
 7    shall begin the first of the month after  completion  of  the
 8    qualifying period.
 9        The  qualifying  period  of  6  months  of service is not
10    applicable to:  (1) a person who has been granted credit  for
11    service  in  a  position  covered  by  the State Universities
12    Retirement System, the Teachers'  Retirement  System  of  the
13    State of Illinois, the General Assembly Retirement System, or
14    the  Judges Retirement System of Illinois unless that service
15    has been forfeited under the laws of  those  systems;  (2)  a
16    person  entering  service  on  or  after  July  1,  1991 in a
17    noncovered  position;  or  (3)  a  person  to  whom   Section
18    14-108.2a or 14-108.2b applies.
19        (b)  The term "employee" does not include the following:
20             (1)  members  of  the State Legislature, and persons
21        electing  to  become  members  of  the  General  Assembly
22        Retirement System pursuant to Section 2-105;
23             (2)  incumbents of offices normally filled  by  vote
24        of the people;
25             (3)  except  as  otherwise provided in this Section,
26        any person appointed by the Governor with the advice  and
27        consent  of  the  Senate  unless  that  person  elects to
28        participate in this system;
29             (4)  except as provided  in  Section  14-108.2,  any
30        person  who  is  covered or eligible to be covered by the
31        Teachers' Retirement System of the State of Illinois, the
32        State  Universities  Retirement  System,  or  the  Judges
33        Retirement System of Illinois;
34             (5)  an employee of  a  municipality  or  any  other
 
                            -3-            LRB9105902EGfgam03
 1        political subdivision of the State;
 2             (6)  any  person  who becomes an employee after June
 3        30,  1979  as  a  public   service   employment   program
 4        participant  under  the  Federal Comprehensive Employment
 5        and Training Act and whose wages or fringe  benefits  are
 6        paid  in  whole  or  in part by funds provided under such
 7        Act;
 8             (7)  enrollees   of   the   Illinois   Young   Adult
 9        Conservation   Corps   program,   administered   by   the
10        Department  of  Natural  Resources,  authorized   grantee
11        pursuant  to  Title VIII of the "Comprehensive Employment
12        and Training  Act  of  1973",  29  USC  993,  as  now  or
13        hereafter amended;
14             (8)  enrollees   and  temporary  staff  of  programs
15        administered by the Department of Natural Resources under
16        the Youth Conservation Corps Act of 1970;
17             (9)  any person who is a member of any  professional
18        licensing  or  disciplinary  board  created  under an Act
19        administered by the Department of Professional Regulation
20        or a successor agency or created or re-created after  the
21        effective  date  of  this amendatory Act of 1997, and who
22        receives per diem  compensation  rather  than  a  salary,
23        notwithstanding  that  such per diem compensation is paid
24        by warrant issued pursuant to  a  payroll  voucher;  such
25        persons  have  never  been  included in the membership of
26        this System,  and  this  amendatory  Act  of  1987  (P.A.
27        84-1472)  is  not  intended  to  effect any change in the
28        status of such persons;
29             (10)  any person who is a  member  of  the  Illinois
30        Health  Care  Cost  Containment Council, and receives per
31        diem compensation rather than a  salary,  notwithstanding
32        that such per diem compensation is paid by warrant issued
33        pursuant  to  a  payroll voucher; such persons have never
34        been included in the membership of this System, and  this
 
                            -4-            LRB9105902EGfgam03
 1        amendatory  Act  of  1987  is  not intended to effect any
 2        change in the status of such persons; or
 3             (11)  any person who is a member of the Oil and  Gas
 4        Board  created by Section 1.2 of the Illinois Oil and Gas
 5        Act, and receives per diem  compensation  rather  than  a
 6        salary,  notwithstanding  that such per diem compensation
 7        is paid by warrant issued pursuant to a payroll voucher.
 8        (c)  An individual who is employed on a  full-time  basis
 9    as  an  officer or employee of a statewide labor organization
10    that represents members of this System may participate in the
11    System and shall be deemed an employee, provided that (1) the
12    individual has previously  earned  creditable  service  under
13    this  Article,  (2)  the  individual files with the System an
14    irrevocable election to become a  participant,  and  (3)  the
15    individual  does not receive credit for that employment under
16    any other public or private pension plan or retirement system
17    (other  than  social  security).   An  employee  under   this
18    subsection  (c)  is responsible for paying to the System both
19    (i) employee contributions based on compensation  as  defined
20    in  this  subsection and (ii) employer contributions based on
21    that compensation and the percentage of payroll certified  by
22    the board; all or any part of these contributions may be paid
23    on  the  employee's  behalf or picked up for tax purposes (if
24    authorized under federal law) by the labor organization.
25        While participating in the System under  this  subsection
26    (c), the participant's rate of compensation, for all purposes
27    of  this  Article  and the Retirement Systems Reciprocal Act,
28    shall be deemed to be  the  rate  of  compensation  that  the
29    participant would have received if he or she had continued in
30    the  position  that  he  or  she  held  on the last day as an
31    employee in this  System  prior  to  beginning  participation
32    under   this   subsection   (c),   including   all  scheduled
33    satisfactory performance increases and other salary increases
34    applicable from time to time to persons in that position (or,
 
                            -5-            LRB9105902EGfgam03
 1    if that position is  eliminated,  applicable  to  persons  in
 2    similar  positions under the same pay plan or its successor).
 3    The  rate  of  compensation  for  a  participant  under  this
 4    subsection (c) shall be determined by the Board, in its  sole
 5    discretion.
 6        A person who is an employee as defined in this subsection
 7    may  establish service credit for similar employment prior to
 8    becoming an employee under this subsection by paying  to  the
 9    System  for  that  employment  the contributions specified in
10    this subsection, plus interest at the effective rate from the
11    date of service to the  date  of  payment.   However,  credit
12    shall not be granted under this subsection for any such prior
13    employment  for which the applicant received credit under any
14    other public or private pension  plan  or  retirement  system
15    (other than social security).
16    (Source:  P.A.  89-246;  eff.  8-4-95;  89-445,  eff. 2-7-96;
17    90-448, eff. 8-16-97.)

18        (40 ILCS 5/14-106) (from Ch. 108 1/2, par. 14-106)
19        Sec. 14-106.  Membership service credit.
20        (a)  After January 1, 1944, all service of a member since
21    he last became a member with respect to  which  contributions
22    are  made  shall  count as membership service; provided, that
23    for service on and after July 1, 1950, 12 months  of  service
24    shall constitute a year of membership service, the completion
25    of  15  days  or  more  of  service  during  any  month shall
26    constitute 1 month of membership service, 8 to 15 days  shall
27    constitute  1/2  month  of membership service and less than 8
28    days shall constitute 1/4 month of membership service.    The
29    payroll record of each department shall constitute conclusive
30    evidence of the record of service rendered by a member.
31        (b)  For  a  member  who  is  employed  and  paid  on  an
32    academic-year  basis  rather than on a 12-month annual basis,
33    employment for a full academic year shall constitute  a  full
 
                            -6-            LRB9105902EGfgam03
 1    year  of membership service, except that the member shall not
 2    receive more than one year of membership service credit (plus
 3    any additional service credit granted for unused sick  leave)
 4    for  service during any 12-month period.  This subsection (b)
 5    applies to all such service for  which  the  member  has  not
 6    begun  to  receive  a retirement annuity before the effective
 7    date of this amendatory Act of the 91st General Assembly.
 8        (c)  A member shall be  entitled  to  additional  service
 9    credit,  under rules prescribed by the Board, for accumulated
10    unused sick  leave  credited  to  his  account  in  the  last
11    Department  on the date of withdrawal from service or for any
12    period for which he  would  have  been  eligible  to  receive
13    benefits  under  a sick pay plan authorized by law, if he had
14    suffered a sickness or accident on  the  date  of  withdrawal
15    from  service.   It  shall  be the responsibility of the last
16    Department to certify to the Board the length of time  salary
17    or benefits would have been paid to the member based upon the
18    accumulated unused sick leave or the applicable sick pay plan
19    if  he had become entitled thereto because of sickness on the
20    date that his status as an employee terminated.  This  period
21    of  service  credit granted under this paragraph shall not be
22    considered in determining the date the retirement annuity  is
23    to begin, or final average compensation.
24    (Source: P.A. 87-1265.)

25        (40 ILCS 5/14-107) (from Ch. 108 1/2, par. 14-107)
26        Sec.  14-107.   Retirement  annuity  -  service and age -
27    conditions.  A member is entitled  to  a  retirement  annuity
28    after having at least 8 years of creditable service.
29        A  member who has at least 35 years of creditable service
30    may claim his or her retirement annuity at any age.  A member
31    having at least 8 years of creditable service but  less  than
32    35  may  claim  his  or  her retirement annuity upon or after
33    attainment of age 60  or,  beginning  January  1,  2001,  any
 
                            -7-            LRB9105902EGfgam03
 1    lesser age which, when added to the number of years of his or
 2    her creditable service, equals at least 85.  A member upon or
 3    after  attainment of age 55 having at least 25 years 30 years
 4    of creditable service  (30  years  if  retirement  is  before
 5    January  1,  2001)  may elect to receive the lower retirement
 6    annuity provided in paragraph (c) of Section 14-108  of  this
 7    Code.   For  purposes  of  the  rule of 85, portions of years
 8    shall be counted in whole months.
 9        The allowance shall begin with the  first  full  calendar
10    month  specified  in  the  member's application therefor, the
11    first day of which shall not be before the date of withdrawal
12    as  approved  by  the  board.   Regardless  of  the  date  of
13    withdrawal, the allowance need not begin within one  year  of
14    application therefor.
15    (Source: P.A. 82-342.)

16        (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
17        Sec. 14-108.  Amount of retirement annuity.  A member who
18    has contributed to the System for at least 12 months shall be
19    entitled  to  a  prior  service  annuity  for  each  year  of
20    certified prior service credited to him, except that a member
21    shall  receive 1/3 of the prior service annuity for each year
22    of service for which contributions have been made and all  of
23    such  annuity  shall  be  payable  after  the member has made
24    contributions for a period of 3 years.  Proportionate amounts
25    shall be payable for service of less than a full  year  after
26    completion of at least 12 months.
27        The   total   period  of  service  to  be  considered  in
28    establishing the  measure  of  prior  service  annuity  shall
29    include  service  credited in the Teachers' Retirement System
30    of  the  State  of  Illinois  and  the   State   Universities
31    Retirement  System  for which contributions have been made by
32    the member to such systems; provided that at least 1 year  of
33    the total period of 3 years prescribed for the allowance of a
 
                            -8-            LRB9105902EGfgam03
 1    full  measure  of  prior  service  annuity  shall  consist of
 2    membership service in this system for which credit  has  been
 3    granted.
 4        (a)  In  the  case  of  a  member who retires on or after
 5    January 1, 1998 and is a noncovered employee, the  retirement
 6    annuity  for  membership  service  and prior service shall be
 7    2.2% of final average compensation for each year of  service.
 8    Any service credit established as a covered employee shall be
 9    computed as stated in paragraph (b).
10        (b)  In  the  case  of  a  member who retires on or after
11    January 1, 1998 and is a  covered  employee,  the  retirement
12    annuity  for  membership  service  and prior service shall be
13    computed as stated in paragraph (a) for  all  service  credit
14    established  as  a  noncovered  employee;  for service credit
15    established as a covered employee it shall be 1.67% of  final
16    average compensation for each year of service.
17        (c)  For  a  member  with  30  but  less than 35 years of
18    creditable service retiring after attaining age 55 but before
19    age 60 with at least 30 but less than 35 years of  creditable
20    service  if  retirement is before January 1, 2001, or with at
21    least 25 but less than 30  years  of  creditable  service  if
22    retirement  is  on  or  after January 1, 2001, the retirement
23    annuity shall be reduced by 1/2 of 1% for each month that the
24    member's age is under age 60 at the time of retirement.
25        (d)  A retirement annuity shall not exceed 75%  of  final
26    average compensation, subject to such extension as may result
27    from the application of Section 14-114 or Section 14-115.
28        (e)  The   retirement  annuity  payable  to  any  covered
29    employee who is a member of the  System  and  in  service  on
30    January 1, 1969, or in service thereafter in 1969 as a result
31    of  legislation  enacted  by  the  Illinois  General Assembly
32    transferring the  member  to  State  employment  from  county
33    employment  in  a county Department of Public Aid in counties
34    of 3,000,000 or more population, under a plan of coordination
 
                            -9-            LRB9105902EGfgam03
 1    with  the  Old  Age,  Survivors  and  Disability   provisions
 2    thereof,  if not fully insured for Old Age Insurance payments
 3    under the Federal Old Age, Survivors and Disability Insurance
 4    provisions at the date of acceptance of a retirement annuity,
 5    shall not be less than the amount for which the member  would
 6    have been eligible if coordination were not applicable.
 7        (f)  The   retirement  annuity  payable  to  any  covered
 8    employee who is a member of the  System  and  in  service  on
 9    January 1, 1969, or in service thereafter in 1969 as a result
10    of  the  legislation  designated in the immediately preceding
11    paragraph, if fully insured for Old  Age  Insurance  payments
12    under  the  Federal  Social  Security  Act  at  the  date  of
13    acceptance of a retirement annuity, shall not be less than an
14    amount  which  when  added  to  the Primary Insurance Benefit
15    payable to the member upon attainment of age  65  under  such
16    Federal  Act, will equal the annuity which would otherwise be
17    payable  if  the  coordinated  plan  of  coverage  were   not
18    applicable.
19        (g)  In  the  case  of  a  member  who  is  a  noncovered
20    employee,  the retirement annuity for membership service as a
21    security  employee  of  the  Department  of  Corrections   or
22    security  employee  of the Department of Human Services shall
23    be:  if retirement occurs on or after January 1, 2001, 3%  of
24    final  average  compensation  for  each  year  of  creditable
25    service; or if retirement occurs before January 1, 2001, 1.9%
26    of  final average compensation for each of the first 10 years
27    of service,; 2.1% for each of the next 10 years of  service,;
28    2.25%  for  each  year  of  service  in  excess of 20 but not
29    exceeding 30,; and 2.5% for each year in excess of 30; except
30    that the annuity  may  be  calculated  under  subsection  (a)
31    rather  than  this subsection (g) if the resulting annuity is
32    greater.
33        (h)  In the case of a member who is a  covered  employee,
34    the  retirement  annuity for membership service as a security
 
                            -10-           LRB9105902EGfgam03
 1    employee  of  the  Department  of  Corrections  or   security
 2    employee  of  the  Department of Human Services shall be:  if
 3    retirement occurs on or after January 1, 2001, 2.5% of  final
 4    average  compensation for each year of creditable service; if
 5    retirement occurs before January  1,  2001,  1.67%  of  final
 6    average  compensation  for  each  of  the  first  10 years of
 7    service,; 1.90% for each of the next 10  years  of  service,;
 8    2.10%  for  each  year  of  service  in  excess of 20 but not
 9    exceeding 30,; and 2.30% for each year in excess of 30.
10        (i)  For the purposes of this Section and Section  14-133
11    of this Act, the term "security employee of the Department of
12    Corrections"   and   the   term  "security  employee  of  the
13    Department  of  Human  Services"  shall  have  the   meanings
14    ascribed to them in subsection (c) of Section 14-110.
15        (j)  The   retirement   annuity   computed   pursuant  to
16    paragraphs (g) or (h)  shall  be  applicable  only  to  those
17    security  employees  of  the  Department  of  Corrections and
18    security employees of the Department of  Human  Services  who
19    have  at least 20 years of membership service and who are not
20    eligible for  the  alternative  retirement  annuity  provided
21    under  Section 14-110.  However, persons transferring to this
22    System under Section 14-108.2 who have service  credit  under
23    Article  16  of  this  Code  may  count  such  service toward
24    establishing their  eligibility  under  the  20-year  service
25    requirement  of this subsection; but such service may be used
26    only for establishing  such  eligibility,  and  not  for  the
27    purpose of increasing or calculating any benefit.
28        (k)  (Blank).
29        (l)  The  changes to this Section made by this amendatory
30    Act of 1997 (changing  certain  retirement  annuity  formulas
31    from  a  stepped  rate  to  a flat rate) apply to members who
32    retire on or after January 1, 1998, without regard to whether
33    employment terminated  before  the  effective  date  of  this
34    amendatory  Act  of 1997.  An annuity shall not be calculated
 
                            -11-           LRB9105902EGfgam03
 1    in steps by using the new flat rate for some  steps  and  the
 2    superseded  stepped  rate for other steps of the same type of
 3    service.
 4    (Source:  P.A.  89-507,  eff.  7-1-97;  90-65,  eff.  7-7-97;
 5    90-448, eff. 8-16-97; 90-655, eff. 7-30-98.)

 6        (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
 7        Sec. 14-110.  Alternative retirement annuity.
 8        (a)  Any member who has withdrawn from service  with  not
 9    less  than  20  years  of eligible creditable service and has
10    attained age 55,  and  any  member  who  has  withdrawn  from
11    service  with  not  less than 25 years of eligible creditable
12    service and has attained age 50, regardless  of  whether  the
13    attainment  of  either of the specified ages occurs while the
14    member is still in service, shall be entitled to  receive  at
15    the  option  of the member, in lieu of the regular or minimum
16    retirement  annuity,  a  retirement   annuity   computed   as
17    follows:
18             (i)  for   periods   of   service  as  a  noncovered
19        employee: if retirement occurs on  or  after  January  1,
20        2001,  3%  of final average compensation for each year of
21        creditable service; if retirement occurs  before  January
22        1, 2001, 2 1/4% of final average compensation for each of
23        the first 10 years of creditable service, 2 1/2% for each
24        year  above  10  years  to  and  including  20  years  of
25        creditable   service,   and  2  3/4%  for  each  year  of
26        creditable service above 20 years; and
27             (ii)  for periods of eligible creditable service  as
28        a  covered  employee:  if  retirement  occurs on or after
29        January 1, 2001, 2.5% of final average  compensation  for
30        each  year  of  creditable  service; if retirement occurs
31        before  January  1,  2001,   1.67%   of   final   average
32        compensation  for  each  of  the  first  10 years of such
33        service, 1.90% for each of the  next  10  years  of  such
 
                            -12-           LRB9105902EGfgam03
 1        service, 2.10% for each year of such service in excess of
 2        20  but  not  exceeding  30,  and  2.30% for each year in
 3        excess of 30.
 4        Such annuity shall be subject to  a  maximum  of  75%  of
 5    final   average  compensation  if  retirement  occurs  before
 6    January 1, 2001 or to a  maximum  of  80%  of  final  average
 7    compensation  if  retirement  occurs  on  or after January 1,
 8    2001.
 9        These rates  shall  not  be  applicable  to  any  service
10    performed  by  a  member  as  a covered employee which is not
11    eligible creditable service.  Service as a  covered  employee
12    which  is not eligible creditable service shall be subject to
13    the rates and provisions of Section 14-108.
14        (b)  For  the  purpose   of   this   Section,   "eligible
15    creditable  service"  means creditable service resulting from
16    service in one or more of the following positions:
17             (1)  State policeman;
18             (2)  fire fighter in the fire protection service  of
19        a department;
20             (3)  air pilot;
21             (4)  special agent;
22             (5)  investigator for the Secretary of State;
23             (6)  conservation police officer;
24             (7)  investigator for the Department of Revenue;
25             (8)  security  employee  of  the Department of Human
26        Services;
27             (9)  Central  Management  Services  security  police
28        officer;
29             (10)  security  employee  of   the   Department   of
30        Corrections;
31             (11)  dangerous drugs investigator;
32             (12)  investigator   for  the  Department  of  State
33        Police;
34             (13)  investigator for the Office  of  the  Attorney
 
                            -13-           LRB9105902EGfgam03
 1        General;
 2             (14)  controlled substance inspector;
 3             (15)  investigator  for  the  Office  of the State's
 4        Attorneys Appellate Prosecutor;
 5             (16)  Commerce Commission police officer;
 6             (17)  arson investigator.
 7        A person employed in one of the  positions  specified  in
 8    this  subsection  is  entitled to eligible creditable service
 9    for service credit earned under this Article while undergoing
10    the basic police training course approved by the Illinois Law
11    Enforcement Training Standards Board, if completion  of  that
12    training  is  required  of  persons serving in that position.
13    For the purposes of this Code, service  during  the  required
14    basic  police  training course shall be deemed performance of
15    the duties of the specified position, even though the  person
16    is not a sworn peace officer at the time of the training.
17        (c)  For the purposes of this Section:
18             (1)  The  term  "state policeman" includes any title
19        or position in the Department of  State  Police  that  is
20        held  by  an  individual  employed under the State Police
21        Act.
22             (2)  The term "fire fighter in the  fire  protection
23        service  of  a  department" includes all officers in such
24        fire  protection  service  including  fire   chiefs   and
25        assistant fire chiefs.
26             (3)  The  term  "air  pilot"  includes  any employee
27        whose official job description on file in the  Department
28        of  Central  Management Services, or in the department by
29        which he is employed if that department is not covered by
30        the Personnel Code, states that his principal duty is the
31        operation  of  aircraft,  and  who  possesses  a  pilot's
32        license; however, the change in this definition  made  by
33        this  amendatory Act of 1983 shall not operate to exclude
34        any noncovered employee who was an "air  pilot"  for  the
 
                            -14-           LRB9105902EGfgam03
 1        purposes of this Section on January 1, 1984.
 2             (4)  The  term  "special agent" means any person who
 3        by reason of  employment  by  the  Division  of  Narcotic
 4        Control,  the  Bureau  of Investigation or, after July 1,
 5        1977,  the  Division  of  Criminal   Investigation,   the
 6        Division  of  Internal  Investigation,  the  Division  of
 7        Operations,  or  any  other  Division  or  organizational
 8        entity in the Department of State Police is vested by law
 9        with   duties   to  maintain  public  order,  investigate
10        violations of the criminal law of this State, enforce the
11        laws of this State, make arrests  and  recover  property.
12        The  term  "special agent" includes any title or position
13        in the Department of State Police  that  is  held  by  an
14        individual employed under the State Police Act.
15             (5)  The  term  "investigator  for  the Secretary of
16        State" means any person employed by  the  Office  of  the
17        Secretary  of  State  and  vested with such investigative
18        duties as render him ineligible for  coverage  under  the
19        Social  Security  Act by reason of Sections 218(d)(5)(A),
20        218(d)(8)(D) and 218(l)(1) of that Act.
21             A person who became employed as an investigator  for
22        the  Secretary  of  State  between  January  1,  1967 and
23        December 31, 1975, and  who  has  served  as  such  until
24        attainment  of  age  60,  either  continuously  or with a
25        single  break  in  service  of  not  more  than  3  years
26        duration, which break terminated before January 1,  1976,
27        shall   be   entitled  to  have  his  retirement  annuity
28        calculated    in   accordance   with   subsection    (a),
29        notwithstanding  that he has less than 20 years of credit
30        for such service.
31             (6)  The term "Conservation  Police  Officer"  means
32        any person employed by the Division of Law Enforcement of
33        the  Department of Natural Resources and vested with such
34        law enforcement  duties  as  render  him  ineligible  for
 
                            -15-           LRB9105902EGfgam03
 1        coverage  under  the  Social  Security  Act  by reason of
 2        Sections 218(d)(5)(A),  218(d)(8)(D),  and  218(l)(1)  of
 3        that   Act.    The  term  "Conservation  Police  Officer"
 4        includes  the  positions  of  Chief  Conservation  Police
 5        Administrator   and   Assistant    Conservation    Police
 6        Administrator.
 7             (7)  The  term  "investigator  for the Department of
 8        Revenue" means any person employed by the  Department  of
 9        Revenue  and  vested  with  such  investigative duties as
10        render him  ineligible  for  coverage  under  the  Social
11        Security   Act   by   reason  of  Sections  218(d)(5)(A),
12        218(d)(8)(D) and 218(l)(1) of that Act.
13             (8)  The term "security employee of  the  Department
14        of  Human  Services"  means  any  person  employed by the
15        Department of Human Services who (i) is employed  at  the
16        Chester  Mental  Health Center and has daily contact with
17        the residents thereof, (ii) is employed within a security
18        unit at a facility operated by  the  Department  and  has
19        daily  contact  with  the residents of the security unit,
20        (iii)  is  employed  at  a  facility  operated   by   the
21        Department that includes a security unit and is regularly
22        scheduled  to  work  at  least  50% of his or her working
23        hours within that security unit, or (iv) who is a  mental
24        health  police  officer.   "Mental health police officer"
25        means any person employed  by  the  Department  of  Human
26        Services  in  a  position  pertaining to the Department's
27        mental health and  developmental  disabilities  functions
28        who  is vested with such law enforcement duties as render
29        the person  ineligible  for  coverage  under  the  Social
30        Security   Act   by   reason  of  Sections  218(d)(5)(A),
31        218(d)(8)(D) and 218(l)(1) of that Act.  "Security  unit"
32        means  that  portion of a facility that is devoted to the
33        care, containment, and treatment of persons committed  to
34        the  Department  of  Human  Services  as sexually violent
 
                            -16-           LRB9105902EGfgam03
 1        persons, persons unfit to stand  trial,  or  persons  not
 2        guilty  by  reason  of  insanity.   With  respect to past
 3        employment,  references  to  the  Department   of   Human
 4        Services  include  its  predecessor,  the  Department  of
 5        Mental Health and Developmental Disabilities.
 6             (9)  "Central  Management  Services  security police
 7        officer" means any person employed by the  Department  of
 8        Central  Management  Services who is vested with such law
 9        enforcement duties as render him ineligible for  coverage
10        under  the  Social  Security  Act  by  reason of Sections
11        218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
12             (10)  The term "security employee of the  Department
13        of  Corrections"  means any employee of the Department of
14        Corrections or the former Department  of  Personnel,  and
15        any  member or employee of the Prisoner Review Board, who
16        has daily  contact  with  inmates  by  working  within  a
17        correctional  facility  or  who is a parole officer or an
18        employee who has direct contact with committed persons in
19        the performance of his or her job duties.
20             (11)  The term "dangerous drugs investigator"  means
21        any  person  who is employed as such by the Department of
22        Human Services.
23             (12)  The term "investigator for the  Department  of
24        State  Police"  means a person employed by the Department
25        of State Police who is vested  under  Section  4  of  the
26        Narcotic  Control  Division  Abolition  Act with such law
27        enforcement powers as render him ineligible for  coverage
28        under  the  Social  Security  Act  by  reason of Sections
29        218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
30             (13)  "Investigator for the Office of  the  Attorney
31        General"  means any person who is employed as such by the
32        Office of the Attorney General and is  vested  with  such
33        investigative   duties   as  render  him  ineligible  for
34        coverage under the  Social  Security  Act  by  reason  of
 
                            -17-           LRB9105902EGfgam03
 1        Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that
 2        Act.   For  the  period  before January 1, 1989, the term
 3        includes all persons who were employed  as  investigators
 4        by  the Office of the Attorney General, without regard to
 5        social security status.
 6             (14)  "Controlled  substance  inspector"  means  any
 7        person who is employed  as  such  by  the  Department  of
 8        Professional  Regulation  and  is  vested  with  such law
 9        enforcement duties as render him ineligible for  coverage
10        under  the  Social  Security  Act  by  reason of Sections
11        218(d)(5)(A), 218(d)(8)(D) and  218(l)(1)  of  that  Act.
12        The  term  "controlled  substance inspector" includes the
13        Program  Executive  of  Enforcement  and  the   Assistant
14        Program Executive of Enforcement.
15             (15)  The  term  "investigator for the Office of the
16        State's Attorneys Appellate Prosecutor"  means  a  person
17        employed  in that capacity on a full time basis under the
18        authority  of  Section  7.06  of  the  State's  Attorneys
19        Appellate Prosecutor's Act.
20             (16)  "Commerce Commission police officer" means any
21        person employed by the Illinois Commerce  Commission  who
22        is  vested with such law enforcement duties as render him
23        ineligible for coverage under the Social Security Act  by
24        reason   of   Sections  218(d)(5)(A),  218(d)(8)(D),  and
25        218(l)(1) of that Act.
26             (17)  "Arson investigator" means any person  who  is
27        employed  as such by the Office of the State Fire Marshal
28        and is vested with such law enforcement duties as  render
29        the  person  ineligible  for  coverage  under  the Social
30        Security  Act  by  reason   of   Sections   218(d)(5)(A),
31        218(d)(8)(D),  and  218(l)(1)  of that Act.  A person who
32        was employed as an arson investigator on January 1,  1995
33        and  is  no  longer  in  service  but not yet receiving a
34        retirement annuity may  convert  his  or  her  creditable
 
                            -18-           LRB9105902EGfgam03
 1        service  for  employment  as  an  arson investigator into
 2        eligible creditable service by paying to the  System  the
 3        difference  between  the  employee contributions actually
 4        paid for that service and the  amounts  that  would  have
 5        been  contributed  if  the applicant were contributing at
 6        the rate applicable  to  persons  with  the  same  social
 7        security  status  earning  eligible creditable service on
 8        the date of application.
 9        (d)  A   security   employee   of   the   Department   of
10    Corrections, and a security employee  of  the  Department  of
11    Human  Services  who  is  not a mental health police officer,
12    shall not be eligible for the alternative retirement  annuity
13    provided by this Section unless he or she meets the following
14    minimum   age   and  service  requirements  at  the  time  of
15    retirement:
16             (i)  25 years of eligible creditable service and age
17        55; or
18             (ii)  beginning  January  1,  1987,  25   years   of
19        eligible  creditable  service  and age 54, or 24 years of
20        eligible creditable service and age 55; or
21             (iii)  beginning  January  1,  1988,  25  years   of
22        eligible  creditable  service  and age 53, or 23 years of
23        eligible creditable service and age 55; or
24             (iv)  beginning  January  1,  1989,  25   years   of
25        eligible  creditable  service  and age 52, or 22 years of
26        eligible creditable service and age 55; or
27             (v)  beginning January 1, 1990, 25 years of eligible
28        creditable service and age 51, or 21  years  of  eligible
29        creditable service and age 55; or
30             (vi)  beginning   January   1,  1991,  25  years  of
31        eligible creditable service and age 50, or  20  years  of
32        eligible creditable service and age 55.
33        Persons  who have service credit under Article 16 of this
34    Code for service as a security employee of the Department  of
 
                            -19-           LRB9105902EGfgam03
 1    Corrections  in  a  position  requiring  certification  as  a
 2    teacher  may  count  such  service  toward establishing their
 3    eligibility under the service requirements of  this  Section;
 4    but  such  service  may  be  used  only for establishing such
 5    eligibility,  and  not  for  the  purpose  of  increasing  or
 6    calculating any benefit.
 7        (e)  If a member enters military service while working in
 8    a position  in  which  eligible  creditable  service  may  be
 9    earned,  and  returns to State service in the same or another
10    such  position,  and  fulfills  in  all  other  respects  the
11    conditions prescribed in this Article for credit for military
12    service, such military service shall be credited as  eligible
13    creditable service for the purposes of the retirement annuity
14    prescribed in this Section.
15        (f)  For  purposes  of  calculating  retirement annuities
16    under  this  Section,  periods  of  service  rendered   after
17    December  31,  1968  and  before October 1, 1975 as a covered
18    employee in  the  position  of  special  agent,  conservation
19    police officer, mental health police officer, or investigator
20    for  the  Secretary  of  State,  shall be deemed to have been
21    service as a noncovered employee, provided that the  employee
22    pays to the System prior to retirement an amount equal to (1)
23    the  difference between the employee contributions that would
24    have been required for such service as a noncovered employee,
25    and the amount of employee contributions actually paid,  plus
26    (2)  if payment is made after July 31, 1987, regular interest
27    on the amount specified in item (1) from the date of  service
28    to the date of payment.
29        For  purposes  of  calculating retirement annuities under
30    this Section, periods of service rendered after December  31,
31    1968  and before January 1, 1982 as a covered employee in the
32    position of investigator for the Department of Revenue  shall
33    be  deemed  to  have  been  service as a noncovered employee,
34    provided that the  employee  pays  to  the  System  prior  to
 
                            -20-           LRB9105902EGfgam03
 1    retirement  an amount equal to (1) the difference between the
 2    employee contributions that would have been required for such
 3    service as a noncovered employee, and the amount of  employee
 4    contributions  actually  paid,  plus  (2)  if payment is made
 5    after  January  1,  1990,  regular  interest  on  the  amount
 6    specified in item (1) from the date of service to the date of
 7    payment.
 8        (g)  A State policeman may elect, not later than  January
 9    1,  1990,  to establish eligible creditable service for up to
10    10 years of his service as a policeman under  Article  3,  by
11    filing  a  written  election  with  the Board, accompanied by
12    payment of an amount to be determined by the Board, equal  to
13    (i)  the  difference  between  the  amount  of  employee  and
14    employer   contributions  transferred  to  the  System  under
15    Section  3-110.5,  and  the  amounts  that  would  have  been
16    contributed had such contributions been  made  at  the  rates
17    applicable  to State policemen, plus (ii) interest thereon at
18    the effective rate for each year, compounded  annually,  from
19    the date of service to the date of payment.
20        Subject  to  the  limitation  in  subsection (i), a State
21    policeman  may  elect,  not  later  than  July  1,  1993,  to
22    establish eligible creditable service for up to 10  years  of
23    his service as a member of the County Police Department under
24    Article  9,  by  filing  a  written  election with the Board,
25    accompanied by payment of an amount to be determined  by  the
26    Board,  equal  to  (i)  the  difference between the amount of
27    employee and employer contributions transferred to the System
28    under Section 9-121.10 and the amounts that would  have  been
29    contributed  had  those  contributions been made at the rates
30    applicable to State policemen, plus (ii) interest thereon  at
31    the  effective  rate for each year, compounded annually, from
32    the date of service to the date of payment.
33        (h)  Subject to the limitation in subsection (i), a State
34    policeman or investigator for  the  Secretary  of  State  may
 
                            -21-           LRB9105902EGfgam03
 1    elect  to  establish eligible creditable service for up to 12
 2    years of his service as  a  policeman  under  Article  5,  by
 3    filing a written election with the Board on or before January
 4    31,  1992,  and  paying  to the System by January 31, 1994 an
 5    amount to be determined  by  the  Board,  equal  to  (i)  the
 6    difference  between  the  amount  of  employee  and  employer
 7    contributions  transferred to the System under Section 5-236,
 8    and the amounts that would have  been  contributed  had  such
 9    contributions  been  made  at  the  rates applicable to State
10    policemen, plus (ii) interest thereon at the  effective  rate
11    for  each year, compounded annually, from the date of service
12    to the date of payment.
13        Subject to the limitation  in  subsection  (i),  a  State
14    policeman,  conservation  police officer, or investigator for
15    the Secretary  of  State  may  elect  to  establish  eligible
16    creditable  service  for  up  to  10  years  of  service as a
17    sheriff's law enforcement employee under Article 7, by filing
18    a written election with the Board on or  before  January  31,
19    1993,  and paying to the System by January 31, 1994 an amount
20    to be determined by the Board, equal to  (i)  the  difference
21    between  the  amount  of  employee and employer contributions
22    transferred to the System  under  Section  7-139.7,  and  the
23    amounts   that   would   have   been   contributed  had  such
24    contributions been made at  the  rates  applicable  to  State
25    policemen,  plus  (ii) interest thereon at the effective rate
26    for each year, compounded annually, from the date of  service
27    to the date of payment.
28        (i)  The  total  amount  of  eligible  creditable service
29    established by any person under subsections  (g),  (h),  (j),
30    (k), and (l) of this Section shall not exceed 12 years.
31        (j)  Subject  to  the  limitation  in  subsection (i), an
32    investigator  for  the  Office  of  the   State's   Attorneys
33    Appellate  Prosecutor or a controlled substance inspector may
34    elect to establish eligible creditable service for up  to  10
 
                            -22-           LRB9105902EGfgam03
 1    years  of  his  service  as  a policeman under Article 3 or a
 2    sheriff's law enforcement employee under Article 7, by filing
 3    a written election with the Board, accompanied by payment  of
 4    an  amount  to  be  determined by the Board, equal to (1) the
 5    difference  between  the  amount  of  employee  and  employer
 6    contributions transferred to the System under Section 3-110.6
 7    or 7-139.8, and the amounts that would have been  contributed
 8    had  such  contributions been made at the rates applicable to
 9    State policemen, plus (2) interest thereon at  the  effective
10    rate  for  each  year,  compounded annually, from the date of
11    service to the date of payment.
12        (k)  Subject to the limitation in subsection (i) of  this
13    Section,   an  alternative  formula  employee  may  elect  to
14    establish eligible creditable service for periods spent as  a
15    full-time  law  enforcement  officer or full-time corrections
16    officer employed by the federal government or by a  state  or
17    local  government  located  outside  of  Illinois,  for which
18    credit is not held in any other public employee pension  fund
19    or  retirement  system.  To obtain this credit, the applicant
20    must file a written application with the Board by  March  31,
21    1998,  accompanied  by  evidence of eligibility acceptable to
22    the Board and payment of an amount to be  determined  by  the
23    Board,  equal  to  (1)  employee contributions for the credit
24    being established, based upon the applicant's salary  on  the
25    first  day  as  an  alternative  formula  employee  after the
26    employment for which credit  is  being  established  and  the
27    rates  then applicable to alternative formula employees, plus
28    (2) an amount determined by the Board to  be  the  employer's
29    normal  cost  of  the  benefits  accrued for the credit being
30    established, plus (3) regular  interest  on  the  amounts  in
31    items  (1)  and  (2)  from  the  first  day as an alternative
32    formula employee after the employment  for  which  credit  is
33    being established to the date of payment.
34        (l)  Subject  to  the  limitation  in  subsection  (i), a
 
                            -23-           LRB9105902EGfgam03
 1    security employee of the Department of Corrections may elect,
 2    not later than July 1, 1998, to establish eligible creditable
 3    service for up to 10  years  of  his  or  her  service  as  a
 4    policeman  under Article 3, by filing a written election with
 5    the  Board,  accompanied  by  payment  of  an  amount  to  be
 6    determined by the Board, equal to (i) the difference  between
 7    the amount of employee and employer contributions transferred
 8    to  the  System  under  Section 3-110.5, and the amounts that
 9    would have been contributed had such contributions been  made
10    at   the  rates  applicable  to  security  employees  of  the
11    Department of Corrections, plus (ii) interest thereon at  the
12    effective  rate  for each year, compounded annually, from the
13    date of service to the date of payment.
14    (Source: P.A. 90-32,  eff.  6-27-97;  91-357,  eff.  7-29-99;
15    91-760, eff. 1-1-01.)

16        (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
17        Sec. 14-114.  Automatic increase in retirement annuity.
18        (a)  Any person receiving a retirement annuity under this
19    Article  who  retires  having attained age 60, or who retires
20    before age 60 having at least 35 years of creditable service,
21    or who retires on or after January 1, 2001 at an  age  which,
22    when  added  to  the number of years of his or her creditable
23    service, equals at  least  85,  shall,  on  January  1,  next
24    following  the first full year of retirement, have the amount
25    of the then fixed  and  payable  monthly  retirement  annuity
26    increased  3%.   Any  person  receiving  a retirement annuity
27    under this Article who retires before attainment  of  age  60
28    and  with  less  than  (i)  35 years of creditable service if
29    retirement is before January 1, 2001, or (ii) the  number  of
30    years of creditable service which, when added to the member's
31    age,  would equal 85, if retirement is on or after January 1,
32    2001,  shall  have  the  amount  of  the  fixed  and  payable
33    retirement annuity increased by 3% on the January 1 occurring
 
                            -24-           LRB9105902EGfgam03
 1    on or next following (1) attainment of age  60,  or  (2)  the
 2    first  anniversary  of  retirement,  whichever  occurs later.
 3    However, for persons who receive the  alternative  retirement
 4    annuity  under  Section 14-110, references in this subsection
 5    (a) to attainment of age 60  shall  be  deemed  to  refer  to
 6    attainment   of   age  55.   For  a  person  receiving  early
 7    retirement incentives under Section 14-108.3 whose retirement
 8    annuity began after January 1, 1992 pursuant to an  extension
 9    granted  under  subsection  (e)  of  that  Section, the first
10    anniversary of retirement shall be deemed to  be  January  1,
11    1993.
12        On  each  January  1  following  the  date of the initial
13    increase  under  this  subsection,  the  employee's   monthly
14    retirement annuity shall be increased by an additional 3%.
15        Beginning January 1, 1990, all automatic annual increases
16    payable   under   this  Section  shall  be  calculated  as  a
17    percentage of the total annuity payable at the  time  of  the
18    increase,  including  previous  increases  granted under this
19    Article.
20        (b)  The provisions of subsection  (a)  of  this  Section
21    shall be applicable to an employee only if the employee makes
22    the additional contributions required after December 31, 1969
23    for  the purpose of the automatic increases for not less than
24    the equivalent of one full year. If an  employee  becomes  an
25    annuitant  before his additional contributions equal one full
26    year's contributions based on  his  salary  at  the  date  of
27    retirement, the employee may pay the necessary balance of the
28    contributions   to  the  system,  without  interest,  and  be
29    eligible  for  the  increasing  annuity  authorized  by  this
30    Section.
31        (c)  The provisions of subsection  (a)  of  this  Section
32    shall not be applicable to any annuitant who is on retirement
33    on  December  31,  1969,  and  thereafter  returns  to  State
34    service,  unless the member has established at least one year
 
                            -25-           LRB9105902EGfgam03
 1    of  additional  creditable  service  following  reentry  into
 2    service.
 3        (d)  In addition to other increases which may be provided
 4    by this Section, on January 1, 1981  any  annuitant  who  was
 5    receiving  a  retirement annuity on or before January 1, 1971
 6    shall have his retirement annuity then being  paid  increased
 7    $1 per month for each year of creditable service.  On January
 8    1,  1982,  any  annuitant  who  began  receiving a retirement
 9    annuity  on  or  before  January  1,  1977,  shall  have  his
10    retirement annuity then being paid increased $1 per month for
11    each year of creditable service.
12        On January 1, 1987, any annuitant who began  receiving  a
13    retirement  annuity  on or before January 1, 1977, shall have
14    the monthly retirement annuity increased by an  amount  equal
15    to  8¢  per  year  of  creditable service times the number of
16    years that have elapsed since the annuity began.
17        (e)  Every person who receives the alternative retirement
18    annuity under Section 14-110 and who is eligible  to  receive
19    the  3%  increase  under  subsection  (a) on January 1, 1986,
20    shall also receive  on  that  date  a  one-time  increase  in
21    retirement  annuity  equal  to the difference between (1) his
22    actual  retirement  annuity  on  that  date,  including   any
23    increases  received  under subsection (a), and (2) the amount
24    of retirement annuity he would have received on that date  if
25    the  amendments  to  subsection (a) made by Public Act 84-162
26    had been in effect since the date of his retirement.
27    (Source: P.A. 86-273; 87-1265.)

28        (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
29        Sec. 14-133. Contributions on behalf of members.
30        (a)  Each participating employee shall make contributions
31    to the System,  based  on  the  employee's  compensation,  as
32    follows:
33             (1)  Covered  employees,  except as indicated below,
 
                            -26-           LRB9105902EGfgam03
 1        3.5% for retirement annuity, and  0.5%  for  a  widow  or
 2        survivors annuity;
 3             (2)  Noncovered   employees,   except  as  indicated
 4        below, 7% for retirement annuity and 1% for  a  widow  or
 5        survivors annuity;
 6             (3)  Noncovered  employees  serving in a position in
 7        which "eligible creditable service" as defined in Section
 8        14-110 may be earned, 8.5% for retirement annuity and  1%
 9        for  a  widow  or  survivors  annuity  plus the following
10        amount for retirement annuity: 8.5% through December  31,
11        2001;  9.5% in 2002; 10.5% in 2003; and 11.5% in 2004 and
12        thereafter;
13             (4)  Covered employees  serving  in  a  position  in
14        which "eligible creditable service" as defined in Section
15        14-110  may be earned, 5% for retirement annuity and 0.5%
16        for a widow  or  survivors  annuity  plus  the  following
17        amount  for  retirement  annuity: 5% through December 31,
18        2001; 6% in  2002;  7%  in  2003;  and  8%  in  2004  and
19        thereafter;
20             (5)  Each  security  employee  of  the Department of
21        Corrections or of the Department of Human Services who is
22        a covered employee, 5% for retirement  annuity  and  0.5%
23        for  a  widow  or  survivors  annuity  plus the following
24        amount for retirement annuity: 5%  through  December  31,
25        2001;  6%  in  2002;  7%  in  2003;  and  8%  in 2004 and
26        thereafter;
27             (6)  Each security employee  of  the  Department  of
28        Corrections or of the Department of Human Services who is
29        not  a  covered employee, 8.5% for retirement annuity and
30        1% for a widow or survivors annuity  plus  the  following
31        amount  for retirement annuity: 8.5% through December 31,
32        2001; 9.5% in 2002; 10.5% in 2003; and 11.5% in 2004  and
33        thereafter.
34        (b)  Contributions  shall  be  in the form of a deduction
 
                            -27-           LRB9105902EGfgam03
 1    from compensation and shall be made notwithstanding that  the
 2    compensation  paid  in  cash to the employee shall be reduced
 3    thereby below the minimum prescribed by  law  or  regulation.
 4    Each  member is deemed to consent and agree to the deductions
 5    from compensation provided for in  this  Article,  and  shall
 6    receipt in full for salary or compensation.
 7    (Source: P.A. 89-507, eff. 7-1-97; 90-448, eff. 8-16-97.)

 8        (40 ILCS 5/16-132) (from Ch. 108 1/2, par. 16-132)
 9        Sec.  16-132.   Retirement annuity eligibility.  A member
10    who has at least 20 years of creditable service  is  entitled
11    to  a  retirement annuity upon or after attainment of age 55.
12    A member who has at least  10  but  less  than  20  years  of
13    creditable  service  is entitled to a retirement annuity upon
14    or after attainment of age 60.  A member who has at  least  5
15    but less than 10 years of creditable service is entitled to a
16    retirement  annuity  upon  or  after attainment of age 62.  A
17    member who (i)  has  earned  during  the  period  immediately
18    preceding  the  last  day  of  service  at  least one year of
19    contributing  creditable  service  as  an   employee   of   a
20    department  as  defined in Section 14-103.04, (ii) has earned
21    at least 5 years of contributing  creditable  service  as  an
22    employee of a department as defined in Section 14-103.04, and
23    (iii)  retires  on  or after January 1, 2001 is entitled to a
24    retirement annuity upon or after attainment of an age  which,
25    when  added  to  the  number  of  years  of  his or her total
26    creditable service, equals at least 85.   Portions  of  years
27    shall be counted as decimal equivalents.
28        A  member who is eligible to receive a retirement annuity
29    of at least 74.6% of final average salary and will attain age
30    55 on or before December 31 during the year  which  commences
31    on  July  1 shall be deemed to attain age 55 on the preceding
32    June 1.
33        A member meeting  the  above  eligibility  conditions  is
 
                            -28-           LRB9105902EGfgam03
 1    entitled  to a retirement annuity upon written application to
 2    the board setting  forth  the  date  the  member  wishes  the
 3    retirement  annuity to commence.  However, the effective date
 4    of the retirement annuity shall be no earlier  than  the  day
 5    following  the  last day of creditable service, regardless of
 6    the date  of  official  termination  of  employment.   To  be
 7    eligible  for  a  retirement  annuity,  a member shall not be
 8    employed as a teacher in  the  schools  included  under  this
 9    System or under Article 17, unless the member is disabled (in
10    which  event,  eligibility  for salary must cease), or unless
11    the System is required by federal law to commence payment due
12    to the member's age; the changes to  this  sentence  made  by
13    this  amendatory  Act  of  1991 shall apply without regard to
14    whether the member terminated employment before or after  its
15    effective date.
16    (Source: P.A. 90-582, eff. 5-27-98.)

17        (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
18        Sec. 16-133.  Retirement annuity; amount.
19        (a)  The  amount  of  the retirement annuity shall be the
20    larger of the amounts determined under paragraphs (A) and (B)
21    below:
22             (A)  An  amount  consisting  of  the  sum   of   the
23        following:
24                  (1)  An  amount  that  can  be  provided  on an
25             actuarially  equivalent  basis   by   the   member's
26             accumulated contributions at the time of retirement;
27             and
28                  (2)  The  sum  of  (i)  the  amount that can be
29             provided on an actuarially equivalent basis  by  the
30             member's   accumulated   contributions  representing
31             service prior to July 1, 1947, and (ii)  the  amount
32             that  can  be  provided on an actuarially equivalent
33             basis by the  amount  obtained  by  multiplying  1.4
 
                            -29-           LRB9105902EGfgam03
 1             times   the   member's   accumulated   contributions
 2             covering service subsequent to June 30, 1947; and
 3                  (3)  If  there  is  prior  service, 2 times the
 4             amount  that  would  have  been   determined   under
 5             subparagraph  (2)  of paragraph (A) above on account
 6             of contributions which would have been  made  during
 7             the period of prior service creditable to the member
 8             had  the System been in operation and had the member
 9             made  contributions  at  the  contribution  rate  in
10             effect prior to July 1, 1947.
11             (B)  An amount consisting  of  the  greater  of  the
12        following:
13                  (1)  For  creditable service earned before July
14             1, 1998 that has not been  augmented  under  Section
15             16-129.1:  1.67% of final average salary for each of
16             the  first  10 years of creditable service, 1.90% of
17             final average salary for each year in excess  of  10
18             but  not exceeding 20, 2.10% of final average salary
19             for each year in excess of 20 but not exceeding  30,
20             and  2.30%  of final average salary for each year in
21             excess of 30; and
22                  For creditable service earned on or after  July
23             1,  1998  by  a  member who has at least 24 years of
24             creditable service on July 1, 1998 and who does  not
25             elect  to  augment  service  under Section 16-129.1:
26             2.2% of  final  average  salary  for  each  year  of
27             creditable  service  earned on or after July 1, 1998
28             but before the member reaches a total of 30 years of
29             creditable service and 2.3% of final average  salary
30             for  each  year  of  creditable service earned on or
31             after July 1, 1998 and after the  member  reaches  a
32             total of 30 years of creditable service; and
33                  For  all  other  creditable  service:   2.2% of
34             final average salary for  each  year  of  creditable
 
                            -30-           LRB9105902EGfgam03
 1             service; or
 2                  (2)  1.5% of final average salary for each year
 3             of creditable service plus the sum $7.50 for each of
 4             the first 20 years of creditable service.
 5        The  amount  of  the  retirement annuity determined under
 6        this paragraph (B) shall be reduced by 1/2 of 1% for each
 7        month that the member is less than age 60 at the time the
 8        retirement annuity begins.  However, this reduction shall
 9        not apply (i) if the member has  at  least  35  years  of
10        creditable  service,  or  (ii)  if  the member retires on
11        account of disability  under  Section  16-149.2  of  this
12        Article  with at least 20 years of creditable service, or
13        (iii) if the member (1)  has  earned  during  the  period
14        immediately  preceding  the  last day of service at least
15        one  year  of  contributing  creditable  service  as   an
16        employee of a department as defined in Section 14-103.04,
17        (2)   has   earned  at  least  5  years  of  contributing
18        creditable service as an  employee  of  a  department  as
19        defined  in  Section  14-103.04,  (3) retires on or after
20        January 1, 2001, and (4) retires having attained  an  age
21        which,  when  added  to the number of years of his or her
22        total creditable service, equals at least  85.   Portions
23        of years shall be counted as decimal equivalents.
24        (b)  For  purposes  of this Section, final average salary
25    shall be the average salary for  the  highest  4  consecutive
26    years  within  the  last  10  years  of creditable service as
27    determined under rules  of  the  board.   The  minimum  final
28    average salary shall be considered to be $2,400 per year.
29        In  the determination of final average salary for members
30    other than elected officials and their appointees  when  such
31    appointees  are  allowed  by statute, that part of a member's
32    salary for any year  beginning  after  June  30,  1979  which
33    exceeds  the  member's  annual full-time salary rate with the
34    same employer for the preceding year by more than  20%  shall
 
                            -31-           LRB9105902EGfgam03
 1    be  excluded.    The exclusion shall not apply in any year in
 2    which the member's creditable earnings are less than  50%  of
 3    the  preceding  year's  mean salary for downstate teachers as
 4    determined by the survey of school district salaries provided
 5    in Section 2-3.103 of the School Code.
 6        (c)  In determining the amount of the retirement  annuity
 7    under  paragraph (B) of this Section, a fractional year shall
 8    be granted proportional credit.
 9        (d)  The retirement annuity  determined  under  paragraph
10    (B)  of  this  Section shall be available only to members who
11    render teaching service after July 1, 1947 for  which  member
12    contributions  are  required,  and to annuitants who re-enter
13    under the provisions of Section 16-150.
14        (e)  The  maximum  retirement  annuity   provided   under
15    paragraph  (B)  of this Section shall be 75% of final average
16    salary.
17        (f)  A member retiring after the effective date  of  this
18    amendatory  Act  of 1998 shall receive a pension equal to 75%
19    of final average salary if the member is qualified to receive
20    a retirement annuity equal to at least 74.6% of final average
21    salary under this Article or as proportional annuities  under
22    Article 20 of this Code.
23    (Source: P.A.  90-582,  eff.  5-27-98;  91-17,  eff.  6-4-99;
24    91-887, eff. 7-6-00.)

25        (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
26        Sec. 16-133.1.  Automatic annual increase in annuity.
27        (a)  Each  member with creditable service and retiring on
28    or after August 26, 1969 is entitled to the automatic  annual
29    increases  in  annuity  provided  under  this  Section  while
30    receiving  a  retirement  annuity  or  disability  retirement
31    annuity from the system.
32        An  annuitant  shall  first  be  entitled  to  an initial
33    increase under this Section on the January 1  next  following
 
                            -32-           LRB9105902EGfgam03
 1    the first anniversary of retirement, or January 1 of the year
 2    next  following attainment of age 61, whichever is later.  At
 3    such  time,  the  system  shall  pay  an   initial   increase
 4    determined as follows:
 5             (1)  1.5%   of  the  originally  granted  retirement
 6        annuity or disability retirement  annuity  multiplied  by
 7        the  number  of  years elapsed, if any, from the later of
 8        (1) attainment of age 55, or (2) the date of  retirement,
 9        until January 1, 1972, plus
10             (2)  2% of the originally granted annuity multiplied
11        by  the number of years elapsed, if any, from the date of
12        retirement or  between  January  1,  1972,  whichever  is
13        later, until and January 1, 1978, plus
14             (3)  3% of the originally granted annuity multiplied
15        by   the  number  of  years  elapsed  from  the  date  of
16        retirement or  between  January  1,  1978,  whichever  is
17        later,  until  and  the  effective  date  of  the initial
18        increase.
19    However, the initial annual increase  calculated  under  this
20    Section  for the recipient of a disability retirement annuity
21    granted under Section 16-149.2 shall be reduced by an  amount
22    equal  to the total of all increases in that annuity received
23    under Section 16-149.5 (but not exceeding 100% of the  amount
24    of   the  initial  increase  otherwise  provided  under  this
25    Section).
26        Following  the   initial   increase,   automatic   annual
27    increases  in  annuity  shall  be  payable  on each January 1
28    thereafter during the lifetime of the  annuitant,  determined
29    as  a percentage of the originally granted retirement annuity
30    or disability retirement annuity for increases granted  prior
31    to  January  1,  1990,  and calculated as a percentage of the
32    total amount of annuity, including previous  increases  under
33    this  Section,  for  increases granted on or after January 1,
34    1990, as follows:  1.5% for periods prior to January 1, 1972,
 
                            -33-           LRB9105902EGfgam03
 1    2% for periods after December 31, 1971 and prior  to  January
 2    1, 1978, and 3% for periods after December 31, 1977.
 3        (b)  The  automatic  annual increases in annuity provided
 4    under this Section shall not be applicable  unless  a  member
 5    has  made  contributions  toward  such increases for a period
 6    equivalent to one full year of  creditable  service.    If  a
 7    member  contributes  for  service  performed after August 26,
 8    1969  but  the  member  becomes  an  annuitant  before   such
 9    contributions  amount  to one full year's contributions based
10    on the salary at the date of retirement, he or  she  may  pay
11    the  necessary balance of the contributions to the system and
12    be eligible for the automatic  annual  increases  in  annuity
13    provided under this Section.
14        (c)  Each member shall make contributions toward the cost
15    of  the  automatic  annual  increases  in annuity as provided
16    under Section 16-152.
17        (d)  An  annuitant  receiving  a  retirement  annuity  or
18    disability  retirement  annuity  on   July   1,   1969,   who
19    subsequently  re-enters  service as a teacher is eligible for
20    the automatic annual increases in annuity provided under this
21    Section if he or she renders at least one year of  creditable
22    service following the latest re-entry.
23        (e)  In  addition  to  the  automatic annual increases in
24    annuity provided under this Section, an annuitant  who  meets
25    the service requirements of this Section and whose retirement
26    annuity  or  disability retirement annuity began on or before
27    January 1,  1971  shall  receive,  on  January  1,  1981,  an
28    increase  in  the  annuity  then being paid of one dollar per
29    month for each year of creditable  service.   On  January  1,
30    1982,  an  annuitant  whose  retirement annuity or disability
31    retirement annuity began on or before January 1,  1977  shall
32    receive  an  increase  in  the annuity then being paid of one
33    dollar per month for each year of creditable service.
34        On  January  1,  1987,  any  annuitant  whose  retirement
 
                            -34-           LRB9105902EGfgam03
 1    annuity began on or before January 1, 1977, shall receive  an
 2    increase  in  the  monthly retirement annuity equal to 8¢ per
 3    year of creditable service times the  number  of  years  that
 4    have elapsed since the annuity began.
 5    (Source: P.A. 86-273; 86-1488.)

 6        Section  99.  Effective date.  This Act takes effect upon
 7    becoming law.".

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