Illinois General Assembly - Full Text of SB0053
Illinois General Assembly

  Bills & Resolutions  
  Compiled Statutes  
  Public Acts  
  Legislative Reports  
  IL Constitution  
  Legislative Guide  
  Legislative Glossary  

 Search By Number
 (example: HB0001)
Search Tips

Search By Keyword

Full Text of SB0053  102nd General Assembly

SB0053 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB0053

 

Introduced 1/29/2021, by Sen. Robert F. Martwick

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the General Provisions and Illinois Municipal Retirement Fund (IMRF) Articles of the Illinois Pension Code. Except for persons who elected to establish certain alternative credits, moves provisions concerning Tier 2 members of IMRF from the General Provisions Article to the IMRF Article. Defines Tier 1 regular employee and Tier 2 regular employee. Provides that the increase to the retirement annuity of a Tier 1 regular employee shall be computed from the effective date of the retirement annuity, the first increase being 0.25% (instead of .167%) of the monthly amount times the number of months from the effective date to January 1. Provides that if the employee was a Tier 1 regular employee, the surviving spouse annuity shall be increased by an amount equal to (i) 3% of the original amount thereof if the deceased employee was receiving a retirement annuity at the time of his or her death; otherwise (ii) 0.25% (instead of 0.167%) of the original amount thereof for each complete month that has elapsed since the date the annuity began. In provisions giving the Board of Trustees of the Fund the power and duty to have the accounts of the fund audited annually by a certified public accountant, removes language requiring that the certified public accountant be approved by the Auditor General. Makes other changes. Amends the State Mandates Act to require implementation without reimbursement.


LRB102 09993 RPS 15311 b

FISCAL NOTE ACT MAY APPLY
PENSION IMPACT NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

SB0053LRB102 09993 RPS 15311 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
5changing Sections 1-160, 7-114, 7-116, 7-141, 7-141.1, 7-142,
67-144, 7-156, and 7-191 and by adding Sections 7-109.4 and
77-109.5 as follows:
 
8    (40 ILCS 5/1-160)
9    Sec. 1-160. Provisions applicable to new hires.
10    (a) The provisions of this Section apply to a person who,
11on or after January 1, 2011, first becomes a member or a
12participant under any reciprocal retirement system or pension
13fund established under this Code, other than a retirement
14system or pension fund established under Article 2, 3, 4, 5, 6,
157, 15, or 18 of this Code, notwithstanding any other provision
16of this Code to the contrary, but do not apply to any
17self-managed plan established under this Code, to any person
18with respect to service as a sheriff's law enforcement
19employee under Article 7, or to any participant of the
20retirement plan established under Section 22-101; except that
21this Section applies to a person who elected to establish
22alternative credits by electing in writing after January 1,
232011, but before August 8, 2011, under Section 7-145.1 of this

 

 

SB0053- 2 -LRB102 09993 RPS 15311 b

1Code. Notwithstanding anything to the contrary in this
2Section, for purposes of this Section, a person who is a Tier 1
3regular employee as defined in Section 7-109.4 of this Code or
4who participated in a retirement system under Article 15 prior
5to January 1, 2011 shall be deemed a person who first became a
6member or participant prior to January 1, 2011 under any
7retirement system or pension fund subject to this Section. The
8changes made to this Section by Public Act 98-596 are a
9clarification of existing law and are intended to be
10retroactive to January 1, 2011 (the effective date of Public
11Act 96-889), notwithstanding the provisions of Section 1-103.1
12of this Code.
13    This Section does not apply to a person who first becomes a
14noncovered employee under Article 14 on or after the
15implementation date of the plan created under Section 1-161
16for that Article, unless that person elects under subsection
17(b) of Section 1-161 to instead receive the benefits provided
18under this Section and the applicable provisions of that
19Article.
20    This Section does not apply to a person who first becomes a
21member or participant under Article 16 on or after the
22implementation date of the plan created under Section 1-161
23for that Article, unless that person elects under subsection
24(b) of Section 1-161 to instead receive the benefits provided
25under this Section and the applicable provisions of that
26Article.

 

 

SB0053- 3 -LRB102 09993 RPS 15311 b

1    This Section does not apply to a person who elects under
2subsection (c-5) of Section 1-161 to receive the benefits
3under Section 1-161.
4    This Section does not apply to a person who first becomes a
5member or participant of an affected pension fund on or after 6
6months after the resolution or ordinance date, as defined in
7Section 1-162, unless that person elects under subsection (c)
8of Section 1-162 to receive the benefits provided under this
9Section and the applicable provisions of the Article under
10which he or she is a member or participant.
11    (b) "Final average salary" means the average monthly (or
12annual) salary obtained by dividing the total salary or
13earnings calculated under the Article applicable to the member
14or participant during the 96 consecutive months (or 8
15consecutive years) of service within the last 120 months (or
1610 years) of service in which the total salary or earnings
17calculated under the applicable Article was the highest by the
18number of months (or years) of service in that period. For the
19purposes of a person who first becomes a member or participant
20of any retirement system or pension fund to which this Section
21applies on or after January 1, 2011, in this Code, "final
22average salary" shall be substituted for the following:
23        (1) (Blank). In Article 7 (except for service as
24    sheriff's law enforcement employees), "final rate of
25    earnings".
26        (2) In Articles 8, 9, 10, 11, and 12, "highest average

 

 

SB0053- 4 -LRB102 09993 RPS 15311 b

1    annual salary for any 4 consecutive years within the last
2    10 years of service immediately preceding the date of
3    withdrawal".
4        (3) In Article 13, "average final salary".
5        (4) In Article 14, "final average compensation".
6        (5) In Article 17, "average salary".
7        (6) In Section 22-207, "wages or salary received by
8    him at the date of retirement or discharge".
9    (b-5) Beginning on January 1, 2011, for all purposes under
10this Code (including without limitation the calculation of
11benefits and employee contributions), the annual earnings,
12salary, or wages (based on the plan year) of a member or
13participant to whom this Section applies shall not exceed
14$106,800; however, that amount shall annually thereafter be
15increased by the lesser of (i) 3% of that amount, including all
16previous adjustments, or (ii) one-half the annual unadjusted
17percentage increase (but not less than zero) in the consumer
18price index-u for the 12 months ending with the September
19preceding each November 1, including all previous adjustments.
20    For the purposes of this Section, "consumer price index-u"
21means the index published by the Bureau of Labor Statistics of
22the United States Department of Labor that measures the
23average change in prices of goods and services purchased by
24all urban consumers, United States city average, all items,
251982-84 = 100. The new amount resulting from each annual
26adjustment shall be determined by the Public Pension Division

 

 

SB0053- 5 -LRB102 09993 RPS 15311 b

1of the Department of Insurance and made available to the
2boards of the retirement systems and pension funds by November
31 of each year.
4    (c) A member or participant is entitled to a retirement
5annuity upon written application if he or she has attained age
667 (beginning January 1, 2015, age 65 with respect to service
7under Article 12 of this Code that is subject to this Section)
8and has at least 10 years of service credit and is otherwise
9eligible under the requirements of the applicable Article.
10    A member or participant who has attained age 62 (beginning
11January 1, 2015, age 60 with respect to service under Article
1212 of this Code that is subject to this Section) and has at
13least 10 years of service credit and is otherwise eligible
14under the requirements of the applicable Article may elect to
15receive the lower retirement annuity provided in subsection
16(d) of this Section.
17    (c-5) A person who first becomes a member or a participant
18subject to this Section on or after July 6, 2017 (the effective
19date of Public Act 100-23), notwithstanding any other
20provision of this Code to the contrary, is entitled to a
21retirement annuity under Article 8 or Article 11 upon written
22application if he or she has attained age 65 and has at least
2310 years of service credit and is otherwise eligible under the
24requirements of Article 8 or Article 11 of this Code,
25whichever is applicable.
26    (d) The retirement annuity of a member or participant who

 

 

SB0053- 6 -LRB102 09993 RPS 15311 b

1is retiring after attaining age 62 (beginning January 1, 2015,
2age 60 with respect to service under Article 12 of this Code
3that is subject to this Section) with at least 10 years of
4service credit shall be reduced by one-half of 1% for each full
5month that the member's age is under age 67 (beginning January
61, 2015, age 65 with respect to service under Article 12 of
7this Code that is subject to this Section).
8    (d-5) The retirement annuity payable under Article 8 or
9Article 11 to an eligible person subject to subsection (c-5)
10of this Section who is retiring at age 60 with at least 10
11years of service credit shall be reduced by one-half of 1% for
12each full month that the member's age is under age 65.
13    (d-10) Each person who first became a member or
14participant under Article 8 or Article 11 of this Code on or
15after January 1, 2011 and prior to the effective date of this
16amendatory Act of the 100th General Assembly shall make an
17irrevocable election either:
18        (i) to be eligible for the reduced retirement age
19    provided in subsections (c-5) and (d-5) of this Section,
20    the eligibility for which is conditioned upon the member
21    or participant agreeing to the increases in employee
22    contributions for age and service annuities provided in
23    subsection (a-5) of Section 8-174 of this Code (for
24    service under Article 8) or subsection (a-5) of Section
25    11-170 of this Code (for service under Article 11); or
26        (ii) to not agree to item (i) of this subsection

 

 

SB0053- 7 -LRB102 09993 RPS 15311 b

1    (d-10), in which case the member or participant shall
2    continue to be subject to the retirement age provisions in
3    subsections (c) and (d) of this Section and the employee
4    contributions for age and service annuity as provided in
5    subsection (a) of Section 8-174 of this Code (for service
6    under Article 8) or subsection (a) of Section 11-170 of
7    this Code (for service under Article 11).
8    The election provided for in this subsection shall be made
9between October 1, 2017 and November 15, 2017. A person
10subject to this subsection who makes the required election
11shall remain bound by that election. A person subject to this
12subsection who fails for any reason to make the required
13election within the time specified in this subsection shall be
14deemed to have made the election under item (ii).
15    (e) Any retirement annuity or supplemental annuity shall
16be subject to annual increases on the January 1 occurring
17either on or after the attainment of age 67 (beginning January
181, 2015, age 65 with respect to service under Article 12 of
19this Code that is subject to this Section and beginning on the
20effective date of this amendatory Act of the 100th General
21Assembly, age 65 with respect to service under Article 8 or
22Article 11 for eligible persons who: (i) are subject to
23subsection (c-5) of this Section; or (ii) made the election
24under item (i) of subsection (d-10) of this Section) or the
25first anniversary of the annuity start date, whichever is
26later. Each annual increase shall be calculated at 3% or

 

 

SB0053- 8 -LRB102 09993 RPS 15311 b

1one-half the annual unadjusted percentage increase (but not
2less than zero) in the consumer price index-u for the 12 months
3ending with the September preceding each November 1, whichever
4is less, of the originally granted retirement annuity. If the
5annual unadjusted percentage change in the consumer price
6index-u for the 12 months ending with the September preceding
7each November 1 is zero or there is a decrease, then the
8annuity shall not be increased.
9    For the purposes of Section 1-103.1 of this Code, the
10changes made to this Section by this amendatory Act of the
11100th General Assembly are applicable without regard to
12whether the employee was in active service on or after the
13effective date of this amendatory Act of the 100th General
14Assembly.
15    (f) The initial survivor's or widow's annuity of an
16otherwise eligible survivor or widow of a retired member or
17participant who first became a member or participant on or
18after January 1, 2011 shall be in the amount of 66 2/3% of the
19retired member's or participant's retirement annuity at the
20date of death. In the case of the death of a member or
21participant who has not retired and who first became a member
22or participant on or after January 1, 2011, eligibility for a
23survivor's or widow's annuity shall be determined by the
24applicable Article of this Code. The initial benefit shall be
2566 2/3% of the earned annuity without a reduction due to age. A
26child's annuity of an otherwise eligible child shall be in the

 

 

SB0053- 9 -LRB102 09993 RPS 15311 b

1amount prescribed under each Article if applicable. Any
2survivor's or widow's annuity shall be increased (1) on each
3January 1 occurring on or after the commencement of the
4annuity if the deceased member died while receiving a
5retirement annuity or (2) in other cases, on each January 1
6occurring after the first anniversary of the commencement of
7the annuity. Each annual increase shall be calculated at 3% or
8one-half the annual unadjusted percentage increase (but not
9less than zero) in the consumer price index-u for the 12 months
10ending with the September preceding each November 1, whichever
11is less, of the originally granted survivor's annuity. If the
12annual unadjusted percentage change in the consumer price
13index-u for the 12 months ending with the September preceding
14each November 1 is zero or there is a decrease, then the
15annuity shall not be increased.
16    (g) The benefits in Section 14-110 apply only if the
17person is a State policeman, a fire fighter in the fire
18protection service of a department, a conservation police
19officer, an investigator for the Secretary of State, an arson
20investigator, a Commerce Commission police officer,
21investigator for the Department of Revenue or the Illinois
22Gaming Board, a security employee of the Department of
23Corrections or the Department of Juvenile Justice, or a
24security employee of the Department of Innovation and
25Technology, as those terms are defined in subsection (b) and
26subsection (c) of Section 14-110. A person who meets the

 

 

SB0053- 10 -LRB102 09993 RPS 15311 b

1requirements of this Section is entitled to an annuity
2calculated under the provisions of Section 14-110, in lieu of
3the regular or minimum retirement annuity, only if the person
4has withdrawn from service with not less than 20 years of
5eligible creditable service and has attained age 60,
6regardless of whether the attainment of age 60 occurs while
7the person is still in service.
8    (h) If a person who first becomes a member or a participant
9of a retirement system or pension fund subject to this Section
10on or after January 1, 2011 is receiving a retirement annuity
11or retirement pension under that system or fund and becomes a
12member or participant under any other system or fund created
13by this Code and is employed on a full-time basis, except for
14those members or participants exempted from the provisions of
15this Section under subsection (a) of this Section, then the
16person's retirement annuity or retirement pension under that
17system or fund shall be suspended during that employment. Upon
18termination of that employment, the person's retirement
19annuity or retirement pension payments shall resume and be
20recalculated if recalculation is provided for under the
21applicable Article of this Code.
22    If a person who first becomes a member of a retirement
23system or pension fund subject to this Section on or after
24January 1, 2012 and is receiving a retirement annuity or
25retirement pension under that system or fund and accepts on a
26contractual basis a position to provide services to a

 

 

SB0053- 11 -LRB102 09993 RPS 15311 b

1governmental entity from which he or she has retired, then
2that person's annuity or retirement pension earned as an
3active employee of the employer shall be suspended during that
4contractual service. A person receiving an annuity or
5retirement pension under this Code shall notify the pension
6fund or retirement system from which he or she is receiving an
7annuity or retirement pension, as well as his or her
8contractual employer, of his or her retirement status before
9accepting contractual employment. A person who fails to submit
10such notification shall be guilty of a Class A misdemeanor and
11required to pay a fine of $1,000. Upon termination of that
12contractual employment, the person's retirement annuity or
13retirement pension payments shall resume and, if appropriate,
14be recalculated under the applicable provisions of this Code.
15    (i) (Blank).
16    (j) In the case of a conflict between the provisions of
17this Section and any other provision of this Code, the
18provisions of this Section shall control.
19(Source: P.A. 100-23, eff. 7-6-17; 100-201, eff. 8-18-17;
20100-563, eff. 12-8-17; 100-611, eff. 7-20-18; 100-1166, eff.
211-4-19; 101-610, eff. 1-1-20.)
 
22    (40 ILCS 5/7-109.4 new)
23    Sec. 7-109.4. Tier 1 regular employee. "Tier 1 regular
24employee" means a participant or an annuitant under this
25Article who first became a participant or member before

 

 

SB0053- 12 -LRB102 09993 RPS 15311 b

1January 1, 2011 under any retirement system or pension fund
2under this Code, other than a retirement system or pension
3fund established under Articles 2, 3, 4, 5, 6, or 18 or in any
4self-managed plan established under this Code, or the
5retirement plan established under Section 22-101.
6    "Tier 1 regular employee" includes a person who received a
7separation benefit but is otherwise qualified under this
8Section and subsequently becomes a participating employee on
9or after January 1, 2011.
10    "Tier 1 regular employee" includes a former participating
11employee who received a separation benefit under Section 7-167
12for service earned prior to January 1, 2011 who returns to a
13qualifying position after January 1, 2011.
14    "Tier 1 regular employee" includes a participating
15employee who has omitted service as defined in Section 7-111.5
16that includes any period prior to January 1, 2011 only if he or
17she establishes sufficient service credit under item (12) of
18subsection (a) of Section 7-139 to include service prior to
19January 1, 2011.
20    Notwithstanding anything contrary in this Section, "Tier 1
21regular employee" does not include a participant or annuitant
22who is eligible to have his or her annuity calculated under
23Section 7-142.1 or a person who elected to establish
24alternative credits under Section 7-145.1.
 
25    (40 ILCS 5/7-109.5 new)

 

 

SB0053- 13 -LRB102 09993 RPS 15311 b

1    Sec. 7-109.5. Tier 2 regular employee. "Tier 2 regular
2employee" means a person who first becomes a participant under
3this Article on or after January 1, 2011 and is not a Tier 1
4regular employee.
5    Notwithstanding anything contrary in this Section, "Tier 2
6regular employee" does not include a participant or annuitant
7who is eligible to have his or her annuity calculated under
8Section 7-142.1 or a person who elected to establish
9alternative credits by electing in writing after January 1,
102011, but before August 8, 2011, under Section 7-145.1 of this
11Code.
 
12    (40 ILCS 5/7-114)  (from Ch. 108 1/2, par. 7-114)
13    Sec. 7-114. Earnings. "Earnings":
14    (a) An amount to be determined by the board, equal to the
15sum of:
16        1. The total amount of money paid to an employee for
17    personal services or official duties as an employee
18    (except those employed as independent contractors) paid
19    out of the general fund, or out of any special funds
20    controlled by the municipality, or by any instrumentality
21    thereof, or participating instrumentality, including
22    compensation, fees, allowances (but not including amounts
23    associated with a vehicle allowance payable to an employee
24    who first becomes a participating employee on or after the
25    effective date of this amendatory Act of the 100th General

 

 

SB0053- 14 -LRB102 09993 RPS 15311 b

1    Assembly), or other emolument paid for official duties
2    (but not including automobile maintenance, travel expense,
3    or reimbursements for expenditures incurred in the
4    performance of duties) and, for fee offices, the fees or
5    earnings of the offices to the extent such fees are paid
6    out of funds controlled by the municipality, or
7    instrumentality or participating instrumentality; and
8        2. The money value, as determined by rules prescribed
9    by the governing body of the municipality, or
10    instrumentality thereof, of any board, lodging, fuel,
11    laundry, and other allowances provided an employee in lieu
12    of money.
13    (b) For purposes of determining benefits payable under
14this fund payments to a person who is engaged in an
15independently established trade, occupation, profession or
16business and who is paid for his service on a basis other than
17a monthly or other regular salary, are not earnings.
18    (c) If a disabled participating employee is eligible to
19receive Workers' Compensation for an accidental injury and the
20participating municipality or instrumentality which employed
21the participating employee when injured continues to pay the
22participating employee regular salary or other compensation or
23pays the employee an amount in excess of the Workers'
24Compensation amount, then earnings shall be deemed to be the
25total payments, including an amount equal to the Workers'
26Compensation payments. These payments shall be subject to

 

 

SB0053- 15 -LRB102 09993 RPS 15311 b

1employee contributions and allocated as if paid to the
2participating employee when the regular payroll amounts would
3have been paid if the participating employee had continued
4working, and creditable service shall be awarded for this
5period.
6    (d) If an elected official who is a participating employee
7becomes disabled but does not resign and is not removed from
8office, then earnings shall include all salary payments made
9for the remainder of that term of office and the official shall
10be awarded creditable service for the term of office.
11    (e) If a participating employee is paid pursuant to "An
12Act to provide for the continuation of compensation for law
13enforcement officers, correctional officers and firemen who
14suffer disabling injury in the line of duty", approved
15September 6, 1973, as amended, the payments shall be deemed
16earnings, and the participating employee shall be awarded
17creditable service for this period.
18    (f) Additional compensation received by a person while
19serving as a supervisor of assessments, assessor, deputy
20assessor or member of a board of review from the State of
21Illinois pursuant to Section 4-10 or 4-15 of the Property Tax
22Code shall not be earnings for purposes of this Article and
23shall not be included in the contribution formula or
24calculation of benefits for such person pursuant to this
25Article.
26    (g) Notwithstanding any other provision of this Article,

 

 

SB0053- 16 -LRB102 09993 RPS 15311 b

1calendar year earnings for Tier 2 regular employees to whom
2this Section applies shall not exceed the amount determined by
3the Public Pension Division of the Department of Insurance as
4required in this subsection; however, that amount shall
5annually thereafter be increased by the lesser of (i) 3% of
6that amount, including all previous adjustments, or (ii)
7one-half the annual unadjusted percentage increase (but not
8less than zero) in the consumer price index-u for the 12 months
9ending with the September preceding each November 1, including
10all previous adjustments.
11    For the purposes of this Section, "consumer price index-u"
12means the index published by the Bureau of Labor Statistics of
13the United States Department of Labor that measures the
14average change in prices of goods and services purchased by
15all urban consumers, United States city average, all items,
161982-84 = 100. The new amount resulting from each annual
17adjustment shall be determined by the Public Pension Division
18of the Department of Insurance and made available to the Fund
19by November 1 of each year.
20(Source: P.A. 100-411, eff. 8-25-17.)
 
21    (40 ILCS 5/7-116)  (from Ch. 108 1/2, par. 7-116)
22    (Text of Section WITHOUT the changes made by P.A. 98-599,
23which has been held unconstitutional)
24    Sec. 7-116. "Final rate of earnings":
25    (a) For retirement and survivor annuities, the monthly

 

 

SB0053- 17 -LRB102 09993 RPS 15311 b

1earnings obtained by dividing the total earnings received by
2the employee during the period of either (1) for Tier 1 regular
3employees, the 48 consecutive months of service within the
4last 120 months of service in which his total earnings were the
5highest, (2) for Tier 2 regular employees, the 96 consecutive
6months of service within the last 120 months of service in
7which his total earnings were the highest, or (3) or (2) the
8employee's total period of service, by the number of months of
9service in such period.
10    (b) For death benefits, the higher of the rate determined
11under paragraph (a) of this Section or total earnings received
12in the last 12 months of service divided by twelve. If the
13deceased employee has less than 12 months of service, the
14monthly final rate shall be the monthly rate of pay the
15employee was receiving when he began service.
16    (c) For disability benefits, the total earnings of a
17participating employee in the last 12 calendar months of
18service prior to the date he becomes disabled divided by 12.
19    (d) In computing the final rate of earnings: (1) the
20earnings rate for all periods of prior service shall be
21considered equal to the average earnings rate for the last 3
22calendar years of prior service for which creditable service
23is received under Section 7-139 or, if there is less than 3
24years of creditable prior service, the average for the total
25prior service period for which creditable service is received
26under Section 7-139; (2) for out of state service and

 

 

SB0053- 18 -LRB102 09993 RPS 15311 b

1authorized leave, the earnings rate shall be the rate upon
2which service credits are granted; (3) periods of military
3leave shall not be considered; (4) the earnings rate for all
4periods of disability shall be considered equal to the rate of
5earnings upon which the employee's disability benefits are
6computed for such periods; (5) the earnings to be considered
7for each of the final three months of the final earnings period
8for persons who first became participants before January 1,
92012 and the earnings to be considered for each of the final 24
10months for participants who first become participants on or
11after January 1, 2012 shall not exceed 125% of the highest
12earnings of any other month in the final earnings period; and
13(6) the annual amount of final rate of earnings shall be the
14monthly amount multiplied by the number of months of service
15normally required by the position in a year.
16(Source: P.A. 97-609, eff. 1-1-12.)
 
17    (40 ILCS 5/7-141)  (from Ch. 108 1/2, par. 7-141)
18    Sec. 7-141. Retirement annuities - Conditions. Retirement
19annuities shall be payable as hereinafter set forth:
20    (a) A participating employee who, regardless of cause, is
21separated from the service of all participating municipalities
22and instrumentalities thereof and participating
23instrumentalities shall be entitled to a retirement annuity
24provided:
25        1. He is at least age 55 if he is a Tier 1 regular

 

 

SB0053- 19 -LRB102 09993 RPS 15311 b

1    employee, he is age 62 if he is a Tier 2 regular employee,
2    or, in the case of a person who is eligible to have his
3    annuity calculated under Section 7-142.1, he is at least
4    age 50;
5        2. He is not entitled to receive earnings for
6    employment in a position requiring him, or entitling him
7    to elect, to be a participating employee;
8        3. The amount of his annuity, before the application
9    of paragraph (b) of Section 7-142 is at least $10 per
10    month;
11        4. If he first became a participating employee after
12    December 31, 1961 and is a Tier 1 regular employee, he has
13    at least 8 years of service, or, if he is a Tier 2 regular
14    member, he has at least 10 years of service. This service
15    requirement shall not apply to any participating employee,
16    regardless of participation date, if the General Assembly
17    terminates the Fund.
18    (b) Retirement annuities shall be payable:
19        1. As provided in Section 7-119;
20        2. Except as provided in item 3, upon receipt by the
21    fund of a written application. The effective date may be
22    not more than one year prior to the date of the receipt by
23    the fund of the application;
24        3. Upon attainment of age 70 1/2 if the member (i) is
25    no longer in service, and (ii) is otherwise entitled to an
26    annuity under this Article;

 

 

SB0053- 20 -LRB102 09993 RPS 15311 b

1        4. To the beneficiary of the deceased annuitant for
2    the unpaid amount accrued to date of death, if any.
3(Source: P.A. 97-328, eff. 8-12-11; 97-609, eff. 1-1-12.)
 
4    (40 ILCS 5/7-141.1)
5    Sec. 7-141.1. Early retirement incentive.
6    (a) The General Assembly finds and declares that:
7        (1) Units of local government across the State have
8    been functioning under a financial crisis.
9        (2) This financial crisis is expected to continue.
10        (3) Units of local government must depend on
11    additional sources of revenue and, when those sources are
12    not forthcoming, must establish cost-saving programs.
13        (4) An early retirement incentive designed
14    specifically to target highly-paid senior employees could
15    result in significant annual cost savings.
16        (5) The early retirement incentive should be made
17    available only to those units of local government that
18    determine that an early retirement incentive is in their
19    best interest.
20        (6) A unit of local government adopting a program of
21    early retirement incentives under this Section is
22    encouraged to implement personnel procedures to prohibit,
23    for at least 5 years, the rehiring (whether on payroll or
24    by independent contract) of employees who receive early
25    retirement incentives.

 

 

SB0053- 21 -LRB102 09993 RPS 15311 b

1        (7) A unit of local government adopting a program of
2    early retirement incentives under this Section is also
3    encouraged to replace as few of the participating
4    employees as possible and to hire replacement employees
5    for salaries totaling no more than 80% of the total
6    salaries formerly paid to the employees who participate in
7    the early retirement program.
8    It is the primary purpose of this Section to encourage
9units of local government that can realize true cost savings,
10or have determined that an early retirement program is in
11their best interest, to implement an early retirement program.
12    (b) Until June 27, 1997 (the effective date of Public Act
1390-32) this amendatory Act of 1997, this Section does not
14apply to any employer that is a city, village, or incorporated
15town, nor to the employees of any such employer. Beginning on
16June 27, 1997 (the effective date of Public Act 90-32) this
17amendatory Act of 1997, any employer under this Article,
18including an employer that is a city, village, or incorporated
19town, may establish an early retirement incentive program for
20its employees under this Section. The decision of a city,
21village, or incorporated town to consider or establish an
22early retirement program is at the sole discretion of that
23city, village, or incorporated town, and nothing in Public Act
2490-32 this amendatory Act of 1997 limits or otherwise
25diminishes this discretion. Nothing contained in this Section
26shall be construed to require a city, village, or incorporated

 

 

SB0053- 22 -LRB102 09993 RPS 15311 b

1town to establish an early retirement program and no city,
2village, or incorporated town may be compelled to implement
3such a program.
4    The benefits provided in this Section are available only
5to members employed by a participating employer that has filed
6with the Board of the Fund a resolution or ordinance expressly
7providing for the creation of an early retirement incentive
8program under this Section for its employees and specifying
9the effective date of the early retirement incentive program.
10Subject to the limitation in subsection (h), an employer may
11adopt a resolution or ordinance providing a program of early
12retirement incentives under this Section at any time.
13    The resolution or ordinance shall be in substantially the
14following form:
 
15
RESOLUTION (ORDINANCE) NO. ....
16
A RESOLUTION (ORDINANCE) ADOPTING AN EARLY
17
RETIREMENT INCENTIVE PROGRAM FOR EMPLOYEES
18
IN THE ILLINOIS MUNICIPAL RETIREMENT FUND
19    WHEREAS, Section 7-141.1 of the Illinois Pension Code
20provides that a participating employer may elect to adopt an
21early retirement incentive program offered by the Illinois
22Municipal Retirement Fund by adopting a resolution or
23ordinance; and
24    WHEREAS, The goal of adopting an early retirement program
25is to realize a substantial savings in personnel costs by

 

 

SB0053- 23 -LRB102 09993 RPS 15311 b

1offering early retirement incentives to employees who have
2accumulated many years of service credit; and
3    WHEREAS, Implementation of the early retirement program
4will provide a budgeting tool to aid in controlling payroll
5costs; and
6    WHEREAS, The (name of governing body) has determined that
7the adoption of an early retirement incentive program is in
8the best interests of the (name of participating employer);
9therefore be it
10    RESOLVED (ORDAINED) by the (name of governing body) of
11(name of participating employer) that:
12    (1) The (name of participating employer) does hereby adopt
13the Illinois Municipal Retirement Fund early retirement
14incentive program as provided in Section 7-141.1 of the
15Illinois Pension Code. The early retirement incentive program
16shall take effect on (date).
17    (2) In order to help achieve a true cost savings, a person
18who retires under the early retirement incentive program shall
19lose those incentives if he or she later accepts employment
20with any IMRF employer in a position for which participation
21in IMRF is required or is elected by the employee.
22    (3) In order to utilize an early retirement incentive as a
23budgeting tool, the (name of participating employer) will use
24its best efforts either to limit the number of employees who
25replace the employees who retire under the early retirement
26program or to limit the salaries paid to the employees who

 

 

SB0053- 24 -LRB102 09993 RPS 15311 b

1replace the employees who retire under the early retirement
2program.
3    (4) The effective date of each employee's retirement under
4this early retirement program shall be set by (name of
5employer) and shall be no earlier than the effective date of
6the program and no later than one year after that effective
7date; except that the employee may require that the retirement
8date set by the employer be no later than the June 30 next
9occurring after the effective date of the program and no
10earlier than the date upon which the employee qualifies for
11retirement.
12    (5) To be eligible for the early retirement incentive
13under this Section, the employee must have attained age 50 and
14have at least 20 years of creditable service by his or her
15retirement date.
16    (6) The (clerk or secretary) shall promptly file a
17certified copy of this resolution (ordinance) with the Board
18of Trustees of the Illinois Municipal Retirement Fund.
19CERTIFICATION
20    I, (name), the (clerk or secretary) of the (name of
21participating employer) of the County of (name), State of
22Illinois, do hereby certify that I am the keeper of the books
23and records of the (name of employer) and that the foregoing is
24a true and correct copy of a resolution (ordinance) duly
25adopted by the (governing body) at a meeting duly convened and
26held on (date).

 

 

SB0053- 25 -LRB102 09993 RPS 15311 b

1SEAL
2(Signature of clerk or secretary)
 
3    (c) To be eligible for the benefits provided under an
4early retirement incentive program adopted under this Section,
5a member must:
6        (1) be a participating employee of this Fund who, on
7    the effective date of the program, (i) is in active
8    payroll status as an employee of a participating employer
9    that has filed the required ordinance or resolution with
10    the Board, (ii) is on layoff status from such a position
11    with a right of re-employment or recall to service, (iii)
12    is on a leave of absence from such a position, or (iv) is
13    on disability but has not been receiving benefits under
14    Section 7-146 or 7-150 for a period of more than 2 years
15    from the date of application;
16        (2) have never previously received a retirement
17    annuity under this Article or under the Retirement Systems
18    Reciprocal Act using service credit established under this
19    Article;
20        (3) (blank);
21        (4) have at least 20 years of creditable service in
22    the Fund by the date of retirement, without the use of any
23    creditable service established under this Section;
24        (5) have attained age 50 by the date of retirement if
25    he or she is a Tier 1 regular employee or age 57 if he or

 

 

SB0053- 26 -LRB102 09993 RPS 15311 b

1    she is a Tier 2 regular employee, without the use of any
2    age enhancement received under this Section; and
3        (6) be eligible to receive a retirement annuity under
4    this Article by the date of retirement, for which purpose
5    the age enhancement and creditable service established
6    under this Section may be considered.
7    (d) The employer shall determine the retirement date for
8each employee participating in the early retirement program
9adopted under this Section. The retirement date shall be no
10earlier than the effective date of the program and no later
11than one year after that effective date, except that the
12employee may require that the retirement date set by the
13employer be no later than the June 30 next occurring after the
14effective date of the program and no earlier than the date upon
15which the employee qualifies for retirement. The employer
16shall give each employee participating in the early retirement
17program at least 30 days written notice of the employee's
18designated retirement date, unless the employee waives this
19notice requirement.
20    (e) An eligible person may establish up to 5 years of
21creditable service under this Section. In addition, for each
22period of creditable service established under this Section, a
23person shall have his or her age at retirement deemed enhanced
24by an equivalent period.
25    The creditable service established under this Section may
26be used for all purposes under this Article and the Retirement

 

 

SB0053- 27 -LRB102 09993 RPS 15311 b

1Systems Reciprocal Act, except for the computation of final
2rate of earnings and the determination of earnings, salary, or
3compensation under this or any other Article of the Code.
4    The age enhancement established under this Section may be
5used for all purposes under this Article (including
6calculation of the reduction imposed under subdivision
7(a)1b(iv) of Section 7-142), except for purposes of a
8reversionary annuity under Section 7-145 and any distributions
9required because of age. The age enhancement established under
10this Section may be used in calculating a proportionate
11annuity payable by this Fund under the Retirement Systems
12Reciprocal Act, but shall not be used in determining benefits
13payable under other Articles of this Code under the Retirement
14Systems Reciprocal Act.
15    (f) For all creditable service established under this
16Section, the member must pay to the Fund an employee
17contribution consisting of the total employee contribution
18rate in effect at the time the member purchases the service for
19the plan in which the member was participating with the
20employer at that time multiplied by the member's highest
21annual salary rate used in the determination of the final rate
22of earnings for retirement annuity purposes for each year of
23creditable service granted under this Section. Contributions
24for fractions of a year of service shall be prorated. Any
25amounts that are disregarded in determining the final rate of
26earnings under subdivision (d)(5) of Section 7-116 (the 125%

 

 

SB0053- 28 -LRB102 09993 RPS 15311 b

1rule) shall also be disregarded in determining the required
2contribution under this subsection (f).
3    The employee contribution shall be paid to the Fund as
4follows: If the member is entitled to a lump sum payment for
5accumulated vacation, sick leave, or personal leave upon
6withdrawal from service, the employer shall deduct the
7employee contribution from that lump sum and pay the deducted
8amount directly to the Fund. If there is no such lump sum
9payment or the required employee contribution exceeds the net
10amount of the lump sum payment, then the remaining amount due,
11at the option of the employee, may either be paid to the Fund
12before the annuity commences or deducted from the retirement
13annuity in 24 equal monthly installments.
14    (g) An annuitant who has received any age enhancement or
15creditable service under this Section and thereafter accepts
16employment with or enters into a personal services contract
17with an employer under this Article thereby forfeits that age
18enhancement and creditable service; except that this
19restriction does not apply to (1) service in an elective
20office, so long as the annuitant does not participate in this
21Fund with respect to that office, (2) a person appointed as an
22officer under subsection (f) of Section 3-109 of this Code,
23and (3) a person appointed as an auxiliary police officer
24pursuant to Section 3.1-30-5 of the Illinois Municipal Code. A
25person forfeiting early retirement incentives under this
26subsection (i) must repay to the Fund that portion of the

 

 

SB0053- 29 -LRB102 09993 RPS 15311 b

1retirement annuity already received which is attributable to
2the early retirement incentives that are being forfeited, (ii)
3shall not be eligible to participate in any future early
4retirement program adopted under this Section, and (iii) is
5entitled to a refund of the employee contribution paid under
6subsection (f). The Board shall deduct the required repayment
7from the refund and may impose a reasonable payment schedule
8for repaying the amount, if any, by which the required
9repayment exceeds the refund amount.
10    (h) The additional unfunded liability accruing as a result
11of the adoption of a program of early retirement incentives
12under this Section by an employer shall be amortized over a
13period of 10 years beginning on January 1 of the second
14calendar year following the calendar year in which the latest
15date for beginning to receive a retirement annuity under the
16program (as determined by the employer under subsection (d) of
17this Section) occurs; except that the employer may provide for
18a shorter amortization period (of no less than 5 years) by
19adopting an ordinance or resolution specifying the length of
20the amortization period and submitting a certified copy of the
21ordinance or resolution to the Fund no later than 6 months
22after the effective date of the program. An employer, at its
23discretion, may accelerate payments to the Fund.
24    An employer may provide more than one early retirement
25incentive program for its employees under this Section.
26However, an employer that has provided an early retirement

 

 

SB0053- 30 -LRB102 09993 RPS 15311 b

1incentive program for its employees under this Section may not
2provide another early retirement incentive program under this
3Section until the liability arising from the earlier program
4has been fully paid to the Fund.
5(Source: P.A. 99-382, eff. 8-17-15.)
 
6    (40 ILCS 5/7-142)  (from Ch. 108 1/2, par. 7-142)
7    Sec. 7-142. Retirement annuities - Amount.
8    (a) The amount of a retirement annuity shall be the sum of
9the following, determined in accordance with the actuarial
10tables in effect at the time of the grant of the annuity:
11        1. For Tier 1 regular employees with 8 or more years of
12    service or for Tier 2 regular employees, an annuity
13    computed pursuant to subparagraphs a or b of this
14    subparagraph 1, whichever is the higher, and for employees
15    with less than 8 or 10 years of service, respectively, the
16    annuity computed pursuant to subparagraph a:
17            a. The monthly annuity which can be provided from
18        the total accumulated normal, municipality and prior
19        service credits, as of the attained age of the
20        employee on the date the annuity begins provided that
21        such annuity shall not exceed 75% of the final rate of
22        earnings of the employee.
23            b. (i) The monthly annuity amount determined as
24        follows by multiplying (a) 1 2/3% for annuitants with
25        not more than 15 years or (b) 1 2/3% for the first 15

 

 

SB0053- 31 -LRB102 09993 RPS 15311 b

1        years and 2% for each year in excess of 15 years for
2        annuitants with more than 15 years by the number of
3        years plus fractional years, prorated on a basis of
4        months, of creditable service and multiply the product
5        thereof by the employee's final rate of earnings.
6            (ii) For the sole purpose of computing the formula
7        (and not for the purposes of the limitations
8        hereinafter stated) $125 shall be considered the final
9        rate of earnings in all cases where the final rate of
10        earnings is less than such amount.
11            (iii) The monthly annuity computed in accordance
12        with this subparagraph b, shall not exceed an amount
13        equal to 75% of the final rate of earnings.
14            (iv) For employees who have less than 35 years of
15        service, the annuity computed in accordance with this
16        subparagraph b (as reduced by application of
17        subparagraph (iii) above) shall be reduced by 0.25%
18        thereof (0.5% if service was terminated before January
19        1, 1988 or if the employee is a Tier 2 regular
20        employee) for each month or fraction thereof (1) that
21        the employee's age is less than 60 years for Tier 1
22        regular employees, or (2) that the employee's age is
23        less than 67 years for Tier 2 regular employees, or (3)
24        if the employee has at least 30 years of service
25        credit, that the employee's service credit is less
26        than 35 years, whichever is less, on the date the

 

 

SB0053- 32 -LRB102 09993 RPS 15311 b

1        annuity begins.
2        2. The annuity which can be provided from the total
3    accumulated additional credits as of the attained age of
4    the employee on the date the annuity begins.
5    (b) If payment of an annuity begins prior to the earliest
6age at which the employee will become eligible for an old age
7insurance benefit under the Federal Social Security Act, he
8may elect that the annuity payments from this fund shall
9exceed those payable after his attaining such age by an
10amount, computed as determined by rules of the Board, but not
11in excess of his estimated Social Security Benefit, determined
12as of the effective date of the annuity, provided that in no
13case shall the total annuity payments made by this fund exceed
14in actuarial value the annuity which would have been payable
15had no such election been made.
16    (c) The retirement annuity shall be increased each year by
172%, not compounded, of the monthly amount of annuity, taking
18into consideration any adjustment under paragraph (b) of this
19Section. This increase shall be effective each January 1 and
20computed from the effective date of the retirement annuity,
21the first increase being .167% of the monthly amount times the
22number of months from the effective date to January 1.
23Beginning January 1, 1984 and each January 1 thereafter, the
24retirement annuity of a Tier 1 regular employee shall be
25increased by 3% each year, not compounded. This increase shall
26be computed from the effective date of the retirement annuity,

 

 

SB0053- 33 -LRB102 09993 RPS 15311 b

1the first increase being 0.25% of the monthly amount times the
2number of months from the effective date to January 1. This
3increase shall not be applicable to annuitants who are not in
4service on or after September 8, 1971.
5    A retirement annuity of a Tier 2 regular employee shall
6receive annual increases on the January 1 occurring either on
7or after the attainment of age 67 or the first anniversary of
8the annuity start date, whichever is later. Each annual
9increase shall be calculated at the lesser of 3% or one-half
10the annual unadjusted percentage increase (but not less than
11zero) in the consumer price index-u for the 12 months ending
12with the September preceding each November 1 of the originally
13granted retirement annuity. If the annual unadjusted
14percentage change in the consumer price index-u for the 12
15months ending with the September preceding each November 1 is
16zero or there is a decrease, then the annuity shall not be
17increased.
18    (d) Any elected county officer who was entitled to receive
19a stipend from the State on or after July 1, 2009 and on or
20before June 30, 2010 may establish earnings credit for the
21amount of stipend not received, if the elected county official
22applies in writing to the fund within 6 months after the
23effective date of this amendatory Act of the 96th General
24Assembly and pays to the fund an amount equal to (i) employee
25contributions on the amount of stipend not received, (ii)
26employer contributions determined by the Board equal to the

 

 

SB0053- 34 -LRB102 09993 RPS 15311 b

1employer's normal cost of the benefit on the amount of stipend
2not received, plus (iii) interest on items (i) and (ii) at the
3actuarially assumed rate.
4(Source: P.A. 96-961, eff. 7-2-10.)
 
5    (40 ILCS 5/7-144)  (from Ch. 108 1/2, par. 7-144)
6    Sec. 7-144. Retirement annuities - suspended during
7employment.
8    (a) If any person receiving any annuity again becomes an
9employee and receives earnings from employment in a position
10requiring him, or entitling him to elect, to become a
11participating employee, then the annuity payable to such
12employee shall be suspended as of the 1st day of the month
13coincidental with or next following the date upon which such
14person becomes such an employee, unless the person is
15authorized under subsection (b) of Section 7-137.1 of this
16Code to continue receiving a retirement annuity during that
17period. Upon proper qualification of the participating
18employee payment of such annuity may be resumed on the 1st day
19of the month following such qualification and upon proper
20application therefor. The participating employee in such case
21shall be entitled to a supplemental annuity arising from
22service and credits earned subsequent to such re-entry as a
23participating employee.
24    Notwithstanding any other provision of this Article, an
25annuitant shall be considered a participating employee if he

 

 

SB0053- 35 -LRB102 09993 RPS 15311 b

1or she returns to work as an employee with a participating
2employer and works more than 599 hours annually (or 999 hours
3annually with a participating employer that has adopted a
4resolution pursuant to subsection (e) of Section 7-137 of this
5Code). Each of these annual periods shall commence on the
6month and day upon which the annuitant is first employed with
7the participating employer following the effective date of the
8annuity.
9    (a-5) If any annuitant under this Article must be
10considered a participating employee per the provisions of
11subsection (a) of this Section, and the participating
12municipality or participating instrumentality that employs or
13re-employs that annuitant knowingly fails to notify the Board
14to suspend the annuity, the participating municipality or
15participating instrumentality may be required to reimburse the
16Fund for an amount up to one-half of the total of any annuity
17payments made to the annuitant after the date the annuity
18should have been suspended, as determined by the Board. In no
19case shall the total amount repaid by the annuitant plus any
20amount reimbursed by the employer to the Fund be more than the
21total of all annuity payments made to the annuitant after the
22date the annuity should have been suspended. This subsection
23shall not apply if the annuitant returned to work for the
24employer for less than 12 months.
25    The Fund shall notify all annuitants that they must notify
26the Fund immediately if they return to work for any

 

 

SB0053- 36 -LRB102 09993 RPS 15311 b

1participating employer. The notification by the Fund shall
2occur upon retirement and no less than annually thereafter in
3a format determined by the Fund. The Fund shall also develop
4and maintain a system to track annuitants who have returned to
5work and notify the participating employer and annuitant at
6least annually of the limitations on returning to work under
7this Section.
8    (b) Supplemental annuities to persons who return to
9service for less than 48 months shall be computed under the
10provisions of Sections 7-141, 7-142 and 7-143. In determining
11whether an employee is eligible for an annuity which requires
12a minimum period of service, his entire period of service
13shall be taken into consideration but the supplemental annuity
14shall be based on earnings and service in the supplemental
15period only. The effective date of the suspended and
16supplemental annuity for the purpose of increases after
17retirement shall be considered to be the effective date of the
18suspended annuity.
19    (c) Supplemental annuities to persons who return to
20service for 48 months or more shall be a monthly amount
21determined as follows:
22        (1) An amount shall be computed under subparagraph b
23    of paragraph (1) of subsection (a) of Section 7-142,
24    considering all of the service credits of the employee;
25        (2) The actuarial value in monthly payments for life
26    of the annuity payments made before suspension shall be

 

 

SB0053- 37 -LRB102 09993 RPS 15311 b

1    determined and subtracted from the amount determined in
2    (1) above;
3        (3) The monthly amount of the suspended annuity, with
4    any applicable increases after retirement computed from
5    the effective date to the date of reinstatement, shall be
6    subtracted from the amount determined in (2) above and the
7    remainder shall be the amount of the supplemental annuity
8    provided that this amount shall not be less than the
9    amount computed under subsection (b) of this Section.
10        (4) The suspended annuity shall be reinstated at an
11    amount including any increases after retirement from the
12    effective date to date of reinstatement.
13        (5) The effective date of the combined suspended and
14    supplemental annuities for the purposes of increases after
15    retirement shall be considered to be the effective date of
16    the supplemental annuity.
17    (d) If a Tier 2 regular employee becomes a member or
18participant under any other system or fund created by this
19Code and is employed on a full-time basis, except for those
20members or participants exempted from the provisions of
21subsection (a) of Section 1-160 of this Code (other than a
22participating employee under this Article), then the person's
23retirement annuity shall be suspended during that employment.
24Upon termination of that employment, the person's retirement
25annuity shall resume and be recalculated as required by this
26Section.

 

 

SB0053- 38 -LRB102 09993 RPS 15311 b

1    (e) If a Tier 2 regular employee first began participation
2on or after January 1, 2012 and is receiving a retirement
3annuity and accepts on a contractual basis a position to
4provide services to a governmental entity from which he or she
5has retired, then that person's annuity or retirement pension
6shall be suspended during that contractual service,
7notwithstanding the provisions of any other Section in this
8Article. Such annuitant shall notify the Fund, as well as his
9or her contractual employer, of his or her retirement status
10before accepting contractual employment. A person who fails to
11submit such notification shall be guilty of a Class A
12misdemeanor and required to pay a fine of $1,000. Upon
13termination of that contractual employment, the person's
14retirement annuity shall resume and be recalculated as
15required by this Section.
16(Source: P.A. 98-389, eff. 8-16-13; 99-745, eff. 8-5-16.)
 
17    (40 ILCS 5/7-156)  (from Ch. 108 1/2, par. 7-156)
18    Sec. 7-156. Surviving spouse annuities - amount.
19    (a) The amount of surviving spouse annuity shall be:
20    1. Upon the death of an employee annuitant or such person
21entitled, upon application, to a retirement annuity at date of
22death, (i) an amount equal to 1/2 50% for a Tier 1 regular
23employee or 66 2/3% for a Tier 2 regular employee of the
24retirement annuity which was or would have been payable
25exclusive of the amount so payable which was provided from

 

 

SB0053- 39 -LRB102 09993 RPS 15311 b

1additional credits, and disregarding any election made under
2paragraph (b) of Section 7-142, plus (ii) an annuity which
3could be provided at the then attained age of the surviving
4spouse and under actuarial tables then in effect, from the
5excess of the additional credits, (excluding any such credits
6used to create a reversionary annuity) used to provide the
7annuity granted pursuant to paragraph (a) (2) of Section 7-142
8of this article over the total annuity payments made pursuant
9thereto.
10    2. Upon the death of a participating employee on or after
11attainment of age 55, an amount equal to 1/2 50% for a Tier 1
12regular employee or 66 2/3% for a Tier 2 regular employee of
13the retirement annuity which he could have had as of the date
14of death had he then retired and applied for annuity,
15exclusive of the portion thereof which could have been
16provided from additional credits, and disregarding paragraph
17(b) of Section 7-142, plus an amount equal to the annuity which
18could be provided from the total of his accumulated additional
19credits at date of death, on the basis of the attained age of
20the surviving spouse on such date.
21    3. Upon the death of a participating employee before age
2255, an amount equal to 1/2 50% for a Tier 1 regular employee or
2366 2/3% for a Tier 2 regular employee of the retirement annuity
24which he could have had as of his attained age on the date of
25death, had he then retired and applied for annuity, and the
26provisions of this Article that no such annuity shall begin

 

 

SB0053- 40 -LRB102 09993 RPS 15311 b

1until the employee has attained at least age 55 were not
2applicable, exclusive of the portion thereof which could have
3been provided from additional credits and disregarding
4paragraph (b) of Section 7-142, plus an amount equal to the
5annuity which could be provided from the total of his
6accumulated additional credits at date of death, on the basis
7of the attained age of the surviving spouse on such date.
8    In the case of the surviving spouse of a person who dies
9before June 1, 2006 (the effective date of Public Act 94-712)
10this amendatory Act of the 94th General Assembly, if the
11surviving spouse is more than 5 years younger than the
12deceased, that portion of the annuity which is not based on
13additional credits shall be reduced in the ratio of the value
14of a life annuity of $1 per year at an age of 5 years less than
15the attained age of the deceased, at the earlier of the date of
16the death or the date his retirement annuity begins, to the
17value of a life annuity of $1 per year at the attained age of
18the surviving spouse on such date, according to actuarial
19tables approved by the Board. This reduction does not apply to
20the surviving spouse of a person who dies on or after June 1,
212006 (the effective date of Public Act 94-712) this amendatory
22Act of the 94th General Assembly.
23    In computing the amount of a surviving spouse annuity,
24incremental increases of retirement annuities to the date of
25death of the employee annuitant shall be considered.
26    (b) If the employee was a Tier 1 regular employee, each

 

 

SB0053- 41 -LRB102 09993 RPS 15311 b

1Each surviving spouse annuity payable on January 1, 1988 shall
2be increased on that date by 3% of the original amount of the
3annuity. Each surviving spouse annuity that begins after
4January 1, 1988 shall be increased on the January 1 next
5occurring after the annuity begins, by an amount equal to (i)
63% of the original amount thereof if the deceased employee was
7receiving a retirement annuity at the time of his death;
8otherwise (ii) 0.25% 0.167% of the original amount thereof for
9each complete month which has elapsed since the date the
10annuity began.
11    On each January 1 after the date of the initial increase
12under this subsection, each surviving spouse annuity shall be
13increased by 3% of the originally granted amount of the
14annuity.
15    (c) If the participating employee was a Tier 2 regular
16employee, each surviving spouse annuity shall be increased (1)
17on each January 1 occurring on or after the commencement of the
18annuity if the deceased member died while receiving a
19retirement annuity or (2) in other cases, on each January 1
20occurring after the first anniversary of the commencement of
21the annuity. Such annual increase shall be calculated at 3% or
22one-half the annual unadjusted percentage increase (but not
23less than zero) in the consumer price index-u for the 12 months
24ending with the September preceding each November 1, whichever
25is less, of the originally granted surviving spouse annuity.
26If the annual unadjusted percentage change in the consumer

 

 

SB0053- 42 -LRB102 09993 RPS 15311 b

1price index-u for the 12 months ending with the September
2preceding each November 1 is zero or there is a decrease, then
3the annuity shall not be increased.
4(Source: P.A. 94-712, eff. 6-1-06.)
 
5    (40 ILCS 5/7-191)  (from Ch. 108 1/2, par. 7-191)
6    Sec. 7-191. To have accounts audited.
7    To have the accounts of the fund audited annually by a
8certified public accountant approved by the Auditor General.
9(Source: Laws 1963, p. 161.)
 
10    Section 90. The State Mandates Act is amended by adding
11Section 8.45 as follows:
 
12    (30 ILCS 805/8.45 new)
13    Sec. 8.45. Exempt mandate. Notwithstanding Sections 6 and
148 of this Act, no reimbursement by the State is required for
15the implementation of any mandate created by this amendatory
16Act of the 102nd General Assembly.

 

 

SB0053- 43 -LRB102 09993 RPS 15311 b

1 INDEX
2 Statutes amended in order of appearance
3    40 ILCS 5/1-160
4    40 ILCS 5/7-109.4 new
5    40 ILCS 5/7-109.5 new
6    40 ILCS 5/7-114from Ch. 108 1/2, par. 7-114
7    40 ILCS 5/7-116from Ch. 108 1/2, par. 7-116
8    40 ILCS 5/7-141from Ch. 108 1/2, par. 7-141
9    40 ILCS 5/7-141.1
10    40 ILCS 5/7-142from Ch. 108 1/2, par. 7-142
11    40 ILCS 5/7-144from Ch. 108 1/2, par. 7-144
12    40 ILCS 5/7-156from Ch. 108 1/2, par. 7-156
13    40 ILCS 5/7-191from Ch. 108 1/2, par. 7-191
14    30 ILCS 805/8.45 new