State of Illinois
90th General Assembly
Legislation

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90_SB0335

      40 ILCS 5/5-132           from Ch. 108 1/2, par. 5-132
      30 ILCS 805/8.21 new
          Amends the Chicago Police Article of the Pension Code  to
      base  retirement  benefits  on  the highest 36 months, rather
      than 4 years, of salary within the last 10 years of  service,
      for  persons  retiring  after  December 31, 1997.  Amends the
      State  Mandates  Act  to   require   implementation   without
      reimbursement.  Effective immediately.
                                                     LRB9002272EGfg
                                               LRB9002272EGfg
 1        AN  ACT  to  amend  the Illinois Pension Code by changing
 2    Section 5-132 and to amend the State Mandates Act.
 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 Section 5-132 as follows:
 7        (40 ILCS 5/5-132) (from Ch. 108 1/2, par. 5-132)
 8        Sec. 5-132. Minimum annuity.  Any policeman who withdraws
 9    on or after July 8, 1957, or any policeman transferred to the
10    police service of the city under the  Exchange  of  Functions
11    Act  of  1957  who withdraws on or after July 17, 1959, after
12    completing at least 20 years of service, for whom the annuity
13    otherwise provided in this Article is less than  that  stated
14    in this Section, has a right to receive annuity as follows:
15        (a)  If  he  is age 55 or more on withdrawal, his annuity
16    after such withdrawal, shall be equal to 2%  of  the  average
17    salary for 4 consecutive years of highest salaries within the
18    last  10 years of service before withdrawal, for each year of
19    service, together with 1/6 of 1% of such average  salary  for
20    each  complete  month of service of each fractional year, but
21    not in excess of 75% of the average annual salary.
22        (b)  If he is age 50 or more but  less  than  age  55  on
23    withdrawal,  his  annuity shall be equal to 2% of the average
24    salary for the 4 highest consecutive years  of  the  last  10
25    years of service for each year of service, together with 1/16
26    of  1%  of  such  average  salary  for  each  month  of  each
27    fractional  year  of  service,  reduced by 1/2 of 1% for each
28    month that he is less than age 55.
29        (c)  If he is less than age 50  on  withdrawal,  he  may,
30    upon  attainment  of  age  50 or over, become entitled to the
31    annuity provided in this Section or, he may, upon application
                            -2-                LRB9002272EGfg
 1    before age 50,  receive  a  refund  of  the  deductions  from
 2    salary,  plus  interest at 1 1/2% per annum if he is entitled
 3    to refund under Section 5-163.
 4        (d)  In lieu of the annuity  provided  in  the  foregoing
 5    provisions  of this Section 5-132 any policeman who withdraws
 6    from the  service  after  December  31,  1973,  after  having
 7    attained  age  53  in  the  service  with 23 or more years of
 8    service credit shall be entitled to an  annuity  computed  as
 9    follows  if such annuity is greater than that provided in the
10    foregoing paragraphs of this Section 5-132: An annuity  equal
11    to  50%  of  the average salary for the 4 highest consecutive
12    years of the last 10 years of service plus additional annuity
13    equal to 2% of such average salary for each completed year of
14    service or fraction thereof rendered after his attainment  of
15    age 53 and the completion of 23 years of service.
16        Any policeman who has completed 23 years of service prior
17    to  his  attainment of age 53 in the service and continues in
18    the service until his attainment of age 53 shall  have  added
19    to  his  annuity,  computed  as  provided  in the immediately
20    preceding paragraph, an additional annuity  equal  to  1%  of
21    such  average  salary  for  each completed year of service or
22    fraction thereof in excess of 23 years up to age 53.
23        (e)  In lieu of the annuity  provided  in  the  foregoing
24    provisions  of this Section, any policeman who withdraws from
25    the service either (i) after December 31, 1983 with at  least
26    22  years of service credit and having attained age 52 in the
27    service, or (ii) after December 31, 1984  with  at  least  21
28    years  of  service  credit  and having attained age 51 in the
29    service, or (iii) after December 31, 1985 with  at  least  20
30    years  of  service  credit  and having attained age 50 in the
31    service, or (iv) after December 31, 1990, with  at  least  20
32    years  of service credit regardless of age, shall be entitled
33    to an annuity to begin not earlier than  upon  attainment  of
34    age  50 if under such age at withdrawal, computed as follows:
                            -3-                LRB9002272EGfg
 1    an annuity equal to 50% of  the  average  salary  for  the  4
 2    highest  consecutive  years  of the last 10 years of service,
 3    plus additional annuity equal to 2% of  such  average  salary
 4    for  each  completed  year  of  service  or  fraction thereof
 5    rendered after his completion of the minimum number of  years
 6    of  service  required  for  him  to  be  eligible  under this
 7    subsection (e). However,  the  annuity  provided  under  this
 8    subsection (e) may not exceed 75% of such average salary.
 9        (f)  A  policeman  withdrawing  after  September 1, 1969,
10    may, in addition, be entitled to  the  benefits  provided  by
11    Section 5-167.1 of this Article if he so qualifies under that
12    Section.
13        If,  on  withdrawal, total service is less than 20 years,
14    the policeman shall not be entitled to an annuity under  this
15    Section but may receive an annuity under the other provisions
16    of  this Article or, if entitled thereto under Section 5-163,
17    a refund of the deductions from  salary,  including,  in  the
18    case  of  policemen  transferred to the police service of the
19    city under  the  Exchange  of  Functions  Act  of  1957,  the
20    additional  contribution  paid on salary received from August
21    1,  1957,  to  July  17,  1959,  as  provided  in  the   Park
22    Policemen's Annuity Act, together with interest at 1 1/2% per
23    annum.
24        Moneys  voluntarily  contributed  under  the  Policemen's
25    Annuity  and Benefit Fund Act of the Illinois Municipal Code,
26    or the Park Policemen's Annuity Act, shall be refunded to the
27    contributing policemen who were  in  service  on  January  1,
28    1954,  or  in the case of policemen transferred to the police
29    service of the city under the Exchange of  Functions  Act  of
30    1957, who were in service on July 17, 1959.
31        The age and service annuity formula in this Section shall
32    not apply to any policeman who, having retired before July 8,
33    1957,  or  before  July  17, 1959, in the case of a policeman
34    transferred under the provisions of the Exchange of Functions
                            -4-                LRB9002272EGfg
 1    Act of 1957, re-enters the police service after  such  dates,
 2    whichever are applicable.
 3        (g)  For  the  purpose  of this Section, "average salary"
 4    means:
 5             (1)  for a policeman withdrawing from service before
 6        January 1, 1998, the average of the highest 4 consecutive
 7        years of salary within the last 10 years of service;
 8             (2)  for a policeman withdrawing from service on  or
 9        after  January  1,  1998,  the  average of the highest 36
10        consecutive months of salary within the last 10 years  of
11        service.
12    (Source: P.A. 86-1488.)
13        Section  90.  The State Mandates Act is amended by adding
14    Section 8.21 as follows:
15        (30 ILCS 805/8.21 new)
16        Sec. 8.21. Exempt mandate.   Notwithstanding  Sections  6
17    and  8 of this Act, no reimbursement by the State is required
18    for  the  implementation  of  any  mandate  created  by  this
19    amendatory Act of 1997.
20        Section 99. Effective date.  This Act takes  effect  upon
21    becoming law.

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