093_SB1476enr

 
SB1476 Enrolled                      LRB093 10980 EFG 11590 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 2-119.1 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
23    who  remain in service after attaining 20 years of creditable
24    service, the 3% increases provided under subsection (a) shall
25    begin to accrue on the January 1 next following the date upon
26    which the participant (1) attains age 55, or (2)  attains  20
27    years  of  creditable  service,  whichever  occurs later, and
28    shall continue to accrue while  the  participant  remains  in
29    service;  such increases shall become payable on January 1 or
30    July 1, whichever occurs  first,  next  following  the  first
31    anniversary  of  retirement.   For any person who has service
 
SB1476 Enrolled             -2-      LRB093 10980 EFG 11590 b
 1    credit in the System for the entire period from  January  15,
 2    1969  through  December  31,  1992, regardless of the date of
 3    termination of service, the reference to age 55 in clause (1)
 4    of this subsection (b) shall be deemed to mean age 50.
 5        This subsection (b) does not  apply  to  any  person  who
 6    first becomes a member of the System after the effective date
 7    of this amendatory Act of the 93rd General Assembly.
 8        (c)  The   foregoing  provisions  relating  to  automatic
 9    increases are not applicable to  a  participant  who  retires
10    before  having  made contributions (at the rate prescribed in
11    Section 2-126) for automatic  increases  for  less  than  the
12    equivalent  of  one  full  year.   However,  in  order  to be
13    eligible for the automatic increases, such a participant  may
14    make arrangements to pay to the system the amount required to
15    bring  the  total contributions for the automatic increase to
16    the equivalent of one year's contributions based upon his  or
17    her last salary.
18        (d)  A  participant  who terminated service prior to July
19    1, 1967, with at least 14 years of service is entitled to  an
20    increase  in  retirement annuity beginning January, 1976, and
21    to additional increases in January of each year thereafter.
22        The initial increase shall be 1 1/2%  of  the  originally
23    granted  retirement  annuity multiplied by the number of full
24    years that the  annuitant was  in  receipt  of  such  annuity
25    prior  to  January 1, 1972, plus 2% of the originally granted
26    retirement annuity  for  each  year  after  that  date.   The
27    subsequent annual increases shall be at the rate of 2% of the
28    originally  granted  retirement annuity for each year through
29    1979 and at the rate of 3% for 1980 and thereafter.
30        (e)  Beginning January  1,  1990,  all  automatic  annual
31    increases payable under this Section shall be calculated as a
32    percentage  of  the  total annuity payable at the time of the
33    increase, including previous  increases  granted  under  this
34    Article.
 
SB1476 Enrolled             -3-      LRB093 10980 EFG 11590 b
 1    (Source: P.A. 86-273; 87-794; 87-1265.)

 2        Section  99.  Effective date.  This Act takes effect upon
 3    becoming law.