93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB4642

 

Introduced 2/4/2004, by Lou Lang

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/14-114   from Ch. 108 1/2, par. 14-114
40 ILCS 5/14-119   from Ch. 108 1/2, par. 14-119
40 ILCS 5/14-121   from Ch. 108 1/2, par. 14-121
40 ILCS 5/15-136   from Ch. 108 1/2, par. 15-136
40 ILCS 5/15-136.3
40 ILCS 5/15-145   from Ch. 108 1/2, par. 15-145
40 ILCS 5/16-133.1   from Ch. 108 1/2, par. 16-133.1
40 ILCS 5/16-143.1   from Ch. 108 1/2, par. 16-143.1
40 ILCS 5/17-119   from Ch. 108 1/2, par. 17-119
40 ILCS 5/17-122   from Ch. 108 1/2, par. 17-122
30 ILCS 805/8.28 new

    Amends the State Employee, State Universities, Downstate Teacher, and Chicago Teacher Articles of the Illinois Pension Code to provide for a one-time increase in certain retirement and survivor's annuities. Amends the State Mandates Act to require implementation without reimbursement. Effective immediately.


LRB093 14988 LRD 40557 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

HB4642 LRB093 14988 LRD 40557 b

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 changing
6 Sections 14-114, 14-119, 14-121, 15-136, 15-136.3, 15-145,
7 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 or who retires on or after January 1, 2001 at an age which,
14 when added to the number of years of his or her creditable
15 service, equals at least 85, shall, on January 1 next following
16 the first full year of retirement, have the amount of the then
17 fixed and payable monthly retirement annuity increased 3%. Any
18 person receiving a retirement annuity under this Article who
19 retires before attainment of age 60 and with less than (i) 35
20 years of creditable service if retirement is before January 1,
21 2001, or (ii) the number of years of creditable service which,
22 when added to the member's age, would equal 85, if retirement
23 is on or after January 1, 2001, shall have the amount of the
24 fixed and payable retirement annuity increased by 3% on the
25 January 1 occurring on or next following (1) attainment of age
26 60, or (2) the first anniversary of retirement, whichever
27 occurs later. However, for persons who receive the alternative
28 retirement annuity under Section 14-110, references in this
29 subsection (a) to attainment of age 60 shall be deemed to refer
30 to attainment of age 55. For a person receiving early
31 retirement incentives under Section 14-108.3 whose retirement
32 annuity began after January 1, 1992 pursuant to an extension

 

 

HB4642 - 2 - LRB093 14988 LRD 40557 b

1 granted under subsection (e) of that Section, the first
2 anniversary of retirement shall be deemed to be January 1,
3 1993. For a person who retires on or after June 28, 2001 and on
4 or before October 1, 2001, and whose retirement annuity is
5 calculated, in whole or in part, under Section 14-110 or
6 subsection (g) or (h) of Section 14-108, the first anniversary
7 of retirement shall be deemed to be January 1, 2002.
8     On each January 1 following the date of the initial
9 increase under this subsection, the employee's monthly
10 retirement annuity shall be increased by an additional 3%.
11     Beginning January 1, 1990, all automatic annual increases
12 payable under this Section shall be calculated as a percentage
13 of the total annuity payable at the time of the increase,
14 including previous increases granted under this Article.
15     (b) The provisions of subsection (a) of this Section shall
16 be applicable to an employee only if the employee makes the
17 additional contributions required after December 31, 1969 for
18 the purpose of the automatic increases for not less than the
19 equivalent of one full year. If an employee becomes an
20 annuitant before his additional contributions equal one full
21 year's contributions based on his salary at the date of
22 retirement, the employee may pay the necessary balance of the
23 contributions to the system, without interest, and be eligible
24 for the increasing annuity authorized by this Section.
25     (c) The provisions of subsection (a) of this Section shall
26 not be applicable to any annuitant who is on retirement on
27 December 31, 1969, and thereafter returns to State service,
28 unless the member has established at least one year of
29 additional creditable service following reentry into service.
30     (d) In addition to other increases which may be provided by
31 this Section, on January 1, 1981 any annuitant who was
32 receiving a retirement annuity on or before January 1, 1971
33 shall have his retirement annuity then being paid increased $1
34 per month for each year of creditable service. On January 1,
35 1982, any annuitant who began receiving a retirement annuity on
36 or before January 1, 1977, shall have his retirement annuity

 

 

HB4642 - 3 - LRB093 14988 LRD 40557 b

1 then being paid increased $1 per month for each year of
2 creditable service.
3     On January 1, 1987, any annuitant who began receiving a
4 retirement annuity on or before January 1, 1977, shall have the
5 monthly retirement annuity increased by an amount equal to 8¢
6 per year of creditable service times the number of years that
7 have elapsed since the annuity began.
8     (d-1) On January 1, 2005, every annuitant who began
9 receiving a retirement annuity on or before January 1, 1991
10 shall have the monthly retirement annuity increased by an
11 amount equal to 25¢ multiplied by the number of full years of
12 creditable service multiplied by the number of full years that
13 have elapsed since the annuity began. Every annuitant who
14 begins receiving a retirement annuity after January 1, 1991 and
15 before January 1, 1998 shall have the monthly retirement
16 annuity increased on January 1, 2005 or on the January 1
17 occurring on or next following the seventh anniversary of
18 retirement, whichever is later, by an amount equal to $1.75
19 multiplied by the number of full years of creditable service
20 upon which the retirement annuity is based. The increase under
21 this subsection shall be included in the calculation of
22 increases granted simultaneously or thereafter under
23 subsection (a).
24     (e) Every person who receives the alternative retirement
25 annuity under Section 14-110 and who is eligible to receive the
26 3% increase under subsection (a) on January 1, 1986, shall also
27 receive on that date a one-time increase in retirement annuity
28 equal to the difference between (1) his actual retirement
29 annuity on that date, including any increases received under
30 subsection (a), and (2) the amount of retirement annuity he
31 would have received on that date if the amendments to
32 subsection (a) made by Public Act 84-162 had been in effect
33 since the date of his retirement.
34 (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
35 92-651, eff. 7-11-02.)
 

 

 

HB4642 - 4 - LRB093 14988 LRD 40557 b

1     (40 ILCS 5/14-119)  (from Ch. 108 1/2, par. 14-119)
2     Sec. 14-119. Amount of widow's annuity.
3     (a) The widow's annuity shall be 50% of the amount of
4 retirement annuity payable to the member on the date of death
5 while on retirement if an annuitant, or on the date of his
6 death while in service if an employee, regardless of his age on
7 such date, or on the date of withdrawal if death occurred after
8 termination of service under the conditions prescribed in the
9 preceding Section.
10     (b) If an eligible widow, regardless of age, has in her
11 care any unmarried child or children of the member under age 18
12 (under age 22 if a full-time student), the widow's annuity
13 shall be increased in the amount of 5% of the retirement
14 annuity for each such child, but the combined payments for a
15 widow and children shall not exceed 66 2/3% of the member's
16 earned retirement annuity.
17     The amount of retirement annuity from which the widow's
18 annuity is derived shall be that earned by the member without
19 regard to whether he attained age 60 prior to his withdrawal
20 under the conditions stated or prior to his death.
21     (c) Adopted children shall be considered as children of the
22 member only if the proceedings for adoption were commenced at
23 least 1 year prior to the member's death.
24     Marriage of a child shall render the child ineligible for
25 further consideration in the increase in the amount of the
26 widow's annuity.
27     Attainment of age 18 (age 22 if a full-time student) shall
28 render a child ineligible for further consideration in the
29 increase of the widow's annuity, but the annuity to the widow
30 shall be continued thereafter, without regard to her age at
31 that time.
32     (d) A widow's annuity payable on account of any covered
33 employee who shall have been a covered employee for at least 18
34 months shall be reduced by 1/2 of the amount of survivors
35 benefits to which his beneficiaries are eligible under the
36 provisions of the Federal Social Security Act, except that (1)

 

 

HB4642 - 5 - LRB093 14988 LRD 40557 b

1 the amount of any widow's annuity payable under this Article
2 shall not be reduced by reason of any increase under that Act
3 which occurs after the offset required by this subsection is
4 first applied to that annuity, and (2) for benefits granted on
5 or after January 1, 1992, the offset under this subsection (d)
6 shall not exceed 50% of the amount of widow's annuity otherwise
7 payable.
8     (e) Upon the death of a recipient of a widow's annuity the
9 excess, if any, of the member's accumulated contributions plus
10 credited interest over all annuity payments to the member and
11 widow, exclusive of the $500 lump sum payment, shall be paid to
12 the named beneficiary of the widow, or if none has been named,
13 to the estate of the widow, provided no reversionary annuity is
14 payable.
15     (f) On January 1, 1981, any recipient of a widow's annuity
16 who was receiving a widow's annuity on or before January 1,
17 1971, shall have her widow's annuity then being paid increased
18 by 1% for each full year which has elapsed from the date the
19 widow's annuity began. On January 1, 1982, any recipient of a
20 widow's annuity who began receiving a widow's annuity after
21 January 1, 1971, but before January 1, 1981, shall have her
22 widow's annuity then being paid increased by 1% for each full
23 year which has elapsed from the date the widow's annuity began.
24 On January 1, 1987, any recipient of a widow's annuity who
25 began receiving the widow's annuity on or before January 1,
26 1977, shall have the monthly widow's annuity increased by $1
27 for each full year which has elapsed since the date the annuity
28 began.
29     (f-1) On January 1, 2005, every widow who began receiving a
30 widow's annuity on or before January 1, 1991 shall have the
31 monthly widow's annuity increased by an amount equal to 25¢
32 multiplied by the number of full years of the deceased spouse's
33 creditable service multiplied by the sum of (i) the number of
34 full years that have elapsed since the widow's annuity began
35 and (ii) the number of full years, if any, during which the
36 deceased spouse received a retirement annuity under this

 

 

HB4642 - 6 - LRB093 14988 LRD 40557 b

1 Article. Every widow who begins receiving a widow's annuity
2 after January 1, 1991 and before January 1, 2005 shall have the
3 monthly widow's annuity increased on January 1, 2005 or on the
4 January 1 occurring on or next following the seventh
5 anniversary of the commencement of the widow's annuity,
6 whichever is later, by an amount equal to 25¢ multiplied by the
7 number of full years of the deceased spouse's creditable
8 service multiplied by the sum of (i) the number of full years
9 that have elapsed since the widow's annuity began and (ii) the
10 number of full years, if any, during which the deceased spouse
11 received a retirement annuity under this Article. The increase
12 under this subsection shall be included in the calculation of
13 increases granted simultaneously or thereafter under
14 subsection (g).
15     (g) Beginning January 1, 1990, every widow's annuity shall
16 be increased (1) on each January 1 occurring on or after the
17 commencement of the annuity if the deceased member died while
18 receiving a retirement annuity, or (2) in other cases, on each
19 January 1 occurring on or after the first anniversary of the
20 commencement of the annuity, by an amount equal to 3% of the
21 current amount of the annuity, including any previous increases
22 under this Article. Such increases shall apply without regard
23 to whether the deceased member was in service on or after the
24 effective date of Public Act 86-1488, but shall not accrue for
25 any period prior to January 1, 1990.
26 (Source: P.A. 90-448, eff. 8-16-97.)
 
27     (40 ILCS 5/14-121)  (from Ch. 108 1/2, par. 14-121)
28     Sec. 14-121. Amount of survivors annuity. A survivors
29 annuity beneficiary shall be entitled upon death of the member
30 to a single sum payment of $1,000, payable pro rata among all
31 persons entitled thereto, together with a survivors annuity
32 payable at the rates and under the conditions specified in this
33 Article.
34     (a) If the survivors annuity beneficiary is a spouse, the
35 survivors annuity shall be 30% of final average compensation

 

 

HB4642 - 7 - LRB093 14988 LRD 40557 b

1 subject to a maximum payment of $400 per month.
2     (b) If an eligible child or children under the care of a
3 spouse also survives the member, such spouse as natural
4 guardian of the child or children shall receive, in addition to
5 the foregoing annuity, 20% of final average compensation on
6 account of each such child and 10% of final average
7 compensation divided pro rata among such children, subject to a
8 maximum payment on account of all survivor annuity
9 beneficiaries of $600 per month, or 80% of the member's final
10 average compensation, whichever is the lesser.
11     (c) If the survivors annuity beneficiary or beneficiaries
12 consists of an unmarried child or children, the amount of
13 survivors annuity shall be 20% of final average compensation to
14 each child, and 10% of final average compensation divided pro
15 rata among all such children entitled to such annuity, subject
16 to a maximum payment to all children combined of $600 per month
17 or 80% of the member's final average compensation, whichever is
18 the lesser.
19     (d) If the survivors annuity beneficiary is one or more
20 dependent parents, the annuity shall be 20% of final average
21 compensation to each parent and 10% of final average
22 compensation divided pro rata among the parents who qualify for
23 this annuity, subject to a maximum payment to both dependent
24 parents of $400 per month.
25     (e) The survivors annuity to the spouse, children or
26 dependent parents of a member whose death occurs after the date
27 of last withdrawal, or after retirement, or while in service
28 following reentry into service after retirement but before
29 completing 1 1/2 years of additional creditable service, shall
30 not exceed the lesser of 80% of the member's earned retirement
31 annuity at the date of death or the maximum previously
32 established in this Section.
33     (f) In applying the limitation prescribed on the combined
34 payments to 2 or more survivors annuity beneficiaries, the
35 annuity on account of each beneficiary shall be reduced pro
36 rata until such time as the number of beneficiaries makes the

 

 

HB4642 - 8 - LRB093 14988 LRD 40557 b

1 reduction no longer applicable.
2     (g) A survivors annuity payable on account of any covered
3 employee who shall have been a covered employee for at least 18
4 months at date of death or last withdrawal, whichever is the
5 later, shall be reduced by 1/2 of the survivors benefits to
6 which his beneficiaries are eligible under the federal Social
7 Security Act, except that (1) the survivors annuity payable
8 under this Article shall not be reduced by any increase under
9 that Act which occurs after the offset required by this
10 subsection is first applied to that annuity, and (2) for
11 benefits granted on or after January 1, 1992, the offset under
12 this subsection (g) shall not exceed 50% of the amount of
13 survivors annuity otherwise payable.
14     (h) The minimum payment to a beneficiary hereunder shall be
15 $60 per month, which shall be reduced in accordance with the
16 limitation prescribed on the combined payments to all
17 beneficiaries of a member.
18     (i) Subject to the conditions set forth in Section 14-120,
19 the minimum total survivors annuity benefit payable to the
20 survivors annuity beneficiaries of a deceased member or
21 annuitant whose death occurs on or after January 1, 1984, shall
22 be 50% of the amount of retirement annuity that was or would
23 have been payable to the deceased on the date of death,
24 regardless of the age of the deceased on such date. If the
25 minimum total benefit provided by this subsection exceeds the
26 maximum otherwise imposed by this Section, the minimum total
27 benefit shall nevertheless be payable. Any increase in the
28 total survivors annuity benefit resulting from the operation of
29 this subsection shall be divided among the survivors annuity
30 beneficiaries of the deceased in proportion to their shares of
31 the total survivors annuity benefit otherwise payable under
32 this Section.
33     (j) Any survivors annuity beneficiary whose annuity
34 terminates due to any condition specified in this Article other
35 than death shall be entitled to a refund of the excess, if any,
36 of the accumulated contributions of the member plus credited

 

 

HB4642 - 9 - LRB093 14988 LRD 40557 b

1 interest over all payments to the member and beneficiary or
2 beneficiaries, exclusive of the single sum payment of $1,000,
3 provided no future survivors or reversionary annuity benefits
4 are payable.
5     (k) Upon the death of the last eligible recipient of a
6 survivors annuity the excess, if any, of the member's
7 accumulated contributions plus credited interest over all
8 annuity payments to the member and survivors exclusive of the
9 single sum payment of $1000, shall be paid to the named
10 beneficiary of the last eligible survivor, or if none has been
11 named, to the estate of the last eligible survivor, provided no
12 reversionary annuity is payable.
13     (l) On January 1, 1981, any survivor who was receiving a
14 survivors annuity on or before January 1, 1971, shall have his
15 survivors annuity then being paid increased by 1% for each full
16 year which has elapsed from the date the annuity began. On
17 January 1, 1982, any survivor who began receiving a survivor's
18 annuity after January 1, 1971, but before January 1, 1981,
19 shall have his survivor's annuity then being paid increased by
20 1% for each full year that has elapsed from the date the
21 annuity began. On January 1, 1987, any survivor who began
22 receiving a survivor's annuity on or before January 1, 1977,
23 shall have the monthly survivor's annuity increased by $1 for
24 each full year which has elapsed since the date the survivor's
25 annuity began.
26     (m) Beginning January 1, 1990, every survivor's annuity
27 shall be increased (1) on each January 1 occurring on or after
28 the commencement of the annuity if the deceased member died
29 while receiving a retirement annuity, or (2) in other cases, on
30 each January 1 occurring on or after the first anniversary of
31 the commencement of the annuity, by an amount equal to 3% of
32 the current amount of the annuity, including any previous
33 increases under this Article. Such increases shall apply
34 without regard to whether the deceased member was in service on
35 or after the effective date of Public Act 86-1488, but shall
36 not accrue for any period prior to January 1, 1990.

 

 

HB4642 - 10 - LRB093 14988 LRD 40557 b

1     (n) On January 1, 2005, every survivor who began receiving
2 a survivor's annuity on or before January 1, 1991 shall have
3 the monthly survivor's annuity increased by an amount equal to
4 25¢ multiplied by the number of full years of the deceased's
5 creditable service multiplied by the sum of (i) the number of
6 full years that have elapsed since the survivor's annuity began
7 and (ii) the number of full years, if any, during which the
8 deceased received a retirement annuity under this Article.
9 Every survivor who begins receiving a survivor's annuity after
10 January 1, 1991 and before January 1, 2005 shall have the
11 monthly survivor's annuity increased on January 1, 2005 or on
12 the January 1 occurring on or next following the seventh
13 anniversary of the commencement of the survivor's annuity,
14 whichever is later, by an amount equal to 25¢ multiplied by the
15 number of full years of the deceased's creditable service
16 multiplied by the sum of (i) the number of full years that have
17 elapsed since the survivor's annuity began and (ii) the number
18 of full years, if any, during which the deceased received a
19 retirement annuity under this Article. The increase under this
20 subsection shall be included in the calculation of increases
21 granted simultaneously or thereafter under subsection (m).
22 (Source: P.A. 86-273; 86-1488; 87-794.)
 
23     (40 ILCS 5/15-136)  (from Ch. 108 1/2, par. 15-136)
24     Sec. 15-136. Retirement annuities - Amount. The provisions
25 of this Section 15-136 apply only to those participants who are
26 participating in the traditional benefit package or the
27 portable benefit package and do not apply to participants who
28 are participating in the self-managed plan.
29     (a) The amount of a participant's retirement annuity,
30 expressed in the form of a single-life annuity, shall be
31 determined by whichever of the following rules is applicable
32 and provides the largest annuity:
33     Rule 1: The retirement annuity shall be 1.67% of final rate
34 of earnings for each of the first 10 years of service, 1.90%
35 for each of the next 10 years of service, 2.10% for each year

 

 

HB4642 - 11 - LRB093 14988 LRD 40557 b

1 of service in excess of 20 but not exceeding 30, and 2.30% for
2 each year in excess of 30; or for persons who retire on or
3 after January 1, 1998, 2.2% of the final rate of earnings for
4 each year of service.
5     Rule 2: The retirement annuity shall be the sum of the
6 following, determined from amounts credited to the participant
7 in accordance with the actuarial tables and the prescribed rate
8 of interest in effect at the time the retirement annuity
9 begins:
10         (i) the normal annuity which can be provided on an
11     actuarially equivalent basis, by the accumulated normal
12     contributions as of the date the annuity begins;
13         (ii) an annuity from employer contributions of an
14     amount equal to that which can be provided on an
15     actuarially equivalent basis from the accumulated normal
16     contributions made by the participant under Section
17     15-113.6 and Section 15-113.7 plus 1.4 times all other
18     accumulated normal contributions made by the participant;
19     and
20         (iii) the annuity that can be provided on an
21     actuarially equivalent basis from the entire contribution
22     made by the participant under Section 15-113.3.
23     With respect to a police officer or firefighter who retires
24 on or after August 14, 1998, the accumulated normal
25 contributions taken into account under clauses (i) and (ii) of
26 this Rule 2 shall include the additional normal contributions
27 made by the police officer or firefighter under Section
28 15-157(a).
29     The amount of a retirement annuity calculated under this
30 Rule 2 shall be computed solely on the basis of the
31 participant's accumulated normal contributions, as specified
32 in this Rule and defined in Section 15-116. Neither an employee
33 or employer contribution for early retirement under Section
34 15-136.2 nor any other employer contribution shall be used in
35 the calculation of the amount of a retirement annuity under
36 this Rule 2.

 

 

HB4642 - 12 - LRB093 14988 LRD 40557 b

1     This amendatory Act of the 91st General Assembly is a
2 clarification of existing law and applies to every participant
3 and annuitant without regard to whether status as an employee
4 terminates before the effective date of this amendatory Act.
5     Rule 3: The retirement annuity of a participant who is
6 employed at least one-half time during the period on which his
7 or her final rate of earnings is based, shall be equal to the
8 participant's years of service not to exceed 30, multiplied by
9 (1) $96 if the participant's final rate of earnings is less
10 than $3,500, (2) $108 if the final rate of earnings is at least
11 $3,500 but less than $4,500, (3) $120 if the final rate of
12 earnings is at least $4,500 but less than $5,500, (4) $132 if
13 the final rate of earnings is at least $5,500 but less than
14 $6,500, (5) $144 if the final rate of earnings is at least
15 $6,500 but less than $7,500, (6) $156 if the final rate of
16 earnings is at least $7,500 but less than $8,500, (7) $168 if
17 the final rate of earnings is at least $8,500 but less than
18 $9,500, and (8) $180 if the final rate of earnings is $9,500 or
19 more, except that the annuity for those persons having made an
20 election under Section 15-154(a-1) shall be calculated and
21 payable under the portable retirement benefit program pursuant
22 to the provisions of Section 15-136.4.
23     Rule 4: A participant who is at least age 50 and has 25 or
24 more years of service as a police officer or firefighter, and a
25 participant who is age 55 or over and has at least 20 but less
26 than 25 years of service as a police officer or firefighter,
27 shall be entitled to a retirement annuity of 2 1/4% of the
28 final rate of earnings for each of the first 10 years of
29 service as a police officer or firefighter, 2 1/2% for each of
30 the next 10 years of service as a police officer or
31 firefighter, and 2 3/4% for each year of service as a police
32 officer or firefighter in excess of 20. The retirement annuity
33 for all other service shall be computed under Rule 1.
34     For purposes of this Rule 4, a participant's service as a
35 firefighter shall also include the following:
36         (i) service that is performed while the person is an

 

 

HB4642 - 13 - LRB093 14988 LRD 40557 b

1     employee under subsection (h) of Section 15-107; and
2         (ii) in the case of an individual who was a
3     participating employee employed in the fire department of
4     the University of Illinois's Champaign-Urbana campus
5     immediately prior to the elimination of that fire
6     department and who immediately after the elimination of
7     that fire department transferred to another job with the
8     University of Illinois, service performed as an employee of
9     the University of Illinois in a position other than police
10     officer or firefighter, from the date of that transfer
11     until the employee's next termination of service with the
12     University of Illinois.
13     Rule 5: The retirement annuity of a participant who elected
14 early retirement under the provisions of Section 15-136.2 and
15 who, on or before February 16, 1995, brought administrative
16 proceedings pursuant to the administrative rules adopted by the
17 System to challenge the calculation of his or her retirement
18 annuity shall be the sum of the following, determined from
19 amounts credited to the participant in accordance with the
20 actuarial tables and the prescribed rate of interest in effect
21 at the time the retirement annuity begins:
22         (i) the normal annuity which can be provided on an
23     actuarially equivalent basis, by the accumulated normal
24     contributions as of the date the annuity begins; and
25         (ii) an annuity from employer contributions of an
26     amount equal to that which can be provided on an
27     actuarially equivalent basis from the accumulated normal
28     contributions made by the participant under Section
29     15-113.6 and Section 15-113.7 plus 1.4 times all other
30     accumulated normal contributions made by the participant;
31     and
32         (iii) an annuity which can be provided on an
33     actuarially equivalent basis from the employee
34     contribution for early retirement under Section 15-136.2,
35     and an annuity from employer contributions of an amount
36     equal to that which can be provided on an actuarially

 

 

HB4642 - 14 - LRB093 14988 LRD 40557 b

1     equivalent basis from the employee contribution for early
2     retirement under Section 15-136.2.
3     In no event shall a retirement annuity under this Rule 5 be
4 lower than the amount obtained by adding (1) the monthly amount
5 obtained by dividing the combined employee and employer
6 contributions made under Section 15-136.2 by the System's
7 annuity factor for the age of the participant at the beginning
8 of the annuity payment period and (2) the amount equal to the
9 participant's annuity if calculated under Rule 1, reduced under
10 Section 15-136(b) as if no contributions had been made under
11 Section 15-136.2.
12     With respect to a participant who is qualified for a
13 retirement annuity under this Rule 5 whose retirement annuity
14 began before the effective date of this amendatory Act of the
15 91st General Assembly, and for whom an employee contribution
16 was made under Section 15-136.2, the System shall recalculate
17 the retirement annuity under this Rule 5 and shall pay any
18 additional amounts due in the manner provided in Section
19 15-186.1 for benefits mistakenly set too low.
20     The amount of a retirement annuity calculated under this
21 Rule 5 shall be computed solely on the basis of those
22 contributions specifically set forth in this Rule 5. Except as
23 provided in clause (iii) of this Rule 5, neither an employee
24 nor employer contribution for early retirement under Section
25 15-136.2, nor any other employer contribution, shall be used in
26 the calculation of the amount of a retirement annuity under
27 this Rule 5.
28     The General Assembly has adopted the changes set forth in
29 Section 25 of this amendatory Act of the 91st General Assembly
30 in recognition that the decision of the Appellate Court for the
31 Fourth District in Mattis v. State Universities Retirement
32 System et al. might be deemed to give some right to the
33 plaintiff in that case. The changes made by Section 25 of this
34 amendatory Act of the 91st General Assembly are a legislative
35 implementation of the decision of the Appellate Court for the
36 Fourth District in Mattis v. State Universities Retirement

 

 

HB4642 - 15 - LRB093 14988 LRD 40557 b

1 System et al. with respect to that plaintiff.
2     The changes made by Section 25 of this amendatory Act of
3 the 91st General Assembly apply without regard to whether the
4 person is in service as an employee on or after its effective
5 date.
6     (b) The retirement annuity provided under Rules 1 and 3
7 above shall be reduced by 1/2 of 1% for each month the
8 participant is under age 60 at the time of retirement. However,
9 this reduction shall not apply in the following cases:
10         (1) For a disabled participant whose disability
11     benefits have been discontinued because he or she has
12     exhausted eligibility for disability benefits under clause
13     (6) of Section 15-152;
14         (2) For a participant who has at least the number of
15     years of service required to retire at any age under
16     subsection (a) of Section 15-135; or
17         (3) For that portion of a retirement annuity which has
18     been provided on account of service of the participant
19     during periods when he or she performed the duties of a
20     police officer or firefighter, if these duties were
21     performed for at least 5 years immediately preceding the
22     date the retirement annuity is to begin.
23     (c) The maximum retirement annuity provided under Rules 1,
24 2, 4, and 5 shall be the lesser of (1) the annual limit of
25 benefits as specified in Section 415 of the Internal Revenue
26 Code of 1986, as such Section may be amended from time to time
27 and as such benefit limits shall be adjusted by the
28 Commissioner of Internal Revenue, and (2) 80% of final rate of
29 earnings.
30     (d) An annuitant whose status as an employee terminates
31 after August 14, 1969 shall receive automatic increases in his
32 or her retirement annuity as follows:
33     Effective January 1 immediately following the date the
34 retirement annuity begins, the annuitant shall receive an
35 increase in his or her monthly retirement annuity of 0.125% of
36 the monthly retirement annuity provided under Rule 1, Rule 2,

 

 

HB4642 - 16 - LRB093 14988 LRD 40557 b

1 Rule 3, Rule 4, or Rule 5, contained in this Section,
2 multiplied by the number of full months which elapsed from the
3 date the retirement annuity payments began to January 1, 1972,
4 plus 0.1667% of such annuity, multiplied by the number of full
5 months which elapsed from January 1, 1972, or the date the
6 retirement annuity payments began, whichever is later, to
7 January 1, 1978, plus 0.25% of such annuity multiplied by the
8 number of full months which elapsed from January 1, 1978, or
9 the date the retirement annuity payments began, whichever is
10 later, to the effective date of the increase.
11     The annuitant shall receive an increase in his or her
12 monthly retirement annuity on each January 1 thereafter during
13 the annuitant's life of 3% of the monthly annuity provided
14 under Rule 1, Rule 2, Rule 3, Rule 4, or Rule 5 contained in
15 this Section. The change made under this subsection by P.A.
16 81-970 is effective January 1, 1980 and applies to each
17 annuitant whose status as an employee terminates before or
18 after that date.
19     Beginning January 1, 1990, all automatic annual increases
20 payable under this Section shall be calculated as a percentage
21 of the total annuity payable at the time of the increase,
22 including all increases previously granted under this Article.
23     The change made in this subsection by P.A. 85-1008 is
24 effective January 26, 1988, and is applicable without regard to
25 whether status as an employee terminated before that date.
26     (e) If, on January 1, 1987, or the date the retirement
27 annuity payment period begins, whichever is later, the sum of
28 the retirement annuity provided under Rule 1 or Rule 2 of this
29 Section and the automatic annual increases provided under the
30 preceding subsection or Section 15-136.1, amounts to less than
31 the retirement annuity which would be provided by Rule 3, the
32 retirement annuity shall be increased as of January 1, 1987, or
33 the date the retirement annuity payment period begins,
34 whichever is later, to the amount which would be provided by
35 Rule 3 of this Section. Such increased amount shall be
36 considered as the retirement annuity in determining benefits

 

 

HB4642 - 17 - LRB093 14988 LRD 40557 b

1 provided under other Sections of this Article. This paragraph
2 applies without regard to whether status as an employee
3 terminated before the effective date of this amendatory Act of
4 1987, provided that the annuitant was employed at least
5 one-half time during the period on which the final rate of
6 earnings was based.
7     (f) A participant is entitled to such additional annuity as
8 may be provided on an actuarially equivalent basis, by any
9 accumulated additional contributions to his or her credit.
10 However, the additional contributions made by the participant
11 toward the automatic increases in annuity provided under this
12 Section shall not be taken into account in determining the
13 amount of such additional annuity.
14     (g) If, (1) by law, a function of a governmental unit, as
15 defined by Section 20-107 of this Code, is transferred in whole
16 or in part to an employer, and (2) a participant transfers
17 employment from such governmental unit to such employer within
18 6 months after the transfer of the function, and (3) the sum of
19 (A) the annuity payable to the participant under Rule 1, 2, or
20 3 of this Section (B) all proportional annuities payable to the
21 participant by all other retirement systems covered by Article
22 20, and (C) the initial primary insurance amount to which the
23 participant is entitled under the Social Security Act, is less
24 than the retirement annuity which would have been payable if
25 all of the participant's pension credits validated under
26 Section 20-109 had been validated under this system, a
27 supplemental annuity equal to the difference in such amounts
28 shall be payable to the participant.
29     (h) On January 1, 1981, an annuitant who was receiving a
30 retirement annuity on or before January 1, 1971 shall have his
31 or her retirement annuity then being paid increased $1 per
32 month for each year of creditable service. On January 1, 1982,
33 an annuitant whose retirement annuity began on or before
34 January 1, 1977, shall have his or her retirement annuity then
35 being paid increased $1 per month for each year of creditable
36 service.

 

 

HB4642 - 18 - LRB093 14988 LRD 40557 b

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, 2005, every annuitant who began receiving
7 a retirement annuity on or before January 1, 1991 shall have
8 the monthly retirement annuity increased by an amount equal to
9 25¢ multiplied by the number of full years of creditable
10 service multiplied by the number of full years that have
11 elapsed since the annuity began. Every annuitant who begins
12 receiving a retirement annuity after January 1, 1991 and before
13 January 1, 1998 shall have the monthly retirement annuity
14 increased on January 1, 2005 or on the January 1 occurring on
15 or next following the seventh anniversary of retirement,
16 whichever is later, by an amount equal to $1.75 multiplied by
17 the number of full years of creditable service upon which the
18 retirement annuity is based. The increase under this subsection
19 shall be included in the calculation of increases granted
20 simultaneously or thereafter under subsection (d).
21 (Source: P.A. 92-16, eff. 6-28-01; 93-347, eff. 7-24-03.)
 
22     (40 ILCS 5/15-136.3)
23     Sec. 15-136.3. Minimum retirement annuity.
24     (a) Beginning January 1, 1997, any person who is receiving
25 a monthly retirement annuity under this Article which, after
26 inclusion of (1) all one-time and automatic annual increases to
27 which the person is entitled, (2) any supplemental annuity
28 payable under Section 15-136.1, and (3) any amount deducted
29 under Section 15-138 or 15-140 to provide a reversionary
30 annuity, is less than the minimum monthly retirement benefit
31 amount specified in subsection (b) of this Section, shall be
32 entitled to a monthly supplemental payment equal to the
33 difference.
34     (b) For purposes of the calculation in subsection (a), the
35 minimum monthly retirement benefit amount is the sum of $25 for

 

 

HB4642 - 19 - LRB093 14988 LRD 40557 b

1 each year of service credit, up to a maximum of 30 years of
2 service, plus the amount of the increase received by the
3 annuitant under subsection (j) of Section 15-136, if any.
4     (c) This Section applies to all persons receiving a
5 retirement annuity under this Article, without regard to
6 whether or not employment terminated prior to the effective
7 date of this Section.
8 (Source: P.A. 89-616, eff. 8-9-96.)
 
9     (40 ILCS 5/15-145)  (from Ch. 108 1/2, par. 15-145)
10     Sec. 15-145. Survivors insurance benefits; conditions and
11 amounts.
12     (a) The survivors insurance benefits provided under this
13 Section shall be payable to the eligible survivors of a
14 participant covered under the traditional benefit package upon
15 the death of (1) a participating employee with at least 1 1/2
16 years of service, (2) a participant who terminated employment
17 with at least 10 years of service, and (3) an annuitant in
18 receipt of a retirement annuity or disability retirement
19 annuity under this Article.
20     Service under the State Employees' Retirement System of
21 Illinois, the Teachers' Retirement System of the State of
22 Illinois and the Public School Teachers' Pension and Retirement
23 Fund of Chicago shall be considered in determining eligibility
24 for survivors benefits under this Section.
25     If by law, a function of a governmental unit, as defined by
26 Section 20-107, is transferred in whole or in part to an
27 employer, and an employee transfers employment from this
28 governmental unit to such employer within 6 months after the
29 transfer of this function, the service credits in the
30 governmental unit's retirement system which have been
31 validated under Section 20-109 shall be considered in
32 determining eligibility for survivors benefits under this
33 Section.
34     (b) A surviving spouse of a deceased participant, or of a
35 deceased annuitant who did not take a refund or additional

 

 

HB4642 - 20 - LRB093 14988 LRD 40557 b

1 annuity consisting of accumulated survivors insurance
2 contributions, shall receive a survivors annuity of 30% of the
3 final rate of earnings. Payments shall begin on the day
4 following the participant's or annuitant's death or the date
5 the surviving spouse attains age 50, whichever is later, and
6 continue until the death of the surviving spouse. The annuity
7 shall be payable to the surviving spouse prior to attainment of
8 age 50 if the surviving spouse has in his or her care a
9 deceased participant's or annuitant's dependent unmarried
10 child under age 18 (under age 22 if a full-time student) who is
11 eligible for a survivors annuity.
12     Remarriage of a surviving spouse prior to attainment of age
13 55 that occurs before the effective date of this amendatory Act
14 of the 91st General Assembly shall disqualify him or her for
15 the receipt of a survivors annuity until July 6, 2000.
16     A surviving spouse whose survivors annuity has been
17 terminated due to remarriage may apply for reinstatement of
18 that annuity. The reinstated annuity shall begin to accrue on
19 July 6, 2000, except that if, on July 6, 2000, the annuity is
20 payable to an eligible surviving child or parent, payment of
21 the annuity to the surviving spouse shall not be reinstated
22 until the annuity is no longer payable to any eligible
23 surviving child or parent. The reinstated annuity shall include
24 any one-time or annual increases received prior to the date of
25 termination, as well as any increases that would otherwise have
26 accrued from the date of termination to the date of
27 reinstatement. An eligible surviving spouse whose expectation
28 of receiving a survivors annuity was lost due to remarriage
29 before attainment of age 50 shall also be entitled to
30 reinstatement under this subsection, but the resulting
31 survivors annuity shall not begin to accrue sooner than upon
32 the surviving spouse's attainment of age 50.
33     The changes made to this subsection by this amendatory Act
34 of the 92nd General Assembly (pertaining to remarriage prior to
35 age 55 or 50) apply without regard to whether the deceased
36 participant or annuitant was in service on or after the

 

 

HB4642 - 21 - LRB093 14988 LRD 40557 b

1 effective date of this amendatory Act.
2     (c) Each dependent unmarried child under age 18 (under age
3 22 if a full-time student) of a deceased participant, or of a
4 deceased annuitant who did not take a refund or additional
5 annuity consisting of accumulated survivors insurance
6 contributions, shall receive a survivors annuity equal to the
7 sum of (1) 20% of the final rate of earnings, and (2) 10% of the
8 final rate of earnings divided by the number of children
9 entitled to this benefit. Payments shall begin on the day
10 following the participant's or annuitant's death and continue
11 until the child marries, dies, or attains age 18 (age 22 if a
12 full-time student). If the child is in the care of a surviving
13 spouse who is eligible for survivors insurance benefits, the
14 child's benefit shall be paid to the surviving spouse.
15     Each unmarried child over age 18 of a deceased participant
16 or of a deceased annuitant who had a survivor's insurance
17 beneficiary at the time of his or her retirement, and who was
18 dependent upon the participant or annuitant by reason of a
19 physical or mental disability which began prior to the date the
20 child attained age 18 (age 22 if a full-time student), shall
21 receive a survivor's annuity equal to the sum of (1) 20% of the
22 final rate of earnings, and (2) 10% of the final rate of
23 earnings divided by the number of children entitled to
24 survivors benefits. Payments shall begin on the day following
25 the participant's or annuitant's death and continue until the
26 child marries, dies, or is no longer disabled. If the child is
27 in the care of a surviving spouse who is eligible for survivors
28 insurance benefits, the child's benefit may be paid to the
29 surviving spouse. For the purposes of this Section, disability
30 means inability to engage in any substantial gainful activity
31 by reason of any medically determinable physical or mental
32 impairment that can be expected to result in death or that has
33 lasted or can be expected to last for a continuous period of at
34 least one year.
35     (d) Each dependent parent of a deceased participant, or of
36 a deceased annuitant who did not take a refund or additional

 

 

HB4642 - 22 - LRB093 14988 LRD 40557 b

1 annuity consisting of accumulated survivors insurance
2 contributions, shall receive a survivors annuity equal to the
3 sum of (1) 20% of final rate of earnings, and (2) 10% of final
4 rate of earnings divided by the number of parents who qualify
5 for the benefit. Payments shall begin when the parent reaches
6 age 55 or the day following the participant's or annuitant's
7 death, whichever is later, and continue until the parent dies.
8 Remarriage of a parent prior to attainment of age 55 shall
9 disqualify the parent for the receipt of a survivors annuity.
10     (e) In addition to the survivors annuity provided above,
11 each survivors insurance beneficiary shall, upon death of the
12 participant or annuitant, receive a lump sum payment of $1,000
13 divided by the number of such beneficiaries.
14     (f) The changes made in this Section by Public Act 81-712
15 pertaining to survivors annuities in cases of remarriage prior
16 to age 55 shall apply to each survivors insurance beneficiary
17 who remarries after June 30, 1979, regardless of the date that
18 the participant or annuitant terminated his employment or died.
19     The change made to this Section by this amendatory Act of
20 the 91st General Assembly, pertaining to remarriage prior to
21 age 55, applies without regard to whether the deceased
22 participant or annuitant was in service on or after the
23 effective date of this amendatory Act of the 91st General
24 Assembly.
25     (g) On January 1, 1981, any person who was receiving a
26 survivors annuity on or before January 1, 1971 shall have the
27 survivors annuity then being paid increased by 1% for each full
28 year which has elapsed from the date the annuity began. On
29 January 1, 1982, any survivor whose annuity began after January
30 1, 1971, but before January 1, 1981, shall have the survivor's
31 annuity then being paid increased by 1% for each year which has
32 elapsed from the date the survivor's annuity began. On January
33 1, 1987, any survivor who began receiving a survivor's annuity
34 on or before January 1, 1977, shall have the monthly survivor's
35 annuity increased by $1 for each full year which has elapsed
36 since the date the survivor's annuity began.

 

 

HB4642 - 23 - LRB093 14988 LRD 40557 b

1     (g-1) On January 1, 2005, every survivor who began
2 receiving a survivor's annuity on or before January 1, 1991
3 shall have the monthly survivor's annuity increased by an
4 amount equal to 25¢ multiplied by the number of full years of
5 the deceased's creditable service multiplied by the sum of (i)
6 the number of full years that have elapsed since the survivor's
7 annuity began and (ii) the number of full years, if any, during
8 which the deceased received a retirement annuity under this
9 Article. Every survivor who begins receiving a survivor's
10 annuity after January 1, 1991 and before January 1, 2005 shall
11 have the monthly survivor's annuity increased on January 1,
12 2005 or on the January 1 occurring on or next following the
13 seventh anniversary of the commencement of the survivor's
14 annuity, whichever is later, by an amount equal to 25¢
15 multiplied by the number of full years of the deceased's
16 creditable service multiplied by the sum of (i) the number of
17 full years that have elapsed since the survivor's annuity began
18 and (ii) the number of full years, if any, during which the
19 deceased received a retirement annuity under this Article. The
20 increase under this subsection shall be included in the
21 calculation of increases granted simultaneously or thereafter
22 under subsection (j).
23     (h) If the sum of the lump sum and total monthly survivor
24 benefits payable under this Section upon the death of a
25 participant amounts to less than the sum of the death benefits
26 payable under items (2) and (3) of Section 15-141, the
27 difference shall be paid in a lump sum to the beneficiary of
28 the participant who is living on the date that this additional
29 amount becomes payable.
30     (i) If the sum of the lump sum and total monthly survivor
31 benefits payable under this Section upon the death of an
32 annuitant receiving a retirement annuity or disability
33 retirement annuity amounts to less than the death benefit
34 payable under Section 15-142, the difference shall be paid to
35 the beneficiary of the annuitant who is living on the date that
36 this additional amount becomes payable.

 

 

HB4642 - 24 - LRB093 14988 LRD 40557 b

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 survivor
3 annuity begins, if the deceased member died while receiving a
4 retirement annuity, or in all other cases the January 1 nearest
5 the first anniversary of the date the survivor annuity payments
6 begin, every survivors insurance beneficiary shall receive an
7 increase in his or her monthly survivors annuity of 3%. On each
8 January 1 after the initial increase, the monthly survivors
9 annuity shall be increased by 3% of the total survivors annuity
10 provided under this Article, including previous increases
11 provided by this subsection. Such increases shall apply to the
12 survivors insurance beneficiaries of each participant and
13 annuitant, whether or not the employment status of the
14 participant or annuitant terminates before the effective date
15 of this amendatory Act of 1990. This subsection (j) also
16 applies to persons receiving a survivor annuity under the
17 portable benefit package.
18     (k) If the Internal Revenue Code of 1986, as amended,
19 requires that the survivors benefits be payable at an age
20 earlier than that specified in this Section the benefits shall
21 begin at the earlier age, in which event, the survivor's
22 beneficiary shall be entitled only to that amount which is
23 equal to the actuarial equivalent of the benefits provided by
24 this Section.
25     (l) The changes made to this Section and Section 15-131 by
26 this amendatory Act of 1997, relating to benefits for certain
27 unmarried children who are full-time students under age 22,
28 apply without regard to whether the deceased member was in
29 service on or after the effective date of this amendatory Act
30 of 1997. These changes do not authorize the repayment of a
31 refund or a re-election of benefits, and any benefit or
32 increase in benefits resulting from these changes is not
33 payable retroactively for any period before the effective date
34 of this amendatory Act of 1997.
35 (Source: P.A. 91-887, eff. 7-6-00; 92-749, eff. 8-2-02.)
 

 

 

HB4642 - 25 - LRB093 14988 LRD 40557 b

1     (40 ILCS 5/16-133.1)  (from Ch. 108 1/2, par. 16-133.1)
2     Sec. 16-133.1. Automatic annual increase in annuity.
3     (a) Each member with creditable service and retiring on or
4 after August 26, 1969 is entitled to the automatic annual
5 increases in annuity provided under this Section while
6 receiving a retirement annuity or disability retirement
7 annuity from the system.
8     An annuitant shall first be entitled to an initial increase
9 under this Section on the January 1 next following the first
10 anniversary of retirement, or January 1 of the year next
11 following attainment of age 61, whichever is later. At such
12 time, the system shall pay an initial increase determined as
13 follows:
14         (1) 1.5% of the originally granted retirement annuity
15     or disability retirement annuity multiplied by the number
16     of years elapsed, if any, from the date of retirement until
17     January 1, 1972, plus
18         (2) 2% of the originally granted annuity multiplied by
19     the number of years elapsed, if any, from the date of
20     retirement or January 1, 1972, whichever is later, until
21     January 1, 1978, plus
22         (3) 3% of the originally granted annuity multiplied by
23     the number of years elapsed from the date of retirement or
24     January 1, 1978, whichever is later, until the effective
25     date of the initial increase.
26 However, the initial annual increase calculated under this
27 Section for the recipient of a disability retirement annuity
28 granted under Section 16-149.2 shall be reduced by an amount
29 equal to the total of all increases in that annuity received
30 under Section 16-149.5 (but not exceeding 100% of the amount of
31 the initial increase otherwise provided under this Section).
32     Following the initial increase, automatic annual increases
33 in annuity shall be payable on each January 1 thereafter during
34 the lifetime of the annuitant, determined as a percentage of
35 the originally granted retirement annuity or disability
36 retirement annuity for increases granted prior to January 1,

 

 

HB4642 - 26 - LRB093 14988 LRD 40557 b

1 1990, and calculated as a percentage of the total amount of
2 annuity, including previous increases under this Section, for
3 increases granted on or after January 1, 1990, as follows: 1.5%
4 for periods prior to January 1, 1972, 2% for periods after
5 December 31, 1971 and prior to January 1, 1978, and 3% for
6 periods after December 31, 1977.
7     (b) The automatic annual increases in annuity provided
8 under this Section shall not be applicable unless a member has
9 made contributions toward such increases for a period
10 equivalent to one full year of creditable service. If a member
11 contributes for service performed after August 26, 1969 but the
12 member becomes an annuitant before such contributions amount to
13 one full year's contributions based on the salary at the date
14 of retirement, he or she may pay the necessary balance of the
15 contributions to the system and be eligible for the automatic
16 annual increases in annuity provided under this Section.
17     (c) Each member shall make contributions toward the cost of
18 the automatic annual increases in annuity as provided under
19 Section 16-152.
20     (d) An annuitant receiving a retirement annuity or
21 disability retirement annuity on July 1, 1969, who subsequently
22 re-enters service as a teacher is eligible for the automatic
23 annual increases in annuity provided under this Section if he
24 or she renders at least one year of creditable service
25 following the latest re-entry.
26     (e) In addition to the automatic annual increases in
27 annuity provided under this Section, an annuitant who meets the
28 service requirements of this Section and whose retirement
29 annuity or disability retirement annuity began on or before
30 January 1, 1971 shall receive, on January 1, 1981, an increase
31 in the annuity then being paid of one dollar per month for each
32 year of creditable service. On January 1, 1982, an annuitant
33 whose retirement annuity or disability retirement annuity
34 began on or before January 1, 1977 shall receive an increase in
35 the annuity then being paid of one dollar per month for each
36 year of creditable service.

 

 

HB4642 - 27 - LRB093 14988 LRD 40557 b

1     On January 1, 1987, any annuitant whose retirement annuity
2 began on or before January 1, 1977, shall receive an increase
3 in the monthly retirement annuity equal to 8¢ per year of
4 creditable service times the number of years that have elapsed
5 since the annuity began.
6     (f) On January 1, 2005, every annuitant who began receiving
7 a retirement annuity on or before January 1, 1991 shall have
8 the monthly retirement annuity increased by an amount equal to
9 25¢ multiplied by the number of full years of creditable
10 service multiplied by the number of full years that have
11 elapsed since the annuity began. Every annuitant who begins
12 receiving a retirement annuity after January 1, 1991 and before
13 July 1, 1998 shall have the monthly retirement annuity
14 increased on January 1, 2005 or on the January 1 occurring on
15 or next following the seventh anniversary of retirement,
16 whichever is later, by an amount equal to $1.75 multiplied by
17 the number of full years of creditable service upon which the
18 retirement annuity is based. The increase under this subsection
19 shall be included in the calculation of increases granted
20 simultaneously or thereafter under subsection (a).
21 (Source: P.A. 91-927, eff. 12-14-00.)
 
22     (40 ILCS 5/16-143.1)  (from Ch. 108 1/2, par. 16-143.1)
23     Sec. 16-143.1. Increase in survivor benefits.
24     (a) Beginning January 1, 1990, each survivor's benefit and
25 each reversionary annuity payable under Section 16-136 shall be
26 increased by 3% of the currently payable amount thereof (1) on
27 each January 1 occurring on or after the commencement of the
28 annuity if the deceased teacher died while receiving a
29 retirement or disability retirement annuity, or (2) in other
30 cases, on each January 1 occurring on or after the first
31 anniversary of the granting of the benefit, without regard to
32 whether the deceased teacher was in service on or after the
33 effective date of this amendatory Act of 1991, but such
34 increases shall not accrue for any period prior to January 1,
35 1990.

 

 

HB4642 - 28 - LRB093 14988 LRD 40557 b

1     (b) On January 1, 1981, any beneficiary who was receiving a
2 survivor's monthly benefit on or before January 1, 1971, shall
3 have the benefit then being paid increased by 1% for each full
4 year elapsed from the date the survivor's benefit began. On
5 January 1, 1982, any beneficiary who began receiving a
6 survivor's monthly benefit after January 1, 1971, but before
7 January 1, 1981 shall have the benefit then being paid
8 increased by 1% for each year elapsed from the date the
9 survivor's benefit began.
10     On January 1, 1987, any beneficiary whose monthly
11 survivor's benefit began on or before January 1, 1977, shall
12 have the monthly survivor's benefit increased by $1 for each
13 full year which has elapsed since the date the survivor's
14 benefit began.
15     (c) On January 1, 2005, every survivor who began receiving
16 a survivor's benefit on or before January 1, 1991 shall have
17 the monthly survivor's benefit increased by an amount equal to
18 25¢ multiplied by the number of full years of the deceased's
19 creditable service multiplied by the sum of (i) the number of
20 full years that have elapsed since the survivor's benefit began
21 and (ii) the number of full years, if any, during which the
22 deceased received a retirement annuity under this Article.
23 Every survivor who begins receiving a survivor's benefit after
24 January 1, 1991 and before January 1, 2005 shall have the
25 monthly survivor's benefit increased on January 1, 2005 or on
26 the January 1 occurring on or next following the seventh
27 anniversary of the commencement of the survivor's benefit,
28 whichever is later, by an amount equal to 25¢ multiplied by the
29 number of full years of the deceased's creditable service
30 multiplied by the sum of (i) the number of full years that have
31 elapsed since the survivor's benefit began and (ii) the number
32 of full years, if any, during which the deceased received a
33 retirement annuity under this Article. The increase under this
34 subsection shall be included in the calculation of increases
35 granted simultaneously or thereafter under subsection (a).
36 (Source: P.A. 86-273; 86-1488.)
 

 

 

HB4642 - 29 - LRB093 14988 LRD 40557 b

1     (40 ILCS 5/17-119)  (from Ch. 108 1/2, par. 17-119)
2     Sec. 17-119. Automatic annual increase in pension.
3     (a) Each teacher retiring on or after September 1, 1959, is
4 entitled to the annual increase in pension, defined herein,
5 while he is receiving a pension from the Fund.
6         1. The term "base pension" means a service retirement
7     or disability retirement pension in the amount fixed and
8     payable at the date of retirement of a teacher.
9         2. The annual increase in pension shall be at the rate
10     of 1 1/2% of base pension. This increase shall first occur
11     in January of the year next following the first anniversary
12     of retirement. At such time the Fund shall pay the pro rata
13     part of the increase for the period from the first
14     anniversary date to the date of the first increase in
15     pension. Beginning January 1, 1972, the rate of annual
16     increase in pension shall be 2% of the base pension.
17     Beginning January 1, 1979, the rate of annual increase in
18     pension shall be 3% of the base pension. Beginning January
19     1, 1990, all automatic annual increases payable under this
20     Section shall be calculated as a percentage of the total
21     pension payable at the time of the increase, including all
22     increases previously granted under this Article,
23     notwithstanding Section 17-157.
24         3. An increase in pension shall be granted only if the
25     retired teacher is age 60 or over. If the teacher attains
26     age 60 after retirement, the increase in pension shall
27     begin in January of the year following the 61st birthday.
28     At such time the Fund also shall pay the pro rata part of
29     the increase from the 61st birthday to the date of first
30     increase in pension.
31     (b) In addition to other increases which may be provided by
32 this Section, on January 1, 1981 any teacher who was receiving
33 a retirement pension on or before January 1, 1971 shall have
34 his retirement pension then being paid increased $1 per month
35 for each year of creditable service. On January 1, 1982, any

 

 

HB4642 - 30 - LRB093 14988 LRD 40557 b

1 teacher whose retirement pension began on or before January 1,
2 1977, shall have his retirement pension then being paid
3 increased $1 per month for each year of creditable service.
4     On January 1, 1987, any teacher whose retirement pension
5 began on or before January 1, 1977, shall have the monthly
6 retirement pension increased by an amount equal to 8¢ per year
7 of creditable service times the number of years that have
8 elapsed since the retirement pension began.
9     (c) On January 1, 2005, every pensioner who began receiving
10 a retirement pension on or before January 1, 1991 shall have
11 the monthly retirement pension increased by an amount equal to
12 25¢ multiplied by the number of full years of creditable
13 service multiplied by the number of full years that have
14 elapsed since the pension began. Every pensioner who begins
15 receiving a retirement pension after January 1, 1991 and before
16 July 1, 1998 shall have the monthly retirement pension
17 increased on January 1, 2005 or on the January 1 occurring on
18 or next following the seventh anniversary of retirement,
19 whichever is later, by an amount equal to $1.75 multiplied by
20 the number of full years of creditable service upon which the
21 retirement pension is based. The increase under this subsection
22 shall be included in the calculation of increases granted
23 simultaneously or thereafter under subsection (a). Section
24 17-157 does not apply to the increase provided under this
25 subsection.
26 (Source: P.A. 90-566, eff. 1-2-98.)
 
27     (40 ILCS 5/17-122)  (from Ch. 108 1/2, par. 17-122)
28     Sec. 17-122. Survivor's and children's pensions - Amount.
29     (a) Upon the death of a teacher who has completed at least
30 1 1/2 years of contributing service with either this Fund or
31 the State Universities Retirement System or the Teachers'
32 Retirement System of the State of Illinois, provided his death
33 occurred while (a) in active service covered by the Fund or
34 during his first 18 months of continuous employment without a
35 break in service under any other participating system as

 

 

HB4642 - 31 - LRB093 14988 LRD 40557 b

1 defined in the Illinois Retirement Systems Reciprocal Act
2 except the State Universities Retirement System and the
3 Teachers' Retirement System of the State of Illinois, (b) on a
4 creditable leave of absence, (c) on a noncreditable leave of
5 absence of no more than one year, or (d) a pension was deferred
6 or pending provided the teacher had at least 10 years of
7 validated service credit, or upon the death of a pensioner
8 otherwise qualified for such benefit, the surviving spouse and
9 unmarried minor children of the deceased teacher under age 18
10 shall be entitled to pensions, under the conditions stated
11 hereinafter. Such survivor's and children's pensions shall be
12 based on the average of the 4 highest consecutive years of
13 salary in the last 10 years of service or on the average salary
14 for total service, if total service has been less than 4 years,
15 according to the following percentages:
16         30% of average salary or 50% of the retirement pension
17     earned by the teacher, whichever is larger, subject to the
18     prescribed maximum monthly payment, for a surviving spouse
19     alone on attainment of age 50;
20         60% of average salary for a surviving spouse and
21     eligible minor children of the deceased teacher.
22     If no eligible spouse survives, or the surviving spouse
23 remarries, or the parent of the children of the deceased member
24 is otherwise ineligible for a survivor's pension, a children's
25 pension for eligible minor children under age 18 shall be paid
26 to their parent or legal guardian for their benefit according
27 to the following percentages:
28         30% of average salary for one child;
29         60% of average salary for 2 or more children.
30     (b) On January 1, 1981, any survivor or child who was
31 receiving a survivor's or children's pension on or before
32 January 1, 1971, shall have his survivor's or children's
33 pension then being paid increased by 1% for each full year
34 which has elapsed from the date the pension began. On January
35 1, 1982, any survivor or child whose pension began after
36 January 1, 1971, but before January 1, 1981, shall have his

 

 

HB4642 - 32 - LRB093 14988 LRD 40557 b

1 survivor's or children's pension then being paid increased 1%
2 for each full year which has elapsed from the date the pension
3 began. On January 1, 1987, any survivor or child whose pension
4 began on or before January 1, 1977, shall have the monthly
5 survivor's or children's pension increased by $1 for each full
6 year which has elapsed since the pension began.
7     (c) On January 1, 2005, every survivor or child who began
8 receiving a survivor's or children's pension on or before
9 January 1, 1991 shall have the monthly pension increased by an
10 amount equal to 25¢ multiplied by the number of full years of
11 the deceased's creditable service multiplied by the sum of (i)
12 the number of full years that have elapsed since the survivor's
13 or children's pension began and (ii) the number of full years,
14 if any, during which the deceased received a retirement pension
15 under this Article. Every survivor or child who begins
16 receiving a survivor's or children's pension after January 1,
17 1991 and before January 1, 2005 shall have the monthly pension
18 increased on January 1, 2005 or on the January 1 occurring on
19 or next following the seventh anniversary of the commencement
20 of the pension, whichever is later, by an amount equal to 25¢
21 multiplied by the number of full years of the deceased's
22 creditable service multiplied by the sum of (i) the number of
23 full years that have elapsed since the survivor's annuity began
24 and (ii) the number of full years, if any, during which the
25 deceased received a retirement pension under this Article. The
26 increase under this subsection shall be included in the
27 calculation of increases granted simultaneously or thereafter
28 under subsection (d). Section 17-157 does not apply to the
29 increase provided under this subsection.
30     (d) Beginning January 1, 1990, every survivor's and
31 children's pension shall be increased (1) on each January 1
32 occurring on or after the commencement of the pension if the
33 deceased teacher died while receiving a retirement pension, or
34 (2) in other cases, on each January 1 occurring on or after the
35 first anniversary of the commencement of the pension, by an
36 amount equal to 3% of the current amount of the pension,

 

 

HB4642 - 33 - LRB093 14988 LRD 40557 b

1 including all increases previously granted under this Article,
2 notwithstanding Section 17-157. Such increases shall apply
3 without regard to whether the deceased teacher was in service
4 on or after the effective date of this amendatory Act of 1991,
5 but shall not accrue for any period prior to January 1, 1990.
6     (e) Subject to the minimum established below, the maximum
7 amount of pension for a surviving spouse alone or one minor
8 child shall be $400 per month, and the maximum combined
9 pensions for a surviving spouse and children of the deceased
10 teacher shall be $600 per month, with individual pensions
11 adjusted for all beneficiaries pro rata to conform with this
12 limitation. If proration is unnecessary the minimum survivor's
13 and children's pensions shall be $40 per month. The minimum
14 total survivor's and children's pension payable upon the death
15 of a contributor or annuitant which occurs after December 31,
16 1986, shall be 50% of the earned retirement pension of such
17 contributor or annuitant, calculated without early retirement
18 discount in the case of death in service.
19     On death after retirement, the total survivor's and
20 children's pensions shall not exceed the monthly retirement or
21 disability pension paid to the deceased retirant. Survivor's
22 and children's benefits described in this Section shall apply
23 to all service and disability pensioners eligible for a pension
24 as of July 1, 1981.
25 (Source: P.A. 90-32, eff. 6-27-97; 90-566, eff. 1-2-98.)
 
26     Section 90. The State Mandates Act is amended by adding
27 Section 8.28 as follows:
 
28     (30 ILCS 805/8.28 new)
29     Sec. 8.28. Exempt mandate. Notwithstanding Sections 6 and 8
30 of this Act, no reimbursement by the State is required for the
31 implementation of any mandate created by this amendatory Act of
32 the 93rd General Assembly.
 
33     Section 99. Effective date. This Act takes effect upon

 

 

HB4642 - 34 - LRB093 14988 LRD 40557 b

1 becoming law.