98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB2725

 

Introduced 2/21/2013, by Rep. Robert Rita

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the General Assembly, State Employee, State Universities, Downstate Teacher, and Judges Articles of the Illinois Pension Code. For Tier 1 employees and their survivors, and for Tier 2 participants in the General Assembly and Judges Retirement Systems and their survivors, imposes a reduction in automatic annual increases in retirement, survivor, and disability annuities. Effective immediately.


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FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB2725LRB098 07543 EFG 37614 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 2-119.1, 2-121.1, 14-114, 14-119, 14-121, 14-125.1,
615-136, 15-145, 15-153.3, 16-133.1, 16-136.1, 16-143.1,
716-149.5, 18-125.1, and 18-128.01 and by adding Sections
82-107.1, 2-107.2, 14-103.40, 14-103.41, 15-107.1, 15-107.2,
916-106.4, 16-106.5, 18-110.1, and 18-110.2 as follows:
 
10    (40 ILCS 5/2-107.1 new)
11    Sec. 2-107.1. Tier 1 participant. "Tier 1 participant"
12means a participant who first became a participant of this
13System before January 1, 2011 (the effective date of Public Act
1496-889).
 
15    (40 ILCS 5/2-107.2 new)
16    Sec. 2-107.2. Tier 2 participant. "Tier 2 participant"
17means a participant who first becomes a participant of this
18System on or after January 1, 2011 (the effective date of
19Public Act 96-889).
 
20    (40 ILCS 5/2-119.1)  (from Ch. 108 1/2, par. 2-119.1)
21    Sec. 2-119.1. Automatic increase in retirement annuity.

 

 

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1    (a) Except as provided in subsection (f), a Tier 1 A
2participant who retires after June 30, 1967, and who has not
3received an initial increase under this Section before the
4effective date of this amendatory Act of 1991, shall, in
5January or July next following the first anniversary of
6retirement, whichever occurs first, and in the same month of
7each year thereafter, but in no event prior to age 60, have the
8amount of the originally granted retirement annuity increased
9as follows: for each year through 1971, 1 1/2%; for each year
10from 1972 through 1979, 2%; and for 1980 and each year
11thereafter, 3%. Annuitants who have received an initial
12increase under this subsection prior to the effective date of
13this amendatory Act of 1991 shall continue to receive their
14annual increases in the same month as the initial increase.
15    (b) Beginning January 1, 1990, for eligible participants
16who remain in service after attaining 20 years of creditable
17service, the 3% increases provided under subsection (a) or (f)
18shall begin to accrue on the January 1 next following the date
19upon which the participant (1) attains age 55, or (2) attains
2020 years of creditable service, whichever occurs later, and
21shall continue to accrue while the participant remains in
22service; such increases shall become payable on January 1 or
23July 1, whichever occurs first, next following the first
24anniversary of retirement. For any person who has service
25credit in the System for the entire period from January 15,
261969 through December 31, 1992, regardless of the date of

 

 

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1termination of service, the reference to age 55 in clause (1)
2of this subsection (b) shall be deemed to mean age 50.
3    This subsection (b) does not apply to any person who first
4becomes a member of the System after August 8, 2003 (the
5effective date of Public Act 93-494) this amendatory Act of the
693rd General Assembly.
7    (b-5) Except as provided in subsection (f), a Tier 2
8Notwithstanding any other provision of this Article, a
9participant who first becomes a participant on or after January
101, 2011 (the effective date of Public Act 96-889) shall, in
11January or July next following the first anniversary of
12retirement, whichever occurs first, and in the same month of
13each year thereafter, but in no event prior to age 67, have the
14amount of the retirement annuity then being paid increased by
153% or the annual unadjusted percentage increase in the Consumer
16Price Index for All Urban Consumers as determined by the Public
17Pension Division of the Department of Insurance under
18subsection (a) of Section 2-108.1, whichever is less.
19    (c) The foregoing provisions relating to automatic
20increases are not applicable to a participant who retires
21before having made contributions (at the rate prescribed in
22Section 2-126) for automatic increases for less than the
23equivalent of one full year. However, in order to be eligible
24for the automatic increases, such a participant may make
25arrangements to pay to the system the amount required to bring
26the total contributions for the automatic increase to the

 

 

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1equivalent of one year's contributions based upon his or her
2last salary.
3    (d) A participant who terminated service prior to July 1,
41967, with at least 14 years of service is entitled to an
5increase in retirement annuity beginning January, 1976, and to
6additional increases in January of each year thereafter.
7    The initial increase shall be 1 1/2% of the originally
8granted retirement annuity multiplied by the number of full
9years that the annuitant was in receipt of such annuity prior
10to January 1, 1972, plus 2% of the originally granted
11retirement annuity for each year after that date. The
12subsequent annual increases shall be at the rate of 2% of the
13originally granted retirement annuity for each year through
141979 and at the rate of 3% for 1980 and thereafter.
15    (e) Beginning January 1, 1990 and until the effective date
16of this amendatory Act of the 98th General Assembly, all
17automatic annual increases payable under subsection (a), (b),
18or (d) of this Section shall be calculated as a percentage of
19the total annuity payable at the time of the increase,
20including previous increases granted under this Article.
21    (f) Notwithstanding any other provision of this Article,
22beginning on the effective date of this amendatory Act of the
2398th General Assembly, each annual increase under this Section
24shall be calculated as 3% or one-half the annual unadjusted
25percentage increase in the Consumer Price Index-U for the 12
26months ending with the preceding September, whichever is less,

 

 

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1of the originally granted annuity. If the annual unadjusted
2percentage change is zero or there is a decrease, then the
3annuity shall not be increased. For the purposes of this
4Section, "Consumer Price Index-U" means the index published by
5the Bureau of Labor Statistics of the United States Department
6of Labor that measures the average change in prices of goods
7and services purchased by all urban consumers, United States
8city average, all items, 1982-84 = 100. This subsection applies
9to all future, current, and former Tier 1 and Tier 2
10participants, including annuitants and persons not in service
11on or after the effective date of this amendatory Act of the
1298th General Assembly.
13(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
14    (40 ILCS 5/2-121.1)  (from Ch. 108 1/2, par. 2-121.1)
15    Sec. 2-121.1. Survivor's annuity - amount.
16    (a) Except as otherwise provided in this Section, a A
17surviving spouse shall be entitled to 66 2/3% of the amount of
18retirement annuity to which the participant or annuitant was
19entitled on the date of death, without regard to whether the
20participant had attained age 55 prior to his or her death,
21subject to a minimum payment of 10% of salary. If a surviving
22spouse, regardless of age, has in his or her care at the date
23of death any eligible child or children of the participant, the
24survivor's annuity shall be the greater of the following: (1)
2566 2/3% of the amount of retirement annuity to which the

 

 

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1participant or annuitant was entitled on the date of death, or
2(2) 30% of the participant's salary increased by 10% of salary
3on account of each such child, subject to a total payment for
4the surviving spouse and children of 50% of salary. If eligible
5children survive but there is no surviving spouse, or if the
6surviving spouse dies or becomes disqualified by remarriage
7while eligible children survive, each eligible child shall be
8entitled to an annuity of 20% of salary, subject to a maximum
9total payment for all such children of 50% of salary.
10    However, the survivor's annuity payable under this Section
11shall not be less than 100% of the amount of retirement annuity
12to which the participant or annuitant was entitled on the date
13of death, if he or she is survived by a dependent disabled
14child.
15    The salary to be used for determining these benefits shall
16be the salary used for determining the amount of retirement
17annuity as provided in Section 2-119.01.
18    (b) Upon the death of a participant after the termination
19of service or upon death of an annuitant, the maximum total
20payment to a surviving spouse and eligible children, or to
21eligible children alone if there is no surviving spouse, shall
22be 75% of the retirement annuity to which the participant or
23annuitant was entitled, unless there is a dependent disabled
24child among the survivors.
25    (c) When a child ceases to be an eligible child, the
26annuity to that child, or to the surviving spouse on account of

 

 

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1that child, shall thereupon cease, and the annuity payable to
2the surviving spouse or other eligible children shall be
3recalculated if necessary.
4    Upon the ineligibility of the last eligible child, the
5annuity shall immediately revert to the amount payable upon
6death of a participant or annuitant who leaves no eligible
7children. If the surviving spouse is then under age 50, the
8annuity as revised shall be deferred until the attainment of
9age 50.
10    (d) Except as provided in subsections (d-3) and (d-5),
11beginning Beginning January 1, 1990 and ending on the effective
12date of this amendatory Act of the 98th General Assembly, every
13survivor's annuity shall be increased (1) on each January 1
14occurring on or after the commencement of the annuity if the
15deceased member died while receiving a retirement annuity, or
16(2) in other cases, on each January 1 occurring on or after the
17first anniversary of the commencement of the annuity, by an
18amount equal to 3% of the current amount of the annuity,
19including any previous increases under this Article. Such
20increases shall apply without regard to whether the deceased
21member was in service on or after the effective date of this
22amendatory Act of 1991, but shall not accrue for any period
23prior to January 1, 1990.
24    (d-3) Notwithstanding any other provision of this Article,
25beginning on the effective date of this amendatory Act of the
2698th General Assembly, each annual increase under this Section

 

 

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1shall be calculated as 3% or one-half the annual unadjusted
2percentage increase in the Consumer Price Index-U for the 12
3months ending with the preceding September, whichever is less,
4of the originally granted survivor's annuity. If the annual
5unadjusted percentage change is zero or there is a decrease,
6then the annuity shall not be increased. For the purposes of
7this Section, "Consumer Price Index-U" means the index
8published by the Bureau of Labor Statistics of the United
9States Department of Labor that measures the average change in
10prices of goods and services purchased by all urban consumers,
11United States city average, all items, 1982-84 = 100. This
12subsection applies to survivors of all future, current, and
13former Tier 1 and Tier 2 participants, including annuitants and
14persons not in service on or after the effective date of this
15amendatory Act of the 98th General Assembly.
16    (d-5) Subject to subsection (d-3), but notwithstanding
17Notwithstanding any other provision of this Article, the
18initial survivor's annuity of a survivor of a Tier 2
19participant who first becomes a participant on or after January
201, 2011 (the effective date of Public Act 96-889) shall be in
21the amount of 66 2/3% of the amount of the retirement annuity
22to which the participant or annuitant was entitled on the date
23of death and shall be increased (1) on each January 1 occurring
24on or after the commencement of the annuity if the deceased
25member died while receiving a retirement annuity or (2) in
26other cases, on each January 1 occurring on or after the first

 

 

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1anniversary of the commencement of the annuity, by an amount
2equal to 3% or the annual unadjusted percentage increase in the
3Consumer Price Index for All Urban Consumers as determined by
4the Public Pension Division of the Department of Insurance
5under subsection (a) of Section 2-108.1, whichever is less, of
6the survivor's annuity then being paid.
7    (e) Notwithstanding any other provision of this Article,
8beginning January 1, 1990, the minimum survivor's annuity
9payable to any person who is entitled to receive a survivor's
10annuity under this Article shall be $300 per month, without
11regard to whether or not the deceased participant was in
12service on the effective date of this amendatory Act of 1989.
13    (f) In the case of a proportional survivor's annuity
14arising under the Retirement Systems Reciprocal Act where the
15amount payable by the System on January 1, 1993 is less than
16$300 per month, the amount payable by the System shall be
17increased beginning on that date by a monthly amount equal to
18$2 for each full year that has expired since the annuity began.
19(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
20    (40 ILCS 5/14-103.40 new)
21    Sec. 14-103.40. Tier 1 employee. "Tier 1 employee": An
22employee who first became a member or participant before
23January 1, 2011 under any reciprocal retirement system or
24pension fund established under this Code other than a
25retirement system or pension fund established under Article 2,

 

 

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13, 4, 5, 6, or 18 of this Code.
 
2    (40 ILCS 5/14-103.41 new)
3    Sec. 14-103.41. Tier 2 employee. "Tier 2 employee" means an
4employee who is subject to Section 1-160 of this Code.
 
5    (40 ILCS 5/14-114)  (from Ch. 108 1/2, par. 14-114)
6    Sec. 14-114. Automatic increase in retirement annuity.
7    (a) Except as provided in subsection (a-5), any Any person
8receiving a retirement annuity under this Article who retires
9having attained age 60, or who retires before age 60 having at
10least 35 years of creditable service, or who retires on or
11after January 1, 2001 at an age which, when added to the number
12of years of his or her creditable service, equals at least 85,
13shall, on January 1 next following the first full year of
14retirement, have the amount of the then fixed and payable
15monthly retirement annuity increased 3%. Except as provided in
16subsection (a-5), any Any person receiving a retirement annuity
17under this Article who retires before attainment of age 60 and
18with less than (i) 35 years of creditable service if retirement
19is before January 1, 2001, or (ii) the number of years of
20creditable service which, when added to the member's age, would
21equal 85, if retirement is on or after January 1, 2001, shall
22have the amount of the fixed and payable retirement annuity
23increased by 3% on the January 1 occurring on or next following
24(1) attainment of age 60, or (2) the first anniversary of

 

 

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1retirement, whichever occurs later. However, for persons who
2receive the alternative retirement annuity under Section
314-110, references in this subsection (a) to attainment of age
460 shall be deemed to refer to attainment of age 55. For a
5person receiving early retirement incentives under Section
614-108.3 whose retirement annuity began after January 1, 1992
7pursuant to an extension granted under subsection (e) of that
8Section, the first anniversary of retirement shall be deemed to
9be January 1, 1993. For a person who retires on or after June
1028, 2001 and on or before October 1, 2001, and whose retirement
11annuity is calculated, in whole or in part, under Section
1214-110 or subsection (g) or (h) of Section 14-108, the first
13anniversary of retirement shall be deemed to be January 1,
142002.
15    Subject to the provisions of subsection (a-5), on On each
16January 1 following the date of the initial increase under this
17subsection, the employee's monthly retirement annuity shall be
18increased by an additional 3%.
19    Beginning January 1, 1990 and until the effective date of
20this amendatory Act of the 98th General Assembly, all automatic
21annual increases payable under this Section shall be calculated
22as a percentage of the total annuity payable at the time of the
23increase, including previous increases granted under this
24Article.
25    (a-5) Notwithstanding any other provision of this Article,
26beginning on the effective date of this amendatory Act of the

 

 

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198th General Assembly, each annual increase under this Section
2shall be calculated as 3% or one-half the annual unadjusted
3percentage increase in the Consumer Price Index-U for the 12
4months ending with the preceding September, whichever is less,
5of the originally granted annuity. If the annual unadjusted
6percentage change is zero or there is a decrease, then the
7annuity shall not be increased. For the purposes of this
8Section, "Consumer Price Index-U" means the index published by
9the Bureau of Labor Statistics of the United States Department
10of Labor that measures the average change in prices of goods
11and services purchased by all urban consumers, United States
12city average, all items, 1982-84 = 100. This subsection applies
13to all future, current, and former Tier 1 employees, including
14annuitants and persons not in service on or after the effective
15date of this amendatory Act of the 98th General Assembly.
16    (b) The provisions of subsection (a) or (a-5) of this
17Section shall be applicable to an employee only if the employee
18makes the additional contributions required after December 31,
191969 for the purpose of the automatic increases for not less
20than the equivalent of one full year. If an employee becomes an
21annuitant before his additional contributions equal one full
22year's contributions based on his salary at the date of
23retirement, the employee may pay the necessary balance of the
24contributions to the system, without interest, and be eligible
25for the increasing annuity authorized by this Section.
26    (c) The provisions of subsection (a) or (a-5) of this

 

 

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1Section shall not be applicable to any annuitant who is on
2retirement on December 31, 1969, and thereafter returns to
3State service, unless the member has established at least one
4year of additional creditable service following reentry into
5service.
6    (d) In addition to other increases which may be provided by
7this Section, on January 1, 1981 any annuitant who was
8receiving a retirement annuity on or before January 1, 1971
9shall have his retirement annuity then being paid increased $1
10per month for each year of creditable service. On January 1,
111982, any annuitant who began receiving a retirement annuity on
12or before January 1, 1977, shall have his retirement annuity
13then being paid increased $1 per month for each year of
14creditable service.
15    On January 1, 1987, any annuitant who began receiving a
16retirement annuity on or before January 1, 1977, shall have the
17monthly retirement annuity increased by an amount equal to 8
18per year of creditable service times the number of years that
19have elapsed since the annuity began.
20    (e) Every person who receives the alternative retirement
21annuity under Section 14-110 and who is eligible to receive the
223% increase under subsection (a) on January 1, 1986, shall also
23receive on that date a one-time increase in retirement annuity
24equal to the difference between (1) his actual retirement
25annuity on that date, including any increases received under
26subsection (a), and (2) the amount of retirement annuity he

 

 

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1would have received on that date if the amendments to
2subsection (a) made by Public Act 84-162 had been in effect
3since the date of his retirement.
4(Source: P.A. 91-927, eff. 12-14-00; 92-14, eff. 6-28-01;
592-651, eff. 7-11-02.)
 
6    (40 ILCS 5/14-119)  (from Ch. 108 1/2, par. 14-119)
7    Sec. 14-119. Amount of widow's annuity.
8    (a) The widow's annuity shall be 50% of the amount of
9retirement annuity payable to the member on the date of death
10while on retirement if an annuitant, or on the date of his
11death while in service if an employee, regardless of his age on
12such date, or on the date of withdrawal if death occurred after
13termination of service under the conditions prescribed in the
14preceding Section.
15    (b) If an eligible widow, regardless of age, has in her
16care any unmarried child or children of the member under age 18
17(under age 22 if a full-time student), the widow's annuity
18shall be increased in the amount of 5% of the retirement
19annuity for each such child, but the combined payments for a
20widow and children shall not exceed 66 2/3% of the member's
21earned retirement annuity.
22    The amount of retirement annuity from which the widow's
23annuity is derived shall be that earned by the member without
24regard to whether he attained age 60 prior to his withdrawal
25under the conditions stated or prior to his death.

 

 

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1    (c) Marriage of a child shall render the child ineligible
2for further consideration in the increase in the amount of the
3widow's annuity.
4    Attainment of age 18 (age 22 if a full-time student) shall
5render a child ineligible for further consideration in the
6increase of the widow's annuity, but the annuity to the widow
7shall be continued thereafter, without regard to her age at
8that time.
9    (d) Except as otherwise provided in this subsection (d), a
10widow's annuity payable on account of any covered employee who
11has been a covered employee for at least 18 months shall be
12reduced by 1/2 of the amount of survivors benefits to which his
13beneficiaries are eligible under the provisions of the Federal
14Social Security Act, except that (1) the amount of any widow's
15annuity payable under this Article shall not be reduced by
16reason of any increase under that Act which occurs after the
17offset required by this subsection is first applied to that
18annuity, and (2) for benefits granted on or after January 1,
191992, the offset under this subsection (d) shall not exceed 50%
20of the amount of widow's annuity otherwise payable.
21    Beginning July 1, 2009, the offset under this subsection
22(d) shall no longer be applied to any widow's annuity of any
23person who began receiving retirement benefits or a widow's
24annuity prior to January 1, 1998.
25    Beginning July 1, 2009, the offset under this subsection
26(d) shall no longer be applied to the widow's annuity of any

 

 

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1person who began receiving a widow's annuity on or after
2January 1, 1998 and before the effective date of this
3amendatory Act of the 95th General Assembly.
4    Any person who began receiving retirement benefits after
5January 1, 1998 and before the effective date of this
6amendatory Act of the 95th General Assembly may, during a
7one-time election period established by the System, elect to
8reduce his or her retirement annuity by 3.825% in exchange for
9not having the offset under this subsection (d) applied to his
10or her widow's annuity.
11    Any employee in service on the effective date of this
12amendatory Act of the 95th General Assembly may, at the time of
13retirement, elect to reduce his or her retirement annuity by
143.825% in exchange for not having the offset under this
15subsection (d) applied to his or her widow's annuity.
16    If a widow's annuity is payable to the widow of an employee
17based on the employee's death in service, then the offset under
18this subsection (d) shall no longer be applied to the widow's
19annuity.
20    A retiree who elects to reduce his or her retirement
21annuity under this subsection (d) in exchange for not having
22the offset applied may make an irrevocable election to
23eliminate the reduction of his or her retirement annuity if
24there is a change in marital status due to death or divorce,
25but the retiree is not entitled to reimbursement of any benefit
26reduction prior to the election.

 

 

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1    (e) Upon the death of a recipient of a widow's annuity the
2excess, if any, of the member's accumulated contributions plus
3credited interest over all annuity payments to the member and
4widow, exclusive of the $500 lump sum payment, shall be paid to
5the named beneficiary of the widow, or if none has been named,
6to the estate of the widow, provided no reversionary annuity is
7payable.
8    (f) On January 1, 1981, any recipient of a widow's annuity
9who was receiving a widow's annuity on or before January 1,
101971, shall have her widow's annuity then being paid increased
11by 1% for each full year which has elapsed from the date the
12widow's annuity began. On January 1, 1982, any recipient of a
13widow's annuity who began receiving a widow's annuity after
14January 1, 1971, but before January 1, 1981, shall have her
15widow's annuity then being paid increased by 1% for each full
16year which has elapsed from the date the widow's annuity began.
17On January 1, 1987, any recipient of a widow's annuity who
18began receiving the widow's annuity on or before January 1,
191977, shall have the monthly widow's annuity increased by $1
20for each full year which has elapsed since the date the annuity
21began.
22    (g) Subject to the provisions of subsection (g-5),
23beginning Beginning January 1, 1990, every widow's annuity
24shall be increased (1) on each January 1 occurring on or after
25the commencement of the annuity if the deceased member died
26while receiving a retirement annuity, or (2) in other cases, on

 

 

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1each January 1 occurring on or after the first anniversary of
2the commencement of the annuity, by an amount equal to 3% of
3the current amount of the annuity, including any previous
4increases under this Article. Such increases shall apply
5without regard to whether the deceased member was in service on
6or after the effective date of Public Act 86-1488, but shall
7not accrue for any period prior to January 1, 1990.
8    (g-5) Notwithstanding any other provision of this Article,
9beginning on the effective date of this amendatory Act of the
1098th General Assembly, each annual increase under this Section
11shall be calculated as 3% or one-half the annual unadjusted
12percentage increase in the Consumer Price Index-U for the 12
13months ending with the preceding September, whichever is less,
14of the originally granted annuity. If the annual unadjusted
15percentage change is zero or there is a decrease, then the
16annuity shall not be increased. For the purposes of this
17Section, "Consumer Price Index-U" means the index published by
18the Bureau of Labor Statistics of the United States Department
19of Labor that measures the average change in prices of goods
20and services purchased by all urban consumers, United States
21city average, all items, 1982-84 = 100. This subsection applies
22to survivors of all future, current, and former Tier 1
23employees, including annuitants and persons not in service on
24or after the effective date of this amendatory Act of the 98th
25General Assembly.
26(Source: P.A. 95-279, eff. 1-1-08; 95-1043, eff. 3-26-09.)
 

 

 

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1    (40 ILCS 5/14-121)  (from Ch. 108 1/2, par. 14-121)
2    Sec. 14-121. Amount of survivors annuity. A survivors
3annuity beneficiary shall be entitled upon death of the member
4to a single sum payment of $1,000, payable pro rata among all
5persons entitled thereto, together with a survivors annuity
6payable at the rates and under the conditions specified in this
7Article.
8    (a) If the survivors annuity beneficiary is a spouse, the
9survivors annuity shall be 30% of final average compensation
10subject to a maximum payment of $400 per month.
11    (b) If an eligible child or children under the care of a
12spouse also survives the member, such spouse as natural
13guardian of the child or children shall receive, in addition to
14the foregoing annuity, 20% of final average compensation on
15account of each such child and 10% of final average
16compensation divided pro rata among such children, subject to a
17maximum payment on account of all survivor annuity
18beneficiaries of $600 per month, or 80% of the member's final
19average compensation, whichever is the lesser.
20    (c) If the survivors annuity beneficiary or beneficiaries
21consists of an unmarried child or children, the amount of
22survivors annuity shall be 20% of final average compensation to
23each child, and 10% of final average compensation divided pro
24rata among all such children entitled to such annuity, subject
25to a maximum payment to all children combined of $600 per month

 

 

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1or 80% of the member's final average compensation, whichever is
2the lesser.
3    (d) If the survivors annuity beneficiary is one or more
4dependent parents, the annuity shall be 20% of final average
5compensation to each parent and 10% of final average
6compensation divided pro rata among the parents who qualify for
7this annuity, subject to a maximum payment to both dependent
8parents of $400 per month.
9    (e) The survivors annuity to the spouse, children or
10dependent parents of a member whose death occurs after the date
11of last withdrawal, or after retirement, or while in service
12following reentry into service after retirement but before
13completing 1 1/2 years of additional creditable service, shall
14not exceed the lesser of 80% of the member's earned retirement
15annuity at the date of death or the maximum previously
16established in this Section.
17    (f) In applying the limitation prescribed on the combined
18payments to 2 or more survivors annuity beneficiaries, the
19annuity on account of each beneficiary shall be reduced pro
20rata until such time as the number of beneficiaries makes the
21reduction no longer applicable.
22    (g) Except as otherwise provided in this subsection (g), a
23survivors annuity payable on account of any covered employee
24who has been a covered employee for at least 18 months at date
25of death or last withdrawal, whichever is the later, shall be
26reduced by 1/2 of the survivors benefits to which his

 

 

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1beneficiaries are eligible under the federal Social Security
2Act, except that (1) the survivors annuity payable under this
3Article shall not be reduced by any increase under that Act
4which occurs after the offset required by this subsection is
5first applied to that annuity, (2) for benefits granted on or
6after January 1, 1992, the offset under this subsection (g)
7shall not exceed 50% of the amount of survivors annuity
8otherwise payable.
9    Beginning July 1, 2009, the offset under this subsection
10(g) shall no longer be applied to any survivors annuity of any
11person who began receiving retirement benefits or a survivors
12annuity prior to January 1, 1998.
13    Beginning July 1, 2009, the offset under this subsection
14(g) shall no longer be applied to the survivors annuity of any
15person who began receiving a survivors annuity on or after
16January 1, 1998 and before the effective date of this
17amendatory Act of the 95th General Assembly.
18    Any person who began receiving retirement benefits after
19January 1, 1998 and before the effective date of this
20amendatory Act of the 95th General Assembly may, during a
21one-time election period established by the System, elect to
22reduce his or her retirement annuity by 3.825% in exchange for
23not having the offset under this subsection (g) applied to his
24or her survivors annuity.
25    Any employee in service on the effective date of this
26amendatory Act of the 95th General Assembly may, at the time of

 

 

HB2725- 22 -LRB098 07543 EFG 37614 b

1retirement, elect to reduce his or her retirement annuity by
23.825% in exchange for not having the offset under this
3subsection (g) applied to his or her survivors annuity.
4    If a survivors annuity is payable to the widow of an
5employee based on the employee's death in service, then the
6offset under this subsection (g) shall no longer be applied to
7the survivors annuity.
8    A retiree who elects to reduce his or her retirement
9annuity under this subsection (g) in exchange for not having
10the offset applied may make an irrevocable election to
11eliminate the reduction of his or her retirement annuity if
12there is a change in marital status due to death or divorce,
13but the retiree is not entitled to reimbursement of any benefit
14reduction prior to the election.
15    (h) The minimum payment to a beneficiary hereunder shall be
16$60 per month, which shall be reduced in accordance with the
17limitation prescribed on the combined payments to all
18beneficiaries of a member.
19    (i) Subject to the conditions set forth in Section 14-120,
20the minimum total survivors annuity benefit payable to the
21survivors annuity beneficiaries of a deceased member or
22annuitant whose death occurs on or after January 1, 1984, shall
23be 50% of the amount of retirement annuity that was or would
24have been payable to the deceased on the date of death,
25regardless of the age of the deceased on such date. If the
26minimum total benefit provided by this subsection exceeds the

 

 

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1maximum otherwise imposed by this Section, the minimum total
2benefit shall nevertheless be payable. Any increase in the
3total survivors annuity benefit resulting from the operation of
4this subsection shall be divided among the survivors annuity
5beneficiaries of the deceased in proportion to their shares of
6the total survivors annuity benefit otherwise payable under
7this Section.
8    (j) Any survivors annuity beneficiary whose annuity
9terminates due to any condition specified in this Article other
10than death shall be entitled to a refund of the excess, if any,
11of the accumulated contributions of the member plus credited
12interest over all payments to the member and beneficiary or
13beneficiaries, exclusive of the single sum payment of $1,000,
14provided no future survivors or reversionary annuity benefits
15are payable.
16    (k) Upon the death of the last eligible recipient of a
17survivors annuity the excess, if any, of the member's
18accumulated contributions plus credited interest over all
19annuity payments to the member and survivors exclusive of the
20single sum payment of $1000, shall be paid to the named
21beneficiary of the last eligible survivor, or if none has been
22named, to the estate of the last eligible survivor, provided no
23reversionary annuity is payable.
24    (l) On January 1, 1981, any survivor who was receiving a
25survivors annuity on or before January 1, 1971, shall have his
26survivors annuity then being paid increased by 1% for each full

 

 

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1year which has elapsed from the date the annuity began. On
2January 1, 1982, any survivor who began receiving a survivor's
3annuity after January 1, 1971, but before January 1, 1981,
4shall have his survivor's annuity then being paid increased by
51% for each full year that has elapsed from the date the
6annuity began. On January 1, 1987, any survivor who began
7receiving a survivor's annuity on or before January 1, 1977,
8shall have the monthly survivor's annuity increased by $1 for
9each full year which has elapsed since the date the survivor's
10annuity began.
11    (m) Subject to the provisions of subsection (m-5),
12beginning Beginning January 1, 1990, every survivor's annuity
13shall be increased (1) on each January 1 occurring on or after
14the commencement of the annuity if the deceased member died
15while receiving a retirement annuity, or (2) in other cases, on
16each January 1 occurring on or after the first anniversary of
17the commencement of the annuity, by an amount equal to 3% of
18the current amount of the annuity, including any previous
19increases under this Article. Such increases shall apply
20without regard to whether the deceased member was in service on
21or after the effective date of Public Act 86-1488, but shall
22not accrue for any period prior to January 1, 1990.
23    (m-5) Notwithstanding any other provision of this Article,
24beginning on the effective date of this amendatory Act of the
2598th General Assembly, each annual increase under this Section
26shall be calculated as 3% or one-half the annual unadjusted

 

 

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1percentage increase in the Consumer Price Index-U for the 12
2months ending with the preceding September, whichever is less,
3of the originally granted annuity. If the annual unadjusted
4percentage change is zero or there is a decrease, then the
5annuity shall not be increased. For the purposes of this
6Section, "Consumer Price Index-U" means the index published by
7the Bureau of Labor Statistics of the United States Department
8of Labor that measures the average change in prices of goods
9and services purchased by all urban consumers, United States
10city average, all items, 1982-84 = 100. This subsection applies
11to survivors of all future, current, and former Tier 1
12employees, including annuitants and persons not in service on
13or after the effective date of this amendatory Act of the 98th
14General Assembly.
15(Source: P.A. 95-1043, eff. 3-26-09.)
 
16    (40 ILCS 5/14-125.1)  (from Ch. 108 1/2, par. 14-125.1)
17    Sec. 14-125.1. Automatic increase in disability benefit.
18     (a) Each disability benefit payable under Section 14-123
19or 14-124 shall be increased by 7% of the original fixed amount
20of such benefit on January 1, 1986 or January 1 following the
21fourth anniversary of the granting of the benefit, whichever
22occurs later. Except as provided in subsection (b), on On each
23January 1 following the 7% increase, but not earlier than
24January 1, 1991, the disability benefit shall be increased by
253% of the current amount of the benefit, including prior

 

 

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1increases under this Article.
2    (b) Notwithstanding any other provision of this Article,
3beginning on the effective date of this amendatory Act of the
498th General Assembly, each annual increase after the initial
5increase under this Section shall be calculated as 3% or
6one-half the annual unadjusted percentage increase in the
7Consumer Price Index-U for the 12 months ending with the
8preceding September, whichever is less, of the originally
9granted annuity. If the annual unadjusted percentage change is
10zero or there is a decrease, then the annuity shall not be
11increased. For the purposes of this Section, "Consumer Price
12Index-U" means the index published by the Bureau of Labor
13Statistics of the United States Department of Labor that
14measures the average change in prices of goods and services
15purchased by all urban consumers, United States city average,
16all items, 1982-84 = 100. This subsection applies to all
17future, current, and former Tier 1 employees, including
18annuitants and persons not in service on or after the effective
19date of this amendatory Act of the 98th General Assembly.
20(Source: P.A. 86-1488.)
 
21    (40 ILCS 5/15-107.1 new)
22    Sec. 15-107.1. Tier 1 employee. "Tier 1 employee": An
23employee, other than a participant in the self-managed plan
24under Section 15-158.2, who first became a member or
25participant before January 1, 2011 under any reciprocal

 

 

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1retirement system or pension fund established under this Code
2other than a retirement system or pension fund established
3under Article 2, 3, 4, 5, 6, or 18 of this Code.
 
4    (40 ILCS 5/15-107.2 new)
5    Sec. 15-107.2. Tier 2 employee. "Tier 2 employee" means an
6employee who is subject to Section 1-160 of this Code.
 
7    (40 ILCS 5/15-136)  (from Ch. 108 1/2, par. 15-136)
8    Sec. 15-136. Retirement annuities - Amount. The provisions
9of this Section 15-136 apply only to those participants who are
10participating in the traditional benefit package or the
11portable benefit package and do not apply to participants who
12are participating in the self-managed plan.
13    (a) The amount of a participant's retirement annuity,
14expressed in the form of a single-life annuity, shall be
15determined by whichever of the following rules is applicable
16and provides the largest annuity:
17    Rule 1: The retirement annuity shall be 1.67% of final rate
18of earnings for each of the first 10 years of service, 1.90%
19for each of the next 10 years of service, 2.10% for each year
20of service in excess of 20 but not exceeding 30, and 2.30% for
21each year in excess of 30; or for persons who retire on or
22after January 1, 1998, 2.2% of the final rate of earnings for
23each year of service.
24    Rule 2: The retirement annuity shall be the sum of the

 

 

HB2725- 28 -LRB098 07543 EFG 37614 b

1following, determined from amounts credited to the participant
2in accordance with the actuarial tables and the effective rate
3of interest in effect at the time the retirement annuity
4begins:
5        (i) the normal annuity which can be provided on an
6    actuarially equivalent basis, by the accumulated normal
7    contributions as of the date the annuity begins;
8        (ii) an annuity from employer contributions of an
9    amount equal to that which can be provided on an
10    actuarially equivalent basis from the accumulated normal
11    contributions made by the participant under Section
12    15-113.6 and Section 15-113.7 plus 1.4 times all other
13    accumulated normal contributions made by the participant;
14    and
15        (iii) the annuity that can be provided on an
16    actuarially equivalent basis from the entire contribution
17    made by the participant under Section 15-113.3.
18    With respect to a police officer or firefighter who retires
19on or after August 14, 1998, the accumulated normal
20contributions taken into account under clauses (i) and (ii) of
21this Rule 2 shall include the additional normal contributions
22made by the police officer or firefighter under Section
2315-157(a).
24    The amount of a retirement annuity calculated under this
25Rule 2 shall be computed solely on the basis of the
26participant's accumulated normal contributions, as specified

 

 

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1in this Rule and defined in Section 15-116. Neither an employee
2or employer contribution for early retirement under Section
315-136.2 nor any other employer contribution shall be used in
4the calculation of the amount of a retirement annuity under
5this Rule 2.
6    This amendatory Act of the 91st General Assembly is a
7clarification of existing law and applies to every participant
8and annuitant without regard to whether status as an employee
9terminates before the effective date of this amendatory Act.
10    This Rule 2 does not apply to a person who first becomes an
11employee under this Article on or after July 1, 2005.
12    Rule 3: The retirement annuity of a participant who is
13employed at least one-half time during the period on which his
14or her final rate of earnings is based, shall be equal to the
15participant's years of service not to exceed 30, multiplied by
16(1) $96 if the participant's final rate of earnings is less
17than $3,500, (2) $108 if the final rate of earnings is at least
18$3,500 but less than $4,500, (3) $120 if the final rate of
19earnings is at least $4,500 but less than $5,500, (4) $132 if
20the final rate of earnings is at least $5,500 but less than
21$6,500, (5) $144 if the final rate of earnings is at least
22$6,500 but less than $7,500, (6) $156 if the final rate of
23earnings is at least $7,500 but less than $8,500, (7) $168 if
24the final rate of earnings is at least $8,500 but less than
25$9,500, and (8) $180 if the final rate of earnings is $9,500 or
26more, except that the annuity for those persons having made an

 

 

HB2725- 30 -LRB098 07543 EFG 37614 b

1election under Section 15-154(a-1) shall be calculated and
2payable under the portable retirement benefit program pursuant
3to the provisions of Section 15-136.4.
4    Rule 4: A participant who is at least age 50 and has 25 or
5more years of service as a police officer or firefighter, and a
6participant who is age 55 or over and has at least 20 but less
7than 25 years of service as a police officer or firefighter,
8shall be entitled to a retirement annuity of 2 1/4% of the
9final rate of earnings for each of the first 10 years of
10service as a police officer or firefighter, 2 1/2% for each of
11the next 10 years of service as a police officer or
12firefighter, and 2 3/4% for each year of service as a police
13officer or firefighter in excess of 20. The retirement annuity
14for all other service shall be computed under Rule 1.
15    For purposes of this Rule 4, a participant's service as a
16firefighter shall also include the following:
17        (i) service that is performed while the person is an
18    employee under subsection (h) of Section 15-107; and
19        (ii) in the case of an individual who was a
20    participating employee employed in the fire department of
21    the University of Illinois's Champaign-Urbana campus
22    immediately prior to the elimination of that fire
23    department and who immediately after the elimination of
24    that fire department transferred to another job with the
25    University of Illinois, service performed as an employee of
26    the University of Illinois in a position other than police

 

 

HB2725- 31 -LRB098 07543 EFG 37614 b

1    officer or firefighter, from the date of that transfer
2    until the employee's next termination of service with the
3    University of Illinois.
4    Rule 5: The retirement annuity of a participant who elected
5early retirement under the provisions of Section 15-136.2 and
6who, on or before February 16, 1995, brought administrative
7proceedings pursuant to the administrative rules adopted by the
8System to challenge the calculation of his or her retirement
9annuity shall be the sum of the following, determined from
10amounts credited to the participant in accordance with the
11actuarial tables and the prescribed rate of interest in effect
12at the time the retirement annuity begins:
13        (i) the normal annuity which can be provided on an
14    actuarially equivalent basis, by the accumulated normal
15    contributions as of the date the annuity begins; and
16        (ii) an annuity from employer contributions of an
17    amount equal to that which can be provided on an
18    actuarially equivalent basis from the accumulated normal
19    contributions made by the participant under Section
20    15-113.6 and Section 15-113.7 plus 1.4 times all other
21    accumulated normal contributions made by the participant;
22    and
23        (iii) an annuity which can be provided on an
24    actuarially equivalent basis from the employee
25    contribution for early retirement under Section 15-136.2,
26    and an annuity from employer contributions of an amount

 

 

HB2725- 32 -LRB098 07543 EFG 37614 b

1    equal to that which can be provided on an actuarially
2    equivalent basis from the employee contribution for early
3    retirement under Section 15-136.2.
4    In no event shall a retirement annuity under this Rule 5 be
5lower than the amount obtained by adding (1) the monthly amount
6obtained by dividing the combined employee and employer
7contributions made under Section 15-136.2 by the System's
8annuity factor for the age of the participant at the beginning
9of the annuity payment period and (2) the amount equal to the
10participant's annuity if calculated under Rule 1, reduced under
11Section 15-136(b) as if no contributions had been made under
12Section 15-136.2.
13    With respect to a participant who is qualified for a
14retirement annuity under this Rule 5 whose retirement annuity
15began before the effective date of this amendatory Act of the
1691st General Assembly, and for whom an employee contribution
17was made under Section 15-136.2, the System shall recalculate
18the retirement annuity under this Rule 5 and shall pay any
19additional amounts due in the manner provided in Section
2015-186.1 for benefits mistakenly set too low.
21    The amount of a retirement annuity calculated under this
22Rule 5 shall be computed solely on the basis of those
23contributions specifically set forth in this Rule 5. Except as
24provided in clause (iii) of this Rule 5, neither an employee
25nor employer contribution for early retirement under Section
2615-136.2, nor any other employer contribution, shall be used in

 

 

HB2725- 33 -LRB098 07543 EFG 37614 b

1the calculation of the amount of a retirement annuity under
2this Rule 5.
3    The General Assembly has adopted the changes set forth in
4Section 25 of this amendatory Act of the 91st General Assembly
5in recognition that the decision of the Appellate Court for the
6Fourth District in Mattis v. State Universities Retirement
7System et al. might be deemed to give some right to the
8plaintiff in that case. The changes made by Section 25 of this
9amendatory Act of the 91st General Assembly are a legislative
10implementation of the decision of the Appellate Court for the
11Fourth District in Mattis v. State Universities Retirement
12System et al. with respect to that plaintiff.
13    The changes made by Section 25 of this amendatory Act of
14the 91st General Assembly apply without regard to whether the
15person is in service as an employee on or after its effective
16date.
17    (b) The retirement annuity provided under Rules 1 and 3
18above shall be reduced by 1/2 of 1% for each month the
19participant is under age 60 at the time of retirement. However,
20this reduction shall not apply in the following cases:
21        (1) For a disabled participant whose disability
22    benefits have been discontinued because he or she has
23    exhausted eligibility for disability benefits under clause
24    (6) of Section 15-152;
25        (2) For a participant who has at least the number of
26    years of service required to retire at any age under

 

 

HB2725- 34 -LRB098 07543 EFG 37614 b

1    subsection (a) of Section 15-135; or
2        (3) For that portion of a retirement annuity which has
3    been provided on account of service of the participant
4    during periods when he or she performed the duties of a
5    police officer or firefighter, if these duties were
6    performed for at least 5 years immediately preceding the
7    date the retirement annuity is to begin.
8    (c) The maximum retirement annuity provided under Rules 1,
92, 4, and 5 shall be the lesser of (1) the annual limit of
10benefits as specified in Section 415 of the Internal Revenue
11Code of 1986, as such Section may be amended from time to time
12and as such benefit limits shall be adjusted by the
13Commissioner of Internal Revenue, and (2) 80% of final rate of
14earnings.
15    (d) An annuitant whose status as an employee terminates
16after August 14, 1969 shall receive automatic increases in his
17or her retirement annuity as follows:
18    Except as provided in subsection (d-5), effective
19Effective January 1 immediately following the date the
20retirement annuity begins, the annuitant shall receive an
21increase in his or her monthly retirement annuity of 0.125% of
22the monthly retirement annuity provided under Rule 1, Rule 2,
23Rule 3, Rule 4, or Rule 5, contained in this Section,
24multiplied by the number of full months which elapsed from the
25date the retirement annuity payments began to January 1, 1972,
26plus 0.1667% of such annuity, multiplied by the number of full

 

 

HB2725- 35 -LRB098 07543 EFG 37614 b

1months which elapsed from January 1, 1972, or the date the
2retirement annuity payments began, whichever is later, to
3January 1, 1978, plus 0.25% of such annuity multiplied by the
4number of full months which elapsed from January 1, 1978, or
5the date the retirement annuity payments began, whichever is
6later, to the effective date of the increase.
7    Except as provided in subsection (d-5), the The annuitant
8shall receive an increase in his or her monthly retirement
9annuity on each January 1 thereafter during the annuitant's
10life of 3% of the monthly annuity provided under Rule 1, Rule
112, Rule 3, Rule 4, or Rule 5 contained in this Section. The
12change made under this subsection by P.A. 81-970 is effective
13January 1, 1980 and applies to each annuitant whose status as
14an employee terminates before or after that date.
15    Beginning January 1, 1990 and until the effective date of
16this amendatory Act of the 98th General Assembly, all automatic
17annual increases payable under this Section shall be calculated
18as a percentage of the total annuity payable at the time of the
19increase, including all increases previously granted under
20this Article.
21    The change made in this subsection by P.A. 85-1008 is
22effective January 26, 1988, and is applicable without regard to
23whether status as an employee terminated before that date.
24    (d-5) Notwithstanding any other provision of this Article,
25beginning on the effective date of this amendatory Act of the
2698th General Assembly, each annual increase under this Section

 

 

HB2725- 36 -LRB098 07543 EFG 37614 b

1shall be calculated as 3% or one-half the annual unadjusted
2percentage increase in the Consumer Price Index-U for the 12
3months ending with the preceding September, whichever is less,
4of the originally granted annuity. If the annual unadjusted
5percentage change is zero or there is a decrease, then the
6annuity shall not be increased. For the purposes of this
7Section, "Consumer Price Index-U" means the index published by
8the Bureau of Labor Statistics of the United States Department
9of Labor that measures the average change in prices of goods
10and services purchased by all urban consumers, United States
11city average, all items, 1982-84 = 100. This subsection applies
12to all future, current, and former Tier 1 employees, including
13annuitants and persons not in service on or after the effective
14date of this amendatory Act of the 98th General Assembly.
15    (e) If, on January 1, 1987, or the date the retirement
16annuity payment period begins, whichever is later, the sum of
17the retirement annuity provided under Rule 1 or Rule 2 of this
18Section and the automatic annual increases provided under the
19preceding subsection (d) or Section 15-136.1, amounts to less
20than the retirement annuity which would be provided by Rule 3,
21the retirement annuity shall be increased as of January 1,
221987, or the date the retirement annuity payment period begins,
23whichever is later, to the amount which would be provided by
24Rule 3 of this Section. Such increased amount shall be
25considered as the retirement annuity in determining benefits
26provided under other Sections of this Article. This paragraph

 

 

HB2725- 37 -LRB098 07543 EFG 37614 b

1applies without regard to whether status as an employee
2terminated before the effective date of this amendatory Act of
31987, provided that the annuitant was employed at least
4one-half time during the period on which the final rate of
5earnings was based.
6    (f) A participant is entitled to such additional annuity as
7may be provided on an actuarially equivalent basis, by any
8accumulated additional contributions to his or her credit.
9However, the additional contributions made by the participant
10toward the automatic increases in annuity provided under this
11Section shall not be taken into account in determining the
12amount of such additional annuity.
13    (g) If, (1) by law, a function of a governmental unit, as
14defined by Section 20-107 of this Code, is transferred in whole
15or in part to an employer, and (2) a participant transfers
16employment from such governmental unit to such employer within
176 months after the transfer of the function, and (3) the sum of
18(A) the annuity payable to the participant under Rule 1, 2, or
193 of this Section (B) all proportional annuities payable to the
20participant by all other retirement systems covered by Article
2120, and (C) the initial primary insurance amount to which the
22participant is entitled under the Social Security Act, is less
23than the retirement annuity which would have been payable if
24all of the participant's pension credits validated under
25Section 20-109 had been validated under this system, a
26supplemental annuity equal to the difference in such amounts

 

 

HB2725- 38 -LRB098 07543 EFG 37614 b

1shall be payable to the participant.
2    (h) On January 1, 1981, an annuitant who was receiving a
3retirement annuity on or before January 1, 1971 shall have his
4or her retirement annuity then being paid increased $1 per
5month for each year of creditable service. On January 1, 1982,
6an annuitant whose retirement annuity began on or before
7January 1, 1977, shall have his or her retirement annuity then
8being paid increased $1 per month for each year of creditable
9service.
10    (i) On January 1, 1987, any annuitant whose retirement
11annuity began on or before January 1, 1977, shall have the
12monthly retirement annuity increased by an amount equal to 8
13per year of creditable service times the number of years that
14have elapsed since the annuity began.
15(Source: P.A. 97-933, eff. 8-10-12; 97-968, eff. 8-16-12.)
 
16    (40 ILCS 5/15-145)  (from Ch. 108 1/2, par. 15-145)
17    Sec. 15-145. Survivors insurance benefits; conditions and
18amounts.
19    (a) The survivors insurance benefits provided under this
20Section shall be payable to the eligible survivors of a
21participant covered under the traditional benefit package upon
22the death of (1) a participating employee with at least 1 1/2
23years of service, (2) a participant who terminated employment
24with at least 10 years of service, and (3) an annuitant in
25receipt of a retirement annuity or disability retirement

 

 

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1annuity under this Article.
2    Service under the State Employees' Retirement System of
3Illinois, the Teachers' Retirement System of the State of
4Illinois and the Public School Teachers' Pension and Retirement
5Fund of Chicago shall be considered in determining eligibility
6for survivors benefits under this Section.
7    If by law, a function of a governmental unit, as defined by
8Section 20-107, is transferred in whole or in part to an
9employer, and an employee transfers employment from this
10governmental unit to such employer within 6 months after the
11transfer of this function, the service credits in the
12governmental unit's retirement system which have been
13validated under Section 20-109 shall be considered in
14determining eligibility for survivors benefits under this
15Section.
16    (b) A surviving spouse of a deceased participant, or of a
17deceased annuitant who did not take a refund or additional
18annuity consisting of accumulated survivors insurance
19contributions, shall receive a survivors annuity of 30% of the
20final rate of earnings. Payments shall begin on the day
21following the participant's or annuitant's death or the date
22the surviving spouse attains age 50, whichever is later, and
23continue until the death of the surviving spouse. The annuity
24shall be payable to the surviving spouse prior to attainment of
25age 50 if the surviving spouse has in his or her care a
26deceased participant's or annuitant's dependent unmarried

 

 

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1child under age 18 (under age 22 if a full-time student) who is
2eligible for a survivors annuity.
3    Remarriage of a surviving spouse prior to attainment of age
455 that occurs before the effective date of this amendatory Act
5of the 91st General Assembly shall disqualify him or her for
6the receipt of a survivors annuity until July 6, 2000.
7    A surviving spouse whose survivors annuity has been
8terminated due to remarriage may apply for reinstatement of
9that annuity. The reinstated annuity shall begin to accrue on
10July 6, 2000, except that if, on July 6, 2000, the annuity is
11payable to an eligible surviving child or parent, payment of
12the annuity to the surviving spouse shall not be reinstated
13until the annuity is no longer payable to any eligible
14surviving child or parent. The reinstated annuity shall include
15any one-time or annual increases received prior to the date of
16termination, as well as any increases that would otherwise have
17accrued from the date of termination to the date of
18reinstatement. An eligible surviving spouse whose expectation
19of receiving a survivors annuity was lost due to remarriage
20before attainment of age 50 shall also be entitled to
21reinstatement under this subsection, but the resulting
22survivors annuity shall not begin to accrue sooner than upon
23the surviving spouse's attainment of age 50.
24    The changes made to this subsection by this amendatory Act
25of the 92nd General Assembly (pertaining to remarriage prior to
26age 55 or 50) apply without regard to whether the deceased

 

 

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1participant or annuitant was in service on or after the
2effective date of this amendatory Act.
3    (c) Each dependent unmarried child under age 18 (under age
422 if a full-time student) of a deceased participant, or of a
5deceased annuitant who did not take a refund or additional
6annuity consisting of accumulated survivors insurance
7contributions, shall receive a survivors annuity equal to the
8sum of (1) 20% of the final rate of earnings, and (2) 10% of the
9final rate of earnings divided by the number of children
10entitled to this benefit. Payments shall begin on the day
11following the participant's or annuitant's death and continue
12until the child marries, dies, or attains age 18 (age 22 if a
13full-time student). If the child is in the care of a surviving
14spouse who is eligible for survivors insurance benefits, the
15child's benefit shall be paid to the surviving spouse.
16    Each unmarried child over age 18 of a deceased participant
17or of a deceased annuitant who had a survivor's insurance
18beneficiary at the time of his or her retirement, and who was
19dependent upon the participant or annuitant by reason of a
20physical or mental disability which began prior to the date the
21child attained age 18 (age 22 if a full-time student), shall
22receive a survivor's annuity equal to the sum of (1) 20% of the
23final rate of earnings, and (2) 10% of the final rate of
24earnings divided by the number of children entitled to
25survivors benefits. Payments shall begin on the day following
26the participant's or annuitant's death and continue until the

 

 

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1child marries, dies, or is no longer disabled. If the child is
2in the care of a surviving spouse who is eligible for survivors
3insurance benefits, the child's benefit may be paid to the
4surviving spouse. For the purposes of this Section, disability
5means inability to engage in any substantial gainful activity
6by reason of any medically determinable physical or mental
7impairment that can be expected to result in death or that has
8lasted or can be expected to last for a continuous period of at
9least one year.
10    (d) Each dependent parent of a deceased participant, or of
11a deceased annuitant who did not take a refund or additional
12annuity consisting of accumulated survivors insurance
13contributions, shall receive a survivors annuity equal to the
14sum of (1) 20% of final rate of earnings, and (2) 10% of final
15rate of earnings divided by the number of parents who qualify
16for the benefit. Payments shall begin when the parent reaches
17age 55 or the day following the participant's or annuitant's
18death, whichever is later, and continue until the parent dies.
19Remarriage of a parent prior to attainment of age 55 shall
20disqualify the parent for the receipt of a survivors annuity.
21    (e) In addition to the survivors annuity provided above,
22each survivors insurance beneficiary shall, upon death of the
23participant or annuitant, receive a lump sum payment of $1,000
24divided by the number of such beneficiaries.
25    (f) The changes made in this Section by Public Act 81-712
26pertaining to survivors annuities in cases of remarriage prior

 

 

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1to age 55 shall apply to each survivors insurance beneficiary
2who remarries after June 30, 1979, regardless of the date that
3the participant or annuitant terminated his employment or died.
4    The change made to this Section by this amendatory Act of
5the 91st General Assembly, pertaining to remarriage prior to
6age 55, applies without regard to whether the deceased
7participant or annuitant was in service on or after the
8effective date of this amendatory Act of the 91st General
9Assembly.
10    (g) On January 1, 1981, any person who was receiving a
11survivors annuity on or before January 1, 1971 shall have the
12survivors annuity then being paid increased by 1% for each full
13year which has elapsed from the date the annuity began. On
14January 1, 1982, any survivor whose annuity began after January
151, 1971, but before January 1, 1981, shall have the survivor's
16annuity then being paid increased by 1% for each year which has
17elapsed from the date the survivor's annuity began. On January
181, 1987, any survivor who began receiving a survivor's annuity
19on or before January 1, 1977, shall have the monthly survivor's
20annuity increased by $1 for each full year which has elapsed
21since the date the survivor's annuity began.
22    (h) If the sum of the lump sum and total monthly survivor
23benefits payable under this Section upon the death of a
24participant amounts to less than the sum of the death benefits
25payable under items (2) and (3) of Section 15-141, the
26difference shall be paid in a lump sum to the beneficiary of

 

 

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1the participant who is living on the date that this additional
2amount becomes payable.
3    (i) If the sum of the lump sum and total monthly survivor
4benefits payable under this Section upon the death of an
5annuitant receiving a retirement annuity or disability
6retirement annuity amounts to less than the death benefit
7payable under Section 15-142, the difference shall be paid to
8the beneficiary of the annuitant who is living on the date that
9this additional amount becomes payable.
10    (j) Except as provided in subsection (j-5):
11        (1) Effective on the later of (1) January 1, 1990, or
12    (2) the January 1 on or next after the date on which the
13    survivor annuity begins, if the deceased member died while
14    receiving a retirement annuity, or in all other cases the
15    January 1 nearest the first anniversary of the date the
16    survivor annuity payments begin, every survivors insurance
17    beneficiary shall receive an increase in his or her monthly
18    survivors annuity of 3%.
19        (2) On each January 1 after the initial increase, the
20    monthly survivors annuity shall be increased by 3% of the
21    total survivors annuity provided under this Article,
22    including previous increases provided by this subsection.
23        (3) Such increases shall apply to the survivors
24    insurance beneficiaries of each participant and annuitant,
25    whether or not the employment status of the participant or
26    annuitant terminates before the effective date of this

 

 

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1    amendatory Act of 1990.
2        (4) This subsection (j) and subsection (j-5) also apply
3    also applies to persons receiving a survivor annuity under
4    the portable benefit package.
5    (j-5) Notwithstanding any other provision of this Article,
6beginning on the effective date of this amendatory Act of the
798th General Assembly, each annual increase under this Section
8shall be calculated as 3% or one-half the annual unadjusted
9percentage increase in the Consumer Price Index-U for the 12
10months ending with the preceding September, whichever is less,
11of the originally granted annuity. If the annual unadjusted
12percentage change is zero or there is a decrease, then the
13annuity shall not be increased. For the purposes of this
14Section, "Consumer Price Index-U" means the index published by
15the Bureau of Labor Statistics of the United States Department
16of Labor that measures the average change in prices of goods
17and services purchased by all urban consumers, United States
18city average, all items, 1982-84 = 100. This subsection applies
19to the survivors insurance beneficiaries of all future,
20current, and former Tier 1 employees, including annuitants and
21persons not in service on or after the effective date of this
22amendatory Act of the 98th General Assembly.
23    (k) If the Internal Revenue Code of 1986, as amended,
24requires that the survivors benefits be payable at an age
25earlier than that specified in this Section the benefits shall
26begin at the earlier age, in which event, the survivor's

 

 

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1beneficiary shall be entitled only to that amount which is
2equal to the actuarial equivalent of the benefits provided by
3this Section.
4    (l) The changes made to this Section and Section 15-131 by
5this amendatory Act of 1997, relating to benefits for certain
6unmarried children who are full-time students under age 22,
7apply without regard to whether the deceased member was in
8service on or after the effective date of this amendatory Act
9of 1997. These changes do not authorize the repayment of a
10refund or a re-election of benefits, and any benefit or
11increase in benefits resulting from these changes is not
12payable retroactively for any period before the effective date
13of this amendatory Act of 1997.
14(Source: P.A. 91-887, eff. 7-6-00; 92-749, eff. 8-2-02.)
 
15    (40 ILCS 5/15-153.3)  (from Ch. 108 1/2, par. 15-153.3)
16    Sec. 15-153.3. Automatic increase in disability benefit.
17    (a) Each disability benefit payable under Section 15-150
18and calculated under Section 15-153 or 15-153.2 that has not
19yet received an initial increase under this Section shall be
20increased by 0.25% of the monthly disability benefit multiplied
21by the number of full months that have elapsed since the
22benefit began on January 1, 2002 or the January 1 next
23following the granting of the benefit, whichever occurs later.
24    Except as provided in subsection (b), on On each January 1
25following the initial increase under this Section, the

 

 

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1disability benefit shall be increased by 3% of the current
2amount of the benefit, including prior increases under this
3Article.
4    (b) Notwithstanding any other provision of this Article,
5beginning on the effective date of this amendatory Act of the
698th General Assembly, each annual increase after the initial
7increase under this Section shall be calculated as 3% or
8one-half the annual unadjusted percentage increase in the
9Consumer Price Index-U for the 12 months ending with the
10preceding September, whichever is less, of the originally
11granted annuity. If the annual unadjusted percentage change is
12zero or there is a decrease, then the annuity shall not be
13increased. For the purposes of this Section, "Consumer Price
14Index-U" means the index published by the Bureau of Labor
15Statistics of the United States Department of Labor that
16measures the average change in prices of goods and services
17purchased by all urban consumers, United States city average,
18all items, 1982-84 = 100. This subsection applies to all
19future, current, and former Tier 1 employees, including
20annuitants and persons not in service on or after the effective
21date of this amendatory Act of the 98th General Assembly.
22    (c) The changes made to this Section by Public Act 92-749
23this amendatory Act of the 92nd General Assembly apply without
24regard to whether the benefit recipient was in service on or
25after the effective date of that this amendatory Act.
26(Source: P.A. 92-749, eff. 8-2-02.)
 

 

 

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1    (40 ILCS 5/16-106.4 new)
2    Sec. 16-106.4. Tier 1 employee. "Tier 1 employee": A
3teacher who first became a member or participant before January
41, 2011 under any reciprocal retirement system or pension fund
5established under this Code other than a retirement system or
6pension fund established under Article 2, 3, 4, 5, 6, or 18 of
7this Code.
 
8    (40 ILCS 5/16-106.5 new)
9    Sec. 16-106.5. Tier 2 employee. "Tier 2 employee" means a
10teacher who is subject to Section 1-160 of this Code.
 
11    (40 ILCS 5/16-133.1)  (from Ch. 108 1/2, par. 16-133.1)
12    Sec. 16-133.1. Automatic annual increase in annuity.
13    (a) Except as provided in subsection (a-5):
14    Each member with creditable service and retiring on or
15after August 26, 1969 is entitled to the automatic annual
16increases in annuity provided under this Section while
17receiving a retirement annuity or disability retirement
18annuity from the system.
19    An annuitant shall first be entitled to an initial increase
20under this Section on the January 1 next following the first
21anniversary of retirement, or January 1 of the year next
22following attainment of age 61, whichever is later. At such
23time, the system shall pay an initial increase determined as

 

 

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1follows:
2        (1) 1.5% of the originally granted retirement annuity
3    or disability retirement annuity multiplied by the number
4    of years elapsed, if any, from the date of retirement until
5    January 1, 1972, plus
6        (2) 2% of the originally granted annuity multiplied by
7    the number of years elapsed, if any, from the date of
8    retirement or January 1, 1972, whichever is later, until
9    January 1, 1978, plus
10        (3) 3% of the originally granted annuity multiplied by
11    the number of years elapsed from the date of retirement or
12    January 1, 1978, whichever is later, until the effective
13    date of the initial increase.
14However, the initial annual increase calculated under this
15Section for the recipient of a disability retirement annuity
16granted under Section 16-149.2 shall be reduced by an amount
17equal to the total of all increases in that annuity received
18under Section 16-149.5 (but not exceeding 100% of the amount of
19the initial increase otherwise provided under this Section).
20    Following the initial increase, automatic annual increases
21in annuity shall be payable on each January 1 thereafter during
22the lifetime of the annuitant, determined as a percentage of
23the originally granted retirement annuity or disability
24retirement annuity for increases granted prior to January 1,
251990, and calculated as a percentage of the total amount of
26annuity, including previous increases under this Section, for

 

 

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1increases granted on or after January 1, 1990, as follows: 1.5%
2for periods prior to January 1, 1972, 2% for periods after
3December 31, 1971 and prior to January 1, 1978, and 3% for
4periods after December 31, 1977.
5    (a-5) Notwithstanding any other provision of this Article,
6beginning on the effective date of this amendatory Act of the
798th General Assembly, each annual increase under this Section
8shall be calculated as 3% or one-half the annual unadjusted
9percentage increase in the Consumer Price Index-U for the 12
10months ending with the preceding September, whichever is less,
11of the originally granted annuity. If the annual unadjusted
12percentage change is zero or there is a decrease, then the
13annuity shall not be increased. For the purposes of this
14Section, "Consumer Price Index-U" means the index published by
15the Bureau of Labor Statistics of the United States Department
16of Labor that measures the average change in prices of goods
17and services purchased by all urban consumers, United States
18city average, all items, 1982-84 = 100. This subsection applies
19to all future, current, and former Tier 1 employees subject to
20this Section, including annuitants and persons not in service
21on or after the effective date of this amendatory Act of the
2298th General Assembly.
23    (b) The automatic annual increases in annuity provided
24under this Section shall not be applicable unless a member has
25made contributions toward such increases for a period
26equivalent to one full year of creditable service. If a member

 

 

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1contributes for service performed after August 26, 1969 but the
2member becomes an annuitant before such contributions amount to
3one full year's contributions based on the salary at the date
4of retirement, he or she may pay the necessary balance of the
5contributions to the system and be eligible for the automatic
6annual increases in annuity provided under this Section.
7    (c) Each member shall make contributions toward the cost of
8the automatic annual increases in annuity as provided under
9Section 16-152.
10    (d) An annuitant receiving a retirement annuity or
11disability retirement annuity on July 1, 1969, who subsequently
12re-enters service as a teacher is eligible for the automatic
13annual increases in annuity provided under this Section if he
14or she renders at least one year of creditable service
15following the latest re-entry.
16    (e) In addition to the automatic annual increases in
17annuity provided under this Section, an annuitant who meets the
18service requirements of this Section and whose retirement
19annuity or disability retirement annuity began on or before
20January 1, 1971 shall receive, on January 1, 1981, an increase
21in the annuity then being paid of one dollar per month for each
22year of creditable service. On January 1, 1982, an annuitant
23whose retirement annuity or disability retirement annuity
24began on or before January 1, 1977 shall receive an increase in
25the annuity then being paid of one dollar per month for each
26year of creditable service.

 

 

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1    On January 1, 1987, any annuitant whose retirement annuity
2began on or before January 1, 1977, shall receive an increase
3in the monthly retirement annuity equal to 8 per year of
4creditable service times the number of years that have elapsed
5since the annuity began.
6(Source: P.A. 91-927, eff. 12-14-00.)
 
7    (40 ILCS 5/16-136.1)  (from Ch. 108 1/2, par. 16-136.1)
8    Sec. 16-136.1. Annual increase for certain annuitants.
9    (a) Except as provided in subsection (a-5):
10    Any annuitant receiving a retirement annuity on June 30,
111969 and any member retiring after June 30, 1969 shall be
12eligible for the annual increases provided under this Section
13provided the annuitant is ineligible for the automatic annual
14increase in annuity provided under Section 16-133.1, and
15provided further that (1) retirement occurred at age 55 or over
16and was based on 5 or more years of creditable service or (2)
17if retirement occurred prior to age 55, the retirement annuity
18was based on 20 or more years of creditable service.
19    (b) An annuitant entitled to increases under this Section
20shall be entitled to the initial increase as of the later of:
21(1) January 1 following attainment of age 65, (2) January 1
22following the first anniversary of retirement, or (3) the first
23day of the month following receipt of the required qualifying
24contribution from the annuitant. The initial monthly increase
25shall be computed on the basis of the period elapsed between

 

 

HB2725- 53 -LRB098 07543 EFG 37614 b

1the later of the date of last retirement or attainment of age
250 and the date of qualification for the initial increase, at
3the rate of 1 1/2% of the original monthly retirement annuity
4per year for periods prior to September 1, 1971, and at the
5rate of 2% per year for periods between September 1, 1971 and
6September 1, 1978, and at the rate of 3% per year for periods
7thereafter.
8    An annuitant who has received an initial increase under
9this Section, shall be entitled, on each January 1 following
10the granting of the initial increase, to an increase of 3% of
11the original monthly retirement annuity for increases granted
12prior to January 1, 1990, and equal to 3% of the total annuity,
13including previous increases under this Section, for increases
14granted on or after January 1, 1990. The original monthly
15retirement annuity for computations under this subsection (b)
16shall be considered to be $83.34 for any annuitant entitled to
17benefits under Section 16-134. The minimum original disability
18retirement annuity for computations under this subsection (b)
19shall be considered to be $33.34 per month for any annuitant
20retired on account of disability.
21    (a-5) Notwithstanding any other provision of this Article,
22beginning on the effective date of this amendatory Act of the
2398th General Assembly, each annual increase under this Section
24shall be calculated as 3% or one-half the annual unadjusted
25percentage increase in the Consumer Price Index-U for the 12
26months ending with the preceding September, whichever is less,

 

 

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1of the originally granted annuity. If the annual unadjusted
2percentage change is zero or there is a decrease, then the
3annuity shall not be increased. For the purposes of this
4Section, "Consumer Price Index-U" means the index published by
5the Bureau of Labor Statistics of the United States Department
6of Labor that measures the average change in prices of goods
7and services purchased by all urban consumers, United States
8city average, all items, 1982-84 = 100. This subsection applies
9to all future, current, and former Tier 1 employees subject to
10this Section, including annuitants and persons not in service
11on or after the effective date of this amendatory Act of the
1298th General Assembly.
13    (c) An annuitant who otherwise qualifies for annual
14increases under this Section must make a one-time payment of 1%
15of the monthly final average salary for each full year of the
16creditable service forming the basis of the retirement annuity
17or, if the retirement annuity was not computed using final
18average salary, 1% of the original monthly retirement annuity
19for each full year of service forming the basis of the
20retirement annuity.
21    (d) In addition to other increases which may be provided by
22this Section, regardless of creditable service, annuitants not
23meeting the service requirements of Section 16-133.1 and whose
24retirement annuity began on or before January 1, 1971 shall
25receive, on January 1, 1981, an increase in the retirement
26annuity then being paid of one dollar per month for each year

 

 

HB2725- 55 -LRB098 07543 EFG 37614 b

1of creditable service forming the basis of the retirement
2allowance. On January 1, 1982, annuitants whose retirement
3annuity began on or before January 1, 1977, shall receive an
4increase in the retirement annuity then being paid of one
5dollar per month for each year of creditable service.
6    On January 1, 1987, any annuitant whose retirement annuity
7began on or before January 1, 1977, shall receive an increase
8in the monthly retirement annuity equal to 8 per year of
9creditable service times the number of years that have elapsed
10since the annuity began.
11(Source: P.A. 86-273.)
 
12    (40 ILCS 5/16-143.1)  (from Ch. 108 1/2, par. 16-143.1)
13    Sec. 16-143.1. Increase in survivor benefits.
14    (a) Except as provided in subsection (a-5), beginning
15Beginning January 1, 1990, each survivor's benefit and each
16reversionary annuity payable under Section 16-136 shall be
17increased by 3% of the currently payable amount thereof (1) on
18each January 1 occurring on or after the commencement of the
19annuity if the deceased teacher died while receiving a
20retirement or disability retirement annuity, or (2) in other
21cases, on each January 1 occurring on or after the first
22anniversary of the granting of the benefit, without regard to
23whether the deceased teacher was in service on or after the
24effective date of this amendatory Act of 1991, but such
25increases shall not accrue for any period prior to January 1,

 

 

HB2725- 56 -LRB098 07543 EFG 37614 b

11990.
2    (a-5) Notwithstanding any other provision of this Article,
3beginning on the effective date of this amendatory Act of the
498th General Assembly, each annual increase under this Section
5shall be calculated as 3% or one-half the annual unadjusted
6percentage increase in the Consumer Price Index-U for the 12
7months ending with the preceding September, whichever is less,
8of the originally granted annuity. If the annual unadjusted
9percentage change is zero or there is a decrease, then the
10annuity shall not be increased. For the purposes of this
11Section, "Consumer Price Index-U" means the index published by
12the Bureau of Labor Statistics of the United States Department
13of Labor that measures the average change in prices of goods
14and services purchased by all urban consumers, United States
15city average, all items, 1982-84 = 100. This subsection applies
16to survivors of all future, current, and former Tier 1
17employees, including survivors of annuitants and persons not in
18service on or after the effective date of this amendatory Act
19of the 98th General Assembly.
20    (b) On January 1, 1981, any beneficiary who was receiving a
21survivor's monthly benefit on or before January 1, 1971, shall
22have the benefit then being paid increased by 1% for each full
23year elapsed from the date the survivor's benefit began. On
24January 1, 1982, any beneficiary who began receiving a
25survivor's monthly benefit after January 1, 1971, but before
26January 1, 1981 shall have the benefit then being paid

 

 

HB2725- 57 -LRB098 07543 EFG 37614 b

1increased by 1% for each year elapsed from the date the
2survivor's benefit began.
3    On January 1, 1987, any beneficiary whose monthly
4survivor's benefit began on or before January 1, 1977, shall
5have the monthly survivor's benefit increased by $1 for each
6full year which has elapsed since the date the survivor's
7benefit began.
8(Source: P.A. 86-273; 86-1488.)
 
9    (40 ILCS 5/16-149.5)  (from Ch. 108 1/2, par. 16-149.5)
10    Sec. 16-149.5. Automatic increase in disability benefit.
11    (a) Each disability benefit payable under Section 16-149,
1216-149.1 or 16-149.2 shall be increased by 7% of the original
13fixed amount of such benefit on January 1, 1991 or January 1
14following the fourth anniversary of the granting of the
15benefit, whichever occurs later. Except as provided in
16subsection (b), on On each January 1 following the 7% increase,
17the disability benefit shall be increased by 3% of the current
18amount of the benefit, including prior increases under this
19Article. However, in the case of a disability retirement
20annuity granted under Section 16-149.2, the annual increases
21provided by this Section shall cease as soon as the recipient
22of the annuity qualifies for the automatic annual increases
23provided under Section 16-133.1.
24    (b) Notwithstanding any other provision of this Article,
25beginning on the effective date of this amendatory Act of the

 

 

HB2725- 58 -LRB098 07543 EFG 37614 b

198th General Assembly, each annual increase after the first
2increase under this Section shall be calculated as 3% or
3one-half the annual unadjusted percentage increase in the
4Consumer Price Index-U for the 12 months ending with the
5preceding September, whichever is less, of the originally
6granted annuity. If the annual unadjusted percentage change is
7zero or there is a decrease, then the annuity shall not be
8increased. For the purposes of this Section, "Consumer Price
9Index-U" means the index published by the Bureau of Labor
10Statistics of the United States Department of Labor that
11measures the average change in prices of goods and services
12purchased by all urban consumers, United States city average,
13all items, 1982-84 = 100. This subsection applies to all
14future, current, and former Tier 1 employees, including
15annuitants and persons not in service on or after the effective
16date of this amendatory Act of the 98th General Assembly.
17(Source: P.A. 86-1488.)
 
18    (40 ILCS 5/18-110.1 new)
19    Sec. 18-110.1. Tier 1 participant. "Tier 1 participant"
20means a participant who first became a participant of this
21System before January 1, 2011 (the effective date of Public Act
2296-889).
 
23    (40 ILCS 5/18-110.2 new)
24    Sec. 18-110.2. Tier 2 participant. "Tier 2 participant"

 

 

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1means a participant who first becomes a participant of this
2System on or after January 1, 2011 (the effective date of
3Public Act 96-889).
 
4    (40 ILCS 5/18-125.1)  (from Ch. 108 1/2, par. 18-125.1)
5    Sec. 18-125.1. Automatic increase in retirement annuity.
6    (a) Except as otherwise provided in this Section, a Tier 1
7A participant who retires from service after June 30, 1969,
8shall, in January of the year next following the year in which
9the first anniversary of retirement occurs, and in January of
10each year thereafter, have the amount of his or her originally
11granted retirement annuity increased as follows: for each year
12up to and including 1971, 1 1/2%; for each year from 1972
13through 1979 inclusive, 2%; and for 1980 and each year
14thereafter, 3%.
15    (b) Except as otherwise provided in this Section, a
16Notwithstanding any other provision of this Article, a
17retirement annuity for a Tier 2 participant who first serves as
18a judge on or after January 1, 2011 (the effective date of
19Public Act 96-889) shall be increased in January of the year
20next following the year in which the first anniversary of
21retirement occurs, but in no event prior to age 67, and in
22January of each year thereafter, by an amount equal to 3% or
23the annual percentage increase in the consumer price index-u as
24determined by the Public Pension Division of the Department of
25Insurance under subsection (b-5) of Section 18-125, whichever

 

 

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1is less, of the retirement annuity then being paid.
2    (c) This Section is not applicable to a participant who
3retires before he or she has made contributions at the rate
4prescribed in Section 18-133 for automatic increases for not
5less than the equivalent of one full year, unless such a
6participant arranges to pay the system the amount required to
7bring the total contributions for the automatic increase to the
8equivalent of one year's contribution based upon his or her
9last year's salary.
10    (d) This Section is applicable to all participants in
11service after June 30, 1969 unless a participant has elected,
12prior to September 1, 1969, in a written direction filed with
13the board not to be subject to the provisions of this Section.
14Any participant in service on or after July 1, 1992 shall have
15the option of electing prior to April 1, 1993, in a written
16direction filed with the board, to be covered by the provisions
17of the 1969 amendatory Act. Such participant shall be required
18to make the aforesaid additional contributions with compound
19interest at 4% per annum.
20    (e) Any participant who has become eligible to receive the
21maximum rate of annuity and who resumes service as a judge
22after receiving a retirement annuity under this Article shall
23have the amount of his or her retirement annuity increased by
243% of the originally granted annuity amount until the effective
25date of this amendatory Act of the 98th General Assembly, and
26beginning on that date by the amount provided under subsection

 

 

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1(g), for each year of such resumed service, beginning in
2January of the year next following the date of such resumed
3service, upon subsequent termination of such resumed service.
4    (f) Beginning January 1, 1990 and until the effective date
5of this amendatory Act of the 98th General Assembly,, all
6automatic annual increases payable under subsection (a) or (e)
7of this Section shall be calculated as a percentage of the
8total annuity payable at the time of the increase, including
9previous increases granted under this Article.
10    (g) Notwithstanding any other provision of this Article,
11beginning on the effective date of this amendatory Act of the
1298th General Assembly, each annual increase under this Section
13shall be calculated as 3% or one-half the annual unadjusted
14percentage increase in the Consumer Price Index-U for the 12
15months ending with the preceding September, whichever is less,
16of the originally granted annuity. If the annual unadjusted
17percentage change is zero or there is a decrease, then the
18annuity shall not be increased. For the purposes of this
19Section, "Consumer Price Index-U" means the index published by
20the Bureau of Labor Statistics of the United States Department
21of Labor that measures the average change in prices of goods
22and services purchased by all urban consumers, United States
23city average, all items, 1982-84 = 100. This subsection applies
24to all future, current, and former Tier 1 and Tier 2
25participants, including annuitants and persons not in service
26on or after the effective date of this amendatory Act of the

 

 

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198th General Assembly.
2(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
3    (40 ILCS 5/18-128.01)  (from Ch. 108 1/2, par. 18-128.01)
4    Sec. 18-128.01. Amount of survivor's annuity.
5    (a) Upon the death of an annuitant, his or her surviving
6spouse shall be entitled to a survivor's annuity of 66 2/3% of
7the annuity the annuitant was receiving immediately prior to
8his or her death, inclusive of annual increases in the
9retirement annuity to the date of death.
10    (b) Upon the death of an active participant, his or her
11surviving spouse shall receive a survivor's annuity of 66 2/3%
12of the annuity earned by the participant as of the date of his
13or her death, determined without regard to whether the
14participant had attained age 60 as of that time, or 7 1/2% of
15the last salary of the decedent, whichever is greater.
16    (c) Upon the death of a participant who had terminated
17service with at least 10 years of service, his or her surviving
18spouse shall be entitled to a survivor's annuity of 66 2/3% of
19the annuity earned by the deceased participant at the date of
20death.
21    (d) Upon the death of an annuitant, active participant, or
22participant who had terminated service with at least 10 years
23of service, each surviving child under the age of 18 or
24disabled as defined in Section 18-128 shall be entitled to a
25child's annuity in an amount equal to 5% of the decedent's

 

 

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1final salary, not to exceed in total for all such children the
2greater of 20% of the decedent's last salary or 66 2/3% of the
3annuity received or earned by the decedent as provided under
4subsections (a) and (b) of this Section. This child's annuity
5shall be paid whether or not a survivor's annuity was elected
6under Section 18-123.
7    (e) The changes made in the survivor's annuity provisions
8by Public Act 82-306 shall apply to the survivors of a deceased
9participant or annuitant whose death occurs on or after August
1021, 1981.
11    (f) Except as otherwise provided in this Section, beginning
12Beginning January 1, 1990, every survivor's annuity for a
13survivor of a Tier 1 participant shall be increased (1) on each
14January 1 occurring on or after the commencement of the annuity
15if the deceased member died while receiving a retirement
16annuity, or (2) in other cases, on each January 1 occurring on
17or after the first anniversary of the commencement of the
18annuity, by an amount equal to 3% of the current amount of the
19annuity, including any previous increases under this Article.
20Such increases shall apply without regard to whether the
21deceased member was in service on or after the effective date
22of this amendatory Act of 1991, but shall not accrue for any
23period prior to January 1, 1990.
24    (g) Subject to subsection (h), but notwithstanding
25Notwithstanding any other provision of this Article, the
26initial survivor's annuity for a survivor of a Tier 2

 

 

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1participant who first serves as a judge after January 1, 2011
2(the effective date of Public Act 96-889) shall be in the
3amount of 66 2/3% of the annuity received or earned by the
4decedent, and shall be increased (1) on each January 1
5occurring on or after the commencement of the annuity if the
6deceased participant died while receiving a retirement
7annuity, or (2) in other cases, on each January 1 occurring on
8or after the first anniversary of the commencement of the
9annuity, but in no event prior to age 67, by an amount equal to
103% or the annual unadjusted percentage increase in the consumer
11price index-u as determined by the Public Pension Division of
12the Department of Insurance under subsection (b-5) of Section
1318-125, whichever is less, of the survivor's annuity then being
14paid.
15    (h) Notwithstanding any other provision of this Article,
16beginning on the effective date of this amendatory Act of the
1798th General Assembly, each annual increase under this Section
18shall be calculated as 3% or one-half the annual unadjusted
19percentage increase in the Consumer Price Index-U for the 12
20months ending with the preceding September, whichever is less,
21of the originally granted annuity. If the annual unadjusted
22percentage change is zero or there is a decrease, then the
23annuity shall not be increased. For the purposes of this
24Section, "Consumer Price Index-U" means the index published by
25the Bureau of Labor Statistics of the United States Department
26of Labor that measures the average change in prices of goods

 

 

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1and services purchased by all urban consumers, United States
2city average, all items, 1982-84 = 100. This subsection applies
3to survivors of all future, current, and former Tier 1 and Tier
42 participants, including annuitants and persons not in service
5on or after the effective date of this amendatory Act of the
698th General Assembly.
7(Source: P.A. 96-889, eff. 1-1-11; 96-1490, eff. 1-1-11.)
 
8    Section 99. Effective date. This Act takes effect upon
9becoming law.

 

 

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1 INDEX
2 Statutes amended in order of appearance
3    40 ILCS 5/2-107.1 new
4    40 ILCS 5/2-107.2 new
5    40 ILCS 5/2-119.1from Ch. 108 1/2, par. 2-119.1
6    40 ILCS 5/2-121.1from Ch. 108 1/2, par. 2-121.1
7    40 ILCS 5/14-103.40 new
8    40 ILCS 5/14-103.41 new
9    40 ILCS 5/14-114from Ch. 108 1/2, par. 14-114
10    40 ILCS 5/14-119from Ch. 108 1/2, par. 14-119
11    40 ILCS 5/14-121from Ch. 108 1/2, par. 14-121
12    40 ILCS 5/14-125.1from Ch. 108 1/2, par. 14-125.1
13    40 ILCS 5/15-107.1 new
14    40 ILCS 5/15-107.2 new
15    40 ILCS 5/15-136from Ch. 108 1/2, par. 15-136
16    40 ILCS 5/15-145from Ch. 108 1/2, par. 15-145
17    40 ILCS 5/15-153.3from Ch. 108 1/2, par. 15-153.3
18    40 ILCS 5/16-106.4 new
19    40 ILCS 5/16-106.5 new
20    40 ILCS 5/16-133.1from Ch. 108 1/2, par. 16-133.1
21    40 ILCS 5/16-136.1from Ch. 108 1/2, par. 16-136.1
22    40 ILCS 5/16-143.1from Ch. 108 1/2, par. 16-143.1
23    40 ILCS 5/16-149.5from Ch. 108 1/2, par. 16-149.5
24    40 ILCS 5/18-110.1 new
25    40 ILCS 5/18-110.2 new

 

 

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1    40 ILCS 5/18-125.1from Ch. 108 1/2, par. 18-125.1
2    40 ILCS 5/18-128.01from Ch. 108 1/2, par. 18-128.01