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91_HB1373
LRB9101516EGfg
1 AN ACT to amend the Illinois Pension Code by adding
2 Sections 14-103.40 and 14-110.1 and changing Sections 14-110
3 and 14-114.
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 adding Sections 14-103.40 and 14-110.1 and changing Sections
8 14-110 and 14-114 as follows:
9 (40 ILCS 5/14-103.40 new)
10 Sec. 14-103.40. Deferred Retirement Option Plan.
11 "Deferred Retirement Option Plan" or "DROP plan" means the
12 Deferred Retirement Option Plan established under Section
13 14-110.1.
14 (40 ILCS 5/14-110) (from Ch. 108 1/2, par. 14-110)
15 Sec. 14-110. Alternative retirement annuity.
16 (a) Any member who has withdrawn from service with not
17 less than 20 years of eligible creditable service and has
18 attained age 55, and any member who has withdrawn from
19 service with not less than 25 years of eligible creditable
20 service and has attained age 50, regardless of whether the
21 attainment of either of the specified ages occurs while the
22 member is still in service, shall be entitled to receive at
23 the option of the member, in lieu of the regular or minimum
24 retirement annuity, a retirement annuity computed as
25 follows:
26 (i) for periods of service as a noncovered
27 employee, 2 1/4% of final average compensation for each
28 of the first 10 years of creditable service, 2 1/2% for
29 each year above 10 years to and including 20 years of
30 creditable service, and 2 3/4% for each year of
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1 creditable service above 20 years; and
2 (ii) for periods of eligible creditable service as
3 a covered employee, 1.67% of final average compensation
4 for each of the first 10 years of such service, 1.90% for
5 each of the next 10 years of such service, 2.10% for each
6 year of such service in excess of 20 but not exceeding
7 30, and 2.30% for each year in excess of 30.
8 Such annuity shall be subject to a maximum of 75% of
9 final average compensation. These rates shall not be
10 applicable to any service performed by a member as a covered
11 employee which is not eligible creditable service. Service
12 as a covered employee which is not eligible creditable
13 service shall be subject to the rates and provisions of
14 Section 14-108.
15 For an employee who retires under this Section at the
16 conclusion of participation in the DROP plan, calculation of
17 the amount of the retirement annuity, including any portion
18 of the annuity calculated under Section 14-108, shall be
19 based on the employee's final average compensation and
20 accumulated service as of the date he or she began
21 participation in the DROP plan and shall include any annual
22 increases that would have accrued under Section 14-114 if the
23 employee had retired on that date.
24 (b) For the purpose of this Section, "eligible
25 creditable service" means creditable service resulting from
26 service in one or more of the following positions:
27 (1) State policeman;
28 (2) fire fighter in the fire protection service of
29 a department;
30 (3) air pilot;
31 (4) special agent;
32 (5) investigator for the Secretary of State;
33 (6) conservation police officer;
34 (7) investigator for the Department of Revenue;
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1 (8) security employee of the Department of Human
2 Services;
3 (9) Central Management Services security police
4 officer;
5 (10) security employee of the Department of
6 Corrections;
7 (11) dangerous drugs investigator;
8 (12) investigator for the Department of State
9 Police;
10 (13) investigator for the Office of the Attorney
11 General;
12 (14) controlled substance inspector;
13 (15) investigator for the Office of the State's
14 Attorneys Appellate Prosecutor;
15 (16) Commerce Commission police officer;
16 (17) arson investigator.
17 A person employed in one of the positions specified in
18 this subsection is entitled to eligible creditable service
19 for service credit earned under this Article while undergoing
20 the basic police training course approved by the Illinois
21 Local Governmental Law Enforcement Officers Training
22 Standards Board, if completion of that training is required
23 of persons serving in that position. For the purposes of
24 this Code, service during the required basic police training
25 course shall be deemed performance of the duties of the
26 specified position, even though the person is not a sworn
27 peace officer at the time of the training.
28 (c) For the purposes of this Section:
29 (1) The term "state policeman" includes any title
30 or position in the Department of State Police that is
31 held by an individual employed under the State Police
32 Act.
33 (2) The term "fire fighter in the fire protection
34 service of a department" includes all officers in such
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1 fire protection service including fire chiefs and
2 assistant fire chiefs.
3 (3) The term "air pilot" includes any employee
4 whose official job description on file in the Department
5 of Central Management Services, or in the department by
6 which he is employed if that department is not covered by
7 the Personnel Code, states that his principal duty is the
8 operation of aircraft, and who possesses a pilot's
9 license; however, the change in this definition made by
10 this amendatory Act of 1983 shall not operate to exclude
11 any noncovered employee who was an "air pilot" for the
12 purposes of this Section on January 1, 1984.
13 (4) The term "special agent" means any person who
14 by reason of employment by the Division of Narcotic
15 Control, the Bureau of Investigation or, after July 1,
16 1977, the Division of Criminal Investigation, the
17 Division of Internal Investigation or any other Division
18 or organizational entity in the Department of State
19 Police is vested by law with duties to maintain public
20 order, investigate violations of the criminal law of this
21 State, enforce the laws of this State, make arrests and
22 recover property. The term "special agent" includes any
23 title or position in the Department of State Police that
24 is held by an individual employed under the State Police
25 Act.
26 (5) The term "investigator for the Secretary of
27 State" means any person employed by the Office of the
28 Secretary of State and vested with such investigative
29 duties as render him ineligible for coverage under the
30 Social Security Act by reason of Sections 218(d)(5)(A),
31 218(d)(8)(D) and 218(l)(1) of that Act.
32 A person who became employed as an investigator for
33 the Secretary of State between January 1, 1967 and
34 December 31, 1975, and who has served as such until
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1 attainment of age 60, either continuously or with a
2 single break in service of not more than 3 years
3 duration, which break terminated before January 1, 1976,
4 shall be entitled to have his retirement annuity
5 calculated in accordance with subsection (a),
6 notwithstanding that he has less than 20 years of credit
7 for such service.
8 (6) The term "Conservation Police Officer" means
9 any person employed by the Division of Law Enforcement of
10 the Department of Natural Resources and vested with such
11 law enforcement duties as render him ineligible for
12 coverage under the Social Security Act by reason of
13 Sections 218(d)(5)(A), 218(d)(8)(D), and 218(l)(1) of
14 that Act. The term "Conservation Police Officer"
15 includes the positions of Chief Conservation Police
16 Administrator and Assistant Conservation Police
17 Administrator.
18 (7) The term "investigator for the Department of
19 Revenue" means any person employed by the Department of
20 Revenue and vested with such investigative duties as
21 render him ineligible for coverage under the Social
22 Security Act by reason of Sections 218(d)(5)(A),
23 218(d)(8)(D) and 218(l)(1) of that Act.
24 (8) The term "security employee of the Department
25 of Human Services" means any person employed by the
26 Department of Human Services who is employed at the
27 Chester Mental Health Center and has daily contact with
28 the residents thereof, or who is a mental health police
29 officer. "Mental health police officer" means any person
30 employed by the Department of Human Services in a
31 position pertaining to the Department's mental health and
32 developmental disabilities functions who is vested with
33 such law enforcement duties as render the person
34 ineligible for coverage under the Social Security Act by
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1 reason of Sections 218(d)(5)(A), 218(d)(8)(D) and
2 218(l)(1) of that Act.
3 (9) "Central Management Services security police
4 officer" means any person employed by the Department of
5 Central Management Services who is vested with such law
6 enforcement duties as render him ineligible for coverage
7 under the Social Security Act by reason of Sections
8 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
9 (10) The term "security employee of the Department
10 of Corrections" means any employee of the Department of
11 Corrections or the former Department of Personnel, and
12 any member or employee of the Prisoner Review Board, who
13 has daily contact with inmates by working within a
14 correctional facility or who is a parole officer or an
15 employee who has direct contact with committed persons in
16 the performance of his or her job duties.
17 (11) The term "dangerous drugs investigator" means
18 any person who is employed as such by the Department of
19 Human Services.
20 (12) The term "investigator for the Department of
21 State Police" means a person employed by the Department
22 of State Police who is vested under Section 4 of the
23 Narcotic Control Division Abolition Act with such law
24 enforcement powers as render him ineligible for coverage
25 under the Social Security Act by reason of Sections
26 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
27 (13) "Investigator for the Office of the Attorney
28 General" means any person who is employed as such by the
29 Office of the Attorney General and is vested with such
30 investigative duties as render him ineligible for
31 coverage under the Social Security Act by reason of
32 Sections 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that
33 Act. For the period before January 1, 1989, the term
34 includes all persons who were employed as investigators
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1 by the Office of the Attorney General, without regard to
2 social security status.
3 (14) "Controlled substance inspector" means any
4 person who is employed as such by the Department of
5 Professional Regulation and is vested with such law
6 enforcement duties as render him ineligible for coverage
7 under the Social Security Act by reason of Sections
8 218(d)(5)(A), 218(d)(8)(D) and 218(l)(1) of that Act.
9 The term "controlled substance inspector" includes the
10 Program Executive of Enforcement and the Assistant
11 Program Executive of Enforcement.
12 (15) The term "investigator for the Office of the
13 State's Attorneys Appellate Prosecutor" means a person
14 employed in that capacity on a full time basis under the
15 authority of Section 7.06 of the State's Attorneys
16 Appellate Prosecutor's Act.
17 (16) "Commerce Commission police officer" means any
18 person employed by the Illinois Commerce Commission who
19 is vested with such law enforcement duties as render him
20 ineligible for coverage under the Social Security Act by
21 reason of Sections 218(d)(5)(A), 218(d)(8)(D), and
22 218(l)(1) of that Act.
23 (17) "Arson investigator" means any person who is
24 employed as such by the Office of the State Fire Marshal
25 and is vested with such law enforcement duties as render
26 the person ineligible for coverage under the Social
27 Security Act by reason of Sections 218(d)(5)(A),
28 218(d)(8)(D), and 218(l)(1) of that Act. A person who
29 was employed as an arson investigator on January 1, 1995
30 and is no longer in service but not yet receiving a
31 retirement annuity may convert his or her creditable
32 service for employment as an arson investigator into
33 eligible creditable service by paying to the System the
34 difference between the employee contributions actually
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1 paid for that service and the amounts that would have
2 been contributed if the applicant were contributing at
3 the rate applicable to persons with the same social
4 security status earning eligible creditable service on
5 the date of application.
6 (d) A security employee of the Department of
7 Corrections, and a security employee of the Department of
8 Human Services who is not a mental health police officer,
9 shall not be eligible for the alternative retirement annuity
10 provided by this Section unless he or she meets the following
11 minimum age and service requirements at the time of
12 retirement:
13 (i) 25 years of eligible creditable service and age
14 55; or
15 (ii) beginning January 1, 1987, 25 years of
16 eligible creditable service and age 54, or 24 years of
17 eligible creditable service and age 55; or
18 (iii) beginning January 1, 1988, 25 years of
19 eligible creditable service and age 53, or 23 years of
20 eligible creditable service and age 55; or
21 (iv) beginning January 1, 1989, 25 years of
22 eligible creditable service and age 52, or 22 years of
23 eligible creditable service and age 55; or
24 (v) beginning January 1, 1990, 25 years of eligible
25 creditable service and age 51, or 21 years of eligible
26 creditable service and age 55; or
27 (vi) beginning January 1, 1991, 25 years of
28 eligible creditable service and age 50, or 20 years of
29 eligible creditable service and age 55.
30 Persons who have service credit under Article 16 of this
31 Code for service as a security employee of the Department of
32 Corrections in a position requiring certification as a
33 teacher may count such service toward establishing their
34 eligibility under the service requirements of this Section;
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1 but such service may be used only for establishing such
2 eligibility, and not for the purpose of increasing or
3 calculating any benefit.
4 (e) If a member enters military service while working in
5 a position in which eligible creditable service may be
6 earned, and returns to State service in the same or another
7 such position, and fulfills in all other respects the
8 conditions prescribed in this Article for credit for military
9 service, such military service shall be credited as eligible
10 creditable service for the purposes of the retirement annuity
11 prescribed in this Section.
12 (f) For purposes of calculating retirement annuities
13 under this Section, periods of service rendered after
14 December 31, 1968 and before October 1, 1975 as a covered
15 employee in the position of special agent, conservation
16 police officer, mental health police officer, or investigator
17 for the Secretary of State, shall be deemed to have been
18 service as a noncovered employee, provided that the employee
19 pays to the System prior to retirement an amount equal to (1)
20 the difference between the employee contributions that would
21 have been required for such service as a noncovered employee,
22 and the amount of employee contributions actually paid, plus
23 (2) if payment is made after July 31, 1987, regular interest
24 on the amount specified in item (1) from the date of service
25 to the date of payment.
26 For purposes of calculating retirement annuities under
27 this Section, periods of service rendered after December 31,
28 1968 and before January 1, 1982 as a covered employee in the
29 position of investigator for the Department of Revenue shall
30 be deemed to have been service as a noncovered employee,
31 provided that the employee pays to the System prior to
32 retirement an amount equal to (1) the difference between the
33 employee contributions that would have been required for such
34 service as a noncovered employee, and the amount of employee
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1 contributions actually paid, plus (2) if payment is made
2 after January 1, 1990, regular interest on the amount
3 specified in item (1) from the date of service to the date of
4 payment.
5 (g) A State policeman may elect, not later than January
6 1, 1990, to establish eligible creditable service for up to
7 10 years of his service as a policeman under Article 3, by
8 filing a written election with the Board, accompanied by
9 payment of an amount to be determined by the Board, equal to
10 (i) the difference between the amount of employee and
11 employer contributions transferred to the System under
12 Section 3-110.5, and the amounts that would have been
13 contributed had such contributions been made at the rates
14 applicable to State policemen, plus (ii) interest thereon at
15 the effective rate for each year, compounded annually, from
16 the date of service to the date of payment.
17 Subject to the limitation in subsection (i), a State
18 policeman may elect, not later than July 1, 1993, to
19 establish eligible creditable service for up to 10 years of
20 his service as a member of the County Police Department under
21 Article 9, by filing a written election with the Board,
22 accompanied by payment of an amount to be determined by the
23 Board, equal to (i) the difference between the amount of
24 employee and employer contributions transferred to the System
25 under Section 9-121.10 and the amounts that would have been
26 contributed had those contributions been made at the rates
27 applicable to State policemen, plus (ii) interest thereon at
28 the effective rate for each year, compounded annually, from
29 the date of service to the date of payment.
30 (h) Subject to the limitation in subsection (i), a State
31 policeman or investigator for the Secretary of State may
32 elect to establish eligible creditable service for up to 12
33 years of his service as a policeman under Article 5, by
34 filing a written election with the Board on or before January
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1 31, 1992, and paying to the System by January 31, 1994 an
2 amount to be determined by the Board, equal to (i) the
3 difference between the amount of employee and employer
4 contributions transferred to the System under Section 5-236,
5 and the amounts that would have been contributed had such
6 contributions been made at the rates applicable to State
7 policemen, plus (ii) interest thereon at the effective rate
8 for each year, compounded annually, from the date of service
9 to the date of payment.
10 Subject to the limitation in subsection (i), a State
11 policeman, conservation police officer, or investigator for
12 the Secretary of State may elect to establish eligible
13 creditable service for up to 10 years of service as a
14 sheriff's law enforcement employee under Article 7, by filing
15 a written election with the Board on or before January 31,
16 1993, and paying to the System by January 31, 1994 an amount
17 to be determined by the Board, equal to (i) the difference
18 between the amount of employee and employer contributions
19 transferred to the System under Section 7-139.7, and the
20 amounts that would have been contributed had such
21 contributions been made at the rates applicable to State
22 policemen, plus (ii) interest thereon at the effective rate
23 for each year, compounded annually, from the date of service
24 to the date of payment.
25 (i) The total amount of eligible creditable service
26 established by any person under subsections (g), (h), (j),
27 (k), and (l) of this Section shall not exceed 12 years.
28 (j) Subject to the limitation in subsection (i), an
29 investigator for the Office of the State's Attorneys
30 Appellate Prosecutor or a controlled substance inspector may
31 elect to establish eligible creditable service for up to 10
32 years of his service as a policeman under Article 3 or a
33 sheriff's law enforcement employee under Article 7, by filing
34 a written election with the Board, accompanied by payment of
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1 an amount to be determined by the Board, equal to (1) the
2 difference between the amount of employee and employer
3 contributions transferred to the System under Section 3-110.6
4 or 7-139.8, and the amounts that would have been contributed
5 had such contributions been made at the rates applicable to
6 State policemen, plus (2) interest thereon at the effective
7 rate for each year, compounded annually, from the date of
8 service to the date of payment.
9 (k) Subject to the limitation in subsection (i) of this
10 Section, an alternative formula employee may elect to
11 establish eligible creditable service for periods spent as a
12 full-time law enforcement officer or full-time corrections
13 officer employed by the federal government or by a state or
14 local government located outside of Illinois, for which
15 credit is not held in any other public employee pension fund
16 or retirement system. To obtain this credit, the applicant
17 must file a written application with the Board by March 31,
18 1998, accompanied by evidence of eligibility acceptable to
19 the Board and payment of an amount to be determined by the
20 Board, equal to (1) employee contributions for the credit
21 being established, based upon the applicant's salary on the
22 first day as an alternative formula employee after the
23 employment for which credit is being established and the
24 rates then applicable to alternative formula employees, plus
25 (2) an amount determined by the Board to be the employer's
26 normal cost of the benefits accrued for the credit being
27 established, plus (3) regular interest on the amounts in
28 items (1) and (2) from the first day as an alternative
29 formula employee after the employment for which credit is
30 being established to the date of payment.
31 (l) Subject to the limitation in subsection (i), a
32 security employee of the Department of Corrections may elect,
33 not later than July 1, 1998, to establish eligible creditable
34 service for up to 10 years of his or her service as a
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1 policeman under Article 3, by filing a written election with
2 the Board, accompanied by payment of an amount to be
3 determined by the Board, equal to (i) the difference between
4 the amount of employee and employer contributions transferred
5 to the System under Section 3-110.5, and the amounts that
6 would have been contributed had such contributions been made
7 at the rates applicable to security employees of the
8 Department of Corrections, plus (ii) interest thereon at the
9 effective rate for each year, compounded annually, from the
10 date of service to the date of payment.
11 (Source: P.A. 89-136, eff. 7-14-95; 89-445, eff. 2-7-96;
12 89-507, eff. 7-1-97; 90-32, eff. 6-27-97; revised 7-10-98.)
13 (40 ILCS 5/14-110.1 new)
14 Sec. 14-110.1. Deferred Retirement Option Plan.
15 (a) The Deferred Retirement Option Plan created by this
16 Section shall first become available to eligible employees on
17 January 1, 2000.
18 (b) To be eligible to participate in the DROP plan, an
19 employee must (i) be in active service as a State Policeman,
20 (ii) have attained age 50, and (iii) have at least 20 years
21 of eligible creditable service in the System, as defined in
22 Section 14-110. An employee may participate in the DROP plan
23 only once.
24 (c) An election to participate in the DROP plan must be
25 made within 3 years after becoming eligible under subsection
26 (b) or by January 1, 2003, whichever is later. The election,
27 once made, is irrevocable.
28 The election to participate in the DROP plan shall be
29 made in writing on forms provided for that purpose by the
30 Board and shall be filed with the Board. The application
31 must indicate the date upon which participation in the DROP
32 plan is to begin, which shall be the first day of a calendar
33 month and not less than 30 days nor more than 90 days after
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1 the date of filing the application.
2 As a part of the application, the employee must file with
3 the Board and with his or her employer an irrevocable letter
4 of resignation from employment, effective on the date of
5 termination of the employee's participation in the DROP plan
6 (unless that termination results from acceptance of a
7 disability benefit).
8 (d) An employee's participation in the DROP plan shall
9 commence on the date specified in the application and shall
10 end upon (i) termination of service, (ii) death of the
11 employee, (iii) disability for which the employee receives a
12 benefit under Section 14-123 or 14-124, or (iv) expiration of
13 3 years from the date the employee's participation in the
14 DROP plan began, whichever occurs first.
15 (e) An employee who is participating in the DROP plan
16 shall be considered an active contributor for the purposes of
17 this Article, including Section 14-134, but shall be subject
18 to the special conditions of the DROP plan.
19 An employee shall continue to make the contributions that
20 are required for active contributors during his or her
21 participation in the DROP plan. These contributions shall be
22 accumulated in the employee's DROP account and shall be
23 treated as being "picked up" within the meaning of Section
24 14-133.1 of this Code and Section 414(h)(2) of the Internal
25 Revenue Code of 1986, as amended.
26 An employee who is participating in the DROP plan shall
27 not receive service credit for the period of that
28 participation, and the salary earned during that period shall
29 be disregarded in calculating the employee's benefits under
30 this Article.
31 (f) An employee who participates in the DROP plan may
32 terminate service at any time during participation in the
33 DROP plan. An employee who participates in the DROP plan
34 must terminate service on the last day of participation in
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1 the DROP plan, unless participation in the DROP plan is ended
2 due to acceptance of a disability benefit.
3 (g) An employee who is participating in the DROP plan
4 remains eligible to apply for a disability benefit under
5 Section 14-123 or 14-124, but participation in the DROP plan
6 ceases upon acceptance of the disability benefit. If
7 participation in the DROP plan is ended due to acceptance of
8 a disability benefit, (1) the disabled employee shall be
9 credited with employee contributions and creditable service
10 for the period of participation in the DROP plan, (2) the
11 employee's letter of resignation from service that is
12 required to be filed at the time of application to
13 participate in the DROP plan is void, and (3) the amounts in
14 the disabled employee's DROP account are forfeited to the
15 System.
16 (h) The System shall maintain a separate DROP account
17 for the benefit of each employee who becomes a participant in
18 the DROP plan. The System shall pay into the employee's DROP
19 account:
20 (1) for each month of the employee's participation
21 in the DROP plan, an amount equal to the monthly
22 retirement annuity that the employee would have been
23 eligible to receive if the employee had terminated
24 service and taken a retirement annuity on the date his or
25 her participation in the DROP plan began, including any
26 increases in annuity for which the employee would have
27 been eligible under Section 14-114;
28 (2) the employee contributions paid by the employee
29 during the period of participation in the DROP plan; and
30 (3) interest on the balance in the DROP account, at
31 the rate of 7% per annum, paid and compounded monthly,
32 throughout the period of participation in the DROP plan.
33 The DROP account shall cease earning interest when the
34 employee's participation in the DROP plan ends.
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1 (i) For an employee who retires at the conclusion of
2 participation in the DROP plan, calculation of the amount of
3 the retirement annuity, including any portion of the annuity
4 calculated under Section 14-108, shall be based on the
5 employee's final average compensation and accumulated service
6 as of the date he or she began participation in the DROP plan
7 and shall include any annual increases that would have
8 accrued under Section 14-114 if the employee had retired on
9 that date.
10 In addition to the retirement annuity, an employee who
11 terminates service and retires at the conclusion of his or
12 her participation in the DROP plan shall receive, upon
13 retirement, a DROP benefit equal to the balance in the
14 employee's DROP account at the time of retirement.
15 At the time of application for a retirement annuity, the
16 employee shall elect to receive the DROP benefit in the form
17 of either a lump sum or an actuarially equivalent annuity for
18 life. If a lump sum payment is elected, it may be rolled
19 over into an individual retirement account (IRA) or a
20 qualified retirement plan. A DROP benefit payable in the
21 form of an annuity shall be in a fixed amount not subject to
22 annual or other increases. A DROP benefit shall be treated
23 as a retirement benefit for the purposes of Section 1-119
24 (QILDROs).
25 (j) If an employee receiving a DROP benefit in the form
26 of an annuity re-enters service, the DROP benefit annuity
27 payments shall be suspended until the employee's subsequent
28 retirement.
29 (k) If an employee dies while participating in the DROP
30 plan, the DROP benefit shall be paid as a lump sum to the
31 surviving spouse or other survivor of the employee entitled
32 to an annuity under this Article or, if there is no such
33 survivor, then to the deceased employee's estate.
34 (l) If a retired employee dies while receiving a DROP
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1 benefit in the form of an annuity, and the DROP account
2 balance at the time of retirement exceeds the total amount of
3 DROP benefit annuity payments received, the excess shall be
4 refunded to the surviving spouse or other survivor of the
5 employee entitled to an annuity under this Article or, if
6 there is no such survivor, then to the deceased employee's
7 estate.
8 (40 ILCS 5/14-114) (from Ch. 108 1/2, par. 14-114)
9 Sec. 14-114. Automatic increase in retirement annuity.
10 (a) Any person receiving a retirement annuity under this
11 Article who retires having attained age 60, or who retires
12 before age 60 having at least 35 years of creditable service,
13 shall on January 1, next following the first full year of
14 retirement, have the amount of the then fixed and payable
15 monthly retirement annuity increased 3%. Any person
16 receiving a retirement annuity under this Article who retires
17 before attainment of age 60 and with less than 35 years of
18 creditable service shall have the amount of the fixed and
19 payable retirement annuity increased by 3% on the January 1
20 occurring on or next following (1) attainment of age 60, or
21 (2) the first anniversary of retirement, whichever occurs
22 later. However, for persons who receive the alternative
23 retirement annuity under Section 14-110, references in this
24 subsection (a) to attainment of age 60 shall be deemed to
25 refer to attainment of age 55. For a person receiving early
26 retirement incentives under Section 14-108.3 whose retirement
27 annuity began after January 1, 1992 pursuant to an extension
28 granted under subsection (e) of that Section, the first
29 anniversary of retirement shall be deemed to be January 1,
30 1993.
31 On each January 1 following the date of the initial
32 increase under this subsection, the employee's monthly
33 retirement annuity shall be increased by an additional 3%.
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1 Beginning January 1, 1990, all automatic annual increases
2 payable under this Section shall be calculated as a
3 percentage of the total annuity payable at the time of the
4 increase, including previous increases granted under this
5 Article.
6 For the purpose of calculating eligibility for increases
7 under this Section, the date of retirement of an employee who
8 retires at the conclusion of participation in the DROP plan
9 shall be deemed to be the date he or she began participation
10 in the DROP plan.
11 (b) The provisions of subsection (a) of this Section
12 shall be applicable to an employee only if the employee makes
13 the additional contributions required after December 31, 1969
14 for the purpose of the automatic increases for not less than
15 the equivalent of one full year. If an employee becomes an
16 annuitant before his additional contributions equal one full
17 year's contributions based on his salary at the date of
18 retirement, the employee may pay the necessary balance of the
19 contributions to the system, without interest, and be
20 eligible for the increasing annuity authorized by this
21 Section.
22 (c) The provisions of subsection (a) of this Section
23 shall not be applicable to any annuitant who is on retirement
24 on December 31, 1969, and thereafter returns to State
25 service, unless the member has established at least one year
26 of additional creditable service following reentry into
27 service.
28 (d) In addition to other increases which may be provided
29 by this Section, on January 1, 1981 any annuitant who was
30 receiving a retirement annuity on or before January 1, 1971
31 shall have his retirement annuity then being paid increased
32 $1 per month for each year of creditable service. On January
33 1, 1982, any annuitant who began receiving a retirement
34 annuity on or before January 1, 1977, shall have his
-19- LRB9101516EGfg
1 retirement annuity then being paid increased $1 per month for
2 each year of creditable service.
3 On January 1, 1987, any annuitant who began receiving a
4 retirement annuity on or before January 1, 1977, shall have
5 the monthly retirement annuity increased by an amount equal
6 to 8¢ per year of creditable service times the number of
7 years that have elapsed since the annuity began.
8 (e) Every person who receives the alternative retirement
9 annuity under Section 14-110 and who is eligible to receive
10 the 3% increase under subsection (a) on January 1, 1986,
11 shall also receive on that date a one-time increase in
12 retirement annuity equal to the difference between (1) his
13 actual retirement annuity on that date, including any
14 increases received under subsection (a), and (2) the amount
15 of retirement annuity he would have received on that date if
16 the amendments to subsection (a) made by Public Act 84-162
17 had been in effect since the date of his retirement.
18 (Source: P.A. 86-273; 87-1265.)
19 Section 99. Effective date. This Act takes effect upon
20 becoming law.