97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1447

 

Introduced , by Rep. Kelly Burke

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/2-108.1  from Ch. 108 1/2, par. 2-108.1
40 ILCS 5/2-119.1  from Ch. 108 1/2, par. 2-119.1
40 ILCS 5/2-121.1  from Ch. 108 1/2, par. 2-121.1
40 ILCS 5/18-125  from Ch. 108 1/2, par. 18-125
40 ILCS 5/18-125.1  from Ch. 108 1/2, par. 18-125.1
40 ILCS 5/18-128.01  from Ch. 108 1/2, par. 18-128.01

    Amends the General Assembly and Judges Articles of the Illinois Pension Code. Provides that, for persons who first become participants of either system on or after the effective date of the amendatory Act: (i) the automatic annual increases in participant and survivor annuities shall be at the rate of 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u, whichever is less, of the originally granted retirement annuity (rather than at the rate of 3% or the annual unadjusted percentage increase in the consumer price index-u, whichever is less, of the annuity then being paid) and (ii) the annual increases in highest salary for annuity purposes and final average salary shall be at the rate of the lesser of 3% or one-half the annual unadjusted percentage increase (but not less than zero) in the consumer price index-u (rather than at the rate of the lesser of 3% or the annual unadjusted percentage increase in the consumer price index-u).


LRB097 05201 JDS 45250 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1447LRB097 05201 JDS 45250 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 2-108.1, 2-119.1, 2-121.1, 18-125, 18-125.1, and
618-128.01 as follows:
 
7    (40 ILCS 5/2-108.1)  (from Ch. 108 1/2, par. 2-108.1)
8    Sec. 2-108.1. Highest salary for annuity purposes.
9    (a) "Highest salary for annuity purposes" means whichever
10of the following is applicable to the participant:
11    For a participant who first becomes a participant of this
12System before August 10, 2009 (the effective date of Public Act
1396-207):
14        (1) For a participant who is a member of the General
15    Assembly on his or her last day of service: the highest
16    salary that is prescribed by law, on the participant's last
17    day of service, for a member of the General Assembly who is
18    not an officer; plus, if the participant was elected or
19    appointed to serve as an officer of the General Assembly
20    for 2 or more years and has made contributions as required
21    under subsection (d) of Section 2-126, the highest
22    additional amount of compensation prescribed by law, at the
23    time of the participant's service as an officer, for

 

 

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1    members of the General Assembly who serve in that office.
2        (2) For a participant who holds one of the State
3    executive offices specified in Section 2-105 on his or her
4    last day of service: the highest salary prescribed by law
5    for service in that office on the participant's last day of
6    service.
7        (3) For a participant who is Clerk or Assistant Clerk
8    of the House of Representatives or Secretary or Assistant
9    Secretary of the Senate on his or her last day of service:
10    the salary received for service in that capacity on the
11    last day of service, but not to exceed the highest salary
12    (including additional compensation for service as an
13    officer) that is prescribed by law on the participant's
14    last day of service for the highest paid officer of the
15    General Assembly.
16        (4) For a participant who is a continuing participant
17    under Section 2-117.1 on his or her last day of service:
18    the salary received for service in that capacity on the
19    last day of service, but not to exceed the highest salary
20    (including additional compensation for service as an
21    officer) that is prescribed by law on the participant's
22    last day of service for the highest paid officer of the
23    General Assembly.
24    For a participant who first becomes a participant of this
25System on or after August 10, 2009 (the effective date of
26Public Act 96-207) and before January 1, 2011 (the effective

 

 

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1date of Public Act 96-889), the average monthly salary obtained
2by dividing the total salary of the participant during the
3period of: (1) the 48 consecutive months of service within the
4last 120 months of service in which the total compensation was
5the highest, or (2) the total period of service, if less than
648 months, by the number of months of service in that period.
7    For a participant who first becomes a participant of this
8System on or after January 1, 2011 (the effective date of
9Public Act 96-889), the average monthly salary obtained by
10dividing the total salary of the participant during the 96
11consecutive months of service within the last 120 months of
12service in which the total compensation was the highest by the
13number of months of service in that period; however, beginning
14January 1, 2011, the highest salary for annuity purposes may
15not exceed $106,800, except that that amount shall annually
16thereafter be increased by the lesser of (i) 3% of that amount,
17including all previous adjustments, or (ii) the annual
18unadjusted percentage increase (but not less than zero) in the
19consumer price index-u for the 12 months ending with the
20September preceding each November 1.
21    For a participant who first becomes a participant of this
22System on or after the effective date of this amendatory Act of
23the 97th General Assembly, the average monthly salary obtained
24by dividing the total salary of the participant during the 96
25consecutive months of service within the last 120 months of
26service in which the total compensation was the highest by the

 

 

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1number of months of service in that period; however, beginning
2on the effective date of this amendatory Act of the 97th
3General Assembly, the highest salary for annuity purposes may
4not exceed $106,800, except that that amount shall annually
5thereafter be increased by the lesser of (i) 3% of that amount,
6including all previous adjustments, or (ii) one-half the annual
7unadjusted percentage increase (but not less than zero) in the
8consumer price index-u for the 12 months ending with the
9September preceding each November 1.
10    "Consumer price index-u" means the index published by the
11Bureau of Labor Statistics of the United States Department of
12Labor that measures the average change in prices of goods and
13services purchased by all urban consumers, United States city
14average, all items, 1982-84 = 100. The new amount resulting
15from each annual adjustment shall be determined by the Public
16Pension Division of the Department of Insurance and made
17available to the Board by November 1 of each year.
18    (b) The earnings limitations of subsection (a) apply to
19earnings under any other participating system under the
20Retirement Systems Reciprocal Act that are considered in
21calculating a proportional annuity under this Article, except
22in the case of a person who first became a member of this
23System before August 22, 1994.
24    (c) In calculating the subsection (a) earnings limitation
25to be applied to earnings under any other participating system
26under the Retirement Systems Reciprocal Act for the purpose of

 

 

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1calculating a proportional annuity under this Article, the
2participant's last day of service shall be deemed to mean the
3last day of service in any participating system from which the
4person has applied for a proportional annuity under the
5Retirement Systems Reciprocal Act.
6(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
796-1490, eff. 1-1-11.)
 
8    (40 ILCS 5/2-119.1)  (from Ch. 108 1/2, par. 2-119.1)
9    Sec. 2-119.1. Automatic increase in retirement annuity.
10    (a) A participant who retires after June 30, 1967, and who
11has not received an initial increase under this Section before
12the effective date of this amendatory Act of 1991, shall, in
13January or July next following the first anniversary of
14retirement, whichever occurs first, and in the same month of
15each year thereafter, but in no event prior to age 60, have the
16amount of the originally granted retirement annuity increased
17as follows: for each year through 1971, 1 1/2%; for each year
18from 1972 through 1979, 2%; and for 1980 and each year
19thereafter, 3%. Annuitants who have received an initial
20increase under this subsection prior to the effective date of
21this amendatory Act of 1991 shall continue to receive their
22annual increases in the same month as the initial increase.
23    (b) Beginning January 1, 1990, for eligible participants
24who remain in service after attaining 20 years of creditable
25service, the 3% increases provided under subsection (a) shall

 

 

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1begin to accrue on the January 1 next following the date upon
2which the participant (1) attains age 55, or (2) attains 20
3years of creditable service, whichever occurs later, and shall
4continue to accrue while the participant remains in service;
5such increases shall become payable on January 1 or July 1,
6whichever occurs first, next following the first anniversary of
7retirement. For any person who has service credit in the System
8for the entire period from January 15, 1969 through December
931, 1992, regardless of the date of termination of service, the
10reference to age 55 in clause (1) of this subsection (b) shall
11be deemed to mean age 50.
12    This subsection (b) does not apply to any person who first
13becomes a member of the System after the effective date of this
14amendatory Act of the 93rd General Assembly.
15    (b-5) Notwithstanding any other provision of this Article,
16a participant who first becomes a participant on or after
17January 1, 2011 (the effective date of Public Act 96-889)
18shall, in January or July next following the first anniversary
19of retirement, whichever occurs first, and in the same month of
20each year thereafter, but in no event prior to age 67, have the
21amount of the retirement annuity then being paid increased by
223% or the annual unadjusted percentage increase in the Consumer
23Price Index for All Urban Consumers as determined by the Public
24Pension Division of the Department of Insurance under
25subsection (a) of Section 2-108.1, whichever is less.
26    (b-10) Notwithstanding any other provision of this

 

 

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1Article, a participant who first becomes a participant on or
2after the effective date of this amendatory Act of the 97th
3General Assembly shall, in January or July next following the
4first anniversary of retirement, whichever occurs first, and in
5the same month of each year thereafter, but in no event prior
6to age 67, have the annuity increased by 3% or one-half the
7annual unadjusted percentage increase (but not less than zero)
8in the Consumer Price Index for All Urban Consumers as
9determined by the Public Pension Division of the Department of
10Insurance under subsection (a) of Section 2-108.1, whichever is
11less, of the originally granted retirement annuity.
12    (c) The foregoing provisions relating to automatic
13increases are not applicable to a participant who retires
14before having made contributions (at the rate prescribed in
15Section 2-126) for automatic increases for less than the
16equivalent of one full year. However, in order to be eligible
17for the automatic increases, such a participant may make
18arrangements to pay to the system the amount required to bring
19the total contributions for the automatic increase to the
20equivalent of one year's contributions based upon his or her
21last salary.
22    (d) A participant who terminated service prior to July 1,
231967, with at least 14 years of service is entitled to an
24increase in retirement annuity beginning January, 1976, and to
25additional increases in January of each year thereafter.
26    The initial increase shall be 1 1/2% of the originally

 

 

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1granted retirement annuity multiplied by the number of full
2years that the annuitant was in receipt of such annuity prior
3to January 1, 1972, plus 2% of the originally granted
4retirement annuity for each year after that date. The
5subsequent annual increases shall be at the rate of 2% of the
6originally granted retirement annuity for each year through
71979 and at the rate of 3% for 1980 and thereafter.
8    (e) Beginning January 1, 1990, all automatic annual
9increases payable under this Section shall be calculated as a
10percentage of the total annuity payable at the time of the
11increase, including previous increases granted under this
12Article.
13(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
14    (40 ILCS 5/2-121.1)  (from Ch. 108 1/2, par. 2-121.1)
15    Sec. 2-121.1. Survivor's annuity - amount.
16    (a) A surviving spouse shall be entitled to 66 2/3% of the
17amount of retirement annuity to which the participant or
18annuitant was entitled on the date of death, without regard to
19whether the participant had attained age 55 prior to his or her
20death, subject to a minimum payment of 10% of salary. If a
21surviving spouse, regardless of age, has in his or her care at
22the date of death any eligible child or children of the
23participant, the survivor's annuity shall be the greater of the
24following: (1) 66 2/3% of the amount of retirement annuity to
25which the participant or annuitant was entitled on the date of

 

 

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1death, or (2) 30% of the participant's salary increased by 10%
2of salary on account of each such child, subject to a total
3payment for the surviving spouse and children of 50% of salary.
4If eligible children survive but there is no surviving spouse,
5or if the surviving spouse dies or becomes disqualified by
6remarriage while eligible children survive, each eligible
7child shall be entitled to an annuity of 20% of salary, subject
8to a maximum total payment for all such children of 50% of
9salary.
10    However, the survivor's annuity payable under this Section
11shall not be less than 100% of the amount of retirement annuity
12to which the participant or annuitant was entitled on the date
13of death, if he or she is survived by a dependent disabled
14child.
15    The salary to be used for determining these benefits shall
16be the salary used for determining the amount of retirement
17annuity as provided in Section 2-119.01.
18    (b) Upon the death of a participant after the termination
19of service or upon death of an annuitant, the maximum total
20payment to a surviving spouse and eligible children, or to
21eligible children alone if there is no surviving spouse, shall
22be 75% of the retirement annuity to which the participant or
23annuitant was entitled, unless there is a dependent disabled
24child among the survivors.
25    (c) When a child ceases to be an eligible child, the
26annuity to that child, or to the surviving spouse on account of

 

 

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1that child, shall thereupon cease, and the annuity payable to
2the surviving spouse or other eligible children shall be
3recalculated if necessary.
4    Upon the ineligibility of the last eligible child, the
5annuity shall immediately revert to the amount payable upon
6death of a participant or annuitant who leaves no eligible
7children. If the surviving spouse is then under age 50, the
8annuity as revised shall be deferred until the attainment of
9age 50.
10    (d) Beginning January 1, 1990, every survivor's annuity
11shall be increased (1) on each January 1 occurring on or after
12the commencement of the annuity if the deceased member died
13while receiving a retirement annuity, or (2) in other cases, on
14each January 1 occurring on or after the first anniversary of
15the commencement of the annuity, by an amount equal to 3% of
16the current amount of the annuity, including any previous
17increases under this Article. Such increases shall apply
18without regard to whether the deceased member was in service on
19or after the effective date of this amendatory Act of 1991, but
20shall not accrue for any period prior to January 1, 1990.
21    (d-5) Notwithstanding any other provision of this Article,
22the initial survivor's annuity of a survivor of a participant
23who first becomes a participant on or after January 1, 2011
24(the effective date of Public Act 96-889) shall be in the
25amount of 66 2/3% of the amount of the retirement annuity to
26which the participant or annuitant was entitled on the date of

 

 

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1death and shall be increased (1) on each January 1 occurring on
2or after the commencement of the annuity if the deceased member
3died while receiving a retirement annuity or (2) in other
4cases, on each January 1 occurring on or after the first
5anniversary of the commencement of the annuity, by an amount
6equal to 3% or the annual unadjusted percentage increase in the
7Consumer Price Index for All Urban Consumers as determined by
8the Public Pension Division of the Department of Insurance
9under subsection (a) of Section 2-108.1, whichever is less, of
10the survivor's annuity then being paid.
11    (d-10) Notwithstanding any other provision of this
12Article, the initial survivor's annuity of a survivor of a
13participant who first becomes a participant on or after the
14effective date of this amendatory Act of the 97th General
15Assembly shall be in the amount of 66 2/3% of the amount of the
16retirement annuity to which the participant or annuitant was
17entitled on the date of death and shall be increased (1) on
18each January 1 occurring on or after the commencement of the
19annuity if the deceased member died while receiving a
20retirement annuity or (2) in other cases, on each January 1
21occurring on or after the first anniversary of the commencement
22of the annuity, by an amount equal to 3% or one-half the annual
23unadjusted percentage increase (but not less than zero) in the
24Consumer Price Index for All Urban Consumers as determined by
25the Public Pension Division of the Department of Insurance
26under subsection (a) of Section 2-108.1, whichever is less, of

 

 

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1the originally granted survivor's annuity.
2    (e) Notwithstanding any other provision of this Article,
3beginning January 1, 1990, the minimum survivor's annuity
4payable to any person who is entitled to receive a survivor's
5annuity under this Article shall be $300 per month, without
6regard to whether or not the deceased participant was in
7service on the effective date of this amendatory Act of 1989.
8    (f) In the case of a proportional survivor's annuity
9arising under the Retirement Systems Reciprocal Act where the
10amount payable by the System on January 1, 1993 is less than
11$300 per month, the amount payable by the System shall be
12increased beginning on that date by a monthly amount equal to
13$2 for each full year that has expired since the annuity began.
14(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
15    (40 ILCS 5/18-125)  (from Ch. 108 1/2, par. 18-125)
16    Sec. 18-125. Retirement annuity amount.
17    (a) The annual retirement annuity for a participant who
18terminated service as a judge prior to July 1, 1971 shall be
19based on the law in effect at the time of termination of
20service.
21    (b) Except as provided in subsection (b-5), effective July
221, 1971, the retirement annuity for any participant in service
23on or after such date shall be 3 1/2% of final average salary,
24as defined in this Section, for each of the first 10 years of
25service, and 5% of such final average salary for each year of

 

 

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1service on excess of 10.
2    For purposes of this Section, final average salary for a
3participant who first serves as a judge before August 10, 2009
4(the effective date of Public Act 96-207) shall be:
5        (1) the average salary for the last 4 years of credited
6    service as a judge for a participant who terminates service
7    before July 1, 1975.
8        (2) for a participant who terminates service after June
9    30, 1975 and before July 1, 1982, the salary on the last
10    day of employment as a judge.
11        (3) for any participant who terminates service after
12    June 30, 1982 and before January 1, 1990, the average
13    salary for the final year of service as a judge.
14        (4) for a participant who terminates service on or
15    after January 1, 1990 but before the effective date of this
16    amendatory Act of 1995, the salary on the last day of
17    employment as a judge.
18        (5) for a participant who terminates service on or
19    after the effective date of this amendatory Act of 1995,
20    the salary on the last day of employment as a judge, or the
21    highest salary received by the participant for employment
22    as a judge in a position held by the participant for at
23    least 4 consecutive years, whichever is greater.
24    However, in the case of a participant who elects to
25discontinue contributions as provided in subdivision (a)(2) of
26Section 18-133, the time of such election shall be considered

 

 

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1the last day of employment in the determination of final
2average salary under this subsection.
3    For a participant who first serves as a judge on or after
4August 10, 2009 (the effective date of Public Act 96-207) and
5before January 1, 2011 (the effective date of Public Act
696-889), final average salary shall be the average monthly
7salary obtained by dividing the total salary of the participant
8during the period of: (1) the 48 consecutive months of service
9within the last 120 months of service in which the total
10compensation was the highest, or (2) the total period of
11service, if less than 48 months, by the number of months of
12service in that period.
13    The maximum retirement annuity for any participant shall be
1485% of final average salary.
15    (b-5) Notwithstanding any other provision of this Article,
16for a participant who first serves as a judge on or after
17January 1, 2011 (the effective date of Public Act 96-889), the
18annual retirement annuity is 3% of the participant's final
19average salary for each year of service. The maximum retirement
20annuity payable shall be 60% of the participant's final average
21salary.
22    For a participant who first serves as a judge on or after
23January 1, 2011 (the effective date of Public Act 96-889),
24final average salary shall be the average monthly salary
25obtained by dividing the total salary of the judge during the
2696 consecutive months of service within the last 120 months of

 

 

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1service in which the total salary was the highest by the number
2of months of service in that period; however, beginning January
31, 2011, the annual salary may not exceed $106,800, except that
4that amount shall annually thereafter be increased by the
5lesser of (i) 3% of that amount, including all previous
6adjustments, or (ii) the annual unadjusted percentage increase
7(but not less than zero) in the consumer price index-u for the
812 months ending with the September preceding each November 1.
9    For a participant who first serves as a judge on or after
10the effective date of this amendatory Act of the 97th General
11Assembly, final average salary shall be the average monthly
12salary obtained by dividing the total salary of the judge
13during the 96 consecutive months of service within the last 120
14months of service in which the total salary was the highest by
15the number of months of service in that period; however,
16beginning on the effective date of this amendatory Act of the
1797th General Assembly, the annual salary may not exceed
18$106,800, except that that amount shall annually thereafter be
19increased by the lesser of (i) 3% of that amount, including all
20previous adjustments, or (ii) one-half the annual unadjusted
21percentage increase (but not less than zero) in the consumer
22price index-u for the 12 months ending with the September
23preceding each November 1.
24    "Consumer price index-u" means the index published by the
25Bureau of Labor Statistics of the United States Department of
26Labor that measures the average change in prices of goods and

 

 

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1services purchased by all urban consumers, United States city
2average, all items, 1982-84 = 100. The new amount resulting
3from each annual adjustment shall be determined by the Public
4Pension Division of the Department of Insurance and made
5available to the Board by November 1st of each year.
6    (c) The retirement annuity for a participant who retires
7prior to age 60 with less than 28 years of service in the
8System shall be reduced 1/2 of 1% for each month that the
9participant's age is under 60 years at the time the annuity
10commences. However, for a participant who retires on or after
11the effective date of this amendatory Act of the 91st General
12Assembly, the percentage reduction in retirement annuity
13imposed under this subsection shall be reduced by 5/12 of 1%
14for every month of service in this System in excess of 20
15years, and therefore a participant with at least 26 years of
16service in this System may retire at age 55 without any
17reduction in annuity.
18    The reduction in retirement annuity imposed by this
19subsection shall not apply in the case of retirement on account
20of disability.
21    (d) Notwithstanding any other provision of this Article,
22for a participant who first serves as a judge on or after
23January 1, 2011 (the effective date of Public Act 96-889) and
24who is retiring after attaining age 62, the retirement annuity
25shall be reduced by 1/2 of 1% for each month that the
26participant's age is under age 67 at the time the annuity

 

 

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1commences.
2(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
396-1000, eff. 7-2-10; 96-1490, eff. 1-1-11.)
 
4    (40 ILCS 5/18-125.1)  (from Ch. 108 1/2, par. 18-125.1)
5    Sec. 18-125.1. Automatic increase in retirement annuity. A
6participant who retires from service after June 30, 1969,
7shall, in January of the year next following the year in which
8the first anniversary of retirement occurs, and in January of
9each year thereafter, have the amount of his or her originally
10granted retirement annuity increased as follows: for each year
11up to and including 1971, 1 1/2%; for each year from 1972
12through 1979 inclusive, 2%; and for 1980 and each year
13thereafter, 3%.
14    Notwithstanding any other provision of this Article, a
15retirement annuity for a participant who first serves as a
16judge on or after January 1, 2011 (the effective date of Public
17Act 96-889) shall be increased in January of the year next
18following the year in which the first anniversary of retirement
19occurs, but in no event prior to age 67, and in January of each
20year thereafter, by an amount equal to 3% or the annual
21percentage increase in the consumer price index-u as determined
22by the Public Pension Division of the Department of Insurance
23under subsection (b-5) of Section 18-125, whichever is less, of
24the retirement annuity then being paid.
25    Notwithstanding any other provision of this Article, a

 

 

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1retirement annuity for a participant who first serves as a
2judge on or after the effective date of this amendatory Act of
3the 97th General Assembly shall be increased in January of the
4year next following the year in which the first anniversary of
5retirement occurs, but in no event prior to age 67, and in
6January of each year thereafter, by an amount equal to 3% or
7one-half the annual unadjusted percentage increase (but not
8less than zero) in the consumer price index-u as determined by
9the Public Pension Division of the Department of Insurance
10under subsection (b-5) of Section 18-125, whichever is less, of
11the originally granted retirement annuity.
12    This Section is not applicable to a participant who retires
13before he or she has made contributions at the rate prescribed
14in Section 18-133 for automatic increases for not less than the
15equivalent of one full year, unless such a participant arranges
16to pay the system the amount required to bring the total
17contributions for the automatic increase to the equivalent of
18one year's contribution based upon his or her last year's
19salary.
20    This Section is applicable to all participants in service
21after June 30, 1969 unless a participant has elected, prior to
22September 1, 1969, in a written direction filed with the board
23not to be subject to the provisions of this Section. Any
24participant in service on or after July 1, 1992 shall have the
25option of electing prior to April 1, 1993, in a written
26direction filed with the board, to be covered by the provisions

 

 

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1of the 1969 amendatory Act. Such participant shall be required
2to make the aforesaid additional contributions with compound
3interest at 4% per annum.
4    Any participant who has become eligible to receive the
5maximum rate of annuity and who resumes service as a judge
6after receiving a retirement annuity under this Article shall
7have the amount of his or her retirement annuity increased by
83% of the originally granted annuity amount for each year of
9such resumed service, beginning in January of the year next
10following the date of such resumed service, upon subsequent
11termination of such resumed service.
12    Beginning January 1, 1990, all automatic annual increases
13payable under this Section shall be calculated as a percentage
14of the total annuity payable at the time of the increase,
15including previous increases granted under this Article.
16(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
17    (40 ILCS 5/18-128.01)  (from Ch. 108 1/2, par. 18-128.01)
18    Sec. 18-128.01. Amount of survivor's annuity.
19    (a) Upon the death of an annuitant, his or her surviving
20spouse shall be entitled to a survivor's annuity of 66 2/3% of
21the annuity the annuitant was receiving immediately prior to
22his or her death, inclusive of annual increases in the
23retirement annuity to the date of death.
24    (b) Upon the death of an active participant, his or her
25surviving spouse shall receive a survivor's annuity of 66 2/3%

 

 

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1of the annuity earned by the participant as of the date of his
2or her death, determined without regard to whether the
3participant had attained age 60 as of that time, or 7 1/2% of
4the last salary of the decedent, whichever is greater.
5    (c) Upon the death of a participant who had terminated
6service with at least 10 years of service, his or her surviving
7spouse shall be entitled to a survivor's annuity of 66 2/3% of
8the annuity earned by the deceased participant at the date of
9death.
10    (d) Upon the death of an annuitant, active participant, or
11participant who had terminated service with at least 10 years
12of service, each surviving child under the age of 18 or
13disabled as defined in Section 18-128 shall be entitled to a
14child's annuity in an amount equal to 5% of the decedent's
15final salary, not to exceed in total for all such children the
16greater of 20% of the decedent's last salary or 66 2/3% of the
17annuity received or earned by the decedent as provided under
18subsections (a) and (b) of this Section. This child's annuity
19shall be paid whether or not a survivor's annuity was elected
20under Section 18-123.
21    (e) The changes made in the survivor's annuity provisions
22by Public Act 82-306 shall apply to the survivors of a deceased
23participant or annuitant whose death occurs on or after August
2421, 1981.
25    (f) Beginning January 1, 1990, every survivor's annuity
26shall be increased (1) on each January 1 occurring on or after

 

 

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1the commencement of the annuity if the deceased member died
2while receiving a retirement annuity, or (2) in other cases, on
3each January 1 occurring on or after the first anniversary of
4the commencement of the annuity, by an amount equal to 3% of
5the current amount of the annuity, including any previous
6increases under this Article. Such increases shall apply
7without regard to whether the deceased member was in service on
8or after the effective date of this amendatory Act of 1991, but
9shall not accrue for any period prior to January 1, 1990.
10    (g) Notwithstanding any other provision of this Article,
11the initial survivor's annuity for a survivor of a participant
12who first serves as a judge after January 1, 2011 (the
13effective date of Public Act 96-889) shall be in the amount of
1466 2/3% of the annuity received or earned by the decedent, and
15shall be increased (1) on each January 1 occurring on or after
16the commencement of the annuity if the deceased participant
17died while receiving a retirement annuity, or (2) in other
18cases, on each January 1 occurring on or after the first
19anniversary of the commencement of the annuity, but in no event
20prior to age 67, by an amount equal to 3% or the annual
21unadjusted percentage increase in the consumer price index-u as
22determined by the Public Pension Division of the Department of
23Insurance under subsection (b-5) of Section 18-125, whichever
24is less, of the survivor's annuity then being paid.
25    (h) Notwithstanding any other provision of this Article,
26the initial survivor's annuity for a survivor of a participant

 

 

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1who first serves as a judge on or after the effective date of
2this amendatory Act of the 97th General Assembly shall be in
3the amount of 66 2/3% of the annuity received or earned by the
4decedent, and shall be increased (1) on each January 1
5occurring on or after the commencement of the annuity if the
6deceased participant died while receiving a retirement
7annuity, or (2) in other cases, on each January 1 occurring on
8or after the first anniversary of the commencement of the
9annuity, but in no event prior to age 67, by an amount equal to
103% or one-half the annual unadjusted percentage increase (but
11not less than zero) in the consumer price index-u as determined
12by the Public Pension Division of the Department of Insurance
13under subsection (b-5) of Section 18-125, whichever is less, of
14the originally granted survivor's annuity.
15(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)