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91_HB2863
LRB9106235EGfg
1 AN ACT to amend the Illinois Pension Code by changing
2 Section 9-134 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 9-134 as follows:
7 (40 ILCS 5/9-134) (from Ch. 108 1/2, par. 9-134)
8 Sec. 9-134. Minimum annuity - Additional provisions.
9 (a) An employee who withdraws after July 1, 1957 at age
10 60 or more with 20 or more years of service, for whom the
11 amount of age and service and prior service annuity combined
12 is less than the amount stated in this Section from the date
13 of withdrawal, instead of all annuities otherwise provided in
14 this Article, is entitled to receive an annuity for life of
15 an amount equal to 1 2/3% for each year of service, of his
16 highest average annual salary for any 5 consecutive years
17 within the last 10 years of service immediately preceding the
18 date of withdrawal; provided that in the case of any employee
19 who withdraws on or after July 1, 1971, such employee age 60
20 or over with 20 or more years of service, or who withdraws on
21 or after January 1, 1982 and on or after attainment of age 65
22 with 10 or more years of service, shall instead receive an
23 annuity for life equal to 1.67% for each of the first 10
24 years of service; 1.90% for each of the next 10 years of
25 service; 2.10% for each year of service in excess of 20 but
26 not exceeding 30; and 2.30% for each year of service in
27 excess of 30, based on the highest average annual salary for
28 any 4 consecutive years within the last 10 years of service
29 immediately preceding the date of withdrawal.
30 An employee who withdraws after July 1, 1957, but prior
31 to January 1, 1988, with 20 or more years of service, before
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1 age 60 is entitled to annuity, to begin not earlier than age
2 55, if under such age at withdrawal, as computed in the last
3 preceding paragraph, reduced 1/2 of 1% for each full month or
4 fractional part thereof that his attained age when annuity is
5 to begin is less than 60 to the end that the total reduction
6 at age 55 shall be 30%, except that an employee retiring at
7 age 55 or over but less than age 60, having at least 35 years
8 of service, shall not be subject to the reduction in his
9 retirement annuity because of retirement below age 60.
10 An employee who withdraws on or after January 1, 1988,
11 with 20 or more years of service and before age 60, is
12 entitled to annuity as computed above, to begin not earlier
13 than age 50 if under such age at withdrawal, reduced 1/2 of
14 1% for each full month or fractional part thereof that his
15 attained age when annuity is to begin is less than 60, to the
16 end that the total reduction at age 50 shall be 60%, except
17 that an employee retiring at age 50 or over but less than age
18 60, having at least 30 years of service, shall not be subject
19 to the reduction in retirement annuity because of retirement
20 below age 60.
21 An employee who withdraws on or after January 1, 1992 but
22 before January 1, 1993, at age 60 or over with 5 or more
23 years of service, may elect, in lieu of any other employee
24 annuity provided in this Section, to receive an annuity for
25 life equal to 2.20% for each of the first 20 years of
26 service, and 2.40% for each year of service in excess of 20,
27 based on the highest average annual salary for any 4
28 consecutive years within the last 10 years of service
29 immediately preceding the date of withdrawal. An employee
30 who withdraws on or after January 1, 1992, but before January
31 1, 1993, on or after attainment of age 55 but before
32 attainment of age 60 with 5 or more years of service, is
33 entitled to elect such annuity, but the annuity shall be
34 reduced 0.25% for each full month or fractional part thereof
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1 that his attained age when the annuity is to begin is less
2 than age 60, to the end that the total reduction at age 55
3 shall be 15%, except that an employee retiring at age 55 or
4 over but less than age 60, having at least 30 years of
5 service, shall not be subject to the reduction in retirement
6 annuity because of retirement below age 60. This annuity
7 benefit formula shall only apply to those employees who are
8 age 55 or over prior to January 1, 1993, and who elect to
9 withdraw at age 55 or over on or after January 1, 1992 but
10 before January 1, 1993.
11 The maximum annuity under this paragraph (a) shall not
12 exceed 70% of highest average annual salary for any 5
13 consecutive years within the last 10 years of service in the
14 case of an employee who withdraws prior to July 1, 1971, and
15 75% of the highest average annual salary for any 4
16 consecutive years within the last 10 years of service
17 immediately preceding the date of withdrawal if withdrawal
18 takes place on or after July 1, 1971 and prior to January 1,
19 1988, and 80% of the highest average annual salary for any 4
20 consecutive years within the last 10 years of service
21 immediately preceding the date of withdrawal if withdrawal
22 takes place on or after January 1, 1988. Fifteen hundred
23 dollars shall be considered the minimum amount of annual
24 salary for any year, and the maximum shall be his salary as
25 defined in this Article, except that for the years before
26 1957 and subsequent to 1952 the maximum annual salary to be
27 considered shall be $6,000, and for any year before the year
28 1953, $4,800.
29 (b) Any employee who withdraws on or after July 1, 1985
30 but prior to January 1, 1988, at age 60 or over with 10 or
31 more years of service, may elect in lieu of the benefit in
32 paragraph (a) to receive an annuity for life equal to 2.00%
33 for each year of service, based on the highest average annual
34 salary for any 4 consecutive years within the last 10 years
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1 of service immediately preceding the date of withdrawal. An
2 employee who withdraws on or after July 1, 1985, but prior to
3 January 1, 1988, with 10 or more years of service, but before
4 age 60, is entitled to elect such annuity, to begin not
5 earlier than age 55, but the annuity shall be reduced 0.5%
6 for each full month or fractional part thereof that his
7 attained age when the annuity is to begin is less than 60, to
8 the end that the total reduction at age 55 shall be 30%;
9 except that an employee retiring at age 55 or over but less
10 than age 60, having at least 30 years of service, shall not
11 be subject to the reduction in retirement annuity because of
12 retirement below age 60.
13 An employee who withdraws on or after January 1, 1988, at
14 age 60 or over with 10 or more years of service, may elect,
15 in lieu of the benefit in paragraph (a), to receive an
16 annuity for life equal to 2.20% for each of the first 20
17 years of service, and 2.4% for each year of service in excess
18 of 20, based on the highest average annual salary for any 4
19 consecutive years within the last 10 years of service
20 immediately preceding the date of withdrawal. An employee
21 who withdraws on or after January 1, 1988, with 10 or more
22 years of service, but before age 60, is entitled to elect
23 such annuity, to begin not earlier than age 50, but the
24 annuity shall be reduced 0.5% for each full month or
25 fractional part thereof that his attained age when the
26 annuity is to begin is less than 60, to the end that the
27 total reduction at age 50 shall be 60%, except that (i) an
28 employee retiring at age 50 or over but less than age 60,
29 having at least 30 years of service, shall not be subject to
30 the reduction in retirement annuity because of retirement
31 below age 60, and (ii) for an employee retiring on or after
32 the effective date of this amendatory Act of the 91st General
33 Assembly at age 50 or over but less than age 60, having at
34 least 20 years of service as a court service deputy sheriff,
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1 the reduction for retirement before age 60 shall be
2 calculated at the rate of 0.25% (rather than 0.5%) per month.
3 The maximum annuity under this paragraph (b) shall not
4 exceed 75% of the highest average annual salary for any 4
5 consecutive years within the last 10 years of service
6 immediately preceding the date of withdrawal if withdrawal
7 occurs prior to January 1, 1988, or 80% of the highest
8 average annual salary for any 4 consecutive years within the
9 last 10 years of service immediately preceding the date of
10 withdrawal if withdrawal takes place on or after January 1,
11 1988.
12 The provisions of this paragraph (b) do not apply to any
13 former County employee receiving an annuity from the fund,
14 who re-enters service as a County employee, unless he renders
15 at least 3 years of additional service after the date of
16 re-entry.
17 (c) For an employee receiving disability benefit, the
18 salary for annuity purposes under paragraph (a) or (b) of
19 this Section shall, for all periods of disability benefit
20 subsequent to the year 1956, be the amount on which his
21 disability benefit was based.
22 (d) A county employee with 20 or more years of service,
23 whose entire disability benefit credit period expires before
24 attainment of age 50 (age 55 if expiration occurs before
25 January 1, 1988), while still disabled for service is
26 entitled upon withdrawal to the larger of:
27 (1) the minimum annuity provided above, assuming
28 that he is then age 50 (age 55 if expiration occurs
29 before January 1, 1988), and reducing such annuity to its
30 actuarial equivalent at his attained age on such date, or
31 (2) the annuity provided from his age and service
32 and prior service annuity credits.
33 (e) The minimum annuity provisions above do not apply to
34 any former county employee receiving an annuity from the
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1 fund, who re-enters service as a county employee, unless he
2 renders at least 3 years of additional service after the date
3 of re-entry.
4 (f) Any employee in service on July 1, 1947, or who
5 enters service thereafter before attaining age 65 and
6 withdraws after age 65 with less than 10 years of service for
7 whom the annuity has been fixed under the foregoing Sections
8 of this Article, shall, instead of the annuity so fixed,
9 receive an annuity as follows:
10 Such amount as he could have received had the accumulated
11 amounts for annuity been improved with interest at the
12 effective rate to the date of withdrawal, or to attainment of
13 age 70, whichever is earlier, and had the county contributed
14 to such earlier date for age and service annuity the amount
15 that it would have contributed had he been under age 65,
16 after the date his annuity was fixed in accordance with this
17 Article, and assuming his annuity were computed from such
18 accumulations as of his age on such earlier date. However
19 those employees who before July 1, 1953, made additional
20 contributions in accordance with this Article, the annuity so
21 computed under this paragraph shall not exceed the annuity
22 which would be payable under the other provisions of this
23 Section if the employee concerned was credited with 20 years
24 of service and would qualify for annuity thereunder.
25 (g) Instead of the annuity provided in this or any other
26 Section of this Article, an employee having attained age 65
27 with at least 15 years of service may elect to receive a
28 minimum annual annuity for life equal to 1% of the highest
29 average annual salary for any 4 consecutive years within the
30 last 10 years of service immediately preceding retirement for
31 each year of service, plus the sum of $25 for each year of
32 service provided that no such minimum annual annuity may be
33 greater than 60% of such highest average annual salary.
34 (h) The annuity is payable in equal monthly
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1 installments.
2 (i) If, by operation of law, a function of a
3 governmental unit, as defined by Section 20-107 of this Code,
4 is transferred in whole or in part to the county in which
5 this Article 9 is created as set forth in Section 9-101, and
6 employees of the governmental unit are transferred as a class
7 to such county, the earnings credits in the retirement system
8 covering the governmental unit which have been validated
9 under Section 20-109 of this Code shall be considered in
10 determining the highest average annual salary for purposes of
11 this Section 9-134.
12 (j) The annuity being paid to an employee annuitant on
13 July 1, 1988, shall be increased on that date by 1% for each
14 full year that has elapsed from the date the annuity began.
15 (k) Notwithstanding anything to the contrary in this
16 Article 9, Section 20-131 shall not apply to an employee who
17 withdraws on or after January 1, 1988, but prior to attaining
18 age 55. Therefore, no employee shall be entitled to elect to
19 have the alternative formula previously set forth in Section
20 20-122 prior to the amendatory Act of 1975 apply to any
21 annuity, the payment of which commenced after January 1,
22 1988, but prior to such employee's attainment of age 55.
23 (Source: P.A. 86-272; 87-794.)
24 Section 90. The State Mandates Act is amended by adding
25 Section 8.23 as follows:
26 (30 ILCS 805/8.23 new)
27 Sec. 8.23. Exempt mandate. Notwithstanding Sections 6
28 and 8 of this Act, no reimbursement by the State is required
29 for the implementation of any mandate created by this
30 amendatory Act of the 91st General Assembly.
31 Section 99. Effective date. This Act takes effect upon
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1 becoming law.