093_HB2546

 
                                     LRB093 07477 EFG 07648 b

 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 14-108 and 14-133 as follows:

 6        (40 ILCS 5/14-108) (from Ch. 108 1/2, par. 14-108)
 7        Sec. 14-108.  Amount of retirement annuity.  A member who
 8    has contributed to the System for at least 12 months shall be
 9    entitled  to  a  prior  service  annuity  for  each  year  of
10    certified prior service credited to him, except that a member
11    shall receive 1/3 of the prior service annuity for each  year
12    of  service for which contributions have been made and all of
13    such annuity shall be  payable  after  the  member  has  made
14    contributions for a period of 3 years.  Proportionate amounts
15    shall  be  payable for service of less than a full year after
16    completion of at least 12 months.
17        The  total  period  of  service  to  be   considered   in
18    establishing  the  measure  of  prior  service  annuity shall
19    include service credited in the Teachers'  Retirement  System
20    of   the   State  of  Illinois  and  the  State  Universities
21    Retirement System for which contributions have been  made  by
22    the  member to such systems; provided that at least 1 year of
23    the total period of 3 years prescribed for the allowance of a
24    full measure  of  prior  service  annuity  shall  consist  of
25    membership  service  in this system for which credit has been
26    granted.
27        (a)  In the case of a member  who  retires  on  or  after
28    January  1, 1998 and is a noncovered employee, the retirement
29    annuity for membership service and  prior  service  shall  be
30    2.2%  of final average compensation for each year of service.
31    Any service credit established as a covered employee shall be
 
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 1    computed as stated in paragraph (b).
 2        (b)  In the case of a member  who  retires  on  or  after
 3    January   1,  2004  1998  and  is  a  covered  employee,  the
 4    retirement annuity for membership service and  prior  service
 5    shall  be computed as stated in paragraph (a) for all service
 6    credit established as  a  noncovered  employee;  for  service
 7    credit  established  as  a  covered employee it shall be 2.0%
 8    1.67% of final average compensation for each year of service.
 9        (c)  For a member retiring after  attaining  age  55  but
10    before  age  60  with  at  least 30 but less than 35 years of
11    creditable service if retirement is before January  1,  2001,
12    or  with  at  least  25  but less than 30 years of creditable
13    service if retirement is on or after  January  1,  2001,  the
14    retirement  annuity  shall  be  reduced by 1/2 of 1% for each
15    month that the member's age is under age 60 at  the  time  of
16    retirement.
17        (d)  A  retirement  annuity shall not exceed 75% of final
18    average compensation, subject to such extension as may result
19    from the application of Section 14-114 or Section 14-115.
20        (e)  The  retirement  annuity  payable  to  any   covered
21    employee  who  is  a  member  of the System and in service on
22    January 1, 1969, or in service thereafter in 1969 as a result
23    of legislation  enacted  by  the  Illinois  General  Assembly
24    transferring  the  member  to  State  employment  from county
25    employment in a county Department of Public Aid  in  counties
26    of 3,000,000 or more population, under a plan of coordination
27    with   the  Old  Age,  Survivors  and  Disability  provisions
28    thereof, if not fully insured for Old Age Insurance  payments
29    under the Federal Old Age, Survivors and Disability Insurance
30    provisions at the date of acceptance of a retirement annuity,
31    shall  not be less than the amount for which the member would
32    have been eligible if coordination were not applicable.
33        (f)  The  retirement  annuity  payable  to  any   covered
34    employee  who  is  a  member  of the System and in service on
 
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 1    January 1, 1969, or in service thereafter in 1969 as a result
 2    of the legislation designated in  the  immediately  preceding
 3    paragraph,  if  fully  insured for Old Age Insurance payments
 4    under  the  Federal  Social  Security  Act  at  the  date  of
 5    acceptance of a retirement annuity, shall not be less than an
 6    amount which when added  to  the  Primary  Insurance  Benefit
 7    payable  to  the  member upon attainment of age 65 under such
 8    Federal Act, will equal the annuity which would otherwise  be
 9    payable   if  the  coordinated  plan  of  coverage  were  not
10    applicable.
11        (g)  In  the  case  of  a  member  who  is  a  noncovered
12    employee, the retirement annuity for membership service as  a
13    security   employee  of  the  Department  of  Corrections  or
14    security employee of the Department of Human  Services  shall
15    be:   if retirement occurs on or after January 1, 2001, 3% of
16    final  average  compensation  for  each  year  of  creditable
17    service; or if retirement occurs before January 1, 2001, 1.9%
18    of final average compensation for each of the first 10  years
19    of  service,  2.1%  for each of the next 10 years of service,
20    2.25% for each year of  service  in  excess  of  20  but  not
21    exceeding  30, and 2.5% for each year in excess of 30; except
22    that the annuity  may  be  calculated  under  subsection  (a)
23    rather  than  this subsection (g) if the resulting annuity is
24    greater.
25        (h)  In the case of a member who is a  covered  employee,
26    the  retirement  annuity for membership service as a security
27    employee  of  the  Department  of  Corrections  or   security
28    employee  of  the  Department of Human Services shall be:  if
29    retirement occurs on or after January 1, 2001, 2.5% of  final
30    average  compensation for each year of creditable service; if
31    retirement occurs before January  1,  2001,  1.67%  of  final
32    average  compensation  for  each  of  the  first  10 years of
33    service, 1.90% for each of the  next  10  years  of  service,
34    2.10%  for  each  year  of  service  in  excess of 20 but not
 
                            -4-      LRB093 07477 EFG 07648 b
 1    exceeding 30, and 2.30% for each year in excess of 30.
 2        (i)  For the purposes of this Section and Section  14-133
 3    of this Act, the term "security employee of the Department of
 4    Corrections"   and   the   term  "security  employee  of  the
 5    Department  of  Human  Services"  shall  have  the   meanings
 6    ascribed to them in subsection (c) of Section 14-110.
 7        (j)  The   retirement   annuity   computed   pursuant  to
 8    paragraphs (g) or (h)  shall  be  applicable  only  to  those
 9    security  employees  of  the  Department  of  Corrections and
10    security employees of the Department of  Human  Services  who
11    have  at least 20 years of membership service and who are not
12    eligible for  the  alternative  retirement  annuity  provided
13    under  Section 14-110.  However, persons transferring to this
14    System under Section 14-108.2 or 14-108.2c who  have  service
15    credit  under  Article 16 of this Code may count such service
16    toward  establishing  their  eligibility  under  the  20-year
17    service requirement of this subsection; but such service  may
18    be  used  only for establishing such eligibility, and not for
19    the purpose of increasing or calculating any benefit.
20        (k)  (Blank).
21        (l)  The changes to this Section made by this  amendatory
22    Act  of  1997  (changing  certain retirement annuity formulas
23    from a stepped rate to a flat  rate)  apply  to  members  who
24    retire on or after January 1, 1998, without regard to whether
25    employment  terminated  before  the  effective  date  of this
26    amendatory Act of 1997.  An annuity shall not  be  calculated
27    in  steps  by  using the new flat rate for some steps and the
28    superseded stepped rate for other steps of the same  type  of
29    service.
30    (Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01.)

31        (40 ILCS 5/14-133) (from Ch. 108 1/2, par. 14-133)
32        Sec. 14-133.  Contributions by or on behalf of members.
33        (a)  Each participating employee shall make contributions
 
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 1    to  the  System,  based  on  the  employee's compensation, as
 2    follows:
 3             (1)  Covered employees, except as  indicated  below,
 4        3.5%  for  retirement  annuity,  and  0.5% for a widow or
 5        survivors  annuity  plus   the   following   amount   for
 6        retirement  annuity:  3.5% through December 31, 2003, and
 7        4.53% thereafter;
 8             (2)  Noncovered  employees,  except   as   indicated
 9        below,  7%  for  retirement annuity and 1% for a widow or
10        survivors annuity;
11             (3)  Noncovered employees serving in a  position  in
12        which "eligible creditable service" as defined in Section
13        14-110 may be earned, 1% for a widow or survivors annuity
14        plus  the  following  amount for retirement annuity: 8.5%
15        through December 31, 2001; 9.5% in 2002; 10.5%  in  2003;
16        and 11.5% in 2004 and thereafter;
17             (4)  Covered  employees  serving  in  a  position in
18        which "eligible creditable service" as defined in Section
19        14-110 may be earned,  0.5%  for  a  widow  or  survivors
20        annuity plus the following amount for retirement annuity:
21        5% through December 31, 2001; 6% in 2002; 7% in 2003; and
22        8% in 2004 and thereafter;
23             (5)  Each  security  employee  of  the Department of
24        Corrections or of the Department of Human Services who is
25        a covered employee, 0.5% for a widow or survivors annuity
26        plus the following  amount  for  retirement  annuity:  5%
27        through December 31, 2001; 6% in 2002; 7% in 2003; and 8%
28        in 2004 and thereafter;
29             (6)  Each  security  employee  of  the Department of
30        Corrections or of the Department of Human Services who is
31        not a covered employee,  1%  for  a  widow  or  survivors
32        annuity plus the following amount for retirement annuity:
33        8.5%  through  December  31, 2001; 9.5% in 2002; 10.5% in
34        2003; and 11.5% in 2004 and thereafter.
 
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 1        (b)  Contributions shall be in the form  of  a  deduction
 2    from  compensation and shall be made notwithstanding that the
 3    compensation paid in cash to the employee  shall  be  reduced
 4    thereby  below  the  minimum prescribed by law or regulation.
 5    Each member is deemed to consent and agree to the  deductions
 6    from  compensation  provided  for  in this Article, and shall
 7    receipt in full for salary or compensation.
 8    (Source: P.A. 92-14, eff. 6-28-01.)

 9        Section 99. Effective date.  This Act takes  effect  upon
10    becoming law.