State of Illinois
91st General Assembly
Legislation

   [ Search ]   [ Legislation ]
[ Home ]   [ Back ]   [ Bottom ]



91_HB0414

 
                                               LRB9100997EGfg

 1        AN  ACT  to  amend  the Illinois Pension Code by changing
 2    Sections 7-142, 7-144.2, 7-152, and 7-156 and  to  amend  the
 3    State Mandates Act.

 4        Be  it  enacted  by  the People of the State of Illinois,
 5    represented in the General Assembly:

 6        Section 5.  The  Illinois  Pension  Code  is  amended  by
 7    changing   Sections  7-142,  7-144.2,  7-152,  and  7-156  as
 8    follows:

 9        (40 ILCS 5/7-142) (from Ch. 108 1/2, par. 7-142)
10        Sec. 7-142.  Retirement annuities - Amount.
11        (a)  The amount of a retirement annuity shall be the  sum
12    of the following, determined in accordance with the actuarial
13    tables in effect at the time of the grant of the annuity:
14             1.  For  employees  with 8 or more years of service,
15        an annuity computed pursuant to subparagraphs a or  b  of
16        this  subparagraph  1,  whichever  is the higher, and for
17        employees with less than 8 years of service  the  annuity
18        computed pursuant to subparagraph a:
19                  a.  The  monthly  annuity which can be provided
20             from the total accumulated normal, municipality  and
21             prior service credits, as of the attained age of the
22             employee  on  the  date  the annuity begins provided
23             that such annuity shall not exceed 75% of the  final
24             rate of earnings of the employee.
25                  b.  (i)  The  monthly annuity amount determined
26             as follows by multiplying (a) 1 2/3% for  annuitants
27             with  not  more  than 15 years or (b) 1 2/3% for the
28             first 15 years and 2% for each year in excess of  15
29             years  for annuitants with more than 15 years by the
30             number of years plus fractional years, prorated on a
31             basis of months, of creditable service and  multiply
 
                            -2-                LRB9100997EGfg
 1             the  product thereof by the employee's final rate of
 2             earnings.
 3                  (ii)  For the sole  purpose  of  computing  the
 4             formula (and not for the purposes of the limitations
 5             hereinafter  stated)  $125  shall  be considered the
 6             final rate of earnings in all cases where the  final
 7             rate of earnings is less than such amount.
 8                  (iii)  The    monthly   annuity   computed   in
 9             accordance  with  this  subparagraph  b,  shall  not
10             exceed an amount equal to 75% of the final  rate  of
11             earnings.
12                  (iv)  For  employees  who who have less than 35
13             years of service, the annuity computed in accordance
14             with this subparagraph b (as reduced by  application
15             of  subparagraph  (iii)  above)  shall be reduced by
16             0.25% thereof (0.5% if service was terminated before
17             January 1, 1988) for each month or fraction  thereof
18             (1)  that  the employee's age is less than 60 years,
19             or (2) if the employee has  at  least  30  years  of
20             service  credit,  that the employee's service credit
21             is less than 35 years, whichever  is  less,  on  the
22             date the annuity begins.
23             2.  The annuity which can be provided from the total
24        accumulated  additional credits as of the attained age of
25        the employee on the date the annuity begins.
26        (b)  If  payment  of  an  annuity  begins  prior  to  the
27    earliest age at which the employee will become  eligible  for
28    an  old  age  insurance  benefit  under  the  Federal  Social
29    Security  Act,  he  may  elect that the annuity payments from
30    this fund shall exceed those payable after his attaining such
31    age by an amount, computed as  determined  by  rules  of  the
32    Board,  but  not  in  excess of his estimated Social Security
33    Benefit, determined as of the effective date of the  annuity,
34    provided  that  in  no  case shall the total annuity payments
 
                            -3-                LRB9100997EGfg
 1    made by this fund exceed in actuarial value the annuity which
 2    would have been payable had no such election been made.
 3        (c)  The retirement annuity shall be increased each  year
 4    by  2%,  not  compounded,  of  the monthly amount of annuity,
 5    taking into consideration any adjustment under paragraph  (b)
 6    of  this  Section.   This  increase  shall  be effective each
 7    January 1  and  computed  from  the  effective  date  of  the
 8    retirement  annuity,  the  first  increase being .167% of the
 9    monthly amount times the number of months from the  effective
10    date  to  January  1.   Beginning  January  1, 1984 and until
11    January 1, 2000 thereafter, the retirement annuity  shall  be
12    increased by 3% each year, not compounded.  Beginning January
13    1,  2000,  all  increases under this subsection following the
14    initial increase shall be at the rate of 3% of the  currently
15    payable  monthly  annuity, including any increases previously
16    granted under this Article.  The change  in  this  subsection
17    made  by  this amendatory Act of the 91st General Assembly is
18    not limited to persons in service on or after  the  effective
19    date of this amendatory Act.
20        This  increase  shall not be applicable to annuitants who
21    are not in service on or after September 8, 1971.
22    (Source: P.A. 87-850; revised 10-31-98.)

23        (40 ILCS 5/7-144.2) (from Ch. 108 1/2, par. 7-144.2)
24        Sec.  7-144.2.  Incremental  retirement  annuity.    Each
25    employee  annuitant  who  terminated  service  prior  to  the
26    effective  date of this amendatory Act of 1971 is entitled to
27    receive a monthly incremental retirement  annuity,  effective
28    January  1,  1972, of .167% of his monthly retirement annuity
29    amount, multiplied by the number of months from the effective
30    date of  his  annuity  to  January  1,  1972.   This  monthly
31    incremental  annuity  shall  be  increased  on each January 1
32    thereafter during the lifetime of the annuitant by 2% of  the
33    monthly retirement annuity amount.  Beginning January 1, 1984
 
                            -4-                LRB9100997EGfg
 1    and  each  January  1  thereafter,  the  monthly  incremental
 2    annuity  shall  be  increased by 3% of the monthly retirement
 3    annuity amount.
 4        The incremental annuity is payable only if the  annuitant
 5    agrees  to  pay the fund an amount equal to 1% of 1/12 of his
 6    annual final rate of earnings, determined as of the  date  of
 7    his  retirement,  multiplied  by  the number of full years of
 8    service.  The annuitant,  prior  to  December  1,  1971,  may
 9    authorize  the fund to deduct the payment from his annuity if
10    the total payment can be  deducted  in  one  month.   If  the
11    agreement  or  payment  is  received  by  the  fund  prior to
12    December 1, 1971, the incremental annuity shall be  effective
13    January 1, 1972.  If the agreement or payment is not received
14    before  December  1,  1971,  the incremental annuity shall be
15    effective the first day of the next month  after  receipt  of
16    payment  by the fund, but if received after the 15th day, the
17    first day of the month following the next  month,  and  shall
18    not be paid retroactively.
19        Until  January  1,  2000,  the monthly retirement annuity
20    amount, for the purpose of this Section, shall be the annuity
21    amount initially awarded or, if adjusted under paragraph  (b)
22    of  Section  7-142,  the  adjusted  amount,  disregarding any
23    incremental annuities previously granted.  Beginning  January
24    1,  2000,  the  monthly  retirement  annuity  amount, for the
25    purpose of this  Section,  shall  be  the  currently  payable
26    annuity amount, including any adjustments under paragraph (b)
27    of  Section  7-142  and  any incremental annuities previously
28    granted.  The change in this Section made by this  amendatory
29    Act of the 91st General Assembly is not limited to persons in
30    service  on  or  after  the effective date of this amendatory
31    Act.
32    (Source: P.A. 83-664.)

33        (40 ILCS 5/7-152) (from Ch. 108 1/2, par. 7-152)
 
                            -5-                LRB9100997EGfg
 1        Sec. 7-152.  Disability benefits - Amount.  The amount of
 2    the monthly temporary  and  total  and  permanent  disability
 3    benefits  shall  be 50% of the participating employee's final
 4    rate of earnings on the date disability was incurred, subject
 5    to the following adjustments:
 6        (a)  If the participating employee has a reduced rate  of
 7    earnings  at  the  time  his  employment  ceases  because  of
 8    disability,  the  rate  of  earnings shall be computed on the
 9    basis of his last 12 month period of full-time employment.
10        (b)  If the participating  employee  is  eligible  for  a
11    disability benefit under the federal Social Security Act, the
12    amount  of  monthly disability benefits shall be reduced, but
13    not to less than $10 a month,  by  the  amount  he  would  be
14    eligible to receive as a disability benefit under the federal
15    Social  Security  Act, whether or not because of service as a
16    covered employee under this Article.  The reduction shall  be
17    effective as of the month the employee is eligible for Social
18    Security  disability  benefits.   The  Board  may  make  such
19    reduction  if it appears that the employee may be so eligible
20    pending determination of eligibility and make an  appropriate
21    adjustment  if  necessary  after  such determination.  If the
22    employee, because of his  refusal  to  accept  rehabilitation
23    services  under the federal Rehabilitation Act of 1973 or the
24    federal Social Security  Act,  or  because  he  is  receiving
25    workers'  compensation  benefits,  has  his  Social  Security
26    benefits  reduced or terminated, the disability benefit shall
27    be reduced as if the employee were receiving his full  Social
28    Security disability benefit.
29        (c)  If the employee is over age 65, was not eligible for
30    a  Social Security benefit immediately before reaching age 65
31    and is eligible  for  a  Social  Security  old-age  insurance
32    benefit,  the  amount of the monthly disability benefit shall
33    be reduced, but not to less than $10 a month, by  the  amount
34    of  the  old-age  insurance  benefit to which the employee is
 
                            -6-                LRB9100997EGfg
 1    entitled whether or not the employee applies for  the  Social
 2    Security  old-age insurance benefit.  This reduction shall be
 3    made in the month after  the  month  in  which  the  employee
 4    attains  age  65.   However,  if the employee was receiving a
 5    Social Security disability benefit before  reaching  age  65,
 6    the  disability  benefits  after  age  65 shall be determined
 7    under subsection (b) of this Section.
 8        (d)  The amount  of  disability  benefits  shall  not  be
 9    reduced  by  reason of any increase, other than one resulting
10    from a correction in the  employee's  wage  records,  in  the
11    amount  of disability or old-age insurance benefits under the
12    Federal Social Security Act  which  takes  effect  after  the
13    month  of the initial reduction under paragraph (b) or (c) of
14    this Section.
15        (e)  If the employee in any month  receives  compensation
16    from  gainful  employment which is more than 25% of the final
17    rate of earnings on which his disability benefits are  based,
18    the temporary disability benefit payable for that month shall
19    be reduced by an amount equal to such excess.
20        (f)  An  employee  who  has been disabled for at least 30
21    days may return to work for the employer on a part-time basis
22    for a trial work period of up to one year, during  which  the
23    disability shall be deemed to continue.  Service credit shall
24    continue  to accrue and the disability benefit shall continue
25    to be paid during the trial  work  period,  but  the  benefit
26    shall  be  reduced  by the amount of earnings received by the
27    disabled employee.  Return to service on  a  full-time  basis
28    shall  terminate  the trial work period.  The reduction under
29    this subsection (f) shall be in lieu  of  the  reduction,  if
30    any, required under subsection (e).
31        (g)  Beginning January 1, 1988, every total and permanent
32    disability  benefit  shall be increased by 3% of the original
33    amount of the benefit, not  compounded,  on  each  January  1
34    following  the  later of (1) the date the total and permanent
 
                            -7-                LRB9100997EGfg
 1    disability benefit begins, or (2)  the  date  the  total  and
 2    permanent disability benefit would have begun if the employee
 3    had  been  paid a temporary disability benefit for 30 months.
 4    Beginning  January  1,  2000,  all   increases   under   this
 5    subsection  following  the  initial  increase shall be at the
 6    rate  of  3%  of  the  currently  payable  monthly   annuity,
 7    including   any   increases  previously  granted  under  this
 8    Article.   The  change  in  this  subsection  made  by   this
 9    amendatory Act of the 91st General Assembly is not limited to
10    persons  in  service  on  or after the effective date of this
11    amendatory Act.
12    (Source: P.A. 87-740.)

13        (40 ILCS 5/7-156) (from Ch. 108 1/2, par. 7-156)
14        Sec. 7-156.  Surviving spouse annuities - amount.
15        (a)  The amount of surviving spouse annuity shall be:
16        1.  Upon the death  of  an  employee  annuitant  or  such
17    person entitled, upon application, to a retirement annuity at
18    date  of  death, (i) an amount equal to 1/2 of the retirement
19    annuity which was or would have been payable exclusive of the
20    amount so payable which was provided from additional credits,
21    and disregarding any election made  under  paragraph  (b)  of
22    Section  7-142,  plus (ii) an annuity which could be provided
23    at the then attained age of the surviving  spouse  and  under
24    actuarial  tables  then  in  effect,  from  the excess of the
25    additional credits,  (excluding  any  such  credits  used  to
26    create  a  reversionary  annuity) used to provide the annuity
27    granted pursuant to paragraph (a) (2)  of  Section  7-142  of
28    this  article  over  the total annuity payments made pursuant
29    thereto.
30        2.  Upon the death of  a  participating  employee  on  or
31    after  attainment  of  age  55, an amount equal to 1/2 of the
32    retirement annuity which he could have had as of the date  of
33    death  had he then retired and applied for annuity, exclusive
 
                            -8-                LRB9100997EGfg
 1    of the portion thereof which could have  been  provided  from
 2    additional credits, and disregarding paragraph (b) of Section
 3    7-142,  plus  an  amount  equal to the annuity which could be
 4    provided from the total of his accumulated additional credits
 5    at date of death, on the basis of the  attained  age  of  the
 6    surviving spouse on such date.
 7        3.  Upon the death of a participating employee before age
 8    55, an amount equal to 1/2 of the retirement annuity which he
 9    could  have  had as of his attained age on the date of death,
10    had  he  then  retired  and  applied  for  annuity,  and  the
11    provisions of this Article that no such annuity  shall  begin
12    until  the  employee  has  attained  at least age 55 were not
13    applicable, exclusive of the portion thereof which could have
14    been  provided  from  additional  credits  and   disregarding
15    paragraph  (b)  of Section 7-142, plus an amount equal to the
16    annuity which  could  be  provided  from  the  total  of  his
17    accumulated additional credits at date of death, on the basis
18    of the attained age of the surviving spouse on such date.
19        If  a  surviving spouse is more than 5 years younger than
20    the deceased, that portion of the annuity which is not  based
21    on  additional  credits  shall be reduced in the ratio of the
22    value of a life annuity of $1 per year at an age of  5  years
23    less than the attained age of the deceased, at the earlier of
24    the  date  of  the  death  or the date his retirement annuity
25    begins, to the value of a life annuity of $1 per year at  the
26    attained  age of the surviving spouse on such date, according
27    to actuarial tables approved by the Board.
28        In computing the amount of a  surviving  spouse  annuity,
29    incremental  increases of retirement annuities to the date of
30    death of the employee annuitant shall be considered.
31        (b)  Each surviving spouse annuity payable on January  1,
32    1988  shall  be  increased on that date by 3% of the original
33    amount of the annuity.  Each surviving  spouse  annuity  that
34    begins  after  January  1,  1988  shall  be  increased on the
 
                            -9-                LRB9100997EGfg
 1    January 1 next occurring after  the  annuity  begins,  by  an
 2    amount  equal to (i) 3% of the original amount thereof if the
 3    deceased employee was receiving a retirement annuity  at  the
 4    time  of  his  death;  otherwise  (ii) 0.167% of the original
 5    amount thereof for each  complete  month  which  has  elapsed
 6    since the date the annuity began.
 7        On  each January 1 after the date of the initial increase
 8    under this subsection, each surviving spouse annuity shall be
 9    increased by 3% of  the  originally  granted  amount  of  the
10    annuity.    However, beginning January 1, 2000, all increases
11    under this subsection following the initial increase shall be
12    at the rate of 3% of the currently payable  monthly  annuity,
13    including   any   increases  previously  granted  under  this
14    Article.   The  change  in  this  subsection  made  by   this
15    amendatory Act of the 91st General Assembly is not limited to
16    survivors  of  persons  in  service on or after the effective
17    date of this amendatory Act.
18    (Source: P.A. 85-941.)

19        Section 90.  The State Mandates Act is amended by  adding
20    Section 8.23 as follows:

21        (30 ILCS 805/8.23 new)
22        Sec.  8.23.  Exempt  mandate.  Notwithstanding Sections 6
23    and 8 of this Act, no reimbursement by the State is  required
24    for  the  implementation  of  any  mandate  created  by  this
25    amendatory Act of the 91st General Assembly.

26        Section  99.  Effective date.  This Act takes effect upon
27    becoming law.

[ Top ]