093_HB2144

 
                                     LRB093 07682 EFG 07863 b

 1        AN ACT in relation to public employee benefits.

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

 4        Section  5.   The  Illinois  Pension  Code  is amended by
 5    changing Section 9-134 as follows:

 6        (40 ILCS 5/9-134) (from Ch. 108 1/2, par. 9-134)
 7        Sec. 9-134.  Minimum annuity - Additional provisions.
 8        (a)  An employee who withdraws after July 1, 1957 at  age
 9    60  or  more  with  20 or more years of service, for whom the
10    amount of age and service and prior service annuity  combined
11    is  less than the amount stated in this Section from the date
12    of withdrawal, instead of all annuities otherwise provided in
13    this Article, is entitled to receive an annuity for  life  of
14    an  amount  equal  to 1 2/3% for each year of service, of his
15    highest average annual salary for  any  5  consecutive  years
16    within the last 10 years of service immediately preceding the
17    date of withdrawal; provided that in the case of any employee
18    who  withdraws on or after July 1, 1971, such employee age 60
19    or over with 20 or more years of service, or who withdraws on
20    or after January 1, 1982 and on or after attainment of age 65
21    with 10 or more years of service, shall  instead  receive  an
22    annuity  for  life  equal  to  1.67% for each of the first 10
23    years of service; 1.90% for each of  the  next  10  years  of
24    service;  2.10%  for each year of service in excess of 20 but
25    not exceeding 30; and 2.30%  for  each  year  of  service  in
26    excess  of 30, based on the highest average annual salary for
27    any 4 consecutive years within the last 10 years  of  service
28    immediately preceding the date of withdrawal.
29        An  employee  who withdraws after July 1, 1957, but prior
30    to January 1, 1988, with 20 or more years of service,  before
31    age  60 is entitled to annuity, to begin not earlier than age
 
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 1    55, if under such age at withdrawal, as computed in the  last
 2    preceding paragraph, reduced 1/2 of 1% for each full month or
 3    fractional part thereof that his attained age when annuity is
 4    to  begin is less than 60 to the end that the total reduction
 5    at age 55 shall be 30%, except that an employee  retiring  at
 6    age 55 or over but less than age 60, having at least 35 years
 7    of  service,  shall  not  be  subject to the reduction in his
 8    retirement annuity because of retirement below age 60.
 9        An employee who withdraws on or after  January  1,  1988,
10    with  20  or  more  years  of  service  and before age 60, is
11    entitled to annuity as computed above, to begin  not  earlier
12    than  age  50 if under such age at withdrawal, reduced 1/2 of
13    1% for each full month or fractional part  thereof  that  his
14    attained age when annuity is to begin is less than 60, to the
15    end  that  the total reduction at age 50 shall be 60%, except
16    that an employee retiring at age 50 or over but less than age
17    60, having at least 30 years of service, shall not be subject
18    to the reduction in retirement annuity because of  retirement
19    below age 60.
20        An employee who withdraws on or after January 1, 1992 but
21    before  January  1,  1993,  at  age 60 or over with 5 or more
22    years of service, may elect, in lieu of  any  other  employee
23    annuity  provided  in this Section, to receive an annuity for
24    life equal to 2.20%  for  each  of  the  first  20  years  of
25    service,  and 2.40% for each year of service in excess of 20,
26    based  on  the  highest  average  annual  salary  for  any  4
27    consecutive  years  within  the  last  10  years  of  service
28    immediately preceding the date of  withdrawal.   An  employee
29    who withdraws on or after January 1, 1992, but before January
30    1,  1993,  on  or  after  attainment  of  age  55  but before
31    attainment of age 60 with 5 or  more  years  of  service,  is
32    entitled  to  elect  such  annuity,  but the annuity shall be
33    reduced 0.25% for each full month or fractional part  thereof
34    that  his  attained  age when the annuity is to begin is less
 
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 1    than age 60, to the end that the total reduction  at  age  55
 2    shall  be  15%, except that an employee retiring at age 55 or
 3    over but less than age  60,  having  at  least  30  years  of
 4    service,  shall not be subject to the reduction in retirement
 5    annuity because of retirement below  age  60.   This  annuity
 6    benefit  formula  shall only apply to those employees who are
 7    age 55 or over prior to January 1, 1993,  and  who  elect  to
 8    withdraw  at  age  55 or over on or after January 1, 1992 but
 9    before January 1, 1993.
10        An employee who withdraws on or after July  1,  1996  but
11    before August 1, 1996, at age 55 or over with 8 or more years
12    of  service, may elect, in lieu of any other employee annuity
13    provided in this Section, to  receive  an  annuity  for  life
14    equal to 2.20% for each of the first 20 years of service, and
15    2.40%  for each year of service in excess of 20, based on the
16    highest average annual salary for  any  4  consecutive  years
17    within the last 10 years of service immediately preceding the
18    date of withdrawal, but the annuity shall be reduced by 0.25%
19    for  each  full  month  or  fractional  part thereof that the
20    annuitant's attained age when the annuity is to begin is less
21    than age 60, unless the annuitant has at least  30  years  of
22    service.
23        The  maximum  annuity  under this paragraph (a) shall not
24    exceed 70%  of  highest  average  annual  salary  for  any  5
25    consecutive  years within the last 10 years of service in the
26    case of an employee who withdraws prior to July 1, 1971,  and
27    75%   of   the  highest  average  annual  salary  for  any  4
28    consecutive  years  within  the  last  10  years  of  service
29    immediately preceding the date of  withdrawal  if  withdrawal
30    takes  place on or after July 1, 1971 and prior to January 1,
31    1988, and 80% of the highest average annual salary for any  4
32    consecutive  years  within  the  last  10  years  of  service
33    immediately  preceding  the  date of withdrawal if withdrawal
34    takes place on or after  January  1,  1988.  Fifteen  hundred
 
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 1    dollars  shall  be  considered  the  minimum amount of annual
 2    salary for any year, and the maximum shall be his  salary  as
 3    defined  in  this  Article,  except that for the years before
 4    1957 and subsequent to 1952 the maximum annual salary  to  be
 5    considered  shall be $6,000, and for any year before the year
 6    1953, $4,800.
 7        (b)  Any employee who withdraws on or after July 1,  1985
 8    but  prior  to  January 1, 1988, at age 60 or over with 10 or
 9    more years of service, may elect in lieu of  the  benefit  in
10    paragraph  (a)  to receive an annuity for life equal to 2.00%
11    for each year of service, based on the highest average annual
12    salary for any 4 consecutive years within the last  10  years
13    of  service immediately preceding the date of withdrawal.  An
14    employee who withdraws on or after July 1, 1985, but prior to
15    January 1, 1988, with 10 or more years of service, but before
16    age 60, is entitled to  elect  such  annuity,  to  begin  not
17    earlier  than  age  55, but the annuity shall be reduced 0.5%
18    for each full month  or  fractional  part  thereof  that  his
19    attained age when the annuity is to begin is less than 60, to
20    the  end  that  the  total  reduction at age 55 shall be 30%;
21    except that an employee retiring at age 55 or over  but  less
22    than  age  60, having at least 30 years of service, shall not
23    be subject to the reduction in retirement annuity because  of
24    retirement below age 60.
25        An employee who withdraws on or after January 1, 1988, at
26    age  60  or over with 10 or more years of service, may elect,
27    in lieu of the  benefit  in  paragraph  (a),  to  receive  an
28    annuity  for  life  equal  to  2.20% for each of the first 20
29    years of service, and 2.4% for each year of service in excess
30    of 20, based on the highest average annual salary for  any  4
31    consecutive  years  within  the  last  10  years  of  service
32    immediately preceding the date of withdrawal. An employee who
33    withdraws  on or after January 1, 1988, with 10 or more years
34    of service, but before age 60,  is  entitled  to  elect  such
 
                            -5-      LRB093 07682 EFG 07863 b
 1    annuity,  to  begin  not earlier than age 50, but the annuity
 2    shall be reduced 0.5% for each full month or fractional  part
 3    thereof that his attained age when the annuity is to begin is
 4    less  than  60, to the end that the total reduction at age 50
 5    shall be 60%, except that an employee retiring at age  50  or
 6    over  but  less  than  age  60,  having  at least 30 years of
 7    service, shall not be subject to the reduction in  retirement
 8    annuity because of retirement below age 60.
 9        An  employee who withdraws on or after June 30, 2002 with
10    10 or more years of service may elect, in lieu of  any  other
11    retirement annuity provided under this Article, to receive an
12    annuity  for  life, beginning no earlier than upon attainment
13    of age 50, equal to 2.40%  of  his  or  her  highest  average
14    annual  salary for any 4 consecutive years within the last 10
15    years of service immediately preceding withdrawal,  for  each
16    year  of  service.  If the employee has less than 30 years of
17    service, the annuity shall be reduced by 0.5% for  each  full
18    month  or  remaining  fraction  thereof  that  the employee's
19    attained age when the annuity is to begin is less than 60.
20        The maximum annuity under this paragraph  (b)  shall  not
21    exceed  75%  of  the  highest average annual salary for any 4
22    consecutive  years  within  the  last  10  years  of  service
23    immediately preceding the date of  withdrawal  if  withdrawal
24    occurs  prior  to  January  1,  1988,  or  80% of the highest
25    average annual salary for any 4 consecutive years within  the
26    last  10  years  of service immediately preceding the date of
27    withdrawal if withdrawal takes place on or after  January  1,
28    1988.
29        The  provisions of this paragraph (b) do not apply to any
30    former County employee receiving an annuity  from  the  fund,
31    who re-enters service as a County employee, unless he renders
32    at  least  3  years  of  additional service after the date of
33    re-entry.
34        (b-5)  A  deputy  sheriff  or  correctional  officer  who
 
                            -6-      LRB093 07682 EFG 07863 b
 1    retires on or after July 1, 2003 with 20  or  more  years  of
 2    service  may  elect,  in lieu of any other retirement annuity
 3    provided under this Article, to receive an annuity for  life,
 4    beginning  no  earlier  than  upon  the attainment of age 50,
 5    equal to 2.4% for each year of service of the highest average
 6    annual salary for any 4 consecutive years within the last  10
 7    years  of  service.   Any such deputy sheriff or correctional
 8    officer who elects to retire under this provision  shall  not
 9    be  eligible  for  added  benefits  as provided under Section
10    9-179.3.
11        (c)  For an employee receiving  disability  benefit,  the
12    salary  for  annuity  purposes  under paragraph (a) or (b) of
13    this Section shall, for all  periods  of  disability  benefit
14    subsequent  to  the  year  1956,  be  the amount on which his
15    disability benefit was based.
16        (d)  A county employee with 20 or more years of  service,
17    whose  entire disability benefit credit period expires before
18    attainment of age 50 (age  55  if  expiration  occurs  before
19    January  1,  1988),  while  still  disabled  for  service  is
20    entitled upon withdrawal to the larger of:
21             (1)  The  minimum  annuity  provided above, assuming
22        that he is then age  50  (age  55  if  expiration  occurs
23        before January 1, 1988), and reducing such annuity to its
24        actuarial equivalent at his attained age on such date, or
25             (2)  the  annuity  provided from his age and service
26        and prior service annuity credits.
27        (e)  The minimum annuity provisions above do not apply to
28    any former county employee  receiving  an  annuity  from  the
29    fund,  who  re-enters service as a county employee, unless he
30    renders at least 3 years of additional service after the date
31    of re-entry.
32        (f)  Any employee in service on  July  1,  1947,  or  who
33    enters   service  thereafter  before  attaining  age  65  and
34    withdraws after age 65 with less than 10 years of service for
 
                            -7-      LRB093 07682 EFG 07863 b
 1    whom the annuity has been fixed under the foregoing  Sections
 2    of  this  Article,  shall,  instead  of the annuity so fixed,
 3    receive an annuity as follows:
 4        Such amount as he could have received had the accumulated
 5    amounts for  annuity  been  improved  with  interest  at  the
 6    effective rate to the date of withdrawal, or to attainment of
 7    age  70, whichever is earlier, and had the county contributed
 8    to such earlier date for age and service annuity  the  amount
 9    that  it  would  have  contributed  had he been under age 65,
10    after the date his annuity was fixed in accordance with  this
11    Article,  and  assuming  his  annuity were computed from such
12    accumulations as of his age on  such  earlier  date.  However
13    those  employees  who  before  July  1, 1953, made additional
14    contributions in accordance with this Article, the annuity so
15    computed under this paragraph shall not  exceed  the  annuity
16    which  would  be  payable  under the other provisions of this
17    Section if the employee concerned was credited with 20  years
18    of service and would qualify for annuity thereunder.
19        (g)  Instead of the annuity provided in this or any other
20    Section  of  this Article, an employee having attained age 65
21    with at least 15 years of service  may  elect  to  receive  a
22    minimum  annual  annuity  for life equal to 1% of the highest
23    average annual salary for any 4 consecutive years within  the
24    last 10 years of service immediately preceding retirement for
25    each  year  of  service, plus the sum of $25 for each year of
26    service provided that no such minimum annual annuity  may  be
27    greater than 60% of such highest average annual salary.
28        (h)  The    annuity   is   payable   in   equal   monthly
29    installments.
30        (i)  If,  by  operation  of  law,   a   function   of   a
31    governmental unit, as defined by Section 20-107 of this Code,
32    is  transferred  in  whole  or in part to the county in which
33    this Article 9 is created as set forth in Section 9-101,  and
34    employees of the governmental unit are transferred as a class
 
                            -8-      LRB093 07682 EFG 07863 b
 1    to such county, the earnings credits in the retirement system
 2    covering  the  governmental  unit  which  have been validated
 3    under Section 20-109 of this  Code  shall  be  considered  in
 4    determining the highest average annual salary for purposes of
 5    this Section 9-134.
 6        (j)  The  annuity  being paid to an employee annuitant on
 7    July 1, 1988, shall be increased on that date by 1% for  each
 8    full year that has elapsed from the date the annuity began.
 9        (k)  Notwithstanding  anything  to  the  contrary in this
10    Article 9, Section 20-131 shall not apply to an employee  who
11    withdraws on or after January 1, 1988, but prior to attaining
12    age 55.  Therefore, no employee shall be entitled to elect to
13    have  the alternative formula previously set forth in Section
14    20-122 prior to the amendatory  Act  of  1975  apply  to  any
15    annuity,  the  payment  of  which  commenced after January 1,
16    1988, but prior to such employee's attainment of age 55.
17    (Source: P.A. 92-599, eff. 6-28-02.)

18        Section 90.  The State Mandates Act is amended by  adding
19    Section 8.27 as follows:

20        (30 ILCS 805/8.27 new)
21        Sec.  8.27.  Exempt  mandate.  Notwithstanding Sections 6
22    and 8 of this Act, no reimbursement by the State is  required
23    for  the  implementation  of  any  mandate  created  by  this
24    amendatory Act of the 93rd General Assembly.

25        Section  99.  Effective date.  This Act takes effect upon
26    becoming law.