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90_HB2561 40 ILCS 5/18-125 from Ch. 108 1/2, par. 18-125 40 ILCS 5/18-133 from Ch. 108 1/2, par. 18-133 Amends the Judges Article of the Pension Code. Reduces the amount of the early retirement penalty for certain judges who retire before attaining age 60. Also provides that a judge who receives an increase in salary after making an election to stop contributing to the System may have the increase included in the calculation of his or her pension by making contributions on just the amount of the increase. Effective immediately. LRB9008715EGfg LRB9008715EGfg 1 AN ACT to amend the Illinois Pension Code by changing 2 Sections 18-125 and 18-133. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Illinois Pension Code is amended by 6 changing Sections 18-125 and 18-133 as follows: 7 (40 ILCS 5/18-125) (from Ch. 108 1/2, par. 18-125) 8 Sec. 18-125. Retirement annuity amount. 9 (a) The annual retirement annuity for a participant who 10 terminated service as a judge prior to July 1, 1971 shall be 11 based on the law in effect at the time of termination of 12 service. 13 (b) Effective July 1, 1971, the retirement annuity for 14 any participant in service on or after such date shall be 3 15 1/2% of final average salary, as defined in this Section, for 16 each of the first 10 years of service, and 5% of such final 17 average salary for each year of service on excess of 10. 18 For purposes of this Section, final average salary shall 19 be: 20 (1) the average salary for the last 4 years of 21 credited service as a judge for a participant who 22 terminates service before July 1, 1975. 23 (2) for a participant who terminates service after 24 June 30, 1975 and before July 1, 1982, the salary on the 25 last day of employment as a judge. 26 (3) for any participant who terminates service 27 after June 30, 1982 and before January 1, 1990, the 28 average salary for the final year of service as a judge. 29 (4) for a participant who terminates service on or 30 after January 1, 1990 but before the effective date of 31 this amendatory Act of 1995, the salary on the last day -2- LRB9008715EGfg 1 of employment as a judge. 2 (5) for a participant who terminates service on or 3 after the effective date of this amendatory Act of 1995, 4 the salary on the last day of employment as a judge, or 5 the highest salary received by the participant for 6 employment as a judge in a position held by the 7 participant for at least 4 consecutive years, whichever 8 is greater. 9 However, in the case of a participant who elects to 10 discontinue contributions as provided in Section 18-133, the 11 time of such election shall be considered the last day of 12 employment in the determination of final average salary under 13 this subsection, except as otherwise provided in subdivision 14 (a)(3) of that Section. 15 The maximum retirement annuity for any participant shall 16 be 85% of final average salary. 17 (c) The retirement annuity for a participant who retires 18 prior to age 60 with less than 28 years of service in the 19 System shall be reduced 1/2 of 1% for each month that the 20 participant's age is under 60 years at the time the annuity 21 commences. However, for a participant who retires on or 22 after the effective date of this amendatory Act of 1998, the 23 percentage reduction in retirement annuity imposed under this 24 subsection shall be reduced by 5/12 of 1% for every month of 25 service in excess of 20 years, and therefore a participant 26 with at least 26 years of service may retire at age 55 27 without any reduction in annuity. 28 The reduction in retirement annuity imposed by this 29 subsection shall not apply in the case of retirement on 30 account of disability. 31 (Source: P.A. 89-136, eff. 7-14-95.) 32 (40 ILCS 5/18-133) (from Ch. 108 1/2, par. 18-133) 33 Sec. 18-133. Financing; employee contributions. -3- LRB9008715EGfg 1 (a) Effective July 1, 1967, each participant is required 2 to contribute 7 1/2% of each payment of salary toward the 3 retirement annuity. Such contributions shall continue during 4 the entire time the participant is in service, with the 5 following exceptions: 6 (1) Contributions for the retirement annuity are 7 not required on salary received after 18 years of service 8 by persons who were participants before January 2, 1954. 9 (2) A participant who continues to serve as a judge 10 after becoming eligible to receive the maximum rate of 11 annuity may elect, through a written direction filed with 12 the Board, to discontinue contributing to the System. 13 Except as provided in subdivision (a)(3), any such option 14 elected by a judge shall be irrevocable unless prior to 15 July 1, 1996, and while continuing to serve as judge, the 16 judge (A) files with the Board a letter cancelling the 17 direction to discontinue contributing to the System and 18 requesting that such contributing resume, and (B) pays 19 into the System an amount equal to the total of the 20 discontinued contributions plus interest thereon at 5% 21 per annum. Service credits earned in any other 22 "participating system" as defined in Article 20 of this 23 Code shall be considered for purposes of determining a 24 judge's eligibility to discontinue contributions under 25 this subdivision (a)(2). 26 (3) A participant who has elected to discontinue 27 contributing to the System under subdivision (a)(2) and 28 who receives an increase in salary while continuing to 29 serve as a judge may elect, through a written direction 30 filed with the Board, to make contributions to the System 31 based only upon the amount of the increase in salary. If 32 the judge makes contributions on the amount of the 33 increase for the entire period during which that increase 34 is received by the judge, then that increase in salary -4- LRB9008715EGfg 1 shall be included in the calculation of final average 2 salary under Section 18-125. 3 (b) Beginning July 1, 1969, each participant is required 4 to contribute 1% of each payment of salary towards the 5 automatic increase in annuity provided in Section 18-125.1. 6 However, such contributions need not be made by any 7 participant who has elected prior to September 15, 1969, not 8 to be subject to the automatic increase in annuity 9 provisions. 10 (c) Effective July 13, 1953, each married participant 11 subject to the survivor's annuity provisions is required to 12 contribute 2 1/2% of each payment of salary, whether or not 13 he or she is required to make any other contributions under 14 this Section. Such contributions shall be made concurrently 15 with the contributions made for annuity purposes. 16 (Source: P.A. 89-136, eff. 7-14-95.) 17 Section 99. Effective date. This Act takes effect upon 18 becoming law.
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