093_HB1473

 
                                     LRB093 06623 EFG 06755 b

 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 Section 7-142 as follows:

 6        (40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
 7        Sec. 7-142.  Retirement annuities - Amount.
 8        (a)  The amount of a retirement annuity shall be the  sum
 9    of the following, determined in accordance with the actuarial
10    tables in effect at the time of the grant of the annuity:
11             1.  For  employees  with 8 or more years of service,
12        an annuity computed pursuant to subparagraphs a or  b  of
13        this  subparagraph  1,  whichever  is the higher, and for
14        employees with less than 8 years of service  the  annuity
15        computed pursuant to subparagraph a:
16                  a.  The  monthly  annuity which can be provided
17             from the total accumulated normal, municipality  and
18             prior service credits, as of the attained age of the
19             employee  on  the  date  the annuity begins provided
20             that such annuity shall not exceed 75% of the  final
21             rate of earnings of the employee.
22                  b.  (i)  The  monthly annuity amount determined
23             as follows by multiplying (a) 1 2/3% for  annuitants
24             with  not  more  than 15 years or (b) 1 2/3% for the
25             first 15 years and 2% for each year in excess of  15
26             years  for annuitants with more than 15 years by the
27             number of years plus fractional years, prorated on a
28             basis of months, of creditable service and  multiply
29             the  product thereof by the employee's final rate of
30             earnings.
31                  (ii)  For the sole  purpose  of  computing  the
 
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 1             formula (and not for the purposes of the limitations
 2             hereinafter  stated)  $125  shall  be considered the
 3             final rate of earnings in all cases where the  final
 4             rate of earnings is less than that such amount.
 5                  (iii)  The    monthly   annuity   computed   in
 6             accordance  with  this  subparagraph  b,  shall  not
 7             exceed an amount equal to 75% of the final  rate  of
 8             earnings.
 9                  (iv)  For employees who have less than 35 years
10             of  service, the annuity computed in accordance with
11             this subparagraph b (as reduced  by  application  of
12             subparagraph  (iii) above) shall be reduced by 0.25%
13             thereof  (0.5%  if  service  was  terminated  before
14             January 1, 1988) for each month or fraction  thereof
15             (1)  that  the employee's age is less than 60 years,
16             or (2) if the employee has  at  least  30  years  of
17             service  credit,  that the employee's service credit
18             is less than 35 years, whichever  is  less,  on  the
19             date the annuity begins.
20             2.  The annuity which can be provided from the total
21        accumulated  additional credits as of the attained age of
22        the employee on the date the annuity begins.
23        (b)  If  payment  of  an  annuity  begins  prior  to  the
24    earliest age at which the employee will become  eligible  for
25    an  old  age  insurance  benefit  under  the  Federal  Social
26    Security  Act,  he  may  elect that the annuity payments from
27    this fund shall exceed those payable after his attaining such
28    age by an amount, computed as  determined  by  rules  of  the
29    Board,  but  not  in  excess of his estimated Social Security
30    Benefit, determined as of the effective date of the  annuity,
31    provided  that  in  no  case shall the total annuity payments
32    made by this fund exceed in actuarial value the annuity which
33    would have been payable had no such election been made.
34        (c)  The retirement annuity shall be increased each  year
 
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 1    by  2%,  not  compounded,  of  the monthly amount of annuity,
 2    taking into consideration any adjustment under paragraph  (b)
 3    of  this  Section.  This  increase  shall  be  effective each
 4    January 1  and  computed  from  the  effective  date  of  the
 5    retirement  annuity,  the  first  increase being .167% of the
 6    monthly amount times the number of months from the  effective
 7    date  to January 1. Beginning January 1, 1984 and thereafter,
 8    the retirement annuity shall be increased by  3%  each  year,
 9    not  compounded.  This  increase  shall  not be applicable to
10    annuitants who are not in service on or  after  September  8,
11    1971.
12    (Source: P.A. 91-357, eff. 7-29-99.)