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91_SB1927
LRB9113238EGfg
1 AN ACT in relation to public employee benefits.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Illinois Pension Code is amended by
5 changing Sections 14-107, 14-108, and 14-114 as follows:
6 (40 ILCS 5/14-107) (from Ch. 108 1/2, par. 14-107)
7 Sec. 14-107. Retirement annuity - service and age -
8 conditions. A member is entitled to a retirement annuity
9 after having at least 8 years of creditable service. A
10 member who has at least 30 years 35 years of creditable
11 service may claim his or her retirement annuity at any age.
12 A member having at least 8 years of creditable service but
13 less than 30 may 35 may claim his or her retirement annuity
14 upon or after attainment of age 60. A member upon or after
15 attainment of age 55 having at least 25 years 30 years of
16 creditable service may elect to receive the lower retirement
17 annuity provided in paragraph (c) of Section 14-108 of this
18 Code. The allowance shall begin with the first full calendar
19 month specified in the member's application therefor, the
20 first day of which shall not be before the date of withdrawal
21 as approved by the board. Regardless of the date of
22 withdrawal, the allowance need not begin within one year of
23 application therefor.
24 (Source: P.A. 82-342.)
25 (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
26 Sec. 14-108. Amount of retirement annuity. A member who
27 has contributed to the System for at least 12 months shall be
28 entitled to a prior service annuity for each year of
29 certified prior service credited to him, except that a member
30 shall receive 1/3 of the prior service annuity for each year
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1 of service for which contributions have been made and all of
2 such annuity shall be payable after the member has made
3 contributions for a period of 3 years. Proportionate amounts
4 shall be payable for service of less than a full year after
5 completion of at least 12 months.
6 The total period of service to be considered in
7 establishing the measure of prior service annuity shall
8 include service credited in the Teachers' Retirement System
9 of the State of Illinois and the State Universities
10 Retirement System for which contributions have been made by
11 the member to such systems; provided that at least 1 year of
12 the total period of 3 years prescribed for the allowance of a
13 full measure of prior service annuity shall consist of
14 membership service in this system for which credit has been
15 granted.
16 (a) In the case of a member who retires on or after
17 January 1, 1998 and is a noncovered employee, the retirement
18 annuity for membership service and prior service shall be
19 2.2% of final average compensation for each year of service.
20 Any service credit established as a covered employee shall be
21 computed as stated in paragraph (b).
22 (b) In the case of a member who retires on or after
23 January 1, 1998 and is a covered employee, the retirement
24 annuity for membership service and prior service shall be
25 computed as stated in paragraph (a) for all service credit
26 established as a noncovered employee; for service credit
27 established as a covered employee it shall be 1.67% of final
28 average compensation for each year of service.
29 (c) For a member with at least 25 but less than 30 but
30 less than 35 years of creditable service retiring after
31 attaining age 55 but before age 60, the retirement annuity
32 shall be reduced by 1/2 of 1% for each month that the
33 member's age is under age 60 at the time of retirement.
34 (d) A retirement annuity shall not exceed 75% of final
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1 average compensation, subject to such extension as may result
2 from the application of Section 14-114 or Section 14-115.
3 (e) The retirement annuity payable to any covered
4 employee who is a member of the System and in service on
5 January 1, 1969, or in service thereafter in 1969 as a result
6 of legislation enacted by the Illinois General Assembly
7 transferring the member to State employment from county
8 employment in a county Department of Public Aid in counties
9 of 3,000,000 or more population, under a plan of coordination
10 with the Old Age, Survivors and Disability provisions
11 thereof, if not fully insured for Old Age Insurance payments
12 under the Federal Old Age, Survivors and Disability Insurance
13 provisions at the date of acceptance of a retirement annuity,
14 shall not be less than the amount for which the member would
15 have been eligible if coordination were not applicable.
16 (f) The retirement annuity payable to any covered
17 employee who is a member of the System and in service on
18 January 1, 1969, or in service thereafter in 1969 as a result
19 of the legislation designated in the immediately preceding
20 paragraph, if fully insured for Old Age Insurance payments
21 under the Federal Social Security Act at the date of
22 acceptance of a retirement annuity, shall not be less than an
23 amount which when added to the Primary Insurance Benefit
24 payable to the member upon attainment of age 65 under such
25 Federal Act, will equal the annuity which would otherwise be
26 payable if the coordinated plan of coverage were not
27 applicable.
28 (g) In the case of a member who is a noncovered
29 employee, the retirement annuity for membership service as a
30 security employee of the Department of Corrections or
31 security employee of the Department of Human Services shall
32 be 1.9% of final average compensation for each of the first
33 10 years of service; 2.1% for each of the next 10 years of
34 service; 2.25% for each year of service in excess of 20 but
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1 not exceeding 30; and 2.5% for each year in excess of 30;
2 except that the annuity may be calculated under subsection
3 (a) rather than this subsection (g) if the resulting annuity
4 is greater.
5 (h) In the case of a member who is a covered employee,
6 the retirement annuity for membership service as a security
7 employee of the Department of Corrections or security
8 employee of the Department of Human Services shall be 1.67%
9 of final average compensation for each of the first 10 years
10 of service; 1.90% for each of the next 10 years of service;
11 2.10% for each year of service in excess of 20 but not
12 exceeding 30; and 2.30% for each year in excess of 30.
13 (i) For the purposes of this Section and Section 14-133
14 of this Act, the term "security employee of the Department of
15 Corrections" and the term "security employee of the
16 Department of Human Services" shall have the meanings
17 ascribed to them in subsection (c) of Section 14-110.
18 (j) The retirement annuity computed pursuant to
19 paragraphs (g) or (h) shall be applicable only to those
20 security employees of the Department of Corrections and
21 security employees of the Department of Human Services who
22 have at least 20 years of membership service and who are not
23 eligible for the alternative retirement annuity provided
24 under Section 14-110. However, persons transferring to this
25 System under Section 14-108.2 who have service credit under
26 Article 16 of this Code may count such service toward
27 establishing their eligibility under the 20-year service
28 requirement of this subsection; but such service may be used
29 only for establishing such eligibility, and not for the
30 purpose of increasing or calculating any benefit.
31 (k) (Blank).
32 (l) The changes to this Section made by this amendatory
33 Act of 1997 (changing certain retirement annuity formulas
34 from a stepped rate to a flat rate) apply to members who
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1 retire on or after January 1, 1998, without regard to whether
2 employment terminated before the effective date of this
3 amendatory Act of 1997. An annuity shall not be calculated
4 in steps by using the new flat rate for some steps and the
5 superseded stepped rate for other steps of the same type of
6 service.
7 (Source: P.A. 89-507, eff. 7-1-97; 90-65, eff. 7-7-97;
8 90-448, eff. 8-16-97; 90-655, eff. 7-30-98.)
9 (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
10 Sec. 14-114. Automatic increase in retirement annuity.
11 (a) Any person receiving a retirement annuity under this
12 Article who retires having attained age 60, or who retires
13 before age 60 having at least 30 years 35 years of creditable
14 service, shall on January 1, next following the first full
15 year of retirement, have the amount of the then fixed and
16 payable monthly retirement annuity increased 3%. Any person
17 receiving a retirement annuity under this Article who retires
18 before attainment of age 60 and with less than 30 years 35
19 years of creditable service shall have the amount of the
20 fixed and payable retirement annuity increased by 3% on the
21 January 1 occurring on or next following (1) attainment of
22 age 60, or (2) the first anniversary of retirement, whichever
23 occurs later. However, for persons who receive the
24 alternative retirement annuity under Section 14-110,
25 references in this subsection (a) to attainment of age 60
26 shall be deemed to refer to attainment of age 55. For a
27 person receiving early retirement incentives under Section
28 14-108.3 whose retirement annuity began after January 1, 1992
29 pursuant to an extension granted under subsection (e) of that
30 Section, the first anniversary of retirement shall be deemed
31 to be January 1, 1993.
32 On each January 1 following the date of the initial
33 increase under this subsection, the employee's monthly
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1 retirement annuity shall be increased by an additional 3%.
2 Beginning January 1, 1990, all automatic annual increases
3 payable under this Section shall be calculated as a
4 percentage of the total annuity payable at the time of the
5 increase, including previous increases granted under this
6 Article.
7 (b) The provisions of subsection (a) of this Section
8 shall be applicable to an employee only if the employee makes
9 the additional contributions required after December 31, 1969
10 for the purpose of the automatic increases for not less than
11 the equivalent of one full year. If an employee becomes an
12 annuitant before his additional contributions equal one full
13 year's contributions based on his salary at the date of
14 retirement, the employee may pay the necessary balance of the
15 contributions to the system, without interest, and be
16 eligible for the increasing annuity authorized by this
17 Section.
18 (c) The provisions of subsection (a) of this Section
19 shall not be applicable to any annuitant who is on retirement
20 on December 31, 1969, and thereafter returns to State
21 service, unless the member has established at least one year
22 of additional creditable service following reentry into
23 service.
24 (d) In addition to other increases which may be provided
25 by this Section, on January 1, 1981 any annuitant who was
26 receiving a retirement annuity on or before January 1, 1971
27 shall have his retirement annuity then being paid increased
28 $1 per month for each year of creditable service. On January
29 1, 1982, any annuitant who began receiving a retirement
30 annuity on or before January 1, 1977, shall have his
31 retirement annuity then being paid increased $1 per month for
32 each year of creditable service.
33 On January 1, 1987, any annuitant who began receiving a
34 retirement annuity on or before January 1, 1977, shall have
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1 the monthly retirement annuity increased by an amount equal
2 to 8¢ per year of creditable service times the number of
3 years that have elapsed since the annuity began.
4 (e) Every person who receives the alternative retirement
5 annuity under Section 14-110 and who is eligible to receive
6 the 3% increase under subsection (a) on January 1, 1986,
7 shall also receive on that date a one-time increase in
8 retirement annuity equal to the difference between (1) his
9 actual retirement annuity on that date, including any
10 increases received under subsection (a), and (2) the amount
11 of retirement annuity he would have received on that date if
12 the amendments to subsection (a) made by Public Act 84-162
13 had been in effect since the date of his retirement.
14 (Source: P.A. 86-273; 87-1265.)
15 Section 99. Effective date. This Act takes effect upon
16 becoming law.