Full Text of HB1166 98th General Assembly
HB1166ham007 98TH GENERAL ASSEMBLY | Rep. Elaine Nekritz Filed: 3/13/2013
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| 1 | | AMENDMENT TO HOUSE BILL 1166
| 2 | | AMENDMENT NO. ______. Amend House Bill 1166, AS AMENDED, by | 3 | | inserting after the end of Section 1 the following:
| 4 | | "Section 5. The Illinois Pension Code is amended by | 5 | | changing Sections 2-126, 14-133, 15-136, 15-157, 16-133, and | 6 | | 16-152 and by adding Sections 2-105.1, 14-103.40, 15-107.1, and | 7 | | 16-106.4 as follows: | 8 | | (40 ILCS 5/2-105.1 new) | 9 | | Sec. 2-105.1. Tier I participant. "Tier I participant": A | 10 | | participant who first became a participant before January 1, | 11 | | 2011.
| 12 | | (40 ILCS 5/2-126) (from Ch. 108 1/2, par. 2-126)
| 13 | | Sec. 2-126. Contributions by participants.
| 14 | | (a) Each participant shall contribute toward the cost of | 15 | | his or her
retirement annuity a percentage of each payment of |
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| 1 | | salary received by him or
her for service as a member as | 2 | | follows: for service between October 31, 1947
and January 1, | 3 | | 1959, 5%; for service between January 1, 1959 and June 30, | 4 | | 1969,
6%; for service between July 1, 1969 and January 10, | 5 | | 1973, 6 1/2%; for service
after January 10, 1973, 7%; for | 6 | | service after December 31, 1981, 8 1/2%.
| 7 | | (a-5) Beginning July 1, 2013, in addition to the | 8 | | contributions otherwise required under this Article, each Tier | 9 | | I participant shall contribute 3% of salary toward the cost of | 10 | | his or her retirement annuity. | 11 | | (b) Beginning August 2, 1949, each male participant, and | 12 | | from July 1,
1971, each female participant shall contribute | 13 | | towards the cost of the
survivor's annuity 2% of salary.
| 14 | | A participant who has no eligible survivor's annuity | 15 | | beneficiary may elect
to cease making contributions for | 16 | | survivor's annuity under this subsection.
A survivor's annuity | 17 | | shall not be payable upon the death of a person who has
made | 18 | | this election, unless prior to that death the election has been | 19 | | revoked
and the amount of the contributions that would have | 20 | | been paid under this
subsection in the absence of the election | 21 | | is paid to the System, together
with interest at the rate of 4% | 22 | | per year from the date the contributions
would have been made | 23 | | to the date of payment.
| 24 | | (c) Beginning July 1, 1967, each participant shall | 25 | | contribute 1% of
salary towards the cost of automatic increase | 26 | | in annuity provided in
Section 2-119.1. These contributions |
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| 1 | | shall be made concurrently with
contributions for retirement | 2 | | annuity purposes.
| 3 | | (d) In addition, each participant serving as an officer of | 4 | | the General
Assembly shall contribute, for the same purposes | 5 | | and at the same rates
as are required of a regular participant, | 6 | | on each additional payment
received as an officer. If the | 7 | | participant serves as an
officer for at least 2 but less than 4 | 8 | | years, he or she shall
contribute an amount equal to the amount | 9 | | that would have been contributed
had the participant served as | 10 | | an officer for 4 years. Persons who serve
as officers in the | 11 | | 87th General Assembly but cannot receive the additional
payment | 12 | | to officers because of the ban on increases in salary during | 13 | | their
terms may nonetheless make contributions based on those | 14 | | additional payments
for the purpose of having the additional | 15 | | payments included in their highest
salary for annuity purposes; | 16 | | however, persons electing to make these
additional | 17 | | contributions must also pay an amount representing the
| 18 | | corresponding employer contributions, as calculated by the | 19 | | System.
| 20 | | (e) Notwithstanding any other provision of this Article, | 21 | | the required contribution of a participant who first becomes a | 22 | | participant on or after January 1, 2011 shall not exceed the | 23 | | contribution that would be due under this Article if that | 24 | | participant's highest salary for annuity purposes were | 25 | | $106,800, plus any increases in that amount under Section | 26 | | 2-108.1. |
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| 1 | | (Source: P.A. 96-1490, eff. 1-1-11.)
| 2 | | (40 ILCS 5/14-103.40 new) | 3 | | Sec. 14-103.40. Tier I member. "Tier I member": A member of | 4 | | this System who first became a member or participant before | 5 | | January 1, 2011 under any reciprocal retirement system or | 6 | | pension fund established under this Code other than a | 7 | | retirement system or pension fund established under Article 2, | 8 | | 3, 4, 5, 6, or 18 of this Code.
| 9 | | (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
| 10 | | Sec. 14-133. Contributions on behalf of members.
| 11 | | (a) Each participating employee shall make contributions | 12 | | to the System,
based on the employee's compensation, as | 13 | | follows:
| 14 | | (1) Covered employees, except as indicated below, 3.5% | 15 | | for
retirement annuity, and 0.5% for a widow or survivors
| 16 | | annuity;
| 17 | | (2) Noncovered employees, except as indicated below, | 18 | | 7% for retirement
annuity and 1% for a widow or survivors | 19 | | annuity;
| 20 | | (3) Noncovered employees serving in a position in which | 21 | | "eligible
creditable service" as defined in Section 14-110 | 22 | | may be earned, 1% for a widow
or survivors annuity
plus the | 23 | | following amount for retirement annuity: 8.5% through | 24 | | December 31,
2001; 9.5% in 2002; 10.5% in 2003; and 11.5% |
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| 1 | | in 2004 and thereafter;
| 2 | | (4) Covered employees serving in a position in which | 3 | | "eligible creditable
service" as defined in Section 14-110 | 4 | | may be earned, 0.5% for a widow or survivors annuity
plus | 5 | | the following amount for retirement annuity: 5% through | 6 | | December 31,
2001; 6% in 2002; 7% in 2003; and 8% in 2004 | 7 | | and thereafter;
| 8 | | (5) Each security employee of the Department of | 9 | | Corrections
or of the Department of Human Services who is a | 10 | | covered employee, 0.5% for a widow or survivors annuity
| 11 | | plus the following amount for retirement annuity: 5% | 12 | | through December 31,
2001; 6% in 2002; 7% in 2003; and 8% | 13 | | in 2004 and thereafter;
| 14 | | (6) Each security employee of the Department of | 15 | | Corrections
or of the Department of Human Services who is | 16 | | not a covered employee, 1% for a widow or survivors annuity
| 17 | | plus the following amount for retirement annuity: 8.5% | 18 | | through December 31,
2001; 9.5% in 2002; 10.5% in 2003; and | 19 | | 11.5% in 2004 and thereafter.
| 20 | | (a-5) Beginning July 1, 2013, in addition to the | 21 | | contributions otherwise required under this Article, each Tier | 22 | | I member shall contribute toward the cost of his or her | 23 | | retirement annuity 3% of each payment
of compensation received | 24 | | by him or her for service as a member. | 25 | | (b) Contributions shall be in the form of a deduction from
| 26 | | compensation and shall be made notwithstanding that the |
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| 1 | | compensation
paid in cash to the employee shall be reduced | 2 | | thereby below the minimum
prescribed by law or regulation. Each | 3 | | member is deemed to consent and
agree to the deductions from | 4 | | compensation provided for in this Article,
and shall receipt in | 5 | | full for salary or compensation.
| 6 | | (Source: P.A. 92-14, eff. 6-28-01.)
| 7 | | (40 ILCS 5/15-107.1 new) | 8 | | Sec. 15-107.1. Tier I participant. "Tier I participant": A | 9 | | participant under this Article, other than a participant in the | 10 | | self-managed plan under Section 15-158.2, who first became a | 11 | | member or participant before January 1, 2011 under any | 12 | | reciprocal retirement system or pension fund established under | 13 | | this Code other than a retirement system or pension fund | 14 | | established under Article 2, 3, 4, 5, 6, or 18 of this Code.
| 15 | | (40 ILCS 5/15-136) (from Ch. 108 1/2, par. 15-136)
| 16 | | Sec. 15-136. Retirement annuities - Amount. The provisions | 17 | | of this
Section 15-136 apply only to those participants who are | 18 | | participating in the
traditional benefit package or the | 19 | | portable benefit package and do not
apply to participants who | 20 | | are participating in the self-managed plan.
| 21 | | (a) The amount of a participant's retirement annuity, | 22 | | expressed in the form
of a single-life annuity, shall be | 23 | | determined by whichever of the following
rules is applicable | 24 | | and provides the largest annuity:
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| 1 | | Rule 1: The retirement annuity shall be 1.67% of final rate | 2 | | of earnings for
each of the first 10 years of service, 1.90% | 3 | | for each of the next 10 years of
service, 2.10% for each year | 4 | | of service in excess of 20 but not exceeding 30,
and 2.30% for | 5 | | each year in excess of 30; or for persons who retire on or
| 6 | | after January 1, 1998, 2.2% of the final rate of earnings for | 7 | | each year of
service.
| 8 | | Rule 2: The retirement annuity shall be the sum of the | 9 | | following,
determined from amounts credited to the participant | 10 | | in accordance with the
actuarial tables and the effective rate | 11 | | of interest in effect at the
time the retirement annuity | 12 | | begins:
| 13 | | (i) the normal annuity which can be provided on an | 14 | | actuarially
equivalent basis, by the accumulated normal | 15 | | contributions as of
the date the annuity begins;
| 16 | | (ii) an annuity from employer contributions of an | 17 | | amount equal to that
which can be provided on an | 18 | | actuarially equivalent basis from the accumulated
normal | 19 | | contributions made by the participant under Section | 20 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other | 21 | | accumulated normal contributions made by
the participant; | 22 | | and
| 23 | | (iii) the annuity that can be provided on an | 24 | | actuarially equivalent basis
from the entire contribution | 25 | | made by the participant under Section 15-113.3.
| 26 | | For the purpose of calculating an annuity under this Rule |
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| 1 | | 2, the contribution required under subsection (c-5) of Section | 2 | | 15-157 shall not be considered when determining the | 3 | | participant's accumulated normal contributions under clause | 4 | | (i) or the employer contribution under clause (ii). | 5 | | With respect to a police officer or firefighter who retires | 6 | | on or after
August 14, 1998, the accumulated normal | 7 | | contributions taken into account under
clauses (i) and (ii) of | 8 | | this Rule 2 shall include the additional normal
contributions | 9 | | made by the police officer or firefighter under Section
| 10 | | 15-157(a).
| 11 | | The amount of a retirement annuity calculated under this | 12 | | Rule 2 shall
be computed solely on the basis of the | 13 | | participant's accumulated normal
contributions, as specified | 14 | | in this Rule and defined in Section 15-116.
Neither an employee | 15 | | or employer contribution for early retirement under
Section | 16 | | 15-136.2 nor any other employer contribution shall be used in | 17 | | the
calculation of the amount of a retirement annuity under | 18 | | this Rule 2.
| 19 | | This amendatory Act of the 91st General Assembly is a | 20 | | clarification of
existing law and applies to every participant | 21 | | and annuitant without regard to
whether status as an employee | 22 | | terminates before the effective date of this
amendatory Act.
| 23 | | This Rule 2 does not apply to a person who first becomes an | 24 | | employee under this Article on or after July 1, 2005.
| 25 | | Rule 3: The retirement annuity of a participant who is | 26 | | employed
at least one-half time during the period on which his |
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| 1 | | or her final rate of
earnings is based, shall be equal to the | 2 | | participant's years of service
not to exceed 30, multiplied by | 3 | | (1) $96 if the participant's final rate
of earnings is less | 4 | | than $3,500, (2) $108 if the final rate of earnings is
at least | 5 | | $3,500 but less than $4,500, (3) $120 if the final rate of | 6 | | earnings
is at least $4,500 but less than $5,500, (4) $132 if | 7 | | the final rate
of earnings is at least $5,500 but less than | 8 | | $6,500, (5)
$144 if the final rate of earnings is at least | 9 | | $6,500 but less than
$7,500, (6) $156 if the final rate of | 10 | | earnings is at least $7,500 but less
than $8,500, (7) $168 if | 11 | | the final rate of earnings is at least $8,500 but
less than | 12 | | $9,500, and (8) $180 if the final rate of earnings is $9,500 or
| 13 | | more, except that the annuity for those persons having made an | 14 | | election under
Section 15-154(a-1) shall be calculated and | 15 | | payable under the portable
retirement benefit program pursuant | 16 | | to the provisions of Section 15-136.4.
| 17 | | Rule 4: A participant who is at least age 50 and has 25 or | 18 | | more years of
service as a police officer or firefighter, and a | 19 | | participant who is age 55 or
over and has at least 20 but less | 20 | | than 25 years of service as a police officer
or firefighter, | 21 | | shall be entitled to a retirement annuity of 2 1/4% of the
| 22 | | final rate of earnings for each of the first 10 years of | 23 | | service as a police
officer or firefighter, 2 1/2% for each of | 24 | | the next 10 years of service as a
police officer or | 25 | | firefighter, and 2 3/4% for each year of service as a police
| 26 | | officer or firefighter in excess of 20. The retirement annuity |
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| 1 | | for all other
service shall be computed under Rule 1.
| 2 | | For purposes of this Rule 4, a participant's service as a | 3 | | firefighter
shall also include the following:
| 4 | | (i) service that is performed while the person is an | 5 | | employee under
subsection (h) of Section 15-107; and
| 6 | | (ii) in the case of an individual who was a | 7 | | participating employee
employed in the fire department of | 8 | | the University of Illinois's
Champaign-Urbana campus | 9 | | immediately prior to the elimination of that fire
| 10 | | department and who immediately after the elimination of | 11 | | that fire department
transferred to another job with the | 12 | | University of Illinois, service performed
as an employee of | 13 | | the University of Illinois in a position other than police
| 14 | | officer or firefighter, from the date of that transfer | 15 | | until the employee's
next termination of service with the | 16 | | University of Illinois.
| 17 | | Rule 5: The retirement annuity of a participant who elected | 18 | | early
retirement under the provisions of Section 15-136.2 and | 19 | | who, on or before
February 16, 1995, brought administrative | 20 | | proceedings pursuant to the
administrative rules adopted by the | 21 | | System to challenge the calculation of his
or her retirement | 22 | | annuity shall be the sum of the following, determined from
| 23 | | amounts credited to the participant in accordance with the | 24 | | actuarial tables and
the prescribed rate of interest in effect | 25 | | at the time the retirement annuity
begins:
| 26 | | (i) the normal annuity which can be provided on an |
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| 1 | | actuarially equivalent
basis, by the accumulated normal | 2 | | contributions as of the date the annuity
begins; and
| 3 | | (ii) an annuity from employer contributions of an | 4 | | amount equal to that
which can be provided on an | 5 | | actuarially equivalent basis from the accumulated
normal | 6 | | contributions made by the participant under Section | 7 | | 15-113.6 and Section
15-113.7 plus 1.4 times all other | 8 | | accumulated normal contributions made by the
participant; | 9 | | and
| 10 | | (iii) an annuity which can be provided on an | 11 | | actuarially equivalent basis
from the employee | 12 | | contribution for early retirement under Section 15-136.2, | 13 | | and
an annuity from employer contributions of an amount | 14 | | equal to that which can be
provided on an actuarially | 15 | | equivalent basis from the employee contribution for
early | 16 | | retirement under Section 15-136.2.
| 17 | | In no event shall a retirement annuity under this Rule 5 be | 18 | | lower than the
amount obtained by adding (1) the monthly amount | 19 | | obtained by dividing the
combined employee and employer | 20 | | contributions made under Section 15-136.2 by the
System's | 21 | | annuity factor for the age of the participant at the beginning | 22 | | of the
annuity payment period and (2) the amount equal to the | 23 | | participant's annuity if
calculated under Rule 1, reduced under | 24 | | Section 15-136(b) as if no
contributions had been made under | 25 | | Section 15-136.2.
| 26 | | With respect to a participant who is qualified for a |
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| 1 | | retirement annuity under
this Rule 5 whose retirement annuity | 2 | | began before the effective date of this
amendatory Act of the | 3 | | 91st General Assembly, and for whom an employee
contribution | 4 | | was made under Section 15-136.2, the System shall recalculate | 5 | | the
retirement annuity under this Rule 5 and shall pay any | 6 | | additional amounts due
in the manner provided in Section | 7 | | 15-186.1 for benefits mistakenly set too low.
| 8 | | The amount of a retirement annuity calculated under this | 9 | | Rule 5 shall be
computed solely on the basis of those | 10 | | contributions specifically set forth in
this Rule 5. Except as | 11 | | provided in clause (iii) of this Rule 5, neither an
employee | 12 | | nor employer contribution for early retirement under Section | 13 | | 15-136.2,
nor any other employer contribution, shall be used in | 14 | | the calculation of the
amount of a retirement annuity under | 15 | | this Rule 5.
| 16 | | The General Assembly has adopted the changes set forth in | 17 | | Section 25 of this
amendatory Act of the 91st General Assembly | 18 | | in recognition that the decision of
the Appellate Court for the | 19 | | Fourth District in Mattis v. State Universities
Retirement | 20 | | System et al. might be deemed to give some right to the | 21 | | plaintiff in
that case. The changes made by Section 25 of this | 22 | | amendatory Act of the 91st
General Assembly are a legislative | 23 | | implementation of the decision of the
Appellate Court for the | 24 | | Fourth District in Mattis v. State Universities
Retirement | 25 | | System et al. with respect to that plaintiff.
| 26 | | The changes made by Section 25 of this amendatory Act of |
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| 1 | | the 91st General
Assembly apply without regard to whether the | 2 | | person is in service as an
employee on or after its effective | 3 | | date.
| 4 | | (b) The retirement annuity provided under Rules 1 and 3 | 5 | | above shall be
reduced by 1/2 of 1% for each month the | 6 | | participant is under age 60 at the
time of retirement. However, | 7 | | this reduction shall not apply in the following
cases:
| 8 | | (1) For a disabled participant whose disability | 9 | | benefits have been
discontinued because he or she has | 10 | | exhausted eligibility for disability
benefits under clause | 11 | | (6) of Section 15-152;
| 12 | | (2) For a participant who has at least the number of | 13 | | years of service
required to retire at any age under | 14 | | subsection (a) of Section 15-135; or
| 15 | | (3) For that portion of a retirement annuity which has | 16 | | been provided on
account of service of the participant | 17 | | during periods when he or she performed
the duties of a | 18 | | police officer or firefighter, if these duties were | 19 | | performed
for at least 5 years immediately preceding the | 20 | | date the retirement annuity
is to begin.
| 21 | | (c) The maximum retirement annuity provided under Rules 1, | 22 | | 2, 4,
and 5
shall be the lesser of (1) the annual limit of | 23 | | benefits as specified in
Section 415 of the Internal Revenue | 24 | | Code of 1986, as such Section may be
amended from time to time | 25 | | and as such benefit limits shall be adjusted by
the | 26 | | Commissioner of Internal Revenue, and (2) 80% of final rate of
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| 1 | | earnings.
| 2 | | (d) An annuitant whose status as an employee terminates | 3 | | after August 14,
1969 shall receive automatic increases in his | 4 | | or her retirement annuity as
follows:
| 5 | | Effective January 1 immediately following the date the | 6 | | retirement annuity
begins, the annuitant shall receive an | 7 | | increase in his or her monthly
retirement annuity of 0.125% of | 8 | | the monthly retirement annuity provided under
Rule 1, Rule 2, | 9 | | Rule 3, Rule 4, or Rule 5, contained in this
Section, | 10 | | multiplied by
the number of full months which elapsed from the | 11 | | date the retirement annuity
payments began to January 1, 1972, | 12 | | plus 0.1667% of such annuity, multiplied by
the number of full | 13 | | months which elapsed from January 1, 1972, or the date the
| 14 | | retirement annuity payments began, whichever is later, to | 15 | | January 1, 1978, plus
0.25% of such annuity multiplied by the | 16 | | number of full months which elapsed
from January 1, 1978, or | 17 | | the date the retirement annuity payments began,
whichever is | 18 | | later, to the effective date of the increase.
| 19 | | The annuitant shall receive an increase in his or her | 20 | | monthly retirement
annuity on each January 1 thereafter during | 21 | | the annuitant's life of 3% of
the monthly annuity provided | 22 | | under Rule 1, Rule 2, Rule 3, Rule 4, or
Rule 5 contained
in | 23 | | this Section. The change made under this subsection by P.A. | 24 | | 81-970 is
effective January 1, 1980 and applies to each | 25 | | annuitant whose status as
an employee terminates before or | 26 | | after that date.
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| 1 | | Beginning January 1, 1990, all automatic annual increases | 2 | | payable under
this Section shall be calculated as a percentage | 3 | | of the total annuity
payable at the time of the increase, | 4 | | including all increases previously
granted under this Article.
| 5 | | The change made in this subsection by P.A. 85-1008 is | 6 | | effective January
26, 1988, and is applicable without regard to | 7 | | whether status as an employee
terminated before that date.
| 8 | | (e) If, on January 1, 1987, or the date the retirement | 9 | | annuity payment
period begins, whichever is later, the sum of | 10 | | the retirement annuity
provided under Rule 1 or Rule 2 of this | 11 | | Section
and the automatic annual increases provided under the | 12 | | preceding subsection
or Section 15-136.1, amounts to less than | 13 | | the retirement
annuity which would be provided by Rule 3, the | 14 | | retirement
annuity shall be increased as of January 1, 1987, or | 15 | | the date the
retirement annuity payment period begins, | 16 | | whichever is later, to the amount
which would be provided by | 17 | | Rule 3 of this Section. Such increased
amount shall be | 18 | | considered as the retirement annuity in determining
benefits | 19 | | provided under other Sections of this Article. This paragraph
| 20 | | applies without regard to whether status as an employee | 21 | | terminated before the
effective date of this amendatory Act of | 22 | | 1987, provided that the annuitant was
employed at least | 23 | | one-half time during the period on which the final rate of
| 24 | | earnings was based.
| 25 | | (f) A participant is entitled to such additional annuity as | 26 | | may be provided
on an actuarially equivalent basis, by any |
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| 1 | | accumulated
additional contributions to his or her credit. | 2 | | However,
the additional contributions made by the participant | 3 | | toward the automatic
increases in annuity provided under this | 4 | | Section and the contributions made under subsection (c-5) of | 5 | | Section 15-157 by this amendatory Act of the 98th General | 6 | | Assembly shall not be taken into
account in determining the | 7 | | amount of such additional annuity.
| 8 | | (g) If, (1) by law, a function of a governmental unit, as | 9 | | defined by Section
20-107 of this Code, is transferred in whole | 10 | | or in part to an employer, and (2)
a participant transfers | 11 | | employment from such governmental unit to such employer
within | 12 | | 6 months after the transfer of the function, and (3) the sum of | 13 | | (A) the
annuity payable to the participant under Rule 1, 2, or | 14 | | 3 of this Section (B)
all proportional annuities payable to the | 15 | | participant by all other retirement
systems covered by Article | 16 | | 20, and (C) the initial primary insurance amount to
which the | 17 | | participant is entitled under the Social Security Act, is less | 18 | | than
the retirement annuity which would have been payable if | 19 | | all of the
participant's pension credits validated under | 20 | | Section 20-109 had been validated
under this system, a | 21 | | supplemental annuity equal to the difference in such
amounts | 22 | | shall be payable to the participant.
| 23 | | (h) On January 1, 1981, an annuitant who was receiving
a | 24 | | retirement annuity on or before January 1, 1971 shall have his | 25 | | or her
retirement annuity then being paid increased $1 per | 26 | | month for
each year of creditable service. On January 1, 1982, |
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| 1 | | an annuitant whose
retirement annuity began on or before | 2 | | January 1, 1977, shall have his or her
retirement annuity then | 3 | | being paid increased $1 per month for each year of
creditable | 4 | | service.
| 5 | | (i) On January 1, 1987, any annuitant whose retirement | 6 | | annuity began on or
before January 1, 1977, shall have the | 7 | | monthly retirement annuity increased by
an amount equal to 8˘ | 8 | | per year of creditable service times the number of years
that | 9 | | have elapsed since the annuity began.
| 10 | | (Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
| 11 | | (40 ILCS 5/15-157) (from Ch. 108 1/2, par. 15-157)
| 12 | | Sec. 15-157. Employee Contributions.
| 13 | | (a) Each participating employee
shall make contributions | 14 | | towards the retirement
benefits payable under the retirement | 15 | | program applicable to the
employee from each payment
of | 16 | | earnings applicable to employment under this system on and | 17 | | after the
date of becoming a participant as follows: Prior to | 18 | | September 1, 1949,
3 1/2% of earnings; from September 1, 1949 | 19 | | to August 31, 1955, 5%; from
September 1, 1955 to August 31, | 20 | | 1969, 6%; from September 1, 1969, 6 1/2%.
These contributions | 21 | | are to be considered as normal contributions for purposes
of | 22 | | this Article.
| 23 | | Each participant who is a police officer or firefighter | 24 | | shall make normal
contributions of 8% of each payment of | 25 | | earnings applicable to employment as a
police officer or |
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| 1 | | firefighter under this system on or after September 1, 1981,
| 2 | | unless he or she files with the board within 60 days after the | 3 | | effective date
of this amendatory Act of 1991 or 60 days after | 4 | | the board receives notice that
he or she is employed as a | 5 | | police officer or firefighter, whichever is later,
a written | 6 | | notice waiving the retirement formula provided by Rule 4 of | 7 | | Section
15-136. This waiver shall be irrevocable. If a | 8 | | participant had met the
conditions set forth in Section | 9 | | 15-132.1 prior to the effective date of this
amendatory Act of | 10 | | 1991 but failed to make the additional normal contributions
| 11 | | required by this paragraph, he or she may elect to pay the | 12 | | additional
contributions plus compound interest at the | 13 | | effective rate. If such payment
is received by the board, the | 14 | | service shall be considered as police officer
service in | 15 | | calculating the retirement annuity under Rule 4 of Section | 16 | | 15-136.
While performing service described in clause (i) or | 17 | | (ii) of Rule 4 of Section
15-136, a participating employee | 18 | | shall be deemed to be employed as a
firefighter for the purpose | 19 | | of determining the rate of employee contributions
under this | 20 | | Section.
| 21 | | (b) Starting September 1, 1969, each participating | 22 | | employee shall make
additional contributions of 1/2 of 1% of | 23 | | earnings to finance a portion
of the cost of the annual | 24 | | increases in retirement annuity provided under
Section 15-136, | 25 | | except that with respect to participants in the
self-managed | 26 | | plan this additional contribution shall be used to finance the
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| 1 | | benefits obtained under that retirement program.
| 2 | | (c) In addition to the amounts described in subsections (a) | 3 | | and (b) of this
Section, each participating employee shall make | 4 | | contributions of 1% of earnings
applicable under this system on | 5 | | and after August 1, 1959. The contributions
made under this | 6 | | subsection (c) shall be considered as survivor's insurance
| 7 | | contributions for purposes of this Article if the employee is | 8 | | covered under
the traditional benefit package, and such | 9 | | contributions shall be considered
as additional contributions | 10 | | for purposes of this Article if the employee is
participating | 11 | | in the self-managed plan or has elected to participate in the
| 12 | | portable benefit package and has completed the applicable | 13 | | one-year waiting
period. Contributions in excess of $80 during | 14 | | any fiscal year beginning before
August 31, 1969 and in excess | 15 | | of $120 during any fiscal year thereafter until
September 1, | 16 | | 1971 shall be considered as additional contributions for | 17 | | purposes
of this Article.
| 18 | | (c-5) Beginning July 1, 2013, in addition to the | 19 | | contributions otherwise required under this Article, each Tier | 20 | | I participant other than a participant in the self-managed plan | 21 | | shall contribute 3% of each payment
of earnings applicable to | 22 | | employment under this System toward the retirement
benefits | 23 | | payable under the retirement program applicable to the
| 24 | | participant. | 25 | | (d) If the board by board rule so permits and subject to | 26 | | such conditions
and limitations as may be specified in its |
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| 1 | | rules, a participant may make
other additional contributions of | 2 | | such percentage of earnings or amounts as
the participant shall | 3 | | elect in a written notice thereof received by the board.
| 4 | | (e) That fraction of a participant's total accumulated | 5 | | normal
contributions, the numerator of which is equal to the | 6 | | number of years of
service in excess of that which is required | 7 | | to qualify for the maximum
retirement annuity, and the | 8 | | denominator of which is equal to the total
service of the | 9 | | participant, shall be considered as accumulated additional
| 10 | | contributions. The determination of the applicable maximum | 11 | | annuity and
the adjustment in contributions required by this | 12 | | provision shall be made
as of the date of the participant's | 13 | | retirement.
| 14 | | (f) Notwithstanding the foregoing, a participating | 15 | | employee shall not
be required to make contributions under this | 16 | | Section after the date upon
which continuance of such | 17 | | contributions would otherwise cause his or her
retirement | 18 | | annuity to exceed the maximum retirement annuity as specified | 19 | | in
clause (1) of subsection (c) of Section 15-136.
| 20 | | (g) A participating employee may make contributions for the | 21 | | purchase of
service credit under this Article.
| 22 | | (Source: P.A. 90-32, eff. 6-27-97; 90-65, eff. 7-7-97; 90-448, | 23 | | eff. 8-16-97;
90-511, eff. 8-22-97; 90-576, eff. 3-31-98; | 24 | | 90-655, eff. 7-30-98; 90-766, eff.
8-14-98.)
| 25 | | (40 ILCS 5/16-106.4 new) |
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| 1 | | Sec. 16-106.4. Tier I member. "Tier I member": A member | 2 | | under this Article who first became a member or participant | 3 | | before January 1, 2011 under any reciprocal retirement system | 4 | | or pension fund established under this Code other than a | 5 | | retirement system or pension fund established under Article 2, | 6 | | 3, 4, 5, 6, or 18 of this Code.
| 7 | | (40 ILCS 5/16-133) (from Ch. 108 1/2, par. 16-133)
| 8 | | Sec. 16-133. Retirement annuity; amount.
| 9 | | (a) The amount of the retirement annuity shall be (i) in | 10 | | the case of a person who first became a teacher under this | 11 | | Article before July 1, 2005, the larger of the
amounts | 12 | | determined under paragraphs (A) and (B) below, or (ii) in the | 13 | | case of a person who first becomes a teacher under this Article | 14 | | on or after July 1, 2005, the amount determined under the | 15 | | applicable provisions of paragraph (B):
| 16 | | (A) An amount consisting of the sum of the following:
| 17 | | (1) An amount that can be provided on an | 18 | | actuarially equivalent basis
by the member's | 19 | | accumulated contributions at the time of retirement; | 20 | | and
| 21 | | (2) The sum of (i) the amount that can be provided | 22 | | on an actuarially
equivalent basis by the member's | 23 | | accumulated contributions representing
service prior | 24 | | to July 1, 1947, and (ii) the amount that can be | 25 | | provided on
an actuarially equivalent basis by the |
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| 1 | | amount obtained by multiplying 1.4
times the member's | 2 | | accumulated contributions covering service subsequent | 3 | | to
June 30, 1947; and
| 4 | | (3) If there is prior service, 2 times the amount | 5 | | that would have been
determined under subparagraph (2) | 6 | | of paragraph (A) above on account of
contributions | 7 | | which would have been made during the period of prior | 8 | | service
creditable to the member had the System been in | 9 | | operation and had the
member made contributions at the | 10 | | contribution rate in effect prior to
July 1, 1947.
| 11 | | For the purpose of calculating the sum provided under | 12 | | this paragraph (A), the contribution required under | 13 | | subsection (a-5) of Section 16-152 shall not be considered | 14 | | when determining the amount of the member's accumulated | 15 | | contributions under subparagraph (1) or (2). | 16 | | This paragraph (A) does not apply to a person who first | 17 | | becomes a teacher under this Article on or after July 1, | 18 | | 2005.
| 19 | | (B) An amount consisting of the greater of the | 20 | | following:
| 21 | | (1) For creditable service earned before July 1, | 22 | | 1998 that has not
been augmented under Section | 23 | | 16-129.1: 1.67% of final average salary for
each of the | 24 | | first 10 years of creditable service, 1.90% of final | 25 | | average salary
for each year in excess of 10 but not | 26 | | exceeding 20, 2.10% of final average
salary for each |
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| 1 | | year in excess of 20 but not exceeding 30, and 2.30% of | 2 | | final
average salary for each year in excess of 30; and
| 3 | | For creditable service earned on or after July 1, | 4 | | 1998 by a member who
has at least 24 years of | 5 | | creditable service on July 1, 1998 and who
does not | 6 | | elect to augment service under Section 16-129.1: 2.2% | 7 | | of final
average salary for each year of creditable | 8 | | service earned on or after July 1,
1998 but before the | 9 | | member reaches a total of 30 years of creditable | 10 | | service
and 2.3% of final average salary for each year | 11 | | of creditable service earned
on or after July 1, 1998 | 12 | | and after the member reaches a total of 30 years of
| 13 | | creditable service; and
| 14 | | For all other creditable service: 2.2% of final | 15 | | average salary
for each year of creditable service; or
| 16 | | (2) 1.5% of final average salary for each year of
| 17 | | creditable service plus the sum $7.50 for each of the | 18 | | first 20 years of
creditable service.
| 19 | | The amount of the retirement annuity determined under this | 20 | | paragraph (B)
shall be reduced by 1/2 of 1% for each month | 21 | | that the member is less than
age 60 at the time the | 22 | | retirement annuity begins. However, this reduction
shall | 23 | | not apply (i) if the member has at least 35 years of | 24 | | creditable service,
or (ii) if the member retires on | 25 | | account of disability under Section 16-149.2
of this | 26 | | Article with at least 20 years of creditable service, or |
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| 1 | | (iii) if
the member (1) has earned during the period | 2 | | immediately preceding the last
day of service at least one | 3 | | year of contributing creditable service as an
employee of a | 4 | | department as defined in Section 14-103.04, (2) has earned | 5 | | at
least 5 years of contributing creditable service as an | 6 | | employee of a department
as defined in Section 14-103.04, | 7 | | (3) retires on or after January 1, 2001, and
(4) retires | 8 | | having attained an age which, when added to the number of | 9 | | years of
his or her total creditable service, equals at | 10 | | least 85. Portions of years
shall be counted as decimal | 11 | | equivalents.
| 12 | | (b) For purposes of this Section, final average salary | 13 | | shall be the
average salary for the highest 4 consecutive years | 14 | | within the last 10 years
of creditable service as determined | 15 | | under rules of the board. The minimum
final average salary | 16 | | shall be considered to be $2,400 per year.
| 17 | | In the determination of final average salary for members | 18 | | other than
elected officials and their appointees when such | 19 | | appointees are allowed by
statute, that part of a member's | 20 | | salary for any year beginning after June
30, 1979 which exceeds | 21 | | the member's annual full-time salary rate with the
same | 22 | | employer for the preceding year by more than 20% shall be | 23 | | excluded.
The exclusion shall not apply in any year in which | 24 | | the member's creditable
earnings are less than 50% of the | 25 | | preceding year's mean salary for downstate
teachers as | 26 | | determined by the survey of school district salaries provided |
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| 1 | | in
Section 2-3.103 of the School Code.
| 2 | | (c) In determining the amount of the retirement annuity | 3 | | under paragraph
(B) of this Section, a fractional year shall be | 4 | | granted proportional credit.
| 5 | | (d) The retirement annuity determined under paragraph (B) | 6 | | of this Section
shall be available only to members who render | 7 | | teaching service after July
1, 1947 for which member | 8 | | contributions are required, and to annuitants who
re-enter | 9 | | under the provisions of Section 16-150.
| 10 | | (e) The maximum retirement annuity provided under | 11 | | paragraph (B) of this
Section shall be 75% of final average | 12 | | salary.
| 13 | | (f) A member retiring after the effective date of this | 14 | | amendatory Act
of 1998 shall receive a pension equal to 75% of | 15 | | final average salary if the
member is qualified to receive a | 16 | | retirement annuity equal to at least 74.6%
of final average | 17 | | salary under this Article or as proportional annuities under
| 18 | | Article 20 of this Code.
| 19 | | (Source: P.A. 94-4, eff. 6-1-05.)
| 20 | | (40 ILCS 5/16-152) (from Ch. 108 1/2, par. 16-152)
| 21 | | Sec. 16-152. Contributions by members.
| 22 | | (a) Each member shall make contributions for membership | 23 | | service to this
System as follows:
| 24 | | (1) Effective July 1, 1998, contributions of 7.50% of | 25 | | salary towards the
cost of the retirement annuity. Such |
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| 1 | | contributions shall be deemed "normal
contributions".
| 2 | | (2) Effective July 1, 1969, contributions of 1/2 of 1% | 3 | | of salary toward
the cost of the automatic annual increase | 4 | | in retirement annuity provided
under Section 16-133.1.
| 5 | | (3) Effective July 24, 1959, contributions of 1% of | 6 | | salary towards the
cost of survivor benefits. Such | 7 | | contributions shall not be credited to
the individual | 8 | | account of the member and shall not be subject to refund
| 9 | | except as provided under Section 16-143.2.
| 10 | | (4) Effective July 1, 2005, contributions of 0.40% of | 11 | | salary toward the cost of the early retirement without | 12 | | discount option provided under Section 16-133.2. This | 13 | | contribution shall cease upon termination of the early | 14 | | retirement without discount option as provided in Section | 15 | | 16-176.
| 16 | | (a-5) Beginning July 1, 2013, in addition to the | 17 | | contributions otherwise required under this Article, each Tier | 18 | | I member shall contribute 3% of each payment
of salary received | 19 | | by him or her for service as a member toward the cost of his or | 20 | | her retirement annuity. | 21 | | (b) The minimum required contribution for any year of | 22 | | full-time
teaching service shall be $192.
| 23 | | (c) Contributions shall not be required of any annuitant | 24 | | receiving
a retirement annuity who is given employment as | 25 | | permitted under Section 16-118 or 16-150.1.
| 26 | | (d) A person who (i) was a member before July 1, 1998, (ii) |
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| 1 | | retires with
more than 34 years of creditable service, and | 2 | | (iii) does not elect to qualify
for the augmented rate under | 3 | | Section 16-129.1 shall be entitled, at the time
of retirement, | 4 | | to receive a partial refund of contributions made under this
| 5 | | Section for service occurring after the later of June 30, 1998 | 6 | | or attainment
of 34 years of creditable service, in an amount | 7 | | equal to 1.00% of the salary
upon which those contributions | 8 | | were based.
| 9 | | (e) A member's contributions toward the cost of early | 10 | | retirement without discount made under item (a)(4) of this | 11 | | Section shall not be refunded if the member has elected early | 12 | | retirement without discount under Section 16-133.2 and has | 13 | | begun to receive a retirement annuity under this Article | 14 | | calculated in accordance with that election. Otherwise, a | 15 | | member's contributions toward the cost of early retirement | 16 | | without discount made under item (a)(4) of this Section shall | 17 | | be refunded according to whichever one of the following | 18 | | circumstances occurs first: | 19 | | (1) The contributions shall be refunded to the member, | 20 | | without interest, within 120 days after the member's | 21 | | retirement annuity commences, if the member does not elect | 22 | | early retirement without discount under Section 16-133.2. | 23 | | (2) The contributions shall be included, without | 24 | | interest, in any refund claimed by the member under Section | 25 | | 16-151. | 26 | | (3) The contributions shall be refunded to the member's |
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| 1 | | designated beneficiary (or if there is no beneficiary, to | 2 | | the member's estate), without interest, if the member dies | 3 | | without having begun to receive a retirement annuity under | 4 | | this Article. | 5 | | (4) The contributions shall be refunded to the member, | 6 | | without interest, within 120 days after the early | 7 | | retirement without discount option provided under Section | 8 | | 16-133.2 is terminated under Section 16-176.
| 9 | | (Source: P.A. 93-320, eff. 7-23-03; 94-4, eff. 6-1-05.)".
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