093_SB0014sam001











                                     LRB093 03003 EFG 12383 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 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
 
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 1    who remain in service after attaining 20 years of  creditable
 2    service, the 3% increases provided under subsection (a) shall
 3    begin to accrue on the January 1 next following the date upon
 4    which  the  participant (1) attains age 55, or (2) attains 20
 5    years of creditable  service,  whichever  occurs  later,  and
 6    shall  continue  to  accrue  while the participant remains in
 7    service; such increases shall become payable on January 1  or
 8    July  1,  whichever  occurs  first,  next following the first
 9    anniversary of retirement.  For any person  who  has  service
10    credit  in  the System for the entire period from January 15,
11    1969 through December 31, 1992, regardless  of  the  date  of
12    termination of service, the reference to age 55 in clause (1)
13    of this subsection (b) shall be deemed to mean age 50.
14        This  subsection  (b)  does  not  apply to any person who
15    first becomes a member of the System after the effective date
16    of this amendatory Act of the 93rd General Assembly.
17        (c)  The  foregoing  provisions  relating  to   automatic
18    increases  are  not  applicable  to a participant who retires
19    before having made contributions (at the rate  prescribed  in
20    Section  2-126)  for  automatic  increases  for less than the
21    equivalent of  one  full  year.   However,  in  order  to  be
22    eligible  for the automatic increases, such a participant may
23    make arrangements to pay to the system the amount required to
24    bring the total contributions for the automatic  increase  to
25    the  equivalent of one year's contributions based upon his or
26    her last salary.
27        (d)  A participant who terminated service prior  to  July
28    1,  1967, with at least 14 years of service is entitled to an
29    increase in retirement annuity beginning January,  1976,  and
30    to additional increases in January of each year thereafter.
31        The  initial  increase  shall be 1 1/2% of the originally
32    granted retirement annuity multiplied by the number  of  full
33    years  that  the   annuitant  was  in receipt of such annuity
34    prior to January 1, 1972, plus 2% of the  originally  granted
 
                            -3-      LRB093 03003 EFG 12383 a
 1    retirement  annuity  for  each  year  after  that  date.  The
 2    subsequent annual increases shall be at the rate of 2% of the
 3    originally granted retirement annuity for each  year  through
 4    1979 and at the rate of 3% for 1980 and thereafter.
 5        (e)  Beginning  January  1,  1990,  all  automatic annual
 6    increases payable under this Section shall be calculated as a
 7    percentage of the total annuity payable at the  time  of  the
 8    increase,  including  previous  increases  granted under this
 9    Article.
10    (Source: P.A. 86-273; 87-794; 87-1265.)

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