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92_HB0514
LRB9200752LDpr
1 AN ACT in relation to public employee pensions, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Pension Code is amended by
6 changing Sections 14-114, 14-119, 14-121, 15-136, 15-136.3,
7 15-145, 16-133.1, 16-143.1, 17-119, and 17-122 as follows:
8 (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
9 Sec. 14-114. Automatic increase in retirement annuity.
10 (a) Any person receiving a retirement annuity under this
11 Article who retires having attained age 60, or who retires
12 before age 60 having at least 35 years of creditable service,
13 shall on January 1, next following the first full year of
14 retirement, have the amount of the then fixed and payable
15 monthly retirement annuity increased 3%. Any person
16 receiving a retirement annuity under this Article who retires
17 before attainment of age 60 and with less than 35 years of
18 creditable service shall have the amount of the fixed and
19 payable retirement annuity increased by 3% on the January 1
20 occurring on or next following (1) attainment of age 60, or
21 (2) the first anniversary of retirement, whichever occurs
22 later. However, for persons who receive the alternative
23 retirement annuity under Section 14-110, references in this
24 subsection (a) to attainment of age 60 shall be deemed to
25 refer to attainment of age 55. For a person receiving early
26 retirement incentives under Section 14-108.3 whose retirement
27 annuity began after January 1, 1992 pursuant to an extension
28 granted under subsection (e) of that Section, the first
29 anniversary of retirement shall be deemed to be January 1,
30 1993.
31 On each January 1 following the date of the initial
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1 increase under this subsection, the employee's monthly
2 retirement annuity shall be increased by an additional 3%.
3 Beginning January 1, 1990, all automatic annual increases
4 payable under this Section shall be calculated as a
5 percentage of the total annuity payable at the time of the
6 increase, including previous increases granted under this
7 Article.
8 (b) The provisions of subsection (a) of this Section
9 shall be applicable to an employee only if the employee makes
10 the additional contributions required after December 31, 1969
11 for the purpose of the automatic increases for not less than
12 the equivalent of one full year. If an employee becomes an
13 annuitant before his additional contributions equal one full
14 year's contributions based on his salary at the date of
15 retirement, the employee may pay the necessary balance of the
16 contributions to the system, without interest, and be
17 eligible for the increasing annuity authorized by this
18 Section.
19 (c) The provisions of subsection (a) of this Section
20 shall not be applicable to any annuitant who is on retirement
21 on December 31, 1969, and thereafter returns to State
22 service, unless the member has established at least one year
23 of additional creditable service following reentry into
24 service.
25 (d) In addition to other increases which may be provided
26 by this Section, on January 1, 1981 any annuitant who was
27 receiving a retirement annuity on or before January 1, 1971
28 shall have his retirement annuity then being paid increased
29 $1 per month for each year of creditable service. On January
30 1, 1982, any annuitant who began receiving a retirement
31 annuity on or before January 1, 1977, shall have his
32 retirement annuity then being paid increased $1 per month for
33 each year of creditable service.
34 On January 1, 1987, any annuitant who began receiving a
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1 retirement annuity on or before January 1, 1977, shall have
2 the monthly retirement annuity increased by an amount equal
3 to 8¢ per year of creditable service times the number of
4 years that have elapsed since the annuity began.
5 (d-1) On January 1, 2002, every annuitant who began
6 receiving a retirement annuity on or before January 1, 1991
7 shall have the monthly retirement annuity increased by an
8 amount equal to 25¢ multiplied by the number of full years of
9 creditable service multiplied by the number of full years
10 that have elapsed since the annuity began. Every annuitant
11 who begins receiving a retirement annuity after January 1,
12 1991 and before January 1, 1998 shall have the monthly
13 retirement annuity increased on January 1, 2002 or on the
14 January 1 occurring on or next following the seventh
15 anniversary of retirement, whichever is later, by an amount
16 equal to $1.75 multiplied by the number of full years of
17 creditable service upon which the retirement annuity is
18 based. The increase under this subsection shall be included
19 in the calculation of increases granted simultaneously or
20 thereafter under subsection (a).
21 (e) Every person who receives the alternative retirement
22 annuity under Section 14-110 and who is eligible to receive
23 the 3% increase under subsection (a) on January 1, 1986,
24 shall also receive on that date a one-time increase in
25 retirement annuity equal to the difference between (1) his
26 actual retirement annuity on that date, including any
27 increases received under subsection (a), and (2) the amount
28 of retirement annuity he would have received on that date if
29 the amendments to subsection (a) made by Public Act 84-162
30 had been in effect since the date of his retirement.
31 (Source: P.A. 86-273; 87-1265.)
32 (40 ILCS 5/14-119) (from Ch. 108 1/2, par. 14-119)
33 Sec. 14-119. Amount of widow's annuity.
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1 (a) The widow's annuity shall be 50% of the amount of
2 retirement annuity payable to the member on the date of death
3 while on retirement if an annuitant, or on the date of his
4 death while in service if an employee, regardless of his age
5 on such date, or on the date of withdrawal if death occurred
6 after termination of service under the conditions prescribed
7 in the preceding Section.
8 (b) If an eligible widow, regardless of age, has in her
9 care any unmarried child or children of the member under age
10 18 (under age 22 if a full-time student), the widow's annuity
11 shall be increased in the amount of 5% of the retirement
12 annuity for each such child, but the combined payments for a
13 widow and children shall not exceed 66 2/3% of the member's
14 earned retirement annuity.
15 The amount of retirement annuity from which the widow's
16 annuity is derived shall be that earned by the member without
17 regard to whether he attained age 60 prior to his withdrawal
18 under the conditions stated or prior to his death.
19 (c) Adopted children shall be considered as children of
20 the member only if the proceedings for adoption were
21 commenced at least 1 year prior to the member's death.
22 Marriage of a child shall render the child ineligible for
23 further consideration in the increase in the amount of the
24 widow's annuity.
25 Attainment of age 18 (age 22 if a full-time student)
26 shall render a child ineligible for further consideration in
27 the increase of the widow's annuity, but the annuity to the
28 widow shall be continued thereafter, without regard to her
29 age at that time.
30 (d) A widow's annuity payable on account of any covered
31 employee who shall have been a covered employee for at least
32 18 months shall be reduced by 1/2 of the amount of survivors
33 benefits to which his beneficiaries are eligible under the
34 provisions of the Federal Social Security Act, except that
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1 (1) the amount of any widow's annuity payable under this
2 Article shall not be reduced by reason of any increase under
3 that Act which occurs after the offset required by this
4 subsection is first applied to that annuity, and (2) for
5 benefits granted on or after January 1, 1992, the offset
6 under this subsection (d) shall not exceed 50% of the amount
7 of widow's annuity otherwise payable.
8 (e) Upon the death of a recipient of a widow's annuity
9 the excess, if any, of the member's accumulated
10 contributions plus credited interest over all annuity
11 payments to the member and widow, exclusive of the $500 lump
12 sum payment, shall be paid to the named beneficiary of the
13 widow, or if none has been named, to the estate of the widow,
14 provided no reversionary annuity is payable.
15 (f) On January 1, 1981, any recipient of a widow's
16 annuity who was receiving a widow's annuity on or before
17 January 1, 1971, shall have her widow's annuity then being
18 paid increased by 1% for each full year which has elapsed
19 from the date the widow's annuity began. On January 1, 1982,
20 any recipient of a widow's annuity who began receiving a
21 widow's annuity after January 1, 1971, but before January 1,
22 1981, shall have her widow's annuity then being paid
23 increased by 1% for each full year which has elapsed from the
24 date the widow's annuity began. On January 1, 1987, any
25 recipient of a widow's annuity who began receiving the
26 widow's annuity on or before January 1, 1977, shall have the
27 monthly widow's annuity increased by $1 for each full year
28 which has elapsed since the date the annuity began.
29 (f-1) On January 1, 2002, every widow who began
30 receiving a widow's annuity on or before January 1, 1991
31 shall have the monthly widow's annuity increased by an amount
32 equal to 25¢ multiplied by the number of full years of the
33 deceased spouse's creditable service multiplied by the sum of
34 (i) the number of full years that have elapsed since the
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1 widow's annuity began and (ii) the number of full years, if
2 any, during which the deceased spouse received a retirement
3 annuity under this Article. Every widow who begins receiving
4 a widow's annuity after January 1, 1991 and before January 1,
5 2002 shall have the monthly widow's annuity increased on
6 January 1, 2002 or on the January 1 occurring on or next
7 following the seventh anniversary of the commencement of the
8 widow's annuity, whichever is later, by an amount equal to
9 25¢ multiplied by the number of full years of the deceased
10 spouse's creditable service multiplied by the sum of (i) the
11 number of full years that have elapsed since the widow's
12 annuity began and (ii) the number of full years, if any,
13 during which the deceased spouse received a retirement
14 annuity under this Article. The increase under this
15 subsection shall be included in the calculation of increases
16 granted simultaneously or thereafter under subsection (g).
17 (g) Beginning January 1, 1990, every widow's annuity
18 shall be increased (1) on each January 1 occurring on or
19 after the commencement of the annuity if the deceased member
20 died while receiving a retirement annuity, or (2) in other
21 cases, on each January 1 occurring on or after the first
22 anniversary of the commencement of the annuity, by an amount
23 equal to 3% of the current amount of the annuity, including
24 any previous increases under this Article. Such increases
25 shall apply without regard to whether the deceased member was
26 in service on or after the effective date of Public Act
27 86-1488, but shall not accrue for any period prior to January
28 1, 1990.
29 (Source: P.A. 90-448, eff. 8-16-97.)
30 (40 ILCS 5/14-121) (from Ch. 108 1/2, par. 14-121)
31 Sec. 14-121. Amount of survivors annuity. A survivors
32 annuity beneficiary shall be entitled upon death of the
33 member to a single sum payment of $1,000, payable pro rata
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1 among all persons entitled thereto, together with a survivors
2 annuity payable at the rates and under the conditions
3 specified in this Article.
4 (a) If the survivors annuity beneficiary is a spouse,
5 the survivors annuity shall be 30% of final average
6 compensation subject to a maximum payment of $400 per month.
7 (b) If an eligible child or children under the care of a
8 spouse also survives the member, such spouse as natural
9 guardian of the child or children shall receive, in addition
10 to the foregoing annuity, 20% of final average compensation
11 on account of each such child and 10% of final average
12 compensation divided pro rata among such children, subject to
13 a maximum payment on account of all survivor annuity
14 beneficiaries of $600 per month, or 80% of the member's final
15 average compensation, whichever is the lesser.
16 (c) If the survivors annuity beneficiary or
17 beneficiaries consists of an unmarried child or children, the
18 amount of survivors annuity shall be 20% of final average
19 compensation to each child, and 10% of final average
20 compensation divided pro rata among all such children
21 entitled to such annuity, subject to a maximum payment to all
22 children combined of $600 per month or 80% of the member's
23 final average compensation, whichever is the lesser.
24 (d) If the survivors annuity beneficiary is one or more
25 dependent parents, the annuity shall be 20% of final average
26 compensation to each parent and 10% of final average
27 compensation divided pro rata among the parents who qualify
28 for this annuity, subject to a maximum payment to both
29 dependent parents of $400 per month.
30 (e) The survivors annuity to the spouse, children or
31 dependent parents of a member whose death occurs after the
32 date of last withdrawal, or after retirement, or while in
33 service following reentry into service after retirement but
34 before completing 1 1/2 years of additional creditable
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1 service, shall not exceed the lesser of 80% of the member's
2 earned retirement annuity at the date of death or the maximum
3 previously established in this Section.
4 (f) In applying the limitation prescribed on the
5 combined payments to 2 or more survivors annuity
6 beneficiaries, the annuity on account of each beneficiary
7 shall be reduced pro rata until such time as the number of
8 beneficiaries makes the reduction no longer applicable.
9 (g) A survivors annuity payable on account of any
10 covered employee who shall have been a covered employee for
11 at least 18 months at date of death or last withdrawal,
12 whichever is the later, shall be reduced by 1/2 of the
13 survivors benefits to which his beneficiaries are eligible
14 under the federal Social Security Act, except that (1) the
15 survivors annuity payable under this Article shall not be
16 reduced by any increase under that Act which occurs after the
17 offset required by this subsection is first applied to that
18 annuity, and (2) for benefits granted on or after January 1,
19 1992, the offset under this subsection (g) shall not exceed
20 50% of the amount of survivors annuity otherwise payable.
21 (h) The minimum payment to a beneficiary hereunder shall
22 be $60 per month, which shall be reduced in accordance with
23 the limitation prescribed on the combined payments to all
24 beneficiaries of a member.
25 (i) Subject to the conditions set forth in Section
26 14-120, the minimum total survivors annuity benefit payable
27 to the survivors annuity beneficiaries of a deceased member
28 or annuitant whose death occurs on or after January 1, 1984,
29 shall be 50% of the amount of retirement annuity that was or
30 would have been payable to the deceased on the date of death,
31 regardless of the age of the deceased on such date. If the
32 minimum total benefit provided by this subsection exceeds the
33 maximum otherwise imposed by this Section, the minimum total
34 benefit shall nevertheless be payable. Any increase in the
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1 total survivors annuity benefit resulting from the operation
2 of this subsection shall be divided among the survivors
3 annuity beneficiaries of the deceased in proportion to their
4 shares of the total survivors annuity benefit otherwise
5 payable under this Section.
6 (j) Any survivors annuity beneficiary whose annuity
7 terminates due to any condition specified in this Article
8 other than death shall be entitled to a refund of the excess,
9 if any, of the accumulated contributions of the member plus
10 credited interest over all payments to the member and
11 beneficiary or beneficiaries, exclusive of the single sum
12 payment of $1,000, provided no future survivors or
13 reversionary annuity benefits are payable.
14 (k) Upon the death of the last eligible recipient of a
15 survivors annuity the excess, if any, of the member's
16 accumulated contributions plus credited interest over all
17 annuity payments to the member and survivors exclusive of the
18 single sum payment of $1000, shall be paid to the named
19 beneficiary of the last eligible survivor, or if none has
20 been named, to the estate of the last eligible survivor,
21 provided no reversionary annuity is payable.
22 (l) On January 1, 1981, any survivor who was receiving a
23 survivors annuity on or before January 1, 1971, shall have
24 his survivors annuity then being paid increased by 1% for
25 each full year which has elapsed from the date the annuity
26 began. On January 1, 1982, any survivor who began receiving
27 a survivor's annuity after January 1, 1971, but before
28 January 1, 1981, shall have his survivor's annuity then being
29 paid increased by 1% for each full year that has elapsed from
30 the date the annuity began. On January 1, 1987, any survivor
31 who began receiving a survivor's annuity on or before January
32 1, 1977, shall have the monthly survivor's annuity increased
33 by $1 for each full year which has elapsed since the date the
34 survivor's annuity began.
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1 (m) Beginning January 1, 1990, every survivor's annuity
2 shall be increased (1) on each January 1 occurring on or
3 after the commencement of the annuity if the deceased member
4 died while receiving a retirement annuity, or (2) in other
5 cases, on each January 1 occurring on or after the first
6 anniversary of the commencement of the annuity, by an amount
7 equal to 3% of the current amount of the annuity, including
8 any previous increases under this Article. Such increases
9 shall apply without regard to whether the deceased member was
10 in service on or after the effective date of Public Act
11 86-1488, but shall not accrue for any period prior to January
12 1, 1990.
13 (n) On January 1, 2002, every survivor who began
14 receiving a survivor's annuity on or before January 1, 1991
15 shall have the monthly survivor's annuity increased by an
16 amount equal to 25¢ multiplied by the number of full years of
17 the deceased's creditable service multiplied by the sum of
18 (i) the number of full years that have elapsed since the
19 survivor's annuity began and (ii) the number of full years,
20 if any, during which the deceased received a retirement
21 annuity under this Article. Every survivor who begins
22 receiving a survivor's annuity after January 1, 1991 and
23 before January 1, 2002 shall have the monthly survivor's
24 annuity increased on January 1, 2002 or on the January 1
25 occurring on or next following the seventh anniversary of the
26 commencement of the survivor's annuity, whichever is later,
27 by an amount equal to 25¢ multiplied by the number of full
28 years of the deceased's creditable service multiplied by the
29 sum of (i) the number of full years that have elapsed since
30 the survivor's annuity began and (ii) the number of full
31 years, if any, during which the deceased received a
32 retirement annuity under this Article. The increase under
33 this subsection shall be included in the calculation of
34 increases granted simultaneously or thereafter under
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1 subsection (m).
2 (Source: P.A. 86-273; 86-1488; 87-794.)
3 (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
4 Sec. 15-136. Retirement annuities - Amount. The
5 provisions of this Section 15-136 apply only to those
6 participants who are participating in the traditional benefit
7 package or the portable benefit package and do not apply to
8 participants who are participating in the self-managed plan.
9 (a) The amount of a participant's retirement annuity,
10 expressed in the form of a single-life annuity, shall be
11 determined by whichever of the following rules is applicable
12 and provides the largest annuity:
13 Rule 1: The retirement annuity shall be 1.67% of final
14 rate of earnings for each of the first 10 years of service,
15 1.90% for each of the next 10 years of service, 2.10% for
16 each year of service in excess of 20 but not exceeding 30,
17 and 2.30% for each year in excess of 30; or for persons who
18 retire on or after January 1, 1998, 2.2% of the final rate of
19 earnings for each year of service.
20 Rule 2: The retirement annuity shall be the sum of the
21 following, determined from amounts credited to the
22 participant in accordance with the actuarial tables and the
23 prescribed rate of interest in effect at the time the
24 retirement annuity begins:
25 (i) the normal annuity which can be provided on an
26 actuarially equivalent basis, by the accumulated normal
27 contributions as of the date the annuity begins; and
28 (ii) an annuity from employer contributions of an
29 amount equal to that which can be provided on an
30 actuarially equivalent basis from the accumulated normal
31 contributions made by the participant under Section
32 15-113.6 and Section 15-113.7 plus 1.4 times all other
33 accumulated normal contributions made by the participant.
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1 With respect to a police officer or firefighter who
2 retires on or after August 14, 1998, the accumulated normal
3 contributions taken into account under clauses (i) and (ii)
4 of this Rule 2 shall include the additional normal
5 contributions made by the police officer or firefighter under
6 Section 15-157(a).
7 The amount of a retirement annuity calculated under this
8 Rule 2 shall be computed solely on the basis of the
9 participant's accumulated normal contributions, as specified
10 in this Rule and defined in Section 15-116. Neither an
11 employee or employer contribution for early retirement under
12 Section 15-136.2 nor any other employer contribution shall be
13 used in the calculation of the amount of a retirement annuity
14 under this Rule 2.
15 This amendatory Act of the 91st General Assembly is a
16 clarification of existing law and applies to every
17 participant and annuitant without regard to whether status as
18 an employee terminates before the effective date of this
19 amendatory Act.
20 Rule 3: The retirement annuity of a participant who is
21 employed at least one-half time during the period on which
22 his or her final rate of earnings is based, shall be equal to
23 the participant's years of service not to exceed 30,
24 multiplied by (1) $96 if the participant's final rate of
25 earnings is less than $3,500, (2) $108 if the final rate of
26 earnings is at least $3,500 but less than $4,500, (3) $120 if
27 the final rate of earnings is at least $4,500 but less than
28 $5,500, (4) $132 if the final rate of earnings is at least
29 $5,500 but less than $6,500, (5) $144 if the final rate of
30 earnings is at least $6,500 but less than $7,500, (6) $156 if
31 the final rate of earnings is at least $7,500 but less than
32 $8,500, (7) $168 if the final rate of earnings is at least
33 $8,500 but less than $9,500, and (8) $180 if the final rate
34 of earnings is $9,500 or more, except that the annuity for
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1 those persons having made an election under Section
2 15-154(a-1) shall be calculated and payable under the
3 portable retirement benefit program pursuant to the
4 provisions of Section 15-136.4.
5 Rule 4: A participant who is at least age 50 and has 25
6 or more years of service as a police officer or firefighter,
7 and a participant who is age 55 or over and has at least 20
8 but less than 25 years of service as a police officer or
9 firefighter, shall be entitled to a retirement annuity of
10 2 1/4% of the final rate of earnings for each of the first 10
11 years of service as a police officer or firefighter, 2 1/2%
12 for each of the next 10 years of service as a police officer
13 or firefighter, and 2 3/4% for each year of service as a
14 police officer or firefighter in excess of 20. The
15 retirement annuity for all other service shall be computed
16 under Rule 1.
17 For purposes of this Rule 4, a participant's service as a
18 firefighter shall also include the following:
19 (i) service that is performed while the person is
20 an employee under subsection (h) of Section 15-107; and
21 (ii) in the case of an individual who was a
22 participating employee employed in the fire department of
23 the University of Illinois's Champaign-Urbana campus
24 immediately prior to the elimination of that fire
25 department and who immediately after the elimination of
26 that fire department transferred to another job with the
27 University of Illinois, service performed as an employee
28 of the University of Illinois in a position other than
29 police officer or firefighter, from the date of that
30 transfer until the employee's next termination of service
31 with the University of Illinois.
32 Rule 5: The retirement annuity of a participant who
33 elected early retirement under the provisions of Section
34 15-136.2 and who, on or before February 16, 1995, brought
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1 administrative proceedings pursuant to the administrative
2 rules adopted by the System to challenge the calculation of
3 his or her retirement annuity shall be the sum of the
4 following, determined from amounts credited to the
5 participant in accordance with the actuarial tables and the
6 prescribed rate of interest in effect at the time the
7 retirement annuity begins:
8 (i) the normal annuity which can be provided on an
9 actuarially equivalent basis, by the accumulated normal
10 contributions as of the date the annuity begins; and
11 (ii) an annuity from employer contributions of an
12 amount equal to that which can be provided on an
13 actuarially equivalent basis from the accumulated normal
14 contributions made by the participant under Section
15 15-113.6 and Section 15-113.7 plus 1.4 times all other
16 accumulated normal contributions made by the participant;
17 and
18 (iii) an annuity which can be provided on an
19 actuarially equivalent basis from the employee
20 contribution for early retirement under Section 15-136.2,
21 and an annuity from employer contributions of an amount
22 equal to that which can be provided on an actuarially
23 equivalent basis from the employee contribution for early
24 retirement under Section 15-136.2.
25 In no event shall a retirement annuity under this Rule 5
26 be lower than the amount obtained by adding (1) the monthly
27 amount obtained by dividing the combined employee and
28 employer contributions made under Section 15-136.2 by the
29 System's annuity factor for the age of the participant at the
30 beginning of the annuity payment period and (2) the amount
31 equal to the participant's annuity if calculated under Rule
32 1, reduced under Section 15-136(b) as if no contributions had
33 been made under Section 15-136.2.
34 With respect to a participant who is qualified for a
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1 retirement annuity under this Rule 5 whose retirement annuity
2 began before the effective date of this amendatory Act of the
3 91st General Assembly, and for whom an employee contribution
4 was made under Section 15-136.2, the System shall recalculate
5 the retirement annuity under this Rule 5 and shall pay any
6 additional amounts due in the manner provided in Section
7 15-186.1 for benefits mistakenly set too low.
8 The amount of a retirement annuity calculated under this
9 Rule 5 shall be computed solely on the basis of those
10 contributions specifically set forth in this Rule 5. Except
11 as provided in clause (iii) of this Rule 5, neither an
12 employee nor employer contribution for early retirement under
13 Section 15-136.2, nor any other employer contribution, shall
14 be used in the calculation of the amount of a retirement
15 annuity under this Rule 5.
16 The General Assembly has adopted the changes set forth in
17 Section 25 of this amendatory Act of the 91st General
18 Assembly in recognition that the decision of the Appellate
19 Court for the Fourth District in Mattis v. State Universities
20 Retirement System et al. might be deemed to give some right
21 to the plaintiff in that case. The changes made by Section
22 25 of this amendatory Act of the 91st General Assembly are a
23 legislative implementation of the decision of the Appellate
24 Court for the Fourth District in Mattis v. State Universities
25 Retirement System et al. with respect to that plaintiff.
26 The changes made by Section 25 of this amendatory Act of
27 the 91st General Assembly apply without regard to whether the
28 person is in service as an employee on or after its effective
29 date.
30 (b) The retirement annuity provided under Rules 1 and 3
31 above shall be reduced by 1/2 of 1% for each month the
32 participant is under age 60 at the time of retirement.
33 However, this reduction shall not apply in the following
34 cases:
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1 (1) For a disabled participant whose disability
2 benefits have been discontinued because he or she has
3 exhausted eligibility for disability benefits under
4 clause (6) of Section 15-152;
5 (2) For a participant who has at least the number
6 of years of service required to retire at any age under
7 subsection (a) of Section 15-135; or
8 (3) For that portion of a retirement annuity which
9 has been provided on account of service of the
10 participant during periods when he or she performed the
11 duties of a police officer or firefighter, if these
12 duties were performed for at least 5 years immediately
13 preceding the date the retirement annuity is to begin.
14 (c) The maximum retirement annuity provided under Rules
15 1, 2, 4, and 5 shall be the lesser of (1) the annual limit of
16 benefits as specified in Section 415 of the Internal Revenue
17 Code of 1986, as such Section may be amended from time to
18 time and as such benefit limits shall be adjusted by the
19 Commissioner of Internal Revenue, and (2) 80% of final rate
20 of earnings.
21 (d) An annuitant whose status as an employee terminates
22 after August 14, 1969 shall receive automatic increases in
23 his or her retirement annuity as follows:
24 Effective January 1 immediately following the date the
25 retirement annuity begins, the annuitant shall receive an
26 increase in his or her monthly retirement annuity of 0.125%
27 of the monthly retirement annuity provided under Rule 1, Rule
28 2, Rule 3, Rule 4, or Rule 5, contained in this Section,
29 multiplied by the number of full months which elapsed from
30 the date the retirement annuity payments began to January 1,
31 1972, plus 0.1667% of such annuity, multiplied by the number
32 of full months which elapsed from January 1, 1972, or the
33 date the retirement annuity payments began, whichever is
34 later, to January 1, 1978, plus 0.25% of such annuity
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1 multiplied by the number of full months which elapsed from
2 January 1, 1978, or the date the retirement annuity payments
3 began, whichever is later, to the effective date of the
4 increase.
5 The annuitant shall receive an increase in his or her
6 monthly retirement annuity on each January 1 thereafter
7 during the annuitant's life of 3% of the monthly annuity
8 provided under Rule 1, Rule 2, Rule 3, Rule 4, or Rule 5
9 contained in this Section. The change made under this
10 subsection by P.A. 81-970 is effective January 1, 1980 and
11 applies to each annuitant whose status as an employee
12 terminates before or after that date.
13 Beginning January 1, 1990, all automatic annual increases
14 payable under this Section shall be calculated as a
15 percentage of the total annuity payable at the time of the
16 increase, including all increases previously granted under
17 this Article.
18 The change made in this subsection by P.A. 85-1008 is
19 effective January 26, 1988, and is applicable without regard
20 to whether status as an employee terminated before that date.
21 (e) If, on January 1, 1987, or the date the retirement
22 annuity payment period begins, whichever is later, the sum of
23 the retirement annuity provided under Rule 1 or Rule 2 of
24 this Section and the automatic annual increases provided
25 under the preceding subsection or Section 15-136.1, amounts
26 to less than the retirement annuity which would be provided
27 by Rule 3, the retirement annuity shall be increased as of
28 January 1, 1987, or the date the retirement annuity payment
29 period begins, whichever is later, to the amount which would
30 be provided by Rule 3 of this Section. Such increased amount
31 shall be considered as the retirement annuity in determining
32 benefits provided under other Sections of this Article. This
33 paragraph applies without regard to whether status as an
34 employee terminated before the effective date of this
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1 amendatory Act of 1987, provided that the annuitant was
2 employed at least one-half time during the period on which
3 the final rate of earnings was based.
4 (f) A participant is entitled to such additional annuity
5 as may be provided on an actuarially equivalent basis, by any
6 accumulated additional contributions to his or her credit.
7 However, the additional contributions made by the participant
8 toward the automatic increases in annuity provided under this
9 Section shall not be taken into account in determining the
10 amount of such additional annuity.
11 (g) If, (1) by law, a function of a governmental unit,
12 as defined by Section 20-107 of this Code, is transferred in
13 whole or in part to an employer, and (2) a participant
14 transfers employment from such governmental unit to such
15 employer within 6 months after the transfer of the function,
16 and (3) the sum of (A) the annuity payable to the participant
17 under Rule 1, 2, or 3 of this Section (B) all proportional
18 annuities payable to the participant by all other retirement
19 systems covered by Article 20, and (C) the initial primary
20 insurance amount to which the participant is entitled under
21 the Social Security Act, is less than the retirement annuity
22 which would have been payable if all of the participant's
23 pension credits validated under Section 20-109 had been
24 validated under this system, a supplemental annuity equal to
25 the difference in such amounts shall be payable to the
26 participant.
27 (h) On January 1, 1981, an annuitant who was receiving a
28 retirement annuity on or before January 1, 1971 shall have
29 his or her retirement annuity then being paid increased $1
30 per month for each year of creditable service. On January 1,
31 1982, an annuitant whose retirement annuity began on or
32 before January 1, 1977, shall have his or her retirement
33 annuity then being paid increased $1 per month for each year
34 of creditable service.
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1 (i) On January 1, 1987, any annuitant whose retirement
2 annuity began on or before January 1, 1977, shall have the
3 monthly retirement annuity increased by an amount equal to 8¢
4 per year of creditable service times the number of years that
5 have elapsed since the annuity began.
6 (j) On January 1, 2002, every annuitant who began
7 receiving a retirement annuity on or before January 1, 1991
8 shall have the monthly retirement annuity increased by an
9 amount equal to 25¢ multiplied by the number of full years of
10 creditable service multiplied by the number of full years
11 that have elapsed since the annuity began. Every annuitant
12 who begins receiving a retirement annuity after January 1,
13 1991 and before January 1, 1998 shall have the monthly
14 retirement annuity increased on January 1, 2002 or on the
15 January 1 occurring on or next following the seventh
16 anniversary of retirement, whichever is later, by an amount
17 equal to $1.75 multiplied by the number of full years of
18 creditable service upon which the retirement annuity is
19 based. The increase under this subsection shall be included
20 in the calculation of increases granted simultaneously or
21 thereafter under subsection (d).
22 (Source: P.A. 90-14, eff. 7-1-97; 90-65, eff. 7-7-97; 90-448,
23 eff. 8-16-97; 90-576, eff. 3-31-98; 90-655, eff. 7-30-98;
24 90-766, eff. 8-14-98; 91-887 (Sections 20 and 25), eff.
25 7-6-00; revised 8-31-00.)
26 (40 ILCS 5/15-136.3)
27 Sec. 15-136.3. Minimum retirement annuity.
28 (a) Beginning January 1, 1997, any person who is
29 receiving a monthly retirement annuity under this Article
30 which, after inclusion of (1) all one-time and automatic
31 annual increases to which the person is entitled, (2) any
32 supplemental annuity payable under Section 15-136.1, and (3)
33 any amount deducted under Section 15-138 or 15-140 to provide
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1 a reversionary annuity, is less than the minimum monthly
2 retirement benefit amount specified in subsection (b) of this
3 Section, shall be entitled to a monthly supplemental payment
4 equal to the difference.
5 (b) For purposes of the calculation in subsection (a),
6 the minimum monthly retirement benefit amount is the sum of
7 $25 for each year of service credit, up to a maximum of 30
8 years of service, plus the amount of the increase received by
9 the annuitant under subsection (j) of Section 15-136, if any.
10 (c) This Section applies to all persons receiving a
11 retirement annuity under this Article, without regard to
12 whether or not employment terminated prior to the effective
13 date of this Section.
14 (Source: P.A. 89-616, eff. 8-9-96.)
15 (40 ILCS 5/15-145) (from Ch. 108 1/2, par. 15-145)
16 Sec. 15-145. Survivors insurance benefits; conditions
17 and amounts.
18 (a) The survivors insurance benefits provided under this
19 Section shall be payable to the eligible survivors of a
20 participant covered under the traditional benefit package
21 upon the death of (1) a participating employee with at least
22 1 1/2 years of service, (2) a participant who terminated
23 employment with at least 10 years of service, and (3) an
24 annuitant in receipt of a retirement annuity or disability
25 retirement annuity under this Article.
26 Service under the State Employees' Retirement System of
27 Illinois, the Teachers' Retirement System of the State of
28 Illinois and the Public School Teachers' Pension and
29 Retirement Fund of Chicago shall be considered in determining
30 eligibility for survivors benefits under this Section.
31 If by law, a function of a governmental unit, as defined
32 by Section 20-107, is transferred in whole or in part to an
33 employer, and an employee transfers employment from this
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1 governmental unit to such employer within 6 months after the
2 transfer of this function, the service credits in the
3 governmental unit's retirement system which have been
4 validated under Section 20-109 shall be considered in
5 determining eligibility for survivors benefits under this
6 Section.
7 (b) A surviving spouse of a deceased participant, or of
8 a deceased annuitant who did not take a refund or additional
9 annuity consisting of accumulated survivors insurance
10 contributions, shall receive a survivors annuity of 30% of
11 the final rate of earnings. Payments shall begin on the day
12 following the participant's or annuitant's death or the date
13 the surviving spouse attains age 50, whichever is later, and
14 continue until the death of the surviving spouse. The
15 annuity shall be payable to the surviving spouse prior to
16 attainment of age 50 if the surviving spouse has in his or
17 her care a deceased participant's or annuitant's dependent
18 unmarried child under age 18 (under age 22 if a full-time
19 student) who is eligible for a survivors annuity. Remarriage
20 of a surviving spouse prior to attainment of age 55 that
21 occurs before the effective date of this amendatory Act of
22 the 91st General Assembly shall disqualify him or her for the
23 receipt of a survivors annuity.
24 (c) Each dependent unmarried child under age 18 (under
25 age 22 if a full-time student) of a deceased participant, or
26 of a deceased annuitant who did not take a refund or
27 additional annuity consisting of accumulated survivors
28 insurance contributions, shall receive a survivors annuity
29 equal to the sum of (1) 20% of the final rate of earnings,
30 and (2) 10% of the final rate of earnings divided by the
31 number of children entitled to this benefit. Payments shall
32 begin on the day following the participant's or annuitant's
33 death and continue until the child marries, dies, or attains
34 age 18 (age 22 if a full-time student). If the child is in
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1 the care of a surviving spouse who is eligible for survivors
2 insurance benefits, the child's benefit shall be paid to the
3 surviving spouse.
4 Each unmarried child over age 18 of a deceased
5 participant or of a deceased annuitant who had a survivor's
6 insurance beneficiary at the time of his or her retirement,
7 and who was dependent upon the participant or annuitant by
8 reason of a physical or mental disability which began prior
9 to the date the child attained age 18 (age 22 if a full-time
10 student), shall receive a survivor's annuity equal to the sum
11 of (1) 20% of the final rate of earnings, and (2) 10% of the
12 final rate of earnings divided by the number of children
13 entitled to survivors benefits. Payments shall begin on the
14 day following the participant's or annuitant's death and
15 continue until the child marries, dies, or is no longer
16 disabled. If the child is in the care of a surviving spouse
17 who is eligible for survivors insurance benefits, the child's
18 benefit may be paid to the surviving spouse. For the
19 purposes of this Section, disability means inability to
20 engage in any substantial gainful activity by reason of any
21 medically determinable physical or mental impairment that can
22 be expected to result in death or that has lasted or can be
23 expected to last for a continuous period of at least one
24 year.
25 (d) Each dependent parent of a deceased participant, or
26 of a deceased annuitant who did not take a refund or
27 additional annuity consisting of accumulated survivors
28 insurance contributions, shall receive a survivors annuity
29 equal to the sum of (1) 20% of final rate of earnings, and
30 (2) 10% of final rate of earnings divided by the number of
31 parents who qualify for the benefit. Payments shall begin
32 when the parent reaches age 55 or the day following the
33 participant's or annuitant's death, whichever is later, and
34 continue until the parent dies. Remarriage of a parent prior
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1 to attainment of age 55 shall disqualify the parent for the
2 receipt of a survivors annuity.
3 (e) In addition to the survivors annuity provided above,
4 each survivors insurance beneficiary shall, upon death of the
5 participant or annuitant, receive a lump sum payment of
6 $1,000 divided by the number of such beneficiaries.
7 (f) The changes made in this Section by Public Act
8 81-712 pertaining to survivors annuities in cases of
9 remarriage prior to age 55 shall apply to each survivors
10 insurance beneficiary who remarries after June 30, 1979,
11 regardless of the date that the participant or annuitant
12 terminated his employment or died.
13 The change made to this Section by this amendatory Act of
14 the 91st General Assembly, pertaining to remarriage prior to
15 age 55, applies without regard to whether the deceased
16 participant or annuitant was in service on or after the
17 effective date of this amendatory Act of the 91st General
18 Assembly.
19 (g) On January 1, 1981, any person who was receiving a
20 survivors annuity on or before January 1, 1971 shall have the
21 survivors annuity then being paid increased by 1% for each
22 full year which has elapsed from the date the annuity began.
23 On January 1, 1982, any survivor whose annuity began after
24 January 1, 1971, but before January 1, 1981, shall have the
25 survivor's annuity then being paid increased by 1% for each
26 year which has elapsed from the date the survivor's annuity
27 began. On January 1, 1987, any survivor who began receiving a
28 survivor's annuity on or before January 1, 1977, shall have
29 the monthly survivor's annuity increased by $1 for each full
30 year which has elapsed since the date the survivor's annuity
31 began.
32 (g-1) On January 1, 2002, every survivor who began
33 receiving a survivor's annuity on or before January 1, 1991
34 shall have the monthly survivor's annuity increased by an
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1 amount equal to 25¢ multiplied by the number of full years of
2 the deceased's creditable service multiplied by the sum of
3 (i) the number of full years that have elapsed since the
4 survivor's annuity began and (ii) the number of full years,
5 if any, during which the deceased received a retirement
6 annuity under this Article. Every survivor who begins
7 receiving a survivor's annuity after January 1, 1991 and
8 before January 1, 2002 shall have the monthly survivor's
9 annuity increased on January 1, 2002 or on the January 1
10 occurring on or next following the seventh anniversary of the
11 commencement of the survivor's annuity, whichever is later,
12 by an amount equal to 25¢ multiplied by the number of full
13 years of the deceased's creditable service multiplied by the
14 sum of (i) the number of full years that have elapsed since
15 the survivor's annuity began and (ii) the number of full
16 years, if any, during which the deceased received a
17 retirement annuity under this Article. The increase under
18 this subsection shall be included in the calculation of
19 increases granted simultaneously or thereafter under
20 subsection (j).
21 (h) If the sum of the lump sum and total monthly
22 survivor benefits payable under this Section upon the death
23 of a participant amounts to less than the sum of the death
24 benefits payable under items (2) and (3) of Section 15-141,
25 the difference shall be paid in a lump sum to the beneficiary
26 of the participant who is living on the date that this
27 additional amount becomes payable.
28 (i) If the sum of the lump sum and total monthly
29 survivor benefits payable under this Section upon the death
30 of an annuitant receiving a retirement annuity or disability
31 retirement annuity amounts to less than the death benefit
32 payable under Section 15-142, the difference shall be paid to
33 the beneficiary of the annuitant who is living on the date
34 that this additional amount becomes payable.
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1 (j) Effective on the later of (1) January 1, 1990, or
2 (2) the January 1 on or next after the date on which the
3 survivor annuity begins, if the deceased member died while
4 receiving a retirement annuity, or in all other cases the
5 January 1 nearest the first anniversary of the date the
6 survivor annuity payments begin, every survivors insurance
7 beneficiary shall receive an increase in his or her monthly
8 survivors annuity of 3%. On each January 1 after the initial
9 increase, the monthly survivors annuity shall be increased by
10 3% of the total survivors annuity provided under this
11 Article, including previous increases provided by this
12 subsection. Such increases shall apply to the survivors
13 insurance beneficiaries of each participant and annuitant,
14 whether or not the employment status of the participant or
15 annuitant terminates before the effective date of this
16 amendatory Act of 1990. This subsection (j) also applies to
17 persons receiving a survivor annuity under the portable
18 benefit package.
19 (k) If the Internal Revenue Code of 1986, as amended,
20 requires that the survivors benefits be payable at an age
21 earlier than that specified in this Section the benefits
22 shall begin at the earlier age, in which event, the
23 survivor's beneficiary shall be entitled only to that amount
24 which is equal to the actuarial equivalent of the benefits
25 provided by this Section.
26 (l) The changes made to this Section and Section 15-131
27 by this amendatory Act of 1997, relating to benefits for
28 certain unmarried children who are full-time students under
29 age 22, apply without regard to whether the deceased member
30 was in service on or after the effective date of this
31 amendatory Act of 1997. These changes do not authorize the
32 repayment of a refund or a re-election of benefits, and any
33 benefit or increase in benefits resulting from these changes
34 is not payable retroactively for any period before the
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1 effective date of this amendatory Act of 1997.
2 (Source: P.A. 90-448, eff. 8-16-97; 90-766, eff. 8-14-98;
3 91-887, eff. 7-6-00.)
4 (40 ILCS 5/16-133.1) (from Ch. 108 1/2, par. 16-133.1)
5 Sec. 16-133.1. Automatic annual increase in annuity.
6 (a) Each member with creditable service and retiring on
7 or after August 26, 1969 is entitled to the automatic annual
8 increases in annuity provided under this Section while
9 receiving a retirement annuity or disability retirement
10 annuity from the system.
11 An annuitant shall first be entitled to an initial
12 increase under this Section on the January 1 next following
13 the first anniversary of retirement, or January 1 of the year
14 next following attainment of age 61, whichever is later. At
15 such time, the system shall pay an initial increase
16 determined as follows: 1.5% of the originally granted
17 retirement annuity or disability retirement annuity
18 multiplied by the number of years elapsed from the later of
19 (1) attainment of age 55, or (2) the date of retirement,
20 until January 1, 1972, plus 2% of the originally granted
21 annuity multiplied by the number of years elapsed between
22 January 1, 1972 and January 1, 1978, plus 3% of the
23 originally granted annuity multiplied by the number of years
24 elapsed between January 1, 1978 and the effective date of the
25 initial increase. However, the initial annual increase
26 calculated under this Section for the recipient of a
27 disability retirement annuity granted under Section 16-149.2
28 shall be reduced by an amount equal to the total of all
29 increases in that annuity received under Section 16-149.5
30 (but not exceeding 100% of the amount of the initial increase
31 otherwise provided under this Section).
32 Following the initial increase, automatic annual
33 increases in annuity shall be payable on each January 1
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1 thereafter during the lifetime of the annuitant, determined
2 as a percentage of the originally granted retirement annuity
3 or disability retirement annuity for increases granted prior
4 to January 1, 1990, and calculated as a percentage of the
5 total amount of annuity, including previous increases under
6 this Section, for increases granted on or after January 1,
7 1990, as follows: 1.5% for periods prior to January 1, 1972,
8 2% for periods after December 31, 1971 and prior to January
9 1, 1978, and 3% for periods after December 31, 1977.
10 (b) The automatic annual increases in annuity provided
11 under this Section shall not be applicable unless a member
12 has made contributions toward such increases for a period
13 equivalent to one full year of creditable service. If a
14 member contributes for service performed after August 26,
15 1969 but the member becomes an annuitant before such
16 contributions amount to one full year's contributions based
17 on the salary at the date of retirement, he or she may pay
18 the necessary balance of the contributions to the system and
19 be eligible for the automatic annual increases in annuity
20 provided under this Section.
21 (c) Each member shall make contributions toward the cost
22 of the automatic annual increases in annuity as provided
23 under Section 16-152.
24 (d) An annuitant receiving a retirement annuity or
25 disability retirement annuity on July 1, 1969, who
26 subsequently re-enters service as a teacher is eligible for
27 the automatic annual increases in annuity provided under this
28 Section if he or she renders at least one year of creditable
29 service following the latest re-entry.
30 (e) In addition to the automatic annual increases in
31 annuity provided under this Section, an annuitant who meets
32 the service requirements of this Section and whose retirement
33 annuity or disability retirement annuity began on or before
34 January 1, 1971 shall receive, on January 1, 1981, an
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1 increase in the annuity then being paid of one dollar per
2 month for each year of creditable service. On January 1,
3 1982, an annuitant whose retirement annuity or disability
4 retirement annuity began on or before January 1, 1977 shall
5 receive an increase in the annuity then being paid of one
6 dollar per month for each year of creditable service.
7 On January 1, 1987, any annuitant whose retirement
8 annuity began on or before January 1, 1977, shall receive an
9 increase in the monthly retirement annuity equal to 8¢ per
10 year of creditable service times the number of years that
11 have elapsed since the annuity began.
12 (f) On January 1, 2002, every annuitant who began
13 receiving a retirement annuity on or before January 1, 1991
14 shall have the monthly retirement annuity increased by an
15 amount equal to 25¢ multiplied by the number of full years of
16 creditable service multiplied by the number of full years
17 that have elapsed since the annuity began. Every annuitant
18 who begins receiving a retirement annuity after January 1,
19 1991 and before July 1, 1998 shall have the monthly
20 retirement annuity increased on January 1, 2002 or on the
21 January 1 occurring on or next following the seventh
22 anniversary of retirement, whichever is later, by an amount
23 equal to $1.75 multiplied by the number of full years of
24 creditable service upon which the retirement annuity is
25 based. The increase under this subsection shall be included
26 in the calculation of increases granted simultaneously or
27 thereafter under subsection (a).
28 (Source: P.A. 86-273; 86-1488.)
29 (40 ILCS 5/16-143.1) (from Ch. 108 1/2, par. 16-143.1)
30 Sec. 16-143.1. Increase in survivor benefits.
31 (a) Beginning January 1, 1990, each survivor's benefit
32 and each reversionary annuity payable under Section 16-136
33 shall be increased by 3% of the currently payable amount
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1 thereof (1) on each January 1 occurring on or after the
2 commencement of the annuity if the deceased teacher died
3 while receiving a retirement or disability retirement
4 annuity, or (2) in other cases, on each January 1 occurring
5 on or after the first anniversary of the granting of the
6 benefit, without regard to whether the deceased teacher was
7 in service on or after the effective date of this amendatory
8 Act of 1991, but such increases shall not accrue for any
9 period prior to January 1, 1990.
10 (b) On January 1, 1981, any beneficiary who was
11 receiving a survivor's monthly benefit on or before January
12 1, 1971, shall have the benefit then being paid increased by
13 1% for each full year elapsed from the date the survivor's
14 benefit began. On January 1, 1982, any beneficiary who began
15 receiving a survivor's monthly benefit after January 1, 1971,
16 but before January 1, 1981 shall have the benefit then being
17 paid increased by 1% for each year elapsed from the date the
18 survivor's benefit began.
19 On January 1, 1987, any beneficiary whose monthly
20 survivor's benefit began on or before January 1, 1977, shall
21 have the monthly survivor's benefit increased by $1 for each
22 full year which has elapsed since the date the survivor's
23 benefit began.
24 (c) On January 1, 2002, every survivor who began
25 receiving a survivor's benefit on or before January 1, 1991
26 shall have the monthly survivor's benefit increased by an
27 amount equal to 25¢ multiplied by the number of full years of
28 the deceased's creditable service multiplied by the sum of
29 (i) the number of full years that have elapsed since the
30 survivor's benefit began and (ii) the number of full years,
31 if any, during which the deceased received a retirement
32 annuity under this Article. Every survivor who begins
33 receiving a survivor's benefit after January 1, 1991 and
34 before January 1, 2002 shall have the monthly survivor's
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1 benefit increased on January 1, 2002 or on the January 1
2 occurring on or next following the seventh anniversary of the
3 commencement of the survivor's benefit, whichever is later,
4 by an amount equal to 25¢ multiplied by the number of full
5 years of the deceased's creditable service multiplied by the
6 sum of (i) the number of full years that have elapsed since
7 the survivor's benefit began and (ii) the number of full
8 years, if any, during which the deceased received a
9 retirement annuity under this Article. The increase under
10 this subsection shall be included in the calculation of
11 increases granted simultaneously or thereafter under
12 subsection (a).
13 (Source: P.A. 86-273; 86-1488.)
14 (40 ILCS 5/17-119) (from Ch. 108 1/2, par. 17-119)
15 Sec. 17-119. Automatic annual increase in pension.
16 (a) Each teacher retiring on or after September 1, 1959,
17 is entitled to the annual increase in pension, defined
18 herein, while he is receiving a pension from the Fund.
19 1. The term "base pension" means a service
20 retirement or disability retirement pension in the amount
21 fixed and payable at the date of retirement of a teacher.
22 2. The annual increase in pension shall be at the
23 rate of 1 1/2% of base pension. This increase shall first
24 occur in January of the year next following the first
25 anniversary of retirement. At such time the Fund shall
26 pay the pro rata part of the increase for the period from
27 the first anniversary date to the date of the first
28 increase in pension. Beginning January 1, 1972, the rate
29 of annual increase in pension shall be 2% of the base
30 pension. Beginning January 1, 1979, the rate of annual
31 increase in pension shall be 3% of the base pension.
32 Beginning January 1, 1990, all automatic annual increases
33 payable under this Section shall be calculated as a
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1 percentage of the total pension payable at the time of
2 the increase, including all increases previously granted
3 under this Article, notwithstanding Section 17-157.
4 3. An increase in pension shall be granted only if
5 the retired teacher is age 60 or over. If the teacher
6 attains age 60 after retirement, the increase in pension
7 shall begin in January of the year following the 61st
8 birthday. At such time the Fund also shall pay the pro
9 rata part of the increase from the 61st birthday to the
10 date of first increase in pension.
11 (b) In addition to other increases which may be provided
12 by this Section, on January 1, 1981 any teacher who was
13 receiving a retirement pension on or before January 1, 1971
14 shall have his retirement pension then being paid increased
15 $1 per month for each year of creditable service. On January
16 1, 1982, any teacher whose retirement pension began on or
17 before January 1, 1977, shall have his retirement pension
18 then being paid increased $1 per month for each year of
19 creditable service.
20 On January 1, 1987, any teacher whose retirement pension
21 began on or before January 1, 1977, shall have the monthly
22 retirement pension increased by an amount equal to 8¢ per
23 year of creditable service times the number of years that
24 have elapsed since the retirement pension began.
25 (c) On January 1, 2002, every pensioner who began
26 receiving a retirement pension on or before January 1, 1991
27 shall have the monthly retirement pension increased by an
28 amount equal to 25¢ multiplied by the number of full years of
29 creditable service multiplied by the number of full years
30 that have elapsed since the pension began. Every pensioner
31 who begins receiving a retirement pension after January 1,
32 1991 and before July 1, 1998 shall have the monthly
33 retirement pension increased on January 1, 2002 or on the
34 January 1 occurring on or next following the seventh
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1 anniversary of retirement, whichever is later, by an amount
2 equal to $1.75 multiplied by the number of full years of
3 creditable service upon which the retirement pension is
4 based. The increase under this subsection shall be included
5 in the calculation of increases granted simultaneously or
6 thereafter under subsection (a). Section 17-157 does not
7 apply to the increase provided under this subsection.
8 (Source: P.A. 90-566, eff. 1-2-98.)
9 (40 ILCS 5/17-122) (from Ch. 108 1/2, par. 17-122)
10 Sec. 17-122. Survivor's and children's pensions - Amount.
11 (a) Upon the death of a teacher who has completed at
12 least 1 1/2 years of contributing service with either this
13 Fund or the State Universities Retirement System or the
14 Teachers' Retirement System of the State of Illinois,
15 provided his death occurred while (a) in active service
16 covered by the Fund or during his first 18 months of
17 continuous employment without a break in service under any
18 other participating system as defined in the Illinois
19 Retirement Systems Reciprocal Act except the State
20 Universities Retirement System and the Teachers' Retirement
21 System of the State of Illinois, (b) on a creditable leave of
22 absence, (c) on a noncreditable leave of absence of no more
23 than one year, or (d) a pension was deferred or pending
24 provided the teacher had at least 10 years of validated
25 service credit, or upon the death of a pensioner otherwise
26 qualified for such benefit, the surviving spouse and
27 unmarried minor children of the deceased teacher under age 18
28 shall be entitled to pensions, under the conditions stated
29 hereinafter. Such survivor's and children's pensions shall
30 be based on the average of the 4 highest consecutive years of
31 salary in the last 10 years of service or on the average
32 salary for total service, if total service has been less than
33 4 years, according to the following percentages:
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1 30% of average salary or 50% of the retirement
2 pension earned by the teacher, whichever is larger,
3 subject to the prescribed maximum monthly payment, for a
4 surviving spouse alone on attainment of age 50;
5 60% of average salary for a surviving spouse and
6 eligible minor children of the deceased teacher.
7 If no eligible spouse survives, or the surviving spouse
8 remarries, or the parent of the children of the deceased
9 member is otherwise ineligible for a survivor's pension, a
10 children's pension for eligible minor children under age 18
11 shall be paid to their parent or legal guardian for their
12 benefit according to the following percentages:
13 30% of average salary for one child;
14 60% of average salary for 2 or more children.
15 (b) On January 1, 1981, any survivor or child who was
16 receiving a survivor's or children's pension on or before
17 January 1, 1971, shall have his survivor's or children's
18 pension then being paid increased by 1% for each full year
19 which has elapsed from the date the pension began. On
20 January 1, 1982, any survivor or child whose pension began
21 after January 1, 1971, but before January 1, 1981, shall have
22 his survivor's or children's pension then being paid
23 increased 1% for each full year which has elapsed from the
24 date the pension began. On January 1, 1987, any survivor or
25 child whose pension began on or before January 1, 1977, shall
26 have the monthly survivor's or children's pension increased
27 by $1 for each full year which has elapsed since the pension
28 began.
29 (c) On January 1, 2002, every survivor or child who
30 began receiving a survivor's or children's pension on or
31 before January 1, 1991 shall have the monthly pension
32 increased by an amount equal to 25¢ multiplied by the number
33 of full years of the deceased's creditable service multiplied
34 by the sum of (i) the number of full years that have elapsed
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1 since the survivor's or children's pension began and (ii) the
2 number of full years, if any, during which the deceased
3 received a retirement pension under this Article. Every
4 survivor or child who begins receiving a survivor's or
5 children's pension after January 1, 1991 and before January
6 1, 2002 shall have the monthly pension increased on January
7 1, 2002 or on the January 1 occurring on or next following
8 the seventh anniversary of the commencement of the pension,
9 whichever is later, by an amount equal to 25¢ multiplied by
10 the number of full years of the deceased's creditable service
11 multiplied by the sum of (i) the number of full years that
12 have elapsed since the survivor's annuity began and (ii) the
13 number of full years, if any, during which the deceased
14 received a retirement pension under this Article. The
15 increase under this subsection shall be included in the
16 calculation of increases granted simultaneously or thereafter
17 under subsection (d). Section 17-157 does not apply to the
18 increase provided under this subsection.
19 (d) Beginning January 1, 1990, every survivor's and
20 children's pension shall be increased (1) on each January 1
21 occurring on or after the commencement of the pension if the
22 deceased teacher died while receiving a retirement pension,
23 or (2) in other cases, on each January 1 occurring on or
24 after the first anniversary of the commencement of the
25 pension, by an amount equal to 3% of the current amount of
26 the pension, including all increases previously granted under
27 this Article, notwithstanding Section 17-157. Such increases
28 shall apply without regard to whether the deceased teacher
29 was in service on or after the effective date of this
30 amendatory Act of 1991, but shall not accrue for any period
31 prior to January 1, 1990.
32 (e) Subject to the minimum established below, the
33 maximum amount of pension for a surviving spouse alone or one
34 minor child shall be $400 per month, and the maximum combined
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1 pensions for a surviving spouse and children of the deceased
2 teacher shall be $600 per month, with individual pensions
3 adjusted for all beneficiaries pro rata to conform with this
4 limitation. If proration is unnecessary the minimum
5 survivor's and children's pensions shall be $40 per month.
6 The minimum total survivor's and children's pension payable
7 upon the death of a contributor or annuitant which occurs
8 after December 31, 1986, shall be 50% of the earned
9 retirement pension of such contributor or annuitant,
10 calculated without early retirement discount in the case of
11 death in service.
12 On death after retirement, the total survivor's and
13 children's pensions shall not exceed the monthly retirement
14 or disability pension paid to the deceased retirant.
15 Survivor's and children's benefits described in this Section
16 shall apply to all service and disability pensioners eligible
17 for a pension as of July 1, 1981.
18 (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
19 Section 90. The State Mandates Act is amended by adding
20 Section 8.25 as follows:
21 (30 ILCS 805/8.25 new)
22 Sec. 8.25. Exempt mandate. Notwithstanding Sections 6
23 and 8 of this Act, no reimbursement by the State is required
24 for the implementation of any mandate created by this
25 amendatory Act of the 92nd General Assembly.
26 Section 99. Effective date. This Act takes effect upon
27 becoming law.