100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB2497

 

Introduced , by Rep. Robert Martwick

 

SYNOPSIS AS INTRODUCED:
 
40 ILCS 5/18-125  from Ch. 108 1/2, par. 18-125
40 ILCS 5/18-126.1  from Ch. 108 1/2, par. 18-126.1
40 ILCS 5/18-128.01  from Ch. 108 1/2, par. 18-128.01
40 ILCS 5/18-133  from Ch. 108 1/2, par. 18-133

    Amends the Judges Article of the Illinois Pension Code. In provisions concerning the retirement annuity amount, specifies that the maximum annual salary of $106,800 is for all purposes under the Article; makes a related change in provisions concerning temporary total disability benefits. Provides that if 2 or more persons are eligible to receive survivor's annuities based on the same deceased participant that first serves as a judge after January 1, 2011, the calculation of the survivor's annuities shall be based on the total calculation of the survivor's annuity and divided pro rata. Makes changes in provisions concerning employee contributions to clarify to whom certain provisions apply. Effective immediately.


LRB100 08024 RPS 18107 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2497LRB100 08024 RPS 18107 b

1    AN ACT concerning public employee benefits.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Pension Code is amended by changing
5Sections 18-125, 18-126.1, 18-128.01, and 18-133 as follows:
 
6    (40 ILCS 5/18-125)  (from Ch. 108 1/2, par. 18-125)
7    Sec. 18-125. Retirement annuity amount.
8    (a) The annual retirement annuity for a participant who
9terminated service as a judge prior to July 1, 1971 shall be
10based on the law in effect at the time of termination of
11service.
12    (b) Except as provided in subsection (b-5), effective July
131, 1971, the retirement annuity for any participant in service
14on or after such date shall be 3 1/2% of final average salary,
15as defined in this Section, for each of the first 10 years of
16service, and 5% of such final average salary for each year of
17service in on excess of 10.
18    For purposes of this Section, final average salary for a
19participant who first serves as a judge before August 10, 2009
20(the effective date of Public Act 96-207) shall be:
21        (1) the average salary for the last 4 years of credited
22    service as a judge for a participant who terminates service
23    before July 1, 1975.

 

 

HB2497- 2 -LRB100 08024 RPS 18107 b

1        (2) for a participant who terminates service after June
2    30, 1975 and before July 1, 1982, the salary on the last
3    day of employment as a judge.
4        (3) for any participant who terminates service after
5    June 30, 1982 and before January 1, 1990, the average
6    salary for the final year of service as a judge.
7        (4) for a participant who terminates service on or
8    after January 1, 1990 but before July 14, 1995 (the
9    effective date of Public Act 89-136) this amendatory Act of
10    1995, the salary on the last day of employment as a judge.
11        (5) for a participant who terminates service on or
12    after July 14, 1995 (the effective date of Public Act
13    89-136) this amendatory Act of 1995, the salary on the last
14    day of employment as a judge, or the highest salary
15    received by the participant for employment as a judge in a
16    position held by the participant for at least 4 consecutive
17    years, whichever is greater.
18    However, in the case of a participant who elects to
19discontinue contributions as provided in subdivision (a)(2) of
20Section 18-133, the time of such election shall be considered
21the last day of employment in the determination of final
22average salary under this subsection.
23    For a participant who first serves as a judge on or after
24August 10, 2009 (the effective date of Public Act 96-207) and
25before January 1, 2011 (the effective date of Public Act
2696-889), final average salary shall be the average monthly

 

 

HB2497- 3 -LRB100 08024 RPS 18107 b

1salary obtained by dividing the total salary of the participant
2during the period of: (1) the 48 consecutive months of service
3within the last 120 months of service in which the total
4compensation was the highest, or (2) the total period of
5service, if less than 48 months, by the number of months of
6service in that period.
7    The maximum retirement annuity for any participant shall be
885% of final average salary.
9    (b-5) Notwithstanding any other provision of this Article,
10for a participant who first serves as a judge on or after
11January 1, 2011 (the effective date of Public Act 96-889), the
12annual retirement annuity is 3% of the participant's final
13average salary for each year of service. The maximum retirement
14annuity payable shall be 60% of the participant's final average
15salary.
16    For a participant who first serves as a judge on or after
17January 1, 2011 (the effective date of Public Act 96-889),
18final average salary shall be the average monthly salary
19obtained by dividing the total salary of the judge during the
2096 consecutive months of service within the last 120 months of
21service in which the total salary was the highest by the number
22of months of service in that period; however, beginning January
231, 2011, the annual salary for all purposes under this Article
24may not exceed $106,800, except that that amount shall annually
25thereafter be increased by the lesser of (i) 3% of that amount,
26including all previous adjustments, or (ii) the annual

 

 

HB2497- 4 -LRB100 08024 RPS 18107 b

1unadjusted percentage increase (but not less than zero) in the
2consumer price index-u for the 12 months ending with the
3September preceding each November 1. "Consumer price index-u"
4means the index published by the Bureau of Labor Statistics of
5the United States Department of Labor that measures the average
6change in prices of goods and services purchased by all urban
7consumers, United States city average, all items, 1982-84 =
8100. The new amount resulting from each annual adjustment shall
9be determined by the Public Pension Division of the Department
10of Insurance and made available to the Board by November 1st of
11each year.
12    (c) The retirement annuity for a participant who retires
13prior to age 60 with less than 28 years of service in the
14System shall be reduced 1/2 of 1% for each month that the
15participant's age is under 60 years at the time the annuity
16commences. However, for a participant who retires on or after
17December 10, 1999 (the effective date of Public Act 91-653)
18this amendatory Act of the 91st General Assembly, the
19percentage reduction in retirement annuity imposed under this
20subsection shall be reduced by 5/12 of 1% for every month of
21service in this System in excess of 20 years, and therefore a
22participant with at least 26 years of service in this System
23may retire at age 55 without any reduction in annuity.
24    The reduction in retirement annuity imposed by this
25subsection shall not apply in the case of retirement on account
26of disability.

 

 

HB2497- 5 -LRB100 08024 RPS 18107 b

1    (d) Notwithstanding any other provision of this Article,
2for a participant who first serves as a judge on or after
3January 1, 2011 (the effective date of Public Act 96-889) and
4who is retiring after attaining age 62, the retirement annuity
5shall be reduced by 1/2 of 1% for each month that the
6participant's age is under age 67 at the time the annuity
7commences.
8(Source: P.A. 96-207, eff. 8-10-09; 96-889, eff. 1-1-11;
996-1000, eff. 7-2-10; 96-1490, eff. 1-1-11; revised 9-9-16.)
 
10    (40 ILCS 5/18-126.1)  (from Ch. 108 1/2, par. 18-126.1)
11    Sec. 18-126.1. Temporary total disability. A participant
12who has served for at least 2 years as a judge and has at least
132 years of service credit shall be entitled to a temporary
14total disability benefit provided:
15    (1) While in employment as a judge, the participant is
16found by medical examination to be mentally or physically
17incompetent to perform his or her duties;
18    (2) The participant does not receive or have a right to
19receive any salary as a judge;
20    (3) The board has received written certifications by at
21least 2 licensed and practicing physicians designated by it
22certifying that the participant is totally disabled and unable
23to perform the duties of his or her office as a consequence
24thereof; and
25    (4) The participant is not engaged in any form of gainful

 

 

HB2497- 6 -LRB100 08024 RPS 18107 b

1occupation during his or her disability.
2     The benefit shall begin as of the day following the
3removal of the judge from the payroll on account of the
4disability and be payable during the period of disability but
5not beyond the term of office for which the participant was
6last elected or appointed.
7    The benefit shall be 50% of the participant's rate of
8salary in effect at the date of removal from the payroll and
9shall be payable monthly. The rate of salary to determine the
10benefit under this Section payable to a participant who first
11serves as a judge on or after January 1, 201l shall be subject
12to the annual salary limitation prescribed by subsection (b-5)
13of Section 18-125.
14    A participant shall receive service credit for retirement
15and survivor's annuity purposes for the period that temporary
16disability benefits are paid.
17    The board shall prescribe rules and regulations necessary
18for the administration of this benefit.
19(Source: P.A. 83-1440.)
 
20    (40 ILCS 5/18-128.01)  (from Ch. 108 1/2, par. 18-128.01)
21    Sec. 18-128.01. Amount of survivor's annuity.
22    (a) Upon the death of an annuitant, his or her surviving
23spouse shall be entitled to a survivor's annuity of 66 2/3% of
24the annuity the annuitant was receiving immediately prior to
25his or her death, inclusive of annual increases in the

 

 

HB2497- 7 -LRB100 08024 RPS 18107 b

1retirement annuity to the date of death.
2    (b) Upon the death of an active participant, his or her
3surviving spouse shall receive a survivor's annuity of 66 2/3%
4of the annuity earned by the participant as of the date of his
5or her death, determined without regard to whether the
6participant had attained age 60 as of that time, or 7 1/2% of
7the last salary of the decedent, whichever is greater.
8    (c) Upon the death of a participant who had terminated
9service with at least 10 years of service, his or her surviving
10spouse shall be entitled to a survivor's annuity of 66 2/3% of
11the annuity earned by the deceased participant at the date of
12death.
13    (d) Upon the death of an annuitant, active participant, or
14participant who had terminated service with at least 10 years
15of service, each surviving child under the age of 18 or
16disabled as defined in Section 18-128 shall be entitled to a
17child's annuity in an amount equal to 5% of the decedent's
18final salary, not to exceed in total for all such children the
19greater of 20% of the decedent's last salary or 66 2/3% of the
20annuity received or earned by the decedent as provided under
21subsections (a) and (b) of this Section. This child's annuity
22shall be paid whether or not a survivor's annuity was elected
23under Section 18-123.
24    (e) The changes made in the survivor's annuity provisions
25by Public Act 82-306 shall apply to the survivors of a deceased
26participant or annuitant whose death occurs on or after August

 

 

HB2497- 8 -LRB100 08024 RPS 18107 b

121, 1981.
2    (f) Beginning January 1, 1990, every survivor's annuity
3shall be increased (1) on each January 1 occurring on or after
4the commencement of the annuity if the deceased member died
5while receiving a retirement annuity, or (2) in other cases, on
6each January 1 occurring on or after the first anniversary of
7the commencement of the annuity, by an amount equal to 3% of
8the current amount of the annuity, including any previous
9increases under this Article. Such increases shall apply
10without regard to whether the deceased member was in service on
11or after the effective date of this amendatory Act of 1991, but
12shall not accrue for any period prior to January 1, 1990.
13    (g) Notwithstanding any other provision of this Article,
14the initial survivor's annuity for a survivor of a participant
15who first serves as a judge after January 1, 2011 (the
16effective date of Public Act 96-889) shall be in the amount of
1766 2/3% of the annuity received or earned by the decedent, and
18shall be increased (1) on each January 1 occurring on or after
19the commencement of the annuity if the deceased participant
20died while receiving a retirement annuity, or (2) in other
21cases, on each January 1 occurring on or after the first
22anniversary of the commencement of the annuity, but in no event
23prior to age 67, by an amount equal to 3% or the annual
24unadjusted percentage increase in the consumer price index-u as
25determined by the Public Pension Division of the Department of
26Insurance under subsection (b-5) of Section 18-125, whichever

 

 

HB2497- 9 -LRB100 08024 RPS 18107 b

1is less, of the survivor's annuity then being paid. If 2 or
2more persons are eligible to receive survivor's annuities as
3provided under this Section based on the same deceased
4participant that first serves as a judge after January 1, 2011,
5the calculation of the survivor's annuities shall be based on
6the total calculation of the survivor's annuity and divided pro
7rata.
8(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
9    (40 ILCS 5/18-133)  (from Ch. 108 1/2, par. 18-133)
10    Sec. 18-133. Financing; employee contributions.
11    (a) Effective July 1, 1967, each participant is required to
12contribute 7 1/2% of each payment of salary toward the
13retirement annuity. Such contributions shall continue during
14the entire time the participant is in service, with the
15following exceptions:
16        (1) Contributions for the retirement annuity are not
17    required on salary received after 18 years of service by
18    persons who were participants before January 2, 1954.
19        (2) A participant who continues to serve as a judge
20    after becoming eligible to receive the maximum rate of
21    annuity may elect, through a written direction filed with
22    the Board, to discontinue contributing to the System. Any
23    such option elected by a judge shall be irrevocable unless
24    prior to January 1, 2000, and while continuing to serve as
25    judge, the judge (A) files with the Board a letter

 

 

HB2497- 10 -LRB100 08024 RPS 18107 b

1    cancelling the direction to discontinue contributing to
2    the System and requesting that such contributing resume,
3    and (B) pays into the System an amount equal to the total
4    of the discontinued contributions plus interest thereon at
5    5% per annum. Service credits earned in any other
6    "participating system" as defined in Article 20 of this
7    Code shall be considered for purposes of determining a
8    judge's eligibility to discontinue contributions under
9    this subdivision (a)(2).
10        (3) A participant who (i) first serves as a judge
11    before January 1, 2011 and has attained age 60, or first
12    serves as a judge on or after January 1, 2011 and has
13    attained age 67, (ii) continues to serve as a judge after
14    becoming eligible to receive the maximum rate of annuity,
15    and (iii) has not elected to discontinue contributing to
16    the System under subdivision (a)(2) of this Section (or has
17    revoked any such election) may elect, through a written
18    direction filed with the Board, to make contributions to
19    the System based only on the amount of the increases in
20    salary received by the judge on or after the date of the
21    election, rather than the total salary received. If a judge
22    who is making contributions to the System on the effective
23    date of this amendatory Act of the 91st General Assembly
24    makes an election to limit contributions under this
25    subdivision (a)(3) within 90 days after that effective
26    date, the election shall be deemed to become effective on

 

 

HB2497- 11 -LRB100 08024 RPS 18107 b

1    that effective date and the judge shall be entitled to
2    receive a refund of any excess contributions paid to the
3    System during that 90-day period; any other election under
4    this subdivision (a)(3) becomes effective on the first of
5    the month following the date of the election. An election
6    to limit contributions under this subdivision (a)(3) is
7    irrevocable. Service credits earned in any other
8    participating system as defined in Article 20 of this Code
9    shall be considered for purposes of determining a judge's
10    eligibility to make an election under this subdivision
11    (a)(3).
12    (b) Beginning July 1, 1969, each participant is required to
13contribute 1% of each payment of salary towards the automatic
14increase in annuity provided in Section 18-125.1. However, such
15contributions need not be made by any participant who has
16elected prior to September 15, 1969, not to be subject to the
17automatic increase in annuity provisions.
18    (c) Effective July 13, 1953, each married participant
19subject to the survivor's annuity provisions is required to
20contribute 2 1/2% of each payment of salary, whether or not he
21or she is required to make any other contributions under this
22Section. Such contributions shall be made concurrently with the
23contributions made for annuity purposes.
24    (d) Notwithstanding any other provision of this Article,
25the required contributions for a participant who first becomes
26a participant on or after January 1, 2011 shall not exceed the

 

 

HB2497- 12 -LRB100 08024 RPS 18107 b

1contributions that would be due under this Article if that
2participant's highest salary for annuity purposes were
3$106,800, plus any increase in that amount under Section
418-125.
5(Source: P.A. 96-1490, eff. 1-1-11.)
 
6    Section 99. Effective date. This Act takes effect upon
7becoming law.