093_HB2254

 
                                     LRB093 07417 EFG 07581 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 5-132 as follows:

 6        (40 ILCS 5/5-132) (from Ch. 108 1/2, par. 5-132)
 7        Sec. 5-132. Minimum annuity.
 8        (A)  Any  policeman  who  withdraws  on  or after July 8,
 9    1957, or any policeman transferred to the police  service  of
10    the  city  under  the  Exchange  of Functions Act of 1957 who
11    withdraws on or after July  17,  1959,  after  completing  at
12    least  20  years  of  service, for whom the annuity otherwise
13    provided in this Article is less than  that  stated  in  this
14    Section, has a right to receive annuity as follows:
15             (a)  If  he  is  age  55  or more on withdrawal, his
16        annuity after such withdrawal, shall be equal  to  2%  of
17        the  average  salary  for  4 consecutive years of highest
18        salaries within the  last  10  years  of  service  before
19        withdrawal,  for  each year of service, together with 1/6
20        of 1% of such average salary for each complete  month  of
21        service of each fractional year, but not in excess of 75%
22        of the average annual salary.
23             (b)  If he is age 50 or more but less than age 55 on
24        withdrawal,  his  annuity  shall  be  equal  to 2% of the
25        average salary for the 4 highest consecutive years of the
26        last 10 years  of  service  for  each  year  of  service,
27        together  with 1/16 of 1% of such average salary for each
28        month of each fractional year of service, reduced by  1/2
29        of 1% for each month that he is less than age 55.
30             (c)  If  he  is  less  than age 50 on withdrawal, he
31        may, upon attainment of age 50 or over,  become  entitled
 
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 1        to  the annuity provided in this Section or, he may, upon
 2        application before  age  50,  receive  a  refund  of  the
 3        deductions from salary, plus interest at 1 1/2% per annum
 4        if he is entitled to refund under Section 5-163.
 5             (d)  In   lieu   of  the  annuity  provided  in  the
 6        foregoing provisions of this Section 5-132 any  policeman
 7        who  withdraws  from the service after December 31, 1973,
 8        after having attained age 53 in the service  with  23  or
 9        more  years  of  service  credit  shall be entitled to an
10        annuity computed as follows if such  annuity  is  greater
11        than  that  provided  in the foregoing paragraphs of this
12        Section 5-132: An annuity equal to  50%  of  the  average
13        salary for the 4 highest consecutive years of the last 10
14        years  of  service plus additional annuity equal to 2% of
15        such average salary for each completed year of service or
16        fraction thereof rendered after his attainment of age  53
17        and the completion of 23 years of service.
18             Any  policeman who has completed 23 years of service
19        prior to his attainment of age  53  in  the  service  and
20        continues  in  the service until his attainment of age 53
21        shall have added to his annuity, computed as provided  in
22        the   immediately   preceding  paragraph,  an  additional
23        annuity equal to 1%  of  such  average  salary  for  each
24        completed  year  of service or fraction thereof in excess
25        of 23 years up to age 53.
26             (e)  In  lieu  of  the  annuity  provided   in   the
27        foregoing  provisions  of this Section, any policeman who
28        withdraws from the service either (i) after December  31,
29        1983  with at least 22 years of service credit and having
30        attained age 52 in the service, or  (ii)  after  December
31        31,  1984  with  at  least 21 years of service credit and
32        having attained age 51 in the  service,  or  (iii)  after
33        December  31,  1985  with  at  least  20 years of service
34        credit and having attained age 50 in the service, or (iv)
 
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 1        after December 31,  1990,  with  at  least  20  years  of
 2        service credit regardless of age, shall be entitled to an
 3        annuity  to begin not earlier than upon attainment of age
 4        50 if under such age at withdrawal, computed as  follows:
 5        an  annuity  equal to 50% of the average salary for the 4
 6        highest  consecutive  years  of  the  last  10  years  of
 7        service, plus additional annuity  equal  to  2%  of  such
 8        average  salary  for  each  completed  year of service or
 9        fraction thereof rendered after  his  completion  of  the
10        minimum number of years of service required for him to be
11        eligible  under this subsection (e). However, the annuity
12        provided under this subsection (e) may not exceed 75%  of
13        such average salary.
14        (B) (f)  A policeman withdrawing after September 1, 1969,
15    may,  in  addition,  be  entitled to the benefits provided by
16    Section 5-167.1 of this Article if he so qualifies under that
17    Section.
18        (C)  If, on withdrawal, total service  is  less  than  20
19    years,  the  policeman  shall  not  be entitled to an annuity
20    under this Section but may receive an annuity under the other
21    provisions of this Article  or,  if  entitled  thereto  under
22    Section  5-163,  a  refund  of  the  deductions  from salary,
23    including, in the case of policemen transferred to the police
24    service of the city under the Exchange of  Functions  Act  of
25    1957,  the  additional  contribution  paid on salary received
26    from August 1, 1957, to July 17, 1959,  as  provided  in  the
27    Park  Policemen's  Annuity  Act,  together with interest at 1
28    1/2% per annum.
29        Moneys  voluntarily  contributed  under  the  Policemen's
30    Annuity and Benefit Fund Act of the Illinois Municipal  Code,
31    or the Park Policemen's Annuity Act, shall be refunded to the
32    contributing  policemen  who  were  in  service on January 1,
33    1954, or in the case of policemen transferred to  the  police
34    service  of  the  city under the Exchange of Functions Act of
 
                            -4-      LRB093 07417 EFG 07581 b
 1    1957, who were in service on July 17, 1959.
 2        The age and service annuity formula in this Section shall
 3    not apply to any policeman who, having retired before July 8,
 4    1957, or before July 17, 1959, in the  case  of  a  policeman
 5    transferred under the provisions of the Exchange of Functions
 6    Act  of  1957, re-enters the police service after such dates,
 7    whichever are applicable.
 8        (D)  For the purpose of this  Section,  "average  salary"
 9    means:
10             (1)  for a policeman withdrawing from service before
11        January 1, 2004, the average of the highest 4 consecutive
12        years of salary within the last 10 years of service;
13             (2)  for  a policeman withdrawing from service on or
14        after January 1, 2004, the  average  of  the  highest  12
15        consecutive  months of salary within the last 10 years of
16        service.
17    (Source: P.A. 86-1488.)

18        Section 90.  The State Mandates Act is amended by  adding
19    Section 8.27 as follows:

20        (30 ILCS 805/8.27 new)
21        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
22    and 8 of this Act, no reimbursement by the State is  required
23    for  the  implementation  of  any  mandate  created  by  this
24    amendatory Act of the 93rd General Assembly.

25        Section  99.  Effective date.  This Act takes effect upon
26    becoming law.