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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 years30 years4 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 memberwith 30 but less than 35 years of18creditable serviceretiring 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)whois 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 and1% 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 and0.5% 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 and0.5% 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 and30 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, fromthe later of8(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 orbetweenJanuary 1, 1972, whichever is 13 later, untilandJanuary 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 orbetweenJanuary 1, 1978, whichever is 17 later, untilandthe 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.".