093_SB0014sam003

 










                                     LRB093 03003 EFG 14355 a

 1                     AMENDMENT TO SENATE BILL 14

 2        AMENDMENT NO.     .  Amend Senate Bill  14  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.   The  Illinois  Pension  Code is amended by
 5    changing Sections 2-119.1 and  2-126 as follows:

 6        (40 ILCS 5/2-119.1) (from Ch. 108 1/2, par. 2-119.1)
 7        Sec. 2-119.1.  Automatic increase in retirement annuity.
 8        (a)  A participant who retires after June 30,  1967,  and
 9    who  has  not received an initial increase under this Section
10    before the effective date of this  amendatory  Act  of  1991,
11    shall,   in   January   or  July  next  following  the  first
12    anniversary of retirement, whichever occurs first, and in the
13    same month of each year thereafter, but in no event prior  to
14    age  60, have the amount of the originally granted retirement
15    annuity increased as follows:  for each year through 1971,  1
16    1/2%;  for each year from 1972 through 1979, 2%; and for 1980
17    and each year thereafter, 3%.  Annuitants who  have  received
18    an  initial  increase  under  this  subsection  prior  to the
19    effective date of this amendatory Act of 1991 shall  continue
20    to  receive  their  annual increases in the same month as the
21    initial increase.
22        (b)  Beginning January 1, 1990, for eligible participants
 
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 1    who remain in service after attaining 20 years of  creditable
 2    service  and  have  not  elected to limit contributions under
 3    Section 2-126(e), the 3% increases provided under  subsection
 4    (a) shall begin to accrue on the January 1 next following the
 5    date  upon  which  the participant (1) attains age 55, or (2)
 6    attains 20 years  of  creditable  service,  whichever  occurs
 7    later,  and  shall  continue  to accrue while the participant
 8    remains in service; such increases shall  become  payable  on
 9    January  1  or July 1, whichever occurs first, next following
10    the first anniversary of retirement.  For any person who  has
11    service  credit  in  the  System  for  the entire period from
12    January 15, 1969 through December 31, 1992, regardless of the
13    date of termination of service, the reference to  age  55  in
14    clause (1) of this subsection (b) shall be deemed to mean age
15    50.
16        This  subsection  (b)  does  not  apply to any person who
17    first becomes a member of the System after the effective date
18    of this amendatory Act of the 93rd General Assembly.
19        (c)  The  foregoing  provisions  relating  to   automatic
20    increases  are  not  applicable  to a participant who retires
21    before having made contributions (at the rate  prescribed  in
22    Section  2-126)  for  automatic  increases  for less than the
23    equivalent of  one  full  year.   However,  in  order  to  be
24    eligible  for the automatic increases, such a participant may
25    make arrangements to pay to the system the amount required to
26    bring the total contributions for the automatic  increase  to
27    the  equivalent of one year's contributions based upon his or
28    her last salary.
29        (d)  A participant who terminated service prior  to  July
30    1,  1967, with at least 14 years of service is entitled to an
31    increase in retirement annuity beginning January,  1976,  and
32    to additional increases in January of each year thereafter.
33        The  initial  increase  shall be 1 1/2% of the originally
34    granted retirement annuity multiplied by the number  of  full
 
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 1    years  that  the   annuitant  was  in receipt of such annuity
 2    prior to January 1, 1972, plus 2% of the  originally  granted
 3    retirement  annuity  for  each  year  after  that  date.  The
 4    subsequent annual increases shall be at the rate of 2% of the
 5    originally granted retirement annuity for each  year  through
 6    1979 and at the rate of 3% for 1980 and thereafter.
 7        (e)  Beginning  January  1,  1990,  all  automatic annual
 8    increases payable under this Section shall be calculated as a
 9    percentage of the total annuity payable at the  time  of  the
10    increase,  including  previous  increases  granted under this
11    Article.
12    (Source: P.A. 86-273; 87-794; 87-1265.)

13        (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
14        Sec. 2-126.  Contributions by participants.
15        (a)  Each participant shall contribute toward the cost of
16    his or her retirement annuity a percentage of each payment of
17    salary received by him or her for  service  as  a  member  as
18    follows:  for service between October 31, 1947 and January 1,
19    1959,  5%;  for  service between January 1, 1959 and June 30,
20    1969, 6%; for service between July 1, 1969  and  January  10,
21    1973,  6  1/2%;  for  service after January 10, 1973, 7%; for
22    service after December 31, 1981, 8 1/2%.
23        (b)  Beginning August 2, 1949, each male participant, and
24    from July 1, 1971, each female participant  shall  contribute
25    towards the cost of the survivor's annuity 2% of salary.
26        A  participant  who  has  no  eligible survivor's annuity
27    beneficiary may  elect  to  cease  making  contributions  for
28    survivor's  annuity  under  this  subsection.    A survivor's
29    annuity shall not be payable upon the death of a  person  who
30    has  made  this  election,  unless  prior  to  that death the
31    election has been revoked and the amount of the contributions
32    that would have  been  paid  under  this  subsection  in  the
33    absence  of the election is paid to the System, together with
 
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 1    interest at the rate  of  4%  per  year  from  the  date  the
 2    contributions would have been made to the date of payment.
 3        (c)  Beginning  July  1,  1967,  each  participant  shall
 4    contribute  1%  of  salary  towards  the  cost  of  automatic
 5    increase  in  annuity  provided  in  Section  2-119.1.  These
 6    contributions shall be made concurrently  with  contributions
 7    for retirement annuity purposes.
 8        (d)  In  addition, each participant serving as an officer
 9    of the  General  Assembly  shall  contribute,  for  the  same
10    purposes  and  at the same rates as are required of a regular
11    participant,  on  each  additional  payment  received  as  an
12    officer.  If the participant serves  as  an  officer  for  at
13    least  2 but less than 4 years, he or she shall contribute an
14    amount equal to the amount that would have  been  contributed
15    had  the  participant  served  as  an  officer  for  4 years.
16    Persons who serve as officers in the  87th  General  Assembly
17    but cannot receive the additional payment to officers because
18    of  the  ban  on  increases  in salary during their terms may
19    nonetheless make  contributions  based  on  those  additional
20    payments  for  the  purpose of having the additional payments
21    included  in  their  highest  salary  for  annuity  purposes;
22    however,  persons   electing   to   make   these   additional
23    contributions  must  also  pay  an  amount  representing  the
24    corresponding  employer  contributions,  as calculated by the
25    System.
26        (e)  Within 60 days after the later of attaining 20 years
27    of creditable service in this System or attaining age 55  (or
28    within  60  days  after the effective date of this amendatory
29    Act of the 93rd  General  Assembly,  if  that  is  later),  a
30    participant (including, without limitation, a participant who
31    first becomes a member of the System after the effective date
32    of  this  amendatory  Act  of  the 93rd General Assembly) may
33    irrevocably elect, through a written direction filed with the
34    Board, to make contributions to the System based only on  the
 
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 1    amount of the increases in salary received by the participant
 2    on  or  after the date of the election, rather than the total
 3    salary received.  This election does not affect the  person's
 4    status  as  a  participant,  but a person so electing thereby
 5    forfeits any accelerated 3% increases  to  which  he  or  she
 6    would  otherwise  be entitled under subsection (b) of Section
 7    2-119.1.  The election shall take effect on the first day  of
 8    the  month following the month in which the written direction
 9    is received by the System.
10    (Source: P.A. 90-766, eff. 8-14-98.)

11        Section 99. Effective date.  This Act takes  effect  upon
12    becoming law.".