093_SB1208

 
                                     LRB093 07552 EFG 07727 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 Sections 14-108 and 14-133 as follows:

 6        (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
 7        Sec. 14-108.  Amount of retirement annuity.  A member who
 8    has contributed to the System for at least 12 months shall be
 9    entitled  to  a  prior  service  annuity  for  each  year  of
10    certified prior service credited to him, except that a member
11    shall  receive 1/3 of the prior service annuity for each year
12    of service for which contributions have been made and all  of
13    such  annuity  shall  be  payable  after  the member has made
14    contributions for a period of 3 years.  Proportionate amounts
15    shall be payable for service of less than a full  year  after
16    completion of at least 12 months.
17        The   total   period  of  service  to  be  considered  in
18    establishing the  measure  of  prior  service  annuity  shall
19    include  service  credited in the Teachers' Retirement System
20    of  the  State  of  Illinois  and  the   State   Universities
21    Retirement  System  for which contributions have been made by
22    the member to such systems; provided that at least 1 year  of
23    the total period of 3 years prescribed for the allowance of a
24    full  measure  of  prior  service  annuity  shall  consist of
25    membership service in this system for which credit  has  been
26    granted.
27        (a)  In  the  case  of  a  member who retires on or after
28    January 1, 1998 and is a noncovered employee, the  retirement
29    annuity  for  membership  service  and prior service shall be
30    2.2% of final average compensation for each year of  service.
31    Any service credit established as a covered employee shall be
 
                            -2-      LRB093 07552 EFG 07727 b
 1    computed as stated in paragraph (b).
 2        (b)  In  the  case  of  a  member who retires on or after
 3    January  1,  2004  1998  and  is  a  covered  employee,   the
 4    retirement  annuity  for membership service and prior service
 5    shall be computed as stated in paragraph (a) for all  service
 6    credit  established  as  a  noncovered  employee; for service
 7    credit established as a covered employee  it  shall  be  2.0%
 8    1.67% of final average compensation for each year of service.
 9        (c)  For  a  member  retiring  after attaining age 55 but
10    before age 60 with at least 30 but  less  than  35  years  of
11    creditable  service  if retirement is before January 1, 2001,
12    or with at least 25 but less  than  30  years  of  creditable
13    service  if  retirement  is  on or after January 1, 2001, the
14    retirement annuity shall be reduced by 1/2  of  1%  for  each
15    month  that  the  member's age is under age 60 at the time of
16    retirement.
17        (d)  A retirement annuity shall not exceed 75%  of  final
18    average compensation, subject to such extension as may result
19    from the application of Section 14-114 or Section 14-115.
20        (e)  The   retirement  annuity  payable  to  any  covered
21    employee who is a member of the  System  and  in  service  on
22    January 1, 1969, or in service thereafter in 1969 as a result
23    of  legislation  enacted  by  the  Illinois  General Assembly
24    transferring the  member  to  State  employment  from  county
25    employment  in  a county Department of Public Aid in counties
26    of 3,000,000 or more population, under a plan of coordination
27    with  the  Old  Age,  Survivors  and  Disability   provisions
28    thereof,  if not fully insured for Old Age Insurance payments
29    under the Federal Old Age, Survivors and Disability Insurance
30    provisions at the date of acceptance of a retirement annuity,
31    shall not be less than the amount for which the member  would
32    have been eligible if coordination were not applicable.
33        (f)  The   retirement  annuity  payable  to  any  covered
34    employee who is a member of the  System  and  in  service  on
 
                            -3-      LRB093 07552 EFG 07727 b
 1    January 1, 1969, or in service thereafter in 1969 as a result
 2    of  the  legislation  designated in the immediately preceding
 3    paragraph, if fully insured for Old  Age  Insurance  payments
 4    under  the  Federal  Social  Security  Act  at  the  date  of
 5    acceptance of a retirement annuity, shall not be less than an
 6    amount  which  when  added  to  the Primary Insurance Benefit
 7    payable to the member upon attainment of age  65  under  such
 8    Federal  Act, will equal the annuity which would otherwise be
 9    payable  if  the  coordinated  plan  of  coverage  were   not
10    applicable.
11        (g)  In  the  case  of  a  member  who  is  a  noncovered
12    employee,  the retirement annuity for membership service as a
13    security  employee  of  the  Department  of  Corrections   or
14    security  employee  of the Department of Human Services shall
15    be:  if retirement occurs on or after January 1, 2001, 3%  of
16    final  average  compensation  for  each  year  of  creditable
17    service; or if retirement occurs before January 1, 2001, 1.9%
18    of  final average compensation for each of the first 10 years
19    of service, 2.1% for each of the next 10  years  of  service,
20    2.25%  for  each  year  of  service  in  excess of 20 but not
21    exceeding 30, and 2.5% for each year in excess of 30;  except
22    that  the  annuity  may  be  calculated  under subsection (a)
23    rather than this subsection (g) if the resulting  annuity  is
24    greater.
25        (h)  In  the  case of a member who is a covered employee,
26    the retirement annuity for membership service as  a  security
27    employee   of  the  Department  of  Corrections  or  security
28    employee of the Department of Human Services  shall  be:   if
29    retirement  occurs on or after January 1, 2001, 2.5% of final
30    average compensation for each year of creditable service;  if
31    retirement  occurs  before  January  1,  2001, 1.67% of final
32    average compensation for  each  of  the  first  10  years  of
33    service,  1.90%  for  each  of  the next 10 years of service,
34    2.10% for each year of  service  in  excess  of  20  but  not
 
                            -4-      LRB093 07552 EFG 07727 b
 1    exceeding 30, and 2.30% for each year in excess of 30.
 2        (i)  For  the purposes of this Section and Section 14-133
 3    of this Act, the term "security employee of the Department of
 4    Corrections"  and  the  term  "security   employee   of   the
 5    Department   of  Human  Services"  shall  have  the  meanings
 6    ascribed to them in subsection (c) of Section 14-110.
 7        (j)  The  retirement   annuity   computed   pursuant   to
 8    paragraphs  (g)  or  (h)  shall  be  applicable only to those
 9    security employees  of  the  Department  of  Corrections  and
10    security  employees  of  the Department of Human Services who
11    have at least 20 years of membership service and who are  not
12    eligible  for  the  alternative  retirement  annuity provided
13    under Section 14-110.  However, persons transferring to  this
14    System  under  Section 14-108.2 or 14-108.2c who have service
15    credit under Article 16 of this Code may count  such  service
16    toward  establishing  their  eligibility  under  the  20-year
17    service  requirement of this subsection; but such service may
18    be used only for establishing such eligibility, and  not  for
19    the purpose of increasing or calculating any benefit.
20        (k)  (Blank).
21        (l)  The  changes to this Section made by this amendatory
22    Act of 1997 (changing  certain  retirement  annuity  formulas
23    from  a  stepped  rate  to  a flat rate) apply to members who
24    retire on or after January 1, 1998, without regard to whether
25    employment terminated  before  the  effective  date  of  this
26    amendatory  Act  of 1997.  An annuity shall not be calculated
27    in steps by using the new flat rate for some  steps  and  the
28    superseded  stepped  rate for other steps of the same type of
29    service.
30    (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01.)

31        (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
32        Sec. 14-133.  Contributions by or on behalf of members.
33        (a)  Each participating employee shall make contributions
 
                            -5-      LRB093 07552 EFG 07727 b
 1    to the System,  based  on  the  employee's  compensation,  as
 2    follows:
 3             (1)  Covered  employees,  except as indicated below,
 4        3.5% for retirement annuity, and  0.5%  for  a  widow  or
 5        survivors   annuity   plus   the   following  amount  for
 6        retirement annuity:  3.5% through December 31, 2003,  and
 7        4.5% thereafter;
 8             (2)  Noncovered   employees,   except  as  indicated
 9        below, 7% for retirement annuity and 1% for  a  widow  or
10        survivors annuity;
11             (3)  Noncovered  employees  serving in a position in
12        which "eligible creditable service" as defined in Section
13        14-110 may be earned, 1% for a widow or survivors annuity
14        plus the following amount for  retirement  annuity:  8.5%
15        through  December  31, 2001; 9.5% in 2002; 10.5% in 2003;
16        and 11.5% in 2004 and thereafter;
17             (4)  Covered employees  serving  in  a  position  in
18        which "eligible creditable service" as defined in Section
19        14-110  may  be  earned,  0.5%  for  a widow or survivors
20        annuity plus the following amount for retirement annuity:
21        5% through December 31, 2001; 6% in 2002; 7% in 2003; and
22        8% in 2004 and thereafter;
23             (5)  Each security employee  of  the  Department  of
24        Corrections or of the Department of Human Services who is
25        a covered employee, 0.5% for a widow or survivors annuity
26        plus  the  following  amount  for  retirement annuity: 5%
27        through December 31, 2001; 6% in 2002; 7% in 2003; and 8%
28        in 2004 and thereafter;
29             (6)  Each security employee  of  the  Department  of
30        Corrections or of the Department of Human Services who is
31        not  a  covered  employee,  1%  for  a widow or survivors
32        annuity plus the following amount for retirement annuity:
33        8.5% through December 31, 2001; 9.5% in  2002;  10.5%  in
34        2003; and 11.5% in 2004 and thereafter.
 
                            -6-      LRB093 07552 EFG 07727 b
 1        (b)  Contributions  shall  be  in the form of a deduction
 2    from compensation and shall be made notwithstanding that  the
 3    compensation  paid  in  cash to the employee shall be reduced
 4    thereby below the minimum prescribed by  law  or  regulation.
 5    Each  member is deemed to consent and agree to the deductions
 6    from compensation provided for in  this  Article,  and  shall
 7    receipt in full for salary or compensation.
 8    (Source: P.A. 92-14, eff. 6-28-01.)

 9        Section  99.  Effective date.  This Act takes effect upon
10    becoming law.