State of Illinois
92nd General Assembly
Legislation

   [ Search ]   [ PDF text ]   [ Legislation ]   
[ Home ]   [ Back ]   [ Bottom ]



92_SB1538

 
                                              LRB9210801LDtmA

 1        AN ACT in relation to public employee benefits.

 2        Be  it  enacted  by  the People of the State of Illinois,
 3    represented in the General Assembly:

 4        Section 5.  The  Illinois  Pension  Code  is  amended  by
 5    changing Sections 13-301 and 13-302 as follows:

 6        (40 ILCS 5/13-301) (from Ch. 108 1/2, par. 13-301)
 7        Sec.   13-301.  Retirement   annuity;  eligibility.   Any
 8    employee who withdraws from service and  meets  the  age  and
 9    service  requirements  and  other  conditions  set  forth  in
10    subsections  (a),  (b),  (c)  or  (d)  hereof  is entitled to
11    receive a retirement annuity.
12        (a)  Withdrawal on or after age 60.  Any  employee,  upon
13    withdrawal  from service on or after attainment of age 60 and
14    having at  least  5  years  of  service,  is  entitled  to  a
15    retirement annuity.
16        (b)  Withdrawal   on   or  after  attainment  of  minimum
17    retirement age qualifications and prior to age 60.
18             (1)  Any employee, upon withdrawal from  service  on
19        or  after  attainment  of  age 55 (age 50 if the employee
20        first entered service before June 13, the effective  date
21        of  this  amendatory Act of 1997) but prior to age 60 and
22        having at least 10 years of service,  is  entitled  to  a
23        retirement  annuity  as  of the date of withdrawal or, at
24        the option of the employee, at any time thereafter.
25             (2)  Any  employee  who  withdraws   on   or   after
26        attainment  of  age  55  (age  50  if  the employee first
27        entered service before June 13,  the  effective  date  of
28        this  amendatory  Act of 1997) and prior to age 60 having
29        at least 5 years but less than 10  years  of  service  is
30        entitled  to  a retirement annuity upon attainment of age
31        62, subject to the other requirements of this Article.
 
                            -2-               LRB9210801LDtmA
 1             (3)  Any employee who withdraws from service  on  or
 2        after  attainment  of  age  50 but prior to age 60 and is
 3        eligible for early retirement without discount under  the
 4        Rule  of  80  as  provided  in  subsection (c) of Section
 5        13-302 is entitled to a retirement annuity at the time of
 6        withdrawal.
 7        (c)  Withdrawal prior to  minimum  retirement  age.   Any
 8    employee,  upon  withdrawal from service prior to age 55 (age
 9    50 if the employee first entered service before June 13,  the
10    effective  date of this amendatory Act of 1997) and having at
11    least 10  years  of  service,  shall  become  entitled  to  a
12    retirement  annuity  upon attainment of age 55 (age 50 if the
13    employee first entered service before June 13, the  effective
14    date of this amendatory Act of 1997) or, at the option of the
15    employee,  at  any  time  thereafter,  subject  to  the other
16    requirements of this Article.
17        (d)  Withdrawal while disabled.  Any employee  having  at
18    least 5 years of service who has received ordinary disability
19    benefits  on  or after January 1, 1986 for the maximum period
20    of time hereinafter  prescribed,  and  who  continues  to  be
21    disabled  and  withdraws from service, shall be entitled to a
22    retirement annuity.  The age and  service  conditions  as  to
23    eligibility  for  such  annuity  shall  be  waived  as to the
24    employee, but the early  retirement  discount  under  Section
25    13-302(b)  shall  apply.   If the employee is under age 55 on
26    the date of  withdrawal,  the  retirement  annuity  shall  be
27    computed  by  assuming  that  the employee is then age 55 and
28    then reduced to its actuarial equivalent at his attained  age
29    on  that  date  according  to applicable mortality tables and
30    interest rates.  The retirement annuity shall not be  payable
31    for  any  period prior to the employee's attainment of age 55
32    during which the  employee  is  able  to  return  to  gainful
33    employment.   Upon the employee's death while in receipt of a
34    retirement annuity, a  surviving  spouse  or  minor  children
 
                            -3-               LRB9210801LDtmA
 1    shall  be entitled to receive a surviving spouse's annuity or
 2    child's  annuity  subject  to  the   conditions   hereinafter
 3    prescribed in Sections 13-305 through 13-308.
 4    (Source: P.A. 90-12, eff. 6-13-97.)

 5        (40 ILCS 5/13-302) (from Ch. 108 1/2, par. 13-302)
 6        Sec. 13-302.  Computation of retirement annuity.
 7        (a)  Computation  of  annuity.  An employee who withdraws
 8    from service on or after July 1, 1989 and who has met the age
 9    and service requirements and other conditions for eligibility
10    set forth in Section 13-301 of this Article  is  entitled  to
11    receive  a  retirement  annuity  for  life  equal  to 2.2% of
12    average final salary for  each  of  the  first  20  years  of
13    service,  and  2.4%  of average final salary for each year of
14    service in excess of 20.  The retirement  annuity  shall  not
15    exceed 80% of average final salary.
16        (b)  Early  retirement  discount.  If an employee retires
17    prior to attainment of age 60 with  less  than  30  years  of
18    service,  the  annuity computed above shall be reduced by 1/2
19    of 1% for each full month between the date the annuity begins
20    and attainment of age 60, or each full  month  by  which  the
21    employee's service is less than 30 years, whichever is less.
22    However,  where  the employee first enters service after June
23    13, 1997 and does not have  at  least  10  years  of  service
24    exclusive  of  credit  under Article 20, the annuity computed
25    above shall be reduced by 1/2  of  1%  for  each  full  month
26    between the date the annuity begins and attainment of age 60.
27        (c)  Rule  of 80 - Early retirement without discount. For
28    an employee who retires on or after January 1, 2003 but on or
29    before December 31, 2007, if the employee is eligible  for  a
30    retirement  annuity  under Section 13-301 and has at least 10
31    years of service exclusive of credit under Article 20 and  if
32    at  the  date  of withdrawal the employee's age when added to
33    the number of years of his or her creditable  service  equals
 
                            -4-               LRB9210801LDtmA
 1    at  least 80, the early retirement discount in subsection (b)
 2    of this Section does not apply. For purposes of this Rule  of
 3    80, portions of years shall be considered in whole months.
 4        An  employee  who  has  terminated  employment  with  the
 5    employer  under  this  Article prior to the effective date of
 6    this  amendatory  Act  of  the  92nd  General  Assembly   and
 7    subsequently  re-enters  service  must remain in service with
 8    the employer under this Article for at least  2  years  after
 9    re-entry  during  the period beginning on January 1, 2003 and
10    ending  on  December  31,  2007  to  be  entitled  to   early
11    retirement without discount under this subsection (c).
12        In the case of an employee who retires under the terms of
13    Article 20, eligibility for early retirement without discount
14    under  this subsection (c) shall be based upon the employee's
15    age and service credit at the time  of  withdrawal  from  the
16    final fund. (Blank).
17        (c-1)  Early   retirement  without  discount;  retirement
18    after June 29, 1997 and before January 1, 2003.  An  employee
19    who  (i)  has  attained  age 55 (age 50 if the employee first
20    entered service before June 13, 1997), (ii) has at  least  10
21    years  of service exclusive of credit under Article 20, (iii)
22    retires after June 29, 1997 and before January 1,  2003,  and
23    (iv)  retires  within  6  months  of  the  last day for which
24    retirement contributions were required, may elect at the time
25    of application to make a one-time  employee  contribution  to
26    the  Fund  and  thereby  avoid the early retirement reduction
27    specified in subsection (b).  The exercise  of  the  election
28    shall   also   obligate  the  employer  to  make  a  one-time
29    nonrefundable contribution to the Fund.
30        The one-time employee and employer contributions shall be
31    a percentage of the  retiring  employee's  highest  full-time
32    annual  salary,  calculated  as  the  total  amount of salary
33    included in the highest 26 consecutive pay periods as used in
34    the average  final  salary  calculation,  and  based  on  the
 
                            -5-               LRB9210801LDtmA
 1    employee's  age and service at retirement.  The employee rate
 2    shall be 7% multiplied by  the  lesser  of  the  following  2
 3    numbers:  (1)  the  number of years, or portion thereof, that
 4    the employee is less than age 60; or (2) the number of years,
 5    or portion thereof, that the employee's service is less  than
 6    30  years.  The employer contribution shall be at the rate of
 7    20% for each year, or portion thereof, that  the  participant
 8    is less than age 60.
 9        Upon   receipt   of  the  application,  the  Board  shall
10    determine   the   corresponding   employee    and    employer
11    contributions.   The  annuity shall not be payable under this
12    subsection until both the required  contributions  have  been
13    received  by  the  Fund.  However, the date the contributions
14    are received shall  not  be  considered  in  determining  the
15    effective date of retirement.
16        The number of employees who may retire under this Section
17    in any year may be limited at the option of the District to a
18    specified  percentage  of those eligible, not lower than 30%,
19    with the right to participate to  be  allocated  among  those
20    applying  on  the  basis  of  seniority in the service of the
21    employer.
22        An   employee   who   has   terminated   employment   and
23    subsequently re-enters service shall not be entitled to early
24    retirement without discount under this subsection unless  the
25    employee  continues  in  service  for  at least 4 years after
26    re-entry.
27        (d)  Annual increase.  Except for employees retiring  and
28    receiving a term annuity, an employee who retires on or after
29    July  1, 1985 but before July 12, 2001, the effective date of
30    this amendatory Act of the 92nd General Assembly shall,  upon
31    the first payment date following the first anniversary of the
32    date  of retirement, have the monthly annuity increased by 3%
33    of the amount of the monthly annuity fixed  at  the  date  of
34    retirement.    Except  for employees retiring and receiving a
 
                            -6-               LRB9210801LDtmA
 1    term annuity, an employee who retires on or  after  July  12,
 2    2001  the  effective  date of this amendatory Act of the 92nd
 3    General Assembly shall, on the first  day  of  the  month  in
 4    which the first anniversary of the date of retirement occurs,
 5    have the monthly annuity increased by 3% of the amount of the
 6    monthly annuity fixed at the date of retirement.  The monthly
 7    annuity  shall  be  increased by an additional 3% on the same
 8    date each year thereafter.  Beginning January  1,  1993,  all
 9    annual  increases  payable  under  this  subsection  (or  any
10    predecessor  provision, regardless of the date of retirement)
11    shall be calculated at the rate of 3% of the monthly  annuity
12    payable  at the time of the increase, including any increases
13    previously granted under this Article.
14        Any employee who (i) retired before July 1, 1985 with  at
15    least  10  years  of  creditable service, (ii) is receiving a
16    retirement annuity under this  Article,  other  than  a  term
17    annuity, and (iii) has not received any annual increase under
18    this  subsection,  shall begin receiving the annual increases
19    provided under this subsection  (d)  beginning  on  the  next
20    annuity  payment  date  following  June 13, effective date of
21    this amendatory Act of 1997.
22        (e)  Minimum retirement annuity.   Beginning  January  1,
23    1993,  the  minimum  monthly retirement annuity shall be $500
24    for any annuitant having at least 10 years of  service  under
25    this Article, other than a term annuitant or an annuitant who
26    began  receiving  the  annuity  before attaining age 60.  Any
27    such annuitant who is receiving a  monthly  annuity  of  less
28    than  $500  shall  have the annuity increased to $500 on that
29    date.
30        Beginning January 1, 1993, the minimum monthly retirement
31    annuity shall be $250 for any annuitant (other than a term or
32    reciprocal annuitant or an annuitant under subsection (d)  of
33    Section  13-301)  having  less than 10 years of service under
34    this Article, and  for  any  annuitant  (other  than  a  term
 
                            -7-               LRB9210801LDtmA
 1    annuitant)  having  at  least  10 years of service under this
 2    Article who began receiving the annuity before attaining  age
 3    60.  Any such annuitant who is receiving a monthly annuity of
 4    less  than  $250  shall have the annuity increased to $250 on
 5    that date.
 6        Beginning on the first day of  the  month  following  the
 7    month  in  which  this  amendatory  Act  of  the 92nd General
 8    Assembly takes effect (and  without  regard  to  whether  the
 9    annuitant  was  in  service on or after that effective date),
10    the minimum monthly  retirement  annuity  for  any  annuitant
11    having  at least 10 years of service, other than an annuitant
12    whose annuity is subject to  an  early  retirement  discount,
13    shall  be $500 plus $25 for each year of service in excess of
14    10, not to exceed $750 for an annuitant with 20 or more years
15    of service.  In  the  case  of  a  reciprocal  annuity,  this
16    minimum  shall  apply  only  if the annuitant has at least 10
17    years of service under this Article, and the  amount  of  the
18    minimum  annuity  shall  be  reduced  by  the  sum of all the
19    reciprocal  annuities  payable  to  the  annuitant  by  other
20    participating systems under Article 20 of this Code.
21        Notwithstanding any other provision of  this  subsection,
22    beginning  on  the  first annuity payment date following July
23    12, 2001 the effective date of this  amendatory  Act  of  the
24    92nd  General Assembly, an employee who retired before August
25    23, 1989 with at least 10 years of service under this Article
26    but before  attaining  age  60  (regardless  of  whether  the
27    retirement   annuity  was  subject  to  an  early  retirement
28    discount) shall be  entitled  to  the  same  minimum  monthly
29    retirement  annuity  under this subsection as an employee who
30    retired with at least 10 years of service under this  Article
31    and after attaining age 60.
32    (Source: P.A. 92-53, eff. 7-12-01.)

33        Section  90.  The State Mandates Act is amended by adding
 
                            -8-               LRB9210801LDtmA
 1    Section 8.26 as follows:

 2        (30 ILCS 805/8.26 new)
 3        Sec. 8.26. Exempt mandate.   Notwithstanding  Sections  6
 4    and  8 of this Act, no reimbursement by the State is required
 5    for  the  implementation  of  any  mandate  created  by  this
 6    amendatory Act of the 92nd General Assembly.

 7        Section 99.  Effective date.  This Act takes effect  upon
 8    becoming law.

[ Top ]