093_HB3013

                                     LRB093 06954 EFG 07100 b

 1        AN ACT in relation to public employee benefits.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4        Section  5.   The  Illinois  Pension  Code  is amended by
 5    changing Section 14-108 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
 
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 1    computed as stated in paragraph (b).
 2        (b)  In  the  case  of  a  member who retires on or after
 3    January 1, 1998 and is a  covered  employee,  the  retirement
 4    annuity  for  membership  service  and prior service shall be
 5    computed as stated in paragraph (a) for  all  service  credit
 6    established  as  a  noncovered  employee;  for service credit
 7    established as a covered employee it shall be 1.67% of  final
 8    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 06954 EFG 07100 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  eligible creditable
13    membership service as defined in Section  14-110  a  security
14    employee   of  the  Department  of  Corrections  or  security
15    employee of the Department of Human Services  shall  be:   if
16    retirement  occurs  on  or after January 1, 2001, 3% of final
17    average compensation for each year of creditable service;  or
18    if  retirement  occurs  before January 1, 2001, 1.9% of final
19    average compensation for  each  of  the  first  10  years  of
20    service, 2.1% for each of the next 10 years of service, 2.25%
21    for  each  year  of service in excess of 20 but not exceeding
22    30, and 2.5% for each year in excess of 30; except  that  the
23    annuity  may  be  calculated under subsection (a) rather than
24    this subsection (g) if the resulting annuity is greater.
25        (h)  In the case of a member who is a  covered  employee,
26    the  retirement  annuity  for  eligible creditable membership
27    service as defined in Section 14-110 a security  employee  of
28    the  Department  of  Corrections  or security employee of the
29    Department of Human Services shall be:  if retirement  occurs
30    on   or   after  January  1,  2001,  2.5%  of  final  average
31    compensation for each  year  of  creditable  service;  or  if
32    retirement  occurs  before  January  1,  2001, 1.67% of final
33    average compensation for  each  of  the  first  10  years  of
34    service,  1.90%  for  each  of  the next 10 years of service,
 
                            -4-      LRB093 06954 EFG 07100 b
 1    2.10% for each year of  service  in  excess  of  20  but  not
 2    exceeding 30, and 2.30% for each year in excess of 30.
 3        (i)  (Blank).  For  the  purposes  of  this  Section  and
 4    Section  14-133  of  this Act, the term "security employee of
 5    the  Department  of  Corrections"  and  the  term   "security
 6    employee  of the Department of Human Services" shall have the
 7    meanings ascribed  to  them  in  subsection  (c)  of  Section
 8    14-110.
 9        (j)  The   retirement   annuity   computed   pursuant  to
10    paragraphs (g) or (h)  shall  be  applicable  only  to  those
11    security  employees  of  the  Department  of  Corrections and
12    security employees of the Department of  Human  Services  who
13    have  at least 20 years of membership service and who are not
14    eligible for  the  alternative  retirement  annuity  provided
15    under  Section 14-110.  However, persons transferring to this
16    System under Section 14-108.2 or 14-108.2c who  have  service
17    credit  under  Article 16 of this Code may count such service
18    toward  establishing  their  eligibility  under  the  20-year
19    service requirement of this subsection; but such service  may
20    be  used  only for establishing such eligibility, and not for
21    the purpose of increasing or calculating any benefit.
22        (k)  (Blank).
23        (l)  The changes to this Section made by this  amendatory
24    Act  of  1997  (changing  certain retirement annuity formulas
25    from a stepped rate to a flat  rate)  apply  to  members  who
26    retire on or after January 1, 1998, without regard to whether
27    employment  terminated  before  the  effective  date  of this
28    amendatory Act of 1997.  An annuity shall not  be  calculated
29    in  steps  by  using the new flat rate for some steps and the
30    superseded stepped rate for other steps of the same  type  of
31    service.
32    (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01)

33        Section  99.  Effective date.  This Act takes effect upon
 
                            -5-      LRB093 06954 EFG 07100 b
 1    becoming law.